2016 ORDINANCES - Laserfiche WebLink

Home Browse Search

AN ORDINANCE AUTHORIZING CERTAIN BUDGETARY. TRANSFERS REQUIRED BY THE SETTLEMENT OF CLAIMS BY AND AGAINST SOUTH NORFOLK JORDAN BRIDGE, LLC, TO INCLUDE THE TRANSFER OF $784,848 FROM THE MIDTOWN CORRIDOR/TURNPIKE ROAD PROJECT IN THE FY 2017 CAPITAL IMPROVEMENT PROGRAM BUDGET TO THE FY 2017 GENERAL FUND OPERATING BUDGET AND THE TRANSFER OF $784,848 FROM THE FY 2017 GENERAL FUND OPERATING BUDGET TO THE REPAIR OF SEAWALL PROJECT IN THE FY 2017 CAPITAL IMPROVEMENT PROGRAM BUDGET. WHEREAS, by Resolution R-16-28 adopted on September 27, 2016, City Council authorized the settlement of claims by and against South Norfolk Jordan Bridge; LLC ("SNJB") related to taxation of the South Norfolk Jordan Bridge; and WHEREAS, one of the terms of the settlement was that the Commonwealth of Virginia would provide $1,000,000 in supplemental transportation funding to the City of Portsmouth (the "State Contribution"); and WHEREAS, the State Contribution replaces previously budgeted City of Portsmouth funds on a dollar for dollar basis and frees those City funds for another use (the "Freed Funds"); and WHEREAS, the Commonwealth of Virginia has agreed to make the State Contribution by providing $784,848 in funding for the Midtown Corridor/Turnpike Road Capital Improvement Project and $215,152 in funding for the Paradise Creek Bridge Replacement Capital Improvement Project; and WHEREAS, City Council desires to transfer the Freed Funds to the Repair of Seawall Capital Improvement Project, which will expedite the schedule for Seawall repairs; and WHEREAS, the fundamental purpose of this Ordinance is to effectuate part of that transfer; and WHEREAS, the City's basis for asserting liability in the litigation with SNJB was the claim that SNJB owed delinquent taxes, and the State Contribution was calculated with reference to a portion of the delinquent taxes asserted by the City; and WHEREAS, for this reason, rather than transferring the Freed Funds within the Capital Improvement Program Budget, it is necessary from an accounting standpoint to first transfer the Freed Funds from the Capital Improvement Program Budget to the General Fund Operating Budget so that they can be applied to a portion of the asserted delinquent tax liability, and then to transfer the Freed Funds back to the Capital Improvement Program Budget to fund the Repair of Seawall Capital Improvement Project; and