HomeMy WebLinkAbout12/09/2014 12 2015 Budget AdoptionBUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No. 12.
For Meeting of: December 09, 2014
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ITEM TITLE:
SUBMITTED BY:
SUMMARY EXPLANATION:
Ordinance adopting a 2015 Budget for the City of Yakima
Tony O'Rourke, City Manager
Cindy Epperson, Director of Finance & Budget
City management recently submitted 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. Since
that presentation, minor corrections were made, and we have updated the numbers and
explained all of the changes in the transmittal memorandum attached to this agenda item. The
budget documents and the Council review meetings are all open and available to the public.
This is the last step in the 2015 budget process. In accordance with state law, Council is
required to adopt the budget prior to year end. Attached is a transmittal memorandum which
details the changes from the preliminary to final budget; a "Budget -in Brief" document that is a
short summary of the citywide 2015 budget; and the budget ordinance with a schedule of
revenues and expenditures that is updated from Preliminary Budget Summary to create the
2015 Final Adopted Budget.
Resolution: Ordinance: X
Other (Specify):
Contract: Contract Term:
Start Date: End Date:
Item Budgeted: Amount:
Funding Source/Fiscal
Impact:
Strategic Priority:
Insurance Required? No
Mail to:
Public Trust and Accountability
Phone:
APPROVED FOR
SUBMITTAL:
RECOMMENDATION:
City Manager
Adopt the 2015 Budget for the City of Yakima
ATTACHMENTS:
Description
2015 Budget Transmittal
Upload Date
12/4/2014
Budget in Brief 12/4/2014
2015 Budget Ordinance
2015 Budget Ordinance Schedule 1
12/4/2014
12/4/2014
Type
Cover Memo
Executive
Summary
Ordinance
Ordinance
Memorandum
Date: December 4, 2015
To: The Honorable Mayor and Members of City Council
From: Tony O'Rourke, City Manager
Cindy Epperson, Director of Finance and Budget
Subject: 2015 Budget Adoption
We are pleased to transmit the final 2015 City of Yakima Budget for Council's consideration and
adoption of a balanced and prudent budget of $208.0 million. The 2015 budget represents a 0%
increase over the projected 2014 year-end budget as well as healthy ending reserves of $48.6
million or 23.4% of budgeted expenditures and reduction in the combined operating and debt
service property tax levy of .5%.
As is customary, any changes that are made to the Preliminary Budget previously presented to
Council and the citizenry are summarized in this report, and the Final Budget is presented in
ordinance form for adoption.
CITYWIDE BUDGET UPDATE
The revised total City budget of $208.0 million represents a net increase of $2.4 million more
than the 2015 Preliminary Budget of $205.6 million. The major increases include:
➢ The agreement to provide Union Gap with Fire Service of $1.2 million.
➢ Startup costs for an aquatic center and soccer fields as the result of the passage of
Proposition 1 requiring an additional $750,000 to be spent for Parks and Recreation.
➢ Preliminary engineering for the proposed Yakima Central Plaza of $800,000 supported
50% by community donations.
There was one significant reduction, which was the removal of the proposed Refuse rate
increase and the related programs, which subtracted $386,000 from Revenue and $238,000 from
Expenditures.
As noted, many of the changes have related revenues—Total Citywide revenues increased by
$1.8 million as well.
The following chart summarizes the total City Budget, including the estimated beginning
balance, revenues, expenditures and ending balance.
Page 1 of 10
CITY-WIDE BUDGET SUMMARY
Est. 2015
Beginning
Balance
General Fund $8,394,076
Parks and Recreation 556,239
Street & Traffic Operations 997,502
General Government Subtotal 9,947,817
Utilities/Other Operating 18,743,397
Capital Improvement 19,974,697
Risk Management Reserves 742,707
Employee Benefit Reserves 4,829,352
G.O. Bond Debt Service 340,814
Utility Revenue Bond Debt Svc 1,762,214
Trust and Agency Funds 958,666
Total
Est. 2015
2015 2015 Use of Ending
Revenue Expenditure Reserves Balance
$61,333,941
5,459,455
4,718,610
$60,975,096
5,425,527
5,049,379
358,845 $8,752,921
33,928 590,167
(330,769) 666,733
71,512,006 71,450,002 62,004 10,009,821 14.0%
70,300,373 71,723,236 (1,422,863) 17,320,534
33,874,773 40,743,263 (6,868,490) 13,106,207
3,684,000 3,715,631 (31,631) 711,076
12,509,688 12,865,238 (355,550) 4,473,802
4,700,361 4,709,429 (9,018) 331,746
2,134,280 2,132,155 2,125 1,764,339
620,277 617,777 2,500 961,166
$57,299,664 $199,335,758 $207,956,731 ($8,620,923) $48,678,691 23.4%
GENERAL GOVERNMENT BUDGET UPDATE
The primary change in General Government was the addition of the Union Gap Fire service
contract which added $1,152,755 to the Fire budget, and $1,183,407 in the "Charges for Services"
revenue category. When added to other changes, there was a net revenue increase of $1,022,682,
and a net expenditure increase of $948,955 bringing the total from $70.5 million to $71.5 million.
Revenue
In reviewing sales tax trends, the general sales tax was increased by $10,000 in 2014 and $40,000 in
2015, bringing the growth estimate to 4.5% in the 2015 budget. Other revenue adjustments include:
➢ The removal of the Refuse utility tax increase, and other reductions in utility taxes in
light of updated trends ($128,900).
