HomeMy WebLinkAboutMARCH 8, 2021 SPECIAL SESSION MINUTES QN.,,,
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VIRGINIA BEACH CITY COUNCIL
Virginia Beach, Virginia
March 8, 2021
Mayor Dyer called to order the SPECIAL MEETING of the VIRGINIA BEACH CITY COUNCIL in the
Virginia Beach Convention Center, Suite 5, on Monday, March 8, 2021, at 8:32 A.M. The purpose of this
SPECIAL MEETING is to hold the City Council Retreat.
Council Members Present:
Jessica P. Abbott, Michael F. Berlucchi, Mayor Robert M. Dyer,
Barbara M. Henley,Louis R.Jones,John D.Moss,Aaron R Rouse, Guy
K Tower, Rosemary Wilson, Vice Mayor James L. Wood and Sabrina
D. Wooten
Council Members Absent:
None
2
MAYOR'S CALL FOR
SPECIAL SESSION
ITEM#71368
Mayor Dyer read the Mayor's Call for the SPECIAL MEETING:
"March 4, 2021
HONORABLE MEMBERS OF CITY COUNCIL
In accordance with the Virginia Beach City Code Section 2-21, and by the authority vested in me
as Mayor of the City of Virginia Beach, I hereby call for a SPECIAL MEETING of the VIRGINLA
BEACH CITY COUNCIL Monday,March 8, 2021, 8:30 A.M. and Tuesday,March 9,2021, 8:30 A.M.,
at the Virginia Beach Convention Center, 100019`h Street,Suite 5.
The purpose of this SPECIAL MEETING is to hold the City Council Retreat.
Also, on March 9, 2021, the City Council may convene into Closed Session, as permitted by law.
Should the City Council convene into Closed Session, the City Council will reconvene, certify the Closed
Session, and then proceed with the Retreat.
The City Council and a limited number of required staff members will meet in person at
the Convention Center, with limited, socially distanced citizen seating in Suite 5. Overflow
seating will be available in Suite 4, where citizens may view the retreat.
Sincerely,
7`144,5#Vic/
Robert M. Dyer
Mayor
Cc: City Manager
City Attorney
City Clerk
Deputy City Managers
Communications Office"
s City of Virginia Scorch
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VBgo,.com
Robert M."Bobby'Dyer MUNICIPAL CENTER
MAYOR BUILDING 1
2401 COURTHOUSE DRIVE
March 4, 2021 VIRGINIA BEACH.VIRGINIA 23456-9000
(757)385-4581
CELL(757)749-4659
buyer@vbgov.com
HONORABLE MEMBERS OF CITY COUNCIL
In accordance with the Virginia Beach City Code Section 2-21, and by the authority
vested in me as Mayor of the City of Virginia Beach, I hereby call for a SPECIAL
MEETING of the VIRGINIA BEACH CITY COUNCIL Monday, Marc!: 8, 2021, 8:30
A.M. and Tuesday,March 9,2021, 8:30A.M.,at the Virginia Beach Convention Center,
100019'h Street,Suite S.
The purpose of this SPECIAL MEETING is to hold the City Council Retreat.
Also, on March 9, 2021, the City Council may convene into Closed Session, as
permitted by law. Should the City Council convene into Closed Session, the City Council will
reconvene, certf the Closed Session, and then proceed with the Retreat.
The City Council and a limited number of required staff members will meet in
person at the Convention Center, with limited, socially distanced citizen seating in Suite
S. Overflow seating will be available in Suite 4, where citizens may view the retreat.
Sincerely,
Robert M. Dyer
Mayor
Cc: City Manager
City Attorney
City Clerk
Deputy City Managers
Communications Office
3
ITEM#71369
8:32 A.M.
Mayor Dyer welcomed everyone and advised the following:
• "There will be a live stream of the discussion patched into the next room over for the
public and staff present. The meeting is not being recorded or televised
• Portions of Day 2 may need to be done in closed session. Closed session items will not
be live streamed into the next room
• The STIR team will be next door capturing key points of the discussion for us and Neva
White will be here taking flip chart notes for us here in the room
• We have a lot of discussion points today. I will work to ensure everyone has an
opportunity to opine on each item, so staff can get a sense of our collective input
• Let's have truthful engagement. Remember what staff is presenting is a recommendation
for our consideration. It is not set in stone—be prepared to propose a constructive
solution if you disagree
• If something you wanted to discuss is not on the agenda, know it is not that the issue is
being avoided. If it is missing, it is solely due to time limitations which caused us to
prioritize certain items. The Vice-Mayor, City Manager and I are working to
accommodate all the request for briefing in the forthcoming meetings and workshops
since we are now back in person. "
4
ITEM#71370
8:37A.M
Mayor Dyer turned the meeting over to City Manager Duhaney. City Manager Duhaney welcomed
everyone and provided the format for today's presentations. City Manager Duhaney also introduced
Letitia Shelton, the new Finance Director.
City Manager Duhaney opened the presentation for the Bond Referendum at 8:56 A.M. Various other
staff presented portions of the presentation, attached hereto, and made a part of the record, with City
Manager Duhaney finishing up the presentation.
City Council took a brief break 10:12—10:30 A.M.
Mayor Dyer RECONVENED the City Council Retreat and opened the floor for City Council Discussion.
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March 8, 2021
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Tier 1 and Tier 2F1 t
s
As initial
In progress and higher referendum debt is Second phases of
priority due to location retired, bonding Tier 1 projects or
in areas at high-risk authority can be currently less defined
forused to address
street and
Tier 2 projects
structural flooding
Tier 1 Flood Control Projects
Windsor Woods, Princess Anne Plaza & The Lakes Estimated Total Additional Funding
Project Cost Needed to Complete
Princess Anne Plaza Golf Course Conversion $83,600,000 $41 ,285,750
Princess Anne Plaza North London Bridge Creek Pump Station $68,900,000 $16,023,700
The Lakes - Flood Barriers $3,600,000 $3,600,000
The Lakes - Holland Road Gate $8,507,000 $4,548,000
Windsor Woods Flood Barriers $14,000,000 $14,000,000
Windsor Woods Pump Station $40,250,000 $8,105,050
Windsor Woods - Thalia Creek/Lake Trashmore Improvements $5,200,000 $5,200,000
Total $224,057,000 $92,762,500
Tier 1 Flood Control Projects
Central Beach District Estimated Total Additional Funding
Project Cost Needed to Complete
Central Beach District - 24th Street Culvert $5,200,000 $5,100,000
Central Beach District Drainage Improvements $92,800,000 $92,000,000
Total $98,000,000 $97,100,000
Eastern Shore Drive Phase I Estimated Total Additional Funding
Project Cost Needed to Complete
Eastern Shore Drive - Elevate Lynnhaven Drive $3,600,000 $3,600,000
Eastern Shore Drive - Phase I, Section 1 F Improvements $1 ,560,000 $1 ,560,000
Eastern Shore Drive - Phase I, Section 1G Improvements $940,000 $940,000
Eastern Shore Drive - Poinciana Pump Station $8,200,000 $8,200,000
Total $14,300,000 $14,300,000
8
Tier 1 Flood Control Projects
Newly Identified Projects — Lake Bradford/Chubb Lake Area Estimated Total Additional Funding
Project Cost Needed to Complete
Chubb Lake / Lake Bradford Outfall $78,200,000 $78,200,000
Church Point / Thoroughgood BMP and Conveyance
Improvements $35,900,000 $35,900,000
Total $1 14,100,000 $114,100,uu0
Newly Identified Projects from Linkhorn Bay Master Plan Estimated Total Additional Funding
Project Cost Needed to Complete
First Colonial Road & Oceana Boulevard
Drainage Improvements $2,325,000 $2,325,000
Seatack Neighborhood Drainage Improvements $2,400,000 $2,400,000
Total $4,725,000 $4,725,000
9
Tier 1 Flood Control Projects
Southern Watershed Estimated Total Additional Funding
Project Cost Needed to Complete
West Neck Creek Bridge City-Wide
SLR Strategy $69,000,000 $69,000,000
Stormwater Green Infrastructure $40,000,000 $39,175,000
Pungo Ferry Road Improvements $16,120,000 $16,120,000
Sandbridge/New Bridge Intersection Improvements $7,990,000 $7,990,000
Total $133,110,000 $132,285,000
Total Bond Referendum Tier 1 Flood Control Projects $588,292,000 $455,272,500
10
Summary Tier 1 Project Benefits
• Windsor Woods, Princess Anne Plaza & The Lakes
✓ 7.6 miles Street flooding reduced for the 10-year design storm
✓ 853 Structures protected from flooding for the 100-year storm event
• Central Beach District
✓ Protect one of the City's largest economic drivers - Tourism
✓ Taxable parcels in the resort area represent 7.6% of the total Citywide assessment base
• Eastern Shore Drive Phase
Lynnhaven Colony Park Pump Station, Lynnhaven Drive Pump Station, Elevate Lynnhaven Drive,
Section 1 F Improvements, Section 1 G Improvements
✓ 551 homes, 62 businesses and 1 public property protected from flooding for the
100-year coastal storm
- Poinciana Pump Station
✓ 141 homes and 1,800 linear feet of street protected from flooding for the 10-year coastal
storm up to 4.5-ft
11
Summary Tier 1 Project Benefits (continued)
• Lake Bradford/Chubb Lake Area
✓ Vital corridors remain accessible for evacuation during large storm events
✓ 47 Structures protected from flooding for the100-year storm event
✓ 2 miles of street flooding reduced for the 10-year storm event
Linkhorn Bay Master Plan Projects
- First Colonial Road & Oceana Boulevard Drainage Improvements
✓ Reduces flooding for the 100-year storm event along First Colonial
Rd/Oceana Blvd to maintain access to NAS Oceana
Seatack Neighborhood Drainage Improvements
• Eliminates Structural flooding for the 100-year storm event
12
Summary Tier 1 Project Benefits (continued)
■ Southern Watershed
- West Neck Creek Bridge City-Wide SLR Strategy
✓ Block floodwater from North Landing River and West Neck Creek to
protect properties north of West Neck Road
Stormwater Green Infrastructure - Marsh Restoration Project
in Back Bay
✓ Dissipate waves and delay onset of flooding in Back Bay
