Loading...
HomeMy WebLinkAbout07/21/2020 05 2nd Quarter 2020 Financial ReportBUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEM ENT 1 Item No. 5. For Meeting of: July 21, 2020 ITEM TITLE: 2020 2nd Quarter Financial Report SUBMITTED BY: Steve Groom, Director of Finance and Budget SUMMARY EXPLANATION: Staff will present a summary and analysis on the economic impact of the COVI D-19 emergency on the City's current budget. There are important questions that affect level of services to be answered, concerns to be addressed, and course -correction strategies to be communicated to citizens. The Second Quarter Financial Report for 2020 is attached and consists of the following: 1. Summary Narrative 2. Financial Reports • Cash Balance Trend • Material Revenue Performance Charts • Fund Balance Summary • Revenue and Expenditure Comparison to Budget and Actual Year -to -Date • General Government Revenue Historical Year -to -Date Detail • General Government Expenditure Historical Year -to -Date Detail • Other Funds - Revenue, Expenditure and Fund Balance Summary ITEM BUDGETED: NA STRATEGIC PRIORITY: Public Trust and Accountability APPROVED FOR SUBMITTAL BY THE CITY MANAGER RECOMMENDATION: Review only. Submitted for routine transparency and accountability. ATTACHMENTS: Description O Q2 Finanicial Report • Council presentation Upload Date 7/14/2020 7/14/2020 Type Executive Summary Presentation 2 To: FINANCE DEPARTMENT Mayor and City Council Alex Meyerhoff, Interim City Manager From: Steve Groom, Finance Department Kathy Miles, Financial Services Date: July 21, 2020 Subject: 2020 2nd Quarter Financial Update This financial update is an unaudited report for the 2nd quarter ended June 31, 2020, one half, or 50% of the year, intended to inform and assist governance decisions for future planning. In total, city revenues are at 47.4% of budget and expenditures are at 40.4% of budget. The timing of Property Tax Revenue, coming in, and the timing of Capital Fund Expenditures, going out, are normally the biggest reason that revenues and expenditures are below 50% at this point in the year. This year, the economic impact of the COVID-19 has had some impact on Sales Tax, as will be discussed further below. Cash position and revenue charts on the follow ng pages provide insight into the monitoring of revenue and the management of expenses. The Quarterly Treasury report, a separate report also available on the City's website, provides further cash and investment analysis. All invoices are not yet received and complete accrual analysis is done at year-end, not quarterly, so this report is intended as a progress report. General Fund's Performance to Budget General Fund Revenues in total are at 46.1%; the largest components are: • Property Tax is at 54.3%. • Sales Tax is at 46.5%. • Utility and Franchise Taxes are at 46.7%. General Fund Expenditures in total are at 44.0%; the largest components are: • Police expenditures are at 43.6%. • Fire Expenditures are at 47.0%. Information Technology expenditures are at 44.0%. REVENUE FORECAST The City Council's current top strategic objective is improving the General Fund's fund balance. To accomplish that goal, the City is monitoring revenues and managing expenses. Due to the economic effects of COVID-19, Cash & Investments As a current over-all indicator, the 4-vear historic city-wide cash and investments balance trends, inclusive of all funds, shows June at $96.8 million. Each month is best compared to the same month in previous years to account for seasonality