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Home My WebLink AboutMARCH 24, 2015 WORKSHOP MINUTES -1- 60°8, rr ti 4y4s vt vt„e OF OUR 1416,O VIRGINIA BEACH CITY COUNCIL Virginia Beach, Virginia March 24, 2015 Mayor William D. Sessoms, Jr., called to order the CITY COUNCIL'S WORKSHOP in the City Council Conference Room, Tuesday, March 24, 2015, at 4:00 P.M. Council Members Present: M. Benjamin Davenport, Robert M Dyer, Barbara M Henley, Vice Mayor Louis R. Jones, Shannon DS Kane, John D. Moss, Amelia N. Ross-Hammond, Mayor William D. Sessoms, Jr., Rosemary Wilson and James L. Wood Council Members Absent: John E. Uhrin family vacation March 24, 2015 -2- CITY MANAGER'S BRIEFING MS-4 STORMWATER MANAGEMENT RENEWAL 4:00 P.M. Mayor Sessoms welcomed John Fowler, City Engineer — Public Works. Mr. Fowler expressed his appreciation to City Council for their continued support: CITY OF VIRGINIA BEACH PUBLIC WORKS / ENGINEERING NPDES MS4 PERMIT (Clean Water Act Section 402) Summary of Draft Permit Presentation to City Council March 24,2015 Below is the Executive Summary of the Program: EXECUTIVE SUMMARY • `NPDES M54 is our single most important WQ Regulatory Program • EPA/ DEQ propose significant additional requirements with the draft 5-year permit • City will challenge certain of the requirements& negotiate as favorable terms as possible • Final Permit will still likely include significant additional requirements • Second briefing to Councilon final permit,its requirements,and associated resource impacts March 24, 2015 -3- CITY MANAGER'S BRIEFING MS-4 STORMWATER MANAGEMENT RENEWAL (Continued) CONTENTS I. NPDES MS4 Overview II. NPDES MS4 Draft Permit Status III. NPDES MS4 Relationship to Other Water Quality Programs IV. Requirements of the Draft Permit V. Next Steps Below is a large map of the City: NPDES MS4 OVERVIEW Ir Ni) March 24, 2015 -4- CITY MANAGER'S BRIEFING MS-4 STORMWATER MANAGEMENT RENEWAL (Continued) Below are the Storm Drain Pipes within the Municipal Center. City-wide, there are approximately 2,200 miles of Storm Drain Pipes, 600 miles of ditches, `thousands of Stormwater Inlets and 5,000 Stormwater Outfalls : Municipal Center y' r Y / 44( Under the Clean Water Act, Storm Drain Pipes are considered a Pollution Discharge System and requires an EPA permit: • ilt-*.*" "If i March 24, 2015 -5- CITY MANAGER'S BRIEFING MS-4 STORMWATER MANAGEMENT RENEWAL (Continued) Below is an overview of National Pollutant Discharge Elimination System (NPDES): NPDES MS4 OVERVIEW • NPDES—National Pollutant Discharge Elimination System • NPDES—a Federal Regulatory program under Section 402 of the Clean Water Act • NPDES—requires a permit to Discharge Pollutants • NPDES—initially focused on Industrial "point source" pollutant discharges NPDES MS4 OVERVIEW • In 1987,the NPDES program expanded to address stormwater discharges • Municipalities must obtain an NPDES Permit to discharge stormwater from the Municipal Separate Storm Sewer,System (MS4) • Virginia Beach has h"ad an NPDES MS4 Permit since 1993 • Permit Issued by DEQ, Monitored by EPA& DEQ • Permit valid for 5—years • Fines can be substantial March 24, 2015 -6- CITY MANAGER'S BRIEFING MS-4 STORMWATER MANAGEMENT RENEWAL (Continued) The current permit expired in 2006 and DEQ issued a Draft of the new Permit on January 26, 2015, and asked the City provide comments by the end of March. The Hampton Roads Planning District Commission (HRPDC)serves as a Facilitator and has developed a "baseline"regional response: Draft NPDES MS4 Permit Status • Current permit expired 2006 • Administratively continued • DEQ issued draft new permit 26 Jan 2015 • Asked for comments by 27 Feb 2015—an extension granted until 31 Mar 2015 • HRPDC Regional Environmental Committee has developed a "baseline" regional response. NPDES now covers all other permits. If any violation occurs within the other permits, it will also violate the MS4 permit—Possible double indemnity fines for NPDES are up to $32,500 per day/per violation. It is the City's belief the largest fine assessed to a MS4 in the Commonwealth is$82,000: NPDES MS4 Relationship to Other Surface Water Quality Regulatory Programs • NPDES MS4 is the Overarching Regulatory Program • The Draft NPDES MS4 Permit specifically requires compliance with other surface water quality regulatory programs. March 24, 2015 -7- CITY MANAGER'S BRIEFING MS-4 STORMWATER MANAGEMENT RENEWAL (Continued) The rendering below depicts the stormwater maintenance for residential neighborhoods on the Lynnhaven Watershed: SURFACE WATER NONAGE RT NEGULA ORE MOGRAMS Y STORM WATER MANAGEMENT •,i,) • OESWvOESI-CWA4OA • ERs roof CO VA Eva 4 FEMA'NNvlvuLOCAL IN ICWA SOS( ESAPEASE BA (CODE CA VAI S TMOAV (EXEC am(A) CHESAPEAKE Below are the high effort and high cost measures required in the "Draft Permit". As a major theme, the Permit requires the City to generate significant "self-reporting", essentially following the rules and procedures established by DEQ and EPA: MAJOR REQUIREMENTS OF THE DRAFT PERMIT I. Administration Requirements II. Inventory, Mapping and Analysis III. Stormwater Pollution Reduction IV. Operational Requirements March 24, 2015 -8- CITY MANAGER'S BRIEFING MS-4 STORMWATER MANAGEMENT RENEWAL (Continued) Below are the Administration Requirements: ADMINISTRATION REQUIREMENTS • Comprehensive MS4 Program Plan • Annual Reports • Training • Public Education • Pesticide, Herbicide and Fertilizers Plan 13 The City must develop a NPDES MS4 Program Plan and, in no way, will this be a small undertaking: DEVELOP NPDES MS4 PROGRAM PLAN • A Comprehensive Program Plan must be developed • The Program Plan details processes and responsibilities • A Program Plan is a detailed written record of how the City of Virginia Beach operates its MS4 and how it will meet all permit requirements. 14 March 24, 2015 -9- CITY MANAGER'S BRIEFING MS-4 STORMWATER MANAGEMENT RENEWAL (Continued) Currently, the Initial Report must be complete by October 1, 2015, for Fiscal Year 2014/2015. The Annual Report will consist of approximately forty (40) items,followed by numerous other items that must be reported within 12, 15, 18, 24, 36, 48 and 54 months: ANNUAL REPORTING • Annual Compliance.Reports Required • The annual report will include: —List Of inspections -List of Maintenance -List of repairs -Total number of SW facilities-operated by City -Total Linear feet of storm sevver.owned Total linear feet of storm sewer inspected Existing-City prepares annual report. Proposed—Significant additional reporting is required It is important to relate the emphasis on staff training in the proposed permit. Much of this is already done, but the new requirement is broader in scope and more regimented: REQUIRED TRAINING • Biennial training: vor.ow\ea — on illicit discharges useculeb'1 ty.1ckANO0.0 c a — on pollution prevention practices co.vct,��c —for employees at maintenance and PW facilities —for employees at recreation facilities • Training on applying pesticides and herbicides • Training on spill response • Training/certification of City employees for pollution prevention, E&S, plan reviews and inspections Expanded—City sends employees to training for required certifications March 24, 2015 -10- CITY MANAGER'S BRIEFING MS-4 STORMWATER MANAGEMENT RENEWAL (Continued) The permit requires the City to estimate the number of individuals reached through the educational programs offered by HRPDC, askHRGreen and Lynnhaven River Now. However, whether the existing level of those activities will satisfy the new permit is questionable. The City must report annually a summary of the voluntary retrofits on private property: PUBLIC OUTREACH/EDUCATION • Promote and publicize proper: —disposal of FOG —disposal of pet waste —residential car washing ''' —disposal of pesticides, 4= herbicides,and fertilizers • Promote anders • Promrt litter prevention Existing—Programs with HRPDC— HRStorm and Lynnhaven River NOW Below is an overview of inventory, mapping and analysis: INVENTORY, MAPPING AND ANALYSIS • Inventory Entire System • Outfall Inventory • Public BMP Inventory • Private BMP Inventory • Roadways March 24, 2015 -11- CITY MANAGER'S BRIEFING MS-4 STORMWATER MANAGEMENT RENEWAL (Continued) To inventory the entire system is a huge technical administrative task as approximately only 1/ of the City's stormwater system is in GIS and will cost in the range of multi-million dollars and NOW must be completed within 18 months: INVENTORY ENTIRE SYSTEM Existing-inventory was op going task but had no deadline --;T!