HomeMy WebLinkAbout05/05/2015 05A 2014 Year End Budget Revenue & Expenditure ReportBUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No. 5.A.
For Meeting of: May 5, 2015
ITEM TITLE: 2014 Year -End Budget Revenue & Expenditure Report
SUBMITTED BY: Tony O'Rourke, City Manager
Cindy Epperson, Finance Director
SUMMARY EXPLANATION:
As previously projected, actual 2014 budget performance was effectively managed so that overall
departmental expenditures have again been restrained below authorized budget levels. As a result, the
City's final year-end 2014 financial position improved. In total across all funds, the City collected $200.5
million and expended $197.8 million, netting an increase in total fund balances for all funds of $2.7
million.
General Government Revenues approximated the amended budget, as did expenditures, so that General
Government temporarily used about $1.47 million, with most of that being for the purchase of the Tiger
Mart properties for environmental clean-up and eventual sale. General Government operating reserve
balance is $9.4 million, which is 14.0% of 2014 revenues. This is below the recommended minimum of
16.7%, although if the Tiger Mart property purchase is subtracted, the percentage moves to 15.6%.
Total 2014 actual expenditure for all funds was $197.8 million compared to the 2014 amended budget of
$235.1 million -- $37.3 million or 15.9% less than the City Council's authorized appropriation level,
primarily due to deferred spending for major Capital Improvement Projects, which are or will be re -
budgeted for 2015. All other funds ended 2014 with fund balances at expected levels.
Conclusion:
Given the current state of the local and national economy, the state of the worldwide affairs and the related
potential impacts to all government entities, City management has taken a conservative approach to
budgeting of revenues and continues to maintain controls on expenditures. Overall, the 2014 year-end
fiscal position reflects that the City of Yakima was able to effectively manage its economic environment.
Resolution: Ordinance:
Other (Specify): 2014 Year -End Budget Report
Contract: Contract Term:
Start Date: End Date:
Item Budgeted: NA Amount:
Funding Source/Fiscal Impact:
Strategic Priority:
Insurance Required? No
Mail to:
Phone:
APPROVED FOR
SUBMITTAL:
RECOMMENDATION:
Accept Report
ATTACHMENTS:
Description
CI 2014 Year End Budget Report
Public Trust and Accountability
City Manager
Upload Date
4/27/2015
Type
Cover Memo
MEMORANDUM
April 30, 2015
TO: The Honorable Mayor and
Members of the City Council
FROM: Tony O'Rourke, City Manager
Cindy Epperson, Director of Finance & Budget
SUBJECT: 2014 Year -End Financial Monitoring Report
We are submitting for your review the City of Yakima's 2014 year-end actual results compared
to budgeted Revenue and Expenditure Report for all city funds. Balances shown are subject to
final adjustments made as a result of the year-end closing process, which will not be officially
concluded until the State Auditor's work is completed this summer.
Overall, 2014 budget performance has produced a stable revenue position, while citywide
departmental expenditures have been restrained below authorized budget levels.
General Government operations temporarily used fund balance of $1.47 million to purchase the
Tiger Mart properties for environmental clean-up and eventual re -sale; and to cover some
extraordinary risk management expenses. Total revenue for all funds is $200.5 million, while
total expended is $197.8 million, adding $2.7 million to citywide reserve balances.
This report is summarized by type of fund, and reported by functional type, in the following order:
> Performance at a Glance - Financial Monitoring System
> City -Wide Overview
> General Fund Revenue Analysis
> General Fund Expenditure Analysis
> Other Funds Analysis
> Top 10 Capital Project
> Exhibits — Fund detail that supports the summaries:
• Exhibit I — Other Operating/Enterprise Funds
• Exhibit II — Capital Improvement Funds
• Exhibit III — Reserve and Other Funds
• Exhibit IV — Bond Redemption Funds
FIN Report 2014 4th Qrtr.docx 1 of 16
PERFORMANCE AT A GLANCE
General Fund
Revenues
Expenditures
Fund Balance
Operating/Enterprise Funds (1)
Capital Funds (1)
Reserve, Trust & Agency Funds (1)
Bond Redemption Funds (1)
STATUS PAGE
NORMAL
NORMAL
NORMAL
NORMAL
NORMAL
NORMAL
NORMAL
Legend•
Revenues exceed budget >5%, Expenditures below budget >5%
Revenues exceed budget <5%, Expenditures below budget <5%
Revenues below budget between 3-5%
Revenues below budget >5%
(1) These funds are graded on a net Revenue measurement.
