Minutes 09/12/2017 - Laserfiche WebLink

Home Browse Search

September 12, 2017 Motion by Mr. Moody, and seconded by Ms. Psimas, to adopt the following ordinance, and was adopted by the following vote: “ORDINANCE TO RE-APPROPRIATE UNEXPENDED FUNDS FROM THE FY 2017 PORTSMOUTH PUBLIC SCHOOLS TEXTBOOK FUND BUDGET IN THE TOTAL AMOUNT OF $2,565,162 INTO THE OVERALL AND FIRST QUARTER FY 2018 TEXTBOOK FUND BUDGET FOR THE PORTSMOUTH PUBLIC SCHOOLS.” Ayes: Cherry, Clark, Lucas-Burke, Moody, Psimas, Whitaker, Rowe Nays: None 17 - 399 - Adoption of an ordinance to re-appropriate unexpended funds from the FY 2017 Portsmouth Public Schools Risk Management Fund budget in the total amount of $4,695,154 into the FY 2018 overall and First Quarter Risk Management Fund budget for the Portsmouth Public Schools. Background:  PPS has made a preliminary determination that it has an unspent net position amount of $5,583,782 in FY 2017 Risk Management funding. The Portsmouth School Board has requested that the city re-appropriate this amount into the FY 2018 Risk Management Fund budget, ($4,695,154), the FY 2018 PPS General Fund budget ($636,000), and the City’s Capital Improvement Budget for Education ($252,628).  Virginia State Code Section 22.1-100 states that “all sums of money derived from the Commonwealth which are unexpended in any year in any school division shall revert to the fund of the Commonwealth from which derived unless the Board of Education directs otherwise. All sums derived from local funds unexpended in any year shall remain a part of the fund of the governing body appropriating the funds for use the next year, but no local funds shall be subject to redivision outside of the locality in which they were raised.”  Portsmouth City Code Sec.2.2 (b) states: Annually as part of the budget process, the city council shall appropriate for the purpose of education the total amount of all funds estimated to be available for the ensuing fiscal year in the school board risk management and insurance fund. Appropriations, to the extent they shall not have been expended or lawfully encumbered, shall lapse at the end of the period for which they were made.  Portsmouth City Code Sec.2.2 (c) states “The city manager is hereby authorized to enter into an agreement with the superintendent of schools establishing rules and regulations governing the school board risk management and insurance fund and to authorize payment therefrom. The city attorney shall approve the payment of any claim and shall consult with the school board before payment is made of any claim in excess of $100,000.00.  As stated in City Ordinance 2016-30, funds encumbered but unpaid by the end of the fiscal year will be deemed unspent appropriations that will require re-appropriation by the City Council. Discussion:  PPS has identified the preliminary net position amount of $5,583,783 in the schools Risk Management Fund and is requesting the City to re-appropriate the following amounts:  $3,695,154 to remain in the Health Self Insurance program to cover health claims and expenses and to maintain a reserve for large unexpected claims. PPS is self- funded for health care costs and budgets funds based on plan year (Calendar year) expenses not fiscal year expense.  $1,000,000 to remain in the Workers Compensation and General Liability Program as a reserve for large unexpected expenses, deductibles and other unexpected expenses.  $636,000 transfer to the PPS General Fund to cover expenses to move Grade 6 (six) to middle schools as part of the reconfiguration of elementary and middle schools to a traditional model.  $506,000 for the initial cost to lease portable classrooms  $130,000 for the Information technology including wireless connectivity within each portable classroom.