Budget Goals: Maintain Service Levels with No Tax Impact to Citizens Support for Suffolk Public Schools Employee Compensation and Critical Personnel Resources Enhance Public Safety Resources Investment in Quality of Life Compliance with Financial Policies
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Budget Document Structure:
• • • • •
Covers 17 Operating & Capital Funds of the City Total of all funds - $639,397,543 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:
$
1.11
Proposed R.E. Tax Rate:
$
1.11
Recommended Tax Increase:
$
-
Reassessment Tax Rate Adjustment:
$
.01
% General Fund
Change
Proposed Revenues:
$
219,040,993
2.7%
Proposed Expenditures:
$
219,040,993
2.7%
$
0
$
5,849,169
Unfunded Gap:
Change in Spending from Prior Year:
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Maintain Service Levels with No Tax Impact to Citizens
No adjustment recommended to the Real Estate Tax Rate
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 – 2% increase ($2.3M) • Reassessment value increase (1.17% incr.) • New Construction increase (.92% incr.)
Personal Property – 6% increase ($1.3M)
Public Service Corporations – 7% increase ($300K)
Other Local Taxes – 5% increase ($2.1M) o Utility (4%) o Recordation (24%) o Bank Stock (4%) o Meals (11%) o Business License (7%) o Sales and Use (3%)
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Fees, Charges, Miscellaneous – 19% increase ($1.5M)
State & Federal – 1% increase ($360K)
Fee Adjustments
5% market rate adjustment to Community Development Fees
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GENERAL FUND REVENUE FY 19 Budget General Property Taxes Other Local Taxes Fees, Charges, Misc. State/Federal Fund Balance/Fund Transfers
FY 20 Recommended
Incr./ Decr.
Percent Change
$ 129,634,771
$ 133,792,277
$4,157,506
3%
43,775,000
45,850,000
2,075,000
5%
8,014,000
9,517,019
1,503,019
19%
25,824,352
26,185,766
361,414
1%
5,943,701
3,695,930
$213,191,824
$ 219,040,993
(2,247,771)
-38%
$5,849,169
2.7%
Support for Suffolk Public Schools $5.1M
overall increase in Schools Budget (All Funds)
$3.1M increase in State funds
1.0M increase requested from City
13,800 students projected - No increase over FY 19
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Support for Suffolk Public Schools
City Manager Recommendation • $1M additional Local Funding for Schools Operations
Total Local Funding Support for Schools - $1.5M • $553K additional debt service FY 19 Budget Operating Leases Debt Service
$ 59,832,201
FY 20 Recommended $
554,445
$
534,719
11,046,056 $ 71,432,702
60,832,201
Incr/Decr. (19,726)
11,599,020 $
72,965,940
1,000,000 552,964
$
1,533,238
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Primary Drivers:
Personnel & Benefits ($3.6M) • 2.5% COLA for employees • 24 new positions • Part-Time/Overtime for Public Safety
Schools Funding ($1.0M) • $1M increase for school operations
General Operating ($790K) • Maintenance Contracts/Professional Services/Operating Supplies • Public Safety training and uniforms Fleet Management ($580K) • Fuel • Transfer to Capital – New Fleet Management Facility Planning per CIP • Depreciation
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Primary Drivers:
Debt Service ($514K) • Schools additional debt service
Capital Pay-Go ($500K) • 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
Information Technology ($448K) • Portable radio replacements for Public Safety departments
Risk Insurances ($195K) • Health Insurance premiums • Workers Compensation/Property Liability Insurance
Police Medical Exams ($140K) • Police Officer Annual Physical Exams
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_______________Local and Regional _______________Non Department _______________ Public Works _______________Capital “Pay Go” _______________Community Development
.01 .01 .02 .02 .03
_______________Judicial _______________Parks, Recreation & Cultural
.04 .05
_______________General Government
.05
_______________Health and Welfare
.07
_______________Debt Service
.07
_______________Public Safety
.29
_______________Education & Related Debt
.34
TOTAL
$1.00 13
Proposed Budget:
$64,557,855
All Year 1 CIP projects included in FY 20 Capital Budget General Gov’t Public Utilities Stormwater Fleet Transfer to Debt
$50,876,496 12,825,000 400,000 125,000 331,359 $64,557,855
State/Federal G.O. Debt General Fund Cash Transfer from Fleet
$24.9M 21.1 4.8 .1 $50.9 M
G.O. Bond Issuance of $21.1M
Public Utility bond funding of $5.5M for water & sewer projects
Stormwater Obligation bond funding of $400K
Utilize $1.0M from Fund Balance for compliance with Capital Pay-Go financial policy requirement
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Compliance with Financial Policies Policy Requirement
FY 19 Budget
FY 20 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%
8.3%
8.0%
Unassigned Fund Balance
12.0%
17.0%
18.9%
