City of Norfolk Community Outreach Program for FY 2013 Overview
The City of Norfolk values feedback from residents in developing a foundation for a well managed government. The current economic backdrop provides an opportunity for building community understanding of the fiscal challenges facing Norfolk so that, through resident input, spending priorities, service delivery strategies, and savings strategies may be determined. To achieve this understanding and promote meaningful dialogue, multiple forums are available. During the month of January, five Community Conversations will be held in locations throughout the city. In addition, an online public forum will be available through the city’s website as well as mail-in “Community Input” forms that are available at libraries, recreation centers, and City Hall.
The FY 2013 budget process continues to build on the principle of establishing a Well-Managed Government: establishing a data-driven organization which provides effective and efficient City programs and services that are responsive, accountable, inclusive and customer focused.
City of Norfolk Priorities Under Discussion • • • • • •
Accessibility, Mobility & Connectivity Economic Vitality and Workforce Development Environmental Sustainability Lifelong Learning Safe, Healthy and Inclusive Communities Well Managed Government
City of Norfolk
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FY 2012 Budget Overview Real estate taxes are the single largest local revenue source. Due to the lag in property assessments vs. market activity, the decline in the housing market in 2009 was not reflected in real estate assessments until FY 2011. That lag continues into FY 2012. Other Sources & Transfers 3.8%
General Property Taxes 31.1%
Federal Aid 1.6%
Real Estate Tax 24.9%
Revenue from the Commonwealth 36.1%
Non-Locally Generated Rev enue $299,658,900 (37.7%)
Revenue from Local Sources $465,418,300 (58.5%) Other Local Taxes 19.0%
Other Local Revenues 8.5%
30 25
Annual Percentage Change in Real Estate Assessments (fiscal year)
20 15 10 5 0 -5
9.5 8.6 8.7 9 8.1 8.7 9 7.8
16.8
17.5
10.5 6.7 3.7
2.2
1 0.8
0.5 -0.3
2.2
4.7 3.5 3.2 4
5.9
7.5
5.8 2.6
-3.1-3.5
2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 1997 1996 1995 1994 1993 1992 1991 1990 1989 1988 1987 1986 1985 1984 1983 1982 1981
-10
11.410.6
24.9
•
The last time the real estate tax rate changed was in FY 2008, from $1.27 to $1.11.
•
In FY 2008, the average homeowner paid $2,490 in real estate taxes
•
In FY 2012, the same homeowner will pay $2,350, saving the homeowner $140.
•
Each penny of the real estate tax rate is equal to $1.6 million in revenue to the city.
•
If the real estate tax rate was increased by 1-cent increase in FY 2012, the average tax bill for the same homeowner would be an additional $2.50 more per month.
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City of Norfolk
General Fund Expenditures—How each dollar is used Health & Debt Human Public Safety Payments Services 10¢ 8¢ 13¢
Education 37¢
Parks, Recreation, Cultural & Community Development 7¢
General Judicial Government 6¢ 12¢
Outside Agencies & Central Appropriations 7¢
Increased Expenditures in the General Fund The city’s retirement contribution and healthcare expenditures doubled over an eight year period. Debt service payments on bonds increased by at least 50 percent over the same time period. Key Budget Drivers - General Fund
$ in millions $90
$78.9
$75 $60
FY 2004
FY 2012 Budget
$48.1
$45
$35.3
$30 $15 $0
$22.2
$14.3
Retirement - City
$10.8
Healthcare
Debt Service - Bonds
City of Norfolk
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Norfolk Public Schools (NPS) Funding The City of Norfolk values its partnership with Norfolk Public Schools, the largest urban school division in the Commonwealth. NPS’s mission is to educate each student to be a successful, productive contributor to society by providing powerful teaching and learning opportunities. The city provides 36.5 percent or $290,550,500 of its general fund to support NPS. In addition to the local contribution, the city provides support for NPS valued at almost $15 million for grounds maintenance, facility maintenance, school nurses, debt service payments, school crossing guards and school resource services. The city’s FY 2012 Capital Improvement Plan (CIP) includes $9.8 million to compete the construction of the new Crossroads K-8 school and continue funding for a second construction project. The five-year CIP includes $46.5 million for school construction and $3 million annually for major facility maintenance. Norfolk ranks in the in the top 25 percent for per pupil expenditures
Per Pupil Expenditure Comparison $11,600 $11,400 $11,200 $11,000 $10,800 $10,600 $10,400 $10,200 $10,000 $9,800 $9,600 $9,400
$11,324 $11,141 $10,946 $10,706 $10,352
$10,459
$10,089
Suffolk
Portsmouth Chesapeake
Virginia Beach
Newport News
Hampton
Norfolk
Source: Fiscal Year 2010 - Virginia Department of Education’s Superintendent's Annual Report for Virginia
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City of Norfolk
City support for Norfolk Public Schools (NPS) operating budget has remained constant Source
FY 2007
FY 2008
FY 2009
FY 2010
FY 2011*
FY 2012*
City
$97.6
$101.1
$104.5
$101.1
$104.5
$104.5
State
$200.2
$202.0
$207.7
$207.9
$179.9
$171.3
Other Local
$4.1
$5.3
$4.4
$3.6
$5.6
$4.1
Federal
$7.9
$5.8
$7.4
$6.2
$5.5
$10.5
$309.7
$314.2
$324.0
$318.7
$295.7
$290.6
% of City Support
32%
32%
32%
32%
35%
36%
% of State Support
65%
64%
64%
65%
61%
59%
Total
Amounts shown in millions. * Represents budget amounts.
