Minutes 10/10/2017 - Laserfiche WebLink

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October 10, 2017 Next Steps Following Council Action:  The Finance Department will make the necessary budget adjustment. Motion by Ms. Lucas-Burke, and seconded by Ms. Psimas, to adopt the following ordinance, and was adopted by the following vote: “ORDINANCE ACCEPTING $1,400 OF FUNDING RECEIVED FROM THE VIRGINIA DEPARTMENT OF BEHAVIORAL HEALTH AND DEVELOPMENTAL SERVICES AND APPROPRIATING SAID AMOUNT IN THE FY 2018 BEHAVIORAL HEALTHCARE SERVICE FUND FOR USE BY THE DEPARTMENT OF BEHAVIORAL HEALTHCARE SERVICES TO ACQUIRE A PREVENTION DATA LICENSE IN FURTHERANCE OF ITS EFFORTS TO ADDRESS OPIOID ABUSE.” Ayes: Cherry, Clark, Lucas-Burke, Moody, Psimas, Whitaker, Rowe Nays: None 17 - 446 - Adoption of a resolution authorizing the City Manager to execute a Loan Agreement with the Commonwealth of Virginia for a loan of Three Million Four Hundred Thousand Dollars ($3,400,000) to cover the loss of personal property tax revenue resulting from the terms of that certain Amended and Restated Deed of Facilities Lease Agreement entered into as of September 21, 2016 by the Virginia Port Authority and Virginia International Gateway, Inc. Background:  The Virginia Port Authority (“VPA”), a political subdivision of the Commonwealth of Virginia, leases and operates a large port facility located in Portsmouth, Virginia and known as Virginia International Gateway;  In late 2016 VPA and its landlord, Virginia International Gateway, Inc. (“VIG”) entered into an amended and restated lease (the “Lease Amendment”); under the Lease Amendment the ownership of certain personal property has been and will be transferred from VIG to VPA, resulting in a substantial loss of personal property tax revenue to the city;  City Officials working with the City’s General Assembly delegation successfully obtained the inclusion of an interest-free treasury loan from the Commonwealth in Chapter 836, Item 454 #1C in the 2017 Virginia Appropriation Act.  The loan will be administered through the Commissioner of Highways (“VDOT”).  The amount of the loan will be $1,700,000 in FY 2017 and $1,700,000 in FY 2018, for a total of $3,400,000.  It is anticipated that an additional $1,700,000 will be provided in FY 2020 and that similar language will be included in the 2018-2020 biennium budget; if the additional amount is approved, an addendum will be added to the loan agreement. Discussion:  Once the loan agreement is executed, the city will submit a written request to the VDOT for disbursement of the loan funds.  Repayment of the loan will commence in FY 2022. If the City’s personal property tax revenue has not increased by $1,700,000 or more between FY 2017 and FY 2021, the City’s payments will be $200,000 annually from FY 2022 through FY 2030. If the City’s personal property tax revenue has increased by $1,700,000 or more between FY 2017 and FY 2021, then annually from FY 2022 through FY 2030 the City will pay the greater of $200,000 or the amount of revenue in excess of the $1,700,000 increase. In either case, any remaining balance will be repaid in FY 2031. Financial Impact:  FY 2018 cash will be increased by $3,400,000 and a liability for that amount will be recorded. Staff Recommends:  Adoption of the resolution.