Loading...
HomeMy WebLinkAbout12/06/2011 09 2012 Budget Policy Decisions 4 +,, • BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. • For Meeting of: December 6, 2011 ITEM TITLE: Council policy decisions required to complete the 2012 Budget. SUBMITTED BY: Don Cooper, City Manager Rita DeBord, Director of Finance and Technology Cindy Epperson, Deputy Director of Accounting and Budgeting CONTACT Cindy Epperson, 576 -6771 PERSON/TELEPHONE: SUMMARY EXPLANATION: Additional information to be distributed on Friday December, 2, 2011. Resolution Ordinance Other (specify) • Contract: Mail to: Contract Term: Amount: Expiration Date: Insurance Required? No Funding Source: Phone: APPROVED FORj/� r r City g SUBMITTAL: 'LX '1+rC[ U Cit Manager STAFF RECOMMENDATION: Take action on the various policy issues as set forth in the 2012 Preliminary Budget, so that staff can finalize the budget amounts and bring back an ordinance adopting the 2012 budget at the December 13, 2011 meeting. BOARD /COMMISSION RECOMMENDATION: ATTACHMENTS: Click to download ❑ CM memo to Council 41111 • • Transmittal Memo December 6, 2011 To: The Honorable Mayor and Members of City Council From: Don Cooper, City Manage Rita DeBord, Director Finance & Technology Cindy Epperson, Deputy Director Accounting and Budgeting Subject: Updated 2012 Proposed Budget Per state law, the City Manager is required to submit a budget, for the following year, for Council /public review by the first of November. The 2012 Preliminary Budget Executive Summary was presented to Council at the November 1, 2011 regular business meeting. This document included summary information regarding all of the City's funds, along with charts, graphs and explanations. This document also included a section titled "Policy Issues ", which lists significant program changes, major capital initiatives and personnel adjustments, if any. Subsequent to November 1 Council held a series of meetings to discuss the proposed budget and ®,. related policy issues, including public hearings on the entire budget and on proposed 2012 property taxes, both hearings were held on November 15 a public hearing on November 29 regarding a potential increase in Water, Wastewater, Refuse and Stormwater utility tax rate (of 6 %) to support General Government operations, and on the possible imposition of a $20 car tab fee for street preservation. (Should Council approve a 6% increase in the utility tax rate, as noted above, it would generate approximately $2 million annually.) • At the November 29 meeting, Council directed staff to prepare draft legislation that, if approved by Council, would enact the utility tax rate increase and to bring this legislation back to Council at the Council's regular business meeting on December 6 Council directed that funds generated from an increase in the Utility tax rate, if enacted, should be allocated based . on the Priorities of Government (POG) model. To assist Council with_their decision, the City Manager prepared a list of budget reductions he recommends be restored should the utility tax rate increase be approved by council. (Copy enclosed.) Council Actions Requested: ➢ Make decision on the General Government Budget Reductions Policy Issue; o Requires decision to approve/ reject the enactment of a utility rate increase; (if . decision to approve — requires Ordinance to be adopted - see separate agenda item); ➢ Make decisions on all other proposed Policy Issues regarding the 2012 Budget Once the above decisions have been made, staff will prepare the final 2012 budget and related • legislation and bring back to Council for adoption, (currently scheduled for December 13 Page 1 of 2 Attachments: • 1. Updated 2012 Proposed budget a. Includes updated 2012 revenue and expenditure projections and any adjustments and / or housekeeping items identified since presented to Council in November, along with narrative explanation of changes 2. 