CITY COUNCIL AGENDA J. Lloyd Snook, III, Mayor March 31, 2022 Juandiego Wade, Vice Mayor Sena Magill, Councilor Michael K. Payne, Councilor Brian R. Pinkston, Councilor Kyna Thomas, Clerk Register at www.charlottesville.gov/zoom. This meeting is being held electronically in accordance with a local ordinance amended and re-enacted March 7, 2022, to ensure continuity of government and prevent the spread of disease during a declared State of Emergency. Individuals with disabilities who require assistance or special arrangements to participate in the public meeting may call (434) 970-3182 or submit a request via email to ada@charlottesville.gov. The City of Charlottesville requests that you provide a 48-hour notice so that proper arrangements may be made. 6:00 PM Budget Work Session – FY2023 Budget - Capital Improvement Program (Budget Documents available at https://www.charlottesville.gov/169/Budget) I. Call to Order II. Roll Call III. Work Session IV. Public Comment (Pre-registration for speaking not required; raise hand in webinar when prompted.) V. Adjournment City Manager’s Proposed FY 2023 Operating and Capital Improvement Budget March 31, 2022 BUDGET WORKSESSION #3 CAPITAL IMPROVEMENTS PROGRAM 1 Proposed FY 2023 Operating & Capital Improvement Budget Agenda 1. Proposed 5-Year CIP 2. Planning Commission Recommendations 3. Applicable Financial Policies 4. Potential Amendments budget@charlottesville.gov Office of Budget and www.charlottesville.gov/budget Performance Management 2 Proposed FY 2023 Operating & Capital Improvement Budget Capital Improvements Program 5-Year Spending Plan 1. Five-year financing plan 2. Projects usually cost more than $50,000 3. Generally Non-recurring and Non-operational 4. Projects have useful life of five years or more Not Shown in the 5-Year Plan: 1. Projects Approved in Prior Years  ABNI Projects - $66.2M budget@charlottesville.gov Office of Budget and www.charlottesville.gov/budget Performance Management 3 Proposed FY 2023 Operating & Capital Improvement Budget FY 2023 – 2027 CIP Plan City Manager Proposed CIP FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 Totals Sources of Funds: General fund transfer $ 6,737,940 $ 7,549,378 $ 6,580,400 $ 6,476,400 $ 6,481,098 $ 33,825,216 Year- End Surplus - - - - - $ - Bond issues 16,867,467 85,273,907 9,885,491 9,885,491 - $ 121,912,356 Other 380,500 318,000 318,000 318,000 318,000 $ 1,652,500 Total sources $ 23,985,907 $ 93,141,285 $ 16,783,891 $ 16,679,891 $ 6,799,098 $ 157,390,072 Uses of funds: Education $7,100,000 $75,900,000 $2,150,000 $2,150,000 $1,311,000 $88,611,000 Economic development $95,000 $120,000 $120,000 $120,000 $0 $455,000 Facilities Capital Projects $1,420,491 $1,420,492 $1,420,491 $1,470,491 $1,295,098 $7,027,063 Public safety and justice $1,360,776 $1,306,215 $153,800 $265,000 $0 $3,085,791 Transportation and access $4,919,440 $4,556,178 $4,429,600 $4,414,400 $0 $18,319,618 Parks and recreation $1,475,200 $1,473,400 $895,000 $895,000 $78,000 $4,816,600 Affordable Housing $7,325,000 $8,075,000 $7,325,000 $7,075,000 $4,075,000 $33,875,000 General government $290,000 $290,000 $290,000 $290,000 $40,000 $1,200,000 Total uses $ 23,985,907 $ 93,141,285 $ 16,783,891 $ 16,679,891 $ 6,799,098 $ 157,390,072 budget@charlottesville.gov Office of Budget and www.charlottesville.gov/budget Performance Management 4 Proposed FY 2023 Operating & Capital Improvement Budget EDUCATION Proposed Projected Projected Projected Projected 5 Year Project FY23 FY24 FY25 FY26 FY27 Total CHS Functional Renovation Lump Sum to Schools (City Contribution) 1,200,000 1,200,000 1,200,000 1,200,000 561,000 5,361,000 City Schools HVAC Replacement 750,000 750,000 750,000 750,000 750,000 3,750,000 City Schools Priority Improvement Projects 1,250,000 1,250,000 0 0 0 2,500,000 Charlottesville High School Roof Replacement 1,200,000 0 0 0 0 1,200,000 Charlottesville City School Reconfiguration 2,500,000 72,500,000 0 0 0 75,000,000 School Small Capital Improvements Program 200,000 200,000 200,000 200,000 0 800,000 SUBTOTAL $7,100,000 $75,900,000 $2,150,000 $2,150,000 $1,311,000 $88,611,000 Education $7,100,000 in FY 2023, $88.6M 5-year total budget@charlottesville.gov Office of Budget and www.charlottesville.gov/budget Performance Management 5 Proposed FY 2023 Operating & Capital Improvement Budget FACILITIES CAPITAL PROJECTS Proposed Projected Projected Projected Projected 5 Year Project FY23 FY24 FY25 FY26 FY27 Total Lump Sum to Facilities Capital Projects 1,045,491 1,045,492 1,045,491 1,045,491 1,045,098 5,227,063 City Facility HVAC Replacement 250,000 250,000 250,000 250,000 250,000 1,250,000 City and Schools Solar PV Program 75,000 75,000 75,000 75,000 0 300,000 HVAC Contingency Fund - City Facilities 25,000 25,000 25,000 50,000 0 125,000 HVAC Contingency Fund - School Facilities 25,000 25,000 25,000 50,000 0 125,000 SUBTOTAL 1,420,491 1,420,492 1,420,491 1,470,491 1,295,098 7,027,063 Facilities Projects $1,420,491 in FY 2023, $7.03M 5-year total budget@charlottesville.gov Office of Budget and www.charlottesville.gov/budget Performance Management 6 Proposed FY 2023 Operating & Capital Improvement Budget PUBLIC SAFETY AND JUSTICE Proposed Projected Projected Projected Projected 5 Year Project FY23 FY24 FY25 FY26 FY27 Total Replacement Fire Apparatus 0 1,152,415 0 0 0 1,152,415 Bypass Fire Station - Add'l Funding 1,206,976 0 0 0 0 1,206,976 Police Mobile Data Terminals 45,000 45,000 45,000 75,000 0 210,000 Police Portable Radio Replacement 45,000 45,000 45,000 75,000 0 210,000 Fire Portable Radio Replacement 45,000 45,000 45,000 75,000 0 210,000 Sheriff Portable Radio Replacement 18,800 18,800 18,800 40,000 0 96,400 SUBTOTAL $1,360,776 $1,306,215 $153,800 $265,000 $0 $3,085,791 Public Safety and Justice $1,360,776 in FY 2023, $3.09M 5-year total budget@charlottesville.gov Office of Budget and www.charlottesville.gov/budget Performance Management 7 Proposed FY 2023 Operating & Capital Improvement Budget TRANSPORTATION AND ACCESS Proposed Projected Projected Projected Projected 5 Year Project FY23 FY24 FY25 FY26 FY27 Total New Sidewalks 100,000 100,000 100,000 100,000 0 400,000 Sidewalk Repair 500,000 500,000 500,000 500,000 0 2,000,000 SIA Immediate Implementation 200,000 200,000 200,000 200,000 0 800,000 Small Area Plans 100,000 100,000 100,000 100,000 0 400,000 Street Milling and Paving 1,250,000 1,500,000 1,500,000 1,500,000 0 5,750,000 ADA Pedestrian Signal Upgrades 240,000 240,000 240,000 240,000 0 960,000 Minor Bridge Repairs 225,000 225,000 225,000 225,000 0 900,000 Citywide ADA Improvements - Sidewalks and Curbs 200,000 200,000 200,000 200,000 0 800,000 Traffic Signal Infrastructure Replacement 500,000 500,000 500,000 500,000 0 2,000,000 Market Street Garage Concrete Structural Repairs 683,000 0 0 0 0 683,000 State Bridge and Highway Inspections 60,000 75,000 100,000 100,000 0 335,000 CAT Transit Bus Replacement Match 139,510 114,400 114,400 114,400 0 482,710 Intelligent Transportation System 150,000 150,000 185,000 185,000 0 670,000 City Wide Traffic Engineering Improvements 100,000 137,800 150,000 150,000 0 537,800 Neighborhood Transportation Improvements 50,000 50,000 50,000 50,000 0 200,000 Bicycle Infrastructure 137,000 150,000 165,200 150,000 0 602,200 Right of Way Appurtenance 25,000 75,000 100,000 100,000 0 300,000 Traffic Sign Retro Reflective Compliance 75,000 100,000 0 0 0 175,000 ADA Ramp Corrections 134,930 138,978 0 0 0 273,908 Historic District and Entrance Corridor Design Guidelines 50,000 0 0 0 0 50,000 SUBTOTAL $4,919,440 $4,556,178 $4,429,600 $4,414,400 $0 $18,319,618 Transportation and Access $4,919,440 in FY 2023, $18.32M 5-year total budget@charlottesville.gov Office of Budget and www.charlottesville.gov/budget Performance Management 8 Proposed FY 2023 Operating & Capital Improvement Budget PARKS AND RECREATION Projected Projected Projected Projected Projected 5 Year Project FY23 FY24 FY25 FY26 FY27 Total McIntire Park Drainage Corrections $350,000 0 0 0 0 $350,000 Key Recreation Slate Roof Replacement $42,000 $486,000 0 0 0 $528,000 Parks and Recreation Lump Sum Account 300,000 400,000 400,000 400,000 