BUDGET PRIORITIES
Quality of Life – Capital Improvements
$35.2M Bonds/Literary Loan for General Government capital projects
$26.7M General Fund cash for capital projects
$7.3M draw from Capital Reserve Fund vs planned $11.9M in CIP
$8M for Capital Contingency to address construction inflation
$8.1M State, Federal, and Other funds
$7.5M Utility Fund cash for water and sewer capital projects
$4.9M Stormwater Revenue bonds and $1M Stormwater cash funding for drainage improvements
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BUDGET PRIORITIES
Financial Policy Compliance – AAA Status
10 Policy Requirement FY 24 Budget FY 25 Projected Capital Pay-Go 3.0% 10.3% 11.5% Debt as Percentage of Assessed Value 4.0% 1.5% 1.4% Debt as Percentage of General Gov't Exp. 10.0% 6.6% 6.2% Unassigned Fund Balance 20.0% 20.0% 20.0% Budget Stabilization Fund 2.5% Max 2.5% 2.5% Capital Reserve Fund No Min/Max $47.8M $50.9M
FY 25 PROPOSED BUDGET
General Fund $324,213,302 Capital Projects Fund 83,514,269 Debt Service Fund 34,228,465 Downtown Business Overlay Taxing District 228,443 Route 17 Special Taxing District 2,675,020 Grants Fund 800,000 Transit System Fund 3,189,830 Aviation Facilities Fund 1,136,650 Law Library Fund 0 Road Maintenance Fund 36,732,494 Fleet Management Fund 17,347,316 Information Technology Fund 17,118,453 Risk Management Fund 23,191,500 Utility Fund 71,778,919 Stormwater Fund 9,633,418 Refuse Services Fund 13,582,526 Schools Fund 242,729,720 $882,100,325
GENERAL FUND REVENUE
*$7.3M in revenue from Capital Reserve – Fund Balance
FY 24 Budget FY 25 Recommended Incr./ Decr. Percent Change General Property Taxes $ 195,389,609 $ 211,176,205 $15,786,596 8% Other Local Taxes 57,606,203 59,668,872 2,062,669 4% Fees, Charges, Misc. 10,041,018 12,658,769 2,617,750 26% State/Federal 29,308,741 30,283,298 974,557 3% *Fund Balance/Transfers 2,904,500 10,426,158 7,521,658 259% $ 295,250,072 $ 324,213,302 $ 28,963,230 9.8%
GENERAL FUND REVENUE
General Property Taxes – 8% increase - $15.8M
Real Estate – 7% increase - $11.4M
5.41% overall increase in Assessed Values
Public Hearing required for “Effective Rate Increase” due to reassessment growth of more than 1% per Section 58.1-3321 of State Code
Personal Property - 13% increase - $4.0M
Public Service Corporations – 4% increase - $200K
Penalties and Interest – 13% increase - $200K
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Reassessment 2.86%
New Construction 2.55%
GENERAL FUND REVENUE
Other Local Taxes – 4% increase - $2.1M
Sales and Use – 6% increase - $1.0M
Meals – 3% increase - $500K
Business License – 5% increase - $500K
Motor Vehicles – 8% increase - $200K
Utility Taxes – 2% increase - $100K
Admissions – 100% increase - $100K
Bank Stock – 9% increase - $60K
Recordation – 18% decrease - $(400K)
GENERAL FUND REVENUE
Other Revenue Sources
Permits, Privilege Fees – 1% decrease – $(20K)
Fines & Forfeitures – 3% decrease – $(20K)
Use of Money & Property – 85% increase - $2.0M
Charges for Services – 9% increase – $384K
Miscellaneous/Recovered Costs – 18% increase – $258K
State & Federal – 3% increase - $974K
GENERAL FUND EXPENDITURES
FY 24 Budget FY 25 Recommended Increase/ Decrease Percent Change General Government $ 15,929,503 $ 17,496,137 $ 1,566,634 10% Judicial 11,731,978 12,768,222 1,036,244 9% Public Safety 85,675,647 95,313,364 9,637,717 11% Public Works 6,908,761 7,652,961 744,200 11% Health & Welfare 18,108,027 19,112,866 1,004,839 6% Education 69,775,180 76,071,903 6,296,723 9% Parks, Recreation, and Cultural 15,745,726 17,542,693 1,796,967 11% Community Development 11,553,012 12,785,397 1,232,385 11% Other Public Services 1,885,955 2,070,979 185,024 10% Non-Departmental 57,936,282 63,398,779 5,462,498 9% $ 295,250,072 $ 324,213,302 $ 28,963,230 9.8%
Public Safety 30¢ Education and Related Debt 27¢ Capital Pay-Go 7¢ Debt Service 7¢ Health & Welfare 6¢ Parks, Recreation, & Cultural 6¢ General Government 5¢ Judicial 4¢ Community Development 4¢ Public Works 2¢ Non-Departmental 1¢ Local & Regional Organizations 1¢ $1.00
TAX DOLLAR FOR CITY SERVICES
GENERAL FUND EXPENDITURES
Personnel and Benefits $10.7M
38 New Positions
4% Cost of Living Adjustment (COLA)
One Step increase for Sworn Police Personnel
Step Plan Adjustments for Qualifying Employees
Market Adjustments/Regrades/Reclassifications
VRS Rate Increase and Calculation Change Schools $ 6.3M
$4M Operating/Sink Holes+ $2M (Mid-Year FY 24)
$296K School Administration/Operations Center Leases Transfer to Capital Projects $ 5.0M Internal Services
Information Technology (Hardware, Software, Applications, Maintenance Contracts)
Fleet (Fuel, Parts, Supplies)
Risk (Health Insurance) Department Operating Expenses $ 2.3M
Professional Services, Maintenance Contracts
Supplies, Equipment, Other Operating Debt Service $ .8M
$ 3.8M
OTHER FUND HIGHLIGHTS
Refuse Fund
Current service levels maintained for trash pickup and recycling No rate adjustment - $25.25 per month Refuse fee despite increasing recycling costs and need to replace trash trucks
$2.4M budgeted from Refuse Fund Balance for replacement of trash trucks and rate stabilization Stormwater Fund No rate adjustment - $7.50 monthly Stormwater fee per ERU $800K increase in debt service (third consecutive year of debt issuance for stormwater capital projects)
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OTHER FUND HIGHLIGHTS
Public Utilities Fund
No increase in ERUs (550 projected)
Increase in Bulk Water Contracts with Norfolk and Portsmouth ($441K increase)
• Portsmouth – 6% rate increase
• Norfolk – CPI increase
1 new position – Programmer Analyst
Modest increase in water/sewer rates
Average customer will see increase of $2.95 per month or 2.8% in combined water and sewer bill excluding HRSD charges
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FY 24 FY 25 Change Water Rate per 100 cubic feet $10.63 $11.10 $ .47 Average Water Bill (5 ccf) $53.15 $55.50 $2.35 Sewer Collection per 100 cubic feet $7.56 $7.68 $ .12 Average Sewer Bill (5 ccf) $37.80 $38.40 $ .60 Meter Service Charge $15.25 $15.25 $0.00 Avg. Combined Bill (Water/Sewer) $106.20 $109.15 $2.95