2012 General Government Budget: a. Priorities of Government Allocation Comparison Worksheet, includes: >Original POG Budget Reductions >With Supplemental Budget Reductions, and With Revenue from Utility Tax Increase and related budget restorations b. Policy Issue: List of Budget Reductions & Recommended Reinstatements ➢Includes copy of City Manager's memo to Council regarding allocation of revenues should the utility tax rates be increased 3. Policy Issues: All Other 2012 Policy Issues • Page2of2 • Updated 2012 Proposed Budget (asofl2/6/i1) ® Updated 2012 Proposed Budget (as of 12 - 6 - 11) , Since the budget was presented at the first of November, we have continued to evaluate what was included the revenue and expenditure projections for 2012. Following is a list of changes currently incorporated in the 2012 budget prior to any modifications resulting from the Council's budget decisions. General Government Revenues As discussed in previous budget presentations, there was an error in the state's July distribution of sales tax that resulted in a year to date actual amount that is less than originally anticipated. Since recent months of sales tax collections have been sluggish, this revenue has been reduced by $100,000 in 2012. Additionally, the Governor's budget proposal targeted reductions in state - shared revenue to local governments. The original proposal was the elimination of Liquor Excise Tax and Profit distributions as of July 1, 2011. Since the Governor's first proposal, the initiative on liquor distribution passed at the November general election. However, it is likely that our share of any state revenue reductions will be a similar amount, therefore, the original budget of $1,033,000 has been reduced by $516,500, or 50 %. Expenditures The supplemental budget reduction proposal was inserted into the budget based on Council's direction ® at their November 8 meeting. In some cases, the salaries had minor allocations to other funds, so that the net change of the reductions in General Government was slightly less, although citywide, the full savings were realized. The allocation of Engineering staff to Stormwater was originally entered as a payroll split distribution, however, the utility wants General Fund to bill them for time spent, so that the salaries were restored, but an offsetting revenue of $50,000 was added. Minor corrections and payroll updates have also been incorporated. All of these changes netted to a decrease of about $650,810 in expenditures, and a decrease of $566,500 in revenues, which added $84,310 to the ending 2012 fund balance. Other Budget Adjustments Other budget adjustments include: • The major increase in both revenue and expenditures in the other funds was a grant award of $2.41 million in the Arterial Street Fund for a $2.7 million project to complete widening of Nob Hill Blvd from 49 to 64 Avenue. • The Public Safety Communications fund erroneously had the number of dispatchers over budgeted by one position, reducing that fund expenditure by $63,400. • The Public Facilities District Board authorized an additional transfer of $46,000 to the Convention Center capital fund. • Transit re- evaluated their capital projects in light of the sluggish sales tax and timing of grant awards, reducing the capital revenue by $315,000, and expenditures by $708,000. • Several funds were affected by the personnel cuts from the General Government supplemental reductions, (as mentioned above), and other miscellaneous payroll updates. In total, expenditures in non - general government funds were increased by $2,003,968, and revenues were increased by $2,121,000 from the preliminary budget. Page _1 of 2 Summary When added to the changes in General Government funds, total expenditures increased by a net of $1,353,157, and total revenues increased by $1,554,500, so that the total citywide expenditures are $188,798,183, and total citywide revenues are $179,381,233. All fund balances remain within minimum guidelines. The citywide summary tables of the total City 2011 and 2012 have been updated and are attached for reference. Page2of2 2011 VS. 2012 . EXPENDITURE BUDGET COMPARISON (as of 12/6/11) 11 vs. '12 2011 2011 Amended Year -End Amended - 2012 Budget Fund Estimate Budget Budget. % Change General $48,421,164 $49,328,886 $48,260,073 (2.2 %) Parks 4,042,476 4,042,938 , 4,000,697 (1.0 %) Street & Traffic 5,212,161 5,218,691 4,955,371 (5.0 %) General Government Total (1) $57,675,801 $58,590,515 $57,216,141 (2.3 %) Community Development $4,063,080 $4,144,772 $1,831,765 (55.8 %) Utilities /Other Operating . 