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FY 2014-2015

Proposed BudgetPublic Hearing

April 15, 2014

4/15/2014

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   Apr 15, 2014 First reading of 2014 tax rate ordinance City Manager2014 Tax Levy for Public HearingPublic Hearing on 2014-2015 City Budget  Apr 15, 2014 3nd Budget Work Session City ManagerCity Schools ReviewCity Budget Overall Review  May 13, 2014 Adoption of 2014-15 School Budget (Required by May

15th),Adoption of 2014-15 City BudgetSecond reading of 2013 tax rate ordinance City ManagerAdoption of tax rate ordinance

4/15/2014

Budget Calendar – Remaining

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Goal

Balance With

Recurring Expenses R Recurring Revenues

One-time ExpensesOne-time Revenues

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I reviewed every line item in the budget requests from departments and made recommendations to the City Manager

  Criteria for my recommendation:

◦ 1) Was increases in budget request supported by justification? And

◦ 2) Was increase in line with 6 months actuals of current year and two years prior actuals?

  The City Manager and I met with some department to discuss

and further justify their request for increase funding.

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Budget Process

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1. Maintaining Financial Integrity

2. Housing and Neighborhood Assistance (Code Enforcement)

3. Investing in Employees

4. Public Safety Building

5. Regional Communications System

6. Storm Drainage Utility

7. MIS Software

8. Recycling

9. HRWTF – Phase II

10. Economic Development

11. Teen/Family Resource Center

FY 2014 - 2015 Program Priorities

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Balanced budget by matching recurring expenditures with recurring revenues

Schools increase by $139,000 to replace grant funded positions

Maintain CSA funding increase of $1,315,000 to support mandated services

Police career development funding of $106,500

Fire career development funding of $20,000

Bus route project funding of $185,000

Human Resources salary study of $70,000

Tourism cost savings of $110,000

Funding of 7 new positions $483,100Con’t

FY 2014 - 2015 Budget Highlights

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Con’t

Comprehensive Plan funding of $150,000

Downtown Partnership continued funding of $70,000

No funding of COLA

Funding a 2.01% increase in VRS employer contributions of $272,000

No funding for increase in health care cost

FY 2014 - 2015 Budget Highlights

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FY 2014 - 2015 New Position Requests

Proposed Funded:

Department Position Salary Benefits Total

Sheriff Deputy (295) (2) $ 77,600 $ 30,000 $ 107,600

City Manager Assistant City Manager 90,000 24,000 114,000

Public Works Construction Manager 70,000 20,200 90,200

Public Works Street Maintenance Specialist (1) 35,000 15,700 50,700

Planning Property Maintenance Inspector 34,500 14,000 48,500

PoliceAdministration Sergeant/Accreditation 54,000 18,100 72,100

Totals $ 361,100 $ 122,000 $ 483,100

Proposed Un-funded:

Parks and Recreation General Manager of Recreation $ 62,900 $ 19,800 $ 82,700

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COLA/Bonus Projected Costs

1% 2% 3%

Gen'l Government Employees $ 139,000 $ 278,000 $ 417,000

Constitutional Employees 11,500 23,000 34,500

Social Service Employees 22,500 45,000 67,500

School Employees 314,000 628,000 942,000

Total $ 453,000 $ 906,000 $ 1,359,000

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Scenarios for COLA Increases

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COLA &

Salary# of Emp

# of Emp Total Current Benefits

1 % All vs. Cap

Levels Under Over Salaries Benefits 1% Salary 1% Benefits 1% 2% 3% Differences

$50,000 210 96 $ 7,826,281 $ 1,453,814 $ 78,263 $ 14,538 $ 92,801 A $ 185,602 $ 278,403 $ 23,194

$60,000 245 61 9,742,626 1,809,792 97,426 18,098 115,524 B 231,048 346,573 13,988

$75,000 279 27 11,937,515 2,217,516 119,375 22,175 141,550 C 283,101 424,651 7,349

$80,000 281 25 12,092,642 2,246,331 120,926 22,463 143,390 D 286,779 430,169 5,806

$100,000 296 10 13,411,445 2,491,313 134,114 24,913 159,028 E 318,055 477,083 2,026

All 14,582,318 2,708,815 145,823 27,088 172,911 345,823 518,734

$50,000 Cap 96 4,800,000 891,648 48,000 8,916 56,916 A 113,833 170,749

$60,000 Cap 61 3,660,000 679,882 36,600 6,799 43,399 B 86,798 130,196

$70,000 Cap 27 2,025,000 376,164 20,250 3,762 24,012 C 48,023 72,035

$80,000 Cap 25 2,000,000 371,520 20,000 3,715 23,715 D 47,430 71,146

$100,000 Cap 10 1,000,000 185,760 10,000 11,858 E 23,715 35,573

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FY 2014 -15 Schools Additional Funding Request

