The URL can be used to link to this page

Home My WebLink About12/06/2016 06A 3rd Quarter 2016 Budget ReportBUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDASTATEMENT Item No. 6.A. For Meeting of: December 6, 2016 ITEM TITLE: 3rd Quarter 2016 Budget Report SUBMITTED BY: Cindy Epperson, Director of Finance & Budget SUMMARY EXPLANATION: As part of the 2013 Strategic Plan, the City Council implemented a Financial Trend Monitoring System (FTMS) in order to provide a simple "performance at a glance" of budgetary and revenue trends. The FTMS compares key financial and economic indicators as an "early warning system" regarding the financial and economic health of the City, and assigns "positive", "normal", "warning", and "negative" labels to revenues and expenditures. At the end of the third quarter 2016, we are seeing typical variances tied to timing --such as debt service contributions, progress on capital projects, and property tax collections. All expenditure categories received a "normal" ranking, as actual results are within 5% of expected levels at this point in time. Two General Government revenue categories are receiving a "warning" designation --sales and utility tax. These warnings are consistent with prior quarter reports. Fortunately, we added two "positive" revenue categories --State Shared Revenue and Other (although they are smaller dollar amounts). No categories received a "negative" designation. Management implemented cost containment measures through the end of the year to make up for some of the reduction in General Government revenue, but we are still estimating to use about $210,000 of reserves by the end of 2016. All of the funds were reviewed carefully during recent budget preparation, as we estimate year end results to arrive at a beginning fund balance that becomes part of the available resources for the 2017 budget. The trends in this report were the basis for preparing those estimates. It should be noted that the appropriation that went to Council in November is not included in these budget numbers, as it is 4th quarter activity. General Government (i.e. tax supported) funds including General, Parks & Recreation, and Street & Traffic Engineering are at 74.3% of budget. Citywide, expenditures are at 60.8% of budget, which is below 75% of the year primarily because of timing of capital projects and debt service payments. Overall, year-to-date results through the third quarter are as anticipated. ITEM BUDGETED: NA STRATEGIC PRIORITY: Public Trust and Accountability APPROVED FORcl*� SUBMITTAL: ~City Manager STAFF RECOMMENDATION: Accept report. BOARD/COMMITTEE RECOMMENDATION: ATTACHMENTS: Description Upload Date Type D 2016 3rd Qtr Budget Report 11130(2016 Presentation MEMORANDUM December 1, 2016 TO: The Honorable Mayor and Members of the City Council FROM: Cliff Moore, City Manager Cindy Epperson, Director of Finance & Budget SUBJECT: 2016 3rd Quarter Financial Trend Monitoring Report We are submitting for your review the City of Yakima's 2016 3rd Quarter actual compared to budgeted Revenue and Expenditure Report for all city funds. Overall, the City budget is performing as expected. This report is summarized by type of fund, and incorporates the Financial Monitoring System presentation. Information is reported by functional type, in the following order: ➢ Performance at a Glance - Financial Monitoring System ➢ City -Wide Overview ➢ General Government Revenue Analysis ➢ General Government Expenditure Analysis ➢ Other Funds Analysis ➢ Top 10 Capital Project List ➢ Exhibits - Fund detail that supports the summaries: • Exhibit I - Other Operating/Enterprise Funds • Exhibit II - Capital Improvement Funds • Exhibit III - Reserve and Other Funds • Exhibit IV - Bond Redemption Funds PERFORMANCE AT A GLANCE Exhibits Operating/Enterprise Funds (1) NORMAL 11 Capital Funds (1) NORMAL 12 Reserve, Trust & Agency Funds (1) NORMAL 13 Bond Redemption Funds (1) NORMAL 14 Legend: Revenues exceed budget >5%, Expenditures below budget >5°/ POSITIVE Revenues exceed budget <5%, Expenditures below budget <5°/ NORMAL Revenues below budget between 3-5% WARNINC Revenues below budget >5% (1) These funds are graded on a Net Revenue measurement. Yakima. 