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BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDASTATEMENT
Item No. 10.
For Meeting of: December 13, 2016
ITEM TITLE: Ordinance adopting a 2017 Budget for the City of Yakima
SUBMITTED BY: Cliff Moore, City Manager
Cindy Epperson, Director of Finance & Budget
SUMMARY EXPLANATION:
The item before Council is the staff recommendation to adopt the 2017 City of Yakima budget as
presented. The budget includes updates to the preliminary budget as directed by Council.
The Preliminary Budget Summary was first presented at a Study Session on October 24, 2016.
Since that presentation, Council has given direction for various modifications, which are included
in the budget now under consideration. The updated numbers are outlined in the transmittal
memorandum dated December 8, 2016, included with this item.
In accordance with state law, the City is required to adopt a budget prior to years end. In addition
to the transmittal memorandum, a "Budget-in Brief” document that is a short summary of
the citywide 2017 budget, the budget ordinance, and a schedule of revenues and expenditures
that was updated from the Preliminary Budget Summary to create the 2017 Final Adopted Budget
is included.
ITEM BUDGETED:
STRATEGIC PRIORITY: Public Trust and Accountability
APPROVED FOR
SUBMITTAL: 11 City Manager
STAFF RECOMMENDATION:
Pass ordinance
BOARD/COMMITTEE RECOMMENDATION:
ATTACHMENTS:
Description Upload Date Type
O 2017 Budget Transmittal 12/8/2016 Cover Memo
O 2017 Budget in Brief 12/8/2016 Cover Memo
O 2017 Budget Ordinanace 12/8/2016 Cover Memo
Memorandum
Date: December 8, 2016
To: The Honorable Mayor and Members of City Council
From: Cliff Moore, City Manager
Cindy Epperson, Director of Finance and Budget
Subject: 2017 Budget Adoption
We are pleased to transmit the final 2017 City of Yakima Budget for Council's consideration and
adoption of a prudent budget balanced within available resources of$238.8 million. The overall
2017 budget represents a 15.2%increase over the projected 2016 year-end budget as well as an
ending reserves of$51.1 million or 21.4% of budgeted expenditures and an increase in the
operating property tax rate per$1,000 of assessed value of 0.8%.
Changes that were made to the Preliminary Budget previously presented to Council and the
citizenry were summarized in the report that was on the December 6, 2016 agenda, so that the
final public hearing on the 2017 Budget included the most updated changes. City Council
approved one more change to the budget at that meeting. That has been incorporated into this
Final Budget which is presented in ordinance form for adoption.
CITYWIDE BUDGET UPDATE
The revised total City expenditure budget of$238.8 million represents a net decrease of$0.2
million from the 2017 Preliminary Budget of$239.0 million presented at the December 6, 2016
meeting. The only change consisted of Council's direction to remove 3 additional Firefighter
positions from the 2017 budget, and make them contingent on receipt of a Staffing for Adequate
Fire and Emergency Response (SAFER) grant-this change reduced General Government
expenditures.
The revised total City revenue budget of$219.8 million is unchanged from the December 6
presentation.
The following chart summarizes the total City Budget,including the estimated beginning
balance,revenues, expenditures and ending balance.
Memorandum-1
CITY-WIDE BUDGET SUMMARY
Estimated Estimated
2017 Beg. 2017 2017 Use of 2017 Ending
Fund Balance Revenue Expenditures Reserves Balance
General Fund $ 5,754,842 $ 65,087,882 $ 65,328,043 $ (240,161) $ 5,514,681
Parks and Recreation 605,689 5,547,225 5,583,642 (36,417) 569,272
Street&Traffic Operations 582,448 7,583,540 7,518,427 65,113 647,562
General Government Subtotal 6,942,980 78,218,647 78,430,112 (211,465) 6,731,515
Utilities/Other Operating 21,313,948 73,661,646 75,095,315 (1,433,669) 19,880,279
Capital Improvement 35,004,602 41,034,953 58,577,309 (17,542,357) 17,462,246
Risk Management Reserves 156,149 4,078,528 3,913,381 165,147 321,295
Employee Benefit Reserves 3,792,773 15,192,660 15,217,837 (25,177) 3,767,596
Trust and Agency Funds 656,731 676,000 667,000 9,000 665,731
G.O.Bond Debt Service 272,748 4,779,045 4,775,260 3,785 276,533
Utility Revenue Bond Debt Service 2,021,467 2,126,855 2,127,754 (899) 2,020,568
Total $ 70,161,400 $219,768,333 $238,803,968 $(19,035,635) $51,125,764
GENERAL GOVERNMENT BUDGET UPDATE
General Government Summary
The following table depicts a summary of all 2017 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. As noted above, the only change was
the reduction in Firefighter positions, which added back$203,476 to the 2017 Estimated Ending
Balance.
