THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Wednesday, April 17, 1996 TAG: 9604170372
SECTION: LOCAL PAGE: B8 EDITION: FINAL
SOURCE: BY TONI WHITT, STAFF WRITER
DATELINE: PORTSMOUTH LENGTH: Short : 50 lines
Smokers got some good news Tuesday when the city's finance director found money that makes a proposed nickle-a-pack increase in the cigarette tax unnecessary.
The relief came with new estimates of increased revenue from the Business, Professional and Occupational License tax.
So the cigarette tax increase that was included in the proposed $258 million operating budget is likely to be eliminated.
``I don't think there was any sentiment to raise it,'' said Mayor Gloria O. Webb in heading off a discussion of the tax, ``and she's found a way not to raise it.''
Retired firefighters and police officers also got some good news when Johnna Whitaker, the city's finance director, announced that there's enough money in the budget to give them a 3-percent raise this year. The catch is that the increase in their pensions, at a cost of $300,000, would only be for one year and the council would have to approve additional money in future years.
The City Council also has several other options in its budget to fund pension increases. One would give a permanent 2.8-percent increase for all those who retired on or before July 1, 1985. That increase would cost about $275,000.
Other options include a 2.8 percent raise for all pensioners, which would cost the city $2.3 million - money not included in the proposed budget.
The School Board has requested another $1.2 million in its budget, but the council is likely to refuse. The state increased funding to the schools by $6.5 million - including $4.1 million in discretionary funds. That's a 7.6 percent increase in school funding from the previous year.
The city will hold a budget work session on Monday, where the School Board's representatives are likely to be asked how they will spend the added $4.1 million in state revenues.
Officials with the Chamber of Commerce had also asked the city to cut stormwater fees in half - which would cost the city an estimated $1.2 million - a move that officials are not recommending because there is no way to make up for that revenue.
The City Council is expected to approve the operating budget and the capital improvement budget on Tuesday.
KEYWORDS: CIGARETTE TAX by CNB