Special City Commission Meeting. September 20, 2011

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1 Special City Commission Meeting September 20,

2 Agenda Staff Presentation Ordinance : User Fees Ordinance : Fines, Liens, and Administrative Costs Resolution : Establish an Operating and Debt Service Millage Rate Ordinance : Annual Operating Budget and Capital Improvement Program 2

3 FY 2012 Budget Highlights Adopt the Rolled-Back Rate Increase by 0.9% from $ to $ The rolled-back rate will actually generate $351,000 less revenue in FY 2012 than in FY 2011 Increase Debt Service millage rate as required by bond covenants, from $ to $ As called for in Ordinance, user fees will increase by the CPI, or 4% (May, Miami-Ft. Lauderdale) With the exception of most recreation fees which will not increase 3

4 FY 2012 Budget Highlights Fire Assessment Fee will increase by $13.93, or 12% from $ to $128.77, for single-family home Increase water rates by 3% per the 2007 Water and Wastewater Rate Study Increase of $1.74 per month for the average home Residential solid waste special assessment will decrease nearly 7%,or $16.56 From $ to $ per single-family household 4

5 Long-time SF Homesteaded Homeowner $800 $700 Will Have A Property Tax Increase $19.59 increase $600 $500 $ $ $ $ $ $400 $ $300 $200 $100 $0 RBR FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 $190,530 $195,290 $201,140 $201,340 $206,770 $209,872 Save Our Homes Value FY 2012 assumes SOH value increase by CPI of 1.5% 5

6 $700 $600 Property Taxes Will Decrease for Non-Homesteaded Condo Owner $500 $400 $300 $200 $ $ $ $ ($19.98) operating millage decrease $100 $0 $ $ RBR FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 $148,650 $175,330 $150,790 $96,770 $53,610 $48,600 Just Value FY 2012 assumes decrease of 9.3% in market value 6

7 Operating Millage Rate Remains One of Lowest in County $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ FY 2011 Adopted FY 2012 Proposed Coral Springs Hollywood Tamarac Miramar Deerfield Beach Sunrise Pembroke Pines Pompano Beach Davie Plantation Coral Springs Ft. Lauderdale Although the City of Weston s operating millage rate is $2.0, each resident is assessed an additional $2,500 - $20,000 non-ad Valorem assessment to pay for median and common area landscaping maintenance. 7

8 FY Fire Assessment Comparison $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ Tamarac Pembroke Pines Miramar Hollywood Ft Lauderdale Sunrise Deerfield Beach Davie Coral Springs $260 $240 $220 $200 $180 $160 $140 $120 $100 $80 $60 $40 $20 $0 FY 2011 Adopted FY 2012 Proposed Coral Springs 8

9 Solid Waste Special Assessment Comparison $450 $400 Annual Rate Coral Springs FY 2012 Proposed $ $ $ $ $ $ $ $ $ $350 $300 $250 $200 $150 $100 $50 FY 2011 $0 Hollywood Ft Lauderdale Davie Miramar Deerfield Beach Weston Sunrise Coral Springs 9

10 FY 2012 Proposed Budget 10

11 FY 2012 Proposed General Fund Budget FY 2011 FY 2012 ($) (%) Departmental Expenditures Budget Budget Change Change City Commission $291,651 $298,557 $6, % City Manager 2,183,473 2,197,975 14, % Human Resources 1,326,691 1,331,306 4, % Financial Services 3,009,036 3,249, , % Information Services 2,605,489 2,670,743 65, % City Attorney 937, ,120 (92,492) -9.86% Development Services/Engineering 452, ,169 9, % Community Development 1,258,133 1,361, , % Police 45,346,087 46,823,819 1,477, % Code Enforcement 1,648,690 1,783, , % Emergency Medical Services 8,470,148 8,732, , % Building 2,502,196 2,587,960 85, % Public Works 4,151,259 4,139,665 (11,594) -0.28% Parks & Recreation 8,634,215 9,403, , % Aquatics 2,287,404 2,382,255 94, % Sportsplex & Tennis 1,620,678 1,668,046 47, % Total Departmental $86,725,283 $89,936,725 $3,211, % Non-Dep. Expenditures includes 8,269,677 8,036,586 (233,091) -2.82% debt service Total Expenditures $94,994,960 $97,973,311 $2,978, % For discussion purposes only. 11

12 Fund Structure FY 2012 Net Operating Budget 12

13 Fund Structure FY 2012 Capital Budget 13

14 Step Down Use of Undesignated Reserves $4.5 $4.0 $3.5 $3.0 $3.55 $4.05 $3.00 $ Millions $2.5 $2.0 $1.90 $1.5 $1.0 $1.64 $0.5 $0.0 $0.00 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 * Does not include use of Forfeiture Funds for SRO salaries. 14

