Fiscal Year 2024 Adopted Budget

ADOPTED BUDGET

FY 2024 ADOPTED BUDGET TABLE OF CONTENTS

FY 2024 CITY OFFICIALS

CITY COUNCIL OFFICIALS

Andrew O. Trivette

CITY MANAGER

Michele Mixner Dewitt ASSISTANT CITY MANAGER

Christina Shelton CITY ATTORNEY

Dustie McCay CLERK OF COUNCIL

Barbara Dameron DIRECTOR OF FINANCE

Mark A. Barham CHIEF INFORMATION OFFICER

Daniel G. Clayton* DIRECTOR OF PUBLIC WORKS & UTILITIES

Sean Dunn POLICE CHIEF

Larry W. Snyder, Jr. FIRE CHIEF

Robbi Hutton DIRECTOR OF PARKS & RECREATION

Tevya Griffin DIRECTOR OF PLANNING & CODES COMPLIANCE

Wendy Evans DIRECTOR OF HUMAN SERVICES

Yuri Adams DIRECTOR OF ECONOMIC DEVELOPMENT

Douglas G. Pons MAYOR

W. Pat Dent

VICE MAYOR

Stacy Kern-Scheerer MEMBER

Caleb T. Rogers MEMBER

Barbara L. Ramsey MEMBER

GOVERNMENT FINANCE OFFICERS ASSOCIATION Distinguished Budget Presentation Award

For the Fiscal Year Beginning

July 01, 2022

Executive Director

CITY OF WILLIAMSBURG ORGANIZATIONAL CHART

CITY OF WILLIAMSBURG BUDGET PROCESS FLOW

OCTOBER

OUTSIDE AGENCIES

CFO, Tourism and Human Services send outside agency notices.

BUDGET GUIDANCE

CFO and Manager provide budget guidance to staff.

FEBRUARY

BUDGET RETREAT

City Council holds Budget Retreat

MARCH

CITY MANAGER’S BUDGET

APRIL

PUBLIC REVIEW

City Council holds public hearings on budget proposal and advertises planned tax rate.

JULY

FISCAL YEAR BEGINS

Virginia fiscal year begins July 1 and runs through June 30.

OCTOBER AUDIT

An independent auditor conducts onsite review of financial reporting and compliance. The audit is reviewed with the Finance and Audit Committee.

After input from PC and EDA the City Manager delivers a proposed budget.

MAY

BUDGET ADOPTION

City Council adopts the budget in May of each year, setting the tax rate.

WATCH HERE

AUGUST

MID-YEAR ADJUSTMENTS

Staff presents the current budget forecasts for FY end and recommends any adjustments through June 30.

NOVEMBER

ACFR

The Annual Comprehensive Financial Report relates the actual performance of the City’s budget plan.

VIEW HERE

BUDGET MESSAGE

CITY MANAGER’S STATEMENT

I am pleased to present the City Manager’s proposed budget for Fiscal Year 2024 (FY24) and the associated five-year Capital Improvement Plan.

It’s interesting to consider the parallels between the City of Williamsburg’s last five budget years and a marathon that has no definitive beginning or end. Like any runner in a race, fueling the body is a paramount concern while focusing on pace and forward momentum. In recent years the City has been engaged in a similar activity. We have fueled the budget by building capacity for generational capital improvements. The result is compelling. Our forward momentum is undeniable with a state-of-the-art fire station nearing completion and designs underway for a similar police station and a regional sports complex.

Progress is not just limited to capital projects. We have also made strides to fuel the operating budget by strengthening the reserve post-pandemic and improving employee salaries so we are prepared for the next leg of the marathon and have the right talent to meet the increasing demands of the course.

The City of Williamsburg has never been satisfied to run with the pack. The proposed FY24 budget is designed to give us the fuel required to set the pace. Our One Williamsburg vision includes the aspiration that your city government will be a model for others to follow. Pursuing that vision for the Williamsburg of 2040, we entered this budget cycle with three significant goals: finalize the necessary funding to build a new downtown library; improve the benefits package for City employees; and eliminate the City’s reliance on funds from the U.S. Housing and Urban Development.

Every course has unique challenges, and runners must adjust their strategies mid-race. We entered this year’s budget process equipped with increased revenue from improving visitation and rising property values, and expected to satisfy our three goals completely. However, the same financial pressures you are facing in your home, the City is facing in its budget. The cost of doing business has significantly increased due to the pandemic, unprecedented inflation, and changing workforce expectations.

Additionally, the Williamsburg-James City County Schools system increased its funding request by $10.4 million to accommodate a 10% staff raise. Based on the City’s student population, our share of any increase would be about 10%. Though teachers and support staff deserve additional compensation, a compromise is necessary to adjust our course strategy.

These restrictions resulted in tough decisions regarding our pace. This budget includes a $1,795,725 increase in nondiscretionary spending; a $2,408,641 increase in discretionary spending; no change in the utility rate; a funding strategy for the library; a plan for HUD separation; $691K increase for teacher raises.

And all of this while maintaining the lowest tax rate of any city in the state, 62 cents per $100 of assessed value. Our marathon may not have a finish line, but we are indeed setting the pace for the rest of the pack. We can see clearly the route ahead and despite there being future challenges in the course, we are fueled and ready to meet them.

Andrew Omer Trivette

City Manager

Andrew Omer Trivette, AICP, ICMA-CM

Andrew Trivette was appointed to the role of City Manager in 2018 after joining the City team as Assistant City Manager in 2016. He has 23 years experience in local government.

Finance Director

Barbara Dameron, CPA

Barbara Dameron was hired as the City’s Finance Director in 2018. She brings to the City more than 20 years of government finance accounting experience. She is a CPA and a former president of the Virginia Government Finance Officers Association.

Budget Manager

Alice M. Kelly, CPA

Alice Kelly was hired as Budget Manager in 2020. She has worked in local government since 1990 in operational, finance and budget departments. She is a CPA and a former board member of the Virginia Government Finance Officers Association.

BUDGET DRIVERS

$10,207

COST PER STUDENT

The City’s participation in the joint school system is predicated on a five-year contract. FY24 will be year two of the newest version of that contract. During this school year, the City has 1,017 students enrolled. The cost to the City per student for the operation of the school system is $10,207.

A significant challenge for the Williamsburg-James City County School system is recruiting and maintaining the stellar educators who consistently propel our PUBLIC EDUCATION system. The profession grows harder and more demanding with each passing year. This year it is anticipated that the Commonwealth’s budget will include a 7% increase in pay for some, but not all, teachers and staff of WJCC. In addition, the school board and the administration recognize the need for an improvement in the pay scale to remain competitive. These operational needs combined with significant capacity improvements result in a strain on the City’s limited revenue streams. This year, the school district requested a total of $10.8M in operating funds from the City, which includes a 10% raise for all WJCC staff and is a $1.1M increase over last year. The district also requested $165M in total capital funds, $105M of which funds additional pre-k facilities and a 10th elementary school to add capacity over the next five years. Given the significant demands on the City’s overall budget and our school contract with James City County, this budget includes a $10.4M in operating funds for WJCC, which is an increase of $691K, and 77.8% of the requested capital funds. The total contribution to WJCC is $14.2M, which is 16.4% of the City’s total budget.

Each year, we make improvements that increase the appeal of Williamsburg as a premier destination and home. This desirability translates to increased property values as market demand increases and sales values climb. Ultimately, the impact on property owners is positive in the form of improved equity and value. Increased ASSESSED VALUES results in a higher tax bill, which could be considered a negative. The City strives to capture 100% of a property’s value in the annual assessment. This year, the community benefited from a change in process that resulted in the assessed value of each property and its resultant tax impacts being known before the adoption of the budget. Overall, the total value of the City increased, less new construction, 14.3% while residential properties only increased 11.9%, generating $2.4M in new revenues available to meet service demands.

8.6%

U.S. INFLATION RATE

≤$50

TAX BILL INCREASE

With the expected real property assessed value increase, property owners can expect to pay a higher tax bill. The average residential property is valued at $443,227 and will have a new tax bill of $1,374 biannually. The City bills twice per year. Fifty-two percent of real property owners are mortgage holders and pay their taxes monthly as part of their mortgage payment. Eighty-five percent of the mortgage holders would see an increase of $50 or less per month.

Unprecedented inflation has impacted so much of what the City does. A high inflation rate, coupled with an 8.6% nationwide costof-living increase, has resulted in much higher costs to provide services. The impacts stretch further than the cost of goods. Some of the City’s revenues are based on investment returns. Much of the City’s capital projects are financed with debt. The federal government combats inflation by raising interest rates, which increases the cost of money and more than offsets investment returns.

Currently, the world is gripped by economic uncertainty. Much of that uncertainty and the continued impacts on supply chain following the pandemic is driving unprecedented INFLATION. The cost of goods, such as fuel, office supplies, and energy, have increased exponentially, and the City’s budget must adapt to accommodate these nondiscretionary increases.

45%

DEBT SERVICE MET

The long-term financing strategy for the library project includes bonding the total cost. To proceed with this plan of financing, the City must allocate $1.3 million annually toward satisfying the debt service required. The true cost of this project will not be known until proposals are received and evaluated.

A significant constraint in this year’s budget development was the effort to allocate enough of the new revenue to the City’s STRATEGIC PRIORITIES such that future tax increases are less likely. Several years ago, the City Council embarked on a plan to renovate or reconstruct the Williamsburg Library. To fully meet the needs of the regional library system, a new library should include 55,000 square feet. Current estimates for the cost of this project top $55 million. However, Williamsburg residents constitute only 12.7% of the users. This budget proposes $20 million toward this cause in the hopes that our regional partners will collaborate on a library space that is adequate to the demand of the region. Financing this debt in the long term requires $1.3 million in recurring revenue each year. This budget only achieves $590K of that amount. A second priority is finalizing the merger of the Williamsburg Redevelopment & Housing Authority with City government and the renovation and reconstruction of aging public housing. To facilitate the completion of this merger, which began in FY13, the City needs to offset the loss of $750,000 in HUD funding annually. This budget achieves $250,000 of that total, making this priority a three-year strategy.

SPECIAL FUNDS

CIP FUND

The Capital Improvement Plan (CIP) Fund is a five-year plan for major infrastructure projects. The FY24 CIP has projects totaling $23M — $19.2M in City projects and $3.8M for the City’s share of schools projects. This is a decrease of $22.7M since last year. The FY24 projects are funded by $6.2M in sales tax and interest income, $4M in bond financing, $5.3M in grants, as well as $5.2M from the CIP reserves, $1.8M from a transfer from the Utility Fund, and $500K from the Budget Stabilization.

The strain of keeping pace with the infrastructure replacement needs for the City continues to burden the Capital Improvement Fund. The challenge of the capital plan has been, and continues to be, replacing so much of the core infrastructure at the same time. Funding the construction of a fire station ($15.1M), police station ($17.5M), public works yard ($2.4M), expanded municipal office space ($1.6M), library ($20M), and reconstruction of the Blayton Building ($6-8M) is a $62-64M investment in facilities, which is a substantial undertaking for a locality whose operating budget is routinely $62M when one-time revenues are not considered.

To meet this challenge we have, over the last several years, buttressed the Capital Improvement Plan with reserve funds dedicated to specific projects, grant funding, and delayed spending.

Such a large transfer from the General Fund would not be possible if not for the ARPA funding the City received and the ability to use these funds as revenue loss to provide for government services. Using this transfer, in conjunction with the bond issues, allows the City to fund needed generational projects included in City Council’s Goals, Initiatives, and Outcomes and at the same time offer a lower tax burden. Projects, such as the police station and school construction and expansions, will not be needed again for another 40 to 50 years. The performing arts complex, Research Village, new downtown library, Blayton Building redevelopment, affordable housing, and improvements to City parks bolster the City’s economic base and serve our residents. The City is fortunate to have the opportunity to fund this scope of reformative projects.

ARPA (PANDEMIC RELIEF)

As the pandemic ravaged the nation, the federal government and the Commonwealth worked to provide financial relief to the local governments closest to the people affected. By the close of FY22, the City had benefited from the receipt of $21,221,044 in pandemic relief funds. These funds included $18,419,663 from the American Rescue Plan Act (ARPA), which the City used to replace lost revenue. The qualified recovery funds enabled the City to develop a strategic investment plan following a public survey and the input from a steering committee. Many of the projects identified for funding are intended to represent investments that will provide returns when completed. Some funds have been made available to advance City operational needs, programming expansion, and stabilization of the existing capital projects schedule. The seed money for these investment projects is intended to sow opportunity, which requires time to realize. Each month, the City Council receives a report concerning project progress, and the staff continues to pursue development opportunities that satisfy the intent identified by the community, the stakeholders, and the policymakers.

SPECIAL FUNDS CONT.

TOURISM FUND

The Tourism Fund invests in tourism products and infrastructure that will generate visitation to Williamsburg, providing revenue streams that increase business investment in the community and help fund government services for residents while maintaining low tax rates. The fund is a repository for all tourism-dedicated revenues and expenses, which provides better transparency to the community. The Tourism Fund is supported by revenues from the $2 per night per room tax, the City’s share of the 1% Historic Triangle sales tax, and a transfer from the General Fund.

Revenue from the regional 1% sales tax is split in half for use toward regional marketing efforts and for use at the locality’s discretion. When this tax first implemented in 2017, the City elected to use its share of the funds to create a tourism development grant program, with available annual funds totaling around $2.4M. Following a brief pause in the grant program to allow the funds to offset revenue loss due to the pandemic, the application cycle was reopened in FY23. Eleven applications were submitted, representing $35.8M in total requested funds. The Tourism Development Grant Review Committee is charged with evaluating the applications and recommending projects for funding to the City Council. Funds available for grant awards in FY23 are $1.8M. It is anticipated that an additional $900K will be available by the end of FY23. In addition to this grant program, the Tourism Fund provided $2.3M for debt service on the regional indoor sports complex in FY23, with another $1.2M provided in the FY24 budget.

The Tourism Fund’s total revenues in FY23 are expected to be $5.5 million. Revenue estimates from sales tax have increased about 20% compared with the FY23 budget, while the estimate for the $2 lodging tax has increased 3%. The sales tax estimated revenue for FY24 has exceeded the pre-pandemic FY19 actual revenue by 13%; however, the $2 lodging tax estimated revenue is below the FY19 revenue by 13%. In addition to funding the grant program, the Greater Williamsburg Chamber of Commerce, and the Tourism Council, the FY24 proposed budget sends half the $2 lodging tax - $469,720 – to the state for redistribution to the regional Tourism Council.

UTILITY FUND

The City of Williamsburg operates a water and sanitary sewer utility using the enterprise Utility Fund. In operation since 1927, the utility has been well-managed and well-funded with historically low rates. Recent years have seen the narrowing of the margins in this fund due to conservation efforts and improvements in lower demand fixtures. A rate increase is likely if the general trend toward reduced consumption and increased costs continues. As the utility system ages, additional capital expenses are anticipated and operating capital continues to be a concern. The anticipated rate increase will be required to offset deficits. Fortunately, the City offers the lowest utility rate in the region and likely will continue to do so even with a modest increase in rates.

DEBT

Cost for 5,000 Gallons

The City uses debt as a tool to make money go further. By bonding expensive projects such as fire stations, police stations, and schools, our annual commitments to these projects are less and we can accomplish more in a truncated timeline. However, like any wise account holder, we must monitor the amount of debt and the associated debt payment so as not to choke the available revenue for other projects to proceed.

As of June 30, 2023, the City’s outstanding debt totals will be $39.9M. A portion of the outstanding debt refunded the Series 2010 and 2012 debt, and the remainder was new financing for the fire and police station projects, the Public Works relocation/expansion, and to address space needs in the Municipal Building. The debt service, or annual debt payment, totals $2,961,141 during FY24, of which $518,427 is funded from the Utility Fund, with the remaining $2,442,714 funded from the general government Capital Improvement Fund. This budget includes requested expenses associated with school projects such as a pre-K facility in FY24 and a 10th elementary school in FY27-28. Should these projects proceed on schedule, they too may need to be bonded.

Monthly

WHAT IS INCLUDED

General Fund Budget FY24 compared to FY23

(10.5% total increase)

STRATEGIC PRIORITIES

This year’s budget process began with three strategic priorities, which help to fulfill the City’s 2040 vision. The first of these priorities is to complete the funding plan for the replacement of the Williamsburg Library. At present, this project is expected to total $20M. Our intent is to fund this project using bonds and create a debt service reserve fund of $1.3M to support future bond payments for this project. After adjusting available funding due to the heightened request from WJCC Schools, this proposed budget funds 45% of the need. The second priority is to facilitate the complete merger of Williamsburg Redevelopment & Housing Authority with City government. The complete merger of the two entities requires the City to provide WRHA with equivalent funds ($750K annually) to the HUD subsidy they currently receive. This budget accomplishes 33% of that target. The third and final priority was to adjust the City’s benefit package to remain competitive in a challenging employment market. One key benefit being restored is a retiree healthcare subsidy. The budget includes the full cost of this priority, $252K.

NEW FTE

The City of Williamsburg operates with a small staff of 229.5 full-time-equivalent (FTE) positions. The FY24 budget adds one full-time Williamsburg Redevelopment & Housing Authority Administrative Coordinator; converts one part-time Information Technology position to full-time; and converts one contract city attorney to a full-time position. These three changes raises the number of FTE to 232 and totals an increased cost of $178K.

PERSONNEL PAY INCREASE

$853K

Each year the City attempts to keep salaries competitive with regional and local governments so that we can attract and retain the best and brightest talent. This means adjusting salaries for cost-of-living increases and rewarding performance. This year the federal government estimates the cost of living to increase 8.6%. However, increased operating costs limits the City’s planned personnel pay increase to 5%.

EXPENDITURES

SCHOOL REQUESTS

$691K

Public education faces the same salary and staffing challenges as the City. This budget provides 95.7% of the City’s share of the schools’ requested $10.8M, which they hoped would facilitate a 10% raise for all staff.

BENEFIT ENHANCEMENTS

$252K

A robust benefits package, including retirement healthcare, deferred compensation, sick leave expansion, and disability insurance, is essential for employers to attract and retain top talent and promote employee well-being.

FIRE STIPENDS

$192K

In FY23, James City County adjusted stipends for certifications and education related to public safety. To remain competitive and attract ALS providers, the City is proposing a $5,750 increase in ALS certification stipends, which would total $192K in FY24.

WHAT IS NOT INCLUDED

REMAINING NEEDS

Unfortunately, even with some additional revenues expected, not every identified need can be met. During budget development, all of the Departments and Constitutional Officers were consulted as to their identified needs. These needs totaled $3.8M. We were able to accommodate $2.7M of these requests, leaving $1.1M in needs unmet.

STRATEGIC PRIORITIES

Two of three identified strategic priorities were unable to be completely funded in this budget. To accomplish the goals represented by these financial targets, additional funding will be required in future years. The priorities included a long-term funding plan to replace the Williamsburg Library, which still requires 55% of the target equaling $710K. The second priority was completing the merger of the Williamsburg Redevelopment & Housing Authority with the City government. To satisfy this need, an additional $500K will be required in future years.

SIX POLICE OFFICERS & DORA AMBASSADOR

The City currently operates the Williamsburg Police Department with a staff that includes 45 sworn officers and 6 civilian employees. WPD meets the needs of our 15,000 residents using four shifts that consist of three patrol officers, a patrol supervisor, and the on-duty administration. To increase the number of patrol officers from four to five on each shift would require adding six more sworn officer positions at a cost of $552K. Additionally, in 2021 the Virginia General Assembly adopted regulations allowing Designated Outdoor Refreshment Areas, which enables patrons to carry open containers of alcoholic beverages inside a specific outdoor zone regardless of the original vendor. The legislation requires a security plan. For the City to consider recent merchant requests for such a zone, the police department would need to add one DORA Ambassador at the cost of $65K.

CENTRALIZED LANDSCAPING

The City’s beautiful entrance corridors, streetscapes, and common spaces are courtesy of the Landscape Division, consisting of eight employees. The Parks & Recreation Department also employs landscape specialists to maintain the greenspaces associated with all of our parks and fields. We could realize some efficiencies and improved outcomes if we consolidated these efforts and added a certified turf master and arborist at a cost of $165K.

POLICE STIPENDS

The Williamsburg Police Department’s complement of 45 officers includes a host of certifications related to modern and community policing techniques, including de-escalation strategies and mental health support. Rewarding officers for achieving higher levels of education in these important areas of performance should be a retention and recruitment strategy. Similar to the ALS certification stipends in the Fire Department, the Police Department is developing a stipend policy that requires similar educational rigor. The anticipated cost for this program is approximately $260K.

IN-HOUSE JANITORIAL

Another opportunity for efficiency and improved performance is to abandon the current practice of contracting janitorial services for City facilities and to hire an in-house janitorial staff. Another added benefit to this change is augmenting the current facilities maintenance staff, which would allow our maintenance strategy to evolve from reactive to proactive. The annual additional cost for this initiative would be $74K.

THE FUTURE

THINGS TO WATCH

Being a good steward of the public trust and its money means keeping a focused eye on the future and the trends from the past. Each year the budget process evolves in such a way that risks, exposures, and pitfalls often are revealed. As we think ahead from the development of the FY24 budget, the future is clouded by significant economic uncertainty.

In the previous pages of this message, we have highlighted in several different sections the lack of sufficient funding in this budget proposal to fulfill two of three initial strategic priorities. The first of these is the needed replacement for the Williamsburg Library and the second is completing the merger of the Williamsburg Redevelopment & Housing Authority with City government. The difference between these priorities is urgency. While both are equally important to the future of our organization, only the library project has a timeline for completion. The merger has been underway since FY13 and will only be completed 10 years following the termination of the Authority’s dependence on HUD funding for operation. Moving this timeline forward another one to three years in exchange for funding maneuverability to complete more time-certain projects is a fair exchange. The library project’s timeline is unthreatened by partial funding in FY24. We can advance this project through design and reimburse those expenses following the achievement of full funding of the long-term strategy.

Another area of concern is the health of the Capital Improvement Plan. For several years we have worked to stabilize the CIP using strategies such as transfers from the General Fund, debt funding more projects, establishing individual project reserve funds, and even tax increases to generate more revenue. These strategies have been partially effective. The CIP can support the projects planned by the City of Williamsburg over the next five years and remains healthy with funds available for other projects. However, the addition of $165M in WJCC planned schools projects causes the plan to be unfunded beginning in FY26. Since 2018 the City has presented a CIP in which all five years were balanced. If the WJCC projects remain in the plan, additional revenue will be required.

I have highlighted the growing concerns regarding competitive salaries and benefit programs for City staff and the staff of WJCC Schools. The increasing difficulty to recruit and retain talent in professional positions will heighten this competition regionally. Remaining a premier employer will require continued efforts to adjust our compenstation plans demanding more and more funding.

Finally, the state of economic uncertainty in the United States and internationally is alarming. With a tourism economy so heavily dependent on expendable incomes, the possibility of a recession is a looming threat. Maintaining a high reserve is our best defense. However, additional revenue generation will be required to meet growing demands for service.

THINGS TO CONSIDER

The level of worldwide economic uncertainty makes a budget process like ours much more challenging. However, we can increase our chances of success by considering some steps that will ward off negative impacts.

Predominantly, our six funds that comprise this budget are healthy. The Utility Fund and the Capital Improvement Fund are notable exceptions. Due to increasing costs to provide the service and decreasing consumption, our water treatment utility will very likely need to raise its rates within the next two years. The primary concern with this fund is operating capital. The longer we delay a rate increase, the more we rely on the fund’s reserve to offset losses. This is a negative trend that cannot continue.

Improving the health of the Capital Improvement Plan is infinitely more challenging due to the scope and size of the WJCC Schools projects on the horizon. While we are all frustrated by increasing tax bills, even when they are the result of improved property values, the additional revenue will be imperative as we attempt to balance the budget without a tax increase in future years.

FINAL THOUGHTS

Since 1699, the City of Williamsburg has worked to establish and then maintain a reputation bigger than its size. That reputation includes being known as a stellar tourism destination, an intellectual hub for research and education, a world-class museum to colonial life and the early days of our democracy, and a model of local government performance.

All of our institutions work hard to earn that reputation anew each day. Last year we were selected to receive two awards for our COVID-19 budget strategy for Protecting the Reserve. Winning these awards is an honor for our organization, but more important to me was the confirmation that we continine to strive for a reputation bigger than we are.

Joining this community seven years ago I have had the privilege of seeing it grow through unprecedented challenges and emerge better than before. It is exciting to ponder how we will deploy this same ingenuity to the as yet unknown challenges that lie ahead. One thing is certain: This community’s reputation for excellence is undeniable.

Thank you for the continued honor of serving as your city manager. It is my privilege to offer the City of Williamsburg’s 2024 fiscal year budget for adoption by City Council.

Andrew Omer Trivette

RECONCILIATION OF PROPOSED FY 2024 BUDGET TO ADOPTED FY 2024 BUDGET

The FY 2024 Budget includes a real estate tax rate of 62 cents and addresses funding for the City’s strategic priorities for employee retention and recruitment initiatives, consisting of funding for salary increases and benefit enhancements; partial funding to establish a debt service reserve fund for a new library ($590,000), and partial funding for the City to separate from HUD ($250,000).

GENERAL FUND

The Fiscal Year 2024 budget includes a 5% cost of living increase for city employees and should the Commonwealth of Virginia’s budget a 7% cost of living increase for a portion of city employees, the City Manager is authorized to use a portion or all of the funding allocated for the separation from HUD to provide the same increase for all eligible city employees.

WHERE THE PAST MEETS THE FUTURE

Williamsburg was founded as the capital of the Virginia Colony in 1699 and celebrated its 300th anniversary in 1999. The original capital of Jamestown was the first permanent English-speaking settlement in the New World founded in 1607. Colonial leaders petitioned the Virginia Assembly to relocate the capital from Jamestown to Middle Plantation, 5 miles inland between the James and the York Rivers. The new city was renamed Williamsburg in honor of England’s reigning monarch, King William III. From 1699 to 1780 Williamsburg was the political, cultural, and educational center where the dream of American freedom, independence, and self-government was nurtured by the leadership of historical figures such as George Washington, Thomas Jefferson, George Mason, and Peyton Randolph.1

Williamsburg was one of America’s first planned cities. Laid out in 1699 under the supervision of Gov. Francis Nicholson, it was to be a “new and well-ordered city” suitable for the capital of the largest and most populous of the British colonies in America. A succession of beautiful capitol buildings became home to the oldest legislative assembly in the New World. The young city grew quickly into the center of political, religious, economic, and social life in Virginia.2

Williamsburg also became a center of learning. Famous political leaders emerged from the College of William & Mary, founded in 1693, such as Presidents Thomas Jefferson, James Monroe, and John Tyler. Today, William & Mary is the second-oldest higher learning institution in the U.S.

In 2023, the university ranked No. 41 in National Universities and No. 7 in Best Undergraduate Teaching.3 Although William & Mary has a 330-year history, it remains a cutting-edge research university that is innovative, vibrant, and engaged. As a public university, William & Mary is an important partner in the region’s economic success, both in terms of local and regional impact as it collaborates with businesses, nonprofits, and the public sector to strengthen the economic core.

Eastern State Hospital, the first hospital established in America for the care and treatment of mental illness, was founded in Williamsburg in 1773. The public hospital was built near the College of William & Mary in what is now known as Colonial Williamsburg. The hospital is still in operation today; however, it is no longer in the original restored building but is located on the outskirts of Williamsburg.

In 1789, the capital was again moved, this time up the James River to Richmond, where it remains today. Williamsburg reverted to a quiet college town and rural county seat. In retrospect, Williamsburg’s loss of capital city status was its salvation, as many 18th-century buildings survived into the early 20th century. The restoration of Williamsburg began in 1926, after the Rector of Bruton Parish Church, the Rev. W.A.R. Goodwin, brought the City’s importance to the attention of John D. Rockefeller Jr., who then funded and led the massive reconstruction of the 18th-century city we see today. National attention soon focused on the restoration effort. During a landmark visit in 1934, Franklin D. Roosevelt proclaimed its main thoroughfare, Duke of Gloucester Street, “the most historic avenue in America.”

WILLIAMSBURG TODAY

Today Colonial Williamsburg is still the only place that takes you back to a time when our country was being born, and the ideals that established the United States of America were being defined. In the Historic Area of the City, the 18th century is happening right now. You can step back in time and experience the people who made America.4

Downtown Williamsburg is adjacent to the historic area and offers 21st-century shopping and dining experiences – both indoors and outdoors. From April through November, you can enjoy a Saturday morning at the WILLIAMSBURG FARMERS MARKET. Flowerbeds and benches offer a tranquil setting for market shopping while listening to live music. This award-winning producer-only market offers vegetables, fruit, fish, meats (including free-range chickens, beef, lamb, and pork), artisan cheese, honey, peanuts, baked goods, pasta, handmade soap, potted plants, cut flowers, and many other offerings.

The SHOPS AT HIGH STREET offer the perfect combination of dining, entertainment and shopping. This area also offers a special community of luxurious condominiums, townhomes, and apartments – a vibrant downtown within a neighborly embrace.

Williamsburg’s new city center, MIDTOWN ROW, opened in 2021, in the heart of Williamsburg. This unique experience-based retail, entertainment, and residential district is adjacent to the campus of William & Mary, less than a mile from Colonial Williamsburg, and less than 5 miles from Jamestown, Yorktown, Busch Gardens, and Water Country USA. The development is designed as a pedestrian- and bicycle-friendly community with a village green, where outdoor programming and community events are hosted. Midtown Row includes restaurants, 233,047 square feet of retail shops, 6,219 square feet of premium office space, entertainment, and new residential apartments that accommodate up to 628 residents.

QUARTERPATH AT WILLIAMSBURG is a community designed to support a life of wellness. The neighborhood has walking trails, greenspaces, and world-class healthcare. This mixed-use village also features shops, restaurants, and office space.

One Williamsburg that is courageously leading, innovating a modern city, prioritizing safety and wellness, engaging with our partners, while connecting with the world.

CITY OF WILLIAMSBURG VISION STATEMENT

EDUCATION

WILLIAMSBURG-JAMES CITY COUNTY PUBLIC SCHOOLS (WJCC) serves the students of the City of Williamsburg and James City County. There are 16 schools: nine elementary, four middle and three high schools. Of the 11,642 students served, about 8.8% are City residents.

All WJCC schools have earned full accreditation for the 15th year in a row. WJCC ranked 8th out of 131 Virginia school divisions in Niche’s 2023 Best School Districts rankings, scoring an overall A grade in this rigorous assessment of academic and student-life data.5

TOURISM

Tourism has historically been the economic backbone of this region. The area’s rich history provides a journey into the battles and sacrifices that secured the nation’s liberty and independence. Sharing this history requires both marketing and infrastructure. Legislation passed by the General Assembly of Virginia (Senate Bill 942) on April 18, 2018, creates a revenue stream to assist with promoting the region’s many attractions. The bill established a 1% sales tax for the Historic Triangle (City of Williamsburg, James City County, and York County). Fifty percent of this tax fund goes to the Williamsburg Tourism Council for the marketing, advertising, and promoting of the Historic Triangle as a tourism destination. The other half of this tax is distributed to the locality in which the tax was collected. The City of Williamsburg contributes it s share of the tax to fund the Tourism Development Fund (TDF). The purpose of the TDF is to increase patronage to restaurants, attractions, hotels and events in the City of Williamsburg through financial assistance and reinvestment in tourism products, place-making projects and public-private partnerships. Through an application process, the first series of grants were awarded in 2019. The TDF paused in FY 2020 due to the pandemic and relaunched for its second full award cycle in February 2023.

LOCAL GOVERNMENT

The City of Williamsburg operates under the Council-Manager form of government. The members of City Council are elected at- large and consist of a mayor and four other members. City Council members serve four-year staggered terms, with the mayor selected from among City Council members every two years. The mayor serves as chair of City Council and the official head of City government.

City Council performs the legislative function (establishes laws and sets policy) and appoints a city manager to administer the day-to-day operations of the City and to serve as the chief advisor to City Council.

LOCATION

Williamsburg is in the northern part of the Hampton Roads metropolitan area, located on the Virginia Peninsula and bordered by the counties of James City and York. The City is located along Interstate 64, with easy access to Richmond, Virginia Beach and the East coast. The City has a unique blend of history, tourism, college, and a small-town feel with the benefit of access to bigcity amenities.

The City offers numerous festivals and special events throughout the year, including:

• An Occasion for the Arts – an Arts and Music Festival, complete with food vendors

• Scrumptious – a food and beverage festival

• Winter Blues & Jazz Festival – a four-day jazz festival

• Ampersand International Arts Festival (formerly William & Mary Global Film Festival) – an annual celebration of film and live performances

• 2nd Sundays – an arts and music event held on the second Sunday of each month from March through December

• Grand Illumination – Colonial Williamsburg’s annual winter holiday celebration with unique decorations, musical performances, and fireworks

QUALITY OF LIFE

There is no better place to celebrate our nation’s birth than July 4th in Williamsburg. Activities stretch from morning until after sundown. There are historic re-enactments to enjoy as well as concerts, recreational activities, and a variety of foods –everything from hot dogs to gourmet dining. At nightfall, an amazing fireworks display adds the finishing touch to the celebration in the historic area.

The City of Williamsburg has a strong commitment to providing quality parks, recreation programs, and facilities that make Williamsburg a premier community in which to discover, imagine, and grow. Williamsburg maintains 12 parks that provide residents with varied uses, from passive activities to structured play. Park amenities include playground equipment, sand volleyball, tennis, basketball, picnic pavilions, athletic fields, and outdoor fitness equipment.

Nestled among the trees is the scenic WALLER

MILL PARK, a 2705-acre park. Featured at the park is a 360-acre reservoir that is open for fishing, boating, pedal boating, canoeing, and kayaking. There are more than 7 miles of hiking trails with water and wooded views. Additional park features include an 18-hole disc golf course, a 1.5-acre fenced dog park with agility equipment, playground structures, picnic shelters, grills, wheelchairaccessible docks, and watercraft rentals.

The QUARTERPATH RECREATION CENTER is a 35,000-square-foot facility that offers a wide array of recreational activities and amenities. Various instructional classes, athletic programs for youth and adults, sports camps, open gym time and special events are held throughout the year at this facility. There are four rooms available for rent that are ideal for meetings, sports banquets, birthday celebrations, and other special events.

The PARKS AND RECREATION DEPARTMENT is proud to host a variety of special events throughout the year that contribute to the individual, social, economic, and environmental health and well-being of our community. You can learn to play pickleball at one of our clinics or participate in one of our pickleball tournaments. Bring Fido to Pups in Pastels, our dog Easter egg hunt or our Canine Carnival. Let your kids drop a line at our Kid’s Fishing Derby or go dip netting for the invertebrates that call the reservoir their home in our Water Exploration Program. There are endless opportunities to get outside and get active with Williamsburg Parks and Recreation.

The WILLIAMSBURG REGIONAL LIBRARY (WRL) enriches lives, opens doors to new learning experiences, and welcomes everyone. Offering collections, programs, and services for citizens of all ages, WRL is a key part of our vibrant community. Residents can watch and listen to thousands of streaming movies, music, and audiobooks as well as read ebooks and magazines at wrl.org.

People interested in learning a new life skill such as crocheting, using a green screen, or speaking a new language can access thousands of online instructional videos available on the library website.

Visitors to our library buildings can explore new book displays and discover copies of the hottest bestsellers as well as audiobooks and DVDs, pursue in-depth reading and research, consult expert staff, and experience the visual arts, multimedia presentations, and interactive learning. The library offers a wide range of film series, talks, book groups, concerts, and performances for all ages. Citizens can be part of a local community of readers and learners, make new friends, bring their family to take part in a hands-on learning activity, or just sit back and enjoy a great read. The Regional Library serves Williamsburg, James City County, and York County with two locations: one in downtown Williamsburg and one in James City County. Also available is a mobile library, which has scheduled stops in neighborhoods, adult care facilities, camps, preschools, and schools.

WILLIAMSBURG POLICE DEPARTMENT

The Williamsburg Police Department is celebrating its 35th anniversary as a CALEA-accredited agency, the gold standard in policing.  The WPD is committed to ensuring the safety and security of all residents and visitors to the City through community engagement in all areas of service, including the Neighborhood Resource Officer Program that assigns a dedicated police officer to each neighborhood in the City.

WPD is currently staffed with 47 career personnel who manage approximately 40,000 calls per year. All officers are required to attend Crisis Intervention Training as well as verbal de-escalation training to ensure an officer’s presence creates the opportunity to manage situations without the need for higher levels of force whenever possible.

