No preview available
HomeMy WebLinkAboutAPRIL 15, 2003 BRIEFING MINCITY COUNCIL M~4 YOR MEYER,4 E OBERNDORF, At-Large VICE MAYOR LOUIS R JONES, Baystde -Dtstrtct 4 H,4RRY E DIEZ, EL, Kempsvdle -Dtstrtct 2 MARGARET L EURE, Centervtlle -Dtstrtct 1 REBA S McCLANAN, Rose Hall -Dtstrtct 3 R1CHARD A MADDOX, Beach - D~trt$t 6 JIM REEVE, Princess Anne - Dtstr~ct 7 PETER W SCHMIDT, At-Large RON A VILLANUEVA, At-Large ROSEMARY WILSON, At-Large JAMES L WOOD, Lynnhaven -Dtstrtct 5 JAMES K SPORE, Ctty Manager LESLIE L LILLEE Ctty Attorney RUTH HODGES SMITH, MMC, Ctty Clerk CITY OF VIRG1NIA BEACH "COMMUNITY FOR A LIFETIME" CITY COUNCIL AGENDA CITY HALL BUILDING I 2401 COURTHOUSE DRIVE VIRGINIA BEACH, VIRGINIA 23456-8005 PHONE (757) 427-4303 FAX (75 7) 426-5669 E MAIL Ctycncl~vbgov corn 15 April 2003 I. CITY MANAGER'S BRIEFINGS - Council Chamber - 2:00 PM A, CONVENTION CENTER CONSTRUCTION MANAGEMENT STATUS REPORT James B. Ricketts, D~rector - Vmitor Bureau Bo RESOURCE MANAGEMENT PLAN FISCAL YEAR 2003-2004 City's Proposed Operating Budget - "Commumty For a L~fetime" Catheryn Whitesell, D~rector - Department of Management Services Department of Libraries Marcy S~ms, Director of Libraries ° Virginia Beach City Public Schools Timothy R. Jenney, Ph.D., Supenntendent V~ctoria Lewis, Ch~efFinanmal Officer o Compensation Fagan Stackhouse, Director - Human Resources MINUTES VIRGINIA BEACH CITY COUNCIL Virginia Beach, Virginia 15 Aprtl 2003 Mayor Meyera E Oberndorf called to order the CONVENTION CENTER CONSTRUCTION MANAGEMENT STATUS REPORT tn the City Council Conference Room, Ctty Hall Bmldtng, on Tuesday, Aprtl 15, 2003, at 2 O0 P M Counctl Members Present Harry E Dtezel, Margaret L Eure, Vtce Mayor Louts R Jones, Reba S McClanan, Rtchard A Maddox Mayor Meyera E Oberndorf, Peter IV Schmtdt, Ron A Vtllanueva and James L IVood Council Members Absent Jim Reeve Rosemary IVtlson [OUT OF THE COUNTRY/ FAMILY VA CA TION] [ENTERED 2 13 P M] School Board Members Present Jane S Brooks, A James DeBelhs, Chatrman Darnel D Edwards, Vtce Chairman Netl L Rose, Sandra Smtth-Jones, Carolyn D Weems and Lots S Wtlhams School Board Members Absent Emma L Davts, Dan R Lowe, Mtchael W Stewart and Arthur T Tate -2- C I T Y MA N A G E R 'S BRIEFING CONVENTION CENTER CONSTRUCTION MANAGEMENT STATUS REPORT 2:00 P.M. ITEM # 51049 Mr dames B Rtcketts, Dtrector- Conventton and l/tsttor Development (soon to be Conventtons and Vtsttor's Bureau), advtsed the purpose of the brtefing ts to provtde a status report re the Convention Center Mr Rtcketts referenced information distributed concermng the status, next steps for land acquisition, information relative the Budget (which is balanced); a project schedule and a listing of seven (7) unfunded items requesting City Council's ranking Satd tnformatton ts hereby made apart of the record Members of Pubhc Works and dtm Lawson, Real Estate, were tn attendance to respond re land acqutsttton Mr Rtcketts advised a Pubhc Open House was held at the Pavthon on February 12, 2003, with one hundred twenty-stx (126) attendees A model of the Conventton Center was dtsplayed The purpose of the model ts to transport tt to trade shows, etc When not betng utthzed by sales staff, tt wtll be avatlable at the Pavthon A stmple logo for the Convention Center and Vtrgtnta Beach Conventton and Vtsttors Bureau, ts now a "work tn progress" A virtual tour of the proposed Conventton Center wtll also be formulated An Event Planner has been hired to organize the Groundbreakingfor the Convention Center on June 26, 2003, at 3:00 P.M. Mr Rtcketts tntroduced dack Rogers, Turner Construction Mr Rogers expressed apprectatton on behalf of Turner Constructton, TechCon and Sussex Development, to Ctty Counctl for allowtng them to be a part of thts