…title
ITEM: SECOND PUBLIC HEARING ON THE FISCAL YEAR 2015/2016 PROPOSED MILLAGE RATE AND ANNUAL BUDGET FOR WELLINGTON
I. RESOLUTION NO. R2015-74 (MILLAGE RATE)
A RESOLUTION OF WELLINGTON, FLORIDA’S COUNCIL ADOPTING THE TAX LEVY AND MILLAGE RATE FOR WELLINGTON FOR THE FISCAL YEAR COMMENCING OCTOBER 1, 2015, AND ENDING SEPTEMBER 30, 2016; AND PROVIDING AN EFFECTIVE DATE.
II. RESOLUTION NO. R2015-75 (WELLINGTON BUDGET)
A RESOLUTION OF WELLINGTON, FLORIDA’S COUNCIL ADOPTING A BUDGET FOR THE VILLAGE OF WELLINGTON FOR THE FISCAL YEAR COMMENCING OCTOBER 1, 2015, AND ENDING SEPTEMBER 30, 2016; AND PROVIDING FOR AN EFFECTIVE DATE.
REQUEST: Approval of the proposed fiscal year 2015/2016 millage rate, operating and capital budget including balances brought forward. This is the second public hearing on the proposed budget and the corresponding ad valorem millage rate in accordance with the Wellington Charter and F.S. Chapter 200.065.
…body
EXPLANATION: FS Chapter 200.065 sets forth the procedure to be followed by each local government in adoption of the annual property tax millage, levy, and budget. In accordance with these regulations, the June 25, 2015 certified total taxable value of $6.94 billion is used in the millage and ad valorem revenue calculations for the FY 2015/2016 budget. The proposed millage rate of 2.45 mills is the same as the preliminary TRIM rate adopted on July 14, 2015, equal to last year’s rate, and above the rollback rate of 2.2443 mills by 9.17%. The millage rate generates property tax revenues of $16,166,495, which is an increase of $1,473,582 from the FY 2015 property tax revenues.
The proposed budget totals $85.45 million, an increase of $8.50 million due to the budgeted use of fund balance for capital projects, higher major maintenance of infrastructure, and the addition of in-house tennis program operations. Excluding transfers, the total budget increases $5.98 million. The proposed budget supports existing levels of service while investing in infrastructure and roadway maintenance, improvements to Village roads and pathways, neighborhood revitalization and public safety.
Council held budget workshops on July 13th and August 24th to discuss the proposed operating and capital budgets, and adopted the annual budgets and rates for Solid Waste Collection, Water/Wastewater Utilities, and LWPC on August 11, 2015. The Acme Improvement District budget and assessment was adopted on August 25, 2015, and the Village tentative budget and millage rate were adopted September 10, 2015.
Staff presents a balanced budget for the governmental funds, excluding Acme and balances brought forward, totaling $57,424,692, an increase of $7.93 million from the prior year due to added capital projects and major maintenance. The final proposed budget is approximately $6.4 million higher than the budget proposed in the first public hearing on September 10th with the addition of in-house tennis operations and $3.2 million in road and pathway improvement projects .
The proposed budget includes:
• General Fund reserves of 25-30% per Council policy, after allocation of $3.17 million in unrestricted fund balance for FY 2016 expenditures
• Rate Stabilization reserves of $2.48 million, assuming that the current year (FY 2014/2015) Rate Stabilization allocation of $665,000 for legal expenses is fully expended.
• Emergency Reserves of $2.48 million
• Use of Building Reserves of $658,000
• Funding of:
a) 302 full-time permanent positions, an addition of 5 positions from FY 2015 for tennis operations and an increase of 7,330 part-time hours for tennis and utility part-time additions.
b) 1.5% cost index and 1% merit wage increases for employees and a 10% health insurance rise.
• Anticipated carry forward of an estimated $26 million in unspent operating and Capital Funds budget balances for ongoing projects and capital improvements. This amount does not include the roll-forward of over $12 million in open purchase orders for projects in progress. Upon carry forward of capital project balances, the reallocation of $3.92 million in existing project budget balances from FY 2015 completed or overfunded capital projects (a positive net impact of $200,000 increase in capital reserves) is requested as follows:
a) Add $70,000 to the Surface Water Management System Improvements Project from the Swale Maintenance Program now funded in the Acme Fund operating budget (net impact of $0)
b) Reserve $200,000 remaining in the Gas Tax Capital Fund from the Shellrock and Path & Roadway Overlay Program budgets now funded in the Road Maintenance Fund operating budget ($200,000 increase to capital reserves)
c) Reallocate $3.65 million among Water & Wastewater capital projects to align funding with planned improvements to Water Distribution, Water Treatment Facility and Wastewater Treatment Facility Renewal and Replacement projects (net impact of $0)
The legal advertisement was placed in the local newspaper before this budget hearing.
BUDGET AMENDMENT REQUIRED: NO
PUBLIC HEARING: YES QUASI-JUDICIAL: NO
FIRST READING: SECOND READING: YES
LEGAL SUFFICIENCY: YES
FISCAL IMPACT: At 2.45 mills, $16.16 million of property tax revenues are generated, as adjusted for discounts. The budget appropriates a total of $57.42 million for Wellington governmental funds (excluding Acme Improvement District budget adopted by Council on August 25, 2015) and carrying forward approximately $25 million in capital and $450,000 in operating project balances.
WELLINGTON FUNDAMENTAL: Responsive Government
RECOMMENDATION: Motion following the public hearing to approve Resolution No. R2015-74 adopting the millage rate and Resolution No. R2015-75 adopting the Fiscal Year 2015/2016 budget as presented and authorize staff to make the necessary accounting entries to complete reallocation of prior year operating and capital balances.