Minutes 04/02/2013 - Laserfiche WebLink

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April 2, 2013 Consistent with the Portsmouth Golf Courses Golf Operational Assessment Report (E.L. Hamm, Inc., May 2011), we recommend amending the City Code to give the City Manager and his designee the authority to adjust golf fees so as to attract more play at our two golf courses. For example, with this marketing concept, the Golf Manager may set early-bird or twilight rates, allow golfers to purchase three rounds and to get the fourth free, or play for free on one's birthday. This will give the Golf Manager the flexibility to periodically offer discount packages and specials in order to optimize play thus increasing revenues. Because we have not previously had this pricing flexibility, we conservatively forecast no increase in Golf Fund revenues for this budget. We will use the experience that we gain with this new marketing plan in developing the golf revenue forecast for the 2014- 2015budget. The two other enterprise funds that require General Fund subsidies are Willett Hall and the Parking Authority. As you know, we recently briefed you on the conditions at Willett Hall. During the course of the next fiscal year, we will evaluate the revenues and operations for both of these funds, and we will develop recommendations for City Council's future consideration. Investments in Capital Infrastructure The proposed CIP continues maintenance and improvement of vital City infrastructure, and it includes those projects whose products have a long life as opposed to maintenance-type projects. In the recent past, the City has paid for a number of ongoing capital maintenance costs by issuing debt instead of cash funding the work. Prudent financial practices recommends that the City should cash fund those maintenance costs that occur each year and only debt fund projects that have a useful life that is at least equal to the amortization period of the bonds. We will follow this recommendation with the proposed CIP. Instead of debt funding maintenance-type items, we will cash fund these items. In this regard, this budget proposes to use $4.5 million of available General Fund balance to cash fund capital projects. Section 14 of this document provides a complete listing of these projects. Here are some highlights of this listing: • $1 million for an ongoing School Bus replacement program • $325,000 to fund recreational activities including lighting for athletic facilities, outdoor facility repairs, and equipment costs for Paradise Creek Nature Park • $917,042 for upgrades to important financial and public safety computer systems • $1.7 million for maintenance of City buildings and Seawall • $225,000 for parking garage repairs The proposed CIP includes an additional $1 million in funding to complete construction of a new Behavioral Healthcare Services (BHS) building, to be located on the campus of the existing Department of Social Services/Portsmouth Health Department building. The new 30,000 square foot building will house the BHS Administration, Mental Health and Substance Abuse operations and clinic for direct service to citizens. We anticipate the completion of construction by the end of calendar year 2014. Revenues As for the General Fund, one penny on the real estate tax rate generates $677,782. Again, this budget does not propose an increase in the real estate tax rate. We project a very slight increase in revenues for Fiscal Year 2013-2014, reflecting the continued slow economic recovery. Specifically, we anticipate that our base revenues will grow no more than one percent over the actual revenues for Fiscal Year 2012- 2013.