Unsustainable Tax Burden

The financial landscape in Portsmouth has undergone a notable transformation, with spending levels rising sharply from 2019, when expenditures were around 119 million dollars, to an expected 150 million dollars by 2025. This represents a significant 26% increase, raising concerns about fiscal responsibility and the sustainability of such growth. A key factor contributing to this rise in spending has been the addition of 33 new hires across various city government departments. In 2023, the council, alongside the City Manager, implemented a 4% salary increase for every Portsmouth City employee, in addition to any contractual obligations or merit increases. This decision has significantly increased the city's fixed costs for many years, even into the retirement of city employees, impacting city taxpayers considerably. While the intention behind these hires and this 4% raise may be to enhance city services and improve efficiency, the budgetary implications have been substantial to the taxpayers.

Moreover, Portsmouth recently underwent a statistical revaluation of properties, a process that has significantly impacted residential taxpayers. This revaluation has resulted in a substantial shift in the tax burden, moving it from commercial properties to residential ones. As a consequence, many neighborhoods have experienced double-digit increases in their tax bills, creating additional financial strain for homeowners and residents alike. This shift in taxation raises important questions about equity and the long-term implications for the community, as residents grapple with the increased cost of living in the city.

The current city council has made efforts to look after the interests of Portsmouth taxpayers; however, the prevailing circumstances indicate that a reevaluation of strategies is necessary to ensure fiscal health and community welfare. The rising expenditures coupled with the increased tax burden on residents highlight an urgent need for change in the city’s financial management practices.

In light of these challenges, I will be recommending a hiring freeze across all departments, with the exception of essential services such as police and fire departments, which are critical for maintaining public safety. This freeze aims to stabilize the budget and redirect financial resources towards more pressing needs within the community. Additionally, I propose the establishment of a residents' budget committee from day one in office. This committee will play a vital role in fostering transparency and accountability in the budgeting process, as well as making informed recommendations aimed at improving efficiency and reducing unnecessary expenditures. By involving residents in the decision-making process, we can ensure that the budget reflects the priorities and needs of the community, ultimately leading to a more sustainable and equitable financial future for Portsmouth.

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