For the fiscal year ended June 30, 2017

Popular Annual Financial Report

Table of Contents

City of Portsmouth, New Hampshire

Prepared by:City of Portsmouth, Finance Department

Judie BelangerDirector of Finance and Administration

Andrew PurgielDeputy Finance Director

Page #

Letter from the City Manager…… 1

Elected Officials…………….………. 2

Organizational Chart……….……… 3

City Accolades…………….…......... 4

FY2017 Major Accomplishments and Initiatives……………………......

5

Portsmouth at a Glance…..…....... 6

Demographics……………..………… 7

Economic Indicators……….…....... 8

Property Tax Rate…….…..………… 9

Property Taxes……………..………… 10

How to Become Engaged in YourCommunity…………………………….

11

City Department Services and Highlights …….....……………………

12

Spotlight: Wayfinding 21

Spotlight: Portsmouth Public Library’s 10th Anniversary………….

22

FY16 Financial Highlights….......... 24

GFOA Awards………………....... 24

City-wide Fiscal Cycle…………. 25

Glossary of Financial Terms…. 26

Net Position………………………. 27

General Fund…………………….. 29

Fund Balance………….............. 32

Water & Sewer Funds…………. 33

Long-Term Debt……………...... 35

Capital Investments……………. 36

FY2018 Budget Rates………………. 37

Stay Connected……………………… 38

Web Addresses……………………… 39

Citywide Facilities and Parks Map………………………………………

40

Contact Us…………………...……….. 41

To the Citizens of Portsmouth, It is my pleasure to present the second annual Popular Financial Annual Report (PAFR) for year ending June 30, 2017 to the Citizens of Portsmouth. The intent of this report is to provide financial information on how the city is doing in an easy to understand format as well as highlight city accomplishments, accolades, economic indicators, and operational data that we feel will be most informative to you as a City resident. Portsmouth is fortunate to have a passionate, vocal and caring population of Citizens with whom we work diligently for, and with, to continue a strong financial and economic future.

Two new initiatives took place in FY17, to continue City efforts to generate approachability, openness and confidence within our community:• The City’s website was redesigned to be more user-friendly by incorporating easy to

navigate menus as well as interactive portals with an effort to extend public outreach opportunities between city staff and the public.

Letter from the City Manager ...A Letter from the City Manager

• Public Dialogue sessions with City Council members and City staff were established and are held 45 minutes prior to the start of every other regularly scheduled Council meeting. This provides for the public to ask questions and raise concerns as well as receive feedback that would not normally be permitted under public comment session rules.

FY17 was a very productive and a busy year as we continued efforts to maintain and improve City infrastructure. • The City moved forward with construction on the new Peirce Island Waste Water Treatment Facility in an effort to

create and maintain a healthier Piscataqua River and water system for the Portsmouth community. • The City prepared to break ground on its new Foundry Place Garage, which is anticipated to bring much needed relief

to parking availability in both the downtown as well as North and West Ends.• Continued efforts of street and sidewalk improvements included the resurfacing of over 2 miles of roadways,

improving bus access and traffic management at the New Franklin School, and improvements on the Market Street Gateway Project.

• Continued efforts on the sewer separation and stormwater system initiatives.• The completion of the City’s latest Master Plan, shaping the way we look at planning for the future.• The installation of solar energy arrays at both the High School as well as the Madbury Water Treatment Plant to

carry out sustainable practices throughout the City.• Continued conversion project of high pressure sodium street lights to LED lights, saving the City 494,000 kilowatt-

hours of annual electricity consumption.

As you will see from the financial highlight section of this document, Fiscal Year 2017 ended favorably and the City remains fiscally strong, evident by its “AAA” bond rating (the highest achievable rating) from Standard & Poor’s rating agency, as a result of implementing long-term financial planning strategies over the last decade.

Despite certain financial burdens that were passed down to us by the State and County, as well other costs associated with pensions, healthcare, and infrastructure improvements, we’re proud to say that Portsmouth ranks #37 as having the lowest equalized tax rate out of all 234 taxable communities. In addition, the City’s Legislative Subcommittee continues to work with Legislative Delegates in an attempt to create enabling legislation to allow for added local revenue sources to help offset the overreliance on the City’s property tax in the future.

The City is very fortunate to have a dedicated Mayor and City Council to continue our excellent community values that helps develop our future and connects our businesses. I look forward to the events of Fiscal Year 2018 and I am confident that our City plans will improve the day-to-day lives of residents, forge better connections between neighborhoods, allow our local businesses to thrive, and continue to grow the Portsmouth economy.

On behalf of the City staff, we thank you for your continued involvement and look forward to working together in the future.

Sincerely,John P. BohenkoCity Manager Page 1

Portsmouth City Council

M. Chris Dwyer Brad LownJames Splaine, Assistant Mayor

Joshua Cyr

Jack Blalock, Mayor

Rebecca Perkins

Nancy Pearson Eric Spear Joshua Denton

Board of EducationSteve Zadravec, Superintendent

Leslie Stevens, ChairpersonRoseann Vozella Clark, Vice Chairperson

Ann M Walker Nancy Novelline-Clayburgh

Gary EplerKristin Jeffrey

Patrick Ellis Thomas P MartinJeffrey Landry

Portsmouth Elected Officials

Fire CommissionChief Steven Achilles

Jennifer Mosher-Matthes, ChairpersonRichard Gamester

Michael Hughes

The City Council is the governing body of the City of Portsmouth and as such is the policy-making entity of the City, except where otherwise expressed in the City Charter. The City Council consists of nine (9) councilors elected at large for terms of two (2) years. The candidate for City Council who receives the largest number of votes at any election becomes Mayor. The City Councilor who receives the next largest number of votes becomes Assistant Mayor. A candidate for City Council must be a duly qualified voter and resident of Portsmouth for at least two years immediately prior to election.

The public are invited to attend and encouraged to participate in City Council meetings. The meetings are also televised on the Portsmouth Municipal Government Cable Channel 22 and are streamed live on Portsmouth’s City YouTube Channel. City Council meetings are held in the City Council Chambers, Municipal Complex, One Junkins Avenue, Portsmouth, NH 03801. For information, call the City Clerk 603- 610 – 7207.

Police Commission Chief David Mara

Brenna Cavanaugh, Chairperson Joseph Onosko

Joseph Plaia

Page 2

Citizens

Mayor & City Council

School Board

School Department

City Manager

Legal Department

Community Development

Regulatory Services

Planning

Inspection

Health

City Clerk & Elections

Economic Development

Welfare

Recreation & Senior Services

Finance Department

Library

Human Resources

Police Commission

Police Department

Fire Commission

Fire Department

Principal Executive OfficersJohn P. Bohenko, City Manager

Nancy Colbert Puff, Deputy City ManagerDavid Moore, Assistant City Manager

Robert Sullivan, City AttorneyJudith Belanger, Director of Finance and Administration

Andrew Purgiel, Deputy Finance DirectorPeter Rice, Director of Public Works and Facilities

Brian Goetz, Deputy Public Works DirectorSteven Achilles – Fire ChiefDavid Mara – Chief of Police

Steven Zadravec - Superintendent

Kelli Barnaby, City ClerkDianna Fogarty, Human Resources Director

Becky Benvenuti, Tax CollectorRosann Maurice-Lentz, City AssessorMelvin Wilson Jr., Recreation Director

Steven Butzel, Library DirectorRobert Marsilia, Chief Building Inspector

Kimberly McNamara, Public Health DirectorJuliet Walker, Planning Director

Ellen Tully, Welfare Administrator

Emergency Management

Public Works

Parking

Highway

Water/ Sewer

Prescott Park

Page 3

FY17 City Accolades

As in the past, Portsmouth has been the fortunate beneficiary of several positive articles and received several recognitions and accolades in a variety of media. A list of representative examples of this recognition follows:• Livability.com includes Portsmouth in the “2017 Top

100 Best Places to Live” and “The Best Cities for Entrepreneurs”, May 2017

• Portsmouth Ranked Second most - Tax Friendly NHCity for Retirement in Smart Asset.com, May 2017

• US New and World Report – USNews.com travel website lists Portsmouth as the Most Scenic Getaway in New Hampshire, April 3, 20017

• Millennial Personal Finance ranks Portsmouth in the “Top 500 Cities for Pet Friendliness”, April 2017

• Boston.com featured Where to eat, play and stay inPortsmouth in April 2017

• Portsmouth was the only NH city featured in USA Today article listing “Most Picturesque Small Towns inEach State,” January 13, 2017

• Strawbery Banke Museum featured in “The 50 Top Educational Attractions in the Northeast”, Oct. 2016

• Blue Water Mortgage website includes Portsmouth inarticle, “10 Best Towns in New Hampshire to Hang Your Hat in 2016.” Fall 2016

• Portsmouth listed in ranking of “Top Ten Prettiest Towns to Retire,” by marketwatch.com, September 2016

• Thrillist.com includes Portsmouth in article entitled “Top-20-small-towns-according-to-the-dude-who-visited-every-country 2016

• Portsmouth listed as a “Top 7 Destination Road Trips under $500 in US News online travel site. Sept. 2016

• Portsmouth included in Collections Etcetera blog as “One of the Best 39 Small Towns Worth Visiting,” August 11,2016

• Portsmouth ranked as a “Top Small City by National Geographic Traveler Digital Nomad series, July 2016

FY 2017 City Media Accolades

As a result of the City Council’s legislative efforts, it was the first governing body to be awarded the New Hampshire Municipal Association’s (“NHMA”) Russ MarcouxMunicipal Advocate of the Year Award for 2016. The award, which previously had only been given to individuals, is awarded by the NHMA for non-partisan contributions for advocacy of municipal interests and NHMA’s legislative policy goals. The Portsmouth City Council was given this award as a “model of how to engage in legislative advocacy at the municipal level” due to the creation of the Legislative Subcommittee, the efficacy of its efforts in monitoring and supporting legislation and its frequent meetings with its legislative delegates.

FY17 marked the seventeenth year that the City has been recognized as a Tree City USA Community for its investment and strong commitment to street trees as well as for the use of native species in public parks and public rights-of-way. This recertification recognizes the City’s commitment to, and investment in, urban tree planting. It also acknowledges the work of Portsmouth’s Trees and Greenery Committee in implementing the City’s Tree Ordinance.

In 2017, the City’s African Burying Ground and Memorial Park initiative was recognized by The Ash Center for Democratic Governance and Innovation at the John F. Kennedy School of Government, Harvard University. According to the Ash Center, Portsmouth is part of a cohort that includes programs from all levels of government —school districts, county, city, state, federal agencies, and tribal nations, as well as public-private partnerships — that represent the next horizon in government work to improve services, solve problems, and work on behalf of citizens. “Bright Ideas” are showcased on the Ash Center’s Government Innovators Network, an online platform for practitioners and policymakers to share innovative public policy solutions. In recognizing the project, the Ash Center specifically referenced the project volunteers who “worked closely with the city to tell and retell the story of the people the project was meant to honor, engaging the community in increasing and deepening understanding of their shared history.”

