Fiscal Year 2016 City of Deerfield Beach, Florida Budget In Brief Bold Innovation for a Better Future
Table of Contents Introduction 3 Budget Process 5 Citywide Revenues & Expenditures 6 Fund Structure Overview 7 Fund Sources 8 Fund Appropriation 9 Total General Fund 10-11 Ad Valorem 12 Property Tax Dollar Breakdown 13 Property Tax 14 Millage Rate 15 15 Capital Improvement 16 Fund Summary 17 Funding Source 18 Projects 19 Public Safety 20 Crime Statistics 21 Public Safety cost 22 Fire Fees 23 Statistics 24 Conclusion 25
Introduction The City of Deerfield Beach s City Commission adopted its fiscal year 2016 budget on September 21, 2015. The purpose of this Budget-in-Brief is to provide a concise, easy to use document that provides a short synopsis of the City s Approved Budget along with summarizing and highlighting key budget features, major City goals and basic budget facts. This guide outlines our City s short-term future and is designed to give taxpayers an overview of services the city provides, along with our plan to fund those services. Presently We have reinvented our local government by adopting sound financial policies meanwhile enduring many diffculties and challenges since 2010; in addition, revenues continue to show encouraging signs of growth after the past economic recession. Recent market data indicates that housing sales and values are rebounding and retail sales have been improving over the past several years. The FY16 budget has been balanced with a decrease in the property tax rate; it does not compromise service quality or scope but in turn alleviates the tax burden for the homeowner. Furthermore, unemployment is below 6% nationwide and is less than 5% within the city limits. In recent years there has been increasing evidence to suggest that the economy is, in fact, healing. We are confident that our stable fund balance will continue to grow due to the above economic activities along with planned residential and business development/redevelopment. We hope all stakeholders find this bulletin informative. www.deerfield-beach.com 3
At a Glance
Budget Process Budget Kick-off February Gathering of departments to provide information and training sessions that define uniform standards, role definitions, preliminary strategic planning, deliverables, project goals, along with definitive due dates. Departmental Requests March through May The department heads begin assembling their budget requests and performance measures. The City Manager holds individual departmental budget meetings throughout the month of May and conducts hearings to review departmental budget proposals, other policy changes, and alternative funding options. Budget Workshops June Budget workshops are conducted during the month of June. These workshops are open to the general public. City Commission has first reading of rate resolution for proposed fire assessment fee. Development July The Budget Offce s predominant purpose is to assist in overseeing the preparation of the city s budget and to supervise its administration and to formulate the document. Each budget must consist of several parts: the expense budget, which sets forth proposed appropriations for the operating expenditures for municipal services including debt service; the capital proposed appropriations for capital projects; and the revenue budget, which estimates revenues and receipts of the city. Proposed Budget August Throughout this time the production of a balanced budget and the City Manager s proposal is then assembled and presented to the City Commission. Property appraiser prepares and mails each taxpayer a Notice of Proposed Property Taxes. City Commission Budget Adoption September Two public hearings are held for the purpose of presenting to and receiving input from citizens on the tentative budget and proposed millage. At the second hearing, the annual budget is adopted. The City levies a property tax millage rate upon the taxable values of real and personal property which will provide the revenue required for the fiscal year beginning October 1 of each year. www.deerfield-beach.com 5
Citywide Operating Revenues & Expenditures Non-operating expenditures 4% Debt service 6% Personal services 23% Total Budgeted Revenues $165,633,911 Capital outlay 3% Fines & forfeitures 1% Interfund transfers 5% Cash carryover 2% Miscellaneous 13% Operating expenditures 64% Charges for services 37% Property taxes 21% Total Budgeted Expenditures $165,633,911 Intergovernmental 6% Licenses & permits 2% Local option gas tax 1% Franchise fees 4% Public Service taxes 5% Sales & use taxes 1% Communication services taxes 2%
Fund Structure Overview FY 2015-2016 TOTAL NET BUDGET $170,176,992 Community Redevelopment Agency $4,543,081 Net Operating Budget $165,633,911 Capital I mprovements $10,906,150 General Fund $98,316,166 Enterprise Funds Special Revenue Funds Agency Fund Environmental Services $26,624,371 Senior Services $3,165,196 Risk Management $10,854,781 Water & Sewer Renewal and Replacement $3,445,000 Road and Bridge $2,484,221 Water & Sewer Emergency Reserve $445,000 Community Development Block Grant Fund $1,039,639 Solid Waste Fund $18,759,537 Solid Waste Emergency Reserve $500,000 * Operating + CRA = Total Net Budget www.deerfield-beach.com 7
Fund Revenue Communication services Local option gas tax, 1% Interfund transfers,5% Sales & use taxes, 1% taxes, 2% Franchise fees, 4% Intergovernmental, 6% Fines & forfeitures, 1% Where the Money Comes From Miscellaneous, 13% Property taxes, 21% Public Service taxes, 5% Licenses & permits, 2% Charges for services, 37% Cash carryover, 2% Revenues The Revenue Budget contains an estimate of how much money the city government will take in during the fiscal year. Charges for services refer to basic services that Deerfield Beach residents expect the City to provide in exchange for fees which citizen pay. Basic city services may include sanitation, water, sewer and refuse, streets, police, ambulance, park maintenance and fire. Property taxes account for one the largest and most stable sources of the City s revenue; it accounts for 21% of the Operating Budget.
