budget highlights fy2015

25City of Coral Springs, FloridaFiscal Year 2015 Annual Budget

Budget HighlightsIntroductionThe 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 BriefThe 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 Single-Family 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.

Tax rate Fiscal Year 2015

General Operating Millage $4.5697

Debt Service Millage $0.2038

Combined City Millage Rate $4.7735

$3.8715 $3.8715 $3.8715

$3.3651 $3.3651

$3.8866$4.3559 $4.3939 $4.5697 $4.5697 $4.5697

$0.0000

$1.0000

$2.0000

$3.0000

$4.0000

$5.0000

$6.0000

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

Operating Millage Rate-5.2% Increase

No change in the Coral Springs Operating millage rate

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.

Voter-approved debt service millage rate

$0.3924

$0.2510$0.2134

$0.1774 $0.1763 $0.1763 $0.1763

$0.2915 $0.2906

$0.2033 $0.2038

$0.0000

$0.2000

$0.4000

$0.6000

$0.8000

$1.0000

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

Voter-Approved Debt Service Millage Rate

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

Operating millage rate comparison Fiscal Year 2015

$7.4479$6.7654

$5.9142 $6.0543 $5.6368 $6.2317$5.2476 $5.0829

$4.5697 $4.1193

$0.0000$1.0000$2.0000$3.0000$4.0000$5.0000$6.0000$7.0000$8.0000

Operating Millage Rate Comparison – 5.2% Increase - $4.5697FY 2015 Proposed

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.

26 City of Coral Springs, FloridaFiscal Year 2015 Annual Budget

• 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.

• 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%.

Changes in Staffing Levels

• 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 full-time 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

40

12 14

17

13

29

8

44

16

5 7

15

-13 -11

-8

-2

4

13 13 14

-20

-10

0

10

20

30

40

50

FY 1

996

FY 1

997

FY 1

998

FY 1

999

FY 2

000

FY 2

001

FY 2

002

FY 2

003

FY 2

004

FY 2

005

FY 2

006

FY 2

007

FY 2

008

FY 2

009

FY 2

010

FY 2

011

FY 2

012

FY 2

013

FY 2

014

FY 2

015

Net Full-Time Position Changes per Fiscal Year Net full-time position changes per fiscal year

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.

• 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.

Position title Dept—Division# of

positions

Economic Development Manager CMO—Economic

Development1

Principal Office Assistant 1

Creative Services Coordinator

CMO—Communications & Marketing

1

Project ManagerInformation Technology

1

Database Analyst 1

Principal Office AssistantDev 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

Full-time additions for Fiscal Year 2015

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


Financial ConditionDespite 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

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.

Intergovernmental Revenue

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 growth-related 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

FY 2014 FY 2015 $ %

Budget Budget Change Change

Net Operating Budget $156,536,037 $161,821,110 $5,285,073 3.4%

Capital Improvements (CIP) 13,960,688 41,836,054 27,875,366 199.7%

Total Financial Program $170,496,725 $203,657,164 $33,160,439 19.4%

FY 2014 FY 2015 $ %

Net Operating Budget Budget Budget Change Change

General Fund $67,814,579 $69,632,817 $1,818,238 2.7%

Special Revenue Funds

Fire Fund 11,873,782 12,198,755 324,973 2.7%

C.S. Charter School Fund 10,488,350 10,008,913 (479,437) -4.6%

Public Art Fund 96,500 222,000 125,500 130.1%

Enterprise Funds

Water and Sewer Fund 17,811,641 18,362,701 551,060 3.1%

Solid Waste Fund 3,106,900 4,157,009 1,050,109 33.8%

Internal Service Funds

Health and General Insurance Funds 16,118,093 16,799,742 681,649 4.2%

Equipment Services Fund 9,152,277 10,755,940 1,603,663 17.5%

Pension Fund 13,638,747 12,898,198 (740,549) -5.4%

Debt Service Fund 6,435,168 6,785,035 349,867 5.4%

Total Net Operating Budget $156,536,037 $161,821,110 $5,285,073 3.4%


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 three-pronged 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 pre-recession 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.


