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Home My WebLink About12/12/2017 09 2018 Budget for the City of Yakima1 BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. 9. For Meeting of: December 12, 2017 ITEM TITLE: Ordinance adopting a 2018 Budget for the City of Yakima SUBMITTED BY: Cliff Moore, City Manager Tara Lewis, Financial Services Manager SUMMARY EXPLANATION: In accordance with state law, the City is required to adopt a budget prior to the end of the preceding year. Attached is an Ordinance to adopt the final 2018 Budget for the City of Yakima. The initial 2018 Budget as proposed by staff was first presented at a series of Study Sessions on October 10th, 12th, 17th and 19th, 2017. As a result of those sessions various modifications were made according to Council direction. The resulting 2018 Preliminary Budget was filed with the City Clerk and posted online for public review on November 2, 2017. Subsequently, two Public Hearings have been held regarding that Preliminary Budget on November 21 and December 5, 2017. Two Ordinances were required as a result of Policy updates that were included in the Preliminary Budget, one regarding the elimination of a cap on utility tax and one regarding a vehicle tab fee to fund the Transportation Benefit District (TBD) project list that was developed and adopted in 2017. Those ordinances were passed by Council at their Business Meeting on December 5, 2017. The final 2018 Budget appropriation is attached to the Ordinance as Schedule A. Preceding the Ordinance is a summary analysis and discussion of the major points of the 2018 Final Budget along with illustrative charts and lists. ITEM BUDGETED: STRATEGIC PRIORITY: Public Trust and Accountability APPROVED FOR SUBMITTAL: City Manager STAFF RECOMMENDATION: Pass ordinance BOARD/COMMITTEE RECOMMENDATION: ATTACHMENTS: Description Upload Date D 2018 Final Budget Transmittal 12/6/2017 D 2018 Budget Ordinance with Schedule A 12/6/2017 Type Cover Memo Ordinance 2 3 Memorandum Date: December 12, 2017 To: The Honorable Mayor and Members of City Council From: Cliff Moore, City Manager Tara Lewis, Financial Services Manager Subject: 2018 Budget Adoption We are pleased to transmit the final 2018 City of Yakima Budget for Council's consideration and adoption. This is a prudent budget balanced citywide within available resources of $300.3 million. The overall 2018 budget represents a 12.5% increase over the projected 2017 year-end estimate as well as citywide ending fund balance reserves of $60.4 million or 25.2% of budgeted expenditures. Increases in expenditures primarily represent equipment and facility improvements in the Enterprise funds which are not funded by the general revenues of the City, but have their own dedicated revenue sources. General Government Budget Included in the final 2018 Budget is a 1% increase in the Ad Valorem Property Tax which was passed by Council after a Public Hearing at their Business Meeting on November 7, 2017. This vital revenue source represents approximately one quarter of General Government funding, yet due to legal restrictions it is not allowed to keep pace with inflationary increases that drive up the costs obligated to be paid by General Government. The impact to the budget over time is that this revenue source has been covering smaller and smaller portions of the services provided to the community - notably public safety, street maintenance and parks and recreation services. Approximately another quarter of General Government funding is derived from taxes on utilities provided within the City. A 6% tax is charged on the gross revenues of the companies providing electrical service, natural gas, telephone and cellular telephone services. There is also a 6% use tax charged on brokered natural gas. Historically