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JANUARY 13, 2015 WORKSHOP MINUTES CITY OF VIRGINIA BEACH "COMMUNITY FOR A LIFETIME" CITY COUNCIL o ' � 46 2 MAYOR WILLIAM D.SESSOMS,JR.,At-Large ,1'•4 ` r A • Y VICE MAYOR LOUIS R.JONES,Bayside-District 4 '� e M.BENJAMIN DAVENPORT-At Large ROBERT M.DYER,Centerville-District 1 Q9R*s s 0W OF OO RNAZOH BARBARA M.HENLEY,Princess Anne-District 7 SHANNON DS KANE,Rose Hall-District 3 JOHN D.MOSS,At-Large AMELIA N.ROSS-HAMMOND,Kempsville-District 2 JOHN E.UHRIN,Beach-District 6 ROSEMARY WILSON,At-Large CITY HALL BUILDING JAMES L. WOOD,Lvnnhaven-District 5 2401 COURTHOUSE DRIVE CITY COUNCIL APPOINTEES VIRGINIA BEACH, VIRGINIA 23456-8005 PHONE:(757)385-4303 CITY MANAGER-JAMES K.SPORE FAX (757)385-5669 CITY ATTORNEY- MARK D.STILES E-MAIL:crycn757) oucom CITY ASSESSOR- JERALD D.BANAGAN CITY AUDITOR-LYNDON S.REMIAS CITY CLERK- RUTH HODGES FRASER,MMC CITY COUNCIL WORKSHOP AGENDA 13 JANUARY 2015 I. CITY COUNCIL BRIEFING - Conference Room- 4:00 PM A. MINORITY BUSINESS COUNCIL ANNUAL REPORT Carla Bailey, Chair II. CITY MANAGER'S BRIEFINGS A. COMPARATIVE INDICATORS David Bradley, Management Services Administrator B. DREDGING HURDS COVE NEIGHBORHOOD SSD David L. Hansen,Deputy City Manager -1- r NS B'''iy VIRGINIA BEACH CITY COUNCIL Virginia Beach, Virginia January 13, 2015 Mayor William D. Sessoms,Jr., called to order the CITY COUNCIL'S WORKSHOP in the City Council Conference Room, Tuesday, January 13, 2015, at 4:00 P.M. Council Members Present: M Benjamin Davenport, Robert M. Dyer, Barbara M. Henley, Shannon DS Kane, John D. Moss, Amelia N. Ross-Hammond, Mayor William D. Sessoms, Jr., John E. Uhrin, Rosemary Wilson and James L. Wood Council Members Absent: Vice Mayor Louis R. Jones in Richmond January 13, 2015 -2- CITY COUNCIL'S BRIEFING MINORITY BUSINESS COUNCIL ANNUAL REPORT 4:00 P.M. Mayor Sessoms welcomed Carla Bailey, Chair—Minority Business Council. Ms. Bailey expressed her appreciation to City Council for their continued support: Gr �� €0/0 2014 Nine - ",''s r `i t " wb - die and Purchase (� �;, i , ii >wMinorityVendors ., S , Janua ,'i2O"15 Ms. Bailey provided their overview of the Minority Business Council: i i. a envy to the City Managers #, respect to the City's procuretne 6 6 '''. .-'.-',"4440101. , educes for small-,woman-,services 6�,0.>, F i � inority-owned businesses. �; . ro z,< .�s°,B y, t :To be the leading influence,i,connecting contrackor � a a P Yith City opportunities and beyond. F rf .Ta advance and facilitate an environment of business • 4,*:. �es,focusing on increasing Expenditures to mfnority and ✓ra e businesses by the City of Virginia Beach as a means to ar e City's economic development and vitality. a F575.4_,.....-_-we meet:2nd Friday of the month from 3:OOpm-4:3Opm.at {c Development's office located at A525 Main Street,Suite ash ` =stings are open to the public. ;e The MBC provides information,guidance and programs ., -the MBC to understand how to work with the City s - „r. 1 ?�-ch. :4ddiwionally,you may find useful information ';,,,,1-3-, ,?,:- how with other government agencies. , www.vbgov.com/mbc w�� ts� .facebook.com/VAB.MBC January 13, 2015 -3— CITY COUNCIL'S BRIE FING MINORITY BUSINESS COUNC,IL ANNUAL REPORT (Continued) In 2008, City Council set an aspirational goal of 10%for Minority expenditures: t0�is, s '_ ��sz :=1 �s"F`�-�_y�91 ; —two�major areas of ea pend 1."Y' l&eServices Expenditures (Total=$120.8M) '°'F,Y .. i, b .fbiAO'J Minority Business Expenditures $10.5M 8.7°o Note' .- Women-Owned Expenditures $10.5M 8.7% °r Service Disabled Veteran Expenditures $.5M .4% vi:8.'T(,—l77'If'Vl'..3'^';,3''.-24-,',;''.11''.5,'1:--.61 ..:.:„.-_.-,:::'„...!.,.:.,,,:::.".1,' Total Minority,Women&a SDV Expenditures 122% tt'•.Te..zit&'17$'i7,',z,',1-•-'..i',';'.,:'1;,';..;..„:',.;-f-_f''„'_';..'-0:'.','_.i;-,'.1:!,i.S,,,,,1,?:E,:-:1,„.`,-:...E....,,-.'-;1;2- Total All other Businesses $98.5M 82.2% F- 1Construction Expenditures(Total=$133.2M) :i„ Minor ty Business Expenditures $1.OM .75% .:6.1.;-''.*.;:-"1;.-',-77',7,-..,,3-.--1-1'--.,,''--'—'-f, Women-Owned Expenditures $3.1M 2.33% _Service Disabled Veteran Expenditures $.2M 2% Total Minority,Womerx&SDV CtP ExptendituGes plc s{ Total All other Businesses $128.9M 98.9%7 = 1 f nonny owned firm,Arvon,accounts for$5 9 mutton which e vsfie . i' tI,minorityexpenditeresareonly4°1n fgoods.and% pees t ",,':0'4 ''4 9 � fTotal Expenditures to Mino a44' =r,a C onstructton(Non-CI and CIP,excludes su . .. ,.,„, a!