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HomeMy WebLinkAbout05/19/2009 00 Agenda and Packet ii David Edier, Mayor f \ t. • Micah Cawley, Assistant Mayor DUI ) , Yakima Maureen Adkison ; �� ® �+ Kathy Coffey 7 1 , ,,f City Council Rick EnSe f)R�tkATF K` y F ' genda Rill Lover I29 N. 2nd Street,Yakima,WA. 98901 Sonia Rodriguez Phone: (509) 575 -6000 • Fax (509) 576 -6614 City Manager Email: ccouncil @ci.yakima.wa.us • www.ci.yakima.wa.us Richard A. Zais, Jr. Anyone wishing to address the Council, please fill out the form found on the tables and give it to the City Clerk YAKIMA CITY COUNCIL SPECIAL MEETING — STUDY SESSION MAY 19, 2009 8 :00 -9 :30 A.M. COUNCIL CHAMBERS — YAKIMA CITY HALL 1. Roll CaII III City of Yakima's budgeting process 3. Audience comments (9:15 — 9:30 a.m.) 4. Adjournment to Executive Session at 5 :00 p.m. in the Council Chambers to discuss Pending Litigation • • Yakima Mktg u�ameMom� City of Yakima Vision Statement: To create a culturally diverse, economically vibrant, safe, and strong Yakima community. 1 III I' Adopted March 2008 1994 4110 MEMORANDUM May 15, 2009 To: The Honorable Mayor and City Council From: Dick Zais, City Manager Rita DeBord, Finance Director Cindy Epperson, Deputy Director of Accounting & Budgeting Re: 2010 Budget Development Study Session on Yakima's Budget Priorities Background As a result of discussions around developing /communicating the City's budget in accordance with Council's Strategic Priorities, City Council invited Yakima County Commissioner Mike Leita and Yakima County Budget Director Craig Warner to present an overview of the County's budget development policies and procedures at a Study Session held on March 31, 2009 (study session materials attached). From that Study Session, Council called a Special Meeting -Study Session for April 14, 2009; at which time Council approved changing to the County's budget development process. Subsequent to that meeting, City Finance Director Rita DeBord outlined issues that needed to be addressed in order to implement the new budget directive. Current Status The City's budget staff then began to work on these items, and has accomplished the following: ➢ Met with representatives of the State Auditor's Office to discuss the methodology and practices of the budget. Although, the overall direction was that much of the methodology is at management's discretion, they stated that all filled full -time positions should be fully budgeted unless there was an announced resignation, termination or retirement. ➢ Met with County Budget Director Craig Warner to discuss the practical application of the County Budget policies. (A draft side -by side comparison of the City and County budget development processes is attached, as well as the City's 2009 Budget Guidelines issued by the budget team and an excerpt from the 2009 Budget Forecast that explain the 2009 budget development.) There were many similarities in the 111 budget development processes, and the differences generally existed Cje Transmittal of 509 bud Study Session (3).doc Page 1 of 2 because of the different organizational /political structure of the two entities. ➢ Started development of a chart (i.e. visual summary) of General Government activities by designating existing City "service units" or cost centers to each of the Council's Strategic Priorities. (A draft is attached.) At this point, the chart is at the lowest level of program segregation that exists in our current budget system, and is therefore basically another way to view the total General Government budget. Any additional breakdown of costs will require significant changes in the budget system. It should be noted that staff has made assumptions in allocating service units to strategic priorities — Council may wish to review /reorder this allocation. As City staff was developing the requested information, Council was also reviewing the decision to adopt the County's budget policies and procedures. At their May 5, 2009 meeting, Council rescinded that action, and requested this Study Session on budget development. Future Direction Assuming Council may wish to proceed with a City of Yakima budget priorities model, the budget staff is requesting Council direction on the following: ➢ Development of formal budget policies, methodologies and practices (refer to the City /County Budget Comparison) ➢ Affirm and /or modify the allocation of service units within the Strategic Priorities (refer to General Government Summary by Priority) ➢ Determine timing and at what level Council wishes to set budget priorities- - o Strategic Priority level, and/or o Service Unit level within each Strategic Priority Based on these decisions, it is anticipated that the budget staff would then prepare a draft of the requested documents to be brought back for review by the Council Budget Committee, and then forwarded to the full Council for review /approval. Attachments: City /County Budget Comparison General Government Summary by Department General Government Summary by Strategic Priority An excerpt from the City's 2009 Budget Forecast 2009 Budget Guidelines Yakima County Budget Priorities (as presented at the March 31 Study Session) Cje Transmittal of 509 bud Study Session (3).doc Page 2 of 2 City — County Budget Comparison • Policies, Methodology & Practices ok �, ¢ � *:, ,�:n t * ""fit '� �. - i ' .,� - �; s �` ,, k j �... To ic k 2 9 Coi . .ener 'Fund _ .2 . lc- d 4 > 1 ,. .., 1 SA a 7 ' ' * > i# - . tic 4 ; , P s r..: ,'' ' .- 'J.�? � +u . " ' �. ` ;. .‘ .�,«T; ", r�. pf:, _. •! . aa' _ '�`la::' • Follow State Law - RCW 36.40 • Follow State Law - RCW 35.33 1) Legal Authority - • Required to use State Budgeting • Same Budget Development Accounting Reporting Systems • Per State law and City Charter, City (BARS) Manager prepares annual budget , • Per State law, County submits to Council for adoption, Commissioner prepares, adopts administers budget adopted by and administers County budget. Council. 2) Budget Development Seven stated Funding Priorities • Council Strategic Priorities (Council Framework reviews /updates annually; 6 - 2009) Four Written policies: • Budget Guidelines - Updated • General Fund Reserve annually in July by City Manager • Resource Allocation • Expenditure Guidelines: • Expenditure (Contingency) (a) Maximum dependency on • Flex Costs beginning cash balance, and (b) Minimum reserve balance ll ocation of Reserves to • County Commissioner's • General Guideline: 3.5 %, if needed "Balance" Budget; establish level annually, as • City policy established by Council needed over 20 yrs ago - maximum • 2009 - Approximately 2 % allocation of reserves 5 %. City Manager reduced to 3.5% in 2009. • Ensure reserve policy is met and • Same (Budget monitored and all available resources are adjusted during year to minimize or allocated eliminate utilization of reserves.) 4) Year -End Reserves • Policy: Minimum of 12 %; County • Policy: Minimum of 7 %; (established Commissioner's modify by Council over 20 yrs ago). annually based on need; • 2009 adopted budget - 9% (2008 • 2009 budget - 11% ending balance - 10%) 5) Purpose / Use of Flex Cost Reserve and General • Same (General Fund Reserve and Reserves Fund Reserve Contingency Fund) Reserves utilized for volatile or • 1 -time costs considered in total unpredictable expenditures; budget development / reserve unanticipated costs, one -time allocation III costs; matching for grant funds, financial planning for future • Same: Available for fiscal distress projects; cash flow; emergencies. Page 1 of 5 Rd 5 -13 -09 Budget models - 2 City — County Budget Comparison Policies, Methodology & Practices is AY) 5'Y � . Resources . _ F . County'- aGeneral Fund, C>< General Eund „ ;. _ - , ,. _ � � . : r _ 4WD 6) Position Budgeting Filled 100% Same (recommended by State Auditor) Vacant 100% (at lower step) Same Un- announced mid -year 100% Same vacancy Announced vacancy / 100% Same retirement Cash outs Not budgeted - position left 100% (if known); unfilled until financial impact is offset 6 -12 mo vacancy All vacancies reviewed for Reviewed for replacement replacement or deletion - If a deletion, and /or temporary freeze. position is not budgeted, the If replaced - budget 100 %. position is deleted. Overtime Follow Labor contracts, FLSA - Same • historical review of use Hiring Mechanism/Timeline Non Civil Service: 6 -8 wk Civil Service -16 wk (plus) typical 7) Non Personnel Expenses Professional Services • Each dept sets budget $$ • Varies; City Manager sets based Supplies • Commissioners set Non- on dept. needs. * Travel/Training* Departmental budget levels (i.e. COG, Clean Air, debt, etc.) *Note: travel and training budget *Many professional has been frozen for many years. certifications require continuing education 8) Capital Outlay Minimum amount included in Same (Note: only about $0.5 M or General Fund. (City & County approx. 1% of general fund total.) departments the same except for sheriff.) Vehicles - replacement costs Vehicles - Police and Fire included in Equipment Rental Replacement from Capital fund Fund use charges - Includes Other vehicles - same as County Sheriff, Assessor, WSU Extension, (i.e. Equipment Rental replacement etc. charges for Streets, Codes, etc.) Page 2 of 5 Rd 5 -13 -09 Budget models - 2 City — County Budget Comparison • Policies, Methodology & Practices u -e SWIM "�":".. � Sys y= ' i +: ' , x 4 a�. < �^ .. .�c ��::' °d+. � m�,� ��w ,� ., p �� �, i � ti < � xz. SW i ,by �" ' i a Resources County Gene "raI Fund City General..Fund, , ,, :4 � , � .� �a e� r'�'M.. .1��:` ��:�.�,. `..'. ..,, ','""a�._ „ x, �.rJ„���4� & �`�.�...�"iV � !",�c..x ���� 9) Contingency Allows departments discretion to Contingency Fund: allocations to resolve budgetary issues within Fund recommended by City allocated resources. See Item 14) b) Manager & authorized by Council below. annually. 10) Resource Allocations • Known impacts budgeted •Same • Commissioners , at their • Fixed, mandated and contractual discretion, allocate available costs (i.e.: Non - Discretionary resources to seven priority expenditures) estimated by categories: public safety; Budget staff - for consistency Economic Development; Gov- across all operating funds (e.g. ernmental Services; Health/ labor settlements, utility and Human Services; Law/Justice; postal rate adjustments, • Public Services and Quality of insurance and self insurance Life). premiums, etc.). • Then, Elected officials Then, Budget team analyzes total (Department Heads) negotiate estimated revenues and among themselves for their preliminary budgeted individual department budgets - expenditures to determine if "out within the total resources allocated of balance” condition exists, and - by the Commissioners for each working with Dept. Heads - Priority. Allows officials to resolve adjusts preliminary dept. budgets bottle necks in system (ie Law & as needed, in accordance with Justice System) Council's six Strategic Priorities. 12) Primary Revenues: Percentage of Total Gen.Fund Rev. Percentage of Total Gen.Fund Rev Sales Tax 20% 32% Property Tax 40% 24% Utility Tax No utility taxes 17% Page 3 of 5 Rd 5 -13 -09 Budget models - 2 City — County Budget Comparison Policies, Methodology & Practices • ` t. R`z i r i R Ls F m r s tit a R esources :Coup eical Fun G i fy . —ener Eund * A t 13) Dedicated General fund • Identify and budget at time of • Same (dedicated City revenues Revenues: budget preparation; mid- year include: grants, gambling taxes, appropriations for new grant SRO reimbursement, awards State/Federal Intergovernmental Revenues) • Expenditures funded by Criminal •Expenditures funded by Criminal Justice Sales Tax budgeted in a Justice Sales Tax budgeted in Special Revenue Fund separate account within each applicable service unit 14) Budget Administration: a) General Commissioners have responsibility City Manager has responsibility to to administer budget. administer budget. b) Day-to-day budget •General Fund Expenditure Policy: • Legal level of control is Fund. Y Y g xP Y g management •Each dept. may adjust • City Manager may transfer expenditures for Salary/ appropriations within a fund Benefits; Supplies; Other (typically reserved for major Services /Charges, and changes): transfers between funds Contingency / Capital require Council authorization. Expenditures by +/- 5% at their • City Manager holds Dept . Heads discretion. responsible to stay within their •Contingency / Capital budget allocation. expenditure category is •Department Directors must established at 1% of the manage expenditure increases / respective dept's. total decreases during year within allocated resources (excluding allocated budget (e.g.: savings grants, fixed and flex costs). from a vacancy could be used for • Rollover of unused overtime, temp. services, Contingency/ Capital recruitment costs, to cover Expenditure funds is allowed, unexpected cost over -runs in up to 5% of total dept. other areas, etc.) allocated resources (same exclusions as noted above.) Page 4 of 5 Rd 5 -13 -09 Budget models - 2 • City — County Budget Comparison Policies, Methodology & Practices 14) Budget Administration: c) Mid -year budget • When Mid -year adjustments are • When Mid -year