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HomeMy WebLinkAboutMARCH 29, 2011 SPECIAL SESSIONCITY OF VIRGINIA BEACH ~~COMMUNITY FOR A LIFETIME" CITY COUNCIL MAYOR WILLIAMD. SESSOMS, JR., At-Large VICE MAYOR LOUIS R. JONES, Bayside -District 9 RITA SWEET BELLITTO, At-Large GLENNR. DAMS, Rose Hall-Districr3 WILLIAMR. DeSTEPH, At-Large HARRYE. DIEZEL, Kempsville -District 2 ROBERT M. DYER, Centerville -District 1 BARBARA M. HENLEY, Princess Anne -District 7 JOHN E UHRIN, Beach -District 6 ROSEMARY WILSON, At-Large JAMES L. WOOD, Lynnhaven -District 5 CITYMANAGER - JAMES K SPORE CITYATTORNEY- MARK STILES CITYASSESSOR - JERALD BANAGAN CITYAUDTIOR - LYNDONS. REMIAS CITY CLERK - RUTH HODGES FRASER, MMC CITY COUNCIL SPECIAL FORMAL SESSION 29 MARCH 2011 I. SPECIAL FORMAL SESSION -City Council Chamber - A. CALL TO ORDER -Mayor William D. Sessoms, Jr. 1. READING OF THE MAYOR'S CALL FOR FORMAL SESSION B. ROLL CALL OF CITY COUNCIL C. PROPOSED FY 2011-2012 RESOURCE MANAGEMENT PLAN James K. Spore, City Manager CITYHALL BUILDING 2401 COURTHOUSE DRIVE VIRGINIA BEACH, VIRGINIA 23456-8005 PHONE: (757) 385-4303 FAX (757) 385-5669 E-MAIL: Ctycncl@vbgov.com 6:00 PM II. ADJOURNMENT -1- MINUTES VIRGINIA BEACH CITY COUNCIL Virginia Beach, Virginia 29 March 2011 Mayor William D. Sessoms, Jr. called to order the SPECIAL FORMAL Session for the VIRGINIA BEACH CITY COUNCIL in the City Council Chamber, City Hall, on Tuesday, March 29, 2011, at 6:00 P.M. Council Members Present: Rita Sweet Bellitto, Glenn R. Davis, William R. "Bill " DeSteph, Harry E. Diezel, Robert M. Dyer, Barbara M. Henley, Louis R. Jones, Mayor William D. Sessoms, Jr., Rosemary Wilson and James L. Wood Council Members Absent: John E. Uhrin, [Absent due to the birth of his beautiful new daughter] Alexandra Elizabeth Uhrin, Born March 26, 2011, 10: 24 AM 7 pounds 8 ounces - 20 %z "long] School Board Members Present: Chairman Daniel D. Edwards, Ashley K. McLeod and Patrick S. Salyer March 29, 2011 -z- MAYOR'S CALL TO SPECIAL SESSION: ITEM # 60761 The Mayor read the CALL TO SPECIAL FORMAL SESSION: 22 February 2011 "THE HONORABLE MEMBERS OF CITY COUNCIL In accordance with the Virginia Beach City Code Section 2-21, and by the authority vested in me as Mayor of the City of Virginia Beach, I hereby call for a SPECL4L FORMAL SESSION VIRGINL4 BEACH CITY COUNCIL in the City Council Chamber, on Tuesday, March 29, 2011, at 6:00 P.M. The purpose of this SPECIAL FORMAL SESSIONwill be the City Manager's Presentation of the Management Resource Plan (FY 2011- 2012 Budget). Sincerely, William D. Sessoms,,Jr: Mayor" cc: May01' arld MCmbers Of Clty ~i'OUIIC'II ,James K..Spore, City Manager Mark D. Stiles, CityAtio~ney Lyndon S. Remus, CityAuditor Rutli Hodges Fraser, MMC, City Clerk .Susan D. Walston, Deputy City Manager Robert S. Herbert, Deputy CityMallager David L. Hanscn, Dc~~uty City Manager Cat/ieryn Whitesell, Director o}~Marlagement Services Mary Hancock, Merlra and Communications Administrator Matt Cenligharo, Director of~Multimedra Selvl~es March 29, 2011 _` _ ~ ~ 2, ZO~99'~S S 0~~ 2 r ~F OUR NAT1~N WILLIAM D. SESSOMS, JR. MAYOR City of Virginia Beach VBgOV . COIT1 22 February 2011 THE HONORABLE MEMBERS OF CITY CO UNCIL MUNICIPAL CENTER BUILDING 1 2401 COURTHOUSE DRIVE VIRGINIA BEACH, VA 23456-9000 (757) 385-4581 FAX (757) 385-5699 wsessoms C vbgov.com In accordance with the Virginia Beach City Code Section 2-21, and by the authority vested in me as Mayor of the City of Virginia Beach, I hereby call for a SPECIAL FORMAL SESSION of the i~IRGINIA BEACH CITY COUNCIL in the City Council Chamber, on Tuesday, March 29, 2011, at 6:00 P.M. The purpose of this SPECIAL FORMAL SESSIONwill be the City Manager's Presentation of the Management Resource Plan (FY 2011-2012 Budget). Sincerely, Willia o , Jr. Mayor cc: Mayor and Members of City Council James K Spore, City Manager Mark D. Stiles, City Attorney Lyndon S. Remias, City Auditor Ruth Hodges Fraser, MMC, City Clerk Susan D. Walston, Deputy City Manager Robert S. Herbert, Deputy City Manager David L. Hansen, Deputy City Manager Catheryn Whitesell, Director of Management Services Mary Hancock, Media and Communications Administrator Matt Cernigliaro, Director of Multimedia Services -3- ITEM # 60762 Mayor Sessoms referenced a serious matter pertaining to correspondence to the Virginia Beach General Assembly Delegation re the Senate Redistricting Process, which will begin next week, is coming at the request of both Senators representing only Virginia Beach: Honorable Jeffrey L. McWaters and Honorable Frank W. Wagner. Three (3) Senators represent smaller portions of Virginia Beach. The City Council is very concerned that one of the plans put forward for Senate representation would have one Senator as the sole representative for the City of Virginia Beach, the largest City in the Commonwealth. Mayor Sessoms read the correspondence, which is hereby made a part of the record and distributed for signature. March 29, 2011 City of Virginia Beac1~.. VBgov.cam MUNICIPAL CENTER BUILDING 1 2401 COURTHDUSE DRIVE VIRGINIA BEACH, VA 23456-8000 (75~ 385+1581 FAX (75~ 385.5699 wsassoms®vbgoucom March 29, 2011 Virginia Beach General Assembly Delegation Subject: Senate Redistricting Process Dear Senators and Delegates; The City Council of Virginia Beach is very concerned about the redistricting process that will . begin next week. We are particixlarly concerned about representation in the Senate of Virginia for Virginia's largest city. The population of Virginia Beach, according to the. 2010 Session; is 437,494 persons. We