Proposed Funded:

Position Salary Benefits Total

Math Specialist (Grant Expired) $ 58,800 $ 13,000 $ 71,800

Transitional Data Specialist (Grant Expired) 54,600 12,100 66,700

Totals Position Funding $ 113,400 $ 25,100 $ 138,500

Proposed Un-funded:

Reading Specialist (New) 48,100 10,700 58,800

3% COLA and Step Adjustments $ 935,731

Total Un-funded $ 994,531

Total FY 2015 Request $ 1,133,031

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Tax Rate Increase Required to Fund School's FY 2015 Un-funded Request

One penny tax increase equals approximately $ 130,000

Schools un-funded requested increase for FY 2015 $ 994,531

Divided by one penny factor 130,000

Tax increase required to fund Schools Budget Request $ 0.08

8 Cent Tax Increase

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General Fund recurring Revenues $ 45,278,000

General Fund recurring Expenditures $ 45,058,000

General Fund One-time Expenditures $ 220,000

Total General Fund Expenditures $ 45,278,000

Capital Fund $ 5,086,000

Summary

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Comparison of General Fund Expenditure Budget to Prior Year's Budget

FY 2013 - 14 vs. FY 2014 - 15 Totals

Operating $ 43,973,000 $ 45,278,000 $ 1,305,000

Osage Projects 1,853,000 - (1,853,000)

Totals $ 45,826,000 $ 45,278,000 $ (548,000)

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FY 2014 Reoccurring Revenue Budget $ 43,973,000

RE Taxes ($0.06 increase) 780,000

Public Service Corp Taxes 381,800

Personal Property 238,000 M&T Taxes (New plant Taxes pending) -

Consumption Tax (100,000)

Combined (increases/decreases) 5,200

Net Change 1,305,000

FY 2015 Proposed Revenue Budget $ 45,278,000

4/15/2014

Summary of Budget Changes from FY 2014 to FY 2015

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Summary of Budget Changes from FY 2014 to FY 2015FY 2013 Reoccurring Expenditures Budget $ 43,973,000

Combined Department Increase/(Decreases) $ 214,292 Bus Route Project 185,000

Tourism Outsource Savings (194,000)

Tourism Support 84,000

Assistant City Manager Benefits 25,000 Police Career Development 106,500

Fire Career Development 20,000

HR Salary Study 70,000 COLA - 2.01% increase in VRS employer contributions 272,000 Comprehensive Plan 150,000 Schools to replace grant funded positions 139,000 Funding New Positions 393,100 Net Change 1,464,892

Proposed 2015 Expenditure Budget $ 45,278,000

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CAPITAL FUND $5,086,000

Debt Service - $3,777,500

Equipment - $571,500

Capital Projects - $737,000,

Total Projects - $1,308,500

$800,000 transferred from I-295 proceeds for capital projects in FY 2014-2015.

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Sheriff - $ 60,000Police cars with equipment

Police - $ 230,000Police cars with equipment

Fire - $ 32,000Heavy Duty Truck to tow Rescue/EOC Trailer

Public Works - $ 557,000Street Paving Funding Vehicle replacement (5)Street Lighting

Recreation - $200,000Heating coilCommunity Center Roof Playground/Park Renovation2 Vans (match) Replace Exercise Equip.Replace Shelter Roof to MetalMarquee Sign Replace Chairs and Tables

Information Technology - $50,000Continues our existing replacement program Planning - $100,000Chapter 19 Violations Building Demolition New Plotter/Printer  

Treasurer - $9,500 Printer

Capital Projects - $1,308,500

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Requests FY 2015

Revenues:

Fund 071 Revenues $ 2,865,500

Transfer from GF(011) $ 2,220,500

Total Revenues $ 5,086,000

Expenditures:

Debt Service $ 3,777,500

IT Servers, PC and Other Equipment 50,000 Sheriff Vehicles 60,000 Police Admin Vehicles 70,000

Printer 5,000 Command Radio - Patrol Vehicles 155,000

Fire Heavy Truck to tow Rescue/EOC Trailer 32,000

City of Hopewell

Capital Projects Fund (071) Request for FY 2015

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Public Works Pavement Repair 350,000

