HomeMy WebLinkAbout2015-047 2016 Budget AdoptionORDINANCE NO. 2015-047
AN ORDINANCE adopting a budget for the City of Yakima, Washington, for the year 2016;
and making appropriations for estimated expenditures.
WHEREAS, on or before the 27th day of October, 2015, a Preliminary Budget Summary
for the City of Yakima for the year 2016 was duly filed with the Director of Finance and City Clerk
of the City of Yakima and submitted to the Yakima City Council, all in accordance with applicable
laws, and
WHEREAS, subsequent to October 27, 2015, the City Council held hearings on the
budget and on parts thereof, and on November 17, 2015 and on December 1, 2015, the City
Council held its formal public hearing on the budget all in accordance with applicable laws, and
WHEREAS, subsequent to its formal public hearing, the City Council made adjustments
and changes to the budget as the Council deemed necessary or proper and determined the
allowance in each item, department, classification and fund, all as set forth in the final budget
document attached hereto, all in accordance with applicable laws, now, therefore,
BE IT ORDAINED BY THE CITY OF YAKIMA:
Section 1. The budget for the City of Yakima, Washington, for the year 2016 is hereby
adopted in its final form and content as set forth in the budget document entitled "City of Yakima,
Annual Budget - 2016," which is attached hereto as Schedule A and incorporated by reference
herein. There is hereby appropriated for expenditure during the year 2016 the aggregate amounts
listed on the attached Schedule A for each separate fund of the City, all in accordance with Title
3 of the City of Yakima Municipal Code. Pursuant to Article II, Section 9 of the City Charter, the
City Manager shall administer the expenditure of all funds appropriated herein, and the City
Manager is authorized to take all necessary and prudent actions to implement the City Council's
expenditure directives and budget appropriations.
Section 2. The City Clerk is directed to transmit a certified copy of the budget hereby
adopted to the Division of Municipal Corporations in the Office of the State Auditor and to the
Association of Washington Cities.
Section 3. This ordinance is one required to be made by the laws of the State of
Washington, and shall be in full force and effect on January 1, 2016, upon its passage and
publication as provided by law.
PASSED BY THE CITY COUNCIL, signed and approved this 8th day of December,
2015.
Publication Date: December 11, 2015
Effective Date: January 1, 2016
Micah Cawley Mayor
Fund/Description
City of Yakima
Annual Budget - 2016
Schedule A
Summary of Appropriations by Fund
2016 2016
Projected Budget % of
Resources Appropriation Budget
000 General Fund
123 Economic Development
124 Community Development
125 Community Relations
131 Parks & Recreation
141 Streets & Traffic Operations
142 Arterial Street
144 Cemetery
150 Emergency Services
151 Public Safety Communications
152 Police Grants
161 Downtown Improvement District
162 Trolley (Yakima Interurban Lines)
163 Front St Business Impr Area
170 Tourist Promotion (Conv Ctr)
171 Capitol Theatre
172 PFD Revenue -Convention Center
173 Tourist Promotion Area
174 PFD Revenue -Capitol Theatre
198 FRS/Capitol Theatre Reserve
221 LID. Guaranty
272 PFD Debt Service
281 General Obligation Bonds
283 1994 CJ/I-82 LT GO Bonds
284 1995 UT GO Bonds
287 1996 LT GO Convention Center Bonds
289 LID. Debt Service
321 CBD Capital Improvement
322 Capitol Theatre Construction
323 Yakima Rev Development Area
331 Parks & Recreation Capital
332 Fire Capital
333 Law & Justice Capital
342 Public Works Trust Construction
343 REET 2 Capital Construction
344 Street Capital Fund
370 Convention Center Capital Impr
392 Cum. Reserve for Capital Impr
$ 70,201,030 $ 62,650,615 27.5%
254,407 198,071 0.1%
2,240,488 1,431,769 0.6%
1,287,084 618,913 0.3%
5,989,127 5,468,072 2.4%
5,956,521 5,090,088 2.2%
12,096,166 10,737,025 4.7%
310,265 273,542 0.1%
1,528,357 1,407,117 0.6%
3,939,763 3,555,870 1.6%
696,700 369,716 0.2%
213,417 208,993 0.1%
147,533 147,046 0.1%
6,569 6,500 0.0%
2,288,736 1,694,510 0.7%
430,390 420,497 0.2%
1,322,505 727,720 0.3%
766,626 687,000 0.3%
779,715 630,883 0.3%
36,641 36,641 0.0%
25,364 - 0.0%
1,189,694 1,024,025 0.4%
3,320,972 3,312,239 1.5%
0.0%
0.0%
497,275 424,700 0.2%
48,015 48,000 0.0%
2,891,586 2,881,000 1.3%
143,041 70,000 0.0%
2,413,747 1,500,000 0.7%
1,681,135 1,569,000 0.7%
2,487,539 2,239,976 1.0%
994,291 693,000 0.3%
1,681,107 999,885 0.4%
987,891 978,250 0.4%
5,107,932 5,000,000 2.2%
861,397 385,000 0.2%
1,635,652 765,000 0.3%
Fund/Description
City of Yakima
Annual Budget - 2016
Schedule A
Summary of Appropriations by Fund
2016
Projected
Resources
2016
Budget % of
Appropriation Budget
421 Airport Operating Fund
422 Airport Capital Fund
441 Stormwater Operating
442 Stormwater Capital
462 Transit
464 Transit Capital Fund
471 Refuse
472 Wastewater Facilities Capital Rsv
473 Wastewater Operating
474 Water Operating
475 Irrigation Operating
476 Wastewater Construction
477 Water Capital
