Overview

City of Norfolk Community Outreach Program for FY 2013

The FY 2013 budget process continues to build on the principle of establishing a Well-Managed Government: establishing a data-driven organization which provides effective and efficient City programs and services that are responsive, accountable, inclusive and customer focused.

The City of Norfolk values feedback from residents in developing a foundation for a well managed government. The current economic backdrop provides an opportunity for building community understanding of the fiscal challenges facing Norfolk so that, through resident input, spending priorities, service delivery strategies, and savings strategies may be determined. To achieve this understanding and promote meaningful dialogue, multiple forums are available. During the month of January, five Community Conversations will be held in locations throughout the city. In addition, an online public forum will be available through the city’s website as well as mail-in “Community Input” forms that are available at libraries, recreation centers, and City Hall.

City of Norfolk Priorities Under Discussion

• Accessibility, Mobility & Connectivity • Economic Vitality and Workforce Development • Environmental Sustainability • Lifelong Learning • Safe, Healthy and Inclusive Communities • Well Managed Government

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FY 2012 Budget Overview Real estate taxes are the single largest local revenue source. Due to the lag in property assessments vs. market activity, the decline in the housing market in 2009 was not reflected in real estate assessments until FY 2011. That lag continues into FY 2012.

11.410.68.1 8.7 9 9.5 8.6 8.7 9 7.8 6.7

3.72.2

0.5 1 0.82.2

3.5 3.2 4 4.7 5.97.5

10.5

16.8

24.9

17.5

5.82.6

-3.1-0.3

-3.5

-10-505

1015202530

19811982198319841985198619871988198919901991199219931994199519961997199819992000200120022003200420052006200720082009201020112012

• The last time the real estate tax rate changed was in FY 2008, from $1.27 to $1.11.

• In FY 2008, the average homeowner paid $2,490 in real estate taxes

• In FY 2012, the same homeowner will pay $2,350, saving the homeowner $140.

• Each penny of the real estate tax rate is equal to $1.6 million in revenue to the city.

• If the real estate tax rate was increased by 1-cent increase in FY 2012, the average tax bill for the same homeowner would be an additional $2.50 more per month.

Annual Percentage Change in Real Estate Assessments (fiscal year)

Other Local Taxes19.0%

Other Local Revenues

8.5%

Federal Aid1.6%

Other Sources & Transfers

3.8%

Revenue from the Commonwealth

36.1%

General Property Taxes31.1%

Non-Locally Generated Revenue

$299,658,900 (37.7%)

Revenue from Local Sources

$465,418,300 (58.5%)

Real Estate Tax24.9%

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General Fund Expenditures—How each dollar is used

Education 37¢

PublicSafety

13¢

Debt Payments

10¢

Health & Human

Services8¢

Parks, Recreation, Cultural & Community Development

7¢

Outside Agencies & Central Appropriations

7¢

Judicial6¢

General Government

12¢

Key Budget Drivers - General Fund

$14.3 $10.8

$48.1

$35.3

$22.2

$78.9

$0

$15

$30

$45

$60

$75

$90

Retirement - City Healthcare Debt Service - Bonds

$ in millions

FY 2004 FY 2012 Budget

Increased Expenditures in the General Fund

The city’s retirement contribution and healthcare expenditures doubled over an eight year period. Debt service payments on bonds increased by at least 50 percent over the same time period.

$10,089

$10,352 $10,459

$10,706

$10,946

$11,141

$11,324

$9,400 $9,600 $9,800

$10,000 $10,200 $10,400 $10,600 $10,800 $11,000 $11,200

$11,400 $11,600

Suffolk Portsmouth Chesapeake Virginia Beach

Newport News

Hampton Norfolk

Per Pupil Expenditure Comparison

Source: Fiscal Year 2010 - Virginia Department of Education’s Superintendent's Annual Report for Virginia

Norfolk ranks in the in the top 25 percent for per pupil expenditures

Norfolk Public Schools (NPS) Funding

The City of Norfolk values its partnership with Norfolk Public Schools, the largest urban school division in the Commonwealth. NPS’s mission is to educate each student to be a successful, productive contributor to society by providing powerful teaching and learning opportunities. The city provides 36.5 percent or $290,550,500 of its general fund to support NPS. In addition to the local contribution, the city provides support for NPS valued at almost $15 million for grounds maintenance, facility maintenance, school nurses, debt service payments, school crossing guards and school resource services. The city’s FY 2012 Capital Improvement Plan (CIP) includes $9.8 million to compete the construction of the new Crossroads K-8 school and continue funding for a second construction project. The five-year CIP includes $46.5 million for school construction and $3 million annually for major facility maintenance.

