05/04/2021 04B 2021 1st Quarter Financial Report 't..an,gtntj ka
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BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEM ENT
Item No. 4.B.
For Meeting of: May 4, 2021
ITEM TITLE: 2021 1st Quarter Financial Report
SUBMITTED BY: Steve Groom, Director of Finance and Budget
Kimberly Domine, Financial Services Division Manager
SUMMARY EXPLANATION:
The First Quarter Financial Report for 2021 is attached and consists of the following:
1. Summary Narrative
2. Financial Reports
• Fund Balance Summary
• R• evenue and Expenditure Comparison to Budget and Actual Year-to-Date
• G• eneral Government Revenue Historical Year-to-Date Detail
• G• eneral Government Expenditure Historical Year-to-Date Detail
• O• ther Funds - Revenue, Expenditure and Fund Balance Summary
ITEM BUDGETED: NA
STRATEGIC PRIORITY: Public Trust and Accountability
APPROVED FOR SUBMITTAL BY THE CITY MANAGER
RECOMMENDATION:
Review only. Submitted for routine transparency and accountability.
ATTACHMENTS:
Description Upload Date Type
2 21 1 Financial repo 4/2 /2021 xecuti um ma
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FINANCE DEPARTMENT
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To: Mayor and City Council
Bob Harrison
From: Steve Groom
Kimberly Domine
Kathy Miles
Date: April 6,2021
Subject: 2021 1st Quarter Financial Update
This financial update is a preliminary,unaudited,report for the 1st quarter ended March 31,2021,one
quarter,or 25%of the year,intended to inform and assist governance decisions for future planning. In
total,city revenues are at 17.0% of budget and expenditures are at 18.0% of budget. The timing of
Property Tax Revenue,coming in,and the timing of Capital Fund Expenditures,going out,are normally
the biggest reasons that revenues and expenditures are below 25% at this point in the year.
Cash position and revenue charts on the following pages provide insight into the monitoring of revenue
and the management of expenses. The Quarterly Treasury report,a separate report also available on the
City's website,provides further cash and investment analysis.
This report is a progress report until the annual independent audit is completed because complete
accrual analysis for invoices not yet received is only done at year-end,not quarterly.
COVID-19's economic effects on City revenues
The American Rescue Plan Act (ARPA) will positively impact 2021 as details become known,increasing
budgeted revenues and expenses and will affected "normal"budgetary percentages in the accompanying
reports uniquely as this year progresses. The economic effects of COVID-19, and the CARES Act,
affected 2020 uniquely,complicating comparison to prior year.
As has been monitored and reported continuously,there was a substantial economic effect on the City's
budgeted revenues:
• Sales Tax had significant downturns during two months in 2020,and has since recovered to
exceed 2021 budgeted levels,achieving 109.1% of budget through March
• Lodging Tax had a significant downturn in 2020 due to the economic effects of the COVID-19
pandemic and began 2021 with a January remittance that was 53% of January 2019 (pre-COVID).
February and March improved, 62% and 78%respectively of 2019 same-month levels.
3
• Building Permits, Fire Inspection Fees,Gambling Revenues and Utility Taxes all decreased
during 2020,are continuing below budget in 2021 and are being monitored monthly.
General Fund's Performance to Budget
General Fund Revenues in total are at 21.8%;the largest components are:
• Property Tax is at 10.0%.
• Sales Tax is at 25.7%.
• Utility and Franchise Taxes are at 24.8%.
• Gambling Tax is at 9.5%due to most 1st quarter remittances not yet received
• Building Permits is at 18.5%
• Fire Inspection Fees is at 2.3%due to low inspection volume during COVID
General Fund Expenditures in total are at 21.4%. The largest component variances are:
• Police expenditures are at 20.2%
• Fire Expenditures are at 22.3%.
• Information Technology expenditures are at 27.3%.
• Legal expenditures are at 26.6%due to retirement payout in the first quarter.
• City Council is at 36.2%due to annual Dues& Subscriptions paid in the first quarter.
4
CASH POSITION AND REVENUE UPDATE
City staff monitors revenues and managing expenses continuously.
