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VIRGINIA BEACH CITY COUNCIL
Virginia Beach, Virginia
March 27, 2018
Mayor Wiliam D. Sessoms, Jr., called to order the CITY COUNCIL'S WORKSHOP in the City Council
Conference Room, Tuesday, March 27, 2018, at 4:00 P.M.
Council Members Present:
Jessica P. Abbott, M. Benjamin Davenport, Robert M. Dyer,
Barbara M. Henley, Vice Mayor Louis R. Jones, Shannon DS
Kane, John D. Moss, Mayor William D. Sessoms, Jr., John E.
Uhrin, Rosemary Wilson and James L. Wood
Council Members Absent:
None
March 27, 2018
-2-
CITY MANAGER'S BRIEFINGS
QUARTERLY FLOOD CONTROL/
STORMWATER PROGRAM- Update
4:00 P.M.
Mayor Ses;oms welcomed Toni Alger, Stormwater Engineering Center Administrator — Public Works.
Ms. Alger expressed her appreciation to City Council for their continued support and distributed a copy
of today's ftriefing which is attached and made a part of this record.
Mayor Seswms thanked Ms. Alger for the informative presentation.
March 27, 2018
3/27/2018
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QUARTERLY STORMWATER UPDATE
FLOOD CONTROL PROJECTS
TONI ALGER, P.E.-STORMWATER ENGINEERING CENTER ADMINISTRATOR
MARCH 27, 2018
11111
Aragona Drainage Improvements
Ashville Park Drainage Improvements
Central Resort District Drainage Improvements
A
S Chubb Lake/ Lake Bradford
H
B Eastern Shore Drive Drainage
0 Sherwood Lakes Drainage Improvements
A
R Stormwater Master Planning, Analysis and Inventory
D
Windsor Woods, Princess Anne Plaza, and The Lakes
2
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3/27/2018
ARAGONA DRAINAGE
IMPROVEMENTS, 7-400
❑ Neighborhood developed in
the mid 1950s
❑ Storm drain improvements
to address severe roadway
flooding
❑ Project limits include the
area south of Haygood Roa
and west of Aragona Blvd.
Lynbrook Ruaenao4 .,r^'
Lanchnq - Aynpnr.l
Park Aragona
ViMape
Estimated Total Project Cost: $3.76M
3
ARAGONA DRAINAGE IMPROVEMENTS
FIRST QUARTER 2018 ACTIVITIES
• Design ongoing, approximately 50% complete
• Scheduled to advertise for construction in July 2018
4
2
L
3/27/2018
,• , Ill
Estimated Total Project Cost: $35M; BTC: $26M i t ASHVILLE PARK DRAINAGE
IMPROVEMENTS, 7-047
Storm drain improvements
to address severe roadway
and property flooding
i Stormwater Pump Station
J Gated Control Structure at
Existing Outfall (Flanagans
Lane)
Additional Stormwater
Sigma
'°" Ponds
❑ Temporary pumping in
advance of significant
rainfall events
Phase I Estimated Project Cost:$11.2M -$13.5M o Pump to elevation 1
5
5
ASHVILLE PARK DRAINAGE IMPROVEMENTS
FIRST QUARTER 2018 ACTIVITIES
• Ongoing — Maintain lakes at elevation 2.0
• Dec 2017 — Phase I draft preliminary engineering report (PER)
submitted
• Jan/Feb 2018 — Meetings with Developer, HOA, US Fish and Wildlife
• February 27, 2018 — City Council Briefing
• March 2, 2018 — Final PER completed
• March 19, 2018 — Provided Developer draft term sheet & summary of
the cost participation
• March 25, 2018 — Advertised Lake #14 Weir Gate
Complete construction October 2018
• March 30, 20 — Draft 30% plans and term sheet
6
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3/27/2018
t
al ' CENTRAL RESORT DISTRICT
DRAINAGE IMPROVEMENTS,
7-041
Multi-phase project to
address severe roadway
flooding
Improvements include
storm drains, tide gate,
pump station & ocean
outfall
J Interim Projects:
o Replace existing 42"pipe
' -'"r». located under 24th Street with
a box culvert or bridge;
estimated cost^'$6M
o Redirect approx.15 ac.from
Estimated Total Project Cost: $113M; BTC$112.7M 21st St and Baltic Ave.to 16th
St.Pump Station;
estimated cost^'$15M
7
7
CENTRAL RESORT DISTRICT DRAINAGE IMPROVEMENTS
FIRST QUARTER 2018 ACTIVITIES
• No project activities at this time
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3/27/2018
4
,.�.� CHUBB LAKE/
LAKE `.,•
CHUBB `•• CHESAPEAKE BAY BRADFORD LAKE , 7-053
'A,'``�.,� ❑ Multi-phase project
BRADFORD ...�'..,�...,
LAKE °^'"` ❑ Storm drain improvements
to alleviate roadway
flooding
E�RwE j Additional stormwater
sNv3 culverts under roadways
❑ Tide control devices such as
Amr
mechanized sluice gates
01\1101)
NIORTNA 4131 ❑ Stormwater management
B wo,1 pond improvements
Estimated Total Project Cost:$32M; BTC:$24.4M ❑ Channel and ditch clearing
9
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CHUBB LAKE BRADFORD LAKE
FIRST QUARTER 2018 ACTIVITIES
• Public Works continues coordinating with the Navy to open the weir
gate when major rain events are forecasted
• March 27, 2018 — Public Works is meeting with JEB Little Creek staff to
discuss cleaning ditch across Little Creek Base between Lake Bradford
and Nider Boulevard
• Public Works/Operations waiting on permit to remove sediment from
ditch between Nider Boulevard and Boone Clinic culvert
• Identified 2 Early Implementation Projects
• 780 feet of ditch from the north side of Shore Drive north to Lake Bradford
• 1,150 feet of ditch from Pleasure House Road (north of Shore Drive) west to
Lake Bradfor
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3/27/2018
��'` EASTERN SHORE DRIVE
i - C eHenry DRAINAGE PHASE I,
. . ,..-'''". 7-151
• Sn'
,e.
�� -A Multi-phase project
Lynnhaven r .
