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HomeMy WebLinkAboutAPRIL 1, 2014 MINUTESCITY OF VIRGINIA BEACH "COMMUNITY FOR A LIFETIME" CITY COUNCIL MAYOR WILLIAM U. SESSOMS, JR., At l.arge V!('E MAYOR /.OUIS R. JONES, Baysrde - Dtsrricr a ROBER%'M. DYER, Centerville - Distrfct / BAlZBARA M. HENLEY, Princess Anne - District 7 SHANNON DS KANE, Rose Hall District 3 BR.ADMARTIN, P.E., At Large JOHN D. MOSS, At Large AMF.LIA ROSS-HAMMOND, Kemp.rville - District 2 JOHN G. UHRIN, Beach - DistrJct 6 ROSEMARY W!/,SON, At l.arge JAMH;Sl.. WOOD, Lynnhaven -District 5 CITY COUNCIL APPOINTEES CI7Y MANAGER - JAM6'S K. SPORh.' C!%Y.47'TOIZNLY - MARK D. ST/LES Cl'fY ASSF.'SSOR - JF.RALD D. BANAGAN CllY AUDl7'OR - LYNDON S. REMlAS CllY C/.F.RK - RU'%H HODGFS FRASFs'X, MMC CITY COUNCIL WORKSHOP AGENDA 01 APRIL 2014 CITY MANAGER BRIEFINGS - Conference Room - A. GASB 45 ACTUARIAL VALUATION REVIEW Chris Ford, Deputy CiTy Auditor B. 34TH STREET ENTERTAINMENT STAGE Barry Frankenfield, Director - Strategic Growth Area Office CITYHALL BU/LD/NG 2401 COURTHOUSE DRIVE V/RG/N!A BEACH, VIRGlNIA 23456-8005 PHONE: (757) 385-4303 FAX (757) 385-5669 E-MAIL: ctycncl@vbgov.com 1:30 PM II. FY 2014-15 RESOURCE MANAGEMENT PLAN (Budget) 2:00 PM CONSTITUTIONAL OFFICERS Clerk of Circuit Court - Tina Sinnen Commonwealth's Attorney - Colin Stolle Sheriff - Ken Stolle SAFE COMMUNITY Emergency Communications and Citizen Services - Athena Plummer Emergency Medical Services - Bruce Edwards Fire - Steve Cover Police - James Cervera ECONONIIC VITALITY Agriculture - David Trimmer Conventional and Visitors Bureau - 3ames Ricketts Economic Development - Warren Harris Housing and Neighborhood Preservation - Andrew Friedman Strategic Growth Area - Barry Frankenfield -1- _`, VIRGINIA BEACH CITY COUNCIL Virginia Beach, Virginia April 1, 2014 Mavor William D. Sessoms, Jr., called to order the CITY COUNCIL'S WORKSHOP in the City Council Conference Room, Tuesday, April 1, 2014, at 1: 30 P.M. Coztncil Members Present: Robert M. Dyer, Barbara M. Henley, 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, Rosemary Wilson and James L. Wood Cvuncil Members Absent: None April 1, 2014 -z- CITYMANAGER'S BRIEFING GASB 45 ACTUAL VAL UATION REVIEW I:30 P.M. Mayor Sessoms introduced and welcomed Chris Ford, Deputy Ciry Auditor. Mr. Ford expressed his appreciation to the group Milliman, Inc., the Actuarial Firm for their work on this project: Presentation to City 'Council ' April 1,, 2014 Lyndon S. Remias, CPA, CIA Ghris Ford, CPA ... Cfty Auditor Deputy City Auditor Mr. Ford provided the overview of GASB 45: GASB 45 deais with the manner in which Gavernmental entities should account for and financially repart the long term liabilities that are associated with O#her Post Employment Benefits (OPEB), excluding pensions, offered to re#irees. z April 1, 2014 -3- CITY MANA GER'S BRIEFING GASBY 45 ACTUAL VAL UATION REVIEW (Continued) • Per City Council Resolution dated June 11, 2013. • Item 3 states: "The City Auditor is directed to provide for an actuarial va{uation of retiree health care costs." 3 To gain the liability is reasonably stated by tracing assumptions back to the original source. Most importantly, the Department screens data to ensure the information is accurate: • To determine if the valuatian of the City/Schools' Governmental Accaunting Standards Board Statement 45 (GASB 45) liability and the underlying assumptions are reasonable. • The valuation is still a draft until Milliman completes its internal review. We will issue our farmal results soon after that. 4 April 1, 2014 -4- CITY MANA GER'S BRIEFING GASBY 45 ACTUAL VAL UATION REVIEW (Continued) The City fully funds the GASB 45 which is not required. Since 2008, the City has contributed a total of $39-MILLION, which has approximately $14-MILLION in unrealized gains and is actually worth appfroximately $53-MILLION.• • GASB 45 requires accrual basis accaunting for Other Post-Employment Benefits (OPEB) liability recognitian, retiree healthcare. • Choice whether to fund - So far, we have fully funded $8 million per year for 2008-2011 to the Trust. - In 2012 & 2013 we contributed around $7million combined for a total of $39 million. 5 • The $39 million in cantributions held in Virginia Pooled CJPEB Trust. -Include appraximately $14 miflion in unrealized gains for a total value of $53 million through January af 2014. 6 April 1, 2014 -5- CITY MANA GER'S BRIEFING GASB Y 45 A CTUAL VAL UA TION RE VIE W (Continued) The valuation is performed every two years; however, because of changes in the Plan, the City could begin performing an annual valuation: Contributes annually -Perform the valuation every two years as allawed by GASB. • Our last valuatian was in 2412 -Because of changes in our health plan, ACA & fiunding interest we could return to annual valuatian. January 1, 2014, the Ciry takes a snapshot of demographics and amount the City would owe for retirees less the Actuarial Value of Asset and that amount is the "unfunded " amount. Then the amount is amortized over thirty (30) years which results with the cash needed to fully fund it at $702,900, which is the combined amounts for City and Schools: Actuarial Accrued Liability (AAL) $149,533,600 Actuarial value of OPEB benefits already earned by past service Less: Actuarial Value of Assets ($52.527,900) Value of City!School contributions (AVA) & earnings heid in trust Unfunded AAL $97,005,700 Unfunded portiqn of liability Amortized Over 30 years S7,640.500 Amortized portian of liability Normal Cosi 54,707,600 Cost of OPEB being earned by employees for current year fnterestto end of'Year(Fiscal) $454,700 interest Annual Requirad Cantribution $12.802,800 Amount Required to fuliy fund (ARC) current year liability Less; PAYGO-Expected Current ($12,099,900) Estimated retiree claims & costs Year Retiree Cost paid for 2014 Cash Needed to Fuily Fund ARC $702,940 Cash caniribution needed to fund the ARC April 1, 2014 -6- CITY MANAGER'S BRIEFING GASBY 45 ACTUAL VAL UATION REVIEW (Continued) ? Actuaria(, not accaunting calculation • The Annual Required Contribution (ARC) is the 1. amartization of the unfiunded actuarial liability. 2. normal cost af the benefits currently earned this year by active employees. 9 • We FUND the ARC by paying THE current claims and benefits of retirees for the year; and, by cantributing an amaunt to the Trust for future claims. • Qur review has been beneficial during these tough budget times. ,0 April l, 2014 -7- CITYMANAGER'S BRIEFING GASB Y 45 A CTUAL VAL UA TION RE VIE W (Cosztinued) • 2014 - Schaol Demagraphic Assumptions Milliman utilizes the VRS demographic assumptions in performing the GASB 45 valuation. Cavanaugh MacDanald perForms a separate actuarial valuations of City & Schools for the Virginia Retirement System. „ We found in the original draft, the demographic assumptions of the City were being used for the entire populatian despite the fact the schaol demographics are different and there are twice as many active employees in schools. Milliman agreed and made the change to utilize the school demographics for the school population in the valuation. ,2 April 1, 2014 -&- CITYMANAGER'S BRIEFING GASBY 45 ACTUAL VAL UATIDN REVIEW (Continued) Below is the most current OPEB Trust Activity statement: •- Cosl Market Balance, 3131/12 $33.188,349.48 $39,737,403.88 Agreeswith prior WPS83l31112 Statement Contributions $7,465,200.00 $7,065,200.00 2012 & 2013 Contributions Earnings $18.461.69 $6,845,768.40 Market eamings are unrealized gains Fees ($87,063.68) ($87,083.68) Pees Balance.l,`31I14 $40,182,947.49 $53,559,308.90 Agreeswith 1;31114 Trust Statement Source: VAGO/VML QPEB Trust Statements 1' Each year, the City is required to contribute less and less cash due to changes in the Plan, the assumptions and demographics.• ,., April 1, 2014 -9- CITY MANAGER'S BRIEFING GASBY45ACTUAL VALUATIONREVIEW (Continued) • As trust exceeds $53 million at some future time use it to pay actual claims. • If GASB requires a lower discount rate funding amounts would increase. ,5 Based on the 2014 Health Plan, Milliman provided a 2015 projection of $2, 700.