GENERAL GOVERNMENT BUDGET SUMMARY
2017 2017 2017 2017
2017 2017 Exp Estimated Estimated End Bal
Projected Proposed as%of Beginning Ending as%of
Revenue Expenditures Diff Rev Balance Balance Exp
General Fund $65,087,882 $ 65,328,043 $(240,161) 0.4% $ 5,754,842 $5,514,681 8.4%
Parks&Recreation 5,547,225 5,583,642 (36,417) 0.7% 605,689 569,272 10.2%
Street&Traffic Fund 7,583,540 7,518,427 65,113 -0.9% 582,448 647,562 8.6%
Total General Government $78,218,647 $ 78,430,112 $(211,465) 0.0% $ 6,942,980 $6,731,515 8.6%
The 2017 General Government budget is virtually balanced,with the final net change using
$211,465 of the beginning balance of$6,942,980, so that the 2017 projected ending fund balance
is$6,731,515 which represents 8.6% of the 2017 budgeted expenditures. The recommended
Memorandum-2
percentage of reserves compared to expenditures is 16.7%,which would require a balance of
$13.1 million, or an additional$6.4 million. Management will continue to monitor operations
and reserve levels.
OTHER FUND CHANGES
There were no changes made to other funds.
Following is a summary of the current status of the 2017 Final Budget. The updated 2017
Budget by City Functional Grouping table provides a 3 year expenditure detail by fund.
Memorandum-3
THREE-YEAR BUDGET COMPARISON- 2017 BUDGET BY CITY FUNCTIONAL GROUPING
2015 2016 2016 1 2017 2017 2017 2017 2017 2017
Actual Amended Year-End I Proposed vs 2015 Projected Use of Beginning Est.Ending
Expenditures Budget Estimate 1 Expenditures Est Revenue Reserves Fund Balance Fund Balance
General Government
City Management $ 504,402 $ 418,138 $ 429,828 I $ 399,805 (7.0%)
Indigent Defense 910,981 935,500 940,500 I 965,500 2.7%
City Council 280,679 285,340 271,415 : 252,176 (7.1%)
Neighborhood Groups Program - 206,735 - 1 - n/a
City Clerk/Records 533,284 654,256 648,483 I 582,429 (10.2%)
Human Resources 649,024 653,258 638,353 1 724,580 13.5%
Legal 1,467,922 1,651,505 1,566,632 : 1,703,161 8.7%
Municipal Court 1,346,861 1,431,404 1,430,029 : 1,496,999 4.7%
Planning 535,201 658,184 625,322 : 669,715 7.1%
Code Administration 1,626,019 1,855,499 1,811,374 I 1,877,343 3.6%
City Hall Facility 504,382 ° 505,447 495,696 ' 521,591 5.2%
Economic Development 784,085 889,964 798,264 I 743,507 (6.9%)
Police 26,452,368 27,462,308 27,202,038 : 28,119,824 3.4%
Fire 12,171,410 12,379,172 12,348,244 13,128,867 6.3%
Information Technology 3,087,092 3,126,390 3,083,547 I 3,478,097 12.8%
Intergovernmental 180,054 189,551 189,551 I 155,287 (18.1%)
Transfers 4,750,225 ' 4,839,545 4,884,845 ''s, 5,352,664 9.6%
Finance 1,532,581 1,530,716 1,538,377 I 1,625,592 5.7%
State Examiner 127,429 113,000 115,072 : 117,000 1.7%
Police Pension 1,038,660 1,104,060 953,661 1 964,997 1.2%
Utility Services 1,518,454 1,704,433 1,647,479 : 1,762,285 7.0%
Purchasing 610,041 630,092 625,273 I 608,463 (2.7%)
Engineering 809,739 833,710 728,578 1 753,162 3.4%
Contingency - (1,085,000) - I (675,000) n/a
Total General Fund 61,420,893 62,973,206 62,972,563 65,328,043 3.7% $ 65,087,882 $ (240,161) $ 5,754,842 $ 5,514,681
Parks&Recreation 5,554,286 5,481,878 5,481,878 I 5,583,642 1.9% 5,547,225 (36,417) 605,689 569,272
Street&Traffic Operations 5,549,823 5,408,279 5,407,091 ' 7,518,427 39.0% 7,583,540 65,113 582,448 647,562
Total General Government Funds $ 72,525,002 1 $ 73,863,363 $ 73,861,531 ' $ 78,430,112 6.2% $ 78,218,647 $ (211,465) $ 6,942,980 $ 6,731,515
Memorandum-4
2015 2016 2016 1 2017 2017 2017 2017 2017 2017
Actual Amended Year-End I Preliminary vs 2015 Projected Use of Beginning Est.Ending
Expenditures Budget Estimate s Expenditures Est Revenue Reserves Fund Balance Fund Balance
Other Operating/Enterprise
