HomeMy WebLinkAbout12/08/2015 15 2016 Budget AdoptionBUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No. 15.
For Meeting of. December 8, 2015
ITEM TITLE: Ordinance adopting a 2016 Budget for the City of Yakima
SUBMITTED BY: Jeff Cutter, Interim City Manager
Cindy Epperson, Director of Finance & Budget
SUMMARY EXPLANATION:
City management recently submitted the 2016 Preliminary Budget Summary and the related initiatives to City
Council and the public. This budget represents staff's projections of revenues and proposed expenditures for
the coming year.
The Preliminary Budget was first presented at a Study Session on October 27, 2015. Since that
presentation, minor corrections were made, and we have updated the numbers and explained all of the
changes in the transmittal memorandum attached to this agenda item. The budget documents and the Council
review meetings are all open and available to the public. The two major changes were a new grant award that
increased the N 1st Street project by $1.5 million, and Councils reduction in the property tax levy of
$132,500.
This is the last step in the 2016 budget process. In accordance with state law, Council is required to adopt
the budget prior to year end. Attached is a transmittal memorandum which details the changes from the
preliminary to final budget, a "Budget -in Brief' document that is a short summary of the citywide 2016
budget, the budget ordinance, and a schedule of revenues and expenditures that was updated from the
Preliminary Budget Summary to create the 2016 Final Adopted Budget.
Resolution:
Ordinance: X
Other (Specify): Transmittal Memorandum; Budget in Brief
Contract: Contract Term:
Start Date:
Item Budgeted:
Funding Source/Fiscal Impact:
Strategic Priority:
Insurance Required? No
Mail to:
Phone:
End Date:
Amount:
Public Trust and Accountability
APPROVED FOR
SUBMITTAL:
RECOMMENDATION:
Adopt the 2016 Budget for the City of Yakima
ATTACHMENTS:
Description
D 2016 BUdg.A irisainsirrdRal
D 2016 BUdg.A liirn IBir ef
D 2016 BUdg.A Or. lhnaince
D 2016 BUdg.A ScAwALAeA
City Manager
Upload Date
Type
12.1'.-3/2015
Cbmar Memo
12.1'.-3/2015
Cbmar Memo
12.1'.-3/2015
Cbmar Memo
12.1'.-3/2015
Cbmar Memo
Memorandum
Date: December 8, 2016
To: The Honorable Mayor and Members of City Council
From: Jeff Cutter, Interim City Manager
Cindy Epperson, Director of Finance and Budget
Subject: 2016 Budget Adoption
We are pleased to transmit the final 2016 City of Yakima Budget for Council's consideration and
adoption of a balanced and prudent budget of $228.1 million. The 2016 budget represents an
18.7% increase over the projected 2015 year -end budget as well as healthy ending reserves of
$55.4 million or 24.3% of budgeted expenditures and reduction in the operating property tax
rate per $1,000 of assessed value of 1.1 %.
As is customary, any changes that are made to the Preliminary Budget previously presented to
Council and the citizenry are summarized in this report, and the Final Budget is presented in
ordinance form for adoption.
CITYWIDE BUDGET UPDATE
The revised total City budget of $228.1 million represents a net increase of $1.4 million more
than the 2016 Preliminary Budget of $226.7 million. The major increases include:
➢ A grant award for the next phase of North 1s1 Street of $1.5 million.
➢ A Community Court Diversion Program of $56,000.
There was one significant reduction, as Council approved an increase in the property tax levy of
0.25 %, instead of the 1.0% included in the preliminary budget, which subtracted $132,000 from
Revenue and $114,000 from Expenditures in General Fund.
As noted, many of the changes have related revenues —total citywide revenues increased by
$1.46 million as well.
The following chart summarizes the total City Budget, including the estimated beginning
balance, revenues, expenditures and ending balance.
