The URL can be used to link to this page

Home My WebLink About11/13/1990 Adjourned Meeting 1 • 179 NOVEMBER•13, 1990 '' A ADJOURNED MEETING • ' CITY OF YAKIMA, WASHINGTON The City Council met in session on this date at'7:30 A.M. in Room 421 at the Yakima County Courthouse for a meeting with the County Commissioners. Cityl Council members present- 'were 'Mayor Pat Berndt, Clarence Barnett, Henry Beauchamp, George Pechtel, Skip Semon and Bernard Sims. Council member Lynn Buchanan absent due to other City .business.. City staff members present were City Manager Zais, Director of Finance and Budget Hanson and City Clerk Roberts. ' County Commissioners jpresent were Graham Tollefson, Alex D and Chuck Klarich. • County staff members present were Dick Anderwald, Dan Hesse, and Dema Harris: ' 1. MEETING WITH THE YAKIMA COUNTY COMMISSIONERS ON CITY /COUNTY BUDGETS - Material on each entity's budget was distributed. Commissioner Klarich reviewed the County's Current Expense Budget for 1990 • totaling $23,712,709. The revenue for this budget consists of sales tax, property tax, intergovernmental, fines & forfeits, charges for services, investment interest, licenses & permits, other taxes, fund balance, and miscellaneous. The expenditures from this fund include unincorporated County services, County -wide services, law & justice, and miscellaneous. He reported that law • and justice expenditures absorb 70.8% of the 'budget for Current Expense. He responded to City Manager Zais's questions . regarding • receipt of sales tax, commenting the'County is estimating receipt Of $150,000- $200,000 in excess - ofbudgeted revenue: 'He further commented that sales tax equalization is under the Intergovernmental - budget. Mr. Zais stated that the City's sales tax is about 35% of the budget and is about 7% above last year's level. Mr. Klarich reported about 6% of the Current Expense Budget is -set aside in reserve because the sales tax in • Yakima County - fluctuates. • City Manager Zais stated the City maintains a cash flow reserve within the General Fund, which is about 3 -4% of the General Fund budget,.or about $1 Million. The City's General Fund is about $23 Million. Mr.' Klarich then reviewed'the- County Road Fund, stating that the major sources of'revenue are the 'road levy (property tax), motor vehicle fuel'tax, grants,- and federal forest tax. The'budget for the Road Fund is $13,387,010 and all funds are allocated towards projects'. Referring - to the budget for Special Revenue -Human Services Mr. Klarich outlined the programs and individual budgets, consisting of Community Services, Area Agency on Aging, Retired Senior Volunteer .Program, Employment and "Training and Drug Assessment &Referral. He said that this is mostly State and Federal money, however, the County does have to come up with some" matching funds. $2,416;459 p is' budgeted for Special - "Revenue Funds -All Others, including .District Court Probation, Ki =Yak, Parks & Recreation, " - SunDome Operation, Work Release, DARE Program, Soldiers & Sailors Fund, Treasury Revolving Fund, Motel /Hotel Tax, and Miscellaneous. 'About $1.`1 Million from Curre Expense goes into these programs.` Commissioner Deccio commented that they anticipated it would take five years to reach the • break Oven' point for , "the 'SunDome and 'it appears• that will happen in the' second' year. The 1/4%' real - 'estate fund brings in -1- 1 8 V ADJOURNED MEETING $225,000 on an average-t year•for ;the County for the SunDome debt service and road projects:. The :'reserve amount is about $900,000, which could be eliminated ,byithe four -five projects contemplated for the County. City Manager Zais reported the City receives about $200,000 a year and it's virtually fully obligated for debt service for. State andrFederal projects for the SunDome. The City has about a $122,000 cash balance. Mr. Klarich quickly reviewed the Debt Service & Capital Project . Funds - ($8,485,301) and. Enterprise & Internal Service ($11,846,714) charts. The comparison for risk management fund and the self - insured funds were= made and discussion, occurred regarding the LEOFF I medical costs. --information was provided on the County's preliminary 1991 budget and Council was. informed that there isn't any discretionary money available. City Manager Zais reviewed the handout on the City's 1991 preliminary budget of $69.4 Million, with about $17 million budgeted for capital improvements. He stated that the County's Current Expense Fund is the 'same as the City's General Fund. Responding'to Commissioner Klarich's question, Mr. Zais stated that property tax revenue supports - the General Fund,. Parks Fund, Library,' and Street Fund, plus Fire LEOFF I pension obligations (Police LEOFF I pension budgeted in the General Fund). Council member Barnett "pointed out the breakdown .of property tax is provided on page #10. Mr. Zais further responded that the sales tax is allocated to the General Fund, except for the 0.3% transit tax which'is dedicated to the Transit Fund. Mr. Hanson_ commented that the City's General Fund is composed of about 15 divisions. City Manager Zais referred to page #4, which is a statement of major budget policy issues for this year. The one that. involves the City and County is the Metropolitan Plan. The break out of property tax on page #10 shows total allocation and, how it's distributed, and how the mandated cost for Police and Fire pension and medical costs consume nearly 26 % of the General Fund,Budget. He stated funding of LEOFF I medical costs should be a legislative priority. He stated that 80% of the increase of sales tax went toward this • cost. , Page #15 shows the General Government resources; .sales tax is dominant and ,property tax is about 18% of the total revenue. The in -lieu of tax is a utility tax on private utilities in the City. Commissioner Klarich questioned if the amount of -fines and -forfeitures received, by the City •covers. the costs for District Court. Mr. Hanson stated that the fines and forfeitures will be - about equal to the costs - for District Court and City Legal. City Manager Zais referred to page' #24 and' outlined the fixed, mandated or contractual costs. : #37 is a' distribution of the City's Enterprise Funds. The City Manager, and Finance Director responded - -':to the Commissioner's questions regarding the tourist promotion ,budget, use of property .tax and bond and indebtedness capacity. ' (Council member Semon absent after 8:53 A.M.) City Manager Zais reported r they Capitol Theatre •- Reserve -Fund consists - of money received from the,Finsurance settlement from the Capitol Theatre fire, and , is now about $1:4 million. This has, been used as a `revolving fund to meet -needs and ,refurbish the Capitol Theatre. The:Capitol Theatre is using about $70,000 a year of the interest earnings \from. that fund to pay for their capital improvement needs. -They have requested an additional $35,000 a.year for. maintenance arid „Operation.' The balance of.the Federal Revenue Sharing Fund is -2- NOVEMBER 13, 1990 1 8 1 ADJOURNED MEETING going to be used'ifor'the'Met`ro Plan:: Council member Sims explained page #50, allocation 'of charges. Almost 71% of the City's budget goes :to -law and'justice. When this is averaged out to a typical household, the average citizen making $24,000 per year per household, with a $65,000 home, would pay the City about $270 a year, - including utilities. , The next' meeting is scheduled for 7:30 A.M..on November 20th at the Courthouse to discuss law and justice issues. .The meeting adjourned at the hour of 9:10 A.M. . READ AND CERTIFIED ACCURATE BY: + 1S4 `'IL MEMBER DATE taUNCTL MEMBER DATE ATTEST: 44% CITY CLERK MAYOR • • • • • -3-