Budget Goals: No Real Estate Tax Increase Support for Suffolk Public Schools Employee Compensation and Critical Personnel Resources Investment in Quality of Life Compliance with Financial Policies
No Tax Increase • Real Estate Tax Rate: $1.07 Citywide $.105 Downtown Business Overlay Taxing District $.24 RT. 17 Taxing District • 3rd lowest rate in region behind Va. Beach ($.99) and Chesapeake ($1.05)
Support for Suffolk Public Schools • $2.1M in additional funding from State, Federal, Other sources • City proposed budget includes $1M in additional Local Funding • Total Local Funding Support for Schools Operating Admin. Office Lease Debt Service
$54,832,201 551,517 10,605,488 $65,989,206
*Local Funding for School Operations only not including debt service or lease payments.
Suffolk Local Funds Support of Schools 14,000
$80,000,000 $70,000,000 $60,000,000
$60.1M
$61.0M
$62.2M
$65.0M
$65.5M
$65.9M
$69.4M
13,960 13,920
$55.2M 13,880
$50,000,000 13,840 $40,000,000 13,800 $30,000,000 13,760 $20,000,000
13,720
$10,000,000
13,680
$‐
13,640 FY 12
FY 13
Local Funds Operating Support of Schools
FY 14
FY 15
FY 16
Lease/Rent of Building
FY 17
FY 18 Proposed FY 19 Projected
City Debt Service Related to Schools
Avg Daily Population
• $10.3M increase in total funding over last 5 years (FY 12 – FY 17) despite flat enrollment. • $3.5M projected increase in Local Funding required in FY 19 for new middle school operational expenses and additional debt service.
Support for Suffolk Public Schools •
Future Obligations – FY 19: - $3.5M additional operating expenses projected for operation of the New Middle School and additional debt service in FY 19 - New revenue growth needed ---- equivalent to 3.8 cents on Real Estate tax rate
Employee Compensation and Critical Personnel Resources • 1.2% Cost-of-Living Adjustment effective July 1, 2017 • 9 new positions proposed for General Fund departments out of 29 requested Police Officer Accreditation Manager PSAP Manager Firefighter I Appraiser I Asst. Commonwealth Attorney II Deputy Treasurer I
1 1 1 3 1 1 1 9
Redeploys 2 Police Officers currently performing Accreditation/PSAP duties
Employee Compensation & Critical Personnel Resources •
3 new positions recommended in enterprise and special revenue funds to address service level needs Road Maintenance Fund - Construction Inspector I
1
Transit Fund - Transit Manager
1
Stormwater Fund - Civil Engineer III
1
Investment in Quality of Life • FY 18 Capital Budget includes Year 1 projects per adopted CIP General Gov’t Public Utilities Stormwater
$59,676,582 8,360,000 350,000 $68,386,582
New Middle/Elementary $14.25 M Operations Facility 4.00 M HVAC/Chiller 1.00 M Hazardous Materials Mgmt. .75 K $19.3 M
• $24.1M or 35% of Capital Funding provided by State/Federal Grants • $4.5M needed for compliance with Capital Pay-Go • $2M restored in General Fund • $2.5M proposed from projected FY 17 excess General Fund revenue via Unassigned Fund Balance
ďƒ˜ Compliance with Financial Policies Policy Requirement
FY 17
FY 18 Projected
Capital Pay Go
3.0%
3.0%
3.1%
Debt as Percentage of Assessed Value
4.0%
2.2%
2.1%
Debt as Percentage of General Gov't Exp.
10.0%
9.5%
8.8%
Unassigned Fund Balance
12.0%
15.8%
16.1%
Budget Document Structure: • • • • •
Covers 17 Operating & Capital Funds of the City Total of all funds - $601,766,129 Includes “Executive Summary” of major points for funds Includes detailed line item financial plans for all funds Includes an Appendix to address: Personnel Summary by department City statistical information, graphs, and trends Summary of reserve balances Financial policy compliance report Proposed ordinances to support budget proposal
General Fund - Executive Summary Current R.E. Tax Rate:
$
1.07
Proposed R.E. Tax Rate:
$
1.07
Recommended Tax Increase:
$
0
Reassessment Tax Rate Adjustment:
$
.02
% General Fund
Change
Proposed Revenues:
$
202,010,846
3.2%
Proposed Expenditures:
$
202,010,846
3.2%
$
0
$
6,169,558
Unfunded Gap:
Change in Spending from Prior Year:
Real Estate – 2% increase ($2.1M) • Reassessment value increase (1.56% incr.) • New Construction increase (.50% incr.)
