HomeMy WebLinkAbout10/28/2014 03 2015 Preliminary Budget PresentationBUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No. 3.
For Meeting of: October 28, 2014
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ITEM TITLE:
SUBMITTED BY:
SUMMARY EXPLANATION:
2015 Preliminary Budget Presentation
Tony O'Rourke, City Manager
Cindy Epperson, Director of Finance & Budget
We are pleased to present an Executive Summary of the 2015 Preliminary Budget as required
by State Law. Attached to this packet is:
• Memorandum of Transmittal
• Power Point Presentation summarizing the major elements of the 2015 Preliminary
Budget; and
• A spreadsheet that presents a three year budget comparison:
o 2013 Actual Expenditures
o 2014 Amended Budget and Year-end Estimates for Expenditures
o 2015 Proposed Expenditures and Projected Revenues
o Status of Beginning and Ending 2015 Reserves by Fund
The Preliminary Budget Summary document will be distributed to Council on November 4,
2014. That meeting will also include set dates for the formal Public Hearings on the budget
(November 18, 2014 and December 2, 2014) and the Ad Valorem (i.e. Property Tax) levy on
November 18, 2014.
Resolution: Ordinance:
Other (Specify):
Contract: Contract Term:
Start Date: End Date:
Item Budgeted: Amount:
Funding Source/Fiscal
Impact:
Strategic Priority:
Insurance Required? No
Mail to:
Phone:
APPROVED FOR
SUBMITTAL:
RECOMMENDATION:
ATTACHMENTS:
Description
Transmittal Memo
Power Point Presentation
3 Year Comparison
Public Trust and Accountability
City Manager
Upload Date
10/24/2014
10/24/2014
10/24/2014
Type
Cover Memo
Cover Memo
Cover Memo
Od`C'1C `!. OF Y1!!s' (I }r MANAGER
129 North Sec(md Street
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CITY 11111 }<rkr`rtea, VIVt. w:r gton 9
MEMORANDUM
TO: Honorable Mayor and Members of the Yakima City Council
FROM: Tony O'Rourke, City Manager
DATE: October 24, 2014
SUBJECT: City Manager's 2015 Proposed Preliminary Budget Summary
I am pleased to submit for City Council review and consideration the 2015 Preliminary Budget.
This budget is balanced, prudent, $2.3 million less than 2014 projected year end expenditures,
and responsive to the City Council's and community's strategic priorities and needs. The 2015
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 due to the sluggish recovery from the Great
Recession. Although the recession officially ended in June 2009, its effects on the local economy,
working-class families, and City finances persist. That said, the City has to confront ongoing,
and increasing demands for services, aging infrastructure, deferred capital improvements, and
rising healthcare and pension costs.
Given these economic challenges, the FY 2015 budget is not proposing any new taxes to further
burden businesses and residents. In fact, the combined general operating and debt service tax
levy will actually decrease by $0.0163 per thousand or 0.5% over the 2014 combined tax levy.
We also recommend delaying proposed stormwater, wastewater, and water rate increases until
2016. The utility system capital improvements necessitating the rate increase can be financed by
excess operating and capital reserves in 2015. We will recommend a small refuse rate increase
of $0.98 to $2.00 per month, given the last rate change was in 2008.
This budget is driven by the results of the Annual Citizen Survey that expressed a strong need
to address the City's public safety challenges, deferred infrastructure backlog, community
appearance, and economic development. 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 attached PowerPoint presentation scheduled
for Tuesday, October 28 at 10:00 a.m. The proposed budget does not reflect a proposed $1.2
million contract between the City and Union Gap for fire prevention and suppression services
since this proposed agreement is not scheduled for City Council review and consideration until
November 4, 2014. If the City Council adopts the agreement, we will reflect these revenues and
expenses in the final 2015 budget public hearing and scheduled adoption December 2, 2014.
CITY BUDGET
The proposed FY 2015 City Budget, including all funds, is balanced. The FY 2015 expenditure
budget is $205,608,534 and represents $2.3 million or 1.1% decrease over the projected FY 2014
year-end expenditures. The 2015 expenditure budget of $205.6 million is supported by revenue
of $197.5 million and surplus reserves of $8.1 million. At the end of 2015, citywide budget
reserves are projected to be at $49.2 million, or 24% of 2015 budget expenditures compared to
21% reserves in FY 2014. The following chart highlights expenditures and changes in the 2014
projected year-end budget and proposed 2015 budget.
