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

DATE: Wednesday, April 10, 1996              TAG: 9604100357
SECTION: LOCAL                    PAGE: B3   EDITION: FINAL 
SOURCE: BY TONI WHITT, STAFF WRITER 
DATELINE: PORTSMOUTH                         LENGTH: Medium:   52 lines

PORTSMOUTH JUGGLES BUDGET, DEMANDS

Police and firefighters asked for more money for all city employees. The schools need extra money for maintenance. And a bunch of folks turned out to say they are opposed to raising the taxes on cigarettes here.

In addition, the Chamber of Commerce Tuesday asked that the city's storm water fee be cut in half, rather than be raised as recommended.

The requests made at the City Council's public hearing on the operating budget Tuesday would cost the city more than $6 million. Giving raises to all retired firefighters and police officers would cost an estimated $2.23 million.

The police and firefighters union asked for a 5-percent cost-of-living increase for all city employees, which would cost more than $2 million. That would be added to the 3-percent increase the city manager is already recommending.

Lloyd Beazley, president of the police and firefighters union, said the city ``owes'' its employees, whom he said ``haven't had a raise in three years.''

He also asked that emergency medical technicians and firefighters be given an extra raise.

The school board asked for an additional $1.2 million to repair roofs at two schools and to do other essential maintenance, said School Board Chairman J. Thomas Benn. Without the money, Benn said, maintenance at the schools will be have to be put off another year.

To meet all the requests, the city would have to cut other items in the budget or raise the $1.36 tax rate by nearly 25 cents - a move the city's municipal finance commission strongly opposes.

Councilmen Cameron C. Pitts and Bernard D. Griffin suggested using money designated for the city's financial reserves to give police and fire retirees a raise. The city has earmarked $500,000 for the reserves, a savings account that is used to meet expenses when revenues are not coming in to the city.

Pitts said he would favor giving retirement raises only to officers who left more than 10 years ago - which would cost the city $200,000 to $300,000, he estimated.

Several council members also said Tuesday that they are opposed to raising the city's cigarette tax, already the highest in the region, from 30 cents to 35 cents per pack. MEMO: The City Council will hold a budget work session April 16 at 5 p.m.

KEYWORDS: PORTSMOUTH BUDGET by CNB