adjustments are reductions necessary, other elected officials necessary, City Manager provides (Dept. Heads) responsible to each Dept. Head with budget operate within resources reduction targets, based on allocated by Commissioners. Council Strategic Priorities; (i.e.: not "across the board" reductions). Typical target reductions range from 1% - 5 %. If severe reductions are required, council is engaged. r Page 5 of 5 Rd 5 -13 -09 Budget models - 2 • City of Yakima - 2009 Budget General Government Summary by Department City Manager Public Works $3,852,576 6.3% Municipal Court $10,452,376 $1,346,304 17.0% 2.2% Finance $9,850,458 16.1% • Fire $8,909,315 14.6% CED $4,367,306 7.1% Police $22,447,888 36.7% Amended Budget $61,226,223 • City of Yakima - 2009 Budget General Government Department and Service Unit Breakdown • City Municipal Public Finance CED Police Fire Manager Court Works , , , , 1 , City Criminal Justice State Hearings Criminal Justice Auxiliary Americorps Council Tax Examiner Examiner Tax 1 , 1 1 1 1 City Municipal GREAT Parks Finance Planning Suppression Management Court Program Maintenance 1 1 1 1 , 1 , City Clerk Police Pension Community Probation Administration Investigation Investigation Legislation (Exempt) Recreation 1 1 1 1 1 , City Clerk Criminal Justice Preventative Licensing Training Fisher Golf Records Tax Patrol 1 1 1 , , 1 Police Information Criminal Justice Support Svcs Administration Aquatics Recruiting Systems Tax Records 1 1 1 , , Dangerous Bldg Harmon HR Personnel Copy Center Detention Rep & Demo Center 1 1 1 1 Police & Fire Intergovern- Special Civil Service mental Codes Operations Sports 1 1 , 1 Charter Animal Administration Parks District Court Civil Service Control / Contracts Administrate 1 1 1 , , Diversity Utility Services Subsidy / Engineering Parking Promotion (Exempt) Tahoma / Debt Criminal Justice City Hall Streets Tax Maintenance Cleaning 1 Prosecution Pedestrian & Bikeways Legal Traffic / Streets Interfund Purchasing Public Area Lighting Indigent Traffic Control Defense , Traffic Engineering Traffic & Streets Administration Snow & Ice Removal Streets Maintenan , Traffic &Streets Interfund • City of Yakima - 2009 Budget General Government Summary by Priority Exempt Other Partnerships $5,011,701 $290,426 $80,220 8.2% 0.5% Customer 0.1% Service $632,396 1.0% Quality of Life $4,923,058 8.1% Economic Development $3,449,667 5.6% Resource Public Safety Management $38,362,033 $8,474,722 62.7% 13.8% Amended Budget $61,226,223 • City of Yakima - 2009 Budget Council and Community Strategic Priorities General Government Public Resource Economic Quality Customer Strategic Safety Management Development of Life Service Partnerships Exempt Other City City City City Public Finance Finance Finance Manager Manager Manager Manager Works Municipal Finance CED Finance Finance Court Public Finance CED Police Works Public Public CED Works Works Police Fire Public Works • • • . City of Yakima - 2009 Budget General Government Priorities III 1. Maintain and Improve Public Health & Safety Public Health and Safety FTE's General Government FTE's $28,503,522 60.67% 2005A $46,982,432 2005A _ $30,814,060 61.27% 2006A _ $50,293,055 2006A $33,113,140 62.19% 2007A $53,247,496 2007A $35,688,939 62.60% 2008A $57,007,432 2008A $38,362,033 62.66% 2009B $61,226,223 2009B CJ Tax / Police Recruiting FTE's $2,554 0.01% 2005A $10,936 0.04% 2006A $11,340 0.03% 2007A $7,100 0.02% 2008A $7,500 0.02% 2009B CJ Tax / Prosecution FTE's $38,115 0.13% 2005A $102,157 0.33% 2006A 0 $102,535 0.31% 2007A $142,175 0.40% 2008A $167,864 0.44% 2009B Prosecution FTE's $555,347 1.95% 2005A $566,786 1.84% 2006A $578,786 1.75% 2007A $604,885 1.69% 2008A $681,605 1.78% 2009B Indigent Defense FTE's $0 0.00% 2005A $241,186 0.85% 2006A $360,797 1.17% 2007A $360,000 1.09% 2008A $385,000 1.08% 2009B CJ Tax / Municipal Court FTE's $79,413 0.28% 2005A $141,453 0.46% 2006A • $121,971 0.37% 2007A $172,743 0.48% 2008A $252,821 0.66% 2009B Health and Safety: Page 1 of 6 L Municipal Court FTE's $869,908 3.05% 2005A $864,404 2.81% 2006A • $950,707 2.87% 2007A $1,029,385 2.88% 2008A $1,068,483 2.79% 2009B Probation FTE's $410,693 1.44% 2005A $50,451 0.16% 2006A $48,233 0.15% 2007A $24,177 0.07% 2008A $25,000 0.07% 2009B CJ Tax / Information System FTE's $35,265 0.12% 2005A $69,877 0.23% 2006A $93,420 0.28% 2007A $121,177 0.34% 2008A $75,848 0.20% 2009B Yakima Co Emergency Mgm FTE's $40,813 0.14% 2005A $42,244 0.14% 2006A 110 $54,721 0.17% 2007A $57,212 0.16% 2008A $59,937 0.16% 2009B Clean Air Authority FTE's $12,580 0.04% 2005A $12,622 0.04% 2006A $12,622 0.04% 2007A $22,062 0.06% 2008A $22,394 0.06% 2009B Alcoholism Prevention FTE's $18,255 0.06% 2005A $17,569 0.06% 2006A $19,606 0.06% 2007A $19,418 0.05% 2008A $20,790 0.05% 2009B Citizens f /Safe Yakima Com FTE's $0 0.00% 2005A $0 0.00% 2006A • $0 0.00% 2007A $20,000 0.06% 2008A $20,000 0.05% 2009B Health and Safety: Page 2 of 6 CSC Blockwatch FTE's $0 0.00% 2005A • $0 0.00% 2006A $0 0.00% 2007A $0 0.00% 2008A $60,000 0.16% 2009B District Court FTE's $32,141 0.11% 2005A $24,122 0.08% 2006A $10,645 0.03% 2007A $3,216 0.01% 2008A $1,800 0.00% 2009B CJ Tax / Animal Control FTE's $21,732 0.08% 2005A $61,696 0.20% 2006A $66,953 0.20% 2007A $60,882 0.17% 2008A $75,025 0.20% 2009B Animal Control FTE's $217,592 0.76% 2005A $210,275 0.68% 2006A $214,209 0.65% 2007A $225,682 0.63% 2008A $240,982 0.63% 2009B Dangerous Bldg Rep & Dem FTE's $29,084 0.10% 2005A $58,470 0.19% 2006A $25,878 0.08% 2007A $22,560 0.06% 2008A $25,000 0.07% 2009B Codes Administration FTE's $883,230 3.10% 2005A $930,103 3.02% 2006A $1,028,918 3.11% 2007A $1,034,728 2.90% 2008A $1,213,524 3.16% 2009B CJ Tax / Police FTE's $283,198 0.99% 2005A • $1,030,588 3.34% 2006A $1,133,947 3.42% 2007A $1,235,395 3.46% 2008A $1,290,413 3.36% 2009B Health and Safety: Page 3 of 6 Police GREAT Program FTE's • $0 0.00% 2005A $74,909 0.24% 2006A $223,640 0.68% 2007A $170,843 0.48% 2008A $103,875 0.27% 2009B Police Investigation FTE's $2,271,188 7.97% 2005A $2,283,497 7.41% 2006A $2,333,486 7.05% 2007A $2,442,730 6.84% 2008A $2,610,490 6.80% 2009B Preventative Patrol FTE's $8,109,633 28.45% 2005A $8,741,752 28.37% 2006A $7,319,199 22.10% 2007A $8,205,509 22.99% 2008A $9,059,926 23.62% 2009B Police Support Sys / Records FTE's $1,451,987 5.09% 2005A $1,433,128 4.65% 2006A $1,521,463 4.59% 2007A $1,577,253 4.42% 2008A $1,651,485 4.30% 2009B Detention / Jail FTE's $1,209,898 4.24% 2005A $1,272,006 4.13% 2006A $1,337,092 4.04% 2007A $1,404,345 3.93% 2008A $1,522,698 3.97% 2009B Police Special Operations FTE's $0 0.00% 2005A $84,253 0.27% 2006A $2,200,775 6.65% 2007A $2,347,557 6.58% 2008A $2,760,992 7.20% 2009B Admin/Outside Jail Contract FTE's $2,553,091 8.96% 2005A $2,555,388 8.29% 2006A $3,080,305 9.30% 2007A $3,426,688 9.60% 2008A $3,344,596 8.72% 2009B Health and Safety: Page 4 of 6 Fire Auxiliary FTE's $5,501 0.02% 2005A • $6,135 0.02% 2006A $7,754 0.02% 2007A $11,266 0.03% 2008A $10,900 0.03% 2009B Fire Suppression FTE's $6,395,962 22.44% 2005A $6,605,052 21.44% 2006A $6,802,461 20.54% 2007A $7,281,867 20.40% 2008A $7,713,985 20.11% 200913 Fire Investigation FTE's $132,894 0.47% 2005A $178,629 0.58% 2006A $151,612 0.46% 2007A $160,795 0.45% 2008A $150,762 0.39% 2009B Fire Training FTE's 0 $282,892 0.99% 2005A $339,929 1.10% 2006A $266,230 0.80% 2007A $297,422 0.83% 2008A $317,402 0.83% 2009B Fire Administration FTE's $511,538 1.79% 2005A $546,678 1.77% 2006A $713,316 2.15% 2007A $685,034 1.92% 2008A $716,266 1.87% 2009B Public Area Lighting FTE's $311,438 1.09% 2005A $359,082 1.17% 2006A $348,434 1.05% 2007A $406,501 1.14% 2008A $421,481 1.10% 2009B Traffic Control FTE's $988,079 3.47% 2005A • $997,602 3.24% 2006A $1,031,165 3.11% 2007A $1,094,371 3.07% 2008A $1,238,906 3.23% 2009B Health and Safety: Page 5 of 6 Traffic Engineering FTE's - $310,582 1.09% 2005A $329,773 1.07% 2006A • $333,781 1.01% 2007A $348,172 0.98% 2008A $421,547 1.10% 2009B Traffic Administration FTE's $168,415 0.59% 2005A $176,835 0.57% 2006A $197,551 0.60% 2007A $202,292 0.57% 2008A $206,997 0.54% 2009B Snow & Ice Removal FTE's $270,504 0.95% 2005A $394,473 1.28% 2006A $409,588 1.24% 2007A $463,497 1.30% 2008A $415,739 1.08% 2009B 0 III Health and Safety: Page 6 of 6 City of Yakima - 2009 Budget General Government Priorities • 2. Efficiently Manage Pub Res & Ensure Fiscal Stability Manage Resources FTE's General Government FTE's $6,864,031 14.61% 2005A $46,982,432 2005A $6,750,142 13.42% 2006A _ $50,293,055 2006A $7,147,284 13.42% 2007A $53,247,496 2007A $7,514,875 13.18% 2008A $57,007,432 2008A $8,474,722 13.84% 2009B $61,226,223 2009B City Council FTE's $163,556 2.38% 2005A $177,503 2.63% 2006A $182,758 2.56% 2007A $204,586 2.72% 2008A $213,540 2.52% 2009B City Management FTE's $540,441 7.87% 2005A $459,586 6.81% 2006A • $450,429 6.30% 2007A $483,312 6.43% 2008A $521,307 6.15% 2009B Human Resources FTE's $192,754 2.81% 2005A $162,050 2.40% 2006A $149,891 2.10% 2007A $147,225 2.06% 2008A $175,554 2.34% 2009B Police /Fire Civil Service FTE's $120,778 1.76% 2005A $123,740 1.83% 2006A $127,719 1.79% 2007A $136,681 1.82% 2008A $150,849 1.78% 2009B Charter Civil Service FTE's $122,237 1.78% 2005A $118,857 1.76% 2006A • $121,179 1.70% 2007A $139,128 1.85% 2008A $159,137 1.88% 2009B Resources and Stability: Page 1 of 3 Legal FTE's $608,260 8.86% 2005A $552,848 8.19% 2006A • $626,955 8.77% 2007A $552,586 7.35% 2008A $610,326 7.20% 2009B Purchasing FTE's $205,918 3.00% 2005A $218,162 3.23% 2006A $234,303 3.28% 2007A $258,089 3.43% 2008A $329,881 3.89% 2009B State Examiner FTE's $96,772 1.41% 2005A $90,968 1.35% 2006A $95,467 1.34% 2007A $96,297 1.28% 2008A $103,000 1.22% 2009B Finance FTE's $1,080,240 15.74% 2005A 4110 $1,168,274 17.31% 2006A $1,219,856 17.07% 2007A $1,440,634 19.17% 2008A $1,540,878 18.18% 2009B Information Systems FTE's $2,111,763 30.77% 2005A $2,081,073 30.83% 2006A $2,160,770 30.23% 2007A $2,218,664 29.52% 2008A $2,563,772 30.25% 2009B Licensing FTE's $186,028 2.71% 2005A $201,091 2.98% 2006A $194,173 2.72% 2007A $202,786 2.70% 2008A $229,324 2.71% 2009B Engineering FTE's $1,069,317 15.58% 2005A $1,021,594 15.13% 2006A • $1,029,928 14.41% 2007A $1,034,701 13.77% 2008A $1,199,716 14.16% 2009B Resources and Stability: Page 2 of 3 • City Hall Maintenance FTE's $311,658 4.54% 2005A • $320,771 4.75% 2006A $395,937 5.54% 2007A $403,570 5.37% 2008A $426,178 5.03% 2009B Streets Administration FTE's $54,309 0.79% 2005A $53,625 0.79% 2006A $157,919 2.21% 2007A $196,616 2.62% 2008A $251,260 2.96% 2009B 111 • Resources and Stability: Page 3 of 3 • City of Yakima - 2009 Budget General Government Priorities 3. Promote Economic Development and Diversification Economic Development FTE's General Government FTE's $2,519,466 5.36% 2005A $46,982,432 2005A $2,662,396 5.29% 2006A $50,293,055 2006A $2,843,771 5.34% 2007A $53,247,496 2007A $3,110,419 5.46% 2008A $57,007,432 2008A $3,449,667 5.63% 2009B $61,226,223 2009B YCDA FTE's $19,913 0.79% 2005A $19,913 0.75% 2006A $19,913 0.70% 2007A $20,000 0.64% 2008A $30,000 0.87% 2009B Chambers of Commerce FTE's $5,900 0.23% 2005A $11,800 0.44% 2006A $11,800 0.41% 2007A $11,800 0.38% 2008A $11,800 0.34% 2009B Black Rock FTE's $0 0.00% 2005A $0 0.00% 2006A $0 0.00% 2007A $12,000 0.39% 2008A $10,000 0.29% 2009B Debt Service CERB FTE's $35,601 1.41% 2005A $35,601 1.34% 2006A $35,601 1.25% 2007A $35,601 1.14% 2008A $35,602 1.03% 2009B Hearing Examiner FTE's $47,092 1.87% 2005A $46,905 1.76% 2006A $60,155 2.12% 2007A $65,193 2.10% 2008A • $56,000 1.62% 2009B Development and Diversification: Page 1 of 2 • Comprehensive Planning FTE's $478,329 18.99% 2005A • $505,508 18.99% 2006A $623,670 21.93% 2007A $629,164 20.23% 2008A $670,389 19.43% 2009B Planning Administration FTE's $40,243 1.60% 2005A $63,481 2.38% 2006A $67,835 2.39% 2007A $76,174 2.45% 2008A $231,168 6.70% 2009B Parking Enforcement FTE's $110,011 4.37% 2005A $76,022 2.86% 2006A $61,125 2.15% 2007A $92,656 2.98% 2008A $103,413 3.00% 2009B Streets Maintenance FTE's $1,782,377 70.74% 2005A $1,903,166 71.48% 2006A $1,963,672 69.05% 2007A $2,167,831 69.70% 2008A $2,301,295 66.71% 2009B I • Development and Diversification: Page 2 of 2 City of Yakima - 2009 Budget , General Government Priorities 4. Preserve and Enhance Yakima's Quality of Life III Quality of Life FTE's General Government FTE's $4,071,282 8.67% 2005A $46,982,432 2005A _ $4,318,284 8.59% 2006A $50,293,055 2006A $4,531,602 8.51% 2007A $53,247,496 2007A $4,887,099 8.57% 2008A $57,007,432 2008A $4,936,058 8.06% 2009B $61,226,223 2009B Diversity Promotion FTE's $519 0.01% 2005A $419 0.01% 2006A $0 0.00% 2007A $0 0.00% 2008A $1,000 0.02% 2009B Sunfair Parade FTE's $1,000 0.02% 2005A $1,000 0.02% 2006A $1,000 0.02% 2007A $1,000 0.02% 2008A Ill $1,000 0.02% 2009B Allied Arts FTE's $5,333 0.13% 2005A $5,333 0.12% 2006A $5,333 0.12% 2007A $5,333 0.11% 2008A $5,333 0.11% 2009B RSVP FTE's $1,950 0.05% 2005A $0 0.00% 2006A $0 0.00% 2007A $0 0.00% 2008A $3,000 0.06% 2009B Yakima Symphony FTE's $0 0.00% 2005A $0 0.00% 2006A $0 0.00% 2007A III $0 0.00% 2008A $10,000 0.20% 2009B Quality of Life: Page 1 of 3 • Americorps FTE's , • $61 948 1.44% 0.64% 2006A 2005A $133,448 2.94% 2007A $150,696 3.08% 2008A $170,235 3.45% 2009B Parks Maintenance