HomeMy WebLinkAbout10/09/2018 02 2019 Budget Preparation #1 1
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BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No. 2.
For Meeting of: October 9, 2018
ITEM TITLE: 2019 Budget Preparation#1
SUBMITTED BY: Ana Cortez,Assistant City Manager
SUMMARY EXPLANATION:
Session#1 reviews the preliminary 2019 budget. This session begins with a review of expenses,
reserve levels and deficits. The session continues with review of suggested cuts to address the
2019 deficit and ends with discussion on how to address structural deficits by changing the City's
business model. Staff will provide updated material no later than October 8, 2018.Also included
is the 2019 Preliminary Budget report.
ITEM BUDGETED:
STRATEGIC PRIORITY:
APPROVED FOR
SUBMITTAL: City Manager
STAFF RECOMMENDATION:
BOARD/COMMITTEE RECOMMENDATION:
ATTACHMENTS:
Description Upload Date Type
D session 1 10/5/2018 Colder Memo
D mrsc 10/5/2018 Omer Memo
D prelim budget 10/5/2018 Omer Memo
STUDY SESSION # 1
EXPENSES
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#1- EXPENSES- TODAY #2- REVENUES-
TOMORROW
1. GENERAL FUND 1. GENERAL FUND
2. 2019 EXPENSES: 2. RATES: UTILITIES
OBLIGATIONS +
COUNCIL PRIORITIES 3. FEES: CCP + OTHER
+ REAL OP
4. TAXES: OPTIONS
3. 2018 VS 2019 5. LEVIES: OPTIONS
4. 2019 EXP ENSES VS 6. BUSINESS MODEL
REVENUES CHANGES
5. BALANCING
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What Doesthe2O19 Budgetlell ?
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• A story about what is important in a community
• In Yakima our 2019 General Fund tells this story:
• Sales, utility and property taxes are important as they provide the three main
legs of the revenue stool
• 74.8% of General Fund expenditures is for public safety: Police Department,
Fire Department, Legal and Courts
• Yakima is out of balance- structural deficit
• It MAY also tell a new story- we will present a 1M effort
• City aesthetic and beauty (another side of safety)
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EXPENSES- General Fund r \
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• 2018: $64,879,941
• 2019: $64,012,970
• Good news, we brought you 2019<2018
• HOWEVER, the Revenue for 2019 is $63,226,694
• What is the difference? ($786,276)- yes, minus: Deficit
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CURRENT RESERVE BALANCE
2018
2016 2017 Year End 2019
General Fund-001 Only Actual Actual Estimate Projected Change
Beginning Fund Balance $ 5,539,189 $ 6,570,959 $ 6,664,551 $ 7,471,176
Revenues 61,374,514 63,018,704 64,161,628 63,226,694 (1.5)%
Expenditures 60,342,744 62,925,112 63,355,003 64,012,970 1.0 %
Ending Fund Balance $ 6,570,959 $ 6,664,551 $ 7,471,176 $ 6,684,900 (10.5)%
Reserve as a % of Expenditures 10.9% 10.6% 13.8% 12.5%
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POLICY VS REALITY
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GENERAL FUND RESERVE FORECAST VS POLICY LEVEL REQUIREMENTS
2018
2017 Year End 2019 2020 2021 2022 2023
General Fund-001 Only Actual Estimate Projected Forecast Forecast Forecast Forecast
General Fund Reserve Forecast $ 6,570,959 $ 6,664,551 $ 7,471,176 $ 6,684,900 $ 6,581,537 $ 6,410,346 $ 6,301,220
Policy Level Requirements @ 16.7% 10,508,494 10,580,286 10,690,166 10,861,209 11,165,323 11,466,786 11,787,856
Net Increase(Deficit) $ (3,937,535) $ (3,915,735) $ (3,218,990) $ (4,176,309) $ (4,583,786) $ (5,056,440) $ (5,486,636)
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INCOME/ LOSS
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GENERAL FUND OPERATING INCOME/LOSS ANALYSIS
2018
2017 Year End 2019 2020 2021 2022 2023
General Fund-001 Only Actual Estimate Projected Forecast Forecast Forecast Forecast
Operating Revenues $63,018,704 $64,161,628 $63,226,694 $64,933,815 $66,687,028 $68,554,265 $70,473,784
Operating Expenditures 62,925,112 63,355,003 64,012,970 65,037,178 66,858,219 68,663,391 70,585,966
Net Operating(Loss) $ 93,592 $ 806,625 $ (786,276) $ (103,363) $ (171,191) $ (109,126) $ (112,182)
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2019 GENERAL FUND(001)EXPENDITURE BUDGET
GENERALIZED CATEGORIES (V4.0,4111.410,1)01;
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Personnel Benefits
S12,205,716 WHERE IS THE
Salaries esr Wages
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•" Supplies,Equip,Misc
L482,469
2.3‘.,4 Capital Outlays
•• $'65,000
• • 0.1%
•• Services&Charges
•
• $8,591,891
•
13,9%
lotergov't Services
Transfers $1,9(M8,965
$1,777,040 3.0".
