COUNTY MANAGER’S PROPOSED FY 2020 BUDGET
County Board Work Session
Arlington Economic Development
Thursday, March 14, 2019 4:00 PM
General Fund & Tourism Promotion Fund
Making Arlington a leading community that is vibrant, accessible and resilient, today and in the future.Become the Technology
Innovation Center of the U.S.
To continue to develop Arlington County as an economically vital,
competitive and sustainable community by providing leadership and services to the business, real estate development and visitors services sectors of the Arlington
economy.
VISION
MISSION
Amazon in Arlington
Arlington Economic Development 2
• Fulfills longstanding community plans for Crystal City and Pentagon City.• Advances transportation and housing objectives with new sources of state support.• Brings substantial local and statewide investments in higher education and K-12 programming.
An Investment in Our Community
• After years of high vacancy rates and underutilized capacity, Crystal City and Pentagon City stand to gain $2.5 billion in new investment and occupancy of 4 million square feet of office space.
• Advances diversification of employment base with significant addition of private sector jobs.
A Turning Point for the Commercial Market
• The effort to recruit Amazon brought the entire region together. It was a shared success based on our outstanding workforce, transportation investment, quality of life, and collaborative problem solving.
• Partnership will continue as we begin to convene workforce resources from around the region.
A Regional Collaboration
Department Overview
3Arlington Economic Development
Business Investment Group
• FY19 year-to-date:• 7.16 million square feet
assisted• 39,035 total jobs*• Retention/Expansion: 12
deals, 913,863 square feet• New Business: 9 deals,
6,201,912 square feet
BizLaunch
• FY19 year-to-date:• Business outreach total: 2,418• 81 workshops (118 by yr. end)• 635 counseling appointments• 155 counseling appointments
and 12 workshops in Spanish• Key topics: starting a
business, strategic planning, access to capital, women entrepreneurship
Communications
• FY19 year-to-date:• Earned Media Impressions:
5.1B • Media Value: $281 million• Social Media: Followers: 10k;
Impressions: 2 million• Web Traffic: Sessions – 45k,
Users – 60k, Pageviews –150k
*Jobs # includes 37,850 from Amazon attraction (6 million s.f.)
Department Overview
4Arlington Economic Development
Arlington Convention &Visitors Service
• $123M in state and $91.7M in local tax receipts (2017)
• 149M domestic ad impressions to leisure & meetings audiences
• 171K StayArlington website sessions
• 29K group room nights booked
• 17K visitors served in person
Arlington Cultural Affairs
• Create: Festivals, Lubber Run Series, Groovin’ on the Pike, art on the ART Bus, Arlington Art Truck, Public Art (Audience –198,003)
• Promote: 60K Subscribers, 11K Social Media Followers, $560K Media Value, 2M Impressions
• Support: Grants (25), Make Your Mark! (29 artists, 300 attendees), Entrepreneurial Training for Artists (10 workshops)
Real Estate Development
• Initiated studies of current and future commercial market conditions and opportunities in the Columbia Pike and Lee Highway corridors.
• Technical support for Child Care Initiative
• Support on comprehensive and current planning efforts
Business Investment Summary
Arlington Economic Development 5
248*75,65012.4M
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CLOSED DEALS SINCE JAN 2015
NEW AND RETAINED JOBS
SQUARE FEET
DEALS USED EDI GRANTS
1776AIR**APT**
Basket Savings**BNA**
Eastern FoundryGrant Thornton**
GW MFALidl**
March of DimesNestlé**
ONRSineWaveAxios***
Higher Logic***Phone2Action***
Stardog***VideoBlocks***
*173 AED-assisted** COF match***Gazelle Grant
6Arlington Economic Development
Business Investment Summary (continued)
Investment in Economic Development
Ongoing: $1.5 millionOne-time: $1.08 million
Total: $2.58 million
FY 2020 funding meets current commitmentsEvery $1 invested generates $5
12.7%
16.0%
19.6%20.8%
16.7%
18.4%
17.2%
5%
10%
15%
20%
25%Countywide Vacancy Rate
Summary of Proposed Budget Changes
FY 2019Adopted
FY 2020Proposed Change
%Change
Expenses $6,078,798 $6,076,193 -$2,605 -0.04%Staff 30.80 FTEs 31.80 FTEs +1.0 FTE +3.2%
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• The proposed budget includes an addition of a 1.0 FTE in the AED BizLaunchprogram to support small businesses and help them adapt to new opportunities as a result of Amazon’s arrival. This proposal is based on an assumption that the County Board will review the Performance Agreement with Amazon and approve it prior to adoption of the budget in April.