➢ A reduction in Utility Customer Service Charges coming from City -owned utilities in
response to additional savings identified in the Customer Service budget ($71,825).
➢ The addition of $10,000 in the Licenses and Permits 2014 category, as the year-to-date
actual already met the original estimate.
Expenditures
In addition to the Union Gap Fire service agreement, other changes in expenditures include:
➢ In order to assist the utilities in their cost containment efforts, Utility Customer Service
reviewed their operations in light of the new automated meter reading system and prior
reorganization that established a billing specialist position. It was determined that 1
Water Service Specialist and a 75% Utility Services Representative position could be
Page 2 of 10
eliminated, saving a total of $123,400. It should be noted that both of these positions are
currently vacant. We also looked at what resources we need to continue the process of
replacing the utility billing software system, and added $40,000 in the Professional
Services category to support that transition. In total this division is saving a net $83,400.
➢ Miscellaneous payroll and other corrections in the Police Department, resulting in a net
savings of $76,529.
➢ The balance of $100,000 requested by State Fair Park for SunDome operations. This was
originally in the Tourist Promotion Budget as it is a valid use of Hotel/Motel tax.
However, the Lodging Tax Advisory Committee unanimously approved $75,000 for this
purpose, leaving $25,000 to come from General Fund.
➢ To improve customer service at the Municipal Court a full-time position was restored
and a temporary position was reduced, resulting in a net increase of $25,457.
➢ In reviewing the Police Pension budget, it is appropriate to reduce that estimate by
$52, 700.
➢ There are also a few minor payroll corrections primarily tied to an incorrect benefit
being assigned to temporary positions, resulting in a net reduction of $41,628 in the
General and Parks & Recreation Funds.
The Streets & Traffic Engineering Budget is unchanged from the Preliminary.
The following table details all of the changes made in the General Government Funds:
GENERAL GOVERNMENT FUND CHANGES
2014
# of
2015 Positions
Revenues
General Fund
General Sales Tax $10,000 $40,000
Utility Taxes -Refuse, misc. (128,900)
Utility Customer/City Service Chgs (71,825)
Union Gap Fire Service Contract 1,183,407
Building Permits 10,000
Move Property Tax allocation to Parks (750,000)
General Fund Total 20,000 272,682
Parks and Recreation Fund
Property Tax allocation from General Fund 750,000
Total Changes to General Government Revenues $20,000 $1,022,682
Page 3 of 10
2014
Expenditures
Union Gap Fire Services
Utility Customer Services
Eliminate Vacant Water Service Specialist
Eliminate Vacant .75 Utility Services Representative
Add Professional Services for Billing Software
Sub -Total Utility Customer Service Reductions
Police - Miscellaneous Payroll/Other Corrections
State Fair Park
Municipal Court - Reinstate Full-time Cashier, Elim Temp
Police Pension Reduction
Other Minor Payroll Corrections
Capital Transfer (moved to Parks Fund)
General Fund Total
Parks & Recreation Capital Transfer
Parks Miscellaneous Payroll Corrections/Adjustments
Parks & Recreation Total
Total Changes to General Government Expenditures
Net Change
# of
2015 Positions
$1,152,755
(73,500)
(49,900)
40,000
(83,400)
(76,529)
25,000
25,457 1.00
(52,700)
(4,003)
(750,000)
10.00
(1.00)
(0.75)
(1.75)
236,580 9.25
750,000
(37,625)
712,375
$948,955
$73,727
9.25
General Government Summary
The following table depicts a summary of all 2015 General Government budgets, including a
revenue and expenditure projection, the difference (or the net effect on beginning cash
reserves), the estimated beginning and ending reserve balances, and the percentage of the
ending reserve in comparison to the operating budget.
GENERAL GOVERNMENT BUDGET SUMMARY
General Fund
Parks & Recreation
Street & Traffic Fund
Total General Government
2015
Projected
Revenue
$61,333,941
5,459,455
4,718,610
2015
Proposed
Expenditures
$60,975,096
5,425,527
5,049,379
2015
Exp
as % of
Diff Rev
2015
Estimated
Beginning
Balance
2015
Estimated
Ending
Balance
2015
End Bal
as%of
Exp
358,845
33,928
(330, 769)
$71,512,006
$71,450,002
$62,004
- 0.6%
- 0.6%
7.0%
0.0%
$8,394,076
556,239
997,502
$9,947,817
$8,752,921 14.4%
590,167 10.9%
666,733 13.2%
$10,009,821 14.0%
The 2015 General Government budget is virtually balanced, with the final net change adding
$62,004 to the beginning balance of $9,947,816, so that the 2015 projected ending fund balance is
$10,009,821 which represents 14.0% of the 2015 budgeted expenditures.
Page 4 of 10
OTHER BUDGET ADJUSTMENTS
Other budget adjustments include:
➢ Changes in Hotel/Motel tax allocation which subtracts $25,000 from State Fair Park, and
adds $6,000 to the Sports Commission—the net tax of $19,000 is moving from
Convention Center operating to capital fund.
➢ There was an error in the Capitol Theatre Public Facilities District (PFD), in that the 2014
transfer was estimated to increase beyond current budget authority by about $32,000.
This was subtracted from 2014 year end estimate, and added to the 2015 budget, which
results in no net change in the ending 2015 balance.
