THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Wednesday, September 13, 1995 TAG: 9509130408
SECTION: LOCAL PAGE: B2 EDITION: FINAL
SOURCE: BY KAREN WEINTRAUB, STAFF WRITER
DATELINE: VIRGINIA BEACH LENGTH: Medium: 53 lines
The City Council, frustrated about the school district's financial mess and eager to get it resolved, passed a resolution Tuesday outlining its requirements for a bailout.
The city will cover the district's $7.4 million deficit from last school year, but not before council members have a better idea of what went wrong and not until the school board agrees to adopt some city-recommended solutions.
The city, which finished the year with a $14 million surplus, has little choice but to cover the deficit. The city's debt advisers have warned that if the crisis is not dealt with quickly and effectively, the city will have trouble borrowing money for road and building projects.
But the council does expect the district to lay out a plan for repaying the money over the next three to five years, either by selling assets no longer needed for education or by obtaining funds from other government sources.
The only controversial recommendation, several council members said, is City Manager James K. Spore's proposal to take over the district's payroll, accounting and purchasing responsibilities.
Spore said the consolidation would avoid costly duplications.
City Council member Louisa M. Strayhorn, a former School Board member, said she wants more detailed information before making a final decision on consolidation.
The School Board and the former superintendent have resisted efforts to combine school and city services, although several small departments have already been merged.
``That's bogus,'' board member Ulysses V. Spiva said Tuesday night of the proposal. ``Sometimes the little bit of money you save doesn't merit what you would lose, mainly the ability to do what's right to educate children.''
Spiva doesn't think the city should be trusted with oversight of the district's books.
In other business Tuesday, the City Council renewed its commitment to the Corporate Landing office park and received its third annual citizens' satisfaction survey.
For the third year in a row, the survey was overwhelmingly positive, finding that well over 90 percent feel that the Beach is a good place to live.
After lying fallow for six years, construction is now under way at four different sites in the Corporate Landing office park, located near the intersection of General Booth Boulevard and Dam Neck Road.
A task force studying the project recommended zoning changes and accelerating plans to add amenities and landscaping.
Council members approved the the task force's general concepts. by CNB