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HomeMy WebLinkAbout09/27/2016 03 Budget UpdateBUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDASTATEMENT Item No. 3. For Meeting of: September 27, 2016 ITEM TITLE: 9:15 a.m. to 10:15 a.m. Budget Update SUBMITTED BY: Cliff Moore, City Manager Cindy Epperson, Director of Finance & Budget Jeff Cutter, City Attorney Scott Schafer, Public Works Director SUMMARY EXPLANATION: a. Aquatic Center & SOZO Sports Complex budget issues • Expected expenses and potential revenue sources for road improvements • Aquatic Center operational deficits b. 2016 Projected Fund Balance c. Impact of "Maintenance Level" numbers on preliminary 2017 budget d. Discussion of target fund balance numbers 2017 - 2021 e. Revenue options for Council consideration f. Council discussion and direction to staff g. 10:15 a.m. to 10:30 a.m. morning break ITEM BUDGETED: STRATEGIC PRIORITY: APPROVED FOR ,, SUBMITTAL: '""`City Manager STAFF RECOMMENDATION: BOARD /COMMITTEE RECOMMENDATION: ATTACHMENTS: Description Upload Date Aquatic & SOZO Budget issues 9120/2016 YMCA letter 912112016 Me 9 -27 -16 Roundtable budget discussion 9/2112016 roundtable spread sheets 9123/2016 May 17, 2016 Council Intern - Revenue Enhancements 9/21/2016 June 7, 2016 Council Item - Study of City Fees Charged 9121 /2016 TBD 9/2112016 Type Backup Material Co r Memo Co r Memo Coasr Memo Backup Material Backup Material Cover Memo Iiial"i6i WIN • WRI 0 0 4 -01 To- City Council UGM-1[11 lmm= 11 ITIMP � ITTI � 111 11 ITIMIL111 11 1 1, 0 0 - Attached are the four alternatives, with the estimated cost to construct each alternative with a traffic signal and with a roundabout. will rr If All 46 JY aa v I Alternative t, Signal Alternative I Roundabout oo a.� A WILE 40 '1 -r- 1. r s PRO _ ` 4 4y V r • ; ;• 1 • Alternative Roundabout rti• F �'� y�.�; r .'�i ..'r. .. � Vii, jl. ..i`• - , �, i 'r.r �. •� i 1 - t r,.. ��� Jam' � � '; • ��;: Ale, L� � a z # � f rI r t .r _ . - r .t .I M . ..n gg W1 Alternative 3 Signal Jve 3 Roundabout FE ■F J. 4 ti 410, r .1 )Ftf FP wmmK- LZ • • 1 Tmmm Alternative 4 Signal F ! �:. 11,11WOM. - N1,74 P1IRJ#IU111-71W5VAPWWRff IC Mug= Funding for this project is being provided by a SIED grant/loan of $1,800,000 ($900,000 grant and $900,000 loan at a 2.625% interest rate). The remaining $1,719,000 is proposed to be funded • a Councilmatic Bond. Jill I ISPILL PREVENTION PLAN iMOBILIZATION (8%) PROJECT TEMPORARY TRAFFIC CONTROL JCLEA�R�(N�GAND �RUB . ING No EXCAVATION INCL. HAUL CRUSHED SURFACING TOP COURSE ASPHALT TREATED BASE No IsM HOT MIX ASPHALT CL. 1/2 IN, PG 64-28 IERCIAL APPROACH MZWC-U-LVEkT 0E, 24 IN. DIAM. �tl 11 REINFORCED CONC. CULV. PIPE, 36 IN. D - JAM M ro .1 N i n# i One ICONCRETE SPILL APRON REPAIR OR REPLACEMENT in This estimate includes a roadway section of 14-11-14 with curb, gutter • both sides and 5-f•• t sidewalks on the west side of the road. The roadway section consists of 6 inches of CSBC, 4 inche of ATIB and 2 inches of HMA 1/2 In. PG 64-28 V l F 1 7' Honorable Mayor and Members of the Yakima City Council Yakima City Hall 129 North 2"'1 Street Yakima, WA 98901 M Progress to date The dream of a state of the art year round aquatic center has been a community priority for decades. Although too large for any single institution to achieve, our partnership has provided the energy, skill 'i-ttrie-the necessa wf a live we ve wo our resitiective Study Session Quesficins and Discussion At Tuesdays study session the Council raised the following questions—some of which require Yakima YAKIMA FAMILY YMCA 5 North Neches Avenue, Yakima WA 98901 P 509 248 1202 F 509 248 0125 www.yakimaymca.org Ruffher, tnere is also a capital contritau-clon requirea combined fund reaches $1,000,000. " # # " UM, a lfj][41 01 combined budget oTS34UUUR1 hNis "isw aq Relis-ugs-in"g-To"ro-fr ROOM annual esurnateAnte rec the city use the same amount. free "Bus to the Pooi" program. alternate sources to help defray these c ts. This is our understanding of the Council's concerns and their status at the Tuesday session. If this list is incomplete or inaccurate we look forward to your additions and corrections. We also look forward to being part of the additional study session mentioned. co n ra OF y Of more Impolfalmy UJ Lilt: t:tItllt* I-VIII13DIIIJEJ VNIU Jldb Pdf-CU tilelf IL — =t4 abilityi ME August 29, 2016 0 111 Fill Public Infrastructure Needs • River Road Reconstruction from ')'4h to 40" Avenues with C& G, swk, drainage, illumination • North 341h Avenue / Fruitvale Boulevard / River Road roundabout • Sanitary Sewer Relocation around building site DOT Functional Classification Map Page I of 1 News Employment Good To Gal Ce Aact Js WSDOT Home Other GeoPoTtals Functional IaSS �/... ,wr WSDOT Functional Classification Map Find add rf orpiaoa •NtRGhtx$r4't�*F to ., i EJ e{klL'€y� #tilt&' &.. tbf A n fist. yam. KG ", : z 4`o - z W River Rd River Rd RSInd River Rd 4666 so } } 4666 "Jittle ay N, z Z, t3att #axvay Modisen Ave rfi�,•e� W J 6t f° egtr FeeltterRd Fetchtrftc# a= 6. y � '. d # Hill or ti#$tawaYSl ` de t e a �y b Gti xr,. 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I' vI Meklntey Ave''?, : e Rtch y Rd r2rrvej Rd A t af6 " Ridley Rd W !. nvoln Ave Sit Uneatn Ave y 46484 ar ItIAYe s e VrUrrcolrnAver) t! tk,1 tf, miUplars €IUyay Jetferso a} w 46 to = JeffersurfAve 1:16,955.+359 e' v m' n w 4 d m PA€xtraeAv NfSi�oT littla : //v w sdot.wa. ov /data/ tools / eo ortal /`* coiifi =l,'unctiolial las la ers== `7B`/` , "-I,ty rfl`/`22�/` A.�/`5BC}`/`2 1%2C2%— 8/25/2016 Memo To: The Honorable Mayor and City Council From: Cindy Epperson, Director of Finance and Budget Date: September 21, 2016 Re: Roundtable discussion on the 2017 budget We have been working on the development of the 2017 budget. As reported previously in the Mid -year 2016 Budget Status Report on August 16, this involves preparing estimates of revenues and expenditures in the current year (2016), as well as next year (2017). The current year estimates are important because they are what determine the beginning reserve or fund balance for the 2017 budget. We have attached for Council consideration a summary of revenue and expenditure estimates for the 3 years from 2015 through 2017, and the resulting effect on General Government fund balance. When we consider just the increase in baseline expenses, expenditures are increasing more quickly than revenues, leaving the projected fund balance at the end of 2017 at only $6.6 million which is about $6 million less than the recommended 16.7% of annual expenditures. We have not yet finished balancing this budget — Departments will be given targets for expenditure reductions depending on Council direction from this meeting. These revenue amounts include estimates for internal utility tax increases, and recommended fee increases for fire inspections and land use actions. If these fee increases are not enacted, an additional $706,000 in expenditure reductions would need to be identified (See spreadsheet). This has been a difficult cycle, since 2 of the 4 major revenues experienced a slow -down in 2015 that is extending into 2016 and 2017. Sales Tax -- After 3 consecutive years of over 6.4% growth in 2012 -2014, the growth rate dropped to 2.9% in 2015. The year -end estimate in 2015 assumed a growth of $690,000 or 4.5 %, but actual growth was only $435,000 or 2.9 %, primarily because of the drought that affected spending patterns in the agricultural community. This was compounded because the 2016 budget was set based on a 4% growth rate on the higher estimate because the downturn happened late in 2015. To date with 9 months through September, sales tax is running 2.6% ahead of that same time frame in 2016. 1 am estimating year end to still come in 3.8% ahead of 2015 (because the last quarter of 2015 and the 11 quarter of 2016 were when the major reductions happened) to be $16,400,000 which is $250,400 less than the $16,650,400 budgeted. This again reduces the base for the estimate going into 2017. The estimate in the 2017 budget is growth of 3.8% or $623,200 to $17,023,200. • Utility Taxes – 2015 actual was below 2014 actual by about $158,000. 2016 is experiencing some minor growth (less than 1 % through the 1St six months of 2016). Factors causing this sluggish activity includes: o The reduction in raw energy prices —these savings are being passed through to the end user of electricity and natural gas. o The trend in telephone usage from voice to data. This includes people dropping "land lines ". The other single major revenue source is Property Tax, which is limited to 1 % growth in the annual levy (the dollar amount we can collect), plus new construction which has been running between 1 and 2 percent each year. The estimate in the 2017 budget is 2.5% (1% plus 1.5% new construction estimate. (1 % is about $178,900). Prior to this slowdown in revenue, several items, both planned and unplanned, required an increase in the total expenditure budget: The Charter amendments to increase Street Capital spending by $2 million and Parks Capital spending by $750,000. No additional revenue was added, however, the debt issue for the Law and Justice facility built in the mid -1990s with annual payments of about $500,000 was paid off, so the revenue source dedicated to that debt service (cable TV utility tax) was moved into General Fund. The Parks initiative came with reductions in operating costs. • The ACLU lawsuit used almost $3 million over the past 3 years, which drove up contributions to the Risk Management Fund. • Implementation of programs aimed at reducing costs to the self- insured medical fund did not materialize as planned. Both the 2016 year end estimate and 2017 budget require significant increases to cover program costs and maintain the minimum operating reserve required by the State Office of Risk Manager. Bargaining units settled at a 2.5% increase in base pay in 2016 and 2017. In this same time frame, inflation as measured by Urban Wage Earners and Clerical Workers index for the West (populations under 1,500,000) grew at an annual rate of 0.2% between June 2014 and June 2015, and 0.4% between June 2015 and June 2016, and is not projected to increase significantly in the near future. In other words, our base payroll is growing 4 times faster than the rate of inflation in these two years. In response to the recession's effect on State pension funds, employer contribution rates have been raised to offset some state pension underfunding, and will require a rate of 12.47% for employees in the PERS system, and 9.03% for LEOFF (Commissioned Police and Fire) employees. Attached is a spreadsheet comparing the total change in General Government Payroll expenses (base payroll only —does not include Overtime, or any retirement/accrued leave cashouts). This spreadsheet shows that the increase in base payroll plus the related benefits exceed the total increase in revenue. • The State Supreme Court mandated reductions in the number of cases handled by indigent defense lawyers, doubling the cost from about $0.5 million to $1.0 million, for 2 external attorneys, and an increase of about $250,000 in the City's Prosecution Division to respond adequately. • Last winter was extremely wet, and we had an incident of snow requiring external plowing both in December of 2015 and January of 2016, each costing about $300,000 in the Street operating budget. We can go for several years without a plowing event, so these are not budgeted annually— Street Fund reserves are anticipated to be used for this purpose when needed. • Other one -time budget hits in 2015 include the severance package of the prior City Manager; and a large medical claim for a City of Yakima inmate housed in the Yakima County jail. The other consideration in budget reduction is what is eligible to be reduced in General Government operations. There are portions of the General Government budget that either are fixed or are paid for by fees specific to the service provided. We call these areas "non - discretionary" because when budget reductions are requested, these areas are exempted because we either are not able to lower expenses (i.e. indigent defense, debt service, utility tax transfers, the annual audit, and prior