Loading...
HomeMy WebLinkAbout05/06/2025 09.A. Misc Distributed at the MeetingDistributed at Meetin 5- 6- .202s- lte Yakima City Council —Budget Proposal Ideas Presented by Gunnar Berg May 6, 2025 Introduction To address the $9,000,000 budget shortfall, I propose three actionable strategies: targeted budget cuts, automatic fee increases tied to the Consumer Price Index (CPI), and renegotiation of interlocal service contracts. These measures aim to streamline budget discussions, enhance revenue, and reduce operational strain. 1. Immediate Targeted Budget Cuts Implementing immediate, strategic cuts can reduce the deficit without solely relying on tax increases. The following proposed reductions total $206,200 in savings: Item Savings Windows Alive/Arts $10,000 Fireworks $15,000 Flowers and Flower $44,300 YCDA Funding $50,000 Sell BOA Building $50,000 Adult Sports $36,900 Total Savings $206,200 Action: Approve these cuts at the next meeting to initiate deficit reduction. 2. CPI -Based Automatic Fee Increases To ensure revenue keeps pace with inflation, implement a 3% annual fee increase starting next year, reflecting the historical U.S. CPI average. Current fees generate —$3,000,000 annually; a 3% increase would add $90,000 in Year 1. 10-Year Revenue Projection (3% Annual Increase): 3% Year Revenue Increase 1 $3,000,000 , 90,000 2 $3,090,000 $92,700 3 $3,182,700 $95,481 4 $3,278,181 $98,345 5 $3,376,526 $101,295 6 $3,477,822 $104,334 7 $3,582,156 $107,464 8 $3,689,621 $110,688 9 $3,800,310 $114,009 10 $3,914,319 $117,429 Total Additional $1,031,745 10 Year Revenue Proposed Fees for CPI Adjustment: • Building/Development Permits • Utility Fees (Water, Sewer, Stormwater, Solid Waste) • Bus Tickets, Parks/Recreation Fees (e.g., Lions Pool, Harmon Center) • Business Licensing, Planning/Zoning, Public Safety Fees • Parking/Traffic, Recording/Administration, Special Event Permits Recommendation: Introduce Impact Fees to further bolster revenue. 3. Renegotiate Interlocal Service Contracts Yakima provides Fire, Police, and IT services to cities like Union Gap, incurring significant overtime costs due to understaffing. Renegotiating contracts under the Interlocal Cooperation Act (RCW 39.34) to include a 15% premium can generate additional revenue. Proposed Contract Fees: Hourly Rate for Service Administrative Surcharge Equipment Usage Fee Late Payment Penalty Training and Certificate Fee Emergency Response Fee Plan Review Fee Annual Contract Administration Fee Specialized Service Fee (e.g., hazardous material inspections) CPI Adjustment (3% annually) Strategy: • Reinvest all additional revenue into hiring more staff for Fire, Police, and IT departments. • Increased staffing will reduce overtime costs, further lowering the budget deficit. • City Manager Vicki should lead renegotiations with other cities' leadership. Benefits: • Reduces department strain and overtime expenses. • Enhances service sustainability while generating revenue. • Aligns with legal frameworks for interlocal agreements. Conclusion These proposals —budget cuts, CPI -based fee increases, and contract renegotiations —offer a balanced approach to addressing the $9,000,000 shortfall. By acting swiftly, the City Council can stabilize finances, improve operational efficiency, and maintain essential services. I urge you to consider these measures and take action in the upcoming meeting. Contact: Gunnar Berg ORDINANCE NO. 2025-XXX AN ORDINANCE OF THE CITY OF YAKIMA, WASHINGTON, AMENDING THE YAKIMA MUNICIPAL CODE TO IMPLEMENT AUTOMATIC ANNUAL FEE INCREASES BASED ON THE CONSUMER PRICE INDEX (CPI), AND PROVIDING FOR SEVERABILITY AND AN EFFECTIVE DATE WHEREAS, the City of Yakima provides essential services, including building and development permits, utilities, public transportation, parks and recreation programs, business licensing, planning and zoning, public safety, parking and traffic enforcement, recording and administration, and special event permits; and WHEREAS, the costs of providing these services have increased due to inflation, rising operational expenses, and infrastructure maintenance needs; and WHEREAS, current fees generate approximately $3,000,000 annually, and maintaining revenue in line with inflation is necessary to sustain service levels without placing undue burden on the City's General Fund; and WHEREAS, a 3% annual fee increase, reflecting the historical average of the U.S. Consumer Price Index (CPI), is projected to generate an additional $90,000 in the first year and approximately $1,031,745 over ten years; and WHEREAS, Washington state law, including RCW 36.32 and RCW 35.22.280, authorizes cities to establish and adjust fees for services, provided such fees are reasonable and supported by the costs of service provision; and WHEREAS, this ordinance ensures transparency, public participation, and compliance with state law to withstand potential legal challenges, consistent with court decisions such as Isla Verde Int'l Holdings, Inc. v. City of Camas (99 Wn. App. 127, 2000); and WHEREAS, the Yakima City Council finds that automatic CPI -based fee adjustments are necessary to maintain fiscal sustainability, protect public health and safety, and promote equitable cost -sharing for city services; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF YAKIMA, WASHINGTON, DOES ORDAIN AS FOLLOWS: Section 1. Purpose The purpose of this ordinance is to amend the Yakima Municipal Code (YMC) to establish an automatic annual fee adjustment mechanism based on the Consumer Price Index (CPI) for specified city fees. This ordinance ensures that city revenues keep pace with inflation while complying with Washington state law. Section 2. Amendment to Yakima Municipal Code — Automatic CPI - Based Fee Adjustments A new section is added to the Yakima Municipal Code, Title 1 (General Provisions), Chapter 1.XX (Fee Adjustments), as follows: YMC 1.XX.O1O — Automatic Annual Fee Adjustments Based on CPI 1. Applicability. The following fees and charges established in the City of Yakima Master Fee Schedule shall be subject to an automatic annual adjustment based on the Consumer Price Index (CPI): • Building and development permits, including plan review and inspection fees. • Utility fees, including water, sewer, stormwater, and solid waste services. • Public transportation fares, including bus tickets. • Parks and recreation fees, including but not limited to Lions Pool, Harmon Center, and field rentals. • Business licensing fees, including general and regulatory licenses. • Planning and zoning fees, including applications for subdivisions, variances, and rezones. • Public safety fees, including fire inspection and code enforcement fees. • Parking and traffic fees, including permits and fines. • Recording and administration fees, including document processing. • Special event permits, including street banners and temporary use permits. 2. Adjustment Rate. Beginning January 1, 2026, and annually thereafter, the fees listed in subsection (1) shall be adjusted by 3%, reflecting the historical average of the U.S. Consumer Price Index (CPI) for All Urban Consumers (CPI-U), as published by the U.S. Bureau of Labor Statistics. The adjustment shall be calculated as follows: • New Fee = Current Fee x 1.03 • Fees may be rounded to the nearest dollar or five -dollar increment for administrative efficiency. 3. Alternative CPI Adjustment. If the annual CPI-U for the Seattle -Tacoma -Bellevue Metropolitan Area, as published by the U.S. Bureau of Labor Statistics for the 12- month period ending June 30 of the prior year, differs significantly from 3% (i.e., exceeds 5% or is below 1%), the City Manager may recommend an alternative adjustment rate to the City Council for approval by resolution. Such recommendation shall be supported by a fiscal impact analysis and public hearing. 4. Council Review. The City Council retains the authority to modify, suspend, or amend the automatic fee adjustment by ordinance if economic conditions, service costs, or other factors necessitate a different approach. The Council may also adjust base fees independently of the CPI adjustment. 