Page 4

The following are completed or continued efforts on a number of major financial, economic and community development initiatives as well as citywide infrastructure upgrades and improvements funded through a variety of sources. Additional details on these projects are provided in the Comprehensive Annual Financial Report (CAFR) which is located on the City’s website.

Parks, Playgrounds and Historic Cemeteries

Prescott Park Master Plan Sagamore Creek Historic Cemetery Improvements

Recreation

Paul A. Doble Senior Center Recreation Fields Dog Parks

City’s Cultural Commission

City Cultural Plan

Public Outreach

City Website Popular Annual Financial Report (PAFR) City Projects Page Code Red Water Sewer Outreach

• Water Quality Report • Water Supply Update

Click N’ Fix Public Works Twitter Account Adopt A Spot

Parking and Transformation

Wayfinding Downtown Parking Shuttle Public Transit New Foundry Place Parking Garage Zagster Bicycle Network

Planning, Design and Inspection

Master Plan 2025 Housing Committee Recommendations Vaughn Worth Bridge Strategic Revitalization Committee North Mill Pond Multi-Use Path Hampton Branch Rail Trail McIntyre Building View Permit Software

Water, Wastewater and Stormwater

Pease Tradeport Water Quality Wastewater Treatment Upgrades

• Peirce Island • Pease

Sewer Separation Projects Stormwater System Initiatives Pease Tradeport Water Quality

City Infrastructure Street and Sidewalk Improvements

• Completed pavement of a new bus access to the New FranklinSchool.

• Completed pavement on Colombia Street.• Completed pavement on Summer Street• Continued repair of the High/Hanover Parking Facility deck

spalling, repainting structural steel, and replacement of joint sealant.

• Completed paving of the City Hall lower parking lot• Completed Hanover Street sidewalk and utility project• Completed the design and bid of phase 3B improvements to

the McDonough Street Neighborhood Area.• Began construction of the first phase of the Market Street

Gateway improvements project. • Completed pavement on Woodlawn Circle• Completed pavement on Austin Street from Summer to

Middle • Completed pavement of approximately 3,900 feet of FW

Hartford Avenue• Completed pavement on Arthur Brady Drive• Completed pavement on Durgin Lane• Completed pavement on Greenleaf Avenue from Lafayette to

the Route 1 Bypass• Continued the Citywide Sidewalk Reconstruction Program and

the Pavement Management and Rehabilitation Long-Range Plan.

State Bridges South Mill Pond Tennis Courts Solar Arrays

• Madbury Water Treatment Plant• Portsmouth High School

Street Light Replacement Project Market Street Gateway Improvement Project

Fiscal Year 2017 – Major Accomplishments & Initiatives

Page 5

1. Source: Taintor and Associates, Existing Conditions, 2004. 2. source: City of Portsmouth,

2003 Wetlands Inventory

Portsmouth at a Glance

City GovernmentIncorporated: 1849Form of Government: Council-

Manager

LocationLatitude: 43° 4’ 32” NorthLongitude: 70° 45’ 38” WestCounty: RockinghamState: New HampshireTourism Region: SeacoastPlanning Commission: Rockingham

LandLand Area1:

16.8 sq. miles15.7 sq. miles of land1.1 sq. miles of water

Public Parks & Playgrounds1

200+ acresPublic Streets

136 milesWetlands2 – 3,538 acres

Driving Distance to Selected CitiesManchester, NH – 45 milesPortland, ME – 51 milesBoston, MA – 57 milesConcord, NH – 59 milesNew York City, NY– 270 milesWashington, D.C. – 491 milesMontreal, Quebec – 301 miles

Public TransportationCOAST Bus Services

-Operates both fixed-routes busservice as well as on-demand service for ADA riders.-Free weekend service around the Downtown on the Vintage ChristmasTrolley for the month of December.

Downtown Parking Shuttle-Free downtown parking shuttle between the Connect CommunityChurch lot on market Street to the Hanover Parking Garage for the months of May – December.

Amtrak passenger rail link service is now available between Portland and Boston with stops in Dover, Exeter and Durham, NH.

Nearest Airports-Pease International Airport located on Pease Tradeport.-Manchester-Boston Regional Airportlocated in Manchester New Hampshire.-Portland International Jetportlocated in Portland Maine.- Logan International Airport located in Boston Massachusetts.

Portsmouth at a Glance. . .

Portsmouth Settled in 1623 is the nation’s3rd-oldest city with a rich heritage as working seaport and the home of the State’s only deep-water port. Portsmouth lies along the Piscataqua River, which divides New Hampshire and Maine. It is a regional economic and cultural hub located 57 miles north of Boston Massachusetts and 51 miles south of Portland Maine.

Page 6

1960 1970 1980 1990 2000 2010 2016

Portsmouth 26,900 25,717 26,254 25,925 20,784 21,233 21,496

05,000

10,00015,00020,00025,00030,000

Portsmouth PopulationDecennial Trends 1960-2016(source US Census Bureau)

2.00%

2.90%

4.40%

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

8.00%

9.00%

10.00%

2009 2010 2011 2012 2013 2014 2015 2016 2017

Annual Average Unemployment Rates 2009-2017Portsmouth is consistently lower than the state and

region in unemployment rates. (Source: Portsmouth Economic Development Department)

Portsmouth State of NH United States

Population

21,496C

I

T

Y (2016)NH Office of Energy and Planning

Males10,576

Females10,920

High School Graduate or Higher…95.8%Bachelor’s Degree or Higher…….…57.7% Graduate or Professional degree...21.0%(Educational Attainment – Population 25+ Years - source ACS survey 2011-2015)

Average Household Size - 2.00Average Family Size – 2.75(Source, U.S. Census 2011-2015)Median gross rent 2010-2014 - $1,142(Source, U.S. Census 2011-2015)Total Housing Units – 10,782Occupied Housing Units – 10,262(Source: ACS Survey 2011-2015)

Income, Inflation Adjusted 2015Per capita income - $45,062Median Family Income - $96,858Median Household Income - $71,392Median Earnings, full time

Male - $62,050Female - $50,021

Individuals Below Poverty Level – 6.6%(source NHES Community Profile, Portsmouth 2015 and ACS 2011-2015)

Population per square mile, 2010 – 1,329Land area in square miles, 2010 – 15.7(Source, U.S. Census 2014)

Owner-occupied

53%

Renter-occupied

47%

Under 5 Years5%

Ages 5-1710%

Ages 18-3428%

Ages 35 to 4413%

Ages 45 to 5413%

Ages 55 to 6414%

Ages 65 to 7912%

Ages 80 and Over5%

Population by Age Group(Source: ACS survey 2015)

Demographics

Page 7

Total Valuation Before Exemptions 2016 (FY17)

Economic Indicators

CompanyBusiness Type

Percentageof

Total Taxable Property

Public Service of New Hampshire Utility 3.62%

HCA Health Services Medical Building 1.71%

Branford Holding LLC Apartment Complex 0.97%

Service Credit Union Office Building 0.85%

Liberty Mutual Insurance Office Building 0.74%

Hanover Apartments LLC Apartment Complex 0.56%

Northern Utilities Inc. Utility 0.56%

Kanerd Development LLC Industrial Building 0.53%

Harborside Assoc Hotel 0.52%

Inishmaan Assoc Ltd Ptnshp Apartment Complex 0.50%

Top 10 Taxpayers FY2017

Total Count

Commercial $ 2,238,019,100 1,433

Residential $ 2,580,293,951 7,134

Totals $4,818,313,051 8,567

COMMERCIAL17%

RESIDENTIAL83%

Residential vs. Commercial Properties by Percent of Taxable Parcel Count

COMMERICAL46%

RESIDENTIAL54%

Residential vs. Commercial Properties by Percent of Total Assessed Value

Property Mean Values 2016 (FY2017)Type

Commercial* - $1,436,592Residential ** - $361,690

Residential Stratified Single Family- $405,825

Condo - $310,652Multi-Family 2-3 Units - $474,437

Mobile Homes - $57,548

Median Values Single Family - $347,600Residential ** - $317,850

As of April 1,2016* Includes Pease Non-Airport District and Utilities** Includes single family, condos, multi-family 2-3

units, mobile homes and vacant land.(Source: City of Portsmouth, Finance Department)

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

Largest Employers in Portsmouth 2017

Economic Indicators

Page 8

Property Tax Rate

Municipal Tax - $0.48

County Tax - $0.06

State Education - $0.14

$15.72

$16.34

$16.98 $17.09 $17.41 $17.27

$17.55 $17.91

$18.10

$16.79 $17.04

$14.50

$15.00

$15.50

$16.00

$16.50

$17.00

$17.50

$18.00

$18.50

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

TOTA

L TA

X RA

TE

FISCAL YEAR

Portsmouth, NH Total Tax Rate (Fiscal Years 2007-2017)

Portsmouth had the LOWEST equalized tax rate of $14.17 in Tax Year 2016 (Fiscal Year 2017) among New Hampshire’s 13 Cities and the 37th lowest equalized tax rate in NH out of 234 communities.

Local School Tax - $0.32

Portsmouth , $14.15

Bedford, $18.77

Salem, $18.87

Hudson, $19.41

Londonderry, $20.46

Nashua, $21.06

Manchester, $21.60

Merrimack, $22.58

Dover, $23.59

Rochester, $24.18

Derry, $25.06

Concord, $25.34

Keene, $35.98

$10 $15 $20 $25 $30 $35 $40

Total Equalized Tax Rate 2016 (FY 2017)(NH Communities with at Least 20,000 Pop.)

Tax Rate 2016 Tax Year (FY2017) $17.04 (per $1,000)

Municipal - $8.13

County - $1.09

Local Education - $5.41

State Education $2.41

Page 9

In the State of New Hampshire, Property Tax is

the Primarymethod of

Financing Local Governments

The City Council annually adopts a budget that is made up of program-related operating costs and non-operating costs (known as Appropriations). Estimated Revenues (from fees/fines/etc.) are then subtracted from the annual appropriations resulting in a Tax Levy. The Tax Levy is the amount of money that the City will have to raise through property taxes.

Appropriations – Estimated Revenues = Property Tax Levy

Property Assessments, a value placed on each property in the City, are based on the market value and qualified comparable sales for each individual property as well as other contributing factors as of April 1st of each year. The State of New Hampshire relies on the assessment of values of properties at market value to attain fairness and equality to ensure the tax burden is proportionally spread across all property types.

Property Assessment ÷ 1,000 x Tax Rate = Property Taxes

The Tax Rate is set annually in the fall by the State of New Hampshire. Once the tax rate is set, the formula to calculate what your property tax is as follows:

Property Taxes

Allowable by State Statue, the City of Portsmouth offers numerous options forTax Relief for qualified residents. • Veteran’s Exemption

• RSA 72-28 Standard & Optional Veteran’s Tax Credit• -OR- RSA 72:28-b All Veteran’s Tax Credit

• Elderly and Disabled Exemption• Elderly or Disabled Tax Deferral (RSA 72:38-a)• Elderly Tax Exemption• Disabled Tax Exemption• Blind Tax Exemptions• Exemption for Improvements to Assist Persons with Disabilities

• Religious and Charitable Exemptions

• Solar Energy Systems Exemption

Alaska & New Hampshire are the only two states in the U.S. that does not have either an Income Tax or a Sales Tax.

