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June 12, 1973
<br />
<br /> With~o~t resolution, this Commission disc~ssed real estate tax relief for the elderly,
<br />and the possibility of substituted revenue from activities not now sharing the burden of
<br />real estate tax.
<br />
<br /> In its review of the existing Machinery and Tool Tax, the Commission recommends a re-
<br />duction in the machinery and tool assessment from 75% of depreciated value, an~ machinery
<br />and tool tax from $3.00 per $100 of assessed value, to an assessment of 40% of original
<br />cost at a rate of $1.00 per $100 assessed value, which is the rate that puts it back to
<br />the 1969 level.
<br />
<br /> This recommendation was based on the detrimental effect of the existing tax structure
<br />on enticing new industry to the City, and what was felt to be an unfair burden on existing
<br />local industry~ The expected reduction in revenue would be approximately $98,400.00.
<br />This adjustment would place Portsmouth in a favorably competitive position with other
<br />Tidewater cities.
<br />
<br /> As pointed out earlier in this report, requests from City departments were curtailed
<br />by nearly a million dollars, and the School Board's request was curtailed by a like amount
<br />in the proposed budget. The reason for such curtailments is understandable in view of
<br />available sources of revenue; however, we must point out the following:
<br />
<br /> We noted that with projected revenue and expenses that approximate $39 Million, there
<br />exist only an excess revenue in the amount of $20,000.00.
<br />
<br /> With the projected increase in water rates, which we concurred with, revenue is pro-
<br />jected to increase $740,000.00. Ail of this increase is applied to offset expenditures,
<br />and nothing is allocated to the Water Department itself to offset rising costs and re-
<br />serves for depreciation.
<br />
<br /> As pointed
<br />there existed a
<br />visions are reflected in the
<br />except for the projected exc
<br />at that time strongly recom~
<br />ficit.
<br />
<br />out in the City's last Annual Audit for the year ended June 30, 1072,
<br />deficit in the General Fund in the amount of $1,012,59§600. No pro-
<br /> 1973-74 budget to affect any curtailment in the deficit
<br /> ess revenue ~f $20,000.00. Frederick B. Hill and Company
<br /> ended that a source of revenue be obtained to fund this de-
<br />
<br /> Rising costs are a cert
<br />to obtain bids on gasoline a
<br />increases are expected.
<br />hot mention other increased
<br />
<br />ainty as the result of the energy crisis. The City is unable
<br />nd fuel supplies for next year, and when they come, material
<br />ctrical costs are expencted to rise substantially. This does
<br />and spiralling costs as the result of inflationary trends.
<br />
<br /> Your School Board has unfunded
<br />pact funds for the next fiscal year.
<br />the next fiscal year.
<br />
<br />requests now, and further decreases are apparent in im
<br /> A known decrease of overS~00,000.00 is a fact for
<br />
<br /> As the resul~tof the foregoing and other need of our City, it is
<br />of this Commission that real estate tax rates be increased from $2.25
<br />assessed. This would provide approximately $800.000.00 in additional
<br />
<br />the recommendation
<br />to $2.50 per $100.00
<br />revenue.
<br />
<br /> Until such time
<br />in 1974, these funds
<br />meet the need of our
<br />
<br />as a new appraisal and assessment can be attained, which is expected
<br />are badly needed to improve the financial condition of our City and
<br />School Board and City departments."
<br />
<br />~he following spoke relative to Budget for 1975-7~ Fiscal Year-
<br />
<br />Ernest E. Prillman ~ 4608 Hunts Point Drive
<br />Richard Blottenberger 3300 Detroit Street
<br />Thomas J. Worrell ~7 Eustis Street
<br />Herman W. Hess, Jr. 4700 Cinnamon Teal Court
<br />Dr. Beverly Bryant 55~ ~reenfield Drive
<br />Glenn Yates 400 Washington Street
<br />Mrs. William T. Mercer 42~ Rockbridge Road
<br />George R. Walker 1749 Spratley Street
<br />Charles Brown
<br />Mrs. Marlyn Falk - 149 Tyler Crescent
<br />~ames Jenkins 3103 Brighton Street
<br />Mrs. Emily Seed ~10 Harris Road
<br />RBymond Turner - 526 Bunche Court
<br />~. Walter Lewis 3521 Arlington Place
<br />
<br />No one spoke for or ~gainst the Amusement Tax Ordinance (Bingo).
<br />Phblic Hearing was concluded at 9:30 P.M.
<br />
<br />The following reports from the City Manager were read:
<br />
<br /> 73-207 "I submit herewith the proposed operating budgets for the City of Portsmouth
<br />for fiscal year 1973-74. The budgets cover the General, Utility, City Garage/Virginia
<br />Public Assistance, Law Library, Senior Citizens, Mental Health Board and Debt Service
<br />Funds expenditures. '
<br />
<br /> Projected spending in the General Fund budget totals $38,888,490, a 9.5% increase
<br />over the current year. $18,869,355, or 48.5% is allocated for education and $2,57~,517,
<br />or 6.5%, for Debt Service. The balance, $17,444,618, or 4S%, is required to finance
<br />all other municipal operations. .
<br />
<br />
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