MARCH 31, 1980 SPECIAL SESSION
M I N U T E S
SPECIAL MEETING
VIRGINIA BEACH CITY COUNCIL
Virginia Beach, Virginia
31 March 1980
A Special Meeting of the Council of the City of Virginia Beachi Virginia,
was called to order by Mayor Patrick L. Standing, in the Conference Room,
in the Administration Building, on Monday, 31 March 1980, at one o'clock
in the afternoon, for the purpose of presenting the Operating Budget for
Fiscal Year 1980-81; and, to recess into Executive Session for the purpose
of discussing personnel matters. Certain Council appointments are necessary
to meet the March 31, 1980 expirations, in accordance with Section 3.06
of the City Charter and 2-9 of the Code of the City of Virginia Beach.
Council Members Present:
John A. Baum, F. Reid Ervin, George R. Ferrell,
Barbara M. Henley, Clarence A. Holland, Vice
Mayor J. Henry McCoy, Jr., Donald W. Merrick,
Meyera E. Oberndorf, J. Curtis Payne, Roger L.
Riggs, and Mayor Patrick L. Standing
Council Members Absent:
None
ITEM #14946
Mayor Standing entertained a motion to allow Council to RECESS into
EXECUTIVE SESSION for the purpose of discussing the following:
1. Discussion or consideration of employment, assignment,
appointment, promotion, demotion, salaries, discipline or
resignation of public officers, or eriployees o.@ any public
body. (Personnel Matters).
Upon motion by Councilman Holland, seconded by Councilman Payne, City
Council voted to RECESS into EXECUTIVE SESSION following the INFORMAL
SESSION.
Voting: 11-0
Council Members Voting Aye:
John A. Baum, F. Reid Ervin, George R. Ferrell,
Barbara M. Henley, Clarence A. Holland, Vice
Mayor J. Henry McCoy, Jr., Donald W. Merrick,
Meyera E. Oberndorf, J. Curtis Payne, Roger L.
Riggs, and Mayor Patrick L. Standing
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Council Members Voting Nay:
@@one
Council Members Absent:
None
ITEM #14947
Councilman Holland advised lie had requested the City Attorney to
investigate the possibility of the City assessing property owners
for improveinents to their EDroperty by the City.
CounCilman Holland further advised the City Attorney found the
City could impose assessmerits for "local improvemen-@ purposes".
ITEM #14948
Councilwoman Henley requested the Department of Parks and Recreation
to study the feasibility of permitting model airplane flying on a
portion of the Munden Point Park.
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BUDGET PRESENTATION ITEM #14949
The City Manager advised the proposed Operating Budget for Fiscal
Year 1980-81 is $202, 852, 120, which represents an a,@pa:oximate sixteen
percent (16%) increase over the adjusted budget of $174,000,000.
The City Manager advised he was pleased with this budget as it
represents a realistic assessment ot the municipal corporation and
its needs; it presents the City's programs of municipal services for
the 1980-81 fiscal years; and, it details the costs for each of these
services and recommended the budget be adopted.
REVENUE SUMMARY
From the Commonwealth $ 63,049,492 31.08%
Other Local Sources (Fines, Licenses,
Sale of Properties, etc.) 48,589,517 23.96
General Property Taxes 47,248,017 23.29
Other Local Taxes 29,320,731 14.45
From Federal Covernment 7,427,126 3.66
Froin Unappropriated Surplus (1979-80) 7,217,237 3.56
$202,852,120 100.00%
APPROPRIATION SUMMARY
School Operations $ 85,844,041 42.32%
General Operations 85,179,500 41.99
Utility Operations 11,902,219 5.87
General Debt Costs 7,266,155 3.58
Utility Debt Costs 6,710,265 3.31
School Debt Costs 5,949,940 2.93
$202,852,120 100.00%
The City Manager is recommendina a real estate tax rate reduction of
seven cents (7cts). To the average homeowner, this reduction in the
rate will mean a net tax reduction of 9.5%. The average increase in
assessments is 9.3%; consequently, if City Council adopts the rec-
ommded reduction, approximatel,, sixty percent (60%) of the City's
taxpayers will recognize no increase or a reduction in real estate
taxes paid.
City Council has been able to reduce the real estate tax rate each
year for the past five years; and, the City Manager further indicated
he was able to recommend this reduction because of the City's excellent
financial condition, and also because of the coooeration he has received
from the Superintendent of Schools and his abilitv to maintain one of
the lowest per pupil costs in the State while stiil adhering to the
highest educational standards.
