3.2.2026 City Council Work Session

The City of Portsmouth, New Hampshire, held a work session focused on the Water Sewer Enterprise Fund Rate Model Study. The session reviewed the need to update water and sewer rates due to changes in customer types, increased regulatory costs, and rising operational expenses. Key recommendations included adopting a new rate structure with higher fixed charges for water and the introduction of fixed charges for sewer, modifying usage tiers to improve affordability, and adjusting ancillary fees such as capacity surcharges and wholesale rates to better reflect cost of service. The discussion emphasized balancing customer affordability, revenue stability, and legal defensibility of rates, with particular attention to the distribution of costs between residential, commercial, and industrial users. The council also considered the impact of seasonal water use, especially for irrigation customers, and the challenges of metering mixed-use buildings. Next steps involve committee reviews, ordinance amendments, and formal budget approvals.