Budget Highlights FY2014

Tax rate Fiscal Year 2014

Budget Highlights

General Operating Millage

$4.5697

Introduction

Debt Service Millage

$0.2033

The Fiscal Year 2014 Annual Budget, which was adopted on September 18, 2013, is a numerical reflection of the Fiscal Year 2014 Business Plan. By allocating our resources through a balanced 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 our continued success in the future.

Combined City Millage Rate

$4.7730

Operating millage rate $8.0000 $7.0000 $6.0000 $5.0000 $4.0000

$3.8715

$3.8715 $3.8715

$3.8715

$4.3559

$4.3939

$4.5697

$4.5697

FY 2011

FY 2012

FY 2013

FY 2014

$3.8866 $3.3651 $3.3651

$3.0000 $2.0000 $1.0000

Budget in Brief

$0.0000

The adopted operating net budget for Fiscal Year 2014 for all funds totals $156,536,037. This represents an increase of $3,069,800 or 2% more than the Fiscal Year 2013 net budget. The Fiscal Year 2014 budget is balanced, prudent and responsive to community needs as identified in the Fiscal Years 2014 - 2015 Strategic Plan.

The operating millage rate will remain the same as in Fiscal Year 2013. Keeping the millage rate exactly the same, $4.5697, will be considered a 4% tax increase. The average single-family homeowner will pay an additional $19.63 in property taxes if current rate is maintained.

FY 2004

FY 2005

FY 2006

FY 2007

FY 2008

FY 2009

FY 2010

Operating millage rate comparison Fiscal Year 2014 $8.0000 $7.4479 $7.0000

$6.4654

$6.2317

Some features of the Fiscal Year 2014 budget that deserve special attention are:

Coral Springs

$6.0543

$6.0000

$5.6383

$5.6142

$5.3712

$5.1132

$5.0000

$4.5697 $4.5697

$4.0000

• No change to the proposed operating millage rate of $4.5697. By retaining the current millage rate, the City will collect approximately $1.2 million additional property tax revenue than last year.

$3.0000 $2.0000 $1.0000 $0.0000

• The voter-approved debt service millage rate will decrease from $0.2906 to $0.2033, a decrease of $0.0873 or 30%.

• The combined general operating and debt service millage rate is $4.7730 per $1,000 of assessed value, a decrease of $0.0873 or 1.8%.

• An increase of $3.26 per single family residence for Fire Special Assessment fees.

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 debt service millage rate $1.0000

$0.8000

$0.6000

• A Water and Sewer fee increase of approximately $0.96 per month (before tax) or $0.70 (including tax) for a typical single family residence (see breakdown on page 18).

• Solid Waste Special Assessment will decrease $6.24 for a single family residence.

$0.4000

$0.4131

$0.3924 $0.2915 $0.2510

$0.2134

$0.1774

$0.1763

$0.1763

$0.1763

FY 2007

FY 2008

FY 2009

FY 2010

FY 2011

$0.2000

$0.2906 $0.2033

$0.0000 FY 2004

FY 2005

FY 2006

FY 2012

FY 2013

FY 2014

The debt millage rate will decrease from $0.2906 to $0.2033 or 30% in Fiscal Year 2014. This debt millage rate will reflect the actual debt service approved by voter referendum. In prior years, fund balance was used to subsidize the annual debt service payment.

City of Coral Springs, Florida

29

Full-time positions added in Fiscal Year 2014

• General Fund debt service for franchise and capital revenue bonds, as a percentage of total budget, will equal 3.7% in Fiscal Year 2014 as compared to 3.6% in the current year, well within the General Fund debt service policy limitation of 12.5% of total General Fund expenditures.

General Fund: Additions:

• With a General Obligation bond indebtedness of 0.23% of total taxable assessed value, the City is well below its debt policy limit of 5%.

Personal Services

Senior Office Assistant-City Commission

1

Construction Project Manager-City Manager’s Office*

1

Senior Financial Analyst/Grant Coordinator-CMO/ Management & Budget

1

Principal Office Assistant-CMO/City Clerk

1

Senior Office Assistant-HR/City Hall in the Mall

1

• Total full-time positions in all funds for Fiscal Year 2014 is 780 (excludes the Fire/EMS services contract staff ).

