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Home My WebLink AboutAPRIL 5, 2011WORKSESSION MINUTES VIRGINIA BEACH CITY COUNCIL Virginia Beach, Virginia April S, 2011 Mayor William D. Sessoms, Jr., called to order the CITY COUNCIL BUDGET WORKSHOP re BIKEWAYS and TRAILS PLAN in the City Council Conference Room ,Tuesday, April S, 2011, at 1:30 P.M. Council Members Present.• Rita Sweet Bellitto, Glenn R. Davis, William R. "Bill" DeSteph, Harry E. Diezel, Robert M. Dyer, Vice Mayor Louis R. Jones, Mayor William D. Sessoms, Jr., John E. Uhrin and James L. Wood Council Members Absent: Barbara M. Henley [had an accidental fall and now recuperating from surgery at home) Rosemary Wilson [Meeting with Governor McDonnell Re Regional projects) -2- C ITY COUNCIL BUDGET WORKSHOP BIKEWAYS and TRAILS PLAN (Continued) Mayor Sessoms advised he met with Norfolk Mayor Paul Fraim and his staff to discuss the presentation plan and funding from Governor McDonnell re other Regional Projects yesterday, April 4, 2011. Virginia Beach might be the model for the TPO (Transportation Planning Organization). Virginia Beach made out very well with the funding from the Governor. The presentation by City staff was superb. The City Manager introduced Cindy Curtis, Director -Parks and Recreation and Deputy City Manager, who was filling in for Susie Walston and expressed appreciation for her "double duty ". Cindy advised they had been fortunate to work closely with the Planners and Traff c Engineers in the development of this Bikeways and Trails Plan, which is something that is believed to further improve our community in which she cited as the Big T (Transportation, All Multi-modal, as well as Major Road Corridors). Ms. Curtis introduced Bruce Drees, Chair -Bikeways and Trails Committee, and Wayne Wilcox, Senior Planner -Parks and Recreation, who presented the Plan and its updates. Both of these gentlemen have worked diligently to discern community interests and desires for improved bikeways as well as pedestrian and trail systems. This Plan reinforces our vision in terms of desires for an effective transportation system, development of `places to have fun " and opportunities to view our beautiful natural settings throughout the City. The Planning Commission, on March 9, 2011, unanimously supported this Plan. After the meeting on April 26, 2011, the intention is to bring a Plan back to City Council for consideration as an Amendment to the Comprehensive Plan. Overview The three (3) phases A new vision articulated for Bikeways and Trails The five (S) E's and thirty-eight (38) Goals. BTAC's top priorities Approach Summary Phase 1: Public Input Open houses, stakeholder meetings, technical meetings and online surveys Diverse vantage points -not just cyclists Four broad themes The City is not bike friendly Connectivity Sharing the road Other (crime, maintenance, horses, costs...) Phase 2: Technical Studies and Writing Planning and Public Works Issues Regulations, Strategic Growth Area plans, Capital Improvement Plan opportunities, repaving schedule, standards Policies Lighting, signs, maintenance and repair Bikeway and trail routes Transit and utility corridors, commuters, bottlenecks -3- C ITY COUNCIL BUDGET WORKSHOP BIKEWAYS and TRAILS PLAN (Continued) Phase 3: Reviews and Approvals Return to primary stakeholders Review with other departments Planning Commission on March 9 Recommend unanimously for approval as an Amendment to the Comprehensive Plan Wayne Willcox, Senior Planner -Parks and Recreation, stated there is a new Vision that the Bikeways and Trails Advisory Committee has articulated. VISION Virginia Beach will be a City where people can walk, run and ride anywhere safely, efficiently and enjoyably. How the Plan Is Organized The 5 E's Education Encouragement Enforcement Engineering and Facilities Evaluation and Planning Top Priority Goals Education: Each E has: Goals Implementation Tasks That lead to Policies Priorities Motorists, cyclists, pedestrians and other road users will know and abide by the rules of the road Encouragement: Virginia Beach will be seen as a destination for bike and pedestrian tourism -4- CITYCOUNCIL BUDGET WORKSHOP FY 2011-2012 MANAGEMENT RESOURCE PLAN REVENUE REVIEW 2:00 P.M. The City Manager introduced Catheryn Whitesell, Director -Management Services, to provide a brief review of the City's Revenue. The Recession ended in June 2009 but recovery is slow. This is determined by the National Bureau of Economic Research, which lasted from December 2007 to June 2009. The highest unemployment rate for this City was in January 1982 (7.2%). February 2011 Unemployment 160 > 90 indicates 140 stable economy 120 100 ~ . 1 \ 1 ~ 1 ~N~ 80 60 ' 40 < 50 indicates `" 20 contracting economy Low Point: February 2009 - 25.3 O Q1 O O .~-~ •--~ N N M O~ O O O O O O O C C ~ C ~ C M '~ O O ~ C ~ L!1 L.f) l~ V7 n n O W Q~ O~ O O O O O O O O O O O O ~--~~,~~-+ ~ C ~ C = C 7 C ~ n ~ n f0 n ~ ~--~ ~ -- ~--~ (0 ~ ~ ry fp r-i f0 ~--~ f6 ry n ~ v r- n n ~-- ~ n n r'i ~ n , >, ~ , Source: The Confidence Board ! -5- C ITY COUNCIL BUDGET WORKSHOP FY 2011-2012 MANAGEMENT RESOURCE PLAN REVENUE REVIEW Foreclosures in Virginia Beach 1,800 1,600 1,400 ;1,200 ~ 1,000 xe 800 600 400 200 0 ~~ ~°~ o° oti oti o'~ o°` o`~ o`O o~ o~' o°' ti~ ti~ ,yo ,yo ,yo ,yo ,yo do ,yo ,yo ,yo ,yo J Calendar Year Foreclosures in Virginia Beach totaled 1688 and accounted for 19.5% of real estate sales in 2010 -that is almost 2.5 times the historical average. However, that is only about 1.9% of the total mortgages held in the City. Foreclosure affected about one out of every 111 (0.9%) total housing units in the City in 2010. Compare that to a city like Las Vegas where one in nine homes have been foreclosed. Economic Indicators $16 $14 $12 $10 $2 $ O~ O O ~ ~ N N M M ~ '7 ~ ~ ~O ~O I~ n O W O~ 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 C T C T C T C T C ~ C ~ C T C T C ? ,~ c0 ~ fp j r0 ~ r0 j f6 j (6 = c0 = (0 3 r0 3 ~"1 '..' ~"1 ^ n ^ r'1 ^ r'f ~..~ r'1 ~"1 r'1 n r'1 ,..