5. Public Notice. The City shall provide public notice of the adjusted fees at least 30 days prior to January 1 of each year through publication on the City's website, in the Master Fee Schedule, and at City Hall. The notice shall include the new fee amounts and the effective date. 6. Revenue Projection. The automatic 3% annual fee increase is projected to generate the following additional revenue over ten years, based on an initial annual revenue of $3,000,000: • Year 1: $90,000 • Year 2: $92,700 • Year 3: $95,481 • Year 4: $98,345 • Year 5: $101,295 • Year 6: $104,334 • Year 7: $107,464 • Year 8: $110,688 • Year 9: $114,009 • Year 10: $117,429 • Total Additional Revenue (10 Years): $1,031,745 Section 3. Compliance with Washington State Law This ordinance is designed to comply with Washington state law, including but not limited to: �► RCW 36.32, authorizing counties and cities to establish fee schedules. • RCW 35.22.280, granting cities broad authority to regulate fees for services. • Court decisions, such as Isla Verde Intl Holdings, Inc. v. City of Camas (99 Wn. App. 127, 2000), affirming the authority to impose fees for public services that are reasonably related to service costs. Section 4. Public Participation Prior to the adoption of this ordinance, the City shall: 1. Hold a public hearing to solicit input from residents, businesses, and stakeholders. 2. Publish notice of the hearing at least 14 days in advance in a newspaper of general circulation and on the City's website. 3. Make available a fiscal impact analysis and the proposed Master Fee Schedule for public review. Section 5. Severability If any provision of this ordinance or its application to any person or circumstance is held invalid, the remainder of the ordinance or the application of the provision to other persons or circumstances shall not be affected. Section 6. Effective Date This ordinance shall take effect on January 1, 2026, following its passage and publication as required by law. Adopted by the Yakima City Council this day of , 2025. Mayor Attest: City Clerk Approved as to form: City Attorney Distributed at Meeting: em# MEMORANDUM TO: VIA: Yakima City Council Vicki Baker, City Manager FROM: Mike Bailey, Financial Consultant to the City of Yakima Citizen Budget Committee SUBJECT: An Update on the Citizen Budget Committee DATE: May 6, 2025 This report summarizes the activities of the Citizens Budget Committee created by the City Council on December 10, 2024, consistent with the prescribed functions and duties in the founding resolution. While this report summarizes their efforts, and discussions at a high level, we have made it clear that each committee member is free to express their opinions independently as well. Additionally, the committee continues its work to develop recommendations to share with the City Council. The members of the committee are listed in Attachment A along with their respective sponsors. Activity It was a pleasure to work with and support these individuals through this effort. To date, there have been eleven meetings of the committee covering such topics as how city budgets work, the history of the City of Yakima's General Fund, revenue options for cities in Washington State, reviews of the departmental programs in the context of priority -based budgeting, input and feedback from the townhalls and related survey work conducted by the City, and many conversations about alternative approaches and possible solutions. (Note: the committee provided helpful feedback regarding the draft citizen budget survey. Not all of the feedback was able to be accommodated by the tools being used, but many changes were made based on their input.) The meetings initially lasted 60 minutes but we weren't finishing within that time. The committee agreed to extend the meeting times to 90 minutes (but we often went beyond that time limit as well). In fact, the lastest meeting on April 30th lasted over two -hours. The committee continues to meet, In addition, there were numerous homework assignments, and several committee members did additional work on options independent of the stated agendas and approach. This was an enthusiastic and caring group of individuals. While the meeting schedule did not work well for everyone, the level of attendance was commendable. Many members attended all meetings. Those who were unable to attend a meeting often followed up with me to stay caught up and were ready to offer constructive input when we reached that step. Memo to the City Council Re: Citizen Budget Committee Report Discussion With a diverse group of individuals, the discussions were wide-ranging. Many of the concerns and issues raised by the committee members were outside of the scope of our assignment (such as reviewing the contractual agreement with the YMCA for the swimming pool, understanding what is funded by general revenues but in other funds). Frustrations - The committee met with each department director to review the programs identified during the priority -based budgeting approach used last fall. Often this resulted in some frustration that with the breadth of city programs in the General Fund, the three meetings (four and % hours) devoted to this proved insufficient to form clear opinions about opportunities to refocus the city's limited resources from one program to another. As a result, the committee felt that the use of the priority -based budget approach (as in scoring programs against the Council's stated strategic objectives and commonly used program attributes) did not result in a dear stratification of city programs for their analysis. [Note: see the Council's strategic objectives and program attributes used for this exercise in attachment B.1 This unique approach also proved to be a bit of a learning curve as most budget exercises focus on line -item details and adjusting. Since the Council chose to implement a priority -based approach the resolution creating the committee asked them to utilize this program -oriented model as well. Most committee members did complete the scoring exercise — though with some misgivings. See the Program summary stratified by committee member scores in Attachment E. The lack of revenue flexibility for cities in Washington State also proved to be frustrating for the committee. In a discussion as to options for additional resources to meet community needs, some on the committee felt that sales taxes would be a better option as opposed to raising property taxes. (Note: there was some discussion and disagreement on this point). However, the lack of meaningful options other than property tax increases was a common concern. Additionally, there was discussion about the merits of a vote for additional resources as contrasted to the wisdom of the Council taking the initiative to identify additional resources as needed. As described above, the committee continues to review the options in hopes of developing specific recommendations for the Council's consideration. Understanding the financial journey that the city has been on was also challenging. While needing more resources to accomplish their mission was a common theme from department directors, the lack of information about the effectiveness of the current programs was noted. The Council's adopted strategic goals were continually part of the conversation. It was observed by some that the Council should work with their new city manager to build specific workplans, operational objectives and performance evaluations of those programs and workplans that would inform future iterations of the strategic goal discussions as well as the budget. Rather than recreate the strategic goals for each budget, conduct any edits that might be in order and Page - 2 Memo to the City Council Re: Citizen Budget Committee Report build a responsive approach to these goals that improve the connection between strategic priorities, departmental operations and success, and financial support. There were references to past budget cuts and lower levels of city staff in current budgets as compared to the past and the committee reviewed the departmental headcounts over the past ten years (see Attachment C). Of particular concern was the lack of clarity (potentially intentional) by past City leaders as to the headcounts in crucial departments. While the official budget materials indicate that individual employee counts varied only slightly, the reductions in total city employment supported by the General Fund was not illustrated clearly. A total of eleven "frozen" positions in the police and fire budgets are only noted in various footnotes for those who knew where to look for them. (In this case, "frozen" means the position is