7979.1.FIN_Report_3rd_Qtr_2016.docx 1 of 14 STATUS PAGE General Fund Revenues NORMAL 2 - 5 Expenditures NORMAL 2/6-7 Other Funds NORMAL 8-9 Top 10 Capital Projects NORMAL 10 Exhibits Operating/Enterprise Funds (1) NORMAL 11 Capital Funds (1) NORMAL 12 Reserve, Trust & Agency Funds (1) NORMAL 13 Bond Redemption Funds (1) NORMAL 14 Legend: Revenues exceed budget >5%, Expenditures below budget >5°/ POSITIVE Revenues exceed budget <5%, Expenditures below budget <5°/ NORMAL Revenues below budget between 3-5% WARNINC Revenues below budget >5% (1) These funds are graded on a Net Revenue measurement. Yakima. 7979.1.FIN_Report_3rd_Qtr_2016.docx 1 of 14 CITY WIDE OVERVIEW REVENUE COMPARISON (Budget vs. Actual) General Parks and Recreation Street & Traffic Operations General Government Subtotal Operating/Enterprise Funds C a pita 1 Funds G.O. Bond Redemption Funds Utility Revenue Bond Redemption Fund Employee Benefit Reserves Operating Reserves Trust and Agency Funds Total General Parks and Recreation Street & Traffic Operations General Government Subtotal 2015 2016 Percent Amended Percent Actual Rec'd Budget Actual Rec'd $ 42,741,403 69.7% $ 62,702,510 $ 45,002,375 71.8% 3,379,133 61.9% 5,510,965 3,427,055 62.2% 3,039,754 64.4% 5,059,850 3,045,385 60.2% 49,160,290 68.7% 73,273,325 51,474,815 70.3% 50,894,407 68.3% 73,893,343 49,442,868 69.1% 72,583,371 51,774,670 71.3% 11,728,582 33.9% 46,644,571 19,137,691 41.0% 4,084,446 86.9% 4,815,142 4,148,808 86.2% 1,840,830 86.3% 2,131,180 1,617,501 75.9% 8,723,542 69.7% 13,120,340 9,601,303 73.2% 3,309,619 89.8% 4,894,000 3,538,507 72.3% 641,462 103.4% 626,777 670,776 107.0% $128,931,639 64.1% $ 218,088,706 $141,964,071 65.1% EXPENDITURE COMPARISON (Budget vs. Actual) Operating/Enterprise Funds C a pita 1 Funds G.O. Bond Redemption Funds Utility Revenue Bond Redemption Fund Employee Benefit Reserves Operating Reserves Trust and Agency Funds Total 2015 2016 Percent Amended Percent Actual Spent Budget Actual Spent $ 44,997,504 73.3% $ 62,702,391 $ 46,289,800 73.8% 4,022,506 74.0% 5,468,072 4,010,323 73.3% 3,581,238 70.5% 5,090,088 4,133,397 81.2% 52,601,248 73.1% 73,260,551 54,433,520 74.3% 50,894,407 68.3% 73,893,343 50,302,772 68.1% 9,915,623 22.1% 60,271,768 18,711,594 31.0% 2,746,846 58.3% 4,808,964 2,899,597 60.3% 572,447 26.8% 2,129,054 553,297 26.0% 9,300,972 72.3% 13,398,134 9,802,714 73.2% 3,565,544 96.0% 4,901,505 4,755,522 97.0% 489,225 79.2% 617,777 290,512 47.0% $130,086,312 60.4% $ 233,281,096 $141,749,528 60.8% Yakima. 7979.1.FIN_Report_3rd_Qtr_2016.docx 2 of 14 GENERAL GOVERNMENT REVENUE ANALYSIS General Sales Tax Crim. Justice Sales Tax Property Tax Utility & Franchise Taxes Charges for Services State Shared Revenue Other Intergovernmental Fines and Forfe iture s Other Ta xe s Transfers from other Func Licenses and Permits Other Re venue Total Revenue Beginning Fund Balance Total Resources GENERAL GOVERNMENT REVENUES Revenues through 9/30 2014 2015 2016 $11,229,097 2,343,670 9,710,476 11,908,494 5,093,601 2,192,093 897,685 1,194,294 1,171,275 864,931 679,289 620,517 $11,699,223 $ 2,365,585 9,496,379 11,675,917 6,199,667 2,084,551 1,087,778 1,214,430 1,154,908 896,783 673,675 611,394 12,008,076 2,453,084 9,818,898 11,770,269 6,556,441 2,389,007 1,179,833 1,273,499 1,108,572 960,051 728,716 1,228,369 2016 49,160,290 Amended Percent Budget Receipted $16,650,400 72.1% 3,361,500 73.0% 16,653,030 59.0% 16,278,300 72.3% 8,710,528 75.3% 3,001,800 79.6% 1,733,137 68.1% 1,707,110 74.6% 1,535,000 72.2% 1,450,000 66.2% 916,470 79.5% 1,276,050 96.3% 47,905,422 49,160,290 51,474,815 73,273,325 10,883,753 9,412,400 7,152,826 7,152,826 $ 58,789,175 $ 58,572,690 $ 58,627,641 $ 80,426,151 70.3% 72.9% Status WARNING NORMAL NORMAL WARNING NORMAL SITIVE ORMAL NORMAL NORMAL NORMAL ORMAL SITIVE NORMAL NORMAL Sales Tax — As reported in the Five -Year Financial Plan that went to Council on February 23, 2016, Sales Tax dropped below prior year actual for the last 3 months of 2015, attributed primarily to the drought putting a damper on spending in the region. Through the first quarter of 2016, sales tax was still running slightly below the prior year, although there has been a positive trend for April through October, so that through the ten months ending in October, we are 3.2% ahead of 2015 year to date for the same time period. The budget was