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12/07/2021 04.L. Ordinance adopting the 2022 Budget for the City of Yakima • rr 11 i�O enc u nrry 1 BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. 4.L. For Meeting of: December 7, 2021 ITEM TITLE: Ordinance adopting the 2022 Budget for the City of Yakima SUBMITTED BY: Bob Harrison, City Manager Jennifer Ferrer-Santa Ines, Director of Finance and Budget SUMMARY EXPLANATION: An Ordinance to adopt the final 2022 Budget for the City of Yakima is attached with support information. The 2022 Budget appropriation is attached to the Ordinance as Schedule A. The initial 2022 Budget was proposed by staff and presented at a series of public Study Sessions on October 5, 7, 12 and 14. Budget Hearings were held on November 1 and 16. The City is required by state statute to adopt a budget prior to the end of the preceding year. ITEM BUDGETED: Yes STRATEGIC PRIORITY: Public Trust and Accountability APPROVED FOR SUBMITTAL BY THE CITY MANAGER RECOMMENDATION: Pass Ordinance. ATTACHMENTS: Description Upload Date Type ID Ordinance 11/23/2021 Ordinance ❑ Cover Memo 11/23/2021 Cover Memo d Ordinance Schedule A 11/23/2021 Backup Material ❑ 2022 Revised Preliminary Budget 11/23/2021 Executive Summary 2 ORDINANCE NO. 2021- AN ORDINANCE adopting a budget for the City of Yakima, Washington, for the year 2022; and making appropriations for estimated expenditures. WHEREAS, Article II, Section 9 of the City Charter requires the City Manager to have prepared and submitted to the City Council a tentative budget for the fiscal year, required by October 1 prior to the beginning of the City fiscal year (RCW 35.33.051, 35.33.055); and WHEREAS, on or before the 1st day of October, 2021, a Preliminary Budget Summary for the City of Yakima for the year 2022 was duly filed with the Director of Finance and City Clerk of the City of Yakima and submitted to the Yakima City Council, all in accordance with applicable laws; and WHEREAS, notice was posted and published for public hearings held on November 1, 2021 and on November 16, 2021. The City Council held its formal public hearing on the budget all in accordance with applicable laws; and WHEREAS, subsequent to its formal public hearing, the City Council had the opportunity to make adjustments and changes to the budget as the Council deemed necessary or proper and determined the allowance in each item, department, classification and fund, all as set forth in the final budget document attached hereto, all in accordance with applicable laws; now, therefore BE IT ORDAINED BY THE CITY OF YAKIMA: Section 1. The budget for the City of Yakima, Washington, for the year 2022 is hereby adopted in its final form and content as set forth in the budget document entitled "City of Yakima, Annual Budget - 2022," which is attached hereto as Schedule A and incorporated by reference herein. There is hereby appropriated for expenditure during the year 2022 the aggregate amounts listed on the attached Schedule A for each separate fund of the City. Pursuant to Article II, Section 9 of the City Charter, the City Manager shall prepare and submit to the Council a tentative budget for the fiscal year. Once the Council adopts the annual budget, the Council authorizes the City Manager to adjust appropriations within individual funds at his/her discretion. Section 2. The City Clerk is directed to transmit a certified copy of the budget hereby adopted to the Division of Municipal Corporations in the Office of the State Auditor and to the Association of Washington Cities. Section 3. This ordinance is one required to be made by the laws of the State of Washington, and shall be in full force and effect on January 1, 2022, upon its passage and publication as provided by law. PASSED BY THE CITY COUNCIL, signed and approved this 7th day of December, 2021. Patricia Byers, Mayor ATTEST: Sonya Clear Tee, City Clerk Publication Date: Effective Date: 3 F ,, N ' 9 J ;\LG FINANCE DATE: November 23, 2021 TO: City Council FROM: Bob Harrison, City Manager Jennifer Ferrer-Santa Ines, Director of Finance and Budget RE: 2022 Proposed Operating Capital Budget Staff respectfully submits the revised Preliminary 2022 Budget for adoption, following the public hearings on Nov. 1st and 16th. A budget ordinance, schedule of proposed revenue and expenditures by fund, and a revised proposed budget document accompany this summary memo. Budget Summary. The following table summarizes the proposed budget across all funds. These include Government Capital funds, Enterprise Construction funds (primarily Water, Wastewater, Stormwater) and Internal Service fund expenditures for current and previous year projects, some of which roll over prior year unspent projects. 2022 RESERVE BALANCE SUMMARY Estimated 2022 2022 Inc in Estimated of 2022 Beg. Projected Proposed (Dec in) 2022 Ending Prop Fund Balance Revenues Expenditures Reserves Balance Exp General Fund' $ 14,141,728 $ 69,469377 $ 69,951,160 $ (481,783) $ 13,659,945 19.5`:•L Parks and Recreation 913,962 5,565,769 6,240,392 (674,623) 239,339 3.8% Street&Traffic Operations 1,133,950 6,478,808 6,518 584 (39,776) 1,094,174 16.8% General Government Subtotal 16,189,640 81,513,954 82,710,136 (1,196,182) 14,993,458 18.1% Other Governmental Operating Funds 12,755,307 29,267,731 18,831,776 10,435,955 23,191,262 123.1% Government Capital Funds 11,712,280 34,512,287 29,785 352 4,726,935 16,439,215 55.2% Enterprise Operating Funds 2 29,593,470 67,345,914 74,692,023 (7,346,109) 22,247,361 29.8% Enterprise Capital Funds2 32,186,736 35,539,541 49,407,226 (13,867,685) 18,319,051 37.1% Internal Service Funds 2,536,084 10,002,954 8,652,271 1,350,683 3,886,767 44.9% Employee Benefit Reserve 5,304,968 17,700,231 16,935,080 765,151 6,070,119 35.8% Risk Management Reserves 3,555,419 5,826,575 5,554,763 271,812 3,827,231 68.9% Debt Service&Agency Funds 2,516,094 7,100,227 7,100,455 (258) 2,515,836 35.4% Total $ 116,349,998 $ 288,809,414 $ 293,669,112 $(4,859,698) $ 111,490,300 38.0% As of October 2021 and with the review of the 2022 Preliminary Budget,City Council has approved reserves of at least 16.7%of total expenditures,which represent two months of annual spending. Enterprise Funds reserve target is 25%of total annual operating expenditures. General Fund includes.3%Criminal Justice and the Firemen's Pension funds 21t is customary for these funds to accumulate reserves for the purpose of upcoming expenditures toward new equipment and facility improvements,and then incurring large decreases in reserves when the projects move forward. The budget reflects the policy priorities of the city at the time of budget preparation. Every year circumstances change requiring course corrections. Grants, for example, are not budgeted if award has not been confirmed. Staff will bring 1st Quarter, and subsequent quarter,amendments for changes as they become known. 