➢ The Stormwater operating budget erroneously included taxes tied to a proposed rate
increase. Since the revenue was not budgeted, the additional expense of $91,724 will not
be incurred.
➢ The Refuse Fund did have a rate increase included in its 2015 Preliminary Budget which
is now being postponed. The result is $386,000 is coming out of revenues, with a net of
$237,683 being subtracted from expenditures. After these changes, the ending 2015
balance is estimated to be $244,961, only 4.2% of budgeted expenditures.
➢ With the passage of Proposition 1 on the November 3 election, an additional $750,000 is
dedicated to Parks & Recreation. At their November 10, 2014 Study Session, Council
prioritized the next capital projects to include an aquatic center and a soccer complex to use
this allocation. The Parks & Recreation Capital Fund was increased by $750,000 to
accomplish next steps for these two projects.
➢ The third item approved at the above-mentioned meeting was the Yakima Central Plaza.
Preliminary Engineering for that project is estimated to be $800,000. We are proposing
to use REET 2 funds to match community donations in 2015. However, in order to use
REET funds, the project must be included in the City's Capital Facilities Plan element of
the Comprehensive Plan. (A separate public hearing is being held at this meeting so that
Council can amend the Plan). Preliminary Engineering could be reimbursed by a future
bond issue, but if we choose not to do so, this action would make it an eligible use of
REET funds.
➢ The Water Capital Fund did not fully budget all of their projects, and the final budget is
adding $170,000 to correct this oversight.
➢ As noted in the General Government explanations, there was a minor error in the
calculation of benefits for temporary employees. Miscellaneous payroll adjustments
netted to a reduction of $4,351 across all operating funds.
The following chart details all of the changes from the Preliminary Budget to this Final Budget
for all funds other than General Government.
Page 5 of 10
OTHER FUNDS BUDGET SUMMARY
Revenue
Reduce Hotel/Motel Tax Allocation to match Exp.
Additional Hotel/Motel Tax (tied to operating fund)
Eliminate Rate Increase
Increase Transfer from the Parks Operating Fund
Donations -Yakima Central Plaza (1/2 of estimate)
Total Revenue Change (net)
Expenditures
Reduce allocation to State Fair Park- $100k to $75k
Increase allocation to Sports Commission
Increase Allocation in 2015 (reduced 2014 to stay in bud.)
Taxes over -budgeted
Program reductions
Startup costs for aquatic center and soccer fields
Preliminary Engineering- Yakima Central Plaza
Correct an error in expenditure
Miscellaneous Payroll adjustments
Total Expenditure Change (net)
Tourist Promotion (Convention Center)
Convention Center Capital Fund
Refuse Fund
Parks and Recreation Capital Fund
REET 2 Capital Construction Fund
Tourist Promotion (Convention Center)
Tourist Promotion (Convention Center)
Capitol Theatre PFD Operating Fund
Stormwater Operating Fund
Refuse Fund
Parks and Recreation Capital Fund
REET 2 Capital Construction Fund
Water Capital
Various Operating Funds
Following is a summary of the current status of the 2015 Final Budget. The updated 2015
Budget by City Functional Grouping table provides a 3 year expenditure detail by fund.
2015
($19,000)
19,000
(386,000)
750,000
400,000
$764,000
($25,000)
6,000
32,000
(91,724)
(237,683)
750,000
800,000
170,000
(4,351)
$1,399,242
Page 6 of 10
THREE-YEAR BUDGET COMPARISON - 2015 BUDGET BY CITY FUNCTIONAL GROUPING
2013
Actual
Expenditures
General Government
City Management $366,983
Indigent Defense 541,656
City Council 286,511
City Clerk/Records 437,577
Human Resources 442,846
Legal 1,247,205
Municipal Court 1,330,831
Planning 517,298
Code Administration 1,381,740
City Hall Maintenance 360,378
Economic Development 503,185
Police 25,830,291
Fire 9,709,330
Gang Free Initiative -
Emergency Preparedness -
Information Systems 2,298,015
Intergovernmental 260,749
Transfers 3,019,305
Nonrecurring Expenses -
Financial Services 1,461,274
State Examiner 103,729
Police Pension 1,344,773
Utility Services 1,405,941
Purchasing 549,153
Engineering 654,156
Total General Fund $54,052,924
Parks & Recreation 4,261,347
Street & Traffic Operations 5,225,208