originally set at $16,650,400, and the new estimate being used for the 2016 budget estimate is $16,400,000 — still below the original budget, which is why this category received a "warning" designation, but only by $250,400. The new estimate is 4.0% above 2015 actual. The 2015 actual was only 2.9% higher than the full year of 2014, after 3 consecutive years of 6.4% and higher growth rates in the years 2012-2014. Since our economy is closely tied to the agricultural sector, the wet winter eliminated the threat of extreme drought, and the recent sales tax receipts (i.e. April through October) would indicate an upturn in the economy. In looking at 1st 2nd and 3rd quarter data from the Employment Security Department, year -over - year job growth was 2.6%, 2.4%, and 2.7% respectively --in comparison, the 3rd and 4th quarters of 2015 experienced year -over -year job growth of only 1.1% in each quarter. This job growth preliminarily indicates an upturn in the underlying economy. Building Permit activity is staying strong, and this is a pre- cursor to construction sales tax. Looking at these underlying economic factors, and recent trends this revenue appears to be on target to meet the reduced budget estimate by year end. Property Tax — The first half of the Property Tax assessment is due to the Yakima County Treasurer by April 30, and the second half is due October 31. Therefore, the third quarter receipts are typically slightly more than 50% of the annual budget, because of accounts that are paid in full in April and payments in full Yakima. 7979.1.FIN_Report_3rd_Qtr_2016.docx 3 of 14 when property sells. The budget is set based on assumptions of new construction and collection rates—the 2016 actual levy was very close to the levy assumptions made, so this major revenue should meet or slightly exceed budget, depending on collection rate. Utility and Franchise Taxes — After falling off in 2015, this category is experiencing 0.8% growth over the prior year at the end of the 3rd quarter, and is below the 75% mark through this time frame. Contributing factors for this category includes weather conditions through the first nine months of the year, along with raw energy price reductions. Telephone taxes continue to decline, with the migration away from land lines and cell phone "talking minutes" to data which is not currently taxable. So this category overall is expected to end about $305,000 below budgeted amounts by year end, still in line with the estimate made in the most recent Five -Year Financial Plan. State Shared Revenue — The 2016 budget was built assuming we would receive a similar amount to the prior year in the criminal justice distributions. The "high -crime" distribution is recalculated every year following the State's fiscal year (i.e. the 3rd calendar quarter), based on the number of communities reaching certain thresholds. Because of the change in eligible recipients, Yakima's allocation increased by about $203,000 over the 2016 budget. Therefore, the variance is labeled a "positive" difference. Other Intergovernmental — The SAFER (i.e. firefighter hiring) grant is only billed annually at the end of the year, so the negative variance for this category is a timing difference, and considered normal. Other Taxes — This category consists primarily of Business Licenses and Gambling Taxes. Business licenses are due in January for the year, so that about 63% of this one category has been collected by June 30. It is below prior year actual, because the bills went out earlier in December, and some of this revenue was posted at the end of 2015. We anticipate the timing of the billing to continue at the earlier time, so that the positive variance is a timing difference, and considered normal. Gambling Taxes are performing as expected. Other Revenue — This category consists primarily of interest earnings, concession revenue and sale of assets. Most concessions activate in the summer, and the sale of two of the four Tiger Mart properties was completed by the end of the 3rd quarter for an amount that exceeds the budget by about $288,000, which is carrying forward into the year-end estimate and creating a positive variance. Other categories all contain timing exceptions, and are still expected to meet the budget. Overall, general government revenues are up by about $2,314,500 or 4.7% over 2015, and we anticipate year end to meet the revenue budget which maintains the "normal" ranking. If the one time revenue tied to the sale of a Tiger Mart property is removed, revenue is up approximately $1,626,000 or 3.3%. We are not experiencing a significant increase in total revenue estimates, so budget constraints are still necessary for 2016. Yakima. 