City Council - Regular Meeting

All right, welcome to tonight's work session for  May 13, 2026 on the enterprise and special revenue   funds. Um you will notice uh before I pass it over  to city manager Canard uh the what uh stood the   test of time in terms of uh our water pipes uh  that are pulled out of Congress Street. Amazing   um that those are uh those are here. Um and uh  yeah, pretty impressive. But uh definitely uh   puts a uh you know um a finer point on on what  needs to be replaced and and wanted to make sure   that we got to see that. So with that, um, look  forward to the presentation, the discussion,   and thanks for the work that went into this and  for the work that will go, uh, into this moving   forward from the council questions. City manager.  Thanks, your honor. Tonight before you, we uh, we,   as the mayor nicely summed up, it's enterprise  and special revenue fund night. And I'm trying   to make the screen. There we go. So tonight we  have uh first for those who had not followed   Monday night's work session, this is the budget  timeline where we are in the process. Tonight   is the second of two work sessions. To follow will  be the opening of the public hearing on the budget   in total. This coming Monday at a regular council  meeting. There will be a third budget work session   on Thursday, May 28th, and then a discussion about  the adoption of the budget at the city council   regular meeting on June the 8th. So special fund  um special revenue funds and enterprise funds uh   comprise the following listed on the slide and you  uh will think of water and sewer and parking most   notably but also of note would be under special  revenue fund storm water Prescott Park community   campus the indoor pool and our federal community  development block grant money that we manage. We  

showed this slide before. It's on page 190 in your  big budget book and it outlines staffing changes   overall and in the general fund it's a total of  9.06. Uh in special revenue fund it's an addition   of 1.14 FTEES and in enterprise it's an addition  of 1.6 FTEES for an overall citywide budget   reduction of 6.32. So with that, I'm going to  turn things over to the director of public works,   Peter Rice, to speak more specifically to this.  Uh good evening. Um Peter Rice, director of public   works. Uh the previous slide can be a little  challenging to follow. However, the net result of   these changes is an increase in parking division  uh by.5 FTE and to the water and sewer division   uh of8 each. Uh as previously discussed,  we did did a 3.1 reduction on the highway   division having a net result for the public  works of a reduction of one FTE. Uh this year's   budget reflects a significant effort to improve  operational effic efficiency by integrating the   technical expertise we have available in our other  divisions to leverage resources and complete more   work in house when practicable. These changes are  a continuation of an organizational review that we   started when the former deputy director of public  works Brian Guest left. Uh our current approach   uh is that whenever a position is vacant, we  require the hiring managers to justify filling   that position. We review it uh to see if it  is needed or if we can do work with existing   staff or if we need to to define a different role  for that that FTE. This exercise often results in   organizational realignment uh job title changes or  promotions to better meet the needs of the city.   Uh these changes in this the changes reflect in  this year's budget uh include uh adjustments for  

succession planning, staff retention, uh change in  roles, u adjustment to uh to better align the cost   centers. uh and there was a significant number  of them that were part of a collective bargaining   uh agreement that changed the titles only. The  compensation stayed the same. There was actually   15 of the 30 were zero impact in terms just a  title change and that was just to to bring it   in line with collective bargaining agreement uh  with the supervisory management alliance. Um so   that next slide um I'll briefly give you a high  level view of the water and sewer. Uh Al and Al   Pratt and Eric Feedler will speak to it in more  depth. Uh the uh increase on the water division   this year is about 4.18%. Uh the water division's  budget covers day-to-day operation and and of   treatment and distribution. Uh capital costs,  compliance with federal and state regulations,   and ongoing replacement of aging infrastructures.  Uh as you recall, we're a regional water system.   We provide water to Greenland, Newcastle,  Newington, and portions of Durham, Madbury,   and Rye in addition to Portsmith. Next slide. On  the sewer side, we're seeing a 1 8 1.84% increase   uh for this year over the FY26 budget. Uh similar  to water um the costs uh this budget covers the   cost of operations for to treat and collect  uh the wastewater uh covers the capital costs   uh and the compliance costs associated with  federal and state regul regulations and ongoing   replacement of aging infrastructure. We are also  a regional system for the sewer side uh providing   sewage services to Newcastle and portions of  Greenland and Ry. Next slide. Unlike uh the  

general fund um the water and sewer divisions  have a much smaller portion of their budgets   going towards uh staffing. Uh it's 32% on the  water side and 21 on the sewer side. Next slide.   Um just to refresh everybody's memory relative  to uh enterprise funds there are self-supporting   systems similar to a business um they must have  fees or charges sufficient to cover the costs   uh to provide uh the services that we provide.  Um we use a rate model uh to u to project our our   revenues. Uh and Al will speak to uh the exercise  that you all participated in in updating our rate   model. Uh and we'll speak to that in a little  bit. Uh it's it's important to remember uh that   water and sewer are not supported by general fund  taxes in any way that it's independent from taxes. Uh a number of years ago, council  endorsed a glide path approach   uh to funding the enterprise funds. Uh this  approach has resulted in predictable, stable   um and predictable uh rate increases. this year's  budget reflects an update to that rate model uh   which Al will speak to and I will pass it over to  him now. Thank you. So I'll start with the sort of   core functions of water. They're quite extensive.  Um everything involved from treating, pumping,   monitoring, metering and maintenance of the  water system are required to consistently provide   the high quality water at meets water quality  standards and meets pressures and flows that are   expected from the from our customers. you know,  and there's the day-to-day operations in that,   but there's also the long-term planning aspects  involved, um, which include making sure that   infrastructure is maintained properly and that we  proactively invest in the system to make sure that  

the system and our resources are sustainable for  the long run. Um, responsible u we're responsible   for operating a wide range of infrastructure.  The Bellamy reservoir um is our major source in   Madbury. um two treatment facilities which is the  surface water treatment facility um in Madbury and   the PAS facility at peas. Um we have 10 um gravel  pack water supply wells about 200 miles of water   main four storage tanks transmission domain a  lot of infrastructure that we are maintaining   uh water quality um it's a critical task from  all the way from source water monitoring from   cyanobacteria through the treatment processes  making sure we optimize our treatment um into   the distribution system um ensuring that we're  meeting all requirements there and through the   flushing program as a part of that water quality  management uh water distribution management That   includes our meter replacement program where at  least 800 meters are replaced every year. Uh we   have a cross connection control program where over  2500 backflow devices are tested or inventoried   every year. Um we have a valve exercising program  where critical valves throughout the systems are   operated routinely to ensure they work when they  need to like when we have water main brakes. Um   and we also annually uh do leak detection  audits to minimize for un unaccounted for   water. Um and again the flushing program is an  important part for maintaining the water quality   um and testing hydrants. And fun fact right now  we have 1,036 hydrants on our systems and um they   need to be inspected and flushed twice a year.  And like last winter I was thinking of all the   times with all the snow they need to be shoveled  out every every storm. And there we go. Our crews   were going out there and shovel them out. We  do appreciate customers that take care of their   hydrants in front of their house, but you know,  our crews are out there cleaning around hydrants.   And and a quick shout out to the fire department  that they uh when they have staff available,  

