Laserfiche WebLink
June 12, 2001 <br /> <br />Purpose and Need: <br /> <br />· On August 31,2000, the School Board of the City of Portsmouth adopted a <br />resolution requesting the City Council to appropriate $486,965 to fund various school <br />capital improvements. <br /> <br />· In a memo to the City Manager dated April 17, 2001 the Superintendent of Schools <br />has again requested that this appropriation be considered by City Council. <br /> <br />· These funds represent unspent appropriation from Fiscal Year 1999, which was not <br />reported by the School Board until Fiscal Year 2001. The funds were returned to the <br />City as of the end of Fiscal Year 2000, and served to increase the City's fund balance <br />for the current fiscal year (FY 2001). The only source for funding this re-appropriation is <br />the City's undesignated fund balance. <br /> <br />· It is my understanding that a majority of Council believe a prior commitment has <br />been made to make these sums available for school capital expenditures and based on <br />your recent joint work session that these funds are to be used to air condition schools. <br />Standing alone, a re-appropriation of these funds would further deplete an already <br />anemic fund balance; however, due to the hiring freeze and the spending limitations I <br />have imposed, I believe these funds can be provided without being fiscally <br />irresponsible. <br /> <br />· In addition to the request of the School Board and knowing Council's desire to assist <br />with the funding of air conditioning, I have been informed by staff that additional funds <br />are available. Interest earnings of approximately $337,000 have accrued on the <br />proceeds from Qualified Zone Academy Bonds (QZABs), School Construction and <br />Lottery Funds that have been invested by the City. The interest earned is available for <br />use and has not been included in the School's submitted plans as a funding source for <br />any capital projects. I am including those funds as part of the total appropriation. <br /> <br />· To carry out the intent of Council, the ordinance specifically limits the use of funds to <br />expenditures necessary to provide air conditioning to the schools in accordance with the <br />plan submitted to Council. <br /> <br />Financial Impact: <br /> <br />· By using the interest accrued on the funds identified above, a total of $823,965 can <br />be provided for the air conditioning of schools without unduly impacting the City's <br />General Fund. The funds would be provided first from interest earnings and second <br />from fund balance. <br /> <br />1. Byron P. Kloeppel, 501 Elizabeth Place, spoke in support of the proposed Capital <br />Improvement Fund ordinance. <br /> <br /> Motion by Mr. Moody, and seconded by Mr. Pitts, to adopt the following <br />ordinance, and was adopted by the following vote: <br /> <br />"AN ORDINANCE TO APPROPRIATE $823,965 IN THE CAPITAL IMPROVEMENTS <br />FUND TO FUND VARIOUS SCHOOL CAPITAL IMPROVEMENTS." <br /> <br />Ayes: Benn, Griffin, Moody, Pitts, Robinett, Whitehurst, Holley <br />Nays: None <br /> <br />01 - 185 - Adoption of a resolution establishing City Council's policy regarding the return <br />of unspent school operating appropriations to the Portsmouth Public Schools. <br /> <br />Recommendation: <br /> <br />· Approval of a resolution establishing City Council's policy regarding the return of <br />unspent school operating appropriations to the Portsmouth Public Schools. <br /> <br />Purpose and Need: <br /> <br />· State law provides that unspent appropriations allocated to the School Board expire <br />at the conclusion of each fiscal year. <br /> <br /> <br />