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Home My WebLink About11/28/2023 04. Final Discussion on 2024 Mid-Biennial Budget 1 oU5'fl .',, s^ , a, . j. BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. 4. For Meeting of: November 28, 2023 ITEM TITLE: Final Discussion on 2024 Mid-Biennial Budget SUBMITTED BY: *Mark Roberts, Director of Finance & Budget SUMMARY EXPLANATION: This is a final discussion on the 2024 Mid-Biennial Budget. Budget Study Sessions were held October 10th and October 24th followed by Public Hearings on November 7th and November 21st. ITEM BUDGETED: NA STRATEGIC PRIORITY: Public Trust and Accountability APPROVED FOR SUBMITTAL BY THE CITY MANAGER RECOMMENDATION: ATTACHMENTS: Description Upload Date Type a /`--, \ ' ce I , -� C ... tMid - Biennial '-'7-1(--------1- -4'.. . L6---9- ------ City Council Study Session November 28, 2023 Overview The purpose of the presentation is to provide a review of the proposed 2024 Mid-Biennial Budget. Pg.2•City of Yakima Public Hearing• Review of 2024 Mid-Biennial Budget•November 28,2023 ,. Z'yw General Fund Forecast Including In Lieu Increase 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 $12,579,888 $ 9,059,412 $10,018,954 $ 8,911,699 $ 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 3,993,825 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 76,716,333 78,854,320 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 261,107 776,942 500,360 100,000 105,000 110,250 115,763 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 63,810,480 71,442,317 77,188,608 75,756,790 79,961,576 84,406,926 89,106,846 Est End Fund Balance $15,273,951 $12,579,888 $ 9,059,412(10,018,954) 8,911,699 $ 5,563,987 $ (209,542) Policy RsvAmt-16.7% $10,656,350 $11,930,867 $12,890,497 $12,651,384 $13,353,583 $14,095,957 $ 14,880,843 Net Fund Balance $ 4,617,601 $ 649,021 $(3,831,086) $(2,632,430) $(4,441,884) $(8,531,970) $ (15,090,385) Pg.3•City of Yakima Public Hearing.Review of 2024 Mid-Biennial Budget•November 28,2023 0 General Fund Forecast Not Including In Lieu Increase 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 $12,579,888 $ 9,059,412 $ 7,394,901 $ 3,601,111 $ (2,497,266) 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 76,687,786 78,849,349 81,079,255 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 10,609,674 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 63,810,480 71,442,317 77,188,608 76,256,790 80,481,576 84,947,727 89,669,278 Est End Fund Balance $ 15,273,951 $12,579,888 $ 9,059,412 $ 7,394,901 $ 3,601,111 $ (2,497,266) $(11,087,289) Policy RsvAmt- 16.7% $ 10,656,350 $11,930,867 $12,890,497 $12,734,884 $13,440,423 $ 14,186,270 $ 14,974,769 Net Fund Balance $ 4,617,601 $ 649,021 $(3,831,086) $(5,339,983) $(9,839,312) $(16,683,537) $(26,062,059) Pg.4•City of Yakima Public Hearing•Review of 2024 Mid-Biennial Budget•November 28,2023 0 Breakdown of The 2024 Estimated PropertyTax Calculation per Yakima County Assessor's Office Prior Year Highest Lawful Levy $ 21,207, 174 Additional 1% $ C-212,072 --) Subtotal $ 21,419,246 New Construction $ 290,305 Annexations $ 793 Administrative Refund $ 38,643 Buffer for final adjustments in state assessed refunds, new construction and annexation values. $ 100,000 2024 Estimated Property Tax $ 21,848,988 1 1 Estimate does not include the EMS levy of approximately $2,279,438 Pg.5•City of Yakima Public Hearing.Review of 2024 Mid-Biennial Budget•November 28,2023 Citywide Forecast 2021 2022 2023 2024 2025 2026 2027 Actual Actual YE Eat Amended Projected Projected Projected Beginning Balance $ 124,121,259 $ 133,867,128 $ 132,324,609 $ 108,913,586 $ 102,530,204 $ 89,107,586 $ 68,120,096 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&Franchise Taxes 20,185,211 22,056,133 23,118,210 23,463,365 23,932,632 24,411,285 24,899,511 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 57,238,414 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 68,190,140 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&Forf,Transfers,Misc 55,117,731 63,140,341 59,502,514 60,606,709 61,818,843 63,055,220 63,685,772 Total Revenues 243,053,093 249,015,971 283,169,806 265,884,149 272,025,452 278,322,528 284,149,254 Expenditures' Salaries&Wages 61,175,233 64,424,137 73,023,788 73,526,559 77,938,153 82,614,442 87,571,309 Personnel Benefits 36,896,845 37,987,958 43,758,718 45,105,938 47,812,294 50,681,032 53,721,894 Supplies-Cons&Resale 7,120,799 9,516,657 10,681,649 10,283,160 10,694,486 11,122,265 11,567,156 Services&Payments 56,400,951 62,313,827 75,672,820 71,785,111 74,656,515 77,642,776 80,748,487 Custodial Outlays 4,911,591 4,247,961 — — — — — Capital Outlays 43,091,731 41,224,432 