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Home My WebLink About07/22/2025 04.C. Discussion of city service level reductions at $9 m, $4.5 m, $3 m, $1.8 m r:- `y � ljlt ' 11 / r• s . BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. 4.C. For Meeting of: July 22, 2025 ITEM TITLE: Discussion of city service level reductions at $9 m, $4.5 m, $3 m, $1.8 m SUBMITTED BY: *Craig Warner, Director of Finance & Budget SUMMARY EXPLANATION: Discussion of service level reductions to meet budget reductions of$9 m, $4.5 m, $3 m, $1.8 m. Presentation of levy options. ITEM BUDGETED: N/A STRATEGIC PRIORITY 24-25: A Resilient Yakima RECOMMENDATION: Outline the next steps for City staff. ATTACHMENTS: Presentation_Yakima_Budget_CW_and_VB_combined 8 ,„_,,,,, ,,,,,,,,, 0 f T ,z , ,,,,, ,..... „/ „. .„„„s„„_.:,..., 2025-2026 Community at a Crossroads Vicki Baker, Yakima City Manager Craig Warner, Director of Finance and Budget 9 COUNCIL GOALS FOR YAKIMA Setting the stage for a thriving, growing community Safe & Healthy Yakima Reduce the number of people living on the streets Crime Reduction 7� d..i, . Safe Infrastructure - ,.� Fire prevention through design i~ ip ._._,.,_ city o A Resilient Yakima Yak imp . ' "A" Design, Build & Maintain Robust Infrastructure S'fabe is Pfigril ieS , (Py iJr" Streamline City Processes -v.,. Build capacity to deliver on budgeted expectations =. "' Adopt Sustainable Budgeting Practices r am Imp Talmo.-i -silk " iF Diversify and Focus on Economic Development ; Build and Leverage local and regional partnerships aIIIIIIII 10 Page 2 COUNCIL GOALS FOR YAKIMA A Thriving Yakima Reduce Homelessness Nankai PialLma Become an attractive tourist and business destination = :: Promote Yakima's unique culture A* Maximize current assets in the community Improve opportunities for youth and families City of u �" " Become a connected community Si maSirtatigic PflwiitIo:. •rwainerviwPg An Engaged Yakima II Foster community ownership Promote a positive community image Develop a culture of two-way communication ' Page 3 11 City Funds All City Funds I I Governmental Proprietary Fiduciary General Fund Purpose (examples): — General Fund — Enterprise Special Revenue - restricted externallyI Utility Tax p Sales Tax (Streets, Convention Center) Property Tax Capital - for all non-proprietary capital — Special — Internal Debt - for all non-proprietary debt Revenue Service Enterprise - business-like with external customers — Capital Internal Service - internal customers Fiduciary ,,' — Debt - not our money (Cemetery Trust) "IihillIIIIIMM Page 4 12 MMI What is i n the City of Yakima _ _ _ ... _.,_,,.... s : , _ ....• . . .. Y • ..r S * - 4-- I - ' , . GENERAL FUND? r ... ____ _---. - : EY -, __ . . . , !- �� A . : 41t) / POLICE 10110E 4 % l .; ;_ aim I_' jilt! • I y t , l�: I ' .n I ill• E : : • •$ I. . 1 444. . �/ ;iiiICI Ili a r f L 4� -. CITY OF YAKIMA — ` A FSI'I :t DEPnFTMENT.t_tTY ATTCIRNL'r r N' 4 w," ^ u • rs i, .