Commission Special Meeting - Granicus

Serving with Excellence, Innovation and Integrity.

July 22, 2020

Commission Special MeetingBusiness Plan II

1


Business Plan II Agenda

Next Steps

Forecasting Model

Business Initiatives

Fund Overviews

Current environment – Budgeting for FY2021

Current fiscal conditions


Current environmental conditions

3

COVID‐19

Volatile Stock Market

Social Change

Slowing of consumer confidence

Strong Real Estate Market

Business Closures


This budget focuses on adapting to rapidly

changing conditions while ensuring that our

residents and businesses continue to receive quality services. More than ever,

our budget needs flexibility to address our community needs, and this flexibility is possible because of the City’s

dedicated and innovative staff that continue to adapt to changing priorities without

sacrificing service levels.

4

“Can we afford to own what we currently own?”

Formulate Multiple Budget scenarios

FY2021 Prior COVID‐19 FY2020 LevelsFY2020 minus 2% of operations

FY2020 minus 5% of operations

Departments are asked to review and supply 18 items

Dept. Mission

Core Processes

Key Performance Indicators (KPI)

New & Ongoing Initiatives

Staffing

Capital Improvement

Program(CIP) &

Replacement Plans

Line Item Details

Budget Kick‐off


Effects of COVID‐19 on Revenues

5

• Scenario results in a $11.7M revenue loss over 3 years.

• Revenue loss is before any:o Federal Assistanceo Short or mid term borrowing to bridge cash flow shortfall

oAppropriating Fund Balance (Reserves)

Revenues With COVID‐19

Revenues Without COVID‐19

120,000,000.00

125,000,000.00

130,000,000.00

135,000,000.00

140,000,000.00

145,000,000.00

150,000,000.00

155,000,000.00

160,000,000.00

FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26

General Fund Revenue Loss

Baseline Variance Revenues With COVID Revenues Without COVID


Our Proposal Considers the following:

Assumptions:• Variable Revenues

• Property Values (+)• State Revenues (‐)• Charges for Services (unknown)

• One Time Financial Tactics• Equipment Svcs Fund Depreciation• Liquidate CIP• Restrict Travel• Health Fund cost restraint• Continue essential hiring practice• Hold on needed projects• Appropriations if needed

• Monthly Financial review• Quarterly Recommended action

Consequences on the Operations:• Training (Registration/Education)

• Equipment• Reduce Supplies• Travel/Meals/Lodging• Performance Incentives• Reduced Fund Balance – risky• Museum subsidy

6


Delaying MomentumFiscally – delay in plans• Increasing Reserves 17‐25%• Addressing CIP plan

• Recurring Capital• One‐Time Capital

• Developing plans to “afford to own what we own”

• Enhancing replacement plans• Facilities (A/C, Roof)• Parks Replacement ‐ fencing

• Establishing new replacement plans• Radio Equipment• Charter School CIP plan

Strategic Plan – delay in milestones• Charter School – on hold• Public Safety/Public Works Building – delay in milestones due to funding

• Amphitheater Development – on hold• Village Square Development ‐ delay• Corporate Park Business Development –different milestones

• Entertainment Destination Strategy – on hold• Co‐Work Space Development – on hold• University Presence Strategy – on hold

7

Strategic Plan Completion: 17/53Business Plan Completion: 91/185


CURRENT FISCAL CONDITIONS

8


FY 2020 Year‐end ProjectionGeneral Fund

Revenues Expenditures

$128,062,245 $131,385,704

Estimated Deficit = ($3,323,459)

Projections as of end of June (75% of Fiscal Year)

Estimated Year‐end Range Projection = $3 million ‐ $7 million . Forecasters encourage ranges as fluctuations and changes in market volatility are inevitable during this time.


