09/24/2019 03 City Manager Update BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEM ENT
Item No. 3.
For Meeting of: September 24, 2019
ITEM TITLE: City Manager update
SUBMITTED BY: Cynthia Martinez, Interim City Manager
SUMMARY EXPLANATION:
City Manager Update Items:
1. Budget study session schedule
2. 2018 audit results
3. LED lighting project update
4. Henry Beauchamp Community Center and Washington Fruit Community Center Master
Plans
5. Parliamentary procedure training set for December 16 from 9 a.m. to 4 p.m.
6. Strategic Priorities--no updates to report
ITEM BUDGETED:
STRATEGIC PRIORITY:
)
APPROVED FOR
14— /
SUBMITTAL: Interim City Manager
STAFF RECOMMENDATION:
BOARD/COMMITTEE RECOMMENDATION:
ATTACHMENTS:
Description Upload Date Type
ci bu et stu y session soh
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2
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FINANCE
2020 Budget—Council Study Sessions(2 hrs.each 10:00am to 12:00 noon)
Oct. 1
• Introduction
o Preliminary Budget(handout, also available online)
o Fundamentals
o Roll-forward from 2018 through current year forecast
o 5-year forecast
o Known hurdles
• Revenues
o MRSC guideline update(handout, also available online)
o Major funding forecasts
o Economic assumptions
• Expenses
o Salaries & benefits
o Insurance update
o General Fund
o Enterprise, Other Funds
• Questions, discussion, direction
Oct 3
• Introduction
o Recap (brief)
o Follow-up from prior session (if needed)
• Policy Issues
o Process guidelines
■ Funding
■ Prioritizing
■ Follow-up
o Presentation of specific policy issues (may overflow into next meeting)
• Questions, discussion, direction
Oct 8
• Introduction
o Recap (brief)
o Follow-up from prior session (if needed)
• Policy Issues
o Presentation of specific policy issues (overflow from prior meeting if needed)
• Revenue options
o Levy Lid Lift (includes current County valuation)
o Other Options
Oct 10
• Recap, Follow-up, discussion,further direction (more detail to follow as process develops)
2018 Audit Results
Comprehensive Annual Financial Report
( CAFR )
September 24 City Council Agenda Preview Meeting
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2018 Audit
1 . Year ended September 2018
• Can compare to 2017 to see trends
2 . Current year 2019
• Still in process, not fully known but projecting
3 . Budget year 2020
• Take full advantage of everything we know
2018 Audited Financials
1 . Audit completed — posted to website
2 . Auditor's opinion : fair presentation in all
material aspects ( clean opinion , p. 2 )
3 . Ending General Fund balance increased
$311,000 to $9, 061,000, 14 . 2% of
expenses ( p. 21 )
Findings Action Plans
1 . Report preparation controls
o Turnover of accounting manager and senior accounting staff
o Technical GASB reporting statement preparation procedures
o Learning city-specific transactions, transfers, classifications
come from actually doing the annual process as a team
2 . Federal disbarment verification process
o Training new transit staff due to turnover
o Routing process, multiple reviews
What Important Numbers
Do We Now Know ?
A 180- page report
which 6 pages tell us the most ?
The following screen shots are for reference only — see actual page numbers in CAFR
Population Trend
Page 160
1 . Increasing
2 . Census adjustment at 2010
2018 vs . 2017
City-wide, all funds
Page 9
1 . Revenue increased $5 . 7M
• Even though sales tax decreased
2 . Expenses Decreased $ 10. 1M
• All departments continue to be squeezed
3 . Unusual item :
• Plaza refunds ($ 1.7M)
4. New GASB accounting rule
• Showing liability for postemployment benefits
for existing employees ($31.3M)
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Trends - General vs . Enterprise
Page 143
1 . In total, fairly stable
2 . Governmental balance declining
3 . Enterprise balances increasing
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Assessed Property Value Trend
Page 150
1 . Increasing (self-explanatory!)
Overlapping Property Tax Rate Trends
Page 151
1 . City's rate has eroded since 2013
• 2013 $ 3 . 14
• 2019 $ 2 . 99
PAOPF!¢i^Tfl L:TES—DIRT .&D OVERiiPPTh G GOF'FAN]WE7 ZS
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General Fund Trends
P. 147- 148
1 . Revenues have increased
• Though intergovernmental decreased
2 . Expenses have also increased
• Capital expenditures decreased
FUND BAL4N'ES OFGO ENNnFWZYLFLIADS 1L i :INELWD A'1402S OF GOY£RN9(ENTAL FIIh4V
p . 147
Take -away Messages
1 . Clean audit
2 . General Fund reserves at 14. 2%
3 . Property Tax squeeze erodes services
4. General Fund services declining for years
5 . Staff turnover ( brain -drain ) impacted
financial credibility, controls - not just
Finance !
2018 General Fund Reserve : 14 . 2 %
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2019 In - process
Surprises / budget unknowns
_ Sales Tax flat
_ Utility Tax — Electricity ($700,000)
2018 tax reform offset cap removal
_ FD contract increase
_ Workers Comp increase
Positives :
• Tiger Mart property sale
• Interest income
2020 Budget
1 . Restoring General Fund reserves
2 . Challenges
1 . Reduced Utility Tax revenue
2 . Workers Comp
3 . General Insurance
4 . Vehicle replacement
5 . Staffing needs
2020 Budget
1 . Study sessions
1 . Oct 1
2 . Oct 3
3 . Oct 8
4 . Oct 10
2020 Budget Process
An increasingly well-managed city
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Distributed at the Meeting
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CITY OF Yakima
Washington
COMPREHENSIVE ANNUAL
FINANCIAL REPORT
For the year ended December 31,2018
REPORT PREPARED BY:
Department of Finance and Budget
Steve Groom Director of Finance&Budget
Kimberly Domine Financial Services Manager
Jeanne Thompson,CPA Financial Services Officer
Jennifer Coleman Financial Services Officer
Maria Simons Accountant
Wendy Harvey Accountant
Isabel Cruz Accountant
Kathryn Miles Financial Services Technician
'''''. , CITY OF Yakima
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CITY OF YAKMA CONSTITUENTS I T T U
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CITY OF Yakima
Washington
2018 PRINCIPAL OFFICIALS
CITY COUNCIL
Kathy Coffey Mayor,District 5
Dulce Gutierrez Assistant Mayor,District 1
Jason White District 2
Carmen Mendez District 3
Kay Funk District 4
Brad Hill District 6
Holly Cousens District 7
CITY MANAGEMENT EXECUTIVES
Cliff Moore City Manager
Jeff Cutter City Attorney
Connie Mendoza Director of Human Resources
Steve Groom Director of Finance&Budget
Joan Davenport Director of Community Development
Scott Schafer Director of Public Works
Robert Peterson Director of Yakima Air Terminal
Matthew Murray Police Chief
Aaron Markham Fire Chief
Kelley Olwell Municipal Court Presiding Judge
129 North Second Street
Yakima,WA 98901
(509)575-6000
www.yakimawa.gov
CITY OF Yakima
(17 p TABLE OF CONTENTS
COMPREHENSIVE ANNUAL FINANCIAL REPORT(CAFR)
For the year ended December 31,2018
INTRODUCTORY SECTION PAGE
Letter of Transmittal i
FINANCIAL SECTION
Washington State Auditor's Opinion 1
Management Discussion and Analysis 5
BASIC FINANCIAL STATEMENTS
Description of Basic Financial Statements 17
Government-wide Financial Statements
Statement of Net Position 18
Statements of Activities 20
Fund Statements
Governmental Funds Financial Statements
Balance Sheet 21
Reconciliation of the Balance Sheet to the Statement of Net Position 22
Statement of Revenues,Expenditures,and Changes in Fund Balances 23
Reconciliation of the Statement of Revenues,Expenditures and
Changes in Funds to the Statements of Activities 24
Statement of Revenues,Expenditures,and Changes in Fund Balance—
Budget and Actual-General Fund 25
Statement of Revenues,Expenditures,and Changes in Fund Balance—
Budget and Actual-Neighborhood Development 26
Proprietary Funds Financial Statements
Statement of Net Position 28
Statement of Revenues,Expenses,and Changes in Fund Net Position 32
Statement of Cash Flows 34
Fiduciary Fund Statements
Statement of Fiduciary Net Position 38
Notes to the Financial Statements 39
REQUIRED SUPPLEMENTARY INFORMATION
Description of Supplementary Schedules 97
Schedule of Proportionate Share of the Net Pension Liability 97
Schedule of Employer Contributions 100
Schedule of Changes in Net Pension Liability and Related Ratios 102
Schedule of Changes in Total OPEB Liability and Related Ratios 103
NONMAJOR FUNDS
Nonmajor Governmental Funds
Combining Balance Sheet 105
Combining Statement of Revenues,Expenditures,and Changes in Fund Balances 106
Nonmajor Special Revenue Funds
Description of Nonmajor Special Revenue Funds 107
Combining Balance Sheet 109
Combining Statement of Revenues,Expenditures,and Changes in Fund Balances 112
Nonmajor Debt Service Funds
Description of Nonmajor Debt Service Funds 115
Combining Balance Sheet 116
Combining Statement of Revenues,Expenditures,and Changes in Fund Balances 117
Nonmajor Capital Project Funds
Description of Nonmajor Capital Project Funds 119
Combining Balance Sheet 120
Combining Statement of Revenues,Expenditures and Changes in Fund Balances 122
Nonmajor Permanent Funds
Description of Nonmajor Permanent Fund 125
Combining Balance Sheet 126
Combining Statement of Revenues,Expenditures,and Changes in Fund Balances 127
INTERNAL SERVICE FUNDS
Description of Internal Service Funds 129
Combining Statement of Net Position 130
Combining Statement of Revenues,Expenses and Changes in Fund Net Position 134
Combining Statement of Cash Flows 136
AGENCY FUND
Description of Agency Fund 141
Statement of Changes in Assets and Liabilities 142
STATISTICAL SECTION (UNAUDITED)
Net Position by Component 143
Change in Net Position 144
Governmental Activities Tax Revenues by Source 146
Fund Balances of Governmental Funds 147
Changes in Fund Balances of Governmental Funds 148
General Governmental Tax Revenues by Source 149
Assessed Value and Estimated Actual Value of Taxable Property 150
Property Tax Rates—Direct and Overlapping Governments 151
Principal Property Taxpayers 152
Property Tax Levies and Collections 153
Ratios of Outstanding Debt by Type 154
Ratios of General Bonded Debt Outstanding 155
Direct and Overlapping Governmental Activities Debt 156
Legal Debt Margin Information 157
Pledged Revenue Coverage Water&Wastewater 158
Pledged Revenue Coverage Irrigation 159
Demographic and Economic Statistics 160
Principal Employers 161
Full Time Equivalent City Government Employees by Function 162
Operating Indicators by Function 163
Capital Asset Statistics by Function 164
City of Yakima—General Information 165
DEPARTMENT OE FINANCE&BUDGET
F `E 129 North Second Street
gakima,WA 98901
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*Yaki ma
September 6,2019
Honorable Mayor and Members of the City Council
City of Yakima,Washington
We submit to you this Comprehensive Annual Financial Report of the City of Yakima for the fiscal year ended
December 31,2018,in compliance with State Statute RCW 43.09.230,but more importantly to exercise responsible
stewardship of the public funds entrusted to us by our taxpayers,voters and citizens.
Management assumes full responsibility for both the completeness and reliability of the information contained in this
report. We believe the data,as presented,is accurate in all material respects and are reported in a manner that fairly
presents the financial position and results of City operations,in conformity with GAAP(Generally Accepted
Accounting Principles)and with statements issued by GASB(Governmental Accounting Standards Board). All
footnotes,analysis and disclosures are intended to enable the reader to gain the maximum understanding of the
City's activities and financial position.
THE REPORTING ENTITY
This report includes all funds,agencies,and boards controlled by or dependent on the City of Yakima. The City is
separate and district from overlapping entities:Yakima County,Yakima Valley Regional Library,the Yakima,West
Valley and Union Gap School Districts,Yakima Health District,Yakima Conference of Governments,and the Yakima
Housing Authority,which have separate governmental or other entity characteristics,substantial autonomy and
consequently are not component units of the City. The Yakima Regional Public Facilities District(PFD),however, is a
separate governmental agency created by interlocal agreements with the Cities of Yakima,Union Gap,and Selah for
the purpose of supporting the capital needs of the City owned Convention Center and Capitol Theatre. Because most
of the PFD revenue is dedicated to debt service and capital maintenance of City-owned facilities,the PFD is a blended
component unit,and is accounted for as a special revenue fund.
CITY PROFILE
The City of Yakima is located in central Washington State,145 miles southeast of Seattle,200 miles southwest of
Spokane,and 180 miles northeast of Vancouver,Washington. It encompasses 28.25 square miles and has an estimated
2018 population of 94,190,the 11th largest city in the State of Washington. The region is served by rail,highway and
air transportation facilities,which have helped develop the City as the commercial and business center of Central
Washington. Yakima is the county seat of,and the largest city in,Yakima County.
Introductory Section-i
The City of Yakima was incorporated in 1886 as a First Class charter city under the Council/Manager form of
government. Council members consist of 7 members elected from separate districts. The Council chooses the Mayor
from within its own membership every two years.
The City provides a full range of municipal services,which include public safety(police,fire,and building safety),
municipal court,public improvements (streets,traffic signals),parking and code enforcement,sanitation(solid waste
disposal,sanitary wastewater utility),water and irrigation utilities,airport,transit,community development,parks
and recreation,and general administrative services. The City operates two swimming pools-one outdoor and one
indoor,along with two water playground areas,a par-three golf course,two skate parks and one dog park.
The City of Yakima lies within the fertile Yakima River Valley. Apples,cherries,pears,grapes and other fruits,plus a
wide variety of field crops including hops and vegetables,make the Yakima Valley one of the top agricultural-
producing areas of the nation. Irrigation in the valley is made possible from water from the U.S. Bureau of
Reclamation's Yakima Project. The Yakima Valley produces about 77% of the hops in the United States and contains
over 12,000 acres of wine grapes,making the City of Yakima a key storage,packing,and distribution hub.
Over 250 manufacturing firms in the Yakima area produce a variety of products and services,including numerous
food processing companies,a major plastic packaging producer and aircraft parts.
Transportation
The air,highway and rail systems in the Yakima Valley provide service and support to local agricultural,industrial,
commercial and tourism-related businesses. Commercial airline service is provided by Alaska Airlines through the
Yakima Air Terminal. Greyhound Bus has regular passenger service schedules to and from Yakima,and Burlington
Northern Santa Fe(BNSF) supplies railroad services.
Hospitals
There are two major hospitals in the Yakima area. Virginia Mason Memorial Hospital inpatient services include,but
are not limited to,Cardiology,Critical Care,Orthopedics,the Family Birthplace,Pediatrics Unit,Neonatal Intensive
Care,Surgery,Psychiatric Health Care,Respiratory Therapy,as well as a Laboratory and a Pharmacy. Astria Regional
Medical and Cardiac Center provides a full complement of medical services,including open heart surgery,a 17-bed
accredited inpatient rehabilitation unit,a newly renovated and expanded 21-bed emergency department,a level III
trauma designation and on-campus MRI.
Cancer Care Clinic
The North Star Lodge is a 43,000 square foot outpatient Cancer Center built in 2000,and is the centerpiece of
Memorial's cancer care services. The innovative and comprehensive cancer care offered at North Star Lodge allows
Central Washington cancer patients the same innovative treatments available at major cancer centers throughout the
country.
Museum
The 65,000 square foot Yakima Valley Museum's historical exhibits about the Yakima Valley include natural history,
American Indian culture,pioneer life,early city life,and information regarding the Yakima Valley's agriculture history.
Economic Development
The nonprofit Yakima County Development Association(New Vision),originally funded with$1,000,000 in donations
from local business and industry,has made tangible progress over the years in business expansion,industrial
recruitment,development of new business ventures and infrastructure development with broad public and private
sector involvement. These businesses have created over 600 new jobs and are expected to add more jobs in 2019 in
Yakima County.
Higher Education
There are several higher education institutions serving the Yakima area. The Pacific Northwest University of Health
Sciences (PNWU) offers doctoral degrees in osteopathic medicine and has a current enrollment of just under 600
ii-Introductory Section
students. Yakima Valley College(YVC) offers both 2 and 4-year degrees and a multitude of academic programs.Perry
Technical Institute offers nationally-recognized vocational / technical programs. Heritage University is located a few
miles southeast of Yakima,and is an accredited four-year liberal arts college.
Tourism
Yakima is a popular location for sports events,conventions and a variety of tourism activities due to its dry climate,
approximately 300 days of sunshine annually,and convenient central location in the State. There are 35 parks,a total
of 393 acres,located within the City. In addition,there are two public and one private 18-hole golf courses,three nine-
hole courses and 24 public tennis courts. There are also six little league fields and ten softball fields-eight of which
have lighting. Six soccer fields located are located in City parks,and the SOZO Sports soccer complex includes 13 full
size soccer fields.
Facilities within the area which provide for various conventions,sports and other tourism-related activities include:
• The City-owned Yakima Convention Center has 41,000 square feet of meeting space available and an additional
12,500 square feet expansion project approved by City Council. The 23,400 square foot main ballroom can be
divided into eight separate rooms and the south ballroom can be divided into six separate rooms,allowing
many possible variations. The Convention Center hosts recurring conferences and events drawing widely
from the Pacific Northwest because of Yakima's location,weather and amenities.
• The City-owned Capitol Theatre is a magnificent and historical theatre originally built in 1920,seats 1,500 and
holds over 150 activities and events annually. The theatre includes a Production Center and a 400 seat black
box theatre and an expanded loading/unloading area that will accommodate large touring productions.
• The Yakima Valley Sun Dome,a multipurpose trade and convention center with 56,000 square feet of usable
space and seating for up to 8,000 people. The Sun Dome is utilized for meetings,concerts,trade shows and
indoor sporting events,and regularly hosts many statewide,regional and high school sporting events.
• SOZO Sports of Central Washington is a championship level sports complex. It has both grass and synthetic
playing surfaces available.
• The Seasons Performance Hall is a non-profit organization that supports musical and cultural events for
residents and visitors to the Yakima Valley.
Yakima also provides hunting,fishing and biking opportunities,along with numerous recreation opportunities within
an hour's drive which include snow skiing,mountain climbing,rafting,hiking,and rock climbing. Yakima is also the
head of the William O.Douglas trail,offering hikers passage from Yakima to Mount Rainier.
The hop and wine grape production sustains many local industries by bringing increasing numbers of tourists to the
Yakima Valley's outstanding vineyards,wineries and breweries. There are over 100 wineries located in the Yakima
Valley area,and many wines have received significant recognition and awards.
ECONOMIC OUTLOOK
Yakima's population,and residential and commercial property tax base,continues to grow. In 2018,assessed property
valuation grew 2.6%,of which 1.6%was due to growth and new construction. Residential building permits are
expected to remain strong as evidenced with 2019 measurable permits and starts out-pacing 2018's in the early
months.
The City of Yakima saw sales and retail tax revenue growth in 2018 with taxable sales 4.8%over 2017.
In 2007,Washington State established a Local Infrastructure Financing Tool (LIFT) program,as outlined in RCW
39.102. Yakima's application to the State Community Economic Revitalization Board (CERB) was approved,granting
a project award of up to $1 million in state tax credit per year for up to 25 years. The financing will be used for public
infrastructure improvements related to the redevelopment of the former Boise Cascade/Yakima Resources sawmill
and plywood plant.
Introductory Section-iii
FORMAT OF REPORT
This report has been prepared in conformance with Generally Accepted Accounting Principles. It presents financial
data at a city-wide level and incorporates increasing levels of detail as necessary to report the financial position and
operating results of the City's individual funds,to demonstrate compliance with finance-related legal and contractual
requirements and to assure adequate disclosure at both the individual fund level and on a City-wide basis.
This report is divided into three sections:
• The Introductory Section-provides general information on the City including general demographic and
economic information useful in assessing the City's financial environment.
• The Financial Section-begins with the independent auditor's report,followed by management's discussion
and analysis of the financial activities and position of the City. Next,the basic financial statements,required
supplemental information and notes to the financial statements are presented in accordance with Generally
Accepted Accounting Principals(GAAP). Additional fund level information is then presented for funds not
reported separately in the basic financial statements.
• The Statistical Section-provides a broad range of trend data covering key financial indicators from the past ten
years. It also contains demographic and miscellaneous data that may be useful in assessing the City's
financial condition.
ACKNOWLEDGEMENTS
Washington State Statute RCW 43.09.260 requires that an audit of the books of account,financial records,and
transactions of all administrative departments of the City be conducted at least once every three years by the State
Auditor's Office. However,it is the practice of the State Auditor to conduct audits of cities the size of Yakima on an
annual basis. The State Auditors' opinion related to their audit of the enclosed financial statements is an integral part
of this report. The City of Yakima has received an unqualified opinion on the financial statements (refer to the
Auditor's opinion in the front of the Financial Section). The assistance of the Examiners from the Office of the State
Auditor is also gratefully acknowledged.
Preparation of this report was accomplished only with the professional and dedicated services of the Finance staff.
Appreciation should also be noted for the City Council's active interest,encouragement,and support,setting the
course for the City with sound and responsible governance.
SUMMARY
The City of Yakima continues to seek to be responsible and responsive in balancing the services that the citizens of
Yakima require with the ever-changing level and mix of resources available. The community continues to grow and
recognizes the long-term implications for fiscal stewardship and strategic planning. City Council has continued to
reaffirm its commitment to ramp up reserves for future general fund funding gaps,long-term economic development
and fiscal sustainability.
For more information regarding the City's budget,reporting and strategic planning,please refer to the City's website
for ongoing current information and reports.
Respectfully submitted,
Cliff Moore Steve Groom
City Manager Director of Finance and Budget
iv-Introductory Section
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8,4311/
Office of the Washington State Auditor
Pat McCarthy
September 6, 2018
Council
City of Yakima
Yakima,Washington
REPORT ON THE FINANCIAL STATEMENTS
We have audited the accompanying financial statements of the governmental activities,the business type
activities, each major fund and the aggregate remaining fund information of the City of Yakima, as of and
for the year ended December 31, 2018, and the related notes to the financial statements,which collectively
comprise the City's basic financial statements as listed in the table of contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America;this includes the
design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement,whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted
our audit in accordance with auditing standards generally accepted in the United States of America and the
standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial statements,whether due to fraud or error.
In making those risk assessments,the auditor considers internal control relevant to the City's preparation
and fair presentation of the financial statements in order to design audit procedures that are appropriate in
the circumstances,but not for the purpose of expressing an opinion on the effectiveness of the City's
internal
Insurance Building,P.O.Box 40021 Olympia,Washington 98504-0021 (360)902-0370 Pat.Mc('thythl®o.wa.gov
Comprehensive Annual Financial Report(CAFR)-1
control. Accordingly,we express no such opinion. An audit also indudes evaluating the appropriateness of
accounting policies used and the reasonableness of significant accounting estimates made by management,
as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinions.
Opinion
In our opinion,the financial statements referred to above present fairly,in all material respects,the
respective financial position of the governmental activities,the business-type activities, each major fund
and the aggregate remaining fund information of the City of Yakima,as of December 31,2018,and the
respective changes in financial position and,where applicable,cash flows thereof,and the respective
budgetary comparisons for the General Fund and Neighborhood Development Fund for the year then
ended in accordance with accounting principles generally accepted in the United States of America.
Matters of Emphasis
As discussed in Note 1 to the financial statements,in 2018,the City adopted new accounting guidance,
Governmental Accounting Standards Board Statement No. 75,Accounting and Financial Reporting for
Postemployment Benefits Other Than Pensions. Our opinion is not modified with respect to this matter.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management's
discussion and analysis and required supplementary information listed in the table of contents be
presented to supplement the basic financial statements. Such information,although not a part of the basic
financial statements,is required by the Governmental Accounting Standards Board who considers it to be
an essential part of financial reporting for placing the basic financial statements in an appropriate
operational,economic or historical context. We have applied certain limited procedures to the required
supplementary information in accordance with auditing standards generally accepted in the United States
of America,which consisted of inquiries of management about the methods of preparing the information
and comparing the information for consistency with management's responses to our inquiries, the basic
financial statements, and other knowledge we obtained during our audit of the basic financial statements.
We do not express an opinion or provide any assurance on the information because the limited procedures
do not provide us with sufficient evidence to express an opinion or provide any assurance.
Supplementary and Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City's basic financial statements. The combining financial statements and schedules are
presented for the purposes of additional analysis and are not a required part of the basic financial
statements. Such information is the responsibility of management and was derived from and relates
directly to the underlying accounting and other records used to prepare the financial statements. This
information has been subjected to auditing procedures applied in the audit of the basic financial statements
and certain additional procedures,induding comparing and reconciling such information directly to the
underlying accounting and other records used to prepare the financial statements or to the financial
statements themselves, and other additional procedures in accordance with auditing standards generally
accepted in the United States of America. In our opinion,the information is fairly stated,in all material
respects,in relation to the basic financial statements taken as a whole.
2-Comprehensive Annual Financial Report(CAFR)
Our audit was conducted for the sole purpose of forming opinions on the financial statements that
collectively comprise the City's basic financial statements as a whole. The Introductory and Statistical
Sections are presented for purposes of additional analysis and is not a required part of the basic financial
statements of the City. Such information has not been subjected to the auditing procedures applied in the
audit of the basic financial statements and,accordingly,we do not express an opinion or provide any
assurance on it.
OTHER REPORTING REQUIRED BY GOVERNMENT AUDITING STANDARDS
In accordance with Government Auditing Standards,we will also issue our report dated September 6,2019,
on our consideration of the City's internal control over financial reporting and on our tests of its
compliance with certain provisions of laws,regulations,contracts and grant agreements and other matters.
That report will be issued under separate cover in the City's Single Audit Report. The purpose of that
report is to describe the scope of our testing of internal control over financial reporting and compliance and
the results of that testing,and not to provide an opinion on internal control over financial reporting or on
compliance. That report is an integral part of an audit performed in accordance with Government Auditing
Standards in considering the City's internal control over financial reporting and compliance.
Sincerely,
Pat McCarthy
State Auditor
Olympia,WA
Comprehensive Annual Financial Report(CAFR)-3
4-Comprehensive Annual Financial Report(CAFR)
MANAGEMENT'S DISCUSSION AND ANALYSIS
This Comprehensive Annual Financial Report offers readers the City's financial statements for the fiscal year ended
December 31,2018. To best understand the City's financial position and activities,readers are encouraged to consider
the information in this narrative overview and analysis in conjunction with the accompanying transmittal letter,basic
financial statements and the notes to the financial statements immediately following.
FINANCIAL HIGHLIGHTS
The City of Yakima is committed to focusing on the fundamentals of city management in order to navigate economic
cycles,infrastructure management challenges,and services that often rely on contingency planning and careful course
corrections. The population of Yakima,the residential and commercial property tax base,and commerce that
generates sales tax-all continue to grow slowly and steadily. Local demographics continue to indicate a below-
national-average per-capita income,therefore sound fiscal city management is a key economic factor as the City seeks
to provide the foundation for citizens,homeowners and businesses to thrive.
• The 2018 ending fund balance of the General Fund was$9.1 million at the end of 2018,which represents
14.2%of total General Fund expenditures. Because the fund balance of the General Fund remains less than
the policy target of 16.7%,City Council has made achieving the target the top strategic priority of the City.
The current 5-Year Plan,and every year's budget,outlines management's commitment to rebuild fund
balance to policy target over the next few years. The 2017 ending fund balance of the General Fund was$8.8
million, 14.2%of total General Fund expenditures.
• The total assets and deferred outflows of the City of Yakima exceeded its liabilities and deferred inflows at
December 31,2018,by$300.0 million. Net position invested in capital (net of depreciation and related debt)
account for 92.3%of this amount,with a value of$276.8 million.
• The City's total net position increased by$17.0 million to$331.3 million from $314.3 million,prior to a
required adjustment to the OPEB liability resulting from the implementation of GASB 75. This direct
adjustment of$31.3 million to the beginning fund balance reduced the ending fund balance to $300.0 million.
Funding received for various general revenues increased by$0.5 million and charges for services increased by
$2.9 million. The increase in net position was primarily due to capital projects.
OVERVIEW OF THE FINANCIAL STATEMENTS
This discussion and analysis is intended to serve as an introduction to the City of Yakima's basic financial statements.
The basic financial statements are comprised of three components: 1) Government-wide financial statements,2) Fund
financial statements,and 3)Notes to the financial statements.
Government-Wide Financial Statements
There are two government-wide financial statements,the statement of net position and the statement of activities,
which are designed to provide readers with a broad overview of the City of Yakima's finances in a manner similar to a
private sector business. Both of the government-wide financial statements distinguish functions of the City of Yakima
that are principally supported by taxes and intergovernmental revenues (referred to as"governmental activities")
from functions that are intended to recover all or a significant portion of their costs through user fees and charges
(referred to as"business-type activities"). The governmental activities of the City of Yakima include a full range of
local governmental services provided to the public,such as public safety(police,municipal court,fire,and building
codes);public improvements (streets,traffic signals);parks and recreation;community development;and general
administrative services. The business-type activities of the City of Yakima include sanitation (solid waste disposal,
wastewater treatment,and stormwater management);potable and irrigation water systems;transit;and airport.
Comprehensive Annual Financial Report(CAFR)-5
The Statement of Net Position presents information on all of the City of Yakima's assets and deferred outflows,
liabilities and deferred inflows,with the difference between the two groupings reported as net position. This
statement serves a purpose similar to that of the balance sheet of a private sector business. Over time,increases or
decreases in net position may serve as a useful indicator of changes in the City's financial position. However,this is
just one indicator of financial health of the City. Other indicators include the condition of the City's infrastructure
systems (roads,drainage systems,bridges,etc.),changes in property tax base,and general economic conditions
within the City.
The Statement of Activities (Changes in Net Position) presents information showing how the government's net
position changed during the year. Because it separates program revenue (revenue generated by specific programs
through charges for services,grants,and contributions) from general revenue(revenue provided by taxes and other
sources not tied to a particular program),it shows to what extent each program has to rely on taxes for funding. All
changes in net position are reported using the accrual basis of accounting which requires that revenue be reported
when earned and expenses be reported when the goods and services are received,regardless of the timing of the cash
flow. Items such as uncollected taxes,unpaid vendor invoices for items received in 2018,and earned but unused
vacation leave will be included in the statement of activities as revenue and expense,even though the cash associated
with these items may not be received or distributed in 2018.
Fund Financial Statements
A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for
specific activities or objectives. The City of Yakima,like other state and local governments,uses fund accounting to
ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City of Yakima
can be divided into three categories: Governmental Funds,Proprietary Funds,and Fiduciary Funds. Governmental
Funds are used to account for most,if not all,of a government's tax supported activities. Proprietary Funds are used
to account for a government's business-type activities,where all or part of the costs of activities are supported by fees
and charges that are paid directly by those who benefit from the activities. Fiduciary Funds are used to account for
resources that are held by the government as a trustee or agent for parties outside of the government. The resources
of fiduciary funds cannot be used to support the government's own programs.
Governmental Funds-The Governmental Fund Balance Sheet and the Governmental Fund Statement of Revenues,
Expenditures,and Changes in Fund Balances present a separate column of financial data for the General Fund and
the Neighborhood Development Fund,which are considered to be major funds,based on criteria established by
GASB Statement#34. Data from the remaining governmental funds are combined into a single,aggregated
presentation. The governmental fund financial statements can be found immediately following the government-wide
financial statements. Individual fund data for each of the nonmajor governmental funds is provided in the form of
combining statements,outside of the basic financial statements.
Governmental funds are used to account for essentially the same functions reported as governmental activities in the
government-wide financial statements. However,unlike government-wide financial statements which use accrual
accounting,governmental fund financial statements focus on near-term inflows and outflows of spendable resources
and on balances of spendable resources available at the end of the fiscal year. Such information is useful in evaluating
a government's near-term financing requirements in comparison to near-term resources available.
Because the focus of governmental fund financial statements is narrower than that of government-wide financial
statements,it is useful to compare information presented for governmental funds with similar information presented
for governmental activities in the government-wide financial statements. By doing so,readers may better understand
the long-term impact of the government's near-term financing decisions. Both the Governmental Fund Balance Sheet
and the Governmental Fund Statement of Revenues,Expenditures,and Changes in Fund Balances provide
reconciliation to the governmental activities column in the government-wide statements,in order to facilitate this
comparison.
6-Comprehensive Annual Financial Report(CAFR)
The City maintains budgetary controls over its operating funds. The objective of budgetary controls is to ensure
compliance with legal provisions embodied in the annual appropriated budget. Budgets for governmental funds are
established in accordance with state law and are adopted on a fund level. Capital outlays are approved on an item by
item basis or project basis. A budgetary comparison statement is provided for the General Fund and all special
revenue funds to demonstrate compliance with the budget.
Proprietary Funds-There are two types of proprietary funds: Enterprise and Internal Service. Enterprise Funds are
used to report the same functions presented as business-type activities in the government-wide financial statements.
The City uses enterprise funds to account for its Solid Waste (Refuse);Wastewater;Domestic Water;Irrigation;
Stormwater;Transit;and Airport functions. Internal Service Funds (the second type of proprietary funds) accumulate
and allocate costs internally among the City's various functions. The revenues and expenses of the internal service
funds that are duplicated in other funds through allocations are eliminated in the government-wide statements,with
the remaining balances included in the governmental activities column.
Proprietary fund statements follow the governmental fund statements in this report. They provide the same type of
information as the government-wide financial statements,only in more detail,since both apply the accrual basis of
accounting. In comparing the Proprietary Fund Statement of Net Position to the business-type column on the
Government-Wide Statement of Net Position,you will notice that the total net position agree and,therefore,need no
reconciliation. In comparing the total assets and total liabilities between the two statements,you will notice slightly
different amounts. This is because the"internal balances" line on the government-wide statement combines the"due
from other funds" (asset) and the"due to other funds" (liabilities) from the proprietary fund statement in a single line
in the asset section of the government-wide statement.
Typically,individual fund data for each of the nonmajor funds is provided in the form of combining statements.
However,because the Stormwater Fund is the only non-major proprietary fund,it is listed in a separate column with
the major funds.
Fiduciary Funds-Fiduciary funds are used to account for resources held for the benefit of parties outside the
government. These funds are not reflected in the government-wide financial statement because the resources of those
funds are not available to support the City of Yakima's own programs. The accounting used for fiduciary funds is
much like that used for proprietary funds.
The City of Yakima has one fiduciary fund-an agency fund. The basic fiduciary fund financial statements can be
found following the proprietary fund financial statements,in the Basic Financial Statements section.
Notes to the Financial Statements
The notes provide additional information that is essential to a full understanding of the data provided in the
government-wide and fund financial statements. The notes to the financial statements can be found immediately
following the basic financial statements in this report.
GOVERNMENT-WIDE FINANCIAL ANALYSIS
Statement of Net Position
As noted earlier,net position may serve over time as a useful indicator of a government's financial position. The City
of Yakima's net position totaled$300.0 million at December 31,2018. The following table reflects the condensed
Government-Wide Statement of Net Position with comparative totals for 2017.
Comprehensive Annual Financial Report(CAFR)-7
NET POSITION
(Restated for GASB 75)
Governmental Activities Business-Type Activities Total
2018 2017 2018 2017 2018 2017
Assets
Current and other assets $ 78,323,480 $ 60,463,481 $ 57,937,295 $ 51,133,222 $ 136,260,775 $ 111,596,703
Net capital assets 185,469,099 192,089,737 165,010,857 168,167,790 350,479,956 360,257,527
Total assets 263,792,579 252553,218 222,948,152 219,301,012 486,740,731 471,854,230
Deferred outflows 3,412,198 3,111,008 1,162,406 1,395,955 4,574,604 4,506,963
Total assets&deferred outflows 267,204,777 255,664,226 224,110,558 220,696,967 491,315,335 476,361,193
Liabilities
Payables&other liabilities 22,815,939 19,008,044 7,369,302 6,903,795 30,185,241 25,911,839
Long-term liabilities(as restated) 113,958,270 119,904,177 35,473,943 40,824,181 149,432,213 160,728,358
Total liabilities 136,774,209 138,912,221 42,843,245 47,727,976 179,617,454 186,640,197
Deferred inflows 9,502,908 5,418,119 2,178,115 1,265,277 11,681,023 6,683,396
Total liabilities&deferred inflows 146,277,117 144,330,340 45,021,360 48,993,253 191,298,477 193,323,593
Net position
Net investment in capital assets 140,858,487 151,106,237 135,945,718 136,111,813 276,804,205 287,218,050
Restricted 28,292,001 25,019,672 1,835,000 1,835,000 30,127,001 26,854,672
Unrestricted(as restated) (48,222,828) (64,792,023) 41,308,480 33,756,900 (6,914,348) (31,035,123)
Total net position $ 120,927,660 $ 111,333,886 $ 179,089,198 $ 171,703,713 $ 300,016,858 $ 283,037,599
The City of Yakima's total assets stand at$486.7 million as of December 31,2018. Of this amount,$350.5 million is
accounted for by capital assets,which includes some infrastructure and construction in progress. Out of$185.5
million in capital assets reported in Governmental activities at December 31,2018,$97.1 million(52.4%) is accounted
for by infrastructure acquisitions(including the right-of-way land associated with these projects and land under the
road).
Of the remaining City assets,approximately$93.2 million was accounted for in cash,cash equivalents,restricted cash
and investments,$22.7 million in various receivables,$19.2 million in net pension assets and$1.2 million inventories
and prepayments.
At December 31,2018,the City had outstanding liabilities of$179.6 million,of which$149.4 million is considered
long-term and is due over an extended period of time. There is a deficit in unrestricted net position in the
governmental funds because the City has long-term commitments that are greater than currently available resources,
primarily long-term citywide pension benefits and other post-employment benefit liabilities. Refer to the notes to the
financial statements for a more in depth discussion of pension and other long-term liabilities.
Current liabilities for the entire City in both governmental and business-type activities total$30.2 million,and include
$4.7 million in accounts&contracts payable,$3.1 million in claims and judgments payable,$8.1 million in accrued
salaries and benefits,$4.8 million in compensated absences accrued and other various liabilities. Also included are
debt payments due within the next calendar year totaling$7.7 million.
The largest portion of the City's net position(92.3%) reflects its investment in capital,less any outstanding related
debt used to acquire those assets. The City's capital assets,which are used to provide services to citizens,are
investments in capital and are not available for future spending. Although the City's investment in capital assets is
reported net of related debt,it should be noted that the resources needed to repay this debt must be provided from
other sources,since the capital assets themselves cannot be used to liquidate these liabilities.
8-Comprehensive Annual Financial Report(CAFR)
Approximately 10.0%of the City's net position is subject to external restrictions on how they may be used (restricted
by the Revised Code of the State of Washington or by contractual agreements with parties outside of the primary
government).
At December 31,2018,the City of Yakima reports a net position of$300.0 million,of which$120.9 million represents
governmental activities and$179.1 million represents business-type activities.
CHANGES IN NET POSITION
Governmental Activities Business-Type Activities Total
2018 2017 2018 2017 2018 2017
Revenues
Program revenues
Charges for services $ 15,169,719 $ 14,889,953 $ 49,277,671 $ 46,682,236 $ 64,447,390 $ 61,572,189
Operating grants&contributions 10,361,798 6,981,703 2,938,172 2,601,883 13,299,970 9,583,586
Capital grants&contributions 2,561,617 2,340,255 3,261,658 4,789,572 5,823,275 7,129,827
General revenues
Property taxes 19,838,562 18,278,481 19,838,562 18,278,481
Sales and use taxes 21,541,898 23,146,192 6,170,802 5,886,780 27,712,700 29,032,972
Other taxes and fees 14,591,045 13,452,504 14,591,045 13,452,504
Other revenues (110,314) 884,738 143,180 39,688 32,866 924,426
Total revenues 83,954,325 79,973,826 61,791,483 60,000,159 145,745,808 139,973,985
Expenditures
General government 11,570,476 12,577,931 11,570,476 12,577,931
Public safety 42,831,078 47,245,264 42,831,078 47,245,264
Utilities 576,055 707,982 576,055 707,982
Transportation 10,363,978 12,837,330 10,363,978 12,837,330
Economic environment 6,503,413 7,307,839 6,503,413 7,307,839
Public health services 759,348 626,296 759,348 626,296
Cultural and recreational 7,369,950 7,492,432 7,369,950 7,492,432
Interest on long-term debt 1,556,902 1,492,793 1,556,902 1,492,793
Transit 9,092,300 9,489,641 9,092,300 9,489,641
Airport 1,975,650 2,235,534 1,975,650 2,235534
Refuse 4,950,421 4,846,811 4,950,421 4,846,811
Wastewater 16,802,079 17,326,405 16,802,079 17,326,405
Water 7,928,287 7,749,353 7,928,287 7,749,353
Irrigation 2,328,569 2,362,997 2,328,569 2,362,997
Stormwater 2,410,734 2,890,477 2,410,734 2,890,477
Total Expenditures 81,531,200 90,287,867 45,488,040 46,901,218 127,019,240 137,189,085
Excess(deficiency)before transfers 2,423,125 (10,314,041) 16,303,443 13,098,941 18,726,568 2,784,900
Extraordinary Item (1,747,309) (1,747,309)
Transfers 8,917,960 8,263,074 (8,917,960) (8,263,074)
Change in net position 9,593,776 (2,050,967) 7,385,483 4,835,867 16,979,259 2,784,900
Net position-beginning 111,333,886 143,851,574 171,703,713 167,690,965 283,037,599 311,542,539
Direct adj to net position-GASB 75 (30,466,721) (823,118) (31,289,839)
Net position-ending $ 120,927,662 $ 111,333,886 $ 179,089,196 $ 171,703,714 $ 300,016,858 $ 283,037,600
Comprehensive Annual Financial Report(CAFR)-9
The Statement of Activities (Changes in Net Position)
The City of Yakima's total net position increased by$17.0 million over 2017. Net position for governmental activities
increased by$9.6 million primarily due to the annual actuarial adjustment to pension assets and liability,while
business-type activities increased by$7.4 million. The increase in business-type activities comes from a combination
of rate increases and actuarial adjustments to pension assets and liability.
Total revenues for the City of Yakima were$145.7 million in 2018. Governmental activities provided$84.0 million
(57.6%),while business-type activities added$61.8 million(42.4%).
