Minutes 07/14/2026 - Laserfiche WebLink

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July 14, 2026 26-167d: Adoption of an ordinance confirming that city payroll practice will shift from payment in advance to payment in arrears and appropriating $4,596,200 from the fund balance of the general fund to the FY 2027 general fund budget and transferring $1,621,200 of said amount to various fund budgets for the purpose of maintaining payments to employees and employee leave balances through said shift. Background:  The City of Portsmouth’s current payroll practice is to issue payment in advance of the performance of work. In other words, when an employee receives a paycheck, that paycheck is compensating the employee for the subsequent two weeks of work. Discussion:  It is proposed to shift payroll practice from payment in advance to payment in arrears. In other words, when an employee receives a paycheck, that paycheck would be compensating the employee for the previous two weeks of work.  Making payment for working hours completed has several advantages, including the certainty that payment is being made for work that has been performed.  st The shift would take effect with the issuance of the July 31 paycheck. The July st 31 paycheck would simply be deemed to be compensating employees for the prior two weeks of work rather than the subsequent two weeks.  No paycheck would be skipped and no leave accrual would be lost. In order to facilitate the shift without skipping a paycheck or losing two weeks of leave accrual, it will be necessary as an accounting matter to appropriate $4,596,200 from the Fund Balance of the General Fund to the FY 2027 General Fund Budget. $1,621,200 of the money so appropriated will be transferred to the other Funds that have some relation to payroll. Financial impact:  Funds in the amount of $4,596,200 will be appropriated from Fund Balance to the FY 2027 General Fund Budget. Of this amount, $1,621,200 will be transferred to other Funds. Recommended Action:  Adoption of the ordinance. Strategic Pillar # 2: Financial & Operational Excellence. Next Steps Following Council Action:  The Finance Department and the Department of Human Resources will make all necessary accounting adjustments. “ORDINANCE CONFIRMING THAT CITY PAYROLL PRACTICE WILL SHIFT FROM PAYMENT IN ADVANCE TO PAYMENT IN ARREARS, AND APPROPRIATING $4,596,200 FROM THE FUND BALANCE OF THE GENERAL FUND TO THE FY 2027 GENERAL FUND BUDGET AND TRANSFERRING $1,621,200 OF SAID AMOUNT TO VARIOUS FUND BUDGETS FOR THE PURPOSE OF MAINTAINING PAYMENTS TO EMPLOYEES AND EMPLOYEE LEAVE BALANCES THROUGH SAID SHIFT.” 26-167e: Adoption of an ordinance accepting settlement funds in the amount of $15,904.38 from opioid settlements and appropriating said amount in the FY 2027 Behavioral Healthcare Service Fund for use by BHS for approved abatement purposes as defined by the Virginia Opioid Fund and Settlement Allocation MOU. Background:  The City of Portsmouth was one of several Virginia localities to file suit against entities engaged in the manufacture, marketing, promotion, distribution, and dispensing of opioids.