Recommended FY 2022 Budget Presented to City Council No proposed tax rate changes, one small user fee increase, schools request fully funded
| At yesterday’s City Council Work Session, City Manager Cindy Rohlf presented her recommended FY 2022 Operating Budget. The proposed budget, which is for the fiscal year that runs from July 1, 2021 through June 30, 2022, totals $959,829,173 and is 3.1% higher than the current year. In her transmittal memo, City Manager Rohlf noted the recommended budget was developed with a “multipronged approach: to continue to address COVID-19 impacts, prepare for a post-COVID community, and to continue to move the City’s Strategic Priorities of People, Places, and Government forward.” As with the FY 2021 budget, the fundamental focus of the FY 2022 recommended budget is on People, including the four goals and objectives: Health, Safety and Well-being; Education and Learning; Opportunity and Economic Prosperity; and Fun, Entertainment, and Culture. Funding is also included to support the Places and Government priorities. In support of the People priority, the recommended budget includes: funding for a public-private partnership on early childhood initiative;full funding of the school system’s operating budget request ($113,389,307);converting and expanding staffing at the Four Oaks Day Service Center from contracted positions to city positions to enhance program delivery to this vulnerable population;one City Attorney position to be dedicated to Human Services case work;three Commonwealth Attorney positions (one attorney and two paralegals), to meet the State mandated staffing ratios for evidence collection associated with body worn cameras;two Forensic Technician positions in the Police Department;investing in a juvenile delinquency diversion and peer-justice program through a Youth Court setting;expanding Wi-Fi hotspots for library system circulation to help bridge the digital divide across the City;investment in employee compensation (3% general wage increase);addition of one Business Analyst in Human Resources to monitor, advise, and review compensation status of job classes;full year funding for the Brooks Crossing Innovation and Opportunity Center for the workforce development center for in demand jobs;full year funding for co-working space at The Offices @Two Five & J; andartistic/decorative charging station(s) (e.g., wind art) to complement private investment. The operating budget is comprised of the General Fund, Schools, Waterworks, and other special revenue and trust funds. The recommended budget for the General Fund, which includes the majority of the services we provide, is $525,943,000, which is almost $11 million higher than the current year. Real estate tax revenue is the largest single revenue source for the City and the principal revenue in the General Fund, and for the seventh consecutive year, real estate assessments in Newport News have grown. With no proposed real estate tax rate change for FY 2022, the increase in assessments will lead to a higher overall real estate tax levy resulting in approximately $10.7 million increase in revenue. One user fee rate increase is recommended for FY 2022. To address the Stormwater Management Fund capital projects requirements and accelerate backlogged operation and maintenance projects, the stormwater fee is recommended to increase monthly by 40 cents, from $11.85 per Equivalent Residential Unit (ERU) to $12.25. This equates to a $4.80 annual rate increase for the average homeowner. The largest single funding component of the total annual operating budget is for education. The total recommended city contribution to the School Division is $121,025,933, which includes $113,389,307 to support daily operations and $7,636,626 for debt service on school capital projects. This amount does not include a separate $2 million for school bus replacement. “I believe the FY 2022 Recommended Operating Budget is responsive on several levels: to [City Council’s] priorities, our community needs, enhances the quality of life for all our citizens, and is poised to be adaptive as the pandemic needs shift,” Rohlf said. City Council will hold two public hearings on the Recommended Budget – Tuesday, April 13 at 7:00 p.m. in City Council Chambers at City Hall and Thursday, April 15 at 7:00 p.m. at the Denbigh Community Center, 15198 Warwick Boulevard. Comments on the proposed budget can also be submitted to Council by: Emailing council@nnva.gov Sending in comments via the website Leaving a voicemail at 757-926-8734Mailing comments to: City Council, 2400 Washington Avenue, Newport News, VA 23607 The entire recommended budget, including the City Manager’s cover letter and presentation, can be viewed on the Budget Department’s website. |