HomeMy WebLinkAbout10/15/2013 10 2012 Comprehensive Annual Financial Report 1'
CITY OF Y ii6i ,-
WASHINGTON
2012 C ANNUAL
FINANCIAL REPORT
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CITY OF Xi/'t, LL
Washington
COMPREHENSIVE ANNUAL
FINANCIAL REPORT
For the year ended December 31, 2012
REPORT PREPARED BY:
DEPARTMENT OF FINANCE AND BUDGET
Cindy Epperson Director of Finance & Budget
Tara Lewis, CPA Financial Services Manager
Vacant Financial Services Officer
Edna Pettyjohn, CPA Accountant
Jeanne Thompson, CPA Accountant
Debbie Baldoz, CPA Accountant
Jennifer Coleman Accountant
Kathryn Miles Financial Services Technician
PRODUCTION
June Smith Print Shop Operator
CITY OF /CfLI/11L
2012 ORGANIZATIONAL CHART
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Water
Irrigation
Wastewater
Stormwater E
lith
Parks & Recreation
Streets & Traffic
Transit Services UTILITIES & Fire Suppression
Refuse & Recycling ENGINEERING Investigation
Equipment Rental DIRECTOR Training
DIRECTOR FIRE
OF CHIEF
PUBLIC WORKS
CITY MANAGER
CITIZE
/ / CITY Patrol
Prosecution / C OUNCIL Investigation
CITY CHIEF OF Special Operations
Indigent Defense ATTORNEY POLICE Detention . Parking
Legal Counsel
Strategic Planning / / Public Safety
Economic Development / / Communications
City Clerk/Records
Human Resources
Community Relations
Communications
Technology
JUDGES FINANCE
DIRECTOR
DIRECTOR OF Financial Services
COMMUNITY Treasury Services
Probation Services DEVELOPMENT Utility Services
Court Services Purchasing
Risk Management
Code
Administration
Planning
Neighborhood
Development
Animal Control
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CITY OF /U7ZCC
PRINCIPAL OFFICIALS
CITY COUNCIL
Micah Cawley Mayor, At Large, Position 6
Maureen Adkison Assistant Mayor, District 1
Sara Bristol District 2
Rick Ensey District 3
Kathy Coffey District 4
Dave Ettl At Large, Position 5
Bill Lover At Large, Position 7
CITY MANAGEMENT EXECUTIVES
Tony O'Rourke City Manager
Jeff Cutter City Attorney
Susan Woodard Municipal Court Presiding Judge
Cindy Epperson Director of Finance & Budget
Steve Osguthorpe Director of Community Development
Dave Cook Director of Utilities & Engineering
Dominic Rizzi Police Chief
Dave Willson Fire Chief
Chris Waarvick Director of Public Works
129 North Second Street
Yakima, WA 98901
(509) 575 -6000
www.ci.yakima.wa.us
CITY OF Vd( /I1it
COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR)
For the year ended December 31, 2012
TABLE OF CONTENTS
INTRODUCTORY SECTION PAGE
Letter of Transmittal i
FINANCIAL SECTION
Washington State Auditor's Opinion 1
Management's Discussion and Analysis 3
BASIC FINANCIAL STATEMENTS
Description of Basic Financial Statements 17
Statement of Net Position 18
Statements of Activities 19
Balance Sheet - Governmental Funds 20
Statement of Revenues, Expenditures, and
Changes in Fund Balance - Governmental Funds 22
Reconciliation of the Statement of Revenue, Expenditures and Changes in
Fund Balances of Governmental Funds to the Statement of Activities 24
Statement of Revenues, Expenditures, and Changes in
Fund Balances - Budget and Actual - General Fund 25
Statement of Revenues, Expenditures, and Changes in
Fund Balances - Budget and Actual - Community Development Fund 26
Description of Proprietary Funds 27
Statement of Net Position - Proprietary Funds 28
Statement of Revenues, Expenses, and Changes in
Fund Net Position - Proprietary Funds 32
Statement of Cash Flows - Proprietary Funds 34
Statement of Net Position - Fiduciary Funds 38
Statement of Changes in Net Positions - Fiduciary Funds 39
Notes to the Financial Statements 40
Required Supplementary Information
Schedule of Employer Contributions 91
Other Post Employment Benefits (OPEB) 92
NONMAJOR FUNDS
Combining Balance Sheet - Nonmajor Governmental Funds 93
Combining Statement of Revenues, Expenditures, and Changes in
Fund Balance - Nonmajor Governmental Funds 94
Description of Nonmajor Special Revenue Funds 95
Combining Balance Sheet - Nonmajor Special Revenue Funds 97
Combining Statement of Revenues, Expenditures, and Changes in
Fund Balance - Nonmajor Special Revenue Funds 101
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual - Nonmajor Special Revenue Funds 105
Description of Nonmajor Debt Service Funds 125
Combining Balance Sheet - Nonmajor Debt Service Funds 126
Combining Statement of Revenues, Expenditures, and Changes in
Fund Balance - Nonmajor Debt Service Funds 128
Description of Nonmajor Capital Project Funds 131
Combining Balance Sheet - Nonmajor Capital Project Funds 132
Combining Statement of Revenues, Expenditures and Changes in
Fund Balance - Nonmajor Capital Project Funds 134
Description of Nonmajor Permanent Fund 137
Balance Sheet - Nonmajor Permanent Fund 138
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Nonmajor Permanent Fund 139
Description of Nonmajor Proprietary Funds 141
Statement of Net Position - Nonmajor Proprietary Funds 142
Statement of Revenues, Expenses, and Changes in
Fund Net Position - Nonmajor Proprietary Funds 143
Statement of Cash Flows - Nonmajor Proprietary Funds 144
INTERNAL SERVICE FUNDS
Description of Internal Service Funds 145
Combining Statement of Net Position - Internal Service Funds 146
Combining Statement of Revenues, Expenses and Changes in Fund
Net Position - Internal Service Funds 148
Combining Statement of Cash Flows - Internal Service Funds 150
AGENCY FUNDS
Description of Agency Funds 153
Statement of Net Position - Agency Funds 154
CAPITAL ASSETS
Description of Capital Asset Schedules 155
Schedule by Function and Activity - Governmental Fund Capital Assets 156
Schedule of Changes by Function and Activity - Governmental Fund Capital Assets 158
Schedule of Changes in General Fixed Assets 159
SUPPLEMENTAL SCHEDULES
Description of Supplemental Schedules 161
Schedule 9 — Long -Term Debt 162
Schedule 10 — Limitation of Indebtedness 167
Schedule 16 — Schedule of Financial Assistance 168
Schedule 17 — Report on Public Works Projects 172
Schedule 19 — Schedule of Labor Relations Consultants 173
Schedule 21— Local Government Risk Assumption 174
STATISTICAL SECTION (UNAUDITED)
Net Assets by Component 175
Changes in Net Assets 176
Governmental Activities Tax Revenues by Source 179
Fund Balances of Governmental Funds 180
Changes in Fund Balances of Governmental Funds 182
General Governmental Tax Revenues by Source 184
Assessed Value and Estimated Actual Value of Taxable Property 185
Property Tax Rates — Direct and Overlapping Governments 186
Principal Property Taxpayers 187
Property Tax Levies and Collections 188
Ratios of Outstanding Debt by Type 189
Ratios of General Bonded Debt Outstanding 190
Direct and Overlapping Governmental Activities Debt 191
Legal Debt Margin Information 192
Pledged Revenue Coverage Water & Wastewater 193
Pledged Revenue Coverage Irrigation 194
Demographic and Economic Statistics 195
Principal Employers 196
Full Time Equivalent City Government Employees by Function 197
Operating Indicators by Function 198
Capital Asset Statistics by Function 199
City of Yakima — General Information 200
� DEPARTMENT OF FINANCE & BUDGET
■ 129 North Second Street
V ` >' . Yakima, Washington 98901
Q Spokane •
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40 Tacoma
• Yakima
September 17, 2013
Honorable Mayor and Members of the City Council
City of Yakima, Washington
We are pleased to submit to you this Comprehensive Annual Financial Report of the City of Yakima for the
fiscal year ended December 31, 2012, as required by State Statute RCW 43.09.230. Responsibility for both the
accuracy of the presented data and the completeness and fairness of its presentation, including all disclosures,
rests with the management of the City of Yakima. We believe the data, as presented, is accurate in all material
respects; that it is presented in conformity with GAAP (Generally Accepted Accounting Principles) and with
statements issued by GASB (Governmental Accounting Standards Board). GAAP and GASB regulations are
established in an effort to fairly set forth the financial position and results of operations of the City as measured
by the financial activity of its various funds; and that all required disclosures necessary to enable the reader to
gain the maximum understanding of the City's financial affairs have been included.
THE REPORTING ENTITY
This report includes all funds, agencies, and boards controlled by or dependent on the City of Yakima. In
addition to General Government activities, in 2012 the City exercised oversight responsibilities over the Yakima
Air Terminal, which was operated under a joint operating agreement with Yakima County - the Air Terminal
became a part of the City of Yakima in early 2013 and will, in future reports, be included as such. Yakima
County; Yakima Valley Regional Library; the Yakima, West Valley and Union Gap School Districts; Yakima
Health District; Yakima Conference of Governments; and the Yakima Housing Authority have separate
governmental or other entity characteristics and have substantial autonomy and, thus do not meet the GASB
criteria that would determine them to be a component unit of the City.
ABOUT THE CITY
The City of Yakima, county seat of Yakima County, was incorporated in 1886 and is located in central
Washington State. It encompasses 28.7 square miles in an area of rich volcanic soil. The City is 145 miles
southeast of Seattle, 200 miles southwest of Spokane, and 180 miles northeast of Vancouver, Washington. The
region is served by rail, highway and air transportation facilities, which have helped develop the City as the
commercial and business center of Central Washington. With a 2012 population of 91,930 Yakima is the ninth
largest city in the State of Washington.
The City of Yakima operates as a first class charter city under the Council /Manager form of government. The
City Council consists of seven Council members, four of whom are elected from separate districts, and three
elected at large. The Council chooses the Mayor from within its own membership every two years.
Introductory Section - i
The City provides the full range of municipal services contemplated by charter or statute. These include public
safety (police, fire, and building), public improvements (streets, traffic signals), sanitation (solid waste disposal,
sanitary wastewater utility), water and irrigation utilities, transit, community development, parks and
recreation, and general administrative services.
The City of Yakima lies within Yakima County in the fertile Yakima River Valley. Apples, cherries, pears,
grapes, and other fruits, plus a wide variety of field crops and vegetables make the Yakima Valley one of the top
agricultural producing areas of the nation. There are over 400,000 acres of Agriculture zoned land within the
County which produce over thirty types of fruits and vegetables. Irrigation in the valley is made possible from
water from the U.S. Bureau of Reclamation's Yakima Project. With its farm production base, the Yakima area is
a major food processing region.
Adding to the area's economy are over 250 manufacturing firms in the Yakima area that produced a variety of
products including wood products, packaging, plastic products, produce and aircraft parts.
Transportation
Commercial airline service is provided by Alaska Airlines through the Yakima Air Terminal. Greyhound Bus
has regular passenger service schedules to and from Yakima, and the Burlington Northern Santa Fe Railroad
supplies product services for Yakima. The air, highway and rail systems in the Yakima Valley provide critical,
high quality services to our agricultural, industrial, commercial and tourism based businesses.
Hospitals
There are two major hospitals in the Yakima area. Yakima Valley Memorial Hospital inpatient services include,
but are not limited to, Cardiology, Critical Care, Orthopedics, the Family Birthplace, Pediatrics Unit, Neonatal
Intensive Care, Surgery, Psychiatric Health Care, Respiratory Therapy, as well as a Laboratory and a Pharmacy.
Yakima Regional Medical and Cardiac Center provides a full complement of medical services, including open
heart surgery, a 17 -bed CARF accredited inpatient rehabilitation unit, a newly renovated and expanded 21 -bed
emergency department, a level III trauma designation and on campus MRI.
Cancer Care Clinic
The North Star Lodge is a 36,000 square foot outpatient Cancer Center built in 2000, and founded by Memorial
Hospital. The facility offers services beyond what many major medical centers offer. The innovative and
comprehensive cancer care offered at North Star Lodge allows Central Washington cancer patients the same
innovative treatments available at major cancer centers throughout the country.
Museum
The 69,500 square foot Yakima Valley Museum's historical exhibits about the Yakima Valley include natural
history, American Indian culture, pioneer life, early city life, and information regarding the Yakima Valley's
agriculture history, as well as the Museum Soda Fountain, a functioning replica of a late 1930's Art Deco soda
fountain.
Economic Development
The nonprofit Yakima County Development Association (New Vision), originally funded with $1,000,000 in
donations from local business and industry, has made tangible progress over the years in business expansion,
industrial recruitment, development of new business ventures and infrastructure development with broad
public and private sector involvement. Over the past five years New Vision has provided in -depth assistance to
19 companies that have located or expanded business facilities in Yakima County. These companies have
collectively invested over $70 million in new facilities or equipment. The businesses have created over 500 new
jobs and will add another 200 jobs during 2013.
ii — Introductory Section
Higher Education
There are several higher education institutions serving the Yakima area. Yakima Valley Community College
(YVCC) in Yakima and Grandview is a two -year institution founded in 1928, which offers a multitude of
academic programs. Heritage University is located a few miles southeast of Yakima, and is an accredited four -
year liberal arts college. Perry Technical Institute offers a nationally recognized vocational / technical program
and is accredited by ACCSCT (Accrediting Commission of Career Schools and Colleges of Technology). The
Pacific Northwest University of Health Sciences (PNWU) opened in 2008 and trains approximately 75 new
primary care physicians per year. PNWU is the first medical university to open in the Pacific Northwest in 60
years.
Tourism
Yakima is a popular location for sports events, conventions and a variety of tourism activities due to its dry
climate, approximately 300 days of sunshine annually, and convenient central location in the State. The Yakima
area provides hunting, fishing and water skiing opportunities, and provides numerous recreation opportunities
in both summer and winter - within an hour's drive there are abundant recreational activities, such as snow
skiing, hiking, mountain climbing, and rock climbing, located in numerous National Parks - including Mt.
Rainier National Park.
A growing industry bringing increasing numbers of tourists to the Yakima Valley is Yakima Valley's
magnificent vineyards and wineries. The area is fast becoming known as the "Gateway to Wine Country."
There are over forty wineries located in the Yakima Valley, and many area wines have received significant
recognition and awards.
Recreational opportunities are plentiful in Greater Yakima. There are 34 parks, for a total of 352 acres, located
within the City for public use. The City operates two swimming pools — one outdoor and one indoor, along
with two water playground areas and two skate parks. In addition, there are two public and one private 18-
hole golf courses, three nine -hole courses and 24 public tennis courts. There are also six little league fields and
ten softball fields — eight of which have lighting. In addition to the six soccer fields located in City parks, the
J.M. Perry Complex has fields that can be configured into either ten youth or six full size soccer fields.
Facilities within the area which provide for various conventions, sports and other tourism related activities
include:
A- The Yakima Convention Center has an impressive 41,000 square feet of meeting space available. The fully
carpeted, column free, 23,400 square foot Grand Ballroom can be divided into eight separate rooms and
the South Ballroom can be divided into six separate rooms, allowing many possible variations to fit
specific needs.
A- The Yakima Valley Sun Dome, a multipurpose trade and convention center with 56,000 square feet of
usable space and seating for up to 8,000 people. The Sun Dome is utilized for meetings, concerts, trade
shows and indoor sporting events, and regularly hosts many statewide, regional and high school
sporting events.
A- The Capitol Theatre, a magnificent and historical theatre originally built in 1920, seats 1,500 and holds
over 150 activities and events annually. The theatre recently expanded by adding a Production Center
which was completed in late 2010. This facility includes a 500 seat black box theatre now known as the
"4th Street Theatre ", as well as an expanded loading /unloading area that will accommodate larger
productions, and an additional basement storage area.
Introductory Section — iii
THE "FUTURE"
Economic Improvement
The ongoing expansion /remodel of the Capitol Theatre is a positive influence on the local tourism industry. The
Yakima Valley is also emerging as a world -class wine producing area. The City continues to seek out
opportunities to create economic growth in our region.
p. Yakima has participated in a Housing and Urban Development (HUD) Section 108 Loan /Grant Program
for businesses located in the Target Area. The program is designated to provide financial assistance in
the form of a HUD loan to help fund start up or expansion costs for businesses that create a set level of
new jobs. The City of Yakima is currently authorized for up to $7 million.
A- Washington State recently established a Local Infrastructure Financing Tool (LIFT) program, as outlined
in RCW 39.102. Yakima's application to the State Community Economic Revitalization Board (CERB)
was approved, granting a project award of up to $1 million in annual taxing authority (both property
tax and sales tax) for up to 25 years. The financing will be used for public infrastructure improvements
related to the redevelopment of the former Boise Cascade /Yakima Resources sawmill and plywood
plant
General Government
The 2012 General Fund budget is balanced within available resources. However, the continued escalation in
costs for public safety programs, mandated State and Federal costs, and other non - discretionary operating
expenses makes balancing the budget a great challenge each year. While sales tax revenues have dropped in
recent years, the local economy, because of its agricultural base, did not see as severe of a drop in basic tax
revenues as other municipalities during this recent recession. However, service levels were reduced in response
to the stagnant revenues. Additionally, voter action to reduce taxes statewide has created additional challenges
to the City's ability to continue to provide essential services. Long -term allocation of General Government
Resources (General Fund, Parks and Streets) continues to be of primary budgetary focus.
Utilities / Enterprise Funds
In the area of utilities and enterprise operations, planning and improvement costs are driven primarily by
unfunded State and Federal mandates and the need to upgrade aging facilities. The cost of these mandates and
facility improvements are paid for through customer rates.
Legislative Changes
In recent years voter approved initiatives have primarily had negative effects on governments in Washington
State. The City's management staff and policy makers recognize the challenges many of these initiatives will
continue to have on our ability to balance future budgets. Additionally, the voters strong desire, as indicated in
recent State and local elections, not to raise taxes (i.e. government revenues) significantly adds to the difficult
challenges of balancing our budget within available resources while maintaining existing critical and core
services to our community. Staff and City Council will continue to work closely with our state and federal
legislative representatives to inform them of, and to promote, legislative changes necessary to help maintain the
safety and security of our citizens and reduce the fiscal pressures on local government.
FORMAT OF REPORT
This report has been prepared in conformance with Generally Accepted Accounting Principles. It presents
financial data at a city -wide level and incorporates increasing levels of detail as necessary to report the financial
position and operating results of the City's individual funds, to demonstrate compliance with finance - related
legal and contractual requirements and to assure adequate disclosure at both the individual fund level and on a
City -wide basis.
iv — Introductory Section
This report is divided into three sections:
A- The Introductory Section — provides general information on the City's structure and personnel as well as
information useful in assessing the City's financial condition.
A- The Financial Section — contains the basic financial statements and required supplementary information
(including management's discussion and analysis), as well as the independent auditor's report. The
financial section also provides information on each individual fund for which data is not reported
separately in the basic financial statements.
A- The Statistical Section — provides a broad range of trend data covering key financial indicators from the
past ten fiscal years. It also contains demographic and miscellaneous data that may be useful in
assessing the City's financial condition.
ACKNOWLEDGEMENTS
Independent Audit
Washington State Statute RCW 43.09.260 requires that an audit of the books of account, financial records, and
transactions of all administrative departments of the City be conducted at least once every three years by the
State Auditor's Office. However, it is the practice of the State Auditor to conduct audits of cities the size of
Yakima on an annual basis. Enclosed is a copy of the State Auditors' opinion related to their audit of the
enclosed financial statements. The City of Yakima has received an unqualified opinion on the financial
statements (refer to the Auditor's opinion in the front of the Financial Section, herein).
SUMMARY
Preparation of this report could not have been accomplished without the professional and dedicated services of
the Finance and Information Technology Services staff. The assistance of the Examiners from the Office of the
State Auditor is also gratefully acknowledged.
Further, appreciation is extended to the City Council for their encouragement, interest and support in
conducting the financial operations of the City in a sound and progressive manner.
Respectfully submitted,
Tony O'Rourke Cindy Epperson
City Manager Director of Finance & Budget
Introductory Section — v
vi — Introductory Section
• � •
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Washington State Auditor
Troy Kelley
INDEPENDENT AUDITOR'S REPORT
September 17, 2013
Mayor and City Council
City of Yakima
Yakima, Washington
REPORT ON FINANCIAL STATEMENTS
We have audited the accompanying financial statements of the governmental activities, the business -type
activities, each major fund and the aggregate remaining fund information of the City of Yakima, Yakima County,
Washington, as of and for the year ended December 31, 2012, and the related notes to the financial statements,
which collectively comprise the City's basic financial statements as listed in the table of contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance
with accounting principles generally accepted in the United States of America; this includes the design,
implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial
statements that are free from material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted our
audit in accordance with auditing standards generally accepted in the United States of America and the standards
applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of
the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial
statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of
material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the
auditor considers internal control relevant to the City's preparation and fair presentation of the financial statements in
order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the City's internal control. Accordingly, we express no such opinion. An audit also
includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting
estimates made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinions.
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective
financial position of the governmental activities, the business -type activities, each major fund and the aggregate
remaining fund information of the City of Yakima, Yakima County, Washington, as of December 31, 2012, and the
respective changes in financial position and, where applicable, cash flows thereof, and the respective budgetary
comparison for the General and Community Development funds for the year then ended in accordance with
accounting principles generally accepted in the United States of America.
Insurance Building, P.O. Box 40021 • Olympia, Washington 98504 -0021 • (360) 902 -0370 • TDD Relay (800) 833 -6388
Comprehensive Annual Financial Report (CAFR) —1
Matters of Emphasis
As described in Note 13, during the year ended December 31, 2012, the City has implemented the Governmental
Accounting Standards Board Statement No. 63, Financial Reporting of Deferred Outflows of Resources, Deferred
Inflows of Resources and Net Position. Our opinion is not modified with respect to this matter.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management's discussion
and analysis on pages 3 through 16, information on postemployment benefits other than pensions on pages 91 through
92 and pension trust fund information on pages 92 be presented to supplement the basic financial statements. Such
information, although not a part of the basic financial statements, is required by the Governmental Accounting
Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements
in an appropriate operational, economic or historical context. We have applied certain limited procedures to the
required supplementary information in accordance with auditing standards generally accepted in the United States of
America, which consisted of inquiries of management about the methods of preparing the information and comparing
the information for consistency with management's responses to our inquiries, the basic financial statements, and other
knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide
any assurance on the information because the limited procedures do not provide us with sufficient evidence to express
an opinion or provide any assurance.
Supplementary and Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the
City's basic financial statements. The accompanying information listed as combining financial statements and
supplementary information on pages 93 through 174 is presented for purposes of additional analysis and is not a
required part of the basic financial statements. Such information is the responsibility of management and was derived
from and relates directly to the underlying accounting and other records used to prepare the financial statements. This
information has been subjected to auditing procedures applied in the audit of the basic financial statements and certain
additional procedures, including comparing and reconciling such information directly to the underlying accounting and
other records used to prepare the financial statements or to the financial statements themselves, and other additional
procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion,
the information is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole.
The information identified in the table of contents as the Introductory and Statistical Sections is presented for
purposes of additional analysis and is not a required part of the basic financial statements of the City. Such
information has not been subjected to the auditing procedures applied in the audit of the basic financial
statements and, accordingly, we do not express an opinion or provide any assurance on it.
OTHER REPORTING REQUIRED BY GOVERNMENT AUDITING STANDARDS
In accordance with Government Auditing Standards, we will also issue our report dated September 17, 2013, on our
consideration of the City's internal control over financial reporting and on our tests of its compliance with certain
provisions of laws, regulations, contracts and grant agreements and other matters. That report will be issued
under separate cover in the City's Single Audit Report. The purpose of that report is to describe the scope of our
testing of internal control over financial reporting and compliance and the results of that testing, and not to
provide an opinion on internal control over financial reporting or on compliance. That report is an integral part
of an audit performed in accordance with Government Auditing Standards in considering the City's internal control
over financial reporting and compliance.
Sincerely,
/1e1-4
TROY KELLEY
STATE AUDITOR
2 - Comprehensive Annual Financial Report (CAFR)
MANAGEMENT'S DISCUSSION AND ANALYSIS
The City of Yakima's discussion and analysis offers readers of the City's financial statements a narrative
overview and analysis of the City's financial activities for the fiscal year ended December 31, 2012. Readers
are encouraged to consider the information presented here in conjunction with additional information that
has been furnished in the letter of transmittal and in the financial statements and notes to the financial
statements (which immediately follow this discussion).
FINANCIAL HIGHLIGHTS
A- The total assets of the City of Yakima exceeded its liabilities at December 31, 2012, by $296.8 million.
Net position invested in capital (net of depreciation and related debt) account for 87.3% of this
amount, with a value of $259.1 million. Of the remaining net position, $17.5 million may be used to
meet the government's ongoing obligations to citizens and creditors, without legal restriction.
p. The City's total net position increased by $6.0 million. Most of the increase was the result of capital
grants and donations.
A- As of December 31, 2012, the City of Yakima's governmental activities reported combined ending net
position of $165.2 million, an increase of $0.2 million in comparison with the prior year. Of that
amount, $149.2 million was invested in capital assets and $18.5 million was legally restricted for
specific projects or programs. Unrestricted net position increased from negative $0.9 million to a
negative $2.5 million primarily because of the liability for long -term post - employment benefits,
which are continuing to increase.
A- Unassigned fund balance for the General Fund was $9.8 million dollars at December 31, 2012. This
balance represents 19.0% of total General Fund expenditures and transfers out.
A- The City of Yakima's total long -term debt at December 31, 2012, was $79.0 million (about $46.0
million in Governmental activities and $33.0 million in business type activities), with a remaining
capacity for non -voted General Obligation debt at $60.4 million, or 73.3% of the legal limit. Total debt
decreased by $0.1 million during the current fiscal year. The City did not issue long -term bonded
debt in 2012.
OVERVIEW OF THE FINANCIAL STATEMENTS
This discussion and analysis is intended to serve as an introduction to the City of Yakima's basic financial
statements. The basic financial statements are comprised of three components: 1) Government -wide financial
statements, 2) Fund financial statements, and 3) Notes to the financial statements.
Government - Wide Financial Statements
There are two government -wide financial statements, the statement of net position and the statement of
activities, which are designed to provide readers with a broad overview of the City of Yakima's finances in a
manner similar to a private sector business. Both of the government -wide financial statements distinguish
functions of the City of Yakima that are principally supported by taxes and intergovernmental revenues
(referred to as "governmental activities ") from functions that are intended to recover all or a significant
portion of their costs through user fees and charges (referred to as "business type activities "). The
governmental activities of the City of Yakima include a full range of local governmental services provided to
the public, such as public safety (police, municipal court, fire, and building); public improvements (streets,
traffic signals); parks and recreation; community development; and general administrative services. The
business type activities of the City of Yakima include sanitation (solid waste disposal, wastewater treatment,
and stormwater management); potable and irrigation water systems; and transit.
Comprehensive Annual Financial Report (CAFR) — 3
The Statement of Net Position presents information on all of the City of Yakima's assets and liabilities, with
the difference between the two reported as net position. This statement serves a purpose similar to that of the
balance sheet of a private sector business. Over time, increases or decreases in net position may serve as a
useful indicator of changes in the City's financial position. However, this is just one indicator of financial
health of the City. Other indicators include the condition of the City's infrastructure systems (roads, drainage
systems, bridges, etc.), changes in property tax base, and general economic conditions within the City.
The Statement of Activities (Changes in Net Position) presents information showing how the government's net
position changed during the year. Because it separates program revenue (revenue generated by specific
programs through charges for services, grants, and contributions) from general revenue (revenue provided by
taxes and other sources not tied to a particular program), it shows to what extent each program has to rely on
taxes for funding. All changes in net position are reported using the accrual basis of accounting which requires
that revenue be reported when earned and expenses be reported when the goods and services are received,
regardless of the timing of the cash flow. Items such as uncollected taxes, unpaid vendor invoices for items
received in 2012, and earned but unused vacation leave will be included in the statement of activities as revenue
and expense, even though the cash associated with these items may not be received or distributed in 2012.
Fund Financial Statements
A fund is a grouping of related accounts that is used to maintain control over resources that have been
segregated for specific activities or objectives. The City of Yakima, like other state and local governments,
uses fund accounting to ensure and demonstrate compliance with finance related legal requirements. All of
the funds of the City of Yakima can be divided into three categories: Governmental Funds, Proprietary
Funds, and Fiduciary Funds. Governmental Funds are used to account for most, if not all, of a government's
tax supported activities. Proprietary Funds are used to account for a government's business type activities,
where all or part of the costs of activities are supported by fees and charges that are paid directly by those
who benefit from the activities. Fiduciary Funds are used to account for resources that are held by the
government as a trustee or agent for parties outside of the government. The resources of fiduciary funds
cannot be used to support the government's own programs.
Governmental Funds
The Governmental Fund Balance Sheet and the Governmental Fund Statement of Revenues, Expenditures, and
Changes in Fund Balances present separate columns of financial data for the General Fund and the Community
Development Fund, which is considered to be a major fund, based on criteria established by GASB Statement #34.
Data from the remaining governmental funds are combined into a single, aggregated presentation. The
governmental fund financial statements can be found immediately following the government -wide financial
statements. Individual fund data for each of the nonmajor governmental funds is provided in the form of
combining statements, outside of the basic financial statements.
Governmental funds are used to account for essentially the same functions reported as governmental
activities in the government -wide financial statements. However, unlike government -wide financial
statements which use accrual accounting, governmental fund financial statements focus on near -term inflows
and outflows of spendable resources and on balances of spendable resources available at the end of the fiscal
year. Such information is useful in evaluating a government's near -term financing requirements in
comparison to near -term resources available.
Because the focus of governmental fund financial statements is narrower than that of government -wide
financial statements, it is useful to compare information presented for governmental funds with similar
information presented for governmental activities in the government -wide financial statements. By doing so,
readers may better understand the long -term impact of the government's near -term financing decisions. Both
the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and
changes in fund balances provide reconciliation to the governmental activities column in the government -
wide statements, in order to facilitate this comparison.
4 — Comprehensive Annual Financial Report (CAFR)
The City maintains budgetary controls over its operating funds. The objective of budgetary controls is to
ensure compliance with legal provisions embodied in the annual appropriated budget. Budgets for
governmental funds are established in accordance with state law and are adopted on a fund level. Capital
outlays are approved on an item by item basis or project basis. A budgetary comparison statement is
provided for the General Fund and all special revenue funds to demonstrate compliance with the budget.
Proprietary Funds
There are two types of proprietary funds: Enterprise and Internal Service. Enterprise Funds are used to
report the same functions presented as business type activities in the government -wide financial statements.
The City uses enterprise funds to account for its Solid Waste (Refuse); Wastewater; Domestic Water;
Irrigation; Stormwater; and Transit functions. Internal Service Funds (the second type of proprietary funds)
accumulate and allocate costs internally among the City's various functions. The revenues and expenses of
the internal service funds that are duplicated in other funds through allocations are eliminated in the
government -wide statements, with the remaining balances included in the governmental activities column.
Proprietary fund statements follow the governmental fund statements in this report. They provide the same type
of information as the government -wide financial statements, only in more detail, since both apply the accrual basis
of accounting. In comparing the Proprietary Fund Statement of Net Position to the business type column on the
Government -Wide Statement of Net Position, you will notice that the total net position agree and, therefore, need
no reconciliation. In comparing the total assets and total liabilities between the two statements, you will notice
slightly different amounts. This is because the "internal balances" line on the government -wide statement
combines the "due from other funds" (asset) and the "due to other funds" (liabilities) from the proprietary fund
statement in a single line in the asset section of the government -wide statement.
Individual fund data for each of the nonmajor proprietary funds is provided in the form of combining
statements. The proprietary fund combining statements follow the governmental fund combining statements
in this report.
Fiduciary Funds
Fiduciary funds are used to account for resources held for the benefit of parties outside the government.
Fiduciary funds are not reflected in the government -wide financial statement because the resources of those
funds are not available to support the City of Yakima's own programs. The accounting used for fiduciary
funds is much like that used for proprietary funds.
The City of Yakima has one fiduciary fund for Firefighter pensions. The basic fiduciary fund financial
statements can be found following the proprietary fund financial statements, in the Basic Financial Statements
section.
Notes to the Financial Statements
The notes provide additional information that is essential to a full understanding of the data provided in the
government -wide and fund financial statements. The notes to the financial statements can be found
immediately following the basic financial statements in this report.
GOVERNMENT -WIDE FINANCIAL ANALYSIS
Statement of Net Position
As noted earlier, net position may serve over time as a useful indicator of a government's financial position.
The City of Yakima's net position total $296.8 million at December 31, 2012. The following table reflects the
condensed Government -Wide Statement of Net Position with comparative totals for 2011.
Comprehensive Annual Financial Report (CAFR) — 5
NET POSITION
— Governmental Activities — — Business -Type Activities Total
2012 2011 2012 2011 2012 2011
Assets
Current and Other Assets $50,492,111 $48,857,912 $28,539,333 $26,739,785 $79,031,444 $75,597,698
Capital Assets 174,014,941 174,600,762 141,740,837 136 ,725,420 315,755,778 311,326,182
Total Assets 224,507,052 223,458,674 170,280,170 163 ,465,205 394,787,222 386,923,880
Liabilities
Payables and Other Liabilities 13,246,345 12,097,094 5,743,083 4,925,549 18,989,428 17,022,643
Long -term Liab Outstanding 46, 019, 016 46 ,309,569 32,951,944 32,796,794 78,970,960 79,106,363
Total Liabilities 59, 265, 361 58 ,406,663 38,695,027 37,722,343 97,960,388 96,129,006
Net Position
Inv in Cap Assets, Net /Rel Debt 149,221,688 147,348,809 109,844,466 105,681,034 259,066,154 253,029,843
Restricted 18,548,336 18,624,710 1,756,587 2,372,254 20,304,923 20,996,964
Unrestricted (2,528,333) (921,508) 19,984,090 17,689,574 17,455,757 16,768,067
Total Net Position $165,241,691 $165,052,011 $131,585,143 $125,742,862 $296,826,834 $290,794,874
The City of Yakima's total assets stand at $394.8 million as of December 31, 2012. Of this amount, $315.8
million is accounted for by capital assets, which includes some infrastructure and construction in progress.
Out of $174.0 million in capital assets reported in Governmental activities at December 31, 2012, $97.4 million
(56.0 %) is accounted for by infrastructure acquisitions (including the right -of -way land associated with these
projects and land under the road).
Of the remaining City assets, approximately $57.5 million was accounted for in cash, cash equivalents, and
investments, $14.8 million in accounts receivable, $4.9 million in notes receivable, and $1.0 million spread
among miscellaneous assets.
At December 31, 2012, the City had outstanding liabilities of $98.0 million, with $79.0 million in long -term
liabilities. Of the long -term liabilities, $5.3 million was due within a year, with the remainder due over an
extended period of time. The deficit in "unrestricted" net position in the governmental funds increased
because the City has long -term commitments that are greater than currently available resources, primarily in
pension and other post - employment benefits for certain police officers and firefighters. Refer to the notes to
the financial statements (Note 7) for a more in depth discussion of long -term debt.
"Payables and Other Liabilities" for total Governmental and Business type activities total $19.0 million, and
include $11.4 million in accounts payable, $6.1 million in accrued liabilities and $0.9 million in liabilities
payable from restricted net position.
The largest portion of the City's net position (87.3 %) reflects its investment in capital, less any outstanding related
debt used to acquire those assets. The City's capital assets, which are used to provide services to citizens, are
investments in capital and are not available for future spending. Although the City's investment in capital assets is
reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from
other sources, since the capital assets themselves cannot be used to liquidate these liabilities.
Approximately 6.8% of the City's net position are subject to external restrictions on how they may be used
(restricted by the Revised Code of the State of Washington or by contractual agreements with parties outside
of the primary government). The remaining balance of $17.5 million (unrestricted net position) represents the
amount that may be used to meet the City's ongoing obligations.
At December 31, 2012, the City of Yakima reports positive balances in all three categories of net position, for
the government as a whole, as well as for governmental activities and business type activities.
6 — Comprehensive Annual Financial Report (CAFR)
The Statement of Activities (Changes in Net Position)
The City of Yakima's total net position is increased by $6.0 million in 2012. Net position for governmental
activities increased by $0.2 million while business type activities increased by $5.8 million.
Total revenues for the City of Yakima were $118.9 million in 2012. Governmental activities provided $70.4
million (59.2 %), while business type activities added $48.5 million (40.8 %).
Expenses for the year totaled $112.9 million, with governmental activities accounting for $76.5 million or
67.7% and business type activities accounting for $36.4 million or 32.3 %. Key elements in changes in net
position are shown in the following table.
CHANGES IN NET POSITION
— Governmental Activities — — Business -Type Activities — Total
2012 2011 2012 2011 2012 2011
Revenues
Program Revenues
Charges for Services $6,714,501 $7,554,138 $38,863,559 $33,025,394 $45,578,060 $40,579,532
Operating Grants & Cont's 10,847,928 10,507,337 2,712,951 2,911,483 13,560,879 13,418,820
Capital Grants & Cont's 4,882,765 14,990,798 2,117,984 1,646,462 7,000,749 16,637,260
General Revenues
Property Tax 15,565,053 15,125,934 0 0 15,565,053 15,125,934
Sales Tax 19,599,338 18,345,631 4,762,435 4,449,318 24,361,773 22,794,949
Other Taxes 12,453,776 11,909,937 0 0 12,453,776 11,909,937
Other 350,616 305,493 11,348 9,033 361,964 314,526
Total Revenues 70,413,977 78,739,268 48,468,277 42,041,690 118,882,254 120,780,958
Expenses
General Government 8,668,467 8,428,617 0 0 8,668,467 8,428,617
Security of Persons & Prop 42,995,833 40,613,776 0 0 42,995,833 40,613,776
Physical Environment 658,353 669,994 0 0 658,353 669,994
Transportation 11,529,609 11,078,858 0 0 11,529,609 11,078,858
Economic Environment 3,949,760 4,840,368 0 0 3,949,760 4,840,368
Mental & Physical Health 23,859 21,794 0 0 23,859 21,794
Cultural & Recreational Env 7,521,672 7,859,223 0 0 7,521,672 7,859,223
Interest on Long -Term Debt 1,122,075 1,160,226 0 0 1,122,075 1,160,226
Transit 0 0 9,084,940 8,564,033 9,084,940 8,564,033
Refuse 0 0 4,678,575 4,472,124 4,678,575 4,472,124
Wastewater 0 0 13,634,191 13,971,838 13,634,191 13,971,838
Water 0 0 5,834,230 5,545,477 5,834,230 5,545,477
Irrigation 0 0 1,891,067 1,884,268 1,891,067 1,884,268
Stormwater 0 0 1,317,927 1,317,024 1,317,927 1,317,024
Total Expenses 76,469,628 74,672,856 36,440,930 35,754,764 112,910,558 110,427,620
Increases in Net Position Before
Non - operating Sources (Uses) (6,055,651) 4,066,412 12,027,347 6,286,926 5,971,696 10,353,338
Gain /loss Sale Capital Assets 73,267 (148,059) 6,566 (529,423) 79,833 (677,482)
Transfers 6,172,065 3,717,744 (6,191,634) (3,717,746) (19,569) (2)
Change in Net Position 189,681 7,636,097 5,842,279 2,039,757 6,031,960 9,675,854
Net Position - Beginning 165,052,010 157,415,915 $125,742,862 123,743,528 290,794,872 281,159,443
Prior Period Adjustment 0 0 0 (40,425) 0 (40,425)
Net Position - Ending $165,241,691 $165,052,012 $131,585,141 $125,742,860 $296,826,832 $290,794,872
Comprehensive Annual Financial Report (CAFR) — 7
Governmental Activities
Within governmental activities, tax revenue accounted for 67.6% of total revenue sources, with grants
and contributions accounting for 22.3 %. The remaining 10.0% of revenue was provided by charges for
services, interest income, and miscellaneous revenues. (Note: the revenue indicators in the following
charts do not include one -time only financing sources, such as proceeds from new debt or the sale of
assets.)
Governmental activities increased net position by $0.2 million or 0.1 %. Total revenues decreased by $8.3
million or 11.8 %. Significant fluctuations in revenue are as follows:
.- Capital Grants & Contributions decreased by $10.1 million, primarily because 2011 included a
major railroad grade separation project that built a new underpass which was mostly funded by
grants.
A- Total taxes increased by $2.2 million or 4.9% from $45.4 million to $47.6 million.
• Property Taxes increased 2.9 %, consisting of a 1% increase in the base levy (capped by
state law; with the balance resulting from new construction and refunds.
• Sales Tax increased by $1.25 million or 6.8% from 2011. The City experienced significant
improvement in sales tax in the second half of the year, buoyed by a good year in the
agricultural sector.
• Other Taxes increased by $0.5 million or 4.6 %. Real Estate Excise Tax was also on the
rebound in 2012.
.- Transfers from Business Type Activities increased by $2.5 million primarily because City Council
imposed an additional 6% tax on internal utilities — Water, Wastewater, Refuse and Stormwater
to support Public Safety. This generated about $2.0 million in 2012.
Most revenue categories were relatively flat as would be expected in the sluggish economy.
The largest program expenses consist of Security of Persons and Property (public safety), Transportation,
and General Government, respectively. These programs accounted for 82.6% of total governmental
expenses.
For the most part, changes in expenses were the result of the implementation of cost containment
measures in response to the revenue reductions caused by the national recession. The major exceptions
to this rule are generally tied to grant activity. Additional explanations follow:
.- Security of Persons and Property demonstrated an increase of $2.4 million or 5.5% primarily
because of City Council's imposition of an additional 6% utility tax dedicated to Public Safety.
This category remains City Council's highest budget priority.
.- Transportation increased by $0.5 million, primarily because the new underpass was placed in
service and began to be depreciated.
.- Economic Environment decreased by about $0.9 million, primarily due to a significant decrease
in Housing and Urban Development operating grant allocation and completion of a major
housing project in 2011.
Following are graphs which illustrate revenue by source and expenditures by program for governmental
funds in 2012.
8 — Comprehensive Annual Financial Report (CAFR)
REVENUES BY SOURCE - GOVERNMENTAL ACTIVITIES
Capital Grants
and Other
Contributions Revenues
69% 05%
Property Tax
Operating 22 1%
Grants and
Contnbutions
154%
Charges for
Services
95%
Sales Tax
278%
Other Taxes
177%
EXPENSES AND PROGRAM REVENUES - GOVERNMENTAL ACTIVITIES
45,000,000
40,000,000
35,000,000
30,000,000 /Expenses
25,000,000 /Program Revenues
20,000,000
15,000,000
10,000,000
5,000,000 111
General Security of Physical Transportation Economic Mental & Cultural & Interest on
Government Persons and Environment Environment Physical Health Recreational Long -Term
Property Environment Debt
Business Type Activities
Of the $48.5 million in business type revenues, 80.2% was provided by charges for services, with the
remaining amount provided by grants, contributions, transit sales tax and interest income. Overall, business
type revenues demonstrated an increase of $6.4 million or 15.3% over 2011.
Business type revenues experienced the following fluctuations:
➢ Charges for Services increased by $5.8 million or 17.7 %. The Water, Wastewater, Irrigation and
Refuse utilities had rate increases as of January, 2012 of 11.1 %, 11.5 %, 5.5% and 6.0% respectively.
These rate adjustments were a combination of the additional 6% tax imposed by City Council along
Comprehensive Annual Financial Report (CAFR) — 9
with regularly scheduled increases to support the utilities operating and capital programs. Bumper
fruit crops increased activity in food processing plants, which are intensive water /wastewater users.
Of the $36.4 million in business type expenses, 37.4% are associated with the Wastewater program and 24.9% with
Transit, domestic water programs represent about 16.0 %, Refuse 12.8 %, Irrigation 5.2% and Stormwater 3.6 %.
Generally, changes in expenses are in line with rate increases and additional depreciation on donated assets.
The following charts depict the expenses and program revenues, with a breakdown of revenues by source for
the business type activities.
REVENUES BY SOURCE - BUSINESS TYPE ACTIVITIES
Charges for
Services
802%
Operating Grants
& Contributions
56%
Capital Grants &
Contributions
44%
Sales Tax
98%
Unrestricted
Investment
Earnings
0 02%
EXPENSES AND PROGRAM REVENUES - BUSINESS TYPE ACTIVITIES
25,000,000
20,000,000
15,000,000 ■Expenses
■Program Revenues
10,000,000
5,000,000
0 in
Transit Refuse Wastewater Water Irrigation Stormwater
Charges for services represent the majority 80.2% of revenue in these funds. The only fund that does not rely
heavily on charges for service is the Transit fund, which is subsidized by a voter approved local option sales
tax of 0.3% and a federal operating grant.
10 — Comprehensive Annual Financial Report (CAFR)
FINANCIAL ANALYSIS OF THE CITY'S FUNDS
As noted earlier, the City of Yakima uses fund accounting to ensure and demonstrate compliance with
finance related legal and regulatory requirements. Following is a financial analysis of the City's
governmental and proprietary funds.
Governmental Funds Analysis
The General Fund and the Community Development Fund (which administers the City's Community
Development Block Grants) are the City's major funds (as defined in GASB #34) in 2012. Together these
funds account for 55.9% of total governmental fund assets and 42.8% of total governmental fund balances.
The focus of the City of Yakima's governmental funds is to provide information on near -term inflows, outflows,
and balances of spendable resources. In particular, unassigned fund balance may serve as a useful measure of a
government's net resources available for spending at the end of the fiscal year. As of December 31, 2012, the City's
governmental funds reported combined fund balances of $23.3 million. Of this total amount, about $9.7 million
(41.8 %) is unassigned and available for spending within these funds. About $0.7 million is not spendable
(perpetual care), $8.8 million is restricted (primarily for transportation, capital improvements, and public safety),
$3.1 million is committed primarily for transportation system improvements and $1.0 million is assigned primarily
for public safety.
The General Fund is the chief operating fund of the City of Yakima. At the end of the 2012 fiscal year,
unassigned fund balance of the General Fund was $9.7 million. Unassigned fund balance is about 19.0% of
total general fund expenditures and transfers out (which represents about a 2.3 month reserve). Total assets
in the General Fund amounted $16.5 to million, accounting for 42.0% of total governmental fund assets.
The fund balance of the City of Yakima's General Fund increased by $0.7 million during the current fiscal
year. As sales tax revenue started to rebound in the second half of the year, and a utility tax increase for
public safety was realized, General Fund was able to transfer additional resources for capital and risk
management programs — transfers out increased by $1.2 million from 2011.
The General Fund accounts for 65.6% of all governmental fund revenue and 59.9% of all expenditures.
The Community Development fund has a decrease of $76,626 in fund balance. This fund balance fluctuates
slightly from year to year depending on the timing of the receipt and spending of program income.
Other governmental funds ended with a slight net decrease in fund balances of $949. All funds had only
modest changes in fund balance.
Enterprise Funds Analysis
Transit, Wastewater, Domestic (potable) Water, and Irrigation Water are considered major funds in the City's
2012 (GASB 34) Financial Statements while Refuse and Stormwater are nonmajor funds.
As of December 31, 2012, the City's enterprise funds (internal service fund balances are treated entirely as
governmental activities) reported combined net position of $131.6 million, with $65.3 million or
approximately 49.6% being contributed by the Wastewater fund. Of the $131.6 million, about $109.8 million
(83.5 %) of net position is accounted for by investment in capital assets, net of related debt, $1.8 million is
restricted for debt service and million is unrestricted. The Notes to the Financial Statements (Note 10)
present segment information that is grouped according to revenue bond requirements for these business type
activities.
Comprehensive Annual Financial Report (CAFR) —11
GENERAL FUND BUDGETARY HIGHLIGHTS
General Fund Changes in Budget
The following table shows the 2012 General Fund Adopted (original) Budget, the amended (final) Budget,
Actual revenue and expenditure amounts, and the variance of Actuals compared to the Final budget.
CHANGE IN GENERAL FUND BALANCE
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
Revenues
Taxes and Special Assessments $40,437,500 $40,437,500 $41,847,570 $1,410,070
Licenses and Permits 616,700 616,700 892,282 275,582
Intergovernmental Revenues 2,016,230 2,316,230 2,862,187 545,957
Charges for Services 5,079,930 5,079,930 4,676,966 (402,964)
Fines and Forfeits 1,645,700 1,645,700 1,512,477 (133,223)
Interest 300,000 300,000 309,075 9,075
Other Revenues 33,550 33,550 41,541 7,991
Total Revenues $50,129,610 $50,429,610 $52,142,098 $1,712,488
Expenditures
Current
General Government $11,571,558 $11,787,788 $11,339,326 $448,462
Security of Persons and Property 34 ,129,946 34,759,404 34,783,683 (24,279)
Physical Environment 942,336 942,336 899,783 42,553
Economic Environment 668,101 668,101 643,232 24,869
Mental & Physical Health 22,000 22,000 23,859 (1,859)
Capital Outlay
General Government 15,000 65,429 123,439 (58,010)
Security of Persons and Property 0 0 102,506 (102,506)
Debt Service
Principal Retirement 37,416 37,416 37,416 0
Interest 9,693 9,693 9,693 0
Total Expenditures $47,396,050 $48,292,167 $47,962,937 $329,230
Excess (Deficiency) of Revenues
Over (Under) Expenditures $2,733,560 $2,137,443 $4,179,161 $2,041,718
Other Financing Sources (Uses)
Transfers In $40,000 $40,000 $40,000 $0
Transfers (Out) (2,331,275) (3,231,275) (3,485,667) (254,392)
Intergovernmental Agreements (39,095) (39,095) (39,095) 0
Comp for Loss of Gen. Capital Assets 0 0 16 16
Total Other Financing Sources (Uses) ($2,330,370) ($3,230,370) ($3,484,746) ($254,376)
Net Change in Fund Balances $403,190 ($1,092,927) $694,415 $1,787,342
Fund Balances - January 1 $4,226,072 $4,226,072 $9,099,335 $4,873,263
Change in Reserve for Inventory 0 0 (14,102) (14,102)
Fund Balances - December 31 $4,629,262 $3,133,145 $9,779,648 $6,646,503
During the year, the 2012 General Fund budget was increased from $47.4 million to $48.3 million, or by about
$0.9 million. The significant increases in appropriations are summarized as follows:
12 - Comprehensive Annual Financial Report (CAFR)
A- $200,000 in outstanding encumbrances / commitments which were rebudgeted from the prior year.
F. $500,000 to cover negotiated settlements for the primary Police Officer and Firefighter bargaining
units.
Most of these budget adjustments were to be funded from the General Fund reserves and /or reductions in
other expenditures.
General Fund Budget to Actual
Total General Fund revenues were budgeted at about $50.1 million. Actual revenue of $52.1 million resulted
in a variance of $1.7 million, a gain of 3.3% over the amended budget. The recession put downward pressure
on sales taxes, new construction / development fees, and interest earnings starting in 2009, and extending
through 2011. The 2012 budget was developed assuming these revenues would stay depressed, with the only
growth being the additional utility taxes imposed by Council. Fortunately, the agricultural sector of our
economy experienced a banner year, so actual results exceeded the original estimates. The original budget
also included an estimated reduction in state shared revenue (in the Intergovernmental category), due to
budgetary constraints at the state level. This revenue was reduced by the state from the prior year, but not as
extensively as originally proposed. Charges for services were less than budget estimates by $0.4 million
primarily because the internal charge for administrative services was re- examined and adjusted to more
accurately reflect the cost to non - General Fund operations.
General Fund expenditures, including other financing uses, totaled $51.4 million compared to the final
budget of $51.5 million — resulting in a positive variance of $0.1 million or 0.1 %. Because revenues exceeded
estimates and the General Fund balance exceeds the minimum 16.7% of operating expenditures, most of the
positive variance generated by position vacancies and other spending constraints was transferred to shore up
capital and risk management funds.
The General Fund budget is typically built assuming positive variances in both revenue and expenditures.
Revenue is conservatively estimated, while expenditure estimates utilize highest probable costs. Historically,
actual amounts have been close to "break even ", with actual revenues slightly exceeding expenditures. 2012
is not an exception, with a net increase in fund balance of about $0.7 million (about 0.1% of the total General
Fund budget).
CAPITAL ASSET AND DEBT ADMINISTRATION
Capital Assets
The City of Yakima's total investment in capital assets, including construction in progress, for its governmental
and business type activities as of December 31, 2012, amounts to $315.8 million (net of accumulated
depreciation). This investment in capital assets includes land, buildings, system improvements, machinery and
equipment, park facilities, infrastructure, and construction in progress on buildings and systems.