- Pungo Ferry Road Improvements
✓ 2 miles of street flooding reduced for the 100-year storm event
- Sandbridge/New Bridge Intersection Improvements
✓ Remove roadway from the 100-year floodplain
13
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Tier 2 Flood Control Projects
Estimated Total
Major Flood Control Projects - Subsequent Phases Project
Costs/Funding
Needed
Eastern Shore Drive Drainage — Phase II $20,000,000
Princess Anne Plaza Little League Ballfields Relocation $3,800,000
Princess Anne Plaza Northgate Ballfields Conversion $6,200,000
Princess Anne Plaza Drainage Improvements Phase II — Storm Drainpipe Projects $35,400,000
The Lakes Drainage Improvements Phase II — Storm Drainpipe Projects $5,700,000
Windsor Woods Drainage Improvements Phase II — Storm Drainpipe Projects $58,860,000
Total $129,960,000
18
Tier 2 Flood Control Projects
Lake Bradford/Chubb Lake Area - Additional Projects Estimated Total Additional Funding
Project Cost Needed to Complete
Bradford Pond Outfall $35,100,000 $35,100,000
Hollis Rd and Shore Drive Drainage Improvements $26,300,000 $26,300,000
Lake Bradford/Chubb Lake $32,000,000 $21 ,159,000
Northampton Blvd Drainage Improvements $10,200,000 $10,200,000
Total $103,600,000 $92,759,000
LinkhornEstimated Total Additional Funding
Bay - Additional Projects
Project Cost Needed to Complete
Eastern Beechwood Gardens Drainage Improvements $10,630,000 $10,630,000
Western Oceana Gardens Drainage Improvements $14,520,000 $14,520,000
Total $25,150,000 $25,150,000
19
Tier 2 Flood Control Projects
Unidentified Projects Resulting from Watershed Analyses Estimated Total Additional Funding
(ESTIMATED COSTS) Project Cost Needed to Complete
Atlantic Ocean Watershed Stormwater Projects $7,255,000 $6,755,000
Elizabeth River Watershed Stormwater Projects $12,800,000 $11 ,435,000
Little Creek Watershed Stormwater Projects $8,600,000 $7,600,000
Lynnhaven River Watershed Stormwater Projects $29,800,000 $28,020,000
Southern Rivers Watershed Stormwater Projects $15,900,000 $8,700,000
Total $74,355,000 $62,510,000
Total Tier 2 Flood Control Projects $333,065,000 $310,379,000
20
Flood Control Staffing Requirements
Additional resources needed :
• 6 Engineers
• 4 Construction Inspectors
• 2 Right of Way Agents
• 4 Contracts Specialists/Administrative Technicians
FY 2023 FY 2024 FY 2025 FY 2026 FY 2027
$1 .50M $1 .40M $1 .43M $1 .49M $1 .52M
21
Operations and Maintenance
Existing Iofrastructure Maintenance Costs
Additional
Current Current Desired Fundingil
Program Funding/ Cycle Cycle Required for 95 yr 50 yr 20yr 15yr 10yr 8yr 5
Primary System * - - - - - 1 $10.5 -
Infrastructure Improvements $2.27M 12 yr. 8 yr. $3.4M $1.OM $2.6M M
Canal Program $500K 95 yr. 25 yr. $1.5M 1 $500K $1.5M - $2.8M - $4.8M - - -
BMP Maintenance $1.0M 25 yr. 20 yr. $200K - - v $200K - - - - - -
Enhanced Neighborhood ✓ - -
$17.2 $30.7
Rehabilitation $1.2M >90 yr. 15 yr. $8.5M $400K $4.0 M $8.5M - $10.9 M M M
Oceanfront Facilities
Maintenance $1.65M 5 yr. 2 yr. $350K - - - - - - - - ✓ $350K
Stormwater Pump Stations $1.25M 15 yr. 15 yr. - - - - - / - - - - -
Lake Management $4.95M 95 yr. 50 yr. *$3.9M ✓ $2.3M - - - - - - - -
SW Infrastructure $5.75M „ N/A *$750K - - - - - - - - - -
Rehabilitation
*Accounts for FY 22—FY 27 Maintenance Funding Reductions
CIP Total $18.57M Funding Need *$18.6M Due to ERU Reduction
Accelerated Existing Maintenance Cos°tom
Current Desired Additional Funding Service Associated
Maintenance Maintenance Required Pe FYTo with Additional
Achieve Accelerated
Cycle Cycle Maintenance Cycle Funding
Clearing Ditches and
Other Primary System 12 Yr. 8 Yr. $3,400,000 11 miles/Yr.
Improvements
Canal Program 95 Yr. 25 Yr. $1,500,000 1.5 miles/Yr.
BMP Maintenance 25 Yr. 20 Yr. $200,000 20 facilities/Yr.
SW Infrastructure Rehab 60 Yr. 15 Yr. $750,000
Enhanced Neighborhood 16
60 Yr. 15 Yr. $8,500,000
Rehabilitation neighborhoods/Yr.
Oceanfront Facilities 5 Yr. 2 Yr. $350,000 140 repairs/Yr.
Maintenance
Lake Management 95 Yr. 50 Yr. $3,900,000 8 lakes/Yr.
Tota I $18,600,000
Maintenance Costs - New Infrastruturt
$9 . 35MIYR
- Ashville Park
- North London Bridge - Central Resort
- Sherwood Lakes - Culvert Improvements
- Windsor Woods Pump Windsor Woods
Station & Tide Gate - Ashville Park - College Park/Level Green
- Cape Story Tide Gates - North London Bridge - The Lakes
- Lynnhaven Colony - Sherwood Lakes
- Poinciana - Windsor Woods Pump14
_ Windsor Woods
Station and Tide Gate
Cape Story Tide Gate` -
College Park/Level Green
- Lynnhaven Colony - The Lakes
- Eastern Shore Dr. Drainage
Funding Scenarios
and Debt Implications
Currently Approved Plan
3.5¢ annual Stormwater Equivalent Residential Unit (ERU ) fee
increase through FY 2026
FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026
49.3¢ 52.8¢ 56.3¢ 59.8¢ 63.3¢ 66.8¢
2.5¢ of Real Estate tax dedicated to Stormwater Operations in
General Fund
Funds $410.4 million Capital Improvement Plan (FY 2022 -27)
2
Debt Metrics
Metric Policy
Annual Debt Service to General No greater than 10%
Government Expenditures
Net Debt to Estimated Full Value of No greater than 3.5°/0
Taxable Property
Net Debt Per Capita No greater than $3,000
Net Debt Per Capita to Per Capita No greater than 6.5%
Personal Income
28
Debt Metric Options and Impacts
'rips metric:
Interest Rate Real Interest Rate Real Estate ratio of debt
Year Estate Tax Amount 10-Year Tax service to
1 .7% 3.2 0.6% 5.1 gen govt
expenditures
2.5% 3.5 $455M 2.0% 5.5 (10%)
3.5% 3.9 3.0% 5.8
Range is ° 0.6% 4.0 Range is
1 .8 - 3.9 1 .7 /0 2.5 2.9 - 5.8
(diff: $55.23 2.5% 2.7 $355M 2.0% 4.3 (diff: $76.27
from lowest 3.5% 3.0 3.0% 4.6from lowest
to highest) to highest)
1 .7% 1 .8 0.6% 2.9
2.5% 2.0 $255M 2.0% 3.1
3.5% 2.2 3.0% 3.3
29
Real Estate Tax Dedication
20 Year Bonds 1 0 Year Bonds
Debt Debt + Debt Debt S Debe + Debt
Service
Service Existing Service + Service Existing Service +
+Staffing O&M All O&M +Staffing O&M All O&M
$455.3M Referendum Debt Service 3.9¢ 3.9¢ 3.9¢ 6.0¢ 6.0¢ 6.0¢
Additional Resources to Support
Program 0.2¢ 0.2¢ 0.2¢ 0.2¢ 0.2¢ 0.2¢
$18.6M O&M - Existing Infrastructure 2.6¢ 2.6¢ 2.6¢ 2.6¢
$9.35M O&M - New Infrastructure 1 .3¢ 1 .3¢
Total Real Estate Dedication Needed 4.1¢ 6.7¢ 8.0¢ 6.2¢ 8.8¢ 10.1¢
Note: This is in addition to existing 2.5¢ Stormwater Real Estate dedication as well as the 3.5¢
yearly ERU increase, approved by City Council, through FY 2026. Assumed interest rate of 3.5%. 30
Impact on Debt Metrics
FY FY FY FY FY FY FY FY
2023 2024 2025 2026 2027 2028 2029 2030
Net Debt to Estimated Full 1 .9% 1 .9% 1 .9% 1 .8% 1 .7% 1 .6% 1 .5% 1 .4%
Value of Taxable Property
Net Debt Per Capita $2757 $2810 $2813 $2811 $2717 $2628 $2542 $2458
Net Debt Per Capita to Per 4.4% 4.4% 4.3% 4.2% 4.0% 3.8% 3.6% 3.4%
Capita Personal Income
20 Year Term Annual Debt Service 8.9% 8.9% 9.0% 8.9% 9.1 % 9.2% 9.1 % 8.9%
to General Govt Expenditures
10 Year Term Annual Debt Service 9.1% 9.3% 9.5% 9.5% 9.8% 10.1 % 9.9% 9.7%
to General Govt Expenditures
Baseline Assumptions
• Currently Adopted CIP Program
• Referendum related Bond Issuances every year for six years
• 3.5% interest rate
• 4.1 ¢ or 6.2¢ Real Estate Tax increase 31
Sensitivity
FY FY FY FY FY FY FY FY
2023 2024 2025 2026 2027 2028 2029 2030
Baseline 20 Yr Term 8.9% 8.9% 9.0% 8.9% 9.1 % 9.2% 9.1 % 8.9%
FY 25 Additional $50M 8.9% 8.9% 9.2% 9.1 % 9.3% 9.4% 9.3% 9.1 %
FY 25 Additional $100M 8.9% 8.9% 9.4% 9.3% 9.5% 9.6% 9.4% 9.3%
Baseline 10 Yr Term 9.1 % 9.3% 9.5% 9.5% 9.8% 10.1 % 9.9% 9.7%
FY 25 Additional $50M 9.1 % 9.3% 9.8% 9.8% 10.1 % 10.4% 10.2% 10.0%
FY 25 Additional $100M 9.1 % 9.3% 10.1 % 10.1 % 10.4% 10.7% 10.5% 10.3%
Annual Financial Impact on Taypayers
1 .00 =
2.00 = s 52.60
3.0¢ = $ 78.90° _ A penny of the real estate tax =
a.o¢ _ $10 $26.30 annually
6.0¢ _ $1'= - based on median home
7.0¢ = $184.10 assessment of $267, 600
Pligtr= $236.70
191W$263.00
Referendum Logistics
Council can request a referendum by simple majority (6 votes)
Need wording of referendum question finalized
• November 2021 Referendum must be filed with Circuit Court by
August 13, 2021
• City prohibited from promoting passage of bonds;
information and educational material only
• General Obligation (GO) Bonds require 8 votes for authorization
after a referendum passes
Follow up ordinances (e.g., appropriation and revenue) will be
necessary to implement the program
Educational Materials Options
Depending on Funding
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Stormwater
Citizen surve to au e information needs Y gauge =g4• - .�F- REFERENDUM
171 Informational briefings (virtual, in person)
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PROJECTS BY DISTRICT .. -
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35
Closing Thoughts
Some benefits to sea level rise; does not address major
adaptation strategies
Retired debt is included in Charter bond calculation; could
be reserved/utilized for future Tier 2 projects and/or sea
level rise
Consideration of debt metrics and bond issuances
Councilursue iscussionNovember anGuidance
■ Whether to p referendum in
• Projects to be included
Financing choices and considerations:
Assumed amount of referendum
Assumed term of bonds
Assumed issuances
Assumed interest rate
Real estate tax dedication amount
Next round of federal COVID-19 stimulus
Debt metric thresholds
Threats to a referendum's success
��4GtNIA•BF,��,I$'
r ow 5
4 1� ,:• Stormwater
yR�s :._. 0�6
OF OUR NASIO45
City Council Retreat Bond
March 8, 2021
Referendum
5
ITEM#71371
11:00 A.M
City Manager Duhaney turned the meeting over to Janet Lee, Public Resource Advisory Group, to begin
her presentation of Stormwater Bonds Referendum Discussion, attached hereto and made a part of the
record.
