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Home My WebLink About11/01/2016 17A Council General Information ! i BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. 17.A. For Meeting of: November 1, 2016 ITEM TITLE: Council General Information SUBMITTED BY: Sonya Clear Tee, City Clerk SUMMARY EXPLANATION: 1. Parks & Recreation Commission memo regarding Parks budget cuts 2. Preliminary Council Agenda 3. City Meeting Schedule ITEM BUDGETED: STRATEGIC PRIORITY: APPROVED FOR SUBMITTAL: City Manager STAFF RECOMMENDATION: BOARD /COMMITTEE RECOMMENDATION: ATTACHMENTS: Description Upload Date Type ❑ 10/27/2016 Coker Memo Budget Concerns 2017 Submitted by: Yakima Parks and Recreation Advisory Commissioner —Jo N. Miles October 12, 2016 Why the parks and recreation division budget should not be reduced: 1. When the charter amendment was first proposed in 2014, it committed $750,000 per year from the general fund for parks and recreation capital projects. The city also predicted that the measure would trigger a deficit or spending "gap" for General Government operations during the years 2016, 2017 and 2018. (See Financial Overview report presented to the city council April 8, 2014 - attached.) 2. The Yakima City Council heard citizen comments at its meeting on May 6, 2014 that questioned a decision that would knowingly cause a deficit of $2 million over the course of three years. The obvious fear was that existing parks and recreation programs were in danger of being cut to make room for the costs of new construction. 3. The Parks and Recreation Advisory Commission met and discussed at length during meetings June 11 and July 9, 2014 the budget deficit problems that a charter amendment would create, with City Council member Adkison in attendance. Commissioners did not want to support a measure that would force reductions in current parks and recreation operations. There was more worry due to a similar measure that had passed the previous year that committed $2 million per year to street improvement projects that may have stretched the city's general fund capacity too far. 4. An additional meeting was held between Parks and Recreation Commissioner Miles, City Manager O'Rourke and Council Member Adkison to determine exactly where the city manager intended to make cuts to balance the budget. On July 25, 2014 at 10:30 a.m. in the city manager's conference room, the city manager pledged not to cut any existing parks and recreation programs, staff or facilities budgets. With that assurance, Commissioner Miles agreed to drop public opposition to the charter amendment. The charter amendment passed and altered the status of the general fund. It did not create new money. Funds formerly earmarked for parks, recreation, streets, police, fire operations and other essential services, converted to capital projects only, every year, forever. The change put some existing programs at risk during lean years, but the city manager and the advisory commission's city council representative promised not to cut parks and recreation. Next, the city council approved using nearly all of the newly designated capital funds for two privately owned facilities (Sozo and YMCA) despite the original purpose of renovating Franklin Park swimming pool and Lions Pool. Also, the city's parks and recreation comprehensive plan (that had been adopted by the city council) prioritized refurbishing and enhancing already built city parks and swimming pools before new construction projects — a concept that was brushed aside by the city council's action. Conclusion: The parks and recreation division should not have its operating budget reduced or programs curtailed because city budget decisions were planned with eyes wide open knowing there would not be enough money by the end of 2016. The parks and recreation division was expected to be protected. JNM M EM O RANDUM TO: Honorable Mayor Cawley and Members of the City Council FROM: Tony O'Rourke, City Manager Cindy Epperson, Director of Finance and Budget Scott Shafer, Director of Public Works Joan Davenport, Strategic Project Manager DATE: April 8, 2014 SUBJECT: Council Study Session on Capital Project Options Summary of Study Session Issues The City has