communications and information technology€¦ · communications and information technology budget...

Communications and Information Technology

Budget Workshop April 30, 2013

Matthew B. Arvay, CIO

ComIT Operating Budget

Program Unit FY 12-13 Amended

FY 12-13 FTE

FY 13-14 Proposed

FY 13-14 FTE

Change FY 13 Amended to FY 14

Proposed Multimedia Services $1,435,347 16.5 $1,474,914 17.5 $39,567 2.8% Mail Services $235,194 4 $250,228 4 $15,034 6.4% Business Center $991,526 13 $841,076 12 ($150,450) -15.2% Applications Support $7,404,660 50 $8,241,814 54 $837,154 11.3% Computer Replacement $0 0 $1,079,613 1 $1,079,613 Systems Support $7,698,852 41 $6,465,268 38 ($1,233,584) -16.0% Center for GIS $2,019,933 19 $2,065,694 19 $45,761 2.3% Telecom GF $1,158,812 8 $1,168,384 8 $9,572 0.8% Technology Services $1,888,119 15 $1,870,657 15 ($17,462) -0.9% Telecom ISF $2,807,772 10 $3,470,319 10 $662,547 23.6% Subscriptions ISF $2,606,092 0 $3,027,774 0 $421,682 16.2% Capital Projects ISF $197,364 2 $197,938 2 $574 0.3% Reserve-Telecom ISF $447,320 0 $184,400 0 ($262,920) -58.8% Reserve-Subs ISF $998,781 0 $255,507 0 ($743,274) -74.4% Total $29,889,772 178.5 $30,593,586 180.5 $703,814 2.4%

2

3

$23,457,648

77%

$7,135,938 23%

General Fund Internal Service Funds

Personnel $17,321,597

56.6%

Operating $11,550,530

37.8%

Capital $1,281,552

4.2%

Reserves $439,907

1.4%

Personnel Operating Capital Reserves and Transfers

Budget by Fund

Budget by Expense Category

ComIT FY 2013-14 Budget

4

Personnel 56.6% HW/SW

Maintenance 17.4%

Outsourced + Contracted Staff

6.5%

Internal Charges 2.2%

Voice/Data Connectivity

8.2%

Other Operating 3.4%

Capital 4.2%

Reserves and Transfers

1.4%

PersonnelHW/SW MaintenanceOutsourced + Contracted StaffInternal ChargesVoice/Data ConnectivityOther OperatingCapitalReserves and Transfers

ComIT FY 2013-14 Budget

ComIT Efficiencies/Improvements

New IT Professional Services Contract (25 Vendors)

Upgraded PBX with VoIP Capabilities

Mainframe Outsourcing

Continued Effort to Expand Server Virtualization

Standard Computer Operating Environment

Partnering with Customers to Optimize the use of Technology at New and Existing Facilities

5

Communications and Information Technology Significant Issues

Disaster Recovery – Implementation of the Long Term Plan

Mobile Strategy Mobile Device Management Mobile Application Development and Support

Increasing Costs of Departmental and Citywide Software/Hardware Maintenance Oracle, RACs, Microsoft, etc.

On-going effort to maintain staffing levels Lowest vacancy rate in recent years Recruitment and retention pressure from increasingly competitive technology

market

Transformation of ComIT’s culture – Customer Service Oriented, Can-Do Attitude, Collaborative in Nature

6

Communications and Information Technology FY 2013-14 Trends & Highlights

7

Privatization of the Print Shop

Windows 7 Project Hardware & Software Upgrade

Virtual Town Hall for citizen engagement

Web Site Upgrades – new mapping application

Public Safety Mobile Data Computers

City IT Mobile Strategy

Critical Service Adjustments

Affects batch jobs for departments and system monitoring and overnight printing Reducing Data Center Staffing from 5 to 3 Shift adjustments to 7 a.m. to Midnight Data Center not covered Midnight to 7 a.m., no

weekends Will require departmental process adjustments

8

Capital Improvement Program FY 2014-FY 2019

FY 2012-13 (in millions)

Proposed FY 2013-14 (in millions)

Difference

(in millions)

Communications and Information Technology

$19,282,493 $11,838,931 ($7,443,562)

