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HomeMy WebLinkAbout10/27/2009 00 Agenda and Packet g 4.1 k Njo David Edien Mayor micah cawle Asa. . t Mayor l ( i1 i 4'. Yakima Haureen Addison • il ) a B I City C o ount. Kathy Cffey Mod Caney g_..„.:_n_ig, Agenda Bid Lover 129 ADO S -etYakana,WA 98901 Sonia Reffiguez Phone: (509) 575-6000 • Dv (509) 578-6614 City Manager Email: ccouncil@ct.yaldrnowa.us . www.m.yakirnowans Richard Ai paid In Anyone wishing to address the Council, please fill out the form found on the tables and give it to the Kim Clerk YAKIMA CITY COUNCIL STUDY SESSION OCTOBER 7, 2009 -800 — 10:M A.M. COUNCIL. CHAmBERs -met CITY HALL 1. Roll Call 2. Review of 2010 General Govern =nt Budget 4. = nditure Reduction Proposals ow tie Prioribes of Gov; *lid **el as tolls : 9 Public Health and Safety rwritinuationb—Legal proseartion and ind :int defense 9 SeSOLUde Management * Econ. ic Development QualiW of Lide • Custo =ii SerViCe and Cornitsunications 9 Strategic Partserships NOT" - : z se bting 2010 Budget Fe t eta? and refer to 2010 Priorities of Govern tiMai ti "MapnerM r ion 3 of rtm Forecast, which ind « as the proposed bud at reductions. 3. Audience Comments (9:45 — 10:00 amp 4. Adjournment Yakima rl I 1 I P City of Yakima Polon Statement To create a CUittirally diverse. economically odium safe, and s ang Yakima commumty . . Adopted March 2008 ti94 City of Yakima Council C e Info (10-23-09) Budget Update 10-23-09 Council Budget Packet Contents 1. Transmittal Memo 2. Budget Review Schedule (November & December) 3. Updated Budget Forecast: • Revenue Projections 2009 and 2010 • Additional Proposed General Government Budget Reductions 4. Logs - Budget Adjustment Requests: • Council Member Proposed Reinstatements of a Budget Reduction • Council Member Proposed Additional Budget Reduction (none at this time) • Proposed Budget Revenue Enhancements 5. Forms for requesting Budget Adjustments: • Council Member Request for a Budget Reinstatement and/or Additional Budget Reductions • Council Member Request for Additional Revenue Enhancements 6. Budget Forecast — Part 2: Please insert these pages into your Budget Forecast Binder - previously distributed. Enclosed you'll find the Budget Forecast for Sections V and VI — not previously distributed, as this information was not completed at the time the General Government Budget Forecast was submitted to Council. Enclosed for insertion into your Budget Forecast Binders: • Section V Section VI - These two Sections include the proposed 2010 Budget for Non-General Government operating funds and Capital Funds • Updated 3/10% Criminal Justice worksheet in Exhibit III; please replace the pages in your budget hinder with the pages enclosed. (There was an error in the worksheet previously distributed, these pages have been corrected.) 7. Updated Budget Priority "Map" (w/legend) — Council packets only 8. Supplemental Information: Budget Reduction Proposals: • Street lights * • Emergency Management Proposal * • Animal Control (Enclosed) * These updates will be provided at the 10-27-09 Budget Review Meeting MEMORANDUM October 23, 2009 To: The Honorable Mayor and Members of City Council From: Dick Zais, City Manager Rita DeBord, Finance Directo Cindy Epperson, Deputy Director Accounting & Budgeting Re: 2010 Budget Forecast Update The purpose of this memo to advise Council of recent developments in the preparation of the City's 2010 Budget, to provide you with the most recent information regarding current issues, to follow-up on Council Member questions, and to provide a summary of Council's Budget Review Schedule through the end of the year. Council Budget Review Schedule: The second meeting scheduled for the review of staff's proposed 2010General Government budget reductions within the Priorities of Government Model is scheduled for Tuesday, October 27, 2009 in Council Chambers, from 8:00 — 10:00am. We will commence this meeting with a review of the proposed budget reductions in the City Management's service units within the Public Health and Safety Budget Priority (i.e.: The purple boxes under Public Health and Safely on the Priorities of Government Model: Service Unit 103 — Criminal Justice Sales Tax /Police Recruiting and prosecution; Service Unit 132 — Indigent Defense, and Service Unit 131 — Prosecution.) We will then move to Budget Priority #2 - the Resource Management; if Council completes' their review of the proposed budget reductions in this area, we'll move directly to Budget Priority #3 — Economic Development, and so on until Council has completed their review of the proposed reductions in all Budget Priorities, or until we run out of time — whichever comes first. Should there not be sufficient time on October 27`" for Council to complete their review of the proposed budget reductions within all six Budget Priorities, the next budget review meeting, which is scheduled for Tuesday, November 3 will pick up where Council left off at the October 27 meeting. Once all proposed 2010 General Government budget reductions have been reviewed, Council will commence their Departmental Budget Review of all areas - City-wide. Each Tuesday morning in November has been scheduled for this purpose, with the last Tuesday of the month scheduled as a tentative (overflow) meeting, if needed. Page 1 of 3 \\ Apollo \ Users Vanson\BUDGET\Budget - 2010\10-23-09 Council Budg Pict - Tbl.Contents cloc The public hearing on the 2010 budget, and related property tax levy, has been scheduled for Council's regular business meeting on November 17, 2009. As in the past, the Budget Wrap-up meeting (where Council makes their final decisions on the 2010 budget - including Policy Issues and budget reductions) is scheduled for the first Tuesday morning in December and the Budget adoption meeting is scheduled for Council's 2 business meeting of December — which has tentatively been moved forward one week to Tuesday, December 8, 2009. A copy of the November and December budget review meeting schedule is enclosed. Updated Forecast: At this time of year, staff constantly monitors revenues and expenditures and continually re-assesses our current projections for both year-end and next year's budget forecast. Since submitting the 2010 Budget Forecast Document to you on October 5` staff has updated our revenue projections, resulting in a net reduction in the 2010 General Government revenue of approximately $200,000 — the net impact in the 2009 General Government year-end forecast was minimal. The City Manager has briefed each of you on this latest revenue forecast, and he has met with the Department Directors to advise them of the reduction in 2010 General Government revenues and to prepare a plan for additional reductions to the proposed budget to offset this loss of revenues. The primary changes in the Revenue projections include: (a) a reduction in 2009 and 2010 projected interest earnings of $224,000 and $345,000, respectively (the 2009 impact was offset by revenue projection increases in other revenues), and (b) an increase in projected Sales Tax revenues — based on 10 months of actual 2009 receipts — of approximately $150,000 in both 2009 and 2010. There were a few other revenues for which the projections were increased or decreased by relatively small dollar amounts. Refer to the enclosed information for a full list of adjustments and more information regarding these updates. Proposed Budget Modifications Log: At your last Council Budget Review meeting, three suggestions were made by Council for reinstatement of a budget reduction item. Staff has developed a Log to track these suggestions, as well as a log for any further budget reductions and/or revenue enhancements that may come up over the duration of the budget review process (copy of each Log is enclosed). Council Request Forms: Enclosed for Council's convenience, you'll find two forms for your use in proposing changes to the 2010 General Government Budget Forecast. A Form has been prepared to facilitate tracking of Council Requests and the preparation of any necessary follow up of proposed budget modifications to: (a) Reinstate a current expenditure not included in the proposed 2010 budget or to Further Reduce the 2010 budget for a specific expenditure; and (b) Propose a revenue enhancement. Page 2 of 3 \\ Apollo \Users\ranson \BUDGET\ Budget - 2010\10-23-09 Council Budg.Pkt.