Property owners who wish to contest their assessments may request a review of their value by filing an abatement application with the Assessing Department.

March 1st is the deadline to file the abatement application with the Assessor. Theapplication can be found online. The Assessing Department must issue a responseno later than July 1st .

Property owners wishing to appeal the Assessing Department’s decision can filewith either the NH Board of Tax and Land Appeals or Rockingham County Superiorcourt by September 1st .

Contact the Assessor’s Office for more information: Phone: 603-610-7249Online: https://www.cityofportsmouth.com/assessors.Page 10

How to Become Engaged in Your Community

The Annual Budget Process• Budget Public Hearings (Police Commission, Fire

Commission and School Board)• Budget Public Hearing (City Council)

Capital Improvement Plan Process• Citizen Project Request Forms• CIP Public Input Meeting (Planning Board)• CIP Public Hearing (City Council)

Public Input Sessions• City Council Public Comment Sessions and City

Council Public Dialogue Sessions• Boards, Commissions, Committees Public Input

Opportunities• Police and Fire Commissions• School Board• School Facilities Committees

• Planning and Public Works hosted Public InputSessions on upcoming construction projects andlong-term planning policies

• Master Planning Process (Master Plan 2025,Sagamore Creek Master plan, Prescott ParkMaster Plan)

• Neighborhood Outreach Forum• Economic Development (Business and

Expansion program with UNH)

Boards, Commissions, Committees• Citywide Neighborhood Committee• Neighborhood Steering Committee• Prescott Park Advisory Committee• Citizen Advisory Committee (CDBG)• New Parking Garage Building Committee• Appointed Positions (Boards, Commissions,

Committees)• Elected Positions (Police Commission, Fire

Commission, School Board)

Public Input Opportunities through Digital Media• Click N’ Fix App

Widely Available Information for Citizens• Updated City Website• YouTube Live Feed (HD quality) , Televised

Meetings (and archived)• Minutes, Presentations, Agendas online• Plans, Documents, Budgets Available in

numerous locations (Online, Clerk’s Office,Library)

• Code Red Snow Ban Information

The City of Portsmouth offers several opportunities forPortsmouth Citizens

to engage in its Local Government Processes.

Page 11

Operation IndicatorsCity Department Services and Highlights

Portsmouth City Council

Fiscal Year 2017

City Council Meetings 23

Work Sessions 9

Council Retreats 2

Portsmouth City Council – 9 Members

The City Council is the governing body of the City and as such,is the policy making entity of the City, except where otherwise expressed in the City Charter. The Council consists of 9 councilors elected at large for terms of 2 years.

City Clerk’s Office - Elections

News and Updates for FY2017 In November of 2017 the City held both the State

Primary and Presidential General Election

Fiscal Year 2017

Registered Voters17,939

(5.10% increase )

Votes Cast - State Primary 3,525

Votes Cast - State General Election 13,556

Votes Cast – Presidential General 13,556

Finance Department

News and Updates for FY2017 In FY17, the City began to roll out a new Citywide

Website design. The new site features a more prolificuse of visuals as well as more user-friendly, mobile-friendly menus. The Citywill also be creating abetter cross departmentnews and informationsystem in order to keepcitizens better informedno matter what theirwebsite destination.

Welfare DepartmentFiscal Year

2015

Fiscal Year

2016

Fiscal Year

2017

General Assistance –Number of Applicants 423 348 303

Outside Social ServicesServices OverviewProvide Funding For:o Cross Roads House o Central Veterans Council o Richie McFarland Children’s

Centero Seacoast Mental Health

Centero Area HomeCare & Family

Serviceso Rockingham Nutrition and

Meals on Wheelso YMCA o Big Brothers/ Big Sisters of the

Greater Seacoasto RSVPo Seacoast Community School

o Rockingham Community Actiono Haveno Child & Family Services of NHo American Red Cross, Great Bay

Chaptero AIDS Response Seacoasto Seacoast Family Food Pantryo Community Services Programo Families First Health & Support

Centero Seacoast Family Promiseo New Generationo Seacoast Pathwayso CASA

The Finance Department published its first PopularAnnual Financial Report (PAFR), a financial documentdesigned to present a condensed overview of theCity’s financial position in an easy to read format.

The Finance Department implemented theacceptance of over the counter credit cardsthroughout the City and additional options fortaxpayers to pay their tax bills, water & sewer bills andother miscellaneous fees online.

Page 12

Operation IndicatorsCity Department Services and Highlights

Portsmouth Recreation DepartmentCommunity Centers – 2Number of boat dock facilities – 2

Swimming pools – 3Tennis Courts – 10

Portsmouth Senior Services DepartmentPortsmouth Senior Center serves adults 50+ yearsNumber of Members – 850Number of Programs – 50

Fiscal Year 2015 Fiscal Year 2016 Fiscal Year 2017

Circulation of Materials 421,739 413,734 411,840

Annual Visits 321,131 352,962 378,351

Portsmouth Public Library

News and Updates for FY2017 In November 2016, the library held its first annual Environmental Impact

Symposium featuring keynote speakers Gregory Norris and Jim Merkel. Many localand regional groups specializing in environmental issues and sustainability hostedbooths offering information about their programs, and over 75 attendees madepledges to take action.

In May 2017, the library hosted a Local Hereditary and Lineage Society Fair.Seacoast organizations such as the Piscataqua Pioneers, Daughters of theAmerican Revolution, Children of the American Revolution, Order of the NewHampshire First Families and several others answered questions about theirrespective societies. Over 100 community members attended.

The library formed a dynamic volunteer Teen Advisory Board (TAB) who meetonce a month to help the library develop programs and activities that engagePortsmouth teens. TAB members developed programs including a “Teen Night In -at the Library” where teens stayed after hours to watch a movie, use “greenscreen” technology and participate in a library-wide scavenger hunt.

News and Updates for FY2017The senior services department hosts monthly senior luncheons in addition to the day to day operation of the senior center. The monthly senior luncheons are a fun and social opportunity for people to gather around food and get to know each other better. During the holiday season both a Thanksgiving and a holiday luncheon are offered in an extra festive atmosphere. We’d love to see you there.

News and Updates for FY2017 The Spinnaker Point Recreation Center added two brand new

saunas for our members to enjoy. The gymnasium is alsobeing renovated with a new gym floor that will be ready by the end of Fiscal Year 18.

The South playground tennis/basketball courts were completely renovated, and we added six pickleball courts tothe two basketball and six tennis courts as part of the new construction.

Construction should begin shortly for a new multipurpose turf field at the Route 33 site. This field willaccommodate football, girls and boys lacrosse, soccer and field hockey.

Page 13

Operation IndicatorsCity Department Services and Highlights

Planning Department

Services Overview Community Planning Land Use Management Transportation Planning and Coordination Environmental Planning and Sustainability Communication and Public Information

News and Updates for FY2017 Master Plan 2025 was adopted by the City Council.

This decennial document is the result of a three-year planning effort that included extensive publicinput, research and documentation on existingconditions and identification of community assetsand anticipated challenges.

In 2016, the Mayor established a Blue RibbonHousing Committee charged with taking initialactions to implement the Master Plan housinggoals. The Committee issued a final report inNovember 2016, which the City Council adopted,recommending zoning amendments to increase thesupply and diversity of housing stock in the City.

In the spring of 2017, the Mayor appointed theVaughan-Worth-Bridge Strategic RevitalizationCommittee. The Blue Ribbon Committee’s chargeis to develop options for future use of City-ownedproperty in this downtown area and report back tothe City Council with strategic recommendations asto how the City can best use its property in serviceto the community.

Fiscal Year 2015

Fiscal Year 2016

Fiscal Year 2017

Applications Processed 819 1,252 1,015

Zoning Revisions and CityCouncil Referrals

Completed16 22 21

Fiscal Year 2016 Fiscal Year 2017

Building Permits 3,086 3,259

Estimated Construction Value $126,249,200 $134,395,844

Inspection Department

Services Overview Plan Review and Code Consulting Permit Issuance Construction Inspections Construction Completion Code Enforcement

News and Updates for FY2017 The Inspection department implemented a

new online software allowing applicants toapply for, and once approved by planning andinspection staff, pay for and print out theirpermit from anywhere.

A significant increase in the number of newresidential units took place this fiscal yearwith a total of 190 new units permitted ascompared to 45 in FY16.

The total number of permits issued increasedfrom the prior Fiscal Year by 6%. Constructionvalue also saw a raise of 6% in FY17.

Inspection staff continued working with FirePrevention in conducting proactiveinspections of commercial properties (officeparks, multi-unit apartment building, retailmalls) to ensure compliance with all applicablecodes.

Page 14

Operation IndicatorsCity Department Services and Highlights

Health Department

Fiscal Year 2015

Fiscal Year 2016

Fiscal Year 2017

Annual Food Service Permits 312 315 340

Services Overview Provide input & direction on community public health

& environmental issues Provide Public Health Education Food Service Inspection & Permitting Inspect child care centers, public & private schools Ensure compliance with food recalls & investigate

food borne illness Investigate environmental complaints regarding

quality of water, air, soil Communicable disease and emergency response

News and Updates for FY2017 The Health Department went live this year with

electronic food service inspections, increasing efficiencyand creating easy-to-read reports.

The Health Department instituted on-line food servicepermit renewals for our 328 Portsmouth food serviceestablishments allowing applicants to convenientlyapply and pay online.

In conjunction with the University of New HampshireCooperative Extension, the Health Department offeredtwo Safety in the Food Environment (SAFE) classes with112 participants who earn a Food Handlers Card whichdemonstrates a food service worker’s solidunderstanding of food safety principles.

Parking and Transportation Division

News and Updates for FY2017 In FY17 the City moved forward with the

construction of the new 600 space FoundryPlace Parking Garage. The project involvesthe re-development of an underutilized areain the North End. In FY17, the project designwas completed and a constructionmanagement firm was selected to beginconstruction. Completion is anticipated inSeptember 2018.

The City’s new bike-share program, managedand operated by Zagster, began in FY17 with30 bikes and 6 bike stations locatedthroughout the community. As of the end ofthe fiscal year, only 2 months after its launch,the system had already logged 548 rides.

Hanover Parking Garage – 900 spacesCity Owned Parking Lots – 13Privately Owned Parking Lots w/ City-Agreements – 7On Street Parking Spaces – 771

Fiscal Year 2016 Fiscal Year 2017

Parking Enforcement Parking Violations 48,268 43,997

Services Overview Parking Facilities and Services Traffic Operations, Planning and Safety

Improvements Roadway and Bridge Design Projects Transit Facilities and Services

Page 15

Operation IndicatorsCity Department Services and Highlights

Department of Public Works• Sanitation – Municipal• Recycling Program – Mandatory• Miles of Streets – 136• Miles of Sidewalk – 70• Number of Bridges – 15• Number of Municipal Buildings – 7 (approximately 266,268 sq. feet) • Playgrounds / parks/ ballfields – 23• Historic Cemeteries – 7

Fiscal Year 2016 Fiscal Year 2017

Streets Resurfaced (miles) 3.80 2.10

Services Overview Administration Engineering Building Administration Rubbish Removal and Disposal Highway and Street Maintenance

Snow Removal Sidewalks Bridge Repairs Equipment Maintenance Facility Tree Program

Mosquito Control Parks and Cemeteries Stormwater

News and Updates for FY2017 The Public Works Department upgraded its annual construction project map to be interactive, allowing a

resident to link to information on a specific project or area of the City .

