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ITEM: SECOND PUBLIC HEARING ON THE FISCAL YEAR 2014/2015 PROPOSED MILLAGE RATE AND ANNUAL BUDGET FOR WELLINGTON
I. RESOLUTION NO. R2014-56 (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, 2014, AND ENDING SEPTEMBER 30, 2015; AND PROVIDING AN EFFECTIVE DATE.
II. RESOLUTION NO. R2014-57 (WELLINGTON BUDGET)
A RESOLUTION OF WELLINGTON, FLORIDA'S COUNCIL ADOPTING A BUDGET FOR THE VILLAGE OF WELLINGTON FOR THE FISCAL YEAR COMMENCING OCTOBER 1, 2014, AND ENDING SEPTEMBER 30, 2015; AND PROVIDING FOR AN EFFECTIVE DATE.
REQUEST: Approval of the proposed fiscal year 2014/2015 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.
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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 26, 2014 certified total taxable value of $6.31 billion is used in the millage and ad valorem revenue calculations for the FY 2014/2015 budget. The proposed millage rate of 2.45 mills is 0.05 mills below the preliminary TRIM rate of 2.50 adopted on July 22, 2014, 0.81% lower than the prior year rate of 2.47 mills, and above the rollback rate of 2.2995 mills by 6.54%. The millage rate generates property tax revenues of $14,686,913, which is an increase of $1,184,705 from the FY 2014 property tax revenues.
The proposed budget totals $76.95 million, an increase of $2.49 million due to higher transfers between funds. Excluding transfers, the total budget decreases $70,070. The proposed budget supports existing levels of service while investing in infrastructure and roadway maintenance, neighborhood revitalization and public safety.
Council held budget workshops on July 7, 2014 and August 25, 2014, to discuss the proposed operating and capital budgets, adopted the annual budgets and rates for Solid Waste Collections and Water/Wastewater Utilities on August 12, 2014, and adopted the Acme Improvement District budget and assessment rate on September 9, 2014.
Staff presents a balanced budget for the governmental funds, excluding Acme and balances brought forward, totaling $50,166,098, an increase of $2.39 million from the prior year mainly due to increased interfund transfers. The final proposed budget is approximately $96,100 lower than the budget proposed in the first public hearing on September 9, 2014 with the continuation of four-day operations at the municipal complex.
The proposed budget includes:
· General Fund reserves of 25-30% per Council policy, after allocation of $273,600 in unrestricted fund balance for FY 2015 expenditures
· Rate Stabilization reserves of $1.12 million, after allocation of $665,000 for anticipated FY 2015 legal expenses and transfers out for Roadway Maintenance. This balance assumes that the current year Rate Stabilization allocation of $600,000 for legal expenses is fully expended.
· Emergency Reserves of $2.48 million
· Use of Building Reserves of $462,000
· Funding of:
a) 297 full-time permanent positions, up 1 from amended FY 2014 positions and an increase of 5 from the adopted FY 2014 position count.
b) 2% cost index and 1% merit wage increases for employees, 10% health insurance rise and 5% additional for dental insurance.
· Anticipated carry forward of up to $29 million in unspent General Fund operating and Capital Funds budget balances for ongoing Neighborhood Enhancement and capital projects including reallocation of $2.8 million in budget balances of complete or overfunded projects (net impact of $0) as follows:
a) Add $350,000 to the new Communication & Technology Investment Project from the deferred Infrastructure Maintenance Program
b) Reallocate $250,000 from revised Streetscape and Beautiful Wellington Grant programs to Pedestrian Paths and Roadway Overlay projects
c) Reassign $300,000 in Equine Waste & Environmental Program funding to the Surface Water Management Rehabilitation & Maintenance Program
d) Reassign $127,000 in Wellington Environmental Preserve funding to the new 2014 Acme Renewal & Replacement Program
e) Allocate $589,000 from the Equestrian Master Plan & Trails Project to the expanded Parks, Trails & Open Space project
f) Reallocate $1.19 million from the Water Supply R & R Project to the Wastewater Treatment Plan Project
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, $14.69 million of property tax revenues are generated, as adjusted for discounts. The budget appropriates a total of $50.17 million for Wellington governmental funds (excluding Acme Improvement District budget adopted by Council on September 9, 2014) and carrying forward approximately $28.9 million in capital and $300,000 in General Fund operating project balances.
WELLINGTON FUNDAMENTAL: Responsive Government
RECOMMENDATION: Motion following the public hearing to approve the millage rate and Fiscal Year 2014/2015 budget as presented and authorize staff to make the necessary accounting entries to complete reallocation of prior year operating and capital balances.