7979.1.FIN_Report_3rd_Qtr_2016.docx 4 of 14 GENERAL GOVERNMENT REVENUES - By Month 2014 2015 2016 Jan $ 4,775,515 $ 4,516,085 $ 5,041,214 Feb 4,770,901 4,721,588 5,025,995 Mar 4,984,701 5,504,709 4,977,454 Apr 10,717,557 11,330,918 11,269,682 May 4,573,329 4,855,486 5,909,109 Jun 4,307,587 4,259,390 4,751,018 Jul 4,304,052 4,604,158 4,599,068 Aug 4,290,971 4,636,646 4,385,199 Sep 5,180,804 5,084,171 5,516,076 Oct 9,891,373 10,623,480 - Nov 4,395,161 4,782,114 - Dec 5,190,725 5,348,293 - $ 67,382,676 $ 70,267,038 $ 51,474,815 $12,500,000 $10,000,000 ■ 2014 $7,500,000 $5,000,000 ■ 2015 $2,500,000 $- ■ 2016 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec GENERAL GOVERNMENT REVENUES - Cumulative By Month 2014 Jan $ 4,775,515 Feb 9,546,416 Mar 14,531,117 Apr 25,248,674 May 29,822,003 Jun 34,129,590 Jul 38,433,642 Aug 42,724,613 Sep 47,905,417 Oct 57,796,790 Nov 62,191,951 Dec 67,382,676 2015 2016 $ 4,516,085 $ 5,041,214 9,237,673 10,067,209 14, 742, 382 15, 044, 663 26,073,300 26,314,345 30,928,786 32,223,454 35,188,176 36,974,472 39,792,334 41,573,540 44,428,980 45,958,739 49,513,151 51,474,815 60,136,631 - 64,918,745 - 70,267,038 - $80,000,000 $60,000,000 ■ 2014 $40,000,000 ■ 2015 $20,000,000 $- ■ 2016 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Yakima. 7979.1.FIN_Report_3rd_Qtr_2016.docx 5 of 14 GENERAL FUND EXPENDITURE ANALYSIS GENERAL GOVERNMENT EXPENDITURES Total General Government Fund Expenditures - 0.7% below 75% NORMAL Note: The "normal' designation is comparing to the budget after the budget reduction proposals are removed. Yakima. 79 79. 1. FIN_Report_3rd_Qtr_2016.docx 6 of 14 2016 Expenditures through 9/30 Amended Percent 2014 2015 2016 Budget Spent Status Police $19,523,913 $18,989,703 $19,946,908 $ 27,178,683 73.4% NORMAL Fire 7,576,121 8,857,453 8,741,525 12,310,596 71.0% NORMAL Transfers To Other Fundi 2,105,497 3,785,720 4,010,246 4,839,545 82.9% NORMAL Information Technology 2,104,796 2,390,358 2,370,547 3,113,902 76.1% NORMAL Code Administration 2,222,457 1,173,030 1,286,122 1,839,575 69.9% NORMAL Utility Services 985,377 1,097,048 1,190,999 1,691,074 70.4% NORMAL Legal 1,000,348 1,090,070 1,111,903 1,645,037 67.6% NORMAL Financial Services 1,106,231 1,148,056 1,105,535 1,529,538 72.3% NORMAL Municipal Court 916,650 931,765 990,099 1,427,119 69.4% NORMAL Police Pension 881,991 808,319 725,799 1,252,510 57.9% NORMAL Indigent Defense 451,907 682,856 714,467 935,500 76.4% NORMAL Economic Development 377,752 532,801 610,198 888,891 68.6% NORMAL Engineering 493,344 617,266 478,543 833,710 57.4% NORMAL Planning 324,060 383,190 448,370 652,548 68.7% NORMAL Records / City Clerk 483,074 426,350 508,492 652,086 78.0% NORMAL Human Resources 371,981 470,137 458,367 648,774 70.7% NORMAL Purchasing 415,532 450,317 459,972 630,092 73.0% NORMAL City Hall Facility 318,320 407,183 387,747 505,447 76.7% NORMAL City Manager 274,864 306,681 321,673 418,138 76.9% NORMAL City Council 238,990 231,963 209,617 285,340 73.5% NORMAL Neighborhood Partnershi - - - 206,735 n/a NORMAL Intergovernmental 221,940 147,989 156,556 189,551 82.6% NORMAL State Examiner 46,147 69,249 56,115 113,000 49.7% NORMAL Position Vacancy Savings - - - (1,085,000) 0.0% Total General Fund 42,441,292 44,997,504 46,289,800 62,702,391 73.8% NORMAL Parks & Re c re a tion Fund 3,646,245 4,022,506 4,010,323 5,468,072 73.3% NORMAL Street & Traffic Ops. 3,720,262 3,581,238 4,133,397 5,090,088 81.2% NORMAL Total General Government $49,807,799 $ 52,601,248 $ 54,433,520 $ 73,260,551 74.3% NORMAL Total General Government Fund Expenditures - 0.7% below 75% NORMAL Note: The "normal' designation is comparing to the budget after the budget reduction proposals are removed. Yakima. 79 79. 