-
Shores
cm ❑ Flood control drainage
e Story
I _
y the Sea improvements
J Improvements include
stormwater collection
systems,tide gates & pump
I Bro dBdy
stations
U Detailed Engineering
Analyses to develop the
specific program of floo
control measures
Estimated Total Project Cost: $83.2M; BTC$27.1M
11
EASTERN SHORE DRIVE DRAINAGE PHASE
FIRST QUARTER 2018 ACTIVITIES
• Cape Henry Canal Drainage Improvements design underway
o Box culvert from Ebb Tide Road to West Great Neck Road
o Side Street Outfall Improvements to Starfish Rd, Ebb Tide Road & Red Tide Rd
o Begin construction — July 2018
o Estimated Project Cost— $3M
o Provides an improved drainage outfall for the Shore Drive Corridor
Improvements — Phase III project (CIP 2-117)
• Parcel at Page Avenue for future pump station is being acquired as part
of the Shore Drive Corridor Improvements — Phase III Roadway project
Appraisals are underway
• March 15 & 26 2018 — Met with BAC and SDCC to give project briefing
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3/27/2018
04 SHERWOOD LAKES
DRAINAGE IMPROVEMENTS,
7-048
J Project to address severe
roadway and property
flooding
Improvements include a
pump station with a pipe
connection between 2 lakes
❑ Temporary Pumping in
advance of rain event
Estimated Total Project Cost:$3M
13
SHERWOOD LAKES DRAINAGE IMPROVEMENTS
FIRST QUARTER 2018 ACTIVITIES
• Ongoing — Lakes pumped down to elevation 3.0 in advance of
forecasted significant rainfall
• Design for the Permanent Pump Station including interconnect pipe is
complete
• Design for pump station vault, lake intake pipe, and outfall pipe design
is complete
• Plans for pump station, vault, lake intake pipe, and outfall pipe have
been combined to be bid as one project
• Cost Participation Agreement and Construction Advertisement Pending
14
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3/27/2018
WINDSOR WOODS, PRINCESS
ANNE PLAZA &THE LAKES,
7-028, 7-050, & 7-051
3 Detailed Engineering
Analyses to develop the
specific program of flood
control measures
❑ Projects combined for initia
analysis
❑ Analyses will Identify
o Needed Improvements
o Cost of the Improvements
o Implementation and
Phasing Plan
o Environmental Permitting
Required
Estimated Total Project Cost: $129M; BTC: $73M
15
WINDSOR WOODS, PRINCESS ANNE PLAZA & THE LAKES
FIRST QUARTER 2018 ACTIVITIES
• January 22, 2018 — Fact finding Charrette with Public Works Operations
• January 31, 2018 — Program Solutions Alternative Charrette
• January 31, 2018 — Completed initial stormwater models
• February 6, 2018 — Workshop to develop Princess Anne Plaza and The
Lakes early implementation projects
• February 6, 2018 — Presentation to council on FEMA Flood Mitigation
Grant projects
16
3/27/2018
WINDSOR WOODS, PRINCESS ANNE PLAZA & THE LAKES
FIRST QUARTER 2018 ACTIVITIES
• February 19, 2018 — Follow-up of Program Solutions Charrette
• February 26, 2018 — London Bridge Creek Pump Station Location
Alternatives Draft Assessment Brief
• March 7, 2018 — Public Utilities coordination for initial drainage
projects
• Attended the following meetings:
c, January 9, 2018 — Princess Anne Plaza Civic League Project Update
February 13, 2018— Princess Anne Plaza Civic League Project Update
o March 13, 2018— Princess Anne Plaza Civic League Project Update
17
EARLY CONSTRUCTION PROJECTS -
CLUBHOUSE ROAD DRAINAGE IMPROVEMENTS
• Design in Progress
• Survey and Geotech
work underway
Club House Rd • Complete Design —
Drainage Improvements
Bow Creek October 2018
Recreation Center and
Golf Course • Acquisition Complete —
September 2019
cc • Construction Start —
January 2019
En
18
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3/27/2018
EARLY CONSTRUCTION PROJECTS - FEMA REIMBURSEMENT PROJECTS
• Project 1 — $4.2 M
O 2,608 If of pipe improvements
O South Plaza Trail from Rosemont Road to Presidential Boulevard to Windsor
Woods Canal
• Project 2 — $948 K
O 1,415 If of pipe improvements
Old Forge Road to Red Lion Road to Windsor Woods Canal
• Project 3 — $201 K
O 445 If of pipe improvements
O Kings Point Court to Windsor Woods Canal
19
EARLY CONSTRUCTION PROJECTS -
FEMA REIMBURSEMENT PROJECTS
Lake Windsor Pump Station 1264
and Gated Control Structure
Windscr Woods
Flementary Schoo.
43} Lake __?
Windsor o
Mount S Plaza Trad 1.
Trashmore . --a -
... . .. i Project 1
Lake
Trashmore Project 2
Project •
Windsor Oaks
Flementary School
• Engineering Design Initiated
20
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3/27/2018
DREDGING PROJECTS
Windsor Woods Cana'
Windsor Oaks West 1
Windsor Oaks West 2
Windsor Oaks West 3 -----�s�
Northgate Ditch
21
COMPLETED PROJECTS
WINDSOR OAKS WEST I,
Afte CIP 7-415.039
`` ., ` Dredge 1 ,510-ft canal to restore
` original drainage capacity
_ 4,218 cubic yards of dredge
material removed
, ! * £ ` Notice to Proceed —
tt `>A June2017
Construction Complete
Avg. Pre-depth: 0.8'
Total Project Cost — $700K
Avg. Post-depth: 4.05'
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3/27/2018
COMPLETED PROJECTS
WINDSOR OAKS WEST II,
After CIP 7-415.039
„ .,- '� _ ' ki , ■ Dredge 2,760-ft canal to restore
_, ,� original drainage capacity
°�_} ■ 7,053 cubic yards of dredge
material removed
7x _� Notice to Proceed —
tr .. 1 `, `, .,:,-� July 2017
LI . . Construction Complete
7451001
` Avg.tfre-depth: 0.65' ` Total Project Cost — $675K
Avg. Post-depth: 4.55'
/ f
23
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ACTIVE PROJECTS
- WINDSOR WOODS CANAL,
'; , 4 x CIP 7-028.002
. ,ram ° t y _ ' Dredge 4,100-ft canal to restore
° �� ` �'� ,` `Y" original drainage capacity
:::V 3143-+=i-tttl ,►k^..- - ' ' - Approximately 10,900 cubic
,f
'""`""�'' yards of dredge material
' , Notice to Proceed —
r "" June 2017
4. , . Construction Complete —
June 2018
` =, —` Avg. Pre-depth: 3.1'
w -R� Avg. Post-depth: 5.2' Estimated Total Project Cost—
$2M
24
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3/27/2018
ACTIVE PROJECTS
;, .. , ' NORTHGATE DITCH,
' • CIP 7-028.001
r,
,. y , Dredge 6,000-ft canal to restore
•
.: :fi original drainage capacity
.. • • Approximately 3,000 cubic
;,y
4 = yards of dredge material
.�-.. . Notice to Proceed —
• '•'- "1 May 2017
M: - ' Construction Complete —
May 2018
• , ` Avg. Pre-depth: 1.5' t
• Avg. Post depth: 4.4' ° Estimated Total Project Cost —
i - y $2M
25
ACTIVE PROJECTS
.:-.1 v---• . 1 WINDSOR OAKS WEST III,
4 ; : : s: ,•. .: ' ,. •. A • CIP7-415.039
. ' 4 :' .
•_ " '� Dredge 2,150-ft canal to restore
'��' original drainage capacity
, - Approximately 5,000 cubic
an4-0' • yards of dredge material
• Begin Construction —
April 2018
I
• Construction Complete —
•r.f January 2019
'`' Avg. Pre-depth: 1.8'
};, Avg. Post depth: 4.95' Estimated Total Project Cost—
sr , •
$650K
26
1'
3/27/2018
SWM MASTER PLANNING,
41111
ANALYSIS, AND MODELING,
- 7-027
,� i Updating the City's 31
tiri Stormwater Watershed
404*
Models
❑ Includes Preliminary Drainage
Analysis to identify future
Capital Drainage Projects
Models will allow Stormwater
Engineering Center to provide
drainage design parameters
such as downstream water
surface levels to developers for
projects
Models will be kept up to date
and reside in the Stormwater
Total Project Cost: $13.7M Engineering Center
11111111 27
27
SWM MASTER PLANNING, ANALYSIS, AND MODELING
UPDATE ON SCHEDULE
• Lynnhaven River Watershed
o Watersheds 3, 5, & 8 are complete
o Watersheds 4 & 7 completed January 2018
o Watershed 6 & 30 to be complete by April 2018
o Watershed 31 to be complete by October 2018
o Watershed 1 to be complete by December 2018
• Atlantic Ocean Watershed
Watershed 29 to be complete by January 2019
28
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3/27/2018
SWM MASTER PLANNING, ANALYSIS, AND MODELING
UPDATE ON SCHEDULE
• Elizabeth River Watersheds
o Watershed 2 to be complete by August 2018
o Watersheds 17-22 to be complete by February 2019
• Southern Rivers Watershed
o Watersheds 10 & 12 to be complete by April 2018
o Watersheds 9 to be complete by August 2018
o Watersheds 11, 16, 23-28 to be complete by November 2018
o Watershed 13, 14 & 15 to be complete by January 2019
29
DISCUSSION
30
i5
-3-
CITY MANAGER'S BRIEFINGS
PENDING PLANNING ITEMS
4:21 P.M.
Mayor Sessoms welcomed Jimmy McNamara, Planning. Ms. McNamara expressed his appreciation to
the City Council for their continued support and distributed a copy of today's briefing which is attached
and made a part of this record.
