Minutes 04/29/1987 - Laserfiche WebLink

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299 April 29, I987 comparative study of the present tax rate with the proposed tax rate's mean, median, and mode of residential parcels revewal that over 19,000 parcels or 62% of all our parcels will actually experi- ence tax reductions! The proposed rate reduction was not an easy task. The full coopera- tion of all the officials whose budgets [ revmewed, as well as sub- stantial cuts in departmental budget, were necessary. Over three thousand accounts have been reviewed by the budget staff and me. Such review has resulted in cutting of expenditures, shaving costs, transferring funds, and reducing personnel requests without destroy- ing the effectiveness of our service operations. We have trimmed approximately $8 million [rom the budget requests originally submit- ted. These steps were necessary to offer a reduced tax rate and expand programs in Police, Parks & Recreation, Social Services, and Housing & Community Development; however, the bottom line reflects only a 5.32% increase in budget totals~ Cost estimates on material~ and equipment have been scrutinized in minute detail; therefore, I feel that any further cuts to this budget could not be made without sgcrific~ng services that you and our citizens have consistently requested. FACTORS ALLOWING THE PROPOSHD REAL ESTATE TAX RATE REDUCTION Grcwth Portsmouth Partnership General Assembly Consumer Price Index Fund Balance GROWTH Public investment initiated by you has been the stimulant to promot~ rowth and thereby allowing this reduction. Last year, $91 million taxable building permits were issued compared with $30 million 1982. Such figures equate to $107 million in private investment, 900 new jobs, and 1,021 new residential units. In our Enterprise Zone alone, we have seen vacant store fronts become occupied. Last ~ear over $9.3 million in taxable b~2f14~.~- permits wereissued versus than $1 million annually before the Zone program began in 1984 an 882% increase. This zncrease was so dramatic that Dodge Reports' ranked us ninth in the country in growth rate for the year. I believe the future is just as exciting. For example, the opening of PortCentre tkis year will usher in three new structures valued at $10 million and emFloy 570 people. One of the State's largest and most unique new restaurants will open as well as two major condomin- ium projects representing $21 million and creating an additional 20( new jobs downtown. Also, citywide, the new River Points project is now partially complete. Once completed, it will be the first corpo rate. headquarters/residential park in Hampton Roads. Two new shop- p~ng centers containing a combined 250,000 square feet of space wi] break groun~ and ultimately increase our taxable retail sales. In addition, responses to our national advertising campaign have been phenomenal, totalling over 2,600 for the Cable News Network commer- cial. We have had a 7% population increase since 1980 and a 15% employment growth. Museum visitors have increased from under 100,00 in 1983 to 169,800 last year. Convention delegates have tripled since 19~, and to top that, Portside visitors ars over 1,200,000 a ~ear! n 1983, I stated, "Much can be done tn bring in additional sources ~f private investment to relieve the real estate %ax burden; howeve~ ~ubiic investments must be made in an effort to accomplish this fac~ lnfortunatel?, such accomplishments do not come easy, quick or chea' Every citizen must participate and recognize that in order for us