• Milliman's 2015 Projectian •R 1• 411 Benefits ($13,088,700) Amount Needed to Fully Fund $2,700 ,6 April 1, 2014 -10- CITYMANAGER'S BRIEFING GASBY 45 ACTUAL VAL UATION REVIEW (Continued) ? ueStI?OnS? vw ? ? A ?t. Mayor Sessoms thanked Mr. Ford and the entire Team for their hard work. April 1, 2014 -11- CITY MANA GER'S BRIEFING 34'" STREET ENTERTAINMENT STAGE 1: SO P.M. Mayor Sessoms introduced and welcomed Barry Frankenfield, Director, Strategic Growth Area Office. Mr. Frankenfield advised today's Briefing is an exciting proposed project at 34"" Street. He expressed his appreciation to the Mayor, City Council and City Manager Spore for their continued support of projects that will enhance the City: Mr. Frankenfield advised the photo below is how 34" Street looks today: April 1, 2014 -12- CITYMANAGER'S BRIEFING 34`" STREET ENTER TA INMENT STAGE (Continued) Below is the location of the proposed Stage: 34thStreet-5ta e - Loca ' a?.'`- .' ? ? ? ;, ? • . ?. E ? `?' Apprnztinari l.acatnonoF?" ;eauc ]h,U 6sccl U . , .. ...... PRO POSED ?7H S7RLE!TSTAGE h ? -?»,, ; April 1, 2014 -?3- CITYMANAGER'S BRIEFING 34`h STREET ENTER TA INMENT STAGE (Continued) The specific detail of the proposed Stage is an 8 foot diameter base with a 12 foot roof. The pedestrian clecarance is addressed and the proposed Stage will be set back five (S) feet from bike path: 34t" Street Stage - Detai s~y? S' diameter base Concrete and Steel Construction $ ii height u Approximately S' clearance on both Standing Seam Metal Roof sides for pedestrian access ? Set back from bike trail 4 ;1j21?1q PkOPO:iED ;47H.cTkLETS7'AGF, " April 1, 2014 -14- CITY MANA GER'S BRIEFING 34" STREET ENTERTAINMENT STAGE (Continued) Below is the proposed Site Plan. __ 341" Street Stage - Site Plan 34th5TREETSTAGE M ? PROPOSED?.}"('HS'ilt`cEI'S'IA4E : Below are the proposed terms of the Agreement.• 34`h Street 4/i(--14 PFOP05[1) 341115"iFEf'rS11GF H April 1, 2014 -15- CITY MANAGER'S BRIEFING 34" STREET ENTERTAINMENT STAGE (Continued) If Ciry Council so desires, the Ordinance can be placed on the next City Council Agenda for con.sideration: , ._ IV eXt StC p5 Ordinance Authorizing the dedication of the stage a PHM authorized to construct the stage • City Manager authorized to execute documents to accept the dedication of the stage Ordinance on Apri18, 2014 Council Agenda Pr.ovoseo ;41H sriieer sc:ce 1r Mayor Sessoms expressed his appreciation to Mr. Frankenfield for his dedication to this project. April 1, 2014 -16- FY 2014-1 S RESOURCE MANAGEMENT PLAN (BUDGET) CONSITUTIONAL OFFICERS CLERK OF CIRCUIT COURT - TINA SINNEN 2:21 P.M. Mayor Sessoms introduced and welcomed Tina Sinnen, Clerk of Circuit Court. Mrs. Sinnen expressed her appreciation to the Mayor, City Council and City Manager Spore for their support. 1 ' ? t Virginia Beach Circuit Court Clerk's Office Budget Woricshap April 01, 2014 Tina E. Sinnen, Clerk The Circuit Court Clerk's Office performs core services for Citizens of Virginia Beach both on the recording side and the Court side. The office has over eight hundred (800) duties assigned by the Code of Virginia. Mrs. Sinnen advised her staff is very good. She also stated State Funding pays for most of the staff's salaries: April 1, 2014 -37- FY 2014-1 S RESOURCE MANAGEMENT PLAN (BUDGET) CONSITUTIONAL OFFICERS CLERK OF CIRCUIT COURT - TINA SINNEN (CosZtinued) The City provides funding for five (S) Full Time Employees: FY 2014-15 Budget t19R flllfl m TechnologyTrust Fund s General Fund Budgetby Expense Category m =M* *E= Budget by Fund or Revenue $455,808 13.6% ? Versonnel I Operations The office continues to enhance services by the way of technology. For example, the Court Website will allow attorney's to check files and reduce the number of phone calls: Clerk of the Circuit Courrs Significant Issues ? Upgrade to our Case Management System ? Implementation is scheduled to occur within the next three months (FY 14) ? Program will only permit access by legal community (i.e., attorneys, Department of Corrections, correctional facilities' staff, etc.) ? Program will be used as resource for legal community to obtain and make copies of filed documents ? Users will be charged a fee to use this system which will provide funding for technology related costs in FY 2014-15 April 1, 2014 -18- FY 2014-1 S RESOURCE MANAGEMENT PLAN (BUDGET) CONSITUTIONAL OFFICERS CLERK OF CIRCUIT COURT - TINA SINNEN (Continued) Below are the Office's FY2014-1 S Trends and Highlights: CirEUit Court Clerk's Office FY 2014-15 firends & Highlights • Fee-based revenue tataling $52,465 camprises 3°Io af the departmenfs FY 15 tatal budgeted revenue. • FY 15 Fee-based revenue estimates increased by $5,800 based on FY 11-14 YT°B collected revenue. • State revenue totaling $1,891,459 comprises 97% of the department's FY 15 total budgeted revenue. • The Circuit Court Clerk's Office Technology Trust Fund is budgeted at $ 198,000 in FY 2014-15. These monies are state funded and are salely used for technalogy related costs. Conclusions ? As it stands, we feel good about our FY 2014-15 operating budget ? The FY 2014-15 Operating Budget will fund existing services as we anticipate another year of increased demand for services ? As you're aware, the State has not passed its FY 2014-15 Budget ? There is some uncertainty until the process is finalized. We will continue to monitor closely and evaluate how the State's finalized budget impacts our operation. Mayor Sessoms thanked Mrs. Sinnen and her entire Team for their hard work. April 1, 2014 -19- FY 2014-1 S RESOURCE MANAGEMENT PLAN (BUDGET) CONSITUTIONAL OFFICERS COMMONWEALTH'S ATTORNEY- COLW STOLLE 1:57P.M. Mayor Sessoms introduced and welcomed Colin Stolle, Commonwealth's Attorney. Mr. Stolle expressed his appreciation to the Mayor, City Council and City Manager Spore for their continued support of his office: ,. ? .., ,rw Office of the Commonwealth's Attorney Budget VIlarkshop April 1, 2014 Colara Stalle, Commanwealth's Attarney Mr. Stolle advised their Operating Budget increasecl by 1. 65% April 1, 2014 -zo- FY 2014-I S RESOURCE MANAGEMENT PLAN (BUDGET) CONSITUTIONAL OFFICERS COMMONWEALTH'S ATTORNEY - COLIN STOLLE (Continued) 62% of the Department's Budget is from the General Fund: FY 2014-15 Budget ? Budget by Fund ¦ General FUnd E DEA Seized Property B DCJS Grant R State <- m7 Budgetby Expense Category mm=* -=Personnel 6 Operations Mr. Stolle advised his office handled over 18,600 criminal charges last Fiscal Year: Office of the Commonwealth's Attorney Significant Issues ? Handled over 18,600 criminal charges last fiscal year ? Due to the increase in the use of forensic science and technology, cases are becoming more complex, requiring more time for advanced case preparation ? Due to ever-changing case law, attorneys are spending more time reading and researching to be thoroughly prepared for court ? The office prosecuted last year: ? Over 3,900 felony property crimes ? Over 1,940 various violent crimes ? Over 1,320 various felony drug offenses ? Over 230 feloriy DUI offenses Aprit 1, 2014 -21- FY 20I4-I S RESOURCE MANAGEMENT PLAN (BUDGET) CONSITUTIONAL OFFICERS COMMONWEALTH'S ATTORNEY- COLIN STOLLE (Continued) Office of the Commonwealth's Attorney Sfgnificant Issues (continued) ? Although not statutorily repuired, the office prosecuted last year: ? Over 3,400 domestic violence charges ? Over 1,340 misdemeanor DUI related charges ? Over 4,400 criminal city misdemeanor appeals (of which over 650 were DUI related) ? lust last week, the Commonwealth's Attorney's Office handled: ? 327 felony cases in Circuit Court ? 27 bond hearings; 16 bond appeal hearings; 4 detention hearings ? 118 determination of counsel hearings ? 74 sentencing hearings ? 79 preliminary hearings ? 73 revocation hearings ? 167 individual indictments (281 charges) from the March 2014 Grand Jury One of highlights is to take a full-time Legal Investigator position and replace it with two part-time Legal Investigators. Also, beginning July Is`, the Office will begin prosecuting all DUI cases. His office spent the last few months working with the General District Court about adjusting the Court Dockets: Office of the Commonwealth's Attorney Trends & HighIights ? State revenues to the City on behalf of our office increased by an estimate of $196,591, or 8.5%, for FY 14 and are expected to increase another $92,624 in FY 15. ? A full time legal investigator position has been replaced with two part-time legal investigators each working 29 hours per week giving us 18 more hours of investigative services while only increasing our FTE count by .45. ? Beginning on or about July 1, 2014 our office will prosecute every DUI offense that occurs in the City of Virginia Beach. April 1, 2014 -22- FY 2014-1 S RESO URCE MANAGEMENT PLAN (BUDGET) CONSITUTIONAL OFFICERS COMMONWEALTH'S ATTORNEY - COLIN STOLLE (Continued) Conclusions The proposed city budget for the Commonwealth's Attorney's Office will enable the City of Virginia Beach to continue to have: ?Higher than the national average conviction rates ?A continued decrease in crime rates (in part due to successful prosecution) ?The ability to keep pace with advanced legal practices and technology ?More prosecutorial assistance in complicated misdemeanor cases Ensuring a safe community for citizens and tourists Mcryor Sessoms thanked Mr. Stolle and his entire Team for their work. April 1, 2014 -23- FY 2014-I S RESOURCE MANAGEMENT PLAN (BUDGET) CONSITUTIONAL OFFICERS SHERIFF - KEN STOLLE 2:OI P.M. MayoY Sessoms introduced and welcomed Ken Stolle, Virginia Beach Sheriff. Sheriff Stolle expressed his appreciation to the Mayor, City Council and City Manager Spore for their continued support of the Sheriff's Department: ? yNeRiF,? G?t Y p, ?. ? 