Board of County Commissioners

Transcription

1 BROWARD COUNTY, FLORIDA Board of County Commissioners Martin David Kiar Commissioner, District 1 Kristin D. Jacobs Commissioner, District 2 Stacy Ritter Commissioner, District 3 Chip LaMarca Commissioner, District 4 Lois Wexler Commissioner, District 5 Sue N. Gunzburger Commissioner, District 6 Tim Ryan Vice Mayor, District 7 Barbara Sharief Mayor, District 8 Dale V.C. Holness Commissioner, District 9 Bertha Henry County Administrator Kayla Olsen Director, Office of Management and Budget

2 FISCAL YEAR 2015 ADOPTED BUDGET-IN-BRIEF The Adopted Broward County Budget provides Broward County residents, and the Board of County Commissioners, with a funding plan for FY15. Three documents summarize the policies that were used to develop the budget; the financial and budgetary details that make up the budget; and most importantly, descriptions of the programs and capital projects that are provided with the public's funds. The Budget-in-Brief includes the County Administrator's budget message to the Board of County Commissioners. The message discusses budgetary policy issues and the concepts upon which the budget was developed. The Budget-in-Brief also includes an analysis of the County's primary revenue sources such as property taxes and sales taxes, a summary of the major changes in recommended appropriations, various budget highlights, a glossary of the terms used throughout the budget documents, and an overview of how the budget was developed. Two other budget documents provide additional information: The FY15 Operating Budget provides summaries of the entire budget, budgetary detail by program, and explains increases and decreases in each agency's budget. It also sets out programmatic objectives, provides performance measures, and describes the level of service provided by Broward County agencies. The FY15-19 Capital Program provides detailed information on all construction and other capital and infrastructure projects programmed for FY It also includes the County s Debt Service Budget. If you have any questions or desire additional information please call the Office of Management and Budget at , or visit us at

3 PREPARED BY Office of Management and Budget Kayla Olsen, Director Marci Gelman, Assistant Director STAFF Anais Anderson Kristen Chamberlain Jason Earl Eric Garretty Cheryl Hambor William Hodge Herman Laurette Jean Sam Ling J. Michael Munger Maureen Shields Elizabet Sierra Jennifer Steelman Vladislav Steere

4 GOVERNMENTAL STRUCTURE OF BROWARD COUNTY ELECTORATE COUNTY ATTORNEY COUNTY AUDITOR COUNTY COMMISSION NINE MEMBER BOARD ELECTIONS SUPERVISOR PROPERTY APPRAISER DEPUTY COUNTY ADMINISTRATOR COUNTY ADMINISTRATOR ASSISTANTS TO COUNTY ADMINISTRATOR ASSISTANT COUNTY ADMINISTRATOR OFFICE OF MEDICAL EXAMINER & TRAUMA SERVICES OFFICE OF PUBLIC COMMUNICATIONS OFFICE OF INTERGOVERNMENTAL AFFAIRS & PROFESSIONAL STANDARDS OFFICE OF ECONOMIC & SMALL BUSINESS DEVELOPMENT OFFICE OF MANAGEMENT & BUDGET GREATER FORT LAUDERDALE CONVENTION & VISITORS BUREAU OFFICE OF COMMUNICATIONS TECHNOLOGY ENVIRONMENTAL PROTECTION & GROWTH MANAGEMENT HUMAN SERVICES PUBLIC WORKS FINANCE & ADMINISTRATIVE SERVICES AVIATION CULTURAL DIVISION PLANNING & REDEVELOPMENT ENVIRONMENTAL PLANNING & COMMUNITY RESILIENCE BROWARD ADDICTION RECOVERY CENTER CONSTRUCTION MANAGEMENT SEAPORT ENGINEERING & CONSTRUCTION ACCOUNTING AIRPORT EXPANSION PROGRAM FINANCE LIBRARIES PARKS & RECREATION EMERGENCY MANAGEMENT HOUSING FINANCE & COMMUNITY DEVELOPMENT POLLUTION PREVENTION ENVIRONMENTAL LICENSING & BUILDING PERMITTING ANIMAL CARE & ADOPTION COMMUNITY PARTNERSHIPS (Children, Homeless and Health Care Services) ELDERLY & VETERANS SERVICES FAMILY SUCCESS ADMINISTRATION FACILITIES MANAGEMENT HIGHWAY & BRIDGE MAINTENANCE HIGHWAY CONSTRUCTION & ENGINEERING TRAFFIC ENGINEERING SOLID WASTE & RECYCLING SERVICES WATER & WASTEWATER SERVICES ENTERPRISE TECHNOLOGY SERVICES HUMAN RESOURCES PURCHASING RECORDS, TAXES & TREASURY BUSINESS & PROPERTIES MANAGEMENT CAPITAL IMPROVEMENT PROJECTS PLANNING ADMINISTRATION MAINTENANCE OPERATIONS RISK MANAGEMENT Broward County, Florida Fiscal Year 2015 Recommended Operating Budget JUDICIARY SHERIFF PLANNING COUNCIL PORT EVERGLADES BUSINESS ADMINISTRATION BUSINESS DEVELOPMENT FINANCE OPERATIONS OFFICE OF THE INSPECTOR GENERAL TRANSPORTATION FLEET SERVICES TRANSIT IV

5 TABLE OF CONTENTS County Administrator's Budget Message... 1 FY15 Budgeting Process... 4 Total County Budget - An Overview... 5 Fiscal Year 2015 Revenues... 9 Overview Property Taxes Fees & Charges Sales Taxes State Revenue Sharing Gas Taxes Fund Balance Fiscal Year 2015 Appropriations Operating Budget General Fund Major Special Purpose Funds Enterprise Funds Unincorporated Area Budgets Capital Outlay Budget Debt Service Budget Appendix Broward County Demographic Information Consolidated All Funds Summary Millage Summary Ten Year Non-Voted Millage History Changes in Authorized Positions Glossary of Terms

