City Council of Williamsburg Retreat Work Sheets: Budget FY 2013 January 21, 2012

Effects of Fall 2011 News Major Anticipated FY13 Cost Increases Options for Savings and Added Revenue (for discussion purposes only)

Financial History and Outlook Charts and Graphs

General Fund Operating History (3 graphs)

Taxable Property Assessments

General Fund Budget Scenarios to FY 2020 (4 charts)

Effect of News in Fall 2011 on Williamsburg’s FY 2013 Budget September 30 school enrollment adds 88 city students, shifting costs from JCC as much as $ 740,000 VRS increases city contribution rate from 16.44% to 21.29% of payroll for FY13/14 is $ 430,000 School announces federal/state revenue reductions, and increased VRS and other costs will create a $7.5 mil gap. If no reductions are made in projected school cost, City portion is $ 740,000 Total impact on FY 2012 budget $1,910,000 As of percent of a $32 mil budget 5.9%

Major Anticipated Cost Increases and Revenue Decreases In Williamsburg’s FY 2013 G.F. Budget

Cost Increases Range ($ thousands) School enrollment cost shift from JCC to Williamsburg $400 to $700 School FY13 city contribution $300 to $500 VRS contribution rate increase 16.4% to 21.3% $350 Health insurance (assuming employee pay all over this amount) $150 Regional Jail and Juvenile Detention increase $150 Total Major Anticipated Cost Increases from $1,350 to $1,850 Revenue Decreases Real estate tax receipts due to lower assessments

Residential $280 to $320 Commercial $240 to $260 Sales tax for education reduction from state $75 to $100 Total Major Anticipated Revenue Decrease from $ 595 to $ 680 Total Negative Impact from $1,945 to $2,530

For Discussion Purposes Only

Options for Savings and Revenue Williamsburg’s FY 2013 G.F. Budget

1. Departmental Operations Reduce General Fund operational budget accounts for city departments in an

average target amount of 3%. Savings estimate: $195,000 2. Departmental Capital Reduce General Fund capital accounts for city departments in an average target

amount of 10%. Savings estimate: $25,000 3. Retiree Health Insurance Terminate retiree health insurance supplement. Savings estimate: $50,000 4. Employee Dental Program Reduce Employee Dental Reimbursement from $2,000 to $1,500 Estimated Savings: $20,000 5. Deferred Compensation Incentive Program Terminate employer contribution to employee deferred compensation ending

incentive program. Savings estimate: $60,000 6. Staffing Reductions Reduce a target of two FTE’s (1.1% of workforce). Savings estimate: $100,000 7. Refuse Change to Curb Side Trash Pickup Only Savings estimate: $55,000 8. Economic Development Fund Reduce economic development contingency account from $100,000 to $50,000. Savings estimate: $50,000

For Discussion Purposes Only

9. Tourism Promotion Reduce funding for tourism promotion (CWF and Alliance) to equal 50% of current

year room tax budget. Savings estimate: $200,000 10. Health Agencies Reduce contributions to outside health agencies (Health Department, Olde Town,

CHIP, Colonial Behavioral Health) by an average target amount of 4%. Savings estimate: $19,000

11. Other Agencies Reduce contributions to other outside agencies (Human Services, Economic

Development, Community Development, Regional agencies, transportation) by an average target amount of 4%.

Savings estimate: $75,000 12. Property Tax Increase property tax above current $.54 per $100; each penny generates $163,000. Added revenue for a five cent increase: $815,000 13. Personal Property Tax Increase personal property tax rate from $3.50 to $4.00 per $100 of value to match

rate in JCC and York. Added revenue estimate: $325,000 14. Cigarette Tax Increase cigarette tax from $.25 per pack, to $.30. Added revenue estimate: $30,000 15. Licenses and Permits Increase various licenses and permit fees an average target rate of 10% over

current budget. Added revenue estimate: $20,000 16. EMS Recovery Increase EMS recovery fees. Added revenue estimate: $100,000 17. Parks and Rec

For Discussion Purposes Only

Increase charges for Parks and Recreation programs an average target rate of 10%

over current year budget. Added revenue estimate: $30,000 18. Interest Income Reallocate interest income from Sales Tax fund back to General Fund Operating to

equal FY13 budget estimate for General Fund interest income. Added operating revenue estimate: $75,000 19. Antennae Fees Transfer fees for private antennas on city tower facilities from the Utility Fund to the

General Fund. Added operating revenue estimate: $150,000 If all options were employed, the FY2013 budget would benefit in the amount of $2,394,000. Examples of Further Savings through Major Service Reductions 1. Eliminate Athletic Programs Estimated Savings: $185,000 2. Close Waller Mill Park Estimated Savings: $110,000 3. Eliminate Local Human Service Programs Estimated Savings: $70,000 4. Eliminate Bus Service (WAT) Estimated Savings: $265,000 5. Eliminate Arts Commission and Festival Williamsburg Funding Estimated Savings: $110,000