Cash &Investments
As a current over-all indicator, the 4-year historic core city-wide cash and investments balance trend
shows March at$95.1 million. Each month is best compared to the same month in previous years to
account for seasonality and other annual events. March's cash balance is lower than prior year primarily
due to$4.4 million in Mill Site reimbursement not yet received.
CASH AND INVESTMENTS HISTORY
5125.00a0no -
5700,000,000
$75,000,000
$50,000,000
S25,000,000
$0
1co
Sales Tax
This is the largest single funding source for the city,and includes revenues across several funds. The 1st
quarter cumulative of$4.9 million exceeds budget by$399,906 or 8.1% and is greater than prior year by
$410,732. The city receives sales tax from the State on a 2-month lag from the actual point-of-sale
transactions so these figures are for actual transactions through January. The graph below shows Sales
Tax revenues for General Fund (see p. 9).
SALES TAX REVENUE
S20,000,000 -
S10,000,000 —
50
Jan Feb Mar Apr May Jim Jul Aug Sep Oct Nov Dec
Budget Cumulative S Current Year Cumulative Prior Year Cumulative
Finance Quarterly Report-Page 3
5
Property Tax
The 1st quarter cuniulative revenue tracked roughly on budget. The 2021 budget increased by$317,000
due to assessed valuations (a combination of existing capped at 1%and new goiyvth).
0
PROPERTY TAX REVENUE
S30,000,000 -
S20,000,0110
$10,000,000
Jan FLb NI at Apt NI Jun JulAug Sep (./c1 Nov Dec
Budget Cumulative Cunent Yea"Cumulative Prior Year Cumulative
Water
The ist quarter cumulative revenue of$2.0 million throu0gh March is down$122,440.
AVATER REVENUE
S15,000,000 -
1 0,000,000
$5,000,000
U
5 1 1 5 5
Jan FLb NI at Apt NI Jun JulAug ClS Nov Dec
Budget Cumulative Cunent Yea"Cumulative Prior Year Cumulative
inance Qnzoterly Report
6
Refuse
The 1st quarter cumulative revenue of$1.6 million is up$796 over budget and $4,569 over prior year.
REFUSE REVENUE
$7,500,000 —
$5,000,000
$2,500,000
SO 5 Jan FebJun Jul Aug SeP
Mary Apr MaOct Nov Dec
VV Budget CAMILLiat1V0 III O Year Cumulative Prim Year Cumulalive
Lodging Tax
The 1st quarter cumulative revenue of 595,731 is up$2,299 over budget and down 5116,743 compared to
prior year. The comparison of each month's revenue to the same month in prior year is improving,down
47°/0 38°/0 and 22%respectively for January,February and March. In the coming months through 2022
revehue is expected to fall short of prior year due to the continuing economic effects of the COVID-19
pandemic.
LODGING TAX REVENITE
$1,500,000 —.
$1,000,000
$5o0,000
SO t 5
Jan Feb Mar Apr May Jun Jul Au.
Sp Oct Nov Dec
Budget CAMILLiat1V0 LUSO 11.Year Cumulative Prim Veal Cumulaliw
Finance Quarterly Report-Page 5
7
Real Estate Excise Tax(REET I & combined)
The 1st quarter cumulative revenue of$592,834 is up 947,898 over budget and up.51111 938 over prior
year.
REET 1 I REET2
S3,000,000 -
s2,n00,000
$1,000,000
sI' I I
5
J art -ci Ii Apt NI ay Jun Jul Aug Sep Ckt. Nov Dec
Budget Cumulative Current Yew.Cumulative Prior Year Cumulative
Building Permits
The ist quarter cumulative revenues of 5159,432 are down S116,017 below budget and $33,076 below
prior year.
