HomeMy WebLinkAbout11/05/2013 05D 2014 Proposed Budget and Ad Valorem Tax - Set Hearing Dates qY L'
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BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No.
For Meeting of: 11/5/2013
ITEM TITLE: Set Dates of November 19, 2013 for Public Hearings on 2014
Budget:
A. 2014 Proposed Budget
B. 2014 Ad Valorem (Property) Tax
SUBMITTED BY: Tony O'Rourke, City Manager
Cindy Epperson, Director of Finance and Budget
SUMMARY EXPLANATION:
It is necessary and desirable to schedule two public hearings regarding the 2014 Budget, as
follows:
A. Set date of public hearing on the proposed 2014 Budget for Tuesday,
November 19, 2013, during Council's regular business meeting.*
and
B. Set date of public hearing regarding the 2014 Ad Valorem Tax (property tax) for
Tuesday, November 19, 2013; during Council's regular business meeting *.
The 2014 Preliminary Budget Summary is on file with the Finance Office and the City Clerk's
Office.
* Note: Council business meetings are held in Council Chambers in City Hall;
the business meetings commence at 6:00 pm; however, the public hearings commence at 7:00
pm.
Resolution: Ordinance:
Other (Specify): Motion to Set Dates
Contract: Contract Term:
Start Date: End Date:
Item Budgeted: Amount:
Funding Source /Fiscal
Impact:
Strategic Priority: Public Trust and Accountability
Insurance Required? No
Mail to:
Phone:
APPROVED FOR City Manager
SUBMITTAL: �r ���� �a�r �,,;
RECOMMENDATION:
Set Dates noted above for public hearings on the 2014 Budget
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2014 PRELIMINARY BUDGET SUMMARY
TABLE OF CONTENTS
SECTIONS
I. INTRODUCTION
➢ Transmittal
➢ Budget Summary
II. GENERAL GOVERNMENT FUNDS
➢ Year in Review
➢ Revenue Trends
➢ Expenditure Trends
III. OTHER FUNDS
IV. STRATEGIC INITIATIVES
V. EXHIBITS
➢ Three -Year Budget Comparison
➢ What You Pay and What You Get
➢ Supplemental Information
CITY OF ( MO /1W
2014 PRELIMINARY BUDGET SUMMARY
Insurance & Risk
Equipment Rental $11,584,515
$5,864,750 5 2%
2.6% Police, Courts, Fire
Water & Irrigation $45,531,246
$17,028,037 111 20 4%
7.6%
City Administration
$7,142,042
Wastewater 3.2%
$33,188,432 Comm &Tech &
14.9% Other Svcs
$9,439,388 - 4.2%
Other Operating
Refuse Funds
$5,670,633 $10,043,717- 4.5%
2.5% Streets, Eng, Plan &
Transit Codes
$9,989,033 P $5,896,041- 2.6%
4 5 °/O
arks & Recreatron
Stormwater
$4,412,448 - 2.0%
$3,115,519 Debt Service
Airport
$12,200,255 $7,113,635 Corn &Econ
14% Air
Capital Improvement Development
5.5% $32,271,456 3.2% $2,223,560 1 0%
14.5%
($66.1 Million General Government)
$222.7 MILLION
Preface -1
i t '-: A • 1
4i rph
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CITY OF
(Yakima
STRATEGIC PRIORITIES
Economic Development
Public Safety
Improve the Built Environment
Public Trust and Accountability
Partnership Development
Adopted 2012
Preface— 3
Section I - Introduction
Transmittal
Budget Summary
INTRODUCTION: TRANSMITTAL
Y� • 4: ° _ "� OFFICE OF THE CITY MANAGER
t i 129 North Second Street
Q . �� ��� , ,a City Hall, Yakima, Washington 98901
1/4`.'a,' Phone (509) 575 -6040
� 01AT BD � 6
MEMORANDUM
TO: Honorable Mayor and Members of the Yakima City Council
FROM: Tony O'Rourke, City Manager
DATE: November 5, 2013
SUBJECT: City Manager's 2014 Preliminary Budget Summary (updated from October 17)
I am pleased to submit for City Council review and consideration the 2014 Preliminary Budget.
This budget is balanced, prudent, and responsive to the City Council's and community's strategic
priorities and needs. The 2014 budget is committed to ensuring a safe community with a thriving
economy that spurs job growth and makes important investments in community infrastructure and
appearance.
Producing a balanced budget has been challenging given the sluggish recovery from the worst
recession in modern time, but we are gradually bouncing back to pre- recession revenue levels.
Nevertheless, local residents and businesses are still struggling given Yakima's economy continues
to lag behind the state and national economies. Our community's unemployment rate is 8 %, while
the state and national unemployment rates are 7% and 7.3% respectively. In addition, Yakima
suffers from a 21% poverty rate compared to a national poverty rate of 16% and state rate of 13.5 %,
and to compound matters, Yakima has the highest percentage (25 %) of residents without health
insurance in the state. Finally, public confidence in the local economy is weak, given 76% of the
2013 Citizen Survey respondents rated the community's overall economic health as fair or poor.
Given these economic challenges, the FY 2014 budget is not proposing any new taxes to further
burden businesses and residents. Instead, we propose a bold and balanced 2014 budget to deliver
on the community's priorities within existing resources. To that end, this budget is driven by the
results of the 2013 Citizen Survey that expressed a strong need to address the City's public safety
challenges, and deferred infrastructure backlog, and to improve the appearance of the community
Introduction • Section I —1
and stimulate economic development. As reflected in this year's survey results, the following areas
were rated as essential or very important for the City to invest in:
Public Safety 90%
Economic Development 90%
Fire Service 84%
Community Appearance 76%
Infrastructure Improvements 75%
Community events /activities 56%
These expressed community priorities align perfectly with the City Council Strategic Plan priorities
and underscore the necessity to stay the course and continue to deliver on the public's and City
Council's core priorities. Investments in the community's key priorities are highlighted in the
following budget overview.
CITY BUDGET
The proposed FY 2014 City Budget, including all funds, is balanced. The FY 2014 expenditure
budget is $222,714,708 and represents an $18,738,757 or 9.2% increase over the projected FY 2013
year -end expenditures. The 2014 expenditure budget of $222.7 million is supported by revenue of
$209.6 million and surplus reserves of $13.1 million. At the end of 2014, citywide budget reserves
are projected to be at $47.4 million, or 21.3% of 2014 budget expenditures. The following chart
highlights expenditures and changes in the 2013 projected year -end budget and proposed 2014
budget.
2013 VS. 2014
REVENUE BUDGET COMPARISON
2013 13 vs. 14
Year -End 2014 Budget
Fund Estimate Budget % Change
General $53,494,980 $57,181,843 6.9%
Parks and Recreation 4,346,215 4,357,215 0.3%
Street &Traffic Operations 5,230,123 4,596,360 (12.1 %)
General Government Subtotal 63,071,318 66,135,418 4.9%
Utilities /Other Operating 65,321,537 64,549,505 (1.2 %)
Capital Improvement 52,451,182 56,205,847 7.2%
Risk Management Reserves 3,638,900 3,360,500 (7.7 %)
Employee Benefit Reserves 13,444,849 11,802,538 (12.2 %)
G.O Bond Debt Service 3,594,215 4,809,441 33.8%
Utility Revenue Bond Debt Service 2,129,686 2,146,286 0.8%
Trust and Agency Funds 527,200 625,171 18.6%
Total $204,178,887 $209,634,706 2.7%
2 — Section I • Introduction
2013 VS. 2014
EXPENDITURE BUDGET COMPARISON
2013 13 vs. 14
Year -End 2014 Budget
Fund Estimate Budget % Change
General Fund $53,431,800 $56,936,455 6.6 %,
Parks 4,128,949 4,412,448 6.9 %,
Streets & Traffic 5,335,438 4,786,409 (10.3 %)
General Government Total 62,896,187 66,135,312 5.1 %,
Utilities /Other Operating 66,633,842 67,737,845 1.7 %,
Capital Improvement 52,210,864 64,889,845 24.3 %,
Risk Management Reserves 3,795,852 3,371,576 (11.2 %)
Employee Benetit Reserves 12,097,944 12,843,823 6.2 %,
G.O. Bond Debt Service 3,690,000 4,968,849 34.7 %,
Utility Revenue Bond Debt Service 2,127,561 2,144,786 0.8 %,
Trust and Agency Funds 523,700 622,671 18.9 %,
Total - Citywide Budget $203,975,950 $222,714,707 9.2 %,
GENERAL GOVERNMENT FUND
The Preliminary 2014 General Government fund expenditure budget, which represents most core
city services, is balanced at $66,135,312 and represents a $3,239,125 or 5.1% increase over the 2013
year -end projected expenditure budget. The revenue budget is $66,135,418 and represents a
$3,064,100 or 4.9% increase over the projected 2013 year end revenues. The 2014 year -end General
Government operating reserves are projected to be $11,083,332 or 16.8% of 2014 expenditures,
which conforms to the City Council's financial management policy of 60 days of working capital to
meet unforeseen, one -time expenditures of an emergent nature, such as a natural disaster,
catastrophic occurrence, or excessive liability judgment.
The 2014 General Government incremental revenue growth of $3 million is based on the following:
Proposed 1% inflation adjustment in property tax levy plus an estimate $285,000
of 0.7% new construction. The combined general operating and debt
service property tax levy will decrease by .36% over 2013 combined tax levy.
5% growth in sales tax (3% base plus new major retailer) $720,000
Franchise and utility tax growth of 5.3% ($500,000 cable tax moved to GG) $777,500
Charge for services growth of 14.8% (New Engineering Programs) $904,000
State liquor excise tax reinstated $150,000
BALANCING STRATEGY
We have balanced the 2014 General Government Fund budget using the following strategies:
Instituting a 2% vacancy rate. Personnel costs are budgeted at 98% to account for a
minimum 2% position turnover /vacancy - Savings: $950,000
Attrition /vacancy of positions - Savings: $175,000
Health plan cost down 15% - Savings: $1,000,000
Jail contract - Savings: $324,000
Introduction • Section I - 3
BUDGET PRIORITIES
Public Safety
The core obligation of government is to provide a safe and secure environment for its residents,
businesses, and visitors. Despite a 60% reduction in crime per capita since 1988, random acts of gang
violence, property crime, and auto theft have created significant community concern about public safety
in Yakima. Based on results of the 2013 Citizen Survey, only 23% of residents rated their overall feeling
of safety as good or excellent. Additionally, 29% indicated a household member had been a victim of a
crime in the past twelve months. In addition to crime, the City experienced 129 fire station brownout
days last year. This represents the number of days the City did not have a complete complement of fire
station personnel and equipment to respond to fire and medical emergencies.
To ensure healthy and vital neighborhoods, the City will continue to place a premium on crime
prevention and suppression, fire and life safety, gang free initiatives, and an appropriate level of
public safety services for Yakima.
Targeted Public Safety Investments
Expand Police Force Presence and Response Capacity $798,000
Currently the City has 1.59 officers per 1,000 residents. The western states average is 1.8 police
officers per 1,000. Accordingly, we are 14% (or 20 officers) below the western states standard. To
meet the western states average would require the hiring of 20 officers at a cost in excess of $2
million annually. Pay for that number of new officers would require a 12% property tax increase.
Given the public's disdain of tax increases, such a revenue increase is not viable. Accordingly, it is
far less expensive to increase our police presence with assigned patrol vehicles than to hire an
additional 20 police officers.
To that end, in mid 2013, the City Council approved the purchase of 74 patrol vehicles for
assignment to all police patrol officers. Assigned police patrol vehicles will dramatically increase
the maximum number of patrol vehicles in the City from 16 to 74. The cost to purchase 74 patrol
vehicles is $4.7 million or $798,000 annually in debt service for the next six years.
In the absence of the proposed purchase of 74 patrol division assigned vehicles, the City would still
have to purchase approximately 72 to 80 patrol vehicles over the next six years based on past
purchasing practices. The vast majority (92 %) of the annual debt service cost is offset by the
deferral of police wage increases for the next two years as agreed by the Yakima Police Patrolman's
Association.
Assigned police patrol vehicles will enhance police presence in the community, improve police
response time, supplement on -duty police, and reduce vehicle maintenance and operating costs.
Eliminate Fire Service Brownouts and Enhance Fire Department Training $528,900
Last year the City did not have adequate fire staffing to operate a full complement of fire service
equipment 129 days (35 %) of the year. Such days were considered "brownout" days. To remedy
this situation, $250,000 in additional overtime funds have been included in the proposed FY 2014
budget. In addition, $300,000 in next year's proposed budget has been included that will allow the
hiring of two additional firefighters and a third to fill the firefighter vacancy that resulted in
4 — Section I • Introduction
reestablishing and filling the Training Lieutenant position. This will ensure adequate staffing and
eliminate brownout days. Overtime funds will also be used to meet peak staffing demand periods
in lieu of full -time staff. In addition to the personnel increase, $75,000 is budgeted in FY 2014 for
additional training to ensure increased fire personnel skills, safety, and career development.
Expand Downtown Bike /Foot Patrols $64,800
Given the public safety and security concerns about downtown, particularly at night, as reflected in
the 2013 Citizen Survey, the proposed FY 2014 budget includes expanding the downtown bike /foot
patrol from the existing summer patrols to both spring and fall patrols as well. The additional
patrols will include March through mid -June and mid - August through October. There will be two
officers on six -hour shifts, four days a week during these additional periods.
Purchase New Fire Brush Truck $130,000
The Yakima Fire Department operates two wild land brush trucks to respond to wild land /urban
brush and grassland fires. One of the brush trucks is 23 years old and is in need of replacement.
The purchase of a new brush truck will ensure the department has reliable and capable wild land
fire suppression capabilities.
Police Training $75,000
The Yakima Police Department is projecting significant senior and supervisory management
turnover during the next several years. To properly develop the future leadership of the
department, the proposed FY 2014 budget includes the investment of $75,000 to provide leadership
and management training for new police managers and to prepare patrol -level officers for career
development opportunities and skill sets.
Indigent Defense $600,000
The Washington Supreme Court has imposed a new caseload limit for attorneys providing public
defense services for misdemeanor cases. The new caseload limit is 300 cases per year if based on a
new case weighting system and 400 cases per year if no case weighting system is used. Due to the
City's heavy DUI and domestic violence caseloads, case weighting is not a preferred option.
Accordingly, the criminal caseload of a public defender cannot exceed 400.
To reduce the cost impacts of the Supreme Court decision on indigent defense, the City has employed a
Pre - Filing Diversion program and a Prosecution Charging Unit. These two initiatives will reduce the
current misdemeanor caseload of 5,100 annually by almost one third. In addition to employing these
two initiatives, the City's Prosecuting Division will also reinstitute prosecution of shoplifting cases
below $50. We anticipate this initiative will add another 200 cases to our criminal caseload. However,
the overall reduction in case filings will reduce the number of additional full -time defense attorneys
needed to comply with the Washington Supreme Court Rule from nine required under our original
caseload to four under the projected caseload. To meet the demands of the additional four defense
attorneys, prosecution staffing levels will need to be increased by one attorney at a cost of $88,550. The
total cost of indigent defense services will be $600,000 in 2014 and will top $960,000 (or $360,000 more)
when the additional needed indigent defense attorneys are added in 2015.
Gang Free Initiative Operations Manager $88,600
The proposed FY 2014 budget includes the hiring a Gang Free Initiative Operations Manager to
direct, manage, and oversee the operations of the Gang Free Initiative and ensure the effective
Introduction • Section I - 5
public and private sector coordination and integration of resources directed toward the prevention
and intervention of gang related crime and violence.
Automated License Plate Reading Technology $135,000
Yakima currently ranks fifth nationally per capita in auto thefts. The City of Yakima remains
committed to reducing auto thefts and plans to lower incidents of theft and increase recovery of
stolen vehicles by purchasing automated license plate reader systems for eight police vehicles.
Additionally, the license plate reader technology will be utilized in the investigation and
prosecution of a variety of other crimes.
Parking Enforcement Officer $56,800
The Yakima Police Department proposes to add one full time parking enforcement officer. The
additional officer will be dedicated to downtown parking enforcement, with a specific focus on parking
space turnover. For the last three months the department has been using a full -time temporary
employee to determine the need for this position to become permanent. Results have shown that the
officer is currently averaging 63 parking infractions a week, with 40 of those being for overtime
violations. It is projected that in 2014 this position will issue 2,450 total parking infractions with 1,470 of
those being for overtime violations. With continued and ongoing enforcement of downtown parking
regulations the department is convinced that parking spaces will continue to turn over and be available
for shoppers, and that parking space abuse will be greatly reduced.
Communications /Dispatch Reorganization $142,200
Three years ago the City combined the management of the Communications Division and the
Information Technology Services (ITS) Division as a cost savings measure to assist in the
reorganization of the ITS division during tight budget times. While that measure has proven
largely successful, given the proposed reorganization of the Communications Division and
increasing demands on the ITS Division, it has become more challenging. Therefore, it has been
determined that it is in the best interest of the City to return the two divisions to separate
management structures. This will specifically split the manager position back into two separate
positions. Additionally, the Communications Administrative Assistant will focus solely on
Communications Division duties while the duties of the ITS Administrative Assistant will be
expanded to include in -house computer user training.
While the City has enjoyed the cost savings of over $100,000 per year with this consolidation, it is
not viable to continue because of workload and critical public safety initiatives that will require
significant attention, more than can be provided by this shared position.
Communication Center Construction/Relocation $195,000
The Communications Center operates as a joint facility with the County 911 system and the City's
dispatching system. The associated 911 costs are paid via an operations contract with Yakima
County from the 911 revenue raised by the 911 excise tax. The dispatch section is funded by the
City with a portion supported by dispatching contracts with outside fire and police user agencies.
The Communications Division has just completed the pre - design study for the new joint
communications center located in the county- owned, old restitution center in Union Gap. The
purpose of this phase is to identify needs, create a preliminary design, and determine costs for the
6 — Section I • Introduction
project. The initial cost estimate for the joint facility is $7.2 million of which $2.9 is from 911 and the
balance, or $4.2 million, coming from the City's dispatch operations.
ECONOMIC DEVELOPMENT
Given the community's desire for more living wage jobs, retail opportunities, enhanced air service,
and economic diversification, the City is committed to the following new initiatives to foster a more
robust and diverse economy for Yakima.
Targeted Economic Development Investments
Downtown Master/Retail Plan $170,000
Plaza Design ($145,000)
The Downtown Yakima Master Plan developed by the Crandall Arambula consulting firm has
identified essential concepts and created a roadmap for initiating a successful transformation of
Downtown Yakima to a vibrant, cultural, arts, and entertainment destination. The first step in this
transformative process is the creation of a public plaza in front of the Capitol Theatre. To that end,
it will be necessary to retain a consulting firm to design and develop conceptual plans for the
proposed public plaza.
Retail Plan ($25,000)
Throughout 2013, Thomas Consulting developed a retail element of the Downtown Yakima Master
Plan. It is proposed that Phase 1 of the retail element of the plan, which consists of proactively
marketing Downtown Yakima to potential investors and site selectors, be initiated in 2014. Phase 1
will also include the formation of a Downtown Yakima Retail Task Force, which will attend the
International Council of Shopping Centers annual conference in Las Vegas in order to meet with
prospective investors and developers.
Downtown Special Events $110,000
By providing increased police security, expanded free parking, creating new Thursday night and Friday
lunchtime concert series, and establishing a Tuesday evening Farmers Market, the City has begun to
attract Yakima residents back to the downtown core. Building on the first phase of downtown activities
initiated in 2013, additional events are being proposed for 2014 to create even more energy, animation,
and vibrancy to downtown. With a proposed budget of $110,000, more City /private sector sponsored
events such as a Cultural Concert Series, Spring Barrel Art Festival, Blues and Brews Festival, expanded
Fresh Hop Ale Festival, and enhanced holiday activities will take place. The goal is to elevate the
quantity and quality of Downtown Yakima events in 2014 in order to continue to develop the area's
growing reputation as a cultural, arts, and entertainment destination.
Airport Marketing and Terminal Improvements $150,000
In partnership with our new airport public - private sector alliance, the City will work with local
media partners to market and promote air service at the Yakima Air Terminal to the local
community. The ultimate goal of the $100,000 marketing commitment is to increase our current
load factors to secure a fourth daily flight by Alaska Airlines from Yakima to Seattle and eventually
expand service to new destinations such as Portland, Spokane, and Salt Lake City.
The current air terminal is 63 years old. To enhance the terminal's overall appearance, the
proposed FY 2014 budget includes the investment of $50,000 for new carpeting and paint.
Introduction • Section I - 7
Cascade Mill Site $2,400,000
The City of Yakima has a number of initiatives related to the Cascade Mill Redevelopment Project
in 2014. The estimated FY 2014 budget investment of $2,400,000 represents the estimated cost of the
program in 2014. This is funded by the Local Infrastructure Financing Tool (LIFT) funding
reimbursement from the State of Washington of $1.0 million annually and a Yakima County SIED
loan /grant is available in the amount of $1,850,000 if needed.
In 2014, the City will be working closely with the Department of Ecology (DOE) to prepare
the permitting documents for cleanup of the former municipal landfill and the removal of
wood waste.
In 2014, a funding strategy will be developed in cooperation with DOE for use of Brownfield
and Model Toxic Control Act (MOTCA) grant funds for the cleanup and remediation of the
landfill and the plywood plant sites.
In 2014, the City will hire an urban land economist to assist in determination of the most
desirable land uses at the Cascade Mill property that compliment but do not compete with
the downtown area.
A roundabout is planned at the intersection of Fair Avenue, Lincoln Avenue, and MLK, Jr.
Blvd. A $990,000 state grant application was submitted in 2013.
The City will proceed with right of way acquisition, as necessary, and the completion of
engineering plans for the Cascade Mill Parkway. The first phase of the Cascade Mill
Parkway includes construction of the Fair Avenue roundabout to facilitate environmental
cleanup at the landfill site. We anticipate a donation of land that will substantially meet the
$1.0 million local match requirement.
The federally required Interstate 82 Interchange Modification process will be largely
completed in 2014. The Washington State Department of Transportation is the lead agency
for the Interchange Project and will be supported by the City and Yakima County.
The City and County have a contract with Lochner & Associates to prepare the engineering
and environmental review of the Interchange Project, the East -West Corridor and the
Cascade Mill Parkway. Other development site issues have also been addressed under this
professional services contract.
BUILT ENVIRONMENT
The City's overall appearance and infrastructure are critical components of the public's perception
of the community's image, quality, and vitality. Based on the 2012 and 2013 Citizen Surveys, the
community's perception of the current built environment falls far short of its expectations. The
restoration of the City's built environment is a necessity if Yakima residents are to express a more
positive attitude about Yakima.
To that end, the following 2014 initiatives are proposed to enhance the visual quality of the
community and to ensure the provision of essential infrastructure.
Targeted Built Environment Investments
Road Improvements $16,500,000 (Improvement) — $2,000,000 (Debt Service)
The City's 802 lane miles of roads have an average Paving Condition Index (PCI) score of 54. Based
on a 100 -point scale, the City's current road conditions are poor. Compounding this situation is the
fact that while 3% of Yakima's roads are currently classified as failed, 23% or (185 lane miles) are
8 - Section I • Introduction
projected to attain a failed classification by 2020 if not rehabilitated soon. The Yakima public is well
aware of this, given almost 80% of the 2013 Citizen Survey respondents rate street repairs as fair or
poor. Additionally, 72% of voters supported a City Charter amendment in August 2013 requiring
the City to invest at least $2 million annually on the restoration or reconstruction of Yakima streets.
The cost to rehabilitate one lane mile of road with a grind and overlay is approximately $180,000.
The cost to reconstruct a road after it has failed is approximately $600,000, or 300% more than to
grind and overlay it. A pay -as- you -go $2 million dollar annual cash committed approach would
enable the City to grind and overlay approximately 11 lane miles annually; assuming road
construction prices remain static. This pace of road rehabilitation is insufficient to prevent the
projected failure of at least 60% of the 185 lane miles of road projected to fail by 2020.
In 2013, the City Council appropriated $375,000 for the first annual payment on a $5 million, 15 -year
loan to grind and overlay 28 lane miles of road. Public response to this work has been very positive.
Staff proposes building on the 2013 road improvements and taking advantage of excellent road
rehabilitation pricing with an aggressive 2014 road rehabilitation plan based on issuing a 10- year
term bond of $16 million dollars to grind and overlay 92 lane miles of arterial streets and residential
streets, such as Summitview, Lincoln, Washington, 1st Street, Nob Hill, Tieton, 19th Avenue and 2nd
Street. This aggressive plan will prevent having to reconstruct these critical streets at a much
higher cost and will extend their useful life by 10 to 15 years.
The annual debt service on a 10 -year term, $16.5 million dollar road rehabilitation bond is
approximately $2,000,000, which is currently budgeted in a debt service fund. This investment
would meet the minimum City Charter obligation to spend $2 million annually on road
rehabilitation or reconstruction.
Given the short time span to prevent the failure of 185 lane miles of road by 2020, the staff
recommends the more aggressive plan to grind and overlay 92 lane miles of road in 2014, and
identify additional resources in the near future to address the additional 93 lane miles of arterial,
collector, and residential streets that are projected to fail by 2020.
Airport Taxiway /Airfield Lighting Improvements $11,100,000
The Yakima Air Terminal is an integral part of the City's transportation system and economic
development infrastructure. Through close cooperation with the Federal Aviation Administration,
the Airport recently received two grants totaling $10 million matched by $1.1 million in airport
passenger fees to rehabilitate the airport's primary taxiway and associated taxiway connectors. In
addition to the two grants, the airport will utilize its passenger facility charges to fund the
remaining balance of the project. This project will replace aging asphalt, taxiway lights, taxiway
signs, and airfield markings to ensure the airport will continually meet Federal Aviation
regulations while meeting future aviation demands. This project is slated to begin in spring 2014
and should be completed before year's end.
Street Right of Way / Street Cut Program $150,000 (New Revenue)
When commercial or utility entities perform maintenance or construction activities in the City's
street right of way, they interfere with the public's ability to use that portion of the right of way,
Introduction • Section I — 9
create potentially dangerous obstacles to the traveling public, and often damage public
infrastructure.
Excavation of paved streets degrades and shortens the service life of streets. Over 17 nationwide
studies have provided conclusive evidence that no matter how well a utility cut is restored; there is
permanent damage beyond the area of the utility excavation. These excavations increase the
frequency and cost to the public of necessary street resurfacing, maintenance, and repair.
The City's current street cut permit fee of $100 and the associated patching of utility cuts completed
by utility companies do not compensate the City for long -term damage caused by utility cuts. A
street cut fee is an effective incentive for utility companies to coordinate their excavations with the
City's repaving schedule and generate funds to pay for road resurfacing that becomes necessary
due to long -term damage caused by cuts. This is particularly critical now that the City is making
significant investments to improve its streets.
Based on the completely revised and updated chapter of the Yakima Municipal Code, the
Engineering Division is proposing adoption of a comprehensive right of way encroachment and
street cut program which will enable the City to control the duration and extent that an entity
encroaches in the street right of way, improve the safety precautions taken to protect the public and
the workers, and revise the permitting fee structure so that the cost of the permit is commensurate
with the size and duration of the encroachment. Additionally, entities that cut City's pavement will
not only have to repair their damage, but they will have to pay a restoration fee that will be used
for future road resurfacing and replacement. Ultimately, the program goals are to reduce the
amount of time that the traveling public is inconvenienced by commercial activities in the right of
way, dramatically improve work zone safety, and protect the City's infrastructure.
North First Street Improvements $1,200,000 (2014) - $1,518,000 (2015)
In 2013, the City Council authorized a landscape architect to prepare a final design for the
landscape and pedestrian environment of the North First Street Revitalization Project, Phase 1
element (I -82 to "N" Street). Phase 1 will include selecting a preferred alternative from a limited
choice of options. In 2014, a civil engineering firm will be selected to prepare construction
documents for the project design which will include the design for undergrounding of power and
other utilities. Construction drawings and plans should be completed in the summer of 2014.
Project construction is expected in early 2015 and will be funded by a Surface Transportation
Program grant of $2,718,000. The City could spend up to $1.2 million of the grant in 2014 and the
remaining grant funds in 2015.
In 2014, the City will continue seeking funding for additional phased construction of the North First
Street Revitalization Project (from "N" Street to Lincoln Avenue). Finally, police, fire, and code
enforcement will continue to ensure life and public safety and sign violations and issues are
addressed along the North First Street Corridor.
Graffiti Abatement Coordinator $50,000
To improve the visual quality of the City, the City proposes to budget a second Graffiti Abatement
Coordinator to assist, organize, and direct the cleanup of graffiti sites soon after they are reported
in order to diminish the visual blight graffiti creates in the community.
10 - Section I • Introduction
Update Stormwater, Wastewater, & Industrial Wastewater Rate Studies $110,000
The City of Yakima is required to complete a utility rate study that will determine the billing rates
required to provide utility services. The existing Wastewater and Stormwater Rate Ordinances
expire at the end of 2014. The study, which will be conducted in 2014, will also initiate rates for the
City's recently built industrial wastewater treatment process. The City will seek the services of a
third -party financial consultant to complete an analysis of all three utilities and recommend a rate
structure for the next three years. The study will include a forecast of operating revenues,
expenditures, capital needs, and compliance with debt service and cash reserve policies to provide
a rationale and fair rate revenue strategy for our utility customers.
Reinstate One Supervising Traffic Engineer $94,100
The existing Traffic Engineering Division consists of the Streets & Traffic Operations Manager, a
Traffic Systems Analyst, and two Traffic Engineering Technicians. The Supervising Traffic
Engineer position was eliminated in the 2010 budget as a cost cutting measure. The position was
eliminated with the understanding that it would need to be reinstated when the economy
recovered and development returned. The present workload is significant enough that it is difficult
for the Streets and Operations Manager to provide timely and detailed review and guidance of
development applications, citizen requests, traffic signal timing patterns, traffic data collections,
and traffic safety analysis while still providing adequate oversight to the street and traffic
maintenance programs. Existing staff does not have the training or expertise to take on most of
these tasks. Other work that needs to be done that has been deferred includes development of
prioritized traffic safety and operations capital improvements lists, update of traffic policies and
standards, and a detailed annual review and analysis of high accident locations.
Expand Code Enforcement $100,000 (2014) - $133,300 Annually
For the past two years, the City's Code Enforcement services have been rated as poor in Citizen
Surveys. The Code Enforcement Division believes these ratings are the result of insufficient staffing
levels and the City's "complaint- driven" response system, which was instituted several years ago in
lieu of a proactive code enforcement approach. The Code Administration Division proposes
adding two additional code enforcement officers to the existing three starting in April 2014. This
additional staff will allow the City to be both more proactive and better able to respond to code
violations, in particular sign violations, to make the City more attractive.
Implement Integrated Stormwater Plan $600,000
The City stormwater program has completed a Stormwater Collection System Master Plan that
identified $672 million in capital improvement needs over the next 20 years for improving this
sector of the built environment. Improved stormwater conveyance and retention is necessary to
maintain NPDES permit compliance and to mitigate flood hazards.
The Stormwater Capital Budget has $600,000 available in 2014 to start implementing the master plan.
Integrating stormwater projects into other City initiatives creates the possibility of significant cost
savings. For example, incorporating "low impact development" features into downtown planning,
North 1st Street, or the Mill Site redevelopment could add value to these projects with improved
drainage that incorporates improving the appearance and function of our built environment.
Installation of Biosolids Dryer $4,700,000 - 2014 / Total - $7,900,000
The Wastewater Division will install a $7.9 million biosolids (sludge) dryer to produce a Class A,
exceptional quality biosolids product that can be sold as a soil amendment. The dryer will improve
Introduction • Section I -11
the built environment by increasing Wastewater Treatment Facility reliability by, utilizing bio -gas
produced by the new industrial wastewater treatment system and reducing $200,000 annually in
hauling and permitting expenses associated with Class B biosolids. The project also defers the
necessity for the installation of an $8 million to $10 million dollar Digester project. Funding for this
project will come from two Washington State Department of Ecology loans at 2.5% annual interest.
Up to $4.7 million will be spent in 2014. The second loan of $3.2 million will be used in 2015.
Complete Wastewater Collections Master Plan $100,000
The City began a systematic evaluation of both wastewater pipeline capacity analysis and condition
assessment in 2010 to determine short term and long term facility priorities for the wastewater
collection system. Akel Engineering is nearing completion of the capacity analysis of the system to
identify new lines that are necessary to provide service due to the continued growth of the community.
Existing trunk lines within the system have been identified as undersized. The City's crew is inspecting
sewer lines where its equipment is capable of collecting data. In addition, the City has contracted with
RedZone Robotics to provide closed caption television, sonar, and laser data that will provide a
condition assessment of the City's larger trunk lines. The condition assessment has identified pipelines
to be repaired or replaced. The compilation of capacity and condition data will provide the information
necessary for a Wastewater Collections System Master Plan. The Master Plan will allow the City's
wastewater infrastructure to be maintained and expanded to ensure reliable wastewater capacity and
service and accommodate future economic and residential growth.
Pedestrian and Bicycle Connectivity Plan $40,000
Both the 2012 and 2013 Citizen Surveys highlighted connectivity, or the ability to get around the
City by foot or bicycle, as an area of concern. In response to this concern, the Engineering Division
will begin the process of creating a comprehensive connectivity network by identifying existing
sidewalks and bicycle lanes and starting the design of a connectivity master plan. This plan will
work in conjunction with the Parks & Recreation initiative to improve path and trail infrastructure
and the Safe Routes to School program.
Implement a Pilot Recycling Program $40,000
Based on the community's strong desire to have a comprehensive, low -cost recycling program, the
Refuse and Recycling Division proposes to conduct a 6- month, small scale (500 to 600 households)
Pilot Curbside Recycling Program to test assumptions and validate cost estimate of a full - scale,
citywide recycling program. If the pilot program proves effective and successful, plans to
implement a citywide program can be developed and implemented.
City Hall Improvements $200,000
Yakima City Hall was built in 1949 and has had few upgrades made to it over the past six decades.
It is proposed that in 2014 several customer - focused interior improvements be made to the first
floor of City Hall in order to update the appearance, lighting, and ADA accessibility to the west
lobby entry and customer service counters.
PARTNERSHIPS
The City of Yakima is committed to building cooperative and reciprocal partnerships with local,
regional, state, federal, non - profit, and private entities to enhance the vitality and quality of life for
its residents, businesses, and guests. To that end, the City proposes the following partnership
investments in 2014.
12 — Section I • Introduction
Targeted Partnership Investments
Capitol Theatre Improvements $372,000
Historically, the City has given more toward the annual operating needs of the Capitol Theatre to
manage and operate the facility than to the capital repairs and improvements necessary to ensure the
theatre's long term viability. Currently, more than $1.8 million in deferred capital needs related to the
theatre exist. Those needs include ADA and safety upgrades, repairing and upgrading the stage lighting
system (includes safety issues), replacing the orchestra shell, replacing theatrical masking/backing,
upgrading the asbestos fire curtain, main curtain and valance, improving the counterweight rigging
system, carpet, lobby elevator, dome lighting, front entry door, and Robertson Room ceiling tile.
Funding for the entire list of capital projects is not currently available. The 2014 Capitol Theatre funding
request does include $140,000 for ADA and priority safety upgrades as identified in a recent Life Safety
Evaluation report on the facility, as well as operations support of $232,000.
Convention Center Management Fee Increase $708,200
The Yakima Valley Visitors & Convention Bureau manages and operates the Yakima Convention
Center. Over the years, operation and management costs have continued to increase. Staff is requesting
that the management and operation fee be increased by $13,900 in 2014 to assist in marketing efforts of
Yakima in order to stimulate economic growth through convention business and tourism.
