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March 29, 2016 <br /> <br /> <br /> Funding reserved for Governor McAuliffe’s proposed 2% raises for Constitutional <br />Offices and staff effective December 2016 <br /> <br /> Fund Balance allocation: $4 million for one-time capital projects and $2 million <br />for one-time bonuses for city employees <br /> <br /> Fund Balance is maintained at 15% or above General Fund revenues <br /> <br /> Maintains our AA bond credit rating <br /> <br /> CIP addresses top ten (10) capital infrastructure needs for Portsmouth Public <br />Schools - $4.6 million <br /> <br /> Realigned Neighborhood Advancement services within Permits & Inspections <br />and Planning in accordance with State/City Code compliance <br /> <br /> Realigned Landscape and Cemetery maintenance within the Department of <br />Parks, Recreation and Leisure Services <br /> <br /> Total Proposed FY 2017 CIP Budget - $36.56 million <br /> City-wide major project highlights: <br />o <br /> $11 million to complete the replacement of the Churchland Bridge <br /> <br /> $3.7 million for the replacement of ambulances, critical equipment and <br /> <br />vehicle inventory <br /> $5 million for Seawall reinforcement <br /> <br /> <br />Financial Policies <br /> <br />The city’s sound, conservative financial policies and guidelines ensures the long-term <br />financial stability of the city. Adherence to these policies assures a competitive bond <br />rating and the ability to borrow funds for long-term capital needs at an effective interest <br />rate. The city’s Capital Improvement Program supports projects that improve the <br />economic development and infrastructure needs of the city and our schools. Projects <br />with a long useful life are typically debt financed, allocating the cost over the useful life <br />of the project. <br />Capital Improvement Program (CIP) <br /> <br />In developing the CIP, the city reviewed with our financial advisors current and future <br />debt services costs, alternative funding streams, and the ability to cash finance projects. <br /> A five (5) and ten (10) year focus on the impact of debt funding projects was completed <br />and strategic recommendations were made on the use of financing techniques and one- <br />time use of fund balance to cash finance projects. <br />Low-interest financing opportunities to include Clean Water Revolving Loan Fund for <br />sewer projects, Drinking Water Revolving Loan fund for water projects, and Qualified <br />Zone Academy Bonds (QZABs) and literary loans for school projects are being actively <br />sought. The current CIP has over 50% of non-debt financing sources. <br />Ongoing infrastructure projects, including bridge replacements and seawall <br />reinforcement, were prioritized and alternative funding sources were aggressively <br />pursued. Municipal and school buildings are essential in servicing both citizens and <br />students. Projects to ensure the structural integrity and maintenance of these buildings <br />have been added to the five-year CIP plan. <br />Short-term borrowing to take advantage of low interest rates will help maximize the <br />number of vehicles replaced which will improve service delivery, reduce operational <br />repair costs, and enhance safety. Highlights of the five-year plan include funding key <br />city and school infrastructure needs are identified below: <br />• <br />Churchland and Paradise Creek Bridges <br />• <br />Seawall Reinforcement <br />• <br />School buses and city vehicle replacement <br /> <br /> <br /> <br />