2014 ESTIMATE / 2015 BUDGET COMPARISON
Revenues Expenditures
2014 2015 2014 2015
Year -End Projected % Year -End Proposed 0/0
Fund Estimate Revenue Change Estimate Expenditures Change
General $58,211,636 $61,061,259 4.9% $58,966,443 $60,738,516 3.0%
Parks and Recreation 4,519,614 4,709,455 4.2% 4,545,867 4,713,152 3.7%
Street & Traffic Operations 4,639,310 4,718,610 1.7% 4,814,188 5,049,379 4.9%
General Government Subtotal 67,370,560 70,489,324 4.6% 68,326,497 70,501,047 3.2%
Utilities/Other Operating 69,452,999 70,705,373 1.8% 68,154,653 72,043,937 5.7%
Capital Improvement 45,047,419 32,705,773 (27.4%) 48,562,205 39,023,263 (19.6%)
Risk Management Reserves 3,367,000 3,684,000 9.4% 3,643,852 3,715,688 2.0%
Employee Benefit Reserves 12,071,536 12,509,688 3.6% 13,127,720 12,865,238 (2.0%)
G.O. Bond Debt Service 3,187,741 4,700,411 47.5% 3,346,079 4,709,429 40.7%
Utility Revenue Bond Debt Svc 2,146,286 2,134,280 (0.6%) 2,144,786 2,132,155 (0.6%)
Trust and Agency Funds 625,171 620,277 (0.8%) 622,671 617,777 (0.8%)
Total $203,268,712 $197,549,126 (2.8%) $207,928,463 $205,608,534 (1.1%)
GENERAL GOVERNMENT FUND
The Preliminary 2015 General Government fund expenditure budget, which represents most
core city services, is balanced at $70,501,047 and represents a $2.1 million or 3.2% increase over
the 2014 year-end projected expenditure budget. The revenue budget is $70,489,324 or a 4.6%
increase over the projected 2014 year end revenues. The 2015 year-end General Government
operating reserves are projected to be $9,916,093 or 14.1% of 2015 expenditures.
The General Government operating reserves are less than the City's financial management goal
of 16.7%, due to the use of $1.1 million in operating reserves to purchase the four Tiger Mart
sites in 2014. Once all four sites are sold, the operating reserve will be reimbursed and
increased to 15.6%.
The 2015 General Government incremental revenue growth of $2.1 million is based on the
following:
➢ Proposed 1% inflation adjustment in property tax levy plus an estimate $407,000
of 1.5% new construction. The combined general operating and debt
service property tax levy will decrease by 0.5% over 2014 combined tax levy.
➢ 4.25% growth in sales tax (6% annual growth the past three years) $650,000
➢ Franchise and utility tax growth of 5.3% $873,000
➢ Charge for services growth of 2.9% $195,000
➢ Proposed sale of two Tiger Mart sites $400,000
BALANCING STRATEGY
We have balanced the 2015 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: $1,025,000
➢ Health plan cost containment strategies - Savings: $1,000,000
Based on the prior 18 month rolling average of the City's health care costs, our third
party administrator set next year's self-insurance "premiums" with increases of 10% for
employee and 48% for dependent unit rates and a projected $2,000,000 increase to the
City of which employees would absorb 20% or $400,000, and the City would absorb $1.6
million. This increase resulted in a citywide increase of $2.0 million in healthcare
premiums. As a result, I directed our third party administrator to develop cost
containment recommendations for our self-insured plan. We are going forward with
implementing several of the recommendations that will save the plan an estimated $1.6
million, with about $1.0 million in General Government funds.
KEY COST DRIVERS
The principal cost increases in the proposed 2015 budget are due to:
• Personnel cost of living wage increases (average 1.3%) $600,000
• Indigent defense unfunded mandate $550,000
• 10 new full time equivalent staff $830,000
o Police Officers (2)
o Police Recruiter (.5)
o Police Public Information Officer (1)
o Police Applications Specialist (1)
o Training Program Coordinator (1)
o Emergency Management Specialist (.5)
o Crime & Intelligence Analyst (1)
o Economic Development Dept. Assistant (1)
o Public Disclosure Request Assistant (.5)
o Prosecuting Attorney (1)
o Legal Assistant (.5)
• Proposed PERS 2 mandated pension rate contribution increase
from 9.2% to 11.2% as of July 1, 2015
• Dispatch center relocation
$260,000
$300,000
PUBLIC SAFETY INVESTMENTS
To ensure a safe and secure environment for our residents, businesses, and visitors, the City will
continue to place a premium on crime prevention and suppression, fire services, gang free
initiative, and emergency preparedness and response management. To that end, new 2015
public safety investments include:
• Expanding police force presence on federal and state crime $181,000
task forces by adding two additional officers to the police department
• Partnering with Yakima County to invest in a new police firearms $150,000
training center
• Acquisition of a new fire department ladder truck ($1,250,000)
and fire engine ($650,000) - financing over 10 -year term at $205,000
annually
• Expansion of indigent defense services required by Washington
Supreme Court ($400,000) and the related addition of 1.5 prosecution
staff ($150,000). Current indigent defense costs are $600,000.
$205,000
$550,000
• New communication/dispatch facility in partnership with Yakima $300,000
County 911 - initial construction investment of $970,000 with annual
debt service and operation cost increase of $300,000
• Continuation of the police succession planning/leadership development $25,000
program by the creation of four (4) new promotional police corporal
positions
• Transition the emergency preparedness function from the County with $135,000
a full -year funding of GFI/Emergency Management Director ($83,000)
and Emergency Preparedness program assistant ($52,000)
• Parking enforcement technology $30,000
ECONOMIC DEVELOPMENT INVESTMENTS
Given the community's desire for more jobs, retail opportunities, enhanced air service, vital
downtown and economic diversification, the 2015 budget includes the following initiatives to
foster a more robust and vital economy.