Economic Development $ 248,183 $ 198,071 $ 193,745 ? $ 134,266 (30.7%) $ 122,000 $ (12,266) $ 61,676 $ 49,410
Community Development 1,408,139 3,349,462 3,343,451 I 1,486,742 (55.5%) 1,481,868 (4,874) 1,037,748 1,032,874
Community Relations 634,153 618,913 578,572 1 644,764 11.4% 678,100 33,336 756,939 790,275
Cemetery 281,178 274,712 273,212 I 280,957 2.8% 282,950 1,993 17,476 19,468
Emergency Services 1,305,260 1,417,895 1,407,895 I 1,417,413 0.7% 1,365,890 (51,523) 120,857 69,334
Public Safety Communications 4,059,802 3,563,096 3,519,226 I 3,775,176 7.3% 3,794,846 19,670 54,786 74,456
Police Grants 303,579 401,716 368,457 I 384,078 4.2% 416,000 31,922 451,312 483,234
Downtown Improvement District 199,062 208,993 198,500 I 201,353 1.4% 208,340 6,987 2,279 9,266
Trolley(Yakima Interurban Lines) 254,321 164,855 163,855 I 1,355 (99.2%) 1,275 (80) 757 677
Front St Business Impr Area 3,221 10,279 8,357 I 3,500 (58.1%) 3,735 235 57 292
Tourist Promotion(Cony Ctr) 1,610,885 1,694,510 1,654,510 I 1,709,375 3.3% 1,710,250 875 517,551 518,426
Capitol Theatre 406,528 420,497 420,497 I 434,878 3.4% 438,920 4,042 33,320 37,362
PFD Revenue-Convention Center 738,730 727,720 727,720 : 733,213 0.8% 850,750 117,537 615,616 733,153
Tourist Promotion Area 657,921 687,000 687,000 I 707,200 2.9% 707,550 350 81,172 81,522
PFD Revenue-Capitol Theatre 639,918 630,883 630,883 I 661,400 4.8% 660,500 (900) 183,728 182,828
Airport Operating Fund 1,022,353 1,128,985 1,097,083 I 1,248,700 13.8% 1,249,229 529 147,031 147,560
Stormwater Operating 2,980,262 2,650,375 2,647,375 ' 3,159,881 19.4% 3,057,650 (102,231) 321,868 219,636
Transit 8,005,242 8,368,765 8,091,493 = 9,447,643 16.8% 9,075,569 (372,074) 2,788,810 2,416,736
Refuse 5,830,965 6,459,053 6,394,856 I 6,914,474 8.1% 7,131,094 216,620 329,347 545,967
Wastewater Operating 21,889,068 22,589,282 21,726,931 : 23,510,252 8.2% 22,729,779 (780,472) 5,326,884 4,546,411
Water Operating 9,385,180 9,819,509 9,819,489 I 10,208,593 4.0% 9,703,000 (505,593) 2,463,391 1,957,798
Irrigation Operating 1,802,284 1,829,496 1,828,709 I 1,737,460 (5.0%) 1,803,500 66,040 872,218 938,258
Equipment Rental 4,749,623 4,765,532 4,388,988 1 4,603,125 4.9% 4,636,942 33,817 4,092,769 4,126,586
Environmental Fund 1,275,733 1,247,950 247,950 I 422,950 70.6% 380,000 (42,950) 657,331 614,381
Public Works Administration 1,141,699 1,256,978 1,249,153 : 1,266,566 1.4% 1,171,908 (94,658) 379,027 284,369
Total Other Operating/Enterprise $ 70,833,286 1 $ 74,484,527 $ 71,667,910 I $ 75,095,315 4.8% $ 73,661,646 $ (1,433,669) $ 21,313,948 $ 19,880,279
Memorandum-5
2015 2016 2016 2017 2017 2017 2017 2017 2017
Actual Amended Year-End Preliminary vs 2015 Projected Use of Beginning Est.Ending
Expenditures Budget Estimate Expenditures Est Revenue Reserves Fund Balance Fund Balance
Capital Improvement
•
Arterial Street $ 1,822,375 $ 10,737,025 $ 4,009,634 ? $ 4,867,075 21.4% $ 4,665,039 $ (202,036) $ 573,466 $ 371,430
C.B.D.Capital Improvement 566,050 2,881,000 768,570 10,888,560 1316.7% 9,915,280 (973,280) 1,737,892 764,612
Capitol Theatre Construction 17,649 242,351 70,000 ' 60,000 (14.3%) 60,000 - 245,391 245,391
Yakima Rev Development Area 3,092,240 1,500,000 1,177,000 2,168,686 84.3% 1,000,000 (1,168,686) 1,424,125 255,439
Parks&Recreation Capital 2,575,977 ' 3,344,049 3,342,406 2,031,000 (39.2%) 1,126,817 (904,183) 1,240,543 336,360
Fire Capital 1,220,178 2,239,976 787,328 2,648,617 236.4% 2,641,350 (7,267) 34,097 26,830
Law&Justice Capital 434,337 1 693,000 693,000 693,000 0.0% 501,150 (191,850) 547,718 355,868
Public Works Trust Construction 642,784 1,011,385 951,833 1,655,114 73.9% 836,448 (818,666) 1,206,091 387,425
REET 2 Capital Construction 1,177,547 1 978,250 977,372 782,452 (19.9%) 752,000 (30,452) 277,589 247,137
