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Home My WebLink About10/24/2023 03. Mid-biennial Budget- Session 2 of 2 1 ,,t_,,,s,..../..,,* a ,::i , . • :.•...-_,:,1:: a BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. 3. For Meeting of: October 24, 2023 ITEM TITLE: Mid-biennial Budget- Session 2 of 2 SUBMITTED BY: Bob Harrison, City Manager Rosylen Oglesby,Assistant City Manager SUMMARY EXPLANATION: Mid-biennial review and modification of the fiscal biennium budget. ITEM BUDGETED: NA STRATEGIC PRIORITY: Public Trust and Accountability APPROVED FOR SUBMITTAL BY THE CITY MANAGER RECOMMENDATION: ATTACHMENTS: Description Upload Date Type ❑ Mid-Biennial Budget: General Fund 10/20/2023 Goer Memo ❑ 10/19/2023 Backup Material . 1 CM1 IE 1s S Proposed0 2 24 0 hi_ . Mid -Biennial Budget BUDGET PLANNING • Review & Modification r ...1.- ti i - • . TPart 2 __ _ ,... _ ,_.., _. _ iiiiiit,„ _ . City Council Study Session ii "Tilw _' I , __- er.... tilt October 24, 2023 Overview This presentation is a continuation of the discussion for the mid-biennial review 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—Part 2 • October 24, 2023 `�' General Fund Forecast (With Transfers) (October 10, 2023) 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 21,542,882 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 9,163,225 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 4,485,636 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 1,998,816 2,038,792 Fines&Forf,Transfers,Misc 448,730 870,188 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 Benefits2 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 3 8,747,125 12,058,524 12,172,440 10,109,674 10,514,061 10,934,623 11,372,008 CapitalOutlays 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 5 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 $ 9,059,412 $ 10,018,955 $ 8,911,700 $ 5,563,987 (209,542) Policy Rsv Amt-16.7% $ 10,656,350 $ 11,930,867 $ 12,869,879 $ 12,651,384 $ 13,353,583 $ 14,095,957 $ 14,880,843 Net Fund Balance H 4,617,601 $ 649,022 $ (3,810,467) $ (2,632,429) $ (4,441,883) $ (8,531,970) $ (15,090,385) Pg. 3 • City Council Study Session • 2024 Proposed Mid-Biennial Budget Review and Modification—Part 2 • October 24, 2023 `�' 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 $ 9,071,880 $ 7,407,370 $ 3,613,581 $ (2,484,797) 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 $ 21,875,730 $ 22,313,245 $ 22,759,510 $ 23,214,700 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 $ 4,485,636 $ 3,993,825 $ 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 $ 1,998,816 $ 2,038,792 Fines&Forf,Transfers,Misc $ 448,730 $ 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 $ 73,668,131 $ 74,592,280 $ 76,687,787 $ 78,849,349 $ 81,079,254 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 $ 16,443,540 $ 16,835,098 $ 17,845,204 $ 18,915,916 $ 20,050,871 Supplies-Cons&Resale $ 1,630,847 $ 2,093,296 $ 2,253,613 $ 2,089,199 $ 2,172,767 $ 2,259,678 $ 2,350,065 Services&Payments $ 8,747,125 $ 12,058,524 $ 12,161,240 $ 10,609,674 $ 11,034,061 $ 11,475,423 $ 11,934,440 Capital Outlays $ 261,107 $ 776,942 $ 500,360 $ 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 $ 2,224,257 $ 2,268,742 $ 2,314,117 $ 2,360,399 Total Expenditures $ 63,810,479 $ 71,442,317 $ 77,176,140 $ 76,256,790 $ 80,481,576 $ 84,947,727 $ 89,669,278 Est End Fund Balance $ 15,273,951 $ 12,579,889 $ 9,071,880 $ 7,407,370 $ 3,613,581 $ (2,484,797) $(11,074,821) Policy Rsv Amt-16.7% $ 10,656,350 $ 11,930,867 $ 12,888,415 $ 12,734,884 $ 13,440,423 $ 14,186,270 $ 14,974,769 Net Fund Balance $ 4,617,601 $ 649,022 $ (3,816,535) $ (5,327,514) $ (9,826,842) $(16,671,067) $(26,049,5901 'Revenue is projected at 2%growth in all revenues except Sales Tax,which is shown at 4%. 2Salaries and benefits are projected at 6%growth to provide for labor contract agreements and minimum wage increases. Supplies and Services and Payments have a growth factor of 4%. Capital Outlays, projected at 5%growth, provides for a systematic methodology to replace and repair City buildings,vehicles and other equipment in a timely manner. Funds budgeted for the previous year and not spent are brought forward to the next year. Debt Service and Transfers out to other funds are projected at 2%growth. Pg. 4 • City Council Study Session • 2024 Proposed Mid-Biennial Budget Review and Modification—Part 2 • October 24, 2023 — Fund Forecast FUND BALANCE VS. POLICY RESERVE AMOUNT $20,000,000 $15,000,000 $10,000,000 S5,000,000 ($5,000,000) ($10,000,000) ($15,000,000) 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 —0— Ending Fund Balance -#- Policy Rs'af Amt- 16.7% Pg. 5 • City Council Study Session • 2024 Proposed Mid-Biennial Budget Review and Modification—Part 2 • October 24, 2023 -a I % PropertyTax Increase Year over Year Bond amounts not included — $25,000,000.00 $20,000,000.00 $15,000,000.00 $10,000,000.00 - $5,000,000.00 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 ■ Amt Collected ^ Amt increased Pg. 6 • City Council Study Session • 2024 Proposed Mid-Biennial Budget Review and Modification—Part 2 • October 24, 2023 �' Capped Revenue 1 forges us every year to have conversations with our community ri riti i n g expenditures 10-Year Forecast I o — Revenue — — Expense Pg. 7 • City Council Study Session • 2024 Proposed Mid-Biennial Budget Review and Modification—Part 2 • October 24, 2023 `�' 2024 PropertyTax Disbursement $23 , 942 , 139 Emergency Services,Parks Capital,& Street Overlay&Reconstruct, $3,083,564,13% Debt Service,$2,350,250,10% II General Fund,$8,807,406,37% Public Safety-Dispatch, $1,550,000,6% Streets,$4,580,000,19% • Parks&Rec,$3,570,919,15% Pg.8•City Council Study Session•2024 Proposed Mid-Biennial Budget Review and Modification—Part 2•October 24,2023 '�` General Property Revenue Comparison 2023 2024 Difference 9 005 763 8 807 406 $ ( 198 , 357 Equates to 2% --.4414 smierili4001111%W* Pg. 9 • City Council Study Session • 2024 Proposed Mid-Biennial Budget Review and Modification—Part 2 • October 24, 2023 Revenue Comparisons Citywide vs General Fund Citywide General Fund 2023 2024 Totals"I F 1. 