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