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Home My WebLink About032508 Biennial Budget CIPBiennial Budget and Capital Improvement Program FY 2008-09 to FY 2009-10 March 25, 2008 Executive Summary •Lowest year to year increase in the budget since the only 2.1% in FY 2009 and 2.4% 1991 recession – in FY 2010 Real Estate tax rate remains at 89¢ •although Machinery & Tools, Boats and Cigarette taxes are proposed to increase •State budget delivers significant blows to transportation and school construction programs •Employee compensation will be a 1.5% General Increase, except sworn positions in FY 2008-09 Process Timeline April 8–9 am Workshop th April 15–9 am Workshop th April 22–9 am Workshop nd April 29–9 am Workshop th May 6–9 am Reconciliation th Departmental development Public Hearings: of budget submissions Thursday, April 17at Green Run th High School Auditorium Tuesday, April 22at City Hall nd Council Chambers Note: General Assembly Veto Session is scheduled for April 23rd Tuesday, May 13at City Hall th Council Chambers Public Input •Town Hall Meeting –Are there services that can be reduced or should be added? Increased funding for mental health services were most frequently mentioned –What changes and/or needs within the community should we be anticipating? Aging population and declining home values were most often cited –What alternatives to the real estate tax might we consider? Cut spending, increase boat tax, and ask State for sales/income tax increases –What other budget initiatives can you recommend? Fund a housing trust fund; limit debt; use more performance measurement •Blue Ribbon Tax, Fee, and Spending Task Force –85 recommendations of which 41 are included in this budget and another 31 are under review. City and Schools Revenue Summary FY 2007-08FY 2008-09FY 2009-10 % Change% Change CitySchools Total Total fromfrom Adjusted Proposed Proposed Proposed Proposed FY 2007-08 toFY 2008-09 to BudgetBudgetBudgetBudgetBudget FY 2008-09FY 2009-10 Real Estate$493.2$256.1$248.8$504.92.4%$516.12.2% Personal Property138.568.970.3139.20.5%146.55.3% General Sales55.727.228.856.00.5%58.44.3% Utility Tax25.312.413.025.40.4%25.81.6% VA Telecom.24.015.18.523.6-1.7%23.3-1.3% Business License45.021.022.243.2-4%46.98.6% Cable Franchise4.72.72.85.517%5.50% Restaurant Tax49.148.8-48.8-0.8%51.14.9% Amusement Tax5.25.6-5.68.4%5.84.3% Hotel Room Tax23.124.1-24.14.7%24.93.0% Cigarette Tax10.813.2-13.222.8%12.9-2.0% Fund Balance19.17.34.912.2-36.1%11.2-8.7% Utility Fees106.0108.8-108.82.6%114.65.3% Other Revenue118.3100.729.7130.410.2%132.71.8% State Revenue496.4129.0386.4515.43.8%524.31.7% Federal Revenue111.142.163.6105.7-4.9%103.7-1.9% Total:$1,725.5$883.0$879.0$1,762.02.1%$1,803.72.4% Rate Adjustments •Personal Property –Machinery & Tools From $1.00 per $100 To $1.90 per $100 •Personal Property –Personal Watercraft From $0.000001 per $100 To $1.00 per $100 •Personal Property –Recreational Vehicles From $1.50 per $100 To $1.00 per $100 •Personal Property –Commercial Watercraft From $1.50 per $100To $1.00 per $100 •Cigarette Tax From 50¢per pack To 61¢per pack •Fees Many fees are proposed for increases to keep pace with rising costs Major Revenues 500,000,000 400,000,000 300,000,000 200,000,000 100,000,000 - 02/0303/0404/0505/0606/0707/0808/0909/10 Real EstatePersonal PropertyGeneral Sales BPOLMeal TaxState Real Estate Appreciation 24% 22% 20% 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% -2% -4% 818385878991939597990103050709 City and Schools Expenditure Summary FY 2007-08FY 2008-09FY 2009-10 % Change % Change CitySchools Total Total fromfrom Adjusted Proposed Proposed Proposed Proposed FY 2007-08 to FY 2008-09 to BudgetBudgetBudgetBudgetBudget FY 2008-09FY 2009-10 Salaries$ 795.6$ 317.9$ 