4 SUMMARY OF APPROPRIATIONS City of Yakima Annual Budget-2022 Schedule A SUMMARY OF APPROPRIATIONS BY FUND 2022 2022 Est Beg 2022 2022 Est End Inc in Fund Projected Budget Fund (Dec in) %of Fund/Description Balance Revenues Approp. Balance Reserves Budget 001 General Fund $ 11,742,691 $ 65,454,048 $ 65,934,703 $ 11,262,036 $ (480,655) 22.5 % 003 General Fund-Criminal Justice 853,049 2,972,000 2,982,205 842,844 (10,205) 1.0% 612 General Fund-Fire Relief&Pension 1,545,989 1,043,329 1,034,252 1,555,066 9,077 0.4% 123 Economic Development 53,014 - - 53,014 - -% 124 Community Development 3,310,094 1,641,453 1,630,269 3,321,278 11,184 0.6% 125 Community Relations 830,284 675,252 791,329 714,207 (116,077) 0.3 % 131 Parks&Recreation 913,962 5,565,769 6,240,392 239,339 (674,623) 2.1 % 136 Clean City Fund 17,251 820,430 818,662 19,019 1,768 0.3 % 141 Streets&Traffic 1,133,950 6,478,808 6,518,584 1,094,174 (39,776) 2.2% 142 Arterial Street 1,651,933 5,978,710 5,791,345 1,839,298 187,365 2.0% 144 Cemetery 139,817 362,500 364,894 137,423 (2,394) 0.1 % 150 Emergency Services 111,889 1,620,404 1,593,182 139,111 27,222 0.5 % 151 Public Safety Communications 247,894 2,554,697 2,605,919 196,672 (51,222) 0.9% 152 Police Grants 931,531 328,105 390,170 869,466 (62,065) 0.1 % 153 Public Safety Comm-Crim Just 0.3% 331,060 215,000 215,711 330,349 (711) 0.1 % 154 Public Safety Comm- Dispatch 342,398 2,026,929 2,099,575 269,752 (72,646) 0.7% 161 Downtown Yakima Impr District 79,309 185,750 184,300 80,759 1,450 0.1 % 162 Trolley 40,913 11,275 9,400 42,788 1,875 -% 163 Front St Business Improvement Area 4,278 3,700 3,700 4,278 % 170 Tourist Promotion(Cony Ctr) 356,490 2,109,875 2,045,236 421,129 64,639 0.7% 171 Capitol Theatre 30,198 407,211 437,038 371 (29,827) 0.1 % 172 PFD Rev-Convention Center 1,154,216 1,110,000 1,216,121 1,048,095 (106,121) 0.4% 173 Tourist Promotion Area 46,881 1,175,400 1,181,373 40,908 (5,973) 0.4% 174 PFD Rev-Capitol Theatre 539,713 1,019,750 683,391 876,072 336,359 0.2% 180 ARPA Fiscal Recovery Fund 4,188,076 13,000,000 2,561,507 14,626,569 10,438,493 0.9% 272 PFD Debt Service 158,154 1,401,788 1,402,046 157,896 (258) 0.5 % 281 Misc LTGO Bonds 17,239 3,216,822 3,216,822 17,239 - 1.1 % 303 Law&Justice Capital 0.3% 481,675 120,000 120,000 481,675 % 321 C.S.D. Capital Improvement 51,959 - - 51,959 - - 322 Capitol Theatre Construction 73,024 60,000 - 133,024 60,000 - 323 Yakima Revenue Development Area 89,280 9,400,000 6,724,249 2,765,031 2,675,751 2.3 % 331 Parks&Recreation Capital 269,803 766,049 860,782 175,070 (94,733) 0.3 % 332 Fire Capital 370,445 138,000 80,000 428,445 58,000 -% 333 Law&Justice Capital 693,377 254,444 654,194 293,627 (399,750) 0.2% City of Yakima 12022 Proposed Budget-1 5 2022 2022 Est Beg 2022 2022 Est End Inc in Fund Projected Budget Fund (Dec in) %of Fund/Description Balance Revenues Approp. Balance Reserves Budget 342 REET 1 3,033,495 1,676,448 4,645,933 64,010 (2,969,485) 1.6% 343 REET 2 1,305,700 1,592,000 2,225,419 672,281 (633,419) 0.8% 344 Streets Capital 2,508,890 14,257,522 8,189,665 8,576,747 6,067,857 2.8% 370 Convention Center Cap Impr 950,504 269,114 493,764 725,854 (224,650) 0.2% 392 Cumulative Reserve-Capital Impr 232,195 - - 232,195 - -% 421 Airport Operating 1,297,633 2,142,961 2,096,349 1,344,245 46,612 0.7% 422 Airport FAA 183,187 3,755,500 3,380,500 558,187 375,000 1.2% 441 Stormwater Operating 1,457,286 4,064,410 4,880,079 641,617 (815,669) 1.7% 442 Stormwater Capital 3,115,475 2,067,000 4,074,874 1,107,601 (2,007,874) 1.4% 462 Transit Operating 7,255,678 13,882,245 13,471,975 7,665,948 410,270 4.6% 464 Transit Capital 8,073,363 4,050,650 3,311,394 8,812,619 739,256 1.1 % 471 Refuse 2,683,292 8,999,200 8,896,291 2,786,201 102,909 3.0% 472 Wastewater Capital-Facilities 4,892,180 1,000,000 2,500,000 3,392,180 (1,500,000) 0.9% 473 Wastewater Operating 10,075,577 24,384,398 29,724,912 4,735,063 (5,340,514) 10.1 % 474 Water Operating 5,425,516 11,825,000 13,266,421 3,984,095 (1,441,421) 4.5 % 475 Irrigation Operating 1,398,488 2,047,700 2,355,997 1,090,191 (308,297) 0.8% 476 Wastewater Capital-Construction 2,612,569 7,967,000 9,743,883 835,686 (1,776,883) 3.3 % 477 Water Capital 3,142,343 3,562,000 5,601,885 1,102,458 (2,039,885) 1.9% 478 Wastewater Capital-Projects 5,495,521 1,000,000 4,116,282 2,379,239 (3,116,282) 1.4% 479 Irrigation Capital 4,672,098 12,137,391 16,678,407 131,082 (4,541,016) 5.7% 488 2008 Wastewater Bond 12,485 382,400 382,400 12,485 - 0.1 % 491 2004 Irrigation Bond 27,914 272,150 272,150 27,914 - 0.1 % 493 2003 Wastewater Bond 1,599,415 1,162,800 1,162,800 1,599,415 - 0.4% 512 Unemployment Comp 344,059 241,333 213,820 371,572 27,513 0.1 % 513 Employee Health Benefit Reserve 4,112,910 15,380,915 14,464,914 5,028,911 916,001 4.9% 514 Workers'Compensation Reserve 730,508 2,002,983 2,189,446 544,045 (186,463) 0.7% 515 Risk Management Reserve 3,555,419 5,826,575 5,554,763 3,827,231 271,812 1.9% 516 Wellness/EAP 117,490 75,000 66,900 125,590 8,100 - 551 Equipment Rental/Reserves(552) 1,787,243 5,696,295 4,215,139 3,268,399 1,481,156 1.4% 555 Environmental 362,325 422,250 498,294 286,281 (76,044) 0.2% 560 Public Works Administration 381,118 1,405,343 1,459,772 326,689 (54,429) 0.5 % 581 Utility Services 5,398 2,479,066 2,479,066 5,398 - 0.8% 632 YakCorps 1 (16,781) 652,267 652,267 (16,781) - 0.2% 633 Custodial Fund 2 710 Cemetery Trust 717,668 12,000 12,000 717,668 % $116,349,997 $288,809,414 $293,669,112 $111,490,299 $ (4,859,698) 100.0% Total Budget $405,159,411 $405,159,411 1 The negative ending fund balance in Fund 632 is a result of an accounting change required by Governmental Accounting Standards Board (GASB). A journal entry is necessary to reflect the adjusted beginning and ending fund balance. 2 The Custodial Fund(633),was approved by City Council on November 16,2021 to account for the resources that are held by the City of Yakima in a purely custodial capacity. This fund will allow for separate accountability of fiduciary custodial transactions as required by Governmental Accounting Standards Board(GASB)Statement 84. Items required to be in this fund will be moved by journal entry at the end of the year,and will not affect revenue or appropriation totals. 2-City of Yakima/2022 Proposed Budget 1- V.,1 6 • CITY OF (44111W...,\ (' : • 1.11 \'',C.)coy F::,;,I Yakima „„... ..... ..• ., '. el,'••.. ..•• k, , '... eo. ••• ,,,,',if Washington • ..‘„ ',RAT.) „.. eViSed 0 , , 4 IT a r VJ a • ,,. .4r 4 . 0 * / a. ,r .0 k.ip . I , t . • , , ,A. . OP 41Yr Um-1m_ V 111r1 °a' J . sit- U11111111111111Fr' "„,,, ,,„0401.4 , I ......, MP .ile..1.I. 1, ribe or ,,,w. .4 . t t r 4 .if I I* II . a R, . a ir , • 116:' '# 8 a fr -101 4 iik ,, ° 4• ,,...,). . . . ., ,e1 — 4 i ." 4 I ' qi,, M a . ;ill IL- S r 0 s ' w a i .,4 1 a 4„,0 1 44. . 1 .iimp ... , v P gell. , -- .4 7111 r "rip I.5. • 4 .IOW 4 4 - 4 * 4W, • . 11. ...0.........-- 11111W f as- .-_-- --,111 .0 ....A. --Aii _L._ 4, '''ftglinnim Ai .......,_ .. immi .. _ . , - . 0 i iniiitaisik i lik. ..........._ ii 11 . , 0 it ...tw 0.1414P rt 11119 Iiii*11 , - a b V. . *44ot %4 ' or 4 1 1 ''. 6 1!..4 I tillft4 . Tri. ow' .