Minutes 05/11/2010 - Laserfiche WebLink

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May 11. 2010 2. Steve Carroll, 3112 Riveredge Drive, spoke in opposition to this item. Motion by Mr. Whitehurst, and seconded by Ms. Psimas, to adopt the following resolution, and was adopted by the following vote: "RESOLUTION ESTABLISHING AN ECONOMIC DEVELOPMENT INCENTIVE FUND IN THE FY 2010-2011 OPERATING BUDGET INTO WHICH FUNDS MAY BE APPROPRIATED FOR USE TO ATTRACT COMPANIES THAT WILL HAVE A SIGNIFICANT POSITIVE IMPACT ON THE TAX BASE, THE EMPLOYMENT RATE, AND THE QUALITY OF LIFE IN THE CITY OF PORTSMOUTH. WHEREAS, at a retreat on November 7, 2009, the City Council recognized economic development as its newest initiative for the next three years; and WHEREAS, it has been determined that under certain conditions the use of financial incentives to induce economic development is necessary for the City to be competitive and to attract companies that will have a significant positive impact on the tax base, the employment rate, and the quality of life in the City of Portsmouth; and WHEREAS, the Chief Financial Officer and the Director of Economic Development have recommended the establishment of an Economic Development Incentive Fund into which funds may be appropriated and from which funds may be expended for economic development incentives. NOW THEREFORE BE IT RESOLVED by the Council of the City of Portsmouth, Virginia that it hereby establishes an Economic Development Incentive Fund to be used in FY 2010-2011 and subsequent fiscal years as a fund into which funds may be appropriated by City Council and from which funds may be expended for incentives for economic development." Ayes: Heretick, Moody, Psi mas, Randall, Smith, Whitehurst, Holley Nays: None 10 - 230 - Adoption of a resolution declaring the intent of City Council that any remaining FY 2009-2010 year-end funds in excess of the Unreserved, Undesignated General Fund Balance of 15% of general fund revenues be allocated first to a one- time bonus to designated non-sworn employees and to retirees with any remaining balance up to $2 million to the City's FY 2010-2011 courthouse complex debt obligations. Vision Principle: Robust and Prospering Economy. Background: . Included in the FY11 Budget Balancing strategy is the substitution of $2 million in bond funding for cash funding (previously designated as transfer from General Fund to CIP) for the FY11 CIP Courthouse Complex project. This strategy was vetted with the City's financial advisors and is in compliance with the City's Debt Capacity and Affordability Policies. Therefore, if FY10 ends with a positive balance above the City's 15% Fund Balance Policy minimum, the intent of this resolution is to replace the bond funding with cash funding. . Also, based on FY11 budget work session discussions, it has been proposed by various members of City Council that any excess funds above the $2 million be allocated for a one-time bonus for full-time City positions and retirees (excluding all state funded, city positions funded in Constitutional Offices or quasi-state eligible employees and public safety sworn positions) up to three percent (3%) of base pay. The premise of the one-time bonus is that general wage employees and retirees have not received a pay increase since July, 2009 and the 3% general wage increase awarded in July, 2008 was effectively erased by the seven furlough days imposed for general employees during Fiscal Year 2009. . The Constitutional Officers' employees have been excluded based on Compensation Board approved biennial budget (FY11-FY12) wherein a one-time bonus payment of three percent of base pay for state employees will be given on December 16, 2010 contingent upon the results of the state's FY10 revenue collections.