understand that a perfect sized Senate seat under the 2010 Census would. be 200,206 persons. Virginia Beach is currently represented by two senators who represent only Virginia Beach, plus three senators who represent smaller portions of the city. We are very concerned that one of the plans that has been put forward at this time for Senate representation would have only one senator solely represent the City of Virginia. Beach. We believe very strongly that the City should be represented by two senators who represent only the City of Virginia Beach, plus other senators who represent smaller portions of the population. We respectfully request that any redistricting plan that goes forward would, to the extent possible, address our request. We certainly understand that regardless of how the redistricting process is completed, whomever is elected to represent Virginia Beach will do an excellent job. We believe, however, that two senators representing just the City of Virginia Beach is the most fair and representative outcome. WILLIAM D. SESSOMS, JR. MAYOR The Honorable Mayor and Members of City Council Subject: Serrate Redistricting Process March 29, 2011 Page 2 Thank you for addressing our concerns. Staff is available to help in any way possible. Respectfully, .~% William D. Sessoms, Jr. Mayor Louis It. Jon Vice-Mayor William R. DeSteph Council Member Rita Sweet-Bellitto Council Member arty E ~ iezel Counci emb: /k•. Gleilzr R. Davis, Jr. Council Member Ck~~Ci%~ Robert M. Dyer Council Member Rosemary i n Council er ~ ~• Barbara M. Henley J lirin cil Member uncil Member J es ood C it Member cc: Members Senate privileges & Election Committee Members House Privileges 8i Election Committee DATE: March 25, 2011 TO: Local Governing Bodies, Virginia Municipal League, and the Virginia Association of Counties FROM: State Board of Elections (SBE) RE: Submission Date for Local Redistricting Plans CC: General Registrars and Electoral Board Members; Mary Spain, Division of Legislative Services; Joshua Lief, Office of the Attorney General This memorandum provides official guidance and recommendations from the State Board of Elections for your locality's redistricting preparation and preclearance submission to the Department of Justice under Section 5 of the Voting Rights Act. The SBE is hiehly recommending an Anri129, 2011, submission. deadlne_for your locality's redistrictine plans. In addition. the SBE is recommendine that your locality seek expedited vreclearance review from the Dpartment of Justice (DOJZ of your redistricting plan. The SBE believes an April 29 submission date combined with the possibility of expedited precleazance review will ensure orderly, cost-effective, and successful elections in 2011. 2011 Va. Acts Ch. 3 Schedule Supports Submission on or before Apri129, 2011 As you likely know, Governor McDonnell recently signed into law HB 1507 (now 2011 Acts of Assembly Chapter 3), a bill that modifies the 2011 election calendaz due to the effects of the decennial redistricting process. Subject to preclearance, this legislation moves the primary date from June 14, 2011, to August 23, 2011, while also preserving a full 45-day window for the transmission of overseas absentee ballots for both the primary and general elections. Consequently, absentee ballots for primaries must be sent out by July 8, 2011, and additional deadlines have been pushed into May and June. While elected offices associated with your local redistricting plans may not have primaries, it is extremely important for many reasons that you begin work on your plans immediately. In particular, if local primaries are utilized, timely distribution of those absentee ballots in compliance with the statutory deadline makes it imperative that local redistricting plans be submitted without delay on or before Apri129, 2011. The Secretary of the State Board of Elections would have difficulty exercising discretion to waive the 45-day deadline for an emergency created by a failure to plan accordingly. Historical Precedent Supports Submission on or before Apri129, 2011 There is significant historical precedent for the Department of Justice to reject or amend plans causing a delay in preclearance and affecting important ballot preparation and delivery deadlines under the calendar. For example, four localities were directed to delay their Board of Supervisor General Elections in 1991 due to a lack of DOJ preclearance. State law (Va. Code § 24.2-313) makes only limited provision for delaying local governing body and school board elections scheduled for the general election date. Minimizing preclearance delay is essential to avoid unnecessary complication and cost. In sum, the condensed calendaz makes it especially important that you prepare and submit your local redistricting plans for preclearance at the earliest possible date. Please keep in mind that under the Voting Rights Act, the locality has the burden to prove that the proposed redistricting plan or other changes meet Section 5 standards. There is no guarantee that this process will go smoothly. Delav Can Adverselv Impact Your Locali Delayed action on your end could significantly impact your locality financially. There is no way to know for certain whether a state legislative primary will take place in your locality until, at the earliest, May 27 (the earliest official date under Chapter 3 where SBE would know whether or not a particular primary will be held). In the event of your locality's participation in a local, State Senate and/or House of Delegates primary, new voter identification