A AAA Bond Rating Is Something to Be Proud Of — But Accountability Still Matters

One thing Portsmouth should be proud of is our AAA bond rating — the highest possible rating a city can earn. It’s a reflection of strong financial management, careful planning, and decades of responsible decision-making by city leaders, staff, and residents alike.

During my four years on the City Council, we held several bond hearings that supported critical infrastructure projects — water and sewer upgrades, roads, sidewalks, and other improvements that keep our city running smoothly. Those investments are important, but they also taught me something that most residents never hear much about: bond premiums.

When a city with a AAA rating goes out to bond, it often receives what’s called a bond premium — essentially an upfront payment that can feel like “extra” or “free” money. But as I learned, it’s not truly free. Accepting a bond premium often means the city pays a higher interest rate over time.

Some other AAA-rated cities in New Hampshire choose not to accept these premiums for that very reason. Portsmouth, historically, has accepted them — but we did so openly. In my time on the Council, the city manager would bring forward a public list of how those premiums were being used, and the Council would discuss and vote on those uses in full view of residents.

That transparency seems to have disappeared.

Over the last three years, this current City Council has approved more than $170 million in bonding — and yet, not once have I heard any public mention of a bond premium. There have been no reports, no discussions, and no explanations. So, I have to ask:

• Are we still receiving bond premiums?

• If so, how much has been collected?

• And perhaps most importantly — where did that money go?

These are fair questions that every taxpayer deserves to have answered. Bond premiums used to be a routine part of the public conversation. I myself made recommendations for how to use them, often with the goal of offering a little relief for taxpayers.

That level of transparency and accountability is what our city government should always strive for. Our AAA rating is something to celebrate — but it also comes with responsibility. Responsible leadership means not only maintaining that rating, but also being honest and open about how we manage the funds that come with it.

The people of Portsmouth have a right to know how their money is being handled. If elected, I’ll work to ensure those conversations return to the public eye — where they belong.

— Rick Becksted