Minutes 04/01/2008 - Laserfiche WebLink

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April 1. 2008 Other Expenditures Real Estate Tax Relief for Elderly and Disabled property owners is budgeted at $2.3 million. The golf fund is expected to run a $600,000 deficit in FY08 and a $1.1 million deficit in FY09 and as a result general fund subsidies are required in both years. Debt service payments for FY09 are $26.6 million. The annual required contributions for City pension plans and VRSILEOS amount to $22.6 million. GASB 45/0PEB funding will be in the form of a contribution to an Internal Service Fund rather than an irrevocable trust fund. GASB 45 only requires that the liability be reported, not funded. Particularly in unstable times, and since most other localities in the Commonwealth have not established trust funds, it is not fiscally responsible for us to set aside millions of dollars now for what may become obsolete if National Health Care were to become a reality. Balancing the Budget We have commissioned a management study in order to structure the best workforce management and reduction strategy. This is an essential element in attaining a balanced budget and to achieve the necessary savings of $7.1 million as a result of this tax rate reduction. We will continue into FY09 the hiring freeze for other than public safety personnel and mission-critical positions. We have programmed an elimination of approximately 205 general fund positions in addition to the 16 positions already eliminated in the current fiscal year. Approximately 70 of the 205 positions that will be deleted are those positions required to attain the salary savings that in recent years was achieved solely through attrition. We believe our more conservative approach to balancing our budget is essential, particularly during periods of economic uncertainty. Omissions Staff has identified programs of Council interest targeted for funding. A Key Elements section has been developed to aid Council's review of such programs and services in an effort to determine the best level of program service delivery. Utilities The Department of Public UtilitieslWorks strives to deliver quality environmental services while maintaining competitive and affordable rates. The overarching theme in the Fiscal Year 2009 budget is continuing progress in maintaining, renewing and rehabilitating Portsmouth's aged utility infrastructure in the face of rising operational costs and ever more stringent environmental regulations including the Regional Sanitary Sewer Overflow (SSO) Consent Order and reissuance of Portsmouth's stormwater permit. Portsmouth's utility systems represent a substantial investment and are among our communities most valuable assets. Safe, reliable utility systems are central to: · Our health and safety · Our quality of life · Our communities vision of prosperity The Fiscal Year 2009 budget includes increases In the residential water rate from $3.65/1,000 gallons to $3.94/1,000 gallons; in residential sewer charges from $2.86/1,000 gallons to $3.09/1,000 gallons and in the stormwater fee from $5.50/month per equivalent residential unit (ERU) to $6.00/month per ERU. Combined these three increases in water, sewer and stormwater charges is expected to cost an average household (using 4,500 gallons per month (or 6 hundred cubic feet/month) and having 1 ERU) an additional $2.84 per month or $34.08 per year.