Fund Appropriation Debt service, 6% Capital outlay, 3% Non-operating expenditures, 4% Where the Money Goes Personal services, 23% Operating expenditures, 64% Expenditures Expense budgets fund current city government services; including the salaries of government employees, pensions, debt service, routine operating expenses such as offce supplies, printing services, contracts, rent and utilities. Its a legally binding commitment to a level of appropriations for a particular fiscal year. It is the Expense Budget that individuals generally think of as the city budget. Many funds, like Road and Bridge, Water, Sewer and Solid Waste have dedicated resources which can only be expended on these programs. Reserves may be higher in these funds due to saving for future large capital projects, i.e., renewal and replacement and capacity expansion. www.deerfield-beach.com 9
Total General Fund - $98,316,166 Economic Environment : Primarily reflects expenditures by the Community Development and Economic Development departments to enhance the quality of life for residents along with business attraction and retention. Culture & Recreation: Expenditures that provide facilities for passive (natural park areas), active (ballparks) recreational opportunities and all the expenses associated with services that enhance the culture of the community and special events. Physical Environment: Expenditures for the public works are those related to the design, construction, maintenance, and operation of public facilities and infrastructure within the City. Transfers & Reserves: Movement of resources from one fund to another and fund balance amounts set aside to provide for expenditures from the unencumbered balance for continuing appropriations and economic uncertainties. Police BSO $22,514 Publi $58 Pier $378 Cemetery $436 Summer Camp $649 Culture & Recreation $6,997 Recreation Zones $2,836 Debt Service $5,063 Economic Environment $567 Special Services $2,462 Administration $1,132 Ocean Rescue $ 1,566 Transfers & Reserves $3,894 Physical Environment $6,526
In thousands $98,316 (all other amounts rounded thousands) Building Services $2,590 Public Safety: Expenditures reflect the costs associated with providing police, fire, emergency medical services and marine safety services to residents and visitors. General Government: Expenditures incurred for the administrative offces, i.e., accounting, legal, human resources, that do not relate directly to the production of any goods or services. Safety,529 Fire & Rescue $30,963 Transportation & Human Services $597 Transportation & Human Services: Costs associated with meters, parking and conveyance. Expenditures correlating to providing quality programs and services to promote the social, physical, and psychological well-being of citizens. Debt Service: Principal and interest payments to service outstanding debt. Fleet $1,073 Planning $1,184 City Manager $1,384 Information Technology Services $1,473 Financial Services $1,625 Human Resources $887 City Clerk $493 General Government & Administrative $16,142 Non-departmental $2,379 Central Services $521 Construction & Facilities $4,477 Attorney $411 Commission $235 www.deerfield-beach.com 11
Ad Valorem
Property Tax Breakdown How to Calculate Your City of Deerfield Beach Property Taxes CALCULATION : TAXABLE VALUE OF PROPERTY / 1,000 X MILLAGE RATE = ESTIMATED TAX DUE Taxable Value of Property $250,000.00 $200,000.00 $175,000.00 $125,000.00 Divided by 1,000 250.00 200.00 175.00 125.00 Millage rate 6.6688 6.6688 6.6688 6.6688 Estimated Annual Property Tax $1,667.20 $1,333.76 $1,167.04 $833.60 Monthly Property Tax Bill $138.93 $111.15 $97.25 $69.47 Daily Property Tax Bill $4.63 $3.70 $3.24 $2.32 $3.70 Comparison of Basic Consumer Goods/Services to the Daily Cost of $200,000 taxable Property Bill Sunday Newspaper $2.00 Gallon of Gas (4th Qtr 2015) $2.29 One Adult Movie Ticket $10.00 Gallon of Milk $3.89 Fast Food Meal $6.79 www.deerfield-beach.com 13
Property Tax N. Broward Hospital 1.4425 = 7% S. Florida Water Mgmt. 0.3551 = 2% Other 0.5202 = 2% Broward County 5.7230 = 26% The first notice you receive about your tax bill is the Truth in Millage (TRIM) notice that is sent by the Property Appraiser s Offce to inform you of proposed taxes, it is not a bill. The tax bill is sent after each taxing authority sets their tax rate. Each taxing authority is required to hold two public hearings before they set that rate, at which they welcome responsible comments from taxpayers. Your property tax dollars are split among several different organizations. The three groups that receive the greatest proportion of your property taxes are the City of Deerfield Beach, the School Board and Broward County. City of Deerfield Beach 6.6688 = 30% School Board 7.2740 = 33% Broward County 5.7230 School Board 7.2740 City of Deerfield Beach 6.6688 N. Broward Hospital 1.4425 S. Florida Water Mgmt. 0.3551 *Other 0.5202 -Total Millage Breakdown 21.9836 *Other includes: Children s Services Council, Florida Inland Navigation, and Everglades Construction Project. Each of the above taxing authority sets the tax rate; however the property appraiser sets the Property Value and any of those jurisdictions may raise or lower the tax rate and therefore impact the total tax bill.
