Portsmouth presents provisional FY2026 budget showing $76.94 million in expenditures; final adoption set for June 23

Portsmouth Town Council reviewed the town and school provisional budget for fiscal year 2026 at a public hearing on June 11, 2025, with staff presenting line-item details and the council scheduling final adoption for June 23.

The finance presentation stated, “The provisional budget approved $76,940,969 in expenditures from the general fund,” and showed a recommended residential and commercial property tax rate of $13.283 per $1,000 of assessed value, a small adjustment from the current 13.181 rate. Council members were told the total property levy is projected at $65,325,125 and that the levy sits $1,476,556 below the statutory cap. The presentation noted the Northeast region inflation rate at about 3.1% (April 2025) and that total revenues and expenditures are balanced in the provisional plan.

Why it matters: the budget covers town operations, school funding and enterprise funds that drive services residents rely on. The proposal sets the town and school combined spending plan and tax rate that affect households and municipal services if the council adopts the budget on June 23.

Key provisions and figures presented: - Provisional total expenditures (general fund): $76,940,969. - Property tax rate presented: $13.283 per $1,000 assessed value (change from 13.181). - Total property levy: $65,325,125 (projected and $1,476,556 below the cap). - Provisional general government budget: $6,740,622. - Provisional public safety budget (police, fire, emergency management): $17,410,556. - Provisional public works budget (roads, snow removal, Prudence Island transfer station): $4,850,135. - Provisional school local appropriation: $39,407,902; total school budget (restricted and unrestricted): $48,232,127. - Provisional capital projects and expenditures: $655,860; capital improvement plan start page listed in budget book. - Provisional debt service: $2,830,843 (town and school breakout available in budget book).

The presentation also reviewed enterprise funds, including the Lehi Farm Equestrian Center (projected revenue provisionally approved at $19,422), the Headley Street transfer station ($920,788), the new curbside waste collection enterprise ($1,838,338), and remaining activity on previously closed programs such as the Portsmouth septic loan program. The Arthur Daniel Howell House (also referred to in meeting remarks as the Phelps House) was listed with a base fee and credit of $31,230 under the concessionaire agreement.

Public commenters praised the budget’s readability and modest tax increase. Resident Larry Fitzmorris said, “This is the most readable budget I’ve seen,” and praised the council for keeping the tax increase low. A speaker at the meeting cautioned that an expected increase in state aid—potentially about $100,000 to schools and roughly $48,000 tied to a motor vehicle excise phase-out escalator—remains uncertain until the state budget clears both chambers and is signed by the governor.

The council closed the hearing on June 11 with a motion to end the public hearing; that motion passed 7–2. Council members left final changes, including any state-driven revenue adjustments and consideration of additional presentations (for example, the Rhode Island League of Cities and Towns), for the June 23 final adoption meeting.

Looking ahead: the council will reconvene June 23 for final budget adoption. Staff told the council they will present any changes that arise from the state budget process and will provide the detailed budget book pages and the capital improvement plan for members and the public to review.