HomeMy WebLinkAbout05/05/2009 09 2008 Year-End Budget Revenue & Expenditure Report BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
411 AGENDA STATEMENT
Item No.
q
For Meeting Of : Mav 5, 2009
ITEM TITLE: .2008 Year -End Budget Revenue & Expenditure Report
SUBMITTED BY: Dick Zais, City Manager'
Rita DeBord, Finance Director
Cindy Epperson, Deputy Director of Accounting & Budgeting
CONTACT PERSON/TELEPHONE: Dick Zais, 575 -6040
Rita DeBord, 575 -6070
Cindy Epperson, 575 -6070
SUMMARY EXPLANATION:
As previously projected, actual 2008 budget performance has produced a stable revenue position
and overall departmental expenditures have again been restrained below authorized budget
levels. As a result of these factors, the Citv's final year -end 2008 financial position is sound.
Growth in General Fund revenue primarily from strong construction activity resulted in revenues
of $47.5 million exceeding budget by about $1.2 million (or 2.7 %). In addition, expenditures of
$47 million were contained below budget by $1.5 million (or 3.3 %), as a result of strict cost
control measures implemented by City Management in mid -2008, which produced salary savings
0 from position vacancies and the carry-forward of Information Systems projects. The General
Fund ended 20013 "in the black" and was able to add about $0.5 million to reserves.
Parks and Streets funds (the other tax- supported funds) both experienced expenditures slightly
over current revenues, thereby using reserves for such things as an employee retirement cash -
out and the purchase of additional street maintenance supplies and materials, respectively. The
net result for the 3 General Government funds was an addition to reserves of slightly over
$300,000. Note: Because of the escalation in fuel prices, Council approved a mid -year
appropriation to cover the additional fuel costs out of reserves, but in actuality, the increased
costs were paid from other expenditure savings and gains in revenue.
Continued...
Resolution Ordinance Contract Other (Specify) 2008 Year -End Report
Funding Source:_ NA
APPROVED FOR SUBMITTAL: �`---- 4
City Manager
STAFF RECOMMENDATION: Accept Report
BOARD /COMMISSION /COMMITTE RECOMMENDATION: A preliminary version of the 2008
Year End Report was presented to the Budget Council Committee at their February 26, 2009
ID meeting.
COUNCIL ACTION:
2008 Year -End Budget Revenue and Expenditure Report Agenda Statement- Continued
Even though a national recession was identified as beginning in December, 2007, Yakima's
general economy started softening in mid -2008, although not as severely as some governments
in the state and nation. Future revenue growth is not expected to increase at the same pace as
the recent past. In the absence of sustained growth in City revenues, management has
developed and is implementing additional reductions in other City expenditures and services for
the 2009 General Government budget, and into the future, to maintain a balanced budget and
acceptable reserves. The Council Budget Committee is continuing to review the.sustainability
and prioritization of City services, following Yakima County's budget model.
Total 2008 actual expenditure for all funds was $155.4 million compared to the 2008 amended
budget of $192.4 million -- $37 million or approximately 19.2% Tess 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 2009.
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 tight controls on
expenditures. Overall, the 2008 year -end fiscal position of the City of Yakima reflects stable and
responsible budget performance.
•
•
•
MEMORANDUM
April 30, 2009
TO: The Honorable Mayor and
Members of the City Council
FROM: Dick Zais, City Manager
Rita DeBord, Finance Director
Cindy Epperson, Deputy Director of Acct & Budget_
SUBJECT: 2008 Year -End Budget Revenue and Expenditure Report
•
In accordance with past practice, we are submitting for your review, the City of Yakima's
2008 year -end actual compared to budgeted Revenue and Expenditure Report for both
Operating and Capital Budgets. Balances shown are subject to final adjustments made as a
result of the year -end closing process. We do not, at this time, expect that any adjustments
will materially affect the balances represented in this report.
Year -end information is reported by fund, in the following order:
• City -Wide Overview
• General Government Budget Results
• Other Operating / Enterprise Funds
• Capital Funds
• Reserve Funds
• Operating Reserves
• Bond. Redemption Funds
• Conclusion
111/
Cje Year-End Report 2008 Final 1 of 24
•
• .
This page was intentionally left blank.
Cje Year -End Report 2008 Final 2 of 24
• CITY-WIDE OVERVIEW
As previously projected, actual 2008 budget performance has produced a stable revenue position
and overall departmental expenditures have again been restrained below authorized budget
levels. As a result of these factors, the City's final year -end 2008 financial position is sound. Even
though a national recession was identified as beginning in December, 2007, Yakima's general
economy was still growing through September, 2008. This is because of strong construction
activity bolstering revenues in the areas of sales tax, permit fees and Engineering charges for
services through the first part of the year. Starting in October, sales tax and permit fees
experienced declines, but the General Fund was still able to add about $0.5 million to reserves.
However, the reductions in revenue that are continuing into 2009 have caused management to
implement reductions in other City expenditures of about $1.1 million from the adopted 2009
budget, in order to maintain a balanced budget and acceptable reserves. The Council Budget
Committee is continuing to review the sustainability and prioritization of City services.
As illustrated in Chart I, General Government 2008 budget expenditures were $57,007,660
compared to the amended budget of $59,106,969 -- $2,099,309 or 3.6% less than budget
authorizations. The largest contributor to this variance in General Fund is the Police Department,
which had salary savings from position vacancies throughout the year. The Streets budget also
0 experienced salary savings from vacancies. Information Systems had several projects in process,
but not completed that helped create this variance in this calendar year, but will be carried
forward into the 2009 budget.
The General Government expenditure savings for 2008 were significantly higher than prior years,
due to the additional cost control /reduction measures implemented in the budget last year by City
Management. (For comparison, 2007 had savings of about $1.7 million or 3.2% of budget, while
2006 had savings of about $1.1 million or 2.0% of budget.)
Total 2008 actual expenditure for all funds was $155,397,193 compared to the 2008 amended
budget of $192,341,868 -- $36,944,675 or approximately 19.2% 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 2009.
III
Cje Year-End Report 2008 Final 3 of 24
Chart I ip
CTTY OF YAKIMA
2008 EXPENDTTURE COMPARISON
(Budget vs. Actual — December Year -to -Date)
2008
Amended 2008 --- ---- -- Variance -- ---- --
Funds Budget Actual Amount (1) Percent
General $48,472,230 $46,916,043 $1,556,187 3.2%
Parks and Recreation 4,420,906 4,274,492 146,414 3.3%
Street & Traffic Operations 6,213,833 5,817,125 396,708 6.4%
General Gov't Subtotal $59,106,969 $57,007,660 $2,099,309 3.6%
Community Development $4,679,359 $2,555,694 $2,123,665 45.4%
Utilities /Other Operating 56,214,357 54,084,388 2,129,969 3.8%
Capital Improvement 49,122,820 20,241,879 28,880,941 58.8%
G.O. Bonds /Notes 2,774,115 2,670,581 103,534 3.7%
Water /Sewer Revenue Bonds 3,960,585 3,710,550 250,035 6.3% 40
Employee Benefit Reserves 13,110,068 12,617,187 ` 492,881 3.8%
Operating Reserves 3,346,595 2,490,128 856,467 25.6%
Trust and Agency Funds 27,000 19,126 7,874 29.2%
Total $192,341,868 $155,397,193 $36,944,675 19.2%
(1) Encumbrances: General Government encumbrances (which are not shown here) are $447,265 which
reduces that variance to $1,652,044 or a 2.8% variance from budget. Total encumbrances for all funds are
$3,051,989, which reduces the total variance to $33,892,686 or a 17.6% variance from budget. Most of this
variance is the result of the timing of capital projects. If the capital projects are removed from the
calculation, the remaining operating budgets were underspent by about 4 %.
III
Cje Year -End Report 2008 Final 4 of 24
e l GENERAL GOVERNMENT BUDGET RESULTS
Chart II
CITY OF YAKIMA
2008 GENERAL GOVERNMENT PERFORMANCE
(Budget vs. Actual)
General Parks & Rec Street
Fund (1) Fund Fund Total
Beginning Balance
Amended Budget $6,250,708 $549,439 $1,386,069 $8,186,216
Actual Beginning Balance 6,250,708 549,439 1,386,069 8,186,216
(Gain) Loss $0 $0 $0 $0
Revenue
Amended Budget $46,179,474 $4,191,435 $5,726,012 $56,096,921
Actual 47,428,205 4,176,409 5,716,444 57,321,058
• Gain (Loss) $1,248,731 ($15,026) ($9,568) $1,224,137
Expenditures
Amended Budget $48,472,230 $4,420,906 $6,213,833 $59,106,969
Actual 46,916,043 4,274,493 5,817,125 57,007,660
Difference $1,556,187 $146,413 $396,708 $2,099,309
Ending Balance
Budgeted $3,957,952 $319,968 $898,248 $5,176,168
Actual 6,762,870 451,355 1,285,388 8,499,614
Less: Encumbrances 399,898 0 47,367 447,265
Net Balance $6,362,972 $451,355 $1,238,021 $8,052,349
(1) Actual General Fund expenses, including encumbrances, were $112,264 less than actual General Fund
revenues.
