
DATE: Wednesday, March 19, 1997             TAG: 9703190767

SECTION: LOCAL                   PAGE: B5   EDITION: FINAL 
SOURCE: BY BATTINTO BATTS JR., STAFF WRITER 

DATELINE: PORTSMOUTH                        LENGTH:   61 lines

PORTSMOUTH BUDGET CALLS FOR INCREASING CITY FEES

The average resident may be asked to pay $2.12 more per month over the next year to help Portsmouth become stronger financially; increase pay and retirement benefits for city staff; improve neighborhoods, infrastructure and schools; and enhance economic development.

The money will be needed to offset an $18.3 million spending increase City Manager Ronald W. Massie proposes in the $276.7 million operating budget submitted to the City Council on Tuesday.

Massie said the proposed 1997-98 budget focuses on the initiatives the council established during its retreat last month: economic development, neighborhood quality and fiscal strength.

``The recommendations within this budget build on the successes of the previous year and the obvious momentum that Portsmouth is enjoying,'' Massie said.

Some of the budget's highlights:

A 3 percent raise for city staff and school employees, as well as a 2 percent increase in salary ranges.

A 3 percent increase in benefits for retired police officers and firefighters and members of the city's retirement system.

Improvements to the water and emergency 911 systems.

More equipment and staff to allow better and more frequent bulk trash removal.

Increased funding for the city's department of economic development.

Residents would be asked to pay more to have their garbage removed, drink city water, have their sewage treated, use the emergency 911 service, eat at a restaurant or stay at a hotel, or obtain a city sticker for motor vehicles.

City officials say the rate hikes will cost the average citizen about $2.12 a month. But those fees alone won't offset the increased spending. The rest of the money will come from Portsmouth's recent and projected fiscal growth brought in from increased real estate tax revenues and business investment.

Seeking to continue that growth trend, Massie did not propose an increase in property taxes. Although such measures would bring additional revenues, it could prevent people from moving to Portsmouth, which already has one of the region's highest tax rates, he said.

As a result of the freeze on taxes, some city services, such as schools, did not receive nearly as much money as requested in the proposed budget, Massie said.

Funding the School Board's entire request would have required an 11 cent increase in the real estate tax rate, he said. ILLUSTRATION: Graphic

THE PROPOSED BUDGET

Proposed rate increases in Portsmouth's 1997-98 fiscal budget:

Increase refuse fee to $15 from $14 per month.

Increase water rate to $2.15 from $2.05 per 1,000 gallons.

Increase sewer discharge rate to $1.203 from $1.136 per 1,000

gallons.

Increase the Emergency 911 fee to $1.75 from $1.50 per month.

Increase the Restaurant Food and Lodging tax to 5.5 percent from

5 percent.

Increase Automobile License tax to $24 from $18 for motorcycles;

to $25 from $23 for vehicles up to 4,000 pounds, and to $30 from $28