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Jtme 9. 1970
<br />
<br /> Provision also is made for u. niforms for the labor forces on a participating basis. The employee pays S0%
<br />of the coSt.
<br />
<br /> Contractual services haveincreased by $127,009. However, a substantial portion of the increase is offset
<br />by revenue which covers data processing charges and radio maintenance. In reality, this is a bookkeeping item.
<br />
<br /> Due to increases ,in cost of Social Security, retirements and additional street lighting, our Fixed Charges
<br />reflect an increase of $281,004.
<br />
<br /> There also is an increase of $182,471 in material and supplies, including $100,000 to be utilized for re-
<br />pair of streets due to winter damage.
<br />
<br /> Debt Service costs reflect an increase of $1,102,459 due to the bond issue floated in December, 1969, ~nd
<br />the unfavorable bond market which prevailed during the past year. The bond market has created higher interest
<br />rates and a requirement that the principal be paid in shorter time. This change is reflected in the 1970-71
<br />budget.
<br />
<br /> Welfare costs have doubled because of changes in eligibility requirements for recipients by the Federal
<br />and State governments. There are now more people eligible and benefits for recipients are larger. While this
<br />budget category was incre~ed $1,806,255 and substantially inflates the City's 1970-71 budget over the current
<br />one, the above amount does not represent wholly local cost. The to~A1 cost increase to the City is approxi-
<br />mately $300,000. ~
<br />
<br /> Aid to Dependent Children requirement shows an increase of $1,540,090. Aid to the Permanently-Totally
<br />Disabled will increase $114,750 and Day Care and WIN Services, new program incorporated in Wel.fare, will
<br />quire $77,600.
<br />
<br />Other categories reflecting increases are:
<br /> Social Security payments by the City
<br />
<br />$40,000
<br />
<br />City's 41.885% of cost for increase in Health
<br />Department budget
<br />
<br />40,205
<br />
<br />Additional street lighting
<br />Repair to fire stations
<br />
<br />20,000
<br />
<br />32,250
<br />
<br />Maintenance of new Civic Center
<br />
<br />53,500
<br />
<br />There is aa increase of $22,000 in insurance, covering a three-year premium on the Civic Center.
<br />
<br /> Also included in the budget draft is a new $11,500 item for the Portsmouth Community Mental Health
<br />Association Board. There will be joint participation between the City and Maryvi~w Hospital, with the State
<br />matching ftulcls supplied.
<br />
<br /> Since the preparation of this budget, tke Mental Health Board has requested a change in appropriation to
<br />$16,670 to enable the Mayor's Council on Drug Abuse to carry out its functions. The Drug Abuse Council has
<br />submitted a budget reques, ting $14,$40. However by including its budget in that for mental health, additional
<br />State funds can be obtained, thereby, reducing the local cost. Should the City Council desire to include this
<br />appropriation, it will be necessary to transfer $2,000 from the Utility Fund to the General Fund.
<br />
<br /> In the Public Utility Fund, other than an increase in debt service for retirement of water bonds, there
<br />are no substantial increases in water operations. The sewer budget provides $20,000 for replacement of pump
<br />equipment at the Sewage Treatment Plant, as well as additional funds for debt retirement.
<br />
<br /> It is necessary to replace a 2,500 gallons-per-minute pump at the Sewage Treatment Plant with a 3,500
<br />~allons-per-minute pump. The present pump is inadequate during maximum rates of flow and, at least ten times
<br />annually, it is required that existing pumps be in continuous operation 72 hours to restore the system to
<br />normalcy.
<br />
<br />Estimated expenditures in the 1970-71 budget, by funds, are:
<br />
<br />G~meral Fund
<br />
<br />$34,285,686
<br />
<br />City Garage Fund
<br />
<br />580,111
<br />
<br />Capital Improvement Fund
<br />
<br />5,902,844
<br />
<br />Utility Fund
<br />
<br />4,109,081
<br />
<br /> Local revenues are expected to increase approximately $920,000 through normal economic growth. State and
<br />Federal revenues are estimated to increase approximately $2,225,000.
<br />
<br /> Since the increase in expenditures is estimated at approximately $5-1/2 million, the City must provide
<br />about $2,555,000 over and above normal growth funds and the revenues expected from other agencies.
<br />
<br /> To meet our increased costs, it will be necessary to adjust payment dates on certain taxes and revise
<br />rate structures on some others. To a¥oid the necessity for increasing the real estate tax (which would require
<br />a 69¢ addition to the present rate to meet expenditure reqairements) the following is recommended:
<br />
<br />Move the payment date on persomal property taxes from December to June. This would
<br />be for taxes normally due in December, 1971, providing a "windfall" for this budget
<br />year. Since the State will be taking over certain welfare categories in January,
<br />1972, we can anticipate some relief in the 1971-72 budget. The recommended change in
<br />property tax due date is estimated to produce $1,750,000.
<br />
<br />
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