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Home My WebLink AboutMAY 6, 2014 WORKSHOP MINUTESCITY OF VIRGINIA BEACH "COMMUNITY FOR A LIFETIME" CITY COUNCIL MAYOR W/LL/AM D. SESSOMS, JR., At La•ge V/CE MAYOR LOU/S R. JONES, Bnvside - District 4 ROBERT M. DYER, Centerville - District 1 BARBARA M. HENLEY, Princess Anne - District 7 SNANNON DS KANE, Rose Hall - Disn•ict 3 BRAD MART/N, P.E., At Lnrge JOHN D. MOSS, AI Lm•ge AMEL/A ROSS-HAMMOND, Kentpsville - District 2 JOHN E. UHR/N, Beadi - Disn•ict 6 ROSEMARY WILSON, At Laige JAMES L. WOOD. Lynnhnven -District 5 CITY COUNCIL APPOINTEES C/TY MANAGER - JAMES K. SPORE C/TYATTORNEY- MARKD. STILES CITY ASSESSOR - JERALD D. BANAGAN CITYAUDITOR- I.YNDONS REMIAS CITY CLERK - RUTH HODGES FRASER, MMC CITY COUNCIL WORKSHOP AGENDA 6 MAY 2014 1. RECONCILIATION - Conference Room - A. FY 2014-15 RESOURCE MANAGEMENT PLAN (Budget) CITYHALL BUILDING 2401 COURTHOUSEDRIVE VIRGINIA BEACH, VIRGINIA 23456-8005 PHONE: (757) 385-4303 FAX (757) 385-5669 E-MAIL: crycncl@vbgov.com 3:00 PM VIRGINIA BEACH CITY COUNCIL Virginia Beach, Virginia May 6, 2014 Mayor William D. Sessoms, Jr., called to order the CITY COUNCIL'S WORKSHOP in the Ciry Council Conference Room, Tuesday, May 6, 2014, at 3: 00 P.M. Council Members Present: Robert M. Dyer, Barbara M. Flenley, Vice Mayor Louis R. Jones, Shannon DS Kane, Brad Martin, John D. Moss, Amelia N. Ross- Hammond, Mayor William D. Sessoms, Jr., John E. Uhrin, James L. Wood and Xosemary Wilson Council Members Absent: None May 6, 2014 RECONCILIATION 3: 00 P.M. Mayor Sessoms expressed his appreciation to those in attendance. As in past years, Mayor Sessoms and Vice Mayor Jones submitted their joint letter re: "Reconciliation of the FY2014-15 Operating and Capital Budgets ", which is here made a part of the record. Mayor Sessoms expressed his appreciation to the Department Directors and Management Ser-vices for all of their hard work in presenting the proposed Budget this year. Councilman Dyer acknowledged the Budget continues to be a challenge and expressed appreciation to the City Council for the support of the additional Fire Fighters for the Centerville District. Councilman Moss expressed his displeasure with the proposed tax increase. Household income in the Ciry fell 4.6%, on average and he feels the City could have met the Budget that did not raise business property taxes. Council Lady Ross-Hammond expressed her appreciation for the additional funding for Arts and Humanities. Councilman Wood requested specific information for Nimmo VII. Council Lady Henley advised the preliminary design has to be completed, along with the permitting, before construction can begin. Councilman Wood requested specific information on Sandbridge Road as a number of residents spoke at the recent Public Hearings. The City Manager advised the funds allocated for the Budget are for immediate improvements, such as better lighting, surface repair and stripping throughout the entire stretch of this road. Council Lady Henley expressed her appreciation for the work put into this Budget and City Council acknowledging the need for Princess Anne VII and VIIa. Councilman Wood requested the Staff advise City Council the average amount health care premiums would be reduced. May 6, 2014 Mayor Sessoms thanked the City Council, City Manager and the entire City Staff for their continued dedication and hard work. Mayor Sessoms expressed how impr-essed and pleased he is at the excellent job the Ciry has done during some very dicult economic times. ADJOURNMENT Mayor William D. Sessoms, Jr., DECLARED the Ciry Council Workshop ADJOURNED at 3:30 P.M. ? C Amanda Finley- arnes, CMC Chief Deputy City Clerk Ra',cth Hodges Fraser, MMC Ciry Clerk City of Virginia Beach May 6, 2014 #C>' .... 7 City of Vi rgiriia. Beaclz 3 a 0 2z S OF OUR NAt%"N WILLIAM D. SESSOMS, JR MUNICIPAL CENTER BUILDING 1, ROOM 234 MAYOR 2401 COURTHOUSE DRIVE VIRGINIA BEACH, VA 234569000 (757) 385-4581 FAX (757) 385-5699 WSESSOMSBVBGOV.COM May 6, 2014 Members of City Council RE: Reconciliation of the FY 2014-15 Operating and Capital Budgets Dear Council Members: As in the past we are providing you with a strategy to reconcile the various issues that have been raised by the community through the two public hearings and several town hall meetings, as well as suggestions that you have expressed. Hopefully, this proposal strikes a balance that i we can all support. First, several of you have expressed concerns with staff's recommendation to redirect one of the two cents of the Real Estate tax rate dedicated to roadway