�, a • aki-fr COURT = IIMaal `` - +� �� _ ', ' u LII ! pn .. j� ":- 6. ttl�, -. it 'C".:'.� A =# V $ 81 ?.Cif. €' }IS711 ' k I :D c: 17 ._ �'i'_ -. _ t. ^ a F it iraf i iii f FACILITIES MANAGEMENT { r' r9 I T - ►- 1t y� a ---� FINANCIAL PLAN HUMAN y.a / 0 ` ^f' RESOURCES -)q �e — uo �I �' ;� ` "1,41AGEM,E.NT CA?EER wr f 7 J - — T __�-�_��I 1 - RECRUITrug i •^ TRAINING ABILITY Page 5 `--> MIRING 13 What services are NOT in the GENERAL FUND? --,-., - _ i .• .- . r • k. _ ice"_ ., :. ,„ r `'lirr4Illht _, 1 •+ .4V4 'wm4 rrtg4 r / J 6- !. 1 n ' _ .;4 "."\\III. \''',l',..7_if; ,.: 11.igh 4 :.. 1 ' .- ,r,....a.n...�. 1 {yF4'a AP9i y ■-ter . •.e — • ! ilk / f me • • . . - may • -. - I U sn -;1 ':, • Funding Ho . 1-+.$So ut1ORS. Social Services 11 • 14 Page 6 How did we get here? • Structural Issues: • Property Tax 1 % reducing levy rate - $200,000 this year • Not keeping up with cost of inflation • One-time Federal Covid money helped through the pandemic, but funds have been obligated and exhausted • Cities across the state grappling with this issue, passing levies, raising rates • Increased population and demand for services from 65,000 people to 100,000 • Several City Managers have made cuts over the last 20 years • Carry forward deficit of $8. 5M from 2023, temporary measures in 2024 • Started with a negative trajectory as costs rise rapidly • Cuts made in 2023 were mainly to support services and not the main cost drivers, problem pushed to 2025-26 budget July 22, 2025 Yakima City Council 15 Whatarewedoingaboutit? � - -� 2025 - 2 B engal Budget is constitutionally required to balance ,� . 2025-2026 budget due by Dec 31 , 2024 AdoptedRudget ✓ January-May 2025 PriorityBased Budgeting CommunityOutreac -� =4' =s Y Y g g • - �` _ 4 -z ✓ Community Presentations jj.-Zj) i ✓ 3Town Halls = =_ : k , ✓ Pop Up Table eventsC ,.R :� r ✓ Online and social media r J ✓ Survey of the public 1 ' ✓ Feb-May 2025 CITIZEN BUDGET COMMITTEE fir ,,- _ i 10,11 \ .,k, - -... ,, ✓ Report to Council with staff recommendations June 2025 ,� imo_.�,, ,, , PfM,yCN, ,,.; Revenue recommendations due to Yakima County by Aug 5 Mid-biennial adjustment to 2026 budget in Fall 2025 Page 8 _ 16 ClitY Council Cut Packages Oir tt MR 17 $ 7 . 2M Levywith $ 1 . 8M C Reduction Budget Reductions Amount FTE Eliminate Lobbying and Council Travel $ 120,000 - Eliminate Funding for Fireworks $ 15,000 - Reduce Windows Alive Funding $ 10,000 - Eliminate Flowers Downtown $ 44,300 - Eliminate Funding to YCDA $ 25,000 - Reduce Economic Development Staff $ 100,000 1 .00 Remove Main Street Match $ 50,000 - Streamline Civil Service $ 60,000 0.50 Reduce Financial Service Department $ 150,000 1 .00 Eliminate Trolley Maintenance $ 10,000 - Eliminate Alley Maintenance $ 30,000 - Eliminate Funding for Sidewalk Improvements $ 105,000 - Reduce Street Maintenance Funding (or Pass TBD $20) $ 500,000 2.00 Create Reserve for Snow and Ice Control Funding $ 250,000 - Eliminate Day Camps $ 170,000 2.00 Reduce Tahoma Cemetery Watering $ 15,000 - Eliminate Graffiti Removal Program $ 72,500 1 .00 Eliminate Funding for Adult Sports Program $ 36,917 0.50 Reduce Funding for Community Recreation $ 50,000 - Total: $ 1,813,717 8.00 July 22, 2025 Yakima City Council 18 $ 7 . 