60,628,276 61,703;537 59,952,778 (2.8 %) Capital Improvement 42,972,782 53,235,457 38,516,106 (27.6 %) Contingency /Operating Reserves 3,056,386 9,902,608 10,170,424 2.7% Employee Benefit Reserves 13,918,791 14,381,113 14,337,284 (0.3 %) ® General Obligation Bonds 3,236,077 3,350,077 3,349,336 (0.0 %) LID Debt Service 285,000 285,000 285,000 0.0% Water /Sewer Revenue Bonds 2,862,054 2,862,054 2,636,124 (7.9 %) • Trust and Agency Funds 148,099 169,129 503,225 197.5% Total - Citywide Budget (3) $188,846,346 $208,624,262 $188,798,183 (9.5 %) Legend: (1) General Government - The 2012 General Government expenditure budget is approximately $1.4 million or 2.3% below the 2011 amended budget. (2) The 2012 budget includes an estimate of the 2012 grant awards only. The 2011 amended budget includes the 2011 grant awards and awards carried forward from the previous years. • (3) Citywide Expenditures - The Citywide Expenditure budget is approximately $19.8 million or 9.5% • below the 2011 amended budget. 110 • . • • CITY OF YAKIMA • 2012 BUDGET BY CITY FUNCTIONAL GROUPING (as of 12/6/11) 2010 , 2011 2011 I 2012 2012 2012 • 2012 2012 Actual Amended Year -End Preliminary vs 2011 Beginning Projected Est. Ending Expenditures Budget Estimate Budget Amended Fund Balance Revenue Fund Balance General Government City Council $197,013 $203,061 $192,878 $205,214 1.1% City Manager 502,075 509,913 506,427 307,925 (39.6 %) ' State Examiner 92,528 103,000 101,000 106,000 2.9% Records 422,071 411,556 409,976 469,410 14.1% Financial' Services 1,350,881 1,386,046 1,368,211 1,359,619 (1.9 %) Human Resources 431,156 447,436 474,066 449,628 0.5% Legal 1,057,092 1,139,157 1,107,397 1,060,063 (6.9 %) Municipal Court 1,206,063 1,234,194 1,177,814 1,256,587 1.8% Purchasing 415,042 452,835 452,835 527,534 16.5% Hearing Examiner - 62,537 39,500 39,500 1 31,000 (21.5 %) Environmental Planning 699,196 678,679 665,608 622,101 (8.3 %) Code Administration 1,449,452 1,330,361 . 1,270,641 1,208,765 (9.1 %) hldigent Defense • 467,697 480,000 480,000 481,000 0.2% Police 22,045,777 22,718,620 22,283,841 22,581,273 (0.6 %) Fire 9,255,216 8,929,340 8,794,947 9,063,694 1.5% Police Pension • 1,368,431 1,404,590 1,389,650 1,186,350 (15.5 %) Engineering 954,014 ' 757,250 748,588 702,274. (7.3 %) City Hall Maintenance " • .380,399 352,127 350,049 357,016 1.4% Information Systems 2,268,763 2,568,136 2,521,528 2,370,936 (7.7 %) Utility Services 1,119,629 1,305,084 • 1,295,207 1,342,110 2.8% Intergovernmental 372,948 257,439 257,439 240,299 (6.7 %) Nonrecurring Expenses . - 208,287 208,287 - (100.0 %) Transfers • 2,412,206 2,412,275 2,325,275 2,331,275 (3.4 %) Total General Fund 48,530,186 . 49,328,886 48,421,164 48,260,073 (2.2 %) $4,226,072 $48,169,610 $4,135,609 • • Parks & Recreation. - 4,062,236 4,042,938 4,042,476 4,000,697 . (1.0 %) 341,093 4,049,765 390,161 Street & Traffic Operations . • 5,337,910 5,218,691 5,212,161 4,955,371 " (5.0 %) 1,045,092 5,055,310 1,145,031 Total General Government Funds 57,930,332 58,590,515 57,675,801 57,216,141 (2.3 %) 5,612,257 57,274,685 5,670,801 Page 1 of 5 2010 2011 2011 2012 2012 2012 2012 2012 ,Actual Amended Year -End Preliminary vs 2011 Beginning Projected Est. Ending • • Expenditures Budget Estimate Budget Amended Fund Balance Revenue Fund Balance Other Operating/Enterprise j . Economic Development 223,983 669,372 321,428 329,136 (50.8 %) 225,990 272,000 168,854 Community Development 4,104,770 4,144,772 4,063,080 j 1,831,765 (55.8 %) 891,338 1,800,901 