Budget Highlights FY2015

Budget Highlights

Tax rate Fiscal Year 2015

Introduction The Fiscal Year 2015 Annual Budget, which was adopted on September 17, 2014, is a numerical reflection of the Fiscal Year 2015 Business Plan. By allocating our resources in alignment with the City Commission’s five strategic priorities and departmental performance indicators, we believe this budget will successfully meet the challenges we have before us and set the stage for continued success in the future.

Budget in Brief The adopted operating net budget for Fiscal Year 2015 for all funds totals $161,821,110. This represents an increase of $5,285,073 or 3.3% more than the Fiscal Year 2014 net budget. The Fiscal Year 2015 budget is balanced, prudent and responsive to community needs as identified in the Fiscal Years 2014 - 2015 Strategic Plan.

Some features of the Fiscal Year 2015 budget that deserve special attention are: • No change to the adopted operating millage rate of $4.5697. By retaining the current millage rate, the City will collect approximately $1.6 million additional property tax revenue than Fiscal Year 2014 budget. The average single-family homesteaded homeowner will pay an additional $15.40 in property taxes due to an increase in home values.

• The voter-approved debt service millage rate will increase from $0.2033 to $0.2038, an increase of $0.0005 or 0.2%.

• The combined general operating and debt service millage rate is $4.7735 per $1,000 of assessed value, an increase of $0.0005 or 0.01%.

• The Fire Assessment fee for SingleFamily homes will remain at $141.36.

• Water and Sewer rates will increase by 3.5%. An increase of $2 per month for the majority of residential customers.

• The Solid Waste Special Assessment will be $225.84 for Single-Family homes.

An increase of $4.92 or 2.2% from the previous year.

General Operating Millage

$4.5697

Debt Service Millage

$0.2038

Combined City Millage Rate

$4.7735

Operating Millage Rate-5.2% Increase No change in the Coral Springs Operating millage rate $6.0000 $5.0000 $4.0000

$4.3559 $4.3939

$4.5697 $4.5697 $4.5697

$3.8866

$3.8715 $3.8715 $3.8715 $3.3651 $3.3651

$3.0000 $2.0000 $1.0000 $0.0000 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015

The operating millage rate will remain the same as in Fiscal Year 2014. Keeping the millage rate exactly the same, $4.5697, will be considered a 5.2% tax increase.

Operating Millage Rate Comparison – 5.2% Increase - $4.5697 Operating millage rate comparison Fiscal Year 2015 FY 2015 Proposed $8.0000 $7.0000 $6.0000 $5.0000 $4.0000 $3.0000 $2.0000 $1.0000 $0.0000

$7.4479

$6.7654 $5.9142 $6.0543 $5.6368 $6.2317

$5.2476 $5.0829 $4.5697 $4.1193

When comparing Broward County cities with populations greater than 70,000, Coral Springs’ operating millage rate is one of the lowest of the 10 municipalities.

Voter-Approved Debtmillage Service Millage Voter-approved debt service rate Rate $1.0000 $0.8000 $0.6000 $0.4000

$0.3924 $0.2510

$0.2000

$0.2915 $0.2134

$0.1774

$0.1763

$0.1763

$0.1763

$0.2906 $0.2033

$0.2038

$0.0000 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015

The debt millage rate will increase from $0.2033 to $0.2038 or 0.2% in Fiscal Year 2015.

City of Coral Springs, Florida

25

Net Full-Time Position Changes per Fiscal Year 50

44 40

17

14

12

10

8

Creative Services Coordinator Project Manager Database Analyst

13

14

4

-13

-11

-8

Dept—Division

FY 2012

FY 2011

FY 2010

FY 2009

FY 2008

FY 2007

FY 2006

FY 2005

FY 2004

FY 2003

FY 2002

FY 2001

FY 2000

FY 1999

FY 1998

-20

Fire Fund (Training Officer and Fire Inspector ), and two positions are split between the Fire Fund and the General Fund —Public Education Officer (62% Fire/38% General Fund; Data Analyst (50% Fire/50% General Fund). These staff are necessary to continue providing high quality services to our customers. They are linked to the implementation of new Business Plan initiatives that will augment public safety and wellness, while enhancing the City’s ability to attract economic development.

