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173
<br />
<br />79-88
<br /> Report from
<br />
<br />the Municipal
<br />
<br />March 13, 1979
<br />
<br />Finance Commission:
<br />
<br /> "The work schedule for the 1979-80 budget cycle calls for a
<br />Municipal Finance Commission to be furnished to the City Council
<br />Commission met on March 6, 1979, to complete the funding analysis,
<br />below.
<br />
<br />funding analysis by the
<br />on March 13, 1979. The
<br />and a report is furnished
<br />
<br />TOTAL REVENUE ESTIMATES
<br />
<br /> Current revenue projections for 1979-80 indicate a total of approximately $62.3 million
<br />for the City's General Fund, as compared to $58.5 million for the currentfiscal year. This
<br />level represents an increase of slightly less than 7 percent, end includes S1.4 million of
<br />the unappropriated fund balanze in each of the two fiscal years' estimates. These revenue
<br />projections are necessarily dependent upon a number of assumptions, some of which may require
<br />modification as the full budget process develops.
<br />
<br />GENERAL ASSEMBLY ACTIONS
<br />
<br /> Actions by the recently adjourned General Assembly resulted in several greatly needed
<br />increases in revenues from the State. The allocation of State funds for highway maintenance
<br />and construction was increased from $2,500 to $3,800 per lane mile for primary streets and
<br />from $1,500 to $2,200 for secondary streets. This increase of approximately fifty percent
<br />will provide an additional $660,000 to the City of Portsmouth in fiscal year 1979-80. The
<br />per lane mile rates had not been changed since 1973, and during the intervening time span,
<br />the costs associated with street maintenance have more than doubled. Importantly, the
<br />recently passed legislation provides for annual increases in the funding rate via an escalator
<br />mechanism.
<br />
<br /> Legislation also was passed which will require State A.B.C. profits from the sale of
<br />alcoholic beverages to be distributed to localities on a quarterly basis instead of annually.
<br />The change to quarterly distributions will cause the City to receive its share of the profits
<br />for three additional quarters during the 1979-80 fiscal year. The profits for these addi-
<br />tional three quarters are in excess to the annual distribution normally received for the prior
<br />year, and it is estimated that the one-time added revenue will amount to approximately
<br />$382,000.
<br />
<br /> The most significant action by the General Assembly regarding revenues was the passage
<br />of H.B.599, the annexation package. However, that legislation will not provide any funding
<br />until the 1980-81 fiscal year. Preliminary information is that it wiH ~ncrease Portsmouth's
<br />funding by about $2.4 million at that time.
<br />
<br />FUNDING FOR EDUCATION
<br />
<br /> Revenue projections for the Portsmouth Public Schools for 1979-80 compare to the current
<br />year's estimates as follows:
<br />
<br />Source 1978-79 1979-80
<br />
<br />State
<br />Sales Tax
<br />Federal
<br /> Total
<br />
<br />Returned
<br />
<br />$10,942,733
<br />3,614,288
<br />963,000
<br />$15,520,021
<br />
<br />$11,072,438
<br /> 3,997,085
<br /> 1,217,000
<br />$16,286,523
<br />
<br />$766,502 Increase 4.9%
<br />
<br /> The School Budget proposed by the School Superintendent totals $2?,684,038, as compared
<br />to the current appropriation of $25,494,038. Based on this proposed level of funding for
<br />1979-80, required funding by the City would be as follows:
<br />
<br />City Funding
<br />
<br />1978-79 1979-80 Proposed
<br />$ 9,617,017 $11,007,215
<br />
<br />$1,390,198 - 14.5%
<br />
<br /> In terms of the distribution of school funding, the $11,007,215 City portion would re-
<br />present 40 percent of the total School Budget, as compared to 38 percent this year. As a
<br />percentage of local revenues, the proposed School funding represents 41 percent of the City's
<br />total local revenue; whereas, currently 39 percent of the City's local revenue is allocated
<br />to education.
<br />
<br /> These data pertaining to
<br />without any recommendation at
<br />be included in the Commission's
<br />the first of April.
<br />
<br />REAL ESTATE TAXES
<br />
<br />School funding were reveiewed by the Municipal Finance Commissio
<br />this time. A recommendation level of funding for education will
<br />full budget recommendation, to be furnished to Council around
<br />
<br /> Real estate taxs of $14,080,000 are included in the 62.3 million revenue projections~
<br />for 1979-80, as compared to the $12,800,000 estimate for the current fiscal year. No recom-
<br />mendation of the tax rate is made at this time, as the full budget review will need to be
<br />accomplished before the Commission is in a pos~ition to make such a recommendation.
<br />
<br /> The City Assessor estimates that real estate assessments for 1979-80 will average 9.3
<br />percent higher than for the current fiscal year, on a city-wide basis. Bases on an average
<br />collection rate during the year of levy of 96.3 percent, and including estimates for continui~
<br />
<br />
<br />
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