860,474 Community Relations 513,131 656,954 655,467 594,554 (9.5 %) 741,642 494,950 642,038 Community Services 64,387 • 108,215 82,320 - (100.0 %) - - - Growth Mgmt /Commute Trip Red Fund 23,144 26,601 , 26,601 - (100.0 %) - - - . Cemetery 245,460 262,463 261,456 265,699 1.2% 57,860 243,550 35,711 Emergency Services 1,093,525 1,121,904 1,121,696 1,199,489 6.9% 64,553 1,196,026 61,090 Public Safety Communications 3,068,448 3,341,497 3,302,790 3,488,273 4.4% 296,553 3,402,343 210,623 Police Grants 914,321 1,341,682 1,275,792 1,101,962 (17.9 %) 507,148 1,161,870 567,056 . Downtown Improvement District 204,638 236,451 236,451 235,962 (0.2 %) 26,712 251,340 42,090 Trolley (Yakima Interurban Lines) 150,422 135,277 99,940 11,368 (91.6 %) 16,177 1,576 6,385 � Front Street Business Improvement Area 3,248 5,000 5,000 5,000 0.0% 6,153 3,535 4,688 Tourist Promotion 1,442,044 1,400,148 1,400,149 1,447,373 3.4% 162,915 1,443,450 158,992 Capitol Theatre . • 284,749 285,527 285,527 346,200 21.2% 99,527 324,177 77,504 Public Facilities District Revenue - Convention Ce 641,133 605,000 605,000 719,000 18.8% 205,668 645,750 132,418 Tourist Promotion'Area . 388,980 378,205 378,205 j 586,000 54.9% 414 586,000 414 Public Facilities District Revenue - Capitol TheatrE 493,964 468,000 468,000 517,000 10.5% 53,357 500,500 36,857 Recovery Program Grants 387,011 426,989 419,426 - (100.0 %) - - - Storm Water Operating 1,801,236 2,225,207 2,223,899 1,936,334 (13.0 %) 678,053 2,035,000 776,719 • Transit • 7,209,479 7,472,066 7,408,235 7,697,952 3.0% 1,007,710 7,302,972 612,730 . Refuse 4,802,640 4,980,373 4,834,165 5,117,429 2.8% 407,423 4,987,190 277,184 Sewer Operating 17,574,185 ! 18,830,904 18,653,200 18,458,559 (2.0 %) 1,362,893 18,094,562 998,896 Water Operating 7,648,497 7,895,628 7,857,912 7,782,012 (1.4 %) 1,620,989 7,714,485 1,553,462 Irrigation Operating 1,862,091 1,541,669 1,541,359 1,444,937 (6.3 %) 340,406 1,618,700 514,169 Equipment Rental 4,915,678 5,633,318 5,566,068 5,290,111 (6.1 %) 4,265,680 5,367,333 4,342,902 Environmental Fund - 388,824 485,934 469,950 192,950 (60.3 %) 285,071 . 150,000 242,121 Public Works Administration • 1,046,827 1,169,153 1,128,240 1,185,478 1.4% 405,894 1,185,331 405,747 Total Other Operating/Enterprise 61,496,815 65,848,309 64,691,356 61,784,543 (6.2 %) 13,730,126 60,783,541 12,729,124 111 . . Paglik III • • • • • 2010 2011 2011 2012 2012 2012 2012 2012 Actual Amended Year -End Preliminary vs 2011 Beginning Projected Est. Ending • Expenditures Budget Estimate Budget Amended Fund Balance Revenue ' Fund Balance • Capital Improvement . Arterial Street 3,383,341 . 4,811,547 3,222153 4,554,478 (5.3 %) 227,413 4,437,351 110,286 C.B.D. Capital Improvement 1,048,433 132,264 112,255 132,277 0.0% 412,939 39,200. 319,862 Capitol Theatre Construction 4,439,534 65,045 65,000 - (100.0%) 59,227 - 59,227 Yakima Revenue Development Area - 800,000 800,000 850,000 6.3% - 850,000 - Parks Sr Recreation Capital 673,520 ! 1,492,770 1,464,000 80,000 (94.6 %) 99,295 - 19,295 .Fire Capital 1,355,703 841,500 839,459 196,459 (76.7 %) 221,892, 126,072 151,505 Law & Justice Capital 895,634 1,154,231 1,152,804 732,134 (36.6 %) 238,207 . 506,344 12,417 Public Works Trust Construction 910,805 744,411 675,827 718,382 (3.5 %) 647,991 548,906 478,515 REET 2 Capital Construction 751,048 1 1,236,822 941,822 506,822 (59.0 %) 280,126 452,000 • • 225,304 L.I.D. Construction Control 35,387 - - n/a - - - Storm Water Capital 153,485 1,024,794 1,023,849 433,000 (57.7 %) 452,541 244,794 264,335 . Transit Capital'Reserve 2,281,234 • 971,556 720,000 685,000 (29.5 %) 861,134 595,000 . 771,134 Convention Center Capital Improvement 574,541 525,143 525,143 150,000 (71.4 %) 281,880 226,500 358,380 • Cum. Reserve for Capital Improvement • 7,405,455 14,872,978 14,210,547 8,917,000 (40.0 %) 3,112,037 6,067,166 262,203 Wastewater Facilities Capital Reserve 799 50,000 50,000 50,000 0.0% 728,516 150,500 829,016 Sewer Construction 467,928 4,768,500 ' 4,009,610 3;800,000 . (20.3 %) 2,389,311 2,850,000 1,439,311 Domestic Water Improvement, - 351,248 3,902,000 1,807,000 4,450,000 . 