PORTSMOUTH — The Town Council Monday night unanimously approved a $66.66 million provisional budget starting July 1 that calls for a property tax hike of 1.27 percent.
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PORTSMOUTH — The Town Council Monday night unanimously approved a $66.66 million provisional budget starting July 1 that calls for a property tax hike of 1.27 percent.
A public hearing will be held on the budget at 7 p.m. on Wednesday, June 8, at Portsmouth Middle School. The council will officially approve the spending plan at its regular June 13 meeting.
Under the budget, the owners of a $340,000 home in Portsmouth would see their annual tax bill go up by $68, from $5,372 to $5,440. The tax rate would increase by 20 cents, from the current $15.80 to $16.
You can read the entire proposed budget here.
The council Monday approved several small adjustments to Town Administrator Richard Rainer Jr.’s proposed budget as suggested by Finance Director James Lathrop. However, both officials said the modifications did not impact the budget’s bottom line.
The most significant change to the budget was Mr. Lathrop adding $236,000 in debt service for refinanced school bonds that were not originally anticipated.
In addition, he said, property insurance came in at $22,674 more than expected, and there was also an unanticipated hike in workers’ compensation insurance of slightly under $10,000.
On Mr. Lathrop’s suggestion, the council approved covering those costs by taking money from the town’s contingency funds as well as its accumulated surplus.
On a request by resident Larry Fitzmorris, the council also increased the town’s appropriation to the Portsmouth Prevention Coalition by $2,500, for a total of $22,500 for fiscal year 2017. That money lowered the fund balance that will be added to the surplus from $86,545 to $84,045.
Contingency funds questioned
The town has budgeted $300,000 in its contingency account for various projects, including $100,000 to fix the seawall at the newly acquired “Mt. Hope Park” property and $50,000 toward the Prudence Island ferry landing in Bristol.
Resident Judi Staven objected to the town allocating money toward a ferry landing in another town.
“The Town of Bristol needs to repair and fix up their own dock,” she said. “I do not want my tax dollars to pay for another municipality’s dock.”
Mr. Rainer said Bristol could at some point ask the town for funds to improve the dock, so that’s why money was set aside in the contingency account. He and Council President Keith Hamilton also said the dock is used by Portsmouth residents and the town has a responsibility to keep Prudence Island residents safe.
In any event, council member Elizabeth Pedro pointed said, the council still must vote in open session to approve the expenditure of any contingency funds.