FTE's $1,308,121 32.13% 2005A $1,382,512 32.02% 2006A $1,390,119 30.68% 2007A $1,434,629 29.36% 2008A $1,512,164 30.64% 2009B Community Recreation FTE's $35,760 0.88% 2005A $86,802 2.01% 2006A $18,080 0.40% 2007A $64,910 1.33% 2008A $75,413 1.53% 2009B Fisher Golf Course FTE's III $197,877 4.86% 2005A $183,617 4.25% 2006A $194,286 4.29% 2007A $209,586 4.29% 2008A $234,181 4.74% 2009B Aquatics FTE's $622,650 15.29% 2005A _ $544,520 12.61% 2006A $496,696 10.96% 2007A $553,739 11.33% 2008A $556,720 11.28% 2009B Harmon Center FTE's $432,542 10.62% 2005A $467,143 10.82% 2006A $638,827 14.10% 2007A $654,775 13.40% 2008A $700,004 14.18% 2009B Sports FTE's $356,734 8.76% 2005A 0 $375,532 8.70% 2006A $381,791 8.43% 2007A $333,728 6.83% 2008A $389,553 7.89% 2009B Quality of Life: Page 2 of 3 Parks Administration FTE's $441,217 10.84% 2005A $460,679 10.67% 2006A II $567,568 12.52% 2007A $661,332 13.53% 2008A $592,774 12.01% 2009B Parks Miscellaneous FTE's $256,000 6.29% 2005A $293,962 6.81% 2006A $242,381 5.35% 2007A $210,865 4.31% 2008A $146,500 2.97% 2009B Street Cleaning FTE's $270,033 6.63% 2005A $301,055 6.97% 2006A $285,687 6.30% 2007A $396,403 8.11% 2008A $347,085 7.03% 2009B Pedestrian & Bikeways FTE's $115,598 2.84% 2005A III $153,742 3.56% 2006A $176,386 3.89% 2007A $210,103 4.30% 2008A $191,096 3.87% 2009B III Quality of Life: Page 3 of 3 City of Yakima - 2009 Budget General Government Priorities III 5. Provide Responsive Cust Svc & Effective Comm Customer Service - Comm FTE's General Government FTE's $440,189 0.94% 2005A $46,982,432 2005A _ $813,137 1.62% 2006A $50,293,055 2006A $535,138 1.01% 2007A $53,247,496 2007A $611,925 1.07% 2008A $57,007,432 2008A $632,396 1.03% 2009B $61,226,223 2009B City Clerks - Legislation FTE's $107,699 24.47% 2005A $183,067 22.51% 2006A $124,343 23.24% 2007A $126,062 20.60% 2008A $151,494 23.96% 2009B City Clerk - Records FTE's $170,974 38.84% 2005A $432,070 53.14% 2006A • $241,441 45.12% 2007A $283,858 46.39% 2008A $297,519 47.05% 2009B Copy Center FTE's $161,516 36.69% 2005A $198,000 24.35% 2006A $169,354 31.65% 2007A $202,005 33.01% 2008A $183,383 29.00% 2009B III Service and Communications: Page 1 of 1 City of Yakima - 2009 Budget General Government Priorities 6. Build and Utilize Strategic Partnerships Strategic Partnerships FTE's General Government FTE's $38,532 0.08% 2005A $46,982,432 2005A _ $78,225 0.16% 2006A $50,293,055 2006A $123,827 0.23% 2007A — $53,247,496 2007A $81,676 0.14% 2008A $57,007,432 2008A $80,220 0.13% 2009B $61,226,223 2009B Conf of Governments FTE's $38,532 100.00% 2005A $39,130 50.02% 2006A $42,732 34.51% 2007A $42,581 52.13% 2008A $41,125 51.27% 2009B Annexation Ramp Down FTE's $0 0.00% 2005A $39,095 49.98% 2006A $81,095 65.49% 2007A 111 $39,095 47.87% 2008A $39,095 48.73% 2009B • Strategic Partnerships: Page 1 of 1 City of Yakima - 2009 Budget General Government Priorities • 7. Exempt Exempt FTE's General Government FTE's $4,244,496 9.03% 2005A $46,982,432 2005A $4,425,148 8.80% 2006A _ $50,293,055 2006A $4,575,702 8.59% 2007A $53,247,496 2007A $4,781,159 8.39% 2008A $57,007,432 2008A $5,011,701 8.19% 2009B $61,226,223 2009B Police Pension FTE's $1,204,149 28.37% 2005A $1,235,437 27.92% 2006A $1,384,894 30.27% 2007A $1,279,173 26.75% 2008A $1,403,957 28.01% 2009B Utility Services FTE's $895,410 21.10% 2005A $958,990 21.67% 2006A $958,592 20.95% 2007A $1,034,016 21.63% 2008A $1,225,469 24.45% 2009B SunDome Debt Service FTE's $150,697 3.55% 2005A $149,173 3.37% 2006A $150,000 3.28% 2007A $150,000 3.14% 2008A $150,000 2.99% 2009B Transfers (099) FTE's $1,994,240 46.98% 2005A $2,081,548 47.04% 2006A $2,082,216 45.51% 2007A $2,317,970 48.48% 2008A $2,232,275 44.54% 2009B Exempt: Page 1 of 1 • City of Yakima - 2009 Budget General Government Priorities 8. Other III Other FTE's General Government FTE's $300,914 0.64% 2005A $46,982,432 2005A _ $431,663 0.86% 2006A _ $50,293,055 2006A $377,032 0.71% 2007A $53,247,496 2007A $331,340 0.58% 2008A $57,007,432 2008A $279,426 0.46% 2009B $61,226,223 2009B Traffic Interfund FTE's $53,731 17.86% 2005A $47,534 11.01% 2006A $59,844 15.87% 2007A $62,283 18.80% 2008A $68,484 24.51% 2009B Streets Interfund FTE's $247,183 82.14% 2005A $384,129 88.99% 2006A $317,188 84.13% 2007A $269,057 81.20% 2008A $210,942 75.49% 2009B 4 110 Other: Page 1 of 1 • 2009 BUDGET III GENERAL GOVERNMENT BUDGET The proposed 2009 General Government (taxpayer supported) budget includes the General Fund, Parks Fund and the Streets and Traffic Fund. Over 60% of these tax - supported 1 budgets are spent on public safety services including Police, Fire, Courts and support to these departments from the Information Systems, Finance, Legal, and Human Resources divisions. The proposed 2009 General Government budget reflects an increase of approximately 3.1% over the prior year despite significantly higher cost increases imposed on the budget by known and anticipated increases in public safety and related criminal justice costs, substantial private sector price increases for fuel, private utilities, health insurance, construction materials, chemicals and the like, together with negotiated labor settlements and State mandated retirement costs for employees. CITY -WIDE BUDGET The proposed 2009 total city -wide expenditure budget of $199.7 million is balanced within existing resources and reflects a modest increase of 3.9% despite considerably higher increases in costs of providing services to our citizens and the increased costs associated with major capital projects, as outlined, above and as compared to the change in the 0 Consumer Price Index as noted below. The September 2008 Consumer Price Index (CPI -W) for the Seattle- Tacoma - Bremerton area was 6.2% - well above the increase in the City's 2009 budgeted expenditures. Cost increases have outpaced the growth in existing operating revenues for several years; this has necessitated close monitoring, continual "belt tightening" and a constant search for efficiency improvements within all City depai linents. Staff has made every effort to absorb cost increases within existing budgets to the greatest extent possible. This is an on -going effort in all departments which becomes increasingly challenging each year as departmental budgets are, and have been for some time, very lean. While budgets have increased in absolute dollars, they have not kept up with the increase in the related costs associated with providing existing critical and essential core services. In 2006, the City Council became increasingly aware and concerned over this situation and adopted a 2007 Policy Issue which authorized the formation of a Council Budget Committee. Over the past two years, the Council Budget Committee has invested considerable time in reviewing the City's General Government Budget and has recently undertaken the difficult task of prioritizing the General Government services provided to our citizens in a proactive effort to be prepared to adjust budgets, and the related services, when /if this becomes necessary in order to ensure that the City continues to operate within its means. Ili Introduction: Transmittal Memo • Section I — 3 NEW STRATEGIC PRIORITIES Individual families and businesses within the City, the State and across the entire nation • are currently facing significant financial pressures and no one knows how long the current financial crisis may last. In these trying economic times, it is critical to have a common Vision and defined Strategic Priorities in order to help ensure the City's limited resources are applied to the highest priorities. The entire City Council is vested in the effort to provide the highest priority services to our citizens. As part of this effort, in March of this year, the City Council adopted revised and updated Strategic Priorities for the City; as follows: > Maintain and Improve Public Health and Safety, > Promote Economic Development and Diversification, > Build and Utilize Strategic Partnerships, > Preserve and Enhance Yakima's Quality of Life, > Efficiently Manage Public Resources and Ensure Fiscal Stability, and > Provide Responsive Customer Service and Effective Communications. The Council's Strategic Priorities form the foundation for the City's 2009 Budget. The City Manager and Department Heads utilize these Strategic Priorities as guiding principles upon which programs and services are developed, assessed and budgeted. The City's budget is a critical tool utilized by Council and staff to continually move the City closer to the Council's ultimate goal — or Vision - for the City: To create a culturally diverse, economically vibrant, safe and strong Yakima community. Strong fiscal disciplines and a steady hand to "steer our corporate ship" safely through the rough financial waters is also critical in these unprecedented and distressing financial times. The principal fiscal disciplines utilized by staff to instill the necessary monetary discipline into the City's budget are City Management's initial budget guidelines, which places limitations on the reliance on reserves, and the level of projected year -end cash balances in the General Fund. Staff has long utilized these measures when preparing the City's budget; however, due to the severe financial crisis the nation is currently experiencing and the uncertainty as to how much worse this situation may still become, or how long it may last, City Management implemented new, even more conservative, guidelines this year. In the past, the guideline for dependency on beginning cash balances (i.e.: reserves) in the General Government budget was a maximum of 5 %; this has been lowered to 4% for the 2009 budget. The minimum General Fund ending cash (reserve) balance guideline remains at not less than 7% of annual operating expenditures. • 4 — Section I • Introduction: Transmittal Memo The 2009 General Government budget contains no new taxes, no major service reductions, III and no layoffs of City personnel. Staffing levels remain very constant throughout City departments. There are no new FTE's (full time equivalents) in the General Government funds and only two additional FTE's proposed in the 911 Dispatch Center and 3 FTE's in the Utility Divisions — 2 in Storm Water and 1 in the Water Division. Although there are many needs throughout the various departments of the City, there are significantly fewer new Policy Issues in 2009 as compared to prior years as there simply is no funding available to support additional programs, services or the related budget expenditures. 2009 Policy Issues largely focus on increasing efficiencies / effectiveness of existing resources through technology improvements and re- organizations of existing staff. City departments have absorbed many cost increases in an effort to reduce the pressure on the City's budget and minimize impacts to citizens. The City continues to receive a significant fiscal benefit from outside agencies, primarily in the form of local, state and federal grants. The 2009 budget includes over $29 million in operating and capital grants and an additional $3.5 million in state shared revenues and $4.7 million in inter - governmental revenues from various contracts and services — for a total of $37.6 million. This represents a major infusion of cash, jobs and other economic stimulus to our community primarily from sources outside the City; however, this also represents revenues that may not be sustainable in the future. • Refer to the Supplemental Information Section for a complete list of the Grants and other "external" revenues. The following chart identifies how the 2009 General Government funds are allocated. III Introduction: Transmittal Memo • Section I — 5 • 2009 GENERAL GOVERNMENT BUDGET 2009 % of III Forecast Dollars in Millions Total Organizational Unit Budget 0 1 2 3 4 5 6 7 8 9 10 1 1 12 13 14 15 16 17 18 19 20 21 22 Budget Police $22,607,681 37.1% Fire 8,916,125 1 14.6% Streets & Traffic Op. 6,045,680 9.9% Parks 4,377,598 7.2% Information Systems 2,482,128 1 4.1% Transfers (I) 2,232,275 Q 3.7% Code Administration 1,782,792 MI 2.9% Financial Services 1,516,266 - •Personnel 2.5% Legal 1,455,786 O Non- Personnel 2.4% Police Pension* 1,387,957 Q 2.3% Municipal Court* 1,386,829 MI 2.3% Customer Services 1,248,127 gm 2.0% Engineering 1,204,407 . 2.0% Planning 898,184 • 1.5% City Manager 518,756 1 0.9% Human Resources 488,048 , 0.8% All Other Streets • Records 438,888 1 25.1% 9.9% Parks 0.7% City Hall Maintenance 421,583 1 7 ' 2 % 0.7% Indigent Defense 385,000 Q 0.6% Intergovernmental* 348,039 Q 0.6% Purchasing 257,362 1 0.4% City Council 214,540 1 Police, Fire & Courts (3) 0.4% Sundome* 150,000 0 57.8% 0.2% State Examiner* 103,000 1 0.2% Hearings Examiner* 51,000 1 0.1% Probation 25,000 1 0.0% District Court* 1,800 0.0% Total $60,944,851 100.0% Fire Pension & Benefits (2) $1,619,203 n 2.7% * Fixed, Mandated or Contractual Costs. (1) Transfers represent General Fund dollars that are re- allocated or transferred to other funds for use by those funds. These dollar amounts will be utilized by the other funds to pay for services, and thus become expenditures of those funds. 