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Home My WebLink About04052011 ECONOMIC VITALITY PRESENTATIONBudget Workshop FY 2011-12 April 5, 2011 Economic Vitality 1 Economic Vitality FY 2010 FY 2010-11 FY 2011-12 % Economic VitalityActualAdjustedProposedChange Budgeted Expenditures$ 82,115,572$ 90,606,933$ 90,147,897-0.51% FTEs229.91222.52221.52-0.45% 5.2% of Includes Agriculture, Convention & Visitor ? Total Bureau, Economic Development, and Housing Operating & Neighborhood Preservation Departments as Budget well as Strategic Growth Area Office City Council Goals: ? Grow the economy ? Revitalize neighborhoods and plan for the future ? Be a competitive first class resort ? City Council Top and High Priorities: ? Dome Site –Light Rail Corridor ? Convention HQ Hotel –ITA Plan ? Fee/Tax Changes: ? Elimination of Machinery and Tools tax and ? exemption from business license tax for new businesses for first two years of operations. New beach wedding permit and event permit ? application late fee 2 Economic Vitality Expenditures Revenues 5% 3% 3% 8% 25% 28% 55% 49% 10% 4% 10% Dedicated Funding Other Local (Transfers) Agriculture Convention and Visitor Bureau Fees & Charges for Services Economic Development State and Federal Housing and Neighborhood Preservation City Strategic Growth Area Fund Balance 3 Economic Vitality Funds Major Revenues: ? Dedicated Revenues Agriculture Reserve Program (ARP) – 14% Tourism Investment Program (TIP) – 23% Tourism Advertising Program (TAP) – Central Business District –South TIF – Town Center Special Service District – Fees and Charges 9% Facility Rental at Convention Center – 33% Farmers Market – Special Events at the Oceanfront – 2% Parking lot and parking meter fees – State and Federal 10% 6% Housing Programs – 3% General FundTIP TAPParking Enterprise Town Center TIFTown Center SSD ARPHousing Programs 4 Agriculture April 5, 2011 David Trimmer 5 Agriculture $ Change FY 11 Adjusted to FY 10-11 FY10-11 FY 11-12 FY 11-12 FY 12 Program UnitAdjustedFTEProposedFTEProposed Director’s Office311,8313.00311,8313.000 Cooperative Extension262,4956.00262,4956.000 Farmers Market189,4302.00191,4692.002,039 ARP8,626,0381.006,054,4561.00(2,571,582) Total9,389,79412.06,820,25112.0(2,569,543) FY 2011-12 Proposed Budget 10.5% 11.2% 3.1% 38.1% 88.8% 48.3% Personnel $715,397Operations $208,720 6 General FundARP Special Revenue Fund Debt Service $3,296,134Transfers-Out $2,600,000 Agriculture FY 2011-12 Agriculture Trends & Highlights Growth in Virginia Beach’s Agriculture continues to be strong with an • estimated economic impact of $122 million in 2010. (Five year average $114.2 million) All facets of Agribusiness remain strong: production farming (crops), fruits • & vegetables, tourism, farmers markets, ARP, equine, etc. Farmers Market high profile events and community interaction make it a • place to visit, to shop, and take part in activities and AG education. (500,000 estimated annual attendance; 109 events planned for 2011) 7 FY 2011-12 Agriculture Trends & Highlights Agricultural Reserve Program enrolls 572 acres (56 development rights)in • 2010, through March 2011, 8,831.66 acres enrolled. High interest in community to preserve farmland and expand Agriculture. Continue to work with the Virginia Department of Agriculture and • Consumer Services (VDACS) on farmland preservation. In 2010 VDACS reimbursed the City $316,996 in easement acquisitions. Increase focus on Agritourism(partner with Convention and Visitors Bureau • on farm tours, Farmers Market tours, Agriculture education). Agriculture volunteer programs continue to grow (4-H, Master Gardeners, • Agriculture Educational programs, Extension programs, Farmers Market). 