Danville Forecasts a Brighter Future Budget... · • Produces higher quality instruction in...
Transcript of Danville Forecasts a Brighter Future Budget... · • Produces higher quality instruction in...
Danville Forecasts a Brighter Future
2019-2020 Proposed Budget
Council Continues Focus on Future
• Reduce Violent Crime• Improve Education• Grow Danville (Economic Development)
Crime Rates Fall Dramatically
• Violent Crime Rates Plummet Year to Date– Commercial robberies down 89%– Residential robberies down 57%– Aggravated assaults down 70%– Misdemeanor assaults down 18%
• 2019 Murder Clearance Rate at 82%
Crime Rates Fall Dramatically
• Property Crime Rates Fall Year to Date– Burglaries down 38%– Theft from motor vehicles down 16%– Motor vehicle theft down 20%– All other larcenies down 42%
Crime Rates Fall Dramatically• Established an office of gang
prevention staffed by the Youth and Gang Prevention Coordinator
• Increased focus on community policing
– Neighborhood walks– Coffee with a Cop– Assigned an officer at the
Community and Youth Engagement Liaison
– Police Youth Academy
City Puts Focus on Education• DPS doubles the number of fully accredited schools • DPS raised teacher pay an average of 12% last year
– Nearly 100% of teacher positions filled with licensed teachers• Produces higher quality instruction in classroom• Better student outcomes
• Students earning industry certifications grows rapidly– Jumps 23% from 2017 to 2018
• College enrollment rates continue to improve• On time graduation rates improve 5% from 2014-2018
– Improves to 81% in four years
Local Economy Continues to Roll
• River District Redevelopment– Luxury Hospitality– White Mill Option– New Entertainment– 206/208 N. Union
• Neighborhood revitalization
• Industrial Recruitment– Harlow Group announced– BGF Industries
announced– Essel Propack Expansion– Kyocera Opens Doors
• Workforce Development– Expansion at IALR
• Mega Site Development
Local Economy Continues to Roll
• Economic Development Increases Jobs and Capital Investment– 637 new full time jobs & 79 new part time jobs– $130 million in committed capital investment
• Unemployment down to 4.4% – Down from 8.4% five years ago– Down from 14.1% nine years ago– Lowest in 18 years
Multi-Year Forecasting Results in Millions in Annual Cost Savings
• Health Insurance Plan Design Changes – eliminated projected cost increase ($879,409)
• Dependent Eligibility Verification Audit nearly complete – We anticipate $200,000/year in premium savings
• Employee Health Clinic – A site has been selected and will be open by the end of this fiscal year. Premium savings will be realized in future years.
• Create Tiered Retirement System – Beginning July 1, newly-hired employees will share in the cost of their retirement. By FY 2024, the savings could be as much as $670,000 per year and would continue to increase by as much as $120,000 each year into the future.
Multi-Year Forecasting Results in Millions in Annual Cost Savings
• Reduction in public safety salary costs – due to retirement - $353,684/year
• Fire – Eliminate funding for six Kelly shift positions - $234,570/year
• Police – Consolidate Span of Control –Reorganization of the Police Department by reclassifying three captains and one lieutenant to sergeants (following retirements) - $58,000/year
Current OutlookPresented July 17, 2018
Cost Savings Improves Outlook
• FY 2023 Project is $7.8m better than expected, based on implemented gap-closing techniques
• There is still a long-term gap that needs to be addressed
(1.7) (2.3) (2.9) (3.4) (3.3) (3.9)
25.2 22.9
20.0
16.6 13.3
9.4
(10)
(5)
0
5
10
15
20
25
30
Proposed Budget2020
Projected2021
Projected2022
Projected2023
Projected2024
Projected2025
$ (in
mill
ions
)
FY Surplus /(Deficit)
FY EndingFundBalance
Proposed Budget Improves Financial Forecast
• This forecast shows no additional funds for DPS in future years
(1.7) (3.0) (4.3) (5.5) (5.9) (7.0)
25.2 22.2
17.9
12.4
6.5
(0.5)
(10)
(5)
0
5
10
15
20
25
30
Proposed Budget2020
Projected2021
Projected2022
Projected2023
Projected2024
Projected2025
$ (in
mill
ions
)
FY Surplus /(Deficit)
FY EndingFundBalance
Continued Investment in Schools Requires Additional Resources
• This forecast shows modest increases for DPS in future years
Danville a Low Tax Burden City
• Average household pays $900 less than peer communities– Currently 27.7% lower than the average
• Real estate tax rate remains among state’s lowest– Currently 26 cents lower than state average
Real Property Tax
$0.70
$0.75
$0.80
$0.85
$0.90
$0.95
$1.00
$1.05
$1.10
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Real Property Tax: Danville Historical Trends vs. State Average
Danville Average VA City Rate
Real Property Tax
$0.60
Danville $0.80
$1.55
$1.06
$-
$0.20
$0.40
$0.60
$0.80
$1.00
$1.20
$1.40
$1.60
$1.80
Virginia City Tax Rates
2019 Rates State Average
Tax Rates – Cities with Electric Utilities
$0.76 $0.80
$0.85
$0.99 $1.0621
$1.17 $1.18
$1.268
$-
$0.20
$0.40
$0.60
$0.80
$1.00
$1.20
$1.40
Radford Danville Harrisonburg Franklin Martinsville Bristol Salem Manassas
2017 Meals Tax
4.0%
5.5%
6.5% 6.5% 6.5%7.0% 7.0%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
Manassas Roanoke Danville Lynchburg Martinsville Petersburg Harrisonburg
Budget Proposes Low Taxes; Increased School & EMS Funding
• Real Estate tax to remain among lowest for cities in the state (88 cents per $100 value)
• Cigarette tax revenue for improved EMS service and K-12 education (30 cents/pack)
• Increased personal property tax revenue earmarked for economic development (new rate of $3.60)
Budget Puts Focus on Education and Public Safety Initiatives
• $2.9 million increase in General Fund (excluding transfer of customer service)– $2.3 million increase for Danville Public
Schools– $280,000 increase for Danville Life Saving
Crew
City Remains Focused on Future
• Reduce Violent Crime/ Improve Public Safety– Increase to DLSC– Additional Animal Control
Officer– New Security Cameras– New police equipment– Pay supplement for
Commonwealth Attorney’s Office
– Fire apparatus/equipment
• Improve Education– Competitive teacher pay
• Grow Danville– River District projects– International recruitment– Blight removal &
neighborhood revitalization
– Gateway improvements– Park improvements
City Remains Focused on Future
• Crime/Public Safety $1,553,125• Education $4,300,000• Grow Danville $2,095,530
*Includes a combination of current revenues, debt service, and appropriations from unreserved fund balance
Tax Rate Impact Minimal• Eight-Cent Real Estate Tax Rate increase
– Generates $1.76 million– Average household will have $72 yearly or $6 monthly
increase• Thirty-Cent Cigarette Tax implemented
– Generates $500,000– Comparable to total NC cigarette tax on cigarettes
• Ten-Cent Personal Property Tax Rate Increase– Generates $150,000 first year; $300,000 subsequent years– Average annual increase of $12.60 per year ($15,000 car)