2009 budget includes $880,000 transfer to Public Safety Communications for dispatch services and the balance goes to other government funds (e.g: Parks and Recreation, Contingency, Debt Service, etc.) (2) Fire Pension, although classified as an operating reserve fund, is included here because it is supported primarily with General Government resources. (3) 57.8% of General Government resources is spent on Public Safety, including police, fire, municipal and district courts, • transfers to public safety communications and police pension. 6 - Section I • Introduction: Transmittal Memo r • 2008 VS. 2009 REVENUE AND EXPENDITURE OVERVIEW • REVENUES A General Government — Total 2009 projected General Government revenue budget is approximately $58.9 million or 3.2% greater than the 2008 year -end revenue estimate of $57.1 million. A Citywide — Total 2009 projected Citywide revenue is approximately $187.0 million or 14.2% greater than the 2008 year -end estimate of $163.7 million. Refer to chart on the next page for more information. EXPENDITURES A General Government: • 2008 Year -end expenditure estimate is approximately $57.7 million, or $1.4 million, below the amended budget of $59.1 million. • 2009 proposed expenditure budget is approximately $60.9 million; 3.1% greater than the 2008 amended budget of $59.1 million. The increase of approximately III $1.8 million is primarily due to increases in negotiated labor costs, State pension mandates, health care costs, utility costs, criminal justice costs, and the annualized impacts of the staff increases mid -year 2008 for the Deputy Police Chief. A Citywide: • 2008 Year -end expenditure estimate of $166.5 million is approximately 13.4% less than the amended budget of $192.2 million. This savings is primarily due to the administration of management's strict spending controls and the deferral of some capital projects that will not be completed by year -end. • 2009 proposed Citywide budget is approximately $199.7 million; 3.9% greater than the 2008 amended budget of $192.2 million. The increase is mainly due to capital projects, grant funding and inflationary pressures noted previously. Note: The City, with the support of the labor unions, imposed a wage freeze ( "0" percent wage adjustment) for all employees in 2007, which saved the City approximately $1.5 million in labor costs the first year, and made a significant contribution to the City's ability to maintain services and ensure a stable and balanced budget in 2007 and 2008. However, the negotiated labor settlements for 2008 and 2009 reflect some "catch -up" provisions in wages for employees, causing a larger percentage increase in 2009 than would otherwise have been experienced. The average 2009 wage increase for all employees is 5.0 %; however, the 3 -year (2007, 2008 & 2009) average wage increase for all employees is 3.7 %. This wage adjustment is 1.2% less than the average increase in the Consumer Price Index (CPI) of 4.9% for each year of the 3 -year period. Introduction: Transmittal Memo • Section I — 7 More information regarding the City's 2008 and 2009 revenue and expenditures is included in the balance of this report. Refer to chart on the next page for more information on • General Government revenues and expenditures. And Refer to Exhibit I for 2009 revenue and expenditure information by fund. PROJECTED ENDING CASH BALANCE / RESERVE As previously stated, management's fiscal discipline over General Government operating budgets includes conservative guidelines which restrict expenditures and helps ensure minimum cash reserves are maintained. Note: the City maintains Reserves to: meet potential revenue shortfalls, provide for emergencies, meet cash flow needs, fund unbudgeted policy issues, and accommodate unforeseen expenditures and other contingencies. 2009 REVENUE AND EXPENDITURE COMPARISON 2009 2009 2009 2009 2009 2009 EXPENDITURE ESTIMATED ESTIMATED ENDING BAL PROJECTED PROPOSED AS % OF BEGINNING ENDING AS A % OF REVENUE EXPENDITURES DIFFERENCE REVENUE BALANCE BALANCE EXP. General $48,896,585 $50,521,573 ($1,624,988) 3.3% $5,933,646 $4,308,658 8.5% Parks & Recreation 4,244,385 4,377,598 (133,213) 3.1% 432,950 299,737 6.8% Street /Traffic Operations 5,764,810 6,045,680 (280,870) 4.9% 1,147,588 866,718 14.3% • TOTAL GENERAL GOVERNMENT $58,905,780 $60,944,851 ($2,039,071) 3.5% $Z514,184 $5,475,113 9.0% The 2009 proposed General Government Revenue and Expenditure budget, as illustrated in the chart above: Indicates that the budget is balanced utilizing approximately $2 million of the estimated beginning fund balance; a dependency on beginning cash (reserves) of 3.5 %; and ➢ Projects the 2009 ending cash balance (reserves) to be approximately $5.5 million or 9.0% of the 2009 expenditures. Both percentages are within the established new guidelines of a maximum of 4.0% dependency on beginning cash, and a minimum year -end cash balance of 7.0% of annual expenditures. These formulas were established to guide the budget development process and to assist in managing and controlling expenditures throughout the year. These formulas have proven to be very reliable and effective in maintaining the City's strong fiscal position over the years. Additionally, revenues and expenditures are estimated conservatively in developing the budget, with the expectation that the actual revenues will be somewhat stronger and actual 411/ expenditures will be less than budgeted; i.e.: resulting in an effective balanced budget. By budgeting in this manner, the City is positioned well to absorb unexpected expenses or drops 8 — Section I • Introduction: Transmittal Memo in revenue should these conditions occur without catastrophic impacts to its financial position. • Further, in six out of the past ten years, total revenues for both General Fund and for all General Government Funds have exceeded total expenditures in these funds — even though the budget was built based on the utilization of cash reserves. Only in four of the past ten years have expenditures actually exceeded revenues. Below are two historical charts illustrating the revenues and expenditures over the past ten years — Budgets vs. Actual results. GENERAL GOVERNMENT - AS BUDGETED (in thousands) $60,000 $ $3 0,000 . $20,000 $10,000 ■ ■ ■ - _I I. III II I $0 1 1 1 1 1 1 1 1 1 I 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 MN Budgeted Revenue Eli Budgeted Expenditures —+— Beginning Fund Balance GENERAL GOVERNMENT - ACTUAL RESULTS (in thousands) $60,000 $50,000 $40,000 , $30,000 $20,000 $10,000 NM u i i i j u iu iiiI Ig III 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 MII Actual Revenue SIMI Actual Expenditure —*— Beginning Fund Balance Introduction: Transmittal Memo • Section I — 9 The use of reserves to support the City's budget is a normal practice that consistently garners effective results; however, it requires careful monitoring, discipline, and control to ensure that a • prudent level of cash reserves is maintained. Nevertheless, as described in subsequent pages of this section, General Government reserves are near minimum levels, and could be depleted by the end of 2011 unless additional cost reductions and /or revenue enhancements are attained. The Council Budget Committee continues to meet regularly to review General Government budgets and services and to address the sustainability of these services for the future. 2009 BUDGET DEVELOPMENT The following budget goals and guidelines formed the overall foundation and priorities for the 2009 proposed budget: D. Place primary focus on Council's six Strategic Priorities / areas of emphasis - Public Health & Safety, Economic Development, Strategic Partnerships, Quality of Life, Public Resources and Fiscal Stability, and Customer Service and Communications; D Preserve minimum operating cash reserves and allocate necessary funds for non- discretionary fixed, mandated and contractual costs. D Submit a balanced spending plan for operating and capital budgets; D Implement and maintain the strict budget spending constraints issued in April 2008 III by the City Manager; D Implement cost reductions and operational efficiencies wherever possible to minimize costs to our citizens, offset potential revenue shortfalls and to maintain a balanced budget. D Incorporate the City's Six-Year Capital Facilities Plan for Utilities, Streets, Parks, Public Safety, and Community and Economic Development projects. City Management has maintained close supervision, discipline and control over City spending during 2008 and in planning and preparing the 2009 budget. THE REMAINDER OF THIS SECTION INCLUDES: • Overview of the 2008 challenges and accomplishments and the 2009 Budget Focus (relative to the six Council Strategic Priorities); • A Three Year Outlook (projected revenues and expenditures); and • 2009 Budget Highlights III ,o_ Section I • Introduction: Transmittal Memo • MEMORANDUM July 10, 2008 TO: DEPARTMENT DIRECTORS AND DIVISION MANAGERS FROM: DICK ZAIS, CITY MANAGER RITA DEBORD, FINANCE DIRECTOR CINDY EPPERSON, DEPUTY DIRECTOR OF ACCOUNTING & BUDGETING SUBJECT: 2009 BUDGET GUIDELINES This Budget Guidelines packet has been prepared to assist in the development of the 2009 budget. The 2009 budget process will be very similar to that of previous years (refer to Section I for an overview of the City's annual budget process) BUDGET DEVELOPMENT INSTRUCTIONS Section I: Overview of the City's Annual Budget Process Section II: General Information Section I11: Expenditures Section IV: Revenues Section V: Budget Narratives - Preliminary Budget Document Attachment I: Sample of a Budget Narrative Submittal for Preliminary Budget Attachment II: Blank Policy Issue Form Attachment III: 2009 Preliminary Budget Calendar Attachment IV: 2009 City Manager /Finance -- The Policy Issue /Detailed Budget Review. This schedule has not yet been set, and will be provided upon completion. Meetings will be scheduled from August 1 through mid September. Should any essential people (Department Director and Division Managers) be unavailable for budget meetings at any time during this period, please contact Kathy Miles in Finance immediately to advise her of your schedule. The Detailed Budget Worksheets for each division will be distributed after June payroll is posted and most of the 2nd quarter charges are recorded - approximately July 20. CURRENT ACTION ITEMS AND TIME LINES Following are the tasks that need to be completed in the immediate future and the related time lines. (Information and guidelines related to tasks required at later dates are also included in this document to help prepare for the overall budget process.) 110 ➢ Budget Workshop - Annually, Cindy Epperson leads a workshop to explain the budget process and to answer any questions regarding the preparation of the 2009 budget. Two meetings are scheduled the morning of Wed. July ? ?? in the large Community and Economic Development Budget Guidelines ❖ 1 conference room —the first at 8:30 a.m., and the second at 10:30 a.m. All department directors, division managers and other employees involved in budget preparation are urged to attend this meeting. This review will include guideline interpretation and overall budget preparation. ➢ Monday July 28, 2008 - All Policy Issues anticipated for inclusion in the 2009 budget are due to Finance Department in draft form. Note:. Kathy Miles sent out a properly formatted sample policy issue form last year via email. Please use this form, insert your information into the appropriate fields, and return it to Kathy electronically. Contact Kathy if you need the form sent again. If a handwritten document is preferred, please submit it one full week prior to the due date (Attachment A). ➢ Thursday, July 31, 2008 - All 2008 year -end estimates and proposed 2009 Preliminary budget worksheets due to the Finance Department. • 2008 Year - End Estimates - Identify on the budget worksheets (attached) the year- end estimate of revenues and expenditures, based on the most current information available and best judgment. Note: If one expenditure area is going over budget, it will need to be adjust downward in another area (within the same department and fund) so that the net year -end expenditures do not exceed the budget. Please reduce year -end salary estimates for any position vacancies. • Proposed 2009 Preliminary Budget - Identify on the budget worksheets attached, the proposed projected revenues and expenditures (operating and capital) for 2009 based on the most current information available and the departments proposed operating plan. Note: Submit your budget worksheets to Teresa Borgman in Finance (updated with your year -end estimates and your 2009 budget requests). Finance will be greatly assisted by ensuring that all information is submitted to the Finance Department before the July 31st due date. This allows Finance adequate time to process the data before budget meetings begin. If there are any questions after reading the enclosed information, feel free to contact Cindy Epperson, Deputy Director of Accounting & Budgeting, at #576 -6644. cc: City Council 2 ❖ Budget Guidelines I. OVERVIEW OF THE CITY'S ANNUAL BUDGET PROCESS � h City's annual budget There are several steps tot e C y s process: g p Step 1: Distribution Of Budget Guidelines And A Draft "Working