the City has limited part of the tax paid by the largest utility customers. While there was a 2% tax charged on all revenues, 4% of the tax was limited to a cap of $4,000 until 2017 and then to a cap of $8,000. The 2018 Budget includes revenue expected to be realized from the elimination of this cap. A utility customer's monthly bill would have to exceed $200,000 to have any impact on an individual customer within the City. The elimination of this cap will help make up for the limit on the property tax revenue discussed above. The two revenue sources mentioned above together account for approximately one half of General Government revenues. The other half is made up of sales taxes (one quarter), and the final quarter is made up of all other revenues combined (fees, charges, grants, etc.). Since a primary objective for the City in developing the 2018 Budget is the restoration of General Government Fund Balance to policy level, there are very few new expenditure initiatives. New items included in the 2018 Budget to be funded from General Government revenues include Trolley repairs and improvements ($10,000), a citywide wellness fair ($5,000) and registrations for a Domestic Violence Conference ($2,000). 2018 Budget Adoption Memorandum - 1 4 The 2018 year-end General Government operating reserves are projected to be $8.5 million, which is 10.9% of 2018 expenditures. This represents an increase in operating reserves expressed as a percentage of expenditures from the 2017 year-end estimate of 10.3%. The following chart depicts the City's General Government reserve balances and their percent of expenditures from 2015 and 2016, as estimated for 2017 and as projected for 2018. General Government RESERVE BALANCES GENERAL GOVERNMENT FUNDS 2017 2015 2016 Year End 2018 Actual Actual Estimate Projected Change Beginning Fund Balance $ 9,412,400 $ 7,152,826 $ 7,933,127 $ 7,934,677 Revenues 70,265,428 74,051,847 76,698,525 78,617,140 2.5% Expenditures 72,525,002 73,271,546 76,696,975 78,022,587 1.7% Ending Fund Balance $ 7,152,826 $ 7,933,127 $ 7,934,677 $ 8,529,230 7.5% Reserve as a % of Expenditures 9.9% 10.8% 10.3% 10.9% Note: 2017 Year -End Estimate is shown net of a one-time LED project revenue and expenditure of $2,783,846 for comparability purposes. The General Government operating reserves are currently less than the City's financial management goal of 16.7%, although as recently as the end of 2013 those reserves were above target at 17.1% of expenditures. A number of events occurred in 2014 and 2015 that resulted in using reserve balances to satisfy obligations where revenue fell short of budget and expenditures grew at the same time. During 2016 and 2017 the City has emphasized its operational goal of fiscal sustainability by working to rebuild the reserves. This final 2018 Budget reflects the progress already made toward this goal in its estimated beginning fund balance and extends this commitment of careful budgetary management throughout the coming year to end 2018 in a stronger fiscal position. It is anticipated that with continued fiscal prudence, reserves will increase to meet or exceed the policy level of 16.7% over the next few years. 2018 Budget Adoption Memorandum - 2 5 Citywide Budget The following chart summarizes the total City Budget, including estimated beginning fund balances, revenues, expenditures and ending balances. General Fund Parks and Recreation Street & Traffic Operations General Government Subtotal Utilities/Other Operating Capital Improvement Risk Management Reserves Employee Benefit Reserves Trust and Agency Funds G.O. Bond Debt Service Utility Revenue Bond Debt Service Total 2018 FINAL BUDGET SUMMARY Estimated 2018 Beg. Fund Balance 2018 Projected Revenues $ 7,205,269 72,803 656,605 $ 67,729,276 5,469,405 5,418,459 2018 