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HomeMy WebLinkAbout09/02/2014 05C 2014 2nd Quarter Financial Trend Monitoring ReportBUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. 5.C. For Meeting of: September 02, 2014 IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII ITEM TITLE: SUBMITTED BY: SUMMARY EXPLANATION: 2nd Quarter Financial Trend Monitoring Report Cindy Epperson, Director of Finance and Budget As part of the 2013 Strategic Plan, the City Council implemented a Financial Trend Monitoring System (FTMS) in order to provide a more simple "performance at a glance" of budgetary and revenue trends. The FTMS compares key financial and economic indicators as an "early warning system" regarding the financial and economic health of the City, and assigns "positive", "normal", "warning", and "negative" labels to revenues and expenditures. At the end of the first quarter 2014, we are seeing typical variances tied to timing --such as annual dues/assessments. All categories received a "normal" ranking, as actual results are within 5% of expected levels at this point in time. There were no categories receiving a "warning" or "negative" designation. As part of developing the 2015 budget, the 2014 actual results are being compared to budget, and there are areas that will require an appropriation. Examples include new grant awards and retirement cashouts. Since we are experiencing modest growth in revenue above the total budget in 2014, most of the appropriations will be balanced with additional revenue. We expect to come to Council for the first reading of an appropriation in the near future. Overall, first quarter results are as anticipated. Resolution: Other (Specify): Report Contract: Contract Term: Start Date: End Date: Amount: Ordinance: Item Budgeted: NA Funding Source/Fiscal Impact: Strategic Priority: Public Trust and Accountability Insurance Required? No Mail to: Phone: APPROVED FOR SUBMITTAL: RECOMMENDATION: Accept Report ATTACHMENTS: Description 2nd Qtr 2014 Financial Report City Manager Upload Date 126/2014 Type Cover Memo MEMORANDUM August 28, 2014 TO: The Honorable Mayor and Members of the City Council FROM: Tony O'Rourke, City Manager Cindy Epperson, Director of Finance & Budget SUBJECT: 2014 2nd Quarter Financial Trend Monitoring Report We are submitting for your review the City of Yakima's 2014 2nd Quarter actual compared to budgeted Revenue and Expenditure Report for all city funds. Beginning fund balances shown are subject to final adjustments made as a result of the year-end closing process, which will not be officially concluded until the State Auditor's work is completed. We do not, at this time, expect that any adjustments will materially affect the balances represented in this report. This report is summarized by type of fund, and incorporates the Financial Monitoring System presentation. Information is reported by functional type, in the following order: > Performance at a Glance - Financial Monitoring System > City -Wide Overview > General Fund Revenue Analysis > General Fund Expenditure Analysis > Other Funds Analysis > Top 10 Capital Project List > Exhibits - Fund detail that supports the summaries: • Exhibit I - Other Operating/Enterprise Funds • Exhibit II - Capital Improvement Funds • Exhibit III - Reserve and Other Funds • Exhibit IV - Bond Redemption Funds PERFORMANCE AT A GLANCE General Fund Revenues Expenditures Operating/Enterprise Funds (1) Capital Funds (l) Reserve, Trust & Agency Funds (1) Bond Redemption Funds (1) STATUS PAGE NORMAL NORMAL NORMAL NORMAL NORMAL NORMAL Legend: Revenues exceed budget >5%, Expenditures below budget >5% Revenues exceed budget <5%, Expenditures below budget <5% Revenues below budget between 3-5% Revenues below budget >5% (1) These funds are graded on a net Revenue measurement. 