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319 December 11, 1984 84-468 - Letter from the City Manager submitting Comprehensive Annual Financial Report of the City Of Portsmouth as of June 30, 1984, and for the fiscal year then ended. "Attached hereto is the Annual Financial Report of the City of Portsmouth for the fiscal year which ended on June 30, 1984. While the formal transmittal letter and the financial s&at ments contained within the report describe in detail the financial condition of the City, I would like to take this opportunity to highlight some of the more significant information. I am very pleased to report to the City Council that the current financial position of the City of Portsmouth is the best it has ever been. The City's general fund balance for future appropriations is over $9.9 million, which is an increase of more than $5~9 million over last year, and which is the largest available fund balance ever in the City's history. While the reasons underlying this positive change in fund balance can be attributed to a multitude of causes, chief among these are the £ollowing: Ali departments and agencies operated within their budgets. totaled $1,461,805 less than budgeted. Expenditures The national economic recovery brought an upturn in our local economy resulting in increased spending. Revenues exceeded projections by $4,044,104. This is especially significant in the personal property tax area where approximately $1.4 million was collected over the estimate. This increase is viewed primarily as the result of the general economic recovery which enabled individuals to purchase new automobiles, and the initiation of proration. The Portsmouth Public Schools returned $1,018,675 primarily from their revenues exceeding estimates and Federal Governments. in fu~nds resulting from the State Interest from investments exceeded estimates, and totaled nearly $1.2 million. Due to the investment of allocated but unspent general obligation bond money, coupled with strong utility tax revenues, the general fund, for the first time, did not have to transfer funds to the debt service fund for the retirement of debt. This resulted in a savings to the general fund of over $t.4 million. Delinquent tax collections were higher than anticipated. This can be attributed to the strong collection efforts on the part of the Delin- quent Tax Collector, in cooperation with the City Attorney's Office, as well as to the economic recovery which allowed those with outstand- ing tax bills the opportunity to pay. Delinquent tax collections exceeded budget estimates by nearly $500,000. The above reports those important factors which have placed the City in this most positive and historic financial psoition, but reaching this plateau stems from more than just those specific facts. It is the result of a strong legislative financial policy adopted by the City Council and supported by the Municipal Finance Commission, coupled with those controls enacted to implement this policy through the Department of Finance. Further, it is the result of the hard work and realization on the part of all departments within the City to make do with the amounts allocated and to stretch the public's tax dollar as far as possible. This favorable financial position will enable us to reach the goal as set by the Municipal Finance Commission and the City Council to have resources sufficient to place the City in a position where emergencies could be met if they arise and future shortfall could be withstood. While I cannot emphasize too strongly the pleasure I take in reporting this good financial news to the Council, I must temper my enthusiam with some notes of caution. While the current financial position of the City is positive, future budgets will continue to be difficult. We must, and will, continue to ensure the maximum benefit of public funds, and to maintain a position of fiscal responsibility in dealing with future budgets." Motion of Mr. Gray and seconded by Mrs. Webb, the report to be received as information, and was adopted by unanimous vote. 84-469 - Letter from the City Manager recommending amendment to the Code, pertaining to sick leave, annual leave and legal holidays. "In order to equitably change leave policies, it is necessary to adopt such change effective January 1, 1985. Portsmouth allows the greate'st ~ccumulation of sick leave than any other municipality in Hampton Roads (18 days per year). Likewise, we have the least number of official holidays than any city in Hampton Roads. In addition, we carry over the lowest number of days for tenured employees and grant the lowest annual leave for tenured employees. ~ The attached memo from the Directors of Personnel and Finance will place this benefit for Portsmouth employees in line with other Hampton Roads communities and must be accomplishe effective January 1, 1985. Such action is necessary because at the present time bonus days for tenured employees are granted January 1. The new policy would grant bonus days effective on the anniversary date of the employees.