Minutes 03/30/1999 - Laserfiche WebLink

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March 30, 1999 As we began the preparation of operating budget for fiscal year 1999-2000, I set forth three priorities that needed to be addressed: the pay plan for general city employees; additional funding for the schools; and continuing efforts to reduce backlog in equipment and facilities. I will address each of those topics later. I might note here that keeping faith with these priorities has come at a cost, particularly funding the continuing improvements in our pay plan for City employees. I will discuss this later, but I wanted to note here that even harder work and greater dedication of our employees will be needed in the coming year to make sure we can meet these obligations. I am pleased to report that our real estate assessed values are continuing to grow. City Assessor William Froehlich recently reported to the City Council that assessed values are anticipated to increase by approximately $110 million or 3.6% from July 1, 1998 to 3,500,000 3,000,000 o 2,500,000 2,000,000 > -o 1,500,000 ~,ooo,ooo < 500,000 Figure 4: Real Estate Assessed Values 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 ~Assessed Value ~Percent Change I 12% 10% 8% 6% 4% 2% O% -2% July 1, 1999. This increase represents the largest one year increase since 1990. [Figure 4] Other revenues of the city also continue to grow, but at a slower pace than the prior fiscal year. Total operating fund revenues are estimated at $151 million, which is a 4.3% increase over the 1999 budget, where average growth for the past three years has been 5.5%. The City has greatly benefited from the effects of a strong national economy with record lows in inflation and unemployment, but we must prepared for an eventual economic slow down and continue to spend responsibly and invest wisely to protect our fiscal health One of our most important financial premises is that we must meet current needs with current revenues. That means that the projection of revenues for the coming year is critically important since it sets the boundaries for our spending. During the current fiscal year, for example, revenues have not quite met the projection we made in preparing the budget, with the result that we have instituted a hiring delay throughout City offices and have also directed departments to seek additional savings in funds that are not already spent or encumbered. We will carry the hiring delay into the next fiscal year until the revenue picture becomes clearer. We are projecting the total City budget to reach almost $370 million in fiscal year 1999- 2000. This is certainly a significant figure which serves as a reminder that Portsmouth is the 211th largest city in America according to U.S. Census 1996 data and is among the top ten in Virginia. On the other hand, our projection of revenues for FY00 will not nearly enable us to meet all needs, particularly in the area of backlog. We should also note that the General Assembly has made additional funds available to the City in its allocation of the state surplus funds. These funds include additional funding for law enforcement to localities as part of the 1979 annexation compromise with Portsmouth to receive an increase of approximately $3 million for a total of $5.4 million which represents only one-third of the total police department budget. Other funding from the state includes additional one-time funding for the Children's Museum of Virginia; salary increases for Constitutional Officers, specifically for corrections officers; increased funding for Social Services; increased highway maintenance funds; and increased School funding for the school operating fund as well as an increase in the state funds available for maintenance.