Loading...
HomeMy WebLinkAbout03/31/2009 00 Agenda and Packet G Y...4 ��lll ~ ` O i , i l `h % • 0 11.00 , % c (+k illllOR 16 a v ul. .7 `. e• ' M . v I Ill Il r l L F..a kf J., n ti' So- F,c:•• � 1. t: P s+ t J, x ,I A y # - Z�, y � 'v1 p r , 9 r "‘" I y ' - ris 1 6, , i C re nJ�y� '4 , (f� of .Y4 aDavid Edler, Mayor Micah Cawley, Assistant Mayor % ) Yakima Kathy Coffey C� .. ' �' Rick -Ensey �;� City Council Bill Lover ---- --" p `= ,0_ _ Agenda Neil McClure 129 N. 2nd Street,Yakima,WA.9890I Sonia Rodriguez Phone: (509) 575 -6000 • Fax (509) 576 -6614 City Manager Email: ccouncil @ci.yakima.wa.us • www.ci.yakima.wa.us Richard A. Zais, Jr. Anyone wishing to address the Council, please fill out the form found on the tables and give it to the City Clerk JOINT YAKIMA CITY COUNCIL AND BOARD OF COUNTY COMMISSIONERS STUDY SESSION MARCH 31, 2009 — 8:00 — 9:30 A.M. COUNCIL CHAMBERS — YAKIMA CITY HALL 1. Roll Call 2. Yakima County's budget process and priority- setting strategies 3. Audience comments (9:15 - 9:30 a.m.) 4. Adjournment to April 4, 2009 at 8:30 a.m. for City Council Retreat at the Harman Center, Classroom A, 101 North 65 Avenue Yakima ril an City of Yakima Vision Statement: To create a culturally diverse, economically vibrant, safe, and strongYakima community. I Adopt ed March 2008 1994 YAKIMA COUNTY BUDGET PRIORITIES General Fund The critical budgeting questions we hold ourselves accountable to are: • What are the community needs expected from government and defined by our constituents? • What are the priorities for County expenditures which will achieve those community needs? • What are the functions (strategies and activities) we can implement and/or strengthen to most effectively achieve these priorities? • What are the key budget policies necessary to effectively guide defined functions? I. Community Needs: A process by which county government formulates their leadership understandings of community needs. The process occurs through daily business activities and assessments, community hearings, and other interactions with our community. A preliminary budget is formed based upon those defined needs. The budget process embraces those needs by bringing together all elected officials to collectively embrace funding priorities. II. Priorities: Major community- needed services are granted, mandated, or requested by Federal /State and/or Community. These community priorities can be partnerships or solely provided services by County government where the greatest efficiencies or effectiveness can be gained. These priorities go through an on -going review implemented through the resource allocation process. • Economic Development — Efforts that seek to improve the economic well -being of our community by creating and/or retaining jobs and supporting or growing incomes and the tax base. Support for the Yakima County Development Association would be an example. • Governmental Services — Indirect County services provided by government that support the internal functions of government. This support may be in the form of providing basic support services such as accounting services or human resources. Support may also take the shape of providing resources for the operation of the government through property assessment and collection. ' See Resource Allocation Policy in section IV. • Health and Human Services — Efforts to improve the physical and mental well -being of the citizens of our community using preventative measures. Operational support of the Yakima County Health District would be an example. • Law and Justice — The ability to provide effective and timely resolution to legal matters while assuring dignified and fair treatment to all participants that meet Federal, State and local laws. Courts, prosecution and defense are all components of the law and justice system. • Public Safety - The protection of the general population from all manner of significant danger, injury, damage or harm as may occur during a criminal act or natural disaster, and the prevention of the same. This protection is typically provided by the Sheriff's Department, Department of Security, and the Department of Corrections. • Public Services — Direct services that are provided by government to its citizens that the private sector does not provide for or provides limited service. Examples include elections, document recording, planning, etc. • Quality of Life — Efforts to improve the well -being of the community by providing services through cultural and recreational opportunities. Parks, pathways and investments in service organizations would be examples of quality of life programs. III. Functions: The county priorities are financially implemented through major and minor functions funding allocations to strategically meet community needs. 