- ' . Wilk V .likill21141 .--Ar,---i. - • 7 x1 0 �1 14 f 'Y'<i it /71 ..••••••••-....4, .„ :.--N,. ...*0'00, „ . it..f•• ,, i • • • .P44% 8 INTRODUCTION This revised Preliminary 2022 Budget,for City Council's final consideration,incorporates all the direction given by City Council during the October 2021 Budget study sessions. Hearings were scheduled November 1st and 16th,with final adoption expected December 7th. City Council has made budget decisions enabling Finance to begin finalizing all the ordinances,reports and narratives that must all agree with each other in the final budget adoption. Council and staff have worked hard throughout this challenging process,exploring creative options and alternatives,to maintain current service levels. Those who participated in this budget include staff,whose input for each budget year is critical and who participate year-round providing service delivery and management within budget,even as unforeseen surprises occur. Also included is City Council,who exercise governance year-round and make policy final decisions and citizens,who have the opportunity to speak at study sessions and also at the annual budget hearings. Property Tax,Sales Tax and Utility and Franchise Taxes are the largest sources of revenue for the General Fund. When property owners thrive,property values increase;property tax is a significant funding source for city services. When businesses thrive,our sales tax revenue grows. The City serves the people who,in turn,fund the services provided by city government. Everyone participates in making Yakima a better place. Following the public study sessions in October 2021,Council finalized the proposed budget,achieving: • Established equipment replacement reserves for Police vehicles and Fire apparatus. • Increased Clean City funding in order to increase police presence,trash cleanup,add legal staff members,and enhanced code enforcement and outreach for people experiencing homelessness. • 5-year capital budgets,which were developed for all funds. Next year's budget is largely based on what is known about this year's difficulties. The budget process requires us to evaluate annually the city's priorities,between immediate services and infrastructure,across many funds,being mindful of long-term fiscal sustainability. The goals of the 2022 Budget are: • Achieve a balanced budget in every fund. • Assure prioritized services citywide. • Preserve General Fund's reserve,with a goal of 25%of expenditures. • Establish replacement funding for public safety equipment. Department directors and managers begin a continuous review of ongoing current year budget-to-actual expense management,formulate year-end estimates and project proposed budget figures based on known circumstances that pertain to each program under their management. The City relies on budgetary controls,with multiple levels of review,in large part,as part of the overall systems of checks and balances to manage service delivery and monitor that the underlying funding is being received as budgeted. Finance staff meet with managers quarterly and inform both the public and city council through quarterly financial reports in regularly scheduled public meetings. Three new funds were added in 2021: 1) A"Clean City Fund"(136) to account for the utility tax increase imposed on the City's waste systems'commercial refuse collection to meet Clean City program objectives. On November 1,2021, City Council also approved an increase in the refuse in-lieu tax under Yakima Municipal Code 7.64.030 from 15%to 20%to enhance program efforts. (the Clean City Fund was created in 2019 as a part of the General Fund,but became a Special Revenue fund in 2021),2) an"American Rescue Plan Act(ARPA) Fiscal Recovery Fund" (180) to account for the award and future expenditure of the American Rescue Plan Act funds and 3) beginning in late 2021,a"Custodial Fund" (633),created to account for the resources that are held by the City of Yakima in a purely custodial capacity. City of Yakima 12022 Proposed Budget-1 9 2022 Budget Challenges The 2022 Forecasts were all made while the COVID-19 emergency was still having an impact on the local economy and the city's delivery of services. While some revenues continue to recover,some are still struggling,such as Lodging Tax,which is recovering,but is still well below current forecasts for 2021. Other revenues have similar,but lesser,impacts to the ability to forecast. The statutory 1% cap on Property Tax has not kept pace with 1) inflationary effects on materials and services nor 2) the personnel costs required by collective bargaining agreements(CBA's). This forces the City every year to have conversations with our community prioritizing general fund expenditures. An informed and engaged community is critical to resident understanding of challenges,opportunities and the difficulties inherent in allocating very limited revenue changes year over year. The following chart summarizes how the preliminary 2022 projected budget currently forecasts city-wide beginning and ending fund balances by fund groupings,showing the effect of proposed revenues and expenditures. In this table,Capital Funds,Enterprise Construction Funds,and Internal Service Funds include approved expenditures and unspent balances carried forward from prior year. The City's General Government reserve balance decreased by$1,196,182,mainly due to an increase in medical and dental insurance rates,however,still remains within the approved service level,at 18.1%. 2022 RESERVE BALANCE SUMMARY Estimated 2022 2022 Inc in Estimated %of 2022 Beg. Projected Proposed (Dec in) 2022 Ending Prop Fund Balance Revenues Expenditures Reserves Balance Exp General Fund 1 $ 14,141,728 $ 69,469,377 $ 69,951,160 $ (481,783) $ 13,659,945 19.5 % Parks and Recreation 913,962 5,565,769 6,240,392 (674,623) 239,339 3.8% Street&Traffic Operations 1,133,950 6,478,808 6,518,584 (39,776) 1,094,174 16.8% General Government Subtotal 16,189,640 81,513,954 82,710,136 (1,196,182) 14,993,458 18.1 % Other Governmental Operating Funds 12,755,307 29,267,731 18,831,776 10,435,955 23,191,262 123.1 % Government Capital Funds 11,712,280 34,512,287 29,785,352 4,726,935 16,439,215 55.2% Enterprise Operating Funds 2 29,593,470 67,345,914 74,692,023 (7,346,109) 22,247,361 29.8% Enterprise Capital Funds 2 32,186,736 35,539,541 49,407,226 (13,867,685) 18,319,051 37.1 % Internal Service Funds 2,536,084 10,002,954 8,652,271 1,350,683 3,886,767 44.9% Employee Benefit Reserve 5,304,968 17,700,231 16,935,080 765,151 6,070,119 35.8% Risk Management Reserves 3,555,419 5,826,575 5,554,763 271,812 3,827,231 68.9% Debt Service&Agency Funds 2,516,094 7,100,227 7,100,485 (258) 2,515,836 35.4% Total $ 116,349,998 $ 288,809,414 $ 293,669,112 $(4,859,698) $ 111,490,300 38.0% As of October 2021 and with the review of the 2022 Preliminary Budget,City Council has approved reserves of at least 16.7%of total expenditures,which represent two months of annual spending. Enterprise Funds reserve target is 25%of total annual operating expenditures. 