3-6
3/6-7
8-9
10 -11 /13
10 -11 /14
10-11/15
10-11/16
POSITI
NORMAL
WARNING
FIN Report 2014 4th Qrtr dour 2 of 16
CITY WIDE OVERVIEW
REVENUE COMPARISON
(Budget vs. Actual - 100% of year)
General
Parks and Recreation
Street & Traffic Operations
General Government Subtotal
Operating/Enterprise Funds
Capital Funds
G.O. Bond Redemption Funds
Utility Revenue Bond Redemption Funds
Employee Benefit Reserves
Operating Reserves
Trust and Agency Funds
Total
General
Parks and Recreation
Street & Traffic Operations
General Government Subtotal
2013
2013 Percent
Actual Rec'd
Amended
Budget
2014
2014 Percent
Actual Rec'd
$53,999,004 101.6% $58,276,563 $58,263,806 100.0%
4,381,894 107.3% 4,470,215 4,476,359 100.1%
5,132,422 94.8% 4,631,360 4,636,264 100.1%
63,513,320 101.3% 67,378,138 67,376,429 100.0%
65,588,762
45,304,346
3,521,842
2,131,686
13,522,989
3,516,118
544,545
$197,643,608
99.5% 66,199,204 68,298,463 103.2%
86.0% 58,070,847 43,773,039 75.4%
92.4% 4,809,441 3,087,352 64.2%
100.1% 2,146,286 2,146,286 100.0%
92.4% 11,802,538 11,794,788 99.9%
98.0% 3,360,500 3,433,827 102.2%
103.1% 625,171 569,499 91.1%
96.0% $214,392,125 $200,479,683 93.5%
EXPENDITURE COMPARISON
(Budget vs. Actual - 100% of year)
Operating/Enterprise Funds
Capital Funds
G.O. Bond Redemption Funds
Utility Revenue Bond Redemption Funds
Employee Benefit Reserves
Operating Reserves
Trust and Agency Funds
Total
2013
2013 Percent Amended
Actual Spent Budget
$54,052,926
4,261,347
5,225,208
63,539,481
64,474,200
44,099,580
3,667,889
2,127,561
12,579,133
3,778,671
593,304
$194,859,819
100.0%
99.7%
95.2%
99.6%
$59,534,566
4,556,548
4,821,409
2014
2014
Actual
$59,495,991
4,553,121
4,800,608
68,912,523 68,849,720
Percent
Spent
99.9%
99.9%
99.6%
99.9%
97.1% 69,713,439 65,051,599 93.3%
70.7% 71,712,176 41,348,119 57.7%
95.7% 4,968,849 3,206,285 64.5%
100.0% 2,144,786 2,144,786 100.0%
86.0% 13,338,523 13,154,247 98.6%
96.4% 3,651,576 3,324,816 91.1%
100.0% 622,671 675,046 108.4%
89.5% $235,064,543 $197,754,618 84.1%
FIN Report 2014 4th Qrtr.docx 3 of 16
GENERAL GOVERNMENT REVENUE ANALYSIS
GENERAL GOVERNMENT REVENUES
2014
-------- Revenues through 12/31 ------ Amended Percent
2012 2013 2014 Budget Receipted Status
General Sales Tax $13,494,843
Cron Justice Sales Tax 2,497,008
Property Tax 15,335,402
Utility & Franchise Taxes 14,429,011
Charges for Services 5,664,903
State Shared Revenue 2,992,529
Other Intergovernmental 1,227,856
Fines and Forfeitures 1,512,477
Other Taxes 1,386,334
Transfers from other Funds 1,480,318
Licenses and Permits 892,282
Other Revenue 667,283
$14,462,963 $15,461,201 $15,200,000 101 7%
2,922,211 3,103,814 2,970,000 104 5%
15,696,436 16,016,029 15,954,000 100 4%
14,719,274 15,848,483 15,892,500 99 7%
6,016,642 6,684,115 7,243,689 92 3%
2,701,780 2,648,633 2,835,400 93 4%
1,367,881 1,389,163 1,320,171 105 2%
1,603,138 1,578,124 1,670,000 94 5%
1,462,506 1,453,227 1,420,500 102 3%
1,327,401 1,396,082 1,463,000 95 4%
817,750 865,334 769,200 112 5%
415,338 932,224 639,678 145 7%
Total Revenue 61,580,246
Beginning Fund Balance 9,948,220
Total Resources
63,M3,320 67,376,429 67,378,138 100 0%
10, 908,0 94 10,883,753 10, 883, 753
$71,528,466 $74,421,414 $78,260,182 $78,261,891 100 0%
NORMAL
NORMAL
NORMAL
NORMAL
NORMAL
NORMAL
NORMAL
NORMAL
NORMAL
NORMAL
NORMAL
NORMAL
NORMAL
NORMAL
Sales Tax — The fourth quarter continued the annual growth trend, so that the City ended 2014 6.9% ahead of
2013. 2013 ended 7.2% ahead of 2012 actual. This is the third year in a row of a growth rate of between 6.9
and 7 2% This growth was driven primarily by good volume, quality and market conditions for the areas
agricultural commodities, and corresponding increases in construction activity. The Criminal Justice Sales
Tax experienced similar results. However, this revenue is allocated among the operating and capital funds
based on need Primarily due to the debt service for the Police take-home vehicle program, General Fund
required a greater allocation in 2014.
