10/16/2012 17 Budget Amendment for Miscellaneous Expenses BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No.
For Meeting of: October 16, 2012
ITEM TITLE: First reading of an Ordinance amending the 2012 budget
for the City of Yakima; and making appropriations from
Unappropriated Fund Balances within various Funds for
expenditure during 2011 as noted in the summary attached
(no action required at this meeting; second reading
scheduled November 6, 2012).
SUBMITTED BY: Cindy Epperson, Director of Finance & Budget
CONTACT Cindy Epperson, 576 -6771
PERSON /TELEPHONE:
SUMMARY EXPLANATION:
During the development of the 2013 preliminary budget and the review of 2012 budget
trends and estimates, several instances of additional unbudgeted expenditures that
exceeded the total fund budget authority were noted. Some of these increases come with
additional revenues to support them and others would need to be paid from the affected
fund balance.
The following page provides a summary of the appropriation and is summarized by fund; the
bulleted line item identifies the net impact on the fund balance, if any. The sub - bullets
identify (a) the increased costs, followed by (b) additional revenues, when applicable. Where
revenues are not identified, the fund reserves (or fund balances) are adequate to cover the
additional costs. (See attachment for official proposed appropriation.) (Continued on next
page.)
Resolution Ordinance X Other Schedule I
(specify)
Contract: Mail to:
Contract Term: Amount: Expiration Date:
Insurance Required? No
Funding Fees and Fund Balances in Various Phone:
Source: Funds
APPROVED FOR City Manager
SUBMITTAL:
ez:IledeL
STAFF RECOMMENDATION:
Read Ordinance by title only at the October 16, 2012 meeting. Pass Ordinance after second
reading at the November 6, 2012 meeting.
BOARD /COMMISSION RECOMMENDATION:
ATTACHMENTS:
Click to download
❑ Appropriation Ordinance
❑ Appropriation Summary
❑ 2012 Appropriation Schedie 1
ORDINANCE NO. 2012 -
AN ORDINANCE amending the 2012 budget for the City of Yakima; and
making appropriations from Unappropriated Fund Balances
within various Funds for expenditure during 2011 to provide
for improvements in the Yakima Redevelopment Area; snow
and ice control costs; remittance of the Tourism Promotion
Area assessments; a soil quality change order for Upper
Kiwanis Park project; and repair and maintenance of buses
used on the new Ellensburg route.
WHEREAS, the various funds indicated on the attached Schedule I contain
Unappropriated Fund Balances available for appropriation and expenditures during 2012
in various amounts to provide for improvements in the Yakima Redevelopment Area;
• snow and ice control costs; remittance of the Tourism Promotion Area assessments; a
soil quality change order for Upper Kiwanis Park project; and repair and maintenance of
buses used on the new Ellensburg route, all as listed in the attached Schedule, and
WHEREAS, at the time of the adoption of the 2012 budget it could not
reasonably have been foreseen that the appropriation provided for by this ordinance
would be required; and the City Council declares that an emergency exists of the type
contemplated by RCW 35.33.091 and that it is in the best interests of the City to make
the appropriation herein provided, now, therefore,
BE IT ORDAINED BY THE CITY OF YAKIMA:
Section 1. Appropriations are hereby made, for expenditure during 2012, from
Unappropriated Fund Balances in the various Funds to the various accounts and in the
various amounts, and for the various specific purposes, all as specified in the Schedule
attached hereto and incorporated herein.
Section 2. This ordinance is one making an appropriation and shall take effect
immediately upon its passage, approval and publication as provided by law and by the
City Charter.
PASSED BY THE CITY COUNCIL, signed and approved this day of
, 2012
MICAH CAWLEY, MAYOR
ATTEST:
CITY CLERK
First Reading:
Publication Date:
Effective Date:
Cepperson 10/9/2012
• 000 - General Fund No net use of reserves
o Transfer to Yakima Redevelopment Area (YRDA) Fund $900,000
At the September 25, 2012 Study Session, part of the discussion was the City's need to match
the State's annual $1 million commitment of sales tax as authorized by the Local Infrastructure
Financing Tool (LIFT) legislation in order to make necessary improvements in the Yakima
Redevelopment_ Area. Match is basically any local revenue except for revenue derived from the
State. Originally, County SIED loans and grants were considered to be match, but since the
SIED funding is originally derived from the State, it really cannot be counted as match, which left
the City short of matching the $1 million for 2012. As the 2012 budget estimates were
developed, revenues are coming in stronger than anticipated, and General Fund is in the
position to make a one -time contribution of $900,000 for the YRDA improvements out of current
revenues. In a separate item on the October 16 meeting agenda, the City is proposing to enter
into an interlocal agreement with Yakima County which sets forth the allocation of expense on
the major roadwork in LIFT area. Reimbursement to the County from this General Fund transfer
is considered to be a valid match.
