As concerned Portsmouth taxpayers, it is not only our right but our duty to scrutinize the allocation of our hard-earned dollars. I am committed to exercising this right and will continue to do so because transparency is crucial, and fellow taxpayers deserve to be informed.
The upward trajectory of the FY24 Budget and the increased use of “surplus funds” has significant implications for all of us, necessitating the application of the age-old adage “trust but verify.”
A “Budget surplus” is created when the City Administration estimates and bills taxpayers a larger amount than is needed to provide City services. Currently these surplus funds remain in the “unassigned fund balance”.
Let’s review the second paragraph of the 12/4/23 City Council Packet, City Manager Item #1, Supplemental Appropriation of $450,000 for Outside Counsel Litigation Fees.
The City Manager states, “In these two matters, there is no dedicated fund from which to pay the on-going monthly invoices from outside legal counsel. Both matters were initiated in the spring of this year, after the budget was published & before litigation was significantly underway. It would have been difficult to anticipate the on-going legal expenses associated with these matters at the time the budget was passed”.
Is the City Manager going to get the additional $450,000 when she and her staff failed to anticipate expenses that were obvious in April 2023?
Before the City Council entertains a final vote and in the spirit of accountability and fiscal responsibility, I urge the City staff to provide clear and satisfactory responses to these pressing questions. Top of Form
Will the City Council give her another 9-0 vote without any questions, like the one below?
Why did the City Manager delay seven months after receiving estimates from outside counsel for their services, as noted in the Portsmouth Herald today?
A Brief History of These Lawsuits
But in verifying the timing noted above, a perplexing aspect arises in examining the City Manager’s rationale for an additional budgetary request. This justification appears at odds with reports listed below. That makes it clear the City Manager and the City Attorney had a good idea there would be additional expenses for the City due to this litigation early in 2023.
Banfield Road
The Banfield Road litigation initiated in December 2022 and its description was publicly available in the Nashua Telegraph.
Redgate/Kane-McIntyre
As reported in Seacoastonline & the Portsmouth Herald, in April 2023. the City Manager along with the new City Attorney led the negotiations with Redgate/Kane regarding McIntyre and had a front row seatduring the deteriorating negotiations back in February 2023 as indicated by Redgate/Kane. Portsmouth, Redgate Kane Sue each other
Disingenuous Excuse
It strains credulity that City management wasn’t aware of the need to put these amounts at the least in the “Legal” dept. for “outside consultants” in the FY24 Budget to cover known litigation expenses.
It is true that the damage amounts from these lawsuits are as yet unknown. But the need for external legal counsel was foreseeable, especially following the Council’s approval of a settlement agreement that was brokered by the City Manager and new City Attorney in early 2022, an agreement that was void of any escape clauses for the City.
These actions suggest that City management does not operate proactively, but reactively on financial issues and expenses.
Is this poor financial management or leadership?
Also, taxpayers should be aware, the Budget is in the process of preparation each year from January to May, (additions or deletions can be made during this time). The final Council approval vote is required by the last day of June.
- Considering the estimated FY2023 surplus of $7.2 million disclosed by the Finance Director at the November 13, 2023 City Council meeting, has any comprehensive analysis been conducted to explore alternative funding sources before resorting to additional “unassigned balance” funds?
- If such an analysis has been undertaken, we, as taxpayers, request to see the findings.
Before the City Council entertains a final vote and in the spirit of accountability and fiscal responsibility, I urge the City staff to provide clear and satisfactory responses to these pressing questions.
Petra Huda, Portsmouth