1 General Fund includes.3%Criminal Justice and the Firemen's Pension funds. 2 It is customary for these funds to accumulate reserves for the purpose of upcoming expenditures toward new equipment and facility improvements,and then incurring large decreases in reserves when the projects move forward. 2-City of Yakima/2022 Proposed Budget 10 Financial Plan/Forecast-General Fund(001,003,612) Financial planning provide insight into the City's financial ability to meet current and future obligations. The forecast below displays a five-year outlook of projected revenues and expenditures and also demonstrates the City's efforts towards achieving minimum fund balance financial policies. The forecast can also serve as a tool to foster discussions on long-term financial direction. 2020 2021 2022 2023 2024 2025 2026 Actual YE Est Budget Budget Budget Budget Budget Beginning Balance $ 10,757,521 $ 13,295,598 $ 14,141,728 $ 13,659,945 $ 11,296,778 $ 6,895,896 $ 290,462 Revenues Sales Tax 22,915,342 25,901,997 27,087,000 28,170,480 29,297,299 30,469,191 31,687,959 Other Tax&Assmnts 760,317 1,031,633 1,082,000 1,103,640 1,125,713 1,148,227 1,171,192 Utility&Franchise Tax 18,482,716 19,644,904 20,325,209 20,731,713 21,146,347 21,569,274 22,000,659 Property Tax 10,289,701 9,179,830 9,335,615 9,522,327 9,712,774 9,907,029 10,105,170 Licenses&Permits 1,607,364 1,676,901 1,704,700 1,738,794 1,773,570 1,809,041 1,845,222 Intergovernmental 7,379,313 4,219,553 3,865,140 3,942,443 4,021,292 4,101,718 4,183,752 Charges for Services 2,872,647 3,519,198 3,449,776 3,518,772 3,589,147 3,660,930 3,734,149 Fines/Forf/Trans/Misc 3,172,053 2,522,515 2,619,937 2,672,336 2,725,783 2,780,299 2,835,905 Total Revenues 67,479,453 67,696,531 69,469,377 71,400,505 73,391,925 75,445,709 77,564,008 Expenditures Salaries&Wages 36,762,786 38,389,123 40,540,111 42,972,518 45,550,869 48,283,921 51,180,956 Personnel Benefits 12,973,817 13,707,298 14,214,195 15,067,047 15,971,070 16,929,334 17,945,094 Supplies,Equip&Misc 1,707,137 2,782,637 1,774,869 1,845,864 1,919,699 1,996,487 2,076,346 Services&Charges 10,819,260 9,081,986 9,234,890 9,604,286 9,988,457 10,387,995 10,803,515 Capital Outlays 267,798 470,763 104,000 109,200 114,660 120,393 126,413 Debt Service 276,641 206,540 206,390 210,518 214,728 219,023 223,403 Transfers 2,133,937 2,212,053 3,876,705 3,954,239 4,033,324 4,113,990 4,196,270 Total Expenditures 64,941,376 66,850,400 69,951,160 73,763,672 77,792,807 82,051,143 86,551,997 Est End Fund Balance $ 13,295,598 $ 14,141,729 $ 13,659,945 $ 11,296,778 $ 6,895,896 $ 290,462 $ (8,697,527) Policy Rsv Amt-16.7% $ 10,845,210 $ 11,164,017 $ 11,681,844 $ 12,318,533 $ 12,991,399 $ 13,702,541 $ 14,454,183 Net Fund Balance $ 2,450,388 $ 2,977,712 $ 1,978,101 $ (1,021,755) $ (6,095,503) $(13,412,079) $(23,151,710) • Revenue projections provide for a conservative growth of 2%,except for Sales Tax,which is shown at 4%. • Salaries and benefits are projected at 6%growth to provide for labor contract agreements. • Supplies,services and intergovernmental have a growth factor of 4%. • Capital outlay,projected at 5%growth,provides for a systematic methodology to replace and repair City buildings,vehicles and other equipment in a timely manner. Funds budgeted for the previous year and not spent are brought forward to the next year. • Debt Service is projected at 2%growth. • Transfers-out to other funds are projected at 2%. The schedule above begins to show a deficit after meeting ending fund balance requirements and reserve policy at the end of 2023. This is attributable to operational costs growing at a higher percent than revenue growth. Without a levy lid lift,property tax growth of 1%plus new construction is not sufficient to maintain existing services.It is important to review alternative revenue sources and monitor expenditures closely. City of Yakima 12022 Proposed Budget-3 11 Financial Plan/Forecast-City Wide Financial planning provide insight into the City's financial ability to meet current and future obligations. The forecast below displays a five-year outlook of projected revenues and expenditures and also demonstrates the City's efforts towards achieving minimum fund balance financial policies. The forecast can also serve as a tool to foster discussions on long-term financial direction. 2020 2021 2022 2023 2024 2025 2026 Actual YE Est Budget Budget Budget Budget Budget Beginning Balance $101,056,370 $118,758,709 $116,349,998 $111,490,300 $ 83,380,384 $ 46,355,521 $ (189,849) Revenues Sales Tax 32,006,992 34,936,245 37,334,000 38,827,360 40,380,454 41,995,672 43,675,499 Other Tax&Assmnts 5,380,170 6,417,155 7,176,000 7,319,520 7,465,910 7,615,228 7,767,533 Utility&Franchise Tax 19,228,464 20,725,789 21,872,139 22,309,582 22,755,774 23,210,889 23,675,107 Property Tax 21,275,210 21,915,076 22,228,250 22,672,815 23,126,271 23,588,796 24,060,572 Licenses&Permits 3,016,025 3,104,373 3,181,700 3,245,334 3,310,241 3,376,446 3,443,975 Intergovernmental 26,952,594 58,688,452 55,974,376 57,093,864 58,235,741 59,400,456 60,588,465 Charges for Services 53,479,258 56,362,781 58,299,465 59,465,454 60,654,763 61,867,858 63,105,215 Fines/Forf/Trans/Misc 66,217,537 52,385,115 82,743,484 70,000,000 70,700,000 71,407,000 72,121,070 Total Revenues 227,556,250 254,534,986 288,809,414 280,933,929 286,629,154 292,462,345 298,437,436 Expenditures Salaries&Wages 59,105,338 65,071,734 68,366,881 72,468,894 76,817,028 81,426,050 86,311,613 Personnel Benefits 34,883,023 39,161,752 40,009,167 42,409,717 44,954,300 47,651,558 50,510,651 Supplies,Equip&Misc 5,997,009 8,369,692 7,167,379 7,454,074 7,752,237 8,062,326 8,384,819 Services&Charges 54,080,676 60,438,565 70,204,478 73,012,657 75,933,163 78,970,490 82,129,310 Capital Outlays 25,277,940 59,175,769 70,629,061 74,160,514 77,868,540 81,761,967 85,850,065 Debt Service 17,012,811 9,232,318 9,079,440 10,761,029 10,976,250 11,195,775 11,419,691 Transfers 13,497,114 15,493,868 28,212,706 28,776,960 29,352,499 29,939,549 30,538,340 Total Expenditures 209,853,911 256,943,698 293,669,112 309,043,845 323,654,017 339,007,715 355,144,489 Est End Fund Balance $118,758,709 $116,349,997 $111,490,300 $ 83,380,384 $ 46,355,521 $ (189,849) $(56,896,902) Policy Rsv Amt-16.7% $ 35,045,603 $ 42,909,598 $ 49,042,742 $ 51,610,322 $ 54,050,221 $ 56,614,288 $ 59,309,130 Net Fund Balance $ 83,713,106 $ 73,440,399 $ 62,447,558 $ 31,770,062 $ (7,694,700) $(56,804,137) $(116,206,032' • Revenue projections provide for a conservative growth of 2%,except for Sales Tax,which is shown at 4%. In 2022 the Fines/Forfeitures,/Transfers and Miscellanous revenue projection includes$15.0 million in debt proceeds,consequently,2023 projection is a historical average of the previous 4 years,and then 1%growth for 2024-2026. • Salaries and benefits are projected at 6%growth to provide for labor contract agreements. • Supplies,services and intergovernmental have a growth factor of 4%. • Capital outlay,projected at 5%growth,provides for a systematic methodology to replace and repair City buildings,vehicles and other equipment in a timely manner. Funds budgeted for the previous year and not spent are brought forward to the next year. • Debt Service is projected at an additional$1.5 million planned debt in 2023,and 2%growth from 2024-2026. • Transfers-out to other funds are projected at 2%. The schedule above begins to show a deficit after meeting ending fund balance requirements and reserve policy at the end of 2024. This is attributable to operational costs growing at a higher percent than revenue growth.Without a levy lid lift,property tax growth of 1%plus new construction is not sufficient to maintain existing services. It is important to review alternative revenue sources and monitor expenditures closely. 