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08. Ordinance to create a fund to account for the Clean City Fund (first reading) 1 14-4111\l'A 1—coi• oriV4 rr 11 !Id "i enc u nrry 1 BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. 8. For Meeting of:August 17, 2021 ITEM TITLE: Ordinance to create a fund to account for the Clean City Fund (first reading) SUBMITTED BY: Jennifer Ferrer Santa Ines, Director of Finance and Budget SUMMARY EXPLANATION: The attached Ordinance authorizes the establishment of a Special Revenue Fund 136 "Clean City Fund" to account for the utility tax increase imposed on the City's waste systems' commercial refuse collection to be used to meet Clean City program objectives. Use of a Special Revenue fund to account for revenues and expenditures in this program will ensure that all resources will be used only for the Clean City program objectives. ITEM BUDGETED: Yes STRATEGIC PRIORITY: Public Trust and Accountability APPROVED FOR SUBMITTAL BY THE CITY MANAGER RECOMMENDATION: First reading of Ordinance. ATTACHMENTS: Description Upload Date Type 0 Ordinance 8/10/2021 Ordinance CI Memo 8/10/2021 Corer Memo 2 ORDINANCE NO. 2021- AN ORDINANCE authorizing the establishment of a Special Revenue Fund 136 "Clean City Fund" to account for the utility tax increase imposed on the City's waste systems' commercial refuse collection. WHEREAS, the City of Yakima developed the Clean City program to address the chronic blight plaguing the community; and WHEREAS, the City supports the program objectives that include but not limited to address visual blight, provide coordination with neighborhoods for annual clean-up events, and engage with community partners and volunteers; and WHEREAS the City desires to establish a new special revenue fund entitled"Clean City Fund" for the purpose of segregating revenues received from utility tax increase on waste systems' commercial refuse collection and the expenditures incurred to meet program objectives of the Clean City; and WHEREAS City Staff has determined that creating a Special Revenue Fund 136 is in the best interest of the City of Yakima; now, therefore, BE IT ORDAINED BY THE CITY OF YAKIMA: Section 1. The City Council does hereby incorporate the above "whereas"recitals as findings in support of this ordinance to establish a separate Special Revenue Fund to account for the Clean City program. Section 2. There is hereby added a new City of Yakima Municipal Code Chapter 3.125, which establishes the Clean City Fund for the purpose of segregating revenues received through and expenditures eligible under the Clean City Program of the City of Yakima. 3.125 Clean City Fund. A. There is created the Clean City Fund. B. The Clean City Fund shall consist of monies collected in utility tax imposed on waste systems' commercial refuse collection to meet program objectives of the Clean City Program. 3 This ordinance is creating a new Fund 136 and adopting City of Yakima Municipal Code Chapter 3.125, which establishes the Clean City Fund 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 2nd day of September, 2021. Patricia Byers, Mayor ATTEST: Sonya Claar Tee, City Clerk First Reading: August 17, 2021 Publication Date: Effective Date: 4 4*•_: :-,) FINANCE TO: Mayor and City Council FROM: Jennifer Ferrer-Santa Ines, Director of Finance and Budget DATE: August 10, 2021 RE: Ordinance creating a Special Revenue Fund 136, Clean City Fund The City of Yakima developed "Clean City" as a program to address the blight plaguing the community. This program is funded by an increase in Utility Tax imposed on Yakima Waste Systems' commercial refuse collection and provides for salaries and benefits for 2.5 full-time equivalent (FTEs) Code Compliance Officers and program expenditures. The Clean City program is currently accounted for in the General Fund. Revenue collection from the increase in Utility Tax totaled $301,416 in 2020 and is projected to generate $366,600 in 2021. Program expenditures in 2020 totaled $243,293 and is estimated to incur current year expenditures amounting to $349,609. When a service or program has dedicated resources, unspent resources should be used as intended or for a specific purpose. As a program under the General Fund, unspent resources remain in the General Fund. For 2021, the estimated variance of$16,991 would remain in the General Fund without approval of this request. If this Special Revenue Fund is approved, the $16,991 would remain in the Clean City Fund to be used for this specific purpose. Staff is requesting a Special Revenue Fund to account for the Clean City program to ensure that all unspent resources continue to be used specifically for addressing the blight in the City of Yakima. The attached Ordinance authorizes the establishment of a Special Revenue Fund 136 "Clean City Fund" to account for the utility tax increase imposed on the City's waste systems' commercial refuse collection to be used to meet Clean City program objectives. Use of a Special Revenue fund to account for revenues and expenditures in this program will ensure that all resources will be used only for the Clean City program objectives.