HomeMy WebLinkAbout11/18/2014 10 2015 Revenue and Expenditure Budget Proposal; First Public HearingBUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No. 10.
For Meeting of: November 18, 2014
IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII
ITEM TITLE: First Public Hearing on the proposed 2015 Revenue and
Expenditure Budget for the City of Yakima
SUBMITTED BY: Tony O'Rourke, City Manager
Cindy Epperson, Director of Finance & Budget
SUMMARY EXPLANATION:
City management is submitting the 2015 Preliminary Budget Summary and the related initiatives
to City Council and the public. This budget represents staff's projections of revenues and
proposed expenditures for the coming year.
The Preliminary Budget was first presented at a Study Session on October 28, 2014.
The purpose of the Public Hearing is to accept input, comments and/or questions from citizens
and other affected parties regarding the proposed 2015 Budget including all initiatives and other
related budget matters for 2015. The 2015 Preliminary Budget Summary is on the City's website
home page - vyakimawaegov.
In accordance with state law, Council is required to conduct two public hearings and adopt the
budget prior to year end. The second and final public hearing will be conducted on December 2,
2014, and the final budget ordinance will be presented for Council approval either on December
2 following the public hearing or on December 9.
Resolution:
Other (Specify): Public Hearing
Contract: Contract Term:
Start Date: End Date:
Amount:
Ordinance:
Item Budgeted:
Funding Source/Fiscal
Impact:
Strategic Priority:
Insurance Required? No
Public Trust and Accountability
Mail to:
Phone:
APPROVED FOR
SUBMITTAL:
RECOMMENDATION:
Conduct the Public Hearing and accept public testimony.
ATTACHMENTS:
Description
budget
Upload Date
11/14/2014
City Manager
Type
Backup IMledeiriiell
2015
Preliminary Budget
CITY OF
Summary Tao,
'
,//
,
/ /
A//z ,i,,/ //
'
Washington
//////// '/
(
/
July 231
//
// /// /
/
her King J
/„„///„„„„
/,//,
it
derpass 7ening
CITY OF (MO/1W
2015 PRELIMINARY BUDGET SUMMARY
TABLE OF CONTENTS
SECTIONS
INTRODUCTION
➢ Transmittal
➢ Budget Summary
GENERAL GOVERNMENT FUNDS
➢ Year in Review
➢ Revenue Trends
➢ Expenditure Trends
OTHER FUNDS
STRATEGIC INITIATIVES
EXHIBITS
➢ Three -Year Budget Comparison
➢ What You Pay and What You Get
➢ Supplemental Information
CRY OF (Yakima
2015 PRELIMINARY BUDGET SUMMARY
Equipment Rental
$6,419,826
3.1°0
Insurance & Risk
$11,484,956
5.6%
Police, Courts, Fire
Water & Irrigation $48 008 978
$15,218,971 23.340
7.4%
WastewaterIII
$25,583,684 City Administration
12.4% $8,974,604
Stonnwater
4.4%
ec
Refuse Comm & Th & Other
$6,114,871
A47
Svcs
r*: - * ' other operati:g.1:: ds
52:0,471,662
Streets &
3.040
Transit
$10,330,402
\ Engineering
2J%
Airport
$13,639,292 Capital Debt Service
6.6% Improvement $6,841,584
$13,951,800 3.3%
6.8%
$5,939,909
Community 29%
Development
$1,714,955 Parks&
0-84 Recreation
$4,713,152
23%
($70.5 Million General Government)
$205.6 MILLION
Preface -1
2 —Preface
CITY OF - L aOma
STRATEGIC PRIORITIES
Economic Development
Public Safety
Improve the Built Environment
Public Trust and Accountability
Partnership Development
Adopted 2012
Preface— 3
4—Preface
INTRODUCTION: TRANSMITTAL
TO:
FROM:
DATE:
SUBJECT:
OFFICE OF THE CITY MANAGER
129 North Second Street
City Hall, Yakima, Washington 98901
Phone (509) 575-6040
MEMORANDUM
Honorable Mayor and Members of the Yakima City Council
Tony O'Rourke, City Manager
November 14, 2014
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 or fee increases
to further burden businesses and residents. 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, water and refuse rate increases until
2016. The utility system capital improvements necessitating the stormwater, wastewater, water and
refuse rate increases can be financed by excess operating and capital reserves in 2015. The need for a
refuse fee increase to offset a projected $350,000 operating shortfall will be offset by eliminating the
leaf bag program, cart replacement postponement, and the use of refuse fund operation reserves. All
these deferred rate increases will be reflected and adjusted for in the final 2015 budget adoption
scheduled for December 9, 2014.
Introduction • Section I —1
This budget is driven by the results of the last three annual citizen surveys that expressed a strong
need to address the City's public safety challenges, economic development needs, deferred
infrastructure backlog, and community appearance. These expressed community priorities align
perfectly with the City Council's 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.
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 18, 2014. If the City Council adopts the agreement,
we will reflect these revenues and expenses in the final 2015 budget scheduled for a public hearing and
final adoption on December 9, 2014. The budget does reflect the funds to comply with the public's
strong approval, on November 4, 2014, to dedicate $750,000 annually for parks and recreation capital
infrastructure or rehabilitation. On November 10, 2014, the City Council designated the $750,000 be
utilized for debt service payments on a new aquatic facility in partnership with the YMCA and a new
soccer complex in partnership with a private soccer foundation. In addition, the budget also includes the
financial resources to initiate the City Council commitment to the construction of a downtown plaza.
Initial funding could support plaza engineering and construction in 2015 by securing the final $5 million
in private pledges to build this $14 million public-private venture.
CITY BUDGET
The proposed FY 2015 City budget, including all funds, is balanced. The FY 2015 expenditure
budget is $205,608,534 and represents a $2.3 million (1.1%) decrease over 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 (24%) of the 2015 budget expenditures compared to 21% reserves in
FY 2014. The following charts highlight expenditures and changes in the 2014 projected year-end
budget and proposed 2015 budget.
2014 VS. 2015
REVENUE BUDGET COMPARISON
2014 2015 14 vs. 15
Year -End Projected Budget
Fund Estimate Revenue % Change
General $58,211,636 $61,061,259 4.9%
Parks and Recreation 4,519,614 4,709,455 4.2%
Street & Traffic Operations 4,639,310 4,718,610 1.7%
General Government Subtotal 67,370,560 70,489,324 4.6%
Utilities/Other Operating 69,452,999 70,705,373 1.8%
Capital Improve me nt 45,047,419 32,705,773 (27.4%)
Risk Manage me nt Re se rve s 3,367,000 3,684,000 9.4%
Employee Benefit Reserves 12,071,536 12,509,688 3.6%
G.O. Bond Debt Service 3,187,741 4,700,411 47.5%
Utility Revenue Bond Debt Service 2,146,286 2,134,280 (0.6%)
Trust and Agency Funds 625,171 620,277 (0.8%)
T otal $203,268,712 $197,549,126 (2.8%)
2 — Section I • Introduction
2014 VS. 2015
EXPENDITURE BUDGET COMPARISON
2014 2015 14 vs. 15
Year -End Proposed Budget
Fund Estimate Expenditures % Change
General Fund $58,966,443 $60,738,516 3.0%
Parks 4,545,867 4,713,152 3.7%
Streets & Traffic 4,814,188 5,049,379 4.9%
General Government Total 68,326,497 70,501,047 3.2%
Utilities/Other Operating 68,154,653 72,043,937 5.7%
Capital Improvement 48,562,205 39,023,263 (19.6%)
Risk Management Reserves 3,643,852 3,715,688 2.0%
Employee Benefit Reserves 13,127,720 12,865,238 (2.0%)
G.O. Bond Debt Service 3,346,079 4,709,429 40.7%
Utility Revenue Bond Debt Service 2,144,786 2,132,155 (0.6%)
Trust and Agency Funds 622,671 617,777 (0.8%)
Total - Citywide Budget $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 (3.2%) increase over the 2014
year-end projected expenditure budget. The revenue budget is a $70,489,324 (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
Introduction • Section I - 3
BALANCING STRATEGY
We have balanced the 2015 General Government Fund budget using the following strategies:
➢ Instituting a 2% vacancy rate - Savings: $1,025,000.
Personnel costs are budgeted at 98% to account for a minimum 2% position turnover/vacancy
➢ 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 projected "premiums" with a 10% increase for
employees and a 48% increase for dependents resulting in a projected $2,000,000 increase to
the Plan, of which employees would absorb 20% or $400,000 and the City would absorb $1.6
million. 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 (2.0)
o Police Recruiter (0.5)
o Police Public Information Officer (1.0)
o Police Applications Specialist (1.0)
o Training Program Coordinator (1.0)
o Emergency Management Specialist (0.5)
o Crime & Intelligence Analyst (1.0)
o Economic Development Dept. Assistant (1.0)
o Public Disclosure Request Assistant (0.5)
o Prosecuting Attorney (1.0)
o Legal Assistant (0.5)
➢ Proposed PERS 2 mandated pension rate contribution increase $260,000
from 9.2% to 11.2% as of July 1, 2015
➢ Dispatch center relocation $300,000
PUBLIC SAFETY INVESTMENTS
The core obligation of government is to provide a safe and secure environment for its residents,
businesses, and visitors. Despite a 60% reduction in crime per capita since 1988 (and a 20%
reduction in 2013), concern over random acts of gang violence, property crime, and auto theft
continue to generate significant community angst about public safety in Yakima. Respondents to the
2014 Yakima Citizen Survey identified public safety and economic development as the top priorities
for Yakima in the coming year. Based on the latest survey results, only 29% of residents rated their
overall feeling of safety as good or excellent versus 23% in 2013. Additionally, 25% indicted a
household member had been a victim of a crime in the past 12 months versus 29% in 2013.
4 - Section I • Introduction
To ensure a safe and secure environment, the City will continue placing a premium on crime
prevention and suppression, fire and life safety, gang free initiatives, and an enhanced level of
public safety services for Yakima.
Add Two Police Officers to Federal Task Forces $175,000
The Yakima Police Department is working to optimize its resources and increase its effectiveness by
expanding its presence on federal task forces. These task forces allow the department to leverage the
resources of the federal agencies and allows for federal prosecution of violent offenders, particularly
related to gangs, drugs, and guns. In order to maximize the benefit of the partnerships, the Police
Department is proposing the addition of two (2) police officer positions to be department liaisons to
the Alcohol, Tobacco, and Firearms (ATF) and Homeland Security federal task forces.
Upgrade Four Police Officer Positions to Corporal $25,000
The Yakima Police Department has implemented a career development and succession plan over the
past year. The creation of a corporal position adds a level of leadership between the police officer
and police sergeant ranks. This would reorganize the patrol division, potentially reducing overtime
by having a corporal assigned to each patrol squad. The corporal would be available to assume
supervisory duties in the absence of the sergeant, rather than hiring another sergeant on overtime to
cover the shift. Most importantly, these new promotional opportunities will provide a recognition
and incentive to our best police officers to stay on the front line of the City's crime suppression
operation.
Add Part Time Human Resources Assistant for Police Recruitment $45,000
The Yakima Police Department and Yakima Fire Department require the dedicated assistance of a
part-time human resources assistant to oversee the advertising, recruiting, facilitating and
monitoring of the hiring processes of both commissioned and non-commissioned personnel. This
includes police officers, corrections officers, support personnel, firefighters, and communications
personnel. These positions require regular testing and eligibility lists and need immediate attention
in order for the best candidates to be considered. This initiative would improve public safety
staffing by expediting vacancy replacements.
Add One Police Public Information Officer $64,000
The Yakima Police Department proposes a reorganization that removes the Public Information
Officer (PIO) duties from a command level officer and instead assigns those duties to a dedicated
civilian position. A dedicated PIO will allow the department to be more proactive in garnering the
public's assistance and support through positive and effective information dissemination.
Yakima County Firing Range Partnership $150,000
The Yakima Police Department (YPD) proposes to work cooperatively with Yakima County to share
a firing range facility. Yakima County has recently opened a new, state of the art firing range facility
in the East Valley area. Currently, YPD contracts with a private provider and the U.S. Army for
range space, which can make it challenging to find openings in their range schedules to
accommodate YPD personnel. This partnership would provide a state-of-the-art firing range for
YPD and ensure the highest quality firearms training at a significant savings over building a
separate range.
Introduction • Section I - 5
Replace Jail Control Panel $165,000
The jail control panel controls all doors, speakers, and access points in the City jail. The current
panel is almost 20 years old. The manufacturer is no longer in business and replacement parts are
not available. The current system frequently breaks down and must be repaired by City staff. A
new panel would interface with the jail video system and would modernize the jail operation and
ensure a safe environment for both corrections officers and inmates.
Live Scan Fingerprinting System $7,000
Washington State Patrol has advised all agencies responsible for processing concealed pistol license
(CPLs) that consideration is being given to making it mandatory for fingerprints to be submitted
electronically rather than on ink cards. The Police Services Division processes 2,000+ fingerprint
cards on an annual basis. Currently, the department does not have the equipment needed to
provide electronic fingerprinting services. The Live Scan system requires an initial 10% or $7,000
match ($70,000 system) for the purchase of the equipment, staff training, etc. as well as ongoing
maintenance and service fees.
Radio Replacement Program $15,000
There has not been a scheduled radio replacement system in place for portable radios. The
department proposes to implement a 10 -year radio replacement cycle to replace the oldest and most
obsolete radio units. Ten percent of the total department -issued radios would be replaced each year.
The exact number of radios needed may vary from year to year due to changes in staffing levels.
Complete SWAT Communications Center Upgrade $31,000
Several members of the SWAT team have suffered hearing loss due to inadequate hearing/head
protection. In 2014, the department upgraded the SWAT radios utilizing an emergency
management grant. This proposal would finish the integration of the communication, hearing, and
head protection systems.
Communications Center Relocation $970,000 / $243,000
The Public Safety Communications Division's mission is to provide 9-1-1 call answering for the
citizens of Yakima County and provide public safety dispatching for the City of Yakima and 14 other
public safety agencies. The City Council recognized the need for a new public safety
communications center and the need for additional space to accommodate the Yakima Police
Department and, therefore, entered into an agreement with Yakima County to move the
communications center from the Law & Justice Center to the County Resources Center.
The cost of the center will be shared equally by Yakima County and the City of Yakima. Within this
budget are specific City, County, and shared capital and non -capital costs which also will be shared
equally between the City and County. The anticipated annual bond repayment for the City of
Yakima is budgeted to be $211,000. The annual cost for maintenance and lease of the building will
be $64,000, for a total net cost of $275,000 annually. In addition to relocating the 9-1-1 systems, the
City must relocate the public safety communications equipment, which is estimated to cost $975,000
and be funded through an intergovernmental loan.
6 — Section I • Introduction
Fire Ladder Truck $1,150,000
The older of the City's two ladder trucks, a 102' LTI aerial platform, is a 1995 model year. With its
elevated water stream, this apparatus has been crucial in controlling the spread of countless fires in
the city and county with mutual aid calls. At 20 years of age, the lifespan of this apparatus is coming
to a close. Although it has served the community well, the 1995 ladder truck has reached the end of
its useful life.
Taking into account specification writing and construction time on such a significant venture, it will
take approximately 24 months from the beginning of this project until delivery and in-service time.
This would be a replacement, and does not constitute a net increase of apparatus.
Fire Engine $450,000
Consistent with a Council -approved apparatus replacement strategy, this new fire engine would be
placed in front-line service to replace a 2003 model that would go into reserve service and remove a
1991 engine that has been on reserve status. Taking into account specification writing and
construction time, it will take approximately 18 months from the beginning of this project until
delivery and in-service time.
Rehab/Breathing Air Resource Unit $75,000
The most recent update of the Washington Administrative Code (WAC) includes significant changes
and requirements in emergency scene firefighter rehabilitation. With the current rehab and air units
each being deployed and operated by a small cadre of our reserves, and because of the lack of
personnel to deploy both units, incident commanders are forced to choose between the most time
sensitive need. The desired combined unit would serve to consolidate two older, smaller, single -
purpose vehicles into one more capable and efficient vehicle.
Indigent Defense Services $550,000
The Washington Supreme Court has imposed a new caseload limit for attorneys providing public
defense services for misdemeanor cases. The new caseload limit is 300 cases per year if based on a
new case weighting system and 400 cases per year if no case weighting system is used. Due to the
City's heavy DUI and domestic violence caseloads, case weighting is not a preferred option.
Accordingly, the criminal caseload of a public defender cannot exceed 400.
To reduce the cost impacts of the Supreme Court decision on indigent defense, the City has
employed a Pre -Filing Diversion Program and a Prosecution Charging Unit. These two initiatives
have reduced our misdemeanor caseload by one-third since 2013. Despite that, the full
implementation of the Washington Supreme Court indigent defense requirement will necessitate
four new defense counsel at a cost of $400,000.
To meet the demands of the additional four defense attorneys, prosecution staffing levels will need
to be increased by one attorney and an assistant at a cost of $150,000. The total cost of indigent
defense services will be $1,000,000 in 2015.
Emergency Preparedness $52,000
The Council voted on August 5, 2014 for the self-determination of the City's Emergency
Preparedness. This became a new area of responsibility and budget for the City of Yakima. The
Introduction • Section I - 7
evolution of Emergency Management in Yakima will require a staff addition (50% Employee) and
external professional services to certify and develop the skill sets of incident response.
ECONOMIC DEVELOPMENT INVESTMENTS
In 2014, Yakima residents identified economic development as one of the two top priorities for the
Yakima community in 2015. Only 26% of the survey respondents believe the current economic
health of the community is positive, only 21% believe the downtown was vibrant and only 33%
rated shopping opportunities as positive. Given the community's desire for more jobs, retail
opportunities, enhanced air service, a vibrant downtown, and economic diversification, the 2015
budget includes the following initiatives to foster a more robust and vital economy.
Cascade Mill Site $3,500,000
The City of Yakima has a number of initiatives related to the Cascade Mill Redevelopment Project in
2015. The FY 2015 budget investment of $3,500,000 for the Cascade Mill Site will be crucial to
converting the former lumber mill and municipal landfill into an economic asset and job creator.
The mill site improvements will be funded by a Local Infrastructure Financing Tool (LIFT) funding
reimbursement from the State of Washington of $1 million annually and a Yakima County SIED
loan/grant is available in the amount of $900,000 if needed. The proposed Cascade Mill Site
initiative in 2015 includes:
➢ In 2015, the City will be working closely with the Department of Ecology (DOE) to prepare
the permitting documents for cleanup of the former municipal landfill and the removal of
wood waste.
➢ In 2015, a funding strategy will be developed in cooperation with DOE for use of Brownfield
and Model Toxic Control Act (MOTCA) grant funds for the cleanup and remediation of the
landfill and the plywood plant sites.
➢ A $2.6 million roundabout is planned at the intersection of Fair Avenue, Lincoln Avenue,
and MLK, Jr. Blvd.
➢ The federally required Interstate 82 interchange modification process will be largely
completed in 2015. The Washington State Department of Transportation is the lead agency
for the interchange project and will be supported by the City and Yakima County.
➢ The City and County have a contract with Lochner & Associates to prepare the engineering
and environmental review of the interchange project, the east -west corridor and the Cascade
Mill Parkway. Other development site issues have also been addressed under this
professional services contract.
Enhance/Expand Downtown Events $102,000
In 2013, the City of Yakima created new special events to activate the downtown district. The events
included Downtown Summer Nights, Lunchtime Live, and Light Up the Plaza. In 2014, the City
introduced the Blues and Local Brews Festival, which took place in the Historic North Front Street
District and Viva La Musica concert series in Miller Park. In 2015, we intend to expand the Viva La
Musica concert series to 12 weeks, expand the Blues and Local Brews Festival to include national
entertainers and introduce three new events. In May, we will roll out a new Country American
music event, in June we will do a children's activity event, and in September we will introduce a
harvest food event. Many of these events include revenue sources (ticketing, beer / wine sales,
sponsorships) to offset the $102,000 cost of the new events.
8 — Section I • Introduction
Hire an Economic Development Department Assistant $66,000
In 2015, the City of Yakima will add a second full time employee to the Economic Development
Department. The Economic Development Assistant will research local economic data, perform all
administrative functions of the economic development department, issue all special event permits
city wide, and lead implementation and partnership efforts for City sponsored special events'
program including Downtown Summer Nights, Lunchtime Live, Yakima Blues and Local Brews,
Country Americana Festival, Windows Alive as well as develop new events and activities. This new
position will free time for the Economic Development Manager to focus attention on retail
recruitment efforts, air service expansion, local business outreach, and other higher impact economic
development endeavors.
SunDome Investment $100,000
The SunDome is a Yakima County, tourism -related facility. The County plans to invest up to
$400,000 for capital facilities, marketing, and upgrades. The City proposes using $75,000 of the
lodging tax and $25,000 in the general fund to generate more SunDome events and tourism dollars
for the Yakima economy.
Airport Marketing $125,000
In September of 2014, the City of Yakima was awarded a two year, $290,000 Small Community Air
Service Development Grant from the Federal Department of Transportation. This grant will be
matched by $290,000 of local funds to assist in the expansion of our local air service opportunities.
In 2015, we will engage in further negotiations with Alaska Airlines to add a fourth flight to their
SeaTac hub and use our local funds to market the additional service. At Alaska's request, we will
also begin discussions on adding a daily flight to Portland. The grant and City matching
contribution are budgeted as follows:
2015 2016 Total
General Fund $250,000 $330,000 $580,000
Federal Grant $125,000 $165,000 $290,000
Net $125,000 $165,000 $290,000
Relocate Visitor Information Center $130,000
The Yakima Valley Visitor Information Center is located on Fair Avenue next to the Gateway Center.
While its location is easily visible to travelers on I-82, it is not easy to find once travelers get onto
Yakima Avenue. In 2013, the Visitor Information Center served nearly 14,000 walk-in visitors. The
building is owned by the City of Yakima. Staff proposes moving the Visitor Information Center to a
City -owned parcel of land on the corner of 9th Street and Yakima Avenue to make it very accessible
to travelers and to make it an easier launching pad to many of the City of Yakima's restaurants,
hotels, and other unique attractions. In this new location, we anticipate a higher usage of the
center's offerings as well as a making it better able to serve as an effective advocate for Yakima -
based attractions.
Wine, Craft Beer, and Cider Marketing/Branding $50,000
Numerous Northwest cities have strengthened their local economies by focusing on the promotion
and branding of their local beverage industries. Bend, Oregon's "Beer Trail", Woodinville,
Washington's "Wine Country", and Walla Walla, Washington's wine industry are huge draws for
travelers and have gained recognition for their communities through numerous articles in
Introduction • Section I - 9
magazines and newspapers. In Yakima, we have seven locally -owned wineries, two local
distilleries, two locally owned breweries with four more in the works, and a nationally -regarded
cider production facility that opened within City limits in late 2014. The critical mass and quality of
our product is significant enough to draw travelers, but we lack a cohesive marketing message,
special event promotional package, and publicity plan to communicate our community offerings to a
larger audience. This project will work directly with Yakima's private sector beverage industry to
create a cohesive strategic marketing and branding initiative.
Update Expansion Feasibility Study $16,000
Built in 1976, the Yakima Convention Center is an important asset for downtown, the City of
Yakima, and Yakima County. Each year the Center attracts and serves around 120,000 people,
resulting in $8 million in direct economic impact. The Center has grown through two expansions
(1996 and 2001) plus the addition of a plaza. The 1996 expansion was funded by Hotel/Motel Tax,
and will be paid in full in 2019. The 2001 addition was funded by the Public Facilities District (PFD)
state sales tax credit and will be paid in full in 2026.
In 2007, GVA Kidder Mathews of Bellevue was commissioned to conduct a feasibility study for an
expansion of the Center, utilizing data from 2007 or earlier. While their report did support a smaller
facility expansion, due to the uncertainty of the economy it was decided not to pursue an expansion
in the near term. As the recession has subsided and the market conditions have changed, the PFD
Board has decided it is time to reassess the potential. GVA Kidder Mathews has informed us that to
update the existing plan would cost $16,000 (the original work cost $26,000). Briefly, the scope of
work would:
➢ Determine and evaluate the Yakima Convention Center Market in comparison to
competitors.
➢ Estimate the market share obtainable by an expanded facility.
➢ Review facility space requirements to ensure they match potential markets.
➢ Identify tradeoff of space versus if facility is not built to match market potential.
➢ Determine potential growth of hotel/motel tax for the next five years.
➢ Project operating revenue for the next five years.
The results of the study will help staff, the PFD, and the City determine if an expansion is feasible
and if so, what options could be pursued.
BUILT ENVIRONMENT
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 component to its
future success. In 2014, citizen survey respondents rated the overall built environment of Yakima as
39% good or excellent. To that end, the following 2015 budget initiatives are proposed.
Airport Taxiway/Airfield Lighting Improvements $12,500,000
The Yakima Air Terminal is an integral part of the City's transportation system and economic
development infrastructure. Through close cooperation with the Federal Aviation Administration, the
Airport recently received two grants totaling $10 million, which were matched by $1.1 million in airport
passenger fees to rehabilitate the airport's primary taxiway and associated taxiway connectors. In
addition to the two grants, the airport will utilize its passenger facility charges to fund the remaining
10 — Section I • Introduction
balance of the project. This project will replace aging asphalt, taxiway lights, taxiway signs, and airfield
markings to ensure the airport will continually meet Federal Aviation regulations while meeting future
aviation demands. These projects are being carried forward from 2014.
North 1st Street Improvements $1,300,000
The engineering design of the revitalization of North 1St Street from Martin Luther King, Jr.
Boulevard (MLK) to 'N' Street will be completed in 2015 and the relocation of the overhead utilities
will begin in 2015. The revitalization will consist of installing and upgrading the streets, sidewalks,
medians, and landscaping of this section of North 1St Street to improve safety and attract
development. The overhead utilities will be relocated to adjacent streets and alleys. In addition, to
accomplish a complete "street" upgrade, $3.2 million in water and stormwater projects are
scheduled for North 1St Street in 2015.
21st Avenue Road Improvements $175,000
The Yakima Air Terminal is an integral part of the City's transportation system and economic
development infrastructure. The airport continues to see growth in a variety of areas to include
passengers utilizing airline service, cargo operations, and the need for additional hangar
development. As outlined in the Draft Airport Master Plan, it is recommended the South Air Park
area located at 21st Avenue and Ahtanum Road continue to be focal points for further corporate and
general aviation expansion. In order to facilitate additional hangars, the airport administration in
conjunction with airport stakeholders, has met to discuss infrastructure improvements to meet the
airport's aviation demands.
Randall Park Improvements $900,000
Randall Park is over 40 years old and is in need of renovation. In 2010, the two wooden bridges that
led to the nature area of the park were removed due to poor condition. In September of 2013, a
$50,000 anonymous donation was made for improvements to Randall Park. A citizens committee
was formed and renovation needs were identified. In December of 2013, another anonymous
donation was made for $100,000. This donation came with a challenge to the community to match
the funds. Donations continue to be received for the project. In August 2014, a proposal was
submitted to the Recreation and Conservation Office (RCO) for the State of Washington for a grant
of $500,000 for the park. The proposal ranked 8th among 70 applications and it is very probable the
project will receive the $500,000. Some of the components of the renovation are: new parking lots,
new restroom (with the possibility of an additional restroom on the 48th Avenue side of the park),
new asphalt walkways, new entrance signs, new duck pond observation deck, new playground and
new picnic shelter.
Lincoln Underpass Sidewalk & Artwork $600,000
Construct an elevated sidewalk on Lincoln Ave to improve pedestrian safety. The elevated sidewalk
was not included in the original Lincoln Underpass contract because staff originally planned to use
Lincoln as a 2 -way detour route during the construction of the Martin Luther King Jr. underpass and
needed all available width to accomplish the detour. ($250,000)
Construct the "Bins of Light" public art project on the Lincoln grade separation. The "Bins of Light"
is envisioned to celebrate Yakima's fruit industry heritage with images of fruit labels and fruit bins
lit by both natural and artificial light sources. ($350,000)
Introduction • Section I -11
City Hall Improvements $440,000
Yakima City Hall was built in 1949 and has had few upgrades made to the building over the past six
decades. In 2014, improvements were made to the first floor of City Hall. It is proposed that in 2015
several customer -focused interior improvements be made to the second floor of City Hall in order to
update both the appearance and functionality, including consideration of ADA access for all the
public areas. Along with the upgrades to the second floor, it is necessary to replace both elevators
which are 65 years old.
Irrigation Improvements $1,250,000
Complete the West Yakima irrigation system refurbishment project which will replace leaking wood
staved, steel, and PVC piping. The first phase of the project is being completed in 2014. This is the
first refurbishment of the system since it was built more than 80 years ago. ($750,000)
The City currently diverts water from the Naches River in two places: one to put water in the
Fruitvale Canal and the other into the general irrigation system. This project consolidates the
diversions into one location at the Nelson Dam. The consolidation decreases maintenance and
operation costs and reduces water loss due to piping the water rather than using open canals.
($500,000)
Water System Improvements $2,500,000
There are old existing 8" and 6" waterlines under the sidewalks on North 1St Street. As part of the
North 1St Street project, these lines will be replaced with one 12" waterline roughly in the center of
the road, per City design standards. ($1,400,000)
As a normal part of the river evolution process, the Naches River has moved away from the City's
water intake structure. This project builds check structure and diversions to redirect the river back
to the intake structure and stabilize the river's path. It also provides improved fish habitat.
($1,000,000)
Wastewater Improvements $4,690,000
These improvements include a number of smaller capital projects in support of the collections
system and treatment plant. The major project is the Beech Street Lift Station/Trunk Line and
Speedway Line which will add a lift station and force mains to augment existing infrastructure and
serve the future Mill Site improvements. A future phase of this project eliminates the existing Race
Street Lift Station and the Tamarack Lift Station, consolidating all flows into the new Beech Street
Lift Station which will save operations and maintenance costs. ($1,800,000)
Stormwater Improvements $2,025,000
All Stormwater improvements are related to other City projects and includes:
Piping and associated improvements in support of the North 1St Street Improvement project.
($1,790,000)
Randall Park improvements will be made in order to increase retention capacity. This work is
important since any improvements in retention that can be made in the upper area of the drainage
basin will decrease the size of piping required in the lower part of the basin. ($50,000)
Stormwater improvements will also be made during the construction of the Fair Avenue round-
about to access the Cascade Mill site. ($160,000)
12 — Section I • Introduction
Top Ten Capital Improvements $27,387,600
Description
2015
Proposed
Expenditures
Funding Source
Airport Taxiway Improvements
Yakima Rev Development Area (LIFT)
Fire Apparatus - Ladder Truck, Engine and Vehicle
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 Tie ton 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 Progran
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
PARTNERSHIP INVESTMENTS
The City of Yakima is committed to building cooperative and reciprocal partnerships with local,
regional, state, federal, non-profit, and private entities to enhance the vitality and quality of life for
its residents, businesses, and guests. To that end, the City proposes the following partnership
investments in 2015.
Capitol Theatre Management Fee Increase $50,000
The Capitol Theatre is owned by the City of Yakima. For the past 34 years, the facility has been
managed by the Capitol Theatre Committee (CTC), a separate non-profit corporation administered
by a professional staff under the stewardship of a community-based volunteer board of directors.
The City and CTC work under the covenants of a management agreement that has been in place
since the 1975 reopening of the facility. Under the terms of the agreement, the Capitol Theatre
Committee is responsible for:
➢ The enhancement of the economic and cultural climate of the City and its environs
➢ The promotion, operation, and/or use of such facility for assembly purposes
➢ All costs of administration and daily operational expenses including general maintenance
The City is responsible for the major upkeep, maintenance, and repair of the Theatre premises and
fixtures. The City proposes to increase the Capital Theatre Management Fee by $50,000 (from
$232,000 to $282,000) in order to enhance the Capitol Theatre's ability to expand and diversify its
programming and improve its marketing outreach.
Convention Center Management Fee Increase $13,000
Yakima Valley Tourism manages and operates the Yakima Convention Center. Over the years,
operation and management costs have continued to increase. Staff is requesting that the
management and operation fee be increased by $13,000 in 2015 to assist in marketing efforts of
Introduction • Section I -13
Yakima in order to stimulate economic growth through convention business and tourism. This will
increase the annual management fee from $708,200 to $721,200 in 2015.
Southeast Community Center $100,000
The Southeast Community Center is another City -owned facility in need of upgrades. While the
City pays a fee for management and operations of the facility, it has contributed minimally toward
facility improvements. The existing restrooms are 40 years old, in disrepair, and are beginning to
fail. Staff proposed that the City provide the supplies and materials needed for the remodel along
with major plumbing and electrical contractor costs.
Sports Commission Fee Increase $8,000
The Yakima Sports Commission is responsible for bringing new and existing sporting events to the
City of Yakima. These events contribute millions of dollars to Yakima s economy. Staff proposes
increasing the Sports Commission fee from $59,000 to $65,000 in 2015.
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 investments
below.
Customer Service Training $100,000
Based on the information gathered from citizen and employee surveys, in 2015 the City will continue
its Excellence in Customer Service Academy in which employees train peers on customer service
and various other skills that can be used in working with the public.
Citizen Survey $35,000
The annual citizen survey provides valuable information to the City Council and staff as to what the
citizens think about the community and suggestions on how funds should be spent. The results help
the Council establish and set priorities of City programs and services to respond to the citizens'
requests. The first survey was conducted in 2012 and it was clear the City had not been listening to
its citizens. Based on the 2014 results, the City is making improvements in several areas, specifically
the overall direction the City is heading. Staff suggests conducting the annual citizen survey in 2015
to see if the City continues making progress in meeting the needs of the citizens.
Employee Survey $17,500
The City of Yakima has made a commitment to seek input from employees on the health and climate
of the organization and then use that information to develop strategies for organizational
improvements. This assessment is one tool to help City leadership leverage strengths and address
opportunities to continue its work to create a higher performing organization. Staff suggests that
the employee survey be conducted in 2015 to see what improvements have been made and what
changes still need to be made.
Purchasing Software $25,000
Purchasing procurement system to automate current manual processes. The County will fund 47%
of this purchase since it shares the purchasing function with the City.
14 — Section I • Introduction
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 stability and sustainability in future years.
In presenting the budget to the City Council, I would like to acknowledge and express appreciation
to the City leadership team and staff for its willingness to submit realistic budget requests and
develop initiatives to meet the Council's and community's priorities. I would also like to recognize
the Finance Department for its assistance in preparing this budget and its 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.
Tony O'Rourke
City Manager
Introduction • Section I —15
INTRODUCTION: BUDGET SUMMARY
This Budget Summary Section provides a high-level overview of the 2014 year-end forecast and the
preliminary 2015 budget, along with significant issues that have affected the City's fiscal position in
the past year and/or are anticipated to have a material impact in 2015.
2014 YEAR END ESTIMATE VS. 2015 BUDGET OVERVIEW
The chart below shows the 2015 budget, including beginning and ending fund balances in summary
format.
2014 BUDGET SUMMARY
Estimated 2015 2015 Estimated
2015 Beg. Projected Proposed Use of 2015 Ending
Fund Balance Revenue Expenditure Reserves Balance
General Fund $8,374,076 $61,061,259 $60,738,516 $322,743 $8,696,819
Parks and Re c re a tion 556,239 4,709,455 4,713,152 (3,697) $552,542
Street &Traffic Operations 997,502 4,718,610 5,049,379 (330,769) $666,733
General Government Subtotal 9,927,817 70,489,324 70,501,047 (11,723) 9,916,094
Utilitie s/Othe r Ope rating 18,710,967 70,705,373 72,043,937 (1,338,564) $17,372,403
Ca pita 1 Improvement 19,974,697 32,705,773 39,023,263 (6,317,490) $13,657,207
Risk Management Reserves 742,707 3,684,000 3,715,688 (31,688) $711,019
Employee Bene fit Reserves 4,829,352 12,509,688 12,865,238 (355,550) $4,473,802
G.O. Bond Debt Service 340,814 4,700,411 4,709,429 (9,018) $331,796
Utility Revenue Bond Debt Service 1,762,214 2,134,280 2,132,155 2,125 $1,764,339
Trust and Agency Funds 958,666 620,277 617,777 2,500 $961,166
Total $57,247,234 $197,549,126 $205,608,534 ($8,059,408) $49,187,826
The estimated resources for all funds, including beginning balances, are $254.8 million. This
represents a decrease of $10.4 million or 3.9% less than the 2014 Year -End Estimate of $265.2 million.
