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HomeMy WebLinkAbout01/06/2026 10.D.. Distributed at the MeetingDistributed at Meeting: G0(-06, ,a0 ( Item#/OJ) 2026 Council Budget Review & Station 92 Update January 6, 2026 Presented by Vicki Baker, City Manager Craig Warner, Finance Director City Funds Ali City Funds Governental General Fund Special Revenue Capital Debt Purpose (examples): Special. Revenue - restricted externally (Streets, Convention Center) Capital -for all non-proprietary capital Debt - for all non-proprietary debt Enterprise - business -like with external customers Internal. Service - internal customers What is in the City of Yakima's G E N E RA,L FUN ©? .U``` What services are NOT in the GENERAL FUND? 2025 General Fund Revenue Sources Budget S91 ,173,634 Other $11,816,546 Licenses & Permits $1,810,750 Investment Interest/Amortization` $2,706,900 Utility Taxes $21,583,567 Property Tax $22,497,871 Sales Tax $30,758,000 ■ Sales'iaX 1P, Property iax ■ Utility Taxes • Investment Interes1/Amortizatior7 L'ocen;es& Permits d Other January , ?O26. City Coo. Police Fire Streets Information Services Parks lrant€ rs Out Municipal Court Legal Code Arlin Indigent Defense Engineering 111111111111110 Planning IMO Debt utttan Resources SIN Facilities Maintenance 111 City Management City Clerk/Records IP Finance Purchasing 0 State Audit 0 City Council 5,000,000 2026 General F nd Budget 1.5,000,000 ? .Ci O,oOO 25,000,000 30.11O0,000 35,000,000 Structural Budget Issues Structural funding problem being faced by cities and counties across Washington 1% property tax limitation creates structural gap that will ALWAYS be present Inflation affects the City too 1% Annual growth will NEVER increase enough to pay for increased costs When one -tune money is used for ongoing expenses — there are ramifications This is not an emergency — this is a long-term situation City had an $8.5M deficit in 2023, some cuts implemented Covid Funding Masked the Problem ARPA and CARES ACT Federal Funding (Covid response funds): Intended to help cities and counties weather the shutdowns 2020, 2021-2026 How did the one-tirne funds affect the city budget? Short-term windfall City has operational costs that continue to increase annually Budget issues continued 9M Budget Gap How has Council addressed it sofa Summer 2025: Council Adopted 3M Cut Package Council Priorities Cuts implemented whether evy passes or not Budget Reductions Eliminate Lobbying and Council Travel Eliminate Funding for Firoworks Reduce Windows Alive Funding Eliminate Flowers Downtown Reduce Funding to YC©A Reduce Economic Development Staff Remove Main Street Match Reduce Human Resources. Department. Reduce Financial Service Department Eliminate Trolley Maintenance F»tfmkrore Alle}r Maintenance Eliminate Funding Tor. Sidewalk Improvements Reduce Street Maintenance Funding (or Pass TBD S20) Creeto Reserve for Snow and Ice Control. Funding Reduce Tahorna Cemetery Watering Eliminate Graffiti Rernovet Program. Eliminate Day Camps Eliminate Funding for Adult Sports f:rtagtnm " Reduce Funding for Community Recrnetfon Eliminate Youth Sparta Programs Close Franklin Pool (2027 Capital Raturbl ti) Reduce Washington Fruit Company Center Reduce Herman Center Ehminote legal Dept Front Steil Eliminate 2 YPD Crime Analysts Ei6mlttata Crime Free Rental Housing Reduce Code Enforcement (Moors Reddon Lions Pool Facilities Specialist Economic Development Assistant AWC Mamtlerelep Corrections Administration Spec( Fire Electronics Technician 2028 Reduction S 120,000 s 1151188 s 18,E S •410.919 90,000 00 S '27,41 Summer 2025: S6M Levy sent to voters for Nov Ballot Two 2026 Budgets Developed by Finance Levy passes: Budget with $3M cuts, $6M Additional Revenue Levy Fails: $3M cuts implemented +$6M Additional Cuts=$9M cuts 11 Adopted Reductions ➢ P©lice: $3,000,000 ➢12 Police Officer position ➢1 Police Sergeant ➢4 Community Service Officers ➢1 Analyst Supervisor ➢1 Analyst 2 filled & 10 vacant positions 1 filled 3 filled & 1 vacant position 1 filled position 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 12 opted Reductions ➢Parks: $1,400,000 ➢Washington Fruit Community Center ➢Lions Pool ➢Harman Center ➢16©/0 Reduction in Parks Maintenance 5 Vacant, 3 Filled FTEs, & 23 Filled Part Time Positions Note: Removes the General Fund contributions for these programs 13 Adopted Reductions >Fire: $1,750,000 ➢Close Station 92, utilizing filled staff positions at other stations to reduce overtime expense > Prioritizing retention of employees 14 , 1011'1idiuuouuuuwuuwow:':, Dec 25-Council Added Back -Police $600,000 --1 ©/© Utility Tax (3-year sunset) 1 Police Sergeant 4 Community Service Officers 2 Crime Analysts $32,000 Donation Forbes Mercy Humane Society Contract 15 AT Dec 25 Added Back— Parks ➢ Parks: 470 000 Fundin from 2025 Reserve (one-time one Washington Fruit Community Center- months funding Lions Pool- 2 months funding )Harman Center -12 months funding Station 92 Operations Decisions, Constraints and Path Forward January 6, 2026 Presented by Vicki Baker, City Manager Craig Warner, Finance Director Aaron Markham, Fire Chief Budget Reality for 2026 General Fund reduction plan: Fire $1,750,000; Police $3,000,000; Parks $1,400,000. Add back ' S600,000 to Police through 3-year 1 % utility tax Add back N $470,000 one-time reserve funds to Parks for 2 months Lions Pool, 6- month Washington Fruit Center & 12-month Harman Center * Fire reduction approach adopted: "Close Station 92, utilizing filled staff positions at other stations to reduce overtime expense," prioritizing retention. Compounding factor: Loss of ^ $2,000,000 Union Gap contract revenue (historical), combined with the adopted cut - about $3.8M shortfall vs. 2025 operations. 18 Council Directives Council Action: Adopted 2026 budget (Dec 2) including Fire Dept reduction of $1,750,000 by reducing overtime IAFF Local 469 CBA (effective Jan 1, 2026-Dec 31-2027) sets apparatus staffing and overtime hiring practices Council Direction: Dec 2 motion to identify ways to keep all stations open while reducing fire budget by $1.75M Timeline Nov 4, 2025: General. Election Nov 12, 2025: First hearing of 2026 budget, includes S6M additional cuts. Nov 18, 2025: Second hearing of 2026 budget, $6M in additional cuts including Station 92 closure and reduction in overtime. Dec 2, 2025: Council motion to meet budget reduction while not closing a station. Dec 2, 2025: Council adopts via Ordinance the 2026 Budget. Dec 3-10, 2025: Workgroup on Fire Department Options met and did not have viable options Dec 11, 2025: City Manager notifies Council of Station 92 closure for 2026 to enable required scheduling and continuation of effects bargaining prior to December 15, 2025 deadline. Dec 22, 2025: City Manager decision to keep Station 92 open for the first six days of Jan 2026 using extraordinary measures to include use of overtime. 20 Why closing Was Necessary Now Budget adopted on Dec 2 requires Fire budget reductions and references Station 92 closure to curb OT—there are no alternative measures that create a savings of $1.8M that preserves all stations under current staffing. We do not have enough current employees to fully staff and keep Station 92 open without a significant amount of overtime daily, which is not in the adopted budget. Operational certainty needed to meet December 15, 2025 deadline. Nair oru imm�aidm Staffing Needs 6 Apparatus (3 per apparatus) Kelly Days coverage Vacation day coverage Sick/Leave ARFF Shift Commander x3 Shifts Available Staff (January 1, 2026) Available Staff (July 1, 2026) 18 5 Apparatus (3 per apparatus) 3 Kelly Days coverage 3 Vacation day coverage 2 Sick/Leave 1 ARFF 1 Shift Commander 84 x3 Shifts 81 Available Staff (January 1, 2026) 77 Available Staff (July 1, 2026) 3 2 1 1 75 81 77 2 Why Station 92? Reducing Station 91 to one apparatus would leave the one remaining apparatus with 39% of the calls (based on 2025 year to date). Station 92 has lowest call volume. Ten' ace Heights Near -Term Operation Options When staffing allows, operate an apparatus from Station 92. • Continue working with the IAFF to develop standards for a two - person non -suppression response unit that could be operated from Station 92 or allow shifting of other units so that a full suppression apparatus can operate from Station 92. • Stop Gap Measure — Increase overtime budget for Fire, approximately S150,000 month. Staffing levels dropping with expected retirements will increase overtime expenses after July 1. Complexity of Fire Operations • Funding instability creates issues Hiring process and training requirements Re -opening after a closure can take time Tonight's Decisions • No Decision - Budget as passed, closes Station 92. • Stop Gap Measure - Increase overtime budget for Fire, approximately $150,000 month. Staffing levels dropping with expected retirements will increase overtime expenses after July 1 • Long Term Solutions • EMS Levy - 60% voter approval • Public Safety Levy Lid Lift - 500/0 voter approval • Permanent Utility Tax increase - Council vote 5-2 and increase u • Future Study Session -- Fire District (voter approval) y rates Questions and Answers