City of Virginia Beach
Stormwater Bonds
Referendum Discussion
City Council Retreat
March 8, 2021
Public Resources Advisory Group
March 8, 2021
Agenda
Discussion Topics
• General Rating Agency Criteria
• Rating Agency Assessment of Debt and Other Liabilities
• Rating Agency Commentary on Virginia Beach and Sea Level Rise
• Virginia Beach Debt Management Policies
• Virginia Beach Debt Planning
• Spend Down Rules and Arbitrage
Rating Agencies Assess Four Broad Factors
Economy Finances
and Tax Base
Management Debt and
Other Liabilities
Virginia Beach G.O. Ratings
Moody's: Aaa
S&P: AAA
Fitch: AAA
3
Virginia Beach's Credit Strengths and Challenges
Factors That Could Lead to
Credit Strengths Credit Challenges Downgrade
Moody's • Sizeable,growing&diverse tax • Above-average exposure to cuts in • Deterioration of fund balance or
June 2, base benefiting from stabilizing federal defense spending liquidity resulting in reduced
2020 institutional presence • Elevated exposure to the impacts of financial flexibility
• Comprehensive financial policies sea level rise and recurring • Significant contraction in tax base
and conservative budgeting flooding and weakened resident income
practices levels
• Manageable overall fixed cost • Material increase in debt burden
burden
S&P • Very strong economy • Ongoing challenges related to • Significant draw on reserves due to
May 27, • Very strong management,with rising sea levels,flooding,and pressure from the current
2020 strong financial policies and other risks present in coastal recession or increased capital
practices communities projects,decreasing below formal
• Very strong budgetary flexibility • Economy and budgetary policies, with no clear and timely
• Very strong liquidity performance is vulnerable to the plan to restore reserves
• Strong debt and contingent liability effects of social distancing and
profile other decisions made to protect the
• Very strong institutional health and safety of the community
framework score from the spread of COVID-19
Fitch • Management's demonstrated • Moderate increase in debt service • A sustained increase in the city's
June 2, ability to control expenditures and from 6-year CIP long-term liability burden to well
2020 achieve balanced results from • Substantial cost of sea level rise in excess of 10%of personal
operations program income levels
• History of sound financial • A sustained decline in unrestricted
management,high reserves and a general fund reserve balance to
superior level of inherent budget levels that result in weaker gap-
flexibility in the form of unlimited closing capacity with an 4
taxing authority and solid expectation for slow recovery
expenditure flexibility
Moody's: "Virginia Beach's Debt Burden is Manageable"
Rating Agencies Use Their Own Debt and Liability Metrics
■ For Moody's, debt and pensions comprise 20% of a municipality's overall rating score. The table below
summarizes the debt factors used by Moody's.
Rating Factor / Weight Aaa Aa A Baa
Net Direct Debt/ < 0.75% 0.75% - 1.75% 1.75% - 4% 4% - 10%
Full Value (5%)
Net Direct Debt/
< 0.33x 0.33x - 0.67x 0.67x - 3x 3x - 5x
Operating Revenues (5%)
3-Year Avg of Moody's Net Pension
< 0.9% 0.9% - 2.1% 2.1% - 4.8% 4.8% - 12%)
Liability/ Full Value (5%)
3-Year Avg of Moody's Net Pension
< 0.4x 0.4x - 0.8x 0.8x - 3.6x 3.6x - 6x
Liability/ Operating Revenues (5%)
■ Moody's also looks at other factors and may make adjustments (up or down) to its debt/liability scoring. These other
factors include:
➢ Very high or low debt service relative to budget
➢ Very high or low overall debt burden (including overlapping debt)
➢ Heavy capital needs implying future debt increases
➢ Rapidity of debt repayment within 10 years
➢ High OPEB liability
S&P: "Virginia Beach's Debt and Contingent Liability Profile is Strong."
Rating Agencies Use Their Own Debt and Liability Metrics
■ For S&P, debt and liabilities carry a 10%weight in determining a municipality's overall rating score.
■ In assessing a municipality's debt and contingent liability S&P looks at the combination of two measures:
> Debt service as a percentage of total governmental funds expenditures, and
➢ Net direct debt as a percentage of total governmental funds revenue.
> The two ratios are combined to determine an initial score for the debt and contingent liabilities:
Net Direct Debt As % of Total Governmental Funds Revenue
Total Governmental Funds Debt
Service as % of Total
Governmental Funds Expenditures
1 2 3 4 5
2 3 4 4 5
3 4 5 5 5
4 4 5 5 5
4 5 5 5 5
I =very strong,2=strong,3=adequate,4=weak,5=very weak
S&P also looks at other factors that may have a positive or negative impact on the initial score:
Positive Impact(Improve score by 1 point each) Negative Impact(Worsen score by 1 or 2 points each)
• Overall net debt as a percentage of market value below • Significant medium-term debt plans produce a higher initial
3% score when included
• Overall rapid annual debt amortization with more than • Overall net debt as a percentage of market value exceeding
65%coming due in 10 years 10%
• Unfunded pension or OPEB obligations that represent 6
significant budget pressure
Fitch: "Expects the City's Liability Burden to Remain Fairly Stable"
Rating Agencies Use Their Own Debt and Liability Metrics
• Fitch does not assign a specific weights to the key rating drivers but does outline general expectations for a
given rating category and assesses the following ratios:
LONG-TERM LIABILITY BURDEN:
Overall Local Government Debt+ Fitch's Adjusted Direct Unfunded Pension Liability
Personal Income
Elevated but Still in •
I,i �hility Ilurden Low Moderate Moderate Range High
Ratio Level Liabilities Less than Liabilities Less than Liabilities Less than Liabilities Less
10%of Personal 20%of Personal 40%of Personal than 60%of
Income Income Income Personal Income
CARRYING COST:
Governmental Debt Service + Pension ADC + OPEB Actual Payment
Governmental Expenditures
Elevated but Still in
Carrying Cost Low Moderate Moderate Range High
Ratio Level Fixed Costs Less than Fixed Costs Less than Fixed Costs Less Fixed Costs Less
10%of Expenditures 20%of Expenditures than 25% of than 30% of 7
Expenditures Expenditures
Rating Agency Commentary on Sea Level Rise
Moody's, "Sea Level Rise Increases Credit Risk for Coastal States and Local Governments" (Sept. 2020) \`
• Sea level rise is leading to more frequent coastal flooding, signaling a need for state and local governments to increase funding to
manage risks. Sea level rise adaptation efforts are credit positive.
• The financial capacity to take on debt, willingness and ability to raise taxes, and implementation of smart growth strategies will be
critical to protecting vulnerable local economies and property values.
• The states,counties and cities best positioned to leverage their resources for adaptation to more frequent flooding have sizable and
diverse tax bases,moderate leverage,policies that encourage smart growth and a willingness to coordinate with other local and state
governments on large-scale projects and regional policies.
• How governments manage competing spending priorities and maintain reasonable debt levels amid growing exposure to the effects of
sea level rise will be critical to credit quality.
Moody's: "Cities' Heightened Focus on Mitigating Climate Risk is Credit Positive" (Jan.2019)
• Effective climate risk preparation is a credit positive that sheds light on how a city manages infrastructure vulnerabilities, current and
future capital costs, mitigation of potential economic impacts and the risk of population loss resulting from climate change.
• Virginia Beach has a history of strong financial management and adherence to policies to maintain satisfactory reserves,liquidity and
debt levels despite significant capital plans to mitigate environmental risk primarily associated with flooding.
S&P:"Climate Resilience Can Protect Ratings From Sea-Level Rise&Threats To Coastal Infrastructure" (Oct.2015)
• Planning is Key. Fighting that threat will not be easy all the time, nor cheap. But preparing for it has already started, and that's all to
the good, in our view,because those who are structuring their operations and capital planning without climate change in mind are
risking serious losses in the decades ahead.
• To mitigate losses,local and state authorities need to determine what the necessary infrastructure is, investigate how to pay for it, and
establish contingency plans for "worst-case"scenarios, all while adequate time to do so remains. Entities taking steps now to protect 8
credit quality long-term will not necessarily incur damage to current credit ratings.
Rating Agency Commentary on Sea Level Rise
Moody's Credit Opinion (June 2, 2020)
• City management takes a proactive approach to managing environmental risks including undergoing a comprehensive sea
level rise study evaluating four major watersheds.