Property Tax — This source grew by about 2% year over year, which represents a 1% increase in the base
levy, and new construction of about 1%. The property tax levy is usually slightly higher than originally
budgeted (we don't know the final levy until after the budget is adopted each year) Also, we discount
our budget estimates for uncollected amounts For this year, we built in about a 2 5% collection delay,
however, Yakima County experienced an uncollected rate of only 2.0% at year end, as the local economy
continued to improve This revenue is also shared with the Firefighters' Pension Fund, which also
received an allocation of the growth over budget.
Charges for Services — This category was up by 11 1% over the prior year, but was still below budget
primarily due to final changes made in the new street -break ordinance, coupled with position vacancies
and staff re -allocations that affected how Engineering charges out their time to projects. Because
Engineering expenditures are also under -budget, this category still received a "normal" because the net
effect on the bottom line is similar.
FIN Report 2014 4th Qrtr docx 4 of 16
State Shared Revenue - This category would have met budget, except for that we had a correction in the
accounting treatment of the Motor Vehicle Fuel Tax that reduced this year's revenue by about $200,000.
This was a one-time correction, and going forward, the annual revenues should remain comparable,
which is why it maintained its "normal" designation.
Other Intergovernmental - The contract for School Resource Officers (SRO) make up about half of this
category, and this revenue came in as expected. Increases over budget were realized both in
Information Technology services to Selah and Union Gap, and Police emphasis patrol reimbursements.
Overall, this category demonstrated an increase of 1.6% over 2013.
Fines and Forfeitures - With the implementation of the new indigent defense case volume directive, the
City's Prosecutor's Office started a Pre -filing Diversion Program and a Charging Unit, both designed to
reduce filed cases. These programs have been successful in lowering the caseload for indigent purposes,
but this also potentially reduces the revenue generated by tickets. After posting a 6% increase in 2013,
this category experienced a slight decline in 2014.
Other Taxes - This category consists primarily of Business Licenses and Gambling Taxes, bolstered by
the recovering economy.
Transfers from Other Funds - The majority of this category consists of the three and one-half percent of
the utility tax on Water, Wastewater, and Refuse which is designated by Council for Parks and
Recreation operations. These taxes are all receipted into the General Fund, and the transfer is then made
from General Fund to Parks and Recreation. This one line approximated the 2014 budget. Other minor
transfers included in the budget were ultimately not required, so that in total the category was slightly
below budget.
Licenses and Permits -Generally, the construction segment of our local economy is recovering from the
recession. The budget was conservatively estimated so 2014 actual exceeded budget by about $96,000 or
12.5%. This category is a good indicator of future construction -related sales tax.
Other Revenue - Interest earnings is the primary component, and rates remained low throughout 2014.
This is one area that has not yet recovered from the recession. However, we did sell some investments
and realized gains on the sale that put this category over budget in 2014.
Overall, total General Government revenue demonstrated growth of $3,863,000 or 6.1% over 2013 actual.
New revenues to the General Fund (i.e. the Cable TV utility tax redirected from debt service; the
firefighter hiring grant; and charges for electronic services redirected from the Public Safety
Communication Fund) account for over $800,000 of this increase. If these are removed from the
calculation, the increase in existing revenue was about 4.8%. 2014 revenues were virtually equal to the
amended budget, although there were fluctuations in individual revenue categories.
FIN Report 2014 4th Qrtr.docx 5 of 16
GENERAL GOVERNMENT REVENUES - By Month
$10,000,000
$7,500,000
$5,000,000
$2500,000
$a
2012 2013 2014
Jan $3,668,912 $4,451,264 $4,775,515
Feb 4,206,186 4,267,636 4,772,695
Mar 4,861,758 4,896,583 4,982,907
Apr 9,388,842 9,758,283 10,717,557
May 4,833,268 4,733,408 4,571,958
Jun 4,146,240 4,168,515 4,307,023
Jul 4,636,431 3,962,439 4,307,640
Aug 3,574,114 3,798,660 4,288,142
Sep 4,250,150 4,758,660 5,181,980
Oct 9,673,506 10,070,031 9,891,373
Nov 4,263,220 4,006,410 4,395,161
Dec 4,016,944 4,641,432 5,184,473
$61,519,571 $63,513,321 $67,376,424
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