4-City of Yakima/2022 Proposed Budget 12 The following two charts compare the 2021 projected year-end estimate and preliminary proposed 2022 budget by fund groupings. The first chart showing expenditures and the second chart showing revenues. 2021 VS.2022 EXPENDITURE BUDGET COMPARISON 2021 2022 2021 vs.2022 Year-End Proposed Budget Estimate Expenditures %Change General Fund $ 66,850,401 $ 69,951,160 4.6% Parks 5,574,682 6,240,392 11.9% Streets&Traffic 6,287,622 6,518,584 3.7% General Government Total 78,712,705 82,710,136 5.1% Other Governmental Operating Funds 24,170,419 18,831,776 (22.1)% Government Capital Funds 31,491,871 29,785,352 (5.4)% Enterprise Operating Funds 62,670,040 74,692,023 19.2% Enterprise Capital Funds 21,346,449 49,407,226 131.5% Internal Service Funds 9,503,980 8,652,271 (9.0)% Employee Benefit Reserves 16,724,961 16,935,080 1.3% Risk Management Reserve 5,140,960 5,554,763 8.0% Debt Service&Agency Funds 7,182,312 7,100,485 (1.1)% Total-Citywide Budget $ 256,943,698 $ 293,669,112 14.3% 2021 VS. 2022 REVENUE BUDGET COMPARISON 2021 2022 2021 vs.2022 Year-End Proposed Budget Estimate Revenue %Change General Fund $ 67,696,532 $ 69,469,377 2.6% Parks 5,428,200 5,565,769 2.5% Streets&Traffic 6,506,149 6,478,808 (0.4)% General Government Total 79,630,881 81,513,954 2.4% Other Governmental Operating Funds 31,460,793 29,267,731 (7.0)% Government Capital Funds 23,472,896 34,512,287 47.0% Enterprise Operating Funds 62,496,689 67,345,914 7.8% Enterprise Capital Funds 20,435,573 35,539,541 73.9% Internal Service Funds 8,391,259 10,002,954 19.2% Employee Benefit Reserves 16,293,711 17,700,231 8.6% Risk Management Reserve 5,229,871 5,826,575 11.4% Debt Service&Agency Funds 7,123,313 7,100,227 (0.3)% Total-Citywide Budget $ 254,534,986 $ 288,809,414 13.5% City of Yakima 12022 Proposed Budget-5 1 3 ......_„„„.......‘,,,‘‘‘‘‘ 1:: Yr 7 i A..‘ •.•e ...7 r ••,. bC.:.,,, ..e '0, ' ''', • • , 1 f ...*.. :.:;;..1 1, . .#0 4, .. ..:* i iii fit, •........,• _t, ...Tr oit eriii, ,i) - N -- 11% pORAT�.D ...- 6-City of Yakima I 2022 Proposed Budget 14 SUMMARY OF APPROPRIATIONS City of Yakima Annual Budget-2022 Schedule A SUMMARY OF APPROPRIATIONS BY FUND 2022 2022 Est Beg 2022 2022 Est End Inc in Fund Projected Budget Fund (Dec in) %of Fund/Description Balance Revenues Approp. Balance Reserves Budget 001 General Fund $ 11,742,691 $ 65,454,048 $ 65,934,703 $ 11,262,036 $ (480,655) 22.5 % 003 General Fund-Criminal Justice 853,049 2,972,000 2,982,205 842,844 (10,205) 1.0% 612 General Fund-Fire Relief&Pension 1,545,989 1,043,329 1,034,252 1,555,066 9,077 0.4% 123 Economic Development 53,014 - - 53,014 - -% 124 Community Development 3,310,094 1,641,453 1,630,269 3,321,278 11,184 0.6% 125 Community Relations 830,284 675,252 791,329 714,207 (116,077) 0.3 % 131 Parks&Recreation 913,962 5,565,769 6,240,392 239,339 (674,623) 2.1 % 136 Clean City Fund 17,251 820,430 818,662 19,019 1,768 0.3 % 141 Streets&Traffic 1,133,950 6,478,808 6,518,584 1,094,174 (39,776) 2.2% 142 Arterial Street 1,651,933 5,978,710 5,791,345 1,839,298 187,365 2.0% 144 Cemetery 139,817 362,500 364,894 137,423 (2,394) 0.1 % 150 Emergency Services 111,889 1,620,404 1,593,182 139,111 27,222 0.5 % 151 Public Safety Communications 247,894 2,554,697 2,605,919 196,672 (51,222) 0.9% 152 Police Grants 931,531 328,105 390,170 869,466 (62,065) 0.1 % 153 Public Safety Comm-Crim Just 0.3% 331,060 215,000 215,711 330,349 (711) 0.1 % 154 Public Safety Comm- Dispatch 342,398 2,026,929 2,099,575 269,752 (72,646) 0.7% 161 Downtown Yakima Impr District 79,309 185,750 184,300 80,759 1,450 0.1 % 162 Trolley 40,913 11,275 9,400 42,788 1,875 -% 163 Front St Business Improvement Area 4,278 3,700 3,700 4,278 % 170 Tourist Promotion(Cony Ctr) 356,490 2,109,875 2,045,236 421,129 64,639 0.7% 171 Capitol Theatre 30,198 407,211 437,038 371 (29,827) 0.1 % 172 PFD Rev-Convention Center 1,154,216 1,110,000 1,216,121 1,048,095 (106,121) 0.4% 173 Tourist Promotion Area 46,881 1,175,400 1,181,373 40,908 (5,973) 0.4% 174 PFD Rev-Capitol Theatre 539,713 1,019,750 683,391 876,072 336,359 0.2% 180 ARPA Fiscal Recovery Fund 4,188,076 13,000,000 2,561,507 14,626,569 10,438,493 0.9% 272 PFD Debt Service 158,154 1,401,788 1,402,046 157,896 (258) 0.5 % 281 Misc LTGO Bonds 17,239 3,216,822 3,216,822 17,239 - 1.1 % 303 Law&Justice Capital 0.3% 481,675 120,000 120,000 481,675 % 321 C.S.D. Capital Improvement 51,959 - - 51,959 - - 322 Capitol Theatre Construction 73,024 60,000 - 133,024 60,000 - 323 Yakima Revenue Development Area 89,280 9,400,000 6,724,249 2,765,031 2,675,751 2.3 % 331 Parks&Recreation Capital 269,803 766,049 860,782 175,070 (94,733) 0.3 % 332 Fire Capital 370,445 138,000 80,000 428,445 58,000 -% 333 Law&Justice Capital 693,377 254,444 654,194 293,627 (399,750) 0.2% City of Yakima 12022 Proposed Budget-7 15 2022 2022 Est Beg 2022 2022 Est End Inc in Fund Projected Budget Fund (Dec in) %of Fund/Description Balance Revenues Approp. Balance Reserves Budget 342 REET 1 3,033,495 1,676,448 4,645,933 64,010 (2,969,485) 1.6% 343 REET 2 1,305,700 1,592,000 2,225,419 672,281 (633,419) 0.8% 344 Streets Capital 2,508,890 14,257,522 8,189,665 8,576,747 6,067,857 2.8% 370 Convention Center Cap Impr 950,504 269,114 493,764 725,854 (224,650) 0.2% 392 Cumulative Reserve-Capital Impr 232,195 - - 232,195 - -% 421 Airport Operating 1,297,633 2,142,961 2,096,349 1,344,245 46,612 0.7% 422 Airport FAA 183,187 3,755,500 3,380,500 558,187 375,000 1.2% 441 Stormwater Operating 1,457,286 4,064,410 4,880,079 641,617 (815,669) 1.7% 442 Stormwater Capital 3,115,475 2,067,000 4,074,874 1,107,601 (2,007,874) 1.4% 462 Transit Operating 7,255,678 13,882,245 13,471,975 7,665,948 410,270 4.6% 464 Transit Capital 8,073,363 4,050,650 3,311,394 8,812,619 739,256 1.1 % 471 Refuse 2,683,292 8,999,200 8,896,291 2,786,201 102,909 3.0% 472 Wastewater Capital-Facilities 4,892,180 1,000,000 2,500,000 3,392,180 (1,500,000) 0.9% 473 Wastewater Operating 10,075,577 24,384,398 29,724,912 4,735,063 (5,340,514) 10.1 % 474 Water Operating 5,425,516 11,825,000 13,266,421 3,984,095 (1,441,421) 4.5 % 475 Irrigation Operating 1,398,488 2,047,700 2,355,997 1,090,191 (308,297) 0.8% 476 Wastewater Capital-Construction 2,612,569 