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October 14, 1986
<br />
<br /> ~ I must caution you that Revenue Sharing Funds available ~or th
<br /> ~IP total only $650,000 this year, down from $2,851,892 last year.
<br />I anticipate that the Revenue Sharing Program will expire ~n Septem-
<br />ber. In the event additional Revenue Sharing Funds do becqme avail-
<br />able, it would be my recommendation that they be placed in the
<br />contingency account. Likewise, this year's Community Devel'opment
<br />Program permits us to use only about $750,000 for actual colns~ructic
<br />projects, compared with $960,000 last year. However, in a~dition tc
<br />recommending continuation of the General Obiligation Bond llevsl at
<br />$8,000,000, I also propose that you authorize the expenditure of
<br />$1,500,000 specifically for drainage and streets from the Glen~ral
<br />Fund for use in the CIP. Thus, despite the reduction in Fe!deral
<br />funds, there are adequate resources to address the varied ~ee~s of
<br />our neighborhoods.
<br />
<br /> Neighborhood pro,rams are concentrated in Drainage ann S~reet
<br />Improvements, for in spite of our progress in recent years, many
<br />areas in Portsmouth are still in need of drainage or curbs ann
<br />gutters, as well as overall improvements to the street netv
<br />address those needs I am recommending that you authorize funds
<br />would allow construction to begin in Douglas Park and Choatle
<br />Jefferson and Fayette Streets, Cradock Gardens, North Truxt~un,
<br />Brighton~South Portsmouth, and Clifford Street.
<br />
<br /> The Drainage and Street Improvements category totals $13,648
<br />compared to a combined total in last year's CIP of $1,800,0i00.
<br />future years I plan to continue this emphasis on improving lout
<br />transportation network. Local funds will be used where neclessary,
<br />but I plan to work with the Virginia Department of Highway~i a~d
<br />Transportation to designate many of our needs as urban pro]iects,
<br />which would be eligible for 95% State funding. If successfM1, this
<br />would allow us to accelerate the five year road improvemen~
<br />included in this CIP. I will keep you informed as to my
<br />this matter in the coming year.
<br />
<br /> I must caution you about the effect the proposed new Cihurch-
<br />land High School will have on[future Capital Improvement Pr?grams.
<br />Currently, construction is estimated to occur during fiscall years
<br />1988-89 and 1989-90, and construction costs are estimated at $14
<br />million. Our recent General Obilgation Bond level has been~$8
<br />million. With a scarcity of federal funds available for ca~ital
<br />construction, it may be difficult to budget for all of the ICity's
<br />needs. Although it is too soon ~o accurately predict our plosition
<br />in 1988, I wanted you ~o be aware of this situation.
<br />
<br /> In the past, the CIP has included less that $250,000 for
<br />contingencies, which is only about 3% of the General Obiliglation
<br />Bond level, and only 1% of the one year capital budget. Thiis year,
<br />I am recommendin~ a somewhat higher amount] $539,265, for tlhe
<br />contingency item. This amount will not only permit fundingi o~ cost
<br />increases and unanticipated small projects, but may also peirmit
<br />proceeding, at least with desig~ work, with projects whose iex~ct
<br />timing is uncertain. For example, the Western Freeway, Twi~ Pines
<br />Road Widening, West Norfolk Road-Tyre Neck Road Intersectic
<br />Tyre Neck Road, and Naval Shipyard Museum are all shown in
<br />proposed CIP as starting in 1978-88. However, conditions
<br />require acceleration of that schedule. The contingency aut~
<br />will allow accelerated design £or some of those projects if!
<br />conditions require it.
<br />
<br /> For your information, I have summarized the 1986-87 ex:pe~iture
<br />and so.urces of revenue below.
<br />
<br />1986-8- Budget Summary
<br />
<br />Project Category
<br />
<br />Am sunit
<br />
<br />Drainage and Street Improvements $3,645,50~
<br />Education 1,246!, 000
<br />
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