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Home My WebLink About10/10/2023 04. Mid-Biennial Budget- Session 1 of 2 1 s^` !% , . a : g BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. 4. For Meeting of: October 10, 2023 ITEM TITLE: Mid-Biennial Budget- Session 1 of 2 SUBMITTED BY: *Bob Harrison, City Manager Rosylen Oglesby, Assistant City Manager/Interim Director of Finance & Budget SUMMARY EXPLANATION: Mid-biennial review and modification of the fiscal biennium budget. This is Session 1 of 2. The next study session will be on October 24, 2023. ITEM BUDGETED: NA STRATEGIC PRIORITY: Public Trust and Accountability APPROVED FOR SUBMITTAL BY THE CITY MANAGER RECOMMENDATION: ATTACHMENTS: Description Upload Date Type D 10.10.23 Power Point Presentation 10/4/2023 Presentation ..,. ,`,� l r n __, _ __ _ _ incOme , _ 2024 Proposed . _ Expenditure4,,p Mid -Biennial Budget , Review & Modification 'kY City Council Study Session October 10, 2023 Overview As part of the two-year budget cycle, a mid-biennial review and adjustment is conducted prior to the end of the first year. This presentation is intended to provide an overview of the proposed revenue and expenditure forecast and its impact on the City's financial reserves in the second year. Pg.2•City Council Study Session • 2024 Proposed Mid-Biennial Budget Review and Modification •October 10,2023 Vision & Mission • To create a culturally diverse, economically vibrant, safe, and strong Yakima community. • To provide outstanding services that meet the community's needs. • To govern responsibly by effectively managing and protecting public resources. • To build trust in government through openness, diverse leadership, and communication . • To strategically focus on enhancing Yakima's quality of life. Pg. 3•City Council Study Session•2024 Proposed Mid-Biennial Budget Review and Modification • October 10,2023 2023 - 2024 Budget Goals • Achieve a balanced budget in every fund . • Assure prioritized services citywide. • Preserve General Fund's reserve, with a goal of 25% of expenditures. • Establish sustainable funding for equipment replacement. • The creation of a 5-year capital budget developed for all funds, including projects within the General Fund . Pg.4• City Council Study Session •2024 Proposed Mid-Biennial Budget Review and Modification •October 10,2023 Yakima Council Strategic Priorities ✓ Public Safety ✓ Fiscal sustainability ✓ Housing ✓ Strengthening Partnership IFC) .,, dr...„,, , Investment in infrastructure ,..... ) CI ) Pg.5•City Council Study Session•2024 Proposed Mid-Biennial Budget Review and Modification •October 10,2023 Proposed 2024 General Fund REVENUES BY SOURCE EXPENDITURES BY CATEGORY $76,716,333 $75,756,790 Fines&Forf, Other Taxes& Licenses&Permits Transfers,Misc Assessments 3% 5% Capital Outlays Debt Service Transfers 2% 0.1% 22.2% 2.9% Intergovernmental Revenues S% Services&Payments 13.3% Charges for Sales Tax Services 39.3% 4% Supplies-Cons& Resale 2.8% Salaries&Wages Property Tax 58.4% 11% Personnel Benefits 41111111111,111 F461'.