Street Lighting Improvements 20,000

Dump Truck 52,000

Pickup Truck (Asphalt) 32,000

Pickup Truck (Traffic) 25,000

Stake Body Truck 53,000

Pickup Truck (Construction) 25,000 187,000

Recreation Heating Coil 13,000

Community Center Roof 75,000

Playground/Park Rnovation 25,000

Replace Excerise Equipment 10,000

Shelter Roofs to metal 20,000

Replace 2 Vans 20%match 24,000

Replace Lifeguard Stand 16,000

Update Marquee sign 15,000

Annual replacement of table & chairs 2,000 200,000

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Capital Projects con’t

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Capital Projects con’t

Treasurer Printer 9,500

Other D/T Partnership Funding 70,000

Chapter 19 Violations 25,000

Neighborhood Services Code Demolition Bldgs 50,000

New Plotter/Printer 25,000

Sub-total of Projects $ 1,308,500

Total Expenditures $ 5,086,000 Surplus/(Deficit) -

Major Project

Police Communication System $ 2,500,000

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CCHASM - The Chesterfield-Colonial Heights Alliance for Social Change

FY 2015 Additional Un-funded Requests for Consideration

Historic Hopewell Foundation Increase $ 18,000

CCHASM 5,000

Economic Development Line Item 100,000

Downtown Partnership match for July 4th 30,000

3% Bonus for City Employees cap $75,000 424,651

3% Bonus for Schools cap $75,000 est. 838,380

$500 per Council Communication Budget 3,500

Gateway Landscaping 3,000

Total $ 1,422,531

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SUMMARY OF REVENUES      SPECIAL     CAPITAL

    GENERAL REVENUE SCHOOL ENTERPRISE PROJECTSREVENUES TOTAL FUND FUNDS FUNDS FUNDS FUNDS

Ad Valorem Taxes-- Real Estate 14,775,000 14,775,000 0 0 0 0-- Machinery & Tools 4,759,700 4,759,700 0 0 0 0-- Personal Property 4,563,000 4,563,000 0 0 0 0-- Public Service Corporation 3,797,000 3,797,000 0 0 0 0-- Penalities & Interest 300,000 300,000 0 0 0 0

Subtotal Property Taxes 28,194,700 28,194,700 0 0 0 0Other Taxes-- Sales Tax 1,917,000 1,917,000 0 0 0 0-- Utility Tax 1,700,000 1,700,000 0 0 0 0-- Business License Tax 1,650,000 1,650,000 0 0 0 0-- Motor Vehicle License 360,000 360,000 0 0 0 0-- Bank Tax 120,000 120,000 0 0 0 0-- Recordation /Deeds Tax 120,000 120,000 0 0 0 0-- Meals & lodging Tax 2,550,000 0 0 0 0 2,550,000

Subtotal Other Taxes 8,417,000 5,867,000 0 0 0 2,550,000Intergovernmental Revenues-- State Revenues 36,659,403 6,316,500 3,374,000 26,968,903 0 0-- Federal Revenues 8,731,927 318,600 2,061,200 6,352,127 0 0Permits and Fees 86,500 86,500 0 0 0Fines and Violations 1,701,800 1,701,800 0 0 0Use Money & Property 64,500 47,000 3,500 4,000 0 10,000Operating Revenues 24,574,000 0 0 24,574,000 0In-Lieu of Taxes 1,261,100 1,261,100 0 0 0Other Revenues 7,356,370 600,300 382,600 6,067,970 0 305,500

Total Revenues 117,047,300 44,393,500 5,821,300 39,393,000 24,574,000 2,865,500Transfers from Other Funds 18,206,500 884,500 2,622,500 12,479,000 0 2,220,500Bond Proceeds 0 0Fund Balance Use 1,562,500 0 311,500 0 1,251,000 0

Total Resources 136,816,300 45,278,000 8,755,300 51,872,000 25,825,000 5,086,000

Less Transfers from Other Funds (18,206,500) (884,500) (2,622,500) (12,479,000) - (2,220,500)

Total Resources net of Transfers $118,609,800 $44,393,500 $6,132,800 $39,393,000 $25,825,000 $2,865,500

