b'CC CORNER 2Working towards a sensible budgetIt is now budget time. The budget process in Cooper City has begun. April 16th and April 17th were the first two public Let me help protect you before mayhem strikes. input budget workshops. This article was written before Fromatreebranchfallingonyourcarduringaany of the workshops occurred; still, I have a good idea of the publics feelings concerning our budget. I have met and windstorm to a GPS that sends you the wrong way downspoken with many residents. I believe I understand what the aone-way,mayhemcanstrikeanytime.Sogetanresidents expectations are. I did not make many promises Allstate Agent like me who knows how to help you makewhen I ran. One of my promises was that I would be fiscally sure youre protected. Dont waitcall me today! responsible. Now is the time to keep the promise I made to you.The first step in determining our budget should be assessing our past performance. The best document to assess our performance is the Comprehensive Annual Financial Re-Pat Motta port (CAFR). The CAFR has been audited by an independent CPA firm to assure that the 954-370-1500 financial activities of the City are faithfully represented. The September 30th, 2018 CAFR 7320 Grifn Road, Ste. 100 is available on our website. When you look at the financial statements it will be easy to be distracted by some of Davie, FL 33314 the negative numbers. Yes, it is true that our general fund unassigned fund balance is nega-patrick.motta@allstate.com tive. It is true that our governmental funds expenditures exceeded revenues by more than $8 million. It is also true that our Statement of Net Position shows that total funds (govern-mental and business-type activities) unrestricted net position decreased from $9,825,353 to $316,846 between 2017 and 2018. Its true that we have outstanding construction com-Subject to terms, conditions and availability. Allstate Fire and Casualty Insurance Co.2013 Allstate Insurance Co. 236135 mitments of approximately $8,850,000 and encumbrances of approximately $3,909,000. Still, we have to look beyond the numbers. While it would be expedient to point a finger and place blame for the 2018 perfor- WWW.DRWMAG.COMTO ADVER TISE CALL 954.384.9666P ianoL essons mance, that would be neither accurate nor constructive. Too many projects too soon are just one reason. A hurricane is just another reason. A change in pension accounting report-c oMPosition ing requirements is yet another reason. The good news is that the 2018 CAFR is the past; the future does not need to be a repeat of 2018. In order for us not to repeat it, I believe, the & t heory t utor first step is to learn and acknowledge that we may have not planned the best way possible. I believe residents expect a balanced budget without use of fund balance. I believe residents expect government to operate within its means. My promise was that expenses Serving Cooper City, Davie,would not exceed revenues. I want to rebuild our fund balance. I know this may prove chal-Weston & surroundings lenging to accomplish. Especially since we currently have commitments and projects that cannot be reversed. Some of these projects have not yet been paid for. The 2019 budget N atioNally calls for the use of fund balance to fund a portion of these projects, and a decrease of fund balance usually equates to a decrease in assets. Most commonly the asset used is cash. Our C ertified cash is decreasing; as of September 30th, 2017 we had $27M in cash (and investments) t eaCher of and as of September 30th, 2018 we had $19M. We should not accept another budget that makes use of appropriations of fund balance to balance the budget unless it is part of a well-M usiC planned strategy. The great news is that the Commission seems to understand the importance of im-954.701.1518 proving our finances. Cooper City has governance that listens and responds to residents concerns. The Commission agreed to form a Finance Advisory Board that is tirelessly working on ways to improve the budgetary process. Cooper City has a solid revenue base and we will continue to work towards having a sound, fiscally conservative budget. In the next few months you will hopefully see a united Commission working together towards passing a budget that is part of a long term plan that meets residents expectations.Most of the past shortfalls are due to capital projects; the good news about that is that capital projects are non-recurring expenditures and eventually are paid for. Most of the construction commitments and encumbrances go towards the construction of the new sports field and other capital projects. Once completed, we will be left with one of the best parks in Broward County and no debt, as well as a newly renovated community center and a renovated building department. These are investments in the future of our City that keep us Someplace Special.www .M att J ohnson M usic s tudio . coM BY COMMISSIONER MAX PULCINI30 #361MAY 201930TH ANNIVERSARY DRWMAG.COM'