2/3-5 2/6-7 8/11 8/12 8/13 8/14 POSITIVE NORMAL WARNING PDFConvert.4358.1.FIN_Report_2nd_Qrtr_2014.docx 1 of 14 CITY WIDE OVERVIEW REVENUE COMPARISON (Budget vs. Actual) General Parks and Recreation Street & Traffic Operations General Government Subtotal Operating/Enterprise Funds Capital Funds G.O. Bond Redemption Funds Utility Revenue Bond Redemption Funds Employee Benefit Reserves Operating Reserves Trust and Agency Funds Total General Parks and Recreation Street & Traffic Operations General Government Subtotal 2013 -------------- 2nd Qtr Percent Actual Rec'd Budget $27,459,044 2,011,371 2,805,273 32,275,688 31,622,328 12,418,028 1,603,094 1,063,781 6,807,129 2,836,426 529,150 $89,155,624 52.3% 49.3% 51.8% 52.1% $57,181,843 4,357,215 4,596,360 2014 2nd Qtr Actual $29,617,570 2,217,037 2,337,229 66,135,418 34,171,836 48.0% 64,649,505 31,659,984 26.4% 56,205,847 28,625,795 42.0% 4,809,441 1,642,354 50.0% 2,146,286 780,495 46.5% 11,802,538 5,740,415 79.1% 3,360,500 2,841,239 100.2% 625,171 552,385 Percent Rec'd 51.8% 50.9% 50.8% 51.7% 49.0% 50.9% 34.1% 36.4% 48.6% 84.5% 88.4% 44.5% $209,734,706 $106,014,503 50.5% EXPENDITURE COMPARISON (Budget vs. Actual) Operating/Enterprise Funds Capital Funds G.O. Bond Redemption Funds Utility Revenue Bond Redemption Funds Employee Benefit Reserves Operating Reserves Trust and Agency Funds Total -------------- 2013 - 2014 ---------------------------- 2nd Qtr Percent 2nd Qtr Percent Actual Spent Budget Actual Spent $26,175,777 2,058,175 2,500,636 30,734,588 30,010,678 12,363,865 1,127,645 396,280 5,833,859 1,381,757 55,192 $81,903,864 49.0% $58,138,453 $29,010,537 50.4% 4,412,448 2,120,567 45.5% 4,786,409 2,596,019 48.8% 67,337,310 33,727,123 49.9% 48.1% 54.2% 50.1% 45.4% 67,837,845 30,119,162 44.4% 22.6% 64,889,845 16,415,920 25.3% 29.4% 4,968,849 1,196,958 24.1% 18.6% 2,144,786 369,892 17.2% 39.9% 12,843,823 6,786,331 52.8% 35.3% 3,371,576 1,786,125 53.0% 10.7% 622,671 183,787 29.5% 39.1% $224,016,705 $90,585,298 40.4% PDFConvert.4358.1.FIN_Report_2nd_Qrtr_2014.docx 2 of 14 GENERAL FUND REVENUE ANALYSIS General Sales Tax Crim. Justice Sales Tax Property Tax Utility & Franchise Taxes Charges for Services State Shared Revenue Other Intergovernmental Fines and Forfeitures Other Taxes Transfers from other Funds Licenses and Permits Other Revenue Total Revenue Beginning Fund Balance Total Resources GENERAL GOVERNMENT REVENUES 2014 -------- Revenues through 6/30 -------- Amended Percent 2012 2013 2014 Budget Receipted Status $6,380,538 $6,952,180 $7,236,681 $14,820,000 48.8% 1,184,129 1,398,434 1,496,667 2,970,000 50.4% 8,390,289 8,612,036 8,789,196 15,899,000 55.3% 7,103,518 7,151,868 8,205,592 15,332,500 53.5% 3,074,166 3,171,816 3,249,266 7,007,789 46.4% 1,607,595 1,203,760 1,462,966 2,835,400 51.6% 549,045 753,784 678,171 1,436,751 47.2% 789,983 815,955 765,273 1,670,000 45.8% 922,722 977,332 962,810 1,420,500 67.8% 732,149 579,783 648,986 1,415,000 45.9% 423,979 386,930 373,827 769,200 48.6% 371,701 271,575 302,401 559,278 54.1% 31,529,814 32,275,453 34,171,836 66,135,418 51.7% 9,948,220 10,908,094 10,682,085 10,682,085 41,478,034 43,183,547 44,853,921 76,817,503 58.4% NORMAL NORMAL NORMAL NORMAL NORMAL NORMAL NORMAL NORMAL NORMAL NORMAL NORMAL NORMAL NORMAL NORMAL Sales Tax - This important revenue source is continuing to grow above 2013 levels. Through the second quarter of 2014, sales tax is 4.1% more than the prior year, and through the eight months ending in August, we are 6.0% ahead of 2013 year to date for the same time period. The 2014 budget represents a 2.9% growth rate, so this revenue is currently on target to exceed budget by year end. Property Tax - The first half of the Property Tax assessment is due to the Yakima County Treasurer by April 30, and the second half is due October 31. Therefore, the second quarter receipts are typically slightly more than 50% of the annual budget, because of accounts that are paid in full in April and payments in full when property sells. The budget is set based on assumptions of new construction and collection rates—the 2014 actual levy was very close to the levy assumptions made, so this major revenue should meet or slightly exceed budget, depending on collection rate. Utility and Franchise Taxes - This category is demonstrating strong growth, with 2014 exceeding 2013 by $1,053,724 or 14.7%. However, many of the increases were anticipated in the budget, so that we are only 3.5% over the halfway mark. Contributing factors include the move of the Cable TV utility tax from a debt service fund in prior years to General Fund in 2014 - adding about $267,000; a combination of rate increases for the gas and electric utilities, coupled with harsher weather conditions; and other rate and usage variances. Natural gas use does slow down for the rest of the year, so this category is not expected to keep growing at the rate experienced in the first half of the year, but it should exceed budgeted amounts by year end. PDFConvert.4358.1.FIN_Report_2nd_Qrtr_2014.docx 3 of 14 Charges for Services - Some accounts in this category are collected ratably throughout the year, while some are seasonal in nature, such as the Parks and Recreation programs and Engineering/Construction Inspection. Therefore, the slightly negative variance is a timing difference, and considered normal. Fines and Forfeitures - Since the legal department began reviewing charges in preparation for the indigent defense rule changes, fewer tickets/charges are going forward through the municipal court system. This revenue is now estimated to be less than the budget, but is still within the 5% range. Other Taxes - This category consists primarily of Business Licenses and Gambling Taxes. Business licenses are due in January for the year, so that over 67% of this category has been collected by June 30. The positive variance is a timing difference, and considered normal. Other categories all contain some timing exceptions, and are still expected to meet the budget. Overall, general government revenues are up by about $1,896,000 or 5.9% over 2013—most of these increases were anticipated in the 2014 budget. 2014 General Government revenues are 51.7% of budget at the midway point in the year, and we anticipate year end to exceed the budget within the 5% range which maintains the "normal" ranking. PDFConvert.4358.1.FIN_Report_2nd_Qrtr_2014.docx 4 of 14 GENERAL FUND REVENUES - By Month 2012 2013 2014 Jan 3,668,912 4,451,264 4,818,553 Feb 4,206,186 4,267,636 4,770,111 Mar 4,861,758 4,896,583 4,984,702 Apr 9,388,842 9,758,283 10,717,557 May 4,833,268 4,733,408 4,573,329 Jun 4,146,240 4,168,515 4,307,587 Jul 4,636,431 3,962,439 Aug 3,574,114 3,798,660 Sep 4,250,150 4,758,660 Oct 9,673,506 10,070,031 Nov 4,263,220 4,006,410 Dec 4,016,944 4,641,432 61,519,571 63,513,321 34,171,839 