Minutes 03/19/1996 - Laserfiche WebLink

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March 19,:1996 In Mayor Webb's 1996 "State of the City" address, she compared this relatively new model of local goverrnnent to "barn raising" activities in the early days of this country. When a farmer needed a barn~ more than individual effort was required. People from miles around would come and contribute what they could: sawing logs, building the frame, hauling materials and providing meals. Together, the community raised a barn. Later, when someone else needed a barn, neighbors again helped and everyone benefited. Cities can no longer afford to function as "vending machines" in which citizens put in their money, pull a lever and eventually receive a service. The changes occurring in public safety clea~ly demonstrate a trend toward the barn-raising model. The Mayor used 911-emergency assistance as an illustration of the new model. Historically, a citizen called 911 (the lever) and in response a police car was dispatched (the service). The response was generally after the fact, and the police officer could do little to impact the Situation. With today's approach, the NEAT program's Neighborhood Impact Officers are working proactively with citizens in their neighborhoods to yield solutions to public safety problems. To build a strong sense of community responsibility and pride, it is important to take the mystery out of the inner workings of City Hall and to work hand-in-hand with our citizens. The discussions that follow outline the specifics of the operating budget and its role in improving Portsmouth's future. ECONOMIC AND FINANCIAL STRENGTH A stable financial condition is a priority goal of the City Council. Strong finances increase our capacity to provide enhanced services to citizens, to attract investment to the city and to fund desired initiatives. During the February, 1996 City Council retreat, specific criteria were established for measuring our financial strength. Defining where the city should be financially in the next five to ten years was a critical step for developing the plan towards achieving financial goals. Fund Balance One measure of fiscal health is the city's fund balance. The fund balance is the accumulation over time of revenues in excess of expenditures. A sufficient fund balance is essential for protection against the peaks and valleys in cash flow that arise due to the cyclical nature of the city's revenue collections and debt service payments. It is also a key financial indicator monitored by bond rating agencies. Most importantly, the fund balance provides the only resource available to the city, except for borrowing, for addressing unanticipated emergencies. The fund balance increased in FY95 by approximately $1.5 million. The FY95 increase, coupled with the budgeted additions in FY96 and FY97, moves the accumulated fund balance significantly closer to reaching the goal of an $11 million balance by the end of FY99. With continued focus on strengthening our financial capacity, this goal is attainable.