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<br />December 12. 2006
<br />
<br />Motion by Mr. Moody, and seconded by Mr. D. Smith, to adopt the following
<br />ordinance, and was adopted by the following vote:
<br />
<br />"ORDINANCE ACCEPTING A GRANT IN THE AMOUNT OF $6,600 FROM THE E. C.
<br />WAREHEIM FOUNDATION AND APPROPRIATING SAID AMOUNT IN THE FY 2006-
<br />2007 GRANTS FUND BUDGET FOR MOTORCYCLE COMMUNICATIONS
<br />EQUIPMENT FOR THE SHERIFF'S DEPARTMENT."
<br />
<br />Ayes: Heretick, Moody, Psi mas, Randall, D. Smith, R. Smith, Holley
<br />Nays: None
<br />
<br />06 - 571 - Adoption of an ordinance to amend Chapter 35 of the Code of the City of
<br />Portsmouth, Virginia (2006) by amending Sections 35-159, 35-163, 35-164, and 35-173
<br />thereof to increase the eligibility of elderly and disabled persons for real estate tax relief.
<br />Vision Principle: A Robust and Prospering Economy.
<br />
<br />Background:
<br />. To qualify for either of the City's Tax Abatement or Tax Freeze Programs, a
<br />citizen must be 65 years of age or older or have a permanent/total disability, plus meet
<br />the applicable income and net worth eligibility and tax exemption threshold levels.
<br />. The income eligibility and tax exemption threshold levels for these programs are
<br />currently established at limits ranging from $15,000 (minimum) to $20,000 (maximum)
<br />and $42,500, respectively.
<br />. The net worth eligibility and tax exemption thresholds levels for these programs
<br />are currently established at limits of $67,500 and $160,000, respectively.
<br />. In total, $1.935 million was included for real property tax relief in the adopted FY-
<br />07 Budget and $1.445 million was included in the adopted FY-06 Budget.
<br />
<br />Discussion:
<br />. In FY-07, it is recommended that the income eligibility and tax exemption
<br />threshold levels be revised for both of these programs from the current limit ranging
<br />from $15,000 (minimum) to $20,000 (maximum) and $42,500, respectively, to a limit
<br />ranging from $21,000 (minimum) to $30,000 (maximum) and $50,000, respectively.
<br />. In FY-07, it is also recommended that the net worth eligibility and tax exemption
<br />threshold levels be revised for both of these programs from current limits of $67,500
<br />and $160,000, respectively, to $75,000 and $175,000, respectively.
<br />
<br />Financial Impact:
<br />. The FY-07 tax relief program revisions are preliminarily estimated to cost $3.4
<br />million in FY-08.
<br />
<br />Staff Recommends:
<br />Adoption of proposed ordinance. Vision Principle: A Robust and Prospering Economy.
<br />
<br />Next Steps Following Council Action:
<br />. The CFO will ensure the financial impacts of these changes are included in the
<br />budget development process for the FY-08 Operating Budget.
<br />. The Director of Social Services will ensure the programmatic impacts of these
<br />changes are properly administered during the eligibility process for the FY-08 Real
<br />Estate Tax Relief Program.
<br />
<br />Motion by Mr. Heretick, and seconded by Mr. Moody, to adopt the following
<br />ordinance, and was adopted by the following vote:
<br />
<br />"ORDINANCE TO AMEND CHAPTER 35 OF THE CODE OF THE CITY OF
<br />PORTSMOUTH, VIRGINIA (2006) BY AMENDING SECTIONS 35-159,35-161 (b), 35-
<br />163, 35-164, AND 35-173 THEREOF TO INCREASE THE ELIGIBILITY OF ELDERLY
<br />AND DISABLED PERSONS FOR REAL ESTATE TAX RELIEF."
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