they do as well. That's right. And finally, all of  our outreach. Um we prepare annual water quality   reports. Um that's part of an EPA requirement and  as of next year, that's going to be required to be   put out twice a year. Um we prepare our quarterly  water supply updates and all the information from   those updates we talk about during their safe  water advisory group meetings. Um this past year   we distributed 43 uh free lead testing kits um  and we answered over 100 phone calls with people   concerned about their water quality specifically  related to um the lead notices that we put out.   Um another note on our public outreach. show. This  past year, we had the administrator from the EPA,   Lee Zelden, and the regional administrator, Mark  Sanborn, visit our PAS treatment facility at   Peas. Um, since we are sort of the pioneers of PAS  treatment in New England, um, not something that   we chose, but here we are. Um, next slide, I'll  talk about some of the accomplishments for FY26,   specifically the projects that we've been working  on. Uh, we've been making repairs to the Bellamy   Reservoir Dam. uh crack sealing. This is a a  major asset of ours. So, this continu continued   maintenance very importance to prolong the life  of the dam. Um we've replaced just under two   miles of pipe this year and that just about meets  our goal of replacing 1% of pipe every year since   pipe has a lifespan of between 70 and 100 years.  If we keep up with changing them out 1% a year,   um that helps us keep on track. Uh this year we  replaced water manes on Little Bay Road, Pinehurst   Road, portions of Maplewood, Woodbury, Congress,  Von Mall, and some other areas. Uh PAS treatment.   Just a few weeks ago, our operators assisted in  the replacement of our ion exchange media there.   And I just wanted to make a reminder that the  operations of the PAS facility at PS are paid for  

by the Air Force. We get about a million dollars  from them a year to operate um that facility. The   media alone in this change out was over a half a  million dollars. So it's a very expensive facility   to run. Uh Madbury treatment facility is now 15  years old. Um so work needs to be done there.   This past year our operators pressure washed the  inside of our 275,000galon underground clear well   tank. Um they've also replaced um a number of  pumps, recycle pumps and our finished water   pumps. And these are tasks that our staff have the  expertise and the ability to do. So, we've been   able to save money by having that work done in  house. Uh, Collins, Smith, and Harrison supplies   wells were all cleaned and redeveloped this year.  Uh, we replaced the wells, the well pumps in um,   Smith well and Harrison well to to ensure their  reliable reliability. So, they should be good   for another 10 or 15 years. um Greenland well  PAS treatment facility design is ongoing and   our service line inventory was updated um and  submitted to the dees in accordance with the   regulations for that and we do have a contractor  for painting and repairing our water storage   tanks which I'll talk about again in a minute  our financial um accomplishments are um so we   have been very fortunate to re receive grant and  loans with forgiveness from the state this past   year total Toal amount awarded to us for water in  loans and grants is over 14 million. Um, of that 8   million of that is through grants and forgiveness  which we've been very fortunate to receive.   Most of these funds or all of these funds are  really associated with regulatory requirements,   the PAS and the lead and copper rule requirements.  Um, but I want to note that the sources of this   funding are drying up. Um, we've been notified  by the dees that, you know, the funds that we're   receiving from ARPA, the bipartisan infrastructure  law or the infrastructure investments and job act,  

all those funds have gone away. All those all  those monies are gone. Um, so we can't anticipate   receiving any more of these supplemental funds  from the state. Right now, the SRF fund program   is being funded at a baseline level, um,  which will help with dees programming, and   some of those funds will go into congressionally  directed spending earmarks. So there'll be very   limited money coming down like it has been  in the past five years for us unfortunately.   Um and the final bullet here I'll get into more  about we did conduct conduct the water and sewer   rate study this year and I'll give a summary of  that in a minute. Uh next slide just continuing   a lot of the projects that we've been working  on. Um improvements at the Madbury treatment   facility Madbury one building upgrade. So there's  chemical injection infrastructure there that's   over 20 years old that needs some improvements. We  will be continuing clearing the transmission main   so we can um access that and maintain provide  maintenance activities for that. So the water   storage tanks are scheduled for painting. Um  we have a a contractor that we're working with   right now getting under contract. Uh the schedule  for that will be spinny road tank will be painted   this fall. There'll be a lot of outreach for that  since it's going to be such a visible project. Um,   next spring the New England booster tank will be  painted and then the following fall of next year   the the um Lafayette tank on Constitution will  be painted and repaired. Um, another project,   the Greenland PAS treatment facility is scheduled  to go out to bid this fall for construction next   uh next year, next summer, spring summer. and  the Portsmith and Collinswell PAS treatment   facility will be moving ahead with final design  this summer. So, a lot still going on there. Um,   and this is just a a previous slide. We presented  this last year, too, just to to make sure people   are aware of our demands versus our supply  capacity. And really looking at it, this year  

has been very or the 2025 data is very similar to  the 2024 data as far as our water demands. It was   only about 100,000 gallons a day different. um uh  actually overall so u previous year was around 3.5   million gallons a day um demand for portsmith and  about 700,000 gallons a day for peas so these are   very similar these year to year um sometimes  they're variations associated with irrigation   demands like last year and the year before were  both very dry summers so demands were up a little   bit from previous years but overall we haven't  seen any really unexpected um changes due to   any of the developments. We know there's a lot of  developments going on in town right now and we're   not seeing any kind of increase from that. Then  whenever there are developments that come forward,   um we do have third party um reviews, hydraulic  modeling, making sure that any impacts from those   developments aren't impacting the nearby water  system. And when there are in infrastructure   needs required for those developments, those costs  are are put on the developer to make sure that the   infrastructure is is done as needed to accommodate  that development. Now I would like to shift   uh to the outcomes of the water rate study. Um  I know we've talked about this the at the work   sessions. So this is somewhat of a summary of  that, but I wanted to um try to sum that up a   little bit. So the recommendations were to adopt a  new water and sewer rate structure um designed to   provide additional revenue to the to provide make  sure that there's sufficient re surplus or suff   sufficient reserves in our enterprise funds while  meeting the needs of our operational expenses and   our debt payments. So the biggest outcome from  this study is really a shift from our from so   there's a greater proportion of the revenue coming  from fixed service fees rather than the usage base  

fees. Right now the majority vast majority of our  revenue is coming from fees based on water use.   But there's so much cost that has gone into the  infrastructure that it's important to shift some   of that to a fixed service fee. So that was a big  part of the change here. And that triggered this   um recommendation to split our lower tier, the  tier from 0 to 10 units to two tiers, 0 to five   units to cover that essential water use range  and to make sure those users that are that are   using that limited amount of water aren't being  unfairly burdened by that new service charge,   if that makes sense. Um this study also recommends  adjustments to other fees um such as the capacity   use search charges, wholesale rates and the sewer  search charges. Um these fees were all reviewed by   the rate rate comm fee committee. And finally,  the study did provide us updates to the rate   model and we use the rate model every year when  we're looking at the performance of the funds   and we're we're looking at setting fees for the  following year. Um the next few slides are just   really being clear of what is being recommended  here. This is right from our rate study. Um as we   move forward note the three tiered structure for  water usage rates for the water and sewer rates   and the irrigation rates. Irrigation rates have  also um increased uh this year to better capture   the demands that irrigation really puts on our  system. Uh water and sewer service fees. Uh the   next slide shows, you know, breaks down what  these fixed fees will be for water and sewer   customers. But just to point out for a typical  customer has a 5/8 or or 3/4 inch meter. So   they're at that lower tier. So they'll pay $10.94  a month instead of the previous $950 9 $4.95 per  

month. Um which had been in effect for the past  24 years. So time for an an update there. Um,   also note here the sewer service fee. This is a  new new fee again intended to capture the cost   associated with the infrastructure and our need  for having that readiness and that ability to be   able to serve those customers especially those  customers that may not be here year round yet   the infrastructure is there you know available  for their for their use. Um capacity use search   charges the next slide has also been revised.  So these charges as you know are essentially   buyin fees for new customers into the system.  Uh since customers have been investing in the   water and sewer system through their the payment  of their water and sewer bills over time there's   that value built into the system. So these search  charges are really calculated so any new customers   that come in are paying their fair sh for the  use of that system and really you know buying   into the infrastructure that others have already  invested in. Um this ends up resulting in so for a   average residential customer that uses five units  of water. The next slide please to summarize. Um   so there'll be an adjustment in that lower tier  actually reduction by 91 cents per unit for that   first tier of use um to help uh calibrate for the  for the increased cost fixed cost. So the fixed   service cost will go up $5.99 per month. So this  turns out to be an overall increase of $1728 per   year for an average users or user that uses five  five units of water. Um that equates to one point   $144 per month increase for water. And that's  what I have. And with that I'll turn it over to   Eric Feedler to talk about the sewer side. All  right. Thanks Al. Uh council as a mayor. Um,  