} #:• fl 933% L,, 2 939% 3.Afi' '" �� `d3ax Mwawx00.0,.."10,-,,-,),..,, cM 4✓Y,w b6% 5.1T5 5.39% P ronacw ✓h 3 + (i nY Pe,wnW. f �� 3509 %]0 i011I F 33 1014 . qua r cam. ,x s January 13, 2015 -4- CITY CO UNCIL'S BRIEFING MINORITY BUSINESS COUNCIL ANNUAL REPORT (Continued) Below are the expenditures by ethnicity; in 2013, $8.3-Million or 64.58%in total expenditures going to Asian Americans; $3.3-Million or 25.61% to African Americans; $1.1-Million to Hispanic Americans and$148,822 to American Indians: inority Expenditures bar -- ��d onstruction(Non-CIP and CIP) s F • to ,1:4,' i"rri' v np < x E ° Ir k ' -- _ -- - ,, s -� 2 ,,..r.„ b BAi ".`.5.- odo eF w,ocid 5,51M 'x ww,r ` 5 wahourA pen4rtue ?'�,: AIP kB i £ : 5.2 4 3 1 9.34%_ • '} ._ .-r American_.-,-i--American Indian Asian American Hispanic _ i °3al Ij $0."4M $7.9M 6.-74.. T norltyr Expenditures $1 S Mrtlion ,��° ,"-t5;k'_r;;:t:5,Itr:"—f!ti-rtzp.ff,l instruction Contrati rt= 4,O'T .ea of weakest participation ,�� UCI** Non-UCI _� (3 Projects( (47 Projects} _ Small 34 $0.62M 0.77% $28.16M 50.37/ ��° u a <'' Woman 3 $0 0% $0.58M ,p :r::,Y;''.::1; :71 Minority 0 $0 0/ $0 0% t.',1A"g°.",',1:`,. A NonSWaM 13 $78.93M 99.23% 527.16M 48.59/ f F a 'lilt,'..�� ... ;� 'pig --''.wfl mss:.'" . r'!es-subcontracting data , January 13, 2015 -5- BRIEFING CITY COUNCIL'S MINORITYBUSINESS COUNCIL ANNUAL REPORT (Continued) Two women who owned firms took advantage of the Bond Waiver Program and were successfully awarded a contract: a v ,-,,,k4::::;....-,..-,-.1.,"=. y, Ron Program ^ . 4.o �'.+ -ja it. +nd Waiver Program°Awards �.=aK. ppbF am �TIyV' eat Atte nay Office build-Out Contracting Solutions,Inc 5323 440 .,yam <'g alck Connection Best Repair Company $228,416 1.°� `' t+1,',, = d building 1855 Mosley General Contracting 5227,933 , a4 R (woman-owned) a'��g°.o o- ated Handling Materials Homeland Contracting • 5296 620 P . s (woman-owned) , . ZBZ 8 Associates $131,365 ,e ,Aces ire: QuickConnect•on Best Repair Company 5230,686 - hpe Fv'!:1 .grking Lot Lighting E&P Electnca1 Company 582,786 ,, . Total Awards 1,1,:';',:::::::11:4 FY 2014 81,515,246 City Council on Jun.28,2011 "-,�°� - The Small Business Enchancement Program (SBEP) began on August 6, 2012: . ;lira m v . rill Business Enhancement Prc =s - `fired on September 27,2011 —Implemented on x lust 6,2012 °�� i , c .t fires primes to involve SWaM Certified Businesses iontracting ��iP ie contractor MUST submit aSubcontractingParticipation Plan with the bidj,,':.:11L,,,,,i,1`..",::::::: i b /orgood faith efforts undertaken. .P. subcontracting—50%of subcontracted work must go to SWaM x'� Certified businesses. iiv4:7'...1:57:4':!:::7';':;:::::).7� treach list of SWaM-certified subcontractors provided � r r �r s�vnewedbytheidinorityBusinessCoordlnatq�s January 13, 2015 -6- CITY CO UNCIL'S BRIEFING MINORITY BUSINESS COUNCIL ANNUAL REPORT (Continued) mall Business Enhan eml f Capture Subcontracting Data r y k% .,wttUci projects '®,= yF inion were self erformed—no subs ,. �� xillian had$9.4 million in subs > `` rry s°y °c Award Amount V w i t$ 7.5M 80% �a'' iii $aR 1.2M 12% .y� . 'ff...71-:.•`'.'''':',.,...!F'''''"..:%*,..?irs:2 Y;"*.;."1.4$ 9* ',.'''''''":-,..*::-:::":,-/7--* , s ;$ 0.7M 8°l 'y. Below are the 2014 Collaborative Activities: P 419 pU ive,Activities �V,. ,4 z 3 y Spring Event—Contractors Roundtable -n-American Roundtable ,rS' BC Conference and Expo ming with School Board - January 13, 2015 -7- L'S NG IL MINORITYCITY BUSINESS COUNC ACONNUALUNCIREPORT (Continued) The Minority Business Council held their annual Conference and Expo and hosted over 250 attendees: ��° and Expos uli:D1 C �� C4onference and Ex o �� 5 • �� p OSE s i� �e ,� Powerful Coalitions' peg'. weaker—Susan'Syd'Dorsey r of small Business Equity and Development—Commonwealth. ' a.,e_ + iiinia *e a 0 Attendees tess Awards r�.ae Incredible Supply and Logistics 2 i.,.l.4::i;f...,:::,,i,:5,-„i::!:-::ii;i.•-- 4-outstanding Small-Owned Business Award • ' igns of Success,Inc: '@ r utstaindinig Woman-Owned Business .� , :.';.i*i,:lri_-.._,,.,-:.i.i.i,,- ate fresh Cleaning,LLC e tstand ng Minority-Owned Business Award . . Contracting,Inc. • ® standing Service Disabled Owned Business Award ii lBeach Human Services—Developmental Services ivision 4 d ming Exceptional Achievement Award e P, Below are recent Initiatives.• i,71.,:i,-;;;;;;,:;1,i,;,:..ii,:::•:...;;:-:,,,i.,-,:'::,::&,: tF=anther&Williams Briefing: 1 2014 t F:.t actors Roundtable: M 2094 ` :.':,:.:W0.;-7:4;_''„4:',,,l';r4v4''a.,,-,,_1..L..r-*:,-..7,;--,.t:--.,:.:':,,0!r=1',itf„i1,:4,.;.;;tk,11,,.:;*„Z:';;,-f;I.';y--11.1 ;= * Milman Dyer's Process Improvement Task fierce , '' s: Business Subcommittee: Jan 2014 N January 13, 2015 -8- CITY COUNCIL'S BRIEFING MINORITY BUSINESS COUNCIL ANNUAL REPORT (Continued) Below are the 2015 Legislative Items before the General Assembly: Items 3� ✓.fir Po a � .fir"�i ens Procurement Program s°��d3 .