HomeMy WebLinkAbout12/03/2013 08 2014 Budget AdoptionBUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No.
For Meeting of: 12/3/2013
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ITEM TITLE: A. Final Public Hearing on the proposed 2014 Revenue and
Expenditure Budget for the City of Yakima, and; B. Ordinance
adopting a budget for the City of Yakima for 2014.
SUBMITTED BY: Tony O'Rourke, City Manager
Cindy Epperson, Director of Finance & Budget
SUMMARY EXPLANATION:
City management recently submitted the 2014 Preliminary Budget Summary and the related
initiatives to City Council and the public. This budget represents staff's projections of revenues
and proposed expenditures for the coming year.
The Preliminary Budget was first presented ata Study Session on October 21, 2013. Since that
presentation, the proposal for the Street improvement project that will be funded in accordance
with the recent City Charter amendment has solidified to use the approved $2 million for annual
debt service on 10 year General Obligation Bonds that should generate enough proceeds to
pave about 92 lane miles. To properly include this in the budget, we added $16,500,000 of both
revenue (General Obligation Bond proceeds), and expenditures in the capital fund. The $2
million that will be used to repay the bonds was moved out of the capital fund into a debt service
fund.
Other minor corrections were made, and we have updated the numbers and narratives to reflect
all of the changes. The Budget Documents and the Council review meetings are all open and
available to the public.
The purpose of the Public Hearing is to accept input, comments and/or questions from citizens
and other affected parties regarding the proposed 2014 Budget including all initiatives,
proposed rate increases, and other related budget matters for 2014. The 2014 Preliminary
Budget Summary is on the City's website home page - www.yakimawagov.
This is the last step in the 2014 budget process. In accordance with state law, Council is
required to conduct a final public hearing and adopt the budget prior to year end. Attached is a
"Budget -in Brief" document that is a short summary of the citywide 2014 budget. Also attached
is the budget ordinance with a schedule of revenues and expenditures that is unchanged
from Preliminary Budget Summary.
Resolution: Ordinance: X
Other (Specify): Public Hearing
Contract: Contract Term:
Start Date: End Date:
Item Budgeted: Amount:
Funding Source/Fiscal
Impact:
Strategic Priority:
Insurance Required? No
Mail to:
Phone:
APPROVED FOR
SUBMITTAL:
RECOMMENDATION:
Public Trust and Accountability
City Manager
A. Conduct the Public Hearing and accept public testimony.
B. Adopt the 2014 Budget for the City of Yakima
ATTACHMENTS:
Description
Upload Date
budget in brief 11/26/2013
2014 Budget Ordinance 11/25/2013
2014 Budget Ordinance Schedule A 11/25/2013
Type
Cover Memo
Ordinance
Ordinance
CIN OF 'Yakima
2014 BUDGET IN BRIEF
The Budget In Brief provides a high-level overview of the preliminary 2014 budget, along with
significant issues that are anticipated to have a material impact in 2014.
Even as the local economy is gradually bouncing back to pre -recession levels, we are still struggling
with underlying conditions that has Yakima's unemployment and poverty rates higher than the
state and national averages. Given these economic challenges, the 2014 budget is balanced within
available resources without new taxes, and is responsive to the City Council's strategic priorities
and the community's needs. To that end, this budget is driven by the results of the 2013 Citizen
Survey that expressed a strong need to address the City's public safety challenges and deferred
infrastructure backlog, and to improve the appearance of the community and stimulate economic
development.
2013 VS. 2014 BUDGET COMPARISON AND 2014 BUDGET OVERVIEW
The chart below shows the 2014 budget, including beginning and ending fund balances in
summary format.