Eric Feedler. I'm the engineering supervisor. So,  I guess we'll jump right into the punch line on   the sewer side. Like Al described, um, we've added  a a lower a fixed uh lower service uh tier as well   as a fixed rate. Um, you know, best practice,  you know, what we're seeing is that between 6   to 8% of of customers have zero or less than one  unit of use throughout the year in many cases,   more in certain months. um and best practices to  really capture, you know, between 15 and 30% of   of revenue from from fixed sources. So adding the  fixed charge allows the city to you know pay for   some of those baseline service infrastructure  costs um that are basically always born even   if there's no usage on that. Um uh the real so  the average customer uses approximately five   units of water and kind of like how Al was  describing it um the tier one was decreased   down about 54 cents but with the base sewer fee  there's an aggregate increase of approximately   $5.34 per month uh and $64 per year increase.  So the the typical user will see approximately   a $95 monthly usage uh service charge for a total  annual charge of approximately $1,144. So this   this is the the financial differences based on  this uh the rate updated rate model. All right,   we'll go to the next slide. Kind of step back into  kind of the sewer core functions um is similar to   the the water side. There's uh there's a lot of  collection, treatment, operations, maintenance,   and regulatory compliance aspects to the sewer  system. We have, you know, approximately 6,700   um sewer connections, 120 miles of sewer lines, 21  pump stations, and three permitted combined sewer   overflow locations. Um after we collect that waste  water, it goes to two treatment facilities. One at   peas and one over at Pierce Island. At those at  those sites, we remove nutrients of things that   would cause uh algo growth or other kind of kind  of like red tide if we didn't treat it. So that   would be BOD, total suspended cells and other  nitrogen compounds. Um similar to AL, it's a  

heavily regulated uh environment. So there's  continuous sampling. There's daily, weekly,   monthly sampling. um continuous lab testing, you  know, there's dozens of lab tests we do on a daily   basis and then monthly and annual reporting to  regulatory agencies. Um you know, the really the   pipes never get shut off. So there's 365 days a  year we are always working. Um we're constantly   doing preventative and corrective maintenance  activities along with facility improvements. We   do preventative inspections. Um and we're always  there for customer service calls, dig safes,   all these other things that make um either  developers or you know repairs and other things   on the private side uh work as well. And then this  is uh the far uh right picture is a snapshot of   our web portal for our cso monitoring. Um it's no  no CSOS for almost a year now. But um that that is   basically we have three permanent CSOS. You can  click on it. You can get either real-time data,   you can get historical data on that. Um but  um you know from a regulatory per perspective   we have NPDS permits. We have a Great Bay total  nitrogen permit and we have a variety of uh either   EPA consent decrees or long-term control plans  associated with our CSO facilities. Um jump to   the next slide. So there's a few accomplishments.  Um we've you can kind of see front and center that   there's a lot of construction downtown and  a lot of our projects are um they're more of   like complete streets. So they're water, sewer,  there's storm water. We're trying to address all   those things in one shot. You'll see in Congress  there's been a lot of disruptions. But, you know,   not only the city is doing the water, sewer,  storm water, but there the gas company's replacing   gas lines. We're undergrounding um electrical  utilities for partnering with Eversource. So,   there's a lot of other things that go on. So,  um you know, so we finished up a bunch of sewer   separations at Union Willard. We've did the new  pump station on Marjgery Street, Union Street.   We did the Maplewood Bridge and that covers, you  know, that includes water manes and other things   that go across it. We're also just kicked off the  uh Peas wastewater treatment plant construction  

process. That's going to be a three-year process,  so it's it takes a while. And we also really   um we're at that concept design phase and there'll  be more public engagement um as part of Mechanic   Street replacement project. Um similar to Al,  we've been we've been very fortunate working   with our uh funding agencies. NHDS has been very  helpful. We've got approximately $37 million of   grant and loans um from the within the past  year from the state. Of that 8.4 million of   that was grant specifically. The rest is low  interest loans and things like a favorable   interest rates for the city. Um and then just a  couple regulatory like wins for us like um so the   city because of our our great performance at our  wastewater plants and our like our skilled staff,   we we discharge about 50% of our permitted  limits for nutrients into the Great Bay. So,   we're well exceeding our permitted requirements,  which is excellent. The state is very happy. And   uh and also, it's just a fun fact. It was my  fun fact is that we actually did we treated   1.75 million gallons per day less at Pierce Island  this year than we did between 2008 and 2012. So,   the plant uh saw approximately 5.2 million gallons  per day on a a daily basis. We only we only   treated 3.46 on an annual day this year. So it's  a huge difference and that's it's the fruit of   all these sewer separation projects. So this these  initiatives of decreasing you know the storm water   getting into the system has really this is real  dramatic changes. So you know projections were   showing increases to to the plants throughout  the um the planning horizon and it's really   not we're not seeing that these projects are  making a big difference. Um and then also so   we're doing a few more of our long-term control  plan consent decree projects right now. you know,   Fleet Street sewer separation. Um, that is, you  know, that's that Congress, that's the Vaughn Mall   and other things like that. We're heavy in the  construction right now. We should hit some of some   more Fleet Street maybe early next year. And we're  still trying to work on the the Maplewood outfall,   but that's uh we're still working with the the  real property side of things. Our rehab contract   one, you've seen us poking around throughout the  city. We've been repairing pipes, leaky pipes,  

and things like that. And actually, we just  got a a consent decree modification from EPA   two days ago. It was actually a Monday night.  We got we got the email and we swapped out our   next phase of sewer rehab. We identified a much  better opportunity on Siri Street. We're seeing   uh about 200 120 to 240,000 gallons per day of  of seawater coming into the pipe there. And so   the EPA agreed with us that we're we're swapping  that project out and we're going to try to get   it constructed in the next month. So get that  before the busy season. And that should be a   dramatic benefit to us. And it's actually a real  cost savings because that project is targeted and   focused. We can do a lining project and it's  a lot cheaper than going for those other the   rehab contract too. It's a probably approximately  a million gallons a million dollars of savings by   doing that project versus the other one and we  get four to five times the benefit. So it's a   it was a big win and our staff helped out. Our  regulatory council helped out. It was it was a   team effort to kind of get this one pushed through  and and the conservation law foundation was very   helpful in kind of agreeing that this was the  right target for the state issue for so um and   then initiative. So, I think Peter mentioned  this earlier. We're continuing to implement,   you know, asset management best practices.  How do we preventatively maintain, inspect,   and make sure we get the longest life out of  our assets, preventive maintenance, we can get   maybe 50% longer asset lifespan. And the cost  that we're seeing from constructing new pipe,   constructing new things, if you can get  a contractor, is is getting dramatically   more expensive than the the typical inflation  rate that people see. Um, you know, to do that,   we have to keep on developing our skilled  staff. We have a lot of professional staff. Um,   and then we emphasize in-house construction  activities. So, we're seeing cost of a third or   less to self-perform the work versus contracting  out. These are a few examples. These are actual   real pictures. Like we got pricing to replace a  roof at one at one pump station for 27 to $28,000.   We replaced four of the roofs roofs we had to do  for the same price. Uh, we replaced the heating   system at the Peas wastewater plant. We had six  units that cost $30,000 a piece. We did it for  