+ -Define Micro Small litho ness in the Code of Virginia and amend the Coder +b' -s'k'. '-a`.- e calityi by ordinance,to enact a program for the enhancement of'micro busise x '" :.,.*H,, That mrgorsthe authorization provided in Exeoative Order20 se r_s 3 4 4,�a 6 'err;: t rePre-0u for the Bond Waiver Prog -t Transportation Construction Projects Under$500,000 t -To amend Virginia Code to allow bcalities the ability to waivebonding for nm' `,. . �• �,rtransportation construction project between$100,000 and$500,000 without having to undertakes., Fs' cation process r " ent of Prompt Payment Requirements • "s.Reque t'-Provide ton an oversight function of prompt payment requirements between pnme d .biers and subcontractors, y or engthening the prompt payments provisions in contractsrt...,,,-,,,..„,;":% { " rnpoit by the state comptroller regarding prompt payments.• 5 p y 6r` s Expansion Act of 2015 to be introduced this session mroWd F� r . +- these requests,if adopted by the General Assembly �Er 2.___,..„-0.4.14,44,,''','-- -,,,-',"' ; °pi.µ»µ+s3 V'e. !'�'- .S Below are the categories that have challenges meeting goals: G.1,,lis � z!, m Bid Submissions - , , r ntractor Utilization r 3 • m ram r4wareness 2 son types of Projects where success likely �ey� ` January 13, 2015 -9- CITY COUNCIL'S BRIEFING MINORITY BUSINESS COUNCIL ANNUAL REPORT (Continued) � �6 6 Uzi gg �r � ° 'e✓ � 666 ' � BU �NESS COU 6 6 City Council Liaisons a66� Councilman Bob Dyer 1, ',-Chair 6s Councilwoman Shannon Kane n 6 ci _-rifer-Vice Chair ' cah�5ter-Financial Counselor 6 $ School Board Liaison — s ht-Secretarial Officer Mrs.Jobynia Caldwell tur r .0_hnson a 6 $ roaster 101t: <. ,.° r �rterigtaxrsot Mayor Sessoms expressed his appreciation to Ms. Bailey and each Member of the Minority Business Council for their work. January 13, 2015 -10- CITY MANAGER'S BRIEFING COMPARATIVE INDICATORS 4:35 P.M. Mayor Sessoms welcomed David Bradley, Administrator —Management Services. Mr. Bradley advised this is the 7"'year they have provided a presentation. This is just one more part of the Budget Process: MCI NA 0 r\a %47 % I' ilae, / �, a a' a 1 0 aw of %,,;7% ,z,a ,::,, ,a%a 0 , 0 , 0 , 0 , 0 , COMPARATIVE INDICATORS TO OTHER David Bradley HAMPTON ROADS' January 13,2015 CITIES In each locality, Education is the highest funded item and Public Safety second: EXPENDITURES BY CATEGORY - FY 2012-13 ALL FUNDS 100.0% - - . 14e% n 3Y i [ 80.0% --. — 1 60.0% _ t_. 38.9%.... 47.7% 36.1%... 44.5% 34.2% 37.7% ... 38.7% 40.0% _ ,. d 20.0% - ......... wxxaa ... "aA""mm 12.6% 16.5% 18.4%.. 20.0% 16.6% 15.2% 17.8% o.0% Virginia Chesapeake Norfolk Portsmouth Hampton Newport Suffolk Beach News •Debt Service a Enterprise Activities Id Community Development Parks,Recreation,and Cultural Education Si Health and Welfare is Public Works i1 Public Safety and Judicial Administration ®General Government Administration Source:Virginia Auditor of Public Accounts 2 January 13, 2015 -11- CITY MANAGER'S BRIEFING COMPARATIVE INDICATORS (Continued) Real Estate Tax is the highest proportion for all the revenue sources in all localities: LOCAL REVENUE BY TYPE FY 2072-13 t00% t3.3% mom u.?% t5.t% .u0, t3.9% r6 % mom own . MINI— I 8o% ..... ___... , ___. ____. ___ -___. ems — -___. ........_. INIR MI 6o% N. 70.5% ® ® 1.1111 1111.. % _ = - MOM11.6% - 94% 73 g.y% 8:z% t477 40% r-- --- — -- zo% .... 49.7% 55a% __. 42.9 50.3% 43.6% ___. 41.7%_._. 49 9%.... o% ____ ......... _........... _......... ____...,. Virginia Chesapeake Norfolk Portsmouth Hampton Newport Suffolk Beach News O Real Estate Taxes ®Personal and Business Property Taxes ❑Other Local Taxes 0 BPOL ®Meals Tax 0 Consumer Utility Taxes ■Local Sales and Use Tax 0 Revenue from the Use of Money and Property 0 Miscellaneous Revenue 0 Charges for Service Source,Virginia Auditor of Public Accounts 3 \a \a \IV\I \atm Vi a%a%aww%4 %t:mit71' 44ta%a a%e7wwwv:1 % if4 A( 1.1,7 „,.,_ , , ,, p , , , , , Ai Ilk COMPARISON OF MAJOR LOCAL TAXES AND FEES January 13, 2015 -12- CITY MANAGER'S BRIEFING COMPARATIVE INDICATORS (Continued) Virginia Beach has the lowest tax rate in the Region at Ninety-Three Cents. None of the localities increased their tax rate last fiscal year: REAL ESTATE TAX RATE PER$100 OF ASSESSED VALUE $1.40 $1.27 51.24 $1.22 $1.20 $1.15 _.. 51.05 51.03 $1.00 —50..93 $0.80 $0.60 50.40 _._. ... ..�.. :�._...... __ So.2o Virginia Chesapeake Norfolk Portsmouth Suffolk Hampton Newport Beach News Source:Budget and Management Services 5 Virginia Beach has the lowest Personal Property Tax Rate. As with Real Estate Tax, Personal Property Tax is the hardest to project: PERSONAL PROPERTY TAX RATE VEHICLES AND BUSINESS 1 56.00 $5.00 $4.50 $4.00 I $0.25 II $4.00 $3.00 $5.00 $2.00 $4.08 $4.33 $4.25 $4.25 $4.5° $3.70 $1.00 / 1 Virginia Chesapeake Norfolk Portsmouth Suffolk Hampton Newport Beach News Source:Budget and Management Services 6 January 13, 2015 -13- CITY MANAGER'S BRIEFING COMPARATIVE INDICATORS (Continued) Every local City has an 8%Hotel Tax Rate: HOTEL TAX RATE 10.0% 8.o% 8.o% 8.o% 8.o% 8.0% 8.o% 8.o% 8.o% -- -- 111111 Virginia Chesapeake Norfolk Portsmouth Suffolk Hampton Newport Beach News Source:Budget and Management Services 7 None of the localities raised the Meal Tax rate last year: MEAL TAX RATE }8.o% 75%... 75%.. 7.o% . o.0% 6.5% 6.5% 6.5% 6.0% 5.5% 5.5% ___. it ......... _.__. ._..... _._ ........... Virginia Chesapeake Norfolk Portsmouth Suffolk Hampton Newport Beach News Source:Budget and Management Services 8 January 13, 2015 -14- CITY MANAGER'S BRIEFING COMPARATIVE INDICATORS (Continued) Admissions Tax is a very small Revenue source and every locality is at 10%: ADMISSIONS TAX 12.0% '... t0.o% to.o% to.0% lox% 10.0% 10.0% 10.0% Virginia Chesapeake Norfolk Portsmouth Suffolk Hampton Newport Beach News Source:Budget and Management Services 9 Portsmouth was the only city to raise their Automobile License Fee this past year: AUTOMOBILE LICENSE FEE jj VEHICLES UNDER 4,000 POUNDS {$40.00 $35.00 $32.00 $30.00 $7.00 $25.00 $2o.o0 1111 $35.00 $ ,5.00 $25.00 $26.00 $25.00 $26.00 $26.00 :: 10I 1114- Virginia Chesapeake Norfolk Portsmouth Suffolk Hampton Newport Beach News Source:Budget and Management Services 10 January 13, 2015 -15- CITY MANAGER'S BRIEFING COMPARATIVE INDICATORS (Continued) Virginia Beach has the third lowest Cigarette Tax Rate: CIGARETTE TAX RATE PER PACK $1.00 $0.90 $0.80 $0.80 So.o ;0.30 #0.60 #0.40 ® $0.75 .. ® $0.80 So.85 ;0.700 $o.6o $0.50 I $0.50 50:0 1 $ Virginia Chesapeake Norfolk Portsmouth Suffolk Hampton Newport Beach News Source:Budget and Management Services 71 Four(4) of the seven (7) localities raised the Residential Storm Water Tax last Fiscal Year: RESIDENTIAL STORM WATER MONTHLY RATE PER ERU 514.00 $13.17 --...:‹-$o.52 512.00 $10.52 410.00 $0.28-* $9.75 31.75 $8.00 $6.00 96.00 $12.65 #0.76 I II $10.24 $9.25 #q.00 $7.35 ® $8.00 $6.99 1 ® ® 1$2.00 s. Virginia Chesapeake Norfolk Portsmouth Suffolk Hampton Newport Beach News Source:Budget and Management Services 12 January 13, 2015 1 -16- CITY MANAGER'S BRIEFING COMPARATIVE INDICATORS (Continued) Virginia Beach has the second lowest monthly Water and Sewer bills in the Region. Implementing the Lake Gaston project has made a tremendous difference: MONTHLY WATER & SEWER BILL ASSUMING 6,000 GALLONS CONSUMED 7 I $140 $120 $118.38 $3.46" $100 S8o $75.20 - - $61.68 $66.14 564.95 S6ot SS•00 33.05 53.471c.$2.33 5114.92 ® $51.2311.00 $40 571.73 . .. $58.63 1 #63.81 555.83 559.95 $50.23 $20 II S. Virginia Chesapeake Norfolk Portsmouth Suffolk Hampton Newport Beach News Source:Virginia Beach Public Utilities Department 13 Virginia Beach had a significant increase in Trash Collection Fee; however, the City is still fourth in the Region: TRASH COLLECTION FEE } MONTHLY $40.00 $35.00 -. $29.25 $30.00 $28.01 $1.00 z.1 $25.00 bil$20.00 $16.50 11 $33.36 r� $15.00 1.00) $27.01 ($101) $ ill $27.08 $10.00 $21.36 $17.50 $18.42 $5.o0 50.00 Virginia Chesapeake Norfolk Portsmouth Suffolk Hampton Newport Beach News Source:Budget and Management Services 14 January 13, 2015 -17- CITY MANAGER'S BRIEFING COMPARATIVE INDICATORS (Continued) The point of this table is to take the tax rates with standardized values to determine what the impact would be. The City has the second lowest tax burden compared to the other localities in the region: COMPARISON OF FY 2014-15 TAX IMPACT f Virginia Newport Beach Chesapeake Norfolk Portsmouth Suffolk Hampton News Real Estate Tax $2,054.37 $2,319.45 $2,540.35 $2,805.43 $2,275.27 $2,739.16 $2,694.98 Personal Property Tax 262.79 261.51 312.23 376.56 320.08 310.06 310.06 Electricity Utility Tax 36.00 45.00 45.00 40.80 36.00 36.00 36.96 Gas Utility Tax 36.00 22.56 18.00 36.00 36.00 28.80 18.12 Va Telecommunications Tax 70.68 70.68 70.68 70.68 70.68 70.68 70.68 Water Utility Tax 36.00 None 67.50 84.00 None None None Restaurant Tax 273.84 273.84 299.92 299.92 299.92 326.00 326.00 Admissions Tax 47.60 47.60 47.60 47.60 47.60 47.60 47.60 Vehicle License Decal 50.00 46.00 52.00 64.00 52.00 70.00 52.00 Stormwater Utility Fee 158.04 88.20 126.24 111.00 72.00 83.88 117.00 Residential Refuse Fee 256.32 None 336.12 400.32 198.00 221,04 351.00 Water&Sewer 740.16 902.40 793.68 669.96 1,420.56 779.40 614.76 Total Tax Impact $4,021.80 $4,077.24 $4,709.32 $5,006.27 $4,828.11 $4,712.62 $4,639.16 Difference $0.00 $55.44 $687.51 $984.47 $806.31 $690.82 $617.36 Note:This comparison is based on the median home value(6210,900)in Virginia Beach for FY 2014-15. Source:Budget and Management Services and Real Estate Assessor's Report 15 %, a%a %a %,4 %aca%1:7tAt7la aaaa% %4:Azta%a‘zi:Ir 0 , 0 , 0 , 0 ,, ,,, , ECONOMIC VITALITY January 13, 2015 -18- CITY MANAGER'S BRIEFING COMPARATIVE INDICATORS (Continued) The data below is from 2013 and the impact of the Recession from 2008-2012 is shown in this chart: TAXABLE SALES $6,000 $5 065 $3,000 0 $2,000 - — * M M l( 1C $0 2007 2008 2009 2010 2011 2012 2013 Calendar Year -®-Virginia Beach(Chesapeake .*'Norfolk -M-Portsmouth .k-Suffolk Hampton Newport News Source:Virginia Department of Taxation 17 Chesapeake has the highest Taxable Sales Per Capita in the Region. This could be due to the major retail establishments being so close to the Interstate: TAXABLE SALES PER CAPITA $16,000 _ ---- — $14,000 $12,000 $4,000 $2,000 s. 2007 2008 2009 2010 2011 2012 2013 Calendar Year - Virginia Beach .0-Chesapeake .*'Norfolk -?t-Portsmouth 0-Suffolk --Hampton Newport News Source:Weldon Cooper Center 18 January 13, 2015 -19- CITY MANAGER'S BRIEFING COMPARATIVE INDICATORS (Continued) Virginia Beach's Median Household Income increased from 2012 to 2013: MEDIAN HOUSEHOLD INCOME $80,000 __ .. _. .. _. __. .. _... .� 1 $70,000 `'\......— $6 855 $60,000 _i _ ....... i $30,000 2007 2008 2009 2010 2011 2012 2013 Calendar Year -4-Virginia Beach -II-Chesapeake -dr-Norfolk 41-Portsmouth 4N-Suffolk = Hampton Newport News Source:US Census Bureau American Community Survey 19 The City has had the highest Per Capita Income in the Region since 2007. Benefits are included in this data: PER CAPITA INCOME $55,000 $50,662 g $45,000 -i ''. .__.. L S:., .: .--.." -- $25,000 2007 2008 2009 2010 2011 2012 2013 Calendar Year .4,,Virginia Beach -a-Chesapeake -r-Norfolk -4-Portsmouth -MI-Suffolk Hampton Newport News Source:US Department of Commerce Bureau of Economic Analysis 20 January 13, 2015 I 1 1 -20- CITY MANAGER'S BRIEFING COMPARATIVE INDICATORS (Continued) Virginia Beach and Chesapeake have the lowest unemployment in the Region; however, each locality has gone down which is great news for the Region: COMPARISON OF UNEMPLOYMENT RATES - NOVEMBER 8.o% 7.o% - ____. ____. ____. 4%____ • .9% _ .8% .,7%..._ ,.2% 5.o% -- ,5% — ,5%4 .o% —°— z t 2.0% .___ _... _... __. __ ......_ ...... _.... 1.o% o.o% Virginia Chesapeake Norfolk Portsmouth Suffolk Hampton Newport Beach News 0 201 812o14 Source:U.S.Bureau of Labor Statistics-Local Area Unemployment Statistics Database 21 aaa' a' %a%a%a%a%a 47%awc:lerzIAa%4 %.a%tn.lay.aa , , , , , , ., , , , QUALITY EDUCATION AND LIFELONG LEARNING January 13, 2015 -21- CITY MANAGER'S BRIEFING COMPARATIVE INDICATORS (Continued) Virginia Beach has the highest expenditures per pupil: SCHOOL OPERATING EXPENDITURES PER PUPIL LOCALLY FUNDED $6,000 _ .. $4237 $5,000 .. .rnm-.M" __. 111 $4,000 • $3,000 —_ 2007 2008 2009 2010 2011 2012 2013 Fiscal Year •.-Virginia Beach 4-Chesapeake --Norfolk -aa-Portsmouth -0-Suffolk -..Hampton Newport News Source:Virginia Department of Education Superintendent's Annual Report 23 Virginia Beach has the highest contribution as a percent of total School operating expenditures: SCHOOL OPERATING EXPENDITURES CITY CONTRIBUTION AS A PERCENT OF TOTAL 55.0% . ......._ _. --- 48.3% 45.0% 35.0% 2007 2008 2009 2010 2011 2012 2013 Fiscal Year ^4-Virginia Beach -■-Chesapea ke -S-Norfolk -4-Portsmouth -0-Suffolk •i- Hampton Newport News Source:Virginia Department of Education Superintendent's Annual Report 24 January 13, 2015 -22- CITY MANAGER'S BRIEFING COMPARATIVE INDICATORS (Continued) Virginia Beach has the highest number of individuals with an Undergraduate Degree and second in terms of individuals with a Graduate or Professional Degree in the Region: EDUCATIONAL ATTAINMENT `RESIDENTS AGE 25 OR OLDER - 2013 40.0% __. ......_ ____. ....... 34.7% 30.0% 28.5%. 28.1%... . 26.1% 22.2% 23 7% 11.9 10.7 9-3 10.0% 7.3 7.1 r Virginia Chesapeake Norfolk Portsmouth Suffolk Hampton Newport Beach News ❑Graduate or Professional Degree 0 Undergraduate Degree Source:US Census Bureau,American Community Survey 25 HIGH SCHOOL GRADUATION RATES 92.9 90.0% .....88.5%. _ __ _.. __ ........88.0%.. . I85.1% 86.4% 83.9% 78.9%... '. r ' r Virginia Chesapeake Norfolk Portsmouth Suffolk Hampton Newport Beach News 42013 2014 School Year Source:Virginia Department of Education 26 January 13, 2015 -23- CITY MANAGER'S BRIEFING COMPARATIVE INDICATORS (Continued) co, csof NA v %a %a ,%tAzienaa%a‘;:laOOOO€ % # iks, vk a , %, , , , , , , , , SAFE COMMUNITY Virginia Beach has the lowest Public Safety expenditure per capita in the Region which is likely due to the tremendous contribution by the Volunteer Rescue Department: PUBLIC SAFETY EXPENDITURES PER CAPITA 1,000 $900 $800 $700 $600 $500 — ._ .._� _. __. . .:.._$472.97_ $400 _.... $300 2007 2008 2009 2010 2011 2012 2013 Fiscal Year - Virginia Beach-6-Chesapeake -*-Norfolk -.Portsmouth -6-Suffolk Hampton Newport News Source:Virginia Auditor of Public Accounts 28 January 13, 2015 -24- CITY MANAGER'S BRIEFING COMPARATIVE INDICATORS (Continued) Virginia Beach has the lowest property crime rate in the Region: PROPERTY CRIME RATE PER 1,000 RESIDENTS 60.0 55.8... 50.0 _. _......_ __. 4.0 40.0 ILl ] ] 30.0 ii .. 20.0 :...... __.. _. _. ___....._ 10.0 Virginia Chesapeake Norfolk Portsmouth Suffolk Hampton Newport Beach News 0 2012 II 2013 Source:Virginia State Pollee,Crime In Virginia 29 Virginia Beach has the lowest violent crime rate in the Region: VIOLENT CRIME RATE 7.0 6.o 6.0 5.6 5.0 4.3 4.0 3.2 3.0 2.1 z.o —1.5 1.0 0.0 Virginia Chesapeake Norfolk Portsmouth Suffolk Hampton Newport Beach News 02012 ■2013 Source:Virginia State Police,Crime In Virginia 30 January 13, 2015 -25- CITY MANAGER'S BRIEFING COMPARATIVE INDICATORS (Continued) MC 1 NAV NZ awwww%4# 1,,,, % ati.aaCaww If, ' 4 ai' : 1:7% of ‘ % iltat7 , 1%, , 1%, QUALITY PHYSICAL ENVIRONMENT Public Works consists of maintenance of highways, streets, bridges and sidewalks; sanitation and waste removal, maintenance of general buildings and grounds: PUBLIC WORKS 1 EXPENDITURES PER CAPITA 1 $450 $400 $300 - -,........ .'....04`""".;r#r►. y$27.29 ..... _... . $200 $100 ..... .._.. __... ...,.- _..� __ $50 $0 2007 2008 2009 2010 2011 2012 2013 Fiscal Year -4.,Virginia Beach *.Chesapeake mit-Norfolk 41-Portsmouth -lit-Suffolk 's Hampton Newport News Source:Auditor of Public Accounts 32 January 13, 2015 1 1 1 I I II -26- CITY MANAGER'S BRIEFING COMPARATIVE INDICATORS (Continued) Virginia Beach has the highest percent of waste stream recycled: PERCENT OF WASTE STREAM RECYCLED 45.0% 40.0% 11% 35.0% ...,,,.. 30.0% 26.3% 25 0' 2 0% 2o&' ISA% II I II 6.4% ot io Virginia Beach Chesapeake Norfolk Suffolk Portsmouth ki 2°13 Source:Hampton Roads Planning District Commission I3 \AV Cli CII\IV\IV\II arczu:"%a%acal, 417WWW%gt:44 % of Nki, of Ntk a%t3N:447 • oititko .. 0 ‘ ,01 ‘ 01.1, FAMILY AND YOUTH OPPORTUNITIES January 13, 2015 I I i i -27- CITY MANAGER'S BRIEFING COMPARATIVE INDICATORS (Continued) Virginia Beach is the second lowest expenditure for health and welfare: HEALTH AND WELFARE EXPENDITURES PER CAPITA 1$60o ___ _._.. ....... $500 $200 $0 2007 2008 2009 2010 2011 2012 2013 Fiscal Year -.»Virginia Beach Chesapeake -*-Norfolk -N-Portsmouth -W-Suffolk µ: Hampton Newport News Source:Virginia Auditor of Public Accounts 35 Virginia Beach continues to have the lowest poverty rate in the Region: POVERTY RATE INDIVIDUALS 25.0% 22.4% 21.3% 20.0% 17.6% —5.7% 15.0% 10.0% 8.8% 3q —9.5% 5.0% Virginia Chesapeake Norfolk Portsmouth Suffolk Hampton Newport Beach News El 20.12 ®2013 Source:Census Bureau-American Community Survey 36 January 13, 2015 1. -28- CITY MANAGER'S BRIEFING COMPARATIVE INDICATORS (Continued) Virginia Beach continues to have the lowest percent of residents receiving SNAP benefits; however, this has been rising for all of the cities in the Region: PERCENT OF RESIDENTS RECEIVING SNAP BENEFITS 30.0% 25.0% 20.0% ....... _. _ __.... 10.0% ___^' ... .•.y _._ ..a_. 0.0% 2007 2008 2009 2010 2011 2012 2013 Fiscal Year .4—Virginia Beach.*.Chesapeake -l-Norfolk -X-Portsmouth -0-Suffolk Hampton Newport News Source:Virginia Department of Social Service,US Census Bureau,Weldon Cooper Center 37 Virginia Beach continues to have the lowest percent of students eligible to receive free or reduced priced lunch: STUDENTS ELIGIBLE TO RECEIVE FREE OR REDUCED PRICE LUNCH 80.0% 70.0% 60.0% -- .99.0.941•0".". ...., 50.0% 40.0% _... 362%... 30.0% 20.0% 10.0% 0.0% 2007 2008 2009 2010 2011 2012 2013 2014 School Year -e-Virginia Beach.4-Chesapeake -4-Norfolk 49--Portsmouth -0-Suffolk Hampton Newport News Note:The 2012 figure for Virginia Beach is corrected from prior years of this report Source:Virginia Department of Education 38 January 13, 2015 CITY MANAGER'S BRIEFING COMPARATIVE INDICATORS (Continued)-29- awww%ts.7%g aa ' a v#4, isfwo..., Ar., # 1414a% a%1 CULTURAL AND RECREATIONAL OPPORTUNITIES PARKS, RECREATION, AND t CULTURAL j EXPENDITURES PER CAPITA -- $250 _ .r ._ $150 .._. a " .. 8 -.. .. 1.. $152.31 $100 $50 $0 2007 2008 2009 2010 2011 2012 2013 Fiscal Year -a-Virginia Beach-M-Chesapeake -10-Norfolk -$-Portsmouth -Mf-Suffolk =°:`i=Hampton Newport News Source:Virginia Auditor of Public Accounts 40 January 13, 2015 1 1 -30- CITY MANAGER'S BRIEFING COMPARATIVE INDICATORS (Continued) Virginia Beach has the lowest percent of adults who had no exercise in the past month: ADULTS NOT MEETING PHYSICAL ACTIVITY RECOMMENDATIONS I IN THE PAST 3o DAY 60.00 55.0% 55.01, 52.0% 51.0% ;z 0% 5i.0% 5l.0% 50.0% 50.0% 45.a Virginia Chesapeake Norfolk Portsmouth Suffolk Hampton Newport Sr ni, News Source:The Virginia Atlas of Community Health 41 a%awww%4 %,e7%a%aw%a a%a%aw%hof%4 %a%47%tnalz4.1.11 0 , 0 , 0 , 0 , 0 , QUALITY ORGANIZATION January 13, 2015 -31- CITY MANAGER'S BRIEFING COMPARATIVE INDICATORS (Continued) Council Lady Henley is leading the Taskforce reviewing the Elderly Tax Relief program. Below is a comparison of Elderly Tax Relief programs: COMPARISON OF ELDERLY TAX RELIEF PROGRAMS FY 2014-15 c _ I h 49 i4 %Jabgm�i Chata.ry pto xisNewPo K 0311ottO1 ,T' 3iV sisraice Exemption Program Yes Yes No No r Yes No Yes Offered Maximum Income to $48,009 $22,000 N/A N/A $21,000 $44,359 $28,611 Receive l00% Exemption Freeze Program Yes Yes Yes No Yes No No Offered Income Range So to $44,001 to $o toN/A $30,001 to N/A N/A for Freeze $68,293 $62,000 $50,000 $50,000 Deferral Program Yes No Yes Yes No No - Yes Offered Income Range $0 toN/A Soto So to Soto N/A N/A for Deferral $68,293 $50,000 $50,000 $67,000 Compiled by Virginia Beach Commissioner of the Revenue's Office 13 Virginia Beach is the lowest in the Region for total government expenditures per capita which reflects the City's efficiency as well as the administration and management of the Budget: TOTAL OPERATING EXPENDITURES PER CAPITA EXCLUDES ENTERPRISE ACTIVITIES, DEBT AND CAPITAL $4,000 $3,400 - .._. .:._. $3,100 $2,800 • - ....... ..:__ .__. ... _ $2,500 2007 2008 2009 2010 2011 2012 2013 Fiscal Year ....-Virginia Beach -111-Chesapeake -tn-Norfolk -0-Portsmouth -M-Suffolk-Hampton Newport News Source:Virginia Auditor of Public Accounts 44 January 13, 2015 -32- CITY MANAGER'S BRIEFING COMPARATIVE INDICATORS (Continued) The chart below includes operations, capital, debt and enterprise activities: TOTAL EXPENDITURES PER CAPITA INCLUDES OPERATIONS, CAPITAL, DEBT,AND ENTERPRISE ACTIVITIES $6,000 $5,o00 _ $4,000 $3,000 _...... ___.... - $2,000 2007 2008 2009 2010 2011 2012 2013 Fiscal Year -A-Virginia Beach -*.Chesapeake -lb-Norfolk -1-Portsmouth -al-Suffolk Hampton Newport News Source:Virginia Auditor of Public Accounts 45 Virginia Beach is the only City in the Region with an AAA Bond Rating BOND RATING 2014 Virginia Newport Beach Chesa•eake Norfolk Portsmouth Suffolk Ham.on News Standard&Poor's AAA AAA AA+ AA AA+ AA+ AA+ Mood's Aaa Aal Aa2 Aa2 Aa2 Aal Aal Fitch AAA AAA AA+ AA AA+ AA+ Data NA Source:Each City's 2014 CAFR(Norfolk is from 2013 CAFR) 46 January 13, 2015 li -33- CITY MANAGER'S BRIEFING COMPARATIVE INDICATORS (Continued) The Citizens greatly value the City in appearance and it being a safe and good place to live: ,CITIZEN SURVEY DECEMBER 2013 93.8%are satisfied with City services overall >92.3%are satisfied with the appearance of the City 96.0%believe Virginia Beach is a good place to live x 94.8%believe Virginia Beach is a safe place to live 47 In conclusion, Virginia Beach is a low cost provider per capita in the Region, as well as has the lowest overall tax rates in the Region and the Citizens value the services the City provides: CONCLUSIONS Overall,low cost provider per capita in the region ,Low overall tax rates compared to the region ',Citizens value the services the City provides 48 Mayor Sessoms expressed his appreciation to Mr. Bradley and the entire Management Services Department for their dedication to management of budgeted funding as well as the research provided for various reports such as this one. January 13, 2015 i I -34- CITY MANAGER'S BRIEFING DREDGING HURDS COVE NEIGHBORHOOD SSD 5:10 P.M. Mayor Sessoms introduced and welcomed David L. Hansen, Deputy City Manager. Mr. Hansen expressed his appreciation to City Council for their continued support on these projects: Neighborhood Cren r din Pre-Adoption Briefing for City Council Herds Cove SSD January 13, 2015. Deputy City Manage]lie liansen Neighborhood l Dredging Hybrid Alternative: Individual neighborhood SSD's,specific scopes and timelines (3 cycles,i6 years) Includes City-funded Spur Channels Partnership Cost