listed as existing however there is no funding for the position in the department's budget and the department was not permitted to fill the position.) The frozen positions are five police officers, three fire-fighters and three telecommunication specialists (dispatchers in the 911 center). As a result the information provided to the Council, the committee and the public about levels of staff available in these crucial areas was misleading and only brought to light very late in the committee's work. (In addition to the eleven positions in police and fire, there is also a "frozen" position in the Finance Department.) As a result, the total number of employees in the programs under review actually dropped over the past ten years with decreases coming in some of the highest priority areas of the City. Themes As indicated there were several divergent opinions on a number of topics. Some committee members developed preliminary recommendations to reduce the current budget by the identified $9 million gap (those are provided as attachments to this memo for your information). Some wanted the Council to explore revenue options. A focus on those who directly benefit from city services paying more of the direct costs also emerged as a theme. Ensuring the city is not carrying any unnecessary real estate or buildings was discussed. Below are some of the more common themes resulting from the discussions. Cost cutting — While some committee members went through the budget and recommended reductions resulting in the $9 million target, most did not take this approach. While the committee felt there were some programs that the city supports which are narrow in focus, no consensus has emerged as yet regarding which programs the city should stop doing. Revenue options — As discussed above, there were divergent opinions about which revenue options might be best for the city. Some discussed a vote to raise property taxes (such as an increase to the EMS levy, potential parks district or fire authority with their own taxing authority) others preferred pursuit of sales tax alternatives (though this option is pretty limited by state law). The new authority for an increase in the sales tax by .1% dedicated to public Page - 3 Memo to the City Council Re: Citizen Budget Committee Report safety was discussed as well. The idea of increasing the Transportation Benefit District (TBD) sales tax or motor vehicle excise tax seemed to have support as well though it would be of marginal benefit to the General Fund. Additionally, the committee also discussed the logic of proposing to eliminate the automatic "CPI inflator" in the dedication of funds for streets and parks in the City's charter. This would free up just over $1.2 million in the 2026 budget. However, due to the compounding over time, this would grow to mandate a much larger dedication to these city responsibilities in future years. The committee discussed the option of charging a higher fee to non-resident use of city programs and facilities (who don't pay the taxes to subsidize city facilities and activities). Additionally, the committee noted that Yakima provides lots of services to other cities and jurisdictions. Instead of just recovering costs, the city should consider charging a "little more" for these services. Another revenue idea was to solicit sponsorships from private individuals or businesses for city programs where it would be appropriate. Lastly, the committee was curious as to whether development related fees are recovering the full costs of the related city processes that support this work. Economic development — All committee members seemed to agree with the proposal put forward by city manager Vicki Baker that making Yakima a more attractive place to start and sustain a business was a good long-term strategy. The committee also acknowledged that this approach will take time to have an impact on city budgets and action should be taken soon to maintain the city's strong financial position. It was observed in the context of different topics that the city has several strong financial activities, businesses and residents. This led to such ideas as sponsorships, philanthropic approaches, and a willingness to enable residents to carry more of the responsibility for activities that benefit the community. Budget approaches — Committee members asked about a target -based approach where department directors would use their expertise to develop budgets to serve the City within a given financial parameter. Some committee members felt this might serve the city better than the priority -based approach (or maybe as a companion approach). See Attachment D for a description of a "Target Based Budget". This approach may help to address a concern the committee had that left unchecked, public safety would eventually eclipse all other city programs and services. Conclusion The committee developed a variety of considerations including ways and places to reduce costs, approaches and opportunities to increase resources and ideas for making the city more efficient Page - 4 Memo to the City Council Re: Citizen Budget Committee Report in its use of current resources. The best approach will likely be a combination of many ofthe issues, concepts and approaches that are described above for Council's consideration. As different committee members have different ideas, they ill likely find it valuable to share a few o their top thoughts with the Council directly. Attachments: A Budget Advisory Committee Members B Council's Strategic Priorities and Priority Based Budgeting Program Attributes Review of headcount by department, last ten years Description of a Target -Based Budget Individual committee member efforts to reduce the current budget by 9 million Program summary stratified by committee member scores Page-. Memo to the City Council Re: Citizen Budget Committee Report Attachment A City of Yakima, WA - Citizen Budget Committee — Membership Roster Dirk Bernd — representing Matt Brown Gunnar Berg — representing Reedy Berg Matt Duffy — representing Rick Glenn Angie Girard — representing Janice Deccio Dulce Gutierrez — representing Danny Herrera Jeanna Hernandez — representing Patricia Byers Luis Lopez — representing Leo Roy Attachment B Council's Strategic Priorities and Priority Based Budgeting Program Attributes Strategic Priorities: A Safe and Healthy Yakima; A Resilient Yakima; A Thriving Yakima; An Engaged Yakima Program Attributes (these differ for those programs which face the community and those which are more related to governance). Community Attributes — Level of mandate; Reliance on the city for the service; Degree of cost recovery; Percent of the population of the city served by the program; Opportunities for collaboration with others; The degree to which the program extends equity for city services; Change in demand for the service. Governance Attributes — Contributes to fiscal responsibility; Contributes to good decision making; Enhances communication with the community; Supports a strong workforce; Advances compliance with laws and regulations; Supports continuous improvement; Addresses the management of risks. Page-6 Memo to the City Council Re: Citizen Budget Committee Report Attachment C - Review of headcount by department, last ten years 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 City Manager 2 3 4 3 3 4 4 4 3 3 City Council 7 7 7 7 7 7 7 7 7 7 Racords/ City Clerk 5 5 5 5 5 5 6 5 5 5 Human Rasources 9.1 9.1 9.1 9.1 9.1 9.1 10.5 10.5 11 11 Legal 18.5 18.5 19.5 19.5 19.5 21.5 21.5 21.5 20.5 20.5 Municipal Court 12.2 12.2 12.2 12.2 11.2 11.2 11.2 11.2 10.5 10.5 Planning 6 7 7 7 7 7 7 7 7 7 Code Administration 17 17 17 17 17 19 19 19 17 17 City Hall Facility Maint. 2 2 2 2 2 3 3 3 3 3 Economic Development 2 1 0 0 0 1 1 1 2 2 Police 195 195 189 188 188 190 192 192 193 193 frozen police officer positions -5 -5 Fire 104 103 104 104 104 104 105 105 107 107 frozen firefighter and dispatch positions -6 -6 Information Technology 23 23 23 23 24 24 23 23 23 23 Finance 15 15 15 13 14 14 14 14 13 13 frozen finance position -1 -1 Parking 2 2 2 2 2 1 1 1 0 0 Purchasing 6 6 6 6 4 4 4 4 4 4 E gneering 8.75 7.5 7.5 7.5 8.75 9 9 9 9 9 Total '434.55' 433.3' 429.3' 425.3'425.55' 433.8' 438,2' 437.2' 423r 423 Parks & Recreation 20.9 20.9 22.9 23.4 23.4 24.7 25.4 25.4 25.4 25.4 Traffic Eineering 9.0 9.0 9.0 9.0 8.0 9.0 9.0 9.0 9.0 9.0 Streets 22.0 22.0 24.0 24.0 24.0 24.0 24.0 24.0 22.0 22.0 Total General 495.2 492.7 492.7 489.2 489.7 00. 