04262011 QUALITY ORGANIZATION BUDGET4/25/2011
Budget Workshop
FY 2011-12
April 26, 2011
Quality Organization
Quality Organization
FY 2010 FY 2010-11 fY 2011-12
Quality Organization Actual Adjusted Proposed Change
Budgeted Expenditures* $ 71,597,950 $ 73,783,961 $ 75,472,522 2.29%
FTEs* 462.51 428.29 430.94 0.62%
* Excludes the City Treasurer and Commis sioner of the Revenue, who presented as Constitutional Officers April 5th.
- Business Area includes:
City Attorney, City Auditor, City Clerk, City Manager, City
Real Estate Assessor, City Treasurer*, Commissioner of the
Revenue*, Communications and Information Technology,
finance, General Registrar, Human Resources, Management
Services, Municipal Council and Non-Departmental
Departments
- City Council Goals:
Create a financially sustainable City providing excellent
services
- Proposed Fee/Taxlncreases:
Real Estate Tax from 89C to 91C per $100 of assessed value
Personal Property Tax from $3.70 to $3.90 per $100 of
assessed value
New fees per request: Check Reissuance $15, Check Pick-up
$15, IR51099 Reissuance $15, and Reissuance Title for
Surplus Vehicles $50
4.3Y of
Total
Operating
R~~Aoc*
4/25/2011
0
~ Expenditures
Municipal C
0.796
Quality Organization
City AuditorCity Clerk
City Attorney 0\8% ~0.7% City Manager
4.7% ~ ~ 3.39'0
RealEState Assessor
3.80
Services Human Res
1.996 5.59'0
(Revenues
Quality Organization
Fees & Charges for Dedicated Funding State
5er~
Int
local
sfers)
i%
dance
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a
Finance
6.10
al Registrar
1.596
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4/25/2011
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Communications &
Information Technology
April 26, 2011
Gwen Cowart
5
Communications and Information Technology
- ~®~®
Applications Support $6,418,202 $6,902,039 48.0 $7,028,510 49.0 $126,471
Systems Support $7,616,286 $8,014,273 43.0 $8,040,953 44.0 $26,680
Telecommunications $3,090,745 $3,438,055 18.0 $3,274,560 18.0 ($163,495)
Geospatiallnformation $1,476,812 $1,710,167 18.0 $1,738,091 18.0 $27,924
Services
Multimedia Services $1,433,236 $1,427,413 18.0 $1,427,217 17.5 ($196)
Business Center $630,873 $649,753 10.0 $643,278 10.0 ($6,475)
53'0
1~ 9% 1% ^GeneralFund 4%
^ Personnel
$~ ~ Print Shop ISF
^ Operations
_ ^Capital Projects 509'0
^Capital
ISF
^Telecomm ISF ^ Reserves
~ , -. ^ Subscriptions ISF
6
Communications and Information Technology
Technology Project
Management Office
InfoSec
Support Center
Technology Services
Mail Services
City/Schools Printing
CIP ISF
Subscriptions
Reserves for
Contingencies
$593,664 $686,921 6.0
$381,404 $402,080 3.0
$995,012 $479,851 2.5
$0 $0 -
$202,868 $204,432 4.0
$2,744,610 $2,439,119 12.0
$1,618,196 $3,076,463 -
- $940,892
$0 - ($686,921)
Total
$0 - ;^-02,080)
$0 - (5x79,851)
$1,797,219 15.0 $1,797,219
$204,169 4.0 ($263)
$2,051,822 6.0 ;5387,;?97!
