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HomeMy WebLinkAbout11/18/2025 08.B. Second public hearing on the 2026 Preliminary Mid-Biennial Budget for the City of Yakima l'.4‘ , F s BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. 8.B. For Meeting of: November 18, 2025 ITEM TITLE: Second public hearing on the 2026 Preliminary Mid-Biennial Budget for the City of Yakima SUBMITTED BY: Vicki Baker, City Manager *Craig Warner, Director of Finance & Budget SUMMARY EXPLANATION: In accordance with RCW 35.34.130, the City Council is required to review and amend the 2025 - 2026 Biennial Budget between September 1 and December 31 of the first year of the biennium. This is the second of two public hearings, with the first hearing held on Wednesday, November 12th, providing an additional opportunity for community members and other interested parties to offer input, comments, and questions regarding proposed budget modifications and adjustments to appropriations and funding levels. ITEM BUDGETED: N/A STRATEGIC PRIORITY 24-25: A Resilient Yakima RECOMMENDATION: Conduct the Public Hearing and accept public testimony. ATTACHMENTS: Proposed Mid Bienneal Budget Modifications Public Hearing #2.pptx 320 City of Yakima I- -i .. -" _ _ - _ - .. 2026 Proposed - J C .•_:._ -. -a _M_- t e•,45.. . Mid-Biennial ... --.....-- .1 _ rr..•a_. 16-1- _, :_ ,, Budget .,„._ _ . _LrO_N.. O_.M.1W:I1 1111...1.•.M.„-D-_ _ 711 • 711Pa - „.,.. .::.".--r-7-=:- - - ' - '_- '` I Modifications ``, arm-.— INF,Fwe.i f �At�� -i7 r .._ _ . . 2nd Public Hearing 11 _ ----eisamp 1 - blillkillisp... : ' . Mg AMU -,--=', , i 1 Dm ..L` ` �� , �,:, ; Presented by: , �'' - - .- ,:b,� tam lei.:" i .,; _ CraigWarner, Director of tr. '� y Finance & Budget November 18, 2025 --___- - - 321 / \ \ `\ ( \\ \\ \ • - \ \ \ I I -NI 1 I , r � ' e t Overview \ 1 / , I I / / / I I / / / / / / / / / / / / / / / // / / , , State law (RCW 35.34. 120) requires a balanced ' '' budget. -''' "The expenditures as classified and itemized in ; the final adopted biennial budget. . . shall not / exceed the total of the estimated revenues and 1 'the fund balance for each fund." .2 / The City of Yakima has already adopted a 2025- / 2026 Biennial Budget. These changes are - /' ii amendments to the adopted budget for 2026. _ , 322 , \ `\ ( \\ \ \\ .\ \\ \ 1 \ 1 I As Posted 9/30 & Presented 10/14/2025 `\\ \ 2026 General Fund BudgetAdjustments , ; , i i ,� , ,' 2026 Adopted 2026 Proposed " ' Budget Amendments Budget ,-'' Beginning Fund $13,485,373 ($1,475,778) $12,009,595 ' Balance Revenues $76,779,080 $16,204,268 $95,983,348 Expenditures ($84,903,677) ($11,520,077) ($96,423,754) I I Ending Fund $5,360,776 $6,208,413 $11,569,189 ' Balance ; 12% Reserve $10,188,441 $11 ,570,850 ,; , Reserve ($4,827,665) ($1,661) ____ " Surplus/(Deficit) 323 , \ \ \ \\ \ \ \ 1 I--.