YPAL Facility Improvements $50,000
Staff proposes $50,000 in upgrades to the YPAL Center located in Northeast Yakima, as the first
installment of a $500,000 commitment to upgrade the Center at Miller Park. YPAL partners with
local agencies and hosts the Youth and Family Development Center as part of the Gang Free
Initiative. In addition to the City's contribution of $50,000, staff is working with a local business on
a proposal to provide an additional $250,000 over five years for improvements at YPAL so it can
continue as the hub of Youth and Family Development services in Yakima. Some of the possible
improvements in 2014 could include new windows, paint inside and out, classroom renovation,
restroom upgrades, and new flooring.
New Vision $33,000
New Vision has successfully linked private and public sector entities to promote economic growth
throughout the Yakima Valley for the past 27 years. New Vision is focused on assisting local
businesses to thrive, attracting new businesses, and developing the local workforce to generate
economic growth and prosperity. The City proposes to invest $33,000 in 2014 to foster the
continued success of the New Vision public - private partnership.
Southeast Community Center $45,000
The Southeast Community Center is another City -owned facility in need of upgrades. While the
City pays a fee for management and operations of the facility, it has contributed minimally toward
facility improvements. The existing restrooms are 40 years old, in disrepair, and are beginning to
fail. Staff proposes that the City provide the supplies and materials needed for the remodel along
with major plumbing and electrical contractor costs, while the Opportunities Industrialization
Center, the facility's contracted operator, has agreed to contribute the construction labor portion of
the updated services. The total renovation is estimated at $100,000 if contracted out. The cost for
supplies and materials is estimated at $45,000, or less than half of the total cost.
Introduction • Section I -13
Visitors Information Center Additional $20,000 - Total Budget $60,000 (2014)
The City and various partners built the official Visitor Information Center (VIC) located off of I -82
near Yakima Avenue in 2003. The Yakima Valley Visitors & Convention Bureau (YVVCB) operates
and maintains the facility. Currently the VIC is partially funded through the Tourist Promotion
Fund ($40,000). The balance of support comes from the private sector. City support has remained
at $40,000 for the past 10 years, but expenses have grown. As the structure is now 10 years old,
costs for personnel, maintenance, utilities, and other operating expenses have risen. Private sector
support has been strong, but can't alone keep up with rising expenses. Staff proposes increasing
the City's annual contribution from $40,000 to $60,000 in 2014.
The VIC stimulates positive economic growth. It serves more than 14,490 people each year plus
thousands of others through phone calls, emails, mailings, and relocation requests. Surveys of visitors
in 2013 show that 20% of those served at the VIC extended their stays, with the majority staying at least
one extra night. Using this data as a baseline, it is estimated that these extended stays resulted in a
minimum of $275,088 in new visitor spending in 2012 alone, and similar figures are expected for 2014.
PUBLIC TRUST /ACCOUNTABILITY
Capital Improvements $65,000,000
In response to the public's dissatisfaction with the City's infrastructure, $65.0 million will be
invested in 2014 to address a host of community needs. The top 10 projects are listed below.
2014 TOP 10 CAPITAL PROJECTS
2014
Description Budget Funding Source
Road Improvements $16,500,000 GO Bonds
Airport Taxiway Improvements 11,162,885 Grant /Match
Railroad Grade Separation 4,898,000 State & Federal Grants
WW Treatment Plant - Biosolids Impr Project 4,700,000 State Loans /Capital Rates
Yakima Rev Development Area (LIFT) 2,473,235 State/Match /County SIEDProg.
Water Treatment Plant Lagoons 2,100,000 State/Match
WW Collection System - Beech St 2,000,000 Capital Rates /Reserves
Alternative Outfall/WW Treatment Plant 1,800,000 Capital Rates /Reserves
Naches River Water Treatment Plant Intake 1,500,000 Capital Rates /Reserves
Replace 3 Transit Buses 1,300,000 Transit sales Tax
$48,434,120
Quality Customer Service Training $50,000
Based on the information gathered from citizen and employee surveys, in 2014 the City will
implement an Excellence in Customer Service Academy. The academy will be similar to a college
model, with classes and coursework activities. We will have 15 -20 exceptional employees that will
learn to be the trainers for the academy. We will develop a mission, quality improvements, and
deploy standardized practices for the new process. At the end of the academy, there will be a
graduation ceremony to celebrate our successes. The primary goal of the academy is to align the
service level on the employee survey with the citizen survey.
14 — Section I • Introduction
Citizen Survey $35,000
The Yakima City Council authorized a Citizen Survey in 2012 and 2013 to find out what community
members thought about City services and to help identify areas that needed improvement. Results
of the surveys helped the Council establish a set of priorities that led to the redesign of City
programs and services to address issues ranging from street repair and employment opportunities
to crime prevention and Yakima's overall image. The Council committed to conduct follow up
surveys on an annual basis for the foreseeable future in order to track progress and ensure that the
City continues to focus on priorities that community members feel are key to Yakima's success. To
this end, the 2014 Citizen Survey will cost approximately $35,000, the same as in 2012 and 2013.
Employee Survey $13,000
The City of Yakima has made a commitment to seek input from employees on the health and
climate of the organization and then use that information to develop strategies for organizational
improvements. In 2013, the City conducted its first annual employee survey in order to obtain a
baseline understanding of the employees' perspectives and concerns as well as provide input on
strengths and opportunities of the organization. This assessment is one tool to help City leadership
leverage strengths and address opportunities to continue its work to create a higher performing
organization. Staff suggests that the employee survey be conducted in 2014 to see what
improvements have been made and what changes still need to be made.
FUND BALANCE OPERATING RESERVE
The General Government projected year end Operating Reserve is at $11,068,324 or 16.7% of annual
expenditures, which is at the City Council's desired 16.7% or 60 days of working capital finance
management standard. This level of operating reserves is sufficient to meet unforeseen, one -time
expenditures of an emergent nature, such as a national disaster, catastrophic occurrence, or
excessive liability judgment.
CONCLUSION
The 2014 proposed budget addresses the City's essential priorities and capital needs and will allow
the City to achieve critical community and Strategic Plan goals. It also puts in place a plan that
supports the City's efforts to ensure continued financial stability and sustainability in future years.
In presenting the budget to the City Council, I would like to acknowledge and express appreciation
to the City Leadership Team and staff for their willingness to submit realistic budget requests and
develop initiatives to meet the Council's and the community's priorities. I would also like to
recognize the Finance Department for its assistance in preparing this budget and its more
streamlined, but comprehensive presentation.
Finally, I would like to thank the City Council for its leadership in adopting the Strategic Plan, Five Year
Financial Plan, and 2013 Citizen Survey which have served as the foundation for the proposed 2014
budget, and for its commitment to move the City forward toward a brighter and more sustainable future.
Sincerely,
Tony O'Rourke
City Manager
Introduction • Section I —15
INTRODUCTION: BUDGET SUMMARY
This Budget Summary Section provides a high -level overview of the 2013 year -end forecast and the
preliminary 2014 budget, along with significant issues that have affected the City's fiscal position in
the past year and /or anticipated to have a material impact in 2014.
2013 YEAR END ESTIMATE VS. 2014 BUDGET OVERVIEW
The chart below shows the 2014 budget, including beginning and ending fund balances in
summary format.
2014 BUDGET SUMMARY
Est. 2014 Estimated
Beginning 2014 2014 Use of 2014 Ending
Fund Balance Revenue Expenditure Reserves Fund Balance
General Fund $9,245,322 $57,181,843 $56,936,455 ($245,387) $9,490,709
Parks and Recreation 678,057 4,357,215 4,412,448 55,233 622,824
Street & Traffic Operations 1,159,848 4,596,360 4,786,409 190,049 969,799
General Government Subtotal 11,083,227 66,135,418 66,135,312 (105) 11,083,332
Utilities /Other Operating 16,381,886 64,549,505 67,737,845 3,188,340 13,193,546
Capital Improvement 22,266,439 56,205,847 64,889,845 8,683,998 13,582,441
Risk Management Reserves 1,125,161 3,360,500 3,371,576 11,076 1,114,085
Employee Benefit Reserves 6,288,585 11,802,538 12,843,823 1,041,286 5,247,299
G.O Bond Debt Service 553,278 4,809,441 4,968,849 159,408 393,869
Utility Revenue Bond Debt Service 1,758,713 2,146,286 2,144,786 (1,500) 1,760,213
Trust and Agency Funds 1,008,424 625,171 622,671 (2,500) 1,010,924
Total $60,465,713 $209,634,706 $222,714,707 $13,080,003 $47,385,710
The estimated resources for all funds, including beginning balances, are $270.1 million. This
represents an increase of $5.7 million or 2.2% more than the 2013 Year -End Estimate of $264.4
million.
The expenditure budget for FY 2014 for all funds is $222.7 million. This represents an increase of
$18.7 million or 9.1% more than the 2013 Year -End Estimate.
Some features of the Fiscal Year 2014 budget that should be noted are:
Revenues
The property tax levy for FY 2014 is estimated to be $3.113 per $1,000 of assessed value, an
increase of $0.0235 or 0.76% over the current rate.
The voter - approved debt service levy rate is cut by more than half, because 2014 is the last
year of voted debt service for Fire capital improvements. It is estimated to decrease from
$0.0541 to $0.0193.
The combined general operating and debt service levy rate is $3.1323 per $1,000 of assessed
value, a decrease of ($0.0113) or (0.36 %).
16 — Section I • Introduction
A 5.1% Wastewater rate increase approved in December 2011 will add approximately $3.81
bimonthly for an average single family residence. This is the 3rd year of a 3 year rate
increase.
A 5.5 % Irrigation operating rate increase approved in December 2010 will add
approximately $1.28 bimonthly for an average single family residence. This is the 4th year of
a 4 year rate increase.
Water, Stormwater and Refuse utilities are not proposing rate adjustments in 2014. All of
these operations have rate studies in progress.
Personnel
748.42 total proposed full -time (FTE) positions in all funds for Fiscal Year 2014.
A net increase of 14.25 FTE's from 2013 — including 7 with Airport Operations.
Refer to the General Staffing section for more information.
Capital Improvements
The City will invest $66.6 million in FY 2014 to address its capital needs.
FINANCIAL CONDITION
Despite several years of downward pressure on revenues mainly due to tax relief legislation and
the economic recession, Yakima continues to maintain fiscal stability.
Bond Ratings
The City is proud of affirming a "AA -" on its water and wastewater utilities, and an "A +" rating on
its general obligation bonds from Standard and Poor's in 2012. Good ratings mean the City's
general obligation bonds are considered to be of high investment quality, which translates into
lower interest rates and corresponding lower interest payments.
Revenues
Ad valorem taxes - To ensure its long -term financial success, the City is proposing to set its
operating property tax levy at rate of $3.113 per $1,000 of assessed value in Fiscal Year 2014. The
State law allows the City to impose 1% above the prior year levy, plus levies for new construction
and annexations. The City estimates to collect $285,000 or 1.7% more in the FY 2014 levy than it did
in FY 2013.
The City's sales, franchise, and other demand- driven revenues fluctuate with the economy. As the
City has learned over the past few years, a slumping economy leads to lower retail sales, which in
turn, translates to lower sales tax revenue. Less traveling leads to lower fuel tax revenue. Declining
economic growth leads to less construction, less renovation, fewer home improvements, and thus
declining revenue. Positive economic growth, on the other hand, promises to reverse this trend.
Most economists are expecting the economy to grow at a modest rate during the coming year.
However, rather than growth returning to normal levels quickly, the economy will move slowly but
steadily upward. The City has, therefore, adopted a moderate growth philosophy for FY 2014
revenue estimates.
Introduction • Section I -17
MAJOR POLICY CONSIDERATIONS
The current recession continues to present a strong headwind, and the lethargic economic recovery
only exacerbates the City's financial pressures. According to most economists, the economy's key
bellwether, the Gross Domestic Product (GDP), is forecast to grow only 2.0% to 3.0% annually.
5 - Year Plan Financial Plan
In the summer of 2012, the City Council was presented with a preliminary 5 -year financial
forecast that was based on existing revenue streams and city services. Those projections were
based on an assumption of continuing business as usual - with our current structure, services,
operating practices, etc. That report provided a look at the financial consequences of
maintaining the status quo, which were annual deficits ranging from $1.5 to $4.0 million
between FY 2014 and FY 2017.
On August 21St, 2012, the official 5 -year financial plan was adopted by the City Council. This was
the next step in looking at long -term strategies to balance the General Government (i.e. tax -
supported funds, which include General; Streets and Traffic Engineering; and Parks and
Recreation) budgets.
The Five -Year Financial Plan was designed to focus on the City's General Government given these
are core to the City's ability to provide essential services and capital improvements As time goes
on, this plan is being monitored, as economic/business conditions will likely be different from
preliminary estimates. Any significant changes in assumptions will require future modifications to
the plan.
The 5 -Year Financial Plan was meant to assist the City Council in meeting the following key goals:
Ensuring a financially sustainable future.
Preservation of the City's core services.
Commitment to funding infrastructure; facilities and rolling stock.
Addressing Strategic Plan priorities.
Based on the results of the preliminary Five -Year Financial Forecast, the City developed a longer -
term strategy for dealing with both the current and future budget reality, which included
maintaining a 2% vacancy rate that was to be carried forward into future years.
Although the City of Yakima is slowly coming out of the worst economic recession in recent
history, the Five Year Financial Plan represents a prudent and balanced strategy for meeting its
fiscal challenges. The strategy reflected in the Five Year Financial Plan allows the City to eliminate
projected budget gaps, and make critical investments in its street infrastructure. Moreover, the
strategy will allow the City to continue to provide essential, outstanding cost effective service and
capital improvements to our residents and businesses.
Despite economic hurdles, the City must continue to invest in its core strategic priorities. To that
end, several initiatives have been proposed in 2013 and 2014 to address and advance the City
Council's five strategic priorities in the 5 -Year.
18 - Section I • Introduction
2014 EXPENDITURE BUDGET BY FUND
($222.7 MILLION)
G 0 Bond Debt
Risk Management Service
Reserves Employee $5 0
Capital $3 4
Benefit 2 2%
Improvement 1 5%
$64 9 Reserves
291 % 8 Utility Revenue
5 8
5 8 Bond Debt Service
$21
10%
Trust and Agency
Funds
$0 6
03%
General Fund
$56 9
256%
Utilities /Other
Operating
$67 7 Parks and
30 4%
Street & Traffic Recreation
Operations $4 4
$48 20%
21%
2014 RESOURCES BUDGET BY FUND
($270.1 MILLION)
G O Bond Debt
Risk Management Service
Reserves Employee $5 4
$4 5 Benefit 2 0%
Capital 1 7% Reserves
Improvement $18 1
$78 5 6 7 Utility Revenue
29 1% Bond Debt Service
$3 9
14%
Trust and Agency
Funds
$1 6
06%
General Fund
$66 4
Utilities /Other 24 6%
Operating
$80 9
300%
Parks and
Recreation
Resources = Street & Traffic $5 0
Revenues plus Operations 1 9%
Beginning Fund Balance $5 8
21%
Introduction • Section I —19
The proposed 2014 total city -wide expenditure budget of $222.7 million is balanced within existing
resources and reflects an increase of $18.7 million from the 2013 year -end estimate of $204.0 million.
The 2014 General Government budget of $66.1 million is approximately $3.2 million more than the
2013 year -end estimate of $62.9 million. The General Government budget consists of three separate
Funds: the General Fund, the Parks Fund and the Streets and Traffic Fund. Over 67% of these tax
supported budgets are devoted to public safety services in the 2014 budget; this includes Police,
Fire, Courts and support to these departments from the Technology Services, Finance, Legal, and
Human Resources divisions, along with code enforcement, animal control, street lighting, traffic
control, and snow and ice removal activities.
MID - YEAR CHANGES
As the 2014 budget was developed, changes that needed to happen before the 2014 budget year
were found and expeditiously put into place during 2013. The following are the elements that were
implemented /authorized in 2013, and incorporated into the 2014 budget.
MID -YEAR CHANGES
Description Inc /Dec Notes Priority
General Fund
Delete 1.0 HR Specialist Position ($75,800) Replaced with PT HR Assistant PT
Delete 0.75 Deputy HR Manager Position (46,200) Partially funded in other funds PT
Add 0.6 Human Resources Asst 45,000 Replaced HR Specialist PT
Add 1.0 Telephone Technician 68,500 Public Safety Interoperability PS
Add 1.0 Graffiti Abatement 50,000 Temp (42%) to FT Permanent BE
Add 1.0 Fleet Technician 61,000 Police Car Program PS
Add 1.0 Police Lieutenant 124,300 SRO Contract - Rev $52k PS
74 Police Vehicles Program 798,000 Authorized mid -year 2013 PS
Fire Airpac Debt Service 88,000 Authorized mid -year 2013 PS
$2M Street Impr. Debt Service 2,000,000 Voter App. Charter Amend. 8/13 BE
Total General Fund 3,112,800
Add 0.2 Wastewater Laboratory 11,000 Perm Part Time 0.5 to 0.7 BE
Delete 0.25 Deputy HR Manager Position (18,000) Partially funded in GF PT
Taxiway Alpha /Airfield Improvements 11,100,000 FAA Grant /Local Match BE
Total City -Wide $14,205,800
2014 BUDGET ADJUSTMENTS
General Government Program Changes
The following chart is a summary of programmatic changes included in the 2014 budget, along
with the strategic priority being addressed by each initiative. This list is sorted by departmental
responsibility in contrast to the prior City Manager transmittal that is sorted by Strategic Priority
20 — Section I • Introduction
GENERAL GOVERNMENT STRATEGIC INITIATIVES
Description Increase Notes Priority
City Manager
Add 1.0 Gang Free Initiative Manager $88,600 Transition f /Planning - Svc Mgmt PS
Comm & Tech/TT Reorganization 142,200 Reinstate IT Manager PS
Enhance/Expand Downtown Events 10,000 Total Budget $110,000 ED
Implement Airport Marketing Plan 100,000 ED
Quality Customer Service Academy 50,000 PT
390,800
Community Development
Add 2.0 Code Compliance Officers 100,000 9 months. $133,300 Annually BE
Police
Parking Enforcement Officer 57,000 Supported by $40KTicket Revenue PS
Expand Downtown Bicycle/Foot Patrol 68,800 Expanded to Spring/Fall PS
Expand Training Funding 75,000 Succession Planning PS
200,800
Fire
Fire Staffing to Eliminate Brownouts 321,000 General Fund Portion PS
Expand Training Funding 75,000 PS
396,000
Utilities & Engineering
Right of Way /Street Cut Program
Reinstate Supervising Traffic Engineer 94,100 BE
Street Cut Charge (150,000) Revenue BE
(55,900)
Public Works
Add 1.0 Parks Administrative Assistant 59,500 Reinstate - was shared w /Planner PA
Improvement to SE Community Center 45,000 Partnership with OIC PA
104,500
Total General Government $1,136,200
Strategic Priority Legend
Economic Development ED Public Trust and Accountability PT
Public Safety PS Partnerships PA
Built Environment BE
Introduction • Section I — 21
Other Fund Changes
The following is a summary of strategic initiatives in the other operating and utility funds.
OTHER FUND STRATEGIC INITIATIVES
Description Inc /(Dec) Notes Priority
City Manager
City Hall Improvements $200,000 REST 1 BE
Implement Downtown Retail /Master Plan 170,000 Economic Development Fund ED
Cascade Mill Project 2,400,000 Cont St Design/Landfill Cleanup ED
Visitor Center Funding 20,000 Increase from $40k to $60K PA
Convention Center Management Fee 13,900 Increase from $694.3Kto 798.2K PA
Capitol Theatre Repair /Improvements 140,000 PA
Airport Terminal Improvements 50,000 Airport Operating Fund BE
2,993,900
Police
New Communications Center Construction 195,000 1st yr Debt Svc ($4.2M Impr.) PS
License Plate Reader 135,000 Law and Justice Capital Fund PS
330,000
Fire
Brush Truck 130,000 Fire Capital Fund PS
Fire Staffing to Eliminate Brownouts 132,900 EMS Fund PS
262,900
Utilities & Engineering
Pedestrian/Bicycle Connectivity 40,000 Arterial Street Fund - Gas Tax BE
Start Implementing Integrated SW Plan 600,000 Stormwater Capital BE
Rate Studies for SW/WW & Ind WW 110,000 Utility Fund BE
Wastewater Collections Master Plan 100,000 Wastewater BE
Biosolids Dryer 4,700,000 Total Project - $7.9 million BE
Salmon Recovery /Riparian Restoration 1,800,000 Grants/Utility Revenues BE
Road Improvements 16,500,000 Funded by GO Bonds BE
23,850,000
Public Works
Add 1.0 Department Assistant II 46,100 Reinstatement - PW Admin Chrgs
Add 1.15 Transit DA II 67,800 Transit Operating
Add 0.3 Transit Cleaner 10,000 Transit Operating
Purchase 3 Heavy Duty Buses 1,290,000 Transit Capital
Dial -A -Ride Replacement Plan 392,000 Transit Capital
Fleet Additions/Replacement 1,621,000 Equipment Rental
Diesel Particulate Filter Cleaning Equip 85,000 Equipment Rental
3,511,900
Total City - Other Funds $30,948,700
Strategic Priority Legend
Economic Development ED Public Trust and Accountability PT
Public Safety PS Partnerships PA
Built Environment BE
22 — Section I • Introduction
GENERAL STAFFING - ADJUSTMENTS SUMMARY & COMPARISONS
The following chart summarizes the general government (i.e. tax - supported) and non - general
government position additions, deletions and transfers implemented mid -year 2013 as well as those
included in the 2014 budget. Each of the Non - General Government proposals has an identified
revenue source or other expenditure reduction to support the additional cost.
2014 BUDGETED POSITION ADJUSTMENTS
GG Other
Base & Base &
Fund /Department Description Chg # Benefits Benefits Remarks
Mid -Year 2013 Changes
Human Resources Deputy HR Manager Del (1.00) ($46,200) ($18,000) Mid -Year Change
HR Specialist Del (1.00) (75,800) - Mid -Year Change
Human Resources Asst Add 0.60 15,000 27,800 Mid -Year Change
Police Fleet Technician Add 1.00 61,000 - Police Car Program
Police Lieutenant Add 1.00 124,300 - SRO Contract - Rev $52k
Code Admin Housing Rehab Asst Add 1.00 50,000 - Graffiti Abate /Perm PT - 5 mo.
Information Tech Telephone Technician Add 1.00 68,500 - Public Safety lilt eroperability
Yakima Air Term Add 7.00 - 543,900 Assumption of Airport Ops
Wastewater Laboratory Technician Add 0.20 - 11,000 Reinstatement of position
Total Mid -Year Changes 9.80 196,800 564,700
2014 Budget Changes
Information Tech IT Manager Add 1.00 100,200 43,000 Reinstate IT Position
Electronics Supervisor Trans 0.00 111,500 (111,500) Public Safety to Info Tech
Electronics Tech I Trans 0.00 82,500 (82,500) Public Safety to Info Tech
Electronics Tech II Trans 0.00 99,000 (99,000) Public Safety to Info Tech
293,000 (293,000) Electronics Total
Gang Free Initiative Gang Free Init Mgr Add 1.00 88,600 - New 2014 Position /Lkpt
Municipal Court Municipal Court Clerk Del (1.00) (67,900) - Cost Containment
Police Parking Officer Add 1.00 56,800 - Reinstatement - $40K Rev
Trans 0.00 178,500 (178,500) Grant Fund to Police
Fire Firefighter Add 2.00 163,700 - Reinstatement of Positions
Fire Lieutenant Add 1.00 - 107,900 Increase EMS Funding
Streets Supervising Traf Eng Add 1.00 94,100 - Right -of- Way /Street Cut Init
Traffic Tech II Trans 0.00 - - Streets (GG) to Eng (GG)
Parks & Recreation Admin Associate Add 1.00 59,500 - Reinstatement of position
Community Dev Codes Enf Officer Add 2.00 100,000 - Reinstatement
Transit Department Asst II Add 1.15 - 67,800 2 Permanent PT Positions
Transit Cleaner Add 0.30 - 10,000 Increase Perm PT Hours
Public Works Department Asst II Add 1.00 - 46,100 Reinstatement of position
Engineering Multiple Positions Trans 0.00 173,000 (173,000) Reallocate Engineering Staff
Tota12014 Changes 11.45 $1,239,500 ($369,700)
Total General Government Changes $1,436,300 $195,000 Total Other Gov't Changes
■ A net of 2.6 FTE's were added to General Government mid -year, and 8.0 in the 2014 Budget
for a total of 10.6 FTE's.
A net of 7.2 FTE's were added to other government funds mid -year, and 3.45 in the 2014
Budget for a total of 10.65 FTE's.
Introduction • Section I - 23
In the 2014 budget, management continues to accommodate Federal and State unfunded mandates
and provides critical public safety and other essential services. In an effort to minimize costs and
increase efficiencies, management has increased, decreased, and reorganized personnel resources in
the 2014 budget.
➢ Net addition of 21.25 FTE's and approximately $1.6 million dollars between the 2013
adopted and the 2014 proposed budgets. (This includes the 7.0 Airport personnel)
➢ Since the recession started in late 2008, General Government is operating with a net total
of 18 fewer FTE's in 2014 (from 478 in 2008 to 460 in 2014); a reduction of 3.8 %.
➢ The per capita number of General Government employees has decreased over the past
decade (per every 1,000 population), from 5.8 FTE's in 2004 down to 5.1 FTE's in 2013.
Comparison with other Cities - Payroll
The data utilized in the following comparison was compiled from the State Auditor's Local
Government Comparative Statistics for 2012, and includes comparisons of comparable Washington
State cities with populations between 45,000 and 125,000.
PAYROLL COSTS
Yakima's per capita expenditures on payroll is $503 which $924
$1,000 - is $44 less than the average city per capita of $547 $811 $849
$800 -
$580 $615
$600 $490 $503
$362 $387 $398
$400 - $316 $324
$200 -
$0
Marysville Pasco Kent Kennewick Auburn Kirkland Yakima Renton Richland Bellevue Everett Redmond
PRELIMINARY BUDGET
The 2014 Preliminary Budget broken down by Department, as reflected in the following chart,
provides a clear picture of the resource requirements of each functional area within the City and
how each area compares both to each other and to the total General Government budget of the City
- in dollars and staffing levels.
24 - Section I • Introduction
2014 GENERAL GOVERNMENT PRELIMINARY BUDGET
(By Department)
2014 Dollars in Millions % of
Forecast Total
-1 1 3 5 7 9 11 13 15 17 19 21 23 25
Organizational Unit Budget pIIIIIIIIIIIII Budget
Police $26,057,587 r- 39 4%
Fire 10,167,258 15.4%
Streets & Traffic Oper. 4,786,409 ■ 7.2%
Parks 4,412,448 _.=M 6 7%
Transfers 4,342,275 I I 6.6%
Information Systems 2,912,612 =. 4 4%
Code Administration 1,537,371 lal 2.3%
Financial Services 1,488,836 MI 2.3%
Municipal Court 1,344,118 111 2 0%
• Personnel
Police Pension 1,343,325 ❑ 2.0%
Utility Services 1,316,181 ❑ ■ Non- Personnel 2.0%
Legal 1,314,323 ❑ 2 0%
Engineering 1,109,632 ❑ 1.7%
Indigent Defense 600,500 0 0 9%
Records 563,921 m 0 9%
Purchasing 549,369 0 0.8%
Human Resources 513,151 m 0 8%
Economic Development 486,733 m 0.7%
Planning 458,481 I 0.7%
City Hall Maintenance 407,885 11 0 6%
City Manager 372,684 I 0.6%
Gang Free Initiative 333,105 I 0 5%
City Council 282,075 I 0 4%
Intergovernmental 244,031 I 0.4%
State Examiner 110,000 I 0 2%
Hearings Examiner 31,000 I 0.0%
2% Vacancy Rate (950,000) • (1.4 %)
Total $66,135,312 100 0%
The Police Department consumes 39.4% of the $66.1 million General Government budget, while the
Fire Department consumes another 15.4 %. No other single Department utilizes more than 7.2% of
the total General Government budget.
The Streets & Traffic Department budget (7.2 %) and the Parks and Recreation Department budget
(6.7 %) come in a distant 3rd and 4th place for the utilization of available resources. This has been
the relative utilization of General Government resources for many years, and continues to reflect
the Council's strategic priorities for the coming year.
Introduction • Section I — 25
The preceding chart summarized General Government by functional area, while the following chart
summarizes general government operation by classification of expenditure.
GENERAL GOVERNMENT EXPENDITURES BY CLASSIFICATION
Supplies
$2 7
Salaries & 4 0%
Benefits Other
$46 6 Services &
70 4% Charges
$6 8
104%
Intergov't
Fund Services
$6 8
103%
Capital Outlay
$0 0
01%
Interfund Debt Service
Payments for $10
Service 1 5
$2 2
33%
Projected Ending Cash Balance (Reserve)
General Government resources consist of annual revenues and cash reserves (fund balances). Prudent
fiscal management dictates that adequate reserves be maintained to help ensure the City is prepared to
meet any number of unbudgeted and /or unforeseen circumstances that may arise, without requiring
major disruptions to normal business operations. Reserves are typically utilized for many different
business purposes, including: provide for emergencies; cover temporary cash flow needs; take
advantage of one -time, unanticipated opportunities; provide grant matching funds; cover revenue
shortfalls; and accommodate unforeseen expenditures and other contingencies.
2014 GENERAL GOVERNMENT
PROJECTED REVENUES, EXPENDITURES AND CASH BALANCES
2014 2014 2014 2014
2014 2014 Exp Estimated Estimated End Bal
Projected Proposed as % of Beginning Ending as % of
Revenue Expenditures Diff Rev Balance Balance Exp
General Fund $57,181,843 $56,936,455 $245,388 (0.4 %) $9,245,320 $9,490,708 16.7%
Parks & Recreation 4,357,215 4,412,448 (55,233) 1.3% 678,057 $622,824 14.1%
Street & Traffic Fund 4,596,360 4,786,409 (190,049) 4.1% 1,159,849 $969,800 20.3%
Total General Government $66,135,418 $66,135,312 $106 0.0% $11,083,226 $11,083,332 16.8%
26 — Section I • Introduction
The 2014 General Government preliminary budget is balanced with no use of reserves and the
ending reserve balance is projected to be $11.1 million or 16.8% of the budgeted expenditures,
which is right at the recommended "best practice" of 16.7 %.
Cash reserves are an integral and critical component of responsible fiscal management and business
planning. Standard and Poor's, a national rating agency, included two references to the City's
general fund reserves in explaining the City's credit strengths that influenced their most recent
(December, 2012) reconfirmation of the City's "A +" credit rating. Standard and Poor's stated in
their report that the City has a "track record of very strong general fund balances and good
financial policies and practices, including a minimum general fund balance threshold and the use of
a financial forecasting model ".
The following chart reflects a history of the City's General Government fiscal condition.
GENERAL GOVERNMENT FUNDS
RESERVES USAGE AND BALANCE COMPARISONS
(1) (2) (3) (4) (5)
2013 2013 2014
2012 Amended Year -End Preliminary Variance
Actual Budget Estimate Budget (4 -2)
Beg. Reserve Balance $9,948,220 $9,944,260 $10,908,094 $11,083,227
Revenue 61,580,246 62,668,304 63,071,318 66,135,418
Total Resources $71,528,466 $72,612,564 $73,979,412 $77,218,645 $4,606,080
Expenditure Budget 60,772,182 63,677,219 62,896,186 66,135,312 2,458,093
End. Reserve Balance $10,756,284 $8,935,345 $11,083,227 $11,083,333
% of Annual Expenditures 17.7% 14.0% 17.6% 16.8%
Inc /(Dec) in Reserves f/ Prior Year $808,064 ($1,008,915) $175,132 $106
% of Expenditure Budget 1.3% (1.6 %) 0.3% 0.0%
Revenues
➢ 2014 projected revenues reflect an increase from the 2013 year - end estimate of 4.6 %.
Expenditures
➢ The 2013 year -end expenditures are projected to be $0.8 million less than the Amended
budget.
➢ The 2014 proposed expenditure budget is $3.2 million more than the 2013 year -end estimate
and $2.5 million more than the 2013 authorized expenditure level.
Reserves
➢ A comparison of the 2012 beginning and ending reserve balances reflects a gain of $0.8
million for reserves during that year (from approximately $9.9 to $10.8 million). This good
result was primarily due to the turnaround in the economy and related increase in sales tax.
➢ 2013 year -end projections indicate a minimal gain of reserves during 2013.
Introduction • Section I - 27
The 2014 budgeted year -end reserve level is approx. 16.8 %; this is within the reserve
guidelines, as noted previously, and expenditures virtually equal revenues.
2014 GENERAL GOVERNMENT BUDGET - HIGHLIGHTS
For five years now, staff has been closely monitoring the financial crisis and economic recession
that has gripped our entire nation, our State and our local economy. Staff has prepared, and
updated, 2013 and 2014 revenue projections for the City based on the economic condition of our
region. General Government revenues had been flat for about 4 years when the recession started
(hovering between $57.4 and $57.6 million from 2008 through 2011), but started to turn around in
2012. Much of the revenue increase from 2011 to 2012 actual is the result of City Council's increase
of the Water, Wastewater, Refuse and Stormwater utility tax by 6% - this accounts for about $2
million or half of the $4.0 million increase. This new revenue was earmarked specifically for Public
Safety, and is supporting 12 Police Officers, a Firefighter, and other public safety support. When
the new revenue source is removed, 2012 did experience revenue growth of about $2.0 million or
3.2 %.
Starting in June, 2012, sales tax started to consistently grow each month. By the end of 2012, the
year- over -year growth was $904,000 or 7.2% from 2011. This was spurred by a good crop year and
construction led by the Yakima School district's spending on the high schools. Note: The 2012 total
of $13.5 million was still below the 2008 actuals.
2013 is continuing the growth trend, and through the 9 months ended September 30, the year -to-
date sales tax is 7.1% ahead of 2012. We are estimating 2013 to be about $14.1 million, which is
finally ahead of 2008 levels.
From 2008 through 2012, a total of 41 positions were eliminated in order to balance the
budget within available resources.
The 2013 budget added a net of 1.7 positions, while 2.6 positions were added mid -year 2013
in General Government.
The 2014 budget returns a net of 8.0 positions to the General Government budget, to address
citizen concerns and the City Council's strategic priorities.
Even with the reinstatement, General Government staffing levels are still below 2008 actual
by 28.7 FTE's.
Cost containment and efficiency improvements continue to be a strong focus and an emphasis in
every expenditure decision.
Taxes
Management has included no new taxes in the proposed 2014 Preliminary Budget.
Sales Tax - The General Government budget includes revenue projections that reflect a 5.1%
increase in sales tax revenues from 2013 to 2014. This includes a base growth rate of about
3.0% plus an estimate for a major business moving in to the City limits from a neighboring
jurisdiction. Through the 9 months ended September 30, the year to date sales tax is 7.1%
over the prior year.
28 - Section I • Introduction
➢ Property Tax - The 2014 budget is based on a 1.0% increase in the property tax levy or about
$169,000, as currently allowed by state law, plus a 0.7% increase or $116,000 for new
construction for a total increase of $285,000.
Budget Reductions/Personnel Changes
As revenues are on the road to recovery, Council is evaluating service levels and trying to better
align service levels with citizen requests as measured by a citizen's survey. Strategic initiative have
been approved and included in the budget, and the cost of doing business continues to grow,
budget reductions were still necessary in order to balance the 2013 and 2014 budgets within
available resources and maintain a minimum reserve level.
