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Home My WebLink About04262011 QUALITY ORGANIZATION BUDGET4/25/2011 Budget Workshop FY 2011-12 April 26, 2011 Quality Organization Quality Organization FY 2010 FY 2010-11 fY 2011-12 Quality Organization Actual Adjusted Proposed Change Budgeted Expenditures* $ 71,597,950 $ 73,783,961 $ 75,472,522 2.29% FTEs* 462.51 428.29 430.94 0.62% * Excludes the City Treasurer and Commis sioner of the Revenue, who presented as Constitutional Officers April 5th. - Business Area includes: City Attorney, City Auditor, City Clerk, City Manager, City Real Estate Assessor, City Treasurer*, Commissioner of the Revenue*, Communications and Information Technology, finance, General Registrar, Human Resources, Management Services, Municipal Council and Non-Departmental Departments - City Council Goals: Create a financially sustainable City providing excellent services - Proposed Fee/Taxlncreases: Real Estate Tax from 89C to 91C per $100 of assessed value Personal Property Tax from $3.70 to $3.90 per $100 of assessed value New fees per request: Check Reissuance $15, Check Pick-up $15, IR51099 Reissuance $15, and Reissuance Title for Surplus Vehicles $50 4.3Y of Total Operating R~~Aoc* 4/25/2011 0 ~ Expenditures Municipal C 0.796 Quality Organization City AuditorCity Clerk City Attorney 0\8% ~0.7% City Manager 4.7% ~ ~ 3.39'0 RealEState Assessor 3.80 Services Human Res 1.996 5.59'0 (Revenues Quality Organization Fees & Charges for Dedicated Funding State 5er~ Int local sfers) i% dance ~o a Finance 6.10 al Registrar 1.596 • 4/25/2011 ~, `S'~7 0 ~t ~ s> ~~ -- - 4~: o ~. .ti~v~ Communications & Information Technology April 26, 2011 Gwen Cowart 5 Communications and Information Technology - ~®~® Applications Support $6,418,202 $6,902,039 48.0 $7,028,510 49.0 $126,471 Systems Support $7,616,286 $8,014,273 43.0 $8,040,953 44.0 $26,680 Telecommunications $3,090,745 $3,438,055 18.0 $3,274,560 18.0 ($163,495) Geospatiallnformation $1,476,812 $1,710,167 18.0 $1,738,091 18.0 $27,924 Services Multimedia Services $1,433,236 $1,427,413 18.0 $1,427,217 17.5 ($196) Business Center $630,873 $649,753 10.0 $643,278 10.0 ($6,475) 53'0 1~ 9% 1% ^GeneralFund 4% ^ Personnel $~ ~ Print Shop ISF ^ Operations _ ^Capital Projects 509'0 ^Capital ISF ^Telecomm ISF ^ Reserves ~ , -. ^ Subscriptions ISF 6 Communications and Information Technology Technology Project Management Office InfoSec Support Center Technology Services Mail Services City/Schools Printing CIP ISF Subscriptions Reserves for Contingencies $593,664 $686,921 6.0 $381,404 $402,080 3.0 $995,012 $479,851 2.5 $0 $0 - $202,868 $204,432 4.0 $2,744,610 $2,439,119 12.0 $1,618,196 $3,076,463 - - $940,892 $0 - ($686,921) Total $0 - ;^-02,080) $0 - (5x79,851) $1,797,219 15.0 $1,797,219 $204,169 4.0 ($263) $2,051,822 6.0 ;5387,;?97! $202,170 2.0 $202,170 $3,509,495 - $433,032 $943,723 $2,831 $27,201,908 $30,371,458 182.5 $30,861,207 183.5 $489,749 ~~~ Communications and Information Technology Eliminate Printing Services' In-house Offset Printing -$385,112 -6.0 Add Staff Capacity to address Capital Projects Operating Budget $483,758 5.0 Capital Improvement Budget $202,170 2.0 Sustain Computer Replacement Program at FY 2011 Level $708,184 - Three Divisions Merged into new Technology Services - - Division Reduce Communications and Technology Lifecycle Maintenance -$372,718 - Program Reduction Criteria: - Mitigate impact on end-users and customers - Mitigate impact on core technology operations and maintenance - Mitigate impact on existing infrastructure and applications - Reduce service costs through service efficiencies s 4/25/2011 4 4/25/2011 Communications and Information Technology FY12 Department Initiative Highlights FY 2012 CIP Funding to Launch Integrated Public Safety Projects r Police Records Management - CAD Replacement ~ VBAIert Replacement i ALI DB / NG 9-1-1 Analysis - Initiate transition to Voice Over IP (VoIP) r' Geospatial Information Services (GIS) On-line mapping enhancements r' Intranet Redesign and Enhancements y Oracle Financials/HR/Payroll Release Upgrade ~ Begin Windows 7 OS Deployment and MS Office 2010 Deployment 9 Finance April 26, 2011 Patricia Phillips ~o c 4/25/2011 ~J Finance Department FY 2011-12 Budget $4,632,305 28.5% $111,100 0.7 ^ Payroll, Purchasing, Comptroller, LVR, Admin ^Transportation Projects ^ Risk Management u 0 4/25/2011 Finance Department Trends New Types of Bond Issues with greater complexity Recovery Zone (RZ) r Build America Bonds (BAB) Qualified School Construction Bonds (QSCB) - Management of SPSA billing and contractual issues Virginia Retirement System modernization requires additional payroll effort, technology changes, testing and training ARRA and Grants requirements are more complex, greater volume, and require higher levels of approvals and authorizations for reimbursements y Faster rates of accounting changes, GASB and GFOA requirements, higher public expectations for transparency, reporting and accountability Minority Business Program and VDOT Transportation Projects with Civil Rights Component 13 u Finance Department Highlights r Roadway Initiatives and Urban Construction Program Civil Rights Compliance - two additional FTEs Minority Business program requirements continue to increase -more policy review, data collection, vendor monitoring and outreach efforts using Purchasing staff v Risk Management cash transfer will fund current liability at 36% from 26%- 70- 100% is recommended for AAA rated municipalities Focus on establishing policies and procedures to provide internal controls Vendor file maintenance is needed to prevent duplicates and errors; to meet IRS requirements including foreign vendor expenditure reporting; to meet 3% withholdings; and to avoid increased IRS penalties Testing design, plan and execution for upgrades for various software including CAFR software, Risk Management Software, InSITE, and other technology initiatives. Unfunded technology efforts result in more manual processes, longer processing time, less data and decreased capacity in other areas la • 4/25/2011 re'G~ NA-ems yG r _.a• a i ~ o° ~ ~~ Human Resources April 26, 2011 Regina Hilliard 15 L~ C , J Human Resources Director's Office $858,151 9.0 $714,097 8.0 $-144,054 Employee Relations $399,743 5.0 $399,742 5.0 $-1 Staffing & Compensation $1,174,082 16.0 $1,136,975 15.0 $-37,107 Services Learning & Development $568,493 5.0 $561,811 5.0 $-6,682 HR Police Services $90,258 1.0 $90,258 1.0 $0 Member 0 0.0 $106,554 1.0 $106,554 Communications 16 r: C~ Human Rights Commission Occupational Safety Occupational Health Total ~~ ,a Human Resources 0 0.0 $65,896 1.0 $65,7 $247,267 3.0 $247,267 3.0 $865,730 8.0 $829,928 8.0 $-35,7 $4,203,724 47.0 $4,152,528 47.0 $-51,: General Fund ~i ^ Personnel ^ Operations v Human Resources City Positions per each Human Resource Position lso lao 130 120 110 100 2005 2006 2007 2008 2009 2010 2011 2012 (adj) (prof) Fiscal Years Note: The department lost 6.13 positions in FY 2011 resulting in a ratio of 145 City employees per Human Resource staff. is 4/25/2011 Human Resources Non-Departmental . ~- .. ... Tuition Assistance $436,968 $0 Class Act Awards $15,354 $0 19 Human Resources FY 2011-12 Trends & Highlights - Efficiency Enhancements Driver Alert Program Consolidation of Workforce Planning & Development and EEO/Diversity & Inclusion Plans Review of Testing & Promotional Processes Increased Focus and Resources on Federally Mandated Programs and Services New Employee Development Tools Performance Management 360° Assessment Mid-Management Development Program Coaching for Commitment Course zo ~~I i 4/25/2011 1a City Attorney April 26, 2011 Mark Stiles z~ ® .~ City Attorney OPersonnel ^Operations zz • 4/25/201 i ~~ Legal Services 3,542,705 39.96 3,512,286 39.61 -30,419 Total 3,542,705 39.96 3,512,286 39.61 -30,419 4.1% 4/25/201: City Attorney Proposed budget eliminates one vacant part-time paralegal position but retains funds from position to supplement recruiting and retention opportunities for existing positions. Additional reductions to operations budget. - No reduction in services. 2.5 attorneys and one support staff paid by and assigned to Schools pursuant to Cooperative Agreement ($350,625). Widening gap illustrated by market salary survey poses challenges for attorney retention and recruitment. 