492.0$ 809.91.8%$ 830.02.5% Fringe Benefits280.0109.3169.8279.1-0.3%284.51.9% Operating Expenses425.5274.3157.5431.81.4%434.50.7% Capital Outlay12.78.04.412.4-2.7%10.8-13.0% Debt Services134.4100.341.4141.75.4%148.44.7% Pay-As-You-Go*61.958.313.972.216.8%81.412.7% Reserves15.414.9014.9-3.0%17.517.7% City Manager Reduction0000-3.4 Total:$ 1,725.5$ 883.0$ 879.0$ 1,762.02.1%$ 1,803.72.4% *This reflects the amount of annual revenue appropriated to the CIP Expenditures Major Cost Drivers $60 Millions $50 $40 $30 $20 $10 $0 FY 04FY 05FY 06FY 07FY 08FY 09FY 10 Fuel (City & Schools)Tax Relief for the Elderly Other Purchased ServicesGASB (City & Schools) Compensation Adjustments Schools City •3.5% salary increase •1.5% salary increase, excluding sworn •Maintain $5,400 for positions in FY 2008-09 health care contribution •No merit increases rather a bonus program - $1 million •Funding for retention & recruitment of hard to fill positions -$0.9 million •Maintain $5,400 for health care contribution Overall Service Delivery Summary •The majority of current services will be maintained at the levels the citizens generally expect –Cut 100 positions + Added 52mostly for new program with revenues Net reduction of 48 positions •No employee will lose their employment status because of their position being eliminated Reductions in Services •Reduced vehicle and computer replacement •Eliminate local Consumer Affairs Program •Eliminate fire education program •Reduced funding for books •Eliminate boys baseball –rely on private leagues •Reduced community service officers •Eliminate the Patriotic Festival Capital Budget Summary of Project Estimates Capital Budget EstimatedAppropriationsYear 1Years Project ClassTotal Costto DateFY 2008-092 thru 6 Schools$ 623,771,741$ 273,221,953$ 53,840,154$ 296,709,634 Roadways 553,544,640 259,628,432 49,812,655 244,103,553 Buildings 169,104,555 95,652,253 17,015,015 56,437,287 Parks and Recreation 93,284,730 26,561,613 10,391,990 56,331,127 Utilities 433,007,545 197,038,543 39,996,547 195,972,455 Coastal 134,320,425 87,207,415 7,362,402 39,750,608 Economic and Tourism Development 213,563,883 87,694,746 22,531,965 103,337,172 Communications and Information Technology 106,664,157 41,392,929 19,302,977 45,968,251 Total Capital Improvement Program$ 2,327,261,676$ 1,068,397,884$ 220,253,705$1,038,610,087 Expenditures Capital Projects as a Cost Driver $250 Millions $200 $150 $100 $50 $0 FY 04FY 05FY 06FY 07FY 08FY 09FY 10 Total Pay-go-as-you-goTotal Debt Service Status of Key Projects •Funded: –Town Center Pedestrian Bridge –Strategic Growth Areas (Machinery & Tools and Cigarette) –Animal Control (Licensing Fees) –Fire/Rescue Station –Chesapeake Beach –Police Special Ops –Shore Drive Corridor Improvements –Phase IV –LaskinRoad Gateway –Phase IA –NimmoParkway –Phase VA –Princess Anne Road –Phase IV –Western Branch LynnhavenRiver Dredging (Boat Tax) –Rosemont Forest Drainage (Storm Water Fees) Next Steps •City Council April 8–9 am Workshop th April 15–9 am Workshop Review of th April 22–9 am Workshop nd Proposed April 29–9 am Workshop th Budget and CIP May 6–9 am Reconciliation th Thursday April 17at Green Run th High School Auditorium Tuesday April 22at City Hall nd Council Chambers •Public Input Tuesday May 13at City Hall th Council Chambers Final Thoughts •Austere budget designed to ride through this economy •Lowest year to year increase in the budget since only 2.1% in FY 2009 and the 1992 recession – 2.4% in FY 2010 Real Estate Tax rate remains at 89¢ •although Machinery & Tools, Boats and Cigarette taxes are proposed to increase to move critical capital projects forward •State Budget delivers significant blows to transportation and school construction programs •Lowest Compensation since 1992