50.6 504.6 488.4 488.4 Note: frozen positions are only noted in the current budget period and may apply to previous budgets as well. Page - 7 Memo to the City Council Re: Citizen Budget Committee Report Attachment D —Target Based Budgeting in Local Government The target -based budget has two primary components: 1) a "Target Level" budget that finances a basic level of municipal services, and 2) an unspecified number of incremental expenditure requests called "Current Service Levels" or "Expanded Service Levels." Each service level is a separate and autonomous set of expenditures intended to provide a specific service or to fund a particular program, project, or piece of equipment. Each represents either a change in how existing services are delivered (i.e., "Current Service Level") or an additional or new level of service (i.e., "Expanded Service Level") that a department can provide. Staff prepares a budget according to the following steps: 1. A Target Level expenditure base is established for each department within the funds where this approach is to be used. The Target Level was defined as the amount necessary to provide the same or lesser level of service as last year, with no new programs, staff, or one-time capital outlays. 2. The department head prepares additional service -level requests (i.e., Current and Expanded Level requests). If the City Manager approves Current or Expanded Service Levels or programs, the Finance Department added them to the proposed budget; those not approved are not included in the budget. For the reader's information, Current and Expanded Level requests —whether approved by the City Manager or not —should be made available to illustrate what did not get approved and included. 3. Department heads rank Current and Expanded Level requests in priority order. 4. Staff estimates revenues for the impacted funds and finalizes the preliminary budget by funding the service level requests that, in the City Manager's opinion, were the highest priority within our revenue constraints. Page - 8 4 8 10 16 18 19 20 45 46 47 55 56 67 80 9 10 11 11 13 13 13 13 13 City of Yakima - Community Programs Police Programs 2025 COMMENT Community Service Officers: 386,000 CUT BY 60% - COST OPTIMIZATION W1TH CODES DEPT Prisoner Transportation: 220,000 CUT FULLY- COST OPTIMIZATION WITH DETENTION FTE's Major Crime Unit: 770,000 CUT BY 10% Crime Free Rental Housing 82,000 CUT FULLY Record Management 870,000 CUT BY 50% Internal Affairs 297,000 CUT FULLY Trainin. Office 316,000 CUT FULLY TOTAL DEDUCTION li ire TOTAL DEDUCTION Parks CUT DEPT BY 20% OR CLOSE STATION 92 Park Maintenance (Revenue included) 2,272,823 CUT BY 15% Ballfield Maintenance (Revenue included) 237,463 CUT BY 50% Parks & Recreation Administration TOTAL DEDUCTION 999,509 CUT BY 25% Streets & Traffic Snow & Ice Control 459,500 CUT BY 50% Street Maintenance Roadwa 3,227,000 OFFSET WITH TBD FEE INCREASE OF $10.00 (CURRENT $20 FEE GENERATES 1,7 MILLION P/YEAR TOTAL DEDUCTION Traffic Operations Traffic Control Devices 1,423,000 CUT BY 25% TOTAL DEDUCTION Municipal Court Communi Diversion Pro•ram TOTAL DEDUCTION 50,000 CUT Codes Leadershi. TOTAL DEDUCTION Planning 479 180 CUT BY 30% Lon. Ran.e Plannin. TOTAL DEDUCTION 364,662 CUT BY 50% Engineering I Office Admin 300,000 CUT BY 15% f Pro"ectAdmin 150,000 CUT BY 15% TOTAL DEDUCTION Economic Development 1 Windows Alive/Arts Commission 10,000 CUT Flowers and flower baskets 44,300 CUT YCDA 50,000 CUT Fireworks 15,000 CUT I Federal Lobb in• TOTAL DEDUCTION Total Communi Pro•ram Deductions 60 000 CUT Page 1 SUBMITTED BY DULCE GUTIERREZ 04/16/2025 City of Yakima - Governance Programs 2025 COMMENT CUT DEPT BY 10% Human Resources Personnel / Benefit Administration 101 102 103 Civil 116 118 119 125 126 129 466,644 CUT BY 10% Payroll Administration Service (Charte Police Fire)/ 255,980 CUT BY 10% 595,68 CUT BY 10% TOTAL DEDUCTION Facilities City Hall Facilities BOA Buildin 520,671 CUT BY 20% OFFSET BY MINIMUM OF 50% WITH 50,000 LEASE REVENUE Purchasing Special Pro`ect Professional Services 34,000 CUT BY 50% TOTAL DEDUCTION City Administration AWC Dues 85,000 CUT Trainin./Travel Cell Phones Total Governance Pro ram Deductions CUT BY 50% Page 2 SUBMITTED BY DULCE GUTIERREZ 04/16/2025 Yakima Budget Advisory Committee To address the City of Yakima's fiscal challenges and achieve a target savings of approximately $9,000,000, I have reviewed city programs and propose the following reductions and efficiency measures. Each recommendation includes a justification, estimated savings, and strategies to maintain essential services where feasible. These proposals prioritize public safety, infrastructure, and core services while leveraging technology, cross training, outsourcing, and revenue generation to minimize community impact. Programs are listed in numerical order: GOAL: $9,000,000 in Reductions Department Police Department: Fire Department: Parks Department: Information Technology: Streets and Traffic: City Clerks Office: Traffic Operations: Municipal Courts: Prosecution: Finance: Codes: Human Resources: Planning: Engineering: Clean City: Facilities: Purchasing: City Managers Office: City Administration: Economic Development: Total Savings: Reduction Recommendation $997,000 $3,342,000 $1,872,000 $594,000 $414,000 $114,000 $197,000 $387,000 $180,000 $50,000 95,000 $421,000 $55,000 $75,000 $58,000 $102,000 $47,000 $45,000 $24,000 $119,000 $9,1.88,000 POLICE DEPARTMENT PROGRAMS Program 1: UAV (Drones): No Reduction Program 2: K9: No Reduction Program 3: ProActive Unit: No reduction Program 4: Community Service Officers ■ Recommendation: Eliminate 3 of 5 FTE positions or discontinue the program if not required. • Justification: Reducing non -essential roles preserves resources for frontline policing. • Savings: Between $231,600 - $386,000 Program 5: DUI Enforcement: No Reduction Program 6: Traffic Unit: No Reduction Program 7: Detention: No Reduction Program 8: Prisoner Transportation ■ Recommendation: Implement Zoom/Skype for court appearances where permitted. If in - person presence between attorney and prisoner is required, have attorneys visit prisons rather than transporting inmates. • Justification: Virtual hearings reduce risks and costs. Assuming 50% of cases shift to virtual platforms, significant savings are achievable. • Savings: $110,000 Program 9: Jail Contracts • Recommendation: Prioritize violent offenders for incarceration over nonviolent offenders (e.g., DUI cases) if not already implemented. • Justification: Focusing on high -priority inmates may reduce costs without compromising safety. It may also free space for more violent criminals. Further analysis is needed. • Savings: To be determined Program 10: Major Crimes Unit: No Reduction Program 11: Special Assault Unit: No Reduction Program 12: Property Crime Unit: No Reduction Program 13: Gang Enforcement: No Reduction Program 14: Narcotics Unit: No Reduction Program 15: Forensics Unit: No Reduction Program 16: Crime Free Rental Housing ■ Recommendation: Eliminate the program or seek grant funding. Cross -train staff to other roles. • Justification: This non -essential program can be discontinued to redirect resources. • Savings: $82,000 Program 17: Property and Evidence: No Reduction Program 18: Records Management ■ Recommendation: Cut by 50% through AI -driven efficiencies and software upgrades. Eliminate overtime for administrative tasks. Chief Boyle mentioned they used significant overtime last year to complete paperwork. Unacceptable use of OT in my opinion. • Justification: Overtime for paperwork is inefficient. AI tools can streamline records management, reducing staff reliance. ■ Savings: $435,000 Program 19: Internal Affairs ■ Recommendation: Cut by 20% through efficiency upgrades (e.g., Al tools, software) and reduced overtime. • Justification: Streamlined workflows preserve staff while lowering costs. • Savings: $59,400 Program 20: Training Office • Recommendation: Cut non -mandatory training and conduct eligible training remotely to eliminate travel and lodging costs. • Justification: Remote training maintains compliance while reducing expenses. • Savings: $79,000 Program 21: Crime Analysis: No Reduction FIRE DEPARTMENT PROGRAMS Program 22: Fire Suppression • Recommendation: Reduce by 20% by closing Station 92, redistributing staff, hiring