6

7

8

9 FY15 BUDGETING PROCESS Broward County s budgeting process is a performance based approach that considers each program based on the outcomes it delivers, not the activities it conducts. This approach results in budget decisions based on the end results of the services provided. The Board of County Commissioners has consistently balanced the demands for services with the need for responsible stewardship of public funds. By taking a proactive, outcome-oriented approach to budgeting, Broward was prepared for the State-mandated rollback of property taxes in FY08, the approval of Amendment 1 that reduced the tax roll for FY09, and the substantial decline in the tax roll due to economic conditions during fiscal years While the FY15 tax roll is 6.7% higher than the FY14 budgeted roll, it is still 20% lower than the FY08 tax roll. Commission vision statements and goals along with budget background information and tax-roll projections were discussed by the Board of County Commissioners at a pre-budget retreat held in March. Four more workshops in May and June addressed Enterprise Fund agencies, Generally-Funded County agency budgets, Constitutional Officer budgets, and the impact of updated tax roll information on projected ad valorem tax revenue. Conceptual direction from the workshops assisted the County Administrator and Department Directors in formulating the Recommended Budget. In August, one final workshop was held primarily to review a variety of capital programs and projects. The Board held two budget public hearings in September and the budget and capital program were adopted at the final hearing on September 23, Broward County, Florida Fiscal Year

10 OVERVIEW OF FY15 BUDGET The County provides many services with its funds, which are categorized into four broad service areas. Regional services are those that the County provides countywide. Contract regional services include those that the County Commission has determined to be available to all County residents by contract such as Broward Sheriff s Office (BSO) road patrol, and building and permitting services. Municipal services are those that the County provides to the unincorporated area only. Municipal services will be provided by the cities as these areas are annexed. The final category is internal services which includes the support services that the County must provide to itself to do business. The chart below shows all County services under the four categories that have been described: Regional Services Regional Services Contract Regional Municipal Services Internal Services (Continued) Services* Airport Nuisance Abatement Road Patrol Code Enforcement Accounting Animal Care & Adoption Auto Tag Licensing Plat Review Port Building Code Services Garbage Collection Lot Clearing Audit Services Collection & Investment Child Care Food Service Inspection Collection of Taxes Consumer Affairs Property Assessments Recording Official & Public Records Documents Redevelopment Fire Rescue Municipal-Level Services Aquatic Weed Control Neighborhood Parks Neighborhood Planning Neighborhood Roads of Revenue Comprehensive Planning County Administration Equal Opportunity Contractor Licensing Convention Center Consolidated Dispatch Regional Communications Regional Fire Rescue Regional Parks School Crossing Guards Zoning Code Services Facility Construction/Facilities Maintenance Fleet Services Cultural Programs Detention Economic Development Regional Roadway Construction/ Maint. Small Business Opportunity GIS Services Human Resources Information Technology Elections Administration Environmental Protection Tourism Development Traffic Engineering Intergovernmental Relations Internal Investigations Health Care Housing Transit Legal Services Management & Budget Homeless Services Transportation Planning Professional Standards Human Services Trauma Mgmt. Services Purchasing Human Rights Protection Value Adjustment Board Records Storage Land Use, Comp. Planning & Development Mgmt. Law Enforcement Water and Wastewater Treatment and Transmission Radio Maintenance Risk Management Telephone Services Specialized Services Libraries Water Management Waterways Management Medical Examiner Services Mosquito Control * Contract regional services are funded by contractual payments from the cities. 5 Broward County, Florida Fiscal Year 2015

11 Another way to view the budget is to categorize the expenses according to the type of expense, i.e., operating budget, capital budget or debt service budget. The following chart illustrates where the resources are allocated: Debt Service 19% Capital 19% Operating 62% The Operating Budget includes the ongoing activities of the County government from enterprise operations which are totally user fee supported, to special purpose operations which are supported with users fees and other non-property tax revenues, to general purpose operations which are supported by a mixture of user fees, assessments, property taxes and other revenues. The Capital Budget includes all major projects (construction, improvement and acquisition of facilities and infrastructure) funded by a variety of funding sources. The most significant revenues are taxes, bond and loan proceeds, grants, user fees, and fund balances. The Debt Service Budget provides for payment of principal and interest on revenue bonds and general obligation (voted) bonds and the required reserves. The following graphs provide an overview of the major activities funded in the operating, capital and debt service budgets: Broward County, Florida Fiscal Year

12 Elected/Judicial Reserves & Non-Departmental Finance Public Works Aviation Transportation Human Services Libraries, Parks, & Cultural Port Everglades County Admin/Commission Boards & Agencies Envir Protect & Growth Mgmt Operating (Millions) $346.7 $270.0 $247.3 $221.3 $144.3 $120.7 $104.1 $97.6 $98.9 $55.4 $48.1 $787.4 $0 $100 $200 $300 $400 $500 $600 $700 $800 $900 Capital (Millions) Aviation $129.9 Transportation Port Everglades $188.4 $179.8 Water & Wastewater General Government Facilities and Equipment Recreation, Tourism and Environmental $52.7 $88.4 $142.4 Unincorporated Improvements Public Safety/Judicial Community Development $8.7 $10.7 $7.2 $0 $50 $100 $150 $200 7 Broward County, Florida Fiscal Year 2015

