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Maintains a Real Estate tax rate of 89 cents. . $5 million in City funds and $3.9 in School funding to meet GASB45 requirements. . A 1.5% general increase in FY 2009 for City employees (excluding sworn Public Safety positions). . A 3.5% salary increase in FY 2009 for School instructional employees. . City FTEs reduced by 55.93 (net decrease of 25.3 FTEs) and School FTEs reduced by 49,7 (net decrease of22,4 FTEs), " II FY 2008-09 Proposed Operating Budget Total Change Proposed From Adjusted FY 2009 Adjusted Revenues FY 2008 (millions) 08-09 Real Estate $493.2 $504.9 $11.7 Personal Property $138.5 $139.2 $0.7 General Sales $55.7 $56.0 $0.3 Utility Tax $49.3 $49.0 ($0.3) Business License $45.0 $43.2 ($1.8) Automobile License $9.4 $9.0 ($0.4) Cigarette Tax $10.8 $13.2 $2.4 Amusement Tax $5.2 $5.6 $0.4 Hotel Tax $23.1 $24.1 $1.0 Restaurant Tax $49.1 $48.8 ($0.3 ) Other Taxes $14.9 $16.1 $1.2 Charges For Services $158.2 $168.0 $9.8 Permits & Licenses $5.2 $5.9 $0.7 Fines & Forfeitures $6.0 $8.0 $2.0 Money & Property $16.9 $18.5 $1.6 State Revenue $496.4 $515.4 $19.0 Federal Revenue $111.1 $105.7 ($5.4 ) Misc. Revenue $14.5 $14.8 $0.3 Reserves & Receipts $23.0 $16.6 ($6.4 ) Total Revenues $1,725.5 $1, 762.0 $36.5 FY 2008-09 Proposed Operating Budget Total Change Proposed FY From Adjusted 2009 Adj usted ~enditures FY 2008 ( millions) 08-09 Education $862.0 $879.0 $17.0 Police $88.4 $86,7 ($1. 7) Sheriff $34,7 $36.8 $2.1 Fire $43.4 $42.4 ($1,0) EMS $7.2 $7.0 ($0.2) Courts & Support $14.9 $14.2 ($0.7) Public Works & Utilities $163,0 $164.9 $1.9 C,I.P. Commitments $13.4 $11.5 ($1.9) Planning & Agri. $14.5 $15.1 $0.6 N 00- Departmental $30.2 $31.0 $0.8 Parks & Rec. $42,1 $42.6 $0,5 Museums & Libraries $25.1 $25,9 $0.8 Human Svc, & Health $111.0 $113.2 $2.2 Housing $22.1 $22.5 $0.4 Convention & Visitor $24.6 $24.7 $0.1 Economic Develop. $3.3 $4.1 $0.8 Admin. & Support $18.0 $17.9 ($0.1 ) Finance Related $18.7 $18.0 ($0.7) Information Tech. $30.8 $31.0 $0.2 Debt Service $93.0 $100.3 $7.3 Capital Projects $49.7 $58.3 $8,6 Reserves $15.4 $14.9 ($0.5 ) Total Expenditures $1,725.5 $1,762.0 $36.5 FY 2008-09 Proposed Operating Budget Total Change Proposed From Adj usted FY 2009 Adjusted Personnel FY 2008 (millions) 08-09 Education 10,541.87 10,519.47 (22.40) Police 1,015.02 1,005.86 (9.16) Sheriff 523.37 524.37 1.00 Fire 469.66 462.88 (6.78) EMS 56,50 56,50 0.00 Courts & Support 167.90 163.40 ( 4,50) Public Works 873.38 877.38 4.00 Public Utilities 399,50 401.50 2.00 Planning & Agri. 142.00 139.00 (3.00 ) Non-Departmental 5.00 3,00 (2.00) Parks & Rec. 872.72 875.15 2.43 Museums & Libraries 417.29 414.28 (3.01) Human Svc. & Health 1,086.76 1,089.16 2.40 Housing 69.00 69.00 0.00 Convention & Visitor 136.73 135.73 ( 1.00) Economic Develop. 17.00 17.00 0.00 Admin. & Support I 99. 14 195.21 (3.93 ) Finance Related 231.04 223.29 (7.75) Information Tech. 309,80 313.80 4.00 Total Personnel 17,533.68 17,485,98 (47.7) FY 2008-09 Proposed Capital Budget Total Change Proposed From Adjusted FY 2009 Adj usted 08- FY 2008 (millions) 09 $62.2 $72.2 $10.0 $25.4 $12.2 ($13,2) $4.2 $24,8 $20,6 Other Fund Balance/ Retained Earnings State $29.5 $24.5 Federal $0.0 $1.9 Bonds/Lease Purchase $82.2 $83.5 Other $0.0 $1.2 Total Funding $203.5 $220.3 *Includes State Revenue transferred from Op. Budget. Total Change Proposed From FY 2009 Adjusted 08- (millions) 09 $53.8 ($6.1) $49.8 $1.2 $17.0 $2.3 $10.4 ($2.0) $7.4 ($5,1) $19.3 $17.2 $22.5 $2.1 $40.1 $7.2 Funding Pay-As- You-Go* Gen. Fund Bal. ~enditures Schools Roadways Buildings Parks & Rec. Coastal Information Tech, Eco. & Tourism Adjusted FY 2008 $59,9 $48,6 $14.7 $12.4 $12.5 $2.1 $20.4 $32.9 Utilities ($5.0) $1.9 $1.3 $1.2 $16.8 Total Expenditures $203.5 $220.3 $16.8 " II Revenue Rate Changes . Reinstated the City's tax on pleasure boats at $1.00 per $100 of valuation to provide funding to various dredging projects. . Tax on commercial boats and R.V.'s decreased from $1.50 to $1.00 per $100 of valuation. . Increased the Cigarette Tax from $.50 cents to $.61 cents to provide funding for Strategic Growth Area initiatives. . Increased the Personal Property Tax-Machinery and Tools from $1.00 to $1.90 to provide funding for Strategic Growth Area initiatives, . Various departmental fees and charges to recover costs per Blue Ribbon Task Force. School Funding . Pay-As-You-Go financing increased by $1 million in each year of the Capital Improvement Program. . 3.5% salary increase in FY 2009 for instructional and unified salaried employees. . Total School enrollment is projected to decline until FY 2015. . 20 FTEs were added to the School budget to address special education and AVID programs. . School FTEs reduced by 49.7 (net decrease of22.4 FTEs) due to declining enrollment. Capital Improvement Program Highlights Additional funding was added in FY 2008-09 for the following Capital Projects: . Full funding for a Town Center Pedestrian Bridge to provide safety and accessibility across Virginia Beach Boulevard. . Strategic Growth Area program funding, . Replacement of Chesapeake Beach Fire and Rescue Station, . Replacement of the Animal Control and K-9 Unit facilities. . Shore Drive Corridor Improvements- Phase IV for pedestrian and intersection improvements, . Numerous Water/Sewer and Storm Water projects including Rosemont Forest Drainage. Capital Improvement Programs Not Funded . Princess Anne Commons Cycling and Fitness Trail. . Construction of Indian River Road-Phase VII for four lanes from Lynnhaven Parkway to Elbow Road Extended, . Replacement of Beach Maintenance Facility. . Replacement of the Fire and Rescue Station near the Virginia Beach Courthouse. . Resort Area Drainage to reduce street flooding. . II Total City Compensation . 1.5% general increase in FY 2009 (excluding sworn Public Safety positions due to an enhanced retirement plan). . $ 1.9 million in lieu of a merit increase to recognize performance of employees and address positions that have remained difficult to fill. . City and Schools health insurance is budgeted at $5,400 for both years of the biennium, . Retirement (VRS) reduced from 17.95% to 16.48% and Life insurance reduced from I % to .89%. . City FTEs reduced by 55.93 (net decrease of25.3 FTEs) due to reductions in services, Reductions in City Programs . Reduced vehicle replacement program. . Lowest compensation package since early 1990's. . Reduced road and traffic signal maintenance. . Elimination of Consumer Affairs local program. . Elimination of Fire Education program. . Reduced lifeguard services outside of resort area, " II City Council Real Estate Tax Reductions City Council Real Estate Tax Rate History FY05 FY06 FY07 FY08 FY09 $1. 1964 $1.0239 99~ 89~ 89~ . Proposed Real Estate tax rate is 89~/$1 00 of value, 31 ~ reduction over 5 years. . Each 1 ~ on the Real Estate Tax rate = $5.4 million in FY 2009. . Average residential assessment = 2.34% . Average commercial assessment = 6.09% , II I Virginia Beach Proposed FY 2009 Tax Rates Real Estate 89~ Personal Property $3.70 (Vehicles) Automobile $25.00 Meal 5.50/0 Admissions 10.00/0 Cigarette (per pack) 61~ Hotel 8.0% Virginia Beach compares very favorably to other Hampton Roads localities in terms of major tax rates and fees, City rates are generally equal to or are the lowest imposed among Hampton Roads localities. Budget Facts . Average cost of a city employee = $47,060* . 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