`1, lU e 1 rpt- * . s f. ; r t r Prqposed—must be complete within 18 months EVERY OUTFALL • Determine service area • Determine amount of pervious area • Determine amount of non-pervious area • Approx. 5,000 Existing—many outfalls,locations mapped Proposed—Calculate service area,and pervious/non-pervious areas for each outfall a- March 24, 2015 -12- CITY MANAGER'S BRIEFING MS-4 STORMWATER MANAGEMENT RENEWAL (Continued) Most of the BMPs in the City are "wet ponds". So, essentially, the design documentation has to be recovered or post processed for every public BMP in the City with a database created so Summary Tabulations can be performed: EVERY PUBLIC BMP • Determine service area • Determine amount of pervious area • Determine amount of non-pervious area • Determine adequacy • 400 known BMPs W F rc Existing—many public BMPs are mapped. Proposed—Calculated service area and pervious/non-pervious areas for each Public BMP va z: Most of the Private BPMs include wet and dry detention ponds. But the same requirements are the same as the Public BMP: EVERY PRIVATE BMP • Determine service area • Determine amount of pervious area • Determine amount of non-pervious area • Determine adequacy • Approx. 2,200 Existing—few locations are mapped Proposed—Calculate service area and pervious/non-pervious areas for each private BMP March 24, 2015 -13- CITY MANAGER'S BRIEFING MS-4 STORMWATER MANAGEMENT RENEWAL (Continued) The costs are estimated at over$10-Million just for inventory and$32-Million for the drainage studies: INVENTORY • The combination of outfalls, public BMPs and private BMPs is approximately 8,000 • Each one must have a drainage analysis including: —Survey —Mapping —Pervious area —Impervious area 29 The City must have written protocol for maintenance, equipment maintenance and material storage. The City currently has 3,450 lane miles within the City, 8,500 acres of linear watershed; and, again, a database must be created and maintained: Roadways • List of roads, streets and parking lots —3450 lane miles $ ate`=' n ®e —street name —miles of roadway not ' • '' _ M1 treated by BMP's —miles of roadway treated by BMP's. New Activity- March 24, 2015 -14- CITY MANAGER'S BRIEFING MS-4 STORMWATER MANAGEMENT RENEWAL (Continued) STORMWATER POLLUTION. REDUCTION • Chesapeake Bay TMDL Action Plan • Order of Magnitude Analysis • TMDL Action Plans for Other Waterbodies • 6 26 NPDES MS4 ACTION PLAN FOR THE CHESAPEAKE BAY TMDL • Pollutants of Concern(POC)—Nitrogen, CI) Phosphorous,and Total Suspended Solids • Determine total POC loads generated in City watersheds draining to the Chesapeake Bay as of June 30, 2009 • Reduce the 2009 pollutant loads for the POCs (reductions range from 6%-20%) • Generate and execute a plan to reduce the 2009 POC loads by the required percentage within 15 years - 2 March 24, 2015 -15- CITY MANAGER'S BRIEFING MS-4 STORMWATER MANAGEMENT RENEWAL (Continued) ORDER OF MAGNITUDE ANALYSIS • Total acres in the watershed draining‘to the Chesapeake Kay:=40,960. - •-Total Phosphorous Load=71,700 lb/yr • Total Required Phosphorous Reduction=.8,801. lb/yr • Total Nitrogen Load=356,593 lb/yr • Total Required Nitrogen Reduction= 18,585 lb/yr • Total Sediment Load = 12,818,015 lb/yr • Total Required Sediment Reduction=3,355,165 • lb/yr NPDES COMPLIANCE WITH CHESAPEAKE BAY TMDL FOR MS4 PERMIT • The water quality "deficit" created by all public and private developments occurring between 2009 and July 2014 must be offset. • Includes grandfathered projects not yet built Proposed-This is a new program March 24, 2015 -16- CITY MANAGER'S BRIEFING MS-4 STORMWATER MANAGEMENT RENEWAL (Continued) The City has additional TMDLs that must meet these requirements as a condition of this Permit, including 54 impaired waters, 150 impairments, 3 TMDLs and 2 Implementation Plans: TMDL ACTION PLANS FOR OTHER WATERBODIES • Develop TMDL Action Plan within 24 months after effective date of permit to meet TMDLs • Identify means and methods to address discharges from new sources • Estimate the annual Pollutants of Concern discharge loads Proposed-This is a new program. 3L The 5 retrofit projects cost is approximately$2-Million,plus an additional 7 will be an additional$5- Million: RETROFIT PROJECTS • Complete no less than 7 retrofit projects within the first 5 years. • Target projects to b. water bodies with issued TMDLs -- Existing retrofit projects: Alanton Elementary Lynnhaven Middle Bow Creek BMP expansion Thalia Creek Retrofit Mill Dam Creek Retrofit New activity 31 March 24, 2015 -17- CITY MANAGER'S BRIEFING MS-4 STORMWATER MANAGEMENT RENEWAL (Continued) Below are the operational requirements: OPERATIONAL REQUIREMENTS • Maintenance and Inspections • Illicit Discharges • Monitoring • Monitoring Industrial Outfalls • Municipal Facilities 31 Inspection would include all manholes, drop inlet, curb inlets, pipes, ditches and BMPs. Storm/Sewer problems, such as cave-ins or flooding are reported by the public allowing the City to improve the problems without inspecting 100%of the system: STORMWATER MANAGEMENT FACILITY MAINTENANCE • Maintain or cause to be maintained EACH AND EVERY public and private storm water management facility within the City • City BMPs must be inspected annually • The City will inspect ALL privately maintained facilities no less than once every 5 years. • The City will implement program to insure proper maintenance of privately maintained SWM facilities • Inspect 100% of the Storm Sewer System in 5 years Existing—City maintains and inspects its BMPs and reports number maintained Proposed- March 24, 2015 -18- CITY MANAGER'S BRIEFING MS-4 STORMWATER MANAGEMENT RENEWAL (Continued) The sanitary sewer falls under the Special Order by Consent (SOC). Unlike Northern Virginia, the City does not have a large discharge of floatables (trash): ILLICIT DISCHARGES AND IMPROPER DISPOSAL • Inspect 280,000 linear feet of sanitary sewer • Reduce discharge of floatables • Prohibit dumping of oil, grease,fat, grass clippings, leaf litter and animal/human waste . `" Existing—City has an Illicit Discharge Detection Program Public Utilities is under a Consent Order 34 The City is currently required to do dry weather screening at 25 good locations out of 60-75 originally picked. This is performed by an annual Service Contract. Areas of concern are commercial car washes, car dealerships,pet kennels, restaurants, upstream of sensitive ecosystems and areas with a history of complaints: DRY WEATHER DISCHARGE MONITORING Requires screening a minimum of 100 outfalls each year to check for illicit discharges CII j' If outfall is submerged or '� - tidally influenced then . , screen upstream until no longer tidally influenced and visible. Existing City cw rently screens 25 location per yea' Proposed—Four fold increase ss March 24, 2015 -19- CITY MANAGER'S BRIEFING MS-4 STORMWATER MANAGEMENT RENEWAL (Continued) Wet Weather discharge monitoring are "grab samples"with no value whatsoever: WET WEATHER DISCHARGE MONITORING • Report will include: — Location — Results — Weather conditions t • 11111111/1111r — Most recent storm event — Long term trends — Follow-up action for maintenance or repair Proposed—New Activity MONITORING VPDES INDUSTRIAL PERMIT OUTFALLS • Requires the-City to obtain.a listall VPDES industrialstormwater permits-35 • Requires inspection of all permitted outfalls _ ;,_ ._ • Review Discharge Monitoring Reports(DMR) • Maintain list of stormwater dischargers NOT regulatedf gas , lib, 4, stations) $•A . . • Include list of referrals to DEQ New Activity—Begins to shift responsibility to the City 3: March 24, 2015 -20- CITY MANAGER'S BRIEFING MS-4 STORMWATER MANAGEMENT RENEWAL (Continued) SPECIAL FOCUS ON HIGH PRIORITY MUNICIPAL FACILITIES • High potential of discharging pollutants are: —Using,storing and