police pension obligations), or revenue would be reduced. For example, utility billing services are reimbursed 100% by our internal utilities, so reductions to expense will also reduce revenue, resulting in no net change to the General Government reserve balance. We have attached a spreadsheet that summarizes the General Government budget by major Department which excludes the non - discretionary elements of the budget that are either not able to be reduced, or have revenue attached to them. Any recommended reductions would then need to come out of the "discretionary' budgets. Next Steps The preliminary 2017 base budget, even including the proposed fee increases, leaves the projected 2017 ending fund balance at just over $6.6 million. That would be a reduction of nearly $300,000 from the 2016 ending fund balance. Staff believes that further erosion of our fund balance position would put the City's bond rating in jeopardy. Staff recommends that Council establish a target for the 2017 ending fund balance of between $7.5 and $8.0 million. Targeted budget cuts of approximately 1.5% – 2% would be required of general government expenditures would be required to meet this target. This would likely lead to staff reductions of between 8 –12 positions. Council will need to determine if they are willing to impose additional revenue from either the fee report or the tax revenue report. As stated in the recent SOZO and Aquatic Center study session, funding for street improvements for both of these projects has not been identified, although Transportation Benefit District funding could be used for those projects, as well as improvements to North First Street, a residential chip seal program and additional street lighting. From your direction given at this meeting, management will continue to develop the 2017 budget. City of Yakima GG RESERVES USAGE AND BALANCE COMPARISONS As of 9/19/16 -- (Budget still in development) Beginning Reserve Balance (1) 2015 Actual $ 9,412,400 (2) 2016 Amended Budget (3) 2016 Year -End Estimate as of 9/19/16 $ 7,152,826 $ 7,152,826 Revenue 70,265,428 73,273,325 73,609,885 Total Resources $ 79,677,827 $ 80,426,151 $ 80,762,711 Expenditure Budget 72,525,002 73,260,550 73,847,309 End. Reserve Balance $ 7,152,826 $ 7,165,601 $ 6,915,402 % of Annual Expenditures 9.9% 9.8% 9.4% Inc /(Dec) in Reserves f/ Prior Yea $ (2,259,574) $ 12,775 $ (237,424) % of Expenditure Budget (3.1 %) 0.0% (0.3 %) (4) 2017 (5) Proposed Budget Variance as of 9/19/16 (4 -2) $ 6,915,402 75,754,464 $ 2,481,139 $ 82,669,866 $ 2,243,715 76,039,207 2,778,657 $ 6,630,660 8.7% $ (284,743) (0.4 %) City of Yakima Revenues in General Government Funds from Fee Adjustments 2017 Budget Account Name Water Utility Tax Wastewater Utility Tax Refuse Utility Tax Stormwater Utility Tax Subtotal Utility Taxes Fire Inspection Fee Zoning and Subdivision Fees Total General Fund Estimate Before Estimate After Adjustment Adjustment Increase $ 1,749,900 $ 1,870,500 $ 120,600 4,171,500 4,333,000 161,500 994,800 1,048,700 53,900 130,000 200,000 70,000 7,046,200 7,452,200 406,000 - 250,000 250,000 40,000 90,000 50,000 $ 7,086,200 $ 7,792,200 $ 706,000 City of Yakima General Government Base Payroll Changes 2016 vs. 2017 Base Deferred Longevity FICA Retire Wrk Comp Medical Dental Life TOTAL Salary Comp Medicare Unemploy Insur Insur Insurance 2016 Adopted Budget Gen Fund $ 30,268,784 $ 1,158,497 $1,243,457 $ 1,169,044 $ 2,375,241 $ 579,508 $ 4,897,784 $471,518 $ 121,732 $ 42,285,565 Gen Fund CJ 916,748 35,651 24,912 35,985 71,102 17,779 155,051 16,981 3,809 1,278,018 Parks 1,659,834 29,450 44,145 132,150 149,145 87,986 194,564 25,326 5,776 2,328,376 Streets 1,650,579 42,886 50,511 131,475 194,977 70,675 278,317 33,353 7,924 2,460,697 34, 495, 945 1,266,484 1,363,025 1,468,654 2,790,465 755,948 5,525,716 547,178 139,241 48, 352, 656 2017 9119116 Budget Gen Fund 31,195,270 1,184,583 1,284,734 1,194,708 2,541,591 591,820 5,748,282 513,273 122,798 44,377,059 Gen Fund CJ 917,474 34,486 29,899 39,468 77,990 16,725 168,817 16,693 3,546 1,305,098 Parks 1,634,856 28,142 37,832 129,496 132,915 82,728 213,762 26,377 5,532 2,291,640 Streets 1,707,025 43,043 53,565 135,841 213,332 71,079 325,785 38,246 7,924 2,595,840 Total GG 35,454,625 1,290,254 1,406,030 1,499,513 2,965,828 762,352 6,456,646 594,589 139,800 50,569,637 Increase -Amt $ 958,680 $ 23,770 $ 43,005 $ 30,859 $ 175,363 $ 6,404 $ 930,930 $ 47,411 $ 559 $ 2,216,981 Increase- Percentage 2.8% 1.9% 3.2% 2.1% 6.3% 0.8% 16.8% 8.7% 0.4% 4.6% Total General Government Revenue Increase 2016 Year -End Estimate $ 73,609,885 2017 Preliminary Budget (as of 9/19) 75,754,464 Increase Amount $ 2,144,579 % 2.9% City of Yakima General Government Budget Departments 2016 2017 Budget Amended Description Budget City Administration $ 5,565,093 Human Resources 648,774 Legal 1,645,037 Municipal Court 1,427,119 Finance 2,522,316 Community Development 2,997,570 Police 26,538,096 Fire 12,114,523 Engineering 833,710 Parks & Recreation 5,468,072 Streets 5,090,088 Total General Government $ 64,850,397 Non - Discretionary Factors 0 2017 Proposed Budget as of 9/19/16 5,627,643 699,137 1,724,214 1,531,046 2,627,699 3,138,618 27,690,083 12,881,582 783,620 5,501,744 5,388,627 $ 67,594,013 Description 2016 Budget 2017 Budget Indigent Defense $ 935,500 $ 965,500 Transfers (primarily debt service and 4,839,545 4,967,754 utility tax allocations) Police Debt 789,037 789,037 Fire Debt 196,073 196,072 State Examiner - audit 113,000 117,000 Police Pension 1,104,060 964,997 Utility Services (reimbursed by utilities) 1,517,937 1,529,834 Vacancy contingency (1,085,000) (1,085,000) Total Non - Discretionary $ 8,410,152 $ 8,445,194 Total General Government Budget $ 73,260,550 $ 76,039,207 City of Yakima Proposed Utility Bill Paid by a Typical Household Cost per billing cycle: Water 2 Month Ready to serve 12 units - Wastewater 2 Month Ready to serve 12 units - Refuse 2 Month 32 gal. Cart 2 Month 96 gal. Cart Stormwater 2 Month Ready to serve Total Bi- monthly bill Increase 2016 11.68 2017 11.96 2018 12.26 2019 12.56 2020 168.62 $ 175.70 $ 179.52 $ 184.66 $ 12.40 $ 17.54 $ 19.03 $ 20.64 $ 20.64 $ 20.64 17.52 19.05 20.88 20.88 20.88 $ 35.06 $ 38.08 $ 41.52 $ 41.52 $ 41.52 $ 41.24 $ 42.46 $ 43.74 $ 45.06 $ 46.40 36.12 37.20 38.28 39.48 40.68 $ 77.36 $ 79.66 $ 82.02 $ 84.54 $ 87.08 $ 32.04 $ 34.30 $ 35.20 $ 36.10 $ 37.00 $ 36.64 $ 39.20 $ 40.20 $ 41.20 $ 43.50 $ 7.16 $ 11.68 $ 11.96 $ 12.26 $ 12.56 $ 156.22 $ 168.62 $ 175.70 $ 179.52 $ 184.66 $ 12.40 $ 7.08 $ 3.82 $ 5.14 Monthly billing charge $ 78.11 $ 84.31 $ 87.85 $ 89.76 $ 92.33 Monthly Increase $ 6.20 $ 3.54 $ 1.91 $ 2.57 Assumptions: Water & Wastewater - Average family usage of water per billing cycle 12 Stormwater - 1 ERU, Equivalent Residential Unit of impervious surface Refuse - 96 gal. Cart MEMORANDUM Date: May 12, 2016 To: The Honorable Mayor and Members of Yakima City Council From: Jeff Cutter, Interim City Manager Cindy Epperson, Director of Finance & Budget Subject: Revenue Enhancement Options Transmittal The City's recent General Government (i.e. tax - supported funds) financial picture has had some challenges which were reported in the Five -Year Financial Plan that went to City Council on February 23, 2016, and the 2015 Year -end Budget Report that went to City Council on April 5, 2016. In response to these reports, City Management identified budget reductions in the amount of about $750,000 to help us balance the 2016 budget — this report also went to City Council on April 5, 2016. Since the updated Five -Year Financial Plan did not have "room" in the future annual budgets for debt service or operating expenses for new projects, in order to accomplish these initiatives there are basically two options — reduce existing expenditures or add revenues. (Discussions on current revenue streams are found in the Five -Year Financial Plan and Section II in the 2016 Preliminary Budget Summary. The 2016 Adopted Budget also details every General Fund revenue account at the end of the Citywide Summaries section.) Members of the City Council have requested a report on potential new or enhanced revenue sources currently authorized by Washington State Law. Enclosed you'll find a comprehensive list of revenue sources available to the City. The list includes a short name /description of the revenue option; a reference to the legal authority for the revenue option (RCW stands for the Revised Code of Washington — if the City already has the revenue in place at a rate that is less than the statutory maximum, a reference to the Yakima Municipal Code or YMC is also included); a summary of the authorized purposes and limitations; a summary of how the revenue could be established (i.e. vote, Council action, etc.); and an estimate of potential yield that the revenue may generate based on 2016 conditions. In addition to the tax options, City Management is also reviewing fee structures to see if there are some updates needed. The City's adopted Financial Management Policy indicates that all fees should be reviewed at least every two years. We are still compiling the information on General Government fees, and hope to bring a follow -up report at the June 7, 2016 City Council meeting. The attached report shows resource options that the City could implement to generate additional funds to maintain core, essential services for our citizens, if it is determined that expenditure reductions (i.e. service /program reductions) may be less acceptable than revenue enhancements. Enclosure — "Major Sources of Revenue Authorized for Municipal General Government Operations" Major Sources of Revenue Authorized for Municipal General Government Operations [This chart presents some options provided by existing state law. No recommendation pro or con or prioritization is intended to be suggested by inclusion of or sequence of items in this chart.] REVENUE AUTHORITY PURPOSES AUTHORIZED HOW ESTABLISHED POTENTIAL YIELD OPTION LIMITATIONS [2016 estimate] Property Tax —Levy General Government Only $219,000 available. Lid Lift By Voter Approval $0.0375/ thousand raises RCW 84.55.050 To bring the levy to the statutory max. -2 Simple Majority Election $219,000 annually options, both can be multi -year $3.75/yr on $100,000 AV Property Tax -Voted General Government- Capital $0.20/ thousand raises Bond Issue -- WA Const., By Voter Approval $1,166,000 annually Maximum 1 % added Art 8 Sec 6 Debt Service supported by excess $20 /yr on $100,000 AV to 1.5% non -voted RCW 39.36.020 property tax levy 40% Voter Turnout -60% super - majority Pays for $16m project over Available Debt Capacity ($55m) 20 years Tax > 6.0% on Private By Voter Approval Utilities, i.e. Electricity, Telephone RCW 35.21.870 5.50.050- 060 YMC General Government Simple Majority Election $1,220,000 annually per each 1 % Natural Gas to exceed 6% Tax > 6.0% on Cable TV (rate currently at Cable Communications Rate is not restricted, but must not be Ordinance passed by City Council $110,000 annually 6 %- -the same as other Policy Act of 1984 y unduly discriminatory against cable (may require voter approval if deemed "discriminatory") o per each 1 % private utilities) 5.50.065 YMC operators and subscribers. Local Business and $4,600,000 annually Occupation Tax [$2,300,000 per each .1 %] Tax < 0.2% of gross Ordinance passed by City Council (less $500,000 -loss of receipts RCW 35.21.710 General Government Subject to Referendum Business License Fees) (needs $250,000 in new admin cost for collection) Cje Revenue option chart 5/10/201611:58 AM Page 1 of 3 REVENUE AUTHORITY PURPOSES AUTHORIZED HOW ESTABLISHED POTENTIAL YIELD OPTION LIMITATIONS [2016 estimate] 5.52 YMC Fees increased in 1988 for Sundome Debt Ordinance Passed by Ci ty Council Currently sliding scale Business License Fee increase RCW 35.22.280 32 ( ) Service. (about 20% currently obligated (can only be imposed and increased as long as no B &O tax is enacted —see based on employee count- - (no cap in RCW) for this purpose) above) 10% = $55,000 In Lieu Tax on Public General Government Utilities, i.e.Refuse, Water, Wastewater, Ch. 7.64 YMC o Current rates — 20 /o Water and $440,000 annually Stormwater (No cap in RCW) Wastewater, 15% City Refuse, 16% Ordinances Passed by City Council