STATE OF THE CITY

Jan. 26, 2010

General

The overall condition of Wellington is good. That is not to say that we do not have our issues; however, despite the economy and recognizing that we’ve made significant cuts over the past year, our fiscal position is good, and we are making progress on our infrastructure. We are seeing real progress on capital projects as the planning that has occurred over the last two years is bearing fruit.

Two significant projects that involve much more than new construction are our Safe Neighborhoods Initiative and our Economic Development Program.

Safe Neighborhoods

The Safe Neighborhoods program was instituted a year ago to improve the condition of property, reduce crime and engage residents in target neighborhoods in Wellington. The addition of our Community Advocates and additional law enforcement has paid dividends. Crime rates are down in the transitional neighborhoods. Residents are using the Safe Neighborhoods resources. Here are some highlights:

Formation of Neighborhood Watch Groups
More than 360 people have taken advantage of our Hometown Preservation forums, and it has been so successful that it is being copied in other cities.
Tutoring and targeted recreation programs have been implemented, and the programs are growing.
We are preparing to open our second neighborhood office in the Goldenrod/Hyacinth neighborhood.
The first of the repaving projects has been completed.
Design and permitting of streetlights is nearing completion, and the installation of the lights is funded.
The first neighborhood defensive projects have been completed, and the defensive roadway project’s design is nearing completion
Finally, in partnership with the Boys and Girls Club, we are moving closer to relocating the Boys and Girls club to the Wellington Trace/White Pine neighborhood.

Economic Development

Economic Development is our cornerstone of building toward the future. In these difficult economic times, a great deal of effort has been put toward amending our business climate to support existing businesses. We also have worked to make Wellington easily accessible to new businesses. We have:

Amended the sign code to allow greater visibility for existing businesses, in cooperation with both area chambers of commerce.
Implemented expedited permitting at the request of the Business Development Board.
Created flexible zoning regulations for the Pierson Road business parks.
Adopted amendments to the Equestrian Overlay Zoning District.

In the near future you will see:

The Mixed Use Zoning District covering the commercial pods of the original PUD making its way through the approval process and coming to council in April.
The Medical Arts Zoning District going to PZAB in February. It will be the key to building upon “businesses that are family friendly.

Wellington has been aggressive in going after grant money for projects. The Neighborhood Renaissance, which identifies troubled properties to purchase with Neighborhood Stabilization Program money, is moving forward with a $750,000 grant. We expect to bring individual neighborhood plans to council around April.

We have received $6 million in grants in the last year, and we have $8 million in additional applications pending. We do not expect to get all of this, but we do expect significant grant dollars. We are evaluating a plan to separate ourselves from the county Community Development Block Grant process and obtain these funds on our own. We also are working on a $300,000 grant for the Boys and Girls Club.

The principal concept of the Economic Development Program is “A Great Hometown.” We are looking to build on our strengths and to attract businesses that contribute to our family-oriented community. One of the measures of the success of EDI is that both chambers of commerce have started economic development programs and are working with us.

Capital Projects

We are making a substantial investment in capital projects. The most visible projects are the Municipal Complex, the Amphitheater, and Scott’s Place. Together, they comprise our Town Center and give Wellington the gathering place it has been lacking. While those are the most visible new projects, they are not the largest nor are they the ones with the most impact on the city. There are over $77 million of previously funded projects underway and more than $14 million worth of fiscal year 2010 projects in process. Here’s some what you will get for your money:

Section 24 Wetland, which will be used for flood control and water quality improvement. This $18 million project was funded by the South Florida Water Management District in a cooperative agreement with Wellington.
Wastewater Treatment Plant expansion: This is a $22 million project funded through capacity charges that updates our 35-year-old sewage plant.
Water Meter Replacement and WiFi Network: This $4 million project replaced our original water meters and added the ability to control our lift stations and drainage pumps remotely.
Aquatic Complex Retrofit: This is a $2 million project that will extend the useful life of the pool by at least 20 years and is being done at about half the cost of relocating the pool.
Canal Improvements: Tropical Storm Fay identified problems with our ability to move water. We have completed widening of the C-2 Canal and are scheduled to begin work on the C-8 Canal.
Roadways: There has been a major investment in road repairs, and the next step will be the awarding of the Forest Hill contract, estimated at more than $8 million. This project will resurface the road and add drainage and should ensure that the road needs no major work for the next 20 years.

Capital Maintenance Plans: A significant part of our capital spending each year is actually ongoing maintenance. In the past, capital projects were evaluated on a year by year basis. We simply cannot go into the future with that model. We have developed long-term capital maintenance plans for the following:

Utility System, which outlines maintenance and replacement for our distribution and collection system and the water and sewer plants.
Roadway System. By assessing the general condition of all roadways, a comprehensive repair and replacement plan was developed. The work just completed at Wellington Trace and Greenview Shores to install a fully functioning drainage system, widen sidewalks and resurface the road was an outgrowth of the plan. Drainage: We have prepared a plan to upgrade our drainage pump stations to provide operational flexibility and to widen the canals to better move water through the system.
Facilities: We looked at the life cycles of all our facilities and developed a repair and replacement schedule that is designed to do the most needed repairs first. That plan identified work on the Community Center and Village Park gym as priorities.
Swale Maintenance Plan: Like most municipalities, Wellington has not historically maintained roadway swales in the neighborhoods. We are doing a cost benefit analysis to determine if we can reduce roadway maintenance and repair costs by implementing a swale maintenance program
The Capital Maintenance Plan has one other feature. In order for a project to become a part of the plan it must:
1. Reduce operating costs
2. Preserve or extend the life of an asset
3. Threaten life safety
4. Be required by a regulatory process.

We already are seeing a return on our planning and investments. The water meter replacement project has a projected return of about $1 million per year and an average expected life cycle of 12 years.

Budget

At the moment we are on target with revenue collections; however, the state has recently lowered their revenue projections and that will lower our state revenue. State fund losses could be as much as a million dollars. We are making the necessary adjustments to prepare for that shortfall. Our current expenditures are about 10% below projections.

As you recall, our assessed value dropped by 15 percent last year, and we expect another 15 percent drop this year. Based on projected revenue losses both in state revenue and ad valorem revenue, we expect to present a budget of between $75 and $78 million for Fiscal Year 2011. We should plan on being at the lower end. That represents a spending reduction of between $5 and $8 million. A significant part of next year’s proposed road capital maintenance plan will be funded through a transfer of funds currently budgeted for Forest Hill Boulevard improvements. We received a $5 million transportation stimulus grant for Forest Hill and will be able to transfer that money into the FY 11 roadway plan.

Looking forward, we expect to see a continued drop in assessed values and in ad valorem revenues through at least 2013. The new normal for government will be declining revenues through the near term. After recovery, we can expect revenue to grow at a pace slower than the annual consumer price index. This is not a gloom and doom projection. It is a simple recognition that tax caps will constrain revenues.

As we told you last year, we cannot expect to maintain service at current levels into the future. Based on setting the current millage rate at 2.5, the upper limit will not be as high as 14 million; however, not going to the roll back rate also raised the lower end of the range. We will have more specific numbers during the budget process.