23 C~~ City Attorney 96% ®In-House Cost Per Hour ®Average Outside Counsel Cost Per Hour (Effective Cost Per Hour for all Legal Services 24 12 FV OS FY09 FY10 FV08 FY09 FY10 Percentage of In-House Legal Services ~~~~ City Attorney FY 2011-12 Trends & Highlights - Ongoing legal work in support of BRAC Program. - Legal support and structure for economic development initiatives including development of the Dome site and construction of a convention center hotel. Implementation of Strategic Growth Area plans, including Oceanfront form-based zoning ordinance. - Significant increase in real estate activity in connection with planned and ongoing road projects. Decennial redistricting and DOJ Voting Rights Act preclearance submission. Legal support for implementation of Neighborhood Dredging Program. - Transfer of Cape Henry Beach litigation to in-house attorneys. - FOIA compliance -increasing service demands. zs City Auditor April 26, 2011 On behalf of Lyndon Remias: Chris Ford z6 4/25/2011 13 4/25/2011 Office of the City Auditor Office of the City $574,469 6.0 $571,714 6.0 ($Z,755j Auditor Total $574,469 6.0 $571,714 6.0 Funding for Independent Financial Services is not included in Office of the City Auditor's Budget. It is funded through anon-departmental budget unit. Operations 4.2% ^ Personnel ^ Operations z~ Office of the City Auditor Continue to promote accountability and integrity in City operations by providing quality audit services. Continue management and oversight of the City's Fraud, Waste and Abuse Prevention and Reporting Program, including the Fraud Hotline, available to citizens and employees as mandated by the State. ~ Continue administration and oversight of the mandated external audit of the City's Annual Financial Report (CAFR) and Single Audit Requirements for Federal funding. Any reduction on funding would have severe impact on our ability to serve City Council, the Audit Committee, City leadership and Citizens. zs • 14 4/25/2011 0 Office of the City Auditor FY 2011-12 Trends & Highlights FY2010 -Completed 11 attestation engagements and performance audits resulting in improved financial and management controls, processes, contract performance, system efficiency and quality of services. Generated approximately $1,015,779 in actual savings. - Public is demanding that there is accountability and oversight over the use of taxpayer funds. We fill that role. Investigated 39 allegations of theft, misuse of City resources, waste and abuse. Worked with Human Resources and City Attorney's Office to take disciplinary action resulting in four terminations, four s uspensions, one written reprimand and eight verbal or written counsel. - Helped train over 2,159 employees in City ethics. zQ I~ Municipal Council and City Clerk April 26, 2011 Ruth Hodges Fraser 30 15 4/25/2011 ~~ Municipal Council lel $344,515 11.0 $344,515 11.0 0 ng $208,833 $198,156 , 7) $553,348 11.0 $542,671 11.0 ($10,677) FY 2011-12 Proposed Operating Budget Revenues Expenditures ^ Personnel ^ Operating 31 .] City Clerk Personnel $474,596 6.0 $474,590 6.0 Operating $65,184 $64,621 S5 Total $539,780 6.0 $539,211 6.0 °$5 FY 2011-12 Proposed Operating Budget Revenues Expenditures 12.0% ~~ :~ - ^Personnel ^Operating 32 16 4/25/201: City Real Estate Assessor April 26, 2011 Jerry Banagan 33 I~~ Real Estate Assessor ~i ~•. ^6eneral Fund ^Personnel pOperations 34 0 17 Real Estate Assessor $2,795,443 34.0 $2,838,546 34.0 $43,103 FY 2011-12 Budget 8 3/ 4/25/2011 l~ Real Estate Assessor FY 2011-12 Trends & Highlights - Increased applicants for Senior/Disabled Tax Relief Program - Applicants for new Disabled Veteran Exemption - Increased mailings add to printing and postage costs - Increased software cost to Marshall Swift Valuation Service - Increased cost of continuing education for appraisal staff 35 i li General Registrar April 26, 2011 Pat Harrington 36 18 4/25/2011 ~n General Registrar ^ Personnel ^ Operations ^ City General Fund ^ State 37 I~ General Registrar Possible new precincts due to redistricting - Mailing of new voter cards by 2011 - Both of the above items are mandated by the State 38 19 Personnel $734,727 12.03 $729,747 12.03 -$4,980 Operations $387,038 - $377,179 - -$9,859 Total $1,121,765 12.03 $1,106,926 12.03 -$14,839 FY 2011-12Expenditures FY 2011-12 Revenue 4/25/2011 V~ General Registrar FY 2011-12 Trends & Highlights - Electronic Pollbooks - Redistricting - Mailing of new voter cards without social by December 2011 34 L Management Services April 26, 2011 Catheryn R. Whitesell C 40 i0 4/25/2011 • Nllk Management Services .. Management and $1,448,577 15.00 $1,461,870 15.00 $13,293 Budget Analysis Total $1,448,577 15.00 $1,461,870 15.00 $13,293 9.79'0 _~~ ~~ ~•. 