and other annual events. $100,000,000 - $75,000,000 $50,000,000 $25,000,000 • $0 CASH AND INVESTMENTS HISTORY \ \1, •\#)5.). \ r*Nr \ \ n 5\ p A 1\ 5\ Sales Tax This is the largest single funding source for the city. The 2nd quarter cumulative $14.0 million falls short of budget by S239,000 and is less than prior year by 5'171,000. Sales Tax allocatable to the General Fund falls short of budget by about 5144,000. The city receives sales tax from the State on a 2 -month lag from the actual point-of-sale transactions so these figures are for sales transactions through April. $40,000,000 $3Q000,000 $20,000,000 $10,000,000 •• SALES TAX REVENUE Feb Mar Apr May Jun Jul Aug Sep Oct Nov Budget Cumulative —0— Current Year Cumulative Prior Year Cumulative Dec Finance Quarterly Report - Page 2 4 Property Tax The 2nd quarter cumulative revenue, still awaiting June actual, is roughly on track with budget. The October payment activity will reveal any delays clue to COVID however Property Tax is expected to be ultimately collectable. The 2020 budget increased by S3 million due to assessed valuations; preliminary receipts are slightly favorable to budget however the first primary installments are paid in April. $30,000,000 PROPERTY TAX REVENUE $20,000,000 $10,000,000 $0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Budget Cumulative Current Year Cumulative Prior Year Cumulative Water The 2nd quarter cumulative revenue of $4.4 million through June is up $105,000 over budget and $353,000 over prior year. $15,000,000 - $10,000,000 — $5,000,000 $0 - WATER REVENUE Jan Feb Mar Apr May Jun Budget Cumulative Current Year Cumulative Finance Quarterly Report - Page 3 Aug Sep Oct Nov Dec Prior Year Cumulative 5 Refuse The 2nd quarter cumulative revenue of $3.1 million is up $104,000 over budget and $4,000 over prior year. $7,500,000 $5,000,000 -4 $2,500,000 -4 REFUSE REVENUE Oct Nov Budget Cumulative —a— Current Year Cumulative Prior Year Cumulative Dec Lodging Tax The 2nd quarter cumulative revenue of $460,000 is down $156,000 under budget and down $167,000 over prior year. In the coming months we expect to see a material decrease due to the COVID-19 Emergency, with an expected variance from budget by ($800,000). Expenses are being managed to compensate. LODGING FAX REVENUE Budget Cumulative —a— Current Year Cumulative Prior Year Cumulative Finance Quarterly Report - Page 4 6 Airport The 2nd quarter cumulative revenue of $609,000 is down $140,000 under budget and down $107,000 under prior year. In the coming months we expect to see a material decrease due to the COVID-19 Emergenc.y. This measure includes all airport revenues whic.h include airline landing fees, commercial rents, parking lot revenue, car rental and general aviation. $2,000,000 — $1,500,000 $1,000,000 -1 $500,000 $0 Jan AIRPORT REVENUE Feb Mar Apr May Jun Jud Aug Sep Oct Nov Budget Cumulative Current Year Cumulative Prior Year Cumulative Dec Building Permits The lst quarter cumulative revenues of $313,000 are down $296,000 below budget and $207,000 below prior year. This revenue was one of the first indicators of the COVID-19 Emergency's impact. $1,500,000 $1,000,000 $500,000 $0 BUILDING PERMIT REVENUE Jan Feb Mar Budget Cumulative May Jun Jul Aug Sep Oct Nov Dec Current Year Cumulative Prior Year Cumulative Finance Quarterly Report - Page 5 CITY-WIDE FUND BALANCE SUMMARY CHANGE IN FUND BALANCE General Fund Parks and Recreation Street & Traffic Operations General Governrnent Subtotal Other Governmental Operating Funds Government