478 Wastewater Capital
479 Irrigation Capital
481 1998 Water Revenue Bond Reserve
483 1996 Wastewater Revenue Bond Reserve
484 1991 Water/Wastewater Revenue Bond Red
486 2008 Water Bonds
488 2008 Wastewater Bonds
489 1991 Water/Wastewater Revenue Bond Red
491 2004 Irrigation Bonds
493 2003 Wastewater Bonds
494 Revenue Bond
512 Unemployment Compensation
513 Employees Health Benefit
514 Workers' Compensation
515 Risk Management
516 Wellness/EAP
551 Equipment Rental
555 Environmental Fund
560 Public Works Administration
612 Firemen's Relief & Pension
632 YakCorps
710 Cemetery Trust
1,186,450
12,124,240
2,843,147
3,548,391
11,552,005
7,298,319
6,844,970
2,502,515
27,038,238
12,031,186
2,676,770
6,986,576
4,565,125
1,781,479
2,419, 729
359,789
150,563
105,113
241,716
411,815
899,333
352,354
1,420,965
208,871
646,968
12,514,303
1,735,994
6,199,183
304,515
9,013,009
1,740,696
1,608,250
2,329,664
707,466
668,022
$ 283,476,408
1,128,985
11,645,247
2,638,104
2,400,000
8,368,765
4,175,100
6,425,158
700,000
22,540,390
9,373,857
1,802,149
5,710,000
2,050,000
1,380,000
1,367,542
234,700
411,813
317,541
1,165,000
227,351
10,388,338
1,311,017
4,814,551
121,800
4,705,298
1,247,950
1,237,215
1,349,628
605,777
12,000
$ 228,105,939
0.5%
5.1%
1.2%
1.1%
3.7%
1.8%
2.8%
0.3%
9.9%
4.1%
0.8%
2.5%
0.9%
0.6%
0.6%
0.0%
0.0%
0.0%
0.1%
0.2%
0.0%
0.1%
0.5%
0.0%
0.1%
4.6%
0.6%
2.1%
0.1%
2.1%
0.5%
0.5%
0.6%
0.3%
0.0%
100.0%
BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No. 15.
For Meeting of: December 8, 2015
ITEM TITLE: Ordinance adopting a 2016 Budget for the City of Yakima
SUBMITTED BY: Jeff Cutter, Interim City Manager
Cindy Epperson, Director of Finance & Budget
SUMMARY EXPLANATION:
City management recently submitted the 2016 Preliminary Budget Summary and the related initiatives to City
Council and the public. This budget represents staff's projections of revenues and proposed expenditures for
the coming year.
The Preliminary Budget was first presented at a Study Session on October 27, 2015. Since that
presentation, minor corrections were made, and we have updated the numbers and explained all of the
changes in the transmittal memorandum attached to this agenda item. The budget documents and the Council
review meetings are all open and available to the public. The two major changes were a new grant award that
increased the N 1st Street project by $1 5 million, and Council's reduction in the property tax levy of
$132,500.
This is the last step in the 2016 budget process. In accordance with state law, Council is required to adopt
the budget prior to year end. Attached is a transmittal memorandum which details the changes from the
preliminary to final budget, a "Budget -in Brief' document that is a short summary of the citywide 2016
budget, the budget ordinance, and a schedule of revenues and expenditures that was updated from the
Preliminary Budget Summary to create the 2016 Final Adopted Budget.
Resolution: Ordinance:
Other (Specify): Transmittal Memorandum; Budget in Brief
Contract: Contract Term:
Start Date: End Date:
Item Budgeted: Amount:
Funding Source/Fiscal Impact:
Strategic Priority: Public Trust and Accountability
Insurance Required? No
Mail to:
Phone:
X
APPROVED FOR
SUBMITTAL:
RECOMMENDATION:
City Manager
Adopt the 2016 Budget for the City of Yakima
ATTACHMENTS:
Description
❑ 2016 Budget Transmittal
❑ 2016 Budget in Brief
❑ 2016 Budget Ordinance
13 2016 Budget Schedule A
Upload Date
12/3/2015
12/3/2015
12/3/2015
12/3/2015
Type
Coker Memo
Coker Memo
Coker Memo
Coker Memo
Memorandum
Date: December 8, 2016
To: The Honorable Mayor and Members of City Council
From: Jeff Cutter, Interim City Manager
Cindy Epperson, Director of Finance and Budget
Subject: 2016 Budget Adoption
We are pleased to transmit the final 2016 City of Yakima Budget for Council's consideration and
adoption of a balanced and prudent budget of $228.1 million. The 2016 budget represents an
18.7% increase over the projected 2015 year-end budget as well as healthy ending reserves of
$55.4 million or 24.3% of budgeted expenditures and reduction in the operating property tax
rate per $1,000 of assessed value of 1.1%.
As is customary, any changes that are made to the Preliminary Budget previously presented to
Council and the citizenry are summarized in this report, and the Final Budget is presented in
ordinance form for adoption.
CITYWIDE BUDGET UPDATE
The revised total City budget of $228.1 million represents a net increase of $1.4 million more
than the 2016 Preliminary Budget of $226.7 million. The major increases include:
➢ A grant award for the next phase of North 1st Street of $1.5 million.
➢ A Community Court Diversion Program of $56,000.
There was one significant reduction, as Council approved an increase in the property tax levy of
0.25%, instead of the 1.0% included in the preliminary budget, which subtracted $132,000 from
Revenue and $114,000 from Expenditures in General Fund.
As noted, many of the changes have related revenues—total citywide revenues increased by
$1.46 million as well.