cleaning machinery —Spills or leaks —Handling of equipment —Loading/unloading or transporting activities —Products stored outdoors —Waste in covered, non-leaking containers —Disposal of waste water Existing—Major yards are currently inspected,use good housekeeping Proposed—New major focus 3£ The City's industrial type facilities were previously regulated under the general MS4 permit. This requires the City to determine, and self-report, which of the facilities should be governed under an industrial Stormwater Permit and to apply for and comply with separate Permits issued by DEQ: SEPARATE PERMITS OF MUNICIPAL FACILTIES DEEMED INDUSTRIAL • Requires the City to screen our facilities and identify those that fit DEQ's definition of Industrial • Apply and Operate Under Industrial Permits —Fueling Facilities , —Garages —Storage Yards —Central Heat Plant t =`- 3, March 24, 2015 -21- CITY MANAGER'S BRIEFING MS-4 STORMWATER MANAGEMENT RENEWAL (Continued) Below are the next steps: NEXT STEPS • The draft permit is being reviewed by all impacted City offices • Regional Coordination through HRPDC with sister cities • Provide Comments to DEQ by March 31, 2015 —Intention is to challenge many of the requirements —Request redundancy relief • Establish City Negotiation Team to negotiate final requirements • Brief Council on the results of negotiations 40 Mayor Sessoms thanked Mr. Pullen and the entire Team for their continued hard work. March 24, 2015 -22- CITY MANAGER'S BRIEFING INTERIM FINANCIAL STATEMENT 4:42 P.M. Mayor Sessoms welcomed Patti Phillips, Director—Finance. Mrs. Phillips expressed her appreciation to City Council for their continued support: • FY15 Budget to Actual Financial lr qf, ,waS Update as of February 28,2015 Finance Overview - 8 Months • FY15 General Fund Revenues • FY15 General Fund Expenditures • Next Steps March 24, 2015 -23- CITY MANAGER'S BRIEFING INTERIM FINANCIAL STATEMENT (Continued) Below is a "snapshot"of the FY2015 General Fund Revenues and Expenditures: re 15 GF Revenues& Expendani es t.'iinti)�,s epi ti} larlct ,ct Thi ll Fen.Feb. 2 8, 2015 YTD BadailVari Revenues .._ _ &yd( ance Local (03.3%of budget) $ 842.5 $ 419.7 S(422.8) State (14.8%of budget) 149.8 57.2 (924) Federal (1.9%of budget) 19.1 12.3 (6.8) Total Revenues $1,011.4 $4993 $(522.2) Expenditures City Operations $ 655.0 S 436,8: $ 2182 School Operations 4065165 141.3 Total Expenditures $1,061.3 702.0 $.1019. Loss Amounts Funded from Fund Balance Bncumbrances/Carrrfprwerda at 6/30/14 S 99 Ctiy and School Capital rrOjects 23A School's Operating Budget 2.15 Risk Management 1.0 School Reversion 11.7 Green Run High CIP 0.3_ AdlustedExpenditures. $1,0114. Revenues do not come in equally. Revenues are at 49.1%of the estimated Budget Revenue: FYI 5 YTD General Fund Revenues Compared to Historic Trend at Feb. 28, 20 I S 1213 100K YTD ACTUAL=$489.2M ANNUAL BUDGET=$1,011.4M 75.9% 48.4% 58.3% 55.2% 'S MIS 42.3O9 % 45.0°.0 J41.8% 31.9° 31.3% Business License due date change to March 100 due to Inclement weather _. 14.3 resulted In delayed collection of$7M, 10.4% 14.3% which would have made collection 1.3% 3'8% 8R% percentage equal to trend 4.2% as , lei Aug Sap Oot Nov Dae pa rob Mar APs Nay Ms �HRer Trend --%of MS Rev Budge, March 24, 2015 -24- CITY MANAGER'S BRIEFING INTERIM FINANCIAL STATEMENT (Continued) • Still need to collect 52.6% I,reeissues - Several items are en a±li-5 Monti'lag • Total Revenue follows the trend line - Includes Tax Relief Mr Elderly da Disabled et SI 5.2M - Includes delinquents from prier years • Business license tax(BPOL)due in March 2015-$47.6M • and Real Estate installment due June 5,2015 • Personal Property tax budget-$83.819 - Collections t%date total$20.3M - Anneal levy due Jane 5.2015 will have rate of 54perhundred One of the most significant Revenues for the City is Real Estate which is at 52.6%of Budget: Rea! Estate Revenues-GE Portion Only February 28, 2009 201:4 1113 BUDGET fen $493.0 $463.2 $435.4 5423.1 54410 $428.2 $43.1 i.ff foY. 11260 52.3% 52.2% F F 52.2% 124/ Iwo• 5 3 417 30.424.5 1232.9 V � itek sive. 93C f1 f% FY NM FY2010 A'1011 FY2012 PY7113 FY2014 FY Ulf I MIACWN Collection. oYTD —o—%of TOMI *Total 4T Citywide Nudist 4f*Sena• March 24, 2015 -25- CITY MANAGER'S BRIEFING INTERIM FINANCIAL STATEMENT (Continued) Personal Property Tax is due in June; and, historically, is difficult to predict: P tr,,onal 1'r rrpt'Ft € rxe., (exclude,, PP-IPA) Feb ttt, v S , 1009 .. of '-7 NE BUDGET $83.7 $78.7 so $73.7 $74.7 w% 568'1 $65.9 1H $57.8 • 33.1% A ip 30.7% 11 fflii : 28.5% * 22.6% 22.7% so M. so 1000 or site FY0011 'Or Ss FY 001'3 FY g14 FY mai �.a�Aotual Calbo600. C1TD .+B o/Total j General Sales Taxes are up 3.1%from FY2014: General Sales Taxes February 28, 2009 201: tem � . 3.1%Up from FY14 I BUDGET Ps 560.0 555.0 556.4 $53.4 00x $51.4 550.3 $51.7 w 62.4% 61.3% 61.2% 60.5% 60.9% 60.7% , '1HHi1II ' 0% FY 71D0 FY L/0 FY 8011 FY Ills or ass FY nu FY 101/ M4Aatual CaMotlooa I=YTD -w%ot Total J. March 24, 2015 -26- CITY MANAGER'S BRIEFING INTERIM FINANCIAL STATEMENT (Continued) The Utility Tax is an extremely stable Revenue Source: 11100vTaxes lea}tr9arv21 ,. 2011 -13. Wk `201:1 BUDGET $25.424.9 $25.1 $25.3 $25.2 as 60.9% 11 58.7% 58.2% w% 153.6° 1540 i"iN6 14.6 4e% iw 1. 111 M 1Y21111 FY2014 MOO FINN "VMS L. AONYcull.lbm m7TO —4.-%*Total Telecommunication Taxes continue to decline: Ieleicncations Taxes February 28, 2011 - 20 1 5 113 2x 00% BUDGET $20.3 =19.7 so $19.7 $19.5 $18.7 eox 55.2% (( 50.3% 50.5% 50.8% !w 46.4% it tl% • 10.9 10.2 2w. $9.9 $9.5 $9.2 > .4 FY 1•11 M2212 FYSW2 MOTE - ET*GE i-_wB1AGu.1 COIIMbn� CYTO ti-%or Td�l._. March 24, 2015 -27- CITY MANAGER'S BRIEFING INTERIM FINANCIAL STATEMENT (Continued) The City continues to do well with this Tax which is a good sign that the Resort Area and hotels are doing well overall. Specifically, taxes are up 3.8%from FY2014: !Ii)1,-1 RoErm "t'a - GI"Port HI, Ooh 1,ebruary 28, 2009 - 201.; 1,43 3A%Up froFY14 BUDGET m 3• $5.8 $5.9 $6.0 $5.5 184% $5.4 $52 E5.2 84 7 6 180% 1$3 II I AF%* xsz J1 w 2% FYIOIS FY 2$12 FYnt FY21112 FYSIIU PY2064 FY21S L p�Aotua caiwlan•_ YTD .0%01 Total Total Hotel Room 'faxes February 28, 2009 - 201:) 1113 BUDGET I 3.8%Up kora FY14 I $27.2 $25.6 $26.3 $26.3 135% 126 824.2 $22.7 $22.8 20.6 21.4 20.5 105% pt 18.9 19.1 7.9 17.6 /e % % k % /o 8/0 YGG MI 7f% 7f 0% Ste K II II II II II III 26% M F% FY2800 FY2112 FY2011 PYOSIS FY2SI3 PY2SI4 FY2SI0 taAotuul Dollottb0; =YTD —%of Total ] March 24, 2015 -28- CITY MANAGER'S BRIEFING INTERIM FINANCIAL STATEMENT (Continued) 11af��.1 Room fit" 3M SB$ $0.1 GF2%$4.8 ■GF2% •CBD TIF CBD TIF $0.25 ■TAP 1%/$1 TIP 5%02.3 TAP 1%/$1$3.9 CTIP 5% 5B$1 amlTrB&,.B5011 a.* 111006:1011041:0•11.01611010: 8+r49'(ZflujWTR(S27BI1) 04dIU %fn The City continues to do well with Restaurant Meal Tax and fully expects to make Budget. This tax is up 4.7%from FY2014: Pcst< u)c:)s)t Meal Taxes - Cr Portion Orly Fchrtniry 28, 2009 -2015 +ax so 4.7%Up from FY14 ( BUDGET $38.0 $36.2 + 534.0 $35.1 4ox $32.3 $30.8 $30.9 ITD% i■f 074 22 24.4 25.5 +00X1 . ■ •7.0 20.8 21.7 T 23.6 ae% (2% �% 13% 1% 1% % iiiiiiiiiiiiiii F+a M "SON FY me FY 2011 FY PM PYN14 "2514 FY NO ...ANUN Colhlbiu =YID —a—%of Total I. March 24, 2015 -29- CITY MANAGER'S BRIEFING INTERIM FINANCIAL STATEMENT (Continued) Total Ni-ct,tt tan€Meal 1 a .ea E cht a,ti'!' ai, 200', - 2.01!) 1i7 BUDGET 4.7%Up front FY14 659.6 w E55.3 657.0 , $53.5 $50.6 Iw $48.1 $48.4 1. j3, .. � 37.0 • 33.9 35.6 :. 4�2g.9 �r3�2g.7 pt w 2 1111%_ % % I% % I. w% $ w av mx M, rr ass Ft SIM $1 Or :IIA$ -_ P12013 }x2114 FY Mg (1 I— tiaActu.l COMotbn. ®YTD -.—%of Total 05 0.44% $3.2 ■GF 3.5% TIP 1.06% $7.7 '_ ■TAP 0.5% GF 3.5%$25.5 ■TIP 1.06% TAP 0.5%$3.6 ■050.44% March 24, 2015 -30- CITY MANAGER'S BRIEFING INTERIM FINANCIAL STATEMENT (Continued) Below is a "snapshot"of the General Fund Revenues: Su€c: 11ary of City's GF 11e emacs 1"ebru Iry 28, 2.i}1`i • PV2015 YID $utis t S 'h * Real Estate Taxes $ 443.1 $ 232.9 52.6 % Personal Property Taxes 83.8 20.3 24.2 Pers.Prop.Tax Relief Act 53.4 6.5 12.2 General Sales Tax 60.0 35.3 58.8 Utility Taxes 25.2 14.6 58.2 Teleconmatnications Taxes 19.8 9.2 46.4 Business licenses 47.6 12.3 25.8 * Hotel Taxes 6.0 4.8 80.5 * Restaurant Taxes 38.0 25.5 67.2 Charges for Services 45.4 25.8 56.9 Other Local Revenues 56.7 30.0 52.9 * State Revenues 96.4 50.7 52.6 •• * Federal Revenues 19.1 12.3 64.2 * Transfers 16.9 9.0 53.4 1$ .011.4 $489.2 48.4 % •GF portion only **%doe.not include PP11tA portion Year-to-Date Expenditures are at 66.1%of Budget: F`r'151'TF?General Fund YxiritudituI Compared to historic Trend at Fel). 