• 141 - Street & Traffic Eng. Fund Total net use of reserves $230,000
o - Snow and Ice Control $230,000
In January of 2012, the City experienced a major snow storm with snow accumulations large
enough to require an expanded plowing effort. (This was the first year in over 15 years that
needed this higher level of response). Originally, the additional cost was estimated to be about
$400,000, but we delayed an appropriation until later in the year when we could determine the
net appropriation required at the total fund level. An appropriation of $230,000 is required to
adequately budget for the 2012 street operation. Note: The Street Fund carries a higher fund
balance as a percentage of the expenditure budget than most other operating funds because
major snow storms are likely but unpredictable, both in frequency and cost to respond.
• 173 - Tourism Promotion Area Fund - No net use of reserves
o Transfer Assessment to YVVCB $50,000
o Revenue - Tourism Promotion Area Assessment $50,000
In the fall of 2011, the hoteliers in the Yakima Tourism Promotion Area agreed to raise the room
night assessment, and an estimate of the increased revenue was budgeted. This year the
revenue is exceeding the original estimate. The Yakima Valley Visitors and Convention Bureau
(YVVCB) is contracted by the City to manage this program under the guidance of the TPA
Commission. The contract stipulates that all funds collected are turned over to YVVCB monthly,
so that if we collect more than budgeted, we are required to remit the balance. TPA proceeds
can only be used for tourism promotion activities as approved by the TPA Commission.
• 331 -Parks & Rec. Capital Fund Total net use of reserves $40,000
o Upper Kiwanis Park project -soil quality change order $40,000
The Kiwanis Park Women's Fastpitch and Little League Ball Field project required a change
order to accommodate soil quality and profile conditions discovered after the bid was awarded.
The extra cost for purchase, delivery and placement of the proper drainage soil type cost the
bulk of the final change order. This project requires an additional $40,000 appropriation to
complete. The estimated reserve balance at the end of 2012 after Kiwanis Park project
completion is about $75,000.
• 462 - Transit Operating Fund - No net use of reserves
o Repair and Maintenance - Ellensburg Route $80,000
The new Ellensburg transit route operated in partnership with Hope Source has been very well -
received. In response, some of the peak times are using large buses, and there have been
some supplemental routes established. The additional usage coupled with the age and
condition of the buses obtained for this pilot program has caused greater vehicle maintenance
costs. Like General Fund noted above, Transit revenue estimates are exceeding the budget, so
that this additional expense will not create a use of reserves for the fund.
City of Yakima
2012 Appropriation Schedule
SCHEDULE I
Appropriate out of unappropriated fund balances of the various funds and in the various
amounts and for the purposes as described:
ACCOUNT AMOUNT FUND TOT. DESCRIPTION
GENERAL FUND
000.099.645.0000.59755.550 $900,000 $900,000 Transfer to Yakima Redevelopment Area Fund
Net Use of Fund Balance $900,000
YAKIMA REDEVELOPMENT AREA
323.323.322.2337 59510.410 $900,000 Street Infrastructure Design- Millsite Parkway
Total Expenditures $900,000
Yakima Redevelopment Area - Revenue
323.323.322.0000.39755.OPT $900,000 Transfer from General Fund to match LIFT expenses
Total Revenues $900,000
Net Use of Fund Balance $0
STREET & TRAFFIC ENG FUND
141 141.524 0000.54266.120 $25,000 Snow & Ice Control- Overtime
141.141.524 0000.54266.312 $90,000 Snow & Ice Control -De -icing Supplies
141.141.524 0000.54266.410 $115,000 $230,000 Snow & Ice Control- Professional Services
Net Use of Fund Balance $230,000
TOURISM PROMOTION AREA FUND
173.173.324 0000.57110.410 $50,000 Remit Assessment to YVVCC
Total Expenditures $50,000
Toursim Promotion area - Revenue
173.173.324 0000.31810.OPA $50,000 Tourism Promotion Area Assessment
Total Revenues $50,000
Net Use of Fund Balance $0
PARKS & REC CAPITAL FUND
331.331.428.2212.59476 650 $40,000 $40,000 Upper Kiwanis Park improvements -Soil mix
Net Use of Fund Balance $40,000
TRANSIT FUND
462.462.513.T642.54750.480 $80,000 $80,000 Repair & Maintenance - Ellensburg Route
Net Use of Fund Balance $80,000
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