OCTOBER 20, 2009 WORKSHOP MINUTESCITY OF 'VIRGINIA BEACH
"COMMUNITY FOR A LIFETIME"
CITY COUNCIL
lL1YOR IVlLLIA.ti! D. SESSOAAS, JR., At-Large
b%CE,IJAYOR LOUIS R. JONES, Baysrde -District d
GLENN R. DAB%S Rose Hn!! - District 3
1J7LLl.9M R DeSTEPH, .9t-Large
NARRY E. DlEZEL, Ken+psville -District ?
ROBERT.~t4. DYER„ Cnuerville -District l
BARBARA .N. H£.•VLEY, Priacess .gene -District 7
JOHN E UyRIN, Bench -District h
RON A. V/LLANUEVA, Af-Lnrgt
ROSEMARY 1VlLSON, At-Large
JAMES L. WOOD, Lw~nGnven -District S
CITY COUNCIL APPOINTEES
CITYMANAGER -JAMES K. SPORE
CITYATTORNEY- MARK D, STILES
CITYASSESSOR - JERALD BANAGAN
CITYAUDITOR - LYNDON S. REM/AS
CITY CLERK - RUTH HODGES FRASER, MMC
CIT}'HALL BUILDING
140! COURTHOUSE DRIVE
~%RG/N/A BEACH, VIRGIN/A 13456-8005
PHONE.•(757) 385-4303
FAX (757) 385-566 y
E-M.9/L: cNcnc!@rbgov.com
CITY COUNCIL WORKSHOP AGENDA
20 OCTOBER 2009
I. CITY MANAGER'S BRIEFINGS -Conference Room -
A. HAMPTON ROADS TRANSPORTATION PLANNING ORGANIZATION
1. HRTPO Project Prioritization Process and Schedule
Dwight Farmer, Executive Director
2. HRTPO Video on "Carmageddon"
Robert Matthias, Assistant to the City Manager
B. NOISE ORDINANCE REVIEW
Chris Boynton, Deputy City Attorney
C. PLANNING ITEMS PENDING
Jack Whitney, Director -Planning
3:00 PM
D. REGIONAL ECONOMY and IMPACT ON COMMUNITY
(Requested by Councilman Bob Dyer)
.ter--~
~.
__ - i s
°r e
s
t OF OUR N~~~ON
MINUTES
VIRGINIA BEACH CITY COUNCIL
Virginia Beach, Virginia
October 20, 2009
Mayor William D. Sessoms, Jr., called to order the CITY COUNCIL WORKSHOP in the City Council
Conference Room, Tuesday, October 20, 2009 at 3:00 P.M.
Council Members Present:
Rita Sweet Bellitto, ,William R. "Bill" DeSteph, Harry E. Diezel,
Robert M. Dyer, Barbara M. Henley, Vice Mayor Louis R. Jones,
Mayor William D. Sessoms, Jr., John E. Uhrin, and James L. Wood
Council Members Absent:
Glenn R. Davis and Rosemary Wilson
October 20, 2009
CITY COUNCIL'SI3RIEFING
HAMPTON ROADS TRANSPORTATION PLANNING ORGANIZATION
Employers' Support of the National Guard and Reserves
HRTPO Video on "Carmageddon"
3:00 P.M.
Dwight Farmer, Executive Director, HRTPO, gave an introduction to a video regarding the
closing of the westbound lanes of the Hampton Roads Bridge Tunnel on July 2, 2009, which
disabled that tube all day. This became known as "Carmageddon". A perfect storm of other
traffic mishaps caused a virtual standstill of traffic in and out of the Southside.
October 20, 2009
HAMPTON ROADS TRANSPORTATION PLANNING ORGANIZATION
Project Prioritization Process and Schedule
3:12 P.M.
