Minutes 06/11/1974 - Laserfiche WebLink

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3O0 In five particular administrative positions, including the two Assistant City Managers, the CPM Director, the Personnel Director, and the City Attorney, I have recommended substantial salary changes. It is an effort to develop the capability of performance analysis, capital and operating program evaluation, an improved system of labor relations and personnel management, and to attract and-hold a qualified legal advisor. Development of a "Tehm Management" approach is achievable with these adjust- ments~ 6. Many expenditures are increased by forces totally beyond our local control. As examples, the cost of gasoline, even with a mandated 15% curtailment in gallons consumed, is expected to almost triple the current year's expenditures for the coming year. Electric energy costs will rise sharply be cause VEPCO has indicated a desperate need to adjust our rates which currently pay them less than their fuel costs for producing electric energy. Retirement costs reflect a tremendous increase of $594,450 or 44.7% for the coming year. Actuaries have calculated thatthese increases are required in order to meet our obligations to employees already retired and to provide for an increase in the cost for current employees. These increases do not provide for any improvement in retirement benefits. 7. An item in Non-Departmental Miscellaneous Expenditures of $220,000 is recom~ mended as a Budget Contingency (Emergency) which reflects an attempt to build working capit~l for the City over a S-year period to approximately S% of all other General Govern- ment expenditures. It is most important that we work toward operating Portsmouth municipal services on a business-like basis which demands having working capital to cover large unforeseen expenses and to minimize short-term borrowing, thereby reducing interest costs. This budget, as recommended, does not provide for any substantial improvements in municipal services. It will maintain a reasonably adequate continuation of municipal services for our cons~er-~--~nder the c~nstraint's of inflation, the' ~isis, ~ ~le--d~-b-~e~s~e~--~roducts, and ~certain Feder-~T ~--7-T-~e combinati of recommended 'increased real estate taxes an~--~ser charges~ distrzbute the financial burden to include non-homeowners so that the impact on the property owner is at a minimum. The estimated revenues include $890,000 of Federal Revenue Sharing, the same amount which was used in last year's final budget. If you adopt the measures recommended for the revenue structure as proposed, it will be a balanced budget in all funds. These budget recommendations are the result of cooperative effort on the part of your Department and Division Heads, particularly the Assistant City Manager for Finance~ and Staff Services, and me, and we are all available to discuss the recommendations in whatever depth you choose. The responsibility for enacting tax levies and budget appropriations by ordinance rests with City Council and I urge you to consider the future objectives of municipal services which depend on this budget. Your staff will, to the best of improvement in giving public service cOSt." its ability, continue to strive for efficiency and to the citizens of Portsmouth with the least possible Approximately 825 people were present at the Public Hearing and forty-three citizens spoke in reference to both items. (See Exhibit 74-228) Mr. Thomas J. Werrell,519 Idlewood Avenue, presented petition with 5,716 signatures concerning budget for the 1974-75 school year. Ms. Audrey Fisher, 4809 West Norfolk Rdad, presented petition with 807 signatures concerning budget for the 1974-75 school year. The Public Hearing ended at 11:55 p.m. The City Manager presented the following ordinances message for the FY 1974-75: as recommended in ~he budget 74-229 - Mr. Ira E.~Price, Chairman of Budget Subcommittee, Municipal Finance Commissf made the following presentation: "The Municipal Finance Commission has met on numerous occasions for purposes of reviewing in detail the prpposed 1974-75 budget. At a special meeting on May 291 1974, this Commission concluded its review. Original requests from the various City Departments and School Board exceeded pro- jected revenue (without tax increases) by over 6 million dollars. After thorough review by the Finance Departmant these requests were cut approximately 3.7 million dollars. As the result of our study we feel strongly that further reductions would serimusly hampter the level of services and standards of education desired and required for the citizens of Portsmouth. U~fortunately, our tax base does not permit the level of services reconumended by various departments of the City. Even with the reconum~nded increases in taxes and fees it is still necessary that approximately $890,000 of Revenue Sharing be used to balance the budget. It is disturbing to this Commiss&on that it is necessary to utilize Revenue Sharing Funds in this manner, but we see no alternative. Use thereof is consistent with )n