Fund
2013 ESTIMATE / 2014 BUDGET COMPARISON
Revenues Expenditures
2013
Year -End 2014
Estimate Budget
0/0
Chng
2013
Year -End 2014
Estimate Budget
0/0
Chng
General $53,494,980 $57,181,843 6.9% $53,431,800 $56,936,455 6.6%
Parks and Recreation 4,346,215 4357,215 03% 4,128,949 4,412,448 69%
Street & Traffic Operations 5,230,123 4,596,360 (12.1%) 5335,438 4,786,409 (10.3%)
General Gov't Subtotal 63,071318 66,135418 4.9% 62,896,187 66,135312 5.1%
Utilities/Other Operating 65,321,537 64,549,505 (1.2%) 66,633,842 67,737,845 1.7%
Capital Improvement 52,451,182 56,205,847 7.2% 52,210,864 64,889,845 24.3%
Risk Management Reserves 3,638,900 3360,500 (7.7%) 3,795,852 3371,576 (11.2%)
Employee Benefit Reserves 13,444,849 11,802,538 (12.2%) 12,097,944 12,843,823 62%
G.O. Bond Debt Service 3,594,215 4,809,441 33.8% 3,690,000 4,968,849 34.7%
Utility Rev Bond Debt Service 2,129,686 2,146,286 0.8% 2,127,561 2,144,786 0.8%
Trust and Agency Funds 527,200 625,171 18.6% 523,700 622,671 18.9%
Total $204,178,887 $209,634,706 2.7% $203,975,950 $222,714,707 92%
The estimated revenues for all funds are $209.6 million. This represents an increase of $5.4 million or
2.7% more than the 2013 Year -End Estimate of $204.2 million.
The expenditure budget for FY 2014 for all funds is $222.7 million. This represents an increase of
$18.7 million or 8.4% more than the 2013 Year -End Estimate, primarily in the area of capital
improvement.
Budget in Brief -1
2014 BUDGET SUMMARY
Est. 2014 Estimated
Beginning 2014 2014 Use of 2014 Ending
Fund Balance Revenue Expenditure Reserves Fund Balance
General $9,245,322 $57,181,843 $56,936,455 ($245,387) $9,490,709
Parks and Recreation 678,057 4,357,215 4,412,448 55,233 622,824
Street & Traffic Operations 1,159,848 4,596,360 4,786,409 190,049 969,799
General Government Subtotal 11,083,227 66,135,418 66,135,312 (105) 11,083,332
Utilities/Other Operating 16,381,886 64,549,505 67,737,845 3,188,340 13,193,546
Capital Improvement 22,266,439 56,205,847 64,889,845 8,683,998 13,582,441
Risk Management Reserves 1,125,161 3,360,500 3,371,576 11,076 1,114,085
Employee Benefit Reserves 6,288,585 11,802,538 12,843,823 1,041,286 5,247,299
G.O. Bond Debt Service 553,278 4,809,441 4,968,849 159,408 393,869
Utility Revenue Bond Debt Service 1,758,713 2,146,286 2,144,786 (1,500) 1,760,213
Trust and Agency Funds 1,008,424 625,171 622,671 (2,500) 1,010,924
Total $60,465,713 $209,634,706 $222,714,707 $13,080,003 $47,385,710
• The estimated resources (revenues plus beginning fund balance) for all funds are $270.1 million,
an increase of $5.7 million or 3.1% more than the 2013 Year -End Estimate of $264.4 million.
• The use of reserves of $13.1 million is programmed to be primarily out of capital funds, which is
typical as reserves are built over time to be used in major projects. Both Wastewater and Water
utilities are in the middle of major capital programs, and Transit is purchasing 3 buses.
• The operating funds are set with conservative revenue estimates—even though many of them
are budgeted to use reserves, it is likely that future revenue will exceed budget, bringing them
closer to "break-even" by next year-end.
Some features of the Fiscal Year 2014 budget that should be noted are:
Revenues
➢ The property tax levy for FY 2014 is estimated to be $3.113 per $1,000 of assessed value, an
increase of $0.0235 or 0.76% over the current rate.
➢ The voter -approved debt service levy rate is cut by more than half, because 2014 is the last
year of voted debt service for Fire capital improvements. It is estimated to decrease from
$0.0541 to $0.0193.
➢ The combined general operating and debt service levy rate is $3.1323 per $1,000 of assessed
value, a decrease of ($0.0113) or (0.36%).
➢ A 5.1% Wastewater rate increase approved in December 2011 will add approximately $3.81
bimonthly for an average single family residence. This is the 3rd year of a 3 year rate increase.
➢ A 5.5 % Irrigation operating rate increase approved in December 2010 will add
approximately $1.28 bimonthly for an average single family residence. This is the 4th year of
a 4 year rate increase.
➢ Water, Stormwater and Refuse utilities are not proposing rate adjustments in 2014. All of
these operations have rate studies in progress.
Budget in Brief - 2
Personnel
➢ 749.42 total proposed full-time (FTE) positions in all funds for Fiscal Year 2014.
➢ A net increase of 15.25 FTE's from 2013—including 7 with Airport Operations.
➢ Refer to the General Staffing section in the 2014 Preliminary Budget document for more
information.
