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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.