THE VIRGINIAN-PILOT
Copyright (c) 1997, Landmark Communications, Inc.
DATE: Wednesday, February 19, 1997 TAG: 9702190384
SECTION: LOCAL PAGE: B3 EDITION: FINAL
SOURCE: BY MAC DANIEL, STAFF WRITER
DATELINE: CHESAPEAKE LENGTH: 51 lines
A week before it must pass a capital budget that has contained more headaches than handouts, the City Council on Tuesday found it has an extra $1.9 million to spend.
Although that's only one-tenth of what is needed to cover a shortfall in funds over the next two years, it is enough to cover several key, previously unfunded projects.
They include the realignment of Kempsville and Greentree roads, lighting for the Great Bridge baseball complex, and a satellite office in Deep Creek for the commissioner of revenue and treasurer's offices.
The council has yet to formally approve the new projects, which total about $1.1 million.
City Manager John L. Pazour recommended that the money be spent on one-time capital projects rather than apply it toward the coming expenses.
Pazour said that since the money is surplus capital funds from previous projects, using it to cover the shortfall would disrupt the city's accounting without solving the crisis.
Although the city's books are now fine, Chesapeake is facing a $19 million budget shortfall in the combined operating and capital budgets over the next two years.
The crunch came as a result of a downturn in growth, tax revenues and the cost of maintaining and operating school and road projects that were undertaken to cope with growth.
The City Council must approve the capital budget by the end of the month.
Pazour recommended that the council address the shortfall when it approves its operating budget in May, since most of the money is from costs associated with running or maintaining the projects, not building them.
At that time, the council will consider raising some taxes or fees to increase revenue.
Chesapeake is expecting $1.5 million less in revenue this year, thanks in part to a natural downturn in development and council's efforts to control growth.
Pazour recommended that the City Council approve the capital budget with only an increase in the local 911 emergency service fee from 50 cents per month to $1.95 per month.
The money would be used to help pay for a new emergency radio system.
Chesapeake's current system is considered outdated and potentially dangerous to police and firefighters.
Pazour last week called for a moderate hiring freeze as well as a moratorium on new city projects until finances improve.
KEYWORDS: CHESAPEAKE CITY COUNCIL BUDGET