GENERAL GOVERNMENT REVENUES - Cumulative By Month
$60,000,000
$40,000,000
$20,000,000
$a
2012 2013 2014
Jan $3,668,912 $4,451,264 $4,775,515
Feb 7,875,098 8,718,900 9,548,210
Mar 12,736,856 13,615,483 14,531,117
Apr 22,125,698 23,373,766 25,248,674
May 26,958,966 28,107,174 29,820,632
Jun 31,105,206 32,275,689 34,127,655
Jul 35,741,637 36,238,128 38,435,295
Aug 39,315,751 40,036,788 42,723,437
Sep 43,565,901 44,795,448 47,905,417
Oct 53,239,407 54,865,479 57,796,790
Nov 57,502,627 58,871,889 62,191,951
Dec 61,519,571 63,513,321 67,376,424
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
FIN Report 2014 4th Qrtr docx 6 of 16
GENERAL GOVERNMENT EXPENDITURE ANALYSIS
GENERAL GOVERNMENT EXPENDITURES
2014
-------- Expenditures through 12/31 -------- Amended Percent
2012 2013 2014 Budget Spent
Pohce $24,470,231 $25,923,174 $26,240,592 $26,427,186 99 3%
Fire 9,419,820 9,709,330 10,383,878 10,387,649 100 0%
Transfers To Other Funds 3,485,667 3,019,305 4,979,508 4,942,275 100 8%
Information Technology 2,216,953 2,298,015 2,876,103 3,047,612 94 4%
Code Administration 1,164,991 1,381,740 2,621,485 2,639,371 99 3%
Financial Services 1,437,305 1,461,274 1,502,372 1,488,836 100 9%
Utility Services 1,281,779 1,313,058 1,307,767 1,316,180 99 4%
Legal 1,087,024 1,247,205 1,368,033 1,359,323 100 6%
Municipal Court 1,173,262 1,330,831 1,288,302 1,344,118 95 8%
Pohce Pension 1,264,681 1,344,773 1,193,161 1,343,325 88 8%
Engineering 659,375 654,156 798,763 1,109,632 72 0%
Indigent Defense 487,601 541,656 604,480 650,500 92 9%
Records - City Clerk 520,503 437,577 581,099 583,921 99 5%
Purchasing 503,721 549,153 559,928 549,369 101 9%
Human Resources 437,905 442,846 527,703 513,151 102 8%
Economic Development 42,485 503,185 456,317 511,733 89 2%
Planning 572,797 517,298 452,903 497,481 91 0%
City Hall Maintenance 320,121 360,378 399,719 422,885 94 5%
City Manager 357,542 366,983 386,675 372,684 103 8%
GFI / Emergency Prep 0 0 313,014 333,105 94 0%
City Council 236,321 286,511 293,237 290,199 101 0%
Intergovernmental 241,669 260,749 251,047 244,031 102 9%
State Examiner 105,946 103,729 109,905 110,000 99 9%
Position Vacancy Savings 0 0 0 (950,000) 0 0%
Total General Fund 51,487,699 54,052,926 59,495,991 59,534,566 99 9%
Parks & Recreation Fund 4,046,898 4,261,347 4,553,121 4,556,548 99 9%
Street & Traffic Ops 5,237,585 5,225,208 4,800,608 4,821,409 99 6%
Total General Government $60,772,182 $63,539,481 $68,849,720 $68,912,523 99 9%
Total General Government Fund Expenditures - 0.1% below budget
Status
NORMAL
NORMAL
NORMAL
NORMAL
NORMAL
NORMAL
NORMAL
NORMAL
NORMAL
NORMAL
NORMAL
NORMAL
NORMAL
NORMAL
NORMAL
NORMAL
NORMAL
NORMAL
NORMAL
NORMAL
NORMAL
NORMAL
NORMAL
NORMAL
NORMAL
NORMAL
NORMAL
NORMAL
Position Vacancy Savings - Shown for fund total purposes only - no "actual" is charged here.
Since General Government is about 68% staffing, events affecting total payroll have a significant impact
on budgets Position vacancies can start being an "overage" because of the cashout of earned accrued
leave balances, but then can produce savings when the position is vacant for any length of time. Most
variances in individual divisions are the result of position vacancies. Since minor variances can cause
high percentage fluctuations in the smaller budgets and actual General Government costs are within the
total budget, designations for all individual divisions are maintained as "normal".
FIN Report 2014 4th Qrtr docx
7 of 16
FUND BALANCES
CHANGE IN FUND BALANCE
01/01/14 12/31/14
Beginning 2014 2014 Ending
Balance Actual Rev. Actual Exp. Balance
General $9,128,882 $58,263,806 $59,495,991 $7,896,697
Parks and Recreation 582,492 4,476,359 4,553,121 505,730
Street & Traffic Operations 1,172,379 4,636,264 4,800,608 1,008,035
General Government Subtotal 10,883,753 67,376,429 68,849,720 9,410,462
Operating/Enterprise Funds 17,412,620 68,298,463 65,051,599 20,659,484
Capital Funds 23,489,484 43,773,039 41,348,119 25,914,404
G.O. Bond Redemption Funds 499,152 3,087,352 3,206,285 380,219
Utility Revenue Bond Redemption Funds 1,760,314 2,146,286 2,144,786 1,761,814
Employee Benefit Reserves 5,885,536 11,794,788 13,154,247 4,526,077
Operating Reserves 1,019,560 3,433,827 3,324,816 1,128,571
Trust and Agency Funds 956,166 569,499 675,046 850,619
Total
$4,000,000
$3,000,000
$2,000,000
$1,000,000
$0
($1,000,000)
($2,000,000)
(13.5%)
s
$61,906,585 $200,479,683 $197,754,618 $64,631,650
FUND BALANCES
Change from Prior Year
(17.2%)
18 6%
General Operating &
Government Enterprise
Funds
10 3%
Capital
Funds
e
(5.2%)
Reserve, Bond
Trust & Redemption
Agency Funds
Funds
FIN Report 2014 4th Qrtr.docx 8 of 16
FUND BALANCE ANALYSIS
The 2014 actual results of expenditures and revenues netted an overall increase in total City fund
balances of $2,725,065.