Budget" Document — Distributed to all Department Heads and Division Managers by the Finance Department. (This working budget is updated by the respective Division Managers and Department Directors to reflect year -end estimates and next years budget requests and submitted to Finance along with draft Policy Issues, if any. See #3 below.) Step 2: Review And Discussion Of The 2009 Draft Policy Issues —Department Directors meet as a group. Step 3: Year -End Estimate And Next Year's Proposed Revenue And Expenditure Budgets Submitted — Updated budget worksheets are submitted to the Finance Department by Division Managers for processing and preparation in advance of the Administrative Budget Review meeting. Step 4: Administrative Budget Reviews — Department budget review meetings are held with the City Manager, Finance department staff and the respective Department Directors and Division Managers. Budget requests are adjusted as needed. Step 5: Update And Preparation Of Departmental Budget Information — With cooperation from the various Department Directors and staff, the Finance Department prepares this • information as adjusted during the administrative budget review meetings. Step 6: 2009 Budget Forecast is submitted to Council — The Finance Department prepares and submits a Budget Forecast to Council utilizing, in part, the information submitted by Department Heads and discussed at the Administrative Budget Review meeting, as noted above. The Budget Forecast is typically discussed with Council at the last regular Council meeting in October. Step 7: 2009 Preliminary Budget is prepared and submitted to Council — The same format and process as used in the past will be utilized again this year. Each department and division will finalize their preliminary budget request and prepare the related budget narratives for inclusion in the Preliminary Budget document. The Finance Department will review and refine as needed, and prepare the full document for submission to Council. The Policy Issue document and Preliminary Budget will be submitted to Council on November 6th. Step 8: Council's Budget Review. — Department budget review meetings with Council will be held during the November and December time frame. Step 9: Public Budget Hearing — As required by law, will be held on or before the first Monday in December of each year. (Generally held the last Council meeting in November.) Step 10: Final Council Budget Review Meeting — Finance Department prepares and submits a Budget Wrap -up Document to Council. Council votes on the Policy Issues and any other issues, as necessary. Step 11: Council Passes Ordinance — The ordinance approving the 2009 Budget in passed in December. Budget Guidelines •• 3 II. GENERAL INFORMATION The initial budget worksheets provided to department heads and division managers (for their 411 updates regarding year -end estimates and 2009 proposed budget) are based on the 2008 adopted budget, as adjusted for the following items: SALARY AND WAGES ADJUSTMENTS • The negotiated increases in base wages (with an estimate for 2008 unsettled contracts). ➢ Applicable compensation adjustments; including: • Longevity • Approved Civil Service Reclassifications • Merit (step) increases - please review for accuracy, but do not automatically increase steps for someone not at top step - the new budget system is extracting personnel related information directly from payroll. • 8% Medical Insurance increase, subject to further review. • 4% Dental Insurance increase • 5% Industrial Insurance increase ➢ 5% Insurance - Risk Management 4% Postage • ®, > Utility Increases: • 3% Natural Gas • 6.5% Electricity • 25% Fuel • 5.5% Water • 3.5% Wastewater • 5% Refuse • 3% Cellular phone > Internal charges (first estimate): • 4% City Service charge • 4% Equipment Maintenance & Operation POLICY ISSUE PROPOSALS All proposals should be submitted using the Policy Issue form enclosed, (refer to Attachment II). If further explanation beyond the two -page form is necessary, summarize the information on the form (do not expand the form beyond the 2 pages) and provide additional information in a separate attached, supplemental memorandum. A draft of all Policy Issue proposals must be submitted to Finance by July 30th. The Policy Issues need not be complete and in final form until September /October time frame. 4 • Budget Guidelines III. EXPENDITURES (General, Parks and Street Funds) hese instructions include For General Government (Ge ) divisions summary budget limitations. 2009 GENERAL GOVERNMENT For Preliminary Budget development, the 2008 adopted budget is transferred over and becomes the 2009 budget; except as noted on the previous page. If departments have needs that cannot be met within the above - described limitations, a policy issue must be submitted. The initial reports will include actual expenditures through June 2008. Please identify on this report the estimated year -end actual expenditures. Although it is early in the year, it is important that these estimates be as accurate as possible, as they determine the calculation of the 2009 beginning fund balance (which is then used, in part, to determine funds available for the 2009 budget expenditures). ALL FUNDS: PERSONNEL. -- WAGE AND BENEFIT CONSIDERATIONS ➢ No additional staff (permanent, full -time, part -time or temporary) increases are to be budgeted for 2009. > No requests for new or additional staffing in all funds (permanent, full -time or part -time) above 2008 authorized levels will be allowed, except for positions funded by new grants • or reductions in other staffing expenses. If personnel cost adjustments produce an increase in department /division total 2009 budget above what revenues can support, expenditure reductions elsewhere must be implemented to balance the 2009 budget. For 2009, expenditures for existing part -time or temporary staff are to be projected at 2008 actual estimated levels or below. All reclasses already approved by Civil Service should already be included in the 2009 budget. Exclude reclasses requested but not yet approved, at this point in time. However, please inform Finance of any pending reclasses. 2008 year -end estimates for staffing need to be analyzed and adjusted to take into account vacancies or other staffing related changes. 2009 Proposed Personnel Budget: 2009 budget staffing costs noted on the budget worksheets are generated from the staff percentage worksheet, and these system - generated accounts say "Staff." Additionally, some staffing costs such as Overtime, Retirement Cashouts and Special Pay need to be entered -- they do not come in from the staff percentage worksheet. • 2009 Expenditures For Anticipated Employee Retirements And Cash -Outs — Should be budgeted in Object #140. (Please adjust the 2009 budget to accurately estimate this expense, as it is one that cannot be "automatically generated. ") Budget Guidelines 4. 5 2009 Expenditures For State Retirement "Excess Compensation" Estimate — Should be budgeted in Object #224. "Excess Compensation," as used in this section, includes any payment that was used • in the calculation of the employee's retirement allowance by the State Retirement System, which is in excess of 240 hours of unused annual leave. For planned 2009 retirements, contact the Finance Department for assistance in calculating these costs. 2009 Overtime Expenditures — Should provide for the ongoing requirements of the Fair Labor Standards Act. However, each department is to perform an overtime cost /impact analysis. The objective is to identify avoidable costs and reduce overtime expenditures to below year -end estimates. 2009 proposed expenditures are to be budgeted no greater than the 2008 budget or year- end estimates, whichever is lower. 2009 City Expenditures For Medical And Dental Insurance — Should be estimated at the budgeted amount for 2008 (i.e. disregard vacancies for medical and dental insurance estimates). Initially, the 2009 budget will include a 7% rate increase to cover medical inflation. New rates will be developed later in August /September, and will consider our group history and any plan design changes recommended by the Insurance Committee. PROFESSIONAL SERVICES Except for indigent defense and mandated or required professional service contracts, no funds should be budgeted for any new professional services. Any proposed increase in professional services should not be budgeted and will require explanatory narrative and a Policy Issue request. OTHER OPERATING COSTS Travel And Training Expenditures (Account #430) — are to be budgeted and justified on the basis of critical needs. ➢ The 2009 travel budget should be no greater than the costs expected for 2008 year -end estimates or the 2008 budget, whichever is lower. ➢ Each division is requested to identify by location and professional affiliation, planned out -of- state travel for 2009. ➢ Make sure account #430 includes only room, meal, and general subsistence costs. Registration fees are to be budgeted in Account 490. Miscellaneous Operating Expenses — Refer to Section II, General Information, for a list of items that have been increased to calculate your initial 2009 budget request. Any deviation from Budget Guidelines for specific operating requirements of a department or division must be discussed at the Administrative Budget. Review meetings and approved by the City Manager, and should be described in the budget narrative portion of the Preliminary Budget document. Some internal charges, such as Equipment Rental M &O are currently budgeted at the 2008 level, while some have been estimated. As Finance further develops these charges, they will be entered into the 2009 budget. Equipment Operation And Replacement Charges — For all departments, these are to be budgeted as ongoing expenditures. The Fleet Manager will identify funding requirements for each • department. The Equipment Rental and Replacement Fund owns all rolling stock that can be capitalized (i.e. a useful life greater than one year with a cost greater than $5,000) with the 6 ❖ Budget Guidelines • exception of Fire and Transit. The procedures relating to the Equipment Rental Fund are set forth • in the Municipal Code, Chapter 3.15. No additions to fleet (as opposed to equipment replacement) are to be included in the 2009 proposed budget submitted on the budget worksheets. Any addition to fleet must be discussed at the Department Administrative Budget Review meeting and approved by the City Manager, will requires a transfer of funds from the Operating Fund to Equipment Rental to cover the initial purchase, and must be budgeted in both funds. Additions to fleet are normally policy issues. Therefore, operating departments must notify the Equipment Rental Manager of potential Policy Issues that may affect the Equipment Rental budget. If a department expects Equipment Rental to fabricate or provide services not included in the M &O charges, these costs should be budgeted separately. If there are any questions regarding whether a cost is included in the M &O charge, contact the Equipment Rental Manager. Other 2009 Budget Items — Except for fixed, mandated, contractual, or uniform cost increases for expenditures not addressed in these guidelines, should not exceed 2008 year -end estimates, or 2008 amended budget, whichever is lower. CAPITAL OUTLAY Capital outlays for 2009 are to be reduced 10% below the 2008 budget. Requests should include sufficient justification for Council consideration as indicated in the budget submission format. Contact the Purchasing Division for assistance in developing estimates for major purchases. (Purchases below $5,000 per individual item are not considered capital outlay, and would likely be included in the budget as "small tools and minor equipment ") NON- GENERAL GOVERNMENT DIVISIONS All funds had the 2008 adopted budget carried forward into 2009. Other operating divisions should follow the same guidelines as General Government, as detailed above. It is expected that the capital funds would need to be adjusted for new projects. For capital projects budgeted in 2008, please provide an estimate of costs expected to be completed by the end of 2008 -- the balance of the project should be rebudgeted in 2009. IV. REVENUES The 2008 budgeted revenues have also been programmatically carried forward to the 2009 budget. RATE ADJUSTMENTS Departments considering increases in utility rates or fares should prepare a separate policy issue supporting the rate adjustments. TAX ADJUSTMENTS The Finance Department will estimate tax receipts in light of current economic conditions and changes in State law. This will include a review of the City tax on City -owned utilities. Budget Guidelines ❖ 7 FEES Where possible, all current fee - for - service programs should be budgeted on a 100% self- supporting basis. If raises in fees are necessary to maintain this standard, include a comparison of existing fees and costs together with proposed increases and an estimate of revenues generated to offset anticipated expenditures. These changes should be presented in a Policy Issue. GENERAL REVENUES The Finance Department will make an estimate of general revenues that do not require