Major capital asset events during the 2012 fiscal year included the following:
F. A variety of projects for street expansion /repair were ongoing during the year. About $4.4
million was spent for infrastructure in 2012. In addition, the first phase of a railroad separation
was placed in service and moved out of construction in progress. The 2013 budget includes over
$22.5 million in planned projects, funded primarily by state and federal grants and loans,
matched by fuel tax and real estate excise tax. The major project continuing into 2013 is the
second phase of a railroad grade separation project estimated to cost about $12.2 million. City
Council also approved financing $5 million for road improvement projects in 2013, to be funded
by councilmanic bonded debt.
Comprehensive Annual Financial Report (CAFR) —13
.- In the area of Cultural & Recreational Environment, capital investments include Upper Kiwanis
Park in the amount of $1.3 million, funded by inter -local grants and donations, with an interfund
loan to complete the project.
.- Vehicles, street equipment, and trucks were added to the fleet as either additional equipment or
replacements during the year, at a cost of $2.0 million.
A- Wastewater invested $7.3 million on capital improvements in 2012, including work on an
anaerobic digester and related biogas enhancement projects, Struvite reactor tanks, and collection
system pipe installation /replacement. The 2013 budget includes $1.2 million for automated
reading system, $5.0 million for sanitary sewer line extension, repairs and lift station. About
$14.0 million is budgeted for facility treatment plant and equipment, in accordance with adopted
Facilities and Biosolids Management plans. These projects will be partially funded by
intergovernmental loans and the savings on debt service by refunding. When loan funding is
exhausted, a revenue bond will be issued to complete the projects. At this point in time, that will
likely be needed in 2014.
.- The Domestic Water Treatment plant capital program spent about $1.0 million in 2012. The 2013
budget includes $1.5 million for Water Treatment plant Lagoons (partly funded by a state Public
Works Trust Fund Loan), $3.0 million for automated meter reading (also partially by funded by
intergovernmental loan with the cost shared with wastewater), and $0.5 million for miscellaneous
system repairs /improvements (all funded by capital reserves and current capital transfers from
the operating fund).
.- About $1.4 million was spent on irrigation system rebuild projects in 2012, funded partially by an
interfund loan. The 2013 budget includes about $1.0 million for project continuation, funded by
current capital rates.
CAPITAL ASSETS (NET OF DEPRECIATION)
— Governmental Activities — — Business -Type Activities — Total
2012 2011 2012 2011 2012 2011
Capital Assets
Land $14,241,145 $13,993,225 $2,163,373 $2,163,373 $16,404,518 $16,156,598
Building 37,243,214 38,101,990 34,147,298 35,988,857 71,390,512 74,090,847
Impr Other Than Building 6,712,126 7,164,696 72,680,211 66,328,170 79,392,337 73,492,866
Machinery and Equipment 15,521,794 14,717,913 19,619,109 17,118,783 35,140,903 31,836,696
Infrastructure 92,713,816 71,649,132 0 0 92,713,816 71,649,132
Intangibles 0 0 115,659 115,659 115,659 115,659
Construction in Progress 7,582,846 28,973,806 13,015,187 15,010,578 20,598,033 43,984,384
Total Capital Assets $174,014,941 $174,600,762 $141,740,837 $136,725,420 $315,755,778 $311,326,182
Additional information on the City of Yakima's capital assets can be found in Note 4 of this report.
Long -Term Debt
On December 31, 2012, the City of Yakima had total bonded debt outstanding of almost $41.0 million. Of this
amount, $20.5 million is classified as governmental activity and backed by the full faith and credit of the City.
The remaining $20.5 million represents bonds secured solely by specific revenue sources (i.e. revenue bonds).
The City of Yakima's total bonded debt had a net decrease of $4.3 million during 2012, as debt service was
made in accordance with amortization schedules. The only activity in the area of bonded debt was to refund
a water and wastewater revenue bond, which resulted in an economic gain of $1.2 million and a reduction of
$180,000 in annual debt service payments.
14 — Comprehensive Annual Financial Report (CAFR)
The City participates in a loan program administered by the State's Department of Community Development,
which is included as Intergovernmental loans in the long -term debt schedules. Infrastructure improvements,
such as street, bridge, water, or sewage projects, are eligible to compete for loan awards. This type of funding is
preferred because the interest rates for new loans range from 0.5% to 1.5% based on the percentage of local
match available for the project (i.e. the higher the match, the lower the interest rate). In 2012, the City borrowed
$3.6 million for Water, Wastewater, and Railroad Grade Separation projects utilizing this State program.
The City's remaining capacity for non -voted debt on December 31, 2012, was approximately $60.4 million in
comparison to the total legal limit of $82.4 million. The City has a policy of retaining 70% of its non -voted
capacity for emergencies. The City of Yakima was upgraded in 2008 to an "A +" rating from Standard &
Poor's for general obligation debt. This rating was maintained throughout the recession, and was affirmed on
December 7, 2012. The combined Water and Wastewater utility was affirmed at "AA -" for the revenue bond
refunding accomplished in May 2012. A summary of the City's bonded debt follows. Additional information
on the City's long -term debt can be found in Note 7.
OUTSTANDING DEBT
— Governmental Activities — — Business -Type Activities — Total
2012 2011 2012 2011 2012 2011
General Obligation Bonds $20,501,653 $22,723,267 $0 $0 $20,501,653 $22,723,267
Revenue Bonds 0 0 20,525,000 22,610,000 20,525,000 22,610,000
Intergovernmental Loans 3,737,410 3,522,185 12,020,590 9,933,274 15,758,000 13,455,459
Special Assessment Debt 575,000 728,000 0 0 575,000 728,000
Unfunded Pen /OPEB Liability 13,365,341 11,563,719 0 0 13,365,341 11,563,719
Compensated Absences 7,018,769 6,550,630 0 0 7,018,769 6,550,630
Other Debt 820,843 1,221,768 406,361 253,531 1,227,204 1,475,299
Total Outstanding Debt $46,019,016 $46,309,569 $32,951,951 $32,796,805 $78,970,967 $79,106,374
ECONOMIC FACTORS
There are a number of factors that have a fiscal impact on various revenues of the City, including voter
approved initiatives over the last few years, as well as changes in State and Federal regulations. Following is
a list of significant factors, which have an impact on the City's revenues. The City is committed to the
continued application of sound fiscal management practices to ensure balanced budgets are maintained and
critical core services are provided to our citizens.
.- In 2001 state voters approved Initiative 747, which capped property tax levy growth each year at a
maximum of 1 %, plus any additions for annexations and new construction. This initiative represents
a restriction on local government revenue growth, which makes budget balancing more difficult
because actual inflation rates have grown at an average of 3 times the 1% limitation.
.- The Downtown area is in transition from a retail center to a central business district. The City has
actively participated in several projects to upgrade the downtown over the past 5 years, including
infrastructure and pedestrian improvements in the downtown core, and the upgrade /expansion of
the historic City owned Capitol Theatre, located in the center of the downtown area. The City has
recently engaged a consultant, Crandall Arambula, to prepare a Downtown Master Plan.
.- The unemployment rate (9.7% as of April, 2013) in the County continues to be higher than the state
and national average. The County's predominant industry is agriculture and related support. This
industry has a history of high unemployment rates, seasonal employment, and low median income
(Yakima is about 75% of the state average). However, the agriculture based local economy has not
been as negatively affected in this severe national recession as many other cities around the state and
country. Historically, the City's unemployment rate has run 3 - 3.5% above the national, but that gap
shrunk during the recent recession. Yakima County MSA is experiencing growth in total
Comprehensive Annual Financial Report (CAFR) —15
employment, but the rate is not improving because there is also growth in the Civilian Labor Force.
Between April of 2012 and 2013, the Yakima County nonfarm labor market added 1,000 jobs, a 1.3%
upturn. All employment categories, with the exception of "Professional and Business Services" and
"Government" experienced an increase from April of 2012.
F. Efforts to diversify our economic base include expansion of the current community college to offer
four -year degree programs through major state institutions, including Washington State University
and University of Washington. Additionally, a new medical school began instruction in late 2008 -
the first class graduated in May, 2011.
A- The next major economic development initiative that the City is embarking on is a competitive state
redevelopment /tax increment program called Local Infrastructure Financing Tool (LIFT), as set forth
in RCW 39.102. The redevelopment area consists of 556 acres adjacent to Interstate 82, formerly used
as a sawmill and plywood plant. The City received an award of up to $1 million per year for 25 years
from the state to support required infrastructure improvements to service the new mixed use
proposed development. 2009 was designated as the "base year ", and the City will receive the state's
increase of both sales and property taxes as they are realized. The project is currently in a planning
stage.
The 2013 budget is balanced for all funds, within guidelines established by city management, to accomplish
municipal service levels and priorities set by City Council. The City of Yakima has established a consistent
track record of living within our means. Over the past four years, as the economy has faltered and tax
revenues have declined, the City has made reductions in General Government programs, services and staff
levels in order to maintain a balance between revenues and expenditures. Each year since 2009, the City has
reduced spending and eliminated full time positions in the General Government (i.e. tax- supported) budget
to make ends meet. Fortunately, sales tax started an upward trend starting in July 2012. For the 2013 budget,
the major revenues were estimated assuming a slight uptick of the local economy, but budget reductions
were again incorporated to offset growth in expenditures such as fuel and medical inflation. To date, the
improvements in sales taxes are continuing, although other areas such as interest earnings are below budget.
Overall budget results are performing as expected.
REQUESTS FOR INFORMATION
This financial report is designed to provide a general overview of the City of Yakima's finances for all those
with an interest in the government's finances. This report, along with the City's published budget documents
are posted on the City's website at www.yakimawa.gov /services /finance. Questions concerning any of the
information provided in this report or requests for additional financial information should be addressed to:
City of Yakima — Finance Department, 129 North Second Street, Yakima, WA 98901.
16 — Comprehensive Annual Financial Report (CAFR)
BASIC FINANCIAL STATEMENTS
The basic financial statements and note disclosures comprise the minimum acceptable fair presentation in conformity
with Generally Accepted Accounting Principles (GAAP) Basic financial statements are designed to be "liftable" from
the Financial Section of the Comprehensive Annual Financial Report (CAFR) for widespread distribution to users
requiring less detailed information than is contained in the full CAFR. Basic Financial Statements include:
GOVERNMENT - WIDE FINANCIAL STATEMENTS
Statement of Net Position — City governmental and business type assets and liabilities, with the difference reported as
net position.
Statement of Activities — City governmental and business type revenues and expenses, with the difference reported as
change in net position.
FUND FINANCIAL STATEMENTS
Balance Sheet, Governmental Funds — Balance Sheets for major funds and aggregated amounts for all other
governmental funds. Includes the reconciliation of the Balance Sheet to the government -wide Statement of Net Position.
Statement of Revenues, Expenditures, and Changes in Fund Balances, Governmental Funds - Information for
each major fund and aggregated information for all other governmental funds.
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of
Governmental Funds to the Statement of Activities
Statement of Revenues, Expenditures, & Changes in Fund Balance, Budget & Actual, General /Community
Development Funds — Budget information, along with actual results for each major fund which has a legally adopted
budget.
Statement of Net Position, Proprietary Funds — Information on all assets and liabilities, with the difference reported as
change in net position for each of the enterprise funds, as well as a separate column of information for the internal service
funds.
Statement of Revenues, Expenses, and Changes in Fund Net Position, Proprietary Funds — Information for
each of the enterprise funds, as well as a separate column for aggregate information for internal service funds.
Statement of Cash Flows, Proprietary Funds — Information on the sources and uses of cash for each of the
enterprise funds and aggregate information for internal service funds.
Statement of Net Position, Fiduciary Funds — Information on the pension trust, fund assets and liabilities, with the
difference reported as net position.
Statement of Changes in Fund Net Position, Fiduciary Funds — Information on additions to and deductions from
the pension trust, with the difference reported as change in net position.
NOTES TO FINANCIAL STATEMENTS
Disclosure and further detail information to assist the reader in a better understanding of the financial statements and
the data presented within them.
REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Employer Contributions - Police and Fire pension.
Schedule of Funding Progress — Other Post Employment Benefits (OPEB)
Comprehensive Annual Financial Report (CAFR) —17
CITY OF i ltkir/c!t
STATEMENT OF NET POSITION
December 31, 2012
With comparative totals for December 31, 2011 Page 1 of 1
Governmental Business Type - Total -
Activities Activities 2012 2011
Assets
Cash and Cash Equivalents $13,332,783 $3,086,081 $16,418,864 $16,325,507
Investments at Amortized Cost 20,597,066 19,488,812 40,085,878 34,495,482
Receivables (Net) 9,264,218 3,399,418 12,663,636 10,548,012
Due from Other Government Units 1,315,791 394,716 1,710,507 5,933,771
Interfund Receivable 435,819 0 435,819 0
Notes Receivable 4,855,632 0 4,855,632 4,958,367
Inventories 598,356 225,926 824,282 677,151
Unamortized Debt Issue Cost 0 187,793 187,793 148,631
Restricted Assets
Cash and Cash Equivalents 79,972 910,490 990,462 1,075,157
Fiscal Agent 12,474 0 12,474 10,620
Investments at Amortized Cost 0 846,097 846,097 1,425,000
Capital Assets (Net of Accumulated Depreciation)
Land 14,241,145 2,163,373 16,404,518 16,156,598
Buildings 37,243,214 34,147,298 71,390,512 74,090,847
Improvements Other Than Buildings 6,712,126 72,680,211 79,392,337 73,492,866
Machinery & Equipment 15,521,794 19,619,109 35,140,903 31,836,696
Construction in Process 7,582,846 13,015,187 20,598,033 43,984,384
Intangibles 0 115,659 115,659 115,659
Infrastructure 92,713,816 0 92,713,816 71,649,132
Total Capital Assets 174,014,941 141,740,837 315,755,778 311,326,182
Total Assets $224,507,052 $170,280,170 $394,787,222 $386,923,880
Liabilities
Accounts Payable and Other Current Liabilities $8,452,456 $2,973,941 $11,426,397 $10,736,711
Accrued Liabilities 3,769,439 2,333,323 6,102,762 5,654,978
Due to Other Government Units 91,973 0 91,973 72,531
Interfund Payable 0 435,819 435,819 0
Liabilities Payable from Restricted Assets 932,477 0 932,477 558,423
Noncurrent Liabilities
Special Assessment Debt w /Gov't Commitment 575,000 0 575,000 728,000
Due Within One Year 2,982,389 2,347,670 5,330,059 5,131,292
Due in More than One Year 42,461,627 30,604,274 73,065,901 73,247,071
Total Liabilities 59,265,361 38,695,027 97,960,388 96,129,006
Net Position (See Note 9)
Invested in Capital Assets, Net of Related Debt 149,221,688 109,844,466 259,066,154 253,029,843
Restricted
Highways & Streets 1,760,263 0 1,760,263 1,801,950
Culture & Recreation 460,790 0 460,790 296,800
Debt Service 655,989 1,756,587 2,412,576 3,052,048
Capital Projects 6,247,456 0 6,247,456 6,711,552
Other Purposes 9,423,838 0 9,423,838 9,134,614
Unrestricted (2,528,333) 19,984,090 17,455,757 16,768,067
Total Net Position $165,241,691 $131,585,143 $296,826,834 $290,794,874
The Notes to the Financial Statements, found in the Basic Financial Section, are an integral part of this statement.
18 Comprehensive Annual Financial Report (CAFR)
CITY OF i ltki//c!t
STATEMENT OF ACTIVITIES
For the Year Ended December 31, 2012
With comparative totals for December 31, 2011 Page 1 of 1
Net (Expense) Revenue
-- Program Revenues - -- - -- and Changes in Net Position - -
Operating Capital Business
Charges for Grants & Grants & Gov't Type -Total - --
Functions /Programs Expenses Services Cont's Cont's Activities Activities 2012 2011
Governmental Activities
General Government $8,668,467 $9,062 $45,264 $0 ($8,614,141) $0 ($8,614,141) ($8,385,301)
Sec of Persons & Property 42,995,833 2,384,666 6,869,721 700,929 (33,040,517) 0 (33,040,517) (31,290,464)
Physical Environment 658,353 734,584 0 37,348 113,579 0 113,579 443,052
Transportation 11,529,609 232,164 1,872,506 3,326,910 (6,098,029) 0 (6,098,029) 4,135,886
Economic Environment 3,949,760 1,231,321 1,978,590 65,000 (674,849) 0 (674,849) (788,995)
Mental & Physical Health 23,859 0 0 0 (23,859) 0 (23,859) (21,794)
Cultural & Recreational Env 7,521,672 2,122,704 81,847 752,578 (4,564,543) 0 (4,564,543) (4,552,741)
Interest on Long -Term Debt 1,122,075 0 0 0 (1,122,075) 0 (1,122,075) (1,160,226)
Total Governmental Activities 76,469,628 6,714,501 10,847,928 4,882,765 (54,024,434) 0 (54,024,434) (41,620,583)
Business Type Activities
Transit $9,084,940 $1,047,305 $2,216,618 $62,285 $0 (5,758,732) (5,758,732) ($5,262,979)
Refuse 4,678,575 5,429,521 8,835 0 0 759,781 759,781 304,337
Wastewater 13,634,191 18,703,003 391,403 1,428,631 0 6,888,846 6,888,846 2,646,454
Water 5,834,230 8,599,003 10,985 524,502 0 3,300,260 3,300,260 1,762,074
Irrigation 1,891,067 2,901,243 0 0 0 1,010,176 1,010,176 833,727
Stormwater 1,317,927 2,183,484 85,110 102,566 0 1,053,233 1,053,233 1,544,962
Total Business Type Activities 36,440,930 38,863,559 2,712,951 2,117,984 0 7,253,564 7,253,564 1,828,575
Total $112,910,558 $45,578,060 $13,560,879 $7,000,749 (54,024,434) 7,253,564 (46,770,870) (39,792,008)
General Revenues
Taxes
Property Taxes 15,565,053 0 15,565,053 15,125,934
Sales and Use Taxes 19,599,338 4,762,435 24,361,773 22,794,949
Franchise and Utility Taxes 9,797,938 0 9,797,938 9,674,793
Excise Taxes 2,655,838 0 2,655,838 2,234,527
Penalties and Interest 0 0 0 617
Unrestricted Investment Earnings 309,075 11,348 320,423 281,574
Miscellaneous 41,541 0 41,541 32,952
Gain /Loss on Sale of Capital Assets 73,267 6,566 79,833 (677,482)
Transfers 6,172,065 (6,191,634) (19,569) (2)
Total General Revenues, Transfers, Special Item, and Extraordinary Item 54,214,115 (1,411,285) 52,802,830 49,467,862
Change in Net Position 189,681 5,842,279 6,031,960 9,675,854
Net Position - Beginning 165,052,010 125,742,862 290,794,872 281,159,443
Prior Period Adjustment 0 0 0 (40,425)
Net Position - Ending $165,241,691 $131,585,141 $296,826,832 $290,794,872
The Notes to the Financial Statements, found in the Basic Financial Section, are an integral part of this statement.
Comprehensive Annual Financial Report (CAFR) -19
CITY OF i ltkir/c!t
BALANCE SHEET
GOVERNMENTAL FUNDS
December 31, 2012
With comparative totals for December 31, 2011 Page 1 of 2
#000 #124 Other - -Total - --
General Community Governmental Governmental Funds
Fund Development Funds 2012 2011
Assets
Cash & Equity in Pooled Investments $4,864,345 $136,280 $6,409,364 $11,409,989 $8,579,963
Deposits w/ Fiscal Agent/Trustee 79,972 0 0 79,972 127,903
Receivables
Taxes 4,357,428 0 284,941 4,642,369 4,693,487
Accounts 1,435,712 0 179,816 1,615,528 1,933,860
Special Assessments 0 0 67,586 67,586 30,435
LID Assessments - Delinquent 0 0 52,314 52,314 46,049
LID Assessments - Deterred 0 0 503,206 503,206 658,092
Notes /Contracts 0 4,855,632 0 4,855,632 4,958,367
Interest /Penalties 93,773 0 0 93,773 151,226
Other Receivables 0 0 1,044,944 1,044,944 0
Due from Other Funds 1,199 0 0 1,199 0
Due from Other Government Units 174,652 453,535 687,604 1,315,791 3,705,772
Inventories 41,570 0 80,532 122,102 43,796
Investments, at Amortized Cost 5,435,302 0 8,005,387 13,440,689 12,997,482
Total Assets $16,483,953 $5,445,447 $17,315,694 $39,245,094 $37,926,432
Liabilities & Fund Balances
Liabilities
Warrants /Accounts Payable $1,176,584 $351,029 $980,535 $2,508,148 $2,076,172
Wages/Benetits Payable 3,805,398 45,665 890,817 4,741,880 4,484,586
Contracts Payable 0 0 70,239 70,239 70,976
Due to Other Funds 0 0 1,199 1,199 0
Due to Other Government Units 69,146 0 22,827 91,973 72,531
Mature Interest Payable 0 0 45,203 45,203 0
Mature Bonds Payable 0 0 101,614 101,614 0
Deposits Payable 75,798 0 394,056 469,854 787,880
Deterred Revenue 1,497,407 4,855,632 604,848 6,957,887 7,153,982
Custodial Accounts 79,972 0 852,505 932,477 558,423
Total Liabilities 6,704,305 5,252,326 3,963,843 15,920,474 15,204,550
The Notes to the Financial Statements, found in the Basic Financial Section, are an integral part of this statement.
20 Comprehensive Annual Financial Report (CAFR)
CITY OF i lt /ir/c!t
BALANCE SHEET
GOVERNMENTAL FUNDS
December 31, 2012
With comparative totals for December 31, 2011 Page 2 of 2
#000 #124 Other Total
General Community Governmental Governmental Funds
Fund Development Funds 2012 2011
Fund Balances (See Note 9)
Nonspendable 41,570 0 693,256 734,826 648,216
Restricted 0 193,121 8,601,156 8,794,277 10,346,861
Committed 0 0 3,082,179 3,082,179 1,842,615
Assigned 0 0 975,260 975,260 828,651
Unassigned 9,738,078 0 0 9,738,078 9,055,539
Total Fund Balances 9,779,648 193,121 13,351,851 23,324,620 $22,721,882
Total Liabilities and Fund Balances $16,483,953 $5,445,447 $17,315,694
Amounts reported for governmental activities in the statement of net assets are different because:
Capital assets used in governmental activities are not financial resources and, $164,199,917 $165,437,087
therefore, are not reported in the funds.
Other long -term assets are not available to pay for current - period expenditures 6,957,887 7,153,982
and, therefore, are deferred in the funds.
Internal service funds are used by management to charge the costs of services to 17,496,374 16,175,403
individual funds. The assets and liabilities of the internal service funds are
included in government activities in the statement of net assets.
Long -term liabilities, including bonds payable, are not due and payable in the (46,019,016) (46,309,569)
current period and therefore are not reported in the funds.
Interfund loans between Internal Service and Governmental Funds are not (600,000) 0
reported in the Governmental Fund
Accrued interest payable on General Obligation Debt (118,091) (126,775)
Net assets of governmental activities $165,241,691 $165,052,010
The Notes to the Financial Statements, found in the Basic Financial Section, are an integral part of this statement.
Comprehensive Annual Financial Report (CAFR) — 21
CITY OF i ltkir/c!t
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND
BALANCES - GOVERNMENTAL FUNDS
For the Year Ended December 31, 2012
With comparative totals for December 31, 2011 Page 1 of 2
#000 #124 Other - -Total - --
General Community Governmental Governmental Funds
Fund Development Funds 2012 2011
Revenues
Taxes and Special Assessments $41,847,570 $0 $11,837,155 $53,684,725 $48,743,924
Licenses and Permits 892,282 0 0 892,282 842,272
Intergovernmental Revenues 2,862,187 1,912,588 8,248,004 13,022,779 24,267,414
Charges for Services 4,676,966 236,475 1,386,127 6,299,568 7,934,394
Fines and Forfeits 1,512,477 0 30,000 1,542,477 1,599,946
Interest 309,075 31,396 167,893 508,364 380,329
Other Revenues 41,541 1,660 3,507,260 3,550,461 2,560,737
Total Revenues 52,142,098 2,182,119 25,176,439 79,500,656 86,329,016
Expenditures
Current
General Government $11,339,326 $0 $219,077 11,558,403 $11,885,686
Security of Persons and Property 34,783,683 0 5,941,336 40,725,019 37,766,582
Physical Environment 899,783 0 264,453 1,164,236 1,224,535
Transportation 0 0 5,406,096 5,406,096 5,454,883
Economic Environment 643,232 2,258,745 988,069 3,890,046 4,851,539
Mental & Physical Health 23,859 0 0 23,859 21,794
Cultural & Recreational Env 0 0 6,390,346 6,390,346 6,496,942
Capital Outlay
General Government 123,439 0 436,352 559,791 153,351
Security of Persons and Property 102,506 0 488,487 590,993 1,222,281
Physical Environment 0 0 0 0 365,635
Transportation 0 0 4,743,717 4,743,717 14,342,203
Economic Environment 0 0 0 0 37,745
Cultural & Recreational Env 0 0 848,268 848,268 1,025,822
Debt Service
Principal Retirement 37,416 0 2,973,001 3,010,417 2,752,793
Interest 9,693 0 1,121,066 1,130,759 1,165,128
Total Expenditures 47,962,937 2,258,745 29,820,268 80,041,950 88,766,919
Excess (Deficiency) of Revenues
Over (Under) Expenditures $4,179,161 ($76,626) ($4,643,829) ($541,294) ($2,437,903)
The Notes to the Financial Statements, found in the Basic Financial Section, are an integral part of this statement.
22 Comprehensive Annual Financial Report (CAFR)
CITY OF i ltkir/c!t
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND
BALANCES - GOVERNMENTAL FUNDS
For the Year Ended December 31, 2012
With comparative totals for December 31, 2011 Page 2 of 2
#000 #124 Other Total
General Community Governmental Governmental Funds
Fund Development Funds 2012 2011
Other Financing Sources (Uses)
Proceeds from Capital Lease Financing $0 $0 $0 $0 $576,846
Proceeds f /Intergovernmental Loans 0 0 450,101 450,101 1,592,143
Interfund Loan 0 0 600,000 600,000 0
Transfers In 40,000 0 6,180,589 6,220,589 4,936,104
Transfers (Out) (3,485,667) 0 (2,629,415) (6,115,082) (4,580,782)
Intergovernmental Agreements (39,095) 0 (58,425) (97,520) (97,520)
Sale of Capital Assets 0 0 6,122 6,122 15,000
Comp for Loss of Gen. Capital Assets 16 0 93,908 93,924 175,814
Total Other Financing Sources (Uses) (3,484,746) 0 4,642,880 1,158,134 2,617,605
Net Change in Fund Balances 694,415 (76,626) (949) 616,840 179,702
Fund Balances - January 1 9,099,335 269,747 13,352,800 22,721,882 22,553,436
Change in Reserve for Inventory (14,102) 0 0 (14,102) (11,256)
Fund Balances - December 31 $9,779,648 $193,121 $13,351,851 $23,324,620 $22,721,882
The Notes to the Financial Statements, found in the Basic Financial Section, are an integral part of this statement.
Comprehensive Annual Financial Report (CAFR) — 23
CITY OF i ltkir/c!t
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE
STATEMENT OF ACTIVITIES
For the Year Ended December 31, 2012
With comparative totals for December 31, 2011 Page 1 of 1
2012 2011
Net change in Lund balances as shown on Governmental Funds Statement of Revenues,
Expenditures, and Changes in Fund Balance: $616,840 $179,702
Governmental funds report capital outlays as expenditures. However, in the statement of
activities the cost of those assets is allocated over their estimated useful lives and
reported as depreciation expense. This is the amount by which capital outlays exceeded
depreciation in the current period. (2,360,604) 8,737,003
In the statement of activities, only the gain on the sale of Lund assets is reported, whereas
in the governmental funds, the proceeds from the sale increase financial resources. Thus,
the change in net assets ditters from the change in Lund balance by the cost of the Lund
assets. This also includes donations of capital assets and infrastructure obtained by
annexation. 1,123,432 232,104
Revenues in the statement of activities that do not provide current financial resources are
not reported as revenues in the funds. (196,095) (173,479)
Bond proceeds provide current financial resources to governmental funds, but issuing
debt increases long -term liabilities in the statement of net assets. Repayments of the bond
principal is an expenditure in the governmental funds, but the repayment reduces the
long -term liabilities in the statement of net assets. This is the amount by which proceeds
exceeded repayments. 1,960,314 583,802
Some expenses reported in the statement of activities do not require the use of current
financial resources and therefore are not reported as expenditures in governmental funds
(compensated absences, OPEB, inventory). (2,275,179) (1,514,918)
Internal service funds are used by management to charge the costs of services to
individual funds. The net revenue (expenses) of certain internal service funds is reported
with governmental activities. 1,320,971 (408,118)
Change in net assets, as reflected on the Statement of Activities $189,679 $7,636,096
The Notes to the Financial Statements, found in the Basic Financial Section, are an integral part of this statement.
24 Comprehensive Annual Financial Report (CAFR)
CITY OF i lt /ir/c!t
STATEMENT OF REVENUES, EXPENDITURES & CHANGES IN FUND
BALANCES - BUDGET & ACTUAL - GENERAL FUND
For the Year Ended December 31, 2012 Page 1 of 1
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
Revenues
Taxes and Special Assessments $40,437,500 $40,437,500 $41,847,570 $1,410,070
Licenses and Permits 616,700 616,700 892,282 275,582
Intergovernmental Revenues 2,016,230 2,316,230 2,862,187 545,957
Charges for Services 5,079,930 5,079,930 4,676,966 (402,964)
Fines and Forfeits 1,645,700 1,645,700 1,512,477 (133,223)
Interest 300,000 300,000 309,075 9,075
Other Revenues 33,550 33,550 41,541 7,991
Total Revenues 50,129,610 50,429,610 52,142,098 1,712,488
Expenditures
Current
General Government 11,571,558 11,787,788 11,339,326 448,462
Security of Persons and Property 34,129,946 34,759,404 34,783,683 (24,279)
Physical Environment 942,336 942,336 899,783 42,553
Economic Environment 668,101 668,101 643,232 24,869
Mental & Physical Health 22,000 22,000 23,859 (1,859)
Capital Outlay
General Government 15,000 65,429 123,439 (58,010)
Security of Persons and Property 0 0 102,506 (102,506)
Debt Service
Principal Retirement 37,416 37,416 37,416 0
Interest 9,693 9,693 9,693 0
Total Expenditures 47,396,050 48,292,167 47,962,937 329,230
Excess (Deficiency) of Revenues Over (Under) Expenditures $2,733,560 $2,137,443 $4,179,161 $2,041,718
Other Financing Sources (Uses)
Transfers In $40,000 $40,000 $40,000 $0
Transfers (Out) (2,331,275) (3,231,275) (3,485,667) (254,392)
Intergovernmental Agreements (39,095) (39,095) (39,095) 0
Comp for Loss of Gen. Capital Assets 0 0 16 16
Total Other Financing Sources (Uses) (2,330,370) (3,230,370) (3,484,746) (254,376)
Net Change in Fund Balances 403,190 (1,092,927) 694,415 1,787,342
Fund Balances - January 1 4,226,072 4,226,072 9,099,335 4,873,263
Change in Reserve for Inventory 0 0 (14,102) (14,102)
Fund Balances - December 31 $4,629,262 $3,133,145 $9,779,648 $6,646,503
The Notes to the Financial Statements, found in the Basic Financial Section, are an integral part of this statement.
Comprehensive Annual Financial Report (CAFR) - 25
CITY OF i ltkir/c!t
STATEMENT OF REVENUES, EXPENDITURES & CHANGES IN FUND
BALANCES - BUDGET & ACTUAL - COMMUNITY DEVELOPMENT FUND
For the Year Ended December 31, 2012 Page 1 of 1
Variance with
Final Budget
— Budgeted Amounts — Actual Positive
Original Final Amounts (Negative)
Revenues
Intergovernmental Revenues $1,503,201 $3,261,855 $1,912,588 ($1,349,267)
Charges for Services 270,000 270,000 236,475 (33,525)
Interest 26,700 26,700 31,396 4,696
Other Revenues 1,000 1,000 1,660 660
Total Revenues 1,800,901 3,559,555 2,182,119 (1,377,436)
Expenditures
Current
Economic Environment 1,831,765 3,590,419 2,258,745 1,331,674
Excess (Deficiency) of Revenues Over (Under) Expenditures ($30,864) ($30,864) ($76,626) (45,762)
Net Change in Fund Balances ($30,864) ($30,864) ($76,626) ($45,762)
Fund Balances - January 1 891,338 891,338 269,747 (621,591)
Fund Balances - December 31 $860,474 $860,474 $193,121 ($667,353)
The Notes to the Financial Statements, found in the Basic Financial Section, are an integral part of this statement.
26 Comprehensive Annual Financial Report (CAFR)
PROPRIETARY FUNDS
Proprietary Funds present information for each of the enterprise funds as well as a separate column for
aggregate information for internal service funds. Please refer to the Basic Financial Statements, found at the
beginning of this section.
Transit Funds (462 and 364) — Created on September 26, 1966, pursuant to the result of a special election
on September 20, 1966, ratifying Ordinance 821, which proposed that the City of Yakima lease, operate and
subsidize a City transit system. On October 1, 1970, the City assumed full management of the City transit
system. The system is subsidized by a .3% sales tax which became effective in November 1980 by the vote
of the citizens ratifying Ordinance 2469.
Wastewater and Water Funds (973 and 974) — Accounts for the provision of water and wastewater
services to the residents of the City and other outside utility agreements. All activities necessary to provide
such services are accounted for in these funds, including, but not limited to, administration, financing and
related debt service, billing and collection.
Irrigation Utility Fund (975) — Established in 1998 to replace the Special Revenue Fund titled Irrigation.
This fund is responsible for the operation, maintenance and reconstruction of the existing irrigation system.
Comprehensive Annual Financial Report (CAFR) — 27
CITY OF i ltkir/c!t
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
December 31, 2012
With comparative totals for December 31, 2011 Page 1 of 4
Business -Type Activities - Enterprise Funds
#462 & #364 #973 #974
Transit Wastewater Water
Assets
Current Assets
Cash & Equity in Pooled Investments $260,894 $1,393,681 $869,464
Deposits w/ Fiscal Agent /Trustee 0 0 0
Receivables:
Accounts /Taxes (Net) 869,166 1,242,618 430,991
Other Receivables 0 3,000 0
Interfund Loan Receivable 0 0 0
Due from Other Government Units 316,067 55,131 0
Inventories 0 0 225,926
Investments, at Amortized Cost 1,743,570 9,312,042 5,807,342
Total Current Assets 3,189,697 12,006,472 7,333,723
Noncurrent Assets
Restricted Assets
Cash 0 581,834 293,220
Investments 0 776,294 69,803
Land 1,307,989 583,270 173,614
Buildings 7,363,248 66,500,454 8,548,449
Other Improvements 1,303,562 47,578,535 46,294,146
Machinery & Equipment 9,598,970 20,034,174 2,858,730
Accumulated Depreciation (9,551,764) (67,135,939) (25,036,797)
Construction in Progress 0 10,459,226 431,916
Intangibles 0 0 221,830
Unamortized Debt Issue Costs 0 142,802 11,349
Total Noncurrent Assets 10,022,005 79,520,650 33,866,260
Total Assets $13,211,702 $91,527,122 $41,199,983
The Notes to the Financial Statements, found in the Basic Financial Section, are an integral part of this statement.
28 Comprehensive Annual Financial Report (CAFR)
CITY OF i ltkir/c!t
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
December 31, 2012
With comparative totals for December 31, 2011 Page 2 of 4
Business -Type Activities - Enterprise Funds Governmental Activities
Other Internal
#975 Enterprise Total Service
Irrigation Funds 2012 2011 Funds
$27,604 $534,438 $3,086,081 $4,756,206 $1,922,794
0 0 0 0 12,474
220,775 560,470 3,324,020 2,264,183 1,244,498
0 72,398 75,398 3,000 0
0 0 0 0 1,035,819
0 23,518 394,716 2,227,999 0
0 0 225,926 204,512 476,254
524,894 2,100,964 19,488,812 14,763,000 7,156,377
773,273 3,291,788 26,594,953 24,218,900 11,848,216
35,436 0 910,490 947,254 0
0 0 846,097 1,425,000 0
98,500 0 2,163,373 2,163,373 0
418,531 0 82,830,682 82,830,682 37,397
19,905,266 1,484,679 116,566,188 107,953,369 572,993
80,374 27,543 32,599,791 28,427,881 23,529,507
(3,835,935) (95,780) (105,656,215) (99,882,293) (14,324,873)
1,648,418 475,627 13,015,187 15,010,578 0
0 0 221,830 221,830 0
33,642 0 187,793 148,631 0
18,384,232 1,892,069 143,685,216 139,246,305 9,815,024
$19,157,505 $5,183,857 $170,280,169 $163,465,205 $21,663,240
The Notes to the Financial Statements, found in the Basic Financial Section, are an integral part of this statement.
Comprehensive Annual Financial Report (CAFR) - 29
CITY OF i ltkir/c!t
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
December 31, 2012
With comparative totals for December 31, 2011 Page 3 of 4
Business -Type Activities - Enterprise Funds
#462 & #364 #973 #974
Transit Wastewater Water
Liabilities
Current Liabilities
Warrants /Accounts Payable $132,952 $1,253,958 $100,240
Wages/Benefits Payable 345,568 472,853 225,347
Compensated Absences Payable 427,982 694,135 232,475
Claims and Judgments Payable 0 0 0
Accrued Payables 0 108,392 17,999
Deposits Payable 6,100 256,435 113,434
Interfund Payable 0 0 0
Current Portion Long -term Debt 0 709,724 302,946
Restricted Payables
Current Portion LT Debt 0 1,030,000 180,000
Total Current Liabilities 912,602 4,525,497 1,172,441
Noncurrent Liabilities
Bonds Payable 0 13,940,000 1,030,000
Unamortized Bond Discount /Premium 0 1,061,178 44,666
Deferred Amount On Debt Refunding 0 (576,883) (25,927)
Loans Payable - Long Term 0 7,288,126 3,719,783
Total Noncurrent Liabilities 0 21,712,421 4,768,522
Total Liabilities 912,602 26,237,918 5,940,963
Net Position
Invested in Capital Assets, Net of Related Debt (as restated) 10,022,005 55,661,985 28,233,770
Restricted for Debt Service 0 1,358,128 363,023
Unrestricted 2,277,095 8,269,091 6,662,227
Total Net Position $12,299,100 $65,289,204 $35,259,020
The Notes to the Financial Statements, found in the Basic Financial Section, are an integral part of this statement.
30 Comprehensive Annual Financial Report (CAFR)
CITY OF i ltkir/c!t
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
December 31, 2012
With comparative totals for December 31, 2011 Page 4 of 4
Business -Type Activities - Enterprise Funds Governmental Activities
Other Internal
#975 Enterprise Total Service
Irrigation Funds 2012 2011 Funds
$765 $199,499 $1,687,414 $1,419,359 $520,122
60,772 181,987 1,286,527 1,245,741 212,452
70,684 222,441 1,647,717 1,568,240 256,701
0 0 0 0 3,177,591
65,829 0 192,220 231,223 0
0 117,417 493,386 460,986 0
435,819 0 435,819 0
0 0 1,012,670 1,041,304 0
125,000 0 1,335,000 1,285,000 0
758,869 721,344 8,090,753 7,251,853 4,166,866
4,220,000 0 19,190,000 21,325,000 0
(96,669) 0 1,009,175 273,382 0
0 0 (602,810) (30,249) 0
0 0 11,007,909 8,902,357 0
4,123,331 0 30,604,274 30,470,490 0
4,882,200 721,344 38,695,027 37,722,343 4,166,866
14,034,636 1,892,069 109,844,465 105,681,034 9,815,024
35,436 0 1,756,587 2,372,254 0
205,233 2,570,444 19,984,090 17,689,574 7,681,350
$14,275,305 $4,462,513 $131,585,142 $125,742,862 $17,496,374
The Notes to the Financial Statements, found in the Basic Financial Section, are an integral part of this statement.
Comprehensive Annual Financial Report (CAFR) — 31
CITY OF i ltkir/c!t
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET
POSITION - PROPRIETARY FUNDS
For the Year Ended December 31, 2012
With comparative totals for December 31, 2011 Page 1 of 2
Business -Type Activities - Enterprise Funds
#462 & #364 #973 #974
Transit Wastewater Water
Operating Revenues
Charges for Services $1,047,305 $18,688,307 $8,473,552
Charges for Insurance 0 0 0
Employer Contributions 0 0 0
Employee Contributions 0 0 0
Other Operating Revenues 0 14,696 125,451
Total Operating Revenues 1,047,305 18,703,003 8,599,003
Operating Expenses
Operations and Maintenance 7,112,660 6,469,911 1,975,032
Administration /Overhead 871,964 2,546,975 2,117,783
Taxes 0 4,265,854 2,206,763
Depreciation /Amortization 1,100,316 3,227,625 1,117,398
Other Benefits 0 0 0
Total Operating Expenses 9,084,940 16,510,365 7,416,976
Operating Income (Loss) (8,037,635) 2,192,638 1,182,027
Non - Operating Revenues (Expenses)
Operating Grants and Subsidies 6,979,053 0 0
Interest Revenue 3,698 4,376 1,774
Other Non - Operating Revenues 62,285 391,403 10,985
Interest Expenses 0 (650,067) (80,051)
Amortization of Bond Payment Discount 0 17,585 1,232
Gain (Loss) on Capital Assets Disposition 6,566 0 0
Non - Operating Revenue Net of Expenses 7,051,602 (236,703) (66,060)
Income (Loss) Before Contributions and Transfers (986,033) 1,955,935 1,115,967
Capital Contributions 0 1,428,631 524,502
Transfers In 0 232,939 0
Transfers (Out) (10,000) (45,210) (64,497)
Change in Net Position (996,033) 3,572,295 1,575,972
Total Net Position - January 1 13,295,133 61,716,906 33,683,048
Prior Period Adjustments 0 0 0
Total Net Position - December 31 $12,299,100 $65,289,201 $35,259,020
The Notes to the Financial Statements, found in the Basic Financial Section, are an integral part of this statement.
32 Comprehensive Annual Financial Report (CAFR)
CITY OF i lt /ir/c!t
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET
POSITION - PROPRIETARY FUNDS
For the Year Ended December 31, 2012
With comparative totals for December 31, 2011 Page 2 of 2
Business -Type Activities - Enterprise Funds Governmental Activities
Other Internal
#975 Enterprise — Total— — Service
Irrigation Funds 2012 2011 Funds
$2,894,139 $7,608,372 $38,711,675 $32,908,838 $6,830,976
0 0 0 0 2,997,770
0 0 0 0 9,786,013
0 0 0 0 1,850,107
7,104 4,633 151,884 116,556 0
2,901,243 7,613,005 38,863,559 33,025,394 21,464,866
1,156,579 5,928,572 22,642,754 21,801,279 6,880,563
180,205 709,203 6,426,130 6,148,194 2,497,383
48,550 217,599 6,738,766 4,203,258 0
291,116 37,465 5,773,920 5,800,247 1,370,766
0 0 0 0 10,936,006
1,676,450 6,892,839 41,581,570 37,952,978 21,684,718
1,224,793 720,166 (2,718,011) (4,927,584) (219,852)
0 93,945 7,072,998 6,983,987 0
1,500 0 11,348 9,033 421,366
0 0 464,673 392,536 1,066,696
(206,952) 0 (937,070) (1,143,704) 0
(7,665) 0 11,152 (20,504) 0
0 0 6,566 (529,423) (40,647)
(213,117) 93,945 6,629,667 5,691,925 1,447,415
1,011,676 814,111 3,911,656 764,341 1,227,563
0 102,566 2,055,699 1,630,740 73,840
0 0 232,939 257,939 19,568
0 (238,308) (358,015) (613,263) 0
1,011,676 678,369 5,842,279 2,039,757 1,320,971
13,263,631 3,784,144 125,742,862 123,743,528 16,175,403
0 0 0 (40,423) 0
$14,275,307 $4,462,513 $131,585,141 $125,742,862 $17,496,374
The Notes to the Financial Statements, found in the Basic Financial Section, are an integral part of this statement.
Comprehensive Annual Financial Report (CAFR) — 33
CITY OF i ltkir/c!t
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For the Year Ended December 31, 2012
With comparative totals for December 31, 2011 Page 1 of 4
Business -Type Activities - Enterprise Funds
#462 & #364 #973 #974
Transit Wastewater Water
Cash Flows from Operating Activities
Cash Received from Customers $1,047,305 $18,176,113 $8,164,338
Contributions Received - Employer and Employee 0 0 0
Cash Paid to Suppliers for Goods and Services (4,247,342) (4,863,590) (2,285,024)
Cash Paid for Salaries and Benefits (3,689,985) (4,871,649) (2,323,905)
Other Operating Revenues Collected 0 14,696 125,451
Cash Paid to Claimants and Beneficiaries 0 0 0
Cash Paid in Lieu of Taxes 0 (3,508,656) (1,661,565)
Net Cash Provided by Operating Activities (6,890,022) 4,946,914 2,019,295
Cash Flows from Noncapital Financing Activities
Sales Tax Received 4,765,435 0 0
Operating Grants Received 4,052,754 0 0
Cash Advances to Other Funds 0 0 0
Transfers Out to Other Funds (10,000) 0 0
Net Cash Provided by Noncapital Financing Activities 8,808,189 0 0
Cash Flows from Capital Financing Activities
Proceeds from Public Works Trust/SIED Loan/Revenue Bonds 0 3,048,859 123,845
Cash Received for Debt Service from Other Governments 0 391,403 0
Cash Received from Disposal of Capital Assets 6,566 0 0
Cash Contributions in Aid of Construction 20,347 1,295,320 346,157
Principal Paid on Revenue Bonds 0 (1,654,777) (175,000)
Principal Paid on Public Works Trust/SIED Loan 0 (771,455) (313,347)
Capital Expenditures Paid (213,547) (7,265,087) (1,002,032)
Interest and Other Debt Service Paid 0 (686,140) (81,623)
Capital Grants Received 0 0 0
Other Non - Operating Capital Revenue 41,938 0 0
Transfer hi 0 232,939 0
Transfer Out 0 (45,210) (64,497)
Net Cash Used for Capital Financing Activities (144,696) (5,454,148) (1,166,497)
The Notes to the Financial Statements, found in the Basic Financial Section, are an integral part of this statement.
34 Comprehensive Annual Financial Report (CAFR)
CITY OF i lt /ir/c!t
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For the Year Ended December 31, 2012
With comparative totals for December 31, 2011 Page 2 of 4
Business -Type Activities - Enterprise Funds Governmental Activities
Other Internal
#975 Enterprise Total Service
Irrigation Funds 2012 2011 Funds
$2,843,434 $7,518,943 $37,750,133 $33,613,658 $6,984,317
0 0 0 0 14,003,730
(720,790) (3,929,625) (16,046,371) (15,119,007) (6,993,680)
(659,120) (2,026,947) (13,571,606) (13,510,316) (2,313,338)
7,104 4,633 151,884 116,556 0
0 0 0 0 (10,809,085)
0 (896,337) (6,066,558) (3,362,422) 0
1,470,628 670,667 2,217,482 1,738,469 871,944
0 15,735 4,781,170 4,733,152 0
0 0 4,052,754 264,195 1,063,466
0 0 0 0 (1,035,819)
0 0 (10,000) 0 0
0 15,735 8,823,924 4,997,347 27,647
979,000 0 4,151,704 575,286 0
0 0 391,403 365,828 0
0 0 6,566 25,506 88,525
0 0 1,661,824 827,598 0
(120,000) 0 (1,949,777) (1,765,001) 0
(543,181) 0 (1,627,983) (1,040,754) 0
(1,367,859) (443,795) (10,292,320) (7,493,240) (2,074,217)
(208,309) 0 (976,072) (1,159,107) 0
0 95,058 95,058 143,256 0
0 0 41,938 0 19,568
0 0 232,939 257,939 0
0 (238,308) (348,015) (613,263) 0
(1,260,349) (587,045) (8,612,735) (9,875,952) (1,966,124)
The Notes to the Financial Statements, found in the Basic Financial Section, are an integral part of this statement.
Comprehensive Annual Financial Report (CAFR) — 35
CITY OF i ltkir/c!t
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For the Year Ended December 31, 2012
With comparative totals for December 31, 2011 Page 3 of 4
Business -Type Activities - Enterprise Funds
#462 & #364 #973 #974
Transit Wastewater Water
Cash Flows from Investing Activities
Proceeds from Sale of Investment Securities 0 9,809,000 4,609,000
Interest Received on Investments 3,698 4,376 1,774
Purchase of Investment Securities (1,743,570) (10,088,336) (5,877,145)
Net Cash Provided by Investing Activities (1,739,872) (274,960) (1,266,371)
Net Increase (Decrease) in Cash and Cash Equivalents 33,599 (782,194) (413,573)
Cash and Cash Equivalents at Beginning of Year 227,295 2,757,709 1,576,257
Cash and Cash Equivalents at End of Year $260,894 $1,975,515 $1,162,684
Cash at the End of the Year
Operating Fund Cash $260,894 $1,393,681 $869,464
Revenue Bond Reserve Account Cash 0 475,755 278,889
Revenue Bond Redemption Account Cash 0 106,079 14,331
Total Cash at the End of the Year $260,894 $1,975,515 $1,162,684
Reconciliation of Net Operating Income (Loss) to Net Cash
Provided (Used) by Operating Activities
Net Operating Income (Loss) ($8,037,634) $2,192,638 $1,182,027
Adjustments to Reconcile Operating Income (Loss) to Net
Cash Provided by Operating Activities
Depreciation 1,100,316 3,227,625 1,117,398
Change in Assets and Liabilities
(Increase) Decrease in Accounts Receivable 0 (587,088) (350,149)
(Increase) Decrease in Deposits w/ Fiscal Agent /Trustee 0 0 0
Increase (Decrease) in Allowance for Uncollectibles 0 74,894 40,935
(Increase) Decrease in Inventory 0 0 (21,414)
Increase (Decrease) in Warrants /Accounts Payable 24,986 (18,021) 24,384
Increase (Decrease) in Wages/Benefits Payable 9,157 15,914 13,562
Increase (Decrease) in Compensated Absences Payable 13,154 40,952 12,552
Increase (Decrease) in Claims and Judgments Payable 0 0 0
Total Adjustments 1,147,613 2,754,276 837,268
Net Cash Provided by Operating Activities ($6,890,021) $4,946,914 $2,019,295
Schedule of Noncash Capital and Related Financing Activities
Capital Assets Acquired by Noncash Contributions $0 $78,180 $178,345
The Notes to the Financial Statements, found in the Basic Financial Section, are an integral part of this statement.
36 Comprehensive Annual Financial Report (CAFR)
CITY OF i lt /ir/c!t
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For the Year Ended December 31, 2012
With comparative totals for December 31, 2011 Page 4 of 4
Business -Type Activities - Enterprise Funds Governmental Activities
Other Internal
#975 Enterprise Total Service
Irrigation Funds 2012 2011 Funds
0 1,770,000 16,188,000 17,005,167 6,735,000
1,500 0 11,348 9,033 421,366
(524,894) (2,100,964) (20,334,909) (16,188,000) (7,156,377)
(523,394) (330,964) (4,135,561) 826,200 (11)
(313,115) (231,607) (1,706,890) (2,313,936) (1,066,544)
376,155 766,045 5,703,461 8,017,393 2,989,338
$63,040 $534,438 $3,996,571 $5,703,457 $1,922,794
$27,604 $534,438 $3,086,081 $4,756,206 $1,922,794
0 0 754,644 792,419 0
35,436 0 155,846 154,835 0
$63,040 $534,438 $3,996,571 $5,703,460 $1,922,794
$1,224,793 $720,166 ($2,718,010) ($4,927,586) ($219,852)
291,116 37,465 5,773,920 5,800,247 1,370,766
(60,957) (137,210) (1,135,404) 657,843 (476,819)
0 0 0 0 (1,854)
10,252 36,927 163,008 46,977 0
0 0 (21,414) 8,733 (47,411)
(735) 4,506 35,120 56,455 19,669
3,034 (881) 40,786 (25,078) (10,069)
3,125 9,694 79,477 120,878 (24,311)
0 0 0 0 261,825
245,835 (49,499) 4,935,493 6,666,055 1,091,796
$1,470,628 $670,667 $2,217,483 $1,738,469 $871,944
$0 $69,100 $325,625 $818,864 $0
The Notes to the Financial Statements, found in the Basic Financial Section, are an integral part of this statement.
Comprehensive Annual Financial Report (CAFR) - 37
CITY OF i lt/J/I1it
STATEMENT OF NET POSITION
FIDUCIARY FUNDS
December 31, 2012
With comparative totals for December 31, 2011 Page 1 of 1
Firemen's
Relief and Agency — Total —
Pension Fund 2012 2011
Assets
Cash & Equity in Pooled Investments $153,838 $383,580 $537,418 $306,090
Receivables - Accounts 0 15,679 15,679 $1,921
Investments, at Amortized Cost 764,671 0 764,671 626,000
918,509 399,259 1,317,768 934,011
Liabilities
Warrants /Accounts Payable 26,369 7,058 $33,427 98,717
Due to Other Governmental Units 0 392,201 392,201 42,113
26,369 399,259 425,628 140,830
Net Position
Held in Trust for Pension Benefits and Other Purposes $892,140 $0 $892,140 $793,181
The Notes to the Financial Statements, found in the Basic Financial Section, are an integral part of this statement.
