The Virginian-Pilot
                             THE VIRGINIAN-PILOT 
              Copyright (c) 1995, Landmark Communications, Inc.

DATE: Friday, January 13, 1995               TAG: 9501120186
SECTION: PORTSMOUTH CURRENTS      PAGE: 03   EDITION: FINAL 
SOURCE: BY TONI WHITT, STAFF WRITER 
                                             LENGTH: Medium:   67 lines

CITY COUNCIL DELAYS DECISION ON HOW TO SPEND $8 MILLION

There were two things the City Council was sure about in discussing the building budget Tuesday.

The first was that it was not going to approve a tax increase.

The second was that it wanted to spend $8 million. Council members just didn't know where to spend the money so they put off the decision for six weeks so they could study their options.

The council decided it must answer a few questions before Feb. 28 - the date council members have set to approve the budget. Those questions include: Do folks really want a 3,500 seat stadium at Wilson High School? If so, what projects can the council eliminate to make up the $1 million for construction? How will it fund economic development initiatives, now that the council has killed a proposal to raise taxes?

``There's no money specifically for the Gindroz plan,'' Councilman James T. Martin said. ``We're making a serious mistake if we adopt this plan and don't have money in there for it. Another month - we need to take that time and really consider this.''

But City Manager V. Wayne Orton assured the council that money had been included in the budget for the economic development plan and that the city also is going after other sources of money including grants and private funds.

But the council delayed the vote until Feb. 28 so that it could consider public comments on the economic development plan created with Ray Gindroz, an urban design consultant. Council members also want to investigate ways to include more money in the building budget for economic development.

The council defeated a proposed 4-cent real-estate tax increase that would have raised $1 million for economic development. Half-a-dozen citizens opposed the tax in two public hearings.

Before the vote Orton challenged council to approve the tax increase.

``Other cities such as Baltimore, Charlotte, N.C., Alexandria and Norfolk, by taking charge of their own destinies, have ensured and continued their rebirth and new vitality,'' Orton said. ``All of these cities took bold steps to change their destiny. All of these cities realized it was worthwhile to assume political, economic and financial risk in order to facilitate investments with a realistic chance to produce a civic return.''

But, A.C. Palmer of West Park View told the council, it should look elsewhere for revenues.

``We can't afford a tax increase,'' Palmer said. ``You don't charge for boats. If people can afford a $100,000 boat, they can afford to pay taxes. If you get the taxes on boats, you don't have to raise real estate taxes.'' MEMO: SPEAK NOW . . .

The city's economic development proposal is to be considered at the

following public hearings and council meetings.

7 p.m. Tuesday, Jan. 24:

Joint Public Hearing - City Council and Planning Commission

1:30 p.m. Tuesday, Feb. 7:

Planning Commission Public Hearing for Recommendation on

Comprehensive Plan Amendment to include Vision 2005

7 p.m. Monday, Feb. 13:

City Council meeting; first reading for plan adoption

7 p.m. Tuesday, Feb. 28:

City Council meeting; second reading for plan adoption

KEYWORDS: PORTSMOUTH BUDGET by CNB