FY 2020 Year‐end ProjectionFire Fund


$25,446,615 $25,569,162

Estimated Deficit = ($122,547)



FY 2020 Year‐end ProjectionMuseum Fund


$299,665 $424,034

Estimated Deficit = ($124,368)



BUSINESS INITIATIVES

12


CITY OF CORAL SPRINGSWHAT YOU GET FOR YOUR MONEY

• Playground Equipment Replacement• Light Fixture Replacement Program• Pickleball Courts at Cypress Park

• Police Replacement Equipment• Firefighter/Paramedics Equipment

• ADA Intersection Upgrades• Funding Road Resurfacing Program• Continued Median Improvements• Existing Walkway Renovations


Status Initiative Name Lead Department

PROPO

SED

Initiatives

Records Scanning – Hardware and Software ($15,800) BuildingPartner with a Retail Economist (existing funds) Budget and Strategy/EDO2021 Comprehensive Plan Amendments ($16,500) Development ServicesCity Security Improvements ($175,208) Emergency ManagementCity Hall at the Mall maintaining Que‐Less system ($15,000) Human ResourcesMuseum Subsidy ($453,863) Non‐Departmental

ONGOING

Initiatives

Writing Expansion – Hiring of Grant Consultant ($10,000) Budget and StrategyCIP Financing Plan Budget and StrategyWebsite Refresh Comm & MktingADA Initiative City Manager’s OfficeEnterprise Resource Planning (ERP) Implementation City Manager’s OfficeExpanded Dispatch Communications (Contractual & existing) City Manager’s OfficeCensus 2020 Development Services



PROPO

SED

Initiatives

Fencing Replacement and Repair ($150,000) Parks & RecreationIrrigation Control System Upgrade ($100,000) Parks & RecreationCanopy Structures Replacement with NCP ($100,000) Parks & RecreationPublic Safety Building 2nd Floor UPS Batteries ($144,750) Police DepartmentPolice Dispatch Redundant A/C ($473,386) Police DepartmentRock Island Bike Lane ($135,000) Public WorksTurtle Creek Bike Lane ($85,000) Public Works

ONGOING

Initiatives

Public Safety/Public Works Campus (4150) Phase 2 City Manager’s OfficeCity Owned Property Master Plan Development Services

Parks Master Plan Implementation Early Phase (Including Senior Programing expansion/Senior Center & Sawgrass Nature Center)

Parks & Recreation

Traffic Calming Program: Implementation Development ServicesSawgrass/10th Street Plan: Advocacy Development Services



PROPO

SED

Initiatives

Enhanced Downtown Events/Entertainment (existing) Economic Development CRA

Infrastructure Improvements in Downtown (existing) Economic Development

Retail Strategy ($35,000) Economic Development

Commercial Retail Focus in downtown (existing) Economic Development

Feasibility Study for the Center for the Arts ($75,000) City Manager’s Office

Cornerstone ‐ beginning of project phase A (existing) Economic Development

ONGOING

Initiatives Charter School Location City Manager’s Office

Amphitheater Development City Manager’s Office

Village Square Development Economic Development



PROPO

SED

Initiatives

Q‐Less for queueing in the One Stop Shop ($9,012) Building

E‐Plan Review – Blue Beam Licenses ($13,000) Building

Coral Springs Regional Chamber Business ($8,000) Economic Development

Researching Local Procurement Options (existing funds) Finance/EDO/Legal

ONGOING

Initiatives

Renaming Commerce Park Economic Development

Increased Business Retention and Expansion Visits Economic Development

Entertainment Destination Strategy Comm & Mkting | EDO

Co‐Work Space Development Economic Development

University Presence Strategy Economic Development

Corporate Park Drainage and Infrastructure Upgrade Public Works



PROPO

SED

Initiatives

Revitalized Code Range Program (existing funds) Development Services

City Signage (existing funds) City Manager’s Office

Neighborhoods with Integrity ($21,100) Development Services

ONGOING

Initiatives Public Schools Partnership Strategy Budget and Strategy

Everglades Strategy City Manager’s Office

CDBG Sidewalk Replacements: NW 85TH Ave, NW 91st Ave, NW 35th Court

(CDBG Funding)

Development Services & Public Works


FY 2021 Tree Trust Fund ProjectsMedian Improvements $300,000Landscape improvements Sample Road

• From University Dr. to SR‐7• From the Sawgrass Expressway to

University Dr.