exctttng project Mr Rogers tntroduced Mark Mtranda, Vtce Prestdent and Regtonal Operattons Manager -Mtd Atlanttc Regton, Turner Construction, Albert Adams, Sentor ProJect Manager - Turner Construction George Parker, President - TechCon, Inc , who will be provt&ng management staff on the project wtth the Turner Constructton team, Harry Davts, Prestdent Sussex Development, wtll also be provtdtng management staff Turner Constructton celebrated tts lOft* anniversary last year as one of the largest general budders tn the country Last year, Turner's revenue was $6.2-BILLION Over 65% of the projects were repeat chents Approxtmately 80% of the projects were performed under the Constructton Management Rtsk Method of ProJect Dehvery The matn office for the regton as well as the Public Assembly Market Segment group are housed tn Arhngton, Vtrgtnta Mr Rogers dtsplayed power potnt deptcttons of the various Convention Centers around the Umted States and overseas, whtch have been completed utthztng the Public Assembly Market Segment E g }Vtlhams ts the stte contractor Mr Rogers tntroduced Letgh Breslau, Destgn Partner -Sktdmore, Owtngs and Merrtll LLP (SOM), who described the destgn and &splayed the Convention Center Model BY CONSENSUS, the staff shall move forward wtth the destgn and schedule A status report shall befurntshed to Ctty Counctl tn June or July April 15, 2003 -3- C I T Y MA N A G E R 'S BRIEFING RESOURCE MANAGEMENT PLAN FISCAL YEAR 2003- 2004 City's Proposed Operating Budget- "Community for a Lifetime" ITEM # 51050 3:54 P.M. Catheryn Whttesell, Dtrector- Management Servtces, advtsed the Quality Education for Lifelong Learning is comprised of the Departments of Education and Libraries The overwhelming funding goes to the School system The Bustness Area ts comprtsed of approximately $632-MILLION, approxtmately $39-MILLION tn debt servtce $5 3-MILLION goes to the Capttal Improvement Plan (CIP) and pay-as-you-go There ts approxtmately $40-MILLION tn other financmg sources tn the Quahty Educatton for Ltfelong Learnmg Bustness Area portton of the Capttal Improvement Plan Thts Business Area represents 51 8% of the total Operating Budget and 23 3% of the total Capttal Budget Thts area mcludes 10,217 FTE's for the School system and 243 3 FTE's to support the pubhc hbrartes Fundmgfor thts Bustness Area ts a combtnatton of local, state and federal revenues Relattve the School's Operattng Budget, the Supertntendent's Esttmate of Need Budget was wtthtn locally avatlable revenue. After the Real Estate Assessor, Jerald Banagan, made hts assessment report tn February, Resource Management adjusted the level of real estate taxes shghtly and this adjustment provtded the School System with an addtttonal $381,000 The cost of debt service for both Ctty and Schools was also adjusted based on the most recent bond sale whtch provtded a lower tnterest rate than used forplanntngpurposes Thts lowered the School's debt servtce cost by $1 1-MILLIONInformatton was recetved from the Vtrgtnta Muntctpal League whtch tndtcated the State's sales tax number could be adjusted upwards based on the State's adopted budget Thts adjustment was approxtmately $1 4-MILLION These three (3) adjustments provtded Vtrgmia Beach Schools with an additional $2 8-MILLION to be placed tn an tnstructtonal category Thts tncreased the School's Operattng Budget from the Supertntendent's Esttmate of Needs of $529 5-MILLION to $532 3-MILLION The proposed budget for educatton includes $658 4-MILLION tn resources Not tncluded tn the proposed document to Ctty Counctl ts the support for 2 25% teacher's salary tncrease approved by the General Assembly and the Governor (effecttve January 1, 2004) The current estimates reflect this increase would provtde an addtttonal $1,980,000 It ts tmportant to remember the Ctty has provtded the School system wtth an addtttonal $20 &MILLION wtthout any commentary relattve tts utthzatton The Ctty ts provtcltng well over the requtred SOQ (Standards of Quahty) funchng level, (nearly $145-MILLION) Dr Darnel Edwards, Chairman - Virginia Beach City Pubhc Schools, advised there are real needs whtch do not fit wtthtn the formula, t e staffing challenges There are alsoprogram requtrements, securtty tssues and facthty needs whtch requtre addtttonal funds A 6%pay htke has been proposed, effective July Ftrst The Cafeterta plan would prove expenstve for the Schools and thts has been ehmtnated Student-teacher rattos are among the htghest tn the Commonwealth ,4 CNN and Money Magaztne poll last year, wtth No 1 being the highest, Vtrgtnta ranked 39 out ofthefifiy (50) states tn tax burdens imposed on tts citizens Amongfifty-one (51) large ctttes, wtth No I betng the htghest, Vtrgtnta Beach ranked 33 out of the 51 tn the tax burden tmposed on tts ctttzens Vtrgtnta Beach ranks 9~h out of140 tn per puptl expendttures Dr Ttmothy R Jenney, Supertntendent- Vtrgtnta Beach Ctty Pubhc Schools, addressed Ctty Counctl's concerns re the FY 03-04 Operattng Budget April 15, 2003 -4- C I T Y MA N A G E R 'S BRIEFING RESOURCE MANAGEMENT PLAN FISCAL YEAR 2003- 2004 City's Proposed Operating Budget- "Community for a Lifetime" ITEM # 51050 (Continued) TIMELINE REGARDING NO TIFICA TION OF ADDITIONAL REVENUES February 4 February 24 February 28 March 18 March 19 March 28 Supertntendent submtts "Esttmate of Needs" to School Board Ctty Manager and Management Servtce Dtrector share "Notes on the Issuance of General Obhgatton Bonds" School Board ts advtsed about the posstbthty of extra funds The Vtrgtntan-Pdot contacts school staff for response to Ctty Manager's letter to Ctty Councd advtstng of addtttonal funds Chtef Ftnanctal Officer recetves copy of City Manager's letter Chtef Ftnanctal Officer recetves wrttten vertficatton of revtsed revenue shartng funds Difference in School's and City's Projection of Sales Tax $500,000 $922,500 Governor's sales tax esttmate General Assembly's sales tax esttmate Comparative Increases Admtntstratton Attendance and Health Category - $ 6-MILLION Technology Commttment to Professional Development Instructton $82-MILLION Comparative Staffing Ctty COM-IT School Dtstrtct Technology Media and Commumcattons positrons 280. 6 positions 114. 6 positions Aprd 15, 2003 -5- C l T Y MA N A G E R 'S BRIEFING RESOURCE MANAGEMENT PLAN FISCAL YEAR 2003 - 2004 City's Proposed Operating Budget - "Community for a Lifetime" ITEM it 51050 (Continued) 2001-2002 Reversion Reverston March 31 ADM Federal Revenue Local Revenue Loss of Sales Tax $18 80-MILLION 2 08-MILLION $ 2 8-MILLION $ 3-MILLION $ 3 3-MILLION $ I 88-MILLION 2001-2002 Savings Personnel and Fringe Benefits Non-personnel costs Actual over new revenue $10 2-MILLION $ 6 2-MILLION $ 57-MILLION *Net Dtfference of new revenue $1 88-MILLION Total $1 & 85-MILLION Dr Jenney hsted expenchtures from Reverston Funds and depicted the evtdences of success Academtes and Year-Round School program Vtctorta Lewts, Chtef Ftnanctal Officer -Vtrgtnta Beach Ctty Schools, detatled tnformatton relattve the FY 2003-04 School Board Operattng Budget Comparison to FY 2002/03 $507,603,409 Operating Budget Esttmate of Needs Ctty Managers School Board Total $ 529,499,518 $ 532,367, 761 $ 548,221,228 S tncrease $ 21,896,109 $ 24,764,352 $ 40,617,819 % tncrease 4 31% 5 27% 8 00% Aprtl 15, 2003 -6- C I T Y MA N A G E R 'S BRIEFING RESOURCE MANAGEMENT PLAN FISCAL YEAR 2003 - 2004 City's Proposed Operating Budget -"Com m unity for a Lifetime" ITEM # 51050 (Continued) SALES TAX FY 2002/03 Estimate* $ 52,225,706 FY 2003/04 Estimates