Comparison with other Cities - Expenditures and Resources
The data utilized in the following comparisons was compiled from the State Auditor's Local
Government Comparative Statistics for 2012, and includes comparisons of comparable Washington
State cities with populations between 45,000 and 125,000.
TOTAL EXPENDITURES
$3,338
$3,500 Yakima's per capita total expenditures are $1,570, which is $564 $2989 $3,111
less than the average city per capita revenue of $2,134 $2,763
$3,000 -
$2,500 - $2,070 $2,139
$1,752 $1,851
$2,000 - $1,570
$1,356 $1,430
$1,500 - $1,235
$1,000 -
$500 -
Pasco Kennewick Marysville Yakima Kent Kirkland Auburn Renton Everett Bellevue Redmond Richland
TOTAL RESOURCES
$4,099
$3,347 $3,356
$3,500 - Yakima's per capita total revenue is $1,548, which is $694
less than the average city per capita of $2,242
$3,000 - $2,596
$2,314
$2,500 $1,930 $2,002
$1,751
$2,000 - $1,548
$1,270 $1,306 $1,389
$1,500
$1,000 -
$500 -
$0 r
Pasco Kennewick Marysville Yakima Kent Kirkland Auburn Renton Everett Redmond Richland Bellevue
Introduction • Section I - 29
These comparisons demonstrate that the City of Yakima has limited revenue /tax base compared
with most cities of its size in the state, and yet provides similar or enhanced services to its citizens.
(For example, of the 12 cities included in the comparison, only Everett has a transit system; there
are no other city -owned irrigation systems; and a few of the cities are members of a Regional Fire
Authority, so have no fire expenditures).
As reflected on the previous pages of this section, management has closely monitored and
maintained a strong fiscal discipline over spending throughout all City departments for years. This
has preserved the City's reserve position - and a stable credit rating - during some very difficult
times. The Five Year Financial Plan contains strategies to continue to balance the budget going
forward, even though projected revenue growth will continue at a rate below inflation.
NON - GENERAL GOVERNMENT FUND SUMMARY
The following chart depicts a summary of resources and expenditures for major operating and
Utility fund operations for 2014, including contingency, operating reserve funds and employee
benefit funds. Although Equipment Rental is included on the table below, it is split into an
operating component and capital component for charting operating vs. capital budgets.
2014 OPERATING AND RESERVE FUNDS
Dollar In Millions
2014
0 2 4 6 8 10 12 14 16 18 20 22 24
Division Projected
Reserves, Risk Mgmt, Emp Benefits $16,227,399
Cap Theatre, Cemetery, Trust Rsys $23,207,508 Reserves, Charges
Wastewater $20,213,432
$21,864,739 Sewer Rates, Operating Reserves
Water/Irrigation $11,086,533
$13,089,319 Water Rates, Irrigation Fees, Reserves
Transit $8,240,033
$9,128,689 Transit Sales Tax, Oper Grants, Fare Box
Refuse $5,670,633
$5,946,765 Refuse Rates
Equipment Rental $3,592,746
$3,945,625 Charges
• Expenditures
Stormwater $2,325,519 ■ Resources
$3,614,369 Stormwater Fees
Airport $1,037,370
$1,081,127 Airport Fees
Special Purpose, Housing, Emer Svs $14,053,196
Public Wks Admm, Cable TV, Misc $17,744,229 Charges, Grants, Taxes, Reserves
Total Expenditures $82,446,861
Total Resources $99,622,370
30 - Section I • Introduction
The following describes the relationship of resources and expenditures for major capital budgets of
the City, including debt service and the capital portion of the Equipment Rental Fund.
2014 CAPITAL AND DEBT SERVICE FUNDS
Dollars in Millions
2014
Division Projected 0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32
i 1
Streets $29,035,797
$31,233,910 Reserves, Grants, 5 Gas Tax, REET, Bonds
Wastewater $14,557,157
$20,880,079 Reserves, Charges, Loans
Airport $11,162,885
$11,198,517 Reserves, Charges
Water /Irrigation $6,504,133
$8,960,542 Reserves, Charges, Loans
Equipment Rental $2,079,054
$5,469,397 Reserves, Charges
Transit $1,749,000
$3,525,799 Reserves, Taxes • Total Expenditures
• Total Resources
Stormwater $790,000
$1,610,613 Reserves, Charges
Sp Purp Cap, Misc GO Debt $8,354,508
$10,480,547 Reserves, Grants, Taxes, Loans
Total Expenditures $74,232,534
Total Resources $93,359,404
Introduction • Section I — 31
Section II - General Government Funds
Year in Review
Revenue Trends
Expenditure Trends
GENERAL GOVERNMENT FUNDS: YEAR IN REVIEW
2013 GENERAL GOVERNMENT
ESTIMATED REVENUES AND EXPENDITURES
General Parks & Rec Sheet
Fund Fund Fund Total
Actual Beginning Balance $9,182,140 $460,791 $1,265,164 $10,908,095
Estimated Revenue 53,494,980 4,346,215 5,230,123 63,071,318
Total Estimated Resources 62,677,120 4,807,006 6,495,287 73,979,413
Less: Estimated Expenditures 53,431,799 4,128,949 5,335,438 62,896,186
Estimated Ending Balance 2012 $9,245,321 $678,057 $1,159,849 $11,083,227
General Government is the term used to describe basic tax supported activities, which are included
in three funds:
General Fund
Services provided include police, fire, code enforcement, planning, legal, municipal court, city
administration, financial services, purchasing, and information technology.
2013 year -end revenue estimate is $53,494,980 - $1,417,300 or 2.7% above the 2012 actual,
and $5,074,589 or 10.5% greater than 2011 actual.
2013 year -end expenditure estimate is $53,431,800 - $622,171 or 1.2% under the authorized,
amended budget of $54,053,971 due primarily to salary savings from position vacancies.
Parks and Recreation Fund
Services include Parks programs and maintenance.
2013 year -end revenue estimate is $4,346,215 - $135,326 or 3.2% above the actual levels for
2012, with the primary increase being additional property tax allocation to adequately fund
parks operations, recreation programs and rebuild reserves in this area.
2013 year -end expenditure estimate is $4,128,949 - just ($3,476) or (0.1 %) under the 2013
amended budget.
Streets Fund
Services include Street and Traffic operations and maintenance.
2013 year -end revenue estimate is $5,230,123 - ($61,555) or (1.2 %)% less than actual levels
for 2012, also related primarily to an adjustment of the property tax allocation to "right -size"
reserve levels.
2013 year -end expenditure estimate is $5,335,438 - ($155,385) or (2.8 %) under the 2013
amended budget -- also due primarily to position vacancies.
The effects of the national economic recession have turned around in 2012 when the City
experienced an increase in Sales Tax for the first time since the recession started in 2008. The
upward trend is continuing in 2013. General Government amended revenue budget is $62,668,274,
General Government Funds • Section II -1
so the year -end estimate of $63,071,318 is about $403,044 or 0.6% more than budgeted, with most of
this increase coming from the final property tax levy being greater than anticipated, and ongoing
savings in the Firefighter's pension fund from the switch of pensioners over age 65 to Medicare and
related supplemental insurances for their 100% health care, which freed up property tax for current
operations. The 2012 actual revenue for these 3 funds was $60,517,810, so the 2013 estimate is
$2,159,310 or 3.6% above the prior year actual. This is due primarily to improved sales tax and
collecting a full year of the utility tax that was increased the beginning of 2012. The annual rate of
inflation as measured by the CPI -U (All Urban Consumers) is 1.5% in August, 2013 for all cities,
and the Seattle index is 1.1 %.
GENERAL GOVERNMENT EXPENDITURE COMPARISON
2013 BUDGET VS. YEAR -END ESTIMATE
2013 2013 Year -End Est.
Amended Year -End as Percent of
Fund /Department Budget Estimate Variance Budget
Police $25,880,899 $25,160,522 $720,377 97.2 %,
Fire 9,909,477 9,789,746 119,731 98.8 %,
Transfers 3,002,275 3,002,275 0 100.0 %,
Technology Services 2,435,038 2,291,558 143,480 94.1 %,
Financial Services 1,478,418 1,463,365 15,053 99.0 %,
Code Administration 1,389,047 1,387,163 1,884 99.9%
Municipal Court 1,384,004 1,345,450 38,554 97.2%
Utility Services 1,324,950 1,320,889 4,061 99.7 %,
Police Pension 1,297,225 1,345,925 (48,700) 103.8 %,
Legal 1,287,573 1,273,983 13,590 98.9 %,
Indigent Defense 833,500 540,500 293,000 64.8 %,
Engineering 686,172 662,004 24,168 96.5 %,
Purchasing 541,244 542,991 (1,747) 100.3 %,
Environmental Planning 534,116 529,622 4,494 99.2%
Records 461,070 455,179 5,891 98.7 %,
Human Resources 459,969 458,094 1,875 99.6%
Economic Development 457,216 454,640 2,576 99.4 %,
City Hall Maintenance 372,923 361,918 11,005 97.0 %,
City Manager 366,555 371,626 (5,071) 101.4 %,
City Council 284,751 275,801 8,950 96.9%
Intergovernmental 261,549 261,049 500 99.8%
State Examiner 110,000 110,000 0 100.0 %,
Hearing Examiner 26,000 27,500 (1,500) 105.8 %,
2 %, Vacancy Rate (730,000) 0 (730,000) 0.0 %,
Total General Fund 54,053,971 53,431,800 622,171 98.8 %,
Parks & Recreation 4,132,425 4,128,949 3,476 99.9 %,
Street & Traffic Operations 5,490,823 5,335,438 155,385 97.2 %,
Total General Government $63,677,219 $62,896,187 $781,032 98.8 %,
2 - Section II • General Government Funds
The preceding table provides a breakdown of the year -end estimate of General Government
budgets for 2013. The largest positive variance (expenditure savings) is in the Police Department
and relates to salary savings from several vacancies. The next is a result of the new indigent
defense rules being postponed until the beginning of 2015. Most of the other positive variances are
also related to position vacancies.
Following is a listing of departments projected to exceed budget:
Police Pension - There are currently 4 pensioners in long -term care facilities, compared to
the historical average of 2 per year.
Purchasing and City Manager - Both have relatively tight budgets and no vacancies, which
made it difficult to absorb the lump sum cash -outs of the labor settlements and /or the new
vacation sell -back program.
Hearing Examiner - This expense is a function of both the volume and complexity of cases
coming before the Hearing Examiner.
Because the legal level of control for budget authority is the fund level, and General Fund is
estimated to be under spent in total, staff is not proposing budget amendments for these overages
at this time.
GENERAL FUND
THREE YEAR COMPARISON
2013
2011 2012 Year -End
Actual Actual Estimate
Beginning Balance $8,275,553 $8,440,130 $9,182,140
Revenues 48,420,391 52,077,680 53,494,980
Total Resources 56,695,944 60,517,810 62,677,120
Expenditures 48,255,814 51,487,699 53,431,799
Ending Balance $8,440,130 $9,030,111 $9,245,321
General Government Funds • Section II — 3
GENERAL GOVERNMENT FUNDS: REVENUE TRENDS
The City receives revenue from many different sources; some revenue is available for any
government purpose and some revenue is restricted in use to a specific fund(s) and /or a specific
purpose. The sources of revenue that are available for use within the General Government Funds
(for general purposes or for a restricted purpose within General Fund, Parks or Street Funds) are
listed in the following charts, along with a three -year comparison of the amount of revenue
received from each source.
For 2014, total General Government revenues are budgeted to be $66,135,918; $3,064,600 or 4.9%
more than the 2013 year -end estimate of $63,071,318. Total beginning cash reserves are estimated to
be $11,083,227, $175,132 or (1.6 %) more than the 2012 estimate of $10,908,094. This fund balance is
about 16.8% of the proposed 2014 budget.
Variances in revenues at this combined level are explained briefly below. A more detailed
explanation follows the chart.
■ Sales Tax - for 2014 is projected to be approximately $720,000 or 5.1% above the 2013
estimate. Sales tax is currently running at 7.1% ahead of 2012 year -to -date through October.
The 2014 estimate assumes a 3% increase in the base plus retail businesses moving into the
City limits from a neighboring jurisdiction.
■ Criminal Justice Sales Tax —is also projected to increase $223,000 or 8.1 %, because of the
both the general growth estimate and a reallocation of this tax from the capital fund because
the new Police take -home program reduced 2014 vehicle purchases in the capital fund.
■ Property Tax - increased $291,000 or 1.9 %. This includes the levy limit increase of 1 %, plus
new construction (about 0.7 %), and a redirection from the Firemen's pension fund in
response to the continued savings from transferring LEOFF 1 medical expense of pensioners
over age 65 to Medicare and purchased Medicare supplemental insurance.
■ Franchise and Utility taxes - increase (2014 over 2013) of $777,500 or 5.3% is largely due to
Cable TV tax of $500,000 being redirected from debt service on the law and justice facility to
General Fund, to help fund the Charter amendment directing the City to spend $2 million
on street improvements. This G.O. bond issue was paid in full in 2013. The $277,500
balance is 1.9% inflationary growth assuming rate adjustments proposed in a few of the
major utilities.
■ Charges for Services - are up by $904,308 or 14.8% primarily because of a revised
methodology to calculate the city service (i.e. administrative) charge to other operating
funds ($360,000); a reallocation of engineering staff back into General Fund, and a
corresponding increase in engineering fees for construction projects ($200,000); and a
proposal to implement a street break fee ($150,000). Program usage is estimated to increase
in a few areas, while other charges are estimated to remain flat.
■ State Shared Revenue - is being increased by $144,685 or 5.2% mainly because the current
state budget reinstated the Liquor Excise Tax which was discontinued for a year starting the
4th quarter of 2012.
The balance of the revenue categories are expected to remain relatively flat.
4 - Section II • General Government Funds
GENERAL GOVERNMENT RESOURCES
THREE YEAR COMPARISON
% of - -2014 vs. 2013 --
2012 2013 Percent 2014 2014 Increase Percent
Source Actual Estimate Change Budget Total (Decrease) Change
General Sales Tax $13,494,843 $14,100,000 4.5% $14,820,000 22.4% $720,000 5.1%
Crim. Justice Sales Tax 2,497,008 2,747,000 10.0% 2,970,000 4.5% 223,000 8.1%
Property Tax 15,334,939 15,608,000 1.8% 15,899,000 24.0% 291,000 1.9%
Franchise & Utility Taxes 14,429,011 14,555,000 0.9% 15,332,500 23.2% 777,500 5.3%
Charges for Services 5,664,903 6,103,481 7.7% 7,007,789 10.6% 904,308 14.8%
State Shared Revenue 3,071,218 2,774,115 (9.7 %) 2,918,800 4.4% 144,685 5.2%
Fines and Forfeitures 1,512,477 1,613,000 6.6% 1,670,000 2.5% 57,000 3.5%
Other Taxes 1,386,797 1,416,900 2.2% 1,420,500 2.1% 3,600 0.3%
Other Revenue 636,158 605,018 (4.9 %) 614,278 0.9% 9,260 1.5%
Transfers from other Funds 1,511,458 1,390,000 (8.0 %) 1,360,000 2.1% (30,000) (2.2 %)
Other Intergovernmental 1,149,151 1,378,804 20.0% 1,353,851 2.0% (24,953) (1.8 %)
Licenses and Permits 892,282 780,000 (12.6 %) 769,200 1.2% (10,800) (1.4 %)
Total Revenue $61,580,245 $63,071,318 2.4% $66,135,918 100.0% $3,064,600 4.9%
Beginning Fund Balance 9,948,220 10,908,094 9.6% 11,083,227 175,132 1.6%
Total Resources $71,528,465 $73,979,412 3.4% $77,219,145 $3,239,732 4.4%
(1) Some Criminal Justice sales tax is allocated to the Law and Justice capital fund (a non - general Governmental fund)
for capital needs
GENERAL GOVERNMENT RESOURCES
2012 YEAR -END ESTIMATE AND 2013 BUDGET FORECAST
Sales Tax /Cnm Justice Sls Tax $17,790,000
Property Tax $15,899,000
Franchise (Sr Utility Taxes $15,332,500
Charges for Services $7,007,789
NM State Shared Revenue $2,918,800
Fmes and Forfeitures $1,670,000
2014 vs 2013 Estimate Increase Total Resources
Other Taxes 1 $1,420,500 Amount $3,239,732
Percent 4 4%
Transfers from Other Funds I $1,360,000
• 2014 Budget
Other Intergovernmental
$1,353,851
• 2013 Y/E Estimate
Licenses and Permits E $769,200
Other Revenue I $614,278
Beginnmg Fund Balance $11,083,227
0 5,000,000 10,000,000 15,000,000 20,000,000
General Government Funds • Section II - 5
In some instances, certain revenues are dedicated for specific purposes (i.e. grant proceeds).
Additionally, certain revenues are generated by operations, so that if the operations are reduced or
eliminated, the revenue would also be reduced or eliminated (i.e. Parks recreation program). The
following chart summarizes net revenue by Department.
NET REVENUE
(Includes Dedicated Revenues)
Net
Department Expenditures Revenue
City Management $6,064,781 $1,958,348
Legal 1,314,323 359,596
Municipal Court 1,344,119 303,857
Finance 8,444,017 2,427,252
Community Development 2,434,736 1,414,466
Engineering 1,109,632 1,012,500
Police 26,057,588 4,745,298
Fire 1,343,325 118,964
Parks & Recreation 4,412,447 1,288,615
Streets 3,041,733 1,508,360
$55,566,701 $15,137,255
This demonstrates that about 27.2% of General Government revenue is either dedicated to or
generated by certain operations. This percentage increased from the 2013 level of 23.2% because of
the increases noted in the Charges for Services category.
GENERAL SALES TAX (SINGLE LARGEST REVENUE SOURCE FOR GENERAL FUND)
2014 revenue projection is $14,820,000 - 5.1% above the 2013 year end estimate.
After 3 years of sales tax being about $1.1 million or 8% below the 2008 high of $13.7 million, sales
tax picked up in 2012. The tax collected in 2012 was $13.5 million, 7.2% greater than 2011. This
trend is continuing- -2013 sales tax is about 7.1% ahead of 2012 year to date through October, so that
the year -end estimate is $14.1 million (finally exceeding 2008). 2014 assumes an increase of 5.1%
over this higher activity, to $14.8 million, assuming 3% growth in the base economy, along with the
move of a major retailer into the City limits from a neighboring jurisdiction. The agricultural sector
of our economy experienced a good year in 2012, which jump - started the growth; and construction
sales tax is on the upswing, with Yakima School District projects slated to continue into 2014, and
Yakima Valley Community College beginning a new building program.
Of the 8.2% sales and use tax collected within the City, the City of Yakima receives only 0.85% (or
about 10.4% of the total) in general Sales Tax revenue. The General Government Funds receive the
full amount of the City's share of general sales tax revenues. (Note: the City also receives 0.3% sales
tax revenues which are restricted for transit purposes and a portion of the 0.4% sales tax revenues
which are restricted for criminal justice purposes. The State receives 6.5% and Yakima County
receives .15% of the remainder - refer to Exhibit II for more information.)
6 - Section II • General Government Funds
The following chart identifies Yakima s sales tax revenues as they relate to the total General Fund
operating revenues (excluding interfund transfer revenues). This revenue source is very sensitive
to economic conditions. As the graph below shows, sales tax receipts have trended downward over
the past 10 years as a percentage of total revenue in the General Fund, as other revenue sources
such as utility tax have generally kept up with inflation, and the City has been successful in
obtaining grants. The decrease in the 2009 through 2011 reflects the deceleration in the sales tax
growth rate, due to economic conditions. Although sales tax turned upward in 2012, the relative
percentage of sales tax to the total remained flat because of the increase in the City utility tax rate.
PERCENT OF SALES TAX
COMPARED TO OPERATING REVENUE
GENERAL FUND
34%
32%
30%
28% ",re'T's-
26% -
24%
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Criminal Justice Sales Tax
0.1% Sales Tax — A special 0.1% Criminal Justice Sales Tax was originally approved by the voters of
Yakima County in the November, 1992, General Election and became effective January 1, 1993. The
State allocates this 0.1% criminal justice sales tax revenue between the City and the County, based
on a predefined formula. This revenue is restricted to providing criminal justice related services
and is allocated based on operating vs. capital needs. This tax revenue is affected by the same
regional economic factors that affect the General Sales Tax revenue.
This tax is expected to generate $1,155,000 for the City in 2014 and is allocated in the City's budget
forecast as noted in the following chart.
0.1% CRIMINAL JUSTICE SALES TAX
2013 2014
2012 Year -End Budget
Fund Actual Estimate Forecast
General Fund $851,436 $1,000,000 $1,090,000
Law and Justice Capital 200,000 125,000 65,000
Total $1,051,436 $1,125,000 $1,155,000
0.3% Sales Tax — Another special sales tax of 0.3% dedicated to Criminal Justice expenditures was
approved by the Yakima County voters in November, 2004, and took effect on April 1st of 2005.
The tax is on sales inside the County only and the proceeds are divided between the County and
Cities on a predefined formula under which the County receives 60% and all cities within the
County share the remaining 40 %. Anticipated revenue is depicted in the table below. (Note:
General Government Funds • Section II - 7
Public Safety Communications and Law and Justice Capital Finds are not part of General
Government.) This tax is expected to generate $2,081,000 in 2014, and is allocated in accordance
with the following chart.
0.3% CRIMINAL JUSTICE SALES TAX
2013 2014
2012 Year -End Budget
Fund Actual Estimate Forecast
General Fund (for Criminal Justice Expenditures) $1,645,572 $1,747,000 $1,880,000
Public Safety Communications 176,230 177,500 175,000
Law and Justice Capital 113,267 96,500 26,000
Total $1,935,069 $2,021,000 $2,081,000
Exhibit III contains a summary of how these funds have been spent over the past 5 years.
PROPERTY TAX
■ Property tax provides approximately 24.0% of all General Government revenue in the 2013
budget. The 2014 budget is based on a 1% increase in the property tax levy, as currently
allowed by state law, or approximately $169,000, plus a conservative 0.7% or $116,000
increase for new construction for a total increase of $285,000 for a total, with Fire pension, of
$17,085,000.
The 2014 request complies with the levy limit restrictions which cap property tax levy increases to
the maximum of 1% or the rate of inflation, whichever is less. (Note: state law defines the rate of
inflation as measured by the Implicit Price Deflator for consumer goods). State law also allows the
City to increase the levy by more than 1% if approved by the majority of voters.
As a point of clarification, the property tax levy restriction limits the change in the dollars levied
(1% would generate about $169,000 for 2014) - it does not limit growth in assessed value. The 1%
limit affects the total dollars levied, while assessed valuation is the mechanism used to allocate the
levy ratably among the property owners.
Since most consumer activity (i.e., wages, equipment, etc.) is more closely tied to the Consumer
Price Index (CPI), and CPI is greater than 1% in almost all years, the future effect of 1% or less
growth in Property Tax is restrictive to the City since Property Tax is one of General Government's
primary revenue sources. This restriction was recognized in the Five -Year Financial Plan, and is a
component in the projected deficits going forward. For sake of comparison, a 1% increase in just
the Yakima Police Patrolman's Association and the International Association of Firefighters
bargaining units together amount to almost $200,000 in 2014.
The following chart and graph depict the 2014 budgeted allocation of the City's property tax
revenues.
8 - Section II • General Government Funds
2013 PROPOSED
GENERAL PROPERTY TAX LEVY - BY FUND
2013 2013 Est.
2012 Amended 2013 2014 vs. 2014
Actual Budget Estimated Budget Budget
General $9,935,939 $10,016,000 $10,125,000 $11,178,000 10.4%
Parks & Recreation 1,683,000 1,457,000 1,812,000 1,649,000 (9.0 %)
Street & Traffic 3,716,000 3,856,000 3,671,000 3,072,000 (16.3 %)
Sub -Total General Government 15,334,939 15,329,000 15,608,000 15,899,000 1.9%
Fire Pension 1,315,000 1,315,000 1,192,000 1,186,000 (0.5 %)
Total $16,649,939 $16,644,000 $16,800,000 $17,085,000 1.7%
2013 PROPOSED
GENERAL PROPERTY TAX LEVY - BY FUNCTION
Fire & Police
Pension
$2,529,325
14 8%
Parks
$1,649,000
9 7%
General Fund
$9,834,675
57.6%
Streets
$3,072,000
18 0%
Note: Property tax is allocated among the General Government funds based on each funds need to
balance to available resources.
FRANCHISE AND UTILITY TAXES
Franchise and utility taxes are collectively the third largest category of General Government
revenues. They comprise 23.2% of 2014 projected General Government revenues and 23.1% of
projected 2014 General Fund Revenues.
➢ 2014 projection is $15,332,500 - $777,500 or 5.3% above the 2013 year -end estimate of
$14,555,000.
General Government Funds • Section II - 9
These revenues are largely a function of weather conditions and utility rates in the Valley. Going
into 2014, the base increase is estimated to be $277,500 or 1.9 %. The balance or $500,000 is from the
re- direction of the Cable TV utility tax from Law and Justice debt service to General Fund (since
this bond issue will be paid in full in 2013), to help support the voted City Charter amendment to
increase funding for street improvements by $2 million. The Franchise and utility taxes combined
are the only major revenue source keeping pace with the rate of inflation, primarily because of rate
increases implemented by utility providers.
The graphs below depict how the City of Yakima compares to other cities of somewhat similar
population relative to (a) sales tax, (b) property tax and (c) utility tax per capita.
These comparisons show that for all 3 of the major tax sources, Yakima is below the state average.
This data was compiled from the State Auditor's Local Government Comparative Statistics for 2012,
and includes comparisons of comparable Washington State cities with population between 45,000
and 125,000.
SALES & USE TAXES
$450
$450 Yakima's per capita sales tax is $248, which is $12 less $377 $391
$400 - than the average city per capita of $260
$350 -
$300 - $248 $248 $252
$225 $235
$250 - $199
$186
$200 $161
$144
$150 -
$100 -
$50 -
$0
Marysville Pasco Kent Richland Kennewick Auburn Yakima Kirkland Renton Redmond Everett Bellevue
Note: Only Yakima and Everett have a sales tax levied for Transit purposes.
PROPERTY TAXES
$450 Yakima's per capita property tax is $170, which is $84 less $404
$375
$400 than the average city per capita of $254 $356
$350 $289
$250 $263 $304
$300
$250 $210
$200 $146 $166 $170
$150 $109
$100
$50 7
$0 f
Pasco Kennewick Kent Yakvna Auburn Marysville Kirkland Richland Bellevue Renton Everett Redmond
10 — Section II • General Government Funds
B & O / UTILITY TAXES
$504
$400 - Yakuma's per capita B &O / utility tax is $174, which is
$44 less than the average city per capita of $218 $323
$350 - $297
$300
$250 ' $204 $205
$170 $172 $174 $182
$200 " $141 $150
$150 " $91
$100 -
$50
$0
Marysville Pasco Kennewick Auburn Kent Yakima Renton Kirkland Richland Redmond Everett Bellevue
Note: Yakima's per capita B &O /Utility taxes were $144 or $64 less than the average City per capita
in 2011. The additional 6% tax on the City utilities was started in 2012, and Yakima remains below
the comparable average.
CHARGES FOR SERVICES
This revenue category consists of revenues from various parks and senior citizen programs, plan
checking fees and street and traffic engineering fees, etc. However, the largest component (more
than half), are fees paid by other City funds for General Fund services (legal, administration,
purchasing, utility billing, etc).
➢ 2014 projection is $7,007,789. This is a 14.8% or $904,308 increase from the 2012 estimate.
Reorganizations in the Engineering and Public Safety Communications divisions resulted in
2 activities currently being paid in other funds moving into General Government funds,
along with their corresponding revenue. Specifically, the allocation of engineering staff to
the City utilities was changed upon review by the new Utilities and Engineering Director,
moving the expense from City utilities into General Fund. This change comes with
additional revenue of about $200,000. Also, the Electronics Function is coming under the
Information Technology Manager moving from the Public Safety Communications fund,
which adds about $103,000 to this revenue category.
A new encroachment fee for street breaks is being proposed, and $150,000 is the estimated
revenue for this new program.
The other major component of this increase is a re- evaluation of the City Service Charge,
including a new methodology to keep the charge more consistent among the various funds.
This category is estimated to increase by about $360,000.
Other changes are related to usage estimates, and are relatively flat.
General Government Funds • Section II —11
STATE SHARED REVENUE
State shared revenues are the fifth largest category of revenues received for General Government
Operations.
■ 2014 projection for all revenues within this category is $2,918,800; an increase of $144,685
from the 2013 year -end estimate of $2,774,115. The State Legislature eliminated the Liquor
Excise Tax for one fiscal year (2012 -2013) in order to help balance the State's budget. This
tax has been reinstated starting the 4th quarter of 2013. Other revenues in this category are
relatively flat.
FINES AND FORFEITURES
These revenues come primarily from criminal fines and noncriminal penalties assessed in the City
of Yakima's Municipal Court, and parking violations. This revenue category is $1,670,000, an
increase of $57,000 for 2014. This is due primarily to the re- instatement of a Parking Enforcement
Officer in the 2013 - parking tickets are estimated to increase about $40,000.
OTHER TAXES
This category includes 500 Business Licenses and 900 Gambling Taxes. The 2014 projection is
$1,420,500, up only 0.3% or $3,600 - virtually the same as the 2013 year -end estimate.
OTHER REVENUES
The balance of revenues supporting the general government funds consists of other financing
sources and miscellaneous revenues, including interest earnings. For 2014, $614,278 is expected to
be generated in this category, a slight increase of $9,260 or 1.5% from the 2013 year end estimate of
$605,018.
TRANSFERS FROM OTHER FUNDS
This represents the transfer of 3.5% of City owned utility taxes from General Fund into the Parks
and Recreation fund. The 2014 projection is $1,360,000, and is derived from utility tax estimates.
OTHER INTERGOVERNMENTAL
This category includes revenue received from other Government units other than the per capita
distributions from the State of Washington. The 2014 budget of $1,353,851 is down ($24,953) or
(1.8 %) from the 2013 estimate largely due to the cancellation of the Yakima Housing Authority
support for a police presence at their facilities, and a one -time planning grant in 2013.
LICENSES AND PERMITS
The 2014 budget is $769,200, (1.4 %) or ($10,800) less than the 2013 year -end estimate of $780,000.
The decrease is primarily because of a spike in right -or -way use permit revenue in 2013, which is
not expected to repeat in 2014. The estimates related to building revenues are estimated to be flat in
response to challenges currently being faced in the building industry.
12 - Section II • General Government Funds
REVENUE TRENDS — OVERVIEW
Total General Government revenue remained flat from 2008 through 2011. Revenues grew by
about $4 million in 2012, about half of that increase resulted from the increased utility tax for Public
Safety. For 2013 the estimated revenue of $63.1 million shows a growth of 2.4% -- a modest increase
resulting from the property tax calculation, a continuation of a rebound in sales tax, and growth in
utility taxes. Projected revenue for 2014 is $66.1 million, a 4.9% increase - mainly due to an upturn
in sales tax, the statutory property tax increase, and new revenue in the General Fund (i.e. the Cable
TV utility tax redirected from debt service; Engineering services; a move of the Electronics function;
and a new street break program).
GENERAL GOVERNMENT RESOURCE COMPARISON - BY FUND
GENERAL GOVERNMENT
THREE YEAR RESOURCE COMPARISON (1)
2013 2013 2014
2012 Year -End vs. 2014 vs.
Actual Estimated 2012 Budgeted 2013
Resources Resources % Change Resources % Change
General Fund $52,077,679 $53,494,980 2.7 %, $57,181,843 6.9 %,
General Fund Beg Balance 8,440,130 9,182,140 8.8 %, 9,245,322 0.7 %,
Total General Fund 60,517,809 62,677,120 3.6 %, 66,427,165 6.0 %,
Parks & Recreation 4,210,889 4,346,215 3.2 %, 4,357,215 0.3 %,
Parks Beg Balance 293,800 460,790 56.8 %, 678,057 47.2 %,
Total Parks 4,504,689 4,807,005 6.7 %, 5,035,272 4.7 %,
Street & Traffic Fund Revenue 5,291,678 5,230,123 (1.2 %) 4,596,360 (12.1%)
Street & Traffic Beg Balance 1,211,290 1,265,164 4.4 %, 1,159,848 (8.3 %)
Total Street & Traffic 6,502,968 6,495,287 (0.1 %) 5,756,208 (11.4 %)
Total Revenue 61,580,247 63,071,318 2.4% 66,135,418 4.9%
Total Beg Bal 9,945,220 10,908,094 9.7 %, 11,083,227 1.6 %,
Total General Government $71,525,467 $73,979,412 3.4 %, $77,218,645 4.4 %,
(1) Resources include both annual revenues and beginning fund cash balances.
General Government Funds • Section II —13
GENERAL GOVERNMENT RESOURCES BY MAJOR CATEGORY
2013 2013 2014 2014
2011 2012 Amended Year -End Forecast % Change
Actual Actual Budget Estimate Budget f/ 2012 Est.
1 2 3 4 5 4 -5
General Fund
Utility Tax $11,499,662 $14,372,866 $14,480,000 $14,500,000 $15,276,500 5.4%
Retail Sales and Use Tax 12,590,563 13,494,843 14,000,000 14,100,000 14,820,000 5.1%
Property Tax 9,595,175 9,935,939 10,016,000 10,125,000 11,178,000 10.4%
Charges for Service 5,343,249 4,676,966 5,195,480 5,063,606 5,806,614 14.7%
Criminal Justice Sales Tax 2,612,126 2,497,008 2,747,000 2,747,000 2,970,000 8.1%
Intergovernmental Revenue 2,553,306 2,862,186 2,670,719 2,751,719 2,882,551 4.8%
Fines and Forfeitures 1,569,946 1,512,477 1,555,000 1,613,000 1,670,000 3.5%
Other Taxes 1,388,253 1,386,334 1,396,500 1,416,500 1,420,500 0.3%
Licenses and Permits 842,272 892,282 731,700 780,000 769,200 (1.4 %)
Miscellaneous Revenue 305,493 350,633 290,850 303,155 332,478 9.7%
Franchise Fees 44,569 56,145 50,000 55,000 56,000 1.8%
Transfers From Other Funds 40,000 40,000 40,000 40,000 0 (100.0 %)
Total Revenue $48,384,614 $52,077,679 $53,173,249 $53,494,980 $57,181,843 6.9%
Beginning Fund Balance 8,040,189 8,440,130 9,182,140 9,182,140 9,245,322 0.7%
Total General Fund $56,424,803 $60,517,809 $62,355,389 $62,677,120 $66,427,165 6.0%
Parks & Recreation Fund
Property Tax $1,725,983 $1,683,000 $1,457,000 $1,812,000 $1,649,000 (9 0 %)
Transfers From Other Funds 1,093,438 1,433,150 1,275,000 1,350,000 1,360,000 0.7%
Charges for Services 907,145 783,038 967,965 821,415 985,415 20.0%
Misc. Revenue/Non- Revenue 246,260 222,686 236,800 215,800 215,800 0.0%
Intergovernmental 85,374 81,847 92,000 92,000 92,000 0.0%
Other Financing Sources 47,910 7,168 55,000 55,000 55,000 0.0%
Total Revenue $4,106,110 $4,210,889 $4,083,765 $4,346,215 $4,357,215 0.3%
Beginning Fund Balance 385,681 296,800 460,790 460,790 678,057 47.2%
Total Parks & Recreation Fund $4,491,791 $4,507,689 $4,544,555 $4,807,005 $5,035,272 4.7%
Street and Traffic Operations Fund
Property Tax $3,524,307 $3,716,000 $3,856,000 $3,671,000 $3,072,000 (16.3 %)
Fuel Tax - Street 1,289,527 1,275,733 1,293,000 1,293,700 1,297,600 0.3%
Charges for Services 215,478 204,899 215,760 218,460 215,760 (1.2 %)
Miscellaneous Revenue 13,661 30,934 19,000 29,063 9,000 (69.0 %)
Other Financing Sources 855 24,738 27,000 2,000 2,000 0.0%
Other Intergovernmental 47,725 603 500 15,500 500 (96.8 %)
County Road Tax /Annexations 217 463 0 400 0 (100.0 %)
Transfers From Other Funds 40,000 38,308 0 0 0 n/a
Total Revenue $5,131,770 $5,291,678 $5,411,260 $5,230,123 $4,596,860 (12.1 %)
Beginning Fund Balance 1,285,030 1,211,290 1,265,164 1,265,164 1,159,848 (8.3 %)
Total Sheet & Traffic Ops. Fund $6,416,800 $6,502,968 $6,676,424 $6,495,287 $5,756,708 (11.4 %)
Total General Government $67,333,394 $71,528,467 $73,576,368 $73,979,412 $77,219,145 4.4%
Total Revenue $57,622,494 $61,580,247 $62,668,274 $63,071,318 $66,135,918 4.9%
Total Beginning Fund Balance 9,710,900 9,948,220 10,908,094 10,908,094 11,083,227 1.6%
Total Resources $67,333,394 $71,528,467 $73,576,368 $73,979,412 $77,219,145 4.4%
14 - Section II • General Government Funds
GENERAL GOVERNMENT FUNDS: EXPENDITURE TRENDS
Criminal justice costs continue to consume an ever increasing share of total General Fund resources.
