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ITEM: RESOLUTION NO. R2024-26 (FY 2023/2024 MID-YEAR BUDGET AMENDMENT)
A RESOLUTION OF WELLINGTON, FLORIDA’S COUNCIL AMENDING THE FISCAL YEAR 2023/2024 GENERAL FUND, ACME FUND, PROFESSIONAL CENTRE FUND, AND ROAD IMPACT CAPITAL FUND BUDGETS; REALLOCATING UTILITIES CAPITAL PROJECT BUDGETS; AND PROVIDING AN EFFECTIVE DATE.
REQUEST: Approval of Resolution No. R2024-26 amending the FY 2023/2024 General Fund, Acme Fund, Professional Centre Fund, Utilities, and Road Impact Fund budgets as presented.
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EXPLANATION: Budget amendments required during the fiscal year to maintain operations are presented here as a combined mid-year budget amendment. Adjustments to the budgets for Tennis programs, the Lake Wellington Professional Centre demolition, Acme property assessments, Utilities emergency expense, Utilities capital expense, and Road Impact capital project expense are requested to complete Fiscal Year 2023/2024 within budget and fund additional projects.
A. Current year budget estimates for Tennis Program Contracts were based on participation projections made in early 2023. Since that time, Tennis programs have experienced higher participation and program contractor costs than initially forecast. Based on revised projections for the remainder of the fiscal year, an additional $80,000 in program contractor expense is expected, which will generate approximately $110,000 in additional program revenues. The revenue collected in excess of expenditures for the recreation contracts will reduce the budgeted use of fund balance in the General Fund by $30,000.
B. The Lake Wellington Professional Centre (LWPC) leasing operations ceased on December 31, 2023. Prior to the closure, lease revenues did not meet the budgeted revenue total, falling short by $179,000. Additionally, demolition expenses exceeded the adopted expense budget by $118,000. This mid-year budget amendment includes the transfer of $297,000 from the General Fund Unassigned Fund Balance to the balance the Professional Centre Fund. All remaining LWPC assets and values will be reassigned to the General Fund as part of the fiscal year-end closing process.
C. In November 2023, Council approved the Acme Improvement District purchase of two parcels formerly owned by the Corepoint Corporation. Current and delinquent taxes on the properties totaling almost $48,000 were not included in the adopted budget. Appropriation of $48,000 in Acme Fund reserve balances is requested in this budget amendment to cover the property assessment payments.
D. In February 2024, the Water Treatment Plant Membrane Plant #1 incurred emergency expenses for a power feed failure. Insurance proceeds totaling $241,000 have been received to reimburse generator rental, fuel, and repair expenses. This budget amendment will increase the Utilities Fund revenue budget for the insurance proceeds and the expenditure budget for the repair costs by $241,000.
E. The Peaceful Waters Sanctuary is in pressing need of re-dredging to restore the wetland and provide an attractive habitat for wildlife. Utility capital projects have been reassessed to prioritize funding and reallocate budgets to expedite the Peaceful Waters restoration project. Two Water Reclamation Facility projects, Generator Fuel System Improvements and the Clarifier Rehabilitation Program, totaling $400,000 are requested to be deferred in the 10-year capital plan and the project budgets reallocated to the Peaceful Waters Re-dredging Project.
F. Wellington is working with the Palm Beach County School Board to install a traffic signal on Lake Worth Road at the Isles View Drive intersection to address Polo Park Middle School traffic. The School Board has agreed to share the cost of the signal, estimated at $500,000, with Wellington. This budget amendment will allocate $250,000 in Road Impact Fund Balance, and budget the School Board contribution of $250,000 to provide funding for the project.
BUDGET AMENDMENT REQUIRED: YES
PUBLIC HEARING: NO QUASI-JUDICIAL:
FIRST READING: SECOND READING:
LEGAL SUFFICIENCY:
FISCAL IMPACT: The budget amendment will increase the General, Professional Centre (LWPC), Acme, Utilities, and Road Impact Capital funds budgets by a total of $1,284,000 for all adjustments.
A. Increase the General Fund expenditure budget by $80,000 in recreation program contracts and appropriate General Fund Balance of $297,000 for transfer to the LWPC Fund. Higher recreation program revenues will offset the appropriation of General Fund Balance.
B. Adjust the LWPC revenue budget down by $179,000, and transfer in $297,000 from the General Fund; increasing the expenditure budget by $118,000 for building demolition costs.
C. Appropriate $48,000 in Acme Fund balance for higher property assessment payments.
D. Budget for $241,000 in insurance proceeds in the Utility Fund and emergency expense, and reallocate capital project budgets to fund the Peaceful Waters Re-dredging project.
E. Budget $500,000 for the Lake Worth Road & Isles View Drive Signal project expense, funded by $250,000 in Road Impact Capital fund balance and $250,000 in School Board matching funds.
WELLINGTON FUNDAMENTAL: Responsive Government
RECOMMENDATION: Approval of Resolution No. R2024-26 amending the FY 2023/2024 General Fund, Acme Fund, Professional Centre Fund, Utilities Fund, and Road Impact Capital Fund budgets as presented for a total budget increase of $1,284,000.