Mr. Farmer continued with a PowerPoint presentation on Program Priorities (appended) setting
out the HRPDC's goals for transportation in the area. The Committee was made up of Elected
Officials, the Technical Advisory Group which has people from the thirteen (13) regional
members, members from City Manager's offices, and a host of State representatives to prioritize
transportation needs including highways, bridges and tunnels, transit projects, System
Management/Transportation Demand Manager and Operational Improvement Projects,
intermodal, bicycle and pedestrian projects.
In reply to Councilman Wood, Mr. Farmer noted every project will have a scoring component
because there is only so much money. Even though it is needed, a project might not have full
funding and would reflect a low probability of having a true funding source.
Councilman Villanueva noted City Council has been waiting since 2002 for some sort of funding
mechanism and he feels there has been a lot of lost opportunity. Mr. Farmer is excited about
getting this agreed to and then see where the cards fall.
In reply to Councilman DeSteph, Mr. Farmer advised the state collects $875-Million in gas tax
revenue with smaller amounts from car titling tax and sales tax, but several Hundred Million go
to maintenance. $3-Billion is the gross number.
Councilman Villanueva pointed out that the VDOT bureaucracy is part of the problem that needs
to be dealt with as well as the funding issue.
Mr. Farmer agreed. He complimented the City for their ability to take projects and totally
manage them.
In reply to the Mayor, Mr. Farmer said the State is borrowing money to match federal
construction dollars and this ability may have been maxed out.
The Mayor thanked Mr. Farmer for coming with this Update and advised him to keep on pushing
the State.
October 20, 2009
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OFFICE OF THE CITY MANAGER MUNICIPAL CENTER
(757) 385-4242 BUILDING 1, ROOM 234
FAX (757) 427-5626 2401 COURTHOUSE DRIVE
VIRGINIA BEACH, VA 23456-9001
October 20, 2009
The Honorable William D. Sessoms, Jr.
Members of City Council
Subject: Jim Regimbal Presentation at the VML Conference in Roanoke-October 19, 2009
Dear Mayor and Council Members:
Please find attached a presentation given by Jim Regimbal at the VML Conference in Roanoke
on Monday, October 19t". Jim, who is a very well respected expert on State budget affairs,
paints a very dark picture for the Commonwealth. Among other negative news, he opines that
the State will have a $3 billion shortfall over the next biennium just to keep funding for existing
programs at the current level.
I think it is also very interesting that his research indicates that the revenue provided by the 2004
tax increase has been more than offset by tax policy changes by the Commonwealth which has
actually reduced the overall tax burden on the Virginia residents. His findings on transportation
funding are also very troubling in that it is likely that our street maintenance payments may be
reduced.
I hope this information is useful. Please call if I can provide anything further.
With Pride in Our City,
ame K. Spore
ity anager
JKS/RRM/amg
Attachment
The Potential Impacts of a
Shrinking State Budget
on Virginia's Localities
James J. Regimbal Jr.
Virginia Municipal League
October 19, 2009
VML/VACO
2009 Local Fiscal Condition Survey
• VML/VACO conducted a local fiscal condition
survey of Virginia localities in late summer.
Those localities at least partially responding
included:
- 38 of 41 Cities and Towns of West Point and
Colonial Beach
- 92 of 95 Counties
2
2009 Survey Revealed a Deteriorating
Local Financial Condition
zv~ec~sfr~ood4~-s~,sa7~'X';~t~t , 2~°r° 2s.o°i° ~~s.~io
iesl~xi~r~+ireedsiFxl~~fD'laasoarpfaF'tar t.~i° 2z3°r° 76.2°i°
:> Biggest local concerns for FY 2011:
- Expiration of the federal stimulus and its impact on the state's
ability to maintain funding for localities and school districts.
- Continued erosion of real and personal property values that will
place significant upward pressure on tax rates.
Many localities have reserves. 74 of 1061ocalities responding
reported reserves greater than 10 percent of FY 2010 spending.
