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EDA hears second-quarter finances; board cautioned on FY27 cash burn
Summary
Staff reported a March 31 net position of $20.0M (down $416,000 year-over-year), $5.7M in cash and $13.7M in properties held for sale; commissioners raised concerns about FY27 revenue assumptions and a projected cash drawdown without new property sales.
The Portsmouth Economic Development Authority reviewed second-quarter finances and a proposed FY27 budget at its April 21 meeting.
Finance presenter Stephanie Counsel reported the period ending March 31 showed approximately $5.7 million in cash, $7.5 million in accounts receivable, $1.2 million in hotel land, $13.7 million in property held for sale and $743,000 in liabilities; the EDA’s net position was reported as $20.0 million, a $416,000 decrease from the prior year. Operational revenue produced a $401,000 surplus this period, operational expenses were about $202,000, and grants paid out were approximately $88,000.
Commissioner Saunders Smith presented the FY27 budget framework and described it as 'sobering,' noting zero projected revenue from land sales because there are no properties currently under contract and referencing a $550,000 host grant (50% reimbursement) and reduced business-loan funding compared with the prior year. Board members asked about anticipated property sales and staff said no sales are programmed for FY27 because many assets remain in demolition/clearance and are not ready for market.
One board member estimated recently identified additional expenses (~$1.3 million not yet recorded) and, together with budgeted expenditures of roughly $1.2 million, suggested the EDA could end FY27 with about $3.2 million in cash if no new revenues materialize. Commissioners discussed placeholders for land acquisition in the budget and the need to size up repair costs for buildings before negotiating purchase prices.
Staff committed to providing supporting documentation for the amounts owed to the city and to continue exploring revenue avenues, including grants, private-sector participation and eventual property marketing as renovations complete.