Capital Funds Enterprise Operating Funds 1 eternal Sery ie Funds Employee Benefit Reserve Risk Management Reserves Debt Service & Agency Funds Total 21)20 li eginning Ba lancer As of June 30th 2020 2021) Finding Act ue l Rev. Actual Exp. Balance 10,757,521 $ 32,685,225 5 30,973,234 $ 12.469512 666,337 2.423,750 2,039,046 1,051,041 179,146 3,144,120 4,395,650 (1,077,384) 11,603,004 38,253,095 37,407,930 17,448,169 5,708,398 13,888,067 16,706,959 45,146,084 5,691,277 1,689,574 2,311,736 3,954,278 6,139.553 15,422990 27,337,676 3,596,001 2,458,861 6,048,778 2,522690 11,707.005 5,924,385 5,182,999 77,180,553 3,113,832 :3,141,396 7,125,219 7463,078 11,058,384 5;923;566 24,128,058 16,859,082 45,628,253 5,008,737 613,133 2,371,348 1,607899 106,699, 372 $ 113,481,649 $ 102 97,776 $ 117,583,245 This table shows fund balances by fund at this point in time, however due to seasonal fluctuations such as Property Tax revenues that come in twice a year, and dept payments made periodically, as well as other seasonal factors, this is intended to provide transparency and accountability but it not a reliable measure of predicted year-end. Finance Quarterly Report -Page 6 CITY WIDE REVENUES & EXPENDITURES BY HIND GROUPING General Parks and Recreation Street & Traffic Operations General Government Subtotal Other Government Operating Government Capital Funds Enterprise Operating Funds Enterprise Capital Funds internal Service Punds Employee Benefit Reserves Risk Management Reserve Debt Service & Agency Funds f4otal Parks ay St reset & Traffic 1.11prations General Government Subtotal REVENUE COMPARISON (Budget vs. Actual) 2019 2020 Annual Actual '% Amended Actual % as of 6/30 Recd Budget as of 6/30 Recd 33,566,134 497 % S 70,914,893 $ 32,685,225 46.1 % 2,621.,97 49.8 % 5,531,468 2,423,750 43.8 2,816,498 48.7 % 8,661,450 3,144,120 36.3 % 39,004,569 49.7 % R5,107,811 38,253,095 44.9 % Funds 5,688,127 33.5 % 17,528,073 6,139553 35.0 % 3,614,906 8.5 27,283,760 15,422,990 56.5 % 27,283,958 45.1. % 61,170,191 27,3:2,676 44.7 % 4,023,006 20.2 % 13,009,100 3,596,001 27.6 % 2,895 7.566 46.9 % 6,178,1.39 2,458,861. 39.8 % 7,550,315 46.1 % 16,180,664 6,018,778 36.7 % 2,127,062 48.9 % 5,037,870 2,522,690 50.1 % 3,598,288 47.8 % 7,809,554 11,707,005 149.9 % 95,785,857 37.9 % $ 239,605,162 $ 113,481,649 47.4 % EXPENDITURE COMPARISON (Budget vs. Actual) Other Government Operating Funds Government Capital Funds ';unds ase Internal Service Funds Employee Benefit Reserves Risk Management Reserve [)elrt Serve. & .gency Funds '1nta1 2019 202(1 Actual as of 6/30 9u Exp'd Annual Amended Budget Actual as of 6/30 Exp'd $ 32,089,646 2,259,925 2,949,693 37,299,264 472% S 43.,1 38.5 % 46.2 % 70462,197 5,597566 8,694,368 $ 30,973,234 2,0 19,046 4,395,650 84,749,131 37,407,930 6,656,304 38.9 % 17,327,025 5,924,385 7,163,842 15.6 % 26,368,058 5,187,999 27254258 43.8 % 62,728,945 27,180,553 3,511,123 12.8 % 25,268,771. 3,11.3,8 i2 2,531,455 26.2 % 8,191,705 3,111,396 6,869,412 42.6 % 16,242,793 7,125,219 2,666,456 62.0 % 5,047,122 2,463,078 3,346,627 445 % 7,802,697 11,058,384 $ 97,798,741. 