2M Levywith $ 1 . 8M C Reduction or Elimination Services Saved Reduction Amount FTE Budget Reductions Amount FTE Reduce Clean City Program $ 185,000 1.50 Eliminate Lobbying and Council Travel $ 120,000 - Eliminate Youth Sports Programs $ 61,000 0.50 Eliminate Funding for Fireworks $ 15,000 - Close Franklin Pool (2027 Capital Refurbish) $ 167,000 - Reduce Windows Alive Funding $ 10,000 - Reduce Washington Fruit Company Center $ 50,000 - Eliminate Flowers Downtown $ 44,300 - Reduce Harman Center $ 50,000 - Eliminate Funding to YCDA $ 25,000 - Eliminate legal Dept Front Staff $ 80,000 1.00 Reduce Economic Development Staff $ 100,000 1.00 Reduce Funding for YPD Traffic Unit $ 160,000 1.00 Reduce Animal Control and Parking-One CSO $ 88,000 1.00 Remove Main Street Match $ 50,000 - Eliminate 2 YPD Crime Analysts $ 300,000 2.00 Streamline Civil Service $ 60,000 0.50 Eliminate Crime Free Rental Housing $ 82,000 1.00 Reduce Financial Service Department $ 150,000 1.00 Reduce Code Enforcement Officers $ 171,000 2.50 Eliminate Trolley Maintenance $ 10,000 - Close Washington Fruit Company Center $ 269,591 2.00 Eliminate Alley Maintenance $ 30,000 - Close Lions Pool $ 479,000 1.00 Eliminate Funding for Sidewalk Improvements $ 105,000 - Close Harman Center $ 332,000 3.00 Reduce Street Maintenance Funding (or Pass TBD $20) $ 500,000 2.00 Reduce YPD and YFD Training Budgets $ 50,000 - Create Reserve for Snow and Ice Control Funding $ 250,000 - Additional Reduction Animal Control and Parking Enforcement $ 162,000 2.00 Eliminate Day Camps $ 170,000 2.00 Reduce Parks Maintenance Funding $ 380,000 4.00 Reduce Tahoma Cemetery Watering $ 15,000 - Close Fire Station #92 $ 1,700,000 11.00 Eliminate Graffiti Removal Program $ 72,500 1.00 Reduce YPD and YFD Training Budgets $ 50,000 - Eliminate Funding for Adult Sports Program $ 36,917 0.50 Eliminate YPD Crime Analysis $ 181,000 1.50 Reduce Funding for Community Recreation $ 50,000 - Eliminate YPD Property Crimes Unit $ 750,000 4.00 Total: $ 1,813,717 8.00 Eliminate YPD Gang Unit $ 1,000,000 4.00 Eliminate YPD Narcotics Unit $ 470,000.00 3.00 Total: $ 7,217,591 46.00 July 22, 2025 Yakima City Council 19 $ 6 . 