Minutes 02/24/2009 - Laserfiche WebLink

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February 24. 2009 WHEREAS, NSP is intended to benefit households at or below 120% of area median income, and at least 25% of all NSP funds must benefit households at or below 50% of area median income; and WHEREAS, based on foreclosure data, NSP funds will be targeted to the Westhaven Park, Prentis Park, and Cradock neighborhoods, the maximum number permitted under the Program; and WHEREAS, no local matching funds are required to obtain the funds. NOW THEREFORE BE IT RESOLVED by the Council of the City of Portsmouth that the City wishes to apply for $2,000,000 in Virginia Community Development Block Grant Neighborhood Stabilization Program funds for the City of Portsmouth Neighborhood Stabilization Program. BE IT FURTHER RESOLVED that City Manager Kenneth L. Chandler is hereby authorized to sign and submit appropriate documents for the submittal of this proposal." Ayes: Heretick, Psi mas, Randall, Smith, Whitehurst, Holley Nays: None 09 - 119 - Adoption of a resolution expressing the City's willingness to work with the Virginia Resources Authority concerning the refinancing of the debt of the Southeastern Public Service Authority. Vision Principle: Bold New Directions. Background: . SPSA is the regional municipal solid waste authority. Its members are Portsmouth, Virginia Beach, Norfolk, Chesapeake, Suffolk, Isle of Wight, Franklin, and Southampton. SPSA has been struggling financially in recent years, for a number of reasons. There is a shortfall in this year's SPSA budget, and SPSA may have to increase tipping fees to cover the shortfall, if other means for dealing with it cannot be found. The increase in tipping fees will result in highly undesirable consequences for Portsmouth's FY 2008-09 Operating Budget. . VRA, a state agency, is willing to provide certain refinancing for SPSA that will cause a significant reduction in the SPSA budget shortfall, but only if it receives certain commitments from all SPSA members. . This resolution would authorize the required commitment to VRA from Portsmouth. Discussion: . The resolution authorizes a letter from the Mayor to VRA. . By the letter, Portsmouth indicates its willingness to provide financial backing to a portion of the new debt VRA will incur in connection with assisting SPSA. . Portsmouth would be backing only its pro rata portion of the new debt. The other SPSA members would each back their own share. Financial Impact: . The VRA refinancing will save Portsmouth up to $3,100,000 in increased tipping fees for this year alone that would otherwise have to be imposed. Recommended Action: . Adoption of the resolution is recommended. Vision Principle: Bold New Directions. Next Steps Following Council Action: . Mayor to send letter to VRA. . Copies of letter to be sent to SPSA and SPSA members. . Management Team to continue working with VRA and SPSA as needed.