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.}
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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
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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
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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
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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
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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
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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
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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
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~_e.~__~
Meyera E. Oberndorf
Mayor
uth Hodges Smith, MMC
City Clerk
City of Virginia Beach
Virginia
May 6, 2004