1. Maior Function: A subset of County priorities is distinguished by essential and specialized strategies necessary to achieve a County priority. To be a major function it must meet the following criteria: • Community cannot effectively or efficiently provide this function without County government participation. • County government must have adequate operational resources (financial/physical /human) to provide this major function. • This function must clearly meet distinct needs of a community priority. 2. Minor Function: A group of related activities that fulfill major functions. To be a minor function it must meet the following criteria: • Minor functions are distinct components of a major function necessary to be fulfilled. • A minor function requires operating resources such as financial, physical or human resources to complete a major function. IV. Policies: The following policies have been adopted by the Board of County Commissioners to effectively guide the defined functions. 1. Resource Allocation Policy (2007) — This policy provides for the Board to annually allocate resources to the funding priorities set by the Board. 2. Reserve Policy (2006) — This policy defines reserve objectives, three classifications of reserves (restricted, designated and available) that make up total reserves, reserve levels and the process for replenishing of total reserves. 3. Expenditure (Contingency) Policy (2007) — This policy encourages elected officials and managers to budget and spend prudently. It is intended to allow departments to fully utilize their annual budgets as well as provide accountability within defined cost categories. The Expenditure (Contingency) Policy replaced a previous policy called Carryout where a department was allocated 40% of their unspent budget for capital and one -time expenses. Carryout was very difficult to budget and was a passive approach to resource allocation. 4. Flex Costs Policy (2006) — This policy defines a flex cost as line item budget costs volatile in nature and difficult to anticipate and/or predict within any year to year line item budget projection. This policy gives the Board of County Commissioners the ability to authorize what would be identified as a flex cost, reserve levels for flex costs and the annual process to fund flex costs. Resource Allocation Policy Upon completion of the preliminary annual General Fund budget allocation review process, the BOCC will exercise its final budgetary authority to allocate all revenues (gains or losses) within the respective seven funding priorities. The BOCC will strive to not reduce, in real aggregate dollars, any funding priority when there is total General Fund general revenue growth. If any County departments and /or Offices have cost increases (excluding "flex costs" as defined within the Yakima County Flex Cost Policy) these cost increases will not serve as a basis for additional and /or supplemental appropriations by the BOCC out of the General Fund. Background: The General Fund has reflected varying levels of growth in revenue from year to year. However, in certain years where initiatives such as I -747 (1% Property Tax growth) and I -695 ($30 car tabs) were implemented, the growth was ineffective and damaging to the General Fund budgets in terms of resources to keep up with operational costs. In most years since these initiatives there has been a disproportionate growth in operational costs exceeding the growth in revenue. This chain of events and circumstances has mandated a shift in the allocation of General Fund resources. These shifts have adversely impacted many types of County services causing the reduction or elimination of health and human services programs, economic development programs, quality of life programs, and other services to the community. The Board of Yakima County Commissioners (BOCC) has the statutory authority, responsibility and obligation to reasonably manage County revenues in a manner that will foster a broad spectrum of services to benefit the community of the County. Revenue allocations are based upon the needs of a changing community as well as the modifications in funding levels. Many revenue resources are allocated for specific purposes, as defined, and may not be used outside of those defined purposes. A portion of the revenue resources is the "General Fund ". Annual General Fund Revenues: Each year, the BOCC, Budget Director, elected officials and department heads jointly work towards an " estimate" of anticipated revenues for the following year's annual General Fund budget. This " estimate ". creates a baseline point of reference for the budget process. It is clearly understood by the BOCC, Budget Director, elected officials and department heads that this is only an "estimate ". Therefore, the BOCC must evaluate fiscally responsible levels of reserves to reasonably address unanticipated funding shortfalls, expense overruns, cash flow fluctuations and/or any other similar issues. 