$202,170 2.0 $202,170
$3,509,495 - $433,032
$943,723 $2,831
$27,201,908 $30,371,458 182.5 $30,861,207 183.5 $489,749
~~~
Communications and Information Technology
Eliminate Printing Services' In-house Offset Printing -$385,112 -6.0
Add Staff Capacity to address Capital Projects
Operating Budget $483,758 5.0
Capital Improvement Budget $202,170 2.0
Sustain Computer Replacement Program at FY 2011 Level $708,184 -
Three Divisions Merged into new Technology Services - -
Division
Reduce Communications and Technology Lifecycle
Maintenance -$372,718 -
Program Reduction Criteria:
- Mitigate impact on end-users and customers
- Mitigate impact on core technology operations and maintenance
- Mitigate impact on existing infrastructure and applications
- Reduce service costs through service efficiencies
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4/25/2011
Communications and Information Technology
FY12 Department Initiative Highlights
FY 2012 CIP Funding to Launch Integrated Public Safety Projects
r Police Records Management
- CAD Replacement
~ VBAIert Replacement
i ALI DB / NG 9-1-1 Analysis
- Initiate transition to Voice Over IP (VoIP)
r' Geospatial Information Services (GIS) On-line mapping enhancements
r' Intranet Redesign and Enhancements
y Oracle Financials/HR/Payroll Release Upgrade
~ Begin Windows 7 OS Deployment and MS Office 2010 Deployment
9
Finance
April 26, 2011
Patricia Phillips
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4/25/2011
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Finance Department
FY 2011-12 Budget
$4,632,305
28.5%
$111,100
0.7
^ Payroll, Purchasing, Comptroller, LVR, Admin
^Transportation Projects
^ Risk Management
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0
4/25/2011
Finance Department Trends
New Types of Bond Issues with greater complexity
Recovery Zone (RZ)
r Build America Bonds (BAB)
Qualified School Construction Bonds (QSCB)
- Management of SPSA billing and contractual issues
Virginia Retirement System modernization requires additional payroll
effort, technology changes, testing and training
ARRA and Grants requirements are more complex, greater volume, and
require higher levels of approvals and authorizations for
reimbursements
y Faster rates of accounting changes, GASB and GFOA requirements,
higher public expectations for transparency, reporting and
accountability
Minority Business Program and VDOT Transportation Projects with Civil
Rights Component
13
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Finance Department Highlights
r Roadway Initiatives and Urban Construction Program Civil Rights Compliance -
two additional FTEs
Minority Business program requirements continue to increase -more policy
review, data collection, vendor monitoring and outreach efforts using
Purchasing staff
v Risk Management cash transfer will fund current liability at 36% from 26%- 70-
100% is recommended for AAA rated municipalities
Focus on establishing policies and procedures to provide internal controls
Vendor file maintenance is needed to prevent duplicates and errors; to meet
IRS requirements including foreign vendor expenditure reporting; to meet 3%
withholdings; and to avoid increased IRS penalties
Testing design, plan and execution for upgrades for various software including
CAFR software, Risk Management Software, InSITE, and other technology
initiatives. Unfunded technology efforts result in more manual processes,
longer processing time, less data and decreased capacity in other areas
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Human Resources
April 26, 2011
Regina Hilliard
15
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Human Resources
Director's Office $858,151 9.0 $714,097 8.0 $-144,054
Employee Relations $399,743 5.0 $399,742 5.0 $-1
Staffing & Compensation $1,174,082 16.0 $1,136,975 15.0 $-37,107
Services
Learning & Development $568,493 5.0 $561,811 5.0 $-6,682
HR Police Services $90,258 1.0 $90,258 1.0 $0
Member 0 0.0 $106,554 1.0 $106,554
Communications
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Human Rights
Commission
Occupational Safety
Occupational Health
Total
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Human Resources
0 0.0 $65,896 1.0 $65,7
$247,267 3.0 $247,267 3.0
$865,730 8.0 $829,928 8.0 $-35,7
$4,203,724 47.0 $4,152,528 47.0 $-51,:
General Fund
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^ Personnel ^ Operations
v
Human Resources
City Positions per each Human Resource Position
lso
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130
120
110
100
2005 2006 2007 2008 2009 2010 2011 2012
(adj) (prof)
Fiscal Years
Note:
The department lost 6.13 positions in FY 2011 resulting in a ratio of 145 City
employees per Human Resource staff.
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4/25/2011
Human Resources
Non-Departmental
. ~- .. ...
Tuition Assistance $436,968 $0
Class Act Awards $15,354 $0
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Human Resources
FY 2011-12 Trends & Highlights
- Efficiency Enhancements
Driver Alert Program
Consolidation of Workforce Planning & Development and
EEO/Diversity & Inclusion Plans
Review of Testing & Promotional Processes
Increased Focus and Resources on Federally Mandated
Programs and Services
New Employee Development Tools
Performance Management
360° Assessment
Mid-Management Development Program
Coaching for Commitment Course
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City Attorney
April 26, 2011
Mark Stiles
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City Attorney
OPersonnel ^Operations
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4/25/201
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Legal Services 3,542,705 39.96 3,512,286 39.61 -30,419
Total 3,542,705 39.96 3,512,286 39.61 -30,419
4.1%
4/25/201:
City Attorney
Proposed budget eliminates one vacant part-time paralegal
position but retains funds from position to supplement
recruiting and retention opportunities for existing positions.
Additional reductions to operations budget.
- No reduction in services.
2.5 attorneys and one support staff paid by and assigned to
Schools pursuant to Cooperative Agreement ($350,625).
