Budget Goals: Maintain Service Levels for all Citizens with Minimal Tax Impact Support for Suffolk Public Schools Employee Compensation and Critical Personnel Resources Investment in Quality of Life Compliance with Financial Policies
2
Budget Document Structure:
• • • • •
Covers 17 Operating & Capital Funds of the City Total of all funds - $627,483,641 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
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General Fund - Executive Summary Current R.E. Tax Rate:
$
1.07
Proposed R.E. Tax Rate:
$
1.11
Recommended Tax Increase:
$
.04
Reassessment Tax Rate Adjustment:
$
.01
% General Fund
Change
Proposed Revenues:
$
213,191,824
5%
Proposed Expenditures:
$
213,191,824
5%
$
0
Unfunded Gap:
Change in Spending from Prior Year:
$
11,023,795
4
FY 19 General Fund Challenges New Revenue Real Estate Other General Property Taxes Other Local Taxes Fees/Charges State/Federal Expenditure Requirements Schools 2.5% COLA Debt Service Chuckatuck Fire Station (18 Positions) Capital Pay-Go Information Technology General Operating Fire Medical Exams Risk Insurances Local and Regional Organizations Regional Jail Social Services Budget Gap
$
$ $
3,102,602 1,500,000 900,000 1,043,710 (277,160) 6,269,152
$
4,000,000 1,610,911 1,265,768 1,208,744 1,000,000 750,103 473,139 236,164 125,504 83,091 60,008 (756,195) 10,057,237
$
(3,788,085)
5
Maintain Services with Minimal Tax Impact
$.04 Adjustment to Real Estate Tax Rate to address Schools funding requirements (New Schools/Debt/Compensation)
Proposed Real Estate Tax Rate: $1.11
Citywide
$.105
Downtown Business Overlay Taxing District
$.24
RT. 17 Taxing District
3rd
lowest rate in region behind Virginia Beach ($1.0025) and Chesapeake (1.05)
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Real Estate – 7% increase ($6.7M) • $.04 adjustment to Real Estate Tax Rate • Reassessment value increase (1.0% incr.) • New Construction increase (.97% incr.)
Personal Property – 6% increase ($1.2M)
Public Service Corporations – 8% increase ($300K)
Other Local Taxes – 6% increase ($900K) o Admissions (17%) o Lodging (13%) o Bank Stock (9%)
o Meals (6%) o Sales and Use (5%) o Utility (2%)
7
Fees, Charges, Miscellaneous – 15% increase ($1M)
State & Federal – 1% decrease ($-277K)
Fee Adjustments
5% market rate adjustment to Community Development Fees
First adjustment in 10 years
8
GENERAL FUND REVENUE
General Property Taxes Other Local Taxes Fees, Charges, Misc. State Fund Transfers
FY 18 Budget
FY 19 Recommended
Incr./ Decr.
Percent Change
$ 121,371,160
$ 129,634,771
$8,263,611
7%
42,875,000
43,775,000
900,000
2%
6,970,290
8,014,000
1,043,710
15%
26,101,512
25,824,352
(277,160)
-1%
4,850,066
5,943,701
1,093,635
23%
$202,168,028
$213,191,824
$11,023,795
5%
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Support for Suffolk Public Schools
Schools Operating Budget Request - $6.9M increase $2.9 M State Funding 4.0 M Local Funding $6.9 M
Local Funding Request $2.2 M New Elementary and Middle Schools 1.8 M School Employee Compensation & Other Operating Expenses $4.0M
No increase in Student enrollment projected 10
Support for Suffolk Public Schools
City Manager Recommendation • $4M additional Local Funding for Schools Operations
Total Local Funding Support for Schools - $4,610,729 • $607K additional debt service FY 18 Budget Operating Leases Debt Service
$ 55,832,201
FY 19 Recommended $
551,517 10,438,255 $ 66,821,973
$
59,832,201
Incr/Decr. $
4,000,000
554,445
2,928
11,046,056
607,801
71,432,702
$
4,610,729
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• •
$7.2M total funding increase over last 5 years (FY 13 – FY 18) despite a decrease of 62 students. $4.6M increase in Local Funding Support proposed in FY 19 including debt service and building lease.
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13
Primary Drivers:
Schools Funding ($4.0M) • •
Personnel & Benefits ($3.0M) • • •
2.5% COLA for employees 18 new firefighters Fire & Rescue Part-Time/Overtime
Debt Service ($1.2M) •
$4M increase for school operations $3K increase for school administration and print shop leases
$607K for Schools related debt
Capital Pay-Go ($1.0M) • •
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
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Primary Drivers:
Information Technology ($750K) • •
General Operating ($473K) • • •
Maintenance Contracts/Professional Services/Operating Supplies Training – New Firefighters Uniforms/PPE – New Firefighters
Fire Medical Exams ($236K) •
Public Safety ruggedized laptops/licenses Depreciation
National Fire Protection Association recommended enhanced medical screening
Risk Insurances – ($125K) • •
Health Insurance premiums Workers Compensation/Property Liability Insurance
15
_______________Local and Regional _______________Non Department _______________ Public Works _______________Capital “Pay Go” _______________Community Development
.005 .005 .02 .02 .03
_______________Judicial _______________Parks, Recreation & Cultural
.04 .05
_______________General Government
.05
_______________Health and Welfare
.07
_______________Debt Service
.08
_______________Public Safety
.29
_______________Education & Related Debt
.34
TOTAL
$1.00 16
Proposed Budget:
$66,589,675
All Year 1 CIP projects included in FY 19 Capital Budget General Gov’t $50,984,675 Public Utilities 12,835,000 Stormwater 1,770,000 RT 17. Taxing District 1,000,000 $66,589,675
State/Federal G.O. Debt General Fund Cash Transfer from RT. 17
$28.0M 18.2M 4.5M .2M $50.9 M
G.O. Bond Issuance of $18.2M
Public Utility bond funding of $5.3M for water & sewer projects
Utilize $1.5M from Fund Balance for compliance with Capital Pay-Go financial policy requirement
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Compliance with Financial Policies Policy Requirement
FY 18
FY 19 Projected
Capital Pay Go
3.0%
3.1%
3.0%
Debt as Percentage of Assessed Value
4.0%
2.1%
2.2%
Debt as Percentage of General Gov't Exp.
