Resource Management Plan FY 2015-16 Operating Budget and Six Year Capital Improvement Plan
What is Planned for Next Fiscal Year Where the funding Comes From Agenda OpenVB Next Steps 2
FY 2016 $ FY 2015 Proposed % Change Change Personnel $ 822.4 $ 838.6 2.0% $16.2 Fringe Benefits 312.6 305.4 -2.3% (7.2) The Proposed Operating Expenses 450.4 442.2 -1.8% (8.2) Operating Capital Outlay 13.8 15.8 14.8% 2.0 Budget Debt Service 163.8 166.8 1.8% 3.0 Compared to Pay-go CIP 48.1 58.1 20.8% 10.0 FY 2015 Reserves 20.4 44.7 119.4% 24.3 Total: $ 1,831.5 $ 1,871.6 2.2% 40.1 Includes 3% pay increase for both City and School employees Reduces staff by 242.8 positions Increases pay-as-you-go commitment to CIP 3
2,000 1,800 1,600 1,400 Budget and In Millions 1,200 Budget 1,000 Adjusted for 800 Population 600 and Inflation 400 200 0 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 Budget Adj for Pop & Inflation 4
190 180 170 160 150 Demand for 140 Services Index 130 120 110 100 90 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 5
To address service demands, this budget includes: • 2,383 public safety positions It Takes Staff • 1,161 positions to assist families to Deliver • 996 positions providing recreation, parks and Services cultural activities • 1,320 positions to maintain roadways, water pipes, storm water and other infrastructure • 10,263 library and school personnel 6
Unfunded Mandates • No Child Left Behind • Type of Voting Machines • Virginia Public Records Act • Federal Consent Decree Change in Reduction in State and Federal Revenues • Shared ABC and Wine Profits Relationship • Reduced funding for education with State • Eliminated funding for road construction and Federal Cost shift to the City • Dropped state Line Of Duty Program on localities Governments • Requires localities to subsidize fringe benefits for Constitutional Officers • Shifted Storm Water Regulations to localities $91 million in lost revenue/ increased expense each year 7
State and City Financing for the Sheriff's Department 20.0 15.0 Millions of Dollars 10.0 5.0 - Sheriff FY 07 FY 08 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 (Bdgt) (Bdgt) City State Funding Sheriff’s Fund required an additional $4.5 million in City funding Drivers • Flat State Funding • Underfunding of state compensation Very low state salaries requiring an average city supplement of $32,000 to attract and retain qualified deputies and other staff State only funds 10% of the 36% the city pays in fringe benefits • Medical contract costs increased 8
3% Pay Increase • 1.34% related to the VRS mandated requirement that employees pay 5% of their retirement costs and that the City and Schools provide a pay raise to cover the employee’s increased cost • 1.66% general increase provided in July rather than the fall as in the past Health Care • Maintains defined contribution strategy for the employer’s Compensation contribution VRS • employer’s contribution rate is the same as last year for city, slight decrease for schools based on final State Budget Other Compensation Adjustments • Second year of three year commitment to address horizontal compression • Partial adjustments for school employees on the Unified Pay Scale 9
School Board requested an additional $20.3 million, understanding that this would require a tax increase. This budget recommends that the dedication of real estate tax to Schools be increased from the current 4 cents, to 6 cents to allow for the following: • Provided needed funding for a 3% increase on July 1 st to School School employees. This is less than the School Board’s request for funding Funding for a 5% increase. • Provide $2 million to make partial adjustments to the unified pay scale – no change from the School Board request • Provide $4 million to reduce the School’s reliance on reversion funding and transfer the School Budget use of these funds back to the School Special Reserve fund. This will provide a “fund balance” for School’s use if needed. 10
Based on the recommendations of the City Council appointed Bio-Medical Task Force, the Operating Budget includes $500,000 to match state funding of $500,000. Bio-Medical Task Force This will provide funding to create a thriving health care complex dedicated to advancing research and development in diabetes, cardiovascular disease, neuroscience, and traumatic brain injury. 11
