Minutes 04/27/2010 - Laserfiche WebLink

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April 27. 2010 Background: . City Council directed the Administration to determine the feasibility of providing financial assistance to recipients of City-owned retirement plan benefits that fell below poverty level. . The Portsmouth Court Complex Sale and Development Agreement executed in September 2009 required payment of monthly Availability Charges until the date of the Initial Payment was made to the Courts Complex Developer. . The full annual Availability Charge was budgeted in FY10 but the Initial Payment was made in mid-year, leaving sufficient funding to pay each of the 81 retirement recipients a lump-sum (subject to taxation) amount of $1,083, or 10% of the poverty level threshold. Discussion: . By consensus on April 13, 2010, City Council authorized the Administration to proceed with making payment to the 81 pension recipients. . Since the payments will be made from the Retirement Fund, Council is required to officially authorize the transfer from the General Fund to the Retirement Fund. . Payment through the Retirement Fund to the 81 recipients is the most appropriate method to pay these individuals in order to ensure appropriate income tax reporting. Financial impact: . As a result of this appropriation, the general fund will decrease by $87,723 and the retirement fund will increase by $87,723. Recommended Action: . In accordance with Council's consensus, the Administration recommends adoption of this appropriation ordinance. Vision Principle: A Robust and Prospering Economy. Next Steps Following Council Action: . The Finance Department will proceed with payment. Motion by Mr. Moody, and seconded by Ms. Randall, to adopt the following ordinance, and was adopted by the following vote: "ORDINANCE TO TRANSFER $87,723 FROM THE FY 2009-2010 GENERAL FUND TO THE FY 2009-2010 RETIREMENT FUND FOR THE PURPOSE OF MAKING A ONE-TIME PAYMENT TO 81 PORTSMOUTH SUPPLEMENTAL RETIREMENT SYSTEM AND PORTSMOUTH FIRE AND POLICE PENSION RECIPIENTS WHOSE ANNUAL BENEFIT FALLS BELOW THE U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES 2009 POVERTY GUIDELINES." Ayes: Heretick, Moody, Psi mas, Randall, Smith, Whitehurst, Holley Nays: None 10 - 204 - Adoption of an ordinance to appropriate $17,222,170 in the FY 2009-2010 Economic Stimulus Fund in monies received from the Virginia Department of Education for the acquisition, construction, and equipping of the new Simonsdale Elementary School. Vision Principle: Lifelong Learning Community. Background: . Former Governor Kaine allocated $18,000,000 from the American Recovery and Reinvestment Act of 2009 (ARRA) Qualified School Construction Bonds (QSCBs) to the City of Portsmouth. . Sale of Series 2009 bonds issued by Virginia Public School Authority closed on November 13, 2009.