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ITEM: SECOND PUBLIC HEARING TO ADOPT THE FY 2021/2022 MILLAGE RATE AND ANNUAL BUDGET FOR WELLINGTON
I. RESOLUTION NO. R2021-58 (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, 2021 AND ENDING SEPTEMBER 30, 2022; AND PROVIDING AN EFFECTIVE DATE.
II. RESOLUTION NO. R2021-59 (WELLINGTON BUDGET)
A RESOLUTION OF WELLINGTON, FLORIDA’S COUNCIL ADOPTING A BUDGET FOR THE VILLAGE OF WELLINGTON FOR THE FISCAL YEAR COMMENCING OCTOBER 1, 2021 AND ENDING SEPTEMBER 30, 2022; AND PROVIDING AN EFFECTIVE DATE.
REQUEST: Approval of the proposed Fiscal Year 2021/2022 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: Florida Statutes Chapter 200.065 sets forth the procedure to follow for each local government in adoption of the annual property tax millage, levy, and budget. In accordance with these regulations, the June 24, 2021 certified total taxable value of $9.30 billion is applied to calculate the millage rate and ad valorem revenue for the FY 2021/2022 budget. The proposed millage rate of 2.47 mills is the same as the preliminary TRIM rate adopted on July 13, 2021 and 4.53% above the rollback rate of 2.36 mills. The proposed millage rate generates property tax revenues of $21.82 million, which is an increase of $958,000 from FY 2020/2021 property tax revenues.
The proposed budget for all funds totals $133.94 million with an increase of $32.36 million for increased service levels, cost increases and added capital projects.
The second public hearing involves final adoption of the governmental budget excluding Acme and the recommended Capital Improvement Plan for FY 2022. The FY 2022 CIP totals $30.98 million for all governmental and utility capital projects. The Plan further utilizes prior years’ remaining budgets carried forward and reallocates approximately $3.2 million between projects.
The $88.95 million governmental budget presented herein for final adoption includes:
• A recommended governmental Capital Improvement Plan (CIP) totaling $19.34 million, up $14.4 million from FY 2021. The Plan allocates:
o $3.20 million in ongoing capital programs
o $16.15 million in one-time capital projects, including $10.62 million in Sales Surtax projects
o Use of $5.10 million in Facility & Infrastructure Reserves to fund road improvements and Sales Surtax projects
o Use of $3.69 million in ARPA funds received to fund infrastructure and other appropriate uses
o $525,000 in Unassigned General Fund Balance to fund Sales Surtax projects
• New and replacement fixed assets of $1.20 million
• General Fund Unassigned Fund Balance within the 25-30% range per Council policy after budgeted use of $1.21 million for FY 2021, repayment from the Sales Surtax reserves and $2.10 million assigned to balance the FY 2022 budget:
o Use of ARPA funding of $3.69 million received in FY 2021
o Initial Rate Stabilization Reserves of $2.79 million, and further designation of FY 2021 fund balance in excess of 30% at the completion of the FY 2021 audit, Facility & Infrastructure reserve assignment and roll forward of budget balances for projects in progress
o Emergency Reserves of $3.00 million
o Insurance Reserves of $1.53 million
o Facility & Infrastructure Reserves of $500,000 after FY 2022 budgeted use. During FY 2022, 20% of excess unassigned fund balance determined by the FY 2021 audit will be added to this reserve
o Repay General Fund Unassigned balance from Sales Surtax Fund reserves in the amount of $1,480,000 remaining from 2020 project funding
• Reserve use in other funds are budgeted as follows:
o Building Fund uses $1.7 million
o Road Maintenance Fund uses $750,000
o Road Impact Capital Fund uses $293,000
• Roll forward of unspent budget balances for ongoing projects and programs in the following areas:
o Major maintenance, bridge maintenance and capital projects
o Technology services for ongoing peripheral development, cyber security and data storage projects
o CDBG and CDBG CARES program funding, Great Neighborhoods and Home Rehabilitation Grants
o Personnel insurance benefits
o Property Insurance premiums
o Fixed asset purchases and Planning & Zoning consulting not completed in FY 2021
o Capital projects
• Personnel funding in the total budget for:
o 302 permanent positions, up 2, and includes funding for 14 supplemental positions and 92,288 part-time hours. Part-time hours are increasing for recreation programming
§ 236 governmental positions, up 2 for conversions from supplemental and part-time status
§ 66 permanent positions in the Enterprise Funds, no change
o A 2% CPI wage adjustment and 1% average merit increase for all employees. Insurance premiums are projected to rise about 6% on January 1, 2022
BUDGET AMENDMENT REQUIRED: NO
PUBLIC HEARING: YES QUASI-JUDICIAL: NO
FIRST READING: SECOND READING: YES
LEGAL SUFFICIENCY: YES
FISCAL IMPACT: At 2.47 mills, $ 21,821,983 in property tax revenues are generated, as adjusted for discounts. The budget appropriates a total of $88,953,921 for Governmental funds (excluding Acme and balances brought forward).
WELLINGTON FUNDAMENTAL: Responsive Government
RECOMMENDATION: Motion following the public hearing to approve Resolution No. R2021-58 adopting the millage rate and Resolution No. R2021-59 adopting the Fiscal Year 2021/2022 budget as presented and authorization for staff to make the necessary accounting entries to assign and transfer reserves, roll forward and complete reallocation of prior year operating and capital balances.