PORTSMOUTH — Town Administrator Richard Rainer Jr.’s proposed municipal budget for fiscal 2019 beginning July 1 calls for a 3.59 percent increase in the residential property tax rate. 

Under Mr. Rainer’s proposed spending plan, the tax rate would increase from the current $15.42 per $1,000 of assessed valuation to $15.974. A resident owning property assessed at $350,000 would pay about $194 more in taxes next year. (See left column for more examples.)

The motor vehicle tax rate would remain at $22.50.

Mr. Rainer gave a brief overview of the budget at Monday night’s Town Council meeting. The council will begin deliberations Tuesday night, April 24, when it will review spending plans for the schools and the public works, fire and police departments. The meeting begins at 7 p.m. at Town Hall.

The remaining departments, as well as debt service and capital expenses, will be reviewed on Wednesday, April 25. If there are any additional budget items to review, the council will meet again on Thursday, April 26.

The council will adopt a provisional budget on May 14 and hold a public hearing June 13. The budget will be formally adopted on June 25.

The total proposed operating budget for next year is $63,247,183, which represents a spending increase of $1.38 million, or 2.23 percent. The tax levy — the amount to be raised through taxes — is $54,381,575.

Significant drivers

Some significant drivers in the budget, according to Mr. Rainer are:

• $500,000 in debt service on the bond for the new police station being constructed

• $371,000 anticipated loss in state aid

• $150,000 in expenses for the November general election

• $137,000 for the Prudence Island transfer station operations, which was recently moved into the general fund

• $85,000 in legal expenses for a tax case

School budget

The town manager’s budget includes the full town appropriation requested by the School Department: $32,846,238. That represents a 2.49 percent increase over the amount currently paid by taxpayers for schools: $32,048,768.

The requested school appropriation was actually higher when the School Committee adopted the school budget in March, but the district has since found more than $140,000 in savings on anticipated health care premiums, Mr. Rainer said.

The total proposed school operating budget for fiscal 2019 is $38,783,579, a 1.8 percent increase over the current budget of $38,093,534.

The school district anticipates losing more than $370,000 in state aid this year.

In his remarks to the council, Mr. Rainer said the percentage of the budget raised by property taxes is “significantly higher” compared to most other Rhode Island communities. 

“Taxes are the largest source of revenue for the Town of Portsmouth,” Mr. Rainer stated. “Taxes have traditionally accounted for 85 percent of Portsmouth’s revenues. For this budget they account for 87.88 percent.”

Mr. Rainer said his budget continues the town’s “commitment to fiscally conservative principals and initiatives” and maintains a “steady strain approach” to capital improvements and community services while addressing several important initiatives.

“It supports ongoing construction of the new police station, funds acquisition of public safety equipment and vehicles, accounts for prioritized capital improvements, provides funding for road paving, advances the LED street light initiative, begins repayment of the police station construction bond, folds Prudence Island transfer station operations into the tax base, accounts for higher-than-normal retirements by personnel in the defined benefits program, and provides funding required to support the 2018 general election. There are no employee positions proposed in this budget,” Mr. Rainer stated.