The WPD is committed to technology as a force multiplier. The department has implemented

a citywide license plate reader program to quickly identify wanted vehicles that enter our community. In addition, officers are required to use body-worn and in-car cameras during police incidents. At the same time, WPD maintains best practice policies to purge data to best protect the rights of residents. This technology and others aid with training, record-keeping, accountability, transparency, and overall efficiency of the agency. A Citizen Advisory Committee recently formed to ensure the WPD is doing its very best each and every shift.

In addition to traditional law enforcement services like prevention, education and responding to police emergencies, officers are equipped with medical supplies, including Narcan and are often the first on scene for life-threatening medical emergencies.

In partnership with our public schools, WPD has assigned an officer to every City school. Events like Coffee with a Cop, Skate with a Cop, and Cone with a Cop offer a casual setting for the community to interact with officers of all ranks.

WILLIAMSBURG FIRE DEPARTMENT

For more than 270 years the Williamsburg Fire Department has protected our nation’s Colonial Capital and stands ever ready to serve all those who visit and call Williamsburg home. Through comprehensive emergency response to all-hazard types and community-focused programs, the department strives to ensure the safety and well being of all.

The Fire Department is currently staffed with 46 career personnel. Personnel are cross-trained to handle both fire and emergency medical services (EMS). In 2022 the department responded to 4,550 calls for service, an increase of approximately 9% over total responses in 2021.

The Department’s Community Risk Reduction Division works to identify and prioritize local risks and to strategically invest resources to reduce their occurrence and impact. This comprehensive approach has several supporting programs like smoke alarm checks and installations, child safety seat education, fire inspections, home safety surveys, and public education events.

In 2022, many of the department outreach services and programs were instated as our community recovered from the pandemic. The department reached more than 1,400 community members through its community risk reduction programs. The City’s Mobile Integrated Healthcare (MIH) program supported more than 60 clients and community members.

The Community Emergency Response Team (CERT) is also a vital outreach program that utilizes community members to assist with the safety and well-being of our neighborhoods and serve as an integral part of the City’s emergency management and preparedness efforts.

VOLUNTEER FIRE & EMS PROGRAM

Since 1754 the Williamsburg Volunteer Fire Department has supported the Williamsburg community. The organization is made up of 26 local and collegiate members. In 2022 members of the program provided more than 4,382 service hours to the community. The volunteer organization is a 501(c)(3) and assists with purchasing supplies and equipment needed to support Williamsburg’s career staff.

POPULATION BY THE NUMBERS Age*

Gender*

8,141 FEMALE

7,121

ECONOMIC STATISTICS BY THE NUMBERS

PRINCIPAL EMPLOYERS

1 Includes part-time and seasonal employees

PRINCIPAL TAXPAYERS

UNEMPLOYMENT RATE & LABOR FORCE

CURRENT & NINE YEARS AGO

Source: Virginia Employment Commission; https://virginiaworks.com/

LAND AREA OF ORIGINAL CITY OF WILLIAMSBURG & SUBSEQUENT ANNEXATIONS

DEMOGRAPHIC & ECONOMIC STATISTICS LAST 10 FISCAL YEARS

CITY

AREA

1 Weldon Copper Center for Public Service - Demographics Research Group, demographics.coopercenter.org

² U.S. Dept of Commerce, Bureau of Economic Analysis, Regional Economic Data—Statistical Areas/Metropolitan Counties by State income & area population figures based on figures for the City of Williamsburg and neighboring James City County combined

³ Williamsburg-James City County Public Schools

4 Virginia Employment Commission; https://virginiaworks.com/

COMMUNITY PROFILE WORKS CITED

1 “The History of Colonial Williamsburg.” Colonial Williamsburg, history.org/Foundation/ cwhistory.cfm. Accessed April 7, 2021.

2 “Brief History.” City of Williamsburg, williamsburgva.gov/490/History-of-City-Government Accessed April 7, 2021.

3 “College of William & Mary.” U.S. News, usnews.com/best-colleges/william-andMary-3705. Accessed April 7, 2021.

4 “Explore Colonial Williamsburg.” Colonial Williamsburg, colonialwilliamsburg.com/explore Accessed 20 August 2018.

5 Williamsburg-James City County Public Schools, wjccschools.org. April 8, 2021

FY 2024 CITY COUNCIL GOALS, INITIATIVES, & OUTCOMES

INTRODUCTION

To advance our City’s vision, every two years the Williamsburg City Council identifies new strategic initiatives for our city government. The Williamsburg City Council and staff are excited to present the 2023 / 2024 Goals, Initiatives, and Outcomes.

In 2020, the City of Williamsburg launched a new vision statement that is meant to carry us through the next two decades. It is our vision for the Williamsburg of 2040, and we will fulfill that vision with a strategic approach.

Goals, Initiatives, and Outcomes (GIOs) provide an expression of priorities, as specific and measurable as possible, and cover a twoyear period. They are not intended to be a comprehensive list of all city services and activities. Instead, GIOs are a concrete, coordinated expression of the City Council’s direction and focus.

The City of Williamsburg has a highly interactive strategic plan that links the GIOs to the City’s strategic plan, performance measures and budget. In the Budget Guide section of the Budget, there are details on the goal-setting process.

To obtain more information about the plan and to follow along with the progress, please visit williamsburgva.gov/dashboards.

VISION STATEMENT

One Williamsburg that is courageously leading, innovating a modern city, prioritizing safety and wellness, engaging with our partners, while connecting with the world.

GOALS

One Williamsburg Courageously Leading Innovating a Modern City Prioritizing Safety and Wellness Engaging with Our Partners Connecting with the World

A welcoming city where all people who live, work, and visit have the opportunity to thrive, regardless of age, race, ethnicity, income, sexual orientation, religion, or gender identity. The culture of our city will promote a variety of housing and employment options that welcome a diversity of backgrounds and opinions.

AFRICAN AMERICAN HERITAGE TRAIL

Convene members of the Descendant Community and other City residents to advise on the content for the African American Heritage Trail; begin construction of Phase 1; and obtain funding for the remaining phases.

CDBG REHABILITATION GRANTS

Pursue the award of CDBG funding for residential improvements in neighborhoods, such as Highland Park, Wales, and Crispus Attucks, to enable aging in place and to preserve affordable housing.

DIRECT LOAN PROGRAM

Identify a lending partner to help the City establish a direct loan program that would assist income-qualified homeowners or homebuyers with home improvements and preservation projects in an effort to make housing more affordable.

HOTEL-TO-AFFORDABLE HOUSING CONVERSION

Consider a revised and improved hotel-to-affordable housing conversion policy that may further convert underperforming hotel properties to restricted affordable housing.

HOUSING NAVIGATION

Evaluate the addition of a housing coordinator position to better identify and secure housing options that serve as emergency, transitional, and affordable housing for residents in need.

MIDDLE HOUSING

Consider necessary zoning amendments to enable the appropriate allowance for affordable accessory units and the possibility of additional low-impact density to create entry- to middle-level housing opportunities in the expensive Williamsburg market.

TRUTH & RECONCILIATION COMMITTEE PROJECTS

Finish the Truth & Reconciliation Committee Report and pursue two recommendations that can be accomplished in the immediate term.

A commitment to leadership that is willing to embrace change with compassion, innovation, and aspiration to serve and engage the community. Our creativity, professionalism, and ability to deliver results will be recognized as a national governance model. Develop the next sustainability ladder for organizational reduction of carbon emissions that includes public education and implement at least two strategies from the ladder.

LEADING

CARBON EMISSION REDUCTION

EARLY CHILDHOOD EDUCATION

Explore Pre-K opportunities in the City as well as before- and after-school childcare programs.

REIMAGINE K-12 EDUCATION

Consider alternatives to the traditional K-12 education model for improved pathways to higher education and certificate programs through coordination with local institutions.

SMART CITY INITIATIVES

Deploy Smart City infrastructure to enable better data collection and policy development in service areas such as parking, downtown trash collection, visitation, air quality, lighting, road conditions, and code enforcement.

GOLF CART COMMUNITY

Conduct a community conversation about transforming Williamsburg into a safe and sustainable golf cart community, as well as draft program guidelines and necessary ordinances for City Council’s consideration.

The equitable enhancement and protection of our entire city’s natural beauty by respecting our past and building our tomorrow. Our modern city will include attractive streetscapes, diverse housing and employment options, inviting public spaces, appropriately located infill redevelopment, and modern connectivity — all to position our city so it can attract the next big opportunity.

CAPITOL LANDING ROAD

Complete utility relocation, install new water main, and begin roadway improvements for the Capitol Landing Road Corridor and intersection of Capitol Landing and Bypass roads.

CITY SQUARE PLAN

Develop a master plan for the continued redevelopment of City Square; demolish and relocate the police station and Public Works Yard; identify and secure additional office space for the growth of core services in the Municipal Building; and initiate construction of a 21st-century library in City Square.

DOWNTOWN VIBRANCY

Complete a final evaluation of the 2018 Downtown Vibrancy Study, identify remaining implementation steps, and make recommendations to City Council.

OUTDOOR DINING

Convert the successful temporary outdoor dining program to a permanent solution that provides necessary flexibility for restaurants and improves the aesthetics and function of the outdoor dining areas on Prince George Street.

PUBLIC ART

Direct the Williamsburg Public Art Council to pursue a downtown fountain feature to serve as an anchor for a children’s park and to complete the plan for a lantern art piece to designate gateway entrances to the City.

RESEARCH VILLAGE

Identify and secure an appropriate site for a mixed-use development that includes a technology focus with research and development, housing, and light commercial spaces.

SIGNATURE EVENT

Find the best partner to design and launch a signature event that builds on the existing City brand as a world-class destination.

YEAR-ROUND EVENTS

Attract regional visitation by partnering with the best possible vendor to provide year-round events that are diverse, exciting, and add to the quality of life for residents and businesses.

Targeted services that support, improve, and sustain individual health and community safety. Our city will proactively address public safety and social health by daring to be creative in our practices as we address homelessness and racial equity, as well as pursue a robust parks and recreation system that reimagines the use of green space.

EMPLOYEE WELLNESS PROGRAM

Expand the City’s employee wellness program to incentivize preventive health measures, provide robust mental health support, and offer rewards for employee well-being.

ENHANCE EXISTING PARK FACILITIES

GOAL 4 PRIORITIZING SAFETY & WELLNESS

Begin the implementation phase of the comprehensive enhancements plan for the City’s Parks & Recreation facilities to boost visitation by constructing public restrooms at Quarterpath Park and installing industrial dog agility equipment at Waller Mill Dog Park.

FOOD TRUCK POLICY

Evaluate the existing food truck policies to streamline the inspection process while continuing to safeguard the public interest.

MENTAL HEALTH & SUBSTANCE USE

Deploy and augment state opioid settlement funds as needed to implement Marcus Alert and One Mind protocols while seeking next-generation community support programs.

PARKS & RECREATION ADA IMPROVEMENTS

Continue to implement changes at public parks and facilities to improve access and use in compliance with the Americans for Disabilities Act (ADA), including path and walkway improvements for spectators and participants at Kiwanis and Quarterpath parks.

PUBLIC RESTROOMS

Identify locations for new public restrooms and construct two new public restroom sites.

Collaborations that re-energize and reimagine relationships with our partners that result in mutual success. The City will leverage our position in the middle of the evolving Hampton Roads/ Richmond Mega Region, establish future priorities with William & Mary and Colonial Williams- burg Foundation, and explore other partnership opportunities. The City will maximize strategic partnerships with James City and York counties, as well as expand our partner base to reinforce our national prominence and top-tier brand.

CEDAR GROVE CEMETERY

Complete negotiations with William & Mary to acquire property for the expansion of Cedar Grove Cemetery to meet 92 years of demand.

LEVERAGE EXTERNAL FUNDING

Improve organizational coordination of state, federal and private sector funding opportunities to augment City funds for project implementation.

PHOTO HISTORY

Work to identify the proper partners to serve as archivists and curators of a rotating photo history display and launch an inaugural exhibition.

REGIONAL RECREATIONAL FACILITIES

GOAL 5 ENGAGING WITH OUR PARTNERS

Begin construction of a regional sports center and initiate a secondary development opportunity, such as an amphitheater, indoor performing arts center, or aquatic center.

RENT READY

Complete initial draft of the Williamsburg Rent Ready program guidelines to include a model lease, landlord-renter curriculum and ordinance for approval and adoption by the City Council.

TOWN/GOWN REPORT

Collaborate with William & Mary administration to develop an initial annual Town/Gown Report to highlight yearly cooperative efforts and student impacts in the community.

Leverage our strategic location on the Interstate 64 corridor to our economic advantage by expanding technology and infrastructure and ensuring the daily mobility of our residents and visitors.

15-MINUTE CITY

Require Williamsburg Area Transit Authority to convert the Colonial Williamsburg shuttle route into a combined urban core route that connects the Colonial Williamsburg Visitor Center, Historic Area, and Transit Center with the Monticello commercial corridor, including pharmacies, grocery stores, and general shopping areas, using a 15-minute frequency and electric bus infrastructure.

BIRTHPLACE OF AMERICA TRAIL

GOAL 6 CONNECTING WITH THE WORLD

Create connections to the future Birthplace of America Trail within the City to include completing the design of and obtaining the funding for Phase 2 of the College Woods Circuit, as well as finding ways to use the Carter’s Grove Country Road as the multiuse trail’s exit toward Fort Monroe.

BUS STOP IMPROVEMENTS

Inventory the bus stops in the city; identify the needed improvements to provide each stop with a defined standard level of service, including a shelter and trash can; and improve 70% of stops to the new standard of service.

BUS TECHNOLOGY

Create a joint committee with Williamsburg Area Transit Authority to benchmark best-in-class route, arrival, and real-time bus tracking technology and to design and implement the new platform.

INTERNET CONNECTIVITY

Support the continued expansion of broadband providers to improve pricing, availability, and speed while seeking an appropriate solution to provide internet connectivity as a next-generation public utility.

MEGA REGION

Establish a position for Williamsburg with the RVA757 Connects Board of Directors in full support of the megaregion concept and the success of the Board’s vision to “improve the economic success and quality of life for everyone in the RVA and 757 regions.”

FY 2024 PERFORMANCE METRICS

INTRODUCTION

The preceding section on the biennial Goals, Initiatives, and Outcomes links the City Council six broad goals to specific accomplishments of 38 initiatives. Further, the preceding section identifies desired community outcomes that relate to each goal.

This next section aligns budget and performance data to the City’s operating departments. For each department, a summary page includes the department mission, expenditures, and staffing, covering four years. Importantly, desired community outcomes related to each department and observed outcomes are shown. Many of these measures parallel the measures arrayed under the six goals in the preceding section, including the National Community Survey (NCS) results and ratings. Comparisons of Williamsburg resident ratings with the national benchmark from the latest 2022 NCS results are shown for service areas.

Finally, under each department are the budgetary Cost Centers that comprise that department. Detailed information, including four years of expenditures and staffing, and performance trends, projections, and targets is presented. Performance metrics –including workload measures, efficiency measures, and other useful indicators of performance – are shown with operating data for the last two fiscal years, the projected number for the current year, and the target or expected number for next year.

OFFICE OF THE CITY MANAGER

ANDREW O. TRIVETTE, AICP, ICMA-CM City Manager

COST CENTERS

To provide leadership, strategic direction, and administrative oversight to all aspects of City operations.

EXPENDITURES & STAFFING

DESIRED OUTCOMES #1

Receive improving National Community Survey ratings for indicators of overall community well-being and value of City services “higher” than the national benchmark.

OBSERVED OUTCOMES

Residents rated value of services for the taxes paid and quality of life “higher” than the national benchmark comparison, with all other results shown as “similar” to benchmark.

NATIONAL COMMUNITY SURVEY

Percent Rating “Good or Excellent”

Overall quality of life in Williamsburg

Williamsburg as a place to live

Services provided by City

Value of services for the taxes paid

NATIONAL COMMUNITY SURVEY

DESIRED OUTCOMES #2

Receive improving National Community Survey ratings for Overall Appearance, Natural Environment and Built Environment “higher” than the national benchmark.

OBSERVED OUTCOMES

The overall appearance and cleanliness and overall quality of new development and natural environment were all ranked “higher” than the national benchmark.

DESIRED OUTCOMES #3

Receive improving National Community Survey ratings for Overall Image, Direction, Opportunities for Participation in Community Matters and Public Information Services “higher” than the national benchmark.

OBSERVED OUTCOMES

Overall image of Williamsburg rated “higher,” with all other responses “similar” to the national benchmark for 2022.

NATIONAL COMMUNITY SURVEY

Percent Rating “Good or Excellent”

Overall image or reputation of Williamsburg

Overall direction that Williamsburg is taking Opportunities to participate in community matters

Public information services

NATIONAL COMMUNITY SURVEY

Percent Rating “Good or Excellent”

Generally acting in the best interest of the community

Overall confidence in Williamsburg government

Overall customer service by employees

Services provided by the City

DESIRED OUTCOMES #4

Receive improving National Community Survey ratings for other Governance survey responses “higher” than the national benchmark.

OBSERVED OUTCOMES

Services provided by the City rated “higher ” than the national benchmark. All other categories rated “similar” to the national benchmark for 2022.

DESIRED OUTCOMES #5

Exceed budget expectations by having operating revenues exceed operating expenditures each year.

OBSERVED OUTCOMES

Revenues exceeded budget in FY 2022 as the impacts of COVID-19 pandemic lessened.

Maintain sound fiscal health by exceeding City Council’s reserve policy of a minimum 35% of operating revenues each year.

OBSERVED OUTCOMES

Shown is year-end unassigned fund balance. Prior to July 1, 2019, the General Fund and the Capital Improvement Fund was combined for reporting purposes. Effective July 1, 2019, the General Fund was reported separately for transparency. The year-end fund balance for FY18 has been restated.

*Unaudited

DESIRED OUTCOMES #6 DESIRED OUTCOMES #7

Maintain annual employee turnover rate of 10% or less of the permanent workforce.

OBSERVED OUTCOMES

This is an indicator of retention of employees who resign, retire, or otherwise terminate employment. Retirements skewed the FY16, FY19 and FY20 results. ICMA reports that average annual turnover rate in 2019 for state and local government excluding education is 19.5%.

CITY MANAGER/HUMAN RESOURCES

EXPENDITURES

PERFORMANCE MEASURES

CLERK OF COUNCIL/COMMUNICATION

ECONOMIC DEVELOPMENT

PERFORMANCE TRENDS & TARGETS

PERFORMANCE MEASURES

BARBARA DAMERON, CPA Finance Director

FINANCE MISSION

COST CENTERS

To provide exceptional stewardship and safeguarding of City assets by maintaining financial management, reporting and internal control systems, with accountability to the public in a responsible and timely manner.

EXPENDITURES & STAFFING

DESIRED OUTCOMES #1 DESIRED OUTCOMES #2

OBSERVED OUTCOMES

Maintain real estate property tax collections of at least 98% annually.

The Finance Dept collects all City revenues, with Real Estate Taxes being the single highest revenue source. Collections are consistently 98% - 99% each year. Staff follow-up on delinquent accounts raises collections close to 100% in subsequent years.

REAL ESTATE TAX COLLECTION RATE

OBSERVED OUTCOMES

Maintain Personal Property tax collections of at least 97% each fiscal year.

Personal property tax collections include the State’s $773K Personal Property Tax Relief Act program each year. Follow-up action on delinquent accounts includes state programs with debt set-off and DMV matching to increase collections in subsequent years.

PERSONAL PROPERTY TAX COLLECTION RATE

DESIRED OUTCOMES #3 DESIRED OUTCOMES #4

OBSERVED OUTCOMES

Maximize yield on investments while maintaining stringent City policy requirements of safety and liquidity.

The City’s investment portfolio diversified earning average yield of 0.95% fully insured by FDIC, with balances in State Local Government Investment Pool (LGIP), Primis Bank, bond proceeds in State Non-Arbitrage Investment pool, SNAP, and interestbearing checking accounts.

AVERAGE RATE OF INVESTMENT RETURN

Percent Rating “Good or Excellent”

OBSERVED OUTCOMES

Maintain residential property assessments at 100% of market value.

The City Assessor closely tracks all property sales — assessments are based on latest market sales of properties with similar characteristics, including neighborhoods.

ASSESSMENT TO SALES RATIO

FINANCE EXPENDITURES

PERFORMANCE MEASURES

REAL ESTATE ASSESSMENTS EXPENDITURES

PERFORMANCE MEASURES

MARK BARHAM Chief Information Officer

MISSION

To provide exceptional information technology systems and services to our customers, both internal and external, that support the mission of the City of Williamsburg in an efficient and costeffective manner.

COST CENTER INFORMATION TECHNOLOGY

DESIRED OUTCOMES #1 DESIRED OUTCOMES #2

OBSERVED OUTCOMES

Respond to all IT HelpDesk service calls in less than two hours.

HelpDesk response time was significantly reduced in FY 2022 with the hiring an additional staff member in the IT Department. Average response time for all HelpDesk service calls since FY 2013 was 2.4 hours.

AVERAGE TIME TO HELPDESK RESPONSE

OBSERVED OUTCOMES

Increase website visitors by 10% annually.

WEBSITE VISITORS

Overall website traffic has slightly increased due to pandemic. Upgrade of the site, along with improved interconnectivity with social media sites will aid in increasing traffic further for this valuable tool.

DESIRED OUTCOMES #3

Expand the use of the City’s website to conduct City business by increasing eGov transactions at least 10% annually.

OBSERVED OUTCOMES

The total number of eGov transactions increased significantly from FY 2013 thru FY 2022. A significant increase in FY 2020 was due to the COVID-19 pandemic.

DESIRED OUTCOMES #4

Increase total dollar amount of online transactions received from residents by 10% annually.

OBSERVED OUTCOMES

$17.1 Million was received for financial transactions over the City’s website from FY13 thru FY22. The increase in receipts over the 10 fiscal years was 245%.

PERFORMANCE MEASURES

SEAN DUNN Police Chief

MISSION POLICE DEPARTMENT

To work in partnership with the residents of Williamsburg, providing a safe and secure environment consistent with community values, with an emphasis on responsive communitybased policing, integrity, fairness and professionalism.

COST CENTERS

LAW ENFORCEMENT OPERATIONS

• Support Services

• Uniformed Bureau

• Investigative Bureau

EXPENDITURES & STAFFING

*City is part of consolidated E-911 operations with neighboring York County

DESIRED OUTCOMES #1

Receive improving National Community Survey ratings for all services provided by the Police Department “Higher” than the national benchmark.

OBSERVED OUTCOMES

The percentage of Williamsburg citizens’ ratings of “good” or “excellent” were “higher” for crime prevention, with police services and traffic enforcement “similar” compared to the national benchmark for 2022.

NATIONAL COMMUNITY SURVEY

DESIRED OUTCOMES #2

Receive improving National Community Survey responses “Higher” than the national benchmark for resident ratings when asked if they feel safe in the City.

OBSERVED OUTCOMES

Overall safety is “higher” than national benchmark. Other responses for FY 2022 were “similar” to the national benchmark for the other categories.

DESIRED OUTCOMES #3

Maintain an average response time of three minutes or less for calls for service. Response time is measured from the time the call is received by a regional dispatcher to arrival at the scene.

OBSERVED OUTCOMES

Police response time target of three minutes or less has been met from FY 2011— FY 2018.

AVERAGE POLICE RESPONSE TIME (MINUTES)

DESIRED OUTCOMES #4

Clear Part I crimes at a rate well in excess of the national average. (Part I crimes are major crimes such as murder, rape, robbery, aggravated assault, burglary, larceny and auto theft).

OBSERVED OUTCOMES

Williamsburg’s Police Department achieved clearance rates for Part I crimes averaged 68% higher than the national rate for 2008 thru 2015.*

CLEARANCE RATE FOR PART 1 CRIMES

*(Calendar-year based FBI crime clearance statistics for 2015 are the latest available).

LAW ENFORCEMENT OPERATIONS

EXPENDITURES

POLICE DEPARTMENT COST CENTERS

PERFORMANCE MEASURES

PARKING GARAGE EXPENDITURES

PERFORMANCE MEASURES

LARRY SNYDER

Fire Chief

COST CENTERS MISSION

To ensure a prompt, safe and timely response to emergencies of an all-hazards nature. To diligently enforce all life safety measures to ensure a safe and livable community for residents and visitors.

EXPENDITURES & STAFFING

FIRE SUPPRESSION

FIRE PREVENTION & EDUCATION EMERGENCY MANAGEMENT/ DISASTER PREPAREDNESS

EMERGENCY MEDICAL SERVICES

Note: Emergency Management staffing provided by Fire Department included above.

DESIRED OUTCOMES #1

Receive improving National Community Survey ratings for all services provided by the Fire Department “higher” than the national benchmark.

OBSERVED OUTCOMES

Residents rated “similar” to the national benchmarks in all survey categories.

DESIRED OUTCOMES #2

Maintain an average fire response time of five minutes or less, from the time calls are received to arrival of first apparatus on the scene.

DESIRED OUTCOMES #3

Maintain an average Emergency Medical (EMS) response time of five minutes or less, from the time calls are received to arrival of first apparatus on the scene.

OBSERVED OUTCOMES OBSERVED OUTCOMES

Average response time for all fire incidents has been under the five minute target since FY11. In FY 2022, moving to temporary facilities and an increase in demand contributed to an increase in the average response time.

Average response time for all EMS incidents has consistently been just over the five minute or less target for the past 10 years. In FY 2022, moving to temporary facilities and an increase in demand contributed to an increase in the average response time.

EXPENDITURES

STAFFING

PERFORMANCE MEASURES

DAN CLAYTON*

Public Works & Utilities Director

COST CENTERS MISSION

To provide a safe and efficient transportation system, including effective signage, beautiful landscaping of City-owned properties, and maintenance of Cedar Grove

EXPENDITURES & STAFFING

DESIRED OUTCOMES #1

Receive improving National Community Survey ratings for Street services provided “Higher” than the national benchmark.

OBSERVED OUTCOMES

Street repair and street cleaning were rated “higher” than national benchmark with all other categories rated “similar” to the national benchmark for 2022.

DESIRED OUTCOMES #2

OBSERVED OUTCOMES

Target set-out rate for recycling material is 65%. Recycling information is available to residents in a variety of ways, including the City’s website, the Williamsburg Farmers Market during summer months, and the Neighborhood Council of Williamsburg.

DESIRED OUTCOMES #3

To meet the state goal of recycling 25% of the City’s solid waste stream each year.

OBSERVED OUTCOMES

Since 2013 the City has exceeded the State’s 25% goal. For 2022 the recycling rate was 54%.

NATIONAL COMMUNITY SURVEY

DESIRED OUTCOMES #4

Receive improving National Community Survey ratings for essential services provided by the Public Works department “Higher” than the national benchmark.

OBSERVED OUTCOMES

Garbage collection and recycling are contracted services. All survey responses were “similar” to the national benchmark for 2022.

EXPENDITURES

PERFORMANCE MEASURES

STREETS, ENGINEERING, STORMWATER OPERATIONS

EXPENDITURES

STAFFING

PERFORMANCE MEASURES

REFUSE COLLECTION

PERFORMANCE MEASURES

BUILDINGS & FACILITIES MAINTENANCE

PERFORMANCE MEASURES

LANDSCAPING STAFFING

EXPENDITURES

PERFORMANCE MEASURES

CEMETERY

EXPENDITURES

STAFFING

PERFORMANCE MEASURES

ROBBI HUTTON Parks & Recreation Director

COST CENTERS MISSION

To provide quality recreational facilities, parks and programs that are safe, diverse, affordable and enriching to the community through our commitment to public service.

EXPENDITURES & STAFFING

NATIONAL COMMUNITY SURVEY

DESIRED OUTCOMES #1

Receive improving National Community Survey ratings for Recreation services and facilities “Higher” than the national benchmark.

OBSERVED OUTCOMES

All survey responses were “similar” to the national benchmark for 2022.

DESIRED OUTCOMES #2

Increase the number of City residents using the Recreation Center, visiting parks, and participating in recreation programs or activities.

OBSERVED OUTCOMES

Fitness opportunities responses were rated “similar“ to the national benchmark for 2022.

PERFORMANCE MEASURES

EXPENDITURES

PERFORMANCE MEASURES

EXPENDITURES

PERFORMANCE MEASURES

TEVYA GRIFFIN, AICP Planning & Codes Compliance Director

Guide the physical development of the City as recommended by the Comprehensive Plan, and protect the health, safety and welfare of residents and businesses through the enforcement of land development ordinances and building and property maintenance codes.

CODES COMPLIANCE

EXPENDITURES & STAFFING

COST CENTERS MISSION PLANNING & CODES

All categories are “similar” to the national benchmark.

48% of City land is subject to review by the Architectural Review Board. ARB reviewed 107 cases in FY22, approving 97%.

60% of the City is subject to Chesapeake Bay protection regulations. 487 inspections were performed in FY22 to ensure compliance with Erosion & Sediment regulations.

DESIRED OUTCOMES #4

Protect the character and quality of the City’s residential neighborhoods through proactive enforcement of the property maintenance code and Rental Inspection Program.

OBSERVED OUTCOMES

In FY 2022, there were 1,433 property maintenance code inspections, and 205 rental inspections performed. 100% of property maintenance and rental inspection cases were brought into voluntary compliance.

Rental Inspections

Property Maintenance Inspections

PLANNING EXPENDITURES

PERFORMANCE MEASURES

CODES COMPLIANCE

PERFORMANCE MEASURES

WENDY EVANS Human Services Director

COST CENTERS MISSION

To respond to the physical, emotional, and general human service needs of children, adults, and families in crisis, and to provide stabilization for program participants.

DESIRED OUTCOMES #1

Process expedited food stamps (SNAP) within seven days.

OBSERVED OUTCOMES

Over the past 10 years, 96.1% of expedited food stamp applications have been processed in seven days.

PERCENT OF EXPEDITED SNAP APPLICATIONS PROCESSED IN SEVEN DAYS

HUMAN SERVICES COST CENTERS

EXPENDITURES

STAFFING

PERFORMANCE MEASURES

Note: Numbers are not unduplicated and may reflect multiple interactions with a single client.

DAN CLAYTON* Public Works & Utilities Director

COST CENTERS MISSION

To provide a safe, efficient, and costeffective waterworks and sewage conveyance system throughout the City.

*Administration includes Newport News water agreement charges and debt service costs.

DESIRED OUTCOMES #1

Receive improving National Community Survey ratings for water and sewer services “higher” than the national benchmark.

OBSERVED OUTCOMES

77% of the 2022 survey responses rated the City’s drinking water “good” or “excellent,” with both drinking water and sewer services “similar” to the national benchmark.

DESIRED OUTCOMES #2

Continue water conservation measures to target water consumption under 3.4 million gallons per day.

OBSERVED OUTCOMES

Water consumption remains below 3.4 million gallons per day.

AVERAGE WATER CONSUMPTION PER DAY IN MILLIONS OF GALLONS

3.5 Gal Target <3.4 Million

3.0 Gal

2.5 Gal

2.0 Gal

DESIRED OUTCOMES #3

To provide water with a quality that exceeds minimum regulatory standards (i.e. as perfect as possible) and to operate water plant in an exemplary manner within the provisions of the Virginia Optimization Program (VOP) of the Virginia Department of Health.

OBSERVED OUTCOMES

VOP establishes state-wide optimization and a mechanism for monitoring and tracking goal attainment. The program’s criteria is currently focused on enhanced particulate removal at surface water treatment plants with gravity flow and granular media filters.

DESIRED OUTCOMES #4

Minimize

OBSERVED OUTCOMES

Preventive maintenance at key locations around the city have decreased the number of backups since FY 2013. Average annual reduction since FY 2013 is 28.0%.

ADMINISTRATION

EXPENDITURES

STAFFING

PERFORMANCE MEASURES

WATER TREATMENT

EXPENDITURES

PERFORMANCE MEASURES

WATER & SEWER SYSTEMS

PERFORMANCE MEASURES

PLAN & DEBT ANALYSIS

INTRODUCTION

The City of Williamsburg has formalized a Five-Year Plan for the General Fund to provide a framework for forecasting the City’s financial outlook over the next five years. In conjunction with the fiveyear Capital Improvement Plan, this forecast will enable the City to establish and track progress toward City Council’s strategic Goals, Initiatives, and Objectives (GIOs). This multi-year planning process will allow new or large initiatives, as identified in the GIOs, to be planned, funded, and phased in overtime.

This forecast is based on historical data, trends, and assumptions derived from various sources. As with all forecasts, many unpredictable economic factors affect the projection of revenue and expenditures, particularly inflation, employment factors and rising interest rates. The assumptions within this forecast are based on the most recent information available. As expected, projections may lose some of their validity as the forecast moves further into the future.

FORECAST — REVENUE

FORECAST — EXPENDITURES

FORECAST - SURPLUS (DEFICIT)

REVENUE GROWTH ASSUMPTION

REVENUE ASSUMPTIONS

KEY REVENUE ASSUMPTIONS DETAILS

PROPERTY TAXES

REAL ESTATE

Real estate tax revenue accounts for approximately 35% to 40% of General Fund revenues, making it a significant budget driver for the City. Real estate assessments typically grow between 3% and 5% annually in stable economic times. Assessments are affected by many factors, including the type of property, the property’s condition, and location, and how these factors affect sales prices. For certain commercial-type properties, income and expenses factor into the property’s assessed value.

For the five-year forecast, current economic conditions are volatile, so predictions for the future are highly uncertain. Assessments for FY24, not including new construction, are 14.3% higher than FY23, and 16.7% higher including new construction. The City’s Real Estate Assessor states that in a stable real estate market, a typical annual assessment increase usually ranges from 4% to 5%. Therefore, the conservative end of that range, or 4%, was used to forecast real estate assessment increases for FY25 through FY28.

PERSONAL PROPERTY TAX

Personal Property tax is a tax on the value of mainly vehicle assessments. With current economic conditions, including supply chain issues, the value of used vehicles has increased, impacting personal property taxes. The Commissioner of the Revenue projects that vehicle assessments will grow each year. However, personal property revenue collections are also dependent on collection rates and the number of delinquencies each year, which can be more volatile, so a conservative growth rate has been used for FY25 through FY28.

CONSUMER-DRIVEN TAXES

BUSINESS LICENSES

Business and Professional License taxes dropped by 24% in FY24 compared to prepandemic FY19. FY22 rebounded to prepandemic levels, slightly surpassing FY19 revenues. Budgeting for these licenses is challenging as current fiscal year revenue arrives late in the budget process. FY23 exceeded expectations with a 12% increase over FY22. Consequently, the FY24 Budget is slightly lower than actual revenue. Forecasting for FY25 to FY28 assumes a slow, steady growth rate of 2% to 3%.

HOTEL AND MOTEL — GENERAL & TOURISM FUNDS

The hotel tax is affected by room nights and changes in rates to promote occupancy. In FY20, it dropped by 30% due to COVID-19. FY21 saw a 46% decrease compared to pre-pandemic levels. FY22 had higher occupancy and revenue, surpassing prepandemic levels by nearly 5%. FY23 and FY24 revenues are projected to be 12% and 14% higher, respectively, than pre-pandemic levels. To account for volatility and economic uncertainty, a conservative 2% growth rate is assumed for the next five years.

RESTAURANT AND FOOD (MEALS)

While restaurant and food tax revenue experienced a 20% decline during the pandemic years of FY20 and FY21, revenue for this tax increased in FY22 to be 7.5% higher than FY19’s pre-pandemic revenue. Recent FY23 revenue forecasts anticipate meal taxes to be about 17% higher than pre-pandemic revenue. FY24 is budgeted to be slightly higher than the projected FY23 revenue. Due to the volatility of this revenue, a 2% growth rate was used to forecast FY25 through FY28.

EXPENDITURE GROWTH ASSUMPTION

EXPENDITURE ASSUMPTIONS

GRANTS, OUTSIDE AGENCIES

KEY EXPENDITURE ASSUMPTIONS DETAILS

The general expenditure growth rates in the five-year forecast assume that City programs and services will continue mostly unchanged over the next five years without significant additional initiatives. City operations are primarily driven by personnel costs. The City has initiated a recruitment and retention strategy that will affect personnel and benefit costs. The baseline forecast assumes the City workforce is largely unchanged in the

FORECAST FUND BALANCE

next five years and that implementation of the recruitment and retention strategy will increase costs for salaries and benefits at a rate exceeding previous historical trends, meeting or exceeding the rate of inflation.

The impact of inflation has caused an increase in materials and services and, most noticeably, in the contribution to other regional agencies and Capital Improvement Plan costs.

CONCLUSION

After conservative estimates and taking into consideration potential economic impacts related to inflationary growth, the City of Williamsburg projects a modest decrease to unassigned fund balance for the next few years. Based on this forecast, the unassigned fund balance will be over the baseline fund balance policy for the forecasted years. As noted, several assumptions were made in

this five-year projection, and changes to those assumptions will change the final actual results. This forecast assumes that the economy will significantly recover from the COVID-19 pandemic by FY 2023, and actual results and direction from City Council will be incorporated throughout future budget processes to ensure that future budgets best meet the needs of the public.

