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Home My WebLink AboutAPRIL 14, 2020 CITY STAFF PRESENTATIONS U c s� ."� IN) 5)i1/4\,. a J 9+sd 44 0, OUR AT0O ...,/ VIRGINIA BEACH CITY COUNCIL Virginia Beach, Virginia April 14, 2020 On March 12, 2020, Governor Northam declared a state of emergency due to COVID-19, as a result, the normally scheduled City Council Workshop for Tuesday, April 14, 2020, is CANCELLED. However, City Staff appeared in the City Manager's Conference Room and gave the following presentations (attached hereto and made a part of the record). The presentations were broadcasted on cable television, vbgov.com and Facebook Live: • COVID-19 UPDATE Dr. Demetria Lindsay, Department of Public Health Erin Sutton, Director—Emergency Management • CITY MANAGER'S FY 2020-2021 REVISED PROPOSED OPERATING BUDGET AND CAPITAL IMPROVEMENT PLAN David Bradley,Acting Deputy City Manager Kevin Chatellier, Co-Acting Director—Budget and Management Services Jonathan Hobbs, Co-Acting Director—Budget and Management Services Amanda Barnes, MMC City Clerk City Manager ' s Revised Budget FY 2020 - 21 RESPONDING TO THE IMPACTS OF COVID-19 Guiding Principles 2 Maintain Current Level of Service with Least Amount of Community/Service Disruption 0.), new initiatives and programs eliminated or delayed Some existing programs delayed Targeted reduction of existing positions Position the Revised Budget for Flexibility Do not recommend budgeting for attrition >- Uncertainty surrounding the short- and long-term economic impacts require budgetary flexibility Guiding Principles (cont'd) 3 Revised budget does not include any major tax increases and maintains tax and fee adjustments shown on p. 76 of the Executive Summary, which include: 0. ERU rate increase of 3. 5 cents a day previously approved by City Council to address recurrent flooding -Two cents reduction in the Sandbridge Special Service District rate Annual increases in recreation center fees Revenue Assumptions 4 Month of Transaction Occurring July August September October November December Sales 75% 80% 85% 90% 95% 100% Hotel 50% 60% 70% 80% 90% 100% Meals 25% 80% 85% 90% 95% 100% . Revised revenue estimates assume impact of COVID-19 will be longer lasting within our local economy Gradual return to "normal" occurring in December General Fund Fund Balance General Fund Fund Balance Policies: General Fund Fund Balance remain between 8-12% of the following year's revenues • Use of Fund Balance is for one time occurrences and not to support on-going needs Estimated General Fund Fund balance as of June 30, 2020 • Originally Proposed FY 2020-21 reflected as 10.30% • Revised Proposed FY 2020-21 projects to be 8.45% (ZtS186Z1Z) $ 17L0`666`v9 $ OZ Ad 01 paaedwoj (SZ9`L6Z`L9)$ 98Z`IZE`8L0`Z $ IO8`ZZ9`St7l`Z $ lelol (6t7S`St78`E) $ E96`I8Z`Z60`Z $ ZZS`LZZ`S60`Z $ J 1 O IIV (E170`Z08) $ S8E`8ZZ`L $ 8ZVOZO`8 $ speaa uo xel (ZZZ`9017) $ E60`SS9`E $ VZZ`Z90`17 $ 1pdeJ laN >Iue9 (SZZ`8ZS`E) $ LOL`SOL`E $ ZE6`EZZ`L $ luawasnW/ (68E`ZEL`SZ)$ 9SE`stI`8S $ St7L`LL8`EL $ sleaw lueanelse (6Z010E9ZZ)$ ES8`LSZ`LZ $ ZL8`LZ816E $ I010H (E8Z`EVCS) $ 617S`68Z`917 $ ZE8`ZEVZS $ 1Od8 (8t'tIEV9) $ 668`6SZ`89 $ L11'16S`69 $ sales IeaauaD (OL8`EgZ`ZZ)$ ZEL`EZZ`8SZ$ 109`L6ti`69T $ AlJadoad Ieuosaad (8907OS1L) $ 059`95V619$ 81S`196`9Z9 $ awls] lead aJuaaamcl ZZ Ad pas!Aa "CZ Ad pasodoad AIieu! !JO 9 sped u