fy 2015 proposed budget in brief final

City of Norfolk

This budget continues our focus on building a data-driven organi-zation that provides effective and efficient programs and services. To that end, we used the following principles to guide the FY 2015 budget development process.

Establish a sustainable long-term financial plan

Eliminate structural imbalance

Centralize internal functions to strengthen core operations and provide enhanced services

Eliminate redundancies to create efficiency

Consolidate funding streams to maximize impacts

Maintain or enhance service levels

City’s Six Priorities

The city’s six priorities define what success looks like and ensure we are effective (doing the right things) and efficient (doing them well). The six priorities are:

Guiding Principles

Established 2011

Guiding Principles

City of Norfolk

Highlights

Focuses on three priorities: Well-Managed Government; Safe, Healthy, and Inclusive Communities; and Lifelong Learning.

Presents a Proposed FY 2015 Budget that is $5.1 million less than the Approved FY 2014 Budget while maintaining or ex-panding service levels.

Initiates best practices to evaluate programs, services, and department structures to create efficiencies that enhance ser-vices

Brings together existing city resources under one umbrella in the new Department of Neighborhood Development

Transitions Waste Management to a self-sustaining operation

Begins the implementation of Attraction, Retention, Motiva-tion and Development (ARMD) initiative to further the Em-ployer of Choice initiative

Increases support for homeless programs and housing assis-tance

Enhances service levels with the opening of Slover Memorial Library and the Consolidated Courthouse in FY 2015

Achieves a structurally balanced budget four years ahead of schedule in accordance with City Council’s approved city finan-cial policies

Proposed FY 2015 Budget

FY 2015 Budget Highlights

City of Norfolk

A Better Norfolk

Groundwork for a Well-Managed Government


City of Norfolk

A Better Norfolk

...and a Resilient City

Norfolk was named one of the first 33 cities across the world to join the Rockefeller Foundation’s 100 Resilient Cities Network. Selected cities receive technical support and resources for developing and imple-menting plans for urban resilience

West Freemason was named one of the top ten neighborhoods in the country by the American Planning Association

Standard & Poor’s (S&P), upgraded Norfolk’s bond rating to “AA+,” which is one notch below the highest grade possible, the first upgrade for the city in 50 years

Norfolk became the first city in Vir-ginia to receive a Virginia Values Vet-erans certification for our commit-ment to veteran employment and support programs

The City of Norfolk’s work was recog-nized as an All-America City by the National Civic League. The award recognizes exemplary efforts of com-munity problem solving

The American Public Works Associa-tion gave the city a worldwide man-agement excellence award for waste management


http://www.norfolk.gov/Admin/DocumentCenter



Real Estate Tax Real estate tax revenue is our largest source of locally gener-ated revenue and supports nearly 26 percent of our oper-ating budget. Without consistent and substantial growth in real estate assessments, revenues are not able to keep up with the growth in expenditures.

Sustainable revenue growth is essential to maintaining or enhancing our service levels. In order to maintain or en-hance service levels, we will need to establish a policy to en-sure there is sufficient revenue. Stabilizing our revenue growth should be a focus.

Real Estate Picture

Norfolk Overall Real Estate Assessments and Tax

City of Norfolk

Real Estate Picture

City of Norfolk

Unprecedented Decline in Residential Assessments Residential real estate assessments are projected to decline in FY 2015 for an unprecedented fifth consecutive year. Homeowners will on average see a decrease in their assess-ments and tax bills from last year. Moreover, on average, homeowners will pay about $260 less than in FY 2010 when residential assessments were at their peak.

Real Estate Picture

Page 7 City of Norfolk

Real Estate Picture

Historical Decline in Residential Assessments

Impact of Decline in Assessments on Average Residential Tax

FY 2014: Average homeowner’s tax bill $2,321

FY 2015: Average homeowner’s tax bill (estimated) Average savings from decline in residential assessments

$2,312 -$9

Difference from average homeowners tax bill five years ago -$260

Doing More with Less

Proposed FY 2015 General Fund budget is $812.4 million

Proposed FY 2015 General Fund Budget is $5.1 million less than the FY 2014 General Fund Budget