3/13/2009 Accordingly in 2005, the BOCC established a General Fund Reserve Policy to provide parameters to enhance Yakima County's ability to meet its financial obligations. The General Fund Reserve must be fully funded, as defined by policy. When the reserve policy funding requirements are met as determined by the BOCC, the remaining • budgetary impacts, whether positive or negative, will be distributed according to the funding priorities of Yakima County. Funding Priorities of Yakima County: Revenues are annually allocated according to the funding priorities set by the BOCC in accordance with resolution 134 -2007 "Funding Priorities of Yakima County" and with input from elected County officials, Department Heads and public comment. The seven funding priorities of Yakima County are as follows: (alphabetical) o Economic Development o Governmental Services o Health and Human Services o Law and Justice o Public Safety o Public Services o Quality of Life Definitions: County Funding Priorities: (see example below) Major Community- needed services are granted, mandated, or requested by Federal /State and/or community. These community priorities can be partnerships or solely provided services by County government where the greatest efficiencies or effectiveness can be gained. General Revenue: Revenues that are not received for a specific purpose that are used to support the governmental function. General revenues would not include grants, contracts, or other funding sources required to be used for a specific purpose. Major Functions: (see example below) A subset of County priorities is distinguished by essential and specialized services necessary to achieve a County priority. To be a major function it must meet the following criteria: • The community cannot effectively or efficiently provide this function without County government participation. • County government must have adequate operational resources (financial/physical /human) to provide this major function. • This function must clearly meet distinct needs of a community priority. 3/13/2009 Minor Functions: (see example below) A group of related programs that fulfill major functions. To be a minor function, it must meet the following criteria: • Minor functions are distinct components of a major function necessary to be fulfilled. • A minor function requires operating resources such as financial, physical or human resources to complete a major function. Tasks: Work or job activities that have distinct and describable elements to fulfill minor functions. Example: Governmental Services County $549111749 810% ` ` ' 05A Priorities 7 $5,985,842`, 9:996% g' >r 4 ..06.B Y ` s: 25,147,„ ,23;830% ;.. 'O;ther $175,000 7.896% Unfunded Accounts Payable Payroll Major $213,383 3.743% 05 A $202,713 3.556% 05 A Function $212,511 ` 3.460% 06 $208,833 :3.400% 06 B (. . 0 0.100% ,,, hei , D 0110 %; , , ®. $0 0.000% Unfunded $0 0.000% Unfunded Voucher. auditing Cash vouchers Voucher, data entry . Minor $130,635. 05 A $43,545 05 $21,773 05 A Function $130,108 06 B $43,369 ; 06 B $21,684 06B a 0 ;Other. grgs7 $Ors Othe 0 MAE '.0,651Ft =Othe s $0 Unfunded $0 Unfunded' $0 Unfunded Reporting -AP Bank deposits Vendors $10,886 05 A $4,373 05 $2,171 05 A $10,844 06 B $4,337 06 B $2,169 06 B icc� Other= 2742r„ . Othe rantiALON $0 Unfunded $0 Unfunded I $0 Unfunded Adopted by Resolution 262 -2007 3/13/2009 General Fund Reserve Policy Reserve Objectives: Adequate reserve levels are a necessary component of the County's overall financial management strategy and a key factor in external agencies' measurement of the County's financial strength. The Board of County Commissioners will determine the level of reserves it deems necessary, essential and fiscally prudent as well as the level of reserves required by law, ordinance and/or bond covenants to ensure service levels, sufficient cash flow, financial stability, and protection against economic downturns and emergencies. Prudent use of reserve funds enables the County to address future hidden or unanticipated costs, take advantage of matching grant funds and the ability to exercise flexible financial planning for future projects. The Board of County Commissioners has determined it is fiscally