35.9 % $ 753,776,037 $ 107,597,776 Finance Quarterlepart-Page 7 14.0 % .36.5 % 50.6 % 41.1 % 34.2 % 19.7 % 43.3 12.3 % 38.3 % 43.9 % 48.8 % 141.7 % 40.4 % 9 GENERAL GOVERNMENT REVENUE DETAIL GENERAL GOVERNMENT REVENUES Genera l Fund 2020 Revennes as of June 30 Amended Percent 2018 2019 2020 Budget Rec d Property Tax S 7,178,554 $ 6,162,061 4w 5.,762,278 $ 10,606,500 54.3 % General Sales Tax 8,413,207 8,582,881 8,633,825 18,552,000 46.5 % ustice Sales Tax 1,748,032 1,689,479 1,720,133 3,704,701 46.4 se ]"axes 8,557,772 8,784,270 8,944,782 19,141,920 46.7 % Other Taxes 537,673 538,975 472,789 1,080,000 43.8 % d Permits 1,01.4,750 1,115,461 879,624 1,905,970 46.2 % Intergov't Revenues 2,056,589 4916,205 1,751,118 4,723,942 37.1 % Charges for Services 4,223,025 3,555,932 3,535,304 7,884311 44.9 0/0 Fines and Forfeitures 932,600 839,074 517,314 4812,000 28.5 % Other Revenue 237,457 381,841 468,057 1,506,550 31.1 atal. General Fund 34,894,604 33,566,137 37,685,224 70,914,894 46.1 .93 Parks Sz Recreation Property Tax 1,541/101 1,412,195 1,518,708 2826,147 53.7 % Intergov't Revenues 52,328 23,798 36,787 69,330 53.1 % Charges for St rvices 510,722 450,959 167,81.0 975,250 16.7 % Other Revenue 617,826 734,985 705,445 1,660,740 42.5 % 'Iotal Parks & Recreation 4722,277 2,621,937 2,423,750 5531,467 43.8 % Streets Property Tax 1,715 537 4724843 302,826 2,158,277 14.0 % Other Taxes 2,582 _ _ _.._ n/a I ntergov t Revenues 754,764 717,016 359,160 644,085 55.8 % Charges for Sery ices 4,150 321,346 850 251,100 0.3% Other Revenue 13,948 61,293 10,942 90,659 12.1 % Total Streets 2190481 2816,498 673,778 3,144,121 21.4% 1 General Government 5 40,107, 362 567 $ 35,782,.752 $ 79,590,482 45.0 % Finance Quarterly Report -Page 8 10 GENERAL GOVERNMENT EXPENDITURE DETAIL GENERAL GOVERNMENT EXPENDITURES Expenditures as of Jun 2020 Ani ended 1'ercent 2018 2019 21)20 Budget Exp'd Police 5 14,719,266 $ 14,033,521 $ 13,410,476 $ 30,773,407 43.6 % Fire 6,870,171 2530,446 7,268,884 15;182,039 47.0 % Information Technology 1,773,458 1,686,325 1,834,912 4,166,039 44.0% 928,453 966,817 886,557 1,986„531. 44.6 % 811,792 886,055 928,930 1,980,706 46.9 765,690 769,406 849,177 1,906,304 44.5 2,261,197 4180,368 832,308 1,879,760 44.3 766,571 779,416 766,444 1,733,999 43.0 611,537 658,542 680,066 1,176,041 578 419,426 524,724 537,342 1,050,000 51.2 450,848 416,647 394,504 867,197 45.5 % 345,714 :354,346 307,095 801,153 38.3 227,490 226,977 296,409 779,047 38.0 343,376 386,842 370,893 770,739 48.1 306,716 343,243 383,676 328,262 46.9 295,713 304,951. 238,573 686,784 34.7 % 251,528 253,050 287,550 604,700 47.6 21.1,501 268,319 239,717 1,4 32,936 16.7 % 26,781 385,288 7.0 78,854 31453 77,194 230,137 27.6 171,081 145,550 143,710 275,790 52.1 189,840 156,449 117,164 252,548 46.4 Irit91,31.3 86,194 89,872 162,689 55.2 Contingency 500,000 - - 160,000 n/a Total General Favid 33,396,535 32,089,646 30,973,234 70,472,196 44.0 Code Administration Interfund Distributions Municipal Court Firemen's Relief/Pensio Indigent Defense Police Pension City Clerk/ Records I-Iuman Resources Planning 1'u rchas City Hall Facility City Management Clean City Program Parking City Council Parks & Recreation Fund 2,664,284 2,259,925 2,039,046 5,592,567 36.5 Street & Traffic Ops. 2,050,654 2,949,693 4,395,650 8,694,368 50.6 % Total General Government 5 38,111,473 $ 37,299,264 $ 37,407,930 $ 84,759,131 44.1 Finance Quarterly Repart- Page 9 11 OTHER FUNDS DETAIL Fund OTHER GOVERNMENT OPERATING FUNDS 2020 Beginning Be lance As of June 30th 2020 2020 Ending Actuel Rev. Actuel Exp. Balance Economic Development Neighborhood Development Community Relations emetery ncV Se ry ices Police Grants PBIA (Park/Bus Improvement Area) Trolley Front Street Bus Improvement Area Convention Center (Tou»st Promo) Capitol Theatre PFD - Convention Center Tourism Promotion Area PFD - Capitol Theatre Total I Other Gov't Operating Funds Fund 54,454 703,369 799,193 149,116 78,401 905,62:3 1,199,193 57,284 15,791 3,546 287,722 