• The city's CIP includes stormwater infrastructure projects to address flooding issues in areas of the city experiencing recurrent
flooding.
• Additionally, new funding sources have been secured or identified to help combat recurring flooding including 2.5 cents on the
Real Estate tax rate and 54%increase in the stormwater fees through fiscal 2025.
S&P Credit Opinion (May 27, 2020)
• Virginia Beach recognizes ongoing challenges related to rising sea levels,flooding, and other risks present in coastal
communities, and it dedicates a growing portion of its additional capital plans to address these issues.
• We will continue to monitor the rating,because we believe management will likely maintain its very strong budgetary flexibility
and liquidity.
• Environmental risks are somewhat elevated for the city due to its exposure to rising sea levels. Virginia Beach proactively
manages these risks and includes ongoing remediation efforts as part of its rolling capital projects.
• We view Virginia Beach's governance risks as being in line with the sector and it has historically maintained a strong
management and policy framework to respond to developing risks.
Fitch Credit Opinion (June 2, 2020)
• The city is engaged in a comprehensive study on the impacts of sea level rise(SLR). As such, it has dedicated roughly $403
million in the current CIP for improving flood control and protection via various stormwater improvements, dredging and
beach restoration. The CIP includes assumptions of$294 million in stormwater revenue bonds to support these initiatives.
• Although the cost of the SLR program may be substantial, it will likely be financed and developed over an extensive period of
time, allowing the city the ability to balance this investment against other general governmental needs and its available s
economic resources.
Virginia Beach Debt Management Policy
Debt Management Policy
• Rating agencies use their own debt and liability metrics,which incorporate pension and OPEB liabilities, in their assessment.
• The rating agencies positively view the City's formal debt policies and see the policies as a management tool used to keep debt at
prudent levels.
• If the City breaches its debt policies, discuss with rating agencies:
➢ Cause of the breach(financing of an essential project or projects);
➢ Ratios are not materially greater than the debt policy;
> Breach is temporary and not sustained at significantly higher levels with a plan to return to compliance.
> Rating agencies likely would not take any rating action based on the breach alone.
• The City can evaluate adjusting its debt policies:
> Certain debt ratios carry more weight(Debt Service to General Government Expenditures) and increasing the debt limit
could raise concerns from rating analysts.
➢ Other ratios are less critical(Debt per Capita)and a reasonable increase to the debt limit would not raise any concerns.
• The City will need to assess its projected debt ratio levels to preserve flexibility and debt capacity to be able to manage future
unknowns.
• The City will also need to balance this investment with economic development projects and other general governmental needs.
➢ Use its debt policies to help prioritize competing projects.
➢ Calculate debt ratios under various combination of projects and interest rate sensitivities.
to
Virginia Beach Debt Planning
Debt Structuring
• For planning purposes, understand the impact of additional debt on the City's debt ratios.
• Issuance schedule of$455.3 million Stormwater Bonds
> Consider arbitrage spend down requirements
• Term of debt: 10 year vs. 20 year
> Term of the debt typically is not a rating agency issue.
•:• Except in the calculation of Rapidity of Repayment, which can improve an issuer's debt score.
❖ Virginia Beach's rapidity of repayment in 10 years is over 70%; there is no need to accelerate further.
➢ There is no market preference for 10-year or 20-year debt,both are acceptable with 20-year debt more typical.
❖ Lower cost of funds with 10-year debt vs. 20-year debt.
❖ In current market with relatively lower interest rates, can lock in lower cost of funds.
> Annual debt service will be greater on 10-year debt,but total debt service over the life of the bonds will be less,when
compared to 20-year debt.
❖ Greater annual debt service with 10-year debt will result in higher Debt Service to Expenditures ratio.
•:• Greater annual debt service with 10-year debt will require greater real estate tax dedication.
•:• Assess debt affordability from City's perspective and taxpayer rate perspective.
Compare to tax rates in surrounding jurisdictions.
• Implications of Rating Downgrade from AAA vs. AA+
➢ Loss of prestige of triple-triple-A ratings.
> Increased interest cost.
> Average interest rate and debt service for $455.3 million Stormwater Referendum bonds at current market rates:
Aaa AAA AAARatin:s Aa1 AA+ AA+Ratin:s Difference
Average Annual Debt Total Debt Average Annual Debt Total Debt Average Annual Debt Total Debt
Rate Service Service Rate Service Service Rate Service Service
0.95% 31,948,383 479,225,750 1.09% 32,186,617 482,799,250 0.14% 238,233 3,573,500 11
2.07% 22 407 138 560 178 450 2.21% 22 704 304 567 607 600 0.14% 297 166 7 429 150
Spend Down Rules for Tax-Exempt Bond Proceeds
Three-Year Temporary Period
• IRS regulations generally require that an issuer restrict its investment of tax-exempt bond proceeds to a yield that is not
materially higher than the yield on the bonds.
• Three-year temporary period allowed for proceeds of tax-exempt bonds during which investment yield is not restricted:
6 Months 3 Years 5 Years
Reasonably expect to spend Reasonably expect to spend Reasonably expect to spend
5% of Bond Proceeds 85% of Bond Proceeds 100% of Bond Proceeds
• Five-year temporary period could apply for certain capital projects.
• If issuer does not meet the spend down requirements, the issuer must more actively monitor and manage its investment yields
and may need to rebate any earnings above the yield on the bonds.
Rebate Exceptions
• An issuer does not need to rebate investment earnings that are in excess of what would have been earned if the issuer had invested
proceeds at the bond yield, if it can meet one of the following spending exceptions:
Spending Exception 6 Months 12 Months 18 Months 24 Months
6-Month I All Gross Proceeds 100%
18-Month I All New Money 15% 60% 100%
24-Month Construction Issues 10% 45% 750A) 100% 12
Questions
6
ITEM#71372
11:25 A.M
Ms. Leisha Pica, Jacobs Engineering, began her presentation for Stormwater Program Assessment
Update, attached hereto, and made a part of the record.
City Council took a brief break 11:45 A.M. —12:02 P.M
Jacobs Chiallengnventing ing today.
Re tomorrow.
City Council Retreat
Stormwater Program - 41
Assessment Update
Leisha Pica, Jacobs Engineering
9 9
Sharma Young, S. Young Consulting
March 8, 2021
7
Our Preliminary Findings
■ Staff Open to Change
■ Master Planning Efforts Provide Excellent Understanding
■ Project Durations Often Dependent on Budget Targets
■ Property Acquisition Causes Project Delays
■ Non-Standardized Tools and Systems Impact Project Management and Reporting
■ Staffing Levels and Vacancies Impact Internal Resource Capacity
■ Opportunities Exist for Optimizing Implementation & Funding Approaches
■ Enhanced Internal & External Reporting Will Be Essential Going Forward
2
Our Recommendations Program
Manager
Regulatory O&M Cycles
StrategyAAP"
owe
Private y
Utilities & Real Estate
3rd Parties
Procurement Master
Strategies Schedule
3
Added Value of an External Program Manager
Oversight & Facilitation Project Controls Functions
Organizational • • • Tools and
Performance
Support , Metrics I'
Risk Management In erg.• & ..:„,_.-r. . 'e'ortii .•
Monitor, Manage, Progress, Issues,
Mitigate /j Next Steps
B.,.
Oversight & Facilitation in Conjunction • Monthly Project
with Program Governance Updates are the
foundation
Coordination Monthly
Meeting with •.
MonthlyPM • Operations staff CIP Mgmt • Supervisors and
.,_ •
. �.M _ _ . . a,: Managers Discuss
Portfolio Monthly
Review Meeting Meeting Variance
••••• Variance Monthly 0'
Meeting
• Major Variances
must be "approved"
Programmatic Infr Planning & by asset owners and
sometimes
Initiatives •••• Regulatory Compliance executive leadership
Workgroups Mtgs Team Mtgs
Enterprise Program Manager (EPM) • Periodic Meetings
between work
groups keep process
Project Management Information System (PMIS) improvement
initiatives moving
5
Project Controls & Program Performance Metrics
'tome Dashboard Performance- Nip Milestones Kf'I Risks Issues SharePotnt- Data- Admm- tro xroo Q 9
Program Performance 4J Performance Over Time Program Costs 0 Percent Complete tJ
•30 0
sew
E 5som
a Hpr Total Budget Planned t>_ EAC
$ CPI nSPI so Earned
IIIIIIIMI
05 099' os1 *, .b SO �— - - $87.6M Budge $86.4M 7485-
`q Forest
t
c�
MINIIIIIIIIIIMM
•Baseirne■Earned•Actual■Can't
Csnamme Cm'A•I•nriarl sinus Mnenceoc* Commons Cove-Is eases Veluar hommenndnq for most 4cfron.s
Project Phase .' fJ Key Performance Indicators (C Protect Cost Summary ,' f)
34
e Lost Time Injury Frequency Rate Change Orders Over Time 25
A
• To
o t5
`
r T. 10
1C a
II of Projects 28.4 33 5
n
01 utanning ■ ,,2 Desagn • 03•t-oecutton Over Budget On Budget !Jotter Budget
•04-Testing S C ernes ssroning■05-Close-out
Out of:'Pelects
t
0
Major Projects ci 0• Project Schedule Summary .' 0
Name Cost Schedule Budget Planning Starts Submittals On Time 25
ENV 002-01 Efeadornd:s Imprnvemenl •• •• $'SM
•
ED-001.04 Sdrool for Special Needs • • 43 5M PeNeratke r'ertx r,lor" 20
ED 002 03 Betr-Lbrary Parking Eut • • 52 0t.t I 15
0K
ENV -01 Stonaast a Tanklant ntor U •• •• 53 5M 'a t0
ENVC^1-0F. Storage Tangy. •• •• 53 5!d 37
ED 002 05 Security System Upgrades • • 5500K ' III I I I I I I I ' , _
81% IN,
6 II
Program Risk Analysis MEDIUM
Work on Private Inadequate 0.1 S k
Property Required Staffing Levels
3 z
0 0
07 Scope Creep &
Project Add Ons
L
•
• •• Identify, Rank &
Prioritize Risks
J
• V Environmental.
m
2 & Property Owne ✓ Safety
a • Lawsuits V Fiscal.