2023 Alt 2024 AM Totals Ad Property Tax $ 22,919,530 $ 23,942,139 $ 1 ,022,609 Property Tax $ 9,005,763 $ 8,807,406 (198,357) Sales Tax $ 39,773,497 $ 41 ,181 ,000 $ 1 ,407,503 Sales Tax $ 28,880,497 $ 30,183,000 $ 1 ,302,503 $ 62,693,027 $ 65,123,139 $ 2,430,112 $ 37,886,260 $ 38,990,406 $ 1 ,104,146 Pg. 10 • City Council Study Session • 2024 Proposed Mid-Biennial Budget Review and Modification—Part 2 • October 24, 2023 `�' General Fund : Looking Ahead Known & Unknown 2024 Forecast Revenue 2024 Projected Expenditures Jail Housing Increase $ 500,000 2023 2024 Totals Aquatic Operating & Capital $ 589,217 Property Tax $ 9,005,763 $ 8,807,406 $ ( 198,357) Stop Loss Insurance $ 184,800 Sales Tax $ 28,880,497 $ 30,183,000 $ 1,302,503 Flock Camera Annual Maintenance $ 500,000 $ 37,886,260 $ 38,990,406 $ 1,104,146 Salaries & Benefits $ 551 ,168 Salary Study Findings TBD Indigent Defense Fund TBD Labor & Industries TBD CBA Adjustments TBD $ 2,325,185 Pg. 11 • City Council Study Session • 2024 Proposed Mid-Biennial Budget Review and Modification—Part 2•October 24,2023 Potential t• icittBiancethBde Department Budget Cut Offering Position Affected Cost Reduction City Manager/ED Eliminate Support to Special Event Support Fireworks $ 15,000 Part of 2024 Budget Discussions Police Eliminate Vacant Police Officer Positions 10- Vacant Positions $ 1,520,080 Police Stop Fingerprinting Service $ 81,658 Police Eliminate Crime Free Housing 2-Police Specialist Services 1 Positions $ 81,658 PW_Parks&Rec Transfer the Cost of Irrigation Usage to DYBID Businesses - $ 25,000 PW_Parks&Rec Close Fisher Golf Course Various seasonal/temporary staff $ 72,000 Eliminate Beyond the Bell&Miller/Kissel Summer Day PW_Parks&Rec Camps Various temporary staff $ 223,834 PW_Parks&Rec Eliminate Summer Concert Series at Franklin Park Various temporary staff $ 13,600 PW_Parks&Rec Eliminate Friday Movie Nights at Chesterley Park Various temporary staff $ 4,800 Fire Eliminate Staffing for 1 Station 12-Firefighter Positions $ 1,716,000 Part of 2025/2026 Budget Discussions City Manager/ED Reduce Support to Community Support Arts Commission $ 10,000 Codes Eliminate Vacant Code Compliance Officer 1-Vacant Position 220015$ 86,446 Codes Eliminate Plans Examiner Position 1-Plans Examiner Position $ 100,687 Delayed Residential Snow Removal/Elimination of PW-Streets&Traffic Contractors - $ 225,000 PW-Streets&Traffic Eliminate Alleyway Maintenance/Repair - $ 30,000 PW-Streets&Traffic Eliminate Trolley Maintenance/Repair - $ 10,000 PW_Parks&Rec Close Franklin Pool Various temporary staff $ 190,000 $ 4,390,763 Pg. 12 • City Council Study Session • 2024 Proposed Mid-Biennial Budget Review and Modification—Part 2 • October 24, 2023 �' Recap/Highlights • General Fund Estimates : • Revenue - $74.6 M • Expenditures - $76.3 M • Project Fund Balance Use: $1 .7 M • Forecast Revenue Growth : $ 1 . 1 M • Property Tax - $8 . 7 M (-$ 1 98k ) • Sales Tax - $ 1 . 3 M • Projected Expenditure Growth : • Known : $ 1 .8 M • Unknown : TBD Pg. 13 • City Council Study Session • 2024 Proposed Mid-Biennial Budget Review and Modification- Part 2 • October 24, 2023 (citT),; VJ'‘41.110r i 10/19/2023 16 Yakima City Council Parks & Recreation Information October 24, 2023 Yakima ,� Par . 