CITY MANAGER S PROPOSED BUDGET FY 2019

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1 City Manager s Proposed FY 2019 Operating and Capital Improvement Budget March 5, 2018 CITY MANAGER S PROPOSED BUDGET FY

2 GFOA Distinguished Budget Presentation Award Government Finance Officers Association (GFOA) has awarded the City of Charlottesville Distinguished Budget Presentation Award for its Fiscal Year 2018 budget. 25 th time that Charlottesville has won this award, and the 16th consecutive budget award. Reflects the commitment of Council and staff to meeting the highest principles of governmental budgeting. In FY 2018, the City scored Proficient and Outstanding in every single category, a rating of 100%, and the second year we have accomplished this! 2

3 FY 2019 Leadteam Budget Review Team (LBRT) Leslie Beauregard Galloway Beck Chris Cullinan Mike Murphy Paul Oberdorfer Budget Office Staff Ryan Davidson Maya Kumazawa 3

4 Major Budget Themes Strong Support for City Schools Preserving and Enhancing Quality Services Affordable Housing Investment Focus on Organizational Efficiencies Strategic Plan and Council Priorities Maintains Real Estate Tax Rate 4

5 THE DETAILS 5

6 Percent Change General Fund Budget 14.00% 12.00% 10.00% 8.00% 12.08% FY 2019 Proposed Budget: $ 179,342, % 4.00% 2.00% 0.00% 7.51% 4.70% 1.03% 1.82% 2.07% 1.30% 1.74% 3.75% 3.60% 5.95% 4.48% -2.00% -1.19% FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 6

7 FY 2019 Revenue Projections Real estate assessments growing at modest pace Continue to see City development and growth Meals and Sales tax revenue are projected to see a decrease from FY18 Other areas of economy are performing well, such as lodging and personal property taxes Revenue that is diverse and well balanced 7

8 FY 2019 General Fund Revenues General Fund Revenues Misc. Revenue 0.7% Carryover Funds 0.6% Transfers From Other Funds 1.4% City/County Revenue Sharing (Operating Budget) 6.0% Charges for Services 7.1% Intergovernmental Revenue 8.5% Licenses and Permits 5.7% Local Taxes 69.9% 8

9 FY 2019 Revenue Projections Real Estate $75,000,000 Real Estate Taxes $70,000,000 $65,000,000 $60,000,000 $55,000,000 $50,000,000 FY 19 Projection: $68.2M 2015 Actual 2016 Actual 2017 Actual 2018 Original Budget 2018 Revised Budget 2019 Budget 9

10 FY 2019 Revenue Projections Personal Property $9,500,000 Personal Property Tax FY 19 Projection: $8.6M $9,000,000 $8,500,000 $8,000,000 $7,500,000 $7,000,000 $6,500, Actual 2016 Actual 2017 Actual 2018 Original Budget 2018 Revised Budget 2019 Budget 10

11 FY 2019 Revenue Projections Sales and Use $13,000,000 Sales and Use Tax $12,500,000 $12,000,000 $11,500,000 $11,000,000 $10,500,000 $10,000,000 FY 19 Projection: $11.3M 2015 Actual 2016 Actual 2017 Actual 2018 Original Budget 2018 Revised Budget 2019 Budget 11

12 FY 2019 Revenue Projections- Meals $13,500,000 $12,500,000 $11,500,000 $10,500,000 $9,500,000 $8,500,000 Meals Tax FY 19 Projection: $11.7M $7,500, Actual 2016 Actual 2017 Actual 2018 Original Budget 2018 Revised Budget 2019 Budget 12

13 FY 2019 Revenue Projections Transient Occupancy (Lodging) $5,700,000 Transient Occupancy Tax $5,200,000 $4,700,000 $4,200,000 $3,700,000 $3,200,000 $2,700,000 FY 19 Projection: $5.1M 2015 Actual 2016 Actual 2017 Actual 2018 Original Budget 2018 Revised Budget 2019 Budget 13

14 FY 2019 General Fund Expenditures Schools are the largest portion of 32.8% Local Contribution to Schools 32.8% Management 3.4% Non Departmental 0.5% Debt Service Payment 5.2% Public Safety and Justice 25.0% Infrastructure and Transportation 8.7% Healthy Families and Community 17.9% Fund Balance Target Adjustment 0.3% Employee Compensation and Training 0.7% Financial Services 2.9% Internal Services 2.7% 14

15 Strategic Plan Alignment with Budget The FY 2019 Proposed Budget illustrates the alignment between the allocation of resources and the strategic plan goals and objectives. This is done for both new funding initiatives and existing ones that are in place and ongoing. Throughout the presentation, icons indicate alignment between strategic plan goals and departments/programs. 15

16 Council Priority: Affordable Housing $3.4 million in the CIP for the Charlottesville Affordable Housing Fund $500,000 in the CIP for Public Housing Redevelopment $70,000 in new funding for the Charlottesville Housing Affordability Program (CHAP) Increase grant amounts from $525 to $625 for taxpayers with household income of $0-$25,000 Increase grant amounts from $375 to $450 for taxpayers with household income of $25,001-$50,000 16

17 Council Priority: Race and Equity $500,000 is included in the City Council Strategic Initiatives Fund for the African American Heritage Center at the Jefferson School $38,000 is budgeted for the Office of Human Rights to convert an existing Community Outreach position to full-time status 17