per each 1% Yakima Waste, 6% Stormwater (Parks now receives 3.5 %) Tax < 6.0% on Private Ordinance by City Council to Remove $820,000 annually if Utilities, i.e. RCW 35.21.870 General Government $4,000/customer/mo. lid removed totally Electricity, Telephone 5.50.050- 060 YMC (affects primarily larger Natural Gas Note: $4,000 lid unchanged since 1994 mfg. businesses) Impose Brokered $113,000 annually if Natural Gas Utility RCW 35.21.870 imposed with no lid -- Tax—up to 6% General Government Ordinance Passed by City Council $54,000 w /$4k lid WAC 458 -20 -17902 (affects primarily larger mfg. businesses) Admissions Tax $450,000 annually Max 5 % RCW 35.21.280 General Government Ordinance Passed by City Council (estimate based on similar cities) Gambling Taxes- RCW 9.46.110 Primarily for law enforcement $760,000 annually Social Card Games Ordinance Passed by City Council (from 10% to 20 %) 5.49.020 YMC Maximum 20% of gross receipts ($76,000 each 1 %) Transportation Ordinance Passed by City Council (up Benefit District -- RCW 36.73 & Transportation Purposes to $50 per vehicle -only after $20 fee in effect for 24 mos. & $40 for 24 mos. $1,100,000 annually Vehicle License Fee 82.80.140 including streets Over $40 subject to referendum ($20 /Vehicle) (up to $100 per qualified vehicle) Simple Majority Election -$50 -$100 Cje Revenue option chart 5/10/201611:58 AM Page 2 of 3 REVENUE AUTHORITY PURPOSES AUTHORIZED HOW ESTABLISHED POTENTIAL YIELD OPTION LIMITATIONS [2016 estimate] Transportation By Voter Approval Benefit District— RCW 36.73.040 & Transportation Purposes Simple Majority Election $1,900,000 annually Sales & Use Tax 82.14.0455 including streets Per 0.1% (up to 0.2 %) 10 year limit, except to repay debt Commercial Parking Tax- Various RCW 82.80.030 Transportation Purposes including streets Ordinance Passed by City Council Unknown methodologies Reimbursement Contracts for Street, Street projects which the owners elect to Ordinance Passed by City Council that Road, and Highway RCW 35.72 install as a result of ordinances that requires certain projects as a Can only be determined in Projects re q uire the projects as a prerequisite to prerequisite to further property relation to specific projects further property development development Local Improvements, including streets, Local Improvement alleys, streetlights, sidewalks, etc. Petition by effected Landowners, Districts (LIDs) RCW 35.43 "...levy and collect special assessments Then Enacted by City Council by Can only be determined in relation to specific projects on property specially benefited thereby Ordinance to pay the whole or any part of the expense " RCW 35.43.040 Fire, Parks, Schools, Street Capital Impact Fees to pay RCW 82.02.050 - Projects for Improvements Necessitated b New Y .090 cities ... that plan under RCW 36.70A.040 i.e. Growth M t Act are ( � ) Ordinance Passed by City Council Can only be determined in relation to specific projects Development authorized to impose impact fees on development activity as part of financing for public facilities' Cje Revenue option chart 5/10/201611:58 AM Page 3 of 3 MEMORANDUM Date: June 2, 2016 To: The Honorable Mayor and Members of Yakima City Council From: Jeff Cutter, Interim City Manager Cindy Epperson, Director of Finance & Budget Subject: Transmittal of Study of Fees Charged by the City of Yakima The City's recent General Government (i.e. tax - supported funds) financial picture has had some challenges which were reported in the Five -Year Financial Plan that went to City Council on February 23, 2016, and the 2015 Year -end Budget Report that went to City Council on April 5, 2016. In response to these reports, City Management identified budget reductions in the amount of about $750,000 to help us balance the 2016 budget — this report also went to City Council on April 5, 2016. Since the updated Five -Year Financial Plan did not have "room" in the future annual budgets for debt service or operating expenses for new projects, in order to accomplish future Council initiatives there are basically two options — reduce existing expenditures or add revenues. (Discussions on current revenue streams are found in the Five -Year Financial Plan and Section II in the 2016 Preliminary Budget Summary. The 2016 Adopted Budget also details every General Fund revenue account at the end of the Citywide Summaries section.) Members of the City Council requested a report on potential new or enhanced revenue sources currently authorized by Washington State Law. At the May 17, 2016 meeting a comprehensive list of revenue sources available to the City was presented to Council. That presentation primarily included options to impose or increase taxes. The other potential increases in revenue could come in the form of adjusted fees. The City's adopted Financial Management Policy indicates that all fees should be reviewed at least every two years. To assist in the delineation of a tax versus a fee, taxes are imposed for the primary purpose of raising revenue, with the resultant funds spent on general government services; while fees are imposed for the primary purpose of covering the cost of providing a service, with the funds raised directly from those benefitting from a particular provided service. The other type of revenue included in this report is a fine or penalty which is imposed for the primary purpose of penalizing or regulating behavior, generally imposed as part of judicial proceedings, with resultant revenue a secondary consideration. The attached report summarizes fees charged by General Government operations, organized in the following way: "Summary of General Government Fees" table which includes a description of the fees and related operational division, the date the fees were last changed, and the 2016 budgeted revenue A section including memorandums or other supporting documentation An Exhibit titled "Detail of Fees and Charges by Operating Division" that lists each account included in the General Ledger sorted by division and presented in the same order as the summary Most of the areas are not necessarily proposing adjustment to their fees. The areas that are recommending review include: • the possible imposition of a fee for fire inspections; • a more thorough review of planning /land use fees; • an increase in Police service fees to match state law; and • further review of regulatory fees and licenses Staff is respectfully requesting Council's direction before pursuing changes to fee schedules. The timing is such that we can identify additional revenue to be included in next year's budget to support Council goals, as we are about a month away from starting the 2017 budget development process. Between the revenue enhancement options presented on May 17, and this report on fees, the City could generate additional funds to maintain core, essential services for our citizens, if it is determined that expenditure reductions (i.e. service /program reductions) may be less acceptable than revenue enhancements. City of Yakima Summary of General Government Fees Description Date last 2016 Budget Changed City Clerk -Copy charges for Public Disclosure Requests: $400.00 According to State law, the City can only charge fees related to copying records —full cost reimbursement for time spent is not allowed. Code Administration Fees and Permits: State law allows cities to 2015 $1,223,720 "collect.. reasonable fees from an applicant for a permit or other governmental approval to cover the cost to the city ... of processing applications, inspecting and reviewing plans, or preparing detailed statements required by RCW 43.21C "(i.e. SEPA) – RCW 82.02.020. We had a CPI adjustment in the building permit fee structure, but that was removed in 2015. A memo is attached. Economic Development Revenue: Concession revenue reimbursement Event $110,000 rates are negotiated with vendors that provide goods and services at specific City- sponsored events. Engineering Fees and Permits: An attached memo explains the permits Permits $536,100 charged by engineering. Engineering also charges their time worked on 2013 & projects either back to the developer or our City projects. These charges 2014 are based on payroll costs, and are modified annually. Fines - Municipal Court: These are set at the State level (except for Follows $1,642,110 Parking Enforcement fines). The State Supreme Court sets the ranges state law and Municipal Court Judges rule on individual cases. Over half of the fines we collect get remitted to the state. The breakdown of a standard $136 traffic infraction penalty is summarized in the attached presentation from the Washington Courts website, titled "Anatomy of a Standard Infraction Penalty ". Fines- Parking Infractions: 2005- $65,000 • Non - handicap can be set by Council ordinance. They have regular (revenue not historically been used for enforcement costs and lighting in the 2015- split City -owned lots. $20 is the charge for most parking infractions. handicap between • Handicap infraction fines are set by state law and the charge is non - now $450. handicap The new parking citation management system is set up to allow for and escalating fees based on number of citations, should Council want to handicap) review parking citations. Fire: Revenue generated by the Fire Department includes primarily 2016 $1,247,992 contracts for services. We cover Fire District 10 and Union Gap by contract. We also charge other agencies for use of the Training Center. Inspection Fees are not currently imposed. See attached memorandum from the Fire Chief. City of Yakima Summary of General Government Fees Information and Technology (IT): IT provides services to other agencies 2015 $361,466 primarily by contract. Most multi -year contracts have a CPI adjustment until the next contract is negotiated. Parks and Recreation: A memorandum and fee schedules are attached. 2013 $780,865 The Parks and Recreation staff is not recommending a fee increase at this time. Planning Fees: Set by Council — See attached memorandum and detail. 2012 $61,100 The Planning Division would support reviewing a change to these fees with City Council. Police: Police has several areas that generate revenue. 2013 • They have contracts for law enforcement services (i.e. School $767,000 Resource Officers, or Overtime reimbursement). These are determined primarily by the actual personnel costs incurred. • They also have fees for direct service, which would be the focus $60,580 of this exercise. These fees are set by local authority, with caps set by state law. A Memorandum from the Police Services Manager is attached. PD would support an increase in the fees to match state law. • There are programs to reduce jail costs, including the Home $164,200 Detention program, and pursuing reimbursements from Medicaid /Medicare or private medical insurance to assist in covering inmate medical expenses. Purchasing: Currently in a contract with Yakima County, with total 2016 $298,737 divisional costs shared based on staff time. The County recently notified us that they are not renewing the contract in 2017, so we will be bringing a proposal to Council during the 2017 budget development process. Streets & Traffic Engineering: Part of the Stormwater program is street 2010 $200,000 sweeping to reduce pollutants before they reach surface and ground waters. An annual contribution to pay for a portion of that cost was started in 2010. Other charges for services include miscellaneous interfund work that As Needed $40,850 streets might do in support of capital projects and external recovery related to accident damage. INTEROFFICE MEMO DATE: May 27, 2016 TO: Cindy Epperson, Finance Director FROM: Joe Caruso, Code Administration Manager SUBJECT: Potential Fee Increases In 2015, the City Of Yakima collected $1,196,953 in permit and regulatory fees. With the directive from the State Auditor with respect to charging fees that are supported by actual costs, the Building Permits, and related permits cost is very close to that requirement. We do believe the following license costs and regulatory fees could be raised, keeping in mind the State's directive. The complete list of building related fees follow. Date YMC Type of License or Permit Amount Municipal Code Ref