Minutes 05/10/1977 - Laserfiche WebLink

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May 10, 1977 The following information was presented that was included in the budget letter of the City Manager: (Page 6) "The recommended funding level for 1977-78 of $54,261,935 is approximately $5 million les? than the total departmental requests of $59,222,588, The proposed operating budget is a main- tenance level budget prepared and submitted on the basis of maintaining the level of services currently being provided for the citizens of Portsmouth. The proposed revenue and operating funds are submitted herewith for your consideration and approval. The administration, under the guidance and leadership of the City Council, has worked diligently in our efforts to improve the tax base and service delivery for our citizens during the last year. There were many accomplishments in our City in 1976-77 ~hich have al- ready been catalogued and publicized; however, we do not intend to rest on our laurels. On behalf of the staff, department heads and other agencies within the City, we commit ourselves to the continued execution and implementation of Council policies in the most efficient and expeditious manner in 1977-78." See letter from Municipal Finance Commission below. On motion of Mr. east and seconded by Mr. Early, the following ordinance was approved on first reading, and by unanimous vote: "AN ORDINANCE TO APPROPRIATE FUNDS NECESSARY FOR OPERATION OF THE CITY GOVERNMENT FOR AND DURING THE FISCAL YHAR BEGINNING JULY 1, 1977 AND ENDING JUNE 30, 1978." ~ "The Municipal Finance Commission reviewed the City Manager's 1977-78 Recommended Budget a~ its regularly scheduled meeting which was held April 19, 1977, and again at a special meet- ing held May 2, 1977. After considerable deliberation, the Commission members voted unanimously to recommend to the City Council adoption of the City Manager's Recommended Budget. Items discussed at length and in which specifi~concurrence was indicated by the Commissior include: 1) Real Estate tax rate to be set a $1.30 per $100 assessed value; 2) Sewage treatment charge to be raised to 52¢ from its current level of 45¢ per hundred cubic feet of water consumption; 3) Return on investment paid from the Public Utility Fund to the General Fund to be chanEed from the present rate at 7 percent to 7.75 percent; 4) Utilization of $890,000 General Revenue Sharing entitlement funds and $125,000 Revenue Sharing interest earnings in the General Fund, $75,000 entitlement funds in the City Garage Fund, and $500,000 entitle- ment funds in the Debt Service Fund; 5) Utilization of $1,357,075 of the Unappropriated Fund Balance, leaving a balance of $500,000; 6) Level of School Board funding to be $23,704,503--to be supplemented by an additional :.~C~r~pT~t~on o~_funds~ to, be-returne.d'b~ thO~S~hoel Board ~t th~tlb~o ~of fiscal The Commission continues to be cognizant of the fact that the Unappropriated Fund Balance does not represent a continuous source of funding and that the present General Revenue Sharing legislation terminates September 30, 1980. The budget implications regarding future years are inevitable, and expansion of the City's tax base to replace thes~ short-lived sources of funding remains of paramount importance. Of great concern to the Municipal Finance Commission is the steady growth in the level of School Board funding which has been experienced in rec~nt years. Further diszussion of this subject follows: School Board Funding Level The provision of funds sufficient for the Portsmouth School Board to make a quality edu- cation available to the children of Portsmouth is recognized by the Municipal Finance Commissio~ to be one of the highest responsibilities of the City's local government. However, it is s~mpl a fact that the City does not possess the resourses to meet this responsibility without sub- stantial State and Federal participation; nor is it the intent of existing State and Federal legislation that this financial burden be borne by the locality alone. During the past half decade, a greater and greater proportion of the Portsmouth School Board's budget has come from local funding, and both the State and Federal shares have con- sistently declined. For the 1972, 1973 and 1974 fiscal years, an average of more than 50 per- cent of the School Board's budget was provided by the State, and the City's share averaged less than 28 percent. The fiscal year 1978 budget is comprised of 44 percent State funding and 36 percent local funding(i.e., before the re-allocation of an additional $400,000 local funds). The City's sincere awareness of its educational responsibilities is clearly reflected in its action over this span of time to accept so large a greater share of the financial burden. The attached Appendix A provides a review of the funding distribution over a seven year period. The attached Appendix B reflects the level of local revenue sources which as been allocate to school operations for the past several years. It shows that in fiscal year 1975, 36.9 percent of all local revenues was allocated to the School Board; as compared to 39.0 percent for fiscal year 1978 (40.3 percent if the additional $400,000 is considered). Stated alternatively in 1975, 63 percent of all local revenues was available for governmental operations, as com- pared to only 61 percent for fiscal year 1978.