Street Capital Fund 934,473 5,000,000 167 i 401,500 n/a 525,659 124,159 189,303 313,462
Convention Center Capital Impr 326,762 385,000 385,000 385,000 0.0% 370,500 (14,500) 583,975 569,475
Cum.Reserve for Capital Impr 1,263,603 1,580,000 1,490,249 - (100.0%) - - 428,298 428,298
Airport Capital 547,128 13,805,247 13,803,913 2,815,089 (79.6%) 2,856,150 41,061 48,065 89,126
Stormwater Capital 158,484 2,400,000 700,000 3,900,000 457.1% 1,060,000 (2,840,000) 3,044,907 204,907
Transit Capital Reserve 54,217 4,334,205 2,274,420 2,009,675 (11.6%) 2,656,000 646,325 4,700,848 5,347,173
Wastewater Facilities Capital Rsv 83,709 700,000 700,000 i 800,000 14.3% 700,000 (100,000) 1,968,809 1,868,809
Wastewater Construction 81,809 5,710,000 960,000 ' 8,910,000 828.1% 2,900,000 (6,010,000) 6,114,767 104,767
Water Capital 467,972 2,257,738 506,000 = 1,444,000 185.4% 750,000 (694,000) 4,555,143 3,861,143
Wastewater Capital 320,669 1,380,000 - 3,750,000 n/a 501,500 (3,248,500) 4,033,623 785,123
Irrigation Capital 939,442 1,367,542 840,284 : 8,367,542 895.8% 7,217,060 (1,150,482) 2,049,953 899,471
Total Capital Improvement $ 16,727,406 $ 62,546,768 $ 34,437,176 $ 58,577,309 70.1% $ 41,034,953 $(17,542,357) $ 35,004,602 $ 17,462,246
Contingency/Operating Reserves •
FRS/Capitol Theatre Reserve $ 71,927 $ 36,641 $ 36,641 $ - (100.0%) $ - $ - $ - $ -
Risk Management 4,684,994 5,664,864 5,471,094 3,913,381 (28.5%) 4,078,528 165,147 156,149 321,295
Total Contingency/Operating Rsys $ 4,756,921 1 $ 5,701,505 $ 5,507,735 i $ 3,913,381 (28.9%) $ 4,078,528 $ 165,147 $ 156,149 $ 321,295
Memorandum-6
2015 2016 2016 2017 2017 2017 2017 2017 2017
Actual Amended Year-End s Preliminary vs 2015 Projected Use of Beginning Est.Ending
Expenditures Budget Estimate Expenditures Est Revenue Reserves Fund Balance Fund Balance
Employee Benefit Reserves
Unemployment Compensation $ 196,662 $ 227,351 $ 192,644 ' $ 227,353 18.0% $ 205,000 $ (22,353) $ 453,600 $ 431,247
Employees Health Benefit 10,394,450 11,588,338 11,584,028 12,308,313 6.3% 12,450,000 141,687 1,403,627 1,545,314
Workers'Compensation 1,244,078 1,311,017 1,144,884 1,290,919 12.8% 1,104,500 (186,419) 738,787 552,368
Wellness/EAP Fund 95,530 121,800 111,300 i 101,800 (8.5%) 100,000 (1,800) 127,348 125,548
Firemen's Relief&Pension 1,220,413 1,349,628 1,183,583 1,289,452 8.9% 1,333,160 43,708 1,069,410 1,113,118
Total Employee Benefit Reserves $ 13,151,134 $ 14,598,134 $ 14,216,438 $ 15,217,837 7.0% $ 15,192,660 $ (25,177) $ 3,792,773 $ 3,767,596
Trust and Agency Funds
•
Cemetery Trust $ 12,000 $ 12,000 $ 12,000 $ 12,000 0.0% $ 21,000 $ 9,000 $ 656,731 $ 665,731
YakCorps Agency Fund - 655,777 643,060 655,000 1.9% 655,000 - - -
Total Trust and Agency Funds $ 12,000 $ 667,777 $ 655,060 $ 667,000 1.8% $ 676,000 $ 9,000 $ 656,731 $ 665,731
Debt Service
L.I.D.Guaranty $ - $ - $ - € $ - n/a $ - $ - $ 25,329 $ 25,329
PFD Debt Service 1,026,050 1,024,025 1,024,025 1,029,213 0.5% 1,029,213 - 165,605 165,605
General Obligation Bonds 3,438,378 3,736,939 3,736,939 3,746,047 0.2% 3,749,832 3,785 81,814 85,599
L.I.D.Debt Service 15 48,000 - - n/a - - - -
E
Water-Irrigation/Sewer Bonds 2,132,154 2,129,054 2,129,054 : 2,127,754 (0.1%) 2,126,855 (899) 2,021,467 2,020,568
Total Debt Service $ 6,596,597 1 $ 6,938,018 $ 6,890,018 $ 6,903,013 0.2% $ 6,905,899 $ 2,886 $ 2,294,216 $ 2,297,101
1
Total City Budget $184,602,345 1 $238,800,092 $207,235,868 $238,803,968 15.2% $219,768,333 $(19,035,635) $ 70,161,400 $ 51,125,764
Memorandum- 7
CITY OF Takirnas
2017 BUDGET IN BRIEF
The Budget In Brief provides a high-level overview of the final 2017 budget, along with significant
issues that are anticipated to have a material impact in 2017.
