Minutes 04/01/2008 - Laserfiche WebLink

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April 1. 2008 At a Called Meeting of the City Council on Tuesday, April 1, 2008, there were present: Mayor James W. Holley III, Vice Mayor Marlene W. Randall, William E. Moody, Jr., Stephen E. Heretick, Elizabeth M. Psi mas, *Ray A. Smith, Sr., *Douglas L. Smith, City Manager Kenneth L. Chandler. 08 - 169 - The following call for the meeting was read: "Please attend a Called Meeting of the City Council to be held in the City Council Chamber, 801 Crawford Street, 5:00 p.m., Tuesday, April 1 , 2008 for the purpose of the proposed Operating and Capital Improvement Plan Budgets. In addition, you may consider a motion to go into a Closed Meeting. By order of the Mayor." 08 - 170 - The following item was discussed in Public Work Session: 1. Presentation of Proposed Operating Budget and Capital Improvement Plan by Kenneth L. Chandler, City Manager I hereby submit for your consideration and approval the Proposed Annual Operating Budget and Capital Improvements Plan for FY08-09. We expect FY09 to be among the most economically challenging years that Portsmouth has faced in recent times. As we prepare to address the needs of FY09, we continue to manage the projected $5.5 million revenue shortfall in our current fiscal year budget in addition to the use of $3.9 million of fund balance that was used last year to balance the budget. Through Council and Manager collaboration our FY09 preparation assumptions considered: 1) Post FY08 Education funding, 2) Public Safety and General Service employees, and 3) tax relief. Council asked for a budget that provided for additional compensation to public safety personnel while sustaining our funding for schools. You also asked for consideration of real estate tax rates that produced revenue neutral, five cents and three cents reductions. At the date of this submission we have seen three other jurisdictions in Hampton Roads proposed budgets with no tax decreases. This budget proposes a five cents real estate tax rate reduction which will result in a leaner, more efficient, right-sized organization designed to provide mission-critical government services. Revenues In preparing general fund revenue forecasts, realistically conservative revenue projections were used. The downward-trending national and state economies were taken into consideration and we are bracing for a declining local economy as well. Moreover Portsmouth remains the fourth most fiscally stressed City in the Commonwealth. The real estate tax rate was reduced to $1.21, the boat tax rate to one cent, and Planning Department fees were increased modestly. All other general fund tax rates remain the same. Rates for utility and other enterprise funds will be discussed later in this document. Expenditures Public Safety In strengthening our commitment to public safety, this budget includes a 5% increase in compensation for sworn personnel in the combined form of market increases and compression adjustments. We also included an additional 3% compensation for the Sheriff's Deputies as well as the State mandated requirement of $1.75 million for Deputies inclusion in LEOS.