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397
<br />
<br />April 30, 1985
<br />
<br />7:00
<br />
<br />At a Public Hearing of the Portsmouth City Council held on Tuesday, April 30,
<br />p.m. in the Council Chamber, the following were present:
<br />
<br />James W. Holley, III, Ben A. Beamer, Sr.', E. G.iCorprew, Jr.,
<br />L. Louise Lucas, Gloria O. Webb, MOrton V. Whitlow, George L.
<br />Manager, Steven Lieberman, City Attorney.
<br />
<br />J. Robert Gray,
<br />Hanbury, City
<br />
<br />1985, at
<br />
<br /> Councilman Beamer opened the meeting with prayer, followed by the Pledge of Allegiance
<br />to the Flag.
<br />
<br /> Mayor Holley welcomed all visitors in attendance.
<br />
<br /> 85-118 Public Hearing on City Operating Budge~, General Revenue Sharing Budget, propose(
<br /> Real Esfate Tax Ra~e for FiscaI Year e~ding June 30; 1986, and proposed Business
<br /> License Tax Rate to take effect May 1,i1986:
<br />
<br /> The following letter on the Budget from the City Manager was submitted:
<br /> "In accordance with Article V of the Charter or,the City of Portsmouth, I hereby submit
<br />the proposed Annual Operating Budget for the Fiscal Year 1985-86. This budget, as submitted,
<br />proposes a real estate tax rate reduction of five ce~s per one hundred dollars, as well as
<br />a partial restoration of services that were cut durihg previous years of budgetary crisis.
<br />
<br />SUMMARY OF FUNDING SOURCES:
<br />
<br />From the Commonwealth
<br />General Property Taxes
<br />Other Local Taxes
<br />Other Local Sources
<br />From Federal Government
<br />Fund Balance
<br />
<br />BUDGET IN BRIEF
<br />
<br /> 1984-85 1988-86 Percent
<br /> Budget Recommended Change
<br />
<br /> $38,324,907 $ 45,587,989 18.95%
<br /> 28,823,000 31,585,000 ~ 9.58
<br /> 13,464,105 14,187,720 5.37
<br /> 11,574,767 11,862,639 2.49
<br /> 2,542,551 1,122,819 (55.84)
<br /> 4,445,154 10,397,495 133.91
<br />
<br />TOTALS
<br />
<br />$99,174,484
<br />
<br />$114,743,662
<br />
<br />15.70%
<br />
<br />APPROPRIATIONS SUMMARY:
<br />
<br />General Government Operations
<br />~eh~o~iOperations
<br />Budget Contingency
<br />(Emergency)
<br />
<br />$51,226,691 $ 54,945,798 .26%
<br />46,172,095 53,125,369 15.06
<br />
<br />1,775,698
<br />
<br />6,672,495 275.--
<br />$114,743,662 15.70%
<br />
<br />TOTALS
<br />
<br />$99,174,484
<br />
<br />BUDGET MESSAGE
<br />
<br /> I have been informed by the City Assessor that the average increase in total reassessment~
<br />was approximately 6.69%. It should be noted that a five cent reduction in the real estate tax
<br />rate is approximately 4%. Therefore, of the 30,646 parcels of real property in our City, more
<br />that 5,400 parcels will have a decrease or no increase xn taxes if the proposed budget is
<br />adopted.
<br />
<br /> Such a financial picture is far brighter than t~e one I painted in April of 1983. At
<br />that time, I had been in Portsmouth for nine months. Not only did I have to recommend sub-
<br />stantial reductions in the School Board and departmental prooposals, but an increase in the
<br />real estate tax rate. It was the most agonizing budget I have ever prepared. Had you not
<br />adopted a tax rate increase that year, we would not be in the positive financial condition we
<br />are at the present time. I believe your actions have proven to be wise. The real estate tax
<br />always lags behind the economy; therefore, we are now experiencing the benefits of that tax
<br />rate increase. In addition, there has been a very positive impact from actions of th~ members
<br />of the General Assembly.
<br />
<br /> All localities this year in Virginia have been granted substantial funds to help offset
<br />local costs of State mandated programs for schools. Additionally, highway maintenance funds
<br />for urban roadways have been substantially increased by the General Assembly. I commend the
<br />members of the General Assembl re resentzn Portsmouth es ecaall T e
<br /> Y P ' g ~ , p ' y~ h Honorable L. Cleaves
<br />Manning for his tireless efforts toward this end. Finally, the reduction of pesitions and
<br />managerial efficiency methods implemented during the last two years have enabled me to recom-
<br />mend to Cmty ....... Councxl substantial ~ncreases zn services wmth only a 7.2~o increase in the cost
<br />of general government operations!
<br />
<br /> After utilizing ~3million to balance the proposed 1985-86 budget, we anticipate approxi-
<br />mately $6.6 million unappropriated funds remaining as working capital for emergenc-ies or
<br />budgetary contingencies. In the bes't interest of souFd financial management, the Municipal
<br />Finance Commission recommends, and I agree, that we n~t be tempted to reduce this fund in orde
<br />to reduc~ ~he real estate tax rate further. I feel that the proposed tax rate is ~he lowest
<br />possible unless other sources of revenue are received to provide for unanticipated necessities
<br />of the future. This reserve represents slightly less than the 5% recommended by the Finance
<br />Commission.
<br />
<br />
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