The Code Red voluntary notification application was utilized to add Snow Emergency and Parking bannotification messaging to alert the residents via SMS message or email when a snow emergency parking ban asbeen declared.

The Public Works department increased its outreach to the Portsmouth Citizens through its Twitter account,educating residents on continuing projects as well as inform them of news and various alerts in real time.

The City converted all of it’s High Pressure Sodium streetlights located on utility poles to LED streetlights. Theconversion results in energy savings of 494,000 kwh per year equaling 350 tons of CO2 emissions equivalentreduction and improvements to nighttime visibility on roadways.

Residents, businesses, and neighborhood groups volunteer their time to help maintain the City's pocket parks,squares, traffic islands, and other green spaces through the Adopt-A-Spot program. There are currently oversixty Adopt-A-Spot’s throughout Portsmouth that help beautify and add personality to the City’s landscape.

In late spring of 2017 the City completed the reconstruction of the South Mill Pond tennis and basketball courts.The project included the removal of the 50+ year old infrastructure and the installation of six new tennis courtsand two basketball courts.

Page 16

Operation IndicatorsCity Department Services and Highlights

Police Department

News and Updates for FY2017 Accomplished a significant re-organization of

the department staff and divisions.

Held the ceremony that marked the “Changingof the Guard” from Chief Mara to Chief Merner.

Completed the installation of the new PoliceRadio System. This was a major project thatreplaced a 16 year old radio system originallyinstalled with a federal grant funds in 2001.

Fiscal Year 2016

Fiscal Year 2017

Change from FY16

Service Calls 40,019 49,423 23.5%

# of MV Stops -Summons/ Citations 343 2,022 489.5%

# of MV Stops - Written Warning 3,339 4,662 39.6%

# of MV Stops - Verbal Warning/ No Action 4,414 4,833 9.5%

# of MV Stops – Total 8,096 11,517 42.3%

Accidents 678 663 (2.21%)

DWI Arrest 55 100 81.82%

Total Number of Arrests 1,063 1,103 3.76%

Services Overview Crime Prevention Community Safety Emergency Communications Center Records

Fire Department

News and Updates for FY2017 February 6 – The Portsmouth City Council

unanimously approved the bonding of up to$400,000 for the acquisition of “one fireapparatus” (medium duty rescue) and up to$610,000 for costs related to improvements to FireStation 3 on the Pease Tradeport.

April 10 – A general alarm fire destroyed the StateStreet Saloon building and firefighters from 50departments responded. This was the largest firein the downtown since the 5 alarm StandardPlumbing and Heating on Market Street fire in1989.

July 12 - The department received a new 2017Horton Type I ambulance on a Ford F-550 chassisfor a cost of $206,868.

Services Overview Fire Protection Emergency Medical Services Hazardous Materials and

Disaster Response Marine and Waterfront Fire

and Medical Response

Community Services Fire Prevention and

Inspection Emergency Management

Fiscal Year 2016

Fiscal Year 2017

Change from FY16

Service Calls Fire Rescue 2,670 2,845 6.55%

Service Calls Ambulance 3,452 3,576 3.59%

Page 17

Operation IndicatorsCity Department Services and HighlightsPortsmouth School Department

Education and Child Care

(source: NHES Community Profile, Portsmouth 2015 and ACS Survey 2010-2014)

Elementary School Middle School High School Private/ Parochial

# of Schools 3 1 1 1

Grade Levels P, K-5 6-8 9-12 P, K, 1-8

Total Enrollment 1,007 537 1,101 124

Career Technology Centers Portsmouth Career Tech Center #19

Nearest Community College Great Bay Community College

Nearest College or University University of New Hampshire

2015 NH Licensed Child Care Facilities

(DHHS Bureau of Licensing)

Total Facilities – 20Total Capacity – 1,335

Mission Statement: "The purpose of the Portsmouth schools is to educate all students by challenging them to become thinking, responsible, contributing citizens who continue to learn throughout their lives."

News and Updates for FY2017 Portsmouth students performed well above state average in every content area (Reading, Math and Science)

at every level in the state assessment system. We are also appreciative of the recognition and high rankings our schools have received from sites such as Schooldigger (www.schooldigger.com) and Niche (www.niche.com).

After many months of research, community discussions and presentations, the Portsmouth SchoolDepartment implemented a later school start for middle and high school students, becoming one of twodistricts in the state to make this change, one that school districts across the country are considering.

PHS Solar Project- Through a utility grant fund, the Portsmouth School Department was able to install a 291kilowatt solar panel system at a zero net cost to the City of Portsmouth. With the renovation of Dondero

CHAMPIONSHIP FINALISTS:• Boys Lacrosse• Girls tennis• Boys Tennis• Girls Spring Track• Boys Alpine Skiing• Boys Golf

CHAMPIONSHIP WINNERS:• Boys Baseball• Girls Lacrosse• Girls Winter Track• Boys Basketball

Elementary and Little Harbor Elementary, the Department has made additionalimprovements that will result in long-term positive impact on energy consumption.

Over the past eighteen months, the Futures Program received three donationstotaling $900,000! Since its inception, $1,700,000 has been distributed to Futuresstudents. Futures currently serves 27 high school and 24 college students and coversstudents’ unmet needs after other financial resources have been utilized.

Portsmouth School Department’s second year of a USDA Farm to School Grant wasa success! Our program is a model for other districts in New Hampshire.

In 2017 Portsmouth Schools received three grants from the Clipper Foundation forinnovative programming in Robotics, development of a STEAM Academy and aClippers Read! Program at PHS.

Athletics- The following teams reached the championships.

Page 18

Portsmouth Water DivisionFiscal Year

2016

Fiscal Year

2017

Water Main Breaks 29 21

Daily average consumption (millions of gallons) 4.6 3.9

Peak daily consumption (millions of gallons) 6.3 6.1

Water Infrastructure• Miles of water mains – 174• Number of service connections – 8,100• Storage capacity in gallons (millions of gallons) – 10• Maximum daily capacity of plant (millions of gallons) – 4.5• Number of fire hydrants – 1, 036

Sewer Infrastructure• Miles of sanitary sewers – 106• Number of wastewater treatment plants – 2• Number of service connections – 6,475• Maximum daily capacity of treatment (millions of gallons) – 25.3

Fiscal Year

2016

Fiscal Year

2017

Daily Average Treatment (millions of gallons) – Peirce Island 3.78 4.13

Daily Average Treatment (millions of gallons) – Pease .5 .57

Portsmouth Sewer Division

News and Updates for FY2017 In FY17 City Staff updated the Annual Water Quality Report to provide

additional data to the City’s water customers.

The Water Division continued to provide monthly water supply updateswhich tracked and assessed water supply conditions, especially withrespect to recovery from the historic drought of 2016.

A large solar array was completed at Portsmouth’s Madbury WaterTreatment Plant, as well as a second located at the Portsmouth HighSchool. The combined total size of the arrays is 578 kilowatts DC and willproduce more than 700,000 kilowatt hours of renewable electricityannually.

News and Updates for FY2017 In FY17, the preliminary work on the Peirce Island Wastewater Treatment

Plant focused on roadway preparation to the treatment facility andmobilizing equipment and materials. Significant upgrades to the entirefacility are taking place over the four year construction time period.Construction continues successfully on the project and was approximately25% complete through the end of FY17.

The design of the first phase to upgrade the headworks at the PeaseWastewater Treatment Facility (screening, grit removal, and raw sewagepumping) was completed and the project will be under construction in FY18.

Work on the Sewer Separation collection system continued with theimplementation of the City’s Long-term Control Plan to reduce CombinedSewer Overflows (CSO). The primary focus of these projects is to separatethe sanitary sewer system from the stormwater drainage system.

Department of Public Works continued to employ two University of NewHampshire students to intern in the GIS department to use globalpositioning equipment and cameras to track down and inspect the City’sstormwater infrastructure.

City Department Services and Highlights

Page 19

Operation IndicatorsCommunity Development Block Grant(Special Revenue Fund)

Services Overview Support to Economic Development

Commission

Business Assistance and Referral

Public/ Private Partnerships for

Economic Development

Community Outreach, Liaison and

Promotion

Business and Economic

Development Information

Creative and Cultural Economy

Special Projects

Services Overview Maintenances of Park Grounds

Maintenance of Park Facilities

Docking Services

Stewardship of Historic Resources

Permitting and Scheduling of Special

Events

Administration of Park License

Agreements

Capital Planning and Project

Management

Prescott Park Division (Special Revenue Fund)

News and Updates for FY2017 The City’s First Time Homebuyer Program, Home Town, assisted five first

time homebuyers in FY17 by providing no-interest loans ranging from$40,000 to $65,000 to help toward down payment and closing costassistance. The Home Town Program is funded through the PortsmouthHousing Endowment Fund.

Community Development Block Grant (CDBG) funds from U.S. Departmentof Housing and Urban Development were used to remove architecturalbarriers that impede accessibility at Operation Blessing on Lafayette Roadand in Prescott Park at the Sheafe Dock used by The Gundalow Company.

CDBG funds also supported public facility improvements such as exterior siteimprovements at the City’s Greenleaf Recreation Center as well asstreetscape improvements along Gosling Road adjacent to Gosling MeadowsFamily Housing.

.

News and Updates for FY2017In 2017, the Blue Ribbon Committee completed its work on the Prescott Park Master Plan, which was subsequently adopted by the City Council. The Master Plan calls for several phases of Park improvements totaling between $14-16 million.

The Master Plan, which included recommendations for governance of the Park, called for the operations of the Park to come under the City’s general government operation. This change over took place in late winter of 2017.

Building on the “Park First” approach of the 2017 Master Plan, a Prescott Park Policy Advisory Committee was appointed. That Committee completed its work in December 2017 with a report on recommendations for ensuring license agreements going forward are consistent with the Master Plan and community conversations about the Park.

City Department Services and Highlights

Page 20

Operation IndicatorsCity Project Spotlight: Wayfinding

Jun 2017

Completion of Phase 2 of the

Wayfinding Plan

Aug 2015

Second Phase of Wayfinding

Program Underway

Apr 2014

Wayfinding Analysis Report

Mar 2014

Design Menu and Specifications &

Preliminary Location Plan

Oct 2013

City Council Project Update

Apr 2013

First Draft Schematic Wayfinding Sign Design

Complete & Public Meeting on Preliminary

recommendations

Feb 2013

Introductory Public

Meeting

Wayfinding

The City took an initiative in 2013 to improve vehicular and pedestrian traffic flow creating a predictable and consistent way for people to find their way around, thus increasing accessibility to key destinations and frequently used areas within the community.

In early 2014, the City completed development of a citywide Wayfinding Plan that identified appropriate wayfinding types, messaging and locations in a uniform and recognizable design menu that is unique to the City. The City was assisted by MERJE, a consulting firm with extensive community wayfinding experience, in the preparation of the Plan and the design menu.