$10,000 all. So, these are real savings when  you have skilled staff and you can develop your   in-house staff. They can do it quickly, they  can do it well, and you don't you're not kind   of beholden to an expensive contractor that gets  to it when they get to it. So, it's it's been a   real win in trying to get our our staff to perform  some of these has been it's been a great thing and   and I think Peter's initiatives to kind of try  to re keep on re-evaluating our organizational   structures to get the most that we have out of  the staff that we do have. So, um, and I think   this goes back to kind of like Al mentioned this,  uh, as well on the water side. So, we we have   treatment capacity of over six million gallons at  Pierce Island and 1.2 over at Peas. We're seeing   dramatic, you know, 33% decrease in annual flow  since 2008 to 2012. So, and uh, similar to what   Al mentioned that anytime there's development in  the city, we have a technical advisory committee   and there's a tax process. So, we review these  developments. We see if there's local uh capacity   restrictions. So if our treatment plants and  our water production facilities have capacity,   if there's a if there's a a conveyance limitation  in the collection system, those the developers   pay or the benefiting parties pay for those  improvements. So it's a big one and in many cases   those pipes that have a capacity limitation for  a developer are actually an old pipe anyways that   would have to be paid for by the rateayers. So  in many cases there are benefits for the existing   rateayers as well. So, but it's an important thing  to to know that it, you know, those developers are   not getting subsidized through these development  processes. And I think that's what I have. Um, so we'll we'll turn our attention to the  special revenue funds which include uh parking   and transportation uh which is uh solely uh  self-supporting uh and actually spins off   2.5 million to the general fund uh storm water  Prescott Park Community Campus and indoor pool  

all have blended sources of funding um in part um  monies from uh general fund which shows up in your   um your fourth budget resolution out of  those annual budget resolutions are all   looked into that area and then the community  development which is solely independent   uh through federal funding. Uh the first one  will be discussed by uh Ben Fletcher our parking   director. Good evening everybody. I hate going  after you guys. Ben the microphone. Thank you.   Appreciate the opportunity to chat about this  this evening. Uh just real quick, did you know   uh 77% of the city's media collections are through  the park mobile app now. So yeah, it's it's quite   extensive. Uh much of that popularity comes  from the fact that uh drivers are given the   opportunity to know that their session's coming to  an end and an opportunity to increase that session   uh in real time. So uh that is the future of uh  of parking meters so to speak. So just briefly   uh uh the division is 100% supported by uh parking  revenues, 95% of transient revenues and 73% of   uh monthly revenues in the garages uh are  from non-resident visitors. Uh for FY27,   an estimated total of 6.86 million, 48.3% of  all estimated parking revenue uh will go to   support services such as uh downtown sweeping and  trash collection. um uh school crossing guards,   uh snow removal, and and many others. Uh this  translates to a property tax savings of about   $512, uh per median value home each year. And  uh one uh very interesting point here uh the   transportation engineering uh led by Eric Eie has  secured a $345,000 grant for bridge replacement  

and grade crossing uh improvements that will go  towards the Kate Street railroad bridge project.   Um looking ahead um we have begun the site  selection process for a third parking facility.   uh quarterly and annual reports uh to city council  and the public uh will enhance our ability to   uh use data informed decision-making going  forward. Uh implementation of the resident access   parking program if so approved will take place  uh early this summer. So that is pretty much it. Good evening. Good evening, mayor, counselors. Uh,   my name is Jamie McCarti. I'm the storm  water operations manager for the city. Um, we're committed to a cleaner Portsmith and the  storm water division protects our waterways and   reduces flood risks through strategic planning,  public education and engagement, and the effective   management of our comprehensive storm water and  combined sewer systems. What this looks like   is um staff uh inspecting over 1500 catch basins  uh in the last year uh cleaning 458 catch basins   uh which removed 88 tons of material. Um, we  also swept 790 mi of streets in the last year,   uh, which resulted in 370 tons of material  being removed by the street sweeping. That's   material that otherwise would be in the catch  basins causing potential flooding issues and   water quality issues. So um along with um up uh  maintaining the infrastructure uh we have a lot  

of regulatory um items that we have to contend  with. So, we have an EPA MS4 permit, a uh we   are involved in the um Great Bay total nitrogen  permit, um which results in quite a bit of water   quality testing that we have to do. Uh over the  course of the 8-year permit, uh we're currently in   eight in year eight of 10. We've completed 329 wet  weather quality uh water quality samples that are   conducted by city staff and summer interns who go  out in the rain uh to collect these samples. And   100% of these water quality samples um are done  inhouse uh by city staff and the interns who we   train on how to perform these uh uh sampling  regimes. Um which initially was estimated to   cost uh $60,000 a year and we have that cost down  to below $10,000 a year because we're utilizing   um the labs uh that we have at the city and  staff performing the analysis. Um, next slide. Uh, so in this next year, some of the storm  water initiatives that we have are, uh,   like I mentioned, we're in year eight of our  MS4 permit. Um, we will continue to comply with   the requirements of that permit and the general  and the Great Bay total nitrogen general permit.   Um, we're going to continue to expand vehicle  telemetry uh to help support the salt reduction   plan um as required by those permits. Uh in the  next year, we are going to be leveraging the open   gov permitting platform to assist in the request  of annual inspection and maintenance reports from   commercial and industrial properties. Um ensuring  the compliance of their storm water operation and  

maintenance plants. Uh, and we're continuing  to work uh with our new groundwater monitoring   wells and hoping to have those linked with  our existing CSO and rain gauge portals. So,   uh, next slide. Um actually yesterday we issued  a request for qualifications uh to bring a   consultant on board to assist the city with  the goal of establishing a more uh sustainable   and equitable funding model for the storm water  infrastructure. Right now the financial burdens   uh split 50/50 between the general fund and  sewer fees. Uh this means that the cost isn't   necessarily aligned with the property's um actual  impact on our system. Um so we'll be looking at   uh at um methods to develop a storm water  utility and enterprise. Um beyond the equity,   there's also a strong regulatory driver for this.  The Great Bay total nitrogen permit requires that   communities investigate and evaluate dedicated  funding sources. Um we were also asked by   uh council a few years ago to look into this.  Um but this RFQ is just the beginning of the   implementation phase. Uh we know that this is  going to require quite a lot of discussion with   city council to fully develop the policy,  define the level of service, and ensure   the structure is right for the community uh  before anything goes forward. That's all. Um, did you know that garden tours are are hosted  every Friday during the summertime for residents   and and and folks visiting? Uh, they they're  great. They're led by our interns as well as our   our horiculturists. So, it's really fun. Uh the  Prescott Park budget goes to uh park maintenance,  

uh dock operations, historic resource stewardship,  uh event permitting and scheduling, tenant license   uh administration, and capital planning  and project uh oversight. Um, as you know,   we're currently working on u project to raise  uh a couple of the historic structures. Uh,   and we will be working collaboratively with  the uh Prescott Parks Arts Art Festival uh   on their new stage uh which we're looking  forward to um seeing that come to fruition. Good evening. Uh Todd Henley, recreation director.  Um, did you know that we had 486 participants in   our after school programs this past school  year? Uh, the community campus truly is one   of Portsouth uh, greatest community gathering  spaces, a vibrant hub where recreation, wellness,   learning, and connection come together for all  ages. The campus offers welcoming spaces and   inclusive opportunities that bring people together  year round. It's more than just a facility.   It's a place where the Portsmith community  stays active, connected, and supported. One   of the most important ways the campus and the  recreation department supports our community is   is by providing affordable quality child care. We  are a leader in childare in the in the city and   the bulk of which takes place at the community  campus. the full-time ACE afterchool program,   which was a huge success in its first year,  and part-time afterchool programs, both with   bus transportation from the schools, plus summer  camps and vacation camps, all take place at the   facility. Another part of our great community is  our group of nonprofit tenants who have multi-year   leases that support the important services they  provide to Portsouth and Secost Area clients.   We also just completed a $2.5 million renovation  on the building, updating almost all office and  

