HomeMy WebLinkAbout032707 Resource ManagementResource Management Plan
Resource Management Plan
FY 2006-07 through FY 2007-08
FY 2006-07 through FY 2007-08
Second Year Amendments
Second Year Amendments
Biennial Budget
Biennial Budget
% Change% Change
FY 2007FY 2008ProposedFY 2008fromfrom
AdjustedApprovedAmendmentsAmendedApprovedFY 2007
Revenues:
Real Estate$ 463.6 $ 528.9 $ (13.7)$ 515.2 -2.6%11.1%
Other Local Taxes$ 569.2 $ 591.2 $ (12.8)$ 578.4 -2.2%1.6%
State$ 485.5 $ 488.3 $ 29.5 $ 517.8 6.0%6.7%
Federal$ 107.5 $ 108.0 $ 3.0 $ 111.0 2.8%3.3%
Other Revenues$ 17.8 $ 18.5 $ 1.6 $ 20.1 8.6%12.9%
Total Revenues:$ 1,643.6 $ 1,734.9 $ 7.6 $ 1,742.5 0.4%6.0%
Appropriations
Personnel$ 1,027.3 $ 1,089.1 $ 1.3 $ 1,090.4 0.1%6.1%
Operations$ 416.5 $ 432.2 $ 4.7 $ 436.9 1.1%4.9%
CIP Pay-go$ 64.7 $ 60.5 $ 3.5 $ 64.0 5.8%-1.1%
City & School Debt Service$ 135.1 $ 153.1 $ (1.5)$ 151.6 -1.0%12.2%
Reduction to School Budget-$ -$ (0.4)$ (0.4)--
Total Appropriations:$ 1,643.6 $ 1,734.9 $ 7.6 $ 1,742.5 0.4%6.0%
2
Hampton Roads Tax Rates
Hampton Roads Tax Rates
Real Estate Rate Reduction
Real Estate Rate Reduction
City
City
Tax Ratesince 2004
Tax Ratesince 2004
Chesapeake$1.1117¢
Chesapeake$1.1117¢
Norfolk$1.2713¢
Norfolk$1.2713¢
Newport News$1.207¢
Newport News$1.207¢
Portsmouth$1.2817¢
Portsmouth$1.2817¢
Virginia Beach93¢29¢
Virginia Beach93¢29¢
Hampton$1.1413¢
Hampton$1.1413¢
Suffolk94¢14¢
Suffolk94¢14¢
Proposed FY 2008 rates shown in bold/yellow
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Other Points on Real Estate Taxes
Other Points on Real Estate Taxes
On average 4-6% of family income will go towards all
On average 4-6% of family income will go towards all
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local taxes.
local taxes.
In Virginia Beach 5.3 cents of the real estate tax covers the
In Virginia Beach 5.3 cents of the real estate tax covers the
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cost of trash collection. In other cities, in addition to
cost of trash collection. In other cities, in addition to
higher real estate tax rate, families have to pay a fee.
higher real estate tax rate, families have to pay a fee.
Due to the recreation center referendum, 3.5 cents of the
Due to the recreation center referendum, 3.5 cents of the
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real estate tax rate supports the operation of these facilities.
real estate tax rate supports the operation of these facilities.
A family of four would pay $122 in real estate taxes + $154
A family of four would pay $122 in real estate taxes + $154
in membership fees. If charged on a fee basis each family
in membership fees. If charged on a fee basis each family
member would pay nearly $500 per year.
member would pay nearly $500 per year.
4
Other Revenues
Other Revenues
Changes to Personal Property Tax Rates:
Changes to Personal Property Tax Rates:
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Personal Boats from $0.000001 per $100 to $1
Personal Boats from $0.000001 per $100 to $1
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Recreational Vehicles from $1.50 per $100 to $1
Recreational Vehicles from $1.50 per $100 to $1
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Commercial Boats from $1.50 per $100 to $1
Commercial Boats from $1.50 per $100 to $1
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Airplanes from $1.50 per $100 to $1
Airplanes from $1.50 per $100 to $1
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State revenues are up $29 million predominately
State revenues are up $29 million predominately
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due to the shift of local telecommunications tax
due to the shift of local telecommunications tax
revenues to the State.
revenues to the State.
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Where it goes . . .
Where it goes . . .