- Tbl,Contents.doc Each of these forms is included in this budget packet for your use; additional copies will be provided at your request. For purposes of timely communications to the frill council and to assist staff in budget preparation and any research or follow up that may be needed, we encourage Council Members to forward their proposals to the City Manager or Budget Staff as soon as possible. We will then transfer your individual requests onto a summarized log and present Council with an updated list at each Budget Review meeting. Updated Priorities of Government Model "Map": Provided to Council Members only at this time. (Changes to date include correction to wording in Top Box and the addition of a legend to designate the Department represented by each color on the map.) Supplemental Information Regarding Bud2et Reduction Proposals (relates to Section III of the Budget Forecast : • Street lights * • Emergency Management Proposal * • Animal Control (Enclosed) * These updates will be provided at the 10-27-09 Budget Review Meeting Page 3 of 3 \\ Apollo \Users \ranson\ BUDGET\Budget - 2010\10-23-09 Council Budg.Plci,- Tbl.Contents.cloc CI I Y OF YAKIMA 2010 BUDGET PROCESS COUNCIL BUDGET REVIEW SCHEDULE — SUMMARY * (as revised 10/22/09) Date / Time: Topic / Purpose: Budget Reduction Review: • Over Flow • Council Discussion Direction Date: Tuesday, November 3, 2009 Commence Budget Review by Dept.: Meeting: Council Budget Review Municipal Court - (Includes Probation) Time: 8:00 a.m. - 11:30 a.m Police - (Includes Law & Justice Capital) Fire Public Safety Communications Public TATUrIc,5_27_ Administration - Streets & Traffic - Transit - Refuse - Equipment Rental - Parks & Recreation - Cemetery Date: Tuesday, November 10, 2009 City Administration Meeting: Council Budget Review - Council - City Manager - City Clerks and Records Time: 8:00 a.m. - 11:30 a.m, - Human Resources - Employee Insurance Benefits - Purchasing - Community Relations - Legal - Indigent Defense - Risk Management - Wastewater - Stomiwater - Water - Irrigation Commuj & ono It ic ' ve ment - Planning - Codes - ONDS - Economic Development Date: Tuesday, November 17, 2009 - CBD Capital - Tourism Promotion - Capitol Theatre Meeting: Council Budget Review Time: 8:00 a.m. - 11:30 a.m. Finance (Includes Information Systems & Utility Services) • v I I duction DiscuslLon Public Hearing on Ad Valorem (Property) Tax. Date: Tuesday, November 17, 2009 Public Hearing on Budget Meeting: Regular Council Budget Review (Public Comment Requested) Time: Public Hearings: 7:00 p.m. - Outside Agencies - Intergovernmental Agencies Date: Tuesday, November 24, 2009 Over Flow - If needed Meeting: Council Budget Review - Time: 8:00 a.m. - 10:00 a.m. Date: Tuesday, December 1, 2009 Meeting: Council Budget Review Budget Wrap-Up -- Budget Wrap-Up Document Time: 8:00 a.m. - 11:30 a.m. Date: Tuesday, December 8, 2009 Meeting: Regular (Adjourned) Bus. Mtg. Budget Adoption -- Council Agenda Item Time: 2:00 p.m. * All meetings will be held at City Hall In Council Chambers General Fund - 2009 and 2010 Forecast Budget Adjustments - Revenue (as of October 21, 2009) Revenue : 2009 2,010 • Interest Earnings (224,000) (345,000) • Property tax 50,000 • Sales Tax 150,000 153,000 • WW Utility Tax Revenue (In-Lieu) 14,000 34,000 • Permit Revenue 30,000 • Engineering Revenue 25,000 • Print Shop Revenue (30,000) (15,000) • Sales Tax Interest Earnings (State) (17,000) (15,000) • Additional ATF Contribution (cost reimbursement) 5,000 Sub Net Revenue Reductions (2,000) (183,000) (a) Increase / decrease from Year-end estimate (1) Interest Earnings: The reduction in projected interest earnings is based on the results of a recent thorough review and analysis of all City investments and the related investment markets. This review was delayed due to personnel issues / changes within the Finance Division. The primary factors that contributed to the reduced interest earnings include a significant drop in interest rates during the year, several large investments with higher interest rates that matured in the past few months, which will be reinvested in the current low interest rate market, and personnel changes that temporarily hindered active investment activity. (Note: Interest Earnings received from the State on our Sales Tax revenues was also reduced due to the drop in these revenues and interest rates.) (2) Sales Tax: Projections of 2009 and 2010 Sales Tax revenues were increased after receipt of October Sales Tax numbers, which indicate that the large drop in these revenues has slowed and possibly leveled off. Thus, staff updated these projections to be slightly less severe than previously estimated. (3) Other Revenue Adjustments: Workload in Permits and Engineering indicates these revenues will come in slightly stronger than previously forecasted. The Fire Department recently received notice of eligibility for up to $5,000 in contributions from the Department of Alcohol, Tobacco and Firearms (ATF) for reimbursement of certain overtime costs for the Canine Unit. rd 10-19-09 Budget Adjustments 10/23/2009 General Government Additional 2010 Budget Reductions Priorities of Government Model Reductions $200,000 Additional Reduction Allocation: Identified 1. Public Health & Safety 68.5% 137,000 238,000 2. Resource Management 14.8% 29,600 32,000 3. Economic Devel. 5.4% 10,800 15,000 4. Quality of Life 7.2% 14,400 15,000 5. Customer Service 3.1% 6,200 5,000 6. Strategic Partnerships 1.0% 2,000 Total $200,000 $305,000 Service Reduction Options: 1. Public Health & Safety „o p) Fund 2 Police Officers (1currently budgeted) from COPS Grant 78,000 iK)) Turn lights out on 500 street lights (400w = approx. $120 p/yr) 30,000 - non-intersection - arterial streets only c) Bring Emergency Mgmt. planning In-house/ mid year ($60,000 p/yr) 30,000 d) Additional Savings - Jail Cost Reduction Efforts 100,000 238,000 2. Resource Management a) Eliminate 50% Financial Tech. Position (equates to 25% of Accountant Staff) 32,000 - maintain $10K (+) in O.T. - position elimination for 1 yr 3. Economic Development: a) Transfer YCDA to Economic development Fund 15,000 4. Quality of Life a) Defer replacement of Parks & Recreation Admin. to 2nd Qtr (to 4/01/09) 15,000 5. Customer Service & Communications: a) Defer YMC Updates for one year (last updated 8/2009) 5,000 Total of Service Reductions Identified $305,000 11ApolloWsers\ranson\BUDGET\Budget - 2010\10-19-09 Addl. Budget Reductions.xls 10/23/2009 City of Yakima 2010 Budget Forecast Part 2 On October 2, 2009, staff submitted the General Government portion of the 2010 Budget Forecast to Council. The balance of the 2010 Budget Forecast information is enclosed. Budget Forecast Information Enclosed: • Sections V - Other Funds, and • Section VI - Capital Improvement Fund. Please insert this information into your Budget Forecast Binders in the appropriate section tab. • Exhibit III - Updated 3/10% Criminal Justice worksheet. There was an error in the worksheet previously distributed, these pages have been corrected. Please replace the pages in Exhibit III of your binder with the pages enclosed. Should you have any questions about the enclosed Budget Forecast information, budget staff will be available at your Tuesday, October 27th Council Budget Review meeting to assist you. City of Yakima 2010 Budget rec Part 2 Section V Other Funds OT R OPE TING • ► ELATE "RISE F I'S 2009 year -end estimates for the City's Other Operating and Enterprise Funds are summarized below: 2009 BUDGET STATUS 2009 2009 EST. 2009 2009 AMENDED ACTUAL ESTIMATED EST. ENDING FUND BUDGET EXPENDITURES VARIANCE RESOURCES BALANCE Economic Development $146,173 $98,970 $47,203 $286,955 $187,985 Neighborhood Development (Housing) 4,525,424 4,261,559 263,865 4,865,960 604,401 Community Relations 577,802 543,824 33,978 1,343,775 799,951 Community Services 487,712 349,712 138,000 395,880 46,168 Growth Mgmt /Commute Trip Red Fund 49,745 49,745 0 49,838 93 Cemetery 260,420 256,912 3,508 309,469 52,557 Emergency Services 1,167,430 1,141,339 26,091 1,240,897 99,558 Public Safety Communications 3,028,165 2,900,907 127,258 3,161,344 260,437 Police Grants 0 0 0 224,000 224,000 Downtown Yakima Improvement District 204,592 202,399 2,193 211,666 9,267 Trolley (Yakima Interurban