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Home My WebLink About08/06/2013 21 Budget Amendment and Misc AppropriationsBUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. p�l For Meeting of: 8/6/2013 ITEM TITLE: First reading of an Ordinance amending the 2013 budget for the City of Yakima; and making appropriations from Unappropriated Fund Balances within various Funds for expenditure during 2013 as noted in the summary attached. (no action required at this meeting; second reading scheduled August 20,2013). SUBMITTED BY: Cindy Epperson, Director of Finance& Budget SUMMARY EXPLANATION: In the past few months, Council has approved several initiatives that require additional appropriations in 2013. Additionally, there have been two long -term managers retire who were funded by budgets that didn't have room in their operating budgets for the cashout expense; roof repairs required at two fire stations; and the need to replenish the Refuse cart inventory. In most cases, there is additional revenue to cover the costs. Where there is not revenue, the fund balances are adequate. We are asking for appropriation for the following programs: General Fund Planning Professional Service $73,614 General Fund Equipment for Patrol Truck Weigh $61,000 Program General Fund Local Match for LIFT Program $500,000 Parks & Rec Fund Trek Yakima Signage $50,000 Fire Capital Fund Station 91& 95 Roof Repair $177,000. Fire Capital Fund Breathing Apparatus (funded by $500,000 State LOCAL) Law & Justice Police Take -Home Vehicle Program $4,539,900 Capital Fund (funded by State LOCAL) Refuse Fund Replenish Cart Inventory $28,000 Refuse Fund Refuse Mgr- benefit cashout at $81,000 retirement Public Works PW Admin Director - benefit cashout $60,000 Admin Fund at retirement The attached appropriation adds these items to the 2013 budget, which increases the total City expenditure budget by $6,070,514, while the revenue budget is increasing by $5,732,514, with a net use of reserves Citywide of only $338,000 across 4 funds. The attached narrative describes each program in detail and looks specifically at how each initiative is being funded. RECOMMENDATION: Read Ordinance by title only at the August 6, 2013 meeting. Pass Ordinance after second reading at the August 20, 2013 meeting. ATTACHMENTS: Supplemental Narrative for August 6, 2013 Appropriation Ordinance 000 - General Fund o Planning Professional Services No net use of reserves $73,614 As the Community Development Director is reviewing planning documents and development standards, the shoreline master plan has been started by staff, but has been lowered on the list of priorities as other planning issues have become higher priorities. There is a grant of $58,614 available to complete this plan, and that amount should be adequate to complete it. Additionally, the development standards require updating, and at its March 26, 2013 Study Session, City Council approved contracting for this work for an estimated $15,000. o Truck and Scales for new Truck Weigh patrol program $61,000 Overweight vehicles may be contributing to the deterioration of the streets, and Council approved a new patrol program to weigh trucks within the City limits. This requires a heavy -duty pickup truck to transport portable scales. o Transfer to Yakima Redevelopment Area (YRDA) Fund $500,000 At the June 11, 2013 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 SI ED funding is originally derived from the State, it really cannot be counted as match. The original 2013 budget contemplated a donation of right -of -way for the road projects to meet the match requirement. A donation is not likely in 2013, so we needed to look at other options. The County is anticipating paying about $0.5m for engineering design work on the East -West Corridor that is in the LIFT area, which would leave about $0.5m for the City to match. Sales tax revenues are coming in stronger than anticipated, and General Fund is in the position to make a one -time contribution of $500,000 for the YRDA improvements out of current revenues. General Fund Revenue • Revenue - Shoreline Master Plan Grant $58,614 • Additional Sales Tax $625,000 131 -Parks and Recreation Fund Total net use of reserves $50,000 o Trek Yakima Signage $50,000 At the May 21, 2013 meeting, City Council approved the Trek Yakima concept which is designed to get citizens outdoors to enjoy the paths and trails in the area. The first step is to develop signage, which is estimated to cost about $50,000 in 2013. The Parks and Recreation budget is rather tight, and did not have capacity to absorb this program, so an appropriation is necessary. The actual beginning 2013 fund balance was almost $100,000 greater than estimated at the time of budget adoption —the balance is sufficient to fund this activity. 332 -Fire Capital Fund - Total net use of reserves $168,000 • Roof Repair $177,000 • Breathing Apparatus (Funded by LOCAL program) $500,000 • Revenue -Lease of Race St. Station $9,000 • Revenue -State LOCAL Financing $500,000 A strategic initiative policy issue in the 2013 budget was to "sell" the Fire -owned facility currently occupied by YPACNCTV to that division for $316,250 to obtain one -time capital funds. These proceeds were not immediately budgeted in 2013, as the Fire Department needed to evaluate its most urgent needs, but this balance is available for major capital improvements. The highest priority identified by command staff is needed roof repair at Stations 91 and 95 at an estimated cost of $177,000. Also included in this appropriation is the purchase of the breathing apparatus approved by Council at their June 4 meeting to be funded by State LOCAL financing. Both the cost of the equipment and the related debt proceeds are being added. Finally, the Race Street facility is being leased out to the company that is installing the Automated Meter Reading system for the City. This new one -time revenue is available to be used for Fire's capital needs. 