HomeMy WebLinkAbout11/13/2018 10 2019 Preliminary Budget Presentation and Public Hearing #1 ir -art * )4.11
BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEM ENT
Item No. 10.
For Meeting of: November 13, 2018
ITEM TITLE: Preliminary 2019 Budget Presentation and Public Hearing #1
SUBMITTED BY: Cliff Moore, City Manager
Ana Cortez,Assistant City Manager
Steve Groom, Director of Finance and Budget
SUMMARY EXPLANATION:
During the past several months, City staff developed estimates of projected revenues and
expenditures for the coming year to inform the 2019 Budget Proposal. Council considered and
discussed that draft budget during a series of four Study Sessions during October. Based on
Council direction from those sessions, the proposed 2019 Preliminary Budget was prepared and
posted to the City's website at yakimawagovservicesifinanceifinancial-reports/
ITEM BUDGETED:
STRATEGIC PRIORITY: Public Trust and Accountability
APPROVED FOR
SUBMITTAL: City Manager
STAFF RECOMMENDATION:
Staff recommends that City Council hold a public hearing regarding the preliminary 2019 budget.
BOARD/COMMITTEE RECOMMENDATION:
Distributed at the f,
Meeting 11-I�j-jK 10
2019 BUDGET HEARING # 1
CITY OF YAKIMA
ONCE UPON A TIME . . .
• Good news, Expenses: 2019<2018
• HOWEVER, the Revenue for 2019 is projected lower than expected
• What is the difference? ($786,276)
• We searched for two outcomes:
• Fill the deficit
• Apply more funds to Reserves
• On the way there, we found a third problem :
• Fund 514- Workers Comp
WITH COURAGE AND CONVICTION
CUTS AND SAVINGS REVENUES
• $45K — Quality of Life • Identify non General Fund
• $30K — Council savings sources: REET, CDBG, fees
• $8K — Firefighting Reserve • $355K new utility tax revenues
• $144K — Transportation and Misc. (excluding CCP utility tax
• $664K — Salary Savings revenue which is reinvested in
• Elimination of seven positions (2 in CCP and lowers fee from $2.75
FD and 5 in PD. Of these, 5 are to $2.60)
vacant. FEMA confirmed that
elimination of FD position was
allowable.
SUMMARY
Utility Tax increases(rates and taxes) $ (583,000.00)
Fees $ (40,000.00)
p i' ry ..5.+' . f a . i, 4 x cv 'fw t•C 'a Sit,, 0 3 y r s`4 if
iz •S-M a. ' -Se.St. a ;,4:ir.L dR.. ? -.e...,'u. s'c.vadw".,,,ti�s e'-ei•,;;�r d,,
wx:•rr r"• wzs + s` si z e ., , h .. �7ti war.
iQUALITYOF,ILIFE�- �„ � �6.� '� z
4thofJuI $ 20,000.00 4 . .`` .,.. � •y ( ) o5Thesefundshelped uswrth� ito
Battle of the Bands $ (5,000.00) • ,� ,�+,�h, ,` � 1 ° ,car #
5 de mayo $ (20,000.00) k u � 0z. + rk , '" � �' g a
t-. ° F Z i?r 4 .#. s p b
,��;�, , � ��x �. �:� � �i� ,� ✓ �$x78627,6Fun�d�001�zshortag gas�..
.Ss+.v.i .. -^`,'i.,.�us..s..e x--.- .-,,,,, .,,'' TS.:7'L.,:; z-,,- ,',ci.t F'-^s.__` hi. 4.t .y" A x '" L T•'* • .iti hF 0. mfjA-V "s
ADMINISTRATIVE ,+ .. sJ� � ,. . _ f5 4�> '*1 �1 ;t``; �, ' °� ,�� 7-, �# ;
4300 Transportation +Misc 4910 $ (144,265.68) ✓ -$380;000 shortage"'in Workers
At Xi:1ft FirefightingReserve 8,000.00 - ,,,3i x n ',? s5,.+74 �~ •iz`7.
$ ( ) ✓ $335 457 shortage inFReser�ves
NLC $ (17,000.00j r
Jurassic $ (13,000.00) 1,7 ' 'Kx ` �' «
3".-.nV�.vi-4 ; � a <�:v -4,5 n.:, c4;r ,,,,'4, �w','.,:' ,n,tti;
SALARY,SAVI'NGS 1: t..'.ii..�, '``., . ..'-, , �_ .:±1, . ,„,
Position Cuts $ (546,940.68)
Potential Transfers from GF to other Funds $ (117,367.00)
J.:.r1H`7r +! .•.t ,S u�` /t '? T.- uv .,... 'rti�,�k'.0 i.� '. 'h�,1% ,...:, ,,, •._..
TOTAL $ 1,514,573.36
MORE RESOURCES FOR
1. Economic Development 3. Healthy Communities: Children and
• YCDA Youth
• Convention Center Expansion • Fire , Parks, YKM
2. Public Safety • Community Centers: Maintenance and
• Traffic Calming Cap. Improvements
• Clean City Program • YPAL and OIC: $105,000/year for
• Alley Paver programs
• Utilities 4. Financial Priorities
• Additional DV Victim Advocate, Parks,
Streets and Bilingual Community • Workers Comp Internal Fund
Relations FTE's • Reserves
LONG TERM SUSTAINABILITY DISCUSSIONS
• REVENUES
• Levy Lid Lift
• Fire District
• Book of Fees
• Solid waste franchise agreements
• Vacant Property Registration
• EXPENSES
• Benefits and Salaries
KEEP IT
• 2019 BUDGET- Your Corporation is...
• Expenses: $253M
• Revenues: $247M
• GF (FUND 001) EXPENSES: $63.5M— INCLUDES $380K TO WORKERS
COMP
• GF (FUND 001) REVENUES: $63.8M
• GF (FUND 001) RESERVES: $335K
• FUND 001 RESERVE IN 2018 WAS 11.8%
• FUND 001 RESERVE IN 2019 IS 12.3%
Closing Messages
• The City Manager's Office is satisfied that the presented 2019 Budget
is not only balanced, but it adds strategic resources to City priorities
such as domestic violence, bilingual community engagement, streets,
traffic calming, improvements to community center, city
beautification and after school programs.
• To do this, the Council was asked to make hard decision affecting
public safety positions (filled and unfilled), administrative and quality
of life cuts and to consider new general fund revenues.
• We are not out of the tunnel. We are not at 16.7% yet and we still
have to address 514, BUT we are $335K better in our Reserves and
$380K better in Fund 514.