Mayor Sessoms thanked Mr. McNamara for the informative presentation.
March 27, 2018
3/27/2018
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�ti .`t.• r,� ' Virginia Beach,_ Planning Items
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`' . ;. „ ; April 3rd & April 17th City Council Meetings
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1
SUMMARY - April 3rd
1 Planning item scheduled for City Council's consideration
1. Argos Properties II,LLC—Princess Anne District 14,17" .—�I ......��I 1
• Conditional Change of Zoning(AG-1&AG-2 Agricultural Districts to Conditional R-10 - , I i I t -
Residential & P-1 Preservation District) I f__J ti---t 1
1 Beach
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Centerville
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1 Princess Anne
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3/27/2018
Argos Properties II, LLC Agenda Item
Council District Princess Anne
Location North side of Princess Anne Road
Nimmo Parkway
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Road.
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**Deferral Requested**
Conditional Change of Zoning(AG-1&AG-2 Agriculture to Conditional R-10 Residential& P-1 Preservation)
Staff recommends Approval
Planning Commission voted 7-3,with 1 abstention,to recommend Denial
3
Argos Properties II, LLC "' "
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• The applicant has requested a deterral until the May 15, 2018 City Council hearing
• 32 single-family dwellings proposed on the 50.84 acre site(21.34 acres of density eligible area; 1.5 units
per acre)
• No dwellings to be located in Floodplain Subject to Special Restrictions, Wetlands or Southern Rivers Buffer
Area
• Entrance to development is located in the Floodplain Subject to Special Restrictions
• Preliminary stormwater strategy reviewed and accepted
4
2
3/27/2018
SUMMARY - April 17th
5 Planning items scheduled for City Council's consideration
1. Kay F.Stanley—Beach District i 1
• Conditional Use Permit(Home Occupation—Commercial Kitchen) eayside Lynnha f
ven
•
2. Evergreen Virginia,LLC—Beach District "'~^;�I" .
• Conditional Use Permit(Car Wash Facility)
• Modification of Conditions (Motor Vehicle Sales&Automobile Repair Establishment) t._ e'a`h\l
Kempsville 1
<' Rolm Hal i
3. Logan Virginia Properties,LLC—Kempsville District Hall
• Conditional Rezoning(B-2,A-12&R-7.5 to Conditional B-2) 1 \
\
Centerville ! �'.
4. ACC Property Solutions,Inc.—Beach District t
• Conditional Rezoning(A-12 to Conditional R-5S)
5. Kellye V.Gentry—Princess Anne District
• Subdivision Variance(Sections 4.4(b)&(d))of the Subdivision Regulations)
d
5
Kay F. Stanley Agenda Item
Council District Beach
Location 312 Indian Avenue
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Conditional Use Permit(Home Occupation—Commercial Kitchen)
Staff recommends Approval
Planning Commission voted 10-0 to recommend Approval
6
3
3/27/2018
Kay F. Stanley
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• Commercial kitchen in the attached garage
• Products sold off site at local farmers' markets and grocery stores; no customers to the site
• Applicant and daughter sole operators
7
Evergreen Virginia, LLC Agenda Item
Council District Beach
Location 205 Yorktown Avenue 2
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Conditional Use Permit(Car Wash Facility)
Modification of Conditions(Motor Vehicle Sales&Automobile Repair Establishment)
Staff recommends Approval
Planning Commission voted 10-0 to recommend Approval
8
4
3/27/2018
Evergreen Virginia, LLC
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LLB.
• Incorporating adjacent 21,051 square-foot lot into existing automobile dealership site
• 3,453 square-foot addition to the existing repair garage (including new car wash)
• Car wash limited to service customers
9
Logan Virginia Properties, LLC Agenda Item
Council District Kempsville
Location 5441 Virginia Beach Boulevard 3
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Conditional Change of Zoning(B-2, A-12,& R-7.5 to Conditional B-2)
Staff recommends Approval
Planning Commission voted 10-0 to recommend Approval
10
5
3/27/2018
Logan Virginia Properties, LLC
..,_ -,
• 4.32 acre site to be developed with a 44,685
square-foot retail furniture store
• 125 parking spaces proposed
• Landscape buffer and fence along all
property lines adjacent to residential district
11
ACC Property Solutions, Inc. Agenda Item
Council District Beach
Location 1602 Cypress Avenue 4
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Conditional Rezoning(A-12 to Conditional R-55)
Staff recommends Approval
Planning Commission voted 10-0 to recommend Approval
12
6
3/27/2018
ACC Property Solutions, Inc.
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M [ r Proposed Dwelling V w
ran.w•. w,,, I • 2,117 square-foot lot currently zoned A-12
with a non-conforming single-family dwelling
ne . . • Proposing to replace with a 3-story single-
family dwelling
® ® • I • Requesting deviations to front and side yard
(q amr .wwa .r' ..weer mar •
raw •,, setbacks
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u' ,•,.e.i 'RESS AVENUE(60'; I►«d.) •
Mr
Ina.2O12040200035003O)
13
Kellye V. Gentry Agenda Item
Council District Princess Anne
Location West side of Vaughan Road 5
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Subdivision Variance to Sections 4.4(b)&(d)of the Subdivision Regulations
Staff recommends Approval
Planning Commission voted 10-0 to recommend Approval
14
7
3/27/2018
Kellye V. Gentry
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___ _ _ Lot C.2A - 1'
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v "'` `'' • Proposing to relocate ARP home site from
1 existing parcel along Vaughan Road to Lot
s
1 C-2A1 and develop with a single-family
.tmm,,9 dwelling
_ _ `_� • Subdividing 15.59-acre site into 2 parcels,
' Lots C-2A & C-2A1, both lacking access to a
public street and deficient in lot width
15
8
-4-
CITY MANAGER'S BRIEFINGS
FY2018-19 RESOURCE MANAGEMENT PLAN
PROPOSED 2018-19 RESOURCE MANAGEMENT PLAN and
CAPITAL IMPROVEMENT PROGRAM(Budget)
4:26 P.M.
Mayor Sessoms welcomed David Bradley, Director — Budget and Management Services. Mr. Bradley
expressed his appreciation to the City Council for their continued support and distributed a copy of
today's briefing which is attached and made a part of this record.
Mayor Sessoms thanked Mr. Bradley for the informative presentation.
March 27, 2018
City of
Virginia Beach
FY 2018 - 19 P
City Manager' s Budget
David A. Bradley
Director of Budget and Management Services
March 27. 2°18
Additional public Body worn camera
safety positions phase- in continues
11 Police - Support for multiple
4 Sheriff departments to
3 Commonwealth's Attorney accommodate increased
2.5 Fire workload
1 EMS Police radio encryption
1 Emergency Management project
Economic Development
Major projects in the Entertainment District
• Sports Center expansion • Dome site streetscapes
• Dome site music venue • Public pier development
• Central Beach and Convention
Parking
Continued investments in biomedical and cyber security
Oty Invests in Education
Implementation of full-day Kindergarten
continues
12 more schools in FY 2018-19
28 additional teaching positions
• Spread across elementary (8.6), middle
(4.4), and high (15)
25 additional staff positions
• 12 high school counselors
• 13 technology positions
Infrastructure Enhancements
Continued investment in storm water
Reallocation of ARP
$276M in School CIP funding over 6 years
$302M in Roadvays CIP funding over 6 years
Investment in Employees
City schools
• 2% merit increase for full-time based • 1 .5% cost of living increase
on mid-point of pay range • 0.5% STEP increase
2% lump sum for those at the end of
the pay range
• 2% general increase for part-time
Changes in leave Health insurance
• Birthday leave replaced with flexible • 1 % increase in employer and
holiday employee health insurance
Christmas Eve an official holiday premiums
FY 2018-19 Operating Budget Total
Estimated Appropriations
$2, 016, 895,381
City General Fund Debt
2.7%
City Capital Projects Public Safety
3.8% 12..2%
i
Ili Education
Planning. Public 1,-Vorks.