10,000,000 8,000,000 6,000,000 4,000,000 • 2,000,000 0 11- IMAF P6 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec ■ 2012 ■ 2013 ■ 2014 GENERAL FUND REVENUES - Cumulative By Month 2012 2013 2014 Jan 3,668,912 4,451,264 4,818,553 Feb 7,875,098 8,718,900 9,588,664 Mar 12,736,856 13,615,483 14,573,366 Apr 22,125,698 23,373,766 25,290,923 May 26,958,966 28,107,174 29,864,252 Jun 31,105,206 32,275,689 34,171,839 Jul 35,741,637 36,238,128 Aug 39,315,751 40,036,788 Sep 43,565,901 44,795,448 Oct 53,239,407 54,865,479 Nov 57,502,627 58,871,889 Dec 61,519,571 63,513,321 60,000,000 40,000,000 20,000,000 0 — •� riumut I Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2012 ■ 2013 2014 PDFConvert.4358.1.FIN_Report_2nd_Qrtr_2014.docx 5 of 14 GENERAL FUND EXPENDITURE ANALYSIS Police Fire Transfers To Other Funds Information Systems Code Administration Financial Services Municipal Court Police Pension Utility Services Legal Engineering Indigent Defense Records - City Clerk Purchasing Human Resources Economic Development Planning City Hall Maintenance City Manager Gang Free Initiative City Council Intergovernmental State Examiner Urban Area Hearings Exam. Position Vacancy Savings Total General Fund GENERAL GOVERNMENT EXPENDITURES 2014 ---- Expenditures through 6/30 Amended Percent 2012 2013 2014 Budget Spent Status $11,505,648 $12,293,943 $12,956,709 $26,057,587 49.7% 4,373,731 4,816,992 5,204,337 10,167,258 51.2% 1,281,328 1,183,747 1,265,088 4,442,275 28.5% 1,064,820 1,158,164 1,478,601 2,912,612 50.8% 584,700 614,899 1,851,199 2,639,371 70.1% 705,809 742,653 754,897 1,488,836 50.7% 570,184 647,680 619,282 1,344,118 46.1% 643,700 698,456 604,553 1,343,325 45.0% 683,834 673,041 648,709 1,316,181 49.3% 523,119 589,371 639,528 1,314,323 48.7% 332,958 362,383 335,805 1,109,632 30.3% 241,363 244,522 306,569 600,500 51.1% 380,771 249,666 393,994 563,921 69.9% 243,995 266,606 279,648 549,369 50.9% 235,639 249,622 244,173 513,151 47.6% 0 297,992 290,283 486,733 59.6% 290,114 284,919 212,554 458,481 46.4% 201,109 225,552 282,466 407,885 69.3% 187,936 210,841 187,406 372,684 50.3% 0 0 113,870 333,105 34.2% 134,147 161,524 170,051 282,075 60.3% 155,213 178,593 162,429 244,031 66.6% 2,884 6,019 0 110,000 0.0% 15,429 18,592 8,386 31,000 27.1% 0 0 (950,000) 0.0% 24,358,431 26,175,777 29,010,537 58,138,453 49.9% Parks & Recreation Fund 1,902,372 2,058,175 2,120,567 4,412,448 48.1% Street & Traffic Ops. 2,730,221 2,500,636 2,596,019 4,786,409 54.2% Total General Government $28,991,024 $30,734,588 $33,727,123 $67,337,310 50.1% Total General Government Fund Expenditures -0.1% Above 50% Note: The one-time purchase of the Tiger Oil properties was completed in the first added $1.1 million to the normal operations. Without this one-time expenditure, a are slightly less than 50% of the annual budget. PDFConvert.4358.1.FIN_Report_2nd_Qrtr_2014. docx NORMAL NORMAL NORMAL NORMAL NORMAL NORMAL NORMAL NORMAL NORMAL NORMAL NORMAL NORMAL NORMAL NORMAL NORMAL NORMAL NORMAL NORMAL NORMAL NORMAL NORMAL NORMAL NORMAL NORMAL NORMAL NORMAL NORMAL NORMAL NORMAL quarter, which ctual expenditures 6 of 14 SIGNIFICANT EXPENDITURE VARIANCES Normal-Over/under 50% in second quarter, yet comparable to prior years—payment timing variance • Transfers to Other Funds - This budget includes $2 million for the street renovation project. Since bonds were issued in May, there are sufficient project funds at the end of the second quarter. When the bond proceeds are depleted, the transfer from General Fund will be made to the complete the