Expenses for the year totaled$127.0 million,with governmental activities accounting for$81.5 million or 64.2%and
business-type activities accounting for$45.5 million or 35.8%. Key elements in changes in net position are shown in
the Changes in Net Position table.
Governmental Activities-Within governmental activities,tax revenue accounted for 66.7% of total revenue sources,
with grants and contributions accounting for 15.4%. The remaining 17.9% of revenue was provided by charges for
services,interest income,and miscellaneous revenues.
Governmental activities increased net position by$9.6 million or 6.8%,and total government revenues increased by
$4.0 million or 5.0%. The significant fluctuations in revenue are as follows:
• Grants&Contributions increased by$3.6 million,primarily due to a$400,000 DOT grant and$343,000 in
Department of Justice funding.
• Total taxes increased by$1.1 million or 2.0% from$54.9 million to$56.0 million.
• Property Taxes increased$1,560,081.
• Sales Tax decreased by$1.6 million or 7.4%from 2017. However,$2.6 million of Criminal Justice
Sales tax dollars are now recorded as program revenue,so actual results were an increase of$1.0
million. This key revenue source was budgeted to grow at about 3.9%,so actual results were slightly
better than projected.
• Other Taxes and Fees increased by$1.1 million,due to increases in utility tax collections,such as
water,wastewater,refuse,gas and electric.
• An extraordinary item was noted for 2018. Due to the Downtown Plaza advisory vote by Yakima Citizens
which resulted in a rejection of the project,private donations of over$1.7 million had to be refunded.
• Transfers from Business-Type Activities consists primarily of in-lieu utility taxes of$7.7 million. Also
included are transfers by enterprise funds to the Vehicle Replacement Reserve.
The largest program expenses consist of Public Safety (52.5%);General Government(14.2%) and Transportation
(12.7%). These programs accounted for 79.4%of total governmental expenses.
In total,governmental expenses decreased$8.8 million or 9.7%. This decrease is almost entirely related to the
fluctuating actuarial valuation of pension assets and liabilities.
Following are graphs which illustrate revenue by source and expenditures by program for governmental funds in
2018.
10-Comprehensive Annual Financial Report(CAFR)
REVENUES BY SOURCE-GOVERNMENTAL ACTIVITIES
Capital Grants&
Operating Grants&
Contributions
Contributions
3.0%
12.3%
Property Taxes
23.6%
Charges for Services
18.1.
Other Taxes and Fees Sales and Use Taxes
25.6%
EXPENSES AND PROGRAM REVENUES- GOVERNMENTAL ACTIVITIES
$50,000,000
$40,000,000
$30,000,000 —
$20,000,000 —
$10,000,000 — 1111
General Public Utilities Trans- Economic Public Cultural& Interest on
Government Safety portation Environment Health Recreational Long-Term
Services Debt
Expenses ® Program Revenues
Business-Type Activities-Of the$61.8 million in business type revenues,79.7%was provided by charges for services,
with the remaining amount provided by grants,contributions,transit sales tax and interest income. Overall,business
type revenues demonstrated an increase of$1.8 million or 3.0%over 2017. Capital Grants decreased by about$1.5 million
or 31.9%,due to Transit not purchasing any vehicles in 2018.
Comprehensive Annual Financial Report(CAFR)-11
Of the$45.5 million in business-type expenses,36.9%are associated with the Wastewater program and 20.0%with
Transit,domestic water programs represent about 17.4%,Refuse 10.9%,Irrigation 5.1%,Stormwater 5.3%and Airport
4.3%. Generally,changes in expenses are in line with changes in general operating increases.
The following charts depict the expenses and program revenues,with a breakdown of revenues by source for the
business-type activities.
REVENUES BY SOURCE—BUSINESS-TYPE ACTIVITIES
Operating Grants&
Contributions o Capital Grants&
b�° Contributions
45.3%
Sales and Use Taxes
10.0`%>
Other Revenues
0.2°%
Charges for Services r'
79.7%....:
EXPENSES AND PROGRAM REVENUES—BUSINESS TYPE ACTIVITIES
$25,000,000 —
$20,000,000
$15,000,000 —
$10,000,000 —
$5,000,000
$o _■ .................. _
Transit Airport Refuse Wastewater Water Irrigation Stormwater
Expenses ® Program Revenues
Charges for services represent the majority 79.7%of revenue in these funds. The only fund that does not rely heavily
on charges for service is the Transit fund,which is subsidized by a voter approved local option sales tax of 0.3%and a
federal operating grant.
12-Comprehensive Annual Financial Report(CAFR)
FINANCIAL ANALYSIS OF THE CITY'S FUNDS
The City of Yakima uses fund accounting to ensure compliance with finance related legal and regulatory
requirements.
Governmental Funds Analysis
The General Fund is a major fund and the principal mechanism for delivering general government services. The
Neighborhood Development Fund is also a major fund by definition due to the long term Notes Receivable and
Deferred Inflow balances. These balances represent both the current and long term portions of housing loans made to
low income residents. The full amount remaining due on the loans is reflected in the Balance Sheet-Governmental
Funds.
The focus of the City of Yakima's governmental funds is to provide information on near-term inflows,outflows,and
balances of spendable resources. In particular,unassigned fund balance may serve as a useful measure of a
government's net resources available for spending at the end of the fiscal year. As of December 31,2018,the City's
governmental funds reported combined fund balances of$31.8 million. Of this total amount,$7.1 million(22.3%) is
unassigned and available for spending within these funds. About$0.9 million is not spendable (cemetery perpetual
care),$12.7 million is restricted (primarily for transportation,capital improvements,and public safety),$5.1 million is
committed primarily for transportation system improvements and$6.0 million is assigned primarily for parks and
public safety.
The General Fund is the primary operating fund of the City of Yakima. At the end of the 2018 fiscal year,the fund
balance of the General Fund was$9.1 million. The fund balance is about 14.2% of total general fund expenditures
(which represents about a 1.7 month reserve). Total assets in the General Fund amounted to$17.9 million,accounting
for 36.4%of total governmental fund assets.
The fund balance of the City of Yakima's General Fund increased by$311,149 during the current fiscal year,due
mostly to lower General Government expenditures than budgeted.
The General Fund accounts for 67.0%of all governmental fund revenue and 66.1%of all expenditures.
The other major fund,Neighborhood Development,saw its fund balance increase by$179,375.
Most other funds had only modest changes in fund balance,however,Parks Capital and Yakima Revenue
Development Area funds saw the largest increases due to bond proceeds for the Aquatic Center project and the timing
of revenues vs.project expenses,respectively. The Central Business District Capital fund has a negative fund balance
due to the Plaza project being canceled and all donations being refunded,despite design expenses already having
been incurred. This refund of$1.7 million is reported as an extraordinary item on the Governmental Statement of
Revenues,Expenditures and Changes in Fund Balance. In 2019,REET 1 will transfer enough to bring this fund back
into balance.
Enterprise Funds Analysis
Transit,Refuse,Wastewater,Domestic (potable)Water,Irrigation and the Yakima Air Terminal are considered major
funds in the City's 2018 Financial Statements,while Stormwater is the only nonmajor fund.
As of December 31,2018,the City's enterprise funds (internal service fund balances are treated entirely as
governmental activities) reported combined net position of$179.1 million,with$76.6 million or approximately 42.8%
being contributed by the Wastewater fund. Additionally,about$135.9 million(75.9%) of net position is accounted for
by investment in capital assets,net of related debt,$1.8 million is restricted for debt service and$41.3 million is
unrestricted. The Notes to the Financial Statements(Note 12) present segment information that is grouped according
to revenue bond requirements for these business type activities.
Comprehensive Annual Financial Report(CAFR)-13
GENERAL FUND BUDGETARY HIGHLIGHTS
During the year,the 2018 General Fund Expenditure budget was increased from$64.4 million to$64.5 million,
consisting entirely of the carry forward of appropriations for outstanding encumbrances/commitments which were to
be funded from General Fund reserves.
Total General Fund revenues were originally budgeted at$68.9 million,with only a slight increase of$257,856 in the
final budget. Actual revenue decreased by$3,081,089,below amended budget projections due to allocating a portion
of Sales Tax revenue directly to the debt service funds,rather than transferring these funds after they have been
received.
General Fund expenditures,including other financing uses,totaled$65.7 million,less than the final budget of$68.8
million by$3.0 million. These expenditure savings happened as a result of allocating Sales Tax revenue directly to
debt service funds,rather than with an operating transfer,as mentioned above.
The General Fund budget is typically adopted using achievable forecast assumptions and expenditures are managed
against budget. Revenue is conservatively estimated and expenditure estimates utilize probable costs. In 2018,
revenue was$3.1 million less than budgeted,while expenditures,including transfers out,was$3.0 million less than
budgeted,resulting in a net negative change in budgeted fund balance of$46,068.
CAPITAL ASSET AND DEBT ADMINISTRATION
Capital Assets
The City of Yakima's net investment in capital assets,including construction in progress,for its governmental and
business-type activities as of December 31,2018,amounts to$350.5 million (net of accumulated depreciation). This
investment in capital assets includes land,buildings,system improvements,machinery and equipment,park
facilities,infrastructure,and construction in progress on buildings and systems.
Governmental Activities-Capital assets from governmental activities decreased$6.6 million,decreasing from $192.1
million in 2017 to$185.5 million in 2018. Capital asset additions increased slightly,however,depreciation remained
similar to 2017,resulting in a net decrease in value.
Business-Type Activities-Business-type capital activities decreased by$3.2 million,attributable primarily to fewer
capital projects completed in 2018,offset by depreciation.
CAPITAL ASSETS (NET OF DEPRECIATION)
Governmental Activities Business-Type Activities Total
2018 2017 2018 2017 2018 2017
Capital assets
Land $ 17,884,343 $ 17,884,343 $ 5,523,404 $ 5,523,404 $ 23,407,747 $ 23,407,747
Buildings 29,841,778 31,124,983 24,462,650 26,153,747 54,304,428 57,278,730
Improvements other than buildings 7,135,964 7,519,153 100,345,989 97,174,698 107,481,953 104,693,851
Machinery&equipment 16,343,285 18,531,624 15,356,071 16,729,838 31,699,356 35,261,462
Infrastructure 97,100,066 104,839,090 97,100,066 104,839,090
Intangibles 880,686 982,158 880,686 982,158
Construction in progress 17,163,662 12,190,544 18,442,057 21,603,946 35,605,719 33,794,490
Total capital assets $ 185,469,098 $ 192,089,737 $ 165,010,857 $ 168,167,791 $ 350,479,955 $ 360,257,528
Additional information on the City of Yakima's capital assets can be found in Note 4 of this report.
14-Comprehensive Annual Financial Report(CAFR)
Long-Term Debt Administration
On December 31,2018,the City of Yakima had total bonded debt outstanding of$47.8 million. Of this amount,$35.5
million is classified as governmental activity and backed by the full faith and credit of the City. The remaining$12.2
million represents bonds secured solely by pledges of specific revenue sources(i.e. revenue bonds).
New debt issued in 2018 included$16.0 million in general obligation bonds,$8.0 million of which was for
construction of the YMCA Aquatic Center,while$4.5 million and$3.5 million in bonds were issued to refund the 2015
soccer complex and the 2013 Streets resurfacing bonds respectively,in order to take advantage of lower interest rates.
The City also borrowed$500,000 in SIED loan money to provide River Road infrastructure improvements relating to
the Aquatic Center.
The City's remaining capacity for non-voted debt on December 31,2018,was approximately$61.9 million in
comparison to the total legal limit of$93.6 million. The City has a policy of retaining 30%of its non-voted capacity for
emergencies. In March,2017 the City was downgraded to"A+"rating from Standard&Poor's for general obligation
debt. This downgrade was the result of weakening economic factors in the City,particularly income levels,as well as
level of General Fund reserves. The combined Water and Wastewater utility was affirmed at"AA-"in September
2015. A summary of the City's debt follows. More detailed information on the City's long-term obligations can be
found in Note 9 of the Notes to the Financial Statements in this report.
OUTSTANDING DEBT
Governmental Activities Business-Type Activities Total
2018 2017 2018 2017 2018 2017
General obligation bonds $ 35,544,359 $ 30,810,281 $ $ $ 35,544,359 $ 30,810,281
Revenue bonds 12,210,157 13,879,803 12,210,157 13,879,803
Intergovernmental loans 5,836,380 5,719,371 16,874,077 18,325,171 22,710,457 24,044,542
Other debt 3,212,575 4,254,649 3,212,575 4,254,649
Total outstanding debt $ 44,593,314 $ 40,784,301 $ 29,084,234 $ 32,204,974 $ 73,677,548 $ 72,989,275
ECONOMIC FACTORS
There are many factors that impact City revenues and expenses,including voter-approved initiatives over the last few
years,as well as changes in State and Federal regulations;following is a list of the most significant. The City is
committed to the continued pursuit and application of sound fiscal management practices to ensure balanced budgets
are maintained and critical core services are prioritized in the budget.
• Property Tax Rate Cap. In 2001 state voters approved Initiative 747,which capped property tax levy growth
each year at a maximum of 1%,plus any additions for annexations and new construction. This initiative
restricted local government revenue growth,which makes budget balancing difficult because costs driven by
actual inflation rates have grown at an average of 3 times the 1%limitation.
• New Revenues. In 2017,City Council approved two revenue measures for the 2018 budget. The first was to
fund the Transportations Benefit District,which began assessing a$20 car tab fee after July 1st. The
Assessment was initially budgeted to increase general government revenue by$550,000/year for 2018,which
includes only six month of collections and will be used to fund Street projects. Subsequent years will be
adjusted to estimate full year collections. These funds are accounted for in the Streets Capital Fund. The
second revenue measure was to lift the utility tax cap,which affects only the largest utility customers,and
was budgeted to increase general government revenues by an additional$500,000/year.
• Downtown Economic Development. The City has actively participated in several projects to upgrade the
downtown central business district over the past several years,including infrastructure and pedestrian
improvements in the downtown core,and the upgrade/expansion of the historic City-owned Capitol Theatre,
located in the center of the downtown area. The City completed a Downtown Master Plan in 2013,and
design work on projects identified in the plan are in progress.
Comprehensive Annual Financial Report(CAFR)-15
• Local Employment. The unemployment rate(6.3%for 2018) in the County continues to be higher than the
state and national average(5.6%for 2018),but is the lowest recorded unemployment rate in Yakima County
since records have been kept. The County's predominant industry is agriculture and related support,which
has a history of high unemployment rates,seasonal employment,and low median household income(Yakima
is 62.6% of the state average). However,the agriculture-based local economy was not as negatively affected
in the recent severe national recession as many other cities around the state and country. Yakima County is
experiencing growth in total employment. Between 2017 and 2018,the Yakima County civilian labor force
added an average of 3,280 jobs,a 2.6%upturn.
• Economic Redevelopment. A major economic development initiative that the City embarked on is a
competitive state redevelopment/tax increment program called Local Infrastructure Financing Tool (LIFT),as
set forth in RCW 39.102. The redevelopment area consists of 556 acres adjacent to Interstate 82,formerly used
as a sawmill and plywood plant. The City received an award of up to$1 million per year for 25 years from
the state to support required infrastructure improvements to service the new mixed use proposed
development. The first year of participation by the state was 2011. This project is in coordination of the
project with Yakima County and the State Department of Transportation,as well as the current landowners.
• Tourism. Two newly-constructed hotels opened in 2019 will add to the city's 21-hotel, 1,900-room supply.
The city-owned 68,000 sq. ft. Convention Center generates approximately 96,000 room nights for local hotels.
City council approved an 18,500 sq.ft. expansion project in the 2019 budget,completion likely in 2021,that
will add demand for lodging tax-generating hotel rooms.
• In 2015,City voters approved a Charter amendment to designate$750,000 annually to a Parks Capital
program. The amount grows annually with the consumer price index,and services the debt on two
development projects: a multipurpose sports complex which opened in 2016,and a new aquatic center on
schedule to open in 2019.
The 2019 budget is balanced for all funds,within guidelines established by city management,to accomplish
municipal service levels and priorities set by City Council. For the 2019 budget,the major revenues were estimated
assuming the continued growth of residential and commercial property valuations and with a cautious eye on the
local economy's continued growth. The City Council's budget priorities are aligned around the strategic priorities of
public safety;improving the built environment;economic development;public trust and accountability;and
partnership development.
REQUESTS FOR INFORMATION
This report,along with other City financial documents,is posted on the City's website at www.yakimawa.gov/
services/finance. Questions concerning any of the information provided in this report or requests for additional
financial information should be addressed to: City of Yakima—Finance Department, 129 North Second Street,Yakima,
WA 98901.
16-Comprehensive Annual Financial Report(CAFR)
BASIC FINANCIAL STATEMENTS
The basic financial statements and note disclosures comprise the minimum acceptable fair presentation in
conformity with Generally Accepted Accounting Principles (GAAP). Basic financial statements are designed to be
"liftable" from the Financial Section of the Comprehensive Annual Financial Report(CAFR) for widespread
distribution to users requiring less detailed information than is contained in the full CAFR.
GOVERNMENT-WIDE FINANCIAL STATEMENTS
Statement of Net Position-City governmental and business-type assets and liabilities,with the difference reported
as net position.
Statement of Activities-City governmental and business-type revenues and expenses,with the difference reported
as change in net position.
GOVERNMENTAL FUNDS FINANCIAL STATEMENTS
Balance Sheet,Governmental Funds -General Fund,Neighborhood Development Fund and aggregated amounts
for all other non-major governmental funds.
Reconciliation of the Balance Sheet of Government Funds to the Statement of Net Position
Statement of Revenues,Expenditures,and Changes in Fund Balances,Governmental Funds -General Fund,
Neighborhood Development Fund and aggregated information for all other non-major governmental funds.
Reconciliation of the Statement of Revenues,Expenditures and Changes in Fund Balances of Governmental
Funds to the Statement of Activities-General Fund,Neighborhood Development Fund and aggregated
information for all other non-major governmental funds.
Reconciliation of the Statement of Revenues,Expenditures,and Changes in Fund Balances of Governmental
Funds to the Government Wide Statement of Activities
Statement of Revenues,Expenditures,&Changes in Fund Balance,Budget&Actual -General Fund and
Neighborhood Development Fund.
PROPRIETARY FUNDS
Statement of Net Position,Proprietary Funds-Major funds include Airport,Transit,Refuse,Wastewater,Water
and Irrigation. Also included is Stormwater,the only nonmajor fund,as well as a separate column for aggregate
information for internal service funds
Statement of Revenues,Expenses,and Changes in Fund Net Position,Proprietary Funds -Information for each of
the enterprise funds,as well as a separate column for aggregate information for internal service funds.
Statement of Cash Flows,Proprietary Funds-Information on the sources and uses of cash for each of the
enterprise funds and aggregate information for internal service funds.
FIDUCIARY FUNDS
Statement of Fiduciary Net Position-Information on the Agency fund,assets and liabilities,and net position.
NOTES TO THE FINANCIAL STATEMENTS
Disclosure and further detail information to assist the reader in a better understanding of the financial statements
and the data presented within them.
Comprehensive Annual Financial Report(CAFR)-17
CITY OF Yakima
STATEMENT OF NET POSITION
December 31,2018 Page 1 of 2
Governmental Business-Type Primary Gov't
Activities Activities Total
Assets
Current Assets
Cash and cash equivalents $ 23,685,061 $ 16,227,263 $ 39,912,324
Cash with fiscal agent 220,307 12,293 232,600
Investments 20,801,348 30,369,533 51,170,881
Receivables,net allowance for uncollectible accounts
Taxes 5,491,265 1,158,194 6,649,459
Accounts 3,874,328 4,195,071 8,069,399
Notes and contracts receivable 3,430,766 191,886 3,622,652
Due from other governments 734,030 3,570,611 4,304,641
Interest receivable 84,104 84,104
Inventories and prepayments 811,896 377,445 1,189,341
Total current assets 59,133,105 56,102,296 115,235,401
Noncurrent assets
Restricted cash 1,835,000 1,835,000
Capital assets not being depredated
Land 17,884,343 5,523,404 23,407,747
Construction in progress 17,163,662 18,442,057 35,605,719
Capital assets,net of accumulated depreciation
Buildings 29,841,778 24,462,650 54,304,428
Machinery,equipment&vehicles 16,343,285 15,356,071 31,699,356
Infrastructure 97,100,066 97,100,066
Other improvements&utility systems 7,135,964 100,345,989 107,481,953
Intangibles — 880,686 880,686
Other noncurrent assets
Net pension asset 19,190,375 19,190,375
Total noncurrent assets 204,659,473 166,845,857 371,505,330
Total assets 263,792,578 222,948,153 486,740,731
Deferred outflows of resources
Deferred amount on refunding 262,207 262,207
Deferred outflows related to pension 3,412,198 900,198 4,312,396
Total deferred outflows of resources 3,412,198 1,162,405 4,574,603
Total assets&deferred outflows of resources 267,204,776 224,110,558 491,315,334
The Notes to the Financial Statements,found in Basic Financial Section,are an integral part of this statement
18-Comprehensive Annual Financial Report(CAFR)
CITY OF Yakima
STATEMENT OF NET POSITION
December 31,2018 Page 2 of 2
Governmental Business-Type Primary Gov't
Activities Activities Total
Liabilities
Current liabilities
Accounts payable 3,303,259 1,158,907 4,462,166
Retainage payable 17,300 243,115 260,415
Claims&judgments payable 3,102,947 3,102,947
Accrued salaries and benefits 6,594,383 1,466,307 8,060,690
Compensated absences 1,042,370 222,841 1,265,211
Custodial accounts 1,970,317 1,092,928 3,063,245
Due to other governments 6,327 33,210 39,537
Other current liabilities 67,937 25,746 93,683
Interest payable 217,604 158,836 376,440
Debt principal due within one year 4,855,971 2,865,081 7,721,052
Other post-employment benefits-current 1,637,526 102,332 1,739,858
Total current liabilities 22,815,941 7,369,303 30,185,244
Noncurrent liabilities
Compensated absences 7,591,126 1,444,483 9,035,609
Pension Liability 19,990,999 5,248,267 25,239,266
Other postemployment benefits(OPEB) 46,638,803 2,562,041 49,200,844
Debt principal due more than one year 39,737,342 26,219,152 65,956,494
Total noncurrent liabilities 113,958,270 35,473,943 149,432,213
Total liabilities 136,774,211 42,843,246 179,617,457
Deferred inflows of resources
Deferred inflows related to pension 9,271,044 2,096,560 11,367,604
Deferred inflows related to OPEB 231,864 81,555 313,419
Total deferred inflows of resources 9,502,908 2,178,115 11,681,023
Total liabilities&deferred inflows of resources 146,277,119 45,021,361 191,298,480
Net position
Net investment in capital assets 140,858,487 135,945,718 276,804,205
Restricted for:
Public safety&emergency programs 1,913,427 1,913,427
Arterial street construction&maintenance 2,147,691 2,147,691
Housing&economic development 932,905 932,905
Debt service 248,465 1,835,000 2,083,465
Capital improvements 5,678,845 5,678,845
Tourism&conventions 1,770,123 1,770,123
Pension plans 15,600,545 15,600,545
Unrestricted (48,222,828) 41,308,480 (6,914,348)
Total net position $ 120,927,660 $ 179,089,198 $ 300,016,858
The Notes to the Financial Statements,found in Basic Financial Section,are an integral part of this statement
Comprehensive Annual Financial Report(CAFR)-19
CITY OF Yakima
STATEMENT OF ACTIVITIES
For the Year Ended December 31,2018 Page 1 of 1
Net(Expense)Revenue
Program Revenues and Changes in Net Position
Charges for Grants&Contributions Government Business Primary Gov't
Functions/Programs Expenses Services Operating Capital Activities Activities Total
Governmental activities
General government $ 11,570,476 $ 428,971 $ $ $ (11,141,505) $ $ (11,141,505)
Public safety 42,831,078 8,356,729 6,873,642 (27,600,707) (27,600,707)
Utilities 576,055 331,075 (244,980) (244,980)
Transportation 10,363,978 41,477 1,468,134 2,168,067 (6,686,300) (6,686,300)
Economic environment 6,503,413 1,899,766 1,847,383 15,801 (2,740,463) (2,740,463)
Public health services 759,348 15,119 64,403 (679,826) (679,826)
Cultural and recreational 7,369,950 4,096,582 108,235 377,749 (2,787,384) (2,787,384)
Interest on long-term debt 1,556,902 (1,556,902) (1,556,902)
Total governmental activities 81531,200 15,169,719 10,361,797 2,561,617 (53,438,067) (53,438,067)
Business-type activities
Transit 9,092,300 1,091,178 2,932,403 (5,068,719) (5,068,719)
Airport 1,975,650 1,480,834 5,769 791,210 302,163 302,163
Refuse 4,950,421 7,561,614 2,611,193 2,611,193
Wastewater 16,802,079 22,254,768 1,479,851 6,932,540 6,932,540
Water 7,928,287 10,068,757 768,828 2,909,298 2,909,298
Irrigation 2,328,569 3,101,651 773,082 773,082
Stormwater 2,410,734 3,718,869 221,769 1,529,904 1,529,904
Total business-type activities 45,488,040 49,277,671 2,938,172 3,261,658 9,989,461 9,989,461
Total activities $ 127,019,240 $ 64,447,390 $ 13,299,969 $ 5,823,275 (53,438,067) 9,989,461 (43,448,606)
General revenues and transfers
Taxes
Property taxes 19,838,562 19,838,562
Sales and use taxes 21,541,898 6,170,802 27,712,700
Other taxes and fees 14,591,045 14,591,045
Unrestricted investment earnings 991,254 11,760 1,003,014
Miscellaneous 89,288 44,446 133,734
Extraordinary item-plaza donations refund (1,747,309) (1,747,309)
Gain(loss)on disposition of capital assets (1,190,856) 86,975 (1,103,881)
Transfers 8,917,960 (8,917,960)
Total general revenues.special items&transfers 63,031,842 (2,603,977) 60,427,865
Change in net position 9,593,775 7,385,484 16979,259
Net position-beginning 141,800,607 172,526,831 314,327,438
Direct adjustment to beginning net position-GASB 75 (30,466,721) (823,118) (31,289,839)
Net position-ending $ 120,927,661 $ 179,089,197 $ 300,016,858
The Notes to the Financial Statements,found in Basic Financial Section,are an integral part of this statement
20-Comprehensive Annual Financial Report(CAFR)
CITY OF Yakima
BALANCE SHEET
GOVERNMENT FUNDS
December 31,2018 Page 1 of 1
Neighborhood Other Total
General Development Governmental Governmental
Fund Fund Funds Funds
Assets
Cash and cash equivalents $ 4,223,857 $ 985,632 $ 14,520,864 $ 19,730,353
Cash with fiscal agent 57,861 162,500 220,361
Investments 5,777,764 10,557,486 16,335,250
Receivables,net allowance for uncollectible accounts
Taxes 5,022,803 468,462 5,491,265
Accounts 2,565,125 18,742 254,562 2,838,429
Notes and contracts receivable 3,281,995 49,129 3,331,124
Due from other governments 125,485 458,974 584,459
Due from other funds 200,000 200,000
Interest receivable 84,104 84,104
Inventories and prepayments 10,000 230,495 240,495
Total assets 17,866,999 4,286,369 26,902,472 49,055,840
Deferred outflows of resources
Total assets&deferred outflows of resources $ 17,866,999 $ 4,286,369 $ 26,902,472 $ 49,055,840
Liabilities
Accounts payable $ 1,058,785 $ 93,704 $ 1,709,936 $ 2,862,425
Retainage payable 17,300 17,300
Accrued salaries and benefits 5,236,137 47,449 1,064,297 6,347,883
Custodial accounts 417,143 1,488,518 1,905,661
Due to other governments 2,566 637 2,775 5,978
Due to other funds 500,000 500,000
Other current liabilities 67,937 67,937
Total liabilities 6,782,568 141,790 4,782,826 11,707,184
Deferred inflows of resources
Deferred unavailable revenue/taxes 288,824 212,720 501,544
Unavailable revenue and notes 1,733,734 3,281,995 56,596 5,072,325
Total deferred inflows of resources 2,022,558 3,281,995 269,316 5,573,869
Total liabilities&deferred inflows of resources 8,805,126 3,423,785 5,052,142 17,281,053
Fund balance
Nonspendable 10,000 914,891 924,891
Restricted 862,584 11,820,139 12,682,723
Committed 1,437,988 3,678,408 5,116,396
Assigned 5,969,415 5,969,415
Unassigned 7,613,885 (532,523) 7,081,362
Total fund balance 9,061,873 862,584 21,850,330 31,774,787
Total liabilities,deferred inflows&fund balances $ 17,866,999 $ 4,286,369 $ 26,902,472 $ 49,055,840
The Notes to the Financial Statements,found in Basic Financial Section,are an integral part of this statement
Comprehensive Annual Financial Report(CAFR)-21
CITY OF Yakima
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENT FUNDS
TO THE STATEMENT OF NET POSITION
December 31,2018 Page 1 of 1
Amounts reported for governmental activities in the statement of net position are different because:
Total fund balances-government funds(previous page) $ 31,774,787
Capital assets used in governmental activities are not financial resources and,therefore,are not reported
in the funds. 176,290,811
Other long-term assets are not available to pay for current period expenditures and,therefore,are
reported as unavailable revenue in the funds. 5,573,869
Internal service funds are used by management to charge the costs of services to individual funds. The
assets and liabilities of the internal service funds are included in government activities in the statement
of net position. 13,857,216
Long-term liabilities,including bonds payable,are not due and payable in the current period and
therefore are not reported in the funds. (53,157,192)
Pension and other postemployment benefits are not due and payable in the current period and
therefore are not reflected in the funds (53,411,831)
Net position of governmental activities $ 120,927,660
The Notes to the Financial Statements,found in Basic Financial Section,are an integral part of this statement
22-Comprehensive Annual Financial Report(CAFR)
CITY OF Yakima
STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES -
GOVERNMENT FUNDS
For the Year Ended December 31,2018 Page 1 of 1
Neighborhood Other Total
General Development Governmental Governmental
Fund Fund Funds Funds
Revenues
Taxes and assessments $ 49,429,462 $ $ 17,814,389 $ 67,243,851
Licenses and permits 1,743,770 646,993 2,390,763
Intergovernmental revenues 2,631,200 713,398 3,519,036 6,863,634
Charges for services 9,475,920 7,107,753 16,583,673
Fines and forfeitures 1,766,263 1,766,263
Contributions and donations 2,936 929,955 932,891
Investment earnings 924,669 18,085 97,349 1,040,103
Other revenue 68,746 508,534 1,111,511 1,688,791
Total revenues 66,042,966 1,240,017 31,226,986 98,509,969
Expenditures
Current
General government 14,057,480 953,297 15,010,777
Public safety 44,397,722 5,510,162 49,907,884
Utilities 1,733,277 267,588 2,000,865
Transportation 678,973 5,196,502 5,875,475
Economic environment 1,526,135 1,026,185 1,081,626 3,633,946
Public health services 17,849 574,469 592,318
Cultural and recreational 6,150,211 6,150,211
Capital outlay
General government 103,743 58,951 162,694
Public safety 426,610 426,610
Transportation 1,297,947 1,297,947
Economic environment 34,457 34,457
Cultural and recreational 4,825,378 4,825,378
Debt service
Principal 984,324 3,596,616 4,580,940
Interest and related charges 129,643 1,576,019 1,705,662
Total Expenditures 63,629,146 1,060,642 31,515,376 96,205,164
Excess(deficiency)of revenue over(under)expenditure 2,413,820 179,375 (288,390) 2,304,805
Other financing(sources)uses
Transfers in 13,762,616 13,762,616
Transfers out (2,107,055) (12,058,158) (14,165,213)
Proceeds from issuance of long-term debt 16,450,000 16,450,000
Payments to refunded debt (7,886,993) (7,886,993)
Sale of capital assets 4,384 37,592 41,976
Total other financing sources(uses) (2,102,671) 10,305,057 8,202,386
Special and extraordinary items (1,747,309) (1,747,309)
Net change in fund balance 311,149 179,375 8,269,358 8,759,882
Fund balance-beginning 8,750,726 683,209 13,580,971 23,014,906
Fund balance-ending $ 9,061,875 $ 862,584 $ 21,850,329 $ 31,774,788
The Notes to the Financial Statements,found in Basic Financial Section,are an integral part of this statement
Comprehensive Annual Financial Report(CAFR)-23
CITY OF Yakima
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT
OF ACTIVITIES
For the Year Ended December 31,2018 Page 1 of 1
Net change in fund balances as shown on Governmental Funds Statement of Revenues,Expenditures,
and Changes in Fund Balance: $ 8,759,881
Governmental funds report capital outlays as expenditures. However,in the statement of activities the
cost of those assets is allocated over their estimated useful lives and reported as depreciation expense.
