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Home My WebLink About04/01/2025 09.E. Community at a Crossroads presentation r:- `y ^� ljlt ii! s . BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. 9.E. For Meeting of: April 1, 2025 ITEM TITLE: Community at a Crossroads presentation SUBMITTED BY: Vicki Baker, City Manager SUMMARY EXPLANATION: Vicki will share the Community at a Crossroads presentation that she gave to the Rotary Clubs and will be using at the town halls. ITEM BUDGETED: No STRATEGIC PRIORITY 24-25: An Engaged Yakima RECOMMENDATION: ATTACHMENTS: Yakima_Budget_Presentation_vb_Rotary.pdf 129 r,—N •y11 a..t ` `Y� 1�j,f,4' i` �fI ! T v. ,..... ./ .,,..„..,„„„,_.:,,_, 2025-2026 Communityat a Crossroads Vicki Baker, Yakima City Manager Vicki.B aker@yakimawa.gov 130 ouTLETMA 1 % F Who am le �� j - U ,� ,o, ,, 0, 1 otuiu i o O U , I-�`)0 1 0 f�fR4? � %ri,j ioi• 1\ rOioionuo1(/b, ngiotoin 1110101 J,j� '9l CR1MC'� if )7,. .e .... IY f imemema _Y1r••a+ • ]CsD j T. • CEJTYEBRJ �.� '� RK�1' �� mat Gum CIOSAL GEISER 'ar ++ A ( _ • a it r� —_ . is,.is - -V. . , . -- o i y n cenuf r . ' ,. t. 131 Page 2 Why am I here? Personal experiences Concern Mindset Investment Long term vision and stability Crazy? SIX MONTHS ON THE JOB Setting stage a for a vibrant Yakima g Safe & Healthy Yakima Reduce the number of people living on the streets ran L „ , Crime Reduction (leadership) Safe Infrastructure (Lighting) Fire prevention through design - - - City of Yakima A Resilient Yakima Er 'agit Design, Build & Maintain Robust Infrastructure PrIritie °- Streamline City Processes _ = Build capacity to deliver on budgeted expectations -. - r° ..p.rT . Adopt Sustainable Budgeting Practices —---� � jejit Diversify and Focus on Economic Development Build and Leverage Local and regional partnerships 133 Page 4 STRATEGIC PRIORITIES Setting stage a for a vibrant Yakima g A Thriving Yakima nF zo Reduce Homelessness Become an attractive tourist and business destination ' '�`a'- Promote Yakima's unique culture City of Maximize current assets in the community Yakima Sirm.agi Improve opportunities for youth and families Priorities •nQ: ,.rm� Become a connected community An Engaged Yakima ` �' '�"-atop g arm:irmeigrrwo ' ``` Foster community ownership Promote a positive community image Develop a culture of two-way communication Page 5 134 City of Yakima Team Hard Working Dedicated True Public Servants Invested They Care Thankless jobs Essential services (water, 911 , snow, play in the park) Page 6 "Government" 135 ,, New Team Member t n. fit ,:. ; ,---, Assistant City Manager Lika . "4,--'74- - -, _„. .--_,_ _ _- 41_ Gary BaLLew, CEcD Ram --swiftift - - s 1. '�_ .z -Bachelor of Arts from WSU in hotel and restaurant M__ L- t •�.. administration I _ c.sm- l=-m -Bachelor of Science from WSU in civil and environmental iiipmesimorr i engineering Oa r _ ` 1 -Master of Science from WSU in environmental engineering IOW -2000-2006 Deputy County Administrator for Benton County rosolb.* -2006 Economic Development Mgr. for .....- r � = -2013-2015 Executive Director of e Wine Science Center -7 years as Port of Pasco's director of ED 1111111111 -2020 VP of Econ. Dev. for Greater Spokane 136 Carrying forward a positive vision ADOPT A BLOCK PROGRAM DOWNTOWN REVITALIZATION AIRPORT MODERNIZATION AND REFOCUS MILL SITE - NEW ENERGY BUSINESS FRIENDLY ENVIRONMENT CULTURE OF POSITIVE ENERGY, CUSTOMER SERVICE, AND "CAN DO" ATTITUDE PARTNERSHIPS AND RELATIONSHIPS LISTENING TO OUR COMMUNITY GROWTH AND POTENTIAL! 