• Cascade mill site environmental restoration, land acquisition and
infrastructure ($1,900,000 funded via LIFT and Yakima County
SIED program)
• New downtown special events (Viva la Musica concert series,
Country Americana, kids events, and more) - costs will be offset by
event revenues
$3,500,000
$102,000
• Airport marketing funded with matching 50% federal grant $250,000
• Investment in the SunDome operations to drive more event $100,000
activity and economic impact
• Relocation of Visitors Information Center to downtown to enhance $130,000
visibility, access, and visitation
• New Economic Development Assistant to address current $66,000
workload and expand economic development outreach and growth
• Strategic planning, marketing and brand development plan for $50,000
Yakima -based wineries, craft brews, and hard cider businesses
BUILT ENVIRONMENT INVESTMENTS
The City's infrastructure and overall appearance are critical components of the community's
image, quality, and vitality. The restoration of the City's built environment is a critical
components to its future success. To that end, the following 2015 budget initiatives are
proposed.
• Airport improvements to upgrade aging asphalt, taxiway lights,
signs, and markings in order to meet FAA regulations (90% funded
by a federal grant)
$12,500,000
• Complete North 1St Street, landscaping, and sidewalk design for $1,300,000
Phase 1 between Martin Luther King Jr. and N Street
• Martin Luther King Jr. underpass sidewalk and artwork $600,000
• Randall Park facility and parking upgrades funded with $900,000
community donations, a state grant and REET 1 funds
• Southeast Community Center facility improvements
• Stormwater system improvements on North 1St Street, mill site,
and Randall Park
• Wastewater capital improvements - Race Street piping project
• Water system improvements - North 1St water main and
treatment plant intake
• Irrigation system improvements - Fruitvale canal work and
Nelson Dam/West Yakima irrigation system
• Three (3) new transit buses
$100,000
$2,000,000
$4,700,000
$2,500,000
$1,250,000
$1,300,000
• Replace city hall elevators (60 years old) $345,000
PARTNERSHIP INVESTMENTS
The City of Yakima is committed to building cooperative and reciprocal partnerships with local,
regional, state, federal, non-profit, and private partnerships to enhance the vitality and quality
of life in Yakima. To that end, the City proposes the following partnership investments in 2015.
• Capitol Theatre management fee and capital improvements $282,000
($50,000 increase)
• Convention Center management fee ($13,000 increase) $721,000
• Washington Fruit Community Center improvements (with YPAL) $100,000
• Yakima County Development Association / New Vision $33,000
• Sports Commission ($2,000 increase) $59,000
PUBLIC TRUST AND ACCOUNTABILITY INVESTMENT
In response to the public's dissatisfaction with the City's infrastructure, and desire to improve
public engagement, customer service, and fiscal accountability, the 2015 budget includes the
following investments.
• Capital improvements - the following chart summarizes the "top ten" $40.5 million
capital projects in the 2015 budget. The list totals $27,387,600 and
represents 13% of the total City budget.)
Description
2015 TOP 10 CAPITAL PROJECTS
2015
Proposed
Expenditures Funding Source
Airport Taxiway Improvements
Yakima Rev Development Area (LIFT)
Fire Apparatus - Ladder Truck & Engine
Wastewater Speedway/Race St Piping
Stormwater - N. 1st Street Improvements
Water - Domestic Main N. 1st Street
N. 1st Street Revitalization
Replace Three Busses
Water Treatment Plant - Modifications to River
Arterial Streets - 64th and Tieton Signal
$12,500,000
3,500,000
1,854,000
1,800,000
1,790,000
1,400,000
1,300,000
1,300,000
1,000,000
943,600
$27,387,600
Grant/Match
State/Match/County SIED Program
State LOCAL Capital Lease
Capital Rates/Reserves
Capital Rates/Reserves
Capital Rates/Reserves
Balance from Underpass Project
Transit Sales Tax
Capital Rates/Reserves
State Grants/Gas Tax
• Customer/leadership training to continue to develop City employees $100,000
• Annual citizen survey to obtain community input on priorities $35,000
and City performance
• Purchasing procurement system to automate current manual $26,000
processes. The County will fund 47% of this purchase since it
shares the purchasing function with the City
• Conduct the annual employee survey $130,000
CONCLUSION
The 2015 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 stewardship 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.
Most importantly, I would like to recognize the City Council for its leadership in adopting the
Strategic Plan, Five Year Financial Plan, and conducting annual Citizen Surveys, which have served as
the foundation for the proposed 2015 budget. The Council should also be recognized for its
commitment to move the City toward a brighter and more sustainable future.
PROPOSED 2015 BUDGET HIGHLIGHTS
> The proposed FY 2015 budget is balanced and prudent at $205.6 million, or $2.3 million
less than projected 2014 year-end expenditures.
> Budget is focused and responsive to:
■ City Council's Strategic Priorities
• Safe community
• Economic growth
• Infrastructure
• Partnerships
■ Delivery of core services — Police, Fire, Public Works -
- 67% of General Government budget
■ Capital infrastructure and equipment investment - $40 million
■ Living within existing resources with small refuse increase of 98c to $2 per month.
■ The combined general operating and debt service property tax levy will decrease
by $0.0163 per thousand or 0.5% from the 2014 combined tax levy.
■ Proposed water, wastewater and stormwater rate increases will be deferred until
2016. Required utility capital improvements necessitating utility rate increases will
proceed by using utility operating and capital reserves.