15 FY 2012 General Fund Key Expense Drivers Health Care cost increased 17% = $1.3 million Other Post-Employment Benefits (OPEB) = $830,000 Community Pride initiatives = $414,000 Recovery Zone Bond net debt service = $355,000 Police pension increase = $300,000 Fuel cost increased by 28% = $292,000 Internal auditor = $100,000 15

16 The City Will Have the Same Number of Full-Time Employees as Did in # of Budgeted Positions Proposed 700 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY

17 FY 2012 Budget Focus Areas Community Aesthetics Public Safety Educational Excellence Local Business Vitality 17

18 Examples of Business Plan Initiatives Infrastructure improvements to jump start Downtown Development plan Mullins park revitalization includes replacing three aging buildings Community Pride pressure cleaning, enhanced tree canopy, median maintenance, upgrade landscaping on City property Fire Station 71 construction Increased funding for the Economic Development Foundation Closed captioning of Commission meetings The FY 2012 Business Plan includes 32 new and 29 on-going initiatives. 18

19 Community of Excellence Thank You 19

20 Impact on Typical Homeowner Adopt rolled-back rate Single-Family $19.59 Condominium ($19.98) Fire Assessment Fee $13.93 $5.39 Solid Waste Assessment ($16.56) ($16.56) Total Impact $16.96 ($31.15) Debt Service millage $18.96 $4.72 Total impact including Debt Service $35.92 ($26.43) 20

21 Actions Taken to Reduce Expenses Action Reduced staffing by 30 positions since 2007 Wage freeze for all employees in FY 10 and for senior staff in FY 11 Reduced Health Plan expenses Reduced operating expenses Annual savings from long-term debt refunding Total Annual Savings Annual Savings $2.50 M $2.1 M $560k $500k $4.3 M $9.96 M 21

22 Property Tax Revenue Eroded by Tax Relief and the Recession $40 $35 $30 Phase I of Property Tax Relief $35.41 Phase II of Property Tax Relief $33.74 $31.95 $31.38 $31.25 $4.52 million less since 2007 $30.89 Millions $25 $20 millage rate $ millage rate $ millage rate $ millage rate $ millage rate $ rolled-back rate $ $15 $10 Actual Actual Actual FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 Actual Budget Estimate Assuming RBR 22

23 The City will collect less revenue in $100 FY 2012 than it did in FY 2007 $95 $90 $85 $96.31 $93.93 $89.82 $89.41 $90.19 $92.42 $80 Millions $75 $70 $65 $60 $55 Actual Actual Actual Actual Budget Projection Based on RBR $50 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 Does not include reserves or forfeiture funds 23

24 24 24

25 23% above U.S./28% above Florida 12% above U.S./7% above Florida 6% above U.S. 23% above U.S./19% above Florida 25 25

26 How Much of Your Tax Bill Goes to the City? (Proposed FY 2012) Other 2% North Broward Hospital District 9% Broward School District Broward County $1, City of Coral Springs Broward County 26% City of Coral Springs 22% North Broward Hospital District South Florida Water Mgmt District South Florida Water Mgmt District 2% Broward School District 39% Other (Children s Service and Florida Inland Navigation District) Total Ad Valorem/Debt Tax Bill $3,

27 Where the Money Comes From (FY 2012 General Fund) Other 6.2% Fines 1.9% Reserves 3.6% Inter-Governmental 12.7% License & Permits 4.2% Fee for Service 11.9% Sales Tax 7.3% Property Taxes 33.0% Franchise Fees 9.3% Utility Service Tax 9.9% 27

28 Where the Money Goes (FY 2012 General Fund Budget) Dev. Services 6.3% CMO 2.3% Finance 3.3% Parks & Rec 9.6% Aquatics 2.4% HR 1.4% Non- Departmental 8.2% EMS $8,732, % Sportsplex 1.7% Public Works 4.2% IS 2.7% Other 1.2% Police $46,823, % 28

29 FY 2012 Fire Assessment Fees Use Category FY 2011 Fee FY 2012 Fee Increase/ Decrease ($) Increase/ Decrease (%) Single-family Multi-family Commercial Industrial, Warehouse Institutional, Government $ per unit $ per unit $17.19 per 100 sq ft $2.25 per 100 sq ft $20.21 per 100 sq ft $ $ % $ $ % $17.65 $ % $2.45 $ % $22.33 $ % 29

