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Home My WebLink About06/10/2025 03.A. 2026 Budget options and recommendations r:- `y ^� ljlt ii! s . BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. 3.A. For Meeting of: June 10, 2025 ITEM TITLE: 2026 Budget options and recommendations SUBMITTED BY: Vicki Baker, City Manager Craig Warner, Director of Finance & Budget SUMMARY EXPLANATION: Review of 2026 expenditure budget short falls and potential options to balance. ITEM BUDGETED: STRATEGIC PRIORITY 24-25: RECOMMENDATION: For review ATTACHMENTS: 2026 Budget Review.pdf 3 0 2025 - 2026 Biennial Adopted Budget 2025-2026 Biennial Budget Review .- � r- V . - ,t _ _ __,..r.,.. ,-- „, _ _ " _...... EC4Iire- air - Vicki Baker, City Manager IkiW-- i---":6 : ::) Craig Warner, Director of Finance and Budget \ k - t I ft", Atk;,,LA_ ,' _ .4R' 1 gab 111 c.Yakima N4mor...ri n. 4 *a A M i,. w w • w w yw i M s 1 - e ow oes Yakima a a n ce a $9, 000 , 000 deficit? 5 • City-wide Budget Survey • • Council Budget Advisory Committee C ornrnunit • Town Hall Meetings g Outreach • YVCOG pop-ups • Community Organization Presentations • Rotary, Kiwanis, Chamber, DAY 6 Budget Reductions Other Public Safety Parks Options 1 Eliminate Lobbying and Council Travel $ - $ - $ 120,000 2 Eliminate Funding for Fireworks $ - $ - $ 15,000 3 Reduce Windows Alive! Funding $ - $ - $ 10,000 4 Eliminate Flowers Downtown $ - $ - $ 44,300 5 Streamline Civil Service $ - $ - $ 60,000 6 Eliminate Trolley Maintenance $ - $ - $ 10,000 Guidance Provided by 7 Eliminate Funding for Adult Sports Programs $ _ $ 36,917 $ _ 8 Close Washington Fruit Community Center $ $ 319,591 $ 9 Eliminate Alley Maintenance $ - $ - $ 30,000 C it y-w d e Budget 10 Reduce Funding to YCDA - $ 50,000 11 Eliminate Crime Free Rental Housing $ 82,000 $ $ 12 Reduce Economic Development Staff $ - $ - $ 100,000 Survey 13 Reduce Funding for Community Recreation $ - $ 50,000 $ _ 14 Reduce Tahoma Cemetery Watering-Domestic $ $ 15,000 $ 15 Eliminate Legal Department Front Desk Staff $ 80,000 $ $ 16 Reduce Funding for YPD Traffic Unit $ 160,000 $ - $ - 17 Reduce Clean City Program $ $ $ 250,000 18 Eliminate Code Enforcement Officers $ 250,000 $ - $ - 19 Close Lions Pool $ $ 479,000 $ - 20 Eliminate Animal Control and Parking Enforcement $ 250,000 $ $ - 21 Eliminate Funding for Sidewalk Improvements $ - $ - $ 105,000 22 Reduce YPD and YFD Training Budgets $ 100,000 $ - $ - 23 Eliminate Graffiti Removal Program $ - $ - $ 72,500 (� 24 Reduce Parks Maintenance Funding $ - $ 500,000 $ Total: $9,000,308 25 Eliminate YPD Crime Analysis $ 481,000 $ - $ - 26 Reduce Street Maintenance Funding $ - $ - $ 500,000 27 Close Fire Station#92-Tieton Drive $ 1,700,000 $ - $ - 28 Reduce Funding for Snow and Ice Control $ 250,000 $ - $ - 29 Close Harman Senior Center $ - $ 382,000 $ - 30 Eliminate Youth Sports Programs $ - $ 61,000 $ - 31 Close Franklin Pool $ - $ 167,000 $ - 32 Eliminate YPD Property Crimes Unit $ 750,000 $ - $ - 33 Eliminate YPD Gang Unit $ 1,000,000 $ - $ - 34 Eliminate YPD Narcotics Unit $ 470,000 $ - $ - 35 Reduce Financial Services Department $ - $ - $ 50,000 $ 5,573,000 $ 2,010,508 $ 1,416,800 7 Feedback ..... Mix of Expense Reductions and Revenue Enhancements - Most Often All Revenues All Cuts Wide variety of things people cared about OD i • Youth and Parents - Parks and Pools • Seniors— Community Centers • Most supported Public Safety 8 Utility Tax Transportation Benefit District Transportation Benefit District Sales Tax Impact Fees Revenue Fire District Metropolitan Parks District c tions p Public Safety Sales Tax Additional 0.1 % Reviewed EMS Levy CPI Adjustment to City Charter Levy Options City-wide Fee Increases 9 Implementation of a Utility Tax for 2026 Budget Year Utility Tax Decision could be made Increase by city council orr Estimated Impact to GF: A 5% increase would equal $2.5 M annually Staff has concerns this could impact Economic Development 10 Transportation Benefit District Transportation Benefit District Transportation Benefit District Fee Sales Tax • Timeliness: Immediate • Timeliness: Immediate • Impact to GF: ZERO • Impact to GF: ZERO • Impact on residents: Increase • Impact on residents: . 