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.
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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.
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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