The Commonwealth requires each locality to provide a match for its local school system. This match is called the required local eort. The City of Norfolk has consistently provided more than its required match. In the 2012 ďŹ scal year Norfolk will provide 117 percent more than the required amount.
City of Norfolk
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What does it cost? Item
Average Cost * Vehicles
Fire Engine - Ladder Fire Engine - Telesquirt Ambulance Fire Pumper Marked Police Vehicle Trash Truck Compact Pickup Sedan (mid size)
$691,000 $640,000 $227,000 $515,000 $32,000 $260,000 $14,000 $14,000
Personnel Average salary - teacher $50,758 Average salary - full time city employee $44,365 Infrastructure Debt service will cost $1 million in CIP $18,000 in interest the ďŹ rst year, and $98,000 each year thereafter One Mile of Asphalt Street Resurfacing $74,000 (approximately 2,100 lanes miles in the city) One Street Light (average cost for $3,600 installation) One TraďŹƒc Signal (installation of new $275,000 signal) Resurfacing Parking Lot $3,300 per space Build a Community Center (Approximately $206 per square foot 25,000 sq ft) Construct Parking Lot $1,400-$1,500 per space * Average cost based on historical expenditures.
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City of Norfolk
Potential Efficiency Initiative As a well managed government, the city continues to identify efficiency opportunities that will improve service delivery at the lowest possible cost. The city’s efforts will result in being more customer-focused while ensuring core services are protected. Many of the efficiency opportunities now under review were brought forward by Norfolk residents during last year’s community outreach meetings. Examples of these are: • • • • •
Permitting process Code enforcement Energy efficiency Recreational programs Refuse collection
These and other efficiency reviews are grounded in: measuring performance for each program; identifying areas of overlap and areas for cooperation; focusing on process improvements; and focusing on achieving desired outcomes.
City Council
Community Conversation Timeline Date
Event
Saturday, January 7
Norview Community Center 11:00 am –1:00 pm
Thursday, January 12
Campostella Elem. School 6:00 pm—8:00 pm
Thursday, January 26
Mary D. Pretlow Library 6:00 pm—8:00 pm
Andrew A. Protogyrou Ward 1
Monday, January 30
Dr. Theresa W. Whibley Ward 2
Tuesday, January 31
Lamberts Point Community Center 6:00 pm—8:00 pm Third Patrol Division 901 Asbury Avenue 6:00 pm—8:00 pm
Paul D. Fraim Mayor Anthony L. Burfoot Vice Mayor Ward 3
Paul R. Riddick Ward 4 Thomas R. Smigiel Ward 5 Barclay C. Winn Ward 6 Angelia M. Williams Ward 7 Marcus D. Jones City Manager
Development of the budget requires an understanding of the priorities of the community, analysis of what the city can afford, and a focused allocation of resources. The community outreach program provides specific opportunities for the city to listen and learn from the community. Please visit www.norfolk.gov to post your comments and suggestions in the public forum. This forum is moderated by a third party. You may post anonymously or include your name. Citizens can also use mail-in “Community Input” Forms. Stop by any library branch, recreation center or City Hall and mail it to the Department of Communications.