Minutes 03/22/2021 - Laserfiche WebLink

Home Browse Search

March 22, 2021 The Proposed FY 2022 Budget includes necessary fee adjustments and increases to remain within state and federal requirements, necessary fee adjustments for city services, and continues the recurring annual rate increase of 5%. The approval was part of the FY 2018 Budget for the water and sewer rates to cover direct costs and promote efficient service delivery. The budget also includes the approved fee increase of the 1% rate adjustment to meals tax adopted in FY2021, which was deferred for six months due to the continued support and relief in assisting businesses during the height of the COVID- 19 pandemic. Budget Highlights Proposed FY2022 General Fund Budget: $252,629,328 or a $1,328,213 (0.52% decrease) from the prior year Real Estate Tax Revenue: Bolstered by residential property assessment growth, real estate tax projections increased by $1,628,256, or 1%. Personal Property Tax increase of 6.6% Rate increases: for Water rates and for Stormwater rates Portsmouth Public Schools: Local contribution of $58,834,014, or a $2,108,318, (3.6% increase) over FY 2021. 3% General Wage Increase: All full-time city employees (excluding employees of constitutional officers, courts, judges, grant-funded positions, part-time, temporary, and seasonal employees) effective November 1, 2021 Pension Retirement Systems: Additional funding to the legacy retirement systems of $500,000 to the OPEB trust in Fy22. Cash Funding of Capital Projects: $2.5 million to reduce dependence on debt. Real Estate Revenue Portsmouth has the highest percentage of tax-exempt property in the state, at 41% per the City Assessor, and 59% of taxable property estimated at 41.9% of the city's total general fund revenue with a tax rate of $1.30 per $100 assessed value. Current and delinquent real property taxes are estimated to generate $104M in revenue for FY2022. Personal Property Personal property revenue is projected to grow by $1,652,872, or 6.6%, over FY 21. This reflects a growth in current year levy and represents a conservative adjustment of the base. Personal property taxes are levied on the value of automobiles, recreational vehicles, and business-related equipment. This is the largest year-over-year growth since the recession. The Commissioner of the Revenue should be commended for their hard work. Fees, Rates, and Taxes An important element of the city’s financial policies is to review fees, rates, and taxes annually. The city’s executive staff analyzes current and future costs, determine ways to provide quality services to maximize efficiencies and minimize costs. Water and Sewer Rates. Portsmouth is committed to providing high-quality drinking water and sanitary sewer services to its customers. As the largest enterprise fund of the city, Public Utilities services are vital to sustaining the life and environment of our city and touch all facets of community life. Faced with the critical need to respond to aging infrastructure, ever-increasing federal and state regulations and necessary implementation of technological advancements, a recurring 5% annual increase to the water and sanitary sewer rates was adopted as part of the FY 2018 budget. The continuation of these modest increases assists in providing the revenue necessary for the long-term financial needs of the department. Stormwater Rate . The Stormwater Utility Fund supports the city’s Virginia Stormwater Management Program (VSMP) Municipal Separate Storm Sewer Systems (MS4) permits. There are major stormwater program activities associated with water quality improvements and projects for infrastructure replacement/renewal and flooding. The current rate is $12 per Equivalent Residential Unit (ERU). The rate increase of $.75 to $12.75 per ERU is comparable with cities of our size and this funding will address and cover ongoing MS4 permit requirements.