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 2017 budget is balanced within available
resources, 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.
BUDGET OVERVIEW
The chart below compares the 2016 year-end estimate to the 2017 budget in summary format.
2016 ESTIMATE/2017 BUDGET COMPARISON
Revenues Expenditures
2016 2016
Year-End 2017 % Year-End 2017
Estimate Budget Chng Estimate Budget Chng
General $ 62,860,032 $ 65,087,882 3.5% $ 62,972,563 $ 65,328,043 3.7%
Parks and Recreation 5,551,665 5,547,225 (0.1%) 5,481,878 5,583,642 1.9%
Street&Traffic Operations 5,239,988 7,583,540 44.7% 5,407,091 7,518,427 39.0%
General Government Subtotal 73,651,685 78,218,647 6.2% 73,861,531 78,430,112 6.2%
Utilities/Other Operating 73,510,095 73,661,646 0.2% 71,667,910 75,095,315 4.8%
Capital Improvement 34,748,790 41,034,953 18.1% 34,437,176 58,577,309 70.1%
Risk Management Reserves 4,894,000 4,078,528 (16.7%) 5,507,735 3,913,381 (28.9%)
Employee Benefit Reserves 14,069,749 15,192,660 8.0% 14,216,438 15,217,837 7.0%
Trust and Agency Funds 664,060 676,000 1.8% 655,060 667,000 1.8%
G.O.Bond Debt Service 4,767,028 4,779,045 0.3% 4,760,964 4,775,260 0.3%
Utility Rev Bond Debt Service 2,131,180 2,126,855 (0.2%) 2,129,054 2,127,754 (0.1%)
Total $208,436,587 $219,768,333 5.4% $207,235,868 $238,803,968 15.2%
The estimated revenues for all funds,including beginning balances,are$289.9 million. This represents an
increase of$11.3 million or 4.1%more than the 2016 Year-End Estimate of$278.6 million.
Budget in Brief-1
The expenditure budget for FY 2017 for all funds is$238.8 million. This is$31.6 million or 15.2%more than
the 2016 Year-End Estimate of$207.2 million. Most of this increase($24.1 million)is in the area of capital
improvement.
2017 BUDGET SUMMARY
Estimated Estimated
2017 Beg. 2017 2017 Use of 2017 Ending
Fund Balance Revenue Expenditures Reserves Balance
General Fund $ 5,754,842 $ 65,087,882 $ 65,328,043 $ (240,161) $ 5,514,681
Parks and Recreation 605,689 5,547,225 5,583,642 (36,417) 569,272
Street&Traffic Operations 582,448 7,583,540 7,518,427 65,113 647,562
General Government Subtotal 6,942,980 78,218,647 78,430,112 (211,465) 6,731,515
Utilities/Other Operating 21,313,948 73,661,646 75,095,315 (1,433,669) 19,880,279
Capital Improvement 35,004,602 41,034,953 58,577,309 (17,542,357) 17,462,246
Risk Management Reserves 156,149 4,078,528 3,913,381 165,147 321,295
Employee Benefit Reserves 3,792,773 15,192,660 15,217,837 (25,177) 3,767,596
Trust and Agency Funds 656,731 676,000 667,000 9,000 665,731
G.O.Bond Debt Service 272,748 4,779,045 4,775,260 3,785 276,533
Utility Revenue Bond Debt Service 2,021,467 2,126,855 2,127,754 (899) 2,020,568
Total $ 70,161,400 $219,768,333 $238,803,968 $(19,035,635) $51,125,764
➢ The use of reserves of$19.0 million is programmed to be primarily out of capital funds, which is
typical as reserves are built over time to be used for major projects. Wastewater, Stormwater,
and Water utilities are in the middle of major capital programs.
➢ 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 2017 budget that should be noted are:
Revenues
➢ The general operating property tax levy for FY 2017 is estimated to be$3.1117 per$1,000 of
assessed value, a slight increase of$0.0238 or 0.8% above the current rate.