cards must be mailed out to voters affected by redistricting at least 1 S days before the primary election (i. e., by Monday, August 8, 2011). ~ Please keep in mind that your General Registrars are working closely with the State Board of Elections in printing voter identification cards and we need the updated information contained in your plans in order to print these cards timely. If your plans are not precleared by the Department of Justice in time for the printing of these voter cards, it is quite likely that a new set of cards will need to be printed and mailed to reflect your local plan. In addition, SBE is attempting to secure funds to help localities defray the costs of the voter cards; however, the SBE will not pay for printing two sets of voter cards in the event your redistricting plan has not been precleared by the Department of Justice within enough time. Inaction could cost your locality twice as much in printing these cards. Please keep in mind that your general registrars and Electoral Board members are under considerable stress leading up to an election in any year. The added duties caused by redistricting and the condensed elections calendar compound these pressures. The Commonwealth is under increased scrutiny not only because it is the only state under the Voting Rights Act to hold a General Election in a redistricting year, but also because of heightened scrutiny of timely mailing of military and overseas absentee ballots. There are many challenges to overcome and Virginia will certainly. be in the national spotlight this fall. Please do everything you can to provide the time and planning necessary to ensure your general registrars and local electoral boards succeed. Remember to Request Expedited Review---Sug egg sted Lan ugua¢e In addition to the April 29, 2011, deadline, the SBE also recommends that your legal counsel ask for expedited review when submitting your plan to the Department of Justice. 28 CFR § S 1.34 (a) provides that a submitting authority "may request that the submission be given expedited consideration" and "[w]hen a submitting authority demonstrates good cause ...the Attorney General will attempt to make a decision by the date requested. However, the Attorney General cannot guarantee that such consideration can be given: 'Z Submissions asking for expedited consideration "should explain why such consideration is needed and provide the date by which a determination is required." Below, please find suggested or sample language that your locality can use when seeking expedited review when submitting your local redistricting plan to the Department of Justice: Expedited consideration by [insert date 30 days after submission date], is requested to assure absentee ballots can be sent to absent active duty military and overseas applicants at least 4S days before primary elections scheduled for August 23, 2011 under 2011 Va. Acts Ch. 3. Va. Code § 24.2-612 implementing the MOVE Act, as well as Virginia's consent decree in US x Cunningham, Case No. 3:08CV709 (12.14.2010), establish a 45-day standard for sending absentee ballots that cannot be achieved without expedited review. Preclearance on the requested expedited review calendar of 30 days ~ Please see § 24.2-306 of the Gode of Virginia. A new voter card must be sent to all registered voters whose election district, town, precinct ar polling place is changed. 2 Please see: http://www.justice.gov/crt/about/vot/28cfr/Sl/subpart e.php. 2 instead of 60 days will greatly benefit voters, particularly absent military and overseas citizens, as well as candidates and election officials affected by the redistricting transition. Closelv Monitor Your Submission SBE recommends taking a proactive approach during the precleazance process. A DOJ redistricting analyst should contact the local submitting official and this would be an opportune time to underscore the need for expedition from DOJ. If you have not heard from DOJ by Day 10 after submission, you should take the initiative to contact the Voting Section with a phone call and reiterate your desire for expedited preclearance to facilitate the mailing of absentee ballots to overseas civilian and militazy voters. Further, if you have not received a response on your request from the Department of Justice after 30 days, then SBE recommends you again contact DOJ's Voting Rights Section of the Civil Rights Division and inquire as to status of submission. Resources on Preclearance Process These suggestions aze consistent with Virginia Division of Legislative Services' (DLS) guidance, in particular its suggested Redistricting Calendar recommending that preclearance submissions should follow "as promptly as possible" adoption of local redistricting plans ~in March and April, 20113 DLS's publications, along with Chapter 25 of the General Registrazs and Electoral Board Members Handbook,4 provide important practical guidance for specifics on the redistricting process, including information on the preclearance process. SBE staff is also available at your convenience to discuss the 2011 elections calendaz and other items contained in this memo. _._~, , ~_ ,Sirioerely, r_.. ,, ~='-,. r .