1. FIN_Report_3rd_Qtr_2016.docx 6 of 14 SIGNIFICANT EXPENDITURE VARIANCES Some operations in the General Government area have seasonal expenditures, which result in either positive or negative timing variances through the third quarter. For example, the entire contribution to the Risk Management fund is made in the first half of the year, because the corresponding purchased insurance premiums are due at the beginning of the year. Conversely, Parks and Recreation and Economic Development have lower program activity in the first half of the year, and pick up through the end of the year. However, since the total General Government budget is about 69% salaries many variances are tied to personnel — i.e. position vacancies. The following explains why some areas are receiving a Normal designation even though they may be over/under 75% in third quarter, yet comparable to prior years—i.e. payment timing variance ➢ Transfers to Other Funds —The annual principal payment on the 2014 street bond issue is due in the second quarter, so the full amount of $1.7 million has been transferred. Remaining items are transferred ratably throughout the year. ➢ Information Technology— Annual maintenance for various computer software systems, including the annual YAKCORPS assessment, is paid in the first half of the year. ➢ Legal — This savings is the result of the City Attorney being paid out of the City Manager's budget as interim City Manager. Also, the Community Court program that was going to start in early 2016 was postponed in the budget reduction activity, but started up in the 3rd quarter. ➢ Records/City Clerk — Prior year election costs of $214,000 were paid in the first quarter. ➢ City Hall Maintenance — Annual transfer to Risk Management Fund to pay for property insurance is made in the first half of the year - $139,000. ➢ City Manager — One-time recruiting expenses for the new City Manager, along with the employee survey are included in the year-to-date figures. ➢ City Council — Annual Association of Washington Cities (AWC) dues of $64,600 paid in the first quarter. ➢ Neighborhood Partnerships — This is a new program that was postponed in the April budget reduction report due to the slow down of sales and utility tax revenues. ➢ State Examiner — The annual audit does not get under way until the end of the 2nd quarter. ➢ Street and Traffic Operations —There was a snow event in the 1st quarter that required overtime and outside contractors to plow. An appropriation was approved by Council at their November 15 meeting. Position Vacancy Savings — Shown for fund total purposes only — no "actual" will be charged here. Yakima. 7979.1.FIN_Report_3rd_Qtr_2016.docx 7 of 14 OTHER FUNDS ANALYSIS Operating/Enterprise Funds Capital Funds Reserve, Trust & Agency Func Bond Redemption Funds Total Revenue Beginning Fund Balance Total Resources Operating/Enterprise Funds Capital Funds Reserve, Trust & Agency Func Bond Redemption Funds Total Expenditures OTHER FUNDS REVENUES Revenues through 9/30 2014 2015 2016 2016 Amended Budget $ 49,796,016 $ 49,442,868 $ 51,774,670 $ 72,583,371 33,407,195 11,728,582 19,137,691 46,644,571 11,774,201 12,674,623 13,810,586 18,641,117 4,419,624 5,925,276 5,766,309 6,946,322 99,397,036 79,771,349 90,489,256 144,815,381 51,022,832 56,161,007 61,807,854 61,807,854 $150,419,868 $135,932,356 $152,297,110 $ 206,623,235 OTHER FUNDS EXPENDITURES Expenditures through 9/30 2014 2015 2016 $ 47,434,154 31,746,499 12,650,483 1,958,712 $ 93,789,848 $ 50,894,407 9,915,623 13,355,741 3,319,293 $ 77,485,064 $ 50,302,772 18,711,594 14,848,748 3,452,894 $ 87,316,008 2016 Amended Budget $ 73,893,343 60,271,768 18,917,416 6,938,018 $160,020,545 Percent Rec'd Status 71.3% NORMAL 41.0% NORMAL 74.1% NORMAL 83.0% NORMAL 62.5% NORMAL 73.7% NORMAL Percent Rec'd Status 68.1% NORMAL 31.0% NORMAL 78.5% NORMAL 49.8% NORMAL 54.6% NORMAL Second quarter results are performing as expected. Most variances at this time of the year are related to timing, which is why they are getting a Normal status. Many Operating/Enterprise Funds have a seasonal component, and are not as active in the cold winter months (i.e. Refuse does not do yard waste, Water and Wastewater accelerate their programs during the good weather, Convention Center activity picks up in the spring, etc.) Conversely, some expenses are due in entirety in the first part of the year, such as the contributions to Risk