Arlington Economic Development
General Fund – Without Cultural Affairs
Summary of Proposed Budget Changes
FY 2019Adopted
FY 2020Proposed Change
%Change
Expenses $1,546,700 $1,546,700 $0 0%Revenue $1,546,700 $1,546,700 $0 0%Staff 7.0 FTEs 7.0 FTEs - -
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• Proposed budget reflects anticipated $1,300,000 revenue from Transient Occupancy Tax Surcharge
• Revenue includes $246,700 ongoing General Fund Transfer
• Number one Virginia county for visitor spending since 2009
Arlington Economic Development
Tourism Promotion Fund
Detail: Proposed Reductions
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Reduce Director’s Office/Operations Group Administrative Support Service Impacts Budget Impact
• Reduce the Director’s Office Operations budget by $11,000. The reduction will:
Decrease the number of parking validations offered by AED to visitors coming to its office located at 1100 North Glebe Road.
Limit funding for office equipment, repairs and replacement.
FY 2020 Change: -$11,000
Staff Impact
None
Arlington Economic Development
Detail: Proposed Reductions
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Reduce Business Investment Group Data SubscriptionsService Impacts Budget Impact
• Reduce $35,500 in Data Subscription funding. The reduction will decrease the number of licenses from 13 to 6. This reduction may delay completion of research done by the program. Duties and licenses will be reallocated among staff to facilitate research with the reduced number of licenses.
FY 2020 Change: -$35,500
Staff Impact
None
Arlington Economic Development
Key Budget Considerations• Adds position to support small businesses with the arrival of Amazon
• Incentives funded to meet our commitments
• Maintains support for business investment program to sustain momentum
11Arlington Economic Development
COUNTY MANAGER’S PROPOSED FY 2020 BUDGET
County Board Work Session
Arlington Economic Development
March 14, 2019
Cultural Affairs Division
Arts General Fund Support (FY 2019- FY 2020)
Arlington Economic Development 13
Department / Program FY 2019 Adopted
FY 2020 Proposed
Cultural Affairs $2,255,549 $1,951,029
Arts Grants $215,810 $215,810
Art Facilities - Operating Expenditures (1) $356,296 $356,296
Library Art Shows & Exhibits (2) $5,000 $5,000
Parks & Recreation (3) $774,766 $664,500
Total $3,607,421 $3,192,635 (1) Reflects average annual operating expenditures at 3700 Four Mile Run, Arlington Arts Center, and Lee Arts Center.(2) Funds for staff time participating in the Exhibition Committee, coordinating and displaying art at each library location, working with the artists, and taking pictures for the library website. (3) Reflects funds for the Parks and Recreation Department's Community Arts Unit which implements the arts lending, arts camps, and other arts education programs and funds for art studio and art classes. The $100,266 decrease from FY 2019 to FY 2020 is related to two reduction options with no impact to the public (recognizing efficiencies in the Supply Room and Lending Program and reducing the level of temporary staff support in the Community Recreation Division) along with general decreases in personnel costs based on new staff and benefit elections.
Enriching Lives: Arlington Arts and Culture Strategy
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• A collaboration of Cultural Affairs and the Arlington Commission for the Arts initiated in 2015, with significant community engagement; adopted in 2017 by the Arts Commission
• Comprehensive and holistic strategy for Arlington’s arts and culture sector includes:• Vision -- Arlington thrives as a community because arts and culture create a
sense of place, catalyze economic vitality and enrich the lives of all those who live in, work or visit here.
