City Council Adopts Budget for FY25

June 7, 2024

The City Council unanimously approved the FY25 budget submitted by City Manager Karen S. Conard. This budget, totaling $144,861,347, reflects a net increase of $6,237,972 or 4.5%, which meets the directive provided by the City Council.

The FY25 Budget results in an estimated tax rate of $16.85, which represents an increase of $0.72 or 4.45% over FY24. This compares to an increase of $0.93 or 6.12% in FY24 over FY23. The estimated tax rate would result in an annual increase of $347.04, or $28.92 per month, for the median single family residential home valued at $482,000. The final tax rate is set by the New Hampshire Department of Revenue Administration (NHDRA) in the fall, once all State revenues, property valuation, and county tax obligations are finalized.

The FY25 Operating Budget, which represents 82% of the total budget, is $118,554,293. This reflects an increase of $5,988,681 or 5.32% over FY24. The Operating Budget finances the services provided by the General Government, Fire, Police, and School Departments as well as General Fund obligations for the Indoor Pool, Prescott Park, and Community Campus. 

The FY25 Non-Operating Budget is $26,307,054. This represents an increase of $249,291 or 0.96% over FY24. Approximately 64.3% includes the continued investment in the City’s program and infrastructure needs, as identified in the Capital Improvement Plan through Debt Service, Capital Outlay, and IT Equipment Replacement. The remaining 35.7% includes Rockingham County Tax, Property & Liability, the interest portion of overlay, and Rolling Stock. 

To lessen the impact on taxpayers, the FY25 Budget reflects the continued distribution of $2,500,000 from parking-related revenues to the General Fund. Those general government services provided by parking revenues will offset the FY25 Property Tax by $0.95. For the median single-family home valued at $482,000, this equates to a tax offset of $456. 

City Manager Karen S. Conard stated, “On behalf of the staff that worked collaboratively on this effort, I am comfortable moving forward with a budget that supports essential services in a way that residents can appreciate and rely upon.”

The final FY25 budget is posted to the City website.

City Hall Portsmouth NH