* If funds are available after Sample Road‐ Coral Ridge Dr. (Westview Dr. to Wiles Rd)


Tree Trust Historical BudgetUpcoming project additions:

o Cornerstone $100,000+o Metropolitan $80,000 o Logar $30,000

Proposed expenditures:o FY2021 $300,000 (Sample)o FY2022 $200,000 o FY2023 $100,000 o FY2024 $100,000

*Future Spending: Coral Ridge Dr., Coral Springs Dr., Royal Palm Blvd., Atlantic Blvd., and Sample Rd, and collector roads such as Forest Hills Blvd, Lakeview Dr., Westview Dr., and other smaller roads.

2017 2018 2019 2020 2020 2021Actual Actual Actual Budget Actual Budget

Beginning Balance 350,480 850,237 827,439 877,779 877,779 675,793

Additions: Fines 498,603 114,564 126,672 0 0 0 Licenses and Permits 7,457 2,285 6,868 0 3,035 0 Interest 6,967 9,589 23,455 0 4,979 0Total Revenue 513,027 126,437 156,994 0 8,014 0

Expenditures: Tree Master Plan Royal Palm Entryway Median Improvements 13,270 149,235 106,654 210,000 6,031 300,000 Landscape North Parcel Nuisance RemovalTotal Expenditures 13,270 149,235 106,654 210,000 6,031 300,000

Ending Balance 850,237 827,439 877,779 667,779 879,762 375,793


ENTERPRISE RESOURCE PLANNING (ERP) SYSTEM

Budget and Operational Challenges/Opportunities

PUBLIC SAFETY/ PUBLIC WORKS CAMPUS

DISPATCH COMMUNICATIONS

ADA INITIATIVE

DEPARTMENT REQUESTS & UNFUNDED CAPITAL IMPROVEMENT LEGISLATURE/

UNFUNDED MANDATES


New Staff for FY 2021 Initiatives

*Conversions from Part‐Time Full Time

Positions Added for FY2021 Initiative Position Count Operating Cost Capital Expenditure FundPension Coordinator* 1 ‐$ ‐$ General

1 New Staff Position 1 ‐$ ‐$

This position has no cost to the General Fund as the Police and Fire Pension Boards are funding this position

Number of Full‐Time Employees*

789753 751 752 764 777 792 795 798

823 828 831 837

34

34 34 3737

3736 36 36

36 42 42 41

Regular ContractFY21 TTAV

$11.2 billion

# Bu

dgeted

Positio

ns

*Excludes City Commission


Cities Staff Comparison

25


FUND OVERVIEWS

26


Fire Assessment ComparisonLocal Cities with full service Fire Departments

372.8

4

350.0

0

256.0

0 300.0

0

222.0

0 271.4

8

175.0

0

180.0

0 209.5

0

163.0

0 196.0

0

398.2

3

350.0

0

256.0

0 300.0

0

285.0

0

271.7

5

175.0

0

200.0

0

209.5

0

210.0

0

206.0

0

398.2

3

350.0

0

311.0

0

300.0

0

285.0

0

282.3

8

235.0

0

227.8

2

229.5

0

220.0

0

206.0

0 234.0

0

$0

$50

$100

$150

$200

$250

$300

$350

$400

$450

*Miramar *Tamarac *Ft Lauderdale *Margate *Hollywood *PembrokePines

*DeerfieldBeach (BSO)

*Coral Springs Sunrise *PompanoBeach (+EMS

millage)

Davie

FY 2018 FY 2019 FY2020 FY 2021 Preliminary

*ISO 1 Fire Departments


FY 2021 Fire Fund Highlights • Preliminary Fire Assessment Rates

o Residential from $227.82 to $234.00o Commercial from $26.99 to $25.07o Industrial/Warehouse from $2.71 to $4.02o Institutional from $54.51 to $49.53

