HomeMy WebLinkAbout03/23/2021 04 Fiscal Sustainability, Financing Public Safety VehiclesB US INE S S O F T HE C I T Y C O UNC IL
YAK I M A, WAS HI NG T O N
AG E ND A S TAT E M E NT
I tem No. 4.
F or Meeting of: March 23, 2021
I T E M T IT L E :Fiscal S ustainability and Financing of P ublic S af ety Vehicles
S UB M IT T E D B Y:Bob Harrison, City Manager
Steve Groom, Finance Director
A aron Markham, F ire C hief
Matt Murray, P olice C hief
S UM M ARY E X P L ANAT IO N:
This is an update to the f inancial sustainability and planning to provide f or the scheduled
replacement of public saf ety vehicles. T hese vehicles are in the Capital B udget, f unded by
General F und revenues, so this discussion will include overall fiscal planning of the General F und
with a long-term f ocus.
A ll C ity department D irectors, led by the C ity Manager, are re-evaluating city-wide expenditures
and coordinating ef f orts focusing on identif ying savings and redeploying them strategically.
Vehicle financing is a large piece of this but not the only component. P ublic S af ety command
staff is similarly re-evaluating replacement and maintenance planning.
I T E M B UD G E T E D:NA
S T RAT E G I C P RIO RIT Y:Public Trust and A ccountability
AP P RO V E D F O R S UB M I T TAL B Y T HE C IT Y M ANAG E R
RE C O M M E ND AT IO N:
AT TAC HM E NT S:
D escr iption Upload D ate Type
Sustainability and Vehicles presentation 3/19/2021 Presentation
1
Fiscal Sustainability
2
2021 Action Plan
City Manager objectives:
•Improve service efficiency and productivity
•Align resources with strategic objectives
•Recognize and plan for both short-term and long-term
obligations
•Invest in employee development and maintain
competitiveness
•Enhance the effectiveness of services and improve
reporting of strategic priorities related to desired
outcomes
3
2021 Action Plan
Immediate steps
•Current staff vacancies frozen, require City Manager approval
•Contracts and leases under review for City-favorable terms
•Current expenditures under Department Head savings review
•Coordinate efforts with Finance, IT, HR, and Legal to assist in
senior staff review efforts and obligations that may exist
contractually or otherwise
•Technology opportunities (improve customer experience and
efficiency effectiveness)
•Long-term focus on needs; collecting, capturing and planning
4
2021 Action Plan
1. Senior Staff identifying cost savings
•Current year 2021
•New run rate by 2022
2. 2022 Budget process targeting identified needs
•Vehicle /equipment funding
•Mill site
•CBA agreements
•Insurance cost
5
Exploring Possible
Shared Dispatch
6
MRSC’s
Guidance
On E-911
Sales Tax
A County revenue that
can be shared with an
Interlocal Agreement
7
Potential Shared Savings
Potential
.1% or .2%
new revenue
to County
Potential City
Savings
$1.7M
8
Exploring
Regional Fire Authority
9
MRSC’s Guidance
On RFA and Property Tax
City Property Tax Cap of $3.10 could go to $2.10
Staff is exploring RFA factors
Reduction to Property Tax revenue would have to
more than offset expense reduction
10
Vehicle Replacement
11
Perpetual Vehicle Replacement
Strategy Options
Fire:
Repair and maintenance has
extended useful lives,
changed order of replacement
Annual funding $1,000,000
Police:
Re-evaluating fleet size and
policy
Annual funding $1,000,000.
12
Perpetual Vehicle Replacement
Financing Options
Cash management:
1) Fund Capital Replacement Funds for 2022
with 2021 savings as we capture
2) Improve capital replacement fund balances
beginning now
13
Perpetual Vehicle Replacement
Financing Options
Debt:
Trying to avoid debt
Not a long-term solution
Interest rates are low, most recently:
•0.68% most recent 10-year financing
14
Perpetual Vehicle Replacement
Financing
Savings being managed to proceed
Next steps:
Capturing savings through re-budgeting
Evaluating maintenance vs purchase
15
Revenue Options
16
Revenue
•County Shared Dispatch .1% Sales tax
Pending County exploratory discussion
•RFA Property Tax sharing
Pending needed input, feasibility study
•Levy Lid Lift
A council discussion every year, Sept. valuations
Last vote failed, 2020
17
Levy Lift Capacity
$4.2 million
Most recent assessed valuation $7,942,000,000
Rate Cap $3.10
Maximum Levy $24,600,000
Current Rate $2.56
2021 actual levy $20,400,000
Potential levy capacity $4,200,000
18
American Rescue Plan Act
•Knowns
•City of Yakima’s allocation $25.5 M, signed March 11th
•Payments expected 50% in 2021, 50% in 2022
•Unknowns
•Eligibility guidelines from Treasury pending
•Language
•Respond, mitigate and cover costs of public health emergency and
economic impacts
•Premium pay for essential work by eligible workers
•Provision of government services to replace lost revenues
•Necessary investments in water, sewer, or broadband infrastructure
•Recovery efforts to be completed by 2024
19
Voted Options
20
Elections Calendar
Overall County
Yakima County 0.3% Criminal Justice Sales Tax Nov 8, 2021
21