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ITEM: FIRST PUBLIC HEARING FOR THE PROPOSED FISCAL YEAR 2026-2027 MILLAGE RATE, BUDGET AND ADOPTION OF THE FISCAL YEAR 2026-2027 CAPITAL IMPROVEMENT PLAN
REQUEST: Council tentative approval of the Fiscal Year 2026-2027 proposed millage rate of 2.47 mills and the proposed operating and capital budget including balances brought forward. This is the first public hearing on the proposed budget and the corresponding ad valorem millage rate in accordance with the Wellington Charter and Florida Statutes Chapter 200.065. The second public hearing and adoption is to be held on September 22, 2026.
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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 25, 2026 certified total taxable value of $13.93 billion is applied to calculate the millage rate and ad valorem revenue for the FY 2026-2027 budget. The proposed millage rate of 2.47 mills is the same as the preliminary TRIM rate adopted on June 30, 2026 and 4.72% above the rollback rate of 2.36 mills. The proposed millage rate generates property tax revenues of $32.68 million, which is an increase of $1.49 million from the FY 2025-2026 ad valorem property tax revenue budget.
The proposed expenditure budget for all funds totaling $150.41 million continues Wellington’s commitment to budgeting for sustainability while meeting residents’ needs and local economic challenges. The FY 2026-2027 budget provides funding to maintain exceptional levels of service in road and facility maintenance, recreation programs, special events, community grants, and investment in infrastructure capital improvement. The total budget is proposed at $5.48 million less than the FY 2026 budget of $155.89 million. The decrease is attributable to reduced capital investment, and lower funding of ongoing major maintenance. Use of fund balances totaling $3.12 million is required to balance the budget in the Building, Acme, and Utility Funds.
In addition to a visioning and long-term financial planning workshop in April, Council has held budget workshops on June 29th, August 10th, and September 3rd for discussion of the rates and the proposed budgets. The Acme, Solid Waste and Water & Wastewater Utility budgets were adopted on August 11th, 2026. Staff now presents a balanced budget for the governmental funds, excluding Acme and balances brought forward, totaling $95.80 million, a decrease of $7.81 million from the prior year.
The first public hearing includes tentative adoption of the governmental budget (excluding Acme), and the recommended Capital Improvement Plan for FY 2027. The CIP totals $19.50 million for all projects and programs, down $2.29 million from FY 2026. The plan further utilizes prior years’ remaining budgets carried forward and reallocates approximately $600,000 between projects.
The $95.80 million governmental expenditure budget presented herein for tentative adoption includes:
• A recommended governmental Capital Improvement Plan (CIP) totaling $8.00 million, $4.60 million less than the FY 2026 plan, and invests in stormwater management, facility renewal, equestrian trails, and road and pathway projects.
o All funding is budgeted to ongoing governmental capital programs.
o Transportation Impact and Recreation Impact Capital reserves increase $223,000 and $500,000, respectively, to save for future projects.
• New and replacement fixed assets of $1.10 million
• General Fund Unassigned Fund Balance at or exceeding the 25-30% range per Council policy with no budgeted use of General Fund balance:
o Rate Stabilization Reserves of $2.79 million
o Emergency Reserves of $2.98 million
o Insurance Reserves of $1.53 million
o Facility & Infrastructure Reserves of $10.06 million. 20% of excess unassigned fund balance determined by the FY 2026 audit will be added to this reserve during FY 2027
o Environmental, Resilience & Open Space Reserve of $6.39 million. 5% of excess unassigned fund balance determined by the FY 2026 audit will be added to this reserve during FY 2027.
• Building Fund capital reserves of $5.32 million for construction of new offices in the future.
o The Building Fund requires $600,000 in reserves to balance FY 2027 budgeted expenditures
• Reserve use or increases in other governmental funds for tentative adoption are budgeted as follows:
o Recreation Impact Capital Fund increases reserves by $500,000
o Transportation Impact Capital Fund increases reserves by $223,000
o Debt Service Fund reserves increase by $6,200
• Roll forward of open purchase orders for projects in progress.
• 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 projects not completed in FY 2026, including software enhancements and development, license renewals, and outside technology services
o CDBG and SHIP program funding
o Consulting and studies budgeted but not completed in FY 2026
o Building department balances for unsafe structures, and outside inspection services
o Fixed asset purchases not completed in FY 2026
• Personnel funding in the total budget for:
§ 320 permanent positions, down 4, and includes funding for 11 full-time supplemental positions, 8 part-time positions, and 95,800 part-time hours.
o 225 governmental positions, eliminating vacant positions in Planning, Financial Services, Parks, and Communications
o 29 Building department positions
o 66 permanent positions in the enterprise funds, no change
o Part-time hours are budgeted for custodial maintenance, events, and recreation and tennis programming
o Funding for 4% wage adjustments
o Health insurance increase budgeted 5% higher on January 1, 2027.
The required legal advertisement will be on the county’s legal advertising site 2-5 days prior to the second budget hearing, per TRIM requirements. On September 22, 2026, the final budget and ad valorem millage rate will be adopted.
BUDGET AMENDMENT REQUIRED: NO
PUBLIC HEARING: YES QUASI-JUDICIAL:
FIRST READING: SECOND READING:
LEGAL SUFFICIENCY:
FISCAL IMPACT: At 2.47 mills, $32,679,313 in property tax revenues are generated, as adjusted for discounts. The budget appropriates a total of $95,803,904 in expenditures for the governmental funds, excluding Acme.
The FY 2026-2027 budget appropriates a total of $19,500,000 for capital improvement projects in governmental and enterprise funds. Approval of the plan includes redistribution of approximately $600,000 million among previously budgeted capital projects resulting in no net fiscal impact.
WELLINGTON FUNDAMENTAL: Responsive Government
RECOMMENDATION: Tentative adoption of the Fiscal Year 2026-2027 millage rate and budget, approval to advertise the second Public Hearing, and authorization for staff to make the necessary accounting entries to complete reallocation of prior year Operating and Capital Outlay balances and commitment of fund balances. The second hearing will be held on September 22, 2026 for final adoption of the FY 2026-2027 millage, budget and Capital Improvement Plan as presented.