Minutes 05/06/1987 - Laserfiche WebLink

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II Ma~6, 198Z( 3!0 The Commission considers this transmittal letter an appropriat /vehicle to further express its views on the financial condition of /~the City as a whole and as it will be affected by ~he upcoming budge ~While the City continues to be financially sound wmth a reserve of llapproximately 5% as recommended by the Commission, the proposed bud- is again not truly balanced with current revenues equaling rent expenditures. In order to close the funding "gap" the reco~ ~ended budget uses approximately $~.4 million of the available fund balance. While historically the fund balance has been used in this it should be well understood by everyone the pctcntial impa¢ this may have on future budgets. ~In essence, the City is dipping savings in order to pro¥ide current services which are re- g. Through this continued use of our'fund balance we are motent[aliv risking increases in tax rates in future years should ~he ~ be~in To deteriorate or if expected growth in our tax ~ econom~ ~ base is unrealized. Therefore, the Commission reommends that the City Council remain aware of these issues and respond to any addi- tional increases in £unding only through added .revenues or a modi- fication to the allocation'of existing resource-s. The Commission .ecommend against any increase in the use of the fund balance As always the Municipal Finance Commission stands ready to assist the C~ty Council in all financial matters pertaining to the City. Please he assured that we are available to serve mn this capacity should you desire additional input from the Commission during your deliberations on the operating budget." Gary C. Richardson, 157 Gillis Road, representing Publi~ Schoo ~ntenance Department, requested that the school budget be fully unded as proposed. Motion of Mr. Simpson and seconded by Mrs. Lucas, to approve he ordinance on first reading. Motion of Mr. Gway~and seconded by Mr. Barnes, that two items (STOP and HER] be removed from the budget, and was adopted 5-C-2 'Abstaining-Lucas, Webb] vote. Vice Mayor Webb stated that she would abstain on the HER item due to serving on the HER Board. Councilwoman Lucas stated that she would abstain on the STOP item due her position with STOP. Motmon of Mr. Barnes and seconded by Mrs. Webb, to approve the funding for STOP, and was adopted by 6-0-1 (Abstaining-Lucas) vote. Motion of Mr. Barnes the funding for HER(under (Abstaining-~ebb] vote. and seconded by Mr. Gray, to approve Titl~ XX), and was adopted by 6-0-1 On motion, was adopted on the following ordinance, excluding Items deleted, first readinb by unanimous vote: "AN ORDINANCE TO APPROPRIATE FUNDS NECESSARY FOR OPERATION OF THE CITY GOVERNMENT FOR AND DURING THE FISCAL YEAR BEGINNING JULY 1, 1987 AND ENDING JUNE 30, 1988." 87-206 - On motion of Mr. Barnes and seconded by Mrs. Webb, the followxng ordinance was approve on first reading, and was adopt by unanimous vote: "AN ORDINANCE TO RE-ENACT ORDINANCE NO 1985-39 AS RE-ENACTED BY ORDINANCE NO. 1986-44 IMPOSING AND LEVING TAXES FOR EACH FISCAL YEAR BEGINNING JULY 1ST AND ENDING JUNE 30TH, UNLESS OTHERWISE CHANGED BY COUNCIi ON REAL ESYATE, TANGIBLE PERSONAL PROPERTY, AND MACHINERY AND TOOLS WITHIN THE CITY OF PORTS- MOUTh, ¥IR~!NIA FOR THE PURPOSE OF RAISING REVENUE FOR THE SUPPORT OF GOVERNMENTAL OPERATIONS AND THE PUBLIC FREE SCHOOLS AND TO PAY PRINICIPAL AND INTEREST ON THE PUBLIC DEBT."