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EXPENDITURES SUMMARY ALL FUNDS- FY 14-15      SPECIAL     CAPITAL

PROGRAMS/   GENERAL REVENUE SCHOOL ENTERPRISE PROJECTSDEPARTMENTS TOTAL FUND FUNDS FUNDS FUNDS FUNDS

Legislative $ 364,000 $ 364,000

Constitutional Offices/Courts 5,665,900 5,665,900

Administration 39,248,100 39,248,100

-- Social Services 3,775,000 - 3,775,000 - - -

-- Comprehensive Services 2,990,000 - 2,990,000 - - -

-- Parks & Recreation 1,645,900 - 1,645,900 - - -

-- Harbor Master/Marina 14,400 - 14,400 - - -

-- CDBG - - - - - -

-- Self Insurance 290,000 - 290,000 - - -

-- Anti-Litter 5,000 - 5,000 - - -

-- Cemetery 35,000 - 35,000 - - -

-- School Board 51,872,000 - - 51,872,000 - -

-- Solid Waste 2,123,000 - - - 2,123,000 -

-- Sewer Services 6,347,000 - - - 6,347,000 -

-- HRWTF 17,355,000 - - - 17,355,000 -

-- Capital Projects/Debt 5,086,000 - - - - 5,086,000

-- Economic Development - - - - - -

Total Expenditures $ 136,816,300 $ 45,278,000 $ 8,755,300 $ 51,872,000 $ 25,825,000 $ 5,086,000

Less: Transfer to Other Funds $ (17,821,500) (16,875,000) (62,000) - (884,500) -

Total Net Expenditures $ 118,994,800 $ 28,403,000 $ 8,693,300 $ 51,872,000 $ 24,940,500 $ 5,086,000

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GENERAL FUND REVENUES            14-15 14-15  ACTUAL ACTUAL BUDGET YTD PROJECTED DEPT CITY MGR

REVENUES 11-12 12-13 13-14 03/31/14 06/30/14 BUDGET BUDGETAd Valorem Taxes-- Real Estate $13,331,618 $ 14,088,675 $13,995,000 $6,575,832 $ 13,995,000 $14,385,000 $14,775,000-- Machinery & Tools 4,202,779 5,797,880 4,759,700 2,395,007 4,759,700 4,759,700 4,759,700-- Personal Property 3,802,833 4,071,047 4,325,000 269,599 4,325,000 4,563,000 4,563,000 Less State Tax Relief -1,618,029 (1,618,030) -1,618,000 (1,618,000) 0 0-- Public Service Corporation 3,420,799 3,391,300 3,415,000 229,237 3,415,000 3,797,000 3,797,000-- Penalties & Interest 308,681 686,766 300,000 117,105 300,000 300,000 300,000

Subtotal Property Taxes 23,448,681 $ 26,417,638 25,176,700 9,586,780 25,176,700 27,804,700 28,194,700Other Taxes-- Sales Tax 1,921,273 $ 1,989,128 1,917,000 683,933 1,917,000 1,917,000 1,917,000-- Utility Tax 1,681,833 1,687,740 1,800,000 806,150 1,800,000 1,700,000 1,700,000-- Business License Tax 1,568,561 1,738,830 1,650,000 32,240 1,650,000 1,650,000 1,650,000-- Motor Vehicle License 340,833 354,759 360,000 47,985 360,000 360,000 360,000-- Franchise Fee 0 4,200 0 0 0 0 0-- Bank Tax 121,065 106,048 120,000 0 120,000 120,000 120,000-- Recordation/Deeds Tax 114,494 148,591 120,000 77,394 120,000 120,000 120,000-- E911 Wireless 0 - 0 0 0 0 0

Subtotal Other Taxes 5,748,059 $ 6,029,296 5,967,000 1,647,702 5,967,000 5,867,000 5,867,000Intergovernmental Revenues-- State Funding 7,734,806 $ 8,026,122 $ 7,974,293 4,397,199 $ 7,974,293 6,316,500 6,316,500-- Federal Funding 720,027 590,568 485,193 172,062 485,193 318,600 318,600Permits and Fees 96,885 120,108 88,500 59,058 88,500 86,500 86,500Fines and Violations 1,866,202 1,544,561 1,701,800 669,337 1,701,800 1,602,692 1,701,800Use Money & Property 69,799 76,366 47,000 23,784 47,000 47,000 47,000In-Lieu of Taxes 29,475 1,220,167 1,261,100 0 1,261,100 1,261,100 1,261,100Other Revenues 722,536 737,928 642,968 435,268 642,969 600,300 600,300

Total Revenues 40,436,470 $ 44,762,754 43,344,554 16,991,190 43,344,555 43,904,392 44,393,500Transfers from Other Funds 884,500 884,500 884,500 191,250 884,500 884,500 884,500Fund Balance Appropriated   - 1,853,000   1,853,000 0 0

Total Resources 41,320,970 $ 45,647,254 46,082,054 17,182,440 46,082,055 44,788,892 45,278,000Less Transfers from Other Funds -884,500 (884,500) -884,500 -191,250 -884,500 -884,500 -884,500