- 22.2% Utility&Franchise Taxes 31% Pg.6•City Council Study Session •2024 Proposed Mid-Biennial Budget Review and Modification •October 10,2023 j i ; General Fund Forecast (With Transfers) 2021 2022 2023 2024 2025 2021, 2027 Actual Actual YE Est Amended Projected Projected Projected Beginning Balance $ 13,295,597 $ 15,273,951 $ 12,579,13139 $ 9,059,412 $ 10,018,955 $ 8,911,700 $ 5,563,987 Revenues Sales Tax 27,149,846 27,843,631 28,880,497 30,183,000 31,390,320 32,645,933 33,951,770 Utility&Franchise Taxes 19,070,610 20,505,532 21,542,882 23,999,783 24,479,779 24,969,375 25,468,763 Property Tax 8,967,221 9,066,584 9,005,763 8,807,406 8,983,554 9,163,22-5 9,346,490 Charges for Services 3,470,07E 2,871,331 3,087,586 3,130,502 3,193,112 3,256,979 3,322,113 Intergovernmental Revenues 3,697,113 4,485,636 3,870,363 3,497,875 3,567,1333 3,639,190 3,711,974 Other Taxes&Assessments 1,273,990 1,309,217 1,207,100 1,260,389 1,285,597 1,311,309 1,337,535 Licenses&Permits 1,711,245 1,796,136 1,895,786 1,921,200 1,959,624 1,998,816 2,038,792 Fines&Forf,Transfers,Misc 4413,730 870,188 4,054,692 3,916,178 3,994,502 4,074,392 4,155,880 Total Revenues 65,788,833 68,748,255 73,544,669 76,716,333 78,854,321 81,059,214 83,333,317 Expenditures Salaries&Wages 37,804,313 40,738,000 43,417,335 44,231,710 46,885,613 49,698,750 52,680,675 Personnel Benefits' 13,070,709 13,451,287 16,441,221 16,835,098 17,845,204 18,915,916 20,050,871 Supplies-Cons&Resale 1,630,847 2,093,296 2,257,200 2,089,199 2,172,767 2,259,678 2,350,065 Services&Payments' 8,747,125 12,058,524 12,172,440 10,109,674 10,514,061 10,934,623 11,372,008 Capital Outlays 261,107 776,942 376,898 100,000 105,000 110,250 115,763 Debt Service 206,540 206,390 206,233 166,852 170,189 173,593 177,065 Transfers` 2,089,838 2,117,878 2,193,819 2774,257 2,268,742 2,314,117 2,360,399 Total Expenditures 63,810,479 71,442,317 77,065,146 75,756,790 79,961,576 84,406,927 89,106,846 Est End Fund Balance $ 15,273,951 $ 12,579,889 $ 9,059,412 $ 10,018,955 $ 8,911,700 $ 5,563,987 (209,542) Policy Rsv Amt-16.7% S 10,656,350 5 11,930,867 $ 12,869,879 5 12,651,384 $ 13,353,583 $ 14,095,957 $ 14,1380,843 Net Fund Balance 5 4t,17,(,o1 5 i,49,O22 $ (3,810,4t7) S 1,2,u32,4291 $ (4,441,883) $ (8,531,970( S 115,1,90,385) Pg.7 •City Council Study Session •2024 Proposed Mid-Biennial Budget Review and Modification •October 10,2023 Fund Balance vs . Policy Reserve Amount (General Fund Only) FUND BALANCE VS. POLICY RESERVE AMOUNT $20,000,000 515,000,000 _ ---� $10,000,000 $5,000,000 ($5,000,000) 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Actual Actual Actual Actual Actual Actual Actual YE Est Budget Projected Projected Projected -110- Ending Fund Balance -11-- Policy Ksv Amt - 16.7'.. Pg.8•City Council Study Session •2024 Proposed Mid-Biennial Budget Review and Modification •October 10,2023 `j, Ner Proposed 2024 Citywide Revenue & Expenditures REVENUES BY SOURCE EXPENDITURES BY CATEGORY $268,597,419 $274,456,001 Transfers,6.9% Fines&Forf, Transfers,Misc, Sales Tax,15.3% Debt Service,2.8% 22.6% Salaries&Wages, 26.8% Utility&Franchise Licenses& Taxes,9.7% Capital Outlays,16.4 Permits,1.3% Other Taxes& Assessments,2.6% J"m,' Personnel Benefits, Property Tax,8.9% 16.4% �}a.x gi#c rr Services&Payment, + 27.0% �I Intergovernmental tf, � ' � {" ; Revenues,16.6% '1 , a "9 ' 14"' Charges for Supplies-Cons& Services,22.9% Resale,3.7% Pg.9•City Council Study Session•2024 Proposed Mid-Biennial Budget Review and Modification •October 10,2023 Citywide Forecast 2021 2022 2023 2024 2025 2026 2027 Actual Actual YE Est Amended Projected Projected Projected Beginning Balance $ 124,121,259 $ 133,867,128 $ 132,324,609 $ 110,320,269 $ 104,961,687 $ 90,929,025 $ 69,176,498 Revenues Sales Tax 37,721,932 38,848,987 39,773,497 41,181,000 42,828,240 44,541,370 46,323,025 Utility Sr Franchise Taxes 20,185,211 22,056,133 23,118,210 26,176,635 26,700,168 27,234,171 27,778,854 Property Tax 21,723,187 21,974,766 22,919,530 23,942,139 24,420,982 