departmental input. They will also review department revenue estimates prior to final submittal. V. BUDGET NARRATIVES - PRELIMINARY BUDGET DOCUMENT The Department /Division budget narratives make up the largest portion of the Preliminary Budget Document. The budget narrative format consists of six sections. They are: 1. Division Definition 2. Authorized Personnel 3. Performance Statistics 4. Explanatory Narrative 5. Capital Outlay 6. Major Policy Issues The information required in each of these sections is described in the Budget Request Summary 11111 Format, Attachment I. (It is also recommended that Department Director and Division Managers review last years Preliminary Budget document narratives.) A copy of the previous year's budget narrative will be issued to each Division Manager and Department Director by Finance later in the budget development process. This narrative should then be used to assist in the development of the 2009 budget narrative. These "narrative drafts" (i.e. last year's narratives and 2009 approved budget proposals) will be issued as soon as the numbers are "frozen" for the Preliminary Budget, around the end of September. Narratives should then be written to reflect the 2009 budget proposals, the 2008 year -end estimates and assumptions made by departments based on the Budget Forecast printouts. Each Department Director is responsible for the preparation and content of the budget narratives for all divisions /funds under their scope of responsibility. It is critical that narratives be submitted on time to ensure proper review and finalization by Finance and the City Manager. (Attachment III - Budget Calendar.) FUNCTIONAL ORGANIZATIONAL CHART In addition to the budget narrative described above, each department is to provide a current (not proposed) 2008 organizational chart, including statements outlining organizational responsibility. ➢ A restructured organizational chart, similar to the one used in the 2008 Preliminary Budget document, will be distributed to Department Heads and should be used as a template for preparing the organizational chart for the 2009 Preliminary Budget document (again; this 411 chart should reflect the 2008 organization.) 8 • Budget Guidelines . ➢ The updated chart should reflect the organization as it currently exists in 2008. Remember • that the number of employees shown on the organizational chart should equal the number of employees listed in the "Authorized Personnel" section of your 2008 budget narrative as "Permanent Budgeted Positions." If changes were made after the 2008 budget was adopted, the personnel listing in the "2008 amended budget" column should be revised to reflect those changes. • Budget Guidelines ❖ 9 ATTACHMENT d CITY OF YAKIMA (DEPARTMENT) 2008 BUDGET REQUEST SUMMARY DIVISION DEFINITION A short statement describing the function(s) of the division, including the division's Mission Statement, if applicable. End your "Definition" with a listing of service units within the division. AUTHORIZED PERSONNEL Each department and division is responsible for updating the detailed authorized personnel list. This list should reflect: ➢ Actual personnel authorized for 2007, ➢ Budgeted level (as amended) for 2008, and ➢ Proposed budget level for 2009. This information is essential to the 2009 Preliminary Budget process. The number of temporary employees each year should be denoted by separate footnote listing immediately below the permanent authorized listing. (The "2008 Amended Budget" authorization should equal the staffing level identified on the functional organizational chart submitted for inclusion in the Preliminary Budget.) Authorized personnel should be formatted as shown in the following example: 2008 2009 CLASS 2007 AMENDED PROPOSED CODE POSITION TITLE ACTUAL BUDGET BUDGET 1110 City Manager 1.00 1.00 1.00 1130 Assistant City Manager 1.00 1.00 1.00 1311 Executive Secretary 1.00 1.00 1.00 10506 Executive Assistant 1.00 1.00 1.00 TOTAL PERSONNEL 4.00 4.00 4.00 (1) Explain changes by summarizing budgeted policy issue or other basis for the change; i.e. "See proposed budgeted policy issue to add an Assistant Services Operator." PERFORMANCE STATISTICS List performance statistics only where applicable. Divisions are encouraged to consider presenting data that would be meaningful as a chart or graph. For example, Water and Wastewater summarize their budgets by service unit and produce a pie chart, while Transit charts monthly ridership. EXPLANATORY NARRATIVE Begin the "Explanatory Narrative" section with any general narrative discussion which would affect numerous account lines in your budget. 10 • Budget Guidelines A statement similar to the following example is recommended: " All service units' salary and benefit accounts in this division are impacted by the wage P Y e g settlement and an estimate for the management pay and compensation adjustment (PACA). This statement could likewise be modified and used for any other accounts such as benefits, insurance, or any accounts impacted uniformly throughout a department or division's budgets. Note: Finance will draft a statement regarding systematic personnel benefit changes. To complete your "Explanatory Narrative" section for each division, referenced by service unit title and number, describe the following: ➢ Address the Program Changes /Policy Issues — Explain any administrative changes in programs and operations proposed or planned for 2009. This should include a brief explanation of all budgeted policy issues and the accounts affected. ➢ Address Substantial Increases/Decreases in Spending for 2009 — Briefly identify, explain and justify all increases or decreases in each summary line item of proposed expenditures for 2009 which result in a change of 3% and $1,000, plus or minus, from the 2008 estimated year -end expenditure levels. Also, if a significant difference occurs between the 2008 budget and the estimated year -end, this relationship should be narratively documented. This narrative should directly correlate to expenditure levels reported on the summary budget printouts included with your expenditure/ revenue projection worksheets. (This exdudes increases planned for utilities and other commodity items specified in the Budget Guidelines. Also excluded are increases or decreases which represent policy issues requiring Council action see separate section below.) Please use the following example as a guideline for the narrative. Please note, the intent is to continue to "right- size" the general narrative descriptions. This is the basic narrative for all accounts. GENERAL NARRATIVE EXAMPLE Account # and Name — This line item for 2009 reflects an increase /decrease of $ from the 2008 year -end estimate of $ to $ . This is a increase /decrease. The increase /decrease is $ or % from the 2008 budget of $ . The increase /decrease is the result of For most accounts this narrative is all that is necessary to describe increases or decreases. Extensive narrative repetition is to be limited. If, for example, all service units are impacted by a labor settlement, management increase or adjustment, a one -time general statement at the beginning of the division's "Explanatory Narrative" should be used to describe those overall impacts. (See the "Example" first discussed in the "Explanatory Narrative" section.) It is also helpful to give a short explanation of what is included in the account i.e. "This account provides for printing of the City's budget documents and financial statements; registrations for training seminars; and dues and subscriptions to keep current on accounting /finance issues." 41110 ➢ Talk About What's Special or Exceptional in Your Division(s) for 2009 — Identify and describe special or exceptional work programs to be undertaken in 2009; approximate cost, if applicable, and estimated time to complete. Budget Guidelines ❖ 11 ➢ Explain Notable "Up's" or "Down's" in Revenue Estimates — Identify and explain any variances in 2009 revenue estimates, if applicable to the departments operation, which change plus or • minus 3% from 2008 estimated actual levels. • CAPITAL OUTLAY REQUESTS Please submit Budget Year 2009 capital outlay requests in the format shown below. Make sure that all capital outlays are listed by service unit and type (equipment vs. building, etc.). Also remember that capital outlays must exceed $5,000 per individual item and compare total proposed capital outlay to three year average. CAPITAL OUTLAY REQUEST EXAMPLE SERVICE UNIT 341 — Account 640 Machinery and Equipment - ITEM COST FUNDING SOURCE JUSTIFICATION Y -PAC acquisition gear (cameras, $14,000 Franchise Fees Improve quality and versatility of equipment used by microphones, cords, etc.) division staff in the production of Y -PAC programming. YCTV acquisition gear (cameras, $14,000 Franchise Fees Improve quality and versatility of equipment used by microphones, cords, etc.) community producers in the production of YCTV programming. YCTV /Y -PAC facility $15,000 Franchise Fees Provide dedicated studio facilities for Y -PAC productions Studio "B" upgrade and enhanced "chroma -key" capabilities. TOTAL SERVICE UNIT 341 $43,000 12 • Budget Guidelines ATTACHMENT II MAJOR POLICY ISSUES /SUPPLEMENTAL BUDGET REQUESTS In order of priority prepare a separate, short summary for each departmental / division policy issue as follows, using the attached format. Again this year, all policy issues should not exceed one typewritten page, front and back. Contact Kathy Miles in Finance for a sample form, which can be e- mailed, and already in the proper format. The form can then be updated and returned in the same fashion. Please try to have these submitted to Finance by July 18, for summarization and compilation for City Manager / Department Head review. If further supplemental information is required to explain, document, or expand on the rationale for policy change, a separate memorandum should be preparted. The supplemental information may be prepared in within the division and submitted as an attachment to the main policy issue finalized in Finance. Below is a sample Policy Issue format. 2008 MAJOR POLICY ISSUE • DEPARTMENT: POLICY ISSUE TITLE: - Budgeted / Unbudgeted 1. Proposal - State the proposal /issue to be considered and policy objectives: i.e. proposed reorganization, staff increases or decreases, increase in fees, charges for services, new projects, major increases or decreases in service levels, etc. 2. a. Fiscal Impact - cost reductions or increases b. Proposed Funding Source - if applicable; identify increases or decreases in revenues c. Public Impact - d. Personnel Impact - e. Required Changes in City Regulations or Policies - f. Legal Constraints, if applicable - g. Viable Alternatives - Consideration of several viable alternatives to meet policy objectives. 3. Conclusion and /or Staff Recommendation - Budget Guidelines • 13 ATTACHMENT III • to 2009 BUDGET PROCESS CALENDAR (as of 7/ ? ? ?/07) co CITY MANAGER / / DEPA /; ACTION STEPS FINANCE kDIY COUNCIL R.C.W. DATE i Distribution of Preliminary Budget Guidelines, including the request for 2008 policy issues. July 14 ='- ` Sept. 7 Distribution of Budget Worksheet Printouts: Request for estimates of revenues and expenditures for year- By July 20 Sept. 7 tt end and 2008 budget request. Finance Department issues budget worksheet printouts (showing 6 months of activity). Printouts will be updated t process. ,= ,_ ,_„ „_ _ , Finance Department Budget Development Workshop July ? ?? ,4July ? ?? -- 2008 draft policy issues due to Finance ;;SiU July ,Y -- CM /Finance /Department Directors Policy Issue Review Meeting TBA ` i ATBA -- Budget worksheet printouts of revenue/expenditure estimates (2007 year-end & proposed 2008) due to Finance % w Sept. 1 g P P ( Y P P ) Aug. g Pt • Preliminary Revenue Review 2008 Status - CM /Finance July 31 N a. Review General Govt. revenue projections - CM /Finance July 31 L lA, . Oct. 31 Finance assists departments with development prior to CM /department review meetings Ongoing t- Ongoing ` -- (Aug. — Sept) ,(Aug. Sept ), CM /Finance /Dept. review of Year -end forecasts and 2008 Budget Requests Aug. — Sept. r Aug,;. Sept . -- 2008 budget narrative development — Departments /Divisions Sept ;';Oct 3' - -- Departments submit detail budget narratives to Finance x Oct” 3P:',...,' -- Finance & CM prepare 2008 Budget Forecast Sept. — Oct 10 w . }. _ - a , ,,,- '. -- Budget Forecast on Council Agenda - CM /Finance ;1,5';P4 Oct. 16 November 1 Finalize Preliminary Budget Document - CM /Finance Oct. 29 , Y . ' None Preliminary Budget and Policy Issue Documents printed and available to City Council /public r .. ` e Nov. 3 6 weeks prior 'a to January 1 City Clerk publishes notice of Budget Hearings 1st 2 weeks 1st 2 weeks in November , in November Council sets Property Tax Levy (Holds hearing on revenues) Nov. 4 November 15 Department Budget Reviews, with Council °) Nov. 4 Nov 4, Nov. 4, a) Utility /Enterprise Funds 11, 18, & 25 11, 25 11, 18, & 25 -- b) General Government Funds >,. Council holds Public Hearing (mandatory) Nov. 18 On or before 'F: . December 1 Council holds Budget Wrap -Up meeting to finalize Budget Decisions Dec. 2 _' Dee 2., Dec. 2 -- 