Minutes 04/05/2012 - Laserfiche WebLink

Home Browse Search

April 5, 2012 At a Called Meeting of the City Council on Thursday, April 5, 2012, there were present: Mayor Kenneth I. Wright, Vice Mayor Charles B. Whitehurst, Sr., William E. Moody, Jr., *Marlene W. Randall, Paige D. Cherry, Dr. Curtis E. Edmonds. Sr., City Manager Kenneth L. Chandler. 12 - 130 -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, 6:00 p.m., Thursday, April 5, 2012 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." 12 - 131 -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 Introduction Today, our administration presents for City Council's consideration a balanced budget as the nation's economy continues to attempt recovery from the impact of a depressed state. This condition has resulted in fuel prices escalating, a decline in housing values, record level foreclosures, public and private sector salaries remaining or becoming stagnant and many other ill effects. As the national economy continues to struggle, the Commonwealth of Virginia is not immune, weakening the region's economy and ultimately the local economy of municipalities to include the City of Portsmouth. We remain vigilant in our efforts to continue and advance in the direction of achieving positive outcomes and meaningful results. Our ultimate goal is to sustain and enhance the quality of life the citizens of the City have come to expect and deserve. As these efforts continue the fiscal challenges faced in prior budget years are present and prevalent as the FY13 budget is presented for your consideration. As such, many of the departments and divisions of the City provided budgets at funding levels 10% to 15 lower than those in FY12. The impacts of these reductions are exacerbated by 11 % to 16% prior fiscal year reductions. The recommended balance budget for FY 13 is $544,491,582. The commitment to strong and prudent fiscal management practices are exhibited by the details of this budget. With the continuing stagnancy of new revenue sources coupled with the diminishing aid from the Commonwealth, this budget has been formulated without drawing upon or the utilization of the unrestricted, unassigned 15% fund balance. As this is the second year in the FY 2012/2013 biennial budget process, the methodology and the strategy of the process provided the basis to implement the future operating and financial plans. Additionally, the multi-year capital improvement plan includes an appropriation for FY13 and approval of subsequent four years through FY17. Our Financial Obligations Our rich history as well as the outlook and prospective of a prosperous future remain prevalent in our consideration as the budget was formulated. The corporate and residential citizens of the City are key and important factors in the budget process. Certain conditions, as in the past, continue to impact our financial abilities. These include this year's overall decline of 2.37% in the combined value of our taxable real estate, the privilege to host vital federal and state installations, yet being cognizant of their financial impact, and the limitations we recognize in our ability to generate new revenue sources in consideration of the depressed state of the national economy. The demands upon our resources to sustain quality of life elements to include education, public safety, transportation and utility infrastructure, are still a reality. The city's sound financial management practices and policies contribute to our ability to manage our fiscal affairs, while sustaining City Council's vision and the preservation of quality core services to our citizens.