14.0% 3,474,486 4,600,000 3,624,486 ' Wastewater Facilities 2,423,131 13,800,879 9,383,879 8,145,000 (41.0 %) 5,217,095 6,121,000 3,193,095 Irrigation System Improvement 2,470,183 2,041,017 1,969,434 4,115,554 101.6% 2,083,314 2,708,500 676,260 Total Capital Improvement 29,621,409 53,235,457 42,972,782 38,516,106 (27.6 %) 20,787,404 30,523,333 12,794,631 • Contingency /Operating Reserves Contingency Fund 46,356 I 200,000 •127,614 200,000 0.0% 157,750 50,000 7,750 FRS /Capitol Theatre Reserve 71,927 71,927 . 71,927 71,927 0.0% 310,338 500 238,911 Risk Management 3,014,749 9,630,681. 2,856,845 9,898,497 2.8% 864,254 9,961,000 926,757 Total Contingency /Operating Reserves 3,133,032. 9,902,608 3,056,386 10,170,424 • • 2.7% . 1,332,342 10,011,500 1,173,418 • . Page 3 of 4 2010 j 2011 2011 2012 2012 2012 2012 2012 Actual Amended Year -End j Preliminary vs 2011 Beginning Projected Est. Ending Expenditures Budget Estimate Budget Amended Fund Balance Revenue Fund Balance Employee Benefit Reserves Unemployment Compensation 188,121 312,477 206,077 318,064 1.8% 324,387 173,000 179,323 Employees Health Benefit 10,364,643 j 11,026,761 10,939,980 11,219,378 L7% 1,991,005 11,243,185 2,014,812 Workers' Compensation 1,222,828 , 1,352,030 1,271,189 1,363,785 0.9% 1,124,244 1,114,600 875,059 • Wellness /EAP Fund 63,896 79,885 63,885 92,000 15.2% 143,483 60,000 111,483 Firemen's Relief & Pension 1,547,509 1,609,960 1,437,660 1,344,057 (16.5 %) 812,358 1,387,500 855,801 Total Employee Benefit Reserves 13,386,997 14,381,113 13,918,791 j 14,337,284 (0.3 %) 4,395,477 13,978,285 4,036,478 Trust and Agency Funds Cemetery Trust 10,050 � 5,500 5,500 5,500 0.0% 603,099 16,500 614,099 YakCorps Agency Fund - 163,6 142,599 497,725 0.0% 21,030 526,756 50,061 Total Trust and Agency Funds 10,050 169,129 148,099 503,225 197.5% 624,129 543,256 664,160 Debt Service L.I.D. Guaranty - - - - n/a 80,087 50 80,137 PFD Debt Service 1,014,286 1,014,136 1,014,136 j 1,018,253 0.4% 170,564 1,019,594 171,905 General Obligation Bonds 2,225,916 2,335,941 2,221,941 2,331,083 (02 %) 370,920 2,334,739 374,576 L.I.D. Debt Service 361,912 285,000 285,000 285,000 0.0% 14,243 274,000 3,243 Water - Irrigation /Sewer Bonds 2,863,041 2,862,054 2,862,054 2,636,124 (7.9 %) 2,372,254 2,638,249 2,374,379 Total Debt Service 6,465,155 .; 6,497,131 6,383,131 6,270,460 (3.5 %) 3,008,068 6,266,632 3,004;240 Total City Budget $172,043,790 1 $208,624,262 $188,846,346 1 $188,798,183 (9.5 %) $49,489,803 $179,381,232 $40,072,852 • • el Pa g eif 4 • • General Government 2012 Budget Reduction • Policy Issue (12/6/11) • • • • City of Yakima Priorities of Government Allocation Comparison 2012 General Government Budget — Original POG Budget Proposal — — Supplemental Budget Proposal,— Utility Tax Rtor esations (1) (2) (3) (4) `(5) (6) (7) ;(8) Original Preliminary ;< 11/8 Mod Modified Revised Modified Budgeted Proposed Budget Supp. l x Bud got:.' POG City M r 1 y Budget POG Reductions POG% Proposal Reductions j "_(3 q) 1Y g 0 Percent " Proposal (6 +7)"_, - Percent Revenue $57,841,185 $616,500 0:$57,224,685 $Z000,000 :'::-S59',2,24; 685';r Priority of Government Px q Public Health & Safety $1,188,100 68.8% $39,817,433 $107,600 $$3,9 ;709;833•: 69.5% $915,600 $40,625;433.. 69.5% Resource Management • ' 26,100 ' 14.6% 8,425,527 437,400 7,988,127" 14.0% - 304,800 8,292,927 14.2% 1 Economic Development ' 80,100 '5.2% 2,983,803 162,000 `'' t 2 821 8031 4.9% 29,000 h :x;2,850,803':= 4.9% Quality of Life 50,100 7.0% 4,050,111 50,000 , 4,000,111; 7.0% 4;000,111;' 6.8% Customer Service & Comm. 67,300 : • 3.4% ' '1,983,292 0 ': ;;31;983;29 - ' 3.5 %" 60,600 ;a',s _=' 3.5% Strategic Partnerships 0 . 1.0% 606,784 0 f =' ; ! ' =`' .6O6 7 84: r 1.1 :6067841` 1.0% Total $1,411,700 100.0% $57,866,950 $757,000. ;$57,109,950`: 100.0% $1,310,000 . ','''$5,8;419,;-95 . 