MARCH 30, 1976 SPECIAL SESSION
SPECIAL MEETING
OF THE
HONORABLE CITY COUNCIL
OF THE
CITY OF VIRGINIA BEACII, VIRGINIA
Marcli 30, 1976
The special meeting of the Council of the City of Virginia Beach,
Virginia, was held in the Council Chambers, in the Administration
Building, in the Borough of Princess Anne, on Tuesday, March 30,
1976, at 10:00 A.M., for the purpose of presenting the 1976-77
Operational Budget for the City of Virginia Beach, Virginia.
Councilmen present: John A. Baum, Robert 11. Callis, Jr., Vice
Mayor George R. Ferrell, Charles W. Gardner, John R. Griffin,
Clarence A. Holland, J. Henry McCoy, Jr., Mayor J. Curtis Payne,
and Floyd E. Waterfield, Jr.
Councilmen absent: Rol)ert B. Cromwell, Jr., and Patrick L.
Standing
ITEM #9461
iMayor J. Curtis Payne noted tliat the Special Meeting, called by
City Manager, George L. flanbury, was for the purpose of receiving
the proposed City budget for the fiscal year beginning July 1, 1976
and ending June 30, 1977. Tlie meeting is in accordance witli Chapter
Five of tlie Cliarter of tlie City of Virginia Beacil, Virginia.
Below is a brief suminary of tlle proposed budget:
BUDGET IN BL@IEF
Revenue Surcimary
From the Commonwc.-alth $ 40,347,101 32.Wl@
General Property Taxes 33,Gl5,424 27.3
Other Local Sources
(Fines, Licenses, Salr-@
of Propcrty) 20,21-9,290 16.4
Other l,ocal- Taxcs 18,176,000 14.8
Use of Unappropriated Funds
(1975-76) 6,195,073 5.0
From Federal Government 4,520,702 3.7
$123,073,590 100.0%
Appropriation Surmiary
School operations $ 53,511,330 43.5%
City Operations 51,564,813 41.9
Utility Operati.ons 6,488,337 5.3
City Debt Retirement 4,227,460 3.4
School Debt Retirement 3,970,976 3.2
Utility Debt Retirement 3,310,674 2.7
$123,073,590 100.0%
This budget contains no increase in any tax category.
Such an accomplishment was no easy task. Although it con-
tains no tax iiicrcases, it does represent a 13.8% increase
over the"adopted budgct for 1975-76. However, when compared
with an increase in population of 3.5% and an iftflationary
spi.ral of 9.1%*. for 1975 and 7-8% projected for 1976, the
increase is certainly reasonable.
Key Points of Budget
1) Continuation of present level of services to citizens
and a :selected expansion of services, as exemplified
by the following:
(a) opening of Farmers Market required
$12,000 increase iiicluded in t-his budget.
(b) opdning of Great Neck Library, demanding
an increase in s-taff incl.uded in this
budget, $71,847.
(c) opening of Virginia Beach's first
recreation center in Kempsville, requiring
an increase included in this-budget of
$141,400.,
2) No increase in tlle rate of taxcs in any category.
. 1
3) A $14.9 million increase over 1975-76 adopted budget
(13.8% increase).
4) A 5% general pay increase to all city employees beginning
October 1, in order to offset some of tlle rise in cost
of living during the last year of 9.1% However, because
of step iiicreases for school pcrsonnel and merit increases
for city employees, the average inbrease for all employees
is approximately 7.5%.
5) Increase of 272 employees, of which 101 are CETA employees.
Increase of 191 scliool employees, of which 13 are CETA.
This increase is necessary if we are to continue with
present programs.
Assumptions
1) There will be no significant decline in the present level
of the economy.
2) Ther6 will be no substantial change in the rate of revenues
collected.
3) The tax on hotel-motel rooms and meals and restaurant
taxes iinposed last July 1, will remain in effect.
4) We will dontinue to receive Federal Public Law 874 funds
(Impact Funds).
5) Continuation of City Council's policy tllat the water and
sewer fund will be self-supporting with no subsidies from
the General Fund.
6) Continuation of City Council's policy not to use revenue
sharing ahd community development funds for operating
expenses, but capital outlay.
If City Council is in disagreement with any of the forego4-ng
assumptions, the recommended budget should be adjusted
accordingly.
It was pointed out by tlie City Manager that even though the real
estate tax is regressive, Virginia Beach's real estate tax is the
lowest in the Tidewater area and one of the lowest in the Commonwealth
regardless of the size of the municipality - 90cts per $100 of evaluation
(See page 4 of the proposed budget).
A detailed study of pages 4, 5 and 6 indicates tliat Virginia Beach
has retained the lowest personal property tax - a rate of $2.70 on
a true tax rate per $100.
A listing in the proposed budget indicates that Virginia Beach has
the lowest number of employees per 1000 population of the major
Cities in Virginia - 10.8 per 1000 population.
A copy of the proposed budget is available for public perusal in
all branches of the City Library, and also in tl-ie office of the
City Clerk.
ITEM #9462
City Council set the following dates for budget briefings and hearings:
April 6, 1976 7:30 p.m. - briefing
April 19, 1976 2:00 p.m - public hearing
April 23, 1976 2:00 p.m. - First reading of budget
April 26, 1976 2:00 p.m. - Second Reading of budget
ITEM 99463
On motion by Counciliiian Gardner, seconded by Councilman Holland, and
by recorded vote as follows:
Ayes: Councilmen Jolin A. Baum, Robert i]. Callis, Jr., Vice Mayor
George R. Ferrell, Ciiarles W. Gardner, John R. Griffin, Clarence
A. Holland, J. ifenry McCoy, Jr., @',Iayor @f. Curtis Payne, and Floyd
E. @Vaterfield, Jr.
Nays: None
Absent: Councilmen Robert B. Cromwell, Jr., and Patrick L. Standing
City Council voted to receive the proposed City Budget for the
fiscal year beginning July 1, 1976 and ending June 30, 1977, from
the City Manager as re(tuired by tlie Citv Cliarter.
I
ITEM #9464
Mayor Payrie advised tlie Councilmen tliat @n accordance with a request
made by Council the architects and engineers, who had submitted the
plans and specification for the Arts and Conference Center, were
present to explain and define certain aspects of the construction,
questions concerning tlie building whicli liad been raised at certain
public meetings concerning the design aild construction of the pro-
posed building.
After considerable discussion, City Council thanked the architects
and engineers for taking time to explain tlie plans and specifications.
ITEM #9465
On motion @by Councilman Gardner, seconded by Vice Mayor Ferrell,
and by acclamation, tiie nieeting adjourned at 12:00 p.m.
@@, @ r@
Richard J. 1.7 bon, city Clerk IZ. Curtis Payne,-,Ma
City of Virginia Beach,
Virginia
Special Meeting
Marcii 30, 1976