B U1LDING PERAIIT RES/EBEL'
s i,o00,000
SS00,000
$() J at Febt Apr l un Jul Augu t o Dec
BudgetCIMI11181PA: C IIITOSIt Year C111111112LINt. I'll or Year C111111115)ill
inance Quaoterly Report-Page 6
8
CTTY-WIDE FUND BALANCE SUMMARY
CHANGE IN FUND BALANCE
2021 As of March 31st
Beginning 2(121. 2021 Ending
Balance Actual Rev. Actual Exp. Balance
General Fund S 13,295,598 $ 15;154;293 S 15,123,315 $ 13326,576
Parks and Recreation 1,060,444 687;940 869,018 879,336
Street&Traffic Cnperatiens 915,423 756,443 1,1193,71.4 778,1.57
General Government Subtotal 15,271,465 16,5987676 17,386,077 14,484,064
Other Governmental Operating Funds 55,120,2,19 2,263 419 3,251,213 1,429,155
Government Capital Funds 19,731,255 1,352,972 6,652,519 14,431,678
Enterprise Operating Funds 25,831,262 1278,309 11,8,13,312 26,718,729
Er dory rise Capital Funds 41,263,704 2,621703B 1,72(1,799 42,163,943
Intern I Service Funds 4,777,916 1,627,769 2,020,450 4,385,735
Employee Benefit Reserve 5,6(19,521 3,716,938 4,0 :3,151 57Z33,30B
Risk Management Reserves 3,376,377 1,339,209 2,448,686 2;266,900
Debt Service&Agency Funds 1,251,563 1,382,778 252,114 5,381,927
Total S 125,539,312 $ 43,661,138 S 49,672,211 $ 119,528,239
This is a progress report to provide transparency and accountability. This table shows fund balances by
fund at this point in time, and some negative balances are typical for the first three quarters due to timing
of seasonal fluctuations such as Property Tax revenues that come in twice a year,and debt payments
made periodically,as well as other seasonal factors. This is intended to provide transparency and
accountability but is a snapshot, not a reliable measure of predicted year-end. Annual audited financial
reports are provided annually and can be compared year to year.
Finance QuarterlyReport-rage 7
9
CITY WIDE REVENUES & EXPENDITURES BY FUND GROUPING
REVENUE COMPARISON
(Budget vs. Actual)
2020 202:1.
Annual
Actual % Amended Actual %
as of 3/31 Reed Budget as of 3/31 Reed
General $ 15,273,262 20.3 1, $ 69,670,332 $ 15,151,293 21.8 %
Parks and Recreation 764,62B 13.8 % 5,795,833 687,940 11.9 %
Street &TrafficOperations 673,779 7.8 % 6,353,125 756/443 11.9
General Government Subtotal 16,711,669 18.7 % B1,819,290 16,598,676 20.3 %
Other Government Operating Funds 2,710,110 15.0 (1,0 17,076,388 2,263/119 13.3 %
Government Capital Funds 2,072,557 5.1 % 23,012,795 1,352,972 5.9
Interprise Operating Funds 13,138,073 19.7 % 67,1.09,670 11/755,309 19.0
Enterprise Capital Fill ds 1,509,020 11.6 % 31,845,671 2,621,0:38 8.2 %
Internal Senile I u rids 1,57)7671. 18.6 % 7,135,396 1,6'17,769 22.5 %
Employee Benefit Reserves 3,605,217 21.9 1, 16,293,913 3,716,938 22.8 %
Risk Management Reserve 1,268,594 25.2% 5,126,916 1,339,209 26.1 %
Debt Service&Agency Funds 1,232,195 7.6 % 7,195,303 1,382,778 18.1 %
Total $ 43,820,436 16.1 % $ 2 r7,0157:372 $ 43,661,1.38 17.0 %
EXPENDITURE COMPARISON
(Budget vs. Actual)
2(1211 2021.
Annual
Actual % Amended Actual
as of 3/31 Exp'd Budget as of 3/31 Exp'd
General $ 14,957,227 20.0 % $ 70,522,757 $ 15,123,315 21.4 %
('arks and Recreation /70,987 17.3 % 5,816,608 869,018 149 %
Street&Traffic (.lperatiorio 649,216 7.5 % 6,352,464 1,393,714 21.9 %
General Government Subtotal 16,5777,430 18.6 % 82,691,829 17,386,077 21.0 %
Other Government Operating Funds 2,781,313 15.1 % 20,050,241 3,254,213 16.2%
Government Capital Funds 296,403 .8 % 30,898,341 6,655'1,549 21.5
Enterprise Operating Funds 12,227,07B 17.2 % 66,900,225 11,843,842 17.7 %
Interprise Capital kinds 1,335,01.) 5.3 % 36,428,968 1.,710,799 4.7
Internal Service Funds 2,395,913 22.2% 9,359,017 2,020,150 21.6 %
Employee Benefit Reserves 4,076,214 25.1 % 16,433,061 4,093,151 249 %
Risk Management Reserve 2,075,807 11.1 % 5,688,793 2/118,686 13.0 °%
Debt Service&Agency Funds 271.,170 1.7 % 7,554,3(12 252,414 3.3 %
'total S 42,036,370 14.6 % S 276,004,780 $ 49,67121:I. 18.)