0M Levywith $ 3 . OM C Budget Reductions Amount FTE Eliminate Lobbying and Council Travel $ 120,000 - Eliminate Funding for Fireworks $ 15,000 - Reduce Windows Alive Funding $ 10,000 - Eliminate Flowers Downtown $ 44,300 - Eliminate Funding to YCDA $ 25,000 - Reduce Economic Development Staff $ 100,000 1.00 Remove Main Street Match $ 50,000 - Streamline Civil Service $ 60,000 0.50 Reduce Financial Service Department $ 150,000 1.00 Eliminate Trolley Maintenance $ 10,000 - Eliminate Alley Maintenance $ 30,000 - Eliminate Funding for Sidewalk Improvements $ 105,000 - Reduce Street Maintenance Funding (or Pass TBD $20) $ 500,000 2.00 Create Reserve for Snow and Ice Control Funding $ 250,000 - Reduce Clean City Program $ 185,000 1.50 Eliminate Graffiti Removal Program $ 72,500 1.00 Eliminate Funding for Adult Sports Program $ 36,917 0.50 Reduce Funding for Community Recreation $ 50,000 - Eliminate Day Camps $ 170,000 2.00 Reduce Tahoma Cemetery Watering $ 15,000 - Eliminate Youth Sports Programs $ 61,000 0.50 Close Franklin Pool (2027 Capital Refurbish) $ 167,000 - Reduce Washington Fruit Company Center $ 50,000 - Reduce Harman Center $ 50,000 - Eliminate legal Dept Front Staff $ 80,000 1.00 Reduce Funding for YPD Traffic Unit $ 160,000 1.00 Reduce Animal Control and Parking-One CSO $ 88,000 1.00 Eliminate 2 YPD Crime Analysts $ 300,000 2.00 Eliminate Crime Free Rental Housing $ 82,000 1.00 Total: $ 3,036,717 16.00 July 22, 2025 Yakima City Council 20 $ 6 . 0M Levywith $ 3 . OM C Budget Reductions Amount FTE Eliminate Lobbying and Council Travel $ 120,000 - Eliminate Funding for Fireworks $ 15,000 - Services Saved Reduce Windows Alive Funding $ 10,000 - Eliminate Flowers Downtown $ 44,300 - Eliminate Funding to YCDA $ 25,000 - Reduce Economic Development Staff $ 100,000 1.00 Amount FTE Remove Main Street Match $ 50,000 - Reduce Code Enforcement Officers $ 171,000 2.50 Streamline Civil Service $ 60,000 0.50 Close Washington Fruit Company Center $ 269,591 2.00 Reduce Financial Service Department $ 150,000 1.00 Close Lions Pool $ 479,000 1.00 Eliminate Trolley Maintenance $ 10,000 - Close Harman Center $ 332,000 3.00 Eliminate Alley Maintenance $ 30,000 - Reduce YPD and YFD Training Budgets $ 50,000 - Eliminate Funding for Sidewalk Improvements $ 105,000 - Additional Reduction Animal Control and Parking Enforcement $ 162,000 2.00 Reduce Street Maintenance Funding (or Pass TBD $20) $ 500,000 2.00 Reduce Parks Maintenance Funding $ 380,000 4.00 Create Reserve for Snow and Ice Control Funding $ 250,000 - Close Fire Station #92 $ 1,700,000 11.00 Reduce Clean City Program $ 185,000 1.50 Reduce YPD and YFD Training Budgets $ 50,000 - Eliminate Graffiti Removal Program $ 72,500 1.00 Eliminate YPD Crime Analysis $ 181,000 1.50 Eliminate Funding for Adult Sports Program $ 36,917 0.50 Eliminate YPD Property Crimes Unit $ 750,000 4.00 Reduce Funding for Community Recreation $ 50,000 - Eliminate YPD Gang Unit $ 1,000,000 4.00 Eliminate Day Camps $ 170,000 2.00 Eliminate YPD Narcotics Unit $ 470,000.00 3.00 Reduce Tahoma Cemetery Watering $ 15,000 - Total: $ 5,994,591 38.00 Eliminate Youth Sports Programs $ 61,000 0.50 Close Franklin Pool (2027 Capital Refurbish) $ 167,000 - Reduce Washington Fruit Company Center $ 50,000 - Reduce Harman Center $ 50,000 - Eliminate legal Dept Front Staff $ 80,000 1.00 Reduce Funding for YPD Traffic Unit $ 160,000 1.00 Reduce Animal Control and Parking-One CSO $ 88,000 1.00 Eliminate 2 YPD Crime Analysts $ 300,000 2.00 Eliminate Crime Free Rental Housing $ 82,000 1.00 Total: $ 3,036,717 16.00 July 22, 2025 Yakima City Council 21 $4 . 