0,, 100.0% f S. F „ _ Estimated Increase /(Decrease) in Cash ($25,765) $114,735 - $690,000 $804,735-5= Estimated Beginning Cash Balance 5,612,257 '5,612257•' - � *`5;612 ' Estimated Ending Cash Balance .. $5,586,492 ' :i$5 ;726;992 - , $6,416 992 enditure Bud et in Reserve 9.65% ` "':=�'` % Percent of 2012 Annual Ex 8 p g. 10:0/ °` - �1 098/ • 12/2/2011 2012 Budget POG Reduction Summary (12/6/11) POG Reductions Original Proposed Priority of Government FTE's Reduction Restoration Public Health & Safety Police 6 (vacant) Patrol Officers 6.00 $530,000 $530,000 4 Police Cars /other equipment /Academy 198,000 Close Airport Substation 19,000 0 1 (vacant) Crime /Int Analyst 1.00* 63,700 0 Fire Transfer 1 Position - EMS Fund 80,000 0 1 (vacant) Firefighter - YVTech Program Elimination 1.00 80,000 80,000 Overtime Adjustment 80,000 0 Municipal Court Eliminate Overtime for Courtroom Security 10,000 0 Finance & Technology Reduce 099 Transfer (for Dispatch) 50,000 0 • Community & Economic Development - Code Admin. Transfer .70 Code Inspector to Stormwater 50,000 0 Eliminate Contribution to Vehicle Replacement 1,400 0 1 (vacant) CED Office Administrator (split allocation) 1.00* 18,600 0 1 (vacant) Permit Technician 1.00* 61,200 0 Street & Traffic Operations Reduce Operating Supplies /Signals 5,000 0 _ Reduce Contract Labor /Signals 2,500 0 2 (vacant) Sign Specialists 2.00* 121,700 0 Reduce Professional Services - Traffic Studies 15,000 0 7.00 1,188,100 808,000 • Resource Management City Management - Human Resources Reduce Misc. Operating Costs - Human Resources 5,300 0 Community & Economic Development Engineering allocation CED Office Admin. (see Pub. Saf.) 12,200 0 • City Hall allocation CED Office Admin. (see Pub. Saf.) 8,600 0 0.00 26,100 - 0 Economic Development Community & Economic Development - Planning • Transfer .40 Asst. Planner - Parks 26,400 0 Planning allocation CED Office Admin. (see Pub. Saf.) 23,700 0 Street & Traffic Operations Reduce Operating Supplies (Street Maintenance) 29,000 29,000 • Reduce Prof. Services (Large Trees) - . 500 0 Reduce Small Tools 500 0 0.00 80,100 29,000 Quality of Life • Parks 1 (vacant) Admin Assoc /Move Planning Assoc. (net) 1.00* 50,100 0 Customer Service /Communications • City Management - City Clerk Reduce Public Records Clerk -10 Months 0.00 • 67,300 60,600 • Total 13.00 $1,411,700 $897,600 Net Reduction (this page) 6.00* $514,100 2012 Budget Supplemental Reduction Summary (12/6/11) 410 Supplementary Reductions • Proposed Priority of Government • FTE's , Total . Restoration Public Health & Safety • Community & Economic Development . 1 (filled) Fire Code Inspector 1.00 F $67,600 $67,600 City Manager / Legal . 1 (filled) Legal Assistant (split allocation) 1.00 F 31,500 31,500 Temp. Legal Assistant (split allocation) 8,500 8,500 2.00 . 107,600 107,600 Resource Management • Finance 1 (filled) Financial Services Specialist • 1.00 F 62,000 62,000 City Management • Asst. City Mgr /Reinstate CED Director (vacant) 1.00 V 118,500 118,500 1 (filled) Executive Assistant - City Manager 1.00 F 84,300 84,300 • 1 (vacant) Specialist - Human Resources 1.00 V* 58,200 • • 0 Legal Assistant (split allocation) 31,500 31,500 Temp. Legal Assistant (split allocation) 8,500 8,500 Community & Economic Development . . 1 (filled) Construction Inspector . 1.00 F* 74,400 0 5.00 437,400 304,800 0 Economic Development • . . Community & Economic Development - Planning . 1 (vacant) Comm. Development Specialist 1.00 V* • 28,400 0 • . Modify Sup. Planner - Sr. Planner 33,600 0 Street & Traffic Operations . Reduce Vehicle Replacement 100,000 • 0 . . • 1.00 • 162,000 0 • Quality of Life Parks • Reduce Tree Maintenance 7,500 0 Reduce Small Tools Replacement 1,000 • 0 Reduce Maintenance Temporaries 8,000 ' 0 • • Reduce Fertilization 3,000 0 Reduce Overtime for Maintenance _ • 2,000 ' 0 Reduce Afterschool Program 7,000 0 • Reduce Parks Movies 1,500 0 Reduce Summer Playground Program 6,000 • 0 Reduce Overtime for FPGC 2,000 0 • Reduce Franklin Pool Temporaries 5,500 0 . • Reduce Ball Field Maintenance 6,500 0 • . 