General Government used about $1,473,000 of its beginning fund balance, primarily for temporary
investments that will be recouped in the future or one-time uses. The City purchased 4 Tiger Mart
properties that have set vacant for many years, because of potential environmental contamination tied to
underground fuel tanks. The City worked with the Washington State Department of Ecology to create a
plan to clean-up these properties, and to make this work, the City needed to be the owner. These
properties were purchased for about $1.1 million by General Fund, but the cost of clean-up and the
related grants will be accounted for in the Environmental Fund. As the properties are cleaned and sold,
the proceeds will return to General Fund. Because of higher claims in both the Medical and Risk
Management funds, the operating funds were required to make additional payments to both of these
funds—with General Government adding about $300,000. Overall, General Government funds ended
2014 with a balance of $9,410,462 or about 14.0% of the 2014 revenue budget. This is slightly below the
60 day or 16.7% target, and if the property purchase is subtracted, then the calculation is 15.6%.
Operating and Enterprise funds added $3,246,864 to ending fund balances. About $2.1 million was in
Wastewater Operating fund, which brings the ending balance slightly above the recommended
minimum level. The Airport Operating fund made some critical investments in deferred maintenance,
and ended the year with only $12,170 or 1% of the total operating budget, and is continuing that
investment in 2015. The City has committed to an interfund loan if cash balances warrant that. The
Refuse Fund ended virtually the same as it began, with $370,465 or 6.3% of budget. Since rate
adjustments were deferred, this fund may also require an interfund loan as it goes forward. All other
funds in this category ended the year as expected.
Capital Funds added a net of $2.4 million of beginning reserves, with the Yakima Redevelopment Area
Fund adding about $1.4 million, as we prepare to build a round -about at Fair Avenue and Lincoln in
2015. Wastewater added about $1.2 million to its capital reserves, as they are in the middle of a series of
major capital improvement projects. The pavement rehabilitation project came in on budget, so the
contingency of $931,000 is available for some additional paving in the new Street Construction Fund. All
other major capital funds ended the year as expected.
As discussed earlier, the Employee Benefit funds had a difficult year, so that even though there were
additional contributions to the Employees' Health Benefit Reserve Fund, that balance was still reduced
by $1,241,700, bringing the ending balance to $2,057,955 which is still slightly below the State Risk
Manager's minimum guidelines. The rates were only increased by 4% for 2015, because of the
implementation of a hospital audit program. The Risk Management fund added $109,011 of reserve
balance, with the ending balance being $1,020,003, although the current outstanding litigation issues may
need more than this amount. Rates were increased by 10% in 2015 to address the needs of this fund.
This balance will be monitored for adequacy throughout the year.
In the Bond Redemption funds one fund used for defeasing the voted Fire Capital issue had $186,675 as
a beginning balance. The final payment was made in 2014, so that balance was zeroed out. Revenue
bond redemption fund balances were virtually unchanged. At the end of 2014 all Revenue Bonds are in
compliance with required bond covenants.
FIN Report 2014 4th Qrtr.docx 9 of 16
OTHER FUNDS ANALYSIS
Operating/Enterprise Funds
Capital Funds
Reserve, Trust & Agency Funds
Bond Redemption Funds
Total Revenue
Beginn ng Fund Balance
Total Resources
Operating/Enterprise Funds
Capital Funds
Reserve, Trust & Agency Funds
Bond Redemption Funds
Total Expenditures
OTHER FUNDS REVENUES
2014
-------- Revenues through 12/31 -------- Amended Percent
2012 2013 2014 Budget Rec'd
$66,650,578 $65,588,762 $68,298,463 $66,199,204 103 2%
19,749,313 45,304,346 43,773,039 58,070,847 75 4%
17,840,655 18,745,200 15,798,114 15,788,209 100 1%
6,310,121 5,653,528 5,233,638 6,955,727 75 2%
110,550,667 135,291,836 133,103,254 147,013,987 90 5%
45,711,333 48,629,514 51,022,832 51,022,832
$156,262,000 $183,921,350 $184,126,086 $198,036,819 93 0%
OTHER FUNDS EXPENDITURES
2014
Expenditures through 12/31 Amended Percent
Budget Rec'd
$63,862,252 $64,474,200 $65,051,599 $69,713,439 93 3%
20,285,619 44,099,580 41,348,119 71,712,176 57 7%
16,627,243 16,951,108 17,154,109 17,612,770 97 4%
6,948,234 5,795,450 5,351,071 7,113,635 75 2%
$107,723,348 $131,320,338 $128,904,898 $166,152,020 77 6%
2012 2013 2014
Status
NORMAL
NORMAL
NORMAL
NORMAL
NORMAL
NORMAL
Status
NORMAL
NORMAL
NORMAL
NORMAL
NORMAL
Year end results generally performed as expected Variances in capital funds are related to timing,
which is why they are getting a Normal status. The Bond Redemption Funds are under budget in both
revenue and expenditures by about $1 7 million, because debt service on the new street rehabilitation
was budgeted. Since the timing of the debt issue moved the first debt service payment into 2015, the
amount dedicated to the street program was transferred directly to the capital fund, instead of the debt
service fund Because actual revenues were close to expenditures in all major categories, they all
maintained a "normal" designation.
