1. FY 2012 Budget Workshop #2 July 27, 2011 1

2. 2 Richard J. Lemack Town Administrator July 27, 2011 Town Council Budget Workshop Introduction

3. 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 3

5. Today’s Agenda Discuss budget revisions made since the June 14 th Budget Workshop CIP presentation Endowment presentation Discuss upcoming meetings 5

6. Town of Davie FY 2012 Budget 6

7. Town of Davie Total Proposed Budget 7 Adopted FY 2011 Budget - $191.5 Million Proposed FY 2012 Budget - $148.8 Million Decrease of $42.7 million or 23% mainly due to W&S Capital Projects and CRA reserves appropriation Projects and CRA reserves appropriation

8. FY 2012 Proposed Budget Water and Sewer Fund (millions) FY 2011FY 2012Δ 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 $0 Other Uses$3.5$5.2$1.7 Total$24.1$20.9($3.2) 8

9. General Fund FY 2012 Proposed Budget 9

10. 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 10

11. 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) 11

12. 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

13. 13 Property Tax Revenue & Millage Rate Comparison ($ millions)

14. 14 Estimated Homeowner’s Operating Ad Valorem Tax Reduction FY2012 Assessed Value of HomeTax 2011 Tax 2012Reduction $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.

15. 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 15

16. General Fund Expenditures (in millions) 16 Adopted FY 2011 Budget - $91.18 Million Proposed FY 2012 Budget - $93.65 Million Increase of $2.47 million or 2.7%

17. 17 Projected 2012 General Fund Expenditures by Category

18. 18 Projected 2012 General Fund Expenditures by Department

19. 19 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

20. 20 Personnel Summary COLAs and Steps 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 (3 rd consecutive year) – 0% COLA (second time over three years)

21. 21 Est. Property Tax Bill Reduction in FY2012 for a Single Family Home with $200,000 Taxable Value in FY2011 FY2011 Tax Bill FY2012 Est. Tax BillVariance 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 $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.

22. 22 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 FY2011 Tax Bill Scenario 1 FY2012 Est. Tax Bill Scenario 2 FY2012 Est. Tax Bill Ad Valorem$962.48$950.93 GO Debt Service$172.96$175.25$155.81 Solid Waste Assessment$331.64$266.50 Fire Assessment$130.00 Total Bill$1,597.08$1,522.68$1,503.24 Total Reduction($74.40)($93.84)

23. 23 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

24. Capital Improvements Program 24

25. 25 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

26. 26 FY12 CIP Budget per department

27. 27 FY12 General Fund (GF) Reserves 15 projects are proposed to be funded by GF Reserves, totaling $1.169 million in FY12 CIP Year.

28. 28 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

29. 29 FY12 GF Reserves Projects Parks and Recreation PI Pool Leak Repair - $60,000 PI Pool Vacuum - $10,000 Public Works Air Conditioner Evaluation - $20,000 Asphalt Overlay - $400,000 Guardrail Installation - $50,000 Police Department HVAC - $130,000 Wind Vulnerability Building Assessment - $60,000

30. 30 Program Highlights ADA Improvements to Pine Island Park Multi- purpose Center Entrance College Avenue Improvements (SR84 to Nova) FOC Improvements (Bamford Park)

31. 31 Discussion / Questions / Comments

32. Community Endowment Grant Program 32

33. Community Endowment Grant Program Transition from Donation to Grant Program Current process – Donations Donation Quarterly Reporting 33

34. Grant Program – Non-profit tax exempt status – Grant agreement – Site visits – Required Quarterly Reports 34

35. Endowment Balance Current Endowment balance is $950,000 35 Yearly allocation increases, balance decreases

36. Proposed FY12 Cycle 1. 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. 36

37. 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. 37

38. Community Endowment Future Evaluate the grant program to determine if any changes are necessary. Create a grant application for the FY13 cycle. 38

39. 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. 39

40. 40 Discussion / Questions / Comments

41. 41 Dates / Meetings – Next Workshop (Community Endowment / Budget) August 17 th at 4:00pm – Budget Hearings September 7 th & 21 st at 5:01pm (coincide with Council meetings) – Special Assessment Hearing September 14th, Noon

42. 42 Thank You