5M Levywith $4 . 5M C Reduction Budget Reductions Amount FTE Previous Cut Package $ 3,036,717 16.0 Reduce Code Enforcement Officers $ 171 ,000 2.5 Close Washington Fruit Company Center $ 269,591 2.0 Close Lions Pool $ 479,000 1 .0 Close Harman Center $ 332,000 3.0 Reduce YPD and YFD Training Budgets $ 50,000 0.0 Additional Reduction to Animal Control and Parking Enforcement $ 162,000 2.0 Total: $ 4,500,308 26.5 July 22, 2025 Yakima City Council 22 $4 . 5M Levywith $4 . 5M C Reduction or Elimination Services Saved Reduction Budget Reductions Amount FTE Previous Cut Package $ 3,036,717 16.00 Reduce Parks Maintenance Funding $ 380,000 4 Reduce Code Enforcement Officers $ 171 ,000 2.5 Close Fire Station #92 $ 1 ,700,000 11 Close Washington Fruit Company Center $ 269,591 2.0 Reduce YPD and YFD Training Budgets $ 50,000 0 Close Lions Pool $ 479,000 1 .0 Eliminate YPD Crime Analysis $ 181 ,000 3.5 Close Harman Center $ 332,000 3.0 Eliminate YPD Property Crimes Unit $ 750,000 4 Reduce YPD and YFD Training Budgets $ 50,000 0.0 Eliminate YPD Gang Unit $ 1 ,000,000 4 Eliminate YPD Narcotics Unit $ 470,000 3 Eliminate Animal Control and Parking Enforcement $ 162,000 2.0 Total: $ 4,500,308 26.50 Total: $ 4,531,000 27.50 Fee/Program Adjustments July 22, 2025 Yakima City Council 23 $ 9 . 0M Cut Budget Reductions Budget Reduction FTE Previous Cut Packages $ 4,500,308 26.50 Reduce Parks Maintenance Funding $ 380,000 4 Close Fire Station #92 $ 1 ,700,000 11 Reduce YPD and YFD Training Budgets $ 50,000 0 Eliminate YPD Crime Analysis $ 181 ,000 1 .5 Eliminate YPD Property Crimes Unit $ 750,000 4 Eliminate YPD Gang Unit $ 1 ,000,000 4 Eliminate YPD Narcotics Unit $ 470,000.00 3 Total: $ 9,031 ,308 54 July 22, 2025 Yakima City Council 24 General Fund Funded Vacant Positions Vacant Positions 32.67 $ 3,610,135.00 Cut Packages (20.67) $ (2,202,424.00) Grant Positions (1.00) $ (194,890.00) 11 $ 1,212,821.00 Fill Fire Positions 2 $ 314,631.00 Corrections (Jail) 5 $ 554,411.00 City Engineer (Acting) 1 $ 160,666.00 Street Inspector 1 $ 46,953.00 49% General Fund Economic Development Assistant 1 $ 62,104.00 60 % General Fund Facilities Specialist 1 $ 74,056.00 11 $ 1,212,821.00 July 22, 2025 Yakima City Council 25 y :. - �: , Where doesyourpropertytax dollargo ? ''4�,,,ti •• •• ,,,, Taxing entities for the properties in the Yakima School District 4 RPORATE1) �t`'�'1jv,,x,,,''' '' City of Yakima tax code area 331, 333, 334, 335, and 349 I •,*-,, iq_.) dpli „iii,,.1,, 140 I) ck .) I? a.) tit., ps t. oj—, ) t ii,1 Ejeliga:ae,„06,f,„ : ?le i ii 4,, 11, ;. -' +l Qom :,'sly�.: l \ � � - c !