HomeMy WebLinkAbout03/14/2023 03. City Council Retreat Follow Up and Budget Discussion t`ciiC 7mre
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BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No. 3.
For Meeting of: March 14, 2023
ITEM TITLE: City Council Retreat Follow Up and Budget Discussion
SUBMITTED BY: Bob Harrison, City Manager
SUMMARY EXPLANATION:
1) Continuation of downtown conversation. We will have a short review and question
and answer from last meetings public safety presentations. Then we will move to
additional presentations on economic activity, Clean City investment, and ongoing code
enforcement in the downtown area.
2) I have included a memo laying out the format for review of the City budget. The
focus will be on all of the City's services that are funded by the general fund.
ITEM BUDGETED:
STRATEGIC PRIORITY:
APPROVED FOR SUBMITTAL BY THE CITY MANAGER
RECOMMENDATION:
ATTACHMENTS:
Description Upload Date Type
Corer Memo
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MEMORANDUM
To: Honorable Mayor and Members of the Yakima City Council
From: Bob Harrison, City Manager
Date: March 10, 2023
RE: Budget Review
In order to meet the City's goal of financial sustainability, and utilizing the five-year financial
forecast to give us indicators of our financial picture within the model, the City Council is
conducting a comprehensive review of the City's financial policy, tax policy, and review of the
various departments business lines and service levels provided to the community by those
business lines.
There are several ongoing challenges to the City's financial sustainability and resilience. Like
all other organizations and individuals, the City has not been exempt from the impact of inflation
on both the City's capital and operating budgets. Due to underinvestment in the City's
infrastructure, the condition of many aspects of the City's infrastructure and facilities require
investment in the present and near future. State mandates require increasing investments in
the City fleet, buildings, and compensation. There have been increasing demands for City
services in some areas, some as a result of growth, some have dedicated general fund revenue
(Clean City), some are a result of opportunities that federal ARPA funding have provided that
can make lasting and important improvements in the community (MLK aquatic facility).
We also have known future investments that have to be made in the Mill Site redevelopment
and East/West Corridor and a viably funded equipment replacement plan in order to replace the
fleet, rolling stock, and other important needed equipment so the funds are there when needed.
Each department will present to the Council their various business lines and what the outputs
are for that business line. There will be opportunities for conversations on how internal service
departments work and how they support the external service departments. There will be
conversations about level of service and how changes in the level service will impact our
residents in the community.
We will also be discussing current tax policy on revenues. We will examine current revenue
streams from the various segments of the City's tax base. We will also review the impacts of
the various taxes and the tax base on which that tax is imposed upon.
We will also be reviewing how employee compensation works in the State of Washington and
the City's legal (e.g. labor contracts) and state mandated legal requirements (e.g. L&I). Given
the dynamic labor market, it is important for the City to have a competitive wage and
compensation package so we can attract talent and retain our committed workforce.
For well over a decade the City has made across the board cuts and adjustments which pushed
off the problem which has resulted in the structural financial challenges that we are facing now.
As we have focused on our strategic priorities, now is the time to take a comprehensive look at
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services and revenues in order to better align our spending to accomplish those strategic
priorities and eliminate the structural imbalance between revenues and expenses the City has
experienced.
Beginning at the first study session in April, we will start this budget review process and
continue through the balance of the year examining the various aspects of the City's business
services and revenues. A draft study session schedule is provided below.
• TBD—AG's Office re Domestic Terrorism Report
• April 11—Downtown issues continued and Financial policies update
• April 25—Revenues
• May 9—Police (Jail, Services, Animal Control & Parking)
• May 23—Public Works (general fund)
o Parks & Rec (Cemetery, Senior Center, WA Fruit Comm Center& HBCC)
o Streets/Traffic
o Refuse
o Water
o Wastewater
o Engineering
o Transit
o Fleet/Equipment Rental
• June 13—City Manager, Assistant City Manager (Airport, Econ Dev & ONDS, IT), City
Clerk, City Council, Community Relations, Capitol Theatre & Convention Center
• June 27—Fire & SunComm
• July 11—Community Development, Planning and Codes
• July 18—Human Resources, Legal and Finance Dept. (Utility Billing & Purchasing)
• August 8—Municipal Court