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Portsmouth unveils $360.7M proposed FY2027 budget with no tax increase; schools allocation rises to $89.9M
Summary
Budget Director Trey Burke presented Portsmouth's proposed FY2027 operating budget totaling $360.7 million, including a 3% general wage increase, a 5% water/sewer rate increase, and $136M+ in CIP projects such as city hall relocation, a new K-8 school and a combined public safety facility; council discussed casino revenue and retired-employee stipend funding.
Portsmouth presented its proposed fiscal year 2027 operating and capital budget at the April 13 public works session: a $360.7 million general fund budget (a 6.3% increase), no proposed change to local tax rates, and a capital improvement program exceeding $136 million that prioritizes city hall relocation, a new K-8 school, a combined public safety facility and fire station relocations.
Budget Director Trey Burke highlighted core assumptions: a 3% general wage increase for city-funded employees, grade-and-step adjustments, continued funding of long-term pension obligations ($21.1 million) and OPEB trust contributions ($1.5 million), and a 5% water and sewer rate increase to fund system improvements. "There are no increases to tax rates in this budget," Burke said, while noting the schools contribution grows to $89.9 million (an 8.4% increase).
Burke said expected casino-related revenue totals $23 million (about $20 million projected through state disbursement plus $3 million under the development agreement). He and councilmembers discussed where casino revenue is reflected and how it supported prior tax relief and school funding.
Council members pressed for more detail on several items, including neighborhood lists for the Neighborhood Revitalization Initiative, how law-enforcement technology investments (drones, AI detection and long-range radar) will be deployed and evaluated, and the rationale and placement for planned fire-station relocations (including a $14 million allocation for the Kredo station relocation). Staff said some CIP program managers will be contracted (program managers hired under CIP to oversee contractors) and agreed to provide neighborhood-specific project lists and additional technical details on public-safety equipment.
Council also discussed retiree benefits: a $1,400 annual health-care reimbursement stipend (Fund 830) that the council reviews annually. Staff said the stipend is funded in a carryover account and that claims vary year to year; they agreed to provide historical claims trends and further context for any proposed stipend increases.
The council voted to enter a closed session under Virginia law for consultation with counsel on real-property tax classification issues, to discuss the position of city auditor and to consider two appointments to boards and commissions; the closed session was certified by roll call. The public works session adjourned with reminders about a council meeting the following day.