Combined Budget Summary

DEBT CAPITAL PUBLIC SOLID WATER & CHARTERGENERAL SERVICE PROJECTS ART WASTE SEWER FIRE SCHOOL TOTAL

FUND FUND FUND FUND FUND FUND FUND FUND BUDGETCASH BALANCE BROUGHT FORWARD: $400,000 $0 $1,165,327 $195,500 $185,004 $1,928,000 $0 $252,500 $4,126,331ESTIMATED REVENUESTaxes: Millage Per $1,000

Ad Valorem Taxes $4.5697 35,299,267 $35,299,267Ad Valorem Taxes $0.2038 (Voted Debt) 1,574,394 $1,574,394

Solid Waste Assessment 2,124,467 3,972,005 $6,096,472Fire Fund Special Assessment 10,566,521 $10,566,521Sales and Use Taxes 7,673,453 $7,673,453Franchise Fees 10,134,499 $10,134,499Utility Service Taxes 11,070,986 $11,070,986Licenses and Permits 3,735,836 $3,735,836Intergovernmental Revenue 11,810,050 5,535,573 11,176,413 $28,522,036Charges for Services 14,400,669 20,677,485 2,273,716 $37,351,870Fines and Forfeitures 2,219,854 55,020 $2,274,874Miscellaneous Revenues 4,131,757 3,150 311,798 43,250 55,000 $4,544,955Other Financing Sources 225,355 5,207,491 20,058,501 26,500 5,888 $25,523,735

TOTAL REVENUES ANDOTHER FUNDING SOURCES $102,826,193 $6,785,035 $20,370,299 $26,500 $3,972,005 $20,720,735 $18,491,718 $11,176,413 $184,368,898

TOTAL ESTIMATEDREVENUES AND BALANCES $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

EXPENDITURES / EXPENSESGeneral Governmental Services 14,364,474 $14,364,474Education 578,281 11,428,913 $12,007,194Public Safety 56,349,408 15,623,150 $71,972,558Physical Environment 7,269,705 4,121,009 18,771,643 $30,162,357Economic Environment 454,514 250,000 $704,514Culture and Recreation 14,849,766 222,000 $15,071,766Debt Service 4,684,631 6,783,635 1,823,075 472,860 $13,764,201Capital Improvement Program (excluding Operating CIP) 21,535,626 $21,535,626Other Financing Sources (Uses) 4,675,414 1,400 36,000 1,804,017 2,395,708 $8,912,539TOTAL EXPENDITURES/EXPENSES $103,226,193 $6,785,035 $21,535,626 $222,000 $4,157,009 $22,648,735 $18,491,718 $11,428,913 $188,495,229Reserves $0 $0 $0 $0 $0 $0 $0 $0 $0TOTAL APPROPRIATED EXPENDITURESAND RESERVES $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

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.

Appropriated Funds Budget—Fiscal Year 2015

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).


Fund Structure Overview325 FY 2015

Total Operating Budget and Capital$203,657,164

*Indicates appropriated funds in accordance with the Budget Ordinance.

FY 2015Net Operating Budget

$161,821,110

General Fund$69,632,817

Enterprise Funds$22,519,710


$22,429,668

Internal Services Funds

$27,555,682

Trust and Agency Funds

$12,898,198

Water and Sewer$18,362,701

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

Pension$12,898,198

Debt Service$6,785,035

Capital Projects Funds

$6,785,035

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

Fund Name Fund Type Fund Description

General Fund* City Operating FundAccounts for police, code compliance, parks and recreation, public works, building, emergency medical services, and administration services

Fire Fund* Special Revenue FundCovers the fire department and subsequent divisions, including administration, suppression, inspection, training, and communications

Water and Sewer Fund* Enterprise FundProvides water and wastewater services to approximately 51% of Coral Springs residents

Solid Waste Fund* Enterprise FundIncludes the non-franchise portion of the City’s residential solid waste special assessment to cover cost of hauler and disposal fees

Health and General Insurance Funds* Internal Service FundsContribute to the City’s insured general liability, property, workers’ compensation, life, and employee medical benefits

Coral Springs Charter School Fund* Special Revenue FundIncludes the revenues and expenses incurred in the operation of the Coral Springs Charter School