7.? 2.? A U C?NIAB?P ? 4, Virginia Beach Sheriffs Office Budget Workshop April 1, 2014 Below is the Sheriff's Office Organizational Chart: ? OFFICE OF THE SHERIpF ?i ORGANIZATSONALCHART . a?wxe/hbn?an?ew I ........ __............ n?..r.o. I ? . ... . ?.??b? . . . ` ? ?- April 1, 2014 -24- FY 2014-I S RESOURCE MANAGEMENT PLAN (BUDGET) CONSITUTIONAL OFFICERS SHERIFF - KEN STOLLE (Continued) Below are the Sheriff's Office Expenditures: April 1, 2014 -25- FY 2014-I S RESOURCE MANAGEMENT PLAN (BUDGET) CONSITUTIONAL OFFICERS SHERIFF - KEN STOLLE (Continued) Be1ow is the Sheriff's Offrce Revenues: Virginia Beach Sheriff's Office Comparisons April 1, 2014 -26- FY 2014-1 S RESOURCE MANAGEMENT PLAN (BUDGET) CONSITUTIONAL OFFICERS SHERIFF - KEN STOLLE (Continued) Critical Services NOT Funded 34 Deputies & 8 support staff pozi[iom $2,449,375 for the Correctional Center Replace & Upgrade Computers/Servers $915,226 New Human Resources Program $259,790 Inmate System Replacement/Upgade $3,210,500 4.05 P/T supPOrt positions $108,576 Additional and Replacement Vehicles $237,840 Renovations and Replacement Equipment fortheCOrrectionalCenter $525,316 Total $7,706,623 With the reduction of Deputy Positions, the current comp time balance is at an estimated cost of $3.2- MILLION: VIRGINIA BEACH SHERIFF'S OFFICE SIGNIFICANT ISSUES Since FY 2011, the Compensation Board has reduced our deputy positions by 18 FTEs. This resulted in the following: • Corrections currently struggles to sufficiently man the jail, conduct mandated training, accommodate reasonable leave requests, and maintain adequate manpower levels. • FY13 comp time balance ofthe sworn staff was 131,617.9 hours with the associated cost of $2,993,705.50 • FY14 current comp time balances are 151,830.5 hours with an estimated cost of $3,200,000.00. flpril 1, 2014 -z7- FY 2014-1 S RESOURCE MANAGEMENT PLAN (BUDGET) CONSITUTIONAL OFFICERS SHERIFF - KEN STOLLE (Continued) The Food Contract will be renegotiated this next Budget Year. The Sheriff's Office provides bag lunches for inmates which reduces the costs from $1.00 to $0.82 per day: Additional positions would provide • Reduction in comp time earned • Reduction in overtime earned • Eliminate mandatory training of the individuals regular day off • Realignment of staff to meet the needs of various duty posts, ie., Blue and Pink Room, single direct observation cells and hospital watches, to ensure inmate safety for the most vulnerable inmates. (The Correctional Center's inmate population requiring special care due to mental illness is 324 inmates) VIRGINIA BEACH SHERIFF'S OFFICE ?x? • The Sheriff's Office will continue Yo monitor the state budget as the General Assembly proceeds during their Session. • Pursue alternate avenues of revenue. April 1, 2014 -zs- FY 2014-I S RESO URCE MANAGEMENT PLAN (BUDGET) CONSITUTIONAL OFFICERS SHERIFF - KEN STOLLE (Continued) It is important to note the State and Federal Funding reductions: Seven Year Revenue Assessment ARUAL ARUAL ARUNL PROIERED Fro] OB Ftt18-09 Fl0930 iY Pll FY1113 N 2-13 FV13-14 PerenueType LoralFen $1,8E0,903.00 $3,218,138.00 $3,370,935.ro 53,630A15.00 $3,715,6I- $C65Bp63.00 $4,9<0,<03.00 $3,119,SW.00 Sbte $19,356,991.OU $18,638,312.00 519,383,205.ro $1).60).506W $17,638,783.00517,EB0,263.00 $17.fi05.375.W 1.00 $1E9,950.00 $512}69.00 $88),930.00 $331.300.W $210.900.00 5901.155.00 $N5,07 .00 515,6B2,OM00 52.536,?BOC.00 e?ralFUnd $13,115,266.00 $13.991,]]3.00 512,659p60.U0 $11p23,54500 512,]55,155.00516,8)2,192 O[IrerTnnsMs $350.000.00 SESO,Oro.00 $25000 $]39,51].UO 525>,998.OD $0. 50.00 50.00 FuntlBalarce 5257,314.00 $1,238,187.00 $1,33Ep23.00 $C,093,36¢00 S2,166,A3.00 S1.372,757.OU $1,365,625.30 51,1C6,311.30 535,301,W3.00 $3],233,)i8.00 $37,315,613.00 538,13C6C3.00 538,Ot5,4E0.00538,5]e,'/66.00 $39,8E3,323.30 Mayor Sessoms thanked Sheriff Stolle and his entire Office for their work. April 1, 2014 -29- FY 2014-1 S RESOURCE MANAGEMENT PLAN (BUDGET) SAFE COMMUNITY EMERGENCY COMMUNICATIONS and CITIZENS SER VICES 2:28 P.M. Mayor Sessoms introduced and welcomed Athena Plummer, Director - Emergency Communications and Citizens SeYVices. Ms. Plummer expressed her appreciation to the Mayor, Ciry Council and City Manager Spore for their continued support of her department: V'? Emergency Communications & Citizen Services Budget Warkshop April 1, 2414 Athena P'lummer, Director . ?, Ms. Plummer advised the Department's Operating Budget increased by 3.0%. The increase is specifically related to pay increases and increases in professional development.• Emergency Communications & Citizen Services Operating Budget Director's Office $ 226,206 1.75 $ 235,941 1.75 $ 9,735 4.3% Administration 368,697 4.0 380,255 4.0 11,558 3.1% Treining 46,896 NA 48,868 NA 1,972 4.2% Emergency 8,148,572 107.0 8,258,629 110.0 110,057 1.4% Communications Citizen Services 800,702 14.0 880,324 14.0 79,622 10.0% Technology & 1.045,723 1_0 521.971 2_0 (523,752) (50.0%) Support Totaf $10,525,863 227.75 $30,325,988 131.75 $(320,808) (3.091) April 1, 2014 -30- FY 2014-1 S RESOURCE MANAGEMENT PLAN (BUDGET) SAFE COMMUNITY EMERGENCY COMMUNICATIONS arzd CITIZENS SER VICES (Continued) 82% of the proposed Budget is from the General Fund with approximately 82.6% of expenditures for personnel: FY 2014-15 Budget $141,3% *M= Budget by Fund or Revenue B.238 et% iGeneralFUnd +.StateWirelessFund sTransfers Budgetby Expense Category -- Personnel e Operations Thc next generation of 911 puts the Department on IT Broadband Network, which will increase their capabilities. The average hold time is 8 seconds in 911 and 18 seconds in 311. The Department is retaining almost 100% of their employees in 311 but continues to struggle with 911 employee retention: ECCS Significant Issues ? Technology Implementation ? 311 CRM (Starting with a"lite" solution) ? Next Generation 911 (NG911) ? Call Queues/Overload ? Process changes to reduce hold times ? Weekly tracking/reporting/follow-up ? Talent Retention ? Competitive Salaries in Public Safety Setting ? Unique Training & Work Environment ? Professional Growth and Employee Development April 1, 2014 -31- FY 2014-1 S RESOURCE MANAGEMENT PLAN (BUDGET) SAFE COMMUNITY EMERGENCY COMMUNICATIONS and CITIZENS SERVICES (Continued) The Department currently has eighteen (18) vacancies. However, with the graduation of the upcoming Academy, fourteen (14) of those vacancies will be filled. The Department continues to meet with employees to discuss and address concerns: ECCS - FY15 Trends & Highlights ? Workforce ? Current retention rate of 813% ? Increases with promotions (April and June) and next academy (June 2014) ? vB9-1-1 switched to 12 hr. shift schedule ? Emerging Technologies ? NG911/CRM - interoperability with systems ? GIS/Location services ? Text to 911 ? Cybersecurity/DOS Attacks - IP backbone ? RegionalOpportunities ECC5 ' •, ? : Below are the Critical Services NOT funded: Critical Services NOT Funded ? Positions Y 911 Operations Supervisor $71,157 ? 911 Training (Life Safety) Supervisor $67,729 ? Business Application Specialist I $58,403 Y Public5afetyAnalystll $67,729 ? Technology ? CRM (CIPSubmission) $270,000 ? Smart 911 $188,000 ° • ? ,. FY 2014-I S RESOURCE MANAGEMENT PLAN April 1, 2014 -32- (BUDGET) SAFE COMMUNITY EMERGENCY COMMUNICATIONS and CITIZENS SERVICES (Continued) Major ECCS Projects Funded N872'ALI Database Management & Selective $2,007,876 Routing t1728 E9117elephony integration $1,317,744 Replacement #7391P5-Jntegrated Public Safetyi $10,839,768 •Collaborative Public 5afety Project CAD - Computer Aided Oispatch April is National 911 Month and the Department continues to strive to serve a connected community, from any device, anytime, anywhere: Conclusions ? Increased career growth opportunities ? Added more professional growth/training options ? Retained more employees since schedule change ? Updating/replacing technology systems and related processes ? 