OFFICIAL MINUTES OF THE REGULAR MEETING OF THE MANASSAS PARK GOVERNING BODY HELD ON TUESDAY, AUGUST 24, 2004 AT 6:30 PM AT CITY HALL, ONE PARK CENTER COURT MANASSAS PARK, VIRGINIA
1. Roll Call: Frank Jones, Mayor
Kevin P. Brendel, Vice Mayor
Vonna L. Privett
Noreen C. Slater
Bryan Polk
Cynthia Gardner
Absent: Michael Bunner
Staff Present: Lana A. Conner, City Clerk
David Reynal, City Manager
Mercury T. Payton, Deputy City Manager
Eric Edmonson, Director of Finance
Councilmember Brendel stated from last Tuesday’s meeting there were four points that came across that Governing Body needs to be sure they addressed.
1. Cash flow issue to make sure that the city could sustain $500,000 additional cash flow within the available resources we had.
2. Budgetary to make sure that we had a budget that matched what we wanted to do both revenue and offsetting expenditure.
3. Appropriation to make those funds available
4. Safety valve to make sure that if something does happen that is not planned for that we have an effective means to cover the $500,000
He read a draft Ordinance with one revision.
ORDINANCE #: 04-1700-760
AN ORDINANCE TO AMEND 04-1700-749 TO APPROPRIATE FIVE HUNDRED THOUSAND DOLLARS ($500,000) TO THE SCHOOL CAPITAL PROJECTS FUND FOR THE PURPOSE OF PROVIDING INITIAL FUNDING FOR THE MANASSAS PARK MIDDLE SCHOOL RENOVATION PROJECT
Date of Meeting: AUGUST 24, 2004
WHEREAS, the Governing Body has approved the project budget for the Manassas Park Middle School renovations (the “Project”) in the amount of $18,750,000; and,
WHEREAS, the Project is to be financed by a combination of $18 million in borrowing, $50,000 in available cash, and $1.2 million in planning proffers;
WHEREAS, the Governing Body has separately authorized the sale of $9.5 million in general obligation bonds to finance the Project, such bonds to be issued by the Virginia Public School Authority ("VPSA") later in 2004; and,
WHEREAS, the initial expenses of the Project are now due and payable; and,
WHEREAS, the Governing Body desires to appropriate $500,000 designated from bond sale proceeds to the city's school division (the "School Division") for the purpose of paying the initial expenses of the Project; and,
WHEREAS, the Governing Body intends to separately appropriate an additional $18,250,000 for the Project from bond sale proceeds, available cash and planning proffers at a subsequent meeting(s); and,
WHEREAS, notwithstanding the appropriation of $500,000 to the School Division for the Project, and despite the expected availability of funding from the anticipated issuance of general obligation bonds by VPSA, the Governing Body is nonetheless required to meet cash flow needs for the day-to-day operation of the city; and,
WHEREAS, the Governing Body is also required to maintain a balanced budget and therefore desires to amend the FY05 Fiscal Plan to add $500,000 in Bond Proceeds Revenue and $500,000 in MPMS Construction Expenditures to the School Capital Projects Fund; and,
WHEREAS, the Governing Body reserves the right, at its sole discretion, to obtain short-term commercial financing to meet cash flow needs for the day-to-day operation of the city if such cash flow needs are negatively impacted by disbursements made by the School Division for the Project and other school operating costs in excess of the regular quarterly appropriations to the school board for school operations; and
WHEREAS, the costs of such short term commercial financing (principal, interest, loan origination fees, etc.), if needed, will be paid from funds appropriated to the School Division for purposes other than the Project;
NOW THEREFORE BE IT ORDAINED that the Governing Body of the City of Manassas Park, meeting in special session on August 24, 2004, approves the revisions to the FY-05 Fiscal Plan as follows:
FY-05 Fiscal Plan
AMENDED
City General Fund $28,277,114
School Operating Fund 24,165,863
School Food Service Fund 724,146
School Debt Service Fund 1,883,236
Enterprise Fund 6,685,746
Capital Projects Fund 8,975,750
Debt Service Fund 694,989
School Capital Projects Fund 500,000
PRTC Trust Fund 1,041,893
Bull Run ASAP 931,000
Total $73,879,737
MOTION: Councilmember Brendel moved the Resolution for purposes of this ordinance.
SECONDS: Councilmember Polk
Councilmember Polk stated he thought there was an error in the ordinance but there is not an error. The ordinance that Councilmember Brendel read was $17,500,000 but he read $18 million in second paragraph. The $17,500,000 was correct. It is correct as amended. The Mayor stated that is with the new math.
VOTE ROLL CALL: Yes: Brendel, Polk, Gardner, Privett, Slater, Jones
MOTION: Councilmember Brendel moved to amend the FY05 fiscal plan adding a line in the revenue side of the budget for $500,000 to be labeled “Bond Proceeds Revenue and likewise in the expenditure side of the budget $500,000 labeled Manassas Park Middle School Construction Expenditures to the school capital project fund.
SECOND: Councilmember Slater
VOTE ROLL CALL: Yes: Brendel, Slater, Gardner, Polk, Privett, Jones
MOTION: Councilmember Brendel moved the appropriation of $500,000 labeled Manassas Park Middle School Construction expenditures for School Capital Projects Funds be appropriation to the school division.
SECOND: Councilmember Privett
VOTE ROLL CALL: Yes: Brendel, Privett, Gardner, Polk, Slater, Jones
Councilmember Brendel stated the way the budget stands, with the amendments Governing Body has just made, is that they have not altered the 57% Revenue Sharing Agreement. That is still in place and that is exactly what the schools are getting is 57% nothing more nothing less.
The Mayor stated this also maintains a balanced budget and what we have done is now reflects the accounts accordingly.
By consensus of Governing Body, the Mayor adjourned the Special Meeting at 6:45 pm and moved into a Worksession.
The Governing toured city hall looking at space availability and then toured the police department and then a tour of the new equipment in the fire department and then an outing.
Approved September 21, 2004
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