last changed Home Occupation & Daycare $ 42.90 - $1,285 YMC 15.04.020 2008 Pawnbroker License $ 114.26 YMC 5.54.020 1988 Sign Permits $ 83.94 YMC 11.04.030 Sidewalk Cafe Permit $ 50.00 YMC 5.80.20 1997 Right of way Use Permit $ 50.00 YMC 8.20.030 1986 Peddler Solicitor $ 25.00 YMC 5.56.026 1996 Taxi Cab $ 55.00 YMC 5.78.060 Annual CPI The complete list of building related fees follow. RATES MECHANICAL PERMIT FEES PLUMBING PERMIT FEES Base Mechanical $ 23.86 Base Plumbing $ 31.82 A/C Unit $ 10.36 Atmospheric Breaker $ 8.04 AH <10,000 CFM $ 13.54 Backflow Device (RPBA or DCVA) <2" $ 11.23 AH >10,000 CFM $ 18.41 Backflow Device (RPBA or DCVA) >2" $ 24.95 Commercial Incinerator $ 104.37 Bar Sink $ 11.23 Domestic Incinerator $ 25.85 Bathtub $ 11.23 Dryer Vent $ 10.36 Catch Basin (Stormwater Retention) $ 11.23 Electric, Baseboard, or Suspended Heaters $ 17.51 Clothes Washer $ 11.23 Evaporative Cooler $ 13.54 Dishwasher - Residential $ 11.23 Furn/Htr <100,000 BTU $ 17.51 Dishwasher - Commercial $ 11.23 Furn/Htr >100,000 BTU $ 20.69 Floor Drain $ 11.23 Gas Boiler <100,000 BTU $ 17.58 Hose Bib $ 11.23 Gas Boiler >100,001 <500,000 BTU $ 29.38 Kitchen Sink $ 11.23 Gas Boiler >500,001 <1,000,000 BTU $ 39.00 Kitchen Sink 3 Compartment $ 11.23 Gas Boiler >1 1000,001 <1,750,000 BTU $ 53.18 Laundry Tray $ 11.23 Gas Boiler >1,750,001 BTU $ 89.02 Lavatory (Basin) $ 11.23 Gas Fireplace/Log/Heat Stove $ 17.51 Lawn Sprinkler (Including Backflow) $ 9.83 Gas Grill $ 10.36 Miscellaneous $ 11.23 Gas Piping 1 -4 Outlets $ 8.04 Mop Sink $ 11.23 Gas Piping >5 Outlets (each additional outlet) $ 3.20 Pretreatment Interceptor $ 19.07 Gas Range $ 10.36 Repair /A1t.Drain/Vent Piping $ 11.23 Haz Piping 1 -4 Outlets $ 3.20 Roof Drain $ 11.23 Haz Piping 5+ Outlets (each) $ 1.70 Sampling Port $ 11.23 Heat Pump $ 10.36 Sewage Pump $ 11.23 Kitchen Exhaust Fan $ 10.36 Sewer Repair $ 21.53 LP Tank/Res. <125 gal ( +base & piping) $ 10.36 Shower $ 11.23 Miscellaneous $ 10.36 Side Sewer $ 21.53 Non Haz Piping 1 -4 Outlets $ 3.20 Sink $ 11.23 Non Haz Piping 5+ Outlets (each) $ 0.82 Supplemental Permits $ 16.01 Pellet Stove $ 37.06 Urinal $ 11.23 Repair /Alt. /Addn. to a Listed Appliance $ 19.45 Water Closet Tank Type $ 11.23 Residential Tank Abandonment (base only) $ 23.86 Water Closet Flushometer Type $ 11.23 Supplemental Permit fee $ 7.29 Water Fountain $ 11.23 Type I / II Commercial Hood $ 17.51 Water Heater $ 11.23 Vent Fan (laundry/bath) $ 10.36 Water Piping/Service $ 11.23 Vent Systems $ 10.36 FIRE PERMIT FEES Wood Stove $ 37.06 Fire Inspect (Min 1 Hr) $ 47.00 Fire Plan Review (Min 1 Hr) $ 47.00 MISCELLANEOUS PERMIT FEES Fire Re -Insp (Min 1 -Hr) $ 47.00 Additional Plan Review (Min 1/2 Hr) $ 81.43 Re- Inspection Fees $ 81.43 Commercial Re -Roof <10,000 sq ft $ 144.82 Residential Re -Roof $ 79.44 Demolition Permit $ 79.44 Sign Permit Fee $ 79.44 Swimming Pools $ 377.26 Single Wide Manufactured Home $ 319.24 Inspections 2 Hr Min $ 81.43 Double Wide Manufactured Home $ 119.15 Master Plan Review 10% of Permit Fee Triple Wide Manufactured Home $ 435.35 Move Permits $ 309.12 $4.50 STATE OF WASHINGTON SUR- CHARGE APPLIES TO ALL BUILDING PERMITS (EXCEPT SCHEDULE OF FEES -Table 1 S.F. Valuation from Table 3 Building Permit Plan Review Subtotal 1 - 500 19.29 12.54 31.73 501 - 600 21.88 14.22 36.1 601 - 700 24.47 15.91 40.38 701 - 800 27.06 17.59 44.65 801 - 900 29.65 19.27 48.92 901 - 1,000.00 32.24 20.96 53.2 1,001.00 - 1,100.00 34.83 22.64 57.47 1,101.00 - 1,200.00 37.42 24.32 61.74 1,201.00 - 1,300.00 40.01 26.01 66.02 1,301.00 - 1,400.00 42.6 27.69 70.29 1,401.00 - 1,500.00 45.19 29.37 74.56 1,501.00 - 1,600.00 47.78 31.06 78.84 1,601.00 - 1,700.00 50.37 32.74 83.11 1,701.00 - 1,800.00 52.96 34.42 87.38 1,801.00 - 1,900.00 55.55 36.11 91.66 1,901.00 - 2,000.00 58.14 37.79 95.93 2,001.00 - 3,000.00 69.71 45.31 115.02 3,001.00 - 4,000.00 81.28 52.83 134.11 4,001.00 - 5,000.00 92.85 60.35 153.2 5,001.00 - 6,000.00 104.42 67.87 172.29 6,001.00 - 7,000.00 115.99 75.39 191.38 7,001.00 - 8,000.00 127.56 82.91 210.47 8,001.00 - 9,000.00 139.13 90.43 229.56 9,001.00 - 10,000.00 150.7 97.96 248.66 10,001.00 - 11,000.00 162.27 105.48 267.75 11,001.00 - 12,000.00 173.84 113 286.84 12,001.00 - 13,000.00 185.41 120.52 305.93 13,001.00 - 14,000.00 196.98 128.04 325.02 14,001.00 - 15,000.00 208.55 135.56 344.11 15,001.00 - 16,000.00 220.12 143.08 363.2 16,001.00 - 17,000.00 231.69 150.6 382.29 17,001.00 - 18,000.00 243.26 158.12 401.38 18,001.00 - 19,000.00 254.83 165.64 420.47 S.F. Valuation from Table 3 Building Permit Plan Review Subtotal 19,001.00 - 20,000.00 266.40 173.16 439.56 20,001.00 - 21,000.00 277.97 180.68 458.65 21,001.00 - 22,000.00 289.54 188.2 477.74 22,001.00 - 23,000.00 301.11 195.72 496.83 23,001.00 - 24,000.00 312.68 203.24 515.92 24,001.00 - 25,000.00 324.25 210.76 535.01 25,001.00 - 26,000.00 332.62 216.2 548.82 26,001.00 - 27,000.00 340.99 221.64 562.63 27,001.00 - 28,000.00 349.36 227.08 576.44 28,001.00 - 29,000.00 357.73 232.52 590.25 29,001.00 - 30,000.00 366.10 237.97 604.07 30,001.00 - 31,000.00 374.47 243.41 617.88 31,001.00 - 32,000.00 382.84 248.85 631.69 32,001.00 - 33,000.00 391.21 254.29 645.5 33,001.00 - 34,000.00 399.58 259.73 659.31 34,001.00 - 35,000.00 407.95 265.17 673.12 35,001.00 - 36,000.00 416.32 270.61 686.93 36,001.00 - 37,000.00 424.69 276.05 700.74 37,001.00 - 38,000.00 433.06 281.49 714.55 38,001.00 - 39,000.00 441.43 286.93 728.36 39,001.00 - 40,000.00 449.80 292.37 742.17 40,001.00 - 41,000.00 458.17 297.81 755.98 41,001.00 - 42,000.00 466.54 303.25 769.79 42,001.00 - 43,000.00 474.91 308.69 783.60 43,001.00 - 44,000.00 483.28 314.13 797.41 44,001.00 - 45,000.00 491.65 319.57 811.22 45,001.00 - 46,000.00 500.02 325.01 825.03 46,001.00 - 47,000.00 508.39 330.45 838.84 47,001.00 - 48,000.00 516.76 335.89 852.65 48,001.00 - 49,000.00 525.13 341.33 866.46 49,001.00 - 50,000.00 533.50 346.78 880.28 50,001.00 - 51,000.00 539.29 350.54 889.83 51,001.00 - 52,000.00 545.08 354.3 899.38 52,001.00 - 53,000.00 550.87 358.07 906.94 53,001.00 - 54,000.00 556.66 361.83 918.49 S.F. Valuation from Table 3 Building Permit Plan Review Subtotal 54,001.00 - 55,000.00 562.45 365.59 928.04 55,001.00 - 56,000.00 568.24 369.36 937.60 56,001.00 - 57,000.00 574.03 373.12 947.15 57,001.00 - 58,000.00 579.82 376.88 956.70 58,001.00 - 59,000.00 585.61 380.65 966.26 59,001.00 - 60,000.00 591.40 384.41 975.81 60,001.00 - 61,000.00 597.19 388.17 985.36 61,001.00 - 62,000.00 602.98 391.94 994.92 62,001.00 - 63,000.00 608.77 395.70 1,004.47 63,001.00 - 64,000.00 614.56 399.46 1,014.02 64,001.00 - 65,000.00 620.35 403.23 1,023.58 65,001.00 - 66,000.00 626.14 406.99 1,033.13 66,001.00 - 67,000.00 631.93 410.75 1,042.68 67,001.00 - 68,000.00 637.72 414.52 1,052.24 68,001.00 - 69,000.00 643.51 418.28 1,061.79 69,001.00 - 70,000.00 649.30 422.05 1,071.35 70,001.00 - 71,000.00 655.09 425.81 1,080.90 71,001.00 - 72,000.00 660.88 429.57 1,090.45 72,001.00 - 73,000.00 666.67 433.34 1,100.01 73,001.00 - 74,000.00 672.46 437.10 1,109.56 74,001.00 - 75,000.00 678.25 440.86 1,119.11 75,001.00 - 76,000.00 684.04 444.63 1,128.67 76,001.00 - 77,000.00 689.83 448.39 1,138.22 77,001.00 - 78,000.00 695.62 452.15 1,147.77 78,001.00 - 79,000.00 701.41 455.92 1,157.33 79,001.00 - 80,000.00 707.2 459.68 1,166.88 80,001.00 - 81,000.00 712.99 463.44 1,176.43 81,001.00 - 82,000.00 718.78 467.21 1,185.99 82,001.00 - 83,000.00 724.57 470.97 1,195.54 83,001.00 - 84,000.00 730.36 474.73 1,205.09 84,001.00 - 85,000.00 736.15 478.50 1,214.65 85,001.00 - 86,000.00 741.94 482.26 1,224.20 86,001.00 - 87,000.00 747.73 486.02 1,233.75 87,001.00 - 88,000.00 753.52 489.79 1,243.31 88,001.00 - 89,000.00 759.31 493.55 1,252.86 S.F. Valuation from Table 3 Building Plan Review Subtotal Permit 89,001.00 — 90,000.00 765.10 497.32 1,262.42 90,001.00 — 91,000.00 770.89 501.08 1,271.97 91,001.00 — 92,000.00 776.68 504.84 1,281.52 92,001.00 — 93,000.00 782.47 508.61 1,291.08 93,001.00 — 94,000.00 788.26 512.37 1,300.63 94,001.00 — 95,000.00 794.05 516.13 1,310.18 95,001.00 — 96,000.00 799.84 519.9 1,319.74 96,001.00 — 97,000.00 805.63 523.66 1,329.29 97,001.00 — 98,000.00 811.42 527.42 1,338.84 98,001.00 — 99,000.00 817.21 531.19 1,348.40 99,001.00 — 100,000.00 823.00 534.95 1,357.95 100,001.00 — 500,000.00 823.00 For the first $100,000.00. Plus $4.52 for each additional $1,000.00 or fraction thereof. Plan review fee will be 65% of the calculated building permit fee. 500,001.00 — 1,000,000.00 2,631.00 For the first $500,000.00. Plus $3.86 for each additional $1,000.00 or fraction thereof. Plan review fee will be 65% of the calculated building permit fee. 1,000,001.00 — And up 4,561.00 For the first $1,000,000.00. Plus $2.59 for each additional $1,000.00 or fraction thereof. Plan review fee will be 65% of the calculated building permit fee. FEES COLLECTED BY ENGINEERING There are two permit sources of revenue collected by the Engineering Division: the "Permit to Construct Public Improvements "; and, the "Excavation Permit." Permit to Construct Public Improvements In order to verify that all public works improvements meet the established City requirements and standards, review of the plans and inspection of the construction is performed by the Engineering Division. Upon submittal of the application, the applicant must pay $250 prior to any review being done. Once the review of the plans has been completed and prior to construction beginning, the applicant must pay the "plan check and inspection fee." The "plan check and inspection fee" is based on the estimated construction cost as follows: 14% for the first $25,000 of construction cost, plus 12% of the construction cost between $25,000 and $50,000, plus 10% of the construction costs over $50,000. For example, the fee for a project with the estimated cost of $123,000 would be calculated as follows: (0.14) ($25,000) + (0.12) ($25,000) + (0.10) ($73,000) = $13,800 Prior to May 8, 2013, the fee had been 7% for the first $25,000 of construction cost, plus 6% of the construction cost between $25,000 and $50,000, plus 5% of the construction costs over $50,000. Due to the relatively recent doubling of the fees, I don't feel that an increase in this formula is warranted at this time. However, the unit prices for the various construction items, such as, HMA Class 'h Inch, Cement Concrete Traffic Curb and Gutter, Cement Concrete Sidewalk, etc., have not been updated since 2012. By updating these unit prices, additional fees could be collected. Excavation Permit An excavation permit is required for any work that is done in the public right of way. The minimum cost of this permit is $160. For any work that results in a cut (patch) into a public street, a restoration fee is included. The following items are required to calculate the fee: area of the cut (patch); pavement condition index; and, amount of time since the roadway has been resurfaced. Any cuts into roadways that have been resurfaced for less than 5 years will result in a fee of 150% of the restoration fee, except in the case of an emergency, which will cost 100% of the restoration fee. The restoration fee is calculated as follows: $4.05 per square foot of trench area, including an additional three -foot zone of influence on each side of the trench, multiplied by the pavement condition index. For example, a 6 foot wide cut across a 50 foot roadway, with a pavement condition index of 65 would result in a pavement restoration fee of: ((50) (6 +3 +3) ($4.05)) (0.65) = $1,579.50 The total excavation permit fee would be $1,579.50 + $160 = $1,739.50 Prior to 2014, the Excavation Permit (named Street Break at the time) fee was usually around $50. Due to the relatively recent, significant fee increase, I don't feel that an increase is warranted at this time. ANATOMY OF A STANDARD INFRACTION PENALTY 1. Anatomy of a Standard $136 Penalty (with all assessments): s BASE PENAL $48 JIS Assessment $23 RCW 2.68.040(2) ;hall not be waived or This amount is subtracted suspended. from the base penalty listed in IRLJ 6=2(d) prier to calculating the statutory division of the base penalty between the local jurisdiction and the state PSEA account. Remainder of the Base $25 RCWs 3.46.120, Penalty subject to division 3.50.100, and between local and state PSEA 35.20.220 