Assistant Planner/Housing SpecialistDS/Community Development

1

• Added thirteen full-time positions, ten in the General Fund and three in the Water & Sewer Fund. General Fund added one Office Assistant in Public Works Streets; two Principal Office Assistants, one in City Clerk and one in Code Compliance; three Senior Office Assistants, one each in City Commission, Human Resources, and Public Works Administration; one Senior Financial Analyst/Grant Coordinator in Management & Budget Office; one Assistant Planner in Community Development; one Crime Scene Technician in the Police Department; and one Construction Project Manager in the City Manager’s Office. Six part-time positions were converted to full-time to offset the increase in the number of positions. The Water & Sewer Fund added three Utilities Service Workers in Public Works Utilities.

Principal Office Assistant-DS/Code Compliance

1

Crime Scene Technician-Police

1

Senior Office Assistant-PW/Administration

1

Office Assistant-PW/Streets

1

Sub-Total

10

Water & Sewer Fund: Additions: Utilities Service Workers-PW/Utilities

3

Sub-Total

3

Net New Positions

13

*Construction Project Manager position added after budget was adopted.

Budget Amendment approved by Commission on December 4, 2013.

Capital Improvements • The City will invest $13,960,688 in Fiscal Year 2014 to address its capital needs. For more on capital, refer to Capital Improvement Program included in this document.

These changes reflect our continued emphasis to maximize customer satisfaction by providing the same quality service levels as last year to the City’s businesses, residents, and employees during difficult economic times.

Net full-time position changes per fiscal year 50

44

40

Excludes Fire Staff for City of Parkland, Florida

40 29 30 20

12

17 14

15

16

13

13 10

8 5

13

7 4

0 -2 -10

-8 -13

-11

-20

Note: Chart shows in Fiscal Year 2014, a net change of thirteen additional full-time positions—ten to the General Fund and three to the Water & Sewer Fund (see detail above). In Fiscal Year 2013, there was a net change of thirteen additional full-time positions—nine 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, with some positions eliminated through attrition and in response to tax reform and 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.

30

Fiscal Year 2014 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.

Bond Ratings We are proud of achieving the highest financial honor bestowed on any municipality—earning a ‘AAA’ from Standard and Poors, ‘Aaa’ rating from Moody’s Investors Service, and ‘AAA’ rating from Fitch Ratings. Such ratings mean the City’s general obligation bonds are considered to be of excellent investment quality, which translates into lower interest rates and corresponding lower interest payments.

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.

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

Net Operating Budget General Fund Special Revenue Funds Fire Fund C.S. Charter School Fund Public Art Fund Enterprise Funds Water and Sewer Fund Solid Waste Fund Internal Service Funds Health Fund/Gen. Ins. Fund Equipment Services Fund Pension Fund Debt Service Fund Total Net Operating Budget

FY 2013 FY 2014 $ % Budget Budget Change Change $153,466,237 $156,536,037 $3,069,800 2.0% 24,291,975 13,960,688 (10,331,287) -42.5% $177,758,212 $170,496,725 ($7,261,487) -4.1%

FY 2013 Budget $66,913,902

FY 2014 Budget $67,814,579

$ % Change Change $900,677 1.3%

11,098,592 10,046,480 86,500

11,873,782 10,488,350 96,500

775,190 441,870 10,000

7.0% 4.4% 11.6%

19,176,769 0

17,811,641 3,106,900

(1,365,128) 3,106,900

-7.1% n/a

15,888,674 16,118,093 8,671,101 9,152,277 13,859,067 13,638,747 7,725,152 6,435,168 $153,466,237 $156,536,037

229,419 481,176 (220,320) (1,289,984) $3,069,800

1.4% 5.5% -1.6% -16.7% 2.0%

Note: For a more comprehensive overview of net budgeted revenues and expenditures/expenses, refer to the Budget Overview section of this Budget.