The expenditure budget for FY 2015 for all funds is $205.6 million. This represents a decrease of $2.3
million or 1.1% less than the 2014 Year -End Estimate.
Some features of the Fiscal Year 2015 budget that should be noted are:
Revenues
➢ The general operating property tax levy for FY 2015 is estimated to be $3.122 per $1,000 of
assessed value, an increase of $0.0034 or 0.1% over the current rate.
➢ The debt related to the voter -approved levy was paid in full in 2014, so the levy the 2014 levy
of $0.0197 is totally eliminated.
➢ The combined general operating and debt service levy rate is $3.122 per $1,000 of assessed
value, a decrease of $0.016 or 0.5%.
Introduction • Section I —17
➢ Refuse is proposing a rate increase that will average about 7% in total, ranging from $0.98 to
$2.00 per account per month. This will be the first rate increase to support the basic
operations of this utility since 2008.
➢ Water, Wastewater, Stormwater and Irrigation utilities are not proposing rate adjustments in
2015. Recent rate studies indicate increases are needed for all but Irrigation, but management
is proposing to postpone any rate adjustments until 2016.
Personnel
➢ 754.42 total proposed full-time (FTE) positions in all funds for Fiscal Year 2015.
➢ A net increase of 6.0 FTE's from 2014.
➢ Refer to the General Staffing section for more information.
Capital Improvements
➢ The City will invest $40.5 million in FY 2015 to address its capital needs. This includes all
capital funds and the equipment replacement portion of the Equipment Rental fund.
FINANCIAL CONDITION
Despite several years of downward pressure on revenues mainly due to tax relief legislation and the
economic recession, Yakima is emerging from the recession and is continuing to maintain fiscal stability.
Bond Ratings
The City is proud of affirming an "AA-" rating from Standard and Poor's on its water and wastewater
utilities. Also, in 2014 Standard and Poor's upgraded the City's rating on its general obligation bonds
from "A+" to "AA-" in 2014. Careful preparation by the staff, combined with good audits, high level of
fiscal responsibility and comprehensive written financial policies resulted in this upgrade. Abetter
rating means the City's general obligation bonds are considered to be of high investment quality, which
translates into lower interest rates and corresponding lower interest payments.
Revenues
Ad valorem taxes - To ensure its long-term financial success, the City is proposing to set its
operating property tax levy at rate of $3.1222 per $1,000 of assessed value in Fiscal Year 2015. The
State law allows the City to impose 1% above the prior year levy, plus levies for new construction
and annexations. The City estimates to collect $407,000 or 2.5% more in the FY 2015 levy than it did
in FY 2014, as new construction is estimated to generate 1.5% added to the 1% inflationary increase.
The City's sales, franchise, and other demand -driven revenues fluctuate with the economy. As the City
has learned over the past few years, a slumping economy leads to lower retail sales, which in turn,
translates to lower sales tax revenue. Less traveling leads to lower fuel tax revenue. Declining economic
growth leads to less construction, less renovation, fewer home improvements, and thus declining
revenue. Positive economic growth, on the other hand, promises to reverse this trend. Most economists
are expecting the economy to grow at a modest rate during the coming year. However, rather than
growth returning to normal levels quickly, the economy will move slowly but steadily upward. The
City has, therefore, adopted a moderate growth philosophy for FY 2015 revenue estimates.
MAJOR POLICY CONSIDERATIONS
The recent recession continues to present a strong headwind, and the lethargic economic recovery
only exacerbates the City's financial pressures. According to most economists, the economy's key
bellwether, the Gross Domestic Product (GDP), is forecast to grow only 2.0% to 3.0% annually.
18 — Section I • Introduction
5 -Year Plan Financial Plan
In the summer of 2012, the City Council was presented with a preliminary 5 -year financial
forecast that was based on existing revenue streams and city services. Those projections were
based on an assumption of continuing business as usual - with our current structure, services,
operating practices, etc. That report provided a look at the financial consequences of
maintaining the status quo, which were annual deficits ranging from $1.5 to $4.0 million
between FY 2014 and FY 2017.
On August 21St, 2012, the official 5 -year financial plan was adopted by the City Council. This was
the next step in addressing long-term strategies to balance the General Government (i.e. tax -
supported funds, which include General; Streets and Traffic Engineering; and Parks and Recreation)
budgets. Budget balancing strategies in this first report included:
➢ Wage and Benefit concessions
➢ Airport Fire Service reassignments
➢ 2% Vacancy rate
➢ Health Care cost adjustments
➢ Managed Competition
➢ Attrition/Service reductions
The Five -Year Financial Plan was designed to focus on the City's General Government given these
operations are core to the City's ability to provide essential services and capital improvements As
time goes on, this plan is being monitored, as economic/business conditions will likely be different
from preliminary estimates. The plan was updated and presented to Council on January 21, 2014.
Any significant changes in assumptions will require future modifications to the plan.
The 5 -Year Financial Plan was meant to assist the City Council in meeting the following key goals:
➢ Ensuring a financially sustainable future.
➢ Preservation of the City's core services.
➢ Commitment to funding infrastructure; facilities and rolling stock.
➢ Addressing Strategic Plan priorities.
Based on the results of the preliminary Five -Year Financial Forecast, the City developed a longer-
term strategy for dealing with both the current and future budget reality, which included
maintaining a 2% vacancy rate that was to be carried forward into future years.
Although the City of Yakima is slowly coming out of the worst economic recession in recent history,
the Five Year Financial Plan represents a prudent and balanced strategy for meeting its fiscal
challenges. The strategy reflected in the Five Year Financial Plan allows the City to eliminate
projected budget gaps, and make critical investments in its infrastructure. Moreover, the strategy
will allow the City to continue to provide essential, outstanding cost effective service and capital
improvements to our residents and businesses.
Despite economic hurdles, the City must continue to invest in its core strategic priorities. To that
end, several initiatives have been proposed in 2014 and 2015 to address and advance the City
Council's five strategic priorities as set forth in the updated 5 -Year Plan.
Introduction • Section I -19
Uti litie W/Othe r
Ope rating
$72.0
35.0%
Utili ti e s/Othe r
Ope rating
$59.4
35.1 %
2015 EXPENDITURE BUDGET BY FUND
($205.6 MILLION)
Risk
Manage ment
Capital Reserve s
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.O
1.0
Street& Traffic
Ope rations
$5.1
2.5%
Parks and
Recreation
$4.7
2.3%
2015 RESOURCES BUDGET BY FUND
($254.8 MILLION)
Capital
Improve ment
$52.7
20.7%
Resources =
Revenues plus
Beginning Fund Balance
20 - Section I • Introduction
Risk
Manage ment
Reserves Employee
$4.4 Benefit
1.7% Reserves
$17.3
6.58%
Street & Traffic
Operations
$5.7
2.2%
Parks and
Recreation
$5.3
2.1%
Tnist and Agency
Funds
$0.6
0.3%
General Fund
$60.8
29.5%
G.O. Bond Debt
Service
$5.1
/ 2.0%
Utility Revenue
Bond Debt
Service
$3.9
1.5%
Tnist and Agency
Funds
$1.6
0.6%
General Fund
$69.4
27.3%
The proposed 2015 total city-wide expenditure budget of $205.6 million is balanced within existing
resources and reflects an decrease of $2.3 million from the 2014 year-end estimate of $207.9 million.
The 2015 General Government budget of $70.5 million is approximately $2.2 million more than the
2014 year-end estimate of $68.3 million. The General Government budget consists of three separate
Funds: the General Fund, the Parks Fund and the Streets and Traffic Fund. Over 67% of these tax
supported budgets are devoted to public safety services in the 2015 budget; this includes Police, Fire,
Courts and support to these departments from the Technology Services, Finance, Legal, and Human
Resources divisions, along with code enforcement, animal control, street lighting, traffic control, and
snow and ice removal activities.
MID -YEAR CHANGES
As the 2015 budget was developed, changes that needed to happen before the 2015 budget year were
found and expeditiously put into place during 2014. The following are the elements that were
implemented/authorized in 2014, and incorporated into the 2015 budget.
Description
MID -YEAR CHANGES
Inc/Dec Emp's
General Fund
Add Training Program Coordinator $78,700
Add City Attorney II 123,500
Add Legal Assistant II 32,000
Police
Reorganization
Delete 2.00 Police Services Superviso (179,700) (2.00)
Add 1.00 Police Services Manager 96,800 1.00
Add Police Application Specialist 84,800 1.00
Delete 1.00 YPD Fleet Specialist (60,800) (1.00)
80,700 1.00
Sub -Total Reorganization 21,800 0.00
Total General Fund 256,000 2.50
Add Human Resources Specialist 70,000 1.00
Total City -Wide $326,000 3.50
1.00
1.00
0.50
1\C11 LJ La LC L11111C CX 11 LLC1ll6C1L4C
Notes
Human Resources
Indigent Defense
Indigent Defense
Oper Efficiency/Accountabilit`
Employee Benefit Reserves
Introduction • Section I — 21
2015 BUDGET ADJUSTMENTS
General Government Program Changes
The following chart is a summary of General Government cost reductions in the 2015 budget. These
savings are being repurposed for the capital improvement program.
Description
GENERAL GOVERNMENT COST REDUCTIONS
Inc/(Dec) Emp's F/V Notes
City Manager
Delete Strategic Project Manager
Delete Computer Client Svcs Tech
Modify Advertising
GFI Reduce Outside Consultant
Municipal Court
Delete Municipal Court Cashier
Temporary Position
Community Development
Delete Code Inspection Office Supe
Add Department Assistant II
Jail
Medical Services Contract RFP
Engineering
Delete Traffic Techs
Delete Traffic Techs
Delete Supervising Traffic Engineer
Delete City Engineer
Traffic Pavement Cond Analysis
Public Works
Delete Street Maintenance
Recalculate PW Admin Allocation
Total General Government
($140,000)
(60,000)
(10,000)
(65,000)
(1.00) V Personnel
(1.00) V Personnel
Non -Pe rs onne
Non -Pe rs onne
(52,200) (1.00) V Personnel
27,000 - - Personnel
(88,000) (1.00) V Personnel
44,000 1.00
(40,000)
(73,200)
(73,200)
(94,000)
(110,700)
80,000
(1.00) F
(1.00) V
(1.00) V
(1.00) V
Personnel
Non -Pe rs onne
Personnel
Personnel
Personnel
Personnel
Non -Pe rs onne
(63,400) (1.00) V Personnel
(55,700) -
($774,400) (8.00)
F -Filled V - Vacant
Non -Pe rs onne
The next chart is a summary of General Government Strategic Initiatives budgeted for 2015, along
with the strategic priorities being addressed by each initiative.
22 — Section I • Introduction
Description
GENERAL GOVERNMENT STRATEGIC INITIATIVES
Inc/(Dec) Emp's Notes
City Administration
Emergency Preparedness
Add Emergency Management Specialist
Professional Service s
Add Economic Development Dept Asst
Wine, Craft Beer & Cider Marketing/Brandie
Enhance/Expand Downtown Special Events
Airport Marketing
Add Dept. Assistant III in City Clerk's Offic(
Indigent Defense Contract
Human Resources
Add Human Resources Assistant
Finance
Procurement Software & Services
Community Development
Contract for Comprehensive Plan Updates
Transition Code Compliance Program
Police
Add Police Officers
Add Public Information Officer
Reclassify 4 Police Officers to Corporal
Reclassify 4 Police Svc Spec I to Lead Svc Si
Yakima County Range Agreement
Fire
Union Gap Fire
Public Works
Snow Blower for the Streets Department
Total General Government
Economic Development -ED
$52,100 0.50 Support for new City program
35,000 - Transitional Training
65,900 1.00 Support for Downtown Events
50,000 - Contract for brand development
102,000 - All paid by concession revenue
250,000 - 1/2 paid by Grant reimbursement
32,000 0.50 Support Public Records requests
400,000 - To meet State Mandate (2013)
Implementation date was
postponed, increases require d in
2015
Priority
PS
PS
ED
ED
ED
ED
PT
PS
44,500 0.50 Public Safety Recruiting Support PS
25,000 - About 1/2 paid by County ($11.5Krev PT
90,000 - 1/2 Planning; 1/2 Streets ED
55,000 - From ONDS to Code Compliance BE
173,400 2.00 Federal Agency Liaisons PS
63,600 1.00 Improve PD/Citizen Communications PS
25,000 - Police Leadership Development PS
28,000 - Organizational Improvement PS
150,000 - PS
To be added to the Final Budget PA
175,000 - Administer new Snow RemovalPolici PS
$1,816,500 5.50
Strategic Priority Legend
Public Trust& Accountability -PT Public Safety -PS
Partnerships - PA Built Environment - BE
Other Fund Changes
The following is a summary of strategic initiatives in the other operating and utility funds.
OTHER FUND STRATEGIC INITIATIVES
Introduction • Section I — 23
Description Inc/(Dec) Emp's Notes Priority
City Administration
Move Visitors Information Center
Update Conv Ctr Expansion Plan
Convention Center Management Fee
Increase Sports Commission Allocation
Increase CTC Management Fee
Support SunDome Operations
24 — Section I • Introduction
$130,000
16,000
13,000
2,000
50,000
100,000
- Conv Ctr Capital Fund Balance
- Hotel/Motel Tax
- Hotel/Motel Tax
- Hotel/Motel Tax
- 1/2 HMT; 1/2 PFD
- Hotel/Motel Tax
ED
ED
ED
ED
ED
ED
Description Inc/(Dec) Emp's Notes
Community Development
Cascade Millsite Development
Delete ONDS DA II
Reduce Code Compliance Program
City Hall Improvements
Police
Repalce Jail Control Panel
Live Scan Fingerprinting System
Radio Replacement Program
Complete SWAT Comm Sys Upgrade
Communications Center Relocation
Fire
Fire Ladder Truck and Engine
Replace 2 Staff Vehicles
Other Fire -fighting Equipment
Fire Rescue Boat/Truck from Broadway FD
Airport
2 Maintenance Trucks
21st Ave Road Improvements
Utilities & Engine e ring
N 1st Street Reviatlization
Complete Railroad Underpass Project
Wastewater Capital Program
Water Capital Program
Irrigation Capital Program
Stormwater Capital Program
Public Works
Add Transit Operations Specialist
Purchase 3 Heavy Duty Replacement
Add Refuse Collector/Driver
Refuse Rate Proposal
Fleet Vehicle Additions & Replacements
Add 2 Mechanic I Positions
SE Community Center Restroom Restoratio]
Randall Park Improvement
Total City - Other Funds
3,500,000
(52,300)
(55,000)
440,000
165,000
70,000
15,000
31,000
1,213,000
1,600,000
90,000
75,000
40,000
55,000
175,000
1,300,000
600,000
4,690,000
2,500,000
1,250,000
2,025,000
76,200
1,290,000
65,900
(386,000)
1,490,000
137,400
100,000
900,000
- LIFT Funds
(1.00) CDGB
- Move 1/3 to GF
- REET 1
- L&J Capital
- L&J Capital
- L&J Capital
- L&J Capital
- Public Safety Comm Fund
- Funded by LOCAL Lease Prog.
- Funded by LOCAL Lease Prog.
- Funded by LOCAL Lease Prog.
- Fire Capital
- Airport Operating Fund
- Arterial Street Fund
- Piping and Digester Improve m€
- No 1st St Main; plant intake
- W Yakima System Imp
- North 1st Street
1.00 Transit Operating
- Transit Capital
1.00 Refuse Operating
- Rate Revenue
- Equipment Rental
2.00 Equipment Rental
- Parks Capital
- Parks Capital-Donations/Grants
$23,711,200 3.00
Priority
ED
PT
PT
BE
PS
PS
PS
PS
PS
PS
PS
PS
PS
ED
BE
BE
BE
BE
BE
ED
BE
BE
BE
PT
PT
BE
BE
GENERAL STAFFING - ADJUSTMENTS SUMMARY & COMPARISONS
The following chart summarizes the general government (i.e. tax -supported) and non -general
government position additions, deletions and transfers implemented mid -year 2014 as well as those
included in the 2015 budget. Each of the Non -General Government proposals has an identified
revenue source or other expenditure reduction to support the additional cost.
Introduction • Section I — 25
Fund/Department
2015 BUDGETED POSITION ADJUSTMENTS
Description Chg
GG Other
Base & Base &
# F/V Benefits Benefits
Remarks
Mid -Year Changes
Human Resources Training Program Coord Add
Legal
Police
Human Res Spec
City Attorney II
Legal Assistant II
Re organization
Police Services Spvsr
Police Services Mgr
YPD Fleet Specialist
Crime & Intel
Add
Add
Add
Del
Add
Del
Add
Police Applications Spc Add
Police Reorganization Total
Total Mid -Year Change s
2015 Budget Change s
Cost Reductions
City Manager
Strategic Project Mgr
Comp Client Svcs Tech
Municipal Court Muni Court Cashier
Community Dev Code Insp Office Super
DA II
Engineering Traffic Techs
Supervising Traffic Eng
City Engineer
Del
Del
Del
Del
Add
Del
Del
Del
Streets Street Maintenance Spec Del
Total Cost Reductions
Strate gic Initiative s
City Manager
Emergency Mgmt Spec
Econ Dev Dept Asst
DA II - Clerks
Human Resource Human Resources Asst
Police
Community Dev
Public Works
Police Officers
Public Info Officer
Delete 1.00 ONDS
Transit System
Solid Waste
Mechanic I
Total Budget Changes
Add
Add
Add
Add
Add
Add
Del
Add
Add
Add
1.00 - $78,700
1.00 - - $70,000
1.00 - 123,500 -
0.50 - 32,000
(2.00) V (179,700)
1.00 - 96,800
(1.00) V (60,800)
1.00 - 80,700
1.00 - 84,800
0.00 21,800
3.50
256,000 70,000
(1.00) V (140,000) -
(1.00) V (60,000) -
(1.00) V (52,044) -
(1.00) V (88,000) -
1.00 - 44,000 -
(2.00) F/V (146,400)
(1.00) V (94,000)
(1.00) V (110,700) -
(1.00) V (63,400)
(8.00) (710,544) 70,000
0.50 - 52,100
1.00 - 65,900
0.50 - 44,500
0.50 - 44,500
2.00 - 173,400
1.00 - 63,600 -
(1.00) F - (52,300)
1.00 - - 76,200
1.00 - - 65,900
2.00 - - 137,400
Total Strategic Initiatives 8.50
0.50
Total General Gove rnment Positions
Total Other Fund Positions
Total Positions
26 — Section I • Introduction
2.00
4.00
4.00
444,000 227,200
($266,544) $297,200
Emphasis on Emp Training
Employee Benefit
Indigent Defense
Indigent Defense
Reinstate
Manage Tech/Upgrade UPI
Changing Pavement
Condition Indexing
Emergency Prep Program
Administer Events
Public Disclosure requests
Police Recruiting
Federal Agency Liaison
Communications
Block Grant re duction
Technology Liaison to IT
Inc accounts f/annexations
Timely equipment repair
($10,544) $367,200 Tota12015 Changes
- Filled V - Vacant
➢ A net of 2.5 FTE's were added to General Government mid -year, and a net 2.5 positions are
being subtracted in the 2015 Budget for no net change of FTE's from the 2014 Adopted
Budget.
➢ A net of 1.0 FTE's were added to other government funds mid -year, and 3.0 in the 2015
Budget for a total increase of 4.0 FTE's.
In the 2015 budget, management continues to accommodate Federal and State unfunded mandates
and provides critical public safety and other essential services. In an effort to minimize costs and
increase efficiencies, management has increased, decreased, and reorganized personnel resources in
the 2015 budget.
➢ The per capita number of General Government employees has decreased over the past
decade (per every 1,000 population), from 5.8 FTE's in 2005 down to 5.2 FTE's in 2015.
Comparison with other Cities - Payroll
The data utilized in the following comparison was compiled from the State Auditor's Local
Government Comparative Statistics for 2013, and includes comparisons of comparable Washington
State cities with populations between 50,000 and 135,000.
PAYROLL COSTS
Yakima's per capita expenditures on payroll is $526
$1,000 which is $3 less than the average city per capita of $529 $860
$800
$600 $480
$523 $526 $559
$303 $344 $356
$392 $398
$400
$200
$0
Marysville Pasco Kent Auburn Kennewick Richland Kirkland Yakima Renton Bellevue Everett Redmond
$681
$924
It should be noted that the City of Yakima has operations that utilize staff that other cities may not
have. For example irrigation, transit, public safety communications, commercial airport, and refuse
operations are combined in regional special purpose districts or contracted out for many of these
comparable cities.
PRELIMINARY BUDGET
The 2015 Preliminary Budget broken down by Department, as reflected in the following chart,
provides a clear picture of the resource requirements of each functional area within the City and
how each area compares both to each other and to the total General Government budget of the City
- in dollars and staffing levels.
Introduction • Section I — 27
2015 GENERAL GOVERNMENT PRELIMINARY BUDGET
(By Department)
2015 Dollars in Millions
Proposed
Organizational Unit Expenditure
Police $26,687,333
Fire 10,680,888
Transfers 5,543,875
Streets &Traffic Oper. 5,049,379
Parks 4,713,152
Information Systems 2,893,070
Code Administration 1,683,102
Financial Services 1,601,125
Utility Services 1,582,844
Le gal 1,516,206
Municipal Court 1,370,533
Police Pension 1,219,900
Indigent Defense 1,000,500
Engine e ring 890,530
Economic Development 677,329
Purcha sing 654,699
Human Resources 664,003
Planning 581,384
City Clerk/Records 593,216
City Hall Maintenance 524,298
City Manager 383,893
City Council 286,735
Gang Free Initiative 230,820
Emergency Pre paredne 212,246
Inte rgove rnme nta l 174,989
State Examiner 110,000
2% Vacancy Rate (1,025,000)
Total $70,501,047
of
Total
-1 1 3 5 7 9 11 13 15 17 19 21 23 25 27 Budget
1
• Personnel
0 Non -Personnel
37.9%
15.1%
7.9%
7.2%
6.7%
4.1%
2.4%
2.3%
2.2%
2.2%
1.9%
1.7%
1.4%
1.3%
1.0%
0.9%
0.9%
0.8%
0.8%
0.7%
0.5%
0.4%
0.3%
0.3%
0.2%
0.2%
(1.5%)
100.0%
The Police Department consumes 37.9% of the $70.5 million General Government budget, while the
Fire Department consumes another 15.1%. No other single Department utilizes more than 7.9% of
the total General Government budget.
The Streets & Traffic Department budget (7.9%) and the Parks and Recreation Department budget
(7.2%) come in a distant 3rd and 4th place for the utilization of available resources. This has been
the relative utilization of General Government resources for many years, and continues to reflect the
Council's strategic priorities for the coming year.
28 - Section I • Introduction
The preceding chart summarized General Government by functional area, while the following chart
summarizes general government operation by classification of expenditure.
GENERAL GOVERNMENT EXPENDITURES BY CLASSIFICATION
Salaries &
Benefits
$48.6
68.9%
Supplies
$2.7
3.8%
Other Services
& Charges
$9.8
13.8%
Intergo v't
Services
$2.1
3.0%
Capital Outlay
$0.1
0.1%
Debt S ervice
$3.2
4.5%
Interfund
Transfers
$4.1
5.9%
Projected Ending Cash Balance (Reserve)
General Government resources consist of annual revenues and cash reserves (fund balances). Prudent
fiscal management dictates that adequate reserves be maintained to help ensure the City is prepared to
meet any number of unbudgeted and/or unforeseen circumstances that may arise, without requiring
major disruptions to normal business operations. Reserves are typically utilized for many different
business purposes, including: provide for emergencies; cover temporary cash flow needs; take
advantage of one-time, unanticipated opportunities; provide grant matching funds; cover revenue
shortfalls; and accommodate unforeseen expenditures and other contingencies.
2015 GENERAL GOVERNMENT
PROJECTED REVENUES, EXPENDITURES AND CASH BALANCES
2015 2015 2015 2015
2015 2015 Exp Estimated Estimated End Bal
Projected Proposed as % of Beginning Ending as % of
Revenue Expenditures Diff Rev Balance Balance Exp
General Fund $61,061,259 $60,738,516 $322,743 (0.5%) $8,374,076 $8,696,818 14.3%
Parks &Recreation 4,709,455 4,713,152 (3,697) 0.1% 556,239 $552,542 11.7%
Street & Traffic Fund 4,718,610 5,049,379 (330,769) 7.0% 997,502 $666,733 13.2%
Total General Government $70,489,324 $70,501,047 ($11,723) 0.0% $9,927,817 $9,916,093 14.1%
Introduction • Section I — 29
The 2015 General Government preliminary budget is balanced with virtually no use of reserves and
the ending reserve balance is projected to be $9.9 million or 14.1% of the budgeted expenditures,
which is slightly below the recommended "best practice" of 16.7%, primarily because of the use of $1.1
million of reserves in 2014 to purchase 4 properties that were former gas stations with environmental
clean-up issues. When these properties are sold, the reserve level should increase to 15.6%.
Cash reserves are an integral and critical component of responsible fiscal management and business
planning. Standard and Poor's, a national rating agency, included two references to the City's
general fund reserves in explaining the City's credit strengths that influenced their most recent
(May, 2014) upgrade of the City's credit rating to "AA-". Standard and Poor's stated in their report
that the City has a "Very strong budgetary flexibility, with fiscal 2013 unaudited reserves equal to
18% of expenditures", "Very strong liquidity supports Yakima's finances, with total government
available cash equal to 21% government fund expenditures and 4X debt service."
The following chart reflects a history of the City's General Government fiscal condition.
GENERAL GOVERNMENT FUNDS
RESERVES USAGE AND BALANCE COMPARISONS
(1) (2) (3) (4) (5)
2014 2014 2015
2013 Amended Year -End Proposed Variance
Actual Budget Estimate Expenditure (4-2)
Beg. Reserve Balance $10,908,094 $10,883,754 $10,883,754 $9,916,093
Revenue 63,522,204 67,378,138 67,370,560 70,489,324
Total Resources $74,430,298 $78,261,892 $78,254,314 $80,405,417 $2,143,525
Expenditure Budget 63,539,479 68,912,527 68,326,497 70,501,047 1,588,520
End. Reserve Balance
% of Annual Expenditures
$10,890,819 $9,349,365 $9,927,817 $9,904,370
17.1% 13.6% 14.5% E 14.0%
Inc/(Dec) in Reserves f/ Prior Year ($17,275)
% of Expenditure Budget (0.0%)
($1,534,389) ($955,937) ($11,723)
(2.2%) (1.4%)
(0.0%)
Revenues
➢ 2015 projected revenues reflect an increase from the 2014 year-end estimate of 4.6%.
Expenditures
➢ The 2014 year-end expenditures are projected to be $0.6 million less than the Amended
budget.
➢ The 2015 proposed expenditure budget is $2.2 million more than the 2014 year-end estimate
and $1.6 million more than the 2014 authorized expenditure level.
30 — Section I • Introduction
Reserves
➢ A comparison of the 2013 beginning and ending reserve balances reflects a break-even
position. This good result was primarily due to the increasing growth in the economy and
related increase in sales and utility taxes.
➢ 2014 year-end projections indicate a use of reserves during 2014 of about $956,000, which is
due primarily due to the one-time purchase of environmentally hazardous property costing
$1.1 million, with the intent to partner with the Department of Ecology to clean the property
and then resell. 2014 is also virtually balanced without this one-time expenditure.
➢ The 2015 budgeted year-end reserve level is approx. 14.0%; this is slightly below the reserve
guidelines, as noted previously, and expenditures virtually equal revenues.
2015 GENERAL GOVERNMENT BUDGET - HISTORY AND HIGHLIGHTS
For five years now, staff has been closely monitoring the financial crisis and economic recession that
has gripped our entire nation, our State and our local economy. Staff has prepared, and updated,
2014 and 2015 revenue projections for the City based on the economic condition of our region.
General Government revenues had been flat for about 4 years when the recession started (hovering
between $57.4 and $57.6 million from 2008 through 2011), but started to turn around in 2012. Much
of the revenue increase from 2011 to 2012 actual is the result of City Council's increase of the Water,
Wastewater, Refuse and Stormwater utility tax by 6% - this accounts for about $2 million or half of
the $4.0 million increase. This new revenue was earmarked specifically for Public Safety, and is
supporting 12 Police Officers, a Firefighter, and other public safety support. When the new revenue
source is removed, 2012 did experience revenue growth of about $2.0 million or 3.2%.
Starting in June, 2012, sales tax started to consistently grow each month. By the end of 2012, the
year -over -year growth was $904,000 or 7.2% from 2011. This was spurred by a good crop year and
construction led by the Yakima School district's spending on the high schools. Note: The 2012 total
of $13.5 million was still below the 2008 actuals.
2013 continued the growth trend, with another year experiencing $901,000 or 6.7% growth from
2012. Fortunately, 2014 is continuing a growth trend and through the 10 months ended October 31,
the year-to-date sales tax is 5.2% ahead of 2013. We are estimating 2014 to be about $15.3 million,
which is now well ahead of 2008 levels.
Cost containment and efficiency improvements continue to be a strong focus and an emphasis in
every expenditure decision.
Taxes
Management has included no new taxes in the proposed 2015 Preliminary Budget.
➢ Sales Tax - The General Government budget includes revenue projections that reflect a 4.25%
or $650,000 increase in sales tax revenues from 2014 to 2015. Through the 10 months ended
October 31, the year to date sales tax is 5.2% over the prior year.
➢ Property Tax - The 2015 budget is based on a 1.0% increase in the property tax levy or about
$172,000, as currently allowed by state law, plus a 1.5% increase or $235,000 for new
construction for a total increase of $407,000.
Introduction • Section I — 31
Budget Reductions/Personnel Changes
As revenues are on the road to recovery, Council is evaluating service levels and trying to better
align service levels with citizen requests as measured by a citizen survey. Strategic initiatives to
improve City Services have been included in the budget. Because the cost of doing business
continues to grow, budget reductions were necessary in order to balance the 2014 and 2015 budgets
within available resources and maintain a minimum reserve level.
Comparison with other Cities - Expenditures and Resources
The data utilized in the following comparisons was compiled from the State Auditor's Local
Government Comparative Statistics for 2013, and includes comparisons of comparable Washington
State cities with populations between 50,000 and 135,000.
$3,500
$3,000 -
$2,500 -
$2,000 -
$1,500 -
$1,000 -
$500 -
$0
TOTAL EXPENDITURES
Yakima's percapita total expenditures are $1,692, whichis
$342 less than the average city per capita revenue of $2,034
$1,169
1
$1,222
$1,336
$1,692
$1,495
$1,926
$2,080
$2,173 $2,191
$2,969 $3,001
$3,154
Kennewick Pasco Marysville Kent Yakima Auburn Kirkland Renton Everett Richland Bellevue Redmond
$3,500 -
$3,000 -
$2,500 -
$2,000 -
$1,500 -
$1,000 -
$500 -
$0
TOTAL RESOURCES
Yakima's percapita total revenue is $1,517, whichis $541 $2,722
less than the average city per c apita of $2,058
$1,124 $1,138
$1,357
$1,517
$1,648
1
$1,876 $2,026
$2,196
$2,256
$3,142
-►
$3,695
Pasco KennewickMarysville Yakima Kent Auburn Kirkland Everett Renton Bellevue Richland Redmond
These comparisons demonstrate that the City of Yakima has limited revenue/tax base compared
with most cities of its size in the state, and yet provides similar or enhanced services to its citizens.
32 - Section I • Introduction
(For example, of the 12 cities included in the comparison, only Everett has a transit system; there are
no other city -owned irrigation systems; and a few of the cities are members of a Regional Fire
Authority, so have no fire expenditures).
As reflected on the previous pages of this section, management has closely monitored and
maintained a strong fiscal discipline over spending throughout all City departments for years. This
has preserved the City's reserve position - and an improved credit rating - during some very
difficult times. The Five Year Financial Plan contains strategies to continue to balance the budget
going forward.
NON -GENERAL GOVERNMENT FUND SUMMARY
The following chart depicts a summary of resources and expenditures for major operating and
Utility fund operations for 2015, including contingency, operating reserve funds and employee
benefit funds. Although Equipment Rental is included on the table below, it is split into an
operating component and capital component for charting operating vs. capital budgets.
Division
2015 OPERATING AND RESERVE FUNDS
2015
Projected
Reserves, RiskMgmt, Emp Benefits $16,592,926
Cap Theatre, Ce mete ry, Trust Rsys $22,405,643
Wastewater
Water/Irrigation
Transit
Refuse
Equipment Rental
Stormwate r
Airport
Special Purpose, Housing, Emer Svs
Public Wks Admin, Cable TV, Misc
$20,893,684
$24,428,446
$11,151,229
$14,384,885
$8,581,402
$9,799,390
Dollar In Millions
0 2 4 6 8 10 12 14 16 18 20 22 24 26
Reserves, Charges
Sewer Rates, Operating Re serves
11 WaterRates, Irr. Fees, Rsys
11 Transit Sales Tax, Oper Grants, Fare Bo;
$6,114,871
$6,508,149 Refuse Rates
$3,742,946
$4,607,016 Charges
$3,444,953
$3,450,362 StormwaterFees
$1,099,571
$1,110,768 Airport Fees
$15,902,128
$20,597,006
Charges, Grants, Taxes, Re serves
■ Expenditures
❑ Revenues
Total Expenditures $87,523,709
Total Re sources $107,291,665
The following describes the relationship of resources and expenditures for major capital budgets of
the City, including debt service and the capital portion of the Equipment Rental Fund.
Introduction • Section I — 33
2015 CAPITAL AND DEBT SERVICE FUNDS
2015
Division Projected
Streets
Wastewater
Airport
Water/Irrigation
Equipment Rental
Transit
Stormwater
$8,545,558
$10,753,891
$6,266,713
$10,980,524
Dollars in Millions
0 2 4 6 8 10 12 14
Rs vs, Grants, .5 Gas Tax, REET, Gen Tax:
Reserves, Charges, Loans
$12,539,721
$13,314,321 FederalGrants, Reserves, Charges
$4,623,184
$7,539,939
Reserves, Charges, Loan
$1,668,931 I-7
$5,419,365 Reserves, Charges
$1,749,000
$4,133,234
$2,025,000 la,
$2,184,734
L
• Expenditures
❑ Revenues
Reserves, Taxes, Grants
Reserves, Charges
Sp Purp Cap, Misc GO Debt $10,165,671
$12,761,546 Re serves, Grants, Taxes, Loans
Total Expenditures $47,583,778
Total Resources $67,087,554
34 — Section I • Introduction
Introduction • Section I — 35
GENERAL GOVERNMENT FUNDS: YEAR IN REVIEW
2014 GENERAL GOVERNMENT
ESTIMATED REVENUES AND EXPENDITURES
General Parks & Rec Street
Fund Fund Fund Total
Actual Beginning Balance $9,128,882 $582,492 $1,172,379 $10,883,753
Estimated Revenue 58,211,636 4,519,614 4,639,310 67,370,560
Total Estimated Resources 67,340,518 5,102,106 5,811,689 78,254,313
Less: Estimated Expenditure 58,966,443 4,545,867 4,814,188 68,326,497
Estimated Ending Balance $8,374,075 $556,239 $997,501 $9,927,816
General Government is the term used to describe basic tax supported activities, which are included
in three funds:
General Fund
Services provided include police, fire, code enforcement, planning, legal, municipal court, city
administration, financial services, purchasing, and information technology.