account The base penalty is divided 68% to the local jurisdiction and 32% to the State PSEA account pursuant to RCWs 3.46.120, 3.50.100, and 35.20.220. PSEA I $34 RCW 3.62.090(1 ) ' Shall not be waived or This assessment for Public suspended by the court. Safety and Education is equal to 70% of the base penalty. (Subject to the roundin rule PSEA 11 $17 RCW 3.62,090 (2) Shall not be suspended • This assessment for Public or waived by the court. Safety and Education is equal to 50% of the PSEA 1. Legislative Assessment 0 RCW 4& 61110(8)(a) The court may not reduce; # Establishes a $20 penalty to waive, or suspend the be assessed in addition to additional penalty unless the court finds the offender to be the other base penalty and indigent. if a court authorized all other assessments. community restitution program for offenders is available in the jurisdiction, the court shall allow offenders to offset all or a part of the penalty due under this subsection (8) by participation in the court authorized community restitution Trauma Care Account $$ RCW 46.6,110(7)(a) ro ram. Under no circumstances + Established a $5 fee in shall this fee be reduced addition to the base penalty or waived. and all other assessments. ANATOMY OF A STANDARD INFRACTION PENALTY July 2015.doc Page 1 of 2 June 11. Distribution of a Standard $136 penalty (with all assessments) Description Initial Local PSEA JIS Trauma Auto Brain Basis Gov't Acct Acct Care Theft Injury TAcct Acct Acct BASE PENALTY 48.00 JIS Assessment 23.00 2100 Remainder of Base Penalty 25.00 17.00 The base penalty is divided 68% to the local jurisdiction and 32% to the State PSEA account pursuant to RCWs 3.46.120, 3.50.110, and 35.20,220. PSEA Assessment 1 34.00 2312 10.88 Divided between the local jurisdiction and the State PSEA account according to the division established under RCWs 3.46120, 3.50.100, and 35.20.220. 6810 local and 32% state PSA account. PSEA Assessment 11 17.00 17.00 Deposited in the State PSEA Account Legislative Assessment 20.00 -- 46,63.110(8)(b) requires that $8.50 8.50 8.50 of the $20 shall be deposited in the State PSEA Account. The remaining $11.50 is divided 11.50 7.82 3.68 between the local jurisdiction and the State PSEA account under RCWs 3.46.120, 3.50.100, and 3520.220. Trauma Care Account 5.00 5.00 Auto Theft Care Account 10.00 10.00 Traumatic Brain j9junLAccount 2.00 2.00 Total 1-36.00 -47—.91, 1 4_8.06 23.00 _5.00 L10.00 J 2.00 ANATOMY OF A STANDARD INFRACTION PENALTY July 2016.doc Page 2 of 2 June DATE: May 23, 2016 TO FROM: r1i I 401 North Front *'/ f" •f•f Fax f" 576-6 356 r MEMORANDUM Cindy Epperson, Director of Finance and Budget Bob Stewart, Fire Chief Fire Inspection Program History and Current State From a fire protection standpoint, the allocation of resources toward proactive prevention activities, and more specifically fire inspections, plays a significant role in reducing or eliminating manual fire suppression (firefighting). This is true not only in preventing the loss of life and property, but in the case of a fire in a commercial or industrial property, even short term loss of commerce and the associated jobs has the potential to be far - reaching. In addition to commercial and industrial properties, inspection programs include multi - family (3 or more) occupancies, health care facilities, nursing and retirement homes, and other occupancies. The disruption and displacement caused by a fire in these types of occupancies presents a major challenge. The Washington Surveying and Rating Bureau (WSRB) rates municipalities on a number of criteria related to fire protection capabilities. The evaluations are typically done on a ten to fifteen year cycle, or upon request if significant improvements have been made. This agency uses a 1 -10 rating scale, where a Class 1 has a strong protection capability, and a Class 10 is literally void of protection capability. The rating is then used by the insurance industry to establish insurance rates for commercial and industrial properties. In 2012, WSRB evaluated the City of Yakima, and assigned a Class 4 rating, with one of the key areas of deficiency being the lack of a robust Fire & Life Safety Inspection program. In 2012, Council — in an effort to help balance the budget, eliminated the Fire & Life Safety Inspection program. The program was subsequently reinstated in 2013, moved from the Codes Division at City Hall to the Fire Department, and restructured. One inspector was hired in April 2013, and a second inspector was hired in August 2013. The program expanded again when the Fire Services Agreement with Union Gap was implemented in January 2015, and included funding for 50% of a FTE inspector. Accordingly, one additional inspector was hired in February 0 r Page 1 of 3 2015, and those 3 inspectors conduct a combined total of approximately 4,500 annual inspections in both cities. With the commitment by council to reinstate and restructure the inspection program, the goal of attaining a Class 3 rating by the WSRB is well within reach. To achieve this goal, prior to being reevaluated /re- rated, the WSRB requires a period of operational time (2 +/- years) in order assemble data that will validate the inspection program's performance. With a budget shortfall identified early in 2016, one of the inspector positions was eliminated, and is not expected to be reinstated in future budgetary cycles. This reduction has a direct and adverse correlation to the WSRB re- rating of Yakima in 2017, and our anticipated improvement to a Class 3 rating. Prior to reinstatement in 2013, several options were considered to help offset operational costs for the inspection program, and those same options are equally as viable today. Although additional options likely exist, identified below appear to be the most practical: • Funded through the general government budget (current funding mechanism) • Funded through a combination of the general government budget and a flat rate user fee. As an example, a flat $25 inspection fee linked to the business license would generate approximately $100,000 annually from the 4000 + /- occupancies. • Pros — Simplicity, Consistency • Cons — Inequality between small occupancies and large, complex occupancies • Funded through user fees according to square footage (time), and hazard category. As an example, using a sliding scale model, inspection fees are based upon incremental square footage thresholds as set by the City. As a sub - option, an additional hazard fee can be assessed based upon occupancy use. • Pros — More equitability between small and large occupancies • Cons — Complexity, potential push -back from business as a result of cost • Funded through user fees according to valuation. In much the same manner as the square footage option, the inspection fee would be based upon the assessed valuation. With this option, a sliding scale model associates a fee based upon incremental assessed valuation thresholds. • Pros — More equitability between small -scale business and large commercial /industrial properties • Cons — Complexity, potential push -back from business as a result of cost It is a common practice for entities to assess fire inspection fees. Listed below are just a few around the region that assess based upon square footage: • Yakima County • Kittitas County • Redmond • Richland • Spokane As stated above, assessing a fee for annual inspections is a means to help offset some of the costs associated with the inspection program, and subsequently supplant some incident mitigation Page 2 of 3 efforts with prevention efforts. The goal is to fill the 3rd inspector position, which will help to prevent fires, and ultimately achieve the goal of a Class 3 rating. The ancillary benefit of the enhanced rating is a reduction in insurance premiums for the community. Page 3 of 3 Memorandum April 22, 2016 To: Jeff Cutter, Interim City Manager Cindy Epperson, Finance Director From: Scott Schafer, Director of Public Works Ken Wilkinson, Parks and Recreation Manager Subject: Parks and Recreation Fees As requested, the Parks and Recreation Division staff have spent time discussing our current fees for all parks and recreation programs and facility rentals. General parks and recreation fees were increased in 2013. A formula is used to determine fees for programs and that formula explanation is attached along with the schedule of fees. After careful consideration and deliberation, we do not propose an increase in fees at this time. In our world, increasing fees most often results in decreased revenue and decreased participation in programs, which is the complete opposite of our goals. Our hope is that the largest amount of the people in our community can participate in the most programs in order to increase there fitness, recreation opportunities and add to their quality of life. In most cases, discretionary funds for family and personal recreation are limited and an increase in fees results in less participation. One of the ways that we have used to increased revenue has been to mail our Recreation Program Guides to all residents within the city limits. This increase in exposure of our programs has increased revenue due to increase awareness. The other way revenues from programs has increased is that now almost all of our programs and facility rentals are available to people online without the $3.00 convenience fee added to the total. In the first three months of 2016, revenue that has been received through the website has more than doubled from the first three months of 2015. At this time we do not recommend a fee increase. Summary of ;Activity GL Yakima Parks and Recreation 1/1/2015 - 3/31/2015 GL Code Description Total Paid 131 8954720 Swim Instruction $6,946.87 131 8954741 youth athletics $1,977.00 131 8954742 adult athletics $175.00 131.8954710 Beyond the Bell $922.00 131.8954736 Park Reservation $3,365.55 131.8956214 Pool Rentals $2,674.88 Total Youth Golf $16,061.25 Summary of Activity GL Yakima Parks and Recreation 1/1/2016 - 3/31/2016 GL Code I Description I i Total Pamd 131 8954720 Swim Instruction $8,092.00 131 8954741 youth athletics $4,414.00 131 8954742 adult athletics $3,934.00 131.8954710 Beyond the Bell $7,045.98 131.8954736 Park Reservation $3,391.50 131.8956214 Pool Rentals $5,444.45 131 8954705 Youth Golf $428.00 131 8954706 Adult Golf $480.00 1318954713 Aquatics $238.75 131 8954717 Swim Passes $3,913.50 131 8954743 Adult Softball $1,396.00 Total $38,778.18 Pang 1 of 1 4/18/2016 12:00:00 AM 2016 FEE SCHEDULE Yakima Parks and Recreation Division Effective January 1, 2016 Program costs, service fees and rental charges are based on comparison with other like organizations and kept low to allow as many people as possible to be able to afford the programs, facilities and services offered. PROGRAM FEE FORMULA A formula has been established for determining the fees for services and programs. The formula is: Staff wages & benefits [S] + total program hours [PH] + facility costs [FC] + special equipment, materials, transportation, etc. [SP] + administrative costs (15 %) [AC] / minimum number of participants [P] = fee per participant S +PH +FC +SP +AC /P =Fee Staff wages may be calculated by the hour or by the unit, such as per game, per match, etc. CONTRACTED SERVICES Organizations may contract with the City of Yakima Parks and Recreation Division for services such as facility reservations and scheduling, maintenance, supplies, administration, etc. The contracted organization pays for these services. TAXES Sales or other taxes will be charged where appropriate. In some cases, taxes are included in the fee. PROGRAM DISCOUNT FOR RESIDENTS As a benefit to the City of Yakima residents who participate in Parks and Recreation Programs, a discount of approximately 20% is provided. Resident discounts may apply to special interest classes, golf lessons, swim lessons, youth sports and other programs as determined. ADDITIONAL ADULT SPORTS FEE FOR NON RESIDENTS For the following Adult Parks and Recreation Sports Programs, all non residents participating in sports leagues will be charged an additional registration fee of $8.00. Additional fees apply to the following areas: volleyball, basketball, slow pitch softball and soccer. PARK