OVERVIEW

The Virginia Constitution authorizes cities and counties in Virginia to issue general obligation bonds secured by a pledge of their full faith and credit. For the payment of such bonds, the city’s governing body is required to levy an ad valorem tax on all property subject to local taxation to ensure debt service payment. The issuance of general obligation bonds is subject to a limit of 10 % of the assessed value of taxable real property in the city. The Public Finance Act of Virginia also authorizes a city in Virginia to issue limited liability revenue bonds provided that the rates, rents, fees, or other charges are sufficient to pay the cost of operation and administration and the principal and interest on the bonds when due.

DEBT ANALYSIS

OUTSTANDING DEBT — ALL FUNDS

The City has the following outstanding general obligation bond at the end of FY 2023:

All interest paid semi-annually; principal annually 20 years, 2.736% pay-off July 2037

10 year callable bond, fixed interest for first four years at 3.1% with option to renegotiate for the remaining term, interest paid semi-annually with principal and accrued interest due at maturity, pay off November 2032

YEARLY PRINCIPAL AND INTEREST OF CURRENT OUTSTANDING DEBT FOR ALL FUNDS

Below is the future fiscal year principal and interest on the current outstanding debt of the City.

OVERLAPPING DEBT

The City of Williamsburg is autonomous and independent of any county or other political subdivision and is not subject to taxation by any county or school district, nor is it liable for any county or school division indebtedness. Currently, there is no overlapping debt.

BOND RATINGS

Bond or credit ratings are independent opinions of an issuer’s general creditworthiness based on relevant risk factors. Long-term general obligation ratings are based on an issuer’s ability and willingness to fully repay the principal and interest of its debt obligations on a timely basis. Municipal credit ratings are primarily based on four main factors: the issuer’s financial position, the issuer’s current and future debt burden, financial management, and the economy. Often an investor places significant emphasis on a bond’s credit rating to help evaluate a price or willingness to hold the investment. Each major credit rating agency in the U.S. applies its own methodology in measuring creditworthiness and uses a specific rating scale to communicate its ratings opinions. Typically, ratings are expressed as letter grades that range from ‘AAA’ to ‘D’ to communicate the agency’s opinion of the relative level of credit risk. Credits are further distinguished with “notches” within each rating category.

The City Credit has strong investment quality ratings for the CITY’S

as follows:

LEGAL DEBT MARGIN

State statute imposes on cities a legal debt margin for general government debt, a limit of 10% of the assessed value of real property. For 2023, the City’s assessed value of real property was $2.493 billion; the debt outstanding, including amortization of premium, is $40.9 million resulting in a legal debt margin of $208.4 million.

DEBT POLICIES

In addition to the legal debt margin, the City has established financial policies that direct any financial decisions on debt issuance in addition to the legal debt margin. These conservative financial policies demonstrate its commitment to sound financial practices and contribute to maintaining the City’s high credit ratings, lower borrowing costs for capital projects, and promoting long-term fiscal sustainability.

*10-year payout includes the payout for refinancing the 2022 bond in FY 2027.

FUTURE DEBT

The City proposes to refinance the $24.5 million of the October 2022 bond and borrow $30.15 million of new money by issuing bonds of $27.4 million in FY 2024, $10.6 million in FY 2026, $10.4 million in FY 2027, and $6.3 million in FY 2028 to fund various projects, including the Police, Library, and School buildings. This graph illustrates that the estimated debt service for planned future issuances is below the City’s debt service policy limits for future years.

ESTIMATED DEBT SERVICE BY FISCAL YEAR* WITH CITY DEBT SERVICE POLICY LIMITS

ESTIMATED YEARLY PRINCIPAL AND INTEREST OF CURRENT OUTSTANDING AND PLANNED DEBT FOR ALL FUNDS

Below is the estimated fiscal year debt service payments for current outstanding and planned new debt to be issued in FY 2026 and FY 2027 for All Funds.

FY 2024 BUDGET SUMMARIES

INTRODUCTION

The Budget Summaries section provides an overview of all budgeted funds for the upcoming year. These include the General Fund, the Capital Improvement Plan Fund, the Tourism Development Fund, the Utility Fund, which also includes capital improvements; the Public Assistance Fund; and the Quarterpath Community Development Authority Fund.

AN EXPLANATION OF EACH FUND CAN BE FOUND ON PAGE I-51

Revenues and expenditures/expenses are categorized by type, in accordance with recommended standard formats of the Government Finance Officers Association, enabling consistency and comparability between all forms of local government.

BUDGET SUMMARY ALL FUNDS

BUDGET SUMMARY ALL FUNDS – BY FUND

*Includes Utility Fund Capital Projects

**Quarterpath CDA is a fiduciary fund for collection and remittance of special assessments each year.

Transfers are not netted on this presentation for transparency. Reconciliation to All Funds Statement:

BUDGET SUMMARY GENERAL FUND

REVENUES

6.4% MISCELLANEOUS

0.9% CHARGES FOR SERVICES

1.9% USE OF MONEY & PROPERTY

0.5% FINES

0.2% LICENSES & PERMITS

EXPENDITURES

35.9% OTHER LOCAL TAXES

6.5% INTERGOVERNMENTAL

47.7% GENERAL PROPERTY TAXES

18.9% GENERAL GOV’T ADMINISTRATION

1.4% JUDICIAL ADMINISTRATION

1.3% TRANSFER TO CAPITAL IMPROVEMENT FUND

4.7% TRANSFER TO TOURISM FUND

2.6% COMMUNITY DEVELOPMENT

5.6% PARKS, REC. & CULTURAL

22.3% EDUCATION

5.3% HEALTH & WELFARE

29.6% PUBLIC SAFETY

8.3% PUBLIC WORKS

GENERAL FUND REVENUES & EXPENDITURES

REVENUE & EXPENDITURE HIGHLIGHTS GENERAL FUND

REVENUES HIGHLIGHTS

GENERAL PROPERTY TAXES

All real estate, public service, personal, and business property taxes, including penalties and interest. On average, real estate property reassessments are expected to increase by approximately 14.4%. The average increase in single-family residential reassessments is anticipated to be 12.0%, and the average commercial values are anticipated to increase 3.4%. Multi-family residential is expected to increase by 57.3% (excluding new construction.) The adopted real estate tax rate is $.62/$100.

OTHER LOCAL TAXES

This category consists of consumer utility taxes, communication sales taxes, business and franchise, bank stock, recordation, cigarette, room, and meal taxes. Utility taxes are based on residential and commercial usage. Other local tax receipts are estimated to increase by 10.4% for FY24. This is primarily due to the anticipated recovery of meals and lodging tax revenues due to the easing of COVID-19 restrictions. Specifically, the adopted FY24 Budget adjusts for the increased revenue, with the FY24 Business, Professional & Occupational License anticipated to be approximately 13.6% higher than FY23 adopted budget.

LICENSES & PERMITS

Licenses and permits consist of citywide on-street parking, building, electrical, plumbing, mechanical, sign, and various inspection fees. This category of revenues fluctuates based on various development projects occurring in the City during a particular fiscal year. Receipts were $275K in FY22 because of a few major private developments obtaining permits. It is expected to be $148K for FY23, with totals for FY24 budgeted at $112K, based on anticipated projects in the City.

FINES

Court fines, parking citations, and code violations make up this revenue classification. Court fines are collected by the Clerk of Circuit Court and remitted to the City monthly. Receipts generated revenues of $198K and $201K for FY21 and FY22. FY23 revenues are expected to be $220K, and FY24 is budgeted at $210K.

USE OF MONEY & PROPERTY

Income from rentals of city-owned buildings, such as the Transportation Center, Stryker Center, Community Building, and parking fees from the Prince George Parking Garage are included here. Revenues totaled $571K in FY21; however, COVID-19 restrictions impacted the rental of public facilities and the use of the parking garage. Revenue for FY22 was $774K and is expected to be $742K for FY23 due to decreases in rent revenue for the Triangle Building and Transportation Center and revenue from the parking garage. The FY24 adopted budget is set at $862K, reflecting an increase of $51K for interest to be earned $81K increase in rent for the Triangle Building.

CHARGES FOR SERVICES

Charges for services represent fees for various activities within the City, such as all recreation fees and program revenues, cemetery lots, and grave openings. Revenues for FY21 and FY22 were $376K and $3917K, respectively. FY23 revenues are expected to be $398K and increase to $432K in FY23 as additional classes and activities are added.

MISCELLANEOUS

This category comprises various sources, such as payments in lieu of taxes, Arts Commission reimbursement from James City County and the State, overhead charges from the Utility Fund, EMS Recovery Fees, and an emergency services agreement with William & Mary. The estimated FY 23 revenue is $2.49M, and the adopted FY 24 is $2.97M. The overall increase in FY 24 includes an increase in Payment in lieu of taxes of $15K, a $50K increase in EMS fees, and a nonrecurring $250K increase for fiscal agent fees for issuing bonds.

INTERGOVERNMENTAL

These funds include state reimbursements for constitutional officers’ expenses, sales taxes designated for education (before FY22), 599 law enforcement funds, VDOT street maintenance payments, and various other taxes returned to the City. VDOT street maintenance payments, law enforcement 599 funding, and funding from the State Compensation Board for the Commission of Revenue, Treasurer, and Registrar are anticipated to remain relatively level for FY23. FY22 was lower than FY21 actual revenue due to Coronavirus Relief Funds received in FY21. Also, beginning in FY22, Sales Tax for Education went directly from the state to the schools. In previous years, this passed through the City. A slight increase of $157K was adopted in FY24 as the State budget had not been passed in May 2023.

EXPENSE HIGHLIGHTS

GENERAL GOVERNMENT ADMINISTRATION

This category includes City Council, Clerk of Council/ Communications, City Manager, Human Resources, City Attorney, Commissioner of the Revenue, City Assessor, Treasurer, Finance, Vehicle Repair Shop, Electoral Board, Voter Registrar, and Information Technology. Expenditures are estimated to increase by 25.5% or $1.79M compared to the FY23 budget. Some of the significant factors for the increase:

• Increase in the contingency for HUD Allocation of $250K.

• Changes in pay and benefits, $281K, for citywide salary increases and new benefit enhancements, $359K.

• New City Attorney position, a net impact of $78K, converting an IT position to full-time, $45K, and an intern program for Finance, $10K.

• Increase of $15K for the Health & Wellness Program.

• Contractual services and maintenance increases, including lobbyist $60K, software maintenance 60K, city audit $8K, increases to insurance $16K, and credit card fees $10K.

• FY24 proposal increase includes $18K for estimated insurance increases.

• Increase in the contingency of $67K to cover unforeseen increases due to inflation.

JUDICIAL ADMINISTRATION

Judicial functions are performed by the Circuit Court, General District Court, Juvenile and Domestic Relations Court, Clerk of the Circuit Court, Commonwealth Attorney, 9th District Court Service Unit, and Magistrate. Judicial functions have been performed in the jointly operated WilliamsburgJames City County Courthouse since FY01. An expanded explanation is included in the “Notes on Funding Relationships” section of the budget guide. Costs are shared with James City County on a population basis each year. Funding of $670,000 is anticipated for FY24.

PUBLIC SAFETY

Departments included in this classification are Police, Parking Garage, consolidated E-911 Dispatch, Fire, Group Home Commission, Colonial Commission Corrections, Animal Control, City’s share of the cost for participation in Virginia Peninsula Regional Jail Authority, and Codes Compliance. Public Safety costs increased for FY24 by $621K or 4.7%, compared to the FY23 adopted budget. The increase is due to changes in pay and benefits of $241K. Increases to the police budget include $27K for cell phone service for all officers and $24K for vehicle fuel and maintenance increases. For Fire, the FY24 proposed budget includes a $55K increase for vehicles and contractual services and a $58K increase for the estimated operation and maintenance of the new station. In addition, there is a $31K increase for E-911 services paid to York County in FY24 and a $150K increase for the regional jail.

PUBLIC WORKS

The City Shop, Engineering, Streets, Stormwater Operations, Refuse Collection, Building, and Facility Maintenance, Landscaping, and Cemetery comprise the operating budget’s Public Works section. Overall, costs for FY24 increased by $79K, which is 2.1% higher than FY23. Increases in electricity costs for streetlight costs of $15K and an increase to the solid waste contract of $100K are in the adopted budget. These are offset by an overall reduction in pay and benefits caused by increased personnel turnover.

HEALTH & WELFARE

This category consists of the City’s contribution to the local Health Department, Colonial Behavioral Health (CBH), Olde Towne Medical and Dental Center, and the Public Assistance Fund and Public Assistance Transportation subsidy. Peninsula Health Center, Olde Towne Medical and Dental Center, and CBH provide health services for the community. City contributions for the adopted FY24 budget increased by $330K, a 15.6% increase compared to FY22. The contribution to CBH increased by $12K, to the Peninsula Health District increased by $33K, and to Olde Towne Medical increased by $3K. The City’s budgeted subsidy of $1.9M to the Public Assistance Fund increased by $282K over the FY23 budget.

EDUCATION

The City and James City County jointly fund the Williamsburg-James City County Public Schools. FY24 is the second year of the FY23-FY28 School contract. The City’s contribution of school operating costs for FY24 is anticipated to be $10.3M based on the joint contract with James City County, which is a $691K, or 7.1%, increase from FY23. In FY23, the schools received their portion of state sales tax directly from the State versus a pass-through from the City. Capital costs are budgeted in the Capital Improvement Fund Plan for the City’s portion of school projects next year.

PARKS, RECREATION & CULTURE

Recreation administration, playgrounds, parks, library, and grants provided to organizations upon recommendation of the Williamsburg Area Arts Commission are included in this category. The City’s contribution to the Williamsburg Regional Library, operated jointly with James City County, is proposed at $1,011,574, a $94K increase compared to FY23. Arts Commission contributions are funded at $159,000 for FY24. James City County reimburses the City for half the program costs as a funding partner. Overall, this category of expenditure increased $96K or 3.9% in FY24 compared to the FY23 budget. Parks and Recreation had a decrease in salaries and benefits of $40K due to turnover and health care selections and a $43K increase in operating costs attributable to increases in electricity costs, $6K, agricultural and building supplies, $29K, and increases to service contracts, 8K.

COMMUNITY DEVELOPMENT

This includes the Planning Department and contributions to various human service, community and economic development agencies within the City. This category’s budget for FY24 increased by $107K, or 9.5%, primarily due to increases in pay and benefits.

BUDGET SUMMARY SHARED SERVICES

The City’s Goal “Prioritizing Safety and Wellness” aims to provide targeted services that proactively support, improve, and sustain individual health and community safety. One of the objectives to achieve this goal is to review the plan for shared mission funding for these services. The chart below represents the shared services programs and costs. It is important to note that in FY24 the actual costs are budgeted in the individual department’s budget.

BUDGET SUMMARY MAJOR FUNDING CATEGORIES

This table summaries the funding history and adopted FY 2024 budget for the City’s eight major funding categories. Debt Service is included in the Capital Improvement Plan budget.

60.5% CITY DEPARTMENTS

SECTION I - CITY DEPARTMENTS

SECTION II - CONSTITUTIONAL OFFICERS

SECTION III - JUDICIAL ADMINISTRATION

SECTION IV - HEALTH

SECTION V - SCHOOLS

SECTION VI - LIBRARY

SECTION VII - DEBT SERVICE

SECTION VIII - TRANSFER TO OTHER AGENCIES & OTHER FUNDS

GENERAL FUND - SUMMARY

MAJOR PROGRAMS

CONTRIBUTIONS TO OUTSIDE AGENCIES

*Eligible to apply for funding through the Tourism Fund grant process.

BUDGET SUMMARY TOURISM FUND

BUDGET SUMMARY UTILITY FUND

REVENUES

25.3% SEWER SERVICE

1.9% INTEREST EARNINGS

0.9% WATER & SEWER AVAILABILITY

EXPENDITURES

17.7% CAPITAL PROJECTS

26.1% OTHER SOURCES

45.8% WATER SERVICE

25.1% ADMINISTRATION

1.0% SUPPLEMENTAL WATER

1.0% DEBT SERVICE

32.6% SEWAGE SYSTEM

6.4% WATER SYSTEM

16.2% WATER TREATMENT

REVENUE & EXPENSE HIGHLIGHTS UTILITY FUND

REVENUES HIGHLIGHTS

WATER SERVICE

The Public Utilities department operates a water distribution system throughout the City. Commercial customers are billed monthly. Residential accounts are split into three sections of the City, each billed quarterly during alternate months to provide constant cash flow for this Enterprise Fund. An analysis of the water rates is included in the appendix. Rates increased several years in the past but have remained steady for the past five years. FY23 Water Service revenue was budgeted at $4.M; with level consumption rates and new development, water service revenues are expected to be $4.9M in FY24.

SEWER SERVICE

Sewer lines are maintained by the City, with 15 pump stations collecting and transmitting sewage to the Hampton Roads Sanitation District for treatment. Sewer charges are billed together with water, and both are based on consumption. Sewer charges are collected and paid to HRSD on a contractual basis. HRSD sets the sewer rate for sewer treatment annually for all jurisdictions in the region. These rates have steadily increased to cover environmental regulations. Revenues from sewer service were budgeted at $2.5M. Consumption is expected to continue to increase gradually in FY24 and is budgeted at $2.7M.

OTHER SOURCES

These revenues consist of penalties, water and sewer connection fees, water tank antenna contracts, and other miscellaneous items. The amount of revenue provided by these sources is difficult to estimate from year to year. Revenue anticipated from other sources remains relatively level at $332K.

INTEREST EARNINGS

Interest earnings in this fund, like any city fund, are a product of idle resources invested under the City’s stringent investment policy and current interest rates. The City invests in the state’s Local Government Investment Pool (LGIP) and Insured Cash Sweep Accounts (ICS) at local banks. In FY23 interest rates have increased and with this increase and anticipated cash resources interest earnings are anticipated to be close to $200K for FY24.

WATER & SEWER AVAILABILITY

Availability fees are charges for a home or business to have access to existing water and sewer lines. As discussed previously, water and sewer connection charges are additional charges based on the cost of constructing connections to a home or business. Availability fees increase as development takes place and, therefore, can vary each year. Increases in building activity are proportional to availability fee revenue. The budget estimate for FY 2024 is $100,000.

GRANTS

In FY24, the City will receive federal and state grants for the Waller Mill Dam project in the Capital Improvement Plan for $2.5M.

EXPENSE HIGHLIGHTS

ADMINISTRATION

Administration expenses account for 25% of the total utility fund. Three full-time people make up the administrative staff of the utility department. Depreciation expenses are expected to be level for the next fiscal year based on last year’s actual amounts. Overhead is reimbursed to the General Fund for all administrative functions performed by the City Manager’s Office, Engineering, the Shop, Information Technology, and the Finance Department (for billing, collections, and accounting) on a set percentage basis. Depreciation (a non-cash expense) of the City’s intangible water rights purchased from Newport News in 2009 is based on an estimated 25-year period.

WATER TREATMENT

The City owns and operates its water treatment plant located at the Waller Mill Reservoir in adjacent York County. The plant produces an average of 3.3 million gallons of water daily and provides safe drinking water to over 4,300 accounts. In FY24, expenses for the water treatment plant are estimated to increase by about 14.6% compared to FY23 due to increases in chemical costs, electricity, and Supervisory Control and Data Acquisition professional services. Capital expenses required by the water treatment plant are provided for in the Utility Fund Capital Improvement Plan.

WATER SYSTEM

Water system personnel are responsible for managing the water distribution system, consisting of 60 miles of lines and four water tanks throughout the City. Expenses for FY24 are expected to increase by 11K or 1.7% from the last fiscal year, mainly due to changes in salaries and benefits.

SEWAGE SYSTEM

The sewer system includes approximately 50 miles of sewer collection and transmission lines and 15 pump stations within the City. The sewer system collects and pumps raw sewage to the Hampton Roads Sanitation District (HRSD) for treatment on a contractual basis. Overall, expenses for FY 2024 are expected to increase by $272K. Because this expense represents payment to HRSD for revenues collected on its behalf, there is no impact on the Utility Fund’s operating income.

DEBT SERVICE

The remaining debt from the 1997 borrowing for Filter Plant renovations was repaid two years early in 2010 to save interest costs. The City borrowed $10M in a bank-qualified loan and refinanced this debt in October 2010 to take advantage of historically low long-term interest rates. Part of the refunded 2010 debt was refinanced again in FY18 to take advantage of lower interest rates. The remaining 2010 debt will be paid in full by the end of FY27. The City maintained its strong bond ratings from Standard & Poor’s (AAA) and Moody’s (Aa1) as part of this refinancing. Principal payments on bonds are treated as fund liabilities and not budgeted as expenses in this fund but are included in the water rate analysis each year.

SUPPLEMENTAL WATER

The City pays for supplemental water if and when the reservoir’s water levels are low, especially during drought conditions. Water charges, if needed and pumped to the City, are based on usage. No water has been purchased since 2003. The FY24 budget includes $100,000, which is level with funding in the FY23 budget, in the event the City would need to purchase water.

DEBT

BUDGET SUMMARY PUBLIC ASSISTANCE FUND

FIDUCIARY FUND QUARTERPATH COMMUNITY DEVELOPMENT AUTHORITY FUND

The Quarterpath Community Development Authority (QCDA) was created in July 2006 to assist in financing public improvements for the property within the geographic boundaries of the Quarterpath Community Development Authority District. The property is located in the City at the intersection of U.S. Routes 60 and 199 about 2 miles west of Rte. 199 interchange with Interstate 64. The District consists of approximately 222 acres proposed to be developed as a mixed-use project. The improvements include the design, planning, coordination, and construction related to the following:

• Battery Boulevard (East-West Access);

• Commonwealth Avenue;

• Sidewalks, bike trails, and public amenities;

• Water and sewer utilities; and

• Wastewater management

The improvements are all provided to meet the needs of the property in the District that result from the proposed development of the property, providing necessary road enhancements, public amenities, and water, sewer, and stormwater management facilities that did not previously exist. The QCDA issued $15M in Special Assessment Revenue Bonds in November 2011 to finance the acquisition, construction, and equipping of the project. The bond proceeds cover all expenses for constructing improvements, issuance costs, bank fees, and capitalized interest.

A Special Assessment Agreement between the City, Riverside Healthcare Association, Inc., and

the QCDA was signed in November 2011. This agreement describes the levy and collection of special assessments on real property within the CDA District to pay the debt service on the $15 million bonds. Special assessments are allocated to parcels within the District on a basis that reasonably reflects the benefit each parcel receives from the public improvements. The Board of the QCDA requests the City to collect annual installments of the special assessments within the CDA District in an amount to be determined in accordance with the rate and method sufficient to pay the CDA obligations payable in the applicable assessment year.

The Special Assessment Agreement provides that an amount equal to the annual installment be included in the City’s budget for each fiscal year any Bonds are outstanding. The QCDA Fund will account for the special assessment activity each year. FY24 is the 10th year special assessments will be collected by the City for the QCDA.

BUDGET SCHEDULE REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE

GOVERNMENTAL FUNDS (CONTINUED)

UTILITY FUND WORKING CAPITAL UTILITY FUND

CHANGES IN FUND BALANCE/WORKING CAPITAL

Fiscal Years 2013-2024 (Millions)

In FY19, the City separated the General Fund and the Capital Improvement Plan Fund. The chart above shows them combined for comparability. Below are the fund balances for each fund:

* Assumes all CIP projects are completed. Of the $14,890,585 fund balance, $3,084,924 is invested in land held for resale and the remaining is available for programming into the five-year Capital Improvement Plan for FY 2024.

TRENDS REVENUES & EXPENDITURES

A trend analysis of the City’s governmental funds operations shows how cycles of saving and spending have balanced over time to maintain adequate cash reserves:

FY 2013 - A new medic unit for the Fire Department was purchased for $218K. School projects and street resurfacing totaled $916K. General Fund’s operating surplus was $1.3M. The total Fund Balance of the General Fund was $30.6M, with the unassigned fund balance at $11.4M. The assigned Fund Balance was $18M, including $4.2M of prior year carryover for capital projects. Unassigned and Assigned Fund Balance, not including carryover funds, was $25.2M, with the reserve ratio remaining at 77%.

FY 2014 - Underground wiring on Page Street was completed for $1.0M. Sidewalk construction projects totaled $473K. The City borrowed $5M for the construction of Stryker Center, with remaining funds of $4.82M included in restricted fund balance at year-end, for completion of the project scheduled December 2015. Total unassigned fund balance was $11.7 million with $19.3 assigned for future capital projects.

FY 2015 - Stryker Center construction costs of $3M, street resurfacing costing $339K, and two motel properties on Capitol Landing Road were purchased for $1.45M. York Street sidewalk and roadway improvements from Page Street to Quarterpath Road were made at the cost of $750K. Stryker Center construction costs were $3 million, street resurfacing costed $339 thousand and two motel properties on Capitol Landing Road were purchased for $1.45 million.

FY 2016 - Stryker Center construction completed, totaling $3M in FY 2016. York Street roadway and sidewalks constructed for $747K. Annual street resurfacing costs were $2M, including Richmond

Road, aided by VDOT grant funds. The unassigned fund balance was $12.4M, with $18.8M assigned for future capital projects.

FY 2017 - The City issued $13M in bonds for Fire and Police Station renovations. Annual street resurfacing costs were $1M, and underground wiring totaled $757.3K. The ERP System replacement totaled $273.6K. The unassigned fund balance was $12.6M, with $15.5M assigned for future capital projects.

FY 2018 - Effective July 1, 2018, the General Assembly added section 58.1-603 to the Virginia Code (Code), increasing the sales tax in the Historic Triangle (City of Williamsburg, James City County, and York County) by 1% and creating the Historic Triangle Marketing Fund to be managed and administered by the Tourism Council of the Greater Williamsburg Chamber and Tourism Alliance. The Historic Triangle Marketing Fund’s sole purposes are marketing, advertising, and promoting the Historic Triangle area as an overnight tourism destination.

One-half of the revenue from the increased sales tax and the $2/night room tax will fund the Historic Triangle Marketing Fund, while the other half will remain with the locality, imposing the tax. The City of Williamsburg has dedicated its share of these taxes to local tourism by establishing a Tourism Fund.

FY 2019 - The Ironbound Road Project Phase 1 was substantially completed during FY19. This phase included the relocation of Longhill Road and the redesign of the Longhill Road interchange and was coordinated with the opening of the new James Blair Middle School. $2,227,800 for this project was expended during FY19.

Underground wiring was completed on Second Street at the cost of $1,068,657.

Design work started on the Monticello Avenue Multiuse Trail project. This 4,200-foot-long lighted facility running from the William & Mary School of Education to Ironbound Road.

Prince George Parking Garage was updated with new parking software and garage hardware and tracking system, allowing gateless entry and exit. $165,780 was expended in FY19, and $97,200 carried forward to FY20 for additional improvements.

A total of $7,913,834 was expended on capital projects during FY19, including $1,797,680 for the City’s share of school capital improvements.

As of June 30, 2019, the Capital Improvement Fund Plan had a fund balance of $29.7M, with $13.5M restricted in bond funds (new fire station and police station renovations) and $13.2M assigned for future capital projects.

FY 2020 - FY20 General Fund revenues outperformed FY19 in all categories of revenue through February of 2020. In mid-March, COVID-19 restrictions required limited commercial activity. By year-end, total operating revenue in the General Fund was about $1.5M less compared to operating revenue for FY 2019. The City’s tourism-based revenues were hit the hardest, with the decreases in Meals Tax of $1.4M, Lodging Tax of $1.0M, and Business, Professional and Occupational Licenses of $156K. These decreases were offset by increases (compared to FY 2019) in Real Estate taxes of $652K, Building Permits of $182K, and Personal Property Taxes of $182K.

The Capital Improvement Fund had a reduction in Sales Tax revenue of $390K compared to FY19. During FY20, the Monticello Avenue Redesign Project was substantially completed, with $2.5M expended in the current year and $1.7M carried forward to FY21 to complete the project and pay outstanding bills. This project redesigns Monticello Avenue to include three lanes, a two-way cycle track, a new traffic signal, and wide sidewalks with amenities such as bike racks and benches, for a total cost of $4.2M. The Monticello Avenue Multiuse Trail project was also completed. This project features a 4,200-foot-long lighted trail that

runs from the entrance to William & Mary School of Education to Ironbound Road. $800K was expended in FY 2020, with $641K carried forward to FY21 for final invoices, for a total project cost of $1.6M. The demolition of a derelict hotel was also completed at the cost of $465K. School Capital Improvement Projects total $865K.

A total of $7M was expended on capital projects during FY20, and as of June 30, 2020, the Capital Improvement Fund had a fund balance of $26.6M. $13.7M of fund balance is restricted in bond funds for a new fire station, and $12.9M is assigned for future projects.

FY 2021 - Overall FY21 General Fund revenues were $4.9M higher than FY2020 due to the recognition of Coronavirus Aid, Relief, and Economic Security (CARES) funding of $2.6M and a $1.5M transfer to the General Fund from the Tourism Fund. The COVID-19 pandemic continued to impact the City’s revenue during FY21. The City’s revenues that decreased from FY21 included a decrease in lodging tax of $535K, Business, Professional and Occupational Licenses of $469K, building permits of $197K and EMS Recovery fees of $171K. These decreases were offset by increases (compared to FY 2020) in real estate taxes of $408K, and personal property taxes of $126K.

The Capital Improvement Plan Fund had a reduction in Sales Tax revenue of $390K compared to FY20. During FY21, the Monticello Avenue Redesign Project incurred $1.1M in costs. Repaving costs during FY 2021 were $691K, including $280K to resurface historic streets. The Monticello Avenue Multi-use Trail project expended $593K during FY21. Public safety projects totaled $795K and included equipment and professional services costs to assist in determining options for a new fire station.

A total of $4M was expended on capital projects during FY21, and as of June 30, 2021, the Capital Improvement Fund had a fund balance of $26.8M. In the fund balance, $13.3M is restricted in bond funds for a new Fire Station, and $13.5M is assigned for future projects.

FY 2022 - Revenues in FY22 experienced a healthy increase as the City continued its economic recovery from the COVID-19 pandemic. Total General Fund revenues increased by $2.6M compared to FY21, with property taxes increasing by $1.6M or 10.3% with a tax rate increase of 4 cents per $100 value attributing to a portion of the increase. Personal property tax increased by $167K or 5.2% over FY21. Other local taxes, including meal and lodging tax, increased by 42.3% or $4.6M higher than FY22. By comparison, in FY21, there was one-time revenue of $2.6M for the recognition of CARES funding and a $1.5M transfer to the General Fund from the Tourism Fund.

The Capital Improvement Fund had an increase

GOVERNMENT FUNDS:

in Sales Tax revenue of 8.7% or $386K compared to FY21. During FY22, work for the Fire Station was under construction and $2.9M was spent; the new Police station spent $716K. The Capitol Landing Road Redesign Project incurred $277K in costs. Repaving costs during FY 2021 were $877K. Public safety projects totaled $795K and included equipment and professional services costs to assist in determining options for a new fire station. A total of $6.8M was expended on capital projects during FY22 and as of June 30, 2022, the Capital Improvement Fund had a fund balance of $35.1M. In the fund balance, $3.4M is nonspendable land, $11.0M is restricted in bond funds for a new fire station, and $20.7M is assigned for future projects.

Note: Governmental Funds include General, Capital Improvement Plan Fund, and Special Revenue Funds

Source: City of Williamsburg Annual Comprehensive Financial Reports

BUDGET DETAILS GENERAL FUND REVENUES

BUDGET DETAILS GENERAL FUND EXPENDITURES

OUTSIDE AGENCIES CONTINUED

BUDGET DETAILS TOURISM FUND - REVENUES & EXPENDITURES

REVENUES

EXPENDITURES

BUDGET DETAILS UTILITY FUND - REVENUES & EXPENDITURES

REVENUES

EXPENSES

BUDGET DETAILS STAFFING LEVELS

*Full-time equivalents (FTEs), including Constitutional Officers, Registrar

IMPROVEMENT PLAN

INTRODUCTION

The capital improvements projects of the City of Williamsburg are administered through two funds: the CAPITAL IMPROVEMENT PLAN FUNDS (CIP) (formerly known as the Sales Tax Fund) for general improvements and the UTILITY FUND for water and sewer projects. The City plans capital projects for five years, with the current year’s projects funded by City Council and the remaining four years shown for planning purposes only. At year-end, the funding for any uncompleted project is encumbered as necessary and presumed to be finished in the next fiscal year.

Revenues of the CIP Fund are derived from the 1% Sales Tax that is collected and distributed monthly by the state. All taxable purchases in the Hampton Roads area of Virginia are charged at the rate of 6%, 1% percent of which is returned to localities by law. It has been the policy of the City Council for over 25 years to use this revenue to fund general capital projects in the City. Examples of projects completed with the use of these funds are schools, municipal buildings, land acquisitions, roads, vehicles, and equipment.

Interest earnings of the General Fund are accounted for in the CIP Fund. In the past, operating budgets experienced drastic swings in these revenues caused by extreme changes in interest rates, tending to skew operating budgets. This approach helps stabilize operations for comparison each year. The City’s annual paving program is included as a capital expenditure in this fund because of its capital nature and to minimize the skewing effect on operations over time.

Revenues of the Utility Fund are used to fund capital improvements, as well as operating costs, for the water and sewer systems.

Capital project detail sheets include a reference to one or more of the related City Council goal areas, derived from the City’s Vision Statement, that the project supports.

GENERAL GOVERNMENT CAPITAL IMPROVEMENT PLAN PROGRAM SUMMARY FY 2024-2028

CAPITAL REVENUES

CAPITAL EXPENDITURES

GENERAL GOVERNMENT CAPITAL IMPROVEMENT - FY 2024 PROJECTS AND DEBT SERVICE

GENERAL

GOVERNMENT

CAPITAL IMPROVEMENT

PLAN PROGRAM DETAILS FY 2024-2028

CAPITAL REVENUES

FIVE-YEAR CAPITAL IMPROVEMENT PROGRAM

CAPITAL REVENUES (CONTINUED)

FIVE-YEAR CAPITAL IMPROVEMENT PROGRAM

CAPITAL EXPENDITURES

FIVE-YEAR CAPITAL IMPROVEMENT PROGRAM

CAPITAL EXPENDITURES (CONTINUED)

CAPITAL EXPENDITURES (CONTINUED)

FIVE-YEAR CAPITAL IMPROVEMENT PROGRAM

CAPITAL EXPENDITURES (CONTINUED)

FIVE-YEAR CAPITAL IMPROVEMENT PROGRAM

CAPITAL EXPENDITURES (CONTINUED)

FIVE-YEAR CAPITAL IMPROVEMENT PROGRAM

CAPITAL EXPENDITURES (CONTINUED)

FUND BALANCES - CITY PROJECTS ONLY

FIVE-YEAR CAPITAL IMPROVEMENT PROGRAM

SCHOOL FIVE-YEAR CAPITAL IMPROVEMENT PLAN AND FUND BALANCES WITH SCHOOL PROJECTS

FIVE-YEAR CAPITAL IMPROVEMENT PROGRAM

SCHOOL CAPITAL IMPROVEMENT PLAN CONTRIBUTION

This project represents the City’s contribution to various capital expenditures for the WilliamsburgJames City County Public Schools. These estimates are based on the school system’s CIP. The City’s share of these expenses is estimated at 10% of the FY 2024 total as stipulated in the current funding agreement between James City County and the City. Remaining funds for any projects not completed at fiscal year-end are carried forward to the following year.

FIVE-YEAR CAPITAL IMPROVEMENT PROGRAM

REPAVING PROGRAM

The City budgets in the CIP for repaving of those urban secondary roads as needed. Streets are selected based on an annual street survey conducted by the department. Approximately $525,000 is budgeted in FY 2024 with increases annually for inflation so all streets are repaved on a rotating basis every 10 to 20 years dependent on traffic volumes and general condition. In FY23, VDOT performed a digital analysis of pavement conditions for all roadways within the City as a baseline. The results will be used with manual review and analysis in subsequent years.

FISCAL IMPACT SUMMARY:

The completion of the work will not have a direct fiscal impact beyond the cost of completion. Repaving reduces long-term fiscal impacts as preventative maintenance reduces more considerable reactive maintenance expenses.

HISTORIC STREET PAVING

In 2018, Colonial Williamsburg requested a modification of the Historic Area Streets agreement whereby the City would again maintain all the pavements within the Historic Area starting in July 2019. It had been many years since the pavements were last resurfaced, and wear from weather and heavy use combined with various repairs have culminated in a surface that does not fit with the surrounding area and atmosphere that visitors have come to expect. All streets in the Historic Area were resurfaced by 2022.

