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Home My WebLink About11/17/2020 05 2021 Preliminary Budget - Second Public Hearing 't..an,gtntj ka " E$A aY 14 !:.*# BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. 5. For Meeting of: November 17, 2020 ITEM TITLE: Second public hearing on the 2021 Preliminary Budget for the City of Yakima SUBMITTED BY: Bob Harrison, City Manager Steve Groom, Director of Finance and Budget SUMMARY EXPLANATION: This is the second public hearing prior to adoption of the 2021 Preliminary Budget, and provides members of the public an opportunity to provide input on the 2021 Budget. The Preliminary Budget is located here: https://www.yakimawa.gov/services/finance/budget-documents-2/ Anyone wishing to comment on a public hearing should: dial 1-253-215-8782 or toll free at 1- 888-788-0099; when prompted for the webinar ID enter 938 9617 4662#. When prompted for the participant ID enter#. When prompted for the meeting password enter 859707#. If you wish to speak to the Council during the public hearing press *9 on your phone. When it is your turn to speak you will hear an automated announcement indicating your phone has been unmuted and you can now be heard by all participating in the meeting. ITEM BUDGETED: NA STRATEGIC PRIORITY: Public Trust and Accountability APPROVED FOR SUBMITTAL BY THE CITY MANAGER RECOMMENDATION: Conduct the Public Hearing and accept public testimony. ATTACHMENTS: Description Upload Date Type c Mama 10/ / 0 0 ( r Mama 2 ky.1 f w FINANCE DATE: October 27, 2020 TO: Honorable Mayor and Members of City Council FROM: Bob Harrison, City Manager Steve Groom, Finance Director Kimberly Domino, Finance Division Manager RE: 2021 Proposed Budget Staff respectfully submits the revised 2021 Budget for adoption, following publicly-noticed Study Sessions held on October 6'h 8'h 13th and 15'h, for public hearings on November 2' and 17'h The revised Preliminary 2021 Budget incorporates all the direction given by Council during the October 2020 Budget Study Sessions, as detailed on the last page of this document. The 2021 Budget forecasts a balanced General Fund, projected to add $34,000 to reserves. Achievements. The City Council made Budget 2021 decisions, enabling Finance to finalize ordinances, reports, narratives and other documents that must all agree with each other at final adoption on December 1'. Council and staff have worked hard throughout a challenging process, during a challenging time, exploring creative options and alternatives, to maintain current service levels. As discussed in the City Council's public study sessions, the 2021 Budget achieves the following: ✓ Continued service delivery in all departments through the COVID emergency ✓ 5-year Capital Budgets were developed for all Capital Funds ✓ $34,000 to be added to the City's General Fund reserves Priorities. The budget process requires us to evaluate annually the city's priorities, between immediate services and infrastructure, across many funds, being mindful of long-term fiscal sustainability. The goals of the 2020 Budget are: ✓ Achieve a balanced budget in every fund ✓ Assure appropriately-prioritized services citywide ✓ Protect General Fund reserves ✓ Assure long-term sustainability across all funds Funding decisions. Proposed new funding sources approved for 2021 are: ✓ Modest refuse rate increases over the next 5 years Process input. Staff participates year-round providing service delivery and managing the budget through unforeseen surprises. Next year's budget is largely based on what we know about this year's difficulties. City Council exercises governance year-round and makes policy decisions. Citizens had the opportunity to provide study session input and will have additional opportunities at this hearing and the hearing on November 19'h. Property Tax and Sales Tax are the largest sources of revenue for the General Fund, the most material forecasting assumptions. When property owners thrive, property values increase; property tax is a significant funding source for city services. When businesses thrive, our sales tax increases. The City serves the people who, 3 FINANCE in turn, fund the services provided by city government. Everyone participates in making Yakima a better place. The following table summarizes the proposed budget across all funds. Some Enterprise and Construction Funds are budgeting to spend expenditures over current-year revenues for current and previous year projects, some of which comes from prior-year project approvals or savings in those funds. Estimated 2021 2022 Increase in Estimated 2021 Beg. Projected Proposed (Decrease in) 2021 Ending Fund Balance Revenues Expenditures Reserves Balance General Fund G 10,367,571 69,664,332 $ 69,630,142 $ 34,190 10..901,761 Parks and Recreation 666,337 5,795,333 5,795,001 332 567,169 Sheet(0 Traffic Operations 180,077 6,353,1225 6,352,464 601 130,738 General Gee-eminent Subtotal 11,713,93531,313,290 S1,777,607 35,633 11,749,665, Other Cievernmental Opel-sting Funds a 531,203 16,45E395 16,506,956 6,331,612 Government Capital Funds 13,00E6621 15,605,321 i 42.,7E9 (3319,465) 9,139,153 Enterprise Operating Funds 20,112,101 67,087,170 66,779,715 307,55 20,419556 Enterprise Capital Funds ,097,3ti0 1245,671 27,463,930 4,331,741 34,479,101 internal Service funds 11144972 7,235,396 3E55,095 (1,019,699) S25,273 Employee Benefit Reserve 5100,393 16E93,943 163433A61 (139,115) 4,961,273 Risk Management Reserves 2,432,234 5126,916 6 37:93 (561,5771 4670,357 Debt Service&Agency Funds 2,935,332 495,303 7,495,303 2,935,432 Total $ 94126699 9 248,960,405 n 2494325,279 $ (864,874) $ 93,2616125 2 of 3 MEMO-Council- 2021 Budget 10-27-2020 4 FINANCE As a result of Study Session Discussion, three revisions have been made to the 2021 Budget, and will be included in the budget ordinance on December 1': 1. The State Supreme Court's October 15th decision to overturn 1-976, the car-tab initiative, restored funding for streets projects that had relied on this forecasted revenue, most notably the North 1st Street revitalization. The 2021 Budget has been revised to include an estimate of $1.6 million for TBD revenue in the Streets Capital Fund. City Manager, Legal, Public Works and Finance staff will continue to review and coordinate. 2. Mill site development funding has been revised in the 2021 Budget to reflect council direction as discussed in the October 15th study session. Funds Amount Notes De an ent of Book) Grant $8,700,000 Reimbursement Grant Solid Waste Fund Cash $ 500,000 Leaves estimated fund balance of Balance $1,3 million Utility Contributions from Water, Contribution for the preparation of the Wastewater; and Stormwater $3,215,000 site area for utility installations LIFT(2021/2022 contributions) $2,000,000 Covers the share of road contributions TOTAL $14,418,000 3. The Lodging Tax Advisory Committee met on October 22nd and after review and discussion, proposed the following revised allocation of 2021 Lodging Tax Revenue, which has now been input into the budget: LTAC LTAC Adopted Budget)Recommendation Recommendation 2020= August27 October22 Revenue forecast 1;620;000:s 1,310,000 'I 1,310,470j Less,existing city obligations Convention Center debt 486,000 347,051 i 347,051 Convention Center capital exp 238,4303 72,949 65,654 Convention Center operations 489,600. 606,000 545,400 Visitor Center Operations 74-028. 52,900 i 57,375 Sports Commission Operation! 84s6E0ss 87,500 I 7$750 1,372,710:: 1,166,400 9 1,094,236 Capitol Theatre Operations 198,910::. 75,000 154.500 SunDome 48;380:. 48,600 43,740 Airport SOZO 20,030 18,000 Museum - - - 1 - Total Expenses 1,626;000b 1,310,000 1,310,470 Surplus(Deficit) - 0 3 of 3 MEMO- Council -2021 Budget 10-27-2020