RESERVATIONS Citizens are welcome to use City park facilities on a drop in basis without charge. Individuals or organizations can make a specific date and time reservation for park facilities. [eg. Franklin Park picnic shelter] An application may be completed online after January 1, 2016 or at the Parks and Recreation Office located at 2301 Fruitvale Blvd, or by mail. A non - refundable application fee of $8.00 must accompany each facility use application when submitted. PICNIC SHELTER RENAL FEES Reservations are accepted up to 11 months in advance. Reservations are accepted for 1/2 days (9:OOam – 2:OOpm or 2:30pm – Dusk) or fall days (9:OOam – Dusk). Picnic Shelters are available year round. Hours for Picnic Shelter Rentals: Mondav - Sunday 9:OOam – Dusk Picnic Shelter Fee Type Resident Non - Resident Half Day Rental $58 /per half day $68 /per half day (9:OOam- 2:OOpm or 2:30pm- $86.00 FO—ver - 300 participants Dusk) 300 participants $195.00 All Day Rental $83 /per all day $98 /per all day (9:OOam -Dusk) Cancellation/Refund Policy: Picnic shelter cancellations must be made at least 14 days in advance of the reservation date to be eligible for a refund. The amount refunded will be 50% of the reservation fee. Requests made less than 14 days before the rental date will result in the loss of the entire reservation fee. Requests must be made in writing, and/or in person by the contracted renter at the parks and recreation office. Inflatables: Inflatables are allowed in our parks. If a group wishes to have an inflatable as part of their park reservation they are required to complete a liability waiver and have a certificate of insurance. An additional $50 fee is also required. Inclement Weather Policy: Sorry, no refunds will be made due to inclement weather. SPECIAL EVENT FEE Citizens or groups wishing to schedule a community or special event in one of the City of Yakima Parks will be required to pay a Special Event Fee to cover additional maintenance costs. In addition, groups may be required to pay for additional refuse service and chemical toilets on site. Fees will be based on anticipated attendance. Examples of community or special events could include, but are not limited to community meetings, political events, weddings, reunions, public concerts, and other similar events. Special Event Fees 1 – 50 participants no special event fee 51 –100 participants $57.50 101 – 200 participants $86.00 FO—ver - 300 participants $161.00 300 participants $195.00 The Special Event Fee will be collected before reservations are confirmed. Applicants will be responsible for the condition of the park after the event. Clean up and damage fees will be charged to the applicants as determined by the Parks and Recreation Manager. The Parks and Recreation Manager will have the discretion to limit usage in the Parks based on capacity, parking, neighborhood impact and availability. SPECIAL EVENT DEPOSIT /SITE SUPERVISOR Groups of 300 or more people are required to pay a $300 refundable deposit. Your deposit will not be refunded if the park is not left neat, clean, litter free and without any damage. Also a Yakima Parks and Recreation site supervisor will be present for the duration of the rental. The cost of staff supervision is $25 /per hour and will be added to the overall rental fee. SPECIAL EVENT INSURANCE REQUIREMENT Groups of 300 or more are required to have liability insurance. Yakima Parks and Recreation must be name as additional insured in any and all policies in the amount of $2,000,000. CONCESSIONAIRE PERMIT FEE Citizens or groups wishing to sell concessions in the Parks will be charged a yearly fee of $215. The Parks and Recreation Manager will have the authority to allow vending in certain parks according to the Parks and Recreation Division policies and procedures. The Parks and Recreation Manager will have the authority to waive the yearly fee in cases of contracted services or a one time special event. A list of parks that are available for concessionaires will be provided to the applicant. REFUND POLICY If the Parks and Recreation Division needs to cancel an activity, staff will notify registered participants and provide a 100% refund. If a participant needs a program refund, a receipt must be presented to staff three (3) days prior to the activity registration deadline, unless otherwise stated. If the registration was paid by check or cash, a refund will be given minus a $5 processing fee that will be processed by the City of Yakima Finance Division and a check will be mailed within 30 days. If the fee was paid by credit card, the refund will be credited to the original cardholder minus a $5 processing fee. Fees of less than $5 will not be refunded. There are no refunds on team sports. 2016 Proposed FEE SCHEDULE Yakima Parks and Recreation Division Effective January 1, 2016 SERVICE UNIT 421— PARK MAINTENANCE Description 2016 Fee [plus tax] Soccer Fields — rate per hour Contracted negotiated Soccer League Adult League — minimum 2 hours — per hour $10 Youth League — minimum 2 hours — per hour $8 Tournaments — per day 50% non refundable deposit] Chesterley - per field — per day $75 Field Line Painting — per field — new fee $65 Line Painting — per field — new fee $85 -Special Baseball/Softball Fields Tournaments [50% non refundable deposit required at the time of registration] Gateway Sports Complex negotiated Kiwanis Park negotiated Elks Park — orange, black, blue, red fields — per field, per day $30 Elks Park — larger green field — - per day - new fee $80 Gardner Park — per field — per day $80 Gardner Park — per hour, per field, 2 hour min. $10 Services — Field Preparation -Special Mowing — per hour $100 Field Prep — per hour $35 Sports Field Lights — per hour $30 Tennis Court Reservations — per court, per hour $10 SERVICE UNIT 422 — COMMUNITY RECREATION All programmed recreation activities, except summer playgrounds, youth drop in programs and additional programs determined by City Council will follow the "Program Fee Formula" as identified. Description 2016 Fee [plus tax] Special Services to Organizations contract Beyond the Bell - After School Program — per child, per day $3.00 SERVICE UNIT 423 — FISHER PARK GOLF COURSE Description 2016 Fee [includes tax] Greens Fees Youth (age 4 to 8) — 9 holes $4.75 Juniors (age 9 -18) & Seniors (age 62 —over) 9 holes $8.25 Juniors & Seniors, 2" 9 holes $4.50 Adult (over 18 and under 62) — 9 holes $9.25 Adults — 2 nd 9 holes $5.50 Family (2 Adults, 2 Juniors) — 9 holes $26 Family (2 Adults, 1 Junior) $21 Family (1 Adult, 2 Juniors) $20 Trail Pass $2 Passes 20 round - Adult $148 20 Round - Junior & Senior $130 Adult - season pass $620 Junior & Senior - season pass $570 Couples — Adult — season pass $1010 Couples — Seniors — season pass $915 Specials Ladies Day, Men's Day, etc. - — 9 holes $7 Moonlight Golf $25 Senior Citizen Day- Monday $5 Family Day — Sunday's after 3 pm $5 Rentals Golf Outing $576 Golf Cart Rental $12 Club rental $5.75 Pull Cart rental $3.25 Club /Pull Cart Combo $7 Lessons Adult formula Youth formula The First Tee of Yakima No Charge SERVICE UNIT 424 —AQUATICS Honored Citizen is defined as a person that is 62 years old or older or is a Yakima Transit Honored Citizen State of Washington Handicapped Parking Placard (wallet card) holder, SSI Disabled or active military with an ID. Ages 3 and under may swim for free when accompanied by a paying adult. Description 2016 Fee includes tax] Swim Lessons Tiny Tots — Level 6 $33/$40 Semi — Private — (8 sessions) $88/$105 Community Water Safety $33/$40 Competitive Stroke Class $33/$40 Lifeguard Training $110/$120 Water Safety Instructor - (not being taught at this time) $113/$139 Water Exercise Classes Hydro -Fit, A uacise, etc. 10 Visit punch card $35/$44 Drop — in $6/$6.50 Zumba — Month $40 Zumba — Drop In $6 Other Services & Classes Program Fee Formula formula General Recreation Swimming Youth (age 4 —17) $2.00 Adult (age 18 — 62) $3.75 Honored Citizen $2.25 Family (up to four kids & 2 adults) $13.00 Lap Swimming/Water Walking Adult $3.75 Honored Citizen $2.25 Passes Youth — 3 Month $52 Adult — 3 Month $98 Honored Citizen — 3 Month $59 Family — 3 Month $212 Youth — Coupon book —10 swims $16 Adult —Coupon book —10 swims $33 Honored Citizen — Coupon book —10 swims $21 SERVICE UNIT 424 — AQUATICS Description 2016 [plus tax Pool Rentals Lions Pool $280 1 — 50 participants — price per hour $100 Each additional 50 participants — per hour $30 Classroom — weekends /evenings, 2 hour min. $100 Franklin Pool $75 1 — 50 participants — per hour $138 Each additional 50 participants — per hour $32.50 Non Profit — Ballroom: one section/per hour $80 Other Rentals formula For Profit Agencies 25% add Reserved Activity Space — fee per quarter $12 SERVICE UNIT 425 — HARMAN CENTER Description 2016 Fee [plus tax] Harman Center Rentals Ballroom — All three sections /per hour (2 hour minimum) $280 Ballroom — one section/per hour (2 hour minimum) $100 Ballroom cleaning & damage deposit $500 Classroom — weekends /evenings, 2 hour min. $100 Classroom — normal hours $75 Weekly & Monthly User negotiate Non Profit — Ballroom: All three sections /per hour $210 Non Profit — Ballroom: one section/per hour $80 Trips and Tours formula Classes - Miscellaneous formula Reserved Activity Space — fee per quarter $12 Tournaments formula SERVICE UNIT 426 — SPORTS - ADULT Description 2016 Fee includes tax] Program Fee Formula formula SERVICE UNIT 426 — YOUTH SPORTS Description 2016 Fee includes tax] Program Fee Formula formula Memorandum To: Jeff Cutter, Interim City Manager & Cindy Epperson, Finance Director From: Joan Davenport, Planning Manager & Jeff Peters, Supervising Planner Date: 6/2/2016 Re: Planning Division Land Use Fee & Revenue Opportunities Traditionally, city planning divisions throughout the state have both very limited resources and limited ability to increase city revenues. In most cases, these resources are limited to land use fee increases (lessening the subsidy of development), the addition of land use fees (for new services or services & costs previously absorbed by the division), impact fees, and public grants. Part 1: Land Use Fees In examining the City Planning Division's existing fee schedule and roughly estimating the division's cost to process (staff time, average wage, printing, postage, advertising, and hearing examiner costs) the division's common applications, the City Planning Division has found the following: 1. The City Planning Division has streamlined the process for many of its minor applications over the last seven years. Fees charged for most of the minor land use applications (not involving a public hearing) recoup between 39% to 73% of the total costs for the division to process. 2. Previous city council policy established a goal of a 50% partnership for development costs /subsidy. The City of Yakima would need to raise three of its minor land use fees by an average of approximately 9.33% or $32.50 to meet the 50% goal, and institute a land use fee for Type (1) Reviews. 3. The fees charged for major land use applications (requiring a public hearing by the hearing examiner) recoup between 15 to 21 % of the total costs for the division to process the applications. Application fees for these land uses range from $420.00 to $700.00 with an average processing costs of $3,091.58. Hearing Examiner and staff costs for these applications constitute 75% of the total cost to process the applications with the average hearing examiner costs exceeding the average application fee by $670.00. 4. Major applications such as Preliminary and Final Long Plats which require a hearing before the Planning Commission or City Council in lieu of the Hearing Examiner recoup approximately 44 to 86% of the cost to process. Final Long Plats, which have the lower of the two fees, would need to have the application fee increased by 5.8% or $56.84 to reach a 50% recapture goal; Part 2: How Yakima's Fees Compare: To gauge how the City of Yakima Planning Division's land use application fees compare to other municipalities in the state, the division obtained the fee schedules for nine municipalities (seven Eastern Washington municipalities, and two mid -size western Washington cities), and averaged and compared seventeen major land use application types. The results identified the following: The fees charged for major land use applications by the City of Yakima (involving a public hearing) range from $270.00 to $700.00. In comparison to other cities these fees fall 41 % to 468% below the average. The average fees charged by the other cities surveyed range from $2,159.90 to $950.71. Other notable fee difference are the fees for Preliminary & Final Long Plats ($2,159.90/$950.71), and Rezones ($1,210.22). 