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ITEM: SECOND PUBLIC HEARING TO ADOPT THE FISCAL YEAR 2024-2025 MILLAGE RATE AND ANNUAL BUDGET FOR WELLINGTON
I. RESOLUTION NO. R2024-50 (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, 2024 AND ENDING SEPTEMBER 30, 2025; AND PROVIDING AN EFFECTIVE DATE.
II. RESOLUTION NO. R2024- 51 (WELLINGTON BUDGET)
A RESOLUTION OF WELLINGTON, FLORIDA’S COUNCIL ADOPTING A BUDGET FOR THE VILLAGE OF WELLINGTON FOR THE FISCAL YEAR COMMENCING OCTOBER 1, 2024 AND ENDING SEPTEMBER 30, 2025; AND PROVIDING AN EFFECTIVE DATE.
REQUEST: Approval of the proposed Fiscal Year 2024-2025 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 26, 2024 certified total taxable value of $12.54 billion is applied to calculate the millage rate and ad valorem revenue for the FY 2024-2025 budget. The proposed millage rate of 2.47 mills is the same as the preliminary TRIM rate adopted on July 16, 2024 and 8.48% above the rollback rate of 2.28 mills. The proposed millage rate generates property tax revenues of $29.42 million, which is an increase of $2.26 million from the FY 2023-2024 property tax revenue budget.
The proposed expenditure budget for all funds totaling $148.01 million continues Wellington’s commitment to stable budgeting for sustainability while meeting residents’ needs and local economic challenges. The FY 2024-2025 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 $10.31 million more than the FY 2024 budget of $137.70 million. The increase is attributable to inflationary cost increases, and primarily to the cost of needed Utility capital projects. Use of fund balances totaling $1.34 million is required to balance the budget in the Acme and Recreation Impact Capital Funds.
In addition to a visioning and long-term financial planning workshop in May, Council has held budget workshops on July 15th, August 9th, and August 12th for discussion of the proposed operating and capital budgets. The Acme, Solid Waste and Water & Wastewater Utility budgets were adopted on August 13th, 2024. Staff now presents a balanced budget for the governmental funds, excluding Acme and balances brought forward, totaling $92.28 million, a decrease of $243,000 from the prior year.
The second public hearing includes final adoption of the governmental budget (excluding Acme), and the recommended Capital Improvement Plan for FY 2025. The CIP totals $26.03 million for all projects and programs, up $4.94 million from FY 2024. The plan further utilizes prior years’ remaining budgets carried forward and reallocates approximately $2.0 million between projects.
The $92.28 million governmental expenditure budget presented herein for tentative adoption includes:
• A recommended governmental Capital Improvement Plan (CIP) totaling $10.27 million, $3.42 million less than the FY 2024 plan due to the end of the local Sales Surtax.
o $3.52 million in ongoing governmental capital programs
o $6.75 million in one-time capital projects, including $3.5 million for the roundabout at Lake Worth Road & 120th.
o Use of $700,000 in Recreation Impact Capital Fund reserves for the Tennis Center Expansion
• New and replacement fixed assets of $1.05 million
• General Fund Unassigned Fund Balance at or exceeding the 25-30% range per Council policy with no budgeted use of General Fund balance in FY 2025:
o Rate Stabilization Reserves of $2.79 million
o Emergency Reserves of $3.00 million
o Insurance Reserves of $1.53 million
o Facility & Infrastructure Reserves of $490,000. 20% of excess unassigned fund balance determined by the FY 2024 audit will be added to this reserve during FY 2025
o Accounting entries to close the Professional Centre Fund will transfer all LWPC fund balance to the General Fund Unassigned Fund Balance on 9/30/2024, approximately $460,000 is estimated to be available in the fund
• Building Fund capital reserves of $5.3 million for construction of new offices in the future. The Building Fund is budgeted to increase operating reserves by about $200,000 in FY 2025
• Reserve use or increases in other governmental funds are budgeted as follows:
o Recreation Impact Capital Fund uses $700,000 in fund reserves
o Sales Surtax Capital Fund increases fund reserves by $177,000
o Road Impact Capital Fund reserves are budgeted to add $226,000
• 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 projects not completed in FY 2024, including software enhancements, additions, and integration, GIS development, and ERP contract renewal
o CDBG, CDBG CARES, and SHIP program funding
o Consulting and studies for strategic and financial planning
o Insurance premiums
o Building department balances for unsafe structures, plan review software development, and workstations
o Utility engineering and GIS services
o Fixed asset purchases not completed in FY 2024
• Personnel funding in the total budget for:
§ 318 permanent positions, up 4, and includes funding for 14 full-time supplemental positions, 9 part-time positions, and 69,000 part-time hours.
o 225 governmental positions, up 5 for transfers in from LWPC and Solid Waste roadside refuse collection and 1 position addition in Code Compliance; 4 supplemental positions are converted to permanent or eliminated
o 29 Building department positions, 3 added to address higher inspection and permitting activity
o 64 permanent positions in the enterprise funds, down for the transfers out to Public Works and administrative functions
o Part-time hours are decreasing for recreation programming
o Funding for 4.5% wage adjustments
o Health and Dental insurance increases budgeted 5% higher on January 1, 2025
The required legal advertisement ran in the Palm Beach County Legal Advertising website 2-5 days prior to this hearing, per TRIM requirements.
BUDGET AMENDMENT REQUIRED: NO
PUBLIC HEARING: YES QUASI-JUDICIAL:
FIRST READING: SECOND READING:
LEGAL SUFFICIENCY: YES
FISCAL IMPACT: At 2.47 mills, $29,416,786 in property tax revenues are generated, as adjusted for discounts. The budget appropriates a total of $92,280,993 for the governmental funds expenditures, excluding Acme and additions to fund balances.
The FY 2024-2025 budget appropriates a total of $26.03 million for capital improvement projects in governmental and enterprise funds. Approval of the plan includes redistribution of approximately $2.0 million among previously budgeted capital projects resulting in no net fiscal impact.
WELLINGTON FUNDAMENTAL: Responsive Government
RECOMMENDATION: Final adoption of the Fiscal Year 2024-2025 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, closure of the Professional Centre Fund with transfer back to the General Fund, and commitment of fund balances.