Proposed Expenditures $ 67,107,548 5,485,805 5,429,233 Increase in (Decrease in) Reserves Estimated 2018 Ending Balance $ 621,728 $ 7,826,997 (16,400) 56,403 (10,774) 645,831 7,934,677 17,808,972 36,317,593 113,550 1,131,513 1,833,592 251,607 2,021,465 78,617,140 75,091,805 52,064,602 4,173,141 14,395,290 1,812,924 4,553,955 2,129,280 78,022,586 77,059,523 57,120,095 4,021,304 15,032,112 1,896,483 4,551,107 2,131,454 594,554 (1,967,718) (5,055,493) 151,837 (636,822) (83,559) 2,848 (2,174) 8,529,231 15,841,254 31,262,100 265,387 494,691 1,750,033 254,455 2,019,291 $ 67,412,969 $ 232,838,137 $ 239,834,664 $ (6,996,527) $ 60,416,442 Fund balances in non -General Government funds are projected to decrease overall, primarily in Utility and Capital funds with new and ongoing projects. It is customary for these funds to accumulate reserves for the purpose of upcoming expenditures toward new equipment and facility improvements. Capital Improvements The 2018 Budget includes capital investment expenditures of $57.1 million to address various needs in plant, equipment and infrastructure replacement and refurbishment. These capital improvements and expenditures are accounted for in the City's capital funds and the equipment replacement portion of the Equipment Rental & Replacement fund. Some major projects were budgeted in prior years and have been carried forward. Some projects included in these totals will not be completed in 2018 and will be carried forward into future years. Please refer to the Policy Issue section for the new projects and equipment included in the 2018 Budget. 2018 Budget Adoption Memorandum - 3 6 Staffing Proposed full-time equivalent employees are 766.95 citywide. A reorganization in General Government staffing effected a decrease of 0.75 FTE's. Public Works increased by 2.0 FTE's. The following chart summarizes the general government (i.e. tax -supported) and non -general government position additions, deletions and transfers implemented mid -year 2017 as well as those included in the 2018 budget. Each of the Non -General Government proposals has an identified revenue source or other expenditure reduction to support the additional cost. 2018 BUDGETED POSITION ADJUSTMENTS Fund/Department - Description # of FTEs Gen Govt Base & Benefits Other Base & Benefits Remarks Mid -Year Changes General Government Assistant City Manager Water Services Specialist Director of Utilities Economic Development Asst Total General Gov't 2018 Budget Changes General Fund Emergency Management Specialist Senior Planner Total General Fund Other Funds Solid Waste Maintenance Worker Custodian Total 2018 Budget Changes 1.00 $ 182,400 0.25 13,800 (1.00) (147,000) (1.00) (82,600) (0.75) (33,400) (1.00) (103,800) 1.00 82,600 — (21,200) 1.00 1.00 2.00 New position / reorganization Position increased to full time Deleted due to reorganization Deleted due to reorganization — Program returned to County — Position reactivated 65,400 New Position 51,500 New Position 116,900 Total Budget Changes 1.25 ($54,600) $116,900 Total General Gov't Positions Total Other Fund Positions Total Positions (0.75) 2.00 1.25 In the 2018 budget, the City continues to accommodate Federal and State unfunded mandates and provide critical public safety and other essential services. In an effort to minimize costs and increase efficiencies, management has increased, decreased, and reorganized personnel resources in both the 2017 and 2018 budget. It should be noted that the per capita number of General Government full-time equivalent employees (FTE's) has decreased per thousand of population from 6.0 FTE's in 2008 down to 5.3 FTE's in 2017. 