911 calls received decreased across Virginia ? Our goal is to serve a connected community, from any device, anytime, anywhere E C C S : ,,. ? -+ „ Mayor Sessoms thanked Ms. Plummer and her entire Team for their work. FY 2014-I S RESOURCE MANAGEMENT PLAN April 1, 2014 -33- (BUDGET) SAFE COMMUNITY EMERGENCYMEDICAL SERVICES 2:43 P.M. Mayor Sessoms introduced and welcomed Bruce Edwards - Chief, Emergency Medical Services. Chief Edtivards expressed his appreciation to Mayor Sessoms, City Council and City Manager Spore for their continued support: t; ?'*f A ? Emergency Medical Services Budget Workshop April 1, 2414 Chief Bruce W. Edwards uaOiEs The Department's Operating Budget increased 3.75%from FY2013-14: Emergency Medical Services Admin $ 680,323 8.5 $ 656,215 7.5 $-.24,108 -3.54% Operations/Training $6,224,590 51.5 $6,506,573 51.5 $281,953 4.53% Reguladon /lifeguard services $1,810,528 9.3 $1,893,415 10.3 $82,887 4.58% state Grants $375,000 0.0 $375,000 0.0 0 0% roml $9 090,441 693 $9,431,203 69.3 $340,762 3.75% FY 2014-1 S RESOURCE MANAGEMENT PLAN April 1, 2014 -34- (BUDGET) SAFE COMMUNITY EMERGENCYMEDICAL SERVICES (Continued) 96% of the Department's Budget is fNOm the General Fund with 59.2% of expenditures for personnel: FY 2013-14 Budget $375,000 , 4.0% ? Budget by Fund $9,056,203 96.0% ¦ General Fund .. Granls Consolidated F u n d - Stare Four for Life Grant Budget by Expense Category I? BEA'N A EMS EMS / ERS Personnel m EMS/ ERS Ops Resort Lifeguard Controct ¦ Grants - Virginia Beach Rescue Squads raises approximately $1. 7-MILLION annually and provides the City approximately $23-MILLION each year in assets: April 1, 2014 -35- FY 2014-1 S RESOURCE MANAGEMENT PLAN (BUDGET) SAFE COMMUNITY EMERGENCYMEDICAL SERVICES (Continued) Be1ow are the Department's Trends and Highlights: Emergency Medical Services FY 2014-15 Trends & Highlights ? Mental health beds at VBGH opened ? Marine Rescue Team / Lifeguard- National USLA recognition ? Increased number of ambulances staffed ? Phase in of additional ambulance at Thalia/Central Business Distract area. OUN Below is the ambulance staffing level comparison across the Region: Emergency Medical Services Ambulance Staffinq Levels 2007 2030 2013 8 or more 100°.b 100% 100°h 9 or more 80% 87% 300% 10 or more 48% 66°k 98°h llormore 20% 40% 85% 12 or more lOk 52% 71% 13 or mare 3% 9% 42% Average 10 10 12 Staffed by volunteers 85 % 89% 96% Goal of 1 ambulance for every 3,000 calls (1 3 ambulances) Calls for Service 2007 - 2013 37,771 40,823 LA April 1, 2014 -36- FY 2014-1 S RESOURCE MANAGEMENT PLAN (BUDGET) SAFE COMMUNITY EMERGENCYMEDICAL SERVICES (Continued) Below are the Department's Critical Services NOT funded: Critical Services NOT Funded ? 2 additional medics to the Thalia/Central Business Distract area $134,043 ? 4 additional EMS Supervisors $323,582 ? 2 additional Zone Cars 588,326 CIP Projects ? Landstown EMS Station (23) $ 4,186,480 ? Kempsville EMS Station (9) $ 4,570,704 mms Summary ? Volunteer staffing remains strong ? Striving to achieve goal of 13 ambulances ? Cardiac arrest survival rates remain high ? Cost of services remains low BN Mayor Sessoms thanked Chief Edwards and the entire Department for their hard work. ApriZ 1, 2014 -37- FY 2014-1 S RESOURCE MANAGEMENT PLAN (BUDGET) SAFE COMMUNITY FIRE - STEVE COVER 2:48 P.M. Mayor Sessoms introduced and welcomed Steve Cover - Fire Chief. Chief Cover expressed his appreciation to Mayor Sessoms, City Council and City Manager Spore for their continued support: d 4 !=,t $Yt Fire Budget 1lVorkshop April 1, 2014 Fire Chief Steven R, Cover The Department's Operating Budget increased 2. D% from FY2013-14: Fire O.. . ; d.. ??r??- , Ar?oderl 24 F?'E Pro?setl ? 3s FtE '' Amenced to°Fr X' Vrciposed t, Administretion $ 2,074,216 21.0 $ 2,033,065 21.0 ($ 41,151) {2:0%} Emergency $ 365,356 4.0 $ 414,834 4.0 $ 49,478 13.5% Management Fre Marshal's $ 2,388,614 27J1 $ 2,619,258 30.71 $ 230,644. 9.7% Operations $ 40,003,547 411.0 $ 41,059, 445 413.0 $ 1,055,898 2.6% Personnel & $ 1,586,314 15.0 $ 1,246,992 12.0 ($ 339,322) (21A°rb) Development Aid to Locaiities 5 1,170,518 1.0 1,170,853 1.0 $ 335 0.03% Total $ 47,588,565 479.71 $ 48,544,447 481.71 $ 955,882 2.0Y April l, 2014 -38- FY 2014-I S RESOURCE MANAGEMENT PLAN (BUDGET) SAFE COMMUNITY FIRE (Continued) 98% of the Department's Budget is from the General Fund with 88. 72% of expenditures for personnel: FY 2014-15 Budget *=M Budget by Fund ¦ General Fund Fire Programs Budget by Expense Category =M* '-Personnel W Operations Reserves and 7ransfers Below are the Department's Significant Issues Fire Significant Issues ? Blackwater Fire & EMS Station Y Replaces 1955 Fire & Rescue Station Y No additional staff needed ? Additional Part-Time Fire Inspectors Y 2.0 FTE's (4.0 PT positions) 'r SWffing shortage noted in FY2010 audit i? Will increase percentage of annual inspedions Y Increased revenue will offset expenditures ? Increase in Fees for Reinspections 'v From $25 to $50 'v Will start with second reinspection (31d inspection) 'r Consistent with wrrent practice in other municipalities ? Self-Contained BreathingApparatus Y Current equipment near end of life Y Current vendor no longer supporting equipment i- Funds will be moved from Fire Training Center pP ? Station Alerting 'r All stations should be complete by beginning of FY 2016 April l, 2014 -39- FY 2014-1 S RESOURCE MANAGEMENT PLAN (BUDGET) SAFE COMMUNITY FIRE (Continued) Be1ow are the Department's Trends and Highlights: Fire FY 2014 /15 Trends & Highlights ? 5 year Energy Savings YKilowatt usage decreased by 497,834; savings of $212,994 ? Risk Management: Safety/Wellness Programs are model for city r 67.4% reduction in claims over last five years ? Incident Responses Y FY2012 = 35,081 ? FY2013 = 39,928 ? Grants shrinking in amount and opportunity Y FY2012 = $325,760 ? FY2013 = $143,314 ? Workforce/Turnover ? Growing elderly population - Need to address prevention/safety education for this demographic Below are the Department's Critical Services NOT funded: Critical Services NOT Funded ?Four Person Staffing ?Funding requested for four firefighters ?Goal is to provide additional 80 firefighters on the remaining 20 fire apparatus that are presently staffed with three firefighters. April 1, 2014 -40- FY 2014-I S RESOURCE MANAGEMENT PLAN (BUDGET) SAFE COMMUNITY FIRE (Continued) Below are the Department's Projects that are FUNDED: Major Safe Community - Fire Projects Funded 3506000 Fre Facility Rehab & Renewal -111 $ 4,864,402 $ 300,000 07/11- 06/20 3133000 FireTrainingimprovement - III $ 2,681,781 $ 0 07/08-06/20 3134000 Fre Apparetus - III $11,871,233 $ 1,163,440 07J13 - 06/20 3023000 Fire SWtion -Town Center $ 9,435,000 $ 0 Complete 2013 3244000 Fre Station - Chesapeake Beach $ 5,664,885 $ 0 ' Complete 2013 3248000 FreSWtion - Biackwater $ 5,123,707 $ 0 10/12-06/15 3057000 Self-Contained Breathing $ 3,815,800 $ 935,508 7/14-12/16 Apparatus Replacement 3606000 CIT- Fre Station Alerting $ 3,068,366 $ 2,068,366 07/13 - 06/15 3614000 CIT- Fre Radio/In-Mask $ 4,861,758 $ 884.462 7/15-6/16 Communiwtion Chief Cover expressed appreciation to the City Council for fully funding the Department, even in diff cult years. The Department's employees are important and compression continues to be an issue for employees: Conclusions ?Appreciation for Council Funding ? ?Building CIP ?Apparatus Funding ?Station Alerting ?Acknowledgement of Ongoing Needs ?Equipment Funding ?Relocation of Resource Management ?In-Mask Communications Mayor Sessoms thanked Chief Cover and the entire Team for their hard work. April 1, 2014 -41- FY 20I4-1 S RESOURCE MANAGEMENT PLAN (BUDGET) SAFE COMMUNITY POLICE 3:17P.M. Mayor Sessoms introduced and welcomed James Cervera - Police Chief. Chief Cervera expressed his appreciation to Mayor Sessoms, Ciry Council and City Manager Spore for their continued support: '??, ?