Total General Government Funds $63,539,479
2014 2014 2015 2015 2015 2015 2015 2015
Amended Year -End Proposed vs 2014 Projected Use of Beginning Est. Ending
Budget Estimate Expenditures Estimate Revenue Reserves Fund Balance Fund Balance
$372,684 $370,196 $389,578 3.7%
650,500 650,500 1,000,500 53.8%
290,199 291,163 286,735 (1.5%)
583,921 583,485 592,904 1.7%
513,151 559,444 664,003 18.7%
1,359,323 1,370,353 1,516,072 10.6%
1,344,118 1,333,646 1,395,989 4.7%
497,481 476,414 581,384 22.0%
2,639,371 2,649,654 1,682,327 (36.5%)
422,885 399,221 523,868 31.2%
511,733 449,242 702,329 56.3%
26,278,167 25,915,548 26,610,805 2.7%
10,387,649 10,312,002 11,833,188 3.6%
333,105 330,972 230,820 (30.3%)
9,500 212,246 2134.2%
3,047,612 2,953,110 2,892,348 (2.0%)
244,031 244,031 174,989 (28.3%)
4,942,275 4,442,275 4,793,875 24.8%
(950,000) - (1,025,000) n/a
1,488,836 1,514,908 1,594,263 5.7%
110,000 110,000 110,000 0.0%
1,343,325 1,174,237 1,167,200 3.9%
1,465,199 1,421,634 1,499,446 11.3%
549,369 559,132 654,699 17.1%
1,109,632 845,776 890,530 5.3%
$59,534,570 $58,966,443 $60,975,096 3.0% $61,333,941 358,845 $8,394,076 $8,752,921
4,556,548 4,545,867 5,425,527 3.7% 5,459,455 33,928 556,239 590,167
4,821,409 4,814,188 5,049,379 4.9% 4,718,610 (330,769) 997,502 666,733
$68,912,527 $68,326,497 $71,450,002 3.2% $71,512,006 $62,004 $9,947,817 $10,009,821
Page 7 of 10
Actual Amended Year -End Preliminary vs 2014 Projected Use of Fund Beginning Est. Ending
Expenditures Budget Estimate Budget Estimate Revenue Balance Fund Balance Fund Balance
Other Operating/Enterprise
Economic Development $279,489 $456,622 $456,622 $235,766 (48.4%) $222,000 ($13,766) $54,866 $41,100
Community Development 1,856,349 3,120,096 3,109,287 1,479,188 (52.4%) 1,474,337 (4,851) 685,166 680,315
Community Relations 912,037 601,850 589,455 610,714 3.6% 596,600 (14,114) 547,378 533,264
Cemetery 236,530 278,900 269,920 291,709 8.1% 264,950 (26,759) 49,291 22,532
Emergency Services 1,173,571 1,339,282 1,309,446 1,312,692 0.2% 1,290,026 (22,666) 183,768 161,102
Public Safety Communications 3,256,565 3,219,521 2,943,359 4,438,988 50.8% 4,095,799 (343,189) 754,237 411,048
Police Grants 837,871 469,024 435,624 475,296 9.1% 484,000 8,704 307,019 315,723
Downtown Improvement District 257,863 244,358 232,750 197,500 (15.1%) 197,840 340 5,270 5,610
Trolley (Yakima Interurban Lines) 15,921 166,850 116,501 57,046 (51.0%) 53,624 (3,422) 26,104 22,682
Front St Business Impr Area 6,368 9,000 5,000 7,000 40.0% 3,735 (3,265) 4,410 1,145
Tourist Promotion (Cony Ctr) 1,428,327 1,483,667 1,483,667 1,609,854 8.5% 1,674,250 64,396 544,155 608,551
Capitol Theatre 347,771 342,020 342,020 396,540 15.9% 395,250 (1,290) 26,387 25,097
PFD Revenue -Convention Center 682,472 645,000 640,000 748,220 16.9% 816,750 68,530 407,215 475,745
Tourist Promotion Area 643,696 687,000 650,000 687,000 5.7% 687,000 73,324 73,324
PFD Revenue -Capitol Theatre 516,772 531,000 531,000 640,220 20.6% 618,700 (21,520) 168,122 146,602
Airport Operating Fund 754,569 1,130,293 1,083,863 1,099,337 1.4% 1,108,889 9,552 1,879 11,431
Stormwater Operating 2,063,834 2,325,519 2,315,822 3,353,229 44.8% 2,151,000 (1,202,229) 1,299,362 97,133
Transit 7,717,943 8,240,033 7,989,823 8,581,432 7.4% 8,519,226 (62,206) 1,280,164 1,217,958
Refuse 5,656,791 5,864,823 5,846,975 5,877,188 0.5% 5,834,599 (42,589) 287,550 244,961
Wastewater Operating 19,461,184 20,363,432 20,282,066 20,901,186 3.1% 21,431,302 530,116 2,997,144 3,527,260
Water Operating 8,539,064 9,022,649 8,909,509 9,347,579 4.9% 8,876,000 (471,579) 2,865,962 2,394,383
Irrigation Operating 1,498,594 2,063,884 1,828,565 1,795,875 (1.8%) 1,766,200 (29,675) 876,723 847,048
Equipment Rental 5,930,216 5,671,800 5,330,898 5,411,876 1.5% 5,612,858 200,982 4,413,523 4,614,505
Environmental Fund 48,077 192,950 192,681 1,007,950 423.1% 1,010,000 2,050 481,551 483,601
Public Works Administration 1,106,896 1,243,866 1,227,371 1,159,849 (5.5%) 1,115,438 (44,411) 402,827 358,416
Total Other Operating/Enterprise $65,228,773 $69,713,439 $68,122,223 $71,723,236 5.3% $70,300,373 ($1,422,863) $18,743,397 $17,320,534
Page 8 of 10
Actual Amended Year -End Preliminary vs 2014 Projected Use of Fund Beginning Est. Ending