7,967,000 9,743,883 835,686 (1,776,883) 3.3 % 477 Water Capital 3,142,343 3,562,000 5,601,885 1,102,458 (2,039,885) 1.9% 478 Wastewater Capital-Projects 5,495,521 1,000,000 4,116,282 2,379,239 (3,116,282) 1.4% 479 Irrigation Capital 4,672,098 12,137,391 16,678,407 131,082 (4,541,016) 5.7% 488 2008 Wastewater Bond 12,485 382,400 382,400 12,485 - 0.1 % 491 2004 Irrigation Bond 27,914 272,150 272,150 27,914 - 0.1 % 493 2003 Wastewater Bond 1,599,415 1,162,800 1,162,800 1,599,415 - 0.4% 512 Unemployment Comp 344,059 241,333 213,820 371,572 27,513 0.1 % 513 Employee Health Benefit Reserve 4,112,910 15,380,915 14,464,914 5,028,911 916,001 4.9% 514 Workers'Compensation Reserve 730,508 2,002,983 2,189,446 544,045 (186,463) 0.7% 515 Risk Management Reserve 3,555,419 5,826,575 5,554,763 3,827,231 271,812 1.9% 516 Wellness/EAP 117,490 75,000 66,900 125,590 8,100 - 551 Equipment Rental/Reserves(552) 1,787,243 5,696,295 4,215,139 3,268,399 1,481,156 1.4% 555 Environmental 362,325 422,250 498,294 286,281 (76,044) 0.2% 560 Public Works Administration 381,118 1,405,343 1,459,772 326,689 (54,429) 0.5 % 581 Utility Services 5,398 2,479,066 2,479,066 5,398 - 0.8% 632 YakCorps 3 (16,781) 652,267 652,267 (16,781) - 0.2% 633 Custodial Fund 4 710 Cemetery Trust 717,668 12,000 12,000 717,668 % $116,349,997 $288,809,414 $293,669,112 $111,490,299 $ (4,859,698) 100.0% Total Budget $405,159,411 $405,159,411 3 The negative ending fund balance in Fund 632 is a result of an accounting change required by Governmental Accounting Standards Board (GASB). A journal entry is necessary to reflect the adjusted beginning and ending fund balance. 4 The Custodial Fund(633),was approved by City Council on November 16,2021 to account for the resources that are held by the City of Yakima in a purely custodial capacity. This fund will allow for separate accountability of fiduciary custodial transactions as required by Governmental Accounting Standards Board(GASB)Statement 84. Items required to be in this fund will be moved by journal entry at the end of the year,and will not affect revenue or appropriation totals. 8-City of Yakima/2022 Proposed Budget 16 PRELIMINARY ADOPTED BUDGET BY FUNCTIONAL GROUPING ----ov..YA iN. i- :. .i jc.4,4...***E' it.:\ %,C.):if . 0 ..:joi 0%,4,-!!1.!holidor..#i b_F1'.4�4ec: t 4 ���� PRELIMINARY ADOPTED BUDGET BY FUNCTIONAL GROUPING Department directors and managers take part in continuous review of 2021 (current-year) budget-to-actual expense management, 2021 year-end estimates and 2022 proposed budget figures. The City relies on budgetary controls, with multiple levels of review, as part of the overall system of checks and balances to manage service delivery and to monitor that the underlying funding is being received as budgeted. All figures in the following pages, as in most of the preceding pages tables and graphs, are directly imported from the City's automated accounting system. Due to rounding, some totals in these charts may not correspond exactly with the sums in previous charts within this document. NOTE: Amended budget is subject to change due to 4th Quarter budget amendments that are pending Council approval. City of Yakima/2022 Proposed Budget-9 17 2020 2021 2021 2022 2022 Actual Amended Year-End Proposed vs 2021 Expenditures Expenditures Budget Estimate Expenditures Est General Government (001/003/612) City Management $ 2,446,242 $ 1,097,550 $ 765,550 $ 773,420 1.0% Indigent Defense 1,078,094 1,050,000 1,050,000 1,100,000 4.8% City Council 127,494 284,786 266,858 284,804 6.7% Clean City Fund 1 243,350 91,399 n/a City Clerk/Records 366,023 791,632 791,632 685,847 (13.4)% Human Resources 493,023 818,769 805,069 855,521 6.3 % Legal 1,720,293 2,057,127 1,968,364 2,192,864 11.4% Municipal Court 1,642,758 1,763,503 1,762,323 1,824,344 3.5 % Planning 815,926 796,695 796,695 796,804 -% Code Administration 1,813,871 1,958,326 1,955,726 2,023,085 3.4% City Hall Facility 359,230 435,460 345,627 483,711 40.0% Economic Development 152,223 342,145 465,389 593,261 27.5 % Police 28,555,011 30,571,418 30,316,460 31,565,791 4.1 % Fire 15,650,247 15,742,516 16,044,876 16,226,271 1.1 % Information Technology 2,739,420 4,371,084 4,342,429 4,195,854 (3.4)% Intergovernmental 236,474 170,288 143,638 106,261 (26.0)% Transfers 2,117,457 2,212,053 2,212,053 3,876,705 75.3 % City Service Reimbursement (3,421,923) (3,660,375) 7.0% Financial Services 1,278,140 2,515,279 2,515,279 2,753,052 9.5 % Police Pension 730,654 872,197 872,197 700,130 (19.7)% Firemen's Relief&Pension 1,180,451 1,176,390 1,176,390 1,034,252 (12.1)% Parking 222,036 275,239 273,489 101,986 (62.7)% Purchasing 237,338 447,309 447,309 449,893 0.6% Engineering 735,620 955,317 954,969 987,677 3.4% Total General Fund 64,941,375 70,796,482 66,850,399 69,951,158 4.6% Parks&Recreation 4,449,770 5,861,436 5,574,682 6,240,392 11.9% Street&Traffic Operations 7,337,581 6,352,464 6,287,622 6,518,584 3.7% Total General Government Funds $ 76,728,726 $ 83,010,382 $ 78,712,703 $ 82,710,134 5.1 % 1 In 2021,the Clean City Program was moved to its own fund(136). Any expenditures showing within the General Fund in 2021 will be moved by journal entry as needed. I0-City of Yakima/2022 Proposed Budget 18 2022 Estimated Increase 2022 Beginning Ending (Decrease) Projected Fund Fund In Fund Revenues Revenue Balance Balance Balance General Fund $ 69,469,377 $ 14,141,728 $ 13,659,945 $ (481,783) Parks&Recreation 5,565,769 913,962 239,339 (674,623) Street&Traffic Operations 6,478,808 1,133,950 1,094,174 (39,776) Total General Government Funds $ 81,513,954 $ 16,189,640 $ 14,993,458 $ (1,196,182) City of Yakima 12022 Proposed Budget-11 19 2020 2021 2021 2022 2022 Actual Amended Year-End Proposed vs 2021 Expenditures Expenditures Budget Estimate Expenditures Est Other Governmental Operating Funds Economic Development $ 110,750 $ - $ - $ - n/a Community Development 2,016,187 7,518,654 2,422,169 1,630,269 (32.7)% Community Relations 656,738 777,084 747,083 791,329 5.9% Clean City Fund 2 - 349,609 349,609 818,662 134.2% Cemetery 314,484 333,823 330,910 364,894 10.3 % Emergency Services 1,567,571 1,545,544 1,545,544 1,593,182 3.1 % Public Safety Comm/CJ 0.3%(151/153) 2,476,180 2,767,604 2,767,504 2,821,630 2.0% Public Safety Communications Dispatch 1,918,683 2,038,191 2,031,123 2,099,575 3.4% Police Grants 469,808 946,013 886,986 390,170 (56.0)% Downtown Improvement District 165,499 184,750 182,250 184,300 1.1 % Trolley(Yakima Interurban Lines) 12,667 15,463 17,085 9,400 (45.0)% Front St Business Improvement Area 3,315 5,100 3,700 3,700 -% Tourist Promotion(Cony Ctr) 1,008,885 1,750,465 1,161,215 2,045,236 76.1 % Capitol Theatre 437,851 472,212 472,212 437,038 (7.4)% PFD Revenue-Convention Center 1,040,989 1,165,162 1,165,162 1,216,121 4.4% Tourist Promotion Area 428,049 507,440 507,440 1,181,373 132.8% PFD Revenue-Capitol Theatre 996,057 670,761 670,761 683,391 1.9% ARPA Fiscal Recovery Fund 3 - 6,755,760 8,909,664 2,561,507 (71.3)% Total Other Governmental Operating Funds $ 13,623,713 $ 