Governor 12-20-02 $ 52,775,320 1.1% Growth General Assembly $ 53,697,320 2.8% Growth Average annual growth since 00/01 $336,3 77 total over period .5% growth average per year *esttmate by State for FY 2002/03 (4/11/03) School sales tax dependent on State-wtde sales tax recetpts and allocations Allocation ts dependent on the results of trtenntal census recently completed Census tndtcated a reductton tn the number of school-age children residing tn Virginia Beach Mrs Lewts ctted the reducttons from FY2002/03 Elementary Classroom (74 5 FTE's) Buses, Vehicles and other Capital Outlay Matertals and Supphers Transfers and Improvements $ 3 23-MILLION 1 32-MILLION 1 08-MILLION 0 7-MILLION Total Reducttons $ 5 70-MILLION Other Additions to FY 2002/03 Estimate of Needs Compensatzon tncrease Salary and Benefit Overhang Cafeterta Flex Credtts Other Purchased Servtces SECEP Tmtton $I 1 50-MILLION 8 16-MILLION 5 80-MILLION 1 16-MILLION 98-MILLION Total Addtttons $2 7 60-MILLION Aprtl 15, 2003 _ C I T Y MA N A G E R 'S BRIEFING RESOURCE MANAGEMENT PLAN FISCAL YEAR 2003 - 2004 City's Proposed Operating Budget- "Community for a Lifetime" ITEM # 51050 (Continued) FY 2002/03 Reductions Additions $50 7. 60-MILLION - 5. 70-MILLION + 2 7. 69-MILLION Estimate of Needs Total $529.50-MILLION FY2003/04 City Manager's to School Board Total Ctty Manager's School Board Addtttons Total School Board $532 36-MILLION 15 86-MILLION $548 22-MILLION Gretna Smith, Asststant Dtrector of Human Servtces, responded to concerns relattve the htrtng of bus drtvers and custo&ans John Kalocay, Asststant Superintendent - Department of Admtntstrattve Support Servtces, responded relattve the tssue wtth Servtce Master concerntng custodtal servtce Department of Ltbrartes was RESCHEDULED to the Ctty Counctl Workshop of Aprtl 22, 2003 Compensation was RESCHEDULED to the Cay Councd April 29, 2003, Ctty Council Workshop Aprtl 15, 2003 -8- CITY COUNCIL INFORMAL DISCUSSION ITEM # 51051 6:26 P.M. Vtce Mayor Jones advtsed Ctty Counctl at tts meettng of November 12, 2002, was asked to constder a proposed ordtnance that would have made stgntficant revtstons to the procedure by whtch the Trustee Taxes (retail meal lodging and admtsston taxes collected by businesses chrectly from patrons) are admtntstered In essence, the amendments would have co&fled the extsttng practtce by whtch the Commtsstoner of Revenue recetves the payments, whtle addtng new language to asstgn the Treasurer the responstbtltty of collecttng dehnquent accounts The ordtnance dtd not address unresolved tssues regarding the tmplementatton and coordtnatton of the assessment and collectton functtons Mayor Oberndorf appotnted Vtce Mayor Jones and Counctl Lady McClanan to serve on a commtttee to meet wtth the effected parttes, tnvesttgate the tssues and make a report wtth thetr recommendatton to Ctty Council Vice Mayor Jones and Counctl Lady McClanan revtewed theperttnent sections of the Ctty Charter, the Ctty Code and the State Code, as well as a prtor optnton on the subject prepared by the Ctty Attorney's Office To gather the necessary factual background, they also met wtth the followtng James K. Spore City Manager Leslie L. Lilley City Attorney Steven T. Thompson Chief Financial Officer Patricia A. Phillips Director of Finance David Sullivan Chief Information Officer Phillip J. Kellam Commissioner of Revenue John T. Atkinson City Treasurer Lawrence S. Spencer Associate City Attorney In thetr revtew of the Ctty Charter, the Ctty Code and the State Code, st seems clear the powers and duties of the Commissioner of the Revenue relate to the assessment of taxes by the Commissioner, while the Treasurer's duttes and powers concern the recetpt and collectton of taxes Aprtl 15, 2003 -9- CITY COUNCIL