Minutes 04/30&05/02/1985 - Laserfiche WebLink

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April 30, 1985 In 1983 I recommended the creation of the Department of Economic Development and you adopted that recommendation. For the first time Economic Development efforts were concentrate~ in one particular department and funds needed to operate this department and market Portsmouth were provided. I believe the creation of that department and the hiring of the appropriate qualified personnel has proven to be a worthy investment. In 1984 new taxable investment in Portsmouth was more than $66 million and 780 new jobs were created. Building permit activity increased 33% over the previous year. New marketing methods have created a positive image for outside investors of Portsmouth and I believe a positive outlook permeates our community. Because of these efforts and the new construction initiated this year plus projects planned for the future, I feel Portsmouth's economic outlook is stronger than ever. Even though this may be the brightest budget presented to a Portsmouth City Council in more than a quarter of a century, I would like to pass on this word of caution. Our commercial tax base is increasing at a decreasing rate. For instance, in the last five years Portsmouth retail sales have increased by appro×imately 21%, primarily the result of inflation. Compared to other municpalities, such as Chesapeake at approximately 64%, Virginia Beach at 74~, and Norfolk at 31%, Portsmouth has not shared in the growth of this regional activity. The primary method of sharing the regional wealth is through the sales tax or meal and lodging tax. Con- sequently, our citizens desparately need to attract commerce to our City. Any effort that Cit Council, ~employees, or the citizens can do to attract new commercial activity would help to eliminate this deficiency. Obv~ns~y, our new efforts to promote tourist attractions and solicit conferences in PortsmoUth is also directed toward this end. For the first time since 1974, the City's proposed budget is not dependent upon Revenue Sharing. In discussions and correspondence with our members of Congress, contrary to all previous years, they feel that revenue sharing will definitely be phased out. It is essential therefore, that our dependency on this form of assistance, over $2 million, likewise be remove Although I certainly favor revenue sharing and hope for its continuance, pragmatically we must plan for its demise. In review of budget messages by four previous City Managers, each has indicated that our dependency on this form of revenue, although necessary, was not desirable from an operating perspective. In last year's budget message, I proposed the implementation of a work management system in the Departments of Public Works, Public Utilities, and General Services. Previously we had initiated a similar Frogram in the Department of Parks ~ Recreation. Consultants were hired in December, 1984, and have completed the organizational review of these departments. The major finding of the review ms that a net reduction of twenty-six positions can be realized while still providing the same level of service to the citizens of Portsmouth. This amounts tc a personnel savings of over $350,000. Over the next year as the automated system is £ully im- plemented, I expect additional savings to be realized due to further reductions in positions and increased productivity in field operations. I also plan to expand the work management program to other departments in the City. With the implementation of the work management stud) and the reduction of twenty-six positions, we were able to offset much of the cost of the pro- posed service increases. As you are aware, there are only two cities in Virginia that still have the position of High Constable -- Norfolk and Portsmouth. Historically and up until the last two years, this office has generated sufficient revenue to meet expenses. At that time, the General Assembly authorized the Sheriff to serve the same papers at no charge. Some companies and businesses have preferred the High Constable to provide the servmce. However, because of the free servic~ offered through [he Sheriff's Department there is a substantial deficit now occurring in the High Constable's Office. The High Constable has recommended ~o me, in an effort to save the citizens from further subsidies of his operation, to eliminate his office. I commend Mr. Williford for his frugalness and agree with his recommendation~ Therefore, there are no funds for the operation of the High Constable included in this document. MAJOR APPROPRIATIONS Creation of a Department of Housing Services and Community Development Our current program of systematic and concentrated code enforcemen~ is divided between the Departments of Health and Inspections. Although the performance of these two agencies has been adequate, in an effort to reach the Goals and ~j~etLag~se established by the City Counc a more refined and proactive method must be established -- proactive not only in the method of code enforcement, on the part of inspectors, but proactive in the neighborhoods with citizen involvement. To staff this department, I recommend transferring existing positions in the Building Official's Office and the Public Health Department ~ the new Department of Housing Services and Community Development. This department would consist of nineteen employees organinzed for the single purpose of protecting our residential and commercial environments within our community. Whil~ there are no new positions, increased costs will result because the State currently pays 55% of the salary and fringe benefits of Minimum Housing Inspectors. I believe the $45,000 in additional costs to the City will ~e offset in part by improved col- lection of rental inspection fees and will result in more responsive and efficient services to the citizenry. The primary purpose of the Health Department is for protection of the physical health and well being of our cmtizenry. The transfer or-the Minimum Housing Inspectors will in no way deter the Health Department from meeting its primary mission. In fact, the Health Director supports this organizational change.