- Donald Palmer Secretary, State Boazd of Elections s Guide to Redistricting for 2011, htip://redistrictinp~ dls.virginia.g_ov/2010/Data/PublicationslGuideRedist2011 pdf (suggested Calendar timeline on pdf page 45); Additional publications, including the March 201 I Part 2 Drawing the Line are available here: http://redistrictin .dg Is.virginia.gov/2010/Publications.as~x . a Available here: http://townhal1.virginia.gov/UViewGDoc.cfm?gdid~333 The Handbook is being updated to reflect more recent DLS guidance. -4- ITEM # 60763 Mayor Sessoms referenced correspondence from Daniel D. Edwards, Chairman, Virginia Beach School Board, and the response to the City Manager re School Superintendent Merrill's memorandum, which was shared regarding funding for FY2012 Budget. The letter signed by the Mayor and Vice Mayor is hereby made a part of the record. Mayor Sessoms read into the record the response of the Mayor and Vice Mayor, and advised in the last paragraph: "It would be extremely difficult for this body to arrive at a funding arrangement without understanding the magnitude of issues facing the entire City in FY12. Much deliberation is yet to come as the public's need to be heard must occur and all issues vetted by the City Council. Please express to the Superintendent our commitment to avoid negative impacts to the education of our children and we look forward to receiving their presentation of the School's Budget and CIP (Capital Improvement Program) at our April 5 workshop. " March 29, 2011 IA~ ~r~; =-~~ ~ ~z * ~. ~~ ~,~, r r OUR NAS1 WILLIAM D. SESSOMS, JR MAYOR March 29, 2011 James K. Spore City Manager City of Virginia Beach 2401 Courthouse Drive Virginia Beach, Virginia 23456-9001 Subject: Response to VBCPS Superintendent Regarding Funding for FY12 Budget Dear Mr. Spore: MUNICIPAL CENTER BUILDING 1, ROOM 234 2401 COURTHOUSE DRIVE VIRGINIA BEACH, VA 23456-9000 (757) 38x4581 FAX (757) 385-5699 wsessoms(~v6aov.com We appreciate your sharing with us Dr. Merrill's March 21 memorandum sent to you requesting an update on what funding levels the Schools can expect to receive for the FY 12 budget and when that information might be provided. Over the last several months, City Council has spent considerable effort discussing the current circumstances surrounding the City and School Revenue Sharing Formula as well as the accumulation of fund balances within special school funds. As we are now in receipt of the School Board's Adopted Operating Budget and Capital Improvement Program it is our anticipation that we will do all that we can to fund the School's operating needs. It is important for the Superintendent and the School Board to understand the Council's need to receive your FY12 Budget as well as the public's input before we can balance the many competing needs of our great City in order to maintain our current assets as well as preserve our quality of life. It is simply too early in the budget process for us to make decisions. It is important for the City Council to weigh the total distribution of resources in order to find a balance between a world class school system and the delivery of government services relied on by the entire community. Furthermore, the City Council has not come to consensus with regard to whether or not retaining the City/School Revenue Sharing Formula still has merit. It would be extremely difficult for this body to arrive at a funding arrangement without understanding the magnitude of issues facing the entire City in FY12. Much deliberation is yet to come as the public's need to be heard must occur and all issues vetted by the City Council. Please express to the Superintendent our commitment to avoid negative impacts to the education of our children and we look forward to receiving their presentation of the School's Budget and CIP at our April 5 workshop. Sincerely, William D. Sessoms Mayor City of Virginia Beach VBgovcom ~~. Louis R. Jon Vice-Mayor c: Members of City Council ~IRGINIA A H E I.IC scHOOl.s BEACH CITY PUB A p O F T H E C U R V E fames G. Merrill, Ed.D. Superintendent March 21, 2011 Mr. James K. Spore City Manager City of Virginia Beach Municipal Center, Building 1 2401 Courthouse Drive, Suite 234 Virginia Beach, Virginia 23456 __ - - --- ~ ~ ~ ~' ~~ ~, - z ~s~ ~ ~ 2o~t i ~i~ ~j~ ~ii~lzf>vtF 13 F~f.r~': DearTizn: I have questions of you. It is getting difficult to plan for next year not knowing what to expect1 o the local budget. In past years the anticipated local budget had less volatility. There-t" e on behalf of our School Board I have two questions for you. 1. When can we expect a number from you in terms of how much money we will have to earmark for this year's final true-up amount? Last year that number was eventually reduced considerably and was part of the reason for our carry-over funds. 2. Is it the intent of the City Council to wait until after all major public input opportunities to the budget process have taken place before advising the Schools how much, if any, dollars will be removed from funds currently identified as school funds or school revenues? ~Je would appreciate a timely response. Than3~ you. 11, Ed_D. 2512 George Mason Drive I P.O. Box 6038 I Virginia Beach, VA 23456-0036 I (757) 263-1333 I (757) 263-1397 Tax www.vbschools.com IRGINIA BEACH CITY PUBLIC SCHC-CiLS A H E A D O F T H E C U R V E SCHOOL BOARD Danbl D. Edwards Chakman Dishict 1-Centerville 1513 Beachview Ori+re VA Beach, VA 23464 495.3551 (h) • 717-0259 (c) WIIUam J. "BNI" Brunke, N VlcaChalrman District 7 -Princess Anne 4099 Foxwood Ddve, Suite 108 Virginia Beach, VA 23462 222.0134 (w) . 