10.0%
8.8%
8.3%
Unassigned Fund Balance
12.0%
16.1%
17.0%
Policy Goal 12%
$42.5M
12%
FY 18 Proj. Fund Balance $60.1M
17.0%
FY 19 Gen. Govt. Exp.
$354.3M
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Downtown Business Overlay District
No change to tax rate of $.105 Continued enhanced street sweeping, refuse collection, and landscaping services to Downtown
Rt. 17 District
$171,907
$1,702,885
No change to tax rate of $.24 Funding for debt payments associated with transportation improvements Transfer of $1.2M to Capital Projects Fund for James River Shoreline Open Space ($1M) and Harbour Town Parkway Connector and Wetlands Crossing ($200K) projects
19
Road Maintenance Fund
$26,587,628
State Maintenance funds based on 1,632 lane miles
Grants Fund
$634,215
$350K in local match funds to leverage State/Federal grants
Section 108 loan payment with CDBG funds
Aviation Fund
$1,052,067
Includes transfer from the General Fund of $99,815
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Law Library Fund
$39,815
Operation of the public City Law Library located in the Godwin Courts Building
Transit Fund
$1,934,197
Provides operational cost for City bus service
Additional $98K in Federal funding and $182K in State operating and capital funding anticipated
Replacement of four 19-passenger buses
21
Fleet Fund
$13,615,592
Replacement of critical Fleet equipment exceeding useful life and safety standards using cash from General Fund and Fleet Fund Balance
Information Technology Fund
$9,466,929
Provides for technology services citywide
Maintenance contracts for critical equipment and software
Replacement of aging equipment, software, and required licenses
22
Risk Management Fund
$20,513,322
Funds workers compensation, public safety line of duty act, health insurance, and property/casualty insurance • Continued 80% employer contribution to Health Insurance premium • Compliance with 20% risk stabilization reserve policy requirement
Anticipated increase in Health Insurance claims expenses
Continue to fully fund OPEB annual required contribution obligations through annual claims payments
23
Proposed Budget:
$28,420,944
Annual debt service for General Government, Schools, & Rt. 17 Taxing District Includes an estimate for Debt Service on $18.2M in new GO Bonds to support Year 1 CIP projects
Policy Compliance: • Debt /AV 4% max: 2.2% • Debt to GF exp 10% max: 8.3%
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Proposed Budget:
$168,662,537
$2.9M increase in State funding for Schools Operating Fund Local contribution: $59,832,201 Operations 554,445 Bldg. Leases $60,386,646
• $4M increase for operating expenses • $3K increase for school administration and print shop leases Level student enrollment – 13,800
Excludes: $11.0M in School Debt Service funding projected for FY19 to be provided by the General Fund $2.5M in Capital Project funding for Schools Major Repairs/Systems Replacements and $75K Hazardous Materials Management
25
Storm Water Fund
$7,246,865
No increase in rate of $6.00 p/month Mandated Stormwater management services and citywide mosquito control $1,020,000 transfer to Capital Projects Fund for Stormwater capital projects
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Public Utility Fund
$59,124,808
New customer projection of 425 ERUs
Usage rate adjustments of $.51 (Water) & $.06 (Sewer) per CCF and $1.60 Meter Service Charge
Average combined Water/Sewer bill increase for 5 CCF user of $4.45 per month not including HRSD adjustments
$7.5M cash funding for Capital Projects
1 new FTE – Skilled Laborer
Policy Compliance projected in all required areas
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Refuse Fund
$8,528,433
ďƒ˜
Provides for household refuse, bulk collection, citywide recycling service, and landfill closure costs to 30,400 households
ďƒ˜
No Change to $19.50 per month refuse fee
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$.04 increase to the Real Estate Tax Rate
$4M in additional Local Funding for Suffolk Public
Schools
2.5% COLA for City employees
18 new Firefighters to address fire suppression staffing
at the Chuckatuck Fire Station Significant
investment in neighborhoods and citywide infrastructure through capital improvements
Compliance
with all Financial Policies
29
April 4, 2018
Work Session: - Presentation of Proposed Budget Regular Meeting - Council Motion: - Authorize May 2nd Public Hearing on Budget - Authorize May 16th Public Hearing on Real Estate/ Mobile Homes Tax Increase
May 2, 2018
Public Hearing on Proposed Budget & Related Ordinances
May 16, 2018
Public Hearing on Real Estate/Mobile Homes Tax Increase Adoption of City Budget & Related Ordinances
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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
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