This is the amount by which depreciation exceeded capital outlays in the current period. (5,387,809)
In the statement of activities,only the gain on the sale of fund assets is reported,whereas in the
governmental funds,the proceeds from the sale increase financial resources. Thus,the change in net
position differs from the change in fund balance by the cost of the fund assets. This also includes
donations of capital assets and infrastructure obtained by annexation. (199,403)
Revenues in the statement of activities that do not provide current financial resources are not reported as
revenues in the funds. 675,823
The issuance of debt proceeds provide current financial resources to governmental funds,while the
repayment of principal consumes the current financial resources of governmental funds.Neither has any
effect on Net Position.Also,governmental funds report the effect of premiums,discounts,and similar
items when debt is first issued,whereas these amounts are deferred and amortized in the statement of
activities.This amount is the net effect of these differences in the treatment of debt and related items. (3,833,306)
Some expenses reported in the statement of activities do not require the use of current financial resources
and therefore are not reported as expenditures in governmental funds(compensated absences,OPEB,
inventory). 8,121,778
Internal service funds are used by management to charge the costs of services to individual funds. The
net revenue(expenses)of the internal service funds is reported with governmental activities. 1,456,811
Change in net position,as reflected on the Statement of Activities $ 9,593,775
The Notes to the Financial Statements,found in Basic Financial Section,are an integral part of this statement
24-Comprehensive Annual Financial Report(CAFR)
CITY OF Yakima
STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES -
BUDGET&ACTUAL - GENERAL FUND
For the Year Ended December 31,2018 Page 1 of 1
Variance
Budgeted Amounts Actual with Final
Original Final Amounts Budget
Revenues
Taxes and assessments $ 52,929,760 $ 52,929,760 $ 49,429,462 $ (3,500,298)
Licenses and permits 1,437,482 1,437,482 1,743,770 306,288
Intergovernmental revenues 2,602,673 2,860,529 2,631,200 (229,329)
Charges for services 9,595,369 9,595,369 9,475,920 (119,449)
Fines and forfeitures 1,798,132 1,798,132 1,766,263 (31,869)
Contributions and donations 3,750 3,750 2,936 (814)
Investment earnings 432,600 432,600 924,669 492,069
Other revenue 66,433 66,433 68,746 2,313
Total revenues 68,866,199 69,124,055 66,042,966 (3,081,089)
Expenditures
Current
General government 14,890,932 14,890,932 14,057,480 833,452
Public safety 44,233,274 44,366,080 44,397,722 (31,642)
Utilities 1,824,146 1,824,146 1,733,277 90,869
Transportation 722,923 722,923 678,973 43,950
Economic environment 1,614,978 1,614,978 1,526,135 88,843
Public health services 26,650 26,650 17,849 8,801
Capital outlay
General government 65,000 65,000 103,743 (38,743)
Debt service
Principal 904,872 904,872 984,324 (79,452)
Interest and related charges 80,237 80,237 129,643 (49,406)
Total Expenditures 64,363,012 64,495,818 63,629,146 866,672
Excess(deficiency)of revenue over(under)expenditure 4,503,187 4,628,237 2,413,820 (2,214,417)
Other financing(sources)uses
Transfers out (3,974,020) (4,271,020) (2,107,055) 2,163,965
Sale of capital assets 4,384 4,384
Total other financing sources(uses) (3,974,020) (4,271,020) (2,102,671) 2,168,349
Net change in fund balance 529,167 357,217 311,149 (46,068)
Fund balance-beginning 7,205,269 8,750,726 8,750,726
Fund balance-ending $ 7,734,436 $ 9,107,943 $ 9,061,875 $ (46,068)
The Notes to the Financial Statements,found in Basic Financial Section,are an integral part of this statement
Comprehensive Annual Financial Report(CAFR)-25
CITY OF Yakima
STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES -
BUDGET&ACTUAL -NEIGHBORHOOD DEVELOPMENT
For the Year Ended December 31,2018 Page 1 of 1
Variance
Budgeted Amounts Actual with Final
Original Final Amounts Budget
Revenues
Intergovernmental revenues $ 1,312,936 $ 2,961,867 $ 713,398 $ (2,248,469)
Investment earnings 18,085 18,085
Other revenue 168,932 168,932 508,534 339,602
Total revenues 1,481,868 3,130,799 1,240,017 (1,890,782)
Expenditures
Current
Economic environment 1,472,705 3,121,636 1,026,185 2,095,451
Capital outlay
Economic environment 34,457 34,457
Total Expenditures 1,472,705 3,121,636 1,060,642 2,129,908
Excess(deficiency)of revenue over(under)expenditure 9,163 9,163 179,375 170,212
Net change in fund balance 9,163 9,163 179,375 170,212
Fund balance-beginning 1,013,102 683,209 683,209
Fund balance-ending $ 1,022,265 $ 692,372 $ 862,584 $ 170,212
The Notes to the Financial Statements,found in Basic Financial Section,are an integral part of this statement
26-Comprehensive Annual Financial Report(CAFR)
The Noes to the Pvandal Statements found in Basic Ftranaal S'dw,are an Nmgral part of ihs smerrent
Comprehensive Annual Financial Report(CAFR)-27
CITY OF Yakima
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
December 31,2018 Page 1 of 4
Business-Type Activities
Airport Stormwater Transit Refuse Wastewater
Assets
Current Assets
Cash and cash equivalents $ 96,790 $ 2,238,235 $ 2,435,247 $ 417,335 $ 6,526,233
Cash with fiscal agent 12,293
Investments 4,119,089 4,481,655 768,035 13,354,641
Receivables,net allowance for uncollectible accounts
Taxes 73,364 1,084,830
Accounts 54,714 357 25,133 733,487 2,308,599
Notes and contracts receivable 191,886
Due from other governments 726,076 2,627,170 217,365
Due from other funds
Inventories and prepayments
Total current assets 877,580 6,635,224 10,654,035 1,918,857 22,406,838
Noncurrent assets
Restricted cash 1,600,000
Capital assets not being depredated
Land 3,418,797 1,182,989 649,505
Construction in progress 11,775,006 7,988 179,817 3,997,866
Capital assets,net of accumulated depreciation
Buildings 261,671 2,003,807 17,451,900
Machinery,equipment&vehicles 1,314,581 5,594 5,220,424 8,577,859
Other improve&utility systems 4,410,493 2,525,374 876,921 43,895,426
Intangibles 716,028
Total noncurrent assets 21,896,576 2,538,956 9,463,958 76,172,556
Total assets 22,774,156 9,174,180 20,117,993 1,918,857 98,579,394
Deferred outflows of resources
Deferred amount on refunding 262,207
Deferred outflows related to pension 25,842 49,040 213,587 94,577 306,403
Total deferred outflows of resources 25,842 49,040 213,587 94,577 568,610
Total assets&deferred outflows 22,799,998 9,223,220 20,331,580 2,013,434 99,148,004
The Notes to the Financial Statements,found in Basic Financial Section,are an integral part of this statement
28-Comprehensive Annual Financial Report(CAFR)
CITY OF Yakima
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
December 31,2018 Page 2 of 4
Gov't
Business-Type Activities Activities
Internal
Service
Water Irrigation Total Funds
$ 2,747,246 $ 1,766,176 $ 16,227,263 $ 3,954,708
12,293
4,395,767 3,250,346 30,369,533 4,466,098
1,158,194
753,731 319,050 4,195,071 1,035,900
191,886 99,642
3,570,611 149,571
300,000
377,445 377,445 571,401
8,274,189 5,335,572 56,102,296 10,577,320
235,000 1,835,000
173,613 98,500 5,523,404
682,032 1,799,348 18,442,057
4,466,251 279,021 24,462,650 5,577
236,801 812 15,356,071 8,737,596
33,208,117 15,429,658 100345,989 435,114
164,659 880,686
39,166,473 17,607,339 166,845,857 9,178,287
47,440,662 22,942,911 222,948,153 19,755,607
262,207
166,053 44,697 900,198 166,962
166,053 44,697 1,162,405 166,962
47,606,715 22,987,608 224,110,558 19,922,569
The Notes to the Financial Statements,found in Basic Financial Section,are an integral part of this statement
Comprehensive Annual Financial Report(CAFR)-29
CITY OF Yakima
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
December 31,2018 Page 3 of 4
Business-Type Activities
Airport Stormwater Transit Refuse Wastewater
Liabilities
Current liabilities
Accounts payable 214,033 27,079 125,205 107,885 592,875
Retainage payable 19,386 5,051 212,526
Claims&judgments payable
Accrued salaries and benefits 77,533 91,890 357,042 144,668 447,270
Compensated absences 10,508 14,148 52,139 23,300 71,066
Custodial accounts 34,030 219,086 467,049
Due to other governments (91) 112 285 32,448
Other current liabilities 444 2,170
Interest payable 81,024
Debt principal due within one year 1,968,237
Other post-employment benefits-current 6,384 6,248 23,820 11,119 31,207
Total current liabilities 342,397 158,751 563,369 506,787 3,905,872
Noncurrent liabilities
Compensated absences 67,664 96,424 325,106 152,230 458,051
Pension Liability 259,170 307,245 1,225,464 568,376 1,659,810
Other postemployment benefits(OPEB) 99,500 141,071 597,880 270,022 861,209
Debt principal due more than one year 14,937,874
Total noncurrent liabilities 426,334 544,740 2,148,450 990,628 17,916,944
Total liabilities 768,731 703,491 2,711,819 1,497,415 21,822,816
Deferred inflows of resources
Deferred inflows related to pension 100,972 122,138 489,931 226,598 666,330
Deferred inflows related to OPEB 5,087 4,980 18,984 8,862 24,871
Total deferred inflows of resources 106,059 127,118 508,915 235,460 691,201
Total liabilities&deferred inflows 874,790 830,609 3,220,734 1,732,875 22,514,017
Net position
Net investment in capital assets 21,896,576 2,519,569 9,458,907 57,716,126
Restricted for:
Debt service 1,600,000
Unrestricted 28,632 5,873,043 7,651,939 280,558 17,317,860
Total net position $ 21,925,208 $ 8,392,612 $ 17,110,846 $ 280,558 $ 76,633,986
The Notes to the Financial Statements,found in Basic Financial Section,are an integral part of this statement
30-Comprehensive Annual Financial Report(CAFR)
CITY OF Yakima
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
December 31,2018 Page 4 of 4
Gov't
Business-Type Activities Activities
Internal
Service
Water Irrigation Total Funds
88,070 3,760 1,158,907 440,833
6,152 243,115
3,102,947
279,088 68,816 1,466,307 246,500
41,469 10,210 222,841 36,515
372,763 1,092,928 64,711
457 33,210 348
23,131 25,746
22,761 55,051 158,836
741,844 155,000 2,865,081
18,576 4,978 102,332 20,516
1,594,311 297,815 7,369,303 3,912,370
280,819 64,191 1,444,483 250,706
966,397 261,805 5,248,267 1,005,213
466,171 126,188 2,562,041 479,916
7,968,828 3,312,449 26,219,152
9,682,215 3,764,633 35,473,943 1,735,835
11,276,526 4,062,448 42,843,246 5,648,205
386,033 104,557 2,096,560 400,797
14,804 3,967 81,555 16,352
400,837 108,524 2,178,115 417,149
11,677,363 4,170,972 45,021,361 6,065,354
30,214,650 14,139,889 135,945,718 9,178,288
235,000 1,835,000
5,479,703 4,676,744 41,308,480 4,678,929
$ 35,929,353 $ 18,816,633 $ 179,089,198 $ 13,857,217
The Notes to the Financial Statements,found in Basic Financial Section,are an integral part of this statement
Comprehensive Annual Financial Report(CAFR)-31
CITY OF Yakima
STATEMENT OF REVENUES,EXPENSES AND CHANGES IN FUND NET POSITION
PROPRIETARY FUNDS
For the Year Ended December 31,2018 Page 1 of 2
Business-Type Activities
Airport Stormwater Transit Refuse Wastewater
Operating revenues
Charges and fees for services $ 517,436 $ 3,718,869 $ 951,601 $ 7,556,920 $ 22,243,485
Charges for insurance
Employer contributions
Employee contributions
Other operating revenue 963,399 139,577 4,694 11,283
Total operating revenues 1,480,835 3,718,869 1,091,178 7,561,614 22,254,768
Operating expenses
Personnel services 759,636 939,383 3,861,488 1,621,319 4,533,728
Materials and supplies 63,621 46,373 696,091 351,452 984,702
Contractual services 354,662 1548,226 3,354,099 4,128,387 10,743,643
Claims and other benefits
Depreciation 797,731 100,360 1,180,623 4,479,375
Total operating expense 1,975,650 2,634,342 9,092,301 6,101,158 20,741,448
Operating income(loss) (494,815) 1,084,527 (8,001,123) 1,460,456 1,513,320
Nonoperating revenues(expense)
Grants and subsidies 796,979 9,103,205 296,816
Interest revenue 589 8,046 1,925
Other nonoperating revenue 44,446
Interest&other debt service costs (368,269)
Gain(loss)disposal of capital assets 64,046 17,855
Total nonoperating revenue(exp) 861,614 9,173,552 (69,528)
Income(loss)before conts&transfers 366,799 1,084,527 1,172,429 1,460,456 1,443,792
Capital contributions 221,769 1,183,034
Transfers in 78,000 648,621
Transfers(out) (60,000) (795,000) (898,928)
Change in net position 444,799 1,246,296 1,172,429 665,456 2,376,519
Net position-beginning 21,531,757 7,196,578 16,130,018 (295,459) 74,508,484
Prior period adjustment due to GASB 75 (51,347) (50,261) (191,601) (89,438) (251,017)
Net position-ending $ 21,925,209 $ 8,392,613 $ 17,110,846 $ 280,559 $ 76,633,986
The Notes to the Financial Statements,found in Basic Financial Section,are an integral part of this statement
32-Comprehensive Annual Financial Report(CAFR)
CITY OF Yakima
STATEMENT OF REVENUES,EXPENSES AND CHANGES IN FUND NET POSITION
PROPRIETARY FUNDS
For the Year Ended December 31,2018 Page 2 of 2
Gov't
Business-Type Activities Activities
Internal
Service
Water Irrigation Total Funds
$ 10,015,158 $ 3,096,850 $ 48,100,318 $ 3,543,896
4,664,266
11,910,021
2,011,936
53,600 4,801 1,177,353 3,580
10,068,758 3,101,651 49,277,671 22,133,699
2,621,808 696,534 15,033,896 2,551,478
679,509 86,888 2,908,635 1,735,712
4,866,111 923,348 25,918,476 6,376,350
11,268,900
1,692,081 446,832 8,697,003 1,294,572
9,859,509 2,153,602 52,558,010 23,227,012
209,249 948,049 (3,280339) (1,093,313)
110,785 10,307,786 149,571
700 500 11,760 238,748
44,446 553,134
(71,426) (174,965) (614,660)
5,074 86,975 (27,253)
45,133 (174,465) 9,836,307 914,200
254,382 773,584 6,555,968 (179,113)
658,043 2,062,847
726,621 1,662,792
(176,021) (30,000) (1,959,949) (26,866)
736,404 743,584 7,385,487 1,456,813
35,342,367 18,113,088 172,526,832 12,565,424
(149,417) (40,037) (823,118) (165,018)
$ 35,929,354 $ 18,816,635 $ 179,089,201 $ 13,857,219
The Notes to the Financial Statements,found in Basic Financial Section,are an integral part of this statement
Comprehensive Annual Financial Report(CAFR)-33
CITY OF Yakima
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For the Year Ended December 31,2018 Page 1 of 4
Business-Type Activities
Airport Stormwater Transit Refuse Wastewater
Cash flows from operating activities
Receipts from customers $ (36,212) $ 3,695,865 $ 754,085 $ 7,453,483 $ 21,896,108
Contributions rec'd employer&employee
Payments to suppliers&service providers (306,983) (1,766,513) (4,067,957) (4,457,033) (11,265,781)
Payments to employees salaries&benefits (775,514) (967,798) (4,100,797) (1,754,008) (4,995,025)
Other Operating Revenues 963,399 139,577 4,694 11,283
Payments to claimants&beneficiaries
Net cash flows from operating activities (155,310) 961,554 (7,275,092) 1,247,136 5,646,585
Cash from noncapital financing activities
Sales tax received 6,170,802
Operating grants 2,932,403
Net cash from noncapital financing activities — — 9,103,205 — —
Cash flows from capital financing activities
Proceeds from disposal of property 64,046 17,855
Capital grants&contributions 796,979 1,256 1,171,736
Capital expenditures (3,702) (1,914,249)
Acquisition&coast of capital assets (1,285,030) (92,879) (200,524) (2,811,215)
Interest and related charges paid (408,714)
Other receipts — — 44,446 —Transfers in 78,000 32,621
Transfers(out) (60,000) (795,000) (282,929)
Net cash provided by(used for)financing (346,005) (155,325) (138,223) (795,000) (4,212,750)
Cash flows from investing activities
Proceeds from sale of investments 5,365,277 4,917,662 17,362,847
Interest on investments 589 8,046 1,925
Purchase of investments (4,119,089) (4,481,655) (768,035) (13,354,641)
Net cash provided by investing activities 589 1,246,188 444,053 (768,035) 4,010,131
Net increase(dec)in cash&cash equivalents (500,726) 2,052,417 2,133,943 (315,899) 5,443,966
Cash&cash equivalents-beginning 597,516 198,112 301,305 733,234 2,682,266
Cash&cash equivalents-ending $ 96,790 $ 2,250529 $ 2,435,248 $ 417,335 $ 8,126,232
The Notes to the Financial Statements,found in Basic Financial Section,are an integral part of this statement
34-Comprehensive Annual Financial Report(CAFR)
CITY OF Yakima
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For the Year Ended December 31,2018 Page 2 of 4
Gov't
Business-Type Activities Activities
Internal
Service
Water Irrigation Total Funds
$ 10,047,056 $ 3,036,339 $ 46,846,724 $ 8,492,660
13,878,271
(5,516,461) (1,005,696) (28,386,425) (7,748,252)
(2,808,857) (764,826) (16,166,825) (2,751,546)
53,600 4,801 1,177,354 3,580
(10,204,414)
1,775,338 1,270,618 3,470,828 1,670,299
6,170,802 698,846
2,932,403
9,103,205 698,846
5,073 86,974 261,660
594,993 2,564,964
(961,844) (155,000) (3,034,795) (6,706)
(440,582) (3,677) (4,833,906) (539,494)
(74,549) (169,278) (652,541)
44,446
110,621 1,662,792
(176,021) (30,000) (1343,950) (26,866)
(1,052,930) (357,955) (7,058,187) 1,351,386
5,777,445 3,866,462 37,289,693 2,616,253
700 500 11,760 238,748
(4,395,767) (3,250,346) (30,369,533) (4,466,098)
1,382,378 616,616 6,931,920 (1,611,097)
2,104,786 1,529,279 12,447,766 2,109,434
877,460 236,897 5,626,790 1,845,274
$ 2,982,246 $ 1,766,176 $ 18,074,556 $ 3,954,708
The Notes to the Financial Statements,found in Basic Financial Section,are an integral part of this statement
Comprehensive Annual Financial Report(CAFR)-35
CITY OF Yakima
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For the Year Ended December 31,2018 Page 3 of 4
Business-Type Activities
Airport Stormwater Transit Refuse Wastewater
Reconciliation-operating income(loss)to
net cash provided(used)for operations
Operating income(loss) $ (494,815) $ 1,084,526 $ (8,001,122) $ 1,460,455 $ 1,513,321
Adj to reconcile operating income(loss)
to net cash provided(used)for operations
Depreciation expense 797,731 100,360 1,180,623 4,479,375
Change in assets and liabilities
(Inc)dec in net accounts receivable (10,131) (23,002) 68,941 (103,437) (137,764)
(Inc)dec in due from other governments (543,518) (266,457) (217,365)
(Inc)dec in inventory
(Dec)inc in accounts payable 145,119 (175,220) (22,819) 22,806 344,194
(Dec)inc in accrued liabilities 884 7,526 7,752
(Dec)inc in wages/benefits payable 5,246 5,083 (5,774) 12,452
(Dec)inc in compensated absences 10,977 13,998 24,327 (10,627) (27,762)
(Dec)inc in contracts payable (33,742) 6,305 5,051 100,816
(Dec)inc in due to other governments (960) 32,055
(Dec)inc in interest payable (14,501)
(Dec)inc in pension/OPEB liability (32,101) (49,939) (268,719) (116,288) (445,987)
Total adjustments 339,505 (122,972) 726,030 (213,320) 4,133,265
Net cash prov(used)for operations $ (155,310) $ 961,554 $ (7,275,092) $ 1,247,135 $ 5,646,586
Schedule of noncash capital&related financing activities
Contribution of capital assets $ $ 220,513 $ $ 308,115
The Notes to the Financial Statements,found in Basic Financial Section,are an integral part of this statement
36-Comprehensive Annual Financial Report(CAFR)
CITY OF Yakima
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For the Year Ended December 31,2018 Page 4 of 4
Gov't
Business-Type Activities Activities
Internal
Service
Water Irrigation Total Funds
$ 209,249 $ 948,047 $ (3,280339) $ (28,830)
1,692,081 446,832 8,697,002 1,294,572
1,658 (60,510) (264,245) 240,812
(1,027,340)
15,120 15,120 (29,645)
52,946 6,607 370,633 393,459
16,162
18,889 (310) 35,587 (218,933)
3,060 (9,132) 4,842 18,864
(5,291) 73,139
344 (4) 31,435
(3,720) (2,063) (20,284)
(208,998) (58,850) (1,180,882)
1,566,089 322,570 6,751,169 1,699,129
$ 1,775,338 $ 1,270,617 $ 3,470,830 $ 1,670,299
$ 173,835 $ 702,463 $
The Notes to the Financial Statements,found in Basic Financial Section,are an integral part of this statement
Comprehensive Annual Financial Report(CAFR)-37
CITY OF Yakima
STATEMENT OF FIDUCIARY NET POSITION
FIDUCIARY FUNDS
December 31,2018 Page 1 of 1
Agency
Fund
YakCorps
Assets
Current Assets
Cash and cash equivalents $ 153,107
Receivables,net allowance for uncollectible accounts
Accounts 7,993
Total current assets 161,100
Liabilities
Current liabilities
Due to other governments 161,100
Total net position $ —
The Notes to the Financial Statements,found in Basic Financial Section,are an integral part of this statement
38-Comprehensive Annual Financial Report(CAFR)
Comprehensive Annual Financial Report(CAIA)-39
NOTES TO THE FINANCIAL STATEMENTS
Year ended December 31,2018
INDEX
NOTE 1 —SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 42
New Accounting Standard 42
Reporting Entity 42
Government-Wide and Fund Financial Statements 43
Measurement Focus,Basis of Accounting&Financial Statement Presentation 43
Assets,Liabilities,Deferred Outflows / Inflows,and Fund Balance /Net Position 45
NOTE 2—RECONCILIATION OF GOVERNMENT-WIDE&FUND FINANCIAL STATEMENTS 4S
Explanation of Certain Differences Between the Governmental Funds Balance Sheet and the
Government-Wide Statement of Net Position 48
Explanation of Certain Differences Between the Governmental Fund Statement of Revenues,
Expenditures,and Changes in Fund Balances and the Government-Wide Statement of Activities 49
NOTE 3—STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY 50
Budgets and Budgetary Accounting 50
Fund Equity 51
NOTE 4—DETAILED NOTES ON ALL ACTIVITIES AND FUNDS 52
Deposits and Investments 52
Property Taxes 54
Receivables 54
Interfund Receivables,Payables and Transfers 55
Capital Assets 56
Commitments 58
NOTE 5—PENSION PLANS 58
State Sponsored Pension Plans 59
Public Employees'Retirement System (PERS) 59
Public Safety Employees'Retirement System (PSERS) 61
Law Enforcement Officers' and Fire Fighters'Retirement System (LEOFF) 62
Volunteer Fire Fighters' and Reserve Officers'Relief and Pension Fund (VFFRPF) 68
Fire Pension 71
Police Pension 74
40-Comprehensive Annual Financial Report(CAFR)
NOTE 6—OTHER POSTEMPLOYMENT BENEFIT(OPEB)PLANS 76
Fire&Police OPEB 77
Non-LEOFF I OPEB 80
NOTE 7—SELF-INSURANCE 82
Unemployment Compensation 82
Medical&Dental Coverage 82
Workers Compensation 82
NOTE S—RISK MANAGEMENT 83
Property and Liability Insurance 83
NOTE 9—LONG-TERM LIABILITIES,DEBT AND CAPITAL LEASES 85
General Obligation Debt 86
Revenue Bonds 87
Intergovernmental Loans and Contractual Agreements 88
Lease Purchase Agreements 90
Unfunded Post Employment Benefit Liabilities 91
NOTE 10—CONTINGENCIES AND LITIGATIONS 91
Section 108 Loan Program 91
Potential Litigation 92
NOTE 11 —FUND BALANCE CLASSIFICATION 92
NOTE 12—SEGMENT INFORMATION 93
Water and Wastewater Utilities 93
NOTE 13—TAX ABATEMENTS 95
Programs 95
NOTE 14—OTHER DISCLOSURES 96
Related Parties 96
Comprehensive Annual Financial Report(CAFR)-41
NOTES TO THE FINANCIAL STATEMENTS
Year ended December 31,2018
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accounting policies of the City of Yakima,Washington,conform to Generally Accepted Accounting Principles
(GAAP) as applicable to governmental units. The City has adopted the pronouncements of the Governmental
Accounting Standards Board (GASB) the nationally-accepted standard setting body for establishing governmental
accounting and financial reporting principles. The following is a summary of the more significant policies. The
policies should be reviewed as an integral part of the financial statements and are presented to assist the reader in
interpreting the financial statements and other data in this report.
CHANGES IN ACCOUNTING PRINCIPLE
In 2015 the Governmental Accounting Standards Board issued Statement 75-Accounting and Financial Reporting for
Postemployment Benefits Other Than Pensions,effective for reporting years beginning after June 15,2017. This provision
was enacted to improve accounting and financial reporting by state and local governments for postemployment
benefits other than pensions (other postemployment benefits or OPEB). This change in accounting principle had a
material impact to the City of Yakima's Government-wide Financial Statements in 2018,which resulted in a direct
negative adjustment to the 2018 beginning net position of$31.3 million.
REPORTING ENTITY
The City of Yakima was incorporated in 1886 and operates under a Council/Manager form of government with a full-
time City Manager. The City of Yakima provides a full range of municipal services,which include:police,fire,
engineering,parks,cemetery,streets,code and parking enforcement,municipal court,economic development,and
administrative services. Included in the City's Enterprise Fund financial reports are:water treatment and
distribution,irrigation,sanitary wastewater,solid waste,stormwater,transit and airport. The Yakima Air Terminal,
was operated under a joint venture agreement with Yakima County,and became a City department in early 2013.
The City's financial statements include all funds,agencies and boards which are financially accountable to the City.
Financial accountability is manifest when the primary government appoints the majority of an organization's
governing body and is able to impose its will on that organization or there is a potential for the organization to
provide specific financial burdens on the primary government. The primary government may be financially
accountable if an organization is fiscally dependent on the primary government regardless of whether the
organization has a separately elected governing board,a governing board appointed by a higher level of government,
or a jointly appointed board. An organization is fiscally dependent if it is unable to determine its budget without
another government having the substantive authority to approve or modify the budget,to levy taxes or set rates or
charges without substantive approval by another government,or to issue bonded debt without substantive approval
by another government.
Although a separate legal entity,the City has elected to account for the operations of the Yakima Regional Public
Facilities District,as a blended component unit,in two Nonmajor Special Revenue Funds. The cities of Yakima,Selah
and Union Gap originally formed a Public Facilities District(PFD) for the purpose of expanding the Yakima
Convention Center and in 2008 added expansion of the Capitol Theatre. The City appoints a majority of the board
members and must approve the annual budget. The financial agreement stipulates that all revenue derived by the
PFD (primarily two separate state sales tax credits)be transferred to the City and the City will use these funds for the
applicable project debt service and operations,and reimbursement of administrative costs of the PFD.
Applying these criteria,the primary government statements consist of the legal entity of the City and the blended
component unit of the Yakima Regional Public Facilities District.
42-Comprehensive Annual Financial Report(CAFR)
Related Organizations—The City's officials are also responsible for appointing the members of the boards of another
organization,but the City's accountability for this organization does not extend beyond making the appointments.
The Yakima Housing Authority(YHA)was created by Resolution No.D-1575,in 1971,and,under certain conditions,
can be dissolved by the City. Yet,it is an independent entity with distinct governmental character and organization.
The City of Yakima created the Housing Authority per Washington State Revised Code Chapter 35.82 which provides
that liabilities incurred by the Housing Authority will be satisfied from its assets,and that no person shall have any
right of action against the City on account of its debts,obligations,and liabilities.
GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS
The government-wide financial statements consist of the statement of net position and the statement of activities.
These statements report information on all of the non-fiduciary activities of the primary government. For the most
part,the effect of interfund activity has been removed from these statements. Governmental activities,which
normally are supported by taxes and intergovernmental revenues,are reported separately from business-type
activities,which rely to a significant extent on fees and charges for support.
The statement of activities demonstrates the degree to which the direct expenses of a given function or segment is
offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment.
The City's policy is to allocate indirect costs to individual functions,if they are non-tax supported.
Program revenues include: 1) charges to customers or applicants who purchase,use,or directly benefit from goods,
services,or privileges provided by a given function or segment;2) fines and forfeitures;and 3) grants and
contributions that are restricted to meeting the operational or capital requirements of a particular function or segment.
Taxes and other items not properly included among program revenues are reported instead as general revenues.
Separate fund financial statements are provided for governmental funds,proprietary funds,and fiduciary funds,even
though the latter are excluded from the government-wide financial statements. Major individual governmental funds
and major individual enterprise funds are reported as separate columns in the fund financial statements.
MEASUREMENT FOCUS,BASIS OF ACCOUNTING &FINANCIAL STATEMENT PRESENTATION
Government Wide
The government-wide financial statements are reported using the economic resources measurement focus and the
accrual basis of accounting,as are the proprietary fund and fiduciary fund financial statements. Under this
measurement focus,revenues are recorded when earned and expenses are recorded when a liability is incurred,
regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they
are levied.
As a general rule the effect of interfund activity has been eliminated from the government-wide financial statements.
Exceptions to this general rule are charges between the City's utility functions and various other functions of the
government. Elimination of these charges would distort the direct costs and program revenues reported for the
various functions concerned.
Amounts reported as program revenues include: 1) charges to customers or applicants for goods,services,or
privileges provided;2) operating grants and contributions;and 3) capital grants and contributions,including special
assessments. Internally dedicated resources are reported as general revenues rather than as program revenues.
Likewise,general revenues include all taxes.
Fund Financial Statements
All governmental fund financial statements are reported using the"current financial resources"measurement focus
and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and
available. Revenues are considered to be available when they are collectible within the current period or soon enough
Comprehensive Annual Financial Report(CAFR)-43
thereafter to pay liabilities of the current period. For this purpose,the City considers revenues to be available if they
are collected within sixty days of the end of the current fiscal period. Expenditures generally are recorded when a
liability is incurred,as under accrual accounting. However,debt service expenditures,as well as expenditures related
to compensated absences and claims and judgments,are recorded only when payment is due.
Certain charges for service,sales based taxes,and interest associated within the current period are considered to be
susceptible to accrual and so have been recognized as revenues of the current fiscal period. Only the portion of
special assessment receivable due within the current fiscal period is considered to be susceptible to accrual as revenue
of the current period. Grants are considered measurable and available to the extent that expenditures have been
made. Other intergovernmental revenues are considered measurable and available when earned. Other revenues
such as state shared revenue,licenses,fines and fees are not considered susceptible to accrual since they are not
generally measurable until received. Expenditures are generally recognized when the related fund liability is
incurred,as under accrual accounting. All other revenue items are considered to be measurable and available only
when cash is received by the City.
The City of Yakima reports the following major governmental funds:
• The General Fund is the City's primary operating fund. It accounts for all financial resources of the general
government,except those required to be accounted for in another fund.
• The Neighborhood Development Fund accounts for grant programs supported by the Federal Housing and
Urban Development grants which are used to improve housing conditions for low income families and
seniors in Yakima.
The City reports the following enterprise funds as major funds:
• The Airport Fund is responsible for the operation,maintenance and any construction projects at the Airport
facility.
• The Stormwater Fund is responsible for the operations,maintenance and construction to the Stormwater
collection system. While not technically a major fund,because it is the only non-major Enterprise fund,it is
being reported with the major funds for continuity purposes.
• The Transit Fund accounts for the operation of the City Transit System,funded primarily by 0.3%sales tax,
federal grants and fares.
• The Refuse Fund accounts for the operation and maintenance of household and yard waste collection and
disposal for City residents.
• The Water and Wastewater Funds account for the provision of water treatment and distribution and
wastewater collection and treatment services to City residents and other outside utility agreements.
• The Irrigation Fund accounts for the operation,maintenance and reconstruction of the existing irrigation
system.
Additionally,the government reports the following fund types:
• Internal Service Funds account for fleet management services,liability insurance,employee benefit reserves,
and public works administration services provided to other departments or agencies of the government,or to
other governments,on a cost reimbursement basis.
• Fiduciary Funds are used to account for assets held by the City in a trustee capacity or as an agent for
individuals,private organizations,other governments,or other funds. Fiduciary funds use the economic
resources measurement focus and the accrual basis of accounting,with the exception of agency funds which
technically have no measurement focus,but do employ the accrual basis of accounting for purposes of asset
and liability recognition. These funds are excluded from the government-wide financial statements. In
accordance with GASB 73,the Firemen's Relief and Pension Fiduciary Fund is reported as part of the General
Fund.
44-Comprehensive Annual Financial Report(CAFR)
• Agency Funds account for assets held by the City as an agent for joint,intergovernmental operations through
interlocal agreements. Agency funds are custodial in nature (assets equal liabilities) and do not involve the
measurement of the results of operations. The City is the fiduciary agent for the fiscal activity of Yakima
Consortium for Regional Public Safety(YAKCORPS).
• Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating
revenues and expenses generally result from providing services and producing and delivering goods in
connection with proprietary funds' principal ongoing operations. The principal operating revenues of the
water,wastewater,refuse,stormwater and irrigation enterprise funds and of the government's internal
service funds are charges to customers for sales and services. Operating expenses for enterprise funds and
internal service funds include the cost of sales and services,administrative expenses,and depreciation on
capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues
and expenses.
When both restricted and unrestricted resources are available for use,it is the City's policy to use restricted resources
first,then unrestricted resources as they are needed.
ASSETS,LIABILITIES,DEFERRED OUTFLOWS/INFLOWS,AND FUND BALANCE/NET POSITION
Cash,Cash Equivalents and Investments
Cash is considered to be cash on hand and demand deposits. Cash equivalents are highly liquid investments with
maturities of three months or less from the date of acquisition. Included in this category are all funds held in the
Washington State Treasurer's Local Government Investment Pool (LGIP).
The LGIP is comparable to an SEC regulated Rule 2a-7 money market fund in which funds are limited to high quality
obligations with limited maximum and average maturities,the effect of which is to minimize both market and credit
risk.
The City invests funds that exceed operating and liquidity needs. The City is authorized by State law,Municipal
Code and the City's investment policy to place cash in:Washington State Treasurer's Local Government Investment
Pool (LGIP);U.S. Treasury and Agency securities;state and local government bonds;corporate notes purchased on
the secondary market;certificates of deposit issued by Washington State depositories that participate in a state
insurance pool managed by the Washington Public Deposit Protection Commission;investment deposits in a
qualified public depository located in the State of Washington;banker's acceptances trading in the secondary market;
and commercial paper. As further discussed in Note 4,the City reports investments at net book value.
Receivables
Taxes receivable consists of property and other taxes including related interest and penalties (see Note 4). Customer
accounts receivable consists of amounts due from private individuals or organizations for goods and services
incurred in the normal course of conducting business. Customer accounts receivable are reported net of estimated
uncollectible amounts in proprietary funds. Special assessments are recorded when levied. Special assessments
receivable consists of current and delinquent assessments. Accrued interest receivable consists of amounts earned on
investments,notes,and contracts as of year-end. Notes and contracts receivable consists of amounts owed on open
account from private individuals or organizations for goods and services rendered. The major component of the
notes receivable category is in the Neighborhood Development fund and represents a revolving home ownership
assistance program.
Amounts Due To and From Other Funds; Interfund Loans and Advances Receivable
These accounts include all interfund receivables and payables. A separate schedule of interfund loans receivable and
payable is furnished in Note 4.
Comprehensive Annual Financial Report(CAFR)-45
Amounts Due To and From Other Governments
These accounts include amounts due to or from other governments for grants,entitlements,temporary loans,taxes
and charges for services,except amounts billed for utility usage which is included in customer receivables.
Inventories
Inventories in the General Fund,Enterprise Funds and Internal Service Funds are valued at cost using the weighted
average method and consist of expendable supplies and vehicle repair parts. The cost of such inventories is recorded
as expenditures/expenses when consumed rather than when purchased.
Restricted Assets and Liabilities
These accounts contain resources for debt service reserve requirements and debt redemption in the enterprise funds.
Capital Assets
Capital assets,which include property,plant,equipment and infrastructure assets (i.e.,roads,bridges,sidewalks and
similar items) are reported in the applicable governmental or business-type columns in the government-wide
financial statements. Capital assets are defined by the City as assets with an initial,individual cost of more than
$5,000 and an estimated useful life of two years or more. Such assets are recorded at historical cost or estimated
historical cost if purchased or constructed. Donated capital assets are recorded at acquisition value at the date of
donation.
Infrastructure assets are long-lived assets that normally are stationary in nature and must be preserved perpetually,
using a combination of replacement and life-extending repair and maintenance. Examples of infrastructure include
roads,bridges,and lighting systems.
When capital assets are purchased,they are capitalized and depreciated in the government-wide financial statements
and the proprietary fund statements. Capital assets are recorded as expenditures of the current period in the
governmental fund financial statements.
The cost of normal maintenance and repairs that do not add to the value of the asset or do not materially extend
assets'lives are not capitalized.
Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred
during the construction phase of the capital assets of business-type activities is included as part of the capitalized
value of the assets constructed.
Property,plant,and equipment of the City are depreciated using the straight line method over the following
estimated useful lives:
Buildings 25-40 Years
Improvements other than buildings 7-50 Years
Utility plant 33-50 Years
Equipment 2-25 Years
Intangibles(organization costs and goodwill) 75-100 Years
Infrastructure 15-50 Years
Deferred Outflow of Resources
Deferred outflow of resources is the consumption of net position that is applicable to a future reporting period. A
deferred outflow of resources involved no consumption of resources that results in either a net decrease in assets or a
net increase in liabilities. It also represents access to present service capability that is under the government's
controls. Other than outflows related to pensions (discussed in the next paragraph),the City of Yakima has only one
other item that qualifies in this category,which is the deferred amount on refunding reported in the government-wide
Statement of Net Position. A deferred charge on refunding results from the difference in the carrying value of
46-Comprehensive Annual Financial Report(CAFR)
refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the
refunded or refunding debt.
Pensions
For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources
related to pensions, and pension expense, information about the fiduciary net position of all state sponsored pension
plans and additions to/deductions from those plans'fiduciary net position have been determined on the same basis as
they are reported by the Washington State Department of Retirement Systems. For this purpose, benefit payments
(Including refunds of employee contributions) are recognized when due and payable in accordance with the benefit
terms. Investments are reported at fair value.
Current Liabilities
Liabilities include primarily salaries and benefits payable and claims and judgments payable in the Internal Service
Funds,current portion due on long-term debt and other liabilities due.
Noncurrent Liabilities
Noncurrent liabilities include long-term debt,compensated absences,cumulative unfinanced liability related to post-
employment benefits and pension liabilities as prescribed by GASB 68,73,and 75.
Long-Term Obligations—In the government-wide financial statements,and proprietary fund types in the fund
financial statements,long-term obligations are reported as liabilities in the applicable governmental activities,
business-type activities,or proprietary fund type statement of net position. Bond premiums and discounts are
deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are reported net
of the applicable bond premium or discount.
Compensated Absences—Contracts with employees call for the accumulation of vacation and sick leave. At
termination of employment,employees may receive cash payment for all accumulated vacation up to a certain
number of hours and a percentage of sick leave,depending on employee group. The payment is based on current
wage at termination.
The amounts of unpaid vacation and sick leave accumulated by City employees are accrued as expenses when
incurred in proprietary funds in the government wide Statement of Activities,which use the accrual basis of
accounting. In the governmental funds,only the amounts that normally would be liquidated with expendable
available financial resources are accrued as current year expenditures. The City uses the last-in,first-out method of
recognizing the hours used of compensated absences. Employees are charged for the last day of vacation or sick leave
earned when the leave is used. Thus,unless it is anticipated that compensated absences will be used in excess of a
normal year's accumulation,no additional expenditures are accrued. Therefore,the entire unpaid liability for the
governmental funds is a reconciling item between the fund and government-wide presentations.
Deferred Inflow of Resources
Deferred inflow of resources is the acquisition of net position that is applicable to a future reporting period. A
deferred inflow of resources involved no acquisition of resources resulting in either a net increase in assets or a net
decrease in liabilities. It represents a present obligation to sacrifice resources that the government has little or no
discretion to avoid. The City has two types of items,deferred inflows related to pension,and OPEB,that qualify for
reporting in this category,which is reported in the governmental activities on the Statement of Net Position. The
governmental funds report unavailable revenues from two sources,taxes receivable and notes receivable. These
amounts are deferred and recognized as an inflow of resources in the period that the amounts become available.
Net Positions and Fund Balances
Net position is segregated into three categories on the government-wide statement of net position: 1) net investment
in capital assets;2) restricted;and 3) unrestricted. The flow assumption of the city is to use restricted assets before
unrestricted assets when permitted by the resolution.Restricted assets are usually set aside in a separate fund,
specifically used for the purpose of debt service or capital replacement.
Comprehensive Annual Financial Report(CAFR)-47
The City's fund balances are classified in accordance with Governmental Accounting Standards Board Statement
Number 54(GASB 54),Fund Balance Reporting and Governmental Fund Type Definitions,which require the City to
classify its fund balances based on spending constraints imposed on the use of resources.
Nonspendable—Represents balances set aside to indicate items that do not represent available,spendable resources
even though they are a component of assets. Fund balances are required to be maintained intact and include
permanent funds and assets not expected to be converted to cash,such as inventories,and notes receivable.
Restricted—Are funds that have external restrictions imposed by creditors,grantors,contributors,laws,regulations,
or enabling legislation which require the resources to be used only for a specific purpose.
Committed—These funds have constraints imposed by formal action(resolution or ordinance) of the City Council
which may be altered only by a similar formal action of the City Council.
Assigned—Funds in this category are amounts constrained by the City to be used for a specific purpose,but are
neither restricted nor committed and may be changed.
Unassigned—This represents the residual amounts that have not been restricted,committed,or assigned.
NOTE 2 —RECONCILIATION OF GOVERNMENT-WIDE &FUND FINANCIAL STATEMENTS
EXPLANATION OF CERTAIN DIFFERENCES BETWEEN THE GOVERNMENTAL FUNDS BALANCE SHEET
AND THE GOVERNMENT-WIDE STATEMENT OF NET POSITION
The governmental fund balance sheet includes reconciliation between fund balance—total government funds and net
position—governmental activities as reported in the government-wide statement of net position. One element of that
reconciliation explains that"capital assets used in governmental activities are not financial resources and,therefore,
are not reported in the funds." These details of this difference are as follows:
Land $ 17,884343
Construction in progress 17,163,662
Buildings 57,571,868
Less:Accumulated depreciation-buildings (27,735,667)
Machinery,equipment and vehides 26,422,718
Less:Accumulated depreciation-machinery,equipment and vehides (18,817,030)
Infrastructure 297,338,729
Less:Accmnulated depreciation-infrastructure (200,238,662)
Other improvements 19,217,238
Less:Accmnulated depredation-other improvements (12,516,387)
Net adjustment to increase total fund balances-total government funds to
arrive at net position-governmental activities $ 176,290,812
Another element of that reconciliation explains"long-term liabilities,including bonds payable,are not due and
payable in the current period and therefore are not reported in the funds." The details of this difference are as
follows:
48-Comprehensive Annual Financial Report(CAFR)
Bonds payable $ (34,379,606)
Add:Issuance premium(to be amortized over the life of the debt) (1,185,778)
Intergovernmental loans (5,836,380)
Lease purchase agreements (3,191,549)
Compensated absences (8,346,276)
Subtotal (52,939,589)
Accrued interest payable (217,604)
Net adjustment to reduce total fund balances-total government funds to
arrive at net position-governmental activities $ (53,157,193)
The effect of long-term pension assets,liabilities and deferred inflows and outflows of resources as well as liabilities
for Other Postemployment Benefits do not impact current economic resources and are therefore not reported in the
funds. Details of this difference are as follows:
Pension asset $ 19,190,375
Net pension liability (18,985,786)
Deferred outflow change in proportionate share 3,245,236
Deferred inflow change in proportionate share (9,085,759)
Other postemployment benefit obligation (47,775,897)
Net adjustment to reduce total fund balances-total government funds to
arrive at net position-governmental activities $ (53,411,831)
EXPLANATION OF CERTAIN DIFFERENCES BETWEEN THE GOVERNMENTAL FUND STATEMENT OF
REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCES AND THE GOVERNMENT-WIDE
STATEMENT OF ACTIVITIES
The governmental fund statement of revenues,expenditures,and changes in fund balances includes reconciliation
between net changes in fund balances—total governmental funds and changes in net position of governmental
activities as reported in the government-wide statement of activities. One element of that reconciliation explains that
"governmental funds report capital outlays as expenditures. However,in the statement of activities the cost of those
assets is allocated over their estimated useful lives and reported as depreciation expense." This is the amount by
which depreciation expense exceeded capital outlays in the current period. The details of this difference are as
follows:
Capital outlay $ 6,747,086
Depredation expense (12,134,895)
Net adjustment to decrease net changes in fund balances-total government
funds to arrive at changes in net position of governmental activities $ (5,387,809)
Another element of that reconciliation states that"in the statement of activities,only the gain on the sale of fund
assets is reported,whereas in the governmental funds,the proceeds from the sale increase financial resources. Thus,
the change in net position differs from the change in fund balance by the cost of the fund assets. This also includes
donations of capital assets and infrastructure obtained by annexation." The details of this difference are as follows:
Comprehensive Annual Financial Report(CAFR)-49
In the statement of activities,only loss on the sale of capital assets is reported.
However,in the governmental funds,the proceeds from the sale increase
financial resources. Thus,the change in net position differs from the change
in the fund balance by the cost of the capital assets sold. $ (1,218,100)
Donations of capital assets increase net position in the statement of activities,
but do not appear in the governmental funds because they are not financial
resources. 1,018,697
Net adjustment to increase total government funds to arrive at changes in net
position of governmental activities $ (199,403)
Another element of that reconciliation states that"the issuance of long-term debt(e.g.,bonds,leases) provides current
financial resources to governmental funds,while the repayment of the principal of long-term debt consumes the
current financial resources of governmental funds. Neither transaction,however,has any effect on net position. Also,
governmental funds report the effect of premiums,discounts and similar items when debt is first issued,whereas
these amounts are deferred and amortized in the statements of activities. This amount is the net effect of these
differences in the treatment of long-term debt and related items". The details of this difference are as follows:
Debt issued
Issuance of general obligation bonds $ (16,450,000)
Principal repayments
General obligation debt 11,042,868
Intergovernmental loans 382,991
Lease purchase agreements 1,042,074
Interest accrued 148,761
Net adjustment to increase net changes in fund balances-total government
funds to arrive at changes in net position of governmental activities $ (3,833,306)
NOTE 3 - STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
BUDGETS AND BUDGETARY ACCOUNTING
Scope of Budget
The City Council annually approves the City's operating budget. The operating budget is designed to allocate
annually available resources among the City's services and programs and to provide for associated financing
decisions.
Annual appropriated budgets are adopted on the modified accrual basis of accounting. For governmental funds,
there are no differences between budgetary basis and generally accepted accounting principles. Budgetary accounts
are integrated in fund ledgers for all budgeted funds,but the financial statements include budgetary comparisons for
the General Fund and for the Neighborhood Development Fund,which is considered a Special Revenue fund.
Budgets for special revenue funds are required to be prepared,but not required to be reported individually in this
report. Budgets for debt service and capital projects are adopted at the level of the individual debt issue or project
and for fiscal periods that correspond to the lines of debt issues or projects. Budgets for proprietary funds,although
not legally required,are prepared for operational oversight. Budgetary comparisons for all funds not presented in
this report are available at www.yakimawa.gov/finance.
50-Comprehensive Annual Financial Report(CAFR)
Annual appropriated budgets are adopted at the fund level. Subsidiary revenue and expenditure ledgers are used to
compare the budgeted amounts with actual revenues and expenditures. As a management control device,the
subsidiary ledgers monitor expenditures for individual functions and activities by object class.
Appropriations for general and special revenue funds lapse at year end.
Procedures for Adopting the Original Budget
The City's budget procedures are mandated by Washington State Law. The steps in the budget process are as follows:
• Prior to November 15,the City Manager submits a proposed budget to the City Council. This budget is based
on priorities established by the Council and estimates provided by City departments during the preceding
months and balanced with revenue estimates.
• The Council conducts two public hearings on the proposed budget in November/December to obtain
taxpayer comments.
• During December,the budget is legally enacted through passage of an ordinance.
Amending the Budget
The City Manager is authorized to transfer budgeted appropriations between departments within any fund;however,
any revisions that alter the total expenditures of a fund,or that affect the number of permanently authorized
employee positions,salary ranges,or other conditions of employment must be approved by the City Council.
When the City Council determines that it is in the best interest of the City to increase or decrease the appropriation for
a particular fund,it may do so by an ordinance approved by a one more than simple majority of those council
members present after holding two public hearings.
The budget amounts shown in the financial statement represent the original adopted budget and all supplemental
appropriations. City-wide,supplemental appropriations totaled$18.9 million. The principal amendments were
adjustments to Community Development/ONDS in the amount of$1.6 million due to programmatic nature of the
budget and differences in the reporting time frame for Federal programs,nonlapsing and new appropriations of
various construction projects in the amount of$11.8 million,and refunding debt payoff of$3.5 million.
General Fund spent less than its$64.5 million final budget by$866,672 due to monthly and quarterly monitoring and
reporting of actual expenditures to budget on a departmental basis.
Encumbrances
Encumbrance accounting,under which purchase orders,contracts,and other commitments for the expenditure of
funds are recorded in order to reserve that portion of the applicable appropriation,is employed as an extension of
formal budgetary integration in all funds. Encumbrances are reported as reservations of fund balances since they do
not constitute expenditures or liabilities. The City reappropriates outstanding encumbrances in the subsequent year
as a budget amendment to the original budget.
FUND EQUITY
Nonspendable Fund Balance in Permanent Funds
The fund balance of$684,396 in the Cemetery Trust Fund represents a portion of the amounts paid for cemetery plots.
Provisions of these sales require$120 of the sales price be held in trust and that the income on the investment of these
amounts be used to maintain the plots.
Fiduciary Fund Net Position
The Firemen's Relief and Pension Fund has Net Position held in Trust for Pension Benefits and other purposes of
$1,437,988 which represents the net accumulated contributions made by the government through property taxes plus
interest earnings and state fire insurance premium tax proceeds. As a requirement of GASB 73,which was
implemented in 2016,this fund is now being reported as a part of the General Fund balance. It will continue to be
treated as a separate fund for budgetary purposes.
