HomeMy WebLinkAbout10/12/2004 Adjourned Meeting 1 371
ADJOURNED MEETING
OCTOBER 12, 2004 — 5:00 P.M. — 5:30 P.M.
YAKIMA CITY HALL — COUNCIL CHAMBERS
1. Roll Call
Present:
Council: Mayor Paul George, presiding, Council Members Ron Bonlender,
Dave Edler (after 5:26 p.m.), Bernard Sims, and Susan Whitman
Staff: City Manager Zais and City Clerk Roberts
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Absent: Council Members Neil McClure, and Mary Place (both excused)
2. Presentation of the 2005 Budget Forecast and set dates of public hearings:
A. November 9, 2004 to consider Ad Valorem Property Tax legislation at
8:30 a.m.
B. November 16, 2004 on the 2005 Proposed Budget at 2:00 p.m.
City Manager Zais presented the 2005 Budget Forecast, and gave an overview of
the budget and what it represents for next year. The detailed budget is currently •
being assembled and should be distributed the first week of November.
The 2005 budget is lean, fiscally conservative, and balanced within existing
revenue resources without any new taxes. While facing substantial cost increases,
the total budget of $144 million is 1% less than the 2004 amended budget. Capital
projects are also Tess than the 2004 amended budget. The general government
side, which is tax supported, is up only about .5 %, or approximately $200,000. Mr.
Zais itemized the rising costs of nearly $1.6 million; e.g. unfunded mandates,
increased public safety and criminal justice services, and personnel benefits costs.
Of note is a recent late hit. The State Department of Retirement Systems
announced a significant increase in personnel retirement costs for employer and
employees.. This will impact the budget to the tune of $600,000 annually
commencing in July of 2005. While speaking`of the increases in fuel, utility
expenses, insurance, technology, vehicles, health care, etc., he pointed out that we
have managed to offset about $1.2 million of that increase using portions of the
contingency reduction plan, ideas that have come forward, and feedback from the
Strategic Budget Committee. We have reduced selected vacant staff positions
(about .10 FTE), $700,000 in maintenance, overtime, equipment, industrial
insurance, professional services, and the library professional contract. These
services will be reduced but maintained at a level that still enables us to deliver the
core services within the city. The workforce has sacrificed, they've done more with
less, and continue to be responsive and resourceful. But, there will soon come a
time when we are unable to provide the same level of service. ,Many policy issues
are designed to help us improve and do our job more efficiently. We are also
looking ahead to 2006 and have updated our forecast and our projections on how
to face these increases. We will never have less than a balanced budget but will
have to make choices as to how to accomplish that. With regard to cash reserves,
we should not use more than 5% to balance the budget. We're at approximately
4 %;.we've maintained a minimum of 7% in our cash balance. That's a tight margin
and we know why that is necessary when we get hit at the 11 hour like we just did
by the State Retirement Systems. We forecasted revenues to be almost 2 %, but
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ADJOURNED MEETING — 2005 BUDGET
OCTOBER 12, 2004
that was absorbed in financial contractual obligations. That has kept the budget
constrained. We will try to continue to deliver essential services. The budget is
constructed based on the Council's strategic priorities. Criminal justice continues
to outpace all others as strategically significant. Mr. Zais referred to a graph
showing per capita total city expenses noting that Yakima is still at the bottom
averaging approximately $1,000 per capita compared to an average of $1,708 for
other cities of comparable size and population.
City Manager Zais said we need to set hearing dates and recommended
November 2, 2004 as the date for the hearing on the Ad Valorem Property Tax.
We are recommending the 1% allowed by statute, which adds up to $130,000.
The second hearing is for the actual budget and is scheduled for November 16,
2004. There will be budget briefings with individual departments on November 9th
16 23 and 30 and December 7 will be the final wrap up. Budget adoption is
scheduled for December 14 The Strategic Budget Committee will not complete •
their task by the end of this year and their work will carry on into next year. Their
task is to look at the long -term picture and the deeper question of what
contingencies need to be made as initiatives come up that affect revenue. We
expect to come back after they complete their work and review their
recommendations.
SIMS MOVED AND EDLER SECONDED TO SET NOVEMBER 2, 2004 AS THE
DATE OF PUBLIC HEARING TO CONSIDER THE AD VALOREM PROPERTY
TAX LEGISLATION AND TO SET NOVEMBER 16, 2004 FOR THE PUBLIC
HEARING ON THE 2005 BUDGET. The motion carried by unanimous roll call
vote; McClure and Place absent.
3. Adjournment to October 12, 2004 at 5:30 p.m.
SIMS MOVED AND BONLENDER SECONDED TO ADJOURN' TO THE
SCHEDULED 5:30 P.M. STUDY SESSION REGARDING THE MORRIER HOTEL
PROJECT. The motion carried by unanimous voice vote; McClure and Place
absent.
The meeting adjourned at 5:34 p.m.
READ AND CERTIFIED ACCURATE BY 4 i s
C•UNCIL MEMBER < / DATE
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COU CIL MEMBE DATE
ATTEST:
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CITY CLERK PAUL P. GEORGE, MA OR
Minutes prepared by Linda Watkins. An audio and video tape of this meeting are available in the City Clerk's
Office
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