26G2772 (c} Todd C. Davidson At-Large 1861 Mayherry Drive VA Beach, VA 23456 427-3330 (w) • 285.9409 (c) Emma L. "Em" Davie District 5 - Lynnhaven 1125 Michaelwood Drive VA Beach, VA 23452 340-8911 (h) Dorothy M. "bottle"Holtz Ablarge 1304 Downs Lane VA Beach, VA 23455 460.2440 (h) Brant N. Mekanxie District 3 -Rose Hall 1400 Brookwood Place VA Beach, VA 23453 816-2736 (c) Ashley K McLeod At-Large 5500 Del Park Avenue VA Beach, VA 23455 552-0348 (h) Samuel G. "Ssm" Reid District 6 -Beach 1533 VA Beach Blvd. VA Beach, VA 23454 284.1067 (c) Patrtck S. Salyer At-Large 2233 Creeks Edge Drive VA Beach, VA .23451 s2o-21a1(~) Sandn Smith-Jones District 2 - Kempsville TOS Rock Creek Court VA Beach, VA 23462 490.8167 (h) Carolyn D. Weems !'Astrid 4 - Bayskle 1420 Gaudia Drive VA Beach, VA 23455 464-6674 (h) SUPERINTENDENT Jame: G. MariN, Ed.D. 2512 George Mason Drive VA Beach, VA 23456 263.1007 March 29, 2011 The Honorable William Sessoms, Mayor Members of City Council City of Virginia Beach Municipal Center Virginia Beach, VA 23456 Dear Mayor Sessoms and Members of City Council: We sincerely appreciate you and your staff affording the School Board an opportunity to present our budget to you next Tuesday, April 5t". Since we have had the opportunity to discuss much of the substance at your February 15th meeting and our joint meeting on March 1st, we would like to ensure our presentation is responsive to questions you have on either material we have previously provided or on the school's portion of the City Manager's budget. We will have Board members and staff available but would appreciate your providing any questions you may have in advance directly to Dr. Merrill and/or me -our contact info: Dan Edwards 717-0259 dedwscolbdC~aol.com James Merrill 263-1333 iames.merrillCa~vbschools.com Sincerely, Daniel D. Edwards Chairman, School Board, City of Virginia Beach School Administration Building • 2512 George Mason Drive • P.O. Box 6038 • Virginia Beach, VA 23456-0038 -S- PROPOSED FY 2011-2012 RESOURCE MANAGEMENT PLAN ITEM # 60763 6:06 P.M. The City Manager advised it is obvious to all; we have come through a very difficult recessionary period in our Country. When decisions were made, the staff indicated during the past three (3) years, these were not sustainable decisions, but decisions that must be made. The role of the Federal and State Government has changed dramatically. It is not realistic to believe we will see a lot of assistance from the Federal or State Governments. Cities are certainly not on their own but in a new ballgame, in terms ofdealing with some of the issues the City will be facing. Some local solutions must be compiled to address the problems identified. The City Council has spent the last several months preparing for this budget for which the Ciry Manager commended the City Council. This commenced with the Five Year Joint City Council and School Board Forecast in November. A $l9-MILLIONgap was identified at that time and has widened to approximately $24-MILLION. Many of the presentations within the last six to eight weeks has been focused on the Community's resources (buildings, the physical plan, Schools, technology, roadways, drainage system, beaches, the fleet and workforce itsel,~ in which the past and present tax payers, citizens and investors have invested. It is our job to be good stewards of their investments. BUDGET &CIP REVIEW SCHEDULE • Today -Presentation of the Proposed Operating Budget and Capital Improvement Plan • April Sth -City Council Budget Workshop • April 6th - Baarlget &CIP Open House, 6:30pm at the Convention Center • April 12"d -City Council Budget Workshop • April,l9th -City Council Budget &CIP Workshop • April 21st -Public Hearing, ,6pm at Green Run High School. • April 26th -City Council Budget Workshop • April 26th -Public Hearing, 6pm in City Council Chambers • May 3'd -Ciry Council Budget Reconciliation Workshop • May 10th -Vote on the Budget &CIP RESPONSIBLE BUDGET • City Council,. ext its January 2011 retreat,'dentifred the need to adopt a "Resposrsibte Budget"`as a Top Priority. • Definition.• A responsible budget finances the wide variety of quality services that the' Virginia Beach community has come to expect and rely on in the most efficient manner. Total Budget grows less than CPI fr i. .4 \~ L~~. Wyma+~~~-~..._..... .-. .__a ...... Tx 7xh ~nXrMMxm'°- March 29, 2011 -6- PROPOSED FY 20II-2012 RESOURCE MANAGEMENT PLAN ITEM # 60763 (Continued) The City Manager advised the goal ofall the discussion was to build a common base of understandingfor the City Council, Staff and the Community. A responsible budget was discussed during the Retreat in January 2011. IT MAINTAINS THE COMMUNITY • No local reductions to public safety departments • :Responds to Consent Order for sanitary sewer overflows • .'Reduces backlog of needed storm water projects • Improves transportation through increased roadway. funding • Provides staffing for new Animal Shelter • Provides compensation increases far City and School employees • 1Vlaintains local funding to education throughCity/School '-- Revenue Sharing Formula ;: Addresses Human Services needs -Funds two intermediate '. ` ;care facilities ~°~,,~ .~,. ,5 ~~_.,...~.,,,..~.~,a.~aw.._.a_~ v_.~m v_.__~.. ~,~.a_ .~~ _ _._ _ .. IT HOLDS DOWN COSTS BY ELIMINATING POSITIONS: • 78 City positions and 129.5 School positions are eliminated with. this budget - - No Fire or Police positions are elinrinate~~ HOWEVER the State eliminated funding for 11 Sheriff `s deputies - Schools eliminated 129. S positions, 48 of which are teachers - Closure of the Oceanfront Branch of the Treasurer's Office - Half of the Joint CitylSchools Print Shop sta~zs eut due to declining utilization -Converts 28.43,part-time staff at the Aquarium to full-time positions resulting in 6.43 fewer FTE's - Human Services is eliminating 10.78positions:du~ in part to several programs having lower utilization. and in part to insufficient funds -- Privatizing golf courses eliminate~~3©,8 City positions ~"•. ~,.