28,.201'..; goal --- ----- 10..0% lTD ACTUAL=$702.0M 91.5% ANNUAL BUDGET=$1,061.5M 83.5% n Oti 68.0% 60.2% 66.1% 52.6% 58.9% 1 44.5% 51.6% 36.8% 27.5°, 19.4% 28.1% 11.3° 20.2% 12.3% 11% pl Aus Sep Oct Nov Dec ]r Feb Star Apr Nay Put -Expenditure Trend -r-%ofFYI Bap Budget March 24, 2015 -31- CITY MANAGER'S BRIEFING INTERIM FINANCIAL STATEMENT (Continued) I s G,neral k'un€i irIan; r;ltn "I`t • Total at February 2 $702.0M,or 66.1%,of$1.0618 Budget Salaries $ 262,419,190 $ 169,357,171 $ 93,062,019 Fringe Benefits 101,978,830 63,454,858 38,523,972 Operating Expenses 161,620,381 120,831330 40,789,051 Capital Oathy 8,480,307 7,391,990 1,088,317 Leases,Land Structures&Improvements 4,496,286 3,236,560 1,259,726 Debt Service 48,274,437 28,212,387 20,062,050 Transfers to Schools 406,532,167 265,180,228 141,351,939 Transfers to CIP 43,141,145 28,446,823 14,694,322 Transfers to Sheriff 15,632,103 10,421 197 5,210,706 Transfers to Parks and Rey 4,524,490 3,008,659 1,515,831 Transfers to Other Areas 2,916,649 2,451,998 464,651 Reserve for Contingencies 1,439,891 - 1,439,891 Total Expenditures by Type S 1,061,455,876 S 701,993,401 S 359,462,475 Percent of Total 100.0% 66.1% 33.9% Below are the next steps: Next Step • Marco Interim Apr.28,2015 • Adopted FY16 Budget May 12,2015 • FY 2015 Fiscal Close August 15,2015 • Unaudited Financials October 2015 • CAFR December 2015 Mayor Sessoms thanked Mrs. Phillips and her entire Team for their continued hard work. March 24, 2015 -32- CITY MANAGER'S BRIEFING PENDING PLANNING ITEMS 4:54P.M. Mayor Sessoms welcomed Jack Whitney, Director—Planning. Mr. Whitney expressed his appreciation to City Council for their continued support: WCity of Virginia Beach PLANNING ITEMS April 7 and 21 City Council Meetings Three (3) items are scheduled to be heard on April 77": APRIL 7 MEETING BAYSIDE DISTRICT 1. Simon Acquisition II,LLC Norfolk Premium Outlets(Comprehensive Plan Consistency Review) BEACH DISTRICT 2. Back Bay Brew House(Conditional Use Permit-Craft Brewery) PRINCESS ANNE DISTRICT 3. McQ Builders(Conversion and Enlargement of a Nonconforming Use) Virglnlaxeat+ March 24, 2015 -33- CITY MANAGER'S BRIEFING PENDING PLANNING ITEMS (Continued) BAYSIDE Maps B-4,5,C' 5 Simon Acquisition II, LLC u ,uu,, I' .9 l/ 1. I1 \; I`5D - a 11 cif. '/ :. 1. // / ., , ,/ ip ,, �R10 c..f. /d 1216. ,: ,„,,,,,•.., ��/ . Rit '•.A . r 5 a •/..+.p MO C.Iw...P!S •.op.n span pw.wi.. Comprehensive Plan Consistency Review ..... as n. n i m '.... ...V 01‘ N I �� "i�i��,n7P,1 J\- Y \ J .0 Simon Acquisition 11,LLC. March 24, 2015 -34- CITY MANAGER'S BRIEFING PENDING PLANNING ITEMS (Continued) Relevant Information Comprehensive Plan Consistency Review of the Norfolk Premium Outlets Roadway Concept. • Section 1 5.2-2232 of the Virginia Code provides for the review by the City Council of proposed public facilities and features to determine consistency with the Comprehensive Plan. • The applicant proposes to construct a public facility, Lake Wright Boulevard, between Northampton Boulevard and a proposed 350,000 SF outlet mall in the City of Norfolk. • The purpose of the review is to determine if the prop. •adway is in substantial accord with the C. offrill, ive Plan, including thou •. „-a at; , , .r.._,_ � ' Burton S!>IOn RJ fi i •'/,-3,.-¢�5 , r ,, $', ‘'lo� C` 1,/ { r. ' fit ,pp f C r ti R W r 7—a 8.,b'- / �• s�eraoo, / Interstate Hl” ay 64 6 March 24, 2015 -35- CITY MANAGER'S BRIEFING PENDING PLANNING ITEMS (Continued) ✓::' \ r_ 4 .k ' r ' 'RMS f, `', ly. �. / ' �:- . l . • ti /d . /4► t :,{a• 1 } 46 "4. cRk ,--' .9 '�' •,.Q•°�` '-7' GA e• March 24, 2015 -36- CITY MANAGER'S BRIEFING PENDING PLANNING ITEMS (Continued) Evaluation and Recommendation • Planning Staff determined the proposed roadway is not in substantial accord with the Comprehensive Plan, including those parts adopted by reference, such as the Burton Station SGA Plan. • The Planning Commission, by a vote of 9-1, determined the proposed roadway is in substantial accord with the Comprehensive Plan, including those parts adopted by reference, such as the Burton Station SGA Plan. • There was no opposition. £Ay �' fX' e?'+ C 54 41. BEACH +IMts a,, Back Bay Brew House,L.L.C. Ce A24 7 ! .. / ''I In '''' ` i 1- A24 .avn.emw. i. A24* 1 =I'R54 -t -, 1 1 , NOT I'M X MIS NORFOLK AVENUE --- t 5i ` \ L— -t. i 912` A24 " �. , C, ©-75 i n \ •. SREET 1 , \= R5$- F\ ' 1 i\ `1 ' \.. "?' rms' `i� eye •r.wv«u r.•e.a.rwr...oo«s,..rwrro• CUP for Craft Brewery March 24, 2015 -37- CITY MANAGER'S BRIEFING PENDING PLANNING ITEMS (Continued) • _ta at; 'AA 00 "c .�• \ Sat,, `` V 4 Yom' r vC� a,M •.11'.11 fj !. 11111 Back Bay Brew House Relevant Information Conditional Use Permit for Craft Brewery • The applicant currently uses1,120 square feet within an existing multi-tenant building for the production of craft beer and a tasting room. • The applicant,based on the success of the business, proposes to expand by renovating two adjacent units in the building.The expansion will occur in two phases: • Renovation of a second floor suite to create an additional 1,180 square foot tasting room. • Expansion of the existing tasting room located on the first floor by 300 square feet as well as the addition of 900 square feet for the brewing and refrigeration of the beer. 12 March 24, 2015 -38- CITY MANAGER'S BRIEFING PENDING PLANNING ITEMS (Continued) Existing Production Space and Tasting Room Existing 2"n Floor Mezzanine 1Ary no.a. r. ."sen A. ...Ann aw an ew �e«s10°en rwM 1WM1416 ...0, "wen ill 44101 wne tao We. 1.410w Back Bay Brew House Existing Production Space and Tasting Room Existing 2'Floor Mezzanine kA'•m,. Proposed k i"' Tasting Proposed �pwty� tw S. r Room Production Zi r` 4,3,4', • Space nw1a. ..j i a"� S sN � twfoe' ". Aila7A1;�"Y.e.,:. iYr ... wwraen 4 Irl.m U.4 NS .4 sw �im 44.t., A.ween ew w] 'SI sAmer C ' I ulson 10.01,001 Y.Floor Back Bay Brew House March 24, 2015 -39- CITY MANAGER'S BRIEFING PENDING PLANNING ITEMS (Continued) NORFOLK AVEN�E itiat Bay Brew House Evaluation and Recommendation • Planning Staff recommended approval with conditions. • By a vote of 8-0-2, the Planning Commission recommends approval with conditions. • There was opposition. 16 March 24, 2015 -40- CITY MANAGER'S BRIEFING PENDING PLANNING ITEMS (Continued) PRINCESS ANNE NIy I,I0 Met Builders,L.L.C. � ` >75 'B Ldn BR' `'I Q 82_ B2' 1111 4 8 DAM NECK ROAD AM 'I p ... ,, ,'� / Rio A ,, .3/. . : ,, ii C12" j .fii:s. >7014 014 1,.i' Ilk •Zang*C.,..414.•,«dAn o.,,w...'a..... Non Conforming use n p� A6amaba A N nj.„ 0 DA`//M NECK ROAD zR �'t ``#ii a 1 //< ' OLD ` I, .Op'. ;0,,, a 18 March 24, 2015 -41- CITY MANAGER'S BRIEFING PENDING PLANNING ITEMS (Continued) Relevant Information Enlargement and Conversion of Nonconforming Uses • The site is zoned AG-2 Agricultural District,and currently consists of 12 units. • The dwelling units are contained in one single-family dwelling on one lot and four structures of varying sizes on two lots. • The four structures were constructed during the early-1950s, prior to the adoption of Princess Anne County's first zoning ordinance. • Since the AG District does not allow multifamily dwellings nor multiple dwellings on one lot,the current use of the site is nonconforming. • The applicant proposes to demolish the structures on the site and build a 12-unit single-family residential condominium development. • Since the current use of the site is nonconforming,the applicant's proposal constitutes a conversion and enlargement of nonconforming use,which may only be allowed through the approval of a resolution by City Council. � w • _ E A 9{b p xTM,j� .v Suj 4 55 _ fw Existing Site Condition 20 March 24, 2015 -42- CITY MANAGER'S BRIEFING PENDING PLANNING ITEMS (Continued) it:* ,, Y l n • titt 41*Proposed Plan 21 Evaluation and Recommendation ■ Planning Commission does not review Nonconforming Use applications. • Staff will provide the City Council with an evaluation of the request prior to the public hearing. 