Portsmouth City Manager Unveils FY27 Proposed Budget, Public Hearings Ahead

PORTSMOUTH, NH — The city has released its proposed fiscal year 2027 budget, a $157,971,390 plan that city officials say would maintain current services while increasing the estimated tax rate.

The budget for all appropriated city funds was distributed to the City Council on May 1, 2026, and posted on the city website.

Subscribe

The proposed operating and non-operating budget totals $157,971,390, a net increase of $7,676,450, or 5.11 percent, over FY26. According to the budget summary, the proposal allocates limited resources, maintains current services, meets federal and State mandates, and protects the city’s financial position while reducing total headcount by more than nine full-time equivalent positions.

The city identified health insurance as the largest single driver of the increase. Citywide health insurance rose $3.3 million, or 21.4 percent. The School Department’s increase through SchoolCare was 26.2 percent, while General Government, Fire, and Police increases through HealthTrust were 11.4 percent.

As presented, the budget would result in an estimated tax rate of $12.07 per $1,000 of valuation, an increase of $0.56, or 4.88 percent, over FY26. For the median single-family home valued at $777,200, that would mean an annual increase of $435.24, or $36.27 per month. The city noted that the final tax rate is set by the New Hampshire Department of Revenue Administration in the fall after State revenues, property valuations, and county tax obligations are finalized.

The FY27 operating budget totals $130,189,240, or 82 percent of the total budget, up $6,897,842, or 5.59 percent, from FY26. It funds General Government, Police, Fire, and School Department services, as well as General Fund obligations for the Indoor Pool, Prescott Park, and Community Campus. The proposed non-operating budget is $27,782,150, up $778,608, or 2.88 percent.

“This proposed budget protects the essential services our residents rely on every day while recognizing the real economic pressures facing households and local government alike,” City Manager Karen Conrad said. “I am proud of our staff for finding efficiencies, controlling costs where we can, and continuing to deliver high-quality service with a smaller overall headcount.”

The proposal also outlines higher utility costs. The average residential monthly water bill would increase 4.5 percent, or $0.29 per unit, based on 5 units of consumption. The average residential monthly sewer bill would increase 5.9 percent, or $1.07 per unit, also based on 5 units.

The budget process now moves to public meetings. A City Council work session on the General Fund is scheduled for 6 p.m. on Monday, May 11, followed by a May 13 work session on enterprise and special revenue funds. Public hearings begin May 18 at 7 p.m. and continue June 8, when the council is also set to consider adopting the budget.