The following chart summarizes the total City Budget, including the estimated beginning
balance, revenues, expenditures and ending balance.
Page 1 of 8
CITY-WIDE BUDGET SUMMARY
Estimated Estimated
2016 Beg. 2016 2016 Use of 2016 Ending
Fund Balance Revenue Expenditures Reserves Balance
General Fund $ 7,550,295 $ 62,650,735 $ 62,650,615 $ 120 $ 7,550,415
Parks and Recreation 478,162 5,510,965 5,468,072 42,893 521,055
Street & Traffic Operations 896,671 5,059,850 5,090,088 (30,238) 866,433
General Government Subtotal 8,925,128 73,221,550 73,208,775 12,775 8,937,903
Utilities/Other Operating 22,099,408 70,647,870 71,846,018 (1,198,148) 20,901,260
Capital Improvement 27,563,285 46,644,571 57,246,025 (10,601,454) 16,961,832
Risk Management Reserves 1,341,824 4,894,000 4,851,192 42,808 1,384,632
Employee Benefit Reserves 4,411,105 13,120,340 13,398,134 (277,794) 4,133,311
Trust and Agency Funds 748,711 626,777 617,777 9,000 757,711
G.O. Bond Debt Service 266,178 4,815,142 4,808,964 6,178 272,356
Utility Revenue Bond Debt Service 2,019,340 2,131,180 2,129,054 2,126 2,021,466
Total $ 67,374,978 $216,101,430 $228,105,939 $(12,004,509) $ 55,370,469
GENERAL GOVERNMENT BUDGET UPDATE
The primary change in General Government was the addition of a new Community Diversion
Program overseen by the Prosecution Division, which has the goal of connecting repeat
offenders with the services needed to resolve issues leading to crime of $56,000. Council also
approved the property tax levy at an amount below what was included in the Preliminary
Budget ($132,570). When these two things are considered, cost containment reductions of
$170,000 needed to be implemented. When added to other changes, there was a net revenue
decrease of $132,570, and a net expenditure reduction of $114,047 bringing the total from $73.3
million to $73.2 million.
Revenue
The only change in Revenue was the reduction of the property tax levy of -$132,570.
Expenditures
In addition to the Community Diversion Program, other changes in expenditures include:
➢ A reduction in the new Neighborhood Program of $30,000, tied to the timing of program
start-up.
➢ Reduction of $30,000 in external training expenses through Human Resources from
$87,000 to $57,000. The training coordinator which was added in 2014 has been trained
to teach seminars, which reduces the need to contract for external trainers.
➢ A reduction in Police overtime of $35,000. As new staff come online, the need for
overtime tied to staffing levels should be diminished.
➢ Another reduction tied to training is an across the board 10% reduction in transportation
($20,500) and related training registration budgets ($21,500). Both the training
Page 2of8
coordinator, coupled with the prevalence of webinars will be relied upon to keep staff
adequately trained.
➢ In reviewing the Police Pension budget, it is appropriate to reduce that estimate by $33,000.
Both the Parks & Recreation and Streets & Traffic Engineering Budgets are unchanged from the
Preliminary.
The following table details all of the changes made in the General Government Funds:
GENERAL GOVERNMENT FUND CHANGES
Revenue
Property Tax $ (132,570)
Expenditures
Community Court Diversion Program 56,000
Police Overtime (35,000)
Neighborhood Program Professional Svc (30,000)
Human Resources -External Training (30,000)
Police Pension (33,000)
Transportation/Travel/Training (42,047)
Total Changes to General Government Expenditures $ (114,047)
Net Change $ (18,523)
General Government Summary
The following table depicts a summary of all 2016 General Government budgets, including a
revenue and expenditure projection, the difference (or the net effect on beginning cash
reserves), the estimated beginning and ending reserve balances, and the percentage of the
ending reserve in comparison to the operating budget.
General Fund
Parks & Recreation
Street & Traffic Fund
Total General Government $73,221,550
GENERAL GOVERNMENT BUDGET SUMMARY
2016
Projected
Revenue
$62,650,735
5,510,965
5,059,850
2016 2016 2016 2016
2016 Exp Estimated Estimated End Bal
Proposed as % of Beginning Ending as % of
Expenditures Diff Rev Balance Balance Exp
$ 62,650,615 $ 120 0.0% $ 7,550,295 $ 7,550,415 12.1%
5,468,072 42,893 -0.8% 478,162 521,055 9.5%
5,090,088 (30,238) 0.6% 896,671 866,433 17.0%
$ 73,208,775 $ 12,775 0.0% $ 8,925,128 $ 8,937,903 12.2%
The 2016 General Government budget is virtually balanced, with the final net change adding
$12,775 to the beginning balance of $8,925,128, so that the 2016 projected ending fund balance is
$8,937,903 which represents 12.2% of the 2016 budgeted expenditures. The recommended
percentage of reserves compared to expenditures is 16.7%, which would require a balance of
Page 3of8
$12.2 million, or an additional $3.3 million. The city has had some one-time expenditures in the
last couple of years, including the purchase of the Tiger Mart properties for environmental
clean-up and risk management issues including defense of the Voting Rights Act lawsuit.
Unfortunately, revenue is not coming in as estimated in 2015, also causing a use of reserves.
Management will continue to monitor operations and reserve levels.
OTHER BUDGET ADJUSTMENTS
Other budget adjustments include:
➢ Changes in Hotel/Motel tax allocation in accordance with Lodging Tax Advisory
Committee action, which subtracts $25,000 from State Fair Park, and adds $50,000 to the
Capitol Theatre Committee Management Fee. The Hotel/Motel Tax revenue was
understated in the 2015 Preliminary budget, so an additional tax of $67,560 is being
added to the Convention Center capital fund. This tax is estimated to grow by 2.5%,
which is conservative considering the opening of the new boutique hotel in Downtown.