For Discussion Purposes Only

$29.2

$30.8

$33.2$34.1

$32.1$31.3

$31.9

$24

$28

$32

$36

FY 2006Actual

FY 2007Actual

FY 2008Actual

FY 2009Actual

FY 2010Actual

FY 2011Actual

FY 2012Budget

millions

Revenues

Expenditures

Operating Budget

General Fund Operating History

$0

$2

$4

$6

$8

$10

$12

$14

$16

$18

$20

FY 2008 FY 2009 FY 2010 FY 2011

Millions

City Depts

RegionalActivities

Schools

Agencies

General Fund Actual Expenditures ‐ FY 2008 thru FY 2011

$0

$1

$2

$3

$4

$5

$6

$7

$8

$9

$10

FY 2008 FY 2009 FY 2010 FY 2011

Millions

Salaries

VRS

Healthcare

Operating

Capital

General Fund Departmental Expenditures ‐ FY 2008 thru FY 2011

City of WilliamsburgTaxable Property Assessments by Year/Type/Class (not including new construction each year)

Billed Fall 2009 Billed Fall 2010 Billed Fall 2011To be billed Fall

2012

Property Type Property Class FY 2010 FY 2010 FY 2011 FY 2011 FY 2012 FY 2012 FY 2013 FY 2013Actual % increase Actual % increase Actual % increase Estimated % increase

Residential Land 396,930,400 5.8% 393,834,800 -0.8% 366,096,000 -7.0% 335,100,000 -8.5%Residential Improvements 801,389,400 17.1% 768,693,000 -4.1% 765,317,100 -0.4% 740,000,000 -3.3%

Total Residential 1,198,319,800 13.1% 1,162,527,800 -3.0% 1,131,413,100 -2.7% 1,075,100,000 -5.0%

Commercial Land 304,867,800 -7.4% 294,178,000 -3.5% 239,496,300 -18.6% 215,918,900 -9.8%Commercial Improvements 389,384,200 -15.9% 370,803,400 -4.8% 365,248,200 -1.5% 340,900,000 -6.7%

Total Commercial 694,252,000 -12.3% 664,981,400 -4.2% 604,744,500 -9.1% 556,818,900 -7.9%

TOTAL 1,892,571,800 2.2% 1,827,509,200 -3.4% 1,736,157,600 -5.0% 1,631,918,900 -6.0%

Taxes Generated at 54 cents/$100 $10,219,888 $9,868,550 $9,375,251 $8,812,362

Residential % 63.3% 63.6% 65.2% 65.9%Commercial % 36.7% 36.4% 34.8% 34.1%

Taxes Generated at 54 cents/$100 $10,219,888 $9,868,550 $9,375,251 $8,812,362

Estimated revenuebased on 98% collection rate: $9,187,746 $8,636,115

@ 99% collection rate: $9,281,499 $8,724,238

One penny on tax rate = $189,257 $182,751 $173,616 $163,192

DATE: January 21, 2012 SUBJECT: Four Revenue/Expenditure Scenarios through 2020 The four charts attached match “worse” and “better” pictures for Williamsburg’s financial future, looking at both revenues and expenditures, assumptions. Four scenarios result: Fiscal Year % Change REVENUE ASSUMPTIONS 13 14 15 16 17 18 19 20 Worse Property Taxes -6 -6 -4 -2 0 2 2 2 Other Local Taxes 0 2 2 2 2 2 2 2 Other 0 2 2 2 2 2 2 2 Better Property Taxes 0 1 3 3 3 3 3 3 Other Local Taxes 2 3 4 4 4 4 4 4 Other 2 3 4 4 4 4 4 4 EXPENDITURE ASSUMPTIONS Worse Departments 2 2 4 4 4 4 4 4 Other/Schools 6 6 4 4 4 4 4 4 Better Departments 0 0 2 2 2 2 2 2 Other/Schools 2 2 2 2 2 2 2 2

Scenario #1: WORSE / WORSE (revenue) (spending)

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2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Millions

OTHER REVENUE

LOCAL TAXES

PROPERTY TAXES

EXPENDITURES

Fiscal Year ‐ Actual Fiscal Year ‐ Projected

City of WilliamsburgGeneral Fund Budget Scenarios to FY 2020

Scenario #2: BETTER / WORSE (revenue) (spending)

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2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Millions

OTHER REVENUE

LOCAL TAXES

PROPERTY TAXES

EXPENDITURES

Fiscal Year ‐ Actual Fiscal Year ‐ Projected

City of WilliamsburgGeneral Fund Budget Scenarios to FY 2020

Scenario #3: WORSE / BETTER (revenue) (spending)

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2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Millions

OTHER REVENUE

LOCAL TAXES

PROPERTY TAXES

EXPENDITURES

Fiscal Year ‐ Actual Fiscal Year ‐ Projected

City of WilliamsburgGeneral Fund Budget Scenarios to FY 2020

Scenario #4: BETTER / BETTER (revenue) (spending)

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2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Millions

OTHER REVENUE

LOCAL TAXES

PROPERTY TAXES

EXPENDITURES

Fiscal Year ‐ Actual Fiscal Year ‐ Projected

City of WilliamsburgGeneral Fund Budget Scenarios to FY 2020