Minutes 11/08/1988 - Laserfiche WebLink

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24'5 November 8, 1988 Before beginning the public hearing, I will Chairman of the Planning commission, if he would remark s ?" ask Mr. Lefcoe, like to make any Vann Lefcoe, Chairman of the Planning Commission, offered the following statement: "Thank you, Mayor Webb, for the opportunity to comment oh the CIP public hearing tonight. The Planning Commission is interested in the capital improvement plan primarily because of its relationship to the comprehensive plan, which guides Portsmouth's overall physical development. The capital improvement plan outlines the public improvement component of the comprehensive plan. Based on that review, we will make a recommendation to the City CounCil concerning the adoption of this document. As you stated, no action will be taken tonight. Instead~ we will consider all comments received from citizens and will make a formal recommendation to you at a later date. We are pleased to hold this joint public hearing with yoU, and we hope that our deliberations will help you when you consider adopting this document." The following citizens spoke: Larose M. Mann, 805 Jewell Avenue, representing the Simonsdale Civic Club, spoke concerning the need for curbs an~ gutters in the area. James E. Bridgeford, 3840 Flagship Way, Chairman of the Municipal Finance Com~mission offered the following: "As Chairman of the Municipal Finance Con,mission it is m~ pleasure to inform the Council on the recommendations and collectiVe thinking of the Commission on the proposed Capitall Improvement Plan (CIP) as presented to you by the City Manage~. On September 19i 1988, the Finance Commission received al presentation by the City Manager on the proposed projects contained in the five year Capital Improvement Plan and the flirst year recommended program. Following discussions with the Manager and his staff as well as a subsequent meeting on October 18thI, it is the recommendation of the Municipal Finance Commission tha~ the CIP as prepared by the City Manager be favorably considered bP the City Council. We note, and wish to relate to the Council thait the annual anticipated general obligation bond use meets the established $10 million per year cap adopted last year. Thisi limit~ while, not legally imposed, does represent ~he upper le~ei of annual debt that Portsmouth should be incurring in the judgment of the Municipal Finance Commission. Even though the City'si outstanding debt will continue to climb at this spending.leveil, the net debt to assessment ratio is projected to decline. The level of~ debt~ issuance includedI in the Capita.1 Improvement Plan will rsquire greater debt servic.e expbnditurles from the annual operating budget in the future, which Will f~lrther increase the need for a tax rate increase. The need for a taix rate increase waS pointed out b~ the Municipal Finance Commission in our review of the operating ~mudge.t and in Our letter to council last April. Later in the budget approval process the budget Iwas expanded with additional appropriations of $800,000 coming ou!t of the fund balance. This further reduction of the fund balancel, of course, makes a tax rate increase even more necessary. Therefo,_re, while the Municipal Finance Con,mission favors the approval of the CIP as recommended by the City Manager, we are of the opinio~ that the capital spending level and the current level of operatin~ expenditures cannot be maintained without an increase in taxes.