HomeMy WebLinkAbout12/17/2024 03.C. Ordinance adopting the 2025-2026 Priority Based Biennial Budget for the City of Yakima i4
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BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No. 3.C.
For Meeting of: December 17, 2024
ITEM TITLE: Ordinance adopting the 2025-2026 Priority Based Biennial Budget for
the City of Yakima
SUBMITTED BY: Vicki Baker, City Manager
Viren Mayani, Director of Finance & Budget
SUMMARY EXPLANATION:
An Ordinance to adopt the 2025-2026 Priority Based Biennial Budget for the City of Yakima is attached.
The 2025-2026 Biennial Budget appropriation is attached to the Ordinance as Schedule A.
The preliminary 2025-2026 Biennial Budget was proposed by staff and presented at a series of public
Study Sessions on October 8, 15, 22 and 29. Budget Hearings were held on November 4 and 19. The
City is required by state statute to adopt a budget prior to the end of the preceding year.
ITEM BUDGETED:
STRATEGIC PRIORITY 24-25:
RECOMMENDATION: Pass Ordinance.
ATTACHMENTS:
25-26 Budget Ordinance Memo
25-26 Budget Ordinance.docx
Schedule A 25-26 Biennial Budget.pdf
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(-:;;;;T: City of Yakima
Department of Finance and Budget
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129 North 2nd Street, Yakima, WA 98901
(509) 575-6070
www.yakimawa.gov
Date: December 17, 2024
To: Honorable Mayor and Members of City Council
From: Vicki Baker, City Manager
Viren Mayani, Director of Finance & Budget
Staff respectfully presents the proposed 2025-2026 Priority Based Biennial Budget for
the Council's consideration. This proposal results from a series of publicly noticed Study
Sessions held on October 1, 8, 15, 22, and 29, as well as two public hearings on
November 4 and 19, during which community input was actively solicited.
The revised preliminary budget for the 2025-2026 Biennial period reflects the strategic
guidance and priorities established by the Council during the October Budget Study
Sessions, along with valuable insights collected from the public hearings.
The 2025-2026 Priority-Based Biennial Budget is designed to achieve a balanced
General Fund, which is a crucial aspect of the city's financial stability. This budget
includes a series of strategic reductions aimed at optimizing resources and ensuring
fiscal responsibility. These reductions have allowed access to funds that can be utilized
for essential city services and projects.
City staff are dedicated to working closely with the City Council to develop and
implement long-term planning initiatives that focus on achieving fiscal sustainability.
One key initiative is the establishment of an ad hoc Budget Advisory Committee to
provide valuable insights and recommendations on budgetary matters, enhancing
transparency and community engagement in the budgeting process.
Looking ahead, financial projections suggest that the city will conclude the budget
period with an ending fund balance of approximately 16% by the end of 2025. However,
it is important to note that this balance is expected to decline to around 5% by the end
of 2026. This anticipated decrease underscores the need for ongoing attention to fiscal
management and strategic planning to maintain the city's economic health.
Achievements: The City Council has made transformative policy decisions that have
allowed the Finance Department to finalize an array of essential documents, including
ordinances, reports, narratives, and other coordinating materials, all aligned for
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successful final adoption. The Council and city staff have invested significant effort in
navigating this complex process, exploring innovative solutions to maintain current
service levels for our community.
Strategic Priorities: The budget process requires careful evaluation of the city's
immediate service needs while considering long-term infrastructure investments across
various funding sources. We must also remain vigilant in ensuring fiscal sustainability
and achieving our Strategic Priorities.
The City Council's Strategic Priorities are:
A Safe & Healthy Yakima
A Resilient Yakima
A Thriving Yakima
An Engaged Yakima
Throughout the year, our staff plays a crucial role in managing service delivery and
adapting the budget to address unexpected challenges. The proposed budget for this
biennium is firmly rooted in the current realities we face today. The City Council actively
embraces governance year-round, making informed policy decisions based on the best
available information. Furthermore, residents have had the privilege of participating by
sharing their valuable feedback during study sessions and public hearings.
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ORDINANCE NO. 2024-
AN ORDINANCE adopting the biennial budget for the City of Yakima, Washington, for the
fiscal years 2025-2026; and making appropriations for estimated
expenditures.