volunteer firefighters for administrative tasks, implementing longer shifts, and deferring non -critical equipment upgrades. ■ Justification: Reallocating resources and leveraging volunteers maintains firefighting capacity while reducing overtime and capital costs. Move firefighters from Station 92 to other stations to cut down on Overtime. • Savings: $3,090,800 Program 23: EMT Services ■ Recommendation: Expand by adding trained volunteers or inactive EMTs to increase revenue. • Justification: Enhanced service capacity could offset costs elsewhere. • Savings: $50,000 generated (guesstimate) Program 24: Community Risk Reduction • Recommendation: Discontinue assistance to Union Gap/Selah/Etc or charge a premium for services. Justification: Reducing overtime or increasing revenue ensures fiscal responsibility. • Savings: $100,000 (assumes cuts + higher admin. fee charged) Program 25: Fire Administration • Recommendation: Cut by 10% through streamlined workloads, cross -training, and overtime elimination. • Justification: Efficiency measures preserve service levels at lower costs. • Savings: $95,400 Program 26: Training • Recommendation: Reduce by 10% by prioritizing Zoom -based training to avoid travel and lodging costs. • Justification: Remote training maintains compliance while cutting expenses. • Savings: $6,300 Program 27: Fire Mechanics/Facilities: No Reduction Program 28: Fire Investigation: No Reduction Program 29: Aircraft Rescue and Firefighting: No Reduction Program 30: MSA Repair Technician: No Reduction Program 31: Technical Rescue Team: No Reduction Program 32: Hazardous Material Team: No Reduction Program 33: Unmanned Aerial Systems Operations: No Reduction PARKS DEPARTMENT PROGRAMS Program 34: Washington Fruit Community Center ■ Recommendation: Increase service fees, seek sponsorships (e.g., Washington Fruit), or cut services by 40%. Justification: Revenue generation or reduced offerings align costs with essential priorities. ■ Savings: $127,836 Program 35: Fisher Park Golf Course • Recommendation: Increase prices by 25%. • Justification: Higher fees offset costs, with a conservative 10% savings despite potential participation drops. ■ Savings: $25,000 (Guesstimate) Program 36: Youth Sports • Recommendation: Increase prices by 25%. • Justification: Higher fees offset costs, with a conservative 10% savings despite potential participation drops. • Savings: $10,000 (Guestimate) Program 37: Youth Activity • Recommendation: Increase prices by 25%. • Justification: Higher fees offset costs, with a conservative 10% savings despite potential participation drops. ■ Savings: $10,000 (Guestimate) Program 38: Adult Sports • Recommendation: Either eliminate completely or increase prices to fully fund this activity • Justification: Adults can fund their own activities. • Savings: $36,9I7 Program 39: Community Recreation • Recommendation: Increase prices by 25%. • Justification: Higher fees offset costs, with a conservative 10% savings despite potential participation drops. ■ Savings: $9,381 Program 40: Lions Pool ■ Recommendation: Option 1: Eliminate entire pool from budget...sell the facility to the school district or private sector. ■ Justification: Elimination is best option. City is creating the MLK pool which will take the place of Lions Pool which is outdated, has significant repairs, and isn't sustainable revenue wise to fund itself, ■ Savings: $479,176 Program 41: Franklin Pool ■ Recommendation: Option 1: Turn Franklin Pool into a self-contained splash pad which requires no life guards/less upkeep. Also use space during the winter for an outdoor ice skating rink to generate revenue for the city. Install concession stand as well for summer/winter use. ■ Justification: It will require more of an upfront cost, but would be significantly less costly long term considering no need for staff/lifeguards. It also would be a fun new addition to Yakima. See if Yakima Rotary would fund this project. ■ Savings: $50,000 minimum per year over time. If not a revenue generator. Program 42: Aquatic Administration ■ Recommendation: Cut by 50% through reduced staff and program offerings. Cutting lions pool will lower cost naturally. ■ Justification: Prioritizing essential services over discretionary programs ensures fiscal discipline. ■ Savings: $83,372 Program 43: Harmon Center • Recommendation: Cut by 30% by reducing class offerings or increasing participant fees. • Justification: Prioritizing essential services over recreation reduces costs. • Savings: $114,662 Program 44: Senior Trip and Tours: No Reduction, try to expand Program 45: Park Maintenance ■ Recommendation: Reduce by 25% by decreasing mowing/landscaping frequency or outsourcing to private firms (e.g., Colonial Lawn and Garden). ■ Justification: Outsourcing reduces staff and benefit costs while maintaining basic upkeep. ■ Savings: $568,000 Program 46: Ballfield Maintenance • Recommendation: Cut by 50% by starting a volunteer program, reducing maintenance, and increasing concession prices with part-time labor. ■ Justification: Volunteers and fee hikes offset costs without eliminating community access. ■ Savings: $1 18,731 Program 47: Parks and Recreation Administration ■ Recommendation: Cut by 20% through streamlined work, cross -training, and Al/software efficiencies. • Justification: Efficiency upgrades reduce costs while preserving core functions. • Savings: $199,901 Program 48: MLK Pool ■ Recommendation: Double ticket prices to match Lions and Franklin Pools new pricing (if increased). • Justification: Higher fees reduce subsidies, assuming 20% savings. • Savings: $40,000 INFORMATION TECHNOLOGY PROGRAMS Program 49: Infrastructure/Security • Recommendation: Cut by 15% through streamlined security/infrastructure, cross - training, and Al efficiencies. • Justification: Technology and multitasking reduce costs without compromising service. • Savings: $301,940 Program 50: Geographic Information Systems • Recommendation: Cut by 10% through streamlined security/infrastructure, cross - training, and reduced support for other cities (e.g., Union Gap). • Justification: Prioritizing Yakima's needs preserves functionality at lower costs. ■ Savings: $37,806 Program 51: Application Development ▪ Recommendation: Cut by 10% through streamlined security/infrastructure, cross - training, and reduced support for other cities (e.g., Union Gap). • Justification: Prioritizing Yakima's needs preserves functionality at lower costs. • Savings: $56,973 Program 52: Computer Operations ■ Recommendation: Cut by 10% through streamlined security/infrastructure, cross - training, and reduced support for other cities (e.g., Union Gap). • Justification: Prioritizing Yakima's needs preserves functionality at lower costs. • Savings: $103,900 Program 53: Application Support • Recommendation: Cut by 10% through streamlined security/infrastructure, cross - training, and reduced support for other cities (e.g., Union Gap). • Justification: Prioritizing Yakima's needs preserves functionality at lower costs. • Savings: $93,453 STREETS AND TRAFFIC PROGRAMS Program 54: Sidewalks: No Reductions Program 55: Snow and Ice Control • Recommendation: Cut by 10% through outsourcing or efficiency measures. • Justification: Private sector efficiencies can lower costs while maintaining service. ■ Savings: $45,950 Program 56: Street Maintenance/Roadways • Recommendation: Cut by 10% by prioritizing high -traffic areas. • Justification: Focusing on critical infrastructure maintains safety while reducing costs. ■ Savings: $322,700 Program 57: Street Cleaning: No Reduction Program 58: Street Maintenance Administration • Recommendation: Cut by 20% through streamlined operations. • Justification: Administrative efficiencies reduce overhead without impacting core services. ■ Savings: $35,800 Program 59: Street General Services • Recommendation: Eliminate entirely. ■ Justification: Discontinuing non -essential services aligns with savings goals. ■ Savings: $10,300 CITY CLERKS PROGRAMS Program 60: Public Records Act (PRA) ■ Recommendation: Cut by 20% through digitization, Al tools such as Grok to get data quickly to respond to Public Records Requests, and elimination of non -required committees. ■ Justification: Technology to help respond to Public Records Requests, and reduced meetings streamline operations. ■ Savings: $39,663 Program 61: Open Publics Meeting Act ■ Recommendation: Cut by 20% through digitization, Al tools for meeting summaries, and elimination of non -required committees. • Justification: Technology and reduced meetings streamline operations, as supported by clerk estimates. ■ Savings: $39,663 Program 62: Records Management * Recommendation: Cut by 20% through digitization, Al tools for meeting summaries, and elimination of non -required committees. Justification: Technology and reduced meetings streamline operations, as supported by clerk estimates. Savings: $35,000 Program 63: Election: No Reduction Program 64: LEOFFI — Police Board: No Reduction Program 65: LEOFFI — Fire Board: No Reduction TRAFFIC OPERATIONS PROGRAMS Program 66: Street Lighting: No Reduction Program 67: Traffic Control Devices ■ Recommendation: Cut by 10% by postponing new installations/upgrades and focusing on maintenance. ■ Justification: Essential safety is preserved with deferred capital spending. • Savings: $142,300 Program 68: Traffic Planning • Recommendation: Cut by 10% through streamlined planning efforts. • Justification: Focusing on high -priority projects maintains functionality at lower costs. • Savings: $54,900 Program 69: Debt: No Reduction MUNICIPAL COURT PROGRAMS Program 70: Court Services by Judicial Specialists • Recommendation: Cut by 10% through staff reduction or efficiency measures. • Justification: Streamlining aligns with broader administrative savings goals. • Savings: $68,803 (Guestimate) Program 71: Court Services by Judicial Officers: No Reduction Program 72: Interpreter Services Recommendation: Replace staff interpreter with free Al translation tools by 2027 contract end. ■ Justification: Al tools are cost-effective and widely used in professional settings. There is no longer a need for a professional interpreter. ■ Savings: $150,580 Program 73: Jury Services: No Reduction Program 74: Probation Services — Yakima County • Recommendation: Cut by 10% through streamlined operations. • Justification: Efficiency measures reduce costs without compromising oversight. • Savings: $29,732 Program 75: Accounts Receivable: No Reductions Program 76: Collection Service (YCCS): No Reduction Program 77: Building Security: No Reduction Program 78: Administrative Duties by Manager • Recommendation: Cut by 50% through streamlining, cross -training, and staff reductions. • Justification: Consolidating duties enhances efficiency and reduces overhead. • Savings: $88,232 Program 79: Court Record Requests: No Reduction Program 80: Community Diversion Program • Recommendation: Eliminate as non -mandatory. • Justification: Discretionary programs can be discontinued to meet savings goals. • Savings: $50,000 PROSECTION PROGRAMS Program 81: Family and Community Violence Unit • Recommendation: Cut by 10% by prioritizing high -value cases and reducing overtime. • Justification: Streamlining preserves core functions. • Savings: $48,434 Program 82: Traffic and Property Crimes Unit • Recommendation: Cut by 10% by prioritizing high -value cases and reducing overtime. • Justification: Efficiency measures maintain prosecution capacity. • Savings: $38,617 Program 83: Charging Unit • Recommendation: Cut by 10% by prioritizing high -value cases and reducing overtime. • Justification: Streamlined operations preserve essential services. • Savings: $12,995 Program 84: Community Diversion • Recommendation: Eliminate entirely as non -required. • Justification: Discontinuing non -essential programs aligns with savings goals. • Savings: $80,727 FINANCE PROGRAMS Program 85: Budget • Recommendation: Cut by 10% through streamlined processes. • Justification: Efficiency measures reduce administrative costs. ■ Savings: $49,977 Program 86: Annual Comp. Finance Report (ACFR): No Reduction Program 87: (ACFR) Audit Certificate: No Reduction Program 88: Accounts Payable: No Reduction Program 89: Purchasing Card Auditing: No Reduction Program 90: Grants: No Reduction Program 91: Debt Management: No Reduction Program 92: Cash and Investments: No Reduction Program 93: Capital_ Management: No Reduction CODES PROGRAMS Program 94: Leadership • Recommendation: Cut by 5% through streamlined operations. • Justification: Modest reductions maintain oversight while contributing to savings. • Savings: $23,959 Program 95: Plans Examiner • Recommendation: Cut by 5% through efficiency measures. • Justification: Streamlining preserves core functions. • Savings: $12,430 Program 96: Code Inspectors • Recommendation: Cut by 5% through optimized workloads. • Justification: Efficiency measures maintain compliance efforts. • Savings: $15,073 Program 97: Code Enforcement Officers • Recommendation: Cut by 5% through streamlined operations. • Justification: Modest reductions preserve enforcement capacity. ■ Savings: $30,395 Program 98: Permit Techs/PPC ■ Recommendation: Cut by 5% through efficiency upgrades. ■ Justification: Streamlining maintains permitting services. ■ Savings: $13,285 Program 99: Suncore Dispatch Services: No Reduction Program 100: Indigent Defense: No Reduction HUMAN RESOURCES PROGRAMS Program 101: Personnel/Benefit Administration Recommendation: Streamline HR by consolidating accounts receivable, training, and public records tasks. Adopt private -sector tools (e.g., Workday) to cut 1/3 of the $1,318,305 total HR budget. ■ Justification: With current staff levels, HR is oversized compared to private -sector benchmarks. Consolidation and technology enhance efficiency. ■ Savings: $139,993 Program 102: Payroll Administration/Civil Service ■ Recommendation: Streamline HR as above. ■ Justification: As above. ■ Savings: $84,473 Program 103: Recruitment/Classification • Recommendation: Streamline HR as above. Hire this process out to headhunters to save time on recruitment (or use the company Workday or other private sector HR options to save significantly on staff/workload). ■ Justification: As above. ■ Savings: $196,574 Planning Department Programs Program 104: Current Planning and Licensing ■ Recommendation: Cut by 5% through streamlined processes. ■ Justification: Efficiency measures preserve planning functions. • Savings: $36,466 Program 105: Long Range Planning • Recommendation: Cut by 5% through prioritized planning efforts. • Justification: Focusing on high -impact projects reduces costs. • Savings: $18,233 Program 106: Legal Department: No Reduction Engineering Department Programs Program 107: Development Review: No Reduction Program 108: Development Inspection • Recommendation: Cut by 5% through streamlined inspections. • Justification: Efficiency measures maintain oversight. • Savings: $10,000 Program 109: Traffic Engineering • Recommendation: Cut by 5% through prioritized projects. • Justification: Focusing on high -impact areas reduces costs. ■ Savings: $12,500 Program 110: Office Admin • Recommendation: Cut by 10% through streamlined operations. • Justification: Administrative efficiencies reduce overhead. ■ Savings: $30,000 Program 111: Project Admin • Recommendation: Cut by 10% through streamlined management. • Justification: Efficiency measures preserve project oversight. • Savings: $15,000 Program 112: Traffic Calming • Recommendation: Cut by 10% through prioritized initiatives. • Justification: Focusing on high -priority measures reduces costs. • Savings: $7,500 CLEAN CITY PROGRAMS Program 113: Graffiti Program ■ Recommendation: Cut by 10% through streamlined efforts. See if private sector can help sponsor this, such as Standard Paint and Flooring who could donate free paint, supplies, etc. ■ Justification: Efficiency measures maintain community appearance. ■ Savings: $7,250 Program 114: Clean City Code Compliance • Recommendation: Cut by 10% through optimized enforcement. • Justification: Streamlining preserves compliance efforts. • Savings: $29,424 Program 115: Other Operating Expenses • Recommendation: Cut by 5% through reduced discretionary spending. • Justification: Modest reductions align with fiscal goals. • Savings: $21,553 FACILITIES PROGRAMS Program 116: City Hall Facilities ■ Recommendation: Cut by 10% by reducing cleaning staff and halting equipment upgrades/renovations. ■ Justification: Efficiency measures and deferred spending reduce costs. • Savings: $52,067 Program 117: HBJCC Maintenance: No Reduction Program 118: Bank of America Building • Recommendation: Sell the building or rent it out to generate revenue. • Justification: Selling eliminates maintenance costs; renting