Details of these new initiatives are described in the Business Plan section of this document. # of positions

CMO—Economic Development CMO—Communications & Marketing Information Technology

1 1 1 1 1

Principal Office Assistant

Dev Services—Code Compliance

1

Law Enforcement Officer

Police—Patrol

3

Public Education Officer*

Fire—Inspection/EMS

1

Data Analyst*

Fire—Administration/EMS

1

Chief Training Officer

Fire—Training

1

Fire Inspector II

Fire—Inspection

1

Principal Office Assistant

EMS

1

Total

14

• In Fiscal Year 2014, 13 additional full-time positions were authorized; ten were funded in the General Fund and three in the Water & Sewer Fund. In Fiscal Year 2013, there was a net change of thirteen additional full-time positions—nine added to the General Fund and four to the Fire Fund. From Fiscal Years 2008 through 2011, 34 full-time positions were deleted primarily due to the elimination of vacant positions or through attrition, in response to the economic recession.

In Fiscal Year 2007, 11 public safety positions were added. In Fiscal Year 2003, public safety employees were added as a result of September 11th national tragedy. Paid firefighters were added in Fiscal Year 2001, and EMS startup began in Fiscal Year 1996.

Capital Improvements • The City will invest $41,836,054 in Fiscal Year 2015 to address its capital needs. For more on capital, refer to the Capital Improvement Program section included in this document.

*funding for these positions is split between Fire Fund and General Fund

26

7

13

-2

Full-time additions for Fiscal Year 2015

Principal Office Assistant

5

-10

• For Fiscal Year 2015, the number of full-time positions is 794 (excludes Fire/EMS services contract staff). This represents an addition of 14 full-time employees, offset by the conversion of three part-time positions to fulltime status. The table below lists each authorized new position for the upcoming budget year. Funding for this new staff is budgeted as follows: 10 are fully funded in the General Fund, two positions are funded 100% in the

Economic Development Manager

15

0

Changes in Staffing Levels

Position title

16

13

FY 2015

20

FY 2014

29

30

FY 2013

40

FY 1996

• With a General Obligation bond indebtedness of 0.21% of total taxable assessed value, the City is well below its debt policy limit of 5%.

Net full-time position changes per fiscal year

FY 1997

• General Fund debt service for franchise and capital revenue bonds, as a percentage of total budget, will equal 4.5% in Fiscal Year 2015 as compared to 3.7% in the current year, well within the General Fund debt service policy limitation of 12.5% of total General Fund expenditures.

Fiscal Year 2015 Annual Budget

Financial Condition

Intergovernmental Revenue

Despite four years of downward pressure on revenues due to residential build-out, tax relief legislation, and the economic recession, Coral Springs continues to lead the nation in fiscal management and stability.

Most economists are expecting the economy to grow at a modest rate during the coming year. However, rather than growth returning to normal levels quickly, the economy will move slowly but steadily upward. We have, therefore, adopted a moderate growth philosophy for Fiscal Year 2014 revenue estimates. To hedge against being too optimistic, we have adopted a contingency that is higher than we otherwise would simply to counterbalance this risk.

Bond Ratings The City is proud to have earned the highest bond rating available from Standard and Poor’s (AAA) and Fitch Ratings (AAA). The City also received the Aa1 rating from Moody’s Investors Service. The City’s goal is to maintain the AAA from S&P and Fitch while making the changes needed to earn the Aaa bond rating from Moody’s. Increasing fund balance from 26% to 30% is an important change the City can make to achieve this goal. Achieving AAA bond rating is important for our residents because it indicates to investors that the City is a low investment risk which translates into lower interest rates and corresponding lower interest payments on general obligation bonds.

For many years, fund balances improved as a result of growthrelated revenues, improved productivity, and prudent financial management policies. Those fund balances have been leveraged to avoid future debt service by equity financing capital purchases. For further information on our fund balances, refer to the Appendix section of this document.

Annual net operating budget and capital

Net Operating Budget Capital Improvements (CIP) Total Financial Program

FY 2014 FY 2015 $ % Budget Budget Change Change $156,536,037 $161,821,110 $5,285,073 3.4% 13,960,688 41,836,054 27,875,366 199.7% $170,496,725 $203,657,164 $33,160,439 19.4%

FY 2014 FY 2015 Net Operating Budget Budget Budget General Fund $67,814,579 $69,632,817 Special Revenue Funds Fire Fund 11,873,782 12,198,755 C.S. Charter School Fund 10,488,350 10,008,913 Public Art Fund 96,500 222,000 Enterprise Funds Water and Sewer Fund 17,811,641 18,362,701 Solid Waste Fund 3,106,900 4,157,009 Internal Service Funds Health and General Insurance Funds 16,118,093 16,799,742 Equipment Services Fund 9,152,277 10,755,940 Pension Fund 13,638,747 12,898,198 Debt Service Fund 6,435,168 6,785,035 Total Net Operating Budget $156,536,037 $161,821,110

City of Coral Springs, Florida

$ % Change Change $1,818,238 2.7% 324,973 2.7% (479,437) -4.6% 125,500 130.1% 551,060 1,050,109

3.1% 33.8%

681,649 1,603,663 (740,549) 349,867 $5,285,073

4.2% 17.5% -5.4% 5.4% 3.4%

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Major Policy Considerations Although we expect the economic recovery to hold center stage, the City’s strategy to invest in its community, as well as a number of other issues will also be part of the conversation.