137 Pages Community at a Crossroads ? All City City Funds Funds I Government Proprietary Fiduciary al General Fund Purpose (examples): —General Fund — Enterprise Special Revenue — restricted externallyI Utility Tax p Sales Tax (Streets, Convention Center) Property Tax Capital — for all non-proprietary capital — Special — Internal Debt — for all non-proprietary debt Revenue Service Enterprise Capital — business-like with external customers — Internal Service — internal customers Fiduciary ,,' — Debt - not our money (Cemetery Trust) Pal 10; 139 y :• - �: � Where doesyourpropertytax dollargo ? ir ',..,,,ti „_r� Taxing entities for the properties in the Yakima School District 'l RPORAT3) �t`'xkx,‘,,x,,-- '' City of Yakima tax code area 331, 333, 334, 335, and 349 I i ) L� 1i Y��4s� 41 r'►i 1 `.H t� C• t N 4,., ,� � , �, i e:ERW -' l 11, it Qom'_ :,11- l � - c ! THIS NOTE IS LEGAL TENDER ' µ. 3 _ ALL DEBTS,PUBLIC AND PRIVAT TE „�f ° ram' "� `G 1 >' B 03542754 F , � a WASHINGTON D.C. , B3 N / .� . 2 •B 03 42754 F f T ; Al B95 _ 1% Z k c - . \\ ' N j SERIES ��o O '- 2 ,1 fnis NU9( n/SI A^c r° �, 1. " . l _Inimi ' CNanr f q s County , N i'f, h\'lIA 4th6 / &'f.. �i I 'hl�L�i v{��IN �5\� 1` '.,,I � &`� N t L,. k�.-utS Flood Control // 3% 3% 20% 26% 36% County Yakima City of State School Yakima 1196 Yakima Levy 1 & 2 School EMS Valley Yakima Regional County Library 140 2025 GeGeneral _ REVENUES BY SOURCE EXPENDITURES BY CATE R ' ,3 8,730 $81,0581786 flit: (4,680,056) I utility & Franchise Taxes 28E% Salaries& Wages 57.71 Sales Tax Personnel Benefits Property Tax 13.9% 441glillTransfers Out Supplies for Charges for Services �° Cnnsumpiion Fines& For(Transfers, LS Resale 55..M7 c Debt Service7r�`o Services & Pass- 2.S`5� Licenses and Other Taxes Intergovernmental Capital Outlays Through Payments Permits Assessments Revenues 0'4 ' 119% 141 2026 G REVENUES BY SOURCE EXPENDITURES BY CATEGORY $76,779/080 Oeficit: $ (87124 597) Salaries & Wages 58,2uw Utility & Franchise faxes 28.9% Sales Tax 41_7% Ili Transfers Out -1\ik _14'u Property Tax Debt Service& 11.9'".o," capital Uutlas Fines&fort Transfers, --Charges for Services "disc _ %1111111111J--,.1111 Services & Pass- 5.5'��u intergovernmental Through Payments IlirtiPersonnel Benefits Licenses and Other Taxes & 13.$"w 2 1�� Revenues2L_L.u Permits Assessments Supplies for 1, Consumption & Nasals 142 -- -r What is in the Cityof Yakima 's _ - rlt"'�I GENERAL FUND? „,,8 ,, ,,,iiiiilit, , ,, ,,-,...,A. ,vi„:„.: 4--ji - , '''.t ,,V.t.c.. -2,,,, 1:0N...0 1„,,t -- POLIO .10 LI '-, r�1. L: r`4 e`` I ' x ' A,li.1k--;"141._C 1...-.Pi t1,1 M'- .,1:i,' iI` .0 `i ') s3°lnr i r t li_- { l _� i CITY OF YAKIMA _ y e c ivt r, a.,F Ct,1"eNT.CITYAxFQRN 'r r rS►--r •1' t. 11 .1 i Nil _ i ilt 4 Z, : ral.,11 :11 ' d ' , ' i, FACILITIES MANAGEMENT a - a1` ili 144 .4 1,.., i.- llr--:e HUMAN j _ ' 6°_-_____ 11114.4, /✓ RESOURCES _ „� r f-INANCIA4. PI_oNN s I , 1\` 1Fl�lAGft'sENT CAREER _— . 11 ) I,l -a - i1 4 a J�1 —J 1 1 1 f .e Sniu RECRUT010ir ABILI a - J RAINING Ty • J.. / \ > RIRING ` " ,) 4 Page 1A 143 What services are NOT in the GENERALFUND ? ,z, . 7 , 4Y _:,.., _ it , . '44 YZ6b)rrtg4 ; 441 t , kr , , ,________, ' Y ' c� la_ i � �" I ` lii §f i' �-fir 5 e �r 411144-14.. 11r w• r. .� Ali: :a,.. m 4 s ,.._.. , .... , i _ _ i lk,.:. - 41s=ini*,, ! jr1 r17.17.14" . „.--p 111 ....-• .it , : . 4 A A... , I . �1 � "f '' - Pun ng H• _.:Et'7" oi. ib '5 .. .. - . .. . •.,.:„...„.....,• .. _„. ':'•' �" . ., .} Saes _ 1 ■ s5..S r !2l114e. 1 ill. ° Page 15 144 2024 Priority Based Budgeting nFt (31111111k Piegrarn Coltimil Mike Bailey 40 years - Everett, Redmond, de MRSC, GFOA Y c4 Of4clii n and LJ4IIvia.n th•Data • - _ Leading Budget Committee ' Interim Finance Director _ 63 I Streets & Traffic 64 54 Sidewalks 105,000 65 55 Snow & Ice Control 459,500 66 56 Street Maintenance Roadway 3,227,000 67 57 Street Cleaning 570,500 !38 58 Street maintenance Admin 179,000 69 1 59 Street General Services 10,300 145 Page 1 • Pwcgrvrr1 r,,wr��+ 1 linv ersta PriorityBased Bud etin 0� 'r+a�r3Ra ray 7, Pierian C[3w917 f'y p.,”3 evel An innovative approach to align spending with priorities tikv Wilke a th.Oaea Provides clarity around "programs" and their costs Communicates more