Minutes 03/30/2015 - Laserfiche WebLink

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March 30, 2015 The proposed tax rate increase is comprised of the following drivers:  Ten cents to make permanent the $6.4 million in one-time funding that was appropriated to the Portsmouth Public School system in Fiscal Year 2014-2015. Last year’s appropriation was made using one-time funds, and to make this funding level part of the Schools’ base budget requires an ongoing revenue source. This additional funding supports Council’s goal of providing quality education for our community.  Four cents to equalize the tax rate to offset the consequences of the Great Recession of 2007-2008 and to restore tax revenues lost due to that recession. Many cities equalized the tax rate as assessed valuations went down, but Portsmouth has deferred doing that until now.  One cent to provide an ongoing funding source for maintaining the City’s critical capital infrastructure. This amount does not address deferred maintenance costs, and future budgets should strive to increase this ongoing commitment to adequately maintaining the City’s infrastructure.  Two cents to offset flat revenue projections, and to provide for normal cost increases in our budget. This proposed budget does the following:  Maintains core municipal services such as Police and Fire services, recreational programs, maintenance of City streets and bridges, and trash and recycling collection.  Increases the City’s support of its Public Schools by making $6.4 million in one- time funding from Fiscal Year 2014-2015 a permanent revenue source for the School system.  Enhances public safety in our City by providing funding for the construction of a critically needed Fire Station in the Truxtun community.  Continues to invest in our employees, retirees, and Constitutional Officers by providing a cost of living adjustment, to ensure that our employees are paid fairly and that we do not fall further behind other jurisdictions in overall compensation levels.  Continues the implementation of the City’s Parks and Recreation Master Plan to provide enhanced recreational opportunities to our citizens.  Continues the funding for our regional and contractual obligations such as the Hampton Roads Regional Jail and Hampton Roads Transit.  Implements a new personal property tax relief program for Veterans who are 100% disabled or their surviving spouses.  Continues the City’s current real estate tax relief programs for elderly and disabled persons.  Equalizes the real estate tax rate to offset the consequences of the Great Recession and to restore tax revenues to their Fiscal Year 2009-2010 levels. The overall budget proposal totals $657.4 million for Fiscal Year 2015-2016. This amount includes $242.4 million for the General Fund, $56.6 million for the Capital Improvement Plan, $43.2 million for Public Utilities, and $167.7 million for Portsmouth Public Schools. Please note that at the time of the preparation of this budget proposal, we do not have the School Board’s final budget proposal for Fiscal Year 2015-2016; therefore, the Proposed Budget includes a placeholder that is equal to last year’s School Budget total.