The total General Government 2008 year -end balance, net of encumbrances, equals $8,052,349,
13.5% of the amended budget and $133,867 less than the beginning balance. The cash reserve
position at the end of 2008 was $8,499,614, which is $313,398 more than the beginning balance.
Chart III illustrates the General Government Amended 2008 budgets in comparison to actual
• results for major revenue categories and total expenditures. Immediately following this table is a
narrative review of the actual performance of our major resource categories.
Cje Year-End Report 2008 Final 5 of 24
Chart III 0
CITY OF YAKIMA
2008 GENERAL GOVERNMENT REVENUE
(Budget vs. Actual - December Year -to -Date)
2008
Amended Actual Variance
GENERAL FUND Budget To -Date Amount Percent
Revenue
Property Tax $7,327,800 $7,437,787 $109,987 1.5%
Criminal Justice Sales Tax .3% 1,624,000 1,676,175 52,175 3.2%
Criminal Justice Sales Tax .1% 909,000 929,067 20,067 1.9%
Retail Sales & Use Tax 13,675;000 13,719,058 44,058 0.3%
Franchise Fees 43,000 40,245 (2,755) (6.4 %)
Utility Tax 10,835,792 11,059,750 223,958 2.1%
Business License Tax 500,000 533,091 33,091 6.6%
Gambling Tax 951,000 913,885 (37,115) (3.9 %)
Dangerous Bldg Tax Assess. 10,000 39,064 29,064 290.6%
Leasehold Excise Tax 200 3,992 3,792 1896.0%
Police Federal Grants 265,000 152,677 (112,323) (42.4 %)
IIII
Fire Federal Grants 70,000 72,000 2,000 2.9%
Criminal Justice Funds 424,150 568,110 143,960 33.9%
Liquor Excise Tax 393,000 403,020 10,020 2.5%
Liquor Profits 605,000 565,917 (39,083) (6.5 %)
School Resource Officers 352,800 352,828 28 0.0%
Other Intergovernmental 485,855 527,010 41,155 8.5%
Licenses and Permits 871,500 993,122 121,622 14.0%
Charges for Service 4,471,293 4,808,037 336,744 7.5%
Fines and Forfeitures 1,378,700 1,582,815 204,115 14.8%
Misc. Revenue 945,384 1,010,088 64,704 6.8%
Non - Revenue 1,000 467 (533) (53.3 %)
Transfers From Other Funds 40,000 40,000 0 0.0%
Capital Lease Financing 0 0 0
Total Revenue $46,179,474 $47,428,205 $1,248,731 2.7%
Plus: Beginning Fund Balance 6,250,708 6,250,708 0 0.0%
Total Resources $52,430,182 $53,678,913 $1,248,731 2.4%
Less: Expenditures 48,472,230 46,916,043 1,556,187 3.2%
Ending Fund Balance $3,957,952 $6,762,870 $2,804,918 70.8%
•
Less: Encumbrances 0 399,898 399,898
Net Fund Balance $3,957,952 $6,362,972 $2,405,020
Cje Year -End Report 2008 Final 6 of 24
0 Chart III (Continued...)
2008
Amended Actual Variance
Budget To -Date Amount Percent
Parks and Recreation Fund
Property Tax $1,800,000 $1,800,000 $0 0.0%
Intergovernmental 174,700 153,252 (21,448) (12.3 %)
Charges for Services 913,465 886,086 (27,379) (3.0 %)
Misc. Revenue /Non- Revenue 258,270 290,712 32,442 12.6%
Transfers From Other Funds 1,045,000 1,046,359 1,359 0.1%
Total Revenue $4,191,435 $4,176,409 ($15,026) (0.4 %)
Plus: Beginning Fund Balance 549,439 549,439 0 0.0%
Total Resources $4,740,874 $4,725,848 ($15,026) (0.3 %)
Less: Expenditures 4,420;906 4,274,493 146,413 3.3%
Ending Fund Balance $319,968 $451,355 $131,387 41.1%
Less: Encumbrances 0 0 0 n/a
Net Fund Balance $319,968 $451,355 $131,387 41.1%
ill Street/Traffic Fund 0
Property Tax $4,220,202 $4,220,202 $0 0.0%
County Road Tax . 0 9,260 9,260 n/a
Fuel Tax - Street 1,430,000 1,306,335 (123,665) (8.6 %)
Other Intergovernmental 0 0 0 n/a
Charges for Services 15,760 35,274 19,514 123.8%
Misc. Revenue /Non - Revenue 60,050 145,373 85,323 142.1%
Total Revenue $5,726,012 $5,716,444 ($9,568) (0.2 %).
Plus: Beginning Fund Balance 1,386,069 1,386,069 0 0.0%
Total Resources $7,112,081 $7,102,513 ($9,568) (0.1 %)
Less: Expenditures 6,213,833 5,817,125 396,708 6.4% -
Ending Fund Balance $898,248 $1,285,388 $387,140 43.1%
Less: Encumbrances 0 47,367 47,367 . ,
Net Fund Balance $898,248 $1,238,021 $339,773 37.8%
General Government Summary
Resources $64,283,137 $65,507,274 $1,224,137 1.9%
Expenditures 59,106,969 57,007,661 2,099,308 3.6%
0 Ending Fund Balance 5,176,168 8,499,613 3,323,445 64.1%
Less: Encumbrances 0 447,265 447,265 n/a
Net Fund Balance $5,176,168 $8,052,348 $2,876,180 55.5%
Cje Year End Report 2008 Final 7 of 24
General Government Budget Results (Continued...)
General Government Resources
In total, General Fund.2008 actual revenue exceeded the amended budget by $1,248,731.
Significant individual categories demonstrating increases over the amended budget included:
Charges for Services -- up $336,744; Utility Taxes - up $223,958; Fines and Forfeitures - up
$204,115; and Criminal Justice Funds - up $143,960. We had anticipated most of these increases
earlier in our year -end projections.
Sales Tax of $13,719,058 ended the year about 2.2% greater than the 2007. actual of $13,423,269, but
just $44,058 or 0.3% greater than the 2008 budget. At the end of the second quarter of 2008, sales
tax was still ahead of prior year by 5.4 %. However, the national economic recession affected the
City in the last half of the year, dropping the actual collections to budgeted levels. In the recent
past, Sales Tax has been shored up by new construction and sales of durable goods, both of which
were precipitated by the low interest rate environment; the recent annexations that are
experiencing infill; and the City's designation as a Federal Renewal Community, which provides
tax benefits for capital investment for job creation. (It appears that the agricultural sector has not
been as negatively affected as many other sectors of the economy.) Both Criminal Justice Sales Tax
distributions experienced similar trends. 2009 is estimated to continue the downward trend,
therefore, the 2009 budget is being modified to take into consideration the economic downturn.
Charges for Services was up over budget by $336,744 or 7.5 %. The majority of this increase was
4 110
the result of reimbursement for the Engineering Division's work on capital projects.
Utility Taxes of $11,059,750 increased by $223,958 or 2.1% over the 2008 amended budget, ending
up 5.4% more than 2007 actual. Cellular utility taxes are recovering from the lower levels
experienced in 2006, as wireless communications continue to expand; however, "land line"
telephone usage is shrinking as wireless methods expand. When these are considered together,
they represent almost half of the increase. The electric utility taxes are ahead of prior year by
17.4 %, because of collections in new annexation areas, weather patterns and a rate increase.
Conversely, natural gas utility taxes are down by 13.7 %, because of a recent rate decrease. In
general, utility taxes exhibit growth from usage fluctuations and /or rate adjustments.
Fines and Forfeitures ended 2008 at $1,582,815 or 14.8% above the 2008 amended budget. Recent
court decisions, which slowed collections in certain categories of fines in prior years, have been
resolved so that court fines are slowly rebounding. Additionally, there has been an increased
volume as the Police Officers authorized by the new criminal justice sales tax and the Safe
Community Action Plan complete their training requirements and are deployed.
Criminal Justice Funds received from the state experienced gains of $143,960 over the amended
budget. The major component of this distribution is tied to the City's crime rate as compared to
other cities. With recent improvements in our crime rate, the 2008 budget was developed with the
assumption that the high -crime distribution would be greatly reduced in the 2 half of the year —
the reduction did not materialize, thereby creating the positive variance.
Cje Year -End Report 2008 Final 8 of 24
General Government Budget Results (Continued...)
Significant revenue decreases below the 2008 budget included:
Police Federal Grants — down $112,323, primarily the result of timing of the Byrne grant
(rebudgeted in 2009). The program expenditures were also forwarded into 2009.
Gambling Tax — down $37,115. One Gambling establishment closed in 2008, and was behind in
its gambling tax payments. Legal has been engaged, and is now actively pursuing collection
follow -up.
The General Fund 2008 year -end balance was originally estimated to be $5,883,829 in the 2009
Adopted Budget. However, the net effect of some unanticipated revenue in excess of budget,
expenditure savings and outstanding unpaid purchase orders increased this balance by $879,041
to a total of $6,762,870. Bear in mind, however, that the 2009 budget has been amended to provide
for $399,898 in year -end encumbrances, (e.g., 2008 expenditures carry -over to 2009).