2018 Budget Adoption Memorandum - 4 Major Policy Considerations The following chart represents new initiatives included in the 2018 Budget: 2018 POLICY ISSUES Policy Issue Fund / Funding Source Amount 7 Revenue Options Eliminate Utility Tax Cap on External Utilities Transportation Benefit District Funding City Administration City -Wide Wellness Fair Convention Center Mobile Information Center Kiosk Consultant Services Trolley Trolley Facility Repairs & Maintenance Legal Domestic Violence Conference Yakima Airport Parking Fee Increase Airport Layout Plan Update West General Aviation apron Public Works Transit Solar Lighted Passenger Shelters Sidewalks & ADA ramps Dial -A -Ride Passenger Counter System Tracking & Reporting Software Solid Waste - Refuse Add one Solid Waste Maintenance Position Curbside Recycling Wastewater Security Fencing Ultraviolet Disinfection System Updates Wastewater Trunk Line Upsizing 72nd Ave Wastewater Service Aging Infrastructure Repair/Replacement Stormwater Maintenance of Yakima Urban Streams Streets and Intersections Infrastructure General Fund Revenue Vehicle Tab Fee/ Street Construction Fund General Fund Hotel/Motel Tax Hotel/Motel Tax General Fund General Fund Airport Revenue Airport Capital Grants FAA - 90% PFC - 10% Airport Capital Grants FAA - 90% PFC - 10% Transit Capital Fund / Grant Transit Capital Fund Transit Capital Fund Transit Capital Fund Refuse Fund Refuse Fund Wastewater Capital Wastewater Capital Wastewater Capital Wastewater Capital Wastewater Capital Stormwater Capital Stormwater Capital Up to $550,000 $1.3 to $1.5 million annually $5,000 $25,000 $10,000 $10,000 $2,000 $38,000 $500,000 $1,300,000 $130,000 $100,000 $50,000 $150,000 $59,000 $30,000 $150,000 $500,000 2018 - $1,000,000 2019 - $1,000,000 $120,000 $750,000 $100,000 per year $1,000,000 2018 Budget Adoption Memorandum - 5 8 2018 Budget Adoption Memorandum - 6 9 2018 EXPENDITURE BUDGET BY FUND Trust & Agency Funds GO Bund Debt Servic 51,896,483 54,551,107 Employee Benefit Reserves 515,032,112 Risk Management Reserves 62''`' 54,021,304 1.7'i;, Capital Improvement 557,120,095 Utility Bund Debt Service 52,131,454 0.9% Utilities/Other Operating 577,059,523 32.1 2018 REVENUE BUDGET BY FUND Trust & Agency Funds 51,812,924 Employee Benefit Reserves 514,395,_'90 Risk tilanagement Reserves h,2'' 54,173,141 1.8",, Capital Improvement 552,064,602 General Fund 567,107,548 Parks 55,485,805 Streets & Traffic 55,429,23 5 2.3 GO Bond Debt Service 54,553,955 2.0"s, Utility Bond Debt Service 52,129,280 Utilities/Other Operating $75,091,8115 32.3') General Fund 567,729,276 29.1`4 Parks 55,469,405 2.3,E Streets & Traffic 55,418,459 2.3", 2018 Budget Adoption Memorandum - 7 10 2018 FINAL BUDGET BY CITY FUNCTIONAL GROUPING Expenditures 2016 Actual Expenditures 2017 Amended Budget 2017 Year -End Estimate 2018 Proposed Expenditures 2018 vs 2017 Est General Government City Management Indigent Defense City Council City Clerk/Records Human Resources Legal Municipal Court Planning Code Administration City Hall Facility Economic Development Police Fire Information Technology Intergovernmental Transfers Financial Services State Examiner Police Pension Utility Services Parking Purchasing Engineering Contingency Total General Fund Parks & Recreation Street & Traffic Operations Total General Government Funds $ 418,042 952,414 258,909 700,223 607,585 1,479,124 1,420,308 597,187 1,767,886 487,271 711,003 27,069,183 12,258,513 3,072,104 189,360 4,839,545 1,546,084 100,301 925,129 1,411,308 148,232 625,121 663,965 $ 399,805 965,500 252,176 582,429 724,580 1,703,161 1,496,999 669,715 1,877,343 521,591 743,507 28,119,824 13,128,867 3,478,097 155,287 5,352,664 1,625,592 117,000 964,997 1,674,646 177,640 608,463 753,162 (675,000) $ 400,677 1,030,000 253,946 696,269 688,503 1,704,107 1,470,272 593,524 1,831,218 547,859 621,085 28,559,803 13,626,565 3,562,363 157,487 4,009,924 1,594,351 128,526 928,497 1,734,863 178,407 593,796 