3
Local Revenues Are Declining
(Number of Localities Responding)
Real Property Assessments (106)
Personal Property Assessments (92)
2008 Growth 2009 Growth
6.6% 1.6%
2.5% -3.7%
FY 09 FY 10
Budgeted FY 09 Actual Budgeted
Growth Growth Growth
:[Zeal Property Tax Revenues (115) N/A 4.5% 0.5%
General Fund Revenues (104) 2.2% 1.1% -2.9%
4
2
vi>-~va Local General ~md Revenue
Annual (~vwth Rat+e*
lz~r
la~i
~
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2%
,
OP/o ~
-2%
-~/
199D 1431 1992 1943 1991 1995 19A5 1997 1996 1999 200D 2001 3XP 2003 20D1 2005 3A6 2007 2006 31® 2010
Fs®I Yea
' APA Comparative Report FY 1990 to FY 2008; VhIINACO survey results extrapolated for FY 2009 and FY 2010 5
Bt,lic~l:t E3alancirag 9tr-abeyes in FY 10 ley C~leai~est Irrt~ct
~"~.~
Oelayorcaneila6rnofrapitel oUla~r
Across tl-le band semi ae a.t
Lle1E IE9ef\~S Q l.fYlESgt'bBd I~elaloes
F~9O1T7e1 Ic7yCR5
Hrirgfreesi>e
~aN1~ f6d.G4On5l~feE~
Q.ts inotllaseruoes aid progats
Fi3dtaed aorfii 1x6 ors do au da/6.r2i
~L721'EF~IIICae ber>efi15
F3~'1e~cU~fiedevt
I~dned ecir~6' m fil2t~i rrressed OosLS
I~plaoe IOCc'~ g9'IS'c1 fir1c15lni1Flspeoal flr'Ki5
Q.Is inlvrt3Ysodal seruoes
QLS In17117iCS-3(Ely9enA0ES
1'L7EEi9EL8ECf f~QHI 71er11.5
Eayre6r~t iroer6~es
YveElse pri~~ crvoorfiadi rg ott
~~ paean plans beiefits
se rnd
~ niv
oar #wa,c~mr
~
n za 1s 5~
25 10 13 48
20 9 7 36
11 11 7 29
5 13 8 ~
6 8 10 24
6 8 8 22
4 5 9 18
1 6 9 16
4 4 5 13
1 3 8 12
7 4 1 12
4 4 O 8
2 2 O 4
O O 3 3
O 2 1 3
1 1 1 3
1 1 O 2
0 0 0 0
0 0 0 0
O O O O
FI.RLre Sper'lCfir~g Pf~.tlres
Plarber- of L~ocatities
Education 48
Capital outlay/ ire 40
Plersonrtel oaYpensafion 38
P~rsorr~el benefids 33
Rblic sadely 26
Deht servicir~ 19
CSA 11
lhfuxled rr~anciabes 9
Vf"iS 6
Tr~nsportadon 3
~~ ~
s
4
Education Funding is Greatest Concern
• Commonwealth has reduced FY10 K-12 funding by almost $800 million
GF -partially offset by federal stimulus funding.
• Expect additional K-12 cuts.
- K-12 is 35 percent of GF and 70 percent of local aid.
• State and local revenue problems will be compounded when federal K-12
stimulus funding ends -beginning in FY 11.
• Localities are holding Virginia's public education system together to meet
SOA and SOL standards by spending $3 billion more per year than
required to match state $.
- In total, localities spend 82 percent more than required by state.
- This excess pays for 22 percent of all K-12 spending.
• Without state and/or local tax increases, major policy changes will be
required to align K-12 spending levels with revenues, even with only
minimal re-benchmarking costs ($138 mil. for biennium).
- Restoring "support cost" funding would require an additional $754
million in the next biennium. 9
State Budget Summary
(Setting the Stage for January)
• On August 19, Governor announced a $300 mil. FY 09 GF revenue shortfall
and an additional $1.2 billion GF revenue shortfall for FY 10.
• On September 8, Governor announced $1.35 bil. budget reduction plan.
Only for FY 10 -does not solve 2010-12 budget problems.
