Minutes 03/30/1999 - Laserfiche WebLink

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March 30, 1999 The City made a strong case for these funds and appreciates the work of our General Assembly delegation, the Virginia Municipal League and others that produced these state appropriations. However, it should be noted that the bulk of these funds are in one-time appropriations and not in formula changes that would ensure the City an additional revenue stream for years to come. Therefore, we should use these funds with caution, applying them to non-recurring costs because of the uncertainty of future funding. The theme for this proposed fiscal year 1999-2000 operating budget might be cautious optimism. We are certainly making progress in our major goal areas, and we have identified the high priority items that need additional funding in the coming year. On the other hand, we must continue to operate within the reality of our revenue stream and other financial constraints, putting forth funds toward our priorities as they become available. BACKLOG In last year's budget message, I noted the difficulties of dealing with needs that have accumulated throughout the City government because of funding shortfalls of the past. Last year I paraphrased William Shakespeare and noted that "what is past is backlog." Since the bard is in the Academy Award headlines these days, perhaps it is appropriate to re-emphasize our backlog needs again this year. Indeed, while we have made some progress in reducing backlog, it is still one of our most critical financial issues. I must admit that, after meeting our core needs and funding some top priorities, there is not as much left to go toward backlog as I had hoped. This is particularly true of equipment needs. City departments requested $8.8 million in equipment needs. This funding proposed addresses less than 40% of these total requests. This proposed budget does include several items to address backlog. I am recommending the transfer of $1 million to the Capital Improvement Plan budget to be applied toward our facilities backlog. The budget also includes $1.4 million in computer equipment, primarily to ensure that the City is prepared to meet Y2K requirements. And we have created a fund of $1.5 million to provide for replacement of vehicles. And finally, this budget includes $100,000 of increased funding for demolition of structures that create a blighting influence in our neighborhoods. This recommendation supports the continuing Clean Community efforts and will help in reducing our inventory of structures that need removal. While this budget includes no tax increases, I am recommending rate increases in the water, sewer and stormwater accounts to help us address backlog. Although rate increases are not a happy topic for our citizens, I am pleased to note that the net increase for the average homeowner from these rate adjustments is approximately $1 per week. Water and Sewer System The proposed rate increase for water usage is from the current rate of $2.15 to a new rate of $2.50 per 1,000 gallons. The proposed rate increase for sewer is from the current rate of $1.49 to a new rate of $1.81 per 1,000 gallons. For the average residential user of just over 5,000 gallons of water a month, the average monthly increase is $1.83 for water and $1.68 for sewer. Even with the proposed increase, our water rate continues to be the lowest in Hampton Roads. [Figure 5]. Figure 5: Water Rate Comparison Chesapeake Norfolk Suffolk Virginia Beach Portsnlouth (proposed) 2.83 3.36 3.16 3.65 2.5O