PROPOSED 2015 BUDGET HIGHLIGHTS
> Budget challenges include:
■ Slow recovery from the Great Recession — "new normal"
■ Personnel costs are paramount expenditure drivers - 68.9% of General Government
budget (70.4% 2014; 72.3% in 2013)
■ Ongoing struggle to manage past, present, and future health insurance and pension costs
■ City's aging infrastructure, utility systems, facilities, and rolling stock require increased
investments
■ Long-term federal and state assistance is declining, while unfunded mandates increase
(indigent defense)
> Budget balancing strategy includes:
■ $800,000 savings from 9 position attrition and RIF — repurposed for capital investment
■ 2% payroll vacancy savings of $1,025,000
■ $1,600,000 health care cost containment measures — of which $1 million relates to General
Government funds.
■ Budget maintains adequate operating reserve of $49.2 million or 24% (21% in 2014) for all
funds and $9.9 million, or 14.1% general government fund operating reserves. Once all 4
Tiger Mart properties are sold, the general government operating reserves should increase
to 15.6%.
■ Uses $8.1 million available reserves, primarily for Capital Improvements.
> Budget does not include $1.2 million expense/revenue related to proposed City of Yakima and
Union Gap Fire Services Contract. Awaiting City Council review of that agreement before
adjusting the 2015 budget.
2015 PROPOSED BUDGET
2014 Year- 2015
End Estimate Budget % Change
General Government $68,326,497 $70,501,047 3.2%
Enterprise & Non -General Gov't 139,601,966 135,107,487 (3.2%)
Total Proposed Budget $207,928,463 $205,608,534 (1.1%)
2015 PROPOSED BUDGET
Summary of Proposed FY 2015 Budget (All Funds -numbers in millions)
Estimated 2015 2015 Estimated
2015 Beg. Projected Projected Use of 2015 Ending
Fund Balance Revenue Expenditure Reserves Fund Balance
General Fund $8.4 $61.1 $60.7 $0.3 $8.7
Parks and Recreation 0.6 4.7 4.7 (0.0) 0.6
Street & Traffic Operations 1.0 4.7 5.0 (0.3) 0.7
General Government Subtotal $9.9 $70.5 $70.5 ($0.0) $9.9
Utilities/Other Operating 18.7 70.7 72.0 (1.3) 17.4
Capital Improvement 20.0 32.7 39.0 (6.3) 13.7
Risk Management Reserves 0.7 3.7 3.7 (0.0) 0.7
Employee Benefit Reserves 4.8 12.5 12.9 (0.4) 4.5
G.O. Bond Debt Service 0.3 4.7 4.7 (0.0) 0.3
Utility Revenue Bond Debt Servic, 1.8 2.1 2.1 0.0 1.8
Trust and Agency Funds 1.0 0.6 0.6 0.0 1.0
Total $57.2 $197.5 $205.6 ($8.1) $49.2
2015 PROPOSED EXPENDITURE BUDGET
$205.6 Million
Utilities/Other
Operating
$ 72.0
35.0%
Risk
Management
Capital Reserves
Improvement $3.7
$39.0 1.8%
19.0%
G.O. Bond Debt
Service
Employee $4.7
Benefit / 2.3%
Reserves
$12.9 / Utility Revenue
6.3% Bond Debt
Service
/ $2.1
1.0%
Street & Traffic Parks and
Operations Recreation
$5.1 $4.7
2.5% 2.3%
Trust and Agency
Funds
$0.6
0.3%
General Fund
$60.8
29.5%
2015 GENERAL GOVERNMENT
EXPENDITURES BY DEPARTMENT
$70.5 Million
Fire
$10.7
15.1%
City
Manage ment
$6.9
9.8%
Legal
$1.5
2.2%
Municipal
Court
$1.4
2.0%
Finance
$4.1
5.8%
Police
$26.9
38.1%
Trans fe rs/
Debt Svc
$5.5
7.9%
Community
De ve lopment
$2.8
4.0%
Public Works
$9.8
13.8%
Utilitie s &
Engine ering
$0.9
1.3%
2015 GENERAL GOVERNMENT
REVENUE & RESERVES
$80.4 Million
-2015vs.2014- %of
2013 2014 Percent 2015 Percent Increase 2015
Source Actual Estimate Change Budget Change (Decrease) Total
General Sales Tax $14.5 $15.3 6.0% $16.0 4.2% $0.7 22.7%
Crim. Justice Sales Tax 2.9 3.1 4.5% 3.2 4.9% 0.2 4.5%
Property Tax 15.7 15.9 1.5% 16.3 2.6% 0.4 23.2%
Utility Taxes 14.7 16.0 9.0% 16.9 5.4% 0.9 24.0%
Charges for Services 6.0 6.7 10.7% 6.9 2.9% 0.2 9.8%
State Shared Revenue 4.0 4.4 9.4% 4.6 4.7% 0.2 6.5%
Fines and Forfeitures 1.6 1.6 0.4% 1.6 2.2% 0.0 2.3%
Other Taxes 1.5 1.4 (5.1%) 1.4 0.7% 0.0 2.0%
Other Revenue 0.4 0.6 54.6% 1.1 84.0% 0.5 1.6%
Transfers from other Funds 1.3 1.4 7.5% 1.5 5.4% 0.1 2.1%
Other Intergovernmental 0.1 0.1 4.0% 0.1 (2.9%) 0.0 0.1%
Licenses and Permits 0.8 0.8 2.6% 0.9 2.3% 0.0 1.2%
Total Revenue $63.5 $67.4 6.1% $70.5 4.6% $3.1 100.0%
Beginning Fund Balance 10.9 9.9 (8.8%) 9.9 (0.1%) 0.0