necessary, essential and prudent to have three types of reserves within the Total Reserves of the General Fund: Available, Designated, and Restricted. Total Reserves: In order for the County to be in a fiscally responsible position, the Board of County Commissioners will annually establish and maintain a General Fund total reserve level which the Board believes is fiscally necessary, essential and prudent. This budgetary total reserve level is essential to protect cash flow and other stated reserve objectives in offsetting significant financial revenue fluctuations. In the event the annual total reserve level as determined by the Board of County Commissioners is exceeded, these additional funds will be deemed as surplus reserves and may be designated for any County General Fund one -time expense use as deemed appropriate by the Board of County Commissioners. Replenishing of Total Reserves: A current total reserve level of at least twelve percent (12 %) has been set by resolution by the Board of County Commissioners. However, depending on the Board of County Commissioners' assessment of the County's fiscal situation, the Board may choose to adjust the levels up or down by future resolution action. The Board of County Commissioners shall determine the necessary budgetary actions through prudent management of revenue, expenditures, and/or contributions from the annual General Fund budget to keep the total level of reserves at the appropriate level. If, at any time, the level of total reserves is projected to drop below the adopted reserve levels, the Board of County Commissioners will institute budgetary actions necessary to bring these total reserves up to the established level of reserves within the following two (2) subsequent annual budget cycles. Such Board of County Commissioners budgetary actions may include, but are not limited to, the following: preventing the future use of available reserves; prohibiting formation of new designated reserves; suspending or amending the Board of County Commissioners current Carryout Policy; mid -year budget reductions; program reductions; freezing new hiring; freezing of all salaries and benefits; and/or implementing layoffs. Restricted Reserves: Restricted reserves are either required to be set aside in accordance with general accepted accounting principals (GAAP) or by state or federal requirement. Restricted reserves are therefore set by actions outside BOCC determination and are deemed to be a primary requirement and part of the total reserve levels necessary. Designated Reserves: Designated reserves cannot be used for annually re- occurring funding expenses (e.g. wage and benefit increases). Designated reserves are for specific projects or dedicated funding streams as determined by the Board of County Commissioners. Appropriation of these funds must not disrupt the cash flow requirements of the General Fund. Available Reserves: Available reserves must be used to achieve the total reserve levels as determined by the Board of County Commissioners. These remaining available reserves may only be used as determined by the Board of County Commissioners for one -time funding needs and cannot be used for annually re- occurring funding expenses(e.g. wage and benefit increases). • Adopted by Resolution 56 -2006 General Fund Expenditure Policy To encourage elected officials and managers to budget and spend prudently, the Board of County Commissioner's has established a General Fund Expenditure Policy. The policy is intended to provide allocation of resources that allow departments the ability to fully utilize their annual budget. The budget is classified into four major categories as defined by the Washington State Auditor's Budgeting, Accounting, Reporting System (BARS) as follows: • Salarv/Benefits — Includes salary costs, overtime, extra help, benefits and year end annual leave accruals (objects 10 and 20 in BARS). • Supplies — Includes supplies, fuel consumed, and small tools and minor equipment (object 30 in BARS). • Other Services and Charges — Includes professional services, communication, travel, advertising, operating rentals and leases, insurance, utilities, repairs and maintenance, intergovernmental services and other miscellaneous costs (objects 40 and 50 in BARS). • Contingency /Capital Expenditures — Contingency is to be used for unanticipated over - expenditures. Capital expenditures include one -time improvements such as software upgrades, equipment, furniture and limited term projects not funded as an ongoing portion of the annual operations budget. Each department mayy adjust the respective expenditure categories of Salaries/Benefits, Supplies, and