9

Capital Budget

Total Funding

Communications and Information Technology (Six Year Plan Total) $38,023,895

Safe Community Funding $18,103,020 $ 7,249,474

Major CIT Projects Funded Project

Total Project

Cost

FY14

Funding

Project Start and End Dates

3.142 Communications Infra. Replacement $34,573,605 $2,882,451 07/09 – 06/19

3.068 IT Network Infrastructure Replace $ 1,696,803 $ 300,000 07/08 – 06/14

3.052 IT Service Continuity $ 9,450,725 $1,248,972 07/06 – 06/19

3.095 Police Integrated Public Safety RMS $10,401,389 $3,367,023 07/11 – 06/19

3.652 Telecommunications Replacement II $ 454,494 $ 104,494 07/12 – 06/18

3.646 EGIS Base Mapping Updates $ 722,756 $ 287,500 07/12 – 12/14

3.632 Planning Bus. Integration Accela II $ 1,344,314 $ 1,344,413 07/12 – 06/14

3.605 Payment Card Industry SAQ C $ 390,000 $ 390,000 07/13 – 06/14

3.119 Cable Access Infra. Replacement I $4,119,261 $ 322,000 07/08 – 06/20

3.606 Fire Station Alerting $3,068,366 $ 1,000,000 07/13 – 06/15

3.608 Disaster Recovery – Power/Security $ 592,078 $ 592,078 07/13 – 06/14

10 Total of 11 funded projects $11,838,931

Capital Improvement Program FY 2014-FY 2019

11

ComIT $38,023,895

3%

Schools 18%

Coastal 6%

Econ & Tourism

7%

Roadways 16%

Buildings 8%

Parks & Recreation

7% Utilities 35%

Total City CIP Funding- FY 2014 to FY 2019

$25,367,618

$11,311,864

$1,344,413

$-

$-

$-

$-

$- $10,000,000 $20,000,000 $30,000,000

Safe Community

Quality Organization

Quality PhysicalEnvironment

Economic Vitality

Cultural & RecreationalOpp.

Quality Education &Lifelong Learning

Family & Youth Opp.

CIT CIP FY 2014- FY 2019 Funding

CIT Projects Not Funded Ranked by the CIT CIP Review Team

12

Total of 18 unfunded projects $14,973,898

Project Total Project Cost

EGIS - 3D Modeling $ 151,875 PW - Waste Management Analysis $ 303,510 Police Oceanfront Cameras $ 3,732,942 PCI Data Security Compliance SAQ D $ 390,000 Portable Radio Replacement/In Mask $ 5,152,213 Disaster Recovery-Data Center Continuity $ 741,370 PWRE Database & Reporting System $ 410,345 ECCS - Customer Relationship Management Analysis $ 169,092 Disaster Recover-Secured Facilities Access $ 700,596 ECCS Smart911 $ 177,395 EGIS - Advanced Routing $ 174,042 Disaster Recovery-Plan & Physical Purchases $ 1,490,944 Fiber Optic Network Analysis $ 325,080 Camera Access for EOC Analysis $ 148,378 Augmented Reality $ 154,852 ECCS - Automated Scheduling $ 257,836 Redundant Communications Systems Analysis $ 367,440 ECCS - Employee Performance Management $ 125,988

Technology CIP Shortfall

Departmental technology CIP backlog exceeds $14 Million

No long-term funding strategy for core hardware replacement or new investment for servers, network devices, storage, fiber, security appliances

Annual application licensing, maintenance, and upgrade requirements ($373,000 for FY14 operational increases)

13

14

Why Mobile Apps?

Proliferation of mobile devices. Gartner predicts that mobile phone shipments are expected to increase to 2.1 billion units by 2017 and tablet shipments to 467 million units (a 300% increase over 2012 figures)

Mobile applications enhance an organization’s ability to engage with its constituents by improving access to information and services

Increasing demand from internal and external customers for mobile applications

Ease of use by customers (at their fingertips no matter where they are)

Increasing efficiencies Integration with work order management systems Mobilization of the workforce

15

City IT Mobile Strategy

Mobile friendly web sites using “responsive” design Auto-scales to the size of the device

Phase I – Citizen Engagement Implement a hybrid model for mobile applications Commercially purchased application and hosted

services (i.e. pot holes, graffiti) In-house development, maintenance, and modification

(i.e. parking locator application, city/ facility event locations, tourism application)

Integrates with City data/work management systems (i.e. Hansen and Accela)

Phase II – Workforce Enablement Increase connectivity with City systems and resources

16

Conclusion FY 2013-14 Key Initiatives

Align ComIT with the organization – Create IT Strategic Plan

Create technology architecture roadmap

Empower and enable citizens, businesses, and departments through the development of mobile strategy

Develop collaborative fiber-optic network as backbone to Municipal Area Network

Transformation of ComIT’s culture – Customer Service Oriented, Can-Do Attitude, Collaborative in Nature

17

Communications and Information Technology 2013-14 Trends and Highlights

$0$1,000$2,000$3,000$4,000$5,000$6,000$7,000$8,000$9,000

$10,000

FY07 FY08 FY09 FY10 FY10 FY12CVB State/Local

Government: IT Spend Per Employee City of Virginia Beach vs Gartner IT Key Metrics

0.00%1.00%2.00%3.00%4.00%5.00%6.00%

FY07 FY08 FY09 FY10 FY11 FY12CVB State/Local

Government : IT Employees as % of Total Employees City of Virginia Beach vs Gartner IT Key Metrics

