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

DATE: Sunday, May 14, 1995                   TAG: 9505120256
SECTION: CHESAPEAKE CLIPPER       PAGE: 04   EDITION: FINAL 
SOURCE: BY FRANCIE LATOUR, STAFF WRITER 
                                             LENGTH: Short :   48 lines

BUDGET TO SPREAD CUTS CREATED BY LOWER REALTY TAX PLAN SEEKS TO MINIMIZE THE IMPACT ON THE QUALITY OF SERVICES TO CITIZENS.

In cutting a penny from the real estate tax rate, the Chesapeake City Council took action that will cut across an array of city department funds while minimizing the impact on the quality of services to citizens.

Working from a proposal offered by Mayor William E. Ward before approving the budget Tuesday, the council shaved $800,000 from personnel, insurance and school costs to compensate for the savings to taxpayers.

Council members unanimously adopted the one-cent cut as part of its $402 million operating budget, lowering the basic tax rate from $1.27 to $1.26 per $100 of assessed value.

The council also cut the rate for mosquito control from 2.5 to 2 cents.

Since most property falls in mosquito control districts, the average Chesapeake property owner will pay a tax rate of $1.28, down 1 1/2-cents from last year.

The largest trimming, $500,000, came from the city's self-insurance program, which protects the city against major liability. But the fund has $2 million more than is really needed, according to Budget Director Claude A. Wright.

``When you want to find the real money, it's there,'' said Councilman Alan P. Krasnoff. ``But you have to look.''

The city also forced the School Board to cut $367,000 from its budget.

State law prohibits the council from telling the school board what to cut, but it will give the schools less money to work with overall.

``We expect the same level of discipline and scrutiny from our schools that we have exercised within our own departments,'' said Councilman John M. de Triquet.

About $300,000 in savings will come from the city's budget for overtime and travel. Those cuts came from a proposal by Vice Mayor Robert T. Nance Jr.

Nance had originally called for $1.5 million in cuts from personnel-related costs he called ``nonessential,'' but later supported Ward's proposal for a smaller amount.

Another $362,000 will come from savings in electricity charges. Virginia Power reduced the rates for local governments statewide, including Chesapeake, this year. by CNB