village of wellington, florida

The solid waste fund repaid $2 million to the general fund for monies borrowed after the 2004 and 2005hurricanes. The solid waste fund refunded approximately $2.26 million worth of assessments that were collected in2006 related to an additional hurricane assessment that was levied after the 2004 hurricane season.Governmental Funds Financial AnalysisThe focus of Wellington’s governmental funds is to provide information on near-term inflows, outflows andbalances of spendable resources. Such information is useful in assessing financing requirements. Inparticular, unreserved fund balance may serve as a useful measure of a government’s net resources availablefor spending at the end of the fiscal year. As of the end of the current fiscal year, Wellington’s governmentalfunds reported combined ending fund balances of $83,178,063, an increase of $6,124,445 over the prior year.The majority of the increase is due to intergovernmental revenues of $2.9 million related to the Section 24impoundment reimbursements from South Florida Water Management District. In addition, the solid wastefund repaid $2 million to the general fund for monies borrowed after recent hurricanes.The unreserved and undesignated fund balance of $20,717,072 is available for spending at the Village’sdiscretion, including uses earmarked by the Village that do not meet the criteria for a designation. Theremainder of fund balance ($62,460,991) is reserved or designated to indicate that it is not available for newspending because it has already been committed to liquidate contracts and purchase orders of the prior period($9,812,374), for capital improvements ($36,198,346), to pay debt service ($75,126), for future disasterrecovery ($3,000,000), for funding future expenditures ($5,540,000) and stabilizing millage or rate increases($2,366,078), or other specified purposes ($5,469,067).The general fund is the main operating fund of the Village of Wellington. At the end of the current fiscal year,unreserved and undesignated fund balance of the general fund was $12,671,573, while the total fund balancewas $24,224,276. As a measure of the general fund’s liquidity, it is useful to compare unreserved fund balanceto total general fund expenditures. Unreserved and undesignated fund balance represents approximately 37%of total 2009/2010 general fund budgeted expenditures. Total revenues in the general fund were $32,509,795which represents a decrease of approximately $2.1 million from the prior year. This is mostly due to adecrease in ad valorem taxes of $1.4 million and from decreased intergovernmental revenues of $276,000The planning, zoning and building fund is used to account for operations of the planning and buildingfunctions of the Village. At the end of the current fiscal year, $3,329,608 was reserved for future buildingdepartment expenditures. Building permit fees may only be used for building and inspection servicesexpenditures. Revenues for the fund were $3,364,700 and $3,694,070 for fiscal years 2009 and 2008,respectively. This represents a decrease of $329,370, or 8.9% from 2008. During the year, building permitactivity decreased by $132,098 due to decreased activity in the housing market due to the economic downturnthat was experienced throughout Palm Beach County, Florida, and most of the country. The Villageanticipates continued decreases in new development after 2009. Investment income also decreased $126,081from the prior year.The recreation programs fund is used to account for operations relating to recreation facilities. At the end ofthe current fiscal year, unreserved and undesignated fund balance of the recreation programs fund was$4,833,785, while the total fund balance was $5,346,458. Unreserved and undesignated fund balancerepresents over 100% of total 2009/2010 recreation program fund budgeted expenditures. Revenues were$2,819,194 and $2,081,764 for fiscal years 2009 and 2008, respectively. This represents an increase of$737,430, or 35.4% over 2008 mostly due to reimbursements from federal and local agencies related todisaster recovery expenditures incurred for hurricane events that took place during 2004 and 2005 received inthe prior year.9