• Expect an even tougher 2010-12 budget due to a weakened state balance
sheet (e.g. Rainy Day fund drawdown), lack of new debt capacity, expiring
federal stimulus $, and a weak economic recovery.
• Medicaid and other HHS cost pressures will continue, putting additional
strain on the 2010-12 state budget. Medicaid growth could consume all
additiona12010-12 biennium GF revenues.
• State aid to localities will continue to be reduced in the 2010-12 biennium.
• Falling real estate and car values, sales taxes, business taxes will make it
difficult for localities to continue backfilling declining state support. to
5
General Fund Revenue Forecast Changes Since Last Year
2o.o°i°
ls.o°ro
lo.o°i°
- 2008 Adopted
s.0% o - - 2009 Introduced
0.0% ~
• - • 2009 Adopted
'
~
~ ~~ ,
-S.o% -~ -Au .'09Interim
- ]. s.0%
FY00 FY01 FY02 FY03 FY04 FYOS FY06 FY07 FY08 FY09 FY10
est.
• 9.2 percent decline in state GF revenue in FY09
• Est. 1.6 percent decline in FY10
Cumulative results: >$S.Sb. in 2008-10 state budget reductions since
original 2008-10 budget
Note: 10+ percent revenue growth required in FY II to fund existing spending policies
in the 2010-12. 11
Dismal 1St Quarter FY 2010 GF Revenues
%ofC~ r-onar.~t % %Zhu 1St o
Ir><livicl<aal Ir]DOlT>r T~ces ~.1% -1.8% -s.~/c
Wrrh~lc8~ ~z°i z li ~.~-~
Fstimater~Payrrer~s 13. /~% -ICS"/o 23.4"
Refirr~ -13.b'% -LZ% 1&~~
Salas Taases ZU 5% -04% -5.9'/c
Capa-ate )<rloorr>e Tapces 4.7% 22% -7.9'%
All Ctt>er g.8% -53% -lfz4%
7btal C~'Re«n~es 100.0'/0 -1.6% -7.4%
lz
6
Reductions to the FY 2010 GF Budget
~~ ~~
~~ ~Q
Dilect Aid to K-12 $5,930.5 $5,148.2 -13.2°/a
Nlxliraid $2,672.1 $2,720.4 -169%
Otl~ filth 8rliuran Services $1,723.4 $1,521.6 -11.7'°/a
H~ BcOtl~ Ecktrdion $2,060.8 $1,7'94.1 -129%
P~.iblic ~' $1,828.2 $1,686.7 --7.7°/a
C'arTaxReurbtusara~ $'950.0 $950.0 QO°/a
All ati~er* X2,424.0 ~~~ -X1.1°/a
Total Cam' $17,589 0 $14,9901.8 -14.8°/a
* Aar,., fn,a,c~ oarccHOe &~ nauat.esoiaoes,_P~. eveau:.~, ~~ ~ ~', od~a ~
Note: Federal stimulus funding offset 51.5 bil. in FY 2010 GF budget cuts 13
FY 2010 GF State Aid Cuts to Localities
N~j~- Gies a~5lfabe Aid to Incalities
FY~O10 C~App~ojriadons
°ro
c~~1c;F cxr~c~ Aram
.~~~ A~~, % i °ro~c~
K 12 I~aci lskrdiaiAi3 $5,93513,050 $5,148,721,672 -13.2% 71.0%. 34.3%
Cdr Taac $950,000,000 $950,000,000 O.O% 13.1% 6.3%
Catpets~cllB~td $666y153,186 $600,400,897 -9.9% 8.3%. 4.0%
Carlleha~e Sa~i-es Au $3zi,640,564 $279,208,772 -13.7% 3.8% 1.9%