~ ~"f 2 T ^ General Sales Restau There are some signs of improvement. Though the economic recovery has been slower than previous Recessions, there are promising signs at both the national and local level. The City tracks three particular revenues: general sales, restaurant tax and hotel tax, as "economic indicators " of the relative health of the Virginia Beach economy. The graph shows the historical trends in these three revenues from July 1999 (FY 1999-00) through December 2010. As the graph shows, the combined indicators reached a new peak in August 2010. -6- C ITY COUNCIL BUDGET WORKSHOP FY 2011-2012 MANAGEMENT RESOURCE PLAN REVENUE REVIEW Comparison of Average and Median Residential Assessments $400,000 ~ $ 279,700 $350,000 $300,000 $250,000 •••~~~~~~~~~~~~-- $200,000 • • • • • $150,000 • • • • $ 230,900 $100,000 $50,000 $0 04-05 05-06 06-07 07-08 08-09 09-10 10-11 11-12 -Average Residential --Median Residential • Average residential assessment decreased ~ Average commercial assessment increases Real Estate Tax $550 $500 ~ $450 /~ • o Without the rate increase, FY 2012 $40o would be below FY 2007 actual f collections. Even with the rate $350 increase, it's less than FY 2008. $300 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY • At the current rate of 89~, total real revenue is $13.7 million less in FY 2 FY 2011. £.' . .= The FY12 budget proposes increasing the Real Estate Tax Rate from 89¢ to 91 ¢ per $100 of assessed value. -~- C ITY COUNCIL BUDGET WORKSHOP FY 2011-2012 MANAGEMENT RESOURCE PLAN REVENUE REVIEW Personal Property $140 $135 $130 ~ $125 $120 •' • 115 ~ $ $110 Personal Property would grow about 4% without a rate increase or machinery & tools $105 elimination. It rises 7% in the FY 2012 budget. $100 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 201 ,; ~'' • Eliminating Machinery & Tools Tax reduces Personal Property almost $1.7 million. ~. • The 20¢ rate increase generates $5.2 million ' FY ; ~~ 2012. ~ ~'` General Sales $60 $56 _ $52 0 f $48 $44 $40 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY • General Sales: Slight increase since September • 4.7% revenue increase from FY 2011 totaling ~~y -8- $55 $50 C $45 O $40 ~ $35 $30 $25 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 201 • 3.4% revenue decrease from FY 2011 totaling $1.6 million • Utility tax Is paid on electric, gas and water for residential a commercial properties * Represents Utility Tax, Electric and Gas Consumption and VA Tics combirt< $46 $44 $42 $40 C $38 CITY COUNCIL BUDGET WORKSHOP FY 2011-2012 MANAGEMENT RESOURCE PLAN REVENUE REVIEW Business License __ $36 Without exempting new ~ $34 businesses, BPOL would grow 2.6%. The revenue declines $32 2.3% with the exemption. $30 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 20~ • The BPOL tax trend is growing. The red line above shows where revenues would be without the exemption for new businesses,; ;; • The exemption is estimated to be a $2 million annual impact, so 2012 is declining $0.92 million `~ ~ ,~ ,~„~ , ~„' Tota I Uti I ity Taxes* -9- CITYCOUNCIL BUDGET WORKSHOP FY 2011-2012 MANAGEMENT RESOURCE PLAN REVENUE REVIEW Cable Franchise ~$ $6 O $4 f _ - $2 $0 ~~ FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 20 • Revenue growth defies conventional wisdom regardi market saturation and reductions from economic chi for discretionary spending • Total revenue is increasing 7.2% over the FY.~JI City-School Revenue Sharing Formula Revenues FY 2010-11 Budget FY 2011-12 Budget Ci Schools Total Real Estate $ 473,644,801 $ 242,669,528 $ 227,490,472 $ 470,160,00 Personal Property 118,574,744 64,472,138 62,426,620 126,898,75 General Sales 50,596,245 25,790,712 27,167,628 52,958,34 Utility Taxes 47,253,219 25,289,011 20,372,296 45,661,30 Business License 40,771,644 19,403,318 20,439,224 39,842,542 Cable Franchise 6,538,943 3,415,021 3,597,342 7,012,363 $ 737,379,596 $ 381,039,727 $ 361,493,583 $ 742,533,310 • The local contribution to Schools is decreasing 1.1"ro in FY 2012, which is primarily attributable to decreasing , real estate assessments, the elimination of th ax:o~a Machinery & Tools, and the new business a tton ,r; -10- CITYCOUNCIL BUDGET WORKSHOP FY 2011-2012 MANAGEMENT RESOURCE PLAN REVENUE REVIEW $13.0 $12.5 $12.0 H o $11.5 $11.0 $10.5 $10.0 • Cigar incre~ • 7.4% $$ $7 $6 y $5 ~ $4 =_ $3 ~ $2 $1 $0 Amusement Taxes FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY • 6.3% revenue decrease from FY 2011 totaling. $0.36 million * Amusement and Participatory Sports taxes combined , -11- C ITY COUNCIL BUDGET WORKSHOP FY 2011-2012 MANAGEMENT RESOURCE PLAN REVENUE REVIEW Hotel Tax $26 $25 $24 $23 ui C $22 __ $21 _ ~ $20 - --- --- -- $19 $18 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY . ~ • Hotel tax and the flat rate tax show an 11% revenue ", increase from FY 2011 totaling $2.5 million Includes Hotel Tax and Hotel Flat Rate ~ ~~~ ~?~ Restaurant Tax $54 $52 $50 ~ $48 $46 ~ $44 $42 $40 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 • 7.4% revenue increase from FY 2011 totaling $3,, g t r -12- C ITY COUNCIL BUDGET WORKSHOP FY 2011-2012 MANAGEMENT RESOURCE PLAN REVENUE REVIEW Restaurant Tax $54 $52 $50 ~ $48 $46 ~ $44 $42 $40 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 201 ~ 012 • 7.4% revenue increase from FY 2011 totaling $3 fiill~on~-' Dedication of Local Taxes loo°io 90% 80% 7o°io 60% 5o°io 40% 30% 20% 10% 0% ear \Qc e~ ~ f~o~a Leo Jti Qe ^ City General Fund -13- C ITY COUNCIL BUDGET WORKSHOP FY 2011-2012 MANAGEMENT RESOURCE PLAN REVENUE REVIEW $240 $220 $200 y $180 C C $160 ~ $140 $120 $ioo Charges for Services The red line shows charges for services without the garbage fee. The blue line shows charges for services without the storm water rate increase. FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY • Charges for Services are increasing by 7.2% i and include Increases in sewer, storm water, and recreation fees in addition to the prop,e fee Other Local Revenues* $801 $60 C $40 f $20 $0 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 • 12.6% revenue decrease from FY 2011 $6.3 million * Represents Bank Stock, Deeds, Wills, Use of Money and Propel Permits, Fines ~ '~ -14- C ITY COUNCIL BUDGET WORKSHOP FY 2011-2012 MANAGEMENT RESOURCE PLAN REVENUE REVIEW State and Federal Revenue $600 ~ $500 $400 C $300 O $200 _ _ $100 $0 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 201 State - -Federal • State revenue is decreasing $3.8 million (0.8% , ~, • Federal revenue is increasing $25.5 million 5°~~ Fund Balance in Operating Budget Use ; ~~ A11'~~ll~ifl~t Construction & Start Up for Intermediate Care Facility $1,027,299 (General Fund) School Reserve Fund $13,300,000 School Technology Fund $8,125,463 School Textbook Fund $8,490,000 Other School Funds $1,015,433 DEA Forfeiture Fund for Commonwealth's Attorney $200,000 Sheriff's Department & Inmate Funds $1,112,109 TIFs and SSDs $3,693,423 Agriculture Reserve Program $1,595,132 Open Space Fund $1,087,857 Tourism Investment Program (Major Projects) $3,129,087 Water & Sewer Fund for Water Contract True Up (Prior $3,361,943 -15- C ITY COUNCIL BUDGET WORKSHOP FY 2011-2012 MANAGEMENT RESOURCE PLAN REVENUE REVIEW Comparison of Annual Tax Impact for Virginia Beach From FY 2008-09 to FY 2011-12 Real Estate Tax $2,308.66 $2,201.86 $2,110.19 $2,100.28 Personal Property Tax 210.90 155.76 157.75 193.80 Electricity Utility Tax 36.00 36.00 36.00 36.00 Gas Utility Tax 36.00 36.00 36.00 36.00 VA TelecommunicationsTax 70.68 70.68 70.68 70.68 Water Utility Tax 36.00 36.00 36.00 36.00 Restaurant Tax 251.48 251.48 251.48 251.48 Admissions Tax 25.69 25.69 25.69 25.69 Vehicle License Decal 50.00 50.00 50.00 50.00 Storm Water Utility Fee 73.37 80.67 87.97 115.34 Residential Refuse Fee None None None 60.00 Water & Sewer 509.52 529.69 552.00 582.96 Total Tax Impact $3,608.30 $3,473.83 $3,413.76 $3,558.23 Annual Change $0.00 ($134.47) ($60.07) $144.47 Cumulative Change in Total Tax Impact ($134.48) ($194.54) ($50.07) Summary • Total City and School revenues are increasing 2.05% - City Operating Budget revenues are increasing 1.4%, which is less than current inflation rate of 2.1% - School Operating Budget revenues are increasing 2.8% • 49% of the Operating Budget revenues support education • Some rate increases are needed to maintain services, address backlogs or meet mandates, including sewer and storm water increases, garbage fee, and real estate and personal property rate increases - -16- CITYCOUNCIL BUDGET WORKSHOP FY 2011-2012 MANAGEMENT RESOURCE PLAN QUALITYEDUCATIONAND LIFELONG LEARNING 2:23 P.M. Catheryn Whitesell, Director -Management Services, advised some increases are derived in part from the Blue Ribbon Committee's recommendation that the City become more aggressive and raise the charges for services and fees. Mrs. Whitesell will provide information re rate and fee increases, as well as reduction in expenses. The Commissioner of Revenue has been requested to provide an updated estimate of revenue. Quality Education and Lifelong Learning section is comprised of two (2) groups: Vrginia Beach Public School System and the Library Departmeni+ Quality Education and Lifelong Learning Quality Education and Lifelong FY 2010 FY 2010-11 FY 2011-12 Learning Actual Adjusted Proposed Change Budgeted Expenditures $ 808,865,998 $ 843,939,752 $ 866,811,093 2.71% FTEs 10,726.72 10,744.27 10,615.77 -1.20% - Includes Library Department and Virginia Beach City Public Schools - City Council Goals: - Create a financially stable City providing excellent services - Grow the economy - City Council Top Priority: - City-Schools Financial Issues 49.9% of Total The business area has allocated $866.8 Million, a 2.7% increase, which comprises 49.9% of the total Operating Budget. Relative the major Revenue Sources, the City comprises 43% and the State comprises 38% with the Federal Government comprising 12%. Obviously the majority of State and Federal is related to education. Farrell Hanzaker, Schools Chief Financial Officer, contacted Catheryn Whitesell, who advised in the DRAFT Budget Ordinance, a provision, requiring all School funds which have automatically carried over primarily due to the functional nature of those funds (text books, technology, et cetera) in a new process, revert into City owned designated funds. Mr. Hanzaker discussed this with the Mayor, who indicated hope that this would simply be the process where the School Board would identify those requirements and then they would be reappropriated by City Council. Mr. Hanzaker expressed some concern with this process and did not believe the School Board should have heard about this change through the Media. -17- (Continued) Chairman Daniel D. Edwards, Virginia Beach City School Board, distributed responses to City Council's questions re the Schools' Operating Budget, Capital Improvement Program, Issues and Regulations Affecting Delivery of Educational Services, fuel and vehicles and the Revenue Sharing Formula. Quality Education and Lifelong Learning C ITY COUNCIL BUDGET WORKSHOP FY 2011-2012 MANAGEMENT RESOURCE PLAN QUALITYEDUCATIONAND LIFELONG LEARNING Expenditures ~ihraries !~o Revenue Sources 12% ^ Fees & Charges for Services ^ State ^ Federal ^ City ^ Fund Balance/Reversion School Revenue By Source $900,000,000 -, , $800,000,000 - I ^ City Contribution $700,000,000 ~, $3 5,762,238' _~ $3f1,493,581 r y $600,000,000 ~ ^ Fees $500,000,000 - ', a $400,000,000 - .898,6 $ $1 7,991,753. ^ Reserves/Fund $300,000,000 ~ Balance $200,000,000 ~ $>23,455,458 ~:-524,824,905 Federal $ioo,aoo,ooo ~! $0 ^ State FY 2010-2011 FY 2011-12 Adopted Proposed Budget $825,197,287 $851,211,331 Schools 98% -18- CITY COUNCIL BUDGET WORKSHOP FY 2011-2012 MANAGEMENT RESOURCE PLAN QUALITYEDUCATIONAND LIFELONG LEARNING (Continued) Chairman Edwards advised this Budget is based on the Revenue Sharing Formula. The Schools' Budget was not submitted in excess; therefore, the following was NOT INCL UDED in the Budget. Full-day Kindergarten Virginia %3 Initiative Funding Expanded Pre-School Program Bus/Vehicle Replacement Expansion of AVID Program Tuition Reimbursement for Staff Band Instrument Replacement The process will continue next year, when the (LCI) Local Composite Index is rebenchmarked again. It is likely to increase again. It has gone from 34 to 37 to 40 in the last six (6) years and is very likely to continue increasing. The General Assembly did act positively in their Reconciliation regarding education. Although, purportedly the LCI (Local Composite Index) was restored, there were some takeouts and the net effect of that, best guess right now, is somewhere in the mid-$4-Million range. That is a plus up from where we thought we were prior to Reconciliation. If that comes to pass, the likely recommendation from the administration, although until they see a firm number they will not have a definite proposed revision to the