THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Friday, April 5, 1996 TAG: 9604040161
SECTION: VIRGINIA BEACH BEACON PAGE: 16 EDITION: FINAL
TYPE: Cover Story
SOURCE: BY KAREN WEINTRAUB, STAFF WRITER
LENGTH: Long : 207 lines
MANY PEOPLE HAVE said they are willing to pay higher taxes to keep a top-caliber school system, and now they will get their chance.
The city manager proposed Tuesday increasing the property tax rate by 3.2 cents, to give the schools more money and expand some city services for 1996-97. His proposal must be approved by the City Council, after six weeks of public input and changes.
The proposal would increase the tax rate from $1.188 per $100 of assessed valuation to $1.22. That means the owner of a $100,000 house would pay $1,220 in real estate taxes for the next fiscal year, compared to $1,188 this year.
Because tax assessments on the majority of city homes will go up this year, most taxpayers will end up paying more than $32 extra in real estate taxes.
``No one likes to recommend a tax increase,'' City Manager James K. Spore wrote in his annual budget message, ``and I would not, were it for any other purpose but education, nor would I if there was not new management and governance coming into place (in the school district).
``It is my hope and belief that the proposed budget for education will place our schools on a sound footing, that real reform will follow and that this crisis will be behind us,'' he wrote.
Spore recommended an $898 million operating budget - almost $50 million higher than last year's - and a separate spending plan for large-scale capital projects of more than $1 billion over six years.
His operating budget would give the school district about half of the $37 million increase it requested. The increase will make up for a $5.8 million cut in federal funding and the problems the district had balancing its budget in the last two fiscal years.
The City Council will discuss the school district's budget in detail at an April 23 workshop.
Virginia Beach Education Association president Vickie J. Hendley said the city should fully fund the School Board's budget and said a tax increase is justified to help the school system.
``Citizens in the city of Virginia Beach demand a high quality education for their children,'' she said. ``They've shown in the past they are willing to support a tax increase to provide that level of education.''
The primary focus of the city side of the budget is on maintenance. Few departments' budgets will be cut, but only a handful will show significant increases.
Payroll costs comprise about 60 percent of the budget, which calls for increasing city workers' salaries by an average of 3 to 5 percent with some getting as much as 26 percent more.
Spore said the city's goal is that ``Virginia Beach employees overall will be the best paid public organization in the Hampton Roads region.'' MEMO: MEETINGS ON THE BUDGET
April 2 - Budget introduced
April 9, 9 a.m. to noon - budget workshop
April 11, 4 to 6 p.m. - budget workshop
April 16, 1 to 4 p.m. - budget workshop
April 18, 7 p.m. - public hearing (Larkspur Middle School)
April 23, 3 to 6 p.m. budget workshop
April 25, 1 to 5 p.m. - budget workshop
May 9, 2 p.m. - public hearing (council chambers)
May 14, 2 p.m. - budget adoption (council chambers)
Citizens can address the council during the public hearings.
Workshops will be in the Council Conference Room on the second floor of
City Hall. VBTV-Channel 48 will air workshops and the second public
hearing, except the April 16 meeting, which will air live on Channel 47.
The first public hearing will not be aired live but will be rebroadcast
at 9 a.m. April 21 on VBTV-Channel 48.
DEPARTMENTAL BUDGETS
The operating budgets of these city departments are most affected by
the proposed 1996-97 spending plan (capital costs are not included in
comparisons):
COURTS
This year: $2,551,672
Next year: $3,016,463
Change: 18.2 percent
The department's operating budget is going up primarily because of
increased costs due to increasing workloads and new state mandates. The
department's capital budget includes funding for construction of a $6.7
million Virginia Beach Juvenile Detention Center, which would open in
1999.
CONVENTION AND VISITOR DEVELOPMENT
This year: $17,740,879
Next year: $19,728,206
Change: 11.2 percent
Increases in special taxes collected in the resort area will help
fund this department's budget. The extra money will provide more
regional and national advertising for the city's tourism business.
HEALTH DEPARTMENT
This year: $1,998,393
Next year: $1,781,907
Change: -10.8 percent
This department's budget is down because its emphasis has changed
from directly providing health care for children and high-risk
pregnancies to contracting out that care to health maintenance
organizations. The only budget increases are for the environmental
health division, which handles water well permits and restaurant
inspections.