Expenditures Budget Estimate Budget Estimate Revenue Balance Fund Balance Fund Balance
Capital Improvement
Arterial Street $6,307,833 $5,106,566 $3,799,078 $1,881,134 (50.5%) $1,822,913 ($58,221) $1,222,902 $1,164,681
C.B.D. Capital Improvement 220,508 131,000 106,152 91,000 (14.3%) 26,220 (64,780) 123,332 58,552
Capitol Theatre Construction - 140,000 140,000 50,000 n/a 71,927 21,927 4,473 26,400
Yakima Rev Development Area 749,007 2,473,235 835,000 3,500,000 319.2% 1,900,000 (1,600,000) 2,793,687 1,193,687
Parks & Recreation Capital 99,949 100,000 100,000 1,750,000 1650.0% 1,700,000 (50,000) 239,590 189,590
Fire Capital 692,044 882,808 882,808 2,254,159 155.3% 1,963,500 (290,659) 375,181 84,522
Law & Justice Capital 4,944,007 884,796 913,159 639,636 (30.0%) 554,886 (84,750) 610,528 525,778
Public Works Trust Construction 824,324 732,773 719,010 1,028,084 43.0% 836,449 (191,635) 592,513 400,878
REET 2 Capital Construction 506,822 772,787 772,787 1,572,787 103.5% 1,152,000 (420,787) 514,273 93,486
Street Capital Fund (75) 16,500,000 17,535,000 n/a 20,811 20,811 38,171 58,982
Convention Center Capital Impr 173,671 402,311 426,846 490,000 14.8% 229,500 (260,500) 465,050 204,550
Cum. Reserve for Capital Impr 8,928,559 4,948,000 6,518,836 2,245,000 (65.6%) 50,000 (2,195,000) 2,285,306 90,306
Airport Capital 299,599 11,162,885 1,306,399 12,539,721 859.9% 12,776,500 236,779 537,821 774,600
Stormwater Capital 160,812 790,000 790,000 2,025,000 156.3% 940,000 (1,085,000) 1,244,734 159,734
Transit Capital Reserve 62,755 1,989,000 1,996,000 1,749,000 (12.4%) 1,868,507 119,507 2,264,727 2,384,234
Wastewater Facilities Capital Rsv 10,711 400,000 400,000 600,000 50.0% 600,000 1,147,941 1,147,941
Wastewater Construction 3,290,740 4,793,813 1,887,000 3,280,000 73.8% 500,000 (2,780,000) 4,189,960 1,409,960
Water Capital 6,588,042 5,525,019 4,620,000 2,670,000 (42.2%) 750,000 (1,920,000) 3,496,315 1,576,315
Wastewater Capital 9,666,631 9,663,679 3,754,000 810,000 (78.4%) 4,681,500 3,871,500 (3,156,070) 715,430
Irrigation Capital 796,777 1,621,504 1,060,129 1,567,742 47.9% 1,430,060 (137,682) 984,263 846,581
Total Capital Improvement $44,322,717 $69,020,176 $48,562,205 $40,743,263 (16.1%) $33,874,773 ($6,868,490) $19,974,697 $13,106,207
Contingency/Operating Reserves
FRS/Capitol Theatre Reserve
Risk Management
Total Contingency/Operating Rsys
$71,927
3,706,744
$71,927
3,299,649
$71,927
3,571,925
$71,927 0.0% $0 ($71,927) $108,568 $36,641
3,643,704 2.0% 3,684,000 40,296 634,139 674,435
$3,778,671
$3,371,576 $3,643,852
$3,715,631 2.0% $3,684,000 ($31,631) $742,707 $711,076
Page 9 of 10
Actual Amended Year -End Preliminary vs 2014 Projected Use of Fund Beginning Est. Ending
Expenditures Budget Estimate Budget Estimate Revenue Balance Fund Balance Fund Balance
Employee Benefit Reserves
Unemployment Compensation $155,204 $286,582 $192,308 $323,177 68.1% $197,000 ($126,177) $396,415 $270,238
Employees Health Benefit 9,945,429 9,867,703 10,206,343 9,745,849 (4.5%) 9,823,850 78,001 2,483,372 2,561,373
Workers' Compensation 1,131,336 1,258,630 1,302,286 1,241,131 (4.7%) 1,033,000 (208,131) 820,971 612,840
Wellness/EAP 117,595 176,300 176,300 174,800 (0.9%) 175,000 200 178,629 178,829
Firemen's Relief & Pension 1,229,569 1,259,308 1,250,483 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 $12,865,238 (2.0%) $12,509,688 ($355,550) $4,829,352 $4,473,802
Trust and Agency Funds
Cemetery Trust
YakCorps
Total Trust and Agency Funds
$6,300
587,004
$12,000 $12,000
610,671 610,671
$12,000
605,777
$593,304
$622,671 $622,671
$617,777
0.0%
(0.8%)
(0.8%)
$14,500 $2,500 $625,396 $627,896
605,777 333,270 333,270
$620,277
$2,500 $958,666 $961,166
Debt Service
L.I.D. Guaranty $35,000 $0 $0 $0 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 2,129,660 2,146,886 2,144,786 2,132,155 (0.6%) 2,134,280 2,125 1,762,214 1,764,339
Total Debt Service $5,797,549 $7,115,735 $5,490,865 $6,841,584 24.6% $6,834,691 ($6,893) $2,103,028 $2,096,135
Total City Budget $195,839,626
$231,604,648 $207,896,033
$207,956,731 0.0% $199,335,808 ($8,620,923) $57,299,664 $48,678,741
Page 10 of 10
em of Ya&ira
2015 BUDGET IN BRIEF
The Budget In Brief provides a high-level overview of the final 2015 budget, along with significant issues
that are anticipated to have a material impact in 2015.