Investing in the Community During the depths of the recession, the City adopted a threepronged financial strategy. While this was an appropriate strategy for the time, a new financial strategy is necessary to place the City in the most advantageous position to embrace the economic recovery.

Although the recession has officially ended, the return to prerecession economic growth rates is not on the horizon. Since the fuel that powered the City’s economic engine (population growth and new construction) will not return to previous levels quickly, if at all, we must expect and plan for a new normal.

For example, having reached build-out the City can no longer count on development of vacant parcels to spur economic growth.

The City Commission has set the stage for this vision by incorporating language in the 2014-2015 Strategic Plan directing the City to take a leadership role in creating its future by investing in our community. In partnership with the Economic Development Foundation, Community Redevelopment Agency, the Chamber of Commerce, and other stakeholders, the City will proactively prime the engine of economic growth by assisting our existing business community, devoting resources to encourage the redevelopment of the City’s commercial areas such as the Corporate Park, and investing in education. In addition, the City will work to attract businesses and increase property values by investing in the appearance and the safety of our community.

Economic Development Strategy The City has adopted a targeted-industries approach which will replace the old model of economic development that was essentially driven by land developers. We will proactively target the industries that are projected to have the highest growth in our area: health care, medical devices, medical information technology, global information technology, and distribution.

Our biggest challenge, however, is to fill existing vacant industrial and office space. Once absorption occurs we can set our sights on new development and expansion.

Upgrade Technology Infrastructure The City will continue to invest in tools that allow its employees to achieve high levels of productivity as well as provide customer service that is second to none. A state of the art technology infrastructure is a crucial element in allowing the City to meet its service delivery goals now and in the future.

This objective must be balanced against the need to protect citizen confidentiality, integrity, and availability of information and at the same time control costs. It is also important that all City departments participate in the efforts to utilize technology in an efficient and effective manner.

28

Fiscal Year 2015 Annual Budget

Combined Budget Summary Appropriated Funds Budget—Fiscal Year 2015 GENERAL FUND CASH BALANCE BROUGHT FORWARD: ESTIMATED REVENUES Taxes: Millage Per $1,000 Ad Valorem Taxes $4.5697 Ad Valorem Taxes $0.2038 (Voted Debt) Solid Waste Assessment Fire Fund Special Assessment Sales and Use Taxes Franchise Fees Utility Service Taxes Licenses and Permits Intergovernmental Revenue Charges for Services Fines and Forfeitures Miscellaneous Revenues Other Financing Sources

$400,000

DEBT SERVICE FUND $0

CAPITAL PROJECTS FUND $1,165,327

PUBLIC ART FUND $195,500

SOLID WASTE FUND $185,004

$1,928,000

CHARTER SCHOOL FUND

FIRE FUND $0

$252,500

35,299,267 1,574,394 2,124,467

3,972,005 10,566,521

7,673,453 10,134,499 11,070,986 3,735,836 11,810,050 14,400,669 2,219,854 4,131,757 225,355

3,150 5,207,491

311,798 20,058,501

26,500

TOTAL REVENUES AND OTHER FUNDING SOURCES

$102,826,193

$6,785,035

$20,370,299

$26,500

$3,972,005

TOTAL ESTIMATED REVENUES AND BALANCES

$103,226,193

$6,785,035

$21,535,626

$222,000

$4,157,009

EXPENDITURES / EXPENSES General Governmental Services Education Public Safety Physical Environment Economic Environment Culture and Recreation Debt Service Capital Improvement Program (excluding Operating CIP) Other Financing Sources (Uses) TOTAL EXPENDITURES/EXPENSES Reserves TOTAL APPROPRIATED EXPENDITURES AND RESERVES

WATER & SEWER FUND

TOTAL BUDGET $4,126,331

$35,299,267 $1,574,394 $6,096,472 $10,566,521 $7,673,453 $10,134,499 $11,070,986 $3,735,836 $28,522,036 $37,351,870 $2,274,874 $4,544,955 $25,523,735