Departments Under Budget by more than 5%
• The Neighborhood Development amended budget includes both the "new" HUD grant
and the obligated carryover from prior year. The unspent funding at the end of 2014 is
included in the encumbrance ordinance, which will add about $1 9 million to their 2015
budget.
• In the remaining Operating/Enterprise funds, most budgets over $1 million were within
5% of total budget. The Public Safety Communications Fund was under spent by
FIN Report 2014 4th Qrtr docx 10 of 16
$364,000 or 11.5% because of position vacancies coupled with the timing of budgeted
expenditures for the new communications center. The Equipment Rental Fund is under
budget, because of a change in the new Financial Management System (FMS) which
allocated some external costs directly to the operating funds. The Public Works
Administration Fund was under spent by $122,000 or 10.9% because of the combination
of salary savings related to position vacancies, operational efficiencies in the facility's
utilities, and timing of significant maintenance projects.
• Capital Fund budgets include the full project, and are not expected to be 100%
completed in the current year. In total, these funds are below budget by about $30.3
million. Of the top 10 capital projects budgeted in 2014, 5 were substantially completed,
and 5 were in various stages of completion, and were either rebudgeted or will require a
non -lapsing appropriation to carry forward the project budget into 2015. Wastewater
has several projects which were underspent by $11.6 million, including Biosolids
improvement of $4.7 million, and piping in the Speedway/Race Street of $2.0 million.
About $10.1 million of the total variance comes from the timing of Airport capital
improvements. A listing of the top ten budgeted projects and their year end expenses
follow.
• Reserve Funds consist primarily of Employee Benefit Funds and the Risk Management
Fund. Both the Health Benefit and Worker's Compensation self-insured funds required
administrative budget adjustments because the actual exceeded the original adopted
budget. The Health Benefit Fund spent about $400,000 more than the original budget.
Risk Management continues to have challenges --the 2015 budget includes a 10% increase
in contributions from the operating funds.
• Bond Redemption Funds ended the year as expected. The positive variance is tied to a
timing difference because debt service on the new street rehabilitation bonds was not
needed in 2014. The $1.7 million from General Fund was used for project costs, instead.
Funds Over Budget
No funds exceeded budget in 2015.
FIN Report 2014 4th Qrtr.docx 11 of 16
TOP 10 BUDGETED CAPITAL PROJECTS
Project Number/Description
2379 Streets Capital Preservation
2376 Airport -Alpha Taxiway
Construction
1818 Railroad Grade Separation
Martin Luther King Blvd
Total 2014 Actual 2014
Dept Budget Expended Funding Source
ST $17,585,000 $16,542,588 General Obligation Bond
AP 11,162,885 1,072,241 FAA Grant
Passenger Facility Charges
ST 6,298,000 5,610,909 State & Federal Grants
Public Works Trust Fund Loan
2308 Wastewater Facility Improvement WW
2259 Water Treatment Plant Lagoons
2365 Beech St Interceptor Phase III
2267 WW NPDES/TMDL Dschrg/Load
Riparian outflow modification
2335 Modifications to Water Treatment
Plant Intake
Transit Bus Replacement
2340 N 1st St Revitalization Phase I
Dept. Legend:
AP - Airport
ST - Street Improvement
TR - Transit
WW - Wastewater Capital
W - Water Capital
4,700,000 795,930 Debt Proceeds, Contributions
Charges for Services
W 3,063,938 3,094,643 Drinking Water State
Revolving Fund Loan
0 Charges for Services
1,317,104 Wastewater Capital Reserves
309,270 Charges for Services
TR 1,300,000 1,288,334 Transit Sales Tax
ST 1,200,000 237,144 Grant