� THIS NOTE IS LEGAL TENDER '��µ+� 3 _ ALL DEBTS PUBLIC AND PRIVAT TE „�f 4 ° ! �' "� `G >' �f B 03542754 F . �� WASHINGTON.D.C. , B32 �7 ) To4q a �) _ B 03 42754 F �. T ' ; B95 Zpp a 2 1% N�a N _ SOW , , .JT l x fires NU,, ,„s. '_- "Crr/daivNrvl,f s rq s w� County y,� - �_ �r� 11; h,It, �S .rT �. .^9^,.14 6 �'. \ �,� l 7 1 `� y'JtF'N�. �ti�`v{� �d7l�I/ 5�, ` '.,, � &`� N t L,. k. utS Flood Control // 3% 3% 20% 26% 36% County Yakima City of State School Yakima 11% Yakima Levy 1 & 2 School EMS Valley Yakima Regional County Library July 22, 2025 Yakima City Council 26 General Fund Ending Fund Balance vs PoLicy Reserve _. _ . _ . • _ _ (Fund 001 Only - With Transfers) With ARPA — _ - Revenue Replacement - ::: $10,000,000 416 . ($10,000,000) ($20,000,000) P. - ate" • ii#. ($30,000,000) ($10,000,000) ($50,000,000) 2023 2024 2025 2026 2027 2028 2029 Actual YE Est Budget Budget Projected Projected Projected # GE End Balance # Policy Rsv Mitt-16.7°e July 22, 2025 Yakima City Council 19 27 Current General Fund EndingFund Balance with 9M of adjustments vs PoLicy Reserve (General Fund - 001 , 003, 612 & 613) 2023 2024 2025 2026 2027 2028 Actual YE Est Budget Budget Projected Projected $20,000,000 "1111.11111111— i. ti -i . - $15,000,000 $10,000,000 $5,000,000 ‘' $(5,000,000) _�� •tip - 3.4,•• i6 J $(10,000,000) $(15,000,000) $(20,000,000) Ending Fund Balance July 2025 —Policy Reserve Amount Ending Fund Balance as of 2024 July 22, 2025 Yakima City Council 20 28 What about the future? 025 - 2 B enn al BEYOND THE CURRENT BUDGET - LEVELING OFF `d ted Budget AND ADDRESSING THE COUNCIL PRIORITIES z z ;, ,� Continued Streamlining and Modernizing across the city , �; =T �` Re-examine and renegotiate contracts - - i . iVrr. A Business Friendly Climate - continue listening to business Prioritize processing of permitting/planning �` r ., Consider cost of Fire inspections and insurance savings benefitslii I -mob- .1, . ,,, Collaborative efforts with other jurisdictions to save money Considering privatizing when it makes sense Look at legacy programs to shore up finances,; Continue proactive measures to make Yakima more attractive :� tih Continue regular community engagement to Listen to residents ,r,io. s, i.,. hi .. —11111111111111111111111111 Page 21 Property Tax Levy Levy Increase Additional Revenue Generated Monthly Cost for an Average Home Value$356,395 Monthly Cost for a Home Value$600,000 $ 0.05 $ 604,300 $ 1.49 $ 2.51 $ 0.10 $ 1,208,600 $ 2.98 $ 5.02 $ 0.15 $ 1,812,900 $ 4.47 $ 7.53 $ 0.20 $ 2,417,200 $ 5.96 $ 10.03 $ 0.25 $ 3,021,500 $ 7.45 $ 12.54 $ 0.30 $ 3,625,800 $ 8.94 $ 15.05 $ 0.35 $ 4,230,100 $ 10.43 $ 17.56 $ 0.40 $ 4,834,400 $ 11.92 $ 20.07 $ 0.45 $ 5,438,700 $ 13.41 $ 22.58 $ 0.50 $ 6,043,000 $ 14.90 $ 25.08 $ 0.55 $ 6,647,300 $ 16.39 $ 27.59 $ 0.60 $ 7,251,600 $ 17.88 $ 30.10 $ 0.65 $ 7,855,900 $ 19.37 $ 32.61 $ 0.70 $ 8,460,200 $ 20.86 $ 35.12 $ 0.75 $ 9,064,500 $ 22.35 $ 37.63 $ 0.80 $ 9,668,800 $ 23.84 $ 40.14 $ 0.85 $ 10,273,100 $ 25.33 $ 42.64 July 22, 2025 Yakima City Council 22 30 .,.. •ram