Public Utilities 45 . 3 %
15.7Uo
Convention Ft Visitor, Economic
Development
1.9%
Parks Et Rec, Libraries, Museums,
Cultural Affairs
4.5%
Human Services, Health, Housing
8% General Government
8.2%
Operating Budget by Appropriation Category
FY 2017-18 Total FY 2018-19 Total
City& Schools City & Schools %
Adjusted Budget Budget Change $ Change
Personnel 895,909,202 912,522,476 1.9% 16,613,274
Fringe Benefits 320,898,737 329,590,617 2.7% 8,691,880
Operating Expenses 466,607,291 475,417,682 1 .9% 8,810,391
Capital Outlay I Leases 27,881,494 30,347,587 8.8% 2,466,093
Debt Service 166,787,207 162,562,043 -2.5% (4,225,164)
Pay-As-You-Go 68,951,409 75,967,376 10.2% 7,015,967
Reserves 22,642,561 30,487,600 34.6% 7,845,039
Total 1,969,677,901 2,016,895,381 2.4% 47,217,480
Note: The City's Personnel does not include funding for proposed salary increases. This funding
is included in a Reserve account. The Schools proposed salary increase in included in
Personnel.
Operating Budget in Constant Dollars
$2.017B
2
v, 1 .9
0
°i 1.8 $1.76B
$1J138
1.7
1.6
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Fiscal Year
• Budget � Inflation Adjusted (Constant Dollars)
FY2018 - 19 Total
Estimated
Revenues
Other Revenue
7%
Utility Fees
8%
Waste Collection Fee
2%
Fund Balance State Revenue
Federal Revenue $495,222,921
24%
otel, Amusement, and Cigarette
3%
Restaurant Tax 44114x F Real Estate
4%
Business Licenses $583 , i58 , O59
2°Yo
Utility Taxes 0/O
2% )8
General Sales
3%
Personal Property
$161,598,379
8%
00
Revenues
Adjusted FY 2017-18 Proposed FY 2018-19
Total Revenues Total Revenues %Change
Real Estate 566,300,896 583,358,059 3.01%
Personal Property 155,933,379 161,598,379 3.63%
Consumer Revenues 284,482,628 292,491,685 2.82%
Permits, Fees, and Charges for Service 334,171,439 348,321,415 4.23%
Fund Balance 19,905,909 15,745,646 -20.90%
State Revenue 492,806,338 495,222,921 0.49%
Federal Revenue 116,077,312 120,157,276 3.51%
Total Operating Budget 1,969,677,901 2,016,895,381 2.40%
Major Tax and Fee
Changes in FY 2018 - 19
Cigarette Tax 75 cents .... 85(
Vehicle License Decal $30 $32
Storm Water 45.8 cents per day -- 48.3t
Waste Management $23 per month $24
Personal Property $4.00 - $4.10
xi
T Y s
1 cent Increase to
Personal Property
• 10 police officers
• Phase-in of body worn cameras
• Increased funding for Fire apparatus and equipment
• Investment in Sheriff's Office medical program
• Various technology enhancements
Average Household Impact
Impact of local taxes and fees based on median home
price ($242,300) and car values (2 x $8,200) as well as
average utility taxes and fees
2018 2019
$4,298 $4,390
Increase of $7.67 per month or 2.1 % annually
Relative Measures of Tax Burden
Per Capita Expenditures as a % of Per Capita Income
Virginia Beach 6.32%
Chesapeake 7.21%
Hampton 9.36%
Newport News 9.39%
Norfolk 8.84%
Portsmouth 9.44%
Suffolk 7.39%
„„„
Total FY 19 -24 CIP by Category
including Appropriations to Date
Resiliency
$295,543,524 (9%)
Sustainment, New Facility
Maintenance, Construction /
Rehabilitation.
Replacement Expansion
$1,647,295,821 (51%) $1,104,056,604
Equipment $39,638,235 (1%)
Site Acquisition 514,665,896 (1%) Technology $132,216,213 (4%)
CI P Projects
by Category
Appropriations Year 1 Years 2-6
Project Type to Date FY 19 FY 20-24
Schools $ 102,294,000 $ 47,461,000 5 228,935,000
Roadways 506,738,326 59,742,704 242,457,924
Buildings 119,472,238 80.675,157 112,347,820
Parks and Recreation 63,864,166 9,538,033 45,909,657
Utilities 245,963,539 32,740,000 197,530,000
Storm Water 191,415,358 49,574,011 248,591,867
Coastal 66,244,970 32,675,000 70,698,933
Economic and Tourism Development 135,858,973 89,714.831 123,873,587
information Technology 46,204,756 34,520,028 82,374,355
Total CIP $ 1,484,056,326 Anni 396,640,824 grik 1,35 143
. 9 cent real estate dedication
15 cent
ARP
• Biomedical and cyber
security initiatives
• Lynnhaven corridor
� .-''''' improvements
• Planning gets new staff
�� for enhanced service
• New ERP system to maintain
City' s financial strength
• New scheduling and timekeeping
system
• IT adding FTEs while saving money
• Going to bid on $ 194M in roadway
projects
• 3 bridge replacements
• Pungo Ferry, Laskin Road , Sandbridge
Road
• 18 roadway projects
• Centerville Turnpike Phase II
• Elbow Road Extended Phase Il - B
• Princess Anne Road Phase VII
• Laskin Road Phase I -A
• Initial dredging of the
following neighborhood
projects:
• Bayville Creek
• Old Donation
• Shadowlawn
• Harbor Point
• Neighborhood storm water
projects continue
• Ashville Park
• Princess Anne Plaza
• Windsor Woods
• Sherwood Lakes
• Major Oceanfront projects :
• Sports Center
• Dome Site Music Venue
• Central Beach and Convention
Parking
• Public pier
• New and renovated Aquarium
facilities
i
it x y 4� 4
• Implementation of body
worn cameras continues
"4
• Additional Police officers, ,A q
EMS safetyposition, Fire, ,,,
Sheriff deputies for medical ASa
,.
program ,..
}
:. , �°,, Police radio encryption
a ,
6 project
s
4 :41.
c • Fort Story Engine Company
k
• Housing Resource Center opens
• Cultural Affairs strives for diversity
in the arts
• Dental program serves low-
income youth
• Ten new Human Services
positions
• Expand summer youth program
s Full-day Kindergarten expansion continues
12 more schools in FY 2018-19
• 28 teaching positions to reduce class
sizes
a 13 technology positions to continue
technology initiative
• 12 new high school counselors
• Technology investments to improve services
and citizen access
• Case management software
• Online library card registration
• Publicinput . com
• FOIA software
• Accela legislative platform
• Funding for Customer Relationship
Management platform
• Additional $75M for storm water
projects
• City Hall replacement
• Additional facility management staffing
• Sand replenishment on three
beaches
• Chesapeake, Croatan ,
Cape Henry
Schedule of Workshops and
Public Hearings
March Budget Presentation to April Public Hearing
27 Council 25
April Council Workshop May Council Workshop
3 1 Public Hearing
April Council Workshop May Reconciliation Workshop
May Council Votes on Budget
April Council Workshop
17 15
April Council Workshop
24
-5-
CITY MANAGER'S BRIEFINGS
WASTE MANAGEMENT ENTERPRISE FUND
5:14P.M.
Mayor Sessoms welcomed Mark Johnson, Interim Director — Public Works. Mr. expressed his
appreciation to the City Council for their continued support and distributed a copy of today's briefing
which is attached and made a part of this record.
Mayor Sessoms thanked Mr. Johnson for the informative presentation.
March 27, 2018
3/27/2018
City Council `oil).