Widening gap illustrated by market salary survey poses
challenges for attorney retention and recruitment.
23
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City Attorney
96%
®In-House Cost Per Hour
®Average Outside Counsel Cost Per Hour
(Effective Cost Per Hour for all Legal Services
24
12
FV OS FY09 FY10
FV08 FY09 FY10
Percentage of In-House Legal Services
~~~~
City Attorney
FY 2011-12 Trends & Highlights
- Ongoing legal work in support of BRAC Program.
- Legal support and structure for economic development initiatives
including development of the Dome site and construction of a convention
center hotel.
Implementation of Strategic Growth Area plans, including Oceanfront
form-based zoning ordinance.
- Significant increase in real estate activity in connection with planned and
ongoing road projects.
Decennial redistricting and DOJ Voting Rights Act preclearance
submission.
Legal support for implementation of Neighborhood Dredging Program.
- Transfer of Cape Henry Beach litigation to in-house attorneys.
- FOIA compliance -increasing service demands.
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City Auditor
April 26, 2011
On behalf of Lyndon Remias:
Chris Ford
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4/25/2011
Office of the City Auditor
Office of the City $574,469 6.0 $571,714 6.0 ($Z,755j
Auditor
Total $574,469 6.0 $571,714 6.0
Funding for Independent Financial Services is not included in Office of the City Auditor's Budget. It is funded
through anon-departmental budget unit.
Operations
4.2%
^ Personnel ^ Operations z~
Office of the City Auditor
Continue to promote accountability and integrity in City operations by
providing quality audit services.
Continue management and oversight of the City's Fraud, Waste and Abuse
Prevention and Reporting Program, including the Fraud Hotline, available to
citizens and employees as mandated by the State.
~ Continue administration and oversight of the mandated external audit of the
City's Annual Financial Report (CAFR) and Single Audit Requirements for
Federal funding.
Any reduction on funding would have severe impact on our ability to serve
City Council, the Audit Committee, City leadership and Citizens.
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Office of the City Auditor
FY 2011-12 Trends & Highlights
FY2010 -Completed 11 attestation engagements and performance
audits resulting in improved financial and management controls,
processes, contract performance, system efficiency and quality of
services.
Generated approximately $1,015,779 in actual savings.
- Public is demanding that there is accountability and oversight over the
use of taxpayer funds. We fill that role.
Investigated 39 allegations of theft, misuse of City resources, waste and
abuse.
Worked with Human Resources and City Attorney's Office to take
disciplinary action resulting in four terminations, four s
uspensions, one written reprimand and eight verbal or written counsel.
- Helped train over 2,159 employees in City ethics.
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Municipal Council and
City Clerk
April 26, 2011
Ruth Hodges Fraser
30
15
4/25/2011
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Municipal Council
lel $344,515 11.0 $344,515 11.0 0
ng $208,833 $198,156 , 7)
$553,348 11.0 $542,671 11.0 ($10,677)
FY 2011-12 Proposed Operating Budget
Revenues Expenditures
^ Personnel ^ Operating
31
.]
City Clerk
Personnel $474,596 6.0 $474,590 6.0
Operating $65,184 $64,621 S5
Total $539,780 6.0 $539,211 6.0 °$5
FY 2011-12 Proposed Operating Budget
Revenues Expenditures
12.0%
~~
:~ -
^Personnel ^Operating
32
16
4/25/201:
City Real Estate Assessor
April 26, 2011
Jerry Banagan
33
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Real Estate Assessor
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^6eneral Fund
^Personnel pOperations
34
0
17
Real Estate Assessor $2,795,443 34.0 $2,838,546 34.0 $43,103
FY 2011-12 Budget 8 3/
4/25/2011
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Real Estate Assessor
FY 2011-12 Trends & Highlights
- Increased applicants for Senior/Disabled Tax Relief Program
- Applicants for new Disabled Veteran Exemption
- Increased mailings add to printing and postage costs
- Increased software cost to Marshall Swift Valuation Service
- Increased cost of continuing education for appraisal staff
35
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General Registrar
April 26, 2011
Pat Harrington
36
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4/25/2011
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General Registrar
^ Personnel ^ Operations ^ City General Fund ^ State
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General Registrar
Possible new precincts due to redistricting
- Mailing of new voter cards by 2011
- Both of the above items are mandated by the State
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Personnel $734,727 12.03 $729,747 12.03 -$4,980
Operations $387,038 - $377,179 - -$9,859
Total $1,121,765 12.03 $1,106,926 12.03 -$14,839
FY 2011-12Expenditures FY 2011-12 Revenue
4/25/2011
V~
General Registrar
FY 2011-12 Trends & Highlights
- Electronic Pollbooks
- Redistricting
- Mailing of new voter cards without social by December 2011
34
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Management Services
April 26, 2011
Catheryn R. Whitesell
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4/25/2011
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Management Services
..