shared spaces, as well as an overhaul of the IT  infrastructure and safety upgrades. Along with   our tenant offices and our rec department  offices, the building hosts many events   and meetings from our community partners. Red  Cross blood drives, Presca Park Arts Festival   and Players Ring rehearsals, Boy Scout and  Girl Scout meetings, youth sports practices,   wellness expos, and adult education classes  are just to name a few. The campus is truly   Portsmith's community center. What we have built  there over the last four years is special, and we   are proud to continue to support that mission  for the city. And next up, I will be speaking   about the Enor. Did you know that the indoor pool  held 256 swim lesson classes teaching more than   1,600 swimmers in FY26? Bringing the community  together is what we do and the indoor pool is   a community in itself. A leader in aquatics on  the sea coast, the pool has various programs and   events that bring the lovers of water together.  The indoor pool programs are one of our most   valuable year-round assets. They combine fitness,  safety, skill building, and socializing. Something   for every age and ability. Our programs create  confidence and help with strength and cardio,   as well as building connections. New programs that  excelled this year were the Piscatico pre-team,   which is helping young swimmers bridge the gap  between swim lessons and competitive swim teams,   senior and adult learn to swim programs, and  a new arthritis foundation aquatics program.   The pool also hosts community special events and  swim team meets as well as committing more open   swim times during school vacation weeks. So even  in the cold of February during school vacation,   you can bring your children to go  splash around with their friends.   Finally, the indoor pool is also an American Red  Cross gold level instruction facility, meaning  

we provide more than 1,000 plus participant swim  lessons each year. And we have multiple lifeguard   and water safety instructor trainings throughout  the year as well. The pool also has staff that   offer first aid, CPR, and B babysitter trainings  for the greater sea coast area. We are proud to be   a life-saving resource for our community. Thank  you. Thank you, Todd. and I will uh round out   the presentation for my colleagues, community  development director Alisa Nuniata, who's on   Zoom to answer any specific questions, but she  manages our federal community development block   grant funds. We've been the beneficiary of close  to a half a million dollars for for years on end,   and she is really creative and flexible in the way  that she can figure out how to spread the dollars   across so many different uh worthy causes. So,  in 26, some of the highlights include an exterior   lift for ADA um accessibility at Connor's Cottage  right across this the driveway. Um the nicest   restroom in the city at Portry Island. If you  haven't been, you have to go. It's wonderful. Uh   the Crossroads House energy efficiency and heating  system upgrades and a PHA property, Betty's dream   roof renovation. And coming up for initiatives  this coming fiscal year would be support for the   construction of Haven's new home on Lafayette  Road. um along with public facility including   and and historically has been used by Crossroads,  Operation Blessing, Portsouth Housing Authority,   Haven and uh even our own senior activity center.  And uh lastly, we support transportation facility   improvements. That is also an eligible use  of CDBG funds. And Elise has identified three   possible bus shelter locations that will serve PHA  properties in the coming year. So thanks to Elise.   So wrapping things up is a reminder of the budget  schedule for folks who would like to attend and   continue to hear updates and provide public input.  And with that, we will close and say thank you.

Thank you again. Um council questions, councelor Taber. Um, it is really heartening to  hear all the progress on the sewer side and I have   to say I was reading the in the budget document  we're forecasting no combined sewer overflows   this year. Well, no cso events where we overflow.  Uh, but the combined sewer system it still exists.   There are relief points still in the system. So,  right. Well, what we're doing is when we do the   next long-term control plan, we kind of look at  the next plan of attack to keep on limiting the   the potential for CSOS. And along the lines of  the big win you had switching to Siri Street from   Yeah. an expensive um dig up the streets project.  Um you know, we're overperforming on nitrogen by a   huge amount. We're big success there. are um we're  doing so well on sewer separation, our volume is   down 33%. Um and so my question is, you know,  could we save the taxpayers some money by really   reopening the the consent agreement and saying,  look at the progress we've made. Maybe there's   some there aren't that many big projects left,  but I think Fleet Street is still left. You know,   do we need to to throw millions more at this when  we've made all this progress? That's already sort   of baked into the process, right? So, when with  these consent decrees, there's a long-term control   plan. Then there's a few other obligations that we  have to look at the sewer model and other things   like that. And then we go back and we we work  with the regulators to see, you know, what are the   needs still to kind of continue to pro protect the  environment and manage the cost to the rateayers  

in the community type thing. So there's there's a  process of reevaluation once the long-term control   plan and that's that's around is 2028 is when  we're looking to kind of open those discussions   back up with the regulators. And and the thing  to remember, counselor, is that there are other   areas of the system that aren't combined that are  aging as well. So there's there's infrastructure   investments that are needed throughout the city  um that you know the the cso has taken the bulk   of the attention uh but we you know we have to  continue to make investments elsewhere. Yeah. Um   but I remember I think you said once Peter we've  got 95% of the separation done but that last 5% is   the most expensive part. Yep. It's like in the the  blowoff curve. You get to that last little bit and   it gets progressively more and more expensive.  But I think we the philosophy that the DPW has   is these combined system these complete streets  where you really have you kind of get as most   value as you can out of those type of things.  And I think real when that long-term control   plan update happens, then there's there's more  discussions where I think the city will definitely   advocate for, you know, managing the costs of  the rateayers while still, you know, meeting   or exceeding those the environmental goals that  we have, you know, as a community, as you know,   as employees. Well, it's a huge turnaround from  where we were when the consent decree was signed. Where would a good place to have some of  that conversation in forward looking? I mean,   when we look at the I think there was a a recent  study that was talking about illgrass and and   former counselor uh Whan had uh wrote a a pretty  good op-ed around uh that in terms of the the   bay yet Portsouth is producing far less than we  would have expected even going back 10 years ago.  

Where can we look and you know given what is said  about the last you know 5% of the work on the on   the combined sewers is there if we are going to  continue you know that pace to continue getting   the last you know little bits of this off is there  going to be it's tough to I guess align that with   a lack of funding uh coming from the feds around  that and even you know uh from the state around   that is that where would the conversation be had  to prepare us for the conversation with the EPA   from a policy direction on this. So, it um our  regulatory support is here today. Um Suzanne   Woodland could speak to it more eloquently than  I can, but we have the MAM municipal alliance for   adaptive management. Um that is a u we participate  with the regulators and um interested parties   group interested parties like conservation law  foundation. And so during those uh discussions,   we have the opportunity to to drill into the  science really well. And it's it's clear that   the investments that the communities have made has  has made a difference. And we've we're now seeing   um the discussion on science is turning away  from from that and we're able to speak to more   non-point source issues and things that are are,  you know, coming from other places other than   the cities that have wastewater plants. So that  is something that is very, you know, we're very   vocal about and we're making sure that uh we're  trying to keep the regulators on that and I think   the regulators are are supportive. Um Suzanne,  is there anything or Jamie's anything more? No,   you sounds seems like it's I guess just one last  followup. how much so we've added um and would   love I guess slightly more detailed because some  of the positions are um it looks like uh taking  

the same position and upgrading um that position  but how much of the I think it was 1.6 positions   that are total new in the enterprise funds  how many of those are driven by kind of the   regulatory exposure or the regulatory framework  that we have you know positions to PAS. Um and if   you don't have that answer right now, it would  be helpful to know like of the added positions   that there are and a lot of them are you know  a point something how many are being driven by   uh regulatory requirements that we have. How many  are simply or yeah I guess in terms of versus   operations and I know that can be somewhat of a  gray line because the operation in the sewer plant   that we have is driven by regulatory compliance.  we built this new sewer plant. But what um that   would be I guess a helpful addition to the story  of you know where we are seeing you know overall   you know we've reduced general fund uh positions  by nine or so but our total is at six and a half   because uh of the enterprise funds have grown.  just want to make sure that we're we're telling   the story that needs to be told and not just  we're shifting some from the general fund over to   uh enterprise funds and being able to point  out exactly why those additions are needed. if   it's you know from a we need to keep this person  because it's competitive environment that would   be helpful to know um in terms of uh in terms of  that but then really on the regulatory front why   are we what's driving some of the position growth  in that small than it might be this year would   still like to have that answer we can we can  provide that report back councelor Cook thank   you honor um I just have a stormwater question the  presentation is actually very helpful tonight. Um  

