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Home My WebLink AboutMARCH 31, 1998 MINUTES "WORLD'S LARGEST RESORT CrrY" CITY COUNCIL MAYOR MEYERA E. OBERNDORF, At-Large VICE MAYOR WILLIAM D. SESSOMS, JR., At-Large JOHN A. BAUM, Blackwater Borough LINWOOD O. BRANCH, III, Virginia Beach Borough WILLIAM W. HARRISON, JR., Lynnhaven Borough HAROLD HEISCHOBER, At-Large BARBARA M. HENLEY, Pungo Borough LOUIS R. JONES, Bayside Borough REBAS S. McCLANAN, Princess Anne Borough NANCY K. PARKER, At-Large LOUISA M. STRAYHORN, Kempsville Borough JAMES K. SPORE, City Manager LESLIE L. LILLEY, City Attorney RUTH HODGES SMITH, CMC/AAE, City Clerk SPECIAL FORMAL SESSION CITY COUNCIL CHAMBER March 31, 1998 12:00 NOON I. CALL TO ORDER - Mayor Meyera E. Oberndorf II. READING OF MAYOR'S CALL TO SPECIAL SESSION III. ROLL CALL OF CITY COUNCIL IV. CITY MANAGER'S PRESENTATION 1. FY 1998-1999 RESOURCE MANAGEMENT PLAN (OPERATING BUDGET AND CAPITAL IMPROVEMENT PROGRAM) E. Dean Block, Director, Management Services V. ADJOURNMENT M I N U T E S VIRGINIA BEACH CITY COUNCIL Virginia Beach, Virginia March 31, 1998 Mayor Meyera E. Oberndorf called to order the SPECIAL SESSION of the VIRGINIA BEACH CITY COUNCIL on Tuesday, March 31, 1998, at NOON in the City Council Chamber, City Hall Building, for the PRESENTATION of the FY 1998-1999 RESOURCE MANAGEMENT PLAN. Council Members Present: John A. Baum, Linwood 0. Branch, III, William W Harlison, Jr., Harold Heischober, Barbara M. Henley, Louis R. Jones, Reba S. McClanan, Mayor Meyera E. Oberndorf, Nancy K. Parker, Vice Mayor William D. Sessonts, Jr. and Louisa M. Strayhorn Council Members Absent: None - 2 - Item II. ITEM # 43405 The Mayor read the CALL TO SPECIAL FORMAL SESSION. "HONORABLE MEMBERS OF CITY COUNCIL In accordance with the City Charter, Section 3.06, the City Code, Section 2-21, and by the authority vested in me as Mayor of the City, I hereby call a SPECIAL SESSION of the VIRGINIA BEACH CITY COUNCIL Tuesday, March 31, 1998, at NOON in the City Council Chamber, City Hall Building, for the following purpose: PRESENTATION FY 1998 - 1999 RESOURCE MANAGEMENT PLAN (OPERATING BUDGET and CAPITAL IMPROVEMENT PROGRAM) Sincerely, sIMeyera E. Oberndorf Mayor" March 31, 1998 MEYERA E. OBERNDORF MUNICIPA( CENTER MAYOR BUILDING 1 24U COURTHOUSE DHIVL VIRGINIA BEACH VA 23456 9000 757) 427 4581 'AX @757, 426 5699 March 10, 1998 HONORABLE MEMBERS OF CITY COUNCIL In accordance with the City Charter, Section 3.06, the City Code, Section 2-21, and by the authority vested in me as Mayor of the City, I hereby call a SPECIAL SESSION of the VIRGINIA BEACH CITY COUNCIL Tuesday, March 31, 1998, at NOON in the City Council Chamber, Ci Hall Building, for the following purpose CITY MANAGER'S PRESENTATION FY 1998 - 1999 RESOURCE MANAGEMENT PLAN (OPERATING BUDGET and CAPITAL IMPROVEMENT PROGRAM) Sincerelv, M@yera E. Oberndorf Mayor MEOlbh Virizinia Beach City Council Received Notice Councilman John A. Bauni Councilman Linwood 0. Branch, III Councilman William W Harri,5on, Jr. Councilman Harold Heischober Councilwoman Barbara M Henley Councilman Louis R. Jones Councilwoman Reba S. McClanan Councilwoman Nancy K. Parker Vice Mayor William D. Sessoins Councilwoman Louisa M Strayhorn 3 - Item IV. PRESENTATION ITEM # 43406 The City Manager introduced E. Dean Block, Director - Management Services, who presented the PROPOSED RESOURCE MANAGEMENT PLAN (OPERATING BUDGET AND CAPITAL IMPROVEMENT PROGRAM). The continuing theme is Community for a Lifetime, which reflects the sum of the City Council's goals as they have evolved and developed over the past several years. CHARACTER OF THE BUDGET No Crisis No Tax Rate Increases Fully Funds Superintendent's Budget City Fiscally Sound Living Within our Means Services Continue Progress is Occurring CITY COUNCIL GOALS/POLICIES ARE OUR FOUNDATION City "Businesses" Fiscal Sustainability Community For A Lifetime THEMES Needs of Children Aging Infrastructure Focused Economic Development Maintaining Services Fair & Affordable Employee Compensation OPERATING BUDGET FY 1997-98 FY 1998-99 City $ 374,515,651 $ 390,504,700 School $ 490,963,248 $ 515,928,633 Utility Enterprise $ 97,300,113 $ 103,038,901 TOTAL OPERATING BUDGET $ 962,779,012 $1,009,472,234 The Total Operating Budget reflects: 4.85% Total Increase Fully funds School Superintendent's Budget $190,127,956 Local Taxes for School Operating Fund; Another $32.7-MILLION for Debt Service; Operating Fund Contribution has increased 41.7% in 5 years; enrollment increases in the same time period have been 2.7%. 