➢ 2014 year-end revenue estimate is $58,211,636 - $4,204,905 or 7.2% above the 2013 actual,
and $6,133,956 or 11.8% greater than 2012 actual.
➢ 2014 year-end expenditure estimate is $58,966,443 - $568,127 or 1.0% under the authorized,
amended budget of $59,534,570 due primarily to salary savings from position vacancies.
Parks and Recreation Fund
Services include Parks programs and maintenance.
➢ 2014 year-end revenue estimate is $4,519,614 - $136,565 or 3.1% above the actual levels for
2013, with the primary increase being additional utility tax transfer as 3.5% of the tax on
city -owned utilities is earmarked for Parks, and these utilities are experiencing growth.
➢ 2014 year-end expenditure estimate is $4,545,867 - just $10,680 or 0.2% under the 2014
amended budget.
Streets Fund
Services include Street and Traffic operations and maintenance.
➢ 2014 year-end revenue estimate is $4,639,310 - $493,114 or 9.6% less than actual levels for 2013,
primarily due to an adjustment of the property tax allocation to "right -size" reserve levels.
➢ 2013 year-end expenditure estimate is $4,814,188 - $7,222 or 0.1% under the 2014 amended
budget.
The effects of the national economic recession have turned around in 2013 with that upward trend
continuing in 2014. General Government adopted revenue budget is $66,135,418, so the year-end
estimate of $67,370,560 is about $1,235,142 or 1.9% more than originally budgeted, with most of this
General Government Funds • Section II -1
increase coming from the growth in sales tax, electric and natural gas utilities, and the Fire
Department's success in obtaining a SAFER hiring grant for Firefighters. These increases were included
in the appropriation ordinance that went to Council on October 7, 2014, so that the year-end estimate
now estimates the amended revenue budget. The 2013 actual revenue for these 3 funds was
$63,513,322, so the 2014 estimate is $3,857,238 or 6.1% above the prior year actual. This is due primarily
to improved factors listed above, coupled with new revenues included in the 2014 General Fund
budget, including the Cable TV utility tax being moved from debt service, revenues related to the move
of the electronics technicians from the Public Safety Communications Fund into Information
Technology Division in General Fund, and the reinstatement of the Liquor Excise Tax by the State
Legislature. As a point of reference, the annual rate of inflation as measured by the CPI -U (All Urban
Consumers) is 1.7% in August, 2014 for all cities, and the Seattle index is 1.8%.
GENERAL GOVERNMENT EXPENDITURE COMPARISON
2014 BUDGET VS. YEAR-END ESTIMATE
2014 2014 Year -End Est.
Amended Year -End as Percent of
Fund/Department Budget Estimate Variance Budget
Police $26,278,167 $25,915,548 $362,620 98.6%
Fire 10,387,649 10,312,002 75,648 99.3%
Transfers 4,942,275 4,442,275 500,000 89.9%
Technology Services 3,047,612 2,953,110 94,502 96.9%
Code Administration 2,639,371 2,649,654 (10,283) 100.4%
Financial Services 1,488,836 1,514,908 (26,072) 101.8%
Utility Services 1,465,199 1,421,634 43,565 97.0%
Municipal Court 1,344,118 1,333,646 10,473 99.2%
Police Pension 1,343,325 1,174,237 169,088 87.4%
Legal 1,359,323 1,370,353 (11,030) 100.8%
Engineering 1,109,632 845,776 263,856 76.2%
Indigent Defense 650,500 650,500 0 100.0%
Records 583,921 583,485 436 99.9%
Purchasing 549,369 559,132 (9,762) 101.8%
Human Resources 513,151 559,444 (46,293) 109.0%
Planning 497,481 476,414 21,067 95.8%
Economic Development 511,733 449,242 62,491 87.8%
City Hall Maintenance 422,885 399,221 23,664 94.4%
City Management 372,684 370,196 2,488 99.3%
Gang Free Initiative 333,105 330,972 2,133 99.4%
City Council 290,199 291,163 (964) 100.3%
Intergovernmental 244,031 244,031 0 100.0%
State Examiner 110,000 110,000 0 100.0%
Emergency Preparedness 0 9,500 (9,500) n/a
Non -Recurring Expenses (950,000) 0 (950,000) 0.0%
Total General Fund 59,534,570 58,966,443 568,127 99.0%
Parks & Recreation 4,556,548 4,545,867 10,680 99.8%
Street & Traffic Operations 4,821,409 4,814,188 7,222 99.9%
Total General Government $68,912,527 $68,326,497 $586,029 99.1%
2 - Section II • General Government Funds
The preceding table provides a breakdown of the year-end estimate of General Government
budgets for 2014. The largest positive variance (expenditure savings) is in the category of Transfers
to other funds, as we budgeted for a match contribution for the LIFT project, if necessary. The need
for the transfer along with available funding will be determined at year-end. The next is in the
Police Department and relates to salary savings from several vacancies. Most of the other positive
variances are also related to position vacancies.
Following is a listing of departments projected to exceed budget:
➢ Human Resources and Legal- As previously discussed, Human Resources added a training
position, and the Legal Department added a prosecuting attorney in mid -2014 to be
prepared for the implementation of the new indigent defense case limits.
➢ Purchasing and Code Administration - Both have relatively tight budgets and no vacancies,
which made it difficult to absorb the lump sum cash -outs of the labor settlements and/or the
new vacation sell -back program.
➢ Financial Services - The implementation of a new comprehensive Financial Management,
Work Order, Job Cost system in January required significant staff support in addition to the
regular day to day work, resulting in significant overtime and temporary assistance. There
is still much work to do to bring on additional operating divisions which have not
previously been part of job costing or the work order system, and to develop meaningful
reports to get required information out of the system.
➢ Emergency Preparedness - In August, 2014 Council authorized moving the program in-
house. Even though the effective date of the transition in January 1, 2015, the manager is
anticipating required training in 2014 that is being included in this new operating division.
Because the legal level of control for budget authority is the fund level, and General Fund is
estimated to be under spent in total, staff is not proposing budget amendments for these overages
at this time.
GENERAL FUND
THREE YEAR COMPARISON
2014
2012 2013 Year -End
Actual Actual Estimate
Beginning Balance $8,440,130 $9,128,882 $8,374,076
Revenues 52,077,680 54,006,731 58,211,636
T otal Resources 60,517,810 63,135,613 66,585,712
Expenditure s 51,487,699 54,052,924 58,966,443
Ending Balance $9,030,111 $9,082,689 $7,619,269
General Government Funds • Section II — 3
GENERAL GOVERNMENT FUNDS: REVENUE TRENDS
The City receives revenue from many different sources; some revenue is available for any
government purpose and some revenue is restricted in use to a specific fund(s) and/or a specific
purpose. The sources of revenue that are available for use within the General Government Funds
(for general purposes or for a restricted purpose within General Fund, Parks or Street Funds) are
listed in the following charts, along with a three-year comparison of the amount of revenue
received from each source.
For 2015, total General Government revenues are budgeted to be $70,489,324; $3,118,764 or 4.6%
more than the 2014 year-end estimate of $67,370,560. Total beginning cash reserves are estimated to
be $9,916,093, $11,724 or 0.1% less than the 2013 estimate of $9,927,817. This fund balance is about
14.1% of the proposed 2015 budget.
Variances in revenues at this combined level are explained briefly below. A more detailed
explanation follows the chart.
➢ Sales Tax - for 2015 is projected to be approximately $650,000 or 4.25 % above the 2014
estimate. Sales tax is currently running at 5.9% ahead of 2013 year-to-date through October.
The 2015 estimate assumes a continuation of sales tax growth as the economic development
initiatives continue.
➢ Criminal Justice Sales Tax—is also projected to increase $150,350 or 4.9%, these county -wide
sales taxes are experiencing an increase of almost 9% year over year in October. Note, this
revenue is shared with the Law and Justice Capital Fund to support police capital.
➢ Property Tax - increased $407,290 or 2.6%. This includes the levy limit increase of 1%, plus
new construction (about 1.5%), and a slight redirection from the Firemen's pension fund in
response to continued savings. That fund is estimated to only need an increase of 1.8%.
➢ Utility and Franchise taxes - increase (2015 over 2014) of $868,195 or 5.4% is largely due to
proposed increases in external utilities, (i.e. electric, natural gas, cable TV, commercial
refuse, and private water) along with an internal increase of 7% in the Refuse utility (this
will be removed from the final budget). Our Water and Wastewater utilities are also
anticipating growth, also related to the economic development activities.
➢ Charges for Services - are up by $195,167 or 2.9% primarily tied to salary adjustments and
additional staff in the administrative divisions that get charged back out to the other
operating funds through the City Service charge.
➢ State Shared Revenue - is being decreased by $12,220 or 0.4% mainly because the formula
for distributing the Liquor Excise Tax was re -interpreted to be less to cities in mid -2014 .
➢ Other Revenue - is estimated to increase by $506,289or 84% mainly due to one-time revenue
on the sale of two of the four Tiger Mart properties that don't require much environmental
clean-up, and anticipated concession revenue from the expanded downtown events (See the
Downtown Special Event strategic initiative in Section IV) .
➢ Other Intergovernmental - reflects a full year of the new Fire SAFER Grant, and the receipt
of the airport marketing grant, increasing by $213,143 or 14.2%.
The balance of the revenue categories are expected to remain relatively flat.
4 - Section II • General Government Funds
Source
GENERAL GOVERNMENT RESOURCES
THREE YEAR COMPARISON
2014 2015 % of - 2015 vs. 2014 -
2013 Year -End Percent Projected 2015 Increase Percent
Actual Estimate Change Revenue Total (Decrease) Change
General Sales Tax $14,462,963 $15,330,000 6.0% $15,980,000 22.7% $650,000 4.2%
Crim. Justice Sales Tax(1) 2,922,211 3,055,000 4.5% 3,205,350 4.5% 150,350 4.9%
Property Tax 15,696,435 15,929,100 1.5% 16,336,390 23.2% 407,290 2.6%
Franchise & Utility Taxes 14,719,274 16,044,400 9.0% 16,912,595 24.0% 868,195 5.4%
Charges for Services 6,034,110 6,681,234 10.7% 6,876,401 9.8% 195,167 2.9%
State Shared Revenue 2,784,672 2,932,500 5.3% 2,920,280 4.1% (12,220) (0.4%)
Fines and Forfeitures 1,603,138 1,610,110 0.4% 1,645,110 2.3% 35,000 2.2%
Other Taxes 1,495,525 1,419,500 (5.1%) 1,429,000 2.0% 9,500 0.7%
Other Revenue 389,737 602,489 54.6% 1,108,778 1.6% 506,289 84.0%
Transfers from other Funds 1,327,759 1,428,000 7.5% 1,505,000 2.1% 77,000 5.4%
Other Intergovernmental 1,268,630 1,499,377 18.2% 1,712,520 2.4% 213,143 14.2%
Licenses and Permits 817,750 838,850 2.6% 857,900 1.2% 19,050 2.3%
Total Revenue 63,522,204 67,370,560 6.1% 70,489,324 100.0% 3,118,764 4.6%
Beginning Fund Balance 10,883,753 9,927,817 (8.8%) 9,916,093 (11,724) (0.1%)
Total Resources $74,405,957 $77,298,377 3.9% $80,405,417 $3,107,040 4.0%
(1) Some Criminal Justice sales tax is allocated to the Law and Justice capital fund (a non -general Governmental fund)
for capital needs.
GENERAL GOVERNMENT RESOURCES
2013 YEAR-END ESTIMATE AND 2014 BUDGET FORECAST
Sales Tax/Crim Justice Sls Tax 111
Property Tax
Franchise & Utility Taxes
Charges for Services
State Shared Revenue
Fines and Forfeitures
Other Taxes
Transfers from Other Funds
Other Intergovernmental
Licenses and Permits
Other Revenue
Beginning Fund Balance
$19,185,350
$16,336,390
$2,920,280
MI$1,645,110
5 $1,429,000
5 $1,505,000
51 $1,712,520
e$857,900
$1,108,778
$6,876,401
$16,912,595
2015 vs.2014 Estimate Increase Total Resources
Amount $3,107,040
Percent 4.0%
• Proposed Expenditures
O Year -End Estimate
$9,916,093
General Government Funds • Section II - 5
In some instances, certain revenues are dedicated for specific purposes (i.e. grant proceeds).
Additionally, certain revenues are generated by operations, so that if the operations are reduced or
eliminated, the revenue would also be reduced or eliminated (i.e. Parks recreation program)
GENERAL SALES TAX (SINGLE LARGEST REVENUE SOURCE FOR GENERAL FUND)
➢ 2015 revenue projection is $15,980,000 - 4.25% above the 2014 year end estimate.
After 3 years of sales tax being about $1.1 million or 8% below the 2008 high of $13.7 million, sales
tax picked up in 2012. The tax collected in 2012 was $13.5 million, 7.2% greater than 2011. This
trend continued - 2013 sales tax was 6.7% ahead of 2012, and 2014 is 5.2% greater than 2013 through
October. 2015 assumes an increase of 4.25% over this higher activity, to $15.98 million, assuming
4.25% growth in the base economy. The agricultural sector of our economy has experienced good
years in 2013 and 2014, which jump-started the growth; and construction sales tax is on the
upswing.
Of the 8.2% sales and use tax collected within the City, the City of Yakima receives only 0.85% (or
about 10.4% of the total) in general Sales Tax revenue. The General Government Funds receive the
full amount of the City's share of general sales tax revenues. (Note: the City also receives 0.3% sales
tax revenues which are restricted for transit purposes and a portion of the 0.4% sales tax revenues
which are restricted for criminal justice purposes. The State receives 6.5% and Yakima County
receives .15% of the remainder - refer to Exhibit II for more information.)
The following chart identifies Yakima s sales tax revenues as they relate to the total General Fund
operating revenues (excluding interfund transfer revenues). This revenue source is very sensitive
to economic conditions. As the graph below shows, sales tax receipts have trended downward over
the past 10 years as a percentage of total revenue in the General Fund, as other revenue sources
such as utility tax have generally kept up with inflation, and the City has been successful in
obtaining grants. The decrease in the 2009 through 2011 reflects the deceleration in the sales tax
growth rate, due to economic conditions. Although sales tax turned upward in 2012, the relative
percentage of sales tax to the total remained below pre -2008 levels because of the increase in the
City utility tax rate.
34%
32%
30% -
28%
r,
26% - '
24%
2005 2006 2007 2008
PERCENT OF SALES TAX
COMPARED TO OPERATING REVENUE
GENERAL FUND
6 - Section II • General Government Funds
' .J.
2009 2010 2011 2012 2013 2014
Criminal Justice Sales Tax
0.1% Sales Tax — A special 0.1% Criminal Justice Sales Tax was originally approved by the voters of
Yakima County in the November, 1992, General Election and became effective January 1, 1993. The
State allocates this 0.1% criminal justice sales tax revenue between the City and the County, based
on a predefined formula. This revenue is restricted to providing criminal justice related services
and is allocated based on operating vs. capital needs. This tax revenue is affected by the same
regional economic factors that affect the General Sales Tax revenue.
This tax is expected to generate $1,279,500 for the City in 2015 and is allocated in the City's budget
forecast as noted in the following chart.
0.1% CRIMINAL JUSTICE SALES TAX
Fund
General Fund
Law and Justice Capital
Total
2014 2015
2013 Year -End Projected
Actual Estimate Revenue
$1,065,356 $1,100,000 $1,149,500
86,823 120,000 130,000
$1,152,179 $1,220,000 $1,279,500
0.3% Sales Tax — Another special sales tax of 0.3% dedicated to Criminal Justice expenditures was
approved by the Yakima County voters in November, 2004, and took effect on April 1st of 2005.
The tax is on sales inside the County only and the proceeds are divided between the County and
Cities on a predefined formula under which the County receives 60% and all cities within the
County share the remaining 40%. Anticipated revenue is depicted in the table below. (Note:
Public Safety Communications and Law and Justice Capital Finds are not part of General
Government.) This tax is expected to generate $2,340,850 in 2015, and is allocated in accordance
with the following chart.
0.3% CRIMINAL JUSTICE SALES TAX
2014 2015
2013 Year -End Projected
Fund Actual Estimate Revenue
General Fund (for Criminal Justice Expenditures) $1,856,855 $1,955,000 $2,055,850
Public Safety Communications 186,266 175,000 170,000
Law and Justice Capital 90,699 110,000 115,000
Total $2,133,820 $2,240,000 $2,340,850
Exhibit III contains a summary of how these funds have been spent over the past 5 years.
General Government Funds • Section II — 7
PROPERTY TAX
➢ Property tax provides approximately 23.2% of all General Government revenue in the 2015
budget. The 2015 budget is based on a 1% increase in the property tax levy, as currently
allowed by state law, or approximately $172,000, plus an estimate of 1.5% or $235,000
increase for new construction for a total increase of $407,000 in General Government Funds
for a total, with Fire pension, of $17,543,890.
The 2015 request complies with the levy limit restrictions which cap property tax levy increases to
the maximum of 1% or the rate of inflation, whichever is less. (Note: state law defines the rate of
inflation as measured by the Implicit Price Deflator for consumer goods). State law also allows the
City to increase the levy by more than 1% if approved by the majority of voters.
As a point of clarification, the property tax levy restriction limits the change in the dollars levied
(1% would generate about $172,000 for 2015) - it does not limit growth in assessed value. The 1%
limit affects the total dollars levied, while assessed valuation is the mechanism used to allocate the
levy ratably among the property owners.
Since most consumer activity (i.e., wages, equipment, etc.) is more closely tied to the Consumer
Price Index (CPI), and CPI is greater than 1% in almost all years, the future effect of 1% or less
growth in Property Tax is restrictive to the City since Property Tax is one of General Government's
primary revenue sources. This restriction was recognized in the Five -Year Financial Plan, and is a
component in the projected deficits going forward. For sake of comparison, a 1% increase in just
the Yakima Police Patrolman's Association and the International Association of Firefighters
bargaining units combined amount to almost $243,000 in 2015.
The following chart and graph depict the 2015 budgeted allocation of the City's property tax
revenues.
2015 PROPOSED
GENERAL PROPERTY TAX LEVY - BY FUND
2014 2014 2015 2014 Est.
2013 Amended Year -End Projected vs. 2015
Actual Budget Estimated Revenue Budget
General $10,195,969 $11,178,000 $10,978,000 $11,254,600 2.5%
Parks &Recreation 1,920,107 1,689,000 1,865,490 1,911,290 2.5%
Street & Traffic 3,580,360 3,087,000 3,085,610 3,170,500 2.8%
Sub -Total General Government 15,696,435 15,954,000 15,929,100 16,336,390 2.6%
Fire Pension 1,196,702 1,186,000 1,186,000 1,207,500 1.8%
Total $16,893,138 $17,140,000 $17,115,100 $17,543,890 2.5%
8 - Section II • General Government Funds
2015 PROPOSED
GENERAL PROPERTY TAX LEVY — BY FUNCTION
Fire &Police
Pension
$2,427,400
13.8%
GeneralFund
$10,034,700
57.2%
Parks
$1,911,290
10.9%
Streets
$3,170,500
18.1%
Note: Property tax is allocated among the General Government funds based on each funds need to
balance to available resources.
UTILITY AND FRANCHISE TAXES
Utility and Franchise taxes are collectively the third largest category of General Government
revenues. They comprise 24.0% of 2015 projected General Government revenues and 24.2% of
projected 2015 General Fund Revenues.
➢ 2015 projection is $16,912,595 - $868,195 or 5.4% above the 2014 year-end estimate of
$16,044,400.
These revenues are largely a function of weather conditions and utility rates in the Valley. Electric
and Natural Gas utilities experienced rate increases in 2014, and have requested rate increases in
2015. Even without rate increases, the City Wastewater and Water utilities are expected to
experience growth tied to the large crops and related processing. The Refuse rate increase of about
7% is included in the preliminary budget, but will be removed for the final budget. The Franchise
and utility taxes combined are the only major revenue source keeping pace with the rate of
inflation, primarily because of rate increases implemented by utility providers.
The graphs below depict how the City of Yakima compares to other cities of somewhat similar
population relative to (a) sales tax, (b) property tax and (c) business & utility tax per capita.
General Government Funds • Section II — 9
These comparisons show that for all 3 of the major tax sources, Yakima is below the state average.
This data was compiled from the State Auditor's Local Government Comparative Statistics for 2013,
and includes comparisons of comparable Washington State cities with population between 50,000
and 135,000.
$450
$400
$350
$300
$250
$200
$150
$100
$50
$0
$450
$400
$350
$300
$250
$200
$150
$100
$50
$0
SALES & USE TAXES
Yakima's per capita sales taxis $270, which is $5 less
than the average city per capita of $275
$158
$175
$190
$216
$232
$252
$267
$270
$275
$392
$403
$471
Marysville Pasco Kent Richland Kennewick Auburn Renton Yakima Kirkland Redmond Everett Bellevue
Note: Only Yakima and Everett have a sales tax levied for Transit purposes.
PROPERTY TAXES
Yakima's per capita property tax is $186, which is $71 less $374
than the average citypercapitaof$257
$149
$109
$167
$186
$198
$246
$287 $293
$325
$340
$408
Pasco Kennewick Kent Yakima Auburn Marysville Bellevue Richland Kirkland Renton Everett Redmond
10 — Section II • General Government Funds
f
$450
$400
$350
$300
$250
$200
$150
$100
$50
$0 7
BUSINESS & UTILITY TAXES
Yakima's per c apita total Business and Utility Taxes are $180,
which is $34 less than the average city per c apita o f $214 $294
$250
$147
$92
$157
$177
$180
$184
$203
$224
$235
I I
$428
Marysville Pasco Kennewick Auburn Yakima Renton Richland Kirkland Kent Redmond Everett Bellevue
CHARGES FOR SERVICES
This revenue category consists of revenues from various parks and senior citizen programs, plan
checking fees and street and traffic engineering fees, etc. However, the largest component (more
than half), are fees paid by other City funds for General Fund services (legal, administration,
purchasing, utility billing, etc.).
➢ 2015 projection is $6,876,401. This is a 2.9% or $195,167 increase from the 2014 estimate.
This increase is tied primarily to cost of living increases along with strategic initiatives that
are increasing the base costs in the City Service charge, (such as Human Resource and City
Clerk positions.) Other changes are related to usage estimates, and with modest growth
assumptions.
STATE SHARED REVENUE
State shared revenues are the fifth largest category of revenues received for General Government
Operations.
➢ 2015 projection for all revenues within this category is $2,920,280; a decrease of $12,220 from
the 2014 year-end estimate of $2,932,500. The State Legislature eliminated the Liquor Excise
Tax for one fiscal year (2012-2013) in order to help balance the State's budget. This tax was
reinstated starting the 4th quarter of 2013, although not at the level it was originally funded.
With the State Legislature under pressure to adequately fund basic education, this category
is not expected to grow.
FINES AND FORFEITURES
These revenues come primarily from criminal fines and noncriminal penalties assessed in the City
of Yakima's Municipal Court, and parking violations. This revenue category is $1,645,110, an
increase of $35,000 for 2015. This is due primarily to the re -instatement of a Parking Enforcement
Officer in mid -2014 — parking tickets are estimated to increase about $35,000.
General Government Funds • Section II —11
OTHER TAXES
This category includes about $500,000 from Business Licenses and $900,000 Gambling Taxes. The
2014 projection is $1,429,000, up only 0.7% or $9,500 - virtually the same as the 2014 year-end
estimate.
OTHER REVENUES
The balance of revenues supporting the general government funds consists of other financing
sources and miscellaneous revenues, including interest earnings. For 2015, $1,108,778 is expected to
be generated in this category, an increase of $506,289 or 84.0% from the 2014 year end estimate of
$602,489, primarily because two Tiger Mart properties do not need extensive environmental clean-
up, and are expected to be sold in 2015, coupled with additional concession revenues that are
expected to accompany the new and expanded downtown events. Interest earnings on the
investment portfolio are expected to remain flat through 2015.
TRANSFERS FROM OTHER FUNDS
This represents the transfer of 3.5% of City owned utility taxes from General Fund into the Parks
and Recreation fund. The 2015 projection is $1,505,000, and is derived from utility tax estimates.
OTHER INTERGOVERNMENTAL
This category includes revenue received from other Government units other than the per capita
distributions from the State of Washington. The 2015 budget of $1,712,520 is up $213,143 or 14.2%
from the 2014 estimate largely due the newly awarded SAFER grant to support Firefighter salaries,
and a Department of Transportation Grant to support marketing of the Airport.
LICENSES AND PERMITS
The 2015 budget is $857,900, 2.3% or $19,050 more than the 2014 year-end estimate of $838,850.
Permit revenues are doing well in 2014, and this projection assumes a similar year of activity with
an adjustment for CPI.
REVENUE TRENDS - OVERVIEW
Total General Government revenue grew by about $2 million or 3.1% from 2012 to 2013. For 2014
the estimated revenue of $67.4 million shows a growth of $3.8 million or 6.1% -- mainly due to an
upturn in sales and utility taxes, the statutory property tax increase, and new revenue in the
General Fund (i.e. the Cable TV utility tax redirected from debt service; a move of the Electronics
function; a change in the City Service Charge computation and 6 months of the new SAFER grant),
Projected revenue for 2015 is $70.5 million, a $3.1 million or 4.6% increase - a continuation of
growth in sales and utility taxes and the statutory property tax increase, along with an anticipated
sale of property and new grants.
12 — Section II • General Government Funds
GENERAL GOVERNMENT RESOURCE COMPARISON - BY FUND
GENERAL GOVERNMENT
THREE YEAR RESOURCE COMPARISON (1)
2014 2015
2014 vs. 2015 vs.
2013 Year -End 2013 Projected 2014
Actual Estimated % Change Resources % Change
General Fund $54,006,731 $58,211,636 7.8% $61,061,259 4.9%
General Fund Beg Balance 9,128,882 8,374,076 (8.3%) 8,696,818 3.9%
Total General Fund 63,135,613 66,585,712 5.5% 69,758,077 4.8%
Parks &Recreation 4,383,049 4,519,614 3.1% 4,709,455 4.2%
Parks Beg Balance 582,492 556,239 (4.5%) 552,542 (0.7%)
Total Parks 4,965,541 5,075,853 2.2% 5,261,997 3.7%
Street & Traffic Fund Revenue
Street &Traffic Beg Balance
Total Street & Traffic
5,132,424 4,639,310 (9.6%) 4,718,610 1.7%
1,172,379 997,502 (14.9%) 666,733 (33.2%)
6,304,803 5,636,812 (10.6%) 5,385,343 (4.5%)
Total Revenue 63,522,204 67,370,560 6.1% 70,489,324 4.6%
Total Beg Balance 10,883,753 9,927,817 (8.8%) 9,916,093 (0.1%)
Total General Government $74,405,957 $77,298,377 3.9% $80,405,417 4.0%
(1) Resources include both annual revenues and beginning fund cash balances.
General Government Funds • Section II —13
GENERAL GOVERNMENT RESOURCES BY MAJOR CATEGORY
2014 2014 2015 2015
2012 2013 Amended Year -End Proposed % Change
Actual Actual Budget Estimate Expenditures f/ 2014 Est.
1 2 3 4 5 4-5
General Fund
Utility Tax $14,372,866 $14,662,629 $15,948,500 $15,986,900 $16,853,945 5.4%
Retail Sales and Use Tax 13,494,843 14,462,963 15,200,000 15,330,000 15,980,000 4.2%
Property Tax 9,935,939 10,195,969 11,178,000 10,978,000 11,254,600 2.5%
Charges for Service 4,676,966 4,965,671 5,806,614 5,530,469 5,658,126 2.3%
Criminal Justice Sales Tax 2,497,008 2,922,211 2,970,000 3,055,000 3,205,350 4.9%
IntergovernmentalRevenue 2,862,186 2,683,040 3,012,271 3,071,829 3,263,600 6.2%
Fines and Forfeitures 1,512,477 1,603,138 1,670,000 1,610,110 1,645,110 2.2%
Other Taxes 1,386,334 1,495,525 1,420,500 1,419,500 1,429,000 0.7%
Licenses and Permits 892,282 817,750 769,200 838,850 857,900 2.3%
Miscellaneous Revenue 350,633 141,191 357,478 333,478 854,978 156.4%
Franchise Fees 56,145 56,645 56,000 57,500 58,650 2.0%
Transfers From Other Funds 40,000 0 0 0 0 n/a
Total Revenue 52,077,679 54,006,731 58,388,563 58,211,636 61,061,259 4.9%
Beginning Fund Balance 8,440,130 9,128,882 8,374,076 8,374,076 8,696,818 3.9%
Total General Fund $60,517,809 $63,135,613 $66,762,639 $66,585,712 $69,758,077 4.8%
Parks & Recreation Fund
Property Tax $1,683,000 $1,920,107 $1,689,000 $1,865,490 $1,911,290 2.5%
Transfers From Other Funds 1,433,150 1,327,759 1,463,000 1,428,000 1,505,000 5.4%
Charges for Services 783,038 855,008 1,026,315 934,655 1,002,165 7.2%
Misc. Revenue/Non-Revenue 222,686 211,741 230,800 228,521 226,800 (0.8%)
Intergovernmental 81,847 68,435 61,100 62,948 64,200 2.0%
Other Financing Sources 7,168 0 0 0 0 n/a
Total Revenue 4,210,889 4,383,049 4,470,215 4,519,614 4,709,455 4.2%
Beginning Fund Balance 296,800 582,492 556,239 556,239 552,542 (0.7%)
Total Parks & Recreation Fund $4,507,689 $4,965,541 $5,026,454 $5,075,853 $5,261,997 3.7%
Street and Traffic Operations Fund
Property Tax $3,716,000 $3,580,360 $3,087,000 $3,085,610 $3,170,500 2.8%
Fuel Tax - Street 1,275,733 1,301,827 1,297,100 1,297,100 1,305,000 0.6%
Charges for Services 204,899 213,431 215,760 216,110 216,110 0.0%
Miscellaneous Revenue 30,934 29,578 29,000 32,965 19,500 (40.8%)
Other Financing Sources 24,738 6,991 2,000 7,025 7,000 (0.4%)
Other Intergovernmental 603 0 500 500 500 0.0%
County Road Tax/Annexations 463 235 0 0 0 n/a
Transfers From Other Funds 38,308 0 0 0 0 n/a
Total Revenue 5,291,678 5,132,424 4,631,360 4,639,310 4,718,610 1.7%
Beginning Fund Balance 1,211,290 1,172,379 997,502 997,502 666,733 (33.2%)
Total Street & Traffic Ops. Fund $6,502,968 $6,304,803 $5,628,862 $5,636,812 $5,385,343 (4.5%)
Total General Government $71,528,467 $74,405,957 $77,417,955 $77,298,377 $80,405,417 4.0%
Total Revenue $61,580,247 $63,522,204 $67,490,138 $67,370,560 $70,489,324 4.6%
Total Beginning Fund Balance 9,948,220 10,883,753 9,927,817 9,927,817 9,916,093 (0.1%)
Total Resources $71,528,467 $74,405,957 $77,417,955 $77,298,377 $80,405,417 4.0%
14 - Section II • General Government Funds
GENERAL GOVERNMENT FUNDS: EXPENDITURE TRENDS
Criminal justice costs continue to consume an ever increasing share of total General Fund resources.
In order to pay these costs other General Fund programs are necessarily limited/reduced to remain
within available resources. See Exhibit III for more information. The following charts depict the
major effect on the General Fund of the increase in criminal justice costs compared to all other cost
increases from 2006 to 2015
PERCENTAGE INCREASE OF CRIMINAL JUSTICE COSTS
VS. OTHER GENERAL GOVERNMENT FUNCTIONS AND CPI
2005 BUDGET TO 2015 BUDGET
Criminal Justice
Other
Consumer Price
Index
$10,258,114 59.3%
$3,089,899 + 26.8%
24.2%
Cumulatively, over the past ten years Criminal Justice budgets have increased 59.3%. By
comparison, all other General Government expenses have increased by only 26.8%. During this
same ten-year period the Seattle -Tacoma Consumer Price Index increased by 24.2%. Criminal
justice cost increases are more than double what increases are for other cost categories. When the
increase in population and boundaries are considered over this same time frame, the fact that other
services are still below the rate of inflation demonstrates a real reduction in service/costs per capita.
CRIMINAL JUSTICE FUNDING
With the flattening of revenues, funding available for criminal justice needs is insufficient to offset
increases in Criminal Justice costs. (The following chart depicts the growth in Law and Justice
operations costs for 2013, 2014 estimate and 2015 budget). With the increase in staffing levels, the
indigent defense case rules going into effect, and costs associated with moving the Public Safety
Communications Center, this category of expense increased by $1,545,145 from 2014 to 2015.
General Government Funds • Section II —15
CRIMINAL JUSTICE EXPENDITURES
THREE YEAR COMPARISON
2014 2015 % Change
2013 Year -End Proposed 2015 from
Description Actual Estimate Expenditures 2014
Police Operations & Administration $22,682,802 $22,715,922 $23,493,338 3.4%
Outside/Inside Jail Costs 3,867,073 3,510,933 3,540,255 0.8%
District Court/Municipal Court & Probation 1,330,831 1,333,646 1,370,533 2.8%
Prosecution Costs/Indigent Defense 1,554,425 1,763,722 2,241,579 27.1%
Other Re late d Expense s
Police Pension 1,344,773 1,174,237 1,219,900 3.9%
Emergency Dispatch Transfer 410,000 305,000 465,000 52.5%
Transfer-Law&Justice Capital (1) 177,000 190,000 208,000 9.5%
Sub -total 1,931,773 1,669,237 1,892,900 13.4%
Grand Total $31,366,904 $30,993,460 $32,538,605 5.0%
(1) Utility Tax transfer from General Fund.
In the 2 years from 2013 to 2015, criminal justice expenditures are estimated to increase by $1.17
million or 3.7%, keeping in line with the City Council's strategic priority to improve Public Safety.
In reviewing the following chart and graph, it should be noted that it includes only General Fund
expenditures on criminal justice. Another $0.5 million is budgeted in the "Police Grants" special
revenue fund, which includes a portion of Police and Legal staff working with the DEA on drug
enforcement. The Law and Justice Capital Fund includes a budget of $0.6 million. The Criminal
Justice Expenditures as a Percentage of Total General Fund chart below demonstrates that over half
of General Fund's budget is dedicated to criminal justice. Note: The large jump in the percentage
in 2007 was the result of Council's adoption of the Safe Community Action Plan, which allocated a
one-time gain in the property tax levy as a result of the library annexation of about $650,000 to fund
additional Police officers in a dedicated proactive anticrime unit. This ratio keeps spreading as
Criminal Justice has received increased allocations of resources to address the gang issues facing
the City. In 2012, Council approved an increase of 6.0% in the tax rate for city owned utilities
(Wastewater, Water, Refuse and Stormwater) which added about $2.2 million in 2013 growing to
about $2.4 million in 2014. This additional tax was earmarked to save 6 police officer positions
from elimination and add 6 more officers, along with other public safety related programs. The
2013 budget included a phased proposal to expand the gang unit by 2 officers, and to add an officer
to participate in the Violent Offenders Task Force. Also affecting the 2013 budget is the
Washington Supreme Court decision setting new rules for indigent defense. This one mandate
added $0.2 million in 2013 and is expected to add almost $0.5 million annually by the end of 2015 -
the first year of full implementation. 2014 saw the addition of one Lieutenant partially funded by
the Yakima School District's School Resource Officer program, and the take-home car program. In
2015, additional staff includes 2 Police Officers to participate with Federal Task Forces, and a Police
Public Information Officer. The pending move of the Public Safety Communications office was also
added in 2015.