13 Debt Service (Millions) Aviation $552.9 Water/Wastewater $81.2 Port Everglades $42.2 General Obligation $35.9 Civic Arena $31.8 Courthouse Bonds $25.3 General Fund Non-Ad Valorem $4.3 $0 $100 $200 $300 $400 $500 $600 To understand the County Budget, it is necessary to view it from the perspective of both revenues and appropriations. The next two sections describe how the budget is supported by revenues and the major changes to appropriations from FY14 to FY15. Broward County, Florida Fiscal Year

14 FY15 REVENUES Overview County services are funded with a variety of revenue sources. These sources include the following: property taxes, miscellaneous taxes and assessments, federal and state grants, fees and charges, interest income, fund balance, and other miscellaneous revenue sources. The majority of these revenue sources are either committed to recurring programs, capital projects, or to mandatory debt service reserves. These "committed" revenues represent "inflexible" resources. In other words, these are funding sources that must, by law, be expended for specific designated purposes. Generally, federal and state revenues have significant "inflexible components." A considerable portion of these funds represent revenue sources designated for various capital improvements, such as community development projects, airport expansion, port expansion, and transit. The remaining portion represents federal and state revenue sources which are used for operating budget purposes. Historically, the most flexible resource available to local governments has been the property tax. Enterprise funds, which support some of the most expensive county services (such as the airport, the port, and water/wastewater) are funded by their own designated revenues, while some of the most visible County services (such as law enforcement, libraries and parks) are funded primarily with property taxes. The FY15 budget is supported by $806.9 million in County-wide property taxes, or 20 percent of the total budget. Property Taxes In FY15, overall Countywide property tax revenue increases $50.9 million when compared to the FY14 adopted budget and $54.4 million when compared to the final amount of taxes levied in FY14 due to the roll declining since last July. These taxes are allocated to three separate funds: Fund FY 14 Adopted Taxes FY 14 Actual Taxes Levied (dollars in millions) FY 15 Adopted Taxes General Fund $ $ $ Voter Approved Debt Service $37.40 $37.20 $37.30 Capital Outlay Fund $10.00 $10.00 $16.10 Total $ $ $ From the taxpayer's perspective, the County is obligated to answer two basic questions: "How much does it cost me?" and "What do I receive in return?" For FY15, homestead properties with Save Our Homes differential and an average taxable value of $127,000 will experience an estimated increase in 9 Broward County, Florida Fiscal Year 2015

15 taxes of $17. Other residential properties, primarily non-homesteaded properties, with an average taxable value of $142,000 will experience an estimated increase of $58. The charts below depict changes in taxable value for residential properties and a comparison of County taxes based on the FY15 total millage rate of 5.723, which is the same rate as FY14. Homestead Property with Save Our Homes Differential (based on the State-mandated 1.5% maximum increase in assessed value) FY14 FY15 Taxable Value $124,000 $127,000 Property Taxes $710 $727 Change FY14 to FY15 $17 Other Residential Properties (based on the percent change in the average taxable value for all other residential properties) FY14 FY15 Taxable Value $132,000 $142,000 Property Taxes $755 $813 Change FY14 to FY15 $58 Once the amount of dollars needed to support the tax supported budget is determined, there are two factors that must be considered. The first factor is the millage rate or property tax rate that, when applied to the tax roll, generates the necessary tax dollars to support County operations. State law places a ten mill (ten dollars per thousand dollars of taxable value) cap on local governments, excluding voted debt service. Broward County is at fifty-five percent (55%) of the state limit for FY15. The following chart shows the Countywide operating and voted debt service millage rates since FY06: Broward County, Florida Fiscal Year

16 Millage Rates FY Millage Rate Countywide Voted Debt The second factor is the tax roll which represents the total value of taxable property in Broward County. The tax roll is determined by the Property Appraiser. The following chart illustrates the changes in the tax roll since FY06 including the decline as a result of Amendment 1 and the economy: Total Taxable Property Value FY06-15 Billions of Dollars Broward County, Florida Fiscal Year 2015

17 The Property Appraiser adjusts the tax roll for two basic reasons: Reassessments - increases (or decreases) in the assessed value of existing property. As a result of this year's reassessment, taxable property values increased approximately 5.8% compared to this year s budgeted roll excluding the addition of newly constructed buildings and improvements to the tax roll. Growth - increases due to the addition of newly constructed buildings and improvements to the tax roll. Growth represents a.9 percent increase in the FY15 tax roll over the current year. The fact that we levy $806.9 million in County-wide taxes in FY15 does not guarantee that we will collect the entire levy. Historically, Broward County has collected from 94 to 96 percent of the taxes levied. The factors that affect collections are the following: Discounts - The early payment of tax bills allows taxpayers to receive up to a four percent discount. Non-payment - Some taxpayers choose not to pay at all. The health of the economy will influence this factor. Value Adjustment Board (VAB) - Taxpayers can appeal their assessments and exemptions to the VAB. Successful appeals will lower the tax roll after the budget is adopted. These factors are partially offset by the fact that state law requires that local government s budget no more than 95 percent of expected revenues. Therefore, if we collect 95 percent we "breakeven." As shown on the chart below, the percentage of uncollected property taxes can be greater than five percent. Uncollected Property Taxes FY Percent Uncollected Discounts Uncollectible VAB Adjustment Broward County, Florida Fiscal Year

