Title
Resolution of the City Council of the City of Hampton, Virginia Pursuant to Virginia Code Section 37.2-504(a)(11) Authorizing the Hampton-Newport News Community Services Board to Incur Certain Borrowing Obligations
Purpose
PURPOSE/BACKGROUND:
The FY2019-20 Performance Contract now requires that all operating Community Service Boards ("CSB") maintain an operating reserve sufficient to cover at least two months of personnel and operating expenses and ensure that the CSBs financial position is sound. Based on the current HNNCSB budget, this would equate to approximately $11.6MIL dollars. THe HNNCSB currently has a cash operating balance of $7.8MIL dollars. In order to meet the new Performance Contract requirements, the HNNCSB is requesting an increase to the current line of credit from $3MIL dollars to $5MIL dollars to ensure that they are in compliance with the new state requirements. Code of Virginia section 37.2-504 A(11) permits CSBs to apply for and accept loans as authorized by the governing body of each city or county that established it.
Discussion:
As with previous requests of this nature, Council's adoption of the resolution does not obligate the City in anyway on the debt nor constitute any guarantee of repayment of any part of the loan or line of credit. It merely fulfills the state law requirement referenced above.
Impact:
Enable compliance with the Performance Contract requirements and the applicable state code.
Recommendation:
Rec
Approve on the consent agenda.
Body
WHEREAS, the City of Hampton, Virginia (“the City”), with the City of Newport News, Virginia established the Hampton-Newport News Community Services Board (the "Board") as required by Section 37.2-500 of the Code of Virginia, 1950, as amended; and
WHEREAS, the Code of Virginia (37.2-504 A (11)) permits Community Services Boards to apply for and accept loans as authorized by the governing body of each city or county that established it; and
WHEREAS, the Board maintains...
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