In order to pay these costs other General Fund programs are necessarily limited /reduced to remain
within available resources. See Exhibit III for more information. The following charts depict the
major effect on the General Fund of the increase in criminal justice costs compared to all other cost
increases from 2004 to 2014.
PERCENTAGE INCREASE OF CRIMINAL JUSTICE COSTS
VS. OTHER GENERAL GOVERNMENT FUNCTIONS AND CPI
2005 BUDGET TO 2014 BUDGET
ILI
Criminal Justice $11,137,03 59.2%
Other $3,295,604 21.1%
Consumer Price
Index 25 5%
Cumulatively, over the past ten years Criminal Justice budgets have increased 59.1 %. By
comparison, all other General Government expenses have increased by only 21.1 %. During this
same ten -year period the Seattle- Tacoma Consumer Price Index increased by 25.5 %. Criminal
justice cost increases are more than double what increases are for other cost categories. When the
increase in population and boundaries are considered over this same time frame, the fact that other
services are still below the rate of inflation demonstrates a real reduction in service /costs per capita.
CRIMINAL JUSTICE FUNDING
With the flattening of revenues, funding available for criminal justice needs is insufficient to offset
increases in Criminal Justice costs. (The following chart depicts the growth in Law and Justice
operations costs for 2012, 2013 estimate and 2014 budget). Even with the negotiated reduction in
outside jail costs, this category of expense still increased by $88,683.
General Government Funds • Section II —15
CRIMINAL JUSTICE EXPENDITURES
THREE YEAR COMPARISON
% Change
2012 2013 2014 2014 from
Description Actual YE Estimate Forecast 2013
Police Operations & Administration $20,495,568 $21,329,962 $22,480,203 5 4%
Outside/Inside Jail Costs 3,974,664 3,830,560 3,577,384 (6.6 %)
District Court/Municipal Court & Probation 1,173,262 1,345,450 1,344,118 (0 1 %)
Prosecution Costs/Indigent Defense 1,224,951 1,439,527 1,526,076 6.0%
Other Related Expenses
Police Pension 1,264,681 1,345,925 1,343,325 (0.2 %)
Emergency Dispatch Transfer 370,000 410,000 305,000 (25.6 %)
Transfer -Law & Justice Center (1) 190,242 177,000 190,000 7.3%
Sub -total 1,824,922 1,932,925 1,838,325 (4.9 %)
Grand Total $28,693,367 $29,878,424 $30,766,107 3.0%
(1) Utility Tax transfer from General Fund.
In the 2 years from 2012 to 2014, criminal justice expenditures are estimated to increase by $2.6
million or 9.0 %, keeping in line with the City Council's strategic priority to improve Public Safety.
In reviewing the following chart and graph, it should be noted that it includes only General Fund
expenditures on criminal justice. Another $0.5 million is budgeted in the "Police Grants" special
revenue fund, which includes a portion of Police and Legal staff working with the DEA on drug
enforcement. The Law and Justice Capital Fund includes a budget of $0.8 million. The Criminal
Justice Expenditures as a Percentage of Total General Fund chart below demonstrates that over half
of General Fund's budget is dedicated to criminal justice. Note: The large jump in the percentage
in 2007 was the result of Council's adoption of the Safe Community Action Plan, which allocated a
one -time gain in the property tax levy as a result of the library annexation of about $650,000 to fund
additional Police officers in a dedicated proactive anticrime unit. This ratio keeps spreading as
Criminal Justice has received increased allocations of resources to address the gang issues facing
the City. In 2012, Council approved an increase of 6.0% in the tax rate for city owned utilities
(Wastewater, Water, Refuse and Stormwater) which added about $2.2 million in 2013 growing to
about $2.4 million in 2014. This additional tax was earmarked to save 6 police officer positions
from elimination and add 6 more officers, along with other public safety related programs. The
2013 budget included a phased proposal to expand the gang unit by 2 officers, and to add an officer
to participate in the Violent Offenders Task Force. Also affecting the 2013 budget is the
Washington Supreme Court decision setting new rules for indigent defense. This one mandate
added $0.2 million in 2013 and is expected to add almost $0.5 million annually by the end of 2015 -
the first year of full implementation.
16 - Section II • General Government Funds
CRIMINAL JUSTICE EXPENDITURES AS A PERCENTAGE OF TOTAL GENERAL FUND
60 0%
56 0%
52.0%
48.0%
44 0% '4
40 0% I I I I I I I I I
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Actual Actual Actual Actual Actual Actual Actual Actual YE Est Budget
Criminal Justice All Other
PERCENT OF PER CAPITA TOTAL REVENUE SPENT ON CRIMINAL JUSTICE IN 2012 (1)
Comparable Cities between 45,000 and 125,000 in Population
30 0% - The percentage of Yakima's total revenue spent on
criminal justice is 21 0 %, which is 4 2% more than the
250% - average percentage of 168% 213% 214% 221/
199%
178%
200% - 159%
138%
144% 149% 150% 154%
150% - 102%
100% -
50 %
00%
Richland Redmond Bellevue Auburn Kent Everett Renton Kirkland Yakima Pasco KennewickMarysvd1e
(1) Data compiled from the State Auditor's Local Government Comparative Statistics
General Government Funds • Section II -17
The following chart depicts General government staffing levels per 1,000 population.
GENERAL GOVERNMENT BUDGETED POSITIONS COMPARISONS (1)
FOR THE LAST TEN YEARS
6.2 - 6 0
60 -
ill
5.8 -
56 - 54
5.4 - 5.2 5 1
51
52
5.0
4.8 -
46
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Number of Employees 462.3 471.1 476.7 497.3 502.8 501.6 489.6 475.1 473.17 471.2
Employees Per Capita 5.8 5.8 5.8 5.9 6.0 5.9 5.4 5.2 5.1 5.1
Square Miles 24.2 25.3 25.9 25.9 27.6 28.7 28.7 28.7 28.7 28.7
Population 79,480 81,470 82,867 83,646 83,731 84,850 91,067 91,630 91,930 92,620
(1) Does not include temporary employees (numbers of employees are stated in full -time equivalents)
The following major events that have had significant effect on General Government staffing levels:
➢ City population has increased 13,140 from 2004 to 2013, or 16.5%
➢ In 2005, 12.75 FTE's in Police, Courts and legal were added as a result of voter approval of a
0.3% increase in the sales tax rate for Criminal Justice.
➢ In 2007, 9 positions were added in the Police Department as part of the Safe Community
Action Plan (SCAP), paid for by the increase in property tax realized when the City annexed
to the Rural Library District, 4 positions were added because of Public Safety grants, and 7
were added for 2 annexation areas.
➢ In 2010, 7 Police Officers were added, funded by a COPS hiring grant, and 2 positions were
added for the purchasing consolidation with Yakima County.
➢ In 2012, 6 Police Officers were added, funded by an increase in the City -owned utilities.
It should be noted that a net of 8.87 new FTE positions have been added since 2004, or 1.9% over the
past 10 years; compared to the 16.5% increase in population during the same time period. Most of
these additions were either in response to criminal justice issues, annexations, or both.
This comparison also highlights the large reductions necessitated by the economic downturn
starting in 2009 and continuing into 2013. Since 2009, staffing levels have been reduced by another
30.4 net positions. This reduced the ratio to 5.1 employees per 1,000 population in 2012 and 2013 -
the lowest rate in well over two decades.
18 - Section II • General Government Funds
GENERAL GOVERNMENT EXPENDITURE SUMMARY
The following chart illustrates that the total 2014 General Government budget is $66,135,312,
$2,458,093or 3.9% more than the 2013 amended budget of $63,677,219.
2013 - 2014 GENERAL GOVERNMENT BUDGET
2013 2013 2014 2014 vs. 2013
Amended Est. Year -End Projected Preliminary Amended
Budget Expenditures Budget Dollars Percent
General $54,053,971 $53,431,799 $56,936,455 $2,882,484 5.3%
Parks & Recreation 4,132,425 4,128,949 4,412,448 280,023 6.8%
Street & Traffic Operations 5,490,823 5,335,438 4,786,409 (704,414) (12.8 %)
Total General Government $63,677,219 $62,896,186 $66,135,312 $2,458,093 3.9%
General Government Funds • Section II -19
Section III - Other Funds
OTHER FUNDS
2013 year -end estimates for the City's Other Operating and Enterprise Funds are summarized below:
BUDGET STATUS
2013 2013 2013 2013
Amended Est. Actual Estimated Est. Ending
Budget Expenditures Variance Resources Balance
Economic Development $277,332 $277,332 $0 $504,636 $227,304
Neighborhood Development (Housing) 2,564,724 2,415,534 149,190 2,641,367 225,833
Community Relations 922,855 918,800 4,055 1,454,472 535,672
Cemetery 267,327 267,287 40 307,169 39,882
Emergency Services 1,189,923 1,189,923 0 1,324,008 134,085
Public Safety Communications 3,520,154 3,441,871 78,283 3,759,600 317,729
Police Grants 708,078 835,439 (127,361) 1,264,318 428,879
Downtown Improvement District 287,522 287,522 0 318,826 31,304
Trolley (Yakima Interurban Lines) 77,246 24,568 52,678 32,604 8,036
Front Street Business Improvement 5,000 5,000 0 11,785 6,785
Tourist Promotion 1,460,299 1,460,299 0 1,894,858 434,559
Capitol Theatre 348,300 344,730 3,570 402,910 58,180
Public Facilities Dist Rev Cony Ctr 684,000 684,000 0 929,335 245,335
Tourist Promotion Area 667,000 667,000 0 745,685 78,685
Public Facilities Dist Rev Cap Theatre 517,000 517,000 0 613,837 96,837
Airport Operating 1,081,788 997,451 84,337 1,084,953 87,502
Stormwater Operating 2,087,622 2,080,778 6,844 3,530,147 1,449,369
Transit 8,042,762 7,995,954 46,808 9,463,726 1,467,772
Refuse 5,654,199 5,652,596 1,603 6,013,361 360,765
Wastewater 19,525,178 19,422,519 102,659 21,328,901 1,906,382
Water 8,546,883 8,273,043 273,840 10,679,620 2,406,577
Irrigation 1,509,163 1,509,073 90 2,428,215 919,142
Equipment Rental 5,978,336 5,975,598 2,738 10,070,909 4,095,311
Environmental 192,950 192,950 0 588,798 395,848
Public Works Admin. 1,202,645 1,197,546 5,099 1,621,656 424,110
$67,318,286 $66,633,813 $684,473 $83,015,696 $16,381,883
All Operating and Enterprise Funds are anticipated to end 2013 with positive fund balances. This
analysis includes appropriations approved by Council through October. The Police Grants fund is
estimated to exceed its current budget. The expenditures were budgeted based on conservative
revenue estimates relating to DEA forfeitures. The revenue is exceeding estimates, and we are
preparing an appropriation for Council for additional staffing /overtime and equipment to be
supported by this fund. All other operating funds are anticipating actual expenditures within
authorized levels.
2014 projections for Other Operating and Enterprise Funds expenditures and resources are reflected
in the following chart. (Resources include the beginning fund balance plus current year revenue, to
arrive at a total available to spend.)
Other Funds • Section III -1
PROPOSED 2014 BUDGET
2014 2014 2014
Projected Projected Projected
Fund Resources Expense Balance
Economic Development $485,304 $456,622 $28,682
Neighborhood Development (Housing) 1,989,996 1,766,938 223,058
Community Relations 1,087,272 601,850 485,422
Cemetery 304,832 278,900 25,932
Emergency Services 1,471,111 1,339,282 131,829
Public Safety Communications 3,337,666 3,218,239 119,427
Police Grants 912,879 469,024 443,855
Downtown Improvement District 266,474 244,358 22,116
Trolley 62,962 57,809 5,153
Front Street Business Improvement Area 10,120 9,000 1,120
Tourist Promotion 1,982,809 1,483,667 499,142
Capitol Theatre 355,430 342,020 13,410
Public Facilities Dist Rev Cony Ctr 1,001,085 645,000 356,085
Tourist Promotion Area 765,685 687,000 78,685
Public Facilities Dist Capitol Theatre 672,337 531,000 141,337
Airport Operating 1,081,127 1,037,370 43,757
Stormwater Operating 3,614,369 2,325,519 1,288,850
Transit 9,128,689 8,240,033 888,656
Refuse 5,946,765 5,670,633 276,132
Wastewater 21,864,739 20,213,432 1,651,307
Water 10,404,077 9,022,649 1,381,428
Irrigation 2,685,242 2,063,884 621,358
Equipment Rental 9,415,022 5,671,800 3,743,222
Environmental 545,848 192,950 352,898
Public Works Administration 1,539,548 1,168,866 370,682
Total Other Operating and Enterprise Funds $80,931,388 $67,737,845 $13,193,543
See Exhibit I for additional detail of Other Operating and Enterprise Funds, including a 3 -year
history of expenses, and a fund balance analysis, including the estimated beginning and ending
fund balances, and projected revenue.
The 2014 Operating and Reserve Funds chart at the end of Section I depicts a summary of resources and
expenditures for major operating and Utility fund operations for 2014, including contingency, operating
reserve funds and employee benefit funds. Although Equipment Rental is included on the table, it is
split into an operating component and capital component for charting operating vs. capital budgets.
OPERATING FUNDS
For more information on strategic initiatives that affect these funds see the Strategic Initiatives
section.
The Economic Development Fund
This fund reflects resources of $485,304 and expenditures of $456,622 for 2014. These funds are planned
to be used to spur economic development. Expenditures include an allocation of the Code Enforcement
program that is eligible to be funded by the Community Development Block Grant (CDBG)
2 - Section III • Other Funds
($172,800); the continuation of Federal legislative funding efforts ($72,000); the City's partnership with
New Vision ($33,000); and the next steps in the downtown revitalization initiative ($170,000).
The Community Development Fund (Office of Neighborhood Development Services - ONDS)
This fund contains programs funded by Housing and Urban Development (HUD), including the
Community Development Block Grant (CDBG) and Home ownership (HOME) grants. Expenditures
are budgeted at $1,766,938 and are subject to the public hearing process. After reductions in Budget
allocations at the Federal level in both 2012 and 2013, the 2014 allocation has stabilized. Because of the
programmatic nature of the Community Development budget, along with differences in reporting
time frame for Federal programs, the City budget is annually adjusted to reflect the final outcome of
prior year programs. The 2014 ending balance is projected to be $223,058.
The Community Relations Fund
The Community Relations fund expects resources of $1,087,272 for 2014. Expenditures are
estimated to be $601,850, leaving the balance estimated at $485,422 for year -end, earmarked
primarily for capital expenditure on production equipment /cable TV facilities.
Cemetery Fund
Resources within this fund for 2014 are projected at $304,832. Expenditures are estimated to be
$278,900, and the estimated ending balance is projected at $25,932. The Cemetery Fund is
depending on a $120,000 operational subsidy from the Parks and Recreation Fund, which is a
$30,000 increase from the 2013 budget of $90,000, as operating revenue is not keeping pace with
operating costs. Parks management continues to monitor this situation.
The Emergency Services Fund
Resources in this fund reflect revenues of $1,471,111 and expenditures of $1,339,282 related to the
provision of Emergency Medical Services, and are supported by an allocation of the county -wide
special EMS Property Tax Levy. The City's allocation increased by $120,000 from 2013 —the
strategic initiative to add a new Training Lieutenant is included in this fund. The 2014 ending
balance is projected to be $131,829.
The Public Safety Communications Fund
This fund expects resources of $3,337,666 and expenditures of $3,218,239 for 2014, leaving a balance
of $119,427 at year -end. This fund accounts for 9 -1 -1 Call takers, supported by Yakima County 9 -1-
1 resources in the amount of $1,786,262. General Fund expenditures include a transfer of $610,000
for dispatch. Two strategic initiatives affect this fund -1) a reorganization that splits the combined
Information Technology /Communications manager back into 2 separate positions, and moves the
electronics operation (both revenues and expenditures) into IT; and 2) the beginning of a move to a
larger facility -- $195,000 is new in the 2014 budget as an estimate for the 1st year of debt service for
remodeling /equipping a new public safety communications center.
Police Grants
This fund accounts for the Federal / State forfeited narcotics and the COPS Hiring Recovery
Program (CHRP), both of which have stringent reporting requirements. CHRP was a three year
program grant started in 2010 with a total grant of $1.5 million and was being used to fund seven
police officers. As grant funding was depleted, the officers were absorbed back into General Fund.
The program is complete the end of 2013, so in 2014 the balance of staff (about $295,000) was
Other Funds • Section III-3
redirected into General Fund. Resources for 2014 are estimated to be $912,879 and expenditures are
budgeted at $469,024, leaving an ending balance of $443,855.
Downtown Yakima Business Improvement District (DYBID) Fund
Resources in this fund are projected to be $266,474, while expenditures are projected at $244,358.
The ending balance for 2014 is projected at $22,116. Much of the 2014 budget is targeted toward
maintaining the recent downtown revitalization efforts.
The Trolley Fund
This fund projects resources of $62,962 and expenditures of $57,809 for a minimal maintenance
program in 2014. The year -end balance is projected at $5,153.
The Front Street Business Improvement Area Fund
This fund projects resources of $10,120 and expenditures of $9,000 - leaving an ending balance of
$1,120 for 2014.
The Tourism Promotion/Yakima Convention Center Fund
This fund's budget anticipates resources of $1,982,809 (this includes a transfer of $100,000 from the
Public Facility District) and expenditures of $1,483,667, and thus is expected to end 2014 with a
balance of $499,142. The budget includes an increase the Center's management fee from $694,300 to
$708,200 or $13,900, and an increase in the maintenance of the Visitors Information Center from
$40,000 to $60,000 or $20,000 (See strategic initiative section).
The Capitol Theatre Fund
This fund is expected to have resources of $355,430 and expenditures of $342,020, leaving an
estimated ending balance of $13,410. The Capitol Theatre Committee management fee is
unchanged at $232,000.
The Public Facilities District - Convention Center Fund
This fund includes resources estimated to be $1,001,085 for 2014. Expenditures are estimated to be
$645,000. Of this amount $455,000 for debt service on the Convention Center bonds issued in 2002
and $100,000 is for supplemental support of Convention Center operations, while $70,000 is for
Convention Center Capital Fund. This leaves a fund balance of $356,085 at the end of 2014.
The Tourist Promotion Area
This fund accounts for a self - assessment imposed by the lodging industry to promote tourism.
Resources are estimated to be $765,685, with expenditures programmed at $687,000, leaving a
balance at the end of 2014 of $78,685.
The Public Facilities District - Capitol Theatre
This fund includes resources estimated to be $672,337 for 2014. Expenditures are estimated to be
$531,000. Of this amount $462,000 is designated for debt service on the Capitol Expansion bond
issued in 2009 and $57,000 for supplemental support for Capitol Theatre operations. It should be
noted that the Federal Government reduced the amount it is providing for the Buy America Bond
program, so the City's contribution to debt service had to go up by almost $10,000. This leaves a
fund balance of $141,337 at the end of 2014.
4 - Section III • Other Funds
Airport Operating Fund
This is a new fund to account for operations at the Yakima Air Terminal, after the joint venture with
Yakima County was dissolved in February, 2013. Resources are estimated to be $1,081,127, with
expenditures programmed at $1,037,370, leaving a balance at the end of 2014 of $43,757 After
transferring to City ownership, cost containment measures have been taken to stabilize the financial
position. The budget includes a strategic initiative to start upgrades at the terminal including
carpeting and paint.
Stormwater Operating Fund
Expenditures in this fund are estimated to be $2,325,519 and resources are projected to be $3,614,369 for
2014. The budget is developed with the annual current rate of $43 per equivalent residential unit which
is unchanged from 2013. An ending balance of $1,288,850 is currently projected for 2014. The
expenditure budget includes a $200,000 transfer to the streets fund to support the street sweeping
program and $50,000 to the General Fund for code compliance support relating to stormwater drainage
systems. There is also $70,000 budgeted for a rate study (see Strategic Initiative section).
Transit Fund
Expenditures in this fund are estimated to be $8,240,033 and resources are projected to be $9,128,689
for 2014. Total Transit sales taxes for 2014 are forecast to be $4,900,000 with the $4.0 million
allocated to operations and $0.9 million to capital. This fund also includes an operating grant of
$2,200,000. Strategic initiatives include adding 2 permanent part -time Department Assistant II's,
and increasing the hours of the Transit Cleaners, to enhance customer service. An ending balance of
$888,656 is currently projected for 2014.
Refuse Fund
The expenditure budget in this fund for 2014 is $5,946,765. Total resources are estimated to be
$5,670,633, and an ending balance is currently projected at $276,132. No rate adjustments are
proposed for 2014. A recycling pilot program is included in this budget with a preliminary estimate
of $40,000 (see the strategic initiative section). Additional revenue is being provided by new
customers as the City begins service in a previously annexed area.
Wastewater Fund
Resources for this fund in 2014 are expected to total $21,864,739. Expenditures are budgeted at
$20,213,432 and the 2014 year -end balance is currently projected to be $1,651,307. Transfers of
about $2.5 million to Wastewater Construction funds and $2.6 million to provide for Wastewater
Bond redemption and repayments of Public Works Trust Fund Loans are currently programmed in
this budget. The proposed 2014 Sewer budget includes continued implementation of the Sewer
Comprehensive Plan and the Wastewater Facilities Plan. Revenues are estimated to increase by
5.1% in accordance with the third year of a three year rate structure approved by Council in 2011.
Water Fund
Resources of $10,404,077 are projected for 2014 in this fund. Expenditures are estimated to be
$9,022,649 leaving $1,381,428 at the end of 2014. These costs include $750,000 transfer to the Capital
Fund, and about $1,100,000 to provide for Water Bond Debt Service, and repayments of Water
Public Works Trust Fund Loans. No rate adjustments are included in the 2014 budget. A rate
study is about complete, and the results will be presented to Council at a future date.
Other Funds • Section III-5
Irrigation Fund
Resources for 2014 are projected to be $2,685,242 in this fund, and expenditures are estimated to be
$2,063,884. The 2014 ending fund balance is projected to be $621,358. The 2014 projected resources
include the rate adjustment of 5.5% rate increase (2011 approved policy issue - 5.5% annual rate
increase from 2011 through 2013.)
The Equipment Rental Fund
The budget for this fund in 2014 is $5,671,800 of which $3.9 million is the maintenance and
operations budget, and $1.7 million is the Equipment Replacement budget. Resources are expected
to be $9,415,022 while the ending fund balance for 2014 is expected to be $3,743,222, most of which
represents capital equipment replacement reserves.
The Environmental Fund
This fund was created to provide for cleanup of environmental hazards. Funding for the program
is from a surcharge on vehicle fuel sales in the Equipment Rental Fund. For 2014, $545,848 in
resources is expected to be available and $192,950 is budgeted primarily as a contingency. A year-
end balance of $352,898 is projected.
Public Works Administration Fund
Expenditures for 2014 are expected to be $1,168,866 for this fund. Resources for 2014 are expected
to be $1,539,548 generated from operating funds located in the Public Works complex, resulting in a
year -end balance of $370,682.
RESERVE FUNDS - EMPLOYEE BENEFIT RESERVES
The Unemployment Compensation Reserve Fund
This self insured fund is estimated to end 2014 with a balance of $267,577. Resources are projected
to be $554,159 and expenditures for claims and other related expenses are estimated at $286,582,
which includes a contingency, as the 2013 year end estimate is only $158,789. Rates are unchanged
for 2014.
Employees Health Benefit Reserve Fund
Expenditures in this fund for 2014 are projected to be $9,867,703, while resources are $12,937,613,
leaving an ending balance projected to be $3,069,910, which exceeds the State's minimum reserve
and contingency requirements by about $700,000. The 2014 budget includes a rate roll -back of an
average of 15% for medical while dental was flat, based on an 18 month rolling average of claims
history ending in June 2013. Recent plan design changes combined with a better than average
"large claim" year and the opening of our own medical clinic all combined to produce this
reduction in expenditures and the resulting reduction in base rates. The insurance board continues
to monitor the plan and review potential cost containment measures, with a goal of reducing the
magnitude of future annual premium increases. The next major proposal for reduced costs is to
begin an incentivized wellness program, which is being introduced this fall (2013).
The Workers Compensation Reserve Fund
This fund is estimating a year -end balance of $802,634, the result of resources totaling $2,061,264 and
expenditures of $1,258,630. Ongoing efforts in claim management and safety training are in place
to slowdown the number of claims /costs. Rates are unchanged for 2014.
6 - Section III • Other Funds
Wellness/Employee Assistance Program (EAP) Fund
Projected total resources for 2014 are $356,238 in this fund, and expenditures are $171,600 with a
projected year -end balance of $184,638.
The Firemen's Relief and Pension Fund
This fund is projecting resources of $2,181,849 and expenditures of $1,259,308, leaving an estimated
2014 year -end balance of $922,541.
The Fire Pension property tax allocation for 2014 of $1,186,000 is slightly below the 2013 estimate of
$1,192,000. The City is mandated to allocate property tax to fund pension and LEOFF I medical and
long -term care requirements.
OPERATING RESERVES
Risk Management Reserve
For 2014, based on personnel costs, claims experience and other insurance /professional services
costs, on -going expenditures are estimated to be $3,299,649 Risk Management Fund departmental
contributions totaling $3,180,000 are programmed from City departments, an increase of 7.0 % for
most operating divisions. The increase helps pay for liability and other insurance coverage and
increased claims costs, and to meet reserve requirements. These charges, along with interest
earnings of $100,000 and estimated recoveries combine for projected 2014 revenues of $3,360,000 for
normal operations.
In addition to on -going operations, the 2014 revenues and expenditures include $70,000 for
anticipated possible mitigation of contamination from the former City landfill at the sawmill site.
At this time, mitigation expenses are anticipated to be reimbursed by corresponding insurance
recovery revenue.
Therefore, total resources and expenditures of the Risk Management Reserve Fund for 2014 are
expected to be $4,304,666 and $3,299,649 respectively. The year -end 2014 reserve balance is estimated to
be $1,005,017. These reserve levels are still considered marginal in comparison to the existing liability
for incurred claims. The reserve balance in this fund will continue to be monitored for adequacy.
Capitol Theatre Reserve
The Capitol Theatre Reserve projects revenues for 2014 of $500. The annual transfer of $71,927 to the
Capitol Theatre is being changed from the Operating Fund to the Construction fund for both the
balance of 2013 and 2014 so much needed safety /ADA improvements can be made. The projected 2014
ending balance is $109,068, and will be totally depleted after 1 more year. The City is pursuing funding
alternatives for capital improvements with the Capitol Theatre Committee.
General Fund Cash Flow Reserve
General Fund cash flow reserves for 2014 are estimated at $9,490,707. This source is a contingency
for Council policy changes, results of negotiations for unsettled bargaining units, other unknown
expenses and potential revenue shortfalls.
Other Funds • Section III - 7
In summation, the City's 2014 General Reserve position is estimated to be as shown in the following
chart.
2014 GENERAL RESERVE POSITION
2012 2013 2014
Fund Actual Estimated Projected
General Fund Cash Flow $9,182,140 $9,245,320 $9,490,707
Capitol Theatre Reserve 251,922 180,495 109,068
Risk Management Reserve 1,030,191 944,666 1,005,017
Total $10,464,253 $10,370,481 $10,604,792
The economic downturn has put pressure on the general reserves of the City. Because these
reserves are at minimum levels, they will be scrutinized for negative trends and adequacy as the
City moves forward.
Exhibit I contains additional detail of funds categorized as Contingency /Operating and Employee
Benefit Reserves.
CAPITAL IMPROVEMENT FUNDS
For 2013, a number of capital improvements were programmed for an amended capital budget of
$64.2 million. However, capital improvement expenditures for 2013 were estimated to be $52.2
million, a spending level approximately $12.0 million below budgeted levels. These projects are
rebudgeted in 2014 along with additional capital improvements. Examples of the projects being
rebudgeted include the Yakima Sawmill Redevelopment Area; Railroad Grade Separation; 64th
Avenue Nob Hill to Tieton reconstruction; Congdon wastewater main; and Biogas Enhancements;
Biosolids Improvement. (See Exhibit I for a summary of the status of the capital funds.)
The 2014 Capital and Debt Service Funds chart at the end of Section I depicts a summary of the
relationship of resources and expenditures for major capital budgets of the City, including debt
service and the capital portion of the Equipment Rental Fund.
For 2014, Capital Fund expenditures of $64,889,845 are estimated as follows, inclusive of carryover
projects from 2013.
Street /Other Infrastructure Improvement Projects
Total projects of $28,060,126 million (including carryover projects and Debt Service).
Street Improvements per City Charter amendment (General Obligation Bond) - $16,500,000
64th Avenue , Nob Hill to Tieton Street Improvement (carryover, Federal grant) - $925,000
. Lincoln Corridor Study (Federal Grant) - $415,000
. 1St /Main Nob Hill Corridor (Federal Grant) - $375,000
City Streets Project Improvement (General Obligation bond, carryover from 2013) - $940,000
Railroad Grade Separation (State and Federal grants; Public Works Trust Fund loan) -
$4,898,000
North 1st St. Revitalization Phase I (Federal Grant) - $1,200,000
Debt Service /Transfers - $1,309,876
8 - Section III • Other Funds
■ Other miscellaneous projects - $1,497,250. These projects include:
• Project Contingency (for project over runs or emergency repairs) - $105,000
• Citywide Safety Improvements (Federal Grant) - $275,000
• Citywide Street & Right -of -Way Project - $225,000
• River Road Project 16th Ave /Fruitvale - $218,850
• 64th & Tieton Signal - $140,000
Arterial Street Gas tax and the Real Estate Excise Taxes are the primary local revenue sources for
street projects. These revenues are used to match state and federal grants when possible to
maximize funding for projects.
Irrigation Improvement Fund
Total 2014 projects - $1,300,000 and Debt Service - $321,504, for a total of $1,621,504.
Fruitvale Canal Diversion System - $100,000
■ West Yakima Avenue (18th to 28th) - $1,000,000
■ 2014 Main and Pump Refurbish - $200,000
Domestic Water Improvement Fund
Total 2014 projects - $4,320,000.
Design Water Treatment Lagoons (carryover) - $2,100,000 (funded by Public Works Trust
Fund Loan)
Automated Meter Reading System (carryover) - $500,000
Modifications to River at WTP Intake - $1,500,000
2014 Water Main Replacement - $150,000
■ Other water capital projects - $70,000
Fire Capital Fund
Total 2014 projects - $296,459.
■ New brush truck - $130,000
■ Miscellaneous equipment and supplies - $96,500
Lease payments - $69,959
Wastewater Capital Expenditures
Facility projects and other sewer improvements, including sewer line extension rehabilitation and
other costs, total $12,975,000.
Congdon Sewer Main (carry over) - $100,000
■ Wastewater System Evaluation - $100,000
■ Dry Storage Building - $100,000
■ New Industrial Waste Line (Force main Boise site) - $800,000
Toscana Development Castlevale /Fechter (carry over) - $300,000
Beech Street Interceptor /Phase III - $2,000,000
National Pollutant Discharge Elimination System (NPDES) and Total Maximum Daily Load
(TMDL) Issues - $1,800,000
■ Biogas Enhancements (carry over) - $565,000
Other Funds • Section III - 9
Biosolids Improvements (carry over /additional project cost) - $4,700,000
Biosolids Screen Project - $1,100,000
Other Wastewater miscellaneous capital needs (including a $800,000 contingency) - $1,410,000
Stormwater Capital Fund
Total 2014 budget - $790,000.
Contingency for Capital Facilities projects - $65,000
Underground Injection Control (UIC) Retrofit project (carry over) - $125,000 (state grant)
Drainage Basin Project - $600,000
Airport Capital Fund
Total 2014 budget - $11,162,885.
Taxiway Construction (Federal grant /interfund loan) - $11,162,885
Transit Capital
The 2014 budget of $1,749,000 is for miscellaneous capital needs and vehicle replacement.
3 Heavy Duty Buses - $1,300,000
Replace Dial -a -ride vehicles - $392,000
Other capital needs - $57,000
Parks Improvements Projects
The 2014 budget of $100,000 is for miscellaneous capital needs.
Yakima Revenue Development Area
The 2014 budget of $2,473,235 is for the Yakima Sawmill Redevelopment Area project.
Other Capital Projects/Transfers
Law and Justice Capital fund - $750,636 for the Police Station / Legal Center related
equipment and projects including:
• Vehicle replacement and accessories - $416,000
• Automated License Plate Reader - $135,000
• Miller Park Facility improvements - $100,000
• Technology and Equipment to enhance crime reduction - $51,636 (Federal grant)
• Other miscellaneous projects and equipment - $48,000
Convention Center Capital Improvements - $360,000 is programmed for ongoing capital
needs of the Center for 2014.
CBD Capital Improvement - $91,000 for maintenance contract and other services.
LID Construction
There are no local improvement district projects budgeted in 2014.
Capital Improvement Fund Summary
Overall, Capital Fund expenditures in the 2014 Budget Forecast of $64.9 million are $0.7 million
above the 2013 Amended budget of $64.2 million. Many areas are in the midst of capital programs
10 — Section III • Other Funds
such as the utilities and streets (including the major upgrades to the wastewater facility, which is
under construction in 2013). In some instances, the "next" phase as included in the 2014 budget is
less than 2013, such as automated meter reading and the wastewater industrial waste line.
Ongoing pressures on revenues available for General Government Capital funds have pushed
spending down in Parks, Fire and Law & Justice. The Fire Department has requested an ongoing
source of funding for apparatus replacement. Ongoing resources for capital needs have been
diminishing, and this topic will likely remain in the forefront of future budget discussions.
Although major capital projects in the wastewater utility and the 2nd railroad underpass on Martin
Luther King Jr. Blvd. are finishing up, new capital programs tied to acquisition of the Airport and
the passage of a City Charter amendment to invest $2 million annually in street improvements,
along with the purchase and equipping of 74 Police vehicles, leave the 2014 budget slightly more
than the 2013 amended budget.
GRANTS
The City has been successful in obtaining grants for many different purposes. The following table
identifies all of the grants /interlocal revenues budgeted to be received in 2014. Citywide, grants
add to over $33.5 million, which is about 16.0% of total revenues.
