Even when compared with only full-service municipalities — those with their own police, fire, public works, and school district — Portsmouth maintains a lower-than-average residential rate.”

Town Administrator Richard Rainer, Jr.

PORTSMOUTH — A homeowner with property assessed at $500,000 would pay an additional $99 in property taxes next year should Town Administrator Richard Rainer Jr’s proposed municipal budget for fiscal year 2026 be adopted as presented.

The Town Council on Monday started poring over the total $77,199,531 spending plan, which represents a 3.76-percent increase over the current budget. Another workshop was held Tuesday, and the review was expected to continue Wednesday and, if necessary, Thursday. A public hearing is scheduled for June 11, with final budget adoption set for June 23.

The full budget proposal can be viewed here.

Under the spending plan, the residential real estate and commercial tax rates would increase from the current $13.181 per $1,000 of assessed valuation to $13.378 — an increase of just under 20 cents. (An earlier version of the budget mistakenly listed the increase as 39.2 cents.)

The tangible tax rate — on personal property owned and used in connection with a business — would be remain unchanged at $15.541.

“The property tax rate increases modestly by 1.49 percent and we remain more than $1 million under the statutory tax cap,” Rainer told the council Monday night. “When compared statewide, Portsmouth’s current  tax rate burden falls below the midpoint while offering full municipal services. Even when compared with only full-service municipalities — those with their own police, fire, public works, and school district — Portsmouth maintains a lower-than-average residential rate.”

Despite the proposed 1.49-percent hike in the tax rate, that remains below the 2.49-percent March inflation rate, Rainer said. “Core inflation is even higher, at 2.8 percent,” he said.

Budget drivers

The biggest budget drivers include personnel (contractural wage increases, benefits and more), capital improvements ($655,000 proposed, with major investments in Glen Manor House and the Department of Public Works), public safety, roads, education (the school department makes up more than 55 percent of total spending), and debt service.

“Only 2.9 percent of the budget is discretionary,” the administrator said. “This highlights how much of our spending is committed to essential services and obligations.”

As for debt service, it’s increased this year primarily due to the new school bond. “Still, it represents only 3.71 percent of the total budget. That’s a manageable portion that represents our long-term commitment to infrastructure. Looking ahead, our debt service obligations begin to decline after fiscal year 2026. This gives us flexibility to plan future investments while maintaining financial stability,” Rainer said.

On Monday night, the council voted unanimously to provisionally approve the $77,199,531 revenue line item of the budget. Changes can still be made to the spending plan before its final adoption. 

School budget reviewed

The main order of business Tuesday was a review of the school department’s budget, which makes up the biggest portion of the overall spending plan. In the end, the council voted unanimously to provisionally approve the requested town appropriation of $39,407,902, as well as a bottom-line figure — which also figures in state aid and federal funding for schools — of $48,232,127.

Christopher DiIuro, the school district’s director of finance and administration, acknowledged the district’s proposed budget represents the highest year-over-year increase (3.4 percent) in the past five years due to the higher cost of benefits, and projected lower state aid and federal funding. (What Portsmouth receives in state aid won’t be determined until the General Assembly passes a state budget in June.)

Still, Superintendent Thomas Kenworthy made a pitch for approval of the school department’s ask, saying it was an investment in the Town of Portsmouth. “Taxpayers of Portsmouth are getting an excellent return on their investment,” said Kenworthy, adding that education dollars have a direct positive correlation to residential property values more than any other municipal department. 

He also touted the school district’s most recent accountability ratings by the R.I. Department of Education. “We are one of only three K-12 districts in Rhode Island with all of our schools rating four stars or higher. Melville School became our first five-star school this fall,” said Kenworthy, who also rattled off other achievements such as the high school being ranked No. 1 in the state under the R.I. Next Generation Science Assessments. PHS is also ranked in the top five of all high schools in U.S. News & World Report rankings, and was awarded gold level status on the College Board’s Advanced Placement Honor Roll, he said.

Emily Skeehan, a member of the School Committee who said she was speaking as a private citizen, urged an even bigger investment in the schools. She said while property values on Aquidneck Island have soared, local governments have been slow to alter property tax revenue, “resulting in diminishing municipal budgets that can’t keep pace with the cost of community services and facilities.”

“Portsmouth is leaving money on the table compared to our peer districts (Barrington and East Greenwich),” Skeehan said while presenting statistics from the R.I. Public Expenditure Council (RIPEC). “Portsmouth needs to increase its local contribution to schools to keep up with the rising cost of education, and ensure local revenue is fairly distributed. If schools are not adequately funded, students may not receive the resources they need to succeed and families will choose communities that prioritize their schools.”

Council President Keith Hamilton questioned some of the numbers Skeehan cited from RIPEC. “I think this town and this council have been very generous. We haven’t really decreased the ask from the School Department at all,” Hamilton said, adding that asking citizens to pay significantly more in taxes to fund education would not go over well. 

“We do have the constraints of a budget and there are roughly 2,200 kids in the school, and there’s roughly 16,000 folks who need to survive as well. We have to balance educating our children without forcing our seniors out of town,” he said.