3% of Payroll for pay increases for City/School Employees VRS Impact is over $3-MILLION 114 Net Additional Positions in School Operating Fund 10 Net Additional Positions in City Budget $4-MILLION in School Reversion to Text Book Fund March 31, 1998 4 - Item IV. PRESENTATION ITEM # 43406 (Continued) Mr. Block advised all of the buildings in the complex are served by a central hearing and cooling plant and are connected to that p@ by pipes. 77ze nwjority of these pipes are made of iron and are twenty-,five to thiny years old. Chuck Davis, Director of Building Maintenance is responsiblefor thisfimction. As these pipes have grown older, leaks have appeared. Mr. Davis distributed samples of this aging pipe. 7he difficulty of aging infrastructure is dull but necessary and this entails a cost of approxintately $6-MMUON. Mr. Block quoted John W. Gardner: "The society which scorns excellence in plumbing because plumbing is a humble activity, and tolerates shoddiness in philosophy because philosophy is an exalted activity will have neither good plwnbing nor good philosophy. Neither its pipes nor its theories will hold water. CAPITAL BUDGET AND C.I.P. SUMMARY (New Appropriation Authority) FY 1997-98 FY1998-99 % Change Capital Budget $ 33,911,095 $ 133,340,086 293.2% School Improvements $ 67,800,701 $ 50,475,442 (25.6)% City Improvements $ 22,899,464 $ 37,157,000 62.3% Utilities $124,611,260 $ 220,972,528 77.3% Total Capital Budget $181,887,479 $ 149,281,527 (17.9)% Five Subsequent Years $137,926,911 $ 128,851,769 (6.6)% School Improvements $106,574,260 $ 100,045,949 (6.1)% School Improvements $426,388,650 $ 378,179,245 (11.3)% TOTALS School Improvements $215,798,574 $ 282,621,613 31.0% City Improvements $205,727,612 $ 179,327,211 (12.8%) Utilities $129,473,724 $ 137,202,949 6.0% GRAND TOTAL $550,999,910 $ 599,151,773 8.7% The CIP reflects: Emphasis on the physical needs of schools $132.8-MILLION to modernize 18 schools $5.1-M - School reversion $43.7-M - Charter Bonds over Six Years $84.0-M - Referendum - 4.0¢ Schools/TCC Joint Tech Facility $63.8-MILLION in other renovations Lake Ridge High School New Castle (Lake Ridge) Elementary and New Seatack Cooke Elementary Increased funding for City Facility Renewal Use $10.1-MILLION in expected school reversion in CIP for modernization, technology and bus replacement March 31, 1998 5 Item IV PRESENTATION ITEM # 43406 (Continued) There is at least a possibility there will be some state funding over the next two years, as a result of the April Twenty-second new General Assentbly Session. This would further reduce the Referendum. The 4¢ tax increase does address both the cost of Debt Service and the additional Operating Cost. These are modernizations, not simply an extension of the physical life of the building, but significant change is occurring. The tax rate could be changed by about 3/10¢ per $10-MILLION increase or decrease in the Referendum. If additional funding should be provided by the State or additional reversion funds were available, this could be applied to further reduce the tax rate. The debt policies are recommended for adjustment. FY 1998-99 Proposed Resource Management Plan Review Process Schedule of Council Workshops and Public Hearings Event Date Time Place Departments Council Workshop Thursday, April 2m 3 to 5 pm Council Conference Room Economac Vi@ Safe Community Council Workshop Tuesday, April 7t' 10 to Council Conference Room t noon Council Workshop Tuesday, April 14@ 10 to Council Conference Room noon --Libraries Public Hearing Thursday, April 1611 7 pm Larkspur Middle School Auditorium Council Workshop Tuesday, April 21m 3 to 5 pm Council 0 inference Room Council Workshop Tuesday, April 28@ 2 to 4 pm Council Conference Room if Support Policy and Decision Sunnort Public Hearing Tuesday, April 28P 6 pm Council Chambers Elecbon Day Tuesday, May 5@ No Council Meeting Recondliation Wednesday, May 6P 3 to 5 pm Council Conference Room Workshop Adopbon of Resource Tuesday, May 1211 2 pm Council Chambers Management Plan March 31, 1998 6 - Item VII. ADJOURNMENT ITEM # 43407 Mayor Meyera E. Oberndorf DECLARED the City Council SPECIAL SESSION ADJOURNED at 12:35 P.M. --, ----------------------------------- Beverly 0. Hooks, CMCIAAE Chief Deputy City Clerk 'I'@ - - ------------------------------- --- Ruth Hodges Smith, CMCIAAE Meyera E. Oberndorf City Clerk Mayor City of Virginia Beach Virginia March 31, 1998