FundingUpdate 44.,p
Public Works
Waste Management Enterprise
Fund
Mark A. Johnson, P.E.-Interim Director of Public Works
March 27, 2018
u„
4-,k fr
1
1
Agenda
•Overview
•Efficiencies to Control Cost
■FY19 Remaining Issues and Needs
■Summary
■Discussion
P -le
2
7
1
3/27/2018
waste Management Services
FY18 Budget-$40,511,307 „ •
157 FTE's for the division - .
�,Automated trash collection
• Over 30,000 households serviced per collection day; 123,000 households per
Om week
• 136,000 tons of MSW per year or 1.10 tons per household
• 6.43 million automated black container stops per year
Bulky item pickup r. _`=
• 8,000 tons per year _ °�wok l
• 80 work orders per truck
Curbside yard debris `�.
• 44,000 tons collected per year
• Seasonal variation from 50 to 400 tons per day
• 18 trucks on average per day; ranges from 12 to 24 depending on the season
125 FTE's for trash collection
3
Waste Management Services
Recycling collection kw .__ V.
'• 33,000 tons per year ,, t
ik
• Four drop-off sites or
` -# .
Communications & Outreach . 0 -
• KAB and VBCCC
City's Facebook Page rM14• Twitter �
41� KEEP VIRGINIA BEACH
c.� )r BEAUTIFUL
Customer Service Call Center "• Inc"
• 129,567 Phone inquiries `.,
• 61,598 E-mail inquiries w
4
2
3/27/2018
Virginia Beach Landfill & Resource
Recovery Center
andfill operation and Household Hazardous Waste (HHW)
• 15FTE's
• 168,000 visitors year; 20,000 tons
• 6,622 HHW visits
• Mulch operation — 10,000 cy of woody debris
• Metal recycling — 1,322 tons; Realized revenue $107,049
• Landfill Gas facility realized revenue-$ 64,980
• Electronics recycling — 47 tons
10• Other recycling services — cooking oil, batteries, tires, dirt,
oyster shells, pallets, concrete
4
Community Assistance
id:— 'N . -.
1 . ~
1 �. Q. ,
1 0- .4
a ,'� Maw L.. d'. _.. ,..
6
3
3/27/2018
Efficiencies to Control Cost
•Automation-Route Optimization
• $1.1 M/year cost reduction
• $2.75M reduction in equipment inventory
• Reduced routes from 38 to 29 and 11 .5 FTEs
•Bulk Item collections
• Switching from 2 to 1 operator per truck
• Reduced 6 FTE's in FY 17
•Yard Debris collections
• Yard Debris routing and on-demand service
• Yard Debris processing contract
• Increased collection efficiency by converting 3 FTE
Itpositions in FY17 to contract support for peak seasons
•Grand total of 29.5 FTEs reduced since 2009
• Implementation of Drive-Cam—Reduction in property
damage liability claims and improved safety
7
Service Comparison with Other
Municipalities
Service Provided ye.Beach Suffolk Richmond .. Portsmouth Alezandrie
Trash Collection(95 gal weekly) 1 t/- ✓ 1 ✓
Yard Debris(weekly) ` +f 0/ �/ ✓ 1
Y 1,Recycling(95 gal every other weekly I. 1 A y 1 1 1y
Bulky Item(No additional Fee) X 1 ✓ 1' io( X le"
Yard Debre Container Rental i r r I X X X X X
Recycling Drop-off Centers . `1 / X X '✓ Y / /
Landfill/Convenience Center 11111179111 J K/ X �•s(/ X ./
Y/
Household Hazardous Waste , I�� .Y '✓ • • '✓
Electronics Recycling . " vI A ii X air' ilt 77Oh V i
Metals Recycling IlLid4111111•Mill6A111161 1.111111.1111
Cooking ro j MEE
SC X -
Yard Debra Drop-off 'Mulch Processing MO
and.. XSr _-_-
4
4
3/27/2018
Fee Comparison with Other
Municipalities
SAIf -1.ID15 I
sao
slim
sun
snm
ssa
9
9
FY19 Remaining Issues and
Needs
FY18 FY19
•Sustain current Revenue
services-Landfill WM Fee $33,672,000 $33,948,000
• No General Fund General Fund $5,712,041 $0
support Support
Other Revenue $1,127,266 $1,247,652
• Equipment Total Revenue $40,511,330 $35,195,675
Replacement Expenses
Salary&Benefits $9,748,483 $9,993,597
SPSA $13,513,500 $9,360,000
Operating $12,055,050 $12,372,343
(including TFC)
Capital Outlay $2,205,568 $1,500,000
Transfers $2,988,729 $2,986,789
Total Expenses $40,511,330 $36,212,729
Difference $-1,017,054 io
10
5
3/27/2018
Proposed Fee Increase
$1 =$1.476 million in revenue
• Covers current services (Landfill) that in FY18 were
covered by General Fund support
• Partially funds equipment replacement in FY19
• Eliminates General Fund support
• However, $1 increase is not a long term solution 0
11 '
11
•
FUNDING SOURCES
smiii....0110
S35emom ....
5g004000
5.15,424.400
g3 533b>t00D
5.0.44110
124..4
SA4C44 3
5$0:4410
E: j:
IDa U RC 2le Risepee
s1040 SI4.m MI6 53315 3L3[ 5900 S1i0D MCC
Budget included in Gi $$4L455A01 $e2913922 $42,357,309 $4$525A03 $44.893.efl5 $30511330 53471L779
J
6
3/27/2018
Five Year Forecast with No Fee Increase
FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024
Salaries&Benefits $ 9,993,597 $10,193,469 $10,397,338 $10,605,285 $10,817,391 $11,033,739
SPSA Disposal $ 9,360,000 $ 9,385,000 $ 9.410,000 $ 9,435,000 $ 9,460,000 $ 9,485,000
Tidewater Fibre(TFC)Recycling Services $ 4,207,720 $ 4,291,874 $ 4,377,712 $ 4,465,266 $ 4,554,571 $ 4,645,663
Other Operating Expenses $ 8,164,623 $ 8,327,915 $ 8,494,474 $ 8,664,363 $ 8,837,651 $ 9,014,404
Capital Outlay $ 1,500,000 $ 1,530,000 $ 1,560,600 $ 1,591,812 $ 1,623,648 $ 1,656,121
W&S Billing $ 766,010 $ 781,330 $ 796,957 $ 812,896 $ 829,154 $ 845,737
Debt Service(Landfill) $ 245,158 $ 245,158 $ 237,831 $ 230,504 $ 223,176 $ 215,849
Indirect Costs(Maximus Report $ 1,975,621 $ 2,015,133 $ 2,055,436 $ 2.096 545 $ 2,138,476 $ 2,181,245
Total Expenses $36,212,729 $36,769,881 $37,330,348 $37,901,671 $38,484,067 $39,077,757
Proposed Rate Increase $ - $ - $ - $ - $ - $ -
Monthly Rate $ 23.00 $ 23.00 $ 23.00 $ 23.00 $ 23,00 $ 23,00
Waste Management Fee $33.948,000 $33,948,000 $33,948,000 $33,948,000 $33,948,000 $33,948.000
• Transfer to.the General Fund $ - $ - $ - $ - $ - $ -
Other Revenue $ 1,247,652 $ 1,241,816 $ 1,256,262 $ 1,270,997 $ 1,286,028 $ 1,292,343
Total Revenue $35,195,675 $35,189,839 $35,204,285 $35,219,020 $35,234,051 $35,240,366
Rev Over/(Under) $(1,017.054) ($2,804042) ($3,374,543) ($3,956,100) ($4.548,935) ($5.162,288)
Required 25%Fund Balance $9,053,182 $9,192.470 $9,332,587 $9,475,418 $9,621,017 $9,769,439
Undesignated Fund Balance $1,028,336 ($551,706) ($2,677,769) ($5,360,420) ($8,610,436)($12,447,826)
Fund Balance/Current Yr.Exp as% 3% -2% -7% -14% -22% -32%
