Minutes 04/21/1992 - Laserfiche WebLink

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April 21, 1992 The Portsmouth City Council firmly recognizes that our citizens expect and deserve financial integrity -- the cornerstone of which is a balanced operating budget. No longer is there a belief that the solution to problems must always come in the form of more staff and greater public spending. The transition to our new philosophy of a smaller, more efficient public payroll requiring a smaller public expense has been difficult because for to~any years our orientation was based on habit rather than on a coherent, strategic method. Our focus is now different, and we all realize we can still grow, prosper, and serve while actively controlling our spending. Specifically, the Workforce Management ~nitiative has reduced the workforce by 77 positions translating into an annual savings of more than $1.5 million. Another example of financial management included the refunding of our bond issues for 1975 and 1985, which will result in a savings of more than sl.1 million over the next 13 years. Locally, the national recession is most manifest in the collapse of the real estate market. Hit hardest has been the commercial market followed by residential properties. Many commercial and residential properties are worth less than they were three years ago. Some commercial real estate values have dropped 30% to 50%. Our citizens are not spending on items of taxable personal property. Because of the uncertainty of our economic times, citizens have decided not to spend but to remain on the "economic sidelines" until better times return. What this means for Portsmouth is that our revenues, which make expenditures possible, continue to decline. Accordingly, I directed City department heads to cut expenditures by 5%. I am pleased to report that, almost without exception, department heads responded with both operating cuts and elimination of vacant positions -- all making a real estate tax hike unnecessary in this proposed budget. Excluding salary increases, appropriations in the proposed budget are more than a quarter of a million dollars less than last year. All this was accomplished while allowing our City employees a much deserved pay increase. The secret to success has been our steadfast determination to fund services and pay increases by restructuring rather than expanding resources. I believe that there are clear signs that the worst of the recession is now past -- that's good news. The bad news, however, is that the recovery will be slow. We have, as a responsibly managed city, positioned ourselves wisely in that we will continue, to concentrate on value added activities and eliminate waste. Accordingly, we are positively positioned to capture the full benefit of the upcoming economic recovery. EDUCATION Last year, when I was introduced by Dr. Benjamin Troutman, Deputy Superintendent of Schools, at the Annual School Convocation, he said,"...our economic times are abysmal, but one man stepped forward to help our educational system by recommending the full funding of the recommended School Budget." This year when education financial fortunes are much improved, I am pleased to borrow from Dr. Troutman's words and say that one man has again stepped~forward to hetp our City. That man is Dr. Richard Trumb~e~ Superintendent of Schools. In private conversations, Dr. Trumble has agreed to.recommend to the School Board that their funding request be trimmed by an additional 3%. I thank the Superintendent for his support of our City and trust that the School Board will be supportive of his intended recommendation, which will not lessen the Board's ability to give educators and staff their 5% pay increase, and at the same time allow for employment of additional teaching staff. This financial accommodation by the Superintendent has been made possible by increased state funding of more than $6 million.