FY 2019-20 Proposed ExecSummary WEB

When Councilman Moss and I collaborated again this spring in creating an alternative budget to what our City Manager has given to Council, our priorities have remained steadfast as they did in last year’s budget cycle. Our priorities are:

• The people of Virginia Beach have the first right to the wages their family has earned;

• The quality of life of the people of Virginia Beach should not be diminished in favor of the seemingly insatiable urge of our representatives to spend frivolously on projects that do not enhance the livability of our community;

• The long-term sustainability and livability of the people of Virginia Beach is an utmost consideration and we must take the necessary steps to strengthen the long-term resiliency of our Community for a Lifetime;

• The ‘needs’ of the people of Virginia Beach must be budgeted before the ‘wants’ of councilmembers

The need for our colleagues on City Council to adopt our People’s Budget is simple: we, as a body, must create a budget that mirrors the economic realities faced by several thousands of our constituents. 44% of our students are eligible for free and reduced lunch; the percentage of our community that is labeled as being in poverty has grown over the last decade to 8%; more than half (51.5%) of renters in Virginia Beach spend more than 30% of their income on rent – which has increased over the last decade – which means more residents are financially stressed; our regional GDP growth rate is at 1.8%, which is lower than the national average of 2.3%, and the City Manager’s proposed budget outpaces our regional economic growth. Therefore, any tax or fee increase is inherently regressive and disproportionately affects economically disadvantaged residents. Additionally, city spending that outpaces regional economic growth is not sustainable.

Our priorities in the creation of the People’s Budget were simple:

• No increase in real estate tax

• No increase in stormwater management fee

• No increase in trash fee

• Public Safety pay compression

• Increase investment in drainage maintenance

• Increase available debt capacity for flood mitigation projects

Collectively, Councilman Moss and I had to find $14.47 million in the City Manager’s proposed budget to cut in order to offset proposed tax and fee increases. I’m proud to say that we accomplished what we set out to do for the People’s Budget!

• $14,888,396 of recurring expenditure offsets reapplied

• $4,320,325 of one-time expenditure offsets reapplied

• $45,695,250 of funded debt capacity realigned to accelerate implementation of flood mitigation projects

• $30,750,000 of debt capacity reserved for future investment in flood mitigation projects

How did we adjust the City Manager’s proposed budget in order to accomplish our goals for the people of Virginia Beach and offset more than $14.47 million in increases?

• Adjustment of TIP funding formula to reduce amusement tax contribution from 10-percent to 5-percent = $3,509,689

• Realignment of 10 FTEs back to the TAP Funding = $885,457

• Reduction of General Fund new vehicle procurement by twenty percent = $1,071,502 ($4,286,738 remains available)

• Elimination of 53.47 new City FTEs = estimated $3,475,550 (City Manager will have to prioritize his proposed new positions relative to vacancies existing at current adopted budget authorized FTEs)

• Adjustments to Other Departments = $3,746,089

• Lapse Rate and other Labor efficiencies = $2,200,109

• Eliminate new “Strategic Initiatives” budget line item (which had no justification in departmental narrative) = $2,500,000

• Hold City Manager’s office to FY 18-19 levels (offset = $200,594)

• Hold total expenditures of Human Resources department at FY 18-19 levels (offset = $159,948)

• Reduce 19.82% increase over current budget for Information Technology by half (offset = $266,404)

• Hold total expenditures at current budget for Municipal Council to FY 18-19 levels (offset = $79,088 and eliminates growth of 13.5 percent)

• Hold the budget line item “Computer Replacement Program” to FY 18-19 levels (offset = $469,647 and eliminates 3.9% increase)

• Eliminate contribution to Hampton Roads Chamber (offset = $10,000) due to the group’s active involvement in influencing our local elections

• Realign 10 positions transferred to the unrestricted General Fund in May 2017 back to the TAP fund for an increase in the General Fund of $885,457 (recurring revenue)

• Parks and Recreation: reduce Pay-as-You-Go General Fund growth of 100 percent to 50 percent growth (offset = $450,567)

• Information Technology: the FY 20 programmed funding in the FY 18-19 CIP was $17,843,657. The FY 20 programmed funding in the FY 19-20 CIP was $20,697,771. The overall FY 20 growth in the FY 19-20 CIP over the FY 18-19 CIP was $3,869,668, or 21.68%, so reinstate the FY 18-19 CIP amount for FY 20 as the amount for FY 20 in the FY 19-20 CIP (offset = $3,867,668)

• Realign 50% of amusement tax revenues to the General Fund (which equates to $3,509,689 of recurring revenues and offset for the $3,509,689 in TIP Revenues)

• Eliminate CIP for Dome Site Entertainment Venue ($28,500,000)

• Defer the start of CIP # 9039000 [17th Street Improvement Phase 1] until FY 23 ($2,000,000 in FY 20, $6,500,000 in FY 21 and $17,500,000 in FY 22)

• Defer the start of CIP # 9063000 [17th Street Improvement] until FY 23 ($250,000 in FY 20, $1,000,000 in FY 21 and $1,000,000 in FY 22)

• Released TIP Dollars for Reallocation $5,394,418 within TIP for Pay-As-You and limit contingency funding to 6% for the following CIP projects in FY 20

• • CIP Project P9100000 [19th Street Improvements] -$540,386

  • CIP Project P9065000 [Dome Site Parking] – $2,089,800

  • CIP Project P9050000 [Dome Site Street Scapes] – $743,000

  • CIP Project P9096000 [Oceanfront Capital Projects Reinvestment] -$787,832

  • CIP Project P9006000 [Winston Salem Avenue Improvements] -$783,400

• Recommend new CIP Project Atlantic Ave Refurbishment in FY 20 with $5,394,418 (Pay-As-You-Go)

• And finally, to increase funded debt capacity for flooding, defer CIP Project #3072000 City Hall Replacement to FY 26 (outside the six-year) by realigning the authorized bonds in the FY 18-19 in the amount of $50,250,000 less estimated expenditures of $4,304,750 (design) and $250,000 (study only). This provides $45,695,250 of funded bonds to accelerate implementation of flood mitigation projects

Last year, we held strong and the people of Virginia Beach were able to keep more of what they earn. This year, we can repeat our success – but only if you contact your representatives on Council. You can email us at CityCouncil@vbgov.com. Tell them you support The People’s Budget!