25 IT Cost Containment Techniques Framework

Manage Demand

Shift to Variable Cost

Link costs to demand

2. IT PMO 1. Chargeback

4. Contingent Workers 5. Software as a Service

6. Capacity-on- Demand

3. IT Governance

Improve IS Business Practices

20. Print Fleet Rationalization

19. Asset/License Management

Change IS Operating Model

15. Data Center Consolidation/ Automation

16. Standard Operating Environment

17. Teleworking

21. Telephone Expense Management

25. Apps Dev Process Improvement

24. IT Operations Process Improvement

23. Contract Renegotiation

18. Refresh/ Upgrade Delay

22. Telephone Bill Audit

Reduce Resource Costs

Reduce Technology Cost

11. Server/Storage Virtualization

12. Voice/Data Network Reengineering

13. Voice over Internet Protocol

Reduce Labor Cost

7. Staff Reconfiguration

8. Selective Outsourcing

9. Offshore Outsourcing

10. Automated Software Distribution

14. Open-Source Software

Change Operating Practices

IT c

ost c

onta

inm

ent

Gartner: 25 IT Cost Containment Techniques Framework o

Finance Department


Patti Phillips – Finance Director

Finance Operating Budget Program Unit FY 12-13

Amended FY 12-13 FTE

FY 13-14 Proposed

FY 13-14 FTE


Proposed

General Fund 4,933,234 47.0 5,053,202 47.0 $ 119,968 2.4%

Risk Mgt- Internal Service Fund

11,071,818 7.0 12,040,488 7.0 $968,670 8.8%

Cap Project -Internal Service Fund

164,434 2.0 162,711 2.0 ($1,723) (1.0%)

Total $16,169,486 56.0 $17,256,401 56.0 $1,086,915 6.7% 2

4

$5,053,202 29%

$12,040,488 70%

$162,711 1%

General Fund Risk Management ISF Capital Project ISF

$4,690,122 27%

$686,538 4.0%

$845,272 5%

Personnel Operations Insurance & Claims LVR

$11,034,469 64%

Budget by Fund or Revenue


FY 2013-14 Budget

Finance Significant Issues Since 1990, 27.3% decrease in staffing and elimination of 20 positions. In last 5 years, over 140% turnover in staff accountants, 85% turnover in

Risk Management and 88% turnover in Payroll

Communicating with Rating Agencies to protect AAA Rating

FOIA requests for financial, purchasing, payroll, expenditure and revenue information

New priorities, changing mandates and increased complexity require more resources. Growth in demand exceeds available resources. Complexity of financial processes inhibit efficiencies. (i.e. IRS, VRS)

VRS Hybrid Plan and VLDP

5

Operations Efficiencies – Debt refinancing saving of $3.1 M General Obligation and $5.27 M Public Facility

Revenue Bonds in FY12, and $3.9 M General Obligation in FY13 – Efficient debt issuance process, bond accounting and arbitrage – Model for Public Assistance Recovery to maximize FEMA and VDEM

reimbursements – Automatic distribution of hotel and meal tax across funds – Simplified capital project accounting – Streamlined lease billing and collections increasing on-time payments – State PCARD contract – costs reduced, controls improved & bigger rebate – Streamlined energy invoice entry and processing reducing duplicate processes – Re-negotiated residential recycling services agreement saving $7.9M over 6 years. – Contracts for Household Hazardous Waste/White Goods - $200,000/yr savings . – Worker Compensation Third Party administrator - $1.2 Million Savings over 8 years

• Requirements that offset Operating Efficiencies

– New IRS Reporting and Documentation -New GASB Statements and Accounting – New VRS roles/responsibilities with myVRS -More Complex FOIAs – More scrutiny of internal controls / accountability -Bond regulations & continuing disclosure – Paying Current versus Arrears –expense, complexity -New Grant Reimbursement Requirements

6

Finance Department FY 2013-14 Trends & Highlights

VRS: VRS Modernization Administration, VRS Hybrid Retirement Plan (Defined Contribution) ,VRS Locality Sickness & Disability Program (VLDP)

Payroll: Arrears , Streamlining Payroll Process, training program

Disability: Job-related disability/retirements & Return to Work (HR)

Transparency: Continue to simplify revenues, CIP accounting, reporting.

Financial analysis/financing: Alternatives for potential projects

Bond Sales

Self Insurance: Cost allocation updated. Risk Program Technology Hosting. 52% funding for accrued liabilities with a goal of 70%

Minority and Small Business: Small Business Enhancement Program, minority contracting efforts

Financial Assessment: Assessment and Performance Review of Financial Management best practices

7

Critical Services NOT Funded VRS Defined Contribution Plan (Hybrid Plan) including the Sickness & Disability Program (VLDP) planned for January 2014 • 0.91% of payroll as VLDP rate for participants. • Does not apply to Hazardous duty employees • Will require dual sets of policy, payroll,

workers compensation and return to work processes for new employees versus current

• Will Return to Council in August on VLDP decision – in house or through VRS

8

9

Conclusions Strive for transparency in financial information. Finance is critical infrastructure for entire City. VRS Hybrid and Virginia Local Disability Plan (VLDP) mandated for January 2014. Will return to Council in August on VLDP decision Major payroll process improvement – arrears needed to reduce inefficiencies and reduce risk