Service Areas
Public Safety
Debt Service
11%Transportation
9%
3%
Trash Collection
2%
Building &
Infrastructure
Maintenance
15%
Functional Areas
Learning
Museums,
39%
Recreation,
Open Space
Debt Service
4%
9%
Health & Human
CIP Pay-go
Services
4%
Economic
Financial & 8%
Vitality
Administration
4%
5%
Operations
25%
Personnel
62%
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GASB 45
GASB 45
Health Care Liability for current employees
Health Care Liability for current employees
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when they retire (based on current policy)
when they retire (based on current policy)
Estimated annual cost = $19 million
Estimated annual cost = $19 million
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First payment due June, 2008 (at the end of
First payment due June, 2008 (at the end of
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this budget)
this budget)
Funding
Funding
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?
CitySchools
CitySchools
Budget = $5.5 millionBudget = $4.5 million
Budget = $5.5 millionBudget = $4.5 million
FY 06 Balance =$3.5 millionFY 06 Balance = $4.5 million
FY 06 Balance =$3.5 millionFY 06 Balance = $4.5 million
Total City = $9 millionTotal Schools = $9 million
Total City = $9 millionTotal Schools = $9 million
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Elderly and Disabled Tax Relief
Elderly and Disabled Tax Relief
$14,000,000
$12,000,000
$10,000,000
$8,000,000
$6,000,000
$4,000,000
$2,000,000
$0
979899000102030405060708
Fiscal Year
Council policy is to increase the program thresholds by
Council policy is to increase the program thresholds by
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existing assessment growth.
existing assessment growth.
Of the 18,000 elderly households nearly 6,000 will be
Of the 18,000 elderly households nearly 6,000 will be
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participating in tax relief for the elderly.
participating in tax relief for the elderly.
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Utility Costs
Utility Costs
Electrical costs are going up 16% or $4.7 million
Electrical costs are going up 16% or $4.7 million
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due to deregulation . . .the General Assembly took
due to deregulation . . .the General Assembly took
action to protect residential customer, but not
action to protect residential customer, but not
commercial.
commercial.
Both City and Schools are undertaking energy
Both City and Schools are undertaking energy
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audits through a performance contract where
audits through a performance contract where
energy savings offset costs incurred for new
energy savings offset costs incurred for new
equipment/renovations.
equipment/renovations.
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Compensation
Compensation
Budget includes 3.75% increases for instructional
Budget includes 3.75% increases for instructional
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personnel and 5% for non-instructional as approved by the
personnel and 5% for non-instructional as approved by the
School Board.
School Board.
City employees can expect a 1.5% general increase, a 2%
City employees can expect a 1.5% general increase, a 2%
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merit, and compression adjustments.
merit, and compression adjustments.
City just completed a market survey and 196 titles will be
City just completed a market survey and 196 titles will be
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adjusted 5% with employees receiving pay increases.
adjusted 5% with employees receiving pay increases.
Both City and Schools are proposing an increase in the
Both City and Schools are proposing an increase in the
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health care contribution from the current $5,225 to $5,750
health care contribution from the current $5,225 to $5,750
on January 1 st.
st
on January 1.
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Five-Year Forecast Update
Five-Year Forecast Update
Projected Surplus/Deficits for City & Schools
$30
Millions
$0
-$30
-$60
-$90
-$120
FY 07-08FY 08-09FY 09-10FY 10-11FY 11-12
Projection in Five Year Forecast
Revised Projection Based on Current Budget
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Economic Development
Economic Development
Projects in the Budget
Projects in the Budget
Town Center
Town Center
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Assessment is 9% greater than the Citywide average
Assessment is 9% greater than the Citywide average
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$3.1 million in non-real estate tax revenues
$3.1 million in non-real estate tax revenues
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Expenditures 100% covered by SSD & TIF
Expenditures 100% covered by SSD & TIF
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Lynnhaven Mall
Lynnhaven Mall
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Assessment is 2.6% greater than the Citywide average
Assessment is 2.6% greater than the Citywide average
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$7 million in non-real estate tax revenues
$7 million in non-real estate tax revenues