34,275 113 475 80,263 266,291 45,696 $ 602,534 326,596 146,648 854,329 1,355,090 127,145 94,057 1,275 1,760 344,299 231,323 163,321 91;186 350,992 54,523 142,542 286,238 166,784 737,524 2,046,310 148,120 50,463 2,818 3,315 764,434 232,717 433,326 177,510 377,732 45,627 863,361 839,851 179,080 195,206 1,214,403 1,178,218 100,878 44,218 1,991 (132,41.3) 32,881 1,073,470 97,239 239.551 5,708,396 $ 6,1.39,551. $ 5,924,386 $ 5,923,561. GOVERNMENTAL CAPITAL FUNDS 2020 Beginning Balance As of June 30th 2020 2020 Actual Rev. Actual Exp. Ending Balance Arterial Street Central Bus 1)istriet Capital Capitol Theatre Construction Ya lama Redevelopment Area Parks & Recreation Capital Fire Capital Law and Justice Capital Public Works Trust Construction RE. E.1 2 Capital Street Capital Convention Center Cap Improvement Reserve for Capital Improvement Total Gov't Capital Funds 2,254,826 61,038 201,017 1,566,930 395,207 504,061 729,782 3,120,163 1,601,740 2,17 8,084 713,946 561,273 247,414 8,894 30,000 1,118,085 30,178 300,249 427,342 385,118 138,773 12,736,906 817,290 $ 1,684,980 69,932 231,017 189,804 1.,377,126 1,100,570 403,722 49,479 484.760 105,106 924,625 694,940 2,852,565 662,562 1,314,196 80,168 2,236,689 1,473,780 11,972072 561,273 $ 13,888,067 $ 15,422,989 $ 5,182 21,128,057 Finance Quarterly Report- rage 10 ENTERPRISE OPERATING FUNDS Fund Airport Operating Transt4 O Refuse Wastewater Operating Water Operating Irrigation Utility Services Total I Enterprise Opeiati ng Funds Fund 12 2020 As of June 30th Beginning 2020 2020 Ending Balance Actual Rev. Actual Exp. Balance $ 263,681 $ 609,129 $ 761,969 $ 110,841 1,418,220 7,267,328 1,873,377 1,812,171. 5,269,065 :3,486,890 3,719,729 5,036,226 7,234, 1.0 3,717,491. 3,403,940 2,483,061. 4,921,597 10,924,196 10,173,5.58 5,373235 2,239,611 4,709,840 4,945,929 2,003,522 718,983 993,260 1,055,219 657,024 (361,708) 629,542 886,831 (618,997) $ 16,706,959 $ 17332676 $ 27,150,552 $ 168..59,083 ENTERPRISE CAPITAL FUNDS Airport Capital Storni eater Capital Transit Capital Wastewater Facilities Capital Wastewater Construction Capita Wastewater Capital Water Capital [ rngation Capital 1 ota I Enterprise Capital Funds Fund 2020 As of June 30th Beginning 2020 Balance Actual Rev. $ 2,999,177 $ 179,980 6,380,683 600,000 6,315,907 4,985 4,034,146 471,428 9,62 9,071 150,000 5,969,312 391,396 4,546,935 950,000 5,270,852 848,212 2020 Actual Exp. Ending Balance 139,972 790,91 9 17,004 160,365 1,110,565 61,724 716,634 616,650 $ 3,039,185 6,189,764 6,303, 888 4,345,209 8,668,506 6,298,984 5,780,301. 5,502,41.4 S 45,146,083 $ 3,596,001 $ 3,113,833 $ 45,678,751. INTERNAL SERVICE FUNDS 2020 Beginning Balance As of Jure 30111 2020 Actual Rev. 2020 Actual Uxp. Ending Balance E.y a ipment Resit al Environmental Public Works Administration Total Enterprise Operating Funds S 4,288,677 625,645 776,949 $ 1,770,493 $ 37,592 650,776 2,500,455 $ 3,558,715 88,522 574.715 552/119 875,306 5,691,271 $ 2,458,861 $ 3,141,396 $ 5,008,736 Finance Quarterly Report- rage 11 Fund EMPLOYEE BENEFIT RESERVES 2(12(I As of J une. 30th Beginning 2020 2020 Ending Balance Actual Rev. Actual Exp. Balance 13 Unemployment Comp Rxserve Lmpioyees Health Ben Reserve Worker's Comp Reserve Wellness/EAP Total Employee Benefit Reserve Fund 258,419 $ 87,149 $ 69,670 $ 27.5,898 636,576 5,256,217 6,389,357 (496,564) 750120 705,412 645,291 B10,241 41,459 20,901 23,5.58 1,689,574 $ 6,018,778 $ 7,125,219 $ 613,133 RISK MANAGEMENT RESERVE 2020 As of June 30th Beginning 2020 2020 Ending Balance Actual Rev. Actual