City of Coral Springs, Florida Management’s Discussion and Analysis (Unaudited) The City’s governmental activities net position decreased from $158.9 million in 2020 to $156.3 million in 2021. Total revenues from governmental activities increased by $5.9 million from fiscal year 2020. The increase is due primarily to a $3.1 million or 5.0% increase in property tax revenues which is from a 4.9% increase in the City’s total taxable assessed value, and a $4.2 million increase in charges for services. Charges for services increased because many services such as classes, summer programs, facility rentals that were canceled in fiscal year 2020 due to the COVID19 pandemic, were partially resumed in fiscal year 2021. Expenses during fiscal year 2021 increased $17.4 million or 9.9% primarily as a result of general government, police and fire and emergency services activities. The City’s business-type activities net position increased from $62.3 million in fiscal year 2020 to $67.4 million in fiscal year 2021. The $5.1 million increase is primarily due to a $2.9 million increase from current year operations in the Water and Sewer Fund, $2.0 million increase from current year operations in the Stormwater Fund, and a $0.2 million increase from current year operations in the Solid Waste Fund. The Water and Sewer Fund’s operating earnings are primarily due to a rate increase implemented in October 2020. The water conservation rate structure modification increased certain rates by an average of 3.5%. The operating and administrative costs increase is primarily due to an increase in wastewater treatment fees charged to the City by Broward County and an increase of 3% for salaries and benefits. The Stormwater Fund’s revenues are derived from a special assessment which is levied based upon a flat rate per equivalent residential unit (ERU). The Fund’s operating earnings are primarily due to a 3.5% rate increase offset by an increase in operating expenses due to a 3% increase in salaries and benefits. The Solid Waste Fund residential assessment rate of $30 per single family home remained unchanged from the prior year. As a result, the Solid Waste Fund revenues remained flat while operating costs increased due to a rate increase from third-party haulers. Capital grants and contributions increased $543,000 in fiscal year 2021. These contributions typically vary from year to year based on activity and fluctuations are expected. Financial Analysis of the City of Coral Springs’ Funds As noted earlier, the City uses fund accounting to help ensure and demonstrate compliance with finance-related legal requirements. Governmental Funds The focus of the City’s Governmental Funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City’s financing requirements. In particular, an unassigned fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year.
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