project. This is a timing variance. • Code Administration - Because the purchase of the Tiger Oil properties was for the purpose of environmental clean-up, the appropriation for the $1.1 million purchase was entered in the Code Administration budget. This purchase was completed at the end of March. If this transaction is pulled out for comparison's sake, actual expenditures are 41.5% of budget, with the savings related to position vacancies. • Engineering - The 2015 budget included the transfer of Traffic Engineering from the Streets Fund into General Fund, which was to be done in conjunction with the street break ordinance. Also, there are several vacancies in this Division. These combine so that this operation is about 20% below the mid -year target of 50%. Because this also reduces the "Charges for Services" revenue category, since much of the engineering division's time is charged out to active projects, this operating unit is still receiving a "Normal" classification. • Records - Prior year election costs of $208,000 were paid in the first quarter. • City Hall Maintenance - Annual transfer to Risk Management Fund to pay for property insurance is made in the first quarter - $115,000. • Gang Free Initiative - This program was previously included in the Police budget. The new program manager position was being recruited during the first half of the year, but now that the manager is on board, spending levels will increase. • City Council - Annual Association of Washington Cities (AWC) dues of $63,000 are paid in the first quarter. • State Examiner - The annual audit does not get under way until the 2nd quarter of the year. • Street and Traffic Operations - There was a snow event in the 1st quarter that required more than average overtime and outside contractors to plow. Position Vacancy Savings - Shown for fund total purposes only - no "actual" will be charged here. PDFConvert.4358.1.FIN_Report_2nd_Qrtr_2014.docx 7 of 14 OTHER FUNDS ANALYSIS Operating/Enterprise Funds Capital Funds Reserve, Trust & Agency Funds Bond Redemption Funds Total Revenue Beginning Fund Balance Total Resources Operating/Enterprise Funds Capital Funds Reserve, Trust & Agency Funds Bond Redemption Funds Total Expenditures OTHER FUNDS REVENUES 2014 -------- Revenues through 6/30 -------- Amended Percent 2012 2013 2014 Budget Spent Status $32,420,205 $31,622,328 $31,659,984 $64,649,505 49.0% 6,525,831 12,418,028 28,625,795 56,205,847 50.9% 9,559,856 10,172,705 9,134,039 15,788,209 57.9% 2,966,778 2,666,875 2,422,849 6,955,727 34.8% 51,472,670 56,879,936 71,842,667 143,599,288 50.0% 44,858,285 47,394,784 51,645,155 51,645,155 96,330,955 104,274,720 123,487,822 195,244,443 63.2% OTHER FUNDS EXPENDITURES NORMAL NORMAL NORMAL NORMAL NORMAL NORMAL 2014 ---- Expenditure through 6/30 Amended Percent 2012 2013 2014 Budget Spent Status $31,891,944 $30,010,678 $30,119,162 $67,837,845 44.4% 8,402,255 12,363,865 16,415,920 64,889,845 25.3% 7,997,056 7,270,808 8,756,243 16,838,070 52.0% 1,686,202 1,523,925 1,566,850 7,113,635 22.0% 49,977,457 51,169,276 56,858,175 156,679,395 36.3% NORMAL NORMAL NORMAL NORMAL NORMAL First quarter results are performing as expected. Most variances at this time of the year are related to timing, which is why they are getting a Normal status. Most Operating/Enterprise Funds are close to the 50% mark for both revenue and expenditures at June 30. Significant variances are related to timing (i.e. Irrigation operating fund pays all of its ditch charges to outside irrigation companies in the first half of