PORTSMOUTH — The Administrative Board for the Portsmouth Water and Fire District approved a $5.23 million operating budget for its 2023 fiscal year that began on May 1, representing an increase of 6.47 percent over the 2022 spending plan.

The approved total budget, which includes capital expenditures and principal payments on debt service, is $5.57 million, which is 3.91 percent more than the total 2022 fiscal budget. 

There are no increases in water usage rates but there’s an increase in the base charge to reflect the current cost of service, including an update to actual meter pricing, according to the water board.

The quarterly water rates are $8.37 per thousand for the first 5,000 gallons and $11.80 per thousand for all water use over 5,000 gallons in the quarter. The average residential customer that uses 60,000 gallons of water per year would have an annual cost of $710.44.

The tax rate will increase by $0.01 for 2023. The board set the District’s property tax rate at $0.24 per $1,000 of assessed value. For a District property assessed at a value of $400,000, the tax bill would be $96.

Property tax revenue accounts for about 14 percent of the District’s total revenue. The use of its taxing authority allows the District to issue general obligation bonds, which offer a more favorable interest rate than revenue bonds, when funding capital projects. 

Philip Driscoll, who chairs the Administrative Board, said the District is working hard to properly maintain and improve the water system, and to improve efficiency through technology, while providing fair and reasonable rates for customers and taxpayers. 

Driscoll also indicated the Board will continue to ensure that the cost it pays for wholesale water is fair and reasonable by working with Newport Water and intervening in Newport rate filings before the Public Utilities Commission, as necessary.