13
13
Five Year Forecast with Proposed Fee
Increase and Reduced Equipment Funding
FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024
Salaries B Benefits $ 9,993,597 $10,193,469 $10,397,338 $10,605,285 $10,817,391 $11,033,739
SPSA Disposal $ 9,360,000 $ 9,385,000 $ 9,410,000 $ 9,435,000 $ 9,460,000 $ 9,485,000
Tidewater Fibre(TFC)Recycling Services $ 4,207,720 $ 4,291,874 $ 4,377,712 $ 4,465,266 $ 4,554,571 $ 4,645,663
Other Operating Expenses $ 8,164,623 $ 8,327,915 $ 8494474 $ 8,664.363 $ 8.837,651 $ 9.014.404
Capital Outlay $ 1,500,000 $ 1,530,000 $ 1,560,600 $ 1591,812 $ 1,623,648 $ 1,656,121
W&S Billing $ 766.010 $ 781,330 $ 796,957 $ 812,896 $ 829,154 $ 845,737
Debt Service(Landfill) $ 245,158 $ 245,158 $ 237,831 $ 230,504 $ 223,176 $ 215,849
Indirect Costs(Maximus Report) $ 1,975.621 $ 2,015,133 $ 2,055.436 $ 2.096,545 $ 2,138,476 $ 2,181,245
Total Expenses $36,212,729 $36,769,881 $37,330,348 $37,901,671 $38,484,067 $39,077,757
Proposed Rate Increase $ 1.00 $ - $ - $ - $ - $ -
Monthly Rate $ 24.00 $ 24.00 $ 24.00 $ 24.00 $ 24,00 $ 24.00
Waste Management Fee $35,424,000 $35,424,000 $35,424,000 $35,424,000 $35,424,000 $35,424,000
Transfer to.the General Fund $ - $ - $ - $ - $ - $Other Revenue $ 1,247,652 $ 1,241,816 $ 1,256,262 $ 1,270.997 $ 1,286.028 $ 1,292,343
Total Revenue 36,671,676 ••36,665,840 $36,680.286 •36,695,021 $36,710.052 $36,716,367
Rev Over/(Under) $458,947 .ns 650) ($1, ,90)
Required 25%Fund Balance $9,053,182 $9,192,470 $9,332,587 $9,475,418 $9,621,017 $9,769,439
Undesignated Fund Balance $2,504,337 $2,400,296 $1,750,234 $543,584 ($1,230,431) ($3,591,820)
Fund Balance/Current Yr.Exp as% 7% 7% 5% 1% -3% -9%
14
14
7
3/27/2018
Optimal Equipment and Funding
FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024
• Salaries&Benefits $ 9,993,597 $10,193,469 $10,397,338 $10,605,285 $10,817,391 $11,033,739
SPSA Disposal $ 9,360,000 $ 9,385,000 $ 9,410,000 $ 9,435,000 $ 9,460,000 $ 9,485,000
Tidewater Fibre(TFC)Recycling Services $ 4,207,720 $ 4,291,874 $ 4,377,712 $ 4,465,266 $ 4,554,571 $ 4,645,663
Other Operating Expenses $ 8,164,623 $ 8,327,915 $ 8,494,474 $ 8,664,363 $ 8,837,651 $ 9,014,404
Capital Outlay $ 2,700,000 $ 2,754,000 $ 2,809,080 $ 2,865,262 $ 2,922,567 $ 2,981,018
W&S Billing $ 766,010 $ 781,330 $ 796,957 $ 812,896 $ 829,154 $ 845,737
Debt Service(Landfill) $ 245,158 $ 245,158 $ 237,831 $ 230,504 $ 223,176 $ 215,849
Indirect Costs(Maximus Report) $ 1,975,621 $ 2,015,133 $ 2,055,436 $ 2,096,545 $ 2,138,476 $ 2,181,245
Total Expenses $37,412,729 $37,993,881 $38,578,828 $39,175,120 $39,782,985 $40,402,654
Proposed Rate Increase $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Monthly Rate $ 24.00 $ 25.00 $ 26.00 $ 27.00 $ 28.00 $ 29.00
Waste Management Fee $35,424,000 $36,900,000 $38,376,000 $39,852,000 $41,328,000 $42,804,000
Transfer to.the General Fund $ - $ - $ - $ - $ - $ -
Other Resenue $ 1,247,652 $ 1,241,816 $ 1,256,262 $ 1,270,997 $ 1,286,028 $ 1,292,343
Total Rerenue $36,671,676 $38,141,841 $39,632,288 $41,123,024 $42,614,056 $44,096,372
;I Rev Oyer/(Under) ($741053) $147,960 $1,053,460 $1,947,904 $2,831,070 $3,693,718
Required 25%Fund Balance $9,353,182 $9,498,470 $9,644,707 $9,793,780 $9,945,746 $10,100,663
Undesignated Fund Balance $1,304,337 $1,452,297 $2,505,757 $4,453,661 $7,284,731 $10,978,449
Fund Balance/Current Yr.Exp as% 3% 4% 6% 11% 18% 27%
15
w
f
summary
• Fee increase will fund current level of service
(including landfill)
• Fee increase will fund reduced equipment
replacement program for FY19; but will
increase the replacement cycle
•Additional fee increases will be needed in
future years in order to sustain the Waste
Management Program
2/1„:._.-
Future revenue requirements are dependent
on SPSA budgets
16
8
3/27/2018
di 17
17
■
Current E• ui . ment-Collections
Automated 2 1 3
Single Axle
Automated 29 11 40
Tandem
Rear Loader 2 1 3
Single Axle
Rear Loader 16 6 22
Tandem
Boom 7 5 12
Pull 4 1 5
Pup 2 1 3
Box 1 0 1
Total 63 26 89
18
18
9
3/27/2018
Current Equipment-Landfill
Equipment Type Total
Dozers/Loaders 7
Compactors/Excavators/ 3
Grinders
Heavy Duty Trucks 5
Maintenance Trucks 5
Tractors 11
Landfill Pumps 5
i Pick-Ups 3
Total 39
Ai 19
19
Equipment Replacement Schedule
Funding of $1 .5 million
tali=
Budget IF
,Waste Colle << ndfiU.,--
FY18 $1.5 million 5-Automated vehicles No equipment
replaced
FY19 $1.6 million 4-Tandems,2-Rear Loaders, No equipment
1-Grapple Truck replaced
FY20 $1.6 million 3-Autmoation vehicles; 1-Rear 1-Wheel
Loader Loader
FY21 $1.5 million 3-Automation vehicles, 1-Rear 1-Water Truck,
Loader 1-Service
Truck,-1-Pump
- µ 20
2 P
10
3/27/2018
SPSAAsh and Residue Impact
Cost Per Net SPSA VP Castor landfill Total Cost of General Fund
proposed
Fiscal Year Waste
Ton Disposal Cost Operation Disposal j Support Management
FY 13v — —
: . Ei
FY 14 I
FY15 [,�,,.r,I�Illr,l/_."—_
Duly 1.0eF 31,2O15 ii
FT 16 ' S6S� S 12,663,61 5 1,140,1E 5 14,00 _i r S 5,166,554
Jan 1June47016.- 5125;
FY 17__ _ _ Slr1S_S_IMS.9. S.. 7;009,755,.S .18 899..5_S 72067 _
UoM 1.Ian 74,2018 i -_-_ -
FY18 S77S; 5 13,513,51%1 5 1,914,16� 5 15427,6671 5 5,717,0411 5 797,567t
1an 2S June 30, . i I 1
20181 S65• I i
FYI?" $1.5 5 90fi 01, < )1e;,4r4 S 17 5,',i,4f.G 5 7.149 464
21
Landfill Life/Capacity
• Phase I —current active cell
• Can be used through December 31,2020
• CIP 3-047 funds capping costs
• Phase 2A
• Built capacity of 960,000 CY ready for use
• 22 years of capacity based on current fill rate
• Capping will be required once filled
• Phase 4
• Permitted capacity of 2,415,600 CY
• Not built and not funded
22
22
11
3/27/2018
SPSA (continued)
• SPSA 2.0 Use and Support Agreement(cont.)
■ Current proposal is$20/resident visit—charged to the member
community
• Projected cost if enacted could be as much as$450,000/year @
$20/visit(not funded)
■ Provides for charges for residential visits to SPSA facilities
• Tentatively scheduled to begin July 1,2018
23
23
12
-6-
CITY MANAGER'S BRIEFINGS
LONG TERM DEBT- Update
5:38 P.M.