Debt Service
$998,849
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Records Purchasing
S427,846 5774,363 S717,8'57 52,442,199
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Reporting System LG F R S for the year 2017
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TOTAL EXPENDITURES SPENT ON PUBLIC SAFETY, LEGAL& MUNICIPAL COURT
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75 __.. 71, %
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kwiii;. 1 POLICY A- DO WE WANT TO ADOPT A GOAL OF 65% FOR
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NIBRS GROUP A OFFENSES 2012-2017 •v...`a. . • — Eta
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-- Group A offenses:
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robbery, aggravated
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assault, burglary,
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motor vehicle theft,
larceny/theft
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2012 Per 1000 2013 Per 1000 2014 Per 1000 2015 Per 1000 2016 Per 1000 2017 Per 1000
NIBRS GROUP A OFFENSES
Population: 91,93D Population:92,620 Population:93,080 Population:93,220 Population:93,410 Population:93,900
2012 Reported 2012 Per 1000 2013 Reported 2013 Per 1000 2014 Reported 2014 Per 1000 2015 Reported 2015 Per 1000 2016 Reported 2016 Per 1000 2017 Reported 2017 Per 100{1
11,244 122.32 9,929 107.21 9,291 99.82 10,620 113.93 11,132 119.18 10,361 110.35
HOW ARE WE PAYING FOR STRATEGICy: ; `+
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PRIORITIES ?- MONEYAND RESULTS ;+itt }tkanx:ra* x-~
CITY STRATEGIC PRIORITY
100 Funds-Restricted 200-Debt 300-Capital 400-Enterprise 500-Transers General Fund
YOUTH/CHILD SUPPORTS(Programs) 131,CDBG 331 01,CDBG
ARTERIAL/STREETS(Programs and
Infrastructure) 141, 142, 161, 163 342,343,344, 421 0.001
COMMUNITY TRUST(Police,Essential 125,150, 151, 154, 153,
Services) 152 332,333,303 462,464,471,481 632,612 01,03
422,441,442,472,
473,474,475,476,
123, 124, 144, 162, 170, 322,323,370, 477,478,479,486,
CITY ASSETS(Infrastructure) 171, 172, 173, 174, 272,281,287, 392 488,491,493 01,CDBG
512,513,514,515,
516,551, 552,555,
ORGANIZATIONAL FUNCTIONING 486 560 0.001
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BY DEPARTMENT OR DIVISION 174
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DEPARTMENT
YOUTH/CHILD SUPPORTS
(Programs) PARKS, STREETS
ARTERIAL/STREETS
(Programs and
Infrastructure) STREETS, COMMUNITY DEVELOPMENT
COMMUN ITY TRUST(Police,
Essential Services) POLICE, FIRE, CMO, ADMIN, UTILITIES, LEGAL
CITY ASSETS
(Infrastructure) FINANCE, PW
ORGANIZATIONAL
FUNCTIONING CMO, FINANCE, ADMIN
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CHALLENGE FOR TODAY Ps1..4
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• DEFICIT: $786,276
• SHORT TERM PROPOSED CUTS: $1.2M
• COUNCIL DIRECTION MEANS
• ACCEPT CUTS IN ALL CATEGORIES
• ACCEPT CUTS IN SOME CATEGORIES
• ACCEPT CUTS BEYOND 2019 DEFICIT AND PUT THE REST IN RESERVES
• ACCEPT CUTS BEYOND 2019 DEFICIT AND PORTION IN RESERVES AND A
PORTION ON THE SIDE FOR LATER CONSIDERATION
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P0. i, �xkTHE CHALLENGE FOR LONG TERM � � „
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STRUCTU RAL CHANGES
KEEP THIS SLIDE
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NEW BUSINESS MODELS- POLICY # 11.5'£ .. loot 1
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❑ Further investigate Fire District/Authority
❑ Further investigate Consolidation with Sheriff k
❑ Further investigate Metropolitan Park District
❑ Privatize Information Technology
❑ Privatize Codes
❑ Privatize Yakima Airport
RentonProperty Tax 1%+ Benefit Charge(based on
property factors such as building size,hazards,
RENTON Regional
',�bbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbb;�bbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbblt,. w: „ffi' a a — a ro �gg a: a�,";,
i i i�dddddddddddddddddddddddddddddtlyy''d�dtlyyd'dddddddddddddddddtl'tl'tl'tl'tl'tl'tl'tl'tl'tl'tl'tl'tl'tl'tl'tlp ���� ���, � ���� � � �'�'�'�'�'�'�'�'�'�'�'�'�'�'�'�'�'�'�'�'�'�'�'�'�'�'�'�'�'�'�'�'�'�'�'�'�'�'�'�'�'�'�'�'�'�'�'�'�'�'�'�'�'�'�'�'�'�'�'�'�'�'�'�'�
FEDERAL 1!VSouthKing FD 31.6M NA 157 Property Levy
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FIRE DISTRICTS
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• Article XI, Section 11 of the s in t n t t nstit ti n provides general
police powers for counties, cities and towns. There actually is not a specific
statute that provides that cities must provide fire protection services
• However, as a practical matter, a city must provide some measure of fire
protection. There are five possible ways for a city to provide fire protection:
• Maintaining a fire department run by the city's own personnel
• Contracting with another city or fire protection district for fire protection services
• Annexing directly to a fire protection district with voter approval
• Forming a fire protection district coextensive with the city/town with voter approval
(a new provision enacted in 2017 — see )
• Establishing a regional fire protection authority with voter approval
• For unincorporated areas, fire protection is provided by special districts
and/or through interlocal and mutual aid agreements
17
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MORE ON FIRE DISTRICTS
Fire Protection District Statutes
'Title 52 RCW — Provides for formation of fire protection districts
•RCW 52.02.020 — Authorizes formation of fire protection districts for provision of fire protection services,
fire suppression services, emergency medical services, and for the protection of life and property in areas
outside cities and towns, except where cities and towns have annexed to a fire protection district, or where
such existing district is continuing service pursuant to RCW 35.02.202
•RCW 52.02.160 - .180 — Formation of fire protection district by city; must be approved by simple majority
of voters. City council may serve as ex officio fire commissioners, or they may relinquish governance to a
board of independently elected commissioners (RCW 52.14.140)
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Metropolitan Park District
What Is a Metropolitan Park District?
• A metropolitan park district (MPD) , authorized by Ch . 35.61 RCW, may be
created for the management, control, improvement, maintenance, and
acquisition of parks, parkways, boulevards, and recreational facilities. An
MPD may include territory located in portions or in all of one or more cities
or counties.
• A metropolitan park district may also be formed for a limited purpose that
identifies specific public parks and/or recreational facilities (such as
specific swimming pools, playfields, or public parks). A limited purpose
MPD must establish its levy rate within the initial ballot measure. The rate
becomes the maximum levy rate until a future ballot measure is placed
before the voters for a levy rate lift.
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HOW TO FORM ONE
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Formation of Metropolitan Park District
• There are two ways to initiate the formation of a park district, both of which require approval by a majority of voters
within the proposed district:
• By petition
• By a resolution of the governing body or bodies within which the district is to be located. (RC 35.61.020)
• Local Government Resolution Method
• A city or county may initiate district formation by adopting a resolution submitting a proposition for its formation to voters
within the proposed district boundaries. If the district includes area within the county or other cities and counties, the
legislative body of each city and/or county that includes a portion or all of the area in the district must adopt a resolution
submitting the proposition to the voters.
• Examples
• i Ptr istrict Proposition o. 1 (2003)
• in. unt Ordinance o. 14505 (2003) - Establishing the date for an election on the formation of an MPD within
the city of North Bend and portions of unincorporated King County.
• rt - Resolution o. 900 (2003) - Calling for a special election for the purpose of placing on the ballot a
proposition regarding the formation of a metropolitan park district.
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Citizen Petition Method aittr
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• A metropolitan district may be initiated if a petition proposing its creation is submitted to
the county auditor of each county in which all or a portion of the proposed district would
be located, signed by at least 15% of the registered voters residing in the area to be
included. Where the petition is for creation of a district in more than one county, the
petition must be filed with the county auditor of the county having the greater area of
the proposed district, and a copy filed with each other county auditor of the other
counties covering the proposed district.
• The petition must meet the requirements of RC 5. 1.005 and include the "warning"
language set out in that statute. MRSC recommends that the "warning" language be
placed on each signature page of the petition so signers are clearly notified that they
must be registered voters of the area proposed to be included within the district.