As of the end of Fiscal Year 2017, the City of Portsmouth had completed the second phase implementation of its citywide Wayfinding Program, developed to enhance wayfinding types, messaging and locations in a uniform and recognizable design menu that is unique to the City. As a complement to Phase 1, which focused on the City’s public parking areas, the Phase 2 signs facilitate navigation to key visitor destinations within Portsmouth.

Approximately 60 signs were installed as part of this phase, being placed in the downtown area as well as along the primary road corridors into downtown, including Islington Street, Middle Street and Sagamore Avenue.

This entire wayfinding system is outlined in four total phases and includes a combination of citywide signage, interior signs for the parking garages, in addition to online and mobile tools to assist pedestrians, bicyclists and transit users, as well as motorists to navigate efficiently to their destinations.

Page 21

Operation IndicatorsSpotlight: Our Public Library’s 10th Anniversary Celebration

10 Fun Library Facts:

The New Portsmouth Public Library Building turns 10 . . .

1. The Portsmouth Public Libraryhas had 3,127,600 visitors in thenew building just in its first 10years.

2. Over 4,467,162 items have beenchecked out from the library inthat 10 year time.

3. The most attended program todate was Harry Potter Day inOctober of 2016 with 550 people!

4. The PPL’s Instagram account has1,442 followers.

5. The Tuesday after Labor Day ishistorically the busiest day of theyear with over 5,000 transactionson that day alone.

In 2016, the Portsmouth Public Library (PPL) celebrated the 10th anniversary of its Parrott Avenue building. This 38,000 square foot space was constructed in May 2005 through late 2006 and has served for ten years as a haven for new parents, self-employed workers, adult learners, researchers, book lovers, and everyone in between. The 10th anniversary celebrations aimed to honor the past, present and future of the Portsmouth Public Library and featured a new 10th Anniversary Logo inspired by the eagle that hangs in the building’s stairwell.

The festivities began with a kickoff in September of 2016, where City Mayor Jack Blalock spoke on the importance of the library in the Portsmouth Community. In tribute to the library, throughout the autumn of 2016, the library hosted several exhibits including “PPL Then & Now,” which honored the old library building and the journey toward a the new library building (featuring photographs and testimonials) as well as “Views of PPL,” showcasing works inspired by the library space and created by local artists.

The new library was constructed and is operated as a “green building” offering library patrons an abundance of clean air and natural light. In keeping with the spirit of environmental sustainability, the library hosted a presentation by the U.S. Green Building Council on LEED certification, a talk by the former CEO of Stonyfield Farms, Gary Hirshberg, as well as their first Impact Symposium, where attendees learned from keynote speakers and local organizations how to make an environmental impact in their own lives.

A diverse assortment of other programs were also hosted by the library throughout its celebration. The library hosted two “Portsmouth 2016” panel discussions, on the Media and Education, with guests from NHPR, Seacoast Media Group, Great Bay Community College, New Heights and more. The library also welcomed librarian Stephen Abrams to speak on the “Future of Libraries, Technology & Society.” Local Author Day was held, featuring 25 local authors with works for adults in the areas of fiction, nonfiction and poetry.

In October, Portsmouth Public Library’s Harry Potter Day saw over 550 fans of JK Rowling’s timeless tale. These wizards, witches and muggles alike visited the library to experience the magic of platform 9 ¾, DIY wand making, live owls from the Center for Wildlife in Cape Neddick, ME, and much more.

Page 22

6. The library has 1,426 itemscurrently in its digital collection(see it atwww.portsmouthexhibits.org)

7. Within 3 years of its opening in1881, the original PortsmouthPublic Library was the largest freelibrary in the state . Of alllibraries (subscription or free) itwas second to only thePortsmouth Athenaeum Library,founded in 1817.

8. The most popular Museum passis the New England Aquariumpass.

9. The PPL features two 3D printers

10. The new library building is LEEDCertified, all of the built ins wereconstructed by local woodworkers to minimizetransportation and contribute tothe local economy.

September• Kickoff• PPL then & Now Exhibit• Genealogy After Hours• LEED Certification

Program

The celebrations came to a close with an after-hours Finale Party, featuring a performance from the Soggy Po’ Boys. Winners were chosen for the season-long Library Passport Contest, with an amazing group of prize packages generously donated by local businesses.

October• Portsmouth 2016:

Media• Gary Hirshberg• Harry Potter Day

November/ December• Views of PPL• Local Author Day• Impact Symposium• Future of Libraries,

Technology & Society• Finale Party

Throughout the celebratory season, the library continued to provide the services and programs that its patrons have come to love, including story times, language discussion groups, weekly meditation, World Affairs lectures, discounted museum passes, genealogy workshops, 3D printing, computer classes, book discussion groups, online learning tools, free films, device help appointments, downloadable content, and dedicated staff members who are always willing to help.

Page 23

About this Report

The City of Portsmouth is proud to present this Popular Annual Financial Report (PAFR). The following highlight section of this document was designed to present a condensed overview of the city’s financial position in an easy to read format highlighting pertinent financial information including expenditures, revenues, fund balance, debt service, and capital asset investment for Governmental and Proprietary Funds and detailed information on the General Fund as well as the Water and Sewer Funds for fiscal year ended June 30, 2017. It does not include information on all of the City’s Funds or Component Units.

Financial Information presented in this report is extracted from the City’s audited 2017 Comprehensive Annual Financial Report (CAFR). The CAFR is prepared in accordance with Generally Accepted Accounting Principles (GAAP) and includes additional financial statements, note disclosures and required supplemental information, citywide initiatives, accomplishments and statistical data. The CAFR may be obtained on the city website at http://files.cityofportsmouth.com/finance/CAFR17.pdf

The Government Finance Officers Association of the United States and Canada (GFOA) awarded the Certificate of Achievement for Excellence in Financial Reporting (CAFR) to the City of Portsmouth for its June 30, 2016 Comprehensive Annual Financial Report. This marks the City’s twenty-fourth (24rd ) award. Awards were presented for the Fiscal Years ending June 30, 1988, 1989 and for twenty-two (22) consecutive years from 1995 to 2016. In order to be awarded a Certificate of Achievement, a government unit must publish an easily readable and efficiently organized Comprehensive Annual Financial Report, whose contents conform to program standards. Such reports must satisfy both Generally Accepted Accounting Principles and applicable legal requirements

The City also received the GFOA’s Distinguished Budget Presentation Award for the twelfth (12th) consecutive year; fiscal year beginning July 1, 2006 to 2017. In order to receive this award, a governmental unit must publish a budget document judged proficient as a policy document, a financial plan, an operations guide, and a communication device.

FY17 Financial Highlights

The PAFR, by its summary nature, is not intended to conform to generally accepted accounting principles, rather this report is intended to highlight financial information that may be most informative to you as a citizen of Portsmouth regarding the financial health and stability of the City.

As the City of Portsmouth’s Director of Finance and Administration, it is my hope that you find this report helpful and easy to read. Please feel free to provide me with any questions, comments and/or suggestions regarding this document.

The PAFR may be obtained on the city website athttp://files.cityofportsmouth.com/finance/PAFR17.pdf

Director of Finance and Administration603-610-7223jabelanger@cityofportsmouth.com.

Page 24

July

August

September

October

November

December

January

February

March

April

May

June

New Fiscal Year Begins!

CIP:• Planning Board

Adopts the CIP

Budget:• City Council

Establishes Budget Guidelines

CIP:• City Council Work

Session

• City Council Public Hearing

Budget:• Budget Public

Hearings held by the Police Commission

• Budget Public Hearings held by the Fire Commission

• Budget Public Hearings held by the School Board

CIP:• City Council

Adopts the CIP

Budget:• City Departments

Submit their budgets to the City Manager

• Budget Public Hearing held by the School Board

Budget:• The City

Manager’s Proposed Budget is submitted to the City Council

Budget:• City Council

Work Sessions to include public listening sessions

• Public Hearing held on the Budget

Budget:• Adoption of the

Budget by the City Council

CIP:• CIP Subcommittee

reviews both Department & CitizenRequests

Budget:• Joint Budget Committee

Meets (Public Comment Session)

CIP:• Planning Board

CIP Public Input Meeting

CIP: • CIP Citizens

Project Submissions Due

The Annual Fiscal Process(Budget & Capital Improvement Plan Schedule)

City of Portsmouth, NH

Indicates a Public Input Opportunity

City-wide Fiscal Cycle

CIP: • Planning Board

Initiates the CIPprocess

Page 25

Glossary of Financial Terms. . . .

Abatement An official reduction or elimination of one’s assessed valuation after completion of the original assessed value.

Accrual Basis of Accounting

A basis of accounting in which revenues are recognized in the accounting period in which they are earned, and expenses are recognized in the period in which they are incurred.

Appropriation An authorization granted by a legislative body to make expenditures and incur obligations for specific purpose.

Assessed Valuation The fair market value placed upon real and personal property by the city as the basis for levying property taxes.

Bond Premium A bond premium is an amount that the underwriter provides to the issuer at the closing of bonds in addition to the principal (par) amount borrowed.

Capital Assets Land, improvements to land, easements, building, building improvements, vehicles, machinery, equipment, and all other tangible or intangible assets that are used in operations and that have initial useful lives extending beyond a single reporting period.

Deferred Inflows and Outflows of Resources

Represents acquisition (inflows) and consumption (outflows) that are applicable to future reporting periods.

Enterprise Funds Account for the financing of services to the general public whereby all or most of the operating expenses involved are recorded in the form of charges to users of such services. The Enterprise Funds consist of the Water Fund and the Sewer Fund.

Fund Balance The excess of an entity’s assets over its liabilities also known as excess revenues over expenditures or net assets. Fund Balance can be further segmented as follows:• Non-spendable – Represents fund balance not available to be

spent or legally required to be maintained intact.• Restricted – Represents fund balance that is restricted by

creditors, grantors, contributors, or laws and regulations of other governments.

• Committed – Self-imposed limitations set in place prior to the end of the period.

• Assigned – represents fund balance utilized in subsequent periods for pay-as-you capital projects and on-time, non-recurring expenditures.

• Unassigned – Represents fund balance that is available for any purpose.

General Fund The general fund is the chief operating fund of the government.

Net Position The residual of all other financial statement elements presented in a statement of financial position.

Overlay An appropriation to fund potential tax abatements.

Proprietary Funds Funds used for business-like activities, usually operate on an accrual basis of accounting. Proprietary funds include Enterprise and Internal service funds.

State Revolving Loan Fund (SRF)

A fund administered by the State for the purpose of providing low-interest loans for investments in water and sanitation infrastructure.

Glossary of Financial Terms

Page 26

Governmental Funds:The City of Portsmouth’s financial activities in total are made up of two classifications: Governmental and Business-Type Funds. The table represents the governmental funds the City accounted for in the Statements of Net Position.

Financial Results – Net Position

Statement of Changes in Net Position presents revenues and expenses for the City as a whole and describes the changes in net position for the current and prior fiscal year.

The total Net Position at the end of the fiscal year of $215.7 million represents an increase of $14.7 million or 7.3% over prior year.