The General Fund revised balance for year -end 2009 is estimated to be $5,037,335, and is to be
maintained as a cash flow reserve, and as a reserve for unanticipated fiscal impacts, such as the
continuing reductions in revenues because of the ongoing recession. After including
encumbrances, a total of $2,125,433 has been allocated as a resource, if needed, to balance the
0 amended 2009 budget. Note: The 2007 year end report estimated that a total of $1,954,256 was
also allocated to balance the 2008 budget if needed. However, the combination of revenues
exceeding conservative estimates, and expenditure savings from position vacancies and other
positive variances actually resulted in a slight gain to the General Fund balance as discussed
earlier, i.e. the $1,954,256 of beginning reserves was not needed to balance actual results.
When the 2008 General Fund revenues (excluding beginning fund balances) are compared to prior
year, there is an increase of $2,373,559 or 5.3% from $45,054,646 to $47,428,205, even amid a
national recession (See Table I attached.) The annualised impact of the Occidental annexation
effective mid -year 2007 affected the property tax levy, utility taxes and sales tax on construction in
the area.
The expenditure budget saw an increase of $2,682,166 or 6.0% over 2007 actual levels. Several
factors combined to create this increase:
• 2008 bargaining unit settlements included some catch -up provisions, since all bargaining
units agreed to freeze wages in 2007;
> The annualized effect of expenses related to the Occidental Annexation and the Safe
Community Action Plan (SCAP) program;
> New public safety grants;
• Rate adjustments from the Washington State Retirement System; and
A major escalation in fuel costs.
•
Cje Year -End Report 2008 Final 9 of 24
General Government Budget Results (Continued...)
Even with revenues feeling the pressure of the national recession and expenditures responding to
the economic issues listed above, General Fund was again able to add to its beginning balance by
$512,162. However, it took directed budget constraints to accomplish this. Because of the concern
of ongoing sustainability of services, the Council Budget Committee continues to review General
Government operations. As 2009 unfolds, this committee will review the various dynamics that
affect the budget, and report on those findings. Continuing revenue reductions has also
prompted City Management to create a cost containment plan in the spring of 2009. Staff will
continue to monitor revenues and expenditures.
Overall, General Fund Resources, which include the Beginning Fund Balance, were $1,248,731 or
4.3% greater than the 2008 Amended Budget; and were within 0.6% or $325,058 above year -end
estimates presented in the 2009 Budget Wrap -up. General Fund expenditure savings, after
providing for year -end encumbrances and adjustments, amounted to $1,156,289 or 2.4% of the
authorized 2008 budget.
Parks and Recreation actual resources were ($15,026) or 0.4% less than the amended budget for
2008. Areas below budget include Intergovernmental (i.e. grant) and Charges for Services. The
decreases in grant revenue also have a corresponding reduction in expenditures. Expenditures
were below the authorized amended budget for 2008 by $146,414 or 3.4 %. The year -end balance
for the Parks and Recreation Fund of $451,356 is $98,083 less than the beginning balance.
$133,157 of the year -end balance has been conservatively appropriated as a resource to balance the
2009 Budget. Therefore, the Parks Fund revised balance for year -end 2009 is now estimated to be
$318,199.
Street Fund resources were ($9,568) or 0.1% less than the amended budget. Reductions in Gas tax
related to decreased volume of fuel sales state -wide was offset by greater than anticipated
insurance recoveries and charges for street crew work to capital projects. Expenditures were
under budget levels by 6.8% or $396,708, caused primarily by position vacancies. The year -end
balance is decreased by $100,681 to $1,285,388.
After considering encumbrances of $47,367, the Street Fund's revised balance for year -end 2009 is
now estimated to be $975,365.
Chart IV summarizes the actual status of General Government expenditures through year - end
2008, and compares these expenditures to amended budget authorization levels.
Cje Year -End Report 2008 Final 10 of 24
4110 Chart IV
CITY OF YAIKIMA
2008 GENERAL GOVERNMENT EXPENDITURES
(Budget vs. Actual - December Year -to -Date)
2008 .2008 Year -End Unexpended / Percent
Amended Expenditures Encum- Uncommitted Spent
Budget To 12/31/08 brances Balance Committed
Police $21,325,811 $20,902,975 $13,272 $409,564 98.1%
Fire 8,443,241 8,436,383 0 6,858 99.9%
Information Systems 2,844,751 2,541,846 339,418 (36,513) 101.3%
Transfers To Other Funds 2,342,535 2,317,970 0 24,565 99.0%
Code Administration 1,645,403 1,546,638 0 98,765 94.0%
Police Pension 1,412,950 1,279,173 . 16,000 117,777 91.7%
Legal 1,354,666 1,299,647 0 55,019 95.9%
Financial Services 1,453,768 1,440,634 0 13,134 99.1%
Municipal Court 1,289,964 1,202,128 0 87,836 932%
0 Engineering 1,154,964 1,034,701 5,000 115,263 90.0%
Utility Services 1,091,136 1,034,015 0 57,121 94.8%
Planning 737,706 705,338 2,526 29,842 96.0%
Human Resources 465,627 430,133 5,000 30,494 93.5%
City Manager 488,608 483,312 0 5,296 98.9%
Records 490,224 409,921 9,682 70,621 85.6%
City Hall Maintenance 418,299 403,570 4,000 10,729 97.4%
Indigent Defense 385,000 . 360,000 0 25,000 93.5%
Purchasing 271,231 258,089 0 13,142 95.2%
Intergovernmental 288,685 286,102 0 2,583 99.1%
City Council 204,961 204,586 0 375 99.8%
SunDome 150,000 150,000 0 0 100.0%
State Examiner 103,000 96,297 0 6,703 93.5%
Urban Area Hearings Exam. 71,000 65,193 5,000 807 98.9%
Probation Services 25,000 24,176 0 824 96.7%
District Court 13,700 3,216 0 10,484 23.5%
Total General Fund .$48,472,230 $46,916,043 $399,898 $1,156,289 97.6%
Parks & Recreation Fund 4,420,906 4,274,492 0 146,414 96.7%
Street & Traffic Ops. 6,213,833 5,817,125 47,367 349,341 94.4%
Total General Government $59,106,969 $57,007,660 $447,265 $1,652,044 97.2%
III
Cje Year-End Report 2008 Final 11 of 24
General Government Budget Results (Continued...)
Notable deviations from budgetary authorizations after including year -end encumbrances, were
as follows:
Police Department expenditures after encumbrances were below the amended budget by
$409,564 or 1.9 %, due primarily to savings from position vacancies.
Fire Department, the 2nd largest General Government budget, ended the year just slightly less
than the amended budget by $6,858; expending 99.9% of its approximately $8.4 million budget.
Information Systems, when encumbrances for ongoing technology projects are added to actual
expenditures, came in ($36,513) over budget. The encumbrances of $339,418 include primarily the
prosecutorial case management, electronic bill paying, and time management systems all in
varying stages of research and implementation.
Several operating divisions in the General Fund ended 2008 under budget primarily due to salary
savings:
o Code Administration had several vacancies throughout the year, including the Code
Administration and Planning Manager. This position was subsequently reviewed, and a
reorganization policy issue was approved for the 2009 budget.
II)
o Legal Department expenditures were $55,019 or 4.1% less than budget, due primarily to
the resignation of the City Attorney.
O Municipal Court spent $87,836 or 6.8% less than the 2008 budget, because of the vacancy
of the Deputy Court Services Manager (subsequently eliminated for the 2009 budget).
Additionally, there was turnover in the existing staff throughout the year.
o Engineering was $115,263 or 10.0% under budget, attributable primarily to the long -term
vacancy of an engineering position. Additionally, the budget included a cash -out estimate
for an employee who was eligible to retire, but chose to continue employment.
• Utility Services ended 2008 under budget by $57,121 or 5.2 %, because of turnover in the
existing staff.
O Planning had temporary vacancies over the course of the year, including the Code
Administration and Planning Manager described above, and ended 2008 $29,842 or 4.0%
less than the amended budget.
Police Pension was underspent by $117,777 or 8.3 %. This was the function of fewer pensioners
requiring stays in a long -term care facility, and the passing of 4 pensioners during the course of
the year.
Human Resources spent $30,494 or 6.5% less than its 2008 budget, primarily because outside
services (i.e. reclassification studies) were curtailed.
II
Records saved $70,621 or 14.4 %, because election costs were about $62,000 less than budgeted.
Cje Year -End Report 2008 Final 12 of 24
General Government Budget Results (Continued...)
Indigent Defense saved $25,000 or 6.5% of the 2008 budget, primarily as a result of a reduction in
the volume of appellate indigent defense required.
District Court reimbursements were less than the budget by $10,484 or 76.5 %. Our current
contract requires the City to remit 100% of payments collected by District Court back to them to
pay for their collection costs -- this is experiencing a decline because of the age of the outstanding
receivables. It should be noted that this expense has corresponding revenues reflected in the
"Fines and Forfeitures" line.
Parks and Recreation experienced a savings of $146,414 or 3.3% below budget, due primarily to
salary savings —the manager position was vacant for several months, in addition to other
turnover.
Street and Traffic Operations expenditures (net of encumbrances) were $349,341 — 5.6% less than
budget, primarily due to salary savings. The manager position was vacant for the full year, and
several other positions were vacant for various amounts of time throughout the year.
Cje Year -End Report 2008 Final 13 of 24
OTHER OPERATING / ENTERPRISE FUNDS
Table IV attached depicts the City's Operating and Enterprise Funds.