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EDIP
EDIP
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$22.7 million invested at a cost of $511,000
$22.7 million invested at a cost of $511,000
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Annual Growth Rates in Service Demand (2000-2005)
Population0.5%
Population0.5%
Medicaid Recipients6.4%
Medicaid Recipients6.4%
Food Stamp Cases5.8%
Food Stamp Cases5.8%
Fire Calls5.2%
Fire Calls5.2%
Prisoners4.8%
Prisoners4.8%
Foster Care Cases3.0%
Foster Care Cases3.0%
Number of Vehicles2.2%
Number of Vehicles2.2%
Police Officers & Fire Fighters1.9%
Police Officers & Fire Fighters1.9%
Special Education Students1.4%
Special Education Students1.4%
Households0.9%
Households0.9%
Police Calls0.8%
Police Calls0.8%
Children Receiving Child Care0.8%
Children Receiving Child Care0.8%
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Efficiency
Efficiency
Budget per Capita
Budget per Capita
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Hampton$ 2,779
Hampton$ 2,779
Virginia Beach$ 3,782
Virginia Beach$ 3,782
Norfolk$ 3,963
Norfolk$ 3,963
Chesapeake$ 4,001
Chesapeake$ 4,001
Newport News$ 4,107
Newport News$ 4,107
Suffolk$ 4,667
Suffolk$ 4,667
Portsmouth$ 5,046
Portsmouth$ 5,046
Source: Cities FY 2007 Budgets
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Efficiency
Efficiency
Employees per 1,000 Population
Employees per 1,000 Population
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Suffolk10.80
Suffolk10.80
Hampton12.40
Hampton12.40
Virginia Beach14.69
Virginia Beach14.69
Newport News15.60
Newport News15.60
Chesapeake15.62
Chesapeake15.62
Portsmouth17.22
Portsmouth17.22
Norfolk18.30
Norfolk18.30
Source: Cities FY 2007 Budgets
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New Staff
New Staff
Total of 72.7 City positions
Total of 72.7 City positions
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54.75New staff for Human Services programs -100% offset by revenue
54.75New staff for Human Services programs -100% offset by revenue
1.89Convention Center support for events -100% offset by revenue
1.89Convention Center support for events -100% offset by revenue
2.0Sheriff’s Central Booking Office
2.0Sheriff’s Central Booking Office
10.255 positions are added for the expansion of the Aquarium’s exhibits and
10.255 positions are added for the expansion of the Aquarium’s exhibits and
5.25 are converted from contracted manpower for the Historic Homes
5.25 are converted from contracted manpower for the Historic Homes
0.60Treasurer’s Office to improve collection of delinquent taxes –100%
0.60Treasurer’s Office to improve collection of delinquent taxes –100%
offset by revenue
offset by revenue
3.75New staff for Parks and Recreation -100% offset by revenue
3.75New staff for Parks and Recreation -100% offset by revenue
(0.98)Reduction in Commissioner of Revenues staffing due to reduced
(0.98)Reduction in Commissioner of Revenues staffing due to reduced
revenues from the DMV Select Program
revenues from the DMV Select Program
0.44Volunteer Office to make a part-time position full time to continue to
0.44Volunteer Office to make a part-time position full time to continue to
attract volunteers to City services
attract volunteers to City services
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New Employees Over Time
New Employees Over Time
1400
1200
Number of Positions
1000
800
600
400
200
0
FY 02FY 03FY 04FY 05FY 06FY 07FY 08
General Govt.Human Services
Juvenile Detention CenterConvention Center
Library RenovationsPolice, Fire & EMS
Sheriff
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Capital Budget
Capital Budget
% Change% Change
FY 2007FY 2008ProposedFY 2008FromFrom
AdjustedApprovedAmendmentsAmendedApprovedFY 2007
Revenues
Pay-as-you-go$ 61.2 $ 60.9 $ 3.4 $ 64.3 5.6%5.1%
Bonds$ 82.4 $ 82.2 $ -$ 82.2 0.0%-0.2%
Lease Purchase$ 9.2 $ -$ -$ -0.0%-100.0%
State$ 33.1 $ 28.3 $ 0.6 $ 28.9 2.1%-12.7%
Federal$ 0.3 $ -$ -$ -0.0%-100.0%
Fund Balance$ 57.5 $ 11.1 $ 15.4 $ 26.5 138.7%-53.9%
Total Revenues:$ 243.7 $ 182.5 $ 19.4 $ 201.9 10.6%-17.2%
Total Revenues:
Expenditures
Schools$ 68.5 $ 60.9 $ -$ 60.9 0.0%-11.1%
Roadways$ 44.4 $ 35.0 $ 11.0 $ 46.0 31.4%3.6%
Buildings$ 19.5 $ 13.5 $ 1.2 $ 14.7 9.3%-24.6%
Parks & Recreation$ 13.2 $ 12.0 $ 0.5 $ 12.4 3.8%-6.1%
Coastal$ 12.4 $ 7.0 $ 5.5 $ 12.5 78.3%0.8%
Communications & Technology$ 16.2 $ 1.1 $ 1.0 $ 2.1 85.8%-87.0%
Economic & Tourism$ 29.6 $ 20.2 $ 0.2 $ 20.4 1.1%-31.1%
Water & Sewer Utilities$ 26.7 $ 25.0 $ -$ 25.0 0.0%-6.4%
Storm Water Utility$ 13.2 $ 7.9 $ -$ 7.9 0.0%-40.2%
Total Expenditures:$ 243.7 $ 182.6 $ 19.4 $ 201.9 10.6%-17.2%
Total Expenditures:
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Capital Projects
Capital Projects
Constitution Drive Extended (City’s portion)
Constitution Drive Extended (City’s portion)
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Baker Road Extended
Baker Road Extended
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Pedestrian System Improvements
Pedestrian System Improvements
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4 th Police Precinct Design
th
4Police Precinct Design
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Princess Anne Park
Princess Anne Park
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Electronic Storage of City Records