Personal Property – 5% increase ($900K)
Public Service Corporations – 18% increase ($600K)
Other Local Taxes – 6% increase ($2.4M) o Admissions (20%) o Lodging (18%) o Sales & Use (11%)
o Business License (9%) o Motor Vehicle License (4%) o Meals (3%)
Fees and Charges – 2% decrease ($-164K)
State Revenue – 0.4% decrease ($-82K)
Federal Revenue – 2% increase ($123K)
Fund Transfers – 8% increase ($356K) Includes $2.5M from Unassigned Capital Pay-Go financial policy.
Fund Balance for compliance with
GENERAL FUND REVENUE FY 17 Budget General Property Taxes
$
Other Local Taxes
117,792,437
FY 18 Recommended $
40,450,000
Fees & Charges
Incr./ Decr.
Percent Change
121,302,997
$ 3,510,560
3%
42,875,000
2,425,000
6%
7,133,895
6,970,290
(163,605)
20,893,615
20,811,986
(81,629)
Federal Revenue
5,077,656
5,200,507
122,851
2%
Fund Transfers
4,493,685
4,850,066
356,381
8%
202,010,846
$ 6,169,558
State Revenue
$
195,841,288
$
-2% -0.4%
3.2%
Revenue includes $2.5M from Fund Balance for Pay-Go requirements.
__________ __________ __________ __________ __________ __________ __________ __________
Local & Regional Org. Non Departmental Community Development Capital Pay Go Public Works Judicial Parks, Rec., & Cultural General Government
.005 .005 .02 .02 .03 .04 .05 .06
__________
Health and Welfare
.07
__________
Debt Service
.07
__________
Public Safety
.30
__________
Education & Related Debt .33
Total________________________________$1.00
Primary Drivers:
Capital Pay-Go ($2.5M) ◦ Partially restores recurring revenue to cash fund capital projects ◦ Additional cash funding for capital projects required to meet financial policy due to increase in General Fund budget
Personnel & Benefits ($2.1M) ◦ Full Yr. of Compensation Study (Oct. 1st implementation in FY 17) ◦ 1.2% COLA for employees ◦ 9 new positions to address City growth and workload increases
Schools Funding ($1M) ◦ $1M increase for school operations ◦ $16K increase for school administration and print shop leases
Primary Drivers:
Information Technology ($827K) ◦ Maintenance Service Contracts (Motorola E-911/Towers and overall cost increases) ◦ Software/Program support
Fleet ($767K) ◦ Budgeted for fleet operating expenses without utilization of Fleet fund balance
Risk Management ($424K) ◦ Increasing health insurance liability ◦ Projected increase in property/liability premiums due to Hurricane Matthew claims
Proposed Budget:
$68,386,582
• All Year 1 CIP projects included in FY 18 Capital Budget General Gov’t $59,676,582 Public Utilities 8,360,000 Stormwater 350,000 $68,386,582
$19.3M provided for Schools capital projects. $24.1M or 35% provided from State/Federal grants
• G.O. Bond Issuance of $27.7M • Public Utility bond funding of $5M for water & sewer projects • Utilize $2.5M in anticipated FY 17 excess revenues from Fund Balance for compliance with Capital Pay-Go financial policy requirement
Downtown Business Overlay District
$176,222
No change to tax rate of $.105 Continued enhanced street sweeping, refuse collection, and landscaping services to Downtown
Rt. 17 District
$1,855,432
No change to tax rate of $.24 Funding for the Point Place Roadway, Point at Harbour View project Funding for debt payments associated with transportation improvements
Road
• •
Maintenance Fund
$26,186,245
State Maintenance funds based on 1,634 lane miles Addition of Construction Inspector I position to address work load increases
Grants
Fund
$424,594
•
$350K in local match funds to leverage State/Federal grants
•
Section 108 loan payment with CDBG funds
Aviation
Fund
$1,028,142
Includes transfer from the General Fund of $76,970
Law
Library Fund
$41,561
Operation of the public City Law Library located in the Godwin Courts Building Transit
Fund
$1,624,571
Provides operational cost for City bus service Additional $485,000 in Federal funding anticipated for additional service hours and new Saturday service Addition of Transit Manager contingent upon Federal funding Purchase of a passenger bus, paratransit vehicle, two new shelters, and signage at all official bus stops
