Minutes 06/13/1967 - Laserfiche WebLink

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June 13, 1967 The increase in the Public Safety Department is the result of normal increment salary adjustments and a small increase in Traffic Control:in order to improve some of the street intersections with signalization. Recreation Department shows a substantial increase. However, this is caused by the transfer of budget appropriations under Recreation. The two Museums have been placed under Recr6ation along with Parks and beautification. There is also a reduction in the Department of Public Works in the amount of $109,000 as the result of these transfers. Under Non-Departmental there is an appropriation to support the Port and Industrial Commission until they start producing revenue which is anticipated to begin in September of 1967. This along with the increased costs in automobile insurance makes up the increase in this department. The increase in Debt Service is the amount necessary for the operating budget must r~ise for transfer to the Capital Fund to meet the payments on bo~ds and interest. This increase was created by the issuance of bonds for the Civi.c Center and the New ~4arine Terminal. The City will begin to recoup its costs from the Marine Terminal once it is in full operation. The School appropriation shows the largest increase as it is necessary to grant teachers raises in order that Portsmouth can remain competitive with the other municipalities in the Tidewater area. It is also necessary to increase salaMies for other school personnel to raise the scale to comply with Federal regulations. }~ile the school budget has increased some $600,000, it requires only $286,000 p~us dollars in local funds. In studying the budget it became understandably clear that new revenues would have to be found, because the budget was increasing some $1~500,000. It was necessary that about $500,000 in new funds be found as approximately $1,000,000 was available from current sources due to increase in revenue from local, State, and Federal Governments. After careful consideration it is believed that an additional $150,000 could be collected from delinquent taxes now that the City Attorney's office is fully staffed. Therefore, it was recommended that this revenue estimate be increased. It is also recommended that the Cigarette Tax be increased by an additional One cent per pack and the Nater rates increased by approximately 19%. This will give a balanced operating budget that provides no frills and o~y meets the minimum requirements to operate the city. The Capital Improvement budget is increased by $659,962. This represents the increase in the bond and interest payments on the recent bond issue of which a substantial amount will be recovered from the terminal operation as ex?lained previously in this letter. To finance this budget it is necessary to increase the Utility Tax by 5% to raise a portion of the needed revenue with the balance to be received ~rom the General Fund. There is an appropriation ~$RS0,000 for curbs and gutters as required and it is hoped that the additional revenue will also allow the sanitary sewer projects to continue. One new aerial ladder truck for the .Fire Department and $60,000 for Recreational improvements is included in this Capital Budget. The Water Department Budget is increased by $256,467. These funds are to be used to assist the operation of the General Fund as well as future capital expansion. The Sewage Disposal Fund has increased by $1,934. ~ile there is a substantial increase in cost of Chemicals due to requirements of the State liater Control Board the total increase is small, due to the reduction in the Debt Service. I s:ubm%t,~ herewith, the attached two ordinances and recommend that they be placed on first reading. These appropriate funds for the operation of the General Fund, Water Fund, Sewage Disposal Fund, City Garage, Law Library Fund and the Capital Imprmvement Fund." On motion of Mr. Knight, the following ordinance was approved on first reading, without dissenting vote: "~N ORDINANCE TO APPROPRIATE FUNDS NECESSARY FOR OPERATION OF THE CITY GOVERN~EN~ FOR ~ND DURING THE FISCAL YEAR BEGINNING JULY 1, 1967, ~MD ENDING JUNE 30, 1968" On motion of Mr. Barnes the following ordinance was approved on first reading, without dissenting vote: "AN ORDINPuNCE TO APPROPRIATE $3,174,313.00 FROM THE GENERAL CAPITAL IMPROVEMENT FUND 'FOR THE PURPOSES OF THE PURCHASE OF EQUIPMENT, ~{E IMPROVEMENT AND REPAIR OF VARIOUS FACILITIES, THE CONSTRUCTION OF DRAINAGE PROJECTS, THE RETIREmeNT OF BONDS AND THE PAYMENT OF DEBT SERVICES EXPENSES" 67-164 - "I submit the attached ordinance and recommend it be placed on first reading. This amends the Cigarette Tax ordinance by increasing the tax .01 cent per pack. This will raise the tax to .04 cents per pack in lieu of the present .03 cents. This is being mequested to finance the operation of the City Government for the fiscal year beginning July 1, 1967; and it is estimated that it will produce approximately $100,000 a year annually." On motion of Mr. Leary, the following ordinance was approved on first reading: "AN ORDI>'JkNCE TO ~ND SECTION 10-109 OF THE CODE OF TIlE CITY OF PORTSMOUTH, VIRGINIA, 1961, INCREASING THE TAX ON THE SALE OF CIGARETTES." 67-164 - "I submit the attached ordinance and recommend it be placed on first reading. This amends the ordinance on the tax on the sale of Utility services from 15% to 20%. This will apply to the first $200 of purchases in any one month an al:l commercial accounts; and to the first $6.00 on residential users for gas service and $12.00 for residential users for electrical service. These additional funds are being requested to finance the Debt service under the Capit~l I~mprovement .Program. This will underwrite the financing of the new Marine Terminal and it is anticipated that any surplus funds available will be used for new sewer construction and still obligate $250,000 annually for the Curb and Gutter Program." On motion of Mr. Barnes, the following ordinance was approved on first reading without dissenting vote: