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HomeMy WebLinkAboutMARCH 31, 1980 SPECIAL SESSION M I N U T E S SPECIAL MEETING VIRGINIA BEACH CITY COUNCIL Virginia Beach, Virginia 31 March 1980 A Special Meeting of the Council of the City of Virginia Beachi Virginia, was called to order by Mayor Patrick L. Standing, in the Conference Room, in the Administration Building, on Monday, 31 March 1980, at one o'clock in the afternoon, for the purpose of presenting the Operating Budget for Fiscal Year 1980-81; and, to recess into Executive Session for the purpose of discussing personnel matters. Certain Council appointments are necessary to meet the March 31, 1980 expirations, in accordance with Section 3.06 of the City Charter and 2-9 of the Code of the City of Virginia Beach. Council Members Present: John A. Baum, F. Reid Ervin, George R. Ferrell, Barbara M. Henley, Clarence A. Holland, Vice Mayor J. Henry McCoy, Jr., Donald W. Merrick, Meyera E. Oberndorf, J. Curtis Payne, Roger L. Riggs, and Mayor Patrick L. Standing Council Members Absent: None ITEM #14946 Mayor Standing entertained a motion to allow Council to RECESS into EXECUTIVE SESSION for the purpose of discussing the following: 1. Discussion or consideration of employment, assignment, appointment, promotion, demotion, salaries, discipline or resignation of public officers, or eriployees o.@ any public body. (Personnel Matters). Upon motion by Councilman Holland, seconded by Councilman Payne, City Council voted to RECESS into EXECUTIVE SESSION following the INFORMAL SESSION. Voting: 11-0 Council Members Voting Aye: John A. Baum, F. Reid Ervin, George R. Ferrell, Barbara M. Henley, Clarence A. Holland, Vice Mayor J. Henry McCoy, Jr., Donald W. Merrick, Meyera E. Oberndorf, J. Curtis Payne, Roger L. Riggs, and Mayor Patrick L. Standing 2- Council Members Voting Nay: @@one Council Members Absent: None ITEM #14947 Councilman Holland advised lie had requested the City Attorney to investigate the possibility of the City assessing property owners for improveinents to their EDroperty by the City. CounCilman Holland further advised the City Attorney found the City could impose assessmerits for "local improvemen-@ purposes". ITEM #14948 Councilwoman Henley requested the Department of Parks and Recreation to study the feasibility of permitting model airplane flying on a portion of the Munden Point Park. 03/31/80 -3- BUDGET PRESENTATION ITEM #14949 The City Manager advised the proposed Operating Budget for Fiscal Year 1980-81 is $202, 852, 120, which represents an a,@pa:oximate sixteen percent (16%) increase over the adjusted budget of $174,000,000. The City Manager advised he was pleased with this budget as it represents a realistic assessment ot the municipal corporation and its needs; it presents the City's programs of municipal services for the 1980-81 fiscal years; and, it details the costs for each of these services and recommended the budget be adopted. REVENUE SUMMARY From the Commonwealth $ 63,049,492 31.08% Other Local Sources (Fines, Licenses, Sale of Properties, etc.) 48,589,517 23.96 General Property Taxes 47,248,017 23.29 Other Local Taxes 29,320,731 14.45 From Federal Covernment 7,427,126 3.66 Froin Unappropriated Surplus (1979-80) 7,217,237 3.56 $202,852,120 100.00% APPROPRIATION SUMMARY School Operations $ 85,844,041 42.32% General Operations 85,179,500 41.99 Utility Operations 11,902,219 5.87 General Debt Costs 7,266,155 3.58 Utility Debt Costs 6,710,265 3.31 School Debt Costs 5,949,940 2.93 $202,852,120 100.00% The City Manager is recommendina a real estate tax rate reduction of seven cents (7cts). To the average homeowner, this reduction in the rate will mean a net tax reduction of 9.5%. The average increase in assessments is 9.3%; consequently, if City Council adopts the rec- ommded reduction, approximatel,, sixty percent (60%) of the City's taxpayers will recognize no increase or a reduction in real estate taxes paid. City Council has been able to reduce the real estate tax rate each year for the past five years; and, the City Manager further indicated he was able to recommend this reduction because of the City's excellent financial condition, and also because of the coooeration he has received from the Superintendent of Schools and his abilitv to maintain one of the lowest per pupil costs in the State while stiil adhering to the highest educational standards. 0 3/31/80 4- FACTORS ALLOWING REAL ESTATE TAX RATE REDUCTION Tourism - This continues to be a tremendous asset to our economv. The ity anticipates that this year it will receive approximately $15,500,000 in direct taxes from this source. Volunteers - The City is continuing and expanding its volunteer program and has over 5,000 people working as volunteers in activities ranging from fire fighting to senior citizen programs. Their efforts are saving the City from $10 Million to $12 Million, which otherwise would have to be budgeted. New Construction - New growth amounted to 4.36%. In spite of inflation and escallating borrowing rates, revenues derived from new construction continue to benefit the City's economy on a short term basis. The City Manager is concerned, however, that at the present time this new growth has all but stopped; but discussions with members of the building industry and home lendina institutions indicate that the City could have a complete turnaround by spring of 1981 which could possibly affect future revenues. The growth in commercial construction, such as shopping centers and office parks, continues to be very encouraging and has provided a very beneficial impact on local revenue sources. It is obvious that Virginia Beach wit@ its sound ecnonorqy is an extremely attractive location to the business community. State Assistance - The 1980 General Assemblv passed the State Budget with full funding of House Bill 599 which, in effect, is State Revenue Sharing. This will result in $3.6 Million for Virginia Beach either through reduction of local expenditures or additional state revenue. Sale of Property - Rose Hall Properties continue to be a success and the City Manager has included $1.8 Million from sale of land in this project, which will complete the City's venture into the entrepreneural world in order to preserve the historic shrine of the Francis Land House. ASSUMPTIOD,@S 1. Reduction of the real estate tax rate by seven cents (7cts). 2. Continuation of the existing tax rates in all other categories. 3. No significant decline in the present economy. 4. The use of $7.2 Million in unappropriate@, funds for 1980-81. 5. Continuation of receipt of school impact funds. 6. Rate of collection of revenues will be as anticipated. 7. Agreement with the City of Norfolk on a refuse disposal contract.* 8. Increasing water and sewer rates.** 0 3/31/80 5- *For some time, the City Manager has negotiated with Norfolk City Manager, Julian Hirst, concerning the use of Virginia Beach's landfill as a disposal site for the City of Norfolk. This budget includes the estimated revenue and expenses to provide the citizens of Norfolk this service. In order to ensure control and prevent outside firiqs from "smugqling" refuse into the City's landfill, all commercial haulers will be charged the same fee and the only haulers allowed to use our landfill will be from. Norfolk and Virginia Beach. Therefore, included in the Budget Ordinances is an ordinance to establish the rate of commercial haulers of refuse at $6.00 per ton. All cities in Tidewater except Virginia Beach now charge commercial haulers, and the City Manager believes for the City's own protection it should charge also. **In February, 1979, the consultinq firm of Buck, Siefert and Jost presented the results of a water rate study. This report stated a rate increase would be necessary during 1980. The City Manager now finds that, in order to continue the existing level of utility service, rate increases for water and sewer service will be necessary. Such increases are needed to help meet the increased cost of utility operations and to assure potential revenue bond buyers that they will receive their anticipated return and that the Utility Fund will remain self-sustaining. The 2.8% increase in the utility budget is obviously minimal, and any further reduction will have a severely adverse effect on service. The exact rate increase can only be determined after a full engineering study, which should be completed in the near future. RECOMMENDED APPROPRIATIONS Taking into consideration the economic feelings of the City Council and the taxpayers, and after considerable review, the Superintendent of Sc@-iools and the City Manager cut the departmental requests by $13 Million ($9 Million City - $4 Million Schools). The City Manager recommended increasing the mileage for Council from $40.00 to $100.00 per month, and for employees and members of Boards and Commissions from 15cts to 18-1/2cts per mile. This same action was taken in the Gene,al Assembly, and the City Manager feels it is justified to reimburse employees for conducting City business in their own vehicles. Twenty additional police officers and related equipment, plus two (2) precinct clerks to relieve police officers for other duties, are primarily responsible for the large increase. This increase is necessary to provide protection to a growing population, and to meet seasonal demands in shifts of personnel, as well as to rest)ond to the tremendous increase in requests for radar units in residential neighborhoods. Thirty new firefighters plus related equipment came as a result of discussions the City manager has had with both the Fire Chief and his staff. All indicated that their top priority was Tanpower. Granting this increase will staff the department with sufficient full-time firefighters to adequately respond to any fire situation. 0 3/31/80 6- As in pr6vious years, education continues to be the largest single expenditure in the budget. School Operations total $85.8 Million in Sch6ol Debt Costs of $5.9 million. The overall increase of 20.76% represents a 14.4% increase in local funds. The main increase in the Department of Public Works is not in man- power, but primarily reflects salary increases, inflation's effect on materials and supplies, and replacement of worn out equipment. Also included is approximately $260,000 for stoplights to attempt to satisfy the coiintless justified requests for signalization. Finally, in an effort to improve the condition of roads after utility cuts, $530,000 has been recommended for road improvements. The Citv Manager indicated previously that growth in housing construction has been a short term benefit of five percent (5%) to seven percent (7%) each year in additional local revenue. The timing of the opening of the Arts and Conference Center (Pavilion) could not have been more appropriate. The City Manager indicated he has consistently recom-mended a more diversified tax base in order to attempt to keep real estate taxes low. Without such an expansion and diversification, and with limits imposed by the General Asserably on most other sources of local revenue, the real estate tax will continue to be the source to which the Citv must turn. The City Manager further stated he believed the additional tax generated by the "thousands of delegates" attending conventions at Pavilion will help to keep Virginia Beach's real estate tax rate low. Already the City has booked conventions bringing 121,650 delegates to Vir(Tinia Beach in fiscal year 1980-81. It is estimated that the average delegate spends $100.00 a day and stays an average of three (3) days. A total of $36.5 Million generated during the "off season" when hotel rooms have traditionally been empty. The majority of the staffing (68 employees in Pavilion) will be necessary part-time service employees such as ushers, ticket takers, custodial workers and parking and first aid attendants. PAY INCREASE The majority of the remainder of the increase in the general government budget (approximately $6 Million) is devoted toward projected across-the- board increases and the first full year payment of the dental plan benefits and pay raises approved by Council last year. Because of the continuing damage that inflation is inflicting upon the purchasing power of employees, the City Manager is recomplending a two-step across-the-board pay raise effective July 1, 1980. In addition, this budget includes funds that, effective September 1, 1980, the City's revised pay and classification plan will have a "true" five percent (5%) amount between each pay step. Currently, this differential varies between 2.7% and 5.5%. 03/31/80 -7- PUBLIC HEARING The City Manager recommended he be authorized to advertise a Public Hearing on the budget for Wednesday, April 30, 1980, at 2:00 p.m.. It is anticipated that several Council worksho-ps will be scheduled. First reading of the budget should occur on Monday, Mav 5, 1980, followed by a second reading on Monday, May 12, 1980. A digest of the budget will be distributed in the April 26/27 issue of the Virginia Beach BEACON, and full copies of the budget will be available for public study at all branches of the public library system. For discussion of the budget Council will meet on Thursday, April 10, 1980, at 7:30 p.m., in the City Manager's Conference Room. City Council RECESSED into EXECUTIVE SESSION (2:12 p.m.) for briefing prior to the FORMAL SESSION in the Council Chambers. 03/31/80 - 8- F 0 R M A L S E S S I 0 N VIRGINIA BEACH CITY COUNCIL 31 March 1980 2:20 p.m. Council Members Present: John A. Baum, F. Reid Ervin, George R. Ferrell, Barbara M. Henley, Clarence A. Holland, Vice Mayor J. Henry McCoy, Jr., Donald W. Merrick, Meyera E. Oberndorf, J. Curtis Payne, Roger L. Riggs, and Mayor Patrick L. Standing Council Members Absent: None ITEM #14950 Upon motion by Councilman Holland, seconded by Councilwoman Oberndorf, City Council voted to REAPPOINT the following to the PUBLIC LIBRARY BOARD for terms of three (3) years, beginning 1 April 1980 and expiring 31 March 1983: Mrs. Marvin L. Dozier Mrs. Ira Hancock Voting: 11-0 Council Members Voting Aye: John A. Baum, F. Reid Ervin, George R. Ferrell, Barbara M. Henley, Clarence A. Holland, Vice Mayor J. Henry McCoy, Jr., Donald W. Merrick, Pleyera E. Oberndorf, J. Curtis Payne, Roger L. Riggs, and Mayor Patrick L. Standing 03/31/80 Council Members Voting Nay: None Council Members Absent: None ITEM #14951 Upon motion by Councilman Payne, seconded by Councilman Holland, City Council voted to REAPPOINT the following to the HISTORICAL REVIEW BOARD for terms of two (2) years, beginning 1 April 1980 and expiring 31 March 1982: llr. Herbert L. Smith, III Mrs. W. R. Miller Voting: 11-0 Council Members Voting Aye: John A. Baum, F. Reid Ervin, George R. Ferrell, Barbara M. Henley, Clarence A. Holland, Vice Mayor J. Henry McCoy, Jr., Donald W. Merrick, Meyera E. oberndorf, J. Curtis Payne, Roger L. Riggs, and Mayor Patrick L. Standing Council Members Voting Nay: None Council Members Absent: None 0 3/31/80 -10- ITEM #14952 Upon motion by Vice Mayor McCoy, seconded by Councilman Ferrell, City Council voted to REAPPOINT the following to the PERSONNEL BOARD: Mr. Charles W. Gardner - three (3) year term, beginning 7 March 1980 and expiring 6 March 1983 Mr. Albert Lee Bonney - three (3) year term, beginninq 7 March 1980 and expiring 6 March 1983 Mrs. Ruby Cliristian - three (3) year term, beginning 1 March 1980 and expiring 28 February 1983 Voting: 11-0 Council I-lembers Voting Aye: John A. Baum, F. Reid Ervin, George R. Ferrell, Barbara M. fienley, Clarence A. Holland, Vice Mayor J. Henry McCoy, Jr., Donald W. Merrick, Meyera E. Oberndorf, J. Curtis Payne, Roger L. Riggs, and Mayor Patrick L. Standing Council Members Voting Nay: None Council Members Absent: @lone 0 3/31/80 ITEM #14953 Upon motion by Councilman Riggs, seconded by Councilman Holland, City Council voted to REAPPOINT Mr. D. Murr4y Malbon to the MOSQUITO CONTROL CO,,24ISSION (Virginia Beach/Lynnhaven) for a term of four (4) years, beginning 5 April 1980 and expiring 4 April 1984. Voting: 11-0 Council Members @loting Aye: John A. Baum, F. Reid Ervin, George R. Ferrell, Barbara M. Henley, Clarence A. Holland, Vice Mayor J. fienry McCoy, Jr., Donald W. Merrick, Meyera E. Oberndorf, J. Curtis Payne, Roger L. Riggs, and Mayor Patrick L. Standing Council Members Voting Nay: None Council i'4embers Absent: '4one 0 3/31/80 -12- ITEM #14954 Due to the absence of the City Manaaer during the EXECUTIVE SESSION held at 2:12 p.ri., he requested Council RECESS into EXECTJTIVE SESSION for the purpose of discussing personnel matters. Upon motion by Councilman Payne, seconded by Councilman Baum, City Council voted to RECESS into EXECUTIVE SESSION for the purpose of discussing the following: 1. Discussion or consideration of employrient, assignment, appointment, promotion, demotion, salaries, discipline or resignation of public officers, or employees of any public body. (Personnel Matters). Voting: ii-O Council Members Voting Aye: John A. Baum, F. Reid Ervin, George R. Ferrell, Barbara M. Henley, Clarence A. Holland, Vice Mayor J. Henry McCoy, Jr., Donald W. Merrick, Meyera E. Oberndorf, J. Curtis Payne, Roger L. Riggs, and Mayor Patrick L. Standing Council Members Voting Nay: None 03/31/80 -1 3- Council Merbers Voting Nay: None Council Me@ers Absent: None ITEM #14955 City Council reconvened in open session and upon motion by Councilman Riggs, seconded by Councilman Baum, ADJOURNED the meeting at 3:05 p.m. Diane M. Hickman, Deputy ity Clerk Ru-th Hodges S'mith, City Clerk Mayo@'Patrick L. Standingi City of Virginia Beach, Virginia Special Meeting 31 March 1980 h 0 3/31/80 I