➢ When internal utilities reviewed the new grind and overlay project to be done in 2016, it
was determined that irrigation needed to add $25,000 to the capital budget. This fund
will about break-even with no use of reserves after this change.
➢ In Wastewater capital funds, transfers are being adjusted to move $300,000 each year out
of the construction (i.e. collection system) fund into the facility improvement fund. This
is only an accounting change, and doesn't affect the total Wastewater budget.
The following chart details all of the changes from the Preliminary Budget to this Final Budget
for all funds other than General Government.
Description
OTHER FUNDS BUDGET SUMMARY
Fund
Amount
Revenue
New TIB Grant -N 1st Street Project
Reduce Hotel/Motel Tax allocation -State Fair Park
Increase Hotel/Motel Tax allocation -Capitol Theatre
Increase Hotel/Motel Tax allocation-Conv Ctr Capital
Reduce Transfer from Wastewater Operations
Increase Transfer from Wastewater Operations
Expenditures
Add to N 1st Street Project for grant award
Reduce State Fair Park -$100k to $75k
Increase Capitol Theatre Committee - $232k to $282k
Additional Irrigation Capital project
Arterial Street
Tourist Promotion (Convention Ctr op)
Capitol Theatre Operating
Convention Center Capital
Wastewater Capital (Facility)
Wastewater Construction (Collection)
Arterial Street
Tourist Promotion (Convention Ctr op)
Capitol Theatre Operating
Irrigation Capital
$1,500,000
(25,000)
50,000
67,560
300,000
(300,000)
$1,592,560
$1,500,000
(25,000)
50,000
25,000
$1,550,000
Following is a summary of the current status of the 2016 Final Budget. The updated 2016
Budget by City Functional Grouping table provides a 3 year expenditure detail by fund.
Page 4 of 8
THREE-YEAR BUDGET COMPARISON - 2016 BUDGET BY CITY FUNCTIONAL GROUPING
2014
Actual
Expenditures
2015 2015 2016 2016 2016 2016 2016 2016
Amended Year -End Proposed vs 2015 Projected Use of Beginning Est. Ending
Budget Estimate Expenditures Est Revenue Reserves Fund Balance Fund Balance
General Government
City Management $ 386,675 $ 389,578 $ 404,528 $ 418,138 3.4%
Indigent Defense 604,480 1,000,500 910,500 935,500 2.7%
City Council 293,237 286,735 282,210 285,340 1.1%
Neighborhood Groups Program - - - 206,735 n/a
City Clerk/Records 581,099 592,904 541,184 652,086 20.5%
Human Resources 527,703 682,303 641,357 648,774 1.2%
Legal 1,368,033 1,525,072 1,482,476 1,645,037 11.0%
Municipal Court 1,288,302 1,395,989 1,338,504 1,427,119 6.6%
Planning 452,903 581,384 553,300 652,548 17.9%
Code Administration 2,621,485 1,682,327 1,618,468 1,839,575 13.7%
City Hall Facility 399,719 523,868 523,676 505,447 (3.5%)
Economic Development 456,317 702,329 794,932 888,891 11.8%
Police 26,377,102 26,868,918 26,052,791 27,327,133 4.9%
Fire 10,395,013 12,059,718 12,061,844 12,310,596 2.1%
Information Technology 2,849,321 3,062,977 3,101,555 3,113,902 0.4%
Intergovernmental 251,047 174,989 180,680 189,551 4.9%
Transfers 5,007,938 4,793,875 4,737,860 4,839,545 2.1%
Financial Services 1,502,372 1,605,263 1,576,332 1,529,538 (3.0%)
State Examiner 109,905 110,000 115,000 113,000 (1.7%)
Police Pension 1,193,161 1,167,200 1,084,490 1,104,060 1.8%
Utility Services 1,477,078 1,555,520 1,514,241 1,639,299 8.3%
Purchasing 559,928 654,699 622,238 630,092 1.3%
Engineering 798,763 890,530 825,915 833,710 0.9%
Contingency - (1,025,000) - (1,085,000) n/a
Total General Fund 59,501,583 61,281,676 60,964,079 62,650,615 2.8% $ 62,650,735 $ 120 $ 7,550,295 $ 7,550,415
Parks & Recreation 4,553,121 5,445,527 5,420,027 5,468,072 0.9% 5,510,965 42,893 478,162 521,055
Street & Traffic Operations 4,800,608 5,076,756 4,973,765 5,090,088 2.3% 5,059,850 (30,238) 896,671 866,433
Total General Government Funds $ 68,855,312 $ 71,803,959 $ 71,357,871 $ 73,208,775 2.6% $ 73,221,550 $ 12,775 $ 8,925,128 $ 8,937,903
Page 5 of 8
2014
Actual
Expenditures
2015
Amended
Budget
2015
Year -End
Estimate
2016 2016
Preliminary vs 2015
Expenditures Est
2016
Pr of ected
Revenue
2016 2016 2016
Use of Beginning Est. Ending
Reserves Fund Balance Fund Balance
Other Operating/Enterprise
Economic Development $ 430,690
Community Development 1,449,200