Lines) 248,207 221,621 26,586 225,552 3,931 Front Street Business Improvement 3,000 3,000 0 11,002 8,002 Tourist Promotion 1,474,205 1,303,209 170,996 1,488,903 185,694 Capitol Theatre 318,513 318,513 0 447,167 128,654 PFD Revenue - Convention Center 696,000 666,775 29,225 817,508 150,733 Tourist Promotion Area 405,088 374,834 30,254 375,248 414 PFD Revenue - Capitol Theatre 498,000 480,000 18,000 498,000 18,000 Stormwater Operating 1,801,039 1,799,628 1,411 2,145,651 346,023 Transit 7,460,107 6,903,596 556,511 7,515,751 612,155 Refuse 4,652,022 4,592,614 59,408 4,845,037 252,423 Wastewater 16,875,924 16,717,073 158,851 18,625,769 1,908,696 Water 7,303,953 7,257,874 46,079 8,999,158 1,741,284 Irrigation 2,784,200 2,756,837 27,363 2,928,485 171,648 Equipment Rental 5,998,773 5,182,028 816,745 9,293,796 4,111,768 Environmental 1,381,220 855,000 526,220 1,349,244 494,244 Public Works Administration 1,199,463 1,177,556 21,907 1,364,923 187,367 TOTAL $63,547,177 $60,415,525 $3,131,652 $73,020,978 $12,605,453 All Operating and Enterprise Funds are anticipated to end 2009 with positive fund balances. This analysis includes appropriations approved by Council through September. All operating funds are anticipating actual expenditures within authorized levels. Other Funds • Section V - I 2010 projections for Other Operating and Enterprise Funds expenditures and resources are reflected below. (Resources include the beginning fund balance plus current year revenue, to arrive at a total available to spend.) PROPOSED 2010 BUDGET 2010 2010 2010 PROJECTED PROJECTED PROJECTED FUND RESOURCES EXPENSE BALANCE Economic Development $230,985 $99,306 $131,679 Neighborhood Development (Housing) 2,977,847 2,529,187 448,660 Community Relations 1,281,151 561,448 719,703 Community Services 384,502 303,334 81,168 Growth Mgmt /Commute Trip Reduction Fund 93 0 93 Cemetery 299,307 256,155 43,152 Emergency Services 1,163,428 1,110,329 53,099 Public Safety Communications 3,196,747 2,994,394 202,353 Police Grants 814,000 683,019 130,981 Downtown Yakima Improvement District 219,437 209,989 9,448 Trolley 12,917 7,848 5,069 Front Street Business Improvement Area 11,537 5,000 6,537 Tourist Promotion 1,590,194 1,469,180 121,014 Capitol Theatre 439,081 319,749 119,332 PFD Revenue - Convention Center 831,733 689,000 142,733 Tourist Promotion Area 378,619 378,205 414 PFD Revenue - Capitol Theatre 521,000 502,000 19,000 Recovery Program Grants 814,000 814,000 0 Stormwater Operating 2,446,023 2,103,128 342,895 Transit 7,728,255 7,200,452 527,803 Refuse 4,939,573 4,649,892 289,681 Wastewater 19,167,910 17,570,394 1,597,516 Water 9,136,121 7,774,807 1,361,314 Irrigation 2,943,248 2,758,394 184,854 Equipment Rental 9,102,072 5,198,027 3,904,045 Environmental 1,057,244 828,450 228,794 Public Works Administration 1,372,698 1,191,886 180,812 TOTAL OTHER OPERATING AND ENTERPRISE FUNDS $73,059,722 $62,207,573 $10,852,149 See Exhibit I for additional detail of Other Operating and Enterprise Funds. The following chart depicts a summary of resources and expenditures for major operating and Utility fund operations for 2010, including contingency, operating reserve funds and employee benefit funds. Although Equipment Rental is included on the table above, it is split into an operating component and capital component for charting operating vs. capital budgets. 2 - Section V • Other Funds 2010 RESTRICTED OPERATING AND RESERVE FUNDS 2010 Forecast Division : Dollars in Millions Reserves, Risk Mgnit, Emp Benefits $17 043,047 Cap Theatre, Cemetery, Trust Rs vs 23,343,581 Wastewater 19,167,910 Azint",12T1hl_ilifist.taMilif3q6,,est. Water/Irrigation 10,533,201 Irrig ation Fees, Reserves Transit 7,200,452 7 Tranit Sales Tax, Oper Grants, Fare Box Refuse 4,649,892 4,939,573 Refuse Rates Equipment Rental 3,572,527 0 Expenditures 3,615,596 RitballARM Charges 0 Resources Stormwater 2,103,128 2 Stormwater Fees Special Purpose, Housing, Emer Sys 14,852, Public Wks Admm, Cable TV, Misc 17,496,520 016"mlorpccue, Total Expenditures $77,525,120 Total Resources $90,816,827 OPERATING FUNDS For more information on policy issues that affect these funds see the Policy Issue Summary in Exhibit II. THE ECONOMIC DEVELOPMENT FUND This fund reflects resources of $230,985 and expenditures of $99,306 for 2010. These funds are planned to be used to spur economic development. Expenditures include an allocation of Community and Economic Development positions and continuation of Federal legislative funding efforts. THE COMMUNITY DEVELOPMENT FUND (OFFICE OF NEIGHBORHOOD DEVELOPMENT SERVICES - ONDS) This fund contains programs funded by Housing and Urban Development (HUD), including the Community Development Block Grant (CDBG) and Home ownership (HOME) grants. Expenditures are budgeted at $2 th i 2,5 9,187 and are subject to the public hearing process. With a focus on stimulus funding in the Federal Budget, the 2010 budget anticipates a similar allocation as the 2009 program grants. Because of the programmatic nature of the Community Development Budget, along with differences in reporting time frame for Federal programs, the City budget is annually adjusted to reflect the final outcome of prior year programs. The 2010 ending balance is projected to be $448,660. Other Funds • Section V-3 THE COMMUNITY RELATIONS FUND The Community Relations fund expects resources of $1,281,151 for 2010. Expenditures are estimated to be $561,448, leaving the balance estimated at $719,703 for year-end, earmarked primarily for capital expenditure on production equipment/cable TV facilities. THE COMMUNITY SERVICES FUND This fund includes the 4th year of the Healthy Families Yakima program, which is a 5-year demonstration project through the Department of Social and Health Services. Total resources, which include grant revenue and match contributions, are estimated to be $384,502, and expenditures are budgeted to be $303,334, leaving an ending balance of $81,168. THE GROWTH MANAGEMENT FUND This fund has special projects/grants related to growth management issues that have been accounted for in this fund. There is no activity planned for this fund. The projected ending balance is $93. CEMETERY FUND Resources within this fund for 2010 are projected at $299,307, expenditures are estimated to be $256,155, and the estimated ending balance is projected at S43,152. The Cemetery Fund is depending on a $50,000 operational subsidy from the Parks and Recreation Fund. THE EMERGENCY SERVICES FUND Resources in this fund reflect revenues of $1,163,428 and expenditures of $1,110,329 related to the provision of Emergency Medical Services, and are supported by an allocation of the countywide special EMS Property Tax Levy, which was renewed by the voters in September 2002. The 2010 ending balance is projected to be $53,099. THE PUBLIC SAFETY COMMUNICATIONS FUND This fund expects resources of $3,196,747 and expenditures of $2,994,394 for 2010, leaving a balance of $202,353 at year-end. This fund accounts for 9-1-1 Calltakers, supported by Yakima County 9-1-1 resources in the amount of $1,372,350. General Fund expenditures include a transfer of $850,000 for dispatch. POLICE GRANTS This is a newly created fund. It accounts for the Federal/State forfeited narcotics and the COPS Hiring Recovery Program (CHRP), both of which have stringent reporting requirements. CHRP is a three year program grant with a total grant of $1.5 million and will be used to hire seven new police officers. Resources for 2010 are estimated to be $814,000 and expenditures are budgeted at $683,019, leaving an ending balance of $130,981. DOWNTOWN YAKIMA BUSINESS IMPROVEMENT DISTRICT (DYBID) FUND Resources in this fund are projected to be $219,437, coming primarily from the new Business Improvement District established mid-2008, while expenditures are projected at $209,989. The ending balance for 2010 is projected at $9,448. Much of the 2010 budget is targeted toward maintaining the recent downtown revitalization efforts. 