The Economic Development Fund revenues of $134,606 consist of the allocation approved by the
state legislature for economically challenged communities and interest. Expenditures were
$167,126 or 92.1% of budget. This fund includes professional services related to the HUD Section
108 loan program (such as appraisals, title reports, etc.), the Historic Preservation program, and
other economic development efforts focused primarily on Downtown revitalization.
Additionally, a small portion of the Community & Economic Development administrative staff
costs are allocated to this budget. The ending fund balance is $190,155, which will continue to be
used to support programs which promote economic development.
The Neighborhood Development Fund ended 2008 with a fund balance of $289,769. Actual
expenditures equaled $2,555,694 - 54.6% of budget, and revenues amounted to $2,449,032 - 53.7%
of amended budget. Because of the timing of project costs, this fund typically is underspent in
comparison to total grant authority in any particular year. The encumbrance ordinance included
$2,208,361 to carry - forward into the 2009 budget, which represents the unspent balance of Federal
grants awarded in 2008 and prior. The Marvin Garden project and single family homeownership
programs are the major components in the unspent balance.
Community Relations revenues of $518,943 were 111.3% of the amended budget. Cable franchise
fees demonstrated a 7.3% increase from 2007 actual. Expenditures equaled $496,341 - 90.7% of the
2008 amended budget authorization. The encumbrance ordinance included about $11,000 of
projects. The year -end fund balance of $862,574 includes the carry forward of capital grant
resources from the cable TV franchise provider, per contract.
The Community Services Fund includes the Healthy Families Yakima grant funded program.
Expenditures of $377,598 were 64.0% of budget, the function of the timing of major components of
the program. Revenues of $388,224 consist of grant reimbursements, donations, and interest. The
ending balance is $11,168. For the program to continue as designed, donations will need to be
secured to match the grant, as there is a 33% match requirement.
Growth Management Fund has a year -end balance of $24,372. The only activity contemplated in
this fund relates to grant - supported growth management planning projects, which are rebudgeted
in 2009. The cash balance is restricted as program/local match for these grants.
Cemetery Fund revenues were $281,141 - 101.3% of amended budget estimates and expenditures
equaled $251,637 - under the amended budget by 2.3% or $5,962. The year -end Cemetery fund
balance is $66,619. Revenues included a subsidy of $90,000 from the Parks and Recreation Fund
that was required to maintain an adequate fund balance.
Cje Year-End Report 2008 Final 14 of 24
ah Other Operating / Enterprise Funds (Continued...)
IN V Emergency Services Fund actual revenues equaled $1,046,508 - 99.6% of budget estimates. The
EMS levy is an allocation based on population and call volume. Expenditures equaled $1,084,313
- 98.2% of budget. The year -end balance is $181,421.
Public Safety Communications revenues were $2,535,003 - 101.8% of budget and expenditures
equaled.$2,703,602 - 100.5% of budget. This budget experienced an overrun of $12,221 primarily
because of extensive overtime caused by unexpected staff turnover. Typically, position vacancies
result in savings. However, since public safety dispatch is a "24/7" operation, vacancies result in
overtime costs to cover the shifts, and the timing of the vacancies made it difficult to predict the
need for an appropriation. The ending fund balance is $263,933, which is almost a 10% reserve
and within budget guidelines.
Parking and Business Improvement (PBIA) Fund actual revenues of $78,519 were 88.6% of
budget estimates and expenditures were $111,893 - 94.5% of budget. The prior PBIA expired mid -
2008, and the replacing Downtown Yakima Business Improvement District ( DYBID) was effective
with the 4th quarter billing. The new contract with the Committee for Downtown Yakima calls for
them to receive all DYBID receipts less administrative costs. The year -end balance is $1,496.
Trolley Fund total revenue was $232,905, while expenditures were $231,261 or 49.3% of budget.
0 The year -end balance is $2,790. The budget included a reimbursable grant to refurbish the trolley
barn which will be carried forward into 2009.
Front Street Business Improvement Area total revenue was $4,088 - 149.5% of budget and
expenditures for marketing /improving the area were $2,800 - 93.3% of budget. The year -end
balance is $7,468.
Convention Center (Tourist Promotion Fund) actual revenues were $1,462,336 or 105.5% of
budget estimates, as both Hotel/Motel taxes and event revenues were strong throughout first part
of the year. Program expenditures equaled $1,394,116 - 98.8% of the amended budget for 2008.
The year -end fund balance is $230,304 or 16.3% of the budget. The economic downturn is
negatively affecting the convention/tourism industry, and hotel/motel tax is down by around 15%
through the first quarter of 2009. This is being addressed by a combination of the reduction in
operating /promotional costs and possible use of reserves.
Public Facilities District Fund realized revenues of $1,097,838 - 99.7% of the 2008 budget.
Expenditures totaled $1,087,036 - 97.5% of budget. The ending fund balance is $146,508. It should
be noted that this budget includes about $390,000 for the partial year implementation of the new
state sales tax credit dedicated for the Capitol Theatre expansion project.
Tourism Promotion Area Fund receipts and expenditures amounted to $378,205 or 96.2% of the
iio 2008 budgets. The ending balance at December 31, 2008 is $414. This fund does not build
reserves. Its purpose is to promote Yakima as a tourism destination, and all funds received each
month are forwarded to the Yakima Visitors and Convention Bureau for that purpose.
Cje Year -End Report 2008 Final 15 of 24
Other Operating / Enterprise Funds (Continued...)
Capitol Theatre Fund actual revenues of $299,595 were 98.4% of amended budget estimates, and
expenditures equaled $304,734 - 100% of the amended budget. The balance at year -end is
$148,826.
Stormwater Operating Fund concluded its first year of operations with revenue of $1,111,142 or
98.2% and expenditures of $772,857 or 69.0% of budget. The largest variance arose from the
County's regional administration. The City had $225,000 budgeted for this aspect of the program.
However, the City was successful in obtaining a grant from the Dept. of Ecology, and the County
received reimbursement directly from the grantor. Thus, the ending balance is $338,285, which
will be available for cash flow purposes, as the stormwater receipts follow the property tax cycle
(i.e. most receipts are in April and October).
Transit Operating Fund revenues of $7,238,437 were 1.2% more than budget estimates.
Approximately $4.4 million of Transit Sales Tax was allocated to this budget, while State and
Federal operating grants were $1.7 million. The remaining $1.1 million is derived from fares,
including the contracts with Selah and Union Gap, vanpool, advertising, etc. Expenditures were
$7,315,761 - 99.9% of the amended budget. The year -end fund balance is $586,757. The reduction
in sales tax is also expected to affect this budget in 2009. However, the steep decrease in the fuel
price is anticipated to balance out the reduction in revenue, so service reductions are not being
planned at this time.
Refuse Fund revenues were $4,202,482 - 99.8% of the budget estimate. Actual expenditures were
$4,458,657 - 99.1% of budget. Reserves were planned to be used because refuse carts costing about
$230,000 for the 72nd Avenue annexation needed to be purchased and delivered so that service
could begin in January, 2009. Additionally, this fund is a large diesel consumer, and the spike in
fuel costs used about $75,000 of reserves. The year -end fund balance is $204,087, which is 4.6%
(slightly below the guidelines). However, the fuel budget is estimated to be underspent in 2009
by a similar amount which could replace those reserves.
Wastewater Operating Fund actual revenues equaled $16,363,570 - 1.5% above amended budget
estimates, notably from higher than anticipated strong waste revenue. Expenditures were
$16,646,483 - 100.0% of authorized levels to payoff the private Apple Tree bonds (to eliminate
future interest expense) and maximize transfers to capital funds. The year -end fund balance is
$1,728,864.
Water Operating Fund actual revenues were $6,802,383 for 2008 - 101.4% of budget estimates,
driven by increased volume, and reimbursement for work done on capital projects. Expenditures
were $6,831,164 - 93.5% of authorized budget levels. The year -end fund balance is $1,860,722.
Cje Year -End Report 2008 Final 16 of 24
III Other Operating / Enterprise Funds (Continued...)
Irrigation Fund actual revenues equaled $2,609,515 - 101.8% of budget estimates, again primarily
due to reimbursement for work on capital projects. Expenditures were $2,631,451 or 98.6% of
budget. This includes a transfer to the capital fund and debt service fund totaling $1.2 million in
compliance with the capital charges billed by the irrigation utility. The balance at year -end was
$263,265.
Equipment Rental Fund expenditures equaled $5,486,749 and were 95.4% of the amended budget.
The encumbrance ordinance included $23,331 so that the budget for vehicle purchases scheduled
and begun in 2008 will be carried forward into 2009. Revenues of $5,951,087 were 98.4% of budget
estimates, as the transfers for additions to fleet were conservatively budgeted — actual costs and
charges to the operating divisions were less than anticipated. The $4,345,891 year -end balance
primarily represents the City's Equipment Replacement Reserve.
Environmental Fund revenues equaled $137,154 or 101.6% of budget estimates. Expenditures ,
were $199,788 or 43.9% of budget, as the contingency for dirt removal associated with Richardson -
Airway, and the fuel capacity expansion project were both carried forward into the 2009 budget.
The year -end fund balance is $514,243.
