101607 BUDGET TOWN HALL
Town Hall Meeting
City Budget,
Community Choices
"Our community's budget confronts big
questions that affect all citizens. As the
city changes, its needs change. It's
important that we hear what the public
thinks about these important issues and
offer an opportunity to exchange ideas"
Mayor Meyera Oberndorf
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5
1
What is the City's budget?
~ A great many think the budget is all about real
estate taxes.
~ In reality, it is about meeting the expectations of
our citizens.
~ We see the City's budget as delivering services. . .
+a1i. +
+C +
+
+1+
Budgetary Boundaries
~ Dillon Rule - We can do what the General
Assembly allows us to do . . . and no more
~ The Budget Must Balance
~ School Budget: Revenue Sharing Formula
~ Personnel Laws
~ Council Policies & Dedications
~ State & Federal Mandates
2
Where the money comes from. . .
1$1,723 M I
Real Estate
$493.2
29%
I Fyoal
Other Taxes
262.4
15%
Permits, Fines
& Charges
$223.0
13%
Revenue Projections for the
General Fund
FY08 FY08 FY09 FY 10
Original Adjusted Projected Projected
Real Estate $ 474.9 $ 471.5 $ 485.6 $ 500.2
Personal Property 137.0 136.4 143.7
General Sales 55.7 59.3 62.2
Utility 42.2 40.0 40.5
Business License 45.0 44.4 46.9
Franchise 4.7 5.6 5.9
All other local revenue 153.1 159.1 160.6
State 90.0 90.4 90.4
Federal 25.0 25.2
Total General Fund $1,027.6 $ t,016.6
'still assessing impact of Governor's recent cuts 1- 11 million II
3
Regional Real Estate Tax Rates
2008 Real Estate Tax Rate Reduction
City Rate Since 2004
Portsmouth $1.26 19~
Norfolk $1.11 29~
Newport News $1.10 17~
Hampton $1.06 21~
Chesapeake $1.06 22~
Suffolk 94~ 14~
Virginia Beach 89~
Personal Property Tax Rates
in Hampton Roads
TAX
RATE TAXON
PER ASSESSMENT PERCENT $10,000
LOCALITY $100 BASE OF RETAIL VEHICLE
Portsmouth $5.00 Loan Value 78% $390.00
Norfolk $4.50 Loan Value 78% $351.00
Suffolk $4.25 Loan Value 78% $331.50
Hampton $4.25 Loan Value 78% $331.50
Newport News $4.25 Loan Value 78% $331.50
Chesapeake $4.00 Loan Value 78%
Virginia Beach $3.70 Loan Value 78%
Prince William County $3.70 Average Trade-In 87%
4
Where the money goes . . .
to provide services
I Both City and Schools I
I FYOS!
Financial &
Administration
4.0%
Health & Human
Services
7.9%
Museums.
Recreation. Open
Space & Libraries
4.7%
Building &
Infrastructu re
Maintenance
8.2%
Trash Collection
1.7%
Education as a % of Budaet
Virginia Beach 50%
Hampton 47%
Chesapeake 44%
Newport News 39%
Norfolk 32%
Portsmouth 31%
Suffolk 29%
Education
50.0%
1$1,723 M i
Major types of expenditures. . .
i FYOSI
Debt Sennce
9%
Operations
25%
CIP Pay-go
4%
I Both City and Schools I
Personnel
62%
5
;ir<b
,)
~" ",. ~,,"'.::;; Capital Outlay
"'-;;.;;:;.'" $8,381,901
1%
FY08 Budget - City Only
I $861M I
Management
8%
Health Insurance
9%
Contracted
Manpower
2%
Professional &
Technical
24%
Other Personnel
Costs
2%
O\oertime
2%
Part-lime
3%
by Account Structure
Protectiw
SeNces
18%
by Type of Employee
FY 2008 Budget - City Only
Debt Service
13%
Contractual
Services
14%
Capital Outlay
1%
Personnel
51%
BId Maint. & Repair
2%
Print Shop
1%
City Garage
6%
I $305M I
Efl1)loyee Training
1%
6
FY 2008 Budget - City Only
Personnel
51%
Outstanding Debt By Purpose
Projected to June 30, 2008
(Total Debt $1.215 Billion)
Stonn Water
1.7%
General
Government
57.5%
Schools
24.2%
I $110M I
Growth in Services
Annual Growth Rates 2000-2005
Population
0.5%
Medicaid Recipients
Food Stamp Cases
Fire & Emergency Calls
Prisoners
Foster Care Cases
Number of Vehicles
Police Officers & Fire Fighters
Special Education Students
Households
Police Calls
Children Receiving Child Care
6.4%
5.8%
5.2%
4.8%
3.0%
2.2%
1.9%
1.4%
0.9%
0.8%
0.8%
7
Under Funded State Programs
$341.7
20%
Local Choice vs. "Must Fund"
creates
Unfunded Mandates
There are $ 464.6 million in mandates
in the budget, however only $123
million in revenue to cover them
City Treasurer's Office
Courts
Commonwealth Attorney
State Health Department
Human Services
State Recycling Requirements
Storm Water Management
Requirements
Sheriff & Jail Operations
Schools
State Funding Shortfall
= 40~ on Real
Estate Tax Rate
$ .9
$ .9
$ 1.1
$ 2.7
$ 22.5
$ 5.6
$ 14.0
10.1
161.4
So what does it all mean?