• Adds to Staff:o None

• Focus on Firefighter safety and health• Capital requests include:

o Personal Protective Equipment Replacement — $426,793o Self Contained Breathing Apparatus Replacement Plan — $125,431 o Fire Stations Painting & Improvements — $103,021o Vehicles (2) — $94,000o Residential Fire Sprinkler Feasibility Study — $10,000


$100

$150

$200

$250

$300

$350

$400

$450

$500

$550

Fort Lauderdale Hollywood Parkland Sunrise Coral Springs Coconut Creek Tamarac Davie

FY 2018 FY 2019 FY 2020

$379

.32

$370

.92

$372

.00

$273

.75

$223

.32

$207

.54

$198

.36

$260

.00

$248

.00

$390

.72

$377

.65

$278

.75

$223

.32

$215

.00

$204

.12$2

90.00

$488

.40

$456

.00

$388

.56

$324

.33

$284

.04

$278

.75

$230

.64

$372

.00

Residential Solid Waste Assessment Comparison


Preliminary Solid Waste Assessment FY 2019 FY 2020 FY 2021 FY 2021

Residential Service Actual ActualRecy to WTE

Option 1Recy to WTE

Option 2Collection- WastePro $78.35 $86.28 $87.89 $87.89Disposal- Wheelabrator $77.41 $78.92 $93.67 $93.67Franchise Fee $76.32 $76.32 $76.32 $76.32Recycle Processing – Waste Mgt $8.63 $12.63 $0.00 $0.00

Other: HHW/Paint $2.77 $2.81 $2.87 $2.87Admin/BCPA $5.99 $6.36 $6.36 $6.36

Reserve/Early Pmt Discount $9.82 $11.79 $11.79 $11.79Contingency $0.00 $14.89 $11.10 $5.00

Capital $1.02 $0.00 $0.00 $0.00Annual Assessment $260.00 $290.00 $290.00 $283.90


FY2021 Stormwater AssessmentCurrent projects in progress:

Corporate Park Drainageo Design completed in FY2020o Construction to commence November 2020

Meadows and Dells Drainageo Design in process in FY2020o Construction to commence May 2021

Westchester Drainageo Design in process FY2020o Construction to commence in FY2022

FY2020 Annual Assessment $115.66

FY2021 Proposed Assessment $119.13

Proposed Increase $ 3.47


Grant SummaryFY2020 YTDExplored (Total of all grants) = $30 millionApplied for (submitted) = $23.4 millionTotal Pending and In Process = $17.9 million State Requests = $4.1 millionState Requests Funded = $0Total Funded = $2.4 million

FY2019 TotalExplored (Total of all grants) = $25.3 millionApplied for (submitted) = $15.2 millionTotal Pending and In Process = $9.3 million State Requests = $7 millionState Requests Funded = $0Total Funded = $5.3 million


Connecting Local Businesses to Grants and Loans Program

• Total Businesses Enrolled: 335• Total returned Hold Harmless and Vetted: 175• Total Vetted and in Application Process: 175• Total Received Funding: 87 (26%)• Total Amount Received: $1,426,048

33


Replenish Fire Fund, Water & Sewer Fund for Irma expenses

Replenish Unassigned Reserves & Fund Balance

Reserve funding for Capital expenses to avoid issuing debt

Hurricane IRMA

ReimbursementsCOVID-19

Replenish General, Fire and Health Fund for expenses

Replenish Fund Balance & Capital

Reserve funding for Capital expenses to avoid issuing debt

City currently an $25M Open line of credit for 30 months

Hurricane DORIAN

Replenish General, Fire and Water & Sewer Fund for expenses

Replenish Fund Balance Reserve funding for Capital

expenses to avoid issuing debt


Surtax Update

35

While the City submitted an additional project for road resurfacing of the streets in 5 neighborhoods and portions of 2 collector streets, the project request of approximately $1.8 million was ranked 48th for R&M projects. Due to funding limitations for R&M projects, only the top 40 projects are able to be funded. While the County Commission could remove projects from the R&M list, there has been no indication that this would occur.


