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Home My WebLink About2017-035 Budget Amendment and AppropriationsAN ORDINANCE ORDINANCE NO. 2017-035 amending the 2017 budget for the City of Yakima; and making appropriations from Unappropriated Fund Balances within various funds for expenditure during 2017 for various purposes described in the attached Schedules. WHEREAS, the various funds indicated on the attached Schedule I and Schedule II contain Unappropriated Fund Balances available for appropriation and expenditures during 2017 in various amounts and for the purposes mentioned in the attached Schedules, and WHEREAS, at the time of the adoption of the 2017 budget it could not reasonably have been foreseen that the appropriation provided for by this ordinance would be required; and the City Council declares that an emergency exists of the type contemplated by RCW 35.33.091 and that it is in the best interests of the City to make the appropriation herein provided, now, therefore, BE IT ORDAINED BY THE CITY OF YAKIMA: Section 1. Appropriations are hereby made, for expenditure during 2017, from Unappropriated Fund Balances in the various Funds to the various accounts and in the various amounts, and for the various specific purposes, all as specified in Schedule I and Schedule II attached hereto and incorporated herein. Section 2. This ordinance is one making an appropriation and shall take effect immediately upon its passage, approval and publication as provided by law and by the City Charter. PASSED BY THE CITY COUNCIL, signed and approved this 12th day of December, 2017 ATTEST: • • Sonya Clar ee, City Clerk '•\) First Reading: December 5, 2017, •� `t\,� Publication Date: December 15, Effective Date: December 12, 2017 City of Yakima 2017 Appropriation Schedule SCHEDULE I - Year End Estimate adjustments to 2017 Budget Appropriation Appropriate out of unappropriated fund balances of the various funds and in the various amounts and for the purposes as described: ACCOUNT AMOUNT FUND TOTAL DESCRIPTION GENERAL FUND 001 2244196 City Hall Facility Maint $ 12,050 001 3194196 Police Administration 126,170 001 3294196 Fire Administration 46,780 Total Expenditures $ 185,000 Revenue 001 8951602 001 8951605 Total Revenues Net Use of Fund Balance STREETS & TRAFFIC ENG FUND 141 4326300 Total Expenditures Revenue 141 8959101 Total Revenues Net Use of Fund Balance EMERGENCY SERVICES 150 3270055 Total Expenditures Net Use of Fund Balance PUBLIC SAFETY COMMUNICATIONS 151 3432310 151 3434196 154 3411200 154 3414300 Total Expenditures Revenue 154 8953834 Total Revenues Net Use of Fund Balance POLICE GRANTS 152 3091200 Total Expenditures Revenue 152 8956903 Total Revenue Net Use of Fund Balance TROLLEY 162 2064800 Total Expenditures Revenue 162 8953459 Total Revenue Net Use of Fund Balance 177,500 7,500 861,000 185,000 861,000 Mid -year insurance assessment Electric Utility Tax Gas Utility Tax LED Lighting Project 861,000 Additional Bond Proceeds and rebates - LED Project 861,000 8,600 Dispatch services charged for additional call volume 8,600 8,600 6,600 Mid year insurance assessment 7,400 Mid year insurance assessment 53,500 Overtime incurred due to unfilled positions 4,600 Transportation 72,100 72,100 65,000 Taskforse and Emphasis Overtime 65,000 65,000 Confiscated property 65,000 28,000 Restoration costs 28,000 28,000 Washington State Heritage Grant 28,000 72,100 Schedule 1 Dispatch services revenue City of Yakima 2017 Appropriation Schedule SCHEDULE I - Year End Estimate adjustments to 2017 Budget Appropriation Appropriate out of unappropriated fund balances of the various funds and in the various amounts and for the purposes as described: ACCOUNT AMOUNT FUND TOTAL DESCRIPTION CAPITOL THEATRE 171 2714196 Total Expenditures Net Use of Fund Balance REFUSE 471 4794196 Total Expenditures Net Use of Fund Balance UNEMPLOYMENT FUND 512 1820055 Total Expenditures Net Use of Fund Balance WORKERS COMPENSATION FUND 514 1782320 Total Expenditures Revenue 514 8950050 514 8956651 Total Revenue Net Use of Fund Balance HEALTH FUND 513 1742560 Total Expenditures Revenue 513 8956649 Total Revenue Net Use of Fund Balance 8,400 31,500 8,400 8,400 31,500 31,500 Mid year insurance assessment Mid year insurance assessment 400,000 Transfer to Workers Compensation Fund 400,000 400,000 825,000 Large multi-year claim reverted to City (former firefighter claim) 825,000 400,000 425,000 825,000 Transfer from Unemployment Fund Additional intemal assessment 900,000 Unprecedented large claim activity net of stoploss reimbursement 900,000 450,000 Year-end assessment of medical budgeted in vacant positions 450,000 450,000 Schedule I City of Yakima 2017 Appropriation Schedule SCHEDULE II - Additional Appropriations for Fire Capital, Health and Risk Management Fund Reserves Appropriate out of unappropriated fund balances of the various funds and in the various