Comprehensive Annual Financial Report(CAFR)-51
Deficit Fund Balance
• The CBD Capital Improvement fund shows a deficit fund balance of($532,523). At the end of 2018,voters
rejected a referendum-City Council-requested citizen input for a central plaza capital project that had
already incurred design costs. Just over$1.7 million in donations were therefore refunded;City Council will
be considering a 2019 interfund transfer to eliminate this deficit fund balance.
• The Workers' Compensation fund has a deficit fund balance of($558,231) due to claims exceeding reserves. A
rate increase for the city-paid allocation across all applicable funds is being implemented in 2019 to support
the costs of ongoing claims. A transfer from General Fund of$380,000 is also budgeted in 2019 to help restore
fund balance.
NOTE 4-DETAILED NOTES ON ALL ACTIVITIES AND FUNDS
DEPOSITS AND INVESTMENTS
Deposits
The City of Yakima maintains deposit relationships with qualified Washington State depositories which are public
depositories authorized by the Public Deposit Protection Commission of the State of Washington(PDPC).
Collateralization of all deposits above Federal Depository Insurance Corporation(FDIC) insured amounts are in
accordance with State statute(RCW 39.58) and PDPC regulations. The PDPC provides protection by maintaining
strict standards as to the amount of public deposits financial institutions can accept,and by monitoring the financial
condition of all public depositories and optimizing collateralization requirements.
The City of Yakima had the following cash on hand and deposit balances on December 31,2018:
Banks and savings and loan institutions $ 8,980,856
Cash with fiscal agent 232,600
Petty cash and other imprest funds 14,527
Local Government Investment Pool(LGIP) 32,751,940
Subtotal 41,979,923
Agency fund 153,107
Total $ 42,133,030
Custodial Credit Risk:Deposits—The custodial credit risk for deposits is the risk that,in the event of a depository
financial institution failure,the City's deposits over FDIC-insured amounts may not be recovered. Because of PDPC
regulatory oversight,the risk to City's deposits is reduced.
The City of Yakima is a participant in the Local Government Investment Pool (LGIP),managed and operated by the
Washington State Treasurer,as authorized by Chapter 294,Laws of 1986. The State Finance committee is the
administrator of the statute that created the pool and adopts rules. The State Treasurer is responsible for establishing
the investment policy for the pool and reviews the policy annually and proposed changes are reviewed by LGIP
advisory committee.
Investments in the LGIP,a qualified external investment pool,are reported at amortized cost which approximates fair
value. The LGIP is an unrated external investment pool. The LGIP portfolio is invested in a manner that meets the
maturity,quality,diversification and liquidity requirements set forth by GASB 79 for external investment pools that
elect to measure,for financial reporting purposes,investments at amortized cost. The LGIP does not have any legally
52-Comprehensive Annual Financial Report(CAFR)
binding guarantees of share values. The LGIP does not impose liquidity fees or redemption gates on participant
withdrawals.
The LGIP is comparable to a Rule 2a-7 money market fund recognized by the Securities and Exchange Commission
(SEC). Rule 2a-7 funds are limited to high quality obligations with limited maximum and average maturities,the
effect of which is to minimize both market and credit risk.
The Office of the State Treasurer prepares a stand-alone financial report. A copy of the LGIP report is available online
at http://www.tre.wa.gov or from the Office of the State Treasurer,PO Box 40200,Olympia,Washington 98504-0200.
Foreign Currency Risk:Deposits—Foreign currency risk is the risk that changes in exchange rates will adversely affect
the fair value of an investment or a deposit. The City of Yakima has no deposits or investments that are exposed to
this type of risk.
Investments
Cash and investments are managed in accordance with the City's Investment Policy (Resolution R2011-134). The
policy applies to all financial assets of the City of Yakima(excluding the Firemen's Relief and Pension Fund).
As of December 31,2018,the City of Yakima had the following investments:
INVESTMENT PORTFOLIO
Weighted Weighted
Average Average
Maturity to Expected
Carrying Fair Expected Maturity
Investment Types Value Value Call(Days) (Days) Rating
Federal agency securities $ 51,170,881 $ 50,521,891 814 814 n/a
Carrying Value
Investments are reported at Net Book Value on the Financial Statements. Investments are not actively traded,but
rather are held until maturity unless called by the issuer prior to the maturity date. Securities may be sold before they
mature if market conditions present an opportunity for the City to capture a benefit or to avoid a risk but otherwise
the City adheres to a buy-and-hold strategy. Premiums or Discounts realized at purchase are amortized over the life
of the investment so that Net Book Value is fully realized at maturity. Fair value reflects the market price on a given
date. Changes in fair value create unrealized gains and losses which are not realized due to the City's policy of
holding investments until maturity.
Interest Rate Risk
In accordance with its adopted investment policy,the City manages its exposure to declines in fair value due to rising
interest rates by limiting the weighted average maturity of its cash and security portfolio as a whole. The City does
not purchase derivatives,pass-through obligations or other interest rate sensitive instruments in its portfolio.
Weighted average maturity on callable securities is calculated using both the expected call date and the final maturity
date.
Credit Risk
State statutes(RCW sections 35.39 and 39.59),limit investments that a Washington Class 1 City may hold to:
(1)Direct and Indirect obligations of the US Government; (2) Bonds of Washington State or local government within
the State; (3) General Obligation bonds of another State or local government,which at the time of investment have
one of the three highest credit ratings of a nationally-recognized rating agency; (4) Corporate Notes purchased on the
secondary market with a minimum credit quality rating of upper medium investment grade-at least A by Standard
and Poors,A2 by Moody's,or A by Fitch-on the date of purchase; (5) Bankers Acceptances and high quality
Comprehensive Annual Financial Report(CAFR)-53
Commercial Paper as long as they hold one of the 2 highest Credit ratings issued by at least two nationally recognized
rating agencies; (6)non-negotiable Certificates of Deposit with financial institutions qualified by the Washington
PDPC;and (7) the State Treasurer's LGIP. The LGIP is a 2a7 like pool,and investments in the pool are reported at the
share price of 100%of dollars invested. The City's adopted Investment Policy adheres to State Statutes.
Custodial Credit Risk
The City's investment Policy does not include Repurchase,Reverse—Repurchase agreements or securities lending as
allowable investment activity;therefore no custodial credit risk exists. All investments are held in the City's name by
a third party custodian through a Trust Agreement,with the exception of the LGIP and LID Notes.
PROPERTY TAXES
The County Treasurer acts as an agent to collect property taxes levied within the county for all taxing authorities.
Collections are distributed after the end of each month,on the tenth day of the following month.
PROPERTY TAX CALENDAR
January 1 Taxes are levied and become an enforceable lien against properties.
February 14 Tax bills are mailed.
April 30 First of two equal installment payments is due.
May 31 Assessed value of property is established for next year's levy at 100%of market value.
October 31 Second installment payment is due.
During the year,property tax revenues are recognized when cash is collected. At year-end,property tax revenues are
recognized for collections in the hands of the County Treasurer at December 31st. No allowance for uncollectible
taxes is established because delinquent taxes are considered fully collectible. Delinquent taxes are reported as
unearned in the governmental funds and as part of the net position in the government wide funds.
The City is permitted by law to levy up to$3.60 per$1,000 of assessed valuation for general government services,less
a maximum levy of$0.50 per$1,000 for the Library District. This amount may be reduced for either of the following
reasons:
• The Washington State Constitution limits total regular property tax levies to one-percent of assessed valuation
or$10 per$1,000 of value. If the tax levies of all districts exceed this amount,each is proportionately reduced
until the total is at or below the one percent limit.
• Washington State law,RCW 84.55.010,limits the total dollar amount of regular property taxes that may be
levied annually to 101%of the highest levy in the three previous years(excluding new construction,
annexations and state assessed property).
Special levies approved by the voters are not subject to the above limitations.
For 2018,the City's regular tax levy was$2.9942 per$1,000 on a total assessed valuation of$6.2 billion,for a total
regular levy of$18,686,841. Included in the City's regular levy is an authorization to levy for the Firemen's Relief and
Pension Fund. This levy is subject to the same limitations as the levy for general government services. The Firemen's
Relief and Pension portion of the regular tax levy for 2018 was$.2250 per$1,000,or$1,136,924.
RECEIVABLES
Receivables as of year-end for the City's individual major funds,nonmajor,internal service and agency funds in the
aggregate are included in the statements.
Accounts receivable balances of the Enterprise funds are reported net of allowances for uncollectible accounts.
Historically,write-offs in the utility funds have been about 1%of billed charges. Estimated uncollectible balances are
as follows:
54-Comprehensive Annual Financial Report(CAFR)
ALLOWANCE FOR UNCOLLECTIBLE ACCOUNTS RECEIVABLE—ENTERPRISE FUNDS
Refuse $ 272,346
Wastewater 600,597
Water 367,032
Irrigation 63,115
Irrigation Capital 31,087
Total $ 1,334,177
INTERFUND RECEIVABLES,PAYABLES AND TRANSFERS
Interfund Receivables and Payables
Under the City's Interfund Loan program established in Chapter 3.123 of the City of Yakima Municipal code,loans
between funds are authorized in order to fund short term working capital requirements of funds that may be in a
negative cash position. Generally,such needs are due to timing differences between a fund's regular receipts of
revenue and ordinary operating expenditures or expenses. Such loans that extend beyond one calendar quarter are
subject to interest at published rates.
Interfund balances are eliminated on the government-wide financial statement. Interfund balances were as follows at
year end:
INTERFUND BALANCES
Receivable Fund Payable Fund Amount
Equipment Rental Public Safety Dispatch $ 300,000
REET 2 Yakima Revenue Dev Area 200,000
Total $ 500,000
Interfund Transfers
Interfund transfers represent subsidies and contributions provided to other funds with no corresponding debt or
promise to repay. General Fund transfers are primarily used to: 1) allocate the portion of utility taxes that are
designated to support Parks and Recreation and Law and Justice Capital programs;and 2) support the Public Safety
dispatch operation with a portion of the telephone tax. Other transfers generally represent debt service and capital
project funding.
The Equipment Rental Fund operates as an Internal Service Fund to support City motorized vehicle operations and as
such"owns" most City vehicles other than Police or Fire vehicles. The fund administers a Vehicle Replacement
program whereby participating funds make periodic deposits to the Vehicle Replacement Reserve for future
purchases. These deposits are treated as transfers from the participating fund to Equipment Rental's Reserve. The
Equipment Rental Fund also operates a maintenance and repair shop to service City vehicles (excluding Fire vehicles
which are maintained by the Fire Department and Police vehicles which are serviced by an external vendor). By
definition an Internal Service fund should not build an excessive fund balance. Their services should be rendered at
approximate cost.
The following chart depicts interfund transfer activity during 2018:
Comprehensive Annual Financial Report(CAFR)-55
INTERFUND TRANSFERS
Transfer In
Other Internal
Transfer out Gen Gov't Airport Wastewater Service Total
General Fund $ 2,045,575 $ 40,000 $ $ 21,480 $ 2,107,055
Other Gen Gov't 2,171,214 38,000 387,565 2,596,779
Refuse 795,000 795,000
Wastewater 84,448 616,000 198,481 898,929
Water 32,621 143,400 176,021
Irrigation 30,000 30,000
Other Enterprise 60,000 60,000
Internal Service 26,866 26,866
Total $ 4,301,237 $ 78,000 $ 648,621 $ 1,662,792 $ 6,690,650
CAPITAL ASSETS
CAPITAL ASSET ACTIVITY
Balance Balance
1/1/2018 Additions Adjustments Deletions 12/31/2018
Governmental activities
Capital assets-not being depredated
Land $ 17,884,343 $ $ $ $ 17,884,343
Construction in progress 12,190,544 6,014,341 (563,313) (477,910) 17,163,662
Total capital assets not being depredated 30,074,887 6,014,341 (563,313) (477,910) 35,048,005
Capital assets being depredated
Buildings 57,571,868 57,571,868
Other improvements 18,543,979 109,945 563,313 19,217,237
Machinery,equipment and vehicles 26,065,334 622,798 (265,414) 26,422,718
Infrastructure 297,049,072 1,018,697 (729,042) 297,338,727
Total capital assets being depredated 399,230,253 1,751,440 563,313 (994,456) 400,550,550
Less accumulated depredation
Buildings (26,453,072) (1,282,595) (27,735,667)
Other improvements (11,485,475) (1,030,912) (12,516,387)
Machinery,equipment and vehicles (17,278,589) (1,792,707) 254,266 (18,817,030)
Infrastructure (192,209,982) (8,028,679) (200,238,661)
Total accumulated depredation (247,427,118) (12,134,893) 254,266 (259,307,745)
Total capital assets being depredated-net 151,803,135 (10,383,453) 563,313 (740,190) 141,242,805
Governmental activities capital assets-net 181,878,022 (4,369,112) (1,218,100) 176,290,810
56-Comprehensive Annual Financial Report(CAFR)
CAPITAL ASSET ACTIVITY
Balance Balance
1/1/2018 Additions Adjustments Deletions 12/31/2018
Internal service funds-gov't activities
Capital assets being depredated
Buildings 37,397 37,397
Other improvements 649,059 10,209 659,268
Machinery,equipment and vehicles 25,032,025 535,991 (1,203,750) 24,364,266
Total capital assets being depredated 25,718,481 546,200 (1,203,750) 25,060,931
Less accmnulated depredation
Buildings (31,211) (609) (31,820)
Other improvements (188,411) (35,744) (224,155)
Machinery,equipment and vehicles (15,287,148) (1,258,219) 918,697 (15,626,670)
Total accumulated depredation (15,506,770) (1,294,572) 918,697 (15,882,645)
Total internal service capital assets being depr-net 10,211,711 (748,372) (285,053) 9,178,286
Total governmental activities $ 192,089,733 $ (5,117,484) $ $ (1,503,153) $ 185,469,096
Business-type activities
Capital assets-not being depredated
Land $ 5,523,405 $ $ $ $ 5,523,405
Construction in progress 21,603,947 3,703,957 (6,865,846) 18,442,058
Total capital assets not being depredated 27,127,352 3,703,957 (6,865,846) 23,965,463
Capital assets being depredated
Buildings 88,362,671 88,362,671
Other improvements 175,170,675 990,242 6,865,846 183,026,763
Machinery,equipment and vehicles 39,383,745 845,872 (56,504) 40,173,113
Intangibles 2,190,139 2,190,139
Total capital assets-depredated 305,107,230 1,836,114 6,865,846 (56,504) 313,752,686
Less accmnulated depredation
Buildings (62,208,924) (1,691,097) (63,900,021)
Other improvements (77,995,977) (4,684,796) (82,680,773)
Machinery,equipment and vehicles (22,653,911) (2,219,638) 56,504 (24,817,045)
Intangibles (1,207,980) (101,471) (1,309,451)
Total accumulated depredation (164,066,792) (8,697,002) 56,504 (172,707,290)
Total capital assets being depredated-net 141,040,438 (6,860,888) 6,865,846 141,045,396
Total capital assets-business activities $ 168,167,790 $ (3,156,931) $ $ $ 165,010,859
NOTE-The adjustment column represents construction works in progress that were completed and either classified
into the appropriate capital asset category,or expensed. Assets transferred between fund categories are also included
as an adjustment. Depreciation expense was charged to functions/programs as follows:
Comprehensive Annual Financial Report(CAFR)-57
DEPRECIATION EXPENSE
Function/Program Amount
General government $ 270,243
Public safety 1,426,907
Transportation 8,264,773
Economic environment 615,008
Cultural and recreational 1,557,964
Capital Assets held by the City's internal service funds are charged
to the various functions based on their usage of the assets 1,294,573
Total depredation-governmental activities $ 13,429,468
Transit $ 1,180,623
Wastewater 4,479,375
Water 1,692,081
Irrigation 446,832
Stonnwater 100,360
Airport 797,731
Total depredation-business-type activities $ 8,697,002
COMMITMENTS
Construction Commitments
The City had active construction projects as of December 31,2018.
The Wastewater project that is active at the end of of the year is the Beech Street Lift Station Phase 2. Wastewater
project improvements are partially financed by State Public Works Trust fund rates and fees.
Street projects include upgrades to existing streets and sidewalks in the City. Also,design work is still in the process
for the East/West Corridor,which will provide a connection for north Yakima with Terrace Heights. Design work
continues on the north/south access for the former Boise Cascade Saw Mill,with construction scheduled to start in
2019. Street construction projects are financed by Federal and State loans,SIED grants/loans,TBD,and local funds.
The City continues with the construction of the aquatic center. The Aquatic Center construction is paid for by bonds
of$8.0 million.
CURRENT CONSTRUCTION COMMITMENTS
Contract Spent to Remaining
Project Amount Date Commitment
Wastewater Treatment Plant and Mains $ 4,290,708 $ 3,215,914 $ 1,074,794
Street Construction 4,762,039 3,312,703 1,449,336
Parks 8,000,000 3,826,453 4,173,547
Total $ 17,052,747 $ 10,355,070 $ 6,697,677
58-Comprehensive Annual Financial Report(CAFR)
NOTE 5-PENSION PLANS
The following table represents the aggregate pension amounts for all plans for the year 2018:
AGGREGATE PENSION AMOUNTS -ALL STATE SPONSORED PLANS
Pension liabilities $ 15,025,575
Pension assets (19,190,375)
Deferred outflows of resources 4,312,401
Deferred inflows of resources 11,367,603
Pension expense/expenditures (929,587)
STATE SPONSORED PENSION PLANS
Substantially all Yakima full-time and qualifying part-time employees participate in one of the following statewide
retirement systems administered by the Washington State Department of Retirement Systems,under cost-sharing,
multiple-employer public employee defined benefit and defined contribution retirement plans. The state Legislature
establishes,and amends,laws pertaining to the creation and administration of all public retirement systems.
The Department of Retirement Systems(DRS),a department within the primary government of the State of Washington,
issues a publicly available comprehensive annual financial report(CAFR)that includes financial statements and required
supplementary information for each plan. The DRS CAFR may be obtained by writing to:
Department of Retirement Systems
Communications Unit
P.O. Box 48380
Olympia,WA 98540-8380
Or the DRS CAFR may be downloaded from the DRS website at www.drs.wa.gov.
PUBLIC EMPLOYEES'RETIREMENT SYSTEM (PERS)
PERS members include elected officials; state employees; employees of the Supreme, Appeals and Superior Courts;
employees of the legislature;employees of district and municipal courts; employees of local governments;and higher
education employees not participating in higher education retirement programs. PERS is comprised of three separate
pension plans for membership purposes. PERS plans 1 and 2 are defined benefit plans, and PERS plan 3 is a defined
benefit plan with a defined contribution component.
PERS Plan 1 provides retirement,disability and death benefits. Retirement benefits are determined as 2% of the
member's average final compensation(AFC) times the member's years of service. The AFC is the average of the
member's 24 highest consecutive service months. Members are eligible for retirement from active status at any age
with at least 30 years of service,at age 55 with at least 25 years of service,or at age 60 with at least five years of
service. Members retiring from active status prior to the age of 65 may receive actuarially reduced benefits.
Retirement benefits are actuarially reduced to reflect the choice of a survivor benefit. Other benefits include duty and
non-duty disability payments,an optional cost-of-living adjustment(COLA),and a one-time duty-related death
benefit,if found eligible by the Department of Labor and Industries. PERS 1 members were vested after the
completion of five years of eligible service. The plan was closed to new entrants on September 30, 1977.
Contributions
The PERS Plan 1 member contribution rate is established by State statute at 6%. The employer contribution rate is
developed by the Office of the State Actuary and includes an administrative expense component that is currently set
Comprehensive Annual Financial Report(CAFR)-59
at 0.18%. Each biennium,the state Pension Funding Council adopts Plan 1 employer contribution rates. The PERS
Plan 1 required contribution rates (expressed as a percentage of covered payroll) for 2018 were as follows:
PERS PLAN 1
Actual Contribution Rates Employer Employee
January-August 2018
PERS Plan 1 7.49% 6.001/0
PERS Plan 1 UAAL 5.03/ n/a
Administrative Fee 0.15/ n/a
Total 12.70% 6.001/0
September-December 2018
PERS Plan 1 7.52% 6.00%
PERS Plan 1 UAAL 5.13% n/a
Administrative Fee 0.15/ n/a
Total 12.83% 6.00%
PERS Plan 2/3 provides retirement,disability and death benefits. Retirement benefits are determined as 2%of the
member's average final compensation(AFC) times the member's years of service for Plan 2 and 1% of AFC for Plan 3.
The AFC is the average of the member's 60 highest-paid consecutive service months. There is no cap on years of
service credit. Members are eligible for retirement with a full benefit at 65 with at least five years of service credit.
Retirement before age 65 is considered an early retirement. PERS Plan 2/3 members who have at least 20 years of
service credit and are 55 years of age or older,are eligible for early retirement with a benefit that is reduced by a factor
that varies according to age for each year before age 65. PERS Plan 2/3 members who have 30 or more years of
service credit and are at least 55 years old can retire under one of two provisions:
• With a benefit that is reduced by 3% for each year before age 65;or
• With a benefit that has a smaller (or no) reduction(depending on age) that imposes stricter return-to-work
rules.
PERS Plan 2/3 members hired on or after May 1,2013 have the option to retire early by accepting a reduction of 5% for
each year of retirement before age 65. This option is available only to those who are age 55 or older and have at least 30
years of service credit. PERS Plan 2/3 retirement benefits are also actuarially reduced to reflect the choice of a survivor
benefit. Other PERS Plan 2/3 benefits include duty and non-duty disability payments,a cost-of-living allowance(based
on the CPI), capped at 3% annually and a one-time duty related death benefit, if found eligible by the Department of
Labor and Industries. PERS 2 members are vested after completing five years of eligible service. Plan 3 members are
vested in the defined benefit portion of their plan after ten years of service;or after five years of service if 12 months of
that service are earned after age 44.
PERS Plan 3 defined contribution benefits are totally dependent on employee contributions and investment earnings
on those contributions. PERS Plan 3 members choose their contribution rate upon joining membership and have a
chance to change rates upon changing employers. As established by statute,Plan 3 required defined contribution
rates are set at a minimum of 5%and escalate to 15%with a choice of six options. Employers do not contribute to the
defined contribution benefits. PERS Plan 3 members are immediately vested in the defined contribution portion of
their plan.
Contributions
The PERS Plan 2/3 employer and employee contribution rates are developed by the Office of the State Actuary to
fully fund Plan 2 and the defined benefit portion of Plan 3. The Plan 2/3 employer rates include a component to
address the PERS Plan 1 UAAL and an administrative expense that is currently set at 0.18%. Each biennium,the state
60-Comprehensive Annual Financial Report(CAFR)
Pension Funding Council adopts Plan 2 employer and employee contribution rates and Plan 3 contribution rates. The
PERS Plan 2/3 required contribution rates(expressed as a percentage of covered payroll) for 2018 were as follows:
PERS PLAN 2/3
Actual Contribution Rates Employer 2/3 Employee 2
January-August 2018
PERS Plan 2/3 7.49% 7.38%
PERS Plan 1 UAAL 5.03/ n/a
Administrative Fee 0.15/ n/a
Employee PERS Plan 3 - Varies
Total 12.70/ 7.38%
September-December 2018
PERS Plan 2/3 7.52% 7.41%
PERS Plan 1 UAAL 5.13/ n/a
Administrative Fee 0.15/ n/a
Employee PERS Plan 3 - Varies
Total 12.83% 7.41%
The City of Yakima's actual PERS plan contributions were$1,570,927 to PERS Plan 1 and$2,194,199 to PERS Plan 2/3
for the year ended December 31,2018.
PUBLIC SAFETY EMPLOYEES'RETIREMENT SYSTEM (PSERS)
PSERS Plan 2 was created by the 2004 Legislature and became effective July 1,2006. To be eligible for membership,an
employee must work on a full time basis and:
• Have completed a certified criminal justice training course with authority to arrest,conduct criminal
investigations,enforce the criminal laws of Washington,and carry a firearm as part of the job;or
• Have primary responsibility to ensure the custody and security of incarcerated or probationary individuals;
or
• Function as a limited authority Washington peace officer,as defined in RCW 10.93.020;or
• Have primary responsibility to supervise eligible members who meet the above criteria.
PSERS membership includes:
• PERS 2 or 3 employees hired by a covered employer before July 1,2006,who met at least one of the PSERS
eligibility criteria and elected membership during the period of July 1,2006 to September 30 2006;and
• Employees hired on or after July 1,2006 by a covered employer,that meet at least one of the PSERS eligibility
criteria.
PSERS covered employers include:
• Certain State of Washington agencies (Department of Corrections,Department of Natural Resources,
Gambling commission,Liquor Control Board,Parks and Recreation Commission,and Washington State
Patrol),
• Washington State Counties,
• Washington State Cities (except for Seattle,Spokane,and Tacoma),
• Correctional entities formed by PSERS employers under the Interlocal Cooperation Act.
Comprehensive Annual Financial Report(CAFR)-61
PSERS Plan 2 provides retirement,disability and death benefits. Retirement benefits are determined as 2%of the average
final compensation(AFC)for each year of service. The AFC is based on the member's 60 consecutive highest creditable
months of service. Benefits are actuarially reduced for each year that the member's age is less than 60(with ten or more
service credit years in PSERS), or less than 65 (with fewer than ten service credit years). There is no cap on years of
service credit. Members are eligible for retirement at the age of 65 with five years of service;or at the age of 60 with at
least ten years of PSERS service credit; or at age 53 with 20 years of service. Retirement before age 60 is considered an
early retirement. PSERS members who retire prior to the age of 60 receive reduced benefits. If retirement is at age 53 or
older with at least 20 years of service, a 3% per year reduction for each year between the age at retirement and age 60
applies. PSERS Plan 2 retirement benefits are actuarially reduced to reflect the choice of a survivor benefit. Other benefits
include duty and non-duty disability payments, an optional cost-of living adjustment (COLA), and a one-time duty-
related death benefit,if found eligible by the Department of Labor and Industries. PSERS Plan 2 members are vested
after completing five years of eligible service.
Contributions
The PSERS Plan 2 employer and employee contribution rates are developed by the Office of the State Actuary to fully
fund Plan 2. The Plan 2 employer rates include components to address the PERS Plan 1 unfunded actuarial accrued
liability and administrative expense currently set at 0.18%. Each biennium,the state Pension Funding Council adopts
Plan 2 employer and employee contribution rates.
The PSERS Plan 2 required contribution rates (expressed as a percentage of current-year covered payroll) for 2018
were as follows:
PSERS PLAN 2
Actual Contribution Rates Employer Employee
January-August 2018
PSERS Plan 2 6.74% 6.74%
PERS Plan 1 UAAL 5.03/ n/a
Administrative Fee 0.15/ n/a
Total 11.95% 6.74%
September-December 2018
PSERS Plan 2 7.07% 7.07%
PERS Plan 1 UAAL 5.13% n/a
Administrative Fee 0.15/ n/a
Total 12.35% 7.07%
The City of Yakima's actual plan contributions were$57,599 to PSERS Plan 2 for the year ended December 31,2018.
LAW ENFORCEMENT OFFICERS'AND FIRE FIGHTERS'RETIREMENT SYSTEM (LEOFF)
LEOFF membership includes all full-time,fully compensated,local law enforcement commissioned officers,
firefighters,and as of July 24,2005,emergency medical technicians. LEOFF is comprised of two separate defined
benefit plans.
LEOFF Plan 1
This plan provides retirement,disability and death benefits. Retirement benefits are determined per year of service
calculated as a percent of final average salary (FAS) as follows:
• 20+years of service—2.0%of FAS
• 10-19 years of service—1.5% of FAS
• 5-9 years of service—1%of FAS
62-Comprehensive Annual Financial Report(CAFR)
The FAS is the basic monthly salary received at the time of retirement,provided a member has held the same position
or rank for 12 months preceding the date of retirement. Otherwise,it is the average of the highest consecutive 24
months' salary within the last ten years of service. Members are eligible for retirement with five years of service at the
age of 50. Other benefits include duty and non-duty disability payments,a cost-of living adjustment(COLA),and a
one-time duty-related death benefit,if found eligible by the Department of Labor and Industries. LEOFF 1 members
were vested after the completion of five years of eligible service. The plan was closed to new entrants on September
30, 1977.
Contributions
Starting on July 1,2000, LEOFF Plan 1 employers and employees contribute zero percent,as long as the plan remains
fully funded. The LEOFF Plan I had no required employer or employee contributions for fiscal year 2018. Employers
paid only the administrative expense of 0.18%of covered payroll.
LEOFF Plan 2 provides retirement,disability and death benefits. Retirement benefits are determined as 2% of the
final average salary (FAS) per year of service(the FAS is based on the highest consecutive 60 months). Members are
eligible for retirement with a full benefit at 53 with at least five years of service credit. Members who retire prior to
the age of 53 receive reduced benefits. If the member has at least 20 years of service and is age 50,the reduction is 3%
for each year prior to age 53. Otherwise,the benefits are actuarially reduced for each year prior to age 53. LEOFF 2
retirement benefits are also actuarially reduced to reflect the choice of a survivor benefit. Other benefits include duty
and non-duty disability payments,a cost-of-living allowance (based on the CPI),capped at 3%annually and a one-
time duty-related death benefit,if found eligible by the Department of Labor and Industries. LEOFF 2 members are
vested after the completion of five years of eligible service.
Contributions
The LEOFF Plan 2 employer and employee contribution rates are developed by the Office of the State Actuary to fully
fund Plan 2. The employer rate includes an administrative expense component set at 0.18%. Plan 2 employers and
employees are required to pay at the level adopted by the LEOFF Plan 2 Retirement Board.
Effective July 1,2017,when a LEOFF employer charges a fee or recovers costs for services rendered by a LEOFF 2
member to a non-LEOFF employer,the LEOFF employer must cover both the employer and state contributions on the
LEOFF 2 basic salary earned for those services.
The LEOFF Plan 2 required contribution rates (expressed as a percentage of covered payroll) for 2018 were as follows:
LEOFF PLAN 2
Actual Contribution Rates Employer Employee
State and local governments 5.25% 8.75%
Administrative Fee 0.18% n/a
Total 5.43% 8.75%
The City of Yakima's actual contributions to the plan were$1,233,450 for the year ended December 31,2018.
The Legislature,by means of a special funding arrangement,appropriates money from the state General Fund to
supplement the current service liability and fund the prior service costs of Plan 2 in accordance with the
recommendations of the Pension Funding Council and the LEOFF Plan 2 Retirement Board. This special funding
situation is not mandated by the state constitution and could be changed by statute. For the state fiscal year ending
June 30,2018,the state contributed$68,152,127 to LEOFF Plan 2. The amount recognized by the City as its
proportionate share of this amount is ($14,409,269).
Actuarial Assumptions
The total pension liability(1PL) for each of the DRS plans was determined using the most recent actuarial valuation
completed in 2018 with a valuation date of June 30,2017. The actuarial assumptions used in the valuation were based
Comprehensive Annual Financial Report(CAFR)-63
on the results of the Office of the State Actuary's(OSA)2007-2012 Experience Study and the 2017 Economic Experience
Study.
Additional assumptions for subsequent events and law changes are current as of the 2017 actuarial valuation report.
The II'L was calculated as of the valuation date and rolled forward to the measurement date of June 30,2018. Plan
liabilities were rolled forward from June 30,2017,to June 30,2018,reflecting each plans normal cost(using the entry-
age cost method),assumed interest and actual benefit payments.
• Inflation-2.75%total economic inflation;3.50%salary inflation
• Salary increases-In addition to the base 3.50% salary inflation assumption,salaries are also expected to grow
by promotions and longevity.
• Investment rate of return-7.4%
Mortality rates were based on the RP-2000 report's Combined Healthy Table and Combined Disabled Table,published
by the Society of Actuaries. The OSA applied offsets to the base table and recognized future improvements in
mortality by projecting the mortality rates using 100%Scale BB. Mortality rates are applied on a generational basis;
meaning,each member is assumed to receive additional mortality improvements in each future year throughout his
or her lifetime.
There were changes in methods and assumptions since the last valuation.
• Lowered the valuation interest rate from 7.70%to 7.50%for all systems except LEOFF 2. For LEOFF 2 the
valuation interest rate was lowered from 7.50%to 7.40%.
• Lowered the assumed general salary growth from 3.75%to 3.50% for all systems.
• Lowered assumed inflation from 3.00%to 2.75%for all systems.
• Modified how the valuation software calculates benefits paid to remarried duty-related death survivors of
LEOFF 2 members.
• Updated the trend that the valuation software uses to project medical inflation for LEOFF 2 survivors of a
duty-related death,and for certain LEOFF 2 medical-related duty disability benefits.
Discount Rate
The discount rate used to measure the total pension liability for all DRS plans was 7.4%.
To determine that rate,an asset sufficiency test included an assumed 7.5%long-term discount rate to determine
funding liabilities for calculating future contribution rate requirements. (All plans use 7.5%except LEOFF 2,which
has assumed 7.4%). Consistent with the long-term expected rate of return,a 7.4%future investment rate of return on
invested assets was assumed for the test. Contributions from plan members and employers are assumed to continue
being made at contractually required rates (including PERS 2/3,PSERS 2,SERS 2/3,and TRS 2/3 employers,whose
rates include a component for the PERS 1,and IRS 1 plan liabilities). Based on these assumptions,the pension plans'
fiduciary net position was projected to be available to make all projected future benefit payments of current plan
members. Therefore,the long-term expected rate of return of 7.4%was used to determine the total liability.
Long-Term Expected Rate of Return
The long-term expected rate of return on the DRS pension plan investments of 7.4%was determined using a building-
block-method. In selecting this assumption,the Office of the State Actuary(OSA) reviewed the historical experience
data,considered the historical conditions that produced past annual investment returns,and considered capital
market assumptions and simulated expected investment returns provided by the Washington State Investment Board
(WSIB). The WSIB uses the capital market assumptions and their target asset allocation to simulate future investment
returns over various time horizons.
64-Comprehensive Annual Financial Report(CAFR)
Estimated Rates of Return by Asset Class
Best estimates of arithmetic real rates of return for each major asset class included in the pension plans target asset
allocation as of June 30,2018,are summarized in the table below. The inflation component used to create the table is
2.2%and represents the WSIB's most recent long-term estimate of broad economic inflation.
%LT Expected
Real Rate of
Target Return
Asset Class Allocation Arithmetic
Fixed income 20% 1.701/0
Tangible assets 7% 4.90/
Real estate 18% 5.801/0
Global equity 32/ 6.30/
Private Equity 23% 9.301/0
1001/0
Sensitivity of Net Pension Liability
The table below presents the City of Yakima's proportionate share of the net pension liability calculated using the
discount rate of 7.4%,as well as what the City of Yakima's proportionate share of the net pension liability would be if
it were calculated using a discount rate that is 1-percentage point lower (6.4%) or 1-percentage point higher (8.4%)
than the current rate.
Current
1%Decrease Discount 1%Increase
(6.4)% Rate(7.4%) (8.4)%
PERS 1 $ 12,647,976 $ 10,291,797 $ 8,250,870
PERS 2/3 21,640,315 4,731,133 (9,132,508)
PSERS 2 274,769 2,645 (210,883)
LEOFF 1 (3,803,463) (4,781,106) (5,622,801)
LEOFF 2 (1,916,163) (14,409,269) (24,598,850)
Pension Plan Fiduciary Net Position
Detailed information about the States pension plans' fiduciary net position is available in the separately issued DRS
financial report.
Pension Liabilities (Assets),Pension Expense,and Deferred Outflows of Resources and Deferred Inflows of
Resources Related to Pensions
At June 30,2018,the City of Yakima reported a total pension asset of($19,190,375) and a pension liability of$15.0
million for its proportionate share of the net pension assets and liabilities as follows:
Asset Liability
PERS 1 $ $ 10,291,797
PERS 2/3 4,731,133
PSERS 2 — 2,645
LEOFF 1 (4,781,106)
LEOFF 2 (14,409,269)
Total $ (19,190,375) $ 15,025,575
The amount of the liability (asset) reported above for LEOFF Plans 1 and 2 reflects a reduction for State pension
support provided to the City of Yakima. The amount recognized by the city as its proportionate share of the net
Comprehensive Annual Financial Report(CAFR)-65
pension liability(asset),the related State support,and the total portion of the net pension liability (asset) that was
associated with the city were as follows:
LEOFF 1 LEOFF 2
Risk Asset Asset
Employer's proportionate share $ (4,781,106) $ (14,409,269)
State's proportionate share of the net pension
asset associated with the employer (32,339,285) (9,329,730)
Total $ (37,120,391) $ (23,738,999)
At June 30,the City of Yakima's proportionate share of the collective net pension liabilities was as follows:
Proportionate Proportionate Change in
Share 6/30/17 Share 6/30/18 Proportion
PERS 1 0.2396/ 0.2304/ (0.0092P/
PERS 2/3 0.2884% 0.2771% (0.0113)%
PSERS 2 0.2143% 0.2135% (0.0008)%
LEOFF 1 0.2625% 0.2633% 0.0008%
LEOFF2 0.7399% 0.7097% (0.0302)%
Employer contribution transmittals received and processed by the DRS for the fiscal year ended June 30 are used as
the basis for determining each employer's proportionate share of the collective pension amounts reported by the DRS
in the Schedules of Employer and Nonemployer Allocations for all plans except LEOFF 1.
LEOFF Plan 1 allocation percentages are based on the total historical employer contributions to LEOFF 1 from 1971
through 2000 and the retirement benefit payments in fiscal year 2018. Historical data was obtained from a 2011 study
by the Office of the State Actuary(OSA). In fiscal year 2018,the state of Washington contributed 87.12%of LEOFF 1
employer contributions and all other employers contributed the remaining 12.88%of employer contributions. LEOFF
1 is fully funded and no further employer contributions have been required since June 2000. If the plan becomes
underfunded,funding of the remaining liability will require new legislation. The allocation method the plan chose
reflects the projected long-term contribution effort based on historical data.
In fiscal year 2018,the state of Washington contributed 39.30% of LEOFF 2 employer contributions pursuant to RCW
41.26.725 and all other employers contributed the remaining 60.70%of employer contributions.
The collective net pension liability (asset)was measured as of June 30,2018,and the actuarial valuation date on which
the total pension liability(asset) is based was as of June 30,2017,with update procedures used to roll forward the
total pension liability to the measurement date.
Pension Expense
For the year ended December 31,2018,the City of Yakima's recognized pension expense as follows:
Pension
Expense
PERS 1 $ 458,119
PERS 2/3 (167,516)
PSERS 2 44,818
LEOFF 1 (780,471)
LEOFF 2 (484,537)
Total $ (929,587)
66-Comprehensive Annual Financial Report(CAFR)
Deferred Outflows of Resources and Deferred Inflows of Resources
At December 31,2018,the City of Yakima's reported deferred outflows of resources and deferred inflows of resources
related to pensions from the following sources:
DEFERRED OUTFLOWS/INFLOWS
Deferred Deferred
Outflows Inflows
Plan of Resources of Resources
PERS Plan 1
Differences between expected and actual experience $ $ 408,990
Contributions subsequent to the measurement date 791,067
Total PERS Plan 1 $ 791,067 $ 408,990
PERS Plan 2/3
Differences between expected and actual experience $ 579,913 $ 828,335
Net difference between projected and actual investment 2,903,242
earnings on pension plan investments 1,346,442
Changes of assmnptions 55,346
Changes in proportion and differences between 11,258 507,678
contributions and proportionate share of contributions
Contributions subsequent to the measurement date 1,099,704
Total PERS Plan 2/3 $ 1,746,221 $ 5,585,697
PSERS Plan 2
Differences between expected and actual experience $ 19,616 $ 2,714
Net difference between projected and actual investment 35,662
earnings on pension plan investments
Changes of assmnptions 283 16,367
Changes in proportion and differences between 2,607
contributions and proportionate share of contributions
Contributions subsequent to the measurement date 29,476
Total PSERS Plan 2 $ 49,375 $ 57,350
LEOFF 1
Net difference between projected and actual investment $ $ 388,156
earnings on pension plan investments
Total LEOFF 1 $ $ 388,156
Comprehensive Annual Financial Report(CAFR)-67
DEFERRED OUTFLOWS/INFLOWS
Defend Defend
Outflows Inflows
Plan of Resources of Resources
LEOFF2
Differences between expected and actual experience $ 771,876 $ 334,585
Net difference between projected and actual investment 2,521,816
earnings on pension plan investments
Changes of assumptions 8,157 2,067,991
Changes in proportion and differences between 333,452 3,018
contributions and proportionate share of contributions
Contributions subsequent to the measurement date 612,253
Total LEOFF 2 $ 1,725,738 $ 4,927,410
Total $ 4,312,401 $ 11,367,603
Deferred outflows of resources related to pensions resulting from the City of Yakima's contributions subsequent to the
measurement date will be recognized as a reduction of the net pension liability in the year ended December 31,2019.
Other amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized
in pension expense as follows:
Year ended
December31 PERS 1 PERS 2/3 PSERS LEOFF 1 LEOFF 2
2019 $ 17,893 $ (567,367) $ (1,253) $ 371 $ (262,766)
2020 (89,408) (1,044,258) (5,068) (87,564) (644,584)
2021 (268,287) (1,845,738) (12,648) (238,491) (1,457,790)
2022 (69,189) (726,741) (6,550) (62,471) (530,400)
2023 (312,255) (1,667) (172,879)
Thereafter (442,822) (10,266) (745,507)
VOLUNTEER FIREFIGHTERS' AND RESERVE OFFICERS'RELIEF AND PENSION FUND (VFFRPF)
VFFRPF is a cost-sharing,multiple-employer defined benefit plan administered by the State Board for Volunteer Fire
Fighters and Reserve Officers. The Board is appointed by the Governor and is comprised of five members of fire
departments covered by Chapter 41.24 RCW. Administration costs of the VFFRPF are funded through legislative
appropriation. Approximately 450 local governments,consisting of fire departments,emergency medical service
districts and law enforcement agencies,contribute to the plan. In addition,the state contributes 40%of the fire
insurance premium tax. Retirement benefits are established in Chapter 41.24 RCW and may be amended only by the
Legislature.
The VFFRPF plan does not issue a stand-alone financial report,but is included in the comprehensive annual financial
report(CAFR) of the State of Washington. The State CAFR may be downloaded from the Office of Financial
Management(OFM)website at www.ofm.wa.gov.
