FY 2013 Williamsburg Budget Worksheets

City Council of Williamsburg Retreat Work Sheets: Budget FY 2013 January 21, 2012

Effects of Fall 2011 News

Major Anticipated FY13 Cost Increases

Options for Savings and Added Revenue (for discussion purposes only)

Financial History and Outlook Charts and Graphs 

General Fund Operating History (3 graphs)



Taxable Property Assessments



General Fund Budget Scenarios to FY 2020 (4 charts)

Effect of News in Fall 2011 on Williamsburg’s FY 2013 Budget

September 30 school enrollment adds 88 city students, shifting costs from JCC as much as

$ 740,000

VRS increases city contribution rate from 16.44% to 21.29% of payroll for FY13/14 is

$ 430,000

School announces federal/state revenue reductions, and increased VRS and other costs will create a $7.5 mil gap. If no reductions are made in projected school cost, City portion is

$ 740,000

Total impact on FY 2012 budget

$1,910,000

As of percent of a $32 mil budget

5.9%

Major Anticipated Cost Increases and Revenue Decreases In Williamsburg’s FY 2013 G.F. Budget

Cost Increases

Range ($ thousands)

School enrollment cost shift from JCC to Williamsburg

$400 to $700

School FY13 city contribution

$300 to $500

VRS contribution rate increase 16.4% to 21.3%

$350

Health insurance (assuming employee pay all over this amount)

$150

Regional Jail and Juvenile Detention increase

$150

Total Major Anticipated Cost Increases

from $1,350 to $1,850

Revenue Decreases Real estate tax receipts due to lower assessments Residential Commercial

$280 to $320 $240 to $260

Sales tax for education reduction from state

$75 to $100

Total Major Anticipated Revenue Decrease

from $ 595 to $ 680

Total Negative Impact

from $1,945 to $2,530

For Discussion Purposes Only

Options for Savings and Revenue Williamsburg’s FY 2013 G.F. Budget 1. Departmental Operations Reduce General Fund operational budget accounts for city departments in an average target amount of 3%.

Savings estimate: $195,000 2. Departmental Capital Reduce General Fund capital accounts for city departments in an average target amount of 10%.

Savings estimate: $25,000 3. Retiree Health Insurance Terminate retiree health insurance supplement.

Savings estimate: $50,000 4. Employee Dental Program Reduce Employee Dental Reimbursement from $2,000 to $1,500 Estimated Savings: $20,000 5. Deferred Compensation Incentive Program Terminate employer contribution to employee deferred compensation ending incentive program.

Savings estimate: $60,000 6. Staffing Reductions Reduce a target of two FTE’s (1.1% of workforce).

Savings estimate: $100,000 7. Refuse Change to Curb Side Trash Pickup Only Savings estimate: $55,000 8. Economic Development Fund Reduce economic development contingency account from $100,000 to $50,000.

Savings estimate: $50,000

For Discussion Purposes Only

9. Tourism Promotion Reduce funding for tourism promotion (CWF and Alliance) to equal 50% of current year room tax budget.

Savings estimate: $200,000 10. Health Agencies Reduce contributions to outside health agencies (Health Department, Olde Town, CHIP, Colonial Behavioral Health) by an average target amount of 4%.

Savings estimate: $19,000 11. Other Agencies Reduce contributions to other outside agencies (Human Services, Economic Development, Community Development, Regional agencies, transportation) by an average target amount of 4%.

Savings estimate: $75,000 12. Property Tax Increase property tax above current $.54 per $100; each penny generates $163,000.

Added revenue for a five cent increase: $815,000 13. Personal Property Tax Increase personal property tax rate from $3.50 to $4.00 per $100 of value to match rate in JCC and York.

Added revenue estimate: $325,000 14. Cigarette Tax Increase cigarette tax from $.25 per pack, to $.30.

Added revenue estimate: $30,000 15. Licenses and Permits Increase various licenses and permit fees an average target rate of 10% over current budget.

Added revenue estimate: $20,000 16. EMS Recovery Increase EMS recovery fees.

Added revenue estimate: $100,000

For Discussion Purposes Only

17. Parks and Rec

Increase charges for Parks and Recreation programs an average target rate of 10% over current year budget.

Added revenue estimate: $30,000 18. Interest Income Reallocate interest income from Sales Tax fund back to General Fund Operating to equal FY13 budget estimate for General Fund interest income.

Added operating revenue estimate: $75,000 19. Antennae Fees Transfer fees for private antennas on city tower facilities from the Utility Fund to the General Fund.

Added operating revenue estimate: $150,000

If all options were employed, the FY2013 budget would benefit in the amount of $2,394,000.

Examples of Further Savings through Major Service Reductions 1. Eliminate Athletic Programs Estimated Savings: $185,000 2. Close Waller Mill Park Estimated Savings: $110,000 3. Eliminate Local Human Service Programs Estimated Savings: $70,000 4. Eliminate Bus Service (WAT) Estimated Savings: $265,000 5. Eliminate Arts Commission and Festival Williamsburg Funding Estimated Savings: $110,000