Petition or resolution contents: The petition proposing the creation of a metropolitan park
district, or the resolution submitting the question to the voters, must indicate the choice
and describe the composition of the initial board of commissioners of the district that is
proposed under C 5. 1.05 and must list a name for the district. (
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CITY OF YAKIMA EMPLOYEE BENEFITS i =J : ¢*
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• Health-Shared premium
• Deferred Comp- City covers employees prior to 2012
• Pension- State mandated- can't touch
• Longevity 90% OF EMPLOYEES
ARE COVERED BY
• Incentive: UNIONS
• Bilingual In 2019, we have
• Education four contracts to be
renegotiated for
• Sign language 2020
• Shift differential
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POLICY # 1 - Further Consideration of iM�{ .' + �'
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3 Structural Cuts ( long term ) t }1k - t.. * ,-,41,---,:._,
❑ Decreases in benefits
• Per CBA therefore
• Must negotiate with unions
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• There is no re-opener language in CBA's- thus mutual consent required
x
• SHALL WE??? 4 w
• We are negotiating 4 in 2019: Police, Teamsters Sups, Teamsters Corrections,
AFSCME/Transit
• Take home vehicles
❑ Decreases in Salary
• In CBA (needs negotiation)
• Salaries set by master pay ordinance (civil service) ..,
• Salary ranges recommended by CSC but approved by Councildr '....t...}
• Yakima is below the average WA compensation as defined by AWC's survey
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PROPOSED SAVINGS/CUTS :£'w'r ,,,
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LE V EL OF SERVICE
Closure of Lion's Pool I $ (308,000.00) $ (308,000.00)
QUALITY OF LIFE
4th of July $ (20,000.00)
Battle of the Bands $ (5,000.00)
5 de mayo $ (20,000.00)
$ (45,000.00) LOST POSITIONS: -7
ADMINISTRATIVE GAINED POSITIONS: +3
4300 Transportation $ (103,926.12)
4910 Misc. $ (143,076.00) NET IMPACT: -4
FFreserve $ (8,000.00)
$ (255,002.12)
SALARY SAVINGS
Position Cuts $ (546,940.68)
Potential Transfers from GF to other Funds $ (117,367.00)
$ (664,307.68)
TOTAL $ (1,272,309.80) $ (1,272,309.80)
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Positions Created or Changed
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CREATED CHANGED
• Domestic Violence Victim Advocate (from PSS I)
• Rec Leader • Clean City Coordinator under CMO (from Economic
Development Manager)
• Seasonal Park • Community Development Specialist (from ED Manager)
Maintenance • Legal Assistant III from II
Worker • Sr. Assistant City Attorney I (from Assistant CA II) — 2 of these
• Bilingual • Assistant CA II (from Sr. Assistant CA II)
Community • Supervising Traffic Engineer (from Traffic Signal Analyst)
• Bilingual Community Relations Assistant for Public Safety
Relations Specialist (from PD and FD consolidation)
for Public Safety • PSS II (from PSS 1)- three of these
• Supervising Engineer from Traffic Signal Analyst
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POLICY #3— DIRECTION ON HOW TOf.4 ¢%r
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ELIMINATE DEFICIT
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❑ Do you agree with proposed level of service cuts?
❑ Do you agree with proposed quality of life cuts?
❑ Do you agree with administrative cuts?
❑ Do you agree with salary savings? : v
❑ Do you agree with added positions?
❑ Do you want to allocate a % of cuts to the reserves?
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COUNCILPRIORITIES— POLICY #4 i
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❑ Leave GENERAL FUND COUNCIL PRIORITIES in budget?
• Jurassic Parliament $15,000
• National League of Cities $17,000
• YCDA $50,000 (from $33,000)
What about...
• Traffic calming- REET
• MLK Pool- REET
• City Clean Up Strategy-Fee
• Alley Paver Project- Enterprise Fund
• Port Authority- N/A
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NIP
*****1
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Lout Government Sumens
List of etropolitan *ark 111 istricts
This page lists existing and proposed metropolitan park districts(MPDs) in Washington State,including their
governance and the purpose for which they were created.
Current Metropolitan Park Districts
As of 2017,MRSC is aware of 19 metropolitan park districts within the state.In recent years,voters have only
approved about one-third of proposed MPDs(see our Local Ballot Measure Database for results since November
2011).
This table lists the existing MPDs in alphabetical order,with links to the MPD website(if available).
MPD Election Boundaries Governance Purpose
Date
Bainbridge Island Sept. Bainbridge Island Elected board Maintain and operate park and
Metropolitan Park and 2004 recreation facilities,replacing an earlier
Recreation District park and recreation district with less
stable funding.
bLiekaniItCQrnmijnity Feb. Part of Bellingham Elected board Pay off an interfund loan that
Forest and Recreation 2013 Bellingham used to purchase a tract of
District forest used as an informal park.Board
intends to dissolve district upon
repayment.
Colfax Metropolitan Park Nov. Colfax City council(ex officio) Operate and'maintain existing
District 2016 swimming pool and parks.
Des Moines Pool Metropolitan Park Nov. Des Moines Elected board Maintain and operate existing Mt.
District 2009 Rainier Pool(with additional funding
from Normandy Park MPD and
Highline School District).
Eastmont Metro Parks And May East Wenatchee and nearby Elected board Maintain existing park services and
Recreation 2004 unincorporated areas of facilities,replacing the Eastmont Park
Douglas County and Recreation Service Area which
lacked adequate funding
Fall City Metropolitan Park March Fall City area Elected board Maintain,improve,and acquire park
District 2009 (unincorporated King and recreation facilities.
County)
Greater Clark Parks District Feb. Vancouver unincorporated Elected board Maintain,operate,and construct
2005 growth area(Clark County) neighborhood parks,sports fields,and
trails.
,
Key Peninsula Metropolitan Feb Key Peninsula Elected board Maintain and operate park and
Park District 2004 (unincorporated Pierce recreation facilities,replacing the Key
County) Peninsula Park and Recreation District.
30
MPD Election Boundaries Governance Purpose
Date
Metro Parks Tacoma 1907 Tacoma and nearby Elected board First MPD in state.Operates extensive
unincorporated Pierce parks,community centers,and
County,including Browns zoo/nature facilities.
Point&Dash Point
Normandy Park Metropolitan Park Nov. Normandy Park City council(ex off icio) Help fund existing Mt.Rainier Pool
District 2009 (along with Des Moines Pool MPD and
Highline School District).
Olvmpia Metropolitan Park Nov. Olympia City council(ex off icio) Improve and expand city park system
District 2015
P� ,'nsula Metropolitan Park May Unincorporated Pierce Elected board Maintain and improve park and
District 2004 County near Gig Harbor recreation facilities.Replaced earlier
p ark and recreation district following
series of ballot measures that fell
narrowly short of the required 60%
approval.
Pullman Metropolitan Park Sept. Pullman City council(ex off icio) Maintenance and operation of park
District 2002 facilities due to general fund shortfalls
5eattle Park District Aug. Seattle City council(ex off icio) Maintenance and improvement of
2014 existing park facilities to address$267
million backlog
� Shelton Metropolitan Park April Shelton City council(ex off cm Fund park and recreation facilities
District 2010 owned by the city.
5i View Metropolitan Park Feb, North Bend and nearby Elected board Operate the Si View Park Community
District 2003 unincorporated King County Center and Pool,which had been
closed due to county budget cuts,as
well as other park facilities.
