Revenue Highlights

• Property Taxes (+$12,081,963) - The July 1st property values from the Broward County Property Appraiser increased by 10.72% over last year. The budget is based on an operating millage rate of 8.2466, an increase of 1.2466 mills
• Intergovernmental Revenue (-$2,177,349) – The decrease is primarily because of the American Rescue Plan Act (ARPA).
• Utility Taxes (+$652,542) – The increase is primarily because of the increase in Water rates.
• Franchise Taxes (+$565,426) – The increase is primarily because of the increase in electric franchise fees.
• Licenses & Permits (+$398,241) – The increase is primarily because of the new Certificate of Use program.
• Charges for Services (+$610,817) – The increase is primarily because of the update to the Cost Allocation Study.
• Slot Machine Proceeds (+$800,000) - The effects of COVID-19 are diminishing and tourism is coming back to peak levels.
• Fines & Forfeitures (+$250,000) - The increase is primarily because of the Parking Management Program implemented during FY 2021-22.
• Other Revenues - (+$3,452,267) - The increase is primarily due to new the following stabilization strategies:
  • Payment in Lieu of Franchise Fees from Water and Wastewater Utility (+$1,500,000)
  • Solid Waste Franchise Fees (+$1,500,000)
• Transfers In (-$237,468) - The decrease is primarily because of the decrease of the transfer from the Sanitation Fund. This revenue is now budgeted directly in the General Fund
• Appropriations from Reserves (-$2,297,455) - The General Fund is balanced without the use of reserves.

Expenditure Highlights

The major increases/decreases are summarized as follows:

• Personal Services category increased $4,300,000 due to rising costs in health insurance, COLA and merit increases for the collective bargining units
• Fire costs related to personnel and operating increased by $1,132,535
• Fleet replacement program $962,982.
• Implementation of the Renewal & Replacement program $2,000,000
• Capital Projects increased $2,384,848
• Transfers Out increased by $1,132,535 and $394,764 respectively primarily because of an increase in the Tax Increment Financing (TIF) payment from the City to the Hallandale Beach Community Redevelopment Agency (HBCRA), transfer to capital fund for North City Beach facilities and Transportation Fund subsidy.

Surpluses and Reserves

The FY 2022-23 Budget shows a $22,795,149 of unassigned total General Fund Balance at the end of the year. This represents approximately 23.40% 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 FY23 General Fund Adopted Budget is balanced without the use of fund balance. This adheres to our Strategic Finnacilal 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 6% increase is budgeted for Ad Valorem revenue for FY 2023-24, and 3% for subsequent years. Also includes Future Major Developments.

• $4,989,379 is budgeted for the American Rescue Plan for FY 2022-23 and FY 2023-24.

• All other revenue assumptions for FY 2022-23 and subsequent years are based on recent trends.

• A 5.5% increase is budgeted for Non-Police Bargaining employees for FY 2022-23 and subsequent years. 3% COLA and 2.5% Merit.

• An 8% increase is budgeted for Police Bargaining employees for FY 2022-23 and subsequent years. 3% COLA and 5% Merit.

• The SAFER Grant requires $890,679 in FY 2023-24, $1,919,962 in FY 2024-25, and $2,073,290 in FY 2025-26, and $2,239,153 in FY2026-27. These costs were removed from projections as per the recommended Stabilization Strategies.

• 14 positions related to the SAFER Grant for 6 months in FY 2023-24.

• 14 positions related to the SAFER Grant for a full year for FY 2024-25 and subsequent years, with an 8% increase from the prior years.

• A 5% increase is budgeted for Police & Fire Pensions for FY 2022-23 through FY 2025-26.

• A 4% increase is budgeted for Health Insurance for FY 2022-23 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.

• A 3% increase is budgeted for the Tax Increment Financing payment to the CRA for FY 2023-24 and subsequent years.