18 OTHER MAJOR COUNTY REVENUE SOURCES Fees and Charges Fees and charges represent a revenue source which is largely "inflexible" within broad categories for the County. Many of the fees which the County collects are determined by State Statutes. For example, tax collection fees and recording fees are set by state law. User fees and charges are seen as equitable funding mechanisms because individuals pay for only those services used. Park entrance fees and bus fares are typical examples of these charges and fees. The County is continually striving to maximize the revenues generated by user fees and charges as a means to provide services yet minimize increases in property taxes. User fees are also the primary revenue source supporting operations and capital projects for our enterprise funds - the Airport, the Port, Solid Waste Management, and Water/Wastewater. Fees and charges for those operations are discussed in the Enterprise Operating portion of the Appropriations section of this document. Sales Tax In 1983, the state dedicated one-half cent of additional sales taxes for local governments, of which approximately 40 percent is distributed to the County and 60 percent to the municipalities. Sales tax ranks only after property taxes as the most significant "flexible" revenue source available to the County in terms of the flexibility the County has to allocate the proceeds. However, the County s ability to levy additional sales taxes is extremely limited and requires voter approval. Revenues from the County s portion of the half-cent sales tax are used to support the following in FY15: General Fund programs ($60.6 million); transportation operations divisions ($14.0 million); and unincorporated emergency medical and fire protection services ($.6 million). The amount used for emergency medical and fire protection services is based on the amount of sales tax that the County receives based on the population of the unincorporated area. The County s share of sales tax revenues peaked in FY06 at $74 million and then steadily declined until it reached a low of $59.3 million in FY09. Sales tax revenues have increased steadily since that time and are forecasted to reach approximately $72 million in FY14. In FY15, $75.2 million is budgeted in sales tax revenues. The following chart illustrates the historical trend: 13 Broward County, Florida Fiscal Year 2015

19 Half Cent Sales Tax Revenue FY06-15 Millions of Dollars State Revenue Sharing Another "flexible" resource available to Broward County is State Revenue Sharing. These funds are distributed to Counties based on a population formula. In FY15, $26.6 million will support General Fund Countywide Programs. The remaining $.2 million of the County s share is allocated to the Municipal Service District Fund to support unincorporated area services. State Revenue Sharing revenue peaked in FY06 at $27.4 million and then steadily declined until it reached a low of $21.4 million in FY10. State Revenue Sharing revenues have increased steadily since that time and are forecasted to reach approximately $25.8 million in FY14. In FY15, a total of $26.8 million is budgeted in State Revenue Sharing revenues. The following chart illustrates the historical trend: Broward County, Florida Fiscal Year

20 State Revenue Sharing Funds FY Millions of Dollars Gas Taxes The County's transportation programs are supported by seven different gas taxes. These user-oriented taxes are summarized below: Seventh Cent (County) Gas Tax ($6.3 million) This one-cent gas tax is used to fund transportation operations such as Highway Construction and Engineering, Traffic Engineering and Highway and Bridge Maintenance programs. Constitutional Gas Tax ($14.2 million) - This two-cent gas tax is allocated to road construction and maintenance projects. The Original Local Option Gas Tax ($29.4 million) This six-cent gas tax supports Transit operations. The Ninth Cent Gas Tax ($8.5 million) - This one-cent gas tax supports Transit operations. The 1994 Local Option Gas Tax ($10.6 million) This three-cent gas tax is allocated for Transit operations. The 1998 Local Option Gas Tax ($7.2 million) This one-cent gas tax supports Transit operations. When the tax was adopted, appropriating the additional gas taxes to support transit operations enabled the reallocation of General Fund resources to support homeless programs. The 2000 Local Option Gas Tax ($5.4 million) - This one cent gas tax funds Transit services and a portion of Transit s community shuttle program. 15 Broward County, Florida Fiscal Year 2015

21 Other Revenues A significant proportion of the total County Budget is supported by fund balances. Fund balances are the funds remaining at the end of a fiscal year which are carried over to support the budget in the next fiscal year. Most fund balances are restricted and obligated for a specific purpose. The budgeted fund balance in the General Fund is $159.8 million in FY15. In the enterprise funds, the budgeted fund balance is $579.5 million in FY15. Broward County, Florida Fiscal Year

22 FY15 APPROPRIATIONS The following sections will provide highlights on changes to budgeted appropriations from FY14 to FY15. OPERATING BUDGET HIGHLIGHTS The total Operating Budget for FY15 has increased Debt $68.6 million or three percent from the FY14 budget. Service 19% Specific highlights for the General Fund, Special Capital 19% Operating Purpose, Enterprise Funds and Unincorporated Areas 62% budgets are summarized below. General Fund (FY15 Budget - $1,068,447,420) Appropriations increase approximately $45.7 million or 4.5% percent primarily attributable to the increase in ad valorem taxes based on an increased tax roll. The general fund budget includes increases of approximately 5.3% to the Constitutional Officers budgets primarily to fund increases in the Florida Retirement System rates, compensation increases and health insurance increases. County Commission agencies, as a whole, are also increasing by approximately 5.3% to maintain service levels and in a few high priority areas, improve service. Major Special Purpose Funds The FY15 budget includes 43 special purpose and special revenue funds. The following major funds comprise approximately 85 percent of the total of all special purpose funds. Environmental Licensing and Building Permitting Special Purpose Fund (FY15 Budget - $8,678,290) A major portion of the Environmental Licensing and Building Permitting Division budget is dedicated to building code services. It is primarily funded by permit fees, plan review fees, and payment for services provided to Cities and other government agencies under contract. All of the programs are mandated by law or are essential in ensuring the safety of the built environment. The Building Code Services budget increases by approximately $1.7 million in FY15 primarily due to increases in revenues and fund balance resulting from increased new construction activity and airport expansion projects. 17 Broward County, Florida Fiscal Year 2015