688,831 $ 434,550 1,050,000 262,650 675,267 763,825 1,686,272 1,585,265 629,748 1,926,299 533,319 514,138 29,529,034 13,807,552 3,523,653 160,372 3,952,540 1,651,963 130,000 927,497 1,829,146 178,783 624,773 730,903 62,248,797 5,421,860 5,600,888 65,418,045 5,583,642 7,518,427 65,600,873 5,520,884 8,359,064 67,107,549 5,485,805 5,429,233 $ 73,271,545 $ 78,520,114 $ 79,480,821 $ 78,022,587 8.5 % 1.9 % 3.4 % (3.0)% 10.9 % (1.0)% 7.8 % 6.1 % 5.2 % (2.7)% (17.2)% 3.4 % 1.3 % (1.1)% 1.8 % (1.4)% 3.6 % 1.1 % (0.1)% 5.4 % 0.2 % 5.2 % 6.1 % n/a 2.3 % (0.6)% (35.0)% (1.8)% 2018 Budget Adoption Memorandum - 8 11 2018 FINAL BUDGET BY CITY FUNCTIONAL GROUPING Revenues 2018 Projected Revenue General Fund Parks & Recreation Street & Traffic Operations Total General Government Funds $ 67,729,276 5,469,405 5,418,459 2018 Estimated Beginning Fund Balance Ending Fund Balance $ 7,205,269 $ 72,803 656,605 7,826,996 56,403 645,831 Increase (Decrease) In Fund Balance $ 621,727 (16,400) (10,774) $ 78,617,140 $ 7,934,677 $ 8,529,230 $ 594,553 2018 Budget Adoption Memorandum - 9 12 2018 FINAL BUDGET BY CITY FUNCTIONAL GROUPING Expenditures 2016 Actual Expenditures 2017 Amended Budget 2017 Year -End Estimate 2018 Proposed Expenditures 2018 vs 2017 Est Other Operating/Enterprise Economic Development Community Development Community Relations Cemetery Emergency Services Public Safety Communications Police Grants Downtown Improvement District Trolley (Yakima Interurban Lines) Front St Business Impr Area Tourist Promotion (Cony Ctr) Capitol Theatre PFD Revenue -Convention Center Tourist Promotion Area PFD Revenue -Capitol Theatre Airport Operating Fund Stormwater Operating Transit Refuse Wastewater Operating Water Operating Irrigation Operating Equipment Rental Environmental Fund Public Works Administration Total Other Operating/Enterprise $ 207,132 1,189,804 560,671 254,482 1,373,260 3,505,645 358,017 198,017 80,450 8,097 1,641,685 420,497 724,692 662,836 628,855 1,108,923 2,752,882 8,234,002 6,416,963 21,129,918 9,922,482 1,881,467 5,606,206 184,160 1,199,053 $ 134,266 4,146,239 644,764 280,957 1,417,413 3,775,176 384,078 201,353 1,355 3,500 1,709,375 434,878 733,213 707,200 661,400 1,248,700 3,459,881 9,447,643 6,969,474 23,546,152 10,208,593 1,737,460 4,727,725 439,950 1,288,066 $ 101,339 4,111,372 638,185 278,424 1,425,987 3,838,360 396,692 184,853 29,220 3,500 1,699,375 443,278 733,213 707,200 661,400 1,234,845 3,475,153 9,350,506 6,986,115 23,591,186 10,269,135 1,767,461 5,577,018 164,500 1,272,359 $ 116,400 14.9 % 1,472,705 (64.2)% 634,098 (0.6)% 268,602 (3.5)% 1,411,607 (1.0)% 4,289,986 11.8 % 406,648 2.5 % 188,127 1.8 % 31,699 8.5 % 3,500 1,721,163 1.3 % 436,587 (1.5)% 733,213 707,200 661,400 1,278,178 3.5 % 3,251,193 (6.4)% 9,682,563 3.6 % 7,193,658 3.0 % 23,892,893 1.3 % 10,450,868 1.8 % 1,802,753 2.0 % 4,746,938 (14.9)% 422,950 157.1 % 1,254,593 (1.4)% (2.4)% 0/0 0/0 0/0 0/0 $ 70,250,196 $ 78,308,811 $ 78,940,676 $ 77,059,522 2018 Budget Adoption Memorandum - 10 13 2018 FINAL BUDGET BY CITY FUNCTIONAL GROUPING Revenues 2018 Estimated Increase 2018 Beginning Ending (Decrease) Projected Fund Fund In Fund Revenue Balance Balance Balance Other Operating/Enterprise Economic Development $ 117,016 $ 60,441 $ 61,057 $ 616 Community Development 1,481,868 1,013,102 1,022,265 9,163 Community Relations 674,990 786,392 827,284 40,892 Cemetery 264,950 53,994 50,342 (3,652) Emergency Services 1,389,235 90,658 68,286 (22,372) Public Safety Communications 4,241,221 65,262 16,497 (48,765) Police Grants 346,000 771,820 711,172 (60,648) Downtown Improvement District 200,340 8,718 20,931 12,213 Trolley (Yakima Interurban Lines) 31,704 59 64 5 Front St Business Impr Area 3,735 352 587 235 Tourist Promotion (Cony Ctr) 1,732,250 450,373 461,460 11,087 Capitol Theatre 430,720 24,438 18,571 (5,867) PFD Revenue -Convention Center 868,710 790,008 925,505 135,497 Tourist Promotion Area 707,550 78,404 78,754 350 PFD Revenue -Capitol Theatre 660,500 191,987 191,087 (900) Airport Operating Fund 1,271,379 61,383 54,584 (6,799) Stormwater Operating 3,779,989 540,878 1,069,674 528,796 Transit 9,199,125 2,103,840 1,620,402 (483,438) Refuse 7,298,235 745,180 849,757 104,577 Wastewater Operating 22,762,417 4,638,559 3,508,083 (1,130,476) Water Operating 9,712,000 1,632,061 893,193 (738,868) Irrigation Operating 1,803,500 902,793 903,540 747 Equipment Rental 4,630,292 1,794,472 1,677,826 (116,646) Environmental Fund 280,000 675,099 532,149 (142,950) Public Works Administration 1,204,079 328,697 278,183 (50,514) Total Other Operating/Enterprise $ 75,091,805 $ 17,808,970 $ 15,841,253 $ (1,967,717) 2018 Budget Adoption Memorandum - 11 14 2018 FINAL BUDGET BY CITY FUNCTIONAL GROUPING Expenditures Capital Improvement Arterial Street C.B.D. Capital Improvement Capitol Theatre Construction Yakima Rev Development Area Parks & Recreation Capital Fire Capital Law & Justice Capital Public Works Trust Construction REET 2 Capital Construction Street Capital Fund Convention Center Capital Impr Cum. Reserve for Capital Impr Airport FAA Stormwater Capital Transit Capital Reserve Wastewater Facilities Capital Rsv Wastewater Construction Water Capital Wastewater Capital Irrigation Capital Total Capital Improvement Contingency/Operating Reserves FRS/Capitol Theatre Reserve Risk Management Total Contingency/Operating Reserves 2016 Actual Expenditures $ 2,597,172 709,609 164,825 951,253 3,020,576 800,298 468,792 618,569 977,372 167 255,692 1,272,262 9,517,393 107,762 2,171,211 127,357 619,275 312,384 124,087 467,294 2017 Amended Budget 2017 Year -End Estimate 2018 Proposed Expenditures 2018 vs 2017 Est $ 4,867,075 10,888,560 202,000 2,168,686 2,225,500 2,648,617 833,600 1,674,614 782,452 401,500 412,000 115,000 2,815,089 3,900,000 2,269,675 879,000 8,910,000 1,444,000 3,750,000 8,367,542 $ 2,073,000 66,455 202,000 1,868,828 2,438,639 1,108,405 824,886 526,804 782,452 95,000 412,000 461,654 2,746,787 1,520,000 2,232,730 879,000 4,676,011 1,175,160 850,000 659,883 $ 4,902,457 10,838,560 60,000 11,500,142 105,000 80,000 695,000 476,495 777,646 550,000 466,560 10,000 3,884,193 2,450,000 500,000 1,250,000 5,560,000 1,696,500 2,950,000 8,367,542 $ 25,283,350 $ 59,554,910 $ 25,599,694 $ 57,120,095 136.5 % n/a (70.3)% 515.4 % (95.7)% (92.8)% (15.7)% (9.5)% (0.6)% 478.9 % 13.2 % (97.8)% 41.4 % 61.2 % (77.6)% 42.2 % 18.9 % 44.4 % 247.1 % n/a 123.1 % $ 36,641 $ - $ - $ n/a 3,352,878 3,813,381 3,696,323 4,021,304 8.8 % $ 3,389,519 $ 3,813,381 $ 3,696,323 $ 4,021,304 8.8 % 2018 Budget Adoption Memorandum - 12 15 2018 FINAL BUDGET BY CITY FUNCTIONAL GROUPING Revenues 2018 Projected Revenue Capital Improvement Arterial Street C.B.D. Capital Improvement Capitol Theatre Construction Yakima Rev Development Area Parks & Recreation Capital Fire Capital Law & Justice Capital Public Works Trust Construction REET 2 Capital Construction Street Capital Fund Convention Center Capital Impr Cum. Reserve for Capital Impr Airport FAA Stormwater Capital Transit Capital Reserve Wastewater Facilities Capital Rsv Wastewater Construction Water Capital Wastewater Capital Irrigation Capital Total Capital Improvement Contingency/Operating Reserves FRS/Capitol Theatre Reserve Risk Management Total Contingency/Operating Reserves $ 4,474,885 10,821,250 60,000 13,000,000 374,000 163,000 421,516 1,070,718 986,270 705,000 455,500 4,719,343 1,060,000 1,408,000 700,000 2,900,000 1,026,560 501,500 7,217,060 $ 52,064,602 $ 4,173,141 $ 4,173,141 2018 Estimated Beginning Fund Balance Ending Fund Balance $ 1,300,863 713,275 8,566 1,305,674 50,761 (24,925) 367,439 2,061,998 460,137 227,710 768,992 265,132 