Human Resources Department Budget Workshop

April 30, 2013

Regina S. Hilliard, Director

Human Resources Operating Budget Program Unit FY 12-13


FY 13-14 Proposed

FY 13-14 FTE

Change FY 13 Amended to FY 14 Proposed

Director’s Office $ 360,907 3.00 $ 354,963 3.00 $ (5,944) -1.65%

Employee Relations 585,229 7.00 537,939 7.00 (47,290) -8.08%

Staffing and Compensation Services

1,219,478 16.00 1,125,529 16.00 (93,949) -7.70%

Learning and Development 746,774 7.00 711,648 7.00 (35,126) -4.70%

HR Police Services 97,379 1.00 101,380 1.00 4,001 4.11%

Member Communications 110,016 1.00 122,263 1.00 12,247 11.13%

2

Human Resources Operating Budget Program Unit FY 12-13


FY 13-14 Proposed

FY 13-14 FTE


Human Rights Commission 69,399 1.00 69,580 1.00 181 0.26%

Occupational Safety 249,428 3.00 243,860 3.00 (5,568) -2.23%

Occupational Health 846,723 8.00 865,805 8.00 19,082 2.25%

Total $4,285,333 47.00 $4,132,967 47.00 $(152,366) (3.56%)

3

Budget by Fund

General Fund 100 %

82%

18%

Personnel Operations


Human Resources

FY 2013-14 Significant Issues

Personnel Board Hearings FY 13 = 24 Appeals Filed and 20 Hearings held FY 12 = 16 Appeals Filed and 9 Hearings held

ADA FY13 = 47 new requests for accommodation FY12 = 25 new requests for accommodation

EEO FY13 = 13 investigations FY12 = 10 investigations

5

Human Resources

FY 2013-14 Significant Issues

Affordable Health Care Act January 1, 2014

Virginia Retirement System Hybrid Plan January 1, 2014

6

Human Resources

Continuing Efficiency Efforts Orientation Restructured

Onboarding/orientation training completed in a shorter time period

TB Testing No longer routine part of physical, only for those required to have it

Video Conference Interviews Minimize cost of interviewing out of town applicants

VBWellnessforLife Screenings

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Conclusions

Unfunded non-departmental program: Tuition Reimbursement

Lack of Merit Increases

Employee Morale/Dissatisfaction

8

Vertical Salary Compression

Current/Historical Methodology Vertical compression determined by reviewing supervisor salaries in

comparison to those within supervisor’s span of control

If supervisor salary is lower than employee in their span of control, salary will be increased to $1 more than employee salary

If increasing supervisor salary causes compression, supervisors newly compressed will be raised to the new salary

Supervisors must have at lease one year in title by 6/30/13 to qualify for vertical compression adjustment

Vertical compression cannot be caused by a supervisor having the same title as an employee within their span of control

10

Summary of Findings There are 170 City employees affected by supervisory-subordinate salary compression.

Non-Public Safety employees: 129 Public Safety employees: 41

Compression adjustments are capped at $5,000 per person.

The total cost of compression adjustments is $541,770 ($677,213 with benefits)

Non-Public Safety employees: $424,727 ($530,909 with benefits) Public Safety employees: $117,043 ($146,304 with benefits)

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Budget and Management Services & Non-Departmental Budget Workshop April 30, 2013

Catheryn Whitesell

Budget & Management Services Operating Budget


FY 12-13 FTE

FY 13-14 Proposed

FY 13-14 FTE


Proposed

Budget & Management Services

$ 1,511,425 15.0 $ 1,520,668 14.0 $ 9,243 0.06%

2

3

Personnel $1,382,047

90.9%

Operations $138,621

9.1%


FY 2013-14 Budget

Budget & Management Services Significant Issues

Continue to redesign processes to adapt to the loss of 6 positions since 2010. Plus the fact that: 2 current staff are retiring this year 4 of our 8 analysts are eligible to retire Both the management staff are eligible to retire within 4 years

Staff the Council appointed Process Improvement Steering

Committee and the Hampton Roads Partnership’s Shared Services Project.

4

Non-Departmental

Non-Departmental Operating Budget

Program Unit

FY 12-13

Amended

FY 12-13

FTE

FY 13-14 Proposed

FY 13-14

FTE


Proposed

Community Organization Grants $ 426,343 0.00 $ 409,126 0.00 $ (17,217) (4.0%)

Virginia Beach Living River Trust 0 0.00 100,000 0.00 100,000 -

Employee Special Benefits 5,266,655 0.00 5,716,592 0.00 449,937 8.5%

Benefits Administration 662,283 0.00 635,538 0.00 (26,745) ( 4.0%)

Vehicle Replacements 5,111,914 0.00 6,032,514 0.00 920,600 18.1%

Revenue Reimbursements 15,957,439 0.00 15,093,730 0.00 (863,709) (5.4%)

Regional Participation 1,993,213 0.00 1,965,720 0.00 (27,493) (1.4%)

Independent Financial Services 153,878 0.00 153,878 0.00 0 0.0%

City-wide Leases 1,673,225 0.00 1,612,227 0.00 (60,998) (3.6%)

Total $31,244,950 0.00 $31,719,325 0.00 $ 474,375 1.5 %

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The current FY 2012-13 budgeted cost of this program is the equivalent to almost 3 cents on the real estate tax rate. Restructuring this program in the proposed manner is estimated to reduce the cost by $1.1 million

Modifications to income thresholds are shown below:

The Freeze and Deferral Programs are unchanged with income eligibility up to $67,000.

