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Home My WebLink About101607 BUDGET TOWN HALL Town Hall Meeting City Budget, Community Choices "Our community's budget confronts big questions that affect all citizens. As the city changes, its needs change. It's important that we hear what the public thinks about these important issues and offer an opportunity to exchange ideas" Mayor Meyera Oberndorf \ C) 5 1 What is the City's budget? ~ A great many think the budget is all about real estate taxes. ~ In reality, it is about meeting the expectations of our citizens. ~ We see the City's budget as delivering services. . . +a1i. + +C + + +1+ Budgetary Boundaries ~ Dillon Rule - We can do what the General Assembly allows us to do . . . and no more ~ The Budget Must Balance ~ School Budget: Revenue Sharing Formula ~ Personnel Laws ~ Council Policies & Dedications ~ State & Federal Mandates 2 Where the money comes from. . . 1$1,723 M I Real Estate $493.2 29% I Fyoal Other Taxes 262.4 15% Permits, Fines & Charges $223.0 13% Revenue Projections for the General Fund FY08 FY08 FY09 FY 10 Original Adjusted Projected Projected Real Estate $ 474.9 $ 471.5 $ 485.6 $ 500.2 Personal Property 137.0 136.4 143.7 General Sales 55.7 59.3 62.2 Utility 42.2 40.0 40.5 Business License 45.0 44.4 46.9 Franchise 4.7 5.6 5.9 All other local revenue 153.1 159.1 160.6 State 90.0 90.4 90.4 Federal 25.0 25.2 Total General Fund $1,027.6 $ t,016.6 'still assessing impact of Governor's recent cuts 1- 11 million II 3 Regional Real Estate Tax Rates 2008 Real Estate Tax Rate Reduction City Rate Since 2004 Portsmouth $1.26 19~ Norfolk $1.11 29~ Newport News $1.10 17~ Hampton $1.06 21~ Chesapeake $1.06 22~ Suffolk 94~ 14~ Virginia Beach 89~ Personal Property Tax Rates in Hampton Roads TAX RATE TAXON PER ASSESSMENT PERCENT $10,000 LOCALITY $100 BASE OF RETAIL VEHICLE Portsmouth $5.00 Loan Value 78% $390.00 Norfolk $4.50 Loan Value 78% $351.00 Suffolk $4.25 Loan Value 78% $331.50 Hampton $4.25 Loan Value 78% $331.50 Newport News $4.25 Loan Value 78% $331.50 Chesapeake $4.00 Loan Value 78% Virginia Beach $3.70 Loan Value 78% Prince William County $3.70 Average Trade-In 87% 4 Where the money goes . . . to provide services I Both City and Schools I I FYOS! Financial & Administration 4.0% Health & Human Services 7.9% Museums. Recreation. Open Space & Libraries 4.7% Building & Infrastructu re Maintenance 8.2% Trash Collection 1.7% Education as a % of Budaet Virginia Beach 50% Hampton 47% Chesapeake 44% Newport News 39% Norfolk 32% Portsmouth 31% Suffolk 29% Education 50.0% 1$1,723 M i Major types of expenditures. . . i FYOSI Debt Sennce 9% Operations 25% CIP Pay-go 4% I Both City and Schools I Personnel 62% 5 ;ir<b ,) ~" ",. ~,,"'.::;; Capital Outlay "'-;;.;;:;.'" $8,381,901 1% FY08 Budget - City Only I $861M I Management 8% Health Insurance 9% Contracted Manpower 2% Professional & Technical 24% Other Personnel Costs 2% O\oertime 2% Part-lime 3% by Account Structure Protectiw SeNces 18% by Type of Employee FY 2008 Budget - City Only Debt Service 13% Contractual Services 14% Capital Outlay 1% Personnel 51% BId Maint. & Repair 2% Print Shop 1% City Garage 6% I $305M I Efl1)loyee Training 1% 6 FY 2008 Budget - City Only Personnel 51% Outstanding Debt By Purpose Projected to June 30, 2008 (Total Debt $1.215 Billion) Stonn Water 1.7% General Government 57.5% Schools 24.2% I $110M I Growth in Services Annual Growth Rates 2000-2005 Population 0.5% Medicaid Recipients Food Stamp Cases Fire & Emergency Calls Prisoners Foster Care Cases Number of Vehicles Police Officers & Fire Fighters Special Education Students Households Police Calls Children Receiving Child Care 6.4% 5.8% 5.2% 4.8% 