0 Public Works Administration Fund actual revenue for 2008 was $1,189,940 - equal to budget
estimates. Actual expenditures totaled $1,150,816 - less than the amended budget by 4.5%
because of staff turnover and a reduction in the telephone charge. The year -end fund balance is
$174,793.
Summary
Other Operating and Enterprise Funds generated revenues of $56,512,542 - 96.4% of budget
estimates; expenditures equaled $56,640,082 and were 93.0% of the authorized budget. The Total
Other Operating Enterprise Funds carry forward fund balance is $12,444,724. (About $4.35
million or 35% of this balance consists of the Equipment Rental Replacement Reserve.) In total,
without considering the Equipment Rental budget, the fund balances average about 14.7% of the
budget, or just slightly less than a 2 month operating reserve.
•
Cje Year -End Report 2008 Final 17 of 24
CAPITAL FUNDS
Table V represents the fiscal status of Capital Construction and Reserve Fund budgets for 2008.
The Arterial Street Fund reflects an actual expenditure level of 33.5 %, or $3,154,455 for 2008. The
major projects substantially completed in 2008 was the balance of River Road improvements in the
vicinity of 16th Avenue; the grind and overlay project on 3 Avenue; and the pedestrian crossing
improvements. Incomplete projects to be carried forward into the 2009 budget include the William
0. Douglas Trail Projects, and the reconstruction project at 16th and Washington Avenues.
Revenue equals $3,996,551 or 50.2% of budget estimates and is derived from Federal and State
shared funds, and bond proceeds for the grind and overlay /pedestrian crossing projects. Gas Tax
funds are allocated monthly and expenditures are based on an approved project prospectus. The
fund balance at year -end is $1,890,078.
The Central Business District (CBD) Capital Fund is used to account for comprehensive
downtown planning and redevelopment efforts. The major project in this budget is Phase III of
Downtown Redevelopment/Pedestrian project, to be supported by State grants and the balance of
bonds issued in the spring of 2007. Expenditures were $2,103,687 - 80.2% of budget
authorizations and revenue totaled $1,039,519 - 100.8% of budget, representing substantial
completion of Phase III. The year -end balance is $616,245.
Capitol Theatre Construction Fund is used to account for capital grants /improvements for the
Theatre. Revenues were $448,600 or 34.3% of the budget representing a Federal grant and the
beginning of a state sales tax credit from the Public Facilities District, while expenditures
consisting of start -up costs for the planned improvements to the production center were $519,198
or 40.5% of budget. The unspent appropriation will be carried - forward to 2009. The balance at
December 31 is $67,385, most of which represents start up funds transferred from the Reserve
Fund to provide cash flow for reimbursable grants.
The Parks and Recreation Capital Funds actual revenue equaled $324,293 or 29.1% -- (consisting
primarily of a transfer of REET 1 resources of $250,000 and interest earnings) while actual
expenditures (consisting primarily of the construction of the Kiwanis Skate Park and
rehabilitation of Elks Park restrooms) through year -end 2008 were $622,737 - 40.0% of the
amended budget. The major project included in the 2008 budget but just in start -up phase is the
development of upper Kiwanis Park. The unspent balance is being rebudgeted for 2009. The
year -end fund balance is $175,379.
The Fire Capital Fund experienced actual expenditures of $308,660 - 24.4% of budget, including
the final installment on a pumper truck. Revenues were $1,259,964 - 86.3% of budget estimates
primarily because the sale of the Race Street Fire Station was not actively pursued subsequent to a
study of City needs. These revenues include bond proceeds of about $750,000 to purchase a
replacement ladder truck; a transfer of $176,500 of REET 1, which can be used for Fire capital
needs relating to property/building im rovements but not rolling stock; and a transfer from
e g P g
General Fund of $150,000 to complete the pumper truck purchase. The ladder truck is rebudgeted
in 2009. The year -end balance is $1,508,058.
Cje Year-End Report 2008 Final 18 of 24
110 Capital Funds (Continued...)
Law and Justice Capital Fund revenue, which included an allocation of Local Criminal Justice
Sales Tax receipts, was $657,708 or 79.0% of budget, primarily because of the rebudgeting of a
capital grant. Project and equipment expenditures for the facilities were $545,876 - 63.2% of
authorized levels. The encumbrance ordinance included about $86,000 for the Auto Theft grant
program and other needed equipment. The fund balance at year -end was $631,403.
The Public Works Trust Construction Fund accounts for the revenue generated by the first 1 /4%
Real Estate Excise Tax (REET 1) and expenditures (including debt service) for General
Government projects associated with the State Public Works Trust Fund Loan Program. Receipts
for 2008 totaled $890,841. Of this amount, about $756,000 represents REET 1 proceeds; $60,000
represents interest and $75,000 are transfers from other funds for debt service. Expenditures were
$1,467,319 or 77.1% of budget during 2008. These include grind' and overlay project on Nob Hill
Boulevard— $550,000; Debt Service -- $290,000; Parks and Fire Capital Contributions -- $425,000;
and City Hall improvements -- $170,000. Savings resulted from the deferment of City Hall
planned improvements and favorable bids on the pedestrian crossing improvements, so that the
contingency budget was not needed. The balance at year -end is $1,451,330.
The Real Estate Excise Tax 2 1 /4% (REET 2) Capital Fund accounts for the 2 1 /4% Real Estate
0 Excise Tax, and related interest earnings. Revenue was $795,841 - 55.3% of the budget,
Expenditures were $838,865 - 41.6% of budget, as the Nob Hill bridge repair project can be done
within the arterial street budget without a cash infusion from REET 2. The balance at year end_ is
$1,230,128.
Note: Both REET revenues are particularly sensitive to the current economic condition, as
housing sales were curtailed by the national banking crisis. For 2009, the budgeted projects can
tentatively go forward, however, these reserves will likely be substantially depleted, and future
capital improvements may be postponed.
The LID Construction Control Fund is used to account for the resources and costs associated with
LID projects. Expenses for these projects are incurred and paid for through up -front interest
bearing warrants which are redeemable when the projects are completed from individual
pay -off's in full or from the proceeds of bond sales for that portion of the project or projects to be
financed over several years. The year -end fund balance is ($82,075) as there were two LID
construction projects in start-up phase as of December 31, 2008.
The Transit Capital Reserve Fund has a year -end balance of $1,114,211 which represents the
reserves that the City Council has directed be set aside to provide funds for equipment
replacement since the federal grant programs for Transit capital equipment have been phased out.
For 2008, the actual expenditures were $2,365,639 - 98.3% of budget. Encumbrances include about
$42,000 for modems to equip the 3 new replacement buses. Revenues were $1,238,499 - exceeding
0 budget estimates by $92,499.
Cje Year -End Report 2008 Final 19 of 24
Capital Funds (Continued...)
The Stormwater Capital Fund ended its first year with a balance of $127,244. Revenues of
$200,000 matched the budgeted transfer from the operating fund. Expenditures of $72,756 or 42%
of budget included drainage improvement projects. The balance of about $100,000 is available to
be carried - forward, should major projects be identified for 2009.
The Convention Center Capital Improvement Funds actual revenues were $195,400 consisting
primarily of an allocation of Hotel/Motel tax and a contribution from the Public Facilities District,
while expenditures were $104,714 - 97.2% of budget. As Hotel/Motel tax experienced a growth
rate of 7.5 %, most of this growth was allocated to the capital fund, which resulted in the revenues
exceeding budget by $105,700. The year -end balance is $307,346, with about $3,000 being
earmarked for encumbrances.
The Cumulative Reserve for Capital Improvement Funds actual expenditures were $954,159 -
10.1% of the amended budget primarily for preliminary Railroad /Grade Separation costs, which is
being funded by State and Federal grants, and the Utility Management System, funded by
transfers from the utilities. Revenues were $1,160,354, and the balance at year -end is $374,445.
(Most of the railroad project is already rebudgeted in 2009).
The purpose of the Wastewater Facilities Capital Reserve Fund is to provide resources for major
repairs /maintenance at the plant annually. Revenues equaled $150,988 - 99.3% of the amended
410
budget, and are derived from Sewer Operating contributions, Sewer Service Agreements with
Union Gap and Terrace Heights, and investment income. There were expenditures for capital
improvements and repairs of $378,887 - 52.6% of the budget authorization. The replacement of
the Dystor digester covers was about half completed. The project balance will be carried - forward
into 2009. The fund balance at year -end is $657,848.
The Wastewater Collection System Project Fund provides principally for off -site system
improvements such as new interceptor and trunk line extensions. For 2008, $2,001,747 in revenue
was provided primarily from a Public Works Trust Fund loan for River Road improvements of
$577,000, Wastewater Operating Fund transfer of $1.4 million, and investment income.
Expenditures of $227,657 were primarily for the continuation of a Wastewater project done in
conjunction with the River Road improvement project. Projects to be carried - forward into 2009
include improvements to the collection system in conjunction with the development of the
Congdon annexation area and unsewered neighborhoods. The year -end balance is $2,705,556.
In 2008 the Domestic Water Improvement Fund expenditures totaled $505,640 - 24.5% of budget,
and included the 2nd level reservoir pipe line improvement, and other watermain replacement
projects. Revenue to this fund totaled $1,805,066 and included $500,000 from the Water Operating
fund, $1.3 from the sales of the Oak Flats property, and $8,000 of interest earnings. The balance of
the 2008 budget, including a new well at Gardner Park, was mostly rebudgeted when the 2009
budget was adopted. The 2008 year -end balance is $2,813,246.
