Loading...
HomeMy WebLinkAbout032806 Resource Management PlanResource Management Plan Resource Management Plan March 28, 2006 Overview: Overview: Objectives Used to Frame Resource ? Decisions Barriers to Achieving Those Objectives ? Recommended Strategies ? Base Budget vsAbove the Base ? Capital Improvement Program ? Workshops and Public Hearings ? 2 Objectives to Frame Resource Decisions: Objectives to Frame Resource Decisions: Maintain and be able to sustain current ? community services Reduce real estate tax rate ? Adequately compensate employees ? Meet existing commitments/agreements ? Save remaining debt for strategic projects ? 3 Barriers: Barriers: Rising cost for fuel, utilities, steel, asphalt, ? and concrete Increasing demand for City services ? BRAC requirements ? State’s continued under-funding of their ? employees and programs Increasing pension and health care costs ? Existing revenue dedications to Schools, ? resort programs, SandbridgeTIF, ARP, recreation centers 4 Recommended Strategies: Recommended Strategies: Fund BRAC requirements BEFORE the 1. City/School Revenue Sharing Formula Declare $9 million of SandbridgeTIF unneeded 2. to sustain the sand replenishment program and reduce the real estate tax surcharge to 6¢ The $9 million in General Fund Balance would be split ? between the City and Schools CIP Reduce dedicated real estate funding streams 3. Agriculture Reserve Program from 1¢to 0.9¢ ? Recreation Centers from 3.8¢to 3.7¢ ? Outdoor Initiative from 0.7¢to 0.5¢ ? 5 Recommended Strategies : Recommended Strategies : (cont.) (cont.) Any reductions in funding needed are taken 4. in the CIP in each of the 6 years to protect current services Cut the real estate tax rate from current 5. $1.0239 to 99¢ Total reduction of 23¢over 3 years ? Add new programs and staff ONLY where 6. previously authorized or where new revenues are available 6 Base Budget: Base Budget: Real estate tax revenue held to FY 2006 ? amount for BOTH years of the biennium $59.3 million in year 1 and $119.6 million in – year 2 is “above the base” Base Real Estate tax rate is 86¢in Year 1 and – 76¢in Year 2 All other revenues grow by 6.1% or $67 ? million in year 1 and by an additional $30 million in year 2 7 Base Budget : Base Budget : (cont.) (cont.) Included in the “Base”are: ? Once a week trash collection and twice a month – recycling Police, Fire, and EMS services – 5 recreation centers – 11 libraries and 1 bookmobile – Maintenance of 3,486 miles of roadways – Staffing for 88 schools – Programs for disadvantaged residents – Mowing of roads and parks – Maintenance of 3,027 miles of water and sewer pipe – Court and jail services – 8 Base Budget : Base Budget : (cont.) (cont.) Not in the Base, but inthe Biennial Budget ? Local BRAC funding – Increases in compensation for City and – School employees Existing commitments – Opening new facilities – Restoring roadway landscape services – City funding for prenatal care for indigent – mothers 9 Biennial Budget: Biennial Budget: FY 2006-07FY 2007-08 Revenues Real Estate & Personal Property$ 591.2$ 663.2 ? Other Local Revenues440.9456.2 ? State483.1488.3 ? Federal106.9108.0 ? Non-local Revenues17.018.8 ? Total Revenues$ 1,639.1$ 1,734.5 Appropriations Personnel$ 1,027.5$ 1,093.0 ? Operations & CIP pay-as-you-go476.1485.9 ? City and School Debt Service124.2136.2 ? City General Reserves18.427.6 ? Reduction to School Budget-7.1-8.2 ? 10 Total Appropriations$ 1,639.1$ 1,734.5 Biennial Budget : Biennial Budget : (cont.) (cont.) Items not included in the Biennial Budget: ? Additional staff for public safety departments – Additional pay-as-you-go funding for a local transportation – program Security system for the Contemporary Arts Center – Full funding for the operation and maintenance of historic homes – Funding for redevelopment programs – An after school program for autistic children – Increase books and materials for libraries – Funding for the Minority Business Council Education and – Awareness Program Additional staff to address increasing demand for vector control – services on public property Increase cost for maintenance of infrastructure – 11 School Budget: School Budget: Reduction to School Board adopted Budget ? & CIP Reduction in the real estate tax rate from $1.0239 – to 99¢ BRAC funding before the application of the – City/School Revenue Sharing Formula Reduction in pay-as-you-go funding to CIP and its – replacement with General Fund Balance Elimination of a new project to replace one of ? the City’s oldest high schools Local contribution to School Operating ? Budget is $161 million over required level 12 Capital Improvement Program: Capital Improvement Program: The Capital Improvement Program was ? significantly impacted by increased construction costs – by the need to sustain the FY 2006 real estate – tax rate over the six year program There is a $29.5 million reduction in the ? Capital Budget from FY 2006 to FY 2007 Use of debt remains unchanged from ? current CIP 13 Capital Improvement Program : Capital Improvement Program : (cont.) (cont.) Years 1 –6 Revenues Local Revenue$ 238.4 ? State Revenue224.7 ? Bonds/Lease Purchase369.4 ? Utility Revenues & Bonds189.6 ? Fund Balance73.5 ? Other Revenues15.2 ? Total Revenues$ 1,110.8 Appropriations City General Improvements469.0 ? BRAC Compliance90.0 ? School Improvements358.3 ? Utility Improvements193.5 ? 14 Total Appropriations$ 1,110.8 Capital Improvement Program : Capital Improvement Program : (cont.) (cont.) To offset the loss of pay-as-you-go funding ? and the increases in construction costs the following projects are eliminated: Blackwaterand Chesapeake Beach Fire and – Rescue Stations Various replacement technology projects – Aquarium Elevated Crosswalk – Town Center Pedestrian Bridge – Leroy Drive Facility Replacement – Fourth Police Precinct – 15 Capital Improvement Program : Capital Improvement Program : (cont.) (cont.) New projects added: ? Oceana and Interfacility Traffic Area – Conformity and Acquisition Access Road for the new Elementary – School in Bayside SandbridgeBeach Access Improvement – and Sand Management 16 Conclusion: Conclusion: We were able to reduce the real estate tax rate ? BRAC costs, VRS, and Fuel raised the cost of – government by over 5¢on the Real Estate Tax Rate We were able to maintain current services to ? the community We were able to provide compensation to all ? employees We avoided use of debt, thereby saving the ? remaining capacity for strategic projects 17 Workshops and Public Hearings: Workshops and Public Hearings: April 11Workshop th ? April 18Workshop th ? April 20Workshop (3pm at the Convention Center) th ? April 20Public Hearing(6:30pm at Bayside High School) th ? April 25Workshop th ? April 25Public Hearing(6pm in Council Chambers) th ? May 3Reconciliation Workshop (3pm in Council rd ? Conference Room) May 9Vote on the Resource Management Plan th ? 18