1 from $20 to $40 • Implications for other city • Implications for other city funds: $2.7M funds: Additional $1 .7M Staff recommends reserving for future Transportation capital needs 11 I / 00011 IMPACT FEES FIRE DISTRICT METROPOLITAN PARKS DISTRICT These revenue streams take more long- term planning and evaluation. Staff does not believe these to be viable options at this time. 9 12 Public Safety Sales Tax additional0.1% The tax includes provisions that require analysis and vetting. Securing a supermajority for approval may pose some challenges. EMS Levy Levy does not support the Police Department and Parks. 1011 CPI adjustment to Will require a Charter Amendment City Charter Staff does not believe these to be viable options at this time 13 Voter-Approved Levy I n crease 1%annual increase going forward.never expires Onetime'bump' exceeds o exceeds 1%annual limit L` O III I EO A � = C SC r G H y Can never exceed statutory maximum levy rat..p.-r$1.000 assessed value IN Without lid lift(1%annual increase plus'add-ons-1 • With lid lift Staff believes this to be a viable option 11 14 Staff is currently comparing all possible City of Yakima rates with those of Kennewick, Richland, Pasco, and Wenatchee. Presentation of the rate review is expected User Fee later in the year. Adjustments The goal is to make programs pay for themselves. Staff believes this to be a viable option 12 15 Public Safety Levy Recommended Revenue Options Parks Levy Fee Increases • 0 . Expenses OptionA - Full Cuts Budget Reductions Full Cut Budget 1 Eliminate Lobbying and Council Travel $ 120,000 2 Eliminate Funding for Fireworks $ 15,000 3 Reduce Windows Alive!Funding $ 10,000 4 Eliminate Flowers Downtown $ 44,300 5 Streamline Civil Service $ 60,000 6 Eliminate Trolley Maintenance $ 10,000 7 Eliminate Funding for Adult Sports Programs $ 36,917 8 Close Washington Fruit Community Center $ 319,591 Guidance Provided by 9 Eliminate Alley Maintenance $ 50,000 10 Reduce Funding to YCDA $ 50,000 11 Eliminate Crime Free Rental Housing $ 82,000 12 Reduce Economic Development Staff $ 100,000 City-wide Budget 13 Reduce Funding for Community Recreation $ 50 000 14 Reduce Tahoma Cemetery Watering-Domestic $ 15,000 15 Eliminate Legal Department Front Desk Staff $ 80,000 Survey 16 Reduce Funding for YPD Traffic Unit $ 160,000 17 Reduce Clean City Program $ 250,000 18 Eliminate Code Enforcement Officers $ 250,000 19 Close Lions Pool $ 479,000 20 Eliminate Animal Control and Parking Enforcement $ 250,000 21 Eliminate Funding for Sidewalk Improvements $ 105,000 22 Reduce YPD and YFD Training Budgets $ 100,000 23 Eliminate Graffiti Removal Program $ 72,500 24 Reduce Parks Maintenance Funding $ 500,000 25 Eliminate YPD Crime Analysis $ 481,000 26 Reduce Street Maintenance Funding $ 500,000 27 Close Fire Station#92-Tieton Drive $ 1,700,000 28 Reduce Funding for Snow and Ice Control $ 250,000 29 Close Harman Senior Center $ 382,000 30 Eliminate Youth Sports Programs $ 61,000 31 Close Franklin Pool $ 167,000 32 Eliminate YPD Property Crimes Unit $ 750,000 33 Eliminate YPD Gang Unit $ 1,000,000 34 Eliminate YPD Narcotics Unit $ 470,000 35 Reduce Financial Services Department $ 50,000 $ 9,000,308 Total Public Safety $ 5,573,000 Total Parks $ 2,010,508 Total Other Essential Services $ 1,416,800 $ 9,000,308 15 18 Option B - Public Safety Levy Cuts with Public Safety Public Safety Public Safety Full Cut Levy Levy Eliminate Crime Free Rental Housing $ 82,000 $ - $ 82,000 Eliminate Legal Department Front Desk Staff $ 80,000 $ - $ 80,000 Reduce Funding for YPD Traffic Unit $ 160,000 $ (149,000) $ 11 ,000 Eliminate Code Enforcement Officers $ 250,000 $ (250,000) $ - Eliminate Animal Control and Parking Enforcement $ 250,000 $ (250,000) $ - Reduce YPD and YFD Training Budgets $ 100,000 $ (100,000) $ - Eliminate YPD Crime Analysis $ 481 ,000 $ (481 ,000) $ - Close Fire Station #92-Tieton Drive $ 1,700,000 $ (1 ,700,000) $ - Reduce Funding for Snow and Ice Control $ 250,000 $ (250,000) $ - Eliminate YPD Property Crimes Unit $ 750,000 $ (750,000) $ - Eliminate YPD Gang Unit $ 1,000,000 $ (1 ,000,000) $ - Eliminate YPD Narcotics Unit $ 470,000 $ (470,000) $ - Total $ 5,573,000 $ (5,400,000) $ 173,000 '1 19 Public Safety Levy $5,4 95,511.31 Assessed Value Rate Amount Increase $356,395.00 2.31 $823.27 Current Situation $356,395.00 1.86 $662.89 Yearly Difference $160.38 Monthly Difference $13.36 Daily Difference $0.44 17 20 Option C - Parks Levy qv Cuts Parks & Recreation (R s) wit(Red h h Parks Full Cut