Tukwila Pool Metropolitan April Tukwila Elected board Operate the Tukwila Pool,preventing
Park District 2011 potential closure following recession
and general fund shortfalls.
illage Green Met Aug, Kingston area Elected board Pay a portion of the capital costs for
rk District 2008 (unincorporated Kitsap the new Village Green community
County) center
William Shore,Memoriai May Port Angeles School District 2 county commissioners, Operate the William Shore Memorial
POOL Park District 2009 No.121(City of Port Angeles 2 city councilmembers, Pool,preventing its closure.
and part of unincorporated I resident elected by the
Clattam County) board
Failed Metro���)Ui �m� ����� Districts
�
Metropolitan _'— _ '-_ -_-
|nrecentyears,votenshavedefeatcdabouttwo-thinbofthe proposed metropolitan park district measures,often 6v
�
overwhelming margins.TheMRSC which goes back to the 3D11 general election,
includes the following examples:
^ Bonney Lake-Would have assumed ownership of some or all of the city's parks and recreational facilities.
Received 2096in3013 general election.
Ferndale-Would have supplemented existing funding for city parks.Received 41%in 2015 general election.
` Kirkland-Would have paid for a proposed aquatic/community center,as well as park improvements.Received
37Y6in2O1S general.election.
31
^ Mason County-Wouldhave funded park and trail improvements in the unincorporated county.Received 36%in
2016genera election.
• Okanogan County-Submitted by petition to form a new recreation district in Methow Valley. Received 22%in
April IO14 special election.
^ Sequim-Would have funded the existing Sequirn Aquatic and Recreation Center(SARC). Received 42%in 2015
primary election and SARC was forced toclose.
^ Skamania County-Would have funded the existing Stevenson Pool.Received 40%in 2014 general election.
` Snohomish-Would have supplemented existing funding for park maintenance and operations.Received 31%in
JO1S primary election.
^ University Place-Submitted by petition to stave off elimination of city recreation programs.Received 35%in
April 2O16 special election.
^ Vancouver-Would have supplemented existing funding for city parks.Received 34%of vote in 2012 general
election.
Last Modified:May 24.2018
m2ommoscmWashington.All rights reserved.Privacy, B Terms.
32
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CITY OF Yakima
2019 BUDGET SUMMARY FOR THE RESIDENTS OF
THE CITY OF YAKIMA
TABLE OF CONTENTS
PAGE
Introduction and Executive Summary 1
Financial Health/ Fund Balance 3
General Fund Revenues 5
General Fund Expenditures 7
General Fund Challenges/ Recommendations 9
Appendix
Preliminary Budget by Functional Grouping 11
35
ri .
36
INTRODUCTION AND EXECUTIVE SUMMARY
On September 20,2018 the City Manager's Office presented the 5-Year Financial Plan to help the City of Yakima
understand the revenue and expenditure forecast and its impact on the City's financial reserves. Aprimary
purpose of the document was to provide context for present and future budget decisions and to understand the
long-term financial impacts.
The main points of this document were used as foundations for the 2019 Budget.Specifically,the 2019 Budget is
sensitive to:
1. Reserves which are below the City's policy level requirement of 16.7% (2 months of expenditures).
2. Structural problems that have resulted in expenses exceeding revenues.Yet it is important to point out the
levels of services(expenses)are negatively impacted by historical funding reductions. The City is
currently challenged to provide service levels expected by the community.
The following framework was adopted by council on September 11,2018 and has served as the blueprint in the
creation of the 2019 Budget:
I. Expenses in 2019 should mirror 2018 expenses plus obligations(contracts)plus realistic budgets(needed to
deliver minimum level of services).
II. Expenses in 2019 may not exceed Revenues in 2019.
III. Maintaining level of services is imperative.
The Preliminary 2019 Budget shows:
2019 Projected Surplus
Revenues Expenditures (Deficit)
General Fund $ 66,837,264 $ 67,537,381 $ (700,117)
Parks and Streets 10,751,481 10,948,029 (196,548)
Restricted Funds(100's) 24,410,502 25,634,737 (1,224,235)
Debt(200's) 4,915,159 4,915,609 (450)
Capital(300's) 28,414,248 26,259,826 2,154,422
Enterprise Construction(400's) 81,762,945 88,110,576 (6,347,631)
Transfers(500's) 26,485,740 27,546,626 (1,060,886)
Agency(600's) 655,000 655,000 —
Trust(700's) 24,000 12,000 12,000
Total 2019 Projected Budget $ 244,256,339 $ 251,619,784 $ (7,363,445)
2019 City of Yakima Preliminary Budget-1
37
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2-2019 City of Yakima Preliminary Budget
38
FINANCIAL HEALTH/FUND BALANCE
Current and Projected Reserves
Over the next five years,the City's revenues and expenditures are forecast to be structurally out of balance. Given
the pressure created by the Charter amendments of 2013 and 2014,and the inflationary impact of collective
bargaining agreements with the City's ten(nine beginning 2019)bargaining units,absent strategic redirection,the
City's revenues are not expected to keep up with the maintenance cost of current service levels,resulting in a fiscal
imbalance.The table below depicts the Preliminary Budget projected ending fund balance for 2019 with current
budget numbers.
CURRENT RESERVE BALANCE-GENERALFUND
2018
2016 2017 Year End 2019
General Fund Actual Actual Estimate Projected Change
Beginning Fund Balance $ 6,887,223 $ 8,266,909 $ 8,750,726 $ 9,498,244
Revenues 64,791,138 66,496,492 67,580,600 66,837,264 (1.1)%
Expenditures 63,411,452 66,012,675 66,833,082 67,537,381 1.1 %
Ending Fund Balance $ 8,266,909 $ 8,750,726 $ 9,498,244 $ 8,798,127 (7.4)%
Reserve as a%of Expenditures 13.0% 13.3% 13.8% 12.5%
The table below depicts the projected ending fund balance for years 2018 through 2023 reflecting the current
budget numbers,and using the percentages from the 5-Year Plan.
GENERAL FUND RESERVE FORECAST VS POLICY LEVEL REQUIREMENTS
2018
2017 Year End 2019 2020 2021 2022 2023
General Fund Actual Estimate Projected Forecast Forecast Forecast Forecast
General Fund Reserve Forecast 8,266,909 8,750,726 9,498,244 8,798,127 8,822,018 8,777,936 8,803,159
Policy Level Requirements 4 16.7% 11,024,117 11,161,125 11,278,743 11,459,202 11,780,060 12,098,122 12,436,869
Net Increase(Deficit) ($2,757,208) ($2,410,399) ($1,780,499) (2,661,075) (2,958,042) (3,320,186) (3,633,710)
The following chart shows that the difference between the annual forecast reserve and the policy level
requirement increases over time because revenues are not expected to grow at the rate needed to fund
operating expenditures as well as the required reserves.
GENERAL FUND OPERATING INCOME/LOSS ANALYSIS
2018
2017 Year End 2019 2020 2021 2022 2023
General Fund Actual Estimate Projected Forecast Forecast Forecast Forecast
Operating Revenues 66,496,492 67,580,600 66,837,264 68,641,870 70,495,200 72,469,066 74,498,200
Operating Expenditures 66,012,675 66,833,082 67,537,381 68,617,979 70,539,282 72,443,843 74,472,271
Net Operating(Loss) $483,817 $747,518 ($700,117) 23,891 (44,082) 25,223 25,929
2019 City of Yakima Preliminary Budget-3
39
Key Reminders
• The 2019 Preliminary Budget funds all vacant positions.
