FY 2012 Budget Workshop #2

July 27, 2011

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Richard J. LemackTown Administrator

July 27, 2011

Town Council Budget Workshop

Introduction

FY 2012 Budget Outlook

• No Millage Rate Increase (maintain current millage rate)

• No Fire Assessment Increase• No Use of General Fund Undesignated Reserves

(with the exception of CIP)• No Layoffs• No Reduction of Services• Reduced Voted Debt Millage• Reduced Solid Waste Assessment

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Human Resources Department

Davie, Florida

TownCouncil

Residents of the Town of Davie, Florida

Town Administrator

Parks & RecreationDepartment

Fire-Rescue Department

Assistant Town Administrator

Intergovernmental Affairs

Manager

Town Administration

Department

Budget & Finance

Department

Town Attorney

Public Works

Department

Police Department

Legislative AgendaSpecial ProjectsLiaison to CRA

C.I.P CoordinationGrants CoordinationPublic Relations/PIO

Economic Development

Technology Information

ManagementSystems

Department

Community Redevelopment

Agency

Town Clerk

Planning & Zoning

Housing &Community

Development

Special Events & Cultural

Arts

UtilitiesDepartment

Today’s Agenda

• Discuss budget revisions made since the June 14th Budget Workshop

• CIP presentation

• Endowment presentation

• Discuss upcoming meetings5

Town of Davie FY 2012 Budget

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Town of Davie TotalProposed Budget

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Adopted FY 2011 Budget - $191.5 MillionAdopted FY 2011 Budget - $191.5 MillionProposed FY 2012 Budget - $148.8 MillionProposed FY 2012 Budget - $148.8 Million

Decrease of $42.7 million or 23% mainly due to W&S CapitalDecrease of $42.7 million or 23% mainly due to W&S Capital

Projects and CRA reserves appropriationProjects and CRA reserves appropriation

FY 2012 Proposed Budget

Water and Sewer Fund (millions)

FY 2011 FY 2012 Δ

Personal Services $4.0 $3.6 ($.4)

Operating $7.4 $7.9 $.5

Capital Outlay $7.5 $2.5 ($5.0)

Debt Service $1.7 $1.7 $0

Other Uses $3.5 $5.2 $1.7

Total $24.1 $20.9 ($3.2)8

General Fund

FY 2012Proposed

Budget

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FY 2012 Proposed Budget

General Fund

June 14, 2011 – General Fund 2012 Budget$93,007,687

July 27, 2011 – General Fund 2012 Budget $93,650,645

Budget Increase $ 642,958

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Notable General Fund Revenue Changes

• Appropriated $1.2 million from General Fund Reserves for FY 2012 CIP

• Appropriated $615k from Voted Debt Reserves

• Reduced Ad Valorem Voted Debt Revenues ($615k)

• Reduced Solid Waste Franchise Fees ($65k) • Reduced Building Reserves ($392k)

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Millage Rate Options

• Current millage rate: 4.8124– Allowable with simple majority vote– No advertised tax increase– Estimated ad valorem revenue of $30,047,732 (at 95% receipt rate)

• Rolled-back millage rate: 4.8656 – Allowable with simple majority Vote– No advertised tax increase– Estimated ad valorem revenue increase $332,171 (at 95% receipt rate)

• Maximum majority vote millage rate: 5.2815– Allowable with simple majority vote– No advertised tax increase– Estimated ad valorem revenue increase $2,928,973 (at 95% receipt

rate)12

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Property Tax Revenue & Millage Rate Comparison ($ millions)

Millage

Tax Assessment

$0

$40

2007 2008 2009 2010 2011 2012 Proposed

4.9879 4.1215 4.2456 4.8124 4.8124 4.8124

$37.42 $35.00 $34.53 $35.89

$32.30 $31.62

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Estimated Homeowner’s OperatingAd Valorem Tax Reduction FY2012

Assessed Value of Home Tax 2011 Tax 2012 Reduction

$200,000 $721.86 $710.31 ($11.55)

$300,000 $1,203.10 $1,185.78 ($17.32)

$400,000 $1,684.34 $1,661.24 ($23.10)

For Fiscal Year 2012, assume a 1.2% drop in assessed value.

FY 2012 – Revenue

• One-time revenue sources for the General Fund - $3,713,407– Cost Allocation Plan, recapture previous years -

$428,790– School Resource Officers – Utilize Forfeiture Funds

- $678,140– Utilize Vehicle Maintenance Fund – $1,000,000

($571,000 Reserves; $429,000 Operations)– Utilize Self Insurance Fund Reserves – $1,615,625

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General Fund Expenditures (in millions)

$0

$10

$20

$30

$40

$50

$60

$70

Personal Services

Operating Expenditures

Capital Outlay Debt Service Other Uses

$63

$17

$1

$8

$2

$66

$18

$1

$8

$1

FY 2011 Budget

FY 2012 Budget

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Adopted FY 2011 Budget - $91.18 MillionAdopted FY 2011 Budget - $91.18 MillionProposed FY 2012 Budget - $93.65 MillionProposed FY 2012 Budget - $93.65 Million

Increase of $2.47 million or 2.7%Increase of $2.47 million or 2.7%

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Projected 2012 General Fund Expenditures by Category

Personal Services71%

Operating Expenditures

19%

Capital Outlay1%

Debt Service8%

Other Uses1%

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Projected 2012 General Fund Expenditures by Department

Parks & Recreation4%

Town Administrator

2%Budget and

Finance2%

Debt Service9%

Law Enforcement39%

Fire Protection Serv.24%

Engineering1% Building

4%P & Z1%

Human Resources & Risk

2%Other

Departmental2%

Non-Departmental3%

Public Works8%

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Notable General Fund Expenditure Changes