16 - Section II • General Government Funds
CRIMINAL JUSTICE EXPENDITURES AS A PERCENTAGE OF TOTAL GENERAL FUND
60.0%
56.0%
52.0%
48.0%
44.0%
40.0% I I I I I I I I I
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Actual Actual Actual Actual Actual Actual Actual YE Est. Budget Budget
Criminal Justice All Other
Even though Criminal Justice costs continued to rise, the chart shows a reduction of the spread
between Criminal Justice Expenditures and other expenditures in 2014, because this was the first
year implementation of the City Charter amendment to spend $2 million annually on street
improvements.
PERCENT OF PER CAPITA TOTAL REVENUE SPENT ON CRIMINAL JUSTICE IN 2013
Comparable Cities between 50,000 and 135,000 in Population
25.0%
20.0% •
15.0% •
10.0% •
5.0%
0.0%
Yakima' s total revenue spent oncriminaljustice is
20.6% which is 5.1% more thanthe average
percentage of 15.5%
9.2%
8.3%
11.6%
13.9%
14.8%
15.0%
15.8%
16.6%
18.5%
20.6%
18.9%
22.5%
Richland Pasco Redmond Renton Kirkland Marysville Bellevue Everett Kent Aubum Yakima Kennewick
Data compiled from the State Auditor's Local Government Comparative Statistics.
General Government Funds • Section II -17
The following chart depicts General government staffing levels per 1,000 population.
GENERAL GOVERNMENT BUDGETED POSITIONS COMPARISONS (1)
FOR THE LAST TEN YEARS
6.2 - 5.9 6.0 5.9
6.0 - 5.8 5.8
5.8 -
5.6 - 5.4
5.4 - 5.2 5.1 5.1 5.2
5.2 -
5.0 -
4.8 -
4.6 1:
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Number of Employee 471.1 476.7 497.3 502.8 501.6 489.6 475.1 473.2 471.2 484.8
Employees Per Capita 5.8 5.8 5.9 6.0 5.9 5.4 5.2 5.1 5.1 5.2
Square Miles 25.3 25.9 25.9 27.6 28.7 28.7 28.7 28.7 28.7 28.7
Population 81,470 82,867 83,646 83,731 84,850 91,067 91,630 91,930 92,620 93,080
(1) Does not include temporary employees (numbers of employees are stated in full-time equivalents).
The following major events that have had significant effect on General Government staffing levels:
➢ City population has increased 11,610 from 2005 to 2014, or 14.25%
➢ In 2007, 9 positions were added in the Police Department as part of the Safe Community
Action Plan (SCAP), paid for by the increase in property tax realized when the City annexed
to the Rural Library District, 4 positions were added because of Public Safety grants, and 7
were added for 2 annexation areas.
➢ In 2010, 7 Police Officers were added, funded by a COPS hiring grant, and 2 positions were
added for the purchasing consolidation with Yakima County.
➢ In 2012, 6 Police Officers were added, funded by an increase in the City -owned utilities.
It should be noted that a net of 13.7 new FTE positions have been added since 2005, or 2.9% over the
past 10 years; compared to the 14.25% increase in population during the same time period. Most of
these additions were either in response to criminal justice issues, annexations, or both.
This comparison also highlights the large reductions necessitated by the economic downturn
starting in 2009 and continuing into 2013. Since 2009, staffing levels have been reduced, which
dropped the ratio to 5.1 employees per 1,000 population in 2012 and 2013 - the lowest rate in well
over two decades.
18 - Section II • General Government Funds
GENERAL GOVERNMENT EXPENDITURE SUMMARY
The following chart illustrates that the total 2015 General Government budget is $70,501,047,
$1,588,520or 2.3% more than the 2014 amended budget of $68,912,527.
2014 - 2015 GENERAL GOVERNMENT BUDGET
2014 2014 2015
Amended Year -End Proposed 2015 vs. 2014
Budget Estimate Expenditures Dollars Percent
General $59,534,570 $58,966,443 $60,738,516 $1,203,946 2.0%
Parks &Recreation 4,556,548 4,545,867 4,713,152 156,604 3.4%
Street &Traffic Operations 4,821,409 4,814,188 5,049,379 227,969 4.7%
Total General Government $68,912,527 $68,326,497 $70,501,047 $1,588,520 2.3%
General Government Funds • Section II -19
20 — Section II • General Government Funds
OTHER FUNDS
2014 year-end estimates for the City's Other Operating and Enterprise Funds are summarized below:
BUDGET STATUS
2014 2014 2014 2014
Amended Year -End Estimated Estimated
Budget Estimate Variance Resources End Balance
Economic Development $456,622 $456,622 (0) $511,488 $54,866
Neighborhood Dev. (Housing) 3,120,096 3,109,287 10,809 3,794,453 685,166
Community Relations 601,850 589,455 12,395 1,136,833 547,378
Cemetery 278,900 269,920 8,980 319,210 49,290
Emergency Services 1,339,282 1,309,446 29,837 1,493,214 183,769
Public Safety Communications 3,219,521 2,943,359 276,162 3,697,596 754,237
Police Grants 469,024 435,624 33,400 742,642 307,018
Downtown Improvement District 244,358 232,750 11,608 238,020 5,270
Trolley (Yakima Interurban Lines) 166,850 116,501 50,349 142,605 26,104
Front Street Business Improvement 9,000 5,000 4,000 9,410 4,410
Tourist Promotion 1,483,667 1,483,667 0 2,027,822 544,155
Capitol Theatre 342,020 342,020 0 368,408 26,388
Public Facilities Dist Rev Cony Ctr 645,000 640,000 5,000 1,047,215 407,215
Tourist Promotion Area 687,000 650,000 37,000 723,324 73,324
Public Facilities Dist Rev Cap Theatre 531,000 563,430 (32,430) 699,122 135,692
Airport Operating 1,130,293 1,083,863 46,430 1,085,742 1,879
Stormwater Operating 2,325,519 2,315,822 9,698 3,615,183 1,299,361
Transit 8,240,033 7,989,823 250,209 9,269,988 1,280,165
Refuse 5,864,823 5,846,975 17,848 6,134,525 287,550
Wastewater 20,363,432 20,282,066 81,366 23,279,210 2,997,144
Water 9,022,649 8,909,509 113,140 11,775,470 2,865,961
Irrigation 2,063,884 1,828,565 235,319 2,705,288 876,723
Equipment Rental 5,671,800 5,330,898 340,902 9,744,421 4,413,523
Environmental 192,950 192,681 269 674,232 481,551
Public Works Admin. 1,243,866 1,227,371 16,495 1,630,198 402,827
$69,713,439 $68,154,653 $1,558,786 $86,865,619 $18,710,966
All Operating and Enterprise Funds are anticipated to end 2014 with positive fund balances. This
analysis includes appropriations approved by Council through October. Due to an oversight in the
Public Facilities District Capitol Theatre Fund, an increase intended for 2015 projected expenditures
were included with the Preliminary Year End Estimate for 2014 and is therefore more than
authorized in the Amended 2014 Budget. The 2014 transfer out will be reduced, and the 2015
transfer out will be increased in the same amount for the Final Budget bringing the 2014 Estimated
Expenditures to $531,000 and the 2014 Estimated Ending Balance to $168,122, although there will
ultimately not be a change to the 2015 Ending Balance.
Other Funds • Section III -1
2015 projections for Other Operating and Enterprise Funds expenditures and resources are reflected
in the following chart. (Resources include the beginning fund balance plus current year revenue, to
arrive at a total available to spend.)
PROPOSED 2015 BUDGET
Fund
2015 2015 2015
Projected Projected Projected
Resources Expense Balance
Economic Development $276,866 $235,766 $41,099
Neighborhood Development (Housing) 2,159,503 1,479,188 680,315
Community Relations 1,143,978 612,510 531,467
Cemetery 314,240 292,795 21,446
Emergency Services 1,473,795 1,312,692 161,102
Public Safety Communications 4,850,036 4,438,988 411,048
Police Grants 791,018 475,296 315,723
Downtown Improvement District 203,110 197,500 5,610
Trolley 79,728 57,046 22,682
Front Street Business Improvement Area 8,145 7,000 1,145
Tourist Promotion 2,237,405 1,628,854 608,551
Capitol Theatre 421,638 396,540 25,097
Public Facilities Dist Rev Cony Ctr 1,223,965 748,220 475,745
Tourist Promotion Area 760,324 687,000 73,324
Public Facilities Dist Capitol Theatre 754,392 608,220 146,172
Airport Operating 1,110,768 1,099,571 11,198
Stormwater Operating 3,450,361 3,444,953 5,409
Transit 9,799,391 8,581,402 1,217,988
Refuse 6,508,149 6,114,871 393,278
Wastewater 24,428,446 20,893,684 3,534,763
Water 11,741,961 9,359,410 2,382,552
Irrigation 2,642,923 1,791,819 851,104
Equipment Rental 10,026,381 5,411,876 4,614,505
Environmental 1,491,551 1,007,950 483,601
Public Works Administration 1,518,265 1,160,784 357,481
Total Other Operating and Enterprise Funds $89,416,339 $72,043,937 $17,372,405
As mentioned in the note following the 2014 Budget Status chart, the Public Facilities District
Capitol Theatre Fund included some 2015 expenditures erroneously in the 2014 Estimate. The Final
Budget as corrected will show 2015 Resources of $786,866, Expenditures of $640,650 and a Projected
Fund Balance at the end of 2015 of $146,172.
See Exhibit I for additional detail of Other Operating and Enterprise Funds, including a 3 -year
history of expenses, and a fund balance analysis, including the estimated beginning and ending
fund balances, and projected revenue.
The 2015 Operating and Reserve Funds chart at the end of Section I depicts a summary of resources and
expenditures for major operating and Utility fund operations for 2015, including contingency, operating
2 - Section III • Other Funds
reserve funds and employee benefit funds. Although Equipment Rental is included on the table, it is
split into an operating component and capital component for charting operating vs. capital budgets.
OPERATING FUNDS
For more information on strategic initiatives that affect these funds see the Strategic Initiatives
section.
The Economic Development Fund
This fund reflects resources of $276,866 and expenditures of $235,766 for 2015. These funds are planned
to be used to spur economic development. Expenditures include an allocation of the Code Enforcement
program that is eligible to be funded by the Community Development Block Grant (CDBG)
($121,633); the continuation of Federal legislative funding efforts ($72,000); and the City's partnership
with New Vision ($33,000).
The Community Development Fund (Office of Neighborhood Development Services - ONDS)
This fund contains programs funded by Housing and Urban Development (HUD), including the
Community Development Block Grant (CDBG) and Home ownership (HOME) grants.
Expenditures are budgeted at $1,479,188 and are subject to the public hearing process. After
reductions in Budget allocations at the Federal level in both 2013 and 2014, the 2015 allocation may
begin to stabilize. However, the recent drops have necessitated a Reduction of Force of one
position (see the related Strategic Initiative). Because of the programmatic nature of the
Community Development budget, along with differences in reporting time frame for Federal
programs, the City budget is annually adjusted to reflect the final outcome of prior year programs.
The 2015 ending balance is projected to be $680,315.
The Community Relations Fund
The Community Relations fund expects resources of $1,143,978 for 2015. Expenditures are
estimated to be $612,510, leaving the balance estimated at $531,467 for year-end, earmarked
primarily for capital expenditure on production equipment/cable TV facilities.
Cemetery Fund
Resources within this fund for 2015 are projected at $314,240. Expenditures are estimated to be
$292,795, and the estimated ending balance is projected at $21,446. The Cemetery Fund depends on
$132,000 as an operational subsidy from the Parks and Recreation Fund, which remains unchanged
from last year. Operational revenue continues to lag behind costs. Parks management continues to
monitor this situation.
The Emergency Services Fund
Resources in this fund reflect revenues of $1,473,795 and expenditures of $1,312,692 related to the
provision of Emergency Medical Services, and are supported by an allocation of the county -wide
special EMS Property Tax Levy. The 2015 ending balance is projected to be $161,102.
The Public Safety Communications Fund
This fund expects resources of $4,850,036 and expenditures of $4,438,988 for 2015, leaving a balance
of $411,048 at year-end. This fund accounts for 9-1-1 Call takers, supported by Yakima County 9-1-
1 resources in the amount of $1,815,764. A move of the Communications center to a new County
location is included in the Strategic Initiatives for 2015, and accounts for an increase of about $1.2
Other Funds • Section III — 3
million over the 2014 budget. An interfund loan of $720,000 to cover part of the City's portion of
the cost is part of this coming year's budget. Ongoing lease payments and transfers for debt service
will be paid to the County beginning in late 2015. General Fund expenditures include a transfer of
$930,000 for dispatch, including the new debt service and operating costs related to the move.
These costs are included in the 2015 budget and the City's Five Year Financial Plan.
Police Grants
This fund accounts for the Federal / State forfeited narcotics and related prosecution expenditures.
The COPS Hiring Recovery Program (CHRP) was formerly accounted for in this fund. The three
year program grant was completed in 2013. The seven police officer positions funded by the grant
are now part of the General Fund. Resources for the Police Grants fund are estimated to be $791,018
and expenditures are budgeted at $475,296, leaving an ending balance of $315,723 for 2015.
Downtown Yakima Business Improvement District (DYBID) Fund
Resources in this fund are projected to be $203,110, while expenditures are projected at $197,500.
The ending balance for 2015 is projected at $5,610. Much of the 2015 budget is targeted toward
maintaining the recent downtown revitalization efforts.
The Trolley Fund
This fund projects resources of $79,728 and expenditures of $57,046 for a minimal maintenance and
improvement program in 2015. A General Fund contribution of $100,000 was made in 2014 for
building improvements that may continue into 2015. The 2015 year-end balance is projected at
$22,682.
The Front Street Business Improvement Area Fund
This fund projects resources of $8,145 and expenditures of $7,000 - leaving an ending balance of
$1,145 for 2015.
The Tourism Promotion/Yakima Convention Center Fund
This fund's budget anticipates resources of $2,237,405 (this includes a transfer of $145,000 from the
Public Facility District) and expenditures of $1,628,854, and thus is expected to end 2015 with a
balance of $608,551. The budget includes an increase the Center's management fee from $708,200 to
$721,200, or $13,000, and an increase in the Sports Commission fee from $57,000 to $65,000, or
$8,000. (See strategic initiative section). The Tourism Promotion section of this budget also contains
the new allocation of Hotel/Motel Tax of $100,000 to Central Washington State Fair Park to support
SunDome operations. Note: the Lodging Tax Advisory Committee only approved an allocation of
$75,000—the final budget will reflect this change.
The Capitol Theatre Fund
This fund is expected to have resources of $421,638 and expenditures of $396,540, leaving an
estimated ending balance of $25,097. This includes a $50,000 increase to the Capitol Theatre
Committee management fee for 2015, from $232,000 to $282,000, primarily to provide adequate
support through the transition of Executive Director. (See strategic initiative section).
The Public Facilities District - Convention Center Fund
This fund includes resources estimated to be $1,223,965 for 2015. Expenditures are estimated to be
$748,220. Of this amount $462,220 is for debt service on the Convention Center bonds issued in
4 - Section III • Other Funds
2002 and $145,000 is for supplemental support of Convention Center operations, while $110,000 is
for the Convention Center Capital Fund. This leaves a fund balance of $475,745 at the end of 2015.
The Tourist Promotion Area
This fund accounts for a self-assessment imposed by the lodging industry to promote tourism.
Resources are estimated to be $760,324, with expenditures programmed at $687,000, leaving a
balance at the end of 2015 of $73,324.
The Public Facilities District - Capitol Theatre
This fund includes resources estimated to be $754,392 ($786,822 final) for 2015. Expenditures are
estimated to be $608,220 ($640,650 final). Of this amount $464,410 is designated for debt service on
the Capitol Expansion bonds issued in 2009 and $112,000 for supplemental support for Capitol
Theatre operations. It should be noted that beginning in 2013 the Federal Government reduced the
amount it provided for the Build America Bond program, so the City's contribution to debt service
increased by almost $10,000. This leaves a fund balance of $146,172 at the end of 2015.
Airport Operating Fund
This fund was created in 2013 to account for operations at the Yakima Air Terminal, after the joint
venture with Yakima County was dissolved. Resources are estimated to be $1,110,768, with
expenditures programmed at $1,099,571, leaving a balance at the end of 2015 of $11,198 Marketing
efforts partnered with regional airlines as well as grant applications have been implemented to
increase air travel to and from Yakima. The purchase of two maintenance trucks and
improvements to 21st Avenue on Airport property are planned for this year. (See the Strategic
Initiatives in Section IV) It should be noted that the ending balance is significantly below acceptable
minimum levels, however, there had been deferred maintenance of the terminal and operating
equipment such that it is imperative that some investments be made.
Stormwater Operating Fund
Expenditures in this fund are estimated to be $3,444,953 and resources are projected to be $3,450,361 for
2015. The budget is developed with the annual current rate of $43 per equivalent residential unit which
is unchanged from 2014. An increase of 55% has been proposed to meet ongoing regulatory
requirements, however, that increase is being postponed until 2016. An ending balance of $5,409 is
currently projected for 2015. The expenditure budget includes a $200,000 transfer to the streets fund to
support the street sweeping program, $50,000 to the General Fund for code compliance support relating
to stormwater drainage systems, and $1,300,000 to the capital fund to support time -sensitive capital
investments, such as North 1St Street. This fund balance is also well below minimum requirements, as
the capital projects are not recommended to be postponed. This should be remedied when the rate
increase is ultimately made in 2016.
Transit Fund
Expenditures in this fund are estimated to be $8,581,402 and resources are projected to be $9,799,391
for 2015. Total Transit sales taxes for the year are forecast to be $5,577,000 estimating the same
growth rate of 4.25% used for General Fund -- $4,468,000 is allocated to operations and $1,109,000 to
capital. This fund also includes an operating grant of $2,200,000. The operating budget includes a
full year of the new Ellensburg Route contract. An ending balance of $1,217,988 is currently
projected for 2015.
Other Funds • Section III - 5
Refuse Fund
Total resources in this fund for the year are $6,508,149. Total expenditures are estimated to be
$6,114,871, and an ending balance is currently projected at $393,278. Revenues include a rate
structure change that was presented to City Council on October 28, 2014, estimated to add $386,000.
Should Council choose not to approve the rate adjustment, operational changes would be
necessary, since the fund balance is not adequate to absorb the reduction in revenue. A recycling
pilot program was completed in 2014 at a cost of $85,425. The pilot program was successful, and
may be expanded in coming years to help prolong the use of the existing landfill, however, it would
also need adequate reserves to invest in the needed equipment (i.e. carts and trucks) to accomplish
the program. See the Strategic Initiative in Section IV for a more complete discussion.
Wastewater Fund
Resources for this fund are expected to total $24,428,446. Expenditures are budgeted at $20,893,684
and the 2015 year-end balance is currently projected to be $3,534,763. Transfers of about $2.7
million to Wastewater Construction funds and $2.6 million to provide for Wastewater Bond
redemption and repayments of Public Works Trust Fund Loans are proposed in this budget. The
proposed 2015 Sewer budget includes continued implementation of the Sewer Comprehensive Plan
and the Wastewater Facilities Plan.
Water Fund
Resources of $11,741,961 are projected for the year in this fund. Expenditures are estimated to be
$9,359,410 leaving $2,382,552 at the end of 2015. These costs include $750,000 transfer to the Capital
Fund, and about $1,125,000 to provide for Water Bond Debt Service, and repayments of Water
Public Works Trust Fund Loans.
Irrigation Fund
Resources for 2015 are projected to be $2,642,923 in this fund, and expenditures are estimated to be
$1,791,819, including a transfer of $190,000 to the capital fund. The ending fund balance is
projected to be $851,104.
The Equipment Rental Fund
The budget for this fund in 2015 is $5,411,876 of which $3.7 million is the maintenance and
operations budget, and $1.7 million is the Equipment Replacement budget. Resources are expected
to be $10,026,381 while the ending fund balance for 2015 is expected to be $4,614,505, most of which
represents capital equipment replacement reserves. The operations budget includes 2 additional
Mechanic I positions to keep up with the workload, and the capital portion of the fund has about
$1.5 million in new and replacement vehicles. See the related Strategic Initiatives in Section IV for
the list of rolling stock purchases.
The Environmental Fund
This fund was created to provide for cleanup of environmental hazards. Funding for the program
is from a surcharge on vehicle fuel sales in the Equipment Rental Fund. For 2015, $1,491,551 in
resources is expected to be available, with an expenditure budget of $1,007,950, including $860,000
for the cleanup of the former Tiger Oil properties, to be funded by a Department of Ecology grant
of $500,000 and the escrow account that came with the property of $360,000 that can be used to
match the grant. This budget typically includes a contingency of $150,000 for environmental
emergencies. A year-end balance of $483,601 is projected.
6 — Section III • Other Funds
Public Works Administration Fund
Expenditures for 2015 are expected to be $1,160,784 for this fund. Resources for 2015 are expected
to be $1,518,265 generated from operating funds located in the Public Works complex, resulting in a
year-end balance of $357,481.
RESERVE FUNDS - EMPLOYEE BENEFIT RESERVES
The Unemployment Compensation Reserve Fund
This self-insured fund is estimated to end 2015 with a balance of $270,238. Resources are projected
to be $593,415 and expenditures for claims and other related expenses are estimated at $323,177,
which includes a contingency, as the 2014 year end estimate is only $192,308. Rates are unchanged
for 2015.
Employees Health Benefit Reserve Fund
Expenditures in this fund for 2014 are projected to be $9,745,849, while resources are $12,307,222 ,
leaving an ending balance projected to be $2,561,373, which just slightly exceeds the State's
minimum reserve and contingency requirements. The City is self-insured for its medical/dental
program which means that we pay the direct costs of the plan. The original rate calculation based
on an 18 month rolling average of claims history ending in June 2014 resulted in a proposed
premium increase of 10% for employee only and 48% for dependent units. This premium structure
would have added about $2 million to the total premium (about $1.6 million City and $0.4 million
employees). The insurance broker was tasked with bringing plan changes that could substantially
reduce plan costs and the proposed premium. The primary recommendation is to enact a Reference
Based Reimbursement program that limits hospital charges to the higher of Medicare plus or cost
plus. The broker looked at our prior year claims, and if they would have been paid this new way,
the plan would have saved $1.4 million. They also recommended that we contract for a health
advocacy service that will help steer patients to the most cost effective facility for treatment. These
new programs combined with savings produced by having our own medical clinic all combined to
produce this estimated reduction in expenditures and the resulting reduction in base rates to add
only 4% in 2015. The insurance board continues to monitor the plan and review potential cost
containment measures, with a goal of reducing the magnitude of future annual premium increases.
The Workers Compensation Reserve Fund
This fund is estimating a year-end balance of $612,840, the result of resources totaling $1,853,971
and expenditures of $1,241,131. Ongoing efforts in claim management and safety training are in
place to slowdown the number of claims/costs. Rates are unchanged for 2015.
Wellness/Employee Assistance Program (EAP) Fund
Projected total resources for 2015 are $353,629 in this fund, and expenditures are $174,800 with a
projected year-end balance of $178,829. This fund includes maintenance of the exercise facilities,
wellness initiatives, and the Employee Assistance Program; and is funded by unused medical
premiums for vacant positions.
Other Funds • Section III - 7
The Firemen's Relief and Pension Fund
This fund is projecting resources of $2,230,803 and expenditures of $1,380,282, leaving an estimated
2014 year-end balance of $850,521. The Fire Pension property tax allocation for 2015 of $1,207,500 is
slightly above the 2014 estimate of $1,186,000. The City is mandated to allocate property tax to
fund pension and LEOFF I medical and long-term care requirements.
OPERATING RESERVES
Risk Management Reserve
For 2015, based on personnel costs, claims experience and other insurance/professional services
costs, on-going expenditures are estimated to be $3,643,761. Departmental contributions to the Risk
Management Fund total $3,490,000, an increase of 10% for most operating divisions. The increase
helps pay for liability and other insurance coverage and increased claims costs, and to meet reserve
requirements. These charges, along with interest earnings of $100,000 and estimated recoveries
combine for projected 2015 revenues of $3,684,000 for normal operations.
In addition to on-going operations, the 2015 revenues and expenditures include $84,000 for
anticipated possible mitigation of contamination from the former City landfill at the Cascade Mill
site. At this time, mitigation expenses are anticipated to be reimbursed by corresponding insurance
recovery revenue.
Therefore, total resources and expenditures of the Risk Management Reserve Fund for 2015 are
expected to be $4,318,139 and $3,643,761 respectively. The year-end 2015 reserve balance is estimated
to be $674,378. These reserve levels are considered marginal in comparison to the existing liability for
incurred claims. The expenditures include an estimate of the City's attorney fees relating to the Voting
Rights Act case, but not any settlement costs (i.e. reimbursed legal fees). Depending on the amount and
timing of the award, a funding plan will be developed. The reserve balance in this fund will continue to
be monitored for adequacy.
Capitol Theatre Reserve
The Capitol Theatre Reserve projects no revenues for 2015. The annual transfer of $71,927 to the
Capitol Theatre was changed from the Operating Fund to the Construction fund for both the balance of
2013 and 2014, going into 2015 so much needed safety/ADA improvements could be made. The
projected 2015 ending balance is $36,641 which will be totally depleted after 1 more year. The City is
pursuing funding alternatives for capital improvements with the Capitol Theatre Committee.
General Fund Cash Flow Reserve
General Fund cash flow reserves for 2015 are estimated at $8,696,818. This source is a contingency
for Council policy changes, results of negotiations for unsettled bargaining units, other unknown
expenses and potential revenue shortfalls.
In summation, the City's 2015 General Reserve position is estimated to be as shown in the following
chart.
8 — Section III • Other Funds
2015 GENERAL RESERVE POSITION
2013 2014 2015
Actual Estimated Estimated
Fund Balance End Balance End Balance
General Fund Cash Flow $9,128,882 $8,374,076 $8,696,818
Capitol Theatre Reserve 180,495 108,568 36,641
Risk Management Reserve 839,065 634,139 674,378
Total $10,148,442 $9,116,783 $9,407,837
The slow economic recovery has continued to put pressure on the general reserves of the City.
Because these reserves are at minimum levels, they will be scrutinized for negative trends and
adequacy as the City moves forward.
Exhibit I contains additional detail of funds categorized as Contingency/Operating and Employee
Benefit Reserves.
CAPITAL IMPROVEMENT FUNDS
For 2014, a number of capital improvements were programmed for an amended capital budget of
$69.0 million. However, capital improvement expenditures for 2014 were estimated to be $48.6
million, a spending level approximately $20.4 million below budgeted levels. These projects are
rebudgeted in 2015 along with additional capital improvements. The Airport Taxiway
reconstruction project makes up about half of the amount to be rebudgeted. Other projects include
the Yakima Sawmill Redevelopment Area, and Speedway/Race Street Wastewater piping. (See
Exhibit I for a summary of the status of the capital funds.)
The 2015 Capital and Debt Service Funds chart at the end of Section I depicts a summary of the
relationship of resources and expenditures for major capital budgets of the City, including debt
service and the capital portion of the Equipment Rental Fund.
For 2015, Capital Fund expenditures of $39,023,263 are estimated as follows, inclusive of carryover
projects from 2014.
Street/Other Capital Improvement Projects Funded by REET
Total projects of $5,927,005 million (including carryover projects and Debt Service).
➢ Lincoln Corridor Study (Federal Grant, carryover from 2014) - $315,000
➢ Railroad Grade Separation (Artwork and Sidewalk improvements) - $645,000
➢ North 1St St. Revitalization Phase I (Federal Grant, carryover from 2014) - $20,000
➢ North 1St St. Revitalization Phase II (cash balance from Underpass projects) - $1,300,000
➢ 64th and Tieton Signal (funded by gas tax and developer capital contribution) - $943,600
➢ Extend 21st Avenue to provide vehicle access to the south airfield -- $175,000
➢ Design for Nob Hill and Fair Avenue Intersection -- $24,900
➢ Other Debt Service/Transfers - $1,223,205
Other Funds • Section III - 9
➢ Other miscellaneous projects — $1,280,300. These projects include:
• Project Contingency (for project over runs or emergency repairs) — $305,000
• City Hall Improvements — $440,000
• Traffic Calming Project - $20,000
• Bridge Inspections — $5,000
• Other Street Maintenance Services — $350,000
Arterial Street Gas tax and the Real Estate Excise Taxes are the primary local revenue sources for
street projects. These revenues are used to match state and federal grants when possible to
maximize funding for projects.
Irrigation Improvement Fund
Total 2015 projects — $1,250,000 and Debt Service - $317,742, for a total of $1,567,742.
➢ Fruitvale Canal Diversion System (carryover) — $500,000
➢ West Yakima Avenue (18th to 28th, carryover) — $725,000
➢ Main and Pump Refurbish (carryover) — $25,000
Domestic Water Improvement Fund
Total 2015 projects — $2,500,000.
➢ Modifications to River at WTP Intake (carryover) — $1,000,000
➢ Water Main Replacement (N. 1st St) — $1,400,000
➢ Other water capital projects — $100,000 (Note: This should be $270,000—the final budget will
be adjusted)
Fire Capital Fund
Total 2015 projects — $2,254,159.
➢ 2 Fire Apparatus and other vehicles — $1,854,000
➢ Miscellaneous equipment, supplies and major maintenance — $330,200
➢ Debt service (LOCAL, State bond participation program) — $69,959
Wastewater Capital Expenditures
Facility projects and other sewer improvements, including sewer line extension rehabilitation and
other costs, total $4,690,000.
➢ Speedway/Race Street Piping Improvements — $1,800,000
➢ Toscana Development Castlevale/Fechter (carry over) — $350,000
➢ Digester Improvement Plan — $550,000
➢ Collection System Pipeline Improvements — $500,000
➢ Plant Security Upgrades — $150,000
➢ Congdon Sewer Main (carry over) — $100,000
➢ Wastewater System Evaluation — $100,000
➢ Other Wastewater miscellaneous capital/major maintenance needs — $1,140,000
10 - Section III. Other Funds
Stormwater Capital Fund
Total 2015 budget - $2,025,000.
➢ N. 1St Street Revitalization Project - $1,790,000
➢ Randall Park reconstruction -- $50,000
➢ Cascade Mill site - $160,000
➢ Contingency -- $25,000
Airport Capital Fund
Total 2015 budget - $12,539,721.
➢ Taxiway Construction (Federal grant/interfund loan) - $12,539,721
Transit Capital
The 2015 budget of $1,749,000 is for miscellaneous capital needs and vehicle replacement.
➢ 3 Heavy Duty Buses - $1,300,000
➢ Replace Dial -a -ride vehicles - $392,000
➢ Other capital needs - $57,000
Parks Improvements Projects
The 2015 budget of $1,000,000 includes $900,000 for renovation of Randall Park, funded by a
combination of a state grant, community donations, and REET 1. The balance is for miscellaneous
capital needs and improvements to the Southeast Community Center restrooms.
Yakima Revenue Development Area
Total 2015 budget is $3,500,000, funded by a combination of the State sales tax credit ($1,000,000); a
County SIED grant ($900,000) and the beginning reserve balance:
➢ Purchase of landfill property (carry -forward) -- $900,000
➢ Construct Fair Avenue Roundabout - $2,600,000
Other Capital Projects/Transfers
➢ Law and Justice Capital fund - $639,636 for the Police Station / Legal Center related
equipment and projects including:
• Vehicle Replacement -- $100,000
• Replace Jail Control Panel - $165,000
• Washington Fruit Community Center Facility improvements - $100,000
• Live scan Fingerprinting System -- $70,000 (90% Grant revenue)
• Radio Replacement Program -- $15,000
• Complete SWAT Communication System upgrade -- $31,000
• Other miscellaneous projects and equipment - $158,636
➢ Convention Center Capital Improvements - $490,000 is programmed for ongoing capital
needs of the Center for 2015.
➢ CBD Capital Improvement - $91,000 for maintenance contract and other services.
Other Funds • Section III -11
LID Construction
There are no local improvement district projects budgeted in 2015.
Capital Improvement Fund Summary
Overall, Capital Fund expenditures in the 2015 Budget Summary of $39.0 million are $30.0 million
below the 2014 Amended budget of $69.0 million. The major projects completed in 2014 was $17
million of street improvements and $6.5 million for the Martin Luther King Jr railroad underpass
which represent $23.5 million that won't be carried forward into the 2015 budget. The utilities are
budgeting less in their capital funds, since the Water, Wastewater, and Stormwater rate proposals
are postponed to 2016. These factors combine to produce the drop in the 2015 capital budget.
Generally speaking, ongoing resources for capital needs are not keeping up with the demand, so
that capital improvements will likely remain in the forefront of future budget discussions.
It should be noted that with the passage of Proposition 1 on November 4, 2014, the final budget will
be changed to move $750,000 of property tax into the Parks and Recreation operating fund which
will then be transferred to the capital fund. The capital fund will also be increased by the same
amount, so that design work can begin on parks projects that will ultimately be approved by
Council.
GRANTS
The City has been successful in obtaining grants for many different purposes. The following table
identifies all of the grants/interlocal revenues budgeted to be received in 2015. Citywide, grants
add to over $31.1 million, which is about 15.7% of total revenues.
This grant summary is included in the Capital Improvement section because Capital grants make
up over half of the total grants awarded. Grants make up about 44.0% of revenue in the Capital
Improvement funds.