This is a multi-year project focusing on infrastructure repairs and refurbishments in the oldest section of the City. Improvements will be incorporated to best blend with the historic nature of Colonial Williamsburg but will also focus on long-term durability, accessibility, and affordability.

There is no direct fiscal impact beyond the initial capital outlay. Resurfacing reduces long-term fiscal impacts because preventative maintenance reduces larger reactive maintenance and repair expenses.

CAPITOL LANDING ROAD & BYPASS ROAD INTERSECTION

Capitol Landing Road is being reconstructed as part of an effort to encourage redevelopment along this gateway corridor. The project includes two anchor intersections. The Capitol Landing and Bypass roads intersection is the southern terminus of the redevelopment project. The redesign includes a standard, signalized, 90-degree “T” intersection. The configuration allows for an eventual fourth leg to act as an entry point into the Colonial Williamsburg Visitor Center property.

The City was awarded Smart Scale funds from the Virginia Department of Transportation, which provided 100% of the required funding for this project in FY22-23, a total of $2,144,760. Funds are allocated in FY24 to address cost increases due to post-COVID pandemic supply-chain issues and inflation.

FISCAL IMPACT SUMMARY:

The ongoing fiscal impact from this project is solely due to the operation of a new traffic signal once constructed. Despite adding pavement and additional lanes, increased maintenance will be de minimis. The potential for additional revenue exists if a new development pad results post-construction.

MONTICELLO AVE - RICHMOND RDLAFAYETTE ST ROUNDABOUT

In the third round of Smart Scale funding conducted in 2018, City Council endorsed and requested Public Works to apply for funds to convert the existing signalized intersection of Richmond Road/Lafayette Street/Monticello Avenue into a one or two lane roundabout. This project was originally envisioned in a study of the Monticello Avenue corridor prior to the development of Midtown Row and is to serve as the eastern anchor to the corridor. During the application, safety analysis was conducted and the roundabout shows a marked decrease in injuries and property damage over the current signalized intersection while also providing improved throughput for traffic flow. Funding was granted by the Commonwealth Transportation Board in 2019 in the Six-Year Improvement Plan (SYIP). The $6,381,090 is 100% federal Smart Scale funds from the Virginia Department of Transportation with no local match required.

FISCAL IMPACT SUMMARY:

The fiscal impact from this project will be

nominal. Despite adding pavement, sidewalks, and streetlights, there is a small annual savings from removing the traffic signal. The traveling public will receive savings as idle time is reduced with a roundabout versus a traffic signal.

TRAFFIC SIGNALS

The City is planning the replacement of the Second Street and Page Street signals in FY24 at a cost of $350,000 and the Scotland Street and Richmond Road signals in FY27 at a cost of $450,000 as part of a 30 to 40 year life cycle based on use and general condition.

The City also applied for and was awarded Smart Scale funding in FY24 and FY25 for pedestrian improvements and Signal Optimization for two corridors: Richmond Road ($203,500) and Lafayette Street ($91,000). These projects, paid for with 100% federal dollars, will install or upgrade pedestrian signals on a limited basis and provide for synchronization of the traffic signals for improved progression during peak and off-peak hours.

There is no direct fiscal impact beyond the initial capital outlay since no new signals are proposed. Improvements in traffic operations result in reduced travel time delays and energy savings for the users of the transportation network.

BRIDGE INSPECTION AND MAINTENANCE YEAR

This project includes federally required biennial inspections in even numbered fiscal years ($20,000 with 10% increases each biennium) for five bridges and one large box culvert. They are located along Page Street, Capitol Landing Road, Merrimac Trail, Bypass Road, Quarterpath Road, and South Henry Street. In addition to the biennial inspections, replacement of the Page Street bridge bearings are scheduled for FY25 at a cost of $400,000.

FISCAL IMPACT SUMMARY:

The completion of the work will not have a direct fiscal impact beyond the cost of completion due to improved reliability and reduced maintenance costs.

PRINCE GEORGE ST OUTDOOR DINING CONVERSION

The proposed project will convert the successful temporary outdoor dining program to a permanent solution that provides necessary flexibility for restaurants and improves the aesthetics and function of the outdoor dining areas on Prince George Street.

FISCAL IMPACT SUMMARY:

Costs for infrastructure will eventually be offset by rental income for exclusive spaces and increased meals tax revenues from the use of the outdoor spaces for dining customers.

GOLF CART COMMUNITY

One of City Council’s initiatives for 2023-2024 is to conduct a community conversation about transforming Williamsburg into a safe and sustainable golf cart community, and to draft program guidelines and necessary ordinances for City Council’s consideration.

FY24 funds are for initial infrastructure at the Municipal Building to accommodate the City’s golf carts, including chargers, dedicated parking spaces, and weather protection and for further cost and implementation studies. In future years funding is included for additional signage and striping necessary to implement a future ordinance for the golf cart community. Revenues and license fees are included to offset these costs.

FISCAL IMPACT SUMMARY:

The initial number of golf cart registrations is estimated to be 25 and is assumed to increase by five registrations each fiscal year. The proposed license fee is $30/year.

PUBLIC WORKS INFRASTRUCTURE MASTER PLAN

The City’s street infrastructure includes pavements, curb and gutter, sidewalks, curb ramps, traffic signals, signs, and bridges. This infrastructure continues to age and, due to the complexity, requires a long-term plan to provide a course of action. This project is to provide funds for a consultant to evaluate the existing public works infrastructure and determine conceptual scopes of work and costs for necessary repair, rehabilitation and/or replacement in a logical and systematic manner. The project will also generate inputs for the Federal highway Administration (FHWA) - Model Inventory of Roadway Elements (MIRE) database initiative, which will be incorporated into the City’s GIS system.

A master plan will aid in programming capital improvements over the next 10 to 15 years to provide the best benefit for dollars expended as well as aid in applying for state and federal grant funds.

FISCAL IMPACT SUMMARY:

Undetermined at this point in the process.

HIGHLAND PARK CDBG

Based upon the 2023/2024 Goals, Initiatives & Outcomes, Community Development Block Grant (CDBG) funding will be sought for improvements in the Highland Park community. Originally created while in York County, Highland Park was annexed into the City in 1964. While improvements have been made over the years such as sewers, street paving, drainage improvements and a community park, a comprehensive infrastructure evaluation has not. FY24 funds are anticipated through a CDBG planning grant to evaluate the level of improvements, engage the community, and fine-tune the costs. This will lead to a comprehensive application for CDBG Community Improvement Grants (CIG) to fund improvements to the infrastructure, including curbs and gutters, storm sewers, water and sewer system enhancements, sidewalks and lighting.

FISCAL IMPACT SUMMARY:

The fiscal impact from this project will be nominal. Despite added infrastructure such as drainage pipes, sidewalks, and streetlights, there is a small annual savings in operations from having newer or rehabilitated infrastructure.

CAPITOL LANDING ROAD REDESIGN

Using the “complete streets” design standard, Capitol Landing Road between Merrimac Trail and Bypass Road will be redesigned to include accommodations for vehicles, mass transit, bicycles, and pedestrians. The original project includes paving, restriping to reduce lanes, bike lanes, sidewalks, streetlights, and underground wiring with a total budget of $6,360,000 - $1,988,874 is from excess funds from previous Virginia Department of Transportation federal-aid projects and up to $1,340,793 is the state-aid portion from the VDOT Revenue Sharing program. To pay for water main upgrades, $300,000 was transferred from the utility fund in FY22. The remaining $3,030,333 is budgeted from carryover monies to cover the required grant matches and because the City is responsible for 100% of the cost of underground wiring. The project is currently under contract for the design phase with construction anticipated to commence in FY23-FY24. Due to supply chain and inflationary increases, the project cost has increased to $9,356,000. Construction is being split into parts to pay for the improvements, the water main, and the pavement and striping. The 2024 State of Good Repair paving funds will be used for the pavement and striping, and Utility Fund transfers will pay for the water main.

FISCAL IMPACT

The fiscal impact from this project will be positive. Despite adding wider sidewalks and additional features, increased maintenance will be minimal. The additional revenue created by new business development and expansion of existing businesses will be strong.

IRONBOUND ROAD IMPROVEMENTS (PHASES II & III)

Ironbound Road Improvements is divided into three phases. Phase I included the redesign of the Longhill Road intersection and the relocation of Longhill Road. This phase was completed in FY19.

Phases II and III of the Ironbound Road project will be completed concurrently due to available funding. The combined project includes the redesign and widening from Middle Street to DePue Drive. The planned improvement includes a roadway with three lanes, pedestrian/bicycle improvements, streetlights, underground wiring, and creating dual left turn lanes at the Richmond Road intersection. The project also includes coordination of the traffic signals at Richmond Road, Longhill Road, and Treyburn Drive. This project will be completely funded through the VDOT federal-aid Smart Scale program for a total cost of $5,235,100 in FY24-FY26.

FISCAL IMPACT

The fiscal impact from these projects will be negligible. Despite adding pavement and additional lanes, increased maintenance and revenue will be minimal.

LAFAYETTE STREET RECONSTRUCTION

This project will widen the roadway from south of Wythe Avenue to north of Bacon Avenue to provide wider travel lanes (from 9 ft to 11 ft) and meet standards for a minor arterial; maintain on-street parking on the east side of street; widen the sidewalk on the west side; add a shared-use path on the east side to connect to the Municipal Building; install underground wiring; and install new streetlights. The Arts District sidewalk project from prior year CIPs is combined with this project for a total budget of $6,145,000 through FY26. The City was awarded $4,329,000 in Virginia Department of Transportation federal-aid Smart Scale funding beginning in FY24. The remaining funds ($1,816,000) will be from local funds to pay for underground wiring and utility betterments. Costs in FY24 and FY25 are to begin design and utility relocations in anticipation of construction in FY26.

FISCAL IMPACT SUMMARY:

The fiscal impact from this project will be negligible. Despite adding pavement, sidewalks, and streetlights, increased maintenance and revenue will be minimal.

LANTERN ART GATEWAY FEATURES

The proposed project will work with the Williamsburg Public Art Council to complete plans for the installation of lantern art pieces to designate gateway entrances to the City. Initial entrances will be at Richmond Road (Route 60 West) and Monticello Avenue at Ironbound Road.

FISCAL IMPACT SUMMARY:

A maintenance cost of the lantern art is nominal for electricity for uplighting. This is offset by replacing the existing gateway signage.

COLLEGE WOODS CIRCUIT SHARED-USE TRAIL

2019 (Title & Scope Change in 2021)

The Planning Commission has encouraged the construction of a 1.5 mile± multi-use path connecting John Tyler Lane and the Strawberry Plains residential area. The City’s 2023-2024 Goals, Initiatives, and Outcomes call for the consideration of a shared-use facility along Strawberry Plains Road, John Tyler Lane, Jamestown Road, and Richmond Road that would form a loop with the recently completed Monticello Avenue Multiuse Trail. In FY22, a study was performed to aid in developing a funding application through the Virginia Department of Transportation’s Transportation Alternatives (TA) Set-Aside program to fund Phase 2 of this loop from Berkeley Middle School on Ironbound Road to Berkeley Lane at John Tyler Lane. TA Set-Aside funding provides 80% in federal matching dollars. The current estimated cost for this section is $2,277,200 with an anticipated start date in 2023 and construction completion in 2027. The City was awarded $585,926 in federal TA Set-Aside funds in 2022 and anticipates applying for the remaining funding in Spring 2024. Costs previously allocated in FY23 ($317,650 FY23 + $5,918 FY22) are to begin design, property acquisitions/agreements and utility relocations in anticipation of construction in FY25 and FY26.

FISCAL IMPACT SUMMARY:

Beyond the capital costs of the construction, this project’s long-term fiscal impact is minimal other than routine pavement maintenance.

NEWPORT AVENUE SIDEWALK YEAR

This project will install a sidewalk along one side of Newport Avenue between Griffin Avenue and South Boundary Street. The sidewalk will not only provide for a neighborhood-requested pedestrian improvement but will also provide a deterrent to cut through vehicular traffic by narrowing the street and slowing speeds. For FY24 $100,000 is programmed to saw cut the existing pavement; install new curbs, gutters, and entrances; and construct the new sidewalk.

FISCAL IMPACT SUMMARY:

The fiscal impact from this project will be negligible. Despite adding sidewalks, increased maintenance and revenue will be offset by the decrease in the existing pavement width.

SIDEWALK TO THE OAKS

The Oaks sidewalk extension runs about 2,200 feet, from College Landing Park along South Henry Street to the entrance to The Oaks subdivision. The sidewalk will provide pedestrian access from The Oaks subdivision into the downtown area of the City. In FY23 $50,000 was included to determine routing and design documents.

FISCAL IMPACT SUMMARY:

The fiscal impact from this project will be negligible. Despite adding sidewalks, increased maintenance and revenue will be minimal.

AFRICAN AMERICAN HERITAGE TRAIL

The proposed project is an approximately 2.3-mile-long marked pathway to connect various sites of historic and cultural importance to the African American community within the City of Williamsburg. The African American community dates to the City’s establishment in 1699. Two of the oldest sites on the trail are the 1760 Williamsburg Bray School and the 1776 First Baptist Church, but more modern sites, such as the Blayton Building and the memorial to Reverend Dr. Martin Luther King Jr., are also included to tell a more complete story of the City’s history. The total cost of the project is estimated at $1,413,900.

Phase 1 cost of $450,600 includes Segment A, which starts at a trailhead across from the Municipal Building at Lafayette Street and Virginia Avenue. A 10 foot-wide asphalt trail then runs cross-country through ‘Harris Bottom’ to eventually emerge adjacent to First Baptist Church and the Blayton Building at the intersection of Scotland Street and Prince George Street. The phase also includes conversion of the unused Pump Station #1 building at the trailhead into a unisex comfort station, or public restroom. $327,000 is being funded through HUD Community Development Funding (Congressional Earmarks).

FISCAL IMPACT SUMMARY:

The trail will expand the City’s heritage tourism offerings and attract more visitors and residents of diverse cultural backgrounds and interests. This increases foot traffic to downtown with immediate and long-term gains of more customers downtown, which

and room tax revenue.

BIRTHPLACE OF AMERICA TRAIL

This project will seek connections to the future Birthplace of America Trail within the City to include the remaining phases of the College Woods Circuit, as well as find ways to use the Carter’s Grove Country Road as the multiuse trail’s exit toward Fort Monroe. The City will work with the Hampton Roads Transportation Planning Organization for additional sources of funding for the remaining segments as well as explore the various options and routes for connecting to the existing bicycle and pedestrian network through the downtown area.

Funding of $50,000 is included in FY24 to study additional routes and gain additional stakeholder input to aid with funding applications.

IMPACT SUMMARY:

No long-term fiscal impact will be realized by the study, but the results could increase travel and tourism in the downtown area and require expanded infrastructure.

STORMWATER MANAGEMENT PLAN UPDATE

The City’s first Stormwater Management Plan was created in 1996. This was later updated in 2014 as part of the reissued Municipal Separate Storm Sewer System permit to provide more recent information and resolve issues with the stormwater system that had not been addressed in the first edition. This plan is intended to be updated periodically and is used to guide improvements to the drainage system to replace aging infrastructure, repair erosion, and enhance water quality. An updated plan will aid in programming of capital improvements over the next 15 to 20 years to provide the best benefit for dollars expended as well as aid in applying for state and federal grant funds.

FISCAL IMPACT SUMMARY:

No direct operating impacts will be felt with this project; however, the projects generated from the plan would provide greater efficiency.

WALNUT HILLS OUTFALL STREAM RESTORATION

The City worked with our local congressional representative and was awarded federal Community Project Funding in the federal appropriations bill in late 2021. This funding provides 80% federal dollars to 20% local matching funds and is administered through the U.S. Environmental Protection Agency for stream bank stabilization and restoration of an existing channel in the Berkeley Hills and Walnut Hills subdivisions adjacent to Walnut Hills Baptist Church. The existing channel will be restored using guidance for water quality improvements for nutrient and sediment reduction and included in the City’s Chesapeake Bay TMDL Action Plan. The total estimated cost is $658,000, of which $422,600 was budgeted in FY23.

FISCAL IMPACT SUMMARY:

Beyond the costs of construction, this project will not have a fiscal impact. The additional maintenance costs will likely be negligible.

ROUTE 143 EMBANKMENT & OUTFALL EROSION REPAIR

The roadway embankment at the corporate limit with York County on Merrimac Trail is eroding from a storm drainage inlet outfall. The project will extend and repair the storm sewer and discharge it lower on the slope to the existing stream channel while dissipating the energy. The embankment will then be regraded to a uniform slope and permanently stabilized with vegetative cover.

The City intends to apply in Summer 2023 for a grant from the Virginia Department of Transportation state-aid Revenue Sharing funds for FY27. The total cost of $350,000 is a 50% State, 50% City distribution. Design would begin in late spring 2026 with construction in late summer 2026.

FISCAL IMPACT SUMMARY:

Beyond the costs of construction, this project will not have a fiscal impact. The additional maintenance costs will likely be negligible.

SMART CITY INFRASTRUCTURE DEPLOYMENT

The proposed project will deploy Smart City infrastructure to enable better data collection and policy development in service areas such as parking, downtown trash collection, visitation, air quality, lighting, road conditions, and code enforcement. Examples include trash collection that notifies the City when the trash or recycling bin is full, smart fire hydrants that are equipped with sensors to convey pressure in the water system, air quality sensors, and radar-based traffic signal detection/counters for vehicles, pedestrians, and bicycles.

FISCAL IMPACT SUMMARY:

Smart City infrastructure will increase operating costs for trash collection, etc., but those costs will be offset by increased efficiency of use.

DOWNTOWN FOUNTAIN FEATURE

The proposed project will work with the Williamsburg Public Art Council to pursue a downtown fountain feature to serve as an anchor for a children’s park. Costs in FY24 are anticipated for conceptual design and site selection, while potential final design and construction costs are included in FY25.

FISCAL IMPACT SUMMARY:

A fountain will increase operating costs for maintenance and water supply, but those costs will be offset by increased tourism and downtown vibrancy.

CEDAR GROVE CEMETERY EXPANSION

Based upon a request first proposed in the 2021/2022 Goals, Initiatives & Outcomes, a feasibility study was accomplished to determine the number of spaces available and a projection was made to expand Cedar Grove Cemetery to meet 92 years of demand. A white paper was produced in January 2022 that indicatess that the existing Cemetery capacity will be reached in 2045. To reach the target year of 2112, an additional 4,728 burials are projected to occur, requiring an additional 6 developable acres. Two other alternates were proposed: Purchase 10 useable acres to last until 2156 (134 years) or purchase 26 useable acres to have capacity until about 2334 (312 years). FY26 funds of $150,000 are for landscape architecture to plan the proposed expansion, and FY27 funds are for initial clearing, grading, and installation of perimeter fencing.

FISCAL IMPACT SUMMARY:

The staffing costs assume an additional 20% FTE for cemetery caretaker being offset by selling plots at the rate noted in the white paper for a net impact of $13,600 revenue per year resulting in a approximate 30-year payback at 3% beginning when the property is developed.

KIWANIS PARK DUGOUT & PATHWAY IMPROVEMENTS

Convert crushed stone pathways and dugout areas to concrete to improve maintenance efforts and accessibility.

FISCAL IMPACT SUMMARY:

There will not be a fiscal impact due to these projects.

KIWANIS PARK TENNIS COURT REBUILD

Rebuild the Kiwanis Park tennis courts. The courts were constructed in 1973 and have exceeded their lifespan. Unless rebuilt, crack repairs will only last approximately six to eight months.

There will not be a fiscal impact due to this project.

KIWANIS PARK SOFTBALL FIELD FENCE GUARD

YEAR INTRODUCED:

FY 2023

RELATED CITY COUNCIL GOAL: #4 Prioritizing Safety and Wellness

RELATED INITIATIVE: Enhance Existing Park Facilities

Each Kiwanis Park softball field is equipped with a high-visibility protective poly-cap fence guard to increase visibility and to protect players from injury. The current protective fence cap is 10 years old and will need to be replaced. Field #4’s protective fence cap will not need to be replaced.

FISCAL IMPACT SUMMARY:

There will not be a fiscal impact due to this project.

KIWANIS PARK SOFTBALL SCOREBOARD REPLACEMENT

YEAR INTRODUCED:

FY 2023

RELATED CITY COUNCIL GOAL: #4 Prioritizing Safety and Wellness

RELATED INITIATIVE: Enhance Existing Park Facilities

The scoreboards at Kiwanis Park fields, with the exception of the one at field #4, are 14 years old. Replacement parts are no longer available. Therefore, the units should be replaced.

FISCAL IMPACT SUMMARY:

There will not be a fiscal impact due to this project.

KIWANIS PARK PLAYER BENCHES

YEAR INTRODUCED: FY 2023

RELATED CITY COUNCIL GOAL: #4 Prioritizing Safety and Wellness

RELATED INITIATIVE: Enhance Existing Park Facilities

The softball bleachers at Kiwanis Park have not weathered well. The plastic coating has started to crack, and the units are showing rust. Therefore, the bleachers should be replaced with ones that are ADA accessible. Additionally, the player benches are in the same condition as the bleachers and should be replaced.

FISCAL IMPACT SUMMARY:

There will not be a fiscal impact due to this project.

QUARTERPATH PARK NINJA WARRIOR COURSE

There will not be an additional fiscal impact as a result of the above project.

QUARTERPATH PARK FIELD #3 DRAINAGE IMPROVEMENTS

Install a drainage system at Quarterpath Park Softball Field #2 to redirect and redistribute run-off, which is causing the infield to erode.

FISCAL IMPACT SUMMARY:

There is no additional fiscal impact from this project.

QUARTERPATH PARK PUBLIC BATHROOMS

YEAR INTRODUCED: FY 2021

RELATED CITY COUNCIL GOAL: #4 Prioritizing Safety and Wellness

RELATED INITIATIVE: Enhance Existing Park Facilities

Install permanent outdoor bathrooms that will replace port-a-johns at Quarterpath Park in two locations. One structure will be located by the old non-operable bathroom facility, and the other will be located in between fields #1 and #2.

FISCAL IMPACT SUMMARY:

Reoccurring cost of custodial supplies and utilities.

QUARTERPATH REC CENTER CHILLED WATER SYSTEM

Replace the chilled water pipe system in the Quarterpath Recreation Center gymnasium. The chilled water system is a function of the HVAC system to air condition the gymnasium.

FISCAL IMPACT SUMMARY:

There is no additional fiscal impact from this project.

QUARTERPATH PARK SOFTBALL FIELD FENCE GUARD

YEAR INTRODUCED:

FY 2023

RELATED CITY COUNCIL GOAL:

#4 Prioritizing Safety and Wellness

RELATED INITIATIVE: Enhance Existing Park Facilities

Each Quarterpath Park softball field is equipped with a high-visibility protective poly-cap fence guard to increase visibility and to protect players from injury. The current protective fence cap is 10 years old and will need to be replaced.

FISCAL IMPACT SUMMARY:

There is no additional fiscal impact from this project.

QUARTERPATH FIELD #2 & #3 SCOREBOARDS

The scoreboard at Quarterpath Park Field #3 was installed in 1992, and the scoreboard on Field #2 was installed in 2006. Replacement parts are no longer available. The new scoreboards will be wireless units.

FISCAL IMPACT SUMMARY:

There is no additional fiscal impact from these projects.

WALLER MILL PARK SHELTER IMPROVEMENTS

YEAR INTRODUCED: FY 2021

RELATED CITY COUNCIL GOAL: #4 Prioritizing Safety and Wellness

RELATED INITIATIVE: Enhance Existing Park Facilities

shelters #2, #3, and #4 at Waller Mill Park.

There is no additional fiscal impact from this project.

WALLER MILL PARK GATE REPLACEMENT

YEAR INTRODUCED:

FY 2021

RELATED CITY COUNCIL GOAL:

#4 Prioritizing Safety and Wellness

Replace and relocate an upgraded, automated entrance gate system.

FISCAL IMPACT

There is no additional fiscal impact from this project.

WALLER MILL PARK TRAIN

YEAR INTRODUCED: FY 2023

RELATED CITY COUNCIL GOAL:

#4 Prioritizing Safety and Wellness

RELATED INITIATIVE: Enhance Existing Park Facilities

Purchase a custom electric engine trackless train and storage trailer. The train would be a pay-to-ride amenity for the City. This purchase would require converting rock/dirt roadway into a paved roadway for use at Waller Mill Park. Depending on the wagon style, it can hold up to 24 people and offers an ADA accessible caboose.

FISCAL IMPACT SUMMARY:

General maintenance of amenity and staffing costs.

WALLER MILL PARK PEDAL BOAT REPLACEMENT

Replace six pedal boats that are used as a rental amenity of Waller Mill Park.

FISCAL IMPACT

There will not be an additional fiscal impact as a result of this project.

WALLER MILL PARK OUTDOOR RESTROOM

INTRODUCED: FY 2021

CITY COUNCIL GOAL:

port-a-johns with a permanent bathroom facility to accommodate shelter patrons and visitors of Waller Mill Park. This project includes the demolition of the old non-operable bathroom facility.

FISCAL IMPACT SUMMARY:

Reoccurring cost of custodial supplies and utilities.

Re-establish

WALLER MILL PARK MOUNTAIN BIKE TRAIL

FISCAL IMPACT

There will not be an additional fiscal impact as a result of this project.

the mountain bike trail at Waller Mill Park.

WALLER MILL PARK JON BOAT REPLACEMENT

YEAR INTRODUCED:

FY 2021

RELATED CITY COUNCIL GOAL:

#4 Prioritizing Safety and Wellness

RELATED INITIATIVE: Enhance Existing Park Facilities

The fleet of jon boats at Waller Mill Park is over 40 years old and has exceeded its life expectancy. The fleet is currently down to 10 boats from 15. This request will replace the existing boats and bring the fleet back to 15.

FISCAL IMPACT SUMMARY:

Reoccurring cost of custodial supplies and utilities.

WALES PLAYGROUND & FENCE

YEAR INTRODUCED:

FY 2022

RELATED CITY COUNCIL GOAL:

#4 Prioritizing Safety and Wellness

RELATED INITIATIVE: Park

Replace the playground and fence at Wales subdivision.

FISCAL IMPACT SUMMARY:

There will not be an additional fiscal impact as a result of this project.

COLLEGE LANDING ADA BOAT LAUNCH

YEAR INTRODUCED: FY 2022

RELATED CITY COUNCIL GOAL:

#4 Prioritizing Safety and Wellness

RELATED INITIATIVE: Park ADA Access Efforts

Replace the stationary canoe/kayak launch with a functionable ADA-compliant launch with an accessible pathway.

FISCAL IMPACT SUMMARY:

Reoccurring cost of custodial supplies and utilities.

COLLEGE LANDING WORKSTATIONS

Enhance College Landing Park by adding solar-powered workstations, and picnic tables.

FISCAL IMPACT

There will not be an additional fiscal impact as a result of this project.

STRAWBERRY PLAINS PLAYGROUND

YEAR INTRODUCED: FY 2022

RELATED CITY COUNCIL GOAL: #4 Prioritizing Safety and Wellness

RELATED INITIATIVE: Enhance Existing Park Facilities

Replace aging playground and amenities, installed in 2007, at Strawberry Plains Park with innovative play structures and provide an ADA-compliant accessible route.

FISCAL IMPACT SUMMARY:

There is no additional fiscal impact for this project.

REDOUBT PARK PARKING LOT

YEAR INTRODUCED:

FY 2023

RELATED CITY COUNCIL GOAL: #4 Prioritizing Safety and Wellness

Convert grass parking into paved parking at Redoubt Park and restripe existing parking spaces.

FISCAL IMPACT

SUMMARY:

There will not be an additional fiscal impact as a result of this project.

E-911 REGIONAL CENTER EXPANSION

YEAR INTRODUCED: FY 2017

RELATED CITY COUNCIL GOAL: #5 Engaging with our Partners

The City Council approved consolidation of the public safety answering point (PSAP) with York County in February 2009. The consolidation required an expansion of the PSAP in York County. The City supported costs of that renovation equal to annual debt service of $45,000 in each fiscal year of CIP. At the time, the estimated City savings due to the consolidation equaled approximately $200,000 annually.

FISCAL IMPACT SUMMARY:

The completion of the work will not have a direct fiscal impact beyond the cost of completion due to improved reliability and efficiency of any new improvements, including equipment.

FIRE TRAINING TOWER YEAR INTRODUCED: FY 2022

RELATED CITY COUNCIL GOAL: #4 Prioritizing Safety and Wellness

The Fire Department currently does not have a local facility capable of conducting live fire training. A fire tower training prop would serve to benefit fire personnel in a multifaceted approach. Live fire training increases the operational competency and readiness of personnel. The ability to conduct NFPA 1403-compliant fire training evolutions improves safety and reduces the chance of firefighter injury or death. A local option will have a positive impact on employee retention and morale and increase the number and types of training offered. It will also allow for training with the City’s automatic aid partners in surrounding counties and may even afford the opportunity to offer a local new recruit training academy allowing for quicker and customizable training to get new recruits released to duty. A burn training facility offers personnel the opportunity to fight “live” fire under supervision and for direct application to real-world, life-threating events. There is potential for cost participation with James City County and York County.

FISCAL IMPACT SUMMARY:

Operating costs will be incurred and this project has been pushed to FY25 as research into operating costs continues.

CARDIAC MONITORING AND DEFIBRILLATOR REPLACEMENT

The fire department’s current inventory of cardiac monitors and defibrillators are aging, nearing their life expectancy. In anticipation of emerging technology in the next few years, coupled with the life expectancy of the current units, a plan to replace these units is a priority. Cardiac monitors and defibrillators are critical to the adequate Advanced Life Support service delivery to our community.

FISCAL IMPACT SUMMARY:

While the fiscal impact for this project is difficult to measure, the planning of the project will help reduce unnecessary costs related to maintain the current inventory. Additionally, once the next generation monitors are released, it is anticipated that a trade-in program may be available to offset the cost of the project.

CELL ON WHEELS

YEAR INTRODUCED:

FY 2022

RELATED CITY COUNCIL GOAL: #4 Prioritizing Safety and Wellness

Funds would provide an Cell on Wheels device that boosts cell phone signal for on-site City of Williamsburg personnel doing large-scale events. Boosting service benefits communication clarity and speed of overall data and mission critical information. This device is mobile in nature and is applicable to a wide range of events from emergency to large tourism events.

FISCAL IMPACT SUMMARY:

The fiscal impact from this project will be nominal.

AID TO LOCALITIES FIREFIGHTING EQUIPMENT

YEAR INTRODUCED: FY 2017

RELATED CITY COUNCIL GOAL: #4 Prioritizing Safety and Wellness

This project consists of Aid to Localities funding and includes future funding estimated at $50,000 in each year for the next four years. State code mandates specific use of these funds, with annual reporting to the Virginia Department of Fire Programs. While it is difficult to forecast specific fire equipment needs, some examples of the type of equipment purchased with this funding includes personal protective equipment, hose, firefighting tools and fire suppression foam.

FISCAL IMPACT SUMMARY:

The availability of grant funds for fire equipment reduces expenditures in the Fire Department operating budget each year, as these are essential to operations.

FOUR FOR LIFE YEAR INTRODUCED: FY 2017

RELATED CITY COUNCIL GOAL: #4 Prioritizing Safety and Wellness

Use of this funding is limited to EMS training and equipment. It is reported annually to the Virginia Office of Emergency Medical Services. This funding is primarily used to support EMT-Paramedic training, Advanced Cardiac Life Support training and to replace EMS equipment and supplies used on a daily basis. The majority of FY24 funding will be utilized to enhance training opportunities for Advanced Life Support providers and equipment. The anticipated expense in each future fiscal year accommodates annual paramedic training and daily EMS supplies.

FISCAL IMPACT SUMMARY:

The availability of grant funds for EMS equipment and training reduces expenditures in the Fire Department operating budget each year, as these are essential to operations.

REPLACEMENT GENERATOR QUARTERPATH REC CENTER

The generator at Quarterpath Recreation Center is nearing its useful life expectancy. Repair and maintenance costs continue to increase and a long-term replacement plan is necessary. The $70,000 proposed in FY26 is for a 150kW natural gas generator. Grants are available to help offset the cost of the generator. Currently the plan will be to apply for two grant cycles to reduce the expense of the generator replacement with funds committed for FY26 if grant applications are unsuccessful.

FISCAL IMPACT SUMMARY:

Long-term impact will be reduced maintenance and repair. Also, switching from diesel to natural gas will make the unit more efficient in terms of maintenance, fuel supply, and planning efforts.

CASCADE SYSTEM

YEAR INTRODUCED: FY 2023

RELATED CITY COUNCIL GOAL: #4 Prioritizing Safety and Wellness

The current Self-Contained Breathing Apparatus cascade system is approximately 10 years old and is nearing its expected useful life. Industry standard is to replace cascade systems every 15 to 20 years. Cascade would be replaced with a system that meets industry standards and utilizes technology that enhances the user experience and safety.

FISCAL IMPACT SUMMARY:

The fiscal impact from this project will be nominal.

ADDITIONAL SCBA PACKS

RELATED CITY COUNCIL GOAL: #4 Prioritizing Safety and Wellness

In FY18, the City purchased 32 new air packs for the department. Included in the initial purchase were spare Self-Contained Breathing Apparatus (SCBA) packs to be used for training when recruits and instructors were assigned or assisting fire academies. Since FY18, the average number of recruits the department has been sending to fire academies has increased. With this increase, we are removing SCBA air packs from apparatus to augment the need for additional SCBA air packs. This CIP request seeks to minimize the need to remove air packs from apparatus to support training needs.

FISCAL IMPACT SUMMARY:

Increasing the inventory of SCBA air packs will increase the annual repair and maintenance operating costs. However, this initiative will help keep fire apparatus with their assigned number of air packs.

MOBILE COMMAND FOR PUBLIC SAFETY

YEAR INTRODUCED: FY 2023

RELATED CITY COUNCIL GOAL: #4 Prioritizing Safety and Wellness

While prioritizing American Rescue Plan Act funds, Fire and Police sought funding for a mobile command unit that would support incident and event operations with the flexibility for use in other City outreach efforts. As special events continue to increase, the need for the physical presence of a mobile command unit becomes more important for the management of these events and incidents and promotes the inclusion of our partners. Additionally, the mobile command serves as both a deterrent to those considering harmful behaviors and a branding tool for the City. The funding for the Cell on Wheels (COW) project can also included in the overall price of the mobile command and not considered two different projects.

FISCAL IMPACT SUMMARY:

Costs will be incurred to operate the vehicle, including routine repair and maintenance, and technology upgrades

FORMER POLICE STATION DEMOLITION

YEAR INTRODUCED: FY 2018

RELATED CITY COUNCIL GOAL: #4 Innovating a Modern City

RELATED INITIATIVE: City Square Plan

Following the construction of the new police station, the current building will require either extensive remodeling or demolition. This project has been broken out to capture the cost in the event that it is decided to demolish the existing structure.

FISCAL IMPACT SUMMARY:

There are no fiscal impacts beyond the cost of the project.

LAW ENFORCEMENT EQUIP., BODY CAMERAS & TASERS

YEAR INTRODUCED: FY 2020

RELATED CITY COUNCIL GOAL: #4 Prioritizing Safety and Wellness

The Axon OSP7+ program includes additional GPS tracking and redaction features, as well as Axon’s Records, Citizen and Performance modules. These increase the safety of the officers while ensuring the highest level of officer accountability. The administrative suite of features will increase personnel effectiveness and efficiency while ensuring FOIA compliance. This is a continuation of an FY21 project.

FISCAL IMPACT SUMMARY:

The use of non-lethal devices and body cameras may reduce legal liability for the department. The Commonwealth Attorney’s office needs additional staff to file, store, and review data recorded by the cameras. The City will incur its share of the cost to support two additional paralegals in the CA’s Office. The City’s share of the cost for FY23 will be $22,000. A 2% increase in salary cost is assumed with each successive year.

LAW ENFORCEMENT EQUIPMENT, MOBILE DATA TERMINAL YEAR INTRODUCED: FY

2021

RELATED CITY COUNCIL GOAL: #4 Prioritizing Safety and Wellness

The mobile data terminals were replaced recently. To ensure continuity of the MDT program, the MDTs are on a current recycling cycle of five years. The costs of each unit is $7,000 and includes the hardware, software and installation. Maintenance costs are $25 per month per unit, beginning after the one-year warranty expires.

FISCAL IMPACT SUMMARY:

The annual maintenance costs associated with this project are $25 per month per unit, beginning after the one-year warranty expires.