75,886,513 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 19,786,928 20,182,667 Total Expenditures 233,307,224 250,558,490 306,580,829 272,267,531 285,448,070 299,310,018 313,890,085 Est End Fund Balance $ 133,867,1213 $ 132,324,609 $ 108,913,586 $ 102,530,204 $ 89,107,586 $ 68,120,096 $ 38,379,265 Policy Rsv Amt-16.7% $ 38,962,306 $ 41,843,268 $ 51,198,998 $ 45,468,678 $ 47,669,828 $ 49,984,773 $ 52,419,644 Net Fund Balance $ 94,904,822 $ 90,481,341 $ 57,714,588 $ 57,061,526 $ 41,437,758 $ 18,135,323 $ (14,040,379) Pg.6•City of Yakima Public Hearing• Review of 2024 Mid-Biennial Budget•November 28,2023 General Fund : Looking Ahead Known & Unknown 2024 Forecast Revenue 2024 Projected Expenditures Jail Housing Increase $500,000 Aquatic Fund $300,000 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 $ 37,886,260 $ 38,990,406 $ 1,104,146 Maintenance $201,000 Salaries & Benefits (1%) $500,000 Labor & Industries $846,118 CBAAdjustments TBD $2,531,918 Pg.7•City of Yakima Public Hearing.Review of 2024 Mid-Biennial Budget• November 28,2023 Allocated Funds ARPA Fund Update Project provides$6 million match for LIFT funds to pay debt service for future road projects. Annual Mill Site Water&Sewer $ 6,000,000 2022-2023 funding is$1 million in LIFT to be used for debt service reimbursement for roads debt. This grant was used to financially support the Convention Center when it was shut down for the Convention Center $ 500,000 2021 pandemic. Domestic Violence Advocate $ 250,000 2022-2024 Position was filled and has been actively supporting DV victims 56 vehicles have been received,1 vehicle scheduled for production in November 2023,52 deployed and 4 currently being upfitted with equipment. As the City had insufficient cash to make this purchase, ARPA was used as the mechanism to fund this general fund requirement. Without ARPA,debt service would have been nearly$6 million over 10 years with annual debt service payments of approximately Police Cars(57) $ 4,600,000 2022-2023 $575,000 3-Fire Engines,2-Rescue Vehicles, 3- Command Vehicles, 1-Tech Rescue The City undertook significant upgrades to the Fire Department fleet over the past two years. Most of Vehicle $ 2,800,000 2022-2023 these investments in apparatus The City invested in several technology and software enhancements to upgrade the City's technological Investment in Technology $ 1,000,000 2021-2024 ability to complete tasks. The City invested in several technology and software enhancements to upgrade the City's technological YPD-Investment in Technology $ 70,612 2021-2024 for YPD YPAC $ 55,776 Investment in Sewer lines for unsersed Completing the engineering work for the sewer line extensions. Currently have a request for neighborhoods $ 1,000,000 2023 construction from Senator Cantwell. Acquisition of this building provided additional parking and will eventually be used for additional City Acquisition of the former BOA building $ 2,000,000 2022 offices including the City Council Chambers-COMPLETE Aquatic Center at MLK Jr.Park $ 1,500,000 2024 Capital costs for new MLK Park Economic Development Project $ 800,000 2024 Microsoft 365 $ 400,380 2023 Office 365 registration 2023 Fire Overtime $ 1,000,000 2023 Fire Overtime previously allocated to MCAT Program Rod's House $ 667,000 2023 Rod's House-selected from RFP YWCA Domestic Violence Shelter $ 2,000,000 2022-2023 Focus on the City's ongoing domestic violence crime rate and imitative to lower the rate. Affordable Housing $ 333,000 2022-2024 Grace City Outreach partnership at Camp Hope;container homes Community Partnerships $ 99,620 2022-2024 $99,620.28-People For People(Meals on Wheels Commercial Kitchen) Homeless Day Use Hygiene Center $ 400,000 2022-2025 Partnership with Comprehensive Health to develop a hygiene and day use facility. Subtotal: $ 25,476,388 Unallocated Funds $ 450,000 2022-2024 Previously allocated to Yakima Arts Center Subtotal: $ 450,000 Total: $ 26,195,479 Treasury Funds $ 25,476,388 Estimated obligations $ 719,091 Available balance Pg.8•City of Yakima Public Hearing•Review of 2024 Mid-Biennial Budget•November 28,2023 Proposed Utility Tax Increase Current 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 Potential Impact to Median Home Stormwater-Aquatic Funding 10% $ 406,441 $ 406,441 Bimonthly or Annually $ 12,550,251 $ 2,713,271 Water: $ 2.97 $ 17.82 Wastewater: $ 3.54 $ 21.24 Refuse: $ 4.16 $ 24.96 Potential Increase to: Stormwater: $ 1.32 $ 7.92 General Fund $ 2,124,054 $ 11.99 $ C71.94 Capital & Operating Budget for the Aquatic Fund $ 589,217 $ 2,713,271 Pg.9•City of Yakima Public Hearing. Review of 2024 Mid-Biennial Budget• November 28,2023 ,77 414111k--./.•