For Discussion Purposes Only

General Fund Operating History $36 $34.1 $33.2 $32.1 $32

$31.3

$30.8

$31.9

$29.2 $28

Revenues Expenditures Operating Budget

$24 millions

FY 2006 Actual

FY 2007 Actual

FY 2008 Actual

FY 2009 Actual

FY 2010 Actual

FY 2011 Actual

FY 2012 Budget

General Fund Actual Expenditures ‐ FY 2008 thru FY 2011 $20 $18 $16 City Depts

$14

Millions

$12

Regional Activities

$10

Schools $8 Agencies

$6 $4 $2 $0 FY 2008

FY 2009

FY 2010

FY 2011

General Fund Departmental Expenditures ‐ FY 2008 thru FY 2011 $10 $9 $8 Salaries

Millions

$7 VRS

$6

Healthcare

$5 $4

Operating

$3

Capital

$2 $1 $0 FY 2008

FY 2009

FY 2010

FY 2011

City of Williamsburg Taxable Property Assessments by Year/Type/Class (not including new construction each year)

Billed Fall 2009 Property Type

Property Class

Billed Fall 2010

To be billed Fall 2012

Billed Fall 2011

FY 2010 Actual

FY 2010 % increase

FY 2011 Actual

FY 2011 % increase

FY 2012 Actual

FY 2012 % increase

FY 2013 Estimated

FY 2013 % increase

Residential Residential

Land Improvements Total Residential

396,930,400 801,389,400 1,198,319,800

5.8% 17.1% 13.1%

393,834,800 768,693,000 1,162,527,800

-0.8% -4.1% -3.0%

366,096,000 765,317,100 1,131,413,100

-7.0% -0.4% -2.7%

335,100,000 740,000,000 1,075,100,000

-8.5% -3.3% -5.0%

Commercial Commercial

Land Improvements Total Commercial

304,867,800 389,384,200 694,252,000

-7.4% -15.9% -12.3%

294,178,000 370,803,400 664,981,400

-3.5% -4.8% -4.2%

239,496,300 365,248,200 604,744,500

-18.6% -1.5% -9.1%

215,918,900 340,900,000 556,818,900

-9.8% -6.7% -7.9%

1,892,571,800

2.2%

1,827,509,200

-3.4%

1,736,157,600

-5.0%

1,631,918,900

-6.0%

TOTAL

$10,219,888

$9,868,550

$9,375,251

$8,812,362

63.3% 36.7%

63.6% 36.4%

65.2% 34.8%

65.9% 34.1%

$10,219,888

$9,868,550

$9,375,251

$8,812,362

Estimated revenue based on 98% collection rate:

$9,187,746

$8,636,115

@ 99% collection rate:

$9,281,499

$8,724,238

$173,616

$163,192

Taxes Generated at 54 cents/$100 Residential % Commercial %

Taxes Generated at 54 cents/$100

One penny on tax rate =

$189,257

$182,751

DATE:

January 21, 2012

SUBJECT:

Four Revenue/Expenditure Scenarios through 2020

The four charts attached match “worse” and “better” pictures for Williamsburg’s financial future, looking at both revenues and expenditures, assumptions. Four scenarios result:

Fiscal Year % Change REVENUE ASSUMPTIONS

13

14

15

16

17

18

19

20

Worse

Property Taxes

-6

-6

-4

-2

0

2

2

2

Other Local Taxes

0

2

2

2

2

2

2

2

Other

0

2

2

2

2

2

2

2

Property Taxes

0

1

3

3

3

3

3

3

Other Local Taxes

2

3

4

4

4

4

4

4

Other

2

3

4

4

4

4

4

4

Departments

2

2

4

4

4

4

4

4

Other/Schools

6

6

4

4

4

4

4

4

Departments

0

0

2

2

2

2

2

2

Other/Schools

2

2

2

2

2

2

2

2

Better

EXPENDITURE ASSUMPTIONS Worse

Better

City of Williamsburg General Fund Budget Scenarios to FY 2020 $45

$40

$35

Millions

$30

OTHER REVENUE

$25

LOCAL TAXES

$20

PROPERTY TAXES $15 EXPENDITURES $10

$5

$0 2006

2007

2008

2009

2010

2011

2012

Fiscal Year ‐ Actual

Scenario #1:

2014

2015

2016

2017

Fiscal Year ‐ Projected

WORSE / WORSE (revenue)

2013

(spending)

2018

2019

2020

City of Williamsburg General Fund Budget Scenarios to FY 2020 $45

$40

$35

Millions

$30

OTHER REVENUE

$25

LOCAL TAXES

$20

PROPERTY TAXES $15 EXPENDITURES $10

$5

$0 2006

2007

2008

2009

2010

2011

2012

Fiscal Year ‐ Actual

Scenario #2:

2014

2015

2016

2017

Fiscal Year ‐ Projected

BETTER / WORSE (revenue)

2013

(spending)

2018

2019

2020

City of Williamsburg General Fund Budget Scenarios to FY 2020 $45

$40

$35

Millions

$30

OTHER REVENUE

$25

LOCAL TAXES

$20

PROPERTY TAXES $15 EXPENDITURES $10

$5

$0 2006

2007

2008

2009

2010

2011

2012

Fiscal Year ‐ Actual

Scenario #3:

2014

2015

2016

2017

Fiscal Year ‐ Projected

WORSE / BETTER (revenue)

2013

(spending)

2018

2019

2020

City of Williamsburg General Fund Budget Scenarios to FY 2020 $45

$40

$35

Millions

$30

OTHER REVENUE

$25

LOCAL TAXES

$20

PROPERTY TAXES $15 EXPENDITURES $10

$5

$0 2006

2007

2008

2009

2010

2011

2012

Fiscal Year ‐ Actual

Scenario #4:

2014

2015

2016

2017

Fiscal Year ‐ Projected

BETTER / BETTER (revenue)

2013

(spending)

2018

2019

2020