Portsmouth Council adopts $149.9 million FY26 budget after heated public hearing; several amendment bids fail

The Portsmouth City Council adopted the fiscal year 2026 general fund budget and related fund resolutions at its June 20 meeting, approving a $149,894,940 general fund total after a multi‑hour public hearing and extensive debate.

The council voted to adopt a package of budget‑related resolutions including municipal fees, general fund expenditures, the water fund and sewer fund budgets and several special fund and policy items. The council’s final approval of the general fund (Resolution 8‑2025) passed by roll call 7–2. The municipal fees resolution (Resolution 7‑2025), water fund (Resolution 9‑2025) and sewer fund (Resolution 10‑2025) each passed on roll call; several administrative and investment resolutions passed unanimously.

The meeting included three contested amendment motions introduced by Councilor Bagley that sought to reallocate funds without increasing the manager’s recommended overall total. Those amendment efforts failed: - A motion to set the police department budget at the FY25 funding level (level‑funding rather than the manager’s proposed increase) failed on a roll call, 8–1 (only Councilor Bagley voted yes); the council discussed police overtime, minimum staffing at 70 officers, and whether salary savings and overtime practices were being clearly reported. - A motion to increase the school department budget by $153,000 above the manager’s recommendation (to preserve counseling and paraeducator positions cited by some speakers) failed on a roll call, 4–5. - A motion to increase the fire department budget by $112,000 to fund a training position also failed, 2–7.

Public comment before and during the hearing featured repeated concerns about taxes, utility rate increases and school spending. Residents cited recent property valuation increases and rising water and sewer rates; one commenter called on the council to seek voter approval before adding programs that affect taxes. School board members and parents urged continued investment in special‑education, counseling and early‑intervention staff. Byron Meadow, a school board member, emphasized the fiscal stakes of special‑education placements and said the positions included in the school budget are intended to reduce future outsized costs: “Fund the school board’s budget. Let’s keep Portsmouth learning, thriving, and leading because our children deserve nothing less,” Meadow said.

Other public commenters urged fiscal restraint and questioned whether positions added after COVID are sustainable amid enrollment declines; the transcript records alternate viewpoints from residents and school officials. School board members, the superintendent and other supporters described federal COVID funding that has expired and argued some positions were critical to sustain gains in student performance.

Council discussion also addressed parking policy and a proposed resident 15‑minute free parking session managed through the ParkMobile system. Public testimony and council staff (DPW Director Peter Rice and Parking Director Ben Fletcher) noted a projected direct revenue loss and operational impacts. Parking staff estimated that a single 15‑minute free session for registered residents could reduce meter and citation revenues and change parking turnover behavior; a conservative staff calculation supplied ahead of the public hearing estimated an approximate $300,000 fiscal impact and warned about inventory and short‑term transaction behavior that could increase congestion—which staff said would be difficult to manage until additional inventory is created.

Roll‑call votes were recorded for the principal resolutions. Highlights: Resolution 7‑2025 (Municipal Fees) passed unanimously; Resolution 8‑2025 (General Fund Expenditures) passed 7–2 (Yes: Assistant Mayor Kelly; Councilor Tabor; Councilor Denton; Councilor Blaylock; Councilor Moreau; Councilor Lombardi; Mayor McCaffery. No: Councilor Cook; Councilor Bagley). Resolution 9‑2025 (Water Fund) and Resolution 10‑2025 (Sewer Fund) passed unanimously; Resolutions 11‑2025 and 12‑2025 (special revenues and investment policy) also passed unanimously.

Council members and staff noted next steps: additional hearings and implementation items will move through administrative channels, and several budget items (including any supplemental appropriations the police department may later request) could be revisited mid‑year if salary‑savings and overtime variances require adjustments. Bonding items and second‑reading ordinance items will follow established notice periods; the council also scheduled additional discussion of parking‑inventory issues and the ParkMobile resident‑session proposal ahead of any program changes.

The council concluded the meeting after approving related administrative items and taking several additional staff requests under advisement.