2008 Budget adopted (2) 3. Dec. 9 or 16 December 31 (1) Only as required -- Council may chose to review the Policy Issue document, have limited Detailed Budget reviews, and hold the Public Hearing only, as required by law. (2) State law requires that the Budget be adopted by December 31. For our purposes, based on current Council schedule, the Budget will be adopted at the last business meeting of the 2008 calendar year, which may be either December 12, 2007 or December 19, 2008. III III 1111 • YAKIMA COUNTY BUDGET PRIORITIES General Fund The critical budgeting questions we hold ourselves accountable to are: • What are the community needs expected from government and defined by our constituents? • What are the priorities for County expenditures which will achieve those community needs? • What are the functions (strategies and activities) we can implement and/or strengthen to most effectively achieve these priorities? • What are the key budget policies necessary to effectively guide defined functions? I. Community Needs: A process by which county government formulates their leadership understandings of community needs. The process occurs through daily business activities and assessments, community hearings, and other interactions with our community. A preliminary budget is formed based upon those defined needs. The budget process embraces those needs by bringing together all elected officials to collectively embrace funding priorities. II. Priorities: Major community- needed services are granted, mandated, or requested by Federal/State and/or Community. These community priorities can be partnerships or solely provided services by County government where the greatest efficiencies or effectiveness can be gained. These priorities go through an on -going review implemented through the resource allocation' process. • Economic Development — Efforts that seek to improve the economic well -being of our community by creating and/or retaining jobs and supporting or growing incomes and the tax base. Support for the Yakima County Development Association would be an example. • Governmental Services — Indirect County services provided by government that support the internal functions of government. This support may be in the form of providing basic support services such as accounting services or human resources. Support may also take the shape of providing resources for the operation of the government through property assessment and collection. ' See Resource Allocation Policy in section IV. • Health and Human Services — Efforts to improve the physical and mental well -being of the citizens of our community using preventative measures. Operational support of the Yakima County Health District would be an example. • Law and Justice — The ability to provide effective and timely resolution to legal matters while assuring dignified and fair treatment to all participants that meet Federal, State and local laws. Courts, prosecution and defense are all components of the law and justice system. • Public Safety - The protection of the general population from all manner of significant danger, injury, damage or harm as may occur during a criminal act or natural disaster, and the prevention of the same. This protection is typically provided by the Sheriff's Department, Department of Security, and the Department of Corrections. • Public Services — Direct services that are provided by government to its citizens that the private sector does not provide for or provides limited service. Examples include elections, document recording, planning, etc. • Quality of Life — Efforts to improve the well -being of the community by 111 providing services through cultural and recreational opportunities. Parks, pathways and investments in service organizations would be examples of quality of life programs. III. Functions: The county priorities are financially implemented through major and minor functions funding allocations to strategically meet community needs. 1. Major Function: A subset of County priorities is distinguished by essential and specialized strategies necessary to achieve a County priority. To be a major function it must meet the following criteria: • Community cannot effectively or efficiently provide this function without County government participation. • County government must have adequate operational resources (financial/physical/human) to provide this major function. • This function must clearly meet distinct needs of a community priority. 2. Minor Function: A group of related activities that fulfill major functions. To be a minor function it must meet the following criteria: • Minor functions are distinct components of a major function • necessary to be fulfilled. • A minor function requires operating resources such as financial, physical or human resources to complete a major function. IV. Policies: The following policies have been adopted by the Board of County Commissioners to effectively guide the defined functions. 1. Resource Allocation Policy (2007) — This policy provides for the Board to annually allocate resources to the funding priorities set by the Board. 2. Reserve Policy (2006) — This policy defines reserve objectives, three classifications of reserves (restricted, designated and available) that make up total reserves, reserve levels and the process for replenishing of total reserves. 3. Expenditure (Contingency) Policy (2007) — This policy encourages elected officials and managers to budget and spend prudently. It is intended to allow departments to fully utilize their annual budgets as well as provide accountability within defined cost categories. • The Expenditure (Contingency) Policy replaced a previous policy called Carryout where a department was allocated 40% of their unspent budget for capital and one -time expenses. Carryout was very difficult to budget and was a passive approach to resource allocation. 4. Flex Costs Policy (2006) — This policy defines a flex cost as line item budget costs volatile in nature and difficult to anticipate and/or predict within any year to year line item budget projection. This policy gives the Board of County Commissioners the ability to authorize what would be identified as a flex cost, reserve levels for flex costs and the annual process to fund flex costs. r Resource Allocation Policy Upon completion of the preliminary annual General Fund budget allocation review process, the BOCC will exercise its final budgetary authority to allocate all revenues (gains or losses) within the respective seven funding priorities. The BOCC will strive to not reduce, in real aggregate dollars, any funding priority when there is total General Fund general revenue growth. If any County departments and/or Offices have cost increases (excluding "flex costs" as defined within the Yakima County Flex Cost Policy) these cost increases will not serve as a basis for additional and /or supplemental appropriations by the BOCC out of the General Fund. Background: The General Fund has reflected varying levels of growth in revenue from year to year. However, in certain years where initiatives such as I -747 (1% Property Tax growth) and I -695 ($30 car tabs) were implemented, the growth was ineffective and damaging to the • General Fund budgets in terms of resources to keep up with operational costs. In most years since these initiatives there has been a disproportionate growth in operational costs exceeding the growth in revenue. This chain of events and circumstances has mandated a shift in the allocation of General Fund resources. These shifts have adversely impacted many types of County services causing the reduction or elimination of health and human services programs, economic development programs, quality of life programs, and other services to the community. The Board of Yakima County Commissioners (BOCC) has the statutory authority, responsibility and obligation to reasonably manage County revenues in a manner that will foster a broad spectrum of services to benefit the community of the County. Revenue allocations are based upon the needs of a changing community as well as the modifications in funding levels. Many revenue resources are allocated for specific purposes, as defined, and may not be used outside of those defined purposes. A portion of the revenue resources is the "General Fund ". Annual General Fund Revenues: Each year, the BOCC, Budget Director, elected officials and department heads jointly work towards an " estimate" of anticipated revenues for the following year's annual General Fund budget. This " estimate" creates a baseline point of reference for the budget process. It is clearly understood by the BOCC, Budget Director, elected officials and department heads that this is only an "estimate ". Therefore, the BOCC must evaluate fiscally responsible levels of reserves to reasonably address unanticipated funding shortfalls, expense overruns, cash flow fluctuations and/or any other similar issues. 3/13/2009 • Accordingly in 2005, the BOCC established a General Fund Reserve Policy to provide parameters to enhance Yakima County's ability to meet its financial obligations. The General Fund Reserve must be fully funded, as defined by policy. When the reserve policy funding requirements are met as determined by the BOCC, the remaining budgetary impacts, whether positive or negative, will be distributed according to the funding priorities of Yakima County. Funding Priorities of Yakima County: Revenues are annually allocated according to the funding priorities set by the BOCC in accordance with resolution 134 -2007 "Funding Priorities of Yakima County" and with input from elected County officials, Department Heads and public comment. The seven funding priorities of Yakima County are as follows: (alphabetical) o Economic Development o Governmental Services o Health and Human Services • o Law and Justice o Public Safety o Public Services o Quality of Life Definitions: County Funding Priorities: (see example below) Major Community- needed services are granted, mandated, or requested by Federal/State and/or community. These community priorities can be partnerships or solely provided services by County government where the greatest efficiencies or effectiveness can be gained. General Revenue: Revenues that are not received for a specific purpose that are used to support the governmental function. General revenues would not include grants, contracts, or other funding sources required to be used for a specific purpose. Major Functions: (see example below) A subset of County priorities is distinguished by essential and specialized services necessary to achieve a County priority. To be a major function it must meet the following criteria: • The community cannot effectively or efficiently provide this function without County government participation. • County government must have adequate operational resources (financial/physical / human) to provide this major function. • This function must clearly meet distinct needs of a community priority. 3/13/2009 Minor Functions: (see example below) A group of related programs that fulfill major functions. To be a minor function, it must meet the following criteria: • Minor functions are distinct components of a major function necessary to be fulfilled. • A minor function requires operating resources such as financial, physical or human resources to complete a major function. Tasks: Work or job activities that have distinct and describable elements to fulfill minor functions. Example: Governmental Services County $5,491,1:17 _9 810 °k 05 A Priorities ;$5,985"842 9 996% 06 B gaVAIPSIketW $175,000 7.896% Unfunded Accounts Payable Payroll Major $213,383 3.743% 05 A $202,713 3.556% 05 Function $212,511 3.460% 06 B $208,833 3.400% 06 B i_TI P6' Q.r t� ' a`�=• j o» B,�00 ;VW-NZ). :�" v..... ,.r , cn- �..