•. Police Department Budget Warkshop April 1, 2014 Chief james A. Ceruera The Department's Operating Budget increased 1.6%from FY2013-14: Police Department Operating Budget wilowom Director's Office $1,924,339 16.8 $1,939,180 16.8 $14,841 0.8% Faise Alarms 61,660 1.75 60,174 1.75 (1,486) -2.490 Professional Development 4,388,648 32.72 4,456,279 32.72 67,631 1.5% and Training Crime 828,931 8.0 881,273 8.0 52,342 63% Prevention Support 4,905,045 61.0 5,144,659 61.0 239,644 4.9% April 1, 2014 -42- FY 2014-I S RESOURCE MANAGEMENT PLAN (BUDGET) SAFE COMMUNITY POLICE (Continued) Police Department Operating Budget Canine 1,768,495 16.0 1,807,000 16.0 38,505 2.2% Helicopter 1,094,537 8.0 1,203,536 8.0 308,999 10.0Y Uniform Patrol 51,233,380 565:23 52,000,206 571:63 766,826 1.5% Red Light 1,305,791 2.4 1,164,643 2.4 (141,148) -10.81 Camera Mounted Patrol 1,477,263 16.0 1,504,394 16A 27,131 1.8% Police Department Operating Budget Officers Detective 12,821,093 142.0 12,946,054 142.0 124,961 1.0%. Bureau Special 4,836,976 52.0 4,913,111 52.0 76,135 1.6% Investigations Commercial 668 0.0 431,661 0.0 13,993 3.4% 417 EMraditions , April 1, 2014 -43- FY 2014-1 S RESOURCE MANAGEMENT PLAN (BUDGET) SAFE COMMUNITY POLICE (Continued) Total $94,222,691 1,009.36 $95,739,358 1,015J6 $1,516,667 1.6% 962% of the Department's Budget is from the General Fund with 84.22% of expenditures for personnel: FY 2014-15 Budget $3,69:,:44? 3.8% .? ¦GeneralFUnd --DepartmentRevenue s15,121,5,.7 15.89 Budgetby Expense Category, EMEMEMEMP i:Glp Budget by Revenue Source April 1, 2014 .-Personnel 9 Operations -44- FY 2014-1 S RESOURCE MANAGEMENT PLAN (BUDGET) SAFE COMMUNITY POLICE (Continued) Police Departrnent Budget Savings Renegotiated Contracts: ? Police Range - next 10 years ? Froze annual payments to initial 10 year rate beginning late FY 1415 ? Savings of $30,228 in FY 1415 ? Savings of $1.9 over next 10 years ? PhotoSafe - savings of $140,000 in FY 1415 Below are the Department's Significant Issues.• Police Department Significant Issues Additional Funding Provided in FY 1415: ? Funding for Phase I of the Oceanfront Camera System ?$2,665,400 in FY 1415 of $7,368,308 total project request ? 6.4 FTEs to monitor the system ($300,000) ?$138,700 in recurring software licensing and maintenance ?$116,886 to replace 81 outdated automated external defibrillators April l, 2014 -45- FY 20I4-1 S RESOURCE MANAGEMENT PLAN (BUDGET) SAFE COMMUNITY POLICE (Continued) Below are the Department's Trends and Highlights: Police Department FY 2014-15 Trends and Highlights • VBPD staffing of 1.8 per 1,000 residents remains much lower than national average of large cities (2.7) and neighboring Norfolk (3.1) • VBPD staffing remains much lower than other resort cities such as Myrtte Beach, Daytona Beach, and Ocean City NJ and MD. • Overtime for supplemental staffing needs increased from $222,000 in FY 1213 to $605,000 in FY 1314 and is estimated to increase again in FY 1314. • Officer fatigue factor. • There have been many additional retail, business, neighborhoods, and entertainmentfacilities constructed in the last 15 years. • Additional or expanded services such as emergency custody orders, temporary detention orders, crisis intervention cases Since 2000, the City has grown tremendously with the development of a number of new housing and neighborhoods, which has had impacts on the Department: Police Department Impacts on Police Service Since 2000 Additional RetaillBusiness/Educational Construction (examples): Town Center Phases I, II, III IV 311' StreeULaskin Road Landstown Commons ODU Higher Education Center Sentara Princess Anne Hospital Redmill Commons New Convention Center Sandler Center US Field Hockey Training Center Several additional housing and neighborhood complexes April 1, 2014 -46- FY 2014-1 S RESOURCE MANAGEMENT PLAN (BUDGET) SAFE COMMUNITY POLICE (Continued) Additionally, since 2000, the City has added a number of new or expanded entertainment events that also impact the Department: Police Department Impacts on Police Service Since 2000 Entertainment - New and Expanded Shamrock Marathon Rock and Roll Half Marathon East Coast Surf Championship Farm Bureau Amphitheater American Music Festival Princess Anne Athletic Park Susan G. Komen Race Strawberry Festival Holiday Lights Patriotic Festival Sand Soccer Tournaments Mount Trashmore Fireworks Thc City has a number of proposed projects and developments that will have future impacts on the Department: Police Department Future Impacts Forecast for Continued Increases in Development - Dome Site - Rudee Loop - Sportsplex Area - Town Center - next phase - Light Rail - Arena - Convention Center Hotel - 30th - 32"' Street redevelopment - 171h Street redevelopment April l, 2014 -47- FY 2014-I S RESOURCE MANAGEMENT PLAN (BUDGET) SAFE COMMUNITY POLICE (Continued) In an effort to properly plan for the City's growth, the Department created a Strategic Budget Plan: Police Department Strategic Budget Plan ? Request 5-Year Phase-In of New Sworn Positions (year one cost shown per program) ? Neighborhood Resources -17 sworn ($1.77 million) ? Central Business District - 15 sworn ($1.6 million) ? Oceanfront Resources - 26 sworn ($2.7 million) ? Total 58 Sworn over 5 years ? Estimated Cost of $15.5 million over 5 years Thc Department received a recommendation from the City Auditor for positions in Animal Care: Police Department Strategic Budget Plan Animal Control Positions ? Recommendation from City Auditor ? 2 part-time clerical (1 FTE) ? 3 part-time caretakers (1.9 FTE) ? Total cost of $75,212 in FY 1415 April 1, 2014 -48- FY 2014-1 S RESOURCE MANAGEMENT PLAN (BUDGET) SAFE COMMUNITY POLICE (Continued) Compression continues to be a major area of concef-n for the Department: Salary Compression ? As of March 1, 2014, 183 (23%) of 784 current police officers have the same annual base salary of $41,455 ? These 183 were hired from January 16, 2008 to July 16, 2013 ? An additional 36 current recruits would also be paid $41,455 in July 2014 ? 10 of the last 12 newly promoted sergeants are paid an average of $11,000 less in base salary per year than 48 "topped ouY" MPOs, $8,000 less than the top 155 MPOs, and $7,000 less than 224 top MPOs. ? The two lieutenants promoted on February 1, 2014 have a higher base pay than half of the current 28 lieutenants, some by several thousand doilars. Other Unfunded Requests Other unfunded requests listed in the "Requested But Not Funded" section in the front of the Budget Document April 1, 2014 -49- FY 20I4-1 S RESOURCE MANAGEMENT PLAN (BUDGET) SAFE COMMUNITY POLICE (Continued) Questions Mayor Sessoms thanked Chief Cervera and the entire Team for their hard work. April 1, 2014 -50- FY 2014-I S RESOURCE MANAGEMENT PLAN (BUDGET) ECONOMIC VITALITY AGRICULTURE 4: 00 P.M. Mayor Sessoms introduced and welcomed David Trimmer, Director - Agriculture Department. Mr. Trimmer expressed his appreciation to Mayor Sessoms, City Council and City Manager Spore for their cofatinued support.• V Agriculture Department Budget Presentation April 1, 2014 Mr. David Trimmer, Director The Department's Operating Budget increased 3.6%from FY2013-14: Agriculture Departrnent Operating Budget Director's $ 283,744 2.52 S 303,702 2.52 S 19,958 7.0% Office Extension 278,030 6.0 278,433 6.0 403 .1% Office Farmers 230,526 2.0 233,408 2 2,882 1.2% Market Ag ricu Itu ral Reserve 4,311,817 1.48 4,474,353 1.48 162,536 3.8% Prog ra m Total E5,104,117 12.0 $5,289,896 12.0 185,779 3.6% z April 1, 2014 -51- FY 2014-I S RESOURCE MANAGEMENT PLAN (BUDGET) ECONOMIC VITALITY AGRICULTURE (Continued) 84.6% of the Department's Budget is from the General Fund with 77.5% of expenditures for debt service: Below are the Department's Trends and Highlights: Agricultu€?e FY 2013-14 °rrends & Hrghlights Agriculture growth in Virginia Beach continues to be strong with an estimated economic impact of $120 million in 2013. 