Even as the local economy is gradually bouncing back to pre -recession levels, we are still struggling with
underlying conditions that has Yakima's unemployment and poverty rates higher than the state and
national averages. Given these economic challenges, the 2015 budget is balanced within available
resources without new taxes, and is responsive to the City Council's strategic priorities and the
community's needs. To that end, this budget is driven by the results of the 2014 Citizen Survey that
expressed a strong need to address the City's public safety challenges and deferred infrastructure
backlog, and to improve the appearance of the community and stimulate economic development.
2014 VS. 2015 BUDGET COMPARISON AND 2015 BUDGET OVERVIEW
The chart below compares the 2014 year-end estimate to the 2015 budget in summary format.
2014 ESTIMATE / 2015 BUDGET COMPARISON
Fund
Revenues Expenditures
2014 2014
Year -End 2015 % Year -End 2015 %
Estimate Budget Chng Estimate Budget Chng
General $58,231,636 $61,333,941 5.3% $58,966,443 $60,975,096 3.4%
Parks and Recreation 4,519,614 5,459,455 20.8% 4,545,867 5,425,527 19.4%
Street & Traffic Operations 4,639,310 4,718,610 1.7% 4,814,188 5,049,379 4.9%
General Gov't Subtotal 67,390,560 71,512,006 6.1% 68,326,497 71,450,002 4.6%
Utilities/Other Operating
Capital Improvement
Risk Management Reserves
Employee Benefit Reserves
G.O. Bond Debt Service
Utility Rev Bond Debt Service
Trust and Agency Funds
Total
69,452,999
45,047,419
3,367,000
12,071,536
3,187,741
2,146,286
625,171
70,300,373
33,874,773
3,684,000
12,509,688
4,700,361
2,134,280
620,277
$203,288,712 $199,335,758
1.2%
(24.8%)
9.4%
3.6%
47.5%
(0.6%)
(0.8%)
(1.9%)
68,122,223
48,562,205
3,643,852
13,127,720
3,346,079
2,144,786
622,671
71,723,236
40,743,263
3,715,631
12,865,238
4,709,429
2,132,155
617,777
$207,896,033 $207,956,731
5.3%
(16.1%)
2.0%
(2.0%)
40.7%
(0.6%)
(0.8%)
0.0%
The estimated revenues for all funds, including beginning balances, are $199.3 million. This represents a
decrease of S4.0 million or 1.9% less than the 2014 Year -End Estimate of $203.3 million.
The expenditure budget for FY 2015 for all funds is $208.0 million. This is about the same as the 2014 Year -
End Estimate.
Budget in Brief -1
2015 BUDGET SUMMARY
Est. 2015 Est. 2015
Beginning 2015 2015 Use of Ending
Balance Revenue Expenditure Reserves Balance
General Fund $8,394,076 $61,333,941 $60,975,096 358,845 $8,752,921
Parks and Recreation 556,239 5,459,455 5,425,527 33,928 590,167
Street & Traffic Operations 997,502 4,718,610 5,049,379 (330,769) 666,733
General Government Subtotal 9,947,817 71,512,006 71,450,002 62,004 10,009,821
Utilities/Other Operating 18,743,397 70,300,373 71,723,236 (1,422,863) 17,320,534
Capital Improvement 19,974,697 33,874,773 40,743,263 (6,868,490) 13,106,207
Risk Management Reserves 742,707 3,684,000 3,715,631 (31,631) 711,076
Employee Benefit Reserves 4,829,352 12,509,688 12,865,238 (355,550) 4,473,802
G.O. Bond Debt Service 340,814 4,700,361 4,709,429 (9,018) 331,746
Utility Revenue Bond Debt Svc 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 $57,299,664 $199,335,758 $207,956,731 ($8,620,923) $48,678,691
➢ The use of reserves of $8.6 million is programmed to be primarily out of capital funds, which is
typical as reserves are built over time to be used in major projects. Both Wastewater and Water
utilities are in the middle of major capital programs, and Transit is purchasing 3 buses.
➢ The operating funds are set with conservative revenue estimates—even though many of them are
budgeted to use reserves, it is likely that future revenue will exceed budget, bringing them closer to
"break-even" by next year-end.
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%.
➢ All of the five utilities (Water, Wastewater, Stormwater, Irrigation and Refuse) are not budgeting
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
➢ 764.17 total proposed full-time (FTE) positions in all funds for Fiscal Year 2015.
➢ A net increase of 13.75 FTE's from 2014.
➢ Refer to the General Staffing section in the 2015 Preliminary Budget document for more
information.
Budget in Brief - 2
Capital Improvements
➢ The City will invest $42.2 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.
General Government Revenues/Balancing
Ad valorem taxes - To ensure its long-term financial success, the City is proposing to set its operating
property tax levy at rate of $3.122 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.
The 2015 General Government incremental revenue growth of $4.1 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.
➢ 4.5% growth in sales tax (over 6% annual growth the past three years). $680,000
➢ Franchise and utility tax growth of 4.6%. $740,000
➢ Charge for services base growth of 1.9%, plus $1.2 million for Union Gap $1,307,000
Fire services.
➢ Proposed sale of two Tiger Mart sites. $400,000
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, the City Manager 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.