7,603 participants in the elderly and disabled program and 700 in the disabled Veterans Program

Non-Departmental Real Estate Tax Relief Program

8

Real Estate Tax Relief Threshold Modifications

Exemption Existing Threshold Modified Threshold

100% $0.00 to $47,100.00 $0.00 to $42,100.00

80% $47,100.01 to $51,200.00 $42,100.01 to $46,200.00

60% $51,200.01 to $55,300.00 $46,200.01 to $50,300.00

40% $55,300.01 to $59,400.00 $50,300.01 to $54,400.00

20% $59,400.01 to $63,450.00 $54,400.01 to $58,450.00

Even with the modifications in income thresholds, Virginia Beach will still have the most generous real estate tax exemption program in the region.

Non-Departmental Real Estate Tax Relief

9

Maximum Income Allowed for 100% Real Estate Tax Exemption

City Amount Portsmouth $21,000 Chesapeake $22,000

Hampton $25,000 Norfolk $28,611 Suffolk $41,479

Virginia Beach $42,100 (Current is $47,100)

Modifications in income thresholds may result in a reduction in the number of participants in the Real Estate Tax Relief for the Elderly Program.

Non-Departmental Real Estate Tax Relief

10

Comparison of Number of FY 2013 Participants in the Existing and Modified Real Estate Tax Relief for the Elderly Program

Existing Tax Relief Program Modified Tax Relief Program

Home Value 100% 80% 60% 40% 20% Total 100% 80% 60% 40% 20% Total

$900,000 and Over 7 2 0 0 0 9 7 0 1 1 0 9

$700,000 - $899,999 9 1 2 0 0 12 5 3 2 1 1 12

$500,000 - $699,999 72 5 3 3 8 91 61 11 3 5 3 83

$300,000 - $499,999 535 60 43 48 34 720 446 77 55 55 44 677

$100,000 - $299,999 5,249 388 319 312 246 6,514 4,583 606 362 332 319 6,202

$0 - $99,999 156 4 6 0 2 168 145 9 5 6 1 166

Total 6,028 460 373 363 290 7,514 5,247 706 428 400 365 7,149

Real Estate Tax Relief The chart below shows the total real estate tax relief programs for the Elderly, for

the Disabled, and beginning in FY 12 for the Disabled Veterans. The dark portion for FY 14 shows the $1.1 million, which would be needed if there were no changes in the program.

Non-Departmental

11

$-

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

$14,000,000

$16,000,000

$18,000,000

04 05 06 07 08 09 10 11 12 13 14Fiscal Year

Real Estate Tax Relief

Vehicle Replacement Program As of FY14, backlog totals $29 million.

Non-Departmental

12

$19.89 $17.48 $17.75 $18.59 $19.17

$22.16

$26.17

$29.63

$27.00

$24.01

$-

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

FY 06 FY 07 FY 08 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15

Mill

ions

Funding vs. Backlog

Backlog Budget Funded

Source: Department of Public Works Workshop Presentation

13

Community Organization Grants FY 2012-13

Funding Beach Health Clinic $90,000 Chesapeake Health Investment Program 1,710 Children’s Hospital of the King’s Daughters 20,000 Endependence Center Inc. 30,000 Equi-Kids 10,000 Foodbank of Southeastern Virginia 47,812 Judeo-Christian Outreach Center 45,000 Mary Buckley Foundation 35,290 Samaritan House 15,000 Senior Services of Southeastern Virginia 43,250 Seton House 10,000 Together We Can Foundation 5,000 Virginia Beach Lifesaver, Inc. 32,960 Volunteers of America-Chesapeake 40,321

Total $426,343

FY 2013-14 COG grants will be determined by the COG Review and Allocation Committee appointed by City Council at the end of May based on funding and applications.

Regional Organizations FY 2013-14

Proposed Funding Court Appointed Special Advocate $10,000 Eastern Virginia Medical School 433,033 Hampton Roads Chamber of Commerce 8,500 Hampton Roads Economic Development Alliance 412,059 Hampton Roads Military and Federal Facility Alliance 215,175 Hampton Roads Partnership 15,210 Hampton Roads Planning District Commission 344,310 HRPDC-Metro Medical Response System 88,249 Navy League 21,250 Southeast 4-H 6,036 Square One 53,798 Tidewater Builders’ Association 50,000 Tidewater Community College 5,100 Virginia Arts Festival 250,000 Virginia Beach S.P.C.A. 30,000 Virginia Dare Soil Conservation 8,000 Virginia Offshore Wind Alliance 5,000 Virginians for High Speed Rail 10,000

Total $1,965,720 14

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Fund and Purpose AmountGeneral Fund (002)

Compensation 1,310,486$ Compensation-Overtime Change (300,000) Compensation-Standby Pay (651,815) Regular 1,710,075 Compression 1,000,000 Sequestration 2,700,000 Health Insurance Reserve 600,000 Replacement of Totaled Vehicles 150,000

School Equipment Replacement Special Revenue Fund (107)Education Capital Outlay 453,782

Law Library Fund (130)Compensation 378

Waste Management Special Revenue Fund (144)Compensation 32,952 Regular 92,048

Parks and Recreation Special Revenue Fund (151)Compensation 31,316 Regular 255,507

Tourism Investment Program Fund (152)Compensation 2,279 Future Capital Projects 132,623

Agriculture Reserve Program Special Revenue Fund (161)Compensation 439 Regular 256,688