estimate of needs, they will likely reduce the draw down. At the last meeting, Chairman Edwards explained how we were basically at minus 209 from this current year to next year which would hopefully reduce that at about `half, so we would be just over 100 in positions out next year that are in this year. Chairman Edwards restated what Vice Chairman Brunke had talked about at the last meeting related to the arithmetic on positions. Our draw down was 324, plussing back using some of the Federal Jobs money, and then an estimated plus-up of about 30 positions based on increased enrollment, which will drive additional State funding. In addition to those, included in the Estimate of Needs next year, is a 3% reduction of all non personnel items, with the exception of utilities and fuel. The Schools were planning on a $2-Million reduction on the fuel and utilities lines. The other caveat is very important to note. This is what the Superintendent has presented to the Board. The Board only had the Superintendent's presentation for two weeks and will not finalize any action on it until the middle of this month. It is quite likely to change, not only from the State numbers but from Board positions on it, as well. BREAK: 3:22 P.M. - 3:30 P.M. -19- C ITY CO UNCIL B UDGET WORKSHOP FY2011-2012 MANAGEMENT RESOURCE PLAN QUALITYEDUCATIONAND LIFELONG LEARNING LIBRARIES 3:30 P.M. Marcy Sims, Director -Libraries, advised the two (2) slides reflect all the Program Units of the Library Department including the Meyera E. Oberndorf Central Library, eight (8) area libraries, the Book Mobile, Special Services for the Blind and physically handicapped and the Wahab Public Law Library. In this current year's budget, forty-one (41) full time and part time positions were lost and the library hours were reduced in the eight (8) area libraries. The differences in the FTE (Full Time Employee) count between FY 2010, FY 2011 and FY 2012 reflect the personnel transfers made to "even out" the staffing at each location and "shore up" the Central Library, in which the hours remain unchanged. There is the addition of one FTE for the TCC -City Joint Use Library, which represents a partial salary to begin in March 2012 to oversee the commissioning, the hiring of City staff and training for the community services that will be offered from the Joint Use Library. The second slide represents the Support Divisions for the Library and the City including the Virginia Beach GrowSmart off ce (focusing on children, prenatal to five year olds), Records Management oversees the compliance with the Virginia Public Records Act for not only all City departments, but for the Courts, Schools. Library Collections, including cataloging and technology services. The Library has a $15.7 Million Operating Budget, primarily funded by the General Fund, with approximately S% coming from revenues Vines and fees and other sources along with State aid). Another 2% is derived from Court filing fees, which supports the Wahab Public law Library. Personnel comprise 77% of the Library's Buclget, with another 11 % for books, audio, electronic resources, newspapers and other library materials. Included in this Budget is the partial salary for the Public Library Manager at the Joint Use Library. Groundbreaking is expected in the very near future, completion in September 2012, and opening in December 2012. Public Library Department Central Library 2,409,915 46.00 2,670,153 52.50 iunity Libraries de, Kempsville, ss Anne and ifront & YFS) boyhood Libraries Neck, Windsor s, Pungo- vaterand South Font Youth/BMB) b Public Law Joint Use Library 4,572,697 90.00 4,344,984 84.50 260,238 (227,713) 2,118,044 40.50 2,251,447 41.50 $133,403 322,800 2.50 277,800 2.50 (55,000) 0 0 29,446 1.00 29,446 -20- C ITY COUNCIL BUDGET WORKSHOP FY2011-2012 MANAGEMENT RESOURCE PLAN QUALITYEDUCATIONAND LIFELONG LEARNING LIBRARIES Administration, 1,867,660 GrowSmart and Records Management Library Collections (incl. 4,409,701 gift fund), Cataloging and Technology Services Total 15,710,817 (Continued) 21.50 1,856,839 21.50 ($10,821) 27.00 $4,226,345 25.00 (183,356) 227.50 15,657,014 228.50 (53,803) FY 2011-12 Prop 4.9 93.3% .. - ~ OS% 1.75% ^ General Fund ^ GF Revenue ®Law Library ^ Library Gift Funds ised Budget 11%~ ~_{ 2% ~: 4,,. 10% 77% ^Personnel ^Operations s ® Books and Materials ^ Fund 130 Law Library The Joint Use Library will be "state of the art" with 120, 000 square feet on two (2) levels, larger than the Central Library (95, 000 square feet) Public Library Department TCC-City Joint Use Library - Break ground Spring 2011, open December 2012 - 120,000 square feet on two levels - Over 400 public access computers - Academic and community services including early literacy service center ~- ~.~, ,_ -=-~~-r ~~~ Public Library Department -21- CITYCOUNCIL BUDGET WORKSHOP FY 2011-2012 MANAGEMENT RESOURCE PLAN QUALITYEDUCATIONAND LIFELONG LEARNING LIBRARIES (Continued) Public Library Department Automated Materials Handling - CIP Efficiency Investment - Three year return on investment Public Library Department Trends & Highlights - Encourage Civic Engagement • All Libraries are now voter registration sites • Web resource support for Envision Transportation and Mayor's Envision VB 2040 • City-Wide Big Read Program: funded by NEA - Help Residents Find Jobs • Every Library is now a SNAP Center, sponsored by Opp Inc - Connect Citizens to the Online World • Webpage and electronic resources create a virtual branch library with 24/7 access • Wireless and Internet access at all location • Downloadable e-books, audiobooks and music • Initiated mobile technology access to the on-line public catalog and multiple library resources -22- CITY COUNCIL BUDGET WORKSHOP FY 2011-2012 MANAGEMENT RESOURCE PLAN QUALITYEDUCATIONAND LIFELONG LEARNING LIBRARIES (Continued) Public Library Department Trends & Highlights - Library Usage • Circulation continues to grow, even with reduced hours • Huge increase in use of downloadable E-books - Create Young Readers • Initiated Early Literacy Service Centers @ every library • Repurposed Bookmobile as an Early Literacy Service Center • VB GrowSmart: administers Smart Beginnings Grant: $500,000 - Enhance Access to Local and Family History Resources • Digitization of Collections: Edgar Brown, Bob