Equipment Services Fund* Internal Service Fund Accounts for the costs of maintaining the City’s fleet

Public Art Fund* Special Revenue FundIncludes the Public Art fee receipts collected during the permitting process for new construction and renovations of existing structures

Pension Fund Trust and Agency FundAccounts for the accumulation of resources to be used for retirement benefit payments to the City’s employees

Debt Service Fund* Debt Service FundCovers the revenues and payment of voter approved long-term general obligation debt and revenue bond debt

Major Funds

Solid Waste Fund$4,157,009


FY 2015Capital Budget

$41,836,054

General Fund$21,735,626

Enterprise Funds$9,493,000


$5,598,528

Internal Services Funds

$5,008,900

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

Equipment Services$5,008,900

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

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.

Fund Structure Overview (continued)


Summary of net budgeted revenues—Fiscal Year 2015

General Fund60.4%

Solid Waste Fund2.6%

Equipment Services Fund3.2%

Water and Sewer Fund14.0%

Charter School Fund7.1%

Other1.0%

Fire Fund10.7%

Debt Service Fund1.0%

Fiscal Year 2015 Net Budget - All Funds - Revenues$161,821,110

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.

FY 2014 Percent FY 2015 PercentAmended of Adopted of Dollar Percent

Net Budget Total Net Budget Total Change Change

General Fund $94,689,974 60.5% $97,769,413 60.4% $3,079,439 3.3%

Fire Fund 17,119,047 10.9% 17,310,587 10.7% 191,540 1.1%

Water and Sewer Fund 21,624,783 13.8% 22,648,735 14.0% 1,023,952 4.7%

Health and General Insurance Funds 1,338,000 0.9% 1,535,000 0.8% 197,000 14.7%

C. S. Charter School Fund 11,908,350 7.6% 11,428,913 7.1% (479,437) -4.0%

Public Art Fund 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%

Total $156,636,037 100.0% $161,821,110 100.0% $5,185,073 3.3%


Summary of net budgeted expenditures—Fiscal Year 2015

General Fund43.0%

Insurance and Health Fund10.4%

Pension Fund8.0%

Debt Service Fund & Public Art Fund

4.3%

Charter School Fund6.2%

Fire Fund7.5%

Water and Sewer Fund11.3%

Equipment Services Fund6.6%

Solid Waste Fund2.6%

Fiscal Year 2015 Net Budget - All Funds - Expenditures$161,821,110

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.

Summary of Net Budgeted Expenditures—FY 2015

FY 2014 Percent FY 2015 PercentAmended of Adopted of Dollar Percent

Net Budget Total Net Budget Total Change Change

General Fund $67,914,579 43.4% $69,632,817 43.0% $1,718,238 2.5%

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%

Public Art Fund 96,500 0.1% 222,000 0.1% 125,500 130.1%

Equipment Services Fund 9,152,277 5.8% 10,755,940 6.6% 1,603,663 17.5%

Pension Fund 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%

Total $156,636,037 100.0% $161,821,110 100.0% $5,185,073 3.3%


Where the money comes from by source (all funds)

Where the money comes from by source

19.6%

8.8%

4.1%

5.4%

5.9%

2.0%15.1%

19.8%

1.2%

2.2%

2.4%

13.5%Ad Valorem Taxes Special AssessmentsSales and Use Taxes Franchise FeesUtility Service Taxes License and PermitsIntergovernmental Charges for ServicesFines and Forfeitures CapitalMisc. Revenues Other Financing Sources

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

Where the money goes by type of program

7.6%

6.4%

38.2%

16.0%

0.4%

8.0%

7.3%

11.4%

4.7%

General Government ServicesEducationPublic SafetyPhysical EnvironmentEconomic EnvironmentCulture and RecreationDebt ServiceCapital ImprovementsOther Financing Uses

Where the money goes by category (General Fund only)

Where the money goes by category (General Fund only)

46.3%

24.9%

18.4%

0.3%

4.2%1.4%

4.5%

Personal ServicesBenefitsOther OperatingCapital ImprovementsNon DepartmentalInterfund TransfersDebt Service

budget highlights fy2015

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