uh when we do uh storm water uh total nitrogen  testing um for facilities, where do we publish   that data so that our residents can find it?  So currently it's submitted to the EPA with   our annual report. Um it's an attachment which  the EPA does not publish on their website where   they publish the annual reports. We're working  on a dashboard right now um with a map that   shows all of those locations. Um it's pretty  much ready to go. So, we're just looking for a   place to host it on our city website. Okay. And  I guess a follow on to that since we we are now   moving forward with uh exploration of storm  water utility um process. Will we be able to   um continue to do testing and try to identify  um sources um and target sources, more prominent   sources of some of those pollutants that we're  seeing in storm water more easily once we have   um uh storm water enterprise fund in place?  That sounds like a kind of a crazy question, but   clearly we monitor certain storm water um spaces  for for the short answer is yes over time. Okay.   Um Jamie's been working really hard uh to do a an  account, you know, it's an accounting of all the   sources uh and he gets information from developers  uh whenever they come in. But we haven't done like   a it's more of a desktop exercise. It's not the  actual going out and verifying um type things.   It's it's expensive to do field work like that.  Um and you know over time we will be doing that   work. Um but the creating the enterprise fund will  give us a a reliable revenue stream that's more  

equitably based um than the current structure.  Um, so we look forward to the opportunity to   speak more uh in depth on on the whole stormwater  program as well as the funding needs and and you   know the benefits that we see uh going towards a  enterprise based uh funding source and actually   go ahead but also Jamie like his staff they they  they target the outfalls to identify sources and   then they chase them upstream. So that's what what  those samples are for to identify there's certain   indicators of either crosscontamination or other  things that shouldn't be going down into that pipe   and that's where Jamie and his staff they they  use that as the first step and then they can they   can investigate further upstream. So that's the  point of that type of thing and with his mapping   tools he can identify what's connected in so then  they can target investigations further upstream   and this is all regulated by the permit. We're  required to do these catchment investigations.   Like I mentioned, we're in year eight of 10. Um,  we've been waiting for the last few years for the   new permit, which will most likely require us to  continue and in increase that that testing. So,   and you all know that every year I ask about  microplastics testing. I know that that is   not mandated yet, but there has been some  discussion around it. Um I don't expect us   to see a mandate in the next several years,  but um footed is a concern I have around um   microplastics pollution in our um oceans that  is continuing and clearly that's where we have   a lot of where our storm water goes. Um so will  this allow us to think about that down the road?   um if we have a stormwater utility in place, think  about kind of adding additional testing that maybe   isn't required by EPA, but that we decide as a  community is important to monitor. And I would say   education is probably the first line of defense.  You know, you understanding how much is going out  

is really important, but you know, anybody that's  walking down the street and sees a plastic bag,   you know, pick it up. you know, it you know,  if you you use your dog feces bags, you know,   the you put them in trash cans. Don't just throw  them in down storm drains. I mean, there it's   really a lot that we can do as residents um to  help, you know, reduce plastics pollution. So, do we have numbers on how many dog bags we pick  up out of sewer drains? Is this a high number?   Um, one of the pictures you saw, um, that was  up there was there's more than you would like to   think. Unbelievable. Um, yeah, it's amazing how  much small amount of people. Council. Council,   um, out of curiosity, when you were talking  about flushing the hydrants, do we do as a city   all of the ones that are on public roads and  private roads, like if they exist on private   property? if they sign up, if the privately  owned systems want their hydrants flushed,   they just need to sign up online. We do we  do that. I asked this because my office,   we have one that I drive by every day getting  to my building. So, I'm like there's a Yeah,   there's a liability aspect, too. So, they have  to sign an agreement because it's, you know,   when you operate a hydrant, there's a risk of  damage to fee. No, no fee because it come it   comes out of they're paying their fire service fee  already. I know. We just fixed the hydrant because   it had a problem. We got it fixed. Finally. Um  I I've always have been curious and I think this   is more of either Ben or Peter question, but we  do the 2.5 million out of parking to the general   fund every year. I I and that's been going  on for years and years. I guess I'm wondering   is there any hope or possibility or legal way  that that number could ever change or increase? So, the thing to remember is that we're  wanting to um build a third garage. And so,  

by having a fund balance that's adequate, we can  reduce, you know, the bonding required to complete   that. And that will give us more flexibility when  it comes to creating programs uh such as discounts   or or periods of free um or microtransit and those  types of things. So the you know the the the the   organization or the the budget right now is is  not generating the revenues necessary to cover   all the expenses. The proposed rate changes uh  in this year's budget will provide uh additional   revenues to cover that um that shortfall.  Um Ben's done a great job with his staff   um in maximizing um revenues while minimizing  expenses. Um but I would not encourage council at   this time to be thinking about adding additional  revenues until they're proven. Um and the the goal   is to to really build that fund balance um so  that you can one weather u you know COVID type   events or downturns that so that you don't have  to go in to to tax rates. But the goal that we've   been thinking is that if we can raise revenues and  create a fund balance that's adequate um we could   offset the cost of of bonding um which would be  which would give everybody a lot more flexibility   um when it comes to microtransit when it comes  to parking programs and those types of things.   So that that would be our hope at this time. Okay.  I'm just curious because it when something stays   stagnant for so long you've got to ask like when  you see the revenues coming in where where do we   stand on the flexibility? So I appreciate that.  Sure. Bennis, is there anything you want to add   on to that? No, sir. So, and sorry I I I missed  that question at the restroom there. Um but the  

um I understand that we want that for the the the  parking uh garage, but I guess it's it's difficult   to understand how if you know it stayed stagnant,  but also revenues have increased and we're   projecting a a higher increase this year. And I'm  trying to I was trying to pull up the numbers,   but it's it's we're projecting now 13 million  of parking revenue, correct? And when we set   the the 2.4 number that we increased in  2023 to 2.5 um parking revenues were at we kept you know seven seven and a half. So how  I guess it's it's difficult to to to see why   there's not a greater share. That's the only thing  that's kind of remained constant is so I I would   encourage you to look at that um calculation that  was used to generate that um $555 tax offset. Um   there's a lot of monies that are being spent that  benefit the city that would have been general fund   types of activities. There's 100,000 that goes  to downtown trash collection. There's 300,000   that goes to to snow removal. There's there's  about $6.8 million total. Correct. Um so I would   say the the 2.5 is is just direct cash benefit.  The others are additional additional monies that   have increased over the years. So the 2.4 that we  started with, we had a much smaller amount going   towards um other types of activities that benefit  the city. Um and so it's not it hasn't really the   the contribution hasn't been static. Um so it's  you know I I you know so maybe another way how  

much is so how much is then maybe another way to  look at it would be the retention number how much   has been retained in the the parking fund over  the last 10 years on a yearly basis in terms of   fund balance in terms of I guess like avenue  annual revenue kept in the um in the in the   parking. So a lot of it is as you point out in the  slide it goes to um it goes to uh certainly the   general fund but then there's a number of other  right so all all the if if you think of the the   benefiting district as the city there the the the  ability to spend parking revenues is regulated   um and and it needs to follow certain acceptable  guidelines. So the activities that are allowable   such as uh transportation related to activities,  paving and striping and um things that benefit   the downtown business district are all part  of the the the expenditures. So the the amount   that has gone towards the operational side of  parking has increased over the years. But of   that operational cost, there are things that are  be the benefits that historically were paid for   by the general fund that are now being picked  up by parking because they were justified and   they're allowable within the the rules associated  with the parking revenues. So we are, you know,   at one point we thought about um making parking a  enterprise fund. So it's a standalone um thing and   and then the services that that are provided would  be an overhead uh expenditure directly. So that   2.5 consider that like an overhead associated with  the um with the support of of the enterprise fund   but it's a special revenue fund. And so, but we  try to treat it as, you know, the types of things  

