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ITEM: FIRST PUBLIC HEARING FOR PROPOSED FISCAL YEAR 2025-2026 MILLAGE RATE, BUDGET AND ADOPTION OF THE FISCAL YEAR 2025-2026 CAPITAL IMPROVEMENT PLAN
REQUEST: Council tentative approval of the Fiscal Year 2025-2026 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 18, 2025.
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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, 2025 certified total taxable value of $13.29 billion is applied to calculate the millage rate and ad valorem revenue for the FY 2025-2026 budget. The proposed millage rate of 2.47 mills is the same as the preliminary TRIM rate adopted on June 24, 2025 and 6.36% above the rollback rate of 2.32 mills. The proposed millage rate generates property tax revenues of $31.19 million, which is an increase of $1.77 million from the FY 2024-2025 ad valorem property tax revenue budget.
The proposed expenditure budget for all funds totaling $155.89 million continues Wellington’s commitment to budgeting for sustainability while meeting residents’ needs and local economic challenges. The FY 2025-2026 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 $6.93 million more than the FY 2025 budget of $148.96 million. The increase is attributable to inflationary cost increases, and services of expanded facilities. Use of fund balances totaling $6.98 million is required to balance the budget in the General, Acme, Road Maintenance, Transportation Impact Capital, and Utility Funds.
In addition to a visioning and long-term financial planning workshop in April, Council has held budget workshops on June 23rd and August 7th for discussion of the rates, and the proposed operating and capital budgets. The Acme, Solid Waste and Water & Wastewater Utility budgets were adopted on August 12th, 2025. Staff now presents a balanced budget for the governmental funds, excluding Acme and balances brought forward, totaling $103.61 million, an increase of $10.73 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 2026. The CIP totals $21.79 million for all projects and programs, down $4.24 million from FY 2025. The plan further utilizes prior years’ remaining budgets carried forward and reallocates approximately $1.2 million between projects.
The $103.61 million governmental expenditure budget presented herein for tentative adoption includes:
• A recommended governmental Capital Improvement Plan (CIP) totaling $12.60 million, $2.33 million more than the FY 2025 plan for investment in the PBSO facility expansion, stormwater projects, and equestrian trails.
o $7.17 million in ongoing governmental capital programs
o $5.38 million in one-time capital projects, including the Public Safety Annex and Town Center.
o Use of $238,000 in Transportation Impact Capital Fund reserves for the C8 Canal Multi-Purpose Pathway project
• New and replacement fixed assets of $1.32 million
• General Fund Unassigned Fund Balance at or exceeding the 25-30% range per Council policy with a budgeted use of General Fund balance of $2.30 million:
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 $2.8 million. 20% of excess unassigned fund balance determined by the FY 2025 audit will be added to this reserve during FY 2026
o Environmental, Resilience & Open Space Reserve of $6.0 million. 5% of excess unassigned fund balance determined by the FY 2025 audit will be added to this reserve during FY 2026.
• Building Fund capital reserves of $5.3 million for construction of new offices in the future.
o The Building Fund is presented with a balanced budget for FY 2026 with no increase to reserves
• Reserve use or increases in other governmental funds for tentative adoption are budgeted as follows:
o Road Maintenance Fund appropriates $2.0 million in fund balance
o Recreation Impact Capital Fund increases reserves by $175,000
o Transportation Impact Capital Fund reserves are budgeted to use $238,000
o Debt Service Fund reserves increase by $18,000
• 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 2025, 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 2025
o Building department balances for unsafe structures, and outside inspection services
o Fixed asset purchases not completed in FY 2025
• Personnel funding in the total budget for:
§ 324 permanent positions, up 6, and includes funding for 12 full-time supplemental positions, 12 part-time positions, and 94,000 part-time hours.
o 229 governmental positions, up 4 for new positions in Public Works, and conversions of supplemental positions to permanent status in Tennis
o 29 Building department positions
o 66 permanent positions in the enterprise funds, up 2 in Utilities
o Part-time hours are increasing for custodial maintenance, and recreation and tennis programming
o Funding for 4.5% wage adjustments
o Health insurance increase budgeted 5% higher on January 1, 2026
The required legal advertisement will be placed in local newspapers 2-5 days prior to the second budget hearing, per TRIM requirements. On September 18, 2025, 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: YES
FISCAL IMPACT: At 2.47 mills, $31,185,244 in property tax revenues are generated, as adjusted for discounts. The budget appropriates a total of $103,614,179 for the governmental funds expenditures, excluding Acme.
The FY 2025-2026 budget appropriates a total of $21,793,689 for capital improvement projects in governmental and enterprise funds. Approval of the plan includes redistribution of approximately $1.7 million among previously budgeted capital projects resulting in no net fiscal impact.
WELLINGTON FUNDAMENTAL: Responsive Government
RECOMMENDATION: Tentative adoption of the Fiscal Year 2025-2026 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 18, 2025 for final adoption of the FY 2025-2026 millage, budget and Capital Improvement Plan as presented.