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2:2
<br />
<br />May 13, 1980
<br />
<br />street opening permits, golf fees at Sleepy Hole Golf Course, fees for police
<br />reports and photographs, restructuring of electrical permits and inspections
<br />fees, minimum fees for construction permits, fees for grave openings, and the
<br />establishment of picnic shelter reservation fees au City Park~ and Churchland
<br />Park. These rates are based primarily on the costs to the C~ty for providing
<br />services and facilities, and are estimated To increase total revenues by
<br />$107,000 annually.
<br />
<br />(3)
<br />
<br />As recommended, the 1980-81 Operating Budget contains funding sufficient to
<br />fund a recommended general wage increase of -.5 percent for all employees
<br />subject to the City's Pay and Classification Plan. It is recommended that
<br />the increase be implemented 5 percent July 1, 1980, and 2½ percent January 1,
<br />1981.
<br />
<br />('4)
<br />
<br />(5)
<br />
<br />From the standpoint of greater state financial assistance to localities, either
<br />in the form of new sources of taxation or direct grants, we are fortunate in
<br />that the 1979 session of the General Assembly authorized and the 1980 session
<br />funded House Bill 599. In terms of its impact on the City of Portsmouth's
<br />1980-81 Operating Budget, additional revenue of $2,464,545 is estimated to be
<br />received in the form of a direct grant and assumption of e×penditures previously
<br />~a%.4 ~y the City.
<br />
<br />At the present time, there is an unallocated fund balance of $3,709,750 in the
<br />GeneraI Fund. The 1980-81 Operating Budget, as recommended, utilizes ~2,134,885
<br />for operations. The remaining balance of $1,574,875 is appropriated as an
<br />Emergency Budget Contingency. The Emergency Contingency and the contingency for
<br />miscellaneous expenses, taken together, provide contingency funds of 2.4 percent
<br />of the remaining General Fund.
<br />
<br />(6)
<br />
<br />Funding for education, recommended at $32,525,916, an increase of $380,000 over
<br />that presented to you on first reading after adjusting for the transfer of
<br />Sckool Traffic Guards, reflects a total budget increase of $2,607,100 or 9.5
<br />percent over t979-80 operations when adjusted for the $2.4 million dollar pass-
<br />through reimbursement. Of the $2,607,100 increase, the city portion of the
<br />~ncrease represents $2,324,206 or 89 percent. State funding is estimated to
<br />increase by only $357,857, or 3.2 percent, over the 1979-80 level.
<br />
<br /> As a part of the City Council's deliberations on the 1980-81 Operating Budget, I
<br />have provided you data which traces the distribution of school funding back to fiscal
<br />year 1972. Over the period local funding has increased $8,313,962, or 189 percent;
<br />while state funding has increased only $3,749,980, or 47 percent. If the General
<br />Assembly were providing funds for education at proportionately the same level as it did
<br />in fiscal years 1972 through 1975, the state would be funding nearly 50 percent of the
<br />total education budget versus the 39 percent estimated for 1980-81. In dollars, this
<br />would amount to nearly $3.3 million.
<br />
<br /> Whereas these statistics apply only in the case of one City, Portsmouth, there is
<br />evidence to suggest that this trend of shifting the cost of education from the State
<br />to the local governments is happening statewide. The funding pattern as described
<br />indicates that added mandates for Standards of Quality are not being adequately funded
<br />by the State. As a result of this situation, I have recommended to you that we inves-
<br />tigate the possibility of seeking legal redress to this funding problem.
<br />
<br /> The recommended Operating Budget represents an effort
<br />in priority areas consistent with the needs of the citizens
<br />to pay for such services. The recommended Operating Budget
<br />on final reading."
<br />
<br />to provide a level of service
<br />of Portsmouth and their ability
<br />is submitted for your approval
<br />
<br /> Motion of Mr. Barnes and seconded by Mr. Gray, to concur in the recommendation of
<br />the City Manager and to amend the ordinance, was adopted by unanimous vote.
<br />
<br /> On motion of Mr. Early and seconded by Mr. Holley, the ordinance was adopted, as amended,
<br />and by the following vote:
<br />
<br />Ayes: Barnes, Beamer, Early, Gray, Holley, Oast, Davis
<br />Nays: None
<br />
<br /> 80-144 - The following ordinance approved on first reading at the regular meeting of
<br />April 22, 1980, was taken up and read:
<br />
<br />"AN ORDINANCE AMENDING CHAPTER 35 OF THE CODE OF PHE CITY OF PORTSMOUTH,
<br />VIRGINIA, 1973, BY ADDING THERETO, ARTICLE XIV, PERTAINING TO A BANK FRANCHISE
<br />TAX."
<br />
<br /> On motion of Mr. Gray and seconded by Mr. Beamer, the ordinance was adopted, and by the
<br />following vote:
<br />
<br />Ayes: Barnes, Beamer, Early, Gray, Hol~ey, Davis
<br />Nays: Oast
<br />
<br />
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