0 1,500,000 Parks and Schools Playground Renovations 112,000 112,000 112,000 112,000 0 448,000 Urban Tree Planting 75,000 75,000 75,000 75,000 0 300,000 Parkland and Trails Acquisition and Development 125,000 125,000 125,000 125,000 0 500,000 Downtown Mall Infrastructure Repairs 78,000 78,000 78,000 78,000 78,000 390,000 Parks and Recreation Comprehensive Master Plan 150,000 0 0 0 0 150,000 Oakwood Cemetery Drainage and Road Issues 45,700 0 0 0 0 45,700 Hazard and Liability Ash Tree Removal 105,000 105,000 105,000 105,000 0 420,000 City/County - Ivy Creek Preservation Study 66,000 92,400 0 0 0 158,400 City/County - Darden Towe Ash Trees 26,500 0 0 0 0 26,500 SUBTOTAL $1,475,200 $1,473,400 $895,000 $895,000 $78,000 $4,816,600 Parks and Recreation $1,475,200 in FY 2023, $4.82M 5-year total budget@charlottesville.gov Office of Budget and www.charlottesville.gov/budget Performance Management 9 Proposed FY 2023 Operating & Capital Improvement Budget ECONOMIC DEVELOPMENT Proposed Projected Projected Projected Projected 5 Year Project FY23 FY24 FY25 FY26 FY27 Total Economic Development Strategic Initiatives 95,000 120,000 120,000 120,000 0 455,000 SUBTOTAL $95,000 $120,000 $120,000 $120,000 $0 $455,000 GENERAL GOVERNMENT Proposed Projected Projected Projected Projected 5 Year Project FY23 FY24 FY25 FY26 FY27 Total Communications Technology Account/Public Access 40,000 40,000 40,000 40,000 40,000 200,000 City Wide IT Strategic Infrastructure 250,000 250,000 250,000 250,000 0 1,000,000 SUBTOTAL $290,000 $290,000 $290,000 $290,000 $40,000 $1,200,000 Economic Development and General Government $385,000 in FY 2023, $1.66M 5-year total budget@charlottesville.gov Office of Budget and www.charlottesville.gov/budget Performance Management 10 Proposed FY 2023 Operating & Capital Improvement Budget AFFORDABLE HOUSING Proposed Projected Projected Projected Projected 5 Year Project FY23 FY24 FY25 FY26 FY27 Total Public Housing Redevelopment - (CRHA) 3,000,000 3,000,000 3,000,000 3,000,000 0 12,000,000 Charlottesville Affordable Housing Fund (CAHF) 925,000 925,000 925,000 925,000 925,000 4,625,000 Supplemental Rental Assistance 900,000 900,000 900,000 900,000 900,000 4,500,000 Friendship Court Infrastructure Improvements 0 2,500,000 0 0 0 2,500,000 Friendship Court Redevelopment - Phase 2 2,500,000 0 0 0 0 2,500,000 Friendship Court Redevelopment - Phase 3 0 750,000 2,500,000 0 0 3,250,000 Friendship Court Redevelopment - Phase 4 0 0 0 2,250,000 2,250,000 4,500,000 SUBTOTAL $7,325,000 $8,075,000 $7,325,000 $7,075,000 $4,075,000 $33,875,000 Affordable Housing $7,325,000 in FY 2023, $33.88M 5-year total budget@charlottesville.gov Office of Budget and www.charlottesville.gov/budget Performance Management 11 Proposed FY 2023 Operating & Capital Improvement Budget CIP Revenues City Manager Proposed CIP Transfer from General Fund 6,737,940 Transfer from General Fund - Mall Vendor Fees 78,000 Contribution from Albemarle County (CATEC) 62,500 Contribution from Schools (Small Cap Program) 200,000 PEG Fee Revenue 40,000 CY 2023 Bond Issue 16,867,467 TOTAL AVAILABLE REVENUES $23,985,907 5-Year Totals $ 33.83 million - Transfer from the General Fund $121.91 million - Bonds $1.65 million - Miscellaneous budget@charlottesville.gov Office of Budget and www.charlottesville.gov/budget Performance Management 12 Proposed FY 2023 Operating & Capital Improvement Budget Planning Commission Recommendations The Planning Commission held a joint public hearing on December 14, 2021 to provide recommendations on the City’s Capital Improvement Plan for Fiscal Year 2023-27. The Commission recommended approval with the following changes: • Recommend that existing and requested parking structure funding be reduced to the minimum amount necessary to satisfy Charlottesville’s commitment to provide parking for Albemarle County per a 2018 agreement related to the joint General District Court project. $1,317,000 funding removed from CIP • Recommend fully funding project requests for tree planting, new sidewalks, and bicycle infrastructure, and hazardous