• •
mill V Legal
• Warranties— ✓ Management
( Inadequate
• Requirements in V Technical
• Contracts
ski
CONSEQUENCE Monitor, Manage,
Low Medium High
Mitigate Risk
Program Reporting • PM Reports to
Project Controls
Monthly Executive Report
Reporting supports Capital Program and Financial Update • Monthly
July 31, 2020
project and program Variance Report
decisions to Managers and
Supervisors
0 What project level information sh
during monthly meeting? 6 • Monthly
of Discussion of P ro g ra m
Red Health Projects eparate discuss on fait
a
Projects in nee Management for
Decisions Needed 02 interrupted,BCnisd Executives
awaiting Expre•
Safe,clean waterways
Design Starts 03 Projects startin.
0^ Projects starting cons ruc ion WI in •I Annual
Construction Starts `+ days •
Project Controls List of outstanding needs Reconciliation
Outstanding Actions 05 (Closeout letters,Action Items,etc)
4,msd Report
8
gr
Manageamr
Stormwater Pro Program
Leadership Delivery
Team Team Organizational
Roles with a
Program Program
Governance
Team
Manager
Storm
Water
CIP
9
Organizational Roles - Program Governance Team
Program last
Manager o
Stormwater Program •1 P•
Leadership Delivery
Team Team
Cross Functional Core Team
L'
Prioritization of Projects
Program
Governance Major Project/Program Change
Team Approval
Storm
Water Establish Risk Tolerance and
CIP Select High-Level Mitigation
City Manager Support Strategies
Coordination Among Depts
Leadership Concurrence Set Performance Metrics
10
Organizational Roles - Stormwater Leadership Team
Program n.
Manager
Stormwater Program
Leadership Delivery
Team Team
Public Works
5
411 iv_
j Hiring, Developing,
Program m Managing Internal Staff
Governance
Team
Ensuring Adherence to
isuf
Storm Process Changes
Water Implementation Planning
CIP Phasing Strategies Recommend Funding
Asset Management Opportunities
Resilience Needs (climate)
Apply Lessons Learned Manage Ongoing Planning
Preliminary Project Risk Analyses
11
Organizational Roles - Program Manager
Program
Manager
Stormwater Program
Leadership Delivery
Team Team Transition to City Staff
Project Controls
Program
Governance Document Management
Team
Quality Control Schedules & Budgets
Storm Program Level Budget Real Estate Support
Water Cashflow Forecasting
Progress Reporting permitting Support
CIP Tracking Performance Metrics
Programmatic Support for Permitting Analyze Program Risks and
Programmatic Support for Real Estate
Develop Mitigation Strategies
12
Organizational Roles - Program Delivery Team
Program
Manager
Stormwater Program /n
Leadership Delivery
Team Team
Project Manager
Manage Project Risk
E
Program
Governance Oversee Design and
Team Public Works Construction Vendors
are
Real Estate
Storm Communications Update Schedule and Estimates
Water Procurement
CIP Legal Initiate Change Requests
Budget
Finance Identify Permitting and Real
IT-GIS
Hybrid Internal& External Resources Estate Needs
13
Thank You
Leisha Pica (t.eisha.picajacobs.com)
Sharma Young (sharmasyoungconsut.ting.com)
Jacobs Challenging today. in
o tr f co
Reinventing tomorrow.
7
ITEM#71373
12:02 P.M
Mayor Dyer RECONVENED the City Council Retreat and turned the meeting over to City Manager
Duhaney. City Manager Duhaney introduced Harry Kangis, The One Page Solutions Team, to begin the
initial discussion on Strategic Planning/OGSP.
City Council took a lunch break 12:19 P.M
Mayor Dyer RECONVENED the Retreat at 1:05 P.M and continued the discussion on the Strategic
Planning/OGSP. Mr. Kangis began his presentation of The One Page Strategic Plan, attached hereto
and made a part of the record
City Council took a brief break 2:23—2:37 P.M
Mayor Dyer RECONVENED the City Council Retreat at 2:37 P.M and continued the discussion on the
Strategic Planning/OGSP
:A• �:• ' •
• 0��4- �
R '4- UUR NtiCW
The one Page
City Council Retreat
March 8 2021 Strategic Plan
Harry Kangis
The One Page Solutions Team
Co-Founder and General Manager
Ground rules for today:
• Please turn cell phones on vibrate and take urgent calls outside
• Keep your focus at the table - side conversations and talking over each other slow
progress
• Seek first to understand — all ideas are welcome
• Truthful engagement — be prepared to propose a constructive solution if you disagree
• Surface your remaining reservations now
• Leave the room ready to support the strategic plan with full commitment
Day 1 Agenda
What do we hope to accomplish with this straegic planning 1:30pm - 10 Mins
discussion?
Ground rules, Agenda, Planning process principles 1:40pm - 10 Mins
What is our desired success from the new strategic plan? 1:50pm - 20 Mins
• Mission and Objective
Strategy Reviews
• Strategy #1 — 21st Century Infrastructure 2:10pm - 35 Mins
• Strategy #2 — Safe & Healthy Community 2:45pm - 35 Mins
• Strategy #3 — Growing Economic Opportunities 3:20pm - 40 Mins
• Break 4:00pm - 20 Mins
• Strategy #4 — Thriving Neighborhoods 4:20pm - 35 Mins
• Strategy #5 — Innovative & Sustainable Government 4:55pm - 35 Mins
Playing to Win: How Strategy Really Works
by A.G. Laflev and Roger Martin
ys o The Five Essential Questions at the Heart of
PLAYIh
NOW SIRAYfGY
r AfAILYWORRS o Any Winning Strategy:
wiN
..- A.G.LIMEY
ROGER MAMMY o 1. What is your winning aspiration?
02. Where will you play?
.03. How will you win?
04. What capabilities must be in place?
05. What management systems are required?
4
Strategic vs Operating Priorities
Understanding the distinction; tracking both
o Strategic Priorities (Covered by the OGSP documents)
• Focused on building future growth/success
• Require incremental investment in money, time, and mgt. attention
• In most cases, require a good deal of cross-functional collaboration
o Operating Priorities (Tracked separately)
• Focused on delivering current year forecast & mission commitments
• Projects which deliver continuous improvement across functions
• Activity focused on relationships with key stakeholders: owners, customers,
consumers, communities, employees and volunteers
City of Virginia Beach I One Page Strategic Plan®(OGSP®) DRAFT FY 2021-2022
Our Mission: The City of Virginia Beach exists to enhance the economic,educational,social,and physical quality of the
Virginia Beach community and provide sustainable municipal services which are valued by its citizens.
FY 2021-22 OBJECTIVE: STRATEGIES: FY 2022 PLANS: (Owner,Date) [Relative Priority:A,B,C]
"What is success?" "How we will succeed..."
Through continuous innovation,measurement, 1. 21st Century Infrastructure( ) la) Reduce floodinglymaintainand adaptw to sea, level rise()
lb) Proactively our water,wastewater,road,and bridge infrastructure()
and improvement,we will enhance the quality of a)Build a flooding and sea level rise resilient community 1c) Improve transportation options and reduce congestion by working with partners where
life and the City's economic vitality for residents, b)Build a safe,reliable,and accessible multimodal common interests can be maximized()
employees,businesses,and visitors while investing transportation network for all members of the 1d) Evaluate emerging mobility solutions and invest in efficient,user-friendly,safe,and cost-
in sustainable and resilient infrastructure. community effective solutions that get people where they want to go()
GOALS: 2. Safe&Healthy Community( ) 2a) Use data-driven approaches to reduce crime in all neighborhoods()
a)Build a safe and well-prepared for all-hazards community 2b) Provide timely fire,medical,and emergency management response ()
b)Build a community with equitable access to quality social 2c) Continue efforts to prevent the spread COVID-19()
services 2d) Through a combination of supportive housing and comprehensive social services reduce
homelessness()
FY End 6/30 FY21 FY22 FY23 2e) Provide and/or support initiatives that can connect those seeking social services with the
Actual Fcst. Proj. support they need()
3.Growing Economic Opportunities( ) 3a) Continue work towards becoming a year-round coastal destination()
a)Build a City well positioned to compete in the regional, 3b) Cultivate and facilitate investment in strategic industry sectors()
national,and global economy 3c) Facilitate a responsive and proactive business climate ()
b)Build opportunities for Small,Women,and Minority 3d) Increase SWAM business participation on City contracts()
EXAMPLE ONLY (SWAM)Owned Businesses
4. Thriving Neighborhoods( ) 4a) Evolve and update comprehensive plan to balance development with neighborhood
a)Build a community made up of distinct,complementary, character and livability()
Growing Economic Opp. 4b) Ensure the development of a diverse range of housing options that parallels our
#of jobs created 2,400 and diverse neighborhoods
$15.3 b)Build a community with equitable access to quality park demographics and needs
Comm rcenPer it 4c) Provide accessible,diverse,and inclusive parks&recreation and library programs and
Commercial Permits Issued 3,349 and recreational opportunities
c)Build world-class schools and foster lifelong learning amenities()
opportunities 4d) Partner with Schools Division on appropriately funding operation and capital needs()
5.Innovative&Sustainable Government( ) 5a) Establish a culture of continuous improvement that embraces technology and prototyping
a)Build an equitable,ethical,and innovative city to improve processes(I
government that works for all effectively and 5b) Improve our competitiveness to attract,hire,and retain a diverse and skilled workforce()
collaboratively 5c) Demonstrate sound financial stewardship()
5d) Timely,meaningfully,and appropriately engage the community on the matters that
impact them()
6
M3 The City of Virginia Beach -One Page Strategic Plan®(OGSP®) DRAFT FY 2022-2023
Our Mission:The City of Virginia Beach exists to enhance the economic,educational,social,and physical quality of the community and provide
Virginia Beach sustainable municipal services which are valued by its citizens.
FY 2022-23 OBJECTIVE: STRATEGIES:(Captain) 'How' we will Win... FY 2022 PLANS: (Owner,Date) [Relative Priority:A,B,C]
'What' is Winning... 1.210 Century Infrastructure la)Complete all Watershed Master Modeling,develop cost/benefit decision matrix to prioritize project areas,begin
a)Build a flooding and sea level rise resilient community implementing green infrastructure to reduce flood risk...