0.00 50,000 0 • , Total 8.00 • $7 57,000 $412,400 • 40 . .- . . . . . . • • . .. Net Reduction (this page) 3.00* $344,600 Total POG & Supplemental Reductions 9.00* $858,700 MEMORANDUM To: The Honorable Mayor and members of the Yakima City Council From: Don Cooper, City Manager Date: December 1, 2011 Re: Allocation of "in -lieu utility revenues" If the 6% increase in the "in -lieu utility tax" is approved by the City Council, I would propose that those funds be allocated in the following manner. The allocation of the Public Safety portion (68.8% or $1,376,000) is recommended as follows. 1. Restore six police officer positions (patrol officers only): $530,000 • a. Equipment for those positions: $149,664 Four police cars ($120,864) Six radios ($14,400) • Four light bars ($14,400) 2. Police Academy training: $48,000 3. Restore firefighter position: $80,000 4. Reserve funds for estimated 2013 state revenue reductions (Public safety portion): $344,000 5. Restore legal assistants' positions (public safety portion): $40,000 6. Restore fire inspector position: $67,600 7. Reserve funds in anticipation of 2012/2013 state revenue reductions: $116,738 The non-public safety allocation (31.2% or $624,000) is proposed to be allocated as follows. 1. Reserve funds for 2013 state revenue reductions: $195,000 2. Restore positions in City Manager's office: $202,500 • 3: Restore Public Records Clerk from 1 4 of 3 ( / year to 3 /4 of year). $60,600 • 4. Restore Legal Assistants (non - public safety share): $40,000 5. Restore Financial Service Specialist: $62,000 6. Restore operating supplies (street maintenance): $29,000 7. Reserve funds for 2012/2013 state revenue reductions: $34,900 As proposed, all of the supplemental layoffs of active personnel (except the construction inspector which is recommended for elimination due to lack of construction activity) would be restored. The other position eliminations or reductions proposed in the Priorities of Government (POG) model and the supplemental reductions are proposed to remain in place. I have recommended additional reserve funds ($143,636- 211,236) due to the unknown potential impacts of state shared revenue reductions. This amount equals between 5-7% of the anticipated state shared revenues. Given the uncertainty of the situation, I believe it is prudent to provide the City Council greater ability to address the potential uncertainties of 2012/2013. Once the revenue picture becomes clear, the Council may wish to restore some of the eliminated vacant positions depending upon need. At this point in the process there are too many unknowns; therefore the need for greater flexibility is suggested. • • • • • • • • All Other 2012 Budget • Policy Issues (12/6/11) • • • • POLICY ISSUE SUMMARY • CITY MANAGEMENT Purchasing Proposed Personnel Policy Issue Request / Justification Funding Source Salary / Benefits Non - Personnel Comments Council Action • Add one Buyer I Position • Yakima County Elim. Temp $19,000 Budgeted (Delete part -time Temporary) via allocation Add Buyer $63,500 Increase $44,500 2011 City Allocation (50 %) $226,755 2011 County Allocation (50 %) $226,755 $453,510 With New Position: 2012 City Allocation (43 %) $225,239 2012 County Allocation (57 %) $298,572 • • Revenue Budgeted $523,811 Net City Allocation 2011 -2012 ($1,516) • Stormwater Proposed Personnel Policy Issue Request 1 Justification . Funding Source Salary / Benefits Non- Personnel Comments Council Action 2012 Stormwater Reserve Fund Unbudgeted Create Reserve Funds for Stormwater (Note: request Council direction regarding desire to develop a Stormwater reserve policy.) • • Page 1 of 5 • • • Wastewater • Proposed Personnel Policy Issue Request / Justification Funding Source Salary / Benefits Non- Personnel Comments Council Action Wastewater Connection Charge Wastewater Fund Budgeted Done (11-15-11 Council meeting) Revision Wastewater Rates for 2012 — 2014 Customers of the Revenue: Budgeted Rate Increase of 5.1% annually for each Wastewater Utility 