2015 GRANTS
(Federal, State & Interlocal Subsidies)
Department
Federal/State Capital Grants
Law & Justice Capital
Parks and Recreation
Arterial Streets
Arterial Streets
Arterial Streets
Arterial Streets
Trolley
Environmental Fund
Transit Capital
Airport Capital
Total Federal/State Capital Grants
12 — Section III. Other Funds
Description
JAG Grant
Department of Fisheries
Fair Ave/Nob Hill Intersection Rebuild
64th Ave. - Nob Hill to Tieton
N. 1st Street Revitalization Phase 1
Lincoln Corridor Safety 32nd to 5th
Trolley Enhancement Project
Department of Ecology
Federal Pass Thru Vehicles
FAA Alpha Taxiway Construction
Amount
of Grant
$41,636
500,000
21,538
784,000
17,300
315,000
52,349
500,000
411,267
12,145,000
$14,788,090
Amount
Department Description of Grant
Federal/State Operating Grants - General Government
Police Traffic Safety Commission $52,000
Fire SAFER Grant 259,436
Indigent Defense OPD Public Defense Grant 91,500
Airport Small Air Service Marketing 125,000
Parks and Recreation ALTC Reimbursement SCSA State Res 18,000
Parks and Recreation Senior Center - Foot care 25,300
Parks and Recreation State Day Care CFDA 93.044 11,000
Parks and Recreation State Transportation CFDA 93.043 500
Parks and Recreation State Transportation CFDA 93.043 7,000
Municipal Court Judicial Salary Contribution 46,000
General Fund In -lieu Property Taxes 6,330
Total Federal/State Operating Grants - General Government $642,066
Federal/State Operating Grants - Other Funds
Community Development Community Development Block Grant
Community Development HUD HOME Program
Transit UMTA - Current Year per Grant
Transit Commute Trip Pass Thru WSDOT
Transit WA State Transit Operating Grant
Transit WA State Transit Operating Grant
Transit WSDOT Rural Mobility Grant
Emergency Services Department of Health - Pre -hospital Grant
Total Federal/State Operating Grants - Other Funds
$841,886
406,607
2,200,000
6,000
117,977
313,507
43,082
1,726
$3,930,785
Federal Entitlements
PFD Capitol Theatre Capitol Theatre - Build America Bond Subsidy $99,422
Police Federal Forfeited Property 100,000
Total Federal Entitlements $199,422
State Shared Revenue
Police Criminal Justice - High Crime $344,000
Police Criminal Justice - Violent 123,220
Police Criminal Justice - Special programs 66,660
Police MVET DUI Payment 17,000
General Fund Liquor Excise Tax 178,000
General Fund Liquor Board Profits 820,000
Economic Development City Assistance 100,000
Parks and Recreation Criminal Justice - Special Programs 20,400
Streets Gas Tax 1,305,000
Arterial Streets Arterial Street Gas Tax 606,400
Firemen Relief & Pension Fire Insurance Premium Tax 72,838
Total State Shared Revenue $3,653,518
Other Funds • Section III -13
Amount
Department Description of Grant
Intergovernmental Contract / Services
Police Police - Fairgrounds $10,000
Police Resource Officers 678,311
Police YPD OT Reimbursement by County 5,000
Police Violent Crimes Task Force 15,000
Fire Fire - EMS Levy 34,500
Fire Personnel Services - Training 7,000
Fire Fire Investigator Services 500
Fire Fire Training Programs 2,000
Fire Fire Training Services 8,000
Parks and Recreation School District 7,500
Traffic Engineering Engineering Services 500
Purchasing Purchasing Services 266,193
Emergency Services EMS Levy 1,288,000
Public Safety Communications Fire District #10 24,000
Public Safety Communications 911 Service Contracts 1,815,764
Public Safety Communications Fire Dispatch Services 238,560
Public Safety Communications Police Dispatching Service 94,225
Public Safety Communications Information Technical Services 100,000
Public Safety Communications Union Gap Electronics 10,400
Public Facilities District Public Facilities District Revenue 816,000
PFD - Capitol Theatre Public Facilities District Capitol Theatre 618,200
YAKCORPS Intergovt IS Services 24,050
YAKCORPS YAKCORPS Assessment 605,777
Transit Selah Transit Bus 225,000
Transit Selah Transit Dial -a -Ride 60,000
Yakima County SIED Interlocal Grant 905,000
Total Intergovernmental Contract / Services $7,859,480
Total 2015 Grants and Other Subsidies $31,073,361
14 — Section III. Other Funds
STRATEGIC INITIATIVES
CITY ADMINISTRATION
City Clerk
Strategic Initiative Request / Justification
Proposed
Funding Source
Personnel
Salary / Benefits
Non -Personnel
S/P
Add half time Dept. Assistant III in the City
Clerk's office to assist with Public Disclosure
Request and Records Management processing
General Fund
$32,000
$130,000
PT
Economic Development
Strategic Initiative Request / Justification
Proposed
Funding Source
Personnel
Salary / Benefits
Non -Personnel
S/P
Add One Economic Development Department
General Fund
$65,900
$130,000
ED
Assistant Position
$52,100
Wine, Craft Beer and Cider Marketing/Branding
General Fund
$50,000
ED
Enhance/Expand Downtown Special Events:
General Fund
$102,000
ED
Expand Viva La Musica Concert Series and Blues
and Local Brews Festival; add 3 new events
Event Revenue
Net
$102,000
-0-
Airport Marketing - funded by a two year
General Fund
2015
ED
Federal DOT Grant with 50% match requirement
Federal Grant
$250,000
Net
$125,000
Total project $580,000 over 2 years, with $290,000
reimbursed by the grant
$125,000
Emersencv Prevaredness
Strategic Initiative Request / Justification
Proposed
Funding Source
Personnel
Salary / Benefits
Non -Personnel
S/P
Emergency Preparedness:
General Fund
$130,000
PT
Add one half time Emergency Prep Specialist
$52,100
Professional Services, Supplies, Training
$69,000
Savings from cancelling County contract
($69,000)
Note: Net increase for the program is only the
staffing costs
Visitor Information Center
Strategic Initiative Request / Justification
Proposed
Funding Source
Personnel
Salary / Benefits
Non -Personnel
S/P
Visitor Information Center Relocation to
Downtown.
Convention Center
Capital Fund
$130,000
BE
Economic Development
Public Safety
Strategic Priority Legend
ED Public Trust and Accountability
PS Partnerships
Built Environment BE
PT
PA
Strategic Initiatives • Section IV —1
Convention Center
Strategic Initiative Request / Justification
Proposed
Funding Source
Personnel
Salary / Benefits
Non -Personnel
S/P
Update Expansion Feasibility Study
PFD Fund
$44,500
$16,000
ED
Increase Conventions Center Management Fee
from $708,200 to $721,200 / 1.8%
Convention Center
Operating Fund
$13,000
PA
Increase Sports Commission Allocation from
$57,000 to $59,000 / 3.5%
Note: Since the Preliminary Budget was
"frozen", the Sports Commission modified
their request to $8,000. The final budget will
be amended for this change.
Hotel/Motel Tax
Cony Ctr Op Fund
Prelim. - $2,000
Final - $8,000
PA
Cavitol Theatre
Strategic Initiative Request / Justification
Proposed
Funding Source
Personnel
Salary / Benefits
Non -Personnel
S/P
Increase the Capitol Theatre Committee
management fee from $232,000 to $282,000
Hotel/Motel Tax
Cap Thtr Op Fund
PFD Tax Credit
$44,500
$50,000
PA
SunDome
Strategic Initiative Request / Justification
Proposed
Funding Source
Personnel
Salary / Benefits
Non -Personnel
S/P
Support SunDome Operations
(Note: Lodging Tax Advisory Committee
recommended $75,000 — Final budget will need
to be changed)
Hotel/Motel Tax
$44,500
$100,000
ED
HUMAN RESOURCES
Strategic Initiative Request / Justification
Proposed
Funding Source
Personnel
Salary / Benefits
Non -Personnel
S/P
Add 0.50 Human Resources Assistant to support
Public Safety recruiting
General Fund
$44,500
$400,000
BE
LEGAL
Strategic Initiative Request / Justification
Proposed
Funding Source
Personnel
Salary / Benefits
Non -Personnel
S/P
Increase Indigent Defense Contract
From $600,000 to $1,000,000
Mid 2014 — Add 2 positions
General Fund
$155,50
$400,000
PS
Economic Development
Public Safety
2 — Section 1V • Strategic Initiatives
ED
PS
Strategic Priority Legend
Public Trust and Accountability
Partnerships
Built Environment
BE
PT
PA
MUNICIPAL COURT
Strategic Initiative Request / Justification
Proposed
Funding Source
Personnel
Salary / Benefits
Non -Personnel
S/P
No 2015 Strategic Initiatives
General Fund
Revenue: County
Purchasing Contract
$52,300
Exp. $25,000
County 11,500
PT
FINANCE
Purchasing
Strategic Initiative Request / Justification
Proposed
Funding Source
Personnel
Salary / Benefits
Non -Personnel
S/P
Purchase and implement a Procurement
Software System. $25,000, reimbursed in
accordance to the joint purchasing agreement—
46% in 2015.
There will be ongoing maintenance costs, which
are typically a % of purchase price.
General Fund
Revenue: County
Purchasing Contract
$52,300
Exp. $25,000
County 11,500
PT
Net Exp $13,500
COMMUNITY DEVELOPMENT
Strategic Initiative Request / Justification
Proposed
Funding Source
Personnel
Salary / Benefits
Non -Personnel
S/P
Cascade Millsite Development
Property purchase $900,000
Fair Avenue Roundabout $2,600,000
LIFT Fund
$52,300
2015 - $3,500,000
ED
ONDS
Strategic Initiative Request / Justification
Proposed
Funding Source
Personnel
Salary / Benefits
Non -Personnel
S/P
Delete ONDS Department Assistant II
ONDS Fund—
reduction in CDBG
$52,300
2015 - $90,000
2016 - $120,000
PT
Plannin
Strategic Initiative Request / Justification
Proposed
Funding Source
Personnel
Salary / Benefits
Non -Personnel
S/P
Comprehensive Plan Updates (GF $45,000,
Streets $45,000 in 2015)
General Fund -50%
Streets & Traffic
Engineering -50%
2015 - $90,000
2016 - $120,000
ED
Economic Development
Public Safety
ED
PS
Strategic Priority Legend
Public Trust and Accountability
Partnerships
Built Environment
BE
PT
PA
Strategic Initiatives • Section IV — 3
Code Administration
Strategic Initiative Request / Justification
Proposed
Funding Source
Personnel
Salary / Benefits
Non -Personnel
S/P
Code Compliance Funding Change from ONDS
back to General Fund (1st year of a 3 year phase
in) in response to lower CDBG funding
General Fund
ONDS
$173,500
$55,000
55 000
BE
$0
City Hall Maintenance
Strategic Initiative Request / Justification
Proposed
Funding Source
Personnel
Salary / Benefits
Non -Personnel
S/P
City Hall Improvements:
Upgrade both elevators $345,000
Second floor lobby, public service
area, and lighting Upgrades $95,000
REET I
$173,500
$440,000
BE
POLICE
Strategic Initiative Request / Justification
Proposed
Funding Source
Personnel
Salary / Benefits
Non -Personnel
S/P
Add Two Police Officers for Federal Task Forces
General Fund
$173,500
PS
Continue the Succession Planning / Leadership
Development program -- Reclassify 4 Police
Officer Positions to Corporal
General Fund
$25,000
PS
Add One Police Public Information Officer
General Fund
$63,600
PS
Reclassify 4 Police Services Specialist to Lead
Services Specialists
General Fund
$28,000
PS
Yakima County Range Agreement
General Fund
$150,000
PS
Replace Jail Control Panel
Capital Fund
$165,000
PS
Live Scan Fingerprinting System
NCFIIP Grant — 90%
Capital Fund — 10%
$63,000
$7,000
PS
Radio Replacement Program
Law & Justice
Capital Fund
$15,000
PS
Complete SWAT Communication System
Upgrade
Law & Justice
Capital Fund
$31,000
PS
Economic Development
Public Safety
4 — Section 1V • Strategic Initiatives
Strategic Priority Legend
ED Public Trust and Accountability
PS Partnerships
Built Environment BE
PT
PA
Public Safety Communications
Strategic Initiative Request / Justification
Proposed
Funding Source
Personnel
Salary / Benefits
Non -Personnel
S/P
Communications Center Relocation:
Public Safety
2015 Fund #151:
PS
Initial cost for furnishings $970,000
Communications
Initial cost $970,000
PS
Funded by: Interfund Loan 720,000
Fund #151
$90,000
PS
Fund Balance $250,000
Fire Capital Fund-
State LOCAL lease
program
$75,000
PS
Buy out the Broadway Fired District's ownership
in Fire Rescue Boat/Tech Rescue Unit
General Fund
$40,000
PS
Additional on-going costs:
Transfer
TBD
PS
Debt Service to the County (est) $211,000
$300,000-2015
Bond $211,000
Annual Lease: $64,000 (2015 6 mos) $32,000
$350,000-2016 +
Lease 32,000
IF Loan Repayment: -0- in 2015 $75,000
$1,213,000
FIRE
Strategic Initiative Request / Justification
Proposed
Funding Source
Personnel
Salary / Benefits
Non -Personnel
S/P
Fire Engine
10 year debt service - $48,000/year, starting in
2016
Fire Capital Fund-
State LOCAL lease
program
$450,000
PS
Ladder Truck
10 year debt service - $123,000/year, starting in
2016
Fire Capital Fund-
State LOCAL lease
program
$1,150,000
PS
Purchase Two Staff Vehicle Replacements
6 year debt service - $16,800/year, starting in
2016
Fire Capital Fund-
State LOCAL lease
program
$90,000
PS
Rehab/Breathing Air Resources Unit
6 year debt service - $14,000/year, starting in
2016
Fire Capital Fund-
State LOCAL lease
program
$75,000
PS
Buy out the Broadway Fired District's ownership
in Fire Rescue Boat/Tech Rescue Unit
Fire Capital Fund
$40,000
PS
Union Gap Fire —
To be added to the Final Budget
TBD
TBD
PS
Economic Development
Public Safety
Strategic Priority Legend
ED Public Trust and Accountability
PS Partnerships
Built Environment BE
PT
PA
Strategic Initiatives • Section IV — 5
YAKIMA AIRPORT
Strategic Initiative Request / Justification
Proposed
Funding Source
Personnel
Salary / Benefits
Non -Personnel
S/P
Maintenance Vehicle Replacement — 2 Trucks
Airport Operating
$55,000
ED
21st Avenue Extension
Arterial Street Fund
$175,000
BE
UTILITIES & ENGINEERING
Engineering
Strategic Initiative Request / Justification
Proposed
Funding Source
Personnel
Salary / Benefits
Non -Personnel
S/P
North 1" Street Revitalization
Cumulative
Reserve for Capital
Improvement Fund
$1,300,000
BE
Yakima Railroad Grade Separation Project
Cumulative
Reserve for Capital
Improvement Fund
$600,000
BE
Wastewater
Strategic Initiative Request / Justification
Proposed
Funding Source
Personnel
Salary / Benefits
Non -Personnel
S/P
Wastewater Capital Program
Wastewater Capital
BE
Speedway/Race Street Improvements
$1,800,000
Toscana Development Castlevale/Fechter
350,000
Digester Project
550,000
Collection System Upgrades
500,000
Plant Security Upgrades
150,000
Congdon Sewer Main
100,000
Wastewater System Evaluation
100,000
Other Wastewater Capital Projects
1,140,000
Total
$4,690,000
Water
Strategic Initiative Request / Justification
Proposed
Funding Source
Personnel
Salary / Benefits
Non -Personnel
S/P
Water Capital Program
Water Capital
BE
Modifications to River at WTP Plant Intake
$1,000,000
Water Main Replacement
1,400,000
Other Water Capital Projects (to be increased
to $270,000 in the Final Budget)
100,000
Total
$2,500,000
Economic Development
Public Safety
6 — Section 1V • Strategic Initiatives
Strategic Priority Legend
ED Public Trust and Accountability
PS Partnerships
Built Environment
BE
PT
PA
Irrigation
Strategic Initiative Request / Justification
Proposed
Funding Source
Personnel
Salary / Benefits
Non -Personnel
S/P
Irrigation Capital Program
Irrigation Capital
$76,200
$175,000
BE
Fruitvale Canal Diversion System
Transit Capital
Fund
$500,000
BE
W Yakima Avenue
725,000
Main and Pump Refurbish
25,000
Total
$1,250,000
Stormwater
Strategic Initiative Request / Justification
Proposed
Funding Source
Personnel
Salary / Benefits
Non -Personnel
S/P
Water Capital Program
Stormwater Capital
$76,200
$175,000
BE
N. 1" Street Revitalization Project
Transit Capital
Fund
$1,790,000
BE
Randall Park reconstruction
50,000
Cascade Mill site
160,000
Contingency
25,000
Total
$2,025,000
PUBLIC WORKS
Streets
Strategic Initiative Request / Justification
Proposed
Funding Source
Personnel
Salary / Benefits
Non -Personnel
S/P
Add one Snow Blower to the Street Maintenance
Fleet to comply with new snow removal
procedure
Equipment
Replacement Fund
$76,200
$175,000
PS
Transit
Strategic Initiative Request / Justification
Proposed
Funding Source
Personnel
Salary / Benefits
Non -Personnel
S/P
Transit Operations Specialist
Transit Operating
Fund
$76,200
ED
Purchase 3 Heavy Duty Replacement Buses
Transit Capital
Fund
$1,290,000
BE
Economic Development
Public Safety
Strategic Priority Legend
ED Public Trust and Accountability
PS Partnerships
Built Environment BE
PT
PA
Strategic Initiatives • Section IV — 7
Refuse
Strategic Initiative Request / Justification
Proposed
Funding Source
Personnel
Salary / Benefits
Non -Personnel
S/P
Add One Solid Waste Collector/Driver
Refuse Operating
$69,500
$1,490,000
BE
Parks & Recreation
Fund
$900,000
BE
Refuse Rate Proposal - Preliminary Budget
Refuse Operating
Revenue $386,000
BE
Budget reductions if Rates not approved:
Fund
Delay purchase of recycling carts $85,000
Eliminate Fall Leaf Clean-up 80,000
Eliminate 1 Code Compliance position 77,000
Reduce Related State and Local taxes 74,900
Total reductions $316,900
Eauivment Rental
Strategic Initiative Request / Justification
Proposed
Funding Source
Personnel
Salary / Benefits
Non -Personnel
S/P
Fleet Vehicle Additions and Replacements
Equipment Rental
$1,490,000
PT
Parks & Recreation
Replacement Fund
$900,000
BE
Toro Groundmaster 590 $90,000
Streets
Snow Blower (addition) 175,000
Replacement Dump Truck Body 95,000
Bucket Truck - Signals 175,000
Water & Irrigation
Backhoe 150,000
One Ton Truck 45,000
Refuse
Automated Sideloader 315,000
Automated Sideloader 315,000
Wastewater
Side Dumping Trailer 65,000
Side Dumping Trailer 65,000
Total $1,490,000
Add Two Mechanic I positions:
Equipment Rental
$137,400
PT
Funded by M&O charges to all operating funds
using Equip. Rental for fleet maintenance.
Operating Fund
Parks & Recreation
Strategic Initiative Request / Justification
Proposed
Funding Source
Personnel
Salary / Benefits
Non -Personnel
S/P
SE Community Center Restroom Restoration
Parks Capital Fund
$100,000
BE
Randall Park Improvement
RCO Grant
$900,000
BE
Economic Development
Public Safety
8 — Section 1V • Strategic Initiatives
ED
PS
Strategic Priority Legend
Public Trust and Accountability
Partnerships
Built Environment
BE
PT
PA
CITY ADMINISTRATION / ECONOMIC DEVELOPMENT
2015 STRATEGIC INITIATIVE
ADD 1/ TIME DEPARTMENT ASSISTANT III
BUDGETED
PROPOSAL
Add one permanent part time (50%) Department Assistant III position in the City Clerk's office.
This position is to assist with Public Records and Records Management issues. Our public records
requests have skyrocketed over the years as noted below:
➢ 2011 -- 321
➢ 2012 — 486 a 52% increase
➢ 2013 — 564 a 16% increase
➢ 2014 -- 787 YTD a 62% increase over Nov 12, 2013 (485)
➢ 2014 -- 900 Projected YE a 60% increase over 2013 and 280% over 2011
This position will help us respond to the ever increasing requests, as well as assist the Deputy City
Clerk handle records retention citywide, thus decreasing the amount of documents needed to
respond to requests.
IMPACTS
1. Fiscal Impact — $32,000.
2. Proposed Funding Source — General Fund.
3. Public Impact — More savings will be realized through the ability to handle more records
requests in a timely manner, as well as retain records per the state guidelines, thus
decreasing the amount of documents needed to respond to requests.
4. Personnel Impact — Add one permanent part time (50%) Department Assistant III position.
5. Required Changes in City Regulations or Policies — None.
6. Legal Constraints, if applicable — None.
7. Viable Alternatives — None.
Strategic Initiatives • Section IV — 9
CITY ADMINISTRATION / ECONOMIC DEVELOPMENT
2015 STRATEGIC INITIATIVE
ADD ONE ECONOMIC DEVELOPMENT DEPARTMENT ASSISTANT
BUDGETED
PROPOSAL
In 2015, the City of Yakima will add a second full time employee to the Economic Development
Department. The Economic Development Assistant will research local data as it relates to Economic
Development in key economic driver focus areas. The position will perform all administrative
functions of the economic development department, issue all special event permits city wide and
lead implementation and partnership efforts for City Sponsored Special Events programs including
Downtown Summer Nights, Lunchtime Live, Yakima Blues and Local Brews, County Americana
Festival, Windows Alive and development of new events and activities. This new position will free
time for the Economic Development Manager to focus attention retail recruitment efforts, air
service expansion, local business outreach and other higher impact economic development
endeavors.
IMPACTS
1. Fiscal Impact - $65,900 in the 2015 budget. The job description has not yet been finalized
and placed in the Pay Ordinance. If this process results in a higher pay scale, the hiring date
would be modified.
2. Proposed Funding Source - General Fund.
3. Public Impact - Additional events and more focus on long-term economic development.
4. Personnel Impact - One full time employee.
5. Required Changes in City Regulations or Policies - None.
6. Legal Constraints, if applicable - New job description through the Civil Service process
and placed in the Pay Ordinance.
7. Viable Alternatives - None.
10 - Section IV • Strategic Initiatives
CITY ADMINISTRATION / ECONOMIC DEVELOPMENT
2015 STRATEGIC INITIATIVE
WINE, CRAFT BEER & CIDER MARKETING /BRANDING
BUDGETED
PROPOSAL
Numerous Northwest cities have strengthened their local economies by focusing on the promotion
and branding of their local beverage industries. Bend Oregon's "Beer Trail", Woodinville,
Washington's "Wine Country" and Walla Walla Washington's wine industry are huge draws for
travelers and have gained recognition for their communities through numerous articles in
magazines and newspapers. In Yakima, we have seven locally owned wineries, two local
distilleries, two locally owned breweries with four more in the works and a nationally regarded
cider production facility opening in City limits in late 2014. The critical mass and quality of our
product is significant enough to draw travelers but we lack a cohesive marketing message, special
event promotional package and publicity plan to communicate our community offerings to a larger
public. This project will work directly with Yakima's private sector beverage industry to create a
cohesive marketing effort.
IMPACTS
1. Fiscal Impact - $50,000.
2. Proposed Funding Source - General Fund.
3. Public Impact - The tourism and local beverage industries --Economic development for
both.
4. Personnel Impact - Managing the process.
5. Required Changes in City Regulations or Policies - None.
6. Legal Constraints, if applicable - Possible contract.
7. Viable Alternatives - None.
Strategic Initiatives • Section IV -11
CITY ADMINISTRATION / ECONOMIC DEVELOPMENT
2015 STRATEGIC INITIATIVE
ENHANCE /EXPAND DOWNTOWN SPECIAL EVENTS
BUDGETED
PROPOSAL
In 2013, the City of Yakima created new special events to activate the downtown district. The events
included Downtown Summer Nights, Lunchtime Live and Light Up the Plaza. In 2014, the City
introduced the Blues and Local Brews Festival and Viva La Musica Concert Series in Miller Park. In
2015, we intend to expand the Viva La Musica Concert Series to 12 weeks, expand the Blues and
Local Brews Festival to include national entertainers and introduce three new events. In May, we
will roll out a new Country American music event, in June we will do a children's activity event
and in September we will introduce a harvest food event. Many of these events include revenue
sources (ticketing, beer / wine sales, and sponsorships) which cover a majority of the costs.
IMPACTS
1. Fiscal Impact - $102,000 Supported 100% by new event concession revenue.
2. Proposed Funding Source - General Fund.
3. Public Impact - The public has responded well to new events and activities in the
downtown, and would enthusiastically like to see continued growth in the offerings.
4. Personnel Impact - Administration of the new events (the new Economic Development
Department Assistant position is critical to the continuing expansion of events).
5. Required Changes in City Regulations or Policies - None.
6. Legal Constraints, if applicable - None.
7. Viable Alternatives - None.
12 - Section 117 • Strategic Initiatives
CITY ADMINISTRATION / ECONOMIC DEVELOPMENT
2015 STRATEGIC INITIATIVE
AIRPORT MARKETING
BUDGETED
PROPOSAL
In September of 2014, the City of Yakima was awarded a $290,000 Small Community Air Service
Development Grant from the Federal Department of Transportation. This two year grant will be
matched by $290,000 of local funds to assist in the expansion of our local air service opportunities.
In 2015, we will engage in further conversations with Alaska Airlines to add a fourth flight to their
SeaTac hub and use our local funds to market the additional service. At Alaska's request, we will
also begin discussions on adding a fifth daily flight to Portland.
IMPACTS
1. Fiscal Impact -
2015 2016 Total
General Fund $250,000 $330,000 $580,000
Federal Grant 125,000 165,000 290,000
Net $125,000 $165,000 $290,000
2. Proposed Funding Source - General Fund - 50% reimbursed by Federal Department of
Transportation Grant.
3. Public Impact - Will work to provide more flight connections in and out of Yakima.
4. Personnel Impact - Managing professional service contracts/grant administration.
5. Required Changes in City Regulations or Policies - None.
6. Legal Constraints, if applicable - Accept Grant and complete contract.
7. Viable Alternatives - None.
Strategic Initiatives • Section IV —13
CITY ADMINISTRATION / ECONOMIC DEVELOPMENT
2015 STRATEGIC INITIATIVE
EMERGENCY PREPAREDNESS
BUDGETED
PROPOSAL
The Council voted on August 5, 2014 for the self-determination of the City's Emergency
Preparedness. This became a new area of responsibility and budget for the City of Yakima. The
evolution of Emergency Management in Yakima will require a staff addition (50% Employee) and
external professional services to certify and develop the skill sets of incident response and support
personnel achieve success.
The Yakima Emergency Preparedness undertaking will require the addition of professional staff in
order to achieve the demands of the Emergency Management task. The job description has been
created by the Human Resources Department and approved by the Civil Service Commission. The
position is necessary to support the Emergency Preparedness Director in development of programs,
facilitate instruction, and lead community outreach. Initially the position will be a part time (50%
Employee) with no anticipated change during this budget year. The salary will be commensurate
with the "Emergency Preparedness Specialist" job description.
Yakima Emergency Preparedness will need to utilize professionals and practitioners in the field of
Emergency Management to in order to facilitate the transition responsibilities and develop staff
capabilities. A Budget line capacity for consulting and professional services should be established
for 2015. The initial projection for such services is $35,000 based on anticipated needs and existing
timelines for that budget year. Additionally, a budget for small tools and staff training has been
developed, totaling $34,000. When the contract for Yakima County Emergency Management is
subtracted, the net increase for this program is only the staffing cost.
IMPACTS
1. Fiscal Impact -
One 0.5 Position $52,100
Professional Services 35,000
Small Tools, Travel & Training 34,000
Less: Contract with Yakima County EP (69,000)
Net program increase $52,100
2. Proposed Funding Source - General Fund.
3. Public Impact - None.
4. Personnel Impact - Additional 0.5 FTE.
5. Required Changes in City Regulations or Policies - None.
6. Legal Constraints, if applicable - Contract development/approval.
7. Viable Alternatives - None.
14 - Section 117 • Strategic Initiatives
CITY ADMINISTRATION / VISITOR INFORMATION CENTER
2015 STRATEGIC INITIATIVE
VISITOR INFORMATION CENTER RELOCATION TO DOWNTOWN
BUDGETED
PROPOSAL
The Yakima Valley Visitor Information Center is located on Fair Avenue next to the Gateway
Center. While its location is easily visible to travelers on I-82, it's not easy to find once travelers get
off on Yakima Avenue. In 2013, the Visitor Information Center served nearly 14,000 walk in visitors
and the building is owned by the City of Yakima. We propose moving the Visitor Information
Center to a City owned parcel of land on the corner of 9th Street and Yakima Avenue to make it very
accessible to travelers and to make it an easier launching pad to many of the City of Yakima s
restaurants, hotels and other unique attractions. In this new location, we anticipate a higher usage
of the center's offerings as well as a larger advocate for Yakima based attractions.
IMPACTS
1. Fiscal Impact - $130,000.
2. Proposed Funding Source - Convention Center Capital Fund (370).
3. Public Impact - Makes the Center more visible and therefore accessible to the visiting
public.
4. Personnel Impact - The new location is closer to Yakima Valley Visitors and Convention
Bureau, making maintenance and stocking more convenient.
5. Required Changes in City Regulations or Policies - None.
6. Legal Constraints, if applicable - None.
7. Viable Alternatives - None.
Strategic Initiatives • Section IV —15
CITY ADMINISTRATION / CONVENTION CENTER
2015 STRATEGIC INITIATIVE
UPDATE EXPANSION FEASIBILITY STUDY
BUDGETED
PROPOSAL
Built in 1976, the Yakima Convention Center is an important asset for downtown, the City of
Yakima and Yakima County. Each year the Center attracts and serves around 120,000 people
resulting in $8.0 million in direct economic impact. The center has gone through two expansions
(1996 and 2001) plus the plaza. The 1996 expansion was funded by Hotel/Motel Tax, and will be
paid in full in 2019. The 2001 addition was funded by the Public Facilities District (PFD) state sales
tax credit and will be paid in full in 2026.
In 2007 GVA Kidder Mathews of Bellevue was commissioned to conduct a feasibility study for an
expansion of the Center, utilizing data from 2007 or earlier. While their report did support a smaller
facility expansion, due to the uncertainty of the economy it was decided not to pursue an expansion
for the near term. As the recession has subsided and the market conditions have changed, the PFD
Board has decided it is time to reassess the potential. GVA Kidder Mathews has informed us that to
update the existing plan would cost $16,000 (the original work cost $26,000). Briefly the scope of
work would:
➢ Determine and evaluate the Yakima Convention Center Market in comparison to
competitors
➢ Estimate the market share obtainable by an expanded facility
➢ Review facility space requirements to ensure they match potential markets
➢ Identify tradeoff of space versus revenue if facility is not built to match market potential
➢ Determine potential growth of hotel/motel tax for the next five years
➢ Project operating revenue for the next five years
The results of the study will help staff, the PFD and City determine if an expansion is feasible and if
so, what options could be pursued.
IMPACTS
1. Fiscal Impact - One time allocation of $16,000 to update a 2008 study.
2. Proposed Funding Source - #172 - PFD Convention Center.
3. Public Impact — None.
4. Personnel Impact — None.
5. Required Changes in City Regulations or Policies — None.
6. Legal Constraints, if applicable — None.
7. Viable Alternatives — None.
16 - Section IV • Strategic Initiatives
CITY ADMINISTRATION / CONVENTION CENTER
2015 STRATEGIC INITIATIVE
INCREASE CONVENTION CENTER MANAGEMENT FEE
BUDGETED
PROPOSAL
The Yakima Valley Visitors & Convention Bureau manages and operates the Yakima Convention
Center. The management fee includes two components—the direct payroll costs for center
operation and a management fee to the Bureau. This proposal requests a $13,000 or 1.8% increase
to the total Management Fee from $708,200 to $721,200. This includes wages for the Convention
Center staff increasing from $528,300 to $538,300 or 1.9%. The management fee to the Bureau
increases from $175,000 to $178,000 or 1.7%. These increases will assist in covering the costs of
wages (including extra hours and staff for peak times), rising insurance costs, L&I and taxes.
The Convention Center operates at a staffing level lower than our competition statewide and
nationally as well, according to PriceWaterhouse Coopers.
In addition to operating with less staff, the Center does it with exceptional professionalism and
service. It is because of this service that groups return to Yakima and the Convention Center,
adding to the economic impact for the city.
This chart compares the Center staffing with similar sized facilities in Washington:
FTE PT SQ. FT.
Yakima 8 8 41,000
Tri -Cities 17 45 47,474
Meydenbauer 24 31 55,720
National 29 45 Under 100,000 sq. ft.
IMPACTS
1. Fiscal Impact - $13,000 Increase - from $708,200 in 2014 to $721,200 in 2015.
2. Proposed Funding Source - Convention Center Operating fund #170—Hotel/Motel tax and
Convention Center operations.
3. Public Impact - Continue to provide exceptional service.
4. Personnel Impact - Allow adequate staffing resources to maintain the Convention Center
facility and continue to provide a high level of service/support to clients and patrons.
5. Required Changes in City Regulations or Policies — None.
6. Legal Constraints, if applicable — None.
7. Viable Alternatives — None.
Strategic Initiatives • Section IV —17
CITY ADMINISTRATION / CONVENTION CENTER
2015 STRATEGIC INITIATIVE
INCREASE SPORTS COMMISSION ALLOCATION
BUDGETED
PROPOSAL
Yakima hosts most of the national, regional and state amateur or professional athletic competitions
in Yakima County. As a result, sporting events play a vital role for the city's economy. In 2013 there
were 447 sporting events held in the region, resulting in nearly $35 million in direct visitor
spending.
The Yakima Valley Sports Commission (a division of Yakima Valley Visitors & Convention Bureau)
is charged with building this important tourism sector. In addition to attracting and servicing
sporting tournaments to Yakima, all of their signature events occur in the City of Yakima (Pirate
Plunder Adventure Race, Hot Shots 3 on 3 Tourney, SunDome Volleyball Festival and the Sports
Award Luncheon).
The City's allocation to the commission has not increased in more than seven years. Our initial
request is a modest $2,000 or 3.5% increase for 2015 for a total of $59,000 to assist the Sports
Commission in their efforts to attract sporting events to the community. In 2014 the City provided
$57,000 to the commission for sales efforts and operations.
At the October 28, 2014 study session, Council asked if the Sports Commission required additional
support. The request was modified to $8,000 —the final budget will be amended.
IMPACTS
1. Fiscal Impact — $8,000.
2. Proposed Funding Source - Convention Center Operating Fund #170 -- Hotel/Motel Tax.
3. Public Impact - Maintain economic catalyst provided by athletic competitions.
4. Personnel Impact — None.
5. Required Changes in City Regulations or Policies — None.
6. Legal Constraints, if applicable — None.
7. Viable Alternatives — None.
18 - Section 117 • Strategic Initiatives
CITY ADMINISTRATION / CAPITOL THEATRE
2015 STRATEGIC INITIATIVE
INCREASE CAPITOL THEATRE COMMITTEE MANAGEMENT FEE
BUDGETED
PROPOSAL
The Capitol Theatre facility is owned by the City of Yakima. For the past 34 -years, the facility has
been managed by the Capitol Theatre Committee (CTC), a separate non-profit corporation
administered by a professional staff under the stewardship of a community based volunteer board
of directors. The City and CTC work under the covenants of a management agreement that has
been in place since the 1975 opening of the facility. Under the terms of the agreement:
CTC is responsible for:
➢ The enhancement of the economic and cultural climate of the City and its environs.
➢ The promotion, operation and/or use of such facility for assembly purposes.
➢ All costs of administration and daily operational expenses including general maintenance
and janitorial.
The City is responsible for:
➢ The major upkeep, maintenance, and repair of the Theatre premises and fixtures.
».... As shall be necessary by mutual agreement of City & CTC.
The CTC has taken these covenants and expanded them into three core values that guide the
organization:
➢ Maintain the facility on behalf of its owner, the City of Yakima.
➢ Facilitate access to the facility for both clients and consumers.
➢ Present performing arts events that would not otherwise be available to our community.
This partnership has built and sustained a foundation of quality -of -life and economic vitality,
drawing nearly 100,000 visitations annually to the downtown core for over three decades. During
this time, the CTC has been able to grow the organization to meet the ever evolving demands of the
business that is the performing arts. It has done so through a community based investment
formula that has fostered growth within the realistic boundaries of available resources. We have
been careful not to overly rely on any one revenue stream. At the same time, each resource is
critical to the financial solvency of the organizations. For example, the CTC generates 15% of its
revenue through community contributions and support, and 70% through ticket sales, rental fees
and other earned sources. The remaining 15% is received as a City management fee.
Ticket sales and contributions are not keeping pace with the disproportionate increase in the costs
association with community access and production. With a breakeven budget of approximately $1.5
million, any small change in the makeup of our support matrix dramatically affects the CTC's
financial stability.
Strategic Initiatives • Section IV —19
The CTC is also currently in a period of transition as the current executive director is retiring, and
they are in a process of selecting a replacement. This process is adding extra expense that current
operations are not able to support.
IMPACTS
1. Fiscal Impact - $50,000 increase in the management fee (from $232,000 to $282,000). This is
the first adjustment in the management fee in three years.
2. Proposed Funding Source - Capitol Theatre Operating Fund #171 -- $25,000 from Public
Facility District Revenues, $25,000 from Hotel/Motel tax.
3. Public Impact - Continue to provide quality entertainment to the community.
4. Personnel Impact - None.
5. Required Changes in City Regulations or Policies - None.
6. Legal Constraints, if applicable - None.
7. Viable Alternatives - The CTC cannot afford to encumber losses. Balancing the budget is
critical. The CTC has already reduced overhead by $225,000 (16%) annually, including
shedding 44% of its salaried staff.
20 - Section 117 • Strategic Initiatives
CITY ADMINISTRATION / SUNDOME
2015 STRATEGIC INITIATIVE
SUPPORT SUNDOME OPERATIONS
BUDGETED
PROPOSAL
The Central Washington Fair Association (CWFA) approached the City with a request for operating
support for the SunDome in the amount of $100,000. Yakima County owns the facility, and CWFA
operates it. The Board presented their request detailing their financial difficulties over the past
several years, and noting that most other facilities like the SunDome receive a subsidy from lodging
taxes in their respective communities. Yakima County to date has offered capital assistance, but not
operating assistance.