INFORMAL DISCUSSION ITEM # 51051 (Continued) The ordtnance that the Commtsstoner of the Revenue presented formahzes a practtce that has evolved over years tn whtch payment of Trustee Taxes ts made &rectly to the Commtsstoner of the Revenue It also proposes movtng collectton responstbthttes to the Ctty Treasurer Transferrtng the collection process to the Treasurer ts a step tn the rtght &rectton, but tt serves to htghhght a more fundamental tssue that the tmttal recetpt of these taxes, under current practtce and as proposed by the ordtnance, ts by an assesstng officer rather than the officer charged by state law with receiving and collecting local taxes The proposed changes wouM create a dysfuncttonal collectton system tn whtch the Treasurer would not have adequate knowledge of what he ts to collect or how much ts betng collected Wtth regard to Trustee Taxes, the relevant secttons of the Ctty Code provtde that each assessment ts a certatn percentage of the amount pard for a meal, hotel room or an admtsston Bustnesses make these assessments each month and forward the assessments and taxpayments to the Commtsstoner of the Revenue If these reports and remtttances went dtrectly to the Treasurer, he would be able to rely upon the language of the Ctty Code along wtth a report of monthly sales, to determtne, at least mtttally, whether the taxpayer has pard the proper amount Once the tax ts pard, the Commtsstoner of the Revenue ts empowered to au&t the return and determtne tf the correct amount has been reported, and tt ts beheved that audtttng bustnesses, as well as identifying businesses that should be collecting these taxes, ts the proper role for the Commtsstoner of the Revenue The proposed ordtnance changes do not solve the problem of collecttng dehnquent Trustee Taxes tn an efficient manner In fact, the proposed ordmance would co&fy the current procedure whtch ts not, tn Vtce Mayor Jones' and Counctl Lady McClanan 's optnton, acceptable Vtce Mayor Jones and Counctl Lady McClanan respect the efforts of the current Commtsstoner of the Revenue to vtgorously pursue collectton efforts, but ts apparent that the Ctty Treasurer, gtven hts statutory powers, can accomphsh more wtth less effort Furthermore, wtth a system of the Ctty Treasurer recetvtng tax payments and the Commtsstoner of the Revenue audtttng the payments, the proper system of checks and balances wtll be ensured Therefore, tt ts Vtce Mayor dones 'and Counctl Lady McClanan 's optnton that the current Ctty Code ts suffictent to provtde for the proper collectton of Trustee Taxes It ts the process of admmtstertng the receipt and collection of Trustee Taxes that needs to conform to the current Code provtstons BY CONSENSUS, Ctty Counctl DIRECTED Ctty Attorney to draft any amendments requtred to the City Code to provtde for a system tn whtch Trustee Taxes are recetved and collected by the Ctty Treasurer, wtth the Commtsstoner of the Revenue havtng the responstbthttes of dtscovertng, regtstertng and audtttng bustnesses responstble for Trustee Accounts Directed the Ctty Manager to uttltze the authortty provided by Ctty Charter 3~ 8 06 and 8 07 to create a worktng relattonshtp between the Commtsstoner of the Revenue and Ctty Treasurer that ts consistent wtth the Ctty Code and the findtngs of thts report The end result must be an effictent, effecttve system that wtll ensure the flow of tnformatton between the two vttal offices and result tn the prompt collectton of all taxes due the Ctty Aprtl 15, 2003 - 10- Item V-P. ADJOURNMENT ITEM # 51052 Mayor Meyera E Oberndorf DECL,4RED the Ctty Counctl Meettng ADJOURNED at 6:57 P.M. Chief Deputy Ctty Clerk Ruth Hodges Smtth, MMC City Clerk Meyera E Oberndorf Mayor Ctty of Vtrgtnta Beach Vtrgtnta Aprtl 15, 2003