TOTAL NET RESOURCES $40,436,470 $44,762,754 $45,197,554 $16,991,190 $ 45,197,555 $43,904,392 $44,393,500

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GENERAL FUND EXPENDITURES            14-15 14-15  ACTUAL ACTUAL BUDGET YTD PROJECTED DEPT CITY MGR

DEPARTMENT/PROGRAM 11-12 12-13 13-14 03/31/14 6/30/14 BUDGET BUDGETLegislative-- City Council $162,491 $ 122,648 $111,000 $54,867 $111,000 $111,000 $111,000-- City Clerk 67,997 70,130 62,000 28,901 62,000 62,000 67,000-- City Attorney 209,018 240,194 173,000 104,336 173,000 175,750 186,000

Total Legislative 439,506 $ 432,972 346,000 188,104 346,000 348,750 364,000Constitutional Offices/Courts-- Clerk of Circuit Court 267,474 $ 292,772 290,000 132,216 290,000 316,534 297,000-- Commonwealth Attorney 394,168 423,775 415,000 208,642 415,000 450,645 439,000-- Commissioner of Revenue 249,682 298,865 310,000 149,217 310,000 324,719 324,000-- City Treasurer 281,248 293,810 293,000 145,622 293,000 340,940 331,000-- City Sheriff 1,118,528 1,085,430 1,080,000 578,294 1,080,000 1,162,848 1,144,000

Total Constitutional 2,311,100 $ 2,394,652 2,388,000 1,213,991 2,388,000 2,595,686 2,535,000-- Circuit Court 34,215 $ 51,433 70,000 21,911 70,000 70,000 72,000-- General District Court 68,335 65,064 55,000 35,359 55,000 56,000 58,900-- Court Services 6,163 5,818 7,000 2,968 7,000 7,000 7,000-- VJCCCA Grant 153,608 148,290 147,000 81,987 147,000 147,290 150,000-- Crater Detention Center 280,900 260,171 252,000 93,592 252,000 252,000 252,000-- Riverside Regional Jail 2,551,320 2,397,560 2,453,000 1,176,480 2,453,000 2,453,000 2,453,000

Total Courts/Detention 3,094,541 2,928,336 2,984,000 1,412,297 2,984,000 2,985,290 2,992,900-- City Manager Office 244,155 241,635 246,000 155,984 246,000 234,000 324,000

Economic Development Office 234,795 262,110 312,600 121,203 312,600 320,522 0 Intergovernment Affairs 79,002 69,750 90,000 41,946 90,000 90,000 92,000 Human Resources 250,324 238,231 260,000 119,661 260,000 310,000 344,000-- Electoral Board/Registrar 130,869 134,414 135,000 56,775 135,000 135,000 138,000-- Finance 1,202,098 1,254,982 1,211,000 609,422 1,211,000 1,307,700 1,259,000-- Development 564,978 560,557 587,400 292,456 587,400 1,067,684 766,500-- Police 5,158,882 5,207,711 5,245,000 2,496,859 5,245,000 5,452,117 5,598,000 Victim-Witness Grant 87,135 74,079 114,000 29,369 114,000 114,000 114,000-- Fire 2,636,690 2,641,649 2,829,000 1,240,628 2,829,000 2,901,100 2,999,000-- Public Works 3,411,534 3,538,216 3,785,000 1,305,823 3,785,000 5,187,800 3,880,600-- Health/Outside Agencies 1,288,595 1,339,033 1,293,000 836,921 1,293,000 1,366,500 1,658,000-- Non-Departmental 4,473,420 4,509,381 4,433,000 2,379,768 4,433,000 4,619,000 4,891,000-- Transfers 15,796,513 17,648,662 19,120,000 1,306,530 19,120,000 16,986,000 17,322,000-- Contingency/COLA/Health Ins 0 447,000 0 447,000 0 0

Total Expenditures $41,404,137 $43,476,370 $45,826,000 $13,807,737 $45,826,000 $46,021,149 $45,278,000-1,795,650 -1,961,599 -1,247,650

Less: Transfers to Other Funds -15,271,844 -4,509,381 -19,120,000 -1,306,530 -19,120,000 -16,986,000 -17,322,000

Total Net Expenditures $24,446,895 $38,966,989 $26,706,000 $12,501,207 $26,706,000 $29,035,149 $27,956,000

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What next?

Incorporate discussion from tonight’s meeting.

Adopt Budget on May 13, 2014