Since the SunDome meets the definition of being a tourism -related facility owned or operated by a
nonprofit organization, it is eligible to be a recipient of lodging taxes (i.e. hotel/motel taxes). RCW
67.28.1816 sets forth the process for eligible organizations to present their request to the Lodging
Tax Advisory Committee (LTAC). The LTAC was appointed by Council and heard the Fair Board's
presentation. The unanimous decision by the LTAC was to allocate $75,000 of Lodging Tax for
SunDome operations.
IMPACTS
1. Fiscal Impact - $100,000 is in the preliminary budget. The State Law says that the Council
has to honor the amount of lodging taxes approved by the LTAC of $75,000. If Council
wants to distribute the remaining $25,000, it would need to come from General Fund.
2. Proposed Funding Source - $75,000 Lodging Taxes - included in the Tourism Promotion
Fund #170. General Fund for any amount over $75,000.
3. Public Impact - Sustainability of the Central Washington State Fair Association.
4. Personnel Impact - None.
5. Required Changes in City Regulations or Policies - None.
6. Legal Constraints, if applicable - Will need to contract with CWFA to detail applicable uses
of the funding.
7. Viable Alternatives - Only award the $75,000 authorized by the LTAC.
Strategic Initiatives • Section IV - 21
HUMAN RESOURCES
2015 STRATEGIC INITIATIVE
ADD 1/ TIME HUMAN RESOURCES ASSISTANT
BUDGETED
PROPOSAL
Public Safety requires the dedicated assistance of Human Resources to oversee the advertising,
recruiting, facilitating and monitoring of the hiring processes of both commissioned and non-
commissioned personnel. This would include police officers, corrections officers, support
personnel, and communications personnel. These positions require regular testing and eligibility
lists need immediate attention in order for the best candidate to be considered. In addition this
position will assist with other internal technical projects. The proposal is to add a permanent part-
time (50%) Human Resources Assistant.
IMPACTS
1. Fiscal Impact - $44,500.
2. Proposed Funding Source - General Fund.
3. Public Impact - This initiative would improve public safety by assisting the Departments to
maintain the full complement of authorized personnel. There would be fewer vacancies and
more officers on the street. It would increase public trust and accountability by ensuring
that the most highly qualified and sought-after applicants are hired.
4. Personnel Impact - Addition of one half-time position.
5. Required Changes in City Regulations or Policies - None.
6. Legal Constraints, if applicable - None.
7. Viable Alternatives - Continue with the current staffing levels and processes. This will
result in continued police officer vacancies and long turn -around times for hiring.
22 - Section 117 • Strategic Initiatives
LEGAL
2015 STRATEGIC INITIATIVE
INCREASE INDIGENT DEFENSE CONTRACT
BUDGETED
HISTORY
On June 15, 2012, Washington Supreme Court issued a new Rule CrRLJ 3.1 which sets new
standards for the defense of indigent persons (public defenders). The Rule was to go into effect on
September 1, 2013, but was delayed until January 1, 2015. The new caseload limit standard for
attorneys providing indigent defense services in misdemeanor cases on a full time basis is 300 cases
per year, if the contracting agency employs a case weighting system, and 400 cases per year, if no
case weighting system is used. All Court Rules, including the new revised indigent defense
standards, are enforced by the Court and apply to all licensed attorneys who appear in court. This
rule will apply to indigent defense providers appearing in the City of Yakima Municipal Court.
The 2013 Preliminary Budget Summary included a proposal to add staff to manage a Pre -filing
Diversion Program and a Charging Unit, along with additional court calendars. It was estimated
that between these two programs we could reduce the filings; from 5,150 to 3,400. If such an overall
reduction were accomplished, the potential effect would be a reduction in the number of additional
indigent defense attorneys required to handle new cases from 7.5 to 4. The Charging Unit and the
Pre -Filing Diversion Program were implemented in June of 2013. The caseload numbers in 2013
and 2014 indicated the Charging Unit/Pre-Filing Diversion Program would meet the goals
anticipated. Caseload numbers are expected to be between 3,000 and 3,200 in 2014, which is better
than the stated goals.
The Prosecution Division has added an attorney in anticipation of the work demands of the
indigent defense attorneys. The original proposal was for an entry level position, but an
experienced attorney who left for the military, finished his tour of duty and decided to return to the
City Legal Department, so this position was added in mid -2014. A part-time legal assistant was also
added in mid -2014 to assist the new prosecuting attorneys.
Because this program is working, the contract for Indigent Defense was modified to add one
indigent defense attorney in 2014, and another three beginning in December of 2015, so their office
will be ready when the Court Rule goes into effect on January 1, 2015. The contract is going from
$600,000 in 2014 to $1,000,000 in 2015.
IMPACTS
1. Fiscal Impact — $555,500
City Attorney II position (added in 2014) $123,500
0.5 Legal Assistant II (added in 2014) 32,000
Subtotal - Legal Prosecution Division 155,500
Indigent Defense Contract Increase 400,000
Total 2013 Increase $555,500
Strategic Initiatives • Section IV — 23
2. Proposed Funding Source - General Fund.
3. Public Impact - Indigent Defense in accordance with case law standards.
4. Personnel Impact - Maintain the Prosecution Charging Unit and Pre -filing Diversion
Programs. YPD Officers will continue to receive training on new charging procedures.
5. Required Changes in City Regulations or Policies - Indigent Defense Contract.
6. Legal Constraints, if applicable - New rule.
7. Viable Alternatives - None.
24 - Section 117 • Strategic Initiatives
FINANCE / PURCHASING
2015 STRATEGIC INITIATIVE
PROCUREMENT SOFTWARE & SERVICES
BUDGETED
PROPOSAL
The 2013 Employee Survey identified areas related to excessive workload and the need for a
software system to partly alleviate it and work more efficiently. Though an automated e -
procurement system was strongly recommended in the 2008 Joint Administrative Purchasing
Assessment that lead to the County closing its Purchasing Department and contracting for
Purchasing services with City, it was agreed to hold off until the implementation of Cayenta to
determine if there was already a solution available, which there is not. While a true e -procurement
system is desired, the cost of $250,000 is not recommended at this time. Preliminary research with
several web -based software vendors has revealed a not -to -exceed budget of $25,000 which will
enable further research and implementation of web -based software in 2015. The software will
automate current manual processes such as: Contract Management, Vendor Self Service (Vendor
registers and maintains their own data, keeping current the list of commodities they carry,
uploading W -9's, etc.), bid solicitation, award, expiration notices, and reports. Implementation of
this new software will allow purchasing to continue with the current FTE's without the need to ask
for additional staff.
IMPACTS
1. Fiscal Impact - $25,000 per year (The cost split for the County's purchasing contract is 46%
based on 2013/14 time logged by the staff, therefore , the service revenue from the County
will include $11,500 from the County. This leaves a net expense of $13,500 for the City).
2. Proposed Funding Source - General Fund. Yakima County will be paying 46% of
Purchasing's budget for 2015.
3. Public Impact - Better service to support all City/County Departments. Improved supplier
relations.
4. Personnel Impact - Improved efficiency.
5. Required Changes in City Regulations or Policies - None.
6. Legal Constraints, if applicable - None.
7. Viable Alternatives - Continue manual contract management, solicitation, award,
expiration notices, and vendor database management. The Division is having a difficult
with their workload, so automating currently manual processes is avoiding/postponing a
request to add a Buyer position.
Strategic Initiatives • Section IV - 25
COMMUNITY DEVELOPMENT
2015 STRATEGIC INITIATIVE
CASCADE MILLSITE DEVELOPMENT
BUDGETED
PROPOSAL
Project level construction will begin in 2015 to support the Cascade Mill Development Project. The
Fair Avenue Roundabout will be constructed using city authority for Local Infrastructure
Improvement Tool (LIFT) funds, estimated at $2.6 Million. This improvement provides mobility
and safety improvements to the existing road network and constructs the roadway into the mill site
that will allow cleanup of the landfill. Construction of this roadway will meet the LIFT requirement
to start project construction on or before June 2017. The Cascade Mill Site Development fund also
includes $900,000 for purchase of landfill property.
IMPACTS
1. Fiscal Impact - LIFT funds of $3.5 Million will be expended in 2015 to start project
construction.
2. Proposed Funding Source - Local Infrastructure Finance Tool (LIFT Fund) —
State Sales Tax Credit - $1,000,000
Yakima County SIED Grant - 900,000
Fund Balance - 1,600,000
3. Public Impact -Construction of the Fair Avenue Roundabout will be a major street
construction project. Traffic control plans and detour routes will be available well in
advance of project. Inconveniences will be minimized. Streets will be kept open as much as
possible.
4. Personnel Impact - The engineering and project construction responsibilities are contracted
with Lochner Associates.
5. Required Changes in City Regulations or Policies — None.
6. Legal Constraints, if applicable — Project/bid management.
7. Viable Alternatives - Funding of the Fair Avenue Roundabout did not qualify for grant
funding by the Transportation Improvement Board. Additional segments of the Cascade
Mill Parkway will likely meet TIB funding programs once we build this improvement.
26 — Section 117 • Strategic Initiatives
COMMUNITY DEVELOPMENT / ONDS
2015 STRATEGIC INITIATIVE
DELETE ONDS DEPARTMENT ASSISTANT III
BUDGETED
PROPOSAL
Staff decrease of a Department Assistant III due to budget reductions in HUD funding and a
limited Administrative budget. This will result in the layoff of the DA III (receptionist position) at
Office of Neighborhood Development Services.
IMPACTS
1. Fiscal Impact - Cost reductions for 2015 budget of $52,300.
2. Proposed Funding Source - CDGB.
3. Public Impact - Slight impact to public assistance at the receptionist counter. The front
office counter will be monitored and citizen walk-ins will be addressed by other staff as
needed.
4. Personnel Impact - Reduction of one FTE. The position will be eliminated at this time, with
the hope that when Federal funding from HUD increases enough to support the position
again at some point in the future, it can be reinstated.
5. Required Changes in City Regulations or Policies - None.
6. Legal Constraints, if applicable - Reduction in Force (RIF) Civil Service rules.
7. Viable Alternatives - No viable alternatives within the foreseeable future, unless Federal
HUD entitlements are increased or the present "Administrative cap" is raised or lifted by
HUD.
Strategic Initiatives • Section IV - 27
COMMUNITY DEVELOPMENT / PLANNING
2015 STRATEGIC INITIATIVE
COMPREHENSIVE PLAN UPDATES
BUDGETED
PROPOSAL
In 2015, the Planning Division requests funding to support 2 professional service contracts for the
Comprehensive Plan Update project. To remain in compliance with the State's Growth
Management Act, the Comprehensive Plan and Transportation Plan must be completed and
adopted by June of 2017. We anticipate a total of $90,000 will be required in 2015 and an additional
$120,000 in 2016 to support both the Transportation Plan and the Comprehensive Plan contracts,
with the costs being split between Planning and Streets & Traffic Engineering Divisions.
It is anticipated that these services will be provided by two different consultants. Support for these
projects is anticipated to begin mid -year 2015 and continue through the end of 2016. This schedule
relies on City staff and the Planning Commission to provide the basic outline, inventory and
community engagement work for the project. Professional services are required for technical
analysis and development of alternatives, recommendations and policy development.
The Transportation Plan will be a joint project with our Engineering Division and the Streets Division.
Other chapters, such as the Capital Facility Element, Parks, Utilities, Housing, and Natural
Environment will be developed by city staff. The addition of two specific professional service contracts
for this project should assist in providing a timely completion and submittal to the State for review.
IMPACTS
1. Fiscal Impact -
General Fund
Streets Fund
Comprehensive Plan Update
Transportation Plan Update
2015 2016
$45,000 $60,000
45,000 60,000
$90,000 $120,000
2. Proposed Funding Source - General Fund and Streets Operating Fund.
3. Public Impact -Public participation is a critical and required component for the
Comprehensive Plan update.
4. Personnel Impact -The City recently hired a Senior Planner to be project manager of the
required plan updates, as well as develop the core components of the documents.
5. Required Changes in City Regulations or Policies - None.
6. Legal Constraints, if applicable - State and Federal grant funding depend upon the City
maintaining compliance with the Growth Management Act.
7. Viable Alternatives - Add a position to the Planning Division.
28 - Section 1V • Strategic Initiatives
COMMUNITY DEVELOPMENT / CODE ADMINISTRATION/ONDS
2015 STRATEGIC INITIATIVE
TRANSFER CODE COMPLIANCE BUDGET BACK TO GENERAL FUND
BUDGETED
PROPOSAL
During the Great Recession, tax revenue dropped, and many difficult decisions were made
concerning staffing levels. In order to keep the Code Compliance program budget intact, the City
reviewed funding options, and found that Code Compliance is an eligible expense for Community
Development Block Grant (CDBG) budget. Of the three positions, 2.5 were then funded by a CDBG
program in the ONDS budget.
Now the table has turned -- General Fund tax revenues are experiencing growth, while the CDBG
program has been shrinking due to budget pressures at the Federal level. This proposal is to phase
the Code Compliance program back into General Fund over the next three years (2015-2017). The
total program reimbursement by CDBG is $178,000 in 2014, proposed to be reduced by $55,000 in
2015, another $60,000 in 2016, and a final $63,000 in 2017.
IMPACTS
1. Fiscal Impact -
Year Amount Cumulative
2015 $55,000 $55,000
2016 60,000 115,000
2017 63,000 178,000
2. Proposed Funding Source - General Fund -Codes Administration.
3. Public Impact - May free up limited CDBG funds for other community improvement
programs, if the funding levels stabilize.
4. Personnel Impact - No change -the Code Compliance Officers remained under Code
Administration supervision—this was simply a funding change.
5. Required Changes in City Regulations or Policies - None.
6. Legal Constraints, if applicable - CDBG programs have a public review process.
7. Viable Alternatives - None.
Strategic Initiatives • Section IV - 29
COMMUNITY DEVELOPMENT / CODE ADMINISTRATION
2015 STRATEGIC INITIATIVE
CITY HALL IMPROVEMENTS
BUDGETED
PROPOSAL
Yakima City Hall was built in 1949 and has had few upgrades made to the building over the past
six decades. In 2014 improvements were made to the first floor of City Hall. It is proposed that in
2015 several customer -focused interior improvements be made to the second floor of City Hall in
order to update both the appearance and functionality, including consideration of ADA access for
all the public areas.
Along with the upgrades to the second floor, it is necessary to replace both elevators. The
mechanical components are original to the building, and have been breaking rather frequently.
Delays have also been experienced in obtaining replacement parts, as they are not readily
obtainable because of the age of the elevator.
IMPACTS
1. Fiscal Impact - Replacing 2 elevators $345,000
ADA & Other Updates/2nd Floor 95,000
Total Budget $440,000
2. Proposed Funding Source - Real Estate Excise Tax (REET) 1 Fund (342).
3. Public Impact - Appropriate ADA access to the second floor and to service counters. A
sense of pride in a better functioning City Hall. May be some inconvenience during
construction.
4. Personnel Impact - Managing contracts and staging the work.
5. Required Changes in City Regulations or Policies - None.
6. Legal Constraints, if applicable - Follow proper purchasing procedures.
7. Viable Alternatives - Increase or reduce project scope.
30 - Section 1V • Strategic Initiatives
POLICE
2015 STRATEGIC INITIATIVE
ADD TWO POLICE OFFICERS FOR FEDERAL TASK FORCES
BUDGETED
PROPOSAL
The Yakima Police Department is working to stretch our resources and increase effectiveness by
entering into task force agreements with various federal agencies. These task forces allow the
Department to leverage the resources of the Federal agencies, and allows for Federal prosecution of
violent offenders. In order to maximize the benefit of the partnership, the Police Department is
proposing the addition of two (2) Police Officer positions to be the Department's liaison to the
Alcohol, Tobacco and Firearms (ATF) and Homeland Security federal task forces.
IMPACTS
1. Fiscal Impact — $173,500.
2. Proposed Funding Source — General fund.
3. Public Impact — This initiative would improve public safety by prosecuting offenders
through Federal court, which results in longer prison sentences for offenders.
4. Personnel Impact — This initiative would increase the number of police officers by two (2)
positions.
5. Required Changes in City Regulations or Policies — None.
6. Legal Constraints, if applicable - None.
7. Viable Alternatives — Continue investigations, arrests and prosecution on the local level.
Strategic Initiatives • Section IV — 31
POLICE
2015 STRATEGIC INITIATIVE
RECLASSIFY 4 POLICE OFFICER POSITIONS TO CORPORAL
BUDGETED
PROPOSAL
The Yakima Police Department has implemented a career development and succession plan over
the past year. The creation of a corporal position adds a level of leadership between the Police
Officer and Police Sergeant ranks. This would reorganize the patrol division, potentially reducing
overtime by having a corporal assigned to each patrol squad. The corporal would be available to
assume supervisory duties in the absence of the sergeant, rather than hiring another sergeant on
overtime to cover the shift.
IMPACTS
1. Fiscal Impact — $25,000.
2. Proposed Funding Source — General fund.
3. Public Impact - This initiative would improve public trust and accountability by continuing
to enhance the career development and professionalism of our officers and the department.
It also increases effectiveness of the department by having more first line supervisors
available in critical situations.
4. Personnel Impact - This initiative would not increase the total number of commissioned
officers.
5. Required Changes in City Regulations or Policies — None.
6. Legal Constraints, if applicable — None.
7. Viable Alternatives - Continue with the current patrol division structure.
32 - Section IV • Strategic Initiatives
POLICE
2015 STRATEGIC INITIATIVE
ADD ONE POLICE PUBLIC INFORMATION OFFICER
BUDGETED
PROPOSAL
The Yakima Police Department proposes a reorganization that removes the Public Information
Officer (PIO) duties from a command level officer and instead assigns them to a new dedicated
civilian position. A dedicated PIO will allow the department to be more proactive in garnering the
public's assistance and support through positive and effective information dissemination.
IMPACTS
1. Fiscal Impact — $63,600.
2. Proposed Funding Source — General Fund.
3. Public Impact - This initiative would improve public trust and accountability by providing
positive, relevant and timely information to the public.
4. Personnel Impact - This initiative would increase the noncommissioned staff by one (1).
5. Required Changes in City Regulations or Policies - Development of the job description
through the Civil Service process and placement into the Master Pay Ordinance.
6. Legal Constraints, if applicable — None.
7. Viable Alternatives — None.
Strategic Initiatives • Section IV - 33
POLICE
2015 STRATEGIC INITIATIVE
RECLASSIFY 4 SERVICES SPECIALISTS TO LEAD SERVICE SPECIALISTS
BUDGETED
PROPOSAL
The Yakima Police Department is proposing the reclassification of four Police Services Specialist
positions designating them as Lead positions. Implementing this change will provide structure
within the division that better aligns with the recent reorganization of the Police Services Division.
It will increase operational efficiency and accountability. The lead positions will work with the
Manager to develop and implement procedures that encourage consistency and ensure the smooth
operation of all units within the Division.
IMPACTS
1. Fiscal Impact - $28,000.
2. Proposed Funding Source - General Fund.
3. Public Impact - Increase in customer service and accountability.
4. Personnel Impact - Provide defined structure within the Division that will streamline
operations, increase efficiency and establish accountability. It will provide an avenue to
prepare for succession planning by developing leadership abilities and the opportunity to
use them.
5. Required Changes in City Regulations or Policies - Development of the job description
through the Civil Service process and placement into the Master Pay Ordinance.
6. Legal Constraints, if applicable - None.
7. Viable Alternatives - None.
34 - Section IV • Strategic Initiatives
POLICE
2015 STRATEGIC INITIATIVE
YAKIMA COUNTY RANGE AGREEMENT
BUDGETED
PROPOSAL
The Yakima Police Department proposes to work cooperatively with the Yakima County Sheriff's
Office to share range space. YCSO has recently opened a new state of the art range facility in the
East Valley area. Currently the Police Department contracts with a private provider and the U.S.
Army for range space and it can be challenging to find available opening in their range schedules to
accommodate our personnel.
IMPACTS
1. Fiscal Impact — $150,000.
2. Proposed Funding Source — General Fund.
3. Public Impact - This initiative would improve public safety as well as public trust and
accountability by providing the highest quality firearms training to officers.
4. Personnel Impact — None.
5. Required Changes in City Regulations or Policies — None.
6. Legal Constraints, if applicable — None.
7. Viable Alternatives - Continue with current contract with Yakima Range Conservancy and
U.S. Army.
Strategic Initiatives • Section IV - 35
POLICE
2015 STRATEGIC INITIATIVE
REPLACE JAIL CONTROL PANEL
BUDGETED
PROPOSAL
The jail control panel controls all doors, speakers, and access points in the jail. The current panel is
almost 20 years old. The manufacturer is no longer in business and replacement parts are not
available. The current system frequently breaks down and must be repaired by the City Electronics
Technicians. A new panel would interface with the jail video system and would modernize the jail
operation.
IMPACTS
1. Fiscal Impact - $165,000.
2. Proposed Funding Source - Law and Justice Capital fund.
3. Public Impact - This initiative would improve public safety by modernizing the jail
operation, providing additional security for citizens visiting the jail, inmates, and staff.
4. Personnel Impact - None.
5. Required Changes in City Regulations or Policies - None.
6. Legal Constraints, if applicable - None.
7. Viable Alternatives - Continue with the current control panel and repair as long as
possible.
36 - Section IV • Strategic Initiatives
POLICE
2015 STRATEGIC INITIATIVE
LIVE SCAN FINGERPRINTING SYSTEM
BUDGETED
PROPOSAL
Washington State Patrol has advised all agencies responsible for processing concealed pistol
permits (CPL's) that consideration is being given to making it mandatory for fingerprints to be
submitted electronically rather than on ink cards. The Services Division processes 2000+ fingerprint
cards on an annual basis for various reasons. Currently, the department does not have the
equipment needed to provide electronic fingerprinting services. Live Scan systems require an
initial investment for the purchase of the equipment, staff training, etc. as well as on-going
maintenance and service fees.
In spring of 2015, we will have the opportunity to apply for grant funding through the National
Criminal History Improvement Program (NCHIP). The grant was established with the goal of
improving the Nation's safety and security by enhancing the quality, completeness, and
accessibility of criminal history record information by insuring the nationwide implementation of
criminal justice and noncriminal justice background check systems. NCHIP is a competitive grant
program that if awarded requires the entity to provide a 10% match in cash or in-kind services. It is
our intent to apply for grant funding to implement this program.
IMPACTS
1. Fiscal Impact - The estimated total project cost is $50,000 - $70,000. If awarded grant
funding with a 10% match requirement, the approximate cost to the City will be $5,000 -
$7,000. These numbers are rough estimates. Actual quotes on equipment, maintenance
agreements and training costs are currently being solicited.
2. Proposed Funding Source - Law and Justice Capital Fund -- 90% of the funding would be
covered by the NCHIP grant if we are successful in obtaining an award.
3. Public Impact - Increase in customer service. Reduce wait/turnaround times.
4. Personnel Impact - Increase in efficiency. Streamline workflow and reduced postage
expense of mailing hardcopy fingerprint cards.
5. Required Changes in City Regulations or Policies — None.
6. Legal Constraints, if applicable - None.
7. Viable Alternatives — None.
Strategic Initiatives • Section IV - 37
POLICE
2015 STRATEGIC INITIATIVE
RADIO REPLACEMENT PROGRAM
BUDGETED
PROPOSAL
There is no current plan in place to replace police portable radios on a set cycle. The department
wishes to implement a 10 year radio replacement cycle. Ten percent of the total radio needs of the
department would be replaced each year. The exact number of radios needed may vary from year
to year due to changes in staffing levels.
IMPACTS
1. Fiscal Impact - Varies, average about $15,000 yearly.
2. Proposed Funding Source - Law and Justice Capital fund #333.
3. Public Impact - This initiative would improve public safety by providing the officers with
adequate and reliable equipment. It would increase officer safety as well.
4. Personnel Impact — None.
5. Required Changes in City Regulations or Policies — None.
6. Legal Constraints, if applicable - None.
7. Viable Alternatives - Continue replacing only the oldest and obsolete radio units.
38 - Section IV • Strategic Initiatives
POLICE
2015 STRATEGIC INITIATIVE
COMPLETE SWAT COMMUNICATIONS SYSTEM UPGRADE
BUDGETED
PROPOSAL
Several members of the SWAT team have suffered hearing loss due to inadequate hearing/head
protection. In 2014 the Department upgraded the SWAT radios utilizing an Emergency
Management grant. This proposal would finish the integration of the communication, hearing and
head protection systems.
IMPACTS
1. Fiscal Impact — $31,000.
2. Proposed Funding Source - Law and Justice Capital fund #333.
3. Public Impact - This initiative would improve public safety by ensuring the Emergency
Response Team is able to clearly communicate and operate safely.
4. Personnel Impact — None.
5. Required Changes in City Regulations or Policies — None.
6. Legal Constraints, if applicable - None.
7. Viable Alternatives - Continue with current equipment.
Strategic Initiatives • Section IV - 39
POLICE / PUBLIC SAFETY COMMUNICATIONS
2015 STRATEGIC INITIATIVE
COMMUNICATIONS CENTER RELOCATION
BUDGETED
PROPOSAL
The Public Safety Communications Division's mission is to provide 9-1-1 call answering for the
citizens of Yakima County and provide Public Safety Dispatching for the City of Yakima and 14
other public safety agencies. The City Council recognized the need for a new public safety
communications center and the need for additional space to accommodate the Yakima Police
Department and therefore entered into an agreement through Resolution R-2014-086 with Yakima
County to move the communications center from the Richard A. Zais Jr, Center for Law and Justice
to the county Resource Center. The Interlocal Agreement R-2014-086 outlines the terms and
conditions for the bond repayment and annual maintenance for the new communication facility.
The cost of the center will be shared equally between Yakima County and the City of Yakima. The
following costs are the projected budgetary amounts needed to make the facility fully functional.
Within this budget there are specific city, county E911, and shared capital and non -capital costs
which also shared equally between the city and county. The anticipated annual bond repayment for
the city of Yakima is budgeted to be $211,000 and the annual maintenance and lease of the building
is expected to be $64,000.00. (Since the building won't be in service until after construction, the
2015 budget includes $32,000 representing 6 months of lease payments). Note: the County hasn't
yet issued the bonds, so this is still an estimate. In addition to relocating the E911 systems the city
must relocate the public safety communication equipment, which is estimated to be $970,917 with
$250,000 coming out of the fund balance (which has been built over the past few years in
anticipation of this need); and the balance of $720,000 being funded by an interfund loan.
IMPACTS
1. Fiscal Impact - General Fund Transfer
Estimated Debt Service $211,000
6 months Lease Payments 32,000
Interfund Loan Payment 57,000
Total General Fund Transfer $300,000
Public Safety/Communications Fund
Estimated Debt Service $211,000
6 months Lease Payments 32,000
Interfund Loan Payment 57,000
Equipment Purchase 970,917
Total General Fund Transfer $1,270,917
2. Proposed Funding Source -Public Safety Communications Fund # 151; General fund
Transfer increased by $300,000. The Five -Year Financial Plan anticipated this annual
contribution growing to $350,000 in 2016, which will be used for the full annual lease, with
the balance being used for the interfund loan repayment.
40 - Section 117 • Strategic Initiatives
3. Public Impact - More modern 9-1-1 and Dispatch call center.
4. Personnel Impact - Managing the County contract and the move.
5. Required Changes in City Regulations or Policies — None.
6. Legal Constraints, if applicable — Formalize the Interfund Loan.
7. Viable Alternatives — None.
Strategic Initiatives • Section IV — 41
FIRE
2015 STRATEGIC INITIATIVE
FIRE ENGINE
BUDGETED
PROPOSAL
Consistent with a council -approved apparatus replacement strategy beginning in 2009, this new fire
apparatus would be placed in front-line service - triggering an ongoing cycle consisting of:
➢ 12 years of front-line service
➢ 5 years of reserve service (backup)
➢ Surplus from the fleet.
During this attrition cycle, upon placing the new engine into service, a 2003 model would move
from front-line service into reserve service, and a 1991 model that has far outlived its useful lifespan
would be scheduled for surplus. Accordingly, this does not represent a net gain of fire apparatus to
the fleet.
Taking into account specification writing and construction time, it will take up to 18 months from
the beginning of this project until delivery and in-service time. Accordingly, with the possible
exception of the City taking advantage of a chassis pre -payment discount in mid to late 2015, most
or all of the funds would not be necessary until early 2016.
IMPACTS
1. Fiscal Impact - Apparatus is expected to cost $450,000: $48,000 annual debt service over a
10 -year term starting in 2016.
2. Proposed Funding Source - Fire Capital Fund #332. Since capital replacement funds are not
available for an outright purchase, the City can again use the Washington State Local
Option Capital Asset Lending (LOCAL) lease/purchase program to take advantage of lower
interest rates. General Fund would make the debt service payments.
3. Public Impact -Enhances reliability of front-line apparatus.
4. Personnel Impact -Newer apparatus have enhanced safety features.
5. Required Changes in City Regulations or Policies - None.
6. Legal Constraints, if applicable - Ordinance to enter into a debt transaction.
7. Viable Alternatives - None.
42 - Section 1V • Strategic Initiatives
FIRE
2015 STRATEGIC INITIATIVE
LADDER TRUCK
BUDGETED
PROPOSAL
The older of the City's two ladder trucks - a 102' LTI aerial platform, is a 1995 model year. With its
elevated water stream, this apparatus has been crucial in controlling the spread of countless fires in
the City, throughout the upper valley and beyond. At 20 years of age, the lifespan of this apparatus
is coming to a close. Although it has served the community well, the dependability/reliability is
diminishing, and the personnel safety features are lagging by a few generations.
This would be a replacement, and does not constitute a net increase of apparatus.
Though this 1995 apparatus has outlived its usefulness to the City of Yakima, it retains some resale
value for a smaller fire department with less demands and call volume.
Taking into account specification writing and construction time on such a significant venture, it will
take up to 18 months from the beginning of this project until delivery and in-service time.
IMPACTS
1. Fiscal Impact - Truck is expected to cost $1,150,000: estimated $123,000 annual debt service
over a 10 -year term, starting in 2016.
2. Proposed Funding Source - Fire Capital Fund #332. Since capital replacement funds are not
available for an outright purchase, the City can again use the Washington State Local
Option Capital Asset Lending (LOCAL) lease/purchase program to take advantage of lower
interest rates. General Fund would make the debt service payments.
3. Public Impact -Enhances reliability of front-line apparatus.
4. Personnel Impact -Newer apparatus have enhanced safety features.
5. Required Changes in City Regulations or Policies - None.
6. Legal Constraints, if applicable - Ordinance to enter into a debt transaction.
7. Viable Alternatives - None.
Strategic Initiatives • Section IV - 43
FIRE
2015 STRATEGIC INITIATIVE
PURCHASE TWO STAFF VEHICLE REPLACEMENTS
BUDGETED
PROPOSAL
This proposal is for the purchase of two Ford F250 pickup trucks to be utilized by the training
division. These pickups will replace (no net gain) two high -use vehicles that were re -purposed to
the training division - following their initial assignments.
These modest pickups will be used for hauling training props, fire hose, breathing apparatus and
other equipment. They will be equipped with emergency lights/sirens and radios, and used during
the 8-5 workweek as emergency response units to augment the incident command structure. These
vehicles will be capable of pulling one of several trailers used by YFD, as well as mounting plows
for snow removal - when necessary.
If successful, one of the current training vehicles - a mid -1990's Ford F150 pickup - is planned to be
re -purposed to City Hall's Building Superintendent.
IMPACTS
1. Fiscal Impact - Vehicles are expected to cost $90,000 including safety equipment: estimated
$16,800 annual debt service over a 6 -year term, starting in 2016.
2. Proposed Funding Source - Fire Capital Fund #332. Since capital replacement funds are not
available for an outright purchase, the City can again use the Washington State Local
Option Capital Asset Lending (LOCAL) lease/purchase program to take advantage of lower
interest rates. General Fund would make the debt service payments.
3. Public Impact -Enhances reliability of required equipment.
4. Personnel Impact -Newer vehicles with fewer maintenance issues.
5. Required Changes in City Regulations or Policies - None.
6. Legal Constraints, if applicable - Ordinance to enter into a debt transaction.
7. Viable Alternatives - None.
44- Section IV • Strategic Initiatives
FIRE
2015 STRATEGIC INITIATIVE
REHAB / BREATHING AIR RESOURCE UNIT
BUDGETED
PROPOSAL
The most recent update of the Washington Administrative Code (WAC) includes significant
changes and requirements in emergency scene firefighter rehabilitation. With the current rehab and
air units each being deployed and operated by a small cadre of our Reserves, and because of the
lack of personnel to deploy both units, incident commanders are forced choose between the most
time -sensitive need. The desired combined unit would serve to consolidate two older, smaller,
single -purpose vehicles into one more capable and efficient vehicle.
IMPACTS
1. Fiscal Impact - $75,000: estimated $14,000 annual debt service over a 6 -year term, starting in
2016.
2. Proposed Funding Source - Fire Capital Fund #332. Since capital replacement funds are not
available for an outright purchase, the City can again use the Washington State Local
Option Capital Asset Lending (LOCAL) lease/purchase program to take advantage of lower
interest rates. General Fund would make the debt service payments.
3. Public Impact -Enhances reliability of required equipment.
4. Personnel Impact -Newer equipment with fewer maintenance issues.
5. Required Changes in City Regulations or Policies - None.
6. Legal Constraints, if applicable - Ordinance to enter into a debt transaction.
7. Viable Alternatives - None.
Strategic Initiatives • Section IV - 45
FIRE
2015 STRATEGIC INITIATIVE
FIRE RESCUE BOAT / TECH RESCUE UNIT
BUDGETED
PROPOSAL
This slightly untraditional capital request is focused upon the City of Yakima (City) purchasing
Yakima County Fire District 11's (Broadway) interest in, and becoming the sole owner of:
➢ 1 Wooldridge Rescue Boat
➢ 1 Technical Rescue truck (refurbished beverage truck)
Although the City is co-owner with District 11 of the Wooldridge Rescue Boat, District 11 has sole
ownership of the Technical Rescue truck - yet that vehicle is housed, maintained and operated by
the City (YFD). Over the years, the co -ownership of the boat and YFD's stewardship of the truck
have proven problematic in a few different areas:
➢ There continues to be disagreement over which entity is responsible for operational costs
and repairs.
➢ Deployment - geographical deployment areas are frequently a topic of disagreement, and
policy designed to help contain out -of -the -area and unfunded overtime costs cannot be
definitively identified.
➢ As the keeper of both units, the City ends up providing a heavy subsidy to the greater
Yakima County area.
Sole ownership of this equipment would provide the necessary controls over deployment of this
equipment, and potentially provide the means for cost recovery for out -of -jurisdiction response and
mitigation.
IMPACTS
1. Fiscal Impact - $40,000.
2. Proposed Funding Source - Fire Capital Fund #332.
3. Public Impact -Enhances deployment of critical safety equipment.
4. Personnel Impact -City staff can make decisions on equipment deployment.
5. Required Changes in City Regulations or Policies - None.
6. Legal Constraints, if applicable - Proper title transfer.
7. Viable Alternatives - None.
46 - Section IV • Strategic Initiatives
AIRPORT
2015 STRATEGIC INITIATIVE
MAINTENANCE VEHICLE REPLACEMENT - 2 TRUCKS
BUDGETED
PROPOSAL
Yakima Air Terminal staff provides the aviation industry a variety of services to include airport
management/administration, airfield/terminal maintenance, snow removal operations, hazardous
wildlife management, airport security, and heavy equipment repairs. In order to provide these
critical services, the airport is required to maintain an appropriate fleet of equipment to ensure the
airport remains operational within Federal Aviation Administration standards. As equipment
within the airport's fleet continues to age it is recommended that the two 1989 airport maintenance
vehicles which have outlived its useful life be replaced.