24,909,402 25,407,590 Charges for Services 57,238,914 59,217,781 59,409,825 61,633,234 62,865,899 64,123,217 65,405,681 intergovernmental Revenues 40,743,387 32,736,542 68,053,178 44,558,905 45,450,083 46,359,085 47,286,267 Other Taxes&Assessments 7,250,080 7,884,336 6,879,419 7,096,712 7,238,646 7,383,419 7,531,087 Licenses&Permits 3,073,151 3,157,085 3,376,671 3,402,085 3,470,127 3,539,530 3,610,321 Fines&Fort,Transfers,Misc 55,117,731 63,140,341 59,382,514 60,606,709 61,212,776 61,829,904 62,443,153 Total Revenues 243,053,093 249,015,971 282,912,844 268,597,419 274,186,921 279,915,098 285,785,978 Expenditures Salaries&Wages 61,175,233 64,424,137 73,013,500 73,526,559 77,938,153 82,614,442 87,571,309 Personnel Benefits' 36,896,845 37,987,958 43,756,399 44,881,138 47,574,006 50,428,446 53,954,153 Supplies-Cons&Resale 7,120,799 9,516,657 10,575,939 10,283,160 10,694,486 11,122,265 11,567,156 Services&Payments® 56,400,951 62,313,827 75,417,468 74,198,381 77,166,316 130,252,969 83,463,088 Custodial Outlays 4,911,591 4,247,961 — — — — — Capital Outlays 43,091,731 41,224,432 74,596,537 44,950,751 47,198,289 49,558,203 52,036,113 Debt Service 9,737,853 9,064,306 9,128,254 7,597,435 7,749,384 7,904,372 8,062,459 Transfers 13,972,221 21,779,212 18,429,087 19,018,577 19,398,949 19,786,9213 20,182,667 Total Expenditures 233,307,224 250,558,490 304,917,189 274,456,001 287,719,583 301,667,625 316,336,945 Est End Fund Balance $ 133,1367,128 $ 132324,6(19 $ 110 320,269 $ 104,461,687 $ 90,929,025 $ 69,176,998 $ 38,625,531 Policy RsvAmt-16.7". 5 389,52_.301, S 41,111.3,268 $ 30,921,170 $ 45,834,132 5 18,019,1711 $ 30,378,193 5 52,828,270 Net Fund Balance 5 94,904,822 $ 90,481,341 5 59,399,099 $ :38,627,33+ 5 12,879,8 5 18,798,005 5 (14,202,7391 Pg.10•City Council Study Session•2024 Proposed Mid-Biennial Budget Review and Modification •October 10,2023 Fund Balance vs . Policy Reserve Amount (All Citywide Funds) FUND BALANCE VS. POLICY RESERVE AMOUNT $150,000,000 ._____---0-----. :=-1111---0-----1.0------1111L---11--------,8 $100,000,000 0--------. • • $50,000,000 • • • • • • $,-- 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Actual Actual Actual Actual Actual Actual Actual YE Est AmendedProjected Projected Projected -0- Ending Fund Balance -0- Policy Rsv Aunt- 16.7% Pg.11 • City Council Study Session • 2024 Proposed Mid-Biennial Budget Review and Modification •October 10,2023 •opor 2024 Citywide Reserve Balance Summary (With Transfers) 2023 2024 Projected %of Amended Amended Ending R.of End Balance Exp Revenues Expenditures Balance Exp General Fund $ 9,059,412 11.8 % $ 76,716,333 $ 75,756,790 $ 10,018,955 13 2 % Parks and Recreation 503,495 8.2 % 7,042,806 6,758,589 787,712 11.7 % Street&Traffic Operations 1,241,799 20.2% 6,615,518 6,753,842 1,103,475 16.3 % General Government Subtotal 10,804,706 12.1 % 90,374,657 89,269,221 11,910,142 13.3 % Other Gov't Operating Funds 6,853,715 24.2% 29,536,351 29,560,370 6,829,696 23.1 % Government Capital Funds 13,119,536 42.9 `)/o 16,691,461 18,032,299 11,778,698 65.3 % Enterprise Operating Funds 40,408,771 59.5 % 67,269,972 71,546,093 36,132,650 50.5 % Enterprise Capital Funds 20,411,591 47.6"h, 23,833,069 23,515,998 20,728,662 88.1 % Internal Service Funds 3,356,123 24.0% 10,827,190 11,114,578 3,068,735 27.6 % Employee Benefit Reserve 5,899,572 32.0% 20,443,592 19,040,358 7,302,806 38.4 % Risk Management Reserves 5,422,562 82.7% 4,546,286 7,352,242 2,616,606 35.6 % Debt Service&Agency Funds 4,043,693 58.3 % 5,074,841 5,024,842 4,093,692 81.5 % Total $ 110,320,269 36.2(Y. $ 268,597,419 S 27-1,456,001 $ 104,461,687 38.1 % Pg.12•City Council Study Session•2024 Proposed Mid-Biennial Budget Review and Modification •October 10,2023 \Now' Budget Cuts Implemented Department Budget Cuts Implemented per Council Position Affected Cost Reduction Police Eliminate Third Captain Position 1-Police Captain Position $ - Police Eliminate in-Home Detention Program 1 -Corrections Administrative Specialist Position $ 93,459 Police Eliminate Services Manager 1-Services Manager Position $ 156,968 SUNCOMM Eliminate Vacant Telecommunicator Positions 2-Vacant Positions $ 182,776 Planning Eliminate Vacant Senior Planner Position 1-Vacant Position $ 103,065 City Manager/ED Eliminate Vacant Grant Writer Position 1-Vacant Position $ 81,606 City Manager/ED Eliminate Promotion of various downtown events $ 10,000 City Manager/ED Eliminate funding for Miller Park concerts and Viva LaMusica @ Franklin $ 45,000 IT Elimination of Printer Support Contract - $ 20,000 City Clerk Eliminate Records Assistant Position 1-Records Assistant Position $ 75,091 Community Relations Eliminate Vacant Community Outreach Specialist 1-Vacant Position $ 88,600 PW-City Hall Eliminate Temporary Custodial Staff Temporary Staff $ 13,000 PW-City Hall Reduce Contractor Repair&Maintenance Funding for HBCC - $ 10,000 PW-City Hall Reduce Contractor Repair&Maintenance Funding for City Hall - $ 20,000 PW-Engineering Eliminate vacant Design Engineer Position 1-Vacant Position $ 78,134 Continue to Underfill Design Engineer Position with Development PW-Engineering Engineer $ 5,500 PW-Streets&Traffic Eliminate vacant Streets Operation Lead Position 1-Vacant Position $ 118,000 Move Traffic Technician II Position to Engineering/Remove from PW-Streets&Traffic General Fund - $ 53,800 Pg. 13•City Council Study Session• 2024 Proposed Mid-Biennial Budget Review and Modification •October 10,2023 Budget Cuts Implemented continued . . . . Department Budget Cuts Implemented per Council Position Affected Cost Reduction Human Resources Senior Human Resources Specialist 1-Vacant Position $ 123,860 Finance Eliminate Financial Services Technician Position 1-Financial Services Technician Position $ 48,149 Finance Reallocate the Director and Assistant's salary allocation - $ 29,099 Finance Eliminate Salaries Temporary - $ 20,382 Finance Eliminate Overtime - $ 2,000 Finance Reduce Fiduciary Services and Miscellaneous expenses - $ 18,896 Purchasing Eliminate.5 Purchasing Assistant Role 1-0.5 FTE Purchasing Assistant Role $ 33,394 Legal Vacant Civil Attorney Position 1-Vacant Position $ 172,857 Legal Vacant Rule 9 Summer Intern 1-Vacant Position $ 17,312 Municipal Court Cancel water delivery contract - $ 2,210 Municipal Court Court Administrator Salary Savings - $ 43,744 Municipal Court Eliminate Court Assistant Position 1-Vacant Position $ 97,341 $ 1,774,244 True impact to the General Fund : approx. $1 .4 million Pg.14•City Council Study Session 2024 Proposed Mid-Biennial Budget Review and Modification •October 10,2023 Available Tax/Fee Revenue Options Type of Revenue YES NO Current Rate-COY Business&Occupation(B&O)Tax X Not imposed Admission Tax X Not imposed Impact Fees X Not imposed Utility Tax(Sewer, Solid waste,, Stormwater,Water) X No limit prescribed by State or Federal Law Free parking,then fines go into effect after Time Traffic and Parking Fines X Limit expires Transportation Benefit District Sales Tax X Not imposed Transportation Benefit District(TBD) Vehicle tabs X $20 vehicle license