➢ At the November 28, 2016 meeting, Council determined to add two new revenues and change
the parameters on a third:
• Add a Brokered Natural Gas utility tax, which would bring in an estimated revenue of
$70,000 annually.
• Establish a Transportation Benefit District (TBD), which would allow the City to impose
a vehicle tab fee. Currently budgeted at$15.00, this revenue is estimated to add about
$1.0 million annually to City revenues ($500,000 in 2017).
• Increase the lid on electric,natural gas and telephone tax, from$4,000 to$8,000 per
customer per month for 4% of the total 6%, which will add about$130,000 in revenue.
Budget in Brief-2
➢ Planning is instituting an increase in some land use application fees in order to create a more
equitable sharing of the processing costs between the City and private development-the
additional revenue is expected to be about$50,000.
➢ Refuse is implementing a rate increase that will average about 7.1%in total, ranging from$1.13
to$1.28 per account per month. This rate increase will support the increase in landfill charges,
and start to rebuild reserves so that a recycling program can be considered in a few years.
➢ Fire added a fire inspection fee,which is expected to generate about$250,000 in 2017.
➢ Water, Wastewater, and Stormwater,utilities are budgeting rate increases in 2017-8.5%, 3.0%,
and 63.1%respectively. Irrigation has no budgeted rate changes for 2017. Recent rate studies
had indicated an increased need for all but Irrigation in previous years,but management
postponed any rate adjustments until 2017.
Personnel
➢ 767.70 total proposed full-time (FTE) positions in all funds for Fiscal Year 2017.
➢ A net increase of 5.25 FTE's from 2016-1.25 in General Government;4.00 in other funds.
Capital Improvements
The City will invest$58.6 million in FY 2017 to address its capital needs. The top three projects consist
of the Yakima Central Plaza($10.8 million); Rebuilding of Nelson Dam in the Irrigation Capital Fund
($8.0 million), and work on a Speedway Lift Station in Wastewater ($7.0 million).
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 a rate of$3.1117 per$1,000 of assessed value in Fiscal Year 2017. 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$416,000 or 2.3%more in the FY 2017 levy than it did in FY 2016,made up of 1.3%for new
construction and the 1.0%increase.
The 2017 General Government incremental revenue growth of$4.6 million is based on the following:
Budget in Brief-3
➢ Proposed 1%inflation adjustment in property taxes plus an estimate of $416,000
1.3%new construction (Because this year's implicit price deflator is only 0.953% a
super majority (5-2)vote and a declaration of"substantial need" was obtained
to pass a 1%increase.)
➢ 3.8% growth in sales tax 640,000
(2012-2014 growth above 6.0%-2015 2.9%, 2016 est.4.0%)
➢ Brokered natural gas utility tax 70,000
➢ New Transportation Benefit District (TBD) (half year-Gen Gov't only) 112,500
➢ Lifting of lid for electric,natural gas, and telephone utilities 130,000
➢ Utility tax growth-includes rate increases for City utilities 620,000
➢ Sale of two Tiger Mart locations 400,000
➢ Other charges for service (City Service, Utility Billing) 439,000
We have balanced the 2017 General Government Fund budget using the following strategies:
➢ Instituting a 1.2%vacancy rate. Savings: $675,000
2%payroll vacancy savings dropped to 1.2%--from$1,085,000 to
$675,000 (savings haven't materialized because of accrued leave
cashouts, additional overtime, and medical fund pressure)
➢ Elimination of 4 vacant positions in General Government Savings: 345,000
➢ Imposition of Fire Inspection Fee, Increase Zoning-Land use services fee Revenue: 300,000
MAJOR POLICY CONSIDERATIONS
The 2017 budget includes the following investments in the community's key priorities:
Strategic Priority Budgeted Item(s) Amount
New Revenue
($714,000) Establish brokered Natural Gas utility tax $ (70,000)
lifted lid on electric,natural gas and telephone tax (130,000)
Establish Transportation Benefit District(TBD)/$15 tab fee(half year) (514,000)
Public Safety(PS)
$4,513,100 Online reporting system 49,000
Police/Legal Center reconfiguration 20,000
Police fleet replacements 400,000
Fire apparatus(2015 Strategic Initiative) 1,500,000