Millage Rate Total City Millage Last Ten Fiscal Years 8.0000 7.5000 7.0000 6.7688 6.7688 6.7688 6.6688 6.5000 6.2500 6.0000 5.7900 5.7688 5.7688 5.5000 5.350 5.3000 5.0000 4.5000 4.0000 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 The Florida Constitution reserves all revenue from ad valorem taxes (taxes based on property value) for local governments, which is their largest source of funding. Local property appraisers annually assess each privately owned property in Florida based on market value (not the sale price of the property). Local governments set the millage rate, which is the rate at which properties are taxed. Unfortunately with the decline in home values many homeowners expect their property taxes will decline too. However this is a false expectation based on a misconception on how ad valorem taxes are calculated. Property tax does not work like income or sales taxes which are ratebased. The change in a home s market value alone does not determine the change that it will see in tax liability; it also depends upon what happens to the values of other properties in the taxing districts and the levy decisions. www.deerfield-beach.com 15
Capital Improvement
Fund Summary GOVERNMENTAL FUNDS The General Fund is the chief operating fund of the City and accounts for all financial resources which are not required to be accounted for in another fund. The major sources of revenue in the General Fund are ad valorem taxes, communications services taxes, public service taxes, state shared revenues, fire protection assessments and electric franchise fees. Combined, these six sources generate over 69.4% of this fund s revenues. Fire/rescue and police services comprise the majority of the General Fund expenditures. Senior Services Fund revenues are comprised of federal, state and local grants as well as contributions from the City s General Fund. These grants support programs which provide services to the area s senior citizens, as well as to victims of Alzheimer s disease. A child care program is also funded through the Senior Services Fund. The Community Development Block Grant Fund (CDBG) accounts for federal grant revenues received from the U.S. Department of Housing and Urban Development (HUD). HUD requires that the City develop a "Consolidated Plan" detailing how the funds will be used. Road and Bridge Fund activities are restricted to the maintenance and acquisition of roads and bridges. The primary source of funding for the Road and Bridge Fund are fuel taxes, which are assessed by the State. ENTERPRISE FUNDS The Utility Fund and the Solid Waste Fund are enterprise funds which account for the provision of water and sewer services and solid waste disposal services to the City s residents. These funds operate in a manner similar to business enterprises, where the intent is to recover the costs of providing services through user charges. The Water and Sewer Renewal and Replacement Fund is a sub-fund of the Water and Sewer Enterprise Fund and is used for improvements, extensions, additions, replacements, or other major capital expenditures to the City s water and wastewater distribution system. Funding is provided to the Renewal and Replacement Fund via transfers from the Utility Fund. The Solid Waste Emergency Reserve Fund is a sub-fund of the Solid Waste Enterprise Fund which accounts for moneys to be used for unforeseen, unplanned events. Funding is provided by the Solid Waste Fund. EXPENDABLE TRUST FUND The Insurance Services Trust Fund recognizes the revenues and expenditures associated with providing insurance coverage for all City needs. Approximately 14.6% of the fund s revenues are from insurance reimbursements from private sources. The primary sources of expenditures are for insurance premiums and workers compensation claims. These expenditures account for over 91.8% of this fund s budget. www.deerfield-beach.com 17
Funding Source Capital Improvement FY 15-16 Funding Source $10,906,150 Community Redevelopment Agency Fund $1,500,000 Every year, the City adopts a plan for capital improvements for the next five years; the five year total for the capital budget is $96,066,487. W/S Renewal & Replacement Fund $2,945,000 Capital improvements include fleet replacements, street construction, park improvements, sewers, water infrastructure, etc. The CIP represents a schedule and an estimate of both current and future capital needs- since all projects have the potential to significantly impact the annual operating budget they are produced conjunctively. Utility Operating Fund $1,366,000 General Fund $3,181,150 Capital improvements will include items/projects having a life expectancy of over one year and a cost in excess of $25,000. Solid Waste Fund $1,515,000 Road and Bridge Fund $399,000