2. The fees charged by the City of Yakima for minor land use applications (not involving a public hearing) range from $145.00 to $420.00. In comparison to other cities, these fees fall 31 % to 507% below the average. The average fees charged by the other cities surveyed range from $344.50 for Short Plat Exemptions to $2,156.50 for a Shoreline Conditional Use Permit. Other notable fee differences are the fees for Preliminary & Final Binding Site Plans ($1698.78/$951.00), Preliminary & Final Short Plats ($1,178.78/$805.00), and Shoreline Substantial Development Permit ($1,466.43). 3. There are a number of permits and or processes which other cities currently charge but the City of Yakima presently does not, such as: a. City of Yakima Type (1) Reviews or Permitted Use /Site Plan Review b. Comprehensive Plan Text Amendments (Average Fee $1,032.02) C. Zoning Text Amendments (Average Fee $1,459.38) d. Zoning Verification Letter (Average Fee $131.57) e. Pre - Application Meeting (Average Fee $341.57) f. Base EIS Review Fee (Average Fee $954.40) g. Shoreline Exemption (Average Fee $307.50) h. Time Extension for land use permits (Sample Fee $254.00) i. Unlisted Use Determination (Sample Fee $508.00) j. Planned Development Amendment (Sample Fee $950.00) k. Development Agreement Amendment (Sample Fee $2,200.00) I. Shoreline Conditional Use Permit (Sample Fee $950.00) m. Shoreline Variance (Sample Fee $800.00) n. Shoreline Exemption (Sample Fee $300.00) o. Site Plan Review (Sample Fee $1,110.00) p. Development Agreements (Sample Fee $1,600.00) q. Non - Conforming Use Determination (Sample Fee $275.00) r. Additional Meeting (Sample Fee $259.00) S. Resubmittal Fee (Sample Fee $63.00) t. Property Merger (Sample Fee $500.00) u. Floodplain Development Permit (Sample Fee $259.00) Part 3: Recommendations Regarding Planning Fees In 2015, revenue from Planning permit fees was approximately $60,000. While the revenue is modest, the current fee structure for permits and reviews by the Planning Division should be reviewed. The goal of 50% cost sharing between the City and private interests should also be a part of this review. The City of Yakima Planning Division concludes that: 1. An overall across the board increase of its fees is not warranted due to the vast difference in the amount of cost that is recaptured between the City's major and minor land use application types; 2. Reconsideration of the past Yakima City Council's policy to have a community development partnership recapture rate of 50% may help to increase fees, lessening the Planning Divisions burden on the general fund; 3. The fees for the division's major land use applications which require a public hearing before the City of Yakima's Hearing Examiner should be increased at a minimum to cover the estimated average of the examiner's costs based on the application type. An increase in these land use fees would lower the city's costs and increase the percent of recapture for these land use applications by approximately 25% or greater; 4. The City should add fees for all land use applications and processes that are required by state law to be current with Washington State law. These applications are: Comprehensive Plan Text Amendments, Zoning Text Amendments, Shoreline Exemptions, Shoreline Conditional Use Permits, Shoreline Variance Permits, and Floodplain Development Permits; 5. The City should consider adding development fees that are higher for Planned Developments, Amendments, and Development Agreements. These land use applications generally require a substantial amount of engineering and legal review which correspondingly have higher paid wages; 6. Adding low or modest fees for high frequency land use applications and processes (Type (1) Reviews /Site Plan Review, Zoning Verification Letters, Pre - Application Meetings, Additional Meeting Fee, Resubmittal Fee, and Time Extension for land use permits) would have several benefits, including: a. Recapturing a small amount of the total cost to the city to process the land use applications and processes which presently do not have a fee; b. Reducing the number of applications that are incomplete, or ones that are submitted only to determine the conditions of approval for a particular site; and C. Providing more time for staff to focus on larger planning issues; and 7. In the event that the City Council would like to reexamine the City's land use fees and percent of cost recovery, the Planning Division would recommend a more detailed and thorough fee study be conducted. Part 4: Other Revenue Sources Available to Support Planning Programs This memo focused on the revenue potential from Land Use Permit applications. As stated previously these fees cover only staffing costs and other defined expenses in the processing of individual applications for land use permits. Other programs available to the City to create revenue are related to specific improvements that are specified in the City's Comprehensive Plan & Capital Plans, such as street or sidewalk projects, parks, fire stations, utilities or other related projects. These programs include: 1) Impact fees RCW 82.02.050, Transportation Benefit Districts (TBD) — See memo from Legal, 3) Local Improvement Districts, 4) Late Comers Agreements, and 5) Mitigation measure from SEPA reviews. 0 City of Yakima 200 S. 3rd Street Police Department Yakima, Washington 98901 Dominic Rizzi Jr. Chief of Police Telephone (509) 575-6200 Fax (509) 575-6007 Memorandum To Cindy Epperson Director of Finance From: Jeannett Mora Police Services Manager Subject: Yakima Police Department Service Fees The following fees are currently imposed by the Yakima Police Department: Standardphotocopies letter or legal, per page .......................... .......................$0.15 each Traffic Accident Report, per report .......................... ......$5.00 each Verification Letter ............................................................................... $5.00 each Coban Video on DVD, (per DVD) and Digital Photos on CD-Rom, (per CD) ....... $8.00 each (Copying fee is based on 15 minutes recording time. Actual cost may be more depending upon copying time.) $5.00 per card Fingerprinting ........................................................ .................... ($2.00 for add'l) Notary Service.. ............... .............. ............................... .. $3.00 per page IMIUME New Permit (application fee $36.00 + fingerprinting $16.50) .......................$50.75 Renew (prior to expiration)... .... ......... ............... ...... ..........,.......$32.00 Renew (within 90 days of expiration) ........ ........... ........... ................ $42.00 Replacement............................................ ..................... __310.00 The following chart reflects fees that we have the ability to increase dictated by RCW's: Traffic Accident Report, per report .. ............................... ..........................$9.50 each Verification Letter ..................... ............................... .........................$10.00 each Fingerprinting....................... ............................... ..........................$5.00 per card (Add'l cards are $5.00 vs. previous $2.00 fee) Notary Service .................... ............................... .........................$10.00 per page Currently, the Yakima Police Department is looking at a third party vendor that the city can contract for Accident Reports online and make them available for purchase and quicker receipt. The following information was relayed by the third party vendor that I am currently working with: • Crashlogic is a no -cost solution for your agency, forever! • Your agency charges whatever fee you want for the convenience to your citizens and /or insurance companies to purchase their accident report through Buycrash.com • The agency fee is delivered to your agency monthly with a report which tracks each report sold on behalf of the agency • Appriss assesses an $8 convenience fee for every report sold through Buycrash.com. $1 of every report sold goes to WASPC For example, if we decide to charge $12.00 our revenue would be $4.00 per report. Graphed below is a comparison with what we currently charge and if we were to increase our fees. 10,000.00 9,000.00 8,000.00 7,000.00 6,000.00 5,000.00 4,000.00 3,000.00 2,000.00 1,000.00 0.00 Revenue Comparison with Current and Proposed Fees Traffic Accident Report Verification Letter Fingerprinting Notary Service ■ Current ■ Proposed Res ectfully, Jea 3nett Mora City of Yakima Detail of Fees and Charges by Operating Division Account No Account Description 2014 Actual 2015 Actual 2016 Budget Basis of Charge 1 895 4105 Sale Of Publications - Clerks $ 529.22 $ 691.42 $ 400.00 per page of copies Code Administration and Permits Wastewater Connection Chg 1 895 6201 Rent of Equipment Fees 141 895 4506 1 895 2101 Regulatory Business License 25,498.45 30,601.80 35,000.00 type of business 1 895 2102 Amusements 2,540.58 2,165.87 3,270.00 300.00 1 895 2103 Penalties On Business Lic 7,166.00 6,538.41 6,200.00 2,000.00 1 895 2204 Building Permits 616,573.61 573,525.62 600,000.00 rate per sq feet 1 895 2205 Fire Code Permits 20,351.00 21,103.00 28,000.00 1 895 2206 Mechanical Permits 44,078.01 45,698.14 45,000.00 1 895 2207 Plumbing Permits 66,686.61 69,111.27 67,500.00 1 895 2208 Sign Permits 13,110.52 13,582.14 14,000.00 1 895 6206 1 895 2214 Dog Licenses 17,019.00 21,701.26 24,000.00 rate per dog 1 895 2215 Penalty On Infraction 996.20 162.77 500.00 1 895 2218 Penalty on Dog Licenses 13,620.00 9,267.00 9,000.00 late fee per license 1 895 2219 Miscellaneous Permits 3,050.00 2,404.00 3,000.00 1 895 2224 Dangerous Dog Fee 600.00 1,000.00 rate per dog 1 895 4232 Selah- Inspection fee 3424 1,791.07 2,197.82 2,000.00 by contract 1 895 4344 Dog Impound Fine 6,425.00 5,250.00 6,000.00 1 895 4345 Abatement Charges /Appeals 1,877.03 38,843.41 5,000.00 Reimburse for City Clean -up 1 895 4505 Plan Checking Fees 346,499.71 304,200.24 323,000.00 1 895 4910 Codes Fees for SW Inspect 50,000.00 50,000.00 51,250.00 Stormwater budget Code Administration Fees 1,237,282.79 1,196,952.75 1,223,720.00 Economic Development 1 895 6227 Econ Dev Concessions Engineering 46,722.46 1 895 2220 Street Excavation Permit 1 895 4101 Sale Of Maps 1 895 4103 Sale Of Plans & Specs 1 895 4110 Eng. Oua Fees 1 895 4229 Street Excavation Inspect 1 895 4306 Wastewater Connection Chg 1 895 6201 Rent of Equipment Fees 141 895 4506 Transportation Capacity Fee 450,000.00 Engineering Fees 28,220.39 46,722.46 110,000.00 negotiated % of event revenue 8,716.92 43,899.18 47,000.00 rate per permit 221.76 240.24 500.00 rate per map sold 500.00 95,792.18 1,500.00 rate per contract plans sold 348,829.32 474,001.81 450,000.00 actual personnel cost 24,785.39 29,703.68 27,000.00 rate per permit 7,325.00 8,875.00 7,800.00 Admin fee 300.00 300.00 300.00 rental for r/w usage under bridge 2,000.00 2,750.00 2,000.00 Admin fee - $250 per application 392,678.39 559,769.91 536,100.00 120,000.00 Exhibit 1 Fines (excluding Parking) Per State Law 1 895 5301 Municipal Infraction Pena 1,084,144.72 1,141,964.92 1,200,000.00 1 895 5506 DUI Penalties - Criminal 95,792.18 96,795.40 102,000.00 1 895 5508 Muni Court- Criminal Traff 115,171.30 107,570.92 120,000.00 1 895 5609 Muni Court Non - Traffic Mi 108,270.47 74,031.92 100,000.00 1 895 5711 Dist Court Recoupments 137.24 592.30 110.00 1 895 5712 Municipal Court Recoupment 112,934.83 107,272.97 120,000.00 1 895 5913 Dog Citations 485.00 1 895 5915 Penalty- Street Excavation 238.67 Fines (excluding Parking) 1,516,935.74 1,528,467.10 1,642,110.00 Parking Fines and Charges 1 895 6206 Residential Parking Permits 188.00 158.00 200.00 residential parking permits sold