1,563,260 4,142,600 5,338,296 2,368,527 5,279,481 4,236,139 2,961,035 2,997,634 $ 873,291 695,965 8,566 2,805,532 319,761 58,075 93,955 2,656,221 668,761 382,710 757,932 255,132 2,398,410 2,752,600 6,246,296 1,818,527 2,619,481 3,566,199 512,535 1,847,152 Increase (Decrease) In Fund Balance $ (427,572) (17,310) 1,499,858 269,000 83,000 (273,484) 594,223 208,624 155,000 (11,060) (10,000) 835,150 (1,390,000) 908,000 (550,000) (2,660,000) (669,940) (2,448,500) (1,150,482) $ 36,392,594 $ 31,337,101 $ (5,055,493) $ - $ 113,550 $ 113,550 $ 265,387 $ 151,837 265,387 $ 151,837 2018 Budget Adoption Memorandum - 13 16 2018 FINAL BUDGET BY CITY FUNCTIONAL GROUPING Expenditures 2016 2017 Actual Amended Expenditures Budget 2017 Year -End Estimate 2018 Proposed Expenditures 2018 vs 2017 Est Employee Benefit Reserves Unemployment Compensation Employees Health Benefit Workers' Compensation Wellness/EAP Fund Total Employee Benefit Reserves Trust and Agency Funds Firemen's Relief & Pension YakCorps Agency Fund Cemetery Trust Total Trust and Agency Funds Debt Service L.I.D. Guaranty PFD Debt Service General Obligation Bonds Water-Irrigation/Sewer Bonds Total Debt Service Total City Budget $ 157,319 $ 227,353 11,050,950 12,308,313 1,424,351 1,290,919 57,279 101,800 $ 571,812 13,908,833 2,066,268 70,000 $ 182,706 12,961,129 1,821,376 66,900 $ 12,689,899 $ 13,928,385 $ 16,616,913 $ 15,032,111 (68.0)% (6.8)% (11.9)% (4.4)% (9.5)% $ 1,162,654 $ 1,289,452 $ 1,207,152 $ 1,229,483 1.8 % 655,000 655,000 655,000 12,000 12,000 12,000 12,000 0/0 0/0 $ 1,174,654 $ 1,956,452 $ 1,874,152 $ 1,896,483 1.2 % $ 25,329 1,024,025 3,736,939 2,129,054 1,029,213 1,029,213 3,746,047 3,746,047 2,127,754 2,127,754 1,029,850 3,521,257 2,131,454 $ 6,915,347 $ 6,903,014 $ 6,903,014 $ 6,682,561 n/a 0.1 % (6.0)% 0.2 % (3.2)% $ 192,974,517 $ 242,985,065 $ 213,111,591 $ 239,834,665 12.5 % 2018 Budget Adoption Memorandum - 14 17 2018 FINAL BUDGET BY CITY FUNCTIONAL GROUPING Revenues 2018 Projected Revenue Employee Benefit Reserves Unemployment Compensation Employees Health Benefit Workers' Compensation Wellness/EAP Fund Total Employee Benefit Reserves Trust and Agency Funds Firemen's Relief & Pension YakCorps Agency Fund Cemetery Trust Total Trust and Agency Funds Debt Service L.I.D. Guaranty PFD Debt Service General Obligation Bonds Water-Irrigation/Sewer Bonds Total Debt Service Total City Budget $ 194,750 12,786,620 1,383,920 30,000 $ 14,395,290 $ 1,136,924 655,000 21,000 $ 1,812,924 $ 1,029,213 3,524,743 2,129,280 $ 6,680,811 $ 232,838,137 2018 Estimated Beginning Fund Balance Ending Fund Balance $ 124,384 375,199 571,111 60,820 $ 136,428 200,690 133,655 23,920 Increase (Decrease) In Fund Balance $ 12,044 (174,509) (437,456) (36,900) $ 1,131,514 $ 494,693 $ (636,821) $ 1,168,623 $ 1,076,064 $ (92,559) 664,969 673,969 9,000 $ 1,833,592 $ 1,750,033 $ $ 165,605 86,002 2,021,465 164,968 89,488 2,019,291 $ (83,559) $ (637) 3,486 (2,174) $ 2,273,072 $ 2,271,322 $ (1,750) $ 67,412,971 $ 60,416,443 $ (6,996,528) 2018 Budget Adoption Memorandum - 15 18 2018 Budget Adoption Memorandum - 16 ORDINANCE NO. 2017 - 19 AN ORDINANCE adopting a budget for the City of Yakima, Washington, for the year 2018; and making appropriations for estimated expenditures. WHEREAS, on or before the 2nd day of November, 2017, a Preliminary Budget Summary for the City of Yakima for the year 2018 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 November 2, 2017, the City Council held hearings on the budget and on parts thereof, and on November 21, 2017 and on December 5, 2017, 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 2018 is hereby adopted in its final form and content as set forth in the budget document entitled "City of Yakima, Annual Budget - 2018," which is attached hereto as Schedule A and incorporated by