Management and Irrigation ditch charges. The ONDS fund's budget has many large projects that did not have much activity in the first half. Similarly, the Environmental Fund budget includes a grant from the Department of Ecology to clean-up a Tiger Oil site. This work is just getting started. As is typical with grant -funded programs, the expenditures have to be made before we can be reimbursed. Capital Fund budgets include the full project, and are not expected to be 100% completed in the current year. The projects budgeted to be funded by limited tax general obligation bonds are currently "on hold" until we can identify available funds to repay the future debt service. Funding for N 1s1 Street is being Yakima. 7979.1.FIN_Report_3rd_Qtr_2016.docx 8 of 14 researched, and the related utility projects will not go forward until the Street project does. The large equipment purchases (such as Transit buses and Fire apparatus) have been ordered, but depending on the demand at the manufacturers, it could take up to a year to actually receive the equipment. A payment was made on the fire truck chassis, as that piece of equipment was completed. We received three buses ordered last year, and there are an additional 4 still on order. The Airport taxi way project got under way in the 2nd quarter, and is the one project on the top ten capital project list that is substantially complete. The City purchased the land from SOZO in 2015, and has paid for improvements as they occur throughout 2016— the balance remaining at this point in time is for the purchase of additional land. A listing of the top ten budgeted projects and their first quarter expenses follow. Reserve Funds are slightly ahead in revenue, primarily because a full year of "premiums" (i.e. transfers from all the applicable operating funds) to Risk Management are made in the 1st half of the year, which are then used for the purchased liability and property insurance premiums. Expenditures in Risk Management also includes the $1.8 million settlement to the ACLU for the Voting Rights Act lawsuit paid out in April. Available cash has been depleted after insurance premiums and the large settlement. This fund will access an interfund loan to cover ongoing program costs for the rest of the year. The 2017 budget tentatively includes a 12% increase in premiums to begin to replenish this reserve balance. The Employees' Health Benefit Fund has used about $158,000 of fund balance through the first three quarters of the year — even though effective cost containment measures have been in place. Because of this trend, coupled with a change in the underlying healthcare program that moves from reference -based hospital facility costing back into utilizing a discount network, we implemented a mid -year "premium" increase of about 5%, to cover claims for the rest of the year and keep an adequate reserve balance. We worked with all operating budgets to make sure the increase was appropriately costed in the year-end estimates. There were a few instances where the funds were not able to absorb this increase, and these were included in the mid -year appropriation ordinance that was approved by Council in November, 2016. The Wellness/Employee Assistance Program (EAP) fund is funded annually at the end of the year by a transfer from operating funds of the City's portion of insurance premiums budgeted for unfilled/vacant positions, so the full budget is "pre -funded" and there is no revenue in this fund until year-end. Revenue in the Firemen's Relief and Pension Fund are tied to the property tax collection calendar—the positive revenue variance is a timing issue (as described in the General Government section). Revenues in Bond Redemption Funds are generally deposited/transferred ratably throughout the year, but the bulk of debt service payments are made in the second and last quarters. For existing bond issues, these funds will always approximate budget. The only real chance for a variance from budget is if an actual debt service schedule for new debt differs from a budgeted estimate. Yakima. 7979. 