Minutes 05/11/2010 - Laserfiche WebLink

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May 11. 2010 WHEREAS, from year to year unappropriated funds may remain at year's end that exceed the City Council's established goal of a 15% unreserved and undesignated General Fund balance ("reserve funds"); and WHEREAS, reserve funds are intended to be used to cushion major unanticipated financial occurrences, and the City's financial consultants have deemed said amount to be prudent; and WHEREAS, if funds become available in excess of the 15% reserve funds, they present an opportunity for one-time non-recurring expenditures; and WHEREAS, for financial accounting purposes, the Chief Financial Officer recommends that the Council establish a Budget Stabilization Fund into which such excess may be appropriated and from which they may be expended. NOW THEREFORE BE IT RESOLVED by the Council of the City of Portsmouth, Virginia that it hereby establishes a Budget Stabilization Fund into which funds in excess of the established 15% unreserved and undesignated General Fund balance may, by super-majority vote of members elected to Council, be appropriated during the current FY 2009-2010 and subsequent fiscal years and from which they may be expended for one-time non-recurring purposes." Ayes: Heretick, Moody, Psi mas, Randall, Smith, Whitehurst, Holley Nays: None 10 - 229 - Adoption of a 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. Vision Principles: Bold New Directions and Robust and Prospering Economy. Background: . On November 7, 2009 City Council held a Retreat to discuss economic development. At that meeting Council determined economic development to be the next priority focus area for the next three years. . Under certain conditions the use of financial incentives to induce economic development is necessary for the City to be competitive. Discussion: . Adoption of this resolution establishes the Economic Development Incentive Fund (EDIF). . Sale of Property has been identified as one potential source of revenue. The potential revenue would result from excess proceeds that become available at the conclusion of the two year waiting period for real estate auctioned to satisfy tax delinquencies. Financial Impact: . None. Subsequent Council appropriations will be required before any funding becomes available in the EDIF. Staff Recommends: . Council's adoption of this resolution. Vision Principle: Bold New Directions and Robust and Prospering Economy. Next Steps Following Council Action: . FinancelAccounting will create the new Economic Development Incentive Fund in the City's financial records. 1. Mark Geduldig-Yatrofsky, 2713 Sterling Point Drive, voiced his concern with what he believes will be a lack of funding for items 10-229 and 10-230.