Water usage rates won't increase in Portsmouth. Why bills will still rise

The Administrative Board for the Portsmouth Water and Fire District approved a $5.95 million operating budget for its 2025 fiscal year that began on May 1. The 2025 fiscal operating budget is 6.12% more than the 2024 fiscal budget. The approved total budget, which includes capital expenditures and principal payments on debt service, is $6.38 million. The total 2025 fiscal budget is 0.82% more than the total 2024 fiscal budget.

There are no increases in water usage rates. There is an increase in the base charge to reflect the current cost of service, including an update to actual meter pricing. The quarterly water rates are $9.04 per thousand for the first 5,000 gallons and $12.74 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 $800.40.

The property tax rate will remain at $0.24 per thousand dollars of assessed value. For a District property assessed at a value of $400,000, the tax bill would be $96.00. Property tax revenue accounts for about 15% 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.

Administrative Board Chairman Philip Driscoll "indicated 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 that 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.

This article originally appeared on The Providence Journal: Portsmouth water district sets FY2025 operating budget