Other Services and Charges by +/- 5% annually at their discretion. The Contingency /Capital Expenditures category may be fully utilized at the discretion of each department to fund the other categories as long as they do not exceed the 5% buffer. Any adjustments which exceed +/- 5% will require notification and justification to the BOCC for such activity. The Contingency /Capital expenditure category will be annually established at 1% of the respective department total allocated resources, excluding grants /contracts, fixed and flex costs. Rollover of unused Contingency /Capital Expenditure funds will be allowed, not to exceed 5% of the respective department total allocated resources, excluding grants /contracts, fixed and flex costs. Adopted by Resolution 416 -2007 3/13/2009 Flex Costs Policy Definition of Flex Costs: Annual General Fund line item budget costs volatile in nature and difficult to anticipate and/or predict within any year to year line item budget projection. Due to their unpredictable nature, the Board of County Commissioners deems it necessary, essential and fiscally prudent to maintain a Flex Costs Reserve which will be contained within the designated reserves of the General Fund. Flex Cost Authorization: These costs are specifically determined, designated and budgeted by the Board of County Commissioners throughout the annual budget cycles. Annual budget resources will be determined by the Board of County Commissioners based on the Board's assessment of necessary, essential and fiscally prudent funding levels. Any allocation of these funds is subject to the Board of County Commissioners determinations and prior approvals with regard to the estimated costs of operations as submitted by each department. The Board of County Commissioner's current policy is that the total annual budget resources for allocation must be no less than 80% of the six previous line item years for each respective flex cost. Those allocations may reflect year to year cyclical adjustments within that line item (e.g. election cycle costs). In the event a flex cost line item falls below its annual budgeted amount, those unspent funds will be allocated to and be held in the flex costs reserve account to address future unanticipated and unpredictable flex cost expenditures as determined by the Board of County Commissioners. When an actual flex cost line item exceeds its annual budget projection, the Board of County Commissioners will conduct an assessment of the reasons for the overrun and if the Board determines that this expenditure is necessary, essential and fiscally prudent then the Board may determine to use appropriate resources available to address the annual flex cost overrun. Such resources the Board may choose to utilize include, but are not limited to, the use. of: Designated flex costs reserves, general fund available reserves, affected department line item budget adjustments; and/or special funding sources allocated to an affected department or departments within the budgetary control of the Board of County Commissioners. Each flex cost line item is managed by designated departments. If, at any time, a flex cost budget line item is projected to exceed its annual budget, the responsible department shall immediately provide written notification to the Board of County Commissioners. Written notification will include a revised flex cost estimate, a detailed explanation of the causes for the overrun, and proposals for mitigation of the overrun. Flex Costs Reserve: The Board of County Commissioners will determine the necessary, essential and fiscally prudent levels of reserves for designated flex costs within the governmental departments as listed: Law and Justice — Due to the volatile nature of the flex costs in these departments, the Board has determined that a designated reserve of ten percent (10 %) based on the past 6 year historical average is currently necessary, essential and fiscally prudent in the event of any flex cost shortfall. Governmental Services — Due to the less volatile and more consistent nature of the flex costs in these departments, the Board has determined that a designated reserve of five percent (5 %) based on the past 6 year historical average is currently necessary, essential and fiscally prudent in the event of any flex cost shortfall. The Board of County Commissioners will determine based on their assessment of necessary, essential and fiscally prudent funding levels on an annual basis the funds which will be designated for the flex costs reserves. In establishing the funding levels, the Board may choose from a number of potentially available resources. S uch