38 Comprehensive Annual Financial Report (CAFR)
CITY OF i lt/J/I1it
STATEMENT OF CHANGES IN NET POSITION
FIDUCIARY FUNDS
December 31, 2012
With comparative totals for December 31, 2011 Page 1 of 1
— Firemen's Relief and Pension —
2012 2011
Additions
Employer Contributions $1,381,576 $1,480,299
Interest Revenue 10,000 500
Total Additions 1,391,576 1,480,799
Deductions
Administration /Overhead 42,225 40,895
Pension Benefits 711,585 639,355
Other Benefits 538,807 781,717
Total Deductions 1,292,617 1,461,967
Change in Net Position 98,959 18,832
Total Net Position, January 1 793,181 774,349
Total Net Position, December 31 $892,140 $793,181
The Notes to the Financial Statements, found in the Basic Financial Section, are an integral part of this statement.
Comprehensive Annual Financial Report (CAFR) — 39
NOTES TO THE FINANCIAL STATEMENTS
Year ended December 31, 2012
INDEX
NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 42
Reporting Entity 42
Government -Wide and Fund Financial Statements 43
Measurement Focus, Basis of Accounting & Financial Statement Presentation 43
Assets, Liabilities, Fund Balance and Net Position 45
NOTE 2 — RECONCILIATION OF GOVERNMENT -WIDE & FUND FINANCIAL
STATEMENTS 48
Explanation of Certain Differences Between the Governmental Funds Balance Sheet and the Government -
Wide Statement of Net Position 48
Explanation of Certain Differences Between the Governmental Funds Statement of Revenues,
Expenditures, and Changes in Fund Balances and the Government -Wide Statement of Activities 48
NOTE 3 — STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY 49
Budgets and Budgetary Accounting 49
Fund Equity 51
NOTE 4 — DETAILED NOTES ON ALL FUNDS 51
Deposits and Investments 51
Property Taxes 52
Receivables 53
Interfund Receivables, Payables and Transfers 54
Capital Assets 56
Commitments 58
NOTE 5 — PENSION PLANS 58
Public Employees' Retirement System (PERS) Plans 1, 2 & 3 59
Law Enforcement Officers' and Fire Fighters' Retirement System (LEOFF) Plans 1 and 2 63
Public Safety Employees' Retirement System (PSERS) Plan 2 66
Other Retirement Systems — Volunteer Firefighters' Relief and Pension Fund 68
Firemen's Pension 69
Police Pension 69
40 — Comprehensive Annual Financial Report (CAFR)
NOTE 6 — SELF - INSURANCE FUNDS 71
Unemployment Compensation 71
SELF - INSURED Medical / Dental Program 72
Workers' Compensation Program 72
Risk Management Program 72
NOTE 7 — LONG -TERM DEBT AND CAPITAL LEASES 74
General Obligation Debt 76
Revenue Bonds 77
Intergovernmental Loans and Contractual Agreements 77
Special Assessment Debt With Governmental Commitment 79
Lease Purchase Agreements 80
Unfunded Post Employment Benefit Liabilities 80
NOTE 8 — CONTINGENCIES AND LITIGATIONS 81
Section 108 Loan Program 81
Potential Litigation 81
NOTE 9 — FUND BALANCE CLASSIFICATION 82
NOTE 10 — SEGMENT INFORMATION 83
Water and Wastewater Utilities 83
NOTE 11 — JOINT VENTURES 84
Yakima Air Terminal 84
NOTE 12 — OTHER POSTEMPLOYMENT BENEFIT PLANS 85
Benefits Other Than Pension Benefit 85
LEOFF I Employees 85
Non -LEOFF I Employees 87
NOTE 13 — OTHER DISCLOSURES 89
Related Parties 89
Accounting and Reporting Changes 89
Subsequent Events 90
Change in Accounting Entity 90
Comprehensive Annual Financial Report (CAFR) — 41
NOTES TO THE FINANCIAL STATEMENTS
Year ended December 31, 2012
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accounting policies of the City of Yakima, Washington, conform to Generally Accepted Accounting
Principles (GAAP) as applicable to governmental units. The City has adopted the pronouncements of the
Governmental Accounting Standards Board (GASB) which is the accepted standard setting body for
establishing governmental accounting and financial reporting principles nationally. The following is a
summary of the more significant policies. The policies should be reviewed as an integral part of the financial
statements and are presented to assist the reader in interpreting the financial statements and other data in this
report.
REPORTING ENTITY
The City of Yakima was incorporated in 1886 and operates under a Council /Manager form of government
with a full -time City Manager. The City of Yakima provides a full range of municipal services, which
include: police, fire, engineering, parks, cemetery, street, and administrative services. Included in the City's
Enterprise Fund financial reports are: water, irrigation, sanitary wastewater, solid waste, stormwater and
transit. In 2012, the Yakima Air Terminal was operated under a joint venture agreement with Yakima County
(see Note 11).
The City's financial statements include all funds, agencies and boards which are financially accountable to the
City. Financial accountability is manifest when the primary government appoints the majority of an
organization's governing body and is able to impose its will on that organization or there is a potential for the
organization to provide specific financial burdens on the primary government. The primary government
may be financially accountable if an organization is fiscally dependent on the primary government regardless
of whether the organization has a separately elected governing board, a governing board appointed by a
higher level of government, or a jointly appointed board. An organization is fiscally dependent if it is unable
to determine its budget without another government having the substantive authority to approve or modify
the budget, to levy taxes or set rates or charges without substantive approval by another government, or to
issue bonded debt without substantive approval by another government. Applying these criteria, the
primary government consists solely of the legal entity of the City.
Related Organization — The City's officials are also responsible for appointing the members of the boards of
another organization, but the City's accountability for this organization does not extend beyond making the
appointments.
Yakima Housing Authority — The Yakima Housing Authority was created by Resolution No. D -1575, in 1971,
and, under certain conditions, can be dissolved by the City. Yet, it is an independent entity with distinct
governmental character and organization. The City of Yakima created the Housing Authority per
Washington State Revised Code Chapter 35.82 which provides that liabilities incurred by the Housing
Authority will be satisfied from its assets, and that no person shall have any right of action against the City on
account of its debts, obligations, and liabilities, except for a Contingent Loan Agreement dated October 1,
1998, for a single bond issue of $2.6 million.
Yakima Regional Public Facilities District — Although a separate legal entity, the City has elected to account
for the operations of the Public Facilities District, as a blended component unit, in two Nonmajor Special
42 — Comprehensive Annual Financial Report (CAFR)
Revenue Funds. The cities of Yakima, Selah and Union Gap originally formed a Public Facilities District
(PFD) for the purpose of expanding the Yakima Convention Center and in 2008 added expansion of the
Capitol Theatre. The City appoints a majority of the board members and must approve the annual budget.
The financial agreement stipulates that all revenue derived by the PFD (primarily two separate state sales tax
credits) be transferred to the City and the City will use these funds for the applicable project debt service and
operations, and reimbursement of administrative costs of the PFD.
GOVERNMENT -WIDE AND FUND FINANCIAL STATEMENTS
The government -wide financial statements consist of the statement of net assets and the statement of
activities. These statements report information on all of the non - fiduciary activities of the primary
government. For the most part, the effect of interfund activity has been removed from these statements.
Governmental activities, which normally are supported by taxes and intergovernmental revenues, are
reported separately from business type activities, which rely to a significant extent on fees and charges for
support.
The statement of activities demonstrates the degree to which the direct expenses of a given function or
segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific
function or segment. The City's policy is to allocate indirect costs to individual functions, if they are non -tax
supported.
Program revenues include: 1) charges to customers or applicants who purchase, use, or directly benefit from
goods, services, or privileges provided by a given function or segment; 2) fines and forfeitures; and 3) grants
and contributions that are restricted to meeting the operational or capital requirements of a particular
function or segment.
Taxes and other items not properly included among program revenues are reported instead as general
revenues.
Separate fund financial statements are provided for governmental funds, proprietary funds, and fiduciary
funds, even though the latter are excluded from the government -wide financial statements. Major individual
governmental funds and major individual enterprise funds are reported as separate columns in the fund
financial statements.
MEASUREMENT FOCUS, BASIS OF ACCOUNTING & FINANCIAL STATEMENT PRESENTATION
The government -wide financial statements are reported using the economic resources measurement focus
and the accrual basis of accounting, as are the proprietary fund and fiduciary fund financial statements.
Under this measurement focus, revenues are recorded when earned and expenses are recorded when a
liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues
in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all
eligibility requirements imposed by the provider have been met.
All governmental fund financial statements are reported using the "current financial resources" measurement
focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both
measurable and available. Revenues are considered to be available when they are collectible within the
current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City
considers revenues to be available if they are collected within sixty days of the end of the current fiscal
period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting.
However, debt service expenditures, as well as expenditures related to compensated absences and claims and
judgments, are recorded only when payment is due.
Certain charges for service, sales based taxes, and interest associated within the current period are considered
to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Only the
Comprehensive Annual Financial Report (CAFR) — 43
portion of special assessment receivable due within the current fiscal period is considered to be susceptible to
accrual as revenue of the current period. Grants are considered measurable and available to the extent that
expenditures have been made. Other intergovernmental revenues are considered measurable and available
when earned. Other revenues such as state shared revenue, licenses, fines and fees are not considered
susceptible to accrual since they are not generally measurable until received. Expenditures are generally
recognized when the related fund liability is incurred, as under accrual accounting. All other revenue items
are considered to be measurable and available only when cash is received by the City.
The City of Yakima reports the following major governmental funds:
A- The General Fund is the City's primary operating fund. It accounts for all financial resources of the
general government, except those required to be accounted for in another fund.
A- The Community Development Fund accounts for the Office of Neighborhood Development, which is
the focus of the City's effort to improve economic opportunities and housing conditions in Yakima.
Federal Housing and Urban Development grants are the major revenue source for this program.
The City reports the following enterprise funds as major funds:
p. The Transit Fund accounts for the operation of the City Transit System, funded primarily by 0.3%
sales tax, federal grants and fares.
A- The Water and Wastezaater Funds account for the provision of water and wastewater services to the
residents of the City and other outside utility agreements.
r The Irrigation Utility Fund is responsible for the operation, maintenance and reconstruction of the
existing irrigation system.
Additionally, the government reports the following fund types:
A- Internal Service Funds account for fleet management services, liability insurance, employee benefit
reserves, and public works administration services provided to other departments or agencies of the
government, or to other governments, on a cost reimbursement basis.
A- Pension Trust Funds are used to account for the operations of trust established for employee
retirement benefits. They are accounted for in essentially the same manner as proprietary funds
because of the need for determining the periodic income of the trust.
Private sector standards of accounting and financial reporting issued prior to December 1, 1989, generally are
followed in both the government -wide and proprietary fund financial statements to the extent that those
standards do not conflict with or contradict guidance of the Governmental Accounting Standards Boards.
Governments also have the option of the following subsequent private sector guidance for their business type
activities and enterprise funds, subject to this same limitation. The City has elected not to follow subsequent
private sector guidance.
As a general rule the effect of interfund activity has been eliminated from the government -wide financial
statements. Exceptions to this general rule are charges between the City's utility functions and various other
functions of the government. Elimination of these charges would distort the direct costs and program
revenues reported for the various functions concerned.
Amounts reported as program revenues include: 1) charges to customers or applicants for goods, services, or
privileges provided; 2) operating grants and contributions; and 3) capital grants and contributions, including
special assessments. Internally dedicated resources are reported as general revenues rather than as program
revenues. Likewise, general revenues include all taxes.
44 — Comprehensive Annual Financial Report (CAFR)
Proprietary funds distinguish operating revenues and expenses from non- operating items. Operating
revenues and expenses generally result from providing services and producing and delivering goods in
connection with proprietary funds' principal ongoing operations. The principal operating revenues of the
water, wastewater, refuse, stormwater and irrigation enterprise funds and of the government's internal
service funds are charges to customers for sales and services. Operating expenses for enterprise funds and
internal service funds include the cost of sales and services, administrative expenses, and depreciation on
capital assets. All revenues and expenses not meeting this definition are reported as non - operating revenues
and expenses.
When both restricted and unrestricted resources are available for use, it is the City's policy to use restricted
resources first, then unrestricted resources as they are needed.
ASSETS, LIABILITIES, FUND BALANCE AND NET POSITION
Cash and Cash Equivalents
Cash is considered to be cash on hand, demand deposits, and highly liquid investments with maturities of
three months or less from the date of acquisition. Included in this category are all funds held in the
Washington State Treasurer's Local Government Investment Pool (LGIP).
The LGIP is comparable to an SEC regulated Rule 2a -7 money market fund in which funds are limited to high
quality obligations with limited maximum and average maturities, the effect of which is to minimize both
market and credit risk.
Investments (Refer to Deposits and Investments Note 4.)
Receivables
Taxes receivable consists of property and other taxes including related interest and penalties (See Note 4).
Accrued interest receivable consists of amounts earned on investments, notes, and contracts as of year -end.
Special assessments are recorded when levied. Special assessments receivable consists of current and
delinquent assessments. Deferred assessments consist of unbilled special assessments that are liens against
the property benefited. Customer accounts receivable consists of amounts due from private individuals or
organizations for goods and services. Notes and contracts receivable consists of amounts owed on open
account from private individuals or organizations for goods and services rendered. The major component of
the notes receivable category is in the Community Development fund and represents a revolving home
ownership assistance program.
Amounts Due To and From Other Funds; Interfund Loans and Advances Receivable
These accounts include all interfund receivables and payables. A separate schedule of interfund loans
receivable and payable is furnished in Note 4 — Interfund Receivables. Long -term interfund loans are
separately identified as "Advances" — at December 31, 2012, there were no interfund advances.
Amounts Due To and From Other Governmental Units
These accounts include amounts due to or from other governments for grants, entitlements, temporary loans,
taxes and charges for services, except amounts billed for utility usage which is included in customer
receivables.
Inventories
Inventories in governmental funds consist of expendable supplies held for consumption. The cost is recorded
as an expenditure at the time individual inventory items are purchased. Inventories are included in the
"Nonspendable" category of fund balance, since it is a non -cash asset not available for future expenditure.
Comprehensive Annual Financial Report (CAFR) — 45
Inventories in the General Fund, Enterprise Funds and Internal Service Funds are valued at cost on a moving
average method.
Restricted Assets and Liabilities
These accounts contain resources for debt service reserve /redemption in the enterprise funds. The current
portion of related liabilities is shown as Payables from Restricted Assets. Specific debt service reserve
requirements are described in Note 7.
Capital Assets (See Note 4 — Capital Assets)
Capital assets, which include property, plant, equipment and infrastructure assets (i.e., roads, bridges,
sidewalks and similar items) are reported in the applicable governmental or business type columns in the
government -wide financial statements. Capital assets are defined by the City as assets with an initial,
individual cost of more than $5,000 and an estimated useful life in excess of two years. Such assets are
recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are
recorded at estimated fair market value at the date of donation.
Infrastructure assets are long lived assets that normally are stationary in nature and can be preserved for a
significantly greater number of years than most capital assets. Examples of infrastructure include roads,
bridges, drainage systems, water and wastewater systems, and lighting systems.
When capital assets are purchased, they are capitalized and depreciated in the government -wide financial
statements and the proprietary fund statements. Capital assets are recorded as expenditures of the current
period in the governmental fund financial statements.
The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend
assets' lives are not capitalized.
Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest
incurred during the construction phase of the capital assets of business type activities is included as part of
the capitalized value of the assets constructed.
Property, plant, and equipment of the City are depreciated using the straight line method over the following
estimated useful lives:
Buildings 25 - 40 Years
Improvements Other than Buildings 7 - 50 Years
Utility Plant 33 - 50 Years
Equipment 2 - 25 Years
Intangibles (Organization Costs and Goodwill) 75 -100 Years
Infrastructure 15 - 50 Years
Custodial Accounts
These accounts reflect the liability for net monetary assets being held by the City in its trustee or agency capacity.
Accrued Liabilities
Other accrued liabilities include primarily interest payable on long -term debt, Public Works Trust Loans and
small miscellaneous payables not classified in other categories in Enterprise Funds.
Deferred Revenues
This account includes amounts recognized as receivables but not as revenue in governmental funds because
the revenue recognition criteria have not been met. (See Note 1 — Measurement Focus)
46 — Comprehensive Annual Financial Report (CAFR)
Noncurrent Liabilities
Noncurrent liabilities include long -term debt, compensated absences and the cumulative unfinanced liability
related to post employment benefits. For additional information on long -term debt see Note 7.
Long -Term Obligations — In the government -wide financial statements, and proprietary fund types in the
fund financial statements, long -term obligations are reported as liabilities in the applicable governmental
activities, business type activities, or proprietary fund type statement of net assets. Bond premiums and
discounts, as issuance costs, are deferred and amortized over the life of the bonds using the effective interest
method. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs
are reported as deferred charges and amortized over the term of the related debt.
In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well
as bond issuance costs, during the current period. The bond proceeds, net of premiums, discounts and
issuance costs are reported as "other financing sources ".
Compensated Absences — Contracts with employees call for the accumulation of vacation and sick leave. At
termination of employment, employees may receive cash payment for all accumulated vacation up to a
certain number of hours and a percentage of sick leave, depending on employee group. The payment is
based on current wage at termination.
The amounts of unpaid vacation and sick leave accumulated by City employees are accrued as expenses
when incurred in proprietary funds, which use the accrual basis of accounting. In the governmental funds,
only the amounts that normally would be liquidated with expendable available financial resources are
accrued as current year expenditures. The City uses the last -in, first -out method of recognizing the hours
used of compensated absences. Employees are charged for the last day of vacation or sick leave earned when
the leave is used. Thus, unless it is anticipated that compensated absences will be used in excess of a normal
year's accumulation, no additional expenditures are accrued. Therefore, the entire unpaid liability for the
governmental funds is a reconciling item between the fund and government -wide presentations.
Fund Balance Classifications (See Note 9 — Fund Balance Classifications)
The City's fund balances are classified in accordance with Governmental Accounting Standards Board Statement
Number 54 (GASB 54), Fund Balance Reporting and Governmental Fund Type Definitions, which require the City
to classify its fund balances based on spending constraints imposed on the use of resources. The Net Position,
comprised of the fund balances, is the excess of all the city's assets over all liabilities, regardless of fund.
Nonspendable — Represents balances set aside to indicate items that do not represent available, spendable
resources even though they are a component of assets. Fund balances are required to be maintained intact
and include permanent funds and assets not expected to be converted to cash, such as inventories, and notes
receivable.
Restricted — Are funds that have external restrictions imposed by creditors, grantors, contributors, laws,
regulations, or enabling legislation which require the resources to be used only for a specific purpose.
Committed — These funds have constraints imposed by formal action of the City Council which may be
altered only by formal action of the City Council.
Assigned — Funds in this category are amounts constrained by the City to be used for a specific purpose, but
are neither restricted nor committed and may be changed by City Council.
Unassigned — This represents the residual amounts that have not been restricted, committed, or assigned.
Comprehensive Annual Financial Report (CAFR) — 47
NOTE 2 — RECONCILIATION OF GOVERNMENT -WIDE & FUND FINANCIAL
STATEMENTS
EXPLANATION OF CERTAIN DIFFERENCES BETWEEN THE GOVERNMENTAL FUNDS BALANCE
SHEET AND THE GOVERNMENT -WIDE STATEMENT OF NET POSITION
The governmental fund balance sheet includes reconciliation between fund balance — total government funds
and net assets — governmental activities as reported in the government -wide statement of net assets. One
element of that reconciliation explains that "long -term liabilities, including bonds payable, are not due and
payable in the current period and, therefore, are not reported in the funds." The details of this $46,019,016
difference are as follows:
Bonds Payable $20,501,653
Intergovernmental Loans 3,737,410
Contractual Agreements - Yakima County 300,692
Special Assessments - Note 575,000
Lease Purchase Agreements 520,151
Unfinanced Pension /OPEB Liability 13,365,341
Compensated Absences 7,018,769
Net Adjustments to reduce finrd balance - Total Governmental finrds to naive at net assets -
governnrental activities $46,019,016
EXPLANATION OF CERTAIN DIFFERENCES BETWEEN THE GOVERNMENTAL FUNDS
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES AND THE
GOVERNMENT -WIDE STATEMENT OF ACTIVITIES
The governmental fund statement of revenues, expenditures, and changes in fund balances includes
reconciliation between net changes in fund balances — total governmental funds and changes in net assets of
governmental activities as reported in the government -wide statement of activities. One element of that
reconciliation explains that "Governmental funds report capital outlays as expenditures. However, in the
statement of activities the cost of those assets is allocated over their estimated useful lives and reported as
depreciation expense." The details of this $2,360,604 difference are as follows:
Capital Outlay $6,742,769
Depreciation Expense (9,103,373)
Net adjustment to decrease net changes in find balances - total governmental finds to naive at
changes in net assets of governmental activities ($2,360,604)
Another element of that reconciliation states that "The net effect of various miscellaneous transactions
involving capital assets (i.e., sales, trade -ins, donations and physical inventory adjustments) is to increase net
assets." The details of this $1,123,432 difference are as follows:
In the statement of activities, only gain on the sale of capital assets is reported.
However, in the governmental funds, the proceeds from the sale increase
financial resources. Thus, the change in net assets differs from the change in
the fund balance by the cost of the capital assets sold. (26,779)
Donations of capital assets increase net assets in the statement of activities, but
do not appear in the governmental funds because they are not financial
resources. 1,150,211
Net adjustment to increase/(decrease)net changes in fund balances - total governmental finds
to naive at changes in net assets of governmental activities $1,123,432
48 — Comprehensive Annual Financial Report (CAFR)
Another element of that reconciliation states that "The issuance of long -term debt (e.g., bonds, leases)
provides current financial resources to governmental funds, while the repayment of the principal of long-
term debt consumes the current financial resources of governmental funds. Neither transaction, however,
has any effect on net assets." The details of this $2,560,314 difference are as follows:
Debt Issued
Intergovernmental Loan ($450,102)
Principal Repayments
General Obligation Debt 2,221,614
Intergovernmental Loans 234,877
Contractual Agreement - Yakima County 307,065
Special Assessment Notes 153,000
Lease Purchase Agreements 93,860
Net adjustment to increase net changes in fund balances - total governmental funds to arrive at
changes in net assets of governmental activities $2,560,314
Another element of that reconciliation states that "Some expenses reported in the statement of activities do
not require the use of current financial resources and, therefore, are not reported as expenditures in
governmental funds." The details of this $2,275,179 difference are as follows:
Compensated Absences ($468,139)
Change in Unfunded Pension Liability 103,040
Change in Other Post Employment Benefit Liability (1,904,662)
Change in Reserve for Inventory (14,102)
Accrued Interest Payable 8,684
Net adjustment to decrease net changes in fund balances - total governmental funds to arrive at
changes in net assets of governmental activities ($2,275,179)
NOTE 3 - STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
BUDGETS AND BUDGETARY ACCOUNTING
Scope of Budget
The City Council annually approves the City's operating budget. The operating budget is designed to
allocate annually available resources among the City's services and programs and to provide for associated
financing decisions.
Annual appropriated budgets are adopted on the modified accrual basis of accounting. For governmental
funds, there are no differences between budgetary basis and generally accepted accounting principles.
Budgetary accounts are integrated in fund ledgers for all budgeted funds, but the financial statements include
budgetary comparisons for the General Fund and Special Revenue Funds only. Budgets for debt service and
capital projects are adopted at the level of the individual debt issue or project and for fiscal periods that
correspond to the lines of debt issues or projects. Budgetary comparisons for proprietary funds, although not
legally required, may be requested from the Department of Finance and Budget.
Annual appropriated budgets are adopted at the fund level. Subsidiary revenue and expenditure ledgers are
used to compare the budgeted amounts with actual revenues and expenditures. As a management control
device, the subsidiary ledgers monitor expenditures for individual functions and activities by object class.
Appropriations for general and special revenue funds lapse at year end.
Comprehensive Annual Financial Report (CAFR) — 49
Procedures for Adopting the Original Budget
The City's budget procedures are mandated by Washington State Law. The steps in the budget process are as
follows:
• Prior to November 1, the City Manager submits a proposed budget to the City Council. This budget
is based on priorities established by the Council and estimates provided by City departments during
the preceding months and balanced with revenue estimates.
• The Council conducts a public hearing on the proposed budget in November to obtain taxpayer
comments.
• During December, the budget is legally enacted through passage of an ordinance.
Amending the Budget
The City Manager is authorized to transfer budgeted appropriations between departments within any fund;
however, any revisions that alter the total expenditures of a fund, or that affect the number of permanently
authorized employee positions, salary ranges, or other conditions of employment must be approved by the
City Council.
When the City Council determines that it is in the best interest of the City to increase or decrease the
appropriation for a particular fund, it may do so by an ordinance approved by a one more than simple
majority of those council members present after holding two public hearings.
The budget amounts shown in the financial statements represent the original adopted budget and all
supplemental appropriations. City -wide, supplemental appropriations totaled $20.7 million. The principal
amendments were to reappropriate 2012 outstanding encumbrances in the amount of $3.2 million; non-
lapsing appropriations for various projects in capital funds (Parks and Recreation Capital, Sewer
Construction, Domestic Water Improvement, and Wastewater Facilities totaling $12.3 million; and a transfer
from General Fund to the Yakima Redevelopment Area fund to be used for infrastructure planning and
design. Total for both funds is $1.8 million.
Excess of Expenditures over Appropriations
For the year ended December 31, 2012, expenditures exceeded appropriations in two separate funds:
F. The Streets and Traffic Operations budget was over budget by $38,428. This was primarily due to the
timing of expenditures originally planned to be funded by American Recovery Reinvestment Act
(ARRA) grant reimbursement. The lights were purchased within the time - frame, but not actually
installed, which made the purchase ineligible for grant funding. Revenues still exceeded expenditures
by $54,000.
.- The Transit Operating Fund exceeded budget by about $50,000, primarily due to unforeseen costs
associated with the new Ellensburg route. The good sales tax trend also applies to this fund, and the
ending balance is still above the 60 day reserve target.
Both of these overages were conveyed to City Council in the 2012 Year -end Budget Revenue and Expenditure
Report.
Encumbrances
Encumbrance accounting, under which purchase orders, contracts, and other commitments for the
expenditure of funds are recorded in order to reserve that portion of the applicable appropriation, is
employed as an extension of formal budgetary integration in the governmental funds. Encumbrances are
reported as reservations of fund balances since they do not constitute expenditures or liabilities. The City
reappropriates outstanding encumbrances in the subsequent year.
50 — Comprehensive Annual Financial Report (CAFR)
FUND EQUITY
Nonspendable Fund Balance in Permanent Funds
The fund balance of $612,724 in the Cemetery Trust Fund represents a portion of the amounts paid for
cemetery plots. Provisions of these sales require $120 of the sales price be held in trust and that the income on
the investment of these amounts be used to maintain the plots.
Fiduciary Fund Net Position
The Firemen's Relief and Pension Fund has Net Position held in Trust for Pension Benefits and other
purposes of $892,140 which represents the accumulated contributions made by the government through
property taxes (see Note 4) plus interest earnings and state fire insurance premium tax proceeds.
NOTE 4 — DETAILED NOTES ON ALL FUNDS
DEPOSITS AND INVESTMENTS
Deposits
The City of Yakima maintains deposit relationships with several Washington State commercial banks and
savings and loan institutions that are classified as Public Depositories (see below).
The Public Deposit Protection Commission of the State of Washington (PDPC) covers all deposits not insured by
the Federal Depository Insurance Corporation (FDIC). The PDPC is a statutory authority established under RCW
39.58. It constitutes a multiple financial institution collateral pool that insures public deposits. In such a pool, a
group of financial institutions holding public funds pledge collateral to a common pool. The PDPC provides
protection by maintaining strict standards as to the amount of public deposits financial institutions can accept, and
by monitoring the financial condition of all public depositories and optimizing collateralization requirements.
The City of Yakima had the following cash on hand and deposit balances on December 31, 2012:
Banks and Savings and Loan Institutions $14,143,750
Petty Cash and Other Imprest Funds 14,795
Local Government Investment Pool (LGIP) 3,800,678
Total $17,959,223
Custodial Credit Risk: Deposits — The custodial credit risk for deposits is the risk that, in the event of a
depository financial institution failure, the City's deposits with banks and savings and loan associations may
not be recovered. Because of the PDPC, the City's deposits are not subject to this risk.
The LGIP is comparable to a Rule 2a -7 money market fund recognized by the Securities and Exchange
Commission (SEC). Rule 2a -7 funds are limited to high quality obligations with limited maximum and
average maturities, the effect of which is to minimize both market and credit risk.
Foreign Currency Risk: Deposits — Foreign currency risk is the risk that changes in exchange rates will
adversely affect the fair value of an investment or a deposit. The City of Yakima does not participate in
making deposits or investments that are exposed to this type of risk.
Investments
Cash and investments are managed under the guidance of the City's Investment Policy (Resolution R2011-
134). The policy is based on the Model Investment Policy prepared by the Association of Public Treasurers of
Comprehensive Annual Financial Report (CAFR) — 51
the United States and Canada and applies to all financial assets of the City of Yakima (excluding the
Firemen's Relief and Pension Fund).
As of December 31, 2012, the City of Yakima had the following investments:
INVESTMENT PORTFOLIO
Weighted Weighted
Average Average
Maturity to Final
Fair Expected Maturity
Investment Types Value Call (Days) (Days) Rating
Federal Agency Securities $40,324,497 905 1,515 n/a
Local Government Agency Securities 547,150 901 901 Al, A
Certificates of Deposit - PDPC 250,000 778 778 n/a
Local Assessment Notes 575,000 n/a n/a n/a
Total Portfolio $41,696,647
Interest Rate Risk
In accordance with its adopted investment policy, the City manages its exposure to declines in fair value due
to rising interest rates by limiting the weighted average maturity of its cash and security portfolio as a whole.
Additionally, the City does not use derivatives, pass through obligations or other extremely interest rate
sensitive instruments in its portfolio. Weighted average maturity on callable securities is calculated using
both the expected call date and the final maturity date.
Credit Risk
State law, under RCW sections 35.39 and 39.59, limits investments that a Washington class 1 City may hold to:
(1) Direct and Indirect obligations of the US Government, (2) high quality Municipal Bonds of Washington
State or Cities and Towns within the State, (3) high quality General Obligation bonds of another State or City,
by Washington Administrative Code permission, not in the RCW's, (4) Bankers Acceptances and high quality
Commercial Paper as long as they hold one of the 2 highest Credit ratings issued by at least two nationally
recognized rating agencies, and the (4) State Treasurer's LGIP. The LGIP is a 2a7 like pool, and investments
in the pool are reported at the share price of 100% of dollars invested. The City's own adopted Investment
Policy adheres to the RCW's and also allows for investment in high quality Commercial Paper, Bankers
Acceptances and the LGIP (see Deposit Note for information on the LGIP).
Custodial Credit Risk
The City's investment Policy does not include Repurchase, Reverse - Repurchase agreements or securities
lending as allowable investment activity; therefore no custodial credit risk exists. All investments are held in
the City's name by a third party custodian through a Trust Agreement, with the exception of the LGIP and
LID Notes (see Deposit note for custodial risk details).
PROPERTY TAXES
The County Treasurer acts as an agent to collect property taxes levied within the county for all taxing
authorities. Collections are distributed after the end of each month, on the tenth day of the following month.
PROPERTY TAX CALENDAR
January 1 Taxes are levied and become an enforceable lien against properties.
February 14 Tax bills are mailed.
April 30 First of two equal installment payments is due.
May 31 Assessed value of property is established for next year's levy at 100% of market value.
October 31 Second installment is due.
52 - Comprehensive Annual Financial Report (CAFR)
During the year, property tax revenues are recognized when cash is collected. At year -end, property tax
revenues are recognized for collections in the hands of the County Treasurer at December 31st. No allowance
for uncollectible taxes is established because delinquent taxes are considered fully collectable.
The City is permitted by law to levy up to $3.60 per $1,000 of assessed valuation for general government
services, less a maximum levy of $.50/$1,000 for the Library District, beginning in 2007. This amount may be
reduced for either of the following reasons:
A- The Washington State Constitution limits total regular property tax levies to one - percent of assessed
valuation or $10 per $1,000 of value. If the tax levies of all districts exceed this amount, each is
proportionately reduced until the total is at or below the one percent limit.
A- Washington State law, RCW 84.55.010, limits the total dollar amount of regular property taxes that
may be levied annually to 101% of the highest levy in the three previous years (excluding new
construction, annexations and state assessed property).
Special levies approved by the voters are not subject to the above limitations.
For 2012, the City's regular tax levy was 3.0559 per $1,000 on a total assessed valuation of $5.6 billion, for a
total regular levy of $16,667,548. Included in the City's regular levy is an authorization to levy for the
Firemen's Relief and Pension Fund (see Note 5). This levy is subject to the same limitations as the levy for
general government services. The Firemen's Relief and Pension portion of the regular tax levy for 2012 was
$.2411 per $1,000, or $1,315,000. Additionally, special levies for General Obligation Bond obligations totaled
$293,000.
RECEIVABLES
Receivables as of year -end for the City's individual major funds, nonmajor, internal service and agency funds
in the aggregate, including applicable allowance for uncollectible accounts, are shown in the following chart.
ACCOUNTS RECEIVABLE
Special Due from Interest &
Taxes Accounts Assessments Other Gov is Penalties Other Total
General Fund $4,357,428 $1,435,712 $0 $174,652 $93,773 $0 $6,061,565
Corn & Econ Dev 0 4,855,632 0 453,535 0 0 5,309,167
Non -Major Gov't (1) 284,941 179,816 623,106 687,604 0 1,044,944 2,820,411
Transit 869,166 0 0 316,067 0 0 1,185,233
Refuse 0 515,136 0 0 0 515,136
Wastewater 0 1,242,618 0 55,131 0 3,000 1,300,749
Water 0 430,991 0 0 0 0 430,991
Irrigation 0 220,775 0 0 0 0 220,775
Stormwater 0 45,334 0 23,518 0 72,398 141,250
Internal Service Funds 0 1,244,498 0 0 0 435,819 1,680,317
Total $5,511,535 $10,170,512 $623,106 $1,710,507 $93,773 $1,556,161 $19,665,594
(1) Delinquent Local Improvement District (LID) assessments of $52,314 are included in the Special Assessment balance.
Revenues of the Water, Wastewater, Refuse and Irrigation funds are reported net of uncollectible amounts.
Total uncollectible amounts related to revenues of the current period of approximately 1% of billed revenue.
Comprehensive Annual Financial Report (CAFR) — 53
UTILITY REVENUES
Refuse $54,797
Wastewater 167,953
Water 85,422
Irrigation 29,234
Stormwater 22,262
Total $359,668
Governmental funds report deferred revenue in connection with receivables for revenues that are not
considered to be available to liquidate liabilities of the current period. Governmental funds also defer
revenue recognition in connection with resources that have been received, but not yet earned. At the end of
the current fiscal year, the various components of deferred revenue and unearned revenue reported in the
governmental funds are shown in the following chart.
DEFERRED REVENUES
Unavailable
General Fund
Court Receivables $1,351,334
WA State Office Public Defense 145,250
Miscellaneous 823
Community Economic Development - Homeownership Programs 4,855,632
Special Revenue Funds
Parks & Recreation - Pool & Field Rentals 7,209
Streets - Sidewalk Repairs 400
Community Relations - Equipment Reimbursement 1,600
Cemetery - Lot Sales 13,856
Parking & Business Improvement - Assessment Levied on Businesses in Boundaries 65,921
Front Street Business Improvement - Assessment Levied on Businesses in Boundaries 1,665
Debt Service Funds
LID Fund - Special Assessments Not Yet Due 503,206
Capital Project Funds
Central Bus Downtown - Parking Permits 120
Parks & Recreation Capital - Private Contributions 10,871
Total Deferred /Unearned Revenue for Governmental Funds $6,957,887
INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS
Classification of Interfund Transactions
Interfund transactions are classified as follows:
A- Transactions that would be treated as revenues, expenditures or expenses if they involved
external organizations, such as buying goods and services, are similarly treated when they
involve other funds of the City.
p. Transfers to support the operations of other funds are recorded as "Transfers" and classified with
"Other Financing Sources or Uses."
A- Contributions to the capital of enterprise or internal service funds (transfers between those funds
and the general capital assets account group), transfer to establish or reduce working capital in
other funds, and transfers of remaining balances when funds are closed are classified as transfers
and reported as non - operating revenues.
54 — Comprehensive Annual Financial Report (CAFR)
A- Loans between funds are classified as interfund loans receivable and payable or as advances to
and from other funds on the combined balance sheet depending on the time period for which the
loan was made. Interfund loans do not affect total fund equity, but advances to other funds are
offset by a reservation of fund equity. As of December 31, 2012, there were no advances to /from
any funds.
Interfund Loans and Receivables
The following table depicts the temporary cash overdrafts in individual funds as of December 31, 2012,
caused by timing of cash flow related to grant reimbursements.
Due From Due To
Other Other
Funds Funds
General Fund $1,199 $0
Special Revenue Funds
Recovery Grants Program 0 1,199
$1,199 $1,199
The City uses Interfund loans as a way to fund short term capital requirements. As Equipment Rental has
funds available for investment, it is typically used for these loans. Park and Recreation borrowed $600,000 in
2012 to complete a Ballfield complex project to be repaid over a 5 year term. The Irrigation fund borrowed
$979,000 early in 2012 for capital improvements and was able to pay down $543,181, leaving a balance of
$435,819 as of December. This will be completely repaid in 2013. An Interfund Loan policy sets forth
program parameters including interest rates.
Interfund Interfund
Loan Loan
Receivable Payable
Equipment Rental $1,035,819 $0
Parks Capital 0 600,000
Irrigation 0 435,819
$1,035,819 $1,035,819
Interfund Transfers
Interfund transfers represent subsidies and contributions provided to other funds with no corresponding
debt or promise to repay. General Fund transfers are primarily used to: 1) allocate the portion of utility taxes
that are designated to support Parks and Recreation and Law and Justice Capital programs; and 2) support
the Public Safety dispatch operation with a portion of the telephone tax. The Internal Service transfer in
Equipment Rental represents capital contributions from other funds to purchase new vehicle additions to the
rolling stock fleet. Other transfers generally represent debt service and capital project funding. The following
table depicts interfund operating transfer activity during 2012.
Comprehensive Annual Financial Report (CAFR) — 55
INTERFUND TRANSFERS
Transfer In
General Non Major Internal
Transfer out Fund Gov't Wastewater Services Total
General Fund $0 $3,485,667 $0 $0 $3,485,667
Non -Major Governmental 40,000 2,589,415 0 0 2,629,415
Transit 0 10,000 0 0 10,000
Wastewater 0 25,641 0 19,569 45,210
Water Operating Fund 0 31,558 32,939 0 64,497
Stormwater 0 38,308 200,000 0 238,308
Total $40,000 $6,180,589 $232,939 $19,569 $6,473,097
CAPITAL ASSETS
CAPITAL ASSET ACTIVITY
Balance Balance
1/1/12 Additions Adjustments Deletions 12/31/12
Governmental Activities
Capital Assets - Not Depreciated
Land $13,993,225 $68,400 $179,520 $0 $14,241,145
Construction in Progress 28,973,806 5,723,652 (27,114,612) 0 7,582,846
Total Capital Assets - Not Depreciated 42,967,031 5,792,052 (26,935,092) 0 21,823,991
Capital Assets - Depreciated
Buildings & Structures 56,659,081 450,222 0 (6,312) 57,102,991
Other Improvements 13,184,681 66,666 0 (4,507) 13,246,840
Equipment & Machinery 13,292,449 1,108,867 7,999 (1,156,352) 13,252,963
Infrastructure 219,555,174 475,174 26,927,094 0 246,957,442
Capitalized Leases 831,216 0 0 (189,004) 642,212
Total Capital Assets - Depreciated 303,522,601 2,100,929 26,935,093 (1,356,175) 331,202,448
Less Accumulated Depreciation
Buildings & Structures (18,570,358) (1,307,146) 0 6,312 (19,871,192)
Other Improvements (6,443,747) (643,167) 0 4,507 (7,082,407)
Equipment & Machinery (7,434,194) (766,610) 0 1,129,573 (7,071,231)
Infrastructure (147,906,042) (6,337,584) 0 0 (154,243,626)
Capitalized Leases (698,204) (48,866) 0 189,004 (558,066)
Total Accumulated Depreciation (181,052,545) (9,103,373) 0 1,329,396 (188,826,522)
Total Capital Assets - Depreciated Net 122,470,056 (7,002,444) 26,935,093 (26,779) 142,375,926
Gov't Activities Capital Assets - Net 165,437,087 (1,210,392) 1 (26,779) 164,199,917
56 — Comprehensive Annual Financial Report (CAFR)
Balance Balance
1/1/12 Additions Adjustments Deletions 12/31/12
Internal Service Funds - Governmental Activities
Capital Assets - Depreciated
Buildings 37,397 0 0 0 37,397
Other Improvements 442,707 130,286 0 0 572,993
Machinery 22,124,533 2,017,771 0 (612,797) 23,529,507
Total Capital Assets - Depreciated 22,604,637 2,148,057 0 (612,797) 24,139,897
Less Accumulated Depreciation
Buildings (24,130) (1,852) 0 0 (25,982)
Other Improvements (18,945) (6,355) 0 0 (25,300)
Machinery (13,397,887) (1,362,559) 0 486,855 (14,273,591)
Total Accumulated Depreciation (13,440,962) (1,370,766) 0 486,855 (14,324,873)
Total Capital Assets - Depreciated Net 9,163,675 777,291 0 (125,942) 9,815,024
Total Capital Assets - Gov't Activities $174,600,762 ($433,101) $1 ($152,721) $174,014,941
Business Type Activities
Capital Assets - Not Depreciated
Land $2,163,373 $0 $0 $0 2,163,373
Construction in Progress 15,010,578 9,792,178 (11,672,231) (115,338) 13,015,187
Total Capital Assets - Not Depreciated 17,173,951 9,792,178 (11,672,231) (115,338) 15,178,560
Capital Assets - Depreciated
Buildings & Structures 82,830,682 0 0 0 82,830,682
Other Improvements 107,953,368 861,753 7,751,065 0 116,566,186
Equipment & Machinery 28,427,881 250,744 3,921,166 0 32,599,791
Intangibles 221,830 0 0 0 221,830
Total Capital Assets - Depreciated 219,433,761 1,112,497 11,672,231 0 232,218,489
Less Accumulated Depreciation
Buildings & Structures (46,841,825) (1,841,559) 0 0 (48,683,384)
Other Improvements (41,625,198) (2,260,777) 0 0 (43,885,975)
Equipment & Machinery (11,309,098) (1,671,584) 0 0 (12,980,682)
Intangibles (106,171) 0 0 0 (106,171)
Total Accumulated Depreciation (99,882,292) (5,773,920) 0 0 (105,656,212)
Total Capital Assets - Depreciated Net 119,551,469 (4,661,423) 11,672,231 0 126,562,277
Total Capital Assets - Business Activities $136,725,420 $5,130,755 $0 ($115,338) $141,740,837
NOTE - The adjustment column represents construction works in progress that were completed and
classified into the appropriate capital asset category.
Comprehensive Annual Financial Report (CAFR) — 57
Depreciation expense was charged to functions /programs as follows:
General Government $172,623
Security of Persons and Property 975,503
Physical Environment 5,545
Transportation 6,548,373
Economic Environment 61,701
Cultural & Recreational Environment 1,339,628
Capital Assets held by the City's internal service funds are charged
to the various functions based on their usage of the assets 1,370,766
Total Depreciation - Governmental Activities $10,474,139
Transit $1,100,316
Wastewater 3,227,625
Water 1,117,398
Irrigation 291,116
Stormwater 37,465
Total Depreciation - Business -Type Activities $5,773,920
COMMITMENTS
Construction Commitments
The City had active construction projects as of December 31, 2012. The projects include improvements to the
Wastewater facility and collection system, the rebuilding of the irrigation system, and improvements to the
water distribution system. This also includes the widening and construction of existing streets and the
planning and design work on new infrastructure in the redevelopment area.
CURRENT CONSTRUCTION PROJECTS
Contract Spent to Remaining
Project Amount Date Commitment
Water $509,373 $379,078 $130,295
Irrigation System Design & Rebuild 171,513 113,461 58,052
Wastewater Treatment Plant and Mains 14,579,891 4,576,545 10,003,346
Street Construction 3,546,106 2,620,255 925,851
Total $18,806,883 $7,689,339 $11,117,544
Street construction is being financed by gas tax and federal, state or local grants. Wastewater improvements
are being financed by State Public Works Trust Fund and Revolving Fund loans and wastewater utility
revenues /capital reserves. Irrigation improvements are funded by irrigation capital rates /reserves.
NOTE 5 — PENSION PLANS
Substantially all City full -time and qualifying part -time employees participate in one of the following
statewide retirement systems administered by the Washington State Department of Retirement Systems,
under cost sharing multiple employer public employee defined benefit retirement plans. The Department of
Retirement Systems (DRS), a department within the primary government of the State of Washington, issues a
publicly available Comprehensive Annual Financial Report (CAFR) that includes financial statements and
required supplementary information for each plan. The DRS CAFR may be downloaded from the DRS
website at www.drs.wa.gov, or by writing to:
58 — Comprehensive Annual Financial Report (CAFR)
Department of Retirement Systems
Communications Unit
P.O. Box 48380
Olympia, WA 98504 -8380
The following disclosures are made pursuant to GASB Statement 27, Accounting for Pensions by State and Local
Government Employers, and No. 50, Pension Disclosures, an Amendment of GASB Statements No 25 and No 27
PUBLIC EMPLOYEES' RETIREMENT SYSTEM (PERS) PLANS 1, 2 & 3
Plan Description
The Legislature established PERS in 1947. Membership in the system includes: elected officials; state employees;
employees of the Supreme, Appeals, and Superior courts; employees of legislative committees; community and
technical colleges, college and university employees not participating in higher education retirement programs;
employees of district and municipal courts; and employees of local governments. Approximately 50 percent of
PERS salaries are accounted for by state employment. PERS retirement benefit provisions are established in
Chapters 41.34 and 41.40 RCW and may be amended only by the State Legislature.
PERS is a cost - sharing multiple - employer retirement system comprised of three separate plans for
membership purposes: Plans 1 and 2 are defined benefit plans and Plan 3 is a defined benefit plan with a
defined contribution component.
PERS members who joined the system by September 30, 1977 are Plan 1 members. Those who joined on or
after October 1, 1977 and by either, February 28, 2002 for state and higher education employees, or August 31,
2002 for local government employees, are Plan 2 members unless they exercised an option to transfer their
membership to Plan 3. PERS members joining the system on or after March 1, 2002 for state and higher
education employees, or September 1, 2002 for local government employees have the irrevocable option of
choosing membership in either PERS Plan 2 or Plan 3. The option must be exercised within 90 days of
employment. Employees who fail to choose within 90 days default to Plan 3. Notwithstanding, PERS Plan 2
and Plan 3 members may opt out of plan membership if terminally ill, with less than five years to live.
PERS is comprised of and reported as three separate plans for accounting purposes: Plan 1, Plan 2/3, and Plan
3. Plan 1 accounts for the defined benefits of Plan 1 members. Plan 2/3 accounts for the defined benefits of
Plan 2 members and the defined benefit portion of benefits for Plan 3 members. Plan 3 accounts for the
defined contribution portion of benefits for Plan 3 members. Although members can only be a member of
either Plan 2 or Plan 3, the defined benefit portions of Plan 2 and Plan 3 are accounted for in the same pension
trust fund. All assets of this Plan 2/3 defined benefit plan may legally be used to pay the defined benefits of
any of the Plan 2 or Plan 3 members or beneficiaries, as defined by the terms of the plan. Therefore, Plan 2/3
is considered to be a single plan for accounting purposes.
PERS Plan 1 and Plan 2 retirement benefits are financed from a combination of investment earnings and
employer and employee contributions. Employee contributions to the PERS Plan 1 and Plan 2 defined benefit
plans accrue interest at a rate specified by the Director of DRS. During DRS' Fiscal Year 2012, the rate was
five and one -half percent compounded quarterly. Members in PERS Plan 1 and Plan 2 can elect to withdraw
total employee contributions and interest thereon upon separation from PERS - covered employment.
PERS Plan 1 members are vested after the completion of five years of eligible service.
PERS Plan 1 members are eligible for retirement after 30 years of service, or at the age of 60 with five years of
service, or at the age of 55 with 25 years of service. The monthly benefit is 2 percent of the average final
Comprehensive Annual Financial Report (CAFR) — 59
compensation (AFC) per year of service, but the benefit may not exceed 60 percent of the AFC. The AFC is
the monthly average of the 24 consecutive highest -paid service credit months.
The monthly benefit is subject to a minimum for retirees who have 25 years of service and have been retired
20 years, or who have 20 years of service and have been retired 25 years. If a survivor option is chosen, the
benefit is reduced. Plan 1 members retiring from inactive status prior to the age of 65 may also receive
actuarially reduced benefits. Plan 1 members may elect to receive an optional COLA that provides an
automatic annual adjustment based on the Consumer Price Index. The adjustment is capped at 3 percent
annually. To offset the cost of this annual adjustment, the benefit is reduced.
PERS Plan 1 provides duty and non -duty disability benefits. Duty disability retirement benefits for
disablement prior to the age of 60 consist of a temporary life annuity. The benefit amount is $350 a month, or
two - thirds of the monthly AFC, whichever is less. The benefit is reduced by any workers' compensation
benefit and is payable as long as the member remains disabled or until the member attains the age of 60, at
which time the benefit is converted to the member's service retirement amount. A member with five years of
covered employment is eligible for non -duty disability retirement. Prior to the age of 55, the benefit amount is
2 percent of the AFC for each year of service reduced by 2 percent for each year that the member's age is less
than 55. The total benefit is limited to 60 percent of the AFC and is actuarially reduced to reflect the choice of
a survivor option. Plan 1 members may elect to receive an optional COLA amount (based on the Consumer
Price Index), capped at 3 percent annually. To offset the cost of this annual adjustment, the benefit is
reduced.
PERS Plan 1 members can receive credit for military service while actively serving in the military if such
credit makes them eligible to retire. Members can also purchase up to 24 months of service credit lost because
of an on- the -job injury.
The survivor of a PERS Plan 1 member who dies after having earned ten years of service credit has the option,
upon the member's death, of either a monthly survivor benefit or the lump sum of contributions plus interest.
PERS Plan 2 members are vested after the completion of five years of eligible service. Plan 2 members are
eligible for normal retirement at the age of 65 with five years of service. The monthly benefit is 2 percent of
the AFC per year of service. The AFC is the monthly average of the 60 consecutive highest -paid service
months. There is no cap on years of service credit; and a cost -of- living allowance is granted (based on the
Consumer Price Index), capped at 3 percent annually.
PERS Plan 2 members who have at least 20 years of service credit and are 55 years of age or older are eligible
for early retirement with a reduced benefit. The benefit is reduced by an early retirement factor (ERF) that
varies according to age, for each year before age 65.
PERS Plan 2 members who have 30 or more years of service credit and are at least 55 years old can retire
under one of two provisions:
A- With a benefit that is reduced by 3 percent for each year before age 65; or,
A- With a benefit that has a smaller (or no) reduction (depending on age) that imposes strider return -to-
work rules.
PERS Plan 2 retirement benefits are also actuarially reduced to reflect the choice, if made, of a survivor
option. The surviving spouse or eligible child(ren) of a PERS Plan 2 member who dies after having earned
ten years of service credit has the option of either a monthly benefit or a lump sum payment of the member's
contributions plus interest.
60 — Comprehensive Annual Financial Report (CAFR)
PERS Plan 3 has a dual benefit structure. Employer contributions finance a defined benefit component and
member contributions finance a defined contribution component. As established by Chapter 41.34 RCW,
employee contribution rates to the defined contribution component range from 5 percent to 15 percent of
salaries, based on member choice. There are currently no requirements for employer contributions to the
defined contribution component of PERS Plan 3.
PERS Plan 3 defined contribution retirement benefits are dependent upon the results of investment activities.
Members may elect to self - direct the investment of their contributions. Any expenses incurred in conjunction
with self - directed investments are paid by members. Absent a member's self - direction, PERS Plan 3
investments are made in the same portfolio as that of the PERS 2/3 defined benefit plan.
For DRS' fiscal year 2012, PERS Plan 3 employee contributions were $95.2 million, and plan refunds paid out
were $66.2 million.