30 General Fund Non-Departmental Budget FY 2011 FY 2011 FY 2012 $ % Budget YTD Budget Change Change Non-Departmental Operating Expenditures as of Miscellaneous Cross-Departmental Expenses Other Contractual Services $111,575 $110,459 $100,000 ($11,575) % Festival of the Arts 10,000 10,000 12,500 2, % Lobbyist 42,500 30,250 42, % Center for the Arts Rentals 10,000 5,605 10, % Hurricane Preparedness (Safety) 6,500 5,135 6, % Special Event Banner Printing 10,000 5,489 50,000 40, % Special Projects Business Development/EDF 20,000 24,390 20, % Boards & Advisory Committees Boards & Commissions Expense 17,500 9,834 17, % Accessibility Issues (Disability) 2,500 1,650 2, % Historical Advisory Committee 15,000 7,059 15, % Multi-Cultural Events 35,000 23,111 35, % Martin Luther King, Jr. Day Celebration 15,000 13,133 15, % Grants Youth & Family Grants 19,000 20,723 0 (19,000) % Special Events Grants 15,000 14,603 0 (15,000) % Sports Event Grants 20,000 19,500 25,000 5, % Community Chest 50,000 50,000 50, % Events Holiday Parade 20,000 17,516 20, % 4th of July 40,000 33,740 40, % Anniversary Committee 0 25,000 25,000 n/a Total Non-Departmental Expenditures $459,575 $402,197 $486,500 $26, % 30

31 User Fees, Fines, Liens, and Administrative Cost Recovery 31

32 Per Ordinance, User Fees Will Increase by CPI Parks and Recreation No increases Others increase by 4% Building Community Development/Zoning Code enforcement user fees Fire inspection, EMS transport fees Police (e.g., alarm registration) Engineering (e.g., land clearing permit) 32

33 Community Development User Fees Anticipated number of Incidents Current Charge New Charge Comprehensive plan amendment (CPA) 0-1 $2,193 $5,200 Land development amendment (LDA) 0-1 $1,900 $3,500 Abandonment of right-of-way (AR) 0-1 $615 $2,000 Development review committee residential (DRC-R) 0-1 $2,406 $2,648 Development review committee non residential (DRC-C) 8 $2,590 $2,590 Platting (SUB) 0-1 $1,479 $2,000 33

34 Community Development User Fees Anticipated number of Incidents Current Charge New Charge Special exception conditional use (SE) 4 $1,834 $1,900 Conditional use 2 $2,022 $3,000 Major revision residential (DRC-R) 1 $956 $1,674 Major revision non-residential (DRC-C) 10 $969 $1,900 Minor revision (DRC-R) 20 $134 $510 34

35 Requests for Information and Recording Liens Anticipated number of Incidents Current Charge New Charge Request for information on outstanding liens Water billing 3,333 $20 $75 Request for information on outstanding liens Code 3,100 $20 $75 Lien preparation and recording 709 $50 $100 Lien release with recording 225 $45 $100 35

36 Code Enforcement Administrative Cost Recovery Processing of case before special magistrate Anticipated number of Incidents Current Charge New Charge a) Complied case prior to special magistrate hearing but after Notice of Violation issued 300 $0 $150 b) Complied case after issuance of Final Order but prior to compliance date provided in Order 800 $0 $250 c) Non-compliance with Final Order resulting in Certification of Lien Hearing 538 $200 $500 Request for reduction of fine 140 $0 $300 Administrative costs for abatement 148 $50 $100 Request for stipulated agreement 10 $0 $300 Administrative citation 306 $50 $100 Special Set Hearing 5 $0 *$100 *plus special magistrate costs 36

37 On-Going Initiatives Included in the FY 2012 Base Budget Parks Community Pride initiatives Tree maintenance Increased median maintenance Park common area fertilization Pressure washing City tree fertilization (Funded via Tree Trust Fund) $167,000 $91,000 $90,000 $66,000 $20,000 37

38 Other Initiatives Included in FY 2012 Budget Mullins Park revitalization Landscaping, painting, and other improvements at the Aquatics Complex Phase II of indexing signs/banners Funding for Internal Auditor Increased funding for EDF Funding for 50 th Anniversary Committee Street lighting improvements $400,000 $330,500 $150,000 $100,000 $76,000 $25,000 $25,000 38

39 Cash Fund Capital Requirements Total Cost $500,000 $400,000 $200,000 $125,000 $125,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $80,000 $35,000 Project Gym (e.g., roof, bleachers, landscaping, lighting, restroom repairs) Entryway Improvements (cost to improve one entryway) Mullins Park playground equipment Computerized survey of roadway conditions Linear Park landscaping and irrigation Cypress pathway overlay Cypress Hall renovation Betti Stradling Park parking lot overlay and striping Sartory Hall face lift Castlewood Park landscaping, irrigation, fencing, etc Park signage Wiles Road median irrigation Hire 1 full-time grant writer 39