Community Relations 597,230
Cemetery 255,443
Emergency Services 1,291,290
Public Safety Communications 2,855,158
Police Grants 369,476
Downtown Improvement District 229,831
Trolley (Yakima Interurban Lines) 34,721
Front St Business Impr Area 5,216
Tourist Promotion (Cony Ctr) 1,432,809
Capitol Theatre 341,978
PFD Revenue -Convention Center 636,991
Tourist Promotion Area 641,422
PFD Revenue -Capitol Theatre 530,939
Airport Operating Fund 1,072,890
Stormwater Operating 2,319,147
Transit 7,789,855
Refuse 5,860,242
Wastewater Operating 20,352,602
Water Operating 9,020,711
Irrigation Operating 1,985,333
Equipment Rental 4,621,919
Environmental Fund 77,807
Public Works Administration 1,121,214
Total Other Operating/Enterprise $ 65,324,117
$ 260,766
3,373,107
674,823
291,709
1,312,692
4,506,862
475,296
202,172
368,961
7,000
1,620,704
407,290
748,220
687,000
640,220
1,102,006
3,353,229
8,615,247
5,877,188
21,901,186
9,347,579
1,795,875
5,697,917
1,557,950
1,165,173
$ 75,990,174
$ 260,394
3,327,699
649,590
288,911
1,305,601
4,051,457
310,036
202,172
271,400
7,000
1,609,828
406,819
748,220
667,000
640,208
1,017,848
2,929,588
7,927,046
5,861,246
21,355,700
9,054,915
1,784,591
4,691,447
1,444,450
1,160, 246
$ 71,973,410
$ 198,071
1,431,769
618,913
273,542
1,407,117
3,555,870
369,716
208,993
147,046
6,500
1,694,510
420,497
727,720
687,000
630,883
1,128,985
2,638,104
8,368,765
6,425,158
22,540,390
9,373,857
1,802,149
4,705,298
1,247,950
1,237,215
$ 71,846,018
(23.9%)
(57.0%)
(4.7%)
(5.3%)
7.8%
(12.2%)
19.2%
3.4%
(45.8%)
(7.1%)
5.3%
3.4%
(2.7%)
3.0%
(1.5%)
n/a
(9.9%)
5.6%
9.6%
5.5%
3.5%
1.0%
0.3%
(13.6%)
6.6%
(0.2%)
$ 183,000
1,421,193
666,600
262,950
1,326,026
3,499,468
416,000
205,340
73,624
3,735
1,683,800
414,700
828,750
687,000
624,800
1,134,929
2,151,000
8,701,402
6,595,262
22,102,484
8,816,000
1,803,540
4,722,942
1,180,000
1,143,324
$ 70,647,870
$ (15,071)
(10,576)
47,687
(10,592)
(81,091)
(56,402)
46,284
(3,653)
(73,422)
(2,765)
(10,710)
(5,797)
101,030
(6,083)
5,944
(487,104)
332,637
170,104
(437,906)
(557,857)
1,391
17,644
(67,950)
(93,891)
$ 71,407 $ 56,336
819,295 808,719
620,484 668,171
47,315 36,723
202,331 121,240
440,295 383,893
280,700 326,984
8,077 4,424
73,909 487
2,834 69
604,936 594,226
15,690 9,893
493,755 594,785
79,626 79,626
154,915 148,832
51,521 57,465
692,147 205,043
2,850,603 3,183,239
249,708 419,812
4,935,754 4,497,848
3,215,186 2,657,329
873,230 874,622
4,290,067 4,307,711
560,696 492,746
464,926 371,034
$ (1,198,148) $ 22,099,408 $ 20,901,260
Page 6 of 8
2014
Actual
Expenditures
2015 2015 2016 2016 2016 2016 2016 2016
Amended Year -End Preliminary vs 2015 Projected Use of Beginning Est. Ending
Budget Estimate Expenditures Est Revenue Reserves Fund Balance Fund Balance
Capital Improvement
Arterial Street $ 2,954,476 $ 4,026,490 $ 3,102,258 $ 10,737,025 246.1% $ 10,397,841 $ (339,184) $ 1,698,325 $ 1,359,141
C.B.D. Capital Improvement 119,783 891,000 883,000 2,881,000 226.3% 2,826,220 (54,780) 65,366 10,586
Capitol Theatre Construction - 190,000 190,000 70,000 n/a 66,641 (3,359) 76,400 73,041
Yakima Rev Development Area 1,228,911 3,500,000 3,155,000 1,500,000 (52.5%) 1,000,000 (500,000) 1,413,747 913,747
Parks & Recreation Capital 82,237 6,962,211 5,830,489 1,569,000 (73.1%) 508,400 (1,060,600) 1,172,735 112,135
Fire Capital 176,082 2,942,501 1,255,787 2,239,976 78.4% 2,242,410 2,434 245,129 247,563
Law & Justice Capital 929,480 702,243 617,704 693,000 12.2% 479,350 (213,650) 514,941 301,291
Public Works Trust Construction 513,639 1,028,084 683,635 999,885 46.3% 802,000 (197,885) 879,107 681,222
REET 2 Capital Construction 772,787 1,172,787 1,177,547 978,250 (16.9%) 802,000 (176,250) 185,891 9,641
Street Capital Fund 16,653,978 900,238 999,242 5,000,000 n/a 5,095,306 95,306 12,626 107,932
Convention Center Capital Impr 288,012 549,790 405,179 385,000 (5.0%) 360,400 (24,600) 500,997 476,397
Cum. Reserve for Capital Impr 5,979,376 3,745,000 1,545,000 765,000 (50.5%) 300,000 (465,000) 1,335,652 870,652
Airport Capital 1,072,241 12,539,721 747,563 11,645,247 1457.8% 11,325,568 (319,679) 798,672 478,993
Stormwater Capital 87,619 2,025,000 225,000 2,400,000 966.7% 700,000 (1,700,000) 2,848,391 1,148,391
