Portsmouth manager proposes $149.9 million FY26 budget with 15.11 FTE reductions, 39¢ tax-rate increase

City Manager Karen Conard and Deputy City Manager Nathan Lenny on Monday presented the Portsmouth City Council with a proposed fiscal 2026 general fund budget of $149,894,940, a roughly $5 million increase over FY25 that would raise the estimated tax rate from $11.18 to $11.57 per $1,000 in assessed value.

The proposal, designed to “not negatively impact services provided to residents,” as Conard said, would reduce the city’s workforce by 15.11 full‑time equivalent positions citywide — 10.71 FTEs from the general fund — and includes a $1,990,000 contingency to cover expected costs from negotiating contracts for eight of the city’s 16 unions that expire June 30.

“The proposed budget for FY26 is $149,894,940,” Deputy City Manager Nathan Lenny said. “It’s a $5,000,000 increase and lands at 3.47%.” Lenny told councilors the change translates to an estimated $301.12 per year, or about $25.10 per month, for the median single‑family home valued at $772,100.

Why it matters

Lenny emphasized two legally driven cost drivers that together add roughly $1.4 million to the budget: a…