resources may include, but are not limited to, the use of: Unspent annual flex cost funds, general fund available reserves, affected department line item budget adjustments; and/or special funding sources allocated to the affected department or departments within the budgetary control of the Board of County Commissioners. • Adopted by Resolution 99 -2006 b15 ri buted 1:11 3 / 31 b Sfud Ao n S YAKIMA COUNTY BUDGET PRIORITIES YAKIMA COUNTY BUDGET RITIES % 3 °:0 1% 1% 1 f 1% 1% YAKIMA COUNTY BUDGET PRIORITIES 1% 1% 3 °a 1% 1% 14'0 2% 1 1 Public Safety Unfunded $30,051,320 * 51.05% 2005 Actual $0 $32,276,785 * 53.14% 2006 Actual $0 $19,587,673 39.41% 2007 Actual $1,654,221 $19,890,626 38.71% 2008 Actual $1,851,622 $20,866,856 38.97% 2009 Budget $992,846 Major Minor Functions Functions Program /Population Department of Corrections Unfunded Security Operations Administration Management $21,042,627 ` 70.02% 05 A $9,890,035 05 A $5,681,509 05 A $5.471,083 05 A $23,104,014 ` 71.58% 06 A $10,858,887 06 A $6,238,084 06 A $6,007,043 06 A $10,442,334 53.31% 07 A $575,491 $4,907,897 07 A $2,819,430 07 A $2.715,007 07 A $10,610,550 53.34% 08 A $0 $4,986,958 08 A $2,864,849 08 A $2.758,743 08 A $11,001,502 52.72% 09 B $0 $4.730,646 09 B $3.190,435 09 B $3,080,421 09 B Sheriff Criminal Unfunded Patrol Detectives Narcotics $4,373,947 14.55% 05 A $3,380,063 05 A $576,397 05 A $224,659 05 A $4,199,431 13.01% 06 A $3,137,270 06 A $685.450 06 A $242,401 06 A $4,076,661 20.81% 07 A $825,730 $2,943,590 07 A $821,836 07 A $223,987 07 A $4,189,320 21.06% 08 A $1,173,181 $3,039,035 08 A $829,895 08 A $230,860 08 A $4,152,322 19.90% 09 B $688 470 $3,083,314 09 B $734,326 09 B $244,213 09 B Precursor Detective Reserve Officer Program School Resource Officer $98,840 05 A $17,395 05 A $76,593 05 A $88,149 06 A $5,620 06 A $40,541 06 A $81,276 07 A $5.972 07 A $0 07 A $83,030 08 A $6,500 08 A $0 08 A $83.919 09 B $6,550 09 B $0 09 B Administration Salaries Sheriff Administration Unfunded and Benefits Fleet Other Services $1,784,863 5.94% 05 A $859.964 05 A $442,389 05 A $89.885 05 A $1,783,322 5.53% 06 A $856,111 06 A $508,204 06 A $31.111 06 A $2,405,648 12.28% 07 A $45,000 $840.875 07 A $650,131 07 A $539.749 07 A $2,469,672 12.42% 08 A $282,296 $997.153 08 A $645.658 08 A $462.650 08 A $2,880,805 13.81% 09 B $50 106 $946.955 0913 $837.682 09 B $697,214 09 B Facilities Animal Control Enforcement Training $189.584 05 A $141,432 05 A $61.609 05 A $188,199 06 A $140.467 06 A $59,230 06 A $186,699 07 A $127.474 07 A $60,720 07 A $188,072 08 A $124,339 08 A $51,800 08 A $209,244 09 B $137,508 09 B $52,202 09 B Sheriff Communications Unfunded Communications $626,914 2.09% 05 A $626,914 05 A $727,162 2.25% 06 A $727,162 06A $682,628 3.48% 07 A $682,628 07 A $690,867 3.47% 08 A $116,493 $690,867 08 A $769,436 3.69% 09 B $99 550 $769,436 09 B Sheriff Civil Unfunded Civil Complaints Evidence $781,089 2.60% 05 A $255,714 05 A $149,253 05 A $105,286 05 A $819,473 2.54% 06 A $308,812 06 A $155,443 06 A $100.604 06 A $658,610 3.36% 07 A $249,320 07 A $145,303 07 A $92.909 07 A $682,872 3.43% 08 A $64,073 $287,227 08 A $154,293 08 A $98,448 08 A $740,374 3.55% 09 B 44 256 $278,336 09 B $186,446 09 B $117,431 09 B Warrants Criminal History Records $107,278 05 A $51,647 05 A $111.911 05 A $102.680 06 A $49,254 06 A $102.680 06 A $83,479 07 A $39,076 07 A $48,523 07 A $100,874 08 A $42,030 08 A $0 08 A $59,388 09 B $50,109 09 B $48,664 09 B BOCC - Other Support Unfunded LEOFF Benefit Contingency /Capital Emergency Management $840,922 2.80% 05 A $550.000 05 A $212,378 05 A $45,351 05 A $1,014,426 3.14% 06 A $600,000 06 A $112.481 06 A $47,335 06 A $726,258 3.71% 07 A $600.000 07 A $30,095 07 A $59.110 07 A $611,877 3.08% 08 A $0 $500.000 08 A $10.691 08 A $60,913 08 A $676,663 - - 3.24% 09 B $0 -- $500.000 ._ -- 09 $79.781 09B $62.329 09B Law Library JC Mothball $33.193 05 A $0 05 A $33.193 06 A $221,417 06 A $37,053 07 A $0 07 A $40,273 08 A $0 08 A $34.553 09 B $0 09 B Department of Security Unfunded Security $329,399 1.10% 05 A $329,399 05 A $320,561 0.99% 06 A $320,561 06 A $310,818 1.59% 07 A $208,000 $310,818 07 A $342,747 1.72% 08 A $205,088 $342,747 08 A $345,024 1.65% 09 B $110 464 $345.024 09 B Sheriff Special Operations Unfunded ORV Search and Rescue Dive Team $271,559 0.90% 05 A $163.779 05 A $106,747 05 A $1,033 05 A $308,396 0.96% 06 A $177.651 06 A $129,253 06 A $1,492 06 A $284,716 1.45% 07 A $174.105 07 A $108,057 07 A $2,554 07 A $292,721 1.47% 08 A $10,491 $177,958 08 A $111,263 08 A $3,500 08 A $300,730 1.44% 09 B $0 $169,378 09 B $127,822 09 B $3,530 0913 *Dpeartment of Correction was moved to special revenue fund in 2007