tree removal. Request of $105,000/year for Ash Tree Removal fully funded – Increase of $30k per year FY 23 – 26 and $100k funding added in FY 23 or New Sidewalks • Recommend reducing funds going toward economic development strategic initiatives, small area plans, and Strategic Investment Area implementation. Decreased FY 23 funding by $55k and $30k per year FY 24 – 26. Total funding decrease of $145k from $600k to $455k budget@charlottesville.gov Office of Budget and www.charlottesville.gov/budget Performance Management 13 Proposed FY 2023 Operating & Capital Improvement Budget Planning Commission Recommendations • Recommend full funding of a request for the Stribling Avenue sidewalk project that developer is proposing to fund upfront as part of a proposed rezoning that Council will consider in 2022. Funding scenario to be presented for Council consideration • Recommend exploration of ways to add enhancements to the Drewary Brown Bridge to honor the Bridge Builders. Directed to Historic Resources Committee • Recommend increasing the budget for the Charlottesville Affordable Housing Fund and finding ways to fund unfunded affordable housing requests. • Recommend reducing the milling and paving line item to a level allows us to maintain a target pavement condition of 65. budget@charlottesville.gov Office of Budget and www.charlottesville.gov/budget Performance Management 14 Proposed FY 2023 Operating & Capital Improvement Budget Financial Policies 10% Debt Ratio "Planning" Ratio of Debt • Variables Subject to Change General Fund Service to Total • Bond Issue Amount – New Projects Fiscal Bond Issue Annual Debt Expenditure General Fund Year Amount (1) Service (2) Budget (3) Expenditures and Projects Previously Approved 2016 11,125,466 9,128,798 156,391,435 5.84% • Timing of Bond Issues 2017 11,140,000 10,103,067 162,018,737 6.24% 2018 4,610,000 10,615,335 171,657,127 6.18% • Interest Rates 2019 9,520,000 10,375,167 179,725,535 5.77% • General Fund Growth 2020 2021 - 22,655,000 10,743,891 10,684,789 188,863,920 191,195,873 5.69% 5.59% • Variable Relationships 2022 15,000,000 11,465,809 192,212,843 5.97% • More Debt = Higher Annual Debt 2023 17,500,000 11,415,230 206,964,265 5.52% Service 2024 28,000,000 13,335,739 217,489,345 6.13% 2025 36,500,000 15,013,379 220,751,685 6.80% • Reduced Capacity = shrinking 2026 2027 28,000,000 15,000,000 17,124,956 19,029,277 224,062,960 227,423,905 7.64% 8.37% General Fund Budget, higher 2028 15,000,000 19,246,935 230,835,263 8.34% Interest Rates 2029 15,000,000 19,589,552 234,297,792 8.36% 2030 15,000,000 19,737,966 237,812,259 8.30% • Increased Capacity = General Fund 2031 2032 15,000,000 15,000,000 20,149,782 20,559,626 241,379,443 245,000,135 8.35% 8.39% Growth, stable/lower interest rates budget@charlottesville.gov Office of Budget and www.charlottesville.gov/budget Performance Management 15 Proposed FY 2023 Operating & Capital Improvement Budget Financial Policies 3% PayGo Policy 3% PayGo Policy budget@charlottesville.gov Office of Budget and www.charlottesville.gov/budget Performance Management 16 Proposed FY 2023 Operating & Capital Improvement Budget Financial Policies Peer Localities budget@charlottesville.gov Office of Budget and www.charlottesville.gov/budget Performance Management 17 Proposed FY 2023 Operating & Capital Improvement Budget Potential CIP Amendments Council Considerations +$4.9M Transportation and Access • Stribling Avenue Sidewalk • Meadowcreek Trail – Section 3 -$6.2M Education • School Reconfiguration Project – from $75M to $68.8M +$4.95M Affordable Housing • PHA – MACAA Apartments - $3M • PHA – Park Street Apartments - $1.95M budget@charlottesville.gov Office of Budget and www.charlottesville.gov/budget Performance Management 18 Proposed FY 2023 Operating & Capital Improvement Budget Potential CIP Amendments Stribling Avenue Sidewalk Proposed Projected Projected Projected Projected 5 Year Total FY23 FY24 FY25 FY26 FY27 Revenues Transfer from General Fund 0 0 0 0 0 0 Developer Financing Agreement 0 0 2,900,000 0 0 2,900,000 Bond Previously