Parks Levy Levy Eliminate Funding for Adult Sports Programs $ 36,917 $ - $ 36,917 Fee/Program Adjustments Close Washington Fruit Community Center $ 319,591 $ (300,000) $ 19,591 Fee/Program Adjustments Reduce Funding for Community Recreation $ 50,000 $ (50,000) $ - Reduce Tahoma Cemetery Watering-Domestic $ 15,000 $ (15,000) $ - Close Lions Pool $ 479,000 $ (410,000) $ 69,000 Fee/Program Adjustments Reduce Parks Maintenance Funding $ 500,000 $ (500,000) $ - Close Harman Senior Center $ 382,000 $ (324,000) $ 58,000 Fee/Program Adjustments Eliminate Youth Sports Programs $ 61,000 $ (61,000) $ • - Close Franklin Pool $ 167,000 $ (140,000) $ 27,000 Fee/Program Adjustments Total $ 2,010,508 $ (1,800,000) $ 210,508 18 21 Parks Levy $1,869,706.62 Assessed Value Rate Amount Increase $356,395.00 2.01 $716.35 Current Situation $356,395.00 1.86 $662.89 Yearly Difference ( 53.466 Monthly Difference $4.45 Daily Difference $0.15 19 22 Option D - Other Service Reductions Other Essential Services Reductions Full Cut Eliminate Lobbying and Council Travel $ 120,000 Eliminate Funding for Fireworks $ 15,000 Reduce Windows Alive! Funding $ 10,000 Eliminate Flowers Downtown $ 44,300 Streamline Civil Service $ 60,000 Eliminate Trolley Maintenance $ 10,000 Eliminate Alley Maintenance $ 30,000 Reduce Funding to YCDA $ 50,000 Reduce Economic Development Staff $ 100,000 Reduce Clean City Program $ 250,000 Eliminate Funding for Sidewalk Improvements $ 105,000 Eliminate Graffiti Removal Program $ 72,500 Reduce Street Maintenance Funding $ 500,000 Reduce Financial Services Department $ 50,000 Total $ 1 ,416,800 Economic Development Related $ 479,300 20 23 City Services Levy $9,000,455.84 Assessed Value Rate Amount Increase $356,395.00 2.60 $926.63 Current Situation $356,395.00 1.56 $662.89 Yearly Difference ( 263.7 ) Monthly Difference $21.98 Daily Difference $0.72 21 24 • Public Safety Levy - $5.4 Million - Request to the Community • Parks Levy - $1 .8 Million - Request to the Staff Community Recommendations • Reduction of services totaling $1 .8 Million • Fee Increases to offset certain service reductions as allowed 25 < `y 1ljlt (A-..A1441 1 ii� 'loll .s AGENDA YAKIMA CITY COUNCIL June 10, 2025 City Hall - Council Chambers - 129 N 2nd Street, Yakima, WA City Council Study Session 4:00 p.m. Executive Session I 5:00 p.m. Study Session ---This meeting will be conducted in person, live streamed at www.yakimawa.gov/council/agendas-and-minutes/ and telecast live on YPAC, Spectrum Cable Channel 194. You may also participate via Zoom: https://cityofyakima.zoom.us/j/98137004181 or call in by dialing 1 (253) 215-8782 I Webinar ID: 981 3700 4181 I Passcode: 211807 Individuals who wish to provide public comment remotely may submit a Public Comment Request Form online at: www.yakimawa.gov/council/public-comment no later than two hours prior to the start of the meeting. If you wish to provide public comment in-person, fill out a "Request for Appearance" form and hand it to the City Clerk before you address City Council. Executive Session Executive Session to discuss potential litigation pursuant to RCW 42.30.110(1)(i) 1. Roll Call 2. Public Comment (allow 15 minutes) State law prohibits electioneering at City facilities. During Public Comment, speakers cannot campaign for or against candidates or support or oppose any ballot measure in any upcoming election. 3. Study Session Items A. 2026 Budget options and recommendations 4. Adjournment The next meeting is a City Council regular meeting on June 17, 2025 at 5:30 p.m. in the City Hall Council Chambers. Any invocation that may be offered before the official start of the Council meeting shall be the voluntary offering of a private citizen, to and for the benefit of the Council. The views or beliefs expressed by the invocation speaker have not been previously reviewed or approved by the Council, and the Council does not endorse the religious beliefs or views of this, or any other speaker. The City provides special accommodations, such as hearing devices, wheelchair space or language interpreters, for City meetings. Anyone needing special assistance please contact the City Clerk's office at (509) 575-6037 at least two business days prior to the meeting. A Council packet is available for review at the City Clerk's Office and on-line at www.yakimawa.gov/council/agendas-and-minutes/ 1 2