Management and $1,448,577 15.00 $1,461,870 15.00 $13,293
Budget Analysis
Total $1,448,577 15.00 $1,461,870 15.00 $13,293
9.79'0
_~~
~~ ~•.
90.3%
^Personnel ^Operations ^GeneralFund
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Management Services
FY 2011-12 Trends & Highlights
The City's FY 2010-11 Operating Budget and CIP received the GFOA
Distinguished Budget Presentation Award.
~ The recent transfer of Facilities Management from Management Services to
Pubic Works resulted in the loss of three FTEs.
The department has lost four FTEs since 2008 while retaining the workload, a
decrease of 21%.
- Management Services performed two comprehensive program evaluations and
initiated three performance measurement pilot projects with the Organization
and Development Office.
r Management Services will continue to:
Work with departments to improve efficiencies
Monitor General Assembly legislation which impacts City and School
finances.
Assist departments with grants and other competitively attained funds.
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City Manager
April 26, 2011
James K. Spore
43
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Jlanager's Office $1,674,533 12.00 $1,681,021 12.00 $6,488
nization Development $326,388 3.00 $326,728 3.00 $340
__ of Volunteer $120,817 1.50 $117,817 1.50 ($3,400
urces
a & Communications $365,919 4.00 $360,559 4.00 _ ,._ .
P
$2,487,657 20.50 $2,486,125 20.50 ^;$1,532)
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^ General Fund ^ Personnel ^ Operations as
4/25/2011
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City Manager's Office
4/25/2011
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City Manager's Office
FY 2011-12 Trends & Highlights
- 18,000 volunteers placed at an estimated cost savings and cost avoidance of
$19,028,644 or 3.4 cents on the real estate tax rate.
- 36% reduction in City Manager's Office staff in the last five years.
- Coordination of, and response to, citizen concerns and correspondence for Mayor,
City Council and City Manager's Office.
Media and Communications Group restructured and decentralized to align the City
with the shift in how citizens want to receive information.
- Coordination of City's legislative interest in over 3,000 items.
- Developing and testing a new system for measuring program outcomes and results.
- Supporting Envision Virginia Beach 2040 Committee.
- Developing new Strategic Plan to address City Council's vision and goals.
45
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Non-Departmental
April 26, 2011
Catheryn R. Whitesell
46
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Non-Departmental
Revenues
Dedicated Taxes
4.9% Fund Balance
Fees Lynnhaven Mall TIF
0.5% 0.9%
as
4/25/2011
24
4/25/2011
s
Non-Departmental
Expenditures Lynnhaven Mall TIF
5.9% Community Org.
Grants Employee Special
Leases 1.4% Benefits
Independent Financial 5.2% 16.0%
Services
0.5%
Regional Part
6.1%
Revenue
Reimbursements
49.990
Benefits
ministrat
2.0%
Vehicle Replacements
13.0%
49
Non-Departmental
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Regional Participation Examples Community Organization Grants (COG)
Eastern Virginia Medical School Examples of On-Going Grants
Hampton Roads Economic Development .Beach Health Clinic
Alliance ~ Foodbank of Southeastern Virginia
Hampton Roads Planning District ~ Endependence Center, Inc.
Commission
Hampton Roads Military and Federal
Facility Alliance
Non-Departmental Program Increased $1,595,589:
COG/Regional Participation Grant Funding increased to $1 per capita
New employee special benefit cost shifted from State to City --line of duty
payments for public safety personnel $800,000
Health insurance for retires increased by $360,000
Tax relief decreased by $670,191
Vehicle replacements increased by $1 million to address some of the backlog
In total, the final Non-Departmental budget increased 5.3%. so
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4/25/2011
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Non-Departmental
FY 2011-12 Trends & Highlights
Maintains City commitment to provide the employer's share of health
and dental for eligible retirees
- Takes over the cost of line of duty payments from the State
- Provides real estate tax relief to qualified elderly and disabled citizens
- Vehicle replacements funded at $4.1 million; $1 million additional than
last year but $1 million less than normal funding levels.
- Community Organization Grants funding is being restored to $1 per
capita
r Regional Participation funding held to FY 2011 levels
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