General Fund


General Fund Overview


As of September 30, 2022, the Unassigned Fund Balance in the General Fund was $22,687,635. This represents approximately 20% of the FY 2023-24 General Fund Adopted Budget of $111,951,917, which is 4% higher than the 16% reserves policy approved by the City Commission. The General Fund projected surplus for FY 2022-23 is expected to be approximately $4.8 million, bringing the projected General Fund unassigned balance to approximately $27.5 at the end of FY 2022-23.




Based on the current situation presented in the General Fund 5-Year Plan, there is a $69.9 million budget shortfall if no strategies are undertaken. After the strategies, there is a $2 million budget surplus over the same period. Some of the approved strategies include, but not limited to, the American Rescue Plan Act Assistant, New Certificate of Use Program, the Parking Program, and Operating Millage Rate increase. The Operating Millage Rate increase is projected to generate over $30 million of ad valorem revenue in the General Fund.


Revenue Highlights


Revenue Highlights


  • Property Taxes (+$8,349,654) – June 1st property values from the Broward County Property Appraiser increased by 17.59% over last year. The budget is based on an operating millage rate of 8.2466, unchanged from the prior year.
  • Charges for Services (+$166,521) – The increase is primarily because of the Parking Meter Receipts through the revamped Parking Management Program.
  • Utility Taxes (+$1,062,592) – The increase is primarily because of the increase in Water rates
  • Intergovernmental Revenue (-$3,848,048) – The decrease is primarily because of the American Rescue Plan Act (ARPA). $5,480,281 is now budgeted under the Transfer In category.
  • Franchise Taxes (+$806,842) – The increase is primarily because of the increase in electric franchise fees.
  • Licenses & Permits (-$74,358) – The decrease is primarily because of Vacation Rental Fees.
  • Fines & Forfeitures (+$475,000) – The increase is primarily because of Parking Citations through revamped Parking Management Program.
  • Investment Earnings (+$409,000). The increase is primarily because of a higher interest rate environment and healthier reserves from the prior year.
  • Slot Machine Proceeds – Flat from the prior year.
  • Other Revenues (-$304,957) – The decrease is primarily because of the stabilization strategies used in the prior year.
  • Transfers In (+$5,826,014) - The increase is primarily because of the American Rescue Plan Act. This amount was under the Intergovernmental Revenue category in the prior year.

Expenditure Highlights



Expenditure Highlights




The major increases are summarized as follows:

• Surplus for Legal Judgement and stabilization strategies (+$8,050,619)

• Tax Increment Financing (+$1,767,138) payment to the Hallandale Beach Community Redevelopment Agency

• Personal Services increased (+$1,689,228) primarily because of health insurance, COLA and merit increases for the collective bargaining units.

• Replacement Vehicles and Operation & Maintenance (+$1,460,938)

• Contribution to the Transportation Fund (+$854,213)

• General Liability Insurance (+$718,640) – insurance rates increased by 140% from the prior year.

• Cloud Services (+$195,823)

• Overtime Pay (+$175,357) primarily because of vacancies.


Fund Balance Reserves


Surpluses and Reserves

The recommended FY 2023-24 Budget shows a $29,404,983 of unassigned total General Fund Balance at the end of the year. This represents approximately 26.27% of the General Fund Budget. The Government Finance Officers Association (GFOA) recommends, at a minimum, that general-purpose governments, regardless of size, maintain an unreserved fund balance in their General Fund of no less than 5 to 17 percent of regular General Fund operating revenues, or of no less than one to two months of regular General Fund operating expenditures (8-17%). As part of the FY 2020-21 Budget Ordinance, the Commission has set thresholds for reserves in the major funds. Below is a table of General Fund Reserve Balance history and projections.

General Fund Projections

The FY 2023-24 General Fund City Manager Budget is balanced without the use of fund balance. This adheres to our Strategic Financial Plan of developing long term plans to build finance revenues. Revenues and Expenditures for the General Fund actuals as well as projections are shown below:

NOTES:


  • A 3% increase is budgeted for Ad Valorem revenue for FY 2024-25 and includes Future Major Developments.
  • $5,480,281 is budgeted for the American Rescue Plan for FY 2023-24.
  • All other revenue assumptions for FY 2024-25 and subsequent years are based on recent trends.
  • A 5.5% increase is budgeted for Non-Police Bargaining employees for FY 2023-24 and subsequent years. 3% COLA and 2.5% Merit.
  • An 8% increase is budgeted for Police Bargaining employees for FY 2023-24 and subsequent years. 3% COLA and 5% Merit.
  • A 5% increase is budgeted for Police & Fire Pensions for FY 2023-24 and subsequent years.
  • A 4.78% increase is budgeted for Health Insurance for FY 2023-24 and 8% for subsequent years.
  • A 5% increase is budgeted for the contract with the Broward Sheriff's Office for FY 2023-24 and subsequent years.