8 Convention & Visitors Bureau April 5, 2011 James Ricketts 9 Convention and Visitors Bureau $ Change FY 11 Program UnitFY 10-11 FY10-11 FY 11-12 FY 11-12 Adjusted to General FundAdjustedFTEProposedFTE FY 12 Proposed Director’s Office990,4891010 1,095,095104,606 Tourism Marketing and Sales432,6576431,8656(792) Sports Marketing455,5823314,8233(140,759) Convention Marketing and Sales941,55512928,34512(13,210) VB Convention Center5,870,13672.135,818,76972.13(51,367) Total CVB General Fund8,690,419103.138,588,897103.13(101,522) 10 Convention and Visitors Bureau Program UnitFY 10-11 FY10-11 FY 11-12 FY 11-12 $ Change FY 11 Adjusted to TAP Fund and TGIFAdjustedFTEProposedFTE FY 12 Proposed Tourism Advertising7,915,73708,667,6610751,924 TAP Transfers/Reserves59,94356,838 (3,105) Visitor Centers1,170,48210.391,155,72110.39(14,761) Total TAP FUND9,146,16210.399,880,22010.39734,058 TGIF-Locals Campaign100,0000100,00000 Total CVB Budget17,836,581113.5218,469,117113.52632,536 FY 2011-12 Proposed Budget 1% 34% General Fund 46% 53% 66% Personnel TAP Fund Operations TIP Fund 11 Convention and Visitors Bureau FY 2011-12 Trends & Highlights Additional funding needed to aggressively market, staff and support ? new projects as they go online Dome Site ? Headquarters Hotel ? LaskinRoad Gateway ? 19Street/Central Beach th ? Competitive tourism destination funding increases for marketing and ? advertising Need to preserve TAP Fund and TGIF for intended purposes ? Convention Center, which is in its sixth year, will require capital ? replacements and will experience increased maintenance costs Revenue Considerations ? Paid Parking at VBCC ? Increase lodging tax to raise additional TAP Fund revenue ? Retail component for Visitor Center Operations ? 12 Economic Development April 5, 2011 Warren Harris 13 $ Change FY 11 Adjusted to FY 10-11 FY10-11 FY 11-12 FY 11-12 FY 12 Program UnitAdjustedFTEProposedFTEProposed Director’s Office$2,121,41615$2,044,39515($77,021) Town Center SSD$1,984,1400$1,999,1400$15,000 Town Center TIF$5,734,0360$5,716,8170($17,219) Capital Projects N/A1$72,2971$72,297 (APZ FTE) Total$9,839,59216$9,832,64916($6,943) 1% 5% 14% 20% 1% General Fund 20% 21% 59% Town Center TIF Town Center 59% SSD PersonnelOperations Marketing TravelDebt Service TIF 14 Special Services DistrictCapital Prjojects Director’s Operating Budget lowest since 2005, and less two ? FTE’s Strategies for 2012: ? Update Target Industry Sectors ? Continue New and Existing Business Programs ? Continue Workforce Development Initiatives ? Continue Expansion of Town Center and Implementation of Strategic ? Growth Areas Great Things are happening…. ? Virginia Beach Top 20 areas for Economic Performance during the Recession ? (Brookings Institute) Virginia Beach Second Best Place to find a Job in 2010 ? (Forbes) But……………………………………………. ? 15 FY 2011-12 Trends & Highlights Competition to Virginia Beach (Example): ? Fairfax County: 50 FTE’s 261 Trips Marketing and Events Per Year, 5 ? International offices. VS. Virginia Beach 15 FTE’s and 45 Marketing and Events Per Year, 0 International ? offices Effect---Virginia Beach Continues to Lose Competitive Advantage and the ? Funding Level is not Competitive. Critical Areas Remain Unfunded: International Business Attraction, Bioscience ? Expansion and Attraction, and Strategic Growth Area Implementation Tools. 16 Housing and Neighborhood Preservation April 5, 2011 Andrew Friedman 17 Housing & Neighborhood Preservation $ Change FY 11 FY 10-11 FY10-FY 11-12 ProposedFY 11-Adjusted to FY Program UnitAdjusted11 FTE12 FTE12 Proposed Administration & 1,129,240111,195,4221166,182 Neighborhood Preservation Code Enforcement 2,334,962302,280,56529(54,397) Developmentand 1,217,64961,229,178511,529 Rehab of Affordable Housing Home Ownership and 802,5611747,0441(55,517) Owner Rehab AffordableRental 18,683,6061919,590,53920906,933 Housing & Homeless Programs Total 24,168,0186725,042,74866874,730 18 Housing & Neighborhood Preservation Uses Debt Service Transfers-Out Personnel 0.7% 0.5% 18.2% Operations 3.6% Direct Services 76.9% 19 Housing & Neighborhood Preservation General Fund Revenues $2,171,600 8.7% Fees $65,800 0.3% Other