Minutes 04/29/1987 - Laserfiche WebLink

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3O0 April 29, 1987 expand our tax base, bold moves need to be undertaken and hard decisions that may change the status quo will have to be made. Unt such time as we can attract additional orivate investment to our Ci~ the financial burden to support the budget is going to have to be ~ed more upon our citizens. That year, because of no growth ate average increase in assessments of less than 1%, a tax rate in- rease was necessary. This year, because you made those hard deci- oas and set the stage, I am allowed to present an entirely differ- ent picture. THE PORTSMOUTH PARTNERSHIP The Portsmouth Partnership has ~ extremely successful in p~ our City and improving the image of Portsmouth in our City, region, Commonwealth and nation. The Partnership was formed in 1984 as a four-year program, which raised $1.g million for marketing efforts. I am pleased to report that at a recent retreat, investors of that organization elected to continue at the same level of support and t¢ expand its efforts to improve the image of our community as a good ~lace to work~, live and rear a family. This type of effort with ~usiness, government and citizens working as one t~allow Portsmouth ~o share the wealth of Hampton Roads is working. GENERAl ASSEMBLY The General Assembly continues to support pay raisesfor classroom school teachers at 10% and has provided the funds to accomplish thi! mandate. This budget satisfies the General Assembly's intent. I ommend the members of the General Assembly for supporting their itment with the funds to localities to accomplish this worthy effort. CONSUMER PRICE INDEX The Consumer Price Index rose 1.1% in 1986, the lowest since 1961. Accordingly, inflation took lts worst beating in 25 years and has been a significant influence in holding prices of goods and service reflected in this budget. FUND BALANCE During the fiscal year, I have kept City Council informed concernin our financial status, forwarding quarterly reports on the ¢ of revenues and disbursement rate of expenditures. As you ar{ , most revenues have exceeded expectations and we have been ab] to reduce expenditures where possible. Because of this factor we ,ill have approximately $12.4 million mn working capital at the end June 1987. It is anticipated that we will utilize approximately $3.4 million of this amount. Therefore, $9 million or approximatel~ 5% of the recommended budget is being held in reserve to meet utah-' ticipated needs. Such a procedure is consistent with the advice of the Municipal Finance Commission and I concur in this recommendatio: wholeheartedly. This is the highest fund balance amount we have ever used and, as such, creates certain risks. Therefore, mn order to minimize that risk, I do not recommend we use more of the fund balance for recur- ring operating expenses that., proposed. In addition, because of un- foreseen emergegDi~ and in the best interest of sound financial management, the amount of the reserve should not be decreased. Tax Relief for the Elderly and Handicapped In addition to the proposed tax rate reduction, that you increase tke tax exemption benefit for disabled by 25%J lam recommending the elderl) and