Minutes 04/24/1990 - Laserfiche WebLink

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April 24,-1990~ The recommended machinery and tool tax rate increase from $2.00 to $2.25 per $100 of assessed value, will be partially offset by the proposed change in assessment method. The Commissioner of the Revenue has agreed to change the current assessment method to a straight 50% of original cost~m~thod through a transition process over the next four years. During the transition period, new equipment purchases will be assessed'at 80%'of original cost in fiscal year t991, 70% in 1992, 60% in 199~, and 50% in 1994 and.thereafter.~ The assessed value of presently.owned equipment would continue to decline by 10% per year during the transition period,~to a minimum~of'50% of original cost. Equipment which is already assessed at~50% of original cost or less, would continue to be assessed at its present assessed value~.j ........ The~actual impact of the rate chan~e and assessment method change on any specific business will'depend on its particular complement Of equipment. Any new business entering the City next year would pay the same amount of tax with these proposed changes ($2.25 x 80% = $1.80) asit would have under-the existing ~ate and assessment method ($2.00 x 90% = $1.80). This conversion to a level 50% of original cost method of assessment will be beneficial to our businesses, as well as to the City's economic development efforts and revenue patterns. IMPOUNDMENT FEE AND DOG LICENSE INCREASES Animal impoundment fees have not increased since 1964. This budget recommends an increase to $12.00 for the first day of impoundment and $5.00 for each day thereafter. The proposed fees will bring Portsmouth in line with ~urrounding localities. An increased and differentiated dog license fee also remains comparable to other area c~ties~ The differential, which offers a lower fee for neutered animals ($5.00) as opposed to unaltered animals ($10.00), will provide an incentive for sterilization, thereby reducing dog overpopulation. NEW FUNDING'SOURCES ~ The 1990 Virginia General Assembly approved House Bill Number 74 which allows the City to impose an additional $2 fee which would be assessed as p~tJ'p~h~?~ourt cost for criminal or traffic cases. ~'~"additional revenues generated are for the construction, renovation and maintenance of court houses and local jails. This action by the Legislature will provide an additional $65,.000 in revenues. Additionally, the Legislature approved the return of a portion of the State Recordation Tax revenues to localities for education and transportation purposes, effective October 1, 1990. The City will receive $150,956.. PORTSMOUT~ RETI, REMENT FUNDS Two changes are being recommended regarding the funding of the Portsmouth Retirement Systems. These changes have been reviewed by the City's actuarial consultants, who have indicated their concurrence with both of these Changes, as described below: o Investment management fees are paid to the money manager firms th'at directly manage the investment of the retirement funds. The investment management fees are paid on a percentage basis of the total funds managed. The investment assets of the. Portsmouth Retirement Systems exceed $75 miTlion and the investment management fees are approximately $280,00:0 per year. In prior years the investment management fees have been paid from the General Fund. These investment expenses are eligible to be paid