Minutes 04/05/2012 - Laserfiche WebLink

Home Browse Search

April 5, 2012 The proposed FY13 funding level for the Portsmouth Public Schools (PPS) is $48,871,532 ($48.9M rounded). It is consistent with the planned FY13 amount that was presented in the Biennial Budget for FY12/13. This excludes the $699.8K one time funding provided in FY12 from surplus generated by the operations of FY10. The PPS requested an increased level of funding; however, the City is unable to cover any shortfalls in state funding as a result of an increase in the composite index. The administration is cognizant of Council's commitment to education and strived to recommend a level of funding that reflects that continuing commitment. This funding level will contribute to sustaining the human and capital assets of the education system in the City. Our Employees We recognize the dedication and hard work of our workforce and made every effort to contain expenditures without any reductions in force. The City has taken prudent steps to manage through our fiscal challenges and recommends this budget without any furloughs or layoffs of our employees. With that said, this budget also does not include any general wage increases, step increases for sworn Police and Fire employees, or cost-of-living adjustments (COLAs) for retirees of the City owned pension plans. Capital Improvement Plan (CIP) There are no new projects recommended in FY13. We continue to fund the essential projects that are vital to the quality of life for our citizens as we preserve and upgrade the city's infrastructure, which will also facilitate economic development. These projects are recommended without the benefit of a cash contribution. Being cognizant of our debt capacity and debt affordability, we took steps to maximize our existing bond proceeds and minimize our future obligations. We did not include funding for the four neighborhood improvement projects and the Dinwiddie Pump Station. For FY14-17, the only new project recommended is system maintenance of the new judicial facilities. Other Expenditures The Real Estate Tax Relief for the Elderly and Disabled is continued and will be capped at $2.5 million. This amount is consistent with historical expenditure levels for the program. Many of the essential services and amenities that contribute to the quality of life of our citizens are not self sustaining and require financial support. As in prior years, the subsidies are factored into the budget for funding. They include the Children's Museum, Bide-A-Wee and all other golf operations, VA Sports Hall of Fame, and nTelos Pavilion. The annual contribution for VRS/CEOs is $7.4 million. With the proposed 5% state mandated salary offset for VRS, the city may incur additional expenditures. The city owned pension plans' annual contribution for FY13 is $17.4 million. Public Utilities The budget recommends a $0.26 increase in the water rate and a $0.21 increase in the sewer rate. These adjustments will allow the Public Utilities Fund to be financially self- supporting, as well as return a dividend to the citizens in the form of revenue to the General Fund. The Department of Public Utilities/Works continues its efforts to deliver quality environmental services while maintaining affordable rates. We also continue to budget our share of a regional consent order from the EPA relative to SSO. The $75.8 million General Obligation Public Utility and Refunding Bonds that were issued in February 2012 will provide the funding resources to continue the upgrade and replacement of City infrastructure that has reached the end of its useful life. This phase of funding will facilitate multiple projects, but future resources are required to continue this effort. These improvements are vital to future economic development and sustaining the quality of life for our citizens. Conclusion FY13, the second year of the biennial budget, is proposed with consideration and recognition of lower revenue levels, a conservative approach for expenditures and unconfirmed revenue sources from the Commonwealth, as the state's budget approval is pending. This balanced budget was also formulated without equalization of the real estate tax rate due to reduced assessments.