• The 2019 Preliminary Budget fund 001 (excluding 003 and 612) is not balanced by$786K.
• The 2019 Preliminary Budget funds realistic operational expenses to provide a minimum level of
service.
• The 2019 Preliminary Budget funds all obligations and contracts.
4-2019 City of Yakima Preliminary Budget
40
GENERAL FUND REVENUES
Revenues are supported by four main revenue streams each represent roughly a quarter of the total General Fund
revenues: Property Taxes,Retail Sales &Use Taxes,Utility Taxes,and Other Revenue (business licenses, gambling
taxes,and fines and forfeitures).
2019 GENERAL FUND REVENUE BUDGET BY SOURCE
Utility Tax Business Tax
$10,433,936
S7,984,113
• 15,6«.,
•
• Other Tax,Lic,Permits
S2,593,324
. Charges for Services
$6,933,957
Retail Sales&Use Tax
21,7 8,510 Interg&ven rnent I
$3,873,659
Fines,Forfeitures&Misc
S2,6112,OOO
Property Ti x
$[O,655,766
I5(.r%
2019 City of Yakima Preliminary Budget-5
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6-2019 City of Yakima Preliminary Budget
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GENERAL FUND EXPENDITURES
2019 GENERAL.FUND EXPENDITURE BUDGET
GENERALIZED CATEGORIES
Personnel Benefits
513,167,379
19,5%
Salaries&Wages
$.37,756,581
55.9%
••••••-. Supplies,Equip,Misr
(4, • $1.557,469
• •
/3% Capital Outlays
Iau,000
u •
.. services&Charges
• $9,903,398
• • 14,7%
•
Intergov't Services
Transfers $2,308,965
51,779,540
1,0%
Debt Service
$998,849
2019 City of Yakima Preliminary Budget- 7
43
2019 GENERAL FUND CRIMINAL JUSTICE EXPENDITURES BY OPERATIONS
Municipal
Court
Legal $1,713,565
S1,813,403 2.5%
Code 2.7%
Fire Adm inistration
S14,592,725 S1„963,051
21.6% 2.9% Indigent Defense
A A A A $1,050,001
All Other Operations
$15,564,733
Police
S30,839,905
45.7'11,
The data utilized in the following comparison was compiled from the State Auditor's Local Government
Financial Reporting System(LGFRS) for the year 2017, the most recent year available. This chart
includes the categories of Public Safety,Judicial Activities and Legal, and includes comparisons of the
top 10 Cities in Washington State with a population between 75,000 and 130,000.
While the State Auditor pulls these numbers together slightly differently, the percentages shown are
comparable to the above chart.
TOTAL EXPENDITURES SPENT ON PUBLIC SAFETY,LEGAL&MUNICIPAL COURT
77.1 .
BO
7S 71,8%
70 —
65
5740,
60
514%
„..
ty of City of City of C:ity of City of C:ity of C:ity at C:ity of City of C:ity of
Yakima Federal Way Everett Kennewick Srokane Valley Kirkland Kent Auburn Bellingham Renton
8-2019 City of Yakima Preliminary Budget
44
GENERAL FUND CHALLENGES/RECOMMENDATIONS
The Preliminary 2019 Budget shows a General Fund(001)that is not balanced.
1. Staff will present options including,level of service,quality of life, operational and salary cuts.
2. Council may accept proposed cuts.
3. Council may accept$786K in cuts to balance the General Fund only.
4. Council may accept$786K in cuts to balance the General Fund AND place other funds in reserves.
5. Council may accept$786K in cuts to balance the General Fund AND undo some of the cuts AND keep a
portion for reserves.
Once the 2019 Preliminary Budget is balanced through short term cuts,the City has to identify long term new
revenues that will help address the structural deficit.It is important to understand that the 2019 cuts are bandaid
solutions that only accomplish one goal:a balanced budget.No different than the decision to use reserves to
balance the budget,these cuts are not long term solutions. A new revenue strategy must begin in 2019 to ensure
the sustainability of Yakima's municipal government.
There are significant challenges before the City;the regional economy and demographics provide limited growth.
Expenses are conservative and levels of services are already impacted. In summary:
• The City needs to develop an approach to meet policy reserve requirements for the General Fund.
• Zero to little growth in maintenance and operation annual allocations can be done in the short term,but it
is not a long-term solution unless levels of services are changed.There are some cases in which the level of
service may not be able to be reduced. An example would be contracts for maintenance of computer
software.
• There is a long term structural deficit in the General Fund.The effect of which is estimated revenues do
not cover estimated expenditures.
• The City must adopt a Cost Allocation Plan to appropriately reimburse the General Fund.
• The City must consider long term salary and or benefit reductions including examination of pension plans
and contracts.
• The City must consider new revenue options and other business models.
