Minutes 11/23/2010 - Laserfiche WebLink

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November 23. 2010 Financial impact: . Use of the excess undesignated and unreserved fund balance for one-time bonus payments as outlined should not jeopardize the City's credit rating, nor will it increase the City's unfunded pension liabilities. Recommended Action: . In accordance with Council's consensus, the Administration recommends adoption of this appropriation ordinance. Vision Principle: Pride of Past, Promise of Future. 1. Mark Geduldig-Yatrofsky, 2713 Sterling Point Drive, spoke in opposition to this item. Motion by Mr. Moody, and seconded by Mr. Cherry, to adopt the proposed ordinance excluding Appointees and Constitutional Officers, and was adopted by the following vote: "ORDINANCE TO TRANSFER $1,808,439 FROM THE FY 2009-10 GENERAL FUND UNDESIGNATED AND UNRESERVED FUND BALANCE TO VARIOUS FY 2010-11 OPERATING BUDGET FUNDS FOR THE PURPOSE OF MAKING A ONE-TIME 3% BONUS PAYMENT TO GENERAL WAGE CITY EMPLOYEES, EXCEPT COUNCIL APPOINTEES, AND TO THE EMPLOYEES OF CONSTITUTIONAL OFFICERS, EXCEPT THE INDIVIDUAL CONSTITUTIONAL OFFICERS, AND A ONE-TIME 1.5% BONUS PAYMENT TO RETIREES OF THE PORTSMOUTH SUPPLEMENTAL RETIREMENT SYSTEM AND THE FIRE AND POLICE RETIREMENT SYSTEM." Ayes: Cherry, Moody, Randall, Whitehurst, Wright Nays: Edmonds, Heretick 10 - 538 - Adoption of an ordinance to transfer $2,000,000 from the FY 2010-11 General Fund undesignated and unreserved fund balance to the FY 2010-11 Capital Improvement Fund. Background: . City Council adopted a resolution on May 11, 2010 declaring its intent to use a portion of remaining FY10 year-end funds in excess of the undesignated and unreserved General Fund balance above the 15% policy minimum, if any would be available. The excess would be first designated for a one-time bonus for certain employees and retirees, and secondly to replace $2 million bond funding for cash funding of the Capital Improvement Plan (CIP) for FY11. Discussion: . The City's audited FY10 Comprehensive Annual Financial Report reflects sufficient excess above the policy limit to grant the bonuses and to replace $2 million of bond funding with equity funding. . This is a companion City Manager's Report (CMR) on the November 23, 2010 agenda that appropriates $1.6M in order to pay certain employees and retirees a one- time bonus. Financial impact: . Use of the excess undesignated and unreserved FY10 fund balance to cash fund the City's CIP decreases total interest costs for financing the City's capital needs and demonstrates City Council's commitment to fiscal prudence. Recommended Action: . In accordance with Council's consensus, the Administration recommends adoption of this appropriation ordinance. Vision Principle: Pride of Past, Promise of Future.