fee; can increase to$40 Other Options YES NO Notes Regional Fire Authority X Requires majority vote of participating districts Metropolitan Park District X Requires majority vote of Yakima Residents Levy Lid Lift X Requires majority vote of Yakima Residents Pg.15•City Council Study Session•2024 Proposed Mid-Biennial Budget Review and Modification •October 10,2023 .) Utility Taxes (Water, Sewer, Solid Waste, Stormwater) • Water, 20°/0 • Sewer 20% • Solid Waste 20°/o • Stormwater, 15% : = • No rate limit prescribed by State/Federal nousehold wastewater lta+IQt,5 k etCa _ � law Pg. 16•City Council Study Session•2024 Proposed Mid-Biennial Budget Review and Modification •October 10,2023 i, ', Potential Utility Tax Increase rCurrent Potential Potential 2024 Increase In lieu Taxes Department Rate 2024 Utility Tax Department Rate Utility Tax in Departments Water 20% $ 2,502,200 Water 24.5% $ 3,065,195 $ 562,995 Wastewater 20% $ 4,808,825 Wastewater 24.5% $ 5,890,810 $ 1,081,986 Refuse-General Fund 15% $ 1,437,221 Refuse-General Fund 20% $ 1,916,294 $ 479,074 Refuse-Clean City 5% $ 479,074 Refuse-Clean City 5% $ 479,074 $ - Stormwater 15% $ 609,662 Stormwater 15% $ 609,662 $ - $ 9,836,980 Wastewater-Aquatic Funding 0.5% $ 120,221 $ 120,221 Water-Aquatic Funding 0.5% $ 62,555 $ 62,555 Household Impact Stormwater-Aquatic Funding 10% $ 406,441 $ 406,441 Monthly Increase: $ 12,550,251 $ 2,713,271 • Water (15ccf): $1.49 • Wastewater (6ccf): $1.77 • Refuse: $2.08 Potential Increase to: General Fund $ 2,124,054 Annual Increase: Capital & Operating Budget for the Aquatic Fund $ 589,217 • Stormwater: $7.92 $ 2,713,271 Pg.17•City Council Study Session •2024 Proposed Mid-Biennial Budget Review and Modification •October 10,2023 =� c General Fund Forecast (With Transfers) 2021 2022 2023 2024 2025 2026 2027 Actual Actual YE Est Amended Projected Projected Projected Beginning Balance $ 13,295 597 $ 15,273,951 $ 12,579,889 $ 9,059,412 $ 10,018,955 $ 8,911,700 $ 5,563,987 Revenues Sales Tax 27,149,846 27,843,631 28,880,497 30,183,000 31,390,320 32,645,933 33,951,770 Utility&Franchise Taxes 19,070,610 20,505,532 21,592,882 23,999,783 24,979,779 24,969,375 25,469,763 Property Tax 8,967,221 9,066,584 9,005,763 8,807,406 8,983,554 9,163,225 9,346,490 Charges for Services 3,470,078 2,871,331 3,087,586 3,130,502 3,193,112 3,256,974 3,322,113 Intergovernmental Revenues 3,697,113 4,4115,636 3,870,363 3,497,875 3,567,833 3,639,190 3,711,974 Other Taxes&Assessments 1,273,990 1.,309,217 1,207,100 1,260,389 1,285,597 1,311,309 1,337,535 Licenses&Permits 1,711,245 1,796,136 1,895,786 1,921,200 1,959,624 1,9911,816 2,038,792 Fines&Fort,Transfers,Misc 448,730 870,188 4,059,692 3,916,178 3,994,502 4,074,392 4,155,880 Total Revenues 65,788,833 68,748,255 73,544,669 76,716,333 78,854,321 81,059,214 83,333,317 Expenditures Salaries&Wages 37,804,313 40,738,000 43,417,335 44,231,710 46,885,613 49,698,750 52,680,675 Personnel Benefits' 13,070,709 13,451,287 16,441,221 16,835,098 17,845204 18,915,916 20,050,871 Supplies-Cons&Resale 1,630,847 2,093,296 2,257,200 2,0139,199 2,172,767 2,259,678 2,350,065 Services&Payments' 8,747,125 12,058,524 12,172,940 10,109,679 10,514,061 10,934,623 1.1,372,003 Capital Outlays 261,107 776,942 376,898 100,030 105,000 110,250 115,763 Debt Service 206,540 206,390 206,233 166,852 170,189 173,593 177,065 Transfers' 2,089,838 2,117,878 2,193,819 2,224,257 2,268,742 2,314,117 2,360,399 Total Expenditures 63,810,479 71,442,317 77,065,146 75,756,790 79,961,576 84,406,927 89,106,846 Est End