18 Council Priority: Workforce Development & Economic Development $72,000 is budgeted for a new Minority Business Development Coordinator to focus on efforts to increase City procurement with small, women and minority owned businesses During FY 18, a Minority Business Procurement Coordinator was added The FY 19 Budget includes these programs: $187,839 for the Downtown Job Center $121,726 for the Summer Community Attention Youth Internship Program (CAYIP) GO Programs (TBD) 18

19 Council Priority: Safety and Security $94,000 in the CIP for Downtown Pedestrian Intersection Lighting In FY 18, City Council established a fee schedule for EMS vehicle transport services FY 19 is the first full year of this program, and is budgeted at approximately $1.05 million. There is corresponding revenue for this program in the amount of $1.4 million. 19

20 Funding for Our Schools Total operating contribution of $54.0M in FY 19 Increase of $2.7M, a 5.2% increase, the largest single increase in the total City General Fund budget Capital Improvement Program: $1.0M for school strategic improvements 20

21 Compensation and Benefits 3% salary increase on July 1 = $1.4M Health care costs (3.5% per employee increase) $270,000 increase in City contribution Fully funds City s requirement towards its retirement fund = $9.4 million contribution Compression Adjustments as a result of the FY 18 Living Wage increases = $160,000 21

22 City Council Strategic Initiatives $100,000 in the City Council Strategic Initiatives Fund will be used to fund a pilot Participatory Budgeting initiative. $225,000 will be used to fund two new positions and two reclassifications for the following staff: Reclassify Chief of Staff / Clerk of Council Reclassify Administrative Assistant to Chief of Staff New position - Research & Development / Policy New position - Community Engagement / Media Relations 22

23 Department Additions and Service Enhancements $122,000 - Assistant City Attorney to provide support for the legal representation of City departments, commissions and elected officials. $100,000 NDS Efficiency Study to fund a support, planning, or engineering position in the department. 23

24 Department Additions and Service Enhancements $116,000 2 FTEs in the Parks and Recreation Department to support the new Skatepark. $50,000 Proactive tree maintenance and management at City parks, schools, and public rights of way. 24

25 Budget Changes and Efficiencies Change outdoor pools operating hours from 11am 7pm all season for savings of $28,000 Washington Park Pool Onesty Family Aquatic Center M-F 11-8 Sat 10-8 Sun 11-8 M-F 10:30-8 Sat 10-8 Sun 10-7 New hours: 11-7 New hours:

26 Budget Changes and Efficiencies Public Works is eliminating funding for vacant positions Public Service Administration - Maintenance Worker III Public Service Traffic - Maintenance Worker III Public Service Streets and Sidewalks - Maintenance Worker III $282,000 in Savings Public Service Streets and Sidewalks - Maintenance Worker III Fleet Maintenance - Auto Mechanic III (fixed fees to GF departments) 26

27 Budget Changes and Efficiencies 17 hours/day 6AM 11PM Mon-Fri 13 hours/day 7AM 8PM Mon-Fri Charlottesville Area Transit will reduce service on Route 9 (YMCA) due to general lack of ridership on this portion of the route, which was added in FY 18. Sunday service will remain the same. Savings of approximately $63,

28 Outside and Nonprofit Agencies Includes $250,000 as a reserve intended to support arts and culture planning and coordination Increases contractual agency funding by $200,000, including regional jail, juvenile detention center, the library system, the emergency communications center, and paratransit services 28

29 Other Expenditure Changes General Fund transfer to the Debt Service fund is increasing by $592,788 General Fund contribution to the CIP is increasing by $209,602 $2.2 million from the CIP Contingency Fund will be used to help cash fund capital projects 29

30 Capital Improvement Program Highlights Charlottesville Affordable Housing Fund = $3.39 million Public Housing Redevelopment = $500,000 Schools Capital Improvements = $2.91 million West Main Street Improvements Project = $3.25 million Undergrounding of Utilities = $1.30 million New Sidewalks and Sidewalk Repair = $804,360 Tonsler Park Master Plan Implementation = $750,000 Cultural Landscape Study = $50,000 SIA Implementation = $250,000 Economic Development Strategic Initiatives = $150,000 Fire Replacement Apparatus = $1.29 million Downtown Pedestrian Intersection Lighting = $94,000 30

31 Budget Calendar March 7: Worksession, 5pm 7pm, City Space, Revenues and Expenditures Public invited. Opportunity for Council discussion with staff. Public comment at end. March 15: Worksession, 5pm 7pm, City Space, Capital Improvement Program Public invited. Opportunity for Council discussion with staff. Public comment at end. March 19: Public Hearings, 6:30pm, City Council Chambers, City Hall Real Estate Tax Levy and Proposed Budget (Public Hearing advertised for 7:00 PM) Smaller presentation with opportunity for public feedback and Council discussion March 28: Community Budget Forum, 6pm, City Space Opportunity for public to speak one on one with City Council and staff after short presentation by the City Manager. 31

32 Budget Calendar March 29: Worksession, 5pm 7pm, City Space, Outside and Nonprofit Agencies Public invited. Opportunity for Council discussion with staff. Public comment at end. April 2: Second Public Hearing on Budget/First Reading, 6:30pm, City Council Chambers, City Hall Smaller presentation with opportunity for Public feedback and Council discussion April 5: Worksession, 5-7pm, City Space, Budget Wrap-Up Public invited. Opportunity for Council discussion with staff. Public comment at end. April 10: Budget approval by City Council, 5:30pm, 2nd Floor Conf Room, City Hall 32

33 Budget Information Copies of FY 2019 Proposed Budget City Manager s Office, City Hall, 8:00-5:00 PM M-F Central and Gordon Ave. Library Branches 33