Through continuous innovation,measurement,and b)Develop a financially sound storm water management Bond 1b) Assess community support for a Bond Ref.to mitigate recurring flooding&storm surge risks to City and execute broad
improvement,we will enhance the quality of life and Referendum that will gamer broad community support communication plan to ensure Referendum passes...
the City's economic vitality for residents,employees, c)Build a safe,reliable,and accessible multimodal 1c) Complete assessment of transportation infrastructure needs&adopt master plan that supports transp.options,reduces
transportation network for all members of the community congestion,&improves safe travel for entire community
businesses,and visitors while investing in sustainable d)Implement technology upgrades for the City and its citizens 1d) Expand the availability of broadband services by leveraging federal programs to ensure every business and
and resilient infrastructure. underserved areas have access to advanced broadband networks
le) Protect/secure/ensure City IT systems/services are capable&available to support Dept.goals by updating IT Data Ctr
w/state-of-the-art secure tech.w/built in disaster recovery
GOALS:(Owner:Melissa Z.) 2a) Take stepsneeded to achieve herd immunitylevels of COVID-19 vaccination in the Cityyear end,clarifywaysto
2.Safe&Healthy Community by
FY End 6130 FY21 FY22 FY23 a)Implement COVID-19 vaccination and recovery plan, prevent reinfection,and speed economic recovery funds and programs for individuals,businesses and non-profits.
Actual Fcst Proj. including stabilization for renters 2b) Develop pro-active plans for all hazards and all threats to the city,not just the ones we happen to be experiencing now
b)Build a sate community that is well-prepared for all-hazards or thinking about now.
c)Modernize the public safety operation via improved 2c) Modernize the public safety operations via improved diversity,accountability,technology,and community problem-
transparency,diversity,accountability,and technology oriented policing
d)Build a community with equitable access to quality social 2d) Provide essential social infrastructure to promote health&support a healthier community
services,especially public health capability 2e)Continuously improve homelessness programs to build service capacity
e)Focus on reducing current homeless populations...
3.Growing Economic Opportunity
a)Build a City well positioned to compete in the reg'I,narl, 3a) Finalize Economic Development Strategy to focus efforts and resources
and global economy for higher paying jobs(shovel-ready 3b) Use updated Economic Development Strategy to build a real estate plan for development of future industrial sites
sites&workforce development) 3c) Partner with VBCPS,the Workforce Council,and local Higher Education providers to expand workforce training
b)Build opportunities for(SWAM)Owned Businesses; programs based on strategic industries
Enable incubators to encourage start-up businesses 3d)Stimulate high quality and authentic retail,mixed use and hospitality product in the Resort Area through the
c)Continue modernizing and strengthening our attractiveness implementation of the Resort Area Strategic Action Plan and 2020 Resort Initiative City Council resolution.
as a tourism,convention and attractions destination 3e)Build opportunities for Small,Women,and Minority(SWAM)Owned Businesses;Enable incubators to encourage start-
d)Collaborate proactively with our military partners to provide up businesses
support as their strategies and tactics evolve 31) Improve permitting and regulatory processes while keeping in mind the objective to maintain the character and safety of
the VB community
4.Thriving Neighborhoods
a)Build a community made up of distinct,complementary, 4a) Evolve and update comprehensive plan to balance development with neighborhood character and livability
and diverse neighborhoods with more affordable housing 4b) Ensure the development of a diverse range of housing options that parallels our demographics and needs
b)Build community with equitable access to quality park and 4c) Build world-class schools and foster lifelong leaming opportunities
recreational opportunities 4d)Partner with Schools Division on appropriately funding operation and capital needs
c)Build world-class schools&foster lifelong learning opport. 4e)Establish clearer criteria and greater enforcement of Short-term Rental properties
d)Find right balance between managing historical character of
neighborhoods and the need for redevelopment 5a) Establish a culture of continuous improvement that embraces technology and prototyping to improve processes
5. Innovative and Sustainable Govt through data-driven decision making
a)Build an affordable,diverse,equitable,and ethical 5b) Improve our competitiveness to attract,hire,and retain a diverse and skilled workforce
govemment that works for all 5c) Maintain sound financial practices in accordance with all Federal,State and applicable laws and direct the Citys
b)Focus on recruitment&retention of a quality City workforce resources towards its long-term goals
c)Maintain,upgrade,and repurpose aging City buildings, 5d)Uphold City s reputation as an attractive,sustainable,and contemporary community for all while ensuring affordability
infrastructure,and assets 5e)Continue to uplift and support the city workforce and impacted community with a trauma-informed approach through
d)Become an innovative and data-driven organization that their recovery from the lasting effects of May 31,2019
strives to be the best at getting better
Refinements to the Aspiration:
Objective and Goals?
VB Mission:
o The City of Virginia Beach exists to enhance the economic, educational,
social, and physical quality of the community and provide sustainable
municipal services which are valued by its citizens.
OGSP Objective:
o Through continuous innovation, measurement, and improvement, we will
enhance the quality of life and the City's economic vitality for residents,
employees, businesses, and visitors while investing in sustainable and
resilient infrastructure.
�3
Virginia Beach Strategy #1 Rationale
Why should we invest in this strategy?
21st Century Infrastructure
a) Build a flooding and sea level rise resilient community
b) Develop a financially sound storm water management Bond Referendum that will garner broad community support
0 Build a safe, reliable, and accessible multimodal transportation network for all members of the community
d) Implement technology upgrades for the City and its citizens
Why do we believe this strategy is essential to delivering VB's OGSP Objective? What are the benefits of pursuing these priorities and the risks of
not taking these actions?
✓ If we do not address flooding now VB will not remain an attractive place to live,work and play;we must improve our preparation for
the next major Atlantic storm
✓ We need to resolve the feasibility and cost of a Stormwater Bond Referendum,so we have clarity on how much we have remaining to
invest in other important priorities
✓ Given VB's unique mix of urban/suburban/rural/inland/coastal environments,we must upgrade our transportation capability before
increasing congestion makes it harder to attract more jobs and visitors
✓ All members of the VB community deserve quality broadband service given how essential the internet has become for education,
commerce,healthcare and timely communication
✓ The City Administration needs to embrace more modern IT systems to improve overall productivity and the effective and efficient
delivery of services to the public
✓ All the above upgrades are necessary to attract businesses,grow our workforce, and maintain resident and visitor quality of life
9
VB Strategy #1 Rationale 21st Century Infrastructure
Are we making real strategic choices?
WHERE WILL WE PLAY - Where HOW WILL WE WIN - What HOW WILL WE WIN - What
can we best focus our critical resources to benefits will we deliver to satisfy citizens,job benefits will we deliver to satisfy citizens,job
deliver Virginia Beach's future vision? creators, and potential visitors to Virginia creators, and potential visitors to Virginia
Beach Beach
Stormwater Mitigation Stormwater Mitigation Technology Upgrades for Citizens& City
• Periodic flooding caused by sea-level rise • Building support for a Bond Referendum and • Absence of high-speed Internet disadvantages
• Catastrophic damage from storm surges on an urgent timetable lower income citizens for education,health care,
• Feasible way to fund improvements,such as a • Continuous education on the risks/costs of job security,and timely communication
Bond Referendum not dealing with this now • Must have a modern IT platform to attract start-
TransportationImprovements • Incentives for residents and business to build ups and other technology workers
in flood prevention • Modern IT needed to continually improve
• Better connecting a wide variety of living • Assessing the effects of the added debt on productivity/cost in delivering quality City
environments in VB bond rating and ability to take on other services
• Must work for all income levels,residents and attractive priorities
visitors
Technology Upgrades for Citizens& Transportation Improvements
• Reducing cost and lost productivity for those
• Broadband expansion traveling between VB's various districts
• IT upgrades for City Administration • Requires a multi-modal approach as not one
approach will meet all needs
• Critical for recruiting and retaining city
workers
• Growing congestion will suppress tourism
and make us less attractive to job creators
Virginia. Beach Strategy # 1
OGSP Plans Portfolio
Strategy #1: 21st Century Infrastructure
1 a) Complete Master Watershed Modeling efforts for all watersheds, develop cost/benefit decision matrix to
prioritize the project areas, and begin implementing green infrastructure to reduce flood risk and accelerate
adaption activities for sea-level rise.
1 b) Assess community support for a Bond Referendum to mitigate recurring flooding and storm surge risks to the
City and execute a broad communication plan to ensure the Referendum passes this November
1 c) Complete a comprehensive assessment to identify what transportation infrastructure is needed and adopt a
Master Transportation Plan that supports transportation options, reduces congestion, and improves safe travel
for the entire community
1 d) Expand the availability of broadband services by leveraging federal programs to ensure every business and
underserved areas have access to advanced broadband networks
1 e) Protect, secure, and ensure City IT systems and services are capable and available to support departments
goals and mission by updating the IT Data Center with state-of-the-art secure technology with built in disaster
recovery 11
Virginia Beach
ldwe Strategyinvest Rationale
Why shou in this#2
Safe&Healthy Community
a) Implement COVID-19 vaccination and recovery plan, including stabilization for renters
b) Build a safe community that is well-prepared for all-hazards
0 Modernize the public safety operation via improved transparency, diversity, accountability, and technology
d) Build a community with equitable access to quality social services,especially public health capability
e) Focus on reducing current homeless populations and factors that could cause it to grow
Why do we believe this strategy is essential to delivering VB's OGSP Objective? What are the benefits of pursuing these priorities and the risks of not taking
these actions?
• The sooner we get to effective"herd immunity"in our population the sooner we can return to a healthier economy and renewed
tourism
✓ The new hurricane season begins June 1,and recent history suggests we must expect that VB will be affected to some degree,and
needs clear emergency preparation plans for storms of all levels
The societal calls for improving policing means we must ensure we have the strategies and ractices in place to address all crime risks;
enhanced transparency and accountability will be expected in any modern community and we can head off unnecessary conflict by
improving mental health training and building,strong neighborhood liaisons;We need to address police force vacancies and ensure
that our public safety forces better reflects or citizenry
• We need a more VB-focused public health system and be prepared to address the after-effects of COVID-19 isolation and job loss on
our citizens and City workers;we need to encourage healthier lifestyles and proactively find opportunities to connect those in need
with social services.
• Even before COVID-19,homelessness has been an issue for all cities and is likely to spike further as eviction bans lapse
12
Virginia Beach Strategy #2 Rationale — Safe & Healthy Community
Are we making real strategic choices?