Capital Improvements
➢ The City will invest $64.5 million in FY 2014 to address its capital needs.
FINANCIAL CONDITION
Despite several years of downward pressure on revenues mainly due to tax relief legislation and
the economic recession, Yakima continues to maintain fiscal stability.
Bond Ratings
The City is proud of affirming a "AA-" on its water and wastewater utilities, and an "A+" rating on
its general obligation bonds from Standard and Poors in 2012. Good ratings mean the City's
general obligation bonds are considered to be of high investment quality, which translates into
lower interest rates and corresponding lower interest payments.
General Government Revenues/Balancing
Ad valorem taxes - To ensure its long-term financial success, the City is proposing to set its operating
property tax levy at rate of $3.113 per $1,000 of assessed value in Fiscal Year 2014. The State law allows
the City to impose 1% above the prior year levy, plus levies for new construction and annexations. The
City estimates to collect $285,000 or 1.7% more in the FY 2014 levy than it did in FY 2013.
The 2014 General Government incremental revenue growth of $3 million is based on the following:
➢ Proposed 1% inflation adjustment in property tax levy plus an estimate
of 0.7% new construction. The combined general operating and debt
service property tax levy will decrease by .36% over 2013 combined tax levy.
➢ 5% growth in sales tax (3% base plus new major retailer)
➢ Franchise and utility tax growth of 5.3% ($500,000 cable tax moved to GG)
➢ Charge for services growth of 14.8% (New Engineering Programs)
➢ State liquor excise tax reinstated
$285,000
$720,000
$777,500
$904,000
$150,000
We have balanced the 2014 General Government Fund budget using the following strategies:
➢ Instituting a 2% vacancy rate. Personnel costs are budgeted at 98% to
account for a minimum 2% position turnover/vacancy
➢ Attrition/vacancy of positions
➢ Health plan cost down 15%
➢ Renegotiated Jail contract
Savings: $950,000
Savings: $175,000
Savings: $1,000,000
Savings: $324,000
Budget in Brief - 3
MAJOR POLICY CONSIDERATIONS
The 2014 budget includes the following investments in the community's key priorities:
Strategic Priority
Budgeted Item(s)
Budget in Brief - 4
Expand police presence with 74 additional vehicles
Eliminate fire brownouts/additional training
Expand bike/foot patrols & additional Parking Enforcement officer
Purchase new fire brush truck
Additional Police training
$798,000
528,900
64,800
130,000
75,000
Invest in Public Safety
Increase attorneys to meet Indigent Defense mandates
600,000
$2,814,300
Hire Gang Free Initiative Operations Manager
88,600
Install 8 automatic license plate readers in police vehicles
135,000
Parking Enforcement Officer
56,800
Reorganize Communications & Information Technology divisions
142,200
Construct/relocate Communications center
195,000
Downtown Master Plan and Retail Master Plan
170,000
Invest in Economic
Downtown Special Events
110,000
Development
Airport marketing and terminal improvements
150,000
$2,830,000
Cascade Mill Site
2,400,000
Road improvements
16,500,000
Airport taxiway improvements & airfield lighting improvements
11,100,000
Street Right of Way use permits (revenue)
150,000
North 1st Street improvements
1,200,000
Hire Graffiti Abatement Coordinator & reinstate Traffic Engineer
144,100
Improve the Built
Update Stormwater, Wastewater & Industrial Wastewater rate stu
110,000
Environment
Expand Code Enforcement
100,000
$34,984,100
Implement Stormwater plan
600,000
Installbiosolids dryer
4,700,000
Complete Wastewater collections master plan
100,000
Pedestrian and bicycle connectivity plan
40,000
Implement pilot recycling program
40,000
City Hall improvements
200,000
Capitol Theatre improvements and management fee
372,000
Increase Convention Center management fee $13,900
708,200
Partnership Development
YPAL facility improvements
50,000
$1,268,200
New Vision contribution
33,000
Southeast Community Center improvements
45,000
Additional $20,000 Visitor Information Center funding
60,000
Capitol improvements
65,000,000
Public Trust and
Customer service academy
50,000
Accountability
Annual citizen survey
35,000
$65,098,000
Annual employee survey
13,000
Budget in Brief - 4
2014 EXPENDITURE BUDGET BY FUND
($222.7 MILLION)
Capital
Improvement
$64.9
29.1%
Utilities/Other
Operating
$67.7
30.4%
Risk Management
Reserves
$3.4
1.5%
Employee
Benefit
Reserves
$12.8
5.8%
- Parks and
Street & Traffic Recreation
Operations $4.4
$4.8 2.0
2.1%
2014 RESOURCES BUDGET BY FUND
($270.1 MILLION)
Capital
Improvement
$78.5
29.1%
Utilities/Other
Operating
$80.9
30.0
Resources=
Revenues plus
Beginning Fund Balance
Risk Management
Reserves
$4.5
1.7%
Street & Traffic
Operations
$5.8
2.1%
Employee
Benefit
Reserves
$18.1
6.7%
Parks and
Recreation
$5.0
1.9%
G.O. Bond Debt
Service
$5.0
2.2%
Utility Revenue
Bond Debt Service
$2.1
1.0
Trust and Agency
Funds
$0.6
0.3
General Fund
$56.9
25.6%
G.O. Bond Debt
Service
$5.4
2.0
Utility Revenue
Bond Debt Service
$3.9
1.4%
Trust and Agency
Funds
$1.6
0.6
General Fund
$66.4
24.6%
Budget in Brief - 5
AN ORDINANCE
ORDINANCE NO. 2013 -
adopting a budget for the City of Yakima, Washington, for
the year 2014; and making appropriations for estimated
expenditures.
