Minutes 01/12/1971 - Laserfiche WebLink

Home Browse Search

71-7 - "Z submit the attached contract between the U. S. of America and the City of Portsmouth and re- co--nd that the proper City officials be authorized t~sign. This contract covca~ the housing of federal prisoners in the Portsmouth City Jail. This pro~_des for the Federal Government to pay a rate of 85.61 per day for each prisoner held. These prisoners will be accepted only if there is space available in the jail. The contract is for a period of three years but can be. modified or cancelled upon 30 days' prior notice." I~btion of Mm. Kir~ to concur in the recormendation of t_he City M~nager was adopted~ without dissenting rot e. 71-8 - "I subn~_t the attached ordinance and recommend it be placed on first rea ~ding. This amends the elect_wicai code pertaining to the sale of electrical appliances and devices. This will require that all such electrical items m~t have the Underwriters' Laboratories, Inc. seal of approval to be eli~ble for sale in the City of Portsmouth. This has been recommended by the Electrical Inspection Division of the City as a safety precaution pertaining to the sale of electrical ~opliances and devices." Motion of Mr. Johnson to place the following ordinance on first reading: "~2~ ORDINANCE TO ~,~ND THE CODE OF ~ CI?Z OF P0~SMOLri~.H, VIRGINIA, 1951~ ~ }~DING T~ A ~ SE~I~ N~E~D 9-11.1, PR~ING ~ S~ A~ ~E OF ~ E~C~ M~T~, D~S~ ~PL~S ~ EQL~P}~." Motion of Mr. Smith (I) to amend the ordinance by adding "to become effective January 1, 1972" was adopted without dissenting vote. Vote being taken, the ordinance as mmended, was adopted, and by the following vote: Ayes: Holley, Johnson, King, Smith (I), Smith (R), Turner, Barnes Nays: None 71-9 - "I sobmit the attached resolution and recomend its adoption. ~his requests the State to im- mediately enact legislation to provide financial assistance ~o local govel~nments. We are all a~,~are of the efforts to obtain additional revenues from the State by the "Urban 12" of v~ich th~ C~Py of Portsmouth is a member. The~v have appeared before the Joint Senate Finance and House ARpropriation Com~.~ttee and presented the cities' problems. ~aile they spoke of the firmmncial plight f~n general of the citie~ and counties of Virginia, I would like to report ~o you on Portsmouth's financial problems with the 1971-72 budget. The City's current operating budget amounts vo $34,285,686. During ~his curr~nt year, we have issued mhd ~ill issue additional bonds that will include financing for the new Hodges M~nor High School. These bonds will increase the next fiscal budget by $712,000. There is now provided Dy ordinance pay step increases for Fire and Police and hourly employees. This, along ~rlth the City's share of step increases, provided for school teachers, will increase the budget some $335,000. ~nis means we can foresee a budget Zncrease o~r $1,000,000 without any consideration for inflation that has occurred in the cost of materials and supplies nor any general salary increases for employees. On the revenue side, we cttrrently estimate the City will receive $34,288,320 this fiscal year; however, this includes a Personal Property Tax windfall of $1,750,000. We moved the payment of Personal Proper~j Taxes from December to June in order to balance the curment budget; therefore, this reduces next fiscal year's re- venues by the above amount. On J~nuary 1, 1972, the City will make its final loss of revenue paym~n~ to Chesapeake trader the annexation decree. Th~ final payment will be $275,000 rather than $500,000 which will re- sult in a reduction in expense of $225,000. Considering the revenue and expendittu~es as of now the City shows a revenue gap of $2, 525,000. ~is means that additional revenue or a reduction in service vrill have vo occor for the nex~ fiscal year if steps to helm the localities a~e not taken by the C~neral Assembly. W~th property t~xes at the breaking point, to increase them too high can d~ive still more people and businesses from the City. Ail of the gimmicks and all other tax sources have been raised until thereis no other avenue except to turn to the State and request they assume their fair share of the problems in solving the cities ' financial plight ." Attached letter from R. T. Williaras, Assistant F~nance Director: "The demands for new and expanded programs, especially capital improvements, are outstripping our revenue sources. In the past decade, revenues from existing sources have increased at the rate of approximately 3% per year while the costs of persons~ services, s~oplies, materials and equipment req~mired by the city to oer- form its _f~nctions have.iincreased at a rate of approximately 6% ocr year. The end result has been that it is becoming i~ ossible to _maintain the city's present level of service and fund new or capital ~rograms required to meet the changing social and physical needs of our city. Analysis of otu~ revenue receipts and expendittu~es for the first six months of 1970-71 indicates that the city can provide the present level of se_~_ces during the b-lance of this fiscal year. However, it will not be able to do so beyond June 30, 1971 unless the priority for city operations is changed or new revenue pro- ducing meastu~es are developed and enacted. Unless the latter course is taken, it will be necessary to reduce the quality amid quantity of se~rices that our citizens have come to expect. The revenue forecast for fiscal year 1971-72 is not optimistic. This year the city was able to obtain additional revenue by advancing Personal Property ahead six months providing a $1,750,000 dollar windfall. We were able to meet the ch~lenge of a high inflation budget ~ncrease last year but there is no way to meet those ~_ncreases in 1971-72 without new revenues."