WHEREAS, Article II, Section 9 of the City Charter requires the City Manager to have
prepared and submitted to the City Council a tentative budget for the fiscal year, required by
October 1 prior to the beginning of the City fiscal year (RCW 35.33.051, 35.33.055); and
WHEREAS, the City Council passed Ordinance 2022-007 establishing a two-year
fiscal biennial budget, as authorized by RCW 35A.34.040; and
WHEREAS, on or before the 1st day of October, 2024, a Preliminary Budget
Summary for the City of Yakima for the biennium 2025-2026 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, notice was posted and published for public hearings held on November 4,
2024 and on November 19, 2024. The City Council held its formal public hearings on the
budget all in accordance with applicable laws; and
WHEREAS, subsequent to its formal public hearing, the City Council had the
opportunity to make 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 fiscal years 2025
and 2026 is hereby adopted in its final form and content as set forth in the budget document
entitled "City of Yakima, Biennial Budget 2025— 2026," which is attached hereto as Schedule
A and incorporated by reference herein. There is hereby appropriated for expenditure during
the years 2025 and 2026 the aggregate amounts listed on the attached Schedule A for each
separate fund of the City. Pursuant to Article II, Section 9 of the City Charter, the City
Manager shall prepare and submit to the Council a tentative budget for the fiscal year. Once
the Council adopts the annual budget, the Council authorizes the City Manager to adjust
appropriations within individual funds at his/her discretion.
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, 2025, upon its passage and
publication as provided by law.
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PASSED BY THE CITY COUNCIL, signed and approved this 17th day of
December,
2024.
Patricia Byers, Mayor
ATTEST:
Rosalinda Ibarra, City Clerk
Publication Date:
Effective Date:
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City of Yakima
Biennial Budget 2025-2026
Schedule A
SUMMARY OF APPROPRIATIONS BY FUND
Estimated 2026
2025 Beg 2025 2025 2026 2026 YE Estimate Inc in
Fund Budgeted Budgeted Budgeted Budgeted Fund (Dec in)
Fund/Description Balance Revenue Expenditure Revenue Expenditure Balance Reserves
General Fund $ 16,451,654 $ 71,152,642 $ 75,680,538 $ 71,522,992 $ 79,391,731 4,055,019 $(12,396,635)
General Fund-Criminal Justice 604,654 3,449,000 3,590,684 3,554,000 3,763,690 253,280 (351,374)
General Fund-Fire Relief/Pension 1,109,121 977,088 1,074,763 1,002,088 1,073,126 940,408 (168,713)
General Fund-Police Relief/Pension - 800,000 712,800 700,000 675,130 112,070 112,070
Neighborhood Development 1,108,427 5,054,470 3,945,562 2,403,551 1,475,409 3,145,477 2,037,050
Community Relations 535,701 504,000 709,112 508,000 742,461 96,128 (439,573)
Parks&Recreation 590,576 6,671,068 6,776,075 6,795,820 6,988,189 293,200 (297,376)
Aquatic Center at MKL Park 719,000 - - 719,000 -
Clean City Fund 629,535 968,858 797,812 987,632 837,138 951,075 321,540
Streets&Traffic 2,215,993 5,139,628 5,416,703 6,730,616 7,279,263 1,390,271 (825,722)
Cemetery 132,034 400,000 448,780 430,000 471,437 41,817 (90,217)
Emergency Services 701,105 2,497,171 2,230,284 2,497,171 2,348,044 1,117,119 416,014
Public Safety Communications 876,278 2,556,452 2,572,288 2,550,000 2,766,908 643,534 (232,744)
Police Grants 569,714 687,529 611,138 329,840 266,130 709,815 140,101
Public Safety Comm-Crim Just 0.3% 198,278 270,000 281,002 240,000 298,358 128,918 (69,360)
Public Safety Comm- Dispatch 681,510 1,918,167 1,997,033 2,069,392 2,142,884 529,152 (152,358)
Downtown Yakima Bus Impr Dist 81,761 185,750 184,746 185,750 184,928 83,587 1,826
Trolley 48,697 11,869 15,319 11,869 13,637 43,479 (5,218)
Front Street Business Improvement 2,094 3,700 3,700 3,700 3,700 2,094 -
Convention&Event Center 1,031,063 2,331,200 2,025,477 2,406,200 2,050,163 1,692,823 661,760
Capitol Theatre 118,484 435,000 434,412 450,000 449,813 119,259 775
PFD Rev-Cony&Event Center 690,870 1,203,900 878,951 1,303,900 1,176,091 1,143,628 452,758
Tourist Promotion Area 121,757 1,303,200 1,315,718 1,353,200 1,364,767 97,672 (24,085)
