DATE: Wednesday, October 15, 1997           TAG: 9710150493

SECTION: LOCAL                   PAGE: B4   EDITION: FINAL 

SOURCE: BY MAC DANIEL, STAFF WRITER 

DATELINE: CHESAPEAKE                        LENGTH:   55 lines

NO TAX INCREASE ANTICIPATED NEXT YEAR

City Manager John L. Pazour said he will not be asking for any tax increases next year.

Pazour, who returned to City Hall on Tuesday to update the City Council on Chesapeake's finances, said that unexpectedly good revenues helped the city get through much of last year's shortfall. If they continue, as expected, a tax increase will not be necessary, he said.

However, more tough years lie ahead, Pazour warned.

``Until we get out of the shortfall,'' said Pazour, ``we don't have any new money to offset growth.''

Pazour has been recuperating for about 1 1/2 months after back surgery.

City officials had predicted a $7.6 million shortfall during the 1996-97 budget year. That was reduced to a $1.7 million gap by the unexpected increase in local revenues.

Pazour said the 1997-98 budget could also experience a boost in revenue that could reduce the expected shortfall of $7.2 to an estimated $2.4 million.

Emphasizing that the fiscal health of the city is sound, Pazour said it still would require some shrewd financial planning.

If there is a downturn in the economy, nonessential city services may have to be cut, taxes may have to be raised or, for every dollar added by the city to programs, another dollar will have to be cut, Pazour said.

The city is expected to spend $302 million annually.

That doesn't account for any spending on new items, such as the $3.5 million needed to fund 20 new police officers requested by Chief Richard Justice; $2 million for the additional firefighters needed to place four firefighters on each truck; $14 million for additional sheriff's staff to work in the new jail; and up to $30 million for a 1 percent pay increase for city workers over five years.

Nor does that include much of the millions of dollars requested in new construction projects needed by both the school district and the city.

Over the same period, the city is expected to take in between $291 million and $297 million in revenue.

Since 1986, the city has invested a total of $543 million in its public facilities. However, in the next five years, the city has $480 million in additional needs.

Of that total, $254 million comes from the schools. About $89 million of that request is funded; $165 million is not.

The council, concerned over the School Board's recent $200 million capital budget request, asked Pazour to meet quickly with the board to explain the city's fiscal situation.

The city has about $226 million in needs, with only $46 million of that already earmarked.

In other news, the City Council unexpectedly voted 9-0 to oppose the Southeast Parkway and Greenbelt as it currently exists. The road, one of Virginia Beach's top priorities, was as close to getting Chesapeake's approval as it has ever been several weeks ago before city officials discovered the current alignment would pass through a new Chesapeake subdivision.

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