Total Resources $74.4 $77.3 3.9% $80.4 4.0% $3.1
2015 GENERAL GOVERNMENT
EXPENDITURES BY CLASSIFICATION
$70.5 Million
Salaries &
Benefits
$48.6
68.9%
Supplies
$2.7
3.8%
Other Services
& Charges
$9.8
13.8%
Intergov t
Services
$2.1
3.0%
Capital Outlay
$0.1
0.1%
Inte rfund
Transfers
$4.1
5.9%
Debt Service
$3.2
4.5%
GENERAL GOVERNMENT
REVENUE BUDGET OVERVIEW
> Major Budget Balancing Strategy
• 2% Vacancy rate
• Health Plan Cost Containment
> Revenue Assumptions
• Proposed 1% inflation adjustment in property taxes plus an estimate of
1.5% new construction
• 4.25% growth in sales tax (three past year growth 6.0%)
• Utility tax growth of 5.3%
• Charge for services growth of 2.9%
• Sale of two Tiger Mart locations
> Cost Drivers
• Cost of living payroll increase (avg. 1
• Indigent Defense unfunded mandate
$1,025,000
($1.6 m total budget) $1,000,000
• Additional staffing (10 positions)
- Police Officers (2)
- Police Recruiter (.5)
- Police Public Information Officer (1)
- Police Applications Specialist (.5)
- Training Program Coordinator (1)
- Emergency Management Specialist (.5)
• Pension rate increase (2.0% 7/1/15)
• Dispatch Center Relocation
.3%)
- current cost is $600,000
Crime & Intelligence Analyst (1)
Economic Development Dept. Assistant (.5)
Public Disclosure Request Assistant II (.5)
Prosecuting Attorney (1)
Legal Assistant (.5)
$407,000
$650,000
$873,000
$195,000
$400,000
$600,000
$400,000
$830,000
$260,000
$300,000
CITY COUNCIL STRATEGIC PRIORITIES
Public Safety Investments
■ Expand Police Force Presence on Federal /Sate Crime Task Force — (Two (2) new officers - $175,000)
■ Fire Service Ladder Truck and Engine Equipment Replacement funded through the State's LOCAL
Lease Program ($1.8 million Annual debt service of $205,000 starting in 2016 for 10 years)
■ Invest in Police Firearms Training in partnership with Yakima County ($150,000)
■ Indigent Defense ($400,000)
■ Add City Prosecutor and 1/z Legal Assistant ($155,000)
■ Parking Enforcement Technology. ($30,000)
■ New Communications/ Dispatch Facility
($970,000 initial investment, $300,000 annual debt service and 0 & M, payable to Yakima County)
■ Add Police Public Information Officer ($64,000)
■ Create Four (4) New Promotional Police Corporal Positions ($25,000)
■ Transitioning Emergency Preparedness from County ($135,000)
- Full year financing for joint Gang Free Initiative/Emergency Preparedness Manager ($83,000)
- Add 1/z time Emergency Preparedness Program Assistant position ($52,000 net)
CITY COUNCIL STRATEGIC PRIORITIES
Economic Development Investments
■ Downtown Plaza Not currently in 2015 budget— will be added when scope is determined.
■ New Downtown Special Events ($102,000 — off set by 100% revenue)
■ Airport Marketing with Federal Match Grant ($250,000 / $125,000 grant revenue)
■ Cascade Mill Site ($3,500,000 / $1,900,000 funded via LIFT & County SIED Program — 2015)
■ SunDome Investment ($/00,000)
■ Relocate Visitors Information Center to Downtown ($130,000)
■ Capitol Theatre Improvement ($50,000)
■ Add Economic Development Assistant ($66,000)
■ Yakima Wine and Craft Beer Strategic Marketing and Branding ($50, 000)
CITY COUNCIL STRATEGIC PRIORITIES
Built Environment Investments
■ Southeast Community Center Improvement ($100,000)
■ Airport Taxiway / Airfield Lighting Improvements ($12,500,000)
■ Martin Luther King Jr. Railroad Grade Separation Sidewalk ($250,000 — & artwork
$350,000 - 2015)
■ North 1st Street Improvements ($1,300,000 — 2015: $5,700,000 — 2016)
■ Stormwater System Improvement ($2,000,000)
- North 1St Street - Randall Park - Mill Site
■ 2017 Comprehensive Plan Consultant ($45,000 — 2015 & $60,000 - 2016)
■ 2017 Comprehensive Transportation Element Consultant ($45,000 — 2015 & $60,000 -
2016)
■ Randall Park Improvement ($900,000)
■ Wastewater Capital Investments ($4,700,000)
■ - Speedway / Race Street piping - Digester Improvement Plan - Castlevale / Fechter piping
■ Water Capital Investment ($2,500,000)
■ - Modifications to river at treatment plant intake - Water main replacement — North 1st Street