Membership in the VFFRPF includes volunteer firefighters,emergency medical technicians,and commissioned
reserve law enforcement officers of participating employers. After 25 years of active membership,members having
reached the age of 65 and who have paid their annual retirement fee for 25 years are entitled to receive a monthly
benefit of$50 plus$10 per year of service,for a maximum monthly benefit of$300. Reduced pensions are available
for members under the age of 65 or with less than 25 years of service.
68-Comprehensive Annual Financial Report(CAFR)
Members are vested after ten years of service. The VFFRPF members earn no interest on contributions and may elect
to withdraw their contributions upon termination. Death and active duty disability benefits are provided at no cost to
the member. Death benefits in the line of duty consist of a lump sum of$214,000 and funeral and burial expenses of
$2,000. Members receiving disability benefits at the time of death shall be paid$500.
Contributions
Contribution rates for emergency medical service districts (EMSD) and law enforcement agencies are set each year by
the Board based on the actual cost of participation as determined by the Office of the State Actuary. All other
contribution rates are set by the Legislature. Municipalities may opt to pay the member's fee on their behalf.
The contribution rates for 2018 were as follows:
VFFRPF
EMSD and
Reserve
Actual Contribution Rates Firefighters Officers
Municipality fee $ 30 $ 105
Member Fee 30 30
The City of Yakima's actual contributions to the plan were$1,485 for the year ended December 31,2018.
In accordance with Chapter 41.24 RCW,the state contributes 40% of the fire insurance premium tax to the plan. For
fiscal year 2018,the fire insurance premium tax contribution was$7.2 million. The city received$97,885 of this
amount.
Actuarial Assumptions
The total pension asset for the VFFRPF was determined by an actuarial valuation by the Office of the State Actuary
(OSA) as of June 30,2016,and rolled forward to June 30,2017,using the following actuarial assumptions,applied to
all prior periods included in the measurement:
• Inflation: 2.50%
• Salary increases: N/A
• Investment rate of return: 7.0%
The actuarial assumptions used in the valuation were based on the results of the Office of the State Actuary's (OSA)
2007-2012 Experience Study. Additional assumptions for subsequent events and law changes are current as of the 2017
valuation report.
Mortality rates were based on the RP-2000 report's Combined Healthy Table and Combined Disabled Table,published
by the Society of Actuaries. The OSA applied offsets to the base table and recognized future improvements in
mortality by projecting the mortality rates using 100%Scale BB. Mortality rates are applied on a generational basis;
meaning,each member is assumed to receive additional mortality improvements in each future year throughout their
lifetime.
The discount rate used to measure the total VFFRPF pension asset was 7.0%. To determine that rate,an asset
sufficiency test was completed to test whether the pension plan's fiduciary net position was sufficient to make all
projected future benefit payments of current plan members. Consistent with current law,the completed asset
sufficiency test included an assumed 7%long-term discount rate to determine funding liabilities for calculating future
contribution rate requirements. Consistent with the long-term expected rate of return,a 7%future investment rate of
return on invested assets was assumed for the test. Contributions from plan members,municipalities,and the state
will be made at the current contribution rate. Based on those assumptions,the pension plan's fiduciary net position
was projected to be available to make all projected future benefit payments of current plan members.
Comprehensive Annual Financial Report(CAFR)-69
The long-term expected rate of return on the VFFRPF pension plan investments of 7.4%was determined using a
building-block-method. In selecting this assumption,the Office of the State Actuary(OSA) reviewed the historical
experience data,considered the historical conditions that produced past annual investment returns,and considered
capital market assumptions and simulated expected investment returns provided by the Washington State Investment
Board (WSIB). The WSIB uses the capital market assumptions and their target asset allocation to simulate future
investment returns over various time horizons.
Estimated Rates of Return by Asset Class
Best estimates of arithmetic real rates of return for each major asset class included in the pension plan's target asset
allocation as of June 30,2018,are summarized in the table below. The inflation component used to create the table is
2.2%and represents the WSIB's most recent long-term estimate of broad economic inflation.
%LT Expected
Real Rate of
Target Return
Asset Class Allocation Arithmetic
Fixed income 20% 1.701/0
Tangible assets 7% 4.901/0
Real estate 18% 5.801/0
Global equity 32% 6.301/0
Private Equity 23% 9.301/0
1001/0
Sensitivity of Net Pension Asset
The following presents the City of Yakima's proportionate share of the VFFRPF net pension asset calculated using the
discount rate of 7%,as well as what the City of Yakima's proportionate share of the net pension asset would be if it
were calculated using a discount rate that is 1-percentage point lower (6%) or 1-percentage point higher (8%) than the
current rate.
Current
Discount
1%Decrease Rate 1%Increase
(6.0%) (7.0%) (8.0%)
VFFRPF $ (48,054) $ (85,107) $ (117,106)
Pension Plan Fiduciary Net Position
Detailed information about the VFFRPF plan's fiduciary net position is available in the separately issued State of
Washington CAFR.
Pension Liabilities (Assets),Pension Expense,and Deferred Outflows of Resources and Deferred Inflows of
Resources Related to Pensions
At June 30,2018,the City of Yakima reported an asset of$85,107 for its proportionate share of the VFFRPF plan's net
pension asset. The City of Yakima's proportion of the net pension asset was based on actual contributions to the plan
relative to total contributions of all participating municipalities. At June 30,2018,the City of Yakima's proportion was
0.16%.
The VFFRPF collective net pension asset was measured as of June 30,2018,and the actuarial valuation date on which
the total pension liability is based was as of June 30,2017,with update procedures used to roll forward the total
pension liability to the measurement date.
70-Comprehensive Annual Financial Report(CAFR)
For the year ended December 31,2018,the City of Yakima recognized pension expense of$1,485. Deferred outflows
of resources and deferred inflows of resources are not material to the VFFRPF plan.
FIRE PENSION
AGGREGATE PENSION AMOUNTS-FIRE
Pension liabilities $ 6,029,283
Pension assets Deferred outflows of resources
Deferred inflows of resources
Pension expense/expenditures (109,208)
The City has a single employer,defined benefit pension plan for Firefighters employed prior to March 1, 1970,and
governed by Washington State Law RCW 41.26. Under the terms of the governing law,the pension member is
entitled to payment from the City's pension plan for those benefits in excess of those calculated under the LEOFF
plan.
The City's Firemen's Pension Fund is a closed group. The number of inactive,retired members and survivors covered
by the benefit terms is 50,with a combined monthly pension of$45,089 paid by the City. Cost of Living Adjustment
(COLA) was 3.32%and Collective Bargaining Agreement(CBA)was 3.75%. There are no active members covered by
the benefit terms;no new members are permitted. Employees attaining the age of fifty who have completed 25 or
more years of service are entitled to annual benefits of fifty-percent of their salary plus an additional 2%for each year
of service in excess of 25 years,up to a maximum of 60%of salary. The pension plan also provides death and
disability pension benefits plus sick benefits for eligible active and retired employees.
If the employee terminates his employment with the Fire Department and is not eligible for any other benefit under
the Firemen's Pension,the employee is entitled to the following:
• Return of accumulated contributions less any benefits paid.
• When a Firefighter would have had 25 years of service,2% of salary for each year of service.
During the year ended December 31,2018,there were no plan amendments.
Contributions
The Firemen's Pension is a department within the General Fund. The City engaged Milliman U.S.A.,Consultant&
Actuaries,to perform the pension's actuarial study. They issued a valuation dated January 1,2018.
Firefighters are no longer required to contribute to the Firemen's Pension. The City is required to contribute the
amount necessary to fund the Firemen's Pension,using the aggregate projected benefit method. Under state law,
partial funding of the Firemen's Pension Fund is provided by:
• An annual tax levy of$.2250 per$1,000 of assessed valuation of all taxable property of the City in the amount
of$1,104,872 for fiscal year 2018.
• The Firemen's Pension Fund also receives a proportionate share of the 25%of the tax on fire insurance
premiums set aside by the state for all paid firemen in the state which totaled$97,885 for fiscal year 2018.
• There was no additional funding is provided by investment interest earnings in fiscal 2018.
Comprehensive Annual Financial Report(CAFR)-71
Actuarial Assumptions
The City's funding policy is to provide for periodic employer contributions at actuarially determined rates that,
expressed as percentages of annual covered payroll,are designed to accumulate sufficient assets to pay benefits when
due.
Actuarial assumptions used to determine the total pension liability in the January 1,2018,valuation were based on
the results of an actuarial experience study covering the period from January 1,2018 through December 31,2018.
Those assumptions,applied to all periods included in the measurement,are as follows.
• Inflation-2.25%
• Salary increases,including inflation-3.25%
• Mortality-RP-2000 Mortality Table(combined healthy) with generational projection using 100% of Projection
Scale BB,with ages set back one year for males and forward one year for females (set forward two years for
disabled members).
• Actuarial cost method-Entry age normal
The following presents the total pension liability of the City,calculated using the discount rate of 4.0%,as well as
what the City's total pension liability would be if it were calculated using a discount rate that is 1 percentage point
lower (3.0%) or 1 percentage point higher (5.0%) than the current rate.
Current
1%Decrease Discount 1%Increase
(3.0%) Rate(4.0%) (5.0%)
Total Pension Liability $ 6,512,328 $ 6,029,283 $ 5,606,889
Pension Expenses
For the year ended December 31,2018,the pension expense is$109,208.
Total Pension Liability
Due to the implementation of GASB 73,the City is now required to report the pension liability of this single employee
non-trust pension plan. The City recognizes its total pension liability,rather than a net pension liability. In order for
the City to recognize a net pension liability,assets must be accumulated in a trust that meets all of the following
criteria:
• Contributions from the employer and any nonemployer contributing entities,and earnings thereon,must
be irrevocable.
• Plan assets must be dedicated to providing pensions to Plan members in accordance with the benefit
terms.
• Plan assets must be legally protected from the creditors of the employer,nonemployer contributing
entities,the Plan administrator,and Plan members.
No assets are accumulated in a trust that meets all of the above criteria because the City's contributions are not
irrevocable. Accordingly,the City's total pension liability is not reduced by any assets accumulated in a trust that
meets the criteria and the City must report its total pension liability.
The City's total pension liability was determined by an actuarial valuation as of the measurement date of December
31,2018. Changes in the City's total pension liability were as follows:
72-Comprehensive Annual Financial Report(CAFR)
Total
Pension
Fire Pension Liability
Total liability-Beginning $ 6,635,284
Changes for the year:
Interest on total pension liability 221,918
Effect of assmnptions,changes or inputs (233,241)
Expected benefit payments (594,678)
Net change in total pension liability (606,001)
Total pension liability-ending $ 6,029,283
The liability has decreased since the last valuation. The fact that excess benefits increased less than anticipated since
the prior valuation led to a decrease in liability This decrease was partially offset by the demographic experience of
the Plan over the past two years.
The Plan remains sensitive to demographic experience that deviates from expectations due to the small size of the
Plan membership. The Plan also remains sensitive to deviations in the excess benefit amounts from expectations.
At December 31,2018,the City of Yakima reported deferred outflows of resources and deferred inflows of resources
related to pensions from the following sources:
Deferred Deferred
Outflows of Inflows of
Fire Pension Resources Resources
Differences between expected and actual experience $ $
Changes of assmnptions
Payments subsequent to the measurement date
Total $ — $
Deferred outflows of resources related to pensions resulting from the City of Yakima's payments subsequent to the
measurement date will be recognized as a reduction of the total pension liability in the year ended December 31,2018.
There are no deferred outflows as of December 31,2018. Other amounts reported as deferred outflows and deferred
inflows of resources related to pensions will be recognized in pension expense as follows:
Year ended December31
2019 $
2020
2021
2022
2023
Thereafter
Comprehensive Annual Financial Report(CAFR)-73
POLICE PENSION
AGGREGATE PENSION AMOUNTS-POLICE
Pension liabilities $ 4,269,513
Pension assets Deferred outflows of resources
Deferred inflows of resources
Pension expense/expenditures (10,308)
The City has a single employer,defined benefit pension plan for Police Officers employed prior to March 1, 1970,and
governed by Washington State Law RCW 41.20 and 41.26. Under the governing law,the pension member is entitled
to payment from the City's pension plan for those benefits in excess of those calculated under the LEOFF plan. The
City also covers four members who were ineligible under the State Law Enforcement Officers and Firefighters
(LEOFF)Program.
The City's Police Pension Fund is a closed group. The number of inactive,retired members and survivors covered by
the benefit terms is 34,with a combined monthly pension of$29,820 paid by the City. Cost of Living Adjustment
(COLA) was 3.32%and Collective Bargaining Agreement(CBA)was 2.5%. There are no active members covered by
the benefit terms;no new members are permitted. Employees who have completed 25 years or more of service are
entitled to annual benefits of 50% of their salary plus an additional 2%for each year of service in excess of 25 years—
up to a maximum of 60%of salary. The plan provides death and disability pension benefits plus sick benefits for
eligible active and retired employees.
There are no longer any active employees who are eligible for this benefit.
During the year ended December 31,2018,there were no plan amendments.
Contributions
The Police Pension is a department within the General Fund. The City engaged Milliman U.S.A.,Consultant&
Actuaries,to perform the pension's actuarial study. They issued a valuation dated January 1,2018. The valuation
provided actuarially determined rates to accumulate sufficient assets to pay benefits when due rather than the current
pay as you go basis.
Actuarial Assumptions
The City's funding policy is to provide for periodic employer contributions at actuarially determined rates that,
expressed as percentages of annual covered payroll,are designed to accumulate sufficient assets to pay benefits when
due.
The total pension liability was determined by an actuarial valuation as of January 1,2018 the valuation date,
calculated based on the discount rate and actuarial assumptions below.
• Inflation-2.25%
• Salary increases,including inflation-3.25%
• Mortality-RP-2000 Mortality Table(combined healthy) with generational projection using 100% of Projection
Scale BB,with ages set back one year for males and forward one year for females (set forward two years for
disabled members).
• Actuarial cost method- Entry age normal
74-Comprehensive Annual Financial Report(CAFR)
The following presents the total pension liability of the City,calculated using the discount rate of 4.0%,as well as
what the City's total pension liability would be if it were calculated using a discount rate that is 1 percentage point
lower (3.0%) or 1 percentage point higher (5.0%) than the current rate.
Current
1%Decrease Discount 1%Increase
(3.0%) Rate(4.0%) (5.0%)
Total Pension Liability $ 4,614,954 $ 4,269,513 $ 3,966,456
Pension Expenses
For the year ended December 31,2018,the pension expense is negative$10,378.
Total Pension Liability
Due to the implementation of GASB 73,the City is now required to report the pension liability of this single employee
non-trust pension plan. The City recognizes its total pension liability,rather than a net pension liability. In order for
the City to recognize a net pension liability,assets must be accumulated in a trust that meets all of the following
criteria:
• Contributions from the employer and any nonemployer contributing entities,and earnings thereon,must
be irrevocable.
• Plan assets must be dedicated to providing pensions to Plan members in accordance with the benefit
terms.
• Plan assets must be legally protected from the creditors of the employer,nonemployer contributing
entities,the Plan administrator,and Plan members.
No assets are accumulated in a trust that meets all of the above criteria because the City's contributions are not
irrevocable. Accordingly,the City's total pension liability is not reduced by any assets accumulated in a trust that
meets the criteria and the City must report its total pension liability.
The City's total pension liability was determined by an actuarial valuation as of the measurement date of December
31,2018. Changes in the City's total pension liability were as follows:
Total
Pension
Police Pension Liability
Total liability-Beginning $ 4,664,239
Changes for the year:
Interest on total OPEB liability 156,580
Effect of assumptions,changes or inputs (166,958)
Expected benefit payments (384,348)
Net change in total OPEB liability (394,726)
Total pension liability-ending $ 4,269,513
The liability has decreased since the last valuation. The fact that excess benefits increased less than anticipated since
the prior valuation led to a decrease in liability Further decreasing liability was the demographic experience of the
Plan over the past two years.
The Plan remains sensitive to demographic experience that deviates from expectations due to the small size of the
Plan membership. The Plan also remains sensitive to deviations in the excess benefit amounts from expectations.
Comprehensive Annual Financial Report(CAFR)-75
At December 31,2018,the City of Yakima reported deferred outflows of resources and deferred inflows of resources
related to pensions from the following sources:
Deferred Deferred
Outflows of Inflows of
Police Pension Resources Resources
Differences between expected and actual experience $ $
Changes of assumptions
Payments subsequent to the measurement date
Total $ — $
Deferred outflows of resources related to pensions resulting from the City of Yakima's payments subsequent to the
measurement date will be recognized as a reduction of the total pension liability in the year ended December 31,2018.
There are no deferred outflows as of December 31,2018. Other amounts reported as deferred outflows and deferred
inflows of resources related to pensions will be recognized in pension expense as follows:
Year ended December31
2019 $
2020
2021
2022
2023
Thereafter
NOTE 6- OTHER POSTEMPLOYMENT BENEFIT(OPEB)PLANS
AGGREGATE AMOUNTS -ALL OPEB PLANS
OPEB liabilities $ 50,940,702
Deferred inflows of resources (313,419)
OPEB expense/expenditures 564,083
In addition to providing pension benefits,the City provides certain health care(100%of medically necessary costs)
and life insurance benefits for retired employees under the City's Firemen's and Police Pensions as prescribed by state
statutes. Current employees under these two pensions become eligible for those benefits if they reach normal
retirement age while working for the City. The cost of retiree health care insurance and life insurance benefits is
recognized as an expenditure as claims are paid. Both plans are being funded 100%by the City on a pay as you go
basis. For 2018,the costs totaled$462,187 for the Firemen's Pension which has a total of 63 participants currently
eligible to receive benefits and$409,955 for the Police Pension which has a total of 59 participants currently eligible to
receive benefits.
LEOFF 1 OPEB
Under RCW law,retiree medical,hospital,and nursing care,as long as a disability exists,are covered for any active
firefighter hired prior to March 1, 1970. For any retired officer hired prior to March 1, 1970,retiree medical,hospital,
and nursing care are covered at the discretion of the Retirement Board. Members retired prior to 1961 for reasons
other than duty disability are not eligible for retiree medical benefits during retirement. Under LEOFF Law,the
76-Comprehensive Annual Financial Report(CAFR)
necessary hospital,retiree medical,and nursing care expenses not payable by Workers' Compensation,Social Security,
etc. are covered for any active or retired LEOFF 1 member.
Employees are eligible to receive lifetime retiree medical benefits upon service retirement after age 50 with at least
five years of service. If they are not eligible to retire when leaving LEOFF,but have 20 years of service credit,they are
eligible for retiree medical benefits when pension benefits commence. Employees also receive lifetime benefits upon
disability.
Effective January 1,2007,the City began reimbursing dental costs up to an annual maximum of$500 for LEOFF I
Fire/Police employees.
Funding Policy
Funding for LEOFF retiree health care costs is provided entirely by the City as required by RCW. The City's funding
policy is based upon pay as you go financing requirements.
FIRE OPEB
Assumptions and Other Inputs
Projections of benefits for financial reporting purposes are based on the substantive plan(the plan as understood by
the employer and the plan members) and include the types of benefits provided at the time of each valuation. The
total OPEB liability was determined by an actuarial valuation as of the valuation date of January 1,2018,calculated
based on the discount rates below,and then projected to the measurement date of December 31,2018. There have
been no significant changes between the valuation date and fiscal year ends. If there were significant changes,an
additional analysis or valuation might be required.
The following presents the total OPEB liability of the City of Yakima calculated using the discount rate of 4.0 percent,
as well as what the OPEB liability would be if it were calculated using a discount rate that is 1 percentage point lower
(3.0%) or 1 percentage point higher (5.0%) that the current rate.
Current
Discount
1%Decrease Rate 1%Increase
(3.0%) (4.0%) (5.0%)
Total December 31,2018 OPEB liability $ 24,627,865 $ 21,471,567 $ 18,881,416
The following presents the total OPEB liability of the City of Yakima calculated using the current healthcare cost trend
rates, as well as what the OPEB liability would be if it were calculated using a discount rate that is 1 percentage point
lower or 1 percentage point higher that the current rate.
Current
Healthcare
Cost Trend
1%Decrease Rate 1%Increase
Total December 31,2018 OPEB liability $ 19,024,760 $ 21,471,567 $ 24,362,073
The number of inactive,retired members and survivors,covered by the benefit terms is 63. There are no active
members covered by the benefit terms.
Comprehensive Annual Financial Report(CAFR)-77
Changes in the Fire OPEB Liability
Total
OPEB
Liability
Fire OPEB
Total OPEB liability-Beginning $ 22,910,332
Interest on total OPEB liability 789 207
Effect of assumptions,changes or inputs (1,498,572)
Expected benefit payments (729,400)
Net change in total OPEB liability (1,438,765)
Total pension liability-ending $ 21,471,567
At December 31, 2018, the City of Yakima reported deferred outflows of resources and deferred inflows of resources
related to OPEB from the following sources:
Deferred Deferred
Outflows of Inflows of
Fire OPEB Resources Resources
Differences between expected and actual experience $ $
Changes of assumptions
Payments subsequent to the measurement date
Total $ $
Deferred outflows of resources of$0 resulting from payments subsequent to the measurement date will be recognized
as a reduction of the total OPEB liability in the year ended December 31, 2019. Other amounts reported as deferred
outflows and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows:
Year ended December31
2019 $
2020
2021
2022
2023
Thereafter
POLICE OPEB
Assumptions and Other Inputs
Projections of benefits for financial reporting purposes are based on the substantive plan(the plan as understood by
the employer and the plan members) and include the types of benefits provided at the time of each valuation. The
total OPEB liability was determined by an actuarial valuation as of the valuation date of January 1,2018,calculated
based on the discount rates below,and then projected to the measurement date of December 31,2018. There have
been no significant changes between the valuation date and fiscal year ends. If there were significant changes,an
additional analysis or valuation might be required.
The following presents the total OPEB liability of the City of Yakima calculated using the discount rate of 4.0 percent,as
well as what the OPEB liability would be if it were calculated using a discount rate that is 1 percentage point lower(3.0%)
or 1 percentage point higher (5.0%) that the current rate.
78-Comprehensive Annual Financial Report(CAFR)
Current
Discount
1%Decrease Rate 1%Increase
(3.0%) (4.0%) (5.0%)
Total December 31,2018 OPEB liability $ 24,231,506 $ 21,153,082 $ 18,319,384
The following presents the total OPEB liability of the City of Yakima calculated using the current healthcare cost trend
rates, as well as what the OPEB liability would be if it were calculated using a discount rate that is 1 percentage point
lower or 1 percentage point higher that the current rate.
Current
Healthcare
Cost Trend
1%Decrease Rate 1%Increase
Total December 31,2018 OPEB liability $ 18,766,002 $ 21,153,082 $ 23,964,198
The number of inactive,retired members and survivors,covered by the benefit terms is 59. There are no active
members covered by the benefit terms.
Changes in the Police OPEB Liability
Total
OPEB
Liability
Police OPEB
Total OPEB liability-Beginning $ 22,457,760
Interest on total OPEB liability 775,314
Effect of assumptions,changes or inputs (1,462,797)
Expected benefit payments (617,195)
Net change in total OPEB liability (1,304,678)
Total pension liability-ending $ 21,153,082
At December 31, 2018, the City of Yakima reported deferred outflows of resources and deferred inflows of resources
related to OPEB from the following sources:
Deferred Deferred
Outflows of Inflows of
Police OPEB Resources Resources
Differences between expected and actual experience $ $
Changes of assumptions
Payments subsequent to the measurement date
Total $ $
Deferred outflows of resources of$0 resulting from payments subsequent to the measurement date will be recognized
as a reduction of the total OPEB liability in the year ended December 31, 2019. Other amounts reported as deferred
outflows and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows:
Comprehensive Annual Financial Report(CAFR)-79
Year ended December31
2019 $
2020
2021
2022
2023
Thereafter
NON-LEOFF I OPEB
The City of Yakima provides to its retirees employer-provided subsidies associated with postemployment medical
benefits. Retirees eligible to receive pension benefit payments along with their qualifying dependents are eligible to
remain on the medical insurance plan up to Medicare eligible age 65,by self-paying the entire composite premium
rates which blend both active and inactive(i.e. retired) member claims history.
City members under the age of 65 are eligible for retiree medical benefits after becoming eligible for retirement
pension benefits (either reduced or full pension benefits). Spouses of retired members of Plan 1 of LEOFF under the
age of 65 are also eligible for benefits. Also,dependent children of retirees under the age of 25 are eligible for benefits.
Former members who are entitled to a deferred vested pension benefit are eligible to receive medical benefits after
pension benefit commencement. Spouses under age 65 of covered members are eligible for medical benefits after the
members'benefits terminate due to death or obtaining age 65.
Upon retirement,members are permitted to receive medical benefits. Retirees paid$770.65 per month for pre-65
Medical coverage for 2018. If a retiree chooses to cover his spouse and/or eligible family an amount of$1,525.80 per
month for pre-65 Medical coverage was paid in 2018.
Funding Policy
The funding policy is based upon the pay as you go financing requirements.
Projections of benefits for financial reporting purposes are based on the substantive plan(the plan as understood by
the employer and the plan members) and include the types of benefits provided at the time of each valuation. The
total OPEB liability was determined by an actuarial valuation as of the valuation date of January 1,2018,calculated
based on the discount rates below,and then projected to the measurement date of December 31,2018. There have
been no significant changes between the valuation date and fiscal year ends. If there were significant changes,an
additional analysis or valuation might be required.
The following presents the total OPEB liability of the City of Yakima calculated using the discount rate of 4.0 percent,as
well as what the OPEB liability would be if it were calculated using a discount rate that is 1-percentage point lower
(3.0%) or 1-percentage point higher (5.0%) that the current rate.
Current
Discount
1%Decrease Rate 1%Increase
(3.0%) (4.0%) (5.0%)
Total December 31,2018 OPEB liability $ 9,015,093 $ 8,316,041 $ 7,663,643
The following presents the total OPEB liability of the City of Yakima calculated using the current healthcare cost trend
rates,as well as what the OPEB liability would be if it were calculated using a discount rate that is 1-percentage point
lower or 1-percentage point higher that the current rate.
80-Comprehensive Annual Financial Report(CAFR)
Current
Healthcare
Cost Trend
1%Decrease Rate 1%Increase
Total December 31,2018 OPEB liability $ 7,292,910 $ 8,316,041 $ 9,537,521
The number of inactive,retired members and survivors,covered by the benefit terms is 8.There are no active
members covered by the benefit terms.
Changes in the Non-LEOFF OPEB Liability
Total
OPEB
Liability
Non-LEOFF OPEB
Total OPEB liability-Beginning $ 8,189,958
Service cost 563,641
Interest on total OPEB liability 299,553
Effect of assumptions,changes or inputs (343,848)
Expected benefit payments (393,263)
Net change in total OPEB liability 126,083
Total pension liability-ending $ 8,316,041
At December 31, 2018, the City of Yakima reported deferred outflows of resources and deferred inflows of resources
related to OPEB from the following sources:
Deferred Deferred
Outflows of Inflows of
Non-LEOFF OPEB Resources Resources
Differences between expected and actual experience $ $
Changes of assumptions (313,419)
Payments subsequent to the measurement date
Total $ $ (313,419)
Deferred outflows of resources of$0 resulting from payments subsequent to the measurement date will be recognized
as a reduction of the total OPEB liability in the year ended December 31, 2019. Other amounts reported as deferred
outflows and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows:
Year ended December31
2019 $ (30,429)
2020 (30,429)
2021 (30,429)
2022 (30,429)
2023 (30,429)
Thereafter (161,274)
Comprehensive Annual Financial Report(CAFR)-81
NOTE 7- SELF-INSURANCE
The City maintains Reserve Funds to provide for self-insurance coverage in the areas of Unemployment
Compensation,Medical/Dental coverage,and Workers' Compensation. In addition,the City maintains a Risk
Management Fund to provide for property,liability,and other coverage.
UNEMPLOYMENT COMPENSATION
In 1978,the City of Yakima established an Unemployment Compensation Reserve Fund to provide unemployment
compensation coverage for its employees,and thereby elected to participate with the State of Washington in a cost
reimbursement instead of monthly premium program. In doing so,the City retained its right to appeal awards and
determinations made by the State Department of Employment Security. The City has contracted with Equifax
Workforce Solutions to represent the City in appeal hearings and to provide audits of state awards.
The State of Washington invoices the City on a quarterly basis for reimbursement of claims which represent payment
of unemployment compensation and related administrative costs. Resources accrue to the Unemployment
Compensation Reserve Fund through monthly charges made to each Operating Fund based on employee earnings.
Normal accrual rates have been between.5 and .75 percent of gross payroll,while costs under the monthly premium
program would have been approximately three-percent of payroll. The City has achieved considerable savings.
Interfund premiums are based primarily upon the insured funds claims experience and are reported as quasi external
interfund transactions-these totaled$214,419 for 2018. The reserve balance at the end of 2018 was$135,443. No
incurred but not reported claims have been accrued as a liability.
MEDICAL &DENTAL COVERAGE
The City,in August, 1979,self-insured its medical and dental programs for all eligible employees(temporary
employees and employees hired to work less than half time are not eligible to participate in the plan). The City's
Human Resources Office administers the self-insured program and claims payments. The third party administrator is
Employee Benefit Management Services,Inc. (EBMS).
Each Operating Fund is charged an accrual amount per covered employee which would otherwise have been paid to
an insurance carrier. These amounts are determined by the City based upon recommendations made by HUB
International,the contracted broker. Factors considered by the broker include the amount of claims paid the previous
year,increases over prior years,claims administration costs,projected insurance industry inflation rates and the
status of the Fund's Reserve. Interfund premiums for 2018 were$10,090,406. The reserve balance at the end of 2018
was$985,829,after considering incurred but not reported claims of$1,902,947 that have been accrued as a liability.
In order to avoid catastrophic losses,the City reinsures the program by purchasing insurance known as"stop loss
insurance." Two types of"stop loss" insurance are purchased: 1) individual stop loss;and,2) aggregate stop loss,
with both provided through Optum/Unimerica. Under the individual stop loss insurance,the City pays the first
$250,000 of claims for an individual employee or dependent. Any charges accrued by an individual in excess of
$250,000 in a calendar year are thereafter reimbursed through the insurer. The aggregate stop loss is designed to
protect the City from multiple large claims which may not reach the individual stop loss attachment point($250,000).
The aggregate stop loss attachment point is calculated by determining the projected amount of claims for the year and
adding an additional 25%of that amount(125%of projected claims).
WORKERS COMPENSATION
The City self-insured its workers' compensation program for all employees except those covered by the LEOFF 1
Retirement System in July, 1984. This workers' compensation program provides coverage identical to the state
administered workers' compensation program;however,the City pays only the direct injury related costs and certain
administrative fees. The program is administered by the City's Human Resources Office with claims administration
and safety services provided by Intermountain Claims,Inc.
82-Comprehensive Annual Financial Report(CAFR)
Each operating fund is charged an appropriate accrual amount,per employee,based on rate requirements prescribed
by the State of Washington. Each year the reserve fund balance is reviewed to determine a contribution rate which
provides for an appropriate reserve. Interfund premiums to the fund were$1,575,196. The reserve balance at the end
of 2018 was negative$558,232 after considering,based on the claims manager's estimate,the accrual for incurred but
not reported claims of$450,000 at December 31,2018. In order to restore this fund balance,premiums were increased
for 2019 and an operating transfer from the General Fund was budgeted.
In order to avoid catastrophic losses,the City"reinsures"the program by purchasing insurance known as"stop loss"
insurance. This insurance is provided through Payne West Insurance under a policy purchased from Safety National
Casualty Corporation. Under the individual stop loss coverage,the City pays the first$650,000 of a claim and the
insurance company pays the balance for an individual claim or the balance up to a maximum of$25 million for
multiple claims arising from a single incident.
NOTE S-RISK MANAGEMENT
The City is exposed to various risks of loss related to torts;theft of,damage to,and destruction of assets;errors and
omissions;and natural disasters. The Risk Management Fund was established in 1986 to account for its risk
management program. Resources accrue to the fund through interfund premiums to operating funds for appropriate
insurance coverage and the replenishment and building of reserves for potential liability claims. City interfund
contributions to the Risk Management Reserve Fund were$4,053,199. The fund provides for administration,legal
services,and claims adjustment and for the purchase of property,general liability,and other insurance coverage.
Liabilities of the fund are reported when it is probable that a loss has occurred and the amount of the loss can be
reasonably estimated. Liabilities include an amount for claims that has been incurred but not reported. The result of
the process to estimate the claims liability is not an exact amount as it depends on many complex factors,such as
inflation,changes in legal doctrines,and damage awards. Accordingly,claims are reevaluated periodically to
consider recent claim settlement trends,inflation,and other economic or social factors. The estimate of the claims
liability also includes amounts for incremental claim adjustment expenses related to specific claims. Estimated
recoveries,for example from subrogation,are another component of the claims liability estimate. Based on these
factors,the claims manager's estimate of claims liability at December 31,2018,is$750,000.
The Risk Management fund balance was$526,631 at the end of 2018.
PROPERTY AND LIABILITY INSURANCE
Affiliated FM Insurance Company
The City of Yakima purchases property insurance and boiler and machinery insurance from Affiliated FM Insurance
Company covering loss or damage to City owned property from various perils including earthquake and flood.
Coverage—The policy is subject to a$100,000,000 limit per occurrence and a$100,000 per occurrence deductible.
Cities Insurance Association of Washington (CIAW)
Chapter 48.62 RCW authorizes the governing body of any one or more governmental entities to form together into or
join a program or organization for the joint purchasing of insurance,and/or joint self-insuring,and/or joint hiring or
contracting for risk management services to the same extent that they may individually purchase insurance,self-
insure,or hire or contract for risk management services. An agreement to form a pooling arrangement was made
pursuant to the provisions of Chapter 39.34 RCW,the interlocal Cooperation Act. The CIAW was formed on
September 1, 1988,when 34 cities in the state of Washington joined together by signing an interlocal Governmental
Agreement to pool their self-insured losses and jointly purchase insurance and administrative services. The City of
Yakima became an associate member effective December 14,2005,and became a member effective September 1,2010.
As of December 31,2018,there were over 200 members in the program.
Comprehensive Annual Financial Report(CAFR)-83
The City participates in the CLAW insurance pool administered by Canfield&Associates. The program provides the
following forms of joint self-insurance and excess coverage for its members: Property,including automobile
comprehensive and collision,equipment breakdown and crime protection,and liability,including general,automobile
and wrongful acts are included to fit members'various needs. The City purchases property and equipment
breakdown coverage separate from the pool.
Members contract to remain in the program for a minimum of one year,and must give notice before August 31
terminating participation the following September 1. The interlocal Agreement is renewed automatically each year.
In the event of termination,a member is still responsible for contributions to the program for any unresolved,
unreported,and in-process claims for the period they were a signatory to the interlocal Agreement.
A board of ten members is selected by the membership from three geographic areas of the state on a staggered term
basis and is responsible for conducting the business affairs of the program. The program has no employees. Claims
are filed by members with Canfield,which has been contracted to perform program administration,claims
adjustment and administration,and loss prevention for the program. Copies of the CIAW pool's annual report may
be obtained by writing to 451 Diamond Drive,Ephrata,WA 98823.
Coverage—The CIAW program acquires liability insurance through the Administrator,Clear Risk Solutions,and the
is subject to a per-occurrence self-insured retention of$100,000 per occurrence. Members are responsible for
individual deductibles,which vary by member. The City of Yakima has a$100,000 deductible,and the CIAW pool is
responsible for claims between$100,000 and$200,000. For the City of Yakima,insurance covers insured losses over
$200,000 to the limits of each policy. Since the program is a cooperative program,there is a joint liability among the
participating members towards the sharing of the$100,000 of the self-insured retention of the CIAW pool. The
program also purchases an Aggregate Stop Loss Policy to cap the total claims paid by the program in any one year.
Washington State Transit Insurance Pool (WSTIP)
WSTIP is a 25-member self-insurance program with public transit members who provide transit services and is
located in Olympia,Washington. The City of Yakima Transit Division is insured for liability insurance through the
WSTIP,and has been a member since September 1,2005. WSTIP supplies Yakima Transit auto liability,general
liability,and public officials'liability coverage.
The WSTIP was formed by Interlocal Agreement on January 1, 1989,pursuant to Chapters 48.61 and 39.34 RCW. The
purpose for forming WSTIP was to provide member Transit Systems programs of joint self-insurance,joint
purchasing of insurance and joint contracting for hiring of personnel to provide risk management,claims handling
and administrative services. Transit authorities joining the Pool must remain members for a minimum of 36 months;
a member may withdraw from the Pool after that time by giving 12 months'notice. The Pool underwriting and rate
setting policies have been established after consultation with actuaries. The Pool members are subject to a
supplemental assessment in the event of deficiencies. If the assets of the Pool were to be exhausted,members would
be responsible for the Pool's liabilities. WSTIP is regulated by the Washington State Risk Manager and audited yearly
by the Washington State Auditor.
Coverage—The City of Yakima Transit Division has liability coverage,which is not subject to a deductible amount,
and public official liability coverage,subject to a deductible amount of$5,000,with the WSTIP in Olympia,
Washington. The per occurrence and aggregate limits of liability of the liability coverage through WSTIP are
$20,000,000. Since joining on September 1,2005,the City of Yakima Transit Division has not presented any claims to
WSTIP that exceeded its coverage limits.
WSTIP LIABILITY COVERAGE
Risk Coverage Period Coverage
Auto liability 1/1/18-12/31/18 $20,000,000 per occurrence with a$0 deductible
General liability 1/1/18-12/31/18 $20,000,000 per occurrence with a$0 deductible
Public officials 1/1/18-12/31/18 $20,000,000 per claim/aggregate with a$5,000 deductible
84-Comprehensive Annual Financial Report(CAFR)
NOTE 9-LONG-TERM LIABILITIES, DEBT AND CAPITAL LEASES
The State law provides that debt cannot be incurred in excess of the following percentages of the value of the taxable
property of the City.
LEGAL DEBT PERCENTAGE
Limit by Cumulative
Section Limit
General purpose
Without a vote(includes capital leases) 1.5
With a vote 1.0% 2.5/ 2.5/
Utilities purpose 2.5% 5.01/0
Open space and parks facilities 2.5% 7.51/0
Total legal limit 7.51/0
The basic percentages for Section I are the maximum levels of indebtedness those sections may incur. However,
utility or parks indebtedness may each exceed 2.5%and reduce the general indebtedness margin. The percentages are
applied to the taxable assessed value(regular levies) of about$6.2 billion,resulting in the debt limits,as of December
31,2018,for the City as follows:
CUMULATIVE DEBT LIMITS
Assessed valuation of taxable property in the
City of Yakima-tax year 2018 $6,241,111,833
Without
a Vote With a Vote
General General Open Space
Purpose Purpose Utilities &Parks
1.5% +1.0%=2.5% +2.5%=5.0% +2.5%=7.5%
Legal limit-percent of assessed valuation $ 93,616,677 $ 156,027,796 $ 312,055,592 $ 468,083,387
Less:net outstanding indebtedness(see below) 31,667,261 31,667,261 31,667,261 31,667,261
Margin available $ 61,949,416 $ 124,360,535 $ 280,388,331 $ 436,416,126
Net outstanding indebtedness
Outstanding debt $ 44,593,314
Less:available resources to repay debt 12,926,053
Net outstanding indebtedness $ 31,667,261
There have been no material violations of finance related legal or contractual provisions in any of the funds of the
City. All bonded debt of the City is tax exempt. We believe the City to be in compliance with applicable IRS&SEC
regulations.
The accompanying schedule of long term debt provides a listing of the outstanding debt of the City and summarizes
the City's debt transactions for 2018.
Comprehensive Annual Financial Report(CAFR)-85
LONG-TERM LIABILITIES
Amounts
Balance Payments/ Balance Due Within Noncurrent
1/1/2018 Additions Retirements 12/31/2018 One Year Portion
Governmental activities
General obligation debt
Bonds $ 29,472,474 $ 15,950,000 $ 11,042,868 $ 34,379,606 $ 3,281,876 $ 31,097,730
Unamortized premimn(discount) 1,337,807 173,054 1,164,753 1,164,753
Intergovernmental loans 5,719,371 500,000 382,991 5,836,380 435,735 5,400,645
Lease purchase agreements 4,254,649 1,042,074 3,212,575 1,138,360 2,074,215
Net pension liability 25,182,500 (5,191,501) 19,990,999 19,990,999
Unfunded OPEB liability 51,749,616 (3,473,287) 48,276,329 48,276,329
Compensated absences 8,750,967 (117,471) 8,633,496 1,042,370 7,591,126
Total liabilities-governmental activities 126,467,384 7,667,741 12,640,987 121,494,138 5,898,341 115,595,797
Business-type activities
Revenue debt
Revenue bonds 13,360,000 1,575,000 11,785,000 1,400,000 10,385,000
Unamortized premimn(discount) 519,803 94,646 425,157 425,157
Intergovernmental loans 18,325,171 1,451,094 16,874,077 1,465,081 15,408,996
Net pension liability(restated) 7,551,580 (2,303,313) 5,248,267 5,248,267
Unfunded OPEB liability 1,808,446 855,927 2,664,373 2,664,373
Compensated absences 1,662,484 4,841 1,667,325 222,841 1,444,484
Noncurrent liabilities-business-type 43,227,484 (1,442,545) 3,120,740 38,664,199 3,087,922 35,576,277
Total noncurrent liabilities $ 169,694,868 $ 6,225,196 $ 15,761,727 $ 160,158,337 $ 8,986,263 $ 151,172,074
GENERAL OBLIGATION DEBT
General obligation bonds consist of serial and term bonds,to be retired through the fiscal year ending December 31,
2035. The City levies a special property tax;collects motel/hotel taxes,Business License fees,utility taxes;and
receives State sales tax credits and gas tax for the principal and interest payments due within a fiscal year and
provides the amounts in the respective Debt Service Fund.
In 2018,two bonds were refunded to take advantage of lower interest rates,the 2013 Streets bond and the 2015 Soccer
Complex bond. The city also issued new debt of approximately$8.0 million for the YMCA Aquatic Center.