4 — Section V • Other Funds THE TROLLEY FUND This fund projects resources of $12,917 and expenditures of $7,848 for 2010. It should be noted that the final budget will be modified to include the continuation of a grant- supported improvement project at the Trolley barn. The year-end balance is projected at $5,069, THE FRONT STREET BUSINESS IMPROVEMENT AREA FUND This fund projects resources of $11,537 and expenditures of 55,000 — leaving an ending balance of S6,537 for 2010. THE TOURISM PROMOTION/YAKIMA CONVENTION CENTER FUND This fund's budget anticipates resources of S1,590,194 (this includes a transfer of 5150,000 from the Public Facility District) and expenditures of $1,469,180, and thus is expected to end 2010 with a balance of $121,014. THE CAPITOL THEATRE FUND This fund is expected to have resources of $439,081 and expenditures of $319,749, leaving an estimated ending balance of $119,332. THE PUBLIC FACILITIES DISTRICT - CONVENTION CENTER FUND This fund includes resources estimated to be $831,733 for 2010. Expenditures are estimated to be $689,000. Of this amount $460,000 for debt service on the Convention Center bonds issued in 2002 and $150,000 is for supplemental support of Convention Center operations, while $55,000 is for Convention Center Capital Fund. This leaves a fund balance of $142,733 at the end of 2010. THE TOURIST PROMOTION AREA This fund accounts for a self-assessment imposed by the lodging industry to promote tourism. Resources are estimated to be S378,619, with expenditures programmed at $378,205, leaving a balance at the end of 2010 of $414. THE PUBLIC FACILITIES DISTRICT - CAPITOL THEATRE This fund includes resources estimated to be $521,000 for 2010. Expenditures are estimated to be $502,000. Of this amount S460,000 is designated for debt service on the Capitol Expansion bond issued in 2009 and $30,000 for Capitol Theatre Construction Fund to be available for project contingency. This leaves a fund balance of $19,000 at the end of 2010. RECOVERY PROGRAM GRANTS This is a new fund established to account for Federal Recovery Grants that have stringent reporting requirements and cross operational lines. These are 100% grants (i.e. no local match requirements), so that both the revenues and expenditures for 2010 are $814,000, with no ending reserve balance. Staff is currently of the understanding that a portion of the grant can be advanced. If it is reimbursement only, options will need to be researched to provide cash flow. Other Funds • Section V— 5 STORMWATER OPERATING FUND Expenditures in this fund are estimated to be $2,103,128 and resources are projected to be $2,446,023 for 2010. An ending balance of $342,895 is currently projected for 2010. This is the third year of the new Stormwater Utility - the budget was developed assuming a rate of $40 per Equivalent Residential Unit (ERU) annually (see Policy Issue). The expenditure budget includes reimbursement of the Wastewater Utility for its advanced funding of the Stormwater program, and a $200,000 transfer to the streets fund to support the street sweeping program. TRANSIT FUND Expenditures in this fund are estimated to be $7,200,452 and resources are projected to be $7,728,255 for 2010. Total Transit sales taxes for 2009 are forecast to be $4,400,000 which is about $450,000 less than the 2008 actual. The 2010 budget includes a total of $4,445,000 with 54,295,000 allocated to operations and $150,000 to capital. Fortunately, the savings in fuel prices and PERS rates made up for the sales tax reduction, so that route reductions are not yet needed to balance this budget. This fund also includes an operating grant of $1,765,000. An ending balance of $527,803 is currently projected for 2010. THE REFUSE FUND The expenditure budget in this fund for 2010 is $4,649,892. Total resources are estimated to be $4,939,573, and an ending balance is currently projected at $289,681 (see unbudgeted policy issue for a potential rate increase to cover rising landfill costs). WASTEWATER FUND Resources for this fund in 2010 are expected to total $19,167,910. Expenditures are budgeted at $17,570,394 and the 2010 year-end balance is currently projected to be $1,597,516. Transfers of about $3.10 million to Wastewater Construction Funds, and $3.11 million to provide for Wastewater Bond redemption and repayments of Public Works Trust Fund Loans are currently programmed in this budget. The proposed 2010 Sewer budget includes continued implementation of the Sewer Comprehensive Plan and the Wastewater Facilities Plan. The 2010 projected resources include the continuation of a prior year policy issue to implement a rate adjustment of 3.5%. See policy issues for position upgrade and new capital projects. WATER FUND Resources of $9,136,121 are projected for 2010 in this fund. Expenditures are estimated to be $7,774,807 leaving $1,361,314 at the end of 2010. These costs include 5800,000 transfer to the Capital Fund, and about $566,000 to provide for Water Bond Debt Service, repayments of Water Public Works Trust Fund Loans and $100,000 to continue implementation of a new utility management / billing system. The 2010 projected resources include the rate adjustment of 5.5% that was approved by Council in 2008. IRRIGATION FUND Resources for 2010 are projected to be $2,943,248 in this fund, and expenditures are estimated to be $2,758,394, which includes a transfer of $881,000 to the Irrigation Capital Fund, about $356,000 to provide debt service for an Irrigation bond and Public Works 6 — Section V • Other Funds Trust Fund loan and $60,000 for the new utility management / billing system. The 2010 ending fund balance is projected to be $184,854. THE EQUIPMENT RENTAL FUND The budget for this fund in 2010 is $5,198,027 of which $3,438,770 is the maintenance and operations budget, and $1,759,257 is the Equipment Replacement budget. Resources are expected to be $9,102,072 while the ending fund balance for 2010 is expected to be $3,904,045, most of which represents capital equipment replacement reserves. THE ENVIRONMENTAL FUND This fund was created to provide for cleanup of environmental hazards. Funding for the program is from a surcharge on vehicle fuel sales in the Equipment Rental Fund. For 2010, $1,057,244 in resources is expected to be available (this includes $300,000 of Department of Ecology grants to complete the Richardson Airway Dirt Removal and Yakima Airport Tank Cleanup projects) and $828,450 is expected to be spent. A year-end balance of S228,794 is projected. PUBLIC WORKS ADMINISTRATION FUND Expenditures for 2010 are expected to be $1,191,886 for this fund. Resources for 2010 are expected to be S1,372,698 generated from operating funds located in the Public Works complex, resulting in a year-end balance of S180,812. A vacant Department Assistant II position is deleted from this budget as part of the General Government budget reduction measures. The savings translated into a reduction in charges to the Streets and Parks funds. RESERVE FUNDS — EMPLOYEE BENEFIT RESERVES THE UNEMPLOYMENT COMPENSATION RESERVE FUND This self insured fund in estimated to end 2010 with a balance of $264,980. Resources are projected to be $501,841 and expenditures for claims and other related expenses are estimated at $236,861. Due to an anticipated increase of unemployment claims from budget reduction measures, rates are adjusted from .00247% to .00309%. EMPLOYEES HEALTH BENEFIT RESERVE FUND Expenditures in this fund for 2009 are projected to be S10,553,586, while resources are $12,708,769, leaving an ending balance projected to be $2,155,183. The 2010 budget includes a rate adjustment of about 7.5%. The insurance board continues to monitor the plan and review potential cost containment measures, with a goal of reducing the magnitude of future annual premium increases. THE WORKERS COMPENSATION RESERVE FUND This fund is estimating a year-end balance of $1,107,895, the result of resources totaling S2,574,590 and expenditures of $1,466,695. Ongoing efforts in claim management and safety training are in place to slowdown the number of claims/costs. Other Funds • Section V — 7 WELLNESS/EMPLOYEE ASSISTANCE PROGRAM (EAP) FUND Projected total resources for 2010 are $204,475 in this fund, and expenditures are $89,849 with a projected year-end balance of $114,626. THE FIREMEN'S RELIEF AND PENSION FUND This fund is projecting resources of $2,414,406 and expenditures of $1,624,792, leaving an estimated 2010 year-end balance of $789,614. The Fire Pension property tax allocation for 2010 of $1,502,765 is 2% less than the 2009 allocation of $1,532,765 in order to keep more resources in the General Government funds, since this fund's