■ Irrigation Capital Investment ($1,250,000)
■ - West Yakima System Improvements
■ Replace 3 Transit Buses ($1,300,000)
■ Replace both 60 year old elevators at City Hall ($345,000)
CITY COUNCIL STRATEGIC PRIORITIES
Partnership Development Investments
■ Capitol Theatre Management Fee (add $50,000: Total Budget $282,000)
■ Contract with Union Gap to provide full Fire Suppression and
Prevention Service. ($1.2 million) (not in Preliminary Budget — will be
added to final)
■ Convention Center Management Fee (Additional $13,000 — 2015: Total
Budget $721,200)
■ Washington Fruit Community Center Improvements ($100,000 — 2015:
50% Community Contribution)
■ New Vision ($33,000 — 2015)
■ Visitors Information Center ($60,000 - 2015)
■ Sports Commission (additional $2,000 — 2015 Total Budget $59,000)
CITY COUNCIL STRATEGIC PRIORITIES
Public Trust & Accountability
■ Capital Improvements ($39.0 million - 2015)
■ Quality Customer Service and Leadership Training ($100,000 — 2015)
■ Annual Citizen Survey ($35,000 - 2015)
■ Annual Employee Survey ($13,000 - 2015)
■ Purchasing Procurement System ($26,000 — 50% reimbursed by the County)
2015 TOP 10 CAPITAL PROJECTS
Description
Airport Taxiway Improvements
Yakima Rev Development Area (LIFT)
Fire Apparatus - Ladder Truck & Engine
Wastewater Speedway/Race St Piping
Stormwater - N. 1st Street Improvements
Water - Domestic Main N. 1st Street
N. 1st Street Revitalization
Replace Three Busses
Water Treatment Plant - Mo dific a tions to Rive
Arterial Streets - 64th and Tie ton Signal
2015
Proposed
Expenditures
$12,500,000
3,500,000
1,854,000
1,800,000
1,790,000
1,400,000
1,300,000
1,300,000
1,000,000
943,600
$27,387,600
Funding Source
Grant/Match
State/Match/County SIED Program
State LOCAL Capital Lease
Capital Rates/Reserves
Capital Rates/Reserves
Capital Rates/Reserves
Balance from Underpass Project
Transit Sales Tax
Capital Rates/Reserves
State Grants/Gas Tax
FY 2015 BUDGET SUMMARY
➢ Balanced budget
➢ Focus on core services and Strategic Priorities
➢ Infrastructure investments of $40 million for North 1St Street, Airport,
Utilities, Fire Suppression Equipment, Transit Buses, and Public Works
Equipment.
➢ No service reductions
➢ Property Tax decrease: Combined General Operating and Debt Service Tax
Levy of 0.5%
➢ Small Refuse fee increase of 98(t to $2 per month
THREE-YEAR BUDGET COMPARISON - 2015 BUDGET BY CITY FUNCTIONAL GROUPING
2013
Actual
Expenditures
General Government
City Management $366,983
Indigent Defense 541,656
City Council 286,511
City Clerk/Records 437,577
Human Resources 442,846
Legal 1,247,205
Municipal Court 1,330,831
Planning 517,298
Code Administration 1,381,740
City Hall Maintenance 360,378
Economic Development 503,185
Police 25,830,291
Fire 9,709,330
Gang Free Initiative -
Emergency Preparedness -
Information Systems 2,298,015
Intergovernmental 260,749
Transfers 3,019,305
Nonrecurring Expenses -
Financial Services 1,461,274
State Examiner 103,729
Police Pension 1,344,773
Utility Services 1,405,941
Purchasing 549,153
Engineering 654,156
Total General Fund $54,052,924
Parks & Recreation 4,261,347
Street & Traffic Operations 5,225,208
Total General Government Funds $63,539,479
erp 10/24/2014 3:34 PM 06.2015 ES Exhibit I.xlsx
2014 2014
Amended Year -End
Budget Estimate
2015 2015 2015 2015 2015 2015
Proposed vs 2014 Projected Use of Beginning Est. Ending
Expenditures Estimate Revenue Reserves Fund Balance Fund Balance
$372,684 $370,196
650,500 650,500
290,199 291,163
583,921 583,485
513,151 559,444
1,359,323 1,370,353
1,344,118 1,333,646
497,481 476,414
2,639,371 2,649,654
422,885 399,221
511,733 449,242
26,278,167 25,915,548
10,387,649 10,312,002
333,105 330,972
9,500
3,047,612 2,953,110
244,031 244,031
4,942,275 4,442,275
(950,000) -
1,488,836 1,514,908
110,000 110,000
1,343,325 1,174,237
1,465,199 1,421,634
549,369 559,132
1,109,632 845,776
$59,534,570 $58,966,443
4,556,548 4,545,867
4,821,409 4,814,188
$383,893 3.7%
1,000,500 53.8%
286,735 (1.5%)
593,216 1.7%
664,003 , 18.7%