The defined benefit portion of PERS Plan 3 provides members a monthly benefit that is 1 percent of the AFC
per year of service. The AFC is the monthly average of the 60 consecutive highest -paid service months. There
is no cap on years of service credit, and Plan 3 provides the same cost -of- living allowance as Plan 2.
Effective June 7, 2006, PERS Plan 3 members are vested in the defined benefit portion of their plan after ten
years of service; or after five years of service, if twelve months of that service are earned after age 44; or after
five service credit years earned in PERS Plan 2 by June 1, 2003. Plan 3 members are immediately vested in the
defined contribution portion of their plan.
Vested Plan 3 members are eligible for normal retirement at age 65, or they may retire early with the
following conditions and benefits:
A- If they have at least ten service credit years and are 55 years old, the benefit is reduced by an ERF that
varies with age, for each year before age 65.
A- If they have 30 service credit years and are at least 55 years old, they have the choice of a benefit that
is reduced by 3 percent for each year before age 65; or a benefit with a smaller (or no) reduction factor
(depending on age) that imposes stricter return -to -work rules.
PERS Plan 3 benefit retirement benefits are also actuarially reduced to reflect the choice, if made, of a survivor
option.
PERS Plan 2 and Plan 3 provide disability benefits. There is no minimum amount of service credit required
for eligibility. The Plan 2 monthly benefit amount is 2 percent of the AFC per year of service. For Plan 3, the
monthly benefit amount is 1 percent of the AFC per year of service. These disability benefit amounts are
actuarially reduced for each year that the member's age is less than 65, and to reflect the choice of a survivor
option. There is no cap on years of service credit, and a cost -of- living allowance is granted (based on the
Consumer Price Index) capped at 3 percent annually.
PERS Plan 2 and Plan 3 members may have up to ten years of interruptive military service credit; five years at
no cost and five years that may be purchased by paying the required contributions.
PERS Plan 2 and Plan 3 members who become totally incapacitated for continued employment while serving
the uniformed services, or a surviving spouse or eligible child(ren), may request interruptive military service
credit.
PERS Plan 2 and Plan 3 members can purchase up to 24 months of service credit lost because of an on- the -job
injury.
Comprehensive Annual Financial Report (CAFR) — 61
PERS members may also purchase up to five years of additional service credit once eligible for retirement.
This credit can only be purchased at the time of retirement and can be used only to provide the member with
a monthly annuity that is paid in addition to the member's retirement benefit.
Beneficiaries of a PERS Plan 2 or Plan 3 member with ten years of service who is killed in the course of
employment receive retirement benefits without actuarial reduction. This provision applies to any member
killed in the course of employment, on or after June 10, 2004, if found eligible by the Director of the
Department of Labor and Industries.
A one -time duty - related death benefit is provided to the estate (or duly designated nominee) of a PERS
member who dies in the line of service as a result of injuries sustained in the course of employment, or if the
death resulted from an occupational disease or infection that arose naturally and proximately out of the
member's covered employment, if found eligible by the Department of Labor and Industries.
Judicial Benefit Multiplier
From January 1, 2007 through December 31, 2007, judicial members of PERS were given the choice to elect
participation in the Judicial Benefit Multiplier (JBM) Program enacted in 2006. Justices and judges in PERS
Plan 1 and Plan 2 were able to make an irrevocable election to pay increased contributions that would fund a
retirement benefit with a 3.5 percent multiplier. The benefit would be capped at 75 percent of AFC. Judges in
PERS Plan 3 could elect a 1.6 percent of pay per year of service benefit, capped at 37.5 percent of AFC.
Members who chose to participate would: accrue service credit at the higher multiplier beginning with the
date of their election; be subject to the benefit cap of 75 percent of AFC; stop contributing to the Judicial
Retirement Account (JRA); pay higher contributions; and be given the option to increase the multiplier on
past judicial service. Members who did not choose to participate would: continue to accrue service credit at
the regular multiplier; not be subject to a benefit cap; continue to participate in JRA, if applicable; continue to
pay contributions at the regular PERS rate; and never be a participant in the JBM Program.
Newly elected or appointed justices and judges who chose to become PERS members on or after January 1,
2007, or who had not previously opted into PERS membership, were required to participate in the JBM
Program. Members required into the JBM program would: return to prior PERS Plan if membership had
previously been established; be mandated into Plan 2 and not have a Plan 3 transfer choice, if a new PERS
member; accrue the higher multiplier for all judicial service; not contribute to JRA; and not have the option to
increase the multiplier for past judicial service.
There are 1,184 participating employers in PERS. Membership in PERS consisted of the following as of the
latest actuarial valuation date for the plans of June 30, 2011:
Retirees and Beneficiaries Receiving Benefits 79,363
Terminated Plan Member Entitled to but Not Yet Receiving Benefits 29,925
Active Plan Members Vested 105,578
Active Plan Members Non - vested 46,839
Total 261,705
Funding Policy
Each biennium, the state Pension Funding Council adopts PERS Plan 1 employer contribution rates, PERS Plan 2
employer and employee contribution rates, and PERS Plan 3 employer contribution rates. Employee contribution
rates for Plan 1 are established by statute at 6 percent for state agencies and local government unit employees, and
at 7.5 percent for state government elected officials. The employer and employee contribution rates for Plan 2 and
the employer contribution rate for Plan 3 are developed by the Office of the State Actuary to fully fund Plan 2 and
the defined benefit portion of Plan 3. Under PERS Plan 3, employer contributions finance the defined benefit
portion of the plan and member contributions finance the defined contribution portion. The Plan 3 employee
62 — Comprehensive Annual Financial Report (CAFR)
contribution rates range from 5 percent to 15 percent, based on member choice. Two of the options are graduated
rates dependent on the employee's age.
As a result of the implementation of the Judicial Benefit Multiplier Program in January 2007, a second tier of
employer and employee rates was developed to fund, along with investment earnings, the increased retirement
benefits of those justices and judges that participate in the program.
The methods used to determine the contribution requirements are established under state statute in accordance
with Chapters 41.40 and 41.45 RCW.
The required contribution rates expressed as a percentage of current -year covered payroll, as of December 31, 2012,
are as follows:
Members Not Participating in JBM:
PERS Plan 1 PERS Plan 2 PERS Plan 3
Employer Contributions (1) 7.21% c 7 21 % (2) 7.21% (3)
Employee Contributions 6 00 % (4) 4.64 %(4) (5)
(1) The employer rates include the employer administrative expense tee currently set at 0.16 %.
(2) The employer rate tor state elected officials is 10.74% tor Plan 1 and 7.21% tor Plan 2 and Plan 3.
(3) Plan 3 defined benefit portion only
(4) The employee rate tor state elected officials is 7.50% tor Plan 1 and 4.64% tor Plan 2.
(5) Variable trom 5.0% minimum to 15.0% maximum based on rate selected by the PERS 3 member
Both the city and the employees made the required contributions. The city required contributions for the
years ended December 31 were as follows:
PERS Plan 1 PERS Plan 2 PERS Plan 3
2012 Contributions $80,387 $1,440,289 $320,028
2011 Contributions 87,318 1,250,567 270,108
2010 Contributions 88,319 1,098,305 213,590
LAW ENFORCEMENT OFFICERS' AND FIRE FIGHTERS' RETIREMENT SYSTEM (LEOFF) PLANS 1
AND 2
Plan Description
LEOFF was established in 1970 by the Legislature. Membership includes all full -time, fully compensated,
local law enforcement commissioned officers, firefighters and, as of July 24, 2005, emergency medical
technicians. LEOFF membership is comprised primarily of non -state employees, with Department of Fish
and Wildlife enforcement officers, who were first included prospectively effective July 27, 2003, being an
exception. LEOFF retirement benefit provisions are established in Chapter 41.26 RCW and may be amended
only by the State Legislature.
LEOFF is a cost - sharing multiple - employer retirement system comprised of two separate defined benefit
plans. LEOFF members who joined the system by September 30, 1977 are Plan 1 members. Those who joined
on or after October 1, 1977 are Plan 2 members.
Effective July 1, 2003, the LEOFF Plan 2 Retirement Board was established by Initiative 790 to provide
governance of LEOFF Plan 2. The Board's duties include adopting contribution rates and recommending
policy changes to the Legislature.
Comprehensive Annual Financial Report (CAFR) — 63
LEOFF retirement benefits are financed from a combination of investment earnings, employer and employee
contributions, and a special funding situation in which the state pays through state legislative appropriations.
Employee contributions to the LEOFF Plan 1 and Plan 2 defined benefit plans accrue interest at a rate
specified by the Director of DRS. During DRS' fiscal year 2012, the rate was five and one -half percent
compounded quarterly. Members in LEOFF Plan 1 and Plan 2 can elect to withdraw total employee
contributions and interest earnings upon separation from LEOFF - covered employment.
LEOFF Plan 1 members are vested after the completion of five years of eligible service. Plan 1 members are
eligible for retirement with five years of service at the age of 50. The benefit per year of service calculated as a
percent of final average salary (FAS) is as follows:
% of Final
Term of Service Avg. Salary
Twenty or More Years 2.0%
Ten Years, Less than Twenty Years 1.5%
Five Years, Less than Ten Years 1.0%
The FAS is the basic monthly salary received at the time of retirement, provided a member has held the same
position or rank for 12 months preceding the date of retirement. Otherwise, it is the average of the highest
consecutive 24 months' salary within the last 10 years of service. A cost -of- living allowance is granted (based
on the Consumer Price Index).
LEOFF Plan 1 provides death and disability benefits. Death benefits for survivors of Plan 1 members on
active duty consist of the following: (1) If eligible spouse, 50 percent of the FAS, plus 5 percent of FAS for
each eligible surviving child, with a limitation on the combined benefit of 60 percent of the FAS; or (2) If no
eligible spouse, eligible children receive 30 percent of FAS for the first child plus 10 percent for each
additional child, subject to a 60 percent limitation of FAS, divided equally.
A one -time duty - related death benefit is provided to the estate (or duly designated nominee) of a LEOFF Plan
1 member who dies as a result of injuries or illness sustained in the course of employment, or if the death
resulted from an occupational disease or infection that arose naturally and proximately out of the member's
covered employment, if found eligible by the Department of Labor and Industries.
The LEOFF Plan 1 disability allowance is 50 percent of the FAS plus 5 percent for each child up to a
maximum of 60 percent. Upon recovery from disability before the age of 50, a member is restored to service
with full credit for service while disabled. Upon recovery after the age of 50, the benefit continues as the
greater of the member's disability benefit or service retirement benefit.
LEOFF Plan 1 members may purchase up to five years of additional service credit once eligible for retirement.
This credit can only be purchased at the time of retirement and can be used only to provide the member with
a monthly annuity that is paid in addition to the member's benefit.
LEOFF Plan 2 members are vested after the completion of five years of eligible service.
Plan 2 members are eligible for retirement at the age of 53 with five years of service, or at age 50 with 20 years
of service. Plan 2 members receive a benefit of 2 percent of the FAS per year of service (the FAS is based on
the highest consecutive 60 months), actuarially reduced to reflect the choice of a survivor option. Members
who retire prior to the age of 53 receive reduced benefits. If the member has at least 20 years of service and is
age 50, the reduction is 3 percent for each year prior to age 53. Otherwise, the benefits are actuarially reduced
for each year prior to age 53. A cost -of- living allowance is granted (based on the Consumer Price Index),
capped at 3 percent annually.
64 — Comprehensive Annual Financial Report (CAFR)
LEOFF Plan 2 provides disability benefits. There is no minimum amount of service credit required for
eligibility. The Plan 2 benefit amount is 2 percent of the FAS for each year of service. Benefits are reduced to
reflect the choice of survivor option and for each year that the member's age is less than 53, unless the
disability is duty - related. If the member has at least 20 years of service and is age 50, the reduction is 3
percent for each year prior to age 53.
A disability benefit equal to 70 percent of their FAS, subject to offsets for workers' compensation and Social
Security disability benefits received, is also available to those LEOFF Plan 2 members who are
catastrophically disabled in the line of duty and incapable of future substantial gainful employment in any
capacity. Effective June 2010, benefits to LEOFF Plan 2 members who are catastrophically disabled include
payment of eligible health care insurance premiums.
Members of LEOFF Plan 2 who leave service because of a line of duty disability are allowed to withdraw 150
percent of accumulated member contributions. This withdrawal benefit is not subject to federal income tax.
Alternatively, members of LEOFF Plan 2 who leave service because of a line of duty disability may be eligible
to receive a retirement benefit of at least 10 percent of FAS and 2 percent per year of service beyond five
years. The first 10 percent of the FAS is not subject to federal income tax.
LEOFF Plan 2 retirees may return to work in an eligible position covered by another retirement system,
choose membership in that system and suspend their pension benefits, or not choose membership and
continue receiving pension benefits without interruption.
LEOFF Plan 2 members who apply for retirement may purchase up to five years of additional service credit.
The cost of this credit is the actuarial equivalent of the resulting increase in the member's benefit.
LEOFF Plan 2 members can receive service credit for military service that interrupts employment.
Additionally, LEOFF Plan 2 members who become totally incapacitated for continued employment while
serving in the uniformed services, or a surviving spouse or eligible child(ren), may request interruptive
military service credit.
LEOFF Plan 2 members may also purchase up to 24 consecutive months of service credit for each period of
temporary duty disability.
Beneficiaries of a LEOFF Plan 2 member who is killed in the course of employment receive retirement benefits
without actuarial reduction, if found eligible by the Director of the Department of Labor and Industries.
Benefits to eligible surviving spouses and dependent children of LEOFF Plan 2 members killed in the course
of employment include the payment of on -going health care insurance premiums paid to the Washington
state Health Care Authority.
A one -time duty - related death benefit is provided to the estate (or duly designated nominee) of a LEOFF Plan
2 member who dies as a result of injuries or illness sustained in the course of employment, or if the death
resulted from an occupational disease or infection that arose naturally and proximately out of the member's
covered employment, if found eligible by the Department of Labor and Industries.
Legislation passed in 2009 provides to the Washington- state - registered domestic partners of LEOFF Plan 2
members the same treatment as married spouses, to the extent that the treatment is not in conflict with federal
laws.
There are 373 participating employers in LEOFF. [11 Membership in LEOFF consisted of the following as of
the latest actuarial valuation date for the plans of June 30, 2011:
Comprehensive Annual Financial Report (CAFR) — 65
Retirees and Beneficiaries Receiving Benefits 9,947
Terminated Plan Member Entitled to but Not Yet Receiving Benefits 656
Active Plan Members Vested 13,942
Active Plan Members Non - vested 3,113
Total 27,658
Funding Policy
Employer and employee contribution rates are developed by the Office of the State Actuary to fully fund the
plans. Starting on July 1, 2000, Plan 1 employers and employees contribute zero percent as long as the plan
remains fully funded. Plan 2 employers and employees are required to pay at the level adopted by the
LEOFF Plan 2 Retirement Board.
The Legislature, by means of a special funding arrangement, appropriates money from the state General
Fund to supplement the current service liability and fund the prior service costs of Plan 2 in accordance with
the recommendations of the Pension Funding Council and the LEOFF Plan 2 Retirement Board. However,
this special funding situation is not mandated by the state constitution and this funding requirement could be
returned to the employers by a change of statute. For DRS' fiscal year 2012, the state contributed $52.8
million to LEOFF Plan 2.
The methods used to determine the contribution requirements are established under state statute in
accordance with Chapters 41.26 and 41.45 RCW.
The required contribution rates expressed as a percentage of current -year covered payroll, as of December 31,
2012, are as follows:
LEOFF Plan 1 LEOFF Plan 2
Employer Contributions ( 0 16% 5.24% (
Employee Contributions 0 00% 8 46%
State N/A 3.38%
(1) The employer rates include the employer administrative expense fee currently set at 0.16 %.
(2) The employer rate for ports and universities is 8.62 %.
Both the city and the employees made the required contributions. The city required contributions for the
years ended December 31 were as follows:
LEOFF Plan 1 LEOFF Plan 2
2012 Contributions $474 $1,023,087
2011 Contributions 536 986,431
2010 Contributions 621 1,012,134
PUBLIC SAFETY EMPLOYEES' RETIREMENT SYSTEM (PSERS) PLAN 2
Plan Description
PSERS was created by the 2004 Legislature and became effective July 1, 2006. PSERS retirement benefit
provisions have been established by Chapter 41.37 RCW and may be amended only by the State Legislature.
PSERS is a cost - sharing multiple - employer retirement system comprised of a single defined benefit plan,
PSERS Plan 2.
66 — Comprehensive Annual Financial Report (CAFR)
PSERS membership includes:
A- Full -time employees hired by a covered employer before July 1, 2006, who met at least one of the
PSERS eligibility criteria and elected membership during the period of July 1, 2006 to September 30,
2006; and
A- Full -time employees, hired on or after July 1, 2006 by a covered employer, that meet at least one of
the PSERS eligibility criteria.
A covered employer is one that participates in PSERS. Covered employers include the following:
A- State of Washington agencies: Department of Corrections, Department of Natural Resources,
Gambling Commission, Liquor Control Board, Parks and Recreation Commission, and Washington
State Patrol;
A- Washington State counties;
A- Washington State cities except for Seattle, Tacoma and Spokane; and
A- Correctional entities formed by PSERS employers under the Interlocal Cooperation Act.
To be eligible for PSERS, an employee must work on a full -time basis and:
A- Have completed a certified criminal justice training course with authority to arrest, conduct criminal
investigations, enforce the criminal laws of Washington and carry a firearm as part of the job; or
A- Have primary responsibility to ensure the custody and security of incarcerated or probationary
individuals; or
A- Function as a limited authority Washington peace officer, as defined in RCW 10.93.020; or
A- Have primary responsibility to supervise eligible members who meet the above criteria.
PSERS retirement benefits are financed from a combination of investment earnings and employer and
employee contributions. Employee contributions to the plan accrue interest at a rate specified by the Director
of DRS. During DRS' fiscal year 2012, the rate was five and one -half percent compounded quarterly.
Members in PSERS Plan 2 can elect to withdraw total employee contributions and interest thereon upon
separation from PSERS - covered employment.
PSERS Plan 2 members are vested after completing five years of eligible service.
PSERS members may retire with a monthly benefit of 2 percent of the average final compensation (AFC) at
the age of 65 with five years of service, or at the age of 60 with at least 10 years of PSERS service credit, or at
age 53 with 20 years of service. The AFC is the monthly average of the member's 60 consecutive highest -paid
service credit months. There is no cap on years of service credit; and a cost -of- living allowance is granted
(based on the Consumer Price Index), capped at 3 percent annually.
PSERS members who retire prior to the age of 60 receive reduced benefits. If retirement is at age 53 or older
with at least 20 years of service, a 3 percent per year reduction for each year between the age at retirement
and age 60 applies.
PSERS Plan 2 provides disability benefits. There is no minimum amount of service credit required for
eligibility. The monthly benefit is 2 percent of the AFC for each year of service. The AFC is based on the
member's 60 consecutive highest creditable months of service. Benefits are actuarially reduced for each year
that the member's age is less than 60 (with ten or more service credit years in PSERS), or less than 65 (with
fewer than ten service credit years). There is no cap on years of service credit, and a cost -of- living allowance
is granted (based on the Consumer Price Index), capped at 3 percent annually.
PSERS Plan 2 members can receive service credit for military service that interrupts employment. Additionally,
PSERS members who become totally incapacitated for continued employment while serving in the uniformed
services, or a surviving spouse or eligible child(ren), may request interruptive military service credit.
Comprehensive Annual Financial Report (CAFR) — 67
PSERS members may also purchase up to 24 consecutive months of service credit for each period of
temporary duty disability.
Beneficiaries of a PSERS Plan 2 member with ten years of service who is killed in the course of employment
receive retirement benefits without actuarial reduction. This provision applies to any member killed in the
course of employment, if found eligible by the Director of the Department of Labor and Industries.
A one -time duty - related death benefit is provided to the estate (or duly designated nominee) of a PSERS
member who dies as a result of injuries or illness sustained in the course of employment, or if the death
resulted from an occupational disease or infection that arose naturally and proximately out of the member's
covered employment, if found eligible by the Department of Labor and Industries.
There are 76 participating employers in PSERS. [11 Membership in PSERS consisted of the following as of the
latest actuarial valuation date for the plan of June 30, 2011:
Retirees and Beneficiaries Receiving Benefits 15
Terminated Plan Member Entitled to but Not Yet Receiving Benefits 1
Active Plan Members Vested 167
Active Plan Members Non - vested 4,020
Total 4,203
Funding Policy
Each biennium, the state Pension Funding Council adopts Plan 2 employer and employee contribution rates.
The employer and employee contribution rates for Plan 2 are developed by the Office of the State Actuary to
fully fund Plan 2. The methods used to determine the contribution requirements are established under state
statute in accordance with Chapters 41.37 and 41.45 RCW.
The required contribution rates expressed as a percentage of current -year covered payroll, as of December 31,
11 2012, are as follows:
PSERS Plan 2
Employer Contributions ( 8.87%
Employee Contributions 6.36%
(1) The employer rates include the employer administrative expense fee currently set at 0.16 %.
Both the city and the employees made the required contributions. The city's) required contributions for the
years ended December 31 were as follows:
PSERS Plan 2
2012 Contributions $61,711
2011 Contributions 50,797
2010 Contributions 53,069
OTHER RETIREMENT SYSTEMS - VOLUNTEER FIREFIGHTERS' RELIEF AND PENSION FUND
The Volunteer Firefighters' Relief and Pension Fund System is a cost sharing multiple employer retirement
system which was created by the Legislature in 1945 under Chapter 41.16 RCW. It provides pension,
disability and survivor benefits. Membership in the system requires service with a fire department of an
electing municipality of Washington State except those covered by LEOFF. The system is funded through
member contributions of $30 per year, employer contributions of $30 per year, forty - percent of the Fire
Insurance Premium Tax, and earnings from the investment of moneys by the Washington State Investment
Board. However, members may elect to withdraw their contribution upon termination.
68 — Comprehensive Annual Financial Report (CAFR)
FIREMEN'S PENSION
The City has a single employer, defined benefit pension plan for Firefighters employed prior to March 1,
1970, and governed by Washington State Law RCW 41.26. Under the terms of the governing law, the pension
member is entitled to payment from the City's pension plan for those benefits in excess of those calculated
under the LEOFF plan.
The City's Firemen's Pension Fund is a closed group. No new members are permitted. Employees attaining
the age of fifty who have completed 25 or more years of service are entitled to annual benefits of fifty - percent
of their salary plus an additional two - percent for each year of service in excess of 25 years, up to a maximum
of sixty - percent of salary. The pension plan also provides death and disability pension benefits plus sick
benefits for eligible active and retired employees.
If the employee terminates his employment with the Fire Department and is not eligible for any other benefit
under the Firemen's Pension, the employee is entitled to the following:
p. Return of accumulated contributions less any benefits paid.
A- When a Firefighter would have had 25 years of service, 2% of salary for each year of service.
Firefighters are no longer required to contribute to the Firemen's Pension. The City is required to contribute
the amount necessary to fund the Firemen's Pension, using the aggregate projected benefit method. Under
state law, partial funding of the Firemen's Pension Fund may be provided by an annual tax levy of up to $.45
per $1,000 of assessed valuation of all taxable property of the City. The Firemen's Pension Fund also receives
a proportionate share of the 25 percent of the tax on fire insurance premiums set aside by the state for all paid
firemen in the state. Additional funding is provided by investment interest earnings.
During the year ended December 31, 2012, there were no plan amendments.
Contributions Required and Contributions Made
The City's funding policy is to provide for periodic employer contributions at actuarially determined rates
that, expressed as percentages of annual covered payroll, are designed to accumulate sufficient assets to pay
benefits when due.
Under this method, the normal cost is a portion of the actuarial present value of benefits allocated to a
valuation year. The actuarial accrued liability is equal to the actuarial value of assets. (Thus, there is no
unfunded actuarial accrued liability under this method.)
Significant actuarial assumptions used to compute contribution requirements were the same as those used to
compute the standardized measure of the pension benefit obligation.
POLICE PENSION
The City has a single employer, defined benefit pension plan for Police Officers employed prior to March 1,
1970, and governed by Washington State Law RCW 41.20 and 41.26. Under the governing law, the pension
member is entitled to payment from the City's pension plan for those benefits in excess of those calculated
under the LEOFF plan. The City also covers four members who were ineligible under the State Law
Enforcement Officers and Firefighters (LEOFF) Program.
The City's Police Pension Fund is a closed group. No new members are permitted. Employees who have
completed 25 years or more of service are entitled to annual benefits of 50% of their salary plus an additional
2% for each year of service in excess of 25 years — up to a maximum of 60% of salary. The plan provides death
and disability pension benefits plus sick benefits for eligible active and retired employees.
Comprehensive Annual Financial Report (CAFR) — 69
If the employee terminates his employment with the Police Department and is not eligible for any other
benefit under the Police Pension, the employee is entitled to the following:
A- Return of 75% of contributions made after June 8, 1955, less any benefits paid.
A- When Police Officer would have had 25 years of service, 2% of salary for each year of service.
Plan members are no longer required to contribute to the Police Pension. The City is operating on a pay as
you go basis.
During the year ended December 31, 2012, there were no plan amendments.
Contributions Required and Contributions Made
The Police Pension is a department within the General Fund. The City engaged Milliman U.S.A., Consultant &
Actuaries, to perform the pension's actuarial study. They issued a valuation dated January 1, 2012. The valuation
provided actuarially determined rates to accumulate sufficient assets to pay benefits when due rather than the
current pay as you go basis.
SUMMARY OF FIREMEN'S PENSION AND POLICE PENSION
SCHEDULE OF FUNDING PROGRESS
(Rounded To Thousands)
Unfunded UAAL as a
Actuarial Actuarial Actuarial Percentage
Valuation Value of Accrued Accrued Funded Covered of Covered
Date Assets Liabilities Liabilities Ratio Payroll Payroll
Fire Pension 01/01/2003 658 8,520 7,862 8.00 %, 0 0.00 %,
01/01/2008 646 9,935 9,289 7.00 %, 0 0.00 %,
01/01/2012 795 8,168 7,373 10.00 %, 0 0.00 %,
Police Pension 01/01/2003 0 8,154 8,154 0.00 %, 0 0.00 %,
01/01/2008 0 9,002 9,002 0.00 %, 0 0.00 %,
01/01/2012 0 7,726 7,726 0.00 %, 0 0.00 %,
ANNUAL PENSION COST AND NET PENSION OBLIGATION
-------------- ---- -- Fire --------------- -----
2010 2011 2012
Annual Required Contribution (ARC)
Amortization of UAAL $544,525 $544,525 $505,289
Interest to EOY 19,058 19,058 20,212
ARC at EOY 563,583 563,583 525,501
Interest on NPO (31,890) (37,569) (45,426)
Adjustment to ARC 56,357 68,379 77,835
Annual Pension Cost 588,050 594,393 557,910
Employer Contributions 750,327 656,618 785,696
Change in Net Pension Obligation (162,277) (62,225) (227,786)
Net Pension Obligation (BOY) (911,136) (1,073,413) (1,135,638)
Net Pension Obligation (EOY) ($1,073,413) ($1,135,638) ($1,363,424)
70 — Comprehensive Annual Financial Report (CAFR)
-------------- ---- -- Police
2010 2011 2012
Annual Required Contribution (ARC)
Amortization of UAAL $527,710 $527,710 $529,561
Interest to EOY 18,470 18,470 21,182
ARC at EOY 546,180 546,180 550,743
Interest on NPO 28,153 26,058 25,705
Adjustment to ARC (49,754) (47,428) (44,044)
Annual Pension Cost 524,579 524,810 532,404
Employer Contributions 584,448 626,707 635,444
Change in Net Pension Obligation (59,869) (101,897) (103,040)
Net Pension Obligation (BOY) 804,385 744,516 642,619
Net Pension Obligation (EOY) $744,516 $642,619 $539,579
EMPLOYER PENSION CONTRIBUTIONS
Percent of
Fiscal Annual Annual Net
Year Pension Pension Pension
Ended Cost Contributed Obligation
Fire 12/31/10 588,050 127.6 %, (1,073,413)
12/31/11 594,393 110.5 %, (1,135,638)
12/31/12 557,910 122.4% (1,260,728)
Police 12/31/10 524,579 111.4 %, 744,516
12/31/11 524,810 119.4 %, 642,619
12/31/12 532,404 117.8% 548,023
NOTE 6 - SELF - INSURANCE FUNDS
The City maintains Reserve Funds to provide for self insurance coverage in the areas of Unemployment
Compensation, Medical/Dental coverage, and Workers' Compensation. In addition, the City maintains a Risk
Management Fund to provide for property, liability, and other coverage.
UNEMPLOYMENT COMPENSATION
In 1978, the City of Yakima established an Unemployment Compensation Reserve Fund to provide
unemployment compensation coverage for its employees, and thereby elected to participate with the State of
Washington in a cost reimbursement instead of monthly premium program. In doing so, the City retained its
right to appeal awards and determinations made by the State Department of Employment Security.
The City has contracted with Talx Corporation UCeXpress to represent the City in appeal hearings and to
provide audits of state awards.
The State of Washington invoices the City on a quarterly basis for reimbursement of claims which represent
payment of unemployment compensation and related administrative costs. Resources accrue to the
Unemployment Compensation Reserve Fund through monthly charges made to each Operating Fund based
on employee earnings. Normal accrual rates have been between .5 and .75 percent of gross payroll, while
costs under the monthly premium program would have been approximately three - percent of payroll. The
Comprehensive Annual Financial Report (CAFR) - 71
City has achieved considerable savings. Interfund premiums are based primarily upon the insured funds
claims experience and are reported as quasi external interfund transactions, a total for 2012 of $181,275.
Incurred but not reported claims of $23,052 have been accrued as a liability.
SELF - INSURED MEDICAL / DENTAL PROGRAM
The City, in August, 1979, self insured its medical and dental programs for all eligible employees (temporary
employees and employees hired to work less than half time are not eligible to participate in the plan). The
City's Human Resources Office administers the self insured program and claims payment services were
provided by Healthcare Management Administrators, Inc. (HMA) in 2011. The third party administrator was
changed to Employee Benefit Management Services, Inc. (EBMS) as of January 1, 2012.
Each Operating Fund is charged an accrual amount per covered employee which would otherwise have been
paid to an insurance carrier. These amounts are determined by the City based upon recommendations made
by Emspring. Factors considered by the broker include the amount of claims paid the previous year,
increases over prior years, claims administration costs, projected insurance industry inflation rates and the
status of the Fund's Reserve. Interfund premiums to the Employee Health Benefit Reserve Fund for 2012
were $8,596,412. Incurred but not reported claims of $1,448,732 have been accrued as a liability.
In order to avoid catastrophic losses, the City reinsures the program by purchasing insurance known as "stop
loss insurance." Two types of "stop loss" insurance are purchased: 1) individual stop loss; and, 2) aggregate
stop loss, with both provided through Sunlife Insurance Co. Under the individual stop loss insurance, the
City pays the first $225,000 of claims for an individual employee or dependent. Any charges accrued by an
individual in excess of $225,000 in a calendar year are thereafter reimbursed by Sunlife, up to a lifetime
maximum benefit of $1 million per person. The aggregate stop loss is designed to protect the City from
multiple large claims which may not reach the individual stop loss attachment point ($225,000). The
aggregate stop loss attachment point is calculated by determining the projected amount of claims for the year
and adding an additional 25% of that amount (125% of projected claims).
WORKERS' COMPENSATION PROGRAM
The City self - insured its workers' compensation program for all employees except those covered by the
LEOFF 1 Retirement System in July, 1984. This workers' compensation program provides coverage identical
to the state administered workers' compensation program; however, the City pays only the direct injury
related costs and certain administrative fees. The program is administered by the City's Human Resources
Office with claims administration and safety services provided by Intermountain Claims, Inc.
Each Operating Fund is charged an appropriate accrual amount, per employee, based on rate requirements
prescribed by the State of Washington. Each year the Reserve Fund is reviewed to determine a contribution
rate which provides for an appropriate reserve. Interfund premiums to the Workers' Compensation Fund for
2012 were $948,326. Based on the claims manager's estimate, the City has accrued incurred but not reported
claims of $486,807 at December 31, 2012.
In order to avoid catastrophic losses, the City "reinsures" the program by purchasing insurance known as "stop
loss" insurance. This insurance is provided through Wells Fargo Insurance Services under a policy purchased
from Safety National Casualty Corporation. Under the individual stop loss coverage, the City pays the first
$550,000 of a claim and the insurance company pays (a) the balance up to $1 million for an individual claim or (b)
the balance up to a maximum of $25 million for multiple claims arising from a single incident.
RISK MANAGEMENT PROGRAM
The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets;
errors and omissions; and natural disasters. The Risk Management Fund was established in 1986 to account
for its risk management program. Resources accrue to the fund through interfund premiums to operating
funds for appropriate insurance coverage and the replenishment and building of reserves for potential
72 — Comprehensive Annual Financial Report (CAFR)
liability claims. City contributions to the Risk Management Reserve Fund for 2012 were $2,844,429. The fund
provides for administration, legal services, and claims adjustment and for the purchase of property, general
liability, and other insurance coverage.
Liabilities of the fund are reported when it is probable that a loss has occurred and the amount of the loss can be
reasonably estimated. Liabilities include an amount for claims that has been incurred but not reported. The result
of the process to estimate the claims liability is not an exact amount as it depends on many complex factors, such as
inflation, changes in legal doctrines, and damage awards. Accordingly, claims are reevaluated periodically to
consider recent claim settlement trends, inflation, and other economic or social factors. The estimate of the claims
liability also includes amounts for incremental claim adjustment expenses related to specific claims. Estimated
recoveries, for example from subrogation, are another component of the claims liability estimate. Based on these
factors, the claims manager's estimate of claims liability at December 31, 2012, is $1,219,000.
Property Insurance Coverage
The City of Yakima purchases property insurance and boiler and machinery insurance from Affiliated FM
Insurance Company covering loss or damage to City owned property from various perils including
earthquake and flood. The policy is subject to a $100,000,000 limit per occurrence and a $100,000 per
occurrence deductible. The policy number from 1/10/11 to 1/10/12 was PB541.
Cities Insurance Association of Washington
The City of Yakima became an associate member of the Cities Insurance Association of Washington (CIAW)
effective December 14, 2005, and became a member of CIAW effective September 1, 2010.
Chapter 48.62 RCW authorizes the governing body of any one or more governmental entities to form together into
or join a pool or organization for the joint purchasing of insurance, and /or joint self - insuring, and /or joint hiring or
contracting for risk management services to the same extent that they may individually purchase insurance, self -
insure, or hire or contract for risk management services. An agreement to form a pooling arrangement was made
pursuant to the provisions of Chapter 39.34 RCW, the Interlocal Cooperation Ad. The pool was formed on
September 1, 1988, when 32 cities in the State of Washington joined together by signing an Interlocal Governmental
Agreement to pool their self - insured losses and jointly purchase insurance and administrative services.
The pool allows members to jointly purchase insurance coverage and provide related services, such as
administration, risk management, claims administration, etc. Coverage for Public Officials Liability is on a "claims
made" basis. All other coverages are on an "occurrence basis ". The pool provides the following forms of group
purchased insurance coverage for its members: property, general liability, law enforcement liability, automobile
liability, employment practices liability, boiler and machinery, bonds of various types, and public officials' liability.
The City of Yakima participates in the liability coverages provided by the CIAW. The insurance policy period
through CIAW is from September 1st to September 1st of each year. For the policy period 9/01/2011 to 9/01/2012,
the City of Yakima has general liability, public officials liability and automobile liability coverage, subject to a
program retention of $100,000 per occurrence and a member deductible of $99,000, as a member in the Cities
Insurance Association of Washington, with Munich Reinsurance America, Inc., and Torus Specialty Insurance
Company, policy no. CIAW101234514. For the policy period 9/01/2012 to 9/01/2013, the City of Yakima has general
liability, public officials liability and automobile liability coverage, subject to a program retention of $100,000 per
occurrence and a member deductible of $99,000, as a member in the Cities Insurance Association of Washington,
with Munich Reinsurance America, Inc., and Torus Specialty Insurance Company, policy no. CIAW111334514.
The per occurrence and aggregate limits of liability of the general liability coverage through CIAW are $15,000,000
per occurrence with $25,000,000 aggregate for general liability.
Claims are submitted by the City with Canfield, which has been contracted by CIAW to perform pool
administration, claims adjustment and administration and loss prevention for the pool. The Board of
Comprehensive Annual Financial Report (CAFR) — 73
Directors of CIAW has contracted with Canfield to perform day to day administration of the pool. Copies of
the CIAW pool's annual report may be obtained by writing to 451 Diamond Drive, Ephrata, WA 98823.
Washington State Transit Insurance Pool
The City of Yakima Transit Division is insured for liability insurance through the Washington State Transit
Insurance Pool (WSTIP). The City of Yakima Transit Division joined WSTIP on September 1, 2005.
From 1/1/2012 to 1/1/2013, the City of Yakima Transit Division has liability coverage, which is not subject to a
deductible amount (no deductible), under coverage document no. WSTIP 2012 GL - YT, and public official
liability coverage, subject to a deductible amount of $5,000, under coverage document no. WSTIP POL 2012 -
YT, with the Washington State Transit Insurance Pool ( "WSTIP "), Olympia, Washington. The per occurrence
and aggregate limits of liability of the liability coverage through WSTIP are $12,000,000. Since lornrng WSTIP
on September 1, 2005, the City of Yakima Transit Division has not presented any claims to WSTIP that
exceeded its coverage limits through WSTIP.
WSTIP is a 25- member self insurance program with public transit members who provide transit services and
is located in Olympia, Washington. WSTIP supplies Yakima Transit auto liability, general liability, and
public officials' liability coverage.
The Washington State Transit Insurance Pool was formed by Interlocal Agreement on January 1, 1989, pursuant to
Chapters 48.61 and 39.34 RCW. The purpose for forming WSTIP was to provide member Transit Systems
programs of joint self insurance, joint purchasing of insurance and joint contracting for hiring of personnel to
provide risk management, claims handling and administrative services. Transit authorities lornrng the Pool must
remain members for a minimum of 36 months; a member may withdraw from the Pool after that time by giving 12
months notice. The Pool underwriting and rate setting policies have been established after consultation with
actuaries. The Pool members are subject to a supplemental assessment in the event of deficiencies. If the assets of
the Pool were to be exhausted, members would be responsible for the Pool's liabilities. WSTIP is regulated by the
Washington State Risk Manager and audited yearly by the Washington State Auditor.
WSTIP LIABILITY COVERAGE
Risk Coverage Period Coverage
Auto Liability 1/1/12 - 12/31/12 $12,000,000 per occurrence with a $0 deductible
General Liability 1/1/12 - 12/31/12 $12,000,000 per occurrence with a $0 deductible
Public Officials 1/1/12 - 12/31/12 $12,000,000 per claim / aggregate with a $5,000 deductible
Coverage for public official liability is on a "claims made" basis. All other coverages are on an "occurrence"
basis. Changes in the balance of claims liability during 2012 follows:
UNPAID CLAIMS
2012 2011 2010
Unpaid Claims, January 1 $690,000 $553,000 $976,000
Incurred Claims (mcl IBNR's) 1,346,198 825,951 417,766
Claim Payments (mcl direct legal costs) (817,198) (688,951) (840,766)
Unpaid Claims, December 31 $1,219,000 $690,000 $553,000
NOTE 7 — LONG -TERM DEBT AND CAPITAL LEASES
The State law provides that debt cannot be incurred in excess of the following percentages of the value of the
taxable property of the City.
74 — Comprehensive Annual Financial Report (CAFR)
LEGAL DEBT PERCENTAGE
Limit by Cumulative
Section Limit
I. General Purpose
Without a Vote (includes capital leases) 1.5%
With a Vote 1.0 %, 2.5 %, 2.5 %,
II. Utilities Purpose 2.5% 5.0%
M. Open Space and Parks Facilities 2.5 %, 7.5 %,
Total Legal Limit 7.5 %,
The basic percentages for Section I are the maximum levels of indebtedness those sections may incur.
However, utility or parks indebtedness may each exceed 2.50% and reduce the general indebtedness margin.
The percentages are applied to the taxable assessed value (regular levies) of about $5.6 billion, resulting in the
debt limits, as of December 31, 2012, for the City as follows:
DEBT LIMITS
Without a Vote With a Vote
General General Utilities Open Space
Purpose Purpose 5.0% & Parks 7.5%
Legal Limit $82,417,456 $137,362,427 $274,724,854 $412,087,281
Net Outstanding Indebtedness 22,040,989 22,401,067 22,401,067 22,401,067
Margin Available $60,376,467 $114,961,360 $252,323,787 $389,686,214
(1) Indebtedness is the outstanding debt less cash, investments, and tax receivables available to redeem debt.
There have been no material violations of finance related legal or contractual provisions in any of the funds of
the City. All bonded debt of the City is tax - exempt. We believe the City to be in compliance with applicable
IRS & SEC regulations.
The accompanying schedule of long term debt provides a listing of the outstanding debt of the City and
summarizes the City's debt transactions for 2012.
LONG -TERM LIABILITIES
Amounts
Balance Payments/ Balance Due Within
1/1/2012 Additions Retirements 12/31/2012 One Year
Governmental Activities
General Obligation Debt
Bonds $22,723,267 $0 $2,221,614 $20,501,653 $2,303,534
Intergovernmental Loans 3,522,185 450,102 234,877 $3,737,410 289,634
Contractual Agreement - Yakima Co 607,757 0 307,065 300,692 300,690
Special Assessment
Notes 728,000 0 153,000 575,000 90,521
Lease Purchase Agreements 614,011 0 93,860 520,151 88,531
Unfunded Pension /OPEB Liability 11,563,719 1,801,622 0 13,365,341 0
Vacation /Sick Leave Accrual 6,550,630 468,139 0 7,018,769 0
Total General Long -Term Debt $46,309,569 $2,719,863 $3,010,416 $46,019,016 $3,072,910
Comprehensive Annual Financial Report (CAFR) — 75
Amounts
Balance Payments/ Balance Due Within
1/1/2012 Additions Retirements 12/31/2012 One Year
Business Type Activities
Revenue Debt Payable
Revenue Bonds $22,610,000 $9,400,000 $11,485,000 $20,525,000 $1,285,000
Intergovernmental Loans 9,933,274 3,161,719 1,074,403 12,020,590 1,067,762
SIED Loans - Yakima County 10,400 0 10,400 0 0
Unam Dbt Iss Cost/Prem /Disc /Def Amt 243,131 380,920 217,690 406,361 0
Total Revenue Debt $32,796,805 $12,942,639 $12,787,493 $32,951,951 $2,352,762
Total Long Term Debt $79,106,374 $15,662,502 $15,797,909 $78,970,967 $5,425,672
GENERAL OBLIGATION DEBT
General obligation bonds consist of serial and term bonds, to be retired through the fiscal year ending
December 31, 2032. The City levies a special property tax; collects motel /hotel taxes, Business License fees,
utility taxes; and receives State sales tax credits and gas tax for the principal and interest payments due
within a fiscal year and provides the amounts in the respective Debt Service Fund.
GENERAL OBLIGATION BONDS
Average
Date of Annual
Final Original Outstanding Debt
Maturity Interest Rate Issue 12/31/12 Service
Special Property Tax Levy
2004 Fire Improvement Bonds Ref 1995 12/01/14 2.0 %, - 3.5 %, $2,300,000 $560,000 $294,063
Regular Property Tax Levy
2005 Parks Capital Projects 12/01/15 4.0 %, - 4.5 %, 755,000 260,000 94,631
2008 Fire Ladder Truck 12/01/21 3.25 %, - 4.0 %, 760,000 555,000 74,063
Total Regular Property Tax Levy 1,515,000 815,000
Regular Property Tax Levy/Real Excise Tax
2007 River Road Street Project Bond 05/01/17 4.0 %, -5 .0 %, 1,765,000 980,000 220,346
2007 Fire Station West Valley Rehab Bond 05/01/22 4.0 %, - 5.0 %, 815,000 600,000 73,270
2007 Downtown Revitalization Project Bond 05/01/22 4.0 %, - 4.5 %, 1,490,000 1,090,000 133,423
2008 Third Ave /Mead Walnut St Project Bond 12/01/19 3.25 %, - 4.0 %, 2,190,000 1,455,000 240,595
Total Regular Property Tax Levy/Real Excise Tax 6,260,000 4,125,000
Motel/Hotel Tax
2004 Conv Center Expansion Bonds Ref 1996 11/01/19 2.0% - 4.2% 4,175,000 2,500,000 417,158
Public Facilities District(State Sales Tax Credit)
2002 Conv Center Addition - not refunded 06/01/12 3.0% - 5.0% 6,735,000 0 240,053
2007 Conv Center Addition Refunding 2002 05/01/26 4.0% - 5.0% 4,910,000 4,855,000 441,474
2009 Capitol Theatre Expansion 12/01/32 3.0 %, - 6.6 %, 7,035,000 6,305,000 550,875
Total Public Facilities District 18,680,000 11,160,000
Business Licenses & Real Estate Excise Tax
2003 Sundome Expansion 12/01/23 2.34 % - 4.72% 1,430,528 841,653 148,311
Utility Tax
2003 Criminal Justice/I -82 Bonds ref 1994 12/01/13 4.35 % - 5.25% 4,155,000 500,000 515,400
$38,515,528 $20,501,653
76 — Comprehensive Annual Financial Report (CAFR)
REVENUE BONDS
Water / Wastewater / Irrigation revenue bonds consist of serial and term bonds, to be retired through the fiscal year
ending December 31, 2034. The principal and interest for the water / wastewater panty revenue bonds are provided
by the results of operations. Principal and interest on Irrigation System Bonds are provided by capital rates.
On May 31St, 2012, the City of Yakima issued $9,400,000 par value in Water /Wastewater Revenue Bonds to
refund 2003 Water /Wastewater Revenue, Series B maturing in 2023. As a result, the refunded bonds are
considered to be defeased and the liability has been removed from the business -type activities column of the
statement of net assets. This transaction resulted in an economic gain of $1,233,532 and a reduction of
$183,000 in annual debt service payments.
UTILITY REVENUE BONDS
Average
Date of Annual
Final Interest Original Outstanding Debt
Maturity Rate Issue 12/31/12 Service
2003 Wastewater Rev Bonds (Unrefunded) 11/01/14 2.0 %, -5.0 %, $17,545,000 $1,060,000 (1)
2004 Irrigation Revenue Bonds 09/01/34 2.0 % -4.8% 5,215,000 4,345,000 $320,146
2008 Water Revenue Bonds (ref of 1998) 11/01/18 4.0 -5.0 %, 1,883,951 1,210,000 234,686
2008 Wastewater Revenue Bonds 11/01/27 4.0 -5.0 %, 5,440,000 4,555,000 413,342
2012 Wastewater Rev Bonds (2003 Refunded) 11/01/23 2.0 %, -4.0 %, 9,400,000 9,355,500 1,164,199
$39,483,951 $20,525,500
(1) See 2012 Wastewater Revenue Bonds debt service.
The following Schedule sets forth revenue debt service requirements to maturity (in thousands) and depicts
both bond and intergovernmental loans and contracts.
REVENUE DEBT SERVICE
Bonded Notes and
Debt Interest Contracts Interest
2013 1,335 792 1,013 48
2014 1,405 740 842 41
2015 1,435 697 801 35
2016 1,475 654 626 31
2017 1,515 613 626 28
2018 -2022 7,530 2,195 3,053 95
2023 -2027 3,965 866 1,973 27
2028 -2032 1,270 332 0 0
2033 -2034 595 43 0 0
$20,525 $6,932 $8,934 $305
At December 31, 2012, the City had $1,756,587 in restricted net assets for debt service for the enterprise funds.
These are in compliance with reserve requirements as contained in the various indentures.
INTERGOVERNMENTAL LOANS AND CONTRACTUAL AGREEMENTS
The City participated in a program administered by the State's Department of Community Development on
behalf of the Public Works Board. The program provides financial assistance for general government
activities, such as street / bridge improvements, or proprietary activities, such as water or sewage projects.
The City has several loans through the Washington State Loan Programs as described in the following chart.
Comprehensive Annual Financial Report (CAFR) — 77
PUBLIC WORKS TRUST FUND LOANS
Maturity Maximum Outstanding
Interest Date Authorized 12/31/2012
General Long -Term Debt
Arterial Street Gas Tax
PW -5 -95- 791 -052 - Fair Avenue Improvements 1.0% 07/01/15 $1,000,000 $159,752
PC08- 951 -052 - RR Grade Separations- Lincoln Ave/MLK Jr Blvd 0.5% 07/01/28 3,000,000 2,470,175
Real Estate Excise Tax
L1000030 -0 - Grade Separation Stormwater Drainage 3.0% 06/01/30 1,214,000 982,696
General Fund Sales Tax
CERB loan #C95 -107 - Utilities- Madison Ave. and 8th, "J" St & 8th 6.0% 07/01/16 425,448 124,787
Sub -Total General Long -Term Debt 3,737,410
Revenue Debt
Wastewater Oper at ing Revenue
PW -5 -92 -280 -046 - Wastewater Collection System Improvements 1.0% 07/01/12 $1,120,000 $0
PW -5 -93 -280 -054 - Wastewater Facility Rehabilitation 1.0% 07/01/13 3,221,708 170,505
PW -5 -94 -784 -049 - Wastewater Collection System Improvements 1.0% 07/01/14 1,220,900 81,798
PW -5 -95- 791 -053 - Headworks/Digester Rehabilitation 1.0% 07/01/15 3,030,558 490,123
PW -5 -95- 791 -054 - WW Improvements King Street Collector 1.0% 07/01/15 188,430 35,056
PW -01- 691 -071 - Fruity ale Neighborhood WW/Water Project Ph I 0.5% 07/01/21 1,466,250 698,625
PW -05- 691 -064 - River Road Wastewater Improvement 0.5% 07/01/25 2,307,000 1,615,195
PW -07- 962 -019 - Ultra Violet Disinfection 0.5% 07/01/27 2,300,000 1,820,833
Water Operating Revenue:
PW -03 -027 - Naches River Water Treatment Plt Impr 0.5% 07/01/23 2,694,000 1,481,975
SRF -04- 65104 -037 - Naches River Water Treatment Filter Rehab 0.5% 10/01/25 966,772 602,371
PC08- 951 -051 - New Water Well 0.5% 07/01/21 2,257,200 1,938,381
L11000008 - Wastewater Energy Efficiency Project 0.5% 07/01/21 503,538 481,022
PC12- 951 -065 Wastewater Treatment Plant 0.5% 06/01/31 5,000,000 1,968,869
PC13- 961 -059 Industrial Wastewater Anaerobic 0.5% 06/01/31 2,000,000 635,824
Sub -Total Revenue Debt 12,020,577
Total Intergovernmental Loans $15,757,987
The Public Works Trust Fund loans have a term not to exceed twenty years and require 1/19th of the original
principal plus interest to be paid each July 1st. These are subordinate to utility systems' parity debt and do
not require a full faith and credit pledge.
The City has entered into contractual agreements with Yakima County for Supporting Investments in Economic
Development (SIED) Loans for several different infrastructure projects, the details of which is in the following chart.
CONTRACTUAL AGREEMENTS
Maturity Original Outstanding
Funding Source Issue Date Date Issue 12/31/2012
Contracted Assessment 2006 Issue 06/01/12 $64,500 $0
Contracted Assessment 2007 Issue 06/01/12 50,000 0
Contracted Assessment 2008 Issue 06/01/12 27,500 0
Contracted Assessment 2008 Issue 06/01/12 214,000 45,902
Contracted Assessment 2011 Issue 06/01/13 500,000 254,788
$856,000 $300,690
78 — Comprehensive Annual Financial Report (CAFR)
The following schedule sets forth the general obligation debt and intergovernmental loans and contracts, debt
service requirements including interest, to maturity (in thousands).
GENERAL OBLIGATION DEBT SERVICE
Bonded Notes and
Debt Interest Contracts Interest
2013 $2,304 $943 $290 $35
2014 1,855 868 291 30
2015 1,637 802 293 25
2016 1,593 745 241 21
2017 1,668 679 208 17
2018 -2022 5,851 2,603 984 50
2023 -2027 3,438 1,285 772 17
2028 -2032 2,155 439 155 0
2033 -2034 0 0 0 0
$20,501 $8,364 $3,234 $195
At December 31, 2012, the City had $530,582 available in debt service funds to service the General Obligation
Bonds and notes.
There are a number of other limitations and restrictions contained in the various bond indentures. The City is
in compliance with all significant limitations and restrictions.
SPECIAL ASSESSMENT DEBT WITH GOVERNMENTAL COMMITMENT
Debt service requirements for special assessment notes are met by assessments levied against property
owners. Special assessment debts are notes that are due as moneys become available from payments on
individual assessments.