GENERAL OBLIGATION BONDS
Average
Date of Annual
Final Interest Original Outstanding Debt
Maturity Rate Issue 12/31/18 Service
Regular property tax levy
2008 Fire ladder track 12/01/21 3.25%-4.0/ $ 760,000 $ 205,000 74,350
2014 Street resurfacing project 06/01/24 3.0/-5.0/ 13,140,000 8,640,000 1,648,711
2018 Street resurfacing project(refunding) 12/01/28 3.25%-3.85% 3,500,000 3,351,672 381,497
2018 Yakima sport complex(refunding) 06/01/35 4.85% 4,440,127 4,440,127 430,005
2018 aquatic center-YMCA 12/01/42 4.85% 8,009,873 8,009,873 601,181
Total regular property tax levy 29,850,000 24,646,672
86-Comprehensive Annual Financial Report(CAFR)
GENERAL OBLIGATION BONDS
Average
Date of Annual
Final Interest Original Outstanding Debt
Maturity Rate Issue 12/31/18 Service
Regular property tax levy/real excise tax
2007 Fire station West Valley rehab bond 05/01/22 4.0%S.0% 815,000 270,000 72,832
2007 Downtown revitalization project 05/01/22 4.0%S.0/ 1,490,000 490,000 132,459
2008 Third Ave/Mead/Walnut St project bond 12/01/19 3.25%-4.0% 2,190,000 230,000 241,200
Total regular property tax levy/real excise tax 4,495,000 990,000
Motel/hotel tax
2004 Cony center expansion bond ref 1996 11/01/19 2.0%-4.2% 4,175,000 335,000 387,168
Public Facilities District(state sales tax credit)
2007 Cony center addition refund 2002 05/01/26 4.0%S.0% 4,910,000 3,110,000 456,029
2009 Capitol Theatre expansion 12/01/32 3.0%-6.6% 7,035,000 4,980,000 529,031
Total Public Facilities District 11,945,000 8,090,000
Business licenses&real estate excise tax
2003 SunDome expansion 12/01/23 2.34%-4.72% 1,430,528 317,934 148,315
$ 51,895,528 $ 34,379,606
REVENUE BONDS
Water,Wastewater and Irrigation revenue bonds consist of serial and term bonds,to be retired through the fiscal year
ending December 31,2034. The principal and interest for the water and wastewater parity revenue bonds are
provided by the results of operations. Principal and interest on Irrigation System Bonds are provided by capital rates.
UTILITY REVENUE BONDS
Average
Date of Annual
Final Interest Original Outstanding Debt
Maturity Rate Issue 12/31/2018 Service
2004 Irrigation revenue bonds 09/01/34 2.0/-4.8/ $ 5,215,000 $ 3,530,000 $ 320,103
2008 Wastewater revenue bonds 11/01/27 4.0-5.0% 5,440,000 3,070,000 413,440
2012 Wastewater revenue bonds(refund 2003) 11/01/23 2.0%-4.0% 9,400,000 5,185,000 1,164,783
$ 20,055,000 $ 11,785,000
The following Schedule sets forth revenue debt service requirements to maturity(in thousands) and depicts both
bond and intergovernmental loans and contracts.
Comprehensive Annual Financial Report(CAFR)-87
REVENUE DEBT SERVICE
Bonded Notes&
Debt Interest Contracts Interest
2019 $ 1,400 $ 498 $ 1,465 $ 115
2020 1,460 441 1,466 106
2021 1,520 381 1,468 97
2022 1,575 319 1,392 88
2023 1,645 255 1,393 79
2024-2028 2,255 996 5,680 276
2029-2033 985 615 3,470 106
2034-2038 210 110 540 7
$ 11,050 $ 3,615 $ 16,874 $ 874
At December 31,2018,the City had$1.8 million in restricted net position for debt service for the enterprise funds.
These are in compliance with reserve requirements as contained in the various indentures.
INTERGOVERNMENTAL LOANS AND CONTRACTUAL AGREEMENTS
The City participated in a program administered by the States Department of Community Development on behalf of
the Public Works Board. The program provides financial assistance for general government activities,such as street/
bridge improvements,or proprietary activities,such as water or sewage projects. The City has several loans through
the Washington State Loan Programs as described in the following chart.
During 2018,the City borrowed$500,000 from Yakima County's Supporting Investment in Economic Development
(SIED) program to support the extension of water and wastewater infrastructure along River Road as a part of the
YMCA Aquatic Center project. Sales and use tax will be collected to repay the debt.
INTERGOVERNMENTAL LOANS
Maturity Maximum Outstanding
Interest Date Authorized 12/31/2018
General long-term debt
Arterial street gas tax
PC08-951-052-2009 Railroad grade separation 0.5% 07/01/28 $ 3,000,000 $ 1,651,003
2015 SIED Loan-2015 Yakima County SIED Loan 2.4% 06/01/23 307,000 270,342
2016 SIED Loan-2016 Yakima County SIED Loan 2.6% 06/01/27 900,000 841,512
2017 SIED Loan-YV Brewing Project 3.2% 06/01/23 61,580 61,580
2018 SIED Loan-River Road 3.8% 06/01/29 500,000 500,000
Real estate excise tax
L1000030-0-2010 Railroad grade separation 2.9% 06/01/34 1,229,295 1,046,943
General fund telephone utility tax-Yakima County
COMM Ctr 911-2014 City Portion of 911 Call Dispatch Center 2.0-3.5% 05/01/34 1,716,500 1,465,000
Sub-total general long-term debt 5,836,380
88-Comprehensive Annual Financial Report(CAFR)
INTERGOVERNMENTAL LOANS
Maturity Maximum Outstanding
Interest Date Authorized 12/31/2018
Revenue debt
Wastewater operating revenue
PW-01-691-071-2001 Pmitvale neighborhood Sewer 0.5% 07/01/21 1,466,250 232,875
PW-05-691-064-2005 River Road sewer 0.5% 07/01/25 2,307,000 869,720
PW-07-962-019-2007 Ultra violet disinfection 0.5% 07/01/27 2,300,000 1,092,500
PC-12-951-065-2012 Wastewater Treatment Plan 0.5% 06/01/32 5,000,000 3,498,029
PC-13-961-059-2012 Industrial Sewer main extensions 0.5% 06/01/37 2,000,000 1,545,455
L1100008-2011 Energy efficiency project 2.8% 03/31/33 516,192 412,231
L1200019-2012 Industrial waste anaerobic 2.6% 07/01/34 602,634 512,595
Water operating revenue
PW-03-691-027-2003 Naches WTP improvements 0.5% 07/01/23 2,559,775 673,625
SRF-04-65104-037-2005 Naches river WTP filter rehab 0.5% 10/01/25 894,380 329,509
PC-08-951-051-2009 New water well 0.5% 07/01/28 2,257,200 1,211,488
PC-13-961-074-2013 Automated reading system 0.3% 06/01/32 5,000,000 3,684,211
DM-11-952-038-2013 Design WIT lagoons 1.5% 10/01/34 3,480,000 2,811,840
Sub-total revenue debt 16,874,078
Total intergovernmental loans $ 22,710,458
The Public Works Trust Fund loans have a term not to exceed twenty years and require 1/19th of the original
principal plus interest to be paid each July 1st. These are subordinate to utility systems'parity debt and do not
require a full faith and credit pledge.
The following schedule sets forth the general obligation debt and intergovernmental loans and contracts,debt service
requirements including interest,to maturity (in thousands).
GENERAL OBLIGATION DEBT SERVICE
Bonded Notes&
Debt Interest Contracts Interest
2019 $ 3,282 $ 1,634 $ 436 $ 119
2020 2,817 1,507 470 146
2021 2,917 1,402 498 119
2022 2,954 1,288 510 108
2023 2,875 1,158 518 96
2024-2028 8,405 3,834 2,278 319
2029-2033 4,221 2,342 970 113
2034-2038 1,163 637 157 5
$ 28,634 $ 13,802 $ 5,837 $ 1,025
At December 31,2018,the City had$248,465 available in debt service funds to service the General Obligation Bonds
and notes.
There are a number of other limitations and restrictions contained in the various bond indentures. The City is in
compliance with all significant limitations and restrictions.
Comprehensive Annual Financial Report(CAFR)-89
LEASE PURCHASE AGREEMENTS
General Capital Assets
As part of the City's capital equipment budgeting program,selected items are obtained via lease purchase and
municipal lease/deferred purchase plans. Since the leases are financing agreements which transfer ownership to the
City at the end of the lease term,the City records the present value of future lease payments as a capital outlay
expenditure and as an offset to other financial sources in the year that the asset is received. The present value of
payments due in future periods is shown as a liability in the financial statements and the cost of the asset is recorded
in the financial statements.
On March 15,2011 the City of Yakima borrowed$576,847 using Washington State's Local Option Capital Lending
(LOCAL) program. The proceeds were used to purchase two Fire apparatus,approved by City Council on January 18,
2011. The certificates of participation have an all-inclusive financing cost of 3.02%and will be repaid annually over
the next 10 years out of General Fund.
On March 19,2013 the City of Yakima borrowed$310,414 using Washington State's Local Option Capital Lending
(LOCAL) program. The proceeds were used to purchase one Fire apparatus,approved by City Council on December
4,2012. The certificates of participation have an all-inclusive financing cost of 1.93%and will be repaid annually over
the next 10 years out of General Fund.
On August 16,2013 the City of Yakima borrowed$4,632,792 from Washington State's Local Option Capital Lending
(LOCAL) program. The proceeds were used to purchase 74 Police vehicles for expansion of the assigned Police
vehicle program approved by City Council on June 4,2013. The certificates of participation have an all-inclusive
financing cost of 1.619%and will be repaid annually over the next 6 years out of General Fund.
On September 28,2017 the City of Yakima borrowed$2,189,736 using Washington State's Local Option Capital
Lending(LOCAL) program. The proceeds are being used to add new lighting fixtures and upgrade existing fixtures,
approved by City Council on April 16,2013. The certificates of participation have an all-inclusive financing cost of
1.76%and will be repaid annually over the next 10 years out of General Fund. In 2018,due to ongoing legal issues
with the contractor for the LED Streetlights project,a substitution was requested and approved by the LOCAL
program to use a portion of the proceeds to finance Fire apparatus.
LEASED EQUIPMENT
Two fire apparatus $ 131,948
One fire apparatus 173,521
74 Police vehicles;70 air packs for fire service 854,571
Energy Project(Lighting) 863,934
Fire Aerial&Pump 1,188,600
Total $ 3,212,574
The following is a schedule of the future minimum lease payments under the above capital leases and the present
value of net minimum lease payments at December 31,2018,for the fiscal year listed:
90-Comprehensive Annual Financial Report(CAFR)
LEASE PAYMENTS
Due in 2019 $ 1,250,086
Due in 2020 373,916
Due in 2021 303,711
Due in 2022 303,453
Due in 2023 303,181
Due in 2024-2028 1,063,684
Total minimum lease payments 3,598,031
Less: Amount representing interest 385,457
Present value of minimum lease payments $ 3,212,574
UNFUNDED POST EMPLOYMENT BENEFIT LIABILITIES
An initial actuarial evaluation was performed as of January 1,2018. By State statute,the City is required to provide
health care benefits for certain retired police officers and firefighters. The City's self-insured medical plan allows
retirees and the eligible dependents to self-pay premiums using the same rate as active employees,until they reach
age 65,thereby creating an"implicit rate subsidy". All three of the programs are pay as you go.
OUTSTANDING LIABILITIES
Balance Balance
1/1/18 Additions 12/31/18
OPEB Fire-medical $ 22,910,332 $ (1,438,765) $ 21,471,567
OPEB Police-medical 22,457,760 (1,304,678) 21,153,082
OPEB Non-LEOFF-medical 8,189,958 126,095 8,316,053
Total $ 53,558,050 $ (2,617,348) $ 50,940,702
Note: Beginning balances were restated as a result of the GASB 75 implementation.
The Police OPEB and Fire OPEB are paid out of a department in the General Fund. The non-LEOFF retiree benefits
are being paid annually through the Employees Health Benefit Reserve fund. The unfunded pension liability will be
adjusted annually to the actuarially determined contribution.
See Note 5 for additional information on the pension funds,and Note 6 for additional information on Other Post-
Employment Benefits.
NOTE 10- CONTINGENCIES AND LITIGATIONS
The City participates in a number of federal and state assisted programs. These grants are subject to audit by the
grantors or their representatives. Such audits could result in requests for reimbursement to grantor agencies for
expenditures disallowed under the terms of the grants. City management believes that such disallowances,if any,
will be immaterial.
SECTION 108 LOAN PROGRAM
In 2003,the City was authorized to administer a Housing and Urban Development(HUD) Section 108 Loan program.
HUD authorized the City to lend up to a maximum of$6.945 million in two separate loan pools ($4 million in 2003
and$2.945 million in 2005). These federal loans were available for the purpose of funding property rehabilitation for
economic development activities that create new jobs within the target area. As of December 31,2018,the City had
Comprehensive Annual Financial Report(CAFR)-91
approved all its authorized maximum Section 108 loans of$6.945 million. The nature of this program is the City
approves qualified projects for the loan within HUD guidelines and acts as a conduit for HUD funds. The loan
proceeds flow directly to the ultimate Corporate Borrower. Payments flow from the Corporate Borrower to the City's
Custodian and then to HUD. The loans are on an amortization schedule from 10 years to 25 years. The HUD contract
specifically provides that the loans are not full faith and credit obligations of the City,but instead,future Community
Development Block Grant(CDBG) allocations are pledged on these loans. The City has entered into agreements to
collateralize their position within HUD underwriting guidelines. In 2005,one of the loans was defeased and another
defeased in 2009. Additionally,the City has been awarded a$1.0 million Economic Development Initiative (EDI)
grant from HUD as a protection in case of a default. As of December 31,2018,there is only one HUD 108 loan
remaining.
POTENTIAL LITIGATION
The City is a defendant in various legal actions and claims that arise during the normal course of business,some of
which,but not all,are covered by insurance. Although certain lawsuits and claims are significant in amount,the final
dispositions are not determinable and,in the opinion of City management,the final outcome of these matters,taken
individually or in the aggregate,are not expected to have a material adverse effect on the governmental operations or
financial position of the City. The City has provided for reserves to address these matters. City management believes
these reserves and/or insurance are adequate to cover such matters.
NOTE 11 -FUND BALANCE CLASSIFICATION
The City's fund balances are classified in accordance with Governmental Accounting Standards Board Statement
Number 54(GASB 54),Fund Balance Reporting and Governmental Fund Type Definitions,which require the City to
classify its fund balances based on spending constraints imposed on the use of resources. The following is a schedule
of the ending fund balance as of December 31,2018.
FUND BALANCE
Neighborhood Other
General Development Gov't
Fund Balance Fund Fund Funds Total
Nonspendable
Permanent fund $ 10,000 $ $ 914,891 $ 924,891
Restricted
Emergency programs 9,414 9,414
Arterial street construction&maintenance 2,147,691 2,147,691
Housing&economic development 862,584 70,321 932,905
Public safety 1,904,013 1,904,013
Debt service 239,732 239,732
Capital improvements 5,678,845 5,678,845
Tourism&conventions 1,770,123 1,770,123
Total restricted 862S84 11,820,139 12,682,723
92-Comprehensive Annual Financial Report(CAFR)
FUND BALANCE
Neighborhood Other
General Development Gov't
Fund Balance Fund Fund Funds Total
Committed
Public safety&emergency programs 1,437,988 1,437,988
Community relations 741,290 741,290
Parks and recreation 283,427 283,427
Streets 239,757 239,757
Capital improvements 2,230,389 2,230,389
Other 118,508 118,508
Tourism&conventions 65,036 65,036
Total committed 1,437,988 3,678,407 5,116,395
Assigned
Parks and recreation 4,021,729 4,021,729
Streets 951,821 951,821
Public safety&emergency programs 838,045 838,045
Debt service 8,733 8,733
Tourism&conventions 149,087 149,087
Total assigned 5,969,415 5,969,415
Unassigned 7,613,885 (532,523) 7,081,362
Total fund balance $ 9,061,873 $ 862,584 $ 21,850,329 $ 31,774,786
NOTE 12 - SEGMENT INFORMATION
WATER AND WASTEWATER UTILITIES
For the purposes of revenue bond debt issuance,the water and wastewater utilities are combined in a single segment
(i.e.,the System). Therefore,investors in the revenue bonds rely on the revenue generated by both activities for
repayment. Investors in irrigation revenue bonds rely solely on the revenue generated from the irrigation utility for
repayment. Summary financial information for the System and irrigation utility follows.
SYSTEM INFORMATION
Water/
Wastewater Irrigation
Condensed statement of net position
Assets
Current Assets $ 30,681,026 $ 5,335,572
Restricted assets 1,835,000
Capital assets,net of accumulated depredation 113,504,030 17,607,338
Total assets 146,020,056 22,942,910
Deferred outflows of resources 734,663 44,697
Total assets&deferred outflows of resources 146,754,719 22,987,607
Comprehensive Annual Financial Report(CAFR)-93
SYSTEM INFORMATION
Water/
Wastewater Irrigation
Liabilities
Current liabilities 5,500,183 297,816
Noncurrent liabilities 27,599,159 3,764,633
Total liabilities 33,099,342 4,062,449
Deferred inflows of resources 1,092,038 108,524
Total liabilities&deferred inflows of resources 34,191,380 4,170,973
Net position
Net investment in capital assets 87,930,776 14,139,889
Restricted 1,835,000
Unrestricted 22,797,563 4,676,744
Total net position $ 112,563,339 $ 18,816,633
Condensed statement of revenues,expenses and changes in net position
Operating revenues
Charges and fees for services $ 32,258,643 $ 3,096,850
Other operating revenue 64,883 4,801
Total operating revenues 32,323,526 3,101,651
Operating expenses
Personnel services 7,155,536 696,534
Materials and supplies 1,664,210 86,888
Contractual services 15,609,754 923,348
Depredation 6,171,456 446,832
Total operating expense 30,600,956 2,153,602
Operating income(loss) 1,722,570 948,049
Nonoperating revenues(expense)
Grants and subsidies 407,601 Interest revenue 2,625 500
Interest&other debt service costs (439,695) (174,965)
Gain(loss)disposal of capital assets 5,074
Total nonoperating revenue(exp) (24,395) (174,465)
Income(loss)before conts&transfers 1,698,175 773,584
Capital contributions 1,841,078
Operating transfers(net) (426,329) (30,000)
Change in net position 3,112,924 743,584
Net position-beginning 109,850,850 18,113,088
Prior Period Adjustment due to GASB 75 (400,434) (40,037)
Net position-ending $ 112,563,340 $ 18,816,635
94-Comprehensive Annual Financial Report(CAFR)
SYSTEM INFORMATION
Water/
Wastewater Irrigation
Condensed statement of cash flows
Net cash provided(used)
Operating activities $ 7,421,923 $ 1,270,618
Capital financing activities (5,265,680) (357,955)
Investing activities 5,392,509 616,616
Net increase(decrease) 7,548,752 1,529,279
Beginning cash and cash equivalents 3,559,726 236,897
Ending cash and cash equivalents $ 11,108,478 $ 1,766,176
NOTE 13 — TAX ABATEMENTS
The City of Yakima provides tax abatements through two programs,the High Unemployment County
Sales&Use Tax Deferral for Manufacturing Facilities referenced in RCW 82.60,and the Multi-Unit Urban
Housing Property Tax Exemption referenced in RCW 84.14.020.
High Unemployment County Sales&Use Tax Deferral for Manufacturing Facilities
To encourage public and private investment in low-income areas with high rates of unemployment,sales
and use tax arising from certain construction and equipment purchases for new and expanding
manufacturers,persons conditioning vegetable seeds,research and development,and commercial testing
for manufacturers in a Community Empowerment Zone (CEZ) may be permanently deferred if the project
meets specific criteria per chapter 82.60 RCW. To qualify for deferral, the business must submit an
application to DOR prior to completion of construction or the business taking possession of the machinery
and equipment. Approved applicants will receive a sales and use tax deferral certificate,which allows
vendors and contractors to sell to the approved applicant without charging sales tax.
Deferred taxes need not be repaid if the business fills at least one permanent full-time position for each
$750,000 investment with a resident of the CEZ by the end of the second calendar year following the year
in which the project is certified as operationally complete. Failure to meet the employment requirement
causes all deferred taxes to become immediately due. Each recipient of a deferral of taxes must file a
complete annual survey with DOR for eight years following the year in which the project is operationally
complete. If DOR finds that the project does not qualify for the deferral,all deferred taxes become
immediately due.
Multi-Unit Urban Housing Property Tax Exemption
RCW 84.14.020 allows for a property tax exemption to improve residential opportunities,including
affordable housing opportunities,in urban centers. In order to qualify for the exemption, the new or
rehabilitated multiple-housing unit must be located in a targeted residential area designated by the city or
county,provide for a minimum of 50 percent of the space for permanent residential occupancy,meet all
construction and development regulations of the city, and be completed within three years from the date of
approval of the application. To qualify as a rehabilitated unit,the property must also fail to comply with
one or more standards of the applicable state or local building or housing codes on or after July 23, 1995.
Comprehensive Annual Financial Report(CAFR)-95
The property owner must apply for the exemption certificate with the city where the property is located
before beginning construction. If the city approves the application, the exemption certificate will be issued
after the owner certifies all requirements have been met upon completion of the project. If the application
for a tax exemption certificate was submitted before July 22,2007, the property is exempt for ten years. If
the application for a tax exemption certificate was submitted on or after July 22,2007,the property is
exempt for eight years, unless the applicant commits to renting or selling at least 20 percent of the units as
affordable housing units to low and moderate-income households,making it exempt for 12 years. Each tax
exemption certificate recipient must submit an annual report to the city If the city determines that a
portion of the property no longer meets the exemption requirements,the tax exemption is canceled and a
lien will be placed on the land for the additional real property tax on the value of the non-qualifying
improvements,plus a 20 percent penalty,and interest.
Amount
of Taxes
Tax Abatement Program Abated
High Unemployment County Sales&Use Tax deferral for manufacturing facilities $ 41,919
Multi-Unit Urban Housing Property Tax exemption 9,498
Total $ 51,417
NOTE 14— OTHER DISCLOSURES
RELATED PARTIES
By Interlocal Agreement,the City of Yakima serves as fiscal agent for the Yakima Consortium for Regional Public
Safety(Yakcorps),a separate legal entity which serves to the benefit of citizens within the service area of participating
jurisdictions. The 2011 agreement provides for the structure,governance,operations,funding and accounting for
public safety activity within the jurisdictions of participating county,cities and fire districts: Grandview,Granger,
Mabton,Moxee,Prosser,Selah,Sunnyside,Tieton,Toppenish,Union Gap,Yakima,Wapato,Zillah,Fire District#1
(Highland),Fire District#3 (Naches),Fire District#4 (East Valley),Fire District#5 (Lower Valley),Fire District#6
(Gleed),Fire District#7(Glade),Fire District#9 (Naches Heights),Fire District#12 (West Valley),Nile Fire District,
and County of Yakima . All local public safety-related governmental agencies/jurisdictions whose governing body is
located within the geographic boundaries of Yakima County are eligible to become a member of the consortium. The
Executive Board of the Yakcorps consortium consists of seven member representatives of which one is the Mayor of
the City of Yakima. The Operations Board of the Yakcorps consortium consists of eleven member representatives,of
which three are the City's Police Chief,Fire Chief and 911 Director. Funding resources consist of annual assessments
to the member agencies to allocate annual budgeted expenditures to operate and maintain a county-wide multi-
discipline public safety system.
96-Comprehensive Annual Financial Report(CAFR)
REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Proportionate Share of the Net Pension Liability-Added in 2015 per GASB 68 which required cost-
sharing employers to present a 10 year schedule containing the net pension liability and certain related ratios. This
information was added to improve transparency,and offer an indication of the extent to which the total pension
liability is covered by resources held by the pension plan.
Schedule of Employer Contributions -Also added in 2015 per GASB 68,this schedule was added to provide
measures to evaluate decisions related to the assessment of contribution rates and help to provide information
about whether employers and nonemployer contributing entities,if applicable,are keeping pace with those
contribution rates. This schedule will incorporate 10 years of information by 2025.
Schedule of Changes in Net Pension Liability and Related Ratios -A ten year schedule of changes in the total
pension liability,along with the ratios of net position as a percent of total pension liability and net pension liability
as a percent of covered payroll.
Schedule of Changes in Total OPEB Liability and Related Ratios-A ten year schedule of changes in the total
OPEB pension liability,along with the ratios of net position as a percent of total pension liability and net pension
liability as a percent of covered payroll.
Comprehensive Annual Financial Report(CAFR)-97
CITY OF Yakima
SCHEDULE OF PROPORTIONATE SHARE OF NET PENSION LIABILITY
As of June 30
Last 10 Fiscal Years* Page 1 of 2
PERS 1 2015 2016
Employer's proportion of the net pension liability(asset) 0.2473% 0.2437%
Employer's proportionate share of the net pension liability $ 12,938,339 $ 13,085,797
Covered Payroll-2015,2016,and 2017 as restated 22,406,624 28,675,000
Employer's proportionate share of the net pension liability as a percentage of covered employee payroll 58.0% 46.0%
Plan fiduciary net position as a percentage of the total pension liability 59.1% 59.0%
PERS 2/3
Employer's proportion of the net pension liability(asset) 0.2942% 0.2903%
Employer's proportionate share of the net pension liability $ 10,512,470 $ 14,618,037
Covered Payroll 21,024,500 27,400,579
Employer's proportionate share of the net pension liability as a percentage of covered employee payroll 50.0% 53.3%
Plan fiduciary net position as a percentage of the total pension liability 89.2% 85.8%
PSERS
Employer's proportion of the net pension liability(asset) 0.2462% 0.2172%
Employer's proportionate share of the net pension liability $ 44,929 $ 92,291
Covered Payroll 718,242 705,303
Employer's proportionate share of the net pension liability as a percentage of covered employee payroll 6.3% 13.1%
Plan fiduciary net position as a percentage of the total pension liability 95.1% 90.4%
LEOFF 1
Employer's proportion of the net pension liability(asset) 0.2686% 0.2642%
Employer's proportionate share of the net pension liability $ (3,237,356) $ (27,222,428)
Employer's proportionate share of the net pension liability as a percentage of covered employee payroll
Plan fiduciary net position as a percentage of the total pension liability 127.4% 123.7%
LEOFF 2
Employer's proportion of the net pension liability(asset) 0.7426% 0.7434%
Employer's proportionate share of the net pension liability $ (7,632,597) $ (4,323,611)
State's proportion of the net pension liability(asset)associated with the employer (719,689) (741,394)
Total $ (8,352,286) $ (5,065,005)
Covered Payroll $ 21,561,911 $ 22,519,542
Employer's proportionate share of the net pension liability as a percentage of covered employee payroll (35.4%) (19.2%)
Plan fiduciary net position as a percentage of the total pension liability 111.7% 106.0%
*Until a full 10-year trend is compiled,only information for those years available is presented. The City of Yakima has no current LEOFF I
employees.
The Notes to the Financial Statements,found in Basic Financial Section,are an integral part of this statement
98-Comprehensive Annual Financial Report(CAFR)
CITY OF Yakima
SCHEDULE OF PROPORTIONATE SHARE OF NET PENSION LIABILITY
As of June 30
Last 10 Fiscal Years* Page 2 of 2
2017 2018
0.2396% 0.2304%
$ 11,370,630 $ 10,291,797
29,549,697 30,300,450
38.5% 34.0%
61.2% 63.2%
2.8844% 0.2771%
$ 10,021,946 $ 4,731,133
29,284,000 29,077,617
34.2% 16.3%
91.0% 96.8%
0.2143% 0.2135%
$ 41,981 $ 2,645
765,000 845,912
5.5% 0.3%
96.3% 99.8%
0.2625% 0.2633%
$ (3,982,551) $ (4,781,106)
136.0% 144.4%
0.7399% 0.7097%
$ (10,267387) $ (14,409,269)
(6,660,262) (9,329,730)
$ (16,927,649) $ (23,738,999)
$ 23,238,000 $ 23,520,795
44.2% 61.2%
113.4% 118.5%
The Notes to the Financial Statements,found in Basic Financial Section,are an integral part of this statement
Comprehensive Annual Financial Report(CAFR)—99
CITY OF Yakima
SCHEDULE OF EMPLOYER CONTRIBUTIONS
For the year ended December 31
Last 10 Fiscal Years* Page 1 of 2
PERS 1 2015 2016
Statutorily or contractually required contributions $ 1,263,237 $ 1,432,792
Contributions in relation to the statutorily or contractually required contributions (1,263,237) (1,432,792)
Contribution deficiency(excess) $ $
Covered payroll $ 28,060,087 $ 29,271,148
Contributions as a percentage of covered employee payroll 4.5% 4.9%
PERS 2/3
Statutorily or contractually required contributions $ 1,510,959 $ 1,740,727
Contributions in relation to the statutorily or contractually required contributions (1,510,959) (1,740,727)
Contribution deficiency(excess) $ $
Covered payroll $ 26,793,741 $ 27,400,579
Contributions as a percentage of covered employee payroll 5.6% 6.4%
PSERS
Statutorily or contractually required contributions $ 46,106 $ 48,978
Contributions in relation to the statutorily or contractually required contributions (46,106) (48,978)
Contribution deficiency(excess) $ $
Covered payroll $ 712,214 $ 705,303
Contributions as a percentage of covered employee payroll 6.5% 6.9%
LEOFF 2
Statutorily or contractually required contributions $ 1,120,514 $ 1,152,459
Contributions in relation to the statutorily or contractually required contributions (1,120,514) (1,152,459)
Contribution deficiency(excess) $ $
Covered payroll $ 22,188,444 $ 22,519,542
Contributions as a percentage of covered employee payroll 5.0% 5.1%
*Until a full 10-year trend is compiled,only information for these years available is presented. No assets are accumulated in a trust that meets the
criteria for GASB 68.
The Notes to the Financial Statements,found in Basic Financial Section,are an integral part of this statement
100-Comprehensive Annual Financial Report(CAFR)
CITY OF Yakima
SCHEDULE OF EMPLOYER CONTRIBUTIONS
For the year ended December31
Last 10 Fiscal Years* Page 2 of 2
2017 2018
$ 1,489,000 $ 1,570,927
(1,489,000) (1570,927)
$ — $
$ 29,079,000 $ 30,471,519
5.1% 5.2
$ 1,930,423 $ 2,194,199
(1,930,423) (2,194,199)
$ — $
$ 28,706,000 $ 29,256,142
6.7% 7.5%
$ 52,963 $ 57,599
(52,963) (57,599)
$ — $
$ 800,000 $ 840,693
6.6% 6.6%
$ 1,198,134 $ 1,233,450
(1,198,134) (1,233,450)
$ — $
$ 23,417,000 $ 23,473,737
5.1% 5.3%
The Notes to the Financial Statements,found in Basic Financial Section,are an integral part of this statement
Comprehensive Annual Financial Report(CAFR)—101
CITY OF Yakima
SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS
FIRE &POLICE PENSIONS
For the Year Ended December 31
Last 10 Fiscal Years* Page 1 of 1
2017 2018
Fire Pension
Total pension liability-beginning $ 6,902,294 $ 6,635,284
Interest 247,672 221,918
Differences between expected and actual experience (43,347)
Changes of assumptions 129,589 (233,241)
Benefit payments,including refunds of contributions (600,924) (594,678)
Net change in total pension liability (267,010) (606,001)
Total pension liability-ending $ 6,635,284 $ 6,029,283
Covered payroll
Police Pension
Total pension liability-beginning $ 5,381,844 $ 4,664,239
Interest 194,378 156,580
Differences between expected and actual experience (604,017)
Changes of assumptions 92,572 (166,958)
Benefit payments,including refunds of contributions (400,538) (384,348)
Net change in total pension liability (717,605) (394,726)
Total pension liability-ending $ 4,664,239 $ 4,269,513
Covered payroll
*The City implemented GASB 73 for the year ended December 31,2017. This schedule is presented to illustrate the requirement to show
information for 10 years. However,recalculations of prior years are not required,and if prior years are not reported in accordance with the current
GASB standards,they should not be reported.
The Notes to the Financial Statements,found in Basic Financial Section,are an integral part of this statement
102-Comprehensive Annual Financial Report(CAFR)
CITY OF Yakima
SCHEDULE OF CHANGES IN TOTAL OPEB LIABILITY AND RELATED RATIOS
For the Year Ended December 31
Last 10 Fiscal Years* Page 1 of 1
2018
LEOFF 1 Fire
Total OPEB liability-Beginning $ 22,910,332
Interest on total OPEB liability 789,207
Effect of assmnptions,changes or inputs (1,498,572)
Expected benefit payments (729,400)
Net change in total OPEB liability (1,438,765)
Total pension liability-ending $ 21,471,567
Covered payroll Total OPEB liability as a%of covered payroll n/a
LEOFF 1 Police
Total OPEB liability-Beginning $ 22,457,760
Interest on total OPEB liability 775,314
Effect of assmnptions,changes or inputs (1,462,797)
Expected benefit payments (617,195)
Net change in total OPEB liability (1,304,678)
Total pension liability-ending $ 21,153,082
Covered payroll Total OPEB liability as a%of covered payroll n/a
Non-LEOFF
Total OPEB liability-Beginning $ 8,189,958
Service cost 563,641
Interest on total OPEB liability 299,553
Effect of assmnptions,changes or inputs (343,848)
Expected benefit payments (393,263)
Net change in total OPEB liability 126,083
Total pension liability-ending $ 8,316,041
Covered payroll Total OPEB liability as a%of covered payroll n/a
*Until a full 10-year trend is compiled,only information for these years available is presented. No assets are accumulated in a trust that meets the
criteria in paragraph 4 of GASB 75.
The Notes to the Financial Statements,found in Basic Financial Section,are an integral part of this statement
Comprehensive Annual Financial Report(CAFR)—103
104-Comprehensive Amoral Financial Report(CAFR)
CITY OF Yakima
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
December 31,2018 Page 1 of 1
Special Debt Capital Permanent
Revenue Service Project Fund Total
Assets
Cash and cash equivalents $ 6,617,917 $ 206,792 $ 7,011,930 $ 684,225 $ 14,520,864
Cash with fiscal agent 26,602 135,898 162,500
Investments 2,863,686 7,693,800 10,557,486
Receivables,net allowance for uncollectible accounts
Taxes 347,857 41,673 78,932 468,462
Accounts 238,368 16,023 171 254,562
Notes and contracts receivable 49,129 49,129
Due from other governments 458,307 - 667 - 458,974
Due from other funds - - 200,000 - 200,000
Inventories and prepayments 230,495 230,495
Total assets $ 10,832,361 $ 248,465 $ 15,137,250 $ 684,396 $ 26,902,472
Liabilities
Accounts payable $ 999,547 $ $ 710,390 $ $ 1,709,937
Retainage payable 15,033 2,267 17,300
Accrued salaries and benefits 1,064,297 1,064,297
Custodial accounts 601,387 887,131 1,488,518
Due to other governments 2,770 - 5 - 2,775
Due to other funds 300,000 200,000 500,000
Total liabilities 2,983,034 1,799,793 4,782,827
Deferred inflows of resources
Deferred unavailable revenue/taxes 212,720 212,720
Unavailable revenue and notes 56,531 65 56,596
Total deferred inflows of resources 269,251 65 269,316
Total liabilities&deferred inflows of resources 3,252,285 1,799,858 5,052,143
Fund balance
Nonspendable 230,495 684,396 914,891
Restricted 5,901,562 239,732 5,678,845 11,820,139
Committed 1,448,019 2,230,389 3,678,408
Assigned 8,733 5,960,682 5,969,415
Unassigned (532,523) (532,523)
Total fund balance 7,580,076 248,465 13,337,393 684,396 21,850,330
Total liabilities,deferred inflows&fund balances $ 10,832,361 $ 248,465 $ 15,137,251 $ 684,396 $ 26,902,473
The Notes to the Financial Statements,found in Basic Financial Section,are an integral part of this statement
Comprehensive Annual Financial Report(CAFR)-105
CITY OF Yakima
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND
BALANCES -NONMAJOR GOVERNMENTAL FUNDS
For the Year Ended December 31,2018 Page 1 of 1
Special Debt Capital Permanent
Revenue Service Project Fund Total
Revenues
Taxes and assessments $ 10,394,088 $ 2,822,644 $ 4,597,657 $ $ 17,814,389
Licenses and permits 646,993 646,993
Intergovernmental revenues 3,288,496 101,926 128,615 3,519,037
Charges for services 6,991,454 99,200 17,099 7,107,753
Contributions and donations 10,921 919,034 929,955
Investment earnings 15,452 750 69,147 12,000 97,349
Other revenue 964,404 147,107 1,111,511
Total revenues 22,311,808 2,925,320 5,960,760 29,099 31,226,987
Expenditures
Current
General government 869,326 83,971 953,297
Public safety 5,249,241 260,921 5,510,162
Utilities 267,588 267,588
Transportation 4,814,287 382,216 5,196,503
Economic environment 1,068,262 13,364 1,081,626
Public health services 574,469 574,469
Cultural and recreational 5,851,082 299,129 6,150,211
Capital outlay
General government 16,603 42,347 58,950
Public safety 426,610 426,610
Transportation 773,145 524,802 1,297,947
Cultural and recreational 4,825,378 4,825,378
Debt service
Principal 222,895 3,155,875 217,846 3,596,616
Interest and related charges 165,250 1,342,922 67,847 1,576,019
Total Expenditures 19,872,148 4,498,797 7,144,431 31,515,376
Excess(deficiency)of revenue over(under)expenditure 2,439,660 (1,573,477) (1,183,671) 29,099 (288,389)
Other financing(sources)uses
Transfers in 2,156,840 9,461,379 2,144,397 13,762,616
Transfers out (3,512,992) (8,533,166) (12,000) (12,058,158)
Proceeds from issuance of long-term debt 500,000 15,950,000 16,450,000
Payments to refunded debt (7,886,993) (7,886,993)
Sale of capital assets 207 37,385 37,592
Total other financing sources(uses) (855,945) 1,574,386 9,598,616 (12,000) 10,305,057
Special and extraordinary items (1,747,309) (1,747,309)
Net change in fund balance 1,583,715 909 6,667,636 17,099 8,269,359
Fund balance-beginning 5,996,359 247,557 6,669,759 667,296 13,580,971
Fund balance-ending $ 7,580,074 $ 248,466 $ 13,337,395 $ 684,395 $ 21,850,330
The Notes to the Financial Statements,found in Basic Financial Section,are an integral part of this statement
106-Comprehensive Annual Financial Report(CAFR)
NONMAJOR SPECIAL REVENUE FUNDS
Economic Development Fund(123) -Established in 1991 to account for payments received by Housing and Urban
Development UDAG grant recipients to be used for future economic development within the City.
Community Relations Fund (125)-Created by Ordinance No. 2510 in 1981 to pay expenses incurred by the City in
administering Cable TV franchises for Cable TV operators doing business in the City and formulate community
access television programming.
Parks and Recreation Fund (131)-Accounts for the Metropolitan Park District which was made a part of the
General Fund in 1970 by Ordinance 1276. In 1971 it became a separate fund primarily supported by program fees
and tax levies.
Streets Fund (141)-While not a self-supporting fund,it is required to be a separate fund for the purpose of
accounting for the disbursement of the Motor Vehicle Fuel Tax revenues paid by the State of Washington to the City.
Primarily,the fund is used for maintenance of existing City streets and traffic signalization,supported by a portion
of the gas tax and an allocation of property taxes.
Arterial Street Fund (142)-Created for the purpose of maintaining existing arterial streets and constructing new
arterial streets out of moneys provided by the State from the one-half cent per gallon gas tax levied by the State for
this purpose.
Cemetery Fund (144)-A self-supporting fund for the operation of the Tahoma Cemetery. Revenues are provided
through the sale of grave sites and other services;it receives interest from Cemetery Trust Fund investments.
Disbursements from this fund are for all expenses for the care of lots,blocks or parts thereof under endowment or
annual care.
Emergency Services Fund (150) -Established in 1991 when a special property tax levy was approved by the voters
to provide for emergency medical services.
Public Safety Communications Fund (151)-Created in 1996 to consolidate 9-1-1 call taking and public safety
dispatch both for Yakima County and the City. This is supported by 9-1-1 and dispatching contracts with
neighboring jurisdictions,and telephone utility tax transferred from the General Fund.
Police Grants (152) -The Police Grants Fund was created in 2009 to account for supplemental police grant-funded
programs,including the COPS Hiring Recovery Program. Additionally,the City/County Narcotics Unit(CCNU)
was dissolved in the fall of 2009;therefore,the City's portion of drug related seized and forfeited assets will be
managed through this fund.
Downtown Yakima Business Improvement District(DYBID) Fund (161)-Formed to record the operating receipts
and expenditures for Parking and Business Improvement. The major source of revenue is the assessment levied on
businesses. Expenditures include costs associated with enhanced maintenance and other promotion of the
Downtown area.
Trolley Fund (162) -Accounts for the operations,maintenance and capital improvements of the Trolley System. The
major source of revenue is grants.
Front Street Parking&Business Improvement Area(PBIA) Fund (163)-Established in 1997 for the purpose of
assisting trade,economic viability and livability within the area. Revenues are derived from self-assessments on
businesses located within the boundaries.
Comprehensive Annual Financial Report(CAFR)-107
Tourist Promotion/Convention Center Fund (170) -Established in 1978 and centralizes all City expenditures for
the support of tourist and convention activities and publicity,including operational expenses of the city-owned
Convention Center.
Capitol Theatre Operating Fund (171)-Created in 1980 for the purpose of maintaining,managing,and operating
the Capitol Theatre.
Public Facilities District-Convention Center(172)-Created in 2002 to account for the revenues received from the
Yakima Regional Public Facilities District,which was established to expand the local convention center.
Tourism Promotion Area(173)-Created in 2005 by a self-assessment of the lodging industry to fund activities
designed to increase tourism and convention business within Yakima County.
Public Facilities District-Capitol Theatre (174)-Created in 2009 to account for the revenues received from the
Yakima Regional Public Facilities District,which was established for the expansion of the Capitol Theatre.