City of Coral Springs, Florida

31

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.

32

Fiscal Year 2014 Annual Budget

Combined Budget Summary Appropriated Funds Budget—Fiscal Year 2014

Debt Service Fund

General Fund CASH BALANCE BROUGHT FORWARD

$260,000

Capital Projects Fund

$800,000

Public Art Fund

$1,225,800

Solid Waste Fund

$73,000

Water and Sewer Fund $0

$1,600,000

Fire Fund

Charter School Fund

FY 2014 Total Budget

$400,000

$1,026,784

$5,385,584

Revenues By Type: Taxes: Millage Per $1,000 Ad Valorem Taxes $4.5697 Ad Valorem Taxes $0.2033 (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 Total Revenues and Other Financing Sources Grand Total Revenues and Balances

33,651,176 1,497,097 2,103,433 10,356,868 7,374,706 10,332,934 10,831,725 3,643,420 11,917,168 13,380,888 2,019,253 3,643,387 1,159,503

19,979,783 9,516 4,128,555

3,827,185

100,057,593

5,635,168

1,335,822

23,500

3,827,185

20,024,783

17,944,908

$6,435,168

$2,561,622

$96,500

$3,827,185

$21,624,783

$18,344,908

$13,607,757 578,281 55,614,029 7,161,854 250,000 14,645,475 3,695,695 0 4,764,502

Total Expenditures and Other Financing Uses

100,317,593

6,435,168

0

0

$100,317,593

$6,435,168

Total Appropriated Expenditures and Reserves

45,000 23,500

$100,317,593

Expenditures By Type: General Governmental Services Education Public Safety Physical Environment Economic Environment Culture and Recreation Debt Service Capital Improvement Program (Excluding Opeating CIP) Other Financing Sources (Uses)

Reserves

5,000 1,330,822

5,413,774 2,016,809 54,000 77,000 26,457

10,881,566

10,881,566

14,966,904 17,874,310 287,476

96,500 6,435,168

1,660,358

382,860

1,802,639

2,995,144

2,561,622

2,561,622 0 $2,561,622

159,730,525

$11,908,350 $165,116,109

11,908,350 3,827,185

33,651,176 1,497,097 2,103,433 10,356,868 7,374,706 10,332,934 10,831,725 3,643,420 28,212,508 35,377,480 2,073,253 3,779,903 10,496,022

96,500

3,827,185

21,624,783

18,344,908

11,908,350

0

0

0

0

0

$96,500

$3,827,185

$21,624,783

$18,344,908

$13,607,757 12,486,631 70,580,933 28,863,349 537,476 14,741,975 12,174,081 2,561,622 9,562,285

165,116,109 0

$11,908,350 $165,116,109

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 36 and 37 and the “Fiscal Year 2014 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

33

Fund Structure Overview 325

FY 2014 Total Net Budget $170,496,725

FY 2014 Net Operating Budget $156,536,037

General Fund $67,814,579

Enterprise Funds $20,918,541

Water and Sewer $17,811,641 Solid Waste Fund $3,106,900

Special Revenue Funds $22,458,632

Internal Services Funds $25,270,370

Fire $11,873,782 Charter School $10,488,350 Public Art $96,500

Insurance Funds $16,118,093 Equipment Services $9,152,277

Trust and Agency Funds $13,638,747 Pension $13,638,747

Capital Projects Funds $6,435,168 Debt Service $6,435,168

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. Refer to the Appendix section of this document.

34

Fiscal Year 2014 Annual Budget

FY 2014 Capital Budget $13,960,688

General Fund $3,153,930

Enterprise Funds $5,351,000

Water and Sewer $5,351,000

Special Revenue Funds $2,008,173

Internal Services Funds $3,447,585

Fire $1,202,920 Charter School $591,253 Tree Trust $214,000

Equipment Services $3,447,585

City of Coral Springs, Florida

35

Summary of net budgeted revenues—Fiscal Year 2014 FY 2013 Revised Net Budget

General Fund

Percent of Total

FY 2014 Proposed Net Budget

Percent of Total

Dollar Change

Percent Change

$93,968,623

61.2%

$94,589,974

60.4%

$621,351

0.7%

Fire Fund

16,208,294

10.6%

17,119,047

10.9%

910,753

5.6%

Water and Sewer Fund

22,713,254

14.8%

21,624,783

13.8%

(1,088,471)