Budget in Brief - 3
MAJOR POLICY CONSIDERATIONS
The 2015 budget includes the following investments in the community's key priorities:
Strategic Priority
Budgeted Item(s)
Invest in Public Safety
Add Two Police Officers to Federal Task Force
Upgrade Four Police Officer Positions to Corporal
Add Part-time Human Resources Assistant for Police Recruitment
Add One Police Public Information Officer
Yakima County Firing Range Partnership
Replace Jail Control Panel
Live Scan Fingerprinting System
$175,000
25,000
45,000
64,000
150,000
165,000
7,000
$4,167,000
Radio Replacement Program
15,000
Complete SWAT Communications Center Upgrade
31,000
Communications Center Relocation
1,213,000
Fire Ladder Truck
1,150,000
Fire Engine
450,000
Rehab/Breathing Air Resource Unit
75,000
Indigent Defense Services
550,000
Emergency Preparedness
52,000
Cascade Mill Site
3,500,000
Enhance/Expand Downtown Events
102,000
Hire an Economic Development Department Assistant
66,000
Invest in Economic
SunDome Investment
100,000
Development
$4,089,000
Airport Marketing
125,000
Relocate Visitor Information Center
130,000
Wine, Craft Beer and Cider Marketing/Branding
50,000
Update Expansion Feasibility Study
16,000
Airport Taxiway/Airfield Lighting Improvements
12,500,000
North 1st Street Improvements
1,300,000
21st Avenue Road Improvements
175,000
Randall Park Improvements
900,000
Improve the Built
Lincoln Underpass Sidewalk & Artwork
600,000
Environment
$26,380,000
City Hall Improvements
440,000
Irrigation Improvements
1,250,000
Water System Improvements
2,500,000
Wastewater Improvements
4,690,000
Stormwater Improvements
2,025,000
Capitol Theatre Management Fee Increase
50,000
Partnership Development
Convention Center Management Fee Increase
13,000
$171,000
Southeast Community Center Improvements
100,000
Sports Commission Fee Increase
8,000
Customer Service Training
100,000
Public Trust and
Purchasing Software
25,000
Accountab ility
$177,500
Annual Citizen Survey
35,000
Annual Employee Survey
17,500
Budget in Brief - 4
2015 EXPENDITURE BUDGET BY FUND
($207.9 MILLION)
Capital
Improvement
$40.7
19.6%
Utilities/Other
Operating
$71.7
34.5%
Risk Management
Reserves
$3.7 Employee
1.8% Benefit
Reserves
$12.9
5.8%
Street & Traffic Parks and
Operations Recreation
$5.1 $5.4
2.4% 2.6%
2015 RESOURCES BUDGET BY FUND
($256.6 MILLION)
Capital
Improvement
$53.9
21.0%
Utilities/Other
Operating
$59.0
34.7%
Resources =
Revenues plus
Beginning Fund
Risk Management
Reserves
$4.4
1.7%
G.O. Bond Debt
Service
$4.7
2.3%
Utility Revenue
Bond Debt Service
$2.1
1.0%
Trust and Agency
Funds
$0.6
0.3%
General Fund
$61.0
29.3%
G.O. Bond Debt
Service
Employee $5.1
Benefit 2.0%
Reserves
$17.3
6.7% Utility Revenue
Bond Debt Service
/5.9
1.5%
Parks and
Street & Traffic Recreation
Operations $6.0
$5.7 2.3%
2.2%
Trust and Agency
Funds
$1.6
0.6%
General Fund
$69.7
27.2%
Budget in Brief - 5
AN ORDINANCE
ORDINANCE NO. 2014 -
adopting a budget for the City of Yakima, Washington, for the
year 2015; and making appropriations for estimated
expenditures.
WHEREAS, on or before the 28th day of October, 2014, a Preliminary Budget
Summary for the City of Yakima for the year 2015 was duly filed with the Director of
Finance and City Clerk of the City of Yakima and submitted to the Yakima City Council,
all in accordance with applicable laws, and
WHEREAS, subsequent to October 28, 2014, the City Council held hearings on
the budget and on parts thereof, and on November 18, 2014 and on December 2, 2014,
the City Council held its formal public hearing on the budget all in accordance with
applicable laws, and
WHEREAS, subsequent to its formal public hearing, the City Council made
adjustments and changes to the budget as the Council deemed necessary or proper and
determined the allowance in each item, department, classification and fund, all as set
forth in the final budget document attached hereto, all in accordance with applicable
laws, now, therefore,
BE IT ORDAINED BY THE CITY OF YAKIMA:
Section 1. The budget for the City of Yakima, Washington, for the year 2015 is
hereby adopted in its final form and content as set forth in the budget document entitled
"City of Yakima, Annual Budget - 2015," which is attached hereto as Schedule A and
incorporated by reference herein. There is hereby appropriated for expenditure during
the year 2015 the aggregate amounts listed on the attached Schedule A for each
separate fund of the City, all in accordance with Title 3 of the City of Yakima Municipal
Code. Pursuant to Article II, Section 9 of the City Charter, the City Manager shall
administer the expenditure of all funds appropriated herein, and the City Manager is
authorized to take all necessary and prudent actions to implement the City Council's
expenditure directives and budget appropriations.
Section 2. The City Clerk is directed to transmit a certified copy of the budget
hereby adopted to the Division of Municipal Corporations in the Office of the State
Auditor and to the Association of Washington Cities.
Section 3. This ordinance is one required to be made by the laws of the State of
Washington, and shall be in full force and effect on January 1, 2015, upon its passage
and publication as provided by law.
PASSED BY THE CITY COUNCIL, signed and approved this 9th day of
December, 2014.