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, take part in activities and AG education; 500,000 estimated annual attendance with 100 plus events planned for 2014. Agricultural Reserve Program (ARP) enrolled 9,223.61 since the prog ram's inception in 1995. Currently, there is one approved application awaiting closure by the applicant on 125.03 acres with an easement value of $558,469. Nine other applications are currently under review. April 1, 2014 -52- FY 2014-1 S RESOURCE MANAGEMENT PLAN (BUDGET) ECONOMIC VITALITY AGRICULTURE (Continued) F1' 2013-I4 Agriculture Trenas & Highlights - Continued The Office of Farmland Preservation, under the Virginia Department of Agriculture and Consumer Services (VDACS), continues to partner with the City's Agricultural Reserve Program to offer reimbursement funding for easement acquisition costs to help further local dollars invested. In 2012 $110,952 was allocated. In 2013 $160,71 5 was allocated. In 2014, 5149,678 will be allocated To date, the City has been reimbursed a total of $642,911. Fiscal Year 2012-13 the Virginia Beach Office of Volunteer Resources shows Agriculture with a count of 1,065 volunteers contributing 33,871 hours with a value of $662,212 to the City (equaling 16.28 FTEs,61h highest department). FY 2013-14 Agriculture Trends & Flighlights - Continued Continued Focus on Agritourism (Partner with CVB) Farm Tours Taste of the Farmers Market Pungo Strawberry Festival - 31 It year of the celebration April 1, 2014 -53- FY 2014-I S RESOURCE MANAGEMENT PLAN (BUDGET) ECONOMIC VITALITY AGRICULTURE (Continued) Below are the Department's Top Goals and Strategies: AG Departrnent`s Top GoaCs fStrategies - - Ag Educational Programs at the Farmers Market - Expose local K-5th Grade students to Agriculture, Proper Nutrition, Farm Experiences, Master Gardener Programs: Kitchen Garden and Farmers Market Garden displays through demos, skits and tours via the Rural Heritage Center. 2012-13 2,122 Children Participants < 2013-14 Estimated 2,400 children will participate 13.1 % Increase Ag Departments Top Goa6s/Strategies - Corrtinued Continue working with local fruits and vegetable growers to assist in creating opportunities to market and sell their produce locally and increase opportunities to increase production and sales. Why Not Wednesday - 6th Year Libraries - 2^d year and expanding from 2 libraries to 4(Kempsville, Central, Princess Anne and Bayside) Wednesday evening Farmers Market Fruit and Vegetable "Live" Auction - 3rd year Eleven Major Events at the Farmers Market Harvest Fair being the largest April 1, 2014 -54- FY 2014-1 S RESOURCE MANAGEMENT PLAN (BUDGET) ECONOMIC VITALITY AGRICULTURE (Continued) Ag Departrrrerats 7op Goais,lStrategies - Cczn*inued ? Continue to focus on growing and developing the Farmers Market into a year-round shopping, AG Tourism, and community event venue for citizens and tourist to experience a family friendly environment. = Ag Tourism Hosted the Young Farmers Ranchers Leadership Conference - American Farm Bureau Federation at the Convention Center. > Hosted the 2013 Virginia AG Expo on Land of Promise Farms. Ag Departments Top Goals/Strategies - Corrtinued Continue to promote and support the numerous 4-H programs (11 clubs currently and increased clubs under consideration) offered by the Virginia Tech Extension team. 4-H In 2013 had 499 active members contributing 9,156 hours. Continue to support community agriculture venues and events < 2013 the Creeds Ruritan Club opened the Creeds Ruritan Community Complex: The Dick Cockrell Youth Arena and the Ralph Frost Activity Pavilion. April 1, 2014 -55- FY 2014-1 S RESOURCE MANAGEMENT PLAN (BUDGET) ECONOMIC VITALITY AGRICULTURE (Continued) Ag Departrnents `Top GaalsiStrategie3 - Continued ; Continue to support programs such as the Hampton Roads Buy Fresh Local Chapter, Virginia Soii and Water Conservation Programs (VADARE), Pungo Strawberry Festival (31 St Year in May 2014), Excellence in Agriculture Program (started in 1966). And the Virginia State Fair which is owned and operated by the State of Virginia Farm Bureau. Continue to support the growth of AG industry in Virginia Beach: an estimated $120 million economic impact to the City in 2013. = Continue to preserve farmland for future generations to sustain agriculture, preserve jobs, maintain a rural setting, provide open space, control density growth and protect the environment. Mcayor Sessoms thanked Mr. Trimmer and the entire Team for their hard work. April 1, 2014 -56- FY 2014-I S RESOURCE MANAGEMENT PLAN (BUDGET) ECONOMIC VITALITY CONVENTIONAND VISITORS BUREAU 4:I S P.M. Mayor Sessoms introduced and welcomed Jim Ricketts - Director, Convention & Visitors Bureau. Mr. Ricketts expressed his appreciation to Mayor Sessoms, City Council and City Manager Spore for their continued support: The Department's Operating Budget increased 2.4%, the TAP Fund and TIP Fund (Locals) increased 1.6% and the TIP Fund (Other) 0. 7% from FY2013-14: April 1, 2014 -57- FY 2014-I S RESOURCE MANAGEMENT PLAN (BUDGET) ECONOMIC VITALITY CONVENTIONAND VISITORS BUREAU (Continued) The Department has allocated $3.4-MILLION over next three (3) years: April 1, 2014 -58- FY 2014-I S RESOURCE MANAGEMENT PLAN (BUDGET) ECONOMIC VITALITY CONVENTIONAND VISITORS BUREAU (Continued) Mr. Ricketts advised the Ciry weathered the downward turn of the economy pretty well as Tourism continues to grow: Below are the Department's Top Priorities: April 1, 2014 -59- FY 2014-I S RESOURCE MANAGEMENT PLAN (BUDGET) ECONOMIC VITALITY CONVENTIONAND VISITORS BUREAU (Continued) Mr. Ricketts advised there are over one-hundred (100) cities in the United States that have a "Headquarters Hotel ". The City lacking in having such a hotel is not attracting national meetings and conventions: Mr. Ricketts advised Myrtle Beach has an annual advertising budget of $30-MILLION versus the City's $9-MILLION and is producing tangible results: 85 0 75 n 65 a' ; 55 Z45 a a p 35 71.79 72.62 71.34 ? 6878 . 85.59 - - - 60.19 ____--63.24 2008 2009 2070 2011 2072 2013 - --_ _-_ - - _ ? ? -VB -MB April 1, 2014 -60- FY 2014-1 S RESDURCE MANAGEMENT PLAN (BUDGET) ECONOMIC VITALITY CONVENTIONAND VISITORS BUREAU (Continued) Mayor Sessoms thanked Mr. Ricketts and the entire Team for their hard work. April 1, 2014 -61- FY 2014-1 S RESOURCE MANAGEMENT PLAN (BUDGET) ECONOMIC VITALITY ECONOMIC DEVELOPMENT 4:35 P.M. Mayor Sessoms introduced and welcomed Warren Harris, Director - Economic Development. Mr. Har-s•is expressed his appreciation to Mayor Sessoms, City Council and City Manager Spore for their continued support: _g .:??•° Economic Development Buaget Vlforkshop apr61 1, 2014 Warren D. Harris Director The Department's Operating Budget increased 23.90%from FY2013-14: Economic Development Operating Budget Director's Office $ 2.531,309 16 $ 2,752,079 16 $220,770 8.72% Town Center $1,868,897 NA $2,349,799 NA $480,902 25.73% SSD Town Center TIF $6,016,866 NA $7,854,794 NA $1,837,928 30.55% Capital Projects $63,390 1 $66,194 1 . $2,804 4.42% (APZ F'f E) SubTotal $30,480,462 17 $13,022,866 17 $2,542,404 24.26% GrowSmart $278,424 1 $307,836 1 $29,412 10.569/, Totol $10,758,886 18 $13,330,701 18 $2,571,816 23.90% April 1, 2014 -62- FY 2014-1 S RESOURCE MANAGEMENT PLAN (BUDGET) ECONOMIC VITALITY ECONOMIC DEVELOPMENT (Continued) 58.9% of the Department's Budget is from the Central Business District TIF and 57.8% of expenditures are for debt service: FY 2014-15 Budget $66,194 $2,349,799 .5% 17.6% $3,059,915 23.0% Budget by Fund or Revenue? eGeneralFUnd :-.CBD-TIF ?TGSSD n APZ-CapitalProject Budgetby Expense Category ?iV???df, ?„? ?' o ?iMl, °"' ?Personnel R Operationz DebtService ¦Transfers Below is the Department's Organizational Chart and Mr. Harris expressed his gratitude to his exceptional staff Economic Development Organizational Chart IBFrE •TOwnCenter55DBUdgetUnitandTOwnCen[er . TIF9ud8-nM1(NOFTE'zassociatetl) '. Wirnn D. Harrb Direttor ... .... .. ..........?- .."_"..._.._. vaum - _.........._.._ - VwGimai . M?u?M' Eruvni?..... .???emaeonalca?wiunr. ..oev?cyniemaewsry --- ...Mryv.tBrk LLtl??.W?Y . . piab.nldan = EmnomicDevebpmentBUEget IWl GrowSmartBUEgetDivision O qvZlcaprtailmprovementsvrogramBUtlget pM1Yettoeveim?m .. 