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Council schedules April hearing, considers bonding up to $1.47M to buy Fernald conservation easement for reservoir protection

2698260 · March 18, 2025
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Summary

The council scheduled a public hearing for April 7 to consider bonding authorization, up to $1,470,000, to purchase a 44.6‑acre conservation easement on the Fernald property to protect water quality at the Bellamy Reservoir. Grants and a congressionally directed award were discussed as potential reimbursements.

The Portsmouth City Council voted on March 17 to schedule a public hearing for April 7 to consider authorizing bonding of up to $1,470,000 to acquire a conservation easement on the Fernald property, a 44.6-acre parcel abutting the Bellamy Reservoir intended to protect the city’s water supply.

City staff summarized prior actions: on July 10, 2023 the council authorized a supplemental appropriation from the city's water fund unrestricted net position and anticipated grants from the New Hampshire Drinking Water and Groundwater Trust Fund and the New Hampshire DES Local Source Water Protection Program for the purchase. In 2024 a congressionally directed grant of $714,000 was awarded for the project; staff said the bonding request would allow closing to proceed on schedule if federal or other grant disbursements are delayed.

“...we just don't want to lose sight of the fact of a timely closing with the property owner,” the City Manager said. Councilor Taber requested that the packet for the April hearing include an updated CIP restatement and the city’s debt-limit calculation showing the effect if federal funding did not arrive. The City Manager clarified the proposed funding would come from the water enterprise fund and be eligible for reimbursement if grants are received.

Why it matters: the conservation easement is intended to protect drinking-water quality for Portsmouth by preserving land around the Bellamy Reservoir. The council’s action only schedules the public hearing; the bonding authorization would be decided after the April 7 hearing and packet materials requested by Councilor Taber.

The council voted to place the public hearing on the April 7 agenda; no bonding authorization was adopted on March 17.