PFD Rev-Capitol Theatre 907,664 862,831 698,418 862,831 708,673 1,226,235 318,571
ARPA Fiscal Recovery Fund 67,700 1,829,026 1,829,026 64,121 70,695 61,126 (6,574)
PFD Debt Service 416,199 1,413,051 1,413,051 1,405,447 1,405,447 416,199 -
Misc LTGO Bonds 17,626 1,299,664 1,299,664 1,299,664 1,299,664 17,626 -
Law&Justice Capital 0.3% 552,650 120,000 120,000 120,000 120,000 552,650 -
CBD Capital Improvement 55,024 - - - - 55,024 -
Capitol Theatre Capital 108,324 60,000 60,000 60,000 60,000 108,324 -
Yakima Revenue Development Area 2,095,994 9,787,500 11,080,368 3,200,000 3,033,043 970,083 (1,125,911)
Parks&Recreation Capital 1,510,282 255,721 30,151 265,134 14,941 1,986,045 475,763
Fire Capital 576,936 163,000 80,000 163,000 80,000 742,936 166,000
Law&Justice Capital 676,690 287,023 4,528 290,559 12,533 1,237,211 560,521
REET 1 2,807,322 1,344,448 2,387,455 1,357,448 2,242,360 879,403 (1,927,919)
REET 2 421,392 1,260,000 1,382,943 1,273,000 1,381,987 189,462 (231,930)
Transportation Benefit District 4,912,345 1,700,000 2,759,561 1,700,000 1,071,984 4,480,800 (431,545)
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Estimated 2026
2025 Beg 2025 2025 2026 2026 YE Estimate Inc in
Fund Budgeted Budgeted Budgeted Budgeted Fund (Dec in)
Fund/Description Balance Revenue Expenditure Revenue Expenditure Balance Reserves
Street Overlay&Reconstruction 2,396,749 26,837,583 26,865,452 19,841,456 19,755,156 2,455,180 58,431
Cony&Event Center Cap Impr 1,305,413 280,000 353,123 580,000 527,050 1,285,240 (20,173)
Capital Impr-Cumulative Reserve 2,001 - - - 2,001 - (2,001)
Airport Operating 1,457,425 1,503,935 2,310,327 1,599,319 2,095,858 154,494 (1,302,931)
Airport FAA 258,922 6,911,298 7,092,942 2,582,100 2,288,577 370,801 111,879
Stormwater Operating 2,851,393 4,349,918 5,348,737 4,653,343 5,601,549 904,368 (1,947,025)
Stormwater Capital 3,408,263 2,628,809 3,315,367 2,538,365 1,881,293 3,378,777 (29,486)
Transit Operating 17,170,388 14,013,483 11,857,913 14,113,312 12,189,150 21,250,120 4,079,732
Transit Capital 5,583,780 2,750,000 2,080,266 2,250,000 1,166,925 7,336,589 1,752,809
Refuse 4,778,483 9,992,170 10,048,687 10,291,935 10,410,589 4,603,312 (175,171)
Wastewater Capital-Facilities 1,894,171 1,000,000 902,543 1,000,000 1,199,185 1,792,443 (101,728)
Wastewater Operating 6,111,350 25,191,271 26,540,181 26,029,354 27,414,993 3,376,801 (2,734,549)
Water Operating 6,339,810 14,230,290 14,141,294 14,958,500 14,497,491 6,889,815 550,005
Irrigation Operating 578,495 2,301,314 2,398,893 2,370,275 2,496,681 354,510 (223,985)
Wastewater Capital-Construction 5,954,075 1,628,768 3,162,474 1,538,365 3,101,550 2,857,184 (3,096,891)
Water Capital 2,623,640 3,558,654 3,097,021 3,200,000 3,758,650 2,526,623 (97,017)
Wastewater Capital-Projects 5,795,503 4,000,000 7,071,888 4,000,000 5,054,451 1,669,164 (4,126,339)
Irrigation Capital 4,065 16,275,810 10,543,796 1,726,084 6,802,494 659,669 655,604
2008 Wastewater Bond 14,897 387,550 387,550 381,900 381,900 14,897 -
2004 Irrigation Bond 29,314 274,900 274,900 273,750 273,750 29,314 -
2012 Wastewater Bond 1,620,948 - - - - 1,620,948 -
Unemployment Compensation 513,505 288,778 208,740 305,439 213,385 685,597 172,092
Employee Health Benefit Reserve 4,324,247 17,313,778 15,654,372 18,097,639 15,980,335 8,100,957 3,776,710
Workers'Compensation Reserve 1,145,396 4,536,371 3,712,133 4,536,501 3,731,808 2,774,327 1,628,931
Risk Management Reserve 5,151,721 4,546,286 7,585,674 6,550,021 7,662,642 999,712 (4,152,009)
Wellness/Employee Asst Program 212,682 75,000 66,900 75,000 66,900 228,882 16,200
Equipment Rental/Reserves(552) 1,889,823 6,618,778 6,498,900 6,737,378 5,665,068 3,082,011 1,192,188
Environmental 186,996 615,600 716,905 265,500 324,283 26,908 (160,088)
Public Works Administration 456,003 1,691,604 1,855,610 1,759,268 1,942,935 108,330 (347,673)
Utility Services 739,688 2,492,928 2,492,928 2,613,571 2,613,571 739,688 -
Custodial Fund 402,770 - - 402,770 -
Cemetery Trust 738,747 12,000 12,000 12,000 12,000 738,747 -
City-wide Total $130,285,117 $305,209,832 $311,445,578 $274,977,300 $286,376,544 $112,650,127 $(17,634,990)
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