Gilson, Oceana High School, etc. - 23 - CITY COUNCIL BUDGET WORKSHOP FY 2011-2012 MANAGEMENT RESOURCE PLAN OVERVIEW CONSTITUTIONAL OFFICERS 3:41 P.M. Catheryn Whitesell, Director -Management Services, introduced the Overview re Constitutional Officers. The Clerk of Circuit Court, Tina Sinnen, was unable to be in attendance and will present her information during the City Council Session, Tuesday, April 12, 2011. The Constitutional Officers comprise $53.9-Million of the City's FY 2011-2012 MANAGEMENT RESOURCE PLAN and encompass approximately seven hundred eighty-nine (789) positions among the five offices (31 % of total Operating Budget) Constitutional Officers FY 2010 FY 2010-1i FY 2011-12 % Constitutional Officers Actual Adjusted Proposed Change Budgeted Expenditures $ 53,533,651 $ 55,745,473 $ 53,894,650 -3.32% FTEs 800.06 804.77 789.62 -1.88% • Category includes the City Treasurer, the Commissioner of the Revenue, the Clerk of the Circuit Court, the Commonwealth's Attorney and the Sheriff • City Council Goals: - Create a financially sustainable City providing excellent services • Reduced State support for Constitutional Officers for the cost of the Virginia Risk Management liability insurance and surety bond premiums totaling $209,372 3.1% of Total Constitutional Officers Constitutional Officers Expenditures 6.8% Revenue Sources ~ woi 43.7% ^ Commissioner of the Revenue ^ Clerk of the Circuit Court^ Fees & Charges for Services ^ State ^ Commonwealth's Attorney ^ Sheriff ^ Federal ®Other Local (Transfers) ^ City Treasurer ~ City ^ Fund Balance -24- CITY COUNCIL BUDGET WORKSHOP FY 2011-2012 MANAGEMENT RESOURCE PLAN CONSTITUTIONAL OFFICERS (Continued) The General Assembly reduced $1.7-Million statewide funding for the cost of the Vrginia Risk Management Liability Insurance and Surety Bond premiums paid by the Compensation Board. These payments are made on behalf of Constitutional Officers and Regional Jails. The Compensation Board currently pays this premium and recovers SO% of the cost from localities; however, beginning in FY 2011-12 the State Compensation Board will begin recovering 100% of this cost from localities. This comprises $209,000 of increased cost for the City. Revenue to support the Constitutional Offices is derived (43.7%) from the State, (42.8%) from the City and (9.5%) through fees and charges collected in the offices. -25- CITY COUNCIL BUDGET WORSSHOP FY 2011-2012 MANAGEMENT RESOURCE PLAN CONSTITUTIONAL OFFICERS COMMISSIONER OF REVENUE - PHILLIP KELLAM 3:42 P.M. Phillip Kellam, Commissioner of Revenue, delineated the effects the proposed City Operating Budget will have on the office of the Commissioner of the Revenue. Their office funding is from both the State and the City. Mr. Kellam advised the City Council if they could provide $1 S0, 000 to reinstate the 3.5 positions deleted from his office last year, he could find approximately $8- Million in revenue during this upcoming Fiscal Year 2012. Commissioner of the Revenue 22.2, 1 . 77.896 ^ City ^ State ^ City ^ State Commissioner of the Revenue Uses City 2,858,776 57.93 2,841,817 57.93 -16,959 State 800,973 35 811,173 35 10,200 Total 3,659,749 57.93 3,652,990 57.93 -6,759 FY 2010-11 Adjusted Budget FY 2011-12 Proposed Budget ^ Operations ^ Personnel -26- CITY COUNCIL BUDGET WORKSHOP FY 2011-2012 MANAGEMENT RESOURCE PLAN CONSTITUTIONAL OFFICERS COMMISSIONER OF REVENUE - PHILLIP KELLAM (Continued) Commissioner of the Revenue - Losing Trends Number of COR Employees - Winning Solutions r Restore the 3.5 FTE cut in FY it > Consolidate Business Revenue office area 'DMV Employees added to COR budget August Book in Millions $ Commissioner of the Revenue Trends & Highlights for FY 12 Business License Assessments up 2.59~0* v Personal Property Assessments up 4.5% > Trustee Tax Assessments up 2.5 Y Other assessments steady or trending up: Bank Franchise, Daily Rental, Public Service, State Income v Must update Business Property Assessment Method - Re: letter of 3/3/11 May implement Machinery & Tools Tax rate reduction** - May implement "new business" incentive qualifications*** Will continue to shift staff and pay overtime if City funding is not addressed in FY 12 (Estimated revenue lost to FY it is $Sm-$lOm; Estimated revenue lost to FY 12?) * Under current law ** No staff impact *** Additional staff needed os/o6 06/07 o7/OS as/o9 o9/io 10/11 05/06 06/07 07/08 OB/09 09/10 10/11 -27- CITY COUNCIL BUDGET WORKSHOP FY 2011-2012 MANAGEMENT RESOURCE PLAN CONSTITUTIONAL OFFICERS COMMISSIONER OF REVENUE - PHILLIP KELLAM (Continued) Mr. Kellam advised his office annually routinely audits over 2,500 taxpayers. These audits are conducted in accordance with the Code of Virginia and the Code of the City of Virginia Beach. Mr. Kellam distributed correspondence re a recently completed audit involving the taxable status and fair market value of the business personal property of a large Virginia Beach taxpayer. Within certain sectors, the fair market values of business property are declining more rapidly than our current method for assessment considers. This method reduces the taxable basis to forty percent of the original cost of the property. That amount is multiplied by the rate established by City Council resulting in the tax due. The current method was initially employed in 1993 by Commissioner Vaughan in response to a similar circumstance. In 1998, Mr. Kellam added a simple process for all taxpayers to appeal assessments to assure the fair and equitable treatment for all sectors of this class of property. While the current audit and appeal processes can determine the fair market value of the property in this class, the systemic method of assessment should be revised to better reflect the 2011 market. Mr. Kellam requested the opportunity to address this matter with the City Council so the pending adjustments in his methods of assessing this class of property are made with their understanding and concurrence. Changes will affect workloads and budget considerations. His thirty-five (35) State employees have been constant since 1998 and have not been cud The City supplements this funding and fortifies it. -28- CITY COUNCIL BUDGET WORKSHOP FY 2011-2012 MANAGEMENT RESOURCE PLAN CONSTITUTIONAL OFFICERS COMMONWEALTH'S ATTORNEY - HARVEY BRYANT 4:10 P.M. Harvey Bryant, Commonwealth's Attorney, advised he represents the largest Commonwealth's Attorney's office in Virginia. Mr. Bryant advised the chart depicting the Commonwealth Attorney's office reflects a reduction of $262,412 re FY2011-2012. In terms of FTE's at 86.4 now, there were 93 FTE's just two (2) years ago and this number has illustrated the Office of the Commonwealth's Attorney being a cooperative partner complying with personnel cuts throughout the years. 