This grant summary is included in the Capital Improvement section because Capital grants make
up over half of the total grants awarded. Grants make up about 28.9% of revenue in the Capital
Improvement funds.
2014 GRANTS
(Federal, State & Interlocal Subsidies)
Amount
Department Description of Grant
Federal /State Capital Grants
Law & Justice Capital JAG Grant 41,636
Arterial Streets Fair Ave /Nob Hill Intersection Rebuild 25,900
Arterial Streets 64th Ave - Nob Hill to Tie ton 725,000
Arterial Streets N. 1st Street Revitalization Phase 1 1,038,000
Arterial Streets Citywide Safety Improvements 275,000
Arterial Streets Lincoln Corridor Safety Project 415,000
Arterial Streets 1st /Main Nobhill Corridor Safety Project 375,000
Trolley Trolley Enhancement Project 53,308
Cum Res for Capital Improvement Federal Highway Admin 2,000,000
Cum Res for Capital Improvement Transportation Improvement Board 900,000
Transit Capital State Grant D/R Vehicles 313,507
Airport Capital FAA Alpha Taxiway Construction 10,054,597
Wastewater Capital Recreation & Conservation 1,300,000
Wastewater Capital Department of Ecology 249,900
Stormwater Capital UIC Project DOE Grant G1100273 94,000
Total Federal /State Capital Grants $17,860,848
Other Funds • Section III —11
Amount
Department Description of Grant
Federal /State Operating Grants - General Government
Police Traffic Safety Commission $45,000
Police OPD Public Defense Grant 150,000
Parks and Recreation ALTC Reimbursement SCSA State Res 30,900
Parks and Recreation Senior Center - Foot care 30,200
Parks and Recreation State Day Care CFDA 93.044 10,000
Parks and Recreation State Transportation CFDA 93 043 500
Municipal Court Judicial Salary Contribution 45,000
General Fund Property Taxes 6,330
Total Fe deral/State Operating Grants - General Government $317,930
Federal /State Operating Grants - Other Funds
Community Development Community Development Block Grant $912,849
Community Development HUD HOME Program 401,164
Transit UMTA - Current Year per Grant 2,200,000
Transit Commute Trip Pass Thru WSDOT 10,000
Transit CMAQ DOT Sunday Service 76,940
Transit WA State Transit Operating Grant 117,977
Emergency Services Department of Health - Pre - hospital Grant 1,726
Total Federal /State Operating Grants - Other Funds $3,720,656
Federal Entitlements
PFD Capitol Theatre Capitol Theatre - Build America Bond Subsidy $99,422
Police Federal Forfeited Property 100,000
Total Federal Entitlements $199,422
State Shared Revenue
Police Criminal Justice - High Crime $344,000
Police Criminal Justice - Violent 107,000
Police Criminal Justice - Special programs 62,800
Police MVET DUI Payment 17,000
General Fund Liquor Excise Tax 195,000
General Fund Liquor Board Profits 829,500
Economic Development City Assistance 80,000
Parks and Recreation Criminal Justice - Special Programs 20,400
Streets Gas Tax 1,297,100
Arterial Streets Arterial Street Gas Tax 606,400
Firemen Relief & Pension Fire Insurance Premium Tax 72,838
Total State Shared Revenue $3,632,038
12 — Section III • Other Funds
Amount
Department Description of Grant
Intergovernmental Contract / Services
Police Police - Fairgrounds $10,000
Police Resource Officers 678,311
Police Selah Jail Contract 5,000
Police YPD OT Reimbursement by County 10,000
Police Violent Crimes Taxi( Force 1,000
Fire Fire - EMS Levy 34,500
Fire Personnel Services - Training 5,000
Fire Fire Investigator Services 500
Fire Fire Training Programs 2,400
Fire Fire Training Services 8,000
Traffic Engineering Engineering Services 500
Purchasing Purchasing Services 259,700
Emergency Services EMS Levy 1,335,000
Public Safety Communications Fire District #10 24,000
Public Safety Communications 911 Service Contracts 1,786,262
Public Safety Communications Fire Dispatch Services 227,200
Public Safety Communications Police Dispatching Service 94,225
Public Safety Communications Information Technical Services 67,600
Public Safety Communications Union Gap Electronics 9,410
Public Facilities District Public Facilities District Revenue 755,000
PFD - Capitol Theatre Public Facilities District Capitol Theatre 575,000
YAKCORPS Intergovt IS Services 24,000
YAKCORPS YAKCORPS Assessment 610,671
Transit Selah Transit Bus 250,000
Transit Selah Transit Dial -a -Ride 50,000
Yakima County SIED Interlocal Grant 925,000
Total Intergovernmental Contract / Services $7,748,279
Total 2014 Grants and Other Subsidies $33,479,173
Other Funds • Section III —13
14 — Section III • Other Funds
Section IV - Strategic Initiatives
STRATEGIC INITIATIVES
CITY ADMINISTRATION
Economic Development
Proposed Personnel
Strategic Initiative Request / Justification Funding Source Salary / Benefits Non - Personnel S/P
Implement Downtown Retail Plan Economic $25,000 ED
Development Fund
Implement Downtown Master Plan Economic $145,000 ED
Development Fund
Enhance /Expand Downtown Events General Fund $40,000 ED
$70,000 in 2013, increased to $110,000
Cascade Mill Site Project — 2014 LIFT Funding $2,400,000 ED
Continue Redevelopment Project
Convention Center
Proposed Personnel
Strategic Initiative Request / Justification Funding Source Salary / Benefits Non - Personnel S/P
Convention Center Management Fee Increase Tourist Promotion $13,900 PA
Operating Fund 170
Visitor Information Center
Proposed Personnel
Strategic Initiative Request / Justification Funding Source Salary / Benefits Non - Personnel S/P
Increase Funding for the Visitor Information Tourist Promotion $20,000 PA
Center Operating Fund 170
Capitol Theatre
Proposed Personnel
Strategic Initiative Request / Justification Funding Source Salary / Benefits Non - Personnel S/P
Plan and Implement Capitol Theatre Repair and Capitol Theatre $140,000 PA
Improvements (funded by Capital Transfers) Construction Fund
Strategic Priority Legend
Economic Development ED Public Trust and Accountability PT
Public Safety PS Partnerships PA
Built Environment BE
Strategic Initiatives • Section 1V —1
Gang Free Initiative
Proposed Personnel
Strategic Initiative Request / Justification Funding Source Salary / Benefits Non - Personnel S/P
Gang Free Initiative: General Fund PS
Add Operations Manager $88,600
Contracted Services $237,500
Other Incidental Costs $7,000
Total GFI 2014 — $333,100
Human Resources
Proposed Personnel
Strategic Initiative Request / Justification Funding Source Salary / Benefits Non - Personnel S/P
Reorganization — Eliminate net 1 4 positions PA
Eliminate Deputy FIR position- Total ($102,700) General Fund ($46,200)
Eliminate FIR Specialist —Total ($75,800) (75,800)
Add 0.6 FIR Assistant 45,000
Total General Fund ($77,000)
Other Funds (56,500)
Total ($133,500)
Implement Quality Customer Service Academy General Fund $50,000 PA
LEGAL
Proposed Personnel
Strategic Initiative Request / Justification Funding Source Salary / Benefits Non - Personnel S/P
No 2014 Strategic Initiatives
MUNICIPAL COURT
Proposed Personnel
Strategic Initiative Request / Justification Funding Source Salary / Benefits Non - Personnel S/P
No 2014 Strategic Initiatives
FINANCE
Proposed Personnel
Strategic Initiative Request / Justification Funding Source Salary / Benefits Non - Personnel S/P
No 2014 Strategic Initiatives
Strategic Priority Legend
Economic Development ED Public Trust and Accountability PT
Public Safety PS Partnerships PA
Built Environment BE
2 — Section IV • Strategic Initiatives
COMMUNITY DEVELOPMENT
Code Administration
Proposed Personnel
Strategic Initiative Request / Justification Funding Source Salary / Benefits Non - Personnel S/P
Add 2 Code Compliance Officers - 9 months General Fund $100,000 BE
Annually $133,300
City Hall Improvements REET 1 Fund $200,000 BE
POLICE
Proposed Personnel
Strategic Initiative Request / Justification Funding Source Salary / Benefits Non - Personnel S/P
Reinstate One Parking Enforcement Officer General Fund $56,800 Revenue $40,000 PS
Mostly funded by anticipated increase in parking
ticket revenue. Net cost to General Fund. $16,800
Expand Downtown Bicycle/Foot Patrol General Fund $64,800 PS
Start in March and extend through October
Overtime for 4 days /wk
Increase Training Program Funding General Fund $75,000 PS
Succession planning to train command staff.
Automated License Plate Reader Program Law and Justice $135,000 PS
Capital Fund
New Communications Center Construction Public Safety
$97,500 each fund 2014. Annually with debt Communication PS
service and annual lease payments: Fund. 2014.
General Fund - $363,250 General Fund $97,500
Yakima County 911 - $268,050 County 911 Fund 97,500
$195,000
Communications & Technology Reorganization General Fund $100,200 PS
Reinstate 1 0 Information Technology Manager 911 Fund 42,000
Citywide total $142,200
Transfer Electronics program from Transfer from PS
Communications to TT Comm Fund 152 to
3.0 Electronics positions - $293,000 General Fund —
Non- personnel expenses - $47,000 Related Revenue
Total Electronics Program Transferred - $340,000 $108,000
Reduced Transfer to
152 - $210,000
Strategic Priority Legend
Economic Development ED Public Trust and Accountability PT
Public Safety PS Partnerships PA
Built Environment BE
Strategic Initiatives • Section 1V — 3
FIRE
Proposed Personnel
Strategic Initiative Request / Justification Funding Source Salary / Benefits Non - Personnel S/P
Reorganization PS
Eliminate 3.0 Battalion Chiefs General Fund Net savings —
Add 3.0 Shift Fire Captains ($67,700)
Eliminate "brown -outs"
Reinstate 2.0 Firefighters 163,700
Increase Overtime Budgets 225,000
$321,000
Increase Firefighter Training $75,000
Total Increase in General Fund - $396,000
EMS Fund.
Add 1.0 Training Lieutenant EMS Fund 150 $107,900
Increase Overtime Budget 25,000
Total Increase in EMS Fund - $132,900
Purchase One Replacement Brush Truck Fire Capital $130,000 PS
YAKIMA AIRPORT
Proposed Personnel
Strategic Initiative Request / Justification Funding Source Salary / Benefits Non - Personnel S/P
Implement Airport Marketing Plan General Fund $100,000 ED
Terminal Improvements Airport Operating 50,000
Fund $150,000
Airport Taxiway/Lighting Improvements Airport Capital $10,000,000
Fund BE
FAA Grant/Local 1,100,000
Match $11,100,000
Strategic Priority Legend
Economic Development ED Public Trust and Accountability PT
Public Safety PS Partnerships PA
Built Environment BE
4 — Section IV • Strategic Initiatives
UTILITIES & ENGINEERING
Engineering
Proposed Personnel
Strategic Initiative Request / Justification Funding Source Salary / Benefits Non - Personnel S/P
Implement Right of Way /Street Cut Program BE
Reinstate 1 0 Supervising Traffic Engineer General Fund $94,100
Transfer 2.0 Traffic Tech II's from Streets 146,400
Add Street Cut Charge $240,500 Revenue - $150,000
Net Program Cost- General Fund $90,500
Street Fund — Transfer out 2.0 Traffic Tech II's Street Fund (146,400)
Total General Govt. Net savings $55,900
Pedestrian and Bicycle Connectivity Plan Gas Tax /Arterial $40,000 BE
Street Fund
Wastewater
Proposed Personnel
Strategic Initiative Request / Justification Funding Source Salary / Benefits Non - Personnel S/P
Complete Wastewater Collections Master Plan Wastewater $100,000 BE
Collections Capital
Fund.
Wastewater Utility
Revenues
Installation of Biosolids Dryer Wastewater 2014. $4,700,000 BE
State loans repaid by rates. Collections Capital 2015 $3,200,000
Fund. Total $7,900,000
Department of
Ecology Loans
Salmon Recover/Riparian Restoration Project Wastewater $1,500,000 BE
Collections Capital 300,000
Fund. $1,800,000
Grants
Utility Revenues
Stormwater
Proposed Personnel
Strategic Initiative Request / Justification Funding Source Salary / Benefits Non - Personnel S/P
Implement Integrated Stormwater Plan Stormwater Capital $600,000 BE
Strategic Priority Legend
Economic Development ED Public Trust and Accountability PT
Public Safety PS Partnerships PA
Built Environment BE
Strategic Initiatives • Section 1V — 5
Stormwater/Wastewater
Proposed Personnel
Strategic Initiative Request / Justification Funding Source Salary / Benefits Non - Personnel S/P
Update Stormwater, Wastewater and Industrial Stormwater Rates $45,000 BE
Wastewater Rate Studies Wastewater Rates 65,000
$110,000
PUBLIC WORKS
Parks & Recreation
Proposed Personnel
Strategic Initiative Request / Justification Funding Source Salary / Benefits Non - Personnel S/P
Reinstate 1 0 Administrative Assistant Parks and $59,500 PA
Transfer .4 Associate Planner back to General Recreation Fund
Fund. With other changes, no General Fund
net effect
Streets
Proposed Personnel
Strategic Initiative Request / Justification Funding Source Salary / Benefits Non - Personnel S/P
Implement Phase I of North 1st Street Plan - Arterial Street Fund:
to be completed over 2 years.
Total Project 2014 BE
$2,718,000 STP Grant $1,038,000
406,000 Gas Tax 162,000
$3,124,000 $1,200,000
Road Improvements BE
Improvements - New Street Capital Fund to G.O. Bonds $16,500,000
account for Charter amendment Street Capital Fund
Debt Service on $16 5 million bond issue - General Fund 2,000,000
10 year payback $18,500,000
Transit
Proposed Personnel
Strategic Initiative Request / Justification Funding Source Salary / Benefits Non - Personnel S/P
Transit Center Staffing Changes Transit Operating BE
Add 2 0.577 DA II's Fund —Local Sales $67,800
Add 0.3 Vehicle Cleaner - (Increase permanent Tax $10,000
part -time hours)
Purchase 3 Heavy Duty Replacement Buses Transit Capital Fund $1,290,000 BE
Local Sales Tax
Dial -A -Ride (DAR) Replacement Plan -- Transit Capital Fund $392,000 BE
State Grant ($313,500) matched with Local Sales Grants and Local
Tax ($78,500) Sales Tax
Strategic Priority Legend
Economic Development ED Public Trust and Accountability PT
Public Safety PS Partnerships PA
Built Environment BE
6 — Section IV • Strategic Initiatives
Equipment Rental
Proposed Personnel
Strategic Initiative Request / Justification Funding Source Salary / Benefits Non - Personnel S/P
Fleet Vehicle Additions and Replacements Equipment Rental $1,621,000 PT
Engineering Replacement Fund
Toyota Tacoma $27,000
Streets
Ford 1 Ton Crew Cab 45,000
Front Loader 175,000
Water & Irrigation
1/2 Ton PU Ext Cab 30,000
Toro Dingo (addition) 44,000
Ford Utilimaster 100,000
Refuse
Automated Sideloader 315,000
Automated Sideloader 315,000
Wastewater
1/2 Ton PU Ext Cab (addition) 40,000
For Transit Connect 40,000
For Transit Connect 40,000
Combination Sewer Cleaner 450,000
Total $1,621,000
Diesel Particulate Filter Cleaning Equipment Equipment Rental $85,000 PT
Funded by operating reserves —to be repaid by
funds contributing to M &O over 5 years. M &O Budget
Note: possibility for grant —not yet awarded
Public Works Administration
Proposed Personnel
Strategic Initiative Request / Justification Funding Source Salary / Benefits Non - Personnel S/P
Reinstate 1 Department Assistant II Public Works $46,100 PT
Shared by Funds paying PW Admin charges Admin Fund
Improvements to Southeast Community Center, Parks and $45,000 PA
in partnership with OIC Recreation Fund
Strategic Priority Legend
Economic Development ED Public Trust and Accountability PT
Public Safety PS Partnerships PA
Built Environment BE
Strategic Initiatives • Section 1V — 7
CITY ADMINISTRATION / ECONOMIC DEVELOPMENT
2014 STRATEGIC INITIATIVE
IMPLEMENT DOWNTOWN RETAIL PLAN
BUDGETED
PROPOSAL
Throughout 2013, Thomas Consulting developed a retail element of the Downtown Yakima Master
Plan. It is proposed that Phase 1 of the retail element of the plan, which consists of proactively
marketing Downtown Yakima to potential investors and site selectors, be initiated in 2014. Phase 1
will also include the formation of a Downtown Yakima Retail Task Force, which will attend the
International Council of Shopping Centers annual conference in Las Vegas in order to meet with
prospective investors and developers. Other work will include creating marketing materials that
explain the direction the City is heading with the planning process, and arranging meetings with
developers throughout the NW selling our downtown to future investors.
IMPACTS
1. Fiscal Impact — $25,000.
2. Proposed Funding Source - Economic Development Fund.
3. Public Impact - New investment to the downtown district.
4. Personnel Impact - No additional staffing required at this time; work to be performed by
Economic Development Staff and Community Partners.
5. Required Changes in City Regulations or Policies — None.
6. Legal Constraints, if applicable — None.
7. Viable Alternatives — None.
8 - Section IV • Strategic Initiatives
CITY ADMINISTRATION / ECONOMIC DEVELOPMENT
2014 STRATEGIC INITIATIVE
IMPLEMENT DOWNTOWN MASTER PLAN
BUDGETED
PROPOSAL
The Downtown Yakima Master Plan developed by the Crandall Arambula consulting firm has
identified essential concepts and created a roadmap for initiating a successful transformation of
Downtown Yakima to a vibrant, cultural, arts, and entertainment destination. The first step in this
transformative process is the creation of a public plaza in front of the Capitol Theatre. To that end,
it will be necessary to retain a consulting firm to design and develop conceptual plans for the
proposed public plaza.
IMPACTS
1. Fiscal Impact — $145,000.
2. Proposed Funding Source - Economic Development Fund.
3. Public Impact - This project will implement phase 1 of the downtown master plan as
presented by Crandall Arambula. The key part of not only designing, but creating
construction bid documents sends a strong signal of the City's intent of implementing the
downtown master plan.
4. Personnel Impact - None, work performed by current Economic Development Staff and
Community Partners.
5. Required Changes in City Regulations or Policies - As the downtown plan takes shape,
design guidelines for the area will be proposed for Council approval —plans will ultimately
need to be in compliance with any new development rules.
6. Legal Constraints, if applicable - None.
7. Viable Alternatives - The south plaza was the location recommended by Crandall
Arambula and by an 80 -1 vote at the second public session for the downtown plan.
Strategic Initiatives • Section IV - 9
CITY ADMINISTRATION / ECONOMIC DEVELOPMENT
2014 STRATEGIC INITIATIVE
ENHANCE / EXPAND DOWNTOWN EVENTS
BUDGETED
PROPOSAL
By providing increased police security, expanded free parking, creating new Thursday night and
Friday lunchtime concert series, and establishing a Tuesday evening Farmers Market, the City has
begun to attract Yakima residents back to the downtown core. Building on the first phase of
downtown activities initiated in 2013, additional events are being proposed for 2014 to create even
more energy, animation, and vibrancy to downtown. With a proposed budget of $110,000, more
City /private sector sponsored events such as a Cultural Concert Series, Spring Barrel Art Festival,
Blues and Brews Festival, expanded Fresh Hop Ale Festival, and enhanced holiday activities will
take place. The goal is to elevate the quantity and quality of Downtown Yakima events in 2014 in
order to continue to develop the area's growing reputation as a cultural, arts, and entertainment
destination.
IMPACTS
1. Fiscal Impact - Additional $40,000. Increase budget from $70,000 in 2013 to $110,000 in
2014.
2. Proposed Funding Source - General Fund.
3. Public Impact - The public has responded well to new events and activities in the
community and would enthusiastically like to see them continue.
4. Personnel Impact - None, work performed by current Economic Development Staff and
Community Partners.
5. Required Changes in City Regulations or Policies — None.
6. Legal Constraints, if applicable — None.
7. Viable Alternatives — None.
10 - Section IV • Strategic Initiatives
CITY ADMINISTRATION / ECONOMIC DEVELOPMENT
2014 STRATEGIC INITIATIVE
CASCADE MILL PROJECT - 2014
BUDGETED
PROPOSAL
The City of Yakima has a number of initiatives related to the Cascade Mill Redevelopment Project
in 2014. The estimated FY 2014 budget investment of more than $2,400,000 represents the estimated
cost of the program in 2014. This is funded by the Local Infrastructure Financing Tool (LIFT)
funding reimbursement from the State of Washington of $1.0 million annually and a Yakima
County SIED loan /grant is available in the amount of $1,850,000 if needed.
In 2014, the City will be working closely with the Department of Ecology (DOE) to prepare
the Remedial Action Plan and permitting documents for cleanup of the former municipal
landfill and the removal of wood waste.
In 2014, a funding strategy will be developed in cooperation with DOE for use of Brownfield
and Model Toxic Control Act (MOTCA) grant funds for the cleanup and remediation of the
landfill and the plywood plant sites.
In 2014, the City will hire an urban land economist to assist in determination of the most
desirable land uses at the Cascade Mill property that compliment but do not compete with
the downtown area. This evaluation will enable the City to better understand rental,
occupancy, and absorption rates for various potential uses including: retail, office, hotel and
institutional uses such as hospitals and educational facilities.
A roundabout is planned at the intersection of Fair Avenue, Lincoln Avenue, and MLK, Jr.
Blvd. A $990,000 state grant application was submitted in 2013.
The City will proceed with right of way acquisition, as necessary, and the completion of
engineering plans for the Cascade Mill Parkway. The first phase of the Cascade Mill
Parkway includes construction of the Fair Avenue roundabout to facilitate environmental
cleanup at the landfill site. We anticipate a donation of land that will substantially meet the
$1.0 million local match requirement.
The federally required Interstate 82 Interchange Modification process will be largely
completed in 2014. The Washington State Department of Transportation is the lead agency
for the Interchange Project and will be supported by the City and Yakima County.
The City and County have a contract with Lochner & Associates to prepare the engineering
and environmental review of the Interchange Project, the East -West Corridor and the
Cascade Mill Parkway. Other development site issues have also been addressed under this
professional services contract.
IMPACTS
1. Fiscal Impact - Total 2014 budget -- $2,473,235
i. Land purchase (if warranted for clean -up effort) $800,000
ii. Roundabout /first phase of Cascade Mill Parkway 619,914
iii. City share of East -West Corridor project 788,321
iv. City share of Interchange modification project 225,000
v. Economic Analysis 40,000
Strategic Initiatives • Section 1V -11
Wood waste excavation and handling costs are under review at this time.
2. Proposed Funding Source - Yakima Redevelopment Area Fund -- Local Infrastructure
Financing Tool (LIFT) funding reimbursement from the State of Washington of $1.0 million
annually and a Yakima County SIED loan /grant is available in the amount of $1,850,000 if
needed. We anticipate our $1 million match to be provided by Right -of -way donation
related to the Cascade Mill Parkway.
Eligible project elements for LIFT funding and the roundabout was the subject of a TIB grant
for $991,000, however, this revenue is not currently budgeted. Should the grant be awarded,
an appropriation will be brought for Council approval
3. Public Impact - The public will benefit from a well - developed implementation plan which
is consistent with market conditions in Yakima and will complement not compete with the
efforts for downtown redevelopment. The public will experience improved access at the
new roundabout and the commencement of clean -up activities at the landfill.
4. Personnel Impact - Existing staff and Lochner contract will handle these elements.
5. Required Changes in City Regulations or Policies - None.
6. Legal Constraints, if applicable - The DOE permitting process will require support from
the legal division.
7. Viable Alternatives - None.
12 - Section IV • Strategic Initiatives
CITY ADMINISTRATION / CONVENTION CENTER
2014 STRATEGIC INITIATIVE
CONVENTION CENTER MANAGEMENT FEE INCREASE
BUDGETED
PROPOSAL
The Yakima Valley Visitors & Convention Bureau manages and operates the Yakima Convention
Center. Over the years, operation and management costs have continued to increase. This
proposal requests a $13,900 (2 %) increase to the management fee. This line item includes wages for
the Convention Center staff and the management fee to the Visitors and Convention Bureau (VCB).
This increase will allow us to increase promotion and marketing to stimulate economic growth
through convention business and tourism, while also assisting in covering increased costs of
medical insurance and similar employee costs.
IMPACTS
1. Fiscal Impact - $13,900 Increase —from $694,300 in 2013 to $708,200 in 2014.
2. Proposed Funding Source - Tourist Promotion Operating Fund —Hotel /Motel tax and
Convention Center operations.
3. Public Impact - Continue to provide exceptional service.
4. Personnel Impact — None.
5. Required Changes in City Regulations or Policies — None.
6. Legal Constraints, if applicable — None.
7. Viable Alternatives — None.
Strategic Initiatives • Section IV -13
CITY ADMINISTRATION / CONVENTION CENTER
2014 STRATEGIC INITIATIVE
INCREASE FUNDING FOR THE VISITOR INFORMATION CENTER
BUDGETED
PROPOSAL
The City of Yakima with various partners built the official Visitor Information Center (VIC) located
off of I -82 near Yakima Avenue in 2003. The Yakima Valley Visitors & Convention Bureau
(YVVCB) operates and maintains the facility. Currently the VIC is partially funded through the
Tourist Promotion Fund ($40,000 which is 31% of the VIC budget). The balance of support (69 %)
comes from the private sector. City support has remained at $40,000 for the past ten years, but
expenses have grown. As the structure is now 10 years old, there will be rising costs for
maintenance, employee costs have risen as have various utilities and other operating expenses.
Private sector support has been strong but alone can't keep up with rising expenses. Staff proposes
increasing the City's annual contribution from $40,000 to $60,000 in 2014.
The VIC stimulates positive economic growth. It serves more than 14,490 people each year plus
thousands of others through phone calls, emails, mailings and relocation requests. Our surveys of
visitors this year show that 20% of those served at the VIC extended their stays, with the majority
staying at least one extra night. Using this data as a baseline, we estimate that these extended stays
resulted in a minimum of $275,088 in new visitor spending in 2013 alone, and similar figures are
expected for 2014.
IMPACTS
1. Fiscal Impact — Additional $20,000.
2. Proposed Funding Source — Tourist Promotion Operating Fund - -Hotel /Motel Tax.
3. Public Impact — The VIC provides an opportunity for businesses of all sizes to distribute
information to travelers. Not only does it serve visitors but it is also a resource for residents
and potential new businesses.
4. Personnel Impact — None.
5. Required Changes in City Regulations or Policies — None.
6. Legal Constraints, if applicable — None.
7. Viable Alternatives — None.
14 — Section IV • Strategic Initiatives
CITY ADMINISTRATION / CAPITAL THEATRE
2014 STRATEGIC INITIATIVE
PLAN AND IMPLEMENT CAPITOL THEATRE REPAIR AND IMPROVEMENTS
BUDGETED
PROPOSAL
Historically, the City has given more toward the annual operating needs of the Capitol Theatre to
manage and operate the facility than to the capital repairs and improvements necessary to ensure
the theatre's long term viability. Currently, more than $1.8 million in deferred capital needs related
to the theatre exist. The maintenance, repair and upgrade items that have been identified to date
include: ADA and safety upgrades; repair and upgrade stage lighting system (includes safety
issues); replace orchestra shell, theatrical masking/backing, asbestos fire curtain, main curtain and
valance, counterweight rigging system, carpet, lobby elevator, dome lighting, front entry door, and
Robertson room ceiling tile. The total cost of the above work is estimated to be $1.8 million.
Funding for the entire list of capital projects is not currently in place. However, this program
proposes to prioritize the work items, and then proceed with each item of work in order of priority
as funds become available. Limited funding ($140,000) has been identified so it is anticipated that
the ADA and priority safety upgrades as identified in a recent Life Safety Evaluation report on the
facility will be completed in 2014. The Engineering Division will plan and begin implementation of
a capital repair and improvement plan for the Capitol Theatre -- Engineering and Capitol Theatre
staff will work together to make these needed improvements to this important piece of Yakima
history and future revitalization.
In light of the necessary capital improvements, the Capitol Theatre Committee is not asking for an
increase in its management fee. This operational support will remain at $232,000 in 2014.
IMPACTS
1. Fiscal Impact — $140,000.
2. Proposed Funding Source - Capitol Theatre Construction Fund - Transfer from Capitol
Theatre Reserve Fund.
3. Public Impact - Better ADA access and safer facility.
4. Personnel Impact — None.
5. Required Changes in City Regulations or Policies — None.
6. Legal Constraints, if applicable — None.
7. Viable Alternatives - Do nothing or delay starting the repairs and upgrades. This could
cause safety concerns and allow further degradation of the facility.
Strategic Initiatives • Section IV -15
CITY ADMINISTRATION / ECONOMIC DEVELOPMENT
2014 STRATEGIC INITIATIVE
GANG FREE INITIATIVE
BUDGETED
PROPOSAL
The City began the process to address the City's gang issue in 2011 by contracting with Magallan
Consultancy to develop a Gang Free Initiative. Over the past few years, Magallan Consultancy has
led the City through a visioning process to develop a strategy to understand how young people get
caught up in gangs, and how the community can intervene to prevent the proliferation of gangs.
This included collaboration with agencies that are already providing services to at -risk youth and
partnering to support those existing efforts.
The program has developed from a planning, developing stage into service delivery. The 2013
budget included several contracts with community organizations, such as YPAL, People for People,
Madison House, and Comprehensive Mental Health. As the program matures, the oversight
function is changing from one of facilitating collaboration and developing appropriate partnerships
to one of contract management and service coordination. The consultant agrees that this is better
done through the direct supervision by the City.
Therefore, the proposed FY 2014 budget includes the hiring of a Gang Free Initiative Operations
Manager to direct, manage, and oversee the operations of the Gang Free Initiative and ensure the
effective public and private sector coordination and integration of resources directed toward the
prevention and intervention of gang related crime and violence.
IMPACTS
1. Fiscal Impact —
Add Operations Manager $88,600
Contracted Services 237,500
Other Incidental Costs 7,000
Total $333,100
2. Proposed Funding Source - General Fund.
3. Public Impact - Coordinated service delivery.
4. Personnel Impact - Addition of 1 additional FTE position.
5. Required Changes in City Regulations or Policies — Develop job description.
6. Legal Constraints, if applicable — None.
7. Viable Alternatives - Keep coordination with consultant.
16 - Section IV • Strategic Initiatives
CITY ADMINISTRATION / HUMAN RESOURCES
2014 STRATEGIC INITIATIVE
REORGANIZATION
BUDGETED
PROPOSAL
The Human Resources division has experienced significant turn -over in 2013. Upper management
took this opportunity to review the staffing levels and is proposing to eliminate a mid -level
manager, and replace a full -time staff position (Human Resource Specialist) with a lower -level
permanent part -time (60 %) position (Human Resource Assistant).
This reduction in personnel results in a Citywide savings of $133,500, with $77,000 assisting in
balancing General Fund, and $56,500 reducing the Unemployment, Workers' Compensation, and
Medical Benefit internal service funds.
IMPACTS
1. Fiscal Impact -
Eliminate Deputy HR position ($102,700)
Eliminate HR Specialist (75,800)
Add 0.6 HR Assistant 45,000
Total ($133,500)
1. Proposed Funding Source - General Fund savings ($77,000); Other Fund savings ($56,500).
2. Public Impact - Reallocation of existing resources will maintain focus on the Civil Service
hiring process.
3. Personnel Impact - Internal operational analysis possibly resulting in additional training
opportunities.
4. Required Changes in City Regulations or Policies - Update position listings in the pay
ordinance and payroll system.
5. Legal Constraints, if applicable - None.
6. Viable Alternatives - Staff is recommending that we move to this staffing complement. If
service levels suffer, this could be revisited in future budget years.
Strategic Initiatives • Section IV -17
CITY ADMINISTRATION / HUMAN RESOURCES
2014 STRATEGIC INITIATIVE
IMPLEMENT QUALITY CUSTOMER SERVICE ACADEMY
BUDGETED
PROPOSAL
Based on the information gathered from citizen and employee surveys, in 2014 the City will
implement an Excellence in Customer Service Academy. The academy will be similar to a college
model, with classes and coursework activities. We will have 15 -20 exceptional employees that will
learn to be the trainers for the academy. We will develop a mission, quality improvements, and
deploy standardized practices for the new process. At the end of the academy, there will be a
graduation ceremony to celebrate our successes. The primary goal of the academy is to align the
service level on the employee survey with the citizen survey.
IMPACTS
1. Fiscal Impact — $50,000.
2. Proposed Funding Source — General Fund.
3. Public Impact — Improved, consistent Customer Service.
4. Personnel Impact — Participation in Customer Service training.
5. Required Changes in City Regulations or Policies — Contract with a consulting /training
firm.
6. Legal Constraints, if applicable — None.
7. Viable Alternatives — We believe this is the most efficient way to do customer service
training.
18 — Section IV • Strategic Initiatives
COMMUNITY DEVELOPMENT / CODES /PLANNING
2014 STRATEGIC INITIATIVE
ADD TWO CODE COMPLIANCE OFFICERS
BUDGETED
PROPOSAL
For the past two years, the City's Code Enforcement services have been rated as poor in Citizen
Surveys. The Code Enforcement Division believes these ratings are the result of insufficient staffing
levels and the City's "complaint- driven" response system, which was instituted several years ago in
lieu of a proactive code enforcement approach. The Code Administration Division proposes
adding two additional code enforcement officers to the existing three starting in April 2014. This
additional staff will allow the City to be both more proactive and better able to respond to code
violations, in particular sign violations, to make the City more attractive.
IMPACTS
1. Fiscal Impact - $100,000 (9 months /2014): $133,300 Annually
2. Proposed Funding Source - General Fund.
3. Public Impact - Improved response to code violations and complaints — ultimately a
cleaner, safer community.
4. Personnel Impact - Additional code compliance officers to address areas of concern along
with the ability to meet the public's demand of cleaning up the city.
5. Required Changes in City Regulations or Policies - None.
6. Legal Constraints, if applicable - None.
7. Viable Alternatives - Stay status quo with the three existing code compliance officers.
Strategic Initiatives • Section IV -19
COMMUNITY DEVELOPMENT / CITY HALL MAINTENANCE
2014 STRATEGIC INITIATIVE
CITY HALL IMPROVEMENTS
BUDGETED
PROPOSAL
Yakima City Hall was built in 1949 and has had few upgrades made to it over the past six decades.
It is proposed that in 2014 several customer - focused interior improvements be made to the first
floor of City Hall in order to update the appearance, lighting, and ADA accessibility to the west
lobby entry and customer service counters.
Along with the ADA upgrades at the Utilities counter and at the west lobby entry doors,
improvements to the lobby area for enhanced services are also scheduled. These include:
Updating doors and entryways in the main lobby, as well as both entrances
. Updated lighting /ceilings in the main lobby
Walk off mats, carpet and other updates to Council Chambers and adjoining areas
Canopies over both main entryways
IMPACTS
1. Fiscal Impact - $200,000.
2. Proposed Funding Source - Real Estate Excise Tax (REET) 1 Fund.
3. Public Impact - Appropriate ADA access to customer service counters. A sense of pride in a
better functioning City Hall.