sharing(3 sources) City management of effort -formulation, funding, design,permitting,construction,maintenance Creates a viable.solution to reclaim navigation& improve water quality Supports Council'sgoal of revitalizing neighborhoods 7Y; GA �F January 13, 2015 I I � -3S- CITY MANAGER'S BRIEFING DREDGING HURDS COVE NEIGHBORHOOD SSD (Continued) With the number of neighborhoods showing interest in this program, it is clear the program is having great impact. The first six (6) listed have Ordinances adopted by City Council. The 7`/1 neighborhood listed is being briefed today. The 8`h and 9th listed are in the petition phase and the remaining neighborhoods listed have shown interest in the program: Npighborhoctds Little(1rc k 6'meE: 13 ncrtkI luev ms`s = r Bayyitle Creek West ,�._. #lelxlen love � �+-'` Pembeoke Manur � c�i*��aw Witthduck Bay 3✓ by`ti kedar l aue "'° BuehauanCreel,West , Ri.et Boren 4 �. ,eku�,�^ 4V hrope Cave Little Haven foie lCholsCreek - .. Indy(ave Witdhdu.CkCote ` y Wil,daae7c C t e r l8 h a; .Y_yW ` • January 13, 2015 -36- CITY MANAGER'S BRIEFING DREDGING HURDS COVE NEIGHBORHOOD SSD (Continued) Below are the legal considerations for this type of project. It is important to note the City requires 80% of all property owner's approval: Neighborhood - trigl Di-edgin Legal Considerations VA Code§15.2-2/103 Authorizes SSDs for navigation Minimum of 51%property owner approval Formal adoption by City Council Council preference:8o%property owner approval Funds collected must be accounted for and spent only forthis project This project will have significant savings by utilizing mechanical dredging: Neighborhood t Dredging Project Format for Hurds Cove Mechanical dredging Deposition at City's Whitehurst Dredged Material Management Area Limited pool of contractors with appropriately sized equipment-but availa s `. mss. January 13, 2015 -37- CITY MANAGER'S BRIEFING DREDGING HURDS COVE NEIGHBORHOOD SSD (Continued) The City's investment is very small for this project: Neighborhood Chanriel Dredging Life Cycle Estimated Costs City Portion Cycle Volume Cost 1,096 CY $46,212 2 767 CY $40,790 3 548CY $40,996 2,410 :,° $/27,998 (includes 5%cost escalation, zo%desgn,and navigationalaids the first cycle) Below is the Neighborhood's investment: Life Cycle Estimated Costs SSD Portion Cycle Volume Cost 31,245 CY $1,360,372 2 2.1,871 CY $1,304,467 3 15,622 CY $1,311,081 68,738 CY $3,975,922 (includes s%cost 2o%design,navigational aids in the first cycle,and designorindividual access basins) January 13, 2015 i -38- CITY MANAGER'S BRIEFING DREDGING HURDS COVE NEIGHBORHOOD SSD (Continued) Neighborhood Channel !Dredging Life Cycle Estimated Costs Individual Access Basin Construction Cycle Volume Cost 1 22,750 CY $716,625 2 15,925 CY S705,855 3 11,375 CY $709,434 ., 50,059,CY $2,131,434. Property Owners` l,1�for `n of the r individual access basins. • Below is the appropriations schedule for this SSD: Neighborhood Channel De giro Hurds Cove Appropriations Schedule Cycle Year Design Construction Access Basins 1 l $600,000 2 $808,000 $717,000 2 8 $587,000 9 $760,000 $706,000 3 g5 $589,000 16 S764i0 ' $710,000 Tot J 4776 o , $2,133,000 January 13, 2015 111 -39- CITY MANAGER'S BRIEFING DREDGING HURDS COVE NEIGHBORHOOD SSD (Continued) This project includes forty-xix(46)properties and will see a 43.8 Cent per$100 increase: Neighborhood Cal el Dredging Hurds Cove SSD Data Total SSI)assessed value: s5o,606,20a(FYi.;) 91 properties in the neighborhood district Each penny surcharge raises$5,060.62/year SSD rate covers costs for 16 year life: 3.8c/sioo of the FYi assessed value { { Average$556,112 property contribut $2,438/year Review rate atend overy 4ear Below is the Public Meeting dates held regarding the project: Neighborhood C a r lli Hurds Cove SSD Public Meetings July 18, 2013-Participants' Initial Briefing November 19,2013-City Council Briefing April 29,2014--Second Participants' Briefing January 20,2035-City Council Public Hearing January 13, 2015 -40- CITY MANAGER'S BRIEFING DREDGING HURDS COVE NEIGHBORHOOD SSD (Continued) This project received 84.6%participation: NeighborhoodChannel Dredging Hurds Cove SSD 77 of 91 district property owners signed the petition (84.6%) Ordinance to adopt and create the district is ready for your consideration Mayor Sessoms thanked Mr. Hansen and the City Staff for their work on this Project. January 13, 2015 -41- ADJOURNMENT Mayor William D. Sessoms, Jr., DECLARED the City Council Meeting ADJOURNED at 5:22 P.M. A 9d,..,6m/ A •.nda inley-Barnes'CMC Chief Deputy City Clerk '�� ' Hodges Fraser, MMC City Clerk January 13, 2015