22 March 24, 2015 -43- CITY MANAGER'S BRIEFING PENDING PLANNING ITEMS (Continued) Five (5) items are scheduled to be heard on April 14`": APRIL 14 MEETING CITY OF VIRGINIA BEACH 1. Amendment to Zoning Ordinance("Small Wireless Telecommunications Facility"and"Temporary Construction Tower") BEACH DISTRICT 2. Tim Costen(Street Closure) CENTERVILLE DISTRICT 3. St.James Missionary Church(Modification of Conditions) KEMPSVILLE DISTRICT 4. G&A Properties(Motor Vehicle Repair) PRINCESS ANNE DISTRICT 5. HOFD Ashville Park,LLC(Modification of Proffers) Amendments to the, Zoning Ordln nce Pertaining to`Small Wlrelets Facades,*"temporary Communication Towers;'Antennas.BuildMp- Mounted;and"Communication Towers." March 24, 2015 -44- CITY MANAGER'S BRIEFING PENDING PLANNING ITEMS (Continued) Relevant Information • The proposed amendments revise and introduce new provisions pertaining to wireless communication facilities.Some of the more significant changes are the following: • Update sections of the City Zoning Ordinance pertaining to the siting and approval processes for telecommunication facilities to reflect new rules adopted by the Federal Communication Commission. • Defines and adds"temporary communication tower"as a permitted use subject to certain standards. • Adds"small wireless facilities,"such as small cell networks, network nodes,and distributed antenna systems(DAS)as a permitted use subject to certain standards. • Revises the general standards for"building-mounted antennas:" • Adds a provision that applications for building-mounted antennas and small wireless facilities that clo not meet the revfsed standards wilI need approval of a tonditions u;e Evaluation and Recommendation • The amendments will be heard by the Planning Commission during its April 8th public hearing. March 24, 2015 -45- CITY MANAGER'S BRIEFING PENDING PLANNING ITEMS (Continued) BEACH l ii: Tim Costen Re r ,Irisd='_ r >F731 r�(n' L i t ELL ` I 1_.�_ /!�(///J SCOTT ENP LA.�— 7 _ C.7] ; 1,, I_ ;n L ! .. 3 3 ;� _ L t• f}=�RSdI , � Lt1 9--Ili L iI_ A VIRGINIA BEACH BLVD RBD i I M (, .._ 11 •zw.q rnconwWw.n.e..open Spun PM...b. Street Closure-portion of Scott Bend Road • rMe.en C "-- � ,COT1 Bf`JD I Aill_ A ,i61... --7-.--- X10..T ❑ Q U Cc O r C C _ U .M 1 e Tim Costen March 24, 2015 -46- CITY MANAGER'S BRIEFING PENDING PLANNING ITEMS (Continued) Relevant Information Street Closure request for a 4,500 square foot portion of the public right-of-way known as Scott Bend Lane. • The applicant desires to incorporate the closed right-of-way into the applicant's 11,326 square foot parcel located south of the right-of-way. • The property is located within APZ-1,where residential development is incompatible.The applicant has agreed to restrict use of the combined former right-of-way and existing lot to a single-f. u ily dwelling.Thus, no additional d II be created through the do „, 21:nra' 1, OCENU ;;'8 Tim Costen March 24, 2015 -47- CITY MANAGER'S BRIEFING PENDING PLANNING ITEMS (Continued) 444 sM � i A r {sip C o f �F ' RA Ye; f . %t-.• • x R Evaluation and Recommendation • The Street Closure Viewers appointed by the City Council met, and after discussing the pertinent facts of the requested closure, concluded that there would be no public inconvenience due to the closure and abandonment of this right-of-way. • Planning Staff recommended approval with conditions. • By consent(10-0), the Planning Commission recommends approval with conditions. • Ther- s o opposition. • March 24, 2015 -48- CITY MANAGER'S BRIEFING PENDING PLANNING ITEMS (Continued) CENTERVILLE 2" 18,..4 St.James Missionary Church i J 0 i _ R10 R10 co t rs ; 3 1 / R1� �.{�' Rio R5D C OLD P:• •. NCE RD V ,i- RIO PRONOENCERO R&D R10 I , •mm.yoft C.ww.eA..ae•.o•..so...Pno..b. Modification of Conditions w L ut. ,i,uss1 4.'%' b• Fc T w , y a 4 ,F.- — - •t: .2, OLD PROVIDENCE PD [.t PROVIDENCE PD St James Missionary Church March 24, 2015 -49- CITY MANAGER'S BRIEFING PENDING PLANNING ITEMS (Continued) Relevant Information Modification of Conditions(Religious Use)for a temporary portable structure for classrooms. • A Conditional Use Permit allowing the church was approved by the City Council in 1965.The Use Permit was modified in 2002(reduction in the site area)and 2007(allowing childcare). • The modification of the Use Permit is necessary to allow the church to use a portable structure as classrooms for 'youth church,'Sunday school,and adult study groups. • The structure will also be used to support the church's community outreach activities,such as senior computer classes,job-readiness skills,GED preparation,and crime prevention initiatives. • The applicant has a fundraising effort underway to eventually replace the portable structure with a permanent addition to the church building. tit.Jaynes Missionary Church March 24, 2015 -50- CITY MANAGER'S BRIEFING PENDING PLANNING ITEMS (Continued) i' ♦ ‘,7',...""..4r,"t t..:,81. its 44 of dd v' ,e4 9 :,;,.. ,#.-4- -,.k.° °.... i i ,yh t/!° ._ . ,.. , ,..., J _> s � u Evaluation and Recommendation • Planning Staff recommended approval with conditions. • By consent(10-0), the Planning Commission recommends approval with conditions. • There was no opposition. 38' March 24, 2015 -51- CITY MANAGER'S BRIEFING PENDING PLANNING ITEMS (Continued) KEMPSVILLE Ma C-6 G &A Properties,L.L.C. A+dn _,.s:c Al2 52iiiipS2 ' :: R7.5 -1r '4.-- S ! R7.5_ 52AV. ,z �$2 %4p A24 'e,, 82 A15 •z... a.Cm...PAn...R..s,...n..w ton CUP-Automobile Repair Garage Relevant Information Conditional Use Permit for Motor Vehicle Repair • The site is currently developed with a 1,500 square foot single-story masonry building. • The building is currently vacant, but has been previously used as a car wash and for motor vehicle repair(oil change and chassis lubrication). • A 20-foot wide drive aisle allows vehicular access to the rear of the lot,where customers will leave their vehicle for repair.The rear of the lot is enclosed with chain-link fencing topped with barbed wire. • No changes are proposed to be made to the exterior of the existing building. • The barbed-wire portion of the fencing will be removed. • Evergreen plants will be installed along the fence for screening purposes. +o March 24, 2015 -52- CITY MANAGER'S BRIEFING PENDING PLANNING ITEMS (Continued) A4 Ll�a • • uq Cq To O G&A Properties,L.L.C. G&A Properties,L.L.C. March 24, 2015 -53- CITY MANAGER'S BRIEFING PENDING PLANNING ITEMS (Continued) . r le A Ptr ,L.L.C. Evaluation and Recommendation • Planning Staff recommended approval with conditions. • By consent(10-0), the Planning Commission recommends approval with conditions. • There was no opposition. March 24, 2015 -54-- CITY 54-CITY MANAGER'S BRIEFING PENDING PLANNING ITEMS (Continued) PRINCESS ANNE ,v„L,h,-13-14 HOFD Ashville Park,L.L.C. 4(y,, A.107,41, �.„..,,„,„,„,,,...,,„,t,„„.. _^ " 'i ., l ,� . 7, r.-7:,,:lie' 1 .. F R 14' � � A „,..„,,. lt ` AG1 flrr _•�2 VAG AG2 ,AGS f- G,_ i ''• I., .. d 0 B•Ld AG1 AG2 VAL a 2 AG2 •z.+w.+c..sw..wn..,on..spwvw..M Modification of Proffers • D ''' r / Nl l / .1 % 1 _..,lolAE ASHVILLI VASE SIT © ASIA PAOPOSED Of AROFFE!S - HOFD Ashville Park,LLC. March 24, 2015 -55- CITY MANAGER'S BRIEFING PENDING PLANNING ITEMS (Continued) Relevant Information Modification of Proffers of Conditional Change of Zoning approved on 5/10/2005 and modified on 2/14/2012 • The applicant requests modifications to the proffers for the purpose of changing the layout of the three 'villages'that have not yet been developed. • The intent of the revised layouts is to first,avoid wetlands created as a result of improper site grading by the previous developer,and second, provide for lot configurations that reflect the applicant's development and design principles. • Lot sizes will be consistent with those currently proffered,with the largest lots located at the eastern end of the property,adjacent to the wildlife refuge. • There will be no change in the number of units or density.The area of the site devoted to open space increases by t I acres I.Master Plan Iw& um ' . HOED Ashville Park March 24, 2015 -56- CITY MANAGER'S BRIEFING PENDING PLANNING ITEMS (Continued) • tz„ IV.Community Amenities . ,- • . .,,,, k I ..... # ., •.,.,0..,,i, ,. -,0 iir .....e- 1 . e - , /\ 1 a -- — HOFD Ashville Park VIII General Architectural Standards 11131/ '--:72'--- '''''–'ff:?" , 1 -,-f---5&=---- — -....