333 -Law and Justice Capital Fund - No net use of reserves • Police Take -Home Vehicle Program $4,539,900 • Revenue -State LOCAL Financing $4,539,900 At the June 4 meeting, City Council approved using State LOCAL financing to fund a Police Take -home Vehicle program. Both the cost of the vehicles and the related debt proceeds are being added to the budget. 471 - Refuse Fund Total net use of reserves $109,000 • Replenish Refuse Cart Inventory $28,000 • Refuse Manager cashout of accrued benefits at retirement $81,000 The Refuse division is running low on replacement carts. The carts are owned by the City and "loaned" to the customers. The annual budget includes cart replacement, but Refuse is experiencing more replacement requests than anticipated, and is requesting an additional $28,000 to replenish their cart inventory. Additionally, the long -time manager retired this spring, and the accrued benefits were cashed out in accordance with the Municipal Code. As a portion of the retirement cashout is used to increase the "base" for the monthly pension benefit for PERS 1 employees, the City is also surcharged for this excess compensation. These are both considered acceptable one -time uses of fund balance. The fund balance will be reviewed for adequacy as the 2014 budget is developed. 560 - Public Works Administration Fund - Total net use of reserves $60,000 o PW Admin Manager cashout of accrued benefits at retirement $60,000 The long -time Public Works Administration manager is retiring this summer, and the accrued benefits are being cashed out in accordance with the Municipal Code. Since this employee is PERS 2 instead of PERS 1, the cashout does not affect the pension benefit so the City will not be surcharged by the Department of Retirement Systems. This is an acceptable one -time use of fund balance, which will remain above minimum levels after this additional cost. ORDINANCE NO. 2013 - AN ORDINANCE amending the 2013 budget for the City of Yakima; and making appropriations from Unappropriated Fund Balances within various Funds for expenditure during 2013 for the purposes described in the attached Schedule. WHEREAS, the various funds indicated on the attached Schedule I contain Unappropriated Fund Balances available for appropriation and expenditures during 2013 in various amounts and for the purposes mentioned in the attached Schedule, and WHEREAS, at the time of the adoption of the 2013 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 2013, 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 12013 ATTEST: CITY CLERK First Reading: Publication Date: Effective Date: Cepperson 7/30/2013 MICAH CAWLEY, MAYOR City of Yakima 2013 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 GENERALFUND Planning 000.021.310.0000.55820.410 000.021.310.0000.55820.410 Police 000.031.113.0000.59421.642 000.031.113.0000.52120.311 Transfer 000.099.645.0000.59755.550 Total General Fund Expenditures General Fund - Revenue 000.000.699.0000.31310. G 17 000.000.310.0000.33403.1 DE Total Revenues Net Use of Fund Balance PARKS & RECREATION FUND 131.131.421. P K00.57680.315 Net Use of Fund Balance 58,614 Shoreline Master Plan 15,000 $73,614 Development Standards update 54,000 Truck and Scales for new Truck Weigh patrol program 7,000 $61,000 Operating supplies for Truck Weigh patrol program $500,000 $500,000 Transfer to Yakima Redevelopment Area Fund $634,614 $625,000 $58,614 $683,614 $0 $50,000 $50,000 YAKIMA REDEVELOPMENT AREA Yakima Redevelopment Area - Revenue 323.323.322.0000.39755. OPT $500,000 Total Revenues Net Use of Fund Balance FIRE CAPITAL FUND 332.332.122.0000.52220.480 $177,000 332.332.122.0000.59422.642 $500,000 Total Expenditures Fire Capital- Revenue 332.332.124.0000.36250. FDL $9,000 332.332.699.0000.39190. COP $500,000 Total Revenues Net Use of Fund Balance Sales Tax Shoreline Master Plan Grant Trek Yakima signage Transfer from General Fund to match LIFT expenses $500,000 $0 Not applicable -- projects are already budgeted $677,000 $509,000 $168,000 Roof Repair Breathing Apparatus Fire Department Lease -Race St. Station State LOCAL financing cj e 7/30/2013 Page 1 of 2 POLICE CAPITAL FUND 333.333.111.0000.52120.350 333.333.111.0000.59421.642 Total Expenditures Police Capital- Revenue 333.333.699.0000.39190. COP Total Revenues Net Use of Fund Balance REFUSE FUND 471.471.212. R420.53780.350 471.471.219. R410.53710.140 471.471.219. R410.53710.224 Net Use of Fund Balance PUBLIC WORKS ADMIN FUND 560.560.639.0000.51990.140 Net Use of Fund Balance City of Yakima 2013 Appropriation Schedule $2,060,900 $2,479,000 $4,539,900 $4,539,900 $4,539,900 $0 Equipment for the Police vehicles- Take -home program Police vehicles- Take -home program State LOCAL financing $28,000 Replenish Refuse Cart Inventory $51,000 Refuse Manager cashout of accrued benefits at retirement $30,000 Refuse Manager -PERS 1 excess compensation at retirement $109,000 $60,000 Public Works Director cashout of accrued benefits at retirement $60,000 cj e 7/30/2013 Page 2 of 2