Cje.Year -End Report 2008 Final . 20 of 24
III Capital Funds (Continued...)
Wastewater Facility Project Fund actual expenditures for 2008 were $3,757,287 - 52.3% of budget,
for treatment plant projects. Actual revenues were $8,379,467 consisting primarily of $5.5 million
of revenue bond proceeds, $1,044,000 from the Wastewater Operating fund, Public Works Trust -
Fund loan proceeds of $1,725,000 for the ultraviolet disinfection project, with balance consisting of
interest earnings and other miscellaneous contributions. The year -end balance is $5,956,520 to be
used for the continuation of the capital program at the wastewater facility, and the 2009 budget
will be adjusted with a non - lapsing appropriation as needed.
The Irrigation System Improvement Fund was opened in 1998 to account for capital
improvement projects. For 2008, revenue totaled $925,051 consisting of a $897,000 transfer from
operations, and interest earnings. Expenditures were $2,382,786 or 68.8% of the budget, which
were spent primarily on the General, Hillcrest Buena Vista, and Glen Drive systems leaving a
balance of $3,053,536. Construction on various sections of the system will be carried forward into
the 2009 budget.
Summary
Capital Improvement Funds received revenues of $25,469,889 - 64.3% of budget estimates;
40 expenditures equaled $20,354,984 and were 41.4% of the authorized budget. The carry forward
fund balance is $24,597,883. Incomplete project balances were either already carried forward in
the 2009 budget, or will be recorded as non - lapsing appropriations.
4110
Cje Year -End Report 2008 Final 21 of 24
RESERVE FUNDS
IS
Table VI reflects the status of the City's Reserve Funds at year -end 2008.
The Unemployment Compensation Reserve provides for unemployment claims filed by former
employees. Through year -end 2008, the City had actual expenditures of $147,941 — 95.6% of the
amended budget. Revenues were $84,641 — 3.2% above budget. The reserve balance at year -end
is $396,497. Since the fund balance was increased by about $50,000 in 2007, rates were reduced by
50% for 2008. However, this appears to have been too much of a drop, and the rates were restored
by 25% for 2009.
The Employees Health Benefit Reserve provides for group medical, vision and dental claims for
present, retired and terminated City employees and eligible dependents. Actual expenditures
through year -end were $9,477,129 — 100.0% of the amended budget. Revenue of $9,059,538 was
102.3% of the amended budget, so that 2008 used reserves of over $400,000. This year pointed out
how volatile the insurance claim payments can be. As recently as the end of November, the fund
was breaking even (i.e. total revenues were matching total expenditures.) In December, there was
one claim run of $600,000, which brought the year -to date totals to the amounts described above.
The year -end balance is $3,096,084, before the estimate for incurred but unpaid claims.
411) Financial Disclosure requirements prescribe that liabilities be recognized when incurred. The self -
insurance auditor recommended that we record 15% of the annual paid claims as a liability.
'Therefore, about $1,247,884 in medical and dental claims representing 15% of the prior 12 months will be
recorded as a liability in the financial statements. The ending fund balance after considering this
transaction will be $1,848,200.
To accommodate health -care industry inflation coupled with the City's experience, rates were
increased by about 7.5% for the 2009 budget. Affordable insurance coverage continues to be the
focus of the Insurance Board, and a wellness program that includes overall health evaluations, a
personal nurse to assist in managing chronic diseases, and a question "hot- line" was implemented
the first of 2009. Although this is projected to be expense neutral in the near term, this change is
designed to result in healthier employees by assisting them in managing their health and,
therefore, better claims experience over time.
The Worker's Compensation Reserve provides for payment by the City of industrial insurance
claims and time loss for City employees who are injured in the performance of their assigned
duties. Revenues were $1,359,107 — 105.3% of budget estimates and expenditures were $1,435,889
— 83.5% of the amended budget. The Reserve Fund balance of $1,138,923 is the cash balance. For
the same reasons discussed above, a liability will be presented in the financial statements of about
$1,128,000, which will leave the fund balance of about $11,000. Because cash reserves were
reduced in 2008, the base rates were increased by 10% for the 2009 budget, and a surcharge to 0
Divisions generating the majority of large claims was continued.
Cje Year -End Report 2008 Final 22 of 24
Reserve Funds (Continued...)
The Wellness/Employee Assistance Program fund expenditures ended the year at $111,453 or
88.2% of budget. The encumbrance ordinance included almost $11,000 for fitness equipment.
Revenues were $122,710 or 106.7 %, leaving a balance of $152,996. Revenues are recorded at the
end of the year as medical insurance savings from vacant positions, therefore the balance needs to
carry this fund's activity to the end of the next year.
Firemen's Relief and Pension expenditures were $1,444,775 — 88.6% of budget through year -end
2008. Actual revenues were $1,627,553 — 100.6% of budget. The fund balance at year -end is
$828,631, and reflects the Pension Board's policy to build reserves for potential long -term medical
care needs of the LEOFF I retirees.
•
•
•
Cje Year-End Report 2008 Final 23 of 24
OPERATING RESERVES
Table VI illustrates the position of the City's Contingency Reserve Funds.
General Contingency Fund -- The year -end balance is $351,919.
Capitol Theatre General Contingency Reserve -- For 2008, $71,927 was transferred to the Capitol
Theatre Operating Fund to fund the Theatre's annual capital improvement program. Interest
earnings of $17,975 were added as revenue, leaving a year -end balance of $521,118.
The Risk Management Reserve Fund was established to provide for payment of insurance
coverages and for claims incurred for liability losses. Annual allocations are made by City
operating departments to this fund. Total revenues received were $2,444,854, and expenditures
equaled $2,336,050. Major expenses included: $360,000 in payments for claims, $360,000 for
outside legal services, $301,000 for property insurance coverage, and $628,000 for general liability
insurance.
The year -end Risk Management fund balance is $1,146,767, before outstanding claims are
considered. The required claim reserve at December 31, 2008 is estimated to be about $1.1 million,
which will result in an adjusted funded balance of about $46,000 to be reported in the 2008
financial statements. As the balance has improved from a negative ($97,000). at the end of 2007,
the 2009 budget included a 5% rate adjustment to pay the balance of outstanding claims,
continued professional support, and rebuild reserves. This reserve balance will also be monitored
for adequacy throughout 2009, and may require enhanced contributions from operating funds.
BOND REDS .1 PTBON RED a -S
Table VII illustrates the financial position of the City's General Obligation and Revenue Bond
Funds. Reserve balances are in compliance with bond covenants.
CONCLUSION
Given the current state of the local and national economy, the state of 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 tight controls on expenditures.
Overall, the 2008 year -end fiscal position of the City of Yakima reflects stable and responsible
budget performance.