Mayor Sessoms welcomed Patti Phillips, Director—Finance. Ms. Phillips. expressed his appreciation to
the City Council for their continued support and distributed a copy of today's briefing which is attached
and made a part of this record.
Mayor Sessoms thanked Ms. Phillips for the informative presentation.
March 27, 2018
3/27/2018
City of Virginia Beach
Debt Management
City Council Briefing
March 27, 2018
0
Today's Agenda
Status of Outstanding Debt
Rating Agencies
Comparisons
Policy Indicators — FY 2019 Proposed
CIP
Pension Costs & Other Liabilities
1
1
3/27/2018
Categories of Virginia Beach Bonds
Tax Supported Debt
• General Obligation Bonds-full faith and credit-highest rating
• Charter bonds-$10M+retired principal($62.2M Calendar 2018)max
authorized each year
• Referendum Bonds
✓ State Literary Fund
• Appropriation Backed Debt-subject to annual appropriation(not full faith
and credit)&usually rated lower(1-to-2 notches)than G.O Bonds
✓ Lease-Purchase Agreements
✓ Public Facility Revenue Bonds(PFRBs)
Fee & Self Supported Debt
• Agricultural Reserve Program
• Enterprise Revenue Bonds-self supporting(not full faith and credit)
✓ Water and Sewer
✓ Storm Water Bonds
2
Summary of Outstanding Indebtedness
Fiscal Year Ended June 30
Amount(in millions)
Description Source FY18 FY17 FY16 FY15
Tax Supported
General Obligation Bonds
Schools Full Faith&Credit $263.8 $270.1 $300.1 $292.3
General Government Full Faith&Credit 336.1 325.5 355.1 363.0
Public Facility Revenue Bonds Annual Appropriation 332.2* 331.4 340.4 368.7
Agriculture Reserve Program Full Faith/Strips 46.1 46.1 42.4 41.8
Fee Supported
Revenue Bonds
Water&Sewer Fees&Charges 202.2 211.1 218.9 192.9
Storm Water Fees&Charges 41.8 43.5 45.2 46.9
Total Debt $1,222.2 $1,227.7 $1,302.1 $1,305.6
Less:Revenue Bonds&ARP Self-su...rtin fees 290.1 300.7 306.5 281.6
Net Tax Supported Debt** $932.1 $927.0 $995.6 51,024.0
Authorized but Unissued Tax
Supported Debt $297.5** $398.5 $274.6 $174.8
* Includes$33.4 million in Series 2018A Public Facility Revenue Bonds to be issued March 28,2018.
**Used in Debt Guidelines calculations.
3
2
3/27/2018
Net Outstanding Tax Supported Debt- FY18
Public Facility
General Revenue Bonds
Obligation Bonds (PFRB)(in
Project Category (GO)(in millions) millions) Total %of Total
Building&Assets $90.41 $18.50 $108.91 11.68%
Coastal 3.98 0.0 3.98 0.43%
Economic&Tourism
Dev. 9.54 124.49 134.03 14.38%
Information
Technology 5.13 13.92 19.05 2.04%
Parks& Recreation 31.44 44.99 76.43 8.20%
Roadways 195.60 32.92 228.52 24.52%
Schools 263.86 41.96 305.82 32.81%
Town Center 0.0 55.37 55.37 5.94%
Total $599.96 $332.15 $932.11 100.00%
4
Debt Service (in millions)
FY18 Actual Principal & Interest by Fund
CBD Water
General South Open & Storm
Debt Type Fund Schools • TIP TIF ARP Space Parking Sewer Wate
GO $37.8 $39.2 $0.3 $3.7 $0.6
PFRB 11.9 2.9 3.5 18.4 7.8 1.9 0.6
ARP 2.4
Revenue 17.9 3.4
Total $49.7 $42.1 $3.8 $22.1 $7.8n? $2.5 $0.6 $17.9M1
Total Debt Service FY 2018:$152.3 million
Debt Type: Fund:
GO=General Obligation Bonds ARP=Agricultural Reserve Program
PFRB=Public Facility Revenue Bonds CBD=Central Business District
ARP=Agricultural Reserve Program Treasury Strips P&R =Parks&Recreation
TIP=Tourism Investment Program
5
3
3/27/2018
Debt Service (in millions)
FY18 Actual Principal & Interest by Fund
Water&Sewer $17.9 Storm Water $3.4 2%
12%
Parking $0.6 0% General Fund $49.7
Open Space $2.5 2% 33/
ARP $2.4 2% �� `,
COB South TIF '
$7.8 5%
TIP $22.1
14%
111111
Parks&Recreation
$3.8 2%
Schools $42.1 28%
Total Debt Service FY 2018: $152.3 million
6
Summary of Bond Activity
Fiscal Year 2018
Amount Total Interest
(in millions) Cost
New Bonds Issued(Series $101.0
2018A):
General Obligation(GO) $ 67.6 2.886%
Public Facility Revenue $ 33.4 2.909%
GO Bonds Refinanced $ 71.5 2.301%
(Refunded)
Refunding Savings $8.3 M over 15 years
Bonds Retired $99.6 M GO,PFRB,
Water& Sewer, &
Storm Water
7
4
3/27/2018
Rating Agency Comments
• Strong economy
• Strong financial policies and practices
• Conservative management approach
• Extremely strong capacity to control expenditures
and meet financial commitments; strong budget
flexibility
• Very strong liquidity
• Favorable interest rates whenever the City
borrows
8
Virginia Beach Ratings
Water
& Storm
Rating Agency GO PFRB Sewer Water
Standard & Poor's AAA AA+ AAA NA
Moody's Aaa Aa1 Aa1 Aa2
Fitch AAA AA+ AAA AAA
• General Obligation Bonds(GO)rated triple-A with stable outlook nine
consecutive years by all three major ratings agencies: Fitch AAA,
Moody's Aaa,and Standard& Poor's AAA
• Public Facility Revenue Bonds(PFRB): Fitch AA+, Moody's Aa+,and
Standard&Poor's AA+(l-to-2 notches below GO debt due to risk of
non-appropriations)with stable outlook
9
5
3/27/2018
Fitch's 2018 Credit Rating Acknowledges City's Measures to
Address Recurrent Flooding & Sea Level Rise
"The city is undertaking a comprehensive study on
the impact of sea level rise (SLR) and has dedicated
approximately $360 million in the current CIP for
improving flood control and protection via various
storm water improvements, dredging and beach
restoration. The cost of the SLR program may be
substantial, but it will likely be financed and
developed over an extensive period, allowing the city
the ability to balance this investment against other
general governmental needs and its available
economic resources. "
10
Summary of Debt Management Policies
Debt Indicator Description Established Guidelines
Annual Debt Service to General
Government Expenditures No greater than 10%
Overall Net Debt to Estimated
Full Value No greater than 3.5%
Overall Net Debt Per Capita No greater than $3,000
Overall Net Debt Per Capita to No greater than 6.5%
Per Capita Personal Income
11
6
3/27/2018
History of Changes in Debt
Guidelines
Debt Service as a
Percent of General
Government
Debt Per Capita Expenditures
Established 1992 $1,300 12.5%
1998 $1,500 12.5%
2005 $2,400 10.0%
2012 $2,800 10.0%
2015 $3,000 10.0%
12
KEY Debt Indicators*
cmFY-19 FY-20 FY-21 FY-22 FY-23 FY-24
Overall Net Debt(in billions$) 0.932 1.03 1.15 1.15 1.14 1.12 1.09
Net Debt Per Capita($)
Standard:No greater than 2,051 2,264 2,507 2,506 2,468 2,406 2,330
$3,000
Overall Net Debt to Estimated