PUBLIC SAFETY EMERGENCY RADIOS

YEAR INTRODUCED: FY 2021

RELATED CITY

COUNCIL

GOAL: #4 Prioritizing Safety and Wellness

The Williamsburg Police Department’s portable radios are replaced on an equipment replacement plan as they reach the end of their useful lives.

FISCAL IMPACT SUMMARY:

All officers will have the most modern, up-to-date portable radios available to ensure their safety.

AXON FLEET 3 IN-CAR CAMERA SYSTEM

YEAR INTRODUCED:

FY 2021

RELATED CITY COUNCIL GOAL: #4 Prioritizing Safety and Wellness

The Williamsburg Police Department utilizes the Axon Fleet system in the police vehicles. This system is integrated into the Evidence Storage System for video storage and has proven to be more effective and efficient with lower cost. The Axon 3 system will provide more features that will increase safety and accountability. This system includes a fully integrated Automated License Plate Reader (ALPR) system, increasing effectiveness while reducing expense and additional complex systems. The cost increases from FY24 to FY26 are due to the increased number of patrol cars in the fleet, which require camera systems in the later years.

FISCAL IMPACT SUMMARY:

The inclusion of an ALPR in the new system will eliminate the need to purchase separate ALPR units and their associated maintenance fees, which amount to approximately $3,000/year. By comparison, to outfit each patrol car with an ALPR from our current ALPR vendor would require an initial investment of approximately $480,000 plus a maintenance fee of $36,000 per year.

FIRING RANGE REPAIRS

YEAR INTRODUCED: FY 2021

RELATED CITY COUNCIL GOAL: #4 Prioritizing Safety and Wellness

The Williamsburg Police Department’s Firing Range is in need of refurbishment in order to adequately address concerns of safety, liability, and efficiency. These concerns are due to almost 20 years of projectile build-up and the use of common, mixed-grade impact berm media (clay, dirt, gravel, and sand), which has resulted in a situation where ricochet is a higher possibility. The storage buildings at the range are also in need of replacement. This is the minimal investment required to maintain the range in a safe and orderly manner. This project only serves to maintain our current capabilities, not to expand them to meet the goals stated in the Waller Mill Training Facility Project.

FISCAL IMPACT SUMMARY:

The City is currently researching grant opportunities to assist with funding of major renovations to the Firing Range. In the meantime, funding in FY24 and FY28 will maintain the current facility at a minimum standard until additional funds can be secured. There are no additional costs for operations and no associated revenue.

FLOCK SAFETY ALPR

YEAR INTRODUCED:

FY 2022

RELATED CITY COUNCIL GOAL: #4 Prioritizing Safety and Wellness

Flock Safety Automated License Plate Reader (ALPR) system provides real-time actionable intelligence and evidence that increases case clearance rates. Williamsburg Police Department has been working with Flock Safety on a test and evaluation program, and a series of significant success stories have been identified.

FISCAL IMPACT SUMMARY:

Staffing savings are realized from a decrease in the number of hours a detective or other investigating officer would be required to perform surveillance or similar activity to develop a suspect that the stationary Flock system can provide with a simple query.

AXON VR DE-ESCALATION & DE-CONFLICTION TRAINING

YEAR INTRODUCED: FY 2021

RELATED CITY COUNCIL GOAL: #4 Prioritizing Safety and Wellness

To increase the ability of an officer to de-escalate a situation or to de-conflict an incident, thorough training is required. Axon provides this training through a Virtual Reality program that uses Occulus VR units. This system eliminates the need for expensive equipment and, a large amount of space for implementation.

FISCAL IMPACT SUMMARY:

The cost for this program is $20 per month per officer, for a total of approximately $11,000 per year.

POLICE DUTY PISTOL REPLACEMENT

YEAR INTRODUCED: FY 2022

RELATED CITY COUNCIL GOAL: #4 Prioritizing Safety and Wellness

Sworn members of the Williamsburg Police Department are issued Glock sidearms as their duty weapon. The current iteration of pistols was put into service in January 2015. Several industry groups recommend replacing duty pistols at or before 10 years of age. When WPD transitions to new pistols, the department will also transition to a new pistol caliber, which will save ammunition costs on an on going basis.

FISCAL IMPACT SUMMARY:

The transition to the 9mm round will produce a cost savings as the round is less expensive in both training and duty configurations.

SMARTWATER CSI

YEAR INTRODUCED: FY 2022

RELATED CITY COUNCIL GOAL: #4 Prioritizing Safety and Wellness

SmartWater CSI uses an invisible solution to discreetly mark valuables, making them tracable back to the original owner in the event that they are stolen. This system would be deployed to members of the community most at risk of suffering losses from burglary or other larceny crimes. The Williamsburg community would become known as a SmartWater community, and it is believed incidents of larceny would decrease. This would provide 200 kits for distribution within the community.

FISCAL IMPACT SUMMARY:

There is no fiscal impact beyond the fee for the program.

BOLAWRAP

YEAR INTRODUCED: FY 2022

RELATED CITY COUNCIL GOAL: #4 Prioritizing Safety and Wellness

The BolaWrap is a remote restraint device that deploys an 8-foot Kevlar tether to temporarily restrain subjects from a distance of 10 to 20 feet. This device will increase officer safety and reduce the likelihood of injury to persons who are aggressively resisting arrest.

FISCAL IMPACT SUMMARY:

There is no fiscal impact beyond the purchase price of the devices.

BREACHING TRAILER - ACTIVE THREAT RESPONSE TRAINING

YEAR INTRODUCED:

FY 2024

RELATED CITY COUNCIL GOAL: #4 Prioritizing Safety and Wellness

To enable officers to respond to active threats as expeditiously as possible, Williamsburg Police Department must train to breach doors to gain access to the perpetrator. WPD does not currently have any breaching training equipment. By purchasing a portable unit, WPD will be able to integrate breaching into larger active threat scenario training.

There are no foreseeable fiscal impacts of this project.

REAL-TIME CRIME CENTER TECHNOLOGY

YEAR INTRODUCED:

FY 2024

RELATED CITY COUNCIL GOAL: #4 Prioritizing Safety and Wellness

By unifying live video, data and sensor feeds from numerous existing sources, this project will enable Williamsburg Police Department to create a greatly enhanced situational awareness among officers responding to emergency situations and create a robust archive of information for investigators to exploit as they work to solve criminal offenses. This cloud-based technology increases staff efficacy while enhancing safety of officers and citizens.

FISCAL IMPACT SUMMARY:

There is no fiscal impact beyond the cost of the program.

CRIME SCENE VAN INSERT

YEAR INTRODUCED: FY 2023

RELATED CITY COUNCIL GOAL: #4 Prioritizing Safety and Wellness

Williamsburg Police Department’s forensic technician currently uses a regular police vehicle. This sport utility vehicle is not efficiently conducive for the transportation and use of the specialized equipment that is necessary for this function. A van that can be modified for this purpose is a more effective mode of transport. WPD seek to repurpose a retired Human Services van with a cargo insert designed for forensic services. This project will include funds to modernize some of the forensic tools used at crime scenes.

FISCAL IMPACT SUMMARY:

This vehicle will be put in the regular vehicle CIP program. We anticipate that this vehicle will have an extended life as it will not be included in the take-home vehicle fleet.

FY 2024 CAPITAL IMPROVEMENTS COMMUNITY DEVELOPMENT

PUBLIC ART PROGRAM

YEAR INTRODUCED: FY 2022

RELATED CITY COUNCIL GOAL: #3 Innovating a Modern City

RELATED INITIATIVE: Public Art

Funds in the Public Art Program pay for the curation and display of public art in the City to: celebrate the City’s past, present and future; enhance the City’s identity and economic vitality by encouraging people to spend more time in the City engaged with public art and; highlight and enhance the beauty and unique character of the City.

Funding for Public Arts is increased yearly so that total funding equals one percent of the expenditures of the Capital Improvement Plan (CIP). It is not reduced if one percent of CIP expenditures are less than the carryforward funds currently in the Public Arts project. The amount budgeted is an estimate which will be adjusted at year-end when carryforward amounts are known.

FISCAL IMPACT SUMMARY:

Staff costs represent the staff’s time to support the Public Arts Council and the projects selected by the Council. Costs are estimated to increase annually by approximately 3.5% for the cost of living and merit increases.

WILLIAMSBURG REDEVELOPMENT & HOUSING AUTHORITY

REPLACEMENT OF ROOFS AND GUTTERS

YEAR INTRODUCED: FY 2022

RELATED CITY COUNCIL GOAL: #4 Prioritizing Safety and Wellness

The Williamsburg Redevelopment and Housing Authority seeks to replace the roofs and gutters for all sites over a five-year period. It is the Authority’s goal to address four to six roofs per year.

FISCAL IMPACT SUMMARY:

The replacement of roofs and gutters was spread over five years, beginning in FY22. There are no other fiscal impacts until roofs and gutters are replaced, which will be in 20 to 30 years.

HVAC REPLACEMENT

YEAR INTRODUCED:

FY 2023

RELATED CITY COUNCIL GOAL: #4 Prioritizing Safety and Wellness

The Williamsburg Redevelopment and Housing Authority seeks to replace 10 HVAC units per year until all family site units (66 units) have an energy-efficient system.

FISCAL IMPACT SUMMARY:

Due to the age of the current HVAC systems at the family sites, the units are in need of an upgrade, making them more energy-efficient and reliable.

FENCE AND DUMPSTER RELOCATION

YEAR INTRODUCED: FY 2023

RELATED CITY COUNCIL GOAL: #4 Prioritizing Safety and Wellness

The Williamsburg Redevelopment and Housing Authority seeks to replace the trash compactor located at the Blayton Building to avoid extended shut-down periods due to system failure.

FISCAL IMPACT SUMMARY: Extended shutdowns to the compactor compromises the Authority’s ability to provide clean, decent and safe housing accommodation. Due to age and frequency of equipment repair calls, the Authority seeks the replacement of the trash compactor.

WORKFORCE HOUSING RENOVATIONS

YEAR INTRODUCED:

FY 2023

RELATED CITY COUNCIL GOAL: #4 Prioritizing Safety and Wellness

There are six housing units for employees in an effort to supply workforce housing. The housing is primarily offered to employees who can readily respond to emergencies so that the City derives a valuable benefit of having employees in close proximity to work. The amount of $85,000 is needed in FY24 to complete renovation work found during inspections of the units.

FISCAL IMPACT SUMMARY:

To maintain the workforce housing units, ensuring the presence of affordable housing in the City of Williamsburg.

FACILITIES MISCELLANEOUS REPAIRS & REPLACEMENTS

YEAR INTRODUCED: FY 2023

RELATED CITY COUNCIL GOAL: #2 Courageously Leading

Upkeep of the buildings maintains a fresh and professional appearance for the public buildings which is the outward and very visible face of the City of Williamsburg. Some repairs are required to maintain aging systems. In FY24, $42,000 is proposed for replacing the doors at the Community Building, $20,000 for repairing the Municipal Building balcony floor, and $35,000 for relocating the temporary fire station tent for reuse as storage. In FY25 and FY26, $200,000 is proposed for replacing the 20 custom doors and $40,000 for exterior repainting at the Transportation Center.

FISCAL IMPACT SUMMARY:

There is minimal fiscal impact other than the initial capital outlay for maintenance repairs and painting.

HVAC IMPROVEMENTS

YEAR INTRODUCED:

FY 2023

RELATED CITY COUNCIL GOAL: #2 Courageously Leading

This project will provide for improvements or replacements to various HVAC systems in building facilities. The improvements will allow for higher efficiency and improved operational capability as these systems age. In FY24 and FY25, a total of $440,000 is budgeted to replace the 20-year old HVAC system at the Community Building. Also in FY25, $60,000 is budgeted to add air conditioning to the City Shop repair bays once vacated by the Fire Department.

FISCAL IMPACT SUMMARY:

There is minimal fiscal impact other than the initial capital outlay for replacement equipment and control software upgrades.

ACCESS CONTROL AND SECURITY IMPROVEMENTS

YEAR INTRODUCED:

FY 2023

RELATED CITY COUNCIL GOAL: #4 Prioritizing Safety & Wellness

This project will provide for improved access control systems to enhance facilities personnels ability to operate in adverse conditions. FY24 funding of $18,000 is for upgrading the gas pump leak detection system per the Department of Environmental Quality recommendations and $250,000 is for a new generator proposed to provide backup power for the Municipal Building since it is now disconnected from the fire station. In FY25, $40,000 is proposed for installing an access control system for the Community Building. In FY26, $50,000 is proposed for an access control system for the Transportation Center. A diesel generator is proposed in FY27 at a cost of $150,000 for the Community Building since backup power is required at the City’s designated polling site.

FISCAL IMPACT SUMMARY:

There is minimal fiscal impact other than the initial capital outlay for control software and equipment.

ELECTRIC VEHICLE ACCESS

YEAR INTRODUCED:

FY 2024

RELATED CITY COUNCIL GOAL: #2 Courageously Leading

RELATED INITIATIVE: Carbon Emission Reduction

This project will provide for improved access to Electric Vehicle Charging Stations at public parking garages and parking lots. Upgrading two existing EV charging stations from Level 2 to Level 3 is proposed in FY24 and FY26 at approximately $10,000 per station (in 2022 dollars).

FISCAL IMPACT SUMMARY:

It is anticipated that operating costs for the EV stations will increase due to the improved use but this cost could not be determined.

OFFICE 365 YEAR INTRODUCED:

FY 2023

RELATED CITY COUNCIL GOAL: #6 Connecting with the World

The City of Williamsburg utilizes the features and functionality of the Microsoft Office 365 platform across the entire organization. This project renews that licensing on an annual basis.

FISCAL IMPACT SUMMARY:

No follow-on impacts related to the budget outside of the annual renewal.

PC REPLACEMENT PROGRAM

YEAR INTRODUCED: FY 2020

RELATED CITY COUNCIL GOAL: #2 Courageously Leading

Annually, the City follows a PC replacement schedule to replace computers that have reached end of life (four years) or fail during the fiscal year. The department requests $30,000 for this expense in each fiscal year.

FISCAL IMPACT SUMMARY:

The replacement of computers will not have a direct fiscal impact beyond the cost of completion. Efficiency is gained by staying current with new technology and software.

SWITCH INFRASTRUCTURE REPLACEMENT

YEAR INTRODUCED: FY 2023

RELATED CITY COUNCIL GOAL: #6 Connecting with the World

The switching infrastructure is the backbone of all city computing. This network of switches and routers allows the City to access all needed storage, computing, and cloud-based resources from any location in the organization. The current switch infrastructure has been in place for seven years and will be transitioning out of manufacturer support within the next year. This project will replace the switch infrastructure in its entirety and double the interconnecting speeds between City facilities and the primary data center, resulting in increased capacity and efficiency.

FISCAL IMPACT SUMMARY:

Annual maintenance support of $12,000 will be included in the IT hardware maintenance fund beginning in 2025.

ELECTRONIC POLLBOOK UPGRADE

YEAR INTRODUCED:

FY 2023

RELATED CITY COUNCIL GOAL:

#1 One Williamsburg

Per Virginia Election Law 24.2-629 and the newly adopted Electronic Pollbook Standards from the Department of Elections, the City’s current version of Pollbook software has been decertified as of June 30, 2022. The City is required to update its current Electronic Pollbook. There are 16 pollbooks in our inventory, and in FY23 10 new pollbooks ($20,000) were funded. This request is to add an additional three in both FY24 and FY25 to bring all of the current inventory up to date. The City of Williamsburg is one of a handful of localities in Virginia using the oldest version of software.

FISCAL IMPACT SUMMARY: No impact.

VEHICLES/EQUIPMENT

YEAR INTRODUCED:

FY 2024

RELATED CITY COUNCIL GOAL: #6 Connecting with the World

The City replaces vehicles following industry standards and after extensive use. When general fleet vehicles are replaced they are repurposed or sold as surplus. Following a replacement schedule in FY24, several vehicles are scheduled for replacement.

FISCAL IMPACT SUMMARY:

When City vehicles are replaced, they are either repurposed or sold as surplus. Typically operating and maintenance costs are reduced with newer vehicles.

WILLIAMSBURG LIBRARY REPLACEMENT

YEAR INTRODUCED: FY 2019

RELATED CITY COUNCIL GOAL: #5 Engaging with Our Partners

RELATED INITIATIVE: City Square Plan

The Williamsburg Library facility was constructed in 1974 with two additions in 1982 and 1988. The Williamsburg Regional Library system meets almost all major Virginia AAA Public Library Standards, with the exception of facilities, where it ranks a single A. The AAA standard is 1-square-foot per capita. The actual library space, minus the theatre and basement, is 25,000 square feet, which translates to .34 per capita of the population served. At 300% beyond recommended capacity, the library lacks any additional space to expand collections, collaborative work spaces, adequate seating, a teen area, interactive learning experiences, or other spaces for 21st-century library services.

The project start date begins in late FY23 with some design funding already allocated by the City. The localities are continuing discussions on a jointly funded capital project replacement library. The outcome of the negotiations will determine the final size of the new library project. The previous budget included $245,000 for HVAC repair and in FY24 this amount has been transferred to contingency until the new library is built, unless there is a catastrophic need for its use.

FISCAL IMPACT SUMMARY:

This will be determined when a design for new facility is decided.

WILLIAMSBURG/JCC COURTHOUSE MAINTENANCE PROJECTS

RELATED CITY COUNCIL GOAL: #5 Engaging with Our Partners

The City of Williamsburg and James City County jointly own and operate the Williamsburg/James City County Courthouse as authorized by §17.1-281 of the Code of Virginia. Each locality has previously authorized the assessment of a courthouse maintenance fee of $2 for each civil and criminal action and/ or traffic case in the District or Circuit Courts for the City of Williamsburg and James City County. The Clerk of the Circuit Court collects and remits fees monthly to the City’s Department of Finance, acting as agent for the Courthouse Maintenance Fund. Funds are invested in the Commonwealth of Virginia’s Local Government Investment Pool. Disbursements are approved by resolution of both the Williamsburg City Council and the James City County Board of Supervisors for capital projects deemed necessary.

FISCAL IMPACT SUMMARY:

Fiscal impact will be analyzed when specific projects are determined.

WILLIAMSBURG/JCC SCHOOLS

RELATED CITY COUNCIL GOAL: #5 Engaging with Our Partners

This project represents City contribution to various capital expenditures for the joint Williamsburg-James City County school system. These estimates are based on the school system CIP. The City’s share of these expenses is estimated at 10% of the FY24 total as stipulated in the current funding agreement between JCC and the City. Remaining funds for any projects not completed at fiscal year-end are carried forward to the following year.

FISCAL IMPACT SUMMARY:

The completion of work will not have a direct fiscal impact beyond the cost of completion due to improved reliability and efficiency of any new improvements, including appliances.

VEHICLE REPLACEMENT FIVE-YEAR PLAN SUMMARY

CAPITAL IMPROVEMENT PLAN (SALES TAX)

SALES TAX VEHICLES

BUILDING INSPECTION

CITY MANAGER

ECONOMIC DEVELOPMENT

ENGINEERING

FINANCE

FIRE

FIRE (CONTINUED)

HUMAN SERVICES

PLANNING

POLICE

POLICE (CONTINUED)

PUBLIC UTILITIES

PUBLIC UTILITIES (CONTINUED)

PUBLIC WORKS

PUBLIC WORKS (CONTINUED)

RECREATION

WILLIAMSBURG REDEVELOPMENT & HOUSING AUTHORITY

CITY OF WILLIAMSBURG MEMORANDUM

TO: ANDREW O. TRIVETTE, CITY MANAGER

FROM: PLANNING COMMISSION

DATE: FEBRUARY 15, 2023

RE: CAPITAL IMPROVEMENT PROGRAM (CIP)

The Williamsburg Planning Commission has completed its review of the proposed Five-Year Capital Improvement Program. The Commission held a public hearing on January 18, 2023, and a work session on January 25. Following a discussion on the CIP, the consensus of the Commission is to support the proposed Five-Year Capital Improvement Plan and strongly supports the following:

• Safety: Improving safety for pedestrians and bicyclists with a focus on improvements and repairs to walking surfaces, increased lighting, bus stop and crosswalk improvements, and safety for bicyclist and pedestrians. The Commission agrees with the tenets of Complete Streets, an approach to planning, designing, building, operating, and maintaining streets that enables safe access for all people who need to use them, including pedestrians, bicyclists, motorists and transit riders of all ages and abilities. The Commission request attention be paid to the following areas:

ƒ Merrimac Trail area,

ƒ Matthew Whaley to North Henry Street, and

ƒ Mill Neck Road from Jamestown Road through the S-Curve to the road/pathway into College Wood, and

• School Capacity: Addressing capacity issues at our local schools. A strong school system provides the best tools to educate our children, and helps our community attract the best teachers. Further, excellent schools are important for our future because they help attract new businesses, contributing many economic and social benefits to our city

• Affordable Housing: Examining and implementing recommendations from the Affordable Housing Work Group to improve the availability of workforce housing in the City.

• Civic Center Redevelopment: Ensuring there is a cohesive vision for the redevelopment of the Civic Center Area. The Commission strongly supports the statement in the City’s Goals, Initiatives, & Outcomes that improvements in this area should create a sense of place and be comprised of complementary architecture and design features.

• Broadband: Continuing the city’s current Broadband initiative and its possible future expansion to allow our citizens access to the internet as part of the city’s services.

• Stormwater Management: Update the 2014 revision of the Stormwater Management Design Manual to reflect our changing environment. Include details for mitigating flooding on major public roadways.

The Commission looks forward to continuing its partnership with you and your staff to develop and implement the City’s Capital Improvement Program.

James Boswell, Chair Williamsburg Planning Commission

UTILITY FUND CAPITAL IMPROVEMENT PLAN

FY 2024 CAPITAL IMPROVEMENTS UTILITIES

WATERSHED PROTECTION / WATER QUALITY

YEAR INTRODUCED:

FY 2020

RELATED CITY COUNCIL GOAL: #4 Prioritizing Safety and Wellness

The City has been aggressive in purchasing watershed property for several decades to protect our drinking water source. The City now owns or has conservation easements on 60% of the watershed. Funding is set aside in FY24 to provide additional land acquisition should property become available. Funding is also for other initiatives such as forestry management and security improvements to the Plant and watershed (signage, access control).

FISCAL IMPACT SUMMARY:

While protecting the watershed around Waller Mill Reservoir will ensure a high quality water source, purchase or control of more property will result in a larger area to be managed, but this minimal impact is eliminated with the increased water quality benefit to water treatment.

WATER TREATMENT IMPROVEMENTS

YEAR INTRODUCED:

FY 2024

RELATED CITY COUNCIL GOAL: #4 Prioritizing Safety and Wellness

The Water Plant was constructed in 1944 with a major expansion in 1978. As with many older structures, periodic repairs are needed due to deterioration and use. In FY24, $15,000 is budgeted for a structural evaluation of the floor system/basement ceiling, which has cracked and corroded due to chlorine exposure. Also included is $10,000 to install an automatic transfer switch in a weatherproof enclosure for the generator. A placeholder of $100,000 is included in FY25 for the floor system repairs, which will be better refined by the structural evaluation.

FISCAL IMPACT SUMMARY:

The completion of the work will not have a direct fiscal impact beyond the cost of completion.

WALLER MILL DAM IMPROVEMENTS

YEAR INTRODUCED:

FY 2020

RELATED CITY COUNCIL GOAL:

#4 Prioritizing Safety and Wellness

The City has an operation and maintenance permit for Waller Mill Dam from the Department of Conservation and Recreation (DCR). Due to new regulations, the dam went from a low hazard to a high hazard classification. This new designation may require a substantial amount of work be completed at the dam. Using new rainfall criteria required by the state, the City’s engineering firm did a study of the dam’s capability to handle a worst-case rainfall event. Results of the study indicated that the earthen dam would overtop. This means that the City may be required to raise the dam or armor it with structural material.

The City has a permit from the state conditioned upon improvements being made to the dam. Money was budgeted in FY21 for engineering work to review the latest state requirements and to determine options to protect the dam. Estimated budget figures are shown in FY22 and FY23 for construction of anticipated improvements. The City has applied for a grant from the Virginia Department of Emergency Management for up to $2,460,500 in federal and state aid with a $129,500 local match.

FISCAL IMPACT SUMMARY:

The impact of raising the dam and using existing on-site material means that additional operating costs would be minimal.

WATER TANK INSPECTIONS

The City owns and operates five storage tanks: Jamestown Elevated Tank, Magruder Elevated Tank, Riverside Elevated Tank, City Shop Ground Storage Tank, and Water Plant Ground Storage Tank. To protect against corrosion and maintain appearances, the coatings systems need to be periodically inspected to assess their integrity. The Riverside tank was constructed in 2010 and the four remaining in-City tanks were last recoated in 2014. The roof of the Water Plant tank was replaced in 2016.

FISCAL IMPACT SUMMARY:

Regularly scheduled inspection of the water system infrastructure should reduce operating costs and provide better planning for future capital expenditures. The completion of the work will not have a direct fiscal impact beyond the cost of completion.

SMART METERS & AMI IMPLEMENTATION

YEAR INTRODUCED: FY 2024

RELATED CITY COUNCIL GOAL:

#2 Courageously Leading

RELATED INITIATIVE: Smart City Initiatives

This project would replace existing water meters that are manually read, quarterly for residential meters and monthly for commercial meters, with radio transmitters on the register. The City has already started replacing meters with smart meters a few years ago and this project completes the system transfer. Smart meters improve quality of service and billing accuracy with detailed consumption data. In addition, they improve customer service by pinpointing trouble areas quickly with flags that identify leaks, reverse flow, and tampering. Other equipment known as Advanced Metering Infrastructure (AMI) would then be installed to recieve the signals and transmit them to the Municipal Building so that all meters could be read “at the touch of a button.” This would allow a transition to monthly billing for all customers, minimizing the risk of undetected leaks and unaccounted for water, while providing a lower monthly bill than the current quarterly billing. FY24 funds are programmed at a total cost of $875,000.

FISCAL IMPACT SUMMARY:

AMI will reduce the labor costs of reading meters but will increase utility billing costs and workload. However, the net benefit is lower while providing great benefits to the customer with monthly billing.

MOORETOWN

ROAD WATER MAIN EXTENSION

YEAR INTRODUCED:

FY 2023

RELATED CITY COUNCIL GOAL: #3 Innovating a Modern City

This project would connect an existing 16 inch main at the St. Demetrios Greek Orthodox Church at 4900 Mooretown Road to an existing 12 inch main that crosses the CSX railroad tracks at Williamsburg Storage at 5151 Mooretown Road. Most of the project is in York County and would improve flows and provide redundancy for the Mooretown Road and Richmond Road corridor north of Bypass Road. The loop would also improve water quality and fire protection for the area. The total length is 1,550 feet and requires crossing several pipelines and infrastructure in the Dominion Energy right-of-way as well as an encased crossing of Mooretown Road.

Funds are programmed at a cost of $10,000 to complete the engineering design in FY24, and $385,000 for construction in FY25.

FISCAL IMPACT SUMMARY:

The additional cost for maintenance of the new pipeline is offset by lower operating costs due to lowering of hydraulic losses in a looped system and greater reliability.

PENNIMAN ROAD

WATER MAIN INTERCONNECT

YEAR INTRODUCED:

FY 2023

RELATED CITY COUNCIL GOAL: #3 Innovating a Modern City

This project would connect an existing 12 inch main at the City limit on Penniman Road to an existing 12 inch main that crosses the CSX railroad tracks just east of Harrop Lane. The entire project is in York County and would improve flows for the entire Penniman Road area and provide redundancy for the Second Street corridor. The loop would also improve water quality and fire protection for the area. The total length is 1,320 feet. Service lines for the 10 existing customers in Middletown Farms that front Penniman Road would be replaced and the small diameter galvanized steel main serving these homes abandoned.

FY26 funds are programmed at a total cost of $300,000.

FISCAL IMPACT SUMMARY:

The additional cost for maintenance of the new pipeline is offset by lower operating costs due to lowering of hydraulic losses in a looped system and greater reliability.

WATER SYSTEM CONDITION ASSESSMENT & PLANNING

YEAR INTRODUCED: FY 2023

RELATED CITY COUNCIL GOAL: #3 Innovating a Modern City

The City’s water distribution system dates to the late 1910s and early 1920s. Significant expansion corresponding to annexations in 1923, 1943, 1964, and 1984 was accomplished as the City grew, but there are still many older parts of the system still in operation. This project is to provide funds for a consultant to evaluate the existing water distribution system and determine conceptual scopes for improving the pipe network through either replacement due to age or condition, capacity increases where needed, looping for redundancy, valve installations to enhance operations, and sensors for leak detection.

A master plan would aid in programming of capital improvements over the next 10 to 15 years to provide the best benefit for dollars expended as well as aid in applying for state and federal grant funds.

FISCAL IMPACT SUMMARY:

No direct operating impacts will be felt with this project; however, the projects generated from the plan would provide greater efficiency.

LEAD COPPER RULE REVISION COMPLIANCE

YEAR INTRODUCED: FY 2024

RELATED CITY COUNCIL GOAL: #4 Prioritizing Safety and Wellness

The U.S. Environmental Protection Agency’s revisions to the Lead and Copper Rule better protects children and communities from the risks of lead exposure by better protecting children at schools and childcare facilities, getting the lead out of our nation’s drinking water and empowering communities through information. On Aug. 4, 2022, the EPA released Guidance for Developing and Maintaining a Service Line Inventory to support water systems with the efforts to develop inventories and to provide states with needed information for oversight and reporting to the EPA. The compliance deadline for the City to complete the service line inventory is Oct. 16, 2024. This project is to support activities to determine the service line material for those lines that are currently unknown, although none are suspected of being made from lead.

FISCAL IMPACT SUMMARY:

The completion of the work will not have a direct fiscal impact beyond the cost of completion.

LAGOON SLUDGE REMOVAL

The Water Plant must backwash the filter tanks and the sedimentation basins that produce wastewater directed to two on-site lagoons. The waste is mostly liquid with residuals of the chemicals added to treat the water such as carbon, alum, and fluoride.

The wastewater flows by pipe to the wastewater lagoons. The solids/sludge settle to the bottom and eventually, over time, fill up the lagoons. The sludge needs to be removed. The lagoons will need to be cleaned soon – $120,000 is budgeted in FY25 for that project.

FISCAL IMPACT SUMMARY:

The completion of the work will not have a direct fiscal impact beyond the cost of completion.

SEWER SYSTEM REHABSSO PROGRAM

YEAR INTRODUCED: FY 2020

RELATED CITY COUNCIL GOAL: #3 Innovating a Modern City

The original consent decree issued to all Hampton Roads Sanitation District (HRSD) localities by the Virginia Department of Environmental Quality (DEQ) was revised substantially. HRSD is managing the more extensive Sanitary Sewer Overflow (SSO) capacity problems, including those associated with the Regional Wet Weather Management Plan (RWWMP). The localities are responsible for their respective collection systems and are charged with resolving structural deficiencies and issues associated with management, operations, and maintenance (MOM) of the sanitary sewer system. As such, the City is budgeting money for inspection, repairs, and rehabilitation.

FISCAL IMPACT SUMMARY:

These capital expenditures will be a factor in increasing utility rates. However, upgrading the sewer system will help reduce operation and maintenance costs.

SANITARY SEWER CONDITION ASSESSMENT & PLANNING

INTRODUCED: FY 2023

RELATED CITY COUNCIL GOAL: #3 Innovating a Modern City

The City’s sanitary sewage collection system dates to the early 1930s with the onset of the reconstruction. Significant expansion corresponding to annexations in 1943, 1964, and 1984 was accomplished as the City grew, but there are still many older parts of the system still in operation. This project is to provide funds for a consultant to evaluate the existing sewage system and pumping stations and determine conceptual scopes of work for necessary repair, rehabilitation, and replacement in a logical and systematic manner. The project will also generate inputs for the HRSD Regional and Local Hydraulic Model databases as required by the Regional Consent Order. This data will be incorporated into the City’s GIS system.

A plan would aid in programming of capital improvements over the next 10 to 15 years to provide the best benefit for dollars expended as well as aid in applying for state and federal grant funds.

FISCAL IMPACT SUMMARY:

No direct operating impacts will be felt with this project, however, the projects generated from the plan would provide greater efficiency.

SEWER PUMP

STATION RELIABILITY

YEAR INTRODUCED:

FY 2020

RELATED CITY COUNCIL GOAL:

#2 Courageously Leading

RELATED INITIATIVE: Smart City Initiatives

There are 15 sewage pumping stations in the City. Because the City drains into shellfish waters, the stations are classified as Reliability Class I stations, which provides for the strictest standards of reliability. For example, the stations are required to have emergency backup power or other means of operating the pumps in case of power failure. As part of the Sanitary Sewer Overflow (SSO) Consent Decree, pump stations were identified as critical infrastructure to operate/maintain to avoid sewer overflows. These designations require heightened maintenance and failure avoidance.

FISCAL IMPACT SUMMARY:

The completion of the work will not have a direct fiscal impact beyond the cost of completion due to improved reliability and efficiency of any new improvements, including equipment.

WATER/SEWER SYSTEM CONTINGENCY

YEAR INTRODUCED:

FY 2020

RELATED CITY COUNCIL GOAL: #3 Innovating a Modern City

Water and sewer system contingency funds must be budgeted to cover unforeseen items on a yearly basis. The utility must have the money reserved in order to continue to operate on a continuous basis. Examples of water and sewer contingency expenditures include:

• Emergencies, such as major pipe line failures, pump/motor replacement, or generator failures

• Contributions to new infrastructure installed by development

• Capital project

FISCAL IMPACT SUMMARY:

There is no fiscal impact to these contingency funds.

VEHICLES/EQUIPMENT

YEAR INTRODUCED: FY 2020

RELATED CITY COUNCIL GOAL: #3 Innovating a Modern City

The City replaces vehicles following industry standards and after extensive use. Following a replacement schedule in FY24 and FY26, several vehicles are scheduled to be replaced as follows:

• 2004 Vactor Sewer Cleaner and 2009 Ford 350 diesel in FY24

• 2013 Ford Explorer in FY26

FISCAL IMPACT SUMMARY:

When City vehicles are replaced, they are either cycled down in the organization or sold as surplus.

GUIDE

INTRODUCTION

This Guide is designed to assist those responsible for preparing the ANNUAL OPERATING BUDGET and the FIVE-YEAR CAPITAL IMPROVEMENT PLAN of the City of Williamsburg. The budget process defines, communicates, and funds the City’s programs and priorities. The completed budget is City Council’s financial road map and a primary management tool for the city manager and department heads. To that end, it must be a quality document, and our best efforts should be expended in its preparation.

The BUDGET GUIDE is a formal call for all departments of the City, and agencies associated with the City, to prepare and submit an estimate of the resources required for the next fiscal year. It includes a set of procedures for building a comprehensive budget to be submitted to City Council in March each year. It also serves as a mid-year review to identify adjustments necessary to the current year budget.

AUTHORITY

The Charter and Code of Ordinances of the City of Williamsburg, as well as the Code of Virginia, prescribe budgetary responsibility and process. Budgetary accounts are maintained according to the UNIFORM FINANCIAL REPORTING MANUAL FOR VIRGINIA COUNTIES AND MUNICIPALITIES, as prescribed by the Auditor of Public Accounts, Commonwealth of Virginia. This guide consolidates pertinent budgetary information as concisely as possible, providing a reference for making sound, informed, consistent budget decisions.

FY 2024 BUDGET CALENDAR

OCT 2022

3 Finance and Human Services Departments distribute applications to outside agencies advising of budget submittal requirements and deadlines (including Tourism). Requests are due back to Finance/Human Services on Nov. 10

7 Instructions sent to departments for FY24 operating budget requests, FY24 CIP requests, FY23 CIP updates and Performance Metrics. Training class held Nov. 9. Requests and updates are due on or before Dec. 1.

11 Preliminary Revenue Projections

NOV 2022

10 Outside Agency Request due to Human Services or Finance

15 Revise preliminary revenue projections

23 FY24 CIP and FY23 CIP update requests due

DEC 2022

1 Taxes Due

1 Input of operating budget request due in the systems

8 City Council Meeting – Presentation of FY22 audited results

12 Human Services Advisory Board recommendations due

12 Meet with departments on Operating Budgets, Performance Metrics and CIP this week

JAN 2023

1 Finance/Planning Directors begin finalizing the City’s FY23 Capital Improvement Plan status update and new proposed FY24 Capital Improvement projects

18 Planning Commission holds public hearing on proposed Capital Improvement Plan

25 Planning Commission Work Session –Capital Improvement Plan

FEB 2023

6 City Council Work Session

9 City Council Meeting – Amend Real Estate Revenue FY23

14 City Council Retreat on budget preview and long-term financial outlook

15 Planning Commission Meeting –CIP Letter to City Manager

MARCH 2023

4 Advertise proposed property tax increase, if applicable. (30-day minimum notice requirement VA Code § 58.13321) March 11 is the contingency date.