Cje Year -End Report 2008 Final 24 of 24
0 CYakima Table I 0
Page 1 of 2 General Government Resources 100.0%
3 Year Comparison - December 2008 Year to Date of Year
General Fund Resources: 2006 2007 2008
Percent Percent Amended Percent
To -Date Received To -Date Received Budget To -Date Received
Property Tax $7,363,765 102.6% $6,820,513 99.6% $7,327,800 $7,437,787 101.5%
Criminal Justice Sales Tax Inc .3% 1,447,810 108.2% 1,492,194 104.0% 1,624,000 1,676,175 103.2%
Criminal Justice Sales Tax 842,347 107.3% 885,966 105.2% 909,000 929,067 102.2%
Sales Tax 12,698,230 103.8% 13,423,269 102.1% 13,675,000 13,719,058 100.3%
Franchise Tax
Nob Hill Water Assn. - -2.0% 39,492 123.4% 42,079 113.7% 43,000 40,245 93.6%
Natural Gas =- (2.0% 2005) 303,828 91.5% 0 0.0% 0 0 n/a
Total Franchise Tax 343,320 94.3% 42,079 113.7% 43,000 40,245 93.6%
Utility Tax
Pacific Power -- 6.0% 2,831,923 103.0% 2,939,163 102.5% . 3,012,792 3,405,099 113.0%
Nob Hill Water Assn. - -14.0% 276,011 124.9% 296,557 107.9% 300,000 283,680 94.6%
Natural Gas -- 6.0% 1,457,627 169.5% 1,496,781 99.8% 1,545,000 1,292,335 83.6%
Yakima Waste Systems - -10.0% 351,536 100.0% 340,386 96.1% 348,000 329,913 94.8%
Cellular Telephone -- 6.0% 1,186,886 115.8% 1,211,476 106.5% 1,174,000 1,446,082 123.2%
Telephone -- 6.0% 1,129,890 86.3% 1,115,985 92.7% 1,240,000 1,074,537 86.7%
Water - 14.0% 852,016 102.7% 872,853 105.2% 906,000 883,411 97.5%
Wastewater -- 14.0% 1,886,184 109.0% 1,864,131 103.1% 1,939,000 1,963,497 101.3%
Refuse -- 9.0% 347,126 107.5% 355,130 104.5% 371,000 381,196 102.7%
Total Utility Tax 10,319,199 109.8% 10,492,462 101.7% 10,835,792 11,059,750 102.1%
Business License Tax 505,021 101.0% 523,801 104.8% 500,000 533,091 106.6%
Gambling Tax 927,582 86.8% 955,484 97.0% 951,000 913,885 96.1%
Dangerous Bldg Tax Assessment 13,496 n/a 21,771 n/a 10,000 39,064 390.6%
Leasehold Excise Tax 9,744 4872.0% 4,121 2060.5% 200 3,992 1996.0%
Total Taxes 34,470,514 109.3 %. 34,661,660 101.5% 35,875,792 36,352,114 101.3%
Police Federal Grants 68,508 25.4% 216,232 127.2% 265,000 152,677 57.6%
Fire Federal Grants 42,814 73.0% 89,186 109.6% 70,000 72,000 102.9%
Criminal Justice Funds 425,553 109.9% 582,169 148.1% 424,150 568,110 133.9%
Liquor Excise Tax 351,733 109.9% 379,327 111.1% 393,000 403,020 102.5%
Liquor Profits 533,904 87.5% 608,770 101.0% 605,000 565,917 93.5%
School Dist. #7 Resource Officers 332,552 96.9% 342,552 99.8% 352,800 352,828 100.0%
Other Intergovermental 360,708 133.9% 282,110 107.1% 485,855 527,010 108.5%
Total Intergovernmental 2,115,772 93.7% 2,500,346 113.9% 2,595,805 2,641,562 101.8%
erp 4/30/2009 Revenues Gen Gov- 2008.xls
City of Yakima Table I
Page 2 of 2 General Government Resources 100.0%
3 Year Comparison - December 2008 Year to Date of Year
General Fund Resources (Contd.) 2006 2007 2008
Percent Percent Amended Percent
To -Date . Received To -Date Received Budget To -Date Received
Licenses and Permits $741,492 125.3% $982,084 124.6% $871,500 $993,122 114.0%
Charges for Service 4,182,839 101.9% 4,422,803 102.8% 4,471,293 4,808,037 107.5%
Fines and Forfeitures 1,309,431 99.5% 1,420,275 109.8% 1,378,700 1,582,815 114.8%
Misc. Revenue 832,143 131.6% 974,239 124.5% 945,384 1,010,088 106.8%
Non - Revenue 100,688 99.7% 14,946 1494.6% 1,000 467 46.7%
Transfers From Other Funds 40,000 36.4% 40,000 100.0% 40,000 40,000 100.0%
Capital Lease Financing 0 38,293 0 0
Total General Fund Revenue $43,792,879 107.7% $45,054,646 103.5% $46,179,474 $47,428,205 102.7%
Beginning Balance 4,762,269 100.0% 5,439,858 100.0% 6,250,708 6,250,708 100.0%
Total General Fund Resources $48,555,148 106.9% $50,494,504 103.1% $52,430,182 $53,678,913 102.4%
Parks & Recreation Fund Resources:
Property Tax 1,901,985 103.3% 1,938,000 100.0% 1,800,000 1,800,000 100.0%
Intergovernmental 97,308 114.3% 167,291 92.3% 174,700 153,252 87.7%
Charges for Services 686,391 86.1% 860,126 112.1% 913,465 886,086 97.0%
Misc. Revenue/Non- Revenue 253,035 124.2% 240,523 93.9% 198,270 290,712 146.6%
Transfers From Other Funds 1,015,105 105.9% 1,023,126 103.8% 1,105,000 1,046,359 94.7%
Total Parks/Rec. Fund Revenue $3,953,824 101.7% $4,229,066 102.4% $4,191,435 $4,176,409 99.6%
Beginning Balance 479,487 100.0% 431,032 100.0% 549,439 549,439 100.0%
Total Parks/Rec. Fund Resources $4,433,311 101.5% $4,660,098 102.2% $4,740,874 $4,725,848 99.7%
Street/Traffic Fund Resources:
Property Tax 3,314,344 100.0% 3,920,202 100.0% 4,220,202 4,220,202 100.0%
County Road Tax 508,416 0.0% 161,316 0.0% 0 9,260 0.0%
Fuel Tax - Street . 1,299,298 104.9% 1,374,901 97.6% 1,430,000 1,306,335 91.4%
Other Intergovernmental 0 0.0% 14,396 0.0% 0 0 0.0%
Charges for Services 34,449 202.6% 77,227 454.3% 15,760 35,274 223.8%
Misc. Revenue/Non- Revenue 49,152 489.1% 125,656 209.3% 60,050 145,373 242.1%
Total Street/Traffic Fund Revenue $5,205,659 102.1% $5,673,698 101.2% $5,726,012 $5,716,444 99.8%
Beginning Balance 1,133,674 100.0% 1,064,222 100.0% 1,386,069 1,386,069 100.0%
Total Street/Traffic Fund Resources $6,339,333 101.7% $6,737,920 101.0% $7,112,081 $7,102,513 99.9%
Total General Government Resources $59,327,792 105.9% $61,892,522 102.8% $64,283,137 $65,507,274 101.9%
III 0 III
ern 4/30/2009 Revenues Gen Gov- 2008.xls
i CSYakima Table II fa
General Government Summary of Operations 100.0%
3 Year Comparison - December 2008 Year to Date Of Year
2006 2007 2008
Percent Percent Percent
Received Received Amended Received
To -Date Expended To -Date Expended Budget To -Date Expended
General Fund
Beginning Balance $4,762,269 $5,439,858 .$6,250,708 $6,250,708
Revenues $43,792,879 107.7% $45,054,646 103.5% $46,179,474 $47,428,205 102.7%
Expenditures $43,116,800 98.3 %, $44,233,877 97.5% $48,472,230 $46,916,043 96.8%
Ending Balance $5,438,348 $6,260,627 $3,957,952 $6,762,870
Parks and Recreation Fund
Beginning Balance $479,487 $431,032 $549,439 549,439
Revenues $3,953,824 101.7% $4,229,066 102.4% $4,191,435 $4,176,409 99.6%
Expenditures $4,001,793 98.2% $4,110,659 97.9% $4,420,906 $4,274,493 96.7%
Ending Balance $431,518' $549,439 $319,968 $451,355
Street/Traffic Fund
Beginning Balance $1,133,674 $1,064,222 $1,386,069 $1,386,069
Revenues $5,205,659 102.1% $5,673,698 101.2% $5,726,012 $5,716,444 99.8%
Expenditures $5,275,112 95.5% $5,351,851 90.6% $6,213,833 $5,817,125 93.6%
Ending Balance $1,064,221 $1,386,069 $898,248 $1,285,388
Total General Government
Beginning Balance $6,375,430 $6,935,112 $8,186,216 $8,186,216
Revenues $52,952,362 106.7% $54,957,410 103.2% $56,096,921 $57,321,058 102.2%
Expenditures $52,393,705 98.0% $53,696,387 96.8% $59,106,969 $57,007,661 96.4%
Net General Government Balance $6,934,087 $8,196,135 $5,176,168 $8,499,613
erp 4/30/2009 Revenues Gen Gov- 2008.x!s
Table IV
City of Yakima
Other Operating /Enterprise Funds
2008 Budget vs. Actual
Actual Revenue Appropriations
Beginning % % Ending
Other Operating/ Balance Amended Actual Re- Amended Actual Ex- Balance
Enterprise Funds 1/1/2008 Budget Revenue ceived Budget Expenditures pended 12/31/2008
Economic Development $ 222,675 $ 139,168 $ 134,606 96.7% $ 181,556 $ 167,126 92.1% $ 190,155
Neighborhood Development 396,431 4,563,480 2,449,032 53.7% 4,679,359 2,555,694 54.6% 289,769
Community Relations 839,972 466,100 518,943 111.3% 547,054 496,341 90.7% 862,574
Community Services 542 584,485 388,224 66.4% 590,107 377,598 64.0% 11,168
Growth Management 24,372 25,466 0 0.0% 49,745 0 0.0% 24,372
Cemetery 37,115 277,550 281,141 101.3% 257,599 251,637 97.7% 66,619