amounts and for the purposes as described: ACCOUNT MAXIMUM MAXIMUM AMOUNT TRANSFER DESCRIPTION Fund 001 6010055 General Fund 150 3222510 Emergency Services 151 3442510 Public Safety Comm 911 154 3412510 Public Safety Comm 153 3402510 Comm Dispatch CJ .3 471 4722510 Refuse Total Expenditures $ 302,310 7,881 11,629 9,294 1,491 11,067 Year-end Health Fund Reserve maximum assessment Mid -year insurance assessment $ 343,672 Maximum Additional Transfer to Health Fund Reserve Fund 001 6010055 General Fund $ 228,336 150 3274196 Emergency Services 9,112 151 3434196 Public Safety Comm 911 10,340 170 2784196 Convention Center 10,163 171 2714196 Capitol Theatre 11,743 421 2864196 Airport 20,492 471 4794196 Refuse 45,288 Total Expenditures $ Fund 001 6010055 General Fund Total Expenditures Revenue General Fund revenue Various Funds Total Revenue Net Use of Fund Balance $ 1,000,000 1,530,645 148,500 Year-end Risk Management Fund maximum assessment 335,473 Maximum Additional Transfer to Risk Management Reserve Fire Capital Fund Balance - potential restoration $ 1,000,000 Maximum Additional Transfer to Fire Capital Fund 1,679,145 Schedule II Net revenue over Year End Estimate if realized Excess Revenue (or Fund Balance) as available Fund balance in non -general government funds may be used if excess is available BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. 6.G. For Meeting of: December 12, 2017 ITEM TITLE: Ordinance amending the 2017 Budget and making appropriations from unappropriated balances for expenditure during 2017 (Second Reading) SUBMITTED BY: Tara Lewis, Financial Services Manager SUMMARY EXPLANATION: Year End Estimate Appropriation to the 2017 Amended Budget (Schedule I) The development of the 2018 Preliminary Budget required an analysis of the 2017 revenue and expenditure estimates. Several instances were noted where additional appropriation is warranted to cover the year end estimated expenditures as presented. There is some additional revenue to support these additional General Government expenditures either in program revenues, transfers or grants. It is anticipated that any impact on the estimated year end General Government reserves as a result of this appropriation will be insignificant. Non -General Government funds impacted either have sufficient revenues or fund balances over required minimums to cover the impact of this appropriation. These expenditures and the associated revenues were included in the Year End Estimated data presented during the Council Budget Presentations in mid-October. Appropriations are requested to bring the 2017 Amended Budget into alignment with the Year End Estimated expenditures presented at the Council Budget Presentations as follows: General Fund Streets and Traffic Fund Emergency Fund Suncom Dispatch & 911 xrrttrrrrttrrrrttrrrrttrrrrwnmrrwnmrrwnmrrwnmrr =Police Grants Mid -year insurance assessment funded by utility tax revenues realized above current budget level. LED Street Light Project cost is above the original expected amount and is funded by additional revenue from rebates and bond proceeds. Mid -year insurance assessment from fund balance. Mid -year insurance assessment funded primarily by excess dispatch revenues. rrrttrrrrttrrrrttrrrrttrrrrwnmrrwnmrrwnmrrwnmrrwnmrrwnmrrwnmrrwnmrrwnmrrwttrrrrttrrrrttrrrrttr iTaskforce costs funded by confiscated property Grant expenditures and associated revenue.; $ 185,000 861,000 8,600 ................................ 72,100 65,000 Trolley Capitol Theatre Refuse Fund Unemployment Fund Workers Compensation Health Fund Grant was obtained after the 2017 Budget was; completed. wmmywmmywmmywmmywmmmwmmmwmmmwmmmwmmmwmmmwmmmwmmmwmmm ywmmyw mmy� Mid -year insurance assessment from fund; balance. Mid -year insurance assessment from fund; balance. Transfer of excess fund balance to Workers: Compensation Fund wmmywmmywmmywmmywmmmwmmmwmmmwmmmwmmmwmmmwmmmwmmmwmmmwmmmywmmyw mmy� Large claims that were unknown at the time ofythe 2017 Budget preparation. Assessed revenues and transfer from Unemployment Fund offset this expenditure. Unusual large claim experience during the year.: Partially covered by stop loss insurance; recoveries (approximately 30%). Fund Balance was used to cover these expenditures and will; need to be replenished by additional: assessments when possible. 