3.0% 2.2% 1.9% 1.4% 0.9% 0.8% 0.8% 7 Under Funded State Programs $341.7 20% Local Choice vs. "Must Fund" creates Unfunded Mandates There are $ 464.6 million in mandates in the budget, however only $123 million in revenue to cover them City Treasurer's Office Courts Commonwealth Attorney State Health Department Human Services State Recycling Requirements Storm Water Management Requirements Sheriff & Jail Operations Schools State Funding Shortfall = 40~ on Real Estate Tax Rate $ .9 $ .9 $ 1.1 $ 2.7 $ 22.5 $ 5.6 $ 14.0 10.1 161.4 So what does it all mean? ., Jl ~ _~.. Projected FY 09 Revenues: General Fund only Less: Schools portion of the revenue sharing formula City debt service All other Council dedicated revenues Tax Relief for the Elderly City Compensation (includes previous year rollover) GASB 45 requirement: health care liability Amount available for departments Current year's budget for departments (including inflation) Potential impact to services Increased CIP pay-as-you-go Potential impact to services $ 1,046.0 million 395.7 million 44.5 million 61.3 million 15.0 million 11.5 million 7.7 million $ 510.3 million $ 528.1 million ($ 17.8 million) 8 Community Demographic Trends 2000 to 2006 ~ Household income is $61,333 in 2006, up from $48,705 in 2000. ~ Families in poverty remains flat from 5.1 % in 2000 to 5.4% in 2006. . Elderly in poverty has declined from 4.7% to 2.6%. · Children in poverty increased from 8.6% to 10%. ~ There are more women than men (51.1 % vs 48.9%). ~ Elderly as a percentage of population is up from 8.4% in 2000 to 9.8%. ~ Below age 18 population has dropped from 27.5% to 26.2%. ~ Percent of the population who drives alone remains virtually constant from 82% to 81.8%. ~ High School graduation has improved from 64.9% to 82.7%. ~ 31.1% ofthe population has a college education vs. 28.1% in 2000. ~ Crimes per 1000 population has decreased from 41.8 to 33.6 l Community Economic Trends. ';1' .....':;i-4' );- Slowdown in Housing Market · Credit market is in flux · Foreclosures are up 25% from last year · ARMs are resetting to higher percentages · Residential building permits are down );- Vehicle registrations are flat );- Inflation has increased to 5% );- Unemployment remains lower than state & national levels );- Energy costs are increasing );- Tourism & Military stabilizing factors );- Discretionary spending uncertainty 9 Initial Budget Initiatives for the Next Budget Year ~ Review of all City vacancies ~ "Zero-basing" all operating accounts ~ Departmental targets set at 94% of need ~ Simplifying accounting structure ~ Expanding use of performance monitoring to ensure results Questions for Tonight. . . 1. The budget is a reflection of the community's needs and choices about services. . . a. In our community, are there services that can be reduced or should be added? b. What changes and/or needs within the community should we be anticipating? 2. What alternatives to the real estate tax might we consider? 3. What other budget initiatives can you recommend? '10 Town Meeting: City Budget, Community Choices Convention Center, Suite 4 Tuesday, October 16, 7:15 - 9:00 p.m. AGENDA 7:15 - 7:30 p.m. Informal Meet & Greet 7:30 p.m. Open and Welcome Meyera E. Oberndorf, Mayor 7:40 - 8:00 p.m. Briefing Dave Hansen, Chief of Finance and Technology 8:00 - 8:50 p.m. Facilitated Table Discussion Questions: 1a. In our community, are there services that can be reduced or should be added? lb. What changes and/or needs within the community should we be anticipating? 2. What alternatives to the real estate tax might we consider? 3. What other budget initiatives can you recommend? 8:50 - 9:00 p.m. Open-Ended Discussion 9:00 p.m. Closing