Exp. Balance Risk Management Reserve $ 2311,736 $ 2,522,690 $ 2,463,078 $ 2,371.348 Fund DEBT SERVICE & AGENCY FUNDS 2020 As of June 30th Beginning 2020 2020 Ending Balance Actual Rev. Actual Exp. Balance GO Bond Redemption 2 s Bonds 1996 GO LTD - Convention Center LID Debt Service Control Total GO Bond Redemption 7,941,838 9 7,683,702 171,491 458 75,185 7,765,700 $ 2,859,940 338,755 (1.64,299) 246.979 458 250,041 $ 10,797,034 $ 10,625,640 $ 421,893 Water/Server Revenue Bond Redemption WW Rev Bond & 2008 Debt Service 278,351 62,531 8,981 331,898 Irrigation Bond Debt Service 127,107 79,380 57,660 149,127 W W Rev Bernd Kw IQ 2012 1)eht Svc 7,557,390 103,700 56,400 2,679,690 7ota1 WS Rev Bond Reil em ption $ 7,198,1.48 $ 245,611 $ 123,044 $ 3,110,715 Agency Funds Yakcorps Cemetery'I'rust 716,090 7,626 - 723,716 Total Agency Funds $ 716,090 $ 663,902 $ 309,699 1,070,293 656,276 305,699 346,577 Finance Quarterly Report- Page 12 2020 Budget Mid -year Progress Report Financial Results through June 30th 2nd Quarter 2020 Clear — Reliable — Trustworthy Halfway Through 2020 Questions to be Answered 1. What's going well? 2. What problems do we see? 3. How are we course -correcting? 4. What do we need to watch? 5. What Council actions needed? Clear — Reliable — Trustworthy Stated Budget Goals (Review) 1. Achieve a balanced budget in every fund 2. Assure service delivery, appropriately prioritized, within available resources 3. Achieve improvement in General Fund's fund balance Clear — Reliable — Trustworthy What We Planned (Review) 2020 ADOPTED BUDGET SUMMARY General Fund (001, 003 & 612) Parks and Recreation Street & Traffic Operations General Government Subtotal Other Governmental -berating Funds Government Capital Fluids Enterprise Operating Funds Enterprise Capital Funds Internal Service hinds Employee Benefit Reserve Risk Management Reserves Debt Service & _Agency Funds Total Estimated 2020 Beg Projected Fund Balance 2020 2020 Proposed Revenues — Expenditures c. 9247,355 .377,522 )7,841 C.; 6q,6qq,-17-1S 69,173,49b 5,531.465 5,531.465 5,661.450 8,661,450 Increase in (Decrease in) Budgeted 2020 Ending Balance 9,773,283 377,522 27,541 9,653.015 83,892,342 53,366,413 525,928 10,178,94o 5,773,992 12,2'15,036 14,235.3-13 30,60,261 1241.700 1,635,q10 1,057,623 2,476,158 14,115.357 13,345.344 13,616.426 11,9g0,2q3 61,170,N1 62,433,441 13:000.100 25,250,221 6,122344 6,453,7'15 16,450.664 16,360,119 5,037.570 5.042,916 7,500.554 7.802,612,7 )70,5-13 1,626,133 (1,263,2:30) (12,241,121) i331,454) 120,545 (3,046) 6,537 6,023,535 13,g21,76q 12,972,095 15,375,140 (110,246 1,756,455 1,L15),D77 2,433,015 $ 7'2).567,643 S 221,257.375 S 232,545,244 5 (11,2E10,565) S. L18570,773 Actuals through June 2020 Revenue and Expenditures Comparison General Fund (001, 003 & 612) Parks and Recreation Street & Traffic Operations General Government Subtotal Other Government Operating Funds Government Capital Funds Enterprise Operating Funds Enterprise Capital Funds Internal Service Funds Employee Benefit Reserves Risk Management Reserve Debt Service & Agency Funds Total Revenue Amended Budget Actual as of 6/30 Rec'd 70,914,893 5,531,468 8,661,450 32,685,225 2,423,750 3,144,120 85,107, 811 38,253,095 17,528,073 27,283,760 61,170,191 13,009,100 6,178,139 16,480,664 5,037,870 7,809,554 239 605 162 6,139,553 15,422,990 27,332,676 3,596,001 2,458,861 6,048,778 2,522,690 11,707,005 113 481 46.1% 43.8% 36.3% 44.9% 35.0% 56.5% 44.7% 27.6% 39.8% 36.7% 50.1% Expenditures Amended Actual as of % Budget 6/30 Rec'd 70,462,197 5,592,566 