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HomeMy WebLinkAboutMAY 6, 2006 MINWKSHOP MINUTES VIRGINIA BEACH CITY COUNCIL Virginia Beach, Virginia 6 May 2004 Mayor Meyera E. Oberndorf called to order the CITY MANAGER'S WORKSHOP re RECONCILIATION of the FY 2004-2005 RESOURCE MANAGEMENT PLAN in the Council Conference Room, City Hall, on Thursday, May 6, 2004, at 4:00 P.M. Council Members Present: Harry E. Diezel, Margaret L. Eure, Vice Mayor Louis R. Jones, Reba S. McClanan, Mayor Meyera E. Oberndorf, Jim Reeve, Peter W Schmidt, Rosemary Wilson and James L. Wood Council Members Absent: Richard A. Maddox [Attending Mass Transit Conference, in Denver, representing the Hampton Roads Transportation District} RonA. Villanueva [Attending Asian Pacific American Institute for Congressional Studies Leadership Academy, one of eight elected officials from around the Nation.} - 2- RECONCILIATION WORKSHOP FY 2004-2005 RESOURCE MANAGEMENT PLAN 4:00 P.M. ITEM # 52484 Catheryn Whitesell, Director - Resource Management, advised additional funds have been received from the State. The State raised sales tax 1/2% and dedicated one-half of that to localities for either education or tax relief Utilizing these funds along with additional deed recordation tax funds from the increase in the recordation level (Virginia Beach receives one-third of these funds), a balanced package has been presented in terms of senior citizen tax relief, rate relief and restoration of some of the previously "cut" city services. For Virginia Beach, this is approximately $8.2-MILLION in revenue. Ms. Whitesell detailed the options presented in the Mayor and Vice Mayor's letter to City Council (said letter is hereby made a part of the record) : 1. Provide predominately for increased school construction funding $ 929,949 $ 7.333.491 $ 8,263,440 Elderly/Disabled tax relief SchoolConsuuction 2. Provide for an even split between school construction and tax relief $ 929,949 $ 3,100,000 $ 4.233.491 $ 8,263,440 Elderly/Disabled tax relief 1 cent reduction in the Real Estate Tax rate School Construction (Virginia Beach Middle School site acquisition) 3. Provide only tax relief $ 929,949 $ 7.333.491 $ 8,263,440 Elderly/Disabled tax relief 2.36 cent reduction in real estate tax rate The State has adopted one-half their Budget and are now working on the expenditure side. The other 1/4 percent of the1/2 percent increase in sales tax could come totally to education K-12. Mrs. Whitesell referenced the Resolution adopted by the Virginia Beach School Board: regarding the School Board's Intention to Enhance Funding of the Six-Year Capital Improvement Program. Said Resolution is hereby made a part of the record. In additional to the Sales Tax increase, the City will be receiving an additional $1. 26-MILLION in Deed Recordation taxes due to the State's increase in this revenue. Tje City Staff proposes combining this revenue with a decrease in cost to achieve the Emergency Response System improvements and other cost decreases throughout the budget to fund some of the service reductions identified in the Proposed Operating Budget. The reduced cost for the Emergency Response System improvements relates to refinements in job classification levels made by staff that lowered the salary costs of the new positions. The City will still add twenty-four paid paramedics, four paid EMS supervisors, one battalion Chief in the Fire Department and volunteer incentives to this critical service. May 6, 2004 - 3 - RECONCILIATION WORKSHOP FY 2004-2005 RESOURCE MANAGEMENT PLAN Funding a total of $1,579,951 could be allocated to restore the following: Consumer Affairs Office in the Commonwealth's Attorney's Office $ 347,996 Sunday hours at Kempsville and Princess Anne Libraries $ 143,053 Additional staff at the Oceanfront Library. This will provide sufficient staff to address all service areas as well as safety concerns six days per week at this high volume library $ 82,838 Additional stafffor the Development Services Center in Planning. $ 116,386 This will improve the services provided to the development community and will reduce the turn-around time for staff review of plans and permits Staff for the Commissioner of Revenue's Office, as well as funding for a $ 213,000 document imaging system to allow more efficient document storage and retrieval Continuation of the Community Color Project will providefundingfor $ 55,000 the following projects Plaza Trail medians, Rosemont Boulevard Medians, and replacement of plantings lost due to Hurricane Isabel Position for Grant Management in Management Services, The