1,516,206 10.6%
1,370,533 2.8%
581,384 22.0%
1,683,102 (36.5%)
524,298 31.3%
677,329 50.8%
26,687,333 3.0%
10,680,888 3.6%
230,820 (30.3%)
212,246 n/a
2,893,070 (2.0%)
174,989 (28.3%)
5,543,875 24.8%
(1,025,000) n/a
1,601,125 5.7%
110,000 0.0%
1,219,900 3.9%
1,582,844 11.3%
654,699 17.1%
890,530 5.3%
$60,738,516 3.0% 61,061,259 322,742 8,374,076 8,696,818
4,713,152 3.7% 4,709,455 (3,697) 556,239 552,542
5,049,379 4.9% 4,718,610 (330,769) 997,502 666,733
$68,912,527 $68,326,497
$70,501,047 3.2% 70,489,324 (11,724) 9,927,817 9,916,093
2013
Actual
Expenditures
2014 2014
Amended Year -End
Budget Estimate
Other Operating/Enterprise
Economic Development $279,489
Community Development 1,856,349
Community Relations 912,037
Cemetery 236,530
Emergency Services 1,173,571
Public Safety Communications 3,256,565
Police Grants 837,871
Downtown Improvement District 257,863
Trolley (Yakima Interurban Lines) 15,921
Front St Business Impr Area 6,368
Tourist Promotion (Cony Ctr) 1,428,327
Capitol Theatre 347,771
PFD Revenue -Convention Center 682,472
Tourist Promotion Area 643,696
PFD Revenue -Capitol Theatre 516,772
Airport Operating Fund 754,569
Stormwater Operating 2,063,834
Transit 7,717,943
Refuse 5,656,791
Wastewater Operating 19,461,184
Water Operating 8,539,064
Irrigation Operating 1,498,594
Equipment Rental 5,930,216
Environmental Fund 48,077
Public Works Administration 1,106,896
Total Other Operating/Enterprise $65,228,773
erp 10/24/2014 3:34 PM 06.2015 ES Exhibit I.xlsx
$456,622 $456,622
3,120,096 3,109,287
601,850 589,455
278,900 269,920
1,339,282 1,309,446
3,219,521 2,943,359
469,024 435,624
244,358 232,750
166,850 116,501
9,000 5,000
1,483,667 1,483,667
342,020 342,020
645,000 640,000
687,000 650,000
531,000 563,430
1,130,293 1,083,863
2,325,519 2,315,822
8,240,033 7,989,823
5,864,823 5,846,975
20,363,432 20,282,066
9,022,649 8,909,509
2,063,884 1,828,565
5,671,800 5,330,898
192,950 192,681
1,243,866 1,227,371
2015 2015 2015 2015 2015 2015
Preliminary vs 2014 Projected Use of Beginning Est. Ending
Budget Estimate Revenue Reserves Fund Balance Fund Balance
$235,766 (48.4%) $222,000 ($13,767) $54,866 $41,099
1,479,188 (52.4%) 1,474,337 (4,851) 685,166 680,315
612,510 3.9% 596,600 (15,911) 547,378 531,467
292,795 8.5% 264,950 (27,845) 49,291 21,446
1,312,692 0.2% 1,290,026 (22,666) 183,768 161,102
4,438,988 50.8% 4,095,799 (343,189) 754,237 411,048
475,296 9.1% 484,000 8,704 307,019 315,723
197,500 (15.1%) 197,840 340 5,270 5,610
57,046 (51.0%) 53,624 (3,422) 26,104 22,682
7,000 40.0% 3,735 (3,265) 4,410 1,145
1,628,854 9.8% 1,693,250 64,396 544,155 608,551
396,540 15.9% 395,250 (1,290) 26,387 25,097
748,220 1 16.9% 816,750 68,530 407,215 475,745
687,000 1 5.7% 687,000 - 73,324 73,324
608,220 7.9% 618,700 10,480 135,692 146,172
1,099,571 n/a 1,108,889 9,319 1,879 11,198
3,441,953 48.8% 2,151,000 (1,293,953) 1,299,362 5,409
8,581,402 7.4% 8,519,226 (62,176) 1,280,164 1,217,988
6,114,871 4.6% 6,220,599 105,728 287,550 393,278
20,893,684 3.0% 21,431,302 537,619 2,997,144 3,534,763
9,359,410 5.0% 8,876,000 (483,410) 2,865,962 2,382,552
1,791,819 (2.0%) 1,766,200 (25,619) 876,723 851,104
5,411,876 1.5% 5,612,858 200,982 4,413,523 4,614,505
1,007,950 423.1% 1,010,000 2,050 481,551 483,601
1,160,784 (5.4%) 1,115,438 (45,346) 402,827 357,481
$69,713,439 $68,154,653 $72,043,937 5.7% $70,705,373 ($1,338,562) $18,710,967 $17,372,405
Capital Improvement
Arterial Street
C.B.D. Capital Improvement
Capitol Theatre Construction
Yakima Rev Development Area
Parks & Recreation Capital
Fire Capital
Law & Justice Capital
Public Works Trust Construction
REET 2 Capital Construction
Street Capital Fund
Convention Center Capital Impr
Cum. Reserve for Capital Impr
Airport Capital
Stormwater Capital
Transit Capital Reserve
Wastewater Facilities Capital Rsv
Wastewater Construction
Water Capital
Wastewater Capital
Irrigation Capital
Total Capital Improvement
Contingency/Operating Reserves
FRS/Capitol Theatre Reserve
Risk Management
Total Contingency/Operating Rsys
erp 10/24/2014 3:34 PM 06.2015 ES Exhibit I.xlsx