Total Program Revenues (charges for services) and General Revenues (mostly taxes and interest on investments) increased $7.6 million or 5.5%.

Total expenses for the City were $130.6 million, an increase of$10.8 million or 9%.

2017 2016 2017 2016 2017 2016

REVENUES

Program revenues:

Charges for services 25,301$ 23,992$ 23,632$ 23,470$ 48,933$ 47,462$

Operating grants and Contributions 5,959 4,932 - - 5,959 4,932

Capital grants and Contributions 3,630 3,113 1,397 877 5,027 3,990

General revenues: - -

Property Taxes 78,956 77,273 - - 78,956 77,273

Interest on taxes 169 209 - - 169 209

Grants and contribution (not restricted) 1,112 1,032 - - 1,112 1,032

Special assessment 1,871 - - - 1,871 -

Investment income 1,219 473 270 98 1,489 571

Other 1,493 2,061 332 197 1,825 2,258

Total revenues 119,710 113,085 25,631 24,642 145,341 137,727

EXPENSES

General government 13,504 12,673 - - 13,504 12,673

Public safety 20,725 18,094 - - 20,725 18,094

Education 54,272 50,084 - - 54,272 50,084

Public works 14,284 12,654 - - 14,284 12,654

Health and human services 675 564 - - 675 564

Culture and recreation 4,331 4,096 - - 4,331 4,096

Community development 1,278 1,116 - - 1,278 1,116

Interest on long-term debt 3,157 3,213 - - 3,157 3,213

Water operations - - 7,907 7,701 7,907 7,701

Sewer Operations - - 10,534 9,657 10,534 9,657

Total expenses 112,226 102,494 18,441 17,358 130,667 119,852 -

Change in net position before transfer 7,484 10,591 7,190 7,284 14,674 17,875

Transfer in(out) 13 27 - - 13 27

Change in net position 7,497 10,618 7,190 7,284 14,687 17,902

Net Position - beginning of year 109,770 99,153 91,233 83,949 201,003 183,102

NET POSITION - END OF YEAR 117,267$ 109,771$ 98,423$ 91,233$ 215,690$ 201,004$

City of Portsmouth, NH

Statement of Changes in Net Position (In Thousands)

Governmental

Activities

Business-Type

Activities

Total

GOVERNMENTAL FUNDS

General Fund Account for all general operating expenditures and

revenues. This is the City's largest fund and

primarily funded from property taxes.

Special Revenue

Funds

Proceeds of specific revenue sources that are

restricted for a specific purpose. These include,

Parking & Transportation, Community

Development Block Grant, Urban Development

Action Grant, Prescott Park and Federal, State,

Local grants and private donations.

Capital Funds CIP projects for City infrastructure Improvements.

Debt Service

Funds

Principal and interest payments on a special

assessment bond.

Permanent Funds Resources that are restricted to the extend that

only earnings and not principal may be used for

purposes that supports programs for the benefit of

the government or citizenry.

BUSINESS-TYPE OR ENTERPRISE FUNDS

Water Production, delivery and storage of safe water.

Sewer Collection and transportation and Treatment of

wastewater.

Page 27

Statement of Net Position presents information on all of the City fund’s assets and liabilities, deferred inflow/outflows of resources, with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator whether the City’s financial position is improving or deteriorating.

The City’s total net position increased from $201 million in FY2016 to $215.7 million in FY2017, an increase of $14.6 million or 7.3%.

Financial Results – Net Position

2017 2016 2017 2016 2017 2016

Current and other assets 121,360$ 103,816$ 67,243$ 57,103$ 188,603 160,919

Capital assets 203,982 190,814 146,351 125,457 350,333 316,271

Deferred Outflows 26,497 7,760 1,207 360 27,704 8,120

Total assets and deferred outflows 351,839$ 302,390$ 214,801$ 182,920$ 566,640$ 485,310$

Long-term liabilities 202,258 173,298 90,398 89,533 292,656 262,831

Other liabilites 30,999 15,850 25,914 1,992 56,913 17,842

Deferred inflows 1,315 3,471 66 162 1,381 3,633

Total liabilities and deferred inflows 233,257 189,148 116,312 91,525 349,569 280,673

Net position:

Net investment in capital assets 120,182 113,266 64,499 60,256 184,681 173,522

Restricted 23,682 17,380 488 650 24,170 18,030

Unrestructed (26,597) (20,875) 33,436 30,327 6,839 9,452

Total net position 117,267$ 109,771$ 98,423$ 91,233$ 215,690$ 201,004$

City of Portsmouth, NH

Governmental

Activities

Business-Type

Activities

Total

Statement of Net Position (in Thousands)

Investment in Capital Assets is the largest portion of net position and reflects our investment in capital assets (e.g. land, buildings, machinery and equipment); less any related debt used to acquire the assets that is still outstanding. As of year-end, net investment in capital assets is $184.6 million, an increase of $11.1 million from FY2016. These capital assets are used to provide services to citizens.

Restricted Net Position of $24.2 million represents 11% of resources that are subject to external restrictions on how they may be used.

Unrestricted Net Position of $6.8 million represents 3% of resources without constraints established by enabling legislation, external agreements or other legal requirements.

Page 28

Expenditures

The General Fund for the City of Portsmouth is the chief operating fund and represents services provided by the General Government, Police, Fire, and School Departments as well as appropriations for the non-operating expenditures including Debt Service, Rockingham County Tax obligation, Overlay, and Capital Outlay.

General Fund

General Fund Final Budget for Fiscal Year 2017 is $107,462,843

Final Budget included three supplemental appropriations:

• $1,850,000 Use of Bond Premium forPurchase of Property

• $400,000 Unassigned Fund Balancefor Purchase of Land

• $265,800 from Unassigned FundBalance for Collective BargainingAgreements.

Public Works 6.0%

Public Safety 17.4%

Education 41.6%

Debt Service 12.0%

Rockingham County Tax 4.9%

Other Non-Operating 7.0%

General Fund

General Government 11.0%

Expenditure Categories

• General Government- City Council, City Manager, Finance, City Clerk, Elections, Legal, Human Resource, Planning, Inspection, Health Public Library, Recreation, Senior Services, Welfare, Outside Social Services, Emergency Management, Collective Bargaining, Transfer to Indoor Pool and Prescott Park

• Public Works – Facilities, Grounds and Highway Division

• Public Safety – Police and Fire Departments

• Education – School Department

• Debt Service – Principal and Interest on Long- Term Debt

• Rockingham County Tax – Portsmouth’s apportionment of the Rockingham County Tax

• Other Non-Operating – Overlay, Capital Outlay, Contingency, IT Equipment Replacement, and Rolling Stock

Fiscal Year 2017 Budget

Operating Budget

General Administration 7,086,678

Regulatory Services 1,434,078

Community Services 3,262,228

Public Works 6,427,261

Police 10,382,847

Fire 8,340,898

Education 44,684,084

Collective Bargaining -

Transfer to Indoor Pool 150,000

Total Operating 81,768,074$

Non-Operating

Debt Service 12,870,810

Overlay 950,000

Rockingham County Tax 5,277,514

Captial Outlay 2,000,000

Other Non-Operating 4,596,445

Total Non-Operating 25,694,769$

Total Annual Budget $107,462,843

Page 29

General Fund

Where does the money come from to fund the General Fund budget?General fund activities are financed by revenues generated from local property taxes, state shared revenues, and other local sources. Actual revenues for FY17 and FY16 are depicted below.

Property Taxes72.0%

Licenses & Permits 5.6%

Intergovernmental 8.5%

Charges for Services 6.2%

Other Financing Sources7.0%

General Fund

Investment Income0.3%

Interest on Taxes0.2%

Other Revenues0.2%

Revenues Actual 2017 Actual 2016

Property taxes 80,655,072 78,252,105

Licenses and permits:

Motor Vehicles Permits 4,502,812 4,228,012

Building Permits 1,019,191 1,054,408

Cable Franchise Fee 360,000 360,000

Other Licenses and Permits 445,357 402,733

Intergovernmental:

School Building Aid from State 1,812,693 1,816,776

Rooms and Meals Tax from State 1,111,547 1,032,133

Highway Block Grant from State 425,438 427,440

School Tuition 6,098,763 6,244,949

Other 39,087 40,096

Charges for services:

PDA Airport District 2,825,472 2,562,731

Police Outside Detail 176,254 177,384

Ambulance Fees 1,067,868 882,710

Net Parking Related Revenue 2,397,305 2,394,805

Recreation Department 282,919 299,281

Other Charges for services 269,910 246,314

Investment Income: 331,973 120,314

Interest on Taxes: 168,675 208,972

Other Revenues: 164,469 171,726

Other Financing Sources:

Water/Sewer Overhead 1,142,454 1,104,652

Use of Fund Balance 4,539,300 2,223,500

Use of Bond Premium 1,219,889 1,540,767

Transfer from other funds 825,000 -

Total Revenues 111,881,448$ 105,791,810$

Page 30

The statement below provides the comparison of the final budget to actual expenditures and estimated revenues to actual revenues for fiscal year ended June 30, 2017.

General FundThe difference between the final budget and actual results is a positive variance of $5,550,104 with revenues exceeding estimated budgets by $4,418,605 and expenditures were less than the estimated budget by $1,131,499. Significant variances include:

Positive variance in Licenses andPermits of $1,231,660 is mainlyattributed to an excess of $652,812as a result of an increase number ofmotor vehicle registrations and$501,194 in building, electrical andplumbing permits resulting fromrenovations and new constructioncitywide.

Positive variance inIntergovernmental of $186,805mainly attributed to school tuition.

Positive variance in Charges forServices of $638,063 primarilyconsists of an excess of $225,472from the Pease DevelopmentAuthority (PDA) and $347,868 fromambulance fees.

Positive variance in Other FinancingSources of $2,044,889 is attributedto bond premiums $1,219,889 and atransfer in from a Capital project of$650,000 and a transfer in from aspecial revenue fund of $175,000.

Current operating expendituresresulting in a positive variance of$509,930 is mainly due to, $237,295surplus in the Police Department,$147,194 in other GeneralGovernment departments mainlydue to vacancies; $37,504 surplus instreet light electricity and, $20,808from welfare direct assistance.

Non-operating expendituresresulting in a net positive variance of$621,569 is mainly attributed to$507,567 surplus in debt relatedexpenditures and a positive varianceof $74,157 from County Tax.