1.FIN_Report_3rd_Qtr_2016. docx 9 of 14 TOP 10 CAPITAL PROJECTS These 10 projects represent about 58% of the total capital budgets: TBD N 1st St Revitalization - Stormwate SW 1,790,000 2391 N 1st St Revitalization - W 1,200,000 Water Main Replacement n/a Fire la dde r truck re place me nt F 1,150,000 (on order) - Charges for Services n/a Capital Reserves - Charges for Services n/a Capital Reserves 462,132 Fire Capital Reserves, FY 2015/16 State LOCAL lease program Yakima. 7979.1.FIN_ Report_3rd_Qtr_2016.docx 10 of 14 Total Actual 2016 2016 Expected Project Number/Description Dept Budget Expended Funding Source Completion 2376 Airport -Alpha Taxiway AP $10,120,000 $ 8,494,743 FAA Grant FY2016 Construction Passenger Facility Charges 2390 N 1st St Revitalization Phase II ST 6,855,000 166,449 Street Capital Reserves n/a State Grant, $6m LTGO Bond 2426 Road Improvements ST 5,000,000 - LTGO Bond n/a 2416 Beech St Interceptor Phase III WW 4,000,000 316,625 Charges for Services FY 2017/18 Capital Reserves 2406 SOZO Improvement & Land PK 3,350,000 2,428,812 LTGO Bond (carryover) FY2016 Purchase Phase II n/a Transit Bus Replacement (7) TR 3,094,000 1,415,900 Transit Sales Tax, Capital FY 2016/17 (3 received, 4 on order) Reserves, WSDOT Grant 2405 Yakima Central Plaza Phase II CBD 2,800,000 566,845 Community Donations, FY 2016/17 LTGO Bonds TBD N 1st St Revitalization - Stormwate SW 1,790,000 2391 N 1st St Revitalization - W 1,200,000 Water Main Replacement n/a Fire la dde r truck re place me nt F 1,150,000 (on order) - Charges for Services n/a Capital Reserves - Charges for Services n/a Capital Reserves 462,132 Fire Capital Reserves, FY 2015/16 State LOCAL lease program Yakima. 7979.1.FIN_ Report_3rd_Qtr_2016.docx 10 of 14 EXHIBITS OTHER OPERATING/ENTERPRISE FUNDS Actual Beg Bal Fund 01/01/16 Economic Development $ 76,421 Neighborhood Developm 897,054 Community Relations 657,412 Cemetery 37,538 Emergency Services 203,162 Public Safety Communicat (361,269) Police Grants 371,378 P.B.I.A. (Parking & Bus Im (4,561) Trolley 73,180 Front Street Bus Impr Area 4,679 Conv Center (Tourist Pror 528,261 Capitol Theatre 26,567 PFD - Convention Center 514,586 Tourism Promotion Area 80,822 PFD - Capitol Theatre 166,911 Airport Operating 46,313 Stormwater Operating 694,688 Transit Operating 1,954,958 Refuse 59,564 Wastewater Operating 4,309,330 Water Operating 3,130,380 Irrigation 897,427 Equipment Rental 4,057,425 Environmental 565,281 Public Works Admin. 484,256 Total Other Operating Funds $19,471,763 Amended Budget $ 183,000 3,338,886 666,600 262,950 1,326,026 3,499,468 416,000 205,340 91,433 3,735 1,683,800 414,700 828,750 687,000 624,800 1,134,929 2,151,000 8,701,402 6,595,262 22,102,484 8,816,000 1,803,540 4,722,942 1,180,000 1,143,324 $ 72,583,371 Exhibit I Revenues Actual Revenue % Rec'd Appropriations Amended Actual Budget Exp % Exp'd Ending Balance 12/31/16 $ 121,942 66.6% $ 198,071 $ 124,199 62.7% $ 74,164 399,203 12.0% 3,349,462 839,851 25.1% 456,406 338,426 50.8% 618,913 422,221 68.2% 573,617 179,080 68.1% 273,542 199,667 73.0% 16,951 784,409 59.2% 1,407,117 989,419 70.3% (1,848) 3,165,040 90.4% 3,563,096 2,650,166 74.4% 153,605 548,360 ###### 369,716 223,414 60.4% 696,324 103,933 50.6% 208,993 156,025 74.7% (56,653) 1,275 1.4% 164,855 80,014 48.5% (5,559) 3,751 ###### 10,279 7,557 73.5% 873 1,060,377 63.0% 1,694,510 1,219,292 72.0% 369,346 307,239 74.1% 420,497 332,586 79.1% 1,220 631,830 76.2% 727,720 542,934 74.6% 603,482 471,344 68.6% 687,000 402,349 58.6% 149,817 478,565 76.6% 630,883 471,056 74.7% 174,420 839,820 74.0% 1,128,985 854,721 75.7% 31,412 1,728,839 80.4% 2,638,104 1,549,532 58.7% 873,995 7,289,845 83.8% 8,368,765 5,921,916 70.8% 3,322,887 4,954,978 75.1% 6,452,485 4,721,318 73.2% 293,224 16,238,177 73.5% 22,540,390 15,226,325 67.6% 5,321,182 6,747,120 76.5% 9,373,857 7,135,234 76.1% 2,742,266 1,465,899 81.3% 1,802,149 1,352,380 75.0% 1,010,946 2,924,256 61.9% 4,765,532 3,930,792 82.5% 3,050,889 132,849 11.3% 1,247,950 59,225 4.7% 638,905 858,113 75.1% 1,250,472 890,579 71.2% 451,790 $ 51,774,670 71.3% $ 73,893,343 $ 50,302,772 68.1% $20,943,661 Yakima.7979.1.FIN_Report_3rd_Otr_2016.docx 11 of 14 Exhibit II CAPITAL IMPROVEMENT FUNDS Fund Actual Beg Bal 01/01/16 Amended Budget Revenues Actual Revenue % Rec'd Appropriations Amended Actual Budget Exp % Exp'd Ending Balance 12/31/16 Arterial Street $ 1,281,875 $10,397,841 $ 2,338,397 22.5% $10,737,025 $ 2,030,723 18.9% $ 1,589,549 Central Bus