Tourism Advertising Program Special Revenue Fund (163)Compensation 2,432

Open Space Special Revenue Fund (172)Compensation 1,291

Grants Consolidated Fund (183)Miscellaneous Grants 100,000

Water and Sewer Enterprise Fund (241)Compensation 98,198 Compensation-Overtime Change (100,000) Compensation-Standby Pay (530,137) Regular 1,643,991

AmountParking Enterprise Fund (253)

Compensation 1,416 Parking Maintenance 282,656

Storm Water Utility Enterprise Fund (255)Compensation 32,805 Regular 220,000 Future Commitments 2,807,664

City Garage Internal Service Fund (606)Compensation 19,241

Risk Management Internal Service Fund (607)Compensation 2,037

Capital Projects Internal Service Fund (610)Compensation 2,330

School Landscaping Internal Service Fund (613)Compensation 8,961

Telecommunications Internal Service Fund (620)Compensation 3,499 Future Capital Projects 104,494 ComIT-Hardware 76,407

Subscriptions Internal Service Fund (621)Regular 255,507

Total 12,554,043$

Reserve for Contingencies by Fund for FY 2013-14

QUESTIONS?

16

City Attorney


Mark D. Stiles

City Attorney Program Unit

FY 12-13 Amended

FY 12-13 FTE

FY 13-14 Proposed

FY 13-14 FTE

$ Change FY 13

Adjusted to FY 14

Proposed

% Change FY13

Adjusted to FY14

Proposed

Legal Services $3,817,883 39.61 $3,995,079 39.61 $177,196

Total $3,817,883 39.61 $3,995,079 39.61 $177,196 4.6%

2

95.9%

4.1%


$94 $96 $100

$332 $354 $345

$103 $99 $103

FY10 FY11 FY12

In-House Cost Per Hour

Outside Counsel Cost Per Hour

Average Rate

City Attorney

The purpose of the City Attorney’s Office is to provide effective and efficient legal services, promote accountability, trust and openness in government, and focus on outcomes that are fair, equitable and balanced while protecting the best interests of the client.

40,734 service hours were provided in FY12

The average cost of in-house/outside counsel was $103

99% of all legal services are provided in-house

City Attorney

The number of authorized positions remains unchanged (39.61 FTE). 22 full time and 1 part time attorneys supported by legal administrator and 16 staff

Service levels expected to remain consistent Personnel costs, including VRS and health insurance charges, account

for more than 90% of total budget increase Changes to the operating budget reflect an increase of $12,107 in

software support to ensure that our file management software is compatible with the citywide Windows 7 conversion

Increased Risk Management costs of $5,629 2.5 attorneys and one support staff paid by and assigned to the

School Board and School Administration pursuant to the FY13 Cooperative Agreement ($386,488)

City Attorney

FY 2013-14 Trends & Highlights Legal support for implementation of Neighborhood Dredging

Program Ongoing legal work in support of BRAC Program Legal support and structure for economic development

initiatives including development of the Dome site and light rail Legal support for compliance with the EPA-mandated Clean

Water Act Significant increase in real estate activity in connection with

planned and ongoing road projects FOIA compliance – increasing service demands Continued efforts to comply with Health Care Reform

5

Office of the City Auditor


Lyndon Remias, City Auditor

Office of the City Auditor Operating Budget Program Unit FY 12-13


FY 13-14 Proposed

FY 13-14 FTE


Proposed

Office of the City Auditor 623,351 6.0 654,945 6.0 $ 31,594 2.0%

Total $623,351 6.0 $654,945 6.0 $ 31,594 2.0%

2

Recommendation of funding by Management Services

3

100%

General Fund

$630,463 96.3%

$24,482 3.7%




FY 2013-14 Budget

Office of the City Auditor Significant Issues

Continue to promote accountability and integrity in City operations by providing quality audit services.

Continue management and oversight of City’s Fraud, Waste & Abuse Prevention and Reporting Program, including Fraud Hotline, available to citizens & employees as mandated by State.

Continue administration & oversight of the mandated external audit of the City’s CAFR & Single Audit Requirements for federal funding.

Any reduction in funding would have severe impact on our ability to serve City Council, Audit Committee, City leadership/members and citizens.

4

Office of the City Auditor FY 2013-14 Trends & Highlights

Public is demanding increased accountability and oversight over the use of taxpayer funds. We fill that role.

In the last five years, we have identified savings and/or recoveries in the millions of dollars.

Reduced budgets and spending result in the need for increased efficiency and effectiveness.

In FY12, we completed 9 attestation and performance audits resulting in improved financial and management controls, processes, contract performance, efficiency, effectiveness and quality of services. Also performed 5 additional reviews at the request of the City Attorney’s Office, City Council or City

Management Compliance suffers with the need to do more with less putting the City at risk (i.e., legal

and regulatory, funding , and perception). ACFE research shows incidents of fraud increase in times of economic downturn. Since implementation of Fraud, Waste & Abuse Hotline in FY07, we have investigated

over 232 allegations of theft, misuse, waste and abuse of City resources resulting in strengthened internal controls, a multitude of convictions, restitution, recoveries and disciplinary actions.