4. Personnel Impact - Managing contracts and staging the work.
5. Required Changes in City Regulations or Policies - None.
6. Legal Constraints, if applicable - Follow proper purchasing procedures.
7. Viable Alternatives - Increase or reduce project scope.
20 - Section IV • Strategic Initiatives
POLICE
2014 STRATEGIC INITIATIVE
REINSTATE ONE PARKING ENFORCEMENT OFFICER
BUDGETED
PROPOSAL
The Yakima Police Department proposes to re- instate one full time parking enforcement officer.
The additional officer will be dedicated to downtown parking enforcement, with a specific focus on
parking space turnover. For the last three months the department has been using a full -time
temporary employee to determine the need for this position to become permanent. Results have
shown that the officer is currently averaging 63 parking infractions a week, with 40 of those being
for overtime violations. It is projected that in 2014 this position will issue 2,450 total parking
infractions with 1,470 of those being for overtime violations. With continued and ongoing
enforcement of downtown parking regulations the department is convinced that parking spaces
will continue to turn over and be available for shoppers, and that parking space abuse will be
greatly reduced.
IMPACTS
1. Fiscal Impact - $56,800. Estimated to generate ticket revenue of $40,000. Net cost to
General Fund -- $16,800.
2. Proposed Funding Source - General Fund. Typically parking enforcement almost pays for
itself by the ticket revenue generated.
3. Public Impact - More parking spaces available for shopping in the downtown.
4. Personnel Impact - One additional civilian FTE in the Police Department.
5. Required Changes in City Regulations or Policies — None.
6. Legal Constraints, if applicable — None.
7. Viable Alternatives — None.
Strategic Initiatives • Section IV - 21
POLICE
2014 STRATEGIC INITIATIVE
EXPAND DOWNTOWN BICYCLE /FOOT PATROL
BUDGETED
PROPOSAL
Given the public safety and security concerns about downtown, particularly at night, as reflected in
the 2013 Citizen Survey, the proposed FY 2014 budget includes expanding the downtown bike /foot
patrol from the existing summer patrols to both spring and fall patrols as well. The additional
patrols will include March through mid -June and mid - August through October. There will be two
officers on six -hour shifts, four days a week during these additional periods.
IMPACTS
1. Fiscal Impact - $64,800 for two officers on four -day per week coverage in the patrol
overtime budget.
2. Proposed Funding Source - General Fund.
3. Public Impact - This proposal would continue to improve the public perception of safety in
the Downtown area.
4. Personnel Impact - There would be no additional staffing. Patrols would be done on an
overtime basis.
5. Required Changes in City Regulations or Policies — None.
6. Legal Constraints, if applicable — None.
7. Viable Alternatives - Add staffing to conduct Downtown foot/bicycle patrols or continue
with summer only patrols.
22 - Section IV • Strategic Initiatives
POLICE
2014 STRATEGIC INITIATIVE
INCREASE TRAINING PROGRAM FUNDING
BUDGETED
PROPOSAL
The Yakima Police Department is projecting significant senior and supervisory management
turnover during the next several years. To properly develop the future leadership of the
department, the proposed FY 2014 budget includes the investment of $75,000 to provide leadership
and management training for new police managers and to prepare patrol -level officers for career
development opportunities and skill sets.
IMPACTS
1. Fiscal Impact — $75,000.
2. Proposed Funding Source — General Fund.
3. Public Impact - This proposal would provide citizens with highly trained police
professionals in the management ranks of the Police Department.
4. Personnel Impact - Time invested in training.
5. Required Changes in City Regulations or Policies — None.
6. Legal Constraints, if applicable — None.
7. Viable Alternatives - Continue with current training program.
Strategic Initiatives • Section IV - 23
POLICE
2014 STRATEGIC INITIATIVE
AUTOMATED LICENSE PLATE READER PROGRAM
BUDGETED
PROPOSAL
Yakima currently ranks fifth nationally per capita in auto thefts. The City of Yakima remains
committed to reducing auto thefts and plans to lower incidents of theft and increase recovery of
stolen vehicles by purchasing automated license plate reader (ALPR) systems for eight police
vehicles. Additionally, the license plate reader technology will be utilized in the investigation and
prosecution of a variety of other crimes.
IMPACTS
1. Fiscal Impact — $135,000.
2. Proposed Funding Source - Law and Justice Capital Fund.
3. Public Impact - This proposal will aid in the investigation of auto theft and expedient
recovery of stolen vehicles, providing better service to the public.
4. Personnel Impact — None.
5. Required Changes in City Regulations or Policies — Identify information retention policies
for the program.
6. Legal Constraints, if applicable - None.
7. Viable Alternatives - Continue without ALPR technology.
24 - Section IV • Strategic Initiatives
POLICE /COMMUNICATIONS
2014 STRATEGIC INITIATIVE
NEW COMMUNICATIONS CENTER CONSTRUCTION
BUDGETED
PROPOSAL
The Communications Center operates as a joint facility with the County 911 system and the City's
dispatching system. The associated 911 costs are paid via an operations contract with Yakima
County from the 911 revenue raised by the 911 excise tax. The dispatch section is funded by the
City with a portion supported by dispatching contracts with outside fire and police user agencies.
This joint operation is currently housed at the Law and Justice Center, but the operation has
outgrown the current facility, and there is no more room for expansion. We have been in the
planning stages with Yakima County, representing the 911 Call taking interests, and after careful
and thorough evaluation have determine a remodel of the county- owned, minimum security jail
building in Union Gap was the most economical course of action. A Pre - Design Study has been
completed. The purpose of this phase is to identify needs, create a very preliminary design and
determine the Rough Order of Magnitude (ROM) costs of the project. The next step will be to
engage a firm to prepare the documents needed to go out to bid on construction.
The ROM costs:
Construction: (inc. design contingency 10 %, Construct $5,064,045
Cost Escalation 4 %, soft costs 32 %)
Dispatch Console Furniture 380,800
Office Furnishings 200,000
Site Improvements 179,700
Shared Subtotal $5,824,545
Communication Systems (Dispatch Only) $1,354,200
911 Costs $2,912,273
Dispatch Costs $4,266,473
Annual Bond Payments Estimate:
911 Share $203,700
Dispatch Share $298,900
The Dispatch share of the bond assumes that the Communication Systems costs are included in the
Bond rather than paid up front. If they are funded through a different mechanism, the annual bond
payment for Dispatch will be the same or similar to the 911 share. At this point in time we
anticipate the County will provide the bonding, so this project is not anticipated to be counted
against our authorized debt limit.
Strategic Initiatives • Section IV — 25
It should be noted that approximate $1.2 million of $5.064 million construction costs are additions
specific to this being an emergency communications facility. With this taken into account the basic
construction costs are approx. $328 per sq. foot which is not necessarily out of line with new construction.
Once construction is complete and the facility occupied the annual lease payments will take effect.
Annual Lease ($11 /sq. ft.):
911 Share $64,350
Dispatch Share $64,350
Resulting in a total new added cost for each section of:
Total additional cost once occupied:
911 Expense $268,050
Dispatch Expense $363,250
Once we move to the next step we are at least committed to seeing it through to review of the
construction bid awards. At that time the primary parties; City of Yakima and Yakima County
(representing the 911 system) would make a final decision. Assuming this goes forward as
presented, the 2014 budget includes an estimate of $195,000 for the first year costs of debt service.
Once the Communications Center is in its new facility, the space currently being occupied in the
Law and Justice Center will be available for City needs.
IMPACTS
1. Fiscal Impact - 2014:
General Fund $97,500
911 Fund $97,500
Annual estimate once project is completed:
General Fund $363,250
911 Fund $268,050
2. Proposed Funding Source - General Fund and Yakima County 911.
3. Public Impact - Better service provision in an updated facility. Potential to expand to a true
regional dispatch center, producing economies of scale around the County.
4. Personnel Impact - Moving to a new facility while maintaining uninterrupted 911 call -
taking and dispatching service.
5. Required Changes in City Regulations or Policies - None.
6. Legal Constraints, if applicable - Ultimately a rental contract with Yakima County. May
require Council approval to issue debt, depending on the financing structure.
7. Viable Alternatives - None. This is necessary to continue with the high level of service that
is demanded of this joint communications center.
26 - Section IV • Strategic Initiatives
POLICE / COMMUNICATIONS
2014 STRATEGIC INITIATIVE
COMMUNICATIONS & TECHNOLOGY REORGANIZATION
BUDGETED
PROPOSAL
It was approximately three years ago that the City combined the management of the
Communications Division and the Information Technology Services (ITS) Division as a cost savings
measure to assist in the reorganization of the ITS division during tight budget times. While that
measure has proven largely successful, given the proposed reorganization of the Communications
Division, including a potential move to a new facility, and increasing demands on the ITS Division,
it has become more challenging. Therefore, it has been determined that it is in the best interests of
the city to return these divisions to their separate management structures. This will specifically
split the manager position back into two separate positions. Additionally, the Communications
Administrative Assistant will focus solely on Communications Division duties while the duties of
the ITS Administrative Assistant will be expanded to include in -house computer user training.
While the City has enjoyed the costs savings of about $142,000 per year with this consolidation it is
not viable to continue because of workload and critical public safety initiatives that will require
significant attention, more than can be provided by this shared position.
The last component of this reorganization is to move the Electronics operation from the Public
Safety Communications (PSC) Fund into the ITS Division in General Fund, again in anticipation of
the physical move of the communications center. This consists of 3 FTE positions that provide
repair and maintenance for a variety of equipment, including radios, telephones, etc., for both the
entire City and by contract for other agencies. There is no change in the citywide budget, but this
does change both the General and PSC Funds' revenue and expenditure totals. This move adds
$340,000 to the ITS budget, $108,000 in General Fund revenue representing their charges for
service, and reduces the General Fund operating transfer to the Public Safety Communications
Fund by $210,000. After this move, the transfer to PSC consists solely of dispatch services.
IMPACTS
1. Fiscal Impact - Additional costs:
General Fund $100,200
Public Safety Communications Fund $42,000
2. Proposed Funding Source - Primarily General Fund /Public Safety Communication Fund.
3. Public Impact - Indirect better service provision.
4. Personnel Impact - Fill the position of Communications Manager. Fill the position of ITS
manager from existing personnel in the Communications & Technology Manager position.
5. Required Changes in City Regulations or Policies - Update the City Pay Ordinance and
position master for the changes.
Strategic Initiatives • Section IV - 27
6. Legal Constraints, if applicable — None.
7. Viable Alternatives — None.
28 — Section IV • Strategic Initiatives
FIRE
2014 STRATEGIC INITIATIVE
REORGANIZATION
BUDGETED
PROPOSAL
As a cost containment measure during the Great Recession, the Fire Departments overtime budget
was severely reduced, and if regularly scheduled staff were not available, the sixth apparatus was
not manned. Such days were considered "brownout" days. Last year the City did not have
adequate fire staffing to operate a full complement of fire service equipment 129 days (35 %) of the
year. To remedy this situation, $250,000 in additional overtime funds have been included in the
proposed FY 2014 budget. In addition, $271,600 in next year's proposed budget has been included
that will allow the hiring of two additional firefighters and a third to fill the firefighter vacancy that
resulted in reestablishing and filling the Training Lieutenant position. This will ensure adequate
staffing and eliminate brownout days. Overtime funds will also be used to meet peak staffing
demand periods in lieu of full -time staff.
As the staffing complement was reviewed, upper management determined that the Department
had a high ratio of management positions to non - management personnel, and proposed the
elimination of three (3) Battalion Chief positions (management), and the institution of three (3) Shift
Commander positions. This change in command structure is estimated to save $67,700.
In addition to the personnel increase, $75,000 is budgeted in FY 2014 for additional training to
ensure increased fire personnel skills, safety, and career development.
Note: In 2013, 8 of the 81 commissioned fire personnel (about 10 %) were being funded by the EMS
levy in a separate special revenue fund. Because the EMS levy was re- approved by voters starting
in 2014, and due to the funding formula of how the levy is distributed among County agencies, the
City is expected to collect about $140,000 more in 2014 than the 2013 budget. This funding was
available to cover the new Lieutenant and about 10% of the reinstated overtime.
IMPACTS
1. Fiscal Impact —
General Fund
Eliminate 3.0 Battalion Chiefs & add
3.0 Shift Fire Captains (Net savings) ($67,700)
Reinstate 2.0 Firefighters 163,700
Increase Overtime Budget 225,000
Increase Firefighter Training 75,000
Total General Fund $396,000
EMS Fund
Add 1.0 Training Lieutenant $107,900
Increase Overtime Budget 25,000
Total EMS Fund $132,900
Citywide Total $528,900
Strategic Initiatives • Section IV — 29
2. Proposed Funding Source - General Fund /EMS Fund.
3. Public Impact - The investment in the Fire Department will lead to the elimination of
brown outs in the Fire Department and needed depth of service identified in the Regional
Fire Authority project study. The Training Lieutenant position has been left vacant for
many years due to budget constraints causing the EMS Captain to fill both roles. The
increased training hours will bring the City closer to achieving the goal of a 3 rating by the
Survey and rating Bureau as well as provide a safer work environment for fire employees.
4. Personnel Impact - Increased safety.
5. Required Changes in City Regulations or Policies - None.
6. Legal Constraints, if applicable - None.
7. Viable Alternatives - Continue reduced service with periodic "brownout" days.
30 - Section IV • Strategic Initiatives
FIRE
2014 STRATEGIC INITIATIVE
PURCHASE ONE REPLACEMENT BRUSH TRUCK
BUDGETED
PROPOSAL
The Yakima Fire Department operates 2 wild land brush trucks to respond to wild land /urban
brush and grassland fires. These trucks respond from fire station facilities that are closest in
proximity to areas of the City that have the most potential for brush and grass fires. One of those
two brush trucks is a 1990 model that was acquired through a transfer of assets when the City
annexed Yakima County Fire Protection District #10, Fruitvale. This brush truck has served the
citizens for nearly 24 years, but as an emergency response vehicle, its useful service life is nearing
its end.
The purchase of a replacement brush truck will help to maintain a reliable, safe and capable wild
land fire suppression apparatus.
IMPACTS
1. Fiscal Impact — Up to $130,000.
2. Proposed Funding Source — Fire Capital Fund.
3. Public Impact — Reliable equipment to respond to brush and grassland fires .
4. Personnel Impact — Enhanced reliability and passenger safety.
5. Required Changes in City Regulations or Policies — None.
6. Legal Constraints, if applicable — None.
7. Viable Alternatives — Continue to use the aging vehicle.
Strategic Initiatives • Section 1V — 31
AIRPORT
2014 STRATEGIC INITIATIVE
IMPLEMENT AIRPORT MARKETING PLAN /TERMINAL IMPROVEMENTS
BUDGETED
PROPOSAL
In partnership with our new airport public - private sector alliance, the City will work with local
media partners to market and promote air service at the Yakima Air Terminal to the local
community. The ultimate goal of the $100,000 marketing commitment is to increase our current
load factors to secure a fourth daily flight by Alaska Airlines from Yakima to Seattle and eventually
expand service to new destinations such as Portland, Spokane, and Salt Lake City. Note: the City
applied for a grant to assist in this economic development initiative, but was not successful in
obtaining an award. The City intends to continue applying for applicable grants.
The current air terminal is 63 years old. To enhance the terminal's overall appearance, the
proposed FY 2014 budget includes the investment of $50,000 for new carpeting and paint.
IMPACTS
1. Fiscal Impact —
Airport Marketing Plan /General Fund $100,000
Airport Terminal Improvements /Air Terminal Operating Fund $50,000
2. Proposed Funding Source - General Fund and Yakima Air Terminal Operating Fund
3. Public Impact - More air service opportunities out of the Yakima Air Terminal for the local
community.
4. Personnel Impact — None.
5. Required Changes in City Regulations or Policies — None.
6. Legal Constraints, if applicable — None.
7. Viable Alternatives — None.
32 - Section IV • Strategic Initiatives
AIRPORT
2014 STRATEGIC INITIATIVE
AIRPORT TAXIWAY /LIGHTING IMPROVEMENTS
BUDGETED
PROPOSAL
The Yakima Air Terminal is an integral part of the City's transportation system and economic
development infrastructure. Through close cooperation with the Federal Aviation Administration,
the Airport recently received two grants totaling $10 million matched by $1.1 million in airport
passenger fees to rehabilitate the airport's primary taxiway and associated taxiway connectors. In
addition to the two grants, the airport will utilize its passenger facility charges to fund the
remaining balance of the project. (Note: The local match is more than we currently have available
in the capital. As previously approved by Council, the interfund loan program will be used as
necessary.) This project will replace aging asphalt, taxiway lights, taxiway signs, and airfield
markings to ensure the airport will continually meet Federal Aviation regulations while meeting
future aviation demands. This project is slated to begin in spring 2014 and should be completed
before year's end.
IMPACTS
1. Fiscal Impact — $11,100,000.
2. Proposed Funding Source - Yakima Air Terminal Capital Fund /FAA Grant- $10 million,
matched by $1.1 million of airport passenger fees. The interfund loan program will be used
as necessary.
3. Public Impact - Safer airport taxiways.
4. Personnel Impact - Manage the bidding process and resulting contract.
5. Required Changes in City Regulations or Policies — None.
6. Legal Constraints, if applicable — Follow FAA grant requirements.
7. Viable Alternatives - None, the grant has been awarded.
Strategic Initiatives • Section IV - 33
UTILITIES & ENGINEERING / ENGINEERING
2014 STRATEGIC INITIATIVE
IMPLEMENT RIGHT -OF -WAY / STREET CUT PROGRAM
BUDGETED
PROPOSAL
When commercial or government entities perform maintenance or construction activities in the
public right -of -way, they interfere with the public's ability to use that portion of the right -of -way,
create potentially dangerous obstacles to the traveling public, and often damage public
infrastructure.
Excavation of paved streets degrades and shortens the service life of streets. Over 17 nationwide
studies have provided conclusive evidence that no matter how well a utility cut is restored; there is
permanent damage beyond the area of the utility excavation. These excavations increase the
frequency and cost to the public of necessary street resurfacing, maintenance, and repair.
The City's current street cut permit fee of $100 and the associated patching of utility cuts completed
by utility companies do not compensate the City for long -term damage caused by utility cuts. A
street cut fee is an effective incentive for utility companies to coordinate their excavations with the
City's repaving schedule and generate funds to pay for road resurfacing that becomes necessary
due to long -term damage caused by cuts. This is particularly critical now that the City is making
significant investments to improve its streets.
By revising and updating chapter 8.72 of the Yakima Municipal Code, the Engineering Division is
proposing adoption of a comprehensive right of way encroachment and street cut program which
will enable the City to control the duration and extent that an entity encroaches in the street right of
way, improve the safety precautions taken to protect the public and the workers, and revise the
permitting fee structure so that the cost of the permit is commensurate with the size and duration of
the encroachment. Additionally, entities that cut City's pavement will not only have to repair their
damage, but they will have to pay a restoration fee that will be used for future road resurfacing and
replacement. Ultimately, the program goals are to reduce the amount of time that the traveling
public is inconvenienced by commercial activities in the right of way, dramatically improve work
zone safety, and protect the City's infrastructure. Based on the Utility and Engineering Director's
experience in other municipalities, the estimated revenue from this program is approximately
$150,000, which has been added to General Fund revenue.
The existing Traffic Engineering Division consists of the Streets & Traffic Operations Manager, a
Traffic Systems Analyst, and two Traffic Engineering Technicians, and is included in the Streets and
Traffic Engineering Fund. The Supervising Traffic Engineer position was eliminated in the 2010
budget as a cost cutting measure. The position was eliminated with the understanding that it
would need to be reinstated when the economy recovered and development returned. The present
workload is significant enough that it is difficult for the Streets and Operations Manager to provide
timely and detailed review and guidance of development applications, citizen requests, traffic
signal timing patterns, traffic data collections, and traffic safety analysis while still providing
adequate oversight to the street and traffic maintenance programs. Existing staff does not have the
training or expertise to take on most of these tasks. Other work that needs to be done that has been
34 — Section IV • Strategic Initiatives
deferred includes development of prioritized traffic safety and operations capital improvements
lists, update of traffic policies and standards, and a detailed annual review and analysis of high
accident locations. The new street encroachment program will also need staff to monitor and
enforce its application.
As much of this workload is tied more closely to Engineering than Street operations; the Supervising
Traffic Engineer will be paid for out of the Engineering Division of General Fund, and move under the
supervision of the City Engineer. The two Traffic Engineering Technicians are also being moved from
the Streets Fund to General Fund, as they will be directly supervised by the new position.
After the addition of the new position of $94,100 and the new revenue of $150,000, these changes
are estimated to result in net savings of $55,900 to General Government operations.
IMPACTS
1. Fiscal Impact -
General Fund
Reinstate 1.0 Supervising Traffic Engineer $94,100
Transfer 2.0 Traffic Tech II's from Streets 146,400
Add Street Cut Charge (150,000)
Net General Fund 90,500
Street Fund -- Transfer out 2.0 Traffic Tech II's (146,400)
Net Savings- General Government ($55,900)
2. Proposed Funding Source -
General Fund: Expenditures increased by $240,500, revenues by $150,000 for a net
increase of $90,500.
■ Street Fund: Expenditures reduced by $146,400
Note: Property Tax was reallocated from the Street Fund to General Fund to balance the
transfer of staff between the two funds.
3. Public Impact - Safer travel through work zones, fewer traffic delays caused by
construction and less construction related damage to public infrastructure
4. Personnel Impact - Add one FTE position
5. Required Changes in City Regulations or Policies - Adoption of the new Chapter 8.72 of
the Municipal Code. Communication of the new rules to the underground utility and
development community.
6. Legal Constraints, if applicable - None.
7. Viable Alternatives - Do nothing or revise portions of the proposed Chapter 8.72.
Resulting impacts would vary depending on severity of revisions, but doing nothing would
result in no improvement over how construction activities in the public right -of way are
currently handled.
Strategic Initiatives • Section 1V - 35
UTILITIES & ENGINEERING / ENGINEERING
2014 STRATEGIC INITIATIVE
PEDESTRIAN AND BICYCLE CONNECTIVITY PLAN
BUDGETED
PROPOSAL
Both the 2012 and 2013 Citizens surveys highlighted connectivity, or the ability to get around the
City by foot or bicycle, as an area of concern. In response to this concern the Engineering Division
will begin the process of creating a comprehensive connectivity network by identifying existing
sidewalks and bicycle lanes and starting the design of a connectivity master plan. This plan will
work in conjunction with the Parks & Recreation initiative to improve path and trail infrastructure
and the Safe Routes to School program.
IMPACTS
1. Fiscal Impact — $40,000.
2. Proposed Funding Source - Gas Tax /Arterial Street Fund.
3. Public Impact - Connectivity provides safer and more efficient routes of travel for school
children, pedestrians and bicyclists. Well planned sidewalks and bicycle lanes work in
conjunction with pathways and busses to provide people with efficient alternatives to
vehicular travel.
4. Personnel Impact - None, projects will be managed by existing Engineering staff.
5. Required Changes in City Regulations or Policies — None.
6. Legal Constraints, if applicable — None.
7. Viable Alternatives —
Do nothing. The existing voids in the City's sidewalk and bike lane network will
continue to make alternative forms of travel difficult and potentially risky.
■ Delay or revise starting the connectivity master plan design. This does nothing to
solve the connectivity problem, but would allow the 2014 budget for the initial
design work to be pushed into a later year.
36 - Section IV • Strategic Initiatives
UTILITIES & ENGINEERING / WASTEWATER
2014 STRATEGIC INITIATIVE
COMPLETE WASTEWATER COLLECTIONS MASTER PLAN
BUDGETED
PROPOSAL
The City began a systematic evaluation of both wastewater pipeline capacity analysis and condition
assessment in 2010 to determine short term and long term facility priorities for the wastewater
collection system. Akel Engineering is nearing completion of the capacity analysis of the system to
identify new lines that are necessary to provide service due to the continued growth of the
community. Existing trunk lines within the system have been identified as undersized. The City's
crew is inspecting sewer lines where its equipment is capable of collecting data. In addition, the
City has contracted with RedZone Robotics to provide closed caption television, sonar, and laser
data that will provide a condition assessment of the City's larger trunk lines. The condition
assessment has identified pipelines to be repaired or replaced.
The compilation of capacity and condition data will provide the information necessary for a
Wastewater Collections System Master Plan. The Master Plan will allow for construction
coordination of known wastewater deficiencies with street and other utility projects. Project
coordination prevents costly repairs being made to street surfaces and reduces the overall impact to
the community. It will also allow the City's wastewater infrastructure to be maintained and
expanded to ensure reliable wastewater capacity and service and accommodate future economic
and residential growth.
IMPACTS
1. Fiscal Impact - $100,000 has been funded through a transfer of revenue to the collections
capital fund 476 for 2014.
2. Proposed Funding Source - Wastewater Utility Revenues.
3. Public Impact - The public's infrastructure will be maintained and expanded to provide for
sustainable reliable service and accommodate future economic growth.
4. Personnel Impact - Work with consultant to provide required data.
5. Required Changes in City Regulations or Policies — None.
6. Legal Constraints, if applicable — None.
7. Viable Alternatives - The project has maximized the effective use of city resources with
consultant assistance to minimize the overall cost of the project. The collection of condition
assessment data in the large trunk lines would have required the purchase of equipment
and additional city staff. Contractors are able to collect and annotate data in the large lines
at a rate of $5.00 to $10.00 per liner foot depending on pipe size and deployment conditions.
An engineering consultant is under contract to provide capacity analysis of the system for
$206,400.
Strategic Initiatives • Section IV - 37
UTILITIES & ENGINEERING / WASTEWATER
2014 STRATEGIC INITIATIVE
INSTALLATION OF BIOSOLIDS DRYER
BUDGETED
PROPOSAL
The Wastewater Division will install a $7.9 million biosolids (sludge) dryer to produce a Class A,
exceptional quality biosolids product that can be sold as a soil amendment. The dryer will improve
the built environment by increasing Wastewater Treatment Facility reliability by utilizing bio -gas
produced by the new industrial wastewater treatment system and reducing $200,000 annually in
hauling and permitting expenses associated with Class B biosolids. The project also defers the
necessity for the installation of an $8 million to $10 million dollar Digester project, and reduces the
facility's carbon emissions. Funding for this project will come from two Washington State
Department of Ecology loans at 2.5% annual interest. Up to $4.7 million is budgeted to be spent in
2014. The second loan of $3.2 million will be used in 2015.
IMPACTS
1. Fiscal Impact —
The cost of the dryer facility is $7.9 million dollars.
Annual revenues from the fertilizer product are expected to be $60,000.
Savings of $200,000 in hauling and handling compared to the dried product uses.
O &M costs for the dryer process are estimated to be $50,000 annually.
City will significantly defer an $8 -10 million digester when the dryer is installed.
Annual debt service is estimated at $480,000.
Annual net operating costs are estimated at $270,000.
2. Proposed Funding Source - The Washington Department of Ecology is funding this project
through two loans which total $7.81 million at 2.5% interest. $324,734 of these loans is in the
form of forgivable principle.
3. Public Impact - A dryer will reduces the biosolids production to 1/5 of current levels and
produce soil amendments for City parks, golf courses, local agriculture, the Yakima Area
Arboretum and private use. Increasing public and private partnerships will minimize
handling costs.
4. Personnel Impact - The current personnel that operate the biosolids dewatering process are
expected to be able to operate the dryer facility concurrently without additional coverage.
5. Required Changes in City Regulations or Policies - External and intra -City sales
agreements of the Class A product will be required to be crafted and implemented.
6. Legal Constraints, if applicable - None.
7. Viable Alternatives - Option to register the facility as a Fertilizer Manufacturing Facility for
tax purposes.
38 - Section IV • Strategic Initiatives
UTILITIES & ENGINEERING / WASTEWATER
2014 STRATEGIC INITIATIVE
SALMON RECOVERY /RIPARIAN RESTORATION PROJECT
BUDGETED
PROPOSAL
The wastewater division is moving the City of Yakima Wastewater outfall in order to restore critical
floodplain environment for salmon recovery and Yakima Basin Integrated Plan implementation.
This project incorporates elements of the City of Yakima Strategic and Business Plans by investing
in the City's appearance and built environment, improving trails, involving the public, and creating
partnerships. This is a multi benefit project that will improve water quality, reduce flood hazards,
enhance salmon and steelhead runs and foster growth by allowing upstream land to come out of
flood insurance maps.
IMPACTS
1. Fiscal Impact - Estimated $1,800,000 to $1,500,000 of the construction costs are grant
funded. The Wastewater Division will have short term costs for engineering, permitting
and cost share for grants. Project will need ongoing maintenance to keep up appearance of
site.
Long run fiscal savings will come from less flood damage repair to infrastructure and
improved water quality. Increased salmon and steelhead habitat will promote recreation
related economy.
2. Proposed Funding Source - Wastewater division capital fund and revenue from federal,
state and local sources. Additionally, the City is partnering with many different groups to
conduct volunteer clean up and tree planting on the site.
3. Public Impact - Temporary Greenway closures or detours during construction phases.
Increase stability of trail in the long run. Greenway and new nature trail will surround a
restored natural area after project completion.
4. Personnel Impact - Wastewater staff are expected to help with long term maintenance of
the site.
5. Required Changes in City Regulations or Policies - Change easement for Greenway path.
6. Legal Constraints, if applicable - Grants will require maintenance consistent with original
grant applications and agreements. Project requires approval of an extended mixing zone
from Department of Ecology (currently under review).
7. Viable Alternatives - Several alternative were considered that were more costly, came with
higher risk, and not consistent with other City strategic plan elements.
Strategic Initiatives • Section IV - 39
UTILITIES & ENGINEERING / STORMWATER
2014 STRATEGIC INITIATIVE
IMPLEMENT INTEGRATED STORMWATER PLAN
BUDGETED
PROPOSAL
The City Stormwater program has completed a Stormwater Collection System Master Plan that
identified $672 million in capital improvement needs for improving this sector of the built
environment. The top priority list of projects could cost as much as $18.7 million dollars.
Improved stormwater conveyance and retention is necessary to maintain NPDES permit
compliance and to mitigate flood hazards. Additionally, flood control work by Yakima County
identified specific project needs related to stormwater retention in the Boise Cascade Mill site and
Gateway Shopping Center.
The Stormwater capital budget has $600,000 available in 2014 to start implementing the master
plan. Integrating stormwater projects into other city initiatives creates the possibility of significant
cost savings. For example, incorporating "low impact development" features into downtown
planning, North 1st street, or the Mill Site re- development could add value to these projects with
improved drainage that incorporates improving the appearance and function of our built
environment.
IMPACTS
1. Fiscal Impact - $600,000 in 2014. Implementing the stormwater plan is estimated to cost
$672 million over 20 years. Integrating stormwater work with ongoing initiatives can help
reduce or off -set costs significantly.
2. Proposed Funding Source - City stormwater utility revenue, grants from Washington
Department of Ecology, Yakima Basin Integrated Plan, and public and private partnerships.
3. Public Impact - An improved built environment also improves public safety, public trust,
and economic development.
4. Personnel Impact - An integrated approach requires coordination between Stormwater,
Economic Development and Planning personnel. Increased training /awareness on
stormwater related "Low Impact Development" or other efforts for incorporating
stormwater management into development is necessary.
5. Required Changes in City Regulations or Policies - Stormwater staff need to stay
informed about opportunities with North 1st Street improvements, Boise Mill site,
downtown and trails and park efforts.
6. Legal Constraints, if applicable - None.
7. Viable Alternatives - Treating stormwater at the end of pipes with mechanical and
chemical treatment is an alternative, but the costs are much higher.
40 - Section IV • Strategic Initiatives
UTILITIES & ENGINEERING / STORMWATER & WASTEWATER
2014 STRATEGIC INITIATIVE
UPDATE STORMWATER, WASTEWATER AND INDUSTRIAL WASTEWATER
RATE STUDIES
BUDGETED
PROPOSAL
The City of Yakima is required to complete a utility rate study that will determine the billing rates
required to provide utility services. The existing Wastewater and Stormwater Rate Ordinances
expire at the end of 2014. The study, which will be conducted in 2014, will also initiate rates for the
City's recently built industrial wastewater treatment process. The City will seek the services of a
third party, financial consultant to complete analysis of all three utilities and recommend a rate
structure for the next three years. The study will include a forecast of operating revenues,
expenditures, compliance with debt service and cash reserve policies to provide a rationale and fair
rate revenue strategy and establish costs for our utility customers.
On top of being mandated, the rate study allows the City to ensure public trust and accountability
with its rate structures. The study will document the sound financial practices the City uses to
maintain the built environment and encourage economic development. The food and drink
processing industry is a diversifying sector of the economy as large scale production is being
augmented with smaller scale beer, wine and spirits production. A transparent evaluation of
industrial wastewater rates is necessary information for potential new food and drink production in
Yakima.
IMPACTS
1. Fiscal Impact — $110,000.
2. Proposed Funding Source - Stormwater ($45,000) and Wastewater ($65,000) Funds.
3. Public Impact - A rate analysis with a three year proposed rate provides for a stable
operating and capital budget. Maintaining the built environment is necessary to meet
economic growth and expectations of the rate payers. Rate studies provide for establishing
equity for utility customers and assign appropriate cost sharing of operations and capital
projects.
4. Personnel Impact — None.
5. Required Changes in City Regulations or Policies — Council approval of an ordinance
adopting a proposed rate structure for 2015 - 2017.
6. Legal Constraints, if applicable - Minimum Debt Service coverage and regulatory
compliance.
7. Viable Alternatives - The rate study will include a review of viable funding options to meet
capital and operating costs for the three utilities.
Strategic Initiatives • Section IV - 41
PUBLIC WORKS / PARKS & RECREATION
2014 STRATEGIC INITIATIVE
REINSTATE ONE ADMINISTRATIVE ASSISTANT
BUDGETED
PROPOSAL
In August 2009, the Parks and Recreation Administrative Associate retired. This was the time of
budget reductions and the position went unfilled for 16 months. Additional cuts were needed and
due to reductions in the Planning Division a planner position was going to be eliminated. It was
suggested at that time that the Planner position be split .6 FTE in Planning and .4 FTE in Parks and
Recreation. At that time, the Parks and Recreation Division was beginning the process of updating
the 2012 - 2017 Parks and Recreation Comprehensive Plan, and the assistance of a Planner became a
valuable asset to Parks and Recreation in addition to some of the other duties that were performed
by the Parks and Recreation Administrative Associate. The Parks and Recreation Division is
proposing to reinstate the Parks and Recreation Administrative Associate position as permanent
full time to maintain the highest level of service to the community.
The Planner position will revert 100% to General Fund. Note: with other turnover in the Planning
Division along with the reduction in medical rates, Planning's 2014 salary and benefits budget is
virtually unchanged from 2013.
IMPACTS
1. Fiscal Impact - $59,500.
2. Proposed Funding Source - Parks and Recreation Fund - Property Tax allocation.
3. Public Impact - Reinstatement of the Parks and Recreation Associate position will assist the
Parks and Recreation Division in the ability to respond to citizen inquiries in a timely
manner, increase the ability to create reports and publications, seek grants and donations for
park projects and programs, assist with park planning, provide administrative support for
the Parks and Recreation Commission and many other duties.
4. Personnel Impact - Increase staffing in Parks and Recreation Administration by .6 FTE.
5. Required Changes in City Regulations or Policies - None.
6. Legal Constraints, if applicable - None.
7. Viable Alternatives - Leave position unfilled or replace vacancy with a part time employee.
42 - Section IV • Strategic Initiatives
PUBLIC WORKS / STREETS
2014 STRATEGIC INITIATIVE
IMPLEMENT PHASE I OF NORTH 1ST STREET PLAN
BUDGETED
PROPOSAL
In 2013, the City Council authorized a landscape architect to prepare a final design for the
landscape and pedestrian environment of the North First Street Revitalization Project, Phase 1
element (I -82 to "N" Street). Phase 1 will include selecting a preferred alternative from a limited
choice of options. In 2014, a civil engineering firm will be selected to prepare construction
documents for the project design which will include the design for undergrounding of power and
other utilities. Construction drawings and plans should be completed in the summer of 2014.
