Minutes 12/13/2005 - Laserfiche WebLink

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December 13, 2005 Discussion: ? The debt service savings realized by the General Fund Operating Budget on the refunded bonds in FY 06 is $1,136,920, which results in a $201,879 shortage of funding. ? The bond sale refunded three Variable Rate Demand Bond issuances, which avoids ongoing financing costs and yields $169,000 in savings from reduced letter of credit fees, remarketing fees, and bond issuance costs funded within the FY 06 General Fund Operating Budget by general tax revenue. ? Lastly, a minimum of $32,880 in interest savings is expected from the reduced reliance on Revenue Anticipation Notes (RAN’s) during FY 06. ? Financial Impact : The proposed ordinance will reprogram debt service funds totaling $1,078,799 in the FY 06 General Fund Operating Budget, which will result in no additional cost to the City. Staff Recommends: Adoption of an ordinance to reprogram funds totaling $1,078,799 within the 2005-2006 General Fund Operating Budget for debt service on the City’s 2005 General Obligation and Refunding Bonds. Vision Principle: Robust and Prospering Economy. Next Steps Following Council Action: ? The CFO will ensure that a budget transfer action is processed to implement the reprogramming of funds totaling $1,078,799 in the FY 06 General Fund Operating Budget in accordance with this ordinance. This ordinance will become effective immediately. Motion by Mr. Whitehurst, and seconded by Mr. Moody, to adopt the following ordinance, and was adopted by the following vote: “ORDINANCE TO REPROGRAM $1,078,799 WITHIN THE 2005-2006 GENERAL FUND OPERATING BUDGET FOR DEBT SERVICE ON THE CITY’S 2005 GENERAL OBLIGATION AND REFUNDING BONDS.” Ayes: Heretick, Moody, Psimas, Randall, Smith, Whitehurst, Holley Nays: None 05 - 577 - Adoption of an ordinance to amend Chapter 35 of the City Code, by adopting a new Section 35-7.1 that establishes procedures for personal property tax relief for qualifying motor vehicles in accordance with the state Personal Property Tax Relief Act of 1998, as amended. Vision Principle: A Robust and Prospering Economy. Background: ? The 2005 General Assembly capped the Commonwealth’s FY 2006 total contribution for automobile personal property tax relief at $950 million. In addition, it established a procedure that each locality must adopt in order to be eligible for its share of the $950 million. Discussion: ? The proposed ordinance establishes procedures for setting the personal property tax relief percentage for the first $20,000 of value of vehicles qualifying for tax reduction. ? The actual tax relief percentage for qualifying vehicles will be set by Council during the budget process. The tax relief percentage will be based upon the percentage of taxes actually collected by the City for the Calendar Year 2004, as of December 31, 2005, which will then be utilized by the Commonwealth to determine the City’s share of the $950 million. ? The ordinance also provides for unreduced taxation plus penalties and interest on qualifying vehicles for which taxes have not been paid by the citizens for Calendar Year 2005 and older, by September 1, 2006. ? Financial Impact: The impact from adopting this ordinance will be revenue neutral since the percentage of tax relief calculation will be applied to the individual qualifying vehicles beginning in 2006. The percentage will change each year based on assessments, with the citizens absorbing a greater percentage as assessments increase. Implementation of its provisions will assure the City of its share in the distribution of the $950 million by the State.