The Virginian-Pilot
                             THE VIRGINIAN-PILOT 
              Copyright (c) 1996, Landmark Communications, Inc.

DATE: Wednesday, March 13, 1996              TAG: 9603130504
SECTION: LOCAL                    PAGE: B3   EDITION: FINAL 
SOURCE: BY TONI WHITT AND MIKE KNEPLER, STAFF WRITERS 
DATELINE: PORTSMOUTH                         LENGTH: Medium:   52 lines

SPENDING IN PORTSMOUTH'S 1996-97 CAPITAL IMPROVEMENT BUDGET IS TIGHT

If you're looking for a big spurt in city-sponsored construction this year - forget it.

While things are looking up economically for the city, spending on locally initiated capital improvement projects will remain conservative, according to 1996-97 budget figures proposed to the City Council on Tuesday.

The budget includes $3.9 million in continued funding for the new I.C. Norcom High School. The school's total cost of $37.8 million is being spread over several years. .

The budget also reflects the city's Vision 2005 economic development plan. It includes $3.7 million for construction of a new inlet and ferry dock at the foot of High Street.

Technically, the proposed capital improvement budget totals $28 million, which is about a 50 percent increase over this year's $18.6 million capital spending plan. But the amount includes $12.4 million in federally mandated improvements to a water-treatment plant.

However, money for improvements at the water-treatment plant will come from a public-utility revenue bond, not from tax-supported general obligation bonds, said Robert Creecy, Portsmouth's director of management and legislative affairs.

Here are some other highlights in the proposed capital budget:

$800,000 for the federally mandated replacement of six city-owned underground fuel tanks and building a vehicle-wash facility to prevent environmental run-off at the public works compound. The money will also be used to phase out the landfill adjacent to Craney Island, as part of a state mandate.

$990,000 for neighborhood street, sewer and drainage improvements in Brighton and South Portsmouth, and street work in Simonsdale and North Truxtun.

About $1 million in assorted projects., including design work for expansion of the Children's Museum and a new fire-police headquarters, proposed near Washington Park.

About $2.5 million in federally funded development activities in Park View, Prentis Place, Midtown and Hattonsville, and with the Crawford Project and the Tidewater Community College Visual Arts Center. MEMO: The Portsmouth City Council and the Planning Commission will hold a

hearing on the proposed capital improvement budget at 7 p.m. on March 26

in council chambers.

KEYWORDS: PORTSMOUTH CITY BUDGET by CNB