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FACTORS ALLOWING REAL ESTATE TAX RATE REDUCTION
Tourism - This continues to be a tremendous asset to our economv. The
ity anticipates that this year it will receive approximately $15,500,000
in direct taxes from this source.
Volunteers - The City is continuing and expanding its volunteer
program and has over 5,000 people working as volunteers in activities
ranging from fire fighting to senior citizen programs. Their efforts
are saving the City from $10 Million to $12 Million, which otherwise
would have to be budgeted.
New Construction - New growth amounted to 4.36%. In spite of inflation
and escallating borrowing rates, revenues derived from new construction
continue to benefit the City's economy on a short term basis. The City
Manager is concerned, however, that at the present time this new growth
has all but stopped; but discussions with members of the building industry
and home lendina institutions indicate that the City could have a complete
turnaround by spring of 1981 which could possibly affect future revenues.
The growth in commercial construction, such as shopping centers and
office parks, continues to be very encouraging and has provided a
very beneficial impact on local revenue sources. It is obvious that
Virginia Beach wit@ its sound ecnonorqy is an extremely attractive
location to the business community.
State Assistance - The 1980 General Assemblv passed the State Budget
with full funding of House Bill 599 which, in effect, is State Revenue
Sharing. This will result in $3.6 Million for Virginia Beach either
through reduction of local expenditures or additional state revenue.
Sale of Property - Rose Hall Properties continue to be a success and
the City Manager has included $1.8 Million from sale of land in this
project, which will complete the City's venture into the entrepreneural
world in order to preserve the historic shrine of the Francis Land House.
ASSUMPTIOD,@S
1. Reduction of the real estate tax rate by
seven cents (7cts).
2. Continuation of the existing tax rates in
all other categories.
3. No significant decline in the present
economy.
4. The use of $7.2 Million in unappropriate@,
funds for 1980-81.
5. Continuation of receipt of school impact
funds.
6. Rate of collection of revenues will be as
anticipated.
7. Agreement with the City of Norfolk on a
refuse disposal contract.*
8. Increasing water and sewer rates.**
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*For some time, the City Manager has negotiated with Norfolk City
Manager, Julian Hirst, concerning the use of Virginia Beach's
landfill as a disposal site for the City of Norfolk. This budget
includes the estimated revenue and expenses to provide the citizens
of Norfolk this service. In order to ensure control and prevent
outside firiqs from "smugqling" refuse into the City's landfill,
all commercial haulers will be charged the same fee and the only
haulers allowed to use our landfill will be from. Norfolk and Virginia
Beach. Therefore, included in the Budget Ordinances is an ordinance
to establish the rate of commercial haulers of refuse at $6.00 per
ton. All cities in Tidewater except Virginia Beach now charge
commercial haulers, and the City Manager believes for the City's
own protection it should charge also.
**In February, 1979, the consultinq firm of Buck, Siefert and Jost
presented the results of a water rate study. This report stated
a rate increase would be necessary during 1980. The City Manager
now finds that, in order to continue the existing level of utility
service, rate increases for water and sewer service will be necessary.
Such increases are needed to help meet the increased cost of utility
operations and to assure potential revenue bond buyers that they will
receive their anticipated return and that the Utility Fund will remain
self-sustaining. The 2.8% increase in the utility budget is obviously
minimal, and any further reduction will have a severely adverse effect
on service. The exact rate increase can only be determined after a
full engineering study, which should be completed in the near future.
RECOMMENDED APPROPRIATIONS
Taking into consideration the economic feelings of the City Council and
the taxpayers, and after considerable review, the Superintendent of
Sc@-iools and the City Manager cut the departmental requests by $13 Million
($9 Million City - $4 Million Schools).
The City Manager recommended increasing the mileage for Council from
$40.00 to $100.00 per month, and for employees and members of Boards
and Commissions from 15cts to 18-1/2cts per mile. This same action was
taken in the Gene,al Assembly, and the City Manager feels it is
justified to reimburse employees for conducting City business in
their own vehicles.
Twenty additional police officers and related equipment, plus two (2)
precinct clerks to relieve police officers for other duties, are
primarily responsible for the large increase. This increase is
necessary to provide protection to a growing population, and to
meet seasonal demands in shifts of personnel, as well as to rest)ond
to the tremendous increase in requests for radar units in residential
neighborhoods.