Worked with Human Resources, City Attorney’s Office, Commonwealth’s Attorney and the Police to ensure appropriate criminal and personnel actions.

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Critical Services NOT Funded New Funding for SL3 New Auditor II Position

This request for a new position has been advocated and supported

by City Council and Audit Committee.

The additional funding to add a FTE would be value added service with Return on Investment (ROI).

The audits we are not able to do by not funding are just as important as what audits that are being done.

Audits being done reflect value and have proven ROI. The new position would only enhance and enable the scope of audits

being done to be broadened. The decline in the economy also warrants the need for an additional

auditor due to the serious financial repercussions that could affect daily or long term operations, some direct and some indirect.

The expansion of staff is needed to maintain and support the need of promoting accountability and integrity in city operations.

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How We Compare

City # of FTEs Budget % Auditors Per 1,000 FTEs

Auditors Per Capita

VA BEACH 6 .07% .58 110,312

VA BEACH w/New Position

7 .08% .73 88,249

CHESAPEAKE 6 .14% 1.13 56,475

NORFOLK 8 .11% 1.18 40,664

CHESTERFIELD 9.5 .19% 2.12 42,619

HENRICO 7 .07% 0.64 103,581

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Independent Financial Services - 18050 Operating Budget


FY 13-14 Proposed Change FY 13 Amended to

FY 14 Proposed

Independent Financial Services Budget #18050

153,878 153,878 $ 6,214 4.0%

Total $153,878 $153,878 $ 6,214 4.0%

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Recommendation of funding by Management Services

This funding relates strictly to the payment of our external auditors. We are currently in new City contract, year 1 of 3. If this amount is not restored we will not be able to

pay our current contracted rate. Funding for Independent Financial Services is not

included in the Office of the City Auditor’s Operating Budget. It is funded through a non-departmental budget unit.

External audit of the CAFR is mandated by the Virginia Code.

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Independent Financial Services - 18050 Operating Budget

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Conclusions

In this economic climate where fraud, waste and abuse can run rampant and resources must be safeguarded, we respectfully request the funding recommendation made by Management Services and the additional FTE be granted to the Office of the City Auditor so that we may continue to serve our citizens, city leadership/members, Audit Committee and City Council in an undiminished capacity.

Municipal Council and City Clerk’s Office


Ruth Hodges Fraser, MMC City Clerk

Municipal Council Operating Budget


FY 12-13 FTE

FY 13-14 Proposed

FY 12-13 FTE


Municipal Council $ 545,118 11.0 $ 533,110 11.0 ($ 12,008) (2.2%)

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3

$533,110 100%

General Fund

$340,818 63.9%

$192,292 36.1%

Pesonnel Operations

Budget by Fund


Municipal Council FY 2013-14 Budget

City Clerk Operating Budget


FY 12-13 FTE

FY 13-14 Proposed

FY 13-14 FTE


City Clerk $ 574,443 6.0 $ 564,215 6.0 ($ 10,228) (1.8%)

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$564,215 100%

General Fund

$504,057 89.3%

$60,158 10.7%

Pesonnel Operations

Budget by Fund


City Clerk’s Office FY 2013-14 Budget

Real Estate Assessor


Jerald Banagan

Real Estate Assessor Operating Budget Program Unit FY 12-13


FY 13-14 Proposed

FY 13-14 FTE


Proposed

Real Estate Assessor $3,100,676 34.0 $3,183,950 34.0 $83,274 2.7%

Total $3,100,676 34.0 $3,183,950 34.0 $83,274 2.7%

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3

$2,954,762 92.8%

$229,188 7.2%



FY 2013-14 Budget

Real Estate Assessor’s Significant Issues In November, responsibility for the real estate transfer process

transferred from the Commissioner of the Revenue to the Assessor’s Office. Coinciding with this transfer, our office experienced two vacancies. We were able to hire an experienced real estate transfer clerk from the Commissioner’s office and an experienced title examiner from the private sector. The transition of responsibility has gone very well.

State statute only requires an assessment notice to be mailed when values change. At Council’s direction we have been, for the past several years, mailing notices to all owners regardless of whether there was a value change. In addition to the notice, we include an assessment brochure and a notice regarding senior citizen’s and disabled veteran’s exemption programs. The past several years, the cost of sending notices to owners of property without a value change has ranged from $6,000 to $37,000. I respectfully wish to verify, is this a policy you want to continue?

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Commissioner of the Revenue


Philip J. Kellam, Commissioner

Commissioner of the Revenue Operating Budget

Program Unit FY 12-13

Amended FY 12-13

FTE FY 13-14 Proposed

FY 13-14 FTE


Proposed

Commissioner of the Revenue $4,015,519 60.0 $3,970,472 60.0 $(45,047) (1.1%)

DMV Select $84,091 2.93 $71,943 2.93 $(12,148) (14.4%)

Total $4,099,610 62.93 $4,042,415 62.93 $(57,195) (1.4%)

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$3,216,853

80%

$664,562 16%

$161,000 4%

General Fund State Reimbursement DMV Select

$3,765,748 93.2%

$70,615 1.7%

$95,532 2.4% $110,520

2.7%

Personnel Contractual ServicesInternal Services Other Operating

Commissioner of the Revenue FY 2013-14 Budget

New Assessment & Enforcement Requirements with the Boat Tax

• Annual assessments must be completed by May. • 1.5 additional FTE’s (Revenue Agents) dedicated to taxpayer

inquiries, managing new data, and mitigation of assessments.