OUTSTANDING SPECIAL ASSESSMENT DEBT
LID #1056; 12/17/2015 Wastewater
South 7th, 8th, & 9th Avenue Installment Note, 8.75% Interest $26,500
LID #1057; 05/01/2016 Wastewater
North 84th Avenue & Hawthorne Drive - Inst Note, 9.25% Interest 58,000
LID #1058; 05/01/2016 Wastewater
North 90th Avenue, 94th Place, Yakima Ave - Inst Note, 9.25% Interest 47,000
LID #1060; 06/01/2020 Wastewater
North 85th Avenue & Kail Drive- Installment Note, 5.50% Interest 121,000
LID #1061; 04/15/2020 Wastewater
Simpson Lane - Installment Note, 5.50% Interest 322,500
$575,000
Debt service requirements for special assessment notes /bonds are met by assessments levied against property
owners. Pursuant to RCW 35.54, the City maintains a Local Improvement Guarantee Fund for the purpose of
guaranteeing, to the extent of the fund, the payments of its LID bonds. The fund balance at December 31,
2012, of the LID Guarantee Fund totaled $60,164.
Comprehensive Annual Financial Report (CAFR) — 79
LEASE PURCHASE AGREEMENTS
General Capital Assets
As part of the City's capital equipment budgeting program, selected items are obtained via lease purchase
and municipal lease /deferred purchase plans. Since the leases are financing agreements which transfer
ownership to the City at the end of the lease term, the City records the present value of future lease payments
as a capital outlay expenditure and as an offset to other financial sources in the year that the asset is received.
The present value of payments due in future periods is shown as a liability in the financial statements and the
cost of the asset is recorded in the financial statements.
LEASED EQUIPMENT
Telephone System Upgrade $25,735
Two High Speed Laser Printer / Copier 21,891
Two Fire Apparatus 472,526
Total $520,152
The following is a schedule of the future minimum lease payments under the above capital leases and the
present value of net minimum lease payments at December 31, 2012, for the fiscal year listed:
LEASE PAYMENTS
Due in 2013 $107,650
Due in 2014 81,465
Due in 2015 69,959
Due in 2016 69,958
Due in 2017 69,958
Due in 2018 -2020 209,876
Total Minimum Lease Payments $608,866
Less: Amount Representing Interest 88,713
Present Value of Minimum Lease Payments $520,153
UNFUNDED POST EMPLOYMENT BENEFIT LIABILITIES
The City maintains two single employer defined benefit pension plans, Firemen's Pension and Police Pension,
which are closed systems covering Firemen and Police Officers hired prior to March 1, 1970. Both plans had
their first annual actuarial valuation as of March 31, 1989. The required contributions identified in this and
subsequent studies were the basis for recording the unfunded pension liability since 1989, with the most
recent study performed as of January 1, 2008.
Starting in 2008, the City implemented GASB 45 for Other Post Employment Benefits (OPEB), and initial
actuarial evaluations were performed as of January 1, 2008. By State statute, the City is required to provide
healthcare benefits for certain retired police officers and firefighters. The City's self - insured medical plan
allows retirees and the eligible dependents to self -pay premiums using the same rate as active employees,
until they reach age 65, thereby creating an "implicit rate subsidy ". All three of the programs are pay as you
go.
80 — Comprehensive Annual Financial Report (CAFR)
OUTSTANDING LIABILITIES
Balance Balance
1/1/12 Additions 12/31/12
Police Pension $5,212,587 ($103,040) $5,109,547
OPEB Fire - Medical 2,405,739 740,464 3,146,203
OPEB Police - Medical 2,059,055 566,656 2,625,711
OPEB Non -LEOFF - Medical 1,886,338 597,542 2,483,880
Total $11,563,719 $1,801,622 $13,365,341
Both the Police Pension and Police OPEB are paid out of a department in the General Fund. The Fire OPEB is
paid through the Firemen's pension trust fund. The non -LEOFF retiree benefits are being paid annually
through the Employees Health Benefit Reserve fund. The unfunded pension liability will be adjusted
annually by comparing actual expenditures for benefits to the actuarially determined contribution.
See Note 5 for additional information on the pension funds, and Note 12 for additional information on Other
Post Employment Benefits.
NOTE 8 — CONTINGENCIES AND LITIGATIONS
The City participates in a number of federal and state assisted programs. These grants are subject to audit by
the grantors or their representatives. Such audits could result in requests for reimbursement to grantor
agencies for expenditures disallowed under the terms of the grants. City management believes that such
disallowances, if any, will be immaterial.
SECTION 108 LOAN PROGRAM
In 2003, the City was authorized to administer a Housing and Urban Development (HUD) Section 108 Loan
program. HUD has authorized the City to lend up to a maximum of $6.945 million in two separate loan pools
($4 million in 2003 and $2.945 million in 2005). These federal loans are available for the purpose of funding
property rehabilitation for economic development activities that will create new jobs within the target area.
As of December 31, 2012, the City has approved all its authorized maximum Section 108 loans of $6.945
million. The nature of this program is the City approves qualified projects for the loan within HUD
guidelines and acts as a conduit for HUD funds. The loan proceeds flow directly to the ultimate Corporate
Borrower. Payments flow from the Corporate Borrower to the City's Custodian and then to HUD. The loans
are on an amortization schedule from 10 years to 25 years. The HUD contract specifically provides that the
loans are not full faith and credit obligations of the City, but instead, future Community Development Block
Grant (CDBG) allocations are pledged on these loans. The City has entered into agreements to collateralize
their position within HUD underwriting guidelines. In 2005, one of the loans was defeased and another
defeased in 2009. Additionally, the City has been awarded a $1 million Economic Development Initiative
(EDI) grant from HUD as a protection in case of a default. As of December 31, 2012, one of the loans was past
due and the EDI grant was used to pay a portion of the principal and interest due. (The EDI grant can be
utilized for past due payments).
POTENTIAL LITIGATION
Because of its activities, the City is subject to certain pending legal actions which arise in the ordinary course
of business. The City believes, based on the information presently known, that the ultimate liability for any
such legal actions will not be material to the financial position of the City.
Comprehensive Annual Financial Report (CAFR) — 81
NOTE 9 - FUND BALANCE CLASSIFICATION
The City's fund balances are classified in accordance with Governmental Accounting Standards Board
Statement Number 54 (GASB 54), Fund Balance Reporting and Governmental Fund Type Definitions, which
require the City to classify its fund balances based on spending constraints imposed on the use of resources.
The following is a schedule of the ending fund balance as of December 31, 2012.
2012 FUND BALANCE
Other
General Community Gov't
Fund Balance Fund Dev Funds Total
Nonspendable
Inventory $41,570 $0 $80,532 $122,102
Permanent Fund 0 0 612,724 612,724
Total Nonspendable 41,570 0 693,256 734,826
Restricted
Community Relations 0 0 902,872 902,872
Emergency Services 0 0 160,977 160,977
Arterial Street Const & Maint 0 0 495,100 495,100
Housing & Economic Dev 0 193,121 253,488 446,609
Public Safety 0 0 1,007,785 1,007,785
Debt Service 0 0 530,582 530,582
Capital Improvements 0 0 4,339,191 4,339,191
Tourism, Conv & Bus Impr 0 0 911,161 911,161
Total Restricted 0 193,121 8,601,156 8,794,277
Committed
Parks and Recreation 0 0 460,790 460,790
City Streets & Traffic Signals 0 0 1,184,631 1,184,631
Debt Service 0 0 50,504 50,504
Other Purposes 0 0 706,502 706,502
Tourism, Conv & Bus Impr 0 0 679,752 679,752
Total Committed 0 0 3,082,179 3,082,179
Assigned
Parks and Recreation 0 0 156,544 156,544
Public Safety 0 0 743,194 743,194
Debt Service 0 0 74,903 74,903
Tourism, Conv & Bus Impr 0 0 619 619
Total Assigned 0 0 975,260 975,260
Unassigned 9,738,078 0 0 9,738,078
Total Fund Balance $9,779,648 $193,121 $13,351,851 $23,324,620
82 - Comprehensive Annual Financial Report (CAFR)
NOTE 10 — SEGMENT INFORMATION
WATER AND WASTEWATER UTILITIES
For the purposes of revenue bond debt issuance, the water and wastewater utilities are combined in a single
segment (i.e., the System). Therefore, investors in the revenue bonds rely on the revenue generated by both
activities for repayment. Investors in irrigation revenue bonds rely solely on the revenue generated from the
irrigation utility for repayment. Summary financial information for the System and irrigation utility follows.
SYSTEM INFORMATION
Water /
Wastewater Irrigation
Condensed Statement of Net Assets
Assets
Current Assets $19,340,195 $773,273
Restricted Assets 1,651,348 35,436
Capital Assets 111,735,562 18,348,796
Total Assets 132,727,105 19,157,505
Liabilities
Current Liabilities 5,697,938 323,050
Noncurrent Liabilities 26,480,943 4,559,150
Total Liabilities 32,178,881 4,882,200
Net Assets
Invested in Capital Assets, Net of Related Debt $83,895,755 $14,034,636
Restricted 1,721,151 35,436
Unrestricted 14,931,318 205,233
Total Net Assets $100,548,224 $14,275,305
Condensed Statement of Revenues, Expenses and Changes in Net Assets
Operating Revenues
Charges for Services $27,161,859 $2,894,139
Other Operating Revenues 140,147 7,104
Total Operating Revenues 27,302,006 2,901,243
Operating Expenses
Operations and Maintenance $19,582,318 $1,385,334
Depreciation 4,345,023 291,116
Total Operating Expenses 23,927,341 1,676,450
Operating Income (Loss) 3,374,665 1,224,793
Non - Operating Revenues (Expenses)
Miscellaneous Interest (Net) (705,151) (213,117)
Other Non - Operating (Net) 402,388 0
Total Non - Operating Revenues (Expenses) (302,763) (213,117)
Income (Loss) Before Contributions and Transfers 3,071,902 1,011,676
Capital Contributions $1,953,133 $0
Operating Transfers (Net) 123,232 0
Change in Net Assets 5,148,267 1,011,676
Total Net Assets - January 1 $95,399,954 $13,263,631
Total Net Assets - December 31 $100,548,221 $14,275,307
Comprehensive Annual Financial Report (CAFR) — 83
Water /
Wastewater Irrigation
Condensed Statement of Cash Flows
Net cash Provided (Used)
Operating Activities $6,966,209 $1,470,628
Capital and Related Financing Activities (6,620,645) (1,260,349)
Investing Activities (1,541,331) (523,394)
Net Increase (Decrease) (1,195,767) (313,115)
Beginning Cash and Cash Equivalents $4,333,966 $376,154
Ending Cash and Cash Equivalents $3,138,199 $63,039
NOTE 11 - JOINT VENTURES
YAKIMA AIR TERMINAL
The City and the County of Yakima entered into a joint venture for operation of the Yakima Air Terminal on
July 1, 1982. The Yakima Air Terminal Board is comprised of five individuals: two appointed by the City, two
by the County, and one selected by the four appointees. Annually, the governing bodies of the City and
County each designate one of its members as an advisory ex- officio member of the Air Terminal Board.
In 2012, the City and the County contributed equally to the joint venture and own jointly, in equal shares, all
properties or facilities; however, annual profits and losses are retained by the Airport. The Yakima Air
Terminal is presently self - sustaining. The City feels the effects of the joint venture on the combined Financial
Statements taken as a whole is immaterial.
The Air Terminal budget is approved, amended and / or supplemented by joint resolution of the City and
County. Real property acquisition and sale in excess of $50,000 must be approved by both the City and
County. Issuance of bonds for Airport purposes by the City or County requires both parties' approval.
Unaudited financial data for the year ended December 31, 2012, the most recent available, is as follows:
YAKIMA AIR TERMINAL FINANCIAL DATA
Assets
Current Assets $932,450
Property, Plant and Equipment, Net 11,508,943
Intangible Assets, Net 657,277
Construction in Progress 505,625
Total Assets $13,604,295
Liabilities
Current Liabilities $482,006
Other Liabilities -Long Term Debt 47,484
Total Liabilities $529,490
Net Assets
Invested in Capital Assets, Net of Related Debt $12,671,845
Restricted Net Assets 481,506
Unrestricted Net Assets (78,546)
Total Net Assets $13,074,805
84 — Comprehensive Annual Financial Report (CAFR)
Revenues, Expenses and Changes in Fund Net Assets
Operating Revenues $1,073,163
Operating Expenses
Operations / Maintenance $1,099,654
Depreciation 783,547
Total Operating Expenses $1,883,201
Operating Income (Loss) ($810,038)
Non - Operating Revenues (Expenses)
Misc. Interest Revenue $4,285
Interest on Debt ($6,232)
Operating/ Capital Subsidies 471,107
Other 1,921
Total Non - Operating Revenues (Expenses) $471,081
Net Income (Loss) ($338,957)
Total Net Assets, January 1 $13,413,762
Total Net Assets, December 31 $13,074,805
Complete financial statements for the Airport can be obtained from the Yakima Air Terminal at 2400 West
Washington Avenue, Yakima, WA, 98903.
NOTE 12 — OTHER POSTEMPLOYMENT BENEFIT PLANS
BENEFITS OTHER THAN PENSION BENEFIT
In addition to providing pension benefits, the City provides certain health care (100% of medically necessary
costs) and life insurance benefits for retired employees under the City's Firemen's and Police Pensions as
prescribed by state statutes. Current employees under these two pensions become eligible for those benefits
if they reach normal retirement age while working for the City. The cost of retiree health care insurance and
life insurance benefits is recognized as an expenditure as claims are paid. Both plans are being funded 100%
by the City on a pay as you go basis. For 2012, the costs totaled ($907,000) for the Firemen's Pension which
has a total of 56 participants currently eligible to receive benefits and $1,015,000 for the Police Pension which
has a total of 46 participants currently eligible to receive benefits.
In 2012 the City engaged Milliman USA Consultants and Actuaries to perform an actuarial valuation of other
postemployment benefits (OPEB) obligations for LEOFF I Fire /Police and Non -LEOFF I employees, in
accordance with GASB 45.
LEOFF I EMPLOYEES
Under RCW law, retiree medical, hospital, and nursing care, as long as a disability exists, are covered for any
active firefighter hired prior to March 1, 1970. For any retired officer hired prior to March 1, 1970, retiree
medical, hospital, and nursing care are covered at the discretion of the Retirement Board. Members retired
prior to 1961 for reasons other than duty disability are not eligible for retiree medical benefits during
retirement. Under LEOFF Law, the necessary hospital, retiree medical, and nursing care expenses not payable
by Workers' Compensation, Social Security, etc. are covered for any active or retired LEOFF 1 member.
Effective January 1, 2007, the City began reimbursing dental costs up to an annual maximum of $500 for
LEOFF I Fire /Police employees.
Comprehensive Annual Financial Report (CAFR) — 85
Eligibility
Employees are eligible to receive lifetime retiree medical benefits upon service retirement after age 50 with at
least five years of service. If they are not eligible to retire when leaving LEOFF, but have 20 years of service
credit, they are eligible for retiree medical benefits when pension benefits commence. Employees also receive
lifetime benefits upon disability.
Retiree Premiums
Funding Policy — Funding for LEOFF retiree healthcare costs is provided entirely by the City as required by
RCW. The City's funding policy is based upon pay as you go financing requirements.
Annual OPEB Cost and Net OPEB Obligation— The City's annual other postemployment benefit (OPEB) cost is
calculated based upon the annual required contribution (ARC), an amount actuarially determined in accordance
with the parameters of GASB Statement 45. The ARC represents a level of funding that if paid on an ongoing basis
is projected to cover the normal cost each year and amortize any unfunded actuarial liabilities over a period of
thirty years as of January 1, 2012. The following table shows the components of the City's annual OPEB cost for
the year, the amount actually contributed to the plan, and changes in the City's net OPEB. The net Fire and Police
OPEB obligation of $5,771,909 is included as a noncurrent liability on the Statement of Net Assets.
ANNUAL OPEB COST AND NET OPEB OBLIGATION - LEOFF
Fire --------------- -----
2010 2011 2012
Annual Required Contribution (ARC)
Annual Normal Cost $42,839 $42,839 $45,837
Amortization of UAAL 1,276,274 1,276,274 1,584,900
Interest 46,169 46,169 65,229
ARC at EOY 1,365,282 1,365,282 1,695,966
Interest on net OPEB Obligation 45,732 65,137 96,230
Adjustment to ARC (71,458) (104,026) (144,732)
Annual OPEB Cost 1,339,556 1,326,393 1,647,464
Employer Contributions (785,124) (781,717) (907,000)
Change in Net OPEB Obligation 554,432 544,676 740,464
Net Beginning OPEB Obligation 1,306,631 1,861,063 2,405,739
Net OPEB Obligation $1,861,063 $2,405,739 $3,146,203
Police
2010 2011 2012
Annual Required Contribution (ARC)
Annual Normal Cost $45,860 $45,860 $19,732
Amortization of UAAL 1,208,621 1,208,621 1,541,006
Interest 43,907 43,907 62,430
ARC at EOY 1,298,388 1,298,388 1,623,168
Interest on net OPEB Obligation 39,873 57,250 82,362
Adjustment to ARC (62,303) (91,430) (123,874)
Annual OPEB Cost 1,275,958 1,264,208 1,581,656
Employer Contributions 779,481 840,870 1,015,000
Change in Net OPEB Obligation 496,477 423,338 566,656
Net Beginning OPEB Obligation 1,139,235 1,635,712 2,059,050
Net OPEB Obligation $1,635,712 $2,059,050 $2,625,706
86 — Comprehensive Annual Financial Report (CAFR)
Funded Status and Funding Progress — As of January 1, 2008, the most recent actuarial valuation date, the
plan was 0% funded. The accrued liability for benefits was $51,959,000 and the actuarial value of the assets
was $0, resulting in a UAAL of $51,959,000.
SCHEDULE OF FUNDING PROGRESS - LEOFF
Unfunded
Actuarial UAAL as a
Actuarial Actuarial Accrued % of
Fiscal Value of Accrued Liability Fund Covered Covered
Year Assets Liability (UAAL) Ratio Payroll Payroll
Fire 12/31/08 0 $24,295,000 $24,295,000 0.0 %, n/a n/a
12/31/12 0 $26,344,000 $26,344,000 0.0 %, n/a n/a
Police 12/31/08 $0 $23,007,000 $23,007,000 0.0 %, n/a n/a
12/31/12 0 $25,615,000 $25,615,000 0.0 %, n/a n/a
The City's annual OPEB cost, the percentage of OPEB cost contributed to the plan, and the net OPEB
obligation is shown in the following chart.
OPEB CONTRIBUTIONS — LEOFF
Annual Percent Net
Valuation OPEB of OPEB OPEB
Date Cost Contributed Obligation
Fire 12/31/10 1,339,556 58.6 %, 1,861,063
12/31/11 1,326,393 58.9 %, 2,405,739
12/31/12 1,647,464 55.1% 3,146,203
Police 12/31/10 1,275,958 61.1 %, 1,635,712
12/31/11 1,264,208 66.5 %, 2,059,050
12/31/12 1,581,656 64.2 %, 2,625,706
NON -LEOFF I EMPLOYEES
The City of Yakima provides to its retirees employer- provided subsidies associated with postemployment
medical benefits. Retirees eligible to receive pension benefit payments along with their qualifying
dependents are eligible to remain on the medical insurance plan up to Medicare eligible age 65, by self -
paying the entire composite premium rates which blend both active and inactive (i.e. retired) member claims
history.
Eligibility
City members are eligible for retiree medical benefits after becoming eligible for retirement pension benefits
(either reduced or full pension benefits). Spouses of retired members of Plan 1 of LEOFF are also eligible for
benefits. Also, dependent children of retirees under the age of 25 are eligible for benefits.
Only people under age 65 are eligible for benefits.
Former members who are entitled to a deferred vested pension benefit are eligible to receive medical benefits
after pension benefit commencement. Spouses under age 65 of covered members are eligible for medical
benefits after the members' benefits terminate due to death or obtaining age 65.
Comprehensive Annual Financial Report (CAFR) — 87
Medical Benefits
Upon retirement, members are permitted to receive medical benefits. Retirees paid $490.93 per month for
pre -65 Medical coverage for 2012. If a retiree chooses to cover his spouse and /or eligible family an amount of
$614.68 per month for pre -65 Medical coverage was paid in 2012.
Funding Policy
The funding policy is based upon the pay as you go financing requirements.
Annual OPEB Cost and Net OPEB Obligation
The City's annual other postemployment benefit (OPEB) cost is calculated based upon the annual required
contribution (ARC), an amount actuarially determined in accordance with the parameters of GASB Statement
45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover the normal
cost each year and amortize any unfunded actuarial liabilities over a period of thirty years as of January 1,
2012. The following table shows the components of the City's annual OPEB cost for the year, the amount
actually contributed to the plan, and changes in the City's net OPEB.
ANNUAL OPEB COST AND NET OPEB OBLIGATION — NON -LEOFF
Non -LEOFF
2010 2011 2012
Annual Required Contribution (ARC)
Annual Normal Cost $473,260 $473,260 $469,157
Amortization of UAAL 367 ,909 367,909 471,818
Interest 29,441 29,441 37,639
ARC at EOY 870,610 870,610 978,614
Interest on net OPEB Obligation 35,517 51,602 75,454
Adjustment to ARC (55,497) (82,409) (113,484)
Annual OPEB Cost 850,630 839,803 940,584
Employer Contributions 391,081 427,796 343,042
Change in Net OPEB Obligation 459,549 412,007 597,542
Net Beginning OPEB Obligation 1,014,782 1,474,331 1,886,338
Net OPEB Obligation $1,474,331 $1,886,338 $2,483,880
The City's annual OPEB cost, the percentage of OPEB cost contributed to the plan, and the net OPEB
obligation for 2012 is shown in the following chart.
OPEB CONTRIBUTIONS — NON -LEOFF
(Amount Expressed in Thousands)
Fiscal Annual Percent Net
Year OPEB of OPEB OPEB
Ended Cost Contributed Obligation
Non -LEOFF 12/31/10 $850,630 46 1% $1,474,331
12/31/11 839,803 50.9% 1,886,338
12/31/12 940,584 36.5% 2,483,880
Actuarial Methods and Assumptions
Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood
by the employer and the plan members) and include the types of benefits provided at the time of each valuation.
The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short -
term volatility in actuarial accrued liabilities, consistent with the long -term perspective of the calculations.
88 — Comprehensive Annual Financial Report (CAFR)
In the January 1, 2012 actuarial valuation, the Entry Age Normal actuarial cost method was used. The
actuarial assumptions used included a 4.0% discount rate, which is based upon the long -term investment
yield on the investments that are expected to be used to finance the payment of benefits. Medical trend
assumptions range from 7.0% for 2012 dropping gradually to 5.6% in 2024 and beyond.
The UAAL is being amortized on a closed basis at the assumed discount rate. The remaining amortization
period at January 1, 2008 was 30 years.
Funded Status and Funding Progress
As of January 1, 2012, the most recent actuarial valuation date, the plan was 0.0% funded. The accrued
liability for benefits was $7.8 million, and the actuarial value of assets was $0, resulting in a UAAL of $7.8
million.
SCHEDULE OF FUNDING PROGRESS — NON -LEOFF
(Amount Expressed in Thousands)
Unfunded
Actuarial UAAL as a
Actuarial Actuarial Accrued % of
Fiscal Value of Accrued Liability Fund Covered Covered
Year Assets Liability (UAAL) Ratio Payroll Payroll
Non - LEOFF 12/31/08 $0 $7,003,000 $7,003,000 0.0 %, n/a n/a
12/31/12 0 $7,843,000 $7,843,000 0.0 %, n/a n/a
Actuarial valuations involve estimates of the value of reported amounts and assumptions about the
probability of occurrence of events far into the future. Examples include assumptions about future
employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of
the plan and the annual required contributions of the employer are subject to continual revision as actual
results are compared with past expectations and new estimates are made about the future.
NOTE 13 - OTHER DISCLOSURES
RELATED PARTIES
The Yakcorps (632) fund was established in 2011 to account for the fiscal activity of the Yakima Consortium
for Regional Public Safety (YAKCORPS). YAKCORPS consists of a variety of local agencies and
governments. It was formed to operate and maintain a county -wide multi - discipline public safety system.
An Interlocal Agreement provides for the structure, governance, operations and funding of the Consortium
and its activities. Per the Agreement, the City of Yakima ads as fiscal agent for the Consortium.
ACCOUNTING AND REPORTING CHANGES
GASB 63 changes the title of the "Statement of Net Assets" to the "Statement of Net Position" and provides
(1) that deferred outflows should be reported in a separate section following assets, and (2) deferred inflows
should be reported in a separate section following liabilities. The statement then arrives at net position which
includes the net effects of assets, deferred outflows of resources, liabilities, and deferred inflows of resources.
In addition, the title of the "Statement of Revenues, Expenses and Changes in Net Assets" changes to the
"Statement of Revenues, Expenses, and Changes in Net Position." By presenting deferrals separately from
assets and liabilities, the statement of net position will provide users of governmental financial statements
with information about transactions that have already occurred but should be recognized as revenues or
expenses in future periods. In other words, it will provide users with information about how past
Comprehensive Annual Financial Report (CAFR) — 89
transactions that are not assets or liabilities will continue to impact a government's financial statements in the
future periods.
SUBSEQUENT EVENTS
Effective February 12, 2013, the Joint Air Terminal Operations Agreement between Yakima County and the
City of Yakima was terminated. Both parties agreed that it was in the public interest for a single entity to take
over ownership and operations of the Airport. All real and personal property owned by the parties as tenants
in common was conveyed to the City of Yakima in consideration of the City's assumption of joint obligations
and liabilities. The Airport began operating as a department of the City of Yakima subsequent to the
termination of the agreement.
On March 19, 2013, City of Yakima borrowed $310,414 using Washington State's Local Option Capital
Lending (LOCAL) program. The proceeds will be used to purchase Fire Apparatus, approved by City council
on December 4, 2012. The certificates of participation have an all inclusive financing cost of 1.93% and will be
repaid annually over the next 10 years out of General Fund.
On July 1, 2013, City of Yakima issued a private placement $5,000,000 Limited Tax General Obligation Bond.
The proceeds will be used for street improvements, approved by City Council on May 7, 2013. The bonds
bear interest of 1.67% and will be repaid over the next 15 years out of General Fund.
August 16, 2013, City of Yakima borrowed $4,632,792 from State Local Option Capital Lending (LOCAL)
program. The proceeds will be used to purchase 70 Fire Air Packs for the Fire department and 74 Police
vehicles for expansion of assigned Police Vehicle program approved by City council on June 4, 2013. The
certificates of participation have an all inclusive financing cost of 1.619% and will be repaid over the next 6
years out of General Fund.
CHANGE IN ACCOUNTING ENTITY
In 2012, no new funds were created in the City to account for new activities; however, 1 fund was removed
for the following reason:
A - Growth Management Fund (140) — This fund was used to account for the comprehensive planning
effort that was mandated and partially funded by the Washington State Growth Management Act in
the early 1990's. The City has not received funding for this purpose, and is inactivating this fund.
90 — Comprehensive Annual Financial Report (CAFR)
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF EMPLOYER CONTRIBUTIONS
December 31, 2012
FIRE PENSION
Actual
Employer Medical
Contributions Benefit Annual
Fiscal Taxes & Fire Payments Net Required Percentage
Year Insurance and Admin Employer Contribution of ARC
Ending Premiums Expenses Contribution (ARC) Contributed
12/31/07 $1,603,774 $814,394 $789,380 $633,545 124.6%
12/31/08 1,627,553 732,318 895,235 563,583 158.8%
12/31/09 1,487,075 796,765 690,310 563,583 122.5%
12/31/10 1,575,935 825,933 750,002 563,583 133 1%
12/31/11 1,480,800 822,612 658,188 563,583 116.8%
12/31/12 1,381,576 822,612 810,543 525,501 154.2%
POLICE PENSION
Medical
Actual Benefit Annual
Fiscal Employer Payments Net Required Percentage
Year Contributions and Admin Employer Contribution of ARC
Ending Taxes Expenses Contribution (ARC) Contributed
12/31/07 $1,384,894 $765,907 $618,987 $657,086 94.2%
12/31 /08 1,279,173 723,381 555,792 546,180 101.8%
12/31/09 1,316,310 742,965 573,345 546,180 105.0%
12/31 /10 1,368,431 783,984 584,447 546,180 107.0%
12/31/11 1,471,511 844,804 626,707 546,180 114.7%
12/31/12 1,264,681 629,237 635,444 550,743 115.4%
FIRE OPEB
Actual Annual
Employer Medical Required Percentage
Contributions Benefit Employer Contribution of ARC
Taxes Payments Contribution (ARC) Contributed
12/31/08 $687,047 $687,047 $687,047 $1,365,282 50.3%
12/31/09 724,291 724,291 724,291 1,365,282 53.1%
12/31/10 785,124 785,124 785,124 1,365,282 57.5%
12/31/11 781,717 781,717 781,717 1,365,282 57.3%
12/31/12 907,000 907,000 907,000 1,695,966 53.5%
Comprehensive Annual Financial Report (CAFR) - 91
POLICE OPEB
Actual Annual
Employer Medical Net Required Percentage
Contributions Benefit Employer Contribution of ARC
Taxes Payments Contribution (ARC) Contributed
12/31/08 $721,262 $721,262 $721,262 $1,298,388 55.6 %,
12/31/09 725,561 725,561 725,561 1,298,388 55.9%
12/31/10 779,481 779,481 779,481 1,298,388 60.0%
12/31/11 840,870 840,870 840,870 1,298,388 64.8 %,
12/31/12 1,015,000 1,015,000 1,015,000 1,623,168 62.5%
NON - LEOFF OPEB
Actual Annual
Employer Medical Required Percentage
Contributions Benefit Employer Contribution of ARC
Taxes Payments Contribution (ARC) Contributed
12/31/08 $344,732 $344,732 $344,732 $870,610 39.6 %,
12/31/09 371,940 371,940 371,940 870,610 42.7 %,
12/31/10 391,940 391,940 391,940 870,610 45.0 %,
12/31/11 427,796 427,796 427,796 870,610 49.1 %,
12/31/12 343,042 343,042 343,042 978,614 35.1 %,
SCHEDULE OF FUNDING PROGRESS
OTHER POST EMPLOYMENT BENEFITS (OPEB)
(Dollar Amounts in Thousands)
December 31, 2012
Unfunded
Actuarial UAAL as a
Actuarial Actuarial Accrued % of
Fiscal Value of Accrued Liability Covered Covered
Year Assets Liability (UAAL) Fund Ratio Payroll Payroll
Police 12/31/08 $0 $23,007 $23,007 0.0 %, n/a n/a
12/31/12 0 25,615 25,615 0.0 %, n/a n/a
Fire 12/31/08 0 24,295 24,295 0.0 %, n/a n/a
12/31/12 0 26,344 26,344 0.0 %, n/a n/a
Non -LEOFF 12/31/08 0 7,003 7,003 0.0 %, n/a n/a
12/31/12 0 7,843 7,843 0.0 %, n/a n/a
92 - Comprehensive Annual Financial Report (CAFR)
CITY OF );
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
December 31, 2012
With comparative totals for December 31, 2011 Page 1 of 1
#100 #200 #300 #600 - - Total - -
Special Debt Capital Permanent
Revenue Service Project Fund 2012 2011
Assets
Cash & Equity in Pooled Investments $3,307,531 $743,565 $2,278,518 $79,750 $6,409,364 $6,026,204
Receivables
Taxes 274,364 10,577 0 0 284,941 266,881
Accounts 172,150 0 7,666 0 179,816 439,389
Special Assessments 67,586 0 0 0 67,586 30,435
LID Assessments - Delinquent 0 52,314 0 0 52,314 46,049
LID Assessments - Deferred 0 503,206 0 0 503,206 658,092
Other Receivables 0 0 1,044,944 0 1,044,944 0
Due from Other Government Units 523,707 0 163,897 0 687,604 914,749
Inventories 80,532 0 0 0 80,532 0
Investments, at Amortized Cost 4,040,337 0 3,432,076 532,974 8,005,387 5,293,000
Total Assets $8,466,207 $1,309,662 $6,927,101 $612,724 $17,315,694 $13,674,799
Liabilities and Fund Balances
Liabilities
Warrants /Accounts Pavable $330,322 $0 $650,213 $0 $980,535 $923,018
WagesBenefitsPavable 890,817 0 0 0 890,817 869,551
Contracts Payable 70,239 0 0 0 70,239 68,153
Due to Other Funds 1,199 0 0 0 1,199 0
Due to Other Government Units 3,185 0 19,642 0 22,827 3,385
Mature Interest Pavable 0 45,203 0 0 45,203 0
Mature Bonds Pavable 0 101,614 0 0 101,614 0
Deposits Pavable 394,056 0 0 0 394,056 609,981
Deferred Revenue 90,651 503,206 10,991 0 604,848 726,316
Custodial Accounts 848,855 3,650 0 0 852,505 430,520
Total Liabilities 2,629,324 653,673 680,846 0 3,963,843 3,630,924
Fund Balances
Nonspendable 80,532 0 0 612,724 693,256 604,420
Restricted 3,731,383 530,582 4,339,191 0 8,601,156 6,768,189
Committed 2,024,968 50,504 1,006,707 0 3,082,179 1,842,615
Assigned 0 74,903 900,357 0 975,260 828,651
Total Fund Balances 5,836,883 655,989 6,246,255 612,724 13,351,851 10,043,875
Total Liabilities and Fund Balances $8,466,207 $1,309,662 $6,927,101 $612,724 $17,315,694 $13,674,799
The Notes to the Financial Statements, found in the Basic Financial Section, are an integral part of this statement.
Comprehensive Annual Financial Report (CAFR) - 93
CITY OF ) ; : d2 / / / 1/
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES - NONMAJOR GOVERNMENTAL FUNDS
December 31, 2012
With comparative totals for December 31, 2011 Page 1 of 1
#100 #200 #300 #600 Total
Special Debt Capital Permanent
Revenue Service Project Fund 2012 2011
Revenues
Taxes $8,750,070 $1,111,916 $1,975,169 $0 $11,837,155 $10,988,672
Intergovernmental Revenues 7,542,500 108,895 596,609 0 8,248,004 9,230,206
Charges for Services 1,377,823 0 0 8,304 1,386,127 1,550,731
Fines and Forfeits 30,000 0 0 0 30,000 30,000
Interest 52,443 41,450 54,000 20,000 167,893 76,197
Other Revenues 1,917,643 154,886 1,434,731 0 3,507,260 2,524,598
Total Revenues 19,670,479 1,417,147 4,060,509 28,304 25,176,439 24,400,404
Expenditures
Current
General Government 219,077 0 0 0 219,077 315,984
Security of Persons and Property 5,254,222 0 687,114 0 5,941,336 5,513,805
Physical Environment 264,453 0 0 0 264,453 259,983
Transportation 5,125,947 0 280,149 0 5,406,096 5,454,883
Economic Environment 963,559 0 24,510 0 988,069 1,337,345
Cultural & Rec Environment 6,119,174 0 271,172 0 6,390,346 6,496,942
Capital Outlay
General Government 0 0 436,352 0 436,352 27,622
Security of Persons and Property 20,620 0 467,867 0 488,487 1,057,937
Transportation 1,925,229 0 2,818,488 0 4,743,717 2,532,317
Economic Environment 0 0 0 0 0 34,745
Cultural & Rec Environment 31,987 0 816,281 0 848,268 1,025,822
Debt Service
Principal Retirement 148,192 2,374,614 450,195 0 2,973,001 2,663,555
Interest 8,125 1,056,153 56,788 0 1,121,066 1,143,173
Total Expenditures 20,080,585 3,430,767 6,308,916 0 29,820,268 27,864,113
Excess (Deficiency) of Revenues
Over (Under) Expenditures ($410,106) ($2,013,620) ($2,248,407) $28,304 ($4,643,829) ($3,463,709)
Other Financing Sources (Uses)
Proceeds from Cap Lease Financing $0 $0 $0 $0 $0 $576,846
Proceeds from Intergov't Loans 0 0 450,101 0 450,101 500,000
Other Note Proceeds 0 0 600,000 0 600,000 0
Transfers In 2,771,058 2,026,289 1,383,242 0 6,180,589 4,696,104
Transfers (Out) (1,973,577) (36,474) (599,364) (20,000) (2,629,415) (2,318,864)
Intergovernmental Agreements 0 0 (58,425) 0 (58,425) (58,425)
Sale of Capital Assets 0 0 6,122 0 6,122 15,000
Comp for Loss of Gen. Cap Assets 92,474 0 1,434 0 93,908 175,814
Total Other Financing Sources (Uses) 889,955 1,989,815 1,783,110 (20,000) 4,642,880 3,586,475
Net Change in Fund Balances 479,849 (23,805) (465,297) 8,304 (949) 122,766
Fund Balances - January 1 5,357,034 679,794 6,711,552 604,420 13,352,800 9,921,109
Fund Balances - December 31 $5,836,883 $655,989 $6,246,255 $612,724 $13,351,851 $10,043,875
The Notes to the Financial Statements, found in the Basic Financial Section, are an integral part of this statement.
94 Comprehensive Annual Financial Report (CAFR)
CITY OF Xi-/.2 a
NONMAJOR SPECIAL REVENUE FUNDS
Page 1 of 2
Economic Development Fund (123) — Established in 1991 to account for payments received by Housing and
Urban Development UDAG grant recipients to be used for future economic development within the City
Cable TV Communications Fund (125) — Created by Ordinance No 2510 in 1981 to pay expenses incurred by
the City in administering Cable TV franchises for Cable TV operators doing business in the City and formulate
community access television programming.
Community Services Fund (127) — Created in 2007 Healthy Families Yakima, currently its sole program, was
established as a demonstration project to test the effectiveness of alternative approaches to child support
enforcement issues. This program is supported by a federal grant passed through the state and local match (i.e.
donations)
Parks and Recreation Fund (131) — Accounts for the Metropolitan Park District which was made a part of the
General Fund in 1970 by Ordinance 1276 In 1971 it became a separate fund primarily supported by program
fees and tax levies.
Street Fund (141) — While not a self - supporting fund, it is required to be a separate fund for the purpose of
accounting for the disbursement of the Motor Vehicle Fuel Tax revenues paid by the State of Washington to the
City Primarily, the fund is used for maintenance of existing City streets and traffic signalization, supported by a
portion of the gas tax and an allocation of property taxes.
Arterial Street Fund (142) — Created for the purpose of maintaining existing arterial streets and constructing
new arterial streets out of moneys provided by the State from the one -half cent per gallon gas tax levied by the
State for this purpose.
Cemetery Fund (144) — A self - supporting fund for the operation of the Tahoma Cemetery Revenues are
provided through the sale of grave sites and other services; it receives interest from Cemetery Trust Fund
investments. Disbursements from this fund are for all expenses for the care of lots, blocks or parts thereof under
endowment or annual care.
Emergency Services Fund (150) — Established in 1991 when a special property tax levy was approved by the
voters to provide for emergency medical services.
Public Safety Communications Fund (151) — Created in 1996 to consolidate 9 -1 -1 call taking and public safety
dispatch both for Yakima County and the City This is supported by 9 -1 -1 and dispatching contracts with
neighboring jurisdictions, and telephone utility tax transferred from the General Fund.
Police Grants (152) — The Police Grants Fund was created in 2009 to account for supplemental police grant -
funded programs, including the COPS Hiring Recovery Program. Additionally, the City /County Narcotics Unit
(CCNU) was dissolved in the fall of 2009; therefore, the City's portion of drug related seized and forfeited assets
will be managed through this fund.
Parking and Business Improvement Fund (161) — Formed to record the operating receipts and expenditures
for Parking and Business Improvement. The major source of revenue is the assessment levied on businesses.
Expenditures include costs associated with enhanced maintenance and other promotion of the Downtown area.
Comprehensive Annual Financial Report (CAFR) — 95
CITY OF ) X iNa
NONMAJOR SPECIAL REVENUE FUNDS
Page 2 of 2
Parking and Business Improvement Fund (161) — Formed to record the operating receipts and expenditures
for Parking and Business Improvement. The major source of revenue is the assessment levied on businesses.
Expenditures include costs associated with enhanced maintenance and other promotion of the Downtown area.
Trolley Fund (162) — Accounts for the operations, maintenance and capital improvements of the Trolley
System. The major source of revenue is grants.
Front Street Business Improvement Fund (163) — Established in 1997 for the purpose of assisting trade,
economic viability and livability within the area. Revenues are derived from self assessments on businesses
located within the boundaries.
Tourist Promotion Fund (170) — Established in 1978 and centralizes all City expenditures for the support of
tourist and convention activities and publicity, including operational expenses of the city - owned Convention
Center
Capitol Theatre Operating Fund (171) — Created in 1980 for the purpose of maintaining, managing, and
operating the Capitol Theatre.
Public Facilities District — Convention Center (172) — Created in 2002 to account for the revenues received
from the Yakima Regional Public Facilities District, which was established to expand the local convention center
Tourism Promotion Area (173) — Created in 2005 by a self assessment of the lodging industry to fund activities
designed to increase tourism and convention business within Yakima County
Public Facilities District — Capitol Theatre (174) — Created in 2009 to account for the revenues received from
the Yakima Regional Public Facilities District, which was established for the expansion of the Capitol Theatre.
Capitol Theatre Reserve Fund (198) — Established in 1981 using the $1,000,000 proceeds of an insurance
settlement. The fund has been maintained as a General Contingency Reserve. Interest earnings are allocated to
fund a Depreciation Reserve for the Capitol Theatre.
Recovery Grants Program (199) — The Recovery Grants Program Fund is being used to account for American
Recovery and Reinvestment Act (ARRA) grants that include projects in various operating divisions
96 — Comprehensive Annual Financial Report (CAFR)
CITY OF );
COMBINING BALANCE SHEET
NONMAJOR SPECIAL REVENUE FUNDS
December 31, 2012
With comparative totals for December 31, 2011 Page 1 of 4
#123 #125 #127 #131 #141
Economic Cable Community Parks and
Dev TV Services Recreation Streets
Assets
Cash & Equity in Pooled Investments $145,766 $122,404 $759 $641,206 $495,283
Receivables
Taxes 0 0 0 0 0
Accounts 0 1,600 0 7,209 400
Special Assessments 0 0 0 0 0
Due from Other Government Units 0 0 0 0 202,111
Inventories 0 0 0 0 80,532
Investments, at Amortized Cost 974,164 817,528 0 0 876,992
Total Assets $1,119,930 $941,532 $759 $648,415 $1,655,318
Liabilities and Fund Balances
Liabilities
Warrants /Accounts Payable $1,494 $737 $759 $27,418 $126,095
Wages/Benefits Payable 16,093 36,323 0 140,634 263,660
Contracts Payable 0 0 0 0 0
Due to Other Funds 0 0 0 0 0
Due to Other Government Units 0 0 0 2,216 0
Deposits Payable 0 0 0 10,148 0
Deferred Revenue 0 1,600 0 7,209 400
Custodial Accounts 848,855 0 0 0 0
Total Liabilities 866,442 38,660 759 187,625 390,155
Fund Balances
Nonspendable 0 0 0 0 80,532
Restricted 253,488 902,872 0 0 0
Committed 0 0 0 460,790 1,184,631
Total Fund Balances 253,488 902,872 0 460,790 1,265,163
Total Liabilities and Fund Balances $1,119,930 $941,532 $759 $648,415 $1,655,318
The Notes to the Financial Statements, found in the Basic Financial Section, are an integral part of this statement.
Comprehensive Annual Financial Report (CAFR) - 97
CITY OF );
COMBINING BALANCE SHEET
NONMAJOR SPECIAL REVENUE FUNDS
December 31, 2012
With comparative totals for December 31, 2011 Page 2 of 4
#142 #144 #150 #151 #152
Arterial Emergency Pub Safety Police
Streets Cemetery Services Comm Grants
Assets
Cash & Equity in Pooled Investments $104,133 $50,719 $224,661 $141,860 $349,756
Receivables
Taxes 0 0 53,995 0 0
Accounts 0 13,856 0 500 0
Special Assessments 0 0 0 0 0
Due from Other Government Units 129,755 0 0 0 183,622
Inventories 0 0 0 0 0
Investments, at Amortized Cost 695,926 0 0 675,727 0
Total Assets $929,814 $64,575 $278,656 $818,087 $533,378
Liabilities and Fund Balances
Liabilities
Warrants /Accounts Payable $20,351 $732 $1,187 $2,343 $38,320
Wages/Benefits Payable 0 14,598 116,492 239,366 63,651
Contracts Payable 63,564 0 0 0 0
Due to Other Funds 0 0 0 0 0
Due to Other Government Units 799 170 0 0 0
Deposits Payable 350,000 0 0 0 0
Deferred Revenue 0 13,856 0 0 0
Custodial Accounts 0 0 0 0 0
Total Liabilities 434,714 29,356 117,679 241,709 101,971
Fund Balances
Nonspendable 0 0 0 0 0
Restricted 495,100 0 160,977 576,378 431,407
Committed 0 35,219 0 0 0
Total Fund Balances 495,100 35,219 160,977 576,378 431,407
Total Liabilities and Fund Balances $929,814 $64,575 $278,656 $818,087 $533,378
The Notes to the Financial Statements, found in the Basic Financial Section, are an integral part of this statement.
98 Comprehensive Annual Financial Report (CAFR)
CITY OF );
COMBINING BALANCE SHEET
NONMAJOR SPECIAL REVENUE FUNDS
December 31, 2012
With comparative totals for December 31, 2011 Page 3 of 4
#161 #162 #163 #170 #171 #172 #173 #174
Parking and Front St Tourist Capitol PFD Tourism PFD
Bus Impr Trolley Bus Impr Promotion Theatre Cony Ctr Promo Area Cap Thtr
$105,739 $19,641 $8,750 $229,890 $108,960 $193,585 $59,160 $53,337
0 0 0 142,098 0 0 78,271 0
0 0 0 148,585 0 0 0 0
65,921 0 1,665 0 0 0 0 0
0 345 0 0 0 0 0 0
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
$171,660 $19,986 $10,415 $520,573 $108,960 $193,585 $137,431 $53,337
$22,083 $0 $0 $30,057 $0 $0 $58,746 $0
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
0 0 0 33,908 0 0 0 0
65,921 0 1,665 0 0 0 0 0
0 0 0 0 0 0 0 0
88,004 0 1,665 63,965 0 0 58,746 0
0 0 0 0 0 0 0 0
0 19,986 0 456,608 108,960 193,585 78,685 53,337
83,656 0 8,750 0 0 0 0 0
83,656 19,986 8,750 456,608 108,960 193,585 78,685 53,337
$171,660 $19,986 $10,415 $520,573 $108,960 $193,585 $137,431 $53,337
The Notes to the Financial Statements, found in the Basic Financial Section, are an integral part of this statement.
Comprehensive Annual Financial Report (CAFR) - 99
CITY OF irdirlla
COMBINING BALANCE SHEET
NONMAJOR SPECIAL REVENUE FUNDS
December 31, 2012
With comparative totals for December 31, 2011 Page 4 of 4
#198 #199 Total
Capitol Rec Grant
Thtr Res Program 2012 2011
Assets
Cash & Equity in Pooled Investments $251,922 $0 $3,307,531 $2,952,342
Receivables
Taxes 0 0 274,364 254,945
Accounts 0 0 172,150 369,575
Special Assessments 0 0 67,586 30,435
Due from Other Government Units 0 7,874 523,707 768,021
Inventories 0 0 80,532 0
Investments, at Amortized Cost 0 0 4,040,337 3,539,000
Total Assets $251,922 $7,874 $8,466,207 $7,914,318
Liabilities and Fund Balances
Liabilities
Warrants /Accounts Payable $0 $0 $330,322 $532,990
Wages/Benefits Payable 0 0 890,817 869,551
Contracts Payable 0 6,675 70,239 53,869
Due to Other Funds 0 1,199 1,199 0
Due to Other Government Units 0 0 3,185 3,120
Deposits Payable 0 0 394,056 609,981
Deferred Revenue 0 0 90,651 57,353
Custodial Accounts 0 0 848,855 430,420
Total Liabilities 0 7,874 2,629,324 2,557,284
Fund Balances
Nonspendable 0 0 80,532 0
Restricted 0 0 3,731,383 4,675,659
Committed 251,922 0 2,024,968 681,375
Total Fund Balances 251,922 0 5,836,883 5,357,034
Total Liabilities and Fund Balances $251,922 $7,874 $8,466,207 $7,914,318
The Notes to the Financial Statements, found in the Basic Financial Section, are an integral part of this statement.
100 Comprehensive Annual Financial Report (CAFR)
CITY OF );
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES - NONMAJOR SPECIAL REVENUE FUNDS
December 31, 2012
With comparative totals for December 31, 2011 Page 1 of 4
#123 #125 #127 #131 #141
Economic Cable Community Parks and
Dev TV Services Recreation Streets
Revenues
Taxes $0 $521,274 $0 $1,683,000 $3,716,463
Intergovernmental Revenues 66,001 0 0 81,847 1,276,117
Charges for Services 169,848 0 0 783,038 204,899
Fines and Forfeits 0 0 0 0 0
Interest 3,000 0 0 8,000 10,000
Other Revenues 0 13,740 0 214,685 7,165
Total Revenues 238,849 535,014 0 2,770,570 5,214,644
Expenditures
Current
General Government 0 0 0 0 68,160
Security of Persons and Property 0 0 0 0 0
Physical Environment 0 0 0 0 0
Transportation 0 0 0 0 5,119,751
Economic Environment 256,503 0 0 590,402 0
Cultural & Recreational Environment 0 480,706 0 3,194,996 3,007
Capital Outlay
Security of Persons and Property 0 0 0 0 0
Transportation 0 0 0 0 0
Cultural & Recreational Environment 0 0 0 0 0
Debt Service
Principal Retirement 0 0 0 0 0
Interest 0 0 0 0 0
Total Expenditures 256,503 480,706 0 3,785,398 5,190,918
Excess of Rev Over (Under) Expenditures ($17,654) $54,308 $0 ($1,014,828) $23,726
Other Financing Sources (Uses)
Transfers In $0 $0 $0 $1,433,150 $38,308
Transfers (Out) 0 0 0 (261,500) (46,667)
Comp For Loss of Gen. Capital Assets 46,800 0 0 7,168 38,506
Total Other Financing Sources (Uses) 46,800 0 0 1,178,818 30,147
Net Change in Fund Balances 29,146 54,308 0 163,990 53,873
Fund Balances, January 1 224,342 848,564 0 296,800 1,211,290
Fund Balances, December 31 $253,488 $902,872 $0 $460,790 $1,265,163
The Notes to the Financial Statements, found in the Basic Financial Section, are an integral part of this statement.
Comprehensive Annual Financial Report (CAFR) -101
CITY OF );
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES - NONMAJOR SPECIAL REVENUE FUNDS
December 31, 2012
With comparative totals for December 31, 2011 Page 2 of 4
#142 #144 #150 #151 #152
Arterial Emergency Pub Safety Police
Streets Cemetery Services Comm Grants
Revenues
Taxes $0 $0 $0 $176,229 $0
Intergovernmental Revenues 2,063,365 0 1,201,029 2,105,350 711,098
Charges for Services 0 144,933 0 75,105 0
Fines and Forfeits 0 0 0 0 0
Interest 10,000 0 443 1,100 5,000
Other Revenues 116,057 68 0 13,927 532,271
Total Revenues 2,189,422 145,001 1,201,472 2,371,711 1,248,369
Expenditures
Current
General Government 0 0 0 0 117,918
Security of Persons and Property 0 0 1,075,527 3,175,331 968,462
Physical Environment 0 264,453 0 0 0
Transportation 6,196 0 0 0 0
Economic Environment 0 0 0 0 0
Cultural & Recreational Environment 0 0 0 0 0
Capital Outlay
Security of Persons and Property 0 0 0 20,620 0
Transportation 1,925,229 0 0 0 0
Cultural & Recreational Environment 31,642 0 0 0 0
Debt Service
Principal Retirement 115,105 0 0 33,087 0
Interest 6,300 0 0 1,825 0
Total Expenditures 2,084,472 264,453 1,075,527 3,230,863 1,086,380
Excess of Rev Over (Under) Expenditures $104,950 ($119,452) $125,945 ($859,152) $161,989
Other Financing Sources (Uses)
Transfers In $83,673 $110,000 $0 $840,000 $0
Transfers (Out) (284,183) 0 (100,000) 0 0
Comp. For Loss of Gen. Capital Assets 0 0 0 0 0
Total Other Financing Sources (Uses) (200,510) 110,000 (100,000) 840,000 0
Net Change in Fund Balances (95,560) (9,452) 25,945 (19,152) 161,989
Fund Balances, January 1 590,660 44,671 135,032 595,530 269,418
Fund Balances, December 31 $495,100 $35,219 $160,977 $576,378 $431,407
The Notes to the Financial Statements, found in the Basic Financial Section, are an integral part of this statement.