23 Environmental Licensing and Building Permitting - Licensing, Elevator and Regulatory Fund (FY14 Budget - $6,765,580) This portion of the Environmental Licensing and Building Permitting Division budget is dedicated to licensing and regulation of certain industries such as construction contractors, elevator inspections, auto repairs, motor carriers, taxi cabs, limousines, kosher food vendors, and movers. It is primarily funded by license fees. The FY15 budget decreases by approximately $.24 million primarily due to a decrease in fund balance. Transit Operating Funds (FY15 Budget - $135,910,350) The overall FY15 Transit operating budget increases approximately $3.8 million compared to the adopted FY14 budget primarily due to $2.4 million in additional funding to address overcrowding and improve on-time performance on Routes 1, 2, 10, 34 and 36, the addition of an Engineer position to oversee The Wave rail system, additional Cashiers to staff the Transit money rooms, a Grant Analyst to enhance grant compliance and reporting, a Farebox Technician to repair bus fareboxes, and a Financial Analyst to enhance Transit s financial reporting and analysis. Federal and State Grants (FY15 Budget - $54,568,400) The federal and state grant fund is comprised of the County's most significant recurring grants. In FY15, these appropriations increased over the FY14 revised budget by approximately $2 million primarily due to the receipt of $1.75 million in State House Initiatives Partnership (SHIP) funding. Greater Fort Lauderdale Convention & Visitor's Bureau (FY15 Budget - $26,485,220) The approximate $2.5 million increase in the Bureau s budget is primarily attributable to an increase in the budgeted revenues enabling an increase in funding for marketing, advertising, and promotional activities including an enhanced summer campaign. Convention Center (FY15 Budget- $16,670,230) The Convention Center s operating budget increases approximately $2.5 million primarily due to an increase in the budgeted fund balance which will be transferred to the Convention Center capital fund for one-time capital projects. Homeless Services Fund (FY15 Budget - $10,367,880) The Homeless Services Fund is supported in whole by a transfer from the General Fund. The FY15 appropriation remains relatively steady as compared to FY14. Broward County, Florida Fiscal Year

24 E-911 Fund (FY15 - $25,460,240) The E-911 fund is supported with service fees charged on telephone and cellular bills to fund a portion of the costs of the E-911 system, including E-911 operations and call taker services for the County and two municipalities. These surcharges are expected to realize approximately $8.3 million in revenue for FY15, which is a decrease of $0.2 million due to legislative changes. The FY15 appropriations are decreasing approximately $1.24 million due to a decrease in revenues and reserves. Sheriff - Fire Rescue Fund (FY15 Budget- $99,894,300) This fund reflects the resources associated with providing municipal level fire rescue services by BSO. The fund is primarily supported with contract revenues from the cities of Weston, Dania Beach, Cooper City, Pembroke Park, West Park, Deerfield Beach, the Aviation Department and Port Everglades Department. Unincorporated area taxes and assessments fund services in the remaining unincorporated areas. The budget increases by approximately $3.43 million in FY15 primarily due to the increase in Florida Retirement System rates, compensation increases, and health insurance rate increases. Sheriff Law Enforcement Contract Services Fund (FY15 Budget- $193,113,090) This fund reflects the resources associated with providing contractual law enforcement services by the Broward Sheriff s Office to numerous municipalities and County agencies. The budgeted appropriations for the fund represent an increase of approximately $4.14 million compared to FY14. The increase in FY15 is primarily due to the increase in Florida Retirement System rates and compensation increases and health insurance rate increases. Judicial Technology Fund (FY15 Budget- $4,752,930) This state required fund is supported with recording fees and provides funds for technology expenses for the 17 th Judicial Circuit, the Public Defender, State Attorney and Guardian ad Litem. The budget is decreasing by $1.4 million, primarily due to a decrease in fund balance. This decrease is offset by a reduction in reserves and a transfer from the general fund of $261,700. Enterprise Operating Funds 19 Broward County, Florida Fiscal Year 2015

25 The FY15 budget includes four major enterprise operations. All four of these operations are entirely self-supported through their business activities and are briefly summarized below: Aviation (FY15 Budget - $221,284,520) The Aviation Department's operating budget decreases by $9.6 million in FY15. The primary changes in the Aviation budget include the following: a $.6 million net increase in personal services costs due to annualizing 16 positions approved in October, 2013, to support and maintain the in-line baggage system in Terminal 2 and to provide additional support for information system functions; and a decrease of 3 vacant positions in the FY15 budget process; $.8 million increase in utilities costs relating to the new tunnel operations in conjunction with the new expanded runway; $2.8 million in increased contractual costs relating to fire and police services; and a net decrease of $18.2 million in budgeted reserves primarily due to reduced fund balance and a change in the programming of the capital budget to budget projects entirely in the first year. Water and Wastewater (FY15 Budget - $95,353,290) The FY15 operating budget increases $3.3 million primarily due to an increase in operating expenses associated with the procurement of potable water and the disposal of sludge. Retail rates for water and sewer customers increases 3%, wholesale fees paid by other utilities increases 7.9%, and the rate paid by utilities receiving regional raw water services increases 8.7% based on the large user agreements with the participating utilities. Resource Recovery Fund (FY15 Budget - $56,463,660) This fund includes reserves for closure and post closure landfill costs. The budget increases by approximately $5.23 million due to an increase in fund balance. Solid Waste Fund (FY15 Budget - $23,841,060) This fund includes costs for the bulk waste and yard waste program, disposal contracts, household hazardous waste and electronics recycling collection, landfill operations, recycling, and solid waste property management. The fund also includes reserves for the Davie Landfill closure, future demolition of the South Plant, and reserves for solid waste and recycling programs. The FY15 budget decreases by approximately $1.2 million compared to the adopted FY14 budget primarily due a reduction in fund balance. Port Everglades (FY15 Budget - $97,615,910) Broward County, Florida Fiscal Year