Transit Capital Reserve 1,874,766 1,749,000 193,391 4,175,100 2058.9% 3,849,875 (325,225) 3,448,444 3,123,219
Wastewater Facilities Capital Rsv 107,043 600,000 250,000 700,000 180.0% 700,000 - 1,802,515 1,802,515
Wastewater Construction 920,384 3,280,000 170,000 5,710,000 3258.8% 500,000 (5,210,000) 6,486,576 1,276,576
Water Capital 4,169,101 2,670,000 1,276,578 2,050,000 60.6% 1,000,000 (1,050,000) 3,565,125 2,515,125
Wastewater Capital 2,211,238 810,000 550,000 1,380,000 150.9% 2,301,500 921,500 (520,021) 401,479
Irrigation Capital 1,184,938 1,567,742 1,467,742 1,367,542 (6.8%) 1,387,060 19,518 1,032,669 1,052,187
Total Capital Improvement $ 41,326,092 $ 51,851,807 $ 24,725,115 $ 57,246,025 131.5% $ 46,644,571 $(10,601,454) $ 27,563,285 $ 16,961,832
Contingency/Operating Reserves
FRS/Capitol Theatre Reserve $ 71,927
Risk Management 4,035,225
Total Contingency/Operating Rsys $ 4,107,152
$ 71,927 $ 71,927
3,643,704 3,951,716
$ 3,715,631 $ 4,023,643
$ 36,641 (49.1%) $ - $ (36,641) $ 36,641 $
4,814,551 21.8% 4,894,000 79,449 1,305,183 1,384,632
$ 4,851,192 20.6% $ 4,894,000 $ 42,808 $ 1,341,824 $ 1,384,632
Page 7 of 8
Employee Benefit Reserves
Unemployment Compensation
Employees Health Benefit
Workers' Compensation
Wellness/EAP Fund
Firemen's Relief & Pension
Total Employee Benefit Reserves
Trust and Agency Funds
Cemetery Trust
YakCorps Agency Fund
Total Trust and Agency Funds
Debt Service
L.I.D. Guaranty
PFD Debt Service
General Obligation Bonds
L.I.D. Debt Service
Water-Irrigation/Sewer Bonds
Total Debt Service
Total City Budget
2014
Actual
Expenditures
2015
Amended
Budget
2015
Year -End
Estimate
2016
Pr eliminary
Expenditures
2016
vs 2015
Est
2016
Projected
Revenue
2016
Use of
Reserves
2016 2016
Beginning Est. Ending
Fund Balance Fund Balance
$ 155,141
10,254,339
1,345,292
147,213
1,241,643
$ 13,143,629
$ 12,000
663,046
$ 675,046
$
$ 323,177
9,745,849
1,241,131
174,800
1,380,282
$ 12,865,238
$ 182,977
9,860,071
1,302,774
121,800
1,262,907
$ 12,730,528
$ 12,000 $ 12,000
605,777 605,777
$ 617,777 $ 617,777
$
$
1,015,650 1,026,050 1,026,050
2,085,427 3,438,379 3,438,379
106,743 245,000 75,000
2,292,268 2,132,155 2,132,155
$ 5,500,087
$198,931,435
$ 6,841,584
$ 6,671,584
$ 223,686,169 $192,099,928
$ 227,351 24.3% $ 197,000 $ (30,351) $ 449,968 $ 419,617
10,388,338 5.4% 10,407,500 19,162 2,106,803 2,125,965
1,311,017 0.6% 1,069,780 (241,237) 666,214 424,977
121,800 0.0% 121,800 - 182,715 182,715
1,349,628 6.9% 1,324,260 (25,368) 1,005,404 980,036
$ 13,398,134 5.2% $ 13,120,340 $ (277,794) $ 4,411,105 $ 4,133,311
$ 12,000
605,777
$ 617,777
0.0% $ 21,000 $ 9,000 $ 647,022 $ 656,022
0.0% 605,777 - 101,689 101,689
0.0% $ 626,777 $ 9,000 $ 748,711 $ 757,711
$ - n/a $ 50 $ 50 $ 25,314 $ 25,364
1,024,025 (0.2%) 1,026,103 2,078 163,591 165,669
3,736,939 8.7% 3,740,989 4,050 77,258 81,308
48,000 (36.0%) 48,000 - 15 15
2,129,054 (0.1%) 2,131,180 2,126 2,019,340 2,021,466
$ 6,938,018 4.0% $ 6,946,322 $ 8,304 $ 2,285,518 $ 2,293,822
$ 228,105,939 18.7% $ 216,101,430 $ (12,004,509) $ 67,374,978 $ 55,370,469
Page 8 of 8
CI ry OF 1akima
2016 BUDGET IN BRIEF
The Budget In Brief provides a high-level overview of the final 2016 budget, along with significant
issues that are anticipated to have a material impact in 2016.
Even as the local economy is gradually bouncing back to pre -recession levels, we are still struggling
with underlying conditions that has Yakima's unemployment and poverty rates higher than the state
and national averages. Given these economic challenges, the 2016 budget is balanced within available
resources without new taxes, and is responsive to the City Council's strategic priorities and the
community's needs. To that end, this budget is driven by the results of the 2015 Citizen Survey that
expressed a strong need to address the City's public safety challenges and deferred infrastructure
backlog, and to improve the appearance of the community and stimulate economic development.
2015 VS. 2016 BUDGET COMPARISON AND 2016 BUDGET OVERVIEW
The chart below compares the 2015 year-end estimate to the 2016 budget in summary format.