102 Comprehensive Annual Financial Report (CAFR)
CITY OF );
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES - NONMAJOR SPECIAL REVENUE FUNDS
December 31, 2012
With comparative totals for December 31, 2011 Page 3 of 4
#161 #162 #163 #170 #171 #172 #173 #174
Parking and Front St Tourist Capitol PFD Tourism PFD
Bus Impr Trolley Bus Impr Promotion Theatre Cony Ctr Promo Area Cap Thtr
$0 $0 $0 $557,681 $230,164 $696,071 $642,688 $526,500
0 345 0 0 0 0 0 0
0 0 0 0 0 0 0 0
30,000 0 0 0 0 0 0 0
1,500 1,000 60 150 380 1,100 0 710
187,138 3,498 3,301 825,793 0 0 0 0
218,638 4,843 3,361 1,383,624 230,544 697,171 642,688 527,210
0 0 0 0 0 0 0 0
32,405 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
114,802 0 0 0 0 0 0 0
6,909 872 1,532 1,426,855 346,201 12,685 632,725 12,686
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
0 345 0 0 0 0 0 0
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
154,116 1,217 1,532 1,426,855 346,201 12,685 632,725 12,686
$64,522 $3,626 $1,829 ($43,231) ($115,657) $684,486 $9,963 $514,524
$0 $0 $0 $139,000 $126,927 $0 $0 $0
0 0 0 0 0 (705,000) 0 (504,300)
0 0 0 0 0 0 0 0
0 0 0 139,000 126,927 (705,000) 0 (504,300)
64,522 3,626 1,829 95,769 11,270 (20,514) 9,963 10,224
19,134 16,360 6,921 360,839 97,690 214,099 68,722 43,113
$83,656 $19,986 $8,750 $456,608 $108,960 $193,585 $78,685 $53,337
The Notes to the Financial Statements, found in the Basic Financial Section, are an integral part of this statement.
Comprehensive Annual Financial Report (CAFR) -103
CITY OF )!(Mill!
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES - NONMAJOR SPECIAL REVENUE FUNDS
December 31, 2012
With comparative totals for December 31, 2011 Page 4 of 4
#198 #199 - -Total --
Capitol Rec Grant
ThtrRes Program 2012 2011
Revenues
Taxes $0 $0 $8,750,070 $8,194,290
Intergovernmental Revenues 0 37,348 7,542,500 7,841,827
Charges for Services 0 0 1,377,823 1,538,410
Fines and Forfeits 0 0 30,000 30,000
Interest 10,000 0 52,443 13,447
Other Revenues 0 0 1,917,643 2,133,947
Total Revenues 10,000 37,348 19,670,479 19,751,921
Expenditures
Current
General Government 0 32,999 219,077 313,117
Security of Persons and Property 0 2,497 5,254,222 5,100,137
Physical Environment 0 0 264,453 259,983
Transportation 0 0 5,125,947 5,204,883
Economic Environment 0 1,852 963,559 1,315,461
Cultural & Recreational Environment 0 0 6,119,174 6,023,183
Capital Outlay
Security of Persons and Property 0 0 20,620 0
Transportation 0 0 1,925,229 1,909,447
Cultural & Recreational Environment 0 0 31,987 166,937
Debt Service
Principal Retirement 0 0 148,192 199,619
Interest 0 0 8,125 12,927
Total Expenditures 0 37,348 20,080,585 20,505,694
Excess of Rev Over (Under) Expenditures $10,000 $0 ($410,106) ($753,773)
Other Financing Sources (Uses)
Transfers In $0 $0 $2,771,058 $2,350,510
Transfers (Out) (71,927) 0 (1,973,577) (1,702,552)
Comp. For Loss of Gen. Capital Assets 0 0 92,474 175,814
Total Other Financing Sources (Uses) (71,927) 0 889,955 823,772
Net Change in Fund Balances (61,927) 0 479,849 69,999
Fund Balances, January 1 313,849 0 5,357,034 5,287,035
Fund Balances, December 31 $251,922 $0 $5,836,883 $5,357,034
The Notes to the Financial Statements, found in the Basic Financial Section, are an integral part of this statement.
104 Comprehensive Annual Financial Report (CAFR)
CITY OF i ltkir/c!t
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND
BALANCES — ACTUAL & BUDGET - NONMAJOR SPECIAL REVENUE FUNDS
December 31, 2012
With comparative totals for December 31, 2011 Page 1 of 20
123 — ECONOMIC DEVELOPMENT
Variance with
— Budgeted Amounts — Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues
Intergovernmental Revenues $52,000 $52,000 $66,001 $14,001
Charges tor Services 220,000 220,000 169,848 (50,152)
Interest 0 0 3,000 3,000
Total Revenues 272,000 272,000 238,849 (33,151)
Expenditures
Current
Economic Environment 669,372 669,372 256,503 412,869
Excess of Revenues Over (Under) Expenditures ($397,372) ($397,372) ($17,654) $379,718
Other Financing Sources (Uses)
Comp tor Loss of General Capital Assets $0 $0 $46,800 $46,800
Net Change in Fund Balance (397,372) (397,372) 29,146 426,518
Fund Balances, January 1 225,990 225,990 224,342 (1,648)
Fund Balances, December 31 ($171,382) ($171,382) $253,488 $424,870
The Notes to the Financial Statements, found in the Basic Financial Section, are an integral part of this statement.
Comprehensive Annual Financial Report (CAFR) —105
CITY OF )!(Mill!
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND
BALANCES — ACTUAL & BUDGET - NONMAJOR SPECIAL REVENUE FUNDS
December 31, 2012
With comparative totals for December 31, 2011 Page 2 of 20
125 — CABLE TV
Variance with
— Budgeted Amounts — Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues
Taxes $480,000 $480,000 $521,274 $41,274
Other Revenues 14,950 14,950 13,740 (1,210)
Total Revenues 494 ,950 494,950 535,014 40,064
Expenditures
Current
Cultural & Recreational Environment 557 ,554 557,554 480,706 76,848
Capital Outlay
Cultural & Recreational Environment 37 ,000 37,000 0 37,000
Total Expenditures 594 ,554 594,554 480,706 113,848
Excess of Revenues Over (Under) Expenditures ($99,604) ($99,604) $54,308 $153,912
Net Change in Fund Balances (99,604) (99,604) 54,308 153,912
Fund Balances, January 1 741,642 741,642 848,564 106,922
Fund Balances, December 31 $642,038 $642,038 $902,872 $260,834
The Notes to the Financial Statements, found in the Basic Financial Section, are an integral part of this statement.
106 Comprehensive Annual Financial Report (CAFR)
CITY OF )!(Mill!
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND
BALANCES - ACTUAL & BUDGET - NONMAJOR SPECIAL REVENUE FUNDS
December 31, 2012
With comparative totals for December 31, 2011 Page 3 of 20
131 - PARKS & RECREATION FUND
Variance with
- Budgeted Amounts - Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues
Taxes $1,578,000 $1,578,000 $1,683,000 $105,000
Intergovernmental Revenues 92,000 92,000 81,847 (10,153)
Charges tor Services 945,965 945,965 783,038 (162,927)
Interest 0 0 8,000 8,000
Other Revenues 224,800 224,800 214,685 (10,115)
Total Revenues 2,840,765 2,840,765 2,770,570 (70,195)
Expenditures
Current
Economic Environment 716,915 716,915 590,402 126,513
Cultural & Recreational Environment 3 ,137,282 3,145,282 3,194,996 (49,714)
Total Expenditures 3 ,854,197 3,862,197 3,785,398 76,799
Excess ot Revenues Over (Under) Expenditures ($1,013,432) ($1,021,432) ($1,014,828) $6,604
Other Financing Sources (Uses)
Transters In $1,154,000 $1,154,000 $1,433,150 $279,150
Transters (Out) (146,500) (186,500) (261,500) (75,000)
Comp tor Loss ot General Capital Assets 55,000 55,000 7,168 (47,832)
Total Other Financing Sources (Uses) 1,062,500 1,022,500 1,178,818 156,318
Net Change in Fund Balances 49,068 1,068 163,990 162,922
Fund Balances, January 1 341,093 341,093 296,800 (44,293)
Fund Balances, December 31 $390,161 $342,161 $460,790 $118,629
The Notes to the Financial Statements, found in the Basic Financial Section, are an integral part of this statement.
Comprehensive Annual Financial Report (CAFR) -107
CITY OF )!(Mill!
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND
BALANCES - ACTUAL & BUDGET - NONMAJOR SPECIAL REVENUE FUNDS
December 31, 2012
With comparative totals for December 31, 2011 Page 4of 20
141- STREETS FUND
Variance with
- Budgeted Amounts - Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues
Taxes $3,456,000 $3,456,000 $3,716,463 $260,463
Intergovernmental Revenues 1,300,500 1,300,500 1,276,117 (24,383)
Charges tor Services 215,760 215,760 204,899 (10,861)
Interest 3,000 3,000 10,000 7,000
Other Revenues 20,050 20,050 7,165 (12,885)
Total Revenues 4 ,995,310 4,995,310 5,214,644 219,334
Expenditures
Current
General Government $70,077 $70,077 $68,160 1,917
Transportation 4 ,834,410 5,078,196 5,119,751 (41,555)
Cultural & Recreational Environment 4 ,217 4,217 3,007 1,210
Total Expenditures 4 ,908,704 5,152,490 5,190,918 (38,428)
Excess ot Revenues Over (Under) Expenditures $86,606 ($157,180) $23,726 $180,906
Other Financing Sources (Uses)
Transters In $40,000 $40,000 $38,308 ($1,692)
Transters (Out) (46,667) (46,667) (46,667) 0
Comp tor Loss ot General Capital Assets 20,000 20,000 38,506 18,506
Total Other Financing Sources (Uses) 13,333 13,333 30,147 16,814
Net Change in Fund Balances 99,939 (143,847) 53,873 197,720
Fund Balances, January 1 1,045,092 1,045,092 1,211,290 166,198
Fund Balances, December 31 $1,145,031 $901,245 $1,265,163 $363,918
The Notes to the Financial Statements, found in the Basic Financial Section, are an integral part of this statement.
108 Comprehensive Annual Financial Report (CAFR)
CITY OF )!(Mill!
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND
BALANCES - ACTUAL & BUDGET - NONMAJOR SPECIAL REVENUE FUNDS
December 31, 2012
With comparative totals for December 31, 2011 Page 5 of 20
142 - ARTERIAL STREETS
Variance with
- Budgeted Amounts - Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues
Intergovernmental Revenues $4,119,175 $4,119,175 $2,063,365 ($2,055,810)
Charges tor Services 500 500 0 (500)
Interest 4,000 4,000 10,000 6,000
Other Revenues 246,477 246,477 116,057 (130,420)
Total Revenues 4,370,152 4,370,152 2,189,422 (2,180,730)
Expenditures
Current
Transportation 5,000 5,000 6,196 (1,196)
Capital Outlay
Transportation 3 ,843,400 3,843,400 1,925,229 1,918,171
Cultural & Recreational Environment 300 ,000 300,000 31,642 268,358
Debt Service
Principal Retirement 115,106 115,106 115,105 1
Interest 6,789 6,789 6,300 489
Total Expenditures 4 ,270,295 4,270,295 2,084,472 2,185,823
Excess of Revenues Over (Under) Expenditures $99,857 $99,857 $104,950 $5,093
Other Financing Sources (Uses)
Transters In $67,199 $67,199 $83,673 $16,474
Transters (Out) (284,183) (284,183) (284,183) 0
Total Other Financing Sources (Uses) (216,984) (216,984) (200,510) 16,474
Net Change in Fund Balances (117,127) (117,127) (95,560) 21,567
Fund Balances, January 1 227,413 227,413 590,660 363,247
Fund Balances, December 31 $110,286 $110,286 $495,100 $384,814
The Notes to the Financial Statements, found in the Basic Financial Section, are an integral part of this statement.
Comprehensive Annual Financial Report (CAFR) -109
CITY OF );
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND
BALANCES — ACTUAL & BUDGET - NONMAJOR SPECIAL REVENUE FUNDS
December 31, 2012
With comparative totals for December 31, 2011 Page 6 of 20
144 — CEMETERY
Variance with
— Budgeted Amounts — Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues
Charges for Services $188,050 $188,050 $144,933 ($43,117)
Other Revenues 0 0 68 $68
188,050 188,050 145,001 (43,049)
Expenditures
Current
Physical Environment 265,699 265,699 264,453 1,246
Excess of Revenues Over (Under) Expenditures ($77,649) ($77,649) ($119,452) ($41,803)
Other Financing Sources (Uses)
Transfers In $55,500 $55,500 $110,000 $54,500
Net Change in Fund Balances (22,149) (22,149) (9,452) 12,697
Fund Balances, January 1 57,860 57,860 44,671 (13,189)
Fund Balances, December 31 $35,711 $35,711 $35,219 ($492)
The Notes to the Financial Statements, found in the Basic Financial Section, are an integral part of this statement.
110 Comprehensive Annual Financial Report (CAFR)
CITY OF );
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND
BALANCES — ACTUAL & BUDGET - NONMAJOR SPECIAL REVENUE FUNDS
December 31, 2012
With comparative totals for December 31, 2011 Page 7 of 20
150 — EMERGENCY SERVICES
Variance with
— Budgeted Amounts — Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues
Intergovernmental Revenues $1,195,726 $1,195,726 $1,201,029 $5,303
Interest 300 300 443 143
Total Revenues 1,196,026 1,196,026 1,201,472 5,446
Expenditures
Current
Security of Persons and Property 1,099,489 1,122,030 1,075,527 46,503
Excess of Revenues Over (Under) Expenditures $96,537 $73,996 $125,945 $51,949
Other Financing Sources (Uses)
Transfers (Out) ($100,000) ($100,000) ($100,000) $0
Net Change in Fund Balances (3,463) (26,004) 25,945 51,949
Fund Balances, January 1 64,553 64,553 135,032 70,479
Fund Balances, December 31 $61,090 $38,549 $160,977 $122,428
The Notes to the Financial Statements, found in the Basic Financial Section, are an integral part of this statement.
Comprehensive Annual Financial Report (CAFR) —111
CITY OF )!(Mill!
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND
BALANCES - ACTUAL & BUDGET - NONMAJOR SPECIAL REVENUE FUNDS
December 31, 2012
With comparative totals for December 31, 2011 Page 8 of 20
151 - PUBLIC SAFETY COMMUNICATIONS
Variance with
- Budgeted Amounts - Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues
Taxes $152,500 $152,500 $176,229 $23,729
Intergovernmental Revenues 2,313,117 2,313,117 2,105,350 (207,767)
Charges tor Services 85,648 85,648 75,105 (10,543)
Interest 750 750 1,100 350
Other Revenues 10,328 10,328 13,927 3 ,599
Total Revenues 2,562,343 2,562,343 2,371,711 (190,632)
Expenditures
Current
Security of Persons and Property 3 ,383,361 3,453,312 3,175,331 277,981
Capital Outlay
Security ot Persons and Property 70,000 70,000 20,620 49,380
Debt Service
Principal Retirement 31,737 31,737 33,087 (1,350)
Interest 3,174 3,174 1,825 1,349
Total Expenditures 3,488 ,272 3,558,223 3,230,863 327,360
Excess ot Revenues Over (Under) Expenditures ($925,929) ($995,880) ($859,152) $136,728
Other Financing Sources (Uses)
Transters In $840,000 $840,000 $840,000 $0
Net Change in Fund Balances (85,929) (155,880) (19,152) 136,728
Fund Balances, January 1 296,552 296,552 595,530 298,978
Fund Balances, December 31 $210,623 $140,672 $576,378 $435,706
The Notes to the Financial Statements, found in the Basic Financial Section, are an integral part of this statement.
112 Comprehensive Annual Financial Report (CAFR)
CITY OF );
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND
BALANCES - ACTUAL & BUDGET - NONMAJOR SPECIAL REVENUE FUNDS
December 31, 2012
With comparative totals for December 31, 2011 Page 9 of 20
152 - POLICE GRANTS
Variance with
- Budgeted Amounts - Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues
Intergovernmental Revenues $745,204 $809,364 $711,098 ($98,266)
Interest 0 0 5,000 5,000
Other Revenues 404,000 404,000 532,271 128,271
Total Revenues 1,149,204 1,213,364 1,248,369 35,005
Expenditures
Current
General Government 120,804 120,804 117,918 2,886
Security of Persons and Property 981,158 1,053,595 968,462 85,133
Total Expenditures 1,101,962 1,174,399 1,086,380 88,019
Excess of Revenues Over (Under) Expenditures $47,242 $38,965 $161,989 $123,024
Other Financing Sources (Uses)
Intergovernmental Agreements 12,666 12,666 0 (12,666)
Net Change in Fund Balances 59,908 51,631 161,989 110,358
Fund Balances, January 1 507,148 507,148 269,418 (237,730)
Fund Balances, December 31 $567,056 $558,779 $431,407 ($127,372)
The Notes to the Financial Statements, found in the Basic Financial Section, are an integral part of this statement.
Comprehensive Annual Financial Report (CAFR) -113
CITY OF );
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND
BALANCES - ACTUAL & BUDGET - NONMAJOR SPECIAL REVENUE FUNDS
December 31, 2012
With comparative totals for December 31, 2011 Page 10 of 20
161- PARKING & BUSINESS IMPROVEMENT
Variance with
- Budgeted Amounts - Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues
Fines & Forfeits $30,000 $30,000 $30,000 $0
Interest 0 0 1,500 1,500
Other Revenues 221,340 221,340 187,138 (34,202)
Total Revenues 251,340 251,340 218,638 (32,702)
Expenditures
Current
Security of Persons and Property 35,000 35,000 32,405 2,595
Economic Environment 190,000 190,000 114,802 75,198
Cultural & Recreational Environment 10,962 10,962 6,909 4,053
Total Expenditures 235,962 235,962 154,116 81,846
Excess of Revenues Over (Under) Expenditures $15,378 $15,378 $64,522 $49,144
Net Change in Fund Balances 15,378 15,378 64,522 49,144
Fund Balances, January 1 26,712 26,712 19,134 (7,578)
Fund Balances, December 31 $42,090 $42,090 $83,656 $41,566
The Notes to the Financial Statements, found in the Basic Financial Section, are an integral part of this statement.
114 Comprehensive Annual Financial Report (CAFR)
CITY OF / tin / ma
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND
BALANCES — ACTUAL & BUDGET - NONMAJOR SPECIAL REVENUE FUNDS
December 31, 2012
With comparative totals for December 31, 2011 Page 11 of 20
162 — TROLLEY
Variance with
— Budgeted Amounts — Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues
Intergovernmental Revenues $0 $63,653 $345 ($63,308)
Interest 0 0 1,000 1,000
Other Revenues 1,576 1,576 3,498 1,922
Total Revenues 1,576 65,229 4,843 (60,386)
Expenditures
Current
Cultural & Recreational Environment 11,368 11,368 872 10,496
Capital Outlay
Cultural & Recreational Environment 0 63,653 345 63,308
Total Expenditures 11,368 75,021 1,217 73,804
Excess of Revenues Over (Under) Expenditures ($9,792) ($9,792) $3,626 $13,418
Net Change in Fund Balances (9,792) (9,792) 3,626 13,418
Fund Balances, January 1 16,176 16,176 16,360 184
Fund Balances, December 31 $6,384 $6,384 $19,986 $13,602
The Notes to the Financial Statements, found in the Basic Financial Section, are an integral part of this statement.
Comprehensive Annual Financial Report (CAFR) —115
CITY OF );
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND
BALANCES — ACTUAL & BUDGET - NONMAJOR SPECIAL REVENUE FUNDS
December 31, 2012
With comparative totals for December 31, 2011 Page 12 of 20
163 — FRONT STREET BUSINESS IMPROVEMENT
Variance with
— Budgeted Amounts — Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues
Interest $35 $35 $60 $25
Other Revenues 3,500 3,500 3,301 (199)
Total Revenues 3,535 3,535 3,361 (174)
Expenditures
Current
Cultural & Recreational Environment 5,000 6,298 1,532 4,766
Excess of Revenues Over (Under) Expenditures ($1,465) ($2,763) $1,829 $4,592
Net Change in Fund Balances (1,465) (2,763) 1,829 4,592
Fund Balances, January 1 6,153 6,153 6,921 768
Fund Balances, December 31 $4,688 $3,390 $8,750 $5,360
The Notes to the Financial Statements, found in the Basic Financial Section, are an integral part of this statement.
116 Comprehensive Annual Financial Report (CAFR)
CITY OF );
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND
BALANCES — ACTUAL & BUDGET - NONMAJOR SPECIAL REVENUE FUNDS
December 31, 2012
With comparative totals for December 31, 2011 Page 13 of 20
170 — TOURIST PROMOTION
Variance with
— Budgeted Amounts — Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues
Taxes $545,200 $545,200 $557,681 $12,481
Interest 50 50 150 100
Other Revenues 759,200 759,200 825,793 66,593
Total Revenues 1,304,450 1,304,450 1,383,624 79,174
Expenditures
Current
Cultural & Recreational Environment 1,436,421 1,436,421 1,426,855 9,566
Debt Service
Principal Retirement 10,715 10,715 0 10,715
Interest 237 237 0 237
Total Expenditures 1,447,373 1,447,373 1,426,855 20,518
Excess of Revenues Over (Under) Expenditures ($142,923) ($142,923) ($43,231) $99,692
Other Financing Sources (Uses)
Transfers In $139,000 $139,000 $139,000 $0
Net Change in Fund Balances (3,923) (3,923) 95,769 99,692
Fund Balances, January 1 162,915 162,915 360,839 197,924
Fund Balances, December 31 $158,992 $158,992 $456,608 $297,616
The Notes to the Financial Statements, found in the Basic Financial Section, are an integral part of this statement.
Comprehensive Annual Financial Report (CAFR) —117
CITY OF );
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND
BALANCES — ACTUAL & BUDGET - NONMAJOR SPECIAL REVENUE FUNDS
December 31, 2012
With comparative totals for December 31, 2011 Page 14 of 20
171 -- CAPITOL THEATRE
Variance with
— Budgeted Amounts — Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues
Taxes $197,000 $197,000 $230,164 $33,164
Interest 250 250 380 130
Total Revenues 197,250 197,250 230,544 33,294
Expenditures
Current
Cultural & Recreational Environment 346,200 285,527 346,201 (60,674)
Excess of Revenues Over (Under) Expenditures ($148,950) ($88,277) ($115,657) ($27,380)
Other Financing Sources (Uses)
Transfers In $126,927 $126,927 $126,927 $0
Net Change in Fund Balances (22,023) 38,650 11,270 (27,380)
Fund Balances, January 1 99,527 99,527 97,690 (1,837)
Fund Balances, December 31 $77,504 $138,177 $108,960 ($29,217)
The Notes to the Financial Statements, found in the Basic Financial Section, are an integral part of this statement.
118 Comprehensive Annual Financial Report (CAFR)
CITY OF );
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND
BALANCES — ACTUAL & BUDGET - NONMAJOR SPECIAL REVENUE FUNDS
December 31, 2012
With comparative totals for December 31, 2011 Page 15 of 20
172 — PFD - CONVENTION CENTER
Variance with
— Budgeted Amounts — Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues
Taxes $645,000 $645,000 $696,071 $51,071
Interest 750 750 1,100 350
Total Revenues 645,750 645,750 697,171 51,421
Expenditures
Current
Cultural & Recreational Environment 14,000 14,000 12,685 1,315
Excess of Revenues Over (Under) Expenditures $631,750 $631,750 $684,486 $52,736
Other Financing Sources (Uses)
Transfers (Out) ($705,000) ($705,000) ($705,000) $0
Net Change in Fund Balances (73,250) (73,250) (20,514) 52,736
Fund Balances, January 1 205,668 205,668 214,099 8,431
Fund Balances, December 31 $132,418 $132,418 $193,585 $61,167
The Notes to the Financial Statements, found in the Basic Financial Section, are an integral part of this statement.
Comprehensive Annual Financial Report (CAFR) —119
CITY OF )id.;///a
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND
BALANCES — ACTUAL & BUDGET - NONMAJOR SPECIAL REVENUE FUNDS
December 31, 2012
With comparative totals for December 31, 2011 Page 16 of 20
173 — TOURISM PROMOTION AREA
Variance with
— Budgeted Amounts — Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues
Taxes $586,000 $636,000 $642,688 $6,688
Expenditures
Current
Cultural & Recreational Environment 586,000 636,000 632,725 3,275
Excess of Revenues Over (Under) Expenditures $0 $0 $9,963 $9,963
Net Change in Fund Balances 0 0 9,963 9,963
Fund Balances, January 1 414 414 68,722 68,308
Fund Balances, December 31 $414 $414 $78,685 $78,271
The Notes to the Financial Statements, found in the Basic Financial Section, are an integral part of this statement.
120 Comprehensive Annual Financial Report (CAFR)
CITY OF );
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND
BALANCES — ACTUAL & BUDGET - NONMAJOR SPECIAL REVENUE FUNDS
December 31, 2012
With comparative totals for December 31, 2011 Page 17 of 20
174 — PFD - CAPITOL THEATRE
Variance with
— Budgeted Amounts — Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues
Taxes $500,000 $500,000 $526,500 $26,500
Interest 500 500 710 210
Total Revenues 500,500 500,500 527,210 26,710
Expenditures
Current
Cultural & Recreational Environment 12,000 12,000 12,686 (686)
Excess of Revenues Over (Under) Expenditures $488,500 $488,500 $514,524 $26,024
Other Financing Sources (Uses)
Transfers (Out) ($505,000) ($505,000) ($504,300) $700
Net Change in Fund Balances (16,500) (16,500) 10,224 26,724
Fund Balances, January 1 53,357 53,357 43,113 (10,244)
Fund Balances, December 31 $36,857 $36,857 $53,337 $16,480
The Notes to the Financial Statements, found in the Basic Financial Section, are an integral part of this statement.
Comprehensive Annual Financial Report (CAFR) —121
CITY OF )id.;///a
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND
BALANCES — ACTUAL & BUDGET - NONMAJOR SPECIAL REVENUE FUNDS
December 31, 2012
With comparative totals for December 31, 2011 Page 18 of 20
198 — CAPITOL THEATRE RESERVE
Variance with
— Budgeted Amounts — Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues
Interest $500 $500 $10,000 $9,500
Excess of Revenues Over (Under) Expenditures $500 $500 $10,000 $9,500
Other Financing Sources (Uses)
Transters (Out) ($71,927) ($71,927) ($71,927) $0
Net Change in Fund Balances (71,427) (71,427) (61,927) 9,500
Fund Balances, January 1 310,338 310,338 313,849 3,511
Fund Balances, December 31 $238,911 $238,911 $251,922 $13,011
The Notes to the Financial Statements, found in the Basic Financial Section, are an integral part of this statement.
122 Comprehensive Annual Financial Report (CAFR)
CITY OF );
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND
BALANCES — ACTUAL & BUDGET - NONMAJOR SPECIAL REVENUE FUNDS
December 31, 2012
With comparative totals for December 31, 2011 Page 19 of 20
199 — RECOVERY PROGRAM GRANTS
Variance with
— Budgeted Amounts — Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues
Intergovernmental Revenues $0 $73,905 $37,348 ($36,557)
Expenditures
Current
General Government 0 23,500 32,999 (9,499)
Security of Persons and Property 0 16,500 2,497 14,003
Transportation 0 18,500 0 18,500
Economic Environment 0 15,405 1,852 13,553
Total Expenditures 0 73,905 37,348 36,557
Excess of Revenues Over (Under) Expenditures $0 $0 $0 $0
Net Change in Fund Balances 0 0 0 0
Fund Balances, January 1 0 0 0 0
Fund Balances, December 31 $0 $0 $0 $0
The Notes to the Financial Statements, found in the Basic Financial Section, are an integral part of this statement.
Comprehensive Annual Financial Report (CAFR) —123
CITY OF );
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND
BALANCES - ACTUAL & BUDGET - NONMAJOR SPECIAL REVENUE FUNDS
December 31, 2012
With comparative totals for December 31, 2011 Page 20 of 20
TOTAL
Variance with
Budgeted Amounts -- Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues
Taxes $8,139,700 $8,189,700 $8,750,070 $560,370
Intergovernmental Revenues 9,817,722 10,019,440 7,542,500 (2,476,940)
Charges for Services 1,655,923 1,655,923 1,377,823 (278,100)
Fines & Forfeits 30,000 30,000 30,000 0
Interest 10,135 10,135 52,443 42,308
Other Revenues 1,906,221 1,906,221 1,917,643 11,422
Total Revenues 21,559,701 21,811,419 19,670,479 (2,140,940)
Expenditures
Current
General Government $190,881 $214,381 $219,077 (4,696)
Security of Persons and Property 5,499,008 5,680,437 5,254,222 426,215
Physical Environment 265,699 265,699 264,453 1,246
Transportation 4,839,410 5,101,696 5,125,947 (24,251)
Economic Environment 1,576,287 1,591,692 963,559 628,133
Cultural & Recreational Environment 6,121,004 6,119,629 6,119,174 455
Capital Outlay
Security of Persons and Property 70,000 70,000 20,620 49,380
Transportation 3,843,400 3,843,400 1,925,229 1,918,171
Cultural & Recreational Environment 337,000 400,653 31,987 368,666
Debt Service
Principal Retirement 157,558 157,558 148,192 9,366
Interest 10,200 10,200 8,125 2,075
Total Expenditures 22,910,447 23,455,345 20,080,585 3,374,760
Excess of Revenues Over (Under) Expenditures ($1,350,746) ($1,643,926) ($410,106) $1,233,820
Other Financing Sources (Uses)
Transfers In $2,422,626 $2,422,626 $2,771,058 $348,432
Transfers (Out) (1,859,277) (1,899,277) (1,973,577) (74,300)
Intergovernmental Agreements 12,666 12,666 0 (12,666)
Comp for Loss of General Capital Assets 75,000 75,000 92,474 17,474
Total Other Financing Sources (Uses) 651,015 611,015 889,955 278,940
Net Change in Fund Balances (699,731) (1,032,911) 479,849 1,512,760
Fund Balances, January 1 4,388,603 4,388,603 5,357,034 968,431
Fund Balances, December 31 $3,688,872 $3,355,692 $5,836,883 $2,481,191
The Notes to the Financial Statements, found in the Basic Financial Section, are an integral part of this statement.
124 Comprehensive Annual Financial Report (CAFR)
CITY OF ) X iNa
NONMAJOR DEBT SERVICE FUNDS
Local Improvement District Guaranty Fund (221) — This fund is for the purpose of guaranteeing, to the
extent of the fund, the payment of its local improvement bonds and warrants issued to pay for the local
improvement ordered, subsequent to April 7, 1926
Convention Center Addition Bonds (272) — The proceeds were used for additions to the Yakima Convention
Center
Various General Obligation Bonds Fund (281) — The proceeds are for the purpose of providing various
projects such as Parks, Streets, Fire and Downtown Revitalization.
Various Purpose Bond Fund (283) — These proceeds are for the purpose of providing for part of the funds to
pay the cost of acquiring, constructing, and equipping a new Law and Justice Facility ($5,600,000), and
improvements to the Yakima Avenue / I -82 Interchange ($1,200,000)
Fire Improvement / Refunding General Obligation Bond Issues (284) — These proceeds are for the purpose
of providing funds to acquire, construct and equip fire fighting facilities. This issue also refunded the 1988 Parks
and 1986 Street Improvement Bond Issue and Recreation Bond Issue (the Parks and Streets portion was paid in
full prior to 2003)
Limited Tax General Obligation Bond (287) — The proceeds were used to expand the Convention Center
Local Improvement District Debt Control (289) — The proceeds are for the purpose of providing funds to pay
the bonds or notes issued for local improvement districts' construction from the collection of assessments levied
on the property owner
Comprehensive Annual Financial Report (CAFR) —125
CITY OF ) Xiilla
COMBINING BALANCE SHEET
NONMAJOR DEBT SERVICE FUNDS
December 31, 2012
With comparative totals for December 31, 2011 Page 1 of 2
#221 #272 #281 #283
LID ConvCtr Various Crim Just /
Guaranty PFD GO Bonds I -82 Refund
Assets
Cash & Equity in Pooled Investments $60,164 $168,506 $161,556 $96,934
Receivables
Taxes 0 0 0 0
LIDAssessments - Delinquent 0 0 0 0
LIDAssessments - Deterred 0 0 0 0
Total Assets $60,164 $168,506 $161,556 $96,934
Liabilities and Fund Balances
Liabilities
Mature Interest Payable $0 $0 $45,203 $0
Mature Bonds Payable 0 0 101,614 0
Deterred Revenue 0 0 0 0
Custodial Accounts 0 0 0 0
Total Liabilities 0 0 146,817 0
Fund Balances
Restricted 0 168,506 0 96,934
Committed 0 0 0 0
Assigned 60,164 0 14,739 0
Total Fund Balances 60,164 168,506 14,739 96,934
Total Liabilities and Fund Balances $60,164 $168,506 $161,556 $96,934
The Notes to the Financial Statements, found in the Basic Financial Section, are an integral part of this statement.
126 Comprehensive Annual Financial Report (CAFR)
CITY OF )1(1!2//a
COMBINING BALANCE SHEET
NONMAJOR DEBT SERVICE FUNDS
December 31, 2012
With comparative totals for December 31, 2011 Page 2 of 2
#284 #287 #289 Total
Fire & Convention Local Impr
Parks Ref Center Districts 2012 2011
$189,345 $65,220 $1,840 $743,565 $621,909
10,577 0 0 $10,577 11,936
0 0 52,314 52,314 46,049
0 0 503,206 503,206 658,092
$199,922 $65,220 $557,360 $1,309,662 $1,337,986
$0 $0 $0 $45,203 $0
0 0 0 101,614 0
0 0 503,206 503,206 658,092
0 0 3,650 3,650 100
0 0 506,856 653,673 658,192
199,922 65,220 0 530,582 546,988
0 0 50,504 50,504 47,250
0 0 0 74,903 85,556
199,922 65,220 50,504 655,989 679,794
$199,922 $65,220 $557,360 $1,309,662 $1,337,986
The Notes to the Financial Statements, found in the Basic Financial Section, are an integral part of this statement.
Comprehensive Annual Financial Report (CAFR) -127
CITY OF );
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES — NONMAJOR DEBT SERVICE FUNDS
December 31, 2012
With comparative totals for December 31, 2011 Page 1 of 2
#221 #272 #281 #283
LID Cony Ctr Various Crim Just /
Guaranty PFD GO Bonds I -82 Refund
Revenues
Taxes $0 $0 $0 $392,568
Intergovernmental Revenues 0 108,895 0 0
Interest 75 0 0 0
Other Revenues 0 0 0 0
Total Revenues 75 108,895 0 392,568
Expenditures
Debt Service
Principal Retirement 0 440,000 711,614 485,000
Interest 0 578,252 266,103 30,175
Total Expenditures 0 1,018,252 977,717 515,175
Excess of Rev Over (Under) Expenditures $75 ($909,357) ($977,717) ($122,607)
Other Financing Sources (Uses)
Transfers In $0 $907,300 $986,989 $112,000
Transfers (Out) (20,000) 0 0 0
Total other Financing Sources (Uses) (20,000) 907,300 986,989 112,000
Net Change in Fund Balances (19,925) (2,057) 9,272 (10,607)
Fund Balances, January 1 80,089 170,563 5,467 107,541
Fund Balances, December 31 $60,164 $168,506 $14,739 $96,934
The Notes to the Financial Statements, found in the Basic Financial Section, are an integral part of this statement.
128 Comprehensive Annual Financial Report (CAFR)
CITY OF );
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES - NONMAJOR DEBT SERVICE FUNDS
December 31, 2012
With comparative totals for December 31, 2011 Page 2 of 2
#284 #287 #289 Total
Fire & Convention Local Impr
Parks Ref Center Districts 2012 2011
$291,348 $428,000 $0 $1,111,916 $1,119,121
0 0 0 108,895 108,895
0 1,100 40,275 41,450 37,189
0 0 154,886 154,886 141,704
291,348 429,100 195,161 1,417,147 1,406,909
265,000 320,000 153,000 2,374,614 2,248,881
28,875 110,315 42,433 1,056,153 1,125,992
293,875 430,315 195,433 3,430,767 3,374,873
($2,527) ($1,215) ($272) ($2,013,620) ($1,967,964)
$0 $0 $20,000 $2,026,289 $2,009,389
0 0 (16,474) (36,474) (17,137)
0 0 3,526 1,989,815 1,992,252
(2,527) (1,215) 3,254 (23,805) 24,288
202,449 66,435 47,250 679,794 655,506
$199,922 $65,220 $50,504 $655,989 $679,794
The Notes to the Financial Statements, found in the Basic Financial Section, are an integral part of this statement.
Comprehensive Annual Financial Report (CAFR) -129
130 — Comprehensive Annual Financial Report (CAFR)
CITY OF Xi-/.2 a
NONMAJOR CAPITAL PROJECT FUNDS
Central Business District Improvement Fund (321) - Created by Ordinance No 1599 The Central Business
District Improvement Program is developing a long range guide for evaluating proposals for physical changes and
the scheduling of improvements to the Central Business District. Resources are derived from private contributions
and transfers from other funds.
Capitol Theatre Construction Fund (322) — Created by Ordinance 1654 on April 15, 1974. The purpose of this
fund was for the acquisition of the Capitol Theatre and capital repairs to that building. The Theatre was
destroyed by fire in 1975 After the Theatre was rebuilt in 1978, the fund was deactivated. The fund was then
reactivated in 2007 when additional funding for renovation became available.
Yakima Revenue Development Area (323) — Created by Ordinance 2011 -31 on July 19, 2011 This fund was
created to establish a capital fund to account for the activity of the Yakima Revenue Development Area, and
utilizes the Washington State Local Infrastructure Financing Tool (LIFT) program, which authorizes the City to
use state sales and excise tax revenue to finance public infrastructure needed to accelerate redevelopment of the
former sawmill site.
Parks and Recreation Capital Fund (331) — Created to receive the proceeds from bond issues approved by the
voters for improvements to City parks. This fund continues to accumulate resources for Park capital
improvement projects. Revenues consist of grants, interest earnings, contributions and transfers from the Parks
and Recreation operating fund.
Fire Capital Fund (332) — Created for the accumulation of moneys to be used to acquire fire fighting and fire
training equipment and facilities, including real property, for the City of Yakima Fire Department. Funding
sources include Bond Issues, contributions from other funds for equipment replacement, investment income, and
proceeds from sale of fire equipment and retired stations.
Law and Justice Capital Fund (333) — Created in 1990 for the purpose of constructing capital facilities for the
City's Law and Justice Programs. Funds are provided by an allocation of local Criminal Justice Sales Tax, grants,
and interest earnings.
Public Works Trust Construction Fund (342) — Accounts for the moneys received from the Washington State
Department of Community Development. The City has received Public Works Trust Fund loans for approved
public works projects. A Real Estate Tax of 1/4% will be utilized to repay the loans.
REET 2 Capital Fund (343) — Created in 2005 to track Capital improvement projects funded with the second 1/4%
of Real Estate Excise Tax.
Convention Center Capital Improvement Fund (370) — Was established for the Convention Center and
Performing Arts Center Facilities and is used for paying all or any part of the cost of acquiring, constructing or
operating convention center facilities. The fund was originally created by Ordinance 1624, February 19, 1974. In
2002, proceeds from a $6.6 million bond issue were used to expand the Convention Center An allocation of local
option Hotel / Motel Tax and interest earnings are this fund's primary revenue sources.
Cumulative Reserve Fund (392) — Originally created by Ordinance 1265 in 1970 for Capital Improvements, and
placed one -half of all the revenue derived from sales tax into this fund. In 1973, Ordinance 1477 amended the
funding source to be only transfers from other funds and investment earnings. Any expenditure from the fund
must be authorized by the City Council and must be for capital purposes generally in excess of $10,000 per capital
project, excluding utility improvements.
Comprehensive Annual Financial Report (CAFR) —131
CITY OF );
COMBINING BALANCE SHEET
NONMAJOR CAPITAL PROJECT FUNDS
December 31, 2012
With comparative totals for December 31, 2011 Page 1 of 2
#321 #322 323 #331 #332
Central Bus Capitol Yakima Rev Parks and
Dist Impr Thtr Const Dev Area Recreation Fire
Assets
Cash & Equity in Pooled Investments $340,634 $619 $129,073 $167,415 $474,565
Receivables
Accounts 120 0 0 0 627
Other Receivables 0 0 0 0 0
Due from Other Government Units 0 0 0 0 0
Investments, at Amortized Cost 0 0 862,601 0 0
Total Assets $340,754 $619 $991,674 $167,415 $475,192
Liabilities and Fund Balances
Liabilities
Warrants /Accounts Payable $4,186 $0 $320,391 $0 $4,375
Contracts Payable 0 0 0 0 0
Due to Other Government Units 1,024 0 0 0 0
Deferred Revenue 120 0 0 10,871 0
Total Liabilities 5,330 0 320,391 10,871 4,375
Fund Balances
Restricted 0 0 0 0 0
Committed 335,424 0 671,283 0 0
Assigned 0 619 0 156,544 470,817
Total Fund Balances 335,424 619 671,283 156,544 470,817
Total Liabilities and Fund Balances $340,754 $619 $991,674 $167,415 $475,192
The Notes to the Financial Statements, found in the Basic Financial Section, are an integral part of this statement.
132 Comprehensive Annual Financial Report (CAFR)
CITY OF );
COMBINING BALANCE SHEET
NONMAJOR CAPITAL PROJECT FUNDS
December 31, 2012
With comparative totals for December 31, 2011 Page 2 of 2
#333 #342 #343 #370 #392 Total
Law and Public Works REET 2 Cap Convention Cumulative
Justice Construction Construction Center Reserve 2012 2011
$269,837 $158,328 $437,954 $76,309 $223,784 $2,278,518 $2,325,533
6,919 0 0 0 0 7,666 69,814
0 0 0 0 1,044,944 1,044,944 0
115,072 0 0 0 48,825 163,897 146,728
0 563,936 0 509,977 1,495,562 3,432,076 1,276,000
$391,828 $722,264 $437,954 $586,286 $2,813,115 $6,927,101 $3,818,075
$119,451 $8,033 $0 $48,519 $145,258 $650,213 $390,028
0 0 0 0 0 0 14,284
0 18,618 0 0 0 19,642 265
0 0 0 0 0 10,991 10,871
119,451 26,651 0 48,519 145,258 680,846 415,448
0 695,613 437,954 537,767 2,667,857 $4,339,191 1,545,542
0 0 0 0 0 1,006,707 1,113,990
272,377 0 0 0 0 900,357 743,095
272,377 695,613 437,954 537,767 2,667,857 6,246,255 3,402,627
$391,828 $722,264 $437,954 $586,286 $2,813,115 $6,927,101 $3,818,075
The Notes to the Financial Statements, found in the Basic Financial Section, are an integral part of this statement.
Comprehensive Annual Financial Report (CAFR) -133
CITY OF ) Xiilla
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES - NONMAJOR CAPITAL PROJECT FUNDS
December 31, 2012
With comparative totals for December 31, 2011 Page 1 of 2
#321 #322 323 #331 #332
Central Bus Capitol Yakima Rev Parks and
Distlmpr ThtrConst DevArea Recreation Fire
Revenues
Taxes $0 $0 $305,943 $0 $0
Intergovernmental Revenues 0 0 0 51,331 35,321
Interest 5,000 0 10,000 2,000 8,000
Other Revenues 42,086 0 0 60,000 282,806
Total Revenues 47,086 0 315,943 113,331 326,127
Expenditures
Current
General Government 0 0 0 0 0
Security ot Persons and Property 0 0 0 0 171,974
Transportation 0 0 0 0 0
Economic Environment 24,510 0 0 0 0
Cultural & Recreational Environment 47 ,700 3,201 0 8,446 0
Capital Outlay
General Government 0 0 0 0 0
Security ot Persons and Property 0 0 0 0 29,161
Transportation 0 0 1,038,532 0 0
Economic Environment 0 0 0 0 0
Cultural & Recreational Environment 0 0 0 810,615 0
Debt Service
Principal Retirement 0 0 245,212 0 50,597
Interest 0 0 15,792 0 19,361
Total Expenditures 72,210 3,201 1,299,536 819,061 271,093
Excess ot Rev Over (Under) Expenditures ($25,124) ($3,201) ($983,593) ($705,730) $55,034
Other Financing Sources (Uses)
Proceeds trom Capital Lease Financing $0 $0 $0 $0 $0
Proceeds trom Intergovernmental Loans 0 0 0 0 0
Other Note Proceeds 0 0 0 600,000 0
Transters In 0 2,000 900,000 185,000 0
Transters (Out) 0 0 0 0 0
Intergovernmental Agreements 0 0 0 0 0
Sale ot Capital Assets 0 0 0 0 6,122
Comp For Loss ot Gen. Capital Assets 1,434 0 0 0 0
Total other Financing Sources (Uses) 1,434 2,000 900,000 785,000 6,122
Net Change in Fund Balances (23,690) (1,201) (83,593) 79,270 61,156
Fund Balances, January 1 359,114 1,820 754,876 77,274 409,661
Fund Balances, December 31 $335,424 $619 $671,283 $156,544 $470,817
The Notes to the Financial Statements, found in the Basic Financial Section, are an integral part of this statement.
134 Comprehensive Annual Financial Report (CAFR)
CITY OF );
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES - NONMAJOR CAPITAL PROJECT FUNDS
December 31, 2012
With comparative totals for December 31, 2011 Page 2 of 2
#333 #342 #343 #370 #392 Total
Law and Public Works REET 2 Cap Convention Cumulative
Justice Construction Construction Center Reserve 2012 2011
$371,518 $563,801 $563,801 $170,106 $0 $1,975,169 $1,675,261
402,123 0 0 46,151 61,683 596,609 1,279,484
8,000 10,000 8,000 3,000 0 54,000 15,750
0 0 0 4,895 1,044,944 1,434,731 248,947
781,641 573,801 571,801 224,152 1,106,627 4,060,509 3,219,442
0 0 0 0 0 0 2,867
515,140 0 0 0 0 687,114 413,668
0 0 250,000 0 30,149 280,149 250,000
0 0 0 0 0 24,510 21,884
0 0 0 211,825 0 271,172 473,759
0 48,661 0 0 387,691 436,352 27,622
438,706 0 0 0 0 467,867 1,057,937
0 0 0 0 1,779,956 2,818,488 622,870
0 0 0 0 0 0 34,745
0 5,666 0 0 0 816,281 858,885
0 154,386 0 0 0 450,195 215,055
0 21,635 0 0 0 56,788 4,254
953,846 230,348 250,000 211,825 2,197,796 6,308,916 3,983,546
($172,205) $343,453 $321,801 $12,327 ($1,091,169) ($2,248,407) ($764,104)
$0 $0 $0 $0 $0 $0 $576,846
0 0 0 0 450,101 450,101 500,000
0 0 0 0 0 600,000 0
190,242 0 0 106,000 0 1,383,242 336,205
0 (342,542) (256,822) 0 0 (599,364) (589,364)
0 (58,425) 0 0 0 (58,425) (58,425)
0 0 0 0 0 6,122 15,000
0 0 0 0 0 1,434 0
190,242 (400,967) (256,822) 106,000 450,101 1,783,110 780,262
18,037 (57,514) 64,979 118,327 (641,068) (465,297) 16,158
254,340 753,127 372,975 419,440 3,308,925 6,711,552 3,386,469
$272,377 $695,613 $437,954 $537,767 $2,667,857 $6,246,255 $3,402,627
The Notes to the Financial Statements, found in the Basic Financial Section, are an integral part of this statement.
Comprehensive Annual Financial Report (CAFR) -135
136 — Comprehensive Annual Financial Report (CAFR)
CITY OF )!(/.Vila
PERMANENT FUND
Cemetery Trust Fund (610) — This non - expendable Trust is credited for all money received from owners for
endowment care. The corpus shall be held forever in trust by the City of Yakima, while interest earnings are
transferred to the Cemetery Fund.
Comprehensive Annual Financial Report (CAFR) —137
CITY OF );
COMBINING BALANCE SHEET
NONMAJOR PERMANENT FUND
December 31, 2012
With comparative totals for December 31, 2011 Page 1 of 1
#610 Total
Cemetery Trust Nonmajor Gov't Funds
2012 2011 2012 2011
Assets
Cash & Equity in Pooled Investments $79,750 $126,420 $6,409,364 $6,026,204
Receivables
Taxes 0 0 284,941 266,881
Accounts 0 0 179,816 439,389
Special Assessments 0 0 67,586 30,435
LID Assessments - Delinquent 0 0 52,314 46,049
LID Assessments - Deferred 0 0 503,206 658,092
Other Receivables 0 0 1,044,944 0
Due from Other Government Units 0 0 687,604 914,749
Inventories 0 0 80,532 0
Investments, at Amortized Cost 532,974 478,000 8,005,387 5,293,000
Total Assets $612,724 $604,420 $17,315,694 $13,674,799
Liabilities and Fund Balances
Liabilities
Warrants /Accounts Payable $0 $0 $980,535 $923,018
Wages/Benefits Payable 0 0 890,817 869,551
Contracts Payable 0 0 70,239 68,153
Due to Other Funds 0 0 1,199 0
Due to Other Government Units 0 0 22,827 3,385
Mature Interest Pavable 0 0 45,203 0
Mature Bonds Pavable 0 0 101,614 0
Deposits Pavable 0 0 394,056 609,981
Deferred Revenue 0 0 604,848 726,316
Custodial Accounts 0 0 852,505 430,520
Total Liabilities 0 0 3,963,843 3,630,924
Fund Balances
Nonspendable 612,724 604,420 693,256 604,420
Restricted 0 0 8,601,156 6,768,189
Committed 0 0 3,082,179 1,842,615
Assigned 0 0 975,260 828,651
Total Fund Balances 612,724 604,420 13,351,851 10,043,875
Total Liabilities and Fund Balances $612,724 $604,420 $17,315,694 $13,674,799
The Notes to the Financial Statements, found in the Basic Financial Section, are an integral part of this statement.
138 Comprehensive Annual Financial Report (CAFR)
CITY OF );
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES - NONMAJOR PERMANENT FUND
December 31, 2012
With comparative totals for December 31, 2011 Page 1 of 1
#610 Total
Cemetery Trust Nonmajor Gov't Funds
2012 2011 2012 2011
Revenues
Taxes $0 $0 $11,837,155 $10,988,672
Intergovernmental Revenues 0 0 8,248,004 9,230,206
Charges for Services 8,304 12,321 1,386,127 1,550,731
Fines and Forfeits 0 0 30,000 30,000
Interest 20,000 9,811 167,893 76,197
Other Revenues 0 0 3,507,260 2,524,598
Total Revenues 28,304 22,132 25,176,439 24,400,404
Expenditures
Current
General Government 0 0 219,077 315,984
Security of Persons and Property 0 0 5,941,336 5,513,805
Physical Environment 0 0 264,453 259,983
Transportation 0 0 5,406,096 5,454,883
Economic Environment 0 0 988,069 1,337,345
Cultural & Recreational Environment 0 0 6,390,346 6,496,942
Capital Outlay
General Government 0 0 436,352 27,622
Security of Persons and Property 0 0 488,487 1,057,937
Transportation 0 0 4,743,717 2,532,317
Economic Environment 0 0 0 34,745
Cultural & Recreational Environment 0 0 848,268 1,025,822
Debt Service
Principal Retirement 0 0 2,973,001 2,663,555
Interest 0 0 1,121,066 1,143,173
Total Expenditures 0 0 29,820,268 27,864,113
Excess of Rev Over (Under) Expenditures $28,304 $22,132 ($4,643,829) ($3,463,709)
Other Financing Sources (Uses)
Proceeds from Capital Lease Financing $0 $0 $0 $576,846
Proceeds from Intergovernmental Loans 0 0 450,101 500,000
Other Note Proceeds 0 0 600,000 0
Transfers In 0 0 6,180,589 4,696,104
Transfers (Out) (20,000) (9,811) (2,629,415) (2,318,864)
Intergovernmental Agreements 0 0 (58,425) (58,425)
Sale of Capital Assets 0 0 6,122 15,000
Comp. For Loss of Gen. Capital Assets 0 0 93,908 175,814
Total other Financing Sources (Uses) (20,000) (9,811) 4,642,880 3,586,475
Net Change in Fund Balances 8,304 12,321 (949) 122,766
Fund Balances, January 1 604,420 592,099 13,352,800 9,921,109
Fund Balances, December 31 $612,724 $604,420 $13,351,851 $10,043,875
The Notes to the Financial Statements, found in the Basic Financial Section, are an integral part of this statement.
Comprehensive Annual Financial Report (CAFR) -139
140 — Comprehensive Annual Financial Report (CAFR)
CITY OF )Ct/J/I1it
NONMAJOR PROPRIETARY FUNDS
Refuse Fund (471) - A self supporting fund. This fund was established for the purpose of accumulating moneys
derived from the operation and maintenance of the garbage collection and disposal service of the City, and for the
purpose of defraying all of the operating and maintenance expenses and costs incurred by the City of Yakima in
the collection and disposal of refuse.