the year, so it is showing 56.9% spent—this is not unusual, and the budget is not in jeopardy to be overspent by year end.) Fund balances are within expected levels at this time of the year for all of these funds. Capital Fund budgets include the full project, and are not expected to be 100% completed in the current year. The $14.7 million bond for major Street grind and overlay projects was received in May, but the projects were just getting started, so the revenue and ending balance reflects this. Transit's purchase of buses used fund balance until the grant reimbursement arrives. A listing of the top ten budgeted projects and their first quarter expenses follow. Reserve Funds are ahead in revenue during the first part of the year because the full year of "premiums" to Risk Management and YAKCORPS allocations are paid in the 1St half of the year. Expenses are up primarily because the Medical Insurance Fund included a major claim (i.e. over PDFConvert.4358.1.FIN_Report_2nd_Qrtr_2014.docx 8 of 14 $250,000) in this time frame. This claim has hit the stop loss reimbursement level, so this claim will not be incurring additional costs to the City in 2014. The Medical Insurance fund is also experiencing several mid-size claims, so it has used fund balance. We have been reviewing cost containment options with the insurance consultant. The rates will need to be increased for the 2015 budget to cover the costs of the program and rebuild the reserves that are currently being used. The remaining employee benefit related funds are all doing well in 2014, and at this point in time, we anticipate no rate increases in 2015 for unemployment and workers' compensation funds. Risk management continues to have challenges, this fund will require additional "premiums" from the operating funds in 2015. Revenues in Bond Redemption Funds are deposited/transferred ratably throughout the year, but mainly interest payments are made in the first half of the year - the bulk of debt service principal payments are made in the last quarter. PDFConvert.4358.1.FIN_Report_2nd_Qrtr_2014.docx 9 of 14 TOP 10 CAPITAL PROJECTS Project Number/Description 2379 Streets Capital Preservation 2376 Airport -Alpha Taxiway Construction 1818 Railroad Grade Separation Martin Luther King Blvd Total 2014 Actual 2014 Dept Budget Expended Funding Source ST $16,500,000 $2,014,154 General Obligation Bond AIR 11,162,885 299,269 FAA Grant Passenger Facility Charges ST 4,898,000 3,292,346 State & Federal Grants Public Works Trust Fund Loan 2308 Wastewater Facility Improvement WW 2259 Water Treatment Plant Lagoons 2365 Beech St Interceptor Phase III 4,700,000 0 Debt Proceeds, Contributions Charges for Services W 3,063,938 2,848,766 Drinking Water State Revolving Fund Loan 0 Charges for Services 117,018 Wastewater Capital Reserves 68,151 Charges for Services TR 1,300,000 1,288,440 Transit Sales Tax ST 1,200,000 26,766 Grant WW 2,000,000 1,800,000 W 1,500,000 2267 WW NPDES/TMDL Dschrg/Load WW Riparian outflow modification 2335 Modifications to Water Treatment Plant Intake Transit Bus Replacement 2340 N 1st St Revitalization Phase I Dept. Legend: AIR - Airport ST - Street Improvement TR - Transit WW - Wastewater Capital W - Water Capital Expected Completion FY 2014 FY 2015 FY 2014 FY 2014/15 FY 2014 FY 2014/15 FY 2014/15 FY 2014 FY 2014 FY2015/16 PDFConvert.4358.1.FIN_Report_2nd_Qrtr_2014.docx 10 of 14 EXHIBITS Exhibit I OTHER OPERATING/ENTERPRISE FUNDS Actual Revenue ---Appropriations Ending Beg Bal Amended Actual % Amended Actual % Balance Fund 