Minutes 12/09/2014 - Laserfiche WebLink

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December 9, 2014 Background: ;perating On May 27, 2014, City Council approved the FY 2014 -15 School Board Budget of $161,303,358, and adopted the first quarterly budget appropriation of $40,325,841. City Council adopted the second quarterly appropriation on September 23, 2014. ;1,Funding for the third quarter of the School Budget, from January 1, 2015 — March 2015, must now be appropriated. Discussion: • Beginning with the FY 2014 -15 Budget, City Council is making quarterly appropriations of the Portsmouth Public School budget. • These appropriations will be made in conjunction with quarterly financial reports from the School Board to City Council. ;1,The third quarterly appropriation covers the period of January 1, 2015 — March 2015. Financial Impact: • Funds are appropriated in the City's FY 2014 -15 General Fund to pay for the local contribution to the School System. The attached ordinance implements the third quarterly amount of the FY 2014 -15 School Operating Budget. Recommended Action: • Adoption of the ordinance. Vision Principle. Efficient, Responsive Government. Next Steps Following Council Action: • Finance and the Schools will complete the necessary budget adjustments. Motion by Ms. Psimas, and seconded by Mr. Meeks, to adopt the following ordinance, and was adopted by the following vote: "ORDINANCE APPROVING THE THIRD QUARTERLY PAYMENT FOR THE FISCAL YEAR 2014 -15 OPERATING BUDGET FOR THE PORTSMOUTH PUBLIC SCHOOL SYSTEM IN THE AMOUNT OF $40,325,841 AND APPROPRIATING THE NECESSARY FUNDS BY CLASSIFICATIONS TO IMPLEMENT SAID BUDGET." Ayes: Cherry, Meeks, Moody, Psimas, Randall, Wright Nays: None 14 - 469 - Adoption of an ordinance appropriating the sum of $583,262 in the FY 2014 -15 General Fund Operating Budget for Reductions in State Aid. Vision Principle: Efficient, Responsive Government. Background: �hapter On November 10, 2014, the General Assembly passed HB 5010 which amends 2, 2014 Acts of Assembly, Special Session I, to include this item. Item 471.30 requires that state aid to local governments be reduced by $30.0 million statewide in FY 2015. • Portsmouth's share of this reduction for FY 2014 -15 is $583,262. • The City must amend its FY 2014 -15 General Fund Budget to appropriate the payment of this amount back to the State. Discussion: • The State has an $882 million budget shortfall as a result of revenues coming in short of budget projections. Of this amount, $346 million must be recovered in FY 2014 -15. • In October, the Governor announced that one of his budget cutting measures would be to reinstitute reductions in State aid to localities, in the amount of $30 million. • On Dec. 17, McAuliffe will unveil a new budget projection and plan for how to save $536 million in FY 2015- 2016. �nowPortsmouth's share of this reduction for FY 2014 -15 is $583,262. We do not yet what the reduction will be for FY 2015 -16. • Localities have the option of either having the State withhold their portion of the reduction from State aid payments between January 1 and June 30, or paying the State directly.