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Home My WebLink About2025 08 27 Regular 501 - TLBD Budget Overview Presentation provided by Chairperson BivonaTuscawilla Lighting and Beautification District 2025 Review 2026 Photos obtained from google and TLBD committee member 1 Opening Statement History of the Tuscawilla Lighting and Beautification District (TLBD): •Tuscawilla was established in the 1970. Concerns arose related to the natural deterioration of planting, lighting and other features along Winter Springs Blvd and other throughfares. The major concern which arose over time (20+ years) was about the adverse effect on homeowner property values and the overall attractiveness of Tuscawilla as a premium place to live and as a magnet location for the growth in greater Orlando. The overall appearance of Tuscawilla and the public areas, especially the main entrance on Tuscawilla road and the medians on Winter Springs Blvd. were the initial primary concerns. •The TLBD got its start from an initiative by the Board of Directors (BOD) of the Tuscawilla Home Owners Association (HOA) in July, 1998. The TLBD's bylaws, formally known as rules of procedure, allow the advisory committee to hear matters and make recommendations as required by the City Commission. The committee's function, however, is guided by the City of Winter Spring ordinances and overall comprehensive plan. •The mission of the Winter Springs Tuscawilla Lighting and Beautification District (TLBD) is to: •Managing district projects: The committee provides project updates, such as replacing dead plantings, repairing irrigation systems, along with updates on Fountains and Entrances on Winter Springs Blvd. to the City Staff/Commission. •Overseeing maintenance: The TLBD is responsible for recommending upkeep of medians, fountains, landscaping, tree planting, and hardscape maintenance. •Enhancing infrastructure: The district manages upgrades to street lighting and monument signs within the community. •Recommending policy: The advisory committee makes recommendations to the City Staff/Commission on budgets and other items relevant to the district's operation. •The TLBD Board wants to affirm our commitment to the mission and that we take our responsibility seriously in managing the overall financial responsibility, and maintaining a high quality of commitment for all our residents. •We acknowledge that any fee/assessment increase is a sensitive topic, and the board has approached this decision with careful consideration. We have recommended that an outside company complete a review of the current assessments. Our Commitment to the Community 2 Where do the Assessment Go? Understanding the Budget Assessments to the Tuscawilla Maintenance area: Sources •The non-ad valorem assessment roll on file with the City Clerk for the Tuscawilla Maintenance Assessment Area is currently set the annual rate of $128.00 per Equivalent Residential Unit (reflecting an increase of $8.00 compared to the prior years amount and being equal to the maximum rate of $128.00 previously authorized by the City). How the Assessments are allocated: Applications •Operating Expenses related to landscaping, utilities, maintenance and repairs of district, and administrative costs (insurance, management and legal) •Maintaining an adequate Fund Balance to help with unexpected costs •Reserve Contributions for long term projects Tuscawilla Improvement Assessment Area Total Total Parcels 4,617 Total Maintenance Annual Assessment 563,942.40$ Source: City of Winter Springs web Site. Sources: Applications: Applications 555480 Operating 530340 Other Services 530341 Other Services- Contract/Admin 546860 Repairs and Maint/reserves 340430 Utilities 540434 Streetlights 545210 R&M Infra- Fountains 545270 R&M Infra- Grounds 546950 R&M Infra- Signs & Walls Total Operating Total Capital Total Applications /Expenses 3 The Challenge: Rising costs The Reality of Rising Costs The Consumer Price Index (CPI): is a measure of the average change over time in the prices consumers pay for a basket of consumer goods and services. It's essentially a way to track the cost of living and how much more (or less) it costs to buy the same things over time. •The Consumer Price Index (CPI) increased from an average of index 214.537 in 2009 to an estimated index 323.048 in 2025, resulting in a 50.58% increase in cumulative prices over the period. This translates to an average annual inflation rate of approximately 2.59% between these years. •Key CPI Figures •2009 CPI: 214.537 •2025 CPI (estimated): 323.048 •Total Price Change (2009-2025): 50.58% •Average Annual Inflation Rate: Approximately 2.59% What This Means for your Money: •How much is $120 in 2009 worth today? •$120 in 2009 is equivalent