THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Wednesday, April 26, 1995 TAG: 9504260464
SECTION: LOCAL PAGE: B1 EDITION: FINAL
SOURCE: BY TONI WHITT, STAFF WRITER
LENGTH: Medium: 79 lines
The price of water, cigarettes, golf, garbage-collection and owning real estate will rise in Portsmouth beginning July 1.
The real-estate tax rate will jump 4 cents, to $1.36 per $100 of value. The $1 million in revenue it produces will be used to hire and equip 21 new police officers.
The City Council voted unanimously Tuesday night to approve the rate increases after no one showed up at a public hearing to oppose them or to even discuss the proposed 1995-96 operating budget. At the one other public hearing, only one person opposed the tax increases.
The council late Tuesday approved most of the items in the city manager's proposed budget with little discussion.
The city has been struggling to meet its day-to-day expenses. Portsmouth residents have long been asking for more neighborhood policing, and the council has committed to improving the city's image. The council proved it was serious about those goals when it approved the increases.
A small increase in the water rates and a $2-a-month increase in fees for garbage collection were due to federal mandates, and the council approved those with little discussion.
Portsmouth has the lowest water rate in the region. The increase will set the rate at $2 per 1,000 gallons of use. The current rate is $1.95 and the average water bill for residential customers will increase by 26 cents per month.
Water rates in other cities range from $2.50 to $3.65.
Tax on a pack of cigarettes will increase from 25 cents to 30 cents.
Johnna Whitaker, the city's chief financial officer, estimated the cost of all the tax, water and garbage increase will be nearly $5 a month per homeowner.
The overall budget proposal was not approved by publication deadline.
In a recent work session the council had discussed only minor changes to the proposed budget, including making contributions to the Child Abuse Center of Hampton Roads and the Fine Arts Commission.
The only increase that received any opposition Tuesday was a proposal to raise admission to the Children's Museum in January. The council voted 6-1 to increase the fees on Jan. 1, 1996. The fine arts commission opposed the increase and Councilman P. Ward Robinett voted against it.
In his budget proposal City Manager V. Wayne Orton suggested increasing the city's financial reserves by $700,000 to help the city meet its day-to-day cash flow needs.
In the past, the city has relied on revenues from the public utilities, such as water, to augment the budget.
Stricter federal regulations for clean water do not permit the city to use water revenues to meet daily expenses, but require them to be reinvested in the water treatment plant.
Orton a [lso proposed setting aside] $500,000 for economic development - one of the council's top priorities.
The budget also included cutting $1 million from the city's contribution to the school system. The schools did not protest the budget cut.
The council in December had refused a 4-cent hike in the real estate tax rate to fund its capital improvement budget.
Orton had wanted to use the money then for economic development efforts.
Most employees would not get a raise under the proposed budget. The city manager has proposed moving toward a new pay-for-performance plan within the next two years.
Over the next two years, city employees who earn less than the minimum range for their job descriptions, based on a consultants study, will receive a raise to the minimum salary. ILLUSTRATION: Graphic
Portsmouth's Budget
[dates concerning Portsmouth's budget]
[March 28, budget proposed]
[April 25, budget approved]
[For complete listing of dates, see microfilm]
KEYWORDS: PORTSMOUTH CITY COUNCIL BUDGET PROPOSED REAL ESTATE TAXE
INCREASE by CNB