MARCH 31, 1978 SPECIAL SESSION
MINUTES OF THE SPECIAL MEETING
OF THE
HONORABLE CITN COUNCIL
OF TH@
CITY OF VIRGINIA BEACH, VIRGIIIIA
Nlarch 31, 1978
The special meeting of the Council of the City of Virginia Beach,
Virginia, was called to order by Mayor Clarence A. Holland, in the
Conference Room, in the Administration Building, Princess Anne
Borough, on Friday, flarch 31, 1978, at 10:30 a.m., for the presen-
tation of the proposed budget for fiscal year 1978/79.
Council Members present: John A. Baum, George R. Ferrell, John R.
Griffin, Mayor Clarence A. Ifolland, J. iienry flecoy, Jr., Council-
woman Meyera E. Oberndorf, J. Curtis Poyne, Roger L. Riggs, Vice
Mayor Patrick L. Standing, and Floyd E. Waterfield, Jr.
Council Members absent: Robert B. Crcmwell, Jr.
ITEM #11@31
The City Clerk read the following noti(e from the City Manager
calling for a special meeting:
As prescribed by Section 2-9 of the Code of the City
of Virginia Beach, I request that Council have a Speci&t
7Meetin,.g at 10:30 a.m. on Fri.day, March 31, 1978, in the
Council Chambers of the Administration Building, Municipal
Center. This meeting is for the presentation of the Fiscal
iyear @l,,9.78.-17.9@Operdting ..Biidgef for the city of Virginia Beach.
Ve
ITEM #11@32
The City Manager stated that to aid thcse citizens on limited or
fixed incomes, and to off-set almost all of the increase in average
assessed values of residential properties for the 1978-79 fiscal
year, he has recommended the tax rate te reduced by five-cents.
It should be noted that a five-cent recuction in the rate is equal
to a 6@/'@ reduction and that the average increase in assessed values
was 7.7%; consequently, this offsets mcre than 80% of the increase
due to inflation. It should be noted that if this recommendation
is adol)ted that this is the second trUE tax rate reduction within
the last three fiscal years.
This reduction means that a majority of tax payers will pay
82-cents per $100 of assessed value, while rural residents who
do not have mosquito control will pay EO-cents per @100 of assessed
value. Virginia Beach will continue tc have the lowest tax rate in
the Commonwealth in cities over 20,000 population.
The City Manager stated the following factors allowing real estate
tax rate reduction:
1. Tourism - This industry realized a 28,@@ increse in business
during the last summer season. Sucha successful
year has had a diiect financial impact on the
city and has added to our economic condition. it
is estimated that tourism brought in $12-million
to the coffers of Vir--inia Beach last year.
3/31/78
3/31/78
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2. @leiv Construction The Real Estate Assessor reports tliat
an increase of 5% in new construction
has been a tremendous plus factor e-
conomically this year.
3. Financial Control During this fiscal year we have been
able to realize unanticipated increases
in revenqe. The rnanal-e.,-nent team, with
the cooperation of departr@ient heads and
their staffs, have held expenses to the
absolute minimum.
In order to prepare this budget the City Manager has made the following
assutiiptions:
1. Reduction in the real estate tax rate by 5-cents.
2. Continuation of the existing tax rate in all other
categories except real estate.
3. No significant decliile in the present economy.
4. The City will continue to receive School Impact funds.
5. The City will con-linue to receive CETA funds to fight
unemployment.
6. There will be no substantial clianl-e in the amount of
revenues collected.
7. Use of $8.3--million in unappropriated funds to balailee
the FY 78-79 budget.
The following is the budget in brief.
Revenue Summary
From the Commonwealth 45,139,722 29.56%
General Property Taxes 39,965,059 26.18
Other Local Sources (Fines,
Licenses, Sale of Property, etc.) 28,663,338 18.77
Other Local Taxes 23,942,000 15.68
From Unapnropriated Funds (77-78) 8,@@48,094 5.47
From Federal Government 6,627,668 4.34
$152,685,881 100.00%
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Appropriation Summary
School Operations $ 66,219,845 43.37@,
General Operations 61,934,012 40.56,@b
Utility Operations 9,251,891 6.06
Utility Debt Costs 5,310,055 3.48
General Debt Costs 5,176,276 3.39
School Debt Costs 4,793,802 3.14
$152,685,881 100.00%
The City Mana.-er further stated that with Council's approval, the City
employees will receive a 10' increase on their gross salary. One being
in October of 1978 and the other being in April of 1979.
ITE?,l 1-11933
On motion by Councilman Ferrell, seconded by Councilman lvaterfield,
and by acclamation, the meeting adjourned.
e rl@
City of Virginia Beach,
Virginia
Special Meeting
March 31, 1978
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