in purchasing power to about $180.69 today, an increase of $60.69 over 16 years. The dollar had an average inflation rate of 2.59% per year between 2009 and today, producing a cumulative price increase of 50.58%. •By 2025, inflation rates are projected to be moderated, with some sources forecasting the Headline CPI around 2.3% and Core CPI around 2.8%. Impacts to operating expenses - Applications: •Costs for goods, labor, and services (e.g., landscaping, maintenance and supplies) have steadily increased. •Vendor price increases: Service providers have raised their rates, which impacts our budget directly. •Insurance premium spikes: insurance costs have risen dramatically. •Decreased purchasing power. •Assessments/Revenue sources fail to keep pace: The impact is worse if a revenue or income does not rise at a rate that matches inflation. This results in lower to be services provided and a lower standards being delivered. 4 Year Effective Date Standard Minimum Wage $ Change % Change 2009 Jan. 1 $7.21/hr Jul. 24 $7.25/hr 2010 Jan. 1 $7.25/hr 2011 Jan. 1 $7.25/hr 2012 Jan. 1 $7.67/hr 2013 Jan. 1 $7.79/hr 2014 Jan. 1 $7.93/hr 2015 Jan. 1 $8.05/hr 2016 Jan. 1 $8.05/hr 2017 Jan. 1 $8.10/hr 2018 Jan. 1 $8.25/hr 2019 Jan. 1 $8.46/hr 2020 Jan. 1 $8.56/hr 2021 Jan. 1 $8.65/hr Sept. 30 $10.00/hr 2022 Sept. 30 $11.00/hr 2023 Sept. 30 $12.00/hr 2024 Sept. 30 $13.00/hr 2025 Sept. 30 $14.00/hr 6.79$ 94% Florida minimum wage 2009–2025 Key facts about Florida's minimum wage •Gradual Increase: In November 2020, Florida voters approved a constitutional amendment to gradually increase the state's minimum wage to $15 per hour by 2026. •Annual Hikes: Since 2021, the wage has increased by $1 each year on September 30. •Future Planning: After the wage reaches $15 per hour in 2026, future increases will be tied to inflation. The table of Florida's minimum wage from 2009 to 2025 is provided below, based on data from the Florida Department of Economi c Opportunity, Federal Reserve Economic Data, and labor law resources. The Challenge: Rising costs The Reality of Rising Costs: A Review of Florida Minimum Wages 5 What Happens without an Increase? The Cost of Doing Nothing Overview of the TLBD Maintenance net flows Source Yearly Adopted Budgets from the City of Winter Springs Web site compiled by TLBD Chairperson for Discussion as of 8/2 7/2025 –unaudited and not verified 6 What Happens without an Increase? The Cost of Doing Nothing Financial Observations: •Revenue is not keeping up with Expenses each year. •The cumulative impact of YTD net cash overage/short falls has mounted to a negative $287,204. •Net yearly cash flows are negative most years. •Fund Balances (our checkbook) is projected to be at $57,102 at end of FY. •Fund Balance should contain a balance for unexpected expenses. •There are no reserves for any contingencies, future enhancements or improvements. Adjustments made to Maintenance: In response to rising costs and lack of revenues we had to make adjustments to our priorities. •We prioritize on only the essentials and are selective on what needs to be done for keeping things to a minimum vs. the beaut ification as intended. •Reduced quality of common area maintenance as contracts were up for renewal to save cost, less mulch, older planting that nee d replacement- leave as is, minimal, to no fertilizer/insecticide/herbicides. Landscaping contracts were reworked to keep cost dow n. •Slower response times for repairs. Delay if possible. •An aging infrastructure has caused more significant, more expensive problems then in the early years and will continue into t he future. •Fountain Issues- North and South fountain, Main Entrance Walls, Waterfall repairs, Landscaping, Irrigation, Maintenance, etc. 7 A Responsible Path Forward: Investing in Our Community's Future Proposed Assessment Increase for 2025/26 •In 2020 it was brought to the attention to the City of Winter Springs that the operating budget will need to have an assessment review by an independent company. As our expenses were continually exceeding the revenue and we were slow walking improvements to the district until such study was to be conducted. •The finance team took our recommendation and began to work on the request. Through various teammate changes and other City priorities our recommendation fell off the prioritization list. •We resurfaced the need for progress on the request with urgency with the New Leadership last year and push for a review again this year. •A stable, predictable assessment is preferable to any large, unpredictable special assessments or continually budget constraints. •With New City Leadership in place the independent study has been complete with a recommendation. This recommendation will be shared today. 8