5,535,573 2,273,716 55,020 55,000 5,888

11,176,413

$20,720,735

$18,491,718

$11,176,413

$184,368,898

$22,648,735

$18,491,718

$11,428,913

$188,495,229

20,677,485 43,250

4,675,414 $103,226,193 $0

1,400 $6,785,035 $0

$21,535,626 $0

$222,000 $0

36,000 $4,157,009 $0

1,804,017 $22,648,735 $0

2,395,708 $18,491,718 $0

$11,428,913 $0

$14,364,474 $12,007,194 $71,972,558 $30,162,357 $704,514 $15,071,766 $13,764,201 $21,535,626 $8,912,539 $188,495,229 $0

$103,226,193

$6,785,035

$21,535,626

$222,000

$4,157,009

$22,648,735

$18,491,718

$11,428,913

$188,495,229

14,364,474 578,281 56,349,408 7,269,705 454,514 14,849,766 4,684,631

11,428,913 15,623,150 4,121,009

18,771,643 250,000

222,000 6,783,635

1,823,075

472,860

21,535,626

Note: Revenues (sources) and Expenses (uses) for Equipment Services, Health, and General Insurance funds are incorporated within all other appropriated funds included in this summary and thus, not listed separately.

Note: In accordance with standard budgeting practice, the main difference between the “Summary of Net Budgeted Revenues/Expenditures” on pages 32 and 33 and the “Fiscal Year 2015 Combined Budget Summary” on this page is that the latter does not include internal service funds to avoid double-counting interfund transfers (movement of money from one fund to another).

City of Coral Springs, Florida

29

Fund Structure Overview 325

FY 2015 Total Operating Budget and Capital $203,657,164

FY 2015 Net Operating Budget $161,821,110

General Fund $69,632,817

Enterprise Funds $22,519,710

Water and Sewer $18,362,701 Solid Waste Fund $4,157,009

Special Revenue Funds $22,429,668

Internal Services Funds $27,555,682

Fire $12,198,755 Charter School $10,008,913 Public Art $222,000

Insurance Funds $16,799,742 Equipment Services $10,755,940

Trust and Agency Funds $12,898,198 Pension $12,898,198

Capital Projects Funds $6,785,035 Debt Service $6,785,035

Major Funds Fund Name

Fund Type

Fund Description Accounts for police, code compliance, parks and recreation, public works, building, emergency medical services, and administration services Covers the fire department and subsequent divisions, including administration, suppression, inspection, training, and communications Provides water and wastewater services to approximately 51% of Coral Springs residents Includes the non-franchise portion of the City’s residential solid waste special assessment to cover cost of hauler and disposal fees Contribute to the City’s insured general liability, property, workers’ compensation, life, and employee medical benefits Includes the revenues and expenses incurred in the operation of the Coral Springs Charter School Accounts for the costs of maintaining the City’s fleet Includes the Public Art fee receipts collected during the permitting process for new construction and renovations of existing structures

General Fund*

City Operating Fund

Fire Fund*

Special Revenue Fund

Water and Sewer Fund*

Enterprise Fund

Solid Waste Fund*

Enterprise Fund

Health and General Insurance Funds*

Internal Service Funds

Coral Springs Charter School Fund*

Special Revenue Fund

Equipment Services Fund*

Internal Service Fund

Public Art Fund*

Special Revenue Fund

Pension Fund

Trust and Agency Fund

Accounts for the accumulation of resources to be used for retirement benefit payments to the City’s employees

Debt Service Fund*

Debt Service Fund

Covers the revenues and payment of voter approved long-term general obligation debt and revenue bond debt

*Indicates appropriated funds in accordance with the Budget Ordinance.

30

Fiscal Year 2015 Annual Budget

Fund Structure Overview (continued)

FY 2015 Capital Budget $41,836,054

General Fund $21,735,626

Enterprise Funds $9,493,000

Water and Sewer $9,457,000 Solid Waste Fund $36,000

Special Revenue Funds $5,598,528

Internal Services Funds $5,008,900

Fire $5,478,528 Charter School $30,000 Public Art $90,000

Equipment Services $5,008,900

A pedestrian footbridge was replaced on 87th Avenue, South of Sample Road. This bridge provides an alternative access to and from Forest Hills Elementary School. The bridge has also been used by the school as an emergency exit egress.