26 The Port Everglades operating budget decreases by $10.7 million in FY15. Significant changes in the Port s operating budget include a $11.7 million decrease in reserves due to increased capital project expenditures; a $.272 million increase in operating expenses due to an increase in the equipment maintenance budget; and a $.166 million supplement in personal services due to an upgrade of two part-time positions in the Business Development section, the creation of a full time position in Port Administration, and four seasonal positions created in Port Operations. Unincorporated Area Operating Funds The Broward County Board of County Commissioners provides municipal services to the residents of the unincorporated area. The unincorporated population fluctuated until the late 1990s when annexations resulted in a significant decrease in population as many neighborhoods joined surrounding Cities: Unincorporated Population Population in Thousands Providing services to the unincorporated area is challenging due to the fact that the service area is primarily three small pockets" as shown on the following map: 21 Broward County, Florida Fiscal Year 2015

27 The following municipal level services are provided to unincorporated area residents: Law Enforcement The Broward County Sheriff Law Enforcement Department provides police protection to unincorporated area residents. Per a court ruling (Minnet decision) in 1977, road patrol and related services are funded by countywide general revenues. Fire Rescue Broward Sheriff s Office Fire Rescue Department provides service to the unincorporated area either directly or through contracts with cities. Fire Rescue services in the unincorporated areas are primarily funded with a property tax and special assessment levied by the Fire Rescue Municipal Services Taxing Unit (MSTU). The special assessment for residential properties remains at $190 for FY15 and the property tax rate of $ per thousand dollars of taxable value is the same as FY14. Broward County, Florida Fiscal Year

28 Garbage Collection Services include private garbage haulers who provide garbage, trash and recycling collection and disposal. The proposed special assessment fee of $270 per housing unit is the same as the FY14 rate. The special assessment is paid by all single family homes and multi-family complexes with nine units or less. Water/Wastewater Potable water and wastewater treatment is provided to both unincorporated and incorporated areas within the County s utility service area. Residents are charged based on their consumption. The retail water and sewer service rates for residential customers increases 3% in FY15. Other Municipal Level Services Services such as neighborhood parks, school guards, and code and zoning enforcement are also funded by the Municipal Service District fund. This fund is supported by fees, utility taxes, and a property tax that is levied only in the unincorporated area. The property tax rate for FY15 remains at This rate will provide $47,470 more in property taxes than in FY14 based on increased tax roll. The following charts depict the changes in unincorporated area property tax and special assessment rates in FY15 based on the change in the average taxable value for a single-family home. Properties with a Save Our Homes differential can experience up to a 1.5% increase in their assessed value for FY15. Homestead Property with Save Our Homes Differential FY14 FY15 Difference Fire Rescue Assessment $190 $ Fire Rescue Tax* $129 $132 $3 Garbage Assessment $270 $ Unincorporated Property Tax* $115 $117 $2 Street Lighting Property Tax* $18 $19 $1 Total $722 $728 $6 * Based on an average taxable value for an unincorporated area single family home of $49,100 for FY14 and $50,200 for FY Broward County, Florida Fiscal Year 2015

29 Single-family properties without a homestead exemption may experience an increase or decrease in taxable value. The next example is a single-family property that increases the same percent increase as the average single family property: Single-Family Properties Without a Homestead Exemption (based on the percent change in the average taxable value for all single-family homes) FY14 FY15 Difference Fire Rescue Assessment $190 $ Fire Rescue Tax* $129 $139 $10 Garbage Assessment $270 $ Unincorporated Property Tax* $115 $124 $9 Street Lighting Property Tax* $18 $20 $2 Total $722 $743 $21 * Based on an average taxable value for an unincorporated area single family home of $49,100 for FY14 and $53,200 for FY15. Broward County, Florida Fiscal Year

30 CAPITAL OUTLAY BUDGET (FY15 Budget - $808,292,230) The Commission adopts a five year Debt Service 19% capital program along with the operating, capital and debt service budgets prior to the beginning of the new fiscal year. The capital program includes Capital Operating all planned appropriations for the construction, 19% 62% acquisition or improvement of public facilities and infrastructure over the next five years including Roads, Traffic Engineering, Libraries, Parks, Judicial and Public Safety, Corrections, Communications Technology, General Government, Environmental, Information Systems, Unincorporated Improvements, Aviation, Water and Wastewater, Port Everglades, Transit, Beach Renourishment, Housing and Community Development. The following overview concentrates on the capital budget, which is the first year of the five year capital program. The capital budget includes only the funding allocated in FY15. The FY15 capital budget of $808.3 million decreases approximately $64.7 million from FY14 primarily due to a $241 million decrease in the Aviation capital budget due to the one-time nature of budgeting additional funding for the terminal modernization project in FY14, a $63 million increase in the Port Capital budget to fund the Southport Turning Notch expansion and the Southport Gantry Cranes, a $68 million increase in the Water and Wastewater Capital budget to fund the North Regional Wastewater Treatment Plant capacity improvement projects and facilities improvement projects, and a $40 million increase in the General Capital budget primarily due to an increase in fund balance to fund projects over a five year period and due to budgeting reimbursements for the ERP project from other county funds. Details on significant capital budget increases and decreases are provided in the following sections: Capital Outlay Funds Transportation Projects Including County Transportation Trust Capital Funds and Transportation Concurrency Fund - (FY15 Budget $146,114,710) The transportation capital budget decreases by $6 million from the previous fiscal year due a net decrease in the reserves and transfers projected for FY15. The FY15 capital budget provides funding for five major road improvement projects, ongoing installation of mast arms for traffic signals currently on span wire, repairs to school zones, repairs to street lighting infrastructure, and for the continuing maintenance and improvement of the County s road network, communication system network for traffic signals, roadway drainage systems, and rights of way. Of the $ Broward County, Florida Fiscal Year 2015