the opportunity to issue a capital project bond for $13 million. Three projects are presented as possible options that were previously identified as strategic priorities by the City Council: 1. North First Street Revitalization Project - $8 Million to $11 Million 2. Aquatic Center - $6.6 Million to $8 Million 3. Downtown Plaza - estimate not available, Financial Overview On January 21, 2014 an updated Five -Year Financial Plan for General Government operations was presented to Council. In that presentation, the 2014 and 2015 Forecasts are estimated to remain balanced. As we go forward, budget expenditures will be managed to stay in that position. The following is the summary chart included in the Plan, updated for 2013 actual results. 2013 2014 2015 2016 2017 2018 General Fund (Millions) Actual Budget Forecast Forecast Forecast Forecast Revenues $63.5 $66.9 $68.9 $71.1 $73.3 $75.5 Expenditures $63.5 $66.6 $68.9 UM $74.0 $75.7 Bud: -t Ga • ($0.0) $0.2 $0.0 ($1.1) ($0.7) ($0.2) Cost Reduction Flement 0. erational Efficiencies -__ $1.1 $0.7 $0.2 $0.2 $0.0 $0.0 $0.0 $0.0 701; 2014 21)15 2016 20'17 2018 kctual Rudgct Forecast Forecast Forecast Forecast Operating Reserve % of GF EMEN 16.7% 16.5% 16.0% 15.5% 15.1% Total Reserve $10.9 Et= $11.3 $11.3 $11.4 The Plan included $1,000,000 debt service on a future bond issue in 2016. In accordance with Council direction, we contacted our bond underwriters and asked them to estimate the size of a debt issue that would be repaid at $1,000,000 annually for 20 years. Using an interest rate estimate that is slightly higher than current rates, we could issue bonds to generate $13 million of project funds. In order to determine that we are staying within our non -voted debt capacity limit as set forth in state law, we projected that annual calculation out to 2020. We also compared the limit to our Financial Management policy that states that we should avoid using more than 70% of the capacity, leaving 30% in reserve for emergencies. Page 1of7 . �. ( • YAKIMA CITY COUNCIL STUDY SESSION November 3, 2016 City Hall — Council Chambers 9 a.m. Budget Study Session Community Development - Planning - Codes - ONDS - YRDA (Mill Site) - Economic Development - CBD Capital - PBIA's - Capitol Theatre - Convention Center Public Works - Administration - City Hall Maint. - Streets & Traffic - Parks & Recreation - Cemetery 1. Roll Call 2. The next meeting will be a Council Study Session on November 8, 2016 at 9 a.m. in the Council Chambers 3. Adjournment Any invocation that maybe offered before the official start of the Council meeting shall be the voluntary offering of a private citizen, to and for the benefit of the Council. The views or beliefs expressed by the invocation speaker have not been previously reviewed or approved by the Council, and the Council does not endorse the religious beliefs or views of this, or any other speaker. A Council packet is available for review at the City Clerk's Office and the Library. A packet is also available on -line at www.yakimawa.gov. The City provides special accommodations, such as hearing devices, wheelchair space or language interpreters, for City meetings. Anyone needing special assistance please contact the City Clerk's office at (509) 575 -6037 at least two business days prior to the meeting. CITY MEETING SCHEDULE For October 31, 2016 — November 7, 2016 Please note: Meetings are subject to change Monday, October 31 11 a.m. Bid Opening — Council Chambers Tuesday, November 1 9:00 a.m. Council Budget Study Session — Council Chambers 1:30 p.m. Yakima County Commissioners Agenda meeting — Council Chambers 6:00 p.m. City Council Business Meeting — Council Chambers Wednesday, November 2 5:30 p.m. Community Review Board Meeting — Council Chambers Thursday, November 3 9:00 a.m. Council Budget Study Session — Council Chambers 9:00 a.m. Yakima County Hearing Examiner — Council Chambers 1:30 p.m. City of Yakima Hearing Examiner — Council Chambers 1:30 p.m. Council Public Safety Committee — 2n Floor Conference Room Friday, November 4 8 a.m. Sister City Meeting — 2n Floor Conference Room 11:00 a.m. Bid Opening — Council Chambers Monday, November 7 12 noon Chamber of Commerce Board Meeting — Chamber of Commerce