DATE: Friday, April 11, 1997                TAG: 9704110788

SECTION: LOCAL                   PAGE: B9   EDITION: FINAL 

SOURCE: Karen Weintraub

LENGTH: 52 lines

CITY BUDGET: VIRGINIA BEACH ILLUSTRATION: Graphic

Background: Virginia Beach was built on its great school system,

middle class values and seemingly endless potential for growth. But

after 33 years, social problems are mounting, infrastructure is

aging and development isn't the cure-all it once was. The biggest

decision the council faces this budget season is whether to

dramatically increase school funding, which would require a real

estate tax hike.

The proposed budget: The city plans to spend $957 million next

year on day-to-day operations and add just under $100 million to its

six-year capital plan. The city manager has proposed raising taxes

on water, electric, phone and gas bills, which would amount to an

additional $21 to $29 annually for most residents. He has also

suggested raising the stormwater management fee by $5.76 next year

to help reduce a backlog of drainage projects.

The operating budget, which is $50 million higher than last

year's, includes money for 15 new police officers, a 4 1/2-percent

pay increase for most city workers, a new curbside recycling program

and a $13 million spending increase for schools.

New developments:

The council Thursday asked schools Superintendent Timothy R.

Jenney and budget director Donald A. Peccia for details about their

request for extra funding. The council also considered whether to

provide $526,000 more to the fire department to add 13 firefighters

at stations in the less-populated parts of the city. Now, because

trucks are staffed with only three firefighters instead of four,

crews have to wait for a second truck before entering burning

buildings.

Next step: The council will hold a budget workshop Tuesday from

10 a.m. to noon to finish its review of the police department's

budget and address infrastructure spending. It is scheduled to

approve the city budget May 13.

To get involved: The council will hold public hearings: April 17

beginning at 7 p.m. at Princess Anne High School and May 6 at 2 p.m.

in Council Chambers. The School Board will hold a public hearing and

meeting April 20, beginning at 6 p.m. in its board room to decide

whether to ask the council to raise taxes. Copies of the proposed

city budgets are available in Virginia Beach public libraries.

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