Finance Quarterly Rep ort-page S
10
GENERAL GOVERNMENT REVENUE DETAIL
GENERAL GOVERNMENT REVENUES
2021
Revenues as of March 31. Amended Percent
Genera I Fund 2019 2021) 21)21 Budget Reed
Property Tax S 958,095 $ 868,036 S 910,407 $ 9,129,830 10.0
General Sales Tax 1,305,714 1;510,129 1,967,269 19,357,000 25.7
Criminal Justice Sales Tax 864,547 886,372 1,017,169 4,053,000 25.1 ^/
Utility& I ranchise. Taxes 4,561.,033 4,859,046 4,940,000 19,914,735 24.8 %
Other Taxes 260,909 256,920 2,174 1,073,000 0.29b
i enses and Permits 774,842 693,790 41.1,690 1,888,700 21.8
lntergov't Revenues 843,t45 954,7Tr1 692,708 3,973,216 17.4 1
Charges for Services 1,812,328 1,812,731 1,738,884 7,138,251 24.4 %
Fines and Forfeitures 129,505 351,851 203,033 1,862,800 10.9
Other Revenue 70,615 19,600 270,958 1,279,800 21.29b
total General Fund 14,ki81,5U8 15,273,262 1.5,154,792 61,670,332 21.8 %
Parks Sz Recreation
Property Tax 195,506 213,089 250,624 2752,528 9.1 58
lntergov't Revenues 11,539 28,819 5,958 69,330 8.6
charges for Services 148,935 141,029 S1,399 955,250 8.5 %
Other Revenue 310,725 381,691 349,959 2,018,725 17.358
Iota I Parks&Recreation 666,705 764,628 687940 5,795,833 1.:1.9 %
Streets
Property Tax 238,371 302,826 399,911 4,392,125 9.1 1
Inter ov t Revenues 362,215 359,160 316,583 1,408,000 22.5 %
Charges for Services 7,766 S50 2,970 505,000 0.6 %
Other Revenue 49,484 10,942 36,977 48,000 77.0
Total Streets 657,839 673,778 756,444 6,353,125 11.9
Total General Government S 16,206,107 $ 16,711,668 S 16,598,676 $ 81,819,290 20.3 %
Finance Quarterly Rep ort-rage 9
ii
GENERAL GOVERNMENT EXPENDITURE DETAIL
GENERAL GOVERNMENT EXPENDITURES
2021
Expenditures as of Ma rrh 31 Amended Percent
2019 2020 2021 Budget Exp'd
Police $ 6,633,407 $ 6,537754 5 5.,999,658 $ 29,773,549 20.2
Fire 3,572,082 3,452;770 3,489,470 15,658,328 22.3 %
Information Technology 915,238 1,021,395 1,192,440 4,371,084 27.3
Finance 391,959 420,750 571,541 2,670,999 21.4%
Interfund Distributions 713,867 420,411 391,415 2,212,053 17.7%
Legal 428,992 469,347 547,918 2,057,127 26.6 %
Code Administration 414,471 420;739 412,554 1,911,326 21.6 %
Municipal Court 370,439 365,299 378,547 1,763;503 21.5
City Management 119,093 84,045 148,733 1,227550 12.1 %
Firemen's Relief/Pension 406,789 367,288 334,054 1,176,390 28.4%
Indigent Defense 172,351 268,579 274,138 1,050,000 26.1. %
Engineering 188,854 1.58,553 207,926 955,317 21..8 %
Police Pension 241,656 241,519 226,629 872;197 26.0 %
Human Resources 189,483 183,433 172,152 818,769 21.0 %
Planning 157,953 187154 181,889 796,695 22.8
CityClerk/Records 101,707 (111,312) 113,371 791,632 14.3 %
City Hall Facility 129,567 1.34,144 92,278 455,460 20.3 %
Purchasing 149,158 113,426 102,990 447,309 23.0 %