Budget Overview

City of Norfolk

Budget Overview

General Fund Expenditures—How Each Dollar is Used

FY 2015 Proposed Budget Overview—All Funds

Budget Overview

Fund Approved Budget

General Fund $812,386,625

Enterprise Funds $131,354,377

Special Revenue Funds $59,104,682

Internal Service Fund $100,117,027

Total Operating Funds $1,102,962,711

Capital Improvement Plan $104,053,800

Total Operating and Capital Funds $1,207,016,511

Annual Plan for HUD Block Grants $5,421,897

Total Financial Plan $1,212,438,408

City of Norfolk

Budget Overview

City of Norfolk

A Structurally Balanced Budget The Proposed FY 2015 Budget builds upon City Council ap-proved financial policies. Our commitment to these policies further strengthens the city’s long-term financial sustainabil-ity. The first tenet of the financial policies was to achieve a structurally balanced budget within five years. The Proposed FY 2015 Budget is structurally balanced four years ahead of schedule.

We have been able to achieve a structurally balanced budget with minimal tax and fee increases while maintaining or en-hancing services.

Structural Balance

Structural Balance

City of Norfolk

Two Year Lens—Fiscal Year 2015 and 2016 In developing the Proposed FY 2015 Budget we analyzed

each budget action through a two year lens. In order for the

city to maintain or enhance services, we must not only look

at how programs and services impact the city in one fiscal

year, but also in the following years.

In the past, we added new initiatives, restored programs,

provided compensation increases, or increased support for

Norfolk Public Schools using one-time revenues. These prac-

tices led to future financial instability.

Although our proposed budget is structurally balanced this

year, it is not sustainable in FY 2016. We are projecting a

preliminary gap of approximately $9.0 million to maintain

the same level of service next year. We need to focus on a

policy to stabilize our revenue to ensure we can continue to

provide the services our residents and businesses receive

today.

Looking Ahead

Looking Ahead

City of Norfolk

Our Approach to Funding Results

Major Budget Balancing Strategies Several cost containment strategies were employed to achieve a structural balance. Strategies used were:

Step 1: Level funded budgets in FY 2015 (savings of $3.7 million)

Step 2: Reduced most department budgets by one per-cent (savings of $3.2 million)

Step 3: Captured retirement savings and restructured debt services payments (savings of $7.5 million)

Major Budget Balancing Strategies

We fund strategies focused on outcomes

We aligned outcomes with priorities

We are holding departments accountable to achieve out-comes within existing budgets


City of Norfolk

Police, Fire-Rescue, and the Sheriff are partially exempted from step one and two of the major budget balancing strat-egies. Norfolk Public Schools Held Harmless

No cuts are proposed for Norfolk Public Schools (NPS.) NPS

will receive the same amount of city funding as last year.

Even as local revenues decrease city support for NPS remains constant. In comparison to some of our surrounding locali-ties, who decrease support for schools as local revenue de-creases, we are maintaining support.



We planned year round, achieved a structural balance, ana-

lyzed budgets through a two year lens, and created in-house

analysis teams for the city to focus on its priorities. The pri-

ority of Well-Managed Government is the foundation from

which we developed the efficiency and accountability initia-

tives that will allow us to maintain or enhance service levels

despite a reduction in local revenue.

Norfolk Healthcare Consortium

The city transitioned to a self-administered

healthcare model in January 2014. As a result,

in calendar year 2014 the Healthcare Consorti-

um which includes Norfolk Public Schools and

Norfolk Redevelopment and Housing Authority avoided $6.0

million in cost from this change.

Aligned Fees and Charges to Fully Recover Costs A modest fee increase in FY 2015 will allow Waste Man-agement services to become self-sustaining and transition out of the General Fund. This transition will allow Waste Management to establish a reliable vehicle replacement plan and increase capacity in the General Fund for the pur-chase of other city vehicles and technology.

Well-Managed Government

City of Norfolk


In-House Analysis Teams: ESET and SWAT

Rather than use external consultants to provide recommen-dations for efficiency strategies, the city formed two in-house analysis teams, the Executive Strategic Evaluation Team (ESET) and Strategic Workforce Analysis Team (SWAT.) These two teams evaluate selected programs, services, and the or-ganizational structure of departments.