WW 2,000,000
WW 1,800,000
W 1,500,000
Expected
Completion
Done
FY 2015
FY 2014
FY 2014/15
FY 2014
FY 2014/15
FY 2014/15
FY 2014
FY 2014
FY2015/16
FIN Report 2014 4th Qrtr.docx 12 of 16
EXHIBITS
Fund
Exhibit I
OTHER OPERATING/ENTERPRISE FUNDS
Actual Revenue Appropriations Ending
Beg Bal Amended Actual % Amended Actual % Balance
01/01/14 Budget Revenue Rec'd Budget Exp Exp'd 12/31/14
Economic Development $239,488 $258,000 $276,635 107.2% $456,622 $430,690 94.3% $85,433
Neighborhood Development 522,381 3,117,321 1,756,848 56.4% 3,120,096 1,449,200 46.4% 830,029
Community Relations 550,233 551,600 650,470 117.9% 601,850 597,230 99.2% 603,473
Cemetery 54,260 264,950 257,559 97.2% 278,900 255,443 91.6% 56,376
Emergency Services 156,188 1,337,026 1,343,409 100.5% 1,339,282 1,291,290 96.4% 208,307
Public Safety Communication 677,659 3,019,937 3,049,025 101.0% 3,219,521 2,855,158 88.7% 871,526
Police Grants 256,642 484,000 287,570 59.4% 469,024 369,476 78.8% 174,736
P.B.I.A. (Parking & Bus Impr) 37,680 235,170 204,560 87.0% 244,358 229,831 94.1% 12,409
Trolley 7,150 163,967 125,455 76.5% 166,850 34,721 20.8% 97,884
Front Street Bus Impr Area 5,675 3,335 5,640 169.1% 9,000 5,216 58.0% 6,099
Cony Center (Tourist Promo) 479,522 1,548,250 1,493,802 96.5% 1,483,667 1,432,809 96.6% 540,515
Capitol Theatre 57,158 297,250 312,080 105.0% 342,020 341,978 100.0% 27,260
PFD- Convention Center 261,465 755,750 796,752 105.4% 645,000 636,991 98.8% 421,226
Tourism Promotion Area 73,324 687,000 647,725 94.3% 687,000 641,422 93.4% 79,627
PFD- Capitol Theatre 104,222 575,500 603,140 104.8% 531,000 530,939 100.0% 176,423
Airport Operating 50,113 993,625 1,034,947 104.2% 1,130,293 1,072,890 94.9% 12,170
Stormw ater Operating Fund 1,463,183 2,165,000 2,156,269 99.6% 2,325,519 2,319,147 99.7% 1,300,305
Transit 606,448 7,660,917 8,125,964 106.1% 8,240,033 7,783,137 94.5% 949,275
Refuse 370,325 5,773,500 5,860,382 101.5% 5,864,823 5,860,242 99.9% 370,465
Wastewater Operating 2,012,348 19,958,357 22,454,620 112.5% 20,363,432 20,334,777 99.9% 4,132,191
Water Operating 3,066,048 7,997,500 9,335,200 116.7% 9,022,649 9,020,711 100.0% 3,380,537
Irrigation 939,053 1,766,100 1,897,459 107.4% 2,063,884 1,985,333 96.2% 851,179
Equipment Rental 4,383,063 5,319,711 4,326,042 81.3% 5,671,800 4,373,947 77.1% 4,335,158
Environmental 524,232 150,000 180,722 120.5% 192,950 77,807 40.3% 627,147
Public Works Admin. 514,760 1,115,438 1,116,188 100.1% 1,243,866 1,121,214 90.1% 509,734
Total Other Operating Funds $17,412,620 $66,199,204 $68,298,463 103.2% $69,713,439 $65,051,599 93.3% $20,659,484
FIN Report 2014 4th Qrtr.docx 13 of 16
Fund
Exhibit II
CAPITAL IMPROVEMENT FUNDS
Actual Revenue Appropriations Ending
Beg Bal Amended Actual % Amended Actual % Balance
01/01/14 Budget Revenue Rec'd Budget Exp Exp'd 12/31/14
Arterial Street $2,181,881 $3,823,975 $2,140,182 56.0% $5,106,566 $2,954,742 57.9% $1,367,321
Central Bus District Capital 163,264 62,400 72,745 n/a 131,000 120,826 92.2% 115,183
Capitol Theatre Construction 72,546 71,927 71,927 n/a 140,000 0 n/a 144,473
Yakima Redevelopment Area 1,228,687 3,350,000 2,668,971 79.7% 2,473,235 1,228,911 49.7% 2,668,747
Parks and Recreation Capital 239,590 0 85,000 n/a 100,000 82,237 82.2% 242,353
Fire Capital 1,116,489 134,500 157,444 117.1% 882,808 176,082 19.9% 1,097,851
Law and Justice Capital 942,748 382,886 557,428 145.6% 884,796 926,970 104.8% 573,206
Public Works Trust Constr 525,217 676,306 739,165 109.3% 732,773 536,868 73.3% 727,514
REET 2 Capital 585,060 592,000 739,165 124.9% 772,787 772,787 100.0% 551,438
Street Capital 0 17,585,000 17,585,035 100.0% 17,585,000 16,653,978 94.7% 931,057
Convention Center Cap Impr 631,396 260,500 293,292 112.6% 402,311 288,012 71.6% 636,676