108-Comprehensive Annual Financial Report(CAFR)
CITY OF Yakima
COMBINING BALANCE SHEET
NONMAJOR SPECIAL REVENUE FUNDS
December 31,2018 Page 1 of 3
Economic Community Parks and Arterial
Dev Relations Recreation Streets Street
Assets
Cash and cash equivalents $ 619,706 $ 794,096 $ 490,701 $ 852,011 $ 764,633
Cash with fiscal agent 7,906 10,932
Investments 1,407,177
Receivables,net allowance for uncollectible accounts
Taxes 79,574 88,564
Accounts 630 21,181 1,520
Notes and contracts receivable
Due from other governments 3,629 350,000 62,345
Inventories and prepayments 230,495
Total assets $ 619,706 $ 794,726 $ 602,991 $ 1,533,522 $ 2,234,155
Liabilities
Accounts payable $ 257 $ 1,807 $ 46,428 $ 710,973 $ 71,432
Retainage payable 15,033
Accrued salaries and benefits 51,379 185,612 262,027
Custodial accounts 549,128
Due to other governments 250 2,067 187
Due to other funds
Total liabilities 549,385 53,436 234,107 973,187 86,465
Deferred inflows of resources
Deferred unavailable revenue/taxes 79,574 88,564
Unavailable revenue and notes 5,882 1,520
Total deferred inflows of resources 85,456 90,084
Total liabilities&deferred inflows of resources 549,385 53,436 319,563 1,063,271 86,465
Fund balance
Nonspendable 230,495
Restricted 70,321 2,147,691
Committed 741,290 283,427 239,757
Total fund balance 70,321 741,290 283,427 470,252 2,147,691
Total liabilities,deferred inflows&fund balances $ 619,706 $ 794,726 $ 602,990 $ 1,533,523 $ 2,234,156
The Notes to the Financial Statements,found in Basic Financial Section,are an integral part of this statement
Comprehensive Annual Financial Report(CAFR)-109
CITY OF Yakima
COMBINING BALANCE SHEET
NONMAJOR SPECIAL REVENUE FUNDS
December 31,2018 Page 2 of 3
Emergency Public Sfty Police
Cemetery Services Comm Grants DYBID Trolley
Assets
Cash and cash equivalents $ 116,709 $ 191,004 $ 1,352,930 $ 432,538 $ 106,200 $ 200
Cash with fiscal agent - 7,341 - 423 -Investments 796,011
Receivables,net allowance for uncollectible accounts
Taxes 44,581
Accounts 19,260 25,874
Notes and contracts receivable 43,042
Due from other governments 22,078 20,254
Inventories and prepayments
Total assets $ 135,969 $ 242,926 $ 1,378,804 $ 1,251,050 $ 149,242 $ 20,454
Liabilities
Accounts payable $ 876 $ 3,277 $ 13,577 $ 20,313 $ 42,253 $ 598
Retainage payable
Accrued salaries and benefits 16,317 185,654 346,856 16,452
Custodial accounts - - - 28,642 -Due to other governments 267
Due to other funds 300,000
Total liabilities 17,460 188,931 660,433 65,407 42,253 598
Deferred inflows of resources
Deferred unavailable revenue/taxes 44,581
Unavailable revenue and notes 43,042
Total deferred inflows of resources 44,581 43,042
Total liabilities&deferred inflows of resources 17,460 233,512 660,433 65,407 85,295 598
Fund balance
Nonspendable - - - - -Restricted 9,414 718,371 1,185,643 19,856
Committed 118,508 63,947
Total fund balance 118,508 9,414 718,371 1,185,643 63,947 19,856
Total liabilities,deferred inflows&fund balances $ 135,968 $ 242,926 $ 1,378,804 $ 1,251,050 $ 149,242 $ 20,454
The Notes to the Financial Statements,found in Basic Financial Section,are an integral part of this statement
110-Comprehensive Annual Financial Report(CAFR)
CITY OF Yakima
COMBINING BALANCE SHEET
NONMAJOR SPECIAL REVENUE FUNDS
December 31,2018 Page 3 of 3
Tourist Pro Capitol PFD Tourist PFD
PBIA Cony Ctr Theatre Cony Ctr Promotion Cap Theatre Total
$ 1,090 $ 245,154 $ 3,893 $ 358,902 $ 54,458 $ 233,695 $ 6,617,917
26,602
660,498 2,863,686
31,388 34,262 69,488 347,857
154,013 9,041 6,849 238,368
6,087 49,129
458,307
230,495
$ 7,177 $ 430,555 $ 38,155 $ 1,028,441 $ 123,946 $ 240,544 $ 10,832,361
$ $ 29,702 $ 4,011 $ $ 54,043 $ $ 999,547
15,033
1,064,297
23,616 601,387
2,770
300,000
53,318 4,011 54,043 2,983,034
212,720
6,087 56,531
6,087 269,251
6,087 53,318 4,011 54,043 3,252,285
230,495
377,237 34,144 1,028,440 69,902 240,544 5,901,562
1,090 1,448,019
1,090 377,237 34,144 1,028,440 69,902 240,544 7,580,076
$ 7,177 $ 430,555 $ 38,155 $ 1,028,440 $ 123,945 $ 240,544 $ 10,832,361
The Notes to the Financial Statements,found in Basic Financial Section,are an integral part of this statement
Comprehensive Annual Financial Report(CAFR)-111
CITY OF Yakima
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND
BALANCES -NONMAJOR SPECIAL REVENUE FUNDS
December 31,2018 Page 1 of 3
Economic Community Parks and Arterial
Dev Relations Recreation Streets Street
Revenues
Taxes and assessments $ $ $ 2,505,558 $ 3,634,020 $
Licenses and permits 646,993
Intergovernmental revenues 130,547 79,779 1,917,190 1,077,095
Charges for services 982,335 577,296
Contributions and donations - - 10,921 -Investment earnings 1,000
Other revenue 785 81,252 13,496
Total revenues 130,547 647,778 3,659,845 6,142,002 1,078,095
Expenditures
Current
General government 106,292 595,719
Public safety 223,490
Utilities
Transportation 4,784,378 16,038
Economic environment
Public health services 574,469
Cultural and recreational 3,971,783
Capital outlay
General government 16,603
Transportation 773,145
Debt service
Principal 57,750 95,145
Interest and related charges 35,911 69,141
Total Expenditures 106,292 612,322 4,769,742 4,878,039 953,469
Excess(deficiency)of revenue over(under)expenditure 24,255 35,456 (1,109,897) 1,263,963 124,626
Other financing(sources)uses
Transfers in 1,519,940 144,000
Transfers out (2,565) (162,000) (1,787,814)
Proceeds from issuance of long-term debt 500,000
Sale of capital assets - - - 207 Total other financing sources(uses) (2,565) 1,357,940 (1,643,607) 500,000
Net change in fund balance 24,255 32,891 248,043 (379,644) 624,626
Fund balance-beginning 46,065 708,399 35,384 849,894 1,523,066
Fund balance-ending $ 70,320 $ 741,290 $ 283,427 $ 470,250 $ 2,147,692
The Notes to the Financial Statements,found in Basic Financial Section,are an integral part of this statement
112-Comprehensive Annual Financial Report(CAFR)
CITY OF Yakima
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND
BALANCES -NONMAJOR SPECIAL REVENUE FUNDS
December 31,2018 Page 2 of 3
Emergency Public Sfty Police Tourist Pro Capitol
Cemetery Services Comm Grants DYBID Trolley PBIA Cony Ctr Theatre
$ $ 1345,263 $ 217,627 $ $ $ $ $ 730,393 $ 305,087
1,591 82,293
185,585 3,933,626 374,228 326,633
79 291 9,238 35 50 250
1,500 201,756 152,687 1,275 3,100 508,553
185,664 1,347,145 4,152,753 667,515 152,687 1,275 3,135 1,565,629 305,337
167,315 - - - -
1,269,094 3,569,033 187,623
267,588
13,871
2,200 444,099
188,106 1,222,509 441,612
70,000 - - - - -60,198 - - - - -267,588 1,269,094 3,699,231 354,938 188,106 13,871 2,200 1,666,608 441,612
(81,924) 78,051 453,522 312,577 (35,419) (12,596) 935 (100,979) (136,275)
139,000 100,000 11,500 100,000 142,400
(175,000)
139,000 (175,000) 100,000 11,500 100,000 142,400
57,076 (96,949) 553,522 312,577 (35,419) (1,096) 935 (979) 6,125
61,431 106,362 164,849 873,065 99,366 20,952 155 378,217 28,018
$ 118,507 $ 9,413 $ 718,371 $ 1,185,642 $ 63,947 $ 19,856 $ 1,090 $ 377,238 $ 34,143
The Notes to the Financial Statements,found in Basic Financial Section,are an integral part of this statement
Comprehensive Annual Financial Report(CAFR)-113
CITY OF Yakima
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND
BALANCES -NONMAJOR SPECIAL REVENUE FUNDS
December 31,2018 Page 3 of 3
PFD Tourist PFD
Cony Ctr Promotion Cap Theatre Total
Revenues
Taxes and assessments $ 942,292 $ $ 713,848 $ 10 394,088
Licenses and permits 646,993
Intergovernmental revenues 3,288,496
Charges for services 611,751 6,991,454
Contributions and donations 10,921
Investment earnings 2,321 771 1,417 15,452
Other revenue 964,404
Total revenues 944,613 612,522 715,265 22,311,808
Expenditures
Current
General government 869,326
Public safety 5,249,241
Utilities 267,588
Transportation 4,814,287
Economic environment 621,963 1,068,262
Public health services 574,469
Cultural and recreational 13,583 13,488 5,851,082
Capital outlay
General government 16,603
Transportation 773,145
Debt service
Principal 222,895
Interest and related charges 165,250
Total Expenditures 13,583 621,963 13,488 19,872,148
Excess(deficiency)of revenue over(under)expenditure 931,030 (9,441) 701,777 2,439,660
Other financing(sources)uses
Transfers in 2,156,840
Transfers out (718,213) (667,400) (3,512,992)
Proceeds from issuance of long-term debt 500,000
Sale of capital assets 207
Total other financing sources(uses) (718,213) (667,400) (855,945)
Net change in fund balance 212,817 (9,441) 34,377 1,583,715
Fund balance-beginning 815,624 79,342 206,167 5,996,359
Fund balance-ending $ 1,028,441 $ 69,901 $ 240,544 $ 7,580,074
The Notes to the Financial Statements,found in Basic Financial Section,are an integral part of this statement
114-Comprehensive Annual Financial Report(CAFR)
NONMAJOR DEBT SERVICE FUNDS
Convention Center/Capitol Theatre Expansion LTGO Bonds (272) -These bonds were issued to fund additions to
the Yakima Convention Center in 2002 and the Capital Theatre in 2009.
Various General Obligation Bonds Fund (281)-The proceeds are for the purpose of providing various projects
such as Parks,Streets,Fire and Downtown Revitalization.
Convention Center Remodel LTGO (287)-These bonds were issued to expand/remodel the Convention Center in
1996.
Comprehensive Annual Financial Report(CAFR)-115
CITY OF Yakima
COMBINING BALANCE SHEET
NONMAJOR DEBT SERVICE FUNDS
December 31,2018 Page 1 of 1
Cony Ctr/ Various Cony Ctr
Cap Th Bond GO Bonds Rem Bond Total
Assets
Cash and cash equivalents $ 166,440 $ 8,733 $ 31,619 $ 206,792
Receivables,net allowance for uncollectible accounts
Taxes 41,673 41,673
Total assets $ 166,440 $ 8,733 $ 73,292 $ 248,465
Fund balance
Restricted $ 166,440 $ $ 73,292 $ 239,732
Assigned 8,733 8,733
Total liabilities,deferred inflows Sr fund balances $ 166,440 $ 8,733 $ 73,292 $ 248,465
The Notes to the Financial Statements,found in Basic Financial Section,are an integral part of this statement
116-Comprehensive Annual Financial Report(CAFR)
CITY OF Yakima
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND
BALANCES -NONMAJOR DEBT SERVICE FUNDS
December 31,2018 Page 1 of 1
Cony Ctr/ Various Cony Ctr
Cap Th Bond GO Bonds Rem Bond Total
Revenues
Taxes and assessments $ $ 2,397,509 $ 425,135 $ 2,822,644
Intergovernmental revenues 101,926 101,926
Investment earnings 750 750
Total revenues 101,926 2,397,509 425,885 2,925,320
Expenditures
Debt service
Principal 575,000 2,185,875 395,000 3,155,875
Interest and related charges 454,850 857,807 30,265 1,342,922
Total Expenditures 1,029,850 3,043,682 425,265 4,498,797
Excess(deficiency)of revenue over(under)expenditure (927,924) (646,173) 620 (1,573,477)
Other financing(sources)uses
Transfers in 928,213 8,533,166 9,461,379
Payments to refunded debt (7,886,993) (7,886,993)
Total other financing sources(uses) 928,213 646,173 1,574,386
Net change in fund balance 289 — 620 909
Fund balance-beginning 166,150 8,734 72,672 247,556
Fund balance-ending $ 166,439 $ 8,734 $ 73,292 $ 248,465
The Notes to the Financial Statements,found in Basic Financial Section,are an integral part of this statement
Comprehensive Annual Financial Report(CAFR)—117
118-Comprehensive Annual Financial Report(CAFR)
NONMAJOR CAPITAL PROJECT FUNDS
Central Business District Capital Improvement Fund (321)-Created by Ordinance No. 1599. The Central Business
District Improvement Program works to develop a long range guide for evaluating proposals for physical changes
and the scheduling of improvements to the Central Business District. Resources are derived from private
contributions and transfers from other funds.
Capitol Theatre Construction Fund (322) -Created by Ordinance 1654 on April 15, 1974. The purpose of this fund
was for the acquisition of the Capitol Theatre and capital repairs to that building. The Theatre was destroyed by fire
in 1975. After the Theatre was rebuilt in 1978,the fund was deactivated. The fund was then reactivated in 2007
when additional funding for renovation became available.
Yakima Revenue Development Area(323)-Created by Ordinance 2011-31 on July 19,2011. This fund was created
to establish a capital fund to account for the activity of the Yakima Revenue Development Area,and utilizes the
Washington State Local Infrastructure Financing Tool (LIFT) program,which authorizes the City to use state sales
and excise tax revenue to finance public infrastructure needed to accelerate redevelopment of the former sawmill
site.
Parks and Recreation Capital Fund (331)-Created to receive the proceeds from bond issues approved by the voters
for improvements to City parks. This fund continues to accumulate resources for Park capital improvement
projects. Revenues consist of grants,interest earnings,contributions and transfers from the Parks and Recreation
operating fund.
Fire Capital Fund (332)-Created to acquire firefighting and fire training equipment and facilities,including real
property,for the City of Yakima Fire Department. Funding sources include Bond Issues,contributions from other
funds for equipment replacement,investment income,and proceeds from sale of fire equipment and retired
stations.
Law and Justice Capital Fund (333)-Created in 1990 for the purpose of constructing capital facilities for the City's
Law and Justice Programs. Funds are provided by an allocation of local Criminal Justice Sales Tax,grants,and
interest earnings.
Public Works Trust (REET 1) Fund (342)-Accounts for the first 1/4%Real Estate Excise Tax.
REET 2 Capital Fund (343)-Created in 2005 to track Capital improvement projects funded with the second 1/4%of
Real Estate Excise Tax.
Streets Capital Fund (344)-Created in 2014 to account for the 2013 voter supported investment of$2 million
annually into streets projects. This fund also accounts for Transportation Benefit District revenue and expenditures.
Yakima Convention Center Capital Fund (370)-Was established for the Convention Center and Performing Arts
Center Facilities and is used for paying all or any part of the cost of acquiring,constructing or operating convention
center facilities. The fund was originally created by Ordinance 1624,February 19, 1974. In 2002,proceeds from a
$6.6 million bond issue were used to expand the Convention Center. An allocation of local option Hotel/Motel Tax
and interest earnings are this fund's primary revenue sources.
Cumulative Reserve for Capital Improvement Fund(392) -Is used to account for general government capital
projects that are not eligible to be included in other capital funds.
Comprehensive Annual Financial Report(CAFR)-119
CITY OF Yakima
COMBINING BALANCE SHEET
NONMAJOR CAPITAL PROJECT FUNDS
December 31,2018 Page 1 of 2
Central Bus Capitol Yakima Rev Parks&
District Impr Theatre Cons Dev Area Recreation Fire
Assets
Cash and cash equivalents $ 354,608 $ 149,087 $ 348,153 $ 1,603,335 $ 400,729
Cash with fiscal agent
Investments 2,204,996 2,950,664
Receivables,net allowance for uncollectible accounts
Taxes 16,432
Accounts 65
Due from other governments
Due from other funds
Total assets $ 354,673 $ 149,087 $ 2,569,581 $ 4,553,999 $ 400,729
Liabilities
Accounts payable $ $ $ 139,192 $ 530,004 $ 7,108
Retainage payable 2,267
Custodial accounts 887,131
Due to other governments
Due to other funds — — 200,000 —Total liabilities 887,131 339,192 532,271 7,108
Deferred inflows of resources
Unavailable revenue and notes 65
Total liabilities&deferred inflows of resources 887,196 339,192 532,271 7,108
Fund balance
Restricted
Committed 2,230,389
Assigned 149,087 4,021,729 393,621
Unassigned (532,523)
Total fund balance (532,523) 149,087 2,230,389 4,021,729 393,621
Total liabilities,deferred inflows&fund balances $ 354,673 $ 149,087 $ 2,569,581 $ 4,554,000 $ 400,729
The Notes to the Financial Statements,found in Basic Financial Section,are an integral part of this statement
120-Comprehensive Annual Financial Report(CAFR)
CITY OF Yakima
COMBINING BALANCE SHEET
NONMAJOR CAPITAL PROJECT FUNDS
December 31,2018 Page 2 of 2
Law and Public Works REET 2 Streets Yak Cony Cumulative
Justice Trust Capital Capital Center Reserve Total
$ 438,319 $ 1,025,290 $ 792,440 $ 959,967 $ 353,887 $ 586,114 $ 7,011,930
67,949 67,949 135,898
1,886,872 651,269 7,693,800
62,500 78,932
15,958 16,023
667 667
200,000 - - - 200,000
$ 454,944 $ 2,980,111 $ 1,060,389 $ 959,967 $ 1,067,656 $ 586,114 $ 15,137,250
$ 10,515 $ $ $ 8,146 $ 10,664 $ 4,761 $ 710,390
2,267
887,131
5 5
200,000
10,520 8,146 10,664 4,761 1,799,793
65
10,520 8,146 10,664 4,761 1,799,858
2,980,111 1,060,389 1,056,992 581,353 5,678,845
2,230389
444,425 951,821 5,960,682
(532,523)
444,425 2,980,111 1,060,389 951,821 1,056,992 581,353 13,337,393
$ 454,945 $ 2,980,111 $ 1,060,389 $ 959,967 $ 1,067,656 $ 586,114 $ 15,137,251
The Notes to the Financial Statements,found in Basic Financial Section,are an integral part of this statement
Comprehensive Annual Financial Report(CAFR)-121
CITY OF Yakima
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND
BALANCES -NONMAJOR CAPITAL PROJECT FUNDS
December 31,2018 Page 1 of 2
Central Bus Capitol Yakima Rev Parks&
District Impr Theatre Cons Dev Area Recreation Fire
Revenues
Taxes and assessments $ $ $ 1,000,000 $ $
Intergovernmental revenues 115,947
Charges for services 68,000
Contributions and donations 656,613 262,421
Investment earnings 23,384 35,784
Other revenue 35,310 1,782 55
Total revenues 715,307 1,000,000 415,934 68,055
Expenditures
Current
General government
Public safety 62,198
Transportation
Economic environment 13,102 262
Cultural and recreational 28,144
Capital outlay
General government
Public safety
Transportation 59,590 - 454,245 -Cultural and recreational 13,705 4,776,909
Debt service
Principal
Interest and related charges 9,229 12,825
Total Expenditures 72,692 13,705 463,736 4,817,878 62,198
Excess(deficiency)of revenue over(under)expenditure 642,615 (13,705) 536,264 (4,401,944) 5,857
Other financing(sources)uses
Transfers in 60,000 1,464,814
Transfers out (4,437,653)
Proceeds from issuance of long-term debt 12,450,000
Sale of capital assets 5,000
Total other financing sources(uses) 60,000 8,012,347 1,469,814
Special and extraordinary items (1,747,309)
Net change in fund balance (1,104,694) 46,295 536,264 3,610,403 1,475,671
Fund balance-beginning 572,172 102,791 1,694,125 411,326 (1,082,051)
Fund balance-ending $ (532,522) $ 149,086 $ 2,230,389 $ 4,021,729 $ 393,620
122-Comprehensive Annual Financial Report(CAFR)
CITY OF Yakima
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND
BALANCES -NONMAJOR CAPITAL PROJECT FUNDS
December 31,2018 Page 2 of 2
Law and Public Works REET 2 Streets Yak Cony Cumulative
Justice Trust Capital Capital Center Reserve Total
$ 224,093 $ 1,232,787 $ 1,232,787 $ 633,862 $ 274,128 $ $ 4,597,657
12,667 128,615
31,200 99,200
919,034
250 9,229 500 69,147
109,960 147,107
237,010 1,232,787 1,242,016 743,822 274,628 31,200 5,960,760
3,903 80,068 83,971
198,723 260,921
350,000 32,216 382,216
13,364
270,985 299,129
42,347 - - - - 42,347
426,610 426,610
10,968 524,802
34,765 4,825,378
52,746 165,100 217,846
31,702 9,081 5,010 67,847
629,236 126,795 524,181 48,194 305,750 80,068 7,144,432
(392,226) 1,105,992 717,835 695,628 (31,122) (48,868) (1,183,672)
327,134 84,448 155,000 53,000 2,144,397
(342,048) (253,465) (3,500,000) (8,533,166)
3,500,000 15,950,000
32,385 37,385
359,519 (257,600) (253,465) 155,000 53,000 9,598,616
(1,747,309)
(32,707) 848,392 464,370 695,628 123,878 4,132 6,667,635
477,133 2,131,719 596,018 256,191 933,114 577,221 6,669,759
$ 444,426 $ 2,980,111 $ 1,060,388 $ 951,819 $ 1,056,992 $ 581,353 $ 13,337,394
The Notes to the Financial Statements,found in Basic Financial Section,are an integral part of this statement
Comprehensive Annual Financial Report(CAFR)-123
124-Comprehensive Amoral Financial Report(CAFR)
PERMANENT FUND
Cemetery Trust Fund (710)-This non-expendable Trust is credited for all money received from owners for
endowment care. The principal shall be held forever in trust by the City of Yakima,while interest earnings are
transferred to the Cemetery Fund.
Comprehensive Annual Financial Report(CAFR)-125
CITY OF Yakima
COMBINING BALANCE SHEET
NONMAJOR PERMANENT FUND
December 31,2018 Page 1 of 1
Cemetery
Trust
Assets
Cash and cash equivalents $ 684,225
Receivables,net allowance for uncollectible accounts
Accounts 171
Total assets $ 684,396
Fund balance
Nonspendable $ 684,396
Total liabilities,deferred inflows&fund balances $ 684,396
The Notes to the Financial Statements,found in Basic Financial Section,are an integral part of this statement
126-Comprehensive Annual Financial Report(CAFR)
CITY OF Yakima
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND
BALANCES -NONMAJOR PERMANENT FUND
December 31,2018 Page 1 of 1
Cemetery
Trust
Revenues
Charges for services $ 17,099
Investment earnings 12,000
Total revenues 29,099
Excess(deficiency)of revenue over(under)expenditure 29,099
Other financing(sources)uses
Transfers out (12,000)
Net change in fund balance 17,099
Fund balance-beginning 667,296
Fund balance-ending $ 684,395
The Notes to the Financial Statements,found in Basic Financial Section,are an integral part of this statement
Comprehensive Annual Financial Report(CAFR)—127
US-Comprehensive Amoral Financial Report(CAFR)
INTERNAL SERVICE FUNDS
Unemployment Compensation Reserve Fund (512)-Established in 1978 to provide unemployment compensation
coverage for City employees as required by state law.
Employees'Health Benefit Reserve Fund(513) -Established for the transfer of premiums from the operating funds
in order to pay medical and dental costs incurred by persons covered by the Employees'Health Benefit Plan of the
City and to pay expenses incurred in connection with administering that plan.
Workers'Compensation Reserve Fund (514)-Created when City Council adopted Ordinance No. 2783 effective
July 1, 1984,to self-insure a Workers'Compensation Program for the City employees pursuant to RCW Chapter
51.14.
Risk Management Reserve Fund (515)-Created by Ordinance No. 2941,on February 11,1986,to account for
general liability and purchased insurance coverage. Funding revenues are contributions from other fund groups
and are planned to match expenses of insurance premiums for coverage in excess of self-insured amounts,claims
resulting from the self-insured program,and operating expenses.
Wellness and Employee Assistance Program (EAP) Fund (516)-Established in 1998 to provide the opportunity to
all City employees to improve their physical,mental and emotional wellbeing.
Equipment Rental Fund(551) -A self-supporting fund for ensuring cash flow and stabilized budgeting for the
systematic replacement of vehicles and equipment. Participating departments share in the allocated cost sufficient
to cover maintenance and operating costs of each vehicle plus depreciation sufficient to provide for the eventual
replacement of each vehicle.
Environmental Fund (555)-Established in 1991 to accumulate a reserve for environmental contingencies,funded by
a surcharge on fuel purchased by the operating funds.
Public Works Administration Fund (560)-Established in 1983. The fund centralizes both the accountability and
costs for supervision of funds which are housed at the Public Works facility.
Comprehensive Annual Financial Report(CAFR)-129
CITY OF Yakima
COMBINING STATEMENT OF NET POSITION
INTERNAL SERVICE FUNDS
December 31,2018 Page 1 of 4
Unemployment Employees' Workers' Risk
Compensation Health Benefit Compensation Management
Reserve Reserve Reserve Reserve
Assets
Current Assets
Cash and cash equivalents $ 206,606 $ 739,549 $ 17,694 $ 708,063
Investments 1,361,014 1,303,069
Receivables,net allowance for uncollectible accounts
Accounts 22,040 931,541 82,145
Notes and contracts receivable
Due from other governments
Due from other funds
Inventories and prepayments 1,855
Total current assets 228,646 3,033,959 99,839 2,011,132
Noncurrent assets
Capital assets,net of accumulated depreciation
Buildings
Machinery,equipment&vehicles
Other improvements&utility systems
Total noncurrent assets
Total assets 228,646 3,033,959 99,839 2,011,132
Deferred outflows of resources
Deferred outflows related to pension 3,684 10,006 7,502 40,944
Total deferred outflows of resources 3,684 10,006 7,502 40,944
Total assets&deferred outflows of resources 232,330 3,043,965 107,341 2,052,076
130-Comprehensive Annual Financial Report(CAFR)
CITY OF Yakima
COMBINING STATEMENT OF NET POSITION
INTERNAL SERVICE FUNDS
December 31,2018 Page 2 of 4
Public
Wellness/ Equipment Works
EAP Rental Environmental Administration Total
$ 35,396 $ 1,014,048 $ 564,901 $ 668,451 $ 3,954,708
1,802,015 4,466,098
175 1,035,900
99,642 - - 99,642
149,571 149,571
300,000 300,000
569,546 571,401
35,396 3,785,426 714,472 668,451 10,577,320
5,577 5,577
1,937 8,713,466 22,193 8,737,596
9,868 381,362 43,884 435,114
11,805 8,713,466 381,362 71,654 9,178,287
47,201 12,498,892 1,095,834 740,105 19,755,607
66,337 38,488 166,962
66,337 38,488 166,962
47,201 12565,229 1,095,834 778,593 19,922,569
Comprehensive Annual Financial Report(CAFR)-131
CITY OF Yakima
COMBINING STATEMENT OF NET POSITION
INTERNAL SERVICE FUNDS
December 31,2018 Page 3 of 4
Unemployment Employees' Workers' Risk
Compensation Health Benefit Compensation Management
Reserve Reserve Reserve Reserve
Liabilities
Current liabilities
Accounts payable 26,808 135 101,575 73,826
Claims&judgments payable 1,902,947 450,000 750,000
Accrued salaries and benefits 7,733 16,459 11,045 63,569
Compensated absences 2,181 2,847 1,378 10,896
Custodial accounts 64,711
Due to other governments
Other post-employment benefits-current 504 1,269 871 6,810
Total current liabilities 37,226 1,923,657 564,869 969,812
Noncurrent liabilities
Compensated absences 14,967 18,681 8,854 76,160
Pension Liability 24,637 62,075 50,009 245,145
Other postemployment benefits(OPEB) 9,908 28,037 21,318 131,096
Total noncurrent liabilities 49,512 108,793 80,181 452,401
Total liabilities 86,738 2,032,450 645,050 1,422,213
Deferred inflows of resources
Deferred inflows related to pension 9,748 24,673 19,828 97,805
Deferred inflows related to OPEB 402 1,011 695 5,428
Total deferred inflows of resources 10,150 25,684 20,523 103,233
Total liabilities&deferred inflows of resources 96,888 2,058,134 665,573 1,525,446
Net position
Net investment in capital assets
Unrestricted 135,442 985,830 (558,231) 526,631
Total net position $ 135,442 $ 985,830 $ (558,231) $ 526,631
132-Comprehensive Annual Financial Report(CAFR)
CITY OF Yakima
COMBINING STATEMENT OF NET POSITION
INTERNAL SERVICE FUNDS
December 31,2018 Page 4 of 4
Public
Wellness/ Equipment Works
EAP Rental Environmental Administration Total
6,235 31,524 158,787 41,942 440,833
3,102,947
95,572 52,122 246,500
8,793 10,421 36,515
64,711
39 307 2 348
7,220 3,842 20,516
6,274 143,416 158,787 108,329 3,912,370
64,404 67,639 250,706
398,349 224,998 1,005,213
183,001 106,556 479,916
645,754 399,193 1,735,835
6,274 789,170 158,787 507,522 5,648,205
158,834 89,909 400,797
5,754 3,062 16,352
164,588 92,971 417,149
6,274 953,758 158,787 600,493 6,065,354
11,805 8,713,466 381,362 71,655 9,178,288
29,121 2,898,004 555,685 106,447 4,678,929
$ 40,926 $ 11,611,470 $ 937,047 $ 178,102 $ 13,857,217
Comprehensive Annual Financial Report(CAFR)-133
CITY OF Yakima
COMBINING STATEMENT OF REVENUES AND CHANGES IN FUND NET POSITION
INTERNAL SERVICE FUNDS
December 31,2018 Page 1 of 2
Unemployment Employees' Workers' Risk
Compensation Health Benefit Compensation Management
Reserve Reserve Reserve Reserve
Operating revenues
Charges and fees for services $ $ $ $
Charges for insurance 4,053,199
Employer contributions 214,419 10,090,406 1,575,196
Employee contributions 1,940,434 71,502
Other operating revenue 2,940
Total operating revenues 214,419 12,030,840 1,646,698 4,056,139
Operating expenses
Personnel services 72,684 168,345 118,438 652,706
Materials and supplies 1,397 2,945 3,609
Contractual services 9,436 2,100,158 434,451 2,972,302
Claims and other benefits 86,488 9,613,327 1,530,350 3,045
Depredation
Total operating expense 168,608 11,883,227 2,086,184 3,631,662
Operating income(loss) 45,811 147,613 (439,486) 424,477
Nonoperating revenues(expense)
Grants and subsidies
Interest revenue 100,000 500 100,000
Other nonoperating revenue 102,995 227,765 218,515
Gain(loss)disposal of capital assets
Total nonoperating revenue(exp) 202,995 228,265 318,515
Income(loss)before conts&transfers 45,811 350,608 (211,221) 742,992
Transfers in
Transfers(out)
Change in net position 45,811 350,608 (211,221) 742,992
Netposition-beginning 93,686 645,422 (340,001) (161,580)
Prior period adjustment due to GASB 75 (4,054) (10,201) (7,010) (54,781)
Netposition-ending $ 135,443 $ 985,829 $ (558,232) $ 526,631
134-Comprehensive Annual Financial Report(CAFR)
CITY OF Yakima
COMBINING STATEMENT OF REVENUES AND CHANGES IN FUND NET POSITION
INTERNAL SERVICE FUNDS
December 31,2018 Page 2 of 2
Public
Wellness/ Equipment Works
EAP Rental Environmental Administration Total
$ $ 2,827,028 $ 123,855 $ 593,012 $ 3,543,896
611,067 4,664,266
30,000 11,910,021
2,011,936
465 175 3,580
30,465 2,827,203 123,855 1,204,079 22,133,699
1,009,378 529,927 2,551,478
6,486 1,659,384 5,947 55,945 1,735,712
53,131 216,579 207,851 382,443 6,376,350
27,289 8,401 11,268,900
4,213 1,247,757 32,288 10,315 1,294572
63,830 4,160,387 246,086 987,031 23,227,012
(33,365) (1,333,184) (122,231) 217,048 (1,093,313)
149,571 149,571
38,248 238,748
3,860 553,134
(27,253) (27,253)
14,855 149,571 914,200
(33,365) (1,318,329) 27,340 217,048 (179,113)
1,662,792 1,662,792
(11,866) (15,000) (26,866)
(33,365) 332,597 27,340 202,048 1,456,813
74,291 11,336,944 909,705 6,956 12,565,424
(58,070) (30,902) (165,018)
$ 40,926 $ 11,611,471 $ 937,045 $ 178,102 $ 13,857,219
Comprehensive Annual Financial Report(CAFR)-135
CITY OF Yakima
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
December 31,2018 Page 1 of 4
Unemployment Employees' Workers' Risk
Compensation Health Benefit Compensation Management
Reserve Reserve Reserve Reserve
Cash flows from operating activities
Receipts from customers $ $ $ $ 4,053,199
Contributions rec'd employer&employee 214,093 11,985,639 1,648,539
Payments to suppliers&service providers (6,230) (1,816,629) (451,259) (3,007,630)
Payments to employees salaries&benefits (73,484) (172,337) (125,995) (696,359)
Transfers to other funds 2,940
Payments to claimants&beneficiaries (86,488) (8,548,841) (1,530,350) (3,045)
Net cash flows from operating activities 47,891 1,447,832 (459,065) 349,105
Cash from noncapital financing activities
Transfer in/other nonoperating revenue 102,995 227,765 218,515
Cash flows from capital financing activities
Proceeds from disposal of property
Capital expenditures
Principal paid on capital debt
Transfers in
Transfers(out)
Net cash provided by(used for)financing
Cash flows from investing activities
Proceeds from sale of investments 1,267,945
Interest on investments 100,000 500 100,000
Purchase of investments (1,361,014) (1,303,069)
Net cash provided by investing activities (1,261,014) 500 64,876
Net increase(dec)in cash&cash equivalents 47,891 289,813 (230,800) 632,496
Cash&cash equivalents-beginning 158,715 449,736 248,494 75,567
Cash&cash equivalents-ending $ 206,606 $ 739,549 $ 17,694 $ 708,063
136-Comprehensive Annual Financial Report(CAFR)
CITY OF Yakima
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
December 31,2018 Page 2 of 4
Public
Wellness/ Equipment Environ- Works
EAP Rental mental Admin Total
$ $ 3,011,720 $ 223,662 $ 1,204,079 $ 8,492,660
30,000 13,878,271
(61,767) (1,934,181) (55,130) (415,425) (7,748,251)
(1,086,828) (596,543) (2,751,546)
465 175 3,580
(27,289) (8,401) (10,204,414)
(31,302) (36,403) 168,532 183,710 1,670,300
149,571 698,846
261,660 261,660
(10,209) (529,286) (539,495)
(6,706) (6,706)
1,662,792 1,662,792
(11,866) (15,000) (26,866)
(10,209) 1,383,300 (21,706) 1,351,385
1,348,308 2,616,253
38,248 238,748
(1,802,015) (4,466,098)
(415,459) (1,611,097)
(41,511) 931,438 318,103 162,004 2,109,434
76,907 82,610 246,798 506,447 1,845,274
$ 35,396 $ 1,014,048 $ 564,901 $ 668,451 $ 3,954,708
Comprehensive Annual Financial Report(CAFR)-137
CITY OF Yakima
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
December 31,2018 Page 3 of 4
Unemployment Employees' Workers' Risk
Compensation Health Benefit Compensation Management
Reserve Reserve Reserve Reserve
Reconciliation-operating income(loss)to
net cash provided(used)for operations
Operating income(loss) $ 45,810 $ 1,212,100 $ (439,486) $ 424,477
Adj to reconcile operating income(loss)
to net cash provided(used)for operations
Depreciation expense
Change in assets and liabilities
(Inc)dec in net accounts receivable (325) (45,201) 1,840
(Inc)dec in inventory
(Dec)inc in accounts payable 3,206 284,926 (13,862) (31,719)
(Dec)inc in wages/benefits payable (1,478) (6,482) (9,029) (51,349)
(Dec)inc in compensated absences 678 2,489 1,472 7,696
Total adjustments 2,081 235,732 (19,579) (75,372)
Net cash prov(used)for operations $ 47,891 $ 1,447,832 $ (459,065) $ 349,105
138-Comprehensive Annual Financial Report(CAFR)
CITY OF Yakima
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
December 31,2018 Page 4 of 4
Public
Wellness/ Equipment Environ- Works
EAP Rental mental Admin Total
$ (33,365) $ (1,333,184) $ (122,230) $ 217,048 $ (28,830)
4,213 1,247,756 32,288 10,315 1,294572
184,692 99,806 240,812
(29,645) (29,645)
(2,150) (28,572) 158,667 22,963 393,459
(81,741) (68,854) (218,933)
4,291 2,238 18,864
2,063 1,296,781 290,761 (33,338) 1,699,129
$ (31,302) $ (36,403) $ 168,531 $ 183,710 $ 1,670,299
Comprehensive Annual Financial Report(CAFR)-139
140-Comprehensive Amoral Financial Report(CAFR)
AGENCY FUND
YakCorps (632)-This fund was established in 2011 to account for the fiscal activity of the Yakima Consortium for
Regional Public Safety(YAKCORPS). YAKCORPS consists of a variety of local agencies and governments. It was
formed to operate and maintain a county-wide multi-discipline public safety system. The Inter-Local Agreement
provides for the structure governance,operations and funding of the Consortium and its activities. Per the
Agreement the City of Yakima acts as fiscal agent for the Consortium.