.,
Jl
~
_~.. Projected FY 09 Revenues:
General Fund only
Less:
Schools portion of the revenue sharing formula
City debt service
All other Council dedicated revenues
Tax Relief for the Elderly
City Compensation (includes previous year rollover)
GASB 45 requirement: health care liability
Amount available for departments
Current year's budget for departments (including inflation)
Potential impact to services
Increased CIP pay-as-you-go
Potential impact to services
$ 1,046.0 million
395.7 million
44.5 million
61.3 million
15.0 million
11.5 million
7.7 million
$ 510.3 million
$ 528.1 million
($ 17.8 million)
8
Community Demographic Trends
2000 to 2006
~ Household income is $61,333 in 2006, up from $48,705 in 2000.
~ Families in poverty remains flat from 5.1 % in 2000 to 5.4% in 2006.
. Elderly in poverty has declined from 4.7% to 2.6%.
· Children in poverty increased from 8.6% to 10%.
~ There are more women than men (51.1 % vs 48.9%).
~ Elderly as a percentage of population is up from 8.4% in 2000 to 9.8%.
~ Below age 18 population has dropped from 27.5% to 26.2%.
~ Percent of the population who drives alone remains virtually constant from
82% to 81.8%.
~ High School graduation has improved from 64.9% to 82.7%.
~ 31.1% ofthe population has a college education vs. 28.1% in 2000.
~ Crimes per 1000 population has decreased from 41.8 to 33.6
l Community Economic Trends.
';1'
.....':;i-4'
);- Slowdown in Housing Market
· Credit market is in flux
· Foreclosures are up 25% from last year
· ARMs are resetting to higher percentages
· Residential building permits are down
);- Vehicle registrations are flat
);- Inflation has increased to 5%
);- Unemployment remains lower than state & national levels
);- Energy costs are increasing
);- Tourism & Military stabilizing factors
);- Discretionary spending uncertainty
9
Initial Budget Initiatives
for the Next Budget Year
~ Review of all City vacancies
~ "Zero-basing" all operating accounts
~ Departmental targets set at 94% of need
~ Simplifying accounting structure
~ Expanding use of performance monitoring
to ensure results
Questions for Tonight. . .
1. The budget is a reflection of the community's
needs and choices about services. . .
a. In our community, are there services that can be
reduced or should be added?
b. What changes and/or needs within the community
should we be anticipating?
2. What alternatives to the real estate tax might we
consider?
3. What other budget initiatives can you
recommend?
'10
Town Meeting: City Budget, Community Choices
Convention Center, Suite 4
Tuesday, October 16, 7:15 - 9:00 p.m.
AGENDA
7:15 - 7:30 p.m.
Informal Meet & Greet
7:30 p.m.
Open and Welcome
Meyera E. Oberndorf, Mayor
7:40 - 8:00 p.m.
Briefing
Dave Hansen, Chief of Finance and Technology
8:00 - 8:50 p.m.
Facilitated Table Discussion
Questions:
1a. In our community, are there services that can be
reduced or should be added?
lb. What changes and/or needs within the community
should we be anticipating?
2. What alternatives to the real estate tax might we
consider?
3. What other budget initiatives can you recommend?
8:50 - 9:00 p.m.
Open-Ended Discussion
9:00 p.m.
Closing