Project construction is expected in early 2015 and will be funded by a Surface Transportation
Program grant of $2,718,000. The grant has a 13% match, so the total project will be $3,124,000, with
the match being provided by Arterial Street Gas Tax. The 2014 budget includes up to $1.2 million to
be expended in 2014 —the balance of $1,924,000 is slated to be spent in 2015.
In 2014, the City will continue seeking funding for additional phased construction of the North First
Street Revitalization Project (from "N" Street to Lincoln Avenue). Finally, police, fire, and code
enforcement will continue to ensure life and public safety and sign violations and issues are
addressed along the North First Street Corridor.
IMPACTS
1. Fiscal Impact —
Description 2014 2015 Total
STP Grant $1,038,000 $1,680,000 $2,718,000
13% Local Match Gas Tax 162,000 244,000 406,000
Total Project Expense $1,200,000 $1,924,000 $3,124,000
2. Proposed Funding Source - Arterial Street Fund — grants and local match
3. Public Impact - Ultimately an inviting, aesthetically pleasing entrance into our community.
4. Personnel Impact - Project and Grant Management.
5. Required Changes in City Regulations or Policies — None.
6. Legal Constraints, if applicable — Fulfill grant requirements.
7. Viable Alternatives - None - grant is approved.
Strategic Initiatives • Section IV - 43
PUBLIC WORKS / STREETS
2014 STRATEGIC INITIATIVE
ROAD IMPROVEMENTS
BUDGETED
PROPOSAL
The City's 802 lane miles of roads have an average Paving Condition Index (PCI) score of 54. Based
on a 100 -point scale, the City's current road conditions are poor. Compounding this situation is the
fact that while 3% of Yakima's roads are currently classified as failed, 23% or (185 lane miles) are
projected to attain a failed classification by 2020 if not rehabilitated soon. The Yakima public is well
aware of this, given almost 80% of the 2013 Citizen Survey respondents rate street repairs as fair or
poor. Additionally, 72% of voters supported a City Charter amendment in August 2013 requiring
the City to invest at least $2 million annually on the restoration or reconstruction of Yakima streets.
The cost to rehabilitate one lane mile of road with a grind and overlay is approximately $180,000.
The cost to reconstruct a road after it has failed is approximately $600,000, or 300% more than to
grind and overlay it. A pay -as- you -go $2 million dollar annual cash committed approach would
enable the City to grind and overlay approximately 11 lane miles annually; assuming road
construction prices remain static. This pace of road rehabilitation is insufficient to prevent the
projected failure of at least 60% of the 185 lane miles of road projected to fail by 2020.
In 2013, the City Council appropriated $375,000 for the first annual payment on a $5 million, 15-
year loan to grind and overlay 28 lane miles of road. Public response to this work has been very
positive.
Staff proposes building on the 2013 road improvements and taking advantage of excellent road
rehabilitation pricing with an aggressive 2014 road rehabilitation plan based on issuing a 10- year
term bond of $16 million dollars to grind and overlay 92 lane miles of arterial streets and residential
streets, such as Summitview, Lincoln, Washington, 1st Street, Nob Hill, Tieton, 19th Avenue and 2nd
Street. This aggressive plan will prevent having to reconstruct these critical streets at a much
higher cost and will extend their useful life by 10 to 15 years.
The annual debt service on a 10 -year term, $16.5 million dollar road rehabilitation bond is
approximately $2,000,000, which is currently budgeted in a debt service fund. This investment
would meet the minimum City Charter obligation to spend $2 million annually on road
rehabilitation or reconstruction.
Given the short time span to prevent the failure of 185 lane miles of road by 2020, the 2014 budget
includes this plan to grind and overlay 92 lane miles of road in 2014, and identify additional
resources in the near future to address the additional 93 lane miles of arterial, collector, and
residential streets that are projected to fail by 2020.
A prioritized listing of required street improvements follows, along with color -coded listings
(including the current pavement condition index) of improvements constructed with the $5 million
bond issue in 2013; the streets scheduled to be constructed with the $16.5 million in 2014; and the
streets that will still need to be constructed. The final attachment is a map of these three lists.
44 — Section IV • Strategic Initiatives
IMPACTS
1. Fiscal Impact - General Fund is transferring $2 million to a debt service fund to fulfill the
requirements of the Charter amendment. $500,000 is being covered by a redirection of a 5%
Cable TV utility tax that was originally levied to fund debt service on the building of the
Law and Justice Center in 1993. That 20 year bond issue will be paid in full in 2013, and the
revenue is being moved into General Fund to help support this initiative.
Debt Service $2,000,000
Road Improvements 16,500,000
Total Project $18,500,000
2. Proposed Funding Source - Councilmanic General Obligation Bonds, $16,500,000 in a new
Street Capital Fund. Related debt service of $2 million is coming out of General Fund to a
debt service fund.
3. Public Impact - Reinvestment in infrastructure to bring 92 lane miles of roads back into
good condition.
4. Personnel Impact - Design work, bid development, contract management.
5. Required Changes in City Regulations or Policies - A new Street Capital Fund is being
established to account for projects related to the Charter amendment.
6. Legal Constraints, if applicable - Council will need to approve a bond ordinance in order
to issue debt.
7. Viable Alternatives - Do some combination of bonding and "pay as you go ". This delays
the improvements.
Strategic Initiatives • Section 1V - 45
rn
1
2014 - 2015 Grind and Overlay Cost /SF: $3.00
0
Accum.
Lane Lane
U? Priority Street From To PCI Cost Accum. $ Miles Miles ADT
1 Nob Hill Boulevard * 3rd Avenue Bridge 16 $551,580 $551,580 3.2 3.2 26,775
6 4• 2 40th Avenue * Englewood Fruitvale 36 $780,000 $1,331,580 4.5 7.6 27,600
3 16th Avenue * Madison SR 12 10 $390,000 $1,721,580 2.2 9.9 18,734
�. 4 Walnut * 7th Avenue 1st Street 21 $900,000 $2,621,580 5.2 15.0 17,550
5 Fruitvale Boulevard * 21st Avenue 40th Avenue 15 $1,596,000 $4,217,580 9.2 24.2 10,525
n 6 Tieton Drive * 16th Avenue 32nd Avenue 30 $696,960 $4,914,540 4.0 28.2 16,800
7 Tieton Drive * 40th Avenue 48th Avenue 24 $362,250 $5,276,790 2.1 30.3 15,680 0
8 Washington Avenue * 16th Avenue 1st Street 37 $1,533,600 $6,810,390 8.8 39.1 16,600
9 Summitview Avenue * 56th Avenue 62nd Avenue 31 $356,400 $7,166,790 2.0 41.1 17,750 1 '3 d
10 3rd Avenue * Walnut D Street 26 $604,860 $7,771,650 3.5 44.6 11,350 y p
11 Lincoln Avenue 16th Avenue 10th Street 43 $1,186,560 $8,958,210 6.8 51.4 14,830 n t
12 MLK Boulevard 7th Avenue 10th Street 40 $1,002,000 $9,960,210 5.8 57.2 10,777 0
13 Nob Hill Boulevard * 32nd Avenue 48th Avenue 36 $893,250 $10,853,460 5.1 62.3 16,205 Z A
14 Fruitvale Boulevard * 21st Avenue 11th Avenue 27 $672,000 $11,525,460 3.9 66.1 13,625 y
15 Mead Avenue * 10th Avenue 10th Street 28 $1,058,640 $12,584,100 6.1 72.2 10,510 CA Z
16 Yakima Avenue * 12th Avenue 16th Avenue 31 $243,600 $12,827,700 1.4 73.6 10,780 y
17 Lincoln Avenue * 24th Avenue 32nd Avenue 36 $327,000 $13,154,700 1.9 75.5 10,300
18 6th Street * Pacific Yakima 24 $660,000 $13,814,700 3.8 79.3 4,730
19 6th Street * Yakima 'H' Street 35 $600,000 $14,414,700 3.4 82.7 7,600
20 5th Avenue * Walnut Yakima 17 $184,830 $14,599,530 1.1 83.8 12,050
21 2nd Street * MLK Blvd. 'I' Street 21 $525,000 $15,124,530 3.0 86.8 1,000
22 4th Avenue * Division MLK Blvd. 19 $711,000 $15,835,530 4.1 90.9 1,000
23 19th Avenue * Chestnut MacClaren 28 $180,000 $16,015,530 1.0 91.9 1,000
* Could fail if not replaced by 2020
PRINCIPAL ARTERIALS, MINOR ARTERIALS AND COLLECTORS
CONSTRUCTED IN 2013
Name From To PCI
Nob Hill Boulevard * 100 1000 29
1st Street * 1800 (Mead) 1400 (Nob Hill) 37
40th Avenue * 600 (Tieton) 130 (Summitview) 30
16th Avenue * 600 (Englewood) 1100 (Madison) 38
Tieton Drive* 4000 3200 27
Summitview Avenue * 5600 4800 29
40th Avenue * 1100 (Nob Hill) 600 (Tieton) 37
Fair Avenue * 1800 (Mead) 1400 (Nob Hill) 17
Washington Avenue* 100 120 36
Fair Avenue * 1400 (Nob Hill) 900 (Pacific) 33
Walnut Street 100 (1st St) 300 (3rd St) 40
Walnut Street 300 (3rd St) 600 (6th St) 40
64th Avenue * 2200 (Occidental) 2000 (Washington) 32
Legend
* Could fail if not replaced by 2020
Constructed in 2013
Scheduled to be constructed ($16 Million)
Remaining to be constructed
Strategic Initiatives • Section IV — 47
SCHEDULED TO BE CONSTRUCTED ($16 MILLION)
Name From To PCI
Nob Hill Boulevard * 300 100 16
40th Avenue * 600 (Englewood) 1220 (Fruitvale) 36
16th Avenue * 1100 (Madison) CL (SR 12) 10
Nob Hill Boulevard * 4800 3200 36
Walnut Street * 300 (3rd Ave) 100 (1st St) 12
Washington Avenue * 16th Avenue 1st Street 37
Summitview Avenue * 6200 5600 31
Tieton Drive * 4800 4000 24
Tieton Drive * 3200 1600 30
Fruitvale Boulevard * 4000 3000 10
5th Avenue * 200 (Walnut) 10 (Yakima) 17
Martin Luther King Blvd * 100 1000 16
Lincoln Avenue * 1600 700 33
Walnut Street * 700 (7th Ave) 500 (5th Ave) 11
Fruitvale Boulevard * 3000 2100 21
Mead Avenue * 10th Avenue 10th Street 28
Yakima Avenue * 1600 1200 31
3rd Avenue * 200 (Walnut) 10 (Yakima) 19
Lincoln Avenue 700 200 43
Lincoln Avenue * 3200 2400 35
Walnut Street 500 (5th Ave) 300 (3rd Ave) 51
Lincoln Avenue 400 1000 43
6th Street * 900 (Pacific) 10 (Yakima) 24
Lincoln Avenue 200W 400E 52
3rd Avenue * 10 (Yakima) 1320 (D St) 30
Martin Luther King Blvd 700 100 69
Fruitvale Boulevard * 2100 1100 27
6th Street * 10 (Yakima) 720 (H St) 35
Legend
* Could fail if not replaced by 2020
Constructed in 2013
Scheduled to be constructed ($16 Million)
Remaining to be constructed
48 — Section IV • Strategic Initiatives
REMAINING TO BE CONSTRUCTED
Name From To PCI
16th Avenue 1100 (Nob Hill) 10 (Yakima) 55
1st Street 900 (I St) 1904 (C.L.) 51
16th Avenue 10 (Yakima) 600 (Englewood) 59
Summitview Avenue 4800 4000 46
Tieton Drive * 7200 6400 23
1st Street 2415 (Miners) 1800 (Mead) 51
1st Street 1400 (Nob Hill) 10 (Yakima) 44
Tieton Drive * 6400 5600 34
Nob Hill Boulevard 1000 1800 41
Nob Hill Boulevard 5200 4400 50
1st Street 10 (Yakima) 900 (I St) 68
• 72nd Avenue * 2103 (Coolridge) 1900 (Washington) 27
Summitview Avenue 3200 2300 45
Summitview Avenue 4000 3200 49
Lincoln Avenue * 6600 5600 11
24th Avenue 1820 (Washington) 1100 (Nob Hill) 32
I Summitview Avenue 2300 1400 54
G Street * 100 (1st St) 300 (3rd St) 18
32nd Avenue * 200 (Summitview) 650 (Englewood) 23
64th Avenue * 2600 (Ahtanum) 2300 (Occidental) 32
Englewood Avenue * 5600 4800 36
40th Avenue 4000 (Washington) 1100 (Nob Hill) 53
• Ahtanum Road 2600 (26th Ave) 1600 (16th Ave) 53
G Street * 300 (3rd St) 600 (6th St) 23
Englewood Avenue * 7400 6600 23
Summitview Avenue 1400 700 62
Pecks Canyon Road * 5300 (Scenic Dr) City Limits 27
Lincoln Avenue 4000 3200 53
Scenic Drive * 58th Ave 53rd Ave 34
Castlevale Road * 2800 2400 36
Viola Avenue * 1000 (Fair Ave) 1800 (18th St) 34
Scenic Drive * 6600 5800 37
32nd Avenue 600 (Tieton) 200 (Summitview) 53
Viola Avenue 1800 (18th St) 2100 (Rudkin Rd) 47
Legend
* Could fail if not replaced by 2020
Constructed in 2013
Scheduled to be constructed ($16 Million)
Remaining to be constructed
Strategic Initiatives • Section IV — 49
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PUBLIC WORK / TRANSIT
2014 STRATEGIC INITIATIVE
TRANSIT CENTER STAFFING CHANGES
BUDGETED
PROPOSAL
Staff the Downtown Transit Center with permanent part -time DA -II employees (up to 3 /4 time each
as needed) to perform ticket and pass sales and provide transit information to the patrons,
replacing the four part -time temporary contract employees.
This proposal will also increase the two part -time Vehicle Cleaners from 75% to 90% (as needed) by
reassigning work previously performed by a cleaning /maintenance contractor to our existing
cleaning staff in order to reduce costs. The workload will increase due to maintenance of transit's
assets (transit center, shelters, bus sign, benches, etc).
For the past several years, Yakima Transit has contracted for employment services through Entrust
(employment service agency). Due to issues related to customer service and poor performance,
Yakima Transit did not renew the employment service contract that ended on June 30, 2013. From
an employment/business analysis, it was determined that several issues (lack of customer service,
control over the contractor's employees, and daily inconsistencies with the cash register) could be
resolved by reorganizing the way Yakima Transit provided their service. The plan will relocate two
existing employees (part of the time) and hire two part -time employees to replace the four part -time
employees that the employment agency hired to provide the service. This plan will also allow
Yakima Transit to assign transit administrative work to staff at the transit center during down times
and provide phone and other assistance to Yakima Transit's dispatchers.
IMPACTS
1. Fiscal Impact — $77,800.
2. Proposed Funding Source — Transit Operating Fund /Local Sales Tax.
3. Public Impact — Preserve the ability to serve the public more efficiently and productively at
Yakima Transit's Downtown Transit Center.
4. Personnel Impact — Up to 1.5 FTE's at DA -II level & up to 0.3 FTE at Vehicle Cleaner level.
The two DA -II's are currently temporary employees working at the Transit Center. They
were hired to replace employees working for a temporary employment agency. By
increasing vehicle cleaner hours, we are able to reduce costs associated with contracted
cleaning services at the transit center and along routes.
5. Required Changes in City Regulations or Policies — None.
6. Legal Constraints, if applicable — None.
7. Viable Alternatives — Continue to operate as is and postpone streamlining staff positions to
a later date.
Strategic Initiatives • Section IV — 51
PUBLIC WORK / TRANSIT
2014 STRATEGIC INITIATIVE
PURCHASE 3 HEAVY DUTY REPLACEMENT BUSES
BUDGETED
PROPOSAL
Purchase three (3) heavy -duty low -floor buses, estimated to cost $430,000 each.
Buses typically have a 12 -year useful life. Seven (7) of Yakima Transit's twenty -eight (28) buses are
past the 12 -year period. Three (3) more have not made it to that 12 -year period and also need to be
replaced. Buses are disposed of when the vehicle is either beyond the 12 -year period and spends a
lot of time in the shop, or sooner if the cost to repair the vehicle outweighs the potential benefits of
repairing the vehicle. Two (2) of the seven (7) buses are 22 years old; the other five (5) are 18 years
old. The other three (3) that didn't make it to the 12 -year period are 11 years old. At maximum
service, Yakima Transit operates 19 buses, additional vehicles are necessary to maintain an
adequate operational fleet. Buses will be replaced as soon as practical; however, at this time,
Yakima Transit needs to keep the older buses to maintain an adequate spare ratio to fill in when
other vehicles are taken out off the road for service.
IMPACTS
1. Fiscal Impact — $1,290,000.
2. Proposed Funding Source — Transit Capital Fund /Accumulated reserves of Local Sales Tax.
3. Public Impact — Allows Yakima Transit to maintain an adequate amount of operational
vehicles in stock.
4. Personnel Impact — None.
5. Required Changes in City Regulations or Policies — None.
6. Legal Constraints, if applicable — FTA has stringent rules regarding the number and
condition of the transit fleet.
7. Viable Alternatives — Procure used buses that are less expensive, yet costly to maintain and
do not provide the same level of reliability.
52 — Section IV • Strategic Initiatives
PUBLIC WORK / TRANSIT
2014 STRATEGIC INITIATIVE
DIAL -A -RIDE (DAR) REPLACEMENT PLAN
BUDGETED
PROPOSAL
Purchase eight (8) paratransit minivans.
DAR vehicles typically have 5 to 7 years of useful life. Twenty (20) of Yakima Transit's 39
paratransit vehicles are past the seven year mark. The vehicles being replaced include four 1999
cutaways, three 2006 Taurus, and one 2007 Ford Taurus. All of the cutaways are currently being
used as parts vehicles to keep other vehicles in service. At maximum service, Medstar (Dial A Ride
service provider) uses 34 vehicles. Without the new vehicles, Yakima Transit may miss trips
violating ADA /FTA regulations.
WSDOT has allocated the grant funding for Yakima Transit for the purchase of these vehicles.
IMPACTS
1. Fiscal Impact — $392,000.
2. Proposed Funding Source — Transit Capital Fund: State grant $313,600 (80 %) and local sales
tax $78,500 (20 %).
3. Public Impact — Allows Yakima Transit to replace the DAR vehicles that are well past their
useful life and must be replaced.
4. Personnel Impact — None.
5. Required Changes in City Regulations or Policies — None.
6. Legal Constraints, if applicable — None.
7. Viable Alternatives — There are no other reasonable alternatives that could be cost effective.
Yakima Transit could refurbish many of the vehicles at a much higher cost than Yakima
Transit's grant match rate. Four of the vehicles (sedans) were not as feasible to use in the
service and Yakima Transit has switched them over to function as relief, administration
vehicles instead of purchasing new admin vehicles. Several vehicles are being parted out
and require substantial repairs to make them roadworthy.
Strategic Initiatives • Section IV — 53
PUBLIC WORK / EQUIPMENT RENTAL
2014 STRATEGIC INITIATIVE
FLEET VEHICLE ADDITIONS & REPLACEMENTS
BUDGETED
PROPOSAL
Replace or increase the Equipment Rental fleet per the included listing below. Fire, Police and
Transit rolling stock are managed separately by the respective departments. Vehicle replacement is
determined by maintenance costs, usage, and technical service need.
2014 Fund
Division Description Replacing Budget Total
Engineering Toyota Tacoma Ext Cab 4X2 PU ER2248 $27,000 $27,000
Street & Traffic Ford 1 Ton Crew Cab F350 w/Flatbed ER3098x 45,000
Front Loader s/4 -1 Multi- Purpose Bucket /Coupler ER6063 175,000 220,000
Water & Irrigation 1/2 Ton PU Ext Cab 4X2 w /Cab High Canopy ER2224 30,000
Toro Dingo TX 525 w/Trailer Add 44,000
Ford/Utilitmaster Step Van ER3158 100,000 174,000
Refuse Automated Sideloading Refuse Truck ER3151 315,000
Automated Sideloading Refuse Truck ER3168 315,000 630,000
Wastewater 1/2 Ton PU Ext Cab 4x2 w /Service Body Add 40,000
Ford Transit Connect ER2265 40,000
Ford Transit Connect ER2266 40,000
Combination Sewer Cleaner ER3071X 450,000 570,000
Total $1,621,000
The chart below details the condition of the vehicles and equipment being replaced:
E/R Model
Division Description Number Year Condition /Application
Engineering GMC Sonoma Pickup 4X4 ER 2248 2001 Poor - 13 years old, 107,000 miles
Streets Chevrolet 1 Ton Truck ER 3098X 1994 Poor - 20 years old, 116,000 miles
Caterpillar 928G Loader ER 6063 1998 Poor - 16 years old, 6,500 hours ( *)
Water Dodge Ram Quadcab Pickup 4X2 ER 2224 2001 Poor -13 years old, 120,000 miles
Workhorse /Grumman Step Van ER 3158 2002 Poor - 12 years old, 103,000 miles
Refuse Automated Sideloader Refuse Truck ER 3151 2002 Poor - 12 years old, exceeds life expectancy
Automated Sideloader Refuse Truck ER 3168 2004 Poor - 10 years old, exceeds life expectancy
Wastewater GMC Sonoma Pickup ER 2265 2002 Poor - 12 years old, exceeds life expectancy
Ford Ranger Supercab Pickup 4X4 ER 2266 2002 Poor - 12 years old, exceeds life expectancy
International Truck w/Vactor ER 3071X 1988 Poor - 26 years old, obsolete
( *) 6,500 hours is equivalent to 195,000 to 325,000 miles
54 — Section IV • Strategic Initiatives
IMPACTS
1. Fiscal Impact — $1,621,000 from the accumulated reserve dedicated for this purpose.
2. Proposed Funding Source — The Equipment Replacement Fund for replacements.
3. Public Impact — Delaying purchase would ultimately reduce ability to provide respective
services to the community and shift operating costs to Fleet Maintenance.
4. Personnel Impact — None.
5. Required Changes in City Regulations or Policies — None.
6. Legal Constraints, if applicable — None.
7. Viable Alternatives — Delaying these purchases is an option, though excessive maintenance
costs would shift expense to Fleet Maintenance budget.
Strategic Initiatives • Section 1V — 55
PUBLIC WORK / EQUIPMENT RENTAL
2014 STRATEGIC INITIATIVE
DIESEL PARTICULATE FILTER CLEANING EQUIPMENT
BUDGETED
PROPOSAL
Purchase and install diesel particulate filter cleaning equipment allowing the City to clean DPF's in
house, replacing expensive and time consuming outsourced services.
IMPACTS
1. Fiscal Impact - All diesel powered trucks purchased after 2007 are required to have DPF's
in the exhaust system, mandated by the Environmental Protection Agency of the Federal
Government.
Currently DP Filters are cleaned by sending to outside vendors. Costs are expensive and
downtime is experienced while the filters are in process. Extra spare filters are high cost,
thereby increasing spare parts inventory costs.
Estimated cost of equipment delivered to Yakima, installed, ready to operate is $85,000.
2. Proposed Funding Source - Funding will be generated over time, in the M &O Budget of the
Equipment Rental Division from charges to the divisions requiring the service.
In addition, a search is being conducted for funding through state or Federal grant
programs.
3. Public Impact - The public sector will benefit by improved air quality by cleaner exhaust
emissions from diesel powered vehicles.
4. Personnel Impact - Employees will be able to provide lower cost and timelier maintenance
services.
5. Required Changes in City Regulations or Policies - The City is obligated to conform to
Federal Mandates with regard to Air Quality Standards governing diesel engine emissions.
6. Legal Constraints, if applicable - City must conform to Federal mandates.
7. Viable Alternatives - Continuing "as is" is not a viable alternative due to excessive costs
and extended turnaround time for repairs.
56 - Section IV • Strategic Initiatives
PUBLIC WORKS / ADMINISTRATION
2014 STRATEGIC INITIATIVE
REINSTATE ONE DEPARTMENT ASSISTANT II
BUDGETED
PROPOSAL
In August 2012, the employee holding the Public Works Department Assistance II stationed at the
service counter resigned. The permanent full -time position was then eliminated from the 2013
budget as a cost containment measure. Because of the continuing workload, a temporary employee
has been in that position. Staff is proposing that the permanent position be reinstated.
IMPACTS
1. Fiscal Impact — $46,100.
2. Proposed Funding Source - Public Works Administration - PW Administration charges to
divisions housed at that facility.
3. Public Impact - Reinstatement of the Public Works DA II position will increase continuity
and quality of customer service and also provide support to Public Works Department staff.
The DA II position interacts with the general public in person and on the phone regarding
many different issues. This position regularly answers questions regarding Water and
Irrigation, Transit, Parks and Recreation, Streets and Refuse. This position serves as a
cashier for bus pass purchases and Parks and Recreation program registrations and facility
reservations. In addition, this position provides administrative support to the Public Works
Managers and Supervisors and other staff.
4. Personnel Impact - Utilize a full time employee for the DA II position.
5. Required Changes in City Regulations or Policies — None.
6. Legal Constraints, if applicable — None.
7. Viable Alternatives - Leave position filled by temporary employees.
Strategic Initiatives • Section IV - 57
PUBLIC WORKS / ADMINISTRATION
2014 STRATEGIC INITIATIVE
IMPROVEMENTS TO SOUTHEAST COMMUNITY CENTER
BUDGETED
PROPOSAL
The Southeast Community Center is another City -owned facility in need of upgrades. While the
City pays a fee for management and operations of the facility, it has contributed minimally toward
facility improvements. The existing restrooms are 40 years old, in disrepair, and are beginning to
fail. Staff proposes that the City provide the supplies and materials needed for the remodel along
with major plumbing and electrical contractor costs, while the Opportunities Industrialization
Center (OIC), the facility's contracted operator, has agreed to contribute the construction labor
portion of the updated services. The total renovation is estimated to cost over $100,000 if contracted
out. The cost for supplies and materials is estimated at $45,000, or less than half of the total cost.
IMPACTS
1. Fiscal Impact — $45,000.
2. Proposed Funding Source — Parks & Recreation Fund.
3. Public Impact - Improved Community Center.
4. Personnel Impact - Coordinate with OIC to accomplish the needed improvements.
5. Required Changes in City Regulations or Policies — None.
6. Legal Constraints, if applicable — None.
7. Viable Alternatives — None.
58 - Section IV • Strategic Initiatives
Section V - Exhibits
Three -Year Budget Comparison
What You Pay and What You Get
Supplemental Information
THREE -YEAR BUDGET COMPARISON - 2014 BUDGET BY CITY FUNCTIONAL GROUPING
2012 2013 2013 2014 2014 2014 2014 2014 2014
Actual Amended Year -End Preliminary vs 2013 Projected Use of Fund Beginning Est. Ending
Expenditures Budget Estimate Budget Estimate Revenue Balance Fund Balance Fund Balance
General Government
City Council $236,321 $284,751 $275,801 $282,076 2 3%
City Manager 357,542 366,555 371,626 372,684 0.3%
State Examiner 105,946 110,000 110,000 110,000 0 0%
Records 520,503 461,070 455,179 563,922 23 9%
Financial Services 1,437,305 1,478,418 1,463,365 1,488,836 1.7%
Human Resources 437,905 459,969 458,094 513,151 12 0%
Legal 1,087,024 1,287,573 1,273,983 1,314,323 3.2%
Municipal Court 1,173,262 1,384,004 1,345,450 1,344,118 (0 1 %)
Purchasing 503,721 541,244 542,991 549,369 1 2%
Hearing Examiner 22,475 26,000 27,500 31,000 12.7%
Environmental Planning 550,322 534,116 529,622 458,481 (13 4 %)
Code Administration 1,164,991 1,389,047 1,387,163 1,537,371 10.8%
Indigent Defense 487,601 833,500 540,500 600,500 11 1%
Economic Development 42,485 457,216 454,640 486,733 7.1%
Gang Free Initiative - - - 333,105 n/a
Police 24,470,231 25,880,899 25,160,522 26,057,587 3 6%
c` Fire 9,419,820 9,909,477 9,789,746 10,167,258 3.9%
co Police Pension 1,264,681 1,297,225 1,345,925 1,343,325 (0 2 %)
p Engineering 659,375 686,172 662,004 1,109,632 67.6%
ba
City Hall Maintenance 320,121 372,923 361,918 407,885 12.7%
oq Information Systems 2,216,953 2,435,038 2,291,558 2,912,612 27 1%
co
Utility Services 1,281,779 1,324,950 1,320,889 1,316,181 (0.4 %)
P
Intergovernmental 241,669 261,549 261,049 244,031 (6 5 %)
Nonrecurring Expenses - (730,000) - (950,000) n/a
-• Transfers 3,485,667 3,002,275 3,002,275 4,342,275 44.6%
° Total General Fund $51,487,699 $54,053,971 $53,431,800 $56,936,455 6 6% 57,181,843 245,387 9,245,322 9,490,709
• Parks & Recreation 4,046,898 4,132,425 4,128,949 4,412,448 6.9% 4,357,215 (55,233) 678,057 622,824
X Street & Traffic Operations 5,237,585 5,490,823 5,335,438 4,786,409 (10 3 %) 4,596,360 (190,049) 1,159,849 969,800
Q; Total General Government Funds $60,772,182 $63,677,219 $62,896,187 $66,135,312 5.1% 66,135,418 105 11,083,228 11,083,333
v)
N
1
M 2012 2013 2013 2014 2014 2014 2014 2014 2014
4-' Actual Amended Year -End Preliminary vs 2013 Projected Use of Fund Beginning Est. Ending
Q. Expenditures Budget Estimate Budget Estimate Revenue Balance Fund Balance Fund Balance
v ' Other Operating /Enterprise
•
H Economic Development $256,503 $277,332 $277,332 $456,622 64 6% $258,000 ($198,622) $227,304 $28,682
Community Development 2,258,745 2,564,724 2,415,534 1,766,938 (26.9 %) 1,764,163 (2,775) 225,833 223,058
co
co
Community Relations 480,705 922,855 918,800 601,850 (34 5 %) 551,600 (50,250) 535,672 485,422
p Cemetery 264,453 267,327 267,287 278,900 4.3% 264,950 (13,950) 39,882 25,932
b a Emergency Services 1,175,527 1,189,923 1,189,923 1,339,282 12 6% 1,337,026 (2,256) 134,085 131,829
Public Safety Communications 3,230,863 3,520,154 3,441,871 3,218,239 (6.5 %) 3,019,937 (198,302) 317,729 119,427
co Police Grants 1,086,380 708,078 835,439 469,024 (43 9 %) 484,000 14,976 428,879 443,855
P Downtown Improvement District 154,116 287,522 287,522 244,358 (15.0 %) 235,170 (9,188) 31,304 22,116
Trolley (Yakima Interurban Lines) 1,217 77,246 24,568 57,809 135.3% 54,926 (2,883) 8,036 5,153
p Front St Business Impr Area 1,533 5,000 5,000 9,000 80 0% 3,335 (5,665) 6,785 1,120
o Tourist Promotion 1,426,855 1,460,299 1,460,299 1,483,667 1.6% 1,548,250 64,583 434,559 499,142
Capitol Theatre 346,200 348,300 344,730 342,020 (0.8 %) 297,250 (44,770) 58,180 13,410
PFD Revenue - Convention Center 717,685 684,000 684,000 645,000 (5.7 %) 755,750 110,750 245,335 356,085
Tourist Promotion Area 632,725 667,000 667,000 687,000 3 0% 687,000 - 78,685 78,685
PFD Revenue - Capitol Theatre 516,985 517,000 517,000 531,000 2.7% 575,500 44,500 96,837 141,337
Recovery Program Grants 37,348 - - - n/a - - - -
Airport Operating Fund - 1,081,788 997,451 1,037,370 4 0% 993,625 (43,745) 87,502 43,757
Storm Water Operating 1,939,945 2,087,622 2,080,778 2,325,519 11.8% 2,165,000 (160,519) 1,449,369 1,288,850
Transit 7,900,929 8,042,762 7,995,954 8,240,033 3 1% 7,660,917 (579,116) 1,467,772 888,656
Refuse 5,435,765 5,654,199 5,652,596 5,670,633 0.3% 5,586,000 (84,633) 360,765 276,132
Sewer Operating 19,278,273 19,525,178 19,422,519 20,213,432 4 1% 19,958,357 (255,075) 1,906,382 1,651,307
Water Operating 8,204,797 8,546,883 8,273,043 9,022,649 9.1% 7,997,500 (1,025,149) 2,406,577 1,381,428
Irrigation Operating 1,386,481 1,509,163 1,509,073 2,063,884 36 8% 1,766,100 (297,784) 919,142 621,358
Equipment Rental 5,864,466 5,978,336 5,975,598 5,671,800 (5 1 %) 5,319,711 (352,089) 4,095,311 3,743,222
Environmental Fund 146,154 192,950 192,950 192,950 0.0% 150,000 (42,950) 395,848 352,898
Public Works Administration 1,117,602 1,202,645 1,197,546 1,168,866 (2 4 %) 1,115,438 (53,428) 424,110 370,682
Total Other Operating /Enterprise $63,862,252 $67,318,286 $66,633,813 $67,737,845 1.7% $64,549,505 ($3,188,340) $16,381,883 $13,193,543
2012 2013 2013 2014 2014 2014 2014 2014 2014
Actual Amended Year -End Preliminary vs 2013 Projected Use of Fund Beginning Est. Ending
Expenditures Budget Estimate Budget Estimate Revenue Balance Fund Balance Fund Balance
Capital Improvement
Arterial Street $2,368,655 $8,935,977 $6,865,515 $5,106,566 (25 6 %) $3,823,975 ($1,282,591) $1,748,436 $465,845
C.B.D. Capital Improvement 72,210 229,500 229,500 91,000 (60.3 %) 22,400 (68,600) 156,385 87,785
Capitol Theatre Construction 3,201 - - 140,000 n/a 71,927 (68,073) 72,546 4,473
Yakima Rev Development Area 1,299,536 2,509,240 1,913,005 2,473,235 29.3% 2,850,000 376,765 208,278 585,043
Parks & Recreation Capital 819,062 100,000 100,000 100,000 0 0% - (100,000) 139,540 39,540
Fire Capital 271,094 1,246,896 1,246,459 296,459 (76.2 %) 134,500 (161,959) 534,108 372,149
Law & Justice Capital 953,846 5,289,102 5,289,047 750,636 (85 8 %) 382,886 (367,750) 527,162 159,412
Public Works Trust Construction 631,315 958,782 958,782 732,773 (23 6 %) 676,306 (56,467) 403,137 346,670
REET 2 Capital Construction 506,822 506,822 506,822 772,787 52.5% 592,000 (180,787) 513,132 332,345
Street Capital Fund - - - 16,500,000 n/a 16,500,000 - - -
Airport Capital - 1,897,707 1,897,707 11,162,885 488.2% 10,666,597 (496,288) 531,920 35,632
Stormwater Capital 378,233 503,424 229,550 790,000 244 2% 444,000 (346,000) 1,166,613 820,613
Transit Capital Reserve 294,088 545,500 67,630 1,749,000 2486.1% 1,268,507 (480,493) 2,257,292 1,776,799
Convention Center Capital Impr 211,826 295,000 225,000 360,000 60 0% 260,500 (99,500) 583,267 483,767
Cum. Reserve for Capital Impr 2,197,797 12,537,058 9,621,094 4,948,000 (48.6 %) 4,004,489 (943,511) 1,996,764 1,053,253
Wastewater Facilities Capital Rsv 14,280 50,000 50,000 400,000 700.0% 505,500 105,500 976,035 1,081,535
Sewer Construction 1,506,642 6,365,000 4,190,000 4,200,000 0 2% 1,500,000 (2,700,000) 4,677,701 1,977,701
Domestic Water Improvement 426,833 7,150,896 6,995,000 4,320,000 (38.2 %) 2,264,800 (2,055,200) 3,615,836 1,560,636
H Wastewater Facilities 6,573,146 14,040,000 10,980,630 8,375,000 (23 7 %) 8,496,400 121,400 1,703,507 1,824,907
co Irrigation System Improvement 1,757,032 1,073,252 845,123 1,621,504 91.9% 1,741,060 119,556 454,784 574,340
co
, Total Capital Improvement $20,285,618 $64,234,156 $52,210,864 $64,889,845 24 3% $56,205,847 ($8,683,998) $22,266,443 $13,582,445
co
ba Contingency /Operating Reserves
FRS /Capitol Theatre Reserve $71,927 $71,927 $71,927 $71,927 0 0% $500 ($71,427) $180,495 $109,068
;° Risk Management 2,973,111 3,846,337 3,723,925 3,299,649 (11.4 %) 3,360,000 60,351 944,666 1,005,017
P Total Contingency /Operating Rsys $3,045,038 $3,918,264 $3,795,852 $3,371,576 (11 2 %) $3,360,500 ($11,076) $1,125,161 $1,114,085
vi
0
•
K
yr
W
M 2012 2013 2013 2014 2014 2014 2014 2014 2014
4-' Actual Amended Year -End Preliminary vs 2013 Projected Use of Fund Beginning Est. Ending
Q. Expenditures Budget Estimate Budget Estimate Revenue Balance Fund Balance Fund Balance
v ' Employee Benefit Reserves
•
H Unemployment Compensation $150,116 $293,796 $158,789 $286,582 80.5% $177,000 ($109,582) $377,159 $267,577
Employees Health Benefit 10,882,062 11,628,854 9,416,162 9,867,703 4 8% 9,158,200 (709,503) 3,779,413 3,069,910
co
co
Workers' Compensation 993,530 1,244,636 1,167,825 1,258,630 7.8% 1,033,000 (225,630) 1,028,264 802,634
p Wellness /EAP Fund 56,208 120,200 120,200 171,600 42.8% 175,000 3,400 181,238 184,638
b a Firemen's Relief & Pension 1,292,617 1,347,493 1,234,967 1,259,308 2 0% 1,259,338 30 922,511 922,541
Total Employee Benefit Reserves $13,374,533 $14,634,979 $12,097,943 $12,843,823 6.2% $11,802,538 ($1,041,285) $6,288,585 $5,247,300
co
P Trust and Agency Funds
Cemetery Trust $20,000 $5,500 $12,000 $12,000 0 0% $14,500 $2,500 $616,224 $618,724
p YakCorps Agency Fund 187,672 511,700 511,700 610,671 19.3% 610,671 - 392,200 392,200
o Total Trust and Agency Funds $207,672 $517,200 $523,700 $622,671 18 9% $625,171 $2,500 $1,008,424 $1,010,924
Debt Service
L.I.D. Guaranty $20,000 - - - n/a $50 $50 $60,214 $60,264
PFD Debt Service 1,018,253 1,017,000 1,017,000 1,015,650 (0 1 %) 1,016,422 772 159,626 160,398
General Obligation Bonds 2,217,082 2,529,384 2,418,000 3,708,199 53.4% 3,522,969 (185,230) 264,284 79,054
LID Debt Service 211,908 285,000 255,000 245,000 (3 9 %) 270,000 25,000 69,154 94,154
Water - Irrigation /Sewer Bonds 3,480,991 2,127,561 2,127,561 2,144,786 0 8% 2,146,286 1,500 1,758,712 1,760,212
Total Debt Service $6,948,234 $5,958,945 $5,817,561 $7,113,635 22.3% $6,955,727 ($157,908) $2,311,990 $2,154,082
Total City Budget $168,495,529 $220,259,049 $203,975,920 $222,714,707 9 2% $209,634,706 ($13,080,002) $60,465,714 $47,385,712
WHAT YOU PAY AND WHAT YOU GET
This section is presented to assist the reader in understanding the taxes they pay, what
governmental entity receives those tax revenues and how the City spends their allocated portion.