HOUSING AND NEIGHBORHOOD PRESERVATION
This year: $6,127,114
Next year: $7,733,624
Change: 26.2 percent
Five new code inspectors will be added to the department next fiscal
year to step up the city's enforcement of maintenance problems that can
pull down property values and create problems for neighborhoods. The
department also will spend a $400,000 grant from the federal department
of Housing and Urban Development to provide housing assistance for
people with AIDS.
MENTAL HEALTH/MENTAL RETARDATION
This year: $16,297,154
Next year: $17,892,450
Change: 9.8 percent
Funding increases for this department will come primarily through
increases in federal Medicaid revenue. Community based mental health
services will be expanded, as will job training programs for the
mentally handicapped.
SOCIAL SERVICES
This year: $18,111,339
Next year: $18,078,981
Change: -0.2 percent
The department's budget will remain steady into the next fiscal year,
while the city begins construction of a new building on the department's
current Virginia Beach Boulevard site. The manager's proposed budget did
not include money for $819,000 in expanded services for the department.
Among the requests not funded: $240,000 for the creation of a child
welfare division that would provide better protection for at-risk
children.
PARKS AND RECREATION
This year: $15,984,270
Next year: $17,744,029
Change: 11 percent
The department will hire 27 new employees, primarily to staff the
Seatack Recreation Center, which is being expanded. The budget includes
a new program to upgrade city playgrounds, providing new gear that will
be fun for all children, from the most active to the physically
challenged. The city will buy the Camp Pendleton site along the General
Booth corridor from the state. The property already houses the Fire
Training Center, Seatack Fire Station, Red Wing Golf Course and Virginia
Marine Science Museum. Buying the land guarantees the continuation of
those operations.
POLICE
This year: $50,130,807
Next year: $52,492,970
Change: 4.7 percent
The department will hire 13 new officers under a federal community
oriented policing grant. The department will get $2.3 million more in
the next fiscal year, but had asked for an increase of nearly $10
million. Among the requests not funded: the hiring of six sergeants and
48 new officers; a take-home vehicle program; the creation of a
street-level narcotics unit with eight master police officers and one
sergeant; the implementation of a career development program; additional
overtime pay; and the purchase of a video booking system that would
allow officers to book suspects by video instead of in person. The city
also will begin construction of a new building for the Second Police
Precinct at the Oceanfront.
FIRE DEPARTMENT
This year: $21,626,929
Next year: $22,474,287
Change: 3.9 percent
The city will hire six new firefighters to help staff a truck that
has been idled because it lacked staffing. The budget does not include
$900,000 in Fire Department requests, mostly for an expansion of fire
suppression staffing and programs. The city also will begin construction
of a new building for the Creeds Fire Station.
ECONOMIC DEVELOPMENT
This year: $1,297,974
Next year: $1,308,680
Change: 0.8 percent
Construction of a higher education center, which combines programs
from Norfolk State and Old Dominion universities, will begin next year.
The new building is adjacent to the Tidewater Community College Campus
on Princess Anne Road.
MUSEUMS
This year: $6,656,850
Next year: $10,783,766
Change: 62 percent
The budget jump in this department will be used to staff and operate
the expanded Virginia Marine Science Museum, which will be completed by
summer.
FINANCE DEPARTMENT
This year: $7,639,929
Next year: $8,326,783
Change: 9.0 percent
The city will spend $883,000 to buy a new financial accounting system
to respond to criticism from the Special Grand Jury that investigated
the school district's financial problems. The city has used the same
accounting system for 18 years, but the jury concluded that a more
modern system would provide better and more timely financial
information, improving the district's fiscal control. The city and
school system are considering a merger of their accounting, payroll and
purchasing departments.
ILLUSTRATION: Photo
``No one likes to recommend a tax increase and I would not, were it
for any other purpose but education, nor would I if there was not
new management and governance coming into place (in the school
district).'' - City Manager James K. Spore
KEYWORDS: VIRGINIA BEACH CITY COUNCIL BUDGET by CNB