Page 1 of 8
CITY -WIDE BUDGET SUMMARY
General Fund
Parks and Recreation
Street & Traffic Operations
General Government Subtotal
Utilities /Other Operating
Capital Improvement
Risk Management Reserves
Employee Benefit Reserves
Trust and Agency Funds
G.O. Bond Debt Service
Utility Revenue Bond Debt Service
Total
Estimated
2016 Beg.
2016
Fund Balance
Revenue
$ 7,550,295
$ 62,650,735
478,162
5,510,965
896,671
5,059,850
8,925,128
22,099,408
27,563,285
1,341,824
4,411,105
748,711
266,178
2,019,340
$ 67,374,978
73,221,550
70,647,870
46,644,571
4,894,000
13,120,340
626,777
4,815,142
2,131,180
$ 216,101, 430
$228,105,939 $(12,004,509) $ 55,370,469
GENERAL GOVERNMENT BUDGET UPDATE
The primary change in General Government was the addition of a new Community Diversion
Program overseen by the Prosecution Division, which has the goal of connecting repeat
offenders with the services needed to resolve issues leading to crime of $56,000. Council also
approved the property tax levy at an amount below what was included in the Preliminary
Budget ($132,570). When these two things are considered, cost containment reductions of
$170,000 needed to be implemented. When added to other changes, there was a net revenue
decrease of $132,570, and a net expenditure reduction of $114,047 bringing the total from $73.3
million to $73.2 million.
Revenue
The only change in Revenue was the reduction of the property tax levy of - $132,570.
Expenditures
In addition to the Community Diversion Program, other changes in expenditures include:
➢ A reduction in the new Neighborhood Program of $30,000, tied to the timing of program
start -up.
➢ Reduction of $30,000 in external training expenses through Human Resources from
$87,000 to $57,000. The training coordinator which was added in 2014 has been trained
to teach seminars, which reduces the need to contract for external trainers.
➢ A reduction in Police overtime of $35,000. As new staff come online, the need for
overtime tied to staffing levels should be diminished.
➢ Another reduction tied to training is an across the board 10% reduction in transportation
($20,500) and related training registration budgets ($21,500). Both the training
Page 2 of 8
Estimated
2016
Use of
2016 Ending
Expenditures
Reserves
Balance
$ 62,650,615
$ 120
$ 7,550,415
5,468,072
42,893
521,055
5,090,088
(30,238)
866,433
73,208,775
12,775
8,937,903
71,846,018
(1,198,148)
20,901,260
57,246,025
(10,601,454)
16,961,832
4,851,192
42,808
1,384,632
13,398,134
(277,794)
4,133,311
617,777
9,000
757,711
4,808,964
6,178
272,356
2,129,054
2,126
2,021,466
$228,105,939 $(12,004,509) $ 55,370,469
GENERAL GOVERNMENT BUDGET UPDATE
The primary change in General Government was the addition of a new Community Diversion
Program overseen by the Prosecution Division, which has the goal of connecting repeat
offenders with the services needed to resolve issues leading to crime of $56,000. Council also
approved the property tax levy at an amount below what was included in the Preliminary
Budget ($132,570). When these two things are considered, cost containment reductions of
$170,000 needed to be implemented. When added to other changes, there was a net revenue
decrease of $132,570, and a net expenditure reduction of $114,047 bringing the total from $73.3
million to $73.2 million.
Revenue
The only change in Revenue was the reduction of the property tax levy of - $132,570.
Expenditures
In addition to the Community Diversion Program, other changes in expenditures include:
➢ A reduction in the new Neighborhood Program of $30,000, tied to the timing of program
start -up.
➢ Reduction of $30,000 in external training expenses through Human Resources from
$87,000 to $57,000. The training coordinator which was added in 2014 has been trained
to teach seminars, which reduces the need to contract for external trainers.
➢ A reduction in Police overtime of $35,000. As new staff come online, the need for
overtime tied to staffing levels should be diminished.
➢ Another reduction tied to training is an across the board 10% reduction in transportation
($20,500) and related training registration budgets ($21,500). Both the training
Page 2 of 8
coordinator, coupled with the prevalence of webinars will be relied upon to keep staff
adequately trained.
➢ In reviewing the Police Pension budget, it is appropriate to reduce that estimate by $33,000.
Both the Parks & Recreation and Streets & Traffic Engineering Budgets are unchanged from the
Preliminary.
The following table details all of the changes made in the General Government Funds:
GENERAL GOVERNMENT FUND CHANGES
Revenue
2016
Property Tax
$ (132,570)
Expenditures
Estimated
Community Court Diversion Program
56,000
Police Overtime
(35,000)
Neighborhood Program Professional Svc
(30,000)
Human Resources - External Training
(30,000)
Police Pension
(33,000)
Transport ation/Travel/Training
(42,047)
Total Changes to General Government Expenditures
$ (114,047)
Net Change $ (18,523)
General Government Summary
The following table depicts a summary of all 2016 General Government budgets, including a
revenue and expenditure projection, the difference (or the net effect on beginning cash
reserves), the estimated beginning and ending reserve balances, and the percentage of the
ending reserve in comparison to the operating budget.