reserves are almost 50% of the annual budget. The City is mandated to allocate property tax to fund pension and LEOFF I medical and long-term care requirements. OPERATING RESERVES RISK MANAGEMENT RESERVE For 2010, Risk Management Fund departmental contributions totaling $2,293,000 are programmed from City departments, an increase of 5.0% for most operating divisions. The increase helps pay for liability and other insurance coverage and increased claims costs, and to meet reserve requirements. These charges, along with interest earnings, combine for projected 2010 revenues of $2,589,000. Total resources to the Risk Management Reserve for 2010 are expected to be S3,653,275. Based on personnel costs, claims experience and other insurance/ professional services costs, expenditures are estimated to be $2,759,337, and the year-end 2010 reserve balance is estimated to be $893,938. These reserve levels are still considered marginal in comparison to the existing liability for incurred claims; however, the combination of reductions in deductible levels and proactive legal overview of land use actions are expected to limit future liability. The reserve balance in this fund will continue to be monitored for adequacy. GENERAL CONTINGENCY RESERVE FUND The Contingency Reserve Fund is estimated to end 2010 with a balance of $1,919. For 2010, $50,000 is programmed to be transferred from the General Fund to this fund. $225,000 is appropriated for contingency purposes during 2010. CAPITOL THEATRE RESERVE The Capitol Theatre Reserve projects resources for 2010 of S461,441. Interest earnings on this balance partially support an annual transfer to the Capitol Theatre Operating Fund Reserve of $71,927. The projected 2010 ending balance is $389,514. GENERAL FUND CASH FLOW RESERVE General Fund cash flow reserves for 2010 are estimated at $2,856,334. This source is a contingency for unbudgeted policy issues, results of negotiations for unsettled bargaining units, other unknown expenses and potential revenue shortfalls. 8 — Section V • Other Funds In summation, the City's 2010 General Reserve position is estimated to be as shown in the following chart. 2010 GENERAL RESERVE POSITION 2008 2009 2010 FUND ACTUAL ESTIMATED PROJECTED Contingency Fund $351,919 $176,919 $1,919 General Fund Cash Flow 6,798,731 4,207,894 2,856,334 Capitol Theatre Reserve 521,118 458,441 389,514 Risk Management Reserve 1,146,767 1,063,775 893,938 TOTAL $8,818,535 $5,907,029 $4,141,705 The economic downturn has put pressure on the general reserves of the City. Because these reserves are at minimum levels, they will be scrutinized for negative trends and adequacy as we move forward. Exhibit I contains additional detail of funds categorized as Operating Reserves. Other Funds • Section V— 9 10 — Section V • Other Funds City of Yakima 2010 Budget Forecast Part 2 Section VI Capital Improvement Funds • ITAL ROVEME F IS For 2009, a number of capital improvements were programmed for an amended capital budget of $62.3 million. However, capital improvement expenditures for 2009 were estimated to be $30.8 million, a spending level approximately $3L5 million below budgeted levels. These projects are rebudgeted in 2010 along with additional capital improvements. Examples of the projects being rebudgeted include the Railroad Grade Separation; 16th Avenue & Washington Avenue reconstruction; Summitview & 66th Avenue Signalization; the Capitol Theatre expansion / refurbishment; Automated Meter Reading; and Irrigation system refurbishment. (See Exhibit I for a summary of the status of the capital funds.) The following describes the relationship of resources and expenditures for major capital budgets of the City, including debt service and the capital portion of the Equipment Rental Fund, 2010 RESTRICTED CAPITAL AND DEBT SERVICE FUNDS 2010 Forecast Division Budget Dollars In Millions Streets $25,035,667 29459,662 Onli1111 4444 Et11$4141-ttg ll4P Rink' trill-MT—Rtrearirelers Wastewater 8,111,970 12,795,856 ' 7 " 17 7 Reserves, Charges, Loans Water/Irrigation 6,203,272 8,850,036 Reserves, Charges, Loans Transit 2,693,750 3,430,603 Reserves, Grants, Taxes Equipment Rental 1,625,000 MI 0 Total Expenditures 5,486,476 Reserves, Charges 0 Total Resources Storm Water 368,040 679 Reserves, Charges Sp Purp Cap, Misc G.O. Debt 9,575,017 11,939,376 Reserves, Grants, Taxes, Loans Total Expenditures $53,612,716 Total Resources $72,841,534 For 2010, Capital Fund expenditures of $45,527,472 are estimated as follows, inclusive of carry-over projects from 2009; Capital improvement Funds 3 Section VI— 1 STREET / OTHER INFRASTRUCTURE IMPROVEMENT PROJECTS Total projects of $24 million (including carryover projects and Debt Service; excluding capital transfers of REET 1 ($100,000) to support Fire and Parks capital improvement). • Summitview and 66th Avenue signalization (carry-over) - $615,000 • Nob Hill overpass repair (carry-over) - $564,000 (Federal grant) • Sixteenth Avenue and Washington Avenue reconstruction (carry-over) - S1,201,000 (State grant, REET 2) • Railroad grade separation - $18,200,000 (State and Federal grants; Public Works Trust Fund loan) • Debt Service - $1,193,883 • Other miscellaneous projects including a $155,000 contingency; $456,007 utility services system (funded by wastewater, water, and irrigation operating funds); $287,743 Consolidated Financial System (funded by various Operating Funds) - $2,326,847 Arterial Street Gas tax and the Real Estate Excise Taxes are the primary local revenue sources for street projects. These revenues are used to match state and federal grants when possible to maximize funding for projects. IRRIGATION IMPROVEMENT FUND Total 2010 projects - S2,600,000. • General irrigation system refurbishment Phase III (carry-over) - $900,000 • Capitol Hill refurbishment (carry-over plus 2010 additional project cost) - $1,200,000 • General irrigation system refurbishment Phase IV - $300,000 • Other irrigation system improvements - S200,000 DOMESTIC WATER IMPROVEMENT FUND Total 2010 projects - $2,997,200. • New well project (carry-over) - $1,157,200 (funded by Public Works Trust Fund loan) • Design Water Treatment Plant Lagoons (carry-over) - $100,000 • 2010 Water main replacement - S150,000 2 — Section VI • Capital Improvement Funds • Automated Meter Reading System (carry-over plus 2010 additional project cost / shared with Wastewater) - $1,500,000 • Other water capital projects - $90,000 FIRE CAPITAL FUND Total 2010 projects - $555,500. • Machinery and Equipment (staff vehicle, mobile data replacement) - $58,500 Fire Station 94 remodel (carry-over) - $460,000 ( funded by REET 1) Other miscellaneous upgrades to equipment and fire stations - $37,000 WASTEWATER CAPITAL EXPENDITURES Facility projects and other sewer improvements, including sewer line extension rehabilitation and other costs, total 55,905,000. • Congdon sewer main (carry over) -- $750,000 • Wastewater Collection System Evaluation (topic of Policy Issue) - $200,000 • Neighborhood sewer main (carry over) - 5300,000 • Automated Meter Reading System (shared with Water) - $750,000 • Speedway/Race St Interceptor (additional project cost) - 5850,000 • Supervisory Control and Data Acquisition (SCAIDA) Tip Out & Power Distribution (additional project cost) See Policy Issue - $735,000 (Revenue Bond) )› 2009 Wastewater Comprehensive Plan update (additional project cost) - $150,000 • Building for Nutrient Removal Equipment (topic of Policy Issue) - 5300,000 • National Pollutant Discharge Elimination System (NPDES) and Total Maximum Daily Load (TMDL) Issues See Policy Issue - 51,000,0000 • Other Wastewater miscellaneous capital needs (including a $670,000 contingency) - 5870,000 Capital Improvement Funds • Section VI -3 STORMWATER CAPITAL FUND Total 2010 budget — $368,040: A Contingency for Capital Facilities projects (partial carry-over) — $125,000 A Fair Avenue/Nob Hill drainage improvement — $130,000 J Street Low Impact Development (LID) - S113,040 (state grant — joint project with Yakima County) TRANSIT CAPITAL The 2010 budget of $2,693,750 is for miscellaneous capital needs and vehicle replacement. A Continuation of repaving project at Public Works — S320,000 A Bus Replacement plan ( 5 buses) — $2,000,000 federal grant (topic of Policy Issue) A Replace Dial-a-ride vehicles — $228,750 A Other capital needs — $145,000 PARKS IMPROVEMENTS PROJECTS S560,000 for various project/capital needs in 2010. A Upper Kiwanis development (carry-over)— $475,000 (state grant, line of credit, REET 1 and contributions) A Other capital needs — $85,000 OTHER CAPITAL PROJECTS I TRANSFERS A City Hall rehabilitation/refurbishment/contingency — S250,000 for continued refurbishment projects. (REET 1) A Transfer of REET 1 to support Fire and Parks capital improvements — S100,000 A Law and Justice Capital fund — S1,071,000 for the Police Station/Legal Center related equipment and projects including: • Vehicle replacement — $115,000 • Technology and Equipment to enhance crime reduction — $500,000 (Federal grant) • Safety and communication equipment for mobile units — $175,000 • Other miscellaneous projects and equipment — $281,000 A Convention Center Capital Improvements — $191,000 is programmed for ongoing capital needs of the Center for 2010. 