6 City Council Work Session –Outside Agencies Presentations

9 City Council Meeting

10 First Notice of public hearing for water rate increase advertisement, if applicable. (VA Code §15.2-2143)

31 Proposed FY24 Operating and Capital Improvement Budgets delivered to City Council and the media. Per City Charter Section 34.1, the City Manager, on or before April 15 of each year, shall prepare and submit a budget proposal to the City Council.

APRIL 2023

1 Budget synopsis / Notice of Public Hearing on Proposed Budget advertised. (VA Code § 15.2506, 7-day minimum notification) Backup date is April 5.

1 Second Notice of public hearing for water rate increase advertisement, if applicable. (VA Code § 15.2-2143)

10 City Council Work Session – Overview of FY24 Budget and Open Forum

13 City Council Meeting – Public Hearing on Proposed Budget, Tax Levy, and Utility Rates

MAY 2023

8 City Council Work Session

11 City Council Meeting – Adopt FY24 Operating, Capital, Utility, Tourism, Public Assistance, and Quarterpath CDA Fund Budgets with Budget Resolution with new tax rate, if applicable. Per City Charter Section 34.2 the budget shall be formally adopted no later than June 1

JULY 2023

1 Begin Fiscal Year 2024

AUGUST 2023

11 Printed budget documents distributed to City Council

SUMMARY BUDGET CALENDAR

November 10, 2022

Outside Agency Requests Due

January 18, 2023

Planning Commission

Public Hearing on Proposed CIP

February 14, 2023

City Council Budget Retreat

March 4, 2023

Advertise Proposed Property Tax Increase, if Applicable

March 6, 2023

Outside Agency Presentations to City Council

By March 31, 2023

FY 2024 Proposed Budget Published Online; Online Public Input Begins via Balancing Act

April 10, 2023

FY 2024 Proposed Budget Overview Presented to City Council

April 13, 2023

Public Hearing on Proposed Budget

May 11, 2023

City Council Adopts

FY 2024 Budget

FY 2024 OPERATING BUDGET INSTRUCTIONS

GENERAL

In early October, Finance staff will provide instructions and access to the Munis budget system for departments with operating activity for the departments to review and update departmental line items:

A. Prior year’s expenditures for the last two fiscal years

B. Current year budget

C. Current year expenditures

D. A column for estimating CURRENT FISCAL YEAR total expenditures through June 30

E. A column for NEXT FISCAL YEAR’S line-item budget estimates

Each department head should complete ITEMS

D AND E. The current year estimate is both the basis for recommending amendments to the current year’s budget and for determining next year’s amount for consideration by City Council.

Recommendations on PERSONNEL EXPENDITURES (addition/deletion of positions, etc.) should be submitted in memo form. Payroll and fringe benefits line items in the system should be left blank. Finance will calculate and enter these line items.

REMINDERS FOR PREPARERS OF BUDGET REQUESTS

1. Analyze each line item separately. Compare historical data, current year budget, and estimated spending levels for the current year to assist with your request.

2. Round all figures to the nearest $10.00 (i.e., $32 to $30 and $85 to $90).

3. Verify all object codes, amounts, and totals.

4. Meet all Budget Calendar deadline dates. Preparers should highlight key dates and actions.

5. Keep backup materials used in computing your budget request. These will be used both in explaining budget recommendations and administering the budget.

6. Departments are responsible for managing their operating budget by closely monitoring expenditures and encumbrances against the budget monthly. Written requests for BUDGET ACCOUNT TRANSFERS or SUPPLEMENTAL APPROPRIATIONS must be submitted on forms provided and approved before obligating spending over the adopted budget.

FY 2024 CAPITAL IMPROVEMENT PLAN INSTRUCTIONS

DEFINITION OF A CAPITAL PROJECT

The Capital Improvement Plan (CIP) identifies, schedules, and budgets capital projects. A capital project is a major expenditure that adds to the net assets of the City. Capital projects fall within one or more of the following categories:

1. Land acquisition or long-term lease.

2. Construction of buildings, public facilities, and infrastructure, generally exceeding $20,000

3. Acquisition or improvement of property, generally exceeding $20,000

4. Major additions or rehabilitation to public facilities, generally exceeding $20,000.

5. Major studies such as engineering, feasibility, etc., related to public facilities.

6. Vehicles and equipment, generally exceeding $10,000

Examples of capital projects include street construction, sewer lines, parks, sidewalks, storm drains, water lines, building construction or major renovation, fire trucks, and police cars.

Engineering or planning studies, which are directly linked to a specific capital project, are part of the cost of that project. Such engineering studies should be included in the project description of which they are a part.

Other studies and plans, which constitute a major expense of a non-recurring nature, are included in the CIP even if they are not assets in the sense of a building.

RELATION BETWEEN CAPITAL BUDGET AND CAPITAL IMPROVEMENT PLAN

The Five-Year Capital Improvement Plan is presented annually to the City Council. THE FIRST YEAR OF THE CAPITAL IMPROVEMENT PLAN IS A CAPITAL BUDGET AND CONTAINS THE LIST OF PROJECTS FOR IMPLEMENTATION DURING THE COMING FISCAL YEAR. The CIP is updated annually as new needs become known and as priorities change. It is possible that a project with low priority can remain in the CIP program longer than five years as more important projects appear and move ahead of it. Conversely, a project may be implemented sooner than originally planned due to changing priorities.

PROJECT REVIEW

All requests for capital projects and input on priorities will be evaluated by the city manager and finance director before being submitted to City Council.

The Planning Commission will receive the proposed Capital Improvement Plan when it is distributed to City Council. The Commission will be invited to advise Council on the consistency of the CIP with the Comprehensive Plan of the City.

CAPITAL PROJECT FORM

Capital Improvement Plan projects will be submitted on forms provided by the City Manager. The following is a non-inclusive list of project categories:

• Streets & Traffic

• Solid Waste Management

• Building Improvement

• Economic Development

• Parking Facilities

• Property Acquisition

• Stormwater Management

• Park Development

• Water & Wastewater Improvements

• Field Equipment

• Planning/Feasibility Studies

• Vehicles

FIVE-YEAR VEHICLE REPLACEMENT PLAN

All vehicles owned by the City are listed on a replacement plan. The plan is based on a five-year projection. It is updated annually along with the CIP.

ANNUAL UPDATE

Each year departments submit an update to the CIP as the first step in budget formulation. Updates include:

1. New Projects - Submission of a Capital Project Form for new projects with a description of the project, funding source(s), estimated costs, an operating budget fiscal impact statement, and an appropriate picture of the project.

2. Existing Projects - Submission of a statement for each CURRENT YEAR PROJECT of work accomplished at the SIX-MONTH point and the accomplishments expected by the TWELVE-MONTH point.

3. Submission of a revised CAPITAL IMPROVEMENT SUMMARY for that portion of the CIP assigned to the originator’s department.

The SECOND STEP requires department heads to provide a status report by Dec. 1 of each year for all projects funded during the prior fiscal year ended June 30. This information will be provided to the Finance Department to determine the balance of capital projects funds needed to carry forward to the next fiscal year for project completion.

FY 2024 BIENNIAL GOAL SETTING

The City of Williamsburg has a vision for the future. In order to advance the City’s vision, every two years, the City Council identifies new strategic objectives for the City government. The biennial GOALS, INITIATIVES, AND OUTCOMES (GIOS) provide an expression of city priorities, as specific and measurable as possible, covering a two-year period.

Two or three new or incumbent council members are elected in November of evennumbered years. The newly elected council members inherit a recently adopted strategic plan giving them time to become familiar with the workings of city government before attempting to chart the City’s course. This is done through a methodical goal-setting process in the fall of even numbered years. The City Council adopted goals then become a guide for the two succeeding budgets.

In this way, the Council spends the six months prior to the election deciding what should be accomplished based on various forms of public input and staff recommendations, and the remaining 24 months before the next election concentrating on implementing its goals. This process, with a newly elected Council inheriting a strategic plan, provides much-needed stability to the organization.

Goals provide both means of SETTING PRIORITIES and a standard against which to measure EFFECTIVENESS. Goal setting is an integral part of the budget process and drives the budget process.

In order to be fully useful, GOAL STATEMENTS SHOULD HAVE THE FOLLOWING CHARACTERISTICS:

• Goals should be as SPECIFIC as possible.

• Goals achievements should be MEASURABLE

• Goals should be SHORT-RANGE, one or two years. Longer-range goals should be expressed in terms of what intermediate goals or objectives must be undertaken now to achieve the ultimate goal.

• Goals should be developed BY EXCEPTION

The continuation of existing policies and practices of city government should not be listed as goals, however important they may be. Only new or altered policies or practices should be listed.

• Goals should be followed by an IMPLEMENTATION STRATEGY provided in operating and capital budgets.

• The COST of achieving a goal should be counted in terms of TIME, MONEY, AND COMMITMENT, realizing each goal actively pursued takes away resources that could be applied to other activities.

• Goals should be limited to those that city government has the POWER TO ACHIEVE

While it may be well to state goals which are primarily the responsibility of others, it should be recognized that while the City has considerable INFLUENCE, it does not have substantial CONTROL over such goals.

The calendar below outlines City Council’s Goals, Initiatives, and Outcomes process. The City Council’s two-year election cycle fits well with this biennial goal setting cycle.

CALENDAR

(EVEN NUMBER YEARS ONLY)

MAY National Community Survey (NCS) Conducted.

AUGUST City Manager provides status report on accomplishments of stated goals. Council holds retreat to evaluate goal accomplishments and discuss future priorities. NCS results are provided.

SEPTEMBER Council provides citizen participation opportunities to gain citizen ideas and suggestions on goals, past and future.

NOVEMBER City Council Election.

City Manager presents a draft Biennial Goals, Initiatives and Outcomes (GIOs) based on the outcome of the retreat and public comment for Council consideration. Council has workshop sessions as necessary.

City Council adopts the new biennial GIOs.

City Staff begins work on the operating and capital budgets for the coming fiscal year reflecting priorities in the statement of goals.

DECEMBER The Mayor delivers a “State of the City” address.

JANUARY 1 New Council members take office.

FY 2024 BUDGETARY ACCOUNTS

BUDGETARY ACCOUNTS AND RESPONSIBILITY

The City of Williamsburg operates its budgetary system on a FUND ACCOUNTING basis.

The funds used by the City of Williamsburg are GOVERNMENTAL, FIDUCIARY, and PROPRIETARY. The Governmental Funds consist of the General Fund (001), Tourism Fund (003), the Capital Improvement Plan (Sales Tax 004), the Public Assistance Fund (006), and the American Rescue Plan Act Fund (777). The Fiduciary Fund consists of the Quarterpath Community Development Authority (QCDA 555). The Proprietary Fund is an Enterprise Fund (010) which accounts for the City water and wastewater as the Utility Fund.

The General Fund is used to account for all financial resources except those required to be accounted for in one of the other funds. The General Fund encompasses all City departments, except utilities, and includes entities funded through City government, such as constitutional officers, detention, schools, library, and outside agencies.

The Tourism Fund is a major special revenue fund used to account for tourism tax revenue (1% Historic Triangle regional sales tax and $2 lodging tax). The expenditures in the Tourism Fund are for the purpose of funding tourism development projects.

The Public Assistance Fund is a non-major special revenue fund used to account for the social services programs of the City and is funded primarily through intergovernmental revenues.

American Rescue Plan Act Fund is a fund to

account for the activities funded by the State and Local Fiscal Recovery Funds provided by the federal government under the American Rescue Plan Act to respond to the impacts of the COVID-19 pandemic. This fund also includes ARPA funding for Municipal Utility Relief Funding, ARPA Tourism funding passed through from the Commonwealth and COVID-19 contingency.

The Capital Improvement Plan is used to account for major capital outlay items. Historically, the City has used the state’s 1% sales tax revenue to fund capital projects.

The City has one Fiduciary Fund, the Quarterpath Community Development Authority (QCDA), for which the City collects special assessments on behalf of the QCDA.

Enterprise Funds are used to account for operations that are financed and operated in a manner similar to private business. The intent of these operations is that the cost of providing continued services to the public be financed primarily from user charges and fees.

DEPARTMENTAL CODES AND RESPONSIBILITY

lists the individual responsible for submitting and managing each departmental budget.

REVENUE SOURCES AND TRENDS documents all existing and potential sources of revenue received by the City of Williamsburg to finance its operations each year. It contains a thorough description of each revenue source, trends, and other pertinent information that should help the reader gain an understanding of the basis of each of these sources.

EXPENDITURE CLASSIFICATIONS provides an explanation of each line item to help in properly and consistently classifying expenditures.

DEPARTMENT CODES & RESPONSIBILITY

REVENUE SOURCES & TRENDS

GENERAL PROPERTY TAXES

General Property Taxes account for approximately 47% of the City’s general fund operating revenues. These taxes are derived from the annual assessment of real estate and tangible personal property located in the City. The City Assessor appraises real estate property annually. This category includes property tax collections for current and delinquent years. Also included in this category are collections for Public Service Corporations, property appraised by the State Corporation Commission, and cover real, personal property, and machinery and tools. Revenues received for property tax on mobile homes, boats, and motorcycles are also included in this revenue category.

REAL PROPERTY TAXES

By state law, all real property taxes must be assessed each year at 100% of fair market value. The assessments are made on a fiscal year basis and must be complete and mailed to property owners by June 30 for the next fiscal year. Taxes are then due on Dec. 1 and June 1 of that fiscal year. The current tax rate (FY23) is $.62 per $100 of assessed value. The City’s real estate tax rate history is shown in the following tabulation:

Real property taxes generated by other selected Virginia localities for the fiscal year ended June 30, 2022 are as follows1:

Real property tax revenues received during the past 10 fiscal years are shown below2:

1 Commonwealth of Virginia – 2021 Comparative Report of Local Government Revenues and Expenditures – Exhibit B 2 City of Williamsburg’s Annual Comprehensive Financial Reports. Amounts include prior years’ delinquent real estate tax receipts.

Real estate taxes are generated based on the annually reassessed value of property. Taxable real estate property values for the last 10 fiscal years are as follows:

For each 1¢ of the City’s tax rate, approximately $248,284 is generated annually, based on the 2023 land book values. New construction each year tends to skew increases in total property valuations shown above from year to year.

PERSONAL PROPERTY TAXES

Tangible personal property is classified into two categories for valuation purposes, personal and business property. Cars, trucks, boats, trailers, etc., comprise personal property, and furniture, fixtures, and machinery account for business property. Property is assessed each Jan. 1, and taxes are due on Dec. 1 of the same year. The rate of assessment for motor vehicles is determined by the NADA or “Blue Book” average loan value. Furniture, machinery, etc., is assessed at 30% of the original cost. The City does not prorate for partial year occupancy. The tax rate is $3.50/$100 of assessed value.

Personal property taxes generated by select Virginia localities for the fiscal year ended June 30, 2022, are as follows3:

*Includes Machinery & Tools and excludes State reimbursement for Personal Property Tax Relief Act.

Personal Property tax revenues received during the past 10 fiscal years are shown below4:

*Business personal property tax receipts include autos, machinery, & tools

3 Commonwealth of Virginia – 2021 Comparative Report of Local Government Revenues and Expenditures

4 City of Williamsburg’s Annual Comprehensive Financial Reports. Amounts include prior years’ delinquent personal property tax receipts and state share of personal property tax reimbursement.

PUBLIC SERVICE CORPORATIONS

Tax revenues are generated by public service corporations based on annual assessments of property, both real and personal, by the State Corporation Commission. Public service corporations are those providing services such as water, heat, light and power, telecommunications, and railroads within local government boundaries. Property assessments for the last 10 fiscal years, along with the total revenue receipts for public service corporations are provided as follows:

PENALTIES AND INTEREST

Personal property and first-half fiscal year real estate taxes are due Dec. 1 each year. Second half real estate taxes are due June 1. Penalties are charged on all property tax accounts if not paid by these due dates. Penalty charges for delinquent property taxes are as follows:

Interest charges begin Jan. 1 for delinquent first-half real estate and personal property taxes and July 1 for second-half taxes. Interest is computed monthly, with an annual percentage rate of 10% as provided for in the Williamsburg City Code.

Penalty and interest revenues over the past 10 fiscal years are shown in the following table:

OTHER LOCAL TAXES

This category of local revenues differs from general property taxes in that they are not billed by the City, except in the case of business licenses. They are dependent on business volume, and most are self-imposed. Businesses report sales activity directly to the City, and charges are based on these reported figures. Business activity is subject to verification by the Commissioner of Revenue.

LOCAL SALES AND USE TAXES

Effective July 18, 2018, additional Historic Triangle Regional sales and use tax of 1% was levied for all of York County, James City County, and City of Williamsburg businesses under the authorization of Senate Bill 942, which raised the overall general sales tax to 7%. The taxes are collected and submitted to the Virginia Department of Taxation on a monthly basis, and 1% of these proceeds are then returned to the City directly from the state. As a matter of policy, the City has designated the original 1% to pay for its ongoing capital improvement program, and the new 1% is reported in the Tourism Fund. Revenues received from the Commonwealth of Virginia for sales taxes over the last 10 fiscal years are as follows:

CONSUMER UTILITY TAXES

Use taxes are collected by public utility companies and remitted to the City on a monthly basis. City Council approves the rates charged annually. Telecommunications sales taxes since FY07 are 5% for all Virginia localities. The following table highlights the purpose and rates charged by these utility companies in effect during the fiscal year 2024:

The Commonwealth of Virginia deregulated gas and electric utilities in 2001. Since then, local utility taxes for those industries are designed to be revenue-neutral to localities. Beginning July 1, 2003, the City of Williamsburg began imposing a tax on wireless communications. Total receipts collected over the last 10 fiscal years are as follows:

BUSINESS LICENSE TAXES (BPOL)

All businesses in the City must obtain a business license to operate. The Commissioner of the Revenue sends business license applications in late December each year. Forms provided include prior year information - name, address, type of business conducted, gross receipts, etc. - and it is the responsibility of licensees to confirm or change information. The applications must be returned to the Commissioner by Feb. 15. The charges for business licenses are based on gross receipt figures provided on the application. The due date for payment of business licenses is March 1 each year, with a 10% penalty beginning March 2 and interest accruing at a 10% annual percentage rate.

A detailed list of rates is provided for information purposes.

Business Licenses receipts over the last 10 fiscal years are as follows:

UTILITY LICENSE FEES

The Code of Virginia, § 58.1, governs the licensing and regulation of cable television in the City. Gas and electric utilities using the City streets and right-of-ways to conduct business are classified here also, with consumption taxes set by state code. The Code of Virginia § 58.1-2904 imposes consumption taxes on consumers of natural gas in the City, and the Code of Virginia § 58.1-2900 covers consumption taxes on electricity in the City. These taxes are separate from consumer utility taxes charged monthly. The City’s current franchise agreement with Cox Communications expires in 2026.

ACTIVITY

Cable TV

Telephone

FEE

5% of gross receipts

$.50 per access line

Gas $.004/CCF first 500CCf per month

Electric

Under 2,500 kWh = $.00155/kWh/month

2,500 – 50,00 kWh = $.00099/kWh/month

over 50,000 kWh = $.00075/kWh/month

Taxi & Bus Services $100 flat fee plus $100 per cab owned

Utility License fees collected over the past 10 years are shown below:

*Public, Educational and Governmental Access Channels (PEG).

BANK STOCK TAXES

Every incorporated bank, banking association, or trust company organized by or under the authority of the laws of the Commonwealth are responsible for filing bank franchise taxes5 A specific state tax form is prepared annually for banks and filed with the Commonwealth of Virginia. The City’s local tax is 80% of the state tax rate of $1.00 per $100 of a bank’s taxable value on Jan. 1 of each year. Banks submit the portion of their total bank stock taxes to local governments based on the percentage of banking operations within each locality. Bank stock tax collections over the past 10 years are shown below:

Commonwealth of Virginia, Dept of Taxation, Virginia Bank Franchise Tax, 1997 Forms

RECORDATION TAXES

State law gives City Council the power to impose recordation taxes upon the first recordation of each taxable instrument recorded in the City. Taxable instruments generally consist of deeds, deeds of trust, and marriage licenses. The rate charged is $.15 on every $100 or fraction thereof of the consideration of the deed or the actual value of the property conveyed, whichever is greater6. For deed recordation in excess of $10M value, a sliding scale is used. The Clerk of the Circuit Court is responsible for collecting and remitting these fees monthly to the City. In addition to these fees, a local tax is imposed (equal to up to ⅓ of the state recordation tax) and submitted to the City. The City has charged this maximum fee for many years. A grantor’s tax is also collected by the Clerk of the Circuit Court and submitted to the State for quarterly distribution. This tax is classified under the Non-Categorical Aid section of this report. Local recordation taxes collected over the past 10 fiscal years are as follows:

CIGARETTE TAXES

The City of Williamsburg began imposing a cigarette tax of 25¢ per pack on July 1, 2003, and the current rate for FY22 is 40¢ per pack. The timing of vendor stamp replenishment is unpredictable each year. Total cigarette taxes collected over the past 10 years are as follows:

HOTEL & MOTEL ROOM TAXES

The City levies a transient occupancy tax on hotels, motels, bed and breakfasts, and other facilities offering guest rooms at a rate of 5%. Businesses collect this tax and submit it to the City by the 20th of the following month. Room tax collections over the last 10 fiscal years are:

RESTAURANT/FOOD TAXES

The Code of Virginia allows the City to impose this excise tax on all food and beverages sold in the City as a meal. City Code defines “food & beverages” as all food, beverages or both, including alcoholic beverages, which are meant for refreshment or nourishment value, purchased in or from a restaurant, whether prepared in such restaurant or not, and whether consumed on the premises or not.7 Restaurant Food tax rate is 5%. Meal tax collections over the last 10 fiscal years are:

The City’s adopted fiscal year FY 2024 operating budget estimates room & meal tax revenues to be $12,480,000, or 26.85% of the total operating budget. Rates charged by nearby Virginia localities, and the percentage of budgeted FY 2022 receipts to total operating budgets, are presented below:

*In addition to room taxes, the City of Williamsburg, James City County and York County collect a $2.00 per night per room tax, which commenced on July 1, 2004, per Code of Virginia, section 58.1-3823C. The revenues generated are designated and expended solely for tourism development. Half of the receipts are sent to the state’s Historic Triangle Marketing Fund, and the other half the City retains in the Tourism Fund. In addition, Virginia Beach, Newport News, and Hampton charge a flat-rate tax of $1 per night per room, and Norfolk charges $2 per night per room. ^For Virginia Beach, only a 2% room tax rate and a 3.5% meals tax rate is allocated to the General Fund. Percentage of Budget shown for Virginia Beach is that portion dedicated to the General Fund only.

PERMITS, PRIVILEGE FEES AND REGULATORY LICENSES

The City uses the Virginia Uniform Statewide Building Code (USBC), which covers new construction, renovation, demolition, plumbing, gas, mechanical, electrical, fire protection system installations, and asbestos removal. The category’s major components consist of building, electrical, plumbing, and mechanical permits.

A 10-year history of permit revenues follows:

*Other includes dog licenses, parking, zoning, right-of-way, raffle, rental inspections, gas and fire prevention permits.

FINES AND FORFEITURES

This revenue category is used to account for court and parking fines. The court system has guidelines for setting case-related fines, while City Code sets the rates for parking fines. The Clerk of the Circuit Court collects court fines and submits receipts to the City monthly, while parking fines are paid directly to the Department of Finance. Effective October 2018, the City implemented the following parking fine structure:

*Ordinance #18-09 was adopted October 2018 to amend Sections 11162, 11-165 and 11-167 of Chapter 11, Article VI of the Code of the City of Williamsburg regarding Parking Fines. If payment for any ticket is made after 14 days of issuance, the fine for the ticket shall increase.

Revenue collections for fines and forfeitures over the last 10 fiscal years are as follows:

REVENUE FROM USE OF MONEY AND PROPERTY

This revenue classification includes interest earnings on surplus funds, rental income from City-owned properties, and sale of surplus vehicles and equipment. Interest earnings reported here is reported in the Capital Improvement Plan Fund, as Utility Fund revenues are highlighted in the budget section, Budget Summaries. Rental income includes various rental properties, including the Community Building user fees. The base rate for a weekday is $125/3-hour minimum and $300 for the weekend.

Revenue collections from use of money and property over the last 10 fiscal years are presented below:

A breakdown of rental income from properties over the last 10 fiscal years is presented below:

*Includes Triangle Building Commercial rent and houses on Strawberry Plains Road and Scotland Street.

CHARGES FOR SERVICES

The City uses this revenue classification to account for various revenue sources requiring charges. Minor amounts are included under Sheriff’s fees and Commonwealth Attorney’s fees, of which the City has no control. Also included are charges for maintenance of highways, streets, and sidewalks, which is used for billing special mowing or trash pickup and are minimal in amount. Charges for Planning & Community Development include minor amounts for maps and surveys, with the largest dollars attributable to sales of Cedar Grove Cemetery lots and grave openings. The largest item under this category is Charges for Parks & Recreation. City Code authorizes the Recreation Department to set and collect charges for programs and activities for use of its facilities and services.

Charges for Services collected over the past 10 years are shown below:

Parks & Recreation fees for the last 10 fiscal years are highlighted in detail below:

*Pool service at Quarterpath contracted out to a vendor in FY13 so no fees collected. The pool was completely filled in FY15.

Cemetery lot sales and grave opening fees over the last 10 years are as follows:

EMERGENCY MEDICAL TRANSPORT

As of July 1, 2005, the City began a program of billing health insurance providers for emergency medical transportation services. Receipts over the last 10 years are as follows:

REVENUE FROM THE COMMONWEALTH

Monies received from the Commonwealth of Virginia are classified as either Non-Categorical or Categorical aid. Non-Categorical revenues are received quarterly according to state code, are not billed or itemized by the City or any constitutional officer, and are not designated to be used for any specific purpose. These are directly deposited in the General Fund and used to pay for overall operations. Categorical aid must be spent on specific purposes. In the case of constitutional officers, expenditures are itemized and sent to the Commonwealth for reimbursement, based on various formulas provided by state code.

NON-CATEGORICAL AID

1. ROLLING STOCK TAXES - The State Corporation Commission determines the assessed value of “Certified Motor Vehicle Carriers,” primarily bus companies, and assesses a property tax at the rate of $1 per $100 value. These revenues are distributed QUARTERLY to the localities based on the miles the vehicles travel throughout the localities based on reports submitted from the carriers.

2. RENTAL CAR TAXES - Payments received from the Commonwealth are based on rental car taxes collected by rental companies within each jurisdiction. A 4% rental car tax is required to be assessed on all rental vehicles. Rental companies submit the taxes monthly to the Department of Motor Vehicles with a report by locality. The Commonwealth distributes these funds monthly to localities.

3. GRANTOR’S TAX - The Clerk of the Circuit Court collects additional recording fees for this purpose, details monthly activity, and deposits these receipts in a state account. Activity is separated at the courthouse for deeds relating to Williamsburg or James City County. Funds are distributed quarterly by the Commonwealth, from a $10 million fund [$40 million per year] to localities based on their share of overall grantor tax collections in the Commonwealth.

Non-Categorical Aid received over the last 10 fiscal years is as follows:

CATEGORICAL AID

1. SHARED EXPENSES - Constitutional offices included as City departments/operations with reimbursements provided, in part, by the Commonwealth of Virginia.

a. SHERIFF - This is a joint activity shared with James City County. The state refunds approximately 100% of state-approved salaries and operating costs of this department. However, since the City now is part of the Virginia Peninsula Regional Jail Authority, the Sheriff now provides only courtroom security and prisoner transfer activities. Jail staffing at the Courthouse has been significantly reduced, as many former employees now work for the Authority. Salary supplements are not reimbursed by the state.

b. COMMISSIONER OF THE REVENUE - State code provides for reimbursements to the City at 50% of salaries, fringe benefits, and a minor portion of operating expenses. Any constitutional officer can make special requests for payment from the Compensation Board for additional consideration. For the City’s Annual Comprehensive Financial Report dated June 30, 2021, total reimbursements were 21.1% of expenditures.

c. TREASURER - This is also a joint activity shared with James City County. The state reimburses the City ⅔ of salary, fringe benefits, and operating costs for the Deputy Treasurer, whose office is in the Municipal Building. The City, in turn, bills James City County 25% of the non-reimbursed amount annually. In the City’s Annual Comprehensive Financial Report, only the State reimbursed monies are classified as Categorical Aid. Reimbursements received from James City County are classified as credits to the expenditures in the Treasurer Department 1213.

d. MEDICAL EXAMINER - Reimbursed at $30 per examination.

e. REGISTRAR/ELECTORAL BOARD - For FY21, salaries were reimbursed by the state at 69.04% for the Registrar and 81.06% for the Electoral Board members. No reimbursements are made for fringe benefits or operating expenditures. The Department of Finance files for reimbursement to the state Electoral Board annually.

2. WELFARE - Pertaining to the City’s General Fund, only minor amounts of reimbursements are accounted for here. All of the City’s Human Services programs are accounted for as a special revenue fund and is included in the City’s Annual Comprehensive Financial Report in the Virginia Public Assistance Fund.

3. EDUCATION - State Sales Tax for Education - The governor distributes 1% of statewide sales tax receipts to every school district based on state census figures provided for school-age population. This is adjusted with each triennial census performed by the joint school system and verified by the localities.

4. 599 FUNDS - Each locality in the Commonwealth is eligible to receive a percentage of the total amount to be distributed equal to the percentage of the total adjusted crime index attributable to each locality as determined by the Department of Criminal Justice Services. The City must notify the department prior to July 1 each year that its law enforcement personnel have complied with minimum training standards as provided for by State Code. These distributions are made quarterly.

5. OTHER CATEGORICAL AID - See the next section for a detailed description.

Categorical Aid received over the last 10 fiscal years is as follows:

OTHER CATEGORICAL AID

Other aid received from the Commonwealth and designated for specific use includes:

1. ARTS COMMISSION - Grant funds are applied for by the City and James City County to the Commonwealth for the Local Government Challenge Grant Program. Funds are received directly by each locality. James City County reimburses the City for the state portion, and also an additional amount each year as provided for during the annual budget process. Since Fiscal Year 1998, each locality has received the $5,000 state maximum allowed under this grant.

2. STREET AND HIGHWAY MAINTENANCE - The City is reimbursed quarterly by the Commonwealth according to lane miles of streets within its boundaries. For FY22, reimbursements for principal/ minor arterial roads are $22,524.22 per lane mile, while collector/local streets are at a rate of $13,224.70 per lane mile. Lane miles used to calculate reimbursement change only when additional roads are built in the City. Total revenue for FY22 will be $1,955,097 based on peak-hour moving lane miles of state arterial roads in the City of 39.70 miles and local streets of 80.22 lane miles. Payment rates change periodically and are at the discretion of the Commonwealth of Virginia.

3. EMERGENCY SERVICES - Each year funds are received for Radiological Emergency Preparedness. These funds support the activities of state agencies and certain local governments in establishing, maintaining, and operating emergency plans, programs and capabilities to deal with nuclear accidents8. Annual training exercises are performed, within program guidelines, and are coordinated throughout the geographic area with other local governments and Dominion Energy. Amounts received each year are based on the projected annual cost of administering the state and local government programs for the power stations.

4. FIRE PROGRAMS - This is a special appropriation to localities to be used for fire service training, training facilities, and fire-fighting equipment or vehicles. Localities must provide detailed expenditure reports annually to qualify for these funds. This revenue is reported in the Capital Improvement Plan (Sales Tax) Fund.

8 VA of Emergency Services - Funding to State and Local Government Agencies and Supporting Organizations, June, 1992

5. EMS FUNDS - FOUR FOR LIFE - State Code provides an additional $4 per year to be charged and collected when registrations for pickups, panel trucks, and motor vehicles are made at the Department of Motor Vehicles. These monies are paid into the state treasury to be used for emergency medical service purposes. Twenty-six percent of these funds are returned to the localities where the registrations were made. It supports volunteer and paid personnel training, equipment, and supplies for emergency purposes. This revenue is reported in the Capital Improvement Plan (Sales Tax) Fund.

6. LITTER CONTROL - The City receives this annual grant from the Department of Waste Management to aid in litter control. Monies are used for litter prevention, elimination, and control. The grant must be applied for each year, and an accounting is made each year to verify that funds are spent appropriately. Amounts vary each year depending on available funds and local program requirements.

Other Categorical Aid received over the last 10 fiscal years is as follows:

REVENUE FROM THE FEDERAL GOVERNMENT

The City’s Annual Comprehensive Financial Report itemizes federal receipts on the Schedule of Federal Awards, according to the Catalog of Federal Domestic Assistance catalog numbers. Human Services programs account, by far, for the majority of the City’s federal funds. These programs are accounted for in the Public Assistance Fund. These programs are highlighted:

1. LOCAL LAW ENFORCEMENT BLOCK GRANT - The City must apply for these funds each year through the Department of Criminal Justice Services. An interest-bearing checking account is maintained for this grant, and detailed quarterly reports must be filed until the funds are spent. During FY 2021, the City received $4,552 from DCJS for bulletproof vests, $25,995 from DCJS for Coronavirus Emergency Supplemental, and $20,680 DMV Federal Grant for personnel costs.

2. DEPARTMENT OF EMERGENCY SERVICES - These funds are administered by the Federal Emergency Management Agency (FEMA). The City of Virginia Beach acts as a fiscal agent for this program. Funds are received for disaster assistance and hurricane preparedness and, more specifically, are intended to supplement the cost of deploying the City’s Emergency Management team in accordance with FEMA requirements during natural disasters. During FY14, FY15, and FY16, the City received $3,530, $115, and $75 from FEMA for drills and training. No funds were received in FY17, FY18, and FY19. During FY20, $2,191 was received for Hurricane Dorian. In FY 2021, the City received a $15,000 Local Emergency Management Performance Grant (LEMPG).

3. DEPARTMENT OF TRANSPORTATION - These federal revenue-sharing funds are used for street planning and construction. During FY20, $312,356 in federal funds was received for the Ironbound Road Improvements and Monticello Multiuse Trail. During FY21, $404,870 in federal funds was received for the Capitol Landing Road Improvements, Monticello Multiuse Trail, and the Francis Street Sidewalk/trail.

DEPARTMENT OF TREASURY - The City received $2,609,358 of Coronavirus Relief Funds in FY20/FY21. In FY21, the City received $7,757,512; in FY22, $1,452,319.50 of State and Local Fiscal Recovery Funds (SLFRF) under the American Rescue Plan Act. The final tranche of $9,209,831.50 of SLFRF is slated was received at the end of FY22 and beginning of FY23.

REVENUE FROM WILLIAM & MARY

The City provides fire and emergency medical services to William & Mary. As a state agency, the university is exempt from local taxation. In light of this, the university committed to providing financial support to the City in the amount of $165,000 per year to partially defray the costs of providing these essential services on campus.

POTENTIAL REVENUE SERVICES

State Code Section 58.1-3840 allows cities or towns to charge excise taxes on admissions, which the City does not impose.

EXPENDITURE CLASSIFICATIONS

51000 SALARIES & WAGES

51001 Salaries

Compensation for all full-time employees who hold permanent positions.

51002 Salaries Overtime

Compensation for overtime and holiday pay for all eligible employees in accordance with the Personnel Manual.

51003 Salaries, Part-Time Employees

Compensation for all part-time employees (less than 40 hours per week) who are paid on an hourly basis and are not eligible for all employee benefits. (See Personnel Manual)

51005 Salaries - Temporary Compensation for employees who are working on a temporary basis. (See Personnel Manual)

51006 Discretionary Leave

Compensation for police, fire, or water plant personnel who must work on stated holidays. (See Personnel Manual)

51008 Traffic Control

Compensation for police department personnel who work extra hours for traffic control purposes.

51009 Off-Duty Police Officers

Compensation for police personnel hired by outside establishments after regular working hours. (City is reimbursed by contracting party.)

52000 FRINGE BENEFITS

52001 FICA

Employer’s share of Social Security Taxes.

52002

Virginia Retirement System (VRS)

Cost of contributions to Virginia Retirement System for all full-time employees. VRS enrollment is mandatory for all full-time employees and paid as a percentage of base salary.

52004 Dental

Costs for employee dental reimbursement program.

52005

Hospitalization

City’s cost for medical benefit package premiums, not including dental.

52006 Group Life Insurance

City’s cost for VRS group life insurance policy.

52009

Unemployment Insurance Costs for unemployment insurance.

52010 Worker’s Compensation

Costs for worker’s compensation insurance.