Enclosed, you'll find charts and graphs which identify how much of the taxpayers' dollar comes to
the City and what percentage of the City's total revenues each type of tax /charge represents. Also
included is (a) an outline of the City taxes and utility charges collected from a typical Yakima
household; (b) a depiction of how those revenues are then distributed between the various City
services /functions and (c) the amount a typical four person household pays for these services.
MAJOR TAXES PAID
Sales and Use Tax
There is an 8.2% sales tax charged on the sale of goods within the City. The vast majority of this
revenue is allocated to the State, not the City. The State receives 6.50% while the City receives .85% for
the general fund and an additional .30% that is restricted for transit services. .15% goes directly to the
County, and .40% represents countywide taxes for Criminal Justice that is allocated between Cities and
the County. (Refer to the following chart for a complete detailed listing of how this revenue is allocated.)
Following is an example of how the sales taxes paid by the consumer are allocated between the City
and the State. Based on the assumption that a family with a taxable income of $40,000 will spend
$10,000 on items on which sales tax will be applied, they will pay approximately $820 in sales taxes
annually. Of this amount, 14.0% or approximately $115 goes to the City ($85 or .85% for general
fund and $30 or 0.3% for transit services).
The following chart depicts how much of each dollar of sales tax revenue is allocated to the State,
the City and the County.
ALLOCATION OF SALES TAX COLLECTION
State of Washington Yakima Transit
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What You Pay and What You Get • Exhibits — 5
SALES TAX RATES WITHIN YAKIMA CITY LIMITS
(In descending order by total allocation)
Percent Example
Rate of Total $100 Sale
State of Washington 6.50% 79.27% $6.50
City of Yakima (General Fund) (1) 0.85% 10.37% $0.85
Yakima Transit 0.30% 3.66% $0.30
Yakima County (Current Expense Fund) (1) 0.15% 1.83% $0.15
Yakima County Criminal Justice (2) 0.40% 4.88% $0.40
Total Sales Tax Rate in City Limits 8.20% 100.00% $8.20
(1) The City charges 1 %, however, the county receives 15% of the cities' sales tax collections
(2) This tax is allocated among the cities and the county to support Criminal Justice uses
Property Taxes
The total property taxes paid by property owners within the City of Yakima include taxes levied by
several governmental entities: the State, School Districts, special county -wide voted levies and the
City's general and special voter approved levies. The percentage of the total property taxes levied
by, and allocated to, each individual governmental entity will change slightly from year to year.
The City's portion is generally under 30% of the total amount collected. (Refer to the graph and
chart below for how the 2013 property taxes were allocated between these governmental entities.)
2013 PROPERTY TAX DISTRIBUTION
Yakima School District State of Washington Schools Library
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City of Yakima Property Tax - In 2013, a typical City resident pays approximately $12.92 per
thousand of assessed value on property taxes. Only $3.12, or about 24.5 %, goes to the City, with the
balance divided between the County, schools, and other special districts.
Description Of How Property Taxes Are Levied - The following explanation is included to help
the reader understand how property taxes are assessed to the individual property owners. To aid
in this explanation, three commonly used terms must be understood. They are Property Tax Levy,
Property Tax Rate and Assessed Value.
6 - Exhibits • What You Pay and What You Get
■ Property Tax Levy — is the total amount of money that is authorized to be collected.
■ Property Tax Rate — is the property tax amount that will be applied to every $1,000 of
assessed value; the rate is determined by simply dividing the levy amount by the total
assessed value amount and dividing that number by 1,000.
■ Assessed Value — is the total value, as determined by the County Assessor's Office, of all
property within the City.
All taxing jurisdictions annually set the levy (i.e. amount of tax) in accordance with the limitations
set by state law. The County Assessor then takes the levied amount and divides it by total assessed
value to arrive at the rate /$1,000.
In other words, an increase in assessed value does not affect the total amount levied or collected by
the governmental entity. Nor does it automatically affect the amount the property owner must pay.
The dollar amount of the levy is restricted by law — the assessed value is simply the means to allocate
the total dollars among the property owners. A change in one property owner's assessed value will
affect his/her property tax bill only if the change is significant enough to change that property
owner's percentage of the total assessed value of all property within the taxing districts. (Example: if
the amount of property tax levied does not change from one year to the next, and every property
owner's assessed value goes up 3 %, there will be no change in the property tax owed by any of the
property owners. This is due to the fact that everyone's assessed value increase by the same amount;
therefore, every property owner's percentage of the total tax levy remained the same.)
PROPERTY TAX CODE AREA #333 (YAKIMA SCHOOLS) — CONSOLIDATED LEVY AND RATES
2011 ASSESSED VALUATION — 2012 TAX YEAR
Amount Percent
2012 2013 of
Property Tax Levy Rate Levy Levy
City Levy
General Fund $1.8946 $10,410,000
Parks & Recreation 0.3298 1,812,000
Street & Traffic Operations 0.6681 3,671,000
Firemen's Relief & Pension 0.2169 1,192,000
Total Operating Levy 3.1094 17,085,000 24.1%
Total Bond Levy 0.0541 107,230 0.4 %,
Total City Levy $3.1635 $17,192,230 24.5%
Other Levies
Yakima School District #7
Operation & Maintenance 3.0385 16,457,971 36.4 %,
Bond Redemption 1.6610 8,996,772
State Schools 2.5116 13,799,979 19.4 %,
Library 0.4763 2,617,029 3.7 %,
Yakima County 1.7493 9,611,524 14.2%
Yakima County Flood Control 0.0903 496,153
Juvenile Justice Bond 0.0001 542
EMS Levy 0.2258 1,240,657 1.7 %,
Total Other Levies 9.7529 53,220,627 75.5 %,
Total Levy Code #333 $12.9164 $70,412,857 100.0 %,
What You Pay and What You Get • Exhibits — 7
City Taxes and Utility Charges
The taxes and utility charges shown in the following charts are only those directly levied by the
City. In the cases of sales and property taxes, the 2 major taxes paid directly by Washington
residents, only a small portion of the total tax belongs to the City.
To illustrate what a typical household might pay, the following assumptions were made. Property tax
based on $120,000 home; Sales tax based on $42,000 annual income and $10,500 taxable purchases;
Utilities based on 96 gallon can for Refuse, 1,300 cubic foot monthly consumption for Water/Wastewater;
Irrigation for 7,000 square foot lot; Stormwater based on impervious surface; Gas /electricity $3,000,
telephone $1,200, cable television $1,200. Based on these assumptions, a typical household in Yakima
paid approximately $218 a month, or $2,617 a year, as depicted in the following charts.
ANNUAL TAXES AND UTILITY CHARGES LEVIED
BY THE CITY OF YAKIMA ON THE TYPICAL HOUSEHOLD FOR 2012
Rate Cost Per
Revenue Per 1,000 Household
Property Taxes - General $3 0516/1,000 $371
Special Levy Property Taxes $0.0541/1,000 6
Sales Tax - General 121
Transit Sales Tax 32
Tax on City -owned Utilities - General 238
Tax on Private Utilities - General 324
Utility Charges (Water/Wastewater/Refuse) - Exc Utility Tax 1,236
Stormwater 43
Irrigation Assessment 246
$2,617
CITY TAXES AND UTILITY CHARGES
COST TO TYPICAL HOUSEHOLD — $2,617 ANNUALLY
Irngathon
$246 Refuse
$189
Water
$330 General
Government
$133
Street
„.....4 $58 Storm Water
Park $43
$.
apital Project
Funds $52
Other Translt avlslon
$114 $32
Other Special
Revenue Funds
$25
Debt Service F ds .
$8
Special Levy Debt
Wastewater Public Safety $6
$717 $722
8 — Exhibits • What You Pay and What You Get
GENERAL GOVERNMENT REVENUE
The total 2014 proposed General Government Revenue Budget is approximately $66.1 million.
The following chart breaks this dollar amount down by the source of the revenue. You'll note that
three revenue sources - sales tax, property tax and franchise and utility taxes - generate 74.1% of
the total general fund revenues.
GENERAL GOVERNMENT REVENUE
(BASED ON 2013 BUDGET OF $66.1 MILLION)
23.2( 5.5( 4.3¢
26.9¢ Franchise & Inter government & Other
Sales Tax Utility Tax State Shared Revenue Revenue
($17,790,000) ($15,332,500) ($3,604,600) ($2,875,500)
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Property Tax Licenses, Permits Fines &
($15,899,000) & Charges Other Taxes
for Services ($3,106,751)
($7,527,067)
Note: The term "General Government" refers to basic tax supported functions. The major functions
included in this category are: Police, Fire, Streets and Traffic Operations, Parks and Recreation and
Municipal Court services. These functions use about 70.7% of General Government revenues. Other
administrative services include Information Systems (i.e. computer support), Legal, Finance, Purchasing
and Human Resources - services necessary for any organization to function.
GENERAL GOVERNMENT EXPENDITURES
The following chart depicts the breakdown of the proposed 2014 general government expenditure
budget. This breakdown identifies that the City spends over $45.9 million (or 68.1 %) of its available
resources on providing public safety services (Police & Courts, Fire & Code Enforcement).
Additionally, the City allocates over 7.0% of its resources to maintaining and operating the Streets
and Traffic Systems and another 6.5% to provide Parks and Recreation programs and services.
Providing the existing services in these four basic categories takes 81.5% of all the City's available
general government resources.
What You Pay and What You Get • Exhibits — 9
Providing the services in these four critical areas is labor intensive; approximately 70.2% of these
costs are personnel related. Therefore, any significant budget reductions in these areas will require
a reduction in personnel and the related services these individuals perform. Conversely, any
significant reductions in the overall general government budget that do not include these four
largest areas of the budget will severely limit the services the remaining departments will be able to
provide (i.e.: Financial (including Information Technology), Legal, Community Planning and
Project Engineering and Administration).
Breaking down the City's general government budget by these major service areas and identifying
the percentage of each available dollar that the City allocates to each of these areas provides the
reader with a visual picture of where the focus and priorities of the City have been placed.
Additionally, this chart will assist the reader in understanding the difficult challenges facing the
City should it become necessary to implement a significant reduction in the City's proposed budget
without affecting the public safety budget and services.
GENERAL GOVERNMENT EXPENDITURES
(BUDGET OF $66.6 MILLION — INCLUDES FIRE PENSION OF $1.3 MILLION)
45.8( 7.0¢ 6.5¢ 2.3¢
Police & Streets & Parks & Community Planning
Courts Traffic Recreation Project Engineering
$30,501,404 $4,664,411 $4,299,982 $1,558,355
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Fire / Code Financial & Governance/
Enforcement Legal Services Administration
$14,839,192 $3,888,413 $6,868,498
Allocation of Expenditures
Following is a detailed analysis of the City of Yakima's local tax structure. This analysis shows the
various sources of City revenue and identifies what type of services these revenues will fund in
2014. Additionally, this analysis reflects the cost of each of these services to a typical household.
The non -tax funding sources identified include all sources except directly levied taxes (shown in
the adjacent column) which are property, sales and utility taxes. The non -local tax amounts are
made up of direct charges for services, state shared revenues, grants, interfund charges, beginning
balances, and other miscellaneous sources.
10 - Exhibits • What You Pay and What You Get
Municipal public safety services consume the greatest share of local taxes, $722 per household per
year, or 68.5% of the total general taxes paid. Other General Government services cost $133 per
household annually, or 12.6 %. Streets and Parks together cost $115 per household annually, or
10.8% of general taxes paid.
The Refuse, Water and Wastewater utilities combine to cost approximately $1,236 annually per
household. (Many of the costs included in the budgets of the utilities fund State and Federal
mandates that local citizens must pay.)
ALLOCATION OF TAXES AND UTILITY CHARGES
(BASED ON 2013 PROPOSED BUDGET - BUDGET NUMBERS IN THOUSANDS)
2014
2014 Non -Tax Allocation Household Permanent
Proposed Funding Local of Taxes Typical Budgeted
Tax Supported Functions Budget Sources Taxes Collected Cost Positions
Local Direct General Purpose Tax Supported Functions
Public Safety (Police Fire & Pensions) $45,520 $7,065 $38,455 68.5 %, $722 332.1
General Government 17,714 10,637 7,077 12.6 %, 133 134.4
Streets Department 4,786 1,714 3,072 5.5 %, 58 32.0
Parks Department 4,412 1,403 3,009 5.4 %, 56 21.3
Other Special Revenue Funds 3,715 2,395 1,320 2.4% 25 15.0
Debt Service Funds 2,807 2,379 428 0.8 %, 8 0.0
Capital Project Funds 14,484 11,733 2,751 4.9 %, 52 0.0
Local Direct Special Purpose Tax Supported Functions
Special Levy Debt 540 433 107 - 6 0.0
Transit Division 9,989 5,089 4,900 - 32 54.0
Non -Local Tax Supported Functions
Street Construction 6,729 6,729 - - - 0.0
Refuse- 18,767 Residential accounts 5,671 5,671 - - 189 20.5
Wastewater- 22,591 Residential accounts 34,771 34,771 - - 717 61.5
Water - 17,349 Residential accounts 13,583 13,583 - - 330 35.0
Equipment Rental 5,672 5,672 - - - 12.0
Public Works Administration 1,169 1,169 - - - 9.0
Self- insurance Reserve 5,038 5,038 - - - 0.0
Employee Benefit Reserve 10,039 10,039 - - - 0.0
Irrigation- 10,541 Residential accounts 4,008 4,008 - - 246 7.0
PBIA 253 253 - - - 0.0
Storm Water 3,116 3,116 - - 43 7.7
Airport 12,200 12,200 - - - 7.0
Totals $206,216 $145,097 $61,119 100.0 %, $2,617 748.4
Based on 2014 cost for a typical four person household. Property tax based on $120,000 home; sales tax based on $42,000
annual income and $10,500 taxable purchases; utilities based on 96 gallon can for refuse, 1,300 cubic foot monthly
consumption for water /wastewater; irrigation for 7,000 square foot lot; gas / electricity $3,000, telephone $1,200, and cable
TV $1,200
What You Pay and What You Get • Exhibits -11
TAX BURDEN - FEDERAL VS. LOCAL
The Tax Foundation of Washington D.C. publishes a Special Report each April, called "America
Celebrates Tax Freedom Day ". This is when Americans will have earned enough money to pay off
their total tax bill for the year. Taxes at all levels of government are included, whether levied by the
federal government or state and local governments. Tax Freedom Day in 2013 fell on April 18th,
five days later than it did in 2012, due mainly to the fiscal cliff deal that raised federal taxes on
individual income and payroll. On average in 2013, Americans will work 69 days to afford their
federal taxes and 38 more days to afford state and local taxes.
As the economic recovery continues, the growth in individual incomes and corporate profits will
increase tax revenues and push Tax Freedom Day ever later in the year. The total tax burden borne
by residents of different states varies considerably, not only due to differing state tax policies, but
also because of the progressivity of the federal tax system. This means higher - income states
celebrate Tax Freedom Day later than lower - income states.
The report indicates that Washington State was ranked 9th highest in the nation for overall per
capita taxes paid in 2012. This demonstrates that Puget Sound, with a higher cost of living and
commensurately higher salaries, generated high federal income tax payments. (Some of the
wealthiest people in the world live in Washington State.) However, estimated at 9.3% of income,
Washington's state and local tax burden percentage ranks 29th highest nationally, below the
national average of 9.8 %. It also demonstrates how small the state and local tax burden is in
comparison to the total taxes paid - at roughly one third of the total tax burden (currently at 29.2 %).
For the most part, local taxes cost the least and provide citizens with the services they need and
care about the most - they have the most direct bearing on their quality of life. This is also the
level where citizens are most empowered to affect government policy and monitor accountability.
There are per capita comparisons presented in the Budget, which contrasts the City of Yakima with
other similar cities in Washington State. Yakima is consistently below the average in per capita
taxes.
12 - Exhibits • What You Pay and What You Get
EXHIBIT III — SUPPLEMENTAL INFORMATION
TABLE OF CONTENTS
CRIMINAL JUSTICE
Criminal Justice Costs
General Government Budgets
Criminal Justice Sales Tax
SALARY AND BENEFIT COSTS
Costs to Total Budget
Operating Funds
RESOURCE AND EXPENDITURE BREAKDOWN
Graphic Portrayal
Total Resources — by Category
Total Resources — by Category and Source
Total Expenditures
Supplemental Information • Exhibits —13
CRIMINAL JUSTICE
This analysis compares Criminal Justice expenditures to other General Government costs. Criminal
Justice costs include: Police Department (including jail costs); Police Pension; Court and Probation
costs; Prosecution and Indigent Defense (included in the Legal Department budget) and forty
percent of Information Systems budget (the amount dedicated to Law and Justice support). This
category also includes one -half of the transfer from the General Fund to the Public Safety
Communications Fund for Dispatch and the transfer from the General Fund to Debt Service funds
to repay debt borrowed for Criminal Justice purposes. This graph reflects the City's efforts to meet
Council's Strategic Priorities. Public safety has been a high priority focus of City Council for the
last two decades.
GENERAL GOVERNMENT BUDGETS (1)
LAST TEN YEARS
2005 2006 2007 2008
Amended Amended Amended Amended
Budget Budget Budget Budget
General Fund
Criminal Justice $20,794,116 $22,857,422 $25,014,331 $26,935,856
Other 17,862,426 19,557,208 18,856,452 19,782,839
Parks & Recreation 3,905,396 4,074,592 4,199,143 4,420,906
Street /Traffic 5,273,574 5,522,653 5,907,882 6,213,833
Total $47,835,512 $52,011,875 $53,977,807 $57,353,434
June June June June
2004 2005 2006 2007
Consumer Price Index 190.4 194.8 203.8 210.6
(1) Excludes double budgeted transfers between general government funds
14 — Exhibits • Supplemental Information
COSTS VS. OTHER GENERAL GOVERNMENT FUNCTIONS
Street /Traffic
Parks & $4,786,409
Recreation 7.7%
$4,412,448
7.1%
Criminal Justice
$31,931,151
51.3%
Other
$21,158,029
34.0%
2009 2010 2011 2012 2013 2014 2014
Amended Amended Amended Amended Amended Preliminary VS 10 Year
Budget Budget Budget Budget Budget Budget 2013 Increase
$28,471,541 $27,554,732 $28,192,940 $29,522,541 $31,849,983 $31,931,151 0.3% 59.2%
20,240,301 19,912,799 19,279,670 19,343,517 19,727,486 21,158,029 7.4% 21.1%
4,249,796 4,133,782 4,042,938 4,048,697 4,132,425 4,412,448 6.9% 15.1%
5,686,692 5,308,117 5,218,691 5,199,157 5,490,823 4,786,409 (13.5 %) (2.0 %)
$58,648,330 $56,909,430 $56,734,239 $58,113,912 $61,200,717 $62,288,038 1.9% 34.7%
June June June June June June 10 Year
2008 2009 2010 2011 2011 2012 Increase
223.6 219.9 221.7 227.5 236.2 239.0 25.5%
Supplemental Information • Exhibits —15
CRIMINAL JUSTICE SALES TAX - .3% EXPENDITURES AND REVENUES
2013 2014
2010 2011 2012 Year -End Proposed
Actual Actual Actual Estimate Budget
General Fund
Police Department
Salaries & Benefits (includes overtime) $659,059 $671,542 $704,378 $702,241 $715,539
Miscellaneous (uniform /fuel /travel) 31,592 14,639 13,345 50,000 50,000
Liability Insurance 7,322 7,542 8,296 8,877 9,498
Professional Services/R&M Contractors 0 0 75 0 5,000
Yakima County Jail Cost 436,612 350,000 479,692 380,000 422,000
Total Police Department 1,134,585 1,043,723 1,205,786 1,141,118 1,202,037
The .3% Criminal Justice funds support six full time Patrol Officers including, all wages, overtime, uniforms, supplies,
insurance and training expenses. Additionally, these funds are used for repairs, maintenance, communications and
fuel used for additional patrols. A portion of the increased Jail costs are also paid out of this fund.
Municipal Court
Salaries & Benefits (includes overtime) 165,745 145,841 142,074 165,776 208,857
Professional Services 33,633 30,722 38,922 45,000 45,000
Miscellaneous (office supplies /travel /dues) 5,513 0 1,259 5,000 5,000
Total Municipal Court 204,891 176,563 182,255 215,776 258,857
The Criminal Justice funds support two Municipal Court Clerk positions and a half -time Court Commissioner
including all wages, overtime, supplies and training. Additionally, this fund supports building security, interpreter
services and witness and juror fees associated with processing the court's case load.
Legal Dept
Salaries & Benefits (includes overtime) 153,382 154,948 166,771 186,877 182,465
Professional Services 4,576 0 70 3,000 5,000
Miscellaneous (office supplies /travel /dues) 2,296 3,086 1,878 3,350 8,750
Total Legal Department 160,254 158,034 168,720 193,227 196,215
The .3% Criminal Justice Sales Tax is being used to supplement criminal justice functions throughout Yakima County.
This money fully funds one Legal Assistant II position, one Assistant City Attorney II position including mandatory
continuing legal education expenses and dues and subscriptions for required Associations.
Information Systems
Salaries & Benefits (includes overtime) 28,061 22,191 29,016 16,619 16,734
Miscellaneous 22,411 100 0 57 57
Professional Services/R & M Contractors 0 39,692 91,256 94,600 119,400
Total Information System 50,472 61,983 120,272 111,276 136,191
The portion of the .3% Criminal Justice Sales Tax allocated to Information Systems is used to enhance the effectiveness
of the law enforcement and other Criminal Justice personnel through the expanded use of technology. Currently, the
emphasis is on mobile technology for the patrol officers. A portion of these funds are budgeted for temporary salaries
used to support the mobile computing and technology infrastructure that has been expanded and enhanced through
Criminal Justice Tax over the last several years. YAKCORPS member fees have been added to this budget in 2012.
16 - Exhibits • Supplemental Information
2013 2014
2010 2011 2012 Year -End Proposed
Actual Actual Actual Estimate Budget
Animal Control /Codes
Salaries & Benefits (includes overtime) $67,264 $66,212 $68,644 $72,321 $70,190
Misc (uniforms /supplies /fuel /cell phone) 1,446 6,841 8,892 10,000 10,467
Total Animal Control /Codes 68,710 73,053 77,536 82,321 80,657
The .3% Criminal Justice Funds support one full -time Animal Control Officer including all wages, overtime, supplies
and communication necessary for this position.
Human Resources
Professional Services (employee recruitment) 6,000 3,250 3,250 6,500 6,500
The .3% Criminal Justice funds are used to provide for contract services, testing and other necessary recruitment costs
for positions funded by the criminal justice sales tax.
General Fund Total Expenditures $1,624,912 $1,516,606 $1,757,819 $1,750,218 $1,880,457
Other Funds
Public Safety Communication
Salaries & Benefits (includes overtime) $142,863 $159,287 $139,930 $177,408 $174,364
Small Tools & Equipment 0 0
Total Public Safety Communication 142,863 159,287 139,930 177,408 174,364
Criminal Justice funds allocated to this department are used for additional positions necessary to accommodate the
increased workload generated by law enforcement activities. These funds provide for two full -time Dispatcher and
temporary support for Police.
Law & Justice
Small Tools & Equipment 15,268 2,867
Op er at ing Equipment 5,365 1,618 44,179 96,500 26,000
Total Law & Justice 20,633 4,485 44,179 96,500 26,000
The .3% Criminal Justice funds support Capital expenses related to the new positions, technology and services created
with this tax.
Total Expenditures $1,788,408 $1,680,378 $1,941,927 $2,024,126 $2,080,821
Revenue $1,789,171 $1,831,296 $1,935,069 $2,021,000 $2,081,000
Revenue over (Under) Expenditures $763 $150,918 ($6,858) ($3,126) $179
Cumulative Balance $470,147 $621,065 $614,207 $611,080 $611,259
Supplemental Information • Exhibits -17
SALARY AND BENEFIT COSTS
COSTS TO TOTAL BUDGET
The following chart represents the relationship of the City's salary and benefit costs to total budget
for General Government and other funds of the City. The City's General Fund ranks in the top
three with salary and benefit costs, representing 68.9% of total fund expenditures. However,
employee compensation and benefit costs for an individual department within the General Fund as
a percentage of its total costs range from 26.6% to 94.6 %. In several departments (including Police,
Legal and Information Systems) if contracted services were excluded, the percentage of salary and
compensation costs as a percentage of the division total costs would be considerably higher than
what is depicted on the following chart.
Parks, Streets and other operations for the most part are more capital intensive, and the ratio of
salary and benefits to total costs are representative of that type of operation.
Section I includes an analysis based on information gathered by the State Auditor's Office. The
chart in this section identifies the per capita salary costs for Yakima and 11 other comparable cities,
and indicates that:
The City of Yakima spends, on the average, $44 less per capita on salaries than other
comparable cities, even though we are a full service city providing Refuse, Irrigation and
Transit while most other cities do not directly provide these functions.
Yakima employs fewer people per capita than other cities.
To minimize the number of regular employees and to maintain service levels during periods of
peak workload demands, the City uses contract and temporary labor when feasible.
18 — Exhibits • Supplemental Information
OPERATING FUNDS
SALARIES & BENEFITS AS A PERCENTAGE OF TOTAL DEPARTMENT/FUND BUDGET
2014
2014 Salaries & Labor
General Government Budget Benefits Percentage
Police $26,057,587 $19,359,662 74.3%
Fire 10,167,258 8,507,692 83.7%
Information Systems 2,912,612 2,081,732 71.5%
Financial Services 1,488,836 1,307,658 87.8%
Utility Services 1,316,181 972,629 73.9%
Municipal Court 1,344,118 1,105,517 82.2%
Code Administration 1,537,371 1,166,631 75.9%
Legal 1,314,323 1,172,379 89.2%
Engineering 1,109,632 1,031,475 93 0%
Environmental Planning 458,481 413,673 90.2%
City Manager 372,684 333,484 89.5%
Purchasing 549,369 519,616 94.6%
Human Resources 513,151 366,898 71.5%
Records 563,922 310,384 55 0%
Economic Development 486,733 254,733 52.3%
City Hall Maintenance 407,885 146,786 36 0%
Gang Free Initiative 333,105 88,618 26.6%
City Council 282,076 102,800 36 4%
Other General Fund Expenditures 5,721,131 0 0 0%
Total General Fund $56,936,455 $39,242,367 68.9%
Parks & Recreation 4,412,448 2,162,443 49 0%
Street & Traffic Operations 4,786,409 2,349,744 49 1%
Total General Government $66,135,312 $43,754,554 66.2%
Economic Development 456,622 172,887 37.9%
Community Development 1,766,938 514,014 29 1%
Community Relations 601,850 412,904 68.6%
Cemetery 278,900 167,535 60 1%
Emergency Services 1,339,282 973,934 72.7%
Public Safety Communications 3,218,239 2,526,670 78.5%
Police Grants 469,024 232,593 49.6%
Airport 1,037,370 578,096 55.7%
Stormw ater 2,325,519 732,615 31.5%
Transit 8,240,033 3,826,041 46 4%
Refuse 5,670,633 1,389,749 24.5%
Wastewater Operating 20,213,432 5,143,215 254%
Water Operating 9,022,649 2,440,269 27 0%
Irrigation Operating 2,063,884 650,058 31.5%
Unemployment Comp Reserve 286,582 24,911 8.7%
Employment Health Benefit Reserve 9,867,703 109,614 1 1%
Workers Compensation Reserve 1,258,630 93,386 7 4%
Risk Management Reserve 3,299,649 635,067 19.2%
Equipment Rental 5,671,800 884,866 15.6%
Public Works Administration 1,168,866 581,026 49.7%
Other Funds (Capital/Debt Sery etc) 78,321,790 0 0 0%
Total City -wide Budget $222,714,707 $65,844,004 29.6%
Supplemental Information • Exhibits -19
RESOURCE AND EXPENDITURE BREAKDOWN
GRAPHIC PORTRAYAL OF CITY RESOURCE CONSUMPTION
The purpose of this section is to graphically present total City resources by category, and distribute
them by function and type of expenditure for the 2014 budget year. This "flow of resources"
concept is designed to give the taxpayer a basic understanding of how tax dollars and other
revenues are spent in the City. Interfund transactions have been eliminated (i.e., those items that
flow out of one fund and into another; these are referred to as double budgeted items) in order to
portray only external revenue sources available to the City.
The broad revenue categories are based upon the State of Washington's mandated accounting
structure. A definition of the terms is included below:
Borrowings - Proceeds from long -term debt issued by the City. In 2014 this includes primarily a
revenue bond for Councilmanic general Obligation bonds for street improvements and Public
Works Trust State Revolving Fund loans for utility capital needs.
Capital Reserves - Accumulated fund balances set aside for specific capital projects.
Charges for Services - Fees charged to outside users to cover the cost of providing services (e.g.
utility rates, golf course and swimming pool fees, transit fare box revenues).
Intergovernmental Revenues - Revenues received from other governmental agencies (i.e. federal,
state, and county). This category includes primarily grants and state - shared revenues (such as gas
and liquor tax revenues).
Operating Reserves - Accumulated fund balances in operating funds. Prudent reserves generally
are a minimum 8 -16% of annual operating budgets.
Other - All revenue sources which are not included in other categories. This includes primarily
investment income, program income, fines and forfeitures, and licenses.
Taxes - Tax assessments are levied for the support of the governmental entity. Sales tax is the
largest item in this category. It is followed by property tax, utility and franchise taxes, and various
other business taxes.
The first graph identifies the total revenue picture by category. The second revenue graph depicts
the relationship of the various revenue sources to each function.
Lastly, included is a graphic by major object (or type) of expenditure, net of double budgeted
expenditures.
20 - Exhibits • Supplemental Information
CITY OF ( MO /1W
TOTAL RESOURCES
BY CATEGORY
2014 BUDGET
TOTAL RESOURCES = $222,641,573
(Excludes Internal Service Funds and other double budgeted resources of $47,458,844)
Other
Capital Reserves $9,611,859
$24,025,155 4.3% Taxes
10.8% $61,119,229
27.5%
Operating Reserves
$25,214,548
11.3%
Borrowings
$25,929,800 Intergov't
11 6% $33,479,173
Charges for Services 15.0%
$43,261,809
19 4%
Supplemental Information • Exhibits — 21
CITY OF ` Yakma
TOTAL RESOURCES
BY CATEGORY AND SOURCE
2014 BUDGET
Police & Fire
i
l Government
Parks & Recreation
Street Operations
Street Construction
Gen Govt Const
G.O. Debt Service
• H i l l Special Revenue
Transit
Airport =1
Utilities
I
I I I I 1 1 i
($10.00) $0.0 $10.0 $20.0 $30.0 $40.0 $50.0 $60.0 $70.0 $80.0
• Taxes • Intergov't • Charges • Borrowings • Operating • Capital • Other
for Services Reserves Reserves
22 — Exhibits • Supplemental Information
CITY OF ( MO /1W
TOTAL EXPENDITURES
BY TYPE
2014 BUDGET
TOTAL EXPENDITURES = $179,702,865
(Excludes double budgeted expenditures of $43,011,842)
Debt Service
$10,247,611
5 7% Salaries
$52,827,671
Capital 29.4%
$58,729,093
32 7%
Benefits
Intergov't Supplies $17,632,966
$3,438,109 Other Services $8,130,403 9.8%
1.9% $28,697,012 4 5%
16.0%
Supplemental Information • Exhibits — 23