Efficiencies Gained in State and Local Government: How Localities Are Dealing with Change Steven A. Solomon Director of Finance Prince William, VA May 24, 2013
VGFOA 2013 Virginia 2013 Spring State Conference and Local Government Virginia Beach Day 2
Prince William Facts Population: 2010 Census 402,002 (Apr. 1, 2010) Latest estimate 415,912 (December 31, 2012) Adults with college degree, 2011: 46.0% Labor force, December 2012: 234,017 Unemployment rate, December 2012: 4.5% (State: 5.4%) At-place employment: 113,513 (2nd Qtr. 2012) 4.6% increase y-o-y Median Household Income, 2011: $95,146 (ranked 7th in U.S.) (region: $86,680) One-way average commute, 2011: 40.5 minutes (up from 38.0 minutes in 2010) Percent of labor force working outside of, 2011: 64.4% Average assessed house value, 2012: $274,403 Average Sale Price of a Home: $306,153 (January 2013 11.2% increase y-o-y) Fauquier Loudoun VIRGINIA 66 Fredericksburg Spotsylvania Wash./Dulles Int. Airport Frederick Prince William Stafford Fairfax Fairfax Manassas Pk. Manassas 95 Montgomery 270 495 70 Arlington Falls Co. Church 395 Alexandria Howard WASH. D.C. 395 95 Reagan Nat. Airport Charles 95 Baltimore- Washington Int. Airport Prince George s 195 695 Anne Arundel 97 MARYLAND Calvert VGFOA 2013 Spring Conference Virginia Beach 3
CY84, FY86 CY86, FY88 Prince William Annual Percentage Change in Real Estate Assessments with Projections CY88, FY90 CY90, FY92 CY92, FY94 CY94, FY96 CY96, FY98 CY98, FY00 CY00, FY02 CY02, FY04 CY04, FY06 CY06, FY08 CY08, FY10 CY10, FY12 CY12, FY14 CY14, FY16 CY16, FY18 30% 25% 27.20% 20% 15% CY1984-2012 Average Residential Appreciation 17.47% 10% 5% 0% -5% -10% 5.24% 2.77% 4.70% 3.50% 3.50% 3.50% 3.50% -15% -20% -25% -30% -35% Actual Residential Appreciation Avg. 4.4%: with Forecast, 4.3% FY14-18 Forecast CPI (Balt/Wash metro area), Avg. 3.1% -14.82% -29.80% CY of Value, FY of Revenue VGFOA 2013 Spring Conference Virginia Beach 4
Prince William Budget Cuts During the Recession 328 Positions $143.4 Million in 5-year plan reductions VGFOA 2013 Spring Conference Virginia Beach 5
PWC 2006 Referendum Voters Approve Bond Projects By Large Margin Roads 81.9% Parks 75.9% Libraries 72.1% 0% 20% 40% 60% 80% 100% Source: Prince William Office of Voter Registration and Elections VGFOA 2013 Spring Conference Virginia Beach 6
Time Pressures Growth Interest Rates Capital Costs 2006 Bond Referendum VGFOA 2013 Spring Conference Virginia Beach 7
Debt Service Capacity Only Source: Treasury Management Division, PWC Dept. of Finance CIP Debt Service Existing Debt Service VGFOA 2013 Spring Conference Virginia Beach 8
Debt Service Capacity Schools Only Source: Treasury Management Division, PWC Dept. of Finance CIP Debt Service Existing Debt Service VGFOA 2013 Spring Conference Virginia Beach 9
Debt Savings Triple AAA Bond Rating $35 million saved since 2010 on refundings -wide monthly CIP Meetings Just-in-time Debt Issuance VPSA Stand-Alone Issuance VGFOA 2013 Spring Conference Virginia Beach 10
Use Developing Tourism Zone brings in Commonwealth Funds Federal & State Funds for Roads and Parking Garage Proffers for Libraries Developers Fees VGFOA 2013 Spring Conference Virginia Beach 11
Procurement Efficiencies Public / Private Partnerships PPEA PPTA Design / Build VGFOA 2013 Spring Conference Virginia Beach 12
Shift Funds From Operating to Capital Budget Movement of Funds to Agencies Most Affected by Population Growth Base Budget Reviews Turn-back History Review Update Shared Service and Inter-jurisdictional Agreements Annually for Proper Cost Allocation VGFOA 2013 Spring Conference Virginia Beach 13
Shift From Operating to Capital Budget (continued) Annual Close-out and Sweep of CIP Maximizing Agency Revenue Reduces Need for General Fund Support Annual Review of Reserve Funds Create Replacement Funds Allows for Purchase vs. Lease Provides Resources for Large Capital Expenditures VGFOA 2013 Spring Conference Virginia Beach 14
Change Management of Information Technology Information Technology Steering Committee Budget for Full Project Costs 5-Year Plan Monitor and Reallocate Resources Upgrade Network Backbone to Accommodate Growth VGFOA 2013 Spring Conference Virginia Beach 15
Consolidate Organizations - Parks GASB No. 69 Direct Governance Economies of Scale Volume Discounts Common Systems Joint Projects More Efficient Regulation and Performance Management VGFOA 2013 Spring Conference Virginia Beach 16
Landfill as a Source of Funds E-4 Methane Energy Alternative Energy Fee Structure Recycling for Cash VGFOA 2013 Spring Conference Virginia Beach 17
Questions? Steven A. Solomon Director of Finance Prince William, VA SSOLOMON@PWCGOV.ORG VGFOA 2013 Spring Conference Virginia Beach 18