Top 8 Revenues, 27%

Ad Valorem Taxes, 48%

Other, 5%

Charges for Services/User Fees, 19%

FY 2021 General Fund Budget Total Revenues: $130,990,742

Ad Valorem = $62,796,766Top 8 Revenues* = $35,923,175Charges for Services* = $25,127,950/User FeesOther = $ 7,142,851TOTAL $130,990,742

*Revenues at Risk

Where the Money Comes From

General Fund 5 Year Forecast

Serving with Excellence, Innovation and Integrity.38Note: Slide from July 2017

Serving with Excellence, Innovation and Integrity.39Note: Slide from July 2017


FY2019 action to control expenditure growth assisted staff in addressing the current situation.Due to these proactive measures, staff was able to make the difficult, but necessary, decisionto pull back expenditures relative to revenue declines for FY2021. By the Budget & Strategystaff working with departments, we will be able to assess the current financial actuals andforecast the year ahead and either put forth mid-year budget amendments (assuming returnsexceeding expectations) or, if faced with deeper impacts, revert to the next scenario in ourtoolbox (-5%).

Expenditure ChangeThe General Fund Five-Year Forecast is an integral part of planning the City’sfuture fiscal position. It is an important tool used to determine a longer-rangepicture of the City’s financial horizon for financial stability. This tool is used toevaluate the level of risk the City could face over time if operational costs andexpenditure decisions are higher than revenue growth.

-2%

Controlled ExpendituresFY2021 Reduction of operating expenses

RevenueDiversificationPer Rating Agency review, continue to diversify revenues

Stabilization Current level is 18% of the Stabilization Reserve Requirement of 17-25%

Impact to StakeholderMaintain service levels to our residents and businesses amidst uncertain times

5 Year Forecast TrendFinancial Stability and recommended assumptions

‐4.0%

‐2.0%

0.0%

2.0%

4.0%

6.0%

8.0%

FY2021 FY2022 FY2023 FY2024 FY2025 FY2026

Revenue Change Expenditure Change


FORECASTING MODEL

41

• July 22, 202042

City of Coral SpringsGeneral Fund Sustainability Analysis

Agenda

1. Our Financial Sustainability Modeling Process

2. Background

3. Key Inputs / Assumptions

4. General Fund Diagnostic View & Future Millage Adjustments

5. Discussion & Live Modelling

43

Financial Sustainability Modeling Process Starts with a ten‐year diagnostic view of the financial sustainability of the General Fund

Provides a framework for scenario evaluation and sensitivity tests Considers future consequences of current decision alternatives Develops a long‐term financial management plan inclusive of: Revenue and operating costs forecasts Capital Funding Plans Reserve levels and other KPI’s Millage adjustments Customer / Property Impacts

Background The City has chosen to perform annual financial sustainability analysis during

City’s budget process to incorporate annual fluctuations in: National, state and local economic and legislative environment Local prioritizations Unforeseen events (pandemic, hurricanes, etc.)

Last year’s recommendations: Implement Stormwater Utility Fee Consider millage increases in FY 2022 & every other year of 0.15 mils

Earlier this year we worked with Staff to evaluate economic recession scenarios, however due to COVID‐19 the presentation was not performed

Key Inputs / Assumptions $6 million of City staff estimated revenue losses in FY 2020 from COVID‐19 Offsetting adjustments identified by City staff to FY 2020 Budget such as:

~3% Reduction to Operating Expenses Savings in Salaries & Benefits from non‐essential hiring freeze Capital Savings from review, re‐prioritizing & repurposing of projects Use of Reserves which include $3.5M of Hurricane Irma related FEMA

reimbursements

Proposed FY 2021 Budget includes COVID‐19 revenue reductions to Sales Tax, State Shared, and Charges for Service revenues, and

Offsetting expense adjustments as estimated by Staff, including: One‐time alternative funding of vehicle depreciation chargebacks Overall departmental personnel and operating reductions