-.~.,.m ~~,.ro~.~~.. ~,~,...~ ~~.v ~ ,~,. ~.. ~ ~„. _ ... Catheryn Whitesell, Director -Management Services, referenced the documents distributed: FY 2011-12 RESOURCE MANAGEMENT PLAN Executive Summary, Proposed Operating Budget and Proposed Capital Improvement Program, as well as the "pocket" fold-out FY 20II-12 Proposed Resource Management Plan. March 29, 2011 -~- PROPOSED FY 2011-2012 RESOURCE MANAGEMENT PLAN ITEM # 60763 (Continued) As in previous years, responses will be posted on the web. Catheryn advised this Budget represents the third consecutive Budget developed in a time of declining real estate values. The City has seen property values fall by over 12% since their peak in 2009. While this decline is leveling off, a return to normal real estate revenue growth will not be seen in the near future. The good news is that other revenues impacted by the recession are beginning to recover. At the January City Council Retreat, Staff was challenged to develop a "responsible budget ". This budget is believed to achieve that priority. IT CONTINUES A TRADITION OF SAVING • 17,982 volunteers gave 1.4-Million hours of service. • Through efficiencies departments saved $1.7-Million and avoided another $4-Million in <costs • Over the last ten years City departments have saved the trrxpayers~ver~95.2-Million or the equivalent of 9 cents on the real estate tax rate .,~ `~.~ ~..._.~ _~__..__M~..._...._m.....~~__._.~,. __ ~~ ~, IT ADDRESSES MAINTENANCE BACKLOGS During the recession we, like other communities, eut basic maintenance and back-office funding. Over the next several years we are planning to: - Fund 75% of our actuarial liability n~tl~e Risk Management program • First step provide $S.t-Million asa transfew into the fund balance of the Risk Management Fund - Restore vehicle replacement tb the ~3-Mitlion tevel that keeps annual maintenance costs in check • Jncrease funding from ,53.1-Million to $4.I-;t9illion - Provide adequate funding to meet the organization 's needs for information technology • Convert contractual support and add positions where it makes sense • Maintain current replacement cycle,for desktop computing • Address critical system replacements in public safety areas - Provide funding to maintain the 2~5 buildrngs we own • C'onstructfive of the top 13 buildings in need of replacement and provides design funding for another jour • /nerease maintenance at the Aquarium and renovate o:rr hvo oldest recreation centers - Address the backlog of neighborhood related storm water projects and address long standing ditch and pipe cave-in maintenance March 29, 2011 -8- PROPOSED FY 2011-2012 RESOURCE MANAGEMENT PLAN ITEM # 60763 (Continued) Catheryn advised this Budget provides the first Ciry and School Board pay raise since July 2008: for City employees 1 % % pay raise for all employees and a market salary adjustment; for School Employees, base pay increase and a 2.5% bonus. IT ADDRESSES CITY COUNCIL TOP PRIORITIES • Governor's Transportation Plan adds $362-Million [ Lesner Bridge Replacement Lynnhaven Parkway Phase Xf tv~oT~ Witchduck Road Phase 1[ Elbo«~ Road Extended Phase II Laskin Road Phase I wooT~ Indian River Road Phase VII i 'Laskin Road Phase II Holland Road Phase VI woor~ • Pleasure House Point holds future capacity • 'Compensation for employees recommendations - For City employees a 1 % % pay raise for all employees and a market salary adjustment - For School employees a %a% base pay increase and 2.5% bonus ~. ~~`Holds future capacity for theHeadquarters Hotel and Dome Site development pendir decisions ~~ IT ADDRESSES CITY COUNCIL PRIORITIES ccorrrirruED~. • Local Road Projects Nimmo Parkway Phase V-A Laskin Road Gateway l -A _.. _-_~ ...._...~~.... _.. _. ~ _. ~...._... _ __.. ~ ._,...~v .Wesleyan Drive Centerville Road Interim Improvements Shore Drive Phase III • Storm water maintenance backlogs • Neighborhood dredging - Includes proposed policy and initial fundingfor City costs when neighborhoods are approved by City Council • Sand replenishment j.-, -- Proposes a 12-month process to discuss options and solicit community input with decision in FY 2012-13 Responsible Budget ~. w_ . _ __ March 29, 2011 -9- PROPOSED FY 2011-2012 RESOURCE MANAGEMENT PLAN ITEM # 60763 (Continued) IT USES DEDICATED FUNDING FORNEW POSITIONS • Governor 's Transportation Plan will fund six new positions ,through he CIP eve in Public Works & one in Finance) • Storm water fee increase wild fund 14 new positions to address neighborhood revitalization projects, ditch maintenance, pipe .cave-ins and project management '• Medicaid will provide funding to open and operate two new intermediate care facilities for the intellectually disabled E ~• Eight new positions are funded in Public Utilities to address backflow prevention, an electrical pump station maintenance "--crew and increasing workload associated with the new solid astc fee Five new positions are funded in Parks and Recreation through ~e~ or the new Williams Farm Recrea ion Center ,~ ...~.. ~,~ _ .~.,-..~ ~.,~~ee.~,. e _ ..~ .~.. _ .„.. ...,~„~,»~, BUDGET BY EXPENDITURE ACCOUNT FY 2011-12 El ZOI0.11 eldjusted Budget City Proposed Budget Schools Proposed Budget Total City & Schools Proposed Budget % Chllnge 1'e~~sonnei $ 7$3,3 $ 310.7 $ 493.2 $ 803.9 2.61°,0 Fringe Benetlts 243.8 110.1 1.18.4 ...258._5 6.05% OperatinG Expenses 452.-~ 281.$ 164.4 445.9 -I.44'% c'atfit~t-onttny 14.3 11.5. 2.3 1.3.8 -3;66° C>eut Seavice L -17.3 1:03.8.. . 44.