CanniYySaricel3iarf; $256,463,596 $227,360,416 -11.3% 3.1% 1.5%
I$599 $x05,001,876 $1ffi,6zi,320 -1Q4% 25%. 1.2%
laTJ.hnenl~ $50,787,956 $48,266x90=1 -S.Op/o 0.7%1 0.3%
Reoa~TaacLXsa~tirn $40,000,000 $40:000;000 OOP/o 0.~/~ 0.3%
RbliclirryAid $17,378x62.8 $1fx509,fA'7 -S.OP/o 0.2% 0.1%
,Flad~le„StabeAidRe~m C$Sg00g000) ($SO,000S000) -0.7% -0.3%
14
7
S~ur>rrr~y af' (bv~no>s's SepterrlUet- X009
Proposed Actions
r~2~io
G~rraiFindReu~s~Si~ortfall ($I,35Q~
Rainy Icy ~n[l ~1 $2g~p
Ot~~er Qie-Ac6ias: $52F16
A~~cy P1ed~dl~alanoes $14Q2
ale of Ccneczicrs Facilities $25.0
Fue Pi~atrs Furl1 $2fx0
Federal Stimdis V~ai~r fcr Hi~~ Ec><ration $91.5
VRS Fn~ploy>rr Rctn~i~t Raze Slspension (mcl. Imo) $10~ 1
VRS rrxrRetittrr~a~ Benefit Rate Sl speiisicn (incl. Imo) $3() 9
N>:cflraid Ackfitior~al I~ec~ral Stimd~s N>~teh Rate $9'7.0
Additional Lottery Pro&ts for K 12 $9 9
is
S~u»y of Govemoi's Sent x(109
Ptvposed Bt>~t Actions (ao>~m~ed)
Local Aia c~'>a~n~ti«~: $~9
K 12 3~les Tax $i7.6
Litaary Furl bl~* fa- Teacher RetuaiaY $55.0
Slipp><vY Wlth FY 11 Federal K 12 St~iil~s V~i~a• $68.9
CcrnYiatiar~l affioas $i0.4
Aid to Pblice De}rah~ca~ts (>-B 599) $13.7
C~ ~~ ~ ) $51.3
Net I-i~~a- Fxllratiai Rectstiais $105.3
Close Cats Factilities $11.6
Che ~Y FsY}~loyee Fuiott~i $16.3
li~~Y Care F2>r>dn~ $7.0
N~rYal I~ahh'Tieatimat G~tas $6.3
Foa~nric I~elapnfrt/I'aui.4n $3. l
C1tha-A~ryReckrtiais(inrL defaiede~a~es) 139.1
Tblal Acfigts $1,3~ii.2 16
g
Over Next Few Years, State GF Budget Will
Continue to Be Under Severe Pressure
• FY10 GF revenues expected to be $750 mil. below FY06 GF.
- Less than $2 billion in new GF revenues available for 2010-12 biennium.
- Increasingly difficult choices will have to be made to balance budget.
• Medicaid program likely to consume all available new GF revenues in the
2010-12 biennium. Virginia's Medicaid program already ranks 48~' among
states -strict eligibility criteria combined with fewer low income people,
low provider payments, limited optional services.
- $685 mil. available in ARRA Medicaid federal match increase for
FY10, only $367 mil. available for FY11, $0 for FY 12.
• State GF K-12 education aid reduced 13 percent in FY10, but half of GF cut
offset by temporary federal stimulus funds: FY 10 - $434 mil.; FY 11 - $296
mil.; FY 12 - $0.
• State budget still not yet right-sized for new revenue reality - "one-times"
used for over half of 2008-10 budget balancing.