Final Actual Variance With

Budget Amounts Final Budget

Revenues and Other Sources:

Taxes 80,586,495 80,655,072 68,577

Licenses and permits 5,095,700 6,327,360 1,231,660

Intergovernmental 9,300,723 9,487,528 186,805

Charges for services 5,565,555 6,203,618 638,063

Investment income 85,000 331,973 246,973

Interest and penalties 230,000 168,675 (61,325)

Fines and costs 733,000 816,111 83,111

Other revenues 184,616 164,468 (20,148)

Other financing sources:

To reduce taxes 2,023,500 2,023,500

Bond Premiums 1,219,889 1,219,889

Transfers in 1,142,454 1,967,454 825,000

Use of Fund Balance 2,515,800 2,515,800

Total Revenues and Other Sources 107,462,843 111,881,448 4,418,605

Expenditures and Other Uses:

Current:

General administration 6,094,963 6,047,403 47,560

Other general administration 1,129,878 1,044,977 84,901

Public works 6,427,261 6,390,249 37,012

Community services 3,262,228 3,204,838 57,390

Regulatory services 1,434,078 1,415,622 18,456

Emergency management 11,837 4,252 7,585

Police department 10,382,847 10,145,552 237,295

Fire department 8,340,898 8,321,469 19,429

School department 44,684,084 44,683,782 302

Non-operating 25,694,769 25,073,200 621,569

Total Expenditures and Other Uses 107,462,843 106,331,344 1,131,499

Excess of revenues and other sources

over expenditures and other uses -$ 5,550,104$ 5,550,104$

GENERAL FUND

STATEMENT OF REVENUES AND OTHER SOURCES

AND EXPENDITURES AND OTHER USES - BUDGET TO ACTUAL

FOR YEAR ENDED JUNE 30, 2017

Page 31

General Fund- Fund BalanceThe General Fund balance sheet is prepared using current financial resources measurement focus and the modified accrual basis of accounting. Meaning, no long-term assets or liabilities are reported on this balance sheet. Fund balance is the excess of an entity’s assets over its liabilities. The unassigned portion of the fund balance represents expendable available resources that can be spent for future needs.

Unassigned Fund Balance Ordinance

City Council adopted in Fiscal Year 1998 the “Unassigned Fund Balance Ordinance” to maintain assigned fund balance within a certain range. This ordinance was amended in fiscal year 2013 which mandates that the City will maintain an unassigned fund balance of between 10% and 17% general fund appropriations.

Unassigned fund balance at the end of the fiscal year was $14,505,641 or 13.5% of the final general fund budget. This is an increase of $1,347,463 from the prior year. The table demonstrates that over the last eight years, the unassigned fund balance has exceeded 10% of the final general fund budget.

General Fund – Fund Balance

2017 2016

Assets:

Cash and Short-Term investments 8,867,720 29,064,998

Investments 45,285,447 25,052,387

Receivables:

Prpoerty Taxes 2,071,900 2,153,669

Departmental and other 720,671 576,506

Due from other funds 229,778 448,360

Asvances to other funds 567,160 610,160

Other assets 93,901 13,587

TOTAL ASSETS 57,836,577 57,919,667

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES

Liabilites:

Accounts payable 981,711 706,057

Accrued liabilites 880,669 1,176,737

Unearned revenue - 84,828

Retainage payable - 8,593

Tax refunds liability 3,257,070 3,364,005

Other liabilites 431,403 809,520

TOTAL LIABILITIES 5,550,853 6,149,740

Deferred inflows of Resources 1,262,678 1,157,680

Fund Balances:

Nonspendable 567,160 610,160

Restricted - -

Committed 26,964,585 27,956,594

Assigned 8,985,660 8,887,314

Unassigned 14,505,641 13,158,179

TOTAL FUND BALANCE 51,023,046 50,612,247

TOTAL LIABILITIES, DEFERRED INFLOWS

OF RESOURCES AND FUND BALANCE 57,836,577$ 57,919,667$

GENERAL FUND BALANCE SHEET

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About this ReportEnterprise Funds – Water & Sewer Funds

Both the Water and Sewer Funds utilize a comprehensive rate model which serves as a tool to allow for long-term financial planning to create a rate structure that is stable and predictable from year to year to lessen the user rate impact due to capital investments or unanticipated losses of revenue.

The City’s water rate and sewer rate structure is a two tiered inclining rate, meaning, the first 10 units (a unit of 100 cubic feet of water or 748 gallons) of water consumed each month is billed using one rate, and water consumed greater than 10 units per month is billed at a higher rate. As the large volume users have a greater impact on system production capacities, storage volume and pipe sizing a second tier at the higher rate captures the additional costs incurred to serve them.

The City’s irrigation meter consumption rate structure is a three-tiered inclining rate.

WATER FUNDWater Fund operates and maintains water production, water storage and water distribution servicing Portsmouth, Greenland, New Castle, Newington and portions of Durham, Madbury and Rye.

FY17 WATER RATESConsumption per month

First Tier Rate (10 units or less) $4.15Second Tier Rate (over 10 units) $5.00

Irrigation Meter Consumption Rates1st Tier Rate [0-10 units] $5.002nd Tier Rate [11-20 units] $9.703rd Tier Rate [over 20 units] $12.05

SEWER FUNDSewer Fund operates the Collection and Treatment of wastewater.

FY17 SEWER RATESBased on Water Consumption per month

First Tier Rate (10 units or less) $12.24Second Tier Rate (over 10 units) $13.47

Water and Sewer Assistance Program

The City implemented two water and sewer Assistance Programs for residential home-owners or tenants serviced by the City’s Water and Sewer Divisions which allow qualifying customers assistance with the payment of their water and sewer bills. Information regarding these programs can be found on the City’s Website.

An Enterprise Fund establishes a separate accounting and financial reporting mechanism for municipal services for which a fee is charged in exchange for goods and/or services to the general public. The City of Portsmouth has two Enterprise Funds: The Water Fund and Sewer Fund and are accounted for separately.

WaterEfficiency Rebate Program

Offers qualifying residential water and sewer customers a rebate for installing high efficiency toilets and washing machines. The rebates are $100 for qualifying toilets and $150 for qualifying washing machines.

Page 33

About this ReportWater & Sewer Funds

The total net position for the water and sewer funds for at the end of the year increased $7,189,654 to a total of $98,422,916. Key elements of the changes are as follows:

Operating revenues overoperating expenses of $7.9million is mainly attributedto $4.1 million raised forcapital projects that did notbegin before the close of thefiscal year and $1.4 millionraised for rate stabilization reserve for future debtpayments associated withthe upgrades of the PeirceIsland Wastewater Facility.Remaining surplus isattributed to revenuesraised for operatingexpenses that did not occurduring the fiscal year.

Non-operating revenues of$.6 million represent anincrease of $.3 million due toan increase in investmentincome and bond premiumamortization.

Non-operating expenses of$2.7 million represent adecrease of just under $.3million from interestexpense.

Capital grants andcontributions of $1.4 millionrepresents an increase of $.5million due to contributionsmade from the Air Force forwell and water sourceprojects at Pease and StateForce Agreements onMiddle Road. Deer Street Pump Station

Water Water Sewer Sewer Total Total2017 2016 2017 2016 2017 2016

Operating Revenues:

Charges for services 8,129,970$ 8,409,115$ 14,205,902$ 13,873,937$ 22,335,872$ 22,283,052$

Licenses and permits 627,915 538,471 183,625 213,433 811,540 751,904

Department revenue 271,907 277,771 212,768 157,426 484,675 435,197

Total Operating Revenues 9,029,792 9,225,357 14,602,295 14,244,796 23,632,087 23,470,153

Operating Expenses:

Personnel services 3,059,049 2,258,362 3,347,636 2,472,653 6,406,685 4,731,015

Non-personnel services 2,057,142 1,917,996 3,499,124 3,194,057 5,556,266 5,112,053

Depreciation 1,737,531 1,577,929 2,053,152 1,879,974 3,790,683 3,457,903

Total Operating Expenses 6,853,722 5,754,287 8,899,912 7,546,684 15,753,634 13,300,971

Operating Income 2,176,070 3,471,070 5,702,383 6,698,112 7,878,453 10,169,182

Nonoperating Revenues (Expenses):

Investment income 94,267 32,301 175,810 65,746 270,077 98,047

9,924 - -

Bond amortization 179,744 60,112 151,810 126,630 331,554 186,742

Interest expense (1,052,899) (1,394,727) (1,634,649) (1,557,419) (2,687,548) (2,952,146)

Total Nonoperating Revenues (Expenses) (778,888) (1,292,390) (1,307,029) (1,365,043) (2,085,917) (2,657,433)

Income Before Contributions and Transfers 1,397,182 2,178,680 4,395,354 5,333,069 5,792,536 7,511,749

Capital contributions 583,845 482,144 813,273 394,655 1,397,118 876,799

Transfers to other funds (552,326) (552,326) -

Change in Net Position 1,981,027 2,108,498 5,208,627 5,175,398 7,189,654 7,283,896

Net Position at Beginning of Year 37,827,433 35,718,935 53,405,829 48,230,431 91,233,262 83,949,366

Net Position at End of Year 39,808,460$ 37,827,433$ 58,614,456$ 53,405,829$ 98,422,916$ 91,233,262$

PROPRIETARY FUNDS

STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION

CITY OF PORTSMOUTH NEW HAMPSHIRE

The Water and Sewer funds are reported on the proprietary fund financial statements and use the full accrual basis of accounting similar to private sector and report equity as net position. The Statement of Revenues, Expenses and Changes in Fund Net Position for FY17 and FY16 is displayed below for comparison

Page 34

The City of Portsmouth’s total debt increased by $3,604,552 or 2% during the current fiscal year. The key factors in this net increase are: Reductions of outstanding debt principal in the amount of $15,440,999. The issuance of General Obligation bonds and loans of $18,510,000 for the following projects:

$400,000 for a Fire Apparatus. $610,000 for Fire Station 3 Improvements. $5,000,000 for improvements to Elementary School facilities. $6,850,000 for Street and Sidewalk Improvements. $900,000 for Sewer Line Improvements. $2,500,000 for Wastewater Pumping Station Improvements. $2,250,000 for Water Line Replacement and Storage Improvements.

About this Report

A bond rating is a grade given to bonds that indicates their credit quality. A “AAA” rating represents the highest credit rating available and translates to significant savings to you as the taxpayer through reduced interest rates. Rating agencies rate the municipality during each bond issuance focusing on the areas of: Conservative Budgeting Techniques, Debt Management, Stabilization Reserves, Strong Liquidity Management, Succession and Contingency Planning, Fund Balance Policies, along with other demographic factors.

In June 2017, Standard & Poor’s Rating Group (S&P) affirmed the City's bond rating to AAA citing the City’s very strong economy, very strong management with strong policies and practices, strong budgetary performance, very strong budgetary flexibility, very strong liquidity, and strong debt and contingent liabilities position as positive credit factors.

Long-Term Debt Outstanding

AAA BOND RATING

At the end of the current fiscal year, total bonded debt and State revolving fund loans outstanding, including business-type activities (water and sewer departments) was $178,853,065 as shown in the table

2017 2016 2017 2016 2017 2016

General obligation bonds 85,375$ 81,756$ 53,947$ 51,487$ 139,322$ 133,243$

State revolving fund loans 458 671 26,226 29,024 26,684 29,695

Unamortized premiums 7,947 7,455 4,900 4,856 12,847 12,311

Total Debt 93,780$ 89,882$ 85,073$ 85,367$ 178,853$ 175,249$

Outstanding Debt (000s)

Governmental Business-Type

TotalActivities Activites

Page 35

About this ReportCapital Investments

Investments in Capital

Investments in capital improvements are made each year. The chart to the left depicts a 5-year history of capital expenditures to purchase, construct or improve infrastructure city-wide. These projects are funded through annual appropriations, bonds, loans, grants and other capital contributions.