8,694,368 30,973,234 2,039,046 4,395,650 84,749,131 37,407,930 9 47.4% 17,327,025 26,368,088 62,728,945 25,268,221 8,191,705 16,242,798 5,047,422 7,802,697 53,726,032 5,924,385 5,182,999 27,180,553 3,113,832 3,141,396 44.0% 36.5% 50.6% 44.1% 34.2% 19.7% 43.3% 12.3% 38.3% 7,125,219 43.9% 2,463,078 48.8% 11,058,384 141.7% 102,597,776 40.4% p. 7 on quarterly report Challenges That Were Known (Review) 1. Restoring General Fund reserves We now have preliminary 2019 audit 2. Deferred Vehicle Replacements No change 3. Streets Capital — TBD Fees No change Clear — Reliable — Trustworthy Getting to 16.7% 2,3; OC:3 CC:z1 City of Yakima GenE, al Fund - Fund Balance c.1 a.C.;.; of Total ExpensEs $1.6M )0(.:ci 3010 3011 '011 2013 3014 *301s 2015 2017 30i:3 2019 2032 03 202ta est Gottol7.1%... But City of Yakima Balance as a xper ses 525 ,0/0 2009 2011 1 2017 2011 2022 2023202; "How?" and "Now What? 1. PD vacancies 2. Deferred PD replacements 3. Deferred FD repair/replacements 4. Material pension or general liability audit adjustments Audit pending completion Clear — Reliable — Trustworthy Fiscal Health of the City City Bond Rating: A+ Stable E> o "We do not expect significant improvement in the reserve position in the next three years" -S&P March 2020 o "Very weak economy" o Avg. Household Income $44,000 o Avg. Per Capita Income $22,000 o Budgetary performance "strong" o Liquidity "very strong" Clear — Reliable — Trustworthy New Revenue Information COVID Lodging Tax Revenue GF Sales Tax revenue GF Fees Airport Revenues REET YTD ($156,000) ( 144,000) ( 200,000) ( 140,000) ( 200,000) YE ($800,000) ( 300,000) ( 400,000) ( 250,000) ( 400,00 Clear Reliable — Trustworthy Sales Tax Revenue Month of June Cumulative 6 months City of Yakima - General Fund - Sales Tax City of Yakima - General Fund - Sales Tax June YT© $2,000,000 $10,000,0x)0 $1,500,000 $1,000,0©0 58,©00,000 $4,000,000 2015. 2016 2017 2018 2019 2020 2015 2016 2017 2018 2019 2020 Lodging Tax Revenue Month of June City of Yakima - Lodging Tax June Cumulative 6 months City of Yakima - Lodging Tax June YTD 5200,000 5100,000 5-,00,000 $boxq,uou 5500,000 5100,000 5300,000 5200,000 5100,000 2015 2016 2017 2018 2019 2020 6 2017 2018 2019 2020 Convention Center Debt Fund Balance has 2 years' debt service Fund Balance Budget Actual Lodging Tax Debt Payments Tourism Operations 170 287,000 2020 293,739 Debt 287 75,000 2021 TBD 312,527 Capital 370 714,000 1,076,000 606,266 Clear — Reliable — Trustworthy What's the Impact to Citizens? Lodging Tax Revenue Hotels, sports, conventions, Capitol Theatre shows, Visitors' Center GF Sales Tax revenue REET Parks programs, city-wide training, deferred hiring, deferred vehicles Street maintenance Clear — Reliable — Trustworthy Course Corrections Lodging Tax GF Sales Tax Airport REET expense cuts (2 -yrs?) A whole lot of juggling CARES Act More projects deferred Clear — Reliable — Trustworthy City Council Action Needed 1. Be informed on COVID's economic impact to City's fiscal health 2. Help publicize messaging in community 3. Information to begin prioritizing known problems for 2021 Clear — Reliable — Trustworthy Conclusions 1. General Fund's reserve is healthier 2. COVID economic impact — improving 3. Concerns: • Tourism recovery likely 2 years • Perpetual vehicle replacement vigilance • Streets project delays erodes overall condition • City's economy and reputation Clear — Reliable — Trustworthy 2020 Budget Mid -year Progress Report Questions? An increasingly well-managed city Clear — Reliable — Trustworthy