Minutes 03/11/1975 - Laserfiche WebLink

Home Browse Search

4 TUESDAY MARCH 11, 1975 Council acknowledged the following statement, prepared by Councilman Greene, as well as a request by Councilman Fitz-Hugh of City Manager Noland for a capital improvements program as well as operating needs of the City for the next five years: At the last Council meeting, I offered in discussion some figures relating to past and current budgets. I would like to go on record tonight with an explanation of the figures, and their relationship to Council's decision as to whether or not to pursue funds under the Housing and Community Development Act of 1974 or any other state and federal programs. On May 31, 1973, City Manager Tom Noland released his 1973-1974 budget report. He ended his report with a section entitled "Down the Road." In this section, Mr. Noland warned the City that "normal revenue growth is not likely to provide for inflation and anticipated additional needs." Mr. Noland cautioned against expecting windfall dollars to meet upcoming needs. He stated, "Year before last, the split tax billing windfall (billing property taxes twice a year instead of once as we had traditionally done); now "Revenue-Sharing," (Federal Revenue Sharing Funds which the city began receiving in January, 1972), but while looking down the road into the future, it would be less than wise to anticipate another windfall over the next rise." In my opinion, the City of Martinsville is now, in Mr. Noland's words, "Down the Road." The city finances are now at the point where Council must come to grips with budget problems that Council began to face almost four years ago. In Fiscal 1972 Council was short of funds so the real estate billing procedure was changed from once a year to twice a year. Director of Finance, Holladay Yeaman, states that the change resulted in a net of $753,674 additional revenues to the General Fund for that year only. The windfall monies enabled Council to pay for capital improvements, including $326,948 for the Thoroughfare Street Program and to end up the year with a balanced budget. In Fiscal 1973 Council only needed to spend $31,898 for the Thoroughfare Street Program, $295,050 less than the previous year, and ended up with a balanced budget.