90.3% ^Personnel ^Operations ^GeneralFund ai Management Services FY 2011-12 Trends & Highlights The City's FY 2010-11 Operating Budget and CIP received the GFOA Distinguished Budget Presentation Award. ~ The recent transfer of Facilities Management from Management Services to Pubic Works resulted in the loss of three FTEs. The department has lost four FTEs since 2008 while retaining the workload, a decrease of 21%. - Management Services performed two comprehensive program evaluations and initiated three performance measurement pilot projects with the Organization and Development Office. r Management Services will continue to: Work with departments to improve efficiencies Monitor General Assembly legislation which impacts City and School finances. Assist departments with grants and other competitively attained funds. a2 • 2~ • City Manager April 26, 2011 James K. Spore 43 ip~ ~1,R Jlanager's Office $1,674,533 12.00 $1,681,021 12.00 $6,488 nization Development $326,388 3.00 $326,728 3.00 $340 __ of Volunteer $120,817 1.50 $117,817 1.50 ($3,400 urces a & Communications $365,919 4.00 $360,559 4.00 _ ,._ . P $2,487,657 20.50 $2,486,125 20.50 ^;$1,532) S.S~o ~~', ^ General Fund ^ Personnel ^ Operations as 4/25/2011 22~ it City Manager's Office 4/25/2011 ~1~~ City Manager's Office FY 2011-12 Trends & Highlights - 18,000 volunteers placed at an estimated cost savings and cost avoidance of $19,028,644 or 3.4 cents on the real estate tax rate. - 36% reduction in City Manager's Office staff in the last five years. - Coordination of, and response to, citizen concerns and correspondence for Mayor, City Council and City Manager's Office. Media and Communications Group restructured and decentralized to align the City with the shift in how citizens want to receive information. - Coordination of City's legislative interest in over 3,000 items. - Developing and testing a new system for measuring program outcomes and results. - Supporting Envision Virginia Beach 2040 Committee. - Developing new Strategic Plan to address City Council's vision and goals. 45 • Non-Departmental April 26, 2011 Catheryn R. Whitesell 46 C 23 C: Non-Departmental Revenues Dedicated Taxes 4.9% Fund Balance Fees Lynnhaven Mall TIF 0.5% 0.9% as 4/25/2011 24 4/25/2011 s Non-Departmental Expenditures Lynnhaven Mall TIF 5.9% Community Org. Grants Employee Special Leases 1.4% Benefits Independent Financial 5.2% 16.0% Services 0.5% Regional Part 6.1% Revenue Reimbursements 49.990 Benefits ministrat 2.0% Vehicle Replacements 13.0% 49 Non-Departmental ~M J Regional Participation Examples Community Organization Grants (COG) Eastern Virginia Medical School Examples of On-Going Grants Hampton Roads Economic Development .Beach Health Clinic Alliance ~ Foodbank of Southeastern Virginia Hampton Roads Planning District ~ Endependence Center, Inc. Commission Hampton Roads Military and Federal Facility Alliance Non-Departmental Program Increased $1,595,589: COG/Regional Participation Grant Funding increased to $1 per capita New employee special benefit cost shifted from State to City --line of duty payments for public safety personnel $800,000 Health insurance for retires increased by $360,000 Tax relief decreased by $670,191 Vehicle replacements increased by $1 million to address some of the backlog In total, the final Non-Departmental budget increased 5.3%. so 25 4/25/2011 ~I~ Non-Departmental FY 2011-12 Trends & Highlights Maintains City commitment to provide the employer's share of health and dental for eligible retirees - Takes over the cost of line of duty payments from the State - Provides real estate tax relief to qualified elderly and disabled citizens - Vehicle replacements funded at $4.1 million; $1 million additional than last year but $1 million less than normal funding levels. - Community Organization Grants funding is being restored to $1 per capita r Regional Participation funding held to FY 2011 levels si \J 26