• Values1. Art has value in itself2. Arts and culture are a strategic community resource3. Arts and culture underpin economic development and sustainability
• Five Goals, 16 Strategies• All Cultural Affairs and Arts Commission work program elements align with goals and
strategies• Arts Organizations are encouraged to use Enriching Lives when developing grant
application
Cultural Affairs Division Mission
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Create, promote and support the arts, connecting artists and community to reflect the diversity of Arlington.
1. Support artists and arts organizations2. Integrate public art into built environment3. Present performing and visual arts programming 4. Promote Arlington Arts brand
Guiding Principles for Cultural Affairs Programming
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• We bring art to the people -- we deliver fresh, high quality art and culture experiences where people live, work and play
• Everything we do is free and open to the public• We always leverage our scarce resources by collaborating with internal and
external partners• Artists are businesses, we pay them fairly for their work• We align our programming to reflect Arlington's diverse populations and
neighborhoods• We strive to introduce surprise, whimsy and fun into daily life
Role of Local Government in the Arts
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Develop, support, and provide programs that serve diverse populations, groups, cultures, and geographic areas.• Pilot low-cost, experimental arts projects that have the potential for wide distribution and replication.• Integrate Public Art in the built environment to express community values, enhance the environment and
heighten awareness. This art is there for everyone and is a form of collective community expression. • Facilitate the development of artist-entrepreneurs.• Include artist residencies in government agencies to inspire new solutions and engagement
methods for connecting with the public.• Encourage the incorporation of "A"rts in STEM and Innovation initiatives.
Summary of Proposed Budget Changes
FY 2019Adopted
FY 2020Proposed Change
%Change
Expenses $2,668,359 $2,352,839 -$315,520 -11.8%Revenue $197,000 $186,000 -$11,000 -5.6%Staff 22.10 FTEs 18.10 FTEs -4.0 FTEs -18.1%
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• Eliminate 4 FTEs from the Facilities and Technical Services Unit and change 1 FTE to one-time funding.
• Retain $25,000 from FTE reductions for sound engineering contractor expense for Cultural Affairs programming.
• Conversation on transition or disposal plans for Cultural Affairs assets.
Arlington Economic Development
Detail: Proposed Reductions
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Eliminate CostumeLab Manager position
Service Impacts Budget Impact
• Eliminate CostumeLab Manager position
• Consider the transition or closure of professional costume shop and costume rental house for theatre, television, film and industrial shows.
• Located at Gunston Middle School• Inventory - 23,000 costume pieces (period garments, modern
dress, hats, shoes, uniforms, capes, corsets, armor, etc.)• Equipment - steam kettle dye vat, various sewing machines,
steamers, cutting tables, notions and basic fabrics• Arts grantees and educational institutions receive 33% discount. In
FY 2018, 4 supported arts groups received discounts:
FY 2020 Change: -$70,761
Staff Impact
• 1.0 Cultural Affairs Specialists ($70,761; 1 filled)
Arlington Economic Development
WSC Avant BardThe Arlington Players
Opera NOVAEncore Stage and Studio
Key Budget Considerations• The transition plan for CostumeLab could include:
• Disposal of inventory through appropriate means (sell, auction, transfer to Arlington Public Schools or nonprofit organization); and
• Move equipment to 3700 South Four Mile Run (4MR) to support the recommended 4MR Arts and Industry District.
• A transfer of assets or an operating agreement with a suitable arts organization, community group, or Arlington Public Schools.
• Transition plan will consider the needs of the 4 supported arts organizations that use the CostumeLab.
20Arlington Economic Development
Detail: Proposed Reductions
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Eliminate Scenic Tech Manager position
Service Impacts Budget Impact
• Eliminate Scenic Tech Manager position• Consider transition options for the Scenic Studio which provides
scenery construction space and technical assistance to community arts organizations.
• 7,200 SF construction shop at Gunston Middle School• Construction equipment (saws, sanders, power tools)• Manager provides professional guidance, monitors construction
safety and mentors students on theater arts• In FY 2018, 5 groups utilized the program at a rate of $35 a week –
WSC Avant Bard, The Arlington Players, Dominion Stage, Encore Stage and Studio, and Jane Franklin Dance.