District Capital (23,298) 2,826,220 646,666 n/a 2,881,000 571,752 19.8% 51,616 C apito I The atre Construction 248,750 66,641 40,821 n/a 242,351 29,776 n/a 259,795 Yakima Redevelopment Area 701,125 1,000,000 1,466,776 146.7% 1,500,000 403,261 26.9% 1,764,640 Parks and Recreation Capital 3,810,256 508,400 542,605 n/a 3,344,049 2,885,902 86.3% 1,466,959 Fire Capital 36,925 2,242,410 191,742 8.6% 2,239,976 676,764 30.2% (448,097) Law and Justice Capital 740,305 479,350 350,476 73.1% 693,000 310,794 44.8% 779,987 Public Works Trust Constr 1,171,476 802,000 675,774 84.3% 1,011,385 563,904 55.8% 1,283,346 REET 2 Capital 352,961 802,000 675,774 84.3% 978,250 851,817 87.1% 176,918 Street Capital 94,164 5,095,306 87,310 1.7% 5,000,000 167 n/a 181,307 Convention Center Cap Impr 585,025 360,400 269,925 74.9% 385,000 101,530 26.4% 753,420 Reserve for Capital Impr 1,617,047 300,000 300,000 100.0% 1,465,000 847,775 57.9% 1,069,272 A irpo A Capital 795,550 11,325,568 5,920,057 52.3% 11,645,247 6,176,954 53.0% 538,653 Stormwater Capital 3,044,907 700,000 425,000 60.7% 2,400,000 29,685 1.2% 3,440,222 Transit Capital 4,464,872 3,849,875 1,242,735 32.3% 4,334,205 2,131,330 49.2% 3,576,277 Wastewater Capital 10,256,929 3,501,500 2,644,112 75.5% 7,790,000 465,010 6.0% 12,436,031 Water Capital 4,010,943 1,000,000 375,000 37.5% 2,257,738 192,456 8.5% 4,193,487 Irrigation Capital 1,503,177 1,387,060 944,521 68.1% 1,367,542 441,994 32.3% 2,005,704 Total Capital Impr Funds $ 34,692,989 $46,644,571 $19,137,691 41.0% $60,271,768 $18,711,594 31.0% $ 35,119,086 Yakima.7979.1.FIN_Report_3rd_Qtr_2016.docx 12 of 14 Exhibit III RESERVE AND OTHER FUNDS Yakima.7979.1.FIN_Report_3rd_Qtr_2016.docx 13 of 14 Actual Revenues Appropriations Ending Beg Bal Amended Actual % Amended Actual % Balance Fund 01/01/16 Budget Revenue Rec'd Budget Exp Exp'd 12/31/16 Employee Benefit Reserves Unemployment Comp Res $ 441,244 $ 197,000 $ 153,491 77.9% $ 227,351 $ 97,581 42.9% $ 497,154 Employees Health Ben Res 1,616,969 10,407,500 7,768,096 74.6% 10,388,338 7,926,319 76.3% 1,458,746 Worker's Compensation Re; 734,214 1,069,780 879,697 82.2% 1,311,017 832,045 63.5% 781,866 Wellness/EAP 127,185 121,800 463 0.4% 121,800 38,324 31.5% 89,324 Firemens' Relief and Pensio_ 1,019,850 1,324,260 799,556 60.4% 1,349,628 908,445 67.3% 910,961 Total Employee Ben Reserve $3,939,462 $13,120,340 $ 9,601,303 73.2% $13,398,134 $ 9,802,714 73.2% $3,738,051 Operating Reserves Capitol Theatre Reserve $ 36,641 $ - $ - n/a $ 36,641 $ 18,321 50.0% $ 18,320 Risk Management Reserve 733,243 4,894,000 3,538,507 72.3% 4,864,864 4,737,201 97.4% (465,451) Total Operating Reserve $ 769,884 $ 4,894,000 $ 3,538,507 72.3% $ 4,901,505 $ 4,755,522 97.0% $ (447,131) Trust and Agency Funds Cemetery Trust $ 647,731 $ 21,000 $ 6,161 29.3% $ 12,000 $ - 0.0% $ 653,892 Agency Fund-YAKCORPS - 605,777 664,615 109.7% 605,777 290,512 48.0% 374,103 Total Other Funds $ 647,731 $ 626,777 $ 670,776 107.0% $ 617,777 $ 290,512 47.0% $1,027,995 Yakima.7979.1.FIN_Report_3rd_Qtr_2016.docx 13 of 14 Fund GO Bond Redemption LID Guaranty 2002 GO Convention Center 2005 GO Various Bonds 1996 GO LTD - Conv Center LID Debt Service Control Total G.O. Bond Redemption Water/Sewer Revenue Bond Redemption Water Rev Bonds & Debt Service WW Rev Bond & 2008 Debt Service Irrigation Bond Debt Service WW Rev Bond Reserve & 2012 Debt Total W/S Rev Bond Red Exhibit IV BOND REDEMPTIONS FUNDS Actual Revenues Appropriations Ending Beg Bal Amended Actual % Amended Actual % Balance 01/01/16 Budget Revenue Recd Budget Exp Exp'd 12/31/16 $ 25,329 $ 50 $ - 0.0% $ - $ - n/a $ 25,329 163,591 1,026,103 744,197 72.5% 1,024,025 550,700 53.8% 357,088 8,734 3,312,239 2,986,684 90.2% 3,312,239 2,319,047 70.0% 676,371 69,030 428,750 309,598 72.2% 424,700 29,850 7.0% 348,778 - 48,000 108,329 225.7% 48,000 - 0.0% 108,329 $ 266,684 $4,815,142 $4,148,808 86.2% $ 4,808,964 $2,899,597 60.3% $ 1,515,895 366,380 235,125 117,350 49.9% 234,700 14,850 6.3% 468,880 - 411,813 308,859 75.0% 411,813 80,906 19.6% 227,953 34,813 317,542 317,542 100.0% 317,541 317,541 100.0% 34,814 1,618,148 1,166,700 873,750 74.9% 1,165,000 140,000 12.0% 2,351,898 $ 2,019,341 $ 2,131,180 $1,617,501 75.9% $ 2,129,054 $ 553,297 26.0% $ 3,083,545 Yakima.7979.1.FIN_Report_3rd_Otr_2016.docx 14 of 14