City of Coral Springs, Florida

31

Summary of net budgeted revenues窶認iscal Year 2015 FY 2014 Amended Net Budget General Fund

Percent of Total

FY 2015 Adopted Net Budget

$94,689,974

60.5%

$97,769,413

Fire Fund

17,119,047

10.9%

Water and Sewer Fund

21,624,783

Percent of Total

Dollar Change

Percent Change

60.4% $3,079,439

3.3%

17,310,587

10.7%

191,540

1.1%

13.8%

22,648,735

14.0%

1,023,952

4.7%

1,338,000

0.9%

1,535,000

0.8%

197,000

14.7%

11,908,350

7.6%

11,428,913

7.1%

(479,437)

-4.0%

96,500

0.1%

222,000

0.1%

125,500

130.1%

Equipment Services Fund

3,725,585

2.4%

5,171,909

3.2%

1,446,324

38.8%

Solid Waste Fund

3,827,185

2.4%

4,157,009

2.6%

329,824

8.6%

Debt Service Fund

2,306,613

1.5%

1,577,544

1.0%

(729,069)

-31.6%

Health and General Insurance Funds C. S. Charter School Fund Public Art Fund

Total

$156,636,037

100.0% $161,821,110

100.0% $5,185,073

Note: The total net budgeted revenues and expenditures/expenses are equal. However, the total by fund for revenue and expenditure/expenses are different due to inter-fund transfers.

Fiscal Year 2015 Net Budget - All Funds - Revenues $161,821,110 Fire Fund 10.7%

Debt Service Fund 1.0%

Other 1.0% Charter School Fund 7.1%

Water and Sewer Fund 14.0% General Fund 60.4% Equipment Services Fund 3.2% Solid Waste Fund 2.6%

32

Fiscal Year 2015 Annual Budget

3.3%

Summary of net budgeted expenditures窶認iscal Year 2015 Summary of Net Budgeted Expenditures窶認Y 2015 FY 2014 Amended Net Budget General Fund

Percent of Total

FY 2015 Adopted Net Budget

Percent of Total

Dollar Change

$67,914,579

43.4%

$69,632,817

Fire Fund

11,873,782

7.6%

12,198,755

7.5%

324,973

2.7%

Water and Sewer Fund

17,811,641

11.4%

18,362,701

11.3%

551,060

3.1%

Health and General Insurance Funds

16,118,093

10.3%

16,799,742

10.4%

681,649

4.2%

C.S. Charter School Fund

10,488,350

6.7%

10,008,913

6.2%

(479,437)

-4.6%

96,500

0.1%

222,000

0.1%

125,500

130.1%

9,152,277

5.8%

10,755,940

6.6%

1,603,663

17.5%

13,638,747

8.7%

12,898,198

8.0%

(740,549)

-5.4%

Solid Waste Fund

3,106,900

2.0%

4,157,009

2.6%

1,050,109

33.8%

Debt Service Fund

6,435,168

4.1%

6,785,035

4.2%

349,867

5.4%

100.0% $5,185,073

3.3%

Public Art Fund Equipment Services Fund Pension Fund

Total

$156,636,037

100.0%

$161,821,110

43.0% $1,718,238

Percent Change 2.5%

Note: The total net budgeted revenues and expenditures/expenses are equal. However, the total by fund for revenue and expenditure/expenses are different because of interfund transfers.

Fiscal Year 2015 Net Budget - All Funds - Expenditures $161,821,110 Solid Waste Fund Equipment Services Fund 2.6% 6.6%

Water and Sewer Fund 11.3%

General Fund 43.0% Fire Fund 7.5%

Charter School Fund 6.2% Debt Service Fund & Public Art Fund 4.3% Pension Fund 8.0%

Insurance and Health Fund 10.4%

City of Coral Springs, Florida

33

Where the money comes from by source (all funds) 13.5%

19.6% Ad Valorem Taxes Sales and Use Taxes Utility Service Taxes Intergovernmental Fines and Forfeitures Misc. Revenues

2.4% 2.2% 1.2%

Special Assessments Franchise Fees License and Permits Charges for Services Capital Other Financing Sources

8.8% 19.8% 4.1%

Where the money goes by type of program

5.4% 5.9% 15.1% 2.0%

Where the money goes by type of program (all funds) 7.6%

4.7% 11.4%

6.4% General Government Services Education Public Safety Physical Environment Economic Environment Culture and Recreation Debt Service Capital Improvements Other Financing Uses

7.3%

8.0%

Where the money goes by category (General Fund only) 0.4%

38.2% 16.0%

Where the money goes by category (General Fund only) 1.4% 4.2% 0.3%

18.4%

4.5% 46.3%

Personal Services Benefits Other Operating Capital Improvements Non Departmental Interfund Transfers Debt Service

24.9%

34

Fiscal Year 2015 Annual Budget