PORTSMOUTH — The Town Council has approved a $61.86 million provisional budget for fiscal year 2017-18 that calls for a decrease in the tax rate of 3.6 percent, from the current $16 to $15.42.

The rate deduction is partly due to the recent town-wide revaluation. Under the proposed spending plan, owners of a $350,000 home in Portsmouth would see their annual tax bill go down by $203, from $5,600 to $5,397. 

That drop will be offset, however, by the higher property values for some residents as set in the recent revaluation, which increased values values in Portsmouth by an average of 8 percent.

The tax levy — what taxpayers are responsible for minus state and federal aid — is $52.63 million.

The provisional budget, which the council approved in a 4-1 vote Wednesday night following several nights of workshops, can be found on the town’s website.

Taxpayers will have their say on the spending package at a public hearing on Wednesday, June 14, at 7 p.m. at Town Hall. The council will formally adopt a final budget on June 26.

The budget includes an appropriation from the town of about $32.05 million for the School Department, approximately $450,000 (1.42 percent) more than the current figure of $31.6 million. State aid for schools came in at $4.48 million, down 5.3 percent from last year.

Nearly 60 percent of tax dollars goes to the school district.

Idea for contingency fund

The only council member to vote against the provisional budget was David Gleason (members Elizabeth Pedro and Kevin Aguiar did not attend the workshop).

Mr. Gleason said although he’s always been supportive of the School Department’s budget requests in the past, he believed this year’s increase of $450,000 could be smaller in light of the fact that the district has run a surplus for several years.

“I would like to see a smaller number,” Mr. Gleason said. “I’ve never asked for you that before. It just seems like we have extra money at the end of the year.”

He said he would rather see the council approve a lesser amount for the schools, but keep some money aside in case the district needed it. (Under the law, school surplus money cannot be returned to the town’s general fund.)

Council President Keith Hamilton said that sounded like Mr. Gleason was advocating a new line item in the budget for a school contingency fund. Mr. Hamilton called that an intriguing idea which would give the council more control over spending.

School Superintendent Ana Riley replied that the district has been requesting modest budget increases over the last five years — averaging about 1.9 percent more annually. 

“We don’t ask for more money than we need,” Ms. Riley said. “(Surpluses) are not planned for. They happen because of unforeseen circumstances and good fiscal management.”

For example, the district realized savings in employee health care last year, and before that spent less on heating due to new, more-efficient boilers in the schools combined with a mild winter, she said.

“We’ve used that (surplus) money responsibly,” said Ms. Riley, noting that some of those funds went toward the aforementioned new boilers, which were badly needed.

Mr. Hamilton and Mr. Gleason stressed they weren’t being accusatory, but that the idea of a contingency fund is worth exploring next year.

“The numbers just keep increasing every year. I’m just looking for an alternative,” said Mr. Gleason.