Stormwater Fund (976) - Created in 2009, this fund was set up to meet the responsibilities and obligations set
forth by the City's Eastern Washington Phase II Municipal Stormwater Permit and the State mandated
Underground Injection Control (UIC) Program (WAC 173 -218) The Federal and State mandated responsibilities
include collecting, transporting, and treatment of surface water ( stormwater) to protect the environment, public
health and welfare, and assess and comply with regulatory agency requirements.
Comprehensive Annual Financial Report (CAFR) —141
CITY OF );
STATEMENT OF NET POSITION
NONMAJOR PROPRIETARY FUNDS
December 31, 2012
With comparative totals for December 31, 2011 Page 1 of 1
#471 #976 Total
Refuse Stormwater 2012 2011
Assets
Current Assets
Cash & Equity in Pooled Investments $208,521 $325,917 $534,438 $766,045
Receivables
Accounts /Taxes (Net) 515,136 45,334 560,470 460,188
Other Receivables 0 72,398 72,398 0
Due from Other Government Units 0 23,518 23,518 6,900
Investments, at Amortized Cost 0 2,100,964 2,100,964 1,770,000
Total Current Assets 723,657 2,568,131 3,291,788 3,003,133
Noncurrent Assets
Other Improvements 0 1,484,679 1,484,679 1,317,770
Machinery & Equipment 0 27,543 27,543 27,543
Accumulated Depreciation 0 (95,780) (95,780) (58,315)
Construction in Progress 0 475,627 475,627 109,020
Total Noncurrent Assets 0 1,892,069 1,892,069 1,396,018
Total Assets $723,657 $4,460,200 $5,183,857 $4,399,151
Liabilities
Current Liabilities
Warrants /Accounts Payable $91,294 $108,205 $199,499 $112,829
Wages/Benefits Payable 124,632 57,355 181,987 182,868
Compensated Absences Payable 163,874 58,567 222,441 212,747
Deposits Payable 117,417 0 117,417 106,563
Total Current Liabilities $497,217 $224,127 $721,344 $615,007
Net Position
Invested in Capital Assets, Net of Related Debt (as restated) $0 $1,892,069 $1,892,069 $1,396,018
Unrestricted 226,440 2,344,004 2,570,444 2,388,126
Total Net Position $226,440 $4,236,073 $4,462,513 $3,784,144
The Notes to the Financial Statements, found in the Basic Financial Section, are an integral part of this statement.
142 Comprehensive Annual Financial Report (CAFR)
CITY OF );
STATEMENT OF REVENUES, EXPENSES & CHANGES IN FUND NET POSITION
NONMAJOR PROPRIETARY FUNDS
For the Year Ended December 31, 2012
With comparative totals for December 31, 2011 Page 1 of 1
# 471 #976 Total
Refuse Stormwater 2012 2011
Operating Revenues
Charges for Services $5,424,888 $2,183,484 $7,608,372 $6,935,541
Other Operating Revenues 4,633 0 4,633 3,952
Total Operating Revenues 5,429,521 2,183,484 7,613,005 6,939,493
Operating Expenses
Operations and Maintenance 4,915,955 1,012,617 5,928,572 5,429,041
Administration /Overhead 528,995 180,208 709,203 679,072
Taxes 0 217,599 217,599 91,907
Depreciation /Amortization 0 37,465 37,465 22,190
Total Operating Expenses 5,444,950 1,447,889 6,892,839 6,222,210
Operating Income (Loss) (15,429) 735,595 720,166 717,283
Non - Operating Revenues (Expenses)
Operating Grants and Subsidies 8,835 85,110 93,945 263,848
Income (Loss) Before Contributions and Transfers (6,594) 820,705 814,111 981,131
Capital Contributions 0 102,566 102,566 435,106
Transfers (Out) 0 (238,308) (238,308) (265,000)
Change in Net Position (6,594) 684,963 678,369 1,151,237
Total Net Position - January 1 233,034 3,551,110 3,784,144 2,429,440
Prior Period Adjustments 0 0 0 203,467
Total Net Position - December 31 $226,440 $4,236,073 $4,462,513 $3,784,144
The Notes to the Financial Statements, found in the Basic Financial Section, are an integral part of this statement.
Comprehensive Annual Financial Report (CAFR) -143
CITY OF ) Xiilla
STATEMENT OF CASH FLOWS
NONMAJOR PROPRIETARY FUNDS
December 31, 2012
With comparative totals for December 31, 2011 Page 1 of 1
#471 #976 Total
Refuse Stormwater 2012 2011
Cash Flows trom Operating Activities
Cash Received trom Customers $5,321,673 $2,197,270 $7,518,943 $6,999,440
Cash Paid to Suppliers tor Goods and Services (3,330,629) (598,996) (3,929,625) (3,756,151)
Cash Paid tor Salaries and Benetits (1,330,980) (695,967) (2,026,947) (2,002,812)
Other Operating Revenues Collected 4,633 0 4,633 3,952
Cash Paid in Lieu ot Taxes (766,375) (129,962) (896,337) (433,062)
Net Cash Provided by Operating Activities (101,678) 772,345 670,667 811,367
Cash Flows trom Noncapital Financing Activities
Operating Grants Received /Sales Tax 15,735 0 15,735 286,188
Cash Flows trom Capital Financing Activities
Capital Expenditures Paid 0 (443,795) (443,795) (244,486)
Capital Grants Received 0 95,058 95,058 0
Transter Out 0 (238,308) (238,308) (265,000)
Net Cash Used tor Capital Financing Activities 0 (587,045) (587,045) (509,486)
Cash Flows trom Investing Activities
Proceeds trom Sale of Investment Securities 0 1,770,000 1,770,000 1,000,000
Purchase ot Investment Securities 0 (2,100,964) (2,100,964) (1,770,000)
Net Cash Provided by Investing Activities 0 (330,964) (330,964) (770,000)
Net Increase (Decrease) in Cash and Cash Equivalents (85,943) (145,664) (231,607) (181,931)
Cash and Cash Equivalents at Beginning ot Year 294,463 471,582 766,045 947,976
Cash and Cash Equivalents at End ot Year $208,520 $325,918 $534,438 $766,045
Cash at the End ot the Year
Operating Fund Cash $208,521 $325,917 $534,438 $766,045
Reconciliation ot Net Operating Income (Loss) to Net Cash
Provided (Used) by Operating Activities
Net Operating Income (Loss) ($15,429) $735,595 $720,166 $717,283
Adjustments to Reconcile Operating Income (Loss) to Net
Cash Provided by Operating Activities
Depreciation 0 37,465 37,465 22,190
Change in Assets and Liabilities
(Increase) Decrease in Accounts Receivable (128,734) (8,476) (137,210) 45,331
Increase in Allowance tor Uncollectibles 14,665 22,262 36,927 18,568
Increase (Decrease) in Warrants /Accounts Payable 20,323 (15,817) 4,506 27,258
Increase (Decrease) in Wages/Benetits Payable (1,688) 807 (881) (7,453)
Increase (Decrease) in Compensated Absences Payable 9,185 509 9,694 (11,810)
Total Adjustments (86,249) 36,750 (49,499) 94,084
Net Cash Provided by Operating Activities ($101,678) $772,345 $670,667 $811,367
Schedule ot Noncash Capital and Related Financing Activities
Capital Assets Acquired by Noncash Contributions $0 $69,100 $69,100 $435,106
The Notes to the Financial Statements, found in the Basic Financial Section, are an integral part of this statement.
144 Comprehensive Annual Financial Report (CAFR)
CITY OF ) X iNa
INTERNAL SERVICE FUNDS
Unemployment Compensation Reserve Fund (512) - Established in 1978 to provide unemployment
compensation coverage for City employees as required by state law
Employees' Health Benefit Reserve Fund (513) — Established for the transfer of premiums from the operating
funds in order to pay medical and dental costs incurred by persons covered by the Employees' Health Benefit
Plan of the City and to pay expenses incurred in connection with administering that plan.
Workers' Compensation Reserve Fund (514) — Created when City Council adopted Ordinance No 2783
effective July 1, 1984, to self- insure a Workers' Compensation Program for the City employees pursuant to RCW
Chapter 51.14.
Risk Management Reserve Fund (515) — Created by Ordinance No 2941, on February 11, 1986, to account for
general liability and purchased insurance coverage. Funding revenues are contributions from other fund groups
and are planned to match expenses of insurance premiums for coverage in excess of self- insured amounts, claims
resulting from the self - insured program, and operating expenses.
Wellness and Employee Assistance Fund (516) — Established in 1998 to provide the opportunity to all City
employees to improve their physical, mental and emotional well being.
Equipment Rental Fund (551) — A self supporting fund that derives its revenues from charges to departments
for services rendered to their motor vehicles. Vehicles that are owned by this fund are rented to other
departments at a rate sufficient to cover the maintenance and operation cost of each vehicle plus a charge for
depreciation at a rate sufficient to provide for the eventual replacement of each vehicle.
Environmental Fund (555) — Established in 1991 to accumulate a reserve for environmental contingencies,
funded by a surcharge on fuel purchased by the operating funds.
Public Works Administration Fund (560) — Established in 1983 The fund centralizes both the accountability
and costs for supervision of funds which are housed at the Public Works facility
Comprehensive Annual Financial Report (CAFR) —145
CITY OF )!(Mill!
COMBINING STATEMENT OF NET POSITION
INTERNAL SERVICE FUNDS
December 31, 2012
With comparative totals for December 31, 2011 Page 1 of 2
#512 #513 #514 #515
Unemployment Employees' Workers' Risk
Compensation Health Benefit Compensation Management
Reserve Reserve Reserve Reserve
Assets
Current Assets
Cash & Equity in Pooled Investments $366,999 $175,792 $146,375 $172,689
Deposits w/ Fiscal Agent /Trustee 0 12,474 0 0
Receivables
Accounts 18,779 1,150,464 75,255 0
Interftmd Loan Receivable 0 0 0 0
Inventories 0 0 0 0
Investments, at Amortized Cost 0 1,174,828 978,231 1,154,090
Total Current Assets 385,778 2,513,558 1,199,861 1,326,779
Noncurrent Assets
Buildings 0 0 0 0
Other Improvements 0 0 0 0
Machinery & Equipment 0 0 0 103,375
Accumulated Depreciation 0 0 0 (74,208)
Total Noncurrent Assets 0 0 0 29,167
Total Assets $385,778 $2,513,558 $1,199,861 $1,355,946
Liabilities
Current Liabilities
Warrants /Accounts Payable $0 $20,281 $94,673 $234,735
Wages/Benefits Payable 3,063 12,295 8,059 55,188
Compensated Absences Payable 6,568 14,895 6,690 61,656
Claims and Judgments Payable 23,052 1,448,732 486,807 1,219,000
Total Current Liabilities $32,683 $1,496,203 $596,229 $1,570,579
Net Position
Invested in Capital Assets, net of related debt $0 $0 $0 $29,167
Unrestricted 353,095 1,017,355 603,632 (243,800)
Total Net Position $353,095 $1,017,355 $603,632 ($214,633)
The Notes to the Financial Statements, found in the Basic Financial Section, are an integral part of this statement.
146 Comprehensive Annual Financial Report (CAFR)
CITY OF );
COMBINING STATEMENT OF NET POSITION
INTERNAL SERVICE FUNDS
December 31, 2012
With comparative totals for December 31, 2011 Page 2 of 2
#516 #551 #555 #560
Public Total
Wellness/ Equipment Works
EAP Rental Environmental Administration 2012 2011
$128,734 $418,422 $441,576 $72,207 $1,922,794 $2,989,338
0 0 0 0 12,474 10,620
0 0 0 0 1,244,498 767,679
0 1,035,819 0 0 1,035,819 0
0 476,254 0 0 476,254 428,843
0 3,371,339 0 477,889 7,156,377 6,735,000
128,734 5,301,834 441,576 550,096 11,848,216 10,931,480
0 0 0 37,397 37,397 37,397
0 0 565,742 7,251 572,993 442,707
48,137 23,275,795 7,572 94,628 23,529,507 22,124,533
(35,143) (14,071,320) (30,153) (114,049) (14,324,873) (13,440,963)
12,994 9,204,475 543,161 25,227 9,815,024 9,163,674
$141,728 $14,506,309 $984,737 $575,323 $21,663,240 $20,095,154
$2,296 $146,722 $2,778 $18,637 $520,122 $500,452
0 76,606 0 57,241 212,452 222,521
0 103,684 0 63,208 256,701 281,012
0 0 0 0 3,177,591 2,915,766
$2,296 $327,012 $2,778 $139,086 $4,166,866 $3,919,751
$12,994 $9,204,475 $543,161 $25,227 $9,815,024 $9,163,674
126,438 4,974,822 438,798 411,010 7,681,350 7,011,729
$139,432 $14,179,297 $981,959 $436,237 $17,496,374 $16,175,403
The Notes to the Financial Statements, found in the Basic Financial Section, are an integral part of this statement.
Comprehensive Annual Financial Report (CAFR) -147
CITY OF );
COMBINING STATEMENT OF REVENUES & CHANGES IN FUND NET POSITION
INTERNAL SERVICE FUNDS
For the Year Ended December 31, 2012
With comparative totals for December 31, 2011 Page 1 of 2
#512 #513 #514 #515
Unemployment Employees' Workers' Risk
Compensation Health Benefit Compensation Management
Reserve Reserve Reserve Reserve
Operating Revenues
Charges for Insurance $0 $0 $0 $2,844,429
Charges for Services 0 0 0 0
Employer Contributions 181,275 8,596,412 948,326 0
Employee Contributions 0 1,788,197 61,910 0
Other Operating Revenue 0 0 0 0
Total Operating Revenues 181,275 10,384,609 1,010,236 2,844,429
Operating Expenses
Operations and Maintenance 7,780 1,022,570 210,522 1,439,582
Administration /Overhead 29,637 199,860 112,510 1,310,366
Depreciation /Amortization 0 0 0 20,675
Other Benefits 112,003 9,624,549 447,900 751,554
Total Operating Expenses 149,420 10,846,979 770,932 3,522,177
Operating Income (Loss) $31,855 ($462,370) $239,304 ($677,748)
Non - Operating Revenues
Other Non - Operating/Grants $0 $970,967 $12,518 $79,981
Interest Revenue 0 90,000 9,000 230,000
Gain (Loss) on Capital Assets Disposition 0 0 0 0
Non - Operating Revenue Net of Expenses $0 $1,060,967 $21,518 $309,981
Change in Net Position
Income (Loss) Before Contributions and Transfers $31,855 $598,597 $260,822 ($367,767)
Capital Contributions 0 0 0 0
Transfers In 0 0 0 0
Total Change in Net Position 31,855 598,597 260,822 (367,767)
Total Net Position - January 1 321,240 418,758 342,810 153,134
Total Net Position - December 31 $353,095 $1,017,355 $603,632 ($214,633)
The Notes to the Financial Statements, found in the Basic Financial Section, are an integral part of this statement.
148 Comprehensive Annual Financial Report (CAFR)
CITY OF );
COMBINING STATEMENT OF REVENUES & CHANGES IN FUND NET POSITION
INTERNAL SERVICE FUNDS
For the Year Ended December 31, 2012
With comparative totals for December 31, 2011 Page 2 of 2
#516 #551 #555 #560
Public Total
Wellness/ Equipment Works
EAP Rental Environmental Administration 2012 2011
$0 $0 $153,341 $0 $2,997,770 $2,658,316
0 5,646,645 0 1,184,331 6,830,976 6,459,409
60,000 0 0 0 9,786,013 9,660,973
0 0 0 0 1,850,107 1,924,168
0 0 0 0 0 904
60,000 5,646,645 153,341 1,184,331 21,464,866 20,703,770
49,803 3,573,554 15,868 560,884 6,880,563 6,572,679
0 308,339 0 536,671 2,497,383 2,358,909
8,359 1,330,831 5,992 4,909 1,370,766 1,341,948
0 0 0 0 10,936,006 11,476,834
58,162 5,212,724 21,860 1,102,464 21,684,718 21,750,370
$1,838 $433,921 $131,481 $81,867 ($219,852) ($1,046,600)
$0 $3,230 $0 $0 $1,066,696 $394,867
0 92,366 0 0 421,366 290,242
0 (40,647) 0 0 (40,647) (46,627)
$0 $54,949 $0 $0 $1,447,415 $638,482
$1,838 $488,870 $131,481 $81,867 $1,227,563 ($408,118)
0 73,840 0 0 73,840 0
0 19,568 0 0 19,568 0
1,838 582,278 131,481 81,867 1,320,971 (408,118)
137,594 13,597,019 850,478 354,370 16,175,403 16,583,521
$139,432 $14,179,297 $981,959 $436,237 $17,496,374 $16,175,403
The Notes to the Financial Statements, found in the Basic Financial Section, are an integral part of this statement.
Comprehensive Annual Financial Report (CAFR) -149
CITY OF ) ; : iX illa
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
For the Year Ended December 31, 2012
With comparative totals for December 31, 2011 Page 1 of 2
#512 #513 #514 #515
Unemployment Employees' Workers' Risk
Compensation Health Benefit Compensation Management
Reserve Reserve Reserve Reserve
Cash Flows from Operating Activities
Cash Received from Customers $0 $0 $0 $0
Contributions Received - Employer and Employee 180,577 9,904,576 1,014,148 2,844,429
Cash Paid to Suppliers tor Goods and Services (8,786) (1,080,243) (225,312) (2,074,460)
Cash Paid tor Salaries and Benefits (29,326) (128,172) (108,422) (560,534)
Cash Paid to Claimants and Beneficiaries (126,823) (9,824,967) (578,674) (278,621)
Net Cash Provided by Operating Activities $15,642 ($1,128,806) $101,740 ($69,186)
Cash Flows from Noncapital Financing Activities
Transfer In /Other Non - Operating Revenue 0 970,967 12,518 79,981
Cash Advances to Other Funds 0 0 0 0
Net Cash Provided by Noncapital Financing Activities 0 970,967 12,518 79,981
Cash Flows from Capital Financing Activities
Cash Received from Disposal of Capital Assets 0 0 0 0
Capital Expenditures Paid 0 0 0 0
Other Non - Operating Capital Revenue 0 0 0 0
Net Cash Used tor Capital Financing Activities 0 0 0 0
Cash Flows from Investing Activities
Proceeds from Sale and Maturity of Investment Securities 0 1,123,000 793,000 860,000
Interest Received on Investments 0 90,000 9,000 230,000
Purchase of Investment Securities 0 (1,174,828) (978,231) (1,154,090)
Net Cash Provided by Investing Activities 0 38,172 (176,231) (64,090)
Net Increase (Decrease) in Cash and Cash Equivalents 15,642 (119,667) (61,973) (53,295)
Cash and Cash Equivalents at Beginning of Year 351,357 295,459 208,348 225,984
Cash and Cash Equivalents at End of Year $366,999 $175,792 $146,375 $172,689
Reconciliation of Net Operating Income (Loss) to Net Cash
Provided (Used) by Operating Activities
Net Operating Income (Loss) $31,855 ($462,370) $239,304 ($677,748)
Adjustments to Reconcile Operating Income (Loss) to Net
Cash Provided by Operating Activities
Depreciation 0 0 0 20,675
Change in Assets and Liabilities
(Increase) Decrease in Deposits w /Fiscal Agent/Trustee 0 (1,854) 0 0
(Increase) Decrease in Accounts Receivable (698) (480,033) 3,912 0
(Increase) Decrease in Inventory 0 0 0 0
Increase (Decrease) in Warrants /Accounts Payable 0 (150,511) 84,053 57,951
Increase (Decrease) in Wages/Benetits Payable 0 1,045 (2,931) 1,544
Increase (Decrease) in Compensated Absences Payable (695) (1,416) (3,910) (608)
Increase (Decrease) in Claims and Judgments Payable (14,820) (33,667) (218,688) 529,000
Total Adjustments ($16,213) ($666,436) ($137,564) $608,562
Net Cash Provided by Operating Activities $15,642 ($1,128,806) $101,740 ($69,186)
The Notes to the Financial Statements, found in the Basic Financial Section, are an integral part of this statement.
150 Comprehensive Annual Financial Report (CAFR)
CITY OF );d2///1/
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
For the Year Ended December 31, 2012
With comparative totals for December 31, 2011 Page 2 of 2
#516 #551 #555 #560
Public - -Total --
Wellness/ Equipment Environmental Works
EAP Rental Administration 2012 2011
$0 $5,646,645 $153,341 $1,184,331 $6,984,317 $6,611,180
60,000 0 0 0 14,003,730 14,132,586
(49,971) (3,039,767) (13,090) (502,051) (6,993,680) (6,753,808)
0 (864,643) 0 (622,241) (2,313,338) (2,421,738)
0 0 0 0 (10,809,085) (11,257,639)
$10,029 $1,742,235 $140,251 $60,039 $871,944 $310,581
0 0 0 0 1,063,466 385,440
0 (1,035,819) 0 0 (1,035,819) 0
0 (1,035,819) 0 0 27,647 385,440
0 88,525 0 0 88,525 269,041
(6,405) (1,927,214) (130,286) (10,312) (2,074,217) (1,911,014)
0 19,568 0 0 19,568 0
(6,405) (1,819,121) (130,286) (10,312) (1,966,124) (1,641,973)
0 3,959,000 0 0 6,735,000 5,491,641
0 92,366 0 0 421,366 290,242
0 (3,371,339) 0 (477,889) (7,156,377) (6,007,000)
0 680,027 0 (477,889) (11) (225,117)
3,624 (432,678) 9,965 (428,162) (1,066,544) (1,171,069)
125,110 851,100 431,611 500,369 2,989,338 4,160,407
$128,734 $418,422 $441,576 $72,207 $1,922,794 $2,989,338
$1,838 $433,921 $131,481 $81,867 ($219,852) ($1,046,600)
8,359 1,330,831 5,992 4,909 1,370,766 1,341,948
0 0 0 0 (1,854) 0
0 0 0 0 (476,819) 39,996
0 (47,411) 0 0 (47,411) (142,001)
(168) 38,525 2,778 (12,959) 19,669 (10,544)
0 (5,683) 0 (4,044) (10,069) (93,691)
0 (7,948) 0 (9,734) (24,311) 2,278
0 0 0 0 261,825 219,195
$8,191 $1,308,314 $8,770 ($21,828) $1,091,796 $1,357,181
$10,029 $1,742,235 $140,251 $60,039 $871,944 $310,581
The Notes to the Financial Statements, found in the Basic Financial Section, are an integral part of this statement.
Comprehensive Annual Financial Report (CAFR) -151
152 — Comprehensive Annual Financial Report (CAFR)
CITY OF a/J/I1it
AGENCY FUNDS
YakCorps (632) — This fund was established in 2011 to account for the fiscal activity of the Yakima Consortium
for Regional Public Safety (YAKCORPS) YAKCORPS consists of a variety of local agencies and governments. It
was formed to operate and maintain a county -wide multi- discipline public safety system. The Inter -Local
Agreement provides for the structure, governance, operations and funding of the Consortium and its activities.
Per the Agreement, the City of Yakima acts as fiscal agent for the Consortium.
Comprehensive Annual Financial Report (CAFR) —153
CITY OF ) ; : d2 / //a
STATEMENT OF NET POSITION
AGENCY FUNDS
December 31, 2012 Page 1 of 1
Balance Balance
As of As of
01/01/12 Additions Deductions 12/31/12
Assets
Cash & Equity in Pooled Investments $136,666 $545,496 $298,582 $383,580
Accounts Receivable 1,921 607,611 593,853 15,679
Total Assets $138,587 $1,153,107 $892,435 $399,259
Liabilities
Warrants /Accounts Payable $96,474 $7,058 $96,474 $7,058
Accrued Liabilities 42,113 793,385 443,297 392,201
Total Liabilities $138,587 $800,443 $539,771 $399,259
The Notes to the Financial Statements, found in the Basic Financial Section, are an integral part of this statement.
154 Comprehensive Annual Financial Report (CAFR)
CITY OF )!(/ll /lla
CAPITAL ASSET SCHEDULES
These are assets used in operations funded by governmental funds. Capital assets include any asset with a cost of
$5,000 or more and an expected useful life of at least two years. This includes all capital assets of the City except
for those used in Enterprise or Internal Service Funds.
Schedule of Capital Assets by Function and Activity —A report allocating components of capital assets (land,
building, construction in progress, improvements, and machinery and equipment) to various City functions and
programs.
Schedule of Changes in Capital Assets by Functions and Activity — A report that shows additions and
deletions of total capital assets within separate City functions and programs.
Schedule of Capital Assets by Source — A report that summarizes major funding sources for City capital assets.
Comprehensive Annual Financial Report (CAFR) —155
CITY OF ) X i117a
SCHEDULE BY FUNCTION AND ACTIVITY
GOVERNMENTAL FUND CAPITAL ASSETS"
December 31, 2012 Page 1 of 2
Balance
as of
12/31/12 Land
General Government
City Council / Manager / Clerks $1,191,085 $0
Finance (Finance, Information Systems, Utility Services) 2,035,776 0
Human Resources 8,239 0
Legal 20,305 0
Municipal Court 64,576 0
Codes / Planning / City Hall 2,925,801 34,000
Engineering 44,732 0
Miscellaneous General Government 1,873,372 1,485,681
Total General Government $8,163,886 $1,519,681
Public Safety_
Fire $14,146,926 $297,389
Police 17,734,716 2,589,641
Total Public Safety $31,881,642 $2,887,030
Physical Environment
LID Construction $1,614 $0
Cemetery 754,248 477,660
Total Physical Environment $755,862 $477,660
Transportation
Streets $148,094,232 $2,117,793
Arterial Street 96,407,810 2,537,797
Transportation (Trolley) 1,049,397 28,500
Total Transportation $245,551,439 $4,684,090
Economic Environment
Senior Citizen Center $3,500,000 $0
Community Development 1,877,656 398,748
Central Business District 12,919,594 0
Total Economic Environment $18,297,250 $398,748
Culture and Recreation
Bicentennial Pavilion (Original Convention Center) $9,309,775 $1,193,729
Parks and Recreation 17,056,289 2,666,102
Southeast Community Center 634,846 60,579
Capitol Theatre 13,831,717 80,000
Cable TV 304,158 0
Convention Center 6,638,529 162,608
Gateway - Visitor Center 601,044 0
Total Culture and Recreation $48,376,358 $4,163,018
Total $353,026,437 $14,130,227
(1) This schedule presents only the capital asset balances related to governmental funds. Accordingly, the capital assets
reported in the internal service funds are excluded from the above amounts. Generally, the capital assets of internal service
funds are included as governmental /enterprise activities in the statement of net position.
The Notes to the Financial Statements, found in the Basic Financial Section, are an integral part of this statement.
156 Comprehensive Annual Financial Report (CAFR)
CITY OF );
SCHEDULE BY FUNCTION AND ACTIVITY
GOVERNMENTAL FUND CAPITAL ASSETS"
December 31, 2012 Page 2 of 2
Construction
Buildings Improvements Infrastructure Equipment in Progress
$1,135,895 $13,094 $0 $42,096 $0
51,280 17,669 0 1,966,827 0
0 0 0 8,239 0
8,695 0 0 11,610 0
0 0 0 64,576 0
2,851,547 40,254 0 0 0
0 0 0 44,732 0
0 0 0 387,691 0
$4,047,417 $71,017 $0 $2,525,771 $0
$7,404,012 $105,726 $0 $6,339,799 $0
11,461,769 109,683 0 3,573,623 0
$18,865,781 $215,409 $0 $9,913,422 $0
$0 $0 $0 $0 $1,614
135,841 140,747 0 0 0
$135,841 $140,747 $0 $0 $1,614
$0 $221,699 $145,492,860 $261,880 $0
0 1,085,365 63,613,231 78,236 29,093,181
209,324 192,205 0 175,000 444,368
$209,324 $1,499,269 $209,106,091 $515,116 $29,537,549
$3,500,000 $0 $0 $0 $0
52,161 13,050 1,168,551 48,771 196,375
0 336,913 11,475,959 68,190 1,038,532
$3,552,161 $349,963 $12,644,510 $116,961 $1,234,907
$7,644,646 $334,337 $0 $137,063 $0
1,863,997 10,347,580 0 52,157 2,126,453
574,267 0 0 0 0
13,459,420 0 0 292,214 83
3,407 63,053 0 237,698 0
6,145,685 225,465 0 104,771 0
601,044 0 0 0 0
$30,292,466 $10,970,435 $0 $823,903 $2,126,536
$57,102,990 $13,246,840 $221,750,601 $13,895,173 $32,900,606
The Notes to the Financial Statements, found in the Basic Financial Section, are an integral part of this statement.
Comprehensive Annual Financial Report (CAFR) -157
CITY OF );
SCHEDULE OF CHANGES BY FUNCTION AND ACTIVITY
GOVERNMENTAL FUND CAPITAL ASSETS"
December 31, 2012 Page 1 of 1
Balance Balance
As of As of
01/01/12 Additions Deletions 12/30/12
General Government
City Council / Manager / Clerks $1,191,085 $0 $0 $1,191,085
Finance (Finance, Info Sys, Utility Sys) 2,260,239 111,829 (336,292) 2,035,776
Human Resources 8,239 0 0 8,239
Legal 8,695 11,610 0 20,305
Municipal Court 75,395 0 (10,819) 64,576
Codes / Planning / City Hall 2,877,140 48,661 0 2,925,801
Engineering 44,732 0 0 44,732
Miscellaneous General Government 1,485,681 387,691 0 1,873,372
Total General Government $7,951,206 $559,791 ($347,111) $8,163,886
Public Safety
Fire $14,946,797 $29,161 ($553,646) $14,422,312
Police 17,291,130 561,832 (393,632) 17,459,330
Total Public Safety $32,237,927 $590,993 ($947,278) $31,881,642
Physical Environment
LID Construction $1,614 $0 $0 $1,614
Cemetery 754,249 0 0 754,249
Total Physical Environment $755,863 $0 $0 $755,863
Transportation
Streets $147,619,058 $475,174 $0 $148,094,232
Arterial Street 92,526,907 3,880,903 0 96,407,810
Transportation (Trolley) 1,049,052 345 0 1,049,397
Total Transportation $241,195,017 $4,356,422 $0 $245,551,439
Economic Environment
Senior Citizen Center $3,500,000 $0 $0 $3,500,000
Community Development 1,880,656 0 (3,000) 1,877,656
Central Business District 11,826,062 1,093,532 0 12,919,594
Total Economic Environment $17,206,718 $1,093,532 ($3,000) $18,297,250
Culture and Recreation
Bicentennial Pavilion (Orig Cony Ctr) $9,309,775 $0 $0 $9,309,775
Parks and Recreation 15,764,047 1,292,243 0 17,056,290
Southeast Community Center 634,846 0 0 634,846
Capitol Theatre 13,831,717 0 0 13,831,717
Cable TV 362,944 0 (58,786) 304,158
Convention Center 6,638,529 0 0 6,638,529
Gateway - Visitor Center 601,044 0 0 601,044
Total Culture and Recreation $47,142,902 $1,292,243 ($58,786) $48,376,359
Total $346,489,633 $7,892,981 ($1,356,175) $353,026,439
(1) This schedule presents only the capital asset balances related to governmental funds. Accordingly, the capital
in the internal service funds are excluded from the above amounts. Generally, the capital assets of internal service
funds are included as governmental /enterprise activities in the statement of net position.
The Notes to the Financial Statements, found in the Basic Financial Section, are an integral part of this statement.
158 Comprehensive Annual Financial Report (CAFR)
CITY OF );
SCHEDULE OF CHANGES
IN GENERAL FIXED ASSETS (1)
December 31, 2012 Page 1 of 1
Beginning Ending
Balance Additions Deletions Adjustments Balance
General Capital Assets
Land $13,993,226 $68,400 $0 $179,519 $14,241,145
Buildings 56,659,081 450,223 (6,312) 0 57,102,992
Improvements other than Buildings 13,177,815 66,666 (4,507) 0 13,239,974
Infrastructure 219,555,174 475,174 0 26,927,094 246,957,442
Equipment 13,299,314 1,108,867 (1,156,352) 7,999 13,259,828
Construction in Progress 28,973,806 5,723,652 0 (27,114,612) 7,582,846
Capitalized Leases 831,216 0 (189,004) 0 642,212
Total General Capital Assets $346,489,632 $7,892,982 ($1,356,175) $0 $353,026,439
Investment in General Capital Assets
1984 Physical Inventory $15,920,370 $0 $0 $0 $15,920,370
Federal Grants 1,991,957 0 (3,000) 0 1,988,957
State Grants 551,428 0 0 0 551,428
Interlocal Grants 143,728,214 0 0 0 143,728,214
General Fund 2,450,674 225,945 (414,131) 0 2,262,488
Special Revenue Funds 3,429,066 1,977,836 (334,172) 0 5,072,730
Federal Revenue Sharing 394,765 0 0 0 394,765
General Obligation Bond 27,923,603 0 0 0 27,923,603
Capital Projects 45,750,241 2,227,266 (604,873) 0 47,372,634
Grants /GOB /Local Match 98,595,577 2,311,723 0 0 100,907,300
Private Contributions 5,753,737 1,150,211 0 0 6,903,948
Total Invest in General Capital Assets $346,489,632 $7,892,981 ($1,356,176) $0 $353,026,437
(1) This schedule presents only the capital asset balances related to governmental funds. Accordingly, the capital assets reported
in the internal service funds are excluded from the above amounts. Generally, the capital assets of internal service
funds are included as governmental /enterprise activities in the statement of net position.
The Notes to the Financial Statements, found in the Basic Financial Section, are an integral part of this statement.
Comprehensive Annual Financial Report (CAFR) —159
160 — Comprehensive Annual Financial Report (CAFR)
CITY OF )!(/ll /lla
SUPPLEMENTAL SCHEDULES
Schedule 9 Long -Term Debt — This schedule provides information about the long -term debt for the City of
Yakima. It is also used to corroborate the amounts of long -term debt shown on any balance sheets and the
amounts of debt services (principal only) shown on operating statements.
Schedule 10 Limitation of Indebtedness — This schedule applies only to general obligation debt. General
obligation debt is backed by the full faith and credit of the government. The debt service on non -voted debt is
paid out of general government revenues. The debt service on voted debt is paid from excess property tax levies
under RCW 84.52.056
Schedule 16 Expenditures
Federal Awards — Expenditures of federal awards that were received directly from a federal agency and
indirectly (pass- through) from a state agency or local government.
State / Local Awards — Expenditures from grants received directly or indirectly from state agencies (334),
grants from other local government (337), loans from the state and other local governments, and program
income.
Notes — Disclosure of the basis of accounting and any other significant accounting policies used in preparing
Schedule 16
Schedule 17 Public Works — A report regarding the limitation on public works projects performed by public
employees.
Schedule 19 Labor Relations Consultant — The 1993 Legislature has required the state Auditor's Office to
collect information regarding the role labor relations consultants play in local governments. This reporting
requirement is found in RCW 43.09.230, as amended by the 1993 Legislature.
Comprehensive Annual Financial Report (CAFR) —161
CITY OF );
SCHEDULE 9
LONG -TERM DEBT
For the Year Ended December 31, 2012 Page 1 of 5
Date of
Amount of Date of Final
ID No. Purpose Issue Issue Maturity
General Obligation Debt
Crim Justice /1-82 (Refunding) 251.15 594.21,595.11 $4,155,000 06/17/03 12/01/13
Fire (Refunded) 251.15 594.22 2,300,000 09/07/04 12/01/14
Cony Center Expansion (Refunding) 251.15 594.75.65 4,175,000 09/07/04 11/01/19
Cony Center Addition (Unrefunded) 251.11 594.75.65 6,735,000 06/10/02 06/01/12
Cony Center Addition (Refunding) 251.15 594.75.65 4,910,000 05/08/07 05/01/26
Sundome Expansion 251.11 559.20.77 1,430,528 06/17/03 12/01/23
Parks Capital Projects 251.11 594.76.65 755,000 12/05/05 12/01/15
River Rd Street Project 251.11 59511 1,765,000 05/08/07 05/01/17
Fire Station West Valley 251.11 59422 815,000 05/08/07 05/01/22
Downtown Revitalization Project 251.11 59511.61.63 1,490,000 05/08/07 05/01/22
Fire Ladder Truck 251.11 59422 760,000 08/28/08 12/01/21
Third Ave /Mead Walnut Street Project 251.11 59511 2,190,000 08/28/08 12/01/19
Capitol Theatre Expansion 251.11 59475 7,035,000 08/28/09 12/01/32
Total $38,515,528
Revenue Bonds
Water Refunding 1998 252.15 59434 1,883,951 06/05/08 11/01/18
Wastewater 252.11 59435 17,545,000 12/22/03 11/01/23
Wastewater Refunding 2003 B 252.15 59435 9,400,000 11/01/12 11/01/23
Wastewater 252.11 59435 5,440,000 06/05/08 11/01/27
Irrigation 252.11 59438 5,215,000 09/14/04 09/01/34
Total $39,483,951
Special Assessment Notes
#1056 263.63 535.10.65 218,481 12/17/05 12/17/15
#1057 263.63 535.10.65 346,238 05/01/06 05/01/16
#1058 263.63 535.10.65 200,014 05/01/06 05/01/16
#1060 263.63 535.10.65 398,216 06/01/10 06/01/20
#1061 263.63 535.10.65 497,728 04/01/10 04/01/20
Total $1,660,677
162 — Comprehensive Annual Financial Report (CAFR)
CITY OF );
SCHEDULE 9
LONG -TERM DEBT
For the Year Ended December 31, 2012 Page 2 of 5
Beginning BARS Rec BARS Code Red Ending Nominal
Outstanding Amount Code for Fund Amount for Fund Outstanding Interest
Balance Issued Receipt # Redeemed Redemption # Balance Rate
$985,000 0 391.10 -BND 283 $485,000 591.21 -710 283 $500,000 4.35 - 5.25 %,
825,000 0 391.10 -BND 284 265,000 591.22 -710 284 560,000 2.0 -3.5%
2,820,000 0 391.10 -BND 370 320,000 591.75 -710 287 2,500,000 2.0 -4.2%
235,000 0 391.10 -BND 370 235,000 591.75 -710 272 0 3.0 -5.0%
4,870,000 0 391.10 -BND 272 15,000 591.75 -710 272 4,855,000 4.0 -5.0%
943,267 0 391.10 -BND 392 101,614 59175 -710 281 841,653 2.34- 4.72%
340,000 0 391.10 -BND 331 80,000 59176 -710 281 260,000 4.0 -4.5%
1,150,000 0 391.10 -BND 142 170,000 59142 -710 281 980,000 4.0 -5.0%
645,000 0 391.10 -BND 332 45,000 591.22 -710 281 600,000 4.0 -5.0%
1,175,000 0 391.10 -BND 321 85,000 59142 -710 281 1,090,000 4.0 -4.5%
605,000 0 391.10 -BND 332 50,000 591.22 -710 281 555,000 3.25 -4.0%
1,635,000 0 391.10 -BND 142 180,000 59142 -710 281 1,455,000 3.25 -4.0%
6,495,000 0 391.10 -BND 322 190,000 59142 -710 272 6,305,000 3.0- 6.60%
$22,723,267 $0 $2,221,614 $20,501,653
1,385,000 0 39110 -BND 477 175,000 582.34 -720 486 1,210,000 4.00 -5.0%
1,835,000 0 39110 -BND 478 10,930,000 582.35 -720 493 1,060,000 2.0 -5.0%
10,155,000 9,400,000 39110 -BND 478 45,000 582.35 -720 493 9,355,000 2.0 -4.0%
4,770,000 0 39110 -BND 478 215,000 582.35 -720 488 4,555,000 4.00 -5.0%
4,465,000 0 39110 -BND 479 120,000 582.38 -720 491 4,345,000 2.0 -4.8%
$22,610,000 $9,400,000 $11,485,000 $20,525,000
45,000 0 39170 -770 345 18,500 59135 -770 289 26,500 8.75%
67,000 0 39170 -770 345 9,000 59135 -770 289 58,000 8.75%
57,000 0 39170 -770 345 10,000 59135 -770 289 47,000 8.75%
178,000 0 39170 -770 345 57,000 59135 -770 289 121,000 5.50%
381,000 0 39170 -770 345 58,500 59135 -770 289 322,500 5.50%
$728,000 $0 $153,000 $575,000
Comprehensive Annual Financial Report (CAFR) -163
CITY OF );
SCHEDULE 9
LONG -TERM DEBT
For the Year Ended December 31, 2012 Page 3 of 5
Date of
Amount of Date of Final
ID No. Purpose Issue Issue Maturity
Inter government Loans
(Public Works Trust And State Revolving Fund)
PW -5 -92- 280 -046 263.82 594.35.64 1,120,000 09/03/92 07/01/12
PW -5 -93- 280 -054 263.82 594.35.65 3,221,708 06/01/93 07/01/13
PW -5 -94- 784 -049 263.82 594.35.64 1,220,900 05/16/94 07/01/14
PW -5 -95- 791 -052 263.81 595.30.65 1,000,000 06/14/95 07/01/15
PW -5 -95- 791 -053 263.82 594.35.64 3,030,558 08/07/95 07/01/15
PW -5 -95- 791 -054 263.82 594.35.64 188,430 06/14/95 07/01/15
PW -01- 691 -071 263.82 594.35.65 1,466,250 06/01/01 07/01/21
PW -03 -027 263.82 594.34.65 2,694,000 09/01/03 07/01/23
PW -05- 691 -064 263.82 594.35.65 2,307,000 12/30/05 07/01/25
PW -07- 962 -019 263.82 594.35.65 2,300,000 04/30/07 07/07/27
SRF -04- 65104 -037 263.82 594.34.65 966,772 06/27/05 10/01/25
PC08- 951 -051 263.82 594.34.65 2,257,200 04/15/09 07/01/28
PC08- 951 -052 263.81 595.50.65 3,000,000 08/14/09 07/01/28
L1000030 -0 263.81 594.35.65 1,214,000 05/06/10 06/01/30
L1100008 263.82 594.35 -65 503,538 10/20/11 06/01/30
PC12- 951 -065 263.82 594.35.65 5,000,000 06/01/12 06/01/32
PC13- 961 -059 263.82 594.35.65 2,000,000 10/11/12 06/01/32
CERB Loan #C95 -107 263.81 594.50.65 425,448 08/21/95 07/01/16
Total $33,915,804
Due To Other Governmental Units
Yakima County 263.82 64,500 06/01/06 06/01/12
Yakima County 263.82 50,000 06/01/07 06/01/12
Yakima County 263.82 27,500 06/01/08 06/01/12
Yakima County 263.82 214,000 06/01/08 06/01/13
Yakima County 263.82 500,000 09/26/11 06/01/13
Total $856,000
Lease Purchase Agreements
Telephone System Upgrade 263.53 594.28.66 98,288 10/01/10 09/30/13
#1223521 - Printer /Copier 263.53 594.18.66 51,000 01/01/10 12/31/14
#0857 -1 -1 Two Fire Apparatus 263.96 594.22.66 600,000 03/15/11 12/01/20
Total $749,288
Grand Total $115,181,248
164 — Comprehensive Annual Financial Report (CAFR)
CITY OF );
SCHEDULE 9
LONG -TERM DEBT
For the Year Ended December 31, 2012 Page 4 of 5
Beginning BARS Rec BARS Code Red Ending Nominal
Outstanding Amount Code for Fund Amount for Fund Outstanding Interest
Balance Issued Receipt # Redeemed Redemption # Balance Rate
61,731 0 39180 -DCD 476 61,731 58235 -78P 473 0 1%
341,011 0 39180 -DCD 478 170,506 58235 -78P 473 170,505 1%
122,697 0 39180 -DCD 476 40,899 58235 -78P 473 81,798 1%
213,003 0 39180 -DCD 53,251 59142 -780 142 159,752 1%
653,498 0 39180 -DCD 478 163,375 58235 -78P 473 490,123 1%
46,741 0 39180 -DCD 476 11,685 58235 -78P 473 35,056 1%
776,250 0 39180 -DCD 476/477 77,625 58235 -78P 473 698,625 0.5%
1,616,700 0 39180 -DCD 477 134,725 58234 -78P 474 1,481,975 0.5%
1,739,441 0 39180 -DCD 476 124,246 58235 -78P 473 1,615,195 0.5%
1,942,222 0 39180 -DCD 478 121,389 58235 -78P 473 1,820,833 0.5%
649,444 0 39180 -DCD 477 47,073 58234 -78P 474 602,371 0.5%
1,946,670 112,860 39180 -DCD 477 121,149 58234 -78P 474 1,938,381 0.5%
2,624,561 0 39180 -DCD 392 154,386 59142 -780 342 2,470,175 0.5%
532,594 450,102 39180 -DCD 392 0 58231 -780 473 982,696 2.9%
36,856 444,166 38280 -SRF 478 0 58231 -780 473 481,022 2.9%
0 1,968,869 39180 -PWL 478 0 58231 -780 473 1,968,869 0.5%
0 635,824 39180 -PWL 476 0 58231 -780 473 635,824 0.5%
152,027 0 39180 -DCD 27,240 59119 -780 000 124,787 5.5%
$13,455,446 $3,611,821 $1,309,280 $15,757,987
10,400 0 39180 -COU 474 10,400 58234 -780 474 0 5.62%
11,655 0 39180 -COU 142 11,655 59142 -780 142 0 6.18%
5,956 0 39180 -COU 142 5,956 59142 -780 142 0 5.62%
90,144 0 39180 -COU 142 44,242 59142 -780 142 45,902 6.18%
500,000 0 39180 -COU 323 245,212 59142 -780 142 254,788 6.18%
$618,155 $0 $317,465 $300,690
58,821 0 39150 -CLF 151 33,087 59118 -750 000 25,734 4.17%
32,068 0 39150 -CLF 000 10,176 59118 -750 000 21,892 4.85%
523,123 0 39190 -COP 332 50,597 59122 -750 332 472,526 3.02%
$614,012 $0 $93,860 $520,152
$60,748,880 $13,011,821 $15,580,219 $58,180,482
Comprehensive Annual Financial Report (CAFR) -165
CITY OF ) ; : d2 / / / 1/
SCHEDULE 9
LONG -TERM DEBT
For the Year Ended December 31, 2012 Page 5 of 5
NOTE:
The Public Works Trust Loans are from the State of Washington's
Department of Community Development.
Terms of the loans authorize maximum sums as follows:
PW -5 -89- 962 -0056 $765,000
PW -5 -89- 962 -0057 174,879
PW -5 -89- 962 -0058 495,000
PW -5 -90- 280 -050 803,157
PW -5 -91- 280 -070 1,155,000
PW -5 -91- 280 -071 1,188,000
PW -5 -92- 280 -046 1,120,000
PW -5 -93- 280 -054 3,221,708
PW -5 -94- 784 -049 1,481,000
PW -5 -95- 791 -052 1,000,000
PW -5 -95- 791 -054 209,367
PW -5 -95- 791 -053 3,030,558
PW -00- 691 -062 1,180,000
PW -01- 691 -071 1,466,250
PW -03 -027 2,694,000
PW -05- 691 -064 2,307,000
PW -07- 962 -019 2,300,000
$24,590,919
166 — Comprehensive Annual Financial Report (CAFR)
CITY OF )id;///a
SCHEDULE 10
LIMITATIONS OF INDEBTEDNESS
For the Year Ended December 31, 2012 Page 1 of 1
Total Taxable Property Value - $5,494,497,093
Remaining
Debt
Capacity
2.50% ( $137,362,427 ) General Purposes Limit is Allocated Between.
Up to 1.5% Debt without a Vote (Councilmanic) $82,417,456
Less Outstanding Debt 32,387,562
Less: Contracts Payable 520,152
Less: Excess of Debt with a Vote 0
Add. Available Assets 10,866,725
Equals: Remaining Debt Capacity without a Vote $60,376,467
1% General Purposes Debt with a Vote $54,944,971
Less Outstanding Debt 560,000
Less: Contracts Payable 0
Add. Available Assets 199,922
Equals: Remaining Debt Capacity with a Vote $54,584,893
2.5% Utility purpose limit, voted 137,362,427
Less Outstanding Debt 0
Less: Contracts Payable 0
Add. Available Assets 0
Equals: Remaining Debt Capacity - Utility Purpose, Voted $137,362,427
2.5% Open Space, Park and Capital Facilities, Voted $137,362,427
Less Outstanding Debt 0
Less: Contracts Payable 0
Add. Available Assets 0
Equals: Remaining Debt Capacity - Open Space, Park and Capital Facilities, Voted $137,362,427
Comprehensive Annual Financial Report (CAFR) —167
CITY OF );
SCHEDULE 16
EXPENDITURES OF FEDERAL AWARDS
For the Year Ended December 31, 2012 Page 1 of 2
From Pass- From
Grantor / Pass - Through Grantor CFDA Through Direct
Program Title No Other I.D Number Awards Awards Note
U S. Department of Agriculture
Child & Adult Care Food Program 10.558 39141326 $8,739
U S. Department of Housing & Urban Development
Community Development Block Grant 14.218 B 11 -MC -53 -0008 $1,062,905 6
Community Development Block Grant 14.218 CDBG Program Income 105,983 3
Sub -Total CFDA 14.218 1,168,888
Home Investment Partnerships Program 14.239 M12 -MC53 -0203 235,487 -
Home Investment Partnerships Program 14.239 M11 -MC53 -0203 614,196 -
Home Investment Partnerships Program 14.239 Home Program Income 132,492 3
Sub -Total CFDA 14.239 982,175
Passed- through Washington State Dept of Commerce
CDBG Neighborhood Stabilization Program 14.228 08 -F6401 -027 16,857
Total Department of Housing and Urban Development 16,857 2,151,063
U S. Department of Justice
State Criminal Alien Assistant Program 16.606 2009 -AP -BX -0439 12,059 -
Public Safety Partnership & Community Policing Grants 16.710 2009- CKWX0186 17,191 -
Public Safety Partnership & Community Policing Grants 16.710 2010- CKWX0186 235,261 -
ARRA Public Safety Partnership & Community Policing 16.710 2009RKWX0902 576,700 7
Sub -Total CFDA 16.710 829,152
Edward Byrne Memorial Justice Assistance Grant 16.738 2009 -DJ -BX -0499 23,227 -
Edward Byrne Memorial Justice Assistance Grant 16.738 2010 -DJ -BX -0195 7,174 6
Edward Byrne Memorial Justice Assistance Grant 16.738 2011 -DJ -BX -2102 61,340 6
Edward Byrne Memorial Justice Assistance Grant 16.738 2012 -DJ -BX -0341 23,043 6
Sub -Total CFDA 16.738 114,784
ARRA Edward Byrne Memorial Justice Assistance Grant 16.804 ARRA 2009 -SB -B9 -1257 107,039 6/7
Total U.S. Department of Justice 0 1,063,034
U S. Department of Transportation
Federal Transit - Formula Grant 20.507 WA-90X508-00 1,890,226
Passed- through Washington State Dept of Transportation
Federal Transit - CMAQ Demo Sunday 20.507 WA-95-X048 42,385
Sub -Total CFDA 20.507 42,385 1,890,226
Job Access - Reverse Commute 20.516 GCA6232 90,749
Highway Planning & Construction - CFDA 20.205
Railroad Grade Separation 20.205 STPX -000S (062) 61,683 2
Fair Ave / Nob Hill 20.205 STPUS -4566 (007) 185 2
Yakima Valley Transportation 20.205 STPE -1485 (019) 345
Pow erhouse/WOD Trail 20.205 STPE -1485 (023) 26,544
64th Ave Roadway Widening 20.205 STPUS -4591 (002) 46,214 2
N 1st St. Revitalization 20.205 STPUS -4579 (011) 1,829 2
Sub -Total CFDA 20.205 136,800 0
Total U.S. Department of Transportation 269,934 1,890,226
168 — Comprehensive Annual Financial Report (CAFR)
CITY OF )!(Mill!