The teams identified opportunities to cre-ate efficiency improvements, enhance services, and initiate industry best prac-tices through:

Centralizing Maintenance Operations

Expanding Privatization of Custodial Services

Centralizing Financial Operations

Streamlining Public Safety Financial Management

Streamlining Human Services Administrative Services

Enhancing Employee Recruitment

Transitioning Waste Management to Self-Supporting

Transitioning Norfolk Community Services Board to Gen-eral Fund


City of Norfolk


City of Norfolk

Employer of Choice High quality employees deliver high quality services efficient-ly and effectively. To ensure Norfolk attracts and retains high quality employees we will begin implementation of our three year Attraction, Retention, Motivation, and Development (ARMD) Initiative in FY 2015.



City of Norfolk

Attraction, Retention, Motivation, and Development In FY 2015, we will take a number of first steps in our three year ARMD Initiative. The FY 2015 ARMD Initiative includes:

A living wage for all permanent employees.

Market rate adjustments for employees earning significant-

ly less than their regional counterparts by January 2015.

A two percent General Wage Increase (GWI) for all general

and Constitutional Officer employees by January 2015.

A step increase for all Sworn Police and Firefighters by Janu-

ary 2015.

A Deferred Retirement Option Program (DROP) for eligible

sworn Police and Firefighters in January 2015. This pro-

gram will provide a significant lump sum payment for eligi-

ble retirees who delay retirement for four years.

A five percent salary increase and a corresponding five per-cent employee contribution to the Norfolk Employee’s Re-tirement System (NERS) for employees who do not current-ly contribute to NERS. By doing this, we will increase future retirement benefits for nearly 2,900 current city employees.



City of Norfolk

FY 2015 General Fund Revenues by Source

Operating Budget at a Glance


City of Norfolk

FY 2015 General Fund Expenditures by Area


Over 1/3 of the city’s Proposed Budget is dedicated to Norfolk Public Schools


City of Norfolk

The Capital Improvement Plan (CIP) is a multi-year plan for the con-struction, renovation or replacement of the city’s buildings, parks, infrastructure and other physical assets. The CIP functions like a cred-it card. We can buy things today with the promise to repay the lender in the future. While the initial payment may be low, as borrowing increases, the payments continue to grow.

The city’s General Fund CIP is guided by two measures of affordabil-ity; one measure is tied to the value of revenue producing real prop-erty with the second measure being a proportionate share of the General Fund budget. These measures, or self-imposed debt limits, are as follows:

Debt Service as a percent of the General Fund budget (not-to-exceed 10 percent)

Net debt as a percent of taxable real estate (not-to-exceed 3.5 percent)

The city meets both these measures in FY 2015

Capital Budget at a Glance


City of Norfolk

The Proposed FY 2015 CIP is about Neighborhoods and Schools

About 79 percent of CIP funding is dedicated to the construc-tion or maintenance of schools and neighborhood develop-ment reflecting the city’s commitment to our residents and our children.


Proposed FY 2015 Capital Improvement Plan Major Categories

(In Millions)


FY 2015 Neighborhood Projects


CIP Projects Amount

Implement Broad Creek Neighborhood Plan $1,000,000

Implement Southside Neighborhood Plan $1,000,000

Implement Wards Corner Neighborhood Plan $1,000,000

Implement Fairmount Park/Lafayette Blvd Neighborhood Plan

$750,000

Revitalize, Redevelop, and Conserve Neigh-borhoods

$2,500,000

Support Citywide Public Art $250,000

Address Street Flooding Citywide $1,500,000

Control Beach Erosion $500,000

Improve Citywide Dreding and Waterways $150,000

Improve Community and Neighborhood Parks $250,000

Develop Bicycle, Pedestrian Greenways, and Sharrows

$250,000

Enhance Signals and Intersections $200,000

Repair and Maintain Bridges—Minor $250,000

Repair and Maintain Bridges—Major $1,000,000

Repair Terminal Blvd—Concrete Pavement $1,750,000

Improve Neighborhood Streets-Major $300,000

Improve Street Lights $100,000

Repair Neighborhood Streets/Sidewalks/Walkways

$250,000

Support Norfolk Studios Program $500,000

Improve Downtown Corridor Streetscaping $100,000

Improve Infrastructure and Improve Property $1,000,000

Total $14,600,000

City of Norfolk


Norfolk Public Schools The single biggest driver of our Capital Improvement Plan (CIP) moving forward is school construction, renovation, and mainte-nance funding. The city is spending more than $10.0 million on debt service for school construction in FY 2015. The amount is expected to increase to nearly $20.0 million by FY 2019. The city is committed to building schools that will enhance the educational experience of Norfolk’s students. The Five-Year CIP contains funds to build five schools, Campostella, a school in the Broad Creek Area, Ocean View, Larchmont, and Camp Allen.