WHERE WILL WE PLAY- Where can we HOW WILL WE WIN- What benefits will HOW WILL WE WIN - What benefits will
best focus our critical resources to deliver Virginia we deliver to satisfy citizens,job creators,and deliver to satisfy citizens,job creators,and potential
Beach's future vision? potential visitors to Virginia Beach visitors to Virginia Beach
COVID-19 Management&Recovery COVID-19 Management PH&SS Improvement
• Flattening the infection curve • Ongoing mask wearing&distancing • Better access for all citizens to quality social service
• Testing&Contact Tracing • Improve Vaccine Accessibility and mental health care
• Mass Vaccination • Reducing vaccination resistance • VB dedicated public health leader
• Small Business Recovery&Financial Assistance
to Citizens and Eviction Prevention COVID-19 Recovery Reducing Homelessness
All-Hazards Preparation • Simplifying access for small businesses and • Minimizing new evictions once bans expire
• Storm surge geomapping citizens in need to COVID-19 financial assistance • Provide supportive housing options
• Building Codes Review • Promoting safe options for business and tourism • Ensure social service support coverage
• Evacuation Prep reopening support dining and entertainment
options
Public Safety/Police All-Hazards Preparation
• Improved 1"responder diversity&address police Public Safety/Police • Traditional extreme weather events
force recruitment and retention • Achieving 1"Responder diversity that matches • In light of Texas,extremely cold temps
• Enhance policing transparency&accountability the population • Cybersecurity threats increasing
• Neighborhood Liaisons • Finding the right balance on police accountability • Mass Casualty violence
PH&SS Improvement and effective policing • Next pandemic
• Mental health focus • Providing more training&support for police
• Dedicated Public Health leadership when dealing with mental health calls
• Homeless prevention • Better community policing partnerships with
neighborhoods
Virginia Beach Strategy #2
OGSP Plans Portfolio
Strategy #2: Safe & Healthy Community
2a) Take steps needed to achieve herd immunity levels of COVTD-19 vaccination in the City by year
end, clarify ways to prevent reinfection, and speed economic recovery funds and programs for
individuals, businesses and non-profits.
2b) Develop pro-active plans for all hazards and all threats to the city, not just the ones we happen to
be experiencing now or thinking about now.
2c) Modernize the public safety operations via improved diversity, accountability, technology, and
community problem-oriented policing
2d) Provide the essential social infrastructure to promote health and support a healthier community
2e) Continuously improve homelessness programs to build service capacity
14
Virginia Beach Strategy #3 Rationale
Why should we invest in this strategy?
Growing Economic Opportunity
a) Build a City well positioned to compete in the regional, national, and global economy for higher paying jobs and a year-
round economy by ensuring we increase shovel-ready sites and invest in workforce development
b) Build opportunities for Small, Women, and Minority(SWAM) Owned Businesses; Enable incubators to encourage start-up
businesses
c) Continue modernizing and strengthening our attractiveness as a tourism, convention and attractions destination
d) Collaborate proactively with our military partners to provide support as their strategies and tactics evolve
Why do we believe this strategy is essential to delivering VB's OGSP Objective? What are the benefits of puming these priorities and the risks of not taking these actions?
✓ Given damage done to the economy by COVID-I9 restrictions,it is critical we are ready to support and invest in both businesses(of all sizes)and individuals as
things start to open post-COVID
✓ VB will have a stronger and more stable economy if it brings in more high paying and if it strengthens activity that boosts the economy year-round
✓ Vet Sea Cable and Offshore Wind projects to determine if they can generate large and longer-term job opportunities
✓ We should continue modernizing and strengthening our attractiveness as a tourism and convention destination,and seek innovative ways to market VB as a
destination
✓ Given many changes taking place in US Military strategy and tactics,we need to continue collaborating proactively with our local military partners to ensure
their sustainability and reinforce their importance to VB
✓ We should assess future development opportunities that will arise once flooding issues are mitigated
✓ We want to ensure our permitting and regulatory processes are not too onerous,but also restrictive enough to maintain the character and safety of the VB
community
VB Strategy #3 Rationale - Growing Economic Opportunity
Are we making real strategic choices?
WHERE WILL WE PLAY- Where can we HOW WILL WE WIN- What benefits will HOW WILL WE WIN- What benefits will we
best focus our critical resources to deliver Virginia we deliver to satisfy citizens,job creators,and deliver to satisfy citizens,job creators, and potential
Beach's future vision? potential visitors to Virginia Beach visitors to Virginia Beach
Higher Paying/Year-Round Jobs I I igher Paving/Year-Round Jobs SWAM and Incubators
• Balance out lower paying private sector jobs • Building a technology and advance mfg.rep • Build opportunities for Small,Women,and
• Year-round for more stable economy • Proximity to many Eastern pop.Centers Minority(SWAM)Owned Businesses
• Attractive community to help recruit and retain • Enable incubators to encourage start-up businesses
Tourism,Conventions,Attractions employees
• User friendly,sea-side destination Military Relationship
• Competitive convention facilities&services Tourism,Conventions,Attractions • Stay close to the Military decision makers to ensure
• Address CVB leadership to enable a high • Build on existing strong tourism reputation we meeting their current and likely future needs
performing organization • Affordable and pleasant convention location • Leverage defense presence to recruit high paying
• Add facilities&services conventions are seeking ancillary job creators
Sea Cable/Offshore Wind • Innovative destination marketing
• Not just a pass-through but jobs source • CVB Restructure and Investment Permitting
• Global presence • Taking a data driven performance improvement to
Sea Cable/Offshore Wind existing processes
SWAM and Incubators • Compete for Reg'l HQ and permanent staffing • Identify ways to reduce development approval time
• Minority and women-owned businesses presence for projects that meet certain City development
• Small business and start-up entity support • Leverage these to bring in other global and tech- goals or objectives
oriented job creators
Military Relationship • Workforce development partnerships for foster Overarching
• Remain agile as military changes its focus job readiness • Finalize Economic Development Strategy to focus
• Welcoming and affordable to military families efforts and resources
Permitting
Permitting®ulatory process improvement
Virginia Beach Strategy #3
OGSP Plans Portfolio
Strategy #3: Growing Economic Opportunity
3a) Finalize Economic Development Strategy to focus efforts and resources
3b) Use updated Economic Development Strategy to build a real estate plan for development of future industrial
sites
3c)Partner with VBCPS, the Workforce Council, and local Higher Education providers to expand workforce
training programs based on strategic industries
3d) Stimulate high quality and authentic retail, mixed use and hospitality product in the Resort Area through the
implementation of the Resort Area Strategic Action Plan and 2020 Resort Initiative City Council resolution.
3e) Build opportunities for Small, Women, and Minority (SWAM) owned businesses; Enable incubators to
encourage start-up businesses
3f) Improve permitting and regulatory processes while keeping in mind the objective to maintain the character
and safety of the VB community
17
Virginia Beach Strategy #4 Rationale
Why should we invest in this strategy?
Thriving Neighborhoods
a) Build a community made up of distinct, complementary, and diverse neighborhoods with more affordable housing
b) Build a community with equitable access to quality park and recreational opportunities
c) Build world-class schools and foster lifelong learning opportunities
d) Find the right balance between managing historical character of neighborhoods and the need for redevelopment
Why do we believe this strategy is essential to delivering VB's OGSP Objective? What are the benefits of pursuing these priorities and
the risks of not taking these actions?
✓ To succeed long term,VB must be a great place to live and play not just to work. This means quality housing for a variety of income
levels. This will mean more density insome areas,while providing other options for those seeking suburban and rural environments.
s We must find ways to make quality housing affordable for the VB workforce,including City employees, or we will not be able to attract
the top talent we need as a City and for our job creators
f We need to be opportunistic in repurposing available commercial properties,such a failed shopping centers,for affordable housing,
which will also minimize disruption to existing residential neighborhoods
• We must assess whether all citizens have access to needed outdoor park spaces and recreation centers
• High quality schools are a prime motivator for deciding to move to VB;we need to collaborate more with the School Board on the
master plan to ensure the money allocated to K-12 education is benefiting the entire community
s We should also find ways to expand higher education options in the VB area,both for students and those interested in life-long learning,
such as retirees.
18
Virginia Beach Strategy #4 Rationale Thriving Neighborhoods
Are we making real strategic choices?
WHERE WILL WE PLAY- Where can we HOW WILL WE WIN- What benefits will HOW WILL WE WIN- What benefits will
best focus our critical resources to deliver Virginia we deliver to satisfy citizens,job creators,and we deliver to satisfy citizens,job creators,and
— Beach's future vision, potent:a visitors to ':rgtnta :eac potential visitors to Virginia Beach
Nurturing Varied/Distinct Living Areas Nurturing Varied/Distinct Living Areas Quality Recreation and Cultural Options
• Focus on choices of Urban,Suburban and Rural • Focus on transportation improvements that better • Think more city-wide when investing in new Parks
Living Environments , link these spread-out areas and Rec facilities;avoid have and have-not districts
• Make sure each of these options reflect diversity • Remove barriers to greater diversity in all VB areas • Stay current on what the public wants for arts,
and inclusion • Neighborhood restoration and preservation entertainment, and recreation options
• Management of STRs • Avoid negative side-effects of gentrification
Affordable Housing • Improve Community engagement on development Quality Schools and Lifelong Learning
• Must increase stock of affordable housing for plans/decisions • Increase collaboration and strategic planning with
middle class and below economic groups • Establish clear criteria and enforcement of Short- School Board and the community,versus just
• Specific focus on nearby housing for City term Rental properties passing tax dollars through to them
employees to help retain top performers • Help them assess asset management and
replacement to fit with overall City master
Quality Recreation and Cultural Options Affordable Housing planning
• Look holistically at Parks/Rec/Cultural Arts • Repurposing vacant shopping centers for more • Attract high education options to improve cultural
options for all members of the community affordable housing options enrichment in VB and to offer adults more life-long
• Appropriate attention to arts and aesthetic • Redevelopment and infill guidelines to meet learning options
options as well;public art multiple affordability levels
Quality Schools and Lifelong Learning
• Work collaboratively with school board on assets
management and equity issues
• Attract higher education institutions
Virginia Beach Strategy #4
OGSP Plans Portfolio
Strategy #4: Thriving Neighborhoods
4a) Evolve and update comprehensive plan to balance development with neighborhood character and
livability
4b) Ensure the development of a diverse range of housing options that parallel our demographics and
needs
4c) Provide accessible, diverse, and inclusive parks & recreation, library, arts and cultural programs
and amenities
4d) Partner with Schools Division on appropriately funding operation and capital needs
4e) Establish clearer criteria and greater enforcement of Short-term Rental properties
20
VB Strategye #5 Rationale
Why should we invest in this strategy?