Clean City Program1 170 44,912 441,008 10.2%
Economic Development 86,054 53,006 60,810 342;145 17.8 %
City Council 10 ,870 105,105 103,137 284,786 36.2%
Parking 42,775 38,290 35,1.57 258,994 13.6 %
Intergovernmental 47,088 25,361. 41,597 170,288 24.4 %
Contingency - - - -- n/a
Total General Fund 15,578,853 14;957,226 15,123,316 70,506,509 21.4%
Parks&Recreation Fund 884,459 970,987 869,048 5,816,608 14.9 %
Street&Traffic Ops. 1,610,845 649,216 1,393,714 6,352,464 21.9 %
Total General Government $ 18,074,157 $ 16,577,429 $ 17,386,078 $ 82,675,581 21.0 %
t Expenditures commented following the Nov 2019 Clean Cities funding increase in solid waste utility tax
Finance Quarterly Report-Page 10
12
OTHER FUNDS DETAIL
OTHER GOVERNMENT OPERATING FUNDS
2021 As of March 31
Beginning 2021 2021 Ending
Fund Balance Actual Rev. Actual Exp. Balance
Economic Development $ 53,014 $ $ $ 53,014
Neighborhood Development 453,104 50,000 450,706 52,398
Community Relations 881,473 163,257 154,998 889,732
Cemetery 133,228 39,341. 79,520 93,049
Emergency Services 99,131 160,192 317,710 (58,387)
Public Safety Communication 910,846 905,574 1,074,251 742,169
Police Grants 1,036,623 50,918 70,046 1,017,495
PBIA(Park/Bus Improvement Area) 75,810 52,888 563 128,135
Trolley 48,500 1,275 1,883 47.892
Front Street Bus Improvement Area 4,278 950 - 5,228
Convention Center(Tourist Promo) 184,296 200,544 460,813 (75,973)
Capitol Theatre 53,872 92,280 103,643 42,509
PFD-Convention Center 1,228,948 259,471 290,078 1,198;341
Tourism Promotion Area 53,971 90,194 92,054 52.111
PFD-Capitol Theatre 203,157 196,566 157,977 241,746
Total Other Gov't Operating Funds $ 5,420,251 $ 2,263,450 $ 3,254,242 $ 4,429,459
GOVERNMENTAL CAPITAL FUNDS
2021 As of March 31
Beginning 2021 2021 Ending
Fund Balance Actual Rev. Actual Exp. Balance
Arterial Street $ 2,049,246 $ 120,710 $ 278,343 $ 1,891,613
Central Bus 1)istrict Capital 72,576 2,521. 5,805 69,292
Capitol Theatre Construction 259,770 15,000 3,332 271,438
Yakima Redevelopment Area 736,562 4,479,487 (3,747 925)
Parks&Recreation Capital 391,355 2,823 14,408 379;770
Fire Capital 381,861 17,500 3,777 395,584
Law and Justice Capital 1,02,340 124,555 80,760 1,069,135
Public Works Trust Construction 3,544 984 302,315 16,693 3,830,606
RE.E.1 2 Capital 2,004,985 296,417 72,732 2,228,670
Street Capital 3,833,625 411,456 138,082 4,106,999
Convention Center Cap Improvement 5,043,523 59,675 1,559,131 3,544;067
Reserve for Capital Improvement 387,427 387,427
Total Gov't Capital Funds $ 19,731,254 $ 1,352,972 $ 6,652,550 $ 14,431.676
2 YRDA capital fund shows a negative ending fund balance due to the tuning of :reimbursement grant billing not yet received of
approximately$4.4 million.