that it does are connected uh to the activities  associated with parking and they benefit um the   city because they historically were paid for out  of the general fund. And I understand I guess the   um it would be helpful I think to maybe have a  look back over the last 10 years on that number   um that we see there from FY27 FY26 to go back in  terms of what we've added. I guess the I just want   to try to come around to the fact that we're now  generating $5 million more out of that um out of   that fund. Um and to see, you know, where that  aligns to uh where that aligns to, you know,   other spending that we have that is benefiting the  parking and and allows people to park. Obviously,   plowing is a as a part of that. um you know  because obviously you know we are able to transfer   uh to the general fund that is a that is a benefit  um and to see just you know why that number it's   just when all numbers are growing and this number  stays static and we don't have a policy of like a   CPI uh based you know approach to the the the the  fund or the the amount of money that's coming out   of the the general fund. It seems like a it's hard  to align that based on our colas and everything   else that grow that that wouldn't also be growing  at a at the same rate that we are uh growing at   least on the on the on the the CPI front. Sure.  And and remember we're a very unique parking   division. Um the fact that we're spinning off any  revenue to the city is exceptional. Um and um the   the challenge at this point is that you know we  have large capital costs ahead of us in terms   of a new garage and if you create you know the  2.4 originally um was something that the former  

city manager said well we need to we need to sell  the the foundry garage and make it palatable. So,   we'll we'll start contributing a certain amount of  money and we'll fix it. There's no magic to that   number. He had that amount of money revenue uh in  surplus and he said, "Well, this is how much we're   going to do." And then it got baked in to the  system. And so now, because we're giving 2.5 on   a regular basis, the last two years we've been in  in in deficit, we haven't covered our costs. So,   uh but we're still spinning off that 2.5.  Fortunately, we had a fund balance that was able   to cover the delta. But what I would caution uh  is is to to to to bake something into a cash flow   that could potentially um not be there. Um and  and the the what I always try to stress to staff   is that, you know, we budget based on the revenues  we know we get. So if we, you know, as long as we   know we have a certain amount and if we have two,  three years of of of surpluses that we can show,   okay, this is a trend that's solid, we could look  at potentially up, you know, increasing the amount   of money. But so far, we've been we've been  depleting our fund balance. And so to consider   adding additional to the to the general fund,  um, I would caution against it at this point.   You know, once we have additional funds, that'd  be great. But at this point, I would be cautious.   Certainly appreciate that. I think the um uh  whether or not it's the foundry garage or just   general um you know our our appreciation of all  the folks that choose to travel onto Portsouth.   I think there always has to be a calculus  of how do we preserve and continue to show   uh the benefit of parking. There are a number of  things that that we do in very small print that  

my eyes can't see at the moment, but I'm aware of  transfer of Presco Park um etc. I think it just   would be helpful looking back over the 10 years  around that what that looks like um and to be able   to understand that you know we have so few options  in terms of revenues in the state. We are unique   in that we have uh we have this um that many other  communities uh do not have. Uh but to look at   this in terms of being able to align it to a um  taxpayer that is uh that is squeezed, you know,   I didn't get the chance to serve with Mr. Baheno.  There was certainly things that I agreed with him   on and and disagreed with him on as a citizen. Um,  but the idea of aligning our um our city to the   benefit of the of the residents and feel as though  there's always a a benefit is one of the things   that I do uh agree wholeheartedly that it should  be at least proven that over the last 10 years   this is what we've chosen to spend on and this is  why it's grown um in terms of the the revenue. And   if it's not then, you know, it's again another  question, especially in times when we're facing   a lot of um inflationary pressures that we did not  face, you know, four years ago. Councelor Taber.   Yeah. And I I appreciate the forward vision when  you're looking at future parking garage and and   it's really important that that fund balance be  healthy. But if you don't look at parking revenue   as just a parking infrastructure silo, if you  say we're a city of 23,000 people that has 60,000   visitors and the only way we can monetize tourists  is through parking. That's our only way. We can't  

do a pillow tax. We've tried and tried and tried.  Um and yet we have to support a huge amount of   operating expense to be a tourist citizen. So I  think when you look at it that way and you say   what's the way that uh we can get the visitors  to pay for some of the costs of this uh this   enormous operating cost. you know, how many police  do we have to add compared to a city our size? And   that staffing of the police goes into the size  of the police facility we have to build. So,   and on and on all these impacts of tourism that  ripple through our entire operating budget. Councelor Flynn. Um, regarding the water and  sewer use rates, um, which this year will come   in just under $7 combined for if you use five  units. I think are we anticipating that year to   year that's going to potentially grow or is that  just, you know, much like the current like water   rate is what 18 years it's been that way. Is  this similar here or are we looking at this to   it? should grow each year. You know, if the costs  keep going up, it should follow that. You know,   we should expect that. That's why we look at  every year. We look at how the fund is doing   to see how much it needs to increase to really  see and see what our costs are. Um, but we we   revisit it every year to to evaluate that and and  those that loss of federal monies could further   potentially the monies that we have now are good  for all the projects that we have going on over   the next four or five years. So that does help for  a little while. Yeah. Okay. Thank you. And then I  

just I'm sorry Jamie and I'm Forgive me because I  you were you were talking and I wasn't sure if I   caught this, but are you were you are you saying  that potentially there would be a fee that will   be associated with storm water or did I miss that?  I I was quickly writing something down. Yes. So we   are um looking to develop a storm water utility  that would have a fee associated um what that   fee would be and how it's calculated is what the  process of uh you know working with our consultant   and and council will will look into. Thank you.  Those those costs though are paid for by general   fund and sewer rates right now. So it would be it  would be diff a different way of collecting them.   Okay. Thank you. And it's not in this budget.  Yeah. Yeah. We got that. We just council. Um so   I have kind of a fun question. This wonderful log  pipe that we have here in front of us. How much   of this did we find um when we dug this particular  sample up, it looks like it's in great condition,   by the way. So um did we really have to replace  it? This is a little bit extreme. So this is   this wasn't in active use. So the lore is that  there were in the past since Peter Rice has been   here there are there were some wood pipes that  were in active use but they're the stave style barrel stave pipes. They were not a wood lock.  Yeah. These can't handle the pressures that we   currently operate at. Um but these ones were were  active pipes. You can see the tuberculations and   the and the metal deposits and the mineral  deposits there. And that was a lead jumper on   a galvanized line. So these were active. That  one is it's one it's a novelty type thing. We   pull them out when we're doing our excavation just  because there's so there's so much so many things   in the ground. But it's a it's a good one that  you know this was active. This is 1800's vintage   um and we're pulling out 1890s vintage pipes as  part of these projects. So we got a a good long  

run out of them. But there's a need for  replacing these aged infrastructure. You   know that's and that that one Elvin road  that's the one you with the current like   rough patches right now. But that was that's  where we're pulling out right now. That's and   that wasn't actually connected to anything.  That pipe is very much gone. That's good to   hear. We're getting it done though. We're  getting it done. It looks like tree bark. Are there any um vacancies currently in the uh  in budgeted uh in budgeted uh positions that   have been vacant for more than three months? I'd  have to get back to you um on that specifically.   Um we have u 164 staff members within the  department and given the nature of the work   uh there's a lot of turnover so vacancies occur on  a regular basis um but we're constantly hiring and   and bringing people on. So I'm not sure what um  what what that number is off the top of my head.   I'd have to I'd have to get back to you on that.  Okay. And then I guess a followup uh to that um   as we um as we as I've asked on the the general  fund and Nathan just to make clear if that can   be if it could have a report um that lists the  um the additional spend that's contractual like   cola's legal spending um additional spend that  is uh uh net new positions. Um you know what that   what that speaks to. Um and then if there's any  uh vacancies uh that are longer than than three   months would be helpful to see that. Um as I I  know that Nathan's working on it for the general  

fund. Um and if we could just shift that over to  the enterprise funds that would be helpful. Okay. Any other questions? All right. Um, we will open  it up to public comment. Peter Huda Portsouth. Good evening. Welcome,  Petra. So, I'm gonna uh just speak about the   same thing I was basically speaking on on Monday  night, and uh it's just something for uh for the   council to think about and it's it's in the  regular salary areas. So when I look at the   salaries in the water department for example, the  regular salaries went up from the actual that we   needed to run the departments in June almost  100%. So my question is why are we going from   408978 which we spent last year for the whole year  to budgeting 827615. Now, um I know some of this   is is connected to the raises and I will I will  address that in a minute. Um I know I only have a   a couple minutes here, so um I'd like to put out  some questions of things that really jumped out   at me when I I just started looking at stuff.  Um especially in um what department is this?