generates income in a prime location. ■ Savings/Revenue: $50,000 (minimum estimate for either option) PURCHASING PROGRA S Program 119: Purchasing Goods and Services • Recommendation: Cut by 10% by eliminating unnecessary purchases/upgrades. • Justification: Reduced discretionary spending aligns with savings goals. • Savings: $26,031 Program 120: Insurance: No Reduction Program 121: Purchasing Card Program: No Reduction Program 122: Policy and Procedure Training Recommendation: Cut by 30% by eliminating non -mandatory training and using remote options. • Justification: Remote training reduces travel and expense costs. • Savings: $21,216 Program 123: Surplus Disposition: No Reduction CITY MANAGER'S OFFICE PROGRAMS Program 124: City Management • Recommendation: Cut by 10% through streamlined operations. • Justification: Shared reductions ensures equitable budget cuts across departments. • Savings: $41,800 Program 125: Special Projects • Recommendation: Cut by 10% by prioritizing essential initiatives. • Justification: Reduced discretionary spending aligns with fiscal goals. • Savings: $3,400 CITY ADMINISTRATION PROGRAMS Program 126: AWC Dues • Recommendation: Cut by 20% through reduced participation. • Justification: Lowering non -essential memberships contributes to savings. • Savings: $17,000 Program 127: State Lobbying • Recommendation: Cut by 10% through streamlined efforts. • Justification: Reduced lobbying aligns with fiscal priorities. • Savings: $7,200 Program 128: Council Stipend: No Reduction Program 129: Training/Travel Cell Phones: No Reduction ECONOMIC DEVELOPMENT PROGRAMS Program 130: Window Alive/Arts Commission • Recommendation: Eliminate or have private funding (e.g., Moyer) cover costs. • Justification: This non -essential program primarily benefits specific properties which shouldn't be the priority of the city budget. ■ Savings: $10,000 Program 131: Flowers and Flower Baskets • Recommendation: Eliminate or secure sponsorships. • Justification: Discretionary beautification can be privately funded or discontinued. • Savings: $44,300 Program 132: YCDA • Recommendation: Eliminate or find sponsors to fund. • Justification: Non -essential programs can be discontinued to meet savings goals. • Savings: $50,000 Program 133: Fireworks • Recommendation: Eliminate or have other cities/businesses fund. • Justification: Discretionary events can be privately supported or discontinued. • Savings: $15,000 TOTAL ESTIMATED SAVINGS The proposed reductions yield an estimated $9,1.88,000 in savings, with additional potential from programs requiring further analysis (e.g., Jail Contracts, EMT expansion, business sponsorships, etc). This figure excludes savings for programs without specific estimates to ensure conservative projections. These measures prioritize public safety, infrastructure, and essential services while leveraging technology, outsourcing, and revenue generation to minimize community impact. Thank you for considering these proposals. I am available to discuss further or assist with implementation planning. Gunnar Berg (509) 853 6088 City of Yakima Priority Based Budgeting Citizen Community Combined Scores Strategic Program Program Name NmtAnnount Priority Attributes Combined 7SCollection Service (YCCS) 2.000 3.594 4.429 8.022 69 Debt 247.000 3.688 4.171 7.859 71 Court Services byJudicial Officers 6I3.769 3.584 4.228 7.822 13Gang Enforcement 999,000 3.633 4.276 7.810 54Sidewa(ks 105^000 3,688 4.114 7.802 73Jury Service 60,000 3.694 4.200 7794 10 Major Crime Unit: 770,000 3.467 4.286 7.752 11SpoduiAaxaukUnit 1,200.000 3.467 4.286 7.752 G6Street Lighting 170,000 3781 3.843 7.724 12 Property Crime Unit 758,000 3.467 4.257 7724 14Narcotics Unit 632,000 3,400 4.314 7714 77 Building Security 60,000 3.218 4.486 7704 G Traffic Unit: 527'000 3.267 4.400 7.667 7Ootonhon: 870.000 3.400 4.257 7.657 23 Emergency Medical Services (indEMS tax (114'000) 3.200 4.443 7.643 124City Management 418.000 3.489 4.143 7.612 9 Contracts: 1'400'008 3.400 4.200 7.600 70Court Services byJudicial Specialists 688,031 3.219 4.314 7.533 67 Traffic Control Devices 1'423,000 3.500 3.943 7.443 SuncommDispatch Services 1.798^000 3.156 4.276 7.432 15 Forensics Unit 195,000 3.400 3'943 7.343 32 Hazardous Material Team 82'516 3.000 4.236 7235 21Crime Analysis 481,000 3.467 3.743 7.210 1O9Traffic Engineering 250,000 3.063 4.105 7.167 31TechniciaiRescue Team 38,000 3.000 4.118 7.119 120|naurance 51.541 2.344 4.771 7.115 28 Fire Investigation 28^000 3.067 4.024 7,090 27 Fire Mechanics /Facilities 545,000 2.933 4.143 7.076 79Court Record Requests 42`800 2.844 4.143 6.987 GGStreet Maintenance Roadway 3,227.000 3.031 3.943 6.974 81Family and Community Violence Unit 968'692 2.969 4.000 6.969 29Aircraft Rescue and Firefighting 28.800 3.067 3.900 6.967 1O8Development Inspection 200'000 2.968 3.980 6.968 22 Fire Suppression (including revenue) 15`454.000 2.933 4.000 6.933 44Senior Trips & Tours (Revenue included) O 4,000 2.933 6.933 83Traffic and Property Crimes Unit 772,368 2.989 3.943 6.912 104Current Planning &Licensing 729,325 %.SGS 3.933 6.902 74Probation Services (Yakima County) 297,325 2.844 4.067 6.901 35 Fisher Park Golf Course (Revenue included) 0 4.000 2.886 &886 83 Charging Unit 259'914 2.969 3.914 6.883 Legal 98Permit Techs/PPC 265.702 3.969 3.914 6883 105Long Range Planning 364.662 2.969 3.510 6.878 2 KS: 8.500 2.800 4.029 6,829 63Eiecdono 230.000 2.969 3.857 6.826 3GYouth Sports (Revenue included) 61.500 3.250 3.543 6.733 37Youth AcdviUan(Revenue included) 03.624 3.250 3.643 6.793 112Traffic Calming 75.000 3.875 3.848 6.723 30 MSARepair Technicians 13.000 2.867 3.062 6'719 91 Debt Management 80.174 2.344 4.371 6.715 97CodeEnforcammntOff icem 607.910 2.989 3.729 6.697 BGAnnual Comprehensive Financial Report (AC 582.800 2.250 4.429 6.679 76Accounts Receivable 78.000 2,844 3.823 6.672 17Property &Evidence 186.000 3.133 3.514 6.648 128Council Stipend 95,100 3.344 4257 6.601 11OOffice Admin 300'000 2.781 3.819 6,600 111 P,cdmctAdm|n 150'000 2781 3.819 6.600 92Cash 8Investments 143.293 2.344 4.200 6.644 93Capital, Management 177.282 2.344 4.200 6.544 78Administrative duties byManager 176.464 3.469 4.029 6.497 87Annual Comprehensive Financial Report (AC 7.000 2.250 4200 6�450 80Grunto 241.758 2.344 4.057 6.401 GO Traffic Planning 549.000 2.813 3.571 6.384 GU Public Records Act (PRA) 198.316 2.600 3.857 6.357 G1Open Public Meetings Act (OPMA) 188.316 2.500 3.867 6.357 34Washington Fruit Community Center (Revnn/ 319.591 3.063 3.286 8.348 65Snow & Ice Control 459.500 2.906 3,371 6.278 24Community Risk Reduction (including rmvenL 279.000 3.400 3.829 6229 1.002.420 1.594 4.628 6.222 4Community Service Officers: 386.000 2.200 3.943 6.143 26 Fire Training 63^000 3.600 3.543 6.143 86 Budget 499.771 1.969 4.171 6.140 1QRecord Management 870'000 2733 3.400 6.133 45 Park Maintenance (Revenue included) 2.272.823 2781 3.343 &124 20 Training Office 316'000 2.833 3.171 6.105 3PruAcdveUnit: 1,000 3.000 3.057 6.057 25Fire Administration 954.000 2.867 3.157 6.024 46 8aiUioidMaintenance (Revenue included) 237.463 2781 3.229 6.010 72Interpreting Services 160.580 2.094 3.814 6.008 19 Internal Affairs 297.000 2,933 3.057 5.990 62Records Management 175.000 2.500 3.429 5.929 SSCode Inspectors 301.477 2.469 3457 5.926 8Prisoner Transportation: 220'000 2.333 3.643 5.876 95 Plans Examiner 248.600 2.469 3.371 5.840 57Street Cleaning 570.500 2.406 3.400 6.806 12STraininQ/TravoiCell Phones 30000 1.969 3.829 5.797 121 Purchasing Card Program 49.144 1.594 4.200 5.794 43Senior Classes atHarman Center (Revenue i 382.208 2.500 3.257 5.757 8OCommunity Diversion Program 50.000 2.094 3.667 5.751 123Surplus Disposition 58.734 1.504 4.143 5.737 94Leadership 479'180 2.469 3.329 5.697 119Purchase ofGoods &Services 260.317 1.594 4.000 5.594 38AdukSpnks (Revenue included) 36.917 2.500 3.886 6.586 3SCommunity Recreation (Revenue included) 93.814 2.500 3.086 5.586 122Policy & Procedure Training 70.720 1.406 4.086 6.492 88Accounts payable 220.034 1.594 3.857 5.451 89 Purchasing Card Auditing 115.427 1.694 3.829 5.422 47Parks & Recreation Administration 999.509 2.688 2.657 5.345 11GCity Hall Facilities 620.671 1.406 3.938 5,344 114Clean City Code Compliance 294'246 2.313 2.395 5.308 42Aquatic Administration 166.744 2.500 2.800 6.300 84 Community Diversion 80.727 1.844 3.343 5.187 113Graffiti Program 73.600 2.406 3729 5.136 127State lobbying 72.000 1.594 3.395 