HUDA: An Open Letter to the City Council – Another Plea to “Just Say NO!”

Just say “NO” to the City Manager ‘s request for another $450,000!

Time to tell the City Manager: Manage to YOUR budget!!

Before the City Council entertains a final vote, and in the spirit of accountability and fiscal responsibility, taxpayers deserve some answers and updated Financial Information.

Mr.  Mayor and Councilors – I urge you to postpone a final vote until these questions can be answered.

Here’s why…

At the 11/13/23 City Council Meeting, the Finance Director revealed a $7.2M overcharge to taxpayers in FY23, leading to surplus funds. (description below)

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”.

Now, at the last City Council meeting of 2023, the City Manager requests another $450,000, prompting questions about fiscal responsibility and the potential for another surplus.

The call for transparency and accountability is directed at clarifying why $450,000 cannot be absorbed within the current budget.

As a concerned taxpayer, my message is clear:

Please stop asking for more funds when unspent amounts and potential savings exist within the current budget. The City staff is urged to provide timely and satisfactory responses to address these pressing financial questions before the final City Council vote.

The FY23 budget of $132,424,911 increased to $137,283,375 in FY24.  Concerns arise about the City Manager’s request for more funds when there was a significant surplus last year and an additional $4.9M added to this year’s budget.

Suggestions to explore any unspent funds in areas and a few little nooks to look in:

1. At the same December 4^th City Council meeting the completion of the sale of the McIntyre property was announced.
2. In FY22 $480,000 was budgeted for Building Maintenance. How much went unspent? In FY24 Building maintenance had to be budgeted again, how much is unspent for FY24?
3. See the Non-Operating Section of the FY24 Budget book page 396:
4. FY24 – Contingency $300,000  -how much is unspent?
5. Overlay $1,000,000 (only spent $319,038 in FY22).  How much is unspent?
6. McIntyre settlement $500,000 (Has the City paid this, even though we are in litigation with the same party again)?

As of today, December 15^th, the absence of financial information on the City website and missing October 2023 reports add to the concern that we cannot find answers to these questions. https://www.cityofportsmouth.com/finance/proposedadopted-budgets-and-financial-reports

Let’s look at the current audit.  Questions about the FY23 audit status, updates from the Audit Committee, and the completion of the ACFR by November 30th remain unanswered.

• Councilor Tabor, you are the Chair of the Audit Committee.  What is the status of the FY23 Audit with the new auditor CLA and FY23 ACFR?
• Also awaiting word on another helpful tool, the FY2023 ACFR, to analyze what contributed to  the surplus in order to avoid repeating the surplus size.
• Based on the Request for Proposal, (RFP #08-23), Page 8 & 9, Timing Requirements, the Audit was to be complete by November 30th, (5 months after Fiscal year end June 30th).  We have heard nothing about the status of the audit and that is of concern.

Petra Huda

Portsmouth