Thirty new firefighters plus related equipment came as a result of
discussions the City manager has had with both the Fire Chief and
his staff. All indicated that their top priority was Tanpower.
Granting this increase will staff the department with sufficient
full-time firefighters to adequately respond to any fire situation.
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As in pr6vious years, education continues to be the largest single
expenditure in the budget. School Operations total $85.8 Million
in Sch6ol Debt Costs of $5.9 million. The overall increase of
20.76% represents a 14.4% increase in local funds.
The main increase in the Department of Public Works is not in man-
power, but primarily reflects salary increases, inflation's effect
on materials and supplies, and replacement of worn out equipment.
Also included is approximately $260,000 for stoplights to attempt
to satisfy the coiintless justified requests for signalization.
Finally, in an effort to improve the condition of roads after
utility cuts, $530,000 has been recommended for road improvements.
The Citv Manager indicated previously that growth in housing construction
has been a short term benefit of five percent (5%) to seven percent (7%)
each year in additional local revenue. The timing of the opening of the
Arts and Conference Center (Pavilion) could not have been more appropriate.
The City Manager indicated he has consistently recom-mended a more
diversified tax base in order to attempt to keep real estate taxes
low. Without such an expansion and diversification, and with limits
imposed by the General Asserably on most other sources of local revenue,
the real estate tax will continue to be the source to which the Citv
must turn.
The City Manager further stated he believed the additional tax generated
by the "thousands of delegates" attending conventions at Pavilion will
help to keep Virginia Beach's real estate tax rate low. Already the
City has booked conventions bringing 121,650 delegates to Vir(Tinia
Beach in fiscal year 1980-81. It is estimated that the average
delegate spends $100.00 a day and stays an average of three (3)
days. A total of $36.5 Million generated during the "off season"
when hotel rooms have traditionally been empty. The majority of
the staffing (68 employees in Pavilion) will be necessary part-time
service employees such as ushers, ticket takers, custodial workers
and parking and first aid attendants.
PAY INCREASE
The majority of the remainder of the increase in the general government
budget (approximately $6 Million) is devoted toward projected across-the-
board increases and the first full year payment of the dental plan
benefits and pay raises approved by Council last year. Because of the
continuing damage that inflation is inflicting upon the purchasing
power of employees, the City Manager is recomplending a two-step
across-the-board pay raise effective July 1, 1980.
In addition, this budget includes funds that, effective September 1,
1980, the City's revised pay and classification plan will have a "true"
five percent (5%) amount between each pay step. Currently, this
differential varies between 2.7% and 5.5%.
03/31/80
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PUBLIC HEARING
The City Manager recommended he be authorized to advertise a Public
Hearing on the budget for Wednesday, April 30, 1980, at 2:00 p.m..
It is anticipated that several Council worksho-ps will be scheduled.
First reading of the budget should occur on Monday, Mav 5, 1980,
followed by a second reading on Monday, May 12, 1980. A digest
of the budget will be distributed in the April 26/27 issue of
the Virginia Beach BEACON, and full copies of the budget will
be available for public study at all branches of the public
library system.
For discussion of the budget Council will meet on Thursday,
April 10, 1980, at 7:30 p.m., in the City Manager's Conference
Room.
City Council RECESSED into EXECUTIVE SESSION (2:12 p.m.) for
briefing prior to the FORMAL SESSION in the Council Chambers.
03/31/80
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F 0 R M A L S E S S I 0 N
VIRGINIA BEACH CITY COUNCIL
31 March 1980
2:20 p.m.
Council Members Present:
John A. Baum, F. Reid Ervin, George R. Ferrell,
Barbara M. Henley, Clarence A. Holland, Vice
Mayor J. Henry McCoy, Jr., Donald W. Merrick,
Meyera E. Oberndorf, J. Curtis Payne, Roger L.
Riggs, and Mayor Patrick L. Standing
Council Members Absent:
None
ITEM #14950
Upon motion by Councilman Holland, seconded by Councilwoman Oberndorf,
City Council voted to REAPPOINT the following to the PUBLIC LIBRARY
BOARD for terms of three (3) years, beginning 1 April 1980 and
expiring 31 March 1983:
Mrs. Marvin L. Dozier
Mrs. Ira Hancock
Voting: 11-0
Council Members Voting Aye:
John A. Baum, F. Reid Ervin, George R. Ferrell,
Barbara M. Henley, Clarence A. Holland, Vice
Mayor J. Henry McCoy, Jr., Donald W. Merrick,
Pleyera E. Oberndorf, J. Curtis Payne, Roger L.