1/1/2014 Budget Revenue Rec'd Budget Exp Exp'd 6/30/2014 Economic Development $812,218 $258,000 $131,792 51.1% $456,622 $152,570 33.4% $791,440 Neighborhood Development 191,131 1,764,163 548,763 31.1% 1,766,938 660,658 37.4% 79,236 Community Relations 550,233 551,600 294,489 53.4% 601,850 279,929 46.5% 564,793 Cemetery 54,049 264,950 99,009 37.4% 278,900 132,482 47.5% 20,576 Emergency Services 156,188 1,337,026 753,700 56.4% 1,339,282 536,798 40.1% 373,090 Public Safety Communication 677,659 3,019,937 1,450,757 48.0% 3,218,239 1,350,261 42.0% 778,155 Police Grants 256,184 484,000 98,160 20.3% 469,024 166,131 35.4% 188,213 P.B.I.A. (Parking & Bus Impr) 37,680 235,170 86,449 36.8% 244,358 110,850 45.4% 13,279 Trolley 7,150 154,926 25,455 16.4% 157,809 805 0.5% 31,800 Front Street Bus Impr Area 5,675 3,335 1,918 57.5% 9,000 1,500 16.7% 6,093 Cony Center (Tourist Promo) 479,522 1,548,250 647,810 41.8% 1,483,667 729,655 49.2% 397,677 Capitol Theatre 57,158 297,250 145,078 48.8% 342,020 188,269 55.0% 13,967 PFD- Convention Center 261,465 755,750 378,360 50.1% 645,000 317,878 49.3% 321,947 Tourism Promotion Area 73,324 687,000 251,541 36.6% 687,000 198,373 28.9% 126,492 PFD- Capitol Theatre 104,222 575,500 286,289 49.7% 531,000 264,878 49.9% 125,633 Airport Operating 66,532 993,625 505,986 50.9% 1,037,370 516,765 49.8% 55,753 Stormwater Operating Fund 1,463,183 2,165,000 1,595,531 73.7% 2,325,519 916,870 39.4% 2,141,844 Transit 606,448 7,660,917 3,747,480 48.9% 8,240,033 3,728,343 45.2% 625,585 Refuse 370,478 5,586,000 2,837,819 50.8% 5,670,633 2,841,153 50.1% 367,144 Wastewater Operating 2,011,413 19,958,357 11,180,999 56.0% 20,213,432 9,666,682 47.8% 3,525,730 Water Operating 2,959,877 7,997,500 3,862,029 48.3% 9,022,649 4,649,060 51.5% 2,172,846 Irrigation 939,053 1,766,100 961,669 54.5% 2,063,884 1,174,517 56.9% 726,205 Equipment Rental 4,120,677 5,319,711 1,121,802 21.1% 5,671,800 950,773 16.8% 4,291,706 Environmental 524,232 150,000 88,467 59.0% 192,950 25,642 13.3% 587,057 Public Works Admin. 514,760 1,115,438 558,632 50.1% 1,168,866 558,320 47.8% 515,072 Total Other Operating Funds $17,300,511 $64,649,505 $31,659,984 49.0% $67,837,845 $30,119,162 44.4% $18,841,333 PDFConvert.4358.1.FIN_Report_2nd_Qrtr_2014.docx 11 of 14 Fund Exhibit II CAPITAL IMPROVEMENT FUNDS Actual Revenue Appropriations Ending Beg Bal Amended Actual % Amended Actual % Balance 1/1/2014 Budget Revenue Rec'd Budget Exp Exp'd 6/30/2014 Arterial Street $2,169,408 $3,823,975 $1,748,698 45.7% $5,106,566 $1,321,157 25.9% $2,596,949 Central Bus District Capital 163,264 22,400 62,680 n/a 91,000 27,334 30.0% 198,610 Capitol Theatre Construction 72,546 71,927 0 n/a 140,000 0 n/a 72,546 Yakima Redevelopment Area 1,207,557 2,850,000 1,093,589 38.4% 2,473,235 165,231 6.7% 2,135,915 Parks and Recreation Capital 239,590 0 0 n/a 100,000 1,077 1.1% 238,513 Fire Capital 1,116,489 134,500 22,056 16.4% 296,459 63,994 21.6% 1,074,551 Law and Justice Capital 940,905 382,886 178,050 46.5% 750,636 329,325 43.9% 789,630 Public Works Trust Constr 519,049 676,306 351,685 52.0% 732,773 508,190 69.4% 362,544 REET 2 Capital 585,060 592,000 351,685 59.4% 772,787 128,411 16.6% 808,334 Street Capital 0 16,500,000 14,813,073 89.8% 16,500,000 2,125,544 12.9% 12,687,529 Transit Capital Reserve 2,455,220 1,268,507 52,464 4.1% 1,749,000 1,295,174 74.1% 1,212,510 Convention Center Cap Impr 631,396 260,500 130,000 49.9% 360,000 73,656 20.5% 687,740 Reserve for Capital Impr 3,883,363 4,004,489 3,424,084 85.5% 4,948,000 3,620,013 73.2% 3,687,434 Airport Capital 