WHEREAS, on or before the 21st day of October, 2013, a Preliminary
Budget Summary for the City of Yakima for the year 2014 was duly filed with the
Director of Finance and City Clerk of the City of Yakima and submitted to the
Yakima City Council, all in accordance with applicable laws, and
WHEREAS, subsequent to October 21, 2013, the City Council held two
formal public hearings on the budget on November 19, 2013 and on December 3,
2013, all in accordance with applicable laws, and
WHEREAS, subsequent to its formal public hearing, the City Council
determined the allowance in each item, department, classification and fund, all as
set forth in the final budget document attached hereto, all in accordance with
applicable laws, now, therefore,
BE IT ORDAINED BY THE CITY OF YAKIMA:
Section 1. The budget for the City of Yakima, Washington, for the year
2014 is hereby adopted in its final form and content as set forth in the budget
document entitled "City of Yakima, Annual Budget - 2014," which is attached
hereto as Schedule A and incorporated by reference herein. There is hereby
appropriated for expenditure during the year 2014 the aggregate amounts listed
on the attached Schedule A for each separate fund of the City, all in accordance
with Title 3 of the City of Yakima Municipal Code. Pursuant to Article 11, Section
9 of the City Charter, the City Manager shall administer the expenditure of all
funds appropriated herein, and the City Manager is authorized to take all
necessary and prudent actions to implement the City Council's expenditure
directives and budget appropriations.
Section 2. The City Clerk is directed to transmit a certified copy of the
budget hereby adopted to the Division of Municipal Corporations in the Office of
the State Auditor and to the Association of Washington Cities.
Section 3. This ordinance is one required to be made by the laws of the
State of Washington, and shall be in full force and effect on January 1, 2014,
upon its passage and publication as provided by law.
PASSED BY THE CITY COUNCIL, signed and approved this
day of December, 2013.
