Minutes 03/23/2026 - Laserfiche WebLink

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March 23, 2026 challenges to the city’s finances. It is imperative that in our decision-making process, we ensure the long-range viability of the plan so that all retirees continue to receive the promised benefits and the system remains solvent. As of the most recent valuation, June 30, 2025, the combined net pension liability for the city’s legacy pension plans was $63.8 million. As of June 2025, the “funded status” of the legacy systems is 75.4%. The city’s Other Post-employment Benefits (OPEB) liability of its Retired Employees Health Care Program has declined substantially in recent years. In 2018, the city established an OPEB Trust Fund. The FY 2027 budget includes a $1.5 million contribution. Since the establishment of the trust, the city has contributed an additional $8.5 million. City staff and advisors recommend formalizing a policy to build upon this funding strategy until there is no unfunded liability. Citizen Engagement and Budget Adoption Process Public participation is an essential component of the budget development process. Citizens are encouraged to review the Proposed Budget and provide input through public hearings to be held during regular City Council Meetings on:  Tuesday, April 14, 2026, at 7:00 PM  Tuesday, April 28, 2026, at 7:00 PM  Tuesday, May 12, 2026 at 7:00 PM (only on certain Rates and Fees) In addition to the Public Hearings, staff will present on various topics during Public Work Sessions, held before regular City Council meetings (topics subject to change):  Support to Civic Organizations and Revenue Overview: March 24, 2026 at 5:00 PM  Rates and Fee Changes and New Initiatives: April 14, 2026 at 5:00 PM  Capital Program and Debt Management: April 28, 2026 at 5:00 PM  Final Budget Overview: May 12, 2026 at 5:00 PM Budget ordinances will be presented for adoption on Tuesday, May 12, 2026. The complete budget document is available for review at all Portsmouth Public Library locations, the City Clerk’s Office, and on the city's website at www.portsmouthva.gov. Conclusion The FY 2027 Proposed Budget meticulously balances fiscal discipline with a robust commitment to Portsmouth’s growth, ensuring every dollar aligns with the City Council’s Strategic Pillars. By prioritizing critical investments in public safety, infrastructure, and technology, we are directly enhancing service delivery through projects like the City Hall Relocation project, New Cradock Fire Station, the Public Safety technology expansion, the Gateway Revitalization and Right of Way Maintenance initiatives. While this plan includes modest revenue adjustments to meet rising operational costs, these funds are tied to tangible daily improvements. Ultimately, this budget serves as a transparent, data-driven roadmap that secures a vibrant, inclusive, and modern future for all Portsmouth residents.