Emergency Services 219,226 1,050,213 1,046,508 99.6% 1,104,501 1,084,313 98.2% 181,421
Public Safety Communications 432,532 2,490,581 2,535,003 101.8% 2,691,381 . 2,703,602 100.5% 263,933
P.B.I.A. (Parking & Business Imp.) 34,870 88,600 78,519 88.6% 118,343 111,893 94.5% 1,496
Trolley 1,146 469,653 232,905 49.6% 468,619 231,261 49.3% 2,790
Front Street Business Imp. Area 6,180 2,735 4,088 149.5% 3,000 2,800 93.3% 7,468
Convention Center
(Tourist Promotion) 162,084 1,386,724 1,462,336 ` 105.5% 1,410,662 1,394,116 98.8% 230,304
Public Facilities District 135,706 1,101,000 1,097,838 99.7% 1,114,424 1,087,036 97.5% 146,508
Tourism Promotion Area 414 393,000 378,205 96.2% 393,000 378,205 96.2% 414
Capitol Theatre 153,965 304,567 299,595 98.4% 304,737 304,734 100.0% 148,826
Stormwater Operating Fund 0 1,131,000 1,111,142 98.2% 1,120,506 772,857 69.0% 338,285
Transit 664,081 7,150,005 7,238,437 101.2% 7,324,976 7,315,761 99.9% 586,757
Refuse 460,262 4,209,470 4,202,482 99.8% 4,500,989 4,458,657 99.1% 204,087
Wastewater Operating 2,011,777 16,124,580 16,363,570 101.5% 16,649,719 16,646,483 100.0% 1,728,864
Water Operating 1,889,503 6,710,437 6,802,383 101.4% 7,304,687 6,831,164 93.5% 1,860,722
Irrigation 285,201 2,562,950 2,609,515 101.8% 2,668,515 2,631,451 98.6% 263,265
Equipment Rental 3,881,553 6,047,251 5,951,087 98.4% 5,750,023 5,486,749 95.4% 4,345,891
Environmental 576,877 135,000 137,154 101.6% 454,750 199,788 43.9% 514,243
Public Works Admin. 135,669 1,189,940 1,189,940 100.0% 1,205,464 1,150,816 95.5% 174,793
Total Other Operating Funds $ 12,572,153 $ 58,603,955 $ 56,512,653 96.4% $ 60,893,716 $ 56,640,082 93.0% $ 12,444,724
cje 4/30/2
ii
411
III
111 III TOT
City of Yakima
Capital Improvement Funds
2008 Budget vs. Actual
Actual Revenue Appropriations
Beginning % % Ending
Balance Amended Actual Re- Amended Actual Ex- Balance
Capital Improvement Funds 1/1/2008 Budget Revenue ceived Budget Expenditures vended 12/31/2008
Arterial Street $ 1,047,982 $ 7,964,981 $ 3,996,551 50.2% $ 9,420,282 $ 3,154,455 33.5% $ 1,890,078
Central Business District Capital 1,680,413 1,030,800 1,039,519 100.8% 2,622,227 2,103,687 80.2% 616,245
Capitol Theatre Construction 137,983 1,308,353 448,600 34.3% 1,281,103 519,198 40.5% 67,385
Parks and Recreation Capital 473,823 1,115,000 324,293 29.1% 1,555,838 622,737 40.0% 175,379
Fire Capital 556,754 1,459,588 1,259,964 86.3% 1,265,272 308,660 24.4% 1,508,058
Law and Justice Capital 519,571 833,000 657,708 79.0% 863,300 545,876 63.2% 631,403
Public Works Trust Construction 2,027,808 1,035,000 890,841 86.1% 1,902,702 1,467,319 77.1% 1,451,330
REET 2 Capital 1,273,152 1,440,000 795,841 55.3% 2,016,215 838,865 41.6% 1,230,128
LID Construction Control (37,413) 385,000 0 0.0% 535,000 44,662 8.3% (82,075)
Transit Capital Reserve 2,241,351 1,146,000 1,238,499 108.1% 2,407,652 2,365,639 98.3% 1,114,211
Stormwater Capital Fund 0 200,000 200,000 100.0% 175,000 72,756 41.6% 127,244
Convention Center
Capital Improvement 216,660 89,700 195,400 217.8% 107,682 104,714 97.2% 307,346
Reserve for Capital Improvement 168,250 9,380,100 1,160,354 12.4% 9,419,474 954,159 10.1% 374,445
Wastewater Facilities
Capital Reserve 885,747 152,000 150,988 99.3% 720,000 378,887 52.6% 657,848
Wastewater Collection System Proj. 931,466 1,441,350 2,001,747 138.9% 2,115,000 227,657 10.8% 2,705,556
Domestic Water Improvement 1,513,820 1,708,000 1,805,066 105.7% 2,065,200 505,640 24.5% 2,813,246
Wastewater Facility Project 1,334,340 7,972,467 8,379,467 105.1% 7,187,473 3,757,287 52.3% 5,956,520
Irrigation System Improvement 4,511,271 931,000 925,051 99.4% 3,463,400 2,382,786 68.8% 3,053,536
Total Capital Improvement Funds $ 19,482,978 $ 39,592,339 $ 25,469,889 64.3% $ 49,122,820 $ 20,354,984 41.4% $ 24,597,883
cje 4/30/2009
•
Table VI
City of Yakima
Reserves and Other Funds
2008 1udget vs. Actual
Actual Revenue Appropriations
Beginning % % Ending
Employee Benefit Balance Amended Actual Re- Amended Actual Ex- Balance
Reserves 1/1/2008 Budget Revenue ceived Budget Expenditures pended 12/31/2008
Unemployment Compensation
Reserve $ 459,797 $ . 82,000 $ 84,641 103.2% $ 154,739 $ 147,941 95.6% $ 396,497
Employees Health Benefit
Reserve 3,513,675 8,856,940 9,059,538 102.3% 9,478,906 9,477,129 100.0% 3,096,084 (1)
Worker's Compensation Reserve 1,215,705 1,290,300 1,359,107 105.3% 1,719,838 1,435,889 83.5% 1,138,923 (1)
Wellness/EAP 141,739 115,000 122,710 106.7% 126,382 111,453 88.2% 152,996
Firemens' Relief and Pension 645,853 1,617,230 1,627,553 100.6% 1,630,203 1,444,775 88.6% 828,631
Total Employee Benefit
Reserve Funds $ 5,976,769 $ 11,961,470 $12,253,549 102.4% $ 13,110,068 $ 12,617,187 96.2% $ 5,613,131
Operating Reserves
Contingency $ 359,070 $ 75,000 $ 75,000 100.0% $ 300,000 $ 82,151 27.4% $ 351,919
Capitol Theatre Reserve 575,070 30,000 17,975 59.9% 571,927 71,927 12.6% 521,118
Risk Management Reserve 1,037,963 2,281,057 2,444,854 107.2% 2,474,668 2,336,050 94.4% 1,146,767 (1)
Total Operating Reserve Funds $ 1,972,103 $ 2,386,057 $ 2,537,829 106.4% $ 3,346,595 $ 2,490,128 74.4% $ 2,019,804
Other Funds
Cemetery Trust $ 555,681 $ 26,000 $ 29,810 114.7% $ 27,000 $ 19,126 70.8% ° $ 566,365
Pass Through Grants $ - $ - $ - $ - $ - $ -
(1) These fund balances exclude an accrual for incurred but not reported claims.
cje 4/30/2
•
111 ill
i • T4I
City of Yakima
Bond Redemption Funds
2008 Budget vs. Actual
Actual Revenue Appropriations
Beginning % % Ending
General Obligation Bond Balance Amended Actual Re- Amended Actual. Ex- Balance
Redemption 1/1/2008 Budget Revenue ceived Budget Expenditures pended 12/31/2008
L.I.D. Guaranty $ 79,682 $ 300 $ 37 $ - $ - $ 79,719
1994 G.O. Ltd. - Police & Streets 267,586 514,100 514,000 100.0% 517,938 517,938 100.0% 263,648
1995 G.O. Street, Parks & Fire 194,363 295,000 293,676 99.6% 293,788 293,788 100.0% 194,251
1997 G.O. Line of Credit 918 23,500 24,366 103.7% 25,500 25,283 99.1% . 1 .
1996 G.O. LTD - Convention Center 59,062 431,000 431,000 100.0% 428,645 428,645 100.0% 61,417
1998 G.O. Street Bond. 90,977 87,961 87,961 100.0% 178,938 178,938 100.0% 0
2002 G.O. Convention Center 150,482 460,000 460,000 100.0% 459,075 459,075 100.0% 151,407
2005 G.O. Parks and Recreation Bond 4,661 650,100 682,298 105.0% 683,231 682,296 99.9% 4,663
L.I.D. Debt Service. Control 20,477 191,000 94,029 49.2% 187,000 84,618 45.3% 29,888
Total General Obligation Bond
Redemption Funds $ 868,208 $ 2,652,961 $ 2,587,367 97.5% $ 2,774,115 $ 2,670,581 96.3% $ 784,994
Water /Sewer Revenue Bond Redemption
1997 Water Revenue Bond Reserve $ 269,207 $ 400 $ 400 100.0% $ - $ - - $ 269,607
1978 Revenue Bond Reserve 346,527 700 700 100.0% 345,827 202,564 144,663
Water /Sewer Revenue Bonds 109,529 547,595 547,889 100.1% 547,195 544,091 99.4% 113,327
Apple Tree Sewer Revenue Bond 0 521,339 521,339 100.0% 521,339 521,339 100.0% 0
1997 Water Revenue Bonds 4,466 243,085 243,510 100.2% 243,186 243,186 100.0% 4,790
1978 Water /Sewer Revenue Bond 165,636 472,564 368,900 78.1% 638,200 534,536 83.8% 0
2003 Wastewater Bond Redemption 1 1,346,635 1,346,632 100.0% 1,346,635 1,346,631 100.0% 2
2003 Irrigation Bond Redemption 35,435 318,203 318,203 100.0% 318,203 318,203 100.0% 35,435
Water /Sewer Revenue Bond Reserve 962,700 2,500 2,500 100.0% 0 0 965,200
2003 Sewer Revenue Bond Reserve 828,650 0 0 . 0 0 828,650
Total Water /Sewer Revenue
Bond Redemption Funds $ 2,722,151 $ 3,453,021 $ 3,350,073 97.0% $ 3,960,585 $ 3,710,550 93.7% $ 2,361,674
cje 4/30/2009