• Transportation program also shrinking rapidly and big concern. 17
GF Revenues Not Expected to
Exceed FY 06 until FY 12
$16,000
$15,767
$15,566
$15,500 $15,389
~rit;
1-
$15,000 $14,834 •~~~"
$14,618
$14,500 $14,315
$14,079
$14,000
$13,500
513,000
2006 2007 2008 2009 2010 2011 2012
18
9
Machraid time Fort
FY2010 ~~ FY2012
~~ $2,273 $2,817 ~i,427
;facial Rev $304 $301 $298
Feclexal* ~i,759 $3,661 $3,528
Total 1VBcficaid ~7%Qnv~th $6,336 $6,77'9 $7,254
IVl~dcaid (~' as Percent of'lbtal C~ 157% 188°/. 21.8%
AR12AStiinilLS Fi mc6ing * $685 ~i67 $0
'''Assures FNiAPremms at 6LS)%ttrucY2olo thanretuis i° 5U%mGI'ZOll
19
Virginia Spends Significantly Less on
Medicaid Than Other States
Fizvlh~f %of N1~cficaidF~aYfitucas -
Pb~.dation -2006 Pty Capita FY07
i~rrited 20% $1,061
~V1Y~11d 11% $~~
<.=;oloracb 12% $605
<3aoig}a 19% $736
Irriiana 16% $'808
rv>~cyland 14% $967
Pv~etts 19% $1,592
2~btth C~rnlir>la 19% $1,087
Tai~ssae 25% $1,159
`J~Slrii~i 19% $898
~t1`19007~7ri 18% ~L
Source: Kaiser Family Foundation, Stale Health FactsArg 20
l~
Nleciraid ~enci'ih>ues by Ide~rtifiade I~]igjUility C~tegoiy
250D
2aoo
vsoo
$ ml.
laoo
soo
0
>~ aoo~ 2001 zoo2 20~ ~ ~ 2006 2007 200
Fiscal Yea
t Sod~satled ~- fwd -t- I owT~cme Q 73a~ ~ phgai V Wes, mil(- Inw Iica~ C3aa1~ Mts
Source: Virginia Department of Medical Assistance Services 21
Significant Additional General Funds
Will be Necessary to Maintain Current
Services When Federal Stimulus Ends
AIU~ sa>I>~» ~a>l~ <s ~.~
r~><o
~.*
$6gs
I~12 Riltic Friration $434
IE~-Eriration $219
9~eri~s(Bryne.helice) $Zi
SFSF~'~rt:al $142
Tbfal $1,470
~* > ~-»-
$~~ $31s $o $6ss
$296 $138 $0 $434
$36 $183 $0 $219
$0 $23 $0 $23
~ $109 ~ $102
$699 $771 $0 $1{x7U
* Federal ARRA stimulus funds used by Virginia to offset general fund cuts
22
11
1V~jor"or,e'liirrs" Nbre'II~nT~lrofsn-ate~s
ro ao~ $ss Ba. Zoo~lo a~
Rainy L>9y Furl ~l $773
Salmi T~cAocdaalia~LPCAc~s~t/I'~cAin~sty $1~6
BotYlad Ikbt fa- Cam' ~'~pital $355
Iklay 4th Q vRS RdrtataY/Ba$rt Pay~rg~Ls* $135
State Frrployec Fuia~* $16
SeIl Ptsa~l'rasfer Fie Pto~-ms Fuzl to Cf~' $51
Flifnoeci ARRA SFSF NHdicad Nltch $1,(199
ARRA SE'SF' - Flesnble FLncis $219
ARRASFSF - Fshc~-lion ~
Trial N)~jor ~'Q>e~re' ~ Bll[~Ct Shategies $3,446
* Irrlclrs 1~IC~' ag3zytrasf3h~ C~'
23
General Fund Tax Changes Over Last 10
Have Neutralized 2004 Tax Increase
FYI Zoo~lo($lvn.)
C'ar Tax Relief 1999 ($1,900)
I~ic Rehab Tax edit 1999 ($92)
Lowiiaorn~ Tax Relief 2000 ~ 2007 ($125)
I and Re~valirnTax C~echt 2003 ($300)
2004 Tax RefaiYS 2005 $1,600
Addl Red~xed ~ Tax on Food 2006 ($i81)
9uft Ii~ru~oe PreniuYS and
Reoarl~ian Taxes for Transportation 2009 (~52)
Estate Tax Repeal 2009 11
Total ($1,861)
za
12
New Debt Capacity Is Limited...