Revenues and expenses normalized in FY 2022, back to pre‐COVID levels

Annual cash flow deficitsGrowing deficits reduce reserves below minimum

target

Balancing Plan implemented

Diagn

ostic

View

Minimum reserves maintained

Minor adjustments to millage

Stable cash flows

Prop

osed

FY 20

21

Discussion & Live Modeling

49


8.98988.6000 8.5000 8.5000

7.4665 7.4000 7.2899 7.2500 7.1172 7.1171 7.00006.8102

6.53786.0880 6.0543 6.0018 5.9998 5.9587 5.8732 5.8000 5.6736 5.6270

5.18754.7940 4.6564

4.40004.1193

3.5893 3.5000 3.5000 3.3464

0.0000

1.0000

2.0000

3.0000

4.0000

5.0000

6.0000

7.0000

8.0000

9.0000

10.0000

City Operating Millage Rates ‐ Fiscal Year 2020

Operating Millage Rates


Operating Millage Rate

7.4665 7.11726.0018 6.0543 5.8732 5.8000 5.6736 5.6875 5.627

4.1193

$0$1

$2

$3

$4

$5$6

$7

$8

$9$10

Hollywood Miramar Deerfield Beach Sunrise Coral Springs Plantation PembrokePines

PompanoBeach*

Davie Ft Lauderdale

FY 2020 Final Millage Rates

* Pompano Beach includes a separate EMS millage of 0.5000


School Board of Broward County33.1%

South Florida Water Management District

1.4%City of Coral Springs

30.1%FL. Inland Navigation

0.2%

Hospital District5.1%

Children's Services2.4%

Broward County27.8%

School Board of Broward County

South Florida Water Management District

City of Coral Springs

FL. Inland Navigation

Hospital District

Children's Services

Broward County

How Much of Your Tax Bill Goes to the City?


FY 2021 Business Plan HighlightsStaff Recommendations Milestone Millage Yield Vote Count

ProposedMillage Rate

$5.8732 +$2.8 million revenue increase from FY 2020

State law requires 4/1 Vote to keep millage rate exactly the same

Rolled‐Back Rate

$5.6008 ‐$2.9 million cut to proposed FY 2021Budget

Simple Majority

Any millage rate above the Rolled‐Back Rate will be advertised as a Proposed Tax Increase


FY 2021 Business Plan Preliminary HighlightsStaff Recommendations

• Maintain current millage rate of 5.8732 • The average single‐family household will pay an additional $61.66 in property taxes if City maintains current

rate

• Voter‐Approved Debt Service preliminary millage rate will decrease from 0.2534 to 0.2412 (prelim)

• Fire Assessment Rates (prelim)• Residential increase from $227.82 to $234.00• Commercial decrease from $26.99 to $25.07 per sq ft.• Industrial/Warehouse increase from $2.71 to $4.02 per sq ft.• Institutional decrease from $54.51 to $49.53 per sq ft.

• Residential Solid Waste Assessment will remain the same or possibly decrease• $290.00 for Waste to Energy Recycling• $283.90 for Waste to Energy Recycling (decrease in Contingency)

• Stormwater Assessment will increase by $3.47 (prelim)• From $115.66 to $119.13

July 1 – BCPA values


Impact on Average SF Home$377,579 Average Market Value $292,482 Average Assessed Value Before Exemptions

$ Proposed $ Increase per year

$ Increase per month

Ad Valorem (SOH cap = 2.3%) $1,718 + $ 61.59 $5.13Voted Debt $ 70.53 ‐ $ 0.93 ‐ $0.08Fire Assessment $ 234.00 + $ 6.18 $0.52Stormwater Assessment $ 119.13 + $ 3.47 $0.29Solid Waste Assessment $ 290.00 + $ 0.00 $0.00Total City Taxes, Assessments $2,431.66 + $ 70.31 $5.86

What the Same Home Pays in Other Cities

‐

500.00

1,000.00

1,500.00

2,000.00

2,500.00

3,000.00

3,500.00Ad Valorem

GO Debt Service

Fire Assessment

EMS Assessment

Stormwater

Solid Waste

+$371

+$687

‐$75+$81

‐$110 ‐$169‐$257

*Nuisance Abatement Assessment was Adopted


FY2021 Budget Calendar


THANK YOU

58

Commission Special Meeting - Granicus

Documents

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