qtrly 1 895 5403 Parking Infraction Penalties 61,187.83 61,243.35 65,000.00 per violation - Regular set by Council Parking 61,375.83 61,401.35 65,200.00 Handicap set by state law (now $450) Exhibit 1 City of Yakima Detail of Fees and Charges by Operating Division Account No Account Description 2014 Actual 2015 Actual 2016 Budget Basis of Charge Fire GIS Services 24,000.00 28,800.00 30,000.00 YAKCORP GIS support 1 895 3821 Fire Training Center 1,300.00 750.00 1,000.00 Burn room usage -$250 per event 1 895 3822 Fire Training Services 7,060.00 7,395.00 8,000.00 Interagency Reimb per contract (YSD) 1 895 4220 Fire Hazmat Services 4,523.79 20,242.35 9,000.00 Interagency Reimb per contract 1 895 4222 Fire Protection Svcs -Dist 10 19,216.43 15,283.41 17,000.00 Contract -Dist 10 Prop tax 1 895 4242 Union Gap Fire Protection 2,316.08 1,184,461.08 1,212,992.00 Contract -CPI adjustment 1 895 6220 Fire Fees / Reimb 34,416.30 1,228,131.84 1,247,992.00 Cell Site Lease -CPI adjustment Information & Technology 1 895 3815 Information Tech Services 118,216.37 116,257.03 114,600.00 Contract -UG , Selah, Ambulance Cos 1 895 3801 GIS Services 24,000.00 28,800.00 30,000.00 YAKCORP GIS support 1 895 4102 Sale Of Publications 500.00 1 895 4223 Electronics Maint Revenue 19,508.12 11,919.15 6,156.00 Contract -Radio Site Maintenance 1 895 4903 Interfund Its 90,000.00 90,000.00 90,000.00 911 GIS -ITS support 1 895 4904 Print Shop Revenues 73,538.62 58,299.52 85,000.00 per page charge - mainly internal cust. 1 895 4906 Electronics Maintenance 21,126.00 21,126.00 21,760.00 Interfund radio maint Chg per device 1 895 6220 Telecommunications Lease 12,933.00 13,450.00 Cell Site Lease -CPI adjustment IT Fees & Charges for Services 346,389.11 339,334.70 361,466.00 Parks & Recreation 131 895 4501 Client Fee Scale -Day Break 374.47 887.92 1,100.00 Per person per appointment 131 895 4502 Client Private Pay -Day Break 4,995.39 11,649.03 9,000.00 Per person per appointment 131 895 4703 Golf Fees -Adult 39,809.21 32,480.96 40,000.00 Per golf round played 131 895 4704 Golf Fees - Senior Citizens 10,293.42 6,228.84 10,000.00 Per golf round played 131 895 4705 Golf Fees -Youth 3,467.15 3,552.01 5,000.00 Per golf round played 131 895 4706 Golf Instruction -Adult 3,645.00 4,617.00 5,000.00 Per lesson 131 895 4707 Golf Resale 1,746.46 1,321.33 1,500.00 131 895 4708 Golf Tournaments 1,113.29 2,837.50 1,500.00 Pertournament 131 895 4709 Special Programs 23,924.57 28,254.59 25,000.00 131 895 4710 Beyond the Bell 51,064.00 57,537.50 50,000.00 per child per month 131 895 4711 Aquatic Resale -Lions 384.73 401.49 1,050.00 131 895 4712 Aquatic Resale- Franklin 1,191.80 444.30 1,000.00 131 895 4713 Aquatics -Lions 22,128.45 45,891.25 45,500.00 per person per swim 131 895 4714 Aquatics - Franklin 72,846.07 63,074.03 72,000.00 per person per swim 131 895 4715 Lap Swim -Lions 6,139.80 3,846.53 6,000.00 per person per swim 131 895 4716 Lap Swim - Franklin 52.69 151.11 315.00 per person per swim 131 895 4717 Swim Passes -Lions 52,119.73 50,604.32 52,000.00 Various time frames 131 895 4718 Swim Passes - Franklin 8,547.19 7,512.55 8,500.00 Various time frames 131 895 4719 Senior Center Special Eve 13,437.27 9,110.09 15,000.00 per event 131 895 4720 Lessons -Lions 32,105.60 34,395.35 32,000.00 Per lesson 131 895 4721 Lessons - Franklin 418.12 1,078.50 1,000.00 Per lesson 131 895 4722 Field Maintenance 19,869.00 19,260.50 24,000.00 Pertournament 131 895 4723 Field Maintenance 16,289.36 901.05 6,000.00 Pertournament 131 895 4731 Leisure Programs 1,800.00 3,768.22 5,200.00 per person per class 131 895 4733 Senior Center Misc. Class 37,600.35 36,074.46 32,000.00 per person per class 131 895 4734 Senior Center Nutrition 215.50 215.50 500.00 131 895 4736 Special Project Fee 51,056.01 45,507.00 50,000.00 131 895 4737 Sr. Center Subscriptions 15,194.65 11,381.00 12,500.00 per person 131 895 4739 Parks Gift Certificates 2,597.01 744.25 1,500.00 131 895 4741 Athletics 16,172.00 13,659.00 12,000.00 Pertournament 131 895 4742 Athletics 29,162.40 27,398.10 35,000.00 Pertournament 131 895 4743 Athletics (Slow Pitch) 112,838.00 97,440.00 116,000.00 Pertournament 131 895 6203 Golf Club /Cart Rental 5,961.22 5,924.14 5,700.00 Equipment rental 131 895 6212 Rentals 17,076.25 23,739.41 20,000.00 Per Event 131 895 6214 Rentals -Lions 29,780.97 12,596.28 29,000.00 Per Event 131 895 6215 Rentals- Franklin 2,331.72 2,784.84 4,000.00 Per Event 131 895 6216 Senior Center Rental 47,490.52 34,998.23 45,000.00 Per Event Parks Fees and Rentals 755,239.37 702,268.18 780,865.00 Account No Account Description Parks & Recreation (continued) 131 895 6226 Golf Concessions 131 895 6227 Concessions - Franklin 131 895 6228 Concessions - Kiwanis Park 1 895 4104 Parks Concessions 131 895 4732 Senior Center Trips Planning 1 895 3805 1 895 4503 Zoning & Subdivision Fees 1 895 2209 Right -Of -Way Use Permits 1 895 2217 Environmental Impact Perm 1 895 4104 Sale Of Publications Police- Contracts for Service 1 895 3804 Police- Fairgrounds 1 895 3805 YSD Resource Officers 1 895 3807 Alcohol, Tobacco & Firearm 1 895 3808 Violent Crimes Task Force 1 895 3811 Union Gap Jail Contract 1 895 3819 Selah Jail Services 1 895 3820 Personnel Services 1 895 3830 YPD OT Reimb by County 1 895 4116 Training Services 34196 1 895 4221 Other Police Service -Off duty Police -Fees for Direct Service (see Memo) 1 895 2216 Gun Permits 1 895 4106 Accident Reports - Police 1 895 4111 Fingerprints 1 895 4112 Miscellaneous Revenue 1 895 4113 Verification Letters 1 895 4114 Examinations Police- Reimburse /Reduce Jail Costs 1 895 4226 Probation -Home Detention 1 895 4227 Probation -Home Detention 1 895 4108 Vending Machine Rev - Jail 1 895 4231 Prisoner Medical Payments Total Police Charges for Services Purchasing 10,000.00 1 895 3803 Purchasing Services Streets & Traffic Engineering 141 895 3826 Traffic Engineering 141 895 4410 Personnel Services 141 895 4910 Street Sweeping Services 141 895 4912 Interfund Streets Revenue Exhibit 1 City of Yakima Detail of Fees and Charges by Operating Division 2014 Actual 2015 Actual 2016 Budget 5,896.73 5,205.24 25,418.12 22,623.61 81,032.26 72,786.89 112, 347.11 100, 615.74 6,000.00 sales 22,000.00 sales 75,000.00 sales 103,000.00 Basis of Charge 235,565.00 234,542.79 356,000.00 Depends on trips planned 35,505.00 50,900.00 6,891.50 7,950.00 114.00 12.00 50,000.00 See Memorandum 3,000.00 8,000.00 100.00 42,510.50 58,862.00 61,100.00 932,363.32 958,222.61 991,780.00 271,017.47 302,908.92 298,737.00 Contract with Yakima Co. 10,000.00 10,000.00 Contract with State Fair Park 678,309.00 653,631.67 605,000.00 Contract with Yakima School District 201,270.00 245,397.35 240,850.00 70,000.00 OT Reimb for Task Force 15,185.24 9,260.00 15,000.00 OT Reimb for Task Force 350.00 500.00 7,200.00 640.00 1,509.83 1,693.19 5,000.00 Emphasis Patrol OT Reimb 2,100.00 4,827.00 7,000.00 Interagency reimburse per class 27,502.61 39,395.52 55,000.00 OT Reimb 732,656.68 719,447.38 767,000.00 19,035.95 23,965.40 22,000.00 per permit 8,412.00 13,065.50 8,500.00 moving to 3rd Party 16,682.00 19,676.75 20,000.00 per card 2,015.33 1,793.15 2,000.00 5,355.00 7,279.80 8,000.00 per report 65.00 20.00 80.00 51,565.28 65,800.60 60,580.00 130,016.50 153,139.00 149,000.00 Court Order 3,600.00 1,200.00 Court Order 16,703.29 11,956.38 13,000.00 Concession revenue 1,421.57 4,279.25 1,000.00 Insurance Reimb 148,141.36 172,974.63 164, 200.00 932,363.32 958,222.61 991,780.00 271,017.47 302,908.92 298,737.00 Contract with Yakima Co. General Government Total Fees and Fines $ 6,168,140.54 $ 7,564,289.12 $ 8,019,320.00 500.00 1,270.00 600.00 350.00 Damage Reimbursement 200,000.00 200,000.00 200,000.00 Interfund - Stormwater program 44,797.35 40,000.00 Interfund- project work reimb 201,270.00 245,397.35 240,850.00 General Government Total Fees and Fines $ 6,168,140.54 $ 7,564,289.12 $ 8,019,320.00 FIR5 11 � ''I" � i 1 Ivii wwartiff-MTom. August 31, 2016 TO. Cliff Moore, City Manager FROM: Bronson Faul, Sr. Assistant City Attorney SUBJECT, Transportation Benefit District tun v R pl�mpli 11 WIN is--dtv-uvs ex WRICIV treasurer allu Ine reqr5ler t are the electors. August 31 2015 Page 2 m • MINI, w construction, 101KQ10.1w, MINIM Other Information mm��� M-91MM-MAIMMM MIN", 40 of thi chapter. All Fj January 18, 2 A-In BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No� For Mseung�cvf' Egbrugfy 7, W — - — -- — -- - ----------- - ---- -- 0 . . . . . . . . . . . . Per ROW 36.73 050. the Council meet hold a public hearing prior to determining 4 a TOD should be created. After the public hearing, the Council may create the district by ordinance, set another time to create the TBO or take no action, A draft ordinance Is attached for reference Resolution Ordinance X Other (specify) Contract Mail to Contract Temm Amount: Expiration Date: Insurance Required? No Funding Source: Various Local Funding Sources Phone: APPROVEDFOR SUBMI77AL: City Manager &I AM Distributed at they 3 Meeting 6,),;1-/k, f �zKr Administration i` Fire Suppression Fire Investigation' �!{� Fire Training 401 North Front Street, Yakima, WA 98901 (509) 575 -6060 Fire Prevention ' f� ` Y N - ' ,' u y , _ l , . FaX (509) 576 6356 Public Education ��REDEQZ.ap' www yakimafire.com MEMORANDUM DATE September 26, 2016 TO Honorable Mayor Coffey All City Council Members FROM Bob Stewart, Fire Chief RE Fire & Life Safety Inspections When a hostile fire occurs, life safety is always the top priority However, though a fire occurring in a retail or commercial occupancy may not initially pose a threat to life safety, it can still have a devastating trickle -down effect on the community in terms of lost jobs and lost revenues. Despite the proficiency of firefighters in performing suppression activities, damage to the community's commerce will already be occurring at the receipt of the 911 call Prevention efforts are the most effective way to keep the community safe from fires, and it is for this reason that codes, ordinances and a robust Fire & Life Safety Inspection program with annual inspections are so vitally important. From the mid- 1970's through 2012, annual fire inspections for the City of Yakima were a function of the Code Administration Division at city hall Over that period of time, the scope and effectiveness of the program wavered corresponding to funding availability On February 1, 2012, the program fell victim to budgetary constraints, the sole Fire Inspector was laid off, and the program ceased to function. Early in 2013, the city council allocated funding to reestablish the program, and in May of that year the program was placed under the administration of the Fire Department. The program was restructured, and fire inspections were resumed with one inspector Following a competitive testing process, a second inspector was hired in August 2013 Two inspectors proved to be an inadequate workforce to accomplish initial and compliance inspections on nearly 4000 occupancies within city limits of Yakima on an annual basis With this in mind, when the Fire Services Agreement with the City of Union Gap was implemented January 2015, the Cities of Union Gap and Yakima contributed equally to fund a third Fire Inspector Early in 2016, the program took a step backward when, due to budgetary constraints, a vacancy created through retirement was not filled "The Yakima Fire Department is dedicated to providing quality public safety services to our community " Page 1 of 2 Given the importance of the Fire Inspection program in helping to keep the community safe from fire loss, staff is examining revenue generating mechanisms to ensure its sustainability The most plausible solution is the implementation of a user fee schedule Agencies throughout the State of Washington, including Yakima County, are using a fee schedule to support this vital service. The fee schedule we are currently examining will be specific to the City of Yakima, in that it will factor in the occupancy type/hazard class and the square footage (more square footage equates to a greater time commitment by the inspector) Such a calculation would then be used to generate a prudent and applicable fee schedule that would generate revenue only to the extent of consistently supporting the program. Page 2 of 2