Fund Balance $ 15,273,951 $ 12,579,889 $ 9,059,4(f $ 10,018,955 8,911,700 $ 5,563,987 $ (209,542) Policy Rsv Amt-16.7% 5 10,656,350 $ 11,930,867 $ 12,869,8799 $ 12,651,384 $ 13,353,583 $ 14,095,957 $ 14,880,843 Net Fund Balance $ 4,617,601 $ 649,022 $ (3,810,467) $ (2,632,429) $ (4,441,883) $ (8,531,970) $ (15,090,385) Pg.18•City Council Study Session•2024 Proposed Mid-Biennial Budget Review and Modification •October 10,2023 3 Admission Tax psom1-1 • Tax on admission charged for various facilities and events• Theatres • Dance Halls • Other activities where an admission is charged • Exemptions • Tax rate — no greater than 5% • r7S' • Unrestricted Revenue Pg. 19•City Council Study Session• 2024 Proposed Mid-Biennial Budget Review and Modification •October 10,2023 Y`' Potential Admission Tax 5% of prior years' spending Admission charges collected in The City of S94,000.00 Yakima $1,880,000 $93.000.00 $1,860,000 $92,uuu.00 $1,840,000 --- $91,000.00 $1,820,000 — $90,000.00 $1,800,000 $89,000.00 588,000.00 $1,780,000 $1,760,000 $1,740,000 $87,000.00 $1,720,000 - 586,000.00 $1,700,000 $85,000.00 2021 2022 2021 2022 Pg.20•City Council Study Session• 2024 Proposed Mid-Biennial Budget Review and Modification •October 10,2023 Impact Fees • Fee charged to developers to mitigate the impacts from a new development • Revenues are restricted • Cities planning under the Growths Management Act (GMA) can imposed • Transportation - , �,h"`..! 4e.At h • Parks A • Fire -. . • Spend within 10 years of receipt • Does not require voter approval .. Pg.21•City Council Study Session • 2024 Proposed Mid-Biennial Budget Review and Modification •October 10,2023 Potential Impact Fees Rates are based on another Washington City for demonstration purposes only ITE Land District"A" District"B" District"C" District"D" #of Permits Land Use Use Code Unit of Measure Fee per unit Fee per Unit Fee per Unit Fee per Unit Units Issued COST PER TRIP Residential Single Family&Duplex 210 dwelling $ 105.41 $ 866.87 $ 1,230.23 $ 724.25 172 154 Multi-Family 1-2 level 220 dwelling $ 74.25 $ 610.59 $ 866.52 $ 510.13 18 5 Multi-Family 3-10 level 221 dwelling $ 48.76 $ 400.98 $ 569.06 $ 335.01 0 - ADU - dwelling $ 48.76 $ 400.98 $ 569.06 $ 335.01 4 4 Multi Family Low-Income - dwelling $ 44.33 $ 364.53 $ 517.33 $ 304.56 54 1 Nursing Home 254 bed $ 24.30 $ 199.82 $ 283.58 $ 166.95 0 Continuing Care Retirement 255 dwelling $ 13.41 $ 110.25 $ 156.46 $ 92.11 0 - Assisted Living 620 bed $ 18.43 $ 151.59 $ 215.13 $ 126.65 18 1 Commercial-Services Hotel(3 Levels or More) 310 room $ 70.70 $ 581.39 $ 825.10 $ 485.74 74 1 Hotel/Motel 320 room $ 56.32 $ 463.14 $ 657.28 $ 387.00 0 - Movie Theater 444 sq ft/GFA $ 0.20 $ 1.68 $ 2.38 $ 1.40 0 - Health Club 492 sq ft/GFA $ 0.25 $ 2.02 $ 2.87 $ 1.69 0 - Day Care 565 sq ft/GFA $ 0.50 $ 4.11 $ 5.84 $ 3.44 15,698 2 Bank 912 sq ft/GFA $ 0.55 $ 4.50 $ 6.39 $ 3.76 0 - Commercial-Institutional Elementary School 520 sq ft/GFA $ 0.05 $ 0.45 $ 0.64 $ 0.38 0 - Middle School 522 sq ft/GFA _$ 0.04 $ 0.31 $ 0.44 $ 0.26 0 - High School 530 sq ft/GFA $ 0.05 $ 0.37 $ 0.53 $ 0.31 0 - University/College 550 ASF $ 0.06 $ 0.49 $ 0.70 $ 0.41 0 - Religious Institute 560 sq ft/GFA $ 0.05 $ 0.41 $ 0.58 $ 0.34 0 - Library 590 sq ft/GFA $ 0.33 $ 2.72 $ 3.86 $ 2.27 0 - Hospital 610 sq ft/GFA $ 0.11 $ 0.92 $ 1.31 $ 0.77 0 - Pg.22•City Council Study Session •2024 Proposed Mid-Biennial Budget Review and Modification •October 10,2023 . '.4 Potential Impact Fees continued . . . . Rates based on another Washington City for