Federal Funds (CDBG/HOME/ESG / HOPWA) 5,672,141 Section 8 Funds 22.8% $17,133,207 68.4% 20 Housing and Neighborhood Preservation Key Changes in Services To balance the budget to available funding, we have eliminated one vacant ? code enforcement inspector position. We expect to be able to minimize the impact of this elimination through ? the implementation of a wireless inspection recording system beginning in the fall of 2011. We are expecting to absorb certain inspection duties from the Planning ? Department’s Zoning division –enforcement of the recreational and commercial vehicle requirements. We believe this function is consistent with the mission of protecting neighborhood quality, its enforcement does not require zoning expertise, and ultimately will result in a more efficient enforcement effort. 21 Housing and Neighborhood Preservation FY 2011-12 Trends & Highlights CDBGand HOMEPrograms (approximately 23%of our budget): Funding ? for Fiscal Year 2011-2012is not yet known due to lack of an approved Federal budget. Housing Choice Voucherprogram (approximately 68%of our budget) ? funding for calendar year 2011 is not yet known due to lack of an approved Federal budget. Continuing imposition of additional Federal mandates for reporting and ? certification including: Mortgage loan officer certification; Federal Funding Accountability and Transparency Act requirements for grants to local organizations. Lighthouse Center project continuing –funded in 2010-11 CIP. ? 22 Strategic Growth Area Office April 5, 2011 Barry Frankenfield 23 Strategic Growth Area Office 24 Strategic Growth Area Office $ Change FY 11 Adjusted to FY 10-11 FY10-11 FY 11-12 FY 11-12 FY 12 Program UnitAdjustedFTEProposedFTEProposed Strategic Growth Area Office$903,6805$532,4275-$371,253 Resort Programs/Special 505,8475376,7425-129,105 Events TIP/Special Events3,091,656NA3,495,585NA403,929 Parking Enterprise Fund3,872,17853,302,9915-569,187 Total$8,373,36115$7,707,74515-665,616 15.8% FY 2011-12 Budget 909,169 11.8% 3,302,991 General Fund 42.9% 84.2% 3,495,585 TIP Special Events 45.4% Parking Enterprise PersonnelOperations 25 Strategic Growth Area Office SGA Office: ? The Facilities Management Office was transferred to Public Works Resort Programs/Special Events: ? Reduction is due to the transfer of Rock ‘n Roll marathon ? expenditures to the TIP Special Events budget Two new fees are also recommended: ? To reserve the beach for weddings, there is a $500 permit fee. ? For late special event permits, dependent upon the ? delinquency period, the late fee ranges between $10/day and $30/day. TIP (Tourism Investment Program)Special Events: ? Receives funding from Resort programs and Rock ‘n Roll ? marathon, and new funding was allocated for the Virginia Symphony contract While the budget increased, significant reductions were ? made but were offset by TIP revenue projections Parking Enterprise Fund: ? The change is attributable to an accounting measure. The parking management contract was renegotiated and instead of gross revenues coming to the City , net revenues are received. 26 Strategic Growth Area Office FY 2011-12 Trends & Highlights Management of Economic and Tourism Development CIP: ? Burton Station development, SGA plan coordination, land use regulations, light rail transit plans Public Involvement and Support: Laskin Rd. Gateway, Burton ? Station community, Green Ribbon Committee, and Envision Virginia Beach 2040 Resort Management ? Cafes and vendors contributed over $700,000 to TIP ? 422 special event permits were issued ? 29 outdoor event permits raised in excess of $4.5 ? million for non-profit organization charities ? Special Beach Event programs significantly impacted ? tourism Management and Maintenance of Parking Facilities: ? Oceanfront : 2 parking garages, 9 lots and metered on-street ? parking, over 600,000 cars parked in 2010 27 Town Center: 4 garages and on-street parking operations ?