THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Tuesday, February 27, 1996 TAG: 9602270003
SECTION: FRONT PAGE: A10 EDITION: FINAL
TYPE: Editorial
LENGTH: Medium: 53 lines
As anyone who has ever paid every single monthly bill and still had money left in the checking account knows, money can bring warm feelings. Love is better, but money's good.
These days, Portsmouth must glow with warmth.
After years of essentially living paycheck to paycheck (a method familiar to many), the city has an $8.5 million reserve, and it's supposed to grow to $9.1 million by June. Staff writer Toni Whitt reported last week, ``Gone are the days of borrowing from the school's lunch fund to make sure teachers get paid.''
A number of people deserve credit, but a key move came 18 months ago, when then-City Manager V. Wayne Orton created the position of chief financial officer and had Johnna Whitaker fill it.
She ensured that estimates of income were conservative. And she did something every citizen would wish for. ``We've taken the mystery out of city finances,'' she said. ``We've been up front with the council. . . .''
The present city manager, Ronald W. Massie, credits his predecessor with steadying and turning around the city's finances. Now Massie is moving to make the city ever more efficient.
He and Whitaker worked a neat deal that gained the city a low interest rate on $40 million in bonds. He wants the city to sell land it owns but doesn't need and acquire useful land, while he pushes for economic development. Who could argue with that?
Under Whitaker, the city's money has been placed in an interest-bearing account. It used to be spread around in checking accounts that paid no interest. The city may be able to invest some of its surplus in higher-yielding six-month investment accounts.
In other words, the city is doing the smart things that a business must do to survive.
Some cost-cutting has been painful. Police overtime has been curtailed, a move some officers say has hamstrung the department. City Manager Massie says public safety has not been jeopardized.
With the reserve, which could grow in a few years to $11 million, the city no longer has to rob Peter to pay Paul, usually an expensive proposition. Given its small tax base, Portsmouth cannot afford expensive propositions. The city's bond rating, which Moody dropped last year from A1 to A, should rise sooner than later, bringing additional savings when the city borrows money.
Financially speaking, Portsmouth is gaining strength. Congratulations are owed to Whitaker, Orton, Massie and others.
KEYWORDS: PORTSMOUTH BUDGET PORTSMOUTH FINANCES by CNB