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November 13, 2018 <br /> <br />18 - 428 - Adoption of an ordinance appropriating the sum of $1,900,000 from the <br />General Fund – Unassigned Fund Balance to the Non-Departmental, Salary - Bonus <br />line item in the FY 2019 General Fund Budget for the purpose of funding a one-time <br />supplement in the net amount of $1,000 to all full-time employees of the City of <br />Portsmouth who commenced employment prior to January 1, 2018 and remain <br />employed as of the date of payment of the supplement, with the exception of certain <br />categories of employees specified herein. <br /> <br />Background: <br /> <br /> Per City Code, Section 12-5, City Council is required to approve all budget <br />transfers over $100,000. <br /> <br /> On October 23, 2018, there was a consensus of City Council to provide a $1,000 <br />net pay supplement to full-time employees who began work before January 1, 2018, with <br />the exception of Constitutional officers and their staff, court employees, and employees <br />paid through a grant. <br /> <br /> The total number of employees estimated to receive the supplement is <br />approximately 1,100, which equates to $1,900,000. <br /> <br /> Unassigned year end savings (fund balance appropriation) will be utilized to fund <br />the employee bonuses. <br /> <br />Discussion: <br /> <br /> The FY 2018 operating budget appropriated $5.8 million of fund balance from the <br />General Fund. Based on unaudited draft General Fund financial statements at fiscal year <br />end June 30, 2018, the actual use of fund balance was approximately $1 million, which <br />is significantly less than the amount budgeted. <br /> <br /> The proposed ordinance includes the appropriation of $1,900,000 from the <br />General Fund - Unassigned Fund Balance to the Non-Departmental, Salary - Bonus line <br />item. <br /> <br /> It is anticipated that the bonuses to employees will be distributed December 7, 2018. <br /> <br />Financial Impact: <br /> <br /> The budget appropriation will allow the city to provide a salary supplement to <br />eligible employees. <br /> <br />Recommended Action: <br /> <br /> Adoption of the ordinance. <br /> <br />Next Steps Following Council Action: <br /> <br /> <br /> The Finance Department will complete the necessary budget adjustments. <br /> <br />1. Michael Rudmin, 2805 Victory Boulevard, spoke in opposition to this item. <br /> <br />2. Mark Geduldig-Yatrofsky, P. O. Box 50141, spoke in opposition to this item. <br /> <br />Motion by Mr. Moody, and seconded by Ms. Lucas-Burke, to adopt the following <br />ordinance, and was adopted by the following vote: <br /> <br />“ORDINANCE APPROPRIATING THE SUM OF $1,900,000 FROM THE GENERAL <br />FUND – UNASSIGNED FUND BALANCE TO THE NON-DEPARTMENTAL, SALARY - <br />BONUS LINE ITEM IN THE FY 2019 GENERAL FUND BUDGET FOR THE PURPOSE <br />OF FUNDING A ONE-TIME SUPPLEMENT IN THE NET AMOUNT OF $1,000 TO ALL <br />FULL-TIME EMPLOYEES OF THE CITY OF PORTSMOUTH WHO COMMENCED <br />EMPLOYMENT PRIOR TO JANUARY 1, 2018 AND REMAIN EMPLOYED AS OF THE <br />DATE OF PAYMENT OF THE SUPPLEMENT, WITH THE EXCEPTION OF CERTAIN <br />CATEGORIES OF EMPLOYEES SPECIFIED HEREIN.” <br /> <br />Ayes: Clark, Lucas-Burke, Moody, Psimas, Smith, Rowe <br />Nays: None <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br />