581,655 10,666,597 517,956 4.9% 11,162,885 1,004,222 9.0% 95,389 Stormwater Capital Fund 1,360,734 444,000 206,888 46.6% 790,000 2,804 0.4% 1,564,818 Wastewater Capital 3,452,383 10,501,900 1,735,150 16.5% 12,975,000 1,726,759 13.3% 3,460,774 Domestic Water Improvement 4,365,386 2,264,800 3,050,929 134.7% 4,320,000 3,665,794 84.9% 3,750,521 Irrigation System Impr 504,332 1,741,060 886,808 50.9% 1,621,504 357,235 22.0% 1,033,905 Total Capital Impr Funds $24,248,337 $56,205,847 $28,625,795 50.9% $64,889,845 $16,415,920 25.3% $36,458,212 PDFConvert.4358.1.FIN_Report_2nd_Qrtr_2014.docx 12 of 14 Fund Exhibit III RESERVE AND OTHER FUNDS Actual Revenue Appropriations --- Ending Beg Bal Amended Actual °/O Amended Actual °/O Balance 1/1/2014 Budget Revenue Recd Budget Exp Exp'd 6/30/2014 Employee Benefit Reserves Unemployment Comp Res $394,723 $177,000 $97,171 54.9% $286,582 $91,822 32.0% $400,072 Employees Health Ben Res 3,299,663 9,158,200 4,387,932 47.9% 9,867,703 5,442,839 55.2% 2,244,756 Worker's Compensation Res 1,070,111 1,033,000 529,008 51.2% 1,258,630 540,284 42.9% 1,058,835 Wellness/EAP 179,929 175,000 0 0.0% 171,600 56,210 32.8% 123,719 Firemens' Relief and Pension 941,110 1,259,338 726,304 57.7% 1,259,308 655,176 52.0% 1,012,238 Total Employee Ben Reserve $5,885,536 $11,802,538 $5,740,415 48.6% $12,843,823 $6,786,331 52.8% $4,839,620 Operating Reserves Capitol Theatre Reserve 180,495 500 0 0.0% 71,927 0 0.0% 180,495 Risk Management Reserve 820,160 3,360,000 2,841,239 84.6% 3,299,649 1,786,125 54.1% 1,875,274 Total Operating Reserve $1,000,655 $3,360,500 $2,841,239 84.5% $3,371,576 $1,786,125 53.0% $2,055,769 Trust and Agency Funds Cemetery Trust Agency Fund-YAKCORPS Total Other Funds $622,896 $14,500 $4,002 27.6% $12,000 $0 0.0% $626,898 326,211 610,671 548,383 89.8% 610,671 183,787 30.1% 690,807 $949,107 $625,171 $552,385 88.4% $622,671 $183,787 29.5% $1,317,705 PDFConvert.4358.1.FIN_Report_2nd_Qrtr_2014.docx 13 of 14 Fund Exhibit IV BOND REDEMPTIONS FUNDS Actual Revenue Appropriations Ending Beg Bal Amended Actual % Amended Actual % Balance 1/1/2014 Budget Revenue Rec'd Budget Exp Exp'd 6/30/2014 GO Bond Redemption LID Guaranty $25,214 $50 $0 0.0% $0 $0 n/a $25,214 2002 GO Convention Center 159,444 1,016,422 509,028 50.1% 1,015,650 540,475 53.2% 127,997 2005 GO Various Bonds 9,026 2,986,989 805,090 27.0% 2,987,284 608,515 20.4% 205,601 1995 GO Street, Parks & Fire 186,675 107,230 76,839 71.7% 294,975 4,998 1.7% 258,516 1996 GO LTD- Cony Center 65,655 428,750 167,280 39.0% 425,940 42,970 10.1% 189,965 LID Debt Service Control 54,681 270,000 84,117 31.2% 245,000 0 0.0% 138,798 Total G.O. Bond Redemption $500,695 $4,809,441 $1,642,354 34.1% $4,968,849 $1,196,958 24.1% $946,091 Water/Sewer Revenue Bond Redemption 1997 Water Rev Bond Res $271,407 $400 $0 0.0% $0 $0 n/a $271,407 1996 Revenue Bond Reserve 148,463 700 0 0.0% 0 0 n/a 148,463 Water/Sewer Revenue Bonds 114,528 0 0 n/a 0 0 n/a 114,528 1997 Water Revenue Bonds 6,941 240,525 120,250 50.0% 240,500 22,750 9.5% 104,441 2008 Water/Sewer Rev Bond 2 415,813 207,907 50.0% 415,813 90,406 21.7% 117,503 Water/Sewer Rev Bond Res 973,700 1,000 0 0.0% 0 0 n/a 973,700 2003 Irrigation Bond Red 35,437 321,504 160,752 50.0% 322,129 96,064 29.8% 100,125 2003 Wastewater Bond Red 965 1,166,344 291,586 25.0% 1,166,344 160,672 13.8% 131,879 2003 Sewer Rev Bond Res 208,871 0 0 n/a 0 0 n/a 208,871 Total W/S Rev Bond Red $1,760,314 $2,146,286 $780,495 36.4% $2,144,786 $369,892 17.2% $2,170,917 PDFConvert.4358.1.FIN_Report_2nd_Qrtr_2014.docx 14 of 14