31 million gross transportation capital budget, $40 million is allocated for capital projects and project support with the remainder of funds transferred to support Transit operations ($60m), and reserves for committed projects in the later years of the five year program ($46m). General Capital Projects (FY15 Budget - $98,327,150) The general construction budget increases by approximately $40 million primarily due to a net increase in the fund balance to support projects budgeted in the later years of the five year program and due to budgeting reimbursements for the ERP project from other county funds. The FY15 reserve will be spent-down by FY18 and will no longer be available to offset the reductions in property taxes allocated for capital projects. The FY15 property tax allocation has increased $6 million from FY14, but is still substantially lower than FY06. The budget focuses on repairs and improvements to maintain the County s investments in libraries, parks, general government facilities, jails, and courthouse facilities. The budget also continues the County s commitment to maintaining the County s technology infrastructure, including Public Safety Communication Technology and the Enterprise Resource Planning project, and includes recurring funding for implementation of the County s Integrated Water Resource Plan. This year's general capital budget is primarily supported with ad valorem taxes and fund balances including the remaining balance from the park bond issue, transfers from other funds and interest earnings. Unincorporated Capital (FY15 Budget - $9,225,100) The FY15 Unincorporated Area Capital budget decreased by $.28 million due to a decrease in projected capital needs. The FY15 budget includes facilities improvements at local parks and neighborhood improvements at Broadview Estates, Hillsboro Pines, and Twin Lakes South. These projects increase the quality of life for the residents and increase the economic viability of the neighborhoods. Enterprise Capital Funds These capital budgets, including Aviation, Port Everglades, and Water and Wastewater, comprise nearly 56% of FY15 budgets for all capital funds. These programs are entirely self-supporting through fees, bonds, and grants and are not supported with property taxes or general revenues. Aviation (FY15 Budget - $129,915,950) This capital budget decreases by approximately $241 million in FY15 primarily due to the onetime nature of budgeting the Terminal modernizations and Concourse A at the Fort Lauderdale- Hollywood International Airport (FLL) in FY14. Major airport projects planned for FY15 include rehabilitation of the North Airfield at FLL ($27.9 million), Terminal 4 Federal Inspection Service facility enhancements ($25 million) and Terminal roadway improvements ($10 million). The Aviation capital budget is supported with Aviation fees and charges, fund balances carried over from prior fiscal years, bond financing and grants. Broward County, Florida Fiscal Year

32 Port Everglades (FY15 Budget - $179,847,590) This capital budget increases $63 million from FY14. In addition to significant funding for maintenance and improvement of Port facilities and infrastructure, the budget includes funding for Slip 2 Westward lengthening ($15.8 million), Southport Turning Notch extension ($39 million) and bulkhead improvements at Slip 1 ($17.5 million). The Port capital budget is supported primarily with fund balances and port operating revenues. Water and Wastewater (FY15 Budget - $142,412,090) The FY15 capital budget increases approximately $68 million from FY14. The budget continues to fund the maintenance and rehabilitation of existing water and sewer systems throughout the utility service area. Significant funding is provided for capacity improvements to the North Regional Wastewater Treatment Plant. A new project for FY15 is designed to use reclaimed water main piping to supply water for irrigation and assist the County in meeting state-mandated beneficial reuse targets. The County continues its commitment to improve utility infrastructure in the unincorporated areas with a $6.7 million project in the Hillsboro Pines neighborhood. Water and Wastewater projects are primarily funded with utility user fees, available fund balance, and bonds to be repaid from user fees. Other Capital Funds Community Development (FY15 Budget - $6,357,880) The community development capital budget increases $1.79 million primarily due to $1.75 million in restored State Housing Initiatives Partnership (SHIP) funding from the State. FY15 funding is allocated to improve the infrastructure and housing in targeted areas with low and moderate income populations. Major projects include housing rehabilitation (both rental and single family units), construction of new housing, infrastructure improvements, and public service projects. SHIP funds are also allocated for water/sewer connection assistance and Special Needs/Barrier Free Housing. Beach Renourishment (FY15 Budget - $18,520,330) The FY15 Beach Renourishment capital budget increases $.22 million primarily due to a new Sand Dune Pilot Project and an increase in fund balance. The sources of funding for the FY15 budget are tourist taxes, fund balance and a state grant for the Segment II renourishment project. The beach renourishment program is an ongoing effort to mitigate the natural erosion of beaches to protect residential and commercial beachfront property, as well as maintain the vitality of the county s tourism industry. 27 Broward County, Florida Fiscal Year 2015