- -\ ,, \ , , , , As Presented 10/14/2025 -\ 1 _ / / / 1 I / ,' ' / '' / / 2026 Unbudgeted Needs \ I / , ' I , 1 , , , , , , , , , , ,, ,/ , , ,/ • ,,, ./, , Police Equipment Replacement ($200K) $ 750,000 , ' Fire Equipment Replacement ($250K) $ 600,000 ,, , / Snow & Ice Removal Reserve $ 250,000 Bond Payment for Facility Upgrades $ 750,000 ,% Police Training Increase $ 100,000 1 IT Firewall Upgrade $ 75,000 IT Server Replacement $ 275,000 , $ 2,800,000 , / , Note: Some of these could use one-time funds such as reserves if available / i / ; / / / / / . 324 • Worker's Compensation Rates Adjusted • Amended Labor Projections • Social Security Maximum What • Minimum Wage Increased changed . Union Gap Fire Contract • Other Misc. Changes • $6 million Reduction in Property Tax 325 , \ • `\ \• \\ \ \, �\ \ 1 \ 1 1 Revised 2026 General Fund Budget Adjustments I I , , ,, , , , I , , , 2026 Proposed 2026 Revised Budget (10/14) mendments Budget (11/12) 'Beginning Fund $12,009,595 ($36,316) $11 ,973,279, Balance Revenues $95,983,348 ($7,961,764) $88,021 ,584 Expenditures ($96,423,754) $8,072,283 ($88,351 ,471) I I Ending Fund $11,569,189 $74,203 $11,643,392 ' ' / Balance ; 12% Reserve $11 ,570,850 $10,602,177 ;; ;; , Reserve ($1,661) $1,041,215 =__- """ ' Surplus/(Deficit) -"" 326 N \ \N I I \ \ I I \1 , ,,fro osed Ex ense Red uctIons \ 1 / , p p 1 I I / / / 1 I 1 1 I I I I I l / / / I I I / / / / / // / / / / / // / / / / // / / / / // / / / // / / // / / // // // // -'>-- Police: $3,000,000 Fire: $1 ,750,000 > Parks: $1 ,400,000 327 Proposed Reductions Police: $3,000,000 12 Police Officer position 2 filled & 10 vacant positions 1 Police Sergeant 1 filled 4 Community Service Officers 3 filled & 1 vacant position 1 Analyst Supervisor 1 filled position 1 Analyst 1 filled position Reduce radio purchase funding to accommodate transferring 1 CSO to the 3/10 budget Reduction of $50 K to Humane Society Contract 328 Proposed Reductions Fire: $1 ,750,000 Close Station 92, utilizing filled staff positions at other stations to reduce overtime expense Prioritizing retention of employees 329 Proposed Parks: $1 ,400,000 >Washington Fruit Community Center > Lions Pool 5 Vacant, 3 Filled FTEs, & 23 Filled Part-Time Harman Center Positions 16% Reduction in Parks Maintenance Note: Removes the General Fund contributions for these programs 330 / \ \ \ \. \\ \ \\ \\ \ 1 \ \ 1 I \ _ \ \ I I _ '\ \ I / I 12t, 6 2City-Wide ustments 1 I / / I / / / / / / / / / / / , / / ,, / /'/'/' // 2 Proposed 2026 Revised i',;%' Budget (10/14) Amendments Budget (11/12) '',/'' Beginning Fund $136,742,810 $2,0 $138,808,491 Balance Revenues $312,383,894 ($9,474,756) $302,909,138 1 1 Expenditures ($326,717,428) $9,647,658 ($317,069,770) ;, ,/ 1 / , , / , / Ending Fund $122,409,276 $2,238,583 $124,647,859 , Balance ' '' , ' / , , , , , Note: Includes the General Fund _ 331 / \ \ \ ( \\ \\ \ \•••,\ \ I I _ \ \ I / I /Neekt/ Ste s , , / p\ 1 , , I I I / , /, I I I I , / / / / / / / / / , / / /, / / / / /, // / / , „/ / // / /, // / /, , / / // / / // / /// / .