Minutes 03/22/2021 - Laserfiche WebLink

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March 22, 2021  City Hall Plumbing and Elevator Replacement  1846 Courthouse Operational Upgrades  Public Safety Masterplan  Downtown Master Utility Replacement Program  Drainage Facilities Repair and Lake Management  Pavilion Art Trailers Upgrades  Portsmouth Arts and Cultural Center Renovations  Sanitary Sewer Overflow Elimination Program  Seawall Replacement The above represent the 100 ongoing projects for FY 2022. Paramount to the operation of a well-run organization is the financial policies that guide management decisions daily. The establishment of and adherence to appropriate financial management, debt administration, budget and capital plan development, and long-range planning policies (Financial Policies) promote the fiscal health of Portsmouth, and ensure the cost-effective and efficient delivery of services. While the city has improved in its adherence to best financial practices and compliance with city financial policies, additional strides are needed to achieve best practices and consistent compliance. Governmental Obligations HAMPTON ROADS TRANSPORTATION The City of Portsmouth partners with Hampton Roads Transit (HRT) to provide public transportation services for its residents. We will continue to work with HRT to finalize the annual Transit Service Plan that is in line with the 3% increase generally agreed to by all member localities of HRT. Portsmouth's local contribution to HRT for FY2022 is estimated to be $2,970,726. HAMPTON ROAD REGIONAL JAIL (HRRJ) The city of Portsmouth has a contractual agreement to pay for the partnership of services and beds provided per inmate at the HRRJ in the amount of $6,611,063 for FY2022. Fiscal Stress and Tax Burden The City’s fiscal stress and tax burden signify the challenges Portsmouth faces in addressing community needs. Portsmouth has always reflected a community of relative, and modest fiscal health. Portsmouth is the 11th most fiscally stressed locality in the state (and highest in the region). Portsmouth has the highest dependency population among its urban regional peers (population under 18 and over 65, which does not contribute significantly economically and can be associated with higher governmental costs). Portsmouth has the lowest per penny real estate revenue and sales tax revenue per capita among its peers. The City has a high dependence on debt to finance its capital plan as well as a high net pension liability related to the two legacy retirement systems. Collectively, this helps explain why Portsmouth imposes the highest real estate and personal property tax rates among its peers. However, in the context of income and home values, our tax burden looks much more favorable, ranking second lowest for real estate taxes as a percentage of median household income. Portsmouth’s Plan The City continues to establish itself as a competitive municipal entity while realizing and recognizing our full potential. The City is dedicated in its development of new revenue strategies to secure economic growth which deeply affects the many ongoing fiscal challenges we faced in the development of this budget, requiring prioritization to continue to build the strong foundation needed for Portsmouth’s future. The economic climate is hopefully a “temporary” condition, so that while national conditions improve, our City will continue to successfully emerge into a more fiscally sound and stable position.