--• . '7,7,...:1":, , HOFD Ashville Park March 24, 2015 -57- CITY MANAGER'S BRIEFING PENDING PLANNING ITEMS (Continued) Evaluation and Recommendation • Planning Staff recommended approval as proffered. • By a vote of 10-0,the Planning Commission recommends approval with proffers. ■ There was opposition. Mayor Sessoms expressed his appreciation to Mr. Whitney and the entire Department for their work. March 24, 2015 -58- CITY MANAGER'S BRIEFING PRESENTATION OF PROPOSED FY2015-16 RESOURCE MANAGEMETN PLAN (BUDGET) 5:10 P.M. Mayor Sessoms introduced City Manager James Spore. Mr. Spore advised there are three (3) significant items to highlight; 1: decision on the Arena; 2: extension of public transit to Town Center; and 3: the Biomedical Initiative. Mr. Spore thanked the School Board, City Staff and the Department Directors for their Budget submissions. Mr. Spore introduced Catheryn Whitesell, Director—Management Services, to make the presentation: esource Management Plan FY 2oi5-i6 Operating Budget and Six Year Capital Improvement Plan Below is an overview of the today's presentation: I» • What is Planned for Next FiscalYear � � .:.Where the funding Comes From Agenda OpenVB ...Next Steps March 24, 2015 -59- CITY MANAGER'S BRIEFING PRESENTATION OF PROPOSED FY2015-16 RESOURCE MANAGEMETN PLAN (BUDGET) The Proposed Operating Budget for City and Schools is $1.871-Billion, an increase of 2.2%from the current year. The proposed Budget includes compensation increases, not at the level desired by the School Board, but the same as the City has been able to do this last year. The proposed Budget reduces staff by 242 positions: FY zo16 a FY Anis Proposed %Chan. hen.e Personnel $822.4 $838.6 2.0% $16.2 Fringe Benefits 312.6 305.4 -2.3% (7.2) The Proposed Operating Expenses 450.4 442.2 -1.8% (8.2) Operating g Capital Outlay 13.8 15.8 14.8% 2.0 Budget Debt Service 163.8 166.8 1.8% 3.0 Compared to Pay-go CIP 48.1 58.1 20.8% 10.0 FY 2015 Reserves 20.4 44.7 119.4% 24.3 Total: $1,831.5 $1,871.6 2.2% 40.1 Includes 3%pay increase for both City and School employees Reduces staff by 242.8 positions Increases pay-as-you-go commitment to CIP The graph below shows the impact of inflation and population increases on the Operating Budget over the last three decades. One of the major drivers of the budget during this time period was the addition of new facilities. In addition, the City was faced with meeting unfunded mandates for class size reductions and stormwater regulations. Overall, new facilities, new mandates and new programs added over 600 new staff during this period: ,800 Budget and 6,400 ,„ac. Budget Adjusted for 800 f-Population 600 and inflation 4" *� � Bo 81 8,83 84 85 86 87 8889 go g,97 93 94 95 96 91 9899 oo of oz o3 o4 05060,o8 o9 io,,,,,3,4,5,6 --Budget Adj for Pop&Inflation March 24, 2015 -60- CITY MANAGER'S BRIEFING PRESENTATION OF PROPOSED FY2015-16 RESOURCE MANAGEMETN PLAN (BUDGET) As the chart below shows, since FY2000, the demand for services is growing about 77% above population growth. The City and School System have incorporated technology and other cost saving measures to deliver services as efficiently and effectively as possible: i8o X70 { �,t a ,So Demand for 40 ` Services Index - r I I I I qa 00 01 02 03 04 o5 06 07 08 09 io ii 12 13 14 The City requires Staff meet citizen demand and though the City is delving into more and more citizen self-service opportunities, much of what the City does requires "boots on the ground. " There are nearly 17,000 employees between the City and School System to deliver the quality services citizens have come to expect: To address service demands, this budget includes: !" 2,383 public safety positions tTakes Staff` 1,:f, 1,161 positions to assist families ow Deliver , i 996 positions providing recreation, parks and cultural activities r ` 1,320 positions to maintain roadways, water pipes, • t, storm water and other infrastructure - ••10,263 library and school personnel March 24, 2015 -61- CITY MANAGER'S BRIEFING PRESENTATION OF PROPOSED FY2015-16 RESOURCE MANAGEMETN PLAN (BUDGET) There has been a real and substantial shift in the relationship between cities and the federal/state governments. This shift has meant less funding to support mandates and core services; and, as such, the City must either increase local taxes or cut core local services. Efficiency efforts alone will not make up the loss of$91-Million. Once again, State Revenues have been reduced for education, even with State funding for a 1.5%pay increase: „r.. -:-Unfunded Mandates bac No Child Left Behind • Type of Voting Machines Virginia Public Records Act Federal Consent Decree Change in .:.Reduction in State and Federal Revenues Relationship . - SAn Reducedhared funBCadindgWine for education with State Eliminated funding for road construction and Federal ' Cost shift to the City ,and f Dropped state Line Of Duty Program on localities Requires localities to subsidize fringe benefits for Constitutional Officers Shifted Storm Water Regulations to localities e,t • ,ta 3 sgs million in lost revenue/ increased expense each year The graph below illustrates the changes in both the City and State funding to the Sheriff's Department The City's funding strategy has always been to maximize all state, federal and fee revenues with the City's contribution being last. That being said, the City must meet all State requirements for the operation of the Correction Center. Proposed funding for the Sheriff's Office is increasing by 8%; and, is by far the largest increase of any Department: State and City Financing for the Sheriff's Department 004-r ' ' • NN- 4 4y 30.0 .o a'u j S.O pp ?.n erl'f , FY o, FY o9 FY oo FY to FY 22 FY,. FY2, FY's FY 26 FY�) fad 26 ing •City State Sheriff's Fund required an additional$4.5 million in City funding Drivers ' Flat State Funding Underfunding of state compensation } Very low state salaries requiring an average city supplement of $32,000 to attract and retain qualified deputies and other staff " State only funds io%of the 36,/o the city pays in fringe benefits Medical contract costs increased March 24, 2015 -62- CITY MANAGER'S BRIEFING PRESENTATION OF PROPOSED FY2015-16 RESOURCE MANAGEMETN PLAN (BUDGET) As I mentioned before, we are not able to recommend a 5% pay increase for school and city employees...though they deserve it. We are recommending that in addition to the 1% VRS mandated increase that we provide a General Increase on July ls` to both groups. This requires nearly $15-Million in additional funding. This was partially offset by the State's budget including $2.8-Million for a 1.5% increase to SOQ teachers, which, as you all know, is not all of the staff in the School System. Also included, is the second year of the three-year commitment for horizontal compression among City staff and to provide $2-Million for adjustments to School employees on the unified pay scale as requested by the School Board. One final thing of note is, that for the first time in 5 years, we are partially funding tuition reimbursement for City employees: T Pay Increase 1.34%related to the VRS mandated requirement that employees pay 5%of their retirement costs and that the City and Schools provide a r pay raise to cover the employee's increased cost rr a.66%general increase provided in July rather than the fall as in the past Health Care • ,Compensation Maintains defined contribution strategy for the employer's contribution . r„.V R S employer's contribution rate is the same as last year for city,slight decrease for schools based on final State Budget °: Other Compensation Adjustments • Second year of three year commitment to address horizontal compression Partial adjustments for school