ATTEST:
Micah Cawley, Mayor
City Clerk
Publication Date:
Effective Date:
City of Yakima
Annual Budget -2014
Schedule A
Summary of Appropriations by Fund
Fund Description
2014
Estimated
Resources
Page 1 oft
2014
Budget Funds %
Appropriations of Budget
000 General Fund
123 Economic Development
124 Community Development
125 Community Relations
131 Parks & Recreation
141 Street & Traffic Operations
142 Arterial Street
144 Cemetery
150 Emergency Services
151 Public Safety Communications
152 Police Grants
161 Parking & Business Improvement Area
162 Trolley (Yakima Interurban Lines)
163 Front Street Business Improvement Area
170 Tourist Promotion
171 Capitol Theatre
172 Public Facilities District Revenue
173 Tourist Promotion Area
174 Public Facilities District Revenue - Capitol Theatre
198 FRS/Capitol Threatre Reserve
221 L.I.D. Guaranty
272 2002 PFD Convention Center G. O. Debt
281 1985 G.O. Div/Dam Redemption
284 1995 G. O. Street, Parks & Fire
287 1996 G. O. LTD Levy Redemption
289 LID Debt Service Control Fund
321 CBD Capital Improvement
322 Capitol Theatre Construction
323 Yakima Revenue Development Area
331 Parks & Recreation Capital
332 Fire Capital
333 Law and Justice Capital
342 Public Works Trust Construction
343 REET 2 Capital Fund
344 Street Capital Fund
364 Transit Capital Reserve
370 Convention Center Capital Improvement
392 Cum. Reserve for Capital Improvement
421 Airport Operating
422 Airport Capital
$66,427,163
485,304
1,989,996
1,087,272
5,035,272
5,756,209
5,572,411
304,832
1,471,111
3,337,666
912,879
266,474
62,962
10,120
1,982,809
355,430
1,001,085
765,685
672,337
180,995
60,264
1,176, 048
2,997,872
294,976
494,405
339,154
178,785
144,473
3,058,278
139,540
668,608
910,048
1,079,443
1,105,132
16, 500, 000
3,525,799
843,767
6,001,253
1,081,127
11,198,517
$56,936,455 25.6%
456,622 0.2%
1,766,938 0.8%
601,850 0.3%
4,412,448 2.0%
4,786,409 2.1%
5,106,566 2.3%
278,900 0.1%
1,339,282 0.6%
3,218,239 1.4%
469,024 0.2%
244,358 0.1%
57,809 0.0%
9,000 0.0%
1,483,667 0.7%
342,020 0.2%
645,000 0.3%
687,000 0.3%
531,000 0.2%
71,927 0.0%
0 0.0%
1,015,650 0.5%
2,987,284 1.3%
294,975 0.1%
425,940 0.2%
245,000 0.1%
91,000 0.0%
140,000 0.1%
2,473,235 1.1%
100,000 0.0%
296,459 0.1%
750,636 0.3%
732,773 0.3%
772,787 0.3%
16,500,000 7.4%
1,749,000 0.8%
360,000 0.2%
4,948,000 2.2%
1,037,370 0.5%
11,162,885 5.0%
City of Yakima
Annual Budget -2014
Page 2 of2
Schedule A
Summary of Appropriations by Fund
2014 2014
Estimated Budget Funds %
Fund Description Resources Appropriations of Budget
441 Stormwater Operating 3,614,369 2,325,519 1.0%
442 Stormwater Capital 1,610,613 790,000 0.4%
462 Transit 9,128,689 8,240,033 3.7%
471 Refuse 5,946,765 5,670,633 2.5%
472 Wastewater Facility Reserve 1,481,535 400,000 0.2%
473 Wastewater Operating 21,864,739 20,213,432 9.1%
474 Water Operating 10,404,077 9,022,649 4.1%
475 Irrigation Operating 2,685,242 2,063,884 0.9%
476 Wastewater Construction 6,177,701 4,200,000 1.9%
477 Domestic Water Improvement 5,880,636 4,320,000 1.9%
478 Wastewater Facilities 10,199,907 8,375,000 3.8%
479 Irrigation System Improvement 2,195,844 1,621,504 0.7%
481 1998 Water Revenue Bond Reserve 272,207 0 0.0%
483 1996 Wastewater Revenue Bond Reserve 149,163 0 0.0%
484 1991 Water/Sewer Rev Bond Redemption 114,528 0 0.0%
486 1998 Water Revenue Bond Redemption 245,466 240,500 0.1%
488 1996 Wastewater Revenue Bond Redemption 415,814 415,813 0.2%
489 1991 Water/Wastewater Rev Bond Reserve 974,700 0 0.0%
491 2003 Irrigation Revenue Bond Redemption 356,940 322,129 0.1%
493 2003 Wastewater Revenue Bond Redemption 1,167,309 1,166,344 0.5%
494 2003 Wastewater Revenue Bond Reserve 208,871 0 0.0%
512 Unemployment Compensation 554,159 286,582 0.1%
513 Employees Health Benefit 12,937,613 9,867,703 4.4%
514 Workers' Compensation 2,061,264 1,258,630 0.6%
515 Risk Management 4,304,666 3,299,649 1.5%
516 Wellness/EAP Fund 356,238 171,600 0.1%
551 Equipment Rental 9,415,022 5,671,800 2.5%
555 Environmental Fund 545,848 192,950 0.1%
560 Public Works Administration 1,539,548 1,168,866 0.5%
610 Cemetery Trust 630,724 12,000 0.0%
612 Firemen's Relief & Pension 2,181,849 1,259,308 0.6%
632 Yakcorps Agency Fund 1,002,871 610,671 0.3%
Total City Budget
$270,100,418 $222,714,707 100.0%