ATTEST:
Micah Cawley, Mayor
City Clerk
Publication Date:
Effective Date:
City of Yakima
Annual Budget - 2015
Schedule A
Summary of Appropriations by Fund
Fund/Description
000 General Fund
123 Economic Development
124 Community Development
125 Community Relations
131 Parks & Recreation
141 Streets & Traffic Operations
142 Arterial Street
144 Cemetery
150 Emergency Services
151 Public Safety Communications
152 Police Grants
161 Downtown Improvement District
162 Trolley (Yakima Interurban Lines)
163 Front St Business Impr Area
170 Tourist Promotion (Cony Ctr)
171 Capitol Theatre
172 PFD Revenue -Convention Center
173 Tourist Promotion Area
174 PFD Revenue -Capitol Theatre
198 FRS/Capitol Theatre Reserve
221 LID. Guaranty
272 PFD Debt Service
281 General Obligation Bonds
283 1994 CJ/I-82 LT GO Bonds
284 1995 UT GO Bonds
287 1996 LT GO Convention Center Bonds
289 LID. Debt Service
321 CBD Capital Improvement
322 Capitol Theatre Construction
323 Yakima Rev Development Area
331 Parks & Recreation Capital
332 Fire Capital
333 Law & Justice Capital
342 Public Works Trust Construction
343 REET 2 Capital Construction
344 Street Capital Fund
370 Convention Center Capital Impr
392 Cum. Reserve for Capital Impr
421 Airport Operating Fund
422 Airport Capital Fund
441 Stormwater Operating
2015
Projected
Resources
69,728,017
276,866
2,159,503
1,143,978
6,015,694
5,716,112
3,045,815
314,241
1,473,794
4,850,036
791,019
203,110
79,728
8,145
2,218,405
421,637
1,223,965
760,324
786,822
108,568
25,314
1,176,638
3,018,920
0
0
497,215
323,138
149,552
76,400
4,693,687
1,939,590
2,338,681
1,165,414
1,428,962
1,666,273
58,982
694,550
2,335,306
1,110, 768
13,314,321
3,450,362
2015
Budget
Appropriations
60,975,096
235,766
1,479,188
610,714
5,425,527
5,049,379
1,881,134
291,709
1,312,692
4,438,988
475,296
197,500
57,046
7,000
1,609,854
396,540
748,220
687,000
640,220
71,927
0
1,026,050
3,010,189
0
0
428,190
245,000
91,000
50,000
3,500,000
1,750,000
2,254,159
639,636
1,028,084
1,572,787
0
490,000
2,245,000
1,099,337
12,539,721
3,353,229
of
Budget
29.3%
0.1%
0.7%
0.3%
2.6%
2.4%
0.9%
0.1%
0.6%
2.1%
0.2%
0.1%
0.0%
0.0%
0.8%
0.2%
0.4%
0.3%
0.3%
0.0%
0.0%
0.5%
1.4%
0.0%
0.0%
0.2%
0.1%
0.0%
0.0%
1.7%
0.8%
1.1%
0.3%
0.5%
0.8%
0.0%
0.2%
1.1%
0.5%
6.0%
1.6%
Page 1 of 2
City of Yakima
Annual Budget - 2015
Schedule A
Summary of Appropriations by Fund
Fund/Description
442 Stormwater Capital
462 Transit
464 Transit Capital Fund
471 Refuse
472 Wastewater Facilities Capital Rsv
473 Wastewater Operating
474 Water Operating
475 Irrigation Operating
476 Wastewater Construction
477 Water Capital
478 Wastewater Capital
479 Irrigation Capital
481 1998 Water Revenue Bond Reserve
483 1996 Wastewater Revenue Bond Reserve
484 1991 Water/Wastewater Revenue Bond Red
486 2008 Water Bonds
488 2008 Wastewater Bonds
489 1991 Water/Wastewater Revenue Bond Red
491 2004 Irrigation Bonds
493 2003 Wastewater Bonds
494 Revenue Bond
512 Unemployment Compensation
513 Employees Health Benefit
514 Workers' Compensation
515 Risk Management
516 Wellness/EAP
551 Equipment Rental
555 Environmental Fund
560 Public Works Administration
612 Firemen's Relief & Pension
632 YakCorps
710 Cemetery Trust
2015
Projected
Resources
2,184, 734
9,799,390
4,133,234
6,122,149
1,747,941
24,428,446
11,741,962
2,642,923
4,689,960
4,246,315
1,525,430
2,414,323
272,607
149,863
114,528
244,691
411,415
975,700
352,554
1,166,265
208,871
593,415
12,307,222
1,853,971
4,318,139
353,629
10,026,381
1,491,551
1,518,265
2,230,803
939,047
639,896
2015
Budget
Appropriations
2,025,000
8,581,432
1,749,000
5,877,188
600,000
20,901,186
9,347,579
1,795,875
3,280,000
2,670,000
810,000
1,567,742
0
0
0
237,700
411,413
0
317,742
1,165,300
0
323,177
9,745,849
1,241,131
3,643,704
174,800
5,411,876
1,007,950
1,159,849
1,380,282
605,777
12,000
of
Budget
1.0%
4.1%
0.8%
2.8%
0.3%
10.1%
4.5%
0.9%
1.6%
1.3%
0.4%
0.8%
0.0%
0.0%
0.0%
0.1%
0.2%
0.0%
0.2%
0.6%
0.0%
0.2%
4.7%
0.6%
1.8%
0.1%
2.6%
0.5%
0.6%
0.7%
0.3%
0.0%
256,635,472 207,956,731 100.0%
Page 2 of 2