52012

Clothing Allowance

Costs associated with purchase of clothing by designated personnel.

52013 Education Allowance

Costs for tuition assistance.

EXPENDITURE CLASSIFICATIONS (CONTINUED)

52016 Training

Costs associated with training fire, police, and water plant personnel.

52021 Cleaning Allowance

Costs associated with cleaning of uniforms and clothing.

53000 PROFESSIONAL SERVICES

53001 Professional Health Services

Costs associated with medical services such as physicals for certain employees.

53002 Professional Services - Other

Costs for legal, financial, engineering, and other specialized professional services.

53004 Repair and Maintenance Costs for services for repair or maintenance of city equipment and structures.

53004-1

53006 Printing

Costs associated with the printing of forms, documents, manuals, etc.

53007 Advertising

Costs for classified and legal advertisements.

53008 Laundry and Dry Cleaning

Costs associated with uniform rental.

53009 Purchase of Services

Costs for purchasing of services and supplies from other governmental agencies. Does not include joint activities.

53013 Jurors, Commissioners, Witnesses

Costs associated with court trials and legal disputes.

53031 Garbage Contract

Costs for garbage pick-up and disposal.

53032 HRSD

Costs for treatment of raw sewage by Hampton Roads Sanitation District.

53033 Exterminating Costs for extermination contracts for city-owned buildings.

53099 Detective Funds

Costs associated with police work.

EXPENDITURE CLASSIFICATIONS (CONTINUED)

55000 PURCHASE OF GOODS & SERVICES

55101 Electricity

Costs of electricity (Dominion Energy).

55102 Heating Fuel

Purchase of natural gas and heating oil.

55103 Water and Sewer

Costs of water and sewer services.

55201 Postage

Stamps, stamped envelopes, postage meter costs, permit fees, etc.

55203 Telecommunications

Costs incurred for landline, cellular phone, and pager service.

55204 Radios

Cost of operating citywide radio systems.

55205 Emergency “911”

Costs of operating emergency lines for the dispatch operation.

55301 Boiler Insurance

Costs of insuring heating plants, generators, and other mechanical equipment.

55302 Fire Insurance

Costs of insuring buildings and contents against fire.

55305 Motor Vehicle Insurance

Costs of insurance for motor vehicles.

55306

Surety Bonds

Costs for surety bonds for certain city personnel.

55307

Public Officials Liability

Costs of insuring certain public officials against suits, etc.

55308

General Liability Insurance

Cost of insuring the City against certain accidents, etc.

55401

Office Supplies

Costs of office supplies such as envelopes, pens, pencils, paper, forms, etc. used in everyday office operations.

55402

Food and Food Service Supplies

Costs of providing miscellaneous food or supplies at Fire Station.

55403

Agricultural Supplies

Costs for care and treatment of plants, lawns, landscaping, including small tools.

55404

Material and Lab Supplies

Costs for purchasing medical and laboratory supplies for appropriate city departments.

55405

Laundry, Housekeeping and Janitorial Supplies

Costs of custodial and housekeeping supplies, including light bulbs.

55406

Linen Supplies

Costs of linens used in Fire Department.

55407

Repair and Maintenance Supplies

Costs of building material supplies, paint, electrical, and plumbing supplies.

EXPENDITURE CLASSIFICATIONS (CONTINUED)

55408 Vehicle and Powered Equipment Supplies

Supplies for cars, trucks, heavy equipment, etc. used by City Shop.

55408-1 Cars and Trucks

2 Tires and Tubes

3 Gas and Oil for Vehicles

4 Powered Equipment - Light and Heavy

5 Sign and Street Marking Supplies

6 Generator Fuel

55409 Police Supplies

Costs of items such as guns, ammunition, flashlights, etc.

55410 Uniforms and Wearing Apparel

Costs for uniforms, protective clothing, boots, overalls, and other items or working apparel provided to employees.

55411 Books and Subscriptions

Costs for professional periodicals, books, and publications.

55412 Recreation Supplies

Costs for supplies used for Recreation Department programs.

55413 Other Operating Supplies

Costs for chemicals and other supplies not covered in other accounts.

55414 Merchandise for Resale

Costs of vending machine merchandise.

55415 Fire Prevention Materials

Costs of materials used by Fire Department for fire prevention.

55416 Pool Supplies

Costs of supplies for operation of Quarterpath Pool.

55417 Water Meters

Costs of purchasing water meters for the Utility Fund.

55418 Litter Control

Costs associated with litter pickup.

55501 Travel Expense

Mileage reimbursement at 56¢/mile for approved use of private vehicles for job-related travel.

55504 Travel (Conferences and Conventions)

Costs for lodging, transportation, registration fees, and materials. All travel must have prior department head approval.

55602 Colonial Behavioral Health (formerly Colonial Services Board)

Costs of City’s contribution to community program.

55604 Contributions to Other Agencies

Donations to outside organizations approved by City Council.

55801 Dues and Memberships

Costs for dues and memberships in professional organizations.

EXPENDITURE CLASSIFICATIONS (CONTINUED)

55805 Other Costs (non-recurring) not budgeted under other accounts.

55838 Principal Repayment of long-term debt principal.

55839 Interest Interest payments on long-term debt.

55899 Joint Activity Payments to James City County for jointly operated departments and agencies. 57000

58001 Lease and Rental of Equipment

Cost for temporary rental or lease of equipment (no leasepurchase agreements).

58002 Lease and Rental of Buildings Costs for rental or lease of office or storage space.

FUNDING RELATIONSHIPS

CONSTITUTIONAL OFFICERS

Generally COMMISSIONER OF THE REVENUE

Compensation Board. The state pays a portion of salary, benefits, and some operating costs. The City pays salary supplements and, in some cases, fringe benefits. Operating salaries for these officers are approved by the state.

TREASURER

The City provides office space for this officer and staff. The state reimburses the City for 50% of salary, fringes (except healthcare), and some operating expenses. The reimbursable portion of the commissioner’s salary is based on the 1980 salary amount divided in half plus any and all increases in pay since that date. The state pays 50% of two full-time positions allowed based on population. A salary supplement is provided by the City. The state reimburses half the employer cost of VRS (Retirement), FICA, and Group Life insurance. The balance of fringes is paid by the City. The staff participates in all City employee programs (e.g., health insurance, deferred and workers’ compensation), including the Pay Plan.

The City, state, and James City County share in the local cost of the Treasurer. The state reimburses 88% of stateapproved salary, 100% of FICA match, and 46% of Virginia Retirement System costs. JCC bills the City for a percentage of the non-reimbursable costs based on population. Office space is provided by both localities. The state reimburses the City for ⅔ of salary and fringes (except healthcare) for the City deputy treasurer, whose office is located in the Municipal Building. The City bills JCC for 25% of the nonreimbursable costs for salary and fringes associated with the City deputy treasurer position for work associated with Williamsburg/James City County Schools.

COMMONWEALTH ATTORNEY

JCC, State

The Compensation Board sets the salaries for the Commonwealth Attorney, four assistants, and four full-time support staff. All positions receive a salary supplement, ranging from 1.5% to 61%, paid by the City and James City County based on population each year. In addition, the Victim’s Assistance program consists of three grant positions, which are supplemented locally. The balance of any fringes in excess of the amount provided by the state is paid by the City and JCC based on population per the courthouse agreement.

SHERIFF’S DEPARTMENT JCC, State

VOTER REGISTRAR

Board of Elections, State

CIRCUIT COURT

The joint Williamsburg/James City County Sheriff is responsible for courtroom security and serving civil warrants but no longer handles jail facilities since the City became part of the Virginia Peninsula Regional Jail Authority. City and James City County share local cost on a population formula as provided in the City/County Joint Courthouse Agreement. Payroll and operating expenses have been administered by JCC since Jan. 1, 1998. The state compensation board will reimburse the county for state-approved salaries, benefits, and some operating expenses. Salary supplements and a portion of unreimbursed operating expenses are shared locally based on the Courthouse Agreement. Sheriff’s employees participate in the JCC’s worker compensation, health insurance, and Virginia Retirement System programs.

The state pays the majority of the registrar’s salary. For FY 2023, that rate was 77.88%. Costs associated with one full-time employee, fringe benefits, and operating costs are paid by the City. Staff participates in the City’s workers’ compensation, health insurance, and other employee benefit programs. The City provides accounting and payroll services.

The City and James City County share in the cost of the judge’s secretary, legal assistant, jurors, capital outlay, and operating expenses of this office. The judge’s salary is paid by the state. All courthouse personnel and operating costs are the responsibility of the local government and are split between the City and county based on population year.

GENERAL

The City and James City County share in the cost of operating expenses and capital outlay for this office based on the Courthouse Agreement. The judge’s salary is paid by the state.

(HON. RICHARD H. RIZK, CHIEF JUDGE) State

DISTRICT COURT (HON. STEPHANIE M. REVERE, CHIEF JUDGE)

JUVENILE AND DOMESTIC RELATIONS COURT (HON. BRIAN J. SMALLS)

JCC, State

NINTH DISTRICT COURT SERVICES UNIT

Juvenile Probation Office State, JCC, York, Charles City, King William, King & Queen, Mathews, Gloucester, New Kent, Middlesex, Poquoson

COLONIAL GROUP HOME COMMISSION

JCC, York, and Gloucester counties, State Dept of Youth & Family Svcs.

VIRGINIA PENINSULA REGIONAL JAIL AUTHORITY

JCC, York County, Poquoson, Dept. of Corrections

MIDDLE PENINSULA JUVENILE DETENTION COMMISSION

18 Localities, State-Dept of Juvenile Justice

The City and James City County share in the cost of operating expenses for this office based on the Courthouse Agreement. The Judge’s salary is paid by the state.

Salaries and fringes for this office are paid by the state. Local operating costs are shared between the City and James City County. For the District office, the City pays ¹⁄₁₁ of the operating costs. In addition, the City pays actual juvenile detention expenses for the Merrimac Center through the Middle Peninsula Juvenile Detention Commission for City cases.

This Commission is funded through state block grant, and member localities share operating costs based on population. Programs include Community Supervision and Psychological Services.

The City shares in the cost of operating this authority. VPRJA operates a regional jail on Route 143 in lower James City County. The City pays its share based on the number of prisoners held for crimes committed in the City.

This commission operates the Merrimac Center, a 48-bed center, providing secure detention for juveniles for localities in the 9th and 15th District Court Service Units. City pays its share based on the number of juveniles held for offenses committed in the City.

COLONIAL COMMUNITY CORRECTIONS

JCC, York County, Poquoson, New Kent Co., Charles City Co., and State

HEALTH DISTRICT

State, Newport News, JCC, York County, and Poquoson

COLONIAL BEHAVIORAL HEALTH

State funds, JCC, York County, Poquoson Federal Funds, fee revenues

DEPARTMENT OF HUMAN SERVICES

State, Fed Dept. of Health/ Human Services

WILLIAMSBURGJAMES CITY COUNTY PUBLIC SCHOOLS

This organization provides alternatives to incarceration to persons awaiting trial, pre-trial, post-trial and re-entry services, and substance abuse counseling to offenders.

The City’s contribution is based on a funding formula that apportions local share among district jurisdictions. Some monies are refunded to City based on generated revenues each year.

Colonial Behavioral Health is funded at the discretion of City Council. The funding request is based on population and usage.

Approximately 70% of personnel and operating costs are reimbursed by the state and federal governments.

Local funding share is apportioned between the City and James City County based on the Joint Schools Agreement, as amended in 1991, 1996, 2001, 2007, and 2012. The contract was being amended in FY 2022. Historically state support has been approximately 30% of total school system cost and based on a formula and General Assembly appropriations. Federal funding is received and largely directed to categorical programs and received on a costreimbursement basis.

WILLIAMSBURG REGIONAL LIBRARY

JCC, York County, State funds and generated revenues

AVALON CENTER FOR WOMEN AND CHILDREN

United Way, State Housing Dept., JCC, York County, private donations

FOSTER GRANDPARENTS PROGRAM

Hampton, JCC, York County, Newport News, Federal funds

PENINSULA AGENCY ON AGING

State and Federal funds, Newport News, Hampton, Poquoson, JCC, York County, private donations

HISTORICAL TRIANGLE SENIOR CENTER

JCC, York Counties

City, James City County, and York County cost-sharing is governed by the 5th Amended Contract for Library Services based on circulation. Each jurisdiction pays for the capital costs associated with the library buildings located therein. The state contributes approximately 5% of total operating costs on a formula basis through the Library of Virginia.

This organization is funded at the discretion of the City Council, per the advice of the Human Services Review Committee.

The program is funded at the discretion of the City Council per the advice of Human Services Review Committee.

The organization is funded at the discretion of the City Council per the advice of Human Services Review Committee.

This organization is funded at the discretion of the City Council per the advice of Human Services Review Committee.

COMMUNITY ACTION AGENCY CENTER

JCC, donations, State/Fed. grants

CHIP OF VIRGINIA

Public/private partnershippartner agencies, corporations, foundations, individuals, local gov’ts

HOSPICE OF WILLIAMSBURG

United Way, private donations

WILLIAMSBURG AREA

TRANSPORTATION AUTHORITY

JCC, York County, State funds

COLONIAL WILLIAMSBURG FOUNDATION

Endowments, generated revenue, private contributions

The agency is funded at the discretion of the City Council per the advice of Human Services Review Committee.

The organization is funded at the discretion of the City Council per the advice of Human Services Review Committee.

The organization is funded at the discretion of the City Council per the advice of Human Services Review Committee.

The authority is funded at discretion of City Council. Agency administers the regional transit system serving residents, visitors, and students through fixed-routes and services disabled in the City, James City County, and the Bruton District of York County.

Funded at the discretion of the Council based on an annual application for investment in projects and events to benefit residents and visitors and thereby generate revenue through taxes on the goods and services provided.

THE WILLIAMSBURG TOURISM COUNCIL

Williamsburg, JCC, York County

THE GREATER WILLIAMSBURG CHAMBER OF COMMERCE

Williamsburg, JCC, York County

HISTORIC TRIANGLE RECREATIONAL FACILITIES AUTHORITY (HTRFA)

Williamsburg, JCC, York County

HAMPTON ROADS PLANNING DISTRICT COMMISSION & METROPOLITAN PLANNING ORGANIZATION (MPO)

JCC, York County, Newport News, Poquoson, Hampton, Gloucester, Tidewater jurisdictions, State and Federal funds

Funded by sales and use tax as prescribed by State Code 58.1-603.2. Fifty percent of the revenues collected are distributed to localities, and by agreement, the localities appropriate at least $126,000 annually to the Williamsburg Tourism Council to promote the area and regional events.

Funded by sales and use tax as prescribed by State Code 58.1-603.2. Fifty percent of the revenues collected are distributed to localities, and by agreement, the localities appropriate at least $402,000 annually to the Greater Williamsburg Chamber of Commerce to advocate, collaborate and create an environment in which business can grow and succeed.

Funded by sales and use tax as prescribed by State Code 58.1-603.2. Fifty percent of the revenues collected are distributed to localities, and by agreement, the localities appropriate at least $1,450,000 annually to the HTRFA to oversee the construction and management of regional recreational facilities as part of the redevelopment of 160+ acres alongside the Colonial Williamsburg Visitor Center.

City share is based on per capita membership assessment each year.

HAMPTON ROADS ECONOMIC DEVELOPMENT ALLIANCE/ PENINSULA COUNCIL FOR WORKFORCE DEVELOPMENT

Hampton, Newport News, JCC, York County, Gloucester, Poquoson

VIRGINIA PENINSULA COMMUNITY COLLEGE

State, Newport News, JCC, Poquoson, York County, Hampton

COLONIAL SOIL AND WATER CONSERVATION DISTRICT

State, JCC, York County

WILLIAMSBURG AREA ARTS COMMISSION

JCC, State funds

ANIMAL CONTROL

These organizations are funded at discretion of City Council.

HERITAGE HUMANE SOCIETY

JCC, York County, private donations

Funded at discretion of City Council, based on population formula for improvements to parking and site, not including buildings.

This is a state agency and is primarily funded by the state. Historically, the CSWCD member jurisdictions have shared in the cost of funding one position.

The commision is funded at discretion of Council. Agency recommends funding to over 30 groups and monitors how arts groups spend funds. James City County pays half by agreement.

The City pays James City County to provide animal control services under a 1993 inter-local agreement.

The organization is funded at discretion of City Council.

VIRGINIA PENINSULAS PUBLIC SERVICE AUTHORITY

JCC, York County, Hampton, Newport News, Poquoson, and Middle Peninsula jurisdictions

JAMESTOWNYORKTOWN FOUNDATION

JCC, York County, State grants, private donations, admission fees

COLONIAL COURT APPOINTED SPECIAL ADVOCATES (CASA)

JCC, York County, State grants, private donations

WILLIAMSBURG AIDS NETWORK

Private donations

WILLIAMSBURG EXTENSION SERVICES State

The City share is based on a budget formula adopted by the VPPSA Board of Directors each year.

WILLIAMSBURG AREA MEDICAL ASSISTANCE CORPORATION (WAMAC)

JCC, State

The foundation is funded at discretion of City Council.

CASA is funded at discretion of City Council per advice of Human Services Review Committee.

This organization is funded at discretion of City Council per advice of Human Services Review Committee.

This program is funded at discretion of City Council per advice of Human Services Review Committee.

This organization is funded at discretion of City Council per advice of Human Services Review Committee.

FUNDING STRUCTURE

The City’s accounting system is organized on the basis of funds and groups of accounts, each of which is considered to be a separate accounting entity. The operations of each fund are accounted for by providing a separate set of self-balancing accounts, which comprise its assets, liabilities, fund equity, revenues, and expenditures or expenses. The various funds are grouped in the financial statements as follows:

GOVERNMENTAL FUNDS account for the expendable financial resources, other than those accounted for in proprietary or fiduciary funds. The Governmental Fund measurement focuses on determining financial position and changes in financial position, rather than on determining net income as would apply to a commercial enterprise.

GENERAL FUND – This fund accounts for all revenues and expenditures of the City that are not accounted for in other funds. Revenues are derived from general property taxes, other local taxes, licenses and permits, and revenues from other governmental units.

CAPITAL IMPROVEMENT PLAN (SALES TAX)

FUND – This fund accounts for scheduled major capital improvements for the upcoming year. Revenues are traditionally derived from the 1% Sales Tax monies collected monthly at the state level and interest earnings.

TOURISM FUND – This fund is a special revenue fund used to account for tourism tax revenue (1% Historic Triangle regional sales tax and $2 lodging tax). The expenditures in the Tourism Fund are for the purpose of funding tourism development projects.

PUBLIC ASSISTANCE FUND – This fund accounts for the activities of the City’s Human Services Department. The majority of funding is provided by the federal and state

government for social service programs. The remainder of its funding is provided by the City as an annual contribution from the General Fund.

AMERICAN RESCUE PLAN ACT FUND – This fund accounts for the activities funded by the State and Local Fiscal Recovery Funds provided by the federal government under the American Rescue Plan Act to respond to the impacts of the COVID-19 pandemic. This fund also includes ARPA funding for Municipal Utility Relief Funding and ARPA Tourism funding passed through from the Commonwealth of Virginia.

PROPRIETARY FUNDS account for operations that are financed in a manner similar to private business enterprises. The Proprietary Fund measurement focus is upon the determination of net income, financial position, and cash flows. Enterprise funds account for the financing of services to the general public where all or most of the operating expenses involved are recovered in the form of charges to users of such services. The Utility Fund, consisting of the operations for water and sewer services, is the City’s only Enterprise Fund.

FIDUCIARY FUNDS (Trust, Custodial and Agency Funds) account for assets held by the City unit in a trustee capacity or as an agent or custodian for individuals, private organizations, other governmental units, or other funds. Agency Funds utilize the accrual basis of accounting and do not have a measurement focus. Agency Funds include the Williamsburg Regional Library, the Williamsburg Tricentennial Fund, Economic Development Authority, the Quarterpath Community Development Authority, the Farmers Market, and the Special Welfare Fund.

BUDGETS AND BUDGETARY ACCOUNTING

Formal budgetary integration is employed as a management control device during the year for the General Fund, Capital Improvement Plan Fund, Tourism Fund, Utility Fund, Quarterpath Community Development Authority Fund and Public Assistance Fund. Annual operating budgets are adopted by ordinances and resolutions passed by the City Council for those funds. Budgets are prepared on the same basis of accounting used for financial reporting purposes. The City does not integrate the use of encumbrance accounting in any of its funds. The original budgets and revisions, if any, are authorized at the department level by City Council. The city manager has the authority to transfer funds within the departments, so long as the total appropriation for a department is not adjusted. All appropriations for operating budgets lapse at year-end to the extent that they have been fully expended. As capital projects can be multi-year, funds appropriated by City Council can carry over to future years for projects not completed each year, at the discretion of the city manager.

BASIS OF ACCOUNTING

GOVERNMENTAL FUNDS - Governmental Funds utilize the modified accrual basis of accounting under which revenues and related assets are recorded when measurable and available to finance operations during the year. Accordingly, real and personal property taxes are recorded as revenues and receivables when billed, net of allowances for uncollectible amounts. Property taxes not collected within 45 days after year-end are reflected as deferred revenues uncollected property taxes. Sales and utility taxes, which are collected by the state or utilities and subsequently remitted to the City, are recognized as revenues and receivables upon collection by the State or utility, which is generally in the

month preceding receipt by the City. Licenses, permits, fines, and rents are recorded as revenues when received. Intergovernmental revenues, consisting primarily of federal, state, and other grants to fund specific expenditures, are recognized when earned or at the time of the specific expenditure. Expenditures are recorded as the related fund liabilities are incurred.

PROPRIETARY FUNDS - The accrual basis of accounting is used for the Utility Fund. Under the accrual method, revenues are recognized in the accounting period in which they are earned, while expenses are recognized in the accounting period in which the related liability is incurred.

FIDUCIARY FUNDS - The accrual basis of accounting is used for all Fiduciary Funds and they do not have a measurement focus.

BASIS OF ACCOUNTING VS. BASIS OF BUDGETING

Budgets are prepared on the same basis of accounting used for financial reporting purposes (Generally Accepted Accounting Principles). There are some instances wherein the generally accepted accounting principles used for financial reporting purposes will differ from those used in budget preparation. Under GAAP reporting requirements, changes in the fair market value of the City’s investments are treated as adjustments to revenue at fiscal year-end, and those effects are not considered (or known) in the budget process. The other difference is the annual adjustment necessary to reflect the value of earned but unused vacation leave due to employees at fiscal year-end. Such amount would be paid upon an employee’s separation from the City but is not known or budgeted due to the unknown nature of employee’s use of vacation leave.

FUNDING STRUCTURE CHART

ALL FUNDS

GOVERNMENTAL FUNDS

PROPRIETARY FUND

FIDUCIARY FUND

UTILITY FUND

QUARTERPATH

COMMUNITY DEVELOPMENT AUTHORITY FUND

GENERAL FUND

CAPITAL IMPROVEMENT FUND

SPECIAL REVENUE FUND

TOURISM FUND

PUBLIC ASSISTANCE FUNDS

AMERICAN RESCUE PLAN FUND (ARPA)

BUDGET POLICIES

A. FINANCIAL PLANNING POLICIES

1. Balanced Budgets:

a. The general operating fund (General Fund) and the special local option sales tax fund (General Capital Improvement Plan, or CIP), Utility Fund operating fund, and the Utility Fund CIP are subject to the annual budget process.

b. All operating and capital fund budgets must be balanced. Total anticipated revenues plus fund balances or reserves brought forward must equal total estimated expenditures each year.

c. The Utility Fund (the City’s only Enterprise Fund type) will be self-supporting.

d. All budgets will be formulated and adopted in conformity with accounting principles generally accepted in the United States of America (US GAAP).

e. The budget process will include coordinating the development of the capital improvement budget with the development of the operating budget.

2. Long-Range Planning:

a. Budgets will be adopted annually, taking into consideration input from all organizational levels of the City. The Planning Commission will review current and future capital improvement projects and make recommendations to staff for input to the annual budget document.

b. The long-term revenue, expenditure, and service implications of continuing or ending existing programs or adding new programs, services, and debt will be considered while formulating all budgets annually.

c. The City will assess the condition of all major capital assets, including buildings, roads, bridges, water and sewer lines, vehicles, and equipment annually.

d. To estimate the City’s future financial position, the long-term impact of operating and capital spending will be analyzed five years forward, concurrent with the formulation of all budgets.

e. The General Fund will maintain a minimum of 35% of total operating revenues as its unassigned fund balance.

f. Fund Balance of the General Fund shall be used only for emergencies, non-recurring expenditures, or major capital purchases that cannot be accommodated through current year savings.

B. REVENUE POLICIES

1. Revenue Diversification:

The City will strive to maintain a diversified and stable revenue system to protect the City from short-run fluctuations in any one revenue source and ensure its ability to provide ongoing services.

a. The City will identify all revenue and grant options available to the City each year.

b. All revenue collection rates, especially for real estate and personal property taxes, will be reviewed annually, and all efforts to maximize receipt of revenues due will be made by the Finance Department.

2. User Fees and Charges: Fees will be reviewed and updated on an ongoing basis to ensure that they keep pace with changes in the cost of living as well as changes in methods or levels of service delivery.

a. Rental of City properties – Charges will be reviewed annually and compared with market rates for comparable space or property in the community. The City will consider annual escalator clauses in multi-year rental contracts to take into effect the impact of increases in the cost of living.

b. Building permit and inspection fees will be reviewed annually.

c. Recreation program charges will be reviewed annually. In general, all efforts will be made to provide programs and activities at an affordable level for the residents of the Williamsburg area while still recovering a major portion of incidental costs of programs, not to include administrative costs or the use of facilities.

i. Charges for specialty classes such as yoga, aerobics, dance, dog obedience, etc. will be set at a level to encourage maximum participation, and also enable 75% to 80% of program receipts to be used to compensate instructors.

ii. Team sports participation fees will also be set to encourage maximum participation, with approximately 80% to 90% of charges being used to defray costs of officiating, prizes and awards, scorekeepers, and team pictures.

d. The City’s Utility Fund will be self-supporting. Water and Sewer charges will be reviewed annually and set at levels which fully cover the total direct and indirect costs, including operations, capital outlay, and debt service.

3. Use of One-Time or Limited-Time Revenues:

a. To minimize disruptive effects on services due to non-recurrence of these sources, the City will not use one-time revenues to fund operating expenditures.

4. Real Estate Review Policy – See Section H

C. EXPENDITURE POLICIES

1. Operating/Capital Expenditure Accountability:

a. The City will finance all current expenditures with current revenues. The City will not shortterm borrow to meet cash-flow needs.

b. Future operating costs associated with new capital improvements will be projected and included in operating budgets.

c. Capital Improvement Plan budgets will provide for adequate maintenance of capital equipment and facilities and for their orderly replacement.

d. The budgets for all funds shall be controlled at the department level. Expenditures may not exceed total appropriations for any department without approval from the city manager.

e. All operating fund appropriations will lapse at fiscal year-end. Any encumbered appropriations at year-end may be re-appropriated by City Council in the subsequent year. Multi-year capital improvement projects may be carried forward in the subsequent year, at the discretion of the city manager.

f. The City will include contingency line items in the General Fund, General CIP, and Utility Fund CIP, not to exceed $200,000, to be administered by the city manager, to meet unanticipated expenditures of a non-recurring nature.

g. The City will maintain a budgetary control system to ensure adherence to the budget and will prepare and present to City Council monthly financial reports comparing actual revenues and expenditures with budgeted amounts.

D. DEBT POLICY

Revised policy adopted by City Council June 11, 2021

The City will maintain the following standards on general government debt to ensure a higher level of financial security than that afforded by meeting minimum state standards:

1. DEBT AS A PERCENTAGE OF ASSESSED VALUE – Outstanding debt divided by real estate assessed values as of the most recent Landbook.

2. DEBT SERVICE AS A PERCENTAGE OF GENERAL FUND OPERATING EXPENDITURES – Total debt service for general government divided by total General Fund Operating Expenditures. Actual is based on actual debt service for the most recent audit fiscal year divided by total General Fund operating expenditures for the same period. General Fund operating expenditures = operating expenditures plus transfers out less any one-time expenditures financed with non-recurring revenues, for example, Coronavirus Act Relief Funds.

3. 10-YEAR PAYOUT RATIO – Calculated by totaling principal payments of general government debt for the next 10 years and dividing by the current outstanding debt.  Other standards adhered to by the City of Williamsburg for General Government debt include the following:

1. A five-year Capital Improvements Plan (CIP) will be developed and updated annually, along with corresponding anticipated funding sources.

2. Capital Improvement Plan projects financed by issuing general obligation bonds or other longterm debt, including lease-purchase obligations, will be repaid within a period not to exceed the expected useful life of the improvement. In consideration of bond issue cost, bond issues shall be appropriately sized, preferably not less than $3 million. Several projects may be grouped in a single bond issue.

3. To maintain a predictable debt service burden, the City will give preference to debt that carries a fixed interest rate. However, consideration may be given to variable-rate debt. Conservative estimates will be used in budgeting variable rate debt service interest expense. Variable-rate debt will be limited to no more than 20% of total outstanding debt.

4. The City’s outstanding debt will be reviewed for opportunities to refinance when interest rate conditions are favorable for producing debt service savings. Generally, refunding will be considered if the present value savings on the refunding issue exceed 3% of the refunded principal or if the refunding/restructuring favorably enhances the City’s financial sustainability.

5. SEC requirements of continuing disclosure agreements for all bond issues will be complied with, including annual filings of audited financial statements to the Municipal Securities Rulemaking Board and all national rating agencies which have assigned a bond rating for the City.

E. INVESTMENT POLICY

In recognition of its fiduciary role in the management of all public funds entrusted to its care, it shall be the policy of the City that all investable balances be invested with the same care, skill, prudence, and diligence that a prudent and knowledgeable person would exercise when undertaking an enterprise of like character and aims. Further, it shall be the policy of the City that all investments and investment practices meet or exceed all statutes and guidelines governing the investment of public funds in Virginia, including the Investment of Public Funds Act of Virginia and the guidelines established by the State Treasury Board and the Governmental Accounting Standards Board.

Copies of the City’s comprehensive investment policy, including the objectives, allowable investments, quality, maturity restrictions, prohibited securities, and additional requirements, are available at the Department of Finance.

F. FUND BALANCE POLICY

(Adopted by City Council on June 9, 2011, amended June 9, 2022):

Sound financial management principles require that the City retains sufficient funds to provide a stable financial base at all times. Maintaining adequate fund balance levels is essential to mitigate risks (e.g., revenue shortfalls and unanticipated expenditures), ensure stable tax rates, and protect against reducing service levels. Fund balance provides resources during the time it takes to develop and implement a longer-term financial solution. Fund balance is also crucial in long-term financial planning and capital funding as credit markets carefully monitor fund balance levels to evaluate creditworthiness.

The Governmental Accounting Standards Board requires that the General Fund fund balance be classified according to five levels of constraints. The following classifications constitute the Fund Balance:

• NONSPENDABLE FUND BALANCE – Amounts that cannot be spent due to form, such as inventories and prepaid amounts, and amounts that must be maintained legally or contractually intact, such as the long-term portion of loans receivable and nonfinancial assets held for sale.

• RESTRICTED FUND BALANCE – Amounts constrained by external parties, constitutional provisions, or enabling legislation for a specific purpose.

• COMMITTED FUND BALANCE – Amounts constrained for a specific purpose by the City Council using its highest level of decision-making authority. It would require another action of the City Council to remove or change the constraints placed on the resources. Commitments must be established.

• ASSIGNED FUND BALANCE – Amounts constrained for a specific purpose by the city manager, who the City Council has given the delegated authority to assign amounts. The amount reported as assigned should not result in a deficit in the unassigned fund balance.

• UNASSIGNED FUND BALANCE – Amounts not classified as nonspendable, restricted, committed, or assigned. Unassigned fund balance represents the residual fund balance after deducting the nonspendable, restricted, committed, and assigned fund balance categories. The General Fund is the only fund that would report a positive amount in the unassigned fund balance.

Funding Requirements of Unassigned Fund Balance of the General Fund

• This policy establishes a minimum level for the General Fund unassigned fund balance and a Budget Stabilization Reserve. The General Fund unassigned fund balance shall be maintained at 35% of General Fund operating revenue as shown in the City’s most recent audited Annual Comprehensive Financial Report (Annual Report). Operating revenue will not include any substantial one-time revenue sources (such as Coronavirus Aid, Relief and Economic Security Funds, or American Rescue Plan Funds). The target for the Budget Stabilization Reserve is 5% of General Fund operating revenues (excluding any substantial one-time revenue), as shown in the City’s most recent audited Annual Report.

Funding Requirements of Unassigned Fund Balance of the General Fund

• The Budget Stabilization Reserve and Unassigned Fund Balance will be permitted to provide temporary funding for unforeseen emergency needs. The Budget Stabilization Reserve shall be exhausted before the unassigned fund balance is used.

• The use of unassigned fund balance should be restored as soon as reasonably possible. In determining the expediency of returning unassigned fund balance to the policy level, both the level of funding and the deficit’s size should be considered. The replenishment plan should consider the long-term forecast for both the operating budget and the capital improvement program. If feasible, the unassigned fund balance should be replenished within one or two years of use.

• The city manager shall develop an explicit strategy to replenish the unassigned fund balance as part of each year’s budget and long-term financial plan.

• If the event that requires the use of reserves is not a temporary situation, the strategic plan for replenishing reserves should address how expenditures and revenues will be adjusted to match the new economic reality.

• The strategy development should consider any unintended consequences. Examples to consider are necessary reductions in service levels due to reduced expenditures, increased cost of delaying capital improvements, the potential safety and risk factors, the impact on employee morale or customer service, or other costs associated with staff reductions.

Monitoring and Funding

• City staff will report on compliance with this policy during the presentation of the Annual Comprehensive Financial Report (ACFR) at the regular meeting of City Council in December each year.

• The City shall annually demonstrate that it will comply with this policy based on its proposed Operating and Capital Budget for each year.

G. TOURISM DEVELOPMENT FUND POLICY

(Adopted by City Council on August 10, 2017, amended February 14, 2019)

SECTION 1. ESTABLISHMENT OF SPECIAL REVENUE FUND AND FISCAL POLICY

1. Special Revenue Fund

a. The Tourism Development Fund (TDF) will be established as a special revenue fund in the City Budget.

b. The TDF will be subject to the fiscal controls of the City and shall abide by the adopted Budget Policies of the City regarding financial planning, revenues, expenditures, debt, investment, and fund balance.

c. The TDF annual budget shall include a five-year financial plan, with year one being the budget appropriation and the following four years for planning.

d. Unspent or unallocated funds shall remain in the fund and be a carryover to the next fiscal year.

e. Funds can be used to pay debt service obligations and borrowing expenses associated with TDF projects.

f. Funds are subject to the City audit and Annual Comprehensive Finance Report (ACFR) policies and processes.

SECTION 2. TOURISM DEVELOPMENT FUND PURPOSE AND ELIGIBLE EXPENDITURES

1. Purpose – The purpose of the Tourism Development Fund (TDF) is to increase patronage to restaurants, attractions, hotels, and events in the City of Williamsburg through financial assistance and reinvestment in tourism products, place-making projects, special events, and public-private partnerships.

2. Types of Expenditures Allowed

a. Development, expansion, or renovation of tourism products and infrastructure for tourism products.

b. Place-making projects and events.

c. Support projects and programs of the Economic Development Authority (EDA) for for-profit companies that meet the eligibility criteria and receive recommendations for funding.

d. Administrative costs of up to 10% shall be retained by the City.

3. Examples of Eligible Products

a. Streetscape renovations and enhancements

b. Transit improvements (bike share, pedestrian access, enhanced bus shelters)

c. Convention and group meeting facilities

d. Outdoor and indoor recreation facilities and amenities

e. Public parks

f. Tourism venues

g. Business improvement grants (through EDA)

h. Public art and place-making

i. Special events grants and marketing

j. Visitor infrastructure

k. Culinary arts incubators

l. Regional trails and cultural sites

m. Other projects that meet the eligibility criteria, demonstrate feasibility, and receive recommendation.

SECTION 3. TOURISM DEVELOPMENT FUND PROCESS AND PROJECT APPLICATION

1. Project Applications

The TDF application process will consist of two phases of application. The Phase 1 application is to establish eligibility and the Phase 2 process is to provide details necessary for staff and the TDF review committee to provide recommendations to City Council.

a. Phase 1 Application – At a minimum, the Phase 1 application will include information on the applying organization, amount of funding requested, identify if the project is new or an expansion, a project description, and the initial project budget and construction values.

b. Phase 2 Application – At a minimum, the Phase 2 application will include information on project feasibility, room night calculations, marketing plan, business plan, drawings, photos, renderings, site plans, organization leadership, project management, detailed project description, description on impact to local tourism, timeliness, project schedule, phasing, uniqueness of project, potential to stimulate other projects, letter of funding commitment, brand consistency, and methodology intended to capture visitation statistics provided.