• 1 additional FTE (Revenue Investigator) dedicated to active enforcement and taxpayer compliance.

RACS

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Commissioner of the Revenue Significant Issues

Commissioner of the Revenue Trends & Highlights

Comparison Difference

2012 2013 # %

Real Estate Tax Relief Applications 7,600 7,440 (160) (2%)

Personal Property – Annual Book $117,538,827 $119,798,225 $2,259,398 2%

Business License through March $38,392,136 $40,328,250 $1,936,114 5%

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The Commissioner of the Revenue is staffed to meet current workloads, however, if the boat tax is reinstated, we will require an additional 2.5 FTE’s.

Commissioner of the Revenue Conclusion

General Registrar


Donna Patterson

General Registrar Operating Budget Program Unit FY 12-13


FY 13-14 Proposed

FY 13-14 FTE


Proposed

Total Budget $1,371,332 12.03 $1,343,936 12.03 $(27,396) (2%)

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3

$1,267,288 94%

$76,648 6%

Local Revenue State Revenue

$896,297 67%

$447,639 33%




FY 2013-14 Budget

General Registrar Significant Issues

Electronic Pollbooks - 190 new laptops purchased Voting Machine replacement

Vendor Demonstration on March 29, 2013 Dominion ES & S/ Print Elect Hart Unisyn

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General Registrar

FY 2013-14 Trends & Highlights

The 14th Senate District Special Election in August 2013 Gubernatorial Election Splitting Precincts Creating additional workspace at building 14

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Critical Services NOT Funded

Two additional positions were requested but were not approved.

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Conclusions

The Special Election in August will be a very small election with an estimated 3% turnout. The November Election is the City’s second largest Election – Estimated turnout is 37%

City Manager’s Office Budget Workshop April 30, 2013

James K. Spore City Manager

City Manager’s Office Operating Budget


FY 12-13 FTE

FY 13-14 Proposed

FY 13-14 FTE


Proposed

City Manager’s Office $1,804,949 12.0 $1,904,707 12.0 $99,758 5.5%

Organization Development Office

$306,602 2.0 $295,661 2.0 ($10,941) (3.6%)

Office of Volunteer Resources

$205,238 2.5 $206,265 2.5 $1,027 0.5%

Media & Communications Group

$337,418 3.0 $230,196 2.0 ($107,222) (31.8%)

Total $2,654,207 19.5 $2,636,829 18.5 ($17,378) (0.7%)

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$2,423,003 91.9%

$213,826 8.1%


Total Budget: $2,636,829

City Manager’s Office FY 2013-14 Budget

32 29.7

26.2

23 21.5

19.5

0

5

10

15

20

25

30

35

FY 07-08 FY 08-09 FY 09-10 FY 10-11 FY 11-12 FY 12-13 FY 13-14

City Manager’s Office FTE Trend

FTE

Proposed

18.5

City Manager’s Office Significant Issues

Slow economic recovery further impacted by sequestration.

BRAC in 2015 and reduced military expenditures. Increased pressure on State and Federal governments

to reduce funding to localities. Rising cost of health care, retirement, life insurance

coverage and energy. Increased requests for Organization Development

Office (ODO) assistance from departments for larger projects and to manage the impact of change.

33% reduction in Media and Communications Group (MCG) staff.

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City Manager’s Office FY 2013-14 Trends & Highlights

Number of media inquiries managed by Media and

Communications Group (MCG) increased 60% in the past year – from approximately 300 to approximately 500. The ability to meet media needs will decline with reduction in staff.

Speeches and remarks written for Mayor and City Council in 2012 up 29% from 2011.

Number of large projects the City is considering (Dome site, light rail, SGA developments, arena proposal, etc.) has increased, resulting in more complex issues attracting greater media interest and increasing impact on staff resources.

Need for citizen outreach and town hall meetings has increased while ODO and MCG staff has been reduced.

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City Manager’s Office FY 2013-14 Trends & Highlights (cont’d)

Due to the FY13 reduction in staff, the Organization Development Office

reduced formal trainings and events in order to manage department requests.

Office of Volunteer Resources supports volunteers and Volunteer Resource Managers with more than 18,900 individuals expected to volunteer over 1,370,000 hours. This service is valued at over $19,822,000.

“Neighbors Helping Neighbors” program furthers the growth of volunteerism through collaboration and use of technology.

2,812 legislative items of interest to the City coordinated. Initiated the Urban Crescent Transportation Coalition which led to HB

2313 being passed. Received appropriation for nourishment of resort area beach. Received $7.5 million for BRAC compliance program. Vast majority of City Council’s Legislative Agenda items successfully

addressed. Responses to over 4,375 citizen concerns and requests for information.

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Critical Services NOT Funded

Reduction of one full-time Media & Communications Administrator • Elimination of this position will affect the City’s ability to

address media inquiries, reduce communications capacity during activation of the Emergency Operations Center and increase the workload of the remaining two staff in the Media & Communications Group.

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