7,620,530 86.4 7,345,325 85.25 7,420,530 86.4 7,145,325 85.25 200.000 2eo,sas FY 2011-12 Proposed Budg 2.72% 3.55% :~ ~ ~ I,~ Revenues Expenditures Office of the Commonwealth's Attorney FY 11/12 Service Changes Reductions Summer Intern Program ($38,779) -this program provided 6 third-year law interns for 10 weeks every summer to handle misdemeanor cases, research on large cases, and the writing of briefs allowing our full-time attorneys more time in major case preparation. :~ Legal Investigator ($89,110) -this will hinder our ability to fully prepare prosecutors with additional research and investigation when needed. Investigators participate in case analysis, interview witnesses, serve subpoenas and run criminal record histories as needed. Enhancements Media and Communications Coordinator ($50,639) -this will provide media relation services on behalf of the Commonwealth's Attorney regarding public safety issues, community partnerships and press releases concerning the status of pending and completed cases. The MCC will handle the frequent barrage of media inquiries to this office. iz Office of the Commonwealth's Attorney -29- CITY COUNCIL BUDGET WORKSHOP FY 2011-2012 MANAGEMENT RESOURCE PLAN CONSTITUTIONAL OFFICERS COMMONWEALTH'S ATTORNEY- HARVEYBRYANT (Continued) Office of the Commonwealth's Attorney FY 2011-12 Trends & Highlights - Funded three contracted manpower positions (receptionist and two clerks) with money saved from position vacancies to meet service delivery demands Began transfer of restitution program to City Treasurer's Office - The office prosecuted: • Over 550 defendants charged with various felony drug offenses • Over 600 defendants charged with various violent crimes • Over 1,400 defendants charged with various felony property crimes -Although not statutorily required, the office prosecuted: • Over 2,100 domestic violence cases • Over 1,100 misdemeanor DUIs • All criminal City misdemeanor appeals The Commonwealth's Attorney requested a Media and Communications Coordinator ($50,639), which the Management Leadership Team (MLT) also recommended. The Commonwealth's Attorney is one of the most high profile offices in the City and is just one of three (3) entities in the City that has full time Media representatives (Virginian-Pilot) assigned to their office. The other entities are the City Manager and Police Department. Mr. Bryant believes a lack of Probation Officers was "slowing" the system down; as a result cases have to be continued. This is a State problem. -30- CITY COUNCIL BUDGET WORKSHOP FY 2011-2012 MANAGEMENT RESOURCE PLAN CONSTITUTIONAL OFFICERS TREASURER - JOHNATKINSON 4:20 P.M. John Atkinson, City Treasurer, appealed to the Mayor and City Council to restore the City Manager's cuts, that if left unrestored will eliminate the Virginia Beach Borough Treasurer's Office. In this office, the Treasurer administers the City's parking tickets (collection and system), residential parking passes, provides counter services to citizens who reside on this side of the Lynnhaven Bridge, down both sides of Great Neck Road all the way to the North End and down past Seatack. This is a significant area, if this office is closed, the Treasurer will lose the ability to provide services to those residents. Service fees generally make the Treasurer's office less expensive for the taxpayer. City Treasurer FY 2011-12 Funding FY 2011-12 Proposed Budget ^ General Fund ^ State ^ User Fees City Treasurer Funding Se,ooo,ooo ~ Ss,ooo,aoo Sa,oooooo $3.000.000 $2,000.000 $1.000,000 S- Note: Average annual funding over 10-year period (FY2000 to FY 2009): $4,133,329 User Fees/ General Fund $709,685 State City Treasurer $4,825,429 72.83 $4,734,708 69.83 -$90,721 Total $4,825,429 72.83 $4,734,708 69.83 -$90,721 2009 Actual 2010 Actual 2011 YTD 2012 Budget ^ State ^ User Fees ^ General Fund -31- CITYCOUNCIL BUDGET WORKSHOP FY 20II-2012 MANAGEMENT RESOURCE PLAN CONSTITUTIONAL OFFICERS TREASURER - JOHNATKINSON (Continued) City Treasurer Funding 100% 90% 80% 70% 60% 50% 40% 30% 20% lOq 0% Note: Average annual percentage funding over 10-year period (Fy2000 to FY2009): 85.4% User Fees/General Fund City and 14.6% State. City Treasurer The funding level resulted in closing of the Beach Satellite Office and the elimination of three FTEs. This location also houses the Parking Ticket Division, which provided a convenient location for payment of parking tickets and is currently the only place where residential parking permits are issued to oceanfront residents and businesses. - State funding has been declining in recent years. 2009 Actual 2010 Actual 2011 YTD 2012 Budget ^ State ^ User Fees ^ General Fund -32- CITY COUNCIL BUDGET WORKSHOP FY 2011-2012 MANAGEMENT RESOURCE PLAN CONSTITUTIONAL OFFICERS TREASURER - JOHNATKINSON (Continued) City Treasurer FY 2011-12 Trends & Highlights - The program, which imposes administrative fees on delinquent accounts has exceeded projected revenues. - The City Treasurer is working with the State Department of Taxation on a pilot program involving the collection of delinquent State funds, with the City's receiving a percentage of collections. - There is also a joint effort between the City Treasurer and the Code Enforcement Unit of the Housing and Neighborhood Preservation Department, in which the Treasurer will collect delinquent payments from owner's who owe for City work done on their properties to correct code violations. Catheryn Whitesell, Director -Management Services, advised $174, 000 is required to restore the three (3) positions. -33- CITYCOUNCIL BUDGET WORKSHOP FY 2011-2012 MANAGEMENT RESOURCE PLAN CONSTITUTIONAL OFFICERS SHERIFF and CORRECTIONS - KENNETH D. STOLLE 4:25 P.M. Sheriff Kenneth D. Stolle invited all to tour the Sheriff s Office. There have been many dramatic improvements. 