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The Commonwealth requires each locality to provide a match for its local school system. This match is called the required local effort. The City of Norfolk has consistently provided more than its required match. In the 2012 fiscal year Norfolk will provide 117 percent more than the required amount.

City support for Norfolk Public Schools (NPS) operating budget has remained constant

Source FY 2007 FY 2008 FY 2009 FY 2010 FY 2011* FY 2012*

City $97.6 $101.1 $104.5 $101.1 $104.5 $104.5

State $200.2 $202.0 $207.7 $207.9 $179.9 $171.3

Other Local $4.1 $5.3 $4.4 $3.6 $5.6 $4.1

Federal $7.9 $5.8 $7.4 $6.2 $5.5 $10.5

Total $309.7 $314.2 $324.0 $318.7 $295.7 $290.6

% of City Support 32% 32% 32% 32% 35% 36%

% of State Support 65% 64% 64% 65% 61% 59%

Amounts shown in millions. * Represents budget amounts.

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City of Norfolk Page 6

What does it cost?

Item Average Cost * Vehicles

Fire Engine - Ladder $691,000 Fire Engine - Telesquirt $640,000 Ambulance $227,000

Fire Pumper $515,000 Marked Police Vehicle $32,000 Trash Truck $260,000 Compact Pickup $14,000 Sedan (mid size) $14,000

Personnel Average salary - teacher $50,758 Average salary - full time city employee $44,365

Infrastructure $1 million in CIP Debt service will cost

$18,000 in interest the first year, and $98,000 each year thereafter

One Mile of Asphalt Street Resurfacing (approximately 2,100 lanes miles in the city)

$74,000

One Street Light (average cost for installation)

$3,600

One Traffic Signal (installation of new signal)

$275,000

Resurfacing Parking Lot $3,300 per space Build a Community Center (Approximately 25,000 sq ft)

$206 per square foot

Construct Parking Lot $1,400-$1,500 per space

* Average cost based on historical expenditures.

Potential Efficiency Initiative

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As a well managed government, the city continues to identify efficiency opportunities that will improve service delivery at the lowest possible cost. The city’s efforts will result in being more customer-focused while ensuring core services are protected. Many of the efficiency opportunities now under review were brought forward by Norfolk residents during last year’s community outreach meetings. Examples of these are:

• Permitting process • Code enforcement • Energy efficiency • Recreational programs • Refuse collection

These and other efficiency reviews are grounded in: measuring performance for each program; identifying areas of overlap and areas for cooperation; focusing on process improvements; and focusing on achieving desired outcomes.

Community Conversation Timeline Date Event

Saturday, January 7 Norview Community Center 11:00 am –1:00 pm

Thursday, January 12 Campostella Elem. School 6:00 pm—8:00 pm

Thursday, January 26 Mary D. Pretlow Library 6:00 pm—8:00 pm

Monday, January 30 Lamberts Point Community Center 6:00 pm—8:00 pm

Tuesday, January 31 Third Patrol Division 901 Asbury Avenue 6:00 pm—8:00 pm

Please visit www.norfolk.gov to post your comments and suggestions in the public forum. This forum is moderated

by a third party. You may post anonymously or include your name.

Citizens can also use mail-in “Community Input” Forms. Stop by any

library branch, recreation center or City Hall and mail it to the

Department of Communications.

Development of the budget requires an understanding of the priorities of the community, analysis of what the city can afford, and a focused allocation of resources. The community outreach program provides specific opportunities for the city to listen and learn from the community.

City Council

Paul D. Fraim Mayor

Anthony L. Burfoot Vice Mayor

Ward 3

Andrew A. Protogyrou Ward 1

Dr. Theresa W. Whibley Ward 2

Paul R. Riddick Ward 4

Barclay C. Winn Ward 6

Angelia M. Williams Ward 7

Marcus D. Jones City Manager

Thomas R. Smigiel Ward 5