Minutes 12/13/2016 - Laserfiche WebLink

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December 13, 2016 “ORDINANCE TO AMEND THE FY 2017 CAPITAL IMPROVEMENT PROGRAM BUDGET BY AUTHORIZING THE TRANSFER OF $500,000 FROM THE 801 WATER STREET PROJECT TO THE “RENOVATIONS TO VARIOUS BUILDINGS” CATEGORY TO FUND THE RELOCATION OF THE MAGISTRATE AND POLICE ROLL CALL OFFICES, THE TRANSFER OF $109,000 FROM THE 801 WATER STREET PROJECT TO THE IT COMPUTER ROOM PROJECT, AND THE TRANSFER OF $50,214 FROM THE PORTSMOUTH COMMUNITY COLORED LIBRARY MUSEUM (PCCLM) ADA RAMP PROJECT TO FUND OTHER PCCLM BUILDING AND SITE IMPROVEMENTS.” Ayes: Cherry, Edmonds, Moody, Psimas, Whitaker, Wright Nays: None 16 - 377 - Adoption of an ordinance authorizing certain changes to the City Budgets to reflect the settlement of claims by and against South Norfolk Jordan Bridge, LLC. Vision Principles: A Robust and Prosperous Economy and Efficient Service Delivery. Background:  In 2015, the city of Portsmouth and the SNJB filed a suit and countersuit regarding real estate taxation and after extensive negotiations reached an agreement on a settlement with the following terms:  SNJB will pay the city a fee equal to 3.5 cents per vehicle crossing the bridge (which will increase to 5 cents in 2027).  SNJB will pay the city $105,000 payable by January 31, 2017.  SNJB will pay the city $30,000 annually from January 2017-July 2027.  SNJB will pay the city not less than $223,000 and as much as $1,000,000 depending on delinquent recoveries between the date of settlement and July 1, 2019.  The Commonwealth of Virginia will provide the city an additional $1 million in transportation funding.  The city will not assert the right to tax the bridge unless the payments above are not made or state law is clarified to confirm that the SNJB is taxable.  The Commonwealth of Virginia’s funding will be recognized through decreasing the city‘s portion of revenue sharing for certain transportation projects. For FY 2017, the city’s revenue sharing contribution for the Midtown Corridor/Turnpike Road project will be reduced in the amount of $784,848. In FY 2018, the city’s revenue sharing contribution for the Paradise Creek Bridge Replacement project will be reduced in the amount of $215,152. Discussion:  In FY 2017, the city’s General Fund operating budget will be increased by $784,848 in both the revenue account “Delinquent Property Taxes” and the expenditure account “Transfer to Capital Project Fund”. The city’s CIP expenditure budget account entitled “Transfer to General Fund” will increase by $784,848 and the revenue account “Transfer from the General Fund will increase by $784,848. The Midtown Corridor/Turnpike Road project will decrease by $784,848 and another CIP project will be appropriated for the increased revenue received from the General Fund.  The city is recommending that the funding for the Repair of Seawall project be increased. The waterfront seawall and bulkhead is a major asset in the protection of the city’s waterfront. It provides for safety of citizens and property and provides leisure and sightseeing opportunities. Its repair and maintenance is critical to the city. Currently the major repair work on area 3 is fully funded and the project is underway. Area 4, the section near city hall, is partially funded with over $2 million more needed to fully repair. Reallocating the $1 million CIP appropriation from the two transportation projects ($784,848 in FY 2017 and $215,152 in FY 2018) will provide almost half the amount needed to complete area 4.  Due to the size and uncertainty of the actual amount of other SNBJ settlement revenue to be received in FY 2017, the current year's operating budget will not be increased for the other settlement provisions but these operating revenue sources will be added to the FY 2018 budget.