Projects Capital Improvement FY 15-16 Projects $10,906,150 Transportation - Fleet $92.000 Transportation Improvements $279,000 Utility - Fleet $635.000 Cultural and Recreation Improvements $2,710,000 Cultural and Recreation - Fleet $183,580 General Government $350,570 Capital projects tend to be costly, so the City often issues bonds to finance these projects. The City uses the cash received from bond sales to pay for capital projects, and repays investors over time at tax exempt interest rates determined by competitive bids received at the time the bonds are issued. Utility Improvements $3,676,000 Solid Waste /Recycling - Fleet $1,515,000 In addition in 2011 the City joined most Florida municipalities in authorizing the levy of a public service tax on water, sewer and electrical consumption which permits a funding mechanism for capital projects as well. Public Safety - Fleet $65,000 Public Safety $1,400,000 www.deerfield-beach.com 19
Public Safety
Crime Stats Crime Statistics $21,000,000 3,400 $20,000,000 $19,000,000 3,300 3,200 3,100 Budget- Police Services $18,000,000 $17,000,000 $16,000,000 $15,000,000 3,000 2,900 2,800 2,700 $14,000,000 $13,000,000 2,600 2,500 2,400 $12,000,000 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Year 2,300 Police Contract Cost Property and Violent Crimes Year - Budget Source: FBI Uniform Crime Reporting Program Police Contract Cost Violent Crimes Property Crimes Property and Violent Crimes 2010 $19,059,203 429 2,509 2,938 2011 $19,506,005 366 2,415 2,781 2012 $19,079,851 360 2,458 2,818 2013 $19,147,761 305 2,386 2,691 2014 $20,300,686 369 2,073 2,442 2015 $20,809,115 not yet determined www.deerfield-beach.com 21
Public Safety Cost 2016 budget $20,444,265 $24,137,628 2015 budget $20,809,115 $23,462,763 2014 actual $20,300,686 $22,506,560 2013 actual $19,147,761 $21,145,592 2012 actual $19,079,851 $20,551,012 $- $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,00 0 Fire Police
Fire Assessment $475.00 $450.00 $425.00 $400.00 $375.00 $350.00 $325.00 $300.00 $275.00 $250.00 $225.00 $200.00 $175.00 $150.00 $125.00 $100.00 $75.00 $50.00 Fire Rescue Fees- Broward Cities Average = $232.18 www.deerfield-beach.com 23
Statistical Information SCHOOL ENROLLMENT; POPULATION: AVERERAGE TEMPERATURE: UNEMPLOYMENT RATE: 7,374 students 76,152 77 degrees Fahrenheit 4.60% DATE OF INCORPORATION: MILES OF SEWERS: FIRE PROTECTION: Date first charter adopted: Storm: 28.62 Sanitary: 136.0 $23,510.00 Number of stations: 6 June 1925 Force Mains: 35.58 Number of employees: 147 AREA: 16.5 SQUARE MILES RECREATION: FORM OF GOVERNMENT: MUNICIPAL WATER : Miles of streets and alleys: Public Beach: 5,700 feet Commission / City Manager Capacity: 34,800,000 gallons / day Paved: 146.6 Municipal pier: 920 feet Date present charter adopted: Numbe of units: 33,140 Sidewalks: 135.0 Number of Parks: 22 1975 Number of meters: 12.305
Conclusion Conclusion Educating and informing Deerfield Beach residents about how your tax dollars are managed and spent is very important to us. Our goal is to give you the information and knowledge you need to understand why your leaders make their financial decisions. With all the information available it is often diffcult to determine what statistics are important and how to analyze the facts. With these initiatives and our commitments to sound fiscal management and reporting standards we hope that you found this report both useful and informative. ~ Budget Offce. Economic Outlook Previous confluence of negative factors: Federal fiscal policy gridlock Consumers cut spending to focus on reducing household debt Tax increases and banks not lending - despite of low interest rates Corporations curtailed investment and hiring Housing Bubble Positive shift to accelerated growth: Consumer confidence and spending increasing; debt decreasing Strengthening employment gains and income Moderate interest rate rise and gradual tapering; support sustainable recovery meanwhile minimizing rate volatility Corporate capital expenditures are rising Continued strength in housing recovery leads the growth transition www.deerfield-beach.com 25
City of Deerfield Beach 150 NE 2nd Avenue, Deerfield Beach Florida 33441 954.480.4200 www.deerfield-beach.com Bold Innovation for a Better Future Prepared by: Melissa Lewis - Budget Manager