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ITEM: RESOLUTION NO. R2025-19 (FY 2024-2025 MID-YEAR BUDGET AMENDMENT)
A RESOLUTION OF WELLINGTON, FLORIDA’S COUNCIL AMENDING THE FISCAL YEAR 2024-2025 GENERAL FUND, GOVERNMENTAL CAPITAL FUND, SOLID WASTE FUND, SHIP FUND, AND SALES SURTAX CAPITAL FUND BUDGETS FOR MID-YEAR PROJECT AND PROGRAM CHANGES; AND PROVIDING AN EFFECTIVE DATE.
REQUEST: Approval of Resolution No. R2025-19 amending the FY 2024-2025 budgets for the General Fund, Governmental Capital Fund, Solid Waste Fund, SHIP Fund, and Sales Surtax Funds 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, insurance proceeds, storm debris removal, and capital projects in progress, are requested to complete Fiscal Year 2024-2025 within budget.
A. Current year budget estimates for Tennis Program Contracts were based on participation projections made in the prior year. 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, and will generate up to $110,000 in corresponding revenues, adding $30,000 to projected General Fund balance.
B. In October 2024, the field lighting equipment at Olympia Park was vandalized. Property insurance partially reimbursed the expenses in the amount of $54,900. The budget amendment will increase the maintenance budget to offset the cost of repairs.
C. The agreement with Wellington Athletics to construct the Sports Academy with bond funding allows for the interest earned on the bond proceeds to be allocated to the project as received. Over the past two years, approximately $2.7 million in interest earnings has accumulated on the unspent proceeds. Additionally, about $13,000 in debt issuance costs was refunded after bond issuance. The budget amendment will allocate the bond interest earned and debt issuance refund to the Sports Academy project expenses.
D. The Village incurred debris removal expenditures of $868,000 for Hurricane Milton since October 2024. The budget amendment will appropriate funds in the Reserve for Emergencies for transfer to the Solid Waste fund to cover the expenses. Application to FEMA for reimbursement is in progress, and the FEMA reimbursements will be returned to the Reserve upon receipt.
E. During the fiscal year, the Village received notification of a higher allocation of $13,681 in SHIP funding. Additionally, a repayment of a homeowner SHIP grant we received in the amount of $26,060. A revenue amendment totaling $39,741 will allocate the added revenues to the SHIP home rehabilitation expense to provide additional grants.
F. The FY 2024-2025 budget for Sales Surtax revenues was prepared with the assumption that the maximum allowable collections would be reached in December 2024 and the surtax would end. The maximum was not reached in 2024, and will therefore continue throughout 2025. This is expected to result in an additional $4,500,000 in Sales Surtax revenue through the end of the fiscal year. The added revenue may be appropriated to future Sales Surtax capital project expense for assignment to surtax projects as received and project needs identified.
BUDGET AMENDMENT REQUIRED: YES
PUBLIC HEARING: NO QUASI-JUDICIAL:
FIRST READING: SECOND READING:
LEGAL SUFFICIENCY:
FISCAL IMPACT: The budget amendment will increase the General, Governmental Capital, Solid Waste, SHIP, and Sales Surtax Funds by a total budget of $9,136,757 for all adjustments.
A. Increase the General Fund expenditure budget by $80,000 in recreation program contracts, $54,900 in lighting repairs, and appropriate $868,000 in emergency reserve funds for transfer to the Solid Waste Fund. Associated revenue increases will result in addition to fund balance of $30,000.
B. Appropriate $2,696,116 in Governmental Capital Fund balance and interest earnings to the Wellington Sports Academy capital project.
C. Transfer in $868,000 from the General Fund Reserve for Emergencies and increase the debris removal budget in the Solid Waste Fund.
D. Increase the SHIP Fund revenue and Home Rehabilitation expenditure budgets by $39,741.
E. Increase the Sales Surtax Capital Fund revenue and capital projects expenditure budget by $4,500,000.
WELLINGTON FUNDAMENTAL: Responsive Government
RECOMMENDATION: Approval of Resolution No. R2025-19 amending the FY 2024-2025 budgets for the General Fund, Governmental Capital Fund, Solid Waste Fund, SHIP Fund, and Sales Surtax Funds as presented for a total budget increase of $9,136,757.