$ ..148.6 0.91 `% Pali=-,as-k'nn-t;a 34:i 41.0 - 41LO ..19.26°n IZC5Fr4'CS 2p,<1 28.9 - 20.9 I.~70% Gityl~lanager;ldjuxtmrnt ~ _ 1 i - Si (1.9} (1.9) 0.00% { '~ March 29, 2011 -10- PROPOSED FY 2011-2012 RESOURCE MANAGEMENT PLAN ITEM # 60763 (Continued) BUDGET BY MAJOR PROGRAM AREA Investment for the Futux~ 3 % "°" '`mow L _ n ^~ ......~. s.~ _.. _... .~.:,. IT INCREASES THE CITY'S USE QF DEBT • The City has known backlogs in asset revitalization and ~ infrastructure maintenance • The City is getting favorable bids on infrastructure: proj~ • ' Xnterest rates are low ~~ • The City has a AAA bond rating from all three rating agencies • Our Bond Advisor supports this move • This budget increases the City .Council debt indicator f Debt per Capita from $2,400 to $2,800 to meet current ~~~ .future demands _~ Debt capacity is set aside fog fuiuYe development project °~~e ~,~, ,..r-____.~__~..,..~~,.~~~.. ..~~~.. ~....__e _ _ _.~..~..~ _~,,,. March 29, 2011 -11- PROPOSED FY 2011-2012 RESOURCE MANAGEMENT PLAN ITEM # 60763 (Continued) CAPITAL BUDGET Proposed FY.20~0-I1 . F.~' 20ll-12 Difference Schools $ 35.0 `h 35.5 $ .~ Roadways. 45.1 131.1 86.0 Buildings 23.6 28.7 5.1 Parks andRecreation 33.6 12.0. (21.6) Utilities 33.6 67.1 33.5 Coastal 6.4 T,0 .6 Ecotioinic and Touristil 20.1 1 ?.3 (2.8} Development ComIT cC'o+nn,un~~ations ~~a 4.3 11.5 7.2 lnfominfiun Tcchnolog~~) CAPITAL FUNDING Proposed FY 2010-11 FY 20ll-12 Difference Yay-as-you-go X34.3 ~ 41.0 $ 6.7 General Fund $alance 3 l .5 23.9 ~ (7.6) Other Fund Balances 22.7 13.7 ' (9.0) State and Federal Funds 16.8 93.2 76.4 Bonds & Lease Purchases 87.5 ....133.3 45.8 Other Sources 9.5 ~ 5.1 (4.4} March 29, 2011 -12- PROPOSED FY ZOlI-2012 RESOURCE MANAGEMENT PLAN ITEM # 60763 (Continued) c IT RECOMMENDS CHANGES TO TAXES AND FEES ~~ • To help businesses: - Eliminates the machinery and tools tax -Eliminates the business license tpx (BPOL) on new businesses for the first two years • To fund critical services: - Raises real estate tax rate by 2 cents - Raises personal property rate on vehicles by20 cents - Establishes a solid waste fee of$10 per month (January 2012) -Raises the storrit-water fee by 7.S cents per ERU - Reflects the previously approved sewer rate increase of $2.58 per ~. month for the average household -- Increases various Parks and Recreationfeesto keep. ~p with rising service costs and to cover the initial staffing of Williams ~'~ Farm Recreation Center „~ , March 29, 2011 CAPITAL BUDGET BY MAJOR PROGRAM AREA -13- PROPOSED FY 2011-2012 RESOURCE MANAGEMENT PLAN ITEM # 60763 (Continued) REVENUE SUMMARY (includes rateadjustments) Budget FY 2010.11 Budget Fl' 2011-12 °4. Change !teal Bstate ~ m. _ S 473.6 ... ..., S 470.1 _. 0.74% _ __ Personal Property __ _ 118.6 _ _ 126.9 _ 7.02% _ _ General Sales _ 50.6 __ __ 53.0 ........ _. 4.67% __ _ Utility Tax . _.-- 25.2 25.4 _e ... _, __. 1.11% _ _~_ _ VA Telecommunications j. 22.0 20.1 8 50% Business License ,~. 40.8 __. _ ... 39.9 _ 2.28% Cable Franchise 6.5 7.0 7.24% Restaurant Tax 48.2 51.8 7.40% _, Amusement Tax. ,i, 5.7 5.3 -6.33% Hotel Room Tax 22.7 25.1 10.97% .. _ .... Cigarette Tax __ .. ,!. - 12.7 _ __ ... _. 11.8 w.~_ 7.41% Fund Balance a 51.1 46.1 -9.72% r Utility Fees 120.5 133.0 10.35% Other Revenue ~ 138.1 .. 127.5 -7.72% -___ Waste Collection Fee - 7.0 0.00% State Revenue a 439.0 435.3,. _. -0.85% ;, Federal Revenue 128.5 153.4 19.40% 1 Y. i ~ SOto 400. ~~ 211 tfP3 (~,; c` q`' q~' qw q~' qw q~' q~' A~ q'~ q~' qw q~ q~' q~' 0w q~' 0~' q~' q~' q~' 0w q~' q~' q~' 0~' tc _ ~~~¢gyggy~p~~pq~~~pyhqq~ry,~pyrypgh~~py~gh3,~by~q~q~py~gghp,~p~~q~p~pypgq~y,~py~gyy,~pyygq~~gy~qq~aqqy~q, %y'4 : P`'~ ~tiC~~,~'yy~tih~~.~'VhftiC~~,~'Lysyy~~,i1~'y30~yn~'Lyy~yhq~g1y~y0~~p1yy~~~ply~yC~yyyyyyy~~y'~y~60~~~0~~¢O~~gOq~ ~. ~~ s- ~~". ~._.,._._. ..__~-y .,. ._®~,.. __~ .nay._~m.~, ,. ~_ ...,.,,,_ ~.._ March 29, 2011 -14- PROPOSED FY 2011-2012 RESOURCE MANAGEMENT PLAN ITEM # 60763 (Continued) LOW IMPACT ON THE TAXPAYER. • While the cost to families will increase from the current year to next year by $12 per month -they are still paying $50 per year less than they did in-2009 • And they would pay more to live in any other Hampton.. Roads community: Total Annual Takes & Fees Paid ~;_= Virginia Beach $3,558 Chesapeake + $320 Norfolk + $841 Portsmouth + $1,308 Suffolk +.$194' I Campton + $452 . _ Newport News + $642 IT DOES.MAKE CHANGES TO SCHOOLS' BUDGET &CIP • There is a reduction in the Schools' Operating Budget of $1.9 - ..Million for their share (51.3%) of the elimination of machinery and tools and BPOL on new businesses. No other changes were »tade to the School's Budget • ~t its ll~urch 1 S~~' meeting, the School Board withdrew its offer of returning $14.:5-Million in surplus funds from the Schools Risk Management Fund - This budget recommends that the $14.5-Million be used not for Old Donation Center/Kemps Landing Magnet School replacement, but rather to address public safety infrastructure backlogs and maintain BRAG funding - .Phis lem~es the remaining surplus of.~5.5-Million to advance the Old 'Donation Center/Kemps Landing Magnet Schootproject • The CIP does not recommend continuation. of energy performance contracts due to the high costo, f financing March 29, 2011 -IS- PROPOSED FY 2011-2012 RESOURCE MANAGEMENT PLAN ITEM # 60763 (Continued) IT IMPROVES OUR FINANCIAL POSITION FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 (Proposed) (Projected) (Projected) (Projected) (Projected) I $110.0) j -__..___-__ ~_ _._.._... ...------ ._ i $120.0) I.-. .~-._..__....._._ ._.......... ~~ ................... .._.....