Finance Qnarterly Report-Page 11
13
ENTERPRISE OPERATING FUNDS
2021 As of March 31
Beginning 2021 2021 Ending
Fund Balance Actual Rev. Actual Exp. Balance
Airport Operating S 601,551 $ 333,632 $ 3T1,579 $ 596,604
Stomiwater Operating 1,179,947 537,147 835,071. 981,013
Transit Operating ',v 6,254 1.,S31.,75 i 193%945 7,468,064
Refuse 3,055,230 1.,809,565 1,650,773 3,214,572
Wastewater Operating 8,131,271 55,631,611 1,651,546 9,T11.372
Water Operating 3,953,702 2,087,338 1,775,028 4,266,012
Irrigation 930,305 524,229 617,400 807,131
Total Enterprise Operating Funds $ 25,834,263 $ 12,758,310 $ 11,843,842 $ 26,748,731
ENTERPRISE CAPITAL FUNDS
2021. As of March 31.
Beginning 2021 2021 Ending
Fund Balance Actual Rev. Actual Exp. Balance
Airport Capital S 789,623 $ 723,579 $ 817,676 $ 695,526
Storuuvater Capital 5,129,72(1 304,500 48,308 5,385,912
Transit Capital 6,101,037 9,800 1.4,886 6,096,951.
Wastewater a ilities Capital 4,809,220 239,917 56,975 4,992,1.6.2
Wastewater Construction Capital 8,144,051 375,000 386,632 8,132,419
Wastewater Capital 5,281,555 190,800 5,093,755
Water Capital 5,053,912 600,000 38,906 5,615,036
Irrigation Capital 5,95(1,556 11682411 166,617 6,152,182
Total Enterprise Ca pital Funds $ 41,263,704 $ 2,621,039 $ 1,720,800 $ 42,1.63,943
INTERNAL SERVICE FUNDS
2021 As of March 31
Beginning 2021 2021 Ending
fund Balance Actual Rev. Actual Exp. Balance
Lrpnpment Rental S 3,510,021 $ 1,003,657 $ 1,182,461. $ 3,341,117
Lrrvlrllnmei dal 551,877 (412) 5,288 546,177
Public Works Administration 721,025 341,103 333,173 728,955
Utility Services' (15,006) 283/122 199,527 (231,111)
Total Enterprise Operating Funds S 4;777,917 $ 1,627,770 $ 2,020,449 $ 1,385,238
Utility Services ade rnrL service fro id is i re;-atn,•due to timing; internal service funds cover costs over long term.
Finance Quarterly Report-rage 12
14
EMPLOYEE BENEFIT RESERVES
21121. As of Manh 31.
Beginning 2021 2021 Ending
Fund Balance Actual Rev. Actual Exp. Balance
UuciI iploymet it Comp Reserve $ 296,730 $ 54,090 $ 20,635 $ 330,1B5
Employees Health Ben Reserve 4,362,388 3,235,437 3,537,151 4,060,674
Workers Comp Reserve 841,693 427,411 530,077 739,027
Wellness/EAP 108,710 5,288 103,422
Total Employee Benefit Reserve $ 5,609,521 $ 3,716,938 $ 4,093,151 $ 5,233;308
RISK MANAGEMENT RESERVE
2021. As of March 31.
Beginning 2021 2021 Ending
Fund Balance Actual Rev. Actual Exp. Balance
Risk Management Reserve $ 3;376,377 $ 1,339,209 $ 2,448,686 $ 2,266;900
DEBT SERVICE & AGENCY FUNDS
2021 As of Ma n.h.31
Beginning 2021 2021 Ending
Fund Balance Actual Rev. Actual Exp. Balance
GO Bond Redem ption
2002 CC Convent ion Center 217,154 290,531. 507,685
2005 CC Various Bonds 17,239 213261 230503
1996 GO LTD-Convention Center 44,684 44,634
LID Debt Sennce Control 285 235
'Dotal GO Bond Redemption $ 279,077 $ 504,080 $ - $ 783,157
Water/Sewer Revenue Bond Redemption.
WW Rev Bond&2008 Debt Service $ 343,871 $ $ (5,988) $ 349,859
Irrigation Bond Debt Service 170,953 136,275 (7,713) 323,941
WW Rev Bernd Rsv IQ 2017 I Svc 2,634,044 (21,533) 2,6R5,877
Total tA76 Rev Bond Redemption $ 3,I57,SnK $ 1.36275 $ (35,234) $ 3,329,377
Agency Funds
YakCorps 99,950 739,425 287647 551,728
Cell eheroTrust 717,66B "2,997 - 720,665
Total Agency Funds $ 817,61B $ 742,422 $ 287,647 1,272,393
Finance Quarterly Report-rage 13