4 — Section VI • Capital Improvement Funds LID CONSTRUCTION There are no local improvement district projects budgeted in 2010. CBD CAPITAL IMPROVEMENT This fund includes $1,135,252 for improvements in the Central Business District. • Contract for maintenance (reduced from $50,000 in 2009) — $40,000 • Downtown Revitalization Phase IV - $988,000 (state grant) • Other projects / contingency — $107,252 CAPITOL THEATRE CONSTRUCTION $3,150,000 is budgeted for the completion of phase II of the Capitol Theatre expansion project, funded primarily by bond proceeds. SUMMARY Overall, Capital Fund expenditures in the 2010 Budget Forecast are $45,527,472, which is $16,726,877 or 26.9% less than the 2009 amended levels of $62,254,349. Many areas are in the midst of capital programs such as the utilities and streets (including the railroad grade separation, which is in the planning stages in 2009). In some instances, the "next" phase as included in the 2010 budget is more than 2009, such as automated meter reading and grant funded transit bus purchases. In other instances, the ongoing budgets are less than 2009, such as the Nob Hill overpass repairs, the Capitol Theatre expansion and Final SCADA. Ongoing pressures on revenues available for General Government Capital funds has pushed spending down in Parks, Fire and Law & Justice. The Fire Department has prepared a policy issue to request an ongoing source of funding for apparatus replacement. Ongoing resources for capital needs have been diminishing, and this topic will likely remain in the forefront of future budget discussions. All of these changes net to an overall decrease in the capital fund expenditures for this budget cycle. GRANTS The City has been successful in obtaining grants for many different purposes. The following table identifies all of the grants / interlocal revenues budgeted to be received in 2010. Citywide, grants add to over $37 million, which is more than 20% of total revenues. This grant summary is included in the Capital Improvement section because Capital grants make up almost 60% of the total grants awarded. Coincidentally, grants make up about 60% of revenue in the Capital Improvement funds. Capital Improvement Funds • Section VI — 5 2010 GRANTS (Federal, State & Inter local Subsidies) AMOUNT DEPARTMENT DESCRIPTION OF GRANT Federal / State Capital Grants Law & Justice Capital BYRNE Disp Agencies Grant $500,000 Law & Justice Capital JAG Grant 21,478 Arterial Streets Fair Avenue/Nob Hill Intersection Rebuild 40,000 Arterial Streets W.O. Douglas Trail 6th Ave & Naches Bridge 92,047 Arterial Streets Nob Hill Bridge Repair 564,000 Cum Res for Capital Improvement Railroad Grade Separation - Fed Highway Admin 13,256,000 Cum Res for Capital Improvement Railroad Grade Separation - Trans Imp Board 3,000,000 Arterial Streets Dept of Transportation RR Crossing Wa Ave 261,650 Arterial Streets 16th & Washington Reconstruction 996,000 Arterial Streets WO. Douglas Trail Enhancement 100,000 Transit Capital Reserve WSDOT Grant 140,000 Cum Res for Capital Improvement Utility System/Stormwater DOE Grant 53,040 CBD Capital Improvement Downtown Revitalization Phase 4 988,000 Stormwater Capital Fund Low Impact Development Demonstration 84,781 Transit Capital Reserve ARRA Direct DOT Grant - Busses 2,001,005 Total Federal / State Capital Grants $22,098,001 Federal / State Operating Grants - General Government Police Police BYRNE Earmark Grant $110,000 Police State Criminal Alien Assist Program Grant 20,000 Police Traffic Safety Commission 40,000 Fire State Patrol Fire Training 3,000 Police OPD Public Defense Grant 150,000 Parks and Recreation ALTC Reimbursement SCSA State Res 30,900 Parks and Recreation Senior Center - Footcare 30,200 Parks and Recreation State Senior Citizen Day Care/ Transportation 10,000 Parks and Recreation State Transportation 500 Parks and Recreation Americorp Grant Thru Employment Security 40,000 General Fund Property Taxes 6,330 Police ARRA COPS Grant 530,000 Municipal Court Judicial Salary Contribution 50,000 Total Federal / State Operating Grants - General Government $1,020,930 Federal / State Operating Grants - Other Funds Community Development Community Development Block Grant $1,185,386 Community Development HUD HOME Program 682,410 Transit FTA Current Year Operating Grant 1,765,000 Transit JARC Pass Thru DOT Grant 65,000 Community Services Healthy Families - Yakima 303,334 Emergency Services Dept of Health - Prehospital Grant 1,726 Stormwater Operating Ecology Mapping Grant 100,000 Transit ADA Grant - Department of Transportation 92,500 Refuse Dept of Ecology Alternative to Burning Grant 25,000 Environmental Richardson Airway Dirt Removal Grant 100,000 Environmental Yakima Airport Tank Cleanup Grant 200,000 R&M Energy ARRA Dept of Energy Recovery Program 814,000 6 - Section VI • Capital Improvement Funds Total Federal / State Operating Grants - Other Funds $5,334,356 AMOUNT DEPARTMENT DESCRIPTION OF GRANT Federal Entitlements Police Federal Forfeited Property $25,000 PFD Capital Theatre Capitol Theatre - Build Amer Bond Subsidy 108,896 Total Federal Entitlements $133,896 State Shared Revenue Police Criminal Justice - High Crime $490,000 Police Criminal Justice - Violent 80,000 Police Criminal Justice - Special Programs 46,000 Police MVET DUI Payment 16,000 General Fund Liquor Excise Tax 405,000 General Fund Liquor Board Profits 695,000 Economic Development City Assistance 35,000 Parks & Recreation Criminal Justice - Special Programs 21,100 Streets Gas Tax 1,200,000 Arterial Streets Arterial Street Gas Tax 550,000 Firemen Relief & Pension Fire Insurance Premium Tax 72,800 Total State Shared Revenue $3,610,900 Intergovernmental Contract / Services Police Police - Fairgrounds $7,000 Police Resource Officers 370,440 Police Personnel Services - Training 25,000 Fire Fire - EMS District #10 30,000 Fire Fire Investigator Services 600 Fire Fire Training Programs 9,000 Fire Fire Training Services 74,038 Purchasing Purchasing Services - County 205,000 Parks and Recreation School District #7 - Swim Programs 15,000 Emergency Services EMS Levy 1,061,394 Public Safety Communications Fire District #10 21,000 Public Safety Communications 911 Services Contracts 1,372,350 Public Safety Communications Fire Dispatch Services 190,568 Public Safety Communications Information Technical Services 46,520 Public Safety Communications Police Dispatching Service 121,168 Public Safety Communications ET Maintenance - Contract 4,950 Police Drug Enforcement Agency 25,000 Public Facilities District Public Facilities District Revenue 680,000 PFD - Capitol Theatre Public Facilities District Capitol Theatre 503,000 Fire Capital Fire Protection Charge /State Fac 2,000 Cum Res For Capital Imp Consolidated Financial System Software 125,000 Transit Selah Transit Bus 125,000 Transit Selah Transit Dial A Ride 45,000 Environmental Richardson Airway Dirt Removal 20,000 Environmental Yakima Airport Tank Cleanup 108,000 Total Intergovernmental Contract / Services $5,187,028 TOTAL 2010 GRANTS $37,385,111 Capital Improvement Funds • Section VI - 7 8 — Section VI • Capital Improvement Funds City of Yakima 2010 Budget Forecast Exhibit III Criminal Justice Sales Tax Replacement Pages (Pages: Exhibit III — 3 through 6) GENERAL GOVERNMENT BUDGETS t' 1999 THROUGH 2010 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2010 AMENDED AMENDED AMENDED AMENDED AMENDED AMENDED AMENDED AMENDED AMENDED AMENDED PRELIMINARY VS I O YEAR BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET 2009 INCREASE General Fund Criminal Justice $17,157,733 $17,477,709 $18,992,948 $19,702,698 $20,061,761 $20,794,116 $22,85Z422 $25,014,331 $26,935,856 $28,471,541 $28,504,392 0.1% 66.1% Other 14,860,211 14,914,045 15,571,751 16,913,032 17,476,192 17,862,426 19,557,208 18,856,452 19,782,839 $20,240,301 $19,836,631 (2.0 %) 33.5% Parks & Recreation 3,361,230 3,456,199 3,504,423 3,620,410 3,832,816 3,905,396 4,074,592 4,199,143 4,420,906 $4,249,796 $4,232,014 (0.4 %) 25.9% Street /Traffic 4,047,156 4,218,454 4,826,542 5,192,894 4,883,030 5,273,574 5,522,653 5,907,885 6,213,833 $5,686,692 $5,379,043 (5.0 %) 32.9% Total $39,426,330 $40,066,407 $42,895,664 $45,429,034 $46,253,799 $47,835,512 $52,011,875 $53977,807 $57,353,434 $58,648,330 $57,952,079 (1.2 %) 470% JUNE JUNE JUNE JUNE JUNE JUNE JUNE JUNE JUNE JUNE JUNE 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Consumer Price Index 168.0 174.5 181.3 184.1 1857 190,4 194.8 203.8 210.6 223.6 2199 309% cn co co (1) Excludes double budgeted transfers between general government funds. 