2,042,493 23.43 2,093,200 24.43 50,707 Court Support 3,061,333 61.84 2,980,561 60.84 (80,772) Correctional 26,625,426 362.60 25,330,686 352.60 (1,294,74~~'. Operations Central Process 1,948,410 37.00 1,936,419 37.00 (11,991) DARE 704,271 11.00 706,900 11.00 2,629 Work Force 894,671 13.00 864,865 12.00 (29,806) Law Enforcement 140,858 1 142,358 1 1,500 Training Reserve for 300,000 - 0 - (300,000) Contingencies Virginia Beach Sheriff's Office rate 1,408,422 20.74 rvices Fund tal 37,125,884 530.61 1,364,612 20.74 35,419,601 519.61 (43,810) (1,706,283) ^ Fees ^ State 34 ^ Federal ^ Fund Balance ^ City General Fund 9.7% ^ Transfers ^ Personnel ^ Operations ^ Transfers Revenues Expenditures These charts depict there is a reduction in almost every area and the total budget for the proposed year is $35,419,601. Virginia Beach Sheriff's Office 0.8% 10.5% -34- CITYCOUNCIL BUDGET WORKSHOP FY 2011-2012 MANAGEMENT RESOURCE PLAN CONSTITUTIONAL OFFICERS SHERIFF and CORRECTIONS - KENNETH D. STOLLE (Continued) Sheriff Stolle advised the Department a year ago was averaging 300 major rule violations a month with 1400 inmates A secured housing unit was created and the method of disciplinary hearings has changed. These major rule violations have been reduced to approximately 100 per month. Two hundred fifty (250) inmates are mentally ilk A Commission has been created to review this situation. This is a problem in which the City and State must be involved. Sheriff Stolle advised there are more mentally ill inmates in the City's facility than the entire State of Virginia. Approximately $2-MILLION additional revenue was targeted Virginia Beach Sheriff's Office A large part of the Sheriff's Office budget reductions are a result of staffing cuts from the Compensation Board. While the staffing reduction occurred during FY 2010-11, the Sheriff's Office Special Revenue Fund Reserve was utilized to maintain the unfunded FTE's without any layoffs. The FY 2011-12 reflects the staffing and revenue reductions. Y The Sheriff's OfFce is looking to generate additional revenue and further reduce expenditures in FY 2011-12 with the intent of providing salary increases to Sheriff's Office employees. Virginia Beach Sheriff's Office FY 2011-12 Trends & Highlights - Estimated Reduction in Inmate Medical Contract $225,000.00 Estimated Reduction in Inmate Food Contract $367,920.00 - Estimated Out of Compliance Inmates 200 - Estimated Out of Compliance Revenue $876,000 - Work Force providing Graffiti Abatement service to the City ,projected saving for Housing & Neighborhood Preservation $35,000 -35- CITY COUNCIL BUDGET WORKSHOP FY 2011-2012 MANAGEMENT RESOURCE PLAN ECONOMIC VITALITY 4:45 P.M. Catheryn Whitesell, Director -Management Services, advised: Economic Vitality FY 2010 FY 2010-11 FY 2011-12 % Economic Vitality Actual Adjusted Proposed Change Budgeted Expenditures $ 82,115,572 $ 90,606,933 $ 90,147,897 -0.51% FTEs 229.91 222.52 221.52 -0.45% - Includes Agriculture, Convention & Visitor Bureau, Economic Development, and Housing & Neighborhood Preservation Departments as 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 Y 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 5.2% of Total Operating Economic Vitality is comprised of the following departments: Agriculture, Convention and Visitor Bureau, Economic Development, Housing and Neighborhood Preservation, Strategic Growth Area Office: Economic Vitality Expenditures Revenues 5% ^ Agriculture ^ Convention and Visitor Bureau ^ Economic Development ^ Housing and Neighborhood Preservation ^ Strategic Growth Area ^ Dedicated Funding ^ OtherLocal(Transfers) ^ Fees & Charges for Services ^ State and Federal ^ City ® Fund Balance -36- CITY COUNCIL BUDGET WOR%SHOP FY 2011-2012 MANAGEMENT RESOURCE PLAN ECONOMIC VITALITY (Continued) Convention and Visitors Bureau makes up the largest percentage of the business area at 49%. Economic Vitality Funds - Major Revenues: Dedicated Revenues - Agriculture Reserve Program (ARP) - Tourism Investment Program (TIP) - Tourism Advertising Program (TAP) - Central Business District -South TIF - Town Center Special Service District Fees and Charges - Facility Rental at Convention Center - Farmers Market - Special Events at the Oceanfront - Parking lot and parking meter fees State and Federal - Housing Programs ^GeneralFund ^TIP ^TAP ^ Parking Enterprise ^TOwnCenterTlF ^TownCenter55D ARP ~ Housing Programs -37- CITY COUNCIL BUDGET WORKSHOP FY 2011-2012 MANAGEMENT RESOURCE PLAN ECONOMIC VITALITY AGRICULTURE 4:47 P.M. David Trimmer, Director -Agriculture, advised Agriculture is composed of twelve (12) FTE's (Full time Employees): Director's Office - 3; Cooperative Extension - 6; Farmers Market - 2 and ARP (Agriculture Reserve Program -1. Over the last three (3) years, the FTE's have been reduced by one each year resulting in a 20% reduction. Agriculture Total - 9,389,794 12.0 6,820,251 12.0 (2,569,543) FY 2011-12 Proposed Budget 10.5% 11.290 3.1%0 38.1% ' 88.890 ~- 48.3% ^ Personnel $715,397 ^ Operations $208,720 ^ General Fund ^ ARP Special Revenue Fund ^ Debt Service $3,296,134 ^ Transfers-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) Director's Office 311,831 3.00 311,831 3.00 0 Cooperative Extension 262,495 6.00 262,495 6.00 0 Farmers Market 189,430 2.00 191,469 2.00 2,039 ARP 8,626,038 1.00 6,054,456 1.00 (2,571,582) -38- CITYCOUNCIL BUDGET WORKSHOP FY 2011-2012 MANAGEMENT RESOURCE PLAN ECONOMIC VITALITY AGRICULTURE (Continued) 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). -39- CITYCOUNCIL BUDGET WORKSHOP FY 2011-2012 MANAGEMENT RESOURCE PLAN ECONOMIC VITALITY CONVENTION and VISITORS BUREAU 4:57 P.M. James Ricketts, Director -Convention and Visitors Bureau, advised the City's commitment is gradually being reduced as negotiations were successful with the Rock `NRoll `Half Marathon over the last few years. >ctor's Office 990,489 rism rketing and Sales 432,657 irts Marketing 455,582 rvention rketing and Sales 941,555 Convention Center 5,870,136 10 095 1 095 10 104 606 , , , 6 431,865 6 (792) 3 314,823 3 (140,759) x 12 928,345 12 (13,210) 72.13 5,818,769 72.13 (51,367) CVB ral Fund 8,690,419 103.13 8,588,897 103.13 (101,522) Convention and Visitors Bureau rism Advertising 7,915,737 0 8,667,661 0 751,924 Transfers/Reserves 59,943 56,838 (3,105) Visitor Centers 1,170,482 10.39 1,155,721 