- / / / / / / , / / // 2026 Mid-Biennial Budget Adoption December 2nd ,- I / / I / , I // / / ///// , / / - -/ / / / / / / / -- - / / / / / - - 332 / \ \ \ / \\ \\ \ N.N. \ 1 I \\ \ I I \ \ I / / I\ \ / / / / ^\ 1 --/ / / / I /� i/ / / 1 / // / \ I I ,' / / \ 1 l / // // 1 I I / // // I I 1 I / / I I 1 l l / / / / / ! / / / / / / / / I/ // / / // / / / / / ��/ / // // // // / ./ // / / / // / / // / // Questions/ / ... „/ Discussion // I / / I / I / I I // / / ///// / / / / // / ,,f „/, „ „ ______. „. ....., , . . .„ ,. „ „„ .... , _ - . , , „ „ ..... _____ , ,, ,, ,.... _______ ,„ „ ......_ / / / /�' i / / / // // /// / / / / / // / / / / / / / 333 / \ \ \ / \\ \ \ \ \ \ 1 ,\ \ I I -\ \ I / / / \ \ / / / / ;'Revenue Options / , / / I I I / / I I I / / / / / / / / / / ,';%/; ' 2026 Budget Options: -- • Public Safety Sales Tax 1/10th of 1 , , , ' • Utility Tax ',-'' •■ Business License Fees Transportation Benefit District (General Fund not impacted) I Future Year Options: I I I/ / • Regional/Fire District ; , • EMS Levy ; / , • Parks District Levy Lid Lift / ' Note: This list is not every option ___-- ' ' - 334 ,, \ , , , , , ----_, i\--\\\\ , Utility Taxes , , , , , , _ „, ;'k , ';impacted Utilities: „ r , 1 1 1 ; , " ' 0 / •i Water — Base Fee plus Consumption , , Wastewater — Base Fee plus Consumption Refuse - Consumption Stormwater — Lot Size/Imperviable Surface , Generates approximately $600,000 per 1 % imposed I Water/Wastewater/Refuse: Average Water/Wastewater/Refuse bill is approximately $200 every two months $2000 at 1 % is $2.00 billed 6 times per year is $12.00 per year % Stormwater: Billed annually and dependent on Lot Size/Imperviable Surface ,,- _______ ;%''' 335 / \ \ `\ / \\ \\ \ \ 1 I \ \ , , , , City of Yakima - Property Tax 1 / ' /, ` ' Pssessments \ I / , ' ' I I / / , / 1 1 / / / , , , , / / / , / I, /,, �' City Total Average Home ' ';' ,' Assessed Annual Average ',' ,' / Assessed Value Value by Tax Total Total Annual /' i' Assessed Value Total Tax Rate per$1,000 Change% Change% Total Tax Increase Growth$ Growth% Growth �'� 2025 $ 12,101,391,489 $22,358,000 1.84755609 3.74% $622,574 $ 1,150.24 $ 36.84 $223.87 24.17% 2.69% / 2024 $ 11,665,072,030 $21,641,884 1.85527217 13.66% $600,127 $ 1,113.40 $22.36 / / I 2023 $ 10,262,855,817 $21,207,174 2.06640089 16.78% $527,988 $ 1,091.03 $ 31.19 1 2022 $ 8,788,218,938 $20,600,919 2.34415181 10.73% $452,123 $ 1,059.84 $25.36 j , 2021 $ 7,936,363,031 $20,107,990 2.53365296 7.15% $408,298 $ 1,034.49 $ 15.89 / 1/ /' / / 2020 $ 7,406,439,444 $ 19,799,077 2.67322473 7.32% $381,035 $ 1,018.59 $ 19.60 ,' ,' / / / / 2019 $ 6,901,338,691 $ 19,418,144 2.81367784 10.58% $355,050 $ 999.00 $ 37.62 i'/ i i 2018 $ 6,241,111,833 $ 18,686,841 2.99415254 4.75% $321,083 $ 961.37 $ 16.40 �' i / / 2017 $ 5,957,828,341 $ 18,367,991 3.08300108 2.17% $306,509 $ 944.97 $ 18.60 .'.' 2016 $ 5,831,302,790 $ 18,006,396 3.08788553 $300,000 $ 926.37 . Note: Information from County Assessor Tax Booklets .' �' . 336