9-2019 City of Yakima Preliminary Budget
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2019 City Of
Yakima Preliminary Budget-10
46
Appendix 1
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PRELIMINARY BUDGET
BY FUNCTIONAL GROUPING
219 City o Yakima Preliminary Budget-11
47
2019 CURRENT BUDGET BY CITY FUNCTIONAL GROUPING
2017 2018 2018 2019 2019
Actual Amended Year-End Proposed vs 2018
Expenditures Expenditures Budget Estimate Expenditures Est
General Government
City Management $ 395,581 $ 434,550 $ 434,548 $ 451,971 4.0 %
Indigent Defense 1,021,792 1,050,000 1,050,000 1,050,000 - %
City Council 253,907 262,650 266,542 295,936 11.0 %
City Clerk/Records 636,541 675,267 725,267 717,857 (1.0)%
Human Resources 613,633 763,825 763,565 779,363 2.1 %
Legal 1,616,593 1,686,272 1,686,879 1,813,403 7.5 %
Municipal Court 1,439,477 1,585,265 1,578,629 1,713,565 8.5 %
Planning 577,096 629,748 632,747 685,791 8.4 %
Code Administration 1,783,601 1,926,299 1,926,297 1,963,051 1.9 %
City Hall Facility 550,676 533,319 533,316 602,352 12.9 %
Economic Development 595,405 514,138 435,600 427,846 (1.8)%
Police 28,657,996 29,388,534 29,358,529 30,839,905 5.0 %
Fire 13,436,007 14,080,858 14,080,858 14,592,725 3.6 %
Information Technology 3,521,662 3,523,653 3,523,653 3,744,961 6.3 %
Intergovernmental 156,361 160,372 160,372 160,372 - %
Transfers 4,187,350 3,952,540 2,413,060 2,013,060 (16.6)%
Financial Services 1,553,313 1,651,963 1,651,963 1,793,616 8.6 %
State Examiner 127,883 130,000 130,000 130,000 - %
Police Pension 815,405 927,497 929,497 929,497 - %
Firemen's Relief&Pension 1,126,446 1,229,483 1,229,483 1,216,963 (1.0)%
Utility Services 1,570,958 1,829,146 1,816,173 - (100.0)%
Parking 156,750 178,783 176,582 186,854 5.8 %
Purchasing 557,489 624,773 624,771 648,583 3.8 %
Engineering 660,751 730,903 704,751 779,711 10.6 %
Total General Fund 66,012,673 68,469,838 66,833,082 67,537,382 1.1 %
Parks&Recreation 5,473,986 5,626,305 4,944,555 5,048,475 2.1 %
Street&Traffic Operations 7,295,657 5,441,133 5,794,821 5,899,554 1.8 %
Total General Government Funds $ 78,782,316 $ 79,537,276 $ 77,572,458 $ 78,485,411 1.2 %
12-2019 City of Yakima Preliminary Budget
48
2019 CURRENT BUDGET BY CITY FUNCTIONAL GROUPING
2019 Estimated Increase
2019 Beginning Ending (Decrease)
Projected Fund Fund In Fund
Revenues Revenue Balance Balance Balance
General Fund $ 66,837,264 $ 9,498,244 $ 8,798,127 $ (700,117)
Parks&Recreation 5,088,140 370,406 410,071 39,665
Street&Traffic Operations 5,663,341 858,791 622,578 (236,213)
Total General Government Funds $ 77,588,745 $ 10,727,441 $ 9,830,776 $ (896,665)
2019 City of Yakima Preliminary Budget-13
49
2019 CURRENT BUDGET BY CITY FUNCTIONAL GROUPING
2017 2018 2018 2019 2019
Actual Amended Year-End Proposed vs 2018
Expenditures Expenditures Budget Estimate Expenditures Est
Other Governmental Operating Funds
Economic Development $ 118,550 $ 116,400 $ 116,400 $ 116,400 - %
Community Development 1,529,075 3,121,636 3,121,623 1,509,331 (51.6)%
Community Relations 556,399 640,098 630,135 659,140 4.6 %
Cemetery 279,792 268,602 269,571 297,153 10.2 %
Emergency Services 1,425,736 1,411,607 1,385,134 1,357,829 (2.0)%
Public Safety Communications 3,718,397 4,289,986 4,138,125 4,427,779 7.0 %
Police Grants 326,400 406,648 404,777 417,918 3.2 %
Downtown Improvement District 94,811 188,127 188,127 193,924 3.1 %
Trolley(Yakima Interurban Lines) 22,282 31,699 31,699 31,699 - %
Front St Business Impr Area 3,500 3,500 3,500 3,500 - %
Tourist Promotion(ConvCtr) 1,659,678 1,731,163 1,677,413 1,768,274 5.4 %
Capitol Theatre 443,278 436,587 441,587 442,356 0.2 %
PFD Revenue-Convention Center 730,051 733,213 733,213 958,395 30.7 %
Tourist Promotion Area 662,949 707,200 675,000 690,000 2.2 %
PFD Revenue-Capitol Theatre 661,400 661,400 661,400 683,400 3.3 %
Total Other Governmental Operating Funds $ 12,232,298 $ 14,747,866 $ 14,477,704 $ 13,557,098 (6.4)%
Government Capital Funds
Arterial Street $ 1,247,080 $ 4,902,457 $ 1,342,420 $ 12,077,639 799.7 %
C.B.D.Capital Improvement 42,278 10,838,560 2,836,060 10,838,560 282.2 %
Capitol Theatre Construction 104,743 60,000 15,000 60,000 300.0 %
Yakima Rev Development Area 1,765,377 11,500,142 1,526,645 11,500,142 653.3 %
Parks&Recreation Capital 1,921,335 8,224,810 8,291,128 - (100.0)%
Fire Capital 1,189,526 80,000 80,000 80,000 - %
Law&Justice Capital 823,093 695,000 633,875 570,000 (10.1)%
Public Works Trust Construction 510,965 476,495 476,496 838,584 76.0 %
REET 2 Capital Construction 700,453 777,646 777,646 775,320 (0.3)%
Street Capital Fund 95,775 550,000 550,000 550,000 - %
Convention Center Capital Impr 241,209 549,560 466,560 1,013,600 117.2 %
Cum.Reserve for Capital Impr 332,565 10,000 150,813 33,620 (77.7)%
Total Government Capital Funds $ 8,974,399 $ 38,664,670 $ 17,146,643 $ 38,337,465 123.6
14-2019 City of Yakima Preliminary Budget
50
2018 CURRENT BUDGET BY CITY FUNCTIONAL GROUPING
2019 Estimated Increase
2019 Beginning Ending (Decrease)
Projected Fund Fund In Fund
Revenues Revenue Balance Balance Balance
Other Governmental Operating Funds
Economic Development $ 119,356 $ 46,681 $ 49,638 $ 2,957
Community Development 1,681,434 931,793 1,103,896 172,103
Community Relations 659,600 736,865 737,324 459
Cemetery 298,500 84,673 86,020 1,347
Emergency Services 1,412,809 110,463 165,443 54,980
Public Safety Communications 4,209,740 270,794 52,755 (218,039)
Police Grants 430,000 1,110,066 1,122,148 12,082
Downtown Improvement District 200,340 111,689 118,105 6,416
Trolley(Yakima Interurban Lines) 31,704 20,957 20,961 4
Front St Business Impr Area 3,735 390 625 235
Tourist Promotion(Cony Ctr) 1,773,250 379,303 384,279 4,976
Capitol Theatre 452,720 17,151 27,515 10,364
PFD Revenue-Convention Center 946,000 1,008,162 995,767 (12,395)
Tourist Promotion Area 690,350 79,692 80,042 350
PFD Revenue-Capitol Theatre 711,250 244,617 272,467 27,850
Total Other Governmental Operating Funds $ 13,620,788 $ 5,153,296 $ 5,216,985 $ 63,689