27,803,635 $ 24,170,417 $ 18,831,777 (22.1)% Government Capital Funds Arterial Street $ 1,556,077 $ 9,168,008 $ 5,941,897 $ 5,791,345 (2.5)% C.B.D.Capital Improvement 4 - 34,492 33,221 - (100.0)% Capitol Theatre Construction 1,247 505,000 491,746 - (100.0)% Yakima Rev Development Area 2,743,384 12,320,788 11,954,356 6,724,249 (43.8)% Parks&Recreation Capital 1,148,548 153,958 161,453 860,782 433.1 % Fire Capital 262,759 1,760,000 146,499 80,000 (45.4)% Law&Justice Capital/CJ 0.3%(303/333) 370,886 5,070,763 415,003 774,194 86.6% Public Works Trust Construction 926,560 2,172,392 2,172,392 4,645,933 113.9% REET 2 Capital Construction 860,470 2,275,739 2,275,739 2,225,419 (2.2)% Street Capital Fund 334,676 3,590,707 3,306,848 8,189,665 147.7% Convention Center Capital Improvement 8,644,764 4,361,257 4,361,257 493,764 (88.7)% Cumulative Reserve for Capital Improvement 173,846 231,460 231,460 - (100.0)% Total Government Capital Funds $ 17,023,217 $ 41,644,564 $ 31,491,871 $ 29,785,351 (5.4)% 2 The Clean City Fund was created mid-year 2021 for the purpose of segregating revenues received from the utility tax increase on waste systems' commercial refuse collection and the expenditures incurred to meet program objectives. 3 The ARPA Fiscal Recovery Fund was created mid-year 2021 for the purpose of segregating revenues received through and the expenditures eligible under the American Rescue Plan Act(ARPA). 4 The Central Business District(CBD)Capital Improvement fund was used for the development and ongoing implementation of capital funding programs designed to benefit Yakima's Central Business District. The last major project budgeted in this fund in 2018 was the design and construction of a new downtown plaza,however,in November of 2018,the City Council-following an advisory vote by City of Yakima voters that rejected the project-voted not to continue with the construction of the Plaza. I2-City of Yakima/2022 Proposed Budget 20 2022 Estimated Increase 2022 Beginning Ending (Decrease) Projected Fund Fund In Fund Revenues Revenue Balance Balance Balance Other Governmental Operating Funds Economic Development 5 $ - $ 53,014 $ 53,014 $Community Development 1,641,453 3,310,094 3,321,278 11,184 Community Relations 675,252 830,284 714,207 (116,077) Clean City Fund 820,430 17,251 19,020 1,769 Cemetery 362,500 139,817 137,424 (2,393) Emergency Services 1,620,404 111,889 139,111 27,222 Public Safety Comm/CJ 0.3%(151/153) 2,769,697 578,954 527,021 (51,933) Public Safety Communications Dispatch 2,026,929 342,398 269,752 Police Grants 328,105 931,531 869,466 (62,065) Downtown Improvement District 185,750 79,309 80,759 1,450 Trolley(Yakima Interurban Lines) 11,275 40,913 42,788 1,875 Front St Business Impr Area 3,700 4,278 4,278 Tourist Promotion(Cony Ctr) 2,109,875 356,490 421,129 64,639 Capitol Theatre 407,211 30,198 370 (29,828) PFD Revenue-Convention Center 1,110,000 1,154,216 1,048,095 (106,121) Tourist Promotion Area 1,175,400 46,881 40,909 (5,972) PFD Revenue-Capitol Theatre 1,019,750 539,713 876,071 336,358 ARPA Fiscal Recovery Fund 13,000,000 4,188,076 14,626,569 10,438,493 Total Other Governmental Operating Funds $ 29,267,731 $ 12,755,306 $ 23,191,261 $ 10,508,601 Government Capital Funds Arterial Street $ 5,978,710 $ 1,651,933 $ 1,839,297 $ 187,364 C.B.D.Capital Improvement - 51,959 51,959 Capitol Theatre Construction 60,000 73,024 133,024 60,000 Yakima Rev Development Area 9,400,000 89,280 2,765,030 2,675,750 Parks&Recreation Capital 766,049 269,803 175,069 (94,734) Fire Capital 138,000 370,445 428,445 58,000 Law&Justice Capital/CJ 0.3%(303/333) 374,444 1,175,053 775,303 (399,750) Public Works Trust Construction 1,676,448 3,033,495 64,010 (2,969,485) BEET 2 Capital Construction 1,592,000 1,305,700 672,281 (633,419) Street Capital Fund 14,257,522 2,508,890 8,576,747 6,067,857 Convention Center Capital Improvement 269,114 950,504 725,854 (224,650) Cumulative Reserve for Capital Improvement - 232,195 232,195 Total Government Capital Funds $ 34,512,287 $ 11,712,281 $ 16,439,214 $ 4,726,933 5 The General Fund function-Economic Development(123)and the Economic Development Fund(250)were merged into one at the end of 2020. Management will determine how to retire the fund balance. City of Yakima 12022 Proposed Budget-13 21 2020 2021 2021 2022 2022 Actual Amended Year-End Proposed vs 2021 Expenditures Expenditures Budget Estimate Expenditures Est Enterprise Operating Funds Airport Operating Fund $ 1,447,562 $ 2,392,171 $ 2,203,371 $ 2,096,349 (4.9)% Stormwater Operating 3,658,532 4,280,045 4,204,073 4,880,079 16.1 % Transit 7,767,667 14,214,801 10,030,505 13,471,975 34.3 % Refuse 7,665,253 8,123,704 8,379,149 8,896,291 6.2% Wastewater Operating 20,696,748 25,527,400 25,185,146 29,724,912 18.0% Water Operating 9,412,511 10,809,130 10,764,780 13,266,421 23.2% Irrigation Operating 1,808,173 1,932,974 1,903,016 2,355,997 23.8% Utility Services 6 2,068,905 n/a Total Enterprise Operating Funds $ 54,525,351 $ 67,280,225 $ 62,670,040 $ 74,692,024 19.2% Enterprise Capital Funds Airport FAA $ 1,645,036 $ 4,755,521 $ 3,838,529 $ 3,380,500 (11.9)% Stormwater Capital 1,282,811 6,133,710 2,221,865 4,074,874 83.4% Transit Capital Reserve 40,203 3,034,015 70,826 3,311,394 n/a Wastewater Facilities Capital Reserve 439,712 2,773,942 657,880 2,500,000 280.0% Wastewater Construction 3,745,608 4,701,673 3,510,427 9,743,883 177.6% Water Capital 408,374 6,104,183 4,272,383 5,601,885 31.1 % Wastewater Capital 577,328 3,512,974 1,501,945 4,116,282 174.1 % Irrigation Capital 1,549,984 6,572,951 5,272,594 16,678,407 216.3 % Total Enterprise Capital Funds $ 9,689,056 $ 37,588,969 $ 21,346,449 $ 49,407,225 131.5 % Internal Service Funds Equipment Rental/Reserves(551/552) $ 3,880,644 $ 5,043,416 $ 4,696,703 $ 4,215,139 (10.3)% Environmental Fund 196,576 944,819 916,467 498,294 (45.6)% Public Works Administration 1,600,625 1,376,932 1,365,897 1,459,772 6.9% Utility Services 6 - 2,545,613 2,524,913 2,479,066 (1.8)% Total Internal Service Funds $ 5,677,845 $ 9,910,780 $ 9,503,980 $ 8,652,271 (9.0)% Employee Benefit Reserves Unemployment Compensation $ 168,434 $ 195,171 $ 192,421 $ 213,820 11.1 % Employees Health Benefit 12,349,034 13,941,681 14,236,281 14,464,914 1.6% Workers'Compensation 1,605,871 2,229,310 2,229,360 2,189,446 (1.8)% Wellness/EAP Fund 38,198 66,900 66,900 66,900 —% Total Employee Benefit Reserves $ 14,161,537 $ 16,433,062 $ 16,724,962 $ 16,935,080 1.3 % Risk Management Reserve Risk Management $ 3,652,108 $ 5,688,793 $ 5,140,960 $ 5,554,763 8.0% Total Risk Management Reserve $ 3,652,108 $ 5,688,793 $ 5,140,960 $ 5,554,763 8.0% 6 Utility Services moved from and Enterprise fund to an Internal Service fund in 2021. I4-City of Yakima/2022 Proposed Budget 22 2022 Estimated Increase 2022 Beginning Ending (Decrease) Projected Fund Fund In Fund Revenues Revenue Balance Balance Balance Enterprise Operating Funds Airport Operating Fund $ 2,142,961 $ 1,297,633 $ 1,344,246 $ 46,613 Stormwater Operating 4,064,410 1,457,286 641,617 (815,669) Transit 