Governmental ActivitiesConstruction in Progress $12,935,428• Foundry Place Parking Facility• Upgrades to Schools and Recreation field Lighting• Upgrades to various streets, sidewalks, building,

parks and playgrounds

Capitalized Assets $17,925,600• Land purchase for future recreation fields• Land purchase at 850 Banfield Road• Little Harbour School renovations• Various sidewalks and street construction• Purchase of vehicles for Public Works, Police Fire,

and School Department

Water Fund ActivitiesConstruction in Progress $5,953,378• Hobb’s Hill Water Tower• Greenland Well• Maplewood waterline projects• Water pressure and stage 2 disinfection by-product

rule implementation• Carbon filtration system.

Capitalized Assets $835,256• Purchase of vehicles and equipment• Various water system quality improvements

Sewer Fund ActivitiesConstruction in Progress $33,484,139• Design of Peirce Island wastewater treatment plant• Upgrades to the Pease wastewater treatment plant• Upgrades to the Lafayette Pump Station• Various sewer system improvements.

Capitalized Assets $1,230,830• Various other sewer system upgrades• Purchase of land on Greenleaf Avenue• Purchase of vehicles and equipment

Ground Breaking – Foundry Place Parking FacilityPage 36

Future Next Year’s Budgets and Rates (Fiscal Year 2018)

At the time of publication of the PAFR for year ending June 30, 2017, Fiscal Year 2018 is underway. The FY2018 Budget document is available for review at the Public Library as well as on the City’s website. In addition to the dollars and cents relating to the annual budget , this document describes department programs and services, performance measurements, financial planning tools and policies, community and economic indicators, citywide continuing priorities, the capital improvement plan summary, and a number of other helpful information to assist in understanding the City’s budget.

Please note the following property tax, water, and sewer rates for FY2018 that are currently in place.

The current General Fund budget is $110,744,920.

The tax rate approved by the Department of RevenueAdministration is $15.38 per $1,000 of assessed value. This isan decrease of $1.66 or -9.7% from the prior year.

Both the Water and Sewer Division user rates have been setbased on a two-tier inclining rate block structure based onunits of water consumed. One unit is equal to 100 cubic feetor 748 gallons of water.

The water rate did not increase in FY18 from FY17 andhas not increased since FY11 remaining at $4.15 forthe first 10 units of water consumed per month and$5.00 per unit for consumption over 10 units permonth. The meter charge rate also remained thesame and is based on the service meter size.

The sewer rate increased from $12.24 to $12.73 perunit for the first 10 units of water consumed permonth. The rate for consumption over 10 units permonth increased from $13.47 to $14.00 per unit.

Irrigation rates are based on a three-tier inclining ratestructure.

• First 10 units of water consumed $5.00/unit• 10 units up to 20 units consumed $9.70/unit• Above 20 units consumed $12.05/unit

Page 37

Visit the City’s updated, mobile friendly website www.cityofportsmouth.com and you can: Pay your Parking Ticket, Water/ Sewer Bill,

Property Tax Bill and more with Invoice Cloud, theCity’s new One-Stop online Bill Pay software

Renew your Motor Vehicle Registration Research Property Values through our Vision

Software system Get a Permit online with ViewPermit software View 3D maps of the City through MapGeo See current Citywide Projects through the City’s

Project Page Report an issue to the Public Works Department

thought Click N’ Fix Sign up for the City’s Newsletter And much more!

Download and use Portsmouth apps on your mobile devices to more easily contact the City Staff or access different activities within the City. Portsmouth Click N’Fix – Connect with the Public

Works Department, send images and reportinfrastructure issues such as potholes, brokensigns, lights and more!

Zagster – BikeShare program with Bikes locatedthroughout the City for use.

Dockwa – Find and reserve available PrescottPark dock spaces online.

Follow the various City Departments on Twitter for up to date information on City-wide happenings (road closures, recreation programs, Fire Department responses and more): City of Portsmouth, municipal Recreation Department Fire Department Police Department Planning Department Public Works Library And More . . .

View live, recent or archived City Meetings on the City’s Youtube Channel as well as TV Channel 22. Viewable meetings include meetings by the City Council, Police Commission, Mayor’s Blue Ribbon Committee on the Prescott Park Master Plan, Historic District Commission, School Board and more!

Page 38

The City of Portsmouth has introduced a new website that features easy-to-navigate

menus and a more mobile friendly set up. You can now more easily find documents,

pay your bills and contact City Staff through this user-friendly new website.

City Departments

• City Manager https://www.cityofportsmouth.com/city/city-manager

• Assessing Department, City of Portsmouthhttps://www.cityofportsmouth.com/assessors

• City Clerk/ Electionshttps://www.cityofportsmouth.com/cityclerk

• Community Developmenthttps://www.cityofportsmouth.com/community

• Economic Developmenthttps://www.cityofportsmouth.com/economic

• Finance Departmenthttps://www.cityofportsmouth.com/finance

• Fire Departmenthttps://www.cityofportsmouth.com/fire

• Health Departmenthttps://www.cityofportsmouth.com/health

• Human Resourceshttps://www.cityofportsmouth.com/hr

• Inspection Departmenthttps://www.cityofportsmouth.com/inspection

• Park Portsmouth www.cityofportsmouth.com/publicworks/parkportsmouth

• Plan Portsmouth (Planning Department)https://www.cityofportsmouth.com/planportsmouth

• Police Departmenthttps://www.cityofportsmouth.com/police

• Public Libraryhttps://www.cityofportsmouth.com/library

• Prescott Park https://www.cityofportsmouth.com/prescottpark

• Public Works Departmenthttps://www.cityofportsmouth.com/publicworks

• Purchasingwww.cityofportsmouth.com/finance/purchasing-bids-and-proposals

• Recreationhttps://www.cityofportsmouth.com/recreation

• School Departmenthttps://www.cityofportsmouth.com/school

• Tax Collectorhttps://www.cityofportsmouth.com/tax

• Welfare Departmenthttps://www.cityofportsmouth.com/welfare

City Council, Commissions, Boards, Committees• Portsmouth City Meetings Schedule

www.cityofportsmouth.com/planportsmouth/meetings-schedule

• Portsmouth Meetings YouTube Channelhttps://www.youtube.com/user/CityofPortsmouth

• City Councilhttps://www.cityofportsmouth.com/citycouncil

• Fire Commissionhttps://www.cityofportsmouth.com/fire/events/fire-commission-6

• Police Commissionhttps://www.cityofportsmouth.com/police/police-commission

• School Boardhttps://www.cityofportsmouth.com/school/school-board

• Boards and Commissions Informationhttps://www.cityofportsmouth.com/cityclerk/boards-commissions-information

City Documents• Capital Improvement Plan for 2018-2023

http://www.planportsmouth.com/2018-2023CapitalImprovementPlan.pdf

• Comprehensive Annual Financial Report (CAFR)https://www.cityofportsmouth.com/finance/proposedadopted-budgets-and-cafr-reports

• FY17 Adopted Budget Documenthttps://www.cityofportsmouth.com/finance/proposedadopted-budgets-and-cafr-reports

• Master Plan 2025https://view.publitas.com/city-of-portsmouth/portsmouth-master-plan-adopted-2-16-2017/page/1

Other City Items• City of Portsmouth Wastewater

https://www.cityofportsmouth.com/publicworks/wastewater

• Citywide Projectshttps://www.cityofportsmouth.com/publicworks/projects

• Drinking Water Qualitywww.cityofportsmouth.com/publicworks/water/drinking-water-quality

• Online Bill Paymentshttps://www.cityofportsmouth.com/city/pay-my-bill

• Portsmouth City Mapping Software - MapGeohttps://www.cityofportsmouth.com/public-works/engineering-gis/mapgeo

• Portsmouth Click N’Fix (Request Public Works Maintenance Service)www.cityofportsmouth.com/publicworks/portsmouth-click-n-fix

• Portsmouth’s Sustainability Initiativeshttp://cityofportsmouth.com/sustainability/index.html

• Solid Waste and Recyclinghttps://www.cityofportsmouth.com/publicworks/solid-waste-recycling

City of Portsmouth ~ Web Addresseswww.CityofPortsmouth.com

Page 39

Operation IndicatorsCitywide Facilities and Parks Map

Page 40

Contact UsName/ Department Telephone Number Primary Location

Portsmouth City Hall (Switchboard) 603-431-2000Portsmouth City Hall

1 Junkins Ave Portsmouth, NH 03801

Mayor Jack Blalock 603-610-7200 Portsmouth City Hall

City Manager John P. Bohenko 603-610-7202 Portsmouth City Hall

Deputy City Manager Nancy Colbert Puff 603-610-7297 Portsmouth City Hall

Assistant City Manager David Moore 603-610-7226 Portsmouth City Hall

Finance DepartmentDirector: Judie Belanger

Accounts Payable

Purchasing

Tax Collector’s OfficeTax Collector: Becky Benvenuti

City Assessor’s OfficeCity Assessor: Rosann Maurice-Lentz

603-610-7223

603-610-7236

603-610-7227

603-610-7244

603-610-7249

Portsmouth City Hall

Portsmouth Public WorksDirector: Peter Rice

Deputy Director: Brian Goetz603-427-1530

Public Works Building680 Peverly Hill Road

Portsmouth, NH 03801

Portsmouth Police Department Chief: David Mara

Emergency – 911

Non Emergency603-427-1500

Portsmouth Police Department3 Junkins Avenue

Portsmouth, NH 03801

Portsmouth Fire DepartmentChief: Steven Achilles

Emergency – 911

Non Emergency603-427-1515

Portsmouth Fire Department – Station 1170 Court Street

Portsmouth, NH 03801

Portsmouth Public LibraryDirector: Steven Butzel

603-427-1540Portsmouth Public Library

175 Parrott AvenuePortsmouth, NH 03801

Portsmouth School DepartmentSuperintendent: Steve Zadravec

603-431-5080Portsmouth School Department

1 Junkins AvePortsmouth, NH 03801

City Clerk’s OfficeCity Clerk: Kelli Barnaby

603-610-7245 Portsmouth City Hall

Health DepartmentHealth Officer: Kim McNamara

603-610-7273 Portsmouth City Hall

Inspection DepartmentChief Building Inspector: Robert Marsilia

603-610-7243 Portsmouth City Hall

Planning DepartmentPlanning Director: Juliet Walker

603-610-7296 Portsmouth City Hall

Human ResourcesDirector Dianna Fogarty

603-610-7270 Portsmouth City Hall

Legal DepartmentCity Attorney: Robert P. Sullivan, Esq.

603-610-7204 Portsmouth City Hall

Recreation DepartmentRecreation Director: Rus Wilson

603-766-1483Spinnaker Point Recreation Center

30 Spinnaker WayPortsmouth, NH 03801

Senior ServicesSenior Services Coordinator: Brinn Chute

603-610-4433Portsmouth Senior Center

100 Campus DrivePortsmouth, NH 03801

WelfareCase Technician: Ellen Tully

603-610-7267 Portsmouth City Hall

Page 41

2017Popular Annual Financial Report

Fiscal Year Ended June 30, 2017

www.cityofportsmouth.com