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March 24, 2025
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<br />The FY 2026 Proposed Budget includes $338,023,033 in total revenue, representing a
<br />3.4% increase from the FY 2025 Adopted Budget. This increase reflects modest growth
<br />in our local economy and strategic adjustments to our revenue structure.
<br />
<br />Local revenues constitute $244,478,630 of the total budget, a 3.9% increase over FY
<br />2025. Key revenue sources include:
<br />
<br />FY 24 FY 26
<br />Revenue Category FY 25 Adopted % Change
<br />Actual Proposed
<br />LOCAL REVENUES $ 232,984,615 $ 235,288,729 $ 244,478,630 3.9%
<br />Real Property $ 125,883,886 $ 130,463,320 $ 136,401,413 4.6%
<br />Personal Property $ 37,789,008 $ 36,900,567 $ 37,638,578 2.0%
<br />Other General Property $ 4,666,384 $ 4,533,817 $ 4,760,508 5.0%
<br />Other Local Taxes $ 43,162,451 $ 44,345,488 $ 45,829,472 3.3%
<br />Utility Taxes $ 14,874,270 $ 13,171,572 $ 13,444,915 2.1%
<br />Charges for Services $ 4,999,512 $ 4,346,820 $ 4,795,073 10.3%
<br />Fines and Forfeiture $ 484,846 $ 228,000 $ 272,900 19.7%
<br />Licenses and Permits $ 1,124,258 $ 1,299,145 $ 1,335,771 2.8%
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<br />To support necessary service improvements and infrastructure investments, the following
<br />rate adjustments are proposed:
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<br /> Real Estate Tax rate will increase by $0.01 per $100 of assessed value to $1.24
<br />
<br /> Water and sewer rates will increase by 5% to fund system maintenance and
<br />customer service improvements
<br />
<br /> Stormwater fees will increase by $2.00 to enhance maintenance and fund
<br />additional infrastructure
<br />
<br /> EMS fees will be adjusted to better align with service delivery costs
<br />
<br /> Summer Rays program fees will be reinstated, with scholarships available to
<br />ensure access for all families
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<br />Expenditure Summary
<br />
<br />The FY 2026 Proposed Budget allocates resources to address community priorities while
<br />maintaining essential services. Major expenditure categories include:
<br />
<br />FY 24 FY 26
<br />Expenditure Category FY 25 Adopted % Change
<br />Actual Proposed
<br />Expenditures $ 306,829,901 $ 326,971,215 $ 338,023,033 3.4%
<br />Personnel $ 114,525,795 $ 119,060,759 $ 120,890,745 1.5%
<br />Other Operating $ 20,049,399 $ 24,377,203 $ 24,310,518 -0.3%
<br />Contractual $ 22,989,256 $ 26,383,774 $ 30,046,059 13.9%
<br />Internal Services $ 18,908,162 $ 20,498,401 $ 22,501,073 9.8%
<br />Other Non-Dept $ 7,633,053 $ 7,095,518 $ 8,380,518 18.1%
<br />Schools Contribution $ 63,671,284 $ 75,642,160 $ 81,378,325 7.6%
<br />
<br />Council Priority Contingency $ 3,104,586
<br />Transfers and Contingencies $ 7,154,713 $ 7,913,676 $ 6,869,462 -13.2%
<br />Debt Service $ 37,898,239 $ 37,895,138 $ 36,146,333 -4.6%
<br />Capital Improvements $ 14,000,000 $ 5,000,000 $ 7,500,000 50.0%
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<br />Debt Management
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<br />Debt Policy Metrics Analysis
<br />
<br />The city of Portsmouth has three debt policies and complies with all three. Please see
<br />below for a review of the three policies and the city’s compliance status with all three.
<br />
<br />1. Debt to Assessed Valu Ratio less than 4%
<br />FINDING: Compliant at 3.8%
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