reference herein. There is hereby appropriated for expenditure during the year 2018 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, 2018, upon its passage and publication as provided by law. PASSED BY THE CITY COUNCIL, signed and approved this 12th day of December, 2017. Kathy Coffey, Mayor ATTEST: City Clerk Publication Date: Effective Date: Appropriation Schedule - 2 City of Yakima Annual Budget - 2018 20 Schedule A SUMMARY OF APPROPRIATIONS BY FUND Fund/Description 001 General Fund 123 Economic Development 124 Community Development 125 Community Relations 131 Parks & Recreation 141 Streets & Traffic 142 Arterial Street 144 Cemetery 150 Emergency Services 151 Public Safety Communications 152 Police Grants 161 Downtown Yakima Impr District 162 Trolley 163 Front St Business Improvement Area 170 Tourist Promotion (Cony Ctr) 171 Capitol Theatre 172 PFD Rev - Convention Center 173 Tourist Promotion Area 174 PFD Rev - Capitol Theatre 272 PFD Debt Service 281 Misc LTGO Bonds 287 1996 LTGO Bonds 321 C.B.D. Capital Improvement 322 Capitol Theatre Construction 323 Yakima Revenue Development Area 331 Parks & Recreation Capital 332 Fire Capital 333 Law & Justice Capital 342 REET 1 343 REET 2 344 Streets Capital 370 Convention Center Cap Improvement 392 Cumulative Reserve - Capital Impr 421 Airport Operating 422 Airport FAA 441 Stormwater Operating 442 Stormwater Capital 2018 Projected Resources 2018 Budget Appropriation Budget Percent of $ 74,934,545 177,457 2,494,970 1,461,382 5,542,208 6,075,064 5,775,749 318,944 1,479,892 4,306,483 1,117,820 209,059 31,763 4,087 2,182,623 455,158 1,658,718 785,954 852,487 1,194,818 3,104,726 506,018 11,534,525 68,566 14,305,674 424,761 138,075 788,955 3,132,716 1,446,407 932,710 1,224,492 265,132 1,332,762 6,282,603 4,320,867 5,202,600 $ 67,107,548 28.0% 116,400 1,472,705 0.6% 634,098 0.3% 5,485,805 2.3% 5,429,233 2.3% 4,902,457 2.0% 268,602 0.1% 1,411,607 0.6% 4,289,986 1.8% 406,648 0.2% 188,127 0.1% 31,699 3,500 1,721,163 0.7% 436,587 0.2% 733,213 0.3% 707,200 0.3% 661,400 0.3% 1,029,850 0.4% 3,095,992 1.3% 425,265 0.2% 10,838,560 4.5% 60,000 11,500,142 4.8% 105,000 80,000 695,000 0.3% 476,495 0.2% 777,646 0.3% 550,000 0.2% 466,560 0.2% 10,000 1,278,178 0.5% 3,884,193 1.6% 3,251,193 1.4% 2,450,000 1.0% 0/0 0/0 0/0 0/0 0/0 0/0 0/0 Appropriation Schedule - 3 City of Yakima Annual Budget - 2018 Schedule A SUMMARY OF APPROPRIATIONS BY FUND Fund/Description 462 Transit Operating 464 Transit Capital 471 Refuse 472 Wastewater Capital - Facilities 473 Wastewater Operating 474 Water Operating 475 Irrigation Operating 476 Wastewater Capital - Construction 477 Water Capital 478 Wastewater Capital - Projects 479 Irrigation Capital 486 2008 Water Bond 488 2008 Wastewater Bond 491 2004 Irrigation Bond 493 2003 Wastewater Bond 512 Unemployment Comp 513 Employee Health Benefit Reserve 514 Workers' Compensation Reserve 515 Risk Management Reserve 516 Wellness/EAP 551 Equipment Rental 555 Environmental 560 Public Works Administration 612 Firemen's Relief & Pension 632 YakCorps 710 Cemetery Trust 2018 Projected Resources 2018 Budget Appropriation Budget 21 Percent of 11,302,965 6,746,296 8,043,415 3,068,527 27,400,977 11,344,061 2,706,293 8,179,481 5,187,699 3,462,535 10,214,694 598,580 414,662 352,354 2,785,148 319,134 13,161,819 1,955,031 4,286,691 90,820 6,424,764 955,099 1,532,776 2,305,547 655,000 685,969 9,682,563 500,000 7,193,658 1,250,000 23,892,893 10,450,868 1,802,753 5,560,000 1,696,500 2,950,000 8,367,542 231,000 413,813 321,341 1,165,300 182,706 12,961,129 1,821,376 4,021,304 66,900 4,746,938 422,950 1,254,593 1,229,483 655,000 12,000 $ 300,251,108 $ 239,834,665 4.0% 0.2% 3.0% 0.5% 10.0% 4.4% 0.8% 2.3% 0.7% 1.2% 3.5% 0.1% 0.2% 0.1% 0.5% 0.1% 5.4% 0.8% 1.7% 0/0 2.0% 0.2% 0.5% 0.5% 0.3% 0/0 Appropriation Schedule - 4