PROPOSED BUILDING A FISCAL YEAR 2016 BUDGET RESILIENT CITY CITY OF NORFOLK, VA
1 Staying Focused on the Vision
2 Norfolk is…
3 Our Vision: Knowing who we are
Norfolk is an amazing place, a vibrant and historic port city where culturally diverse citizens, the military, and businesses are creating the most dynamic and authentic urban waterfront community in America
4 Vision sets the tone Priorities guide implementation
Established, September 2011
5 Commitments to Council based on Priorities
Keep financial house in order: Well-Managed Government
Address compensation: Well-Managed Government
Support neighborhood development: Safe, Healthy, and Inclusive Communities and Economic Vitality and Workforce Development
Focus on education priorities: Lifelong Learning
Implement recommendations of the Poverty Commission: Most Priorities
6 We Engaged the Community and our Employees to gather input
7 8 Worst Recession Since the Great Depression
1,000
800 8.7 million jobs recovered* 600 (through April 2014 - revised)
400 8.7 million jobs lost nationwide (January 2008 – February 2010) 200
0
-200 11.5 million jobs gained* -400 (through March 2015) -600
-800
-1,000 2007 2008 2009 2010 2011 2012 2013 2014 2015 * U.S. Bureau of Labor Statistics revised figures in February 2015 as a result of the annual benchmarking process Source: U.S. Bureau of Labor Statistics, data are seasonally adjusted. Shaded area denotes recession. 9 Virginia Gross Domestic Product is increasing slower than other states
10 Hampton Roads Economic Recovery Trailing the Commonwealth and U.S RECESSION RECOVERY IN THE U.S., VIRGINIA AND HAMPTON ROADS MEASURED BY THE PERCENTAGE OF TOTAL JOBS RESTORED, 2007-2014
Sources: Hampton Roads Planning District Commission (2015 Regional Economic Forecast) 11 Norfolk has not fully recovered from the decline in residential assessments
30.8%
20.9% 19.6% growth due to reassessment 11.9% 9.5% 8.9% 7.7% growth due to 6.7% new residential 4.8% 4.7% 3.3% 3.9% 2.6% 2.3% 2.4% 1.9% 1.9% 1.0% 1.6% 1.9% 1.0% 0.7% 0.2% -0.5%
-4.4% -4.0% -4.0% UNPRECEDENTED DECLINE 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016* * FY 2016 estimate
12 Average Homeowner’s Tax Bill
$2,600 $2,575 The Average Homeowners tax bill is projected to be $215 less in FY 2016 than $2,550 in FY 2010
$2,500
$2,450
$2,400 $2,360
$2,350
$2,300
$2,250 FY 2010 FY 2016
Note: Amounts rounded to the nearest dollar and may not sum to total due to rounding. * Based on estimate of residential assessments (including condominiums) from Real Estate Assessor 13 Cities Have Raised This Major Revenue Source to Address Budget Imbalances
Local Real Estate Tax Changes Since FY 2010 23 cents (fiscal year adopted in parenthesis) 20 cents (2014) Adopted FY 2016 Proposed Increase 16 cents 17 cents
12 cents 4 cents (2014) 10 cents 6 cents (2014) 6 cents 4 cents (2014) 3 cents 6 cents (2012) CTI – 2 cents 4 cents (2012) 3 cents NPS – 1 cent (2013, 2014) City – 1 cent (2010) Norfolk Virginia Beach Newport News Suffolk Hampton Portsmouth
14 Cities in the Commonwealth were designed to Compete
Dillon Rule State
Importance of Locally Raised Revenue to support city services
“The many governments within a single metropolitan area are almost designed to fight among themselves because state law makes them largely dependent on locally raised tax revenues...People, pies, cars, rails, and the nebulous entity known as the economy might flow seamlessly across local boundaries, but sales and property tax dollars rarely do.”