2012 $737,750 of the next 3 years 2013 $739,750 2014 $741,750 MUNICIPAL COURT - • Proposed Personnel Policy Issue Request / Justification Funding Source Salary / Benefits Non- Personnel Comments Council Action No Policy Issues Submitted FINANCE • Proposed Personnel Policy Issue Request / Justification Funding Source Salary / Benefits Non- Personnel Comments Council Action No Policy Issues Submitted • COMMUNITY AND ECONOMIC DEVELOPMENT Capitol Theatre Proposed Personnel Policy Issue Request / Justification Funding Source Salary / Benefits Non- Personnel Comments Council Action Increase in Capitol Theatre PFD Revenues & PFD Management Fee Fund Balance Revenues $49,000 From $174,000 to $232,000 Fund Bal. 9,000 Total $58,000 Budgeted • Page f 5 • • • • • • • • Convention Center • • Proposed Personnel Policy Issue Request / Justification Funding Source Salary / Benefits Non- Personnel Comments Council Action Increase in Convention Center PFD Revenues $14,650 Budgeted • Management Fee From $664,350 to $679,000 • • Increase in Convention Center Convention Center • $10,000 Budgeted Professional Services Operating Revenue • From $165,000 to $175,000 Outside Agency . • • Proposed • Personnel • Policy Issue Request / Justification Funding Source Salary / Benefits Non- Personnel Comments • Council Action Continue Support for the Committee for CBD Capital 2012 • Downtown Yakima (CDY) Improvement Budget $50,000 Budgeted (2011 budget; $50,000) Fund (321) • • • • POLICE • • • Proposed • . Personnel • Policy. Issue Request / Justification Funding Source Salary / Benefits Non- Personnel Comments Council Action 9 Replacement Police Vehicles Law & Justice • • $270,000 Capital Fund • • • • FIRE • • Proposed . Personnel Policy Issue Request / Justification Funding Source • Salary / Benefits Non- Personnel Comments Council Action • No Policy Issues Submitted • • • Page 3 of 5 • • PUBLIC WORKS • • Refuse Proposed Personnel Policy Issue Request / Justification Funding Source Salary / Benefits Non - Personnel Comments Council Action Add One Solid Waste Collector /Driver Refuse Division 2012 Budgeted funded by new customers from prior Operating Fund (1/2 Year) $29,500 annexations 2013. $59,000 Increase Department Assistant II to full -. Refuse Division $17,750 Budgeted time' Operating Fund Transit Proposed Personnel Policy Issue Request / Justification Funding Source Salary / Benefits . Non - Personnel Comments Council Action Purchase 3 used 30 ft. Buses for new Local Sales Tax $100,000 Budgeted Ellensburg- Yakima route Purchase 9 Vanpool Vans 75% Grant Funds $225,000 • 25% Local Sales Tax $75,000 Budgeted $300,000 Transit Center Canopy Local Sales Tax - $150,000 Budgeted • • • PageeeS • • • • Equipment Rental Proposed . Personnel Policy Issue Request / Justification Funding Source Salary / Benefits Non- Personnel Comments Council Action Equipment Rental Equipment Rental $1,153,500 Budgeted Additions (Streets) Replacement Fund Crack Sealer $60,000 Line Laser 8,500 Replacements Streets 2 3 /4 Ton PU /Snowplow 90,000 - Street Sweeper 185,000 38' Bucket Truck (used) 45,000. Water l Ton PU . 30,000 Refuse 2 Automated Refuse Truck 630,000 Wastewater Ford Escape Hybrid - 35,000 3 /4 Ton Chassis/Body 45,000 Cargo Van 25,000 Total • $1,153,500 Page 5 of 5 rsfrr / I) MEMORANDUM To Members of the Yakima City Council From Micah Cawley, Mayor Date December 5, 2011 Re: budget proposal If the 6% increase in the "in -lieu utility tax" is approved by the City Council, I would propose that those funds be allocated in the following manner. 1. Hire ten (10) police officers (patrol only) $1,127,662 (some costs for equipment and training will be offset by staggered hiring of the new officers) 2 Restore Legal Assistant: $80,000 3 Reserve funds for 2012/2013 budget $792,338 Total $2,000,000 I met with the City Manager and discussed my budget proposal. He reviewed and verified the numbers for me My proposal includes the necessary cuts previously outlined in order to balance the 2012 budget.