28,000 8,400 31,500 400,000 825,000 900,000 2 Schedule I (attached) appropriates the above items to the 2017 budget, which increases authorized expenditures Citywide by as much as $3,384,600, while the revenue budget will increase by $2,486,100, with a net use of non -general government available fund balances of $898,500. These appropriations represent necessary adjustments to the 2017 Amended Budget to bring it into alignment with the year-end estimates that were presented to Council in the recent study sessions on the 2018 Budget. This appropriation serves to amend the budget to cover the expenditures presented that were unforeseen at the time the 2017 Budget was prepared and Tater adjusted in April 2017. Fire Capital, Benefit and Insurance Reserves (Schedule II) The Fire Capital fund was originally budgeted to borrow $2 million in 2017 to finance two new fire apparatus, other equipment and improvements including a storage building. Due to constraints of external financing the decision was made to postpone any potential external borrowing during 2017. As such, the Fire Capital fund borrowed $1.1 million from the Vehicle Replacement Reserve to fund the two fire apparatus and held off other capital expenditures. The fund balance is currently in a negative position since no bond proceeds were received. (Accounting regulations do not allow the recording of bond proceeds revenue when borrowing money internally, thus the borrowing fund's fund balance goes down by the amount of the expenditure. When borrowing is done externally, bond proceeds revenue offsets the capital expenditure amount and the net impact to the fund balance is initially zero. This effectively spreads the principal and interest payment expenditures over the life of the external borrowing by the repayment schedule. With internal borrowing the entire expenditure is recognized immediately and only interest paid is recorded in future periods as the loan is repaid.) Additional appropriation is being requested to cover any potential amount that the General Fund can transfer into the Fire Capital fund to restore the fund balance used to finance the fire apparatus. Generally, the Fire Capital fund is wholly supported by the General Fund. However, most such transfers to capital funds have been minimal in recent years to aid in rebuilding the General Fund reserve. Accordingly, no transfer will be made unless revenues exceed the Year-end Estimate presented during the Council Budget 3 study sessions. As previously reported and discussed in the mid -year financial report, neither the Risk Management Fund nor the Health Benefit Fund had adequate reserves to meet state requirements at the end of 2016. The General Fund budget did not have sufficient appropriation to transfer additional funding in 2016 and reserve adjustments for these funds were not included in the development of the 2017 budget. Modest increases in assessments to all City departments and divisions that are serviced by these funds have been included in the 2018 Preliminary Budget to avoid future use of reserves and the exacerbation of this underfunded status. However, to rebuild reserves to state -required levels it is necessary to do supplemental transfers if possible. These Schedule I I transfers will be completed only to the extent of available resources within the paying funds. As the exact amount of available resources will not be determined until the accounting records are closed after December 31, 2017, the appropriation being requested is set at an amount that is most likely larger than will be actually expended. Due to resource constraints it is unlikely that the full appropriation will be used, but since there will be no further opportunity to increase the appropriation, the highest possible amount is now being requested. In other words, if a given fund does not realize sufficient revenues and if that same fund does not have adequate reserves to cover its allocation of this appropriation in full, the transfer amount (actual expenditure) will be limited to the excess revenues and excess fund balances available. General Government reserves will not be used to fund these appropriations. As such the reserve balance will not fall below the Year-end Estimated reserve balance presented at the Budget study sessions due to these Schedule I I appropriations. Appropriations for year-end assessment for transfer to Fire Capital, Health and Risk Management Funds to be paid from potential excess revenues &/or available fund balances are requested as follows: General Fund ; $ 1,530,645 ;Other Funds 148,499 The attached appropriation adds these potential items to the 2017 budget, which increases authorized expenditures Citywide by as much as $1,679,145. These appropriations are in addition to the year-end estimates that have been presented to Council in various study sessions. This appropriation serves to amend the budget to allow the expenditures presented to the extent of excess current revenues in General Fund and excess revenues or fund balances in other funds to make the additional transfers to rebuild fund balance reserves as listed in Schedule I I. ITEM BUDGETED: NA STRATEGIC PRIORITY: Public Trust and Accountability APPROVED FOR SUBMITTAL: City Manager STAFF RECOMMENDATION: Pass ordinance. BOARD/COMMITTEE RECOMMENDATION: ATTACHMENTS: Description Upload Date D 2017 Budget Amendment Ordinance 11/20/2017 D Appropriation Schedule I and II 11/20/2017 Type Ordinance Exhibit 4