Government Capital Funds
Arterial Street $ 10,789,713 $ 2,411,724 $ 1,123,799 $ (1,287,925)
C.B.D.Capital Improvement 10,821,250 8,572,362 8,555,052 (17,310)
Capitol Theatre Construction 60,000 147,791 147,791 -
Yakima Rev Development Area 13,000,000 1,167,480 2,667,338 1,499,858
Parks&Recreation Capital - 266,898 266,898 -
Fire Capital 163,000 500,984 583,984 83,000
Law&Justice Capital 586,450 289,807 306,257 16,450
Public Works Trust Construction 1,231,948 2,644,263 3,037,627 393,364
REET 2 Capital Construction 1,147,500 811,508 1,183,687 372,179
Street Capital Fund 600,000 3,827,884 3,877,884 50,000
Convention Center Capital Impr 759,100 922,054 667,554 (254,500)
Cum.Reserve for Capital Impr 45,000 467,608 478,988 11,380
Total Government Capital Funds $ 39,203,961 $ 22,030,363 $ 22,896,859 $ 866,496
2019 City of Yakima Preliminary Budget-15
51
2019 CURRENT BUDGET BY CITY FUNCTIONAL GROUPING
2017 2018 2018 2019 2019
Actual Amended Year-End Proposed vs 2018
Expenditures Expenditures Budget Estimate Expenditures Est
Enterprise Operating Funds
Airport Operating Fund $ 1,236,388 $ 1,278,178 $ 1,323,523 $ 1,390,426 5.1 %
Stormwater Operating 3,226,069 3,251,193 3,541,975 3,737,204 5.5 %
Transit 8,470,875 9,682,563 9,055,719 9,501,399 4.9 %
Refuse 6,674,363 7,193,658 7,193,658 7,607,243 5.7 %
Wastewater Operating 21,640,656 23,896,493 23,578,405 25,393,001 7.7 %
Water Operating 9,865,200 10,450,868 10,480,239 10,332,928 (1.4)%
Irrigation Operating 1,786,666 1,802,753 1,800,962 1,876,517 4.2 %
Utility Services 1,871,700 n/a
Total Enterprise Operating Funds $ 52,900,217 $ 57,555,706 $ 56,974,481 $ 61,710,418 8.3
Enterprise Capital Funds
Airport FAA $ 1,190,622 $ 3,884,193 $ 2,624,193 $ 4,810,000 83.3 %
Stormwater Capital 941,617 2,450,000 1,527,547 3,085,000 102.0 %
Transit Capital Reserve 2,143,485 500,000 500,000 1,270,000 154.0 %
Wastewater Facilities Capital Rsv 193,162 1,250,000 415,000 1,250,000 201.2 %
Wastewater Construction 3,067,568 5,560,000 5,034,563 3,560,000 (29.3)%
Water Capital 577,489 1,696,500 523,450 2,135,000 307.9 %
Wastewater Capital 9,212 2,950,000 950,000 3,025,000 218.4 %
Irrigation Capital 352,416 8,367,542 442,542 5,367,542 n/a
Total Enterprise Capital Funds $ 8,475,571 $ 26,658,235 $ 12,017,295 $ 24,502,542 103.9
Internal Service Funds
Equipment Rental $ 4,745,892 $ 4,746,938 $ 4,705,746 $ 5,618,157 19.4 %
Environmental Fund 542,431 422,950 422,950 222,950 (47.3)%
Public Works Administration 1,233,464 1,254,593 1,211,092 1,258,251 3.9 %
Total Internal Service Funds $ 6,521,787 $ 6,424,481 $ 6,339,788 $ 7,099,358 12.0
Employee Benefit Reserves
Unemployment Compensation $ 553,640 $ 182,706 $ 182,406 $ 188,629 3.4 %
Employees Health Benefit 11,875,549 12,961,129 12,556,443 13,649,443 8.7 %
Workers'Compensation 2,154,260 1,821,376 2,177,370 2,223,444 2.1 %
Wellness/EAP Fund 62,432 76,900 76,909 66,900 (13.0)%
Total Employee Benefit Reserves $ 14,645,881 $ 15,042,111 $ 14,993,128 $ 16,128,416 7.6
Risk Management Reserve
Risk Management $ 3,516,409 $ 4,021,304 $ 3,782,174 $ 4,318,852 14.2 %
Total Risk Management Reserve $ 3,516,409 $ 4,021,304 $ 3,782,174 $ 4,318,852 14.2
16-2019 City of Yakima Preliminary Budget
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2019 CURRENT BUDGET BY CITY FUNCTIONAL GROUPING
2019 Estimated Increase
2019 Beginning Ending (Decrease)
Projected Fund Fund In Fund
Revenues Revenue Balance Balance Balance
Enterprise Operating Funds
Airport Operating Fund $ 1,390,502 $ 75,516 $ 75,592 $ 76
Stormwater Operating 3,950,044 1,020,279 1,233,120 212,841
Transit 9,562,225 3,147,583 3,208,408 60,825
Refuse 7,477,946 1,014,814 885,518 (129,296)
Wastewater Operating 23,578,045 5,075,635 3,260,679 (1,814,956)
Water Operating 10,343,000 1,381,204 1,391,276 10,072
Irrigation Operating 1,859,100 1,003,419 986,001 (17,418)
Utility Services 1,871,593 - (107) (107)
Total Enterprise Operating Funds $ 60,032,455 $ 12,718,450 $ 11,040,487 $ (1,677,963)
Enterprise Capital Funds
Airport FAA $ 4,987,150 $ 569,849 $ 746,999 $ 177,150
Stormwater Capital 1,200,000 4,267,773 2,382,773 (1,885,000)
Transit Capital Reserve 1,462,000 6,080,664 6,272,664 192,000
Wastewater Facilities Capital Rsv 1,000,000 3,352,165 3,102,165 (250,000)
Wastewater Construction 2,900,000 4,862,143 4,202,143 (660,000)
Water Capital 565,000 5,392,242 3,822,242 (1,570,000)
Wastewater Capital 501,500 3,487,303 963,803 (2,523,500)
Irrigation Capital 7,217,060 4,089,842 5,939,360 1,849,518
Total Enterprise Capital Funds $ 19,832,710 $ 32,101,981 $ 27,432,149 $ (4,669,832)
Internal Service Funds
Equipment Rental $ 4,746,378 $ 2,412,327 $ 1,540,548 $ (871,779)
Environmental Fund 145,000 308,106 230,156 (77,950)
Public Works Administration 1,240,201 416,535 398,485 (18,050)
Total Internal Service Funds $ 6,131,579 $ 3,136,968 $ 2,169,189 $ (967,779)
Employee Benefit Reserves
Unemployment Compensation $ 221,343 $ 162,044 $ 194,758 $ 32,714
Employees Health Benefit 14,189,179 1,499,389 2,039,124 539,735
Workers'Compensation 1,497,704 (586,505) (1,312,245) (725,740)
Wellness/EAP Fund 100,000 21,807 54,907 33,100
Total Employee Benefit Reserves $ 16,008,226 $ 1,096,735 $ 976,544 $ (120,191)
Risk Management Reserve
Risk Management $ 4,345,936 $ 1,624,217 $ 1,651,301 $ 27,084
Total Risk Management Reserve $ 4,345,936 $ 1,624,217 $ 1,651,301 $ 27,084
2019 City of Yakima Preliminary Budget-17
53
2019 CURRENT BUDGET BY CITY FUNCTIONAL GROUPING
2017 2018 2018 2019 2019
Actual Amended Year-End Proposed vs 2018
Expenditures Expenditures Budget Estimate Expenditures Est
Debt Service
Public Facility District
PFD Debt Service $ 1,029,213 $ 1,029,850 $ 1,029,850 $ 1,030,925 0.1 %
General Obligation
Misc LTGO Bonds 3,320,582 3,095,992 2,938,299 3,535,614 20.3 %
1996 LTGO Bonds 425,465 425,265 425,265 349,070 (17.9)%
Utility Bonds
2008 Water Bond $ 227,917 $ 231,000 $ 231,000 $ — (100.0)%
2008 Wastewater Bond 386,510 413,813 413,813 415,063 0.3 %
