City of Coral Springs Fiscal Year 2007 Budget Public Hearing. September 13, 2006

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1 City of Coral Springs Fiscal Year 2007 Budget Public Hearing September 13, 2006

2 Your Taxes at Work FY 2007 South Florida Water Management District 3% City of Coral Springs 19% Broward County 30% School Board of Broward County 37% Other 2% Hospital District 9% 2

3 Proposed FY 2007 Operating Millage Rate Comparison $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ Hollywood Miramar Sunrise Deerfield Beach Davie Ft Lauderdale Pembroke Pines Plantation Pompano Beach Coral Springs Broward cities with populations of 70,000 or greater. 3

4 Proposed FY 2007 Combined Millage Rate Comparison $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ Hollywood Miramar Deerfield Beach Sunrise Davie Ft Lauderdale Pembroke Pines Plantation Pompano Beach Coral Springs Available rates for Broward cities with populations of 70,000 or greater. 4

5 Our Tax Rate is Already the Lowest of Broward Cities with over 70,000 Population 2006 taxes for homesteaded today s tax value: Hollywood $1,808 Miramar $1,545 Deerfield Beach $1,518 Sunrise $1,394 Fort Lauderdale $1,212 Davie $1,184 Pembroke Pines $1,179 Pompano Beach $1,067 Plantation $ 960 Coral Springs $ 838 Source: Sun-Sentinel 5

6 AAA Ratings Recently Re-Confirmed Fitch: Coral Springs superior AAA credit rating reflects the city s strong financial performance and maintenance of healthy financial flexibility enhanced by prudent management policies. The city s strong financial position is enhanced by its excellent financial management and planning. The City has historically used excess reserves prudently, including defeasing some of its most expensive debt and cash funding capital projects. 6

7 Savings from the Financial Strategy General Fund Water & Sewer Funds Other Funds Total Debt Refunding & Retirements Prior Years $1,122,000 $459,000 $1,581,000 Debt Defeasance Prior Years 2,693,000 $2,693,000 Cost Avoidance Measures Variable Rate Prior Years 798,000 $798,000 FY ,000 $368,000 Equity Financing Prior Years 1,940, ,000 $2,281,000 FY ,000 $310,000 Water & Sewer ,500 $142,500 Pay as you go Prior Years 606,500 $606,500 FY ,000 $139,000 Total Savings $7,231,000 $601,500 $1,086,500 $8,919,000 7

8 Proposed FY 2007 Operating Millage Rate Comparison $ $ $ $ $ $ $ Coral Springs without our Financial Strategy $ $4.9566$4.8715$ $ $ $ $ $ $ $ Hollywood Miramar Sunrise Deerfield Beach Davie Ft Lauderdale What if... Pembroke Pines Plantation Pompano Beach Coral Springs Broward cities with populations of 70,000 or greater. 8

9 Debt Service Millage Rate Trend Since 2003, debt service millage rate has decreased 59% $ $ $ % Decrease Mills $ $ $ $ New Bond Existing debt 0 FY 2003 FY 2004 FY 2005 FY 2006 FY

10 AAA Ratings Recently Re-Confirmed S&P: The financial performance and management of the city continues to be strong. Conservative fiscal policies have led to continual strengthening of the city s financial position. The AAA rating reflects the City s strong fiscal & debt oversight, which is echoed through solid financial & debt policies, some of which have been in place for more than a decade. 10

11 Where Are the General Fund Increases Going? GF increased by $8.1 M or 9.6% Replenishing Emergency Reserves $2.0M Pension increases $ 0.5 Gas & electric increases $1.0 Health Care $ 0.7 Insurance increases $ 0.4 Interest Rate increases $ 0.7 Service level increases (PD, FD, Bldg) $1.0 Subsidy of Fire Assessment Fees $ 0.5 Normal increases (salaries, etc.) $1.3 11

12 Effects of Hurricane Wilma Total cost of clean-up & repairs was $36 M Expect FEMA, State & insurance to fund $24 M Depleted our reserves by $9 M Must be replenished within 3-5 years Must maintain readiness for another emergency 12

13 Full-Time Employees Per 1,000 Population Fiscal Year Ft. Lauderdale Hollywood Sunrise Plantation Miramar Pembroke Pines Davie Deerfield Beach Pompano Beach Coral Springs

