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ITEM: WELLINGTON FISCAL YEAR 2026/2027 LONG RANGE FINANCIAL PLAN
REQUEST: Wellington staff will present the Fiscal Year 2026/2027 Long Range Financial Plan.
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EXPLANATION: We present the updated Long Range Financial Plan each year to help with the budget process. The analyses, forecasts, plans and studies, and policies we consider in preparing the Long Range Financial Plan are outlined the document. The Financial Condition Assessment summarizes various financial conditions that are part of the annual audit. Overall, we are in very good financial condition. Yes, there are some specific indicators that reflect potential trends we will specifically watch.
Given this information, we present the Recommendations as part of the Long Range Financial plan. We also include the 5 Year Forecast of Revenues and Expenditures for the General Fund and we summarize the assumptions and projections used to prepare that. And, YES, these assumptions WILL change. We take a very conservative approach in our assumptions and projections in order to give you the most flexibility to address “things” that come up.
The Long-Range Financial Plan also considers our other funds. We are working to manage challenges in the Utility Fund with funding in the form of very low-interest loans and grant funding through the State Revolving Loan Fund. Currently, the Meter Replacement Project will start this summer. We are also working to prepare a grant application for funding of the Membrane Replacement Project which is in progress and address the EPA’s newly created standards for drinking water PFAS (polyfluoroalkyl substances).
The proposed Fiscal Year 2026/2027 Solid Waste Fund includes the proposed rates for curbside and containerized. The good news is that the annual increase remains low and is projected to remain consistent or lower than the annual contract increases for these services. Overall, the Solid Waste rate increases cover the annual contract increases while maintaining fund balance.
Council has set a target for unassigned general fund balance between 25% and 30% of subsequent year’s general fund expenditures. This helps provide for sound fiscal management and is the cornerstone of our rock-solid financial analysis. As we have seen through multiple events and emergencies just within the past five years, having strong financial resources provides continuity of operations and gives you options that many local governments simply do not have. This financial security does not come accidentally. The entire team starting with Ms. Fischer and Ms. Acevedo and continuing with each and every department understands the fiscal responsibility in successfully and safely managing their departmental budgets.
We will soon be presenting Fiscal Year 2026/2027 budgetary information to you for your consideration and approval. We understand this responsibility and strive to give you accurate information to help you make sound decisions.
One area that greatly impacts the total budget is Capital Projects. We maintain 5- and 10-year Capital Improvement Plans (CIP) to manage these projects, and those plans are updated annually as part of the budget process. Yesterday, we reviewed some of the major capital projects and plans and we will have a dedicated workshop for Capital as part of the annual budget process. It is important to note that while we have some major projects that garner much attention, we have “routine”, year in and year out projects and major maintenance work that truly is the backbone of the Village’s infrastructure maintenance, repair, and renovation. Of note, this year we continue incorporating the ACME Pump Station Improvement Program, a major renovation and replacement program. Much of this work and these projects are not “glamorous” but they enable you to rest easy knowing that critical infrastructure is being responsibly maintained. From road resurfacing, pathway maintenance, neighborhood pipe lining, updating neighborhood parks, replacing roofs, HVAC, painting, pressure washing, landscape maintenance, and more, this work and projects are what you most often see and will notice if there is a problem.
The Long-Range Financial Plan also includes Financial Policies we observe.
BUDGET AMENDMENT REQUIRED: NO
PUBLIC HEARING: NO QUASI-JUDICIAL:
FIRST READING: SECOND READING:
LEGAL SUFFICIENCY: YES
FISCAL IMPACT: None at this time.
WELLINGTON FUNDAMENTAL: Responsive Government
RECOMMENDATION: Wellington staff will present the Fiscal Year 2026/2027 Long Range Financial Plan.