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<br />
<br />October 8, 1985
<br />
<br /> 85~303 -_ Letter from.the City Ma~ager-reco~nending ~adolJtion o~f an ordinance to amend Section 35-8
<br />of the Code of the City of Portsmouth pertaining to interest on delinquent taxes.
<br />
<br /> "The City Charter, approved by the General Assembly of Virginia in 1970, provides in
<br />62.13 that any person failing to pay any taxes or licenses due shall be charge interest at
<br />the rate of 1% per month (12% annually]. The Tax Code of the Commonwealth of Virginia provide
<br />that local gcvernments can charge interest at a rate not exceeding 10% annually. In 1981, the
<br />City Attorney opined that the Charter provision superseded the authority given local govern-
<br />ments under the Tax Code, and the City could continue to charge at the rate of 12% annually.
<br />The General Assembly of Virginia in revising the Tax Code has amended the applicable section
<br />by adding the following paragraph:
<br />
<br /> 'This section shall be the sole authority for local ordinance settmng
<br />due dates of local taxes and penalty and interest thereon, and shall supersede
<br />the provisions of any Charter or special act,'
<br />
<br /> The Attorney General's Office has indicated to the City Attorney that the language clearl
<br />indicates an intent on the part of the General Assembly ~o supersede the City's Charter.
<br />
<br /> Accordingly, the City Attorney has recommended that the Council adoFt an ordinance
<br />amending the City Code providing for interest at the rate of 10% per annum for the first year
<br />such taxes are delinquent. In accordance with this enabling legislation, the rate of the
<br />second and subsequent years of delinquency will be equal to the adjusted prime rate charged
<br />by banks rounded to the nearest full per cent as determined by the Internal Revenue Service.
<br />The City Attorney further suggest that no change be made to the City Charter provision at this
<br />time, but, ~n lieu thereof, the City Council include within its. Legislative Priority Program
<br />a request that the applicable section of the Code be amended to provide a grandfathering of
<br />any Charter provmsmon which establishes a separate interest rate which had been enacted prior
<br />to January 1, 1985.
<br />
<br /> I concur in the
<br />enclosed ordinance."
<br />
<br />recommendation from the City Attorney and request your adopzmon of the
<br />
<br /> On motion of Mrs. Lucas and seconded by Mr. Gray, the following ordinance was adopted on
<br />first and final reading, and by the following vote:
<br />
<br />"AN ORDINANCE TO AMEND THE CODE OF THE CITY OF PORTSMOUTH, VIRGINIA, 1973, AS
<br />AMENDED, BY ADDING SECTION 35-8 FHEREOF, PERTAINING TO TAXATION.'
<br />
<br /> Ayes: Beamer, Corprew, Gray, Lucas, Webb, Holley
<br /> Nays: None
<br />
<br /> 85-304 Letter from the City Manager recommending adoption of an ordinance to amend
<br />Section 10 of the City of Portsmouth, Virginia, Classification and Pay Plan, Ordinance No.
<br />1985-43, pertaining to overtime and repealing Sections il(a), (b), (i), (k), pertaining to
<br />additional compensation firefighters and police officers.
<br />
<br /> "As you are aware, we have been revising the applicable Administrative Policy Directives
<br />(APD), to ensure the City's compliance with the Fair Labor Standards Act. The applicable
<br />changes in zhe Directives have been presented for my signature; however, the Personnel
<br />Director and the City Attorney have advised that an amendment to the Pay and Classification
<br />Plan is required in order to ~mplement these regulations.
<br />
<br /> As previously discussed, compliance with the Fair Labor Standards Act could cost the Cit'
<br />more than a million dollars per year unless schedule changes are made. In the absence of
<br />action by the United States Congress to remove localities from the coverage under the Fair
<br />Labor Standards Act, we have no choice but to move forward with implementation. The City
<br />Attorney has advised that he has taken the necessary steps for the City to participate in the
<br />litigation being pursued by the National Municipal Litigation Center of the National Municipal
<br />Legal Defense Fund.
<br />
<br /> In the meanwhile, however, I have to recommend the adoption of the attached amendment to
<br />the Pay and Classification Plan. Upon the adoption of same, I will implement the Administra-
<br />tive Policy Directives which will bring us in compliance with the Fair Labor Standards Act."
<br />
<br /> The City Manager stated that the compliance date had been extended from October 15, 1985
<br />to November 1, 1985, and requested deferment of the item.
<br />
<br /> Motion of Mrs. Webb and seconded by Mr. Gray, that the matter be deferred to the meeting
<br />of October 22, 1985, and was adopted by unanimous vote.
<br />
<br /> 85-305 - Letter from the City Manager recomme~g adoption of a resolution authorizing
<br /> the issuance of Industrial Development Revenue Bonds in an amount not to exceed $6,100,000
<br /> for the benefit of Churchland Shopping Center Associates, a Virginia General Partnership, to
<br /> assist in the acquiring, renovating, constructing and equipping of a commercial project in
<br /> the City of Portsmouth.
<br />
<br /> "The Portsmouth Redevelopment and Housing Authority held a public hearing to consider
<br /> the issuance of Industrial Development Revenue Bonds for Churchland Shopping Center Associate~
<br /> a Virginia General Partnership, in an amount not to exceed $6,100,000 for assistance in
<br /> equipping a commercial project in the City of Portsmouth, Virginia.
<br />
<br /> The Portsmouth Redevelopment and Housing Authority adopted a Resolution of Intent to
<br /> issue the Bonds, and in accordance with the applicable State and Federal law, has requested
<br />
<br />
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