Full Value of Taxable Real 1.7% 1.8% 2.0% 1.9% 1.9% 1.8% 1.7%
Property
Standard:No greater than 3.5%
Overall Net Debt Per Capita to
Per Capita Personal Income 3.8% 4.0% 4.3% 4.2% 4.1% 3.9% 3.7%
Standard:No greater than 6.5%
Annual Debt Service to General
Government Expenditures 8.1% 8.4% 0 0 0 0
Standard:No greater than 10% 9.0% 9.5% 9.7% 9.7% 9.0%
*FY-18 estimated,FY-19 through FY-24 projected
13
7
3/27/2018
Virginia Beach Historical& Projected
Net Debt Per Capita Compared to Guideline
$3,500
$3,000 per capita
$3,000
Projected
$z,soo
$z,000
$1,500
$l,000
$500
So
FY-10 FY-11 FY-12 FY-13 FY-14 FY-15 FY-16 FY-17 FY-18" FY FY FY
19" 20"" 21•" 22"" 23"" 24"
Debt per Capita 2,256 2,271 2,244 2,162 2,256 2,258 2,195 2,034 2,051 2,264 2,507 2,506 2,468 2,406 2,330
Limit 2,400 2,400 2,800 2,800 2,800 2,800 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000
* Estimated
**Reflects projections from proposed FY19/FY24 Budget/CIP
14
Virginia Beach Historical& Projected
Debt Service to General Government Expenditures Compared to
Guideline
12.0%
0
r Projected
0 1o.o%
W• 8.0%
E
ii 6.0%
l7
t� 4.0%
2.0%
o.o%
WHWJJW1
FY- FY- - FV- FY-
"" 23"" 24"
r Debt Service to General Gov 8.5% 8.4% 8.4% 8.2% 8.7% 8.6% 8.2% 8.1% 8.4% 9.0% 9.5% 9.7% 9.7% 9.0%
Expenditures
=-Limit 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0%
* Estimated
**Reflects projections from proposed FY19/FY24 Budget/CIP
15
8
3/27/2018
Total Direct Debt Per Capita*
Hampton Roads Cities
8,000
000 6,832
7,6.000 5,598 5,742
5,000
4,000
2,724 2,824
3,000 2,470 2,596
2,000
1,000
Hampton Virginia Beach Chesapeake Newport News Norfolk Portsmouth Suffolk
(Aa1/AA+/AA+) (Aaa/AAA/AAA) (Aal/AAA/AAA) IAa1/AA+/-1 (Aa2/AA+/AA+) (Aa2/AA/AA) lAa1/AAA/AAA)
•All tax-supported debt,including GO bonds,appropriation obligations,and special-tax bonds such as sales,personal income,and gas tax bonds,
as well as enterprise and revenue supported debt.
Source: 5&P--CREDITSTATS DIRECT:Most recent available data 12016/20171
16
Total Direct Debt Per Capita*
Selected Triple-Triple A Cities**
5000
8,128
8,003
7,374
7,000
6,003
5
4,786
,000 4,997
4,000 3,328 3,498
3,ODD 2,596
2,200
2,000 1,798
1,313
1,000
Durham,NC Greensboro, Chandler,AZ Arginia Beach,Winston-Salem, Raleigh,NC Scottsdale,AZ Charlotte,NC Seattle,WA Denver City&
NC VA NC Co.,CO
•All tax-supported debt,including GO bonds,appropriation obligations,and special-tax bonds such as sales,
personal income,and gas tax bonds,as well as enterprise and revenue supported debt.
••Population approximately 250,000 to 850,000
Source: S&P--CREDITSTATS DIRECT;Most recent available data(2016/2017)
17
9
3/27/2018
Summary of Proposed FY 2018-19 6-Year CIP*
(in millions)
apital Projects 6-Year Amount %of Program
Buildings and Assets $ 193.0 11.0%
Coastal 83.4 4.8%
Economic and Tourism Development 213.6 12.2%
Information Technology 96.9 5.5%
Parks and Recreation 55.4 3.2%
Roadways 302.2 17.3%
Schools 276.4 15.8%
Sewer Utility 151.7 8.7%
Storm Water 298.2 17.0%
Water Utility 78.6 4.5%
Total Capital Projects $ 1,749.4 100.0'
* Excludes prior-years'appropriations supporting the CIP totaling$1.48 billion.
18
Summary of Proposed FY 2018-19 6-Year CIP*
(in millions)
Water Utility Buildings and Assets
$78.55 4% $193.02 11%
Stores Water Coastal$83.37 5%
$298.17 17%
Economic and
Tourism
Development
Sewer Utility -- $213.59 12%
$151.72 9%
Information
Technology
$96.89 6%
Parks and Recreation
Schools$276.40 $55.45 3%
10%
Roadways$302.20
17%
Total FY 2018-19 6-Year CIP: $1,749.4 billion (excludes prior years'
funding of$1.48 billion)
19
10
3/27/2018
Financing Source % of Proposed FY 2018-19
6-Year CIP*
General Water&
Financing Source Government Sewer Storm Water Total
ash/Fund Balance/
ether 38.0'•EE
eneral Obligation Bonds 33.9% 0.0% 0.0% 23.6%
Public Facility Revenue
Bonds 23.4% 0.0% 0.0% 16.3%
►torm Water Revenue
Bonds 0.0% 0.0% 62.0% 10.6%
ater&Sewer Revenue
Bonds 0.0% 25.2% 0.0% 3.3%
Total Bond Financing 57.39/. 22 62.0%IMM
Total 100.0% 100.0% 100.0% 100.0%
* For Years 1-6 of the CIP(excludes prior years'appropriations).
20
Summary of Projected Outstanding Tax Supported Debt
(in millions)
FY-18* FY-19 FY-20 FY-21 FY-22 FY-23 FY-24
Beginning Outstanding
Debt $927.04 $932.12 $1,033.49$1,149.77 $1,154.59 $1,142.56 $1,119.22
Less Debt Retired 88.99 92.44 102.36 107.88 111.61 111.69 110.29
Less Debt Refunded 78.46
Add Refunding 71.53
Add Proposed New Debt 101.00 193.82 218.64 112.71 99.57 87.78 79.95
nding Outstanding
Debt $932.12 $1,033.49 $1,149.77$1,154.59$1,142.56$1,118.65 $1,088.3
Population 454,448 456,538 460,748 462,868 464,997 467,136 469,285
Debt per Capita 2,051 2,264 2,507 2,506 2,468 2,406 2,330
*FY 18 estimate per Department of Finance as of June 30,2018.FY 19/FY24 based on Proposed
FY19/FY24 CIP.
21
11
3/27/2018
(2018 Not Available)
Pension Costs and Other Liabilities
2017 Annual Employer June 30, 2017 Pension
Costs (millions): Liability (millions, % funded):
City $43.9 City $411.1 78%
Schools 60.7 Schools 740.8 70%
Total* $104.6 Total 1$1,151.91
*50%of payments go to unfunded liability
Retiree health care liability: estimated at $68 million for City and
Schools, 50%funded (retiree payments made from operations $11.7
M; ARC is $9.8 M)
Pooled benefits liability: estimated at $165 million for LODA (Line of
Duty Act), teachers' health insurance credit, group life insurance,
VLDP (Virginia Local Disability Plan)
22
In Summary
Conservative financial management key to Triple-A
Flexibility in reacting to challenges, emergencies and
changing priorities
Quality of reporting and budgeting
Meeting obligations
PRAG: Divergence from City's debt management policies
could impact credit rating
Annually review status of debt indicators based on actual
results for population, general government expenditures,
and debt service costs to re-estimate future projections
for debt indicators
Conservative approach to estimating debt indicators
creates some capacity, but not overstate future capacity
23
12
-7-
CITY MANAGER'S BRIEFINGS
INTERIM FINANCIAL STATEMENT
Due to time constraints, this presentation will be rescheduled
March 27, 2018
-8-
ADJOURNMENT
Mayor William D. Sessoms, Jr., DECLARED the City Council Meeting ADJOURNED at 5:59 P.M.
Amanda Finley-Barnes, MMC
City Clerk
March 27, 2018