FY 2020 Change: -$108,621
Staff Impact
• 1.0 Cultural Affairs Specialists ($108,621; 1 filled)
Arlington Economic Development
Key Budget Considerations
• The transition plan options for Scenic Studio could include:
• A transfer of assets or an operating agreement with a suitable arts organization, community group, or Arlington Public Schools.
• Transition plan will consider the needs of the 5 organizations that use the Scenic Studio.
22Arlington Economic Development
Detail: Proposed Reductions
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Eliminate Audio Production Specialist; Mobile Stage not staffed by CAD
Service Impacts Budget Impact
Audio Production Specialist
• Eliminates in-house audio and production-related functions to support County or community groups, including support for the Mobile Stage.
• Retain $25,000 from the position to use for contracted production support and sound engineer for Cultural Affairs programming at the Columbia Pike Library, Lubber Run Amphitheater, Rosslyn Jazz Fest, and Columbia Pike Blues Festival.
Mobile Stage
• 15-year-old mobile stage which requires two trained staff to operate. Cultural Affairs will no longer be able to staff as a result of reductions.
• Community groups rent through Special Events Process. Depending on organization-type, fees range from $500-$1,500. Groups will need to rent stage from private/outside vendors.
FY 2020 Change: -$83,143
Staff Impact
• 1.0 Cultural Affairs Specialists ($108,143; 1 vacant)
Arlington Economic Development
Key Budget ConsiderationsThe transition plan for Mobile Stage could include:
• Disposal of asset;
• Rent stage from private vendor when needed (~$3,000/event); and
• Provide referral list of vendors to Special Events Committee for external users
24Arlington Economic Development
Detail: Proposed Reductions
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Eliminate Facility Manager at 3700 South 4MR
Service Impacts Budget Impact
• 3700 South 4MR is a community art space with a black box theater, rehearsal spaces, dance studios, a recording studio, gallery, conference and training rooms and offices.
• Space & Services grantees used the facility approximately 60 rehearsals per month (5 grantees) and 54 performances in BBT (3 grantees) a year.
• Eliminate 1.0 Facility Manager position responsible for managing the County’s community art space at 3700 South 4MR. The responsibilities of this position will be absorbed by existing staff in the division.
FY 2020 Change: -$96,663
Staff Impact
• 1.0 Cultural Affairs Specialist ($96,663; 1 filled)
• 1.0 Facility Technical Services Director ($151,202; filled) position changed from ongoing to one-time funding
Arlington Economic Development
Key Budget ConsiderationsThe transition plan for use, scheduling, and operation for CAD facilities could include:
• Working with Arlington Public Schools to facilitate joint-use facility scheduling process.
• Evaluating the existing Space & Services grant program and moving to a cost recovery model for Cultural Affairs facilities and equipment at 3700 South 4MR.
26Arlington Economic Development
Art Grants Program
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• The FY 2020 proposed budget does not reduce funding for the Arts Grants Program.• FY 2020 Applicants include: 19 Arts Organizations; 8 Individual Artists
Transition in FY 2021• Cultural Affairs plans to alter the existing Arts Grants Program to better align with the
direction laid out in the “Enriching Lives” Arts and Culture Strategy adopted by the Arlington Arts Commission.
• Potential changes include:• New applicant criteria, for example programs or projects that:
• Address a local community problem, issue, or need through an arts-based lens;• Are publicly accessible (park, library, or non-traditional space); and• Involve a non-arts community partner. • Provide direct financial grants only.
Looking Forward in Cultural Affairs
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• FY 2021 Arts Grants Program • Arts & Industry District
• Study of alternative models underway• Recommendations to County Board December 2019• 3700 becomes anchor and catalyst for Arts & Industry District
• Artspace Project: Spaces for artists to work and/or live• In progress - identifying a site and pre-development funding for a project
• Latitude Art Space in Virginia Square launches satellite George Mason University film and video program
• Negotiating Memorandum of Understanding• Public Art Master Plan Update
COUNTY MANAGER’S PROPOSED FY 2020 BUDGET
County Board Work Session
Arlington Economic Development
Thursday, March 14, 2019 4:00 PM