Ienueej Revenue Im act by Fund p Originally Proposed FY 21 Revised FY 21 Difference General Fund $ 737,070,021 $ 709,699,196 $(27,370,825) Schools $ 458,949,640 $ 438,551,631 $(20,398,009) TIP Fund $ 41,943,213 $ 29,559,555 $(12,383,658) TAP Fund $ 13,276,751 $ 9,642,000 $ (3,634,751) Sandbridge SSD $ 478,031 $ 478,031 $ - Sandbridge SSD Pay-go $ 4,576,341 $ 2,582,922 $ (1,993,419) Open Space Fund $ 3,398,220 $ 2,145,629 $ (1,252,591) ARP Fund $ 5,187,624 $ 5,133,253 $ (54,371) Parks & Rec Fund $ 43,627,805 $ 43,417,814 $ (209,991) All Other $ 837,104,155 $ 837,104,155 $ - Total $ 2,145,611,801 $ 2,078,314,186 $ (67,297,615) Compared to FY 20 $ 64,999,074 $ (2,298,541) Approaches to Balance Budget 8 ► Due to anticipated loss of $67.3 million in revenue, an equal amount of appropriations must be reduced or replaced by an alternative funding source in order to maintain a balanced budget In order to maintain balanced budget Reductions in some previously approved programs RP. Emphasis on deferring or eliminating new initiatives 0. No compensation increases 100. Reviewing potential use of fund balance to maintain services General Fund Impact Reduction of Current Services io Operating Budget ► 15 Vacant Firefighters (Burton Station) ► 2 Vacant Paramedics (Burton Station) 8 Vacant Police Officers ($3 million ) 2 Vacant ECCS Call takers Executive Assistant in CM Office (30 FTEs) Administrative Support in Budget ,- Human Resources Analyst Vehicle Replacement Program Reduction in Originally Proposed CIP 11 ► Eliminated Year 1 ► 9-063 17th Street Improvements II ► 9-081 Strategic Growth Area Projects ► 3-697 City Software Upgrade/Replacement Plan $ 10 . 6 million ► 2-184 Rural Rd Recurring Flooding, SLR & Resiliency Delayed until FY 2021 -22 k, 3-047 Landfill #2 Phase I Capping 0. 3-135 Fire Apparatus IV New Operating Budget Initiatives 12 Deferred Beyond FY 21 All Hillard-Heintze Recommendations 00- HR Staffing to Centralize Functions Security Office Employee Training $3.4 million Public Safety Training/Exercises Public Safety Building Access Equipment 20 FTEs Disparity Study Recommendations FTE and Contractual Services New CIP Initiatives Deferred or 13 Eliminated Deferred Hillard-Heintze CIP Recommendations 3- 166 Facilities Access Systems $ 2 . 5 million 3- 183 City Security Enhancements Eliminated 4-059 Southern Rivers Water Shed Site Acq . $ 5 .2 million New Operating Budget 14 Initiatives Eliminated ► Human Resources- Registered Nurse ► HR Training Room Renovation ► Enhanced Defibrillator Replacement ► Market Salary Survey $ 1 . 3 million ► Library Supervisor- Oceanfront ► Stormwater- BMP Crew 14 FTEs ► Stormwater- MS4 Water Quality ► Short Term Rental Program Expansion Planning Technician- Customer Service New Operating Budget 15 Initiatives Eliminated (cont'd) � Sandbridge Lifeguard Services (May-Oct) Courtroom Audio Video Upgrade Aquarium Enhancements- Marsh Pavilion $ 1 million Mobile Co-Responder Team Child Protective Case Workers 12 FTEs Urban Forestry/ Landscape Maintenance Court and Sheriff Part-time FTE conversion New Operating Budget 16 Initiatives Eliminated (cont'd) IT FTEs to Support Time Keeping and Scheduling CIP Mail Clerk FTE Finance Payroll Specialist $700 k Homeless Services Analyst and CM Conversion s Historic Homes Marketing and Planning ► Increase to Atlantic Wildfowl and Lifesaving Museum 8 FTEs ► GF Share of Cost for Landfill Grinder Replacement ► Asset Management Software Data Gathering New Operating Budget 17 Initiatives Eliminated (cont'd) ► Commissioner of the Revenue PT FTEs ► Real Estate Assessor Office Appraiser ► Increased Contributions to regional organizations: $350 K ► Virginia Arts Festival ► ci.