Reserve for Capital Impr 2,838,419 4,004,489 5,544,388 138.5% 6,548,000 5,979,376 91.3% 2,403,431
Airport Capital 625,020 10,666,597 1,076,609 10.1% 11,162,885 1,072,241 9.6% 629,388
Stormwater Capital Fund 1,360,734 444,000 657,708 148.1% 790,000 87,619 11.1% 1,930,823
Transit Capital Reserve 2,455,220 1,508,507 1,726,913 114.5% 1,996,000 1,874,766 93.9% 2,307,367
Wastewater Capital 3,653,495 10,501,900 4,430,183 42.2% 14,857,492 3,238,665 21.8% 4,845,013
Domestic Water Improvement 4,365,386 2,264,800 3,475,929 153.5% 5,525,019 4,169,101 75.5% 3,672,214
Irrigation System Impr 504,332 1,741,060 1,750,955 100.6% 1,621,504 1,184,938 73.1% 1,070,349
Total Capital Impr Funds $23,489,484 $58,070,847 $43,773,039 75.4% $71,712,176 $41,348,119 57.7% $25,914,404
FIN Report 2014 4th Qrtr.docx 14 of 16
Fund
Exhibit III
RESERVE AND OTHER FUNDS
Actual Revenue - Appropriations Ending
Beg Bal Amended Actual % Amended Actual % Balance
01/01/14 Budget Revenue Rec'd Budget Exp Exp'd 12/31/14
Employee Benefit Reserves
Unemployment Comp Res $394,723 $177,000 $195,649 110.5% $286,582 $155,140 54.1% $435,232
Employees Health Ben Res 3,299,663 9,158,200 9,023,251 98.5% 10,267,703 10,264,959 100.0% 2,057,955
Worker's Compensation Res 1,070,111 1,033,000 1,150,811 111.4% 1,348,630 1,345,292 99.8% 875,630
Wellness/EAP 179,929 175,000 150,000 85.7% 176,300 147,213 83.5% 182,716
Firemens' Relief and Pension 941,110 1,259,338 1,275,077 101.2% 1,259,308 1,241,643 98.6% 974,544
Total Employee Ben Reserve $5,885,536 $11,802,538 $11,794,788 99.9% $13,338,523 $13,154,247 98.6% $4,526,077
Operating Reserves
Capitol Theatre Reserve 180,495 500 0 0.0% 71,927 71,927 100.0% 108,568
Risk Management Reserve 839,065 3,360,000 3,433,827 102.2% 3,579,649 3,252,889 90.9% 1,020,003
Total Operating Reserve $1,019,560 $3,360,500 $3,433,827 102.2% $3,651,576 $3,324,816 91.1% $1,128,571
Trust and Agency Funds
Cemetery Trust $622,896 $14,500 $21,126 145.7% $12,000 $12,000 100.0% $632,022
Agency Fund-YAKCORPS 333,270 610,671 548,373 89.8% 610,671 663,046 108.6% 218,597
Total Other Funds $956,166 $625,171 $569,499 91.1% $622,671 $675,046 108.4% $850,619
FIN Report 2014 4th Qrtr.docx 15 of 16
Fund
Exhibit IV
BOND REDEMPTIONS FUNDS
Actual Revenue Appropriations Ending
Beg Bal Amended Actual % Amended Actual % Balance
01/01/14 Budget Revenue Rec'd Budget Exp Exp'd 12/31/14
GO Bond Redemption
LID Guaranty $25,214 $50 $50 100.0% $0 $0 n/a $25,264
2002 GO Convention Center 159,444 1,016,422 1,018,001 100.2% 1,015,650 1,015,650 100.0% 161,795
2005 GO Various Bonds 9,026 2,986,989 1,364,219 45.7% 2,987,284 1,364,512 45.7% 8,733
1995 GO Street, Parks & Fire 186,675 107,230 108,300 101.0% 294,975 294,975 100.0% 0
1996 GO LTD - Cony Center 65,655 428,750 428,250 99.9% 425,940 425,940 100.0% 67,965
LID Debt Service Control 53,138 270,000 168,532 62.4% 245,000 105,208 42.9% 116,462
Total G.O. Bond Redemption $499,152 $4,809,441 $3,087,352 64.2% $4,968,849 $3,206,285 64.5% $380,219
Water/Sewer Revenue Bond Redemption
1997 Water Rev Bond Res $271,407 $400 $400 100.0% $0 $0 n/a $271,807
1996 Revenue Bond Reserve 148,463 700 700 100.0% 0 0 n/a 149,163
Water/Sewer Revenue Bonds 114,528 0 0 n/a 0 0 n/a 114,528
1997 Water Revenue Bonds 6,941 240,525 240,525 100.0% 240,500 240,500 100.0% 6,966
2008 Water/Sewer Rev Bond 2 415,813 415,813 100.0% 415,813 415,813 100.0% 2
Water/Sewer Rev Bond Res 973,700 1,000 1,000 100.0% 0 0 n/a 974,700
2003 Irrigation Bond Red 35,437 321,504 321,504 100.0% 322,129 322,129 100.0% 34,812
2003 Wastewater Bond Red 965 1,166,344 1,166,344 100.0% 1,166,344 1,166,344 100.0% 965
2003 Sewer Rev Bond Res 208,871 0 0 n/a 0 0 n/a 208,871
Total W/S Rev Bond Red $1,760,314 $2,146,286 $2,146,286 100.0% $2,144,786 $2,144,786 100.0% $1,761,814
FIN Report 2014 4th Qrtr.docx 16 of 16