construction to other areas of the CIP and the Operating Budget. In working with staff, we understand their concerns over the sustainability of services to the community, but feel that it is Council's desire that the one cent be returned to roadway funding. To accomplish this without totally disrupting the Operating Budget, we would suggest a one year strategy of using additional fund balance in the amount of $4.4 million which is equal to one cent (net of the line of duty funding) to support roadway construction specifically to fund Princess Anne Road - Phase VII. Staff will modify the Ordinance to reflect the two cents remaining in roadway construction. Staff will make necessary adjustments in the FY 2016 Operating Budget to accommodate this dedication. Please note that this will again have the effect of unfunding the coastal section of the CIP in the out years. Between now and next budget cycle, we need to provide staff guidance on how to fund this essential program. Also, we believe that you would support the establishment of a committee to review and provide recommendations on the City's Tax Relief for the Elderly program. The Commissioner of the Revenue recommended this strategy based on his oversight of the program, and several members of the Mayor's Commission on Aging supported this strategy. Ms. Henley has offered to serve as liaison to this committee. We would request that the City Manager ask Budget and Management Services along with staff from the Commissioner's Office to work with Ms. Henley and this committee to complete the program review and bring forward a set of recommendations. VBgov.COnl Members of City Council Reconciliation of the FY 2014-15 Operating and Capital Budgets May 6, 2014 Page 2 Our recommended changes to the Operating Budget and CIP are detailed on the attached tables, but we want to highlight some of the significant changes below. • In the Operating Budget: 1. The recent Bond Sale saved the General Fund over $1 million. Staff is recommending that a large portion of the savings be used to establish a reserve for the School System assuming that when the State passes a budget Virginia Beach Schools will receive additional funding and that under the Revenue Sharing Formula our match wuuld increase. Both the House and Senate Budgets provide additional funding to education. The recommendation for the reserve is $725,000 to provide our required match. The School Board would decide on the best use of any additional funding, City or State, but it is our hope that they can use some of the additional fundirag to match the three percent total salary adjustment programmed for city employees. 2. Our hard working city and school employees have expressed concern over the affordability of health care premiums in 2015, we would recommend directing the Benefits Executive Committee to use the savings related to the employee's portion of the GAS645 liability in health care, or $920,000, to reduce the premiums paid by employees in the upcQming plan year. , , I 3. The Proposed Budget contains $1.45 million to begin to address horizontal salary compression. While no additional funding is provided at this time, we are recommending that we address compression by phasing in the adjustments beginning in this budget and again over the next two. By providing adjustments of $100 per year of employment up to 7 years through FY 2017, employees in compressed titles could receive up to an additional $2,100. 4. Additional funding is proposed to Fire ($145,826) and EMS ($161,791) for additional staffing to be hired January 1, 2015. This funding would provide four firefighters to increase staffing at the Centerville Fire Station and four EMS supervisors to enhance supervision of the paid and volunteer staff. Full year costs for these eight positions would double for the full FY 2016 Budget. We would also suggest that staff work to devise a long term strategy to address police staffing and deployment and present this strategy with next year's Budget. • In the Capital Budget: 1. We are suggesting that we use the $4.4 million in Fund Balance, $0.7 million from closed projects, $5 million in State Revenue Sharing funds and an additional $9.4 million in bonds to fully fund Princess Anne Road Phase VII ($14.2 million), the Adam Thoroughgood House Visitor's Center ($2 million), and match the additional state funding for the BRAC project (again contingent upon a final state budget). Funding is provided to start preliminary design work on Sandbridge/Nimmo Road (from Sandpiper to approximately 1 mile west) and to return funding for design of Princess Members of City Council Reconciliation of the FY 2014-15 Operating and Capital Budgets May 6, 2014 Page 3 Anne Road Phase VIIA (from Sandbridge/Upton Drive intersection to Indian River Road). 