demonstration purposes only ITE Land District"A" District"B" District"C" District"D" #of Permits Land Use Use Code Unit of Measure Fee per unit Fee per Unit Fee per Unit Fee per Unit Units Issued Commercial-Administrative Office Veterinary Clinic 640 sq ft/GFA $ 0.46 $ 3.78 $ 5.36 $ 3.16 0 - General Office 710 sq ft/GFA $ 0.16 $ 1.29 $ 1.83 $ 1.08 0 - Medical Office/Clinic 720 sq ft/GFA $ 0.35 $ 2.86 $ 4.05 $ 2.39 0 - Office Park 750 sq ft/GFA $ 0.16 $ 1.28 $ 1.82 $ 1.07 0 - Commercial-Retail Free-Standing Discount Supers 813 sq ft/GFA $ 0.16 $ 1.35 $ 1.92 $ 1.13 0 - Specialty Retail Center 826 sq ft/GFA $ 0.09 $ 0.77 $ 1.10 $ 0.65 3,256 1 Hardware/Paint Store 816 sq ft/GFA $ 0.17 $ 1.38 $ 1.96 $ 1.15 0 - Nursery/Garden Center 817 sq ft/GFA $ 0.31 $ 2.52 $ 3.58 $ 2.11 0 - Shopping Center 820 sq ft/GFA $ 0.14 $ 1.15 $ 1.64 $ 0.96 0 - Car Sales-New/Used 841 sq ft/GFA $ 0.21 $ 1.71 $ 2.42 $ 1.43 924 1 Tire Store 848 Service bay $ 183.71 $ 1,510.75 $ 2,144.01 $ 1,262.20 0 - Supermarket 850 sq ft/GFA $ 0.36 $ 2.95 $ 4.19 $ 2.46 0 - Convenience Market 851 sq ft/GFA $ 0.81 $ 6.68 $ 9.48 $ 5.58 6,200 1 Pharmacy 881 sq ft/GFA $ 0.25 $ 2.09 $ 2.97 $ 1.75 0 - Furniture Store 890 sq ft/GFA $ 0.01 $ 0.11 $ 0.16 $ 0.10 0 - Quick Lubrication Vehicle Shoc 941 Service bay $ 299.26 $ 2,461.01 $ 3,492.60 $ 2,056.13 0 - Auto Parts&Service Center 943 sq ft/GFA $ 0.23 $ 1.85 $ 2.63 $ 1.55 42,000 1 Service Station/Minimart/Caren 853 VFP $ 309.27 $ 2,543.25 $ 3,609.31 $ 2,124.84 12 1 Industrial Light Industry/High Technology 110 l sq ft/GFA $ 0.13 $ 1.08 $ 1.53 $ 0.90 0 - HeavyIndustrial 120 f sq ft/GFA $ 0.09 $ 0.76 $ 1.07 $ 0.63 0 - Pg.23•City Council Study Session 2024 Proposed Mid-Biennial Budget Review and Modification •October 10,2023Iclj Potential Impact Fees continued . . . . Rates based on another Washington City for demonstration purposes only ITE Land District"A" District"B" District"C" District"D" #of Permits Land Use Use Code Unit of Measure Fee per unit Fee per Unit Fee per Unit Fee per Unit Units Issued Manufacturing 140 sq ft/GFA $ 0.10 $ 0.81 $ 1.15 $ 0.68 0 - Warehousing 150 sq ft/GFA $ 0.04 $ 0.36 $ 0.50 $ 0.30 0 - Mini-Storage 151 sq ft/GFA $ 0.02 $ 0.18 $ 0.26 $ 0.15 0 - Commercial-Restaurant Drinking Establishment 925 sq ft/GFA $ 0.41 $ 3.38 $ 4.79 $ 2.82 0 Quality Restaurant 931 sq ft/GFA $ 0.39 $ 3.25 $ 4.61 $ 2.71 5,680 2 High Turnover Restaurant 932 sq ft/GFA $ 0.40 $ 3.28 $ 4.66 $ 2.74 0 - Fast Casual - sq ft/GFA $ 0.66 $ 5.47 $ 7.76 $ 4.57 0 - Fast Food Restaurant 934 sq ft/GFA $ 0.99 $ 8.10 $ 11.50 $ 6.77 0 - Coffee Shop with Drive-Thru 937 sq ft/GFA $ 0.39 $ 3.17 $ 4.50 $ 2.65 0 - $ 56,563.94 $ 463,833.22 $ 658,565.24 $ 379,527.80 Estimated revenue: $1 .6 million Pg.24•City Council Study Session •2024 Proposed Mid-Biennial Budget Review and Modification •October 10,2023 9 Levy Lid Lift • Voters are required to " lift" the total levy amount collected from the current assessed valuation by more than 1 % ( ROW 84 . 55 . 050 ) . • Can be used for any purpose but cannot exceed the maximum statutory rate . • Two Types : Single-Year & Multi-Year. Pg.25 • City Council Study Session • 2024 Proposed Mid-Biennial Budget Review and Modification •October 10,2023 _K� Levy Lid Lift: Single-Year SINGLE-YEAR TEMPORARY LEVY LID LIFT SINGLE-YEAR PERMANENT LEVY LID LIFT Resumes 1%annual increase for number Levy-cuff"levy reverts 1%annual increase going forward,never expires of years specified in ballot measure to what It would have __- —. .._ i One-time"bump' I been without the fid lilt v One-time"bump' n. exceeds 1%annual limit t -- _ n exceeds 1%annual limit > c I a a o io — O m FEIiiIlIIII N LL Con Ire Vet F.. :.i..r..._.1 r:iuxlmum levy...