2- s� ti, 0 o' • I LA.) CRIMINAL JUSTICE SALES TAX-'3% EXPENDITURES AND REVENUES 2009 2010 2000 2007 2008 YEAR-END PROPOSED GENERAL FUND ACTUAL ACTUAL ACTUAL ESTIMATE BUDGET Police Salaries & Benefits (includes overtime) $455,870 $551 $601 $630,000 $704,468 Miscc8aneo"s(uoi/o,nu/fvrVt,^vr|) 111 140 216 84,060 119,060 Liability Insurance 5,750 6,325 6 6,973 7,322 Professional Services/R & M Contractors 90,574 6,322 14,969 5,000 5,000 Yakima County Jail Cost 415,852 423,000 395,810 463,500 452 Total Police Department $1 $1 $1,235,395 $1 $1 The .3% Criminal Justice funds support six full time Patrol Officers including: all wages, overlime uniforms, supplies, insurance and training expenses. Additionally, these funds are used for repairs, maintenance, communications and fuel used for additional patrols. A portion of the increased Jail costs are also paid out of this fund, Municipal Court Salaries & Benefits (includes overtime) $64,150 $49,669 $116,485 $176,101 $173,692 Professional Services 70,431 72,054 49,510 48,000 48,000 Miscellaneous (office supplies/travel/dues) 0 248 6,740 18,000 18 Other Expenses (Crime Victims Comp) 6 0 0 0 Total Municipal Court $141 $121,971 $172,743 $242 $239,692 The Criminal Justice funds support two Municipal Court Clerk positions and a 1/2-time Court Conumiv»inoo, including all wages, overtime supplies and training. Additionally, this fund supports building security, interpreter services and witness and juror fees associated with processing the court's case load. Legal Prosecution Salaries & Benefits (includes overtime) $99,941 $99,667 $127,097 $I57,017 $162977 Professional Services 0 0 12 5,000 5,000 Miscellaneous (office supplies/travel/dues) 2 2,869 2,635 3,500 3,350 Total Legal Department $10I157 $102,535 $142 $165,517 $171 The .3% Criminal Justice Sales Tax is being used to supplement criminal justice functions throughout Yakima County. This money fully funds one Legal Assistant II position, one Assistant City Attorney Il position including mandatory continuing legal education expenses and dues and subscriptions for required Associations. Information Systems Salaries & Benefits (includes overtime) $28 $27,849 $37,895 $29,937 $34,356 Small Tools & Equipment 41 40 56 O 0 Miscellaneous 0 0 10,493 12,000 10,000 Professional Services/R & M Contractors 0 0 903 1,000 0 Data Processing Equipment 0 25 15,704 0 0 Total Information System $69 $93 $121 $42 $44 The portion of the .3% Criminal Justice Sales Tax allocated to Information Systems is used to enhance the effectiveness of the law enforcement and other Criminal Justice personnel through the expanded use of technology. Currently, the emphasis is on mobile technology for the patrol officers, A portion of these funds are budgeted for temporary salaries used to support the mobile computing and technology infrastructure that has been expanded and enhanced through Criminal Justice Tax over the last two years. 4 - Exhibit III • Supplemental Information 2009 2010 2006 2007 2008 YEAR-END PROPOSED GENERAL FUND (CONT...) ACTUAL ACTUAL ACTUAL ESTIMATE BUDGET Animal Control/Codes Salaries & Benefits (includes overtime) $59,393 $62,988 $57,211 $70 $71 Misc. (uniforms/supplies/fuel/cellular phone) 2 3,965 3,671 3,400 5,013 Total Animal Control/Codes $61 $66,953 $60 $74,162 $74,553 The .3% Criminal Justice Funds support one full-time Animal Control Officer including all wages, overtime, supplies and communication necessary for this position. Human Resources Professional Services (employee recruitment) $10,936 $11 $7,I00 $7,500 $7,500 .3% Criminal Justice funds are used to provide for contract services, testing and other necessary recruitment costs for positions funded by the criminal justice sales tax. GENERAL FUND TOTAL EXPENDITURES $1 $I,530 $1 $1 $1,805 OTHER FUNDS Public Safety Communication Salaries & Benefits (includes overtime) $3,008 $56 $129,522 $119,985 $127,539 General Operations Support 67,8I7 0 0 0 ■ Misc. (uniforms/supplies/fuel/cellular phone) 4,978 0 0 0 Small Tools & Equipment 0 0 3 6,760 0 Total Public Safety Communication $75,803 $56'069 $133,102 $126,745 $127,559 Criminal Justice funds allocated to this department are used for additional positions necessary to accommodate the increased workload generated by law enforcement activities, These funds provide for two full-time Dispatchers and temporary support for Police electronic maintenance including all wages, overtime and supplies. Law & Justice Capital Small Tools & Equipment $134,282 $5,459 $6,6I1 $55 $25,000 Operating Equipment 0 0 7,93I 42 0 Vehicles 25 81 0 0 Capital Outlay 16 168 0 0 Total Law & Justice $175,898 $255,143 $14,542 $97,250 $25 The .3% Criminal Justice funds support Capital expenses related to the new positions, technology and services created with this tax. TOTAL EXPENDITURES $1,7I7,553 $I $1,887%I6 $1�46,625 $1,957,817 Revenue $1 $1,797,194 $1,901 $1,850 $1,050,300 REVENUE OVER (UNDER) EXPENDITURES 526,174) ($44,985) $14,809 ($96,325) ($107,517) CUMULATIVE BALANCE $385.587 $340.602 $355.411 $259.046 $151.569 Supplemental Information • Exhibit III - 5 SA • 'Y I BE FIT COSTS COSTS TO TOTAL BUDGET The following chart represents the relationship of the City's salary and benefit costs to total budget for General Government and other funds of the City. The City's General Fund ranks the highest with salary and benefit costs, representing 75% of total fund expenditures. However, employee compensation and benefit costs for an individual department within the General Fund as a percentage of its total costs range from 45.7% to 93.5%. In several departments (including Police, Legal and Information Systems) if contracted services were excluded, the percentage of salary and compensation costs as a percentage of the division total costs would be considerably higher than what is depicted on the following chart. Parks, Streets and other operations for the most part are more capital-intensive, and the ratio of salary and benefits to total costs are representative of that type of operation. Section II includes an analysis based on information gathered by the State Auditor's Office. The chart in this section identifies the per capita salary costs for Yakima and 11 other comparable cities, and indicates that: • The City of Yakima spends, on the average, $148 less per capita on salaries than other comparable cities. • Yakima employs fewer people per capita than other cities. To minimize the number of regular employees and to maintain service levels during periods of peak workload demands, the City uses contract and temporary labor when feasible. 