Electronic Storage of City Records
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Tennis Court maintenance and resurfacing
Tennis Court maintenance and resurfacing
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17 th Street Park Storage
th
17Street Park Storage
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Outfall Improvements for 79 th, 16 th, and 42 nd Streets
ththnd
Outfall Improvements for 79, 16, and 42Streets
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Design of the 61 st Pump Station
st
Design of the 61Pump Station
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Enhanced Dredging Funded through Increased Boat Tax
Enhanced Dredging Funded through Increased Boat Tax
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State and Local Funding for Transportation
$60
$50
$40
$30
Millions
$20
$10
$0
FY 2004FY 2005FY 2006FY 2007FY 2008
State FundingLocal Funding
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Transportation Options
Transportation Options
for Consideration
for Consideration
Do we have the right strategy for transportation?
Do we have the right strategy for transportation?
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Do we want to consolidate funding to a few
Do we want to consolidate funding to a few
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projects?
projects?
What should be our local transportation priorities?
What should be our local transportation priorities?
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Where would we obtain more funding?
Where would we obtain more funding?
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th
April 10 th Workshop is on Transportation.
April 10Workshop is on Transportation.
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Community for a Lifetime?
Community for a Lifetime?
For Whom?
For Whom?
For school children
For school children
For the elderly
For the elderly
For families on Food Stamps
For families on Food Stamps
For people who use the Recreation Centers
For people who use the Recreation Centers
For people who drive the roads
For people who drive the roads
For business owners
For business owners
For the juveniles in detention
For the juveniles in detention
For Homeowners
For Homeowners
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Preserving and Advancing the
Preserving and Advancing the
Prosperity of Families . . .
Prosperity of Families . . .
Ensuring safe neighborhoods
Ensuring safe neighborhoods
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Open Space
Open Space
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Attracting quality businesses
Attracting quality businesses
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Recreation Centers
Recreation Centers
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Free access to Library materials
Free access to Library materials
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Clean environment
Clean environment
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Helping families in need
Helping families in need
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First-class education
First-class education
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Maintaining transportation
Maintaining transportation
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Conclusion
Conclusion
We were able to reduce the real estate tax rate.
We were able to reduce the real estate tax rate.
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We were able to maintain current services to
We were able to maintain current services to
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the community.
the community.
We were able to provide increases in
We were able to provide increases in
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compensation to all employees.
compensation to all employees.
We need to develop a strategy to address local
We need to develop a strategy to address local
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transportation funding for the future.
transportation funding for the future.
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Workshops and Public Hearings
Workshops and Public Hearings
April 10 th Workshop –Transportation Discussion
th
April 10Workshop –Transportation Discussion
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April 17 th Workshop –School Operating & CIP Discussion
th
April 17Workshop –School Operating & CIP Discussion
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April 19 th Public Hearing(6 pm at Bayside High School)
th
April 19Public Hearing(6 pm at Bayside High School)
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April 24 th Workshop
th
April 24Workshop
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April 24 th Public Hearing(6 pm in Council Chambers)
th
April 24Public Hearing(6 pm in Council Chambers)
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May 1 st Workshop
st
May 1Workshop
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May 8 th Reconciliation Workshop
th
May 8Reconciliation Workshop
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May 15 th Vote on the Resource Management Plan
th
May 15Vote on the Resource Management Plan
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