Comprehensive Annual Financial Report(CAFR)-141
CITY OF Yakima
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
AGENCY FUND
December 31,2018 Page 1 of 1
Yak Corps
Balance Balance
As of As of
1/1/2018 Additions Deductions 12/31/2018
Assets
Cash&equity in pooled investments $ 444,809 $ 671,071 $ 962,773 $ 153,107
Accounts receivable 34,811 646,184 673,002 7,993
Total assets $ 479,620 $ 1,317,255 $ 1,635,775 $ 161,100
Liabilities
Warrants/accounts payable $ 202,485 $ $ 202,485 $
Due to other government units 277,135 116,035 161,100
Total liabilities $ 479,620 $ $ 318,520 $ 161,100
The Notes to the Financial Statements,found in Basic Financial Section,are an integral part of this statement
142-Comprehensive Annual Financial Report(CAFR)
CITY OF Yakima
NET POSITION BY COMPONENT
Last Ten Fiscal Years(Amounts Expressed in Thousands-Accrual Basis of Accounting) Page 1 of 1
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Governmental activities
Net investment in capital assets $128,071 $137,521 $147,349 $149,222 $155,430 $153,733 $152,325 $154,345 $151,106 $140,858
Restricted 9,286 9,350 18,624 18,548 21,768 18,483 22,371 17,491 25,020 28,292
Unrestricted 14,928 10,545 (921) (2,528) (7,268) (7,320) (23,566) (27,984) (34,325) (48,223)
Total governmental activities $152,285 $157,416 $165,052 $165,242 $169,930 $164,896 $151,130 $143,852 $141,801 $120,927
Business-type activities
Net investment in capital assets $ 98,161 $101,913 $105,681 $109,844 $126,846 $130,496 $127,576 $135,655 $136,112 $135,946
Restricted 2,366 2,370 2,372 1,757 1,761 1,808 2,019 1,835 1,835 1,835
Unrestricted 15,449 19,461 17,690 19,984 20,151 24,463 23,554 30,201 34,580 41,308
Total bus activities net position $115,976 $123,744 $125,743 $131,585 $148,758 $156,767 $153,149 $167,691 $172,527 $179,089
Net position
Net investment in capital assets $226,232 $239,434 $253,030 $259,066 $282,276 $284,229 $279,901 $290,000 $287,218 $276,804
Restricted 11,652 11,720 20,996 20,305 23,529 20,291 24,390 19,326 26,855 30,127
Unrestricted 30,377 30,006 16,769 17,456 12,883 17,143 (12) 2,217 255 (6,915)
Total net position $268,261 $281,160 $290,795 $296,827 $318,688 $321,663 $304,279 $311,543 $314,328 $300,016
$400,000
S350,000 -
S300,000
$250,000
$200,000 -
$150,000
$100,000
S50,000 -
S0 -I -I III -I -II -I -I
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
• Total Net Position ® Governmental Activities Business-type Activities
Comprehensive Annual Financial Report(CAFR)-143
CITY OF Yakima
CHANGE IN NET POSITION
Last Ten Fiscal Years(Amounts expressed in Thousands-Accrual Basis of Accounting) Page 1 of 2
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Expenditures
Governmental activities
General government $ 8,656 $ 8,512 $ 8,814 $ 8,668 $ 8,744 $ 11,307 $ 10,935 $ 11,992 $ 12,578 $ 11,570
Public safety 40,009 40,088 40,614 42,996 47,682 48,645 48,221 49,780 47,245 42,831
Utilities 1,190 828 670 658 794 1,729 455 524 708 576
Transportation 11,109 11,604 10,693 11,530 13,075 10,839 14,368 12,074 12,837 10,364
Economic environment 4,821 5,670 4,840 3,950 4,407 4,477 5,159 6,340 7,308 6,503
Public health services 86 87 22 24 18 640 682 614 626 759
Cultural and recreational 7,021 7,471 7,859 7,522 8,205 7,146 7,711 7,368 7,492 7,370
Interest on long-term debt 1,004 1,217 1,160 1,122 1,175 1,434 1,776 1,540 1,493 1,557
Total governmental activities 73,896 75,477 74,672 76,470 84,100 86,217 89,307 90,232 90,287 81,530
Business-type activities
Transit 7,929 8,365 8,564 9,085 8,806 8,891 9,045 9,187 9,490 9,092
Airport 1,407 1,825 1,846 2,012 2,236 1,976
Refuse 4,218 4,362 4,472 4,679 4,808 4,993 4,337 4,603 4,847 4,950
Wastewater 12,297 12,813 13,972 13,634 14,255 15,541 14,403 15,145 17,326 16,802
Water 5,748 5,654 5,546 5,834 6,368 7,111 7,297 7,567 7,749 7,928
Irrigation 1,733 1,811 1,884 1,891 2,071 2,078 2,135 2,276 2,363 2,329
Stormwater 1,028 1,240 1,317 1,318 1,322 1,351 1,609 2,052 2,890 2,411
Total business-type activities 32,953 34,245 35,755 36,441 39,037 41,790 40,672 42,842 46,901 45,488
Total Expenditures $106,849 $109,722 $110,427 $112,911 $123,137 $128,007 $129,979 $133,074 $137,188 $127,018
Revenues
Governmental activities
Charges for services
General government $ 12 $ 4 $ (2) $ 9 $ 32 $ 400 $ 421 $ 443 $ 419 $ 429
Public safety 2,539 2,183 2,088 2,385 2,075 7,077 8,504 9,081 8,681 8,357
Utilities 649 1,544 768 735 619 217 239 202 257 331
Transportation 59 259 225 232 245 12 47 20 44 41
Economic environment 1,673 1,719 2,258 1,231 1,520 2,398 1,730 1,478 1,476 1,900
Public health services 21 15
Cultural and recreational 2,070 2,100 2,216 2,122 2,618 3,896 3,922 3,823 3,990 4,097
Operating grants 6,378 7,981 10,507 10,848 10,093 5,126 6,700 8,132 6,982 10,362
Capital grants&conts 5,090 15,490 14,991 4,883 12,819 5,099 1,698 2,358 2,340 2,562
Total governmental activities 18,470 31,280 33,051 22,445 30,021 24,225 23,261 25,537 24,210 28,094
Business-type activities
Charges for services
Transit 931 935 1,015 1,047 1,252 1,368 1,354 1,408 1,347 1,091
Airport 931 1,236 1,314 1,344 1,428 1,481
Refuse 4,655 4,880 4,770 5,430 5,440 5,822 5,671 6,918 6,967 7,562
Wastewater 15,941 16,442 15,466 18,703 19,154 21,471 20,932 21,571 20,993 22,255
Water 7,097 7,058 6,887 8,599 8,126 8,650 8,582 9,007 9,177 10,069
Irrigation 2,646 2,711 2,718 2,901 2,986 3,148 3,048 3,053 3,087 3,102
Stormwater 1,707 1,976 2,170 2,183 2,142 2,176 2,272 2,383 3,684 3,719
Operating grants 2,019 2,410 2,911 2,713 2,703 2,547 3,206 2,817 2,602 2,938
Capital grants&conts 1,659 4,993 1,646 2,118 1,761 4,265 3,226 12,263 4,790 3,262
Total business-type activities 36,655 41,405 37,583 43,694 44,495 50,683 49,605 60,764 54,075 55,479
Total revenues $ 55,125 $ 72,685 $ 70,634 $ 66,139 $ 74,516 $ 74,908 $ 72,866 $ 86,301 $ 78,285 $ 83,573
144-Comprehensive Annual Financial Report(CAFR)
CITY OF Yakima
CHANGE IN NET POSITION
Last Ten Fiscal Years(Amounts Expressed in Thousands-Accrual Basis of Accounting) Page 2 of 2
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Change in net position
Governmental activities $(55,426) $(44,197) $(41,621) $(54,025) $(54,079) $(61,991) $(66,045) $(64,692) $(66,076) $(53,438)
Business-type activities 3,703 7,160 1,828 7,254 5,458 8,895 8,932 17,922 7,172 9,989
Total net position $(51,723) $(37,037) $(39,793) $(46,771) $(48,621) $(53,096) $(57,113) $(46,770) $(58,904) $(43,449)
General revenues and transfers
Governmental activities
Taxes
Property taxes $ 14,261 $ 14,535 $ 15,126 $15,565 $ 15,989 $ 16,131 $ 16,427 $ 18,283 $ 18,278 $ 19,839
Sales and use taxes 17,810 17,920 18,346 19,599 21,306 21,537 22,037 22,809 23,146 21,542
Other taxes and fees 12,710 12,241 11,910 12,454 12,289 12,301 12,587 11,989 13,453 14,591
State entitlements 3,739 3,589
Unrestricted invest earnings 556 403 272 309 101 371 452 688 711 991
Judgments and settlements 1,350 8 249
Miscellaneous 70 (64) 33 42 40 356 198 106 15 89
Extraordinary item (1,747)
Gain/(loss)disp cap asset (2,217) (922) (148) 73 403 (20) 29 217 (91) (1,191)
Transfers 4,188 3,927 3,718 6,172 6,372 6,643 8,021 9,563 8,263 8,918
Debt issue cost - - - - 489 - - - -Total governmental activities 51,117 51,629 49,257 54,214 56,989 58,669 59,759 63,655 64,024 63,032
Business-type activities
Sales and use taxes 4,490 4,485 4,449 4,762 5,081 5,457 5,566 5,855 5,887 6,171
Unrestricted invest earnings 100 21 9 11 6 5 (43) 5 7 12
Judgments and settlements 14
Miscellaneous 16 400 247 12 4 44
Gain/(loss)disp cap asset (17) (6) (529) 7 (98) (118) 43 309 28 87
Transfers (4,201) (3,892) (3,718) (6,191) (6,372) (6,643) (8,021) (9,563) (8,263) (8,918)
Total business-type activities 388 608 211 (1,411) (1,383) (885) (2,207) (3,382) (2,337) (2,604)
Total general revenues&transfers $ 51,505 $ 52,237 $ 49,468 $52,803 $ 55,606 $ 57,784 $57,552 $ 60,273 $ 61,687 $ 60,428
Change in net position
Governmental activities $ (4,309) $ 7,432 $ 7,636 $ 189 $ 2,977 $ (3,322) $ (6,286) $ (1,038) $ (2,051) $ 9,594
Business-type activities 4,091 7,768 2,039 5,842 4,076 8,010 6,725 14,541 4,836 7,385
Total change in net position $ (218) $ 15,200 $ 9,675 $ 6,031 $ 7,053 $ 4,688 $ 439 $ 13,503 $ 2,785 $ 16,979
Direct adj to beg net position (40,425) (17,823) 1,020 (7,261) (31,290)
Change in net position as restated $ (218) $ 15,200 $(30,750) $ 6,031 $ 7,053 $ 4,688 $(17,384) $ 14,523 $ (4,476) $(14,311)
Note: Adjustments to net position include a new utility billing system adjustment,and the institution of GASB statements 68,73
and 75.
Comprehensive Annual Financial Report(CAFR)-145
CITY OF Yakima
GOVERNMENTAL ACTIVITIES TAX REVENUES BY SOURCE
Last Ten Fiscal Years(Amounts Expressed in Thousands-Accrual Basis of Accounting) Page 1 of 1
Fiscal Property Sales& Other
Year Tax Use Tax Taxes/Fees Total
2009 $ 14,261 $ 17,810 $ 12,705 $ 44,776
2010 14,535 17,920 12,241 44,696
2011 15,126 18,346 11,910 45,382
2012 15,565 19,599 12,454 47,618
2013 15,989 21,306 12,289 49,584
2014 16,131 21,537 12,301 49,969
2015 16,427 22,037 12,587 51,051
2016 18,283 22,809 11,989 53,081
2017 18,278 23,146 13,453 54,877
2018 19,839 21,542 14,591 55,972
$70,000 -
$60,000 -
$50,000
$40,000
0 0
$30,000
w 0$20,000
$10,000
SO
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
® Property . Sales&Use ❑ Other Taxes/Fees
146-Comprehensive Annual Financial Report(CAFR)
CITY OF Yakima
FUND BALANCES OF GOVERNMENTAL FUNDS
Last Ten Fiscal Years(Amounts Expressed in Thousands-Modified Accrual Basis of Accounting) Page 1 of 1
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
General fund
Nonspendable $ 356 $ 67 $ 44 $ 42 $ 35 $ $ $ $ $ 10
Committed 1,170 1,359 1,438
Unassigned 8,486 8,643 8,812 9,738 9,692 7,874 5,867 7,097 7,392 7,614
Total general fund 8,842 8,710 8,856 9,780 9,727 7,874 5,867 8267 8,751 9,062
All other governmental funds
Nonspendable 592 604 694 623 632 648 655 667 915
Restricted 7,404 6,769 8,601 7,264 9,453 11,501 9,275 9,402 12,683
Committed 1,168 2,085 3,082 3,478 5,111 2,700 3,907 4,021 3,678
Assigned 991 829 975 2,405 2,104 1,643 1,814 1,256 5,969
Unassigned (366) (1,082) (533)
Reserved 2,943
Unreserved reported in:
Special revenue funds 6,591
Capital project funds 8,672
Total all other gov't funds 18,206 10,155 10,287 13,352 13,770 17,300 16,126 15,651 14,264 22,712
Governmental funds
Nonspendable 356 659 648 736 658 632 648 655 667 925
Restricted 7,404 6,769 8,601 7,264 9,453 11,501 9,275 9,402 12,683
Committed 1,168 2,085 3,082 3,478 5,111 2,700 5,077 5,380 5,116
Assigned 991 829 975 2,405 2,104 1,643 1,814 1,256 5,969
Unassigned 8,486 8,643 8,812 9,738 9,692 7,874 5,501 7,097 6,310 7,081
Reserved 2,943
Unreserved 15,263
Grand total governmental funds $ 27,048 $ 18,865 $ 19,143 $23,132 $ 23,497 $ 25,174 $ 21,993 $ 23,918 $ 23,015 $ 31,774
Note: Fund Balance categories were changed from Reserved and Unreserved to Nonspendable,Restricted,Committed,Assigned&Unassigned
Starting in 2011.
Comprehensive Annual Financial Report(CAFR)-147
CITY OF Yakima
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
Last Ten Fiscal Years(Amounts Expressed in Thousands-Modified Accrual Basis of Accounting) Page 1 of 1
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Revenues
Taxes and assessments $48,256 $48,273 $48,744 $3,685 $55,839 $58,653 $59,927 $62,432 $64,116 $67,244
Licenses and permits 712 768 842 892 818 2,093 2,218 1,913 2,123 2,391
Intergovernmental revenues 14,984 23,795 24,267 13,023 21,366 8,803 7,149 8,441 7,061 6,864
Charges for services 6,496 7,225 7,935 6,300 7,772 10,766 12,171 13,988 15,039 16,584
Fines and forfeitures 1,632 1,693 1,600 1,542 1,603 1,600 1,606 1,684 2,120 1,766
Contributions and donations 890 510 933
Investment earnings 753 531 380 508 186 411 484 725 749 1,040
Other revenue 1,834 2,156 2,561 3,550 2,400 5,014 1,811 1,708 1,750 1,689
Total revenues 74,667 84,441 86,329 79,500 89,984 87,340 85,366 91,781 93,468 98,511
Expenditures
Current
General government 11,626 11,594 11,886 11,558 12,285 12,742 13,179 14,345 14,914 15,011
Public safety 37,907 37,742 37,767 40,725 42,712 42,143 44,364 45,222 48,345 49,908
Utilities 1,653 1,496 1,224 1,164 1,190 1,551 1,643 1,640 1,857 2,001
Transportation 5,395 5,713 5,455 5,406 5,724 5,735 6,388 6,302 7,912 5,875
Economic environment 4,778 5,658 4,854 3,890 4,237 3,948 4,365 4,167 4,286 3,634
Public health services 86 87 22 24 18 610 651 594 596 592
Cultural and recreational 6,062 6,580 6,497 6,390 6,659 5,612 5,940 5,816 5,835 6,150
Capital outlay 10,642 19,312 17,144 6,743 20,021 27,104 11,990 9,788 5,913 6,747
Debt service
Principal 2,633 2,916 2,753 3,010 3,322 3,284 4,198 4,460 5,476 4,581
Interest&related charges 979 1,228 1,165 1,131 1,180 1,272 2,116 1,708 1,669 1,706
Total Expenditures 81,761 92,326 88,767 80,041 97,348 104,001 94,834 94,042 96,803 96,205
Exc(def)rev over(under)exp (7,094) (7,885) (2,438) (541) (7,364) (16,661) (9,468) (2,261) (3,335) 2,306
Other financing(sources)uses
Transfers in 6,139 5,299 4,986 6,220 5,844 9,593 9,033 10,367 7,874 13,763
Transfers out (5,426) (4,949) (4,631) (6,115) (5,727) (8,947) (9,065) (8,878) (7,973) (14,165)
Proceeds f/cap lease finance 149 577 310
Proceeds f/issuance LT debt 7,004 9,633 14,207 5,150 900 2,462 16,450
Proceeds f/intergov't loans 600 1,690 1,592 450
Premium issuance/LTdebt 488 1,672
Intergov't agreements (39) (97) (97) (97) (92)
Sale of capital assets 92 47 191 100 448 44 230 777 68 42
Other - 864 - 600 - - 8 - -Total other fin sources(uses) 8,370 3,003 2,618 1,158 10,904 16,569 5,356 3,166 2,431 16,090
Extraordinary item (1,747)
Net change in fund balances $ 1,276 $(4,882) $ 180 $ 617 $ 3,540 $ (92) $ (4,112) $ 905 $ (904) $16,649
Debt service as a percentage of
noncapital expenses 5.1% 5.7% 5.5% 5.6% 5.8% 5.9% 7.6% 7.3% 7.9% 7.01/0
148-Comprehensive Annual Financial Report(CAFR)
CITY OF Yakima
GOVERNMENTAL ACTIVITIES TAX REVENUE BY SOURCE
Last Ten Fiscal Years(Amounts Expressed in Thousands-Modified Accrual Basis of Accounting) Page 1 of 1
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Source
Property tax $ 14,261 $ 14,535 $ 15,126 $ 15,565 $ 15,989 $ 16,131 $ 16,427 $ 18,283 $ 18,278 $ 19,839
Sales&use tax 17,810 17,920 18,346 19,599 21,306 21,537 22,037 22,809 23,146 21,542
Utility&other taxes/fees 16,180 15,818 15,272 18,520 18,544 18,945 18,723 16,608 20,466 22,276
Total $ 48,251 $ 48,273 $ 48,744 $ 53,684 $ 55,839 $ 56,613 $ 57,187 $ 57,700 $ 61,890 $ 63,657
$70,000 -
S60,000
S50,000 - 0 0 0
$4Q000
$30,000 -
$20,000 -
$10,000 -
$0
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
® Property tax . Sales&use tax ❑ Other taxes/fees
Comprehensive Annual Financial Report(CAFR)-149
CITY OF Yakima
ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY
Last Ten Fiscal Years(Rate/1000-Dollar Amounts Expressed in Thousands) Page 1 of 1
Real Personal Total Total
Property Property Taxable Direct
Fiscal Assessed Assessed Assessed Tax
Year Count Value Value Value Rate
2009 32,463 $ 4,674,742 $ 429,574 $ 5,104,316 2.9392
2010 32,762 4,929,779 439,180 5,368,959 2.9907
2011 32,972 4,951,414 437,805 5,389,219 2.9715
2012 32,415 5,154,871 444,407 5,599,278 3.0559
2013 32,539 4,995,574 458,645 5,454,219 3.0895
2014 32,312 5,080,398 414,099 5,494,497 3.1188
2015 32,164 5,083,412 431,853 5,515,265 3.1239
2016 32,331 5,184,974 473,413 5,831,303 3.0879
2017 32,681 5,421,658 536,170 5,957,828 3.0830
2018 32,656 5,698,610 542,501 6,241,112 2.9942
$6,500,000
$6,000,000
$5,500,000
$5,000,000
$4,500,000 — I I I I I I I I I I
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
t Total Taxable Assessed Value
Source:Yakima County Assessor
150-Comprehensive Annual Financial Report(CAFR)
CITY OF Yakima
PROPERTY TAX RATES -DIRECT AND OVERLAPPING GOVERNMENTS
Last Ten Fiscal Years(Rate/1000) Page 1 of 1
City of Yakima Yakima County Yakima School District State
Fiscal Debt Total Debt Total Total School
Year Operating Service City Operating Service County Bonds M&O School Levy Library Total
2009 2.8886 0.0506 2.9392 1.7523 0.0524 1.8047 1.5720 2.7934 4.3654 1.9217 0.4483 11.4793
2010 2.9348 0.0559 2.9907 1.7994 0.0526 1.8520 1.5805 2.9006 4.4811 2.0918 0.4595 11.8751
2011 2.9185 0.0531 2.9716 1.7716 0.0489 1.8205 1.5335 2.8906 4.4241 2.2086 0.4529 11.8777
2012 3.0559 0.0545 3.1104 1.8511 0.0472 1.8983 1.6640 3.0667 4.7307 2.3983 0.4724 12.6101
2013 3.0895 0.0541 3.1436 2.0655 0.0001 2.0656 1.6607 3.0385 4.6992 2.5116 0.4763 12.8963
2014 3.1188 0.0197 3.1385 2.1059 0.0000 2.1059 1.7009 3.1316 4.8325 2.6149 0.4812 13.1730
2015 3.1239 0.0000 3.1239 2.0387 0.0000 2.0387 1.6835 3.1154 4.7989 2.2645 0.4762 12.7022
2016 3.0879 0.0000 3.0879 2.0181 0.0000 2.0181 1.6816 3.1252 4.8068 2.2550 0.4745 12.6423
2017 3.0830 0.0000 3.0830 2.0036 0.0000 2.0036 1.6116 3.0221 4.6337 2.0549 0.4737 12.2489
2018 2.9942 0.0000 2.9942 1.9468 0.0000 1.9468 1.5729 2.9352 4.5081 3.0683 0.4609 12.9783
16.0000
14.0000
12.0000 ■ ■
10.0000
■
8.0000
6.0000
4.0000 al
. MI IIII ■ 11111 1.
2.0000
0.0000 I I I I I I I I I I
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
® City . County ❑ Yakima Schools . State Schools . Library
Source: Yakima County Assessor
Note:Overlapping rates are those of local and county governments that apply to property owners within the City of Yakima. Not all overlapping
rates apply to all City of Yakima property owners(e.g.the rates for special districts apply only to the proportion of the government's property
owners whose property is located within the geographic boundaries of the district).
Comprehensive Annual Financial Report(CAFR)-151
CITY OF Yakima
PRINCIPAL PROPERTY TAX PAYER COMPARISON
(Amounts Expressed in Thousands) Page 1 of 1
2018 2008
Percentage Percentage
of Total of Total
Taxable Taxable Taxable Taxable
Assessed Assessed Assessed Assessed
Taxpayer Value Rank Value Value Rank Value
Washington Fruit&Produce $ 85,231 1 1.4% $
Walmart Stores 36,622 2 5.9/
Chiawana 34,915 3 0.6/
Frosty Packing 34,165 4 0.6/
John I Haas 33,411 5 0.5/ 24,830 10 0.3/
Shields Bag&Printing 31,819 6 0.51/0
Castle Creek Apartments 26,787 7 0.5/
Longview Fibre Paper&Packaging 29,634 8 0.51/0
Pacificorp/Pacific Power&Light 26,325 9 0.4/ 130,930 1 1.5%
Michelsen Packaging 23,327 10 0.4/
Zirkle Fruit 47,490 2 0.51/0
Darigold 40,900 3 0.5/
Snokist Growers 39,990 4 0.5/
Tree Top 39,490 5 0.51/0
Boise Cascade 36,680 6 0.4/
Washington Beef 32,610 7 0.4/
BNSF Railroad 26,130 8 0.3/
Jeld-Wen 24,840 9 0.3/
Total $ 362,236 11.3/ $ 443,890 5.2/
Source: Yakima County Treasurer
152-Comprehensive Annual Financial Report(CAFR)
CITY OF Yakima
PROPERTY TAX LEVIES AND COLLECTIONS
Last Ten Fiscal Years(Amounts Expressed in Thousands) Page 1 of 1
Collected Within the Collected Total Collection
Fiscal Total Year of the Levy in to Date
Year Levy for Percentage Subsequent Percentage
Ended the Year Amount of Levy Years Amount of Levy
2009 $ 15,676,832 $ 15,270,543 97.4% $ 406,292 $ 15,676,835 100.0%
2010 15,991,868 15,630,296 97.7% 361,573 15,991,869 100.0%
2011 16,485,263 16,105,108 97.7% 379,966 16,485,074 100.0%
2012 16,830,550 16,493,387 98.0% 338,304 16,831,691 100.0%
2013 17,242,183 16,870,392 97.8% 371,399 17,241,791 100.0%
2014 17,288,693 16,975,648 98.2% 310,606 17,286,254 100.0%
2015 17,624,958 17,325,866 98.3% 295,330 17,621,196 100.0%
2016 18,029,818 17,721,666 98.3% 254,820 17,976,486 99.7%
2017 18,367,991 18,040,023 98.2% 181,554 18,221,577 99.2%
2018 18,686,841 18,226,175 97.5% — 18,226,175 97.5%
$20,000,000
$18,000,000
$16,000,000
$14,000,000 — 1 I I I I I I I I I
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
• Total Collected
Source: Yakima County Treasurer
Note:Total Levy for the Year amounts have been adjusted to display revised information as received from the County Assessor.
Comprehensive Annual Financial Report(CAFR)-153
CITY OF Yakima
RATIOS OF OUTSTANDING DEBT BY TYPE
Last Ten Fiscal Years(Dollar Amounts Expressed in Thousands) Page 1 of 1
Governmental Activities Business-Type Activities
General Total Percent
Obligation Capital Wastewater Water Irrigation Primary of Per
Year Bonds Leases Bonds Bonds Bonds Gov't Income Population Capita
2009 $ 26,979 $ 10 $ 19,580 $ 1,804 $ 4,695 $ 53,068 3.6% 84,850 $ 625
2010 24,881 132 18,197 1,598 4,580 49,388 2.6% 91,067 542
2011 22,723 614 16,760 1,385 4,465 45,947 2.5% 91,630 501
2012 20,502 520 14,970 1,210 4,345 41,547 2.3% 91,930 452
2013 23,053 5,374 13,940 1,030 4,220 47,617 2.7% 92,620 514
2014 34,039 4,574 12,860 835 4,090 56,398 3.0% 93,080 606
2015 36,213 4,167 12,390 - 3,960 56,730 3.2% 93,220 609
2016 32,902 3,182 11,050 - 3,825 50,959 2.8% 93,410 546
2017 29,472 4,806 9,680 - 3,680 47,638 2.4% 93,900 507
2018 34,380 3,598 8,255 - 3,530 49,763 2.5% 94,190 528
$70,000.0000 -
$60,000.0000 -
I
$50,000.0000
i i i i
$40,000.0000
$30,000.0000 -
i
$20,000.0000 -
$10,000.0000
80.0000
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
GO Bonds 0 Leases ® Wastewater 0 Water ❑ Irrigation
Note: Details regarding the city's outstanding debt can be found in the notes of the financial statements. See the Schedule of Demographic and
Economic Statistics in this section for personal income.
154-Comprehensive Annual Financial Report(CAFR)
CITY OF Yakima
RATIOS OF GENERAL BONDED DEBT OUTSTANDING
Last Ten Fiscal Years(Dollar Amounts Expressed in Thousands) Page 1 of 1
Less: Percent of
Amount Estimated
Available Actual
General In Debt Taxable
Obligation Service Value of Per
Year Bonds Fund Total Property Capita
2009 $ 24,881 $ 537 $ 24,344 0.5% $ 287
2010 22,723 548 22,175 0.4% 244
2011 20,502 553 19,949 0.4% 218
2012 23,053 692 22,361 0.4% 243
2013 34,039 431 33,608 0.6% 363
2014 36,213 239 35,974 0.7% 386
2015 32,902 267 32,902 0.6% 353
2016 32,902 248 32,654 0.6% 350
2017 29,472 248 29,224 0.5% 311
2018 34,380 248 34,132 0.5% 362
S40,000 —
$35,000
$30,000 4 ,0744
$25,000
$20,000
$15,000 — 1 I I I I I I I I I
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
—i— Bonded Debt
Note: Excludes Local Improvement Districts'bonded debt and their respective funds in the Debt Service Funds.
Comprehensive Annual Financial Report(CAFR)-155
CITY OF Yakima
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
As of December 31,2018(Amounts Expressed in Thousands) Page 1 of 1
Estimated
Share of
Debt Estimated% Overlapping
Governmental Unit Outstanding Applicable Debt
Debt repaid with property taxes
Yakima County $ 28,966 36.1% $ 10,457
Yakima School District 97,610 92.9% 90,680
West Valley School District 34,255 60.4% 20,690
Union Gap School District 3,005 1.2% 36
Subtotal-overlapping debt $ 163,836 121,863
City of Yakima direct debt 34,380
Total direct and overlapping debt $ 156,243
City of Yakima Yakima County
$34,380 $28,966
Union Gap
School District
$3,005
West Valley
School District
$34,255
Yakima School District
$97,610
Source: Yakima County Assessor
Note: Overlapping governments are those that coincide,at least in part,with the geographic boundaries of the city. This schedule estimates the
portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of the City of Yakima. This process
recognizes that,when considering the government's ability to issue and repay long-term debt,the entire debt burden borne by the residents and
businesses should be taken into account. However,this does not imply that every taxpayer is a resident,and therefore responsible for repaying the
debt,of each overlapping government. Naches School Districts are excluded in the overlapping debt chart due to estimate debt overlap is less than
1%(0.37%).
The percentage of overlapping debt applicable is estimated using taxable assessed property values. Applicable percentages were estimated by
determining the portion of the county's taxable assessed value that is within the government's boundaries and dividing it by the county's total
taxable assessed value.
156-Comprehensive Annual Financial Report(CAFR)
CITY OF Yakima
LEGAL DEBT MARGIN INFORMATION
Last Ten Fiscal Years(Amounts Expressed in Thousands) Page 1 of 1
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Debt limit $404,191 $419,945 $409,066 $412,087 $412,087 $413,645 $424,379 $437,348 $468,083 $468,083
Net outstanding
indebtedness 28,469 27,127 25,768 22,401 30,504 43,235 49,962 43,662 29,244 31,667
Legal debt margin $375,722 $392,818 $383,298 $389,686 $381,583 $370,410 $374,417 $393,686 $438,839 $436,416
Total net debt applicable to
the limit as a percentage
of debt limit 7.0% 6.5/ 6.3/ 5.4/ 7.4/ 10.5/ 11.8/ 10.0/ 6.2/ 6.8/
Legal Debt Margin Calculation for fiscal year 2018
Total assessed value $ 6,241,112
Debt limit(7.5%)of total assessed value 468,083
I. General purpose legal debt margin
a. Councilmanic debt(without a vote)1.5%of total assessed value 93,617
Debt applicable to councilmanic limit:
General obligation bonds&other debt 44,593
Less:amount set aside for repayment of general obligation debt 12,926
Net debt applicable to councihnanic limit 31,667
Total legal debt margin-councilmanic 61,950
b. Voted general obligation debt(additional 1%Total assessed value) 62,411
Debt applicable to limit
II. Voted utility purposed debt(additional 2.5%total assessed value) 156,028
Debt applicable to limit
III. Voted open space and park debt(additional 2.5%total assessed value) 156,028
Debt applicable to limit
Total legal debt margin-all categories $ 436,417
Note: The State law provides debt cannot be incurred in excess of the following percentages of the value of the taxable property of the City. The
total indebtedness for general purpose with or without a vote cannot exceed 2.5%;for utility or open space,park,and capital facilities with a vote
not to exceed 5%.
Comprehensive Annual Financial Report(CAFR)-157
CITY OF Yakima
PLEDGED REVENUE COVERAGE - WATER AND WASTEWATER
Last Ten Fiscal Years(Amounts Expressed in Thousands) Page 1 of 1
Water& Water&Wastewater Revenue Bonds
Wastewater Less Net
Operating Operating Available Debt Service
Year Revenue Expenses Revenue Principal Interest Coverage
2009 $ 23,038 $ 12,143 $ 10,895 $ 1,535 $ 880 4.51
2010 23,500 12,372 11,128 1,590 950 4.38
2011 22,333 13,000 9,333 1,650 893 3.67
2012 27,302 13,110 14,192 1,165 831 7.11
2013 27,279 14,000 13,279 1,210 596 7.35
2014 30,122 20,708 9,414 1,275 809 4.52
2015 29,711 21,061 8,650 1,305 667 4.39
2016 30,578 22,346 8,232 1,340 551 4.35
2017 30,170 24,177 5,993 1,370 519 3.17
2018 32,324 24,430 7,894 1,425 440 4.23
$30,000
$25,000
$20,000 -
$15,000 - ' 0 .
$10,000 -
$5,000 I -..•._
' I I I I -
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
® Revenues 0 Expenses
Note:Operating expenses exdude depreciation,amortization and City taxes
158-Comprehensive Annual Financial Report(CAFR)
CITY OF Yakima
PLEDGED REVENUE COVERAGE -IRRIGATION
Last Ten Fiscal Years(Amounts Expressed in Thousands) Page 1 of 1
Irrigation Revenue Bonds
Irrigation Less Net
Operating Operating Available Debt Service
Year Revenue Expenses Revenue Principal Interest Coverage
2009 $ 2,646 $ 1,268 $ 1,378 $ 110 $ 211 4.29
2010 2,711 1,328 1,383 115 208 4.28
2011 2,714 1,336 1,378 115 204 4.32
2012 2,894 1,337 1,557 120 201 4.85
2013 2,982 1,443 1,539 125 197 4.78
2014 3,148 1,456 1,692 130 228 4.73
2015 3,048 1,570 1,478 130 192 4.59
2016 3,053 1,679 1,374 135 186 4.28
2017 3,087 1,736 1,351 145 181 4.14
2018 3,102 1,707 1,395 150 175 4.29
$4,000
$3,000 E r mE
$2,000 -
$1,000
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
® Revenues Expenses
Note: Operating expenses exclude depreciation,amortization and City taxes.
Comprehensive Annual Financial Report(CAFR)-159
CITY OF Yakima
DEMOGRAPHIC AND ECONOMIC STATISTICS
Last Ten Fiscal Years Page 1 of 1
Education
Level
in Years
Fiscal Personal Median Median of Formal School Unemployment
Year Population Income Earnings Age Schooling Enrollment Rate
2009 84,850 $ 1,493,832 $ 21,116 33.7 12.4 15,327 10.4%
2010 91,067 1,891,040 21,870 33.2 12.6 15,247 10.4%
2011 91,630 1,824,335 22,550 33.2 12.6 15,474 10.7%
2012 91,930 1,802,876 21,798 33.2 12.6 15,627 10.1%
2013 92,620 1,756,992 21,214 33.0 12.5 15,786 9.4%
2014 93,080 1,870,059 21,665 33.2 12.5 15,428 8.5%
2015 93,220 1,799,143 21,785 33.1 12.5 15,768 8.4%
2016 93,410 1,986,540 22,268 33.1 12.6 15,999 7.7%
2017 93,900 1,956,489 24,191 33.3 12.6 15,658 6.0%
2018 94,190 Not Yet Available 15,974 6.3%
100,000
95,000
90,000
85,000
80,000 - I I I I I I I I I I
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
-!- Population
Sources: Population-Office of Financial Management(OFM),Income,Age and Education-American Fact Finder/U.S.Census Bureau,School
Enrollment-Yakima School District and Unemployment Rate(seasonally adjusted/Yakima)-Employment Security Department.
160-Comprehensive Annual Financial Report(CAFR)
CITY OF Yakima
PRINCIPAL EMPLOYERS - YAKIMA COUNTY
Current Year and Ten Years Ago Page 1 of 1
2018 2008
Employees Rank Percentage Employees Rank Percentage
Manufacturers
Walmart-Yakima/Sunnyside/Grandview 1,700 1 1.3% 1,050 1 0.8/
Zirkle Fruit 1,500 2 1.1%
Washington Fruit 1,500 3 1.1% 430 5 0.31/0
Borton Fruit 1,212 4 0.9
Monson Fruit 1,023 5 0.8%
Washington Beef 800 2 0.61/0
Shields Bag&Printing 525 3 0.4/
Tree Top 475 4 0.41/0
Non-manufacturers
Virginia Mason Memorial Hospital 2,500 1 1.8% 1,830 1 1.5%
Astria Regional-Yakima/Sunnyside/Toppenish 1,770 2 1.3% 780 5 0.6/
Yakima School District,No.7 1,600 3 1.2% 1,723 2 1.4%
Yakama Nation Government Operations 1289 4 1.0%
Yakama Nation Enterprises 1,170 5 0.9
Yakima County % 1,000 3 0.81/0
Yakima Valley Farm Workers Clinic % 950 4 0.81/0
Total 15,264 11.4/ 9,563 7.6/
Sources: Number of employees are approximated via several sources,including New Vision and corporate websites. Percentages based on
information from the Employment Security Department(Civilian Labor Force).
Comprehensive Annual Financial Report(CAFR)-161
CITY OF Yakima
FULL TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION
Last Ten Fiscal Years-Adopted Budget Page 1 of 1
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
General Government 157.95 151.25 143.25 139.75 138.87 147.47 150.72 152.22 148.30 148.55
Police
Officers 137.00 138.00 140.00 139.00 143.00 145.00 145.00 145.00 148.00 148.00
Civilians 51.00 51.00 49.00 49.00 49.00 50.00 52.00 52.00 47.00 47.00
Fire
Firefighters and officers 84.00 84.00 84.00 84.00 83.00 86.00 96.00 100.00 101.00 100.00
Civilians 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00
Highways&Streets
Traffic Engineering 16.00 13.00 13.00 11.00 11.00 9.00 9.00 9.00 9.00 9.00
Street 27.00 26.00 24.00 24.00 23.00 23.00 22.00 22.00 22.00 22.00
Parks&Recreation 25.60 23.30 21.30 20.30 20.30 21.30 21.30 21.30 20.90 20.90
Total General Government 501.55 489.55 477.55 470.05 471.17 484.77 499.02 504.52 499.20 498.45
Neighborhood Development 7.75 6.75 7.75 7.75 7.00 8.00 7.00 7.00 7.00 7.00
Community Relations 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00
Cemetery 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00
Public Safety Communications 35.00 35.00 37.00 36.00 38.00 35.00 35.00 35.00 36.00 36.00
Airport 0.00 0.00 0.00 0.00 0.00 7.00 7.00 7.00 8.00 8.00
Transit 50.00 50.00 52.00 52.00 52.50 53.95 54.95 56.80 54.30 54.30
Refuse 19.00 19.00 19.00 20.50 20.50 20.50 20.00 20.00 21.00 22.00
Wastewater/Stormwater 69.50 69.50 69.50 69.00 69.00 69.20 70.20 70.20 72.20 72.20
Water 31.00 31.00 31.00 31.00 35.00 35.00 31.00 31.00 31.00 31.00
Irrigation 8.00 8.00 8.00 8.00 7.00 7.00 7.00 7.00 7.00 7.00
Equipment Rental 12.00 12.00 12.00 12.00 12.00 12.00 14.00 14.00 14.00 14.00
Public Works 10.00 9.00 9.00 9.00 8.00 9.00 9.00 9.00 9.00 10.00
750.80 736.80 729.80 722.30 727.17 748.42 761.17 768.52 765.70 766.95
162-Comprehensive Annual Financial Report(CAFR)
CITY OF Yakima
OPERATING INDICATORS BY FUNCTION
Last Ten Fiscal Years Page 1 of 1
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Police
Total arrests(in custody) 4,889 4,745 5,439 6,136 6,034 4,270 4,950 5,006 4,836 4,815
Parking violations 2,844 4,837 5,096 3,778 3,252 3,150 3,218 1,545 2,379 2,062
Traffic violations 17,559 15,303 11,849 11,436 13,270 13,953 13,437 14,241 16,238 13,510
Fire
Number of calls answered 9,737 10,011 8,439 9,439 8,232 7,606 8,987 9,318 9,690 10,063
Inspections 2,268 2,909 2,646 30 2,669 3,799 5,101 5,658 5,458 5,766
Highways and streets
Street resurfacing(miles) 6 5 2 2 8 23 3 22 2 4
Refuse
Refuse collected(tons/day) 100 102 105 103 107 100 90 104 116 109
Yard waste collected(tons/day) 19 19 19 19 17 19 14 19 19 32
Culture and recreation
Community Center admissions 96,483 118,867 122,870 125,040 124,683 125,428 117,881 110,136 125,382 126,516
Irrigation
Customers 10,587 10,597 10,595 10,601 10,619 10,619 10,619 10,620 11,545 12,225
Water
Customers 19,491 19,651 19,726 19,771 19,844 19,558 19,588 18,977 22,505 23,034
New connections 68 79 61 74 68 52 71 76 44 119
Water main breaks 17 5 7 4 3 5 5 7 18 6
Average daily consumption 11,581 10,338 10,040 10,200 10,307 10,518 10,899 11,057 10,661 10,421
(thousands of gallons)
Wastewater
Customers 24,061 25,240 25,441 27,421 26,298 27,598 29,956 27,098 31,169 31,729
Average daily sewage treatment 10,100 10,100 10,100 10,100 10,500 10,200 9,244 10,500 9,700 8,410
(thousands of gallons)
Note: The total arrests shown from 2012-2018 changed marginally due to the implementation of new software and parameters. Parking violations
were down in 2016 due to having only one officer instead of two for approximately 9 months of the year.
Comprehensive Annual Financial Report(CAFR)-163
CITY OF Yakima
CAPITAL ASSET STATISTICS BY FUNCTION
Last Ten Fiscal Years Page 1 of 1
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Public Safety
Police stations 2 2 2 1 1 1 1 1 1 1
Fire stations 5 5 5 5 5 5 6 6 6 6
Refuse
Collection trucks 14 15 16 16 21 22 22 21 21 21
Highways and streets
Streets(miles) 420 325 380 380 380 369 398 404 400 404
Streetlights 4,465 4,465 4,195 4,240 4,260 4,280 3,706 4,214 4,340 4,352
Traffic signals/Flashers 139 140 151 152 154 154 165 173 175 179
Culture and recreation
Parks acreage 386 386 352 352 351 346 393 436 403 393
Parks 32 32 34 34 34 34 35 39 36 35
Swimming pools 2 2 2 2 2 2 2 2 2 2
Tennis courts 26 24 24 24 22 24 24 24 24 24
Community centers 3 3 3 3 3 2 2 3 3 3
Water
Water mains(miles) 300 300 300 300 300 300 300 300 300 300
Fire hydrants(city owned) 2,239 2,249 2,254 2,279 2,285 2,285 2,285 2,345 2,357 2,384
Maximum daily capacity 36,520 36,520 36,520 36,520 36,520 36,520 36,520 36,250 36,250 36,250
(thousands of gallons)
Wastewater
Sanitary sewers(miles) 337 337 337 337 337 337 344 350 355 357
Storm sewers(miles) 105 105 105 105 105 105 105 138 148 148
Maximum daily capacity 21.5 21.5 21.5 21.5 21.5 21.5 21.5 21.5 21.5 21.5
(millions of gallons)
Note: Patrol unit numbers increase in 2013 due to the police vehicle take home program. Fire stations went up by 1 in 2015 due to the Fire services
agreement with Union Gap-the City of Yakima Fire Department budgets personnel,supplies and equipment for this station. Highways and
Streets were recalculated in 2010 due to program changes,in 2011 due to physical inventory and in 2015 due reconfiguration of assets.
164-Comprehensive Annual Financial Report(CAFR)
CITY OF Yakima
2018 GENERAL INFORMATION*
Statistics Animal License Fees-Rabies Vaccination Required
Date of incorporation 1886 1 Year License-Altered,New $15.00
Form of government Council-Manager 1 Year License-Altered,Renewal $12.00
Type of government Charter City Senior Citizens Lifetime-Altered $25.00
Location Central Washington Senior Citizens Lifetime-Not Altered $30.00
Land area 28.25 square miles 1 Year License-Not Altered $30.00
Rank in size-State 11 1 Year License-Not Altered,Renewal $25.00
Rank in size-County 1 Disabled/Guide Dog Free
Population 94,190 Replacement License $5.00
Assessed valuation $6,241,111,833
City employees(full-time equivalents) 766.95 Fire Protection
Election and voter registration Commissioned Fire Fighting Personnel 102
Number of precincts 59 Number of Non-Commissioned Personnel 4
Number of registered voters 42,560 Total Number of Fire Personnel 106
Police Protection
Property Tax Levy Commissioned Police Personnel 148
Regular Levy $18,686,841 Non-Commissioned Police Personnel 47
Total Number of Police Personnel 195
Sales Tax Rates 2017 Number of Calls for Service 145/day
State 6.50%
Transit 0.30% Utility and Franchise Tax Rates
City of Yakima 0.85% Electricity,Gas,Telephone 6%
Yakima County 0.15% Water,Wastewater 20%
Criminal Justice(County) 0.40% Stormwater 6%
Total Sales Tax Rate 8.20% Refuse 15%
TV Cable 6%
Parks and Recreation
Total Acreage 393 Utility Rates(2 months)
Number of Parks 35 Water-Average/Family of 4 $61.92
Number of Playgrounds 20 Each Unit $1.72
Major Facilities: Fisher Golf Course,two swimming Wastewater-Average/Family of 4 $120.32
pools, (one indoor,one outdoor),two water Each Unit $3.19
playground areas,16 ball fields(eight lighted),two Refuse(Carry-out Available for Additional Charge)
skate parks,24 tennis courts,six soccer fields,Harman Automated Collection
Center,Henry Beauchamp Community Center, 32 Gallon Cart $35.20
Washington Fruit Community Center,Tahoma 96 Gallon Cart $40.20
Cemetery,Dog Park Yard Waste
96 Gallon Cart $32.60
Bus Passes(1 month) Irrigation(per square foot) $.0352
Adult $25.00
Student $18.00 Water/Wastewater Customer Base
Senior Citizen/Disabled $9.00 Water(Inside the City) 22,918
Water(Outside the City 116
Licenses and Permits Issued Total Water Customers 23,034
2017 Business Licenses-sliding scale starts at Wastewater Residential(Inside the City) 29,189
$42.90 for 1-2 employees,maximum of Wastewater Residential(Outside the City) 66
$1,285.20 for over eighty employees 5,573 Wastewater Commercial 2,474
2017 Regulatory Licenses- Total Wastewater Customers 31,729
Varies from$11.00 to$1,000 445 Irrigation Customers 12,176
Refuse Accounts 32,743
Note: For informational purposes only-not intended for official or legal purposes.
Comprehensive Annual Financial Report(CAFR)-165
/66-Comprehensive Amoral Financial Report(CAFR)