14 Proposed FY 2007 Fire Assessment Comparison $140 $120 $100 $80 $60 $ $ $ $97.50 $94.00 $91.62 For Single Family Homes $75.00 $74.98 $65.00 $40 $20 $0 Hollywood Miramar Davie Sunrise Ft Lauderdale Coral Springs Pompano Beach Pembroke Pines Deerfield Beach Available rates for Broward cities with populations of 70,000 or greater 14

15 Proposed FY 2007 Solid Waste Cost Comparison $400 $350 $ $ $300 $250 $ $ $ $200 $150 $100 $50 $0 15 Bulk 6 times/year In house, Transfer station In house and contracted, Bulk 12 times/year, Transfer station Included in water bill, Bulk 6 times/year Included in water bill Side door service, Unlimited bulk, Transfer station Hollywood Ft Lauderdale Sunrise Miramar Coral Springs Davie Available rates for Broward cities with populations of 70,000 or greater

16 AAA Ratings Recently Re-Confirmed Moody s: The Aaa rating is based on healthy continued growth in the City s mature tax base, sound financial management practices reflected in historically strong financial operations and solid reserve levels, and manageable debt position. The rating also incorporates Moody s expectation that management's plan to maintain reserve levels dictated by financial policies will be successful despite significant unanticipated hurricane expenditures. 16

17 Effect On The Average Homeowner No increase in operating millage 15% decrease in debt millage $8.00 increase in single-family fire fee $1,200 $1,100 $1,000 $900 $800 $700 $600 $500 $400 $300 $200 $100 $0 $ Operating Debt Fire $83.62 $91.62 $45.11 $38.35 $ $ $ $ $91.62 $39.66 $ FY 2006 FY 2007 FY 2007 Average Coral Springs home Save Our Homes Value $204,714 Net Tax = $6.76 Decrease Fire Fee = $8.00 Increase Assuming No Increase In Assessed Value Net Tax = $18.33 Increase Fire Fee = $8.00 Increase Assuming a 3.0% Increase In Assessed Value $210,855 17

18 Discount Taxes are due in March Up to 4% discount if paid by November 30th 18

19 Spare Slides

20 Your Tax Value Already low tax rate = already lean budget A decrease of $67.48 for the average homeowner (plus debt millage decrease) from FY 2006 Pays for more resources & improved services 20

21 The 3 Columns on Your TRIM Notice Your Property Taxes Last Year Your Taxes This Year if Budget Change is Made : City s budget proposal No increase operating millage rate Decrease in debt Average increase of 2.5% (operating and debt) for City taxes if homesteaded Your Taxes if No Budget Change is Made : Uses State defined rolled-back rate 12% DECREASE (City s combined operating and debt millage rates) if homesteaded 21

22 Are My City Taxes Going Up By 15%? If homestead exemption: then they ll increase by average of 2.5% (because of proposed decrease in City s debt millage and SOH cap) If no homestead exemption: then increase by slightly less than the increase in your property value. Note: The lower the assessed value, the higher the higher the percentage change. 22

23 Effect On The Average Homeowner assuming 3% increase in assessed taxable value FY 2006 FY 2007 Current Rate FY 2007 Rolled-back Rate Average Home Value (SOH) $204,714 $210,855 $210,855 Operating Millage $ $ $ Debt Millage $45.11 $39.66 $39.66 Fire Assessment $83.62 $91.62 $91.62 Total $ $ $ $26.33 more than last year Would be $91.26 savings 23

24 About the Rolled-back Rate The tax rate that would provide the same amount of ad valorem revenue (excluding new construction) as last year 24

25 General Fund Key Drivers Personal Services Hurricane Wilma Reserves Gasoline & Electricity Health care Interest Rates Retirement Property & Casualty Insurance New Positions Gov t & Nonprofit Fire Assess. Total $ increase over 2006 $2.0M $1.6M $1.0M $720K $708K $500K $440K $300K $233K $7.5M % increase over % n/a 30% 12% 47% 8% 58% 0.7% 41% 25

26 Tax Comparison per Sun-Sentinel $2,000 $1, Taxes at today's value $1,500 $1,250 $1,000 $750 $ taxes for same house owned by same family 2001 taxes on $150K house with homestead exemption $250 $0 Hollywood Miramar Tamarac Deerfield Beach Ft Lauderdale Pembroke Pines Plantation Pompano Beach Coral Springs 26

