THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Sunday, July 30, 1995 TAG: 9507280238
SECTION: PORTSMOUTH CURRENTS PAGE: 12 EDITION: FINAL
SOURCE: BY SHAWN M. TERRY, STAFF WRITER
LENGTH: Medium: 63 lines
Revenues for the city are up $2 million from last year, according to a preliminary monthly financial report. Officials say the increase is a healthy sign for the city because revenues had not significantly increased in the last five years.
Deputy City Manager Johnna R. Whitaker noted, however, that the increase still leaves the city with less money than it had anticipated for fiscal year 1995.
Changes in the way personal property taxes were assessed, reductions in expenditures and developments that continue to generate additional real estate taxes have helped improve the city's cash flow, Whitaker said.
``The city still has a way to go before it gets its financial strength back,'' said Whitaker, who presented the preliminary report to City Council during Monday's public work session. The report, which was prepared on July 24, indicated accruals of revenues were not complete for fiscal year 1995.
The biggest revenue increase was generated from the city's property taxes and charges for services, Whitaker said.
The city also saved money by laying off city employees and delaying filling vacant positions at the end of fiscal year 1994, Whitaker said.
Ronald W. Massie, 11 days into his appointment as acting city manager, said he was relieved that operating revenues exceeded operating expenditures. He cautioned that it was too early to celebrate the report's findings but said it was a healthy sign for the city.
``If those numbers hold out it means that the city will not further erode its reserve funds,'' Massie said.
The general fund operating reserves was $6.8 million in fiscal year 1994 down from $7.2 million from the previous year.
``We're going to analyze the figures,'' said Massie. ``And once we have the final numbers, then we will be in a position to celebrate. Whether it's a blip on the graph or not, it's too early to draw a conclusion but it's a healthy sign.''
The city's sales tax numbers appear to be up from prior years, said Whitaker, adding that she hopes to see an increase. Over the past five years, the sales tax has declined from $5 million to $4.2 million in fiscal 1994. It is anticipated to increase in fiscal year 1995 to $4.3 million.
``That's an indicator of how the retail sales are doing in the city,'' Whitaker said.
Vice Mayor Johnny M. Clemons, who presided at the work session, and Whitaker agreed that the conservative approach to reducing expenditures isn't Portsmouth's economic salvation but noted that the changes have been critical elements in balancing the budget this fiscal year.
``We have good news but it's not the greatest of news,'' Clemons said. ``But any time we move in the right direction, that's the way we need to go.''
The city's financial statements should be available in October once the year-end audit has been completed, Whitaker said.
Despite the city's fiscally conservative mood which caused many reductions in expenditures, Whitaker said goods and services for the citizens of Portsmouth were adequately maintained.
``By all means, yes,'' Clemons said. by CNB