Fleet
Fund
$15,559,912
• Replacement of critical Fleet equipment exceeding useful life and safety standards using cash from Fleet Fund Balance Information
Technology Fund
$8,931,702
• Provides for technology services citywide • Maintenance contracts for critical equipment and software • Replacement of aging equipment required for special revenue and enterprise fund departments only
Risk
Management Fund
$21,429,655
• Funds workers compensation, public safety line of duty act, health insurance, retiree OPEB health benefit obligation and property/casualty insurance Continued 80% employer contribution to Health Insurance premium Compliance with 20% risk stabilization reserve policy requirement
• Full funding for OPEB obligations • Anticipated increase in Health Insurance claims expenses
Proposed Budget:
$27,179,729
• Annual debt service for General Government, Schools, & Rt. 17 Taxing District • Includes an estimate for Debt Service on $27.7M in new GO Bonds to support Year 1 CIP projects Policy Compliance: • Debt /AV 4% max: 2.1% • Debt to GF exp 10% max: 8.8%
Proposed Budget:
$160,536,936
• $2.1M increase in State, Federal, Other funding • Local contribution: $54,832,201 Operations 551,517 Bldg. Leases $55,383,718 $1M increase for operating expenses $16K increase for school administration and print shop leases
• Level student enrollment – 13,800
Excludes: • $10.6M in School Debt Service funding projected for FY18 to be provided by the General Fund • $19.3M in Capital Project funding for New Elementary and Middle Schools, Operations Facility, HVAC/Chiller Replacement, and Hazardous Materials Management
Storm
Water Fund
$6,114,296
• No increase in rate of $6.00 p/month • Mandated Stormwater management services to include mosquito control • Addition of Civil Engineer III to address increasing workload
Public
Utility Fund
$52,684,425
• New customer projection of 400 ERUs • Usage rate adjustments of $.17 (Water) & $.24 (Sewer) per CCF • Average combined Water/Sewer bill increase for 5 CCF user of $2.05 per month not including HRSD adjustments • No net FTEs – Adds Safety Officer II and eliminates Office Asst. • Policy Compliance projected in all areas required
Refuse Fund
$7,595,278
• Provides for household refuse, bulk collection, citywide recycling service, and landfill closure costs to 29,500 households • $3 per month fee increase to $19.50 per month to address cost requirements of trash disposal at the regional landfill per the new SPSA agreement
90 gallon Refuse Container and bi-weekly Recycling.
Refuse Fund established with the adoption of the FY 12 Budget
History of Monthly Refuse Collection Fee: FY 12 - $17.50 FY 13 - $17.50 FY 14 - $17.50 FY 15 - $16.50 FY 16 - $16.50 FY 17 - $16.50 FY 18 - $19.50 (Proposed)
No Increase to the Real Estate Tax Rate
$1M in additional Local Funding for Suffolk Public Schools
1.2% COLA for City employees
Modest increase in FTEs to address workload demand due to City growth
Significant investment in quality of life through capital improvements
$3 per month increase in Refuse fee due to cost requirements
of new SPSA agreement Compliance with all Financial Policies
April 5, 2017
Work Session: - Presentation of Proposed Budget Regular Meeting - Council Motion: - Authorize May 3rd Public Hearing on Budget - Authorize May 17th Public Hearing on “Effective Rate Increase”
May 3, 2017
Public Hearing on Proposed Budget & Related Ordinances
May 17, 2017
Public Hearing on “Effective Rate Increase” Adoption of City Budget & Related Ordinances
Proposed Budget is Posted to City Website Presentation is Posted to City Website Full Budget Document Available for Review:
City Website Municipal Building: City Clerk’s Office Finance Department/Budget Office
City Libraries Recreation Centers (East Suffolk and Whaleyville)
Citizens can contact the Budget Office for assistance or questions at BudgetOfficer@suffolkva.us or 514-4006