If Virginia Wants to Keep its AAA Rating
~rr,~- ne>~ sew ~ ~io~-~~~>~a^
rlri~-~m~ ~~ ~ ~>~~
60%
5%Debt Ca aci Adviso Committee Polic
5.d'/o
40%
3.0%
20%
1.OP/o
QO%
20C2 20Q3 200e1 20(15 2006 200'7 200 2009 2010 2011 2012
+ Taal I1Ut vice as aR3oaY cfRe~s><~e
25
Somce: Evelyn R Whitley, Director of Debt Management Preunution to loin[ Subwmrttittce on Public Safety, May 21, 2009.
2010-12 Budget Outlook
2010-12 GF budget FA outlook assumes FY 2010 current services
appropriations with four exceptions:
1) A seven percent utilization growth rate in Medicaid funding.
2) Rebenchmarking increases in public education funding
(Did not restore support position funding; July preliminary: $60
mil. FY 2011; $79 mil. in FY 2012)
3) Planned GF debt service cost increases
4) General funds necessary to offset loss of federal stimulus funding
26
13
Cam' lit Qrtlool{($ IVlimors)
FY2011 FY2012
Aug 19 Re~aiae Forecast (3.8°/9 5.3°/91 $1618 $15,389
Tiasfas ~ ~
Total Fst C~ Avmlable
C~
t S
i
i
i $14,947 $15,728
merr
~
cie~pp~r~r
d
at~
>~i2 Direct Aid (urcl Ong)
$5y-34G
$.Sy661
F1iglrerB~OtherFtltrcation $1,805 $1,842
N~cicard (7%ariaal gran~-1h) $2,817 $x,427
~~'~ $1,566 $1,566
~~ ~~Y $1,710 $1,710
Car Talc $930 $950
Planact Cam' Ikbt Service $600 $630
All Ckher "°" $1,645 $1,645
Total ~ $165439 $17,430
Projected Budget ~ ($1,492) ($1,~p2)
"°" All Qtrr ides I-eaclalic~ £~ati~ Jidr~ ~1Chi~ F'^R~ Ccirrre~e &"Ti-~
Nat Ra., Cap~l, c~ahal ~°~Pt~l~s
z~
State and Local Revenue Shortfalls Make It
Likely K-12 Policies Will be Altered
• There are seven key components to the SOQ funding formula:
- Number of students
- Staffing ratios for teachers and other funded positions
- Salaries of teachers and other funded positions
- Fringe benefit rates
- Standard and prevailing support costs
- Inflation factors
- Prevailing federal revenues related to support costs
/ Approximately 79 percent of SOQ funding is for salaries and benefits
/ FY 10 state budget reduced support cost funding by $341 mil. Not
likely to be restored in 2010-12.
is
14
Sotu,oes of >E+imcls for I~12 Eaq~eorihmes
C~J F'Y09 to F'Y 1~
ssaoas~s~
g~,oogoogaoo f -~' "~-
1
$6sO0g00~ 00~ ~- -~ y
$S,~~OOg000
$q,OOg000 000
$1,000000000
~~~~~~
Cln~ frx Savnts ~ -~,
$1,000000 000
1969 1990 1991 1992 1993 1993 1995 1996 1'A7 1996 1999 2000 2001 7A02 2003 20oi 11705 2006200'7 2o061D09 2010 2011 2012
29
Shrinking NGF Transportation Program
• FY 10 transportation budget has declined 23 percent since 2008
causing $3.1 billion in cancelled highway and transit improvements.
• 23 percent decline in FY 10 state public transit budget since 2008.
• Eliminating all state and federal funds flowing through primary,
secondary and urban formulas
• Cutting VDOT employment by 1,000 full-time and 450 part-time
• Closing at least one-third of VDOT residencies and equipment shops
• Reducing annual maintenance spending growth from 4 to 3 percent
including local street maintenance payments
• Implementing reductions in mowing, safety service patrols and ferry
service
• Closing 19 rest areas
• Additional budget reductions announced in November. Adequate
secondary road maintenance funding no longer available if all
federal funds are to be matched.
