Minutes 05/28/2024 - Laserfiche WebLink

Home Browse Search

May 28, 2024 Next Steps Following Council Action:  BHS will expend the Settlement Funds for Approved Abatement Purposes. Motion by Ms. Lucas-Burke, and seconded by Mr. Hugel, to adopt the following ordinance, and was adopted by the following vote: “ORDINANCE ACCEPTING SETTLEMENT FUNDS IN THE AMOUNT OF $480,713.26 FROM VARIOUS OPIOID SETTLEMENT ACCOUNTS AND APPROPRIATING SAID AMOUNT IN THE FY 2024 BEHAVIORAL HEALTHCARE SERVICE FUND FOR USE BY BHS FOR APPROVED ABATEMENT PURPOSES AS DEFINED BY THE VIRGINIA OPIOID FUND AND SETTLEMENT ALLOCATION MOU. ” Ayes: Barnes, Hugel, Lucas-Burke, Moody, Tillage, Whitaker, Glover Nays: None 24 - 145 - a) Adoption of an ordinance authorizing the issuance and sale of City of Portsmouth, Virginia, General Obligation Bonds to include new money bonds in an original principal amount of not to exceed $46,500,000 and refunding bonds. b) Adoption of an ordinance amending the FY 2024 Capital Improvement Fund Budget by: (1) increasing the revenue source General Obligation Bonds in the amount of $46,500,000; (2) increasing expenditures in the category “Municipal Facilities” by the same amount; and (3) appropriating $46,500,000 to the City Jail (Elmhurst) project in the Municipal Facilities Category of said Capital Improvement Fund Budget. Background:  By Resolution R-24-13 adopted on May 14, 2024 City Council authorized the City to acquire the Hampton Roads Regional Jail facility located at 2690 Elmhurst Lane (“HRRJ”).  The purchase price for HRRJ is $31,500,000. In addition, repairs and improvements will be required so that HRRJ can be converted into the City’s local jail. Discussion:  To fund the acquisition, repairs, and improvements, the City intends to issue General Obligation Bonds in the approximate amount of $46,500,000.  Item (A) is the proposed adoption of an ordinance authorizing the issuance of the bonds.  In addition, the bond issuance was not included as part of the City’s FY 2024 budget (adopted May 9, 2023) and the budget must therefore be amended. Because the issuance will increase revenues and expenditures by more than 1% of the total budget, Section 15.2-2507 of the Virginia Code requires that a public hearing be held.  th The public hearing has been noticed for May 28.  Item (B) is the proposed adoption of a budget amendment ordinance, to be considered by City Council after the public hearing is completed. Financial Impact:  Item A authorizes the issuance of General Obligation Bonds in the amount of not to exceed $46,500,000.  Item B amends the FY 2024 City Budget to appropriate the bond proceeds. Recommended Action:  Adoption of the ordinances. Next Steps Following Council Action:  The Finance Department will make the necessary budgetary adjustments.  The City will proceed with the issuance of bonds for the purchase, repair, and improvement of HRRJ.