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8 <br /> <br />A RESOLUTION OF THE COUNCIL OF THE CITY OF PORTSMOUTH <br />EXPRESSING OPPOSITION OF THE CITY OF PORTSMOUTH TO ENACTMENT <br />OF A WATER SEVERANCE TAX BY THE GENERAL ASSEMBLY OF VIRGINIA. <br /> <br /> WHEREAS, the State Water Commission is considering the <br />introduction of a bill in the 1990 General Assembly to <br />establish a Drinking Water Protection Fund to be financed <br />through a ten cents per one thousand gallon severance tax on <br />water production; and <br /> <br /> WHEREAS, the primary purpose of this fund is to provide <br />grants to upgrade the facilities of small or poorly financed <br />waterwork's systems across Virginia; and <br /> <br /> WHEREAS, the City of Portsmouth will be required to pay <br />into this fund more than $567~000.00 dollars annually with <br />little likelihood of benefiting from the disbursement of these <br />grant monies; and <br /> <br /> WHEREAS, the Commonwealth of Virginia will be subsidizing <br />the capital investment of small and rural waterwork's systems <br />which cannot make the necessary improvements through customer <br />generated revenues~ and <br /> <br /> WHEREAS, a local assistance program of this nature ought <br />to be funded from general State tax revenues rather than an <br />indirect tax on water consumption. <br /> <br /> NOW, THEREFORE, BE IT RESOLVED by the Council of the City <br />of Portsmouth: <br /> <br /> (1) That it hereby expresses its opposition to the water <br />severance tax legislation in the form considered by the State <br />Water Commission at its~meetin~ of December 19, 1989, and <br />states such legislation~is not ~in the best interest of the <br />citizens of Portsmouth or the customers of the City of <br />Portsmouth's Department of Public Utilities because this <br />proposed tax would increase the water bill of each residential <br />customer by approximately seven (7%) percent. <br /> <br /> (2) That this Council opposes a severance tax on water <br />production unless the monies generated thereby are used solely <br />to finance state-wide objectives related to the provision of a <br />safe and adequate supply of drinking water which would benefit <br />all water users in the Commonwealth. <br /> <br /> (3) That the City Clerk make the position of the City <br />Portsmouth on this proposed legislation known by sending a <br />copy of this Resolution to Portsmouth's delegation to the <br />Virginia General Assembly and to each political subdivision <br />served by Portsmouth's Department of Public utilities. <br /> <br />of <br /> <br /> <br />