-4.8%

1,610,000

1.0%

1,338,000

0.8%

(272,000)

-16.9%

11,466,480

7.5%

11,908,350

7.6%

441,870

3.9%

86,500

0.1%

96,500

0.1%

10,000

11.6%

3,517,657

2.3%

3,725,585

2.4%

207,928

5.9%

0

0.0%

3,827,185

2.4%

3,827,185

n/a

3,895,429

2.5%

2,306,613

1.5%

(1,588,816)

-40.8%

Health and General Insurance Funds C. S. Charter School Fund Public Art Fund Equipment Services Fund Solid Waste Fund Debt Service Fund

Total

$153,466,237

100.0% $156,536,037

100.0% $3,069,800

2.0%

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 the interfund transfers.

Fiscal Year 2014 Net Budget—All Funds—Revenues $156,536,037

Equipment Services Fund 2.4%

Solid Waste Fund 2.4%

Water and Sewer Fund 13.8%

Charter School Fund 7.6% Other 1.0%

General Fund 60.4%

Fire Fund 10.9% Debt Service Fund 1.5%

36

Fiscal Year 2014 Annual Budget

Summary of net budgeted expenditures—Fiscal Year 2014 FY 2013 Revised Net Budget

General Fund

Percent of Total

FY 2014 Proposed Net Budget

Percent of Total

Dollar Change

Percent Change

$66,913,902

43.6%

$67,814,579

43.3%

$900,677

1.3%

Fire Fund

11,098,592

7.2%

11,873,782

7.6%

775,190

7.0%

Water and Sewer Fund

19,176,769

12.5%

17,811,641

11.4%

(1,365,128)

-7.1%

Health and General Insurance Funds

15,888,674

10.4%

16,118,093

10.3%

229,419

1.4%

C.S. Charter School Fund

10,046,480

6.5%

10,488,350

6.7%

441,870

4.4%

Public Art Fund Equipment Services Fund Pension Fund Solid Waste Fund Debt Service Fund

Total

86,500

0.1%

96,500

0.1%

10,000

11.6%

8,671,101

5.7%

9,152,277

5.8%

481,176

5.5%

13,859,067

9.0%

13,638,747

8.7%

(220,320)

-1.6%

0

0.0%

3,106,900

2.0%

3,106,900

n/a

7,725,152

5.0%

6,435,168

4.1%

(1,289,984)

-16.7%

$153,466,237

100.0% $156,536,037

100.0% $3,069,800

2.0%

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 2014 Net Budget—All Funds—Expenditures $156,536,037

Insurance Funds 10.3%

Pension Fund 8.7%

Debt Service Fund and Public Art Fund 4.2% Charter School Fund 6.7%

Fire Fund 7.6%

General Fund 43.3%

Water and Sewer Fund 11.4% Solid Waste Fund 2.0%

Equipment Services Fund 5.8%

City of Coral Springs, Florida

37

Where the money comes from by source (all funds) Capital Projects 6.1%

Reserves 3.7%

Fines & Forfeitures 1.2%

Licenses and Permits 2.2%

Ad Valorem Taxes and Assessments 27.6%

Intergovernmental 16.8% Utilities Service Taxes 6.1% Other 5.7%

Charges for Services 20.5%

Franchise Fees 5.8%

Sales and Use Taxes 4.3%

Where the money goes by type of program (all funds) Capital Projects 6.2% Debt Service 8.5%

General Government 8.2% Other Financing Sources 5.0%

Culture and Recreation 8.6%

Education 7.2%

Physical and Economical Environment 14.4%

Public Safety 41.9%

Where the money goes by category (General Fund only) Debt Service 3.6%

Supplies/Services 24.5%

Personal Services/Benefits 71.9%

38

Fiscal Year 2014 Annual Budget