Minutes 05/12/2020 - Laserfiche WebLink

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May 12, 2020 Meals Tax: 1) I read with sadness yet another article in the Va. Pilot regarding the proposed meal tax submitted as part of the budget submitted by our City Manager. THIS IS A VERY BAD IDEA! Just last Friday, Dock of the Bay, a great Portsmouth seafood restaurant, announced they will not be re-opening after the current Covid-19 crisis. I can speak as an investor at Stellar Wine Co. that restaurants have been hit really hard. This is no time to add an increases tax on customers of restaurants. People are hurting. They do not need yet another reason not to support the many fine restaurants in our fair City. And this is something that customers consider when choosing where to eat out. We are already not competitive with neighboring cities because of the burden that tolls have laid on Portsmouth businesses. I think you will find that increasing this tax now will be the straw that breaks the camel’s back for many of our restaurants. It is my sincere hope that you will consider this long and hard. And then you will NOT RAISE THE MEAL TAX! If you do raise it, I fear you will lose more revenue than you gain because establishments will leave Portsmouth. Thank you for your serious consideration to this critical issue. Cathy Revell 2) I am a Portsmouth resident. I DO NOT support the proposal to increase the meal tax from 6.5% to 7.5%. The meal tax proposal will reduce the number of restaurant patrons which will slow the restaurant owners’ pandemic recovery. Restaurants are one of, if not the most important reason for tourists and residents to spend money in Portsmouth. Reopening the city will be naturally slow, and we should not impose city-wide restrictions that wil sl that growth for restaurants. I do support proposed increases of 9% in the water rate, 9% to 15% in sewer rates, and 7% in the storm water utility fee WITH ONE CAVEAT - THAT THESE INCREASES REMAIN IN EFFECT ONLY FOR THE CURRENT YEAR AND NEXT YEAR BUDGET, AND THE RATE INCREASES WILL THEN BE REMOVED. I further propose a one-year 2% increase in trash and garbage fees to develop a fund used only to provide all sanitation workers (not administrators) an equitable for all end of year pay bonus for their work during this pandemic. We need to replenish the coffers, but do it smartly and considering the needs of business growth/recovery and in consideration of those city employees who had a job during the pandemic, but one that risked their health and that of their families. Patrick Muldoon 334 Middle Street 3) As a small business owner in Portsmouth since 1999, I wanted to speak out on the proposed food tax hike. I feel that by raising the food tax, especially in these strained economic times, you are putting Portsmouth businesses at risk. Having been in business in Portsmouth for over 20 years I have seen my business grow, and with this growth your tax revenue also grows. My business collected over 30,000 dollars in food tax last year. Making Portsmouth a more expensive place to eat is not the answer to budget problems and will prove more costly in the long run. As sales decline and businesses fail or new businesses choose other cities to open in, revenue will decrease. Instead, we should be focused on keeping and incentivizing small businesses to choose or stay in Portsmouth. The answer isn’t higher tax rates, the answer is a more business-friendly environment. Gayle Mayo Ritas Pizza Inc. 3226 Academy Ave