SCHEDULE 16
EXPENDITURES OF FEDERAL AWARDS
For the Year Ended December 31, 2012 Page 2 of 2
From Pass- From
Grantor /Pass - Through Grantor CFDA Through Direct
Program Title No Otherl.D Number Awards Awards Note
Environmental Protection Agency
Passed - through Washington State Dept of Transportation
Water Pollution Control Revolving Fund 66.458 LI200019 32,595 4b
U S. Department of Energy
ARRA Energy Efficiency and Conservation Block Grant 81.128 ARRA- DE- SC0003043 37,348 7
U S. Department of Health and Human Services
Passed - through Yakima County
Special Programs for the Aging /Disease Prevention 93.043 0969- 54703 372
Special Programs for the Aging /Disease Prevention 93.043 0969 -54703 26,242
Sub -Total CFDA 93.043 26,614
Special Programs for the Aging /Grants for Sup Svcs 93.044 0969 -54703 12,756
Total U.S. Department Health Passed - through 39,370
Homeland Security
Passed - through Yakima County - Emergency Management
Homeland Security Grant 97.067 YVOEM 11 -001 66,200
$433,695 $5,141,671
Total Federal Assistance Direct & Pass - Through Awards $5,575,366
Comprehensive Annual Financial Report (CAFR) —169
CITY OF ) X i117a
SCHEDULE 16
EXPENDITURES OF STATE AND LOCAL AWARDS
For the Year Ended December 31, 2012 Page 1 of 1
Grantor/ BARS Other Current
Pass - Through Grantor Account Identification Year
Program Title No Information Expenditures
State Assistance
Washington State Department of Transportation (WSDOT)
Vanpool Vans 334.03 96,250
JARC Transit Grant 334.03 919
Transit Operating Grant 334.03 27,193
Subtotal 124,362
Washington State Recreation & Conservation Office
Washington Wildlife and Recreation Program 334.04 Project 2212 51,331
Washington State Transportation Improvement Board
Nob Hill 49th - 64th 334.03 Project 2272 1,299,250
WA Avenue, 16th Intersection 334.03 Project 2232 92,956
Subtotal 1,392,206
Washington State Department of Ecology
Shoreline Master Program Grant 334.03 11,386
Municipal Stormwater Capacity Grant 334.03 Project 2304 85,110
UIC Retrofit Project Grant 334.03 Project 2313 33,467
Tire Cleanup 334.03 Project R420 8,835
Subtotal 138,798
Washington State Department of Social and Health Services
State Respite 334.04 9,177
Pre - hospital (Emergency Mgmt) 334.04 1,534
Subtotal 10,711
Washington State Office of Public Defense
Indigent Defense Cities Grant 334.01 150,000
Washington Traffic Safety Commission
Police Overtime and Equipment 337.00 46,661
Total State Assistance $1,914,069
Local Assistance
Yakima County Interlocal Grant
County Bond Funding 337.00 $46,151
Yakama Indian Nation
Parks 337.07 4,000
Total Local Assistance $50,151
Total State and Local Assistance $1,964,220
170 — Comprehensive Annual Financial Report (CAFR)
CITY OF iaitil!a
SCHEDULE 16
NOTES TO THE SCHEDULE OF EXPENDITURES
For the Year Ended December 31, 2012 Page 1 of 1
Note 1 - Basis of Accounting
The Schedule of Expenditures of Federal Award is prepared on the same basis of accounting as the City of Yakima financial statements.
The City of Yakima uses modified accrual system for all governmental funds: full accrual system for proprietary, nonexpendable and
pension trust funds.
Note 2 - Program Costs
The amounts shown as current year expenditures represent only the federal portion of program costs. Actual program costs, including the
City of Yakima's portion may be more than shown.
Note 3 - Program Income
The City of Yakima has a loan program for low income housing. Under this federal grant, repayments to the City of Yakima are considered
program revenues (income) and loans of such funds to eligible recipients are considered expenditures.
Note 4 - Federal Loans
a) In 2003, the City of Yakima was authorized to administer a Section 108 Loan program. There were no new loans in 2012. Since the City
is only contingently liable, this amount is not included in the Schedule of Long -Term Debt. See Note 8 - Contingencies in the Basic
Financial Statements section for details of the entire program.
b) The City of Yakima was approved by the EPA and the State Department of Ecology to receive a loan totaling $3,054,264 at 2.6% interest
and a forgivable principal (grant) amount of $697,150 to fund capital improvement projects at the City's Wastewater Treatment Plant.
The amount listed for this loan includes the proceeds used during the year
Note 5 - Noncash Awards
Not Applicable
Note 6 - Amount Paid to Sub recipients
The City of Yakima paid the following amounts to subrecipients:
CDBG - 14.218 $75,000
ARRA - 16.804 $17,001
JAG - 16.738 $25,385
Note 7 - American Recovery and Reinvestment Act (ARRA)
Expenditures for this program were funded by ARRA.
Comprehensive Annual Financial Report (CAFR) —171
CITY OF ) .;h7a
SCHEDULE 17
LIMITATION ON PUBLIC WORKS PROJECTS PERFORMED BY PUBLIC
EMPLOYEES
For the Year Ended December 31, 2012 Page 1 of 1
1. Total current public works construction budget as amended (annual or biennial as applicable) $44,354,138
2. Total allowable public works (10 percent of line 1) 4,435,414
3. Less. Amount (it any) in excess of permitted amount from prior year 0
4. Total allowable public works (line 2 minus line 3) 4,435,414
5 Total public works projects performed by public employees during the current year (including
work performed by a county) 137,621
6. It this is the second year of a biennial budget, total public works performed by public employees
during the prior year 0
7 Restricted (over) under allowable (line 4 minus line 5 minus line 6) $4,297,793
NOTE It the restricted amount is over allowable, this amount must be carried forward to next year's report.
172 — Comprehensive Annual Financial Report (CAFR)
CITY OF )!(/.;h7a
SCHEDULE 19
LABOR RELATIONS CONSULTANTS
For the Year Ended December 31, 2012 Page 1 of 1
Name Ot Firm: Name of Consultant•
Menke Jackson Beyer Elofson Ehlis & Harper, LLP A. Menke/K. Harper
Business Address.
807 North 39th Avenue
Yakima, Washington 98901
Amount Paid To Consultant During Fiscal Year •
$6,624.00
Terms And Conditions, As Applicable, Including:
Rates (E.G., Hourly, ETC ):
$80 to $150 an hour plus reimbursable cost (long distance, postage and copy charges)
Maximun Compensation Allowed.
None
Aeration of Services.
On Going
Services Provided.
Labor negotiations and arbitration for Police, Fire and AFSCME
Comprehensive Annual Financial Report (CAFR) —173
CITY OF iaitil!a
SCHEDULE 21
LOCAL GOVERNMENT RISK ASSUMPTION
For the Year Ended December 31, 2012 Page 1 of 1
Program Manager Phone:
Cindy Epperson (509)576 -6771
Business Address: Email.
129 N 2nd Street cindy.eppersonC'yakimawa.gov
Yakima, Washington 98901
Which class of risk does the entity self- insure? Check all that apply
Liability
Property
' Health & Welfare (medical, vision, dental, prescription)
Third Party Administrator
EBMS - 2075 Overland Ave /P.O Box 21367, Billings MT 59104
® Unemployment Compensation (except when using the state program regardless if using tax or reimbursement method)
Third Party Administrator
TALX Corporation / Equifax Workforce Solutions, 11432 Lackland Road, St. Louis MO 63146
Workers Compensation (except when using the state program)
Third Party Administrator
Intermountain Claims - P O. Box 4367, Boise ID 83711, (208) 323 -7571
n Other - please describe:
Yes No
Does the local government self- insure as an individual program?
If yes, does the local government allow another separate legal entity into its self - insurance program(s)?
(for example, employees of a different organization participate in a health and welfare program of a city)
If yes, list the other member(s): Yakima Air Terminal (Joint Venture)
Ai I Does the local government administer its own claims?
I I Does the local government contract with a third party administrator for claims administration?
I I Did the local government receive a claims audit in the last three years, regardless of who administered the claims?
Were the program's revenues sufficient to cover the program's expenses?
Did the program use an actuary to determine its liabilities?
Current Period
# of Claims # of Claims Total $'s
Risk Type Received Paid Paid
Healthcare 26,180 26,180 $8,776,426
Unemployment 105 51 $112,003
Workers Compensation 67 134 $412,243
174 — Comprehensive Annual Financial Report (CAFR)
CITY OF iL
NET POSITION BY COMPONENT
LAST TEN FISCAL YEARS
(Amounts Expressed in Thousands - Accrual Basis of Accounting) Page 1 of 1
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Governmental Activities
Invested in Capital Assets, Net of Related Debt $50,464 $60,441 $63,513 $72,842 $121,925 $130,196 $128,071 $137,521 $147,349 $149,222
Restricted 4,914 4,831 4,792 4,238 10,991 9,804 9,286 9,350 18,624 18,548
Unrestricted 11,195 8,060 8,951 9,668 14,327 16,073 14,928 10,545 (921) (2,528)
Total Governmental Activities Net Position $66,573 $73,332 $77,256 $86,748 $147,243 $156,073 $152,285 $157,416 $165,052 $165,242
Business -Type Activities
Invested in Capital Assets, Net of Related Debt $80,072 $84,227 $86,609 $89,124 $90,617 $86,560 $98,161 $101,913 $105,681 $109,844
Restricted 2,610 2,665 2,701 2,705 2,722 2,362 2,366 2,370 2,372 1,757
Unrestricted 9,692 11,250 14,613 17,156 20,771 22,963 15,449 19,461 17,690 19,984
Total Business -Type Activities Net Position $92,374 $98,142 $103,923 $108,985 $114,110 $111,885 $115,976 $123,744 $125,743 $131,585
Primary Government
0 Invested in Capital Assets, Net of Related Debt $130,536 $144,668 $150,122 $161,966 $212,542 $216,756 $226,232 $239,434 $253,030 $259,066
Restricted 7,524 7,496 7,493 6,943 13,713 12,166 11,652 11,720 20,996 20,305
co Unrestricted 20,887 19,310 23,564 26,824 35,098 39,036 30,377 30,006 16,769 17,456
4-
Total Primary Government Net Position $158,947 $171,474 $181,179 $195,733 $261,353 $267,958 $268,261 $281,160 $290,795 $296,827
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$300,000
$250,000 A •
p
$200,000
$150,000
$100,000
p $50,000 -MT .
$0 I I I I I I I I I I
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-0 2003 2004 2005 2006 2007 2008 2009 2010 2011
0
() ■ Governmental Activities =Business-Type Activities S Primary Government
NOTES 2007 was the first year of accounting for the universe of infrastructure
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0
CHANGE IN NET POSITION
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LAST TEN FISCAL YEARS
cn (Amounts Expressed in Thousands - Accrual Basis of Accounting) Page 1 of 3
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2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Expenses
Governmental Activities
General Government $6,774 $7,147 $7,381 $7,336 $7,867 $8,145 $8,656 $8,512 $8,814 $8,668
r. Security of Persons and Property 26,468 28, 391 30, 222 32, 059 33, 706 36 ,959 40,009 40,088 40,614 42,996
Physical Environment 1,225 1,176 1,232 1,339 872 1,355 1,190 828 670 658
co Transportation 5,811 5,584 5,962 6,821 11,516 11,213 11,109 11,604 10,693 11,530
O Economic Environment 3, 143 3, 422 3, 747 3 ,937 4,007 4,146 4,821 5,670 4,840 3,950
Mental and Physical Health 15 17 43 17 20 19 86 87 22 24
Cultural & Recreational Environment 6,891 7,066 7,601 7,819 6,807 7,156 7,021 7,471 7,859 7,522
Interest on Long Term Debt 1,063 850 809 815 871 863 1,004 1,217 1,160 1,122
Total Governmental Activities Expenses 51 ,390 53,653 56,997 60,143 65,666 69,856 73,896 75,477 74,672 76,470
Business -Type Activities
Transit 5,282 5,526 6,282 6,769 7,317 8,323 7,929 8,365 8,564 9,085
Retuse 2,861 2, 751 3, 154 3, 176 3 ,521 3,971 4,218 4,362 4,472 4,679
Wastewater 10,172 11,565 11,173 11,545 11,794 12,167 12,297 12,813 13,972 13,634
Water 4,406 4,586 4, 921 5, 044 5 ,395 5,520 5,748 5,654 5,546 5,834
Irrigation 1,222 1,220 1,645 1,572 1,568 1,695 1,733 1,811 1,884 1,891
Stormwater 0 0 0 0 0 583 1,028 1,240 1,317 1,318
Total Business -Type Activities Expenses 23,943 25,648 27,175 28,106 29, 595 32 ,259 32,953 34,245 35,755 36,441
Total Expenses $75,333 $79,301 $84,172 $88,249 $95,261 $102,115 $106,849 $109,722 $110,427 $112,911
CITY OF i lt/J/I1it
CHANGE IN NET POSITION
LAST TEN FISCAL YEARS
(Amounts Expressed in Thousands - Accrual Basis of Accounting) Page 2 of 3
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Program Revenues
Governmental Activities
Charges for Services
General Government $47 $196 $156 $170 $145 $19 $12 $4 ($2) $9
Security of Persons and Property 1,995 1,746 1,561 1,389 1,625 1,823 2,539 2,183 2,088 2,385
Physical Environment 422 605 875 1,101 901 980 649 1,544 768 735
Transportation 98 130 84 64 261 161 59 259 225 232
Economic Environment 1,141 1,146 1,059 1,259 2,072 1,664 1,673 1,719 2,258 1,231
Cultural & Recreational Environment 1,515 1,565 1,533 1,744 1,922 2,037 2,070 2,100 2,216 2,122
Operating Grants and Contributions 5,051 4,542 5,134 5,235 4,640 5,488 6,378 7,981 10,507 10,848
Capital Grants and Contributions 2,866 9,311 3,921 9,301 14,595 4,961 5,090 15,490 14,991 4,883
Total Government Activities 13,135 19,241 14,323 20,263 26,161 17,133 18,470 31,280 33,051 22,445
Business -Type Activities
O Charges for Services
Transit 427 422 450 484 578 1,234 931 935 1,015 1,047
f., Refuse 3,080 3,335 3,508 3,861 3,952 4,244 4,655 4,880 4,770 5,430
Wastewater 12,102 14,691 14,125 14,614 14,433 14,898 15,941 16,442 15,466 18,703
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;." Water 4,973 5,208 5,381 6,158 6,360 6,394 7,097 7,058 6,887 8,599
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Irrigation 1,792 2,479 2,435 2,449 2,486 2,563 2,646 2,711 2,718 2,901
Stormwater 0 0 0 0 0 1,065 1,707 1,976 2,170 2,183
p Operating Grants and Contributions 1,552 1,803 3,103 2,801 2,386 2,102 2,019 2,410 2,911 2,713
by Capital Grants and Contributions 4,103 2,053 2,387 1,912 2,789 3,345 1,659 4,993 1,646 2,118
p
• Total Business -Type Activities 28,029 29,991 31,389 32,279 32,984 35,845 36,655 41,405 37,583 43,694
• Total Program Revenues $41,164 $49,232 $45,712 $52,542 $59,145 $52,978 $55,125 $72,685 $70,634 $66,139
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• Net Expense /Revenue
Governmental Activities ($38,255) ($34,412) ($42,674) ($39,880) ($39,505) ($52,723
o ($52,723) ($55,426) ($44,197) ($41,621) ($54,025)
Business -Type Activities 4,086 4,343 4,214 4,173 3,389 3,586 3,702 7,160 1,828 7,253
n Total Net Expense ($34,169) ($30,069) ($38,460) ($35,707) ($36,116) ($49,137) ($51,724) ($37,037) ($39,793) ($46,772)
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CHANGE IN NET POSITION
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LAST TEN FISCAL YEARS
cn (Amounts Expressed in Thousands - Accrual Basis of Accounting) Page 3 of 3
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2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
General Rev & Other Changes in Net Position
Governmental Activities
p Taxes
n . Property Taxes $11,853 $12,199 $12,435 $13,265 $13,071 $13,782 $14,261 $14,535 $15,126 $15,565
Sales and Use Taxes 13,328 14,055 15,690 17,113 18,393 18,990 17,810 17,920 18,346 19,599
co Franchise and Utility Taxes 7,582 7,763 8,302 9,045 9,025 9,584 10,293 9,959 9,675 9,798
o Excise Tax 1,646 2,612 3,213 3,081 3,469 2,839 2,412 2,281 2,234 2,656
Penalties and Interest 12 2 1 11 10 3 5 1 1 0
Grants and Contributions not Restricted 175 0 0 0 0 0 0 0 0 0
State Entitlements 2,675 2,774 2,953 3,497 3,790 3,614 3,739 3,589 0 0
Unrestricted Investment Interest 426 415 735 695 913 863 556 403 272 309
Miscellaneous (260) 41 57 137 (38) 147 101 (64) 33 42
Gain on Sale of Capital Assets (7) (1,012) 257 (695) (553) 135 85 (922) (148) 73
Intergovernmental Agreements (1,406) 0 0 (39) 0 0 0 0 0 0
Transfers 2,637 2,797 2,950 3,084 2,624 3,664 4,188 3,927 3,718 6,172
Debt Issue Cost 0 0 4 0 0 (3) (31) 0 0 0
Acctg Loss on Gen Oblig of Debt Ref (295) (474) 0 140 0 0 0 0 0 0
Total Government Activities 38,366 41,172 46,597 49,334 50,704 53,615 53,419 51,629 49,257 54,214
Business -Type Activities
Sales and Use Taxes 3,895 4,138 4,234 4,511 4,789 4,828 4,490 4,485 4,449 4,762
Unrestricted Investment Interest 124 269 560 656 380 198 100 21 9 11
Gain on Sale of Capital Assets (139) 8 (56) 100 (227) 1,286 (1) (6) (529) 7
Transfers (3,122) (2,990) (3,171) (3,315) (3,207) (4,188) (4,201) (3,892) (3,718) (6,191)
Extraordinary Item (8,332) 0 0 0 0 0 0 0 0 0
Total Business -Type Activities (7,574) 1,425 1,567 1,952 1,735 2,124 388 608 211 (1,411)
Total Primary Government $30,792 $42,597 $48,164 $51,286 $52,439 $55,739 $53,807 $52,237 $49,468 $52,803
Change in Net Position
Governmental Activities $111 $6,760 $3,923 $9,454 $11,199 $892 ($2,007) $7,432 $7,636 $189
Business - Type Activities (3,488) 5,768 5,781 6,125 5,124 5,710 4,090 7,768 2,039 5,842
Total Change in Net Position ($3,377) $12,528 $9,704 $15,579 $16,323 $6,602 $2,083 $15,200 $9,675 $6,031
CITY OF iL
GOVERNMENTAL ACTIVITIES TAX REVENUES BY SOURCE
LAST TEN FISCAL YEARS
(Amounts Expressed in Thousands - Accrual Basis of Accounting) Page 1 of 1
Fiscal Property Sales Franchise Utility Excise
Year Tax Tax Tax Tax Tax Total
2003 11,853 13,328 417 7,165 1,646 34,409
2004 12,199 14,055 421 7,342 2,612 36,629
2005 12,435 15,690 427 7,875 3,213 39,640
2006 13,265 17,113 343 8,702 3,081 42,504
2007 13,071 18,393 42 8,984 3,470 43,960
2008 13,782 18,990 40 9,544 2,839 45,195
2009 14,261 17,810 53 10,240 2,412 44,776
2010 14,535 17,920 45 9,915 2,281 44,696
2011 15,126 18,346 45 9,630 2,235 45,382
2012 15,565 19,599 56 9,742 2,656 47,618
50,000
40,000 .
rO 30,000
20,000 - -
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roo 10,000
0 . . . . . . . . .
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
• Property • Sales O Franchise • Utility • Excise
Tax Tax Tax Tax Tax
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CITY OF i ltkir/c!t
FUND BALANCES OF GOVERNMENTAL FUNDS
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LAST TEN FISCAL YEARS
cn (Amounts Expressed in Thousands - Accrual Basis of Accounting) Page 1 of 2
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2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
General Fund
▪ Reserved $481 $384 $278 $377 $458 $464 $356 $0 $0 $0
Nonspendable 0 0 0 0 0 0 0 67 44 42
r. Unreserved 8,476 8,467 8,686 9,145 10,034 10,583 8,486 - - -
Unassigned 0 0 0 0 0 0 0 8,643 8,812 9,738
c • Total General Fund 8,957 8,851 8,964 9,522 10,492 11,047 8,842 8,710 8,856 9,780
O
Community Development
• Reserved 631 1,120 1,016 1,045 2,257 290 377 - - -
▪ Restricted 0 0 0 0 0 0 0 284 270 193
Unreserved (157) (813) (661) (779) (1,861) 0 0 - - -
Total Community Development Fund 474 307 355 266 396 290 377 284 270 193
Parks & Recreation
Reserved 24 8 1 0 0 0 0 - - -
Committed 0 0 0 0 0 0 0 3,403 3,309 0
Unreserved 459 464 478 0 0 0 0 - - -
Total Parks & Recreation Lund 483 472 479 0 0 0 0 3,403 3 ,309 0
Streets & Trattic Engineering
Reserved 340 346 108 0 0 0 0 - - -
Unreserved 1,047 989 1,233 0 0 0 0 - - -
Total Streets & Trattic Engineering Fund 1,387 1,335 1,341 0 0 0 0 0 0 0
CITY OF Vdir/c!t
FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(Amounts Expressed in Thousands - Accrual Basis of Accounting) Page 2 of 2
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
All Other Governmental Funds
Reserved 3,139 2,973 3 ,389 2,817 2,909 1,685 2,943 - - -
Unreserved Reported in.
Special Revenue Funds 4 ,258 3,470 3,874 4,937 5,962 7,096 6,591 - - -
Nonspendable - - - - - - - - - 81
Restricted - - - - - - - 4,385 4,676 3,731
Committed - - - - - - - 1,137 924 2,025
Debt Service Funds
Restricted - - - - - - - 544 547 531
Committed - - - - - - - 31 47 50
Assigned - - - - - - - 80 86 75
Capital Project Funds 3,382 2,478 3,288 3,981 6,312 6,039 8,672 - - -
Restricted - - - - - - - 2,475 1,546 4,339
Committed - - - - - - - 0 1,114 1,007
Assigned - - - - - - - 911 743 900
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Permanent Fund
Nonspendable - - - - - - - 592 604 613
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;'. Total all Other Governmental Funds 10,779 8,921 10,551 11,735 15,183 14,820 18,206 10,155 10,287 13,352
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Governmental Funds
p
Reserved 4 ,615 4,831 4,792 4,239 5,624 2,439 3,676
h j Nonspendable - - - - - - - 659 648 736
p Restricted - - - - - - - 6,706 5,672 8,794
Committed - - - - - - - 1,168 2,085 3,082
p Assigned - - - - - - - 991 829 975
Unassigned - - - - - - - 8,643 8,812 9,738
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Unreserved 17,465 15,055 16,898 17,284 20,447 23,718 23,749 - - -
, -.1. Grand Total Governmental Funds $22,080 $19,886 $21,690 $21,523 $26,071 $26,157 $27,425 $18,167 $18,046 $23,325
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Fund Balance categories were changed trom Reserved and Unreserved to Nonspendable, Restricted, Committed, Assigned and Unassigned starting in 2011.
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CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
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LAST TEN FISCAL YEARS
cn (Amounts Expressed in Thousands - Modified Accrual Basis of Accounting) Page 1 of 2
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2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Revenues
Taxes and Special Assessments $36,977 $39,490 $42,557 $45,601 $47,061 $48,427 $48,256 $48,273 $48,744 $53,685
p Licenses and Permits 470 530 691 741 982 993 712 768 842 892
r. Intergovernmental Revenues 10,260 12,797 11,839 17,346 16,756 11,994 14,984 23,795 24,267 13,023
Charges for Services 5,291 5,846 5,596 5,543 6,996 6,536 6,496 7,225 7,935 6,300
co Fines and Forfeits 1,397 1,364 1,190 1,309 1,420 1,583 1,632 1,693 1,600 1,542
o Interest 695 553 870 1,168 1,696 1,407 753 531 380 508
Other Revenues 854 1,201 1,240 1,852 1,647 1,681 1,834 2,156 2,561 3
Total Revenues 55,944 61,781 63,983 73,560 76,558 72,621 74,667 84,441 86,329 79,500
`- Expenditures
General Government 9,054 9,905 10,090 10,452 10,757 11,367 11,626 11,594 11,886 11,558
Security of Persons and Property 25,440 26,959 28,684 30, 929 32, 691 34 ,815 37,907 37,742 37,767 40,725
Physical Environment 1,583 1,707 1,699 1,704 1,675 1,680 1,653 1,496 1,224 1,164
Transportation 4,310 4,204 4, 601 5, 129 5 ,129 5,777 5,395 5,713 5,455 5,406
Economic Environment 3, 117 3, 380 3, 681 3, 976 3 ,869 4,144 4,778 5,658 4,854 3,890
Mental & Physical Health 15 17 43 18 20 19 86 87 22 24
Cultural & Recreational Environment 6,331 6,452 6,900 6,951 5,712 6,217 6,062 6,580 6,497 6,390
Capital Outlay 10,004 9,488 5,333 12,153 12,754 8,857 10,642 19,312 17,144 6,743
Eebt Service
Principal Retirement 1,906 1,932 2,130 2,351 2,890 2,552 2,633 2,916 2,753 3,010
Interest 1,063 850 813 822 832 861 979 1,228 1,165 1,131
Total Expenditures 62,823 64,894 63,974 74,485 76,329 76,289 81,761 92,326 88,767 80,041
Excess (Deficiencies) of Revenues
Over (Under) Expenditures ($6,879) ($3,113) $9 ($925) $229 ($3,668) ($7,094) ($7,885) ($2,438) ($541)
CITY OF i lt/ ir/c!t
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(Amounts Expressed in Thousands — Modified Accrual Basis of Accounting) Page 2 of 2
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Other Financing Sources (Uses)
Proceeds from Capital Lease Financing $492 $473 $0 $0 $38 $0 $0 $149 $577 $0
Proceeds from L.T Debt - G.O. Bonds 1,511 7 760 0 4,686 2,946 7,004 0 0 0
Proceeds from Intergovernmental Loans 75 0 148 50 0 242 600 1,690 1,592 450
Other Note Proceeds 0 0 371 546 0 0 0 864 0 600
Transfers In 3,779 3,893 3,878 5,049 5,196 5,774 6,139 5,299 4,986 6,220
Transfers (Out) (3,697) (3,954) (3,845) (5,050) (5,664) (5,338) (5,426) (4,949) (4,631) (6,115)
Intergovernmental Agreements (1,406) 0 0 (39) (81) (39) (39) (97) (97) (97)
Sale of Capital Assets 49 131 317 109 26 13 10 0 15 6
Comp. for Loss of Gen. Capital Assets 52 54 162 90 129 142 82 47 176 94
Total Other Financing Sources (Uses) 855 604 1,791 755 4,330 3,740 8,370 3,003 2,618 1,158
Net Change in Fund Balances ($6,024) ($2,509) $1,800 ($170) $4,559 $72 $1,276 ($4,882) $180 $617
0
j Debt Service as a Percentage of
fO Noncapital Expenditures 5.6% 5.0% 5.0% 5.1% 5.9% 5.1% 5.1% 5.7% 5.5% 5.7%
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CITY OF Tit '://lit
GOVERNMENTAL ACTIVITIES TAX REVENUE BY SOURCE
LAST TEN FISCAL YEARS
(Amounts Expressed in Thousands - Modified Accrual Basis of Accounting) Page 1 of 1
6,
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Source
Property Tax $11,853 $12,199 $12,435 $13,265 $13,071 $13,782 $14,261 $14,535 $15,126 $15,565
Sales Tax 13,328 14,055 15,690 17,113 18,393 18,990 17,810 17,920 18,346 19,599
r, Franchise Tax 417 421 427 343 42 40 52 45 45 56
Utility Tax 9,720 10,200 10,792 11,787 12,076 12,772 13,716 13,492 12,992 15,808
co Excise Tax 1,646 2,612 3,213 3,092 3,479 2,843 2,412 2,281 2,235 2,656
O Total $36,964 $39,487 $42,557 $45,600 $47,061 $48,427 $48,251 $48,273 $48,744 $53,684
$60,000
- -
$50,000 -
$40,000
$30,000 - - - -
$20,000 - - - - -
$10,000 - -
$0 . - - . i
•
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
13 Excise Tax • Utility Tax • Franchise Tax 0 Sales Tax 0 Property Tax
CITY OF /CfL
ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY
LAST TEN FISCAL YEARS Page 1 of 1
Real Personal Total
Property Property Taxable Total
Fiscal Assessed Assessed Assessed Direct
Year Count Value (1) Value (1) Value (1) Tax Rate (2)
2003 29,138 3,465,213 208,221 3,673,434 3.5213
2004 29,552 3,417,860 406,237 3,824,097 3.4718
2005 29,851 3,550,847 420,821 3,971,668 3.4395
2006 30,170 3,748,045 421,694 4,169,739 3.3813
2007 31,650 4,177,532 409,392 4,586,924 3.1165
2008 32,463 4,674,742 429,574 5,104,316 2.9549
2009 32,762 4,929,779 439,180 5,368,959 2.9392
2010 32,972 4,951,414 427,805 5,379,219 2.9907
2011 32,415 5,154,871 444,407 5,599,278 2.9715
2012 32,539 4,995,574 458,645 5,454,219 3.0559
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6,000,000 -
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5,500,000 A
5,000,000
4,500,000
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4,000,000
3,500,000
3,000,000
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2,500,000
h j 2,000,000 . . . . . . . . . i
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
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Source. Yakima County
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(1) Amounts expressed in thousands
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CITY OF Xi L
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PROPERTY TAX RATES - DIRECT AND OVERLAPPING GOVERNMENTS (1)
LAST TEN FISCAL YEARS (RATE /1,000) Page 1 of 1
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co Total
City of Yakima Yakima County - Yakima School District- State Direct &
Fiscal Debt Total Debt Total Total School Overlapping
I Year Operating Service City Operating Service County Bonds M &O School Levy Library (2) Rates
p 2003 3.5213 0.0957 3.6170 2.0537 0.0849 2.1386 1.9776 2.7785 4.7561 2.9595 0.0000 13.4712
�. 2004 3.4718 0.0841 3.5559 2.0305 0.0817 2.1122 1.9270 2.8150 4.7420 2.9261 0.0000 13.3362
2005 3.4395 0.0763 3.5158 2.0131 0.0772 2.0903 1.7966 2.9402 4.7368 2.7364 0.0000 13.0793
co 2006 3.3813 0.0728 3.4541 1.9536 0.0724 2.0260 1.7781 2.9338 4.7119 2.5026 0.0000 12.6946
0 2007 3.1165 0.0649 3.1814 1.9000 0.0686 1.9686 1.7940 2.9329 4.7269 2.2536 0.4836 12.6141
2008 2.9549 0.0583 3.0132 1.8036 0.0630 1.8666 1.6358 2.7405 4.3763 2.0274 0.4619 11.7454
2009 2.8886 0.0506 2.9392 1.7523 0.0524 1.8047 1.5720 2.7934 4.3654 1.9217 0.4483 11.4793
2010 2.9348 0.0559 2.9907 1.7994 0.0526 1.8520 1.5805 2.9006 4.4811 2.0918 0.4595 11.8751
2011 2.9185 0.0531 2.9716 1.7716 0.0489 1.8205 1.5335 2.8906 4.4241 2.2086 0.4529 11.8777
2012 3.0559 0.0545 3.1104 1.8511 0.0472 1.8983 1.6640 3.0667 4.7307 2.3983 0.4724 12.6101
15 0000
10 0000 1 I . 7
5 0000 _
7
0 0000
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
• Total City Millage • Total County Millage •Yakima School District Millage • Washington State School Millage • Library
Source. Yakima County Department of Assessments
(1) Overlapping rates are those of local and county governments that apply to property owners within the City of Yakima. Not all overlapping rates apply to all City of Yakima property
Yakima owners (e.g. the rates for special districts apply only to the proportion of the government's property owners whose property is located within the geographic
CITY OF i ltki//c!t
PRINCIPAL PROPERTY TAX PAYERS (1)
DECEMBER 31, 2012
(Amounts Expressed in Thousands) Page 1 of 1
2012 2003
Percentage Percentage
of Total of Total
Taxable Taxable Taxable Taxable
Assessed Assessed Assessed Assessed
Taxpayer Value Rank Value Value Rank Value
Yakima HMA Inc. $59,381 1 0.35% $65,396 1 0.62%
Washington Fruit & Produce Co. 39,018 2 0.23% 15,172 7 0.14%
Wal -Mart Stores, Inc 38,735 3 0.23%
Shields Bag & Printing 30,312 4 0.18% 34,569 2 0.33%
Quest Communications 24,627 5 0.15% 28,196 4 0.27%
Cascade Natural Gas Corp 22,886 6 0.13%
Paciticorp / Pacific Power & Light 22,806 7 0.13% 14,262 9 0.13%
Michelsen Packaging Co 21,844 8 0.13% 14,064 10 0.13%
O Safeway Stores Inc 21,560 9 0.13%
Wide Hollow Development LLC 21,270 10 0.13%
r Longview Fibre Company 25,794 5 0.24%
Leelynn Inc & Wiley Mt Inc 31,470 3 0.33%
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" Yakima Herald Republic 16,202 6 0.15%
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John I Haas Inc 14,280 8 0.13%
TOTALS $302,439 1.78% $259,405 2.47%
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CITY OF Xi L
PROPERTY TAX LEVIES AND COLLECTIONS
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LAST TEN FISCAL YEARS Page 1 of 1
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co Collected Within the Collected Total Collection
Fiscal Total Year of the Levy in to Date
Year Levy for Percentage Subsequent Percentage
Ended the Year Amount of Levy Years Amount of Levy
2003 13,280,578 12,848,761 96.7% 302,489 13,151,250 99.0%
n. 2004 13,592,285 13,167,897 96.9% 259,284 13,427,181 98.8%
2005 13,960,632 13,412,195 96.1% 399,708 13,811,903 98.9%
co 2006 14,399,087 14,047,918 97.6% 350,597 14,398,515 100.0%
O 2007 14,588,962 14,208,341 97.4% 327,102 14,535,443 99.6%
2008 15,376,850 14,970,413 97 4% 351,366 15,321,779 99 6%
2009 15,776,982 15,270,543 96 8% 402,894 15,673,437 99 3%
2010 16,113,566 15,630,296 97 0% 295,625 15,925,921 98 8%
2011 16,634,342 16,105,108 96 8% 223,562 16,105,108 96 8%
2012 16,960,323 16,493,387 97 2% n/a 16,493,387 97 2%
17,000,000 -
16,000,000 •
15,000,000 •
14,000,000 •
13,000,000
12,000,000 •
11,000,000
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Total Tax Levied U Total Tax Collected
CITY OF iL
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
(Amounts Expressed in Thousands - Except Per Capita Amounts) Page 1 of 1
- Governmental Activities - Business Type Activities
General Total Percentage
Obligation Capital Wastewater Water Irrigation Primary of Per
Year Bonds Leases Bonds Bonds Bonds Gov't Income Capita
2003 20,580 492 23,084 2,911 0 47,067 3.63% 594
2004 19,830 822 21,106 2,754 5,215 49,727 3.84% 626
2005 19,365 640 20,386 2,589 5,120 48,100 3.92% 590
2006 18,040 449 19,021 2,414 5,015 44,939 3.03% 542
2007 20,837 287 17,518 2,233 4,910 45,785 2.64% 547
2008 21,973 72 20,920 2,000 4,805 49,770 3.09% 590
2009 26,979 10 19,580 1,804 4,695 53,068 3.55% 623
2010 24,881 132 18,197 1,598 4,580 49,388 2.61% 542
2011 22,723 614 16,760 1,385 4,465 45,947 2.52% 501
2012 20,502 520 14,970 1,210 4,345 41,547 n/a 452
-,:t $60,000
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c. $40,000
c $30,000
$20,000
$10,000
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. 0 General Obligation Bonds 0 Capital Leases • Wastewater Bonds • Water Bonds 0 Irrigation Bonds
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ti. Note. Details regarding the city's outstanding debt can be found in the notes of the financial statements.
n (1) See the Schedule of Demographic and Economic Statistics in this section for personal income and population data.
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CITY OF Xi L
RATIOS OF GENERAL BONDED DEBT OUTSTANDING
LAST TEN FISCAL YEARS
cn (Amounts Expressed in Thousands - Except Per Capita Amounts) Page 1 of 1
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Less: Percentage
Amount of Estimated
Available Actual
p General in Debt Taxable
c. Obligation Service Value
Year Bonds' Fund' Property p
Total of Pro a Per Capita
co 2003 20,580 648 19,932 0 52% 252
O 2004 19,830 739 19,091 0 48% 240
2005 19,365 724 18,641 0 45% 229
2006 18,040 751 17,289 0 38% 209
2007 20,838 781 20,057 0 39% 240
2008 21,973 688 21,285 0 40% 252
2009 26,979 537 26,442 0 49% 312
2010 24,881 548 24,333 0 43% 267
2011 22,723 553 22,170 0 41% 242
2012 20,502 692 19,810 0 36% 215
$27,500
$25,000
$22,500
$20,000
$17,500
$15,000
$12,500
$10,000 .
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
(1) Excludes Local Improvement Districts' bonded debt and their respective funds in the Debt Service Funds
CITY OF iL
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
AS OF DECEMBER 31, 2012
(Amounts Expressed In Thousands) Page 1 of 1
Estimated Estimated Share
Debt Percentage of Overlapping $20,502 $13,903
Governmental Unit Outstanding Applicable (1) Debt(1)
Debt Repaid with Property Taxes
Yakima County $37,560 37 0% $13,903
Yakima School District 107,915 94 7% 102,154
West Valley School District 48,797 61 0% 29,760
Subtotal, Overlapping in g Debt $194,272 $145,817 $29,760
City of Yakima Direct Debt $20,502
Total Direct and Overlapping Debt $166,319
$102,154
• Yakima County • Yakima School District
• West Valley School District • City of Yakima Direct Debt
NOTE Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the city This schedule estimates the portion of the outstanding debt of
those overlapping governments that is borne by the residents and businesses of the City of Yakima This process recognizes that, when considering the government's ability to
issue and repay long -term debt, the entire debt burden borne by the residents and businesses should be taken into account However, this does not imply that every taxpayer
h j is a resident, and therefore responsible for repaying the debt, of each overlapping government Naches School Districts are excluded in the overlapping debt chart due to
estimate debt overlap is less than 1% ( 31 %)
Sources. Assessed value data used to estimate applicable percentages provided by the County Board of Equalization and Assessment Debt outstanding data from Yakima county
(1) The percentage of overlapping debt applicable is estimated using taxable assessed property values Applicable percentages were estimated by determining the portion of the county's
taxable assessed value that is within the government's boundaries and dividing it by the county's total taxable assessed value
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CITY OF i " ir/c!t
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LEGAL DEBT MARGIN INFORMATION
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LAST TEN FISCAL YEARS
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2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Debt Limit $286,806 $297,876 $312,729 $344,019 $382,824 $402,672 $404,191 $419,945 $409,066 $412,087
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p Total Net Debt Applicable to Limit 19,869 20,111 20,493 18,433 20,119 21,220 28,469 27,127 25,768 22,401
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‘.4. Leal Debt Margin g g $266,937 $277,765 $292,236 $325,586 $362,705 $381,452 $375,722 $392,818 $383,298 $389,686
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O Total Net Debt Applicable to the Limit
` as a Percentage of Debt Limit 6.9% 0 6.6% 0 5.3% 5.3% 7.0% 6.5% 6.3% 0
6.8/0 6.6/0 54/0 5.3/0 5.3/0 7.0% 6.5/0 6.3/0 54/0
Legal Debt Margin Calculation for Fiscal Year 2012
Total Assessed Value $5,494,497
Debt Limit (7.5 %) of Total Assessed Value $412,087
Debt Applicable to Limit:
General Obligation Bonds & Other Debt 33,468
Less. Amount Set Aside for Repayment of G 11,067
Total Net Debt Applicable to Limit $22,401
Legal Debt Margin $389,686
NOTE. The State law provides debt cannot be incurred in excess of the following percentages of the value of the taxable property of the City The total indebtedness for general purpose
with or without a vote cannot exceed 2.5 %, for utility or open space, park, and capital facilities with a vote not to exceed 5 %.
CITY OF /CfLI/ZCL
PLEDGED REVENUE COVERAGE - WATER AND WASTEWATER
LAST TEN FISCAL YEARS
(Amounts Expressed In Thousands) Page 1 of 1
Water & Water & Wastewater Revenue Bonds
Wastewater Less Net
Operating Operating Available Debt Service
Year Revenues Expenses Revenue Principal Interest Coverage
2003 $17,455 $10,393 $7,062 $1,290 $468 4 02
2004 20,574 11,876 8,698 1,530 989 3 45
2005 20,259 11,644 8,615 1,497 1,011 3 44
2006 22,056 12,207 9,849 1,415 1,098 3 92
2007 21,425 12,404 9,021 1,486 1,022 3 60
2008 21,806 13,055 8,751 1,735 933 3 28
2009 23,038 12,143 10,895 1,535 880 4 51
2010 23,500 12,372 11,128 1,590 950 4 38
2011 22,333 13,000 9,333 1,650 893 3 67
2012 27,302 13,110 14,192 1,165 831 711
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fO $25,000
$20,000 � - 6 00
$15,000 4 00
$10,000 I
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$5,000 I ,N ,N •: 1: 1: 1: I . I . I. 11 200
$0 0 00
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2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
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CITY OF Xi L
PLEDGED REVENUE COVERAGE - IRRIGATION
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LAST TEN FISCAL YEARS
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Irrigation Revenue Bonds
Irrigation Less Net
Operating Operating Available Debt Service
Year Revenues Expenses Revenue Principal Interest Coverage
n 2003 0 0 0 0 0 N/A
2004 0 0 0 0 0 N/A
co 2005 2,591 1,304 1,287 95 219 410
O 2006 2,617 1,333 1,284 105 217 3 99
2007 2,592 1,350 1,242 105 215 3 88
2008 2,593 1,245 1,348 105 213 4 24
2009 2,646 1,268 1,378 110 211 4 29
2010 2,711 1,328 1,383 115 208 4.28
2011 2,714 1,336 1,378 115 204 4.32
2012 2,894 1,337 1,557 120 197 4.91
$3,500 - - 6 00
$3,000 ' 1 5 00
$2,500
— 400
$2,000
$1,500 ' — 3 00
$1,000 - 2 00
$500 100
$0 • 1 1 1 1 1 1 1 1 1 0 00
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
∎Revenues =Expenses 1Coverage
NOTE Debt Service began in 2005 Operating expenses exclude depreciation, amortization and City taxes
CITY OF i lt/ ir/c!t
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN FISCAL YEARS Page 1 of 1
Personal Education
Income Level
(Expressed Per Capita in Years
Fiscal in Personal Median of Formal School Unempl.
Year Population Thousands) Income (1) Age (1) Schooling (1) Enrollment (2) Rate (3)
2003 79,220 $1,297,305 $17,245 33.5 12.4 14,662 9.6%
2004 79,480 1,294,066 16,716 32.0 12.5 14,463 8.5%
2005 81,470 1,225,715 16,568 31.8 12.4 14,564 7 4%
2006 82,867 1,483,631 18,563 32.4 12.7 14,436 6.9%
2007 83,731 1,734,125 21,874 31.9 12.5 14,660 6.3%
2008 84,300 1,611,918 20,143 34.4 12.7 14,804 7 4%
2009 84,850 1,493,832 17,703 33.7 12.4 15,327 8.8%
2010 91,067 1,891,040 21,626 32.7 12.6 15,247 10.6%
2011 91,630 1,824,335 20,919 33.2 12.6 15,474 9.9%
2012 91,930 Not Yet Available 15,627 10.1%
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(1) American Community Survey / U.S. Census Bureau web site
fO (2) Yakima Public Schools District No. 7 web site.
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CITY OF i ltkir/c!t
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PRINCIPAL EMPLOYERS - YAKIMA COUNTY
CURRENT YEAR AND NINE YEARS AGO Page 1 of 1
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c 2012 2003
Employer Employees Rank Percentage Employees Rank Percentage
Manufacturers
Walmart - Yakima /Sunnyside /Grandview 1,700 1 0.7% - - -
Washington Beef/ AB Foods 850 2 0.3% - - -
n . Tree Top, Inc. 540 3 0.3% 620 2 0.3%
Shields Bag & Printing Co. 476 4 0.2% 1,200 1 0.5%
co Washington Fruit & Produce 430 5 0.2% - - -
o Bor ton & Sons Fruit & Cold Storage - - - 524 3 0.2%
Snokist - - - 521 4 0.2%
Zirkle Fruit Company - - - 480 5 0.2%
Non - manufacturers
Yakima Valley Memorial Hospital 2,500 1 1.0% 1,100 4 0.5%
Yakima School District, No. 7 1,769 2 0.7% 1,451 1 0.6%
Washington State Social & Health Services 1,400 3 0.6% 1,400 2
Yakima Valley Farm Workers Clinic 1,181 4 0.5% 1,200 3 0.5%
Yakima County 1,169 5 0.5% - - -
Yakima Regional Medical Center (HMA) - - - 841 5 0 4%
Total 12,015 5.1% 9,337 3.5%
CITY OF i ltkir/c!t
FULL TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION
LAST TEN FISCAL YEARS Page 1 of 1
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
General Government 213.24 217.17 221.68 217 43 221.34 223.19 228.70 221.00 218.50 211.50
Public Safety_
Police
Otticers 118.00 119.00 125.00 126.00 137.00 137.00 137.00 138.00 134.00 139.00
Civilians 51.75 53.25 51.00 50.00 50.00 51.00 51.00 51.00 49.00 49.00
Fire
Firefighters and otticers 70.00 79.00 79.00 84.00 85.00 85.00 84.00 84.00 84.00 84.00
Civilians 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00
Highways & Streets
Tr attic Engineering 14.50 14.50 13.50 15.00 17.00 17.00 16.00 13.00 13.00 11.00
Street 23.50 22.50 24.50 26.50 26.50 26.50 27.00 26.00 24.00 24.00
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O Parks & Recreation 26.38 27 47 25 47 26.47 26.83 25.83 25.60 23.30 21.30 20.30
Transit 44.25 44.25 48.25 49.75 50.75 51.25 50.00 50.00 52.00 52.00
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Refuse 18.90 19.25 19.50 19.50 19.50 19.00 19.00 19.00 19.00 20.50
Water Operating 29.00 29.00 29.00 30.00 30.00 30.00 31.00 31.00 31.00 31.00
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" Wastewater Operating 66.76 64.76 65 45 66.45 65.05 65.09 69.50 69.50 69.50 69.00
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Irrigation Operating 8.72 8.72 8.92 8.92 9.17 9.17 8.00 8.00 8.00 8.00
Stormwater 0.00 0.00 0.00 0.00 0.00 6.96 0.00 0.00 0.00 0.00
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688.00 701.87 714.27 723.02 741.14 749.99 749.80 736.80 726.30 722.30
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CITY OF i ltki//c!t
OPERATING INDICATORS BY FUNCTION
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LAST TEN FISCAL YEARS Page 1 of 1
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2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Police
Physical Arrests 5,858 5,767 6, 121 5 ,579 5,433 5,185 4,889 4,745 5,439 7,915
Parking Violations 6,752 6,555 3 ,326 2,018 2,616 4,321 2,844 4,837 5,096 3,778
Trattic Violations 17,102 16,040 16,754 16,929 18,533 18,025 17,559 15,303 11,849 14,976
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‘.4. Fire
co Number of Calls Answered 8,018 8,052 8,912 8,954 9,200 9,288 9,737 10,011 8,439 9,439
o Inspections 3,947 2,876 2,631 2,302 3,101 2,948 2,268 2,909 2,646 30
Highways and Streets
Street Resurfacing (miles) 3 0 16 25 32 30 6 5 2 2
Refuse
Refuse Collected (tons /day) 71 77 81 87 88 91 100 102 105 103
Yard Waste Collected (tons /day) 15 16 14 16 15 17 19 19 19 19
Culture and Recreation
Community Center Admissions 54,446 72,395 99,421 107,478 99,035 93,325 96,483 118,867 122,870 125,040
Water Main Breaks
New Connections 140 132 134 148 133 105 68 79 61 74
Water Main Breaks 11 3 8 12 12 8 17 5 7 4
Average Daily Consumption 12,347 12,463 11,900 12,980 13,051 12,158 11,581 10,338 10,040 10,200
(thousands of gallons)
Wastewater
Average Daily Sewage Treatment 10,883 11,033 10,219 10,778 10,680 10,100 10,100 10,100 10,100 10,100
(thousands of gallons)
CITY OF i lt/ ir/c!t
CAPITAL ASSET STATISTICS BY FUNCTION
LAST TEN FISCAL YEARS Page 1 of 1
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Public Safety
Police Stations 1 2 2 2 2 2 2 2 2 1
Patrol Units (1) 62 62 61 61 61 61 61 62 61 53
Fire Stations 4 5 5 5 5 5 5 5 5 5
Refuse
Collection trucks 13 13 13 13 13 14 14 15 16 16
Highways and Streets (2)
Streets (miles) 399 401 414 419 419 419 420 325 380 380
Streetlights (3) 3,862 3,863 3,872 3,872 3,910 4,459 4,465 4,465 4,195 4,240
Traffic Signals 117 117 117 122 130 137 139 140 151 152
Culture and Recreation
Parks Acreage ) 344 331 265 265 287 284 386 386 352 352
o Parks 33 33 33 31 32 32 32 32 34 34
Swimming Pools l5 5 5 2 2 2 2 2 2 2 2
co Tennis Courts 32 32 26 26 26 26 26 24 24 24
Community Centers 2 2 3 3 3 3 3 3 3 3
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co Water
Water Mains 290 297 297 300 300 300 300 300 300 300
Fire Hydrants (City Owned) 2,137 2,757 2,169 2,174 2,204 2,204 2,239 2,249 2,254 2,279
p Maximum Daily Capacity (thousands of gallons) 36,520 36,520 36,520 36,520 36,520 36,520 36,520 36,520 36,520 36,520
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• Wastewater
n Sanitary Sewers (miles) 293 310 315 322 327 329 337 337 337 337
p Storm Sewers (miles) 104 104 104 104 105 105 105 105 105 105
Maximum Daily Capacity (thousands of gallons) 21.5 21.5 21.5 21.5 21.5 21.5 21.5 21.5 21.5 21.5
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,-.1. (1) Numbers began to fluctuate in 2012 due to streamlining and the movement of vehicles into and out of the fleet.
n (2) As a result of a GASB inventory the total numbers for Streets were recalculated in 2007 Beginning in 2010, Streets (miles) is based on the Street Inventory in the Pavement Management program.
(3) As a result of a physical inventory, the total for Highways and Streets was adjusted in 2011.
(4) As a result of a physical inventory the total acreage of Parks was recalculated in 2005.
(5) Three pools were closed in 2005.
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CITY OF 7etX1dllt
2012 GENERAL INFORMATION"
Statistics Animal License Fees — Rabies Vaccination Required
Date of Incorporation 1886 1 Year License — Altered $12.00
Form of Government Council- Manager Senior Citizens Lifetime — Altered $25 00
Type of Government Charter City Senior Citizens Lifetime — Not Altered $30 00
Location Central Washington 1 Year License — Not Altered $30 00
Land Area 28.7 square miles 1 Year License — Not Altered, Renewal $25 00
Rank in Size — State. 9 Disabled / Guide Dog .Free
Rank in Size — County 1 Replacement License $5.00
Population 91,930
Assessed Valuation $5,454,218,436 Fire Protection
City Employees (Full -time Equivalents) 722.30 Commissioned Fire Fighting Personnel 84
Election and Voter Registration Number of Non - Commissioned Personnel 3
Number of Precincts 49 Total Number of Fire Personnel 87
Number of Registered Voters 43,169
Police Protection
Property Tax Levy Commissioned Police Personnel 139
Regular Levy $16,667,323 Non - Commissioned Police Personnel 49
Special Levy $293,000 Total Number of Police Personnel 188
Total 2012 Property Tax Levy $16,960,323 Number of Calls for Service 144 / day
Sales Tax Rates Utility and Franchise Tax Rates
State .6.50% Electricity, Gas, Telephone (4% Capped @
Transit .0.30% $4,000 per customer per month) 6%
City of Yakima .0.85% Water, Wastewater 20%
Yakima County .0 15% Irrigation 6%
Criminal Justice (County) .0.40% Refuse 15%
Total Sales Tax Rate .8.20% TV Cable 6%
Parks and Recreation Utility Rates (2 months)
Total Acreage 352.3 Water — Base Charge $24.75
Number of Parks. 34 Each Unit $1.51
Number of Playgrounds 15 Wastewater — Base Charge $37 98
Major Facilities: Fisher Golf Course, two Each Unit $2.72
swimming pools, (one indoor, one outdoor), two Refuse (Carry -out Available for Additional Charge)
water playground areas, 16 ball fields (eight Automated Collection
lighted), two skate parks, 24 tennis courts, six 35 Gallon Cart $14.43
soccer fields, Senior Citizen Center, Southeast 96 Gallon Cart $33 01
Center, Tahoma Cemetery Yard Waste
96 Gallon Cart $24.86
Bus Passes (1 month) Irrigation (per square foot) $.0055
Adult $17.00
Student $12.00 Water / Wastewater Customer Base
Senior Citizen / Disabled $5.00 Water (Inside the City) 19,638
Water (Outside the City 133
Licenses and Permits Issued Total Water Customers 19,771
Business Licenses — sliding scale starts at $42.90 for Wastewater Residential (Inside the City) 23,039
1 - 2 employees, maximum of $1,285.20 for over Wastewater Residential (Outside the City) 47
eighty employees 6,571 Wastewater Commercial 2,335
Regulatory Licenses — Total Wastewater Customers 27,421
Varies from $11 00 to $1,000 629
* For informational purposes only — not intended for official or legal purposes.
200 — Comprehensive Annul Financial Report (CAFR)