03302010 DEDICATION PRESENTATIONCity Of Virginia Beach
Department of Management Services
DEDI
Presented by David A. Bradley
March 30, 2010
SUMMARY OF MAJOR CITY COUNCIL DEDICATFONS
CITY/SCHOOL REVENUE SHARING FORMULA - $365.8M
Purpose:
Provides local support for education including debt service and pay-as-
you-gofinancing.
Major Dedicated Source:
51.3% of real estate, personal property, sales, utility,
telecommunications/cellular, business license, and cable franchise is
dedicated to Schools (before proposed tax increases).
FY 2010-11 amount of $365.8 million is less than what was
transferred in FY 2006-07.
3.6% less than FY 2009-10 amount of $379.4 million and 7.2% less
than FY 2008-09.
8.8 million of reversion funds requested in Schools FY 2010-11
budget proposal.
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PARKS AND RECREATION/RECREATION CENTERS - $17.7M
Purpose:
Provides staffing, operations and maintenance, and renewal and
replacement of 6 recreation centers.
Maior Dedicated Source:
3.48 cents of real estate tax dedication.
June 30.2009 Fund Balance -$5.1 million.
Projection of Fund Balance and .3 tenths of proposed real estate
tax increase used to renovate Bow Creek and Kempsville
Recreation Centers.
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OUTDOOR INITIATIVE - $2.4M
Purpose:
Provides fundingto Parks and Recreation CIP.
Maior Dedicated Source:
.47 cents of rea I estate tax dedication.
No Fund Balance
AI I ded icated to Pa rks a nd Recreation CI P projects I i ke 4-074 City
Bikeways and Trails and 4-303 Greenways, Scenic Waterways
and Natural Areas.
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OPEN SPACE - $5.3M
Purpose:
Provides fundingfor acquisition and maintenance of open space.
Major Dedicated Source:
.44% of the 5.5% rests u ra nt tax.
FY 2010-110perating Budget proposes a two year moratorium of
open space acquisition funding.
- $2.5 million for debt service.
- $1.2 million for open space development and maintenance.
- $825,000 for park infrastructure repairs.
- $616,000 for various site acquisitions.
- $149,000 to general fund for issues such as landscape
maintenance of new roadways.
June 30, 2009 Fund Balance - $5 million.
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TOURISM GROWTH INVESTMENT FUND (TGIF) - $13.8M
Purpose:
Provides operation and maintenance costs for the resort area:
beach events such as holiday lights and the Neptune Festival;
resort area trolleys; and, provides pay-as-you-go and debt service
costs fo r reso rt a rea projects.
Major Dedicated Sources:
.5% of the 5.5% rests u ra nt tax.
2.5% of the 8% hotel tax.
2% of the 10% amusement tax (or 1% of the 5%).
June 30, 2009 Fund Balance -$1.8 million.
(used $1 million to balance FY 10 budget). In the long run, may
have capacity to address future resort area projects.
MAJOR PROJECTS - $21M
Purpose:
Providesfundingstreamto pay debt service for the Convention
Center, Sandler Center, Virginia Aquarium Parking, and Phase II
of the Virginia Aquarium.
Maior Dedicated Sources:
.56% of the 5.5 cents rests u ra nt tax.
2.5% of the 8% hotel tax.
8% of the 10% amusement tax (or 4% of the 5%).
5 cents of the 65 cents cigarette tax.
June 30.2009 Fund Balance - $14.5 million.
With a projection of minimal fund balance by FY 2012-13 (used
$1 million to balance FY 10 budget). $
TOURISM ADVERTISING PROGRAM (TAP) - $9.1M
Purpose:
ProvidesfundingforadvertisingVirginia Beach ass tourist
destination and operation of the visitor center.
Maior Dedicated Sources:
.5% of 5.5% rests u ra nt tax.
1% of 8% ded icated hotel tax.
June 30, 2009 Fund Balance - $185,000.
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AGRICULTURE RESERVE PROGRAM - $4.6M
Purpose:
Acquires development rights to farmland.
Maior Dedicated Source:
.9 of 1 ce nt of the rea I estate tax.
June 30.2009 Fund Balance -$15 million .
(used $4.2 million in the FY 2009-10 Operating Budget and CIP).
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SANDBRIDGE TIF AND SSD - $12.9 M
Purpose:
Beach replen ish ment at Sa nd bridge.
Maior Dedicated Sources:
TI Fs - I ncrementa I rea I estate tax revenue.
-SSD -
- 6 cents add itiona I rea I estate tax revenue.
- 2.5% in additional hotel tax.
- Other Sa nd bridge revenue.
Combined June 30, 2009 Fund Balance - $11.1 million .
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TOWN CENTER TIF, SSD, and LYNNHAVEN -MALL-Tlf - $10.4M
Purpose:
Central Business District TIF -Debt associated with public parking
facilities.
Town CenterSSD - 0 & M for parkingfacilities,sidewalks, streets,
etc.
LynnhavenTlF-Transit in LynnhavenMallareaandobligationtothe
Developer.
Major Dedicated Sources:
TIFs -Incremental real estate tax revenue.
Town Center SSD - 45 cents additional real estate tax rate.
Combined June 30, 2009 Fund Balance - $2.8 million.
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ECONOMIC DEVELOPMENT INVESTMENT PROGRAM - $2.3M
Purpose:
Attract additional economic development to the City.
Major Dedicated Source:
12 cents of the 65 cents cigarette tax (including 2 cents
proposed in FY 2010-11 budget).
Funds transferred to Economic Development Authority.
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