2015 ESTIMATE / 2016 BUDGET COMPARISON
Revenues Expenditures
2015 2015
Year -End 2016 % Year -End 2016 %
Estimate Budget Chng Estimate Budget Chng
General $ 60,640,617 $ 62,650,735 3.3% $ 60,964,079 $ 62,650,615 2.8%
Parks and Recreation 5,367,582 5,510,965 2.7% 5,420,027 5,468,072 0.9%
Street & Traffic Operations 4,862,400 5,059,850 4.1% 4,973,765 5,090,088 2.3%
General Government Subtotal 70,870,599 73,221,550 3.3% 71,357,871 73,208,775 2.6%
Utilities/Other Operating 72,164,285 70,647,870 (2.1%) 71,973,410 71,846,018 (0.2%)
Capital Improvement 26,331,913 46,644,571 77.1% 24,725,115 57,246,025 131.5%
Risk Management Reserves 4,300,000 4,894,000 13.8% 4,023,643 4,851,192 20.6%
Employee Benefit Reserves 12,590,268 13,120,340 4.2% 12,730,528 13,398,134 5.2%
Trust and Agency Funds 654,333 626,777 (4.2%) 617,777 617,777 0.0%
G.O. Bond Debt Service 4,541,835 4,815,142 6.0% 4,539,429 4,808,964 5.9%
Utility Rev Bond Debt Service 2,134,280 2,131,180 (0.1%) 2,132,155 2,129,054 (0.1%)
Total $193,587,513 $ 216,101,430 11.6% $192,099,928 $228,105,939 18.7%
The estimated revenues for all funds, including beginning balances, are $283.5 million. This represents an
increase of $22.5 million or 11.6% more than the 2015 Year -End Estimate of $261.0 million.
The expenditure budget for FY 2016 for all funds is $228.1 million. This is $36.0 million or 18.7% more than
the 2015 Year -End Estimate of $192.1 million. Most of this increase ($32.5 million) is in the area of capital
improvement.
Budget in Brief -1
2016 BUDGET SUMMARY
Estimated Estimated
2016 Beg. 2016 2016 Use of 2016 Ending
Fund Balance Revenue Expenditures Reserves Balance
General Fund $ 7,550,295 $ 62,650,735 $ 62,650,615 $ 120 $ 7,550,415
Parks and Recreation 478,162 5,510,965 5,468,072 42,893 521,055
Street & Traffic Operations 896,671 5,059,850 5,090,088 (30,238) 866,433
General Government Subtotal 8,925,128 73,221,550 73,208,775 12,775 8,937,903
Utilities/Other Operating 22,099,408 70,647,870 71,846,018 (1,198,148) 20,901,260
Capital Improvement 27,563,285 46,644,571 57,246,025 (10,601,454) 16,961,832
Risk Management Reserves 1,341,824 4,894,000 4,851,192 42,808 1,384,632
Employee Benefit Reserves 4,411,105 13,120,340 13,398,134 (277,794) 4,133,311
Trust and Agency Funds 748,711 626,777 617,777 9,000 757,711
G.O. Bond Debt Service 266,178 4,815,142 4,808,964 6,178 272,356
Utility Revenue Bond Debt Service 2,019,340 2,131,180 2,129,054 2,126 2,021,466
Total $ 67,374,978 $216,101,430 $228,105,939 $(12,004,509) $ 55,370,469
➢ The use of reserves of $12.0 million is programmed to be primarily out of capital funds, which is
typical as reserves are built over time to be used in major projects. Wastewater, Stormwater, and
Water utilities are in the middle of major capital programs, and Parks Capital is using the first
$750,000 set aside in 2015.
➢ The operating funds are set with conservative revenue estimates—even though many of them are
budgeted to use reserves, it is likely that future revenue will exceed budget, bringing them closer to
"break-even" by next year-end.
Some features of the Fiscal Year 2016 budget that should be noted are:
Revenues
➢ The general operating property tax levy for FY 2016 is estimated to be $3.0882 per $1,000 of
assessed value, a decrease of $0.0357 or 1.1% below the current rate.
➢ Refuse is implementing a rate increase that will average about 13.2% in total, ranging from $0.98
to $2.00 per account per month. This will be the first rate increase to support the basic
operations of this utility since 2008.
➢ Water, Wastewater, Stormwater, and Irrigation utilities are not budgeting rate adjustments in
2016. Recent rate studies indicate increases are needed for all but Irrigation, but management is
proposing to postpone any rate adjustments until 2017. These utilities will be reviewing rates
again as they prepare for the Capital Facilities Plan component of the Comprehensive Plan
which is required to be completed in 2017.
Personnel
➢ 767.52 total proposed full-time (FTE) positions in all funds for Fiscal Year 2016.
➢ A net increase of 6.85 FTE's from 2015-5 in General Government; 1.85 in other funds
➢ Refer to the General Staffing section in the 2016 Preliminary Budget document for more
information.
Budget in Brief - 2
Capital Improvements
The City will invest $58.8 million in FY 2016 to address its capital needs. This includes all capital funds
and the equipment replacement portion of the Equipment Rental fund.
FINANCIAL CONDITION
Despite several years of downward pressure on revenues mainly due to tax relief legislation and the
economic recession, Yakima is emerging from the recession and is continuing to maintain fiscal
stability.
Bond Ratings
The City is proud of affirming an "AA-" rating from Standard and Poor's on its water and wastewater
utilities. Also, in 2014 Standard and Poor's upgraded the City's rating on its general obligation bonds from
"A+" to "AA-". Careful preparation by the staff, combined with good audits, high level of fiscal
responsibility and comprehensive written financial policies resulted in this upgrade. A better rating means
the City's general obligation bonds are considered to be of high investment quality, which translates into
lower interest rates and corresponding lower interest payments.