27 Effect On The Average Homeowner No increase in operating millage 15% decrease in debt millage $8.00 increase in single-family fire fee $1,200 $1,100 $1,000 $900 $800 $700 $600 $500 $400 $300 $200 $100 $0 $ $83.62 $91.62 $45.11 $39.66 $ Operating Debt Fire $ $ $91.62 $39.66 $ FY 2006 FY 2007 FY 2007 Average Coral Springs home Save Our Homes Value $204,714 Net Tax = $18.33 Increase Fire Fee = $8.00 Increase Assuming a 3.0% Increase In Assessed Value $210,855 $ Net Tax = $72.93 Decrease Fire Fee = $8.00 Increase Rolled-back rate Assuming a 3.0% Increase In Assessed Value $210,855 27

28 Proposed FY 2007 Solid Waste Assessment Comparison $400 $350 $ $ $300 $250 $200 $150 $100 $50 $0 $ $ $ $ In house, Transfer station In house and contracted, Bulk 12 times/year, Transfer station Collected by Utilities, Bulk 6 times/year Side door service, Unlimited bulk, Transfer station Bulk 6 times/year Hollywood Ft Lauderdale Sunrise Miramar Coral Springs Davie Available rates for Broward cities with populations of 70,000 or greater

29 Increase in Ad Valorem Revenues 29

30 Why Can t the City Decrease Taxes This year, we added 22 Firefighters and 2 Police Officers We are paying $1.7 M more for electricity to operate street lights, etc gasoline for patrol cars and fire trucks health care for employees We are subsidizing the Fire Fund by $0.5 M to keep Fire Fees from increasing more than $8 per single family home We are replenishing our depleted reserves after paying $10-12 million in City money alone to recover from Hurricane Wilma 30

31 Our total General Fund budget increased 9.6% Ad Valorem revenues increased by 15.3% All other revenues increased by 6.4% 31

32 Proposed FY 2007 Debt Millage Rate Comparison $ $ $ $ $ $ $ $ $ $ $ $ Davie Deerfield Beach $ $ $ $ $ $ $ $ $ Ft Lauderdale Pembroke Pines Hollywood Coral Springs Pompano Beach Miramar Plantation Sunrise Available rates for Broward cities with populations of 70,000 or greater. 32

33 Your Taxes at Work FY 2006 South Florida Water Management District 3% City of Coral Springs 19% Broward County 30% School Board of Broward County 36% Hospital District 10% Other 2% 33

34 Percent Change of Total Taxable Value From Preceding Year 14% 14.6% 12% 10% 8% 6% 4% 2% 0% 9.2% 7.2% 7.1% 6.0% 5.6% 3.5% 4.3% 3.3% 4.1% 3.2% 2.7% 3.1% 2.4% 1.7% 1.2% 1.9% 0.0% 5.1% 3.5% 3.1% 4.7% 3.5% 3.3% 4.1% 3.0% 10.9% 9.1% 8.5% 7.3% 5.5% 3.5% 2.9% 2.8% 1.6% 1.4% 1.3% -2% -4% -4.1% Existing % New % -6% FY 1989 FY 1990 FY 1991 FY 1992 FY 1993 FY 1994 FY 1995 FY 1996 FY 1997 FY 1998 FY 1999 FY 2000 FY 2001 FY 2002 FY 2003 FY 2004 FY 2005 FY 2006 FY

35 About the Rolled-back Rate $ to $ Equals $4,424,013 reduction in tax revenues 35

36 Our Tax Rate is Already the Lowest of Major Cities in Broward See Sun-Sentinel article of 8/ /06 36

37 Our Tax Rate is Already the Lowest of Major Cities in Broward 2006 taxes for homesteaded home owned since 2001: Davie $733 Fort Lauderdale $712 Hollywood $994 Miramar $947 Pembroke Pines $771 Plantation $659 Pompano Beach $583 Tamarac $894 Coral Springs $556 Source: Sun-Sentinel 37

38 What Does TRIM Notice Say? Your Property Taxes Last Year Your Taxes This Year if Budget Change is Made : Max of 3% increase in assessed value over last year if homesteaded property! Your Taxes if No Budget Change (Rolled-back Rate) is Made : 12% DECREASE (City s combined operating and debt millage rates) 38