33 Transit Capital (FY15 Budget - $24,272,730) The FY15 transit capital budget continues to emphasize purchases of new buses and expanding the service life of currently owned buses. Implementation of the Computer Aided Dispatching (CAD)/Auto Vehicle Locating (AVL) System is also funded. This system will enable riders to easily find out when the next bus will arrive at their stop via their smartphone or other Wi-Fi enabled device. The FY15 budget also includes funding for facility upgrades and improvements; bus stop infrastructure and pedestrian improvements; and funding for capital maintenance of hardware and software systems budgeted in prior years. The transit capital program is funded primarily with Federal grants and concurrency fees. Court Facilities Fee Fund (FY15 Budget- $7,831,800) The Court Facility Fee Fund budget decreases approximately $.34 million for FY15. This fund includes facilities operations for court-related agencies, capital maintenance projects, and a portion of the funding for debt service on the Courthouse Bonds. The most significant FY15 projects are the security enhancements at the Main Courthouse, replacement of the A/C damper at the North Tower mechanical room, and replacement of the generator at the South Regional Courthouse. Convention Center Capital Projects (FY15 Budget - $21,304,310) The FY15 Convention Center capital budget includes funds to maintain and improve the existing Convention Center Facility. In FY15, $2 million is budgeted for the Convention Center Hotel/Expansion master planning and pre-development, and $13.3 million is reserved for the debt service and other costs associated with this project. $1 million is provided for the Capital Challenge Grant Program that is funded with tourist taxes. The budget also includes the final year of funding ($2 million) for the County s $12 million share of the Performing Arts Center renovation project. Broward Boating Improvement Program (FY15 Budget - $3,395,400) The FY15 Broward Boating Improvement Program budget includes funding for improvements to the Pompano Beach Alsdorf Park ($440,320), renovations to Secret Woods boat dock ($413,000), renovations to the Villages of Hillsboro Park boat ramp ($50,000) and reserves for Everglades Holiday Park boat ramp ($1.5 million). Broward County, Florida Fiscal Year

34 Debt Service 19% Capital 19% Operating 62% DEBT SERVICE BUDGET (FY15 Budget $773,653,030) The debt service budget represents the County's longterm obligations to pay for capital improvements funded through bonds, loans, and other financing instruments. By borrowing funds for these projects, existing and future residents and businesses will bear an equitable share of the debt costs over the useful life of the capital improvements. The debt service budget contains resources needed to pay the principal, interest, and the required debt service reserves for each loan or bond issue. Included in the debt service budget are the following bond issues: Libraries General Obligation Bond Issue Parks/Land Preservation General Obligation Bond Issue 2002 Loan Pool 2005 Loan Pool 2006 Civic Arena Refunding Bonds 2006 Loan Pool 2007 Loan Pool 2010 Courthouse Bonds Aviation Bonds Port Everglades Bonds Water and Wastewater Bonds The total debt service budget for FY15 increases $24.4 million primarily due to the increase in the Aviation debt service reserve for future debt service. In FY14, the 2004 Convention Center Refunding Bonds were retired. The remaining variances in debt service budgets reflect programmed changes in debt service schedules. Details on the debt service budget can be found in the debt service section of the FY15-19 capital program document. 29 Broward County, Florida - Fiscal Year 2015

35 APPENDIX Broward County Demographic Data Consolidated All Funds Summary Millage Summary Ten Year Non-Voted Millage History Changes in Authorized Positions Glossary of Terms Broward County, Florida Fiscal Year

36 BROWARD COUNTY DEMOGRAPHIC INFORMATION General Year Broward County Established 1915 Type of Government Charter, Elective 1975 Commission/Manager Governing Body Area: Board of County Commissioners (nine Members elected from single member districts) Total 1231 square miles Developable 431 square miles Number of Municipalities 31 Population Broward County experienced dramatic population growth between 1970 and 2008; however, over the past several years the population increases have been at a lower rate. As more people move to the area, service demands increase such as in transit. In FY14 and FY15, the County has addressed transit route overcrowding with improvements to the busiest routes. According to the Bureau of Economic and Business Research, the County s population in 2013 was 1,784,715, of which approximately 50 percent lives in the County s seven largest cities. Of Broward s 31 municipalities, the largest are Fort Lauderdale, Pembroke Pines, Hollywood, Miramar, Coral Springs, Pompano Beach, and Davie. The estimated unincorporated area population in 2013 was 14,699 according the State of Florida Office of Economic and Demographic Research. 31 Broward County, Florida Fiscal Year 2015

37 CONSOLIDATED FUND SUMMARY Revised Percent FY14 FY15 Change Budget Budget (14 to 15) County-Wide General $1,022,686,500 $1,068,447,420 4% County Transportation Trust 113,562, ,501,880 (4%) Capital Outlay 183,753, ,703,800 25% Debt Service 96,484,370 97,359,360 1% Total County-wide 1,416,487,360 1,505,012,460 6% Unincorporated Garbage Collection 7,097,660 7,608,840 7% Municipal Service District 8,944,650 10,188,040 14% Street Lighting District 471, ,630 (17%) Special Total Unincorporated $16,514,000 $18,188,510 10% Air Pollution Trust 1,684,500 1,980,260 18% Affordable Housing Capital Projects 328, , % Animal Care Trust 833,090 1,101,250 32% Board of Rules & Appeals 1,930,540 3,002,550 56% Broward Cultural Council 4,555,500 4,906,720 8% Business Licenses Tax Fund 973, ,450 (9%) Community Partnerships/ Pay Telephone Trust Fund 1,928,090 1,928,090 0 Convention Center 14,179,270 16,670,230 18% Court Cost Fund 3,283,000 2,728,500 (17%) Court Facilities Fee Fund 8,167,300 7,831,800 (4%) Driver Education Safety Trust 950, ,000 0% EP & GM/Planning and Redevelopment Contracts 504, ,550 3% EP & GM/Environmental Planning & Community Resilience Contracts 1,592,890 1,588,680 0% EP & GM/Pollution Prevention Contracts 1,191,460 1,298,450 9% Environmental Licensing & Building Permitting/Special Purpose Fund 6,943,400 8,678,290 25% Federal & State Grants 52,603,280 54,568,400 4% Broward County, Florida Fiscal Year