City of Norfolk


The Proposed FY 2015 CIP in-cludes $101 million for school construction and maintenance

City of Norfolk

The priority of Lifelong Learning is a commitment to support a culture of learning and development for residents of all ag-es.

The Colonel Samuel L. Slover Memorial Library (Slover) is

scheduled to open in January 2015 The proposed FY 2015 budget continues our commitment to make Slover the most technologi-cally advanced mu-nicipal library. To ensure the library has the most re-cent technological advances, $1.5 mil-lion is provided within the FY 2015 CIP. The Proposed FY 2015 CIP also includes funding to design, construct, and furnish the Broad Creek Anchor Branch Library.

Lifelong Learning

Colonel Samuel L. Slover Memorial Library

Lifelong Learning

City of Norfolk

Lifelong Learning

Early Childhood Education

Lifelong Learning

Lifelong Learning

City of Norfolk

Lifelong Learning

Creating Best Practices with our Partners

The city is a member of Collective Impact, United for Children: Young Terrace. The city partners with Norfolk Public Schools, local universities, businesses, non-profits, and community-based organizations to assist chil-dren living in Young Terrace by focusing on education, character-building, and healthy living.

Norfolk Ready By Five works with the Vir-ginia Star Quality Initiative to rate and improve the quality of the early education system. The initiative encourages early education providers to be rated for quali-ty. Providers are then eligible to receive resources to improve the quality of edu-cation they are providing our children.

Norfolk will be home to New School, to be opened and operated by Elevate Early Education (E3) initiative. The New School will be a data-driven, mixed income, early education facility. The school will provide a pre-k model for the Commonwealth.

Lifelong Learning

City of Norfolk

City’s Commitment to Norfolk Public Schools in FY 2015

City of Norfolk

Lifelong Learning Norfolk Public Schools

Lifelong Learning

Average Daily Membership Continues to Decline Average Daily Membership (ADM) is the student enrollment count that determines the level of state funding NPS re-ceives. In FY 2015 Norfolk Public Schools projects ADM to decline by 390 students from 29,805 to 29,415. As schools lose students, the state decreases financial support, however the city does not. The city will provide more local resources per student in FY 2015.

Operating Budget at Glance Lifelong Learning Norfolk Public Schools

City of Norfolk

Lifelong Learning

Average Daily Membership Continues to Decline

Operating Budget at Glance Operating Budget at Glance

Norfolk Spends the Most per Student in the Region Per Pupil Expenditure (PPE) is the statistic that measures the amount of money put toward general education for each student. Each spring the Virginia Department of Edu-cation Superintendent’s Annual Report for Virginia pro-vides a yearly PPE comparison for each school division in the Commonwealth. The most recent report indicates that Norfolk spends the most per student in the Hampton Roads region.

Lifelong Learning Norfolk Public Schools

City of Norfolk

Lifelong Learning

FY 2013 Per Pupil Expenditure

City of Norfolk

Neighborhoods are the fabric of our community. We are looking at Neighborhoods with a different lens. In FY 2015 the city will implement a new service delivery model focused on neighborhood collaboration and community problem solving.

Focusing on Neighborhoods The Proposed FY 2015 Budget cre-ates the Department of Neighbor-hood Development. We will unify all neighborhood programs under

one umbrella. We will change what was a fragmented ap-proach to neighborhoods into a focused, responsive, and col-laborative effort that will maximize our resources and act as an advocate for our residents.

Safe, Healthy, and Inclusive Communities


City of Norfolk

Investment in Our Neighborhoods In FY 2015 the city, with our com-munity partners, will provide more than $26 million in support for our communities. There is support for:

Four neighborhood plans;

NRHA’s Revitalize, Redevelop, and Conserve neighbor-hoods project;

Repairing of neighborhood streets, sidewalks, and walk-ways;

Improving street lighting and neighborhood amenities;

Improving community and neighborhood parks;

Implementing of the Recreation, Parks, and Open Space Master Plan; and

Designing a boxing facility in Barraud Park.



City of Norfolk

The way we work, travel, commute, access data and connect

with one another is transforming rapidly. The priority of Ac-

cessibility, Mobility and Connectivity guides our efforts to

communicate with residents and provide access to jobs,

shopping, recreational activities, medical facilities, and other

community locations.