6 — Exhibit III • Supplemental Information City of Yakima 2010 Budget Forecast Supplemental Information MEMORANDUM DATE: October 23, 2009 TO: Honorable Mayor and Councilmembers Dick Zais, City Manager FROM: William Cook, Director of Community and Economic Development Joseph Caruso, Acting Codes Administration Manager SUBJECT: Animal Control funding — 201.0 budget Background: At your Tuesday, October 13th Council Budget Study Session, staff explained the rational behind our proposal to shift one general fund supported FTE from Animal Control Officer to a Community Development Block Grant (CDBG) eligible vacant Code Compliance position. We proposed this shift to 1.) Reduce the department's general fund expenses by approximately $71,539, and 2.) Save a valued employee by switching their assignment and funding source over to the City's federal CDBG program. Please note: funding code compliance activities and personnel is an eligible CDBG expense. Funding animal control activities is not. Council Request: At your budget study session, Council asked staff to provide additional infonnation on current animal control workload and ongoing discussions with the Yakima Humane Society. Council Questions: We have attached three maps related to animal control workload: 1.) Animal control calls from June 2004 — June 2005. This map shows the distribution of 4,446 calls that were handled by two animal control officers. Our third officer, funded through the .3% Criminal Justice Sales Tax, was hired in August 2005. 2.) A similar map of Animal Control calls for the period of October 2008 to October 2009, showing the distribution of 4,655 animal control calls handled by three animal control officers. The call volume in 2008 is only 4.7% higher than the call volume in 2004/2005, although the City increased in size by approximately 15% over the same period of time. As the two maps show, our highest concentration of calls continues to be east of 40' Avenue. 3,) A map of "high priority" calls received between October 2008 and October 2009, This map displays a subset of all calls, focusing on those calls we consider most response-critical: dangerous animal, animal bite, animal assistance, etc. The attached list of complaint "types" further describes the three categories: 1.) high priority; 2.) secondary and 3.) non-essential. Each is approximately one-third of the total call volume. Please note: a "barking dog" complaint is categorized as non-essential because we believe these complaints can be handled with less involvement of our animal control officers. 4.) Split responsibility of 1 FTE between code compliance and animal control duties. Yes, this could be done, however, the potential of audit findings increase significantly when an employee is asked to spend part of their time working on an eligible activity and part of their time working on an ineligible activity. It has always been our intent that our reassigned employee could be called upon in an emergency for backup if needed to assist animal control. This arrangement would be much easier to defend and explain when our CDBG program is audited. More specifically, in response to the questions "How many animals do we pick up in a year," we offer the following statistics: 2007 1406 2008 1083 2009 (YTD) 1031 Options for 2010 budget 1.) Approve staff recommendation to eliminate one animal control position (from 3 to 2) and shift the person in that position over into a CDBG funded vacant code compliance position. Direct staff to make necessary adjustments in service priorities, if needed, to maintain a high level of customer service and timely response to "high priority" calls. 2.) If Council is concerned that prioritization of calls and the commensurate reduction in service that will be provided by two animal control officers will not be satisfactory, approve the employee shift described above and evaluate the benefit and city authority to enter into a contract of service with the Yakima Humane Society to provide the services of one animal control officer. The fully loaded personnel cost of our City Animal Control Officer is approximately $71,500 vs. the Humane Society cost of approximately $37,000. The Humane Society currently provides animal control services to Sunnyside, Grandview, Prosser, Toppenish, Yakima Housing Authority, Selah and Union Gap. Only Yakima County and the City of Yakima have their own designated animal control officers. Please note: Moxee and Tieton use their Public Works Departments to respond to animal control calls. This option will reduce the animal control expense to the general fund by approximately $34,500. 3.) Maintain the 2010 budget for current three position staffing level in the Codes Division. Identify alternative cuts in the general fund to balance the budget. Regardless of which option Council ultimately chooses, staff recommends approval of a Policy Issue (attached) to restore the 2007 animal licensing fees. Fees were reduced effective January 1, 2008 with the projection that such a change would increase license sales and increase license fee revenues. Neither outcome has materialized. Sales are down and revenue is off approximately $20,000 per year. These additional dollars that could be used to help fund the City's animal control program. 2010 MAJOR POLICY ISSUES DEPARTMENT: Community and DIVISION: Code Administration Economic Development POLICY ISSUE TITLE: RESTORE 2007 DOG LICENSE FEES 1. Proposal —This proposal is a request to restore animal control license fees back to the 2007 fee schedule. Since the dog license fees were reduced in 2008, the City of Yakima has experienced a revenue loss of approximately $20,000 each year. The recovered fee experiment initiated in January 2008 was to be revisited in the future to reevaluate the goal of increasing license sales and revenue. Restoring these fees would supplement the general fund in supporting the cost of the animal control program. The fee change initiated in 2008 has lost revenue dollars and license sales have dropped. 2. a. Fiscal Impact- .If fees were restored to the 2007 schedule, the general fund would see an increase of approximately $20,000 annually. b. Proposed Funding Source — Restored license fee increase c. Public Impact —. Increase in dog fee licenses d. Personnel Impact — maintain three animal control officer positions. e. Required Changes in City Regulations or Policies —Council Policy Issue f. Legal Constraints, if applicable -- None. g. Viable Alternatives — leave current fees in place Conclusion and/or Staff Recommendation -- This is a Council Policy decision. 2007 - 2009 Dog License Revenue Comparison 2007 Total Revenues $36,304.00 2008 Total Revenues $15,312.00 (-$20,992.00) 2009 Projected Revenues $12,000.00 (-$24,304.00) Total Estimated Lost Revenues `08/'09 $45,296.00 Current Dog License Fee Schedule: Restored Fee Schedule: 1 year altered tag — new $5.00 $15.00 1 year altered tag — renewal $5.00 $12.00 1 year unaltered tag — new $30.00 $30.00 1 year unaltered tag — renewal $25.00 $25.00 Penn. Senior Citizen altered tag $5.00 $25.00 Penn. Senior Citizen unaltered tag $30.00 Disabled Citizen tag No fee No fee Replacement tag $5.00 $5.00 3 year altered tag $33.00 3 year unaltered tag $70.00 Sheet 1 ACO Complaicit Types Received 10/01 /06-10/01 /07 Complaint Type Totals Abandoned Animal 122 Animal Abuse 87 • • Animal At Large 1225 • Anita l Attack 42 • Arafat)] Site 79 0 Animal Fight 3 Animal Neglect 248 • • RO Animal Nuisance 140 Animal Tangled 15 0 teeet.F, Sgt. • • ' 4 5 Assistance Needed 84 • Banned Dog Sighting 276 • Banned Dog at Large : 101 • e Dangerous Animal 326 Dead Animal 483 O Dog In Hot Vehicle 32 • • Injured Animal 2911 . .44*,:oFtepset • Officer Needs Assistance o 884' Owner Arrested 7 Sick Animal 76: • Stray Animal 288 • Sum. 5861 ati 41.01 . . Sheet 1 ACO icst Types Received /01/07 Complaint Type Totals Abandoned Animal 121 Animal Abuse 51 • Animal At Large 1052 An mal Attack 54 • Animal Bite 101 • Animal Fight 5 Animal Neglect 248 • Anima! Nuisance 211 Animal Tangled 14 Animal in Trap 27 A ssistance Needed 114 Banned dog Sighting 207 Banned Dog at Large 105 pan us Animal 355 Dead Animal 426 Dag In Hot Vehicle 15 t „t '.. • Injured > Anima! 257 Of f leer Needs Assistance Owner Arrested 2 :et. 00 //0 1 • Sheet 1 Complaint Type Totals Sick Animal 81 ar. Stray Animal 331 Sum: 5484 2 Sheet 1 ACO Complaint Types Received I 0101 - F) Complaint Type Totals Abandoned Animal 129 Aggressive Animal 17 Animal Abuse 23 • Animal At Large 800 • Animal Attack 53 • Animal Bite 7 • Animal Fight 1 Animal Neglect 280 Anima! Nuisance 293 • Animal Tangled 13 Assistance Needed 139 Panned Dog Sighting 159 • • Banned Dog at Large 103 • Dangerous Animal 92 Dead Anima] 467 Dog In Hot Vehicle 14 a'8 7 • Injured Animal 2791 um��iu l�w4� • Officer Needs Assistance °nom s Potential Dangerous Maned 207 Sick Animal 49 • :Stray Animal 172 • Sum: 4667 bl . 0 1