IMPACTS
1. Fiscal Impact — $55,000.
2. Proposed Funding Source - Yakima Air Terminal Operating Fund.
3. Public Impact - Equipment will allow airport staff to continue to complete required daily
airfield/maintenance functions to ensure the airport remains in compliance with Federal
Aviation Administration standards.
4. Personnel Impact - Reliable equipment.
5. Required Changes in City Regulations or Policies - None.
6. Legal Constraints, if applicable - Airport will follow applicable purchase requirements as
outlined by the Purchasing Department.
7. Viable Alternatives - None.
Strategic Initiatives • Section IV - 47
AIRPORT
2015 STRATEGIC INITIATIVE
21sT AVE ROAD EXTENSION
BUDGETED
PROPOSAL
The Yakima Air Terminal is an integral part of the City's transportation system and economic
development infrastructure. The airport continues to see growth in a variety of areas to include
passengers utilizing airline service, cargo operations and the need for additional hangar
development. As outlined in the Draft Airport Master Plan, it is recommended the South Air Park
area located at 21st Avenue and Ahtanum Road continue to be a focal point for further Corporate
and General Aviation expansion. In order to facilitate additional hangars, the airport
administration in conjunction with airport stakeholders has met to discuss infrastructure
improvements to meet the airport's aviation demands.
One key improvement is to extend 21st Avenue to provide direct vehicle access to the airfield. This
300 foot extension of 21st Avenue will provide public access to facilitate future development of
Corporate, General Aviation hangars, and aviation related businesses. This project is slated to
begin in Spring/Summer of 2015 and is expected to be completed by Fall 2015.
IMPACTS
1. Fiscal Impact — $175,000.
2. Proposed Funding Source — Arterial Street Fund.
3. Public Impact - The 21st Avenue extension will allow direct public access to the south end
of the Yakima Air Terminal which will allow further development as well as a consistent
access point for all vehicle traffic.
4. Personnel Impact — None.
5. Required Changes in City Regulations or Policies — None.
6. Legal Constraints, if applicable - Airport administration will work with City Engineering
Department to ensure road is designed and developed to standards.
7. Viable Alternatives - None.
48 - Section 117 • Strategic Initiatives
UTILITIES & ENGINEERING / ENGINEERING
2015 STRATEGIC INITIATIVE
YAKIMA RAILROAD GRADE SEPARATIONS PROJECT AESTHETICS AND LINCOLN
AVENUE ELEVATED SIDEWALK
BUDGETED
PROPOSAL
Construction of the Yakima Railroad Grade Separations project aesthetics, the "Bins of Light" will
be installed in 2015. The location of the "Bins of Light" will be on Lincoln Avenue just east of Front
Street. The estimated cost of this work is $350,000. An elevated sidewalk will also be installed on
the south side of Lincoln between 1St Street and 1St Avenue. The estimated cost of this work is
$250,000. These are the final components of the railroad underpass project.
IMPACTS
1. Fiscal Impact $600,000 of remaining local funds will be used to install the "Bins of Light"
and construct an elevated sidewalk on Lincoln Avenue.
2. Proposed Funding Source - Cumulative Reserve for Capital Improvement Fund #392.
Local Funds (BNSF's contribution to the total project).
3. Public Impact - Installation of the "Bins of Light" will result in lane closures and possibly a
full road closure during placement. Construction of the elevated sidewalk will require that
the inside lane be closed during construction. Inconveniences will be minimized as much as
possible.
4. Personnel Impact - The engineering and project construction responsibilities will be
performed by the Engineering Division.
5. Required Changes in City Regulations or Policies - None.
6. Legal Constraints, if applicable - None.
7. Viable Alternatives - None.
Strategic Initiatives • Section IV - 49
UTILITIES & ENGINEERING / ENGINEERING
2015 STRATEGIC INITIATIVE
NORTH 1ST STREET REVITALIZATION
BUDGETED
PROPOSAL
The design of the revitalization of North 1St Street from Martin Luther King, Jr. Boulevard (MLK) to
'N' Street will be completed in 2015 and the relocation of the overhead utilities will begin in 2015.
The revitalization will consist of installing and upgrading streetscape elements of this section of
North 1St Street to improve safety and attract development. The overhead utilities will either be
placed underground or moved back to another off-street.
IMPACTS
1. Fiscal Impact - $1,300,000 will be expended in 2015 to design this section of North 1St Street
and to begin relocation of overhead utilities.
2. Proposed Funding Source - Cumulative Reserve for Capital Improvement Fund #392.
Balance of local funds from the railroad underpass projects, including the legal settlement
from the Lincoln Ave cost overrun.
3. Public Impact - Impacts to the public should be minimal during design and overhead
utility relocation. Public meetings will be held to receive input from the public. Once road
construction begins, it is anticipated that traffic will be limited to one lane in each direction.
4. Personnel Impact - The engineering design work will be done by a consultant with the
Engineering Division providing project management.
5. Required Changes in City Regulations or Policies - None.
6. Legal Constraints, if applicable - Contract for project design.
7. Viable Alternatives - None.
50 - Section 117 • Strategic Initiatives
PUBLIC WORKS / WASTEWATER
2015 STRATEGIC INITIATIVE
WASTEWATER CAPITAL PROGRAM
BUDGETED
PROPOSAL
Major capital projects planned for the 2015 budget cycle are:
Wastewater Capital Programs
Speedway/Race Street Improvements $1,800,000
Toscana Development Castlevale/Fechter 350,000
Digester Project 550,000
Collection System Upgrades 500,000
Plant Security Upgrades 150,000
Congdon Sewer Main 100,000
Wastewater System Evaluation 100,000
Other Wastewater Capital Projects 1,140,000
Total $4,690,000
IMPACTS
1. Fiscal Impact — $4,690,000.
2. Proposed Funding Source — Wastewater Capital Funds.
3. Public Impact — Improved Wastewater infrastructure.
4. Personnel Impact — Project Management.
5. Required Changes in City Regulations or Policies — None.
6. Legal Constraints, if applicable — Construction contract process.
7. Viable Alternatives — None.
Strategic Initiatives • Section IV — 51
PUBLIC WORKS / WATER
2015 STRATEGIC INITIATIVE
WATER CAPITAL PROGRAM
BUDGETED
PROPOSAL
Major capital projects planned for the 2015 budget cycle are:
Water Capital Programs
Modifications to River at WTP Intake $1,000,000
Water Main Replacement — N 1St Street 1,400,000
Other Wastewater Capital Projects 100,000
Total $2,500,000
IMPACTS
1. Fiscal Impact — $2,500,000. Note: The miscellaneous category should have been $270,000,
bringing the total capital project budget to $2,670,000.
2. Proposed Funding Source — Water Capital.
3. Public Impact — Improved water infrastructure.
4. Personnel Impact — Project Management.
5. Required Changes in City Regulations or Policies — None.
6. Legal Constraints, if applicable — Construction Contracts.
7. Viable Alternatives — None.
52 — Section IV • Strategic Initiatives
PUBLIC WORKS / IRRIGATION
2015 STRATEGIC INITIATIVE
IRRIGATION CAPITAL PROGRAM
BUDGETED
PROPOSAL
Major capital projects planned for the 2015 budget cycle are:
Irrigation Capital Programs
Fruitvale Canal Diversion System $500,000
West Yakima Avenue (18th - 28th) 725,000
Main and Pump Refurbish 25,000
Total $1,250,000
IMPACTS
1. Fiscal Impact - $1,250,000.
2. Proposed Funding Source - Irrigation Capital.
3. Public Impact - Improved Irrigation infrastructure.
4. Personnel Impact - Project Management.
5. Required Changes in City Regulations or Policies — None.
6. Legal Constraints, if applicable — Construction Contracts.
7. Viable Alternatives — None.
Strategic Initiatives • Section IV — 53
PUBLIC WORKS / STORMWATER
2015 STRATEGIC INITIATIVE
STORMWATER CAPITAL PROGRAM
BUDGETED
PROPOSAL
Major capital projects planned for the 2015 budget cycle are:
Stormwater Capital Programs
N. 1St Street Revitalization Project $1,790,000
Randall Park reconstruction 50,000
Cascade Mill site 160,000
Contingency 25,000
Total $2,025,000
IMPACTS
1. Fiscal Impact - $2,025,000.
2. Proposed Funding Source - Stormwater Capital.
3. Public Impact - Improved Stormwater infrastructure.
4. Personnel Impact - Project Management.
5. Required Changes in City Regulations or Policies - None.
6. Legal Constraints, if applicable - Construction Contracts.
Viable Alternatives - None.
54 — Section 1V • Strategic Initiatives
PUBLIC WORKS / STREETS
2015 STRATEGIC INITIATIVE
SNOW BLOWER
BUDGETED
PROPOSAL
The updated Snow and Ice Control plan requires clearing of streets in the Central Business District
(CBD) within 24 hours following a snow event of three or more inches. The previous policy called
for the CBD to be cleared of snow on the first available night after clearing other arterial streets. If
snowfall was continuous or came in multiple waves within a 24-hour period, it would take two or
more nights to clear snow from the CBD. This was in part, due to the equipment used for snow
removal.
The Streets Division currently uses a 1967 Pettibone Speed Belt Loader to pick up the snow and
load it into dump trucks after snow has been plowed to the center of the road. This piece of
equipment is slow and difficult to maneuver. It has been reliable but because of its age, parts are
difficult to find and can take weeks to obtain. It also requires the dump trucks to make difficult
maneuvers to be positioned to receive the snow; requiring it to be done usually at night when there
was minimal traffic for safety.
Purchasing a Larue D55 Snow Blower which attaches to a front-end loader, gives the City the
capability of removing snow from the CBD in an estimated four to six hours compared to ten to
twelve hours with the existing equipment. This snow blower will enable City staff to remove snow
safely during the daylight hours and can be utilized on other major roads as well. Snow piles in
City owned parking lots could also be removed to eliminate loss of parking spaces following
snowstorms.
IMPACTS
1. Fiscal Impact - $175,000.
2. Proposed Funding Source - Since this is an addition to the Streets fleet, the Streets Fund is
required to fund the purchase that will be made by Equipment Rental.
3. Public Impact - The snow blower is needed to meet the goals and expectations specified in
the Snow & Ice Control Plan of clearing of streets in the Central Business District within 24
hours following a snow event of three inches or more.
4. Personnel Impact - None.
5. Required Changes in City Regulations or Policies - None.
6. Legal Constraints, if applicable - Follow proper purchasing procedures.
7. Viable Alternatives - Continue to use the Pettibone Speed Belt Loader to remove snow;
requiring road closures for snow removal operations up to 12 or more hours to clear the
CBD. Failure to remove snow piles from parking lots and from other arterial roadways.
Strategic Initiatives • Section IV - 55
PUBLIC WORKS / TRANSIT
2015 STRATEGIC INITIATIVE
TRANSIT OPERATIONS SPECIALIST
BUDGETED
PROPOSAL
Over the past several years, Transit agencies across the nation have implemented various computer
programs and technologies to best serve their customers. Complex automated ADA systems, run -
cutting software, GPS data collection activities and electronic on -board passenger information
systems are just a few of the computer/electronic technologies that exist and are being utilized by
Transit agencies such as Yakima Transit.
Currently, Yakima Transit does not have a specific position dedicated to implement and maintain
these complex systems. The City of Yakima IT Department have been a great help to us and will
continue to be in the future. However, the continual operation and maintenance required to keep
these systems running efficiently requires full time attention.
As it is today, IT personnel have devoted countless hours in an effort to assist our technological
needs as have our Transit supervisors. Unfortunately the skills and knowledge required to fully
implement and maintain our current technologies impacts and subtracts from our supervisors
primary roles and responsibilities. In the end, the Transit supervisors are not qualified to
implement and maintain the various programs and technologies. Therefore, it is proposed that a
new full-time position be created for Yakima Transit to specifically address its current technological
needs and requirements to better serve the Transit Division and its customers.
IMPACTS
1. Fiscal Impact — $76,200.
2. Proposed Funding Source — Transit Operating Fund # 462.
3. Public Impact — None.
4. Personnel Impact — This position would work as a liaison with the IT Department to
address technological needs allowing Transit supervisors to focus their full attention upon
their duties as supervisors.
5. Required Changes in City Regulations or Policies — None.
6. Legal Constraints, if applicable - New position to be approved through the Civil Service
process and placed in the Master Pay Ordinance.
7. Viable Alternatives - None.
56 - Section IV • Strategic Initiatives
PUBLIC WORKS / TRANSIT
2015 STRATEGIC INITIATIVE
PURCHASE 3 HEAVY DUTY REPLACEMENT BUSES
BUDGETED
PROPOSAL
Purchase three (3) heavy-duty low -floor buses, estimated to cost $430,000 each.
Yakima Transit is in the process of updating their fixed -route bus fleet of 26 buses. Yakima Transit
operates 19 buses at maximum capacity. Five of the 26 buses are 15 years or older (1995-1999).
Typically, buses are considered for replacement once the vehicle reaches 12 years of age (FTA
estimated useful life). Equipment rental has done a great job helping us extend the life of these
vehicles; however, sometimes the cost of maintaining the vehicle outweighs the benefit of keeping
it, especially when reliability becomes a factor or the vehicle is consistently in the shop for non-
routine maintenance. Yakima Transit intends to replace all five buses over the next two years
(three in 2015 and two in 2016) as part of their fleet and facility maintenance program. Equipment
Rental will identify which of the five (Buses 7154, 7156, 7157, 7158, & 7159) should be replaced first
based on maintenance issues, wear, and other factors.
Replacement vehicles are necessary to maintain an adequate operational fleet. As new buses are
purchased, older buses are moved into the spare fleet, where they will be used when the newer
buses are undergoing preventative maintenance or being serviced for other issues. By the time
these five buses are replaced, three more buses will have reached 12 years of age and will be
considered in the future for replacement.
IMPACTS
1. Fiscal Impact — $1,290,000.
2. Proposed Funding Source — Transit Capital Fund/Accumulated reserves of Local Sales Tax.
3. Public Impact — Allows Yakima Transit to maintain an adequate amount of operational
vehicles in stock.
4. Personnel Impact — None.
5. Required Changes in City Regulations or Policies — None.
6. Legal Constraints, if applicable — FTA has stringent rules regarding the number and
condition of the transit fleet.
7. Viable Alternatives — Procure used buses that are less expensive, yet costly to maintain and
do not provide the same level of reliability.
Strategic Initiatives • Section IV — 57
PUBLIC WORKS / REFUSE
2015 STRATEGIC INITIATIVE
ADD ONE SOLID WASTE COLLECTOR /DRIVER
Erroneously excluded from Preliminary Budget -Will be added to Final Budget
PROPOSAL
City of Yakima Refuse Division makes every effort to excel in quality solid waste management for
the 93,000 citizens of Yakima by providing weekly curbside residential garbage and yard waste
service to approximately 25,000 residential customers. The recent annexations and growth within
the City limits requires the Refuse Division to realign its current routes; requiring an additional
Solid Waste Collector/Driver to accommodate this growth.
In the last two years, three large residential annexations increased the current service area by
approximately 2,000 acres and 2,000 garbage accounts, 500 yard waste accounts and 20 bin
accounts. Providing services to this sprawling area has been very difficult with the current staffing
level. This places additional stress on equipment due to the increase in service delivery requests.
Refuse has been utilizing its Maintenance Workers to cover and assist with routes and act as fill in
drivers to cover sick days and vacations. However, coverage remains an issue and the utilization of
the Maintenance Workers as drivers reduces the ability of the Division to address service orders in
a timely fashion which has a direct impact on customer service delivery and satisfaction.
A Cost of Service/Rate Study was presented to City Council on October 28, 2014 to propose a rate
structure that will support current and proposed services within the Refuse Division. This will
include the additional Collector/Driver; allowing the Refuse Division to begin addressing existing
routing issues, realign current routes that are approaching daily haul limits, and address coverage
issues. The rate increase is in the Preliminary Budget, however, even if the rate increase is not
approved by Council, this position is still necessary to address the issues noted above.
IMPACTS
1. Fiscal Impact —$65,900.
2. Proposed Funding Source —Refuse Operating Fund #471.
3. Public Impact — Improve customer service by properly staffing the Refuse Division.
4. Personnel Impact — Additional 1.0 FTE Solid Waste Collector/Driver position.
5. Required Changes in City Regulations or Policies — None.
6. Legal Constraints, if applicable — None.
7. Viable Alternatives — Continue to operate with insufficient amount of staff; existing
coverage issues will continue, further limiting the Refuse Division's abilities to provide
consistent high-quality customer service.
58 — Section 1V • Strategic Initiatives
PUBLIC WORKS/REFUSE
2015 STRATEGIC INITIATIVE
REFUSE RATE PROPOSAL OR BUDGET REDUCTIONS
RATE PROPOSAL IS BUDGETED
PROPOSAL
At the Study Session on October 28, 2014, the Refuse Division presented the results of a recent rate
study and the recent recycling pilot program. The 2015 Preliminary Budget included rates
proposed in the rate study, which are estimated to add $386,000 of revenue to the Refuse Fund.
These rates will maintain the Refuse programs. Should the rate increase be postponed, then the
following reductions will be made in the 2015 final budget to stay within available resources:
Budget Cuts
Impacts
Costs
Operating Supplies
Delay purchasing garbage/yard waste/recycling carts. May
jeopardize matching grant opportunities
$85,000
Fall Leaf Clean Up
Program
Increase in disposal of organic material buried at the landfill.
Impaired water flow due to clogged street drains. Impact on
Street and Stormwater Departments to address clean up and
removal of leaves. Impaired road safety for motorists, cyclist
and pedestrians.
80,000
Code Enforcement
Elimination of 1 FTE (Filled). Eliminate the ability of the
Division to respond to illegal dump calls and clean up. YTD
78 illegal dumps have been cleaned; 72 ordinance violations
have been issued. Will reduce interdepartmental assistance
to YPD, Codes, Streets and ONDS. Disposal cost will be
passed onto other City Departments. Will impact cleanliness
of city and increase blight and create safety hazards.
77,000
State and Local Taxes
The utility taxes will be reduced in conjunction with the
reduction in revenue: City tax ($57,900); State tax ($17,000)
74,900
Proposed Cuts
Operating supplies and cuts in service
316,900
IMPACTS
1. Fiscal Impact - Subtract $386,000 of Revenue, and $316,900 of Expenditures from the
Preliminary Budget. After these changes the fund is using about $29,000 of reserves
bringing the ending fund balance to about $364,000 or 6.2% of the reduced expenditure
budget.
2. Proposed Funding Source - Existing Refuse Rate Structure.
3. Public Impact - Adequately funding the total Refuse programs.
4. Personnel Impact - Reduction in Force (RIF) Civil Service rules.
5. Required Changes in City Regulations or Policies - None.
6. Legal Constraints, if applicable - None.
7. Viable Alternatives - Proposed Rate adjustments
Strategic Initiatives • Section IV - 59
PUBLIC WORK / EQUIPMENT RENTAL
2015 STRATEGIC INITIATIVE
FLEET VEHICLE ADDITIONS & REPLACEMENTS
BUDGETED
PROPOSAL
Replace or increase the Equipment Rental fleet per the included listing below. Fire, Police and
Transit rolling stock are managed separately by the respective departments. Vehicle replacement is
determined by maintenance costs, usage, and technical service need.
Division
Description
Replacing
2015
Budget
Fund
Total
Parks & Recreation
Toro Groundmaster 590
ER 5238
$90,000
$90,000
Streets & Traffic
Snow blower
Addition
175,000
Poor
Replace Dump Truck Body
ER 3080
95,000
Fair / Exceeds useful life
Water
Bucket Truck - Signals
ER3149
175,000
445,000
Water
Backhoe
ER6074
150,000
Fair
Refuse
One Ton Truck
ER2275
45,000
195,000
Refuse
Automated Sideloading Refuse Truck
ER 3261
315,000
Fair / Maintenance Issues
Wastewater
Automated Sideloading Refuse Truck
ER 3262
315,000
630,000
Wastewater
Side Dumping Trailer
ER 4156
65,000
Fair
Side Dumping Trailer
ER 4157
65,000
130,000
Total
$1,490,000
The chart below details the condition of the vehicles and equipment being replaced:
Division
Description
E/R
Number
Model
Year
Condition/Application
Parks
Toro Groundsmaster 580
5238
2005
Poor / Maintenance Issues
Streets
Replace Intl Dump Truck Body
3080
1991
Poor
Int'l Bucket Truck — Signals
3149
2002
Fair / Exceeds useful life
Water
Caterpillar Backhoe
6074
2001
Fair / Exceeds useful life
Ford F250 3/4 Ton Truck
2275
2003
Fair
Refuse
Automated Sideloading Refuse Truck
3261
2009
Fair / Maintenance Issues
Automated Sideloading Refuse Truck
3262
2009
Fair / Maintenance Issues
Wastewater
Smithco Side Dumping Trailer
4156
2000
Fair
Smithco Side Dumping Trailer
4157
2000
Fair
60 — Section IV • Strategic Initiatives
IMPACTS
1. Fiscal Impact — $1,490,000 from the accumulated reserve dedicated for this purpose.
2. Proposed Funding Source — The Equipment Replacement Fund for replacements.
3. Public Impact — Delaying purchase would ultimately reduce ability to provide respective
services to the community and shift operating costs to Fleet Maintenance.
4. Personnel Impact — None.
5. Required Changes in City Regulations or Policies — None.
6. Legal Constraints, if applicable — None.
7. Viable Alternatives — Delaying these purchases is an option, though excessive maintenance
costs would shift expense to Fleet Maintenance budget.
Strategic Initiatives • Section IV — 61
PUBLIC WORK / EQUIPMENT RENTAL
2015 STRATEGIC INITIATIVE
ADD TWO MECHANIC I POSITIONS
BUDGETED
PROPOSAL
The Equipment Rental Division provides fleet services to most of the operating divisions of the City
excluding Police and Fire. The fleet consists of approximately 700 vehicles with various pieces of
construction equipment and mowers. Since 2000, the fleet size has increased nearly 25% while the
Equipment Rental staffing level has remained essentially unchanged over the same period of time.
Today's equipment is much more sophisticated than earlier models and requires a higher level of
maintenance.
Earlier this year, Hennessey Fleet Consulting was contracted to assess the current fleet maintenance
program for efficiency; focusing especially in regard to staffing level and scheduling. When
compared to 200 municipal fleets nationwide, the findings suggest that our current staffing is three
Mechanics short of the optimum staffing level for this size of fleet. A staff shortage such as this
makes it virtually impossible to maintain the fleet at the prescribed level of readiness. We
recommend at this time to bring on two additional Mechanic I positions.
IMPACTS
1. Fiscal Impact — Salary/Benefits: $137,400.
2. Proposed Funding Source —Operating Funds participating in the Equipment Rental pool.
3. Public Impact — Improve customer service by properly staffing the Equipment Rental
Division.
4. Personnel Impact — Additional 2.0 FTE Mechanic I positions.
5. Required Changes in City Regulations or Policies — None.
6. Legal Constraints, if applicable — None.
7. Viable Alternatives — Continue to operate with an insufficient staffing level to try and meet
the increasing demands of the City's fleet service; directly jeopardizing the efficiency and
timeliness of repairs, cost-effectiveness, and overall customer service.
62 — Section IV • Strategic Initiatives
PUBLIC WORKS / PARKS & RECREATION
2015 STRATEGIC INITIATIVE
SE COMMUNITY CENTER RESTROOM RESTORATION
BUDGETED
PROPOSAL
The Southeast Community Center is another City -owned facility in need of upgrades. While the
City pays a fee for management and operations of the facility, it has contributed minimally toward
facility improvements. The existing restrooms are 40 years old, in disrepair, and are beginning to
fail. In the 2014 budget the City budgeted to provide the supplies and materials needed for the
remodel along with major plumbing and electrical contractor costs, while the Opportunities
Industrialization Center (OIC), the facility's contracted operator, had agreed to contribute the
construction labor portion of the updated services. The total renovation is estimated to cost over
$100,000 if contracted out. OIC was not able to proceed with the project in 2014, so this is being
carried forward into 2015. Unfortunately, OIC is not able to allocate resources to this project, so the
full cost is being committed by the City.
IMPACTS
1. Fiscal Impact — $100,000.
2. Proposed Funding Source - split between Parks & Recreation Operating and Capital Funds.
3. Public Impact - Improved Community Center.
4. Personnel Impact - Coordinate with OIC to accomplish the needed improvements, as they
manage the facility.
5. Required Changes in City Regulations or Policies — None.
6. Legal Constraints, if applicable — None.
7. Viable Alternatives — None.
Strategic Initiatives • Section IV - 63
PUBLIC WORKS / PARKS & RECREATION
2015 STRATEGIC INITIATIVE
RANDALL PARK IMPROVEMENT
BUDGETED
PROPOSAL
Randall Park is over 40 years old and is in need of renovation. In 2010 the two wooden bridges that
led to the nature area of the park were removed due to poor condition. A committee was formed to
raise funds for the new bridges. Due to lack of donations, the project was shelved. In September of
2013 a $50,000 anonymous donation was made for improvements to Randall Park. A citizens
committee was reformed and renovation needs were identified. In December of 2013 another
anonymous donation was made for $100,000. This donation came with a challenge to the
community to match the funds. Donations continue to be received for the project. In August 2014 a
proposal was submitted to the Recreation and Conservation Office [RCO] for the State of
Washington for a grant of $500,000 for the park. The proposal ranked 8th among 70 applications
and it is very probable the project will receive the $500,000. Plans continue for the renovation of
Randall Park. Some of the components of the renovation are as follows: New parking lots, new
rest room with the possibility of an additional rest room on the 48th side of the park, new asphalt
walkways, new entrance signs, new duck pond observation deck, new playground and new picnic
shelter.
IMPACTS
1. Fiscal Impact - $900,000.
2. Proposed Funding Source - Total Project included in the Parks and Recreation Capital
Budget #331. Revenues include: Donations from individuals and organizations ($200,000),
RCO Grant ($500,000), Mid -Columbia Fisheries Enhancement Group grant, In-kind
donations, Stormwater Funds ($50,000), Parks Capital transfer ($50,000) and REET 1
($100,000).
3. Public Impact - The public will be able to better utilized Yakima's favorite park facilities.
4. Personnel Impact - City of Yakima personnel will complete some of the labor for the park
improvements. E.g. The Streets Division will pave the parking lots and walkways. Park
Maintenance staff will repair and replace irrigation as needed.
5. Required Changes in City Regulations or Policies - None.
6. Legal Constraints, if applicable - Grant contracts, proper purchasing
procedures/coordination with community service clubs.
7. Viable Alternatives - Delay renovations.
64 - Section IV • Strategic Initiatives
Three -Year Budget Comparison
Three -Year Budget Comparison • Exhibits -1
THREE-YEAR BUDGET COMPARISON - 2015 BUDGET BY CITY FUNCTIONAL GROUPING
2013 2014 2014 2015 2015 2015 2015 2015 2015
Actual Amended Year -End Proposed vs 2014 Projected Use of Beginning Est. Ending
Expenditures Budget Estimate Expenditures Estimate Revenue Reserves Fund Balance Fund Balance
General Government
City Management $366,983 $372,684 $370,196 $383,893 3.7%
Indigent Defense 541,656 650,500 650,500 1,000,500 53.8%
City Council 286,511 290,199 291,163 286,735 (1.5%)
City Clerk/Records 437,577 583,921 583,485 593,216 1.7%
Human Resources 442,846 513,151 559,444 664,003 18.7%
Legal 1,247,205 1,359,323 1,370,353 1,516,206 10.6%
Municipal Court 1,330,831 1,344,118 1,333,646 1,370,533 2.8%
Planning 517,298 497,481 476,414 581,384 22.0%
Code Administration 1,381,740 2,639,371 2,649,654 1,683,102 (36.5%)
City Hall Maintenance 360,378 422,885 399,221 524,298 31.3%
Economic Development 503,185 511,733 449,242 677,329 50.8%
Police 25,830,291 26,278,167 25,915,548 26,687,333 3.0%
Fire 9,709,330 10,387,649 10,312,002 10,680,888 3.6%
Gang Free Initiative - 333,105 330,972 230,820 (30.3%)
Emergency Preparedness - - 9,500 212,246 n/a
Information Systems 2,298,015 3,047,612 2,953,110 2,893,070 (2.0%)
Intergovernmental 260,749 244,031 244,031 174,989 (28.3%)
Transfers 3,019,305 4,942,275 4,442,275 5,543,875 24.8%
Nonrecurring Expenses - (950,000) - (1,025,000) n/a
Financial Services 1,461,274 1,488,836 1,514,908 1,601,125 5.7%
State Examiner 103,729 110,000 110,000 110,000 0.0%
Police Pension 1,344,773 1,343,325 1,174,237 1,219,900 3.9%
Utility Services 1,405,941 1,465,199 1,421,634 1,582,844 11.3%
Purchasing 549,153 549,369 559,132 654,699 17.1%
Engineering 654,156 1,109,632 845,776 890,530 5.3%
Total General Fund $54,052,924 $59,534,570 $58,966,443 $60,738,516 3.0% 61,061,259 322,742 8,374,076 8,696,818
Parks & Recreation 4,261,347 4,556,548 4,545,867 4,713,152 3.7% 4,709,455 (3,697) 556,239 552,542
Street & Traffic Operations 5,225,208 4,821,409 4,814,188 5,049,379 4.9% 4,718,610 (330,769) 997,502 666,733
Total General Government Funds $63,539,479 $68,912,527 $68,326,497 $70,501,047 3.2% 70,489,324 (11,724) 9,927,817 9,916,093
2 — Exhibits • Three -Year Budget Comparison
Other Operating/Enterprise
Economic Development
Community Development
Community Relations
Cemetery
Emergency Services
Public Safety Communications
Police Grants
Downtown Improvement District
Trolley (Yakima Interurban Lines)
Front St Business Impr Area
Tourist Promotion (Cony Ctr)
Capitol Theatre
PFD Revenue -Convention Center
Tourist Promotion Area
PFD Revenue -Capitol Theatre
Airport Operating Fund
Stormwater Operating
Transit
Refuse
Wastewater Operating
Water Operating
Irrigation Operating
Equipment Rental
Environmental Fund
Public Works Administration
Total Other Operating/Enterprise
2013
Actual
Expenditures
2014 2014 2015 2015 2015 2015 2015
Amended Year -End Preliminary vs 2014 Projected Use of Beginning
Budget Estimate Budget Estimate Revenue Reserves Fund Balance
2015
Est. Ending
Fund Balance
$279,489
1,856,349
912,037
236,530
1,173,571
3,256,565
837,871
257,863
15,921
6,368
1,428,327
347,771
682,472
643,696
516,772
754,569
2,063,834
7,717,943
5,656, 791
19,461,184
8,539,064
1,498,594
5,930,216
48,077
1,106,896
$456,622 $456,622 $235,766 (48.4%) $222,000 ($13,767) $54,866 $41,099
3,120,096 3,109,287 1,479,188 (52.4%) 1,474,337 (4,851) 685,166 680,315
601,850 589,455 612,510 3.9% 596,600 (15,911) 547,378 531,467
278,900 269,920 292,795 8.5% 264,950 (27,845) 49,291 21,446
1,339,282 1,309,446 1,312,692 0.2% 1,290,026 (22,666) 183,768 161,102
3,219,521 2,943,359 4,438,988 50.8% 4,095,799 (343,189) 754,237 411,048
469,024 435,624 475,296 9.1% 484,000 8,704 307,019 315,723
244,358 232,750 197,500 (15.1%) 197,840 340 5,270 5,610
166,850 116,501 57,046 (51.0%) 53,624 (3,422) 26,104 22,682
9,000 5,000 7,000 40.0% 3,735 (3,265) 4,410 1,145
1,483,667 1,483,667 1,628,854 9.8% 1,693,250 64,396 544,155 608,551
342,020 342,020 396,540 15.9% 395,250 (1,290) 26,387 25,097
645,000 640,000 748,220 16.9% 816,750 68,530 407,215 475,745
687,000 650,000 687,000 5.7% 687,000 73,324 73,324
531,000 563,430 608,220 7.9% 618,700 10,480 135,692 146,172
1,130,293 1,083,863 1,099,571 n/a 1,108,889 9,319 1,879 11,198
2,325,519 2,315,822 3,444,953 48.8% 2,151,000 (1,293,953) 1,299,362 5,409
8,240,033 7,989,823 8,581,402 7.4% 8,519,226 (62,176) 1,280,164 1,217,988
5,864,823 5,846,975 6,114,871 4.6% 6,220,599 105,728 287,550 393,278
20,363,432 20,282,066 20,893,684 3.0% 21,431,302 537,619 2,997,144 3,534,763
9,022,649 8,909,509 9,359,410 5.0% 8,876,000 (483,410) 2,865,962 2,382,552
2,063,884 1,828,565 1,791,819 (2.0%) 1,766,200 (25,619) 876,723 851,104
5,671,800 5,330,898 5,411,876 1.5% 5,612,858 200,982 4,413,523 4,614,505
192,950 192,681 1,007,950 423.1% 1,010,000 2,050 481,551 483,601
1,243,866 1,227,371 1,160,784 (5.4%) 1,115,438 (45,346) 402,827 357,481
$65,228,773
$69,713,439 $68,154,653 $72,043,937 5.7% $70,705,373 ($1,338,562) $18,710,967 $17,372,405
Three -Year Budget Comparison • Exhibits - 3
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
2013
Actual
Expenditures
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
$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
$5,106,566 $3,799,078 $1,881,134 (50.5%) $1,822,913 ($58,221) $1,222,902 $1,164,681
131,000 106,152 91,000 (14.3%) 26,220 (64,780) 123,332 58,552
140,000 140,000 50,000 n/a 71,927 21,927 4,473 26,400
2,473,235 835,000 3,500,000 319.2% 1,900,000 (1,600,000) 2,793,687 1,193,687
100,000 100,000 1,000,000 900.0% 950,000 (50,000) 239,590 189,590
882,808 882,808 2,254,159 155.3% 1,963,500 (290,659) 375,181 84,522
884,796 913,159 639,636 (30.0%) 554,886 (84,750) 610,528 525,778
732,773 719,010 1,028,084 43.0% 836,449 (191,635) 592,513 400,878
772,787 772,787 772,787 0.0% 752,000 (20,787) 514,273 493,486
16,500,000 17,535,000 - n/a 20,811 20,811 38,171 58,982
402,311 426,846 490,000 14.8% 210,500 (279,500) 465,050 185,550
4,948,000 6,518,836 2,245,000 (65.6%) 50,000 (2,195,000) 2,285,306 90,306
11,162,885 1,306,399 12,539,721 859.9% 12,776,500 236,779 537,821 774,600
790,000 790,000 2,025,000 156.3% 940,000 (1,085,000) 1,244,734 159,734
1,989,000 1,996,000 1,749,000 (12.4%) 1,868,507 119,507 2,264,727 2,384,234
400,000 400,000 600,000 50.0% 600,000 1,147,941 1,147,941
4,793,813 1,887,000 3,280,000 73.8% 500,000 (2,780,000) 4,189,960 1,409,960
5,525,019 4,620,000 2,500,000 (45.9%) 750,000 (1,750,000) 3,496,315 1,746,315
9,663,679 3,754,000 810,000 (78.4%) 4,681,500 3,871,500 (3,156,070) 715,430
1,621,504 1,060,129 1,567,742 47.9% 1,430,060 (137,682) 984,263 846,581
$44,322,717
$71,927
3,706,744
$69,020,176 $48,562,205 $39,023,263 (19.6%) $32,705,773 ($6,317,490) $19,974,697 $13,657,207
$71,927
3,299,649
$71,927
3,571,925
$71,927
3,643, 761
$3,778,671
$3,371,576 $3,643,852
$3,715,688
0.0% $0 ($71,927) $108,568 $36,641
2.0% 3,684,000 40,239 634,139 674,378
2.0% $3,684,000 ($31,688) $742,707 $711,019
4 — Exhibits • Three -Year Budget Comparison
2013 2014 2014
Actual Amended Year -End
Expenditures Budget Estimate
2015 2015 2015 2015 2015 2015
Preliminary vs 2014 Projected Use of Beginning Est. Ending
Budget Estimate Revenue Reserves Fund Balance Fund Balance
Employee Benefit Reserves
Unemployment Compensation $155,204 $286,582 $192,308
Employees Health Benefit 9,945,429 9,867,703 10,206,343
Workers' Compensation 1,131,336 1,258,630 1,302,286
Wellness/EAP Fund 117,595 176,300 176,300
Firemen's Relief & Pension 1,229,569 1,259,308 1,250,483
$323,177 68.1% $197,000 ($126,177) $396,415 $270,238
9,745,849 (4.5%) 9,823,850 78,001 2,483,372 2,561,373
1,241,131 (4.7%) 1,033,000 (208,131) 820,971 612,840
174,800 (0.9%) 175,000 200 178,629 178,829
1,380,282 10.4% 1,280,838 (99,444) 949,965 850,521
Total Employee Benefit Reserves $12,579,133 $12,848,524 $13,127,720
Trust and Agency Funds
Cemetery Trust
YakCorps Agency Fund
Total Trust and Agency Funds
$6,300
587,004
$12,000 $12,000
610,671 610,671
$12,865,238 (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
$593,304
$622,671 $622,671
$617,777 (0.8%) $620,277 $2,500 $958,666 $961,166
Debt Service
L.I.D. Guaranty $35,000 - - - n/a $50 $50 $25,264 $25,314
PFD Debt Service 1,017,000 1,015,650 1,015,650 1,026,050 1.0% 1,016,422 (9,628) 160,216 150,588
General Obligation Bonds 2,419,857 3,708,199 2,085,429 3,438,379 64.9% 3,438,939 560 77,196 77,756
L.I.D. Debt Service 196,032 245,000 245,000 245,000 0.0% 245,000 - 78,138 78,138
Water-Irrigation/Sewer Bonds 2,127,560 2,144,786 2,144,786 2,132,155 (0.6%) 2,134,280 2,125 1,762,214 1,764,339
Total Debt Service $5,795,449 $7,113,635 $5,490,865 $6,841,584 24.6% $6,834,691 ($6,893) $2,103,028 $2,096,135
Total City Budget $195,837,526
$231,602,548 $207,928,463
$205,608,534 (1.1°/0) $197,549,126 ($8,059,408) $57,247,234 $49,187,826
What You Pay and What You Get
WHAT YOU PAY AND WHAT YOU GET
This section is presented to assist the reader in understanding the taxes they pay, what
governmental entity receives those tax revenues and how the City spends their allocated portion.