― Bruce Katz, The Metropolitan Revolution: How Cities and Metros are Fixing our Broken Politics and Fragile Economy
15 Norfolk’s Competitive Advantage – The Urban Core of the Region
Authentic Higher Center for Urban Education Commerce Experience
Arts and Neighborhood Cultural Hub Revitalization
16 Authentic Urban Experience: High Density Living
Highest in the Hampton Roads region
More than 4,500 people per square mile
Walkable Communities
Multi Modal City
17 Center for Commerce: High Concentration of Jobs
Square Miles Employment
Norfolk Norfolk
All other All other 16 16 localities localities
Hampton Roads Area Hampton Roads Area
in Square Miles = 2,907 Employment = 718,263 18 Arts and Culture - A world class destination
Attucks Theatre Botanical Garden Chrysler Museum Wells Theatre
Chrysler Hall Governor’s School Virginia Zoo McArthur Memorial
19 Neighborhood Revitalization
At its heart Norfolk is a city of neighborhoods- over 120 distinctive communities that people call home
20 One Community – 120 Neighborhoods Strong BROAD CREEK
Southside
OCEAN VIEW
Freemason Chelsea 21 22 FY 2016 Budget Highlights
Structurally Balanced – Reserves are untouched
Compensation increases for employees
Support neighborhoods across the city
Followed through on commitment to school construction, and maintained funding for Norfolk Public Schools
Continued funding for recommendations of Poverty Commission
23 Proposed FY 2016 is Structurally Balanced 6 Second consecutive year
Expenditures Revenues $809.5 $809.5 Million Million
FY 2016 Proposed Budget 24 The General Fund Budget is less than last year with level funding for Norfolk Public Schools
GENERAL FUND BUDGET NORFOLK PUBLIC SCHOOLS ON-GOING SUPPORT $817.8 Million $818 $115.9 Million $115.9 Million Level $816 $120
$814 $100
$812 $809.5 Million $80
Millions $60 $810 Millions $40 $808 $20 $806 $0 $804 FY 2015 Proposed FY 2016 FY 2015 Proposed FY 2016 25 Attract, Retain, Motivate, and Develop Employees - Phase II
Attracting The Proposed FY 2016 Budget will Provide: Employees
A step increase for sworn Police, Fire-Rescue and Sheriff employees
A two percent increase for all general employees and a three percent increase for 1000 employees in the lowest general Developing Retaining Employees ARMD Employees employee pay grades
Salary range adjustments for 45 of the city’s most regionally out-of-market classifications
An adjustment to the living wage to match the change in Motivating Federal Poverty Level Employees
A $300 supplement for eligible retirees 26 Support Neighborhoods across the city
Build On Maximize CDBG FY 2015 Budget Funds
Create Economic Increase Development Funding for Opportunities Infrastructure Throughout the City
27 Building on the FY 2015 Budget
35th Street Colley Ave / 21st Street
Five Points
Prior Corridor, Riverview Village Gateway & NBN Funding Wards Corner $2.7 Million Brambleton Ave
Berkley Campostella
East Beach Center Neighborhood North Colley Funds East Little Creek 28 Increase Funding for Neighborhood Infrastructure The Proposed FY 2016 Capital Improvement Plan builds on FY 2015 Initiatives:
planned funding for neighborhood street improvements
planned funding for neighborhood street and sidewalk repairs
planned funding for the neighborhood complete streets initiative
29 Maximize the Impact of CDBG funds in our Neighborhoods
$2.2 Million $2.2 Million
Homeowner $1.1 Million Homeowner Rehabilitation Rehabilitation $1.8 Million
Administration and Delivery $1.1 Million Administration and Delivery $400,000 30 Crisis Intervention Team (CIT)
On track to train over 200 Officers by end of FY 2015
Training Initiative will continue until all officers are trained
Norfolk Police Department has instituted the CIT roving patrol
Allows CIT trained officers to respond to calls involving psychiatric issues CIT Assessment Center is open
Will allow Police Officers to drop off patients and return to patrol
FY 2016 Proposed Budget includes $223,000 for Emergency Services Counselors, and Police overtime
31 Neighborhood Economic Development – Our Goal
Create: Thriving commercial areas Successful neighborhood businesses Equitable access to quality jobs throughout the city Through: Leveraging funding sources Innovative development strategies Supporting our entrepreneurs First Steps…..
32 Create Economic Development Opportunities throughout the City
Citywide Grow Global Norfolk Total Partnership Norfolk Initiatives Innovation Capital Pool Fund Fund Fund Fund
$250,000 $1,000,000 $250,000 $500,000 $2,000,000
FUNDED WITH:
Federal CDBG / CDBG / CDBG EDA grant Federal Match funds EDA grant from NDC funds
33 Lifelong Learning – Norfolk Public Schools
Deliver on commitment to build six new schools
CIP funding planned for Maury High School renovations
Camp Allen Provide $15 million of in-kind support to NPS Ocean View Larchmont Continue funding Norfolk Public Broad Creek Area Campostella Schools at FY 2015 Level Crossroads K-8
Commit to work with Norfolk Public Schools to develop strategies to address
its budget request 34 Lifelong Learning
35 Implementing Poverty Commission Recommendations
36 Poverty Commission – FY 2015 Recap Four Priority Areas
Early Childhood Development
Youth Education and Pathways Initial Funding $500,000 Adult Workforce Development
Neighborhood Revitalization and Support
37 Poverty Commission – Proposed FY 2016
City of Norfolk’s support is one piece of the puzzle to combat poverty
FY 2016 City and Private / Faith Based Additional City Education Non-Profit Community Funding Partners Partners Partners $250,000
38 Poverty Commission – FY 2016 and Beyond
Norfolk Plan to Reduce Poverty recommends establishing a Housing Trust Fund
Proposed FY 2016 Budget responds with:
$1.0 million in seed money to establish a Housing Trust Fund
A challenge to our community partners
39 Building on our Vision FINANCIAL
Continue streamlining Explore innovative ideas operations Eliminate BPOL Tax for new businesses with Keep real estate gross sales under tax rate flat $1.0 million Explore high-speed Eliminate $1.00 water bill internet options for administrative fee Norfolk
ECONOMIC 40 Career and Technical Education
Nothing is more important for our future
41 Career and Technical Education – How do we get there?
Federal / Private Philanthropic Local State
42 Proposed FY 2016 Budget: The Breakdown 43
Fund Proposed Budget General Fund $809,501,107 Enterprise Funds $133,696,707 Special Revenue Funds $58,319,152 Internal Service Funds $101,379,527 Total Operating Funds $1,102,896,493 Capital Improvement Plan $153,805,200 Total Operating and Capital Funds $1,256,701,693 Annual Plan for HUD Block Grants $5,346,976
Total Financial Plan $1,262,048,669 43 44