40 Provide for Annual Debt Service on Annual Debt Service $745,000 $320,000 $266,000 $192,000 up to $15 Million Bond Project Mullins Park Improvements -pathway and court lighting, landscaping, artificial turf fields, fencing, lightning detection, etc Transportation Improvements -pave approximately 30 miles of city roads or -pave 20 miles, Univ. Dr. North, and parking lots* Cypress Park Improvements -building renovation, lighting, landscaping, artificial turf fields, restroom renovations, etc Betti Stradling Park Improvements Total Cost $7,000,000 $3,000,000 $2,500,000 $1,800,000 -pathway overlay, skateboard park equip, fencing, restroom renovations, lightning detection, etc City parking lots scheduled for paving in FY 2013 and 2104: North Community Park, Tennis Center, Betti Stradling Park, Charter School, Library, Gym. Debt service calculation based on 4%, 12 years 40

41 Provide for Annual Debt Service on up to $15 Million Bond Annual Debt Service $170,000 $106,000 $90,000 $90,000 $80,000 $42,000 $42,000 Project North Community Park Improvements -building and restroom renovations, landscaping, fencing, shade covers, pathway overlay, etc Neighborhood Park Improvements -restroom renovation, fencing, landscaping, irrigation, parking lot overlay, etc Energy Efficient Sports Field Lighting -Mullins Park Safety Town Replace City phone system Forest Hills Park building Little League building (Mullins Park) Total Cost $1,600,000 $1,000,000 $800,000 $800,000 $750,000 $400,000 $400,000 Debt service calculation based on 4%, 12 years 41

42 Property Tax Options FY 2012 General Fund 3. Adopt a millage rate above the current millage rate to fund specific initiatives % Above Current Millage Additional Revenue (Above RBR) Millage Rate 0.9% (RBR) 2% 3% 4% 5% -- $347,520 $653,839 $960,157 $1,264,401 $ $ $ $ $

43 FY 2012 General Fund Revenue Drivers Electric Franchise Fee $200,000; Communications Service Tax $300,000 less than the FY 2011 budget Court fine revenue ($100,000) and interest income ($450,000) will also be less than in FY 2011 Resource Recovery Distribution ($375,000) ends Expecting 0% growth in intergovernmental revenues e.g., half-cent sales tax, local option gas tax, bus fare revenue Loss of revenue offset by increases in building permit fees, other user fees, tower leases, lien search revenue, and solid waste franchise fees. 43

44 Impact on Local Businesses Business name (value change) Wendy s (1.39% decrease in value) ABB Concise (10.6% decrease in value) First Data (11.7% decrease in value) Alliance Entertainment (0% change value) Type and size of business 2,946 sq ft drive-in restaurant (14,653 sq ft land) 75,110 sq ft light manufacturing (250,265 sq ft land) 107,736 sq ft multi-story office building (346,070 sq ft land) 240,200 sq ft warehouse (18.9 acres land) Change over last year (FY 2012 RBR) $70.96 ($1,898.08) ($1,940.09) $2, Includes operating, debt service millage, and fire assessment fee. Does not include tangible personal property tax. 44

45 Outstanding General Obligation Bonds GO Bond 2012 Debt Service Outstanding Balance Retirement (as of Sept 30, 2011) 2003A $355,400 $680, A $610,413 $2,255, B $532,704 $3,680, (Public $551,438 $13,500, Safety Bldg) Total 2012 G.O. Bonds Debt Service: $2,049,955 45

46 Wrap-Around Debt Keeps Debt Service Consistent GO Bond 2003A 2005A 2005B 2006 Total 2011 $355,150 $604,425 $524,441 $551,438 $2,035, , , , ,438 $2,049,955 Fiscal Year , , , , , , , , , ,438 $2,062,353 $1,702,878 $1,707, ,078 1,121,437 $1,663, GO Bond paying interest-only until

47 Debt Service Fund Balance Used To Keep Debt Service Millage Low FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 Adopted Debt Service Millage $ $ $ $ $ Full Debt Service Millage $ $ $ $ $ Amount of Debt Service Fund Balance Used $244,305 $357,060 $523,858 $770,620 $0 Total Debt Service Fund Balance Used: $1,895,843 Current Debt Service Fund Balance: $2,084,690 47

48 Outstanding Revenue Bonds Bond 2012 Debt Service Outstanding Balance Retirement (as of Sept 30, 2011) 2004 Franchise Revenue Bond $1,758,556 $13,315, Capital Revenue Bond $1,665,863 $13,600, Recovery Zone Bond $405,517 $5,913, Total 2012 Revenue Bonds Debt Service: $3,829,936 48