Authorized - Parking Garage 0 0 1,317,000 0 0 1,317,000 TOTAL AVAILABLE REVENUES $0 $0 $4,217,000 $0 $0 $4,217,000 TRANSPORTATION AND ACCESS Proposed Projected Projected Projected Projected 5 Year Project FY23 FY24 FY25 FY26 FY27 Total Stribling Sidewalk 0 0 4,217,000 0 0 4,217,000 SUBTOTAL $0 $0 $4,217,000 $0 $0 $4,217,000 budget@charlottesville.gov Office of Budget and www.charlottesville.gov/budget Performance Management 19 Proposed FY 2023 Operating & Capital Improvement Budget Potential CIP Amendments School Reconfiguration Project Debt Scenarios Bond Funding Scenarios for School Reconfiguration $ 54,000,000 $ 50,000,000 Potential Additional Cash Funding FY 2021 Year-End Surplus $ 6,700,000 $ 6,700,000 Potential ARP Funding from Schools $ 7,500,000 $ 7,500,000 Other Cash Source $ 600,000 $ 4,600,000 Total Other Cash Sources Identified to Date $ 14,800,000 $ 18,800,000 Total Project Funding $ 68,800,000 $ 68,800,000 Annual Incremental Debt Service Transfer Increase - 3 years $ 1,947,112 $ 1,855,154 Lump Sum Debt Service Transfer Increase $ 5,101,674 $ 4,869,779 FY 2023 Tax Increase Equivalent* $0.5500 $0.5250 budget@charlottesville.gov Office of Budget and www.charlottesville.gov/budget Performance Management 20 Proposed FY 2023 Operating & Capital Improvement Budget Potential CIP Amendments PHA Affordable Housing Projects Proposed Projected Projected Projected Projected 5 Year Total FY23 FY24 FY25 FY26 FY27 Revenues Transfer from General Fund 0 0 4,950,000 0 0 4,950,000 TOTAL AVAILABLE REVENUES $0 $0 $4,950,000 $0 $0 $4,950,000 AFFORDABLE HOUSING Proposed Projected Projected Projected Projected 5 Year Project FY23 FY24 FY25 FY26 FY27 Total PHA - MACAA Apartments 0 0 3,000,000 0 0 3,000,000 PHA - Park Street Apartments 0 0 1,950,000 0 0 1,950,000 SUBTOTAL $0 $0 $4,950,000 $0 $0 $4,950,000 Annual GF Transfer Change Proposed Projected Projected Projected Projected 5 Year Total FY23 FY24 FY25 FY26 FY27 Revenues Transfer from General Fund - Already Programmed 6,737,940 7,549,378 6,580,400 6,476,400 6,481,098 33,825,216 Additional Cash for PHA Projects 4,950,000 4,950,000 6,737,940 7,549,378 11,530,400 6,476,400 6,481,098 38,775,216 Year to Year Change 811,438 3,981,022 (5,054,000) 4,698 budget@charlottesville.gov Office of Budget and www.charlottesville.gov/budget Performance Management 21 Proposed FY 2023 Operating & Capital Improvement Budget FY 2023 Revenue Amendments Revised Projections Manager's Recommended FY 23 Revenue Estimates $ 216,171,432 Amendments to FY 23 Revenue Estimates Decrease Revenues Taxes Virginia Communications Sales and Use Tax (75,000) Increase Revenues Taxes Personal Property Tax (using current rate of $4.20/$100) 2,000,000 Utility Taxes 100,000 Sales & Use Tax 900,000 Transient Room Tax 500,000 Meals Tax 25,000 Licenses and Permits Business & Professional Licenses 300,000 Designated Revenues Meals Tax Designated for the Debt Service Fund 26 Total Revenue Amendments $ 3,750,026 Total Amended FY 23 General Fund Revenue Estimates $ 219,921,458 budget@charlottesville.gov Office of Budget and www.charlottesville.gov/budget Performance Management 22 Proposed FY 2023 Operating & Capital Improvement Budget FY 2022 Revised Revenue Revised Projections FY 2022 FY 2022 Local Taxes Budget Revised Change Real Estate Tax (using current rate of $0.95/$100) $ 80,277,442 $ 83,722,339 $ 3,444,897 Personal Property Tax (using current rate of $4.20/$100) 9,741,000 10,641,000 900,000 Public Service Tax 1,542,930 1,589,086 46,156 Utility Taxes 4,500,000 4,590,000 90,000 Virginia Communications Sales and Use Tax 2,400,000 2,270,000 (130,000) Tax on Bank Stock 1,200,000 1,157,411 (42,589) Tax on Wills & Deeds 725,000 1,000,000 275,000 Sales & Use Tax 12,000,000 13,900,000 1,900,000 Transient Room Tax 5,000,000 7,000,000 2,000,000 Meals Tax 10,700,000 12,825,000 2,125,000 Cigarette Tax 550,000 450,000 (100,000) Licenses and Permits Business & Professional Licenses $ 7,000,000 $ 8,700,000 1,700,000 Charges for Services Recreation Income $ 1,665,859 $ 1,472,699 (193,160) Designated Revenues