'Celt metil)Ti LIONS POOL Recent Repairs & Improvements w -� p p • Dehumidification &Air System Replacement $650,000 • Pump Replacement—2022 $ 53,000 • Roof& Drywall Repair $ 20,000 Financial information • Expenses $490,000 • Revenue $Zoo,000 • Capital Budget $ o Programs • Swim Lesson • Lap Swimming • Water Exercise—WaterAerobics,WaterWalking, etc. • High School Swim Team Practices and Swim Meets • Recreational Swimming & Party Rentals 1 10/19/2023 17 FRANKLIN POOL Recent Improvements - • New Perimeter Fence $17,000 - • Expected Future Replacement Costs . .----- • - - Replace Water Slide $500,000 ° • Main Pump & Motor $100,000 o , • Facility Analysis—Deck& Mechanical $ 35,000 ,(. `- Financial Information _. • Expenses $280,000 • Revenue $ go,000 • Capital Budget $ o rf Programs • Recreational Swimming & Party Rentals !, .k • Swim Lesson • Lap Swimming ,.- 4:44s • Water Exercise—Water Aerobics,Water Walking, etc. • High School Swim Team Practices AQUATIC CENTER at MLK JR. PARK Future Aquatic Center • Design, Bid Documents&Specs $ 1,000,000 ._ LL • Construction $10,000,000 `' "' —r . - lit Projected Expense & Revenue ;---* . Iy • Projected Operating Budget $ 250,000 AL"t .4 • Projected Revenue $ 85,000 - Programs a t" • Recreational Swimming �s___ • Swim Lesson • Lap Swimming r _°_:. 4,\S • Water Exercise—Water Aerobics,Water Walking, etc. ; 2 10/19/2023 18 YAKIMA ROTARY AQUATIC CENTER Future Expenses—Starting In 2030 • so% Estimated Operating Cost PerYear $300,000 • Capital Costs—5o%of Total Cost $250,00o Al t 441 In Addition - $40,00o Per Year—Up to$1,000,000(Reserve) I u IN ,•, t I� PROPOSED UTILITY TAX FOR AQUATICS If The In-Lieu Taxes Are Increased By The Following: • Wastewater 20%to 25% • Water 2o%to 25% • Stormwater 15%to 25% We would then allocate o.5%from the in-lieu taxes from both Wastewater and Water and a full io%from Stormwater to be used towards aquatics funding The Proposed Aquatic Funding Becomes: • Wastewater— o.5% = $120,221 • Water— o.5% = $ 62,555 = Total: $589,217 • Stormwater- io% = $406,441 3 10/19/2023 19 FISHER PARK GOLF COURSE Recent Repairs & Improvements ' • Safety Netting - 2023 $ 60 000 '�'; • HVAC Replacement— 2021 $ 8 000 z ' ¢ � r4 NI Financial information •�- - ,,o...� , • Expenses $ 250,00o Y. 11 I. • Revenue $ 190,000 • Capital Budget $ o Programs • * t7 • Adult&Child Lesson & First Tee Program 0 • } • Senior Day, Ladies Day& Men's Day Specials \ • Open Play • High School Practices .._ ` • Private Event Rentals • Tournaments MOVIES & CONCERTS Financial information .. i • Expenses $ 26,000 . , ,4 Programs . 4, A% _ ;,1 • Viva la Musica Concerts—Miller& MLK Jr. Park-7 , • Movies in the Park—Chesterley- 6 • Summer Sunset Concerts—Franklin Park- 6 -> - , k° te,,° -- . - I : Ili ii*:l,VP,‘4••11 0 til rya 4 10/19/2023 20 TAHOMA CEMETERY Financial information • Expenses $370,000 • Revenue (plot sales, monument setting fees,other services,etc.) $180,000 Transfer from Parks Operating Fund $1go,000 Statistical Data to . '1ullna • 35,00o Burials r • 55 Acres • 3,00o Veteran Burials • 6,000 Plots Available for Sale { a. /i 1*,),, - (Does Not Include Undeveloped Areas) • 20,000+ Upright Headstones - Estimated TAHOMA CEMETERY r'TA8LISHED . y5 S✓ QUESTIONS? 