Portsmouth manager reduces budget increases. 27 new jobs, raises for police, fire remain

POTSMOUTH — City Manager Karen Conard shared about $1.4 million in suggested reductions to the city’s proposed fiscal year 2023 budget with city councilors on Thursday.

“We understood the desire for some further reductions,” Conard said.

If approved as now proposed by Conard, the budget would be $131,774,911, as compared to this year’s budget of $126,425,033. That represents an increase of about $5.3 million or 4.3%, Conard told the council.

If approved by the council as now proposed, the budget would lead to a tax rate increase of 27 cents per $1,000 of property valuation or 1.78%, Conard said. That new rate would be $15.30 per $1,000.

The owner of a median assessed value home of $478,050 in Portsmouth would see their tax bill increase by a total of $189 for the year or $15.82 per month, Conard said.

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She initially proposed a FY 2023 budget of $133.2 million, but reduced it after several city councilors suggested the amount of the increase should be reduced.

The initial budget included 27 new full-time equivalent positions. Conard's new proposal cut $1.4 million from the first proposal, but retained all the new positions.

The proposed reductions do, however, include changing when the new employees would be hired or how they’re going to be paid.

For example, Conard stated that $28,517 could be saved by hiring a communication and digital services specialist for her office halfway through the year.

An additional $46,563 could be saved by hiring a new health inspector at the half year mark, and $81,328 could be saved by hiring two new patrol officers halfway through the year, she said.

Other personnel savings came from leaving a library aid position in the school department at part time, which saved $16,172, Conard said.

She also shifted two Portsmouth Middle School positions, a guidance position and a math tutor, from the city budget to Elementary and Secondary School Emergency Relief (ESSER) funds.

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These changes reduced the proposed increase in the city budget by $95,830 and $43,893 respectively, Conard said.

The proposed budget still includes a 4% salary increase for “police and fire personnel to address what is currently a competitive disadvantage,” as Conard said previously.

The City Council is expected to vote to approve the budget at its Monday night meeting.

Council reacts to Conard's new proposed budget

City Councilor Kate Cook credited Conard at Thursday’s meeting “for working so hard to get us these revisions and the finance department for the same.”

“I know it’s not easy to look at a budget and find out where you can cut things potentially,” Cook said.

She later asked about the impact of bringing people in at the half-year mark.

Judie Belanger, the city’s director of finance and administration, replied that during the following year of their hiring, “you’re basically compounding” the impact to the budget.

City Councilor Vince Lombardi said he had previously suggested a $1 million to $2 million reduction in the budget.

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But he added that “I think you’ve done a good job approaching that.”

“In looking at the overall budget, it does increase and I think frankly it’s appropriate to have an increase,” he said. “I personally can live with this budget.”

City Councilor John Tabor, who also suggested budget reductions, asked what a $2 million cut would look like.

“I think the short answer is there would be an impact on services and our existing personnel,” Conard replied. “We felt that the $1.4 that we put forth stops just short of impacting services and existing personnel."

Former councilor speaks up, too

During the public comment portion of the meeting, Peter Whelan, a former city councilor, said the number of full-time city employees has grown from 775 in 2010 to what would be about 901 in fiscal year 2023.

“That’s a pretty substantial increase in numbers of full-time employees. As you know, head count is what drives expenses, and it really drives the budget,” he said.

He also noted that he has not heard “from any residents that we’re lacking services here in Portsmouth, that our garbage isn’t being picked up, that our roads aren’t’ being plowed properly.”

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“This town and the employees here provide excellent services, so why are we adding 27 employees, what’s going on here, what’s driving that?” Whalen said.

He also referenced the “state of the economy” and said “this town just came through COVID and we didn’t lay off any city employees.”

Whelan pointed to “the 10,000-pound gorilla in the room,” which he said was Conard’s decision to give all police and fire a 4% pay increase.

“What you’ve got to think about is over the years that 4% raise out of the standard union contract is going to get compounded year after year after year and then you have retirements after that,” he said.

This article originally appeared on Portsmouth Herald: Portsmouth NH reduced budget retains 27 new jobs, police, fire raises