THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Wednesday, April 17, 1996 TAG: 9604170374
SECTION: LOCAL PAGE: B8 EDITION: FINAL
SOURCE: BY TERRI WILLIAMS, STAFF WRITER
DATELINE: SUFFOLK LENGTH: Medium: 90 lines
Today City Council will study a proposed $130 million operating budget that calls for the biggest school-spending increase in seven years and more economic-development resources.
The proposed budget does not call for real estate tax rate increases, and it lowers the personal property tax rate by 5 cents. The budgetwill result in higher utility fees for all Suffolk residents, and it gives city employees a 3.3 percent raise.
The emphasis in the 1996-97 fiscal year is on funding development and schools and preserving neighborhoods through tougher deed enforcement.
``It is no longer a secret that Suffolk has a highly desirable quality of life,'' said City Manager Myles E. Standish, who unveiled the budget to the council this week. ``In order to maintain that quality, emphasis is necessary to encourage commercial and industrial development.''
The budget represents an $11.7 million jump in expenditures from the current year, when city officials spent $118 million on operations. City Council will begin studying the budget in its work session today. They must adopt it by June 30. A public hearing on the operating budget will be held May 1.
Earlier this month, the council approved its $40.3 million capital improvements budget, which funds construction and investment projects. The operating budget primarily funds the city's departments, such as fire, police and planning and is financed by money from property taxes, local taxes, utility charges and licenses, permits and fees.
The budget would drop the personal property tax rate from $4.35 to $4.30. The largest share of the operating budget - 52 percent - will go to schools.
Suffolk schools received $5.4 million in new state and federal funds, coupled with $300,000 in local support. But school officials - already confronted with crowded trailer classrooms and teacher salaries that are among the lowest in the state - wanted $600,000 from Suffolk.
``The city manager has not recommended full funding for the School Board,'' said Michael K. Brinkley, chief of finance for the Suffolk school district. ``If full funding is not approved, it (salaries) could become an issue.''
City Finance Director M. Christine Ledford said the schools are getting more state and federal money than in previous years.
In the midst of a growth boom, Suffolk officials are looking for ways to attract commercial and industrial business. City Manager Standish has recommended several initiatives, including:
Allocation of $250,000 for an industrial development closure fund that would help efforts to secure private sector investments and employment opportunities.
Funds to emphasize marketing industrial and commercial growth.
Continued investment in the Eastern Virginia Small Business Investment Corp.
Mayor S. Chris Jones said he's pleased that money will be allocated for business.
``Council has been discussing for some time the need for diversifying our growth,'' said Jones. ``We need to put more emphasis on marketing and closing deals.''
Neighborhood revitalization is also stressed.
The budget calls for $50,000 to pay for neighborhood improvements and $100,000 for the demolition of unsafe structures.
If the budget is approved, Suffolk residents will see a 3 percent increase in their utility fees. The base rate for water would jump from $2.81 per 1,000 gallons to $2.89. For sewer, the base rate would rise from $1.41 per 1,000 gallons to $1.45.
Standish said the user fee increase is needed because the cost of funding bonds for utility projects has jumped by $550,000.
The budget also recommends:
Three new firefighter positions for the northern corridor.
Additional resources for a program that provides recreational activities for children.
The council's approval of $200,000 in the Suffolk-Virginia Department of Transportation Revenue Sharing Program.
In addition to taking up the budget, the council will hold two public hearings today.
The first will allow citizens to discuss their concerns about real estate assessments. Suffolk's total assessments increased 6.84 percent - up from last year's 1.33 percent increase.
City officials stress that citizens' real estate tax rates won't go up. But residents will get a new assessment in the mail May 30.
Another hearing will allow citizens of the Palmyra subdivision - near the intersection of Pruden Boulevard and North Main Street - to discuss their concerns about a nearby planned medical complex expansion. About 30 residents have signed a petition protesting the rezoning approval by the Planning Commission. They contend the expansion will cause traffic problems.
KEYWORDS: SUFFOLK CITY COUNCIL BUDGET by CNB