employees on the Unified Pay Scale As just noted, we were not able to recommend full funding of the School Board's request, however we are recommending that 2 Cents of the recommended real estate tax increase be provided to the Schools to provide funding for the salary increase and unified pay scale adjustments and to reduce the School System's reliance on on-time funding to support the operating budget. School Board requested an additional$20.3 million, understanding that this would require a tax increase. " •:,This budget recommends that the dedication of real estate tax to Schools be increased from the current 4 cents,to 6 x cents to allow for the following: Provided needed funding for a 3%increase on Julys'to School employees.This is less than the School Board's request for funding for a 5%increase • txs ` Provide$2 million to make partial adjustments to the unified pay scale—no change from the School Board request " Provide$4 million to reduce the School's reliance on reversion funding and transfer the School Budget use of these funds back to - the School S ecial Reserve fund.This will provide a"fund balance" for School's use if needed. March 24, 2015 -63- CITY MANAGER'S BRIEFING PRESENTATION OF PROPOSED FY2015-16 RESOURCE MANAGEMETN PLAN (BUDGET) Funding is included in Economic Development's Operating Budget to provide$500,000 to match State funding for the Bio-Medical initiative. The funding increase is supported through the proposed 5 Cents increase in the per pack cost of cigarettes: Based on the recommendations of the City Council appointed Bio-Medical Task Force,the Operating Budget includes$500,000 to match state funding of$500,000. 2-Bio-Medical Task Force •:This will provide funding to create a thriving health care complex dedicated to advancing research and development in diabetes,cardiovascular disease, neuroscience,and traumatic brain injury. ar Funding is also included for $100,000 in support of the establishment of the ViBE District around 17th Street. The funding will provide for signage and marketing for the District and to provide a micro-loan program to assist businesses within the District. The loan program support would be matched by private funds and be administered by a non-profit organization: , , . °This district located on and around 17"'Street would promote and support creative businesses located in the district to add jobs,expand the city's economy,and enhance quality of life. iBe District Included in the Proposed Operating Budget is $50,000 for a micro-loan grant program We - fr • `< $5o,000 to brand and promote the district. �� •tiro: March 24, 2015 -64- CITY MANAGER'S BRIEFING PRESENTATION OF PROPOSED FY2015-16 RESOURCE MANAGEMETN PLAN (BUDGET) In an effort to address the backlog of lake dredging projects, it is necessary to expand the City's street sweeping program and enhance the City's ability to meet the stormwater mandates. The recommendation is to switch the stormwater to a balanced debt and pay-go strategy similar to what is used for the Water and Sewer CIP: •:°Reallocation of the existing storm water fee allows for the following: Additional street sweeping--The budget includes funds forthe first phase, purchasing 4 street sweepers and 7 staff. Storm Water Based on City Council direction on March to,2015,staff is preparing an RFP to solicit private vendors to provide this Enhancements service.No action will be taken on the funding until the results of the RFP are known. Addressing the backlog of lake dredging projects NO Rate Increase! Before diving into the CIP, it is important to state both the City and School System are cutting staff and services and are looking for ways to reduce and avoid costs. The City continues to rely heavily on Volunteers to provide services and continues working with Councilman Dyer's Process Improvement Committee looking at ways to continue this savings effort: Decreased positions by 242.8 Increases class size by one student Closure of Pendleton Child Care teducir g Elimination of D.A.R.E Program Programs and -savingC05ts In 2oi4 the city reduced its costs or avoided n ; l incurring costs by $10.4 million without reducing R services ;A*.• k aq Using volunteers to provide services rather than ;$ staff, saved over sig million March 24, 2015 -65- CITY MANAGER'S BRIEFING PRESENTATION OF PROPOSED FY2015-16 RESOURCE MANAGEMETN PLAN (BUDGET) Over the next six years, the CIP will provide over $1-BILLION in funding, with major investments in Schools, roadways and utilities. The Capital Budget, which is year one of the CIP, authorizes $316.1- Million in spending: Capital Years Bu •et 2-6 Total CIP Schools $36.5 $187.0 $223.5 Roadways' 52.1 421.8 473.9 Buildings 51.6 84.4 136.0 Capital Parks and Recreation 21.1 33.8 54.9 Improvement Utilities 63.6 311.4 375.0 Coastal 12.7 51.8 64.5 Program x Economic and Tourisme 65.0 46.1 111.1 Funding Communications and 13.5 42.8 56.3 Information Technology Total $316.1 $1,179.1 $1,495.2 Note: i Includes funding for transit related projects 2 Includes funding for arena infrastructure The proposed CIP includes funding for the infrastructure related to the Arena and is in the three (3) projects below: a5 The CIP includes$78.5 million for the infrastructure needed to support the privately constructed and financed Arena } The city's cost will be funded through the use of public facility bonds • Arena °t°There are three projects Proposed Arena Infrastructure Development -Infrastructure `$ Birdneck Road/3.7'Street Intersection Improvements(offsite) r ig'r Street Infrastructure Improvements These projects are primarily funded from current revenues within the Tourism Investment Program Fund,with a five year increase in the dollar per room night charge } March 24, 2015 -66- CITY MANAGER'S BRIEFING PRESENTATION OF PROPOSED FY2015-16 RESOURCE MANAGEMETN PLAN (BUDGET) The table below illustrates the funding in the TIP fund for the next five (5)years, including the proposed expenses. To offset the small deficit, the recommendation is to increase the Dollar per Hotel Room night charge from the current$1 to$2: innork , Y 21)6 ,a ! ]2018 201• Y 20 . Fund Balance(June 2015) $ 1.10 ,art. Current Revenues $ 36.80 $ 37.90 $ 39.09 $ 40.32 $ 41.60 $ 42.81 Arena Current Expenditures $ 36.80 $ 33.50 $ 33.74 $ 33.79 $ 32.87 $ 31.66 ,.;AS Debt Service on Arena $ - $ 2.50 $ 4.80 $ 4.97 $ 6.70 $ 8.84 n � rVUre Arena Related Expenditures $ - $ 3.40 $ 3.50 $ 3.62 $ 3.74 $ 3.86 Total Expenditures $ 36.80 $ 39.40 $ 42.04 $ 42.38 $ 43.31 $ 44.36 Financing „` � p�roil�Nvr �rrxoi> $ 1.10 3 4180) $ 42460$ 42.0$) i (1J!) $ (1.60) Addition of$1 per room night $0.96 $2.11 $2.11 $2.11 $211 $1.16 ' _ rmrh tight st ilei' $ 2.06 $ 2.67 $ 1.$S 4 146$ 2.28 $ 189 For the purpose of the proposed CIP, the recommendation is to maximize the state's commitment to pay 50%of both the Extension project and the Shared Use Path costs. As such, $20-Million is included in FY 2016 for acquisition of the light rail cars, design work, and starting utility relocation efforts with the majority of funding in the second year of the CIP: Does not preclude the City Council decision on which,if any, • 1.! locally preferred option to select :. 