There are several initiatives planned or ongoing that will im-

prove programs and services for our residents. These ac-

tions include:

The continued development

of the one-stop Develop-

ment Services Center on-

line permitting process to

create a more friendly environment and experience for

residential and commercial permit requests.

Expanding use of social media sites

such as Facebook and Twitter to dis-

seminate public information to a

growing “wired” community.

“We Roll Together”—a campaign

to make Norfolk more bike friend-

ly. The program will education

motorists and bicyclists to ‘slow

their roll’, ‘know their role’ and

‘share the road.’

Accessibility, Mobility, and Connectivity

Accessibility, Mobility, and Connectivity

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&docid=AFI8O1czESJ7eM&tbnid=UG8p4n8HrmOp6M:&ved=0CAUQjRw&url=http%3A%2F%2Fupcity.com%2Fblog%2F2013%2F12%2Fhow-to-become-an-authority-on-twitter%2F&ei=MOxXU9G3LcmnsQTjk4G

City of Norfolk

The priority of Economic Vitality and Workforce Develop-ment focuses attention and resources on a growing and di-versified economy that enhances the quality of life for our citizens through a wide range of housing, shopping, educa-tional, cultural, business, and employment opportunities. The Proposed FY 2015 Budget includes a five-cent increase in

the cigarette tax with all proceeds supporting development

related activities. The five-cent increase will be used, in part,

to promote Small, Women-owned and Minority-owned busi-

nesses (SWaM). Norfolk’s cigarette tax will increase from

$.075 per pack of 20 cigarettes to $0.80 per pack of 20 ciga-

rettes.

In addition, we continue to pursue creative and innovative projects like Better Block Norfolk which provides a tempo-rary glimpse at the development potential of some of our historically vibrant commercial corridors.

Economic Vitality and Workforce Development

Economic Vitality and Workforce Development

City of Norfolk

When discussions began on the our priority of Environmental Sustainability in 2011, solutions to our environmental challeng-es seemed daunting. Limited funding was available to address our resiliency in instances of flooding, hurricanes, and other natural disasters. Over the last three years, through a holistic lens, we have seen that our environ-mental challenges are connected. We have made steady progress in the development of a flooding strategy and adopted plaNorfolk2030, bringing us closer to creating long-term viable solutions to our environmental chal-lenges. We are One of 33 Cities Around the World Our efforts to promote an economically and environmentally sustainable community have not gone unnoticed. Articles in major publications including the New York Times and Wall

Street Journal on the city’s flooding chal-lenges helped secure our selection as one of the

Rockefeller Foundations 100 Resilient Cities. As one of the first 33 cities in the world to be awarded this distinction we will re-ceive support to, create a resilience strategy, and receive access to tools, technical support, and resources for implementing a comprehensive resilience plan.

Environmental Sustainability

Environmental Sustainability

City of Norfolk

Norfolk is America’s heritage port city where people are transforming

their neighborhoods, economy, and culture into the most fun and

livable waterfront community in the world


Life. Celebrated Daily.

City Council

Paul D. Fraim Mayor

Angelia M. Williams Vice Mayor

Ward 7

Andrew A. Protogyrou Ward 1

Dr. Theresa W. Whibley Ward 2

Alveta V. Green Ward 3

Paul R. Riddick Ward 4

Thomas R. Smigiel Ward 5

Barclay C. Winn Ward 6

Marcus D. Jones City Manager

FY 2015 Budget Calendar

This Budget in Brief includes highlights of the Proposed FY 2015 Budget. For additional details, please visit the city’s website www.norfolk.gov to view information about the budget or read the Proposed Budget Docu-ment. A Proposed Budget Document is also available in each library branch.

Date Event

April 22, 2014 City Manager Presentation of Proposed Budget to Council

April 29, 2014 Public Notice of the Operating,

Capital Improvement Plan and HUD Entitlement Grant Budgets

April 29, 2014 First City Council Work Session

May 7, 2013 Public Hearings on the Operating,

Capital Improvement Plan, and HUD Entitlement Grant Budgets

May 13, 2013 Second City Council Work Session

May 20, 2013 Third City Council Work Session

and Budget Adoption

fy 2015 proposed budget in brief final

Documents

budget fy

city of norfolk highlights

resilient city norfolk

city councils

budget highlights page

balanced budget

city of norfolks work

existing city resources