Enclosed, you'll find charts and graphs which identify how much of the taxpayers' dollar comes to
the City and what percentage of the City's total revenues each type of tax/charge represents. Also
included is (a) an outline of the City taxes and utility charges collected from a typical Yakima
household; (b) a depiction of how those revenues are then distributed between the various City
services/functions and (c) the amount a typical four person household pays for these services.
MAJOR TAXES PAID
Sales and Use Tax
There is an 8.2% sales tax charged on the sale of goods within the City. The vast majority of this
revenue is allocated to the State, not the City. The State receives 6.50% while the City receives .85% for
the general fund and an additional .30% that is restricted for transit services. .15% goes directly to the
County, and .40% represents countywide taxes for Criminal Justice that is allocated between Cities and
the County. (Refer to the following chart for a complete detailed listing of how this revenue is allocated.)
Following is an example of how the sales taxes paid by the consumer are allocated between the City
and the State. Based on the assumption that a family with a taxable income of $40,000 will spend
$10,000 on items on which sales tax will be applied, they will pay approximately $820 in sales taxes
annually. Of this amount, 14.0% or approximately $115 goes to the City ($85 or .85% for general
fund and $30 or 0.3% for transit services).
The following chart depicts how much of each dollar of sales tax revenue is allocated to the State,
the City and the County.
ALLOCATION OF SALES TAX COLLECTION
State of Washington
79.3¢
TNTOGERTI.IEs THAT THERE
�HAS
}OMEN
��■eO0 CCPOS MED IN TIIE`TREASURY Or /{jjf ypi'►
TM MEMO
h
..N.. ra. �.,.
A22123565)4
Yakima Transit
3.7¢
'SONE SILVER DOLLAR; .
•• ``fy) Y�Y_1R).E: TO THE RKARF.R ON ))Y_)E.1.tiD �. �' .
City of Yakima
(General Fund)
10.3¢
County
6.7¢
What You Pay and What You Get • Exhibits — 5
SALES TAX RATES WITHIN YAKIMA CITY LIMITS
(In descending order by total allocation)
State of Washington
City of Yakima (General Fund) (1)
Yakima Transit
Yakima County (Current Expense Fund) (1)
Yakima County Criminal Justice (2)
Total Sales Tax Rate in City Limits
Percent Example
Rate of Total $100 Sale
6.50% 79.27% $6.50
0.85% 10.37% $0.85
0.30% 3.66% $0.30
0.15% 1.83% $0.15
0.40% 4.88% $0.40
8.20% 100.00% $8.20
(1) The City charges 1%; however, the county receives .15% of the cities' sales tax collections.
(2) This tax is allocated among the cities and the county to support Criminal Justice uses.
Property Taxes
The total property taxes paid by property owners within the City of Yakima include taxes levied by
several governmental entities: the State, School Districts, special county -wide voted levies and the
City's general and special voter approved levies. The percentage of the total property taxes levied
by, and allocated to, each individual governmental entity will change slightly from year to year.
The City's portion is generally under 30% of the total amount collected. (Refer to the graph and
chart below for how the 2014 property taxes were allocated between these governmental entities.)
2014 PROPERTY TAX DISTRIBUTION
Yakima School District
0.36
�`� iI�Y >ItiN.ilY�01 (iIEVY
croeTIrit7 rr rrn ERE 1-1/4%111r=0117,,111!•
111I L1i�'._4 ij
K
State of Washington Schools
0.20
E TAEhSU nv Or
A 122123565 A
vwn`r
13,...J ;11
A22123565 A
grrnr
Library
.04¢
;jilt I
SIDES nOIJ
City of Yakima
.24¢
Yakima County EMS
.14¢ .02¢
City of Yakima Property Tax — In 2014, a typical City resident pays approximately $13.17 per
thousand of assessed value on property taxes. Only $3.14, or about 23.8%, goes to the City, with the
balance divided between the County, schools, and other special districts.
Description Of How Property Taxes Are Levied - The following explanation is included to help
the reader understand how property taxes are assessed to the individual property owners. To aid
in this explanation, three commonly used terms must be understood. They are Property Tax Levy,
Property Tax Rate and Assessed Value.
6 - Exhibits • What You Pay and What You Get
➢ Property Tax Levy — is the total amount of money that is authorized to be collected.
➢ Property Tax Rate — is the property tax amount that will be applied to every $1,000 of
assessed value; the rate is determined by simply dividing the levy amount by the total
assessed value amount and dividing that number by 1,000.
➢ Assessed Value — is the total value, as determined by the County Assessor's Office, of all
property within the City.
All taxing jurisdictions annually set the levy (i.e. amount of tax) in accordance with the limitations
set by state law. The County Assessor then takes the levied amount and divides it by total assessed
value to arrive at the rate/$1,000.
In other words, an increase in assessed value does not affect the total amount levied or collected by
the governmental entity. Nor does it automatically affect the amount the property owner must pay.
The dollar amount of the levy is restricted by law — the assessed value is simply the means to allocate
the total dollars among the property owners. A change in one property owner's assessed value will
affect his/her property tax bill only if the change is significant enough to change that property
owner's percentage of the total assessed value of all property within the taxing districts. (Example: if
the amount of property tax levied does not change from one year to the next, and every property
owner's assessed value goes up 3%, there will be no change in the property tax owed by any of the
property owners. This is due to the fact that everyone's assessed value increase by the same amount;
therefore, every property owner's percentage of the total tax levy remained the same.)
PROPERTY TAX CODE AREA #333 (YAKIMA SCHOOLS) — CONSOLIDATED LEVY AND RATES
2013 ASSESSED VALUATION — 2014 TAX YEAR
Property Tax Levy
City Levy
General Fund
Parks & Recreation
Street & Traffic Operations
Firemen's Relief & Pension
Total Operating Levy
Total Bond Levy
Total City Levy
Amount Percent
2013 2014 of
Rate Levy Levy
$2.0060 $11,063,831
0.3382 1,865,490
0.5595 3,085,610
0.2150 1,186,000
3.1188 17,200,931
0.0197 107,230
$3.1385 $17,308,161
23.7%
0.1%
23.8%
Other Levies
Yakima School District #7
Operation & Maintenance 3.1316 17,028,874 36.7%
Bond Redemption 1.7009 9,249,077
State Schools 2.6149 14,421,866 19.9%
Library 0.4812 2,653,946 3.7%
Yakima County
Yakima County 1.7646 9,732,237 14.1%
Yakima County Flood Control 0.0913 503,544
EMS Levy 0.2500 1,378,816 1.9%
Total Other Levies 10.0345 54,968,360 76.2%
Total Levy Code #333
$13.1730 $72,276,521 100.0%
What You Pay and What You Get • Exhibits — 7
City Taxes and Utility Charges
The taxes and utility charges shown in the following charts are only those directly levied by the
City. In the cases of sales and property taxes, the 2 major taxes paid directly by Washington
residents, only a small portion of the total tax belongs to the City.
To illustrate what a typical household might pay, the following assumptions were made. Property tax
based on $120,000 home; Sales tax based on $42,000 annual income and $10,500 taxable purchases;
Utilities based on 96 gallon can for Refuse, 1,300 cubic foot monthly consumption for Water/Wastewater;
Irrigation for 7,000 square foot lot; Stormwater based on impervious surface; Gas/electricity $3,000,
telephone $1,200, cable television $1,200. Based on these assumptions, a typical household in Yakima
paid approximately $227 a month, or $2,725 a year, as depicted in the following charts.
ANNUAL TAXES AND UTILITY CHARGES LEVIED
BY THE CITY OF YAKIMA ON THE TYPICAL HOUSEHOLD FOR 2014
Revenue
Rate Cost Per
Per 1,000 Household
Property Taxes - General $3.1188/1,000 $374
Special Levy Property Taxes $0.0197/1,000 2
Sales Tax - General 121
Transit Sales Tax 32
Tax on City - Owned Utilities - General 249
Tax on Private Utilities - General 335
Utility Charges (Water/Wastewater/Refuse) - Exc. Utility Tax 1,299
Stormwater 67
Irrigation Assessment 246
$2,725
CITY TAXES AND UTILITY CHARGES
COST TO TYPICAL HOUSEHOLD — $2,725 ANNUALLY
Water
$344
Irrigation
$246
Refuse
$216
Gene ral
Government
$133
Streets
$56
Parks
$60
Capital
Project Funds
$52
Other
$150
Wastewater
$738
iiif Service F
$8
Storm Water
$67
8 — Exhibits • What You Pay and What You Get
Public Safety
$710
Spe cial Le vy De bt
$2
GENERAL GOVERNMENT REVENUE
The total 2015 proposed General Government Revenue Budget is approximately $70.5 million.
The following chart breaks this dollar amount down by the source of the revenue. Note that three
revenue sources - sales tax, property tax and franchise and utility taxes - generate 74.4% of the total
general fund revenues.
27.25
Sales Tax
($19,185,350)
GENERAL GOVERNMENT REVENUE
(BASED ON 2015 BUDGET OF $70.5 MILLION)
MIS GENTIEIt7 TMAT THERE HAS SI
IFEEPADVIA
23.2e
Property Tax
($16,336,390)
24.05
Franchise &
Utility Tax
($16,912,595)
CH [[��O{{�E��POSITED IN THE TREASU
!i M
A2212
WANHIN
IR DOLLaR``
..:.114,1F:14 ON OT: E.1YII
6.65 3.75
Intergovernment & Other
State Shared Revenue Revenue
($4,632,800) ($2,613,778)
- ONE!
sr or
Mak
!3565 A
IA
losax.n.c.
11.0e
Licenses, Permits
& Charges
for Services
($7,734,301)
Iw
4.45
Fines &
Other Taxes
($3,074,110)
Note: The term "General Government" refers to basic tax supported functions. The major functions
included in this category are: Police, Fire, Streets and Traffic Operations, Parks and Recreation and
Municipal Court services. These functions use about 68.8% of General Government revenues. Other
administrative services include Information Systems (i.e. computer support), Legal, Finance, Purchasing
and Human Resources - services necessary for any organization to function.
GENERAL GOVERNMENT EXPENDITURES
The following chart depicts the breakdown of the proposed 2014 general government expenditure
budget. This breakdown identifies that the City spends over $45.9 million (or 68.1%) of its available
resources on providing public safety services (Police & Courts, Fire & Code Enforcement).
Additionally, the City allocates over 7.0% of its resources to maintaining and operating the Streets
and Traffic Systems and another 6.5% to provide Parks and Recreation programs and services.
Providing the existing services in these four basic categories takes 81.5% of all the City's available
general government resources.
What You Pay and What You Get • Exhibits — 9
Providing the services in these four critical areas is labor intensive; approximately 70.2% of these
costs are personnel related. Therefore, any significant budget reductions in these areas will require
a reduction in personnel and the related services these individuals perform. Conversely, any
significant reductions in the overall general government budget that do not include these four
largest areas of the budget will severely limit the services the remaining departments will be able to
provide (i.e.: Financial (including Information Technology), Legal, Community Planning and
Project Engineering and Administration).
Breaking down the City's general government budget by these major service areas and identifying
the percentage of each available dollar that the City allocates to each of these areas provides the
reader with a visual picture of where the focus and priorities of the City have been placed.
Additionally, this chart will assist the reader in understanding the difficult challenges facing the
City should it become necessary to implement a significant reduction in the City's proposed budget
without affecting the public safety budget and services.
GENERAL GOVERNMENT EXPENDITURES
(BUDGET OF $71.9 MILLION - INCLUDES FIRE PENSION OF $1.4 MILLION)
43.65
Police &
Courts
$30,960,348
7.05
Streets &
Traffic
$4,991,362
MAS RFC NO[POSRLDIN 1MEi REASURY
A2 2122 565
6.65
Parks &
Recreation
$4,658,998
23.05
Fire / Code
Enforcement
$16,338,412
41
L�J
re,
6.35
Financial &
Legal Services
$4,502,812
2.05
Community Planning
Project Engineering
$1,455,002
11.55
Governance/
Administration
$8,148,481
Allocation of Expenditures
Following is a detailed analysis of the City of Yakima's local tax structure. This analysis shows the
various sources of City revenue and identifies what type of services these revenues will fund in
2015. Additionally, this analysis reflects the cost of each of these services to a typical household.
The non -tax funding sources identified include all sources except directly levied taxes (shown in
the adjacent column) which are property, sales and utility taxes. The non -local tax amounts are
made up of direct charges for services, state shared revenues, grants, interfund charges, beginning
balances, and other miscellaneous sources.
10 - Exhibits • What You Pay and What You Get
Municipal public safety services consume the greatest share of local taxes, $710 per household per
year, or 65.8% of the total general taxes paid. Other General Government services cost $151 per
household annually, or 14.0%. Streets and Parks together cost $116 per household annually, or
10.7% of general taxes paid.
The Refuse, Water and Wastewater utilities combine to cost approximately $1,298 annually per
household. (Many of the costs included in the budgets of the utilities fund State and Federal
mandates that local citizens must pay.)
ALLOCATION OF TAXES AND UTILITY CHARGES
(BASED ON 2015 PROPOSED BUDGET - BUDGET NUMBERS IN THOUSANDS)
2015
2015 Non -Tax Allocation Household Permanent
Proposed Funding Local of Taxes Typical Budgeted
Tax Supported Functions Budget Sources Taxes Collected Cost(l) Positions
Local Direct General Purpose Tax Supported Functions
Public Safety (Police Fire & Pensions) $48,009 $8,013 $39,996 65.8% $710 336.6
General Government 20,349 11,844 8,505 14.0% 151 135.8
Streets Department 5,049 1,878 3,171 5.2% 56 31.0
Parks Department 4,713 1,352 3,361 5.5% 60 21.3
Other Special Revenue Funds 3,226 916 2,310 3.8% 41 14.0
Debt Service Funds 4,465 4,037 428 0.7% 8 0.0
Capital Project Funds 16,269 13,216 3,053 5.0% 54 0.0
Local Direct Special Purpose Tax Supported Functions
Special Levy Debt 245 245 0 - 2 0.0
Transit Division 10,330 4,753 5,577 - 32 55.0
Non -Local Tax Supported Functions
Street Construction 1,881 1,881 - - - 0.0
Refuse -18,767 Residential accounts 6,115 6,115 - - 216 20.5
Wastewater -22,591 Residential accounts 27,160 27,160 - - 738 59.4
Water -17,349 Residential accounts 12,097 12,097 - - 344 32.0
Equipment Rental 5,412 5,412 - - - 14.0
Public Works Administration 1,161 1,161 - - - 9.0
Self-insurance Reserve 6,216 6,216 - - - 0.0
Employee Benefit Reserve 9,921 9,921 - - - 0.0
Irrigation -10,541 Residential accounts 3,677 3,677 - - 246 7.0
PBIA 205 205 - - - 0.0
Storm Water 5,470 5,470 - - 67 9.8
Airport 13,639 13,639 - - 7.0
Totals $205,609 $139,208 $66,401 100.0% $2,725 752.4
(1) Based on 2015 cost for a typical four person household: Property tax based on $120,000 home; sales tax based on
$42,000 annual income and $10,500 taxable purchases; utilities based on 96 gallon can for refuse, 1,300 cubic foot
monthly consumption for water/wastewater; irrigation for 7,000 square foot lot; gas / electricity $3,000, telephone
$1,200, and cable TV $1,200.
What You Pay and What You Get • Exhibits -11
12 — Exhibits • What You Pay and What You Get
TAX BURDEN - FEDERAL VS. LOCAL
The Tax Foundation of Washington D.C. publishes a Special Report each April, called "America
Celebrates Tax Freedom Day". This is when Americans will have earned enough money to pay off
their total tax bill for the year. Taxes at all levels of government are included, whether levied by the
federal government or state and local governments. Tax Freedom Day in 2014 fell on April 21st,
three days later than it did in 2013, due mainly to the country's continued slow economic recovery.
On average in 2014, Americans will work 74 days to afford their federal taxes and 37 more days to
afford state and local taxes.
As the economic recovery continues, the growth in individual incomes and corporate profits will
increase tax revenues and push Tax Freedom Day ever later in the year. The total tax burden borne
by residents of different states varies considerably, not only due to differing state tax policies, but
also because of the progressivity of the federal tax system. This means higher -income and higher -
tax states celebrate Tax Freedom Day later than lower-income states.
Tax freedom day for Washington arrives on April 25th this year. The report indicates that
Washington State was ranked 9th highest in the nation for overall per capita taxes paid in 2013.
This demonstrates that Puget Sound, with a higher cost of living and commensurately higher
salaries, generated high federal income tax payments. (Some of the wealthiest people in the world
live in Washington State.) However, estimated at 9.4% of income, Washington's state and local tax
burden percentage ranks 24th lowest nationally, below the national average of 9.8%. It also
demonstrates how small the state and local tax burden is in comparison to the total taxes paid - at
less than one third of the total tax burden (currently at 30.5%).
For the most part, local taxes cost the least and provide citizens with the services they need and
care about the most - they have the most direct bearing on their quality of life. This is also the
level where citizens are most empowered to affect government policy and monitor accountability.
There are per capita comparisons presented in the Budget, which contrasts the City of Yakima with
other similar cities in Washington State. Yakima is consistently below the average in per capita
taxes.
What You Pay and What You Get • Exhibits —13
Supplemental Information
EXHIBIT III — SUPPLEMENTAL INFORMATION
TABLE OF CONTENTS
CRIMINAL JUSTICE
Criminal Justice Costs
General Government Budgets
Criminal Justice Sales Tax
SALARY AND BENEFIT COSTS
Costs to Total Budget
Operating Funds
RESOURCE AND EXPENDITURE BREAKDOWN
Graphic Portrayal
Total Resources — by Category
Total Resources — by Category and Source
Total Expenditures
Supplemental Information • Exhibits —13
CRIMINAL JUSTICE
This analysis compares Criminal Justice expenditures to other General Government costs. Criminal
Justice costs include: Police Department (including jail costs); Police Pension; Court and Probation
costs; Prosecution and Indigent Defense (included in the Legal Department budget) and forty
percent of Information Systems budget (the amount dedicated to Law and Justice support). This
category also includes one-half of the transfer from the General Fund to the Public Safety
Communications Fund for Dispatch and the transfer from the General Fund to Debt Service funds
to repay debt borrowed for Criminal Justice purposes. This graph reflects the City's efforts to meet
Council's Strategic Priorities. Public safety has been a high priority focus of City Council for the
last two decades.
GENERAL GOVERNMENT BUDGETS (1)
LAST TEN YEARS
2006 2007 2008 2009 2010
Amended Amended Amended Amended Amended
Budget Budget Budget Budget Budget
General Fund
Criminal Justice $22,857,422 $25,014,331 $26,935,856 $28,471,541 $27,554,732
Other 19,557,208 18,856,452 19,782,839 20,240,301 19,912,799
Parks & Recreation 4,074,592 4,199,143 4,420,906 4,249,796 4,133,782
Street/Traffic 5,522,653 5,907,882 6,213,833 5,686,692 5,308,117
Total $52,011,875 $53,977,807 $57,353,434 $58,648,330 $56,909,430
Consumer Price Index
June June June June June
2005 2006 2007 2008 2009
194.8 203.8 210.6 223.6 219.9
(1) Excludes double budgeted transfers between general government funds
14 — Exhibits • Supplemental Information
COSTS VS. OTHER GENERAL GOVERNMENT FUNCTIONS
Parks &
Recreation
$4,713,152
7.2%
Street/Traffic
$5,049,379
7.7%
Criminal Justice
$33,115,537
50.5%
Other
$22,647,106
34.6%
2011 2012 2013 2014 2015 2015
Amended Amended Amended Amended Preliminary VS 10 Year 10 Year
Budget Budget Budget Budget Budget 2014 Increase Increase
$28,192,940 $29,522,541 $31,849,983 $32,296,340 $33,115,537 2.6% 44.9% $10,258,114
19,279,670 19,343,517 19,727,486 22,779,975 22,647,106 (0.7%) 15.8% $3,089,899
4,042,938 4,048,697 4,132,425 4,556,548 4,713,152 3.8% 15.7% $638,560
5,218,691 5,199,157 5,490,823 4,821,409 5,049,379 4.2% (8.6%) ($473,274)
$56,734,239 $58,113,912 $61,200,717 $64,454,272 $65,525,174 1.7% 26.0% $13,513,299
June June June June June 10 Year
2010 2011 2012 2013 2014 Increase
221.7 227.5 236.2 239.0 242.0 24.2%
Supplemental Information • Exhibits —15
CRIMINAL JUSTICE SALES TAX - .3% EXPENDITURES AND REVENUES
2014 2015
2011 2012 2013 Year -End Proposed
Actual Actual Actual Estimate Budget
General Fund
Police Department
Salaries & Benefits (includes overtime) $671,542 $704,378 $778,240 $716,539 $725,656
Miscellaneous (uniform/fuel/travel) 14,639 13,345 50,727 120,000 120,000
Liability Insurance 7,542 8,296 8,877 9,498 10,448
Professional Services/R&M Contractors 0 75 0 0 5,000
Yakima County Jail Cost 350,000 479,692 449,976 422,000 422,000
Total Police Department 1,043,723 1,205,786 1,287,820 1,268,037 1,283,104
The .3% Criminal Justice funds support six full time Patrol Officers including, all wages, overtime, uniforms,
supplies, insurance and training expenses. Additionally, these funds are used for repairs, maintenance,
communications and fuel used for additional patrols. A portion of the increased Jail costs are also paid out of this
Municipal Court
Salaries & Benefits (includes overtime) 145,841 142,074 157,997 208,857 225,957
Professional Services 30,722 38,922 26,007 45,000 45,000
Miscellaneous (office supplies/travel/dues) 0 1,259 5,174 5,000 5,000
Total Municipal Court 176,563 182,255 189,178 258,857 275,957
The Criminal Justice funds support two Municipal Court Clerk positions and a 3/4 -time Court Commissioner
including all wages, overtime, supplies and training. Additionally, this fund supports building security, interpreter
services and witness and juror fees associated with processing the court's case load.
Legal Dept
Salaries & Benefits (includes overtime) 154,948 166,771 178,791 187,465 182,280
Professional Services 0 70 180 5,000 5,000
Miscellaneous (office supplies/travel/dues) 3,086 1,878 2,794 3,750 3,750
Total Legal Department 158,034 168,720 181,765 196,215 191,030
The .3% Criminal Justice Sales Tax is being used to supplement criminal justice functions throughout Yakima
County. This money fully funds one Legal Assistant II position, one Assistant City Attorney II position including
mandatory continuing legal education expenses and dues and subscriptions for required Associations.
Information Systems
Salaries & Benefits (includes overtime) 22,191 29,016 28,538 16,541 11,754
Miscellaneous 100 0 0 0 0
Professional Services/R & M Contractors 39,692 91,256 94,227 102,441 124,676
Total Information System 61,983 120,272 122,765 118,982 136,430
The portion of the .3% Criminal Justice Sales Tax allocated to Information Systems is used to enhance the
effectiveness of the law enforcement and other Criminal Justice personnel through the expanded use of technology.
Currently, the emphasis is on mobile technology for the patrol officers. A portion of these funds are budgeted for
temporary salaries used to support the mobile computing and technology infrastructure that has been expanded and
enhanced through Criminal Justice Tax over the last two years. YAKCORPS member fees have been added to this
16 - Exhibits • Supplemental Information
2013 2014 2015
2011 2012 Year -End Proposed Proposed
Actual Actual Estimate Budget Budget
Animal Control/Codes
Salaries & Benefits (includes overtime) $66,212 $68,644 $71,910 $68,626 $65,080
Misc (uniforms/supplies/fuel/cell phone) 6,841 8,892 9,808 11,983 10,727
Total Animal Control/Codes 73,053 77,536 81,718 80,609 75,807
The .3% Criminal Justice Funds support one full-time Animal Control Officer including all wages, overtime, supplies
and communication necessary for this position.
Human Resources
Professional Services (employee recruitment) 3,250 3,250 6,500 6,500 6,500
The .3% Criminal Justice funds are used to provide for contract services, testing and other necessary recruitment
costs for positions funded by the criminal justice sales tax.
General Fund Total Expenditures $1,516,606 $1,757,819 $1,869,746 $1,929,200 $1,968,828
Other Funds
Public Safety Communication
Salaries & Benefits (includes overtime) $159,287 $139,930 $180,477 $174,364 $168,073
Small Tools & Equipment 0
Total Public Safety Communication 159,287 139,930 180,477 174,364 168,073
Criminal Justice funds allocated to this department are used for additional positions necessary to accommodate the
increased workload generated by law enforcement activities. These funds provide for two full-time Dispatcher and
temporary support for Police.
Law & Justice
Small Tools & Equipment 2,867
Operating Equipment 1,618 44,179 0 110,000 115,000
Total Law & Justice 4,485 44,179 0 110,000 115,000
The .3% Criminal Justice funds support Capital expenses related to the new positions, technology and services
created with this tax.
Total Expenditur es $1,680,378 $1,941,927 $2,050,223 $2,213,564 $2,251,901
Revenue $1,831,296 $1,935,069 $1,856,855 $1,955,000 $2,055,850
Revenue over (Under) Expenditures
Cumulative Balance
$150,918 ($6,858) ($193,368) ($258,564) ($196,051)
$655,602 $648,744 $455,376 $196,812 $761
Supplemental Information • Exhibits -17
SALARY AND BENEFIT COSTS
COSTS TO TOTAL BUDGET
The following chart represents the relationship of the City's salary and benefit costs to total budget
for General Government and other funds of the City. The City's General Fund ranks in the top
three with salary and benefit costs, representing 67.9% of total fund expenditures. However,
employee compensation and benefit costs for an individual department within the General Fund as
a percentage of its total costs range from 28.1% to 92.1%. In several departments (including Police,
Legal and Information Systems) if contracted services were excluded, the percentage of salary and
compensation costs as a percentage of the division total costs would be considerably higher than
what is depicted on the following chart.
Parks, Streets and other operations for the most part are more capital intensive, and the ratio of
salary and benefits to total costs are representative of that type of operation.
Section I includes an analysis based on information gathered by the State Auditor's Office. The
chart in this section identifies the per capita salary costs for Yakima and 11 other comparable cities,
and indicates that:
➢ The City of Yakima spends, on the average, $3 less per capita on salaries than other
comparable cities, even though we are a full service city providing Refuse, Irrigation and
Transit while most other cities do not directly provide these functions.
To minimize the number of regular employees and to maintain service levels during periods of
peak workload demands, the City uses contract and temporary labor when feasible.
18 — Exhibits • Supplemental Information
OPERATING FUNDS
SALARIES & BENEFITS AS A PERCENTAGE OF TOTAL DEPARTMENT/FUND BUDGET
2015 2015
Proposed Salaries & Labor
General Government Expenditures Benefits Percentage
Police $26,687,333 $21,093,791 79.0%
Fire 10,680,888 9,840,371 92.1%
Information Systems 2,893,070 2,144,576 74.1%
Financial Services 1,601,125 1,434,806 89.6%
Legal 1,516,206 1,390,756 91.7%
Code Administration 1,683,102 1,290,200 76.7%
Municipal Court 1,370,533 1,141,151 83.3%
Utility Services 1,582,844 1,137,128 71.8%
Engineering 890,530 733,607 82.4%
Purchasing 654,699 595,564 91.0%
Human Resources 664,003 481,813 72.6%
Planning 581,384 469,584 80.8%
City Clerk/Records 593,216 395,489 66.7%
City Manager 383,893 346,794 90.3%
City Hall Maintenance 524,298 242,619 46.3%
Economic Development 677,329 190,029 28.1%
Emergency Preparedness 212,246 135,996 64.1%
City Council 286,735 102,799 35.9%
Gang Free Initiative 230,820 83,820 36.3%
Other General Fund Expenditures 7,024,264 0 0.0%
Total General Fund $60,738,516 $43,250,892 71.2%
Parks & Recreation 4,713,152 2,091,232 44.4%
Street & Traffic Operations 5,049,379 2,546,171 50.4%
Total General Government $70,501,047 $47,888,295 67.9%
Economic Development 235,766 121,633 51.6%
Community Development 1,479,188 499,438 33.8%
Community Relations 612,510 449,611 73.4%
Cemetery 292,795 195,032 66.6%
Emergency Services 1,312,692 1,074,112 81.8%
Public Safety Communications 4,438,988 2,751,628 62.0%
Police Grants 475,296 338,865 71.3%
Airport 1,099,571 657,603 59.8%
Stormwater 3,444,953 880,275 25.6%
Transit 8,581,402 4,074,486 47.5%
Refuse 6,114,871 1,534,004 25.1%
Wastewater Operating 20,893,684 5,315,969 25.4%
Water Operating 9,359,410 2,682,185 28.7%
Irrigation Operating 1,791,819 717,533 40.0%
Unemployment Comp Reserve 323,177 64,392 19.9%
Employment Health Benefit Reserve 9,745,849 344,567 3.5%
Workers Compensation Reserve 1,241,131 152,438 12.3%
Risk Management Reserve 3,643,761 659,779 18.1%
Equipment Rental 5,411,876 1,120,320 20.7%
Public Works Administration 1,160,784 622,004 53.6%
Other Funds (Capital/Debt Serv. etc) 53,447,963 0 0.0%
Total City-wide Budget $205,608,534 $72,144,170 35.1%
Supplemental Information • Exhibits -19
RESOURCE AND EXPENDITURE BREAKDOWN
GRAPHIC PORTRAYAL OF CITY RESOURCE CONSUMPTION
The purpose of this section is to graphically present total City resources by category, and distribute
them by function and type of expenditure for the 2014 budget year. This "flow of resources"
concept is designed to give the taxpayer a basic understanding of how tax dollars and other
revenues are spent in the City. Interfund transactions have been eliminated (i.e., those items that
flow out of one fund and into another; these are referred to as double budgeted items) in order to
portray only external revenue sources available to the City.
The broad revenue categories are based upon the State of Washington's mandated accounting
structure. A definition of the terms is included below:
Borrowings - Proceeds from long-term debt issued by the City. In 2015 this includes a Wastewater
revenue bond, a lease/purchase through the State LOCAL program for Fire Equipment, interfund
loans to fund match for the Airport Capital grant and equipping the new Public Safety
Communications Center.
Capital Reserves - Accumulated fund balances set aside for specific capital projects.
Charges for Services - Fees charged to outside users to cover the cost of providing services (e.g.
utility rates, golf course and swimming pool fees, transit fare box revenues).
Intergovernmental Revenues - Revenues received from other governmental agencies (i.e. federal,
state, and county). This category includes primarily grants and state -shared revenues (such as gas
and liquor tax revenues).
Operating Reserves - Accumulated fund balances in operating funds. Prudent reserves generally
are a minimum 8-16% of annual operating budgets.
Other - All revenue sources which are not included in other categories. This includes primarily
investment income, program income, fines and forfeitures, and licenses.
Taxes - Tax assessments are levied for the support of the governmental entity. Sales tax is the
largest item in this category. It is followed by property tax, utility and franchise taxes, and various
other business taxes.
The first graph identifies the total revenue picture by category. The second revenue graph depicts
the relationship of the various revenue sources to each function.
Lastly, included is a graphic by major object (or type) of expenditure, net of double budgeted
expenditures.
20 - Exhibits • Supplemental Information
Operating Reserves
$25,698,896
12.5%
Borrowings
$5,974,000
2.9%
Capital Reserves
$21,736,911
10.6%
CRY OF (Yakima
TOTAL RESOURCES
BY CATEGORY
2015 BUDGET
Other
$9,098,396
4.4%
Charges for Services
$46,853,026
22.8%
Taxes
$65,713,835
31.9%
Intergov't
$30,766,361
14.9%
TOTAL RESOURCES = $222,641,573
(Excludes Internal Service Funds and other double budgeted resources of $48,954,935)
Supplemental Information • Exhibits — 21
Police & Fire
Gen
Government
Parks &
Recreation
Street
Operations
Street
Construction
Gen Govt
Const
G.O. Debt
Service
Special
Revenue
Transit
Airport
Utilities
CRY OF (Yakima
TOTAL RESOURCES
BY CATEGORY AND SOURCE
2015 BUDGET
3
3
o=0J
$0.0 $10.0 $20.0 $30.0 $40.0 $50.0 $60.0 $70.0
D Taxes D Intergov't ■ Charges D Borrowings G Operating D Capital ■ Other
for Services Reserves Reserves
22 — Exhibits • Supplemental Information
CRY OF (Yakima
TOTAL EXPENDITURES
BY TYPE
2015 BUDGET
Debt Service
$9,979,583
5.6%
Capital
$35,330,487
19.9%
Intergov't
$3,035,991
1.7%
Other Services
$47,488,214
26.7%
Salaries
$54,829,033
30.8%
Supplies
$7,930,204
4.5%
TOTAL EXPENDITURES = $179,702,865
(Excludes double budgeted expenditures of $27,699,252)
Benefits
$19,315,770
10.9%
Supplemental Information • Exhibits — 23
24 — Exhibits • Supplemental Information