__ ._, _...... $(19 1) $(22.5) $130 0) .._-_ . _ _,.._ ..._......... _ ....................... -- _ o $131.1) $130.2) ~ $l40 0) -------- ~ E $(38.0) .__ . $(414) $(50 0) E .. Deficit is reduced by ... _.. ~(~ 4).. ..... -.._ . -._ $1G rnillion $1~.1- a $160.0) .~..._ _--_____.._..._~~_-...._ $(62.2) $(70.0) 1______~. ____- _ ..._.____.__.~_ •In FV2012,thebudgetisbalanced;therefore,theoriginal ~FiveYearForecast(November2010) deficit from the Five Year Forecast was eliminated. lof PFOpOSed FY 2011-12 Budget PrOjeCtI0 r1 IT IMPROVES OUR FINANCIAL POSITION • Concerns beyond FY2011-12.. - Opening of Town Center (Thalia) Fire and Rescue Station will need 20 new staff - Opening ofJoint:Use Library will require 27 new staff - Rising solid waste disposal cos&s as our SPSA contract ends - Need far staffing at Williams Farm Recreation Center partially delayed unti12014, however will need 10 new. staff in 2013 - Health insurance premiums have not been adjusted for three years } ;, ~~ March 29, 2011 -16- PROPOSED FY 2011-2012 RESOURCE MANAGEMENT PLAN ITEM # 60763 (Continued) IT DOES NOT INCLUDE FUNDING FOR • Light Rail • Headquarters Hotel It does preserve debt • Pleasure HOllse POlnt capacity to do these when and if a decision is made j • Dome Site Development ~'-Sand Replenishment beyond Sandbrdge ~._, _._ ._ - - - ....~.~ ~ ~ _ ~ . .a, - _~.. _ t - - -, - Mrs. Whitesell advised the Budget includes two (2) policies to assist Staff in addressing low priorities of Neighborhood Channel Dredging and Sand Replenishment. However, only the Neighborhood Channel Dredging Policy is contained within the document (Resource Management Plan) for adoption. The Sand Replenishment Policy is contained in DRAFT form only. Proposed for Sand Replenishment is the engagement of a twelve (12) month process with the community, encompassing discussion of a wide variety of options to replace the lost federal funding. The Federal Government has not funded a permit for beach nourishmentprojects for many years now. Soliciting community involvement will help frame the issues and concerns into a more cohesive policy. CONCLUSION • This Budget and CIP maintains current services valued by the community at a low cost. - The total Budget grows by 2% or less than inflation (2.1 %) • City portion only grmvs by L4% even wlth rate increases • School portion groitits by 2.8% - It begins to restore maintenance funds lost by the recession - It addresses compensation issues with our workforce - It funds City Cozrncil 's Top priorities For more information on t{ie Proposed Operating Budget and Capital hnprovement Prog,rxt,~pleasesee i~bt~ov.com March 29, 2011 -17- PROPOSED FY 2011-2012 RESOURCE MANAGEMENT PLAN ITEM # 60763 (Continued) More information is available at www.vbgov.com, including the full Operating Budget and Capital Improvement Program documents Councilman DeSteph requested a list of cuts or changes to the Capital Improvement Program (CIP) and will place the remainder of his questions in writing. Mrs. Whitesell advised of her meeting with all the regional economists and the gentleman from the Federal Reserve Bank in Richmond in October to determine their thoughts on where the economy may be heading, prior to further projections for forecasting. There is building, although not robust, throughout the region, but has yet to impact the real estate revenue streams. Most national experts would agree the economy is turning around. March 29, 2011 -18- MAYOR'S COMMENTS ITEM # 60764 6:47 P.M. Mayor Sessoms referenced the Senate of Virginia and The Virginia House of Delegates Committees on Privileges and Elections Public Hearings re Redistricting A Public Hearing is scheduled at Hampton University Student Center Ballroom, 135 Marshall Avenue, Thursday, March 31, 2011, at 7:00 P.M. Robert Matthias, Assistant to the City Manager, will be attending and speaking for the City. Mayor Sessoms cannot attend due to previous commitments. Councilman Davis advised he would attend. The listing of all the Public Hearings on Redistricting was distributed and is hereby made a part of the record. March 29, 2011 The Senate of Virginia and The Virginia House of Delegates Committees on Privileges and Elections Public Hearings on Redistricting Thursday, March 31, 2011 7:00 PM Hampton University Student Center Ballroom 135 Marshall Avenue Hampton, VA 23668 Thursday, March 31, 2011 7:30 PM Loudon County Board Room Loudon County Govenunent Center 1 Harrison Street, S.E., Fifth Floor Leesburg, VA 20177-7000 Thursday, March 31, 2011 7:30 PM Roanoke Higher Education Center 108 North Jefferson Street Roanoke, VA 24016 Saturday, April 2, 2011 10:00AM Augusta County Govenunent Center Board of Supervisors Meeting Room 18 Government Center Lane Verona, VA 24482 Saturday, Apri12, 2011 10:30AM Fairfax County Goveniment Center Board of Supervisors Auditorium 12000 Government Center Fairfax, VA 22035-1100 Saturday, April 2, 2011 2:OOPM Southwest Virginia Higher Education Center SVHEC Conference Center, Classrooms 103-104 One Partnership Circle Abingdon, VA 24210 Saturday, April 2, 2011 7:OOPM Regional Center for Advanced Technology and Training 121 Slayton Avenue Danville, VA 24540 Monday, Apri14, 2011 10:00AM House Room D, General Assembly Building Capitol Square Richmond, VA -19- Item V-II. ADJOURNMENT ITEM # 60765 Mayor William D. Sessoms, Jr. DECLARED the City Council SPECIAL SESSIONADJOURNED at 6:48 P.M. Beverly O. Hooks, CMC Chief Deputy City Clerk uth Hodges Smith, MMC City Clerk City of Virginia Beach Virginia William D. Sessoms, Jr. Mayor March 29, 2011