Innovative and Sustainable nmnt Gover
a) Build an affordable, diverse, equitable, and ethical government that works for all
b) Focus on recruitment & retention of a quality City workforce
c) Maintain upgrade and repurpose aging City buildings, infrastructure, and assets
d) Become an innovative and data-driven organization that strives to be the best at getting better
Why do we believe this strategy is essential to delivering VB's OGSP Objective? What are the benefits of pursuing these
priorities and the risks of not taking these actions?
✓ Community expectations everyone are increasing quickly that their government will embrace new emphasis on innovative,
equitable, and inclusive approaches to governing and engaging with its citizens
✓ Competition for the best people to staff the government is intense. The City,must find ways to remain comppetitive on the
salaries and benefits we can offer to recruit and retain the best people. This includes ensuring there is a sufficient supply of
affordable housing for them.
✓ We should keep investing in development of our employees to help them adapt to fast changing technologies and practices,
and to motivate them to stay with the City
• The City's reputation as an attractive, sustainable, and contemporary community for all requires us to ensure the taxes are
affordable and that we keep attention on regular maintenance of our physical assets
• Our workforce and the community are collectively still healing from the lasting effects of the May 31 tragedy
zi
VB Strategy #5 Rationale Innovative & Sustainable Government
Are we making real strategic choices?
WHERE WILL WE PLAY- Where can we HOW WILL WE WIN- What benefits will HOW WILL WE WIN- What benefits will we
best focus our critical resources to deliver Virginia we deliver to satisfy citizens,job creators, and deliver to satisfy citizens,job creators,and potential
Beach's future vision? potential visitors to Virginia Beach visitors to Virginia Beach
Affordable.Diverse,Equitable&Inclusive Gout Affordable.Diverse.Equitable&Inclusive Govt Communicating and Engaging_the Public
• What are the areas requiring attention to attraru • Prioritize inclusion,diversity,equity and access • Continuously improve the content and frequency of
the best employees and to better match our • Competitive reward and recognition programs communication to the public;build stronger&
workforce to the community • Improve work environment and culture broader support for new strategic priorities
• How to retain those employees once they are here • Affordable housing for all employees in the
• Ongoing employee wellness and development immediate area Asset Management
programs • Enhance efforts to become a trauma informed • Update purpose and capacity of City facilities for a
Effective and Efficient Community Services workforce post-Covid working world
• Where can we improve the user friendliness of • Access AAA vs AA Bond rating tradeoffs to clarify
the services the community requires from us Effective and Efficient Community Services capital funding capacity longer-term
• How can we improve the efficiency of how we • Assess the need for a redevelopment authority • Reassess how much office space needed in a post-
operate while remaining affordable • Pilot programs to test innovative ideas Covid world
• Higher productivity will help to fund better pay • Establishment of an enterprise wide • VB-wide master planning for replacement of schools
and benefits options in attracting top talent PerformanceStat Leadership Strategy and other public use buildings
• VB-wide master planning of road and bridge
Asset Management replacements and upgrades
• Clear asset management master plan
• Don't repair/replace that which we may no
longer need
• Careful mgt of aging infrastructure
VirginiaOGSP BeachP Strategyrtfolio #5
lans Po
Strategy #5: Innovative and Sustainable Government
5a) Establish a culture of continuous improvement that embraces technology and prototyping to improve
processes through data-driven decision making
5b) Improve our competitiveness to attract, hire, and retain a diverse and skilled workforce
5c) Maintain sound financial practices in accordance with all Federal, State and applicable laws and direct the
City's resources towards its long-term goals
5d) Uphold the City's reputation as an attractive, sustainable, and contemporary community for all while ensuring
affordability
5e) Continue to uplift and support the city workforce and impacted community with a trauma-informed
approach through their recovery from the lasting effects of May 31, 2019
2s
VB Strategy #1 Measures — 21 st Century Infrastructure
How we will track progress over time
Proposed Measure Why will this be an effective Measure?
# of buildings, roadways, and properties that received
decreased flood risk due to City efforts.
% of infrastructure assets with positive performance ratings.
of critical infrastructure for which vulnerabilities have been
assessed& addressed via protective and/or mitigation strategies.
% of City facilities rated as "good" in the Facilities Condition
Index.
% of all City buildings with ENERGY STAR scores greater
than XX
Total time that critical city services were unavailable due to
information security risk.
%HH and Business penetration of high-speed internet service
How to measure improvements in transportation for all elements
of the community
2a
VB Strategy #2 Measures — Safe & Healthy Community
How we will track progress over time
Proposed Measure Why will this be an effective Measure?
Part I Violent & Property Crime Rate per 1,000 Population
911 call answer times
of emergency responses that meet established time standards
for response
% of VB employees who have completed emergency
management preparedness and response training(as
appropriate).
# of persons experiencing homelessness
# of new people entering homelessness
# of persons who successfully exit from homelessness
# Public safety comments/complaints
25
VB Strategy #3 Measures — Growing Economic Opportunity
How we will track progress over time
Proposed Measure Why will this be an effective Measure?
Employment Rate
Median family income of the immediate community, not the
surrounding area; private sector wages, so not overly skewed by
military pay
# of living wage jobs created
SWAM participation %and/or spend on City Contracts
# of commercial permits
of commercial permit plan reviews completed on time
How track success in maintaining cybersecurity?
26
VB Strategy #4 Measures — Thriving Neighborhoods
How we will track progress over time
Proposed Measure Why will this be an effective Measure?
% of residents who report being satisfied or very satisfied with
the quality of library, and parks and recreational services and
programs.
% of residents who report being satisfied or very satisfied with
the quality of library, and parks and recreational facilities
provided by the City.
# of residential plan reviews completed on-time
Track arts and culture availability and participation
What education metrics will we use to measure quality of the
schools
How to measure that amount of support for all students is
equitable across school system
27
VB Strategy #5 Measures — Innovative & Sustainable Govt.
How we will track progress over time
Proposed Measure Why will this be an effective Measure?
#of median family income that goes to median City tax bill.
#of City Services provided online through the City Web Portal
Ratio of current reserves to overall annual General Fund budget
City bond ratings(General Government,Utilities,etc.)
%of residents who report being satisfied or very satisfied with the overall
quality of services provided by the City
%of residents who express high levels of satisfaction with the outcomes of
their engagement with the city
%of employees who report overall satisfaction
Employee attrition rate(categorized by reason for leaving)
#Complaints from the public on services falling short
of projects completed on-time;%of late projects where public is 28
informed as to why
�w
VI' '
Y P Z
zvik rig- '�"". G\rr`
. s 074 0�
' aF OUR NMI The
Page
City Council Retreat
March 9 2021 Strategic Plan
Harry Kangis
The One Page Solutions Team
Co-Founder and General Manager
29
Day 2 Agenda
Wrap up from Strategic Priorities: Are you aligned on the 5 strategies? 8:30am— 9:00am
ext Steps 9:00am — 9:30am
Review and Refining with City Dept. Heads
Building Performance Management Systems
Assessing Capability to Execute the Priorities
so
Assessing Sufficiency of the OGSPR'
to deliver the Objective and Goals
o Does the OGSP reflect the strategic effort the organization sees as needed to win long
term?
o Is there an effective process to identify and integrate the operating priorities with the strategic priorities?
o Do all the support organizations understand their role in the OGSP?
o Assuming you follow the Strategic choices as described; and complete the Plans fully
and on the times noted:
o Don't worry about Capability at this point; that comes next!
o Will we deliver this year's Goals with an 80% confidence level?
o Will we be on the right glide path to achieve the next 2 years as well?
o If the answer is "no" or "not sure," you need to either reduce your aspirations or make
the strategic horsepower greater
31
Assessing the Relative Priority
of the OGSP® Plans
While the OGSP Plans represent the most critical strategic priorities for the organization over the
coming 9-12 months, they are not all equal in their urgency. To avoid the strategic planks becoming new
silos, it is important for the senior team to embrace a common view of how these Plans relate to each
other in importance, and for resources to migrate to them accordingly.
"A" Level— Must get done on time or we likely will not meet current year goals
• These initiatives typically relate more to building of top line revenue or improved profit in the current fiscal
year; can sometimes include projects to improve current capability with customers or consumers to achieve
conversion and retention goals.
"B" Level Must Get Done with Only Minor Delays or Some Goals at Risk
• These initiatives typically relate more to ideas which will affect the business later in the fiscal year, will be
launched in subsequent fiscal years, or affect secondary markets or customers/consumers. They are often still
building blocks for the current forecast.
"C" Level—A and B Level Issues Mean Delays Here; Affects Long Term More vs. current
• These initiatives are often platform and organization building ideas which can withstand some delay without
undermining current year goals.
OGSP Project Summary Tool
Involving the broader organization in the plan; making due dates more realistic
OGSP Strategy X:
EDEN -
121321E --�
-
33
The Won't Do List'
Why it's the second most important one page document
in the OGSP process
• Fastest way to turn up needed resources
• Builds credibility within the organization that leadership is willing to make hard calls
•
The difference between successful
people and really successful people
Tia:y• is that really successful people say
4o,, _ no to almost everything.
W mhen Nita
AZ QUOTES
34
Won't Do List '.'
To build more capacity to deliver the strategic plan
STOP - Work we WON'T DO because it is not clearly connected to the OGSP Objective (poor risk/reward ratio;
too small to 'move the needle ')
HOLD — Work we will DELAY until sufficient resources are available (lower relative priority; has a longer
payback or higher upfront investment)
Won't Do List®
To build more capacity to deliver the strategic plan
LIMIT — Work LIMITED to just long-lead or highest priority steps (only critical path steps: isolate
activity to defined functions or people)
Operating Principles—Behaviors/work processes that waste time or commit resources before proper evaluation and
discussion
Resource Needs & Barriers
Strategy #x: Strategy Headline (Captain)
Category Description of Need $'s/People Owner Timing Proposed Action
Resource
Expertise
Barrier
37
Questions?
3 f3
8
ADJOURNMENT
ITEM#71374
Mayor Robert M. Dyer DECLARED the City Council SPECIAL MEETING (City Council Retreat)
ADJOURNED at 3:25 P.M
Amanda Barnes MC Robert M. Dyer
City Clerk Mayor