Facility remodel and modernization 307,850
Add one Fire Maintenance Mechanic(net of Temp reduction) 74,800
Add three firefighters(9 months) 209,250
Fire Inspection fee (250,000)
Add one Public Safety Communications Supervisor 90,200
Refurbish Communications vehicle 12,000
Energy conservation measure-LED lighting 2,100,000
Budget in Brief-4
Strategic Priority Budgeted Item(s) Amount
Economic Development(ED)
$14,902,400 Economic Development community support 318,333
Public Market/Business Incubator location evaluation 16,667
Yakima Central Plaza 10,817,000
Cascade Mill Redevelopment project 1,200,000
Replace Ford tractor at the Airport 43,000
Add one Airport Assistant Manager 102,400
Yakima Transit marketing 100,000
Purchase&install 25 passenger counters for Transit system 50,000
Upgrade Transit Center cameras 40,000
Replace 3 administrative vehicles for Transit 100,000
Purchase&install 10 solar bus shelters-Transit 130,000
Transit ADA sidewalk improvements 100,000
Transit buses(carryover of 2016 Strategic Initiative) 1,885,000
Neighborhood&Community Building(NC)
$33,221,100 City Hall facility projects 1,292,000
Airport capital projects 1,950,000
Arterial Street capital improvements 4,516,100
Wastewater capital improvements 12,825,000
Wastewater rate increase (577,000)
Add one Pretreatment Crew Leader-Wastewater 85,000
Stormwater capital improvements 3,900,000
Stormwater rate increase (1,357,000)
Water capital improvements 1,444,000
Water rate increase (740,000)
Irrigation capital improvements 8,000,000
Refuse rate increase (473,000)
Equipment Rental Shop equipment 88,000
Replace fuel management system 175,000
Parks&Recreation capital improvements 2,013,000
Henry Beauchamp Community Center repair/replacement 30,000
Sidewalk repair/installation&tree removal 50,000
Partnerships(PA)
$5,640 Capitol Theatre Committee Management fee increase 5,640
Public Trust&Accountability(PT)
$1,554,500 Upgrade DA-III(50%)to City Records Assistant(100%) 10,800
Replace Telephone Tech with Telecommunications Analyst 9,500
Add 2 modules to NEOGov software-Human Resources 39,200
Purchase Workiva reporting software-Finance 29,000
Replace a Legal Assistant II with 50%Purchasing position (38,000)
Land development fee increase (50,000)
Planning reorganization($23,300 in 2018) -
Full size copier/scanner-Engineering 18,000
Fleet vehicle additions and replacements 1,536,000
Budget in Brief-5
2017 EXPENDITURE BUDGET BY FUND
($238.8 MILLION)
Risk Trust and
Management Agency Funds
Capital Reserves Employee $0.7
p $3.9 0.3%
ImprovementBene fit
$58.6 1.6% Reserves
24.5% $15.2 G.O.Bond Debt
6.4% Service
$4.8
2.0%
Utility Revenue
Bond Debt
Service
$2.1
0.9%
General Fund
$60.8
Utilities/Other 27.4%
Ope rating
$75.1
31.4%
Stre et&Tra ffic Parks and
Operations Recreation
$5.1 $5.6
3.1% 2.3%
2017 RESOURCES BUDGET BY FUND
($289.9 MILLION)
Risk Trust and
Management Agency Funds
Reserves Employee $5.1
Capital $4.2 Benefit 0.5%
Improvement 1.5% Reserves
$76.0 $19.0 G.O.Bond Debt
26.2% 6.5% Service
$5.1
1.7%
Utility Revenue
Bond Debt
Service
$4.1
1.4%
General Fund
Utilitie s/Othe $70.8
Operating 24.4%
$95.0
32.8%
Parks and
Recreation
Resources=
Stre et&Traffic $6.2
Revenues plus Ope rations 2.1%
Beginning Fund Balance $8.2
2.8%
Budget in Brief-6
ORDINANCE NO. 2016 -
AN ORDINANCE adopting a budget for the City of Yakima, Washington, for the year
2017; and making appropriations for estimated expenditures.
WHEREAS, on or before the 28th day of October, 2016, a Preliminary Budget Summary
for the City of Yakima for the year 2017 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 28, 2016, the City Council held hearings on the
budget and on parts thereof, and on November 15, 2016 and on December 6, 2016, 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 2017 is hereby
adopted in its final form and content as set forth in the budget document entitled "City of
Yakima, Annual Budget - 2017," which is attached hereto as Schedule A and incorporated by
reference herein. There is hereby appropriated for expenditure during the year 2017 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, 2017, upon its passage and
publication as provided by law.
PASSED BY THE CITY COUNCIL, signed and approved this 13th day of December,
2016.