�� -, � "� � ._.. e .., ., -- $0 0.000% Unfunded $0 0.000% Unfunded Voucher auditing Cash vouchers Voucher data entry Minor $130,635 05 A $43,545 05 $21,773 05 A Function $130,108 06 B $43,369 06 B $21,684 06 B $0 Unfunded $0 Unfunded' $0 Unfunded Reporting -AP Bank deposits Vendors $10,886 05 A $4,373 05 $2,171 05 $10,844 06 B $4,337 06 B $2,169 06 B 47SINAVIWW. SinneMen. Oth ' : ° .. jOthe'; $0 Unfunded $0 Unfunded' $0 Unfunded Adopted by Resolution 262 -2007 3/13/2009 • General Fund Reserve Policy Reserve Objectives: Adequate reserve levels are a necessary component of the County's overall financial management strategy and a key factor in external agencies' measurement of the County's financial strength. The Board of County Commissioners will determine the level of reserves it deems necessary, essential and fiscally prudent as well as the level of reserves required by law, ordinance and/or bond covenants to ensure service levels, sufficient cash flow, financial stability, and protection against economic downturns and emergencies. Prudent use of reserve funds enables the County to address future hidden or unanticipated costs, take advantage of matching grant funds and the ability to exercise flexible financial planning for future projects. The Board of County Commissioners has determined it is fiscally necessary, essential and prudent to have three types of reserves within the Total Reserves of the General Fund: Available, Designated, and Restricted. Total Reserves: • In order for the County to be in a fiscally responsible position, the Board of County Commissioners will annually establish and maintain a General Fund total reserve level which the Board believes is fiscally necessary, essential and prudent. This budgetary total reserve level is essential to protect cash flow and other stated reserve objectives in offsetting significant financial revenue fluctuations. In the event the annual total reserve level as determined by the Board of County Commissioners is exceeded, these additional funds will be deemed as surplus reserves and may be designated for any County General Fund one -time expense use as deemed appropriate by the Board of County Commissioners. Replenishing of Total Reserves: A current total reserve level of at least twelve percent (12 %) has been set by resolution by the Board of County Commissioners. However, depending on the Board of County Commissioners' assessment of the County's fiscal situation, the Board may choose to adjust the levels up or down by future resolution action. The Board of County Commissioners shall determine the necessary budgetary actions through prudent management of revenue, expenditures, and/or contributions from the annual General Fund budget to keep the total level of reserves at the appropriate level. If, at any time, the level of total reserves is projected to drop below the adopted reserve levels, the Board of County Commissioners will institute budgetary actions necessary to bring these total reserves up to the established level of reserves within the following two (2) subsequent annual budget cycles. Such Board of County Commissioners budgetary actions may include, but are not limited to, the following: preventing the future use of available reserves; prohibiting formation of new designated reserves; suspending or amending the Board of County Commissioners current Carryout Policy; mid -year budget reductions; program reductions; freezing new hiring; freezing of all salaries and benefits; and/or implementing layoffs. Restricted Reserves: Restricted reserves are either required to be set aside in accordance with general accepted accounting principals (GAAP) or by state or federal requirement. Restricted reserves are therefore set by actions outside BOCC determination and are deemed to be a primary requirement and part of the total reserve levels necessary. Designated Reserves: Designated reserves cannot be used for annually re- occurring funding expenses (e.g. wage and benefit increases). Designated reserves are for specific projects or dedicated funding streams as determined by the Board of County Commissioners. Appropriation of these funds must not disrupt the cash flow requirements of the General Fund. Available Reserves: Available reserves must be used to achieve the total reserve levels as determined by the Board of County Commissioners. These remaining available reserves may only be used as determined by the Board of County Commissioners for one -time funding needs and cannot be used for annually re- occurring funding expenses(e.g. wage and benefit increases). Adopted by Resolution 56 -2006 General Fund Expenditure Policy To encourage elected officials and managers to budget and spend prudently, the Board of County Commissioner's has established a General Fund Expenditure Policy. The policy is intended to provide allocation of resources that allow departments the ability to fully utilize their annual budget. The budget is classified into four major categories as defined by the Washington State Auditor's Budgeting, Accounting, Reporting System (BARS) as follows: • Salary/Benefits — Includes salary costs, overtime, extra help, benefits and year end annual leave accruals (objects 10 and 20 in BARS). • Supplies — Includes supplies, fuel consumed, and small tools and minor equipment (object 30 in BARS). • Other Services and Charges — Includes professional services, communication, travel, advertising, operating rentals and leases, insurance, utilities, repairs and maintenance, • intergovernmental services and other miscellaneous costs (objects 40 and 50 in BARS). • Contingencv /Capital Expenditures — Contingency is to be used for unanticipated over - expenditures. Capital expenditures include one -time improvements such as software upgrades, equipment, furniture and limited term projects not funded as an ongoing portion of the annual operations budget. Each department may adjust the respective expenditure categories of Salaries/Benefits, Supplies, and Other Services and Charges by +/- 5% annually at their discretion. The Contingency /Capital Expenditures category may be fully utilized at the discretion of each department to fund the other categories as long as they do not exceed the 5% buffer. Any adjustments which exceed +/- 5% will require notification and justification to the BOCC for such activity. The Contingency /Capital expenditure category will be annually established at 1% of the respective department total allocated resources, excluding grants /contracts, fixed and flex costs. Rollover of unused Contingency /Capital Expenditure funds will be allowed, not to exceed 5% of the respective department total allocated resources, excluding grants /contracts, fixed and flex costs. Adopted by Resolution 416 -2007 r 3/13/2009 • Flex Costs Policy Definition of Flex Costs: Annual General Fund line item budget costs volatile in nature and difficult to anticipate and/or predict within any year to year line item budget projection. Due to their unpredictable nature, the Board of County Commissioners deems it necessary, essential and fiscally prudent to maintain a Flex Costs Reserve which will be contained within the designated reserves of the General Fund. Flex Cost Authorization: These costs are specifically determined, designated and budgeted by the Board of County Commissioners throughout the annual budget cycles. Annual budget resources will be determined by the Board of County Commissioners based on the Board's assessment of necessary, essential and fiscally prudent funding levels. Any allocation of these funds is subject to the Board of County Commissioners determinations and prior approvals with regard to the estimated costs of operations as submitted by each department. The Board of County Commissioner's current policy is that the total annual budget resources for allocation must be no less than 80% of the six previous line item years for each respective flex cost. Those allocations may reflect year to year cyclical adjustments within that line item (e.g. election cycle costs). In the event a flex cost line item falls below its annual budgeted amount, those unspent funds will be allocated to and be held in the flex costs reserve account to address future unanticipated and unpredictable flex cost expenditures as determined by the Board of County Commissioners. When an actual flex cost line item exceeds its annual budget projection, the Board of County Commissioners will conduct an assessment of the reasons for the overrun and if the Board determines that this expenditure is necessary, essential and fiscally prudent then the Board may determine to use appropriate resources available to address the annual flex cost overrun. Such resources the Board may choose to utilize include, but are not limited to, the use of: Designated flex costs reserves, general fund available reserves, affected department line item budget adjustments; and/or special funding sources allocated to an affected department or departments within the budgetary control of the Board of County Commissioners. Each flex cost line item is managed by designated departments. If, at any time, a flex cost budget line item is projected to exceed its annual budget, the responsible department shall immediately provide written notification to the Board of County Commissioners. Written notification will include a revised flex cost estimate, a detailed explanation of the causes for the overrun, and proposals for mitigation of the overrun. Flex Costs Reserve: The Board of County Commissioners will determine the necessary, essential and fiscally prudent levels of reserves for designated flex costs within the governmental departments as listed: Law and Justice — Due to the volatile nature of the flex costs in these departments, the Board has determined that a designated reserve of ten percent (10 %) based on the past 6 year historical average is currently necessary, essential and fiscally prudent in the event of any flex cost shortfall. Governmental Services — Due to the less volatile and more consistent nature of the flex costs in these departments, the Board has determined that a designated reserve of five percent (5 %) based on the past 6 year historical average is currently necessary, essential and fiscally prudent in the event of any flex cost shortfall. The Board of County Commissioners will determine based on their assessment of necessary, essential and fiscally prudent funding levels on an annual basis the funds which will be designated for the flex costs reserves. In establishing the funding levels, the Board may choose from a number of potentially available resources. Such resources may include, but are not limited to, the use of: Unspent annual flex cost funds, general fund available reserves, affected department line item budget adjustments; and/or special funding sources allocated to the affected department or departments within the budgetary control of the Board of County Commissioners. • Adopted by Resolution 99 -2006 Public Safety Unfunded $30,051,320 * 51.05% 2005 Actual $0 $32,276,785 * 53.14% 2006 Actual $0 587,673 39.41% 2007 Actual 1 $1,654,221 90,626 38.71% 2008 Actual I $1,851,622 66,856 38.97% 2009 Budget $992,846 Major Minor Functions Functions r-Frr6gra tm Department of Corrections Unfunded Management S21.042,627 ' 7002% 05 A 55,471,083 05A S23.104,014 ' 71.58% 06 A 56.007,043 06A S10,442,334 53.31% 07 A $575,491 .. - $2. 715,007 07A 510,610,550 53.34% 08 A $0 52,758,743 08A 511,001,502 52.72% 09 B $0 ... _ .. B r'S3.080,421 09';B Sheriff Criminal Unfunded Patrol .. Narcotics 54.373,947 14.55 ;, 05 A 53,380.063 05 5576,397 05 A 5224.659 05 A 54.199 13.01 - S 06 A 53.137270 Cs 5685.450 06 A 5242 401 06 A 54.076 20.81= - 07 A $825,730 52,943,590 07 5821,836 07 A 5223,987 07 A 54 21.06 08 A $1,173,181 53.039.035 05 .' 5, 895 08 A 5230.860 08 A 54.152,322 19.90 -, 09 B $688 470 53.083,314 09 1 326 09 B 5244.213 09 B Precursor Detective : serve Officer Program School Resource Officer S98.840 05 A 517,395 05 A 576.593 05 A 588.149 06 A 55,620 06 A 540.541 06 A 581,276 07 A 55.972 07 A 50 07 A 583,030 08 A 56.500 08 A SO 08 A 583.919 09 8 56,550 09 B SO 09 B Administration Salaries Sheriff Administration Unfunded and Benefits Fleet Other Services 51.784.863 5.943. 05 A 5859.964 05 A 5442.389 05 A S89,885 05 A 51 783 322 5.53% 06 A 5856.111 06 A S508 204 06 A 531.111 06 A 52.405.648 12.28% 07 A $45,000 5840.875 07 A 5650.131 07 A 5539 07 A 52.469.672 12.42 % 08 A $282,296 5997,153 08 A 5645,658 08 A 5462.650 08 A 52.880 13.81 °/, 09 B $50 106 5946,955 09 8 5837,682 09 B 5697.214 09 B An Control Enforcement Training 5189,584 05 A 5141.432 05 A 561 05 A 5188 06 A 5140.467 06 A 559.230 06 A 5185,699 07 A 5127.474 07 A S60,720 07 A 5188,072 08 A S124.339 08 A 551,800 08 A 5209 244 09 B 5137.508 09 8 552,202 09 B Sheriff Communications Unfunded Communications 5626 2.09% 05 A 5626.914 05 A 5727.162 2.25% 06 A 5727.162 06A 5682.628 3.48 99 07 A 5682.628 07 A 5690 3.47°/ 08 A $116,493 5590.867 Cs A 5769.436 3.69% 09 13 $99 550 5 9 9.436 - - Sheriff Civil Unfunded Civil Complaints Evidence 5781,089 2.60% 05 A 5255.714 05 A 5149,253 05 A 5105.286 05 A 5819.473 2.54% 06 A 5308.812 06 A 5155,443 06 A 5100.604 06 A 5658.610 3.36% 07 A 5249,320 07 A 5145,303 07 A S92.909 07 A 5682.872 3.43% 08 A $64,073 5287.227 08 A S154,293 08 A 598 08 A 5740,374 3.55% 09 B $44 256 5 - - . 3 09 B 5186,446 0913 S117,431 09 B ..dr ts Criminal History Records 5107278 05 A 551,647 05 A 5111.911 05 A 6 A 549.254 06 A 5102,680 06 A ID 539 07 A 07 A 08 0 542,030 07 A 50 8 A 550.109 09 B 548,523 548,664 09 B BOCC - Other Support Unfunded Emergency Manage -_11 5840.922 2.80°/ 05 A 51.014.426 3.14 99 06 A 545.351 e $47,335 0 5726.258 3.71 % 07 A J7 A 559.110 0 ! ' 5611 877 3.08 / 08 A $0 ,, S A ■ 560,913; 0 5676,663 3.24`/ 09 B $0 39' - %' S62329 - . 0 0 Department of Security Unfunded , 5329,399 1.10% 05 A 5329,399 05 5320,561 0. 99% 06 A 9320.561 06 5310.818 1.59% 07 A $208,000 5310.818 07 A 5342,747 1.72% 08 A $205,088 53x2 c: 5 9 5345. 1 -65% 09 B $110 464 Sheriff Special Operations Unfunded ORV Search and Rescue Dive Team 5271,559 0.90 99 05 A 5163.779 05 A 5106,747 05 A 51.033 05 A 5308,396 0.96'/ 06 A 5177,651 06 A 5129 06 A 51,492 06 A 5284 1.45/ 07 A 5174,105 07 A 5108. 07 A S2.554 07 A 5292,721 1.47% 08 A $10,491 5177 958 08 A 5111,263 08 A 53,500 08 A 5300.730 1.4499 09 B $0 : _ s 09 B 5127, 09 8 93,530 09 B • YAKIMA COUNTY BUDGET PRIORITIES YAKIMA COUNTY BUDGET PRIORITIES 140 1% 3% 1% 1% 1% 14u 19 %_ 44 1 g 1 rl YAKIMA COUNTY BUDGET PRIORITIES 1111 90 146 3 140 � 196 140 24b •