10.39 (14,761) Total TAP FUND 9,146,162 10.39 9,880,220 10.39 734,058 TGIF-Locals Campaign 100,000 0 100,000 0 0 Total CVB Budget 17,836,581 113.52 18,469,117 113.52 632,536 FV 2011-12 Proposed Budget 1% ^ General Fund ^TAP Fund ^ Personnel ^ TIP Fund ^ Operations Tou TAP Convention and Visitors Bureau -40- CITY COUNCIL BUDGET WOR&SHOP FY2011-2012 MANAGEMENT RESOURCE PLAN ECONOMIC VITALITY CONVENTION and VISITORSBUREAU (Continued) 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 • Laskin Road Gateway • 19th Street/Central Beach 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 Mr. Ricketts advised one of the initiatives is the Coastal Virginia Tourism Alliance, which consists of the nine (9) Convention and Visitors Bureaus and the two (2) Airports in the region. The Chesapeake Bay Bridge Tunnel is now in the Alliance, as is the Tourism Commission re Chincoteague and Wallops Island. The Canadian Package Program is also available as a "point of interest" entitled "Surf and City': The tourists stay two (2) nights, 3 days in Washington, D.C. and then come to Virginia Beach and stay a few nights (combined metropolitan area and beach vacations). -41- CITY COUNCIL BUDGET WORKSHOP FY 2011-2012 MANAGEMENT RESOURCE PLAN ECONOMIC VITALITY ECONOMIC DEVELOPMENT 5:10 P.M. Warren Harris, Director -Economic Development, advised the proposed FY 2011-2012 MANAGEMENT RESOURCE PLAN re Economic Development. r-, VIRGINIA BEACH ECONOMIC D E V E L O P M E N T Director's Office $2,121,416 15 $2,044,395 15 ($77,021) Town Center SSD $1,984,140 0 $1,999,140 0 $15,000 Town CenterTlF $5,734,036 0 $5,716,817 0 ($17,219) Capital Projects N/A 1 $72,297 1 $72,297 (APZ FTE) Total $9,839,592 16 $9,832,649 16 ($6,943) i% I 5% 1% 2U`Yo 2], ®General Fund ~ ~ Town Center TIF 59 ~0 ~iy!', ^ Town Center SSD ^Personnel ^Operations ~- ^Marketing Travel ^Debt Service TlF 14 ^Special Services District ^Capital Prjojects The Capital Projects (APZ Full Time Employee) has been added to reflect specifically Economic Development's FTE position associated with BRAC (Base Realignment and Closure) who works in support of the APZ 1 program. For every dollar invested in Economic Development, nineteen cents ($.19) is received (19% return on investment). r-, VIRGINIA BEAC ECONOMIC DEVELOPMENT - 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 Y 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 /B~ookings Instttute) S~ Virginia Beach Second Best Plate to find a Job in 2010 lFOrbesl BUt .................................................... -42- CITY COUNCIL BUDGET WORKSHOP FY 2011-2012 MANAGEMENT RESOURCE PLAN ECONOMIC VITALITY ECONOMIC DEVELOPMENT (Continued) r. VIRGINIA BEACH ECONOMIC DEVELOPMENT 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. i' 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. - 43 - CITYCOUNCIL BUDGET WORKSHOP FY2011-2012 MANAGEMENT RESOURCE PLAN ECONOMIC VITALITY HOUSING and NEIGHBORHOOD PRESERVATION 5:30 P.M. Andrew Friedman, Director -Housing and Neighborhood Preservation, delineated their FY 2011-2012 MANAGEMENT RESOURCE PLAN. However, 91 % of these amounts are not known as the Federal Government has not passed their Operating Budget. Housing & Neighborhood Preservation Administration & Neighborhood Preservation Code Enforcement Development and Rehab of Affordable Housing Home Ownership and Owner Rehab Affordable Rental Housing & Homeless Programs Total 1,129, 240 11 1,195,422 11 66,182 2,334,962 30 2,280,565 29 (54,397) 1,217,649 6 1,229,178 5 11,529 802,561 1 747,044 1 (55,517) 18,683,606 19 19,590,539 20 906,933 24,168,018 67 25,042,748 66 874,730 Housing & Neighborhood Preservation Uses Direct 76.»0 -44- Basically, 77% of the funds are utilized as Direct Services. Many of those funds go directly to landlords, property owners in the community, contractors of home repair and non profit who provide direct services to our citizens. Staff is being cut and services added. CITY COUNCIL BUDGET WORKSHOP FY20I1-2012 MANAGEMENT RESOURCE PLAN ECONOMIC VITALITY HOUSING and NEIGHBORHOOD PRESERVATION (Continued) Less than 90% of the budget is contained in General Fund Revenues, the majority of which goes directly to the Code Enforcement Division. The majority offunds are for Housing Vouchers. Housing & Neighborhood Preservation )D section 8 Funds $17,133,207 68.4% therFederal Funds 3G/HOME/ESG / HOPWA) 5,672,141 22.8% 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 zoi~. - 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. Revenues General Fund $2,171,600 8.7% -45- CITYCOUNCIL BUDGET WORKSHOP FY 2011-2012 MANAGEMENT RESOURCE PLAN ECONOMIC VITALITY HOUSING and NEIGHBORHOOD PRESERVATION (Continued) Housing and Neighborhood Preservation FY 2011-12 Trends & Highlights - CDBG and HOME Programs (approximately 23% of our budget): Funding for Fiscal Year 2011-2012 is not yet known due to lack of an approved Federal budget. - Housing Choice Voucher program (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. -46- CITY COUNCIL BUDGET WORKSHOP FY 2011-2012 MANAGEMENT RESOURCE PLAN ECONOMIC VITALITY STRATEGIC GROWTHAREA OFFICE 5:35 P.M. Barry Frankenfied, Manager - Strategic Growth Area delineated their FY 2011-2012 MANAGEMENT RESOURCE PLAN: Strategu Growth ~.x Strategic Growth ~.rea Office -47- CITY COUNCIL BUDGET WORKSHOP FY 20II-2012 MANAGEMENT RESOURCE PLAN ECONOMIC VITALITY STRATEGIC GROWTHAREA OFFICE (Continued) 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 $S00 permit fee. 'r For late special event permits, dependent upon the delinquency period, the late fee ranges between $10/day and $30/day. - TIP (Tourism Investment ProgramjSpecial 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. Strategic Cjrowt~ ~I.rea 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 >Town Center: 4 garages and on-street parking operations zE -48- ADJOURNMENT Mayor Sessoms DECLARED the City Council Workshop re CITY COUNCIL BUDGET WORKSHOP FY 2011-2012 MANAGEMENT RESOURCE PLANADJOURNED at S: SO P.M. Beverly O. Hooks, CMC Chief Deputy City Clerk Ruth Hodges Fraser, MMC City Clerk - 48 - ADJOURNMENT Mayor Sessoms DECLARED the City Council Workshop re CITY COUNCIL BUDGE: FY20I1-2012 MANAGEMENT RESOURCE PLANADJOURNED at S: SO P.M. Beverly .Hooks, CMC Chief Deputy City Clerk ------------------ R th Hodges Fraser; MMC City Clerk