^..per8100, ,.....- U Without lid hfi llu annua,increase plus-acid-ons"1 5g With lid Id! Can never exceed statutory maximum levy rote per$1.000 csscsseo ealdu III Without lid lift 11%annual Increase plus"add-ons l U With lid lift Source: MRSC ittps://mrsc.orq/explore-topics/finance/revenues/levy-lid-lift#multi Pg.26•City Council Study Session• 2024 Proposed Mid-Biennial Budget Review and Modification •October 10,2023Nor Levy Lid Lift: Multi -Year MULTI-YEAR PERMANENT LEVY LID LIFT MULTI-YEAR TEMPORARY LEVY LID LIFT Levy increases more than 1%annually(up 1%annual increase going Levy increases more than 1%annually(up to limit factor specified in ballot measure) forward,never expires to limit factor specified in ballot measure) for up to 5 additional years __. __. for up to 5 additional years il r '-- - -- ' - ii Levy"cliff.levy reverts o to what tt would have c I o been without the lid IMI a c n a -�+ O O. ti Initial"bump"exceeds o ° Initial"bump"exceeds c y 1%annual limit o 1%annual limit I. = I o F.'„ 4 0 5 m i,i hPm 4amm & 3 o rn r N Zv ry d ry D -92 Can never exceed statutory maximum levy rate per$1000 assessed value Can never exceed statutory maximum levy rate ry 31 i100 assessed value NI Without lid lift(1%annual increase plus"add-ons") ,With lid lift NI Without lid lift(1%annual Increase plus"add-ons") s With lid Ilft Source: MRSC ottps://mrsc.org/explore-topics/finance/revenues/levy-lid-lift#multi Pg.27•City Council Study Session•2024 Proposed Mid-Biennial Budget Review and Modification •October 10,2023Now How much more will it cost for a Levy Lid Lift? ild Assessed Value Tax Rate Tax$ Assessed Value Tax Rate Tax$ $875,000 3.325 $2,909.38 $327,000 3.325 $1,087.28 $875,000 2.066 $1,807.75 $327,000 2.066 $ 675.58 $1,102.25 Yearly difference $ 411.69 Yearly difference $ 91.85 Monthly difference $ 34.31 Monthly difference $ 3.02 Daily difference $ 1.13 Daily difference Estimated revenue: $13 million Pg.28• City Council Study Session • 2024 Proposed Mid-Biennial Budget Review and Modification •October 10,2023 p` Recap/Highlights • 2024 Budget: • Citywide Estimates: • Revenue - $268.6 M • Expenditures - $274.5 M • Project Fund Balance Use: $5.9 M (Capital Projects) • General Fund Estimates : • Revenue - $76.7 M • Expenditures - $75.8 M • Project Fund Balance Use: $0 Pg.29•City Council Study Session • 2024 Proposed Mid-Biennial Budget Review and Modification • October 10,2023 141 Recap/Highlights continued. . . . • Proposed Utility Tax Increases: • 5% : Water, Sewer, and Solid Waste • 10% : Stormwater • Revenue - $2.7 M • Expenditures - $2.1 M General Fund ; $589K for Aquatics • Other Revenues Estimates: • Admission - $93 K • Impact Fees - $1 .6 M • Levy Lid Lift: $13 M Pg.30•City Council Study Session • 2024 Proposed Mid-Biennial Budget Review and Modification •October 10,2023 Key Dates !" r., , .. Ca\eccav il Oct 10 Presentations to City Council UMW $3 WM:1m INUAStott*r•asnrn ',km ,u,, •, 24 Presentations to City Council 1 2 1 7 Public Hearing and Ordinances on Ad Valorem Tax Rate 1 % c 14 7 Budget Public Hearing v 16 �� Nov 21 Budget Public hearing 14 '15 .yam 14 Council passes Budget Ordinances adopting Budget and 13 14 15 /".•. 21 tax rate and last month of actuals for audit prep 20 21 21- 1 Pg.31 •City Council Study Session •2024 Proposed Mid-Biennial Budget Review and Modification •October 10,2023 tIT. 711