1• The proposed capital projects matches the State's funding of$155 million with city debt for a total project cost of$310 million ',light Rail There are three projects Virginia Beach Transit Extension Project(#2.092) { ,s • . Light Rail Corridor Shared Use Path-again funded on a 5ol5o basis with state.Total project is$17.7 million Bus for Virginia Beach Transit Extension-funded through a state h$.a grant at 68%state and 32%city.City's portion is$3.6million,HRT will receive the giant March 24, 2015 -67- CITY MANAGER'S BRIEFING PRESENTATION OF PROPOSED FY2015-16 RESOURCE MANAGEMETN PLAN (BUDGET) The table below illustrates the expenses associated with the three projects in terms of debt service: FY20 FY2017 FY2018 FY2019 FY2020 FY 021 Debt Service 0 0 $5.97 $12.17 $12.17 $12.17 Operations 0 0 0 $3.5 $7.2 $7.4 Rail Expenses 0 0 $5.97 $15.67 $19.37 $19.57 Light Rail ARP redirection $1.74 $1.79 $1,83 $1.87 $1.92 $1.96 Financing Open Space redirection $2.42 $2.47 $2.52 $2.57 $2.62 $2.68 General Fund Support $10.76 $11.03 $11.30 $11.58 $11.87 $12.10 Total Revenues: $14.92 $15.29 $15.65 $16.02 $16.41 $16.74 Revenues less Expenses $14.92 $15.29 $9.68 $0.35 ($2.96) ($2.83) Cumulative Balance $30.21 $39.89 $40.24 $37.28 $34.45 Several projects considered high priorities by City Council are included in the CIP: Bus Stop Infrastructure Accessibility Improvement Electronic Procurement System West Neck Road Phase IV ew Capital Fire Mobile Radio Repeaters • Central Plant Generator Projects Maintain and Secure Corporate Data Pleasure House Point Mitigation Princess Anne Athletic Commons Multi Purpose Athletic Field Renovation • March 24, 2015 -68- CITY MANAGER'S BRIEFING PRESENTATION OF PROPOSED FY2015-16 RESOURCE MANAGEMETN PLAN (BUDGET) The City and Schools rely on debt as a way to finance large and long lasting projects such as schools renovations, roadway construction, Arena infrastructure and transit. The graph below shows the debt per capita is not expected to exceed the current standard until 2019 and that includes the Light Rail and Arena Infrastructure projects. Debt capacity exists in the out years of the CIP to address these backlogs as may be determined by future City Councils: 3,500 $3,000 3,000 — r r r r + + -- $2,800 2,500 — 2,000 Net Debt Per 1,500 Capita 1.000 500 e 2016 2017 2018 2019 2020 2021 OProjected Current Standard-a-New Standard The City is proud to be the only Triple A bond rated community in the Hampton Roads area. So,prior to taking on these transformational projects, Staff went to the Bond Rating Agencies for their input. Generally the opinions were favorable, though concerned: :°Staff met with the Rating Agencies in the Fall to request Credit Evaluations from each on the impact of doing these large transformational projects Light Rail and the Arena Infrastructure would require$233.5 tan we take million in additional city debt over the next three years($155 million for Light Rail and$78.5 million for the Arena ,on this much Infrastructure) debt? r ? Credit evaluations provided by the rating agencies generally were favorable,but there was concern that taking on these projects could negatively impact our bond rating •: The ultimate impact will depend upon the business terms and other risk factors of these projects March 24, 2015 -69- CITY MANAGER'S BRIEFING PRESENTATION OF PROPOSED FY2015-16 RESOURCE MANAGEMETN PLAN (BUDGET) Federal Fund Balance Revenue 6.1% 1.4% 1 s� a i Real Estate State Revenue 28.2% 24.5% Where the -- Funding '''.. .. \%., , Personal Charges for Comes From \.. iProperty 7.7% Other Re Service 14.69° �� ,,, 2.1°k General Sales 3.2% Permits,Fines, Utility Taxes Restaurant Tax &Use of Hotel, 3 2.7% 2 Money/Property Amusement, Business 1.2% Cigarette 2.6% License 2.5% ..:~Agriculture Reserve Program-dedication reduced from 0.9 :' `: > cent to o.56 cent of Real Estate Tax Rate mom, '> FY201s` FY201Y., Fv20 ' FY 2010°',CY$020 FY4221.11 Debt Service 3.05 3.15 3.25 3.38 3.45 3.59 Operations 0.23 0.23 0.24 0.24 0.25 0.26 „� Total Expenses 3.28 3.38 $3.49 $3.62 $3.70 $3.85 ��,1 r Y s+`: nt esDedication $2.87 $2.94 $3.01 $3.09 $3.16 $3.22 ;u strn , L° Revenues Expenses ($0.41) ($0.44 1. ) ($0.48) ($0.53) (50.54) ($0.63) - ` Cumulative Balance $11.13 $10.69 10.21 9.68 9.14 8.51 to Currentt,. . ®R.Open Space Program-dedication reduced to 0.22%of r, Dedication ` r Restaurant Meals Tax Rate _ FY3016 FY20 t'FY2D18 #'Y2014 FY2020 Y2021 Debt Service $2.57 $2.59 $2.57 $2.60 $2.59 $2.51 `' Operations $0.52 $0.55 $0.58 $0.61 $0.64 $0.67 1 ITotal Expenses $3.09 $3.14 $3.15 $3.21 $3.23 $3.18 `I.' Open Space Dedication $2.42 $2.50 $2.52 $2.57 $2.62 $2.68 ;w- '-.1',-,.r". " ,I - %.. ",, ! Rewnnas lesExPonses ($0.67) ($0.64) ($0.63) ($0.64) ($0.61) ($0.50) Cumulative Balance $7.83 $7.19 $6.56 $5.92 $5.31 $4.81 March 24, 2015 -70- CITY MANAGER'S BRIEFING PRESENTATION OF PROPOSED FY2015-16 RESOURCE MANAGEMETN PLAN (BUDGET) The recommendation is to increase the rates for taxes: ...Real Estate Tax -- 6 cents; from 93 cents to gg cents 2 cents dedicated to Schools •.°Hotel dollar per room-night rate, increases to Proposed $2 for five years Rate increases Cigarette Tax- 5 cents per pack; from 7o cents to 75 cents ...Automobile Licenses -- $5 per vehicle; from $25 to $30 ...Residential Parking Permits at Resort-from $25 per year to $20 per month Even with these adjustments, the City will have the lowest tax rates among the major Hampton Roads Cities with the exception of the automobile license. The increases will allow the City to keep critical services going, building for the future and growing the budget by only the rate of inflation: Virginia these- Ports- Nig Newport 8 ach • ke Norfolk mouth H .•ton #sews. $0.89 $1.05 $1.15 $1.27 $1.03 $1.24 $1.22 Tax Rate / $4.00 $4.08 $4.33 $5.00 $4.25 $4.50 $4.50 e - $0.64 $1.70 $1.50 0.63 $1.23 $1.25 'Comparisons $30.00 $23.00 $26.00 $25.00 $26.00 $35.00 $26.00 ,-c, $0.75 $0.50 $0.75 $0.60 $0.50 $0.80 $0.85 _ $2136 $2701 $35 $ r $1 4 $ 7.r: 5.5% 5.5% 6.5% 6.5% 6.5% 7.5% 7.5% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% � x -• Note City Council eliminated the personal property tax on Machinery and Tools March 24, 2015 -71- CITY MANAGER'S BRIEFING PRESENTATION OF PROPOSED FY2015-16 RESOURCE MANAGEMETN PLAN (BUDGET) The proposed increases will impact the "average family" by bringing the annual tax burden up by $205 or$17 per month: Real Estate Tex $2,308.66 $2,201.86 $2,110.19 $2,054.12 $2,089.05 $2,001.36 $2,054.37 $2,230.47 Personal 208.62 163.65 160.99 190.72 231.70 238.29 291.67 310.57 Property Electricity Utility 36.00 36.00 36.00 36.00 36.00 36.00 36.00 36.00 Gas Utility 36.00 36.00 36.00 36.00 36.00 36.00 36.00 36.00 Tax burden on VATelecom 70 68 70.68 70.68 70.68 70.68 70.68 70.68 70.68 Waler UtilityT. 36.00 36.00 36.00 36.00 36.00 36.00 36.00 36.00 Virginia Beach Restaurant Tax 275.00 263.03 263.03 263.03 263.03 263.03 263.03 263.03 Admissions Tax 25.69 25.69 25.69 25.69 25.69 25.69 25.69 25.69 Family of 4 Vehicle License 50.00 50.00 50.00 50.00 50.00 50.00 50.00 60.00 Storm Water 73.37 80.67 87.97 115.34 133.59 151.84 158.05 158.05 Utility Fee Residential None None None 60.00 120.00 256.32 256.32 256.32 Refuse Fee r,.Water 8 Sewer 509.52 529.69 552.00 582.96 615.84 650.64 687.24 687.24 Annual Change $0.00 ($155.70) ($45.28) $92.00 $187.03 $108.27 $149.20 $205.00 Even with the proposed real estate tax increase, the City will go from the lowest in the region and will be tied with Chesapeake at 3.3%of median household income: • Per Capita Real Estate _ . Expenditures Taxes as a as a%of %of Median Per Ca•ita name ;li•u.hold income.. Virginia Beach 6.i% 3.1% elative Chesapeake 7.2% 3.3% asure5 i Norfolk 8.6% 3.5% TaxBurden � Portsmouth 9.1% 3.5% Suffolk 8.i% 3.9% Hampton 8.3% 3.9% Newport News 9.1% 3.3% March 24, 2015 -72- CITY MANAGER'S BRIEFING PRESENTATION OF PROPOSED FY2015-16 RESOURCE MANAGEMETN PLAN (BUDGET) The City has partnered with Socrata to provide budget data to citizens. Citizens will now have at their fingertips the ability to create charts and graphs summarizing various levels of budget data. This project is in an effort to provide a high level of transparency and encourage citizen engagement to promote a better understanding of the City's overall financial picture: tate'Otidget $2,596,380,202 Less: Internal Service Funds $198,066,313 Transfers between Funds $526,672,314 Net Budget $1,871,641,575 l°1V13 http://www.vbgov.com Below are the Nest Steps: y/orkshons Tuesday April Tuesday April IA'' Tuesday April u" Tuesday April 28th(special meeting) Tuesday May 5"'-Reconciliation :Next Steps Public Hearings Thursday April 23'd at Green Run High School at 6pm(special meeting) Tuesday April 28t' in the City Council Chambers at 6pm(special meeting) Vote—Tuesday May 12th(special meeting) Mayor Sessoms thanked Mr. Spore, Ms. Whitesell and the entire team for their work on the proposed Budget. March 24, 2015 -73- ADJOURNMENT Mayor William D. Sessoms,Jr., DECLARED the City Council Meeting ADJOURNED at 5:55 P.M. iAAA4i./1 £ D .r Amanda Finley-Barnes, CM' Chief Deputy City Clerk a R h Hodges Fraser, MMC City Clerk March 24, 2015