Minutes 05/12/1981 - Laserfiche WebLink

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jr~ ~ May 1~,' 1981 5. Increase in the Unappropriated Fund Balance as recommended by the Municipal Finance Commission; 6. Funding of income shortfall for Portsmouth Parking Authority. ALTERNATE REVENUE SOURCE: The proposed increase from Si. SO per 5100. to $2.00 per S1OO. for machinery and tool taxes has oaused concern that such increase would seriously endanger the efforts of the City to attract new industry so vitally needed to broaden the tax base and pla the City at a disadvantage in combating the outward migration of existing industries. In response to this concern, a reduction in the amount of increase by fifty percent (S0%) to $1.?S per 5100. would reduce the proposed revenues by 558,400. To raise additional revenues to offset such decrease as well as fund the noted additional expenditures an increase of an additional one percent (1%) in the restaurant food tax and an additional one percent (1%) in the lodging tax is recommended. In addition to the above noted tax increase revisions, an alternative to the proposed increase in the permanent rates for water and sewer maintenance to a ten percent (10%) return on investment will result in increased revenue to the General Fund of 522S,729. The Public Utility Fund Budget would show the following rates per 1OO0 gallons of water consumption unde~ this alternative: Recommended Rates Alternative Rates Base Surcharge Total Base Surcharge Total .84 Water .72 .12 Sewer Main- tenance .38 .06 .83 .12 .95 ~.44 .42 .06 .48 SCHOOL FUNDING: The Manager's 1981-82 recommended School Budget indicated a 5.2?2% increase total funds over the current year and a 7.8% increase in local funds for education. The al- location of an additional $SO0,O0O. would increase the local funds allocated for education {o 1%.72% over the current year, and a total increase in School Funds from all sources of =.2%%. The increase in funds for the Gensral Government Budget would be 6.2S%. Such division of new monies constitutes more than an equivalent level of increased funding for the School Budget. · he Constitution of Virginia and the statutes of the State clearly establish that the responsibility of the City is no provide a portion of the cost of maintaining the educational program by local tax or from available funds. The School Board is, however, an independent local agency charged by law with establishing, maintaining and operating the public schools. In discharging these duties, it will be up to the School Board to determine its priorities in the expenditure of this lump appropriation. JAMESTOWN HIRE%TATION: The recommended Operating Budget included substantial service reduc- tions in m~.y departments for fiscal year 1981-82. It included recommended changes in services including the closing of the Jamestown Avenue Fire Station. An expenditure of S10,300. of the increased ~evenue noted above would permit the continued operation of the Jamestown Avenue Fir Station. This action will, however, necessitate a redeployment of engine and truck companies which will permit the elimination of one engine company and the consequent reduction of twelve rather than fifteen poszt~ons through attrition. UNAPPROPRIATED FUND BALANCE: The Municipal Finance Commission has recommsnded that the Unap- propriated Fund Balance be increased over the next 3 years to equal approximately five percent (5%) of the General Fund portion of the Operating Budget. The recommended 1981-82 Unappro- priated balance of $1,446,373. represents a 1.9% contingency fund. The transfer of 5750,000 from General Revenue Sharing to the Unappropriated Fund Balance will be an initial step toward meeting the Municipal Finance Commission recommendation. PORTSMOUTH PARKING AUTHORITY: The additional revenue noted above would permit the funding of a $35,000. subsidy to the Portsmouth Parking Authority during the fiscal year 1981-82 without reduction of the Unappropriated Fund Balance. In accordance with the direction received from City Council at the meeting of March 24, 1981, alternatives to a rate increase and/or continuing subsidy of the City are being explored. The adoption on final reading of the recommended Operating Budget with the alternatives noted herein would increase the 1981-82 Operating Budget from 575,995,594. to 577,222,823." ,,Recommended 1981-82 Operating Budget Revenues 5 75,995,594. ADDITIONAL FUNDING SOURCES: Increase Restaurant Food Tax rate to 5% 5290,200. Increase Lodging Tax to 5% 19,8OO. Reduce Increase Machinery g Tool Tax by 50% (S8,500.) Increase Return of Investment from Public Utility Fund 225,729. General Revenue Sharing Fund 750,000. 1,227,229. Revised Revenue S%7,222,823.