Portsmouth council provisionally approves most FY26 budgets, withholds League dues and moves $600,000 to pension fund

The Portsmouth Town Council on April 30 provisionally approved the bulk of the town's fiscal year 2026 department budgets while voting to withhold payment of its membership dues to the Rhode Island League of Cities and Towns pending a presentation from the league and approving a $600,000 transfer from the town fund balance into the town pension fund.

The budget work session covered more than a dozen department budgets and several special items. Councilors provisionally approved the Town Council budget, the town administrator's budget, the town clerk's budget, the canvassing office budget (with an amendment to board stipends), finance, human resources, legal services, information technology, tax, planning, recreation, economic development, capital improvement projects and enterprise funds. Several votes were unanimous; a handful were divisive and produced recorded dissent.

Why it matters: provisional approval moves each department's spending plans into the next phase of the town's budget process, sets the amounts that will be published for public review and establishes which questions the council will revisit before final adoption. The council also used the meeting to press a municipal membership organization for answers about its legislative priorities and to accelerate pension funding by shifting $600,000 from the town's fund balance into the defined‑benefit pension plan.

Key votes and outcomes - Town Council budget: The council provisionally approved the FY26 Town Council budget at $18,198 (a stated increase of 59.41% over the prior year), a change driven by a realignment of councilor stipends. The motion passed 6–1; Councilor Mary McDowell cast the lone no vote. The approved stipend line totals $15,000; operating costs of about $2,050 support recurring community contributions such as post‑prom and the Portsmouth Education Foundation. Councilor McDowell moved unsuccessfully to limit the increase to 4%, arguing the larger percentage “does not look good.”

- Rhode Island League of Cities and Towns dues: After an extended public comment period and council debate about the league's recent legislative priorities and transparency, the council voted 5–2 to withhold payment of the town's dues (about $8,600) until the league's executive director and chair appear before the council and explain how dues are being used. Several residents urged removing the town from the league after a resolution the league circulated was later reported to include support for proposals perceived to weaken the state's 4% local tax cap; the council did not remove the membership but conditioned payment on an in‑person briefing.

- Canvassing (elections) budget and stipends: The canvassing budget was provisionally approved with an amendment to alter board stipends and the furniture line. The council approved a revised canvassing bottom line of $314,091 after trimming $1,400 from the furniture request and funding alternates; that motion carried 4–3. The change funds smaller, bipartisan stipends for election alternates while holding the chair and member stipends at current levels.

- Planning budget and transfer to IT: The council provisionally approved the Planning Department budget at $561,840 (6–1, Councilor McDowell opposed). During debate the council removed a $10,000 placeholder for a now‑grant‑funded Aquidneck Island resilience coordinator and redirected those funds to the IT budget for additional software and licensing; the IT budget was adjusted and approved at $414,404.

- Pension/OPEB funding: After lengthy debate about the town's fund balance and long‑term liabilities, the council voted 4–3 to transfer $600,000 from the town's fund balance into the defined‑benefit pension fund and to remove $257,163 previously budgeted under the “other expenditures” line (the council recorded three dissenting votes from Hamilton, Blank and Payero). Supporters said shifting the funds accelerates pension funding and benefits from longer‑term investment; opponents warned about drawing down the fund balance and urged using the planned multi‑year contribution schedule and expected surplus instead.

- Other provisional approvals: The town administrator's budget ($376,161), the town clerk ($541,530), finance ($1,124,668), human resources ($2,085,141), legal services ($260,500), information technology (adjusted to $414,404), tax ($601,793), recreation ($412,845), Melville Park ($18,000), economic development ($52,286), the capital improvement plan ($655,860), debt service ($2,830,843), and enterprise fund appropriations (Glen Farm Equestrian Center $19,422; Arthur Daniel Howell/Phelps House $31,230) all received provisional approval during the session. Most of these votes were unanimous; votes with recorded opposition are noted above.

Debate highlights and clarifications - Councilor stipends: Councilors and members of the public repeatedly noted the large percentage increase in the council's small stipend line but also emphasized the increase comes from a historically low base and finances officials said the dollar effect on the full municipal budget is negligible. The approved stipend package sets the council total at $15,000 while keeping the overall Town Council FY26 appropriation at $18,198.

- League of Cities and Towns: Residents and councilors criticized the league after a legislative agenda was circulated that some said included support for changes to the state tax cap and other items not clearly disclosed in the resolution the league asked towns to endorse. Resident Tom Grama told the council: “Please vote to strike this membership from the town’s fiscal year 26 budget.” Council leadership instead proposed and the body approved withholding the check until league leadership comes to explain the organization’s work for Portsmouth.

- Planning staff retention: The Planning Department budget includes a market adjustment for the town planner (presented as a roughly 7% increase) to retain an experienced planner whom staff said is being actively recruited by other communities. The raise drew express opposition from Councilor McDowell on equity grounds; other councilors defended the increase as a retention action that avoids higher future recruitment costs.

- Elections readiness and special elections: The canvassing director explained FY26 planning assumes a single potential special election and includes funds to combine precincts, to fund training and to comply with state certification requirements. Staff noted that costs spike in presidential election cycles and that budgeted contingency would be held in a restricted account if not used.

What the council directed next - Staff were asked to return a revised, consolidated budget reflecting the many votes and adjustments. The council agreed to consider a clean, updated provisional budget at the May 12 meeting and to post the formal public notice and hold the public budget hearing on June 11. Final approval of the budget is scheduled for the June 23 meeting.

Quotes (selected) - “I just don't think it looks good so I would like to make a motion that we change that to a 4%,” Councilor Mary McDowell said during the stipend debate.

- “We can leave the money in the budget. We can hold payment until they come down and explain exactly how they're gonna help the town of Portsmouth,” President Rayner said while proposing the compromise on the League dues.

- “Please vote to strike this membership from the town's fiscal year 26 budget,” resident Tom Grama told the council during public comment about the league.

Ending The council left most budgets at provisional approval while asking staff to reissue a consolidated version of the FY26 package reflecting the night's edits. The council set May 12 for further review and the statutory public budget hearing for June 11; final adoption remains scheduled for the June 23 meeting. Until the league presentation occurs, the council will not issue its dues payment to the Rhode Island League of Cities and Towns.