This district located on and around 17 th Street would promote and support creative businesses located in the district to add jobs, expand the city’s economy, and enhance quality of life. ViBe District Included in the Proposed Operating Budget is • $50,000 for a micro-loan grant program • $50,000 to brand and promote the district. 12
Reallocation of the existing storm water fee allows for the following: • Additional street sweeping --The budget includes funds for the first phase, purchasing 4 street sweepers and 7 staff. Based on City Council direction on March 10, 2015, staff is Storm Water preparing an RFP to solicit private vendors to provide this service. No action will be taken on the funding until the results Enhancements of the RFP are known. • Addressing the backlog of lake dredging projects NO Rate Increase! 13
Decreased positions by 242.8 • Increases class size by one student • Closure of Pendleton Child Care Reducing • Elimination of D.A.R.E Program Programs and In 2014 the city reduced its costs or avoided Saving Costs incurring costs by $10.4 million without reducing services Using volunteers to provide services rather than staff, saved over $19 million 14
Capital Years Budget 2-6 Total CIP Schools $ 36.5 $ 187.0 $ 223.5 Roadways 1 52.1 421.8 473.9 Buildings 51.6 84.4 136.0 Capital Parks and Recreation 21.1 33.8 54.9 Improvement Utilities 63.6 311.4 375.0 Coastal 12.7 51.8 64.5 Program Economic and Tourism 2 65.0 46.1 111.1 Funding Communications and 13.5 42.8 56.3 Information Technology Total $ 316.1 $ 1,179.1 $ 1,495.2 Note: 1 Includes funding for transit related projects 2 Includes funding for arena infrastructure 15
The CIP includes $78.5 million for the infrastructure needed to support the privately constructed and financed Arena • The city’s cost will be funded through the use of public facility bonds Arena There are three projects • Proposed Arena Infrastructure Development Infrastructure • Birdneck Road/17 th Street Intersection Improvements (offsite) • 19 th Street Infrastructure Improvements These projects are primarily funded from current revenues within the Tourism Investment Program Fund, with a five year increase in the dollar per room night charge 16
(in millions) FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 Fund Balance(June 2015) $ 1.10 Current Revenues $ 36.80 $ 37.90 $ 39.09 $ 40.32 $ 41.60 $ 42.81 Current Expenditures $ 36.80 $ 33.50 $ 33.74 $ 33.79 $ 32.87 $ 31.66 Arena Debt Service on Arena $ - $ 2.50 $ 4.80 $ 4.97 $ 6.70 $ 8.84 Arena Related Expenditures $ - $ 3.40 $ 3.50 $ 3.62 $ 3.74 $ 3.86 Infrastructure Total Expenditures $ 36.80 $ 39.40 $ 42.04 $ 42.38 $ 43.31 $ 44.36 Financing Cumulative Balance $ 1.10 $ (1.50) $ (2.95) $ (2.06) $ (1.71) $ (1.55) Addition of $1 per room night $ 0.96 $ 2.11 $ 2.11 $ 2.11 $ 2.11 $ 1.16 Cumulative Balance with $1 per room night $ 2.06 $ 2.67 $ 1.83 $ 1.88 $ 2.28 $ 1.89 17
Does not preclude the City Council decision on which, if any, locally preferred option to select • The proposed capital projects matches the State’s funding of $155 million with city debt for a total project cost of $310 million Light Rail There are three projects • Virginia Beach Transit Extension Project (#2.092) • Light Rail Corridor Shared Use Path – again funded on a 50/50 basis with state. Total project is $17.7 million • Bus for Virginia Beach Transit Extension – funded through a state grant at 68% state and 32% city. City’s portion is $3.6million, HRT will receive the grant 18
FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 (in millions) Debt Service 0 0 $5.97 $12.17 $12.17 $12.17 Operations 0 0 0 $3.5 $7.2 $7.4 Total Expenses 0 0 $5.97 $15.67 $19.37 $19.57 Light Rail ARP redirection $1.74 $1.79 $1.83 $1.87 $1.92 $1.96 Financing Open Space redirection $2.42 $2.47 $2.52 $2.57 $2.62 $2.68 General Fund Support $10.76 $11.03 $11.30 $11.58 $11.87 $12.10 Total Revenues: $14.92 $15.29 $15.65 $16.02 $16.41 $16.74 Revenues less Expenses $14.92 $15.29 $9.68 $0.35 ($2.96) ($2.83) Cumulative Balance $30.21 $39.89 $40.24 $37.28 $34.45 19
Bus Stop Infrastructure Accessibility Improvement Electronic Procurement System West Neck Road Phase IV Fire Mobile Radio Repeaters New Capital Central Plant Generator Projects Maintain and Secure Corporate Data Pleasure House Point Mitigation Princess Anne Athletic Commons Multi Purpose Athletic Field Renovation 20
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