Riggs, and Mayor Patrick L. Standing
03/31/80
Council Members Voting Nay:
None
Council Members Absent:
None
ITEM #14951
Upon motion by Councilman Payne, seconded by Councilman Holland, City
Council voted to REAPPOINT the following to the HISTORICAL REVIEW
BOARD for terms of two (2) years, beginning 1 April 1980 and
expiring 31 March 1982:
llr. Herbert L. Smith, III
Mrs. W. R. Miller
Voting: 11-0
Council Members Voting Aye:
John A. Baum, F. Reid Ervin, George R. Ferrell,
Barbara M. Henley, Clarence A. Holland, Vice
Mayor J. Henry McCoy, Jr., Donald W. Merrick,
Meyera E. oberndorf, J. Curtis Payne, Roger L.
Riggs, and Mayor Patrick L. Standing
Council Members Voting Nay:
None
Council Members Absent:
None
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ITEM #14952
Upon motion by Vice Mayor McCoy, seconded by Councilman Ferrell,
City Council voted to REAPPOINT the following to the PERSONNEL
BOARD:
Mr. Charles W. Gardner - three (3) year term, beginning
7 March 1980 and expiring 6
March 1983
Mr. Albert Lee Bonney - three (3) year term, beginninq
7 March 1980 and expiring 6
March 1983
Mrs. Ruby Cliristian - three (3) year term, beginning
1 March 1980 and expiring 28
February 1983
Voting: 11-0
Council I-lembers Voting Aye:
John A. Baum, F. Reid Ervin, George R. Ferrell,
Barbara M. fienley, Clarence A. Holland, Vice
Mayor J. Henry McCoy, Jr., Donald W. Merrick,
Meyera E. Oberndorf, J. Curtis Payne, Roger L.
Riggs, and Mayor Patrick L. Standing
Council Members Voting Nay:
None
Council Members Absent:
@lone
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ITEM #14953
Upon motion by Councilman Riggs, seconded by Councilman Holland,
City Council voted to REAPPOINT Mr. D. Murr4y Malbon to the MOSQUITO
CONTROL CO,,24ISSION (Virginia Beach/Lynnhaven) for a term of four (4)
years, beginning 5 April 1980 and expiring 4 April 1984.
Voting: 11-0
Council Members @loting Aye:
John A. Baum, F. Reid Ervin, George R. Ferrell,
Barbara M. Henley, Clarence A. Holland, Vice
Mayor J. fienry McCoy, Jr., Donald W. Merrick,
Meyera E. Oberndorf, J. Curtis Payne, Roger L.
Riggs, and Mayor Patrick L. Standing
Council Members Voting Nay:
None
Council i'4embers Absent:
'4one
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ITEM #14954
Due to the absence of the City Manaaer during the EXECUTIVE SESSION
held at 2:12 p.ri., he requested Council RECESS into EXECTJTIVE SESSION
for the purpose of discussing personnel matters.
Upon motion by Councilman Payne, seconded by Councilman Baum, City
Council voted to RECESS into EXECUTIVE SESSION for the purpose of
discussing the following:
1. Discussion or consideration of employrient, assignment,
appointment, promotion, demotion, salaries, discipline or
resignation of public officers, or employees of any public
body. (Personnel Matters).
Voting: ii-O
Council Members Voting Aye:
John A. Baum, F. Reid Ervin, George R. Ferrell,
Barbara M. Henley, Clarence A. Holland, Vice
Mayor J. Henry McCoy, Jr., Donald W. Merrick,
Meyera E. Oberndorf, J. Curtis Payne, Roger L.
Riggs, and Mayor Patrick L. Standing
Council Members Voting Nay:
None
03/31/80
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Council Merbers Voting Nay:
None
Council Me@ers Absent:
None
ITEM #14955
City Council reconvened in open session and upon motion by Councilman
Riggs, seconded by Councilman Baum, ADJOURNED the meeting at 3:05 p.m.
Diane M. Hickman, Deputy ity Clerk
Ru-th Hodges S'mith, City Clerk Mayo@'Patrick L. Standingi
City of Virginia Beach,
Virginia
Special Meeting
31 March 1980
h
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