City proposes $86M budget

PORTSMOUTH — The city's proposed $86.4 million budget would mean no tax increase in the coming year, though the unknown impact of state and county taxes could still raise the tax rate, City Manager John Bohenko announced Friday.

The proposed fiscal year 2012 budget represents a flurry of cuts at all levels of city government, most notably the equivalent of 25.5 full-time jobs.

"The decision to come up with no tax increase required various hard decisions to be made," Bohenko said.

With a handful of city councilors in attendance Friday afternoon, Bohenko revealed his proposed budget, which is a slight increase of $152,390, or .18 percent, over last year.

The total city budget is proposed at $86,456,844.

The budget includes $68.4 million in operation expenses, which decreased by $157,243, or .23 percent, over last year, and $18 million in nonoperating costs, which represents an increase of $309,633, or 1.75 percent, over last year.

Despite the increase in nonoperating costs, Bohenko noted the city achieved the City Council's goal of a producing a flat budget on the operational side, in fact going a step further and reducing costs.

The Police Department came in with a budget that was .94 percent, or $79,737, less than last year, while the Fire Department's budget came in at .21 percent, or $14,265, less than last year.

The Municipal Department came in at .01 percent, or $2,245, less than last year, while the School Department presented the exact same budget as the previous year.

Much like last year, Bohenko stressed that a loss of revenue from the state and an estimated increase in Rockingham County tax obligations — two items out of the city's control — could mean an increase after all.

At the local level, the city saw a continued decline in estimated city revenues from motor vehicle registrations and investment incomes, Bohenko said.

He also said, uncertainty with legislation at the state level in relation to retirement costs could have a major effect on the city budget.

"There is a looming threat of additional cuts at the state level that would downshift substantial costs onto the city and its property taxpayers; these may not be determined until the Legislature completes its work in late June," according to the budget document.

Proposed cuts in the city work force on the municipal side of the budget call for the elimination of one full-time position in the Sewer Division, the Finance Department and Planning Department, and the conversion of one full-time position to part-time in the Legal Department. In Public Works, the proposed budget calls for the elimination of one full-time vacant position and a reduction of one full-time position to part-time.

Five full-time, non-ranking officer positions will go unfunded in the police department and outgoing Fire Inspector Steve Griswold's position will also go unfunded.

On the school side, the budget proposal calls for a reduction of 12 full-time equivalent positions.

With the two previous years budgets included, the total of eliminated positions for the city since Fiscal Year 2010 involves nearly 64 jobs.

Bohenko said that means the city has cut 9 percent of its workforce since fiscal year 2010.

Mayor Tom Ferrini said the cuts in the budget were made with much thought.

"These positions we've eliminated are real people with mortgages and families and houses," Ferrini said, noting the city did all it could to avoid affecting people's livelihoods.

Ferrini said he is concerned residents of Portsmouth will have to cope with major consequences of a flat budget, such as the potential closure of Fire Station 3.

A public hearing on the proposed budget will take place at 7 p.m. on Monday, April 11, at Portsmouth High School. The city will finalize its budget in June and the tax rate will be set in October.

The entire city budget is also now available for viewing by the public at www.cityofportsmouth.com. Copies are also available at the library.