13,882,245 7,255,678 7,665,948 410,270 Refuse 8,999,200 2,683,292 2,786,201 102,909 Wastewater Operating 24,384,398 10,075,577 4,735,063 (5,340,514) Water Operating 11,825,000 5,425,516 3,984,095 (1,441,421) Irrigation Operating 2,047,700 1,398,488 1,090,191 (308,297) Utility Services Total Enterprise Operating Funds $ 67,345,914 $ 29,593,470 $ 22,247,361 $ (7,346,109) Enterprise Capital Funds Airport FAA $ 3,755,500 $ 183,187 $ 558,187 $ 375,000 Stormwater Capital 2,067,000 3,115,475 1,107,601 (2,007,874) Transit Capital Reserve 4,050,650 8,073,363 8,812,619 739,256 Wastewater Facilities Capital Reserve 1,000,000 4,892,180 3,392,180 (1,500,000) Wastewater Construction 7,967,000 2,612,569 835,685 (1,776,884) Water Capital 3,562,000 3,142,343 1,102,458 (2,039,885) Wastewater Capital 1,000,000 5,495,521 2,379,240 (3,116,281) Irrigation Capital 12,137,391 4,672,098 131,082 (4,541,016) Total Enterprise Capital Funds $ 35,539,541 $ 32,186,736 $ 18,319,052 $ (13,867,684) Internal Service Funds Equipment Rental/Reserves(551/552) $ 5,696,295 $ 1,787,243 $ 3,268,399 $ 1,481,156 Environmental Fund 422,250 362,325 286,281 (76,044) Public Works Administration 1,405,343 381,118 326,689 (54,429) Utility Services 2,479,066 5,398 5,398 Total Internal Service Funds $ 10,002,954 $ 2,536,084 $ 3,886,767 $ 1,350,683 Employee Benefit Reserves Unemployment Compensation $ 241,333 $ 344,059 $ 371,572 $ 27,513 Employees Health Benefit 15,380,915 4,112,910 5,028,911 916,001 Workers'Compensation 2,002,983 730,508 544,046 (186,462) Wellness/EAP Fund 75,000 117,490 125,590 8,100 Total Employee Benefit Reserves $ 17,700,231 $ 5,304,967 $ 6,070,119 $ 765,152 Risk Management Reserve Risk Management $ 5,826,575 $ 3,555,419 $ 3,827,231 $ 271,812 Total Risk Management Reserve $ 5,826,575 $ 3,555,419 $ 3,827,231 $ 271,812 City of Yakima 12022 Proposed Budget-15 23 2020 2021 2021 2022 2022 Actual Amended Year-End Proposed vs 2021 Expenditures Expenditures Budget Estimate Expenditures Est Debt Service Public Facility District PFD Debt Service $ 8,808,718 $ 1,393,696 $ 1,393,696 $ 1,402,046 0.6% General Obligation Miscellaneous LTGO Bonds 3,843,344 3,666,950 3,294,960 3,216,822 (2.4)% Utility Bonds 2008 Wastewater Bond 251,468 386,850 386,850 382,400 (1.2)% 2004 Irrigation Bond 292,427 272,550 272,550 272,150 (0.1)% 2003 Wastewater Bond 1,141,000 1,164,200 1,164,200 1,162,800 (0.1)% Total Debt Service 14,336,957 6,884,246 6,512,256 6,436,218 (1.2)% Trust and Agency Funds YakCorps Agency Fund 423,403 658,057 658,057 652,267 (0.9)% Custodial Fund 7 n/a Cemetery Trust 12,000 12,000 12,000 12,000 —% Total Trust and Agency Funds 435,403 670,057 670,057 664,267 (0.9)% Total Debt Service&Agency Funds $ 14,772,360 $ 7,554,303 $ 7,182,313 $ 7,100,485 (1.1)% Total City Budget $ 209,853,910 $ 296,914,714 $ 256,943,698 $ 293,669,112 14.3 % 7 The Custodial Fund,required by GASB 84, was approved by City Council on November 16,2021. Items required to be in this fund will be moved by journal entry at the end of the year. This should not affect totals. I6-City of Yakima/2022 Proposed Budget 24 2022 Estimated Increase 2022 Beginning Ending (Decrease) Projected Fund Fund In Fund Revenues Revenue Balance Balance Balance Debt Service Public Facility District PFD Debt Service $ 1,401,788 $ 158,154 $ 157,897 $ (257) General Obligation Miscellaneous LTGO Bonds 3,216,822 17,239 17,239 Utility Bonds 2008 Wastewater Bond 382,400 12,485 12,485 2004 Irrigation Bond 272,150 27,914 27,914 2003 Wastewater Bond 1,162,800 1,599,415 1,599,415 Total Debt Service 6,435,960 1,815,207 1,814,950 (257) Trust and Agency Funds YakCorps Agency Fund 8 652,267 (16,781) (16,781)Custodial Fund Cemetery Trust 12,000 717,668 717,668 Total Trust and Agency Funds 664,267 700,887 700,887 Total Debt Service&Agency Funds $ 7,100,227 $ 2,516,094 $ 2,515,837 $ (257) Total City Budget $ 288,809,414 $ 116,349,997 $ 111,490,301 $ (4,859,696) 8 The negative ending fund balance in the YakCorps Agency Fund is a result of an accounting change required by Governmental Accounting Standards Board(GASB). A journal ently is necessary to reflect the adjusted beginning and ending fund balance. City of Yakima 12022 Proposed Budget-17 25 ...,....,„,,,,,,,,,,,,,,‘,‘‘ "4.-- 1 . , ., M.--"e.. ••Tr ", ..44„ .. ..00 1#0 , . ,,,,, 1.-0..:col'ori **-. 1 %,e0.... ::,. ,1 -•, . %. ..1 * I ,,, , •.. .• i 4,. •••...•.•• ,,,gs 4....- lli��l - R�QRAT�p �� 18-City of Yakima I 2022 Proposed Budget 26 CHARTS & TABLES 2022 GENERAL FUND REVENUE $69,469,377 Sales Tax $27,087,000 39% Fines Forfeits,Trans&Misc $2,619,937 4% Other Taxes&Assessments Charges for Services $1,082,000 $3,449,776 2% 5% Intergov't $3,865,140 6% Licenses&Permits $1,704,700 2% Utility&Franchise Tax Property Tax __ $20,325,209 $9,335,615 29% 13% 2022 GENERAL FUND EXPENDITURES $69,951,160 Personnel Benefits $14,214,195 20% 11111 Supplies,Equip,Misc $1,774,869 3% Services&Charges $9,234,890 13% Debt Service $206,390 0% Salaries&Wages $40,540,111 Capital Outlays&Debt Service 58% $310,390 0% Transfers $3,876,705 6% City of Yakima 12022 Proposed Budget-19 27 2022 CITYWIDE REVENUE $288,809,414 Sales Tax $37,334,000 13% Other Taxes&Assessments Fines,Forfeits,Trans&Misc - $7,176,000 $82,743,484 2% 29% Utility&Franchise Tax $21,872,139 8% Property Tax $22,228,250 8% Licenses&Permits $3,181,700 1% Charges for Services $58,299,465 Intergovernmental 20% $55,974,376 19% 2022 CITYWIDE EXPENDITURES $293,669,112 Personnel Benefits Supplies,Equip,Misc $40,009,167 $7,167,379 14% 2% Services&Charges $70,204,478 24% Salaries&Wages $68,366,881 23% Transfers $28,212,706 10% Capital Outlays $70,629,061 Debt Service 24% $9,079,440 3% 20-City of Yakima/2022 Proposed Budget 28 2022 REVENUES BY SOURCE General %of %of Fund Total City-wide Total Sales Tax $ 27,087,000 39% $ 37,334,000 13 % Utility&Franchise Taxes 20,325,209 29% 21,872,139 8 % Property Tax 9,335,615 13 % 22,228,250 8 % Charges for Services 3,449,776 5 % 58,299,465 20 % Intergovernmental Revenues 3,865,140 6% 55,974,376 19 % Other Taxes&Assessments 1,082,000 2% 7,176,000 2 % Licenses and Permits 1,704,700 2% 3,181,700 1 % Fines and Forfeitures 1,418,000 2% 1,518,000 1 % Transfers % 28,212,706 10 % Miscellaneous Revenue 1,201,937 2% 53,012,777 18 % $ 69,469,377 $ 288,809,413 2022 EXPENDITURES BY CATEGORY General %of %of Fund Total City-wide Total Transfers $ 3,876,705 6% $ 28,212,706 10 % Salaries&Wages 40,540,111 58% 68,366,881 23 % Personnel Benefits 14,214,195 20% 40,009,167 14 % Operating Supplies 1,774,869 3 % 7,167,379 2 % Professional Services 9,234,890 13 % 70,204,478 24 % Capital Outlays 104,000 —% 70,629,061 24 % Debt Service 206,390 —% 9,079,440 3 % $ 69,951,160 $ 293,669,112 City of Yakima 12022 Proposed Budget-21 29 ......„.„„,,.......,‘,,‘‘‘‘‘ T- Yelr 7 I ..-- .... % l‘C: ,,, e 0 • • • , • • , • e 5 m": ... ; ''''#,C).... .:Al i, 4, -.. ... * , % •. •• : voi ,,,, •.... ....• (ept, iii •,. erj • „is ......- ',‘ poR ATED ..-- __,._ ‘v•NN.,,,,,,,....."-'`':' ‘‘,‘ 22-City of Yakima I 2022 Proposed Budget