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Council approves $2.06 million transfer into debt‑service reserve to smooth payments through FY2028
Summary
Poquoson authorized transfers totaling $2,058,000 ( $1.3M general fund + $758K capital projects fund) into a debt‑service reserve to reduce general‑fund transfers to debt service over the next two years; motion carried 6–1.
The Poquoson City Council voted to approve an ordinance transferring $1,300,000 from the general fund undesignated balance and $758,000 from the capital project fund into the debt‑service fund, for a total transfer of $2,058,000 intended to smooth mortgage payments in 2027 and 2028.
Assistant City Manager Tanya O'Connell said the transfers create a reserve that will bridge the city to a planned debt trough in FY2029 and allow the annual general‑fund transfer to debt service to drop from $3.9 million to about $3.3 million for two years.
"Future service payments will be that that we make in 2027 and 2028," O'Connell said, explaining the purpose of the reserve. She also noted a drafting error in the ordinance's Section 1 and asked council to correct the figure if the motion moved forward.
Council opened the floor for public comment but received none on this item. The ordinance passed by a vote of 6 in favor and 1 opposed. Council recorded that these funds are to be used as a one‑time reserve and not for ongoing operating expenses.