5 Distributed at the Meeting io a aL?3 4-3 INSURANCE INCREASES 1 Worker's Compensation ❑ The Washington State Legislature enacts the laws that govern Industrial Insurance- Title 51 RCW ❑ Rules & Regulations for Self-Insurance Workers' Compensation (Chapter 296-15 WAC) • Claim acceptance, benefit approvals, etc. as determined by WA State Labor and Industries. ❑ Presumption of occupational disease for public safety personnel - RCW 51.32.185 • Because of the innate hazards in certain occupations, the legislature established RCW 51.32.185 in 1987. The law creates a presumption that there is a connection between occupational exposures on the job and certain illness. The law has been amended multiple times. The most recent update became effective July 28, 2019. In this update, the legislature expanded the conditions covered and added additional occupations to the presumption. ❑ As a result of the changes to Presumption laws and impacts of the pandemic • Increased number of claims • Increased costs ❑ Estimated Savings as Self-Insured Program 2022 $1.3m 2021 $530k 2020 $352k 1 WORKER'S COMPENSATION FUND 4,000,000.00 3,500,000.00 r 3,000,000.00 - 2,500,000.00 MUMMNIAM - — 2,000,000.00 ' - 1,500,000.00 1 ------ _,. -- 1,000,000.00 ,, - 4 t -emu.- 500,000.00 ( r _ d M.adr 0.00 •1070 ■26, I ■2022 ■ 2023 Estimate ❑ Health Plan ■ Annual renewal process ■ Review claims experience ■ Negotiate administrative fees, etc. ■ Implement programs to assist in controlling increase costs ■ Current trends in the NW are averaging around 17% ■ COY plan trends are under 5% ■ Stop-loss premiums are expected to increase ■ Premium increases for 2024 are approximately 3% ■ Impacts both the employee and city ■ Employee contribution ranges between $0 to $596/mo. NOM City of Yakima Financial Summary 1/1/2023-12/31/2023 Stop loss Adam MICare Vision Dental Prescnphon Medical Prescription Stop loss Gross Aggregate Medical Dental Ave Gross Month Premium fees Fees Pd Claims Pd Claims Pd Claims Pd Claims Rebate+ Reimb Total Cost Deduct ER Count EC Count Per Emp ($15IA001 I.�ittii.:+`.I $1,2citi,4i1 o.9v xy', '/ • 13A38711O23 1 -rl•. 1 (seal 33)' i. 23,454 5 I '4bo. 5/4 r-1 .. ) — 1 1,12.• .-'-`d!-'f-1 ci/ Canent Year Avg PEPM. 59903 $20.46 $84.31 $325.28 $1 141.5] Average Net Cost Per Employee. $1 643.40 Prior Year Avg PEPM. 594.04 $21.44 $80.15 $234.54 SI 177-SS Prior Year Average Net Cost Per Employee. $1 733 00 iK 4% 4% BR% 4% Percent changed between current and prior year •S.45o neWirwes o• 'Plnen Settlement v'eur'prUen Reoales ($619.411) _ %op lore Re.'rr6. ($852.207) 4% Stop loss Prem um 5853,9/6 6% Admin Fees 5488.838 Medial Pd Claims 4% $7,073,151 Mitre fees 54% $613.570 5% Vis.on Pd Ga.ms $126,780 1% Dental Pd Ca ins $514,953 4% Prescription Pd Oanns $2,015,406 15% OVERTIME CONTRIBUTORS I ❑Staffing levels ❑Increased turnover rates ❑Increased vacancy rates ❑Challenges in recruiting/retaining employees ❑ Fewer applicants applying ❑ Wages ❑Impacts of Vacancies ❑Staff Burnout ❑Increased Overtime ❑Turnover ❑Project belays ❑Reductions in service ❑Staff morale issues Nom CPI - W Trends , .6 4' 4.5 3.6 3.4 .5V .0 'w. ----•.' 3 2.6 tt ot N. JANUARY FEBRUARY MARCH APRIL MAY JUNE JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER -w-202 i •--,<--2011 )011 )O10 -2019 Atld a Foote'