1 _ .?aPeMrtx Wen? April 1, 2014 -63- FY 2014-I S RESOURCE MANAGEMENT PLAN (BUDGET) ECONOMIC VITALITY ECONOMIC DEVELOPMENT (Continued) Below are the Department's Significant Issues: Economic Development Significant Issues • Need for "producY" - sites and buildings in the market place - Continue to promote the development of Corpordte Office space and inventory to recruit and retain knowledge based companies • MainWin the current level of economic development momentum in an increasingly challenging environment • Expanding upon multi-modal transportation infrastructure that will assist with economic development growth • Arena proposals • Dome Site = • International Marketing - • Biomedical and Healthcare Marketing (Task Force) • Town Center Phase V is on-going - Block 9& 2 would be next P• Continue building a technology-oriented marketing program • Promoting Small Women and Minority related industries • GrowSmart will be in the 5`^ year of the 5-year Early Learning Challenge Grant thus a 501-C3 foundation is being pursued to assist in creating a revenue stream for the future support of the program. Below are the Department's Trends and Highlights: FY 2013-14 Trends & Highlights Sequestration is requiring defense companies to explore new business opportunities within the private business sector to offset declines in defense spending. The focus of 8io and Health Care Science inquiries has substantially increased because of the existing related assets within the Princess Anne Commons corridoc A recently formed task force is looking into leveragingthese and other regional assets for Virginia Beach. Economic Development wntinues to work closely with the SGA office to implement developmen[ plans. We have become well versed in the sports and entertainment fields as a result of working on the arena project and have been identified as a top underserved marketfor this type of investment. Last year we experienced more than $260 million in new capital investment, supporting the creation of nearly 2,200 newjobs and 1.3 million square feet of commercial space with the largest project being the $105 million ezpansion of Town Cen[er. The Department assisted 54 total companies with their location or expansion. Virginia Beach Economic Development continues to rank 2"4 in economic activity on an annual basis among Virginia communities behind Fairfax County. The eronomy is experiencing a surge in entrepreneur establish start up companies. We are addressing this opportunities by establishing an Innovation Center for start-up companies. P, , . April 1, 2014 -64- FY 2014-I S RESOURCE MANAGEMENT PLAN (BUDGET) ECONOMIC VITALITY ECONOMIC DEVELOPMENT (Continued) Economic Development FY 2013-14 Trends & Highlights Proiects by Geosrephv 2013 2014 Local 34 35 National 29 32 Intemational 30 24 TOTAL 83 91 ' Proiects bvTarQet Industrv Manufacturing 20 40 Maritime/Logistics 10 9 Technology 12 22 Defense 5 6 Office 16 18 Bio/Life Science 6 5 Retail 9 10 Other 5 10 Below are the Department's Critical Services NOT funded: Critical Services NOT Funded GrowSmart Development Specialist $70,384 Office Assistant II (Economic Development) $43,063 Business Development Rep II (Economic Development ) $75,052 Office Assistant II (Grow Smart) $42,463 Cyber Security Center for Excellence $200,000 Retail Consuitant $150,000 Restore funding for Contractual Services, Media Advertising/Publicity (GrowSmart) $6,845 Restoration of Contracted Manpower (GrowSmart) $6,000 April 1, 2014 -65- FY 2014-1 S RESOURCE MANAGEMENT PLAN (BUDGET) ECONOMIC VITALITY ECONOMIC DEVELOPMENT (Continued) Conclusions • We are preparing for uncertainty in the market place. Funding Economic Development initiatives reassures companies and investors that Virginia Beach is a stable and a business-friendly community. • Bio Science and Health Care Research and Development is an emerging target industry and we have assets in place to capitalize on it. • We are vertically integrating various business assistance programs that offer assistance for start-up, growth, and emerging companies. This is a linear progression of assistance. • We will be establishing an Innovation Center to address entrepreneurial interest in establishing new and start-ups. • We have leamed about the Sports and Entertainment industnes.and wha takes to be successful in those markets. • Expanding the inCegration of technology lnto all markettt?nd custom? ? service efforts. Ar,r ?" ? ? ? '' • The GrowSmart & APZ-1 programs continue to exc funding for these initiatives remains vitaL °?? ?????ga4 w? Questions? Mayor Sessoms thanked Mr. Harris and the entire Team for their hard work. April 1, 2014 -66- FY 2014-1 S RESDURCE MANAGEMENT PLAN (BUDGET) ECONOMIC VITALITY HOUSING AND NEIGHBORHOOD PRESERVATION S:OS P.M. Mavor Sessoms introduced and welcomed Andrew Fi°iedman - Director, Housing and Neighborhood Preservation. Mr. Friedman expressed his appreciation to Mayor Sessoms, City Council and City Manager Spore for their continued support.• u Housing and Neighborhood Preservation Budget Workshop - April 1, 2014 Andrew Friedman, Director The Department's Operating Budget increased 3.36%fYOm FY2013-14: Housing and Neighborhood Preservation Operating Budget Admin & Neighborhood $ 869,434 6.80 $ 777,391 7.14 $(92,043) (10:59%) PfE52N0tiOn . Code $2.534,231 29.80 2,474,792 29.22 (59,439) (235%) Enforcement Dev./Rehab Affordable $1,306,241 3.70 1,200,524 2.82 (105,717) f8.09%i Housing Affordable $19,914,099 21.00 20,545,527 19.69 931,428 4.68% Rental Housing Homeless 923 228 1.20 1.107,726 3.13 184.498 19.98% Programs Total $15,547,233 63.0 $26,405,960 62.0 $858,727 336% April 1, 2014 -67- FY 2014-1 S RESOURCE MANAGEMENT PLAN (BUDGET) ECONOMIC VITALITY HOUSING AND NEIGHBORHOOD PRESERVATION (Continued) 74% of the Departnzent's Budget is ftom Section 8 Funds with 80% of expenditures for programs: Budgetby Expense Category EEM* s ? T ? 1601r69].18% UI6 A ?w d-. -- rogn 31,OC? <i8, 80% Below are the Department's Significant Issues: DHNP Significant Issues ? Funds our department committed in the spring of 2013 will result in 80 new un+ts of affordable housing becoming available due to the opening of Crescent Square apartments in the spring of 2015, and we helpeii mafce possibie an additional 96 units that ti;rill aEso operr in 2015, due to providing voucher support for Baker Woods apartments. A Funding is included above current for a 2"d key step in implementing the strategic plan to end homelessness, a eentral assessment system that should ensure that all those with a housing crisis are consistently assessed and are matched with available resources regardless of where they call; this enhances the Connection Point system funded originally by Council in 2011 to provide a central calling point. April 1, 2014 -68- FY 2014-I S RESOURCE MANAGEMENT PLAN (BUDGET) ECONOMIC VITALITY HOUSING AND NEIGHBORHOOD PRESERVATION (Corctinued) DHNP Significant Issues p2 ? Contracting for the homeowner rehabilitation program was delayed due to a delay in receiving our Federal funds as well as the complexities of contracting out something that had been done in-house for 30 years. However, that has been accomplished and approximately 39 applicants are in various stages of review for potential funding by VBCDC. ? City funding is continued to help avoid cuts to r;or-pecfit providers o-1home(ess services ? We are conducting a survet° of housing ccncliticns to provide important information on how our housing stock is being maintained. This data will be available later this spring and we will provide a report and analysis at that time. Below are the Department's Trends and Highlights: DHNP FY 2014-15 Trends & Highlights ? We are reducing net positions by one, bringing the two yeai- decl€ne since 1u4y 1, 2022 to 3 r,et positions. ? In the past 12 months, we have had 3 ret9rernents gnd 4 resignations, repr•tsenting over 10% of the workforce. ? We are implementing a true "paperless office" in the housing choice voucher program, in an orderly process that involves scanning documents each month so that by about July, 2015 all documents will be held electronically. This will eliminate Tihng iabincts hc,iding 4vcr 2,000 ril2= and the ongoing sEaff worl{ needed fir retrieve, deliver and, re-file eheni. ? Current year actions show the potential for more stability in Federal funding April 1, 2014 -69- FY 20I4-1 S RESOURCE MANAGEMENT PLAN ($UDGET) ECONOMIC VITALITY HOIISING AND NEIGHBORHOOD PRESERVATION (Continued) DHNP With proposed FY 14-15 funding, we will deliver, among other things: ? 25,060 Cac;e enfarcement inspecticans r 1,900 househcslds providec3 a year of housing stability ? 