2. In addition, we would recommend using $1.3 million per year in Tourism Investment Program funds over the next two years, to replace the oceanfront bus fleet with trolleys. This not only would improve the ridership experience at the oceanfront, but would help HRT address the "state of good repair" concerns raised in the State's proposal on light rail funding since the current oceanfront buses are among the newest in HRT's fleet. This proposed expenditure also leverages available federal funds for fifty-five percent of the cost to acquire the new trolley fleet. 3. Finally, based on our discussions with Public Works on April 29th concerning the Eastern Shore Drive Drainage - Phase I project (#7-151), we recommend moving $3 million from that project to a new project "City-wide Sea Level Rise/Recurrent Flooding Analysis" (#7-030) to provide a macro analysis of the four city watersheds to determine vulnerable areas throughout the watersheds and possible responses. The first phase of this new project will focus on the Lynnhaven Watershed. The transfer will leave sufficient funding in Eastern Shore Drive Drainage ($13,139,356) to complete design and preliminary site acquisition for phases IA, IB, and II of the southern discharge alternative. For a complete list of all recommended adjustments please see the attached lists. We want to thank the public who came out to the various town hall meetings and public hearings to offer their comments on the FY 2014-15 Operating Budget and CIP as well as staff for their time to provide answers to our various questions. If you have any questions, please let us know. ? Sincerely, ? L William D. Sessoms, Jr. Mayor Louis R. Jones Vice Mayor W DS/crw Attachments (2) FY 2014-15 Operating Budget Reconciliation: Increase funding for CASA from $10,000 to $30,000 Provide funding to STOP Provide funding to VA Symphony Increase funding for the Arts and Humanities Commission from $428,624 to $500,000 Historic Preservation Marker Grant Increase funding for TBA Training Program from $50,000 to $63,000 Reduce funding to Mass Transit (based on HRT's current request) Reduce funding for Debt Service due to recent bond sale Reduced transfer to Housing and Neighborhood Preservation due to increase Federal Funds Reduce the General Fund Reserve for Contingencies True-up of School Funding Formula based on State Budget 4 EMS Supervisors (starts Jan 1) 4 Firefighters for Centerville Station (starts Jan i) Increase pay-go transfer to CIP for Heritage Building Maintenance Sandbridge Road Maintenance Funding Gills Cove (6.3 cents) Adjustments to Housing and Neighborhood Preservation for Federal Revenue increase: CDBG HOME - $81,551 Emergency Shelter Grant (ESG) Ho,using Opportunities for People with AIDS (HOPWA) Section 8 (147 Fund) Total Revenues Expense $ 20,01 $ 25,01 $ 25,01 $ 71,3' $ 10,01 $ 13,01 $ (181,9. $ (1,078,5, $ (26,8: $ (284,7i $ 161, $ 145, $ 125, $ 250, $ 12,143 $ 12, $ (19,279) $ (19,279) $ 81,551 $ 81,551 $ 26,834 $ 26,834 $ 99,241 $ 99,241 $ 367,048 $ 367,048 $ 567,538 $ 567,538 Capital Improvement Program Reconciliation: Capital Budget Year2 proiects 2015 2016 Adam Thoroughgood Education Center Construction (#3-019) $ 2,000,000 $ - Heritage Building Maintenance (#3-103) $ 125,000 $ - Trolley Conversion $ 1,300,000 $ 1,300,000 From close out projects $ (678,343) $ - BRAC Project (#9-060) $ 5,000,000 $ - Sandbridge Road/Nimmo Vlla (preliminary design only) $ 600,000 $ - Princess Anne Road - Phase VII (#2-195) $ 14,158,827 $ - Princess Anne Road - Phase Vlla (#2-033) $ 250,000 $ - Eastern Shore Drive Drainage - Phase I(#7-151) $ (3,000,000) $ - Citywide Sea Level Rise/Recurrent Flooding Analysis $ 3,000,000 $ - Gills Cove Neighborhood Dredging (#8-016) $ - $ 61,000 Total Projects: $ 22,755,484 $ 1,361,000 Funding Sources Additional State Funding for BRAC $ 2,500,000 $ - State Revenue Sharing Funding for PA VII $ 5,000,000 $ - TIP Fund $ 1,300,000 $ 1,300,000 SSD Gills Cove Funding $ 24,286 , Gills Cove City Contribution/Loan $ - $ 3§,714 Pay-as-you-go funding from Operating Budget $ 125,000 $ - Fund Balance (equals 1 cent for roads) takes FB to 9.7% $ 4,396,503 $ - Additional Bonds $ 9,433,981 $ - Total Funding Sources: $ 22,755,484 $ 1,361,000 $ - $ - NOTES: Changes since the Proposed Budget Proposed Changes that are dependent upon a State Budget