2004 Irrigation Bond 263,094 321,341 321,341 320,154 (0.4)%
2003 Wastewater Bond 1,118,583 1,165,300 1,165,300 1,162,400 (0.2)%
Total Debt Service $ 6,771,364 $ 6,682,561 $ 6,524,868 $ 6,813,226 4.4
Trust and Agency Funds
YakCorps Agency Fund — 655,000 655,000 655,000 — %
Cemetery Trust 12,000 12,000 12,000 12,000 — %
Total Trust and Agency Funds $ 12,000 $ 667,000 $ 667,000 $ 667,000 — %
Total City Budget $ 192,832,242 $ 250,001,212 $ 210,495,538 $ 251,619,784 19.5
18-2019 City of Yakima Preliminary Budget
54
2019 CURRENT BUDGET BY CITY FUNCTIONAL GROUPING
2019 Estimated Increase
2019 Beginning Ending (Decrease)
Projected Fund Fund In Fund
Revenues Revenue Balance Balance Balance
Debt Service
Public Facility District
PFD Debt Service $ 1,025,795 $ 165,513 $ 160,383 $ 5,130
General Obligation
Misc LTGO Bonds 3,535,614 8,735 8,734 (1)
1996 LTGO Bonds 353,750 76,157 80,837 4,680
Utility Bonds
2008 Water Bond — 365,047 365,047 —
2008 Wastewater Bond 414,238 (22,710) (23,535) (825)
2004 Irrigation Bond 317,542 (26,100) (28,712) (2,612)
2003 Wastewater Bond 1,166,000 1,579,632 1,583,232 3,600
Total Debt Service $ 6,812,939 $ 2,146,274 $ 2,145,986 $ 288
Trust and Agency Funds
YakCorps Agency Fund $ 655,000 $ (530,293) $ (530,293) $ —
Cemetery Trust 24,000 683,296 695,296 12,000
Total Trust and Agency Funds $ 679,000 $ 153,003 $ 165,003 $ (12,000)
Total City Budget $ 244,256,338 $ 90,888,729 $ 83,525,283 $ 7,363,446
2019 City of Yakima Preliminary Budget-19
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2019 City of Yakima Preliminary Budget-1
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APPENDIX 1 - GENERAL FUND ONLY
FINANCIAL HEALTH/GENERAL FUND (001) BALANCE
Current and Projected Reserves
Over the next five years,the City's revenues and expenditures are forecast to be structurally out of
balance. Given the pressure created by the Charter amendments of 2013 and 2014,and the inflationary
impact of collective bargaining agreements with the City's ten(nine beginning 2019)bargaining units,
absent strategic redirection,the City's revenues are not expected to keep up with the maintenance cost of
current service levels,resulting in a fiscal imbalance.The table below depicts the Preliminary Budget
projected ending fund balance for 2019 with current budget numbers.
CURRENT RESERVE BALANCE
2018
2016 2017 Year End 2019
General Fund-001 Only Actual Actual Estimate Projected Change
Beginning Fund Balance $ 5,539,189 $ 6,570,959 $ 6,664,551 $ 7,471,176
Revenues 61,374,514 63,018,704 64,161,628 63,226,694 (1.5)%
Expenditures 60,342,744 62,925,112 63,355,003 64,012,970 1.0
Ending Fund Balance $ 6,570,959 $ 6,664,551 $ 7,471,176 $ 6,684,900 (10.5)%
Reserve as a%of Expenditures 10.9% 10.6% 13.8% 12.5%
The table below depicts the projected ending fund balance for years 2018 through 2023 reflecting the
current budget numbers,and using the percentages from the 5-Year Plan.
GENERAL FUND RESERVE FORECAST VS POLICY LEVEL REQUIREMENTS
2018
2017 Year End 2019 2020 2021 2022 2023
General Fund-001 Only Actual Estimate Projected Forecast Forecast Forecast Forecast
General Fund Reserve Forecast $ 6,570,959 $ 6,664,551 $ 7,471,176 $ 6,684,900 $ 6,581,537 $ 6,410,346 $ 6,301,220
Policy Level Requirements 416.7% 10,508,494 10,580,286 10,690,166 10,861,209 11,165,323 11,466,786 11,787,856
Net Increase(Deficit) $(3,937,535) $(3,915,735) $(3,218,990) $(4,176,309) $(4,583,786) $(5,056,440) $(5,486,636)
The following chart shows that the difference between the annual forecast reserve and the policy level
requirement increases over time because revenues are not expected to grow at the rate needed to fund
operating expenditures as well as the required reserves.
2-2019 City of Yakima Preliminary Budget
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GENERAL FUND OPERATING INCOME/LOSS ANALYSIS
2018
2017 Year End 2019 2020 2021 2022 2023
General Fund-001 Only Actual Estimate Projected Forecast Forecast Forecast Forecast
Operating Revenues $63,018,704 $64,161,628 $63,226,694 $64,933,815 $66,687,028 $68,554,265 $70,473,784
Operating Expenditures 62,925,112 63,355,003 64,012,970 65,037,178 66,858,219 68,663,391 70,585,966
Net Operating(Loss) $ 93,592 $ 806,625 $ (786,276) $ (103,363) $ (171,191) $ (109,126) $ (112,182)
2019 City of Yakima Preliminary Budget-3
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Key Reminders
• The 2019 Preliminary Budget funds all vacant positions.
• The 2019 Preliminary Budget fund 001 (excluding 003 and 612) is not balanced by$786K.
• The 2019 Preliminary Budget funds realistic operational expenses to provide a minimum level of
service.
• The 2019 Preliminary Budget funds all obligations and contracts.
4-2019 City of Yakima Preliminary Budget
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GENERAL FUND (001) REVENUES
Revenues are supported by four main revenue streams each represent roughly a quarter of the total General
Fund revenues: Property Taxes, Retail Sales & Use Taxes, Utility Taxes, and Other Revenue (business
licenses, gambling taxes,and fines and forfeitures).
2019 GENERAL FUND (001) REVENUE BUDGET BY SOURCE
Business Tax
Utility Tax
S111,433,936
$7,04,113 16.5%
12.6 f
• Other Tax,Lic,Permits
•• $2,593,324
•
4.1%
• Charges for Services
$6,935,957
1 1,i3%
Retail Saks&Use Tax intergovernmental
S19,397,450 $3,775,659
311.7'>it 6.0%
Fines,Forfeitures&Vlisc
$2,602,000
a.l K.a
Property Tax
S9,504,255
2019 City of Yakima Preliminary Budget-5
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GENERAL FUND (001) EXPENDITURES
2019 GENERAL FUND (001) EXPENDITURE BUDGET
GENERALIZED CATEGORIES
Personnel Benefits
Salaries Sr wages ., S12,205,716
S36,683,040
573!l.
isiss •
• Supplies,Equip,Misc
..
I • S1,482,469
• Capital Outlays
S65,000
Services Sr Charges
sti
$8,891,891
AMY. 139%
• •
M •
lntergov't Services
Transfers $1,908,965
S1,777,040 3.0%
Debt Service
$998,849
6-2019 City of Yakima Preliminary Budget