clearly to the public Clarifies how strategic priorities informed budget choices Challenges A big change for everyone Requires time to "perfect" Doesn't balance budgets for you - just illustrates options and choices 146 Page 17 How did we get here? • Structural Issues: • Property Tax 1 % reducing levy rate - $200,000 this year • Not keeping up with cost of inflation • One time money (ARPA) helped through Covid but funds have been obligated and exhausted • Cities across the state grappling with this issue, passing levies, raising rates • Increased population and demand for services • Several City Managers have made cuts over the last 20 years • Carry forward deficit of $8.5M from 2023, temporary measures in 2024 • Started with a negative trajectory as costs rise rapidly • Cuts made in 2023 were mainly to support services and not the main cost drivers, problem pushed to 2025-26 budget 147 Whatarewedoingaboutit? % - -- . 2025 - 202,E Bien]'ijaj Budget is constitutionally required to balance y Adopted Budget 2025-2026 budget due by Dec 31 , 2024 - — - 4' - .75 01.; 4te • • - January-May 2025 Priority Based Budgeting Community Outreach �- .. s_ - �_,7 �- 4 Community Presentations s 6 ' i 4 3TownHalls � --�-_ . , �' Pop Up Table events Online and social media lii 1 Survey of the public i � _ _ I Feb-May 2025 CITIZEN BUDGET COMMITTEE ram: �a 1`' �,. , Report to Council with recommendations May 2025 '" " '` `'''' 01- Mid-biennial adjustment to 2026 budget in fall 2025 148 Page 19 FrequentLyAsked uestions Can't you raise the sales tax rate? Can't you tax just people who can afford it? Can't you outsource and privatize things? Can't you eliminate funding on homelessness? Can't you stop doing big projects like North First Street rebuild? Can't you cut the salaries? Can't you create a fire district? What about the current .2% sales tax proposal, won't that help? You need to audit the City of Yakima! What about getting the state to pay for this stuff? What if we do nothing? 149 Page 20 General Fund Ending Fund Balance vs PoLicy Reserve . _ . • _ _ (Fund 001 Only - With Transfers) With ARPA — _ - Revenue Replacement —"".../ i - ::: $10,000,000 Attilit . ($10,000,000) ($20,000,000) P. - e " • ii#. ($30,000,000) ($10,000,000) ($50,000,000) 2023 2024 2025 2026 2027 2028 2029 Actual YE Est Budget Budget Projected Projected Projected # GE End Balance # Policy Rsv Mitt-16.7°e 21 150 Budget Survey Priority Based Budget Process & Criteria for Budget Exercise Survey lists programs we do not legally have to provide Does not list any programs we are required to do Does not list any programs that are not in the general fund Does not list things that were previously cut by 10% or more in 2023 Does not include MLK Jr. Aquatics Center, YMCA/Rotary Aquatics Center, Fisher Golf Course and other general fund programs that are currently funded or not part of the 25-26 budget issue MLKJr. Aquatics Center — funded until 2027 YMCA/RotaryAquatics Center — not part of the general fund until 2030 Fisher Golf Course pays for itself with fees 151 Page 22 CityofYakima ■ . I.; � -' ■ Budget Priorities At• . 71:4. a Su rvey . .. I 2025 . ter. :6-1- . 1, . .,. % . it•. ' r 7 m, - .. ium • SociaLmedia • '.� JO •I:L. • & Website Please don 't shoot _ _ the messenger v -- lir- Ile. f # 0 1 i •C•.,. .6.....1 ...4t 1t4p . . . ow -,.--- , , _ pi-gir _ 1 1 53 Page 24 Investingin our positive future Safer Community - focused on all types of crime Encourage safer infrastructure - safety lighting, design standards, fire prevention Working with Yakima County on the impacts of Homelessness Economic Development Business Mindset in City Hall Infrastructure that can support growth responsibly Engaged community Improved quality of life Increased tourism taking full advantage of our many assets Improved partnerships with Yakima County and regional cities 154 Page 25 % 155 .,.. •ram