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<br />270 <br /> <br />WEDNESDAY, MAY 7, 1986 <br /> <br />ALTERNATIVE NO. 2 <br /> <br />Transportation Allowance: The cut of $1,400 is for the <br />same reason as set forth in Alternative No.1. <br /> <br />Fire Truck: A cut of $15,996 will enable the City to <br />obtain this equipment on a four (4) year lease purchase <br />arrangement as opposed to the five (5) year arrangement <br />under Alternative No.1. <br /> <br />Air Condition Jail: The cut of $21,000 is on the <br />same basis as set forth in Alternative No.1. <br /> <br />Pay Reclassification Adjustment: This budget reduction <br />of $52,723 results from altering the proposed Police <br />Department range reclassifications as described in <br />Alternative No.1. <br /> <br />Street Construction: <br />proposed C1earview <br />Alternative No.1. <br /> <br />This <br />Drive <br /> <br />cut of $42,000 is for the <br />project as explained in <br /> <br />In summary, I wish to state that much effort went into the <br />preparation of the proposed FY86-87 budget. I sincerely believe <br />that the programs and functions as proposed are realistic and <br />needed. <br /> <br />It was not an easy choice to propose a tax rate increase to <br />provide the needed revenue to pay for these programs. I would <br />mention again that the projected revenue from the proposed tax <br />rate increase equalled the net increase in local cost of <br />Education ($473,218). The amount of the School Budget, agencies <br />and organizations to be included in the City Manager's budget <br />are not within the control of the City Manager. In presenting a <br />balanced budget we recommended transfers and a tax increase <br />required to balance the budget. <br /> <br />I feel that the budget problem that we are experiencing for <br />FY86-87 is one that began several years ago as costs increased <br />without a commensurate increase in the overall tax base. For <br />this reason, I would suggest that careful consideration be given <br />to the need to expand the City's sources of General Fund revenue <br />to meet the City's financial requirements in the years ahead. <br /> <br />As stated previously, Martinsvi11e's tax rate is low as compared <br />to most cities in Virginia (See Exhibit III). Care should be <br />exercised to maintain a tax base that will suffice when <br />transfers from the utility funds to the General Fund will <br />fluctuate below the current and past years level of transfers or <br />when the balances in the various utility funds drop below an <br />acceptable level needed as a major contingency fund. <br /> <br />~----'--,.._~._,-'~-"--~--,...._-_._,_.,_.,'"^..,'~"'--,..,...----"-"."".-_~., ..,."_...<.,~,,,.,,.,,,,--,-....._--~-,---,~~.,... <br />