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projects until 1969. The annexed territory wgs put on the City's real estate books at
<br />the Chesapeake assessment ratio of 35% in 1968 as part Of the annexation court order,
<br />This property could not be assessed at the Portsmouth ratio of 75% until 19§9. This is
<br />pointed out because the City's bonded debt limit is based on 18% of the assessed real
<br />estate value; therefore,, it appeared to be sound financial planning to delay the proposed
<br />bond issue until after January 1, 1969, in order toimprove our'bonding limit prior to
<br />the issue and maintain an "A" rating in the bond market.
<br />
<br /> In 1969, the Federal Government proposed, a bill that would remove the tax-exempt
<br />status of municipal bonds causing interest rates to rise and maturity schedules to shorten.
<br />The City was in the position where we had to issue the bonds because State law at that
<br />time would not permit local financing (Iocal banks) of bond anticipation notes for more
<br />than 2 years or an interest rate that would exceed 6%. In compliance with State law,
<br />the City negotiated an interest rate of 5.9983%, with a maturity schedule of 12 years
<br />for the $10 million and issued the bonds on December 1, 1969.
<br />
<br /> The procedure for capital projects in the City has been to finance the projects loca11¥
<br />until a substantial amount of the work has been completed and allow time to analyze the
<br />market for the most opportune time to sell bonds. This procedure was used during the
<br />years outlined above, but due to increased.bonding for development of port facilities,
<br />annexation debt and normal capital programs, the interest on the debt in local banks and
<br />principal payments-on the added issues exceeded our revenues and required large sums of
<br />General Fund dollars robe transferred to Capital Improvement Fund for retirement of debt.
<br />There was not enough.revenue in the General Fund for 'transfer; therefore, the deficits
<br />beganto accrue. Once the. deficit was started, it compounded itself because the deficit
<br />had to be financed through local banks.
<br />
<br /> I have presented all this background'informationas-justification for my recommendation
<br />that we use surplus revenue inthe General Fund, created by revenue sharing', for the capital
<br />deficit. This recommendation will eliminate any requirement for real estate tax increase
<br />in the near future for payment on debt service for capital projects already completed."
<br />
<br /> On motion of Mr. Smith,~and seconded by Mr. Johnson, the'following ordinances were
<br />apppe~i4 an~filstreading, and by the following vote:
<br />
<br /> "AN ORDINANCE XO APPROPRIATE $1,215,858.00FROM.THB FEDERAL REVENUE SHARING
<br /> TRUST FUND AND TO ALLOCATE SAID FUNDS FOR THE OPERATION OF PUBLIC HEALTH
<br /> PROGRAMS, PUELIC SAFETY AND RECREATION."
<br />
<br /> "AN ORDINANCE TO APPROPRIATE $1,.213,858.00 FROM THE GENERAL FUND FOR THE
<br /> TRANSFER OF SAID SUM[ ~IIL THE CAPITAL IMPROVEMENT FUND FOR RETIRF3tBNT OF DEBT
<br /> SERVICE AND RBPLACt~I~OF EQUIPMENT."
<br />
<br />Ayes: Early, Holley, Johnson, iing, Smith, Wentz, Barnes
<br />Nays: None
<br />
<br /> 72-$21 - "I submit the'attached ordinance and recommend it be placed on first reading.
<br />This appropriates $18,S00 for traffic signals.
<br />
<br />These
<br />
<br />funds are to be used to signalize three intersections.
<br />
<br />Cedar Lane and West Norfolk Road
<br />Airline Boulevard and City Park Avenue
<br />High Street and Dogwood Drive
<br />
<br />$10,500
<br /> 4,000
<br /> 4,000
<br />
<br />They are as follows:
<br />
<br />$18,500
<br />
<br /> This will provide signalization for these intersections, but'does not include any
<br />street improvements to establish turning lanes, etc.
<br />
<br />· There is designated in the Capital Improvement Program funds during 1972-73 for the
<br />installation of traffic signals.'
<br />
<br /> On motion of Mr. Smith and seconded by Mr. Johnson, the following ordinance was approve~
<br />on first reading, and by the following vote:
<br />
<br />"AN ORDINANCE TO APPROPRIATE $18,S00.00FROM THE CAPITAL IMPROVEMENT FUND
<br />TO PAY FOR THE PURCHASE OF~TRAFFIC.SIGNALS.'
<br />
<br />Ayes: .Early, Holley, Johnson, £ing, Smith, ~entz, Barnes
<br />Nays: None
<br />
<br /> 72-522 - "I submit the attached ordinance and recommend it be placed on first reading.
<br />-This appropriates $102,000 in the Capital Improvement budget for engineering services
<br /> for various sewer projects. It covers the design of the sewers and inspection services
<br /> during construction.
<br />
<br /> The following projects are being designed by an outside engineering firm and the
<br />cost is $59,500:
<br />
<br />Siesta Gardens, Section IV - Sewers
<br />ttatton Point - Cardinal Lane - Sewers
<br />Greenwood Drive Pumping Station - Rehabilitation
<br />DeEalb Avenue Pumping Station - Rehabilitation
<br />Camden Avenue Pumping Station - Rehabilitation
<br />
<br />
<br />
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