The City of Coconut Creek, in preparation for its October 1st budget year, has taken a measured approach to city budget cuts that include minimal impact to city services and staffing. Discussions among the City Commission, citizens, staff and other members of the community provide the basis for establishing project and program modifications. As a result of recent legislative actions mandating property tax revenue reductions, this is the first year in many where the City Manager’s proposed budget does not implement new or expand programs or services. In fact, all current employees are taking significant cuts in benefits to lessen the impact of the State legislative action to avoid dramatic, immediate cuts in service and employee layoffs.

The 2008 budget has been developed to allow scaling back or elimination of services during the next year through attrition and program re-evaluations. The anticipated savings from the cuts in employee benefits amounts to roughly $850,000. Specific services that are not providing a rate of return sufficient to be continued are the Sunday and holiday hours at the Coconut Creek Community Center located at 1100 Lyons Road and holiday hours at the Recreation Complex located at 4455 Sol Press Boulevard. The Fitness Center at the Recreation Complex will operate on limited hours on Sundays, from 8:00 AM – noon. These adjustments will provide a reduction in overtime and a redeployment of staff. Capital outlay refers to machinery and equipment exceeding $1,000 used in various departments as well as, facility renovations that do not rise to the definition of capital improvement projects. Approximately $500K is budgeted annually for this purpose, however, only $219,270 is proposed for next year. Continued programs and service levels have and will continue to come from a reallocation of resources.

“As part of our normal annual process, we asked each city department to closely review operating expenses to eliminate obsolete, ineffective, and/or inefficient services, processes, procedures and programs,” stated Karen Brooks, Director of Finance, City of Coconut Creek. “This requires difficult decisions on where to allocate resources so as to maintain the same or greater level of service ensuring that our residents and businesses receive the highest return for tax dollars spent.”

City positions that were or became vacant during the year went through an evaluation process to ensure continued necessity and fiscal stability. As a result, six positions are proposed to be eliminated which include a Grant Compliance Officer, Chief Mechanical Inspector, Police Records Supervisor, Recreation Customer Service Representative, Recreation Attendant, and a Maintenance Service Worker I. The total cost of the eliminated positions is approximately $284,000. This evaluation, prioritization and restructuring of staffing, particularly in light of the tax mandates, will continue throughout the next fiscal year.

Property taxes, also known as ad valorem taxes, are a major source of revenues for municipal governments. Coconut Creek’s projected property tax revenue of $15.8 million accounts for sixty-three percent of tax revenue and approximately one-quarter of all city revenue. The balance of revenues is generated primarily from charges for services, intergovernmental revenues, and building and permit fees. An operating millage rate of 4.3796 determined by State legislation is proposed, representing an overall 18% decrease from the current operating millage rate of 5.3408 and a 9% decrease below the rollback rate of 4.8127. However, consideration will be given to approving the roll-back rate of 4.8127 to properly fund personal services, contingency and other critical expenses. Doing so would generate approximately $1.5M and require approval of 4/5 of the Commission.

“In spite of the recently enacted mandates of the State Legislature which, in effect mandates a down-sized local government, we must remain adaptable, flexible, and responsive to all of our constituents,” stated John Kelly, City Manager, City of Coconut Creek.

An alternative option for generating funds is to consider fire assessment rates. Fire assessment rates have been previously authorized to increase by six percent from $67.95 to $72.03 for single-family homeowners. This corresponds to the annual six percent increase in our fire contract with the City of Margate and recovers approximately 60% of fire protection costs. However, a key component to the city’s financial stability is the ability for city programs to be self-supporting. To maintain our financial stability in light of ongoing State mandates recovering 100% of allowable fire protection costs currently subsidized by other General Fund revenue sources will be considered. This option would cost a single family homeowner $116.48 and generate nearly $1.6M annually for the city.

An additional source of revenue to Coconut Creek comes from the Municipal Services Agreement with the Seminole Tribe of Florida. It provides funds to Coconut Creek to address immediate and long range impacts on the city. That funding has been dedicated for capital projects. Some of the Seminole funding assisted in the development of the Coconut Creek Community Center as well as, the purchase of land in the MainStreet area. In fiscal year 2006, the city was able to sell a parcel of property, realizing a gain on that sale that was placed specifically in the City’s Capital Improvement Fund. “This year, with State mandated revenue reductions, the City is facing a significant budget shortfall. As a result of the funding received in the sale of property, the City has been able to fund a vast majority of capital projects in this proposed budget, totaling $1,184,100, without using tax dollars,” stated Dave Rivera, Deputy City Manager, City of Coconut Creek. “This is however, a capital gain, a one time shot in the arm to support Capital Projects. Next year this level of support for capital projects will not be available.”

The proposed budget maintains city services and programs to minimize the level of impact on the residents, City employees and others depending on services. It is also expected that targeted reductions in service levels and program eliminations will be continued during the next budget cycle.

Calculator on Tax Proposal On Property Appraiser’s Web Site

Property Appraiser Lori Parrish has installed a tax calculator on the agency’s web site to assist residents in determining how the proposed Constitutional amendment would affect their property taxes. The “Super Exemption” calculator is located on the web site www.bcpa.net. To access the calculator, click on Property Search and click on Accept. You can access property records by name, address, property identification number or subdivision. At the top of the page, look for the “Super Exemption” calculator. The site lists the current assessments of property throughout Broward County, as of July 1, 2007.

Residents to Vote On “Super Exemption”

On January 29, 2008, coinciding with the presidential preference primary election, voters will be asked to essentially eliminate the Save Our Homes homestead exemption, replacing it with a new “Super Exemption.” If the “Super Exemption” is approved by voters (60 percent is required for passage), existing homesteaders could opt for either exemption. Under the current Save Our Homes exemption, homesteaded property is capped at a three percent increase in value each year for tax purposes.

The new “Super Exemption” would exempt 75% of the first $200,000 of property value from taxes and 15% of the value between $200,000 and $500,000. The maximum exemption in the first year would equal $195,000.

For full details on the property tax reform legislation, as well as information and data on Broward County’s current budget process, residents should visit www.broward.org/2008budget.