|
March 26, 2013
<br />Motion by Mr. Moody, and seconded by Ms. Psimas, to adopt the following
<br />resolution, and was adopted by the following vote:
<br />"RESOLUTION REQUESTING A REDUCTION OF $313,032.16 IN THE CITY OF
<br />PORTSMOUTH'S FY 2013-14 (FFY 13) U.S. DEPARTMENT OF HOUSING AND
<br />URBAN DEVELOPMENT HOME INVESTMENT PARTNERSHIPS GRANT.
<br />WHEREAS, the City of Portsmouth receives an annual HOME Investment
<br />Partnerships Program entitlement from the US Department of Housing and Urban
<br />Development (HUD) under the Cranston -Gonzalez National Affordable Housing Act of
<br />1992, as amended, ("Act"), to provide assistance with housing to low-income
<br />households; and
<br />WHEREAS, the City of Portsmouth provided $313,032.16 of HOME funds to the
<br />Center for Community Development, Inc. (CCDI), a certified Community Housing
<br />Development Organization (CHDO), which were to used by CCDI to assist with
<br />acquisition and partial rehabilitation of 2231 Elm Ave., 1029 Ann St., and 2309 Peach
<br />St.; and
<br />WHEREAS, CCDI did not complete the rehabilitation of three projects or sell
<br />them to low-income households in agreement with the HOME regulations, and the
<br />properties have now gone into foreclosure; and
<br />WHEREAS, the City investigated all possibilities to salvage the three projects to
<br />avoid foreclosure and auction by the lender but found that it made no financial or
<br />economic sense; and
<br />WHEREAS, HUD has terminated the projects due to lack of compliance with the
<br />HOME regulations and is requesting repayment of the $313,032.16; and
<br />WHEREAS, the City has determined that due to financial hardship it does not
<br />have the resources to repay HUD the requested $313,032.16 from its general revenue
<br />without sacrificing other critical programs; and
<br />NOW THEREFORE, BE IT RESOLVED by the Council of the City of Portsmouth,
<br />Virginia, that the City request HUD to reduce its FFY 13 HOME grant by $313,032.16 to
<br />repay the funds expended on the terminated projects and, if the FFY 13 entitlement
<br />funds are not sufficient to cover the expense of the three terminated projects, the City
<br />requests that HUD reduce future years HOME entitlement funds."
<br />Ayes: Cherry, Edmonds, Meeks, Moody, Psimas, Randall, Wright
<br />Nays: None
<br />13 - 142 -Adoption of a motion to schedule a public hearing on Tuesday, April
<br />23, 2013 regarding a proposal to issue up to $175,000,000 in pension obligation
<br />bonds to finance contributions to the City's underfunded Supplemental
<br />Retirement System and the Fire and Police Retirement System. Vision
<br />Principle: Efficient, Responsive Government.
<br />Background:
<br />• At the January 8, 2013 Council Work Session, City staff briefed Council on the
<br />financial status of the City's two closed pension plans. All pension plans have two basic
<br />components: assets, which is essentially available cash in the plan, and liabilities,
<br />which consist of the retirement benefits that we pay. These two components must be
<br />in equilibrium for current and future benefit payments. For every $1 in liability, we
<br />should have $1 of assets. Instead, the City's two closed pension plans have 28 cents
<br />and 32 cents of assets per dollar of liability, respectively. The City has consistently
<br />funded the Annual Required Contribution (ARC), but that amount has not been sufficient
<br />to increase the funding levels of the plans.
<br />
|