City is $ 48,055 continuing to actively pursue grant funding for various programs and projects. This position would provide oversight to the process to ensure that grants are meeting strategic objectives and are within the City's ability to provide match commitments Landscape services for various parks and building. This will ensure that the City can maintain the quality of services we currently enjoy $ 156,296 Three of the eighty-one (81) eliminated drop-off recycling centers. These $ 20,000 centers are located at Landstown Transfer Station, First Landing State Park and the Landfill Il This will provide geographically dispersed centers at staffed locations. Having existing staff monitor these sites will prevent some of the complaints on the unmanned sites. Restorefundingfor Economic Development advertising to its current level $ 63,951 Custodial services to the various municipal buildings, as well asfull service $ 259,214 at the City's new Emergency Communications Center Increase funding in the General Fund reserve for contingency. The general $ 74,162 fund reserve is at $937,598. Normally it would be at $1.5-MILLION This funding will bring the reserve to $1,011, 769 and will address items such as the funding for the Magna Carta Exhibit costs, if they occur TOTAL $ 1.579.951 May 6, 2004 -4- RECONCILIATION WORKSHOP FY 2004-2005 RESOURCE MANAGEMENT PLAN The final adjustment recommended would transfer $250,000 in capital project appropriation-to-date funding from Buckner Road Extended to Baker Road Extended to advance the design of Baker Road Extended. Charles W. Meyer, Chief Operating Officer, advised re evaluation of options for compensation in relation to the implementation of the Emergency Response System (ERS). City Council will be briefed during the May 18, 2004, Workshop on the implementation plan. Mr. Meyer distributed the recommendation on completion. In lieu of stipends, fire personnel would be placed into a higher pay range if they hold medic level certification. This approach would lend itself to greater stability and provide appropriate recognition to the medic level skill. Emergency Medical Response System paramedics would be paid one pay grade lower than fire personnel with the medic level skills. The proposal also continues the recommendation to pay officers a stivend 0[$1,900. Recommended ERS Pay Structure Title Minimum Maximum Range Fire Deputy Chief $ 68,146 $102,220 A-20 EMS Deputy Director $ 61,811 $ 92,716 A-18 Fire District Officer $ 58,833 $ 88,250 A-17 EMS Division Ofjicer* $ 53,300 $ 79,950 A-15 Fire Battalion Officer** $ 53,300 $ 79,950 A-15 Brigade Officer $ 48,287 $ 72,431 A-13 Fire Captain * * $ 48,287 $ 70,016 G-28 Master Firefighter/Medic $ 43,745 $ 63,431 G-26 Senior Paramedic $ 41,638 $ 60,375 G-25 Master Firefighter $ 41,638 $ 60,375 G-25 Firefighter/Medic $ 39,631 $ 57,465 G-24 Paramedic $ 37,721 $ 54,696 G-23 Firefighter $ 35,904 $ 52,061 G-22 EMT - Intermediate $ 34,174 $ 49,552 G-21 Proposed new Positions are highlighted. * Range Change Requested for Title **Add Stipend of$1,900for Medic -Firefighters with the Intermediate or Paramedic level certification are recognized -Master Firefighters with the Paramedic level certification are recognized -Paramedic max salary is $2,635 above that of a Firefighter with no certifications - While still on the low side, the Paramedic's salary is more consistent with the market -EMT Intermediate is added to allow for hiring someone with basic abilities (not a paramedic) -A stipend would be paid for Fire Captains (and above) who have the Paramedic certification May 6, 2004 -5- RECONCILIATION WORKSHOP FY 2004-2005 RESOURCE MANAGEMENT PLAN The addition of twenty-four (24) Paramedics and four (4) Supervisors for a total of twenty-eight (28) positions has been proposed. The 24 Paramedic positions would be deployed in zoned vehicles. The concept of always having at least eight (8) staffed ambulances available at rescue stations to respond to emergency calls has been incorporated into the Plan. The intent is those ambulances would be staffed by volunteers; however, if there comes a point at which there are no volunteers available to respond and staff an ambulance, then those Paramedics normally in zone cars would be redeployed and actually operate the ambulances. However, in Creeds, the zoned vehicle would effectively be an ambulance. The City Manager advised both the December report and the ERS implication plan to be presented on May 18, 2004, is focused on performance objectives, not averages: 6 minutes or less for the first responder, 9 minutes or less for