uh treatment plant in Portsouth. Now, when you  read through the materials in the budget book,   it actually says that um chemicals  are going up. So, just for an example,   uh FY25 budget was 575, you spent 430, now we're  we're budgeting 637. So I guess my my question   would be and if we could get a little data on  this is is are they really going up 200,000   because if you look at the trends on this  they don't seem to be increasing that much. The other question that I would have and this  is on Air Force reimbursement is professional   services filter media. So the budget was 650,000.  We only spent 38,497 and now we're budgeting   676260. Uh if there's a reason behind that, I I  hope we could get an explanation on that. Um next,   sewer on the salaries, same thing. We're up we're  up from uh FY25 actual uh almost 50%. The question   in sewer I would have is uh I know we have  engineering departments in almost every uh aspect   of the public works area and the professional  services engineering here in addition this is   in admin in addition to our regular engineering is  running around uh 262,000 for for FY25 and we're   budgeting another 215. So, um I guess the question  would be can this be taken care of in house or is   there a reason that we're going out of out of out  of house for this? The other thing that I want to   bring up, and I've been as I've been looking  at the the salary increases year-over-year,  

there was something was that was was a little  disturbing that uh came out to me and the public   works area and I I've seen it in a couple of cost  centers and that is that the management is getting   an increase of up to 11.3% and a lot of the lower  positions are not. They're not getting anything.   And uh to me that's concerning. I I haven't seen  that before. So uh I would ask that uh we look at   this because it seems to be a breakdown at the at  the cost center level, at the public works level,   and at the HR level that uh this shouldn't  happen. So those are the things that I have   now. I I will save all my fun stuff for the public  hearing. Thank you. Look forward to it. Petra, Esther Kennedy, U 41 Pickering, Portsmith. I  I find it kind of interesting tonight that I   only see five of our nine council here. One  of the most important jobs for counselors is   the budget. Um and that's concerning given  everything that's going on for finances in   our community. So I would have recommended  that if only five could show that maybe   um we would had it at a different time. First  I'd like to uh talk about the water plant. Um,   in my 20 years experience of being involved in  the council level of the city, I have um over the  

years heard things like this is a 50-year fix. And  that's what we heard for the water plant. So to   hear someone say, "Oh, it's outdated and it's only  20 years old." Um, I know that water plant is a   little less than 20 years because I was there when  we voted to totally upgrade it and overhaul it.   I have to ask, are we truly doing 50-year fixes?  Seeing the sewage treatment plant and the amount   of upgrades and the amount of needs that are  coming there. Again, that was even less than   10 years and we're doing all these major things  and it's just general maintenance. I get general   maintenance, but the cost is going up. A long time  ago when I ran I said the three issues we had as   a city was water, water and water, wastewater,  drinking water and storm water and yes there will   be um counselor an increase in fee and storm  water and that has been out there for a while   um and that is not just local but that is state  and federal. So, I guess, you know, I've been told   for years that we couldn't divide the lowest part  of the um sewage or the um wastewater amount. We   had to keep it at at 10 units. And Mr. Rice has  told us for years that we couldn't do it because   we were going to lose revenue. And all of a  sudden, we can. And yet the question is why?   Why? Now, I'm glad to see it as someone who  utilizes that amount, but the question I have  

across the board is where's the money going? What  are the finances? What are the true numbers? Now,   I I get downtown has been a nightmare. We've  been told for years about it being a nightmare   to get it upgraded. So, I understand that  expense, but it's all these little things. Um,   I saw the same thing Petra as she started pointing  out things about the cost of people working. Um,   so I really hope that the five counselors that  are here and the four that aren't sit down and   look at these funds. Um, they are going up. We are  one of the highest price. You can go right online   and look at everyone's um prices for water and for  sewer. And as we heard tonight, it's just going to   go up. Councelor Taber made a good point, but we  heard that we need that money. So the question is,   where can we cut? And as you move forward,  you're going to have to figure out where   we can cut across this budget. And you might have  to ask everyone to come in a little bit lower and   really look and and Peter's exactly right. When  you look at the budget, the amount we expect spend   for chemicals last year and the amount we did  not expend is quite a bit um difference between   what you put in when you look at a $400,000  difference and you didn't spend 200,000 last year.   So, I would encourage us to all look at this a  little bit more, take a little deep, dig in the   pockets and uh try to get these rates to be either  constant or go down. Thank you. Thank you, Esther.

Any other speakers for public comment? Seeing none on Zoom. Um, want to Thank  you again um and thanks in advance   for uh the report backs. Uh we always  reserve the the right to have another   uh work session as we move through uh the month.  Um I I want to you know I think that it's um it's Esther is uh certainly right in terms of  water its importance. It's probably one of the   uh the most it's the reason we have government uh  clean drinking water uh you know portable water,   the ability for sewer. Um I'm encouraged by uh you  know when this team saw that there was uh an issue   with some of the folks not really using uh you  know the water in in in which we have the pipe   there the sewer you know going months on end of  not using that to to being able to look at the the   model and saying hey we're going to capture this  because whether you're you know whether you're   flushing once or flushing 10 times the ability  to flush is really important you know like if   you can't you know that's So, that's an issue.  And so, being able to to change the model to   uh to be able to deal with that. Um, and then just  on the, you know, there's going to be again tough   questions on the budget, but we shouldn't lose  sight of the fact like there's a lot of old stuff,   you know, all the way out to Jitos that that needs  to replace. It's not about just the downtown.   um would love to think of just on the you know  I saw a lot of folks on on social media this   year and while I think that is usually just a a  hellscape that hasn't produced you know a lot of   benefit there are great things when you see um a  you know a kid that's shoveling out their own um   their own uh you know fire hydrants. So, if we  could think of creative ways, I know that we're   having tracking on the plows. If there's fun ways  to get the community engaged and involved in terms  

of adopting some of the the fire hydrants, um, and  being able to, you know, just like we have adopt a   spot to get the community, uh, involved, they're  going to care and be passionate about, you know,   uh, that importance. And then around the the csos,  I cannot believe that we haven't had cso. We're   having a lot of rain. I'm sure we'll have one  tomorrow, but we have the budget meeting tonight.   So you got to say, you know, for the entire year,  but you know, I think there's a responsibility   again for future generations of of Portsouth.  It's good that we it's good that we now um are   using less uh going through Pierce Island than we  did, you know, in 2020, 2012 or 2013. Um but it's   really important in terms of what we're putting  into to that bay. a lot relies on that, you know,   whether it's, you know, fishing or just just the  general health and, you know, what we think about   when we think about, you know, New Hampshire  on the sea coast. So, want to commend uh that   effort that is that has gone into that and I know  all these enterprise funds work uh together um in   a in an interlock fashion, but uh thank you to the  work that has gone into it and look forward to the   future conversations we're going to have on this  budget uh before June 8th. Good night, Portsmith.