Meals Tax Designated for the Debt Service Fund $ 2,140,000 $ 2,565,000 $ 425,000 Total Revenue Budget Surplus $ 12,440,304 budget@charlottesville.gov Office of Budget and www.charlottesville.gov/budget Performance Management 23 Proposed FY 2023 Operating & Capital Improvement Budget A Path Forward Potential Funding Scenarios FY 2023 CIP PROJECTED FY 2022 Amendments Contingency Revenue Budget Surplus Potential Funding Available (assumes NO change in current tax rates) $ 3,750,026 $ 11,433,191 $ 12,440,304 Potential CIP Amendments School Reconfiguration - $54M Bond Scenario (1st year of Add'l Debt Service) 1,947,112 School Reconfiguration - $54M Bond Scenario (Cash Contribution - FY 2021 Surplus) 6,700,000 School Reconfiguration - $54M Bond Scenario (Additional Cash Needed to get to $68.8M) 600,000 School Reconfiguration - $54M Bond Scenario (Years 2 of Add'l Debt Service) 1,947,112 School Reconfiguration - $54M Bond Scenario (Years 3 of Add'l Debt Service) 1,947,112 PHA Projects - Cash Funded 4,733,191 216,809 Meadowcreek Trail - Section 3 700,000 FY 2023 Budget Amendments The Paramount Theater 7,500 - Festival of Cultures (2,160) Housing Coordinator Position Upgrade 55,514 Procurement - Restore Funding for 1 FTE - Buyer 81,355 Sheriff - Vehicle Replacement (1) 46,500 African American Heritage Center ?? PHAR ?? C4K ?? Public Defender ?? budget@charlottesville.gov Office of Budget and www.charlottesville.gov/budget Performance Management 24 Proposed FY 2023 Operating & Capital Improvement Budget A Path Forward Potential Funding Scenarios FY 2023 CIP PROJECTED FY 2022 Amendments Contingency Revenue Budget Surplus One-Time Considerations DSS - Software Replacement - Foster Care Payments - City Match 150,000 Procurement eSourcing Software 100,000 2 Additional Buses - Route 6 Equity Initiative 1,000,000 SAFER Grant Match - Adjusted for FY 22 Mid-year and FY 23 Proposed Merit 2,109,000 City Manager Fund 1,000,000 Balance $ 1,614,205 $ - $ 2,670,271 budget@charlottesville.gov Office of Budget and www.charlottesville.gov/budget Performance Management 25 Proposed FY 2023 Operating & Capital Improvement Budget Wrap-up and Staff Follow-up budget@charlottesville.gov Office of Budget and www.charlottesville.gov/budget Performance Management 26 Proposed FY 2023 Operating & Capital Improvement Budget Budget Calendar March 31: Worksession, 6:00pm, Capital Improvements Program – Public invited. Opportunity for Council discussion with staff. Public comment at end. April 4: Public Hearings, 6:30pm – Smaller presentation with opportunity for Public feedback and Council discussion April 7: Worksession, 6pm - Remaining budget issues and wrap up – Public invited. Opportunity for Council discussion with staff. Public comment at end. April 12: Budget Approval by City Council, 5:30pm budget@charlottesville.gov Office of Budget and www.charlottesville.gov/budget Performance Management 27 Proposed FY 2023 Operating & Capital Improvement Budget Appendix budget@charlottesville.gov Office of Budget and www.charlottesville.gov/budget Performance Management 28 Proposed FY 2023 Operating & Capital Improvement Budget Projected Debt 5 Year CIP Plan – INCLUDING $50 School Reconfiguration Project $132.4M Total 5 Year Plan - $96.9M Bonds Assumptions: • $15M New Bonds Annually based on historical average + $50M for School Reconfiguration • Annual borrowing rates: 2.5% FY22, 3% FY23, 3.5% FY24, 4% FY25 and beyond • General Fund budget growth rate of 1.5% 2% meals tax growth in years 2024-2027 • Debt Service Fund balance used to help mitigate impact on amount of General Fund Transfer • Estimated Draw Schedule - $2.5M FY23, $13M FY 24, $21.5M FY25, $13M FY26 • $927,577 = Equivalent of $0.01 Real Estate Tax increase • Bonds will be sold on a cash needs basis and NOT all at once budget@charlottesville.gov Office of Budget and www.charlottesville.gov/budget Performance Management 29 Proposed FY 2023 Operating & Capital Improvement Budget Projected Debt 5 Year CIP Plan – INCLUDING School Reconfiguration Project - $50M $132.4M Total 5 Year Plan - $96.9M Bonds "Planning" "Consequences" Ratio of Debt General Fund Service to Total General Debt Service Fiscal Bond Issue Annual Debt Expenditure General Fund Fund Fund (1) Year Amount Service (2) Budget (3) Expenditures Transfer(4) $ Increase Balance(5) 2016 11,125,466 9,128,798 156,391,435 5.84% 9,279,578 - 11,962,480 2017 11,140,000 10,103,067 162,018,737 6.24% 9,817,330 537,752 11,880,013 2018 4,610,000 10,615,335 171,657,127 6.18% 10,371,750 554,420 11,905,368 $0.02 2019 9,520,000 10,375,167 179,725,535 5.77% 11,003,348 631,598 12,830,074 2020 - 10,743,891 188,863,920 5.69% 11,049,584 46,236 13,410,785 Annual Tax 2021 2022 22,655,000 15,000,000 10,684,789 11,465,809 191,195,873 192,212,843 5.59% 5.97% 10,354,393 10,700,784 (695,191) 346,391 13,225,476 12,460,451 Increase 2023 17,500,000 11,415,230 206,964,265 5.52% 12,980,912 2,280,128 14,026,133 Equivalent 2024 28,000,000 13,335,739 217,489,345 6.13% 14,887,365 1,906,453 15,577,760 2025 36,500,000 15,013,379 220,751,685 6.80% 16,794,845 1,907,479 17,359,225 for 3 years 2026 28,000,000 17,124,956 224,062,960 7.64% 16,848,217 53,372 17,082,486 2027 15,000,000 19,029,277 227,423,905 8.37% 16,902,656 54,439 14,955,866 2028 15,000,000 19,246,935 230,835,263 8.34% 16,958,185 55,528 12,667,116 2029 15,000,000 19,589,552 234,297,792 8.36% 17,014,823 56,639 10,092,387 2030 15,000,000 19,737,966 237,812,259 8.30% 17,072,595 57,772 7,427,015 2031 15,000,000 20,149,782 241,379,443 8.35% 17,131,522 58,927 4,408,755 2032 15,000,000 20,559,626 245,000,135 8.39% 17,191,627 60,106 1,040,756 *Estimates and subject to change budget@charlottesville.gov Office of Budget and www.charlottesville.gov/budget Performance Management 30 Proposed FY 2023 Operating & Capital Improvement Budget Projected Debt 5 Year CIP Plan – INCLUDING School Reconfiguration Project - $50M $132.4M Total 5 Year Plan - $96.9M Bonds "Planning" "Consequences" Ratio of Debt General Fund Service to Total General Debt Service $0.0525 Tax Increase Fiscal Bond Issue Annual Debt Expenditure General Fund Fund Fund (1) Year Amount Service (2) Budget (3) Expenditures Transfer(4) $ Increase Balance(5) 2016 2017 11,125,466 11,140,000 9,128,798 10,103,067 156,391,435 162,018,737 5.84% 6.24% 9,279,578 9,817,330 - 537,752 11,962,480 11,880,013 Equivalent 2018 4,610,000 10,615,335 171,657,127 6.18% 10,371,750 554,420 11,905,368 2019 9,520,000 10,375,167 179,725,535 5.77% 11,003,348 631,598 12,830,074 2020 - 10,743,891 188,863,920 5.69% 11,049,584 46,236 13,410,785 2021 22,655,000 10,684,789 191,195,873 5.59% 10,354,393 (695,191) 13,225,476 2022 15,000,000 11,465,809 192,212,843 5.97% 10,700,784 346,391 12,460,451 2023 17,500,000 11,415,230 211,834,044 5.39% 15,995,537 5,294,753 17,040,759 2024 28,000,000 13,335,739 222,432,171 6.00% 16,046,837 51,299 19,751,856 2025 36,500,000 15,013,379 225,768,653 6.65% 16,099,162 52,325 20,837,639 2026 28,000,000 17,124,956 229,155,183 7.47% 16,152,534 53,372 19,865,217 2027 15,000,000 19,029,277 232,592,511 8.18% 16,206,974 54,439 17,042,914 2028 15,000,000 19,246,935 236,081,398 8.15% 16,262,502 55,528 14,058,481 2029 15,000,000 19,589,552 239,622,619 8.18% 16,319,141 56,639 10,788,070 Debt Service 2030 15,000,000 19,737,966 243,216,959 8.12% 16,376,912 57,772 7,427,015 2031 15,000,000 20,149,782 246,865,213 8.16% 16,435,839 58,927 3,713,072 Fund Balance 2032 15,000,000 20,559,626 250,568,191 8.21% 16,495,945 60,106 (350,609) is negative *Estimates and subject to change budget@charlottesville.gov Office of Budget and www.charlottesville.gov/budget Performance Management 31 Proposed FY 2023 Operating & Capital Improvement Budget Projected Debt 5 Year CIP Plan – INCLUDING $54 School Reconfiguration Project $136.4M Total 5 Year Plan - $100.9M Bonds Assumptions: • $15M New Bonds Annually based on historical average + $54M for School Reconfiguration • Annual borrowing rates: 2.5% FY22, 3% FY23, 3.5% FY24, 4% FY25 and beyond • General Fund budget growth rate of 1.5% 2% meals tax growth in years 2024-2027 • Debt Service Fund balance used to help mitigate impact on amount