Minutes 01/09/2018 - Laserfiche WebLink

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January 9, 2018 “ORDINANCE ACCEPTING WITH APPRECIATION A DONATION OF $100 FROM THE TIDEWATER BAPTIST WOMEN MISSIONARY AND EDUCATIONAL CONVENTION AND APPROPRIATING SAID FUNDS TO THE FY 2018 GRANTS FUND FOR USE BY THE DEPARTMENT OF SOCIAL SERVICES TO SUPPORT OPERATIONS OF THE SERVICES INTAKE UNIT.” Ayes: Clark, Lucas-Burke, Moody, Psimas, Smith, Whitaker, Rowe Nays: None 18 - 16 - Adoption of an ordinance authorizing the transfer of a total of $1,485,800 from the FY 2018 Debt Service Fund to the FY 2018 General Fund, including $1,115,800 to the Department of Fire, Rescue and Emergency Services Non-Capital Equipment Account line item of the FY 2018 General Fund Budget and $370,000 to the City Attorney Legal Contractual Services line item of the FY 2018 General Fund Budget. Background:  Per City Code, City Council is required to approve all budget transfers over $100,000.  In December 2017, the city refinanced $116 million of debt, saving $15.7 million over the life of the bonds. Debt Service costs in FY 2018 will be reduced by $1,185,000 for non-utility bonds and this savings can be utilized for other needs. In addition to the refinancing savings, the city has debt service cost savings of $300,000 for debt service issuance costs. Based on cashflow needs, the city will not need to issue new debt until FY 2019 so funding for issuance costs will not be needed. This is a total savings in the Debt Service Fund of $1,485,800.  Several needs for public safety equipment have been identified as critical needs for the safety of citizens and employees. The city’s biomedical equipment cache needs to be replaced, updated and o augmented to comply with state EMS guidelines and standards of clinical care requirements. A total of forty-four units are needed to ensure that all fire units have the necessary and up-to-date equipment for public safety. This includes twenty-five (25) Automatic External Defibrillator (AED) machines, twelve (12) Life Pack 15 machines and seven (7) mechanical Cardio Pulmonary Recitation (CPR) machines. A second set of turnout gear for firefighters is needed to reduce employee o and citizens’ exposure to chemicals and carcinogens. The Occupational Safety and Health Administration (OSHA), National Institute for Occupational Safety and Health (NIOSHA) and other professional Fire Associations recommend two sets of gear for firefighters. In order to properly store protective gear, new lockers are needed to replace o the outdated lockers that do not adequately protect gear.  The costs for outside legal counsel to litigate certain cases, including tax cases, is higher than initially budgeted and additional funds are required in the City Attorney’s contractual other account to cover these services. Discussion:  The annual budget is a plan that may require adjustments as circumstances change. Sound financial policy is to cover increase in operational expenses with savings from other expenditure accounts or with increases from additional current year revenue.  The proposed ordinance will transfer debt service savings to the Fire equipment line to cover $1,115,800 of medical gear and equipment and $370,000 to the city attorney other contractual-legal account for legal services. Financial Impact  This budget transfer will allow the city to procure fire equipment and gear and legal services needed in FY 2018. There is no impact to fund balance as current year debt service expense savings will cover the transfers. Recommended Action:  Adoption of the ordinance