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ITEM: RESOLUTIONS ADOPTING PRELIMINARY TRIM RATES FOR WELLINGTON AND THE ACME IMPROVEMENT DISTRICT AS FOLLOWS:
A. RESOLUTION R2014-43 (ADOPTING THE PRELIMINARY AD VALOREM MILLAGE RATE FOR WELLINGTON FOR TRUTH-IN-MILLAGE ("TRIM") PURPOSES WITHIN THE JURISDICTIONAL BOUNDARIES OF WELLINGTON
B. RESOLUTION AC2014-05 (ADOPTING THE PRELIMINARY NON-AD VALOREM ASSESSMENT RATE FOR SURFACE WATER MANAGEMENT ACME IMPROVEMENT DISTRICT FOR TRIM PURPOSES)
REQUEST: Approval of Resolutions Nos. R2014-43 and AC2014-05 for two preliminary TRIM rates as required by law. Rate options A, B or C are shown for the Acme assessment and millage rates pursuant to adoption of the First Amendment to the 2010 Acme Improvement District Water Control Plan:
1. Ad valorem millage rate Resolution No. R2014-43
a. Proposed millage rate of 2.46 mills (.01 mill below the prior year's rate and 6.98% above the rollback rate of 2.30 mills). Provides no ad valorem funding of projects in the Acme Water Control Plan First Amendment.
b. Millage rate of 2.72 mills (.25 mill above the prior year's rate and 18.29% above the rollback rate of 2.30 mills). Provides partial ad valorem funding of projects in the Acme Water Control Plan First Amendment in conjunction with Assessment Rate 2b below.
2. Non-ad valorem assessment for ACME surface water management, parks and roadways Resolution No. AC2014-05
a. Proposed assessment rate of $300.00 per unit (a $100 per unit increase from the prior year). Provides full non-ad valorem funding of projects in the Acme Water Control Plan First Amendment.
b. Assessment rate of $235 per unit (a $35 increase from the prior year). Provides partial non-ad valorem funding of projects in the Acme Water Control Plan First Amendment.
c. Assessment rate of $200 per unit (no change from the prior year). Provides no funding of projects in the Acme Water Control Plan First Amendment.
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EXPLANATION: TRIM rates are due to the Palm Beach County Property Appraiser's office no later than July 30th though the office has requested the rates by July 25th to facilitate submission. The accompanying resolutions are required to set the preliminary millage and non-ad valorem assessment rates to be included on the annual TRIM notice for all taxable property within Wellington and Acme Improvement District.
Council adopted the preliminary rates for Solid Waste Collection and Recycling on July 8, 2014. The final millage and assessment rates will be adopted following the required public hearings in August and September. The Council may adopt final rates below these TRIM rates, but cannot increase assessment rates beyond the preliminary TRIM determination. TRIM rules allow for several rate options as follows (derived from the certified taxable value of $6.31 billion issued by the county on June 26):
· A Rollback Rate of 2.30 mills; providing the same ad valorem revenues as the prior year plus new construction
· A Majority Maximum Rate of 3.37 mills; allowing for a rate equal to the prior year majority max rate plus the state income growth percentage with a simple majority vote
· A 2/3 Vote Maximum Rate of 3.71 mills; equal to 110% of the majority maximum rate
· Each 1/10 of a mill equals approximately $599,000 in additional tax revenue
Staff recommendations for rates are based on the preliminary FY 2015 proposed budget and CIP presented to Council which includes the projects set forth in the Acme Water Control Plan First Amendment for the Acme 10 year Flood Mitigation Program. The preliminary budget for each of the three Flood Mitigation Program funding options are as follows:
a. Acme 10 year Flood Mitigation Program funded fully by Acme Assessment:
2.46 mills and $300 Acme Assessment
Total budget of $79.21 million, $4.75 million or 6.4% higher than the FY 2014 adopted budget of $74.46 million and is balanced at 2.46 mills and a $300 Acme Assessment with a use of approximately $260,000 in General Fund and $281,000 in Acme reserves:
· Governmental Funds total: $50.52 million, up $1.99 million
· Enterprise Funds total: $18.55 million, down $765,000
· Transfers: $10.14 million, up $3.53 million
· Includes a capital program of $9.03 million, up $1.52 million from FY 2014 (included in totals above):
o Governmental Projects: $5.11 million, up $1.78 million for roadway drainage projects
o Enterprise (Water & Wastewater) Projects: $3.92 million, down $266,000 in R & R projects
· 297 permanent positions, up 1 from mid-year amended FY 2014 budget and up 5 from the adopted FY 2014 full-time position count
b. Acme 10 year Flood Mitigation Program funded by .26 millage rate increase and $35 Acme Assessment increase: 2.72 mills and $235 Acme Assessment
Total budget of $79.21 million (same as Option a), $4.75 million or 6.4% higher than the FY 2014 adopted budget of $74.46 million and is balanced at 2.72 mills and a $235 Acme Assessment with a use of approximately $260,000 in General Fund and $313,000 in Acme reserves.
c. No additional funding for Acme 10 year Flood Mitigation Program:
2.46 mills and $200 Acme Assessment
Total budget of $74.3 million, $142,000 or 0.2% less than the FY 2014 adopted budget of $74.46 million and is balanced at 2.46 mills and a $200 Acme Assessment with a use of approximately $260,000 in General Fund and $281,000 in Acme reserves:
· Governmental Funds total: $48.07 million, down $460,000
· Enterprise Funds total: $18.55 million, down $765,000
· Transfers: $7.69 million, up $1.08 million
· Includes a capital program of $6.58 million, down $929,000 from FY 2014 (included in totals above):
o Governmental Projects: $2.67 million, down $663,000 due to one-time pathway project in prior year
o Enterprise (Water & Wastewater) Projects: $3.92 million, down $266,000 in R & R projects
State and tax revenue estimates will continue to be evaluated throughout the budget process and these numbers are likely to change.
BUDGET AMENDMENT REQUIRED: NO
PUBLIC HEARING: NO QUASI-JUDICIAL:
FIRST READING: SECOND READING:
LEGAL SUFFICIENCY: YES
FISCAL IMPACT: Each preliminary proposed rate provides a balanced budget and maintains target levels of reserves.
WELLINGTON FUNDAMENTAL: Protecting our Investment
RECOMMENDATION: Approval of the following resolutions setting TRIM rates for ad-valorem taxes and the non-ad valorem assessment for Acme Improvement District.
1. a. RESOLUTION NO. R2014-43 adopting the preliminary ad valorem millage rate for the Village of Wellington for TRIM purposes at 2.46 mills (.01 mill below the prior year's rate and above the preliminary rollback rate of 2.30 mills)
2. b. ACME RESOLUTION NO. AC2014-05 adopting the preliminary non-ad valorem assessment rate for ACME Improvement District for TRIM purposes at $300.00 (a $100 per unit increase from the prior year)