of General Fund Transfer • Estimated Draw Schedule - $2.5M FY23, $14.125M FY 24, $23.25M FY25, $14.1253M FY26 • $927,577 = Equivalent of $0.01 Real Estate Tax increase • Bonds will be sold on a cash needs basis and NOT all at once budget@charlottesville.gov Office of Budget and www.charlottesville.gov/budget Performance Management 32 Proposed FY 2023 Operating & Capital Improvement Budget Projected Debt 5 Year CIP Plan – INCLUDING School Reconfiguration Project - $54M $136.4M Total 5 Year Plan - $100.9M Bonds "Planning" "Consequences" Ratio of Debt General Fund Service to Total General Debt Service Fiscal Bond Issue Annual Debt Expenditure General Fund Fund Fund (1) Year Amount Service (2) Budget (3) Expenditures Transfer(4) $ Increase Balance(5) 2016 11,125,466 9,128,798 156,391,435 5.84% 9,279,578 - 11,962,480 2017 11,140,000 10,103,067 162,018,737 6.24% 9,817,330 537,752 11,880,013 2018 4,610,000 10,615,335 171,657,127 6.18% 10,371,750 554,420 11,905,368 $0.02+ 2019 2020 9,520,000 - 10,375,167 10,743,891 179,725,535 188,863,920 5.77% 5.69% 11,003,348 11,049,584 631,598 46,236 12,830,074 13,410,785 Annual Tax 2021 22,655,000 10,684,789 191,195,873 5.59% 10,354,393 (695,191) 13,225,476 Increase 2022 15,000,000 11,465,809 192,212,843 5.97% 10,700,784 346,391 12,460,451 2023 17,500,000 11,415,230 206,964,265 5.52% 13,072,870 2,372,086 14,118,091 Equivalent 2024 2025 29,125,000 38,250,000 13,335,739 15,109,004 217,489,345 220,751,685 6.13% 6.84% 15,071,281 17,070,719 1,998,411 1,999,437 15,853,634 17,815,348 for 3 years 2026 29,125,000 17,376,113 224,062,960 7.76% 17,124,091 53,372 17,563,327 2027 15,000,000 19,376,214 227,423,905 8.52% 17,178,530 54,439 15,365,643 2028 15,000,000 19,586,153 230,835,263 8.48% 17,234,059 55,528 13,013,548 2029 15,000,000 19,921,052 234,297,792 8.50% 17,290,697 56,639 10,383,193 2030 15,000,000 20,061,748 237,812,259 8.44% 17,348,469 57,772 7,669,915 2031 15,000,000 20,465,845 241,379,443 8.48% 17,407,396 58,927 4,611,466 2032 15,000,000 20,867,970 245,000,135 8.52% 17,467,501 60,106 1,210,997 *Estimates and subject to change budget@charlottesville.gov Office of Budget and www.charlottesville.gov/budget Performance Management 33 Proposed FY 2023 Operating & Capital Improvement Budget Projected Debt 5 Year CIP Plan – INCLUDING School Reconfiguration Project - $54M $136.4M Total 5 Year Plan - $100.9M Bonds "Planning" "Consequences" Ratio of Debt Fiscal Bond Issue General Fund Service to Total Annual Debt Expenditure General Fund General Fund Debt Service Fund $0.055 Year Amount (1) Service (2) Budget (3) Expenditures Transfer(4) $ Increase Balance(5) Tax Increase 2016 11,125,466 9,128,798 156,391,435 5.84% 9,279,578 - 11,962,480 2017 11,140,000 10,103,067 162,018,737 6.24% 9,817,330 537,752 11,880,013 Equivalent 2018 4,610,000 10,615,335 171,657,127 6.18% 10,371,750 554,420 11,905,368 2019 9,520,000 10,375,167 179,725,535 5.77% 11,003,348 631,598 12,830,074 2020 - 10,743,891 188,863,920 5.69% 11,049,584 46,236 13,410,785 2021 22,655,000 10,684,789 191,195,873 5.59% 10,354,393 (695,191) 13,225,476 2022 15,000,000 11,465,809 192,212,843 5.97% 10,700,784 346,391 12,460,451 2023 17,500,000 11,415,230 206,964,265 5.52% 16,227,432 5,526,648 17,272,653 2024 29,125,000 13,335,739 217,489,345 6.13% 16,278,731 51,299 20,215,646 2025 38,250,000 15,109,004 220,751,685 6.84% 16,331,057 52,325 21,437,698 2026 29,125,000 17,376,113 224,062,960 7.76% 16,384,429 53,372 20,446,015 2027 15,000,000 19,376,214 227,423,905 8.52% 16,438,868 54,439 17,508,669 2028 15,000,000 19,586,153 230,835,263 8.48% 16,494,397 55,528 14,416,912 2029 15,000,000 19,921,052 234,297,792 8.50% 16,551,035 56,639 11,046,895 2030 15,000,000 20,061,748 237,812,259 8.44% 16,608,807 57,772 7,593,955 Debt Service 2031 15,000,000 20,465,845 241,379,443 8.48% 16,667,734 58,927 3,795,844 Fund Balance 2032 15,000,000 20,867,970 245,000,135 8.52% 16,727,839 60,106 (344,287) is negative *Estimates and subject to change budget@charlottesville.gov Office of Budget and www.charlottesville.gov/budget Performance Management 34