The City Manager's FY27 budget proposal at a glance
On May 7, City Manager Karen Conard proposed a $157.97M FY27 budget—a $7.68M (5.11%) increase. She characterized it as "carefully managed."
Of the 5.11% increase: 2.21% is health insurance costs alone; the remaining 2.9% covers everything else—salaries, contracts, and operations.
Note: 5.11% is above the 3–5% range councilors debated earlier this year. Councilor Cook had publicly opposed going as high as 5%.
For a median single-family home valued at $777,200:
Tax rate: $12.07 per $1,000 of value (up 56¢, or 4.88%, over FY26).
Plus: Water bills +4.5%, sewer bills +5.9% (assumes 5 units monthly use).
"The majority of our homeowners have had double-digit increases in their taxes."
"I absolutely do not want to go as high as a 5% increase — that drives people out of their homes."
"It's not a final budget until we have all these conversations that we need to have."
How the budget breaks down — and what's driving the increase
City Manager's proposal released May 7, 2026 • Final vote June 8
Proportions based on FY26 adopted shares; FY27 final allocations subject to Council adjustment.
Most spending is locked by contracts, salaries, and legal obligations. The proposed 9 position cuts come from this constrained pool—which is why even modest staffing reductions are politically and operationally difficult.
Per City Manager Conard's May 7 presentation, the 5.11% increase splits roughly into two parts:
Health insurance is the single largest cost driver. The City has been in an ongoing dispute with SchoolCare (NH School Health Care Coalition) over a disputed mid-year assessment—context that has fed into FY27 cost pressure.
Property tax isn't the only line item going up. Under the proposal, the typical residential customer (5 units of monthly water use) sees:
These follow a new tiered rate structure adopted by City Council and are funded through the Enterprise Fund—separate from the General Fund tax-rate calculation.
Hearings, work sessions, and the path to the June 8 vote
✓ Joint City Council & School Board Work Session
📍 City Hall Council Chambers • ⏰ 6:00 PM — Completed
✓ Fire Commission Budget Hearing
📍 Fire Station 2 • ⏰ 6:00 PM — Completed
✓ School Board Meeting — Budget Hearing #2 & Adoption
📍 City Hall Council Chambers • ⏰ 7:00 PM — Completed
✓ Police Commission Budget Hearing
📍 School Board Conference Room • ⏰ 5:00 PM — Completed
This is when the Council debates department budgets and the public hearing opens. Public comment is welcomed at every session.
General Fund Budget Work Session
📍 City Hall Council Chambers • ⏰ 6:00 PM — General Govt, Police, Fire, School Depts
Enterprise & Special Revenue Funds Work Session
📍 City Hall Council Chambers • ⏰ 6:00 PM — Water/Sewer, Parking, Stormwater
⭐ Budget Public Hearing OPENS
📍 City Hall Council Chambers • ⏰ 7:00 PM — Best opportunity for on-the-record public comment
Budget Review Work Session
📍 City Hall Council Chambers • ⏰ 6:00 PM — Final work session before June vote
City Council Meeting — Public Hearing & Budget Adoption
📍 City Hall Council Chambers • ⏰ 7:00 PM — Anticipated continuation of public hearing and FY27 budget adoption
Four ways to make your voice count before the June 8 vote
You don't need to be an expert. Share your perspective as a resident—that's what councilors need to hear.
Attend a Meeting
Show up to City Council meetings, especially May work sessions. You don't have to speak—councilors notice how many residents care enough to attend.
Speak at Public Comment
You get 3 minutes to address the council. Introduce yourself, explain what matters to you, and ask for specific action.
Email Your Councilors
Can't attend in person? Send an email before budget meetings. Personal stories are more effective than form letters.
Spread the Word
Share this guide with neighbors, post on social media, talk to your community groups. The more residents engaged, the better.
Four things to keep in mind
- The City Manager has proposed a 5.11% increase—Council can still amend before the June 8 vote
- The May 18 public hearing is the formal on-the-record opportunity to comment
- Property tax, water, and sewer all increase under the proposal—add your voice if affordability is your concern
- Even one person speaking up during the public hearing can shift the conversation
Five questions to check what you've learned
Where to dig deeper — official documents, recordings, and contacts
View the preliminary budget presentation and supporting materials from the City of Portsmouth.
View Budget Documents →Can't attend in person? Watch live broadcasts and recorded meetings on the City's official YouTube channel.
Watch on YouTube →Agendas, packets, minutes, and archived materials for all council meetings.
View Archives →Estimate your property tax bill using the city's online calculator.
Calculate Taxes →Can't find what you're looking for? Contact the City Clerk's office.
(603) 610-7245
May 7, 2026 update
Revised after City Manager Karen Conard released the formal FY27 Proposed Budget at a City Hall press conference on May 7. Key changes from the Feb 12 version:
- Replaced preliminary "$10M needed / 3–5% debate" framing with the actual proposed numbers: $157.97M total, +5.11%, +$7.68M.
- Added concrete tax impact for the median home ($777,200): +$435/year, +$36/month; tax rate $12.07 per $1,000 (+4.88%).
- Added water (+4.5%) and sewer (+5.9%) rate increases—not in the prior version.
- Added the ~9 full-time position cuts included in the proposal (city headcount drops to 884).
- Calendar: added the missing May 18 public hearing opening; corrected May 27 (Wed) to May 28 (Thu) for the final work session.
- Updated quiz Q5 (was about debated range; now about actual proposal).
- Noted explicitly: 5.11% exceeds the upper end of the 3–5% range councilors had publicly debated, and exceeds the figure Councilor Cook said she opposed.
Original module released Feb 12, 2026, based on the Jan 14, 2026 Preliminary Budget presentation.
City of Portsmouth FY27 Proposed Budget press conference (May 7, 2026); Seacoastonline / Portsmouth Herald coverage (May 7, 2026); City of Portsmouth press release on FY27 public hearings (Jan 26, 2026); FY26 Adopted Budget; FY27 Preliminary Budget Work Session (Jan 14, 2026); earlier Portsmouth Herald coverage (Feb 2–3, 2026).
Progress Portsmouth · May 7, 2026 (rev. 2)