4.989 1SCrime Free Rental Housing 82.000 2.400 2.571 4.971 48Aquatic Center a1MLKJr. Park 200.000 2.000 2.914 4.914 1O2Payroll Administration 255.980 0.844 4.057 4.901 48Infrastructure /Security 2.012.038 1.406 3.429 4.835 101 Personnel / Benefit Administration 466.644 O.B44 3.943 4787 Indigent Defense 1.760.000 1.781 3.005 4786 6UGeographic Information Systems (G|S) 378.067 1.406 3.371 4,770 116Other operating expenses 431^067 1.844 2.924 4768 134Federal Lobbying 60,000 1.875 2.828 4.704 1 UAV(Dronn): 6,000 1.933 2786 4,889 131 Flowers and flower baskets 44'300 2.281 2.408 4.681 41Franklin Pool (Revenue included) 167.876 2.000 2.629 4,629 33Unmanned Aerial System operators (UAS) 13.000 2.133 2.486 4.619 117HB]CCMaintenance 20.080 0.844 3760 4.604 40 Lions Pool (Revenue included) 479,176 2.008 2.571 4.671 S1Application Development 569.733 1.219 3314 4.533 53Application Support 934.533 1.219 3.314 4.533 132YCDA 50,000 2.031 2.485 4.517 G8Street maintenance Admin 179.000 1.813 2.657 4.470 5SStreet General Services 10'300 1.688 2.771 4.459 62Computer Operations 1.039.248 1.218 3.200 4.419 133Firmworko 15.000 2.031 2.314 4.346 130Windows Alive/Arts Commission 10.000 2.031 2.171 4.203 126Special Project Professional Services 34.000 1.406 2.478 3.885 103Civil Service (Charter,Police &F|ra)/Recruitn 595.681 0.844 3,029 3.872 126 AWC Dues 85,000 0.844 2.743 3.587 5 DUI Enforcement: Grant 8 BOA Building 64 LEOFF1 Police Board EOFF1-Fire Board 07 Development Review 1.000 1.886 2.886 50,000 0.8 712,800 2.3 1,074,763 2 2.772 .469'- Distributed at Meeting: 5_ 6,-2025 Item# 9A 2025-2026 Council Budget Advisory Committee Report to the Yakima City Council Wednesday May 6, 2025 A progress report regarding the committee by: Mike Bailey, CPA (retired) baileyno6@msn.commm Approach The committee's work continues A written report of the efforts to date has been provided to the Council This presentation will follow the outline of that report No decisions are being requested of Council at this time Presentation Outline 1. The Committee 2. Activity of the Committee 3. Discussions and Frustrations 4. Themes 5. Conclusion The Committee Created by the Council in December 2024 to: • Advise the City Council regarding the city's budget, priority -based budgeting, etc. • Learn and understand the budget strategies in light of the council's strategic priorities • Assist and provide advice regarding outreach Provide recommendations to the Council that the committee feels is useful Com tee members are also encouraged to express their individual opinions The Committee Consisted of: • Residents of Yakima • Each member appointed by a member of the City Council • Served without compensation (and put in 16+ hours in meetings (and counting) plus homework) Committee Members: Dirk Bernd — representing Matt Brown Gunnar Berg— representing Reedy Berg Matt Duffy —representing Rick Glenn Angie Girard — representing Janice Deccio Dulce Gutierrez — representing Danny Herrera Jeanna Hernandez —representing Patricia Byers uis Lopez — representing Leo Roy Activity Committee meeting topics 1. Welcome and introductions, a primer on local government budgets -February 13 2. City budgeting objectives and practices - February 19 3. City revenues - February 26 4. Other / related service providers, review of draft citizen survey - March 5 5. City expenditures - Priority based budgeting based on city programs - March 19 1. City programs, Cost drivers and cost issues - March 19 6. Council priorities (strategic goals) and program attributes - March 19 7. City programs - March 26th, April 2nd, April 9th 8. Evaluating city programs and alternative approaches to fiscal resiliency - April and beyond Discussions and Frustrations A passionate group and healthy discussions Topics that were of interest, but time didn't permit include: • Concern over future obligations for financial support of the YMCA pool • A frustration with the lack of clarity around what general revenues of the city are funding in other city funds Frustrations included insufficient time to fully understand city programs • This led to concern over the ways the priority -based budgeting score sheets would be utilized in budgeting • Concerns over how the program attribute scoring related to budget scores Discussions and Frustrations The lack of flexibility in tailoring revenue solutions to the unique characteristics of the City also proved a frustration. Discussions included: • A voted increase in the property tax (in one form or another). A sales taxes would connect the economic activity of those in Yakima to helping pay for services (regardless of property ownership). Maybe the Council should do what it could to address revenue needs and not expect the citizens to understand all the related issues. Discussions and Frustrations Getting a clear picture of the needs of City departments to provide services versus "cuts" that have been endured in the past proved difficult. • Department directors summarized their General Fund programs in person for the committee. Most directors indicated a need to recover from past cuts and the committee reviewed staff levels going back ten years. • "Frozen" positions complicated the discussion (and obscured staffing levels) Discussions and Frustrations Understanding how the city's programs connect to the Council's Strategic Priorities also proved challenging • The committee discussed making this a focus of future work. • Examples include: • More clearly connecting city operations to council goals. Developing connected measures of success to better evaluate effectiveness. Using this data to help inform priorities for future budgets. Themes Revenue Options — As mentioned above the following were discussed: • A property tax vote • levy lid lift, parks district, fire authority or similar approach • Increasing the TBD revenues (as a Council option) Eliminating the automatic CPI inflator in the City Charter for Parks and Streets funding Charging higher fees to non-residents for city services Charging more than the costs of providing services in other jurisdictions (for such things as fire protection, IT services, etc.) Soliciting sponsorships or philanthropic support for certain services Themes Cost cutting— Some committee members went through the City budget and identified ways they could cut the budget by S9m (the amount used as a target in the citizen survey) • Most did not do this, and I did not hear a consensus yet as to what the city should stop doing in the community. Economic Development The committee agreed with and appreciated Vicki Baker's vision of improving the overall economy in Yakima for the benefit of everyone This will take time however and action is needed now to retain the City's strong financial position. Themes Budget approaches • The committee discussed a "Target Based" approach where department leaders would prepare budgets to make the best use of a certain amount of money. • More information on this approach and how it might compliment the priority -based approach was provided. Conclusion The committee's work is on -going in hopes of developing recommendations • A multi -pronged approach will likely prove most effective. Future budgets will likely require similar types of community conversations Mike's ClosingThoug A strong leadership team is now in place • Stability in leadership is essential to make long-term progress. • They can't be successful in a vacuum (each leader must do their part). • Work to establish a healthy culture in the City's workforce is needed. Past decisions have been made that seem inconsistent with Council's intent • Clarity is essential to gain community trust. It seems to me that: The City needs to either raise resources or decide what to stop doing. • This should be a Council decision (with lots of community input). This is the essential policy work Resources AWC (wacities.org) - workshops/training -Association of Washington Cities MRSC (mrsc.org) - webpages & trainings -- Municipal Research and Services Center mrsc.org/financialpolicies mrsc.org/budgeting • Call/email with questions GFOA (gfoa.org/publications) - Government Finance Officers Association • Publication series for elected officials • Best practice series (The Anatomy of a Priority Driven Budget Process) WA State Auditor's Office (sao.wa.gov) • The Center - performance@sao.wa.gov All past audit reports including "findings" and fraud reports