- STOP Inc. 1 . 8 FTEs ► Hampton Roads Pride ► Eggleston ► African American Cultural Center All Compensation Increases 18 and Programs Eliminated 0. Public Safety Workforce Dev. Program Year 2 ► Supervisor to Midpoint Year 2 ► State Court Clerk's Supplement Year 2 $ 13 .6 million ► Sheriff Pay Parity Year 2 ► Engineer Recruitment and Retention ► 2.5 % Compensation Increase ► Eliminates $5 million attrition/vacancy savings Other Known Revenue 19 Changes Reduction in State revenue for BLD 1 , 2 , 11 Renovation ($ 10 million) Swap revenue source with Public Facility Revenue Bonds State Recordation Tax Revenue loss ($ 1 .9 million ) Offset with reduction in payment to HRT Total Changes in FTEs 20 General Fund Total Reduction : * 30 Existing Vacancies � 55.83 New Positions TIP Fund 7 New Positions Total reduction of 92 .83 FTEs compared to the FY 21 Originally Proposed Budget 2I Impact on Other Funds Originally 22 Proposed FY 21 Revised FY 21 Difference To Balance: Reduction in new initiatives, TIP Fund $ 41,943,213 $ 29,559,555 $(12,383,658) reduction in reserve and replace portion of lost revenue with fund balance. TAP Fund $ 13,276,751 $ 9,642,000 $ (3,634,751) Reduce marketing and advertising contracts. Sandbridge Reduce pay-as-you-go transfer to SSD $ 5,054,372 $ 3,060,953 $ (1,993,419) CIP Project # 8-026 Sandbridge Beach Restoration. Open Space Reduce pay-as-you-go transfer to Fund $ 3,398,220 $ 2,145,629 $ (1,252,591) CIP Project # 4-306 Open Space. ARP Fund $ 5,187,624 $ 5,133,253 $ (54,371) Reduce budgeted reserve. Parks & Rec Fund $ 43,627,805 $ 43,417,814 $ (209,991) Reduce budgeted reserve. Impact on Schools 23 FY 21 revised revenues result in a loss of $20.4 million when compared to revenues shared with Schools in the original FY 21 City Manager's Proposed Budget ›- Working with Schools to better understand the impact of this loss and plan to mitigate these losses Recommend School Board provide reconciled budget at April 28 City Council meeting (%Z'0) (Zf7S'86Z`Z $) 98Z`t71E`8L0`Z $ LZLZZ9`080`Z $ pauigwoj %0'Z 1798'615'8T $ ZSE'90L'9S6 $ 88098Z'8E6 $ slooLPS lewd_ (%WT) (50t'8Z8'OZ $) 17E8`L09'ZZZ'Z $ 6Et9Zt/Zt7l'Z $ Alp ieloi spund %6'Z LLO'6LZ't $ V9Z'ZLZ'LZZ $ L80'866'ZZZ $ asiadaalui Alit (%L'L) (ZEZ'8S6`EI$) 99E'EOS'99Z $ L6ti`95t`08Z $ spun j aatpO AID (%S'Z) (ZSE`1717Z'IT $) b0E'Z88'LZL $ SS9'9L6'8EL $ punk leaauag Alij ZZ Ad pasodoad aueln % a3uaaaJ4ia OZ Ad paldopb' pasinaj i7z 0U119SB8o a� 6uiaOZ �ld � � 9 .�� J Process Moving Forward Further discussion and possible refinement of impact on various funds Particular emphasis and additional analysis required for the following funds: TIP 0- TAP Open Space Sandbridge SSD Schools Process Moving Forward (cont'd) 26 Inquiry into appropriating operating budget one quarter at a time Teacher Contracts Appropriating portion of CIP projects Ongoing interaction with City Council Virtual Public Hearings - April 22 and April 28 � School Board Discussion - April 28 City Manager ' s Revised Budget FY 2020 - 21 RESPONDING TO THE IMPACTS OF COVID-19