Kathy Coffey, Mayor
ATTEST:
City Clerk
Publication Date:
Effective Date:
City of Yakima
Annual Budget-2017
Schedule A
Summary of Appropriations by Fund
2017 2017
Projected Budget %of
Fund/Description Resources Appropriation Budget
000 General Fund $ 70,842,724 $ 65,328,043 27.4%
123 Economic Development 183,676 134,266 0.1%
124 Community Development 2,519,616 1,486,742 0.6%
125 Community Relations 1,435,039 644,764 0.3%
131 Parks&Recreation 6,152,914 5,583,642 2.3%
141 Streets&Traffic Operations 8,165,988 7,518,427 3.1%
142 Arterial Street 5,238,505 4,867,075 2.0%
144 Cemetery 300,426 280,957 0.1%
150 Emergency Services 1,486,747 1,417,413 0.6%
151 Public Safety Communications 3,849,632 3,775,176 1.6%
152 Police Grants 867,312 384,078 0.2%
161 Downtown Improvement District 210,619 201,353 0.1%
162 Trolley(Yakima Interurban Lines) 2,032 1,355 0.0%
163 Front St Business Impr Area 3,792 3,500 0.0%
170 Tourist Promotion(Cony Ctr) 2,227,801 1,709,375 0.7%
171 Capitol Theatre 472,240 434,878 0.2%
172 PFD Revenue-Convention Center 1,466,366 733,213 0.3%
173 Tourist Promotion Area 788,722 707,200 0.3%
174 PFD Revenue-Capitol Theatre 844,228 661,400 0.3%
198 FRS/Capitol Theatre Reserve - - 0.0%
221 LID. Guaranty 25,329 - 0.0%
272 PFD Debt Service 1,194,818 1,029,213 0.4%
281 General Obligation Bonds 3,329,816 3,320,582 1.4%
283 1994 CJ/I-82 LT GO Bonds - - 0.0%
284 1995 UT GO Bonds - - 0.0%
287 1996 LT GO Convention Center Bonds 501,830 425,465 0.2%
289 LID. Debt Service - - 0.0%
321 CBD Capital Improvement 11,653,172 10,888,560 4.6%
322 Capitol Theatre Construction 305,391 60,000 0.0%
323 Yakima Rev Development Area 2,424,125 2,168,686 0.9%
331 Parks&Recreation Capital 2,367,360 2,031,000 0.9%
332 Fire Capital 2,675,447 2,648,617 1.1%
333 Law&Justice Capital 1,048,868 693,000 0.3%
342 Public Works Trust Construction 2,042,539 1,655,114 0.7%
343 REET 2 Capital Construction 1,029,589 782,452 0.3%
344 Street Capital Fund 714,962 401,500 0.2%
370 Convention Center Capital Impr 954,475 385,000 0.2%
392 Cum.Reserve for Capital Impr 428,298 - 0.0%
Appropriation Schedule-1
City of Yakima
Annual Budget-2017
Schedule A
Summary of Appropriations by Fund
2017 2017
Projected Budget %of
Fund/Description Resources Appropriation Budget
421 Airport Operating Fund 1,396,260 1,248,700 0.5%
422 Airport Capital Fund 2,904,215 2,815,089 1.2%
441 Stormwater Operating 3,379,518 3,159,881 1.3%
442 Stormwater Capital 4,104,907 3,900,000 1.6%
462 Transit 11,864,379 9,447,643 4.0%
464 Transit Capital Fund 7,356,848 2,009,675 0.8%
471 Refuse 7,460,441 6,914,474 2.9%
472 Wastewater Facilities Capital Rsv 2,668,809 800,000 0.3%
473 Wastewater Operating 28,056,663 23,510,252 9.8%
474 Water Operating 12,166,391 10,208,593 4.3%
475 Irrigation Operating 2,675,718 1,737,460 0.7%
476 Wastewater Construction 9,014,767 8,910,000 3.7%
477 Water Capital 5,305,143 1,444,000 0.6%
478 Wastewater Capital 4,535,123 3,750,000 1.6%
479 Irrigation Capital 9,267,013 8,367,542 3.5%
481 1998 Water Revenue Bond Reserve - - 0.0%
483 1996 Wastewater Revenue Bond Reserve - - 0.0%
484 1991 Water/Wastewater Revenue Bond Red - - 0.0%
486 2008 Water Bonds 598,580 231,500 0.1%
488 2008 Wastewater Bonds 412,238 411,813 0.2%
489 1991 Water/Wastewater Revenue Bond Red - - 0.0%
491 2004 Irrigation Bonds 352,356 322,141 0.1%
493 2003 Wastewater Bonds 2,785,148 1,162,300 0.5%
494 Revenue Bond - - 0.0%
512 Unemployment Compensation 658,600 227,353 0.1%
513 Employees Health Benefit 13,853,627 12,308,313 5.2%
514 Workers'Compensation 1,843,287 1,290,919 0.5%
515 Risk Management 4,234,677 3,913,381 1.6%
516 Wellness/EAP 227,348 101,800 0.0%
551 Equipment Rental 8,729,711 4,603,125 1.9%
555 Environmental Fund 1,037,331 422,950 0.2%
560 Public Works Administration 1,550,935 1,266,566 0.5%
612 Firemen's Relief&Pension 2,402,570 1,289,452 0.5%
632 YakCorps 655,000 655,000 0.3%
710 Cemetery Trust 677,731 12,000 0.0%
$289,929,733 $238,803,968 100.0%
Appropriation Schedule-2