• Transfer $1.2 million of General Fund Reserves for FY 2012 CIP

• Remove the 7 new/proposed Building Division positions – ($541k)

• Eliminated the Project Manager position in Public Works – ($117k)

• Added two part-time positions in Budget and Finance - $47k

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Personnel Summary COLAs andSteps Budgeted for FY 2012

• Police (per current contract) – $420,000– Not Topped Out Employees - 5% step increase on anniversary (3.5%

for New Employees)– Topped Out Employees – 2.5% step increase on Oct 1

• Fire - $0 - Ongoing Contract Negotiations

• FOPA Civilian (per current contract) - $284,000– Not Topped Out Employees - 5% Step Increase– Topped Out Employees – 2% COLA on Oct 1

• Executive, Management and Non-Represented Employees and Town Council - $0– 0% Step (3rd consecutive year)– 0% COLA (second time over three years)

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Est. Property Tax Bill Reduction in FY2012 for aSingle Family Home with $200,000 Taxable Value in FY2011

FY2011Tax Bill

FY2012 Est. Tax Bill Variance

Ad Valorem $962.48 $950.93 ($11.55)

GO Debt Service $172.96 $175.25 $2.29

Solid Waste Assessment $331.64 $266.50 ($65.14)

Fire Assessment $130.00 $130.00 $0

Total Bill $1,597.08 $1,522.68 ($74.40)

The above reflects the Town of Davie’s portion of the tax bill only.

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FY 2012 Comparison of the Est. Property Tax Bill Utilizing $614,500 Voted Debt Reserves

Single Family Home with $200,000 Taxable Value in FY2011

FY2011Tax Bill

Scenario 1 FY2012

Est. Tax Bill

Scenario 2 FY2012

Est. Tax Bill

Ad Valorem $962.48 $950.93 $950.93

GO Debt Service $172.96 $175.25 $155.81

Solid Waste Assessment $331.64 $266.50 $266.50

Fire Assessment $130.00 $130.00 $130.00

Total Bill $1,597.08 $1,522.68 $1,503.24

Total Reduction ($74.40) ($93.84)

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Discussion

• What Still May Change– Utilities - Capital Projects– CRA - Reserves / Capital Projects– Golf Fund– State Revenue Estimates– IAFF Negotiations– Red Light Cameras

• General Discussion about FY 2012 Budget

Capital Improvements Program

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FY12-16 Capital Improvements Program

• 60 projects in the FY12-16 CIP Program.- $93.1 million

• 28 projects scheduled for FY12 CIP Year.- $46.4 million

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FY12 CIP Budget per department

$16,025,000

$442,500

$67,000

$1,070,000

$28,517,299

$250,000

FY12 CAPITAL PROJECTS TOTAL

CRA

FIRE

PARKS AND RECREATIONPUBLIC WORKS

UTILITIES

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FY12 General Fund (GF) Reserves

15 projects are proposed to be funded by GF Reserves, totaling $1.169 million in FY12 CIP Year.

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FY12 GF Reserves Projects

Fire- Cardiac Monitor Equipment - $60,000- Chest Compression - $12,500- EMS Ambulance - $150,000- Field Operations Center (FOC) - $100,000- Fire Hoses - $70,000- SCBA Air Bottles - $50,000

Parks and Recreation- PI Park Multipurpose Center ADA Improvements - $20,000- PI Pool Heater and Cooler - $17,000

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FY12 GF Reserves Projects

Parks and RecreationPI Pool Leak Repair - $60,000PI Pool Vacuum - $10,000

Public WorksAir Conditioner Evaluation - $20,000Asphalt Overlay - $400,000Guardrail Installation - $50,000Police Department HVAC - $130,000Wind Vulnerability Building Assessment - $60,000

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Program Highlights

• ADA Improvements to Pine Island Park Multi-purpose Center Entrance

• College Avenue Improvements (SR84 to Nova)

• FOC Improvements (Bamford Park)

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Discussion / Questions / Comments

Community Endowment Grant

Program

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Community Endowment Grant Program

• Transition from Donation to Grant Program

• Current process – Donations

• Donation Quarterly Reporting

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Grant Program

– Non-profit tax exempt status

– Grant agreement

– Site visits

– Required Quarterly Reports

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Endowment Balance

• Current Endowment balance is $950,000

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Yearly allocation increases, balance decreases

$-

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

FY08 FY09 FY10 FY11

COMMUNITY ENDOWMENT DONATIONS

COMMUNITY ENDOWMENT BALANCE

Proposed FY12 Cycle1. Interested agencies submit documentation:– Proof of non-profit tax exempt status– Organization and impacts on Davie residents– Financial Documentation– Quarterly Reports (if previously funded)

2. Staff conducts site visits and completes analysis of submitted documentation.

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Proposed FY12 Cycle

3. At a Council workshop, funding will be distributed based on a pre-determined cap.

4. Recipient agencies will be required to execute a grant agreement detailing site visits and quarterly reports.

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Community Endowment Future

• Evaluate the grant program to determine if any changes are necessary.

• Create a grant application for the FY13 cycle.

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Endowment Cap – FY2012

At this workshop, we are recommending that Council set a Endowment cap of $250,000 for FY12. This funding amount would bring the Endowment back to its FY08 funding allocation.

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Discussion / Questions / Comments

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Dates / Meetings

– Next Workshop (Community Endowment / Budget)• August 17th at 4:00pm

– Budget Hearings• September 7th & 21st at 5:01pm (coincide with

Council meetings)

– Special Assessment Hearing• September 14th, Noon

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Thank You