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May 13, 1975
<br />
<br />319 Idlewood Avenue, representing Portsmouth Education Association.
<br /> Parents & Teacher:
<br />
<br />R. Walker.
<br />
<br />Thomas Worrell,
<br />Ms. Sylvia A. Wall~e~,313 Maryland Avenue, representing Council of
<br />Les Fry, Chairman, School Board.
<br />Dr. M. E. Alford, Superintendent of Schools.
<br />George R. Walker, 1749 Spratley Street.
<br />Lewis Hastie, ~%~-~46~-Wa~ Forget'Road, yield his time to George
<br />Dick Blottenberger, 3000 Detroit Street, representing PEA
<br />Robert F. Spencer, Jr. 4730 Briarwood Lane, representing Retired Senior Volunteer
<br /> Program.
<br />
<br />The following reports from the City Manager were presented:
<br />
<br /> 75-185 "Submitted herewith are the recommended budgets for fiscal year 1975-76, which
<br />begins July 1. The operating budgets include the following funds: General, City Garage,
<br />Deby Service, Public Utility, Mental Health, Law Library, and Virginia Public Assistance. It
<br />is recommended that the revenue and expenditure totals for these funds be adopted as follows:
<br />
<br /> RECO~V~dENDED CURRENT INCREASE/
<br />FUND BUDGET 1975-76 BUDGET 1974-75 DECREASE %
<br />
<br />General S 46,314,208 $ 43,457,332 $2,856
<br />City Garage 1,201,259 1,176,784 24
<br />Debt Service 6,675,932 6,651,571 24
<br />Public Utility 7,566,800 8,000,743 -(433
<br />Mental Health 419,533 397,016 22
<br />Law Library 14,345 17,120 -( 2
<br />Va. Public 12,628,075 11,944,376 683
<br />Assistance
<br />
<br />876 6.6
<br />475 2~1
<br />361 .4
<br />943) -(5.4)
<br />517 5.7
<br />778 -{16.23
<br />699 5.7
<br />
<br /> As you are aware, the City has been operating on a very austere program including a job
<br />freeze on vacancies, effective December 19, 1974, and still in force at this time. The pre-
<br />paration of the annual 1975-76 operating budgets began on a very pessimistic note due to
<br />revenue flows and the state of the economy in Portsmouth as well as in the nation.
<br />
<br /> Due largely to the cutback in expenditures, the job freeze, and the advent of the Compre-
<br />hensive Employment T~aining Act (CETA) programs, the City has been able to effect s'ome savings
<br />and still provide the same level of services committed for 1974-75. Revenues with a direct
<br />relationship to the economy are holding; and, in some cases, small increases over the 1974-75
<br />estimates may be anticipated. This trend in the revenue estimates has been monitored very
<br />closely during the entire 1974-75 budget cycle, espcially since the economic crisis and high
<br />unemployment began to reach critical levels in the fall of 1974.
<br />
<br /> raking the factors noted above into consideration, and using a conservative approach to
<br />estimate future revenues, I recommend to you a Seneral Fund operating budget of $46,314,208 at
<br />current tax rates. Of this total, $45,231,208 will be required to maintain the level of set7-
<br />vices currently furnished to the citizens of Portsmouth by our municipal government with no
<br />increase in salaries for City or school employees. It is my recommendation that an additl-b-nal
<br />$508,000 increase be authorized for the Portsmouth School Board. Together with an increase in
<br />revenues from the Sta~e, this amount will provide for a 5% increase in salaries for all school
<br />personnel, and will constitute a $408,000 increase over the level of last year's local funding
<br />with the additional $~>00,000 provided by Federal funds. With this recommendation, it is under
<br />stood that the School Board will continue its practise of fiscal austerity. It is also under-
<br />stood that the School Board will pay a $370,000 utility bill due December 31, 1975, from 1974-
<br />75 funds. ~
<br />
<br /> I further recommend that the difference Ofo$575,000 left over between the projected reve-i
<br />hues and estimated expenditures be used for a 5~ salary increase for City personnel ~lk a ~
<br />tenur of six months o~ more. TRis will increase the total estimated expenditures by $1,083,00~
<br />for a total General Fund operat%ng budget of $46,314,208.
<br />
<br /> Other highlights of the General Fund include Comprehensive Bmployment rraining Act funds
<br />which total $845,000. This has enabled the City to effectively delete 35 positions through
<br />a process of attrition and/or retirement.
<br />
<br /> An unappropriated surplus totalling $~SB,179.26 was audited and recorSedaat 'June 30, 1974!
<br />This has been included in the General Fund for 1975-76, to the extent of $350,000, along with
<br />
<br />$890,000 in Federal Revnue-Sharing fun~s. This amount ($890,000) is equa.1 to Federal Revenue-
<br />Sharing funds present in our General Fund budgets of 1973-74 and 1974-75.
<br />
<br /> Other major revenue increases projected in the General Fund
<br />Processing charges ($109,00~0), General Property Taxes ($?30,000)
<br />School State Revenues ($63,700), and Business Licenses '($170,000)
<br />
<br /> include Contract~a! Data
<br />, Local Sales Tax ($400,008),
<br />
<br /> Finally, the General Fund includes a $370,000 contingency category which is of vital
<br />importance in these uncertain economic times. This may be used for emergency and/or urgent
<br />situations which require immediate funding.
<br />
<br /> The City Garage Fund budget I am recommending to you totals S1,201,259. There are no
<br />vechicle rent increases pF~sen~ i~ this budget in spite of increased ~osts for cars and gaso-
<br />line. Significantly, this fund shows a $50,000 cutback in gasoline ~xpendi~res. This is due
<br />to an eneryy cnnservation effort which has reduced the use of vehicles and, consequently~ the
<br />number of miles traveled. ReFlacement of equipment will be limited to fewer vechi~les for a
<br />reduction of $50,000 in this category. Revenue-Sharing funds for equipment, total $75,000 and
<br />equal the same level of the past three entitlements.
<br />
<br />
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