General Government Revenues/Balancing
Ad valorem taxes - To ensure its long-term financial success, the City is proposing to set its operating
property tax levy at rate of $3.0882 per $1,000 of assessed value in Fiscal Year 2016. The State law allows the
City to impose the lesser of the rate of inflation (as measured by the Implicit Price Deflator (IPD)) or 1%
above the prior year levy, plus levies for new construction and annexations. The City estimates to collect
$308,000 or 1.75% more in the FY 2016 levy than it did in FY 2015, made up of 1.5% for new construction
and the IPD increase of 0.25%.
The 2016 General Government incremental revenue growth of $2.35 million is based on the following:
➢ 0.25% inflation adjustment in property tax levy plus an estimate $277,000
of 1.5% new construction. The combined general operating and debt
service property tax levy will decrease by 1.1% from 2015 tax levy.
➢ 4.0% growth in sales tax (2012-14 over 6% annual growth, 2015 about 4%). $640,000
➢ Utility tax growth of 2.9%. $456,000
➢ Proposed sale of two Tiger Mart sites. $400,000
We have balanced the 2016 General Government Fund budget using the following strategies:
➢ Continuing the 2% vacancy rate offset $1,085,000
Personnel costs are budgeted at 98% to account for a minimum 2%
position turnover/vacancy
➢ Reduction in Overtime -combination of adding 3 Firefighter positions, $480,000
and other cost containment in this category
➢ Reduced Fuel Prices $145,000
Budget in Brief - 3
MAJOR POLICY CONSIDERATIONS
The 2016 budget includes the following investments in the community's key priorities:
Strategic Priority
Budgeted Item(s)
Public Safety
Police Legacy CAD & Records System
$ 150,000
$1,581,000
Increase for Dangerous Buildings Abatement (offset by revenue)
-
Transfer Animal Control to Police
-
Digital Cameras for Patrol Division
15,000
Replacement Program for Police Motorcycles
65,000
Taser Replacement
20,000
Add 3 Firefighters (Increase offset by reduction in Overtime)
264,000
Increase Technical Rescue Training Budget
10,000
Station 95 Annex Outbuilding Project
257,000
Station 95 Sleeping Quarters
75,000
Purchase a Water Tender for Fire Suppression
125,000
Snow Removal Equipment at the Airport
600,000
Economic Development
Economic Development Community Support
$ 443,000
$1,968,000
Potential Convention Center Expansion Development Plan
25,000
Cascade Mill Redevelopment Project
1,500,000
Built Environment
Public Works Telephone System Upgrade
$ 67,000
$34,951,050
Virtual Server Cluster -Information Technology
125,000
Add One Part -Time Temporary to the Permit Center
11,000
City Hall Facility Projects
600,000
Vehicle Security Gates at Yakima Air Terminal
700,000
Airport Taxiway Bravo Design
225,000
Arterial Street Capital Projects -including N 1st St
9,744,050
Road Improvements
5,000,000
Wastewater Capital Projects
7,790,000
Water Capital Projects
2,050,000
Irrigation Capital Projects
1,025,000
Stormwater Capital Projects
2,400,000
Purchase 7 Each Replacement Buses, Vans and Paratransit Vehicles
3,982,000
Passenger Shelters for the Transit system
80,000
Passenger Counters for Transit Fixed Route and Dial -a -Ride
120,000
Equipment Rental Shop Upgrades
45,000
Parks Capital Projects
987,000
Partnership Development
Neighborhood Partnerships Program
$ 237,000
$3,083,500
Visitors Center Operation Increase
6,500
Tourism Promotion Professional Services
9,000
Sports Commission Allocation
7,500
Convention Center Management Fee
19,800
Humane Society Contract Increase
3,700
Yakima Central Plaza Development
2,800,000
Public Trust & Accountability
PW Security Upgrade
$ 40,000
$211,500
Add Two Transit positions (Maint Crew Leader/Field Supervisor)
139,000
Refuse Electronic Routing System
25,000
Refuse Rate Increase
(767,000)
Mechanic Training
7,500
Budget in Brief - 4
2016 EXPENDITURE BUDGET BY FUND
($228.1 MILLION)
Capital
Improvement
$57.2
25.1%
Ris k
Ma na gement
Reserves
$4.9
2.1%
Employe e
Benefit
Reserves
$13.4
5.9%
Trust and
Agency Funds
$0.6
0.3%
G.O. Bond Debt
Service
$4.8
2.1%
Utilities /Other
Ope rating
$71.8
31.5%
Street&Traffic Parks and
Ope rations Recreation
$5.1 $5.5
2.2% 2.4%
2016 RESOURCES BUDGET BY FUND
($283.5 MILLION)
Capital
Improvement
$74.2
26.2%
Utilitie s/Othe
Ope rating
$92.7
32.7%
Resources =
Revenues plus
Beginning Fund Balance
Ris k
Ma na gement
Reserves
$6.2
2.2%
Employe e
Benefit
Reserves
$17.5
6.2%�
Parks and
Street&Traffic Recreation
Operations $6.0
$6.0 2.1%
2.1%
Utility Revenue
Bond Debt
Service
$2.1
0.9%
Ge ne ral Fund
$60.8
27.5%
Trust and
Age ncy Funds
$5.1
0.5%
G.O. Bond Debt
Service
$5.1
1.8%
Utility Revenue
Bond Debt
Service
$4.2
1.5%
Ge ne ral Fund
$70.2
24.8%
Budget in Brief - 5