'The real issue is revenues'

By SABINE HIRSCHAUER | 247-4536

February 18, 2008

NEWPORT NEWS - Randy Hildebrandt took over as city manager two years ago this month and soon encountered a myriad of challenges.

Chief among them: Disgruntled homeowners, who'd endured three straight years of double-digit property tax reassessments, began to ratchet up their criticism of the city for pumping millions of dollars into big-ticket projects such as City Center at Oyster Point and the King William Reservoir — while only reluctantly cutting the real estate tax rate.

This year, Hildebrandt continues to navigate the city through rough budgetary waters. Against the backdrop of a housing market slump and a sputtering economy, he announced a three-month hiring freeze last week and asked department heads to cut their budgets 5 percent to keep shortfalls in check.

Q: Did you imagine the city's financial situation would be so difficult in your first two years?

A: In the early 1990s, we also had a very difficult economic period with layoffs. After that, the 1990s have been pretty prosperous. When I came on board two years ago, I understood that the city had some fiscal challenges. We had a pension shortfall, we needed new computer systems and equipment. ... I knew that when I applied for the job. I knew what the challenges were.

Q: What do you tell people in the community such as the RETRO (Real Estate Tax Reduction Organization) group, which continues to push for a tax rate cut. Will there be a tax rate cut this year?

A: They are expecting tax rate cuts based on our surrounding neighbors, such as Isle of Wight and York counties. But we are an urban city with older housing, lower per-capita income and our residents require more services such as public safety, human services and schools. ... These are challenges counties such as Isle of Wight, York and James City don't have. The prospects (of a tax cut) are very unlikely, also given that the state government is slashing its budget. We see the effects of a slowing down of the economy.

Q: Is there a possibility that residents in Newport News will see tax increases in the next years to come?

A: It's hard to predict. The times of double-digit assessments have ended, and taxpayers will be happy about that. But the real issue is revenues. We have to look at different taxes and fees. In the longer term, tax rate adjustments have to be made to meet our funding requirements.

Q: During your 28-year tenure as an assistant city manager, you backed controversial projects, such as the King William reservoir and City Center. Do you still think both projects were wise city investments, now considering the city's financial woes?

A: Absolutely. The Peninsula is destined to grow, and people are moving here and want to live here. Businesses come here, and they need water. The reservoir is essential for the community to meet its requirements as it grows. But it's been a challenge. The Little Creek reservoir, for one, was built in 10 years. Today, state and environmental regulations are stricter. Now with the King William Reservoir, we are in our 20th year, and we are still five years away from constructing it — and 10 years from having water in it. City Center is a tremendous success for the city. City Center is more than the center of Newport News. In 10 to 20 years, we will become the regional business center on the Peninsula.

Q: Newport News has been in the news a lot in the past year, primarily because of its homicide rate. How does this affect the city's vision to attract more businesses and people? How does this affect you?

A: It's very disappointing. People who live here and move here expect — and should expect — to live in a safe environment. (Police) Chief (James) Fox made this a high priority. We are making it a priority to spend enough money and resources to keep people safe. In the second half of last year, the murder rate dropped. So far this year, we only had one homicide. That's a good trend. You'd like to have a zero homicide rate, but we think we made progress.

Q: How do you cope with getting chastised by irate citizens during City Council meetings for spending money on big projects?

A: I don't think they attack me personally. I represent city government. It's part of my job. You just have to believe that you do the right thing. We understand that we are in a fishbowl — we are in the newspaper, on TV. This is something we have to understand when we go into the public sector.

Q: Once you retire, what do you think your legacy will be?

A: I told council that I will give them at least five years as a city manager. When I am getting ready to retire, I want for the city to have a solid financial base.

Q: You are originally from Illinois and worked in the 1970s for Syracuse, N.Y., as the budget director. What brought you to Virginia and to Newport News, and what do you enjoy the most about Virginia?

A: It was really just the job. It was advertised at the time, and I was very interested in city management. I definitely appreciate the weather here in Virginia. In the six years I worked for Syracuse, we broke twice the record for snow, with getting more than 150 inches. So it was definitely an easy choice for me. I do have to say, though, during my first day at work in Newport News, we had 5 inches of snow. The 0 inches of snow mentioned in the Newport News Chamber of Commerce brochure at the time were not quite true.

Q: You have an undergraduate degree in economics? Why economics?