Laserfiche WebLink
187 <br /> <br />April 10, 1979 <br /> <br /> "The recommended operating budgets for the City of Portsmouth, Virginia for the 1979-80 <br />fiscal year were presented to you last Tuesday night at the public conference which was held <br />in the Council Chambers. Copies of the budget document have been available for viewing by the <br />public at each of the City's librar~ locations and in the City Clerk's office for over a <br />week, and newspaper advertisements have given notice of tonight's public hearing. <br /> <br /> The recommended operating budgets for 1979-80 have been prepared on the basis of service~ <br />being continued~genera]ly at their current levels. The operating budget for the General Fund <br />is recommended ak $64,965,866, which is about $4 million less than the total requests from <br />the departments. The recommended level includes the appropriation of $2,010,623 as a Council <br />contingeAcy from the available fund balance. When this item is adjusted from the total recom- <br />mended operating budget, the General Fund reflects a 7.6 percent increase over fiscal 1978-79 <br />operations, which in turn, reflected a 7.8 percent increase over the preceding fiscal year. <br /> <br /> I am submitting the £oll~wing gene.ral.~comments concerning the proposed budget £or your <br />information and discussion: <br /> <br />(2) <br /> <br />(3) <br /> <br />(4) <br /> <br />The recommended operating budget includes a recommended drop in the real estate <br />tax rate of 2 cents from the current ~1.30 to $1.28 per one hundred dollars of <br />assessed value. On average, the recommended tax rate Would result in'_a 7.6 <br />percent increase in the tax levy. The recommended ate will partially offset <br />the impact of reassessments which total nea~'ly $i00 Aill~on dolla~s.city~wAde~ <br />or 9.3 percent. <br /> <br />The recommended budget includes a 5 cents per 1,0OO gallons ncrease in the water <br />rate to be. effective September 1, 1979, on consumption after that date. On an <br />average consumption of 20,000 gallons per quarter, the insrease from 55 to 60 <br />cents per 1,000 gallons will result in an increased bill of $1.00 per quarter, <br />or 33 cents per month. The rate increase is necessary to maintain the water <br />system on a self-sustaining basis. Although the Public Utility Fund reflects <br />only a 2 percent ~ncrease over the1978-79 operating level, the current year's <br />operation were funded in part from the system's retained earnings. It should <br />be emphasized tha~ this increase is recommended based on the revenue needs <br />of the utility system, and does not reflect any recommended increase whatsoever <br />in the rate of return on investment to the General Fund. <br /> <br />An increase in incinerator rates is recommended from $5.50 to $6.75 per ton. <br />The rate increase would impact the~ rates charged to commercial haulers and <br />customer's served by the City's commercial refuse service. The residential <br />collection fee would not be changed. The rate increase is recommended based <br />on a review of incineration and landfill costs. The review revealed that <br />costs for inclne~ating and landfilliAg solid waste total $11.19 per ~on. <br />This reflects an increase over the $8.42 per ton cost of three years ago. <br />The increase is due primarily to the maintenance requirements of the 18 year <br />old incinerator. <br /> <br />At about the mid-point of the fiscal year, it will be necessary to increase <br />monthly and short-term parking rates in order to provide sufficient funds <br />to the Parking Authority for the fiscal year. It is anticipated that the <br />rate increase will go into effect January 1, 1980. The Portsmouth Parking <br />Authority is in the process of reviewing the rate structure, and will render <br />a decision thereon prior to the end of the calendar year. <br /> <br />A 5 percent general wage increase is recommended for all employees suoject <br />to the City's Pay and Classification Plan to be effective September 1, 1979. <br />In addition, a restructured ingrade progression of $ percent on anniversary <br />date is re.co~mended to offset the compacting effect the Federal minimum <br />wage law is'~having on the current Pay Plan. The salary increase for those <br />employees whose salaries are administered under the City Pay Plan would <br />average about 6.7 percent over the next fiscal year. <br /> <br />There is a net increase of 17 positions in the General Fund recommended for <br />1979-80. Of those 17 positions, 9 are currently being funded under the CETA <br />program. Due to the wage level limitations of the CETA program, the functions <br />per,formed by the employees in those positions can no longer be funded under <br />the CETA p~ogram. <br /> <br />As I have indicated before, in re~enacting the Comprehensive Employment and <br />Training Act the Congress restristed eligibility and employment criteria <br />such ~hat all new hires must be unemployed 10 to 15 weeks, and economically <br />disadvantaged. Persons employed under the program can stay in the program <br />only 18 months and be paid no more than $10,O00. In addition, the starting <br />salary for all new hires after April 1, 19?9 must average no more than <br />$6,636 in Portsmouth. It is as a consequence of the program's restrictions, <br />and in an effort to maintain services in vital areas, that these new positions <br />have been recommended this year. As the 1979-80 year progresses and the impacts <br />of the changes in the CETA program become more apparent, some of the services <br />which currently are being provided salary by CETA may need to be addressed. <br /> <br />At the pres.ent time, there is an unallocated fund balance of $4,020,623 in <br /> the General Fund. The 1979-80 Operating Budget as recommended utilizes <br />$2,O10,OOO of the fund balance for operations. The remaining balance of <br />$2,O10,623 is appropriated as a Council Contingency. The utilization of <br />those funds would be made only if authorized by the City Council. The Council <br /> <br /> <br />