the Advanced Life Support (ALS) on scene, 12 minutes or less for the transport. Mr. Meyer advised between now and May 18th, interim measures could be reviewed to implement some GPS systems in order that ambulance crews from different portions of the City would have more information Councilman Schmidt referenced the $213,000 to staff the Commissioner of Revenue's Office, as well as fundingfor a document imaging system. Mrs. Whitesell advised with the City Council's decision to transfer Trustee Taxes, two (2) Commissioner of Revenue personnel were transferred to the City Treasurer's office, However, the entire workload associated with these individuals moved, as well. Councilman Schmidt advised the correspondence received from the Commissioner of Revenue suggested without the addition of an additional staff member, an approximate $JO-MILLION problem might result pertaining to achieving current assessments. Mrs. Whitesell advised the Commissioner of Revenue would prefer the restoration of 3.3 Full Time Employees plus the imaging system. Resource Management utilized the request of Councilman Schmidt two (2) Revenue Agent II positions be restored as the base line for the proposal. It would encompass approximately another $20,000 to add the other 1.3 positions, as they are mostly part time. The Commissioner of Revenue 's Operating Budget could again be reviewed once the State Compensation Board Budget is received. Council Lady Wilson recommended the addition of the six (6) ladder captains, Council Lady Wilson referenced the City Page and inquired whether the number of times this Page is printed could be reduced. Mrs. Whitesell advised a cost, based on volume, has been receivedfrom The Virginian Pilot, thus the actual savings would only be approximately $38,000, ifpublication of the City Page is decreasedfrom twice to once a month. The six (6) ladder captains would entail a cost of approximately $51,000. Council Diezel concurred with the addition of the six (6) ladder captains and also wished funding re service for special education graduates identified by Councilman Schmidt. Mrs. Whitesell advised the State Operating Budget provides additional funding; however, the City is uncertain re the allocation across the State. This is a new program for Virginia Beach, which is currently a State program, one which the residents can utilize based on the number of slots allocated. Mrs. Whitesell recommended waiting refunding until this information is received and then if the City Council wishes to add additional funding, this item can be considered. This is actually a $475,000 program. Catheryn Whitesell advised the City quit havingjanitorial service to City offices in the 1990's. All employees empty their own trash cans. Therefore, this service is at a minimum level. Ms. Whitesell suggested the custodial staffing be provided for the City's new Emergency Communications Center. May 6, 2004 - 6- RECONCILIATION WORKSHOP FY 2004-2005 RESOURCE MANAGEMENT PLAN The City Manager advised relative the General Fund Reserve For Contingency. The General Fund Reserve in the proposed budget is $937,598 to address unanticipated items which City Council believes worth funding. $600,000 has already been pulled from this fund. This funding will bring the reserve to $1,011, 760. Councilman Diezel advised a $ 64-MILLION year end General Fund balance. Councilman Schmidt referenced his correspondence of April 28, 2004, requesting adjustments to the Proposed Resource Management Plan. Councilman Schmidt suggested It of the real estate tax levy be preserved to provide debt service for continuing acquisition of Open Space. Mayor Oberndorf advised this was also the suggestion of the Sandbridge Civic League. Mayor Oberndorf advised conferring with Vice Mayor Jones and the City Manager re keeping the 11N in the Agricultural Reserve Program as the value of land is increasing. Mayor Oberndorf believed this funding would be an excellent source for AICUZ to impede further encroachment into Oceana. Ms. Whitesell advised the 1.5if funding was raised for the Agricultural Reserve Program. The dedication was predicated on the ability of the 1. 5if to raise $3-MILLION in revenue. At that time, each penny of the real estate tax only raised $1. 7-MILLION Now $3. I-MILLION is raised. In determining this amount, the staff made key assumptions of interest rates paying 4%., worse case scenario 7. 