Minutes 05/13/1975 - Laserfiche WebLink

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II.! M~v 13, 1~75 The Debt Service Fmnd recommended for 1975-76 includes $150,000 for interest on possible new issues of General Obligation Bonds to be sold in the first half of fiscal 1975-76. As you are aware, this fund impacts on the General Fund's Debt Service category which re~lects a reduction. This reduced level of transfer which is due to higher utility taxes is to "hold the line" in the Debt Service Fund, allowing an equal, or slightly surplus outcome for the 1975-76 fiscal year. A reduction of $75,000 in note interest is significantly noted here. The recommended Public Utilities Fund of $7,566,800 is based on a seven percent (7%) return on the capital investment and reflects increased costs for utilities and chemicals. Federal funding regulations for Public Utilities require that this fund be balanced. To achieve this end, as well as to implement sound fiscal policy, it is necessary to adjust the sewage fees from 30¢ to 38e per 100 Fubic feet of water consumption for customers outside the 1968 annexed area. These sewage fees will then correlate with those charged By the Hampt Roads Sanitation District (HRSD). This rate increase is calculated to bring forth an estimated $280,000 in additional revenues. The average cost increase per residential customer is calculated at $1.25 to $1.30 per month. Sewage connection fees in the Tidewater cities average between. S250 and $400, no 30-day discount provision. In Portsmouth, sewage fees during the first thirty days after connection total $150. Unlike her neighboring cities, Portsmouth does not collect front foot age charges for residents or developers. Therefore, it is necessary to equalize the fees sewage treatment to balance the Public Utilities fund, and to provide the quality of service so necessary to our citizens. This, together with a $2.50 rise in "on-and-off" charges, are the only items in this year's budget which reflect a rate or fee increase. The Mental Health Fund of $419,533 which I am recommending is a 5.7% increase over that in the 1974-75 budget. However, it is extremely important to note here that this reflects a reduced local contribution. The Law Library Fund has been decreased from $17,120 to $14,345. This is due to the curtailment of part-time services provided in the past by a Law Librarian. The Virginia Public Assistance Fund reflects an increase of $683,699. This is due to State-mandated increases which regulate local participation in several assistance cate- gories. General relief in 1975-76 will be provided at 60% of need rather than at 75% which was the level in 1974-75. Increased foster care allotments, general relief, purchase of services and supplemental grants for Social Security recipients have caused the total City cost for assistance to increase by 37~ over the past year. This is illustrated in the Gener~ Fund categories of Public Assistance City Share Assistance Programs, as well as the Virginia Public Assistance Fund. A Municipal Budget is a mirror of the services provided to citizens of a community. Although this budget I am recommending is a reflection of grave economic trends, it is also an illustration of sound municipal fiscal policies and ~ stable level of municipal services. For example, in spite of skyrocketing electricity, gas and heating fuel costs, the City has managed to reduce electrical usage by approximately 10% through initiation of an energy con- servation program. I pledge ~o you a continuation of these efforts to maintain our present level of servic~ within a framework of fiscal caution. Thus, as our City grows fiscally stronger, our level and quality of services may grow and expand accordingly." The following letter from the Portsmouth Municipal Finance Commission was presented: "At the regularly scheduled meeting of the Municipal Finance Commission held on Tuesday, April 15, 1975, the Commission reviewed in detail the 1975-76 operating budget as proposed by the various City departments and as recommended by the City Manager. After hours of dis- cussion and study, this Commission concluded its review and upon unanimous vote of all present, the Municipal Finance Commission acted to recommend to the Portsmouth City Council adoption of the 1975-76 operating budget as presented by the City Manager. The primary con- siderations which resulted in this recommendation are discussed below. In December, 1974, you furnished general policy guidance to the City Manager for the preparation of the 1975-76 budget. That budget policy as relayed to the various department heads, emphasized austerity and an unwillingness by the City Council to institute tax creases for the coming fiscal year. Accordingly, City Manager Robert T. Williams informed this Commission that the basic philosophy which permeated the entire budget preparation was founded on the proposition that the cost of municpal services to the citizens of this City are as great as the citizens are willing and able to afford in the face of the current economic conditions. It is evident from the very conservative budget proposals of the vari- ous City departments that your budget guidance was filtered into all levels of the 1975-76 budgeting process. As a result of the commitment t~ austerity at all levels, the City Manager's recommended budget parallels the departmental requests much more closely than in previous years. The recommended General Fund budget is $46,314,208, which represents an increase of 6.6%. Of the General Fund.Budget, $21,638,573 is recommended for the School Board, ~f which $7,208,573 is local funds. This amount represents 36% of locai revenues, which is consistentI with this Commission's previous recommendation that approximately 35% of local revenue be allocated to School Board aperations.