30
Policy Alternatives
• Reduce local school funding and seek local
government/school district efficiencies (e.g. merge
functions HR, finance, transportation maintenance, etc).
• Allow increased local flexibility in using state aid.
• Include car tax reimbursements as part of any "flexible"
state aid reduction base.
• Revisit tobacco taxes, sales tax dealer discount, and prior
tax reductions.
• Increase local option tax authority.
• Hope for new federal aid initiatives for Medicaid and
education!
31
16
NOISE ORDINANCE
Deputy City Attorney Christopher Boynton
3:39 P.M.
Attorney Boynton advised, in April, 2009, the Virginia Supreme Court struck down the
"reasonable person" based standard contained in the previous Noise Ordinance. Every
jurisdiction in Virginia has one and Virginia Beach's compares as being slightly more
permissive. There was concern about the noise generated by certain motor vehicles and
problems with music and other noise issues in the Resort Area. Public comment is being
received both at meetings and on vbgov.com. From the very beginning, it has been noted the
idea is not to write tickets, but to address the problem.
In reply to Council Lady Henley, Mr. Boynton noted people are sometimes reluctant to invite a
Police Officer to their home to witness an alleged violation. In the old Ordinance. a lot of time
was spent getting convictions. This new Ordinance is designed to issue a citation as a last resort.
He will report back to City Council in December or January with further information
October 20, 2009
PLANNING ITEMS PENDING
Jack Whitney, Director, Planning
3:52 P.M.
Mr. Whitney provided background information on the following Planning Commission items to
be heard in November (PowerPoint appended).
November 10, 2009
SGA -Pembroke Plan
Beach Bingo Use Permit
Bryant & Stratton Use Permit
Endeavor Enterprises Rezoning (deferred August 11, 2009)
Amendment to the Zoning Ordinance re front porches
Amendment to the zoning Ordinance re political campaign signs
November 24, 2009
1~Tan Wisniewski Use Permit
Living Word Gospel Use Permit
Taddeo and Sim Use Permit
Amendment to the zoning Ordinance -Accessory Structure Floor area
Amendment to the zoning Ordinance - Cul-de-sac radius
Fitness5 Use Permit
October 20, 2009
10/19/2009
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10/19/2009
REGIONAL ECONOMY AND IMPACT ON THE COMMUNITY
Discussion Requested by Councilman Dyer
4:08 P.M.
Councilman Dyer appreciates the opportunity to bring this discussion before Council in light of
the recent "State of the Region" information provided by Dr. Koch of Old Dominion University.
A report (appended) on the "Potential Impacts of a Shrinking State Budget on Virginia's
Localities" by James Regimbal, Jr. commissioned by the Virginia Municipal League, was
presented and is appended. Mr. Dyer noted the recovery will be a lot harder than people think
and as City Council goes forward with the Budget process there will be a lot of tough choices to
be made. How the future will impact the City's plans remains to be seen.
Council Members discussed recent Town Hall meetings and the feedback that came from them
and how to improve them in the future. These type of exchanges help citizens to see what City
Council has to deal with when cutting the funding pie.
Councilman DeSteph added it is time for us to stand up and fight for keeping the Military in the
area with all the talk of moving ships and planes elsewhere. Help is needed on the State level.
Discussion ensued regarding this reinforcing the importance of the Strategic Growth Areas as
well as economic development opportunities in order to grow and diversify the economy.
Mayor Sessoms noted the importance of maintaining the City's Triple A Bond rating in future
endeavors whether it be projects like Town Center or light rail.
October 20, 2009
ADJOURNMENT
Mayor William D. Sessoms, Jr. DECLARED the City Council Meeting ADJOURNED at 4:38 P.M.
-~-~'~c-~- ~- -- ---
Sandra H. Thompson, MMC
Deputy City Clerk, II
R th Hodges Fraser, MMC
City Clerk
City of Virginia Beach
Virginia
October 20, 2009