THE VIRGINIAN-PILOT
Copyright (c) 1997, Landmark Communications, Inc.
DATE: Wednesday, January 8, 1997 TAG: 9701080341
SECTION: LOCAL PAGE: B1 EDITION: FINAL
SOURCE: BY MAC DANIEL, STAFF WRITER
DATELINE: CHESAPEAKE LENGTH: 53 lines
In his first meeting with the City Council, City Manager John Pazour watched his staff deliver some tough news - either another $14 million will have to be raised or a number of essential projects may not be built over the next two years.
In the first official presentation of the five-year capital budget, City Budget Director Claude Wright announced that the city could come up $14 million short in paying debts and funding projects over the next two years - $5 million in the first year and $9 million in the second.
Pazour said he plans a detailed review of the city's finances and some strategy to better deal administratively with future growth in Chesapeake.
``We must have a very strong on-going hold on the financial situation,'' Pazour said. ``The issues are going to get much tougher.''
Pazour was asked by members of the council to come back with recommendations and strategies for meeting the projected shortfall.
Earlier, Pazour had focused on conservative and prudent fiscal management when describing his priorities for running the city.
Among his goals, he said, were controlling the more than 5,000 acres of residentially zoned land that remain undeveloped in Chesapeake; bolstering the community of South Norfolk, and attempting to preserve the character and charm of southern Chesapeake as growth and the proposed Route 168 make inroads there.
Pazour also said he would likely realign the city's management structure, which he said was ``the flatest organization'' he had ever seen.
Wright has proposed several fee and tax increases that could generate about $6.8 million annually.
They include:
Raising the fee for using emergency 911 service from 50 cents to $1.95.
Raising the local cigarette tax from 20 cents per pack to 30 cents.
Levying a 10 percent tax on the first $30 of a cellular phone bill.
Charging 10 percent on the first $15 of a cable television bill.
The council has made no decision on any of the proposed taxes or rate increases.
The proposed capital budget includes:
Giving the Department of Economic Development $3.2 million to develop new industrial parks - a 113 percent increase over last year.
Funding a new Master Road Plan for the city for about $750,000.
Increasing funds for road and related projects by 56 percent.
The city's first public hearing on the proposed capital budget will be held at 6:30 p.m. Tuesday during the regular council meeting. ILLUSTRATION: Color photo
Chesapeake City Manager John Pazour was asked to make plans for
dealing with a shortfall.
KEYWORDS: CHESAPEAKE CAPITAL BUDGET