290 units of affordabEe housing units created r 541 Hcausetsalds receiving temporary hcausirog assistarsce Below are the Department's Critical Services NOT funded: Critical Services NOT Funded There are rto c€°€tical serviees unfunded in our budget for FY 14-15. This is true due to new general fund support for critical items that otherwise could not have been funded. * However, this statement needs an asterisk due to the fact that actual Federal funding amounts except for the Housing Choice Voucher program have not been received as of this writing. April 1, 2014 -70- FY 2014-15 RESOURCE MANAGEMENT PLAN (BUDGET) ECONOMIC VITALITY HOUSING AND NEIGHBORHOOD PRESERVATION (Continued) Major CIP Projects Funded s B: ' 3503000 Housing Resource Center $22,795,591 $0 Construction start summer 2015; project completion 2017 The design process for the Housing Resource Center began in March, 2014 Conclusions ?Our budget as presented once again does not have final Federal numbers, so an amendment will be necessary after budget adoption. ?An increase in city funding for the central assessment system helps meet Federal requirements. ?Additional increases, especially in FY 16-17, will be needed to support operation of the Housing Resource Center ? Tharr6c yau for ysxur tirrse and support! Mcryor Sessoms thanked Mr. Friedman and the entire Team for their work. April 1, 2014 -71- FY 2014-15 RESOURCE MANAGEMENT PLAN (BUDGET) ECONOMIC VITALITY STRATEGIC GROW7'HAREA S:l6P.M. Mavor Sessoms introduced and welcomed Barry Frankenfield - Director, Strategic Growth Area. Mr. Frankenfield expressed his appreciation to Mayor Sessoms, City Council and City Manager Spore for their continued support: ??ta Strategic Growth Area Budget Workshsap April 1, 2014 Barry Frankenfield The Department's Operating Budget increased 1.1 % from FY2013-14: ToMI $14,409,103 17.0 $14,559,839 18.0 $ 250,736 1.1Y April 1, 2014 -72- FY 2014-1 S RESOURCE MANAGEMENT PLAN (BUDGET) ECONOMIC VITALITY STRATEGIC GROW7'H AREA (Continued) 47.6% of the Department's Budget is from the General Fund with 78.4% of expenditures for operations: FY 2014-15 Budget R ¦ Geoerai wnd TIP m Parking Enterprise Budget by Expense Category MMMIF *E= Budget by Fund ..:Personnel e Operations ¦ Reserves k 7ransfers ?.? 1,587,671 10.9% Debt Service Below are the Department's Signifzcant Issues: Strategic Growth Area Significant Issues ? SGA Office: • Operating budget increase of $765 primarily due to .34% salary and fringe adjustment to general fund ? Mass Transit Operetions: • SL2 FY 2013 and Hampton Roads TransiYs (HRT) initial FY 2015 projections which included Advanced Capital Contribution (ACC) funding resulted in $525,099increase ? Transportation Planning: • Transportation and Transit Manager FTE filled January 1, 2014 • FY 2015 funding level same as in FY 2014 ? Resort Programs and Special Events: • FY 2015 Budget decreased by $59,532 to reflect TIP funding reduction for oceanfrontevents ? Parking Enterprise Fund: • FY 15 Transfer to CIP decreased by $500,000 due to one-time funding for parking meter technology upgredes and replacement in FY 14 • FY 15 Budget decreased by $325,075 April 1, 2014 -73- FY 2014-15 RESOURCE MANAGEMENT PLAN (BUDGET) ECONOMIC VITALITY STRATEGIC GROWTHAREA (Continued) Strategic Growth Area Significant Issues ? Resort Programs and Special Events: • $70,000 Reson event funding diverted to fund Town Center events $0 Parking: • On-street parking meter rates increasing .SOC per hour to manage parking supply and fund technology +$340,000 •$180,000 parking fine revenue redirect from the TIP fund to Parking for fundingthe enforcement effort with a neutral effed upon the TIP fund $0 • 7he resident discount rate would increase $1 to fund the transition to a more sophisticated technology platform +$144,000 • Converted a contrectual service position to an FTE allowing for more operetional flexibility with a net neutral effect $0 • Management of the Little Island Park contred $0 Below are the Department's Trends and Highlights: Strategic Growth Area FY 2014-15 Trends & Highlights ? New zoning ordinances (Resort and CBD complete): • Without the requested Pianner FTES, rezoning will take Ionger per SGA ? Departmental media communications, public information and outreach, and City Council appointed commissions and committee support are intensifying: • Requested Media FTE to ensure accurate and timely media releases, social media communications, website development and updates ? Incentive policy adopted and implemented ? Cavalier Hotel: • With the tourism zone established, "Gap Financing" authorized, and a performance agreement approved, the tourism plan is going through the VTC and State Controller authorization process • Approved to be on the Virginia Landmarks Register and approval pending on the National Register of Historic Places April l, 2014 -74- FY 2014-15 RESOURCE MANAGEMENT PLAN (BUDGET) ECONOMIC VITALITY STRATEGIC GROW7'HAREA (Continued) Strategic Growth Area FY 2014-15 T'rends & Highlights ? Transportation and Transit • Major milestone activities with Virginia Beach Transit Extension Study (VBTES) and support for Public-Private Education Facilities and Infrastructure Act (PPEA) private proposal analysis ? Complete Streets Policy Implementation ¦ Continuing to support economic impact analysis needs, Transit Oriented Development (TOD) planning, and pedestrian and bicycle connectivity opportunities ¦ Existing and Planned Transit Operations o New HRT Cost Allocation Agreement is being developed for future consideration o Fare Box cost/revenue increases by HRT are authorized Strategic Growth Area FY 2014-15 Trends & Highlights ? Resort: ¦ Increased demand for special events • Additional year round activities and events • Events continue to support overnight visitation ? Parking: • Technologies are enabling better space supply and demand management • The 25th Street parking garage is under construction • Credit card options are growing in acceptance and awareness • Parking demand is declining, and operating efficiencies are offsetting • Continuing to refine and implement actions of the parking strategy April 1, 2014 -75- FY 2014-1 S RESOURCE MANAGEMENT PLAN (BUDGET) ECONOMIC VITALITY STRATEGIC GROWTHAREA (Continued) Below are the Department's Critical Services NOT funded: Strategic Growth Area Requested But Not Funded ? SGA Office: • Request for a Media and Communications FTE $ 65,022 • Request for a Planner II and a Planner III $ 146,566 ? Mass Transit Operations: • Request for an additional bus route to serve the Corporate Landing Business Park $ 200,000 • RAC request for oceanfront trolleys $1,388,711 • Request for additional service on an existing route to serve Baxter Rd $ 100,000 April 1, 2014 -76- FY 2014-1 S RESOURCE MANAGEMENT PLAN (BUDGET) ECONOMIC VITALITY STRATEGIC GROW7'HAREA (Continuetl) Economic and Tourism CIP Program Highlights ? Oceana ITA Conformity & Acquisition reflects a gradual reduction in funding as the number of willing sellers declines ? Economic Development Investment Program (EDIP) funding ? Maintenance funding for Oceanfront Parking Facilities, Town Center Garages & Plaza and Amphitheater ? New Projects for: 25t'' Street Public Parking Garage Acquisition; Historic Kempsville and Transit Corridor Development ? Continues funding for: Oceanfront Capital Projects Reinvestment and Winston Salem Avenue (Marina District) Improvements, ? Resort Public Transit Relocation, 291h Street Improvements, Rosemont SGA Burton Station projects (Phases I, II and 111) fully funded in prior years April l, 2014 -77- FY 2014-1 S RESOURCE MANAGEMENT PLAN (BUDGET) ECONOMIC VITALITY STRATEGIC GROWTHAREA (Continued) Economic and Tourism Development CIP '6.'? 9-085SGA-BurtonStationRoad '. $3,250,000 $0 7/11 -9/15 Improvements Phase 1I 9-091 SGA-Burton Station Road $8,500,000 $0 6/12 - 30/15 improvements Phase III 9-096 Oceanfront Capital Projects $4.200,000 $600,000 7J13 - 6/20 Reinvestment 9d08 291" Street lmprovements $3,200,000 $0 12/13 - 5/16 9-141 Economic Development - $60,988,572 ' $2,990;437 10/89-6/20 Investment Program 9476 Cape Henry Lighthouse $602,476 0 7/12 -4/15 Restoration Phase II 9-500 VirginiaBeachAmphitheater ; $1,900,000 $200,000 7/11-6/20 Capital Maintenance 9-506 Rosemont Strategic Growth Area $415,000 $0 2/14- 6/19 Economic and Tourism Development CIP Projects Not Funded ? 9-086 Oceanfront Restrooms $525,694 ? 9-095 Arctic Avenue Parking Facility $19,499,500 ? 9-100 19th Street Infrastructure Improvements $9,716,350 April 1, 2014 -78- FY 2014-15 RESOURCE MANAGEMENT PLAN (BUDGET) ECONOMIC VITALITY STRATEGIC GROWTHAREA (Continued) Economic and Tourism Development CIP Projects Deleted ? 9-504 Parliament Greenwich Connector $3,583,240 ? 9-505 Cleveland Street Phase I$6,977,656 ? Moved to the roadways CIP Section with status as Requested Not Funded Economic and Tourism Development CIP Summary ? SGA CIP Projects continue to transition from plan development to plan implementation ? Advances the City's efforts of creating a year-round resort destination and supporting a business environment that promotes economic prosperity ? Provides a mechanism to safeguard the City's past investments and to maximize the useful life of these assets Mcayor Sessoms thanked Mr. Frankenfield and the entire Team for their hard work. April l, 2014 -79- ADJOURNMENT Mayor William D. Sessoms, Jr., DECLARED the Ciry Council MeetingADJOURNED at 5:40 P.M. ayv"??-?-- Amanda Finley-Barn , CMC ChiefDeputy City Clerk th Hodges Fraser, MMC Ciry Clerk April 1, 2014