'lS% re ARP, estimated land values will double up to the year 2037. By the year 2037, at a 1 if rate the Agricultural Reserve Program (ARP) fund will have $104-MILLION available beyond the anticipated double use. Other marketing factors are impacting the program now. With the land values, residents are finding it more advantageous to sell their property than to sell the development rights. Council Lady Eure advised City Council commitments had been made to develop some of the open space for recreational areas. Development of recreational areas would also entail ongoing maintenance costs. There are many new regulations relative playgrounds. Council Lady Wilson referenced the three (3) alternatives derived from the additional sales tax revenue from the State. Ms. Whitesell advised if Option 3 is amendedfrom 2.36if to allow a 2.50if reduction in the real estate tax rate, cost would be $7.9-MILLION Relative Project 9-038, the Economic Development Investment, Ms. Whitesell advised this project was intended to provide funding for City Council driven projects which required City contributions in terms of infrastructure, i. e. 1 (jh Street Corridor. Due to increased assessments, Councilman Diezel requested the City stajJreview two (2) different levels of real estate rollbacks at the 5if and 10if level for the next year encompassing both monetary and service levels, Ms. Whitesell advised she would confer with any member of City Council re detailed questions. Councilman Schmidt referenced his correspondence relative recommendations to the Resource Management Plan. Councilman Schmidt supports the Southeastern Parkway and Greenbelt. He recommended reducing Project 2-089 Southeastern Parkway from $2-MILLION to $l-MILLION The City Manager advised over $2-MILLION was expended last year re acquisition for the Parkway. Councilman Schmidt supports the Southeastern Parkway and believes it is a vital arterial roadway to secure the City's future. Councilman Reeve suggested the Oceanfront Library be open every other Sunday, not every Sunday, reduce the funding for landscape services for various parks and buildings by one-half (recommend contacting Sheriff's office for possibly providing the same service at a reduced cost), not restorefunding in the amount of $63,951 for Economic Development Advertising, and cut by one-half the various custodial services to the various municipal buildings. This resulting funding and other funding from the General Reserve for Contingencies would allow the City to have the 2.50 cent real estate tax reduction. May 6, 2004 - 7- RECONCILIATION WORKSHOP FY 2004-2005 RESOURCE MANAGEMENT PLAN Correspondence of Council Members Maddox and Villanueva, relative their positions on the Resource Management Plan are hereby made a part of the record. Vice Mayor Jones advised Council Members Maddox and Villanueva, although not in attendance, indicated their preference for Option 2. The City Manager advised the Schools have programmed $I2.5-MILLION for the Middle School site acquisition. All the alternatives reviewed reflect considerably more funds are required. The property values in this area are dramatically increasing. Vice Mayor Jones advised the additional funds recommended in Option 2 are needed to purchase the Middle School site. Mayor Oberndorf polled the City Council as to their preferred Option: OPTION 2 Vice Mayor Louis Jones, Council Members Harry Diezel and James Wood Provide for an even split between school construction and tax relief $ 929,949 $ 3,100,000 $ 4.233.491 $ 8,263,440 Elderly/Disabled tax relief 1 cent reduction in the Real Estate Tax rate School Construction (Virginia Beach Middle School site acquisition) OPTION 3 Mayor Meyera Oberndorf, Council Members Margaret Eure ( change in reduction to 2.50 cents, iffeasible), Reba McClanan (change in reduction to 2.50 cents, if feasible), Jim Reeve (change reduction in real estate to 2.50 cents, willing to adhere to 2.36 cents), Peter Schmidt, Rosemary Wilson (change reduction in real estate to 2.50 cents). Provide only tax relief $ 929,949 $ 7.333.491 $ 8,263,440 Elderly/Disabled tax relief 2.36 cent reduction in real estate tax rate The City Manager advised the difference between a 2.36 cent and 2.50 cent reduction re real estate tax rate on a $200,000 home equates to approximately $2.92 a year. A Resolution ESTABLISHING a Task Force to study the implementation of a Biennial City Budget for fiscal planning purposes has been scheduledfor the City Council Session of May 11,2004. May 6, 2004 - 8- Item IV. ADJOURNMENT Mayor Meyera E. Oberndorf DECLARED the Special Formal City Council Session ADJOURNED at 6:35 P.M. ~~;!:~c-- Chief Deputy City Clerk - ~_e.~__~ Meyera E. Oberndorf Mayor uth Hodges Smith, MMC City Clerk City of Virginia Beach Virginia May 6, 2004