2. Process requests for funding from the Tourism Development Fund shall follow the following process:

a. Submission of Phase 1 applications in March.

b. Submission of Phase 2 applications in May.

c. TDF Review Committee application review, interviews, and site visits in June and July.

d. TDF Review Committee application recommendation to City Council provided to the city manager in September.

e. City Council considers approval of projects in September.

f. Funding is appropriated and available to the TDF in October.

SECTION 4. TOURISM DEVELOPMENT FUND REVIEW COMMITTEE

1. PURPOSE OF THE REVIEW COMMITTEE – The TDF Review Committee will review and evaluate proposals from applicants for Tourism Development Fund projects for the purpose of providing a recommendation to the City Council and city manager for the budgeting and appropriation of funds. Recommendations shall be based on consistency and impact of the project and the purpose of the TDF.

2. APPOINTMENT – The TDF Review Committee shall be appointed by the City Council and serve two-year terms. TDF Review Committee members are eligible for re-appointment to serve three consecutive terms, six years. TDF Review Committee members must be residents of the City, own or represent a City business, or represent an event that occurs in the City.

3. COMMITTEE COMPOSITION – The TDF Review Committee shall consist of five members, with three (3) members representing the tourism industry and two members being selected at-large.

4. EX-OFFICIO MEMBERS – A member of the Planning Commission and a member of the Economic Development Authority shall serve as ex-officio members of the TDF Review Committee without a vote.

H. REAL ESTATE REVIEW POLICY

(Adopted by City Council June 10, 2021)

The Real Estate Tax Rate Review Policy commits to maintain a fair real property tax rate to appropriately fund the City government’s services and initiatives, maintain an adequate reserve, and provide economic stability to the residents and businesses in the City.

The City of Williamsburg complies with Title 58.1, Subtitle III, Chapter 32, Article 9, Section 58.13321 A of the Code of Virginia, which requires cities to reduce their tax rate so that the revenue generated on reassessments (less new construction) is no more than 101% of the previous year’s tax levy. In lieu of reducing the tax rate, a city shall give notice of a proposed real property tax increase and public hearing.

Annually, as a part of the budget development process, the City shall review the real property tax rate for increase or reduction. The review shall include consideration of the following variables presented in priority order:

1. Reserve Balance – Projected balances for the unassigned fund balances in the General Fund and the Capital Improvement Fund (Sales Tax Fund)

2. Budget Stabilization – projected balances in the:

a. General Fund budget stabilization line,

b. the Capital Improvement Fund Plan stabilization line, and

c. the Capital Improvement Fund Plan School CIP stabilization line

3. Fiscal Health – The year-end balances in each of the five years depicted in the five-year financial plan for the General Fund and Capital Fund

4. Assessed Value – Increase or decrease in the average assessed value resulting in an effective real property tax rate increase or decrease

5. Economic Conditions – Anticipated changes in economic conditions on a national, state, or local level, such as a depression or a recession

OBJECTIVES OF THE BUDGET PRACTICE EACH YEAR:

The City’s operating revenue projections will be reviewed annually to determine if the projections for both the current budget year and the long-term forecast are modestly conservative and aligned with the economic forecast for the region. Indicators to be considered, but not limited to, are Consumer Price Index (CPI), employment rates, and established and reputable forecast from nonbiased industry experts including, but not limited to, the hotel and travel industry.

Budgets will be developed to strategically achieve City Council’s Goals, Initiatives, and Objectives. The City’s operating expenditures will be reviewed, and projections verified in regards to contractual increases, inflationary increases, compensation packages that are sufficient to attract and retain quality employees, and are competitive with other public-sector employers, and personnel budgeted at levels necessary for providing quality services. Budgets will not include unnecessary or excessive spending and costs. Costs associated with new services or increased service levels will be identified for City Council’s consideration.

The City’s Capital Improvement Plan will include projects consistent with City Council’s Goals, Initiatives, and Outcomes developed during the strategic planning process. The plan should include projects that maintain the City’s facilities and infrastructure; grow, maintain, or diversify the City’s economic base, support the City’s quality of services, and improve the quality of life for residents and visitors. Care should be taken to ensure the plan does not increase the cost in future budgets by delaying the necessary maintenance of the City’s assets.

The City maintains compliance with legal requirements and Fiscal Policies, particularly the Fund Balance and Debt Policies.

I. UTILITY WORKING CAPITAL POLICY

(Amended June 11, 2021)

1. TARGET – Target working capital is equal to 75% (270 days, based on 360 days) of operating and maintenance expenses (not including depreciation), capital expenses, and debt service.

2. WITHDRAWAL & REPLENISHMENT OF RESERVES – To the extent that working capital remains above the target, 20% of the reserve may be used to fund significant capital improvement projects. For emergency repairs or unforeseen and sudden revenue shortfall of 10% or more, up to 30% of the reserve may be used in conjunction with a committed plan to restore working capital to the target level within three to five years. The plan to restore working capital will be submitted as part of the annual budget process.

3. REPORTING AND OVERSIGHT – Working capital target levels will be analyzed annually and reported to City Council as part of the year-end financial report presentation.

APPENDIX RESOLUTION NO. 23-02

BUDGET ADOPTION FISCAL YEAR 2023

WHEREAS a proposed budget for the City of Williamsburg for the fiscal year ending June 30, 2024, has been prepared in accordance with § 15.2-2503, et. seq. of the Code of Virginia (1950), as amended (the “Code”), and as required by Code § 15.2-2506 a brief synopsis thereof has been duly published and a public hearing has been held at the regular meeting of City Council held on April 13, 2023; and

WHEREAS, the proposed budget for the fiscal year ending June 30, 2024, is based upon an increase in the City’s total assessed value of real property and maintaining the real estate tax rate at $0.62 per $100.00 of assessed value; and

WHEREAS, at its April 13, 2023 session, and as required by Code § 58.1 Chapter 32-3321, City Council held a separate duly advertised public hearing regarding the increase in the total assessed value of real property; and

WHEREAS, based upon comments received from the public attending each of such hearings, and further based upon all information known to City Council regarding the financial needs of the City for such fiscal year:

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Williamsburg hereby adopts the proposed budget considered at the April 13, 2023 budget hearing with amendments as described in Exhibit 1.

A copy of the adopted budget shall be certified by and maintained by the Clerk of Council as part of the minutes of this May 11, 2023 session of City Council.

BE IT FURTHER RESOLVED, by the City Council of the City of Williamsburg, Virginia:

1. The City’s real estate tax rate shall be $0.62 per $100.00 of assessed value of taxable real estate.

2. That revenues and expenditures are hereby appropriated by Fund as set forth in Schedule A, entitled: “Adopted Budget - Fiscal Year Commencing July 1, 2024”.

3. That taxes shall be levied in the classifications and for the amounts set forth in Schedule B, entitled: “Local Tax Levies - Fiscal Year 2024”.

4. That revenues and expenditures for capital projects are hereby appropriated as set forth in Schedule C, entitled: “Capital Improvements Fiscal Year 2024”.

5. That the number of full-time equivalent positions set forth in Schedule D entitled “Authorized Full-Time Equivalent Positions FY 2024” shall be the maximum number of positions authorized for the various departments and divisions of the City during Fiscal Year 2024, and the number may be changed as authorized by the City Council. To improve the effectiveness and efficiency of service

delivery, the City Manager is authorized to transfer or change existing positions throughout the fiscal year as may be necessary to implement organizational goals.

6. Flexible budgets are hereby authorized whereby appropriations may be increased to the extent that actual revenues exceed the original revenue budget amount. This provision shall apply to the following:

Appropriation

ATL Fire Equipment

Four for Life EMS Equipment

Litter Prevention and Recycling

Revenue

Aid to Localities — Fire Equipment

Four for Life Grant

DEQ — Litter Prevention and Recycling Grant

EMS Scholarships VA Department of Health — EMS

Asset Forfeiture Department of Justice

Compensation for Special Events — Police Department

Overtime Police Services

Compensation for Special Events — Fire Department Overtime Fire Services

7. That EMS Recovery rates will be set at 150% of the Medicare Part B Ambulance Fee Schedule.

8. That the City Manager shall administer this budget in strict adherence to the Charter and Code of the City of Williamsburg, as amended, and the laws of the Commonwealth of Virginia. Amendments to the budget as adopted shall be only by Resolution, provided further that the City Manager is authorized to approve transfers of appropriated expenditures between object codes within fund groups as may be necessary to carry out the work of the City as directed by the City Council during the coming fiscal year. In addition, the City Manager is authorized to make the necessary adjustments to the budget to provide up to a 7% cost of living increase to all eligible city employees should the Commonwealth of Virginia’s budget provide for such an increase for a portion of the City’s employees.

9. This resolution shall take effect upon its adoption by City Council. PASSED AND ADOPTED by the City Council of the City of Williamsburg, Virginia, on May 11, 2023.

DUSTIE McCAY, CITY COUNCIL CLERK

DOUGLAS PONS, MAYOR

APPENDIX OPERATING & CAPITAL BUDGETS

EXHIBIT 1 - SUMMARY OF REVISIONS TO PROPOSED BUDGET AS OF 5/11/2023

GENERAL FUND

CAPITAL IMPROVEMENT PLAN FUND (SALES TAX)

EXHIBIT 1 - SUMMARY OF REVISIONS TO PROPOSED BUDGET AS OF 5/11/2023 (CONTINUED)

UTILITY FUND: NO CHANGES

TOURISM FUND: NO

TOURISM FUND: NO

SCHEDULE A - ADOPTED BUDGET FISCAL

YEAR COMMENCING JULY 1, 2023

SCHEDULE A - ADOPTED BUDGET FISCAL YEAR COMMENCING JULY 1, 2023 (CONTINUED)

TOURISM DEVELOPMENT FUND

PUBLIC ASSISTANCE FUND

QUARTERPATH CDA – FIDUCIARY FUND

SCHEDULE B - LOCAL TAX LEVIES FISCAL YEAR 2024

THE FOLLOWING TAX LEVIES FOR THE TAX YEAR BEGINNING JULY 1, 2023

ON $100.00 OF ASSESSED VALUE OF TAXABLE REAL ESTATE, THE RATE SHALL BE $.62.

1. On purchase of electricity, the rate shall be $.70/month plus $.007468 per kWh for residential, and $1.15/month plus $.006947 per kWh for commercial and industrial users. The maximum charge for residential users is $1.00 per month and $20.00 per month for commercial and industrial users.

2. On purchase of gas, other than propane, the rate shall be $.70/month plus $.014 per ccf for residential users and $1.15/month plus $.0243 per ccf for commercial and industrial users. The maximum charge for residential users is $1.00 per month and $20.00 per month for commercial and industrial users.

3. On purchase of Transient Lodging, the rate shall be five (5) percent of the total amount paid for lodging.

4. On purchase of “meals,” the rate shall be five (5) percent of the total amount paid for meals.

5. On purchase of cigarettes, the rate shall be two cents ($.02) per cigarette for each cigarette sold in the city (forty cents ($.40) per pack of twenty (20) cigarettes).

THE FOLLOWING TAX LEVIES FOR THE TAX YEAR BEGINNING JANUARY 1, 2023

1. On $100.00 of assessed value of taxable tangible personal property, including the property specifically classified by Section 58.1 3506 and Section 58.1 3507 of the Code of Virginia, the rate shall be $3.50. Assessed value of tangible personal property, including machinery and tools, but exclusive of motor vehicles will be 30% of acquisition cost. The assessed value of motor vehicles will be 100% of the J.D. Power (formerly NADA) average loan value. Motor vehicles specially equipped to provide transportation for physically disabled individuals, in compliance with City Code Section 18-29, shall be exempt from personal property taxation if such motor vehicle is licensed with special plates pursuant to Section 46.2-731 of the Code of Virginia, as amended. One motor vehicle owned and regularly used for transportation by any disabled veteran of the United Armed Forces (as defined by and in compliance with City Code Section 18-30) shall be exempt from personal property taxation.

2. On qualifying vehicles with assessed values of more than $1,000, Tax Relief shall be set at 35% and applied to the first $20,000 in value of each qualifying vehicle pursuant to Chapter 25 of Title 15.2 of the Code of Virginia.

3. On each $100.00 of bank net capital assessed as provided by law, the rate shall be eighty (80) cents per $100.00 as authorized by Sections 58.1 1208 and 58.1 1211 of the Code of Virginia.

The above tax rates shall also be applicable to real and tangible personal property of public service corporations, based upon the assessments generated annually by the State Corporation Commission, and duly certified.

SCHEDULE C - CAPITAL IMPROVEMENTS FISCAL YEAR 2024

GENERAL

UTILITY FUND CAPITAL IMPROVEMENTS

SCHEDULE D - TOTAL CITY EMPLOYEES FISCAL YEAR 2024

TOTAL CITY EMPLOYEES 235

APPENDIX UTILITY FUND WATER & SEWER ANALYSIS FY24-28

The FY24-28 internal water rate review looks at the financial viability of the Utility Fund in terms of projected expenses and revenues and year-end working capital for each year of the next five-year period. The water rate was not increased last year, remaining at $5.30/1,000 gallons. The City does not have a separate rate for sewer.

A. EXPENSES OUTLOOK

1. CAPITAL BUDGET

A. WATER SYSTEM – The proposed five-year capital expenses for the water system amount to approximately $4.8 million. The large projects include the Waller Mill Dam Project and water main improvements along Capitol Landing Road, which will be funded via a transfer from the Utility Fund to the Capital Fund. Capital debt service is the other driver in capital expenses affecting the water rate. The City has a long-term water supply agreement with Newport News Waterworks (NNWW). The 2009 agreement is a 50-year contract with 25-year renewals thereafter. Williamsburg contracted for 2 million gallons of water per day (mgd). The purchase cost is based on $12.5 million per 1 mgd of water, thus making our total commitment $25 million for 2 mgd. The City paid $12.5 million initially, and the remaining $12.5 million is due in June 2024. However, the City can opt out of the second $12.5 million payment at which time our allotment would drop to 1 mgd. For the first $12.5 million payment, the City paid $2.5 million from the Utility Fund and borrowed the remaining $10 million using a 15-year bank-qualified loan. The $10 million loan was refinanced in 2012 for another 15 years, i.e., through 2027. So, there would be a three-year overlap in financing should the City decide to purchase the other 1 mgd in FY24 unless the City negotiates a different arrangement with NNWW. In addition to the capital expense to reserve the water, money is budgeted for the cost of purchasing the water, if needed. Capital debt service and water purchase expenses cost the City approximately $.2 million per year.

B. SEWER SYSTEM – For the sanitary sewer capital side of the Utility Fund, a regional approach has been taken, and the localities in the Hampton Roads Sanitation District (HRSD) service areas have signed an Memorandum of Understanding with HRSD regarding Sanitary Sewer Overflows (SSO). The agreement designates HRSD as responsible for handling large cost items to control overflows in the entire service area of HRSD. HRSD will develop and implement the long-range Regional Wet Weather Management Plan (RWWMP). In response to developing the RWWMP, the District has embarked on the Safe Water Initiative for Tomorrow (SWIFT) project. Essentially highly treated wastewater is pumped into the ground instead of being discharged to the rivers and eventually to the Chesapeake Bay. This initiative potentially solves several issues, including making more groundwater available, helping to reduce land subsidence, and substantially reducing nutrients to our rivers. This is a long-term costly project but with tremendous benefits. Rates established by HRSD will continue to increase for the foreseeable future.

While HRSD assumes responsibility for controlling sewer overflows region-wide, the City will still need to budget for capital expenses to keep the infrastructure in good repair.

2. OPERATING BUDGET

On the operating side, the Utility expects to provide a modest increase (2% to 5% per year) in expenses over the next five-year planning period due to regulatory requirements primarily aimed at water treatment at the Water Plant, an aging infrastructure, personnel expenses, and economic conditions, including inflation and increased interest rates. Regulatory requirements continue to affect Water Plant operations as more testing is mandated; in some cases, Water Plant procedures must be modified. The aging infrastructure requires more inspection and maintenance, and the City is proactive in maintaining and repairing/replacing infrastructure. Expansion of the water and sewer systems, e.g., High Street, Quarterpath at Williamsburg, and York County development, require more effort to operate and maintain.

B. REVENUE OUTLOOK

1. GROWTH IN WATER DEMAND

Water demand in previous years has remained relatively flat because of the emphasis on water conservation by way of water-saving fixtures. The temporary decline in consumption due to the pandemic has reversed, and consumption has returned to pre-pandemic levels with a slight increase due to the completion of new development projects. Potential revenue from James City Service Authority (JCSA) was not included since water sales to the Authority are on an emergency basis only.

2. WATER AND SEWER FEES

The fees are broken into three areas: availability fees, Hampton Roads Sanitation District (HRSD) fees, and connection fees. The availability fees are designed to have new development pay for capital improvements, which primarily benefit future customers. The HRSD wastewater facility charge is for new connections and covers the cost of treatment capacity expansion, line extensions and pump stations. The third fee is the connection fee, which is the construction cost of the City installing the water and sewer connections to the customer’s property line.

The availability fees are based on meter size to reflect capacity and demand on the system. Several years ago, the City increased the fees substantially. This increase was predicated on new growth, paying equitably in the growth of the system, including securing a new water supply and the expenses associated with the capital investment in the utility system. A review of the City’s fees compared to other water purveyors in Virginia shows our fee structure to be in the average range. An increase in availability fees is not recommended for FY24.

HRSD establishes its fees and rates and reviews them each year. As discussed, their rates/fees are expected to increase because of the SSO Consent Order with the Environmental Protection Agency (EPA) and related work associated with the SWIFT initiative. The City elects to collect and forward the fees as well as usage charges for a “one-stop shopping” experience for City residents and businesses.

Finally, the water and sewer connection fees are the costs associated with the City installing water and sewer service lines. Service lines run from the main lines to the customer’s property line. For the most part, on new development, the developer installs the service line as part of the overall infrastructure of the development project. The City primarily installs service lines to infill development in existing subdivisions and small commercial sites. The water connection fee is based on meter size, while the sewer connection fee is more of a flat fee for residential or commercial construction. An increase is not recommended for FY24 since the fees are representative of the actual costs of constructing water and sewer service connections. The City’s connection fees are in line with other water and sewer purveyors in the region

RATE ANALYSIS

Working capital projections were developed for the next five-year period through 2028. The year-end working capital is essentially the Fund’s cash balance - the difference between short-term assets and liabilities.

Exhibit 1 shows working capital projections with no rate increase over the five-year study period. It was developed using 0.5% increases in revenue and 2% in expenses over the five-year period. Capital improvement expenses are based on recently submitted FY24-28 CIP budget figures. Debt service and estimated water purchase costs are shown for the long-term water contract with NNWW.

Exhibit 1 shows a reasonable estimated working capital balance each year over the study period but under the City’s adopted target working capital policy. The policy states that the target working capital equals 75% (270 days, based on 360 days) of operating and maintenance expenses (not including depreciation), capital expenses, and debt service. Although working capital is estimated to be under the target policy for future years, the City’s current working capital meets the policy, so a rate increase is not recommended for FY24. Maintaining a strong working capital balance is necessary to continue a viable enterprise and working capital will be closely monitored. The City will need to determine if it needs to exercise its right to reserve/purchase from NNWW another 1 million gallons of water to supplement the capacity of the Waller Mill reservoir.

While a rate increase is not proposed for FY24, a rate increase will likely be necessary in the next two years to keep the Utility Fund enterprise fiscally sound. Even though no rate increase is recommended, the community will likely experience an increase in their bills due to an anticipated HRSD rate increase for FY24. Proposed FY24 HRSD rates were not available at the time of this report.

A comparison chart, prepared by the Hampton Roads Planning Commission, comparing the utility bills for other Hampton Roads communities is presented in Exhibit 2. Although the other localities are also in the process of evaluating rates for FY24, rates currently in place (FY22) are used for comparison purposes. Williamsburg remains well below all other Hampton Roads communities

DANIEL G. CLAYTON III* DIRECTOR OF PUBLIC WORKS & UTILITIES

EXHIBIT 1 CITY OF WILLIAMSBURG WATER & SYSTEM OPERATIONS – CASH FLOWS

0.5% Growth in Water Consumption for FY25 through FY28

2.0% Growth in Operating Expenses for FY25 through FY28

EXHIBIT 2

FY 2022 WATER & SEWER RATES FOR LOCALITIES IN HAMPTON ROADS

FY22 Water and Sewer rates for localities within Hampton Roads. Total rates are labeled at the top of each bar. Totals were calculated as the sum of the locality water and sewer contributions in addition to the HRSD bill. The monthly bill was calculated for 5,000 gallons used by a single-family residence.

Monthly Cost for 5,000 Gallons

APPENDIX

FY24 OPERATING BUDGET

STATISTICAL INFORMATION

ASSESSED VALUE OF TAXABLE PROPERTY LAST 10 FISCAL YEARS

RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR G.O.-BONDED DEBT TO TOTAL GENERAL GOVERNMENTAL EXPENDITURES LAST

PROPERTY TAX RATES PER $100 OF VALUATION

*Principal includes $3,851,000 from 2017 Series Refunding Bonds to payoff 2013 bank qualified borrowing for the Stryker Center.

APPENDIX GLOSSARY

ACCOUNTING SYSTEM – The total set of records and procedures that are used to record, classify, and report information on the financial status and operations of the City.

ACCRUAL BASIS OF ACCOUNTING – The method of accounting under which revenues are recorded when they are earned (whether cash is received at that time) and expenditures are recorded when goods and services are received (whether cash disbursements are made at that time).

ACCOUNT NUMBER – A numerical code identifying Revenues and Expenditures by Fund, Department, Activity, Type and Object.

ACTIVITY – One of the tasks, goals, etc., of a departmental program.

ALLOCATE – To set apart or earmark for a specific purpose.

APPROPRIATION – An authorization granted by the City Council to make expenditures and to incur obligations for purposes specified in the budget.

AMERICAN RESCUE PLAN ACT OF 2021 (ARPA) – Law signed on March 22, 2021, to provide funding to mitigate the continuing effects of the COVID-19 pandemic.

AMERICAN RESCUE PLAN FUND (ARP) – Fund created June 2021 to account for revenue and expenditures of the Coronavirus State and Local Fiscal Recovery Funds (SLFRF).

ASSESSMENT – The value set by the city assessor annually for a particular real property in the City.

BALANCED BUDGET – The city manager annually proposes, and the City Council adopts, a budget or financial plan for the upcoming year in which the revenues available, including any available fund balance from prior years, match or exceed the projected expenditures.

BOND – A type of financial security typically sold to finance capital improvement projects. Bonds evidence the issuer’s obligation to repay a specified principal amount on a set maturity date, together with interest at a stated rate, or according to a formula that determines that rate.

BOND RATING – An evaluation performed by an independent rating service of the credit quality of bonds issued. Ratings are intended to measure the probability of timely repayment of principal and interest on municipal securities.

BUDGET – A policy setting document establishing a comprehensive plan for financial operations. The plan details an estimate of proposed expenditures for a given period and the proposed means of financing them. The City’s annual budget is established by City Council with a budget resolution.

BUDGET REVISION – A formal change in the total amount of budgeted expenditures during a fiscal year by action of City Council.

BUDGET STABILIZATION – Funds that may be used at City Council’s discretion to address temporary cash flow shortages during economic downturns, to fund one-time opportunities, and to provide flexibility in funding opportunities that help achieve the City’s goals.

BUDGET TRANSFER – A formal transfer from one activity to another, without changing a department’s budget total. Transfers are approved at the city manager level and do not require action by City Council.

BUSINESS, PROFESSIONAL AND OCCUPATIONAL LICENSE TAX (BPOL)

– A tax on the privilege of doing business within the City. The tax is administered by the Commissioner of the Revenue.

CAPITAL ASSETS – Assets of long-term character that are intended to continue to be held or used, such as land, buildings, infrastructure, vehicles, machinery, furniture, and other equipment.

CAPITAL IMPROVEMENT PLAN FUND (CIP)

– A five-year program developed to guide spending for the scheduled major capital improvements for the upcoming year, such as, but not limited to, buildings, parks, and streets. The CIP also identifies financing sources for these projects. The CIP budget is adopted as a one-year appropriation as part of the five-year plan to authorize expenditures for the projects in the first year of the program. In Williamsburg, the CIP Fund was formerly known as the Sales Tax Fund as the 1% retail sales tax revenue returned to the locality from the Commonwealth of Virginia are budgeted in this fund.

CAPITAL PROJECT – A long-term, capitalintensive project that is relatively large and permanent in nature. For example: street improvements, sidewalks, bridge rehabilitation, buildings, park improvements, and City vehicles. Capital improvements are accounted for in either the Capital Improvement Plan Fund for general improvements, or the Utility Capital Improvement Fund for water- and sewer-related projects.

CARRYOVER – Refers to the process of transferring specific funds and obligations previously approved by City Council from the end of one fiscal year to the next fiscal year.

COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM, (CDBG) – A grant program funded by the U.S. Deptartment of Housing & Urban Development (HUD). These grant funds are used in the City to improve housing, neighborhoods, and economic conditions of the

City’s low- and moderate-income residents. The City works exclusively with the Williamsburg Redevelopment & Housing Authority (WRHA), as the agency receives federal funds directly for CDBG projects.

CONSTITUTIONAL OFFICES – The offices or agencies directed by elected officials whose positions (sheriff, treasurer, Commissioner of the Revenue, etc.) are established by the Constitution of the Commonwealth of Virginia or its statutes.

CONTINGENCY ACCOUNT – A budgetary reserve set aside for emergencies or unforeseen expenditures.

CONTRACTUAL SERVICE – An expenditure for services performed by a non-employee. For example: computer, building, and copy machine maintenance, special studies, etc.

CARES – Coronavirus Aid, Relief, and Economic Security Act signed into law on March 27, 2020, to provide funding to alleviate the economic effects of the COVID-19 pandemic.

COVID-19 – The name given by the World Health Organization (WHO) on February 11, 2020, for the disease caused by the novel coronavirus SARS-CoV-2. COVID-19 emerged in December 2019 and caused a worldwide pandemic with health, economic, and social implications.

DEBT SERVICE – The annual payment of principal and interest that the City pays on funds borrowed for capital projects.

DEFICIT – The excess of an entity’s liabilities over its assets or the excess of expenditures over revenues during a single accounting period.

DEPARTMENT – The department is the primary administrative unit in City operations. Each is directed by a department head. Departments are generally composed of divisions of activities that share a common purpose.

DEPRECIATION – (1) Expiration in the service life of capital assets attributable to wear and tear, deterioration, action of the physical elements, inadequacy or obsolescence; (2) that portion of the cost of a capital asset which is charged as an expense during a particular period.

ENCUMBRANCES – An obligation or commitment, typically in the form of a purchase order, which commits current appropriated funds for a future payment. The purpose of encumbrance accounting is to prevent budget overspending.

ENTERPRISE FUND – A self-supporting fund for which a fee is charged to external users for good and services.

EXPENDITURE – A decrease in net financial resources. The outflow of funds paid or to be paid for an asset or goods or services obtained regardless of when the expense is actually paid.

FAMILIES FIRST CORONAVIRUS RESPONSE ACT, (FFCRA) – Law passed on March 18, 2020, that provides funding for the ongoing economic consequences of the COVID-19 pandemic, requirements for expanded sick leave, and other provisions.

FINANCIAL POLICY – The City’s policy in respect to taxes, spending, and debt management as related to the provision of City services, programs, and capital investment and financing.

FISCAL YEAR – The 12-month period on which the City operates its financial affairs. At the end of the period, the City determines its financial position and results of its operations. The City of Williamsburg’s fiscal year is July 1 through June 30.

FIXED ASSET – An expenditure for a good that has an expected life of more than one year and the cost of which is over $5,000. Examples include real property, office equipment, and vehicles

FRINGE BENEFITS – Job-related benefits, in addition to wages or salary, provided to employees as part of their total compensation. (i.e., FICA, retirement, health, life, dental insurance, employees, etc.).

FULL-TIME EQUIVALENT (FTE) – The percentage of time a staff member works represented as a decimal. A full-time authorized staff position is 1.00, equating to 2,080 hours of work per year (2,912 for uniformed firefighters) a half-time person is .50 and a quarter-time person is .25.

FUND – A fiscal and accounting entity with a self-balancing set of accounts recording cash and other financial resources which are segregated for the purpose of carrying on specific activities or attaining certain objectives.

FUND BALANCE – The equity of a fund. It is the excess of a fund’s assets over its liabilities. Fund Balance is calculated by taking the beginning balance as of the beginning of the fiscal year, adding in all revenues received during the year, and deducting the year’s expenditures. Fund balance is categorized based on the type and source of constraints placed on how the resources can be spent. The five categories are nonspendable, restricted, committed, assigned, and unassigned fund balance.

GENERAL FUND – The fund type that accounts for the daily operations of the City, supported by local taxes, fees, and state revenues. This fund includes all revenues and expenditures not accounted for in specific purpose funds and is the largest fund in the City’s budget.

GENERALLY

ACCEPTED ACCOUNTING

PRINCIPLES (GAAP) – The uniform set of accounting principles, standards and procedures used for financial accounting, recording, and reporting purposes.

GOALS, INITIATIVES, AND OUTCOMES (GIO) – To advance the City’s vision, every two years the Williamsburg City Council identifies and adopts new strategic objectives for City government. The biennial Goals, Initiatives, and Outcomes (GIOs) provide an expression of City priorities, as specific and measurable as possible, covering a two-year period.

HISTORIC TRIANGLE – The City of Williamsburg and the Counties of James City and York.

HISTORIC TRIANGLE MARKETING FUND –

ACCOUNTING STANDARDS BOARD (GASB) – A nonprofit organization organized in 1984 as an operating entity of the Financial Accounting Foundation (FAF) to establish standards of financial accounting and reporting for state and local governmental entities.

GOVERNMENTAL

GOVERNMENT FINANCE OFFICERS ASSOCIATION OF THE UNITED STATES AND CANADA (GFOA) – An association of government finance officials with the mission to advance excellence in public finance.

GOVERNMENTAL FUNDS – Funds generally used to account for tax-supported activities. There are five different types of governmental funds: the general fund, special revenue funds, debt service funds, capital projects funds, and permanent funds.

GRANT – A contribution by a government or other organization to support a particular function.

HISTORIC SALES TAX – A retail sales and use tax of 1% imposed in the Historic Triangle enacted by the General Assembly of Virginia in section 58.1-603.2 of the Code of Virginia. Fifty percent of the revenue is deposited into the Historic Triangle Marketing Fund, and the other 50% is distributed to the locality in which the sales tax was collected. The purpose of the Historic Marketing is to market, advertise, and promote the Historic Triangle area as an overnight tourism destination.

Funded by one-half or the 1% sales tax imposed by section 58.1-603.2 of the Virginia Code and one-half of the transient occupancy tax imposed by section58.1-3828.3 (C) of the Virginia Code. Money in the fund is to be used solely for marketing, advertising, and promoting the Historic Triangle Area as an overnight tourism destination.

INFRASTRUCTURE – Public fixed assets such as bridges, curbs and gutters, streets, sidewalks, drainage systems and lighting systems installed for the common good.

LINE ITEM – An individual expenditure (or expense) category listing in the budget (salaries, supplies, etc.).

MAJOR FUND – Governmental or enterprise fund reported as a separate column in the basic fund financial statements and subject to a separate opinion in the independent auditor’s report. The general fund is always a major fund.

MODIFIED ACCRUAL BASIS OF ACCOUNTING

– A basis of accounting used for governmental funds in which (a) revenues are recognized in the accounting period in which they become available and measurable and (b) expenditures are recognized in the accounting period in which the fund liability is incurred, if measurable, except for unmatured interest on general long-term debt and certain similar accrued obligations, which should be recognized when due.

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NONSPENDABLE FUND BALANCE

Amounts that cannot be spent due to form, for example, inventories and prepaid amounts. Also, long-term loan and notes receivables, and property held for resale would be reported here unless the proceeds are restricted, committed, or assigned. Amounts that must be maintained intact legally or contractually (corpus or principal of a permanent fund).

PAY-AS-YOU-GO – Also known as “paygo.” Refers to the method of financing capital projects from savings or normal cash flow. This requires annual appropriation of existing resources without the need to borrow funds.

PERSONAL PROPERTY – A category of property identified for purposes of taxation in Virginia. It comprises personally owned vehicles, as well as corporate property and business equipment. Examples include automobiles, motorcycles, trailers, boats, airplanes, business furnishings, and manufacturing equipment.

REAL PROPERTY – Real estate, including land and improvements, classified for purposes of assessment.

RESTRICTED FUND BALANCE – Amounts constrained for a specific purpose by external parties, constitutional provision, or enabling legislation.

REVENUE – Funds that the government receives as income. It may include taxes, fees for services, fines, receipts from other governments grants and interest income.

SALES TAX FUND – see CAPITAL IMPROVEMENT PLAN.

SPECIAL REVENUE FUND – A governmental fund used to account for the proceeds of specific revenue sources that are legally restricted or committed to expenditure for specific purpose such as grants for specific programs.

SUPPLEMENTAL APPROPRIATION – An increase to a department’s budget (spending authority) approved by City Council during the course of the fiscal year. It generally involves appropriation of a grant or other outside revenue.

SURPLUS – The excess of revenues over expenditures for a fund during a fiscal year.

TAXES – Compulsory charges levied by a government, school, sewer or other special district for the purpose of financing services performed for the common benefit.

TAX BASE – The total market value of real property (land, buildings, and related improvements), public service corporation property, and personal property (cars, boats, and business tangible equipment) in the City.

TAX LEVY – The total amount to be raised by either real or personal property taxes.

TAX RATE – The amount of taxes levied on a specific unit of cost (e.g., tax per $100 of assessed valuation, either real or personal property).

TAX RATE LIMIT TAX RATE – The maximum legal property tax rate at which a municipality may levy a tax. The limit may apply to taxes raised for a particular purpose or for general purposed. In Virginia, this is generally established in the State Code and by the governing authority (City Council).

TOURISM FUND – A Special Revenue Fund used to account for revenues and expenditures per City Council’s Tourism Development Fund Policy. Revenues of this fund include a transfer from the General Fund in support of tourism, one-half of the 1% Historic Triangle Sales Tax, and one-half of the $2 Lodging Tax.

TRANSFER – A transfer is a movement of monies from one fund, activity, department, or account to another. This includes budgetary funds and/or movement of assets.

UNASSIGNED FUND BALANCE – Fund balance that is available for any purpose.

For the general fund, amounts not classified as nonspendable, restricted, committed or assigned. The general fund is the only fund that would report a positive amount in unassigned fund balance.

VIRGINIA RETIREMENT SYSTEM (VRS)

– The state retirement system for public employees that provides its members with benefits at retirement or upon disability or death. Funding of the plan is provided by a 5% contribution from City employees and contributions from the City.

WORKING CAPITAL – Current assets less current liabilities. This measure indicates the relatively liquid portion of total enterprise fund capital, which constitutes a margin or buffer for meeting obligations.

WORKLOAD MEASURES – Represent the numerical inputs, outputs and/or outcomes of City operating programs.

COMMONLY USED ACRONYMS

ARPA – American Rescue Plan Act of 2021

BPOL – Business, Professional and Occupational License Tax

CARES – Coronavirus Aid, Relief, and Economic Security Act

CDBG – Community Development Block Grant Program

CIP – Capital Improvement Plan

CSA – Children’s Services Act

DEQ – Department of Environmental Quality

DMV – Department of Motor Vehicles

DORA – Designated Outdoor Refreshment Area

EDA – Economic Development Authority

FFCRA – Families First Coronavirus Response Act

FHWA – Federal Highway Administration

FOIA – Freedom of Information Act

FTE – Full-Time Equivalent

FY – Fiscal Year. The City’s FY begins July 1 each year.

GAAP – Generally Accepted Accounting Principles

GASB – Governmental Accounting Standards Board

GFOA – Government Finance Officers Association of the United States and Canada

GIO – Goals, Initiatives, and Outcomes

HTRFA – Historic Triangle Recreation Facilities Authority

IT – Information Technology

JCC – James City County

PC – Planning Commission

RFP – Request for Proposal

SBITA – Subscription-Based Information Technology Arrangement

SLFRF – State and Local Fiscal Recovery Funds

VDOT – Virginia Department of  Transportation

VHDA – Virginia Housing Development Authority

VPRJ – Virginia Peninsula Regional Jail

VPSA – Virginia Public School Authority

VRS – Virginia Retirement System

WATA – Williamsburg Area Transit Authority

WRL – Williamsburg Regional Library