2013
Actual
Expenditures
2014 2014
Amended Year -End
Budget Estimate
$6,307,833
220,508
749,007
99,949
692,044
4,944,007
824,324
506,822
(75)
173,671
8,928,559
299,599
160,812
62,755
10,711
3,290,740
6,588,042
9,666,631
796,777
$44,322,717
$71,927
3,706,744
$5,106,566 $3,799,078
131,000 106,152
140,000 140,000
2,473,235 835,000
100,000 100,000
882,808 882,808
884,796 913,159
732,773 719,010
772,787 772,787
16,500,000 17,535,000
402,311 426,846
4,948,000 6,518,836
11,162,885 1,306,399
790,000 790,000
1,989,000 1,996,000
400,000 400,000
4,793,813 1,887,000
5,525,019 4,620,000
9,663,679 3,754,000
1,621,504 1,060,129
2015 2015 2015 2015 2015 2015
Preliminary vs 2014 Projected Use of Beginning Est. Ending
Budget Estimate Revenue Reserves Fund Balance Fund Balance
$1,881,134 (50.5%) $1,822,913 ($58,221) $1,222,902 $1,164,681
91,000 (14.3%) 26,220 (64,780) 123,332 58,552
50,000 n/a 71,927 21,927 4,473 26,400
3,500,000 319.2% 1,900,000 (1,600,000) 2,793,687 1,193,687
1,000,000 900.0% 950,000 (50,000) 239,590 189,590
2,254,159 155.3% 1,963,500 (290,659) 375,181 84,522
639,636 (30.0%) 554,886 (84,750) 610,528 525,778
1,028,084 43.0% 836,449 (191,635) 592,513 400,878
772,787 0.0% 752,000 (20,787) 514,273 493,486
n/a 20,811 20,811 38,171 58,982
490,000 14.8% 210,500 (279,500) 465,050 185,550
2,245,000 (65.6%) 50,000 (2,195,000) 2,285,306 90,306
12,539,721 859.9% 12,776,500 236,779 537,821 774,600
2,025,000 156.3% 940,000 (1,085,000) 1,244,734 159,734
1,749,000 (12.4%) 1,868,507 119,507 2,264,727 2,384,234
600,000 50.0% 600,000 1,147,941 1,147,941
3,280,000 73.8% 500,000 (2,780,000) 4,189,960 1,409,960
2,500,000 (45.9%) 750,000 (1,750,000) 3,496,315 1,746,315
810,000 (78.4%) 4,681,500 3,871,500 (3,156,070) 715,430
1,567,742 47.9% 1,430,060 (137,682) 984,263 846,581
$69,020,176 $48,562,205
$71,927 $71,927
3,299,649 3,571,925
$3,778,671 $3,371,576 $3,643,852
$39,023,263 (19.6%) $32,705,773 ($6,317,490) $19,974,697 $13,657,207
$71,927 0.0% $0 ($71,927) $108,568 $36,641
3,643,761 2.0% 3,684,000 40,239 634,139 674,378
$3,715,688 2.0% $3,684,000 ($31,688) $742,707 $711,019
2013
Actual
Expenditures
Employee Benefit Reserves
Unemployment Compensation $155,204
Employees Health Benefit 9,945,429
Workers' Compensation 1,131,336
Wellness/EAP Fund 117,595
Firemen's Relief & Pension 1,229,569
Total Employee Benefit Reserves $12,579,133
Trust and Agency Funds
Cemetery Trust
YakCorps Agency Fund
Total Trust and Agency Funds
Debt Service
L_LD. Guaranty
PFD Debt Service
General Obligation Bonds
L.I.D. Debt Service
Water-Irrigation/Sewer Bonds
Total Debt Service
$6,300
587,004
$593,304
$35,000
1,017,000
2,419,857
196,032
2,127,560
$5,795,449
Total City Budget $195,837,526
erp 10/24/2014 3:34 PM 06.2015 ES Exhibit I.xlsx
2014 2014 2015 2015 2015 2015 2015 2015
Amended Year -End Preliminary vs 2014 Projected Use of Beginning Est. Ending
Budget Estimate Budget Estimate Revenue Reserves Fund Balance Fund Balance
$286,582 $192,308 $323,177
9,867,703 10,206,343 9,745,849
1,258,630 1,302,286 1,241,131
176,300 176,300 174,800
1,259,308 1,250,483 1,380,282
$12,848,524 $13,127,720 $12,865,238
$12,000 $12,000
610,671 610,671
$622,671 $622,671
1,015,650 1,015,650
3,708,199 2,085,429
245,000 245,000
2,144,786 2,144,786
$7,113,635 $5,490,865
$231,602,548 $207,928,463
68.1% $197,000 ($126,177) $396,415 $270,238
(4.5%) 9,823,850 78,001 2,483,372 2,561,373
(4.7%) 1,033,000 (208,131) 820,971 612,840
(0.9%) 175,000 200 178,629 178,829
10.4% 1,280,838 (99,444) 949,965 850,521
(2.0%) $12,509,688 ($355,551) $4,829,352 $4,473,801
$12,000 0.0% $14,500 $2,500 $625,396 $627,896
605,777 (0.8%) 605,777 333,270 333,270
$617,777 (0.8%) $620,277 $2,500 $958,666 $961,166
- n/a $50 $50 $25,264 $25,314
1,026,050 1.0% 1,016,422 (9,628) 160,216 150,588
3,438,379 64.9% 3,438,939 560 77,196 77,756
245,000 0.0% 245,000 - 78,138 78,138
2,132,155 (0.6%) 2,134,280 2,125 1,762,214 1,764,339
$6,841,584 24.6% $6,834,691 ($6,893) $2,103,028 $2,096,135
$205,608,534 (1.1%) $197,549,126 ($8,059,408) $57,247,234 $49,187,826