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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
$171,749
$1,715,017
No change to tax rate of $.24 Funding for debt payments associated with transportation improvements Reserve for future capital projects
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Road Maintenance Fund
State Maintenance funds based on 1,632 lane miles $1.8M from fund balance for equipment purchases and operations
Grants Fund
$660,129
Local match funds to leverage State/Federal grants
Aviation Fund
$27,956,333
$1,055,583
Includes transfer from the General Fund of $91,531
17
Law Library Fund
$41,580
Operation of the public City Law Library located in the Godwin Courts Building
Transit Fund
$1,699,144
Provides operational cost for City bus service
Additional $44K in Federal funding and reduction of $211,602 in State funding anticipated
Replacement of one 19-passenger buses
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Fleet Fund
$14,768,171
Replacement of critical Fleet equipment exceeding useful life and safety standards using $1.9M cash from Fleet Fund Balance
Information Technology Fund
$10,087,567
1 new FTE recommended – IT Security Administrator
Provides for technology services citywide
Maintenance contracts for critical equipment and software
Replacement of aging equipment, software, and required licenses
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Risk Management Fund
$20,541,171
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
Continue to fully fund OPEB annual required contribution obligations through annual claims payments
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Proposed Budget:
$28,964,818
Annual debt service for General Government, Schools, & Rt. 17 Taxing District Includes an estimate for Debt Service on $21.2M in new GO Bonds to support Year 1 CIP projects
Policy Compliance: • Debt /AV 4% max: 2.1% • Debt to GF exp 10% max: 8.0%
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Proposed Budget:
$173,824,500
$3.1M increase in State funding for Schools Operating Fund Local contribution: $60,832,201 Operations 534,719 Bldg. Leases $61,366,920
• $1M increase for operating expenses • $20K reduction for school administration and print shop leases Level student enrollment – 13,800
Excludes: $11.6M in School Debt Service funding projected for FY 20 to be provided by the General Fund $2.5M in Capital Project funding for Schools Major Repairs/Systems Replacements and $75K Hazardous Materials Management
22
Storm Water Fund
$6,297,184
No increase in rate of $6.00 p/month Mandated Stormwater management services and citywide mosquito control
$400,000 Stormwater Obligation bonds for neighborhood drainage related capital projects
Transfers 1 FTE to Public Works Administration in General Fund
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Public Utility Fund
$58,924,100
New customer projection of 475 ERUs
No water/sewer rate adjustments
$1.25 per month increase to Meter Service Charge
Combined water/sewer users will see a $1.25 per month increase not including HRSD adjustments
$7.3M cash funding for Capital Projects
1 new FTE – Pump Station Instrumentation & Control Supervisor
Policy Compliance projected in all required areas
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Refuse Fund
$9,091,649
Provides for household refuse, bulk collection, citywide recycling service, and landfill closure costs to 30,101 households
$1.80 per month increase to refuse fee from $19.50 to $21.30 to address cost requirements of trash disposal
Increases size of free bulk refuse collection service from 8 to 12 cubic yards
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No change to the Real Estate Tax Rate
$1M in additional Local Funding for Suffolk Public Schools
2.5% COLA for all regular full-time and part-time City employees, grant
employees, Constitutional Officers and their employees, and City Council Appointees
24 new General Fund positions to address workload and service demands including 13 new police officers/emergency communications positions
Additional funding to address Public Safety part-time/overtime requirements, and $2.7M for replacement of portable radios
Continued investment in capital improvements for quality of life of neighborhoods and citywide infrastructure
Compliance with all Financial Policies
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April 3, 2019
Work Session: - Presentation of Proposed Budget Regular Meeting - Council Motion: - Authorize May 1st Public Hearing on Budget - Authorize May 15th Public Hearing on Effective Real Estate Tax Increase Due to Reassessment
May 1, 2019
Public Hearing on Proposed Budget & Related Ordinances
May 15, 2019
Public Hearing on Effective Real Estate Tax Increase Due to Reassessment 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
• 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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