General Fund
Parks & Recreation
Street & Traffic Fund
Total General Government
GENERAL GOVERNMENT BUDGET SUMMARY
2016
2016
2016
Projected
Proposed
Estimated
Revenue
Expenditures
Diff
$62,650,735
$ 62,650,615
$ 120
5,510,965
5,468,072
42,893
5,059,850
5,090,088
(30,238)
$73,221,550 $ 73,208,775 $ 12,775
2016
2016
2016
2016
Exp
Estimated
Estimated
End Bal
as % of
Beginning
Ending
as % of
Rev
Balance
Balance
Exp
0.0%
$ 7,550,295
$ 7,550,415
12.1%
-0.8%
478,162
521,055
9.5%
0.6%
896,671
866,433
17.0%
0.0%
$ 8,925,128
$ 8,937,903
12.2%
The 2016 General Government budget is virtually balanced, with the final net change adding
$12,775 to the beginning balance of $8,925,128, so that the 2016 projected ending fund balance is
$8,937,903 which represents 12.2% of the 2016 budgeted expenditures. The recommended
percentage of reserves compared to expenditures is 16.7 %, which would require a balance of
Page 3 of 8
$12.2 million, or an additional $3.3 million. The city has had some one -time expenditures in the
last couple of years, including the purchase of the Tiger Mart properties for environmental
clean -up and risk management issues including defense of the Voting Rights Act lawsuit.
Unfortunately, revenue is not coming in as estimated in 2015, also causing a use of reserves.
Management will continue to monitor operations and reserve levels.
OTHER BUDGET ADJUSTMENTS
Other budget adjustments include:
➢ Changes in Hotel /Motel tax allocation in accordance with Lodging Tax Advisory
Committee action, which subtracts $25,000 from State Fair Park, and adds $50,000 to the
Capitol Theatre Committee Management Fee. The Hotel/Motel Tax revenue was
understated in the 2015 Preliminary budget, so an additional tax of $67,560 is being
added to the Convention Center capital fund. This tax is estimated to grow by 2.5 %,
which is conservative considering the opening of the new boutique hotel in Downtown.
➢ When internal utilities reviewed the new grind and overlay project to be done in 2016, it
was determined that irrigation needed to add $25,000 to the capital budget. This fund
will about break -even with no use of reserves after this change.
➢ In Wastewater capital funds, transfers are being adjusted to move $300,000 each year out
of the construction (i.e. collection system) fund into the facility improvement fund. This
is only an accounting change, and doesn't affect the total Wastewater budget.
The following chart details all of the changes from the Preliminary Budget to this Final Budget
for all funds other than General Government.
OTHER FUNDS BUDGET SUMMARY
Description Fund
Revenue
New TIB Grant -N 1st Street Project
Reduce Hotel /Motel Tax allocation -State Fair Park
Increase Hotel /Motel Tax allocation - Capitol Theatre
Increase Hotel /Motel Tax allocation -Cony Ctr Capital
Reduce Transfer from Wastewater Operations
Increase Transfer from Wastewater Operations
Expenditures
Add to N 1st Street Project for grant award
Reduce State Fair Park -$100k to $75k
Increase Capitol Theatre Committee - $232k to $282k
Additional Irrigation Capital project
Arterial Street
Tourist Promotion (Convention Ctr op)
Capitol Theatre Operating
Convention Center Capital
Wastewater Capital (Facility)
Wastewater Construction (Collection)
Arterial Street
Tourist Promotion (Convention Ctr op)
Capitol Theatre Operating
Irrigation Capital
Amount
$1,500,000
(25,000)
50,000
67,560
300,000
(300,000)
$1,592,560
$1,500,000
(25,000)
50,000
25,000
$1,550,000
Following is a summary of the current status of the 2016 Final Budget. The updated 2016
Budget by City Functional Grouping table provides a 3 year expenditure detail by fund.
Page 4 of 8
THREE -YEAR BUDGET COMPARISON - 2016 BUDGET BY CITY FUNCTIONAL GROUPING
2014
2015
2015
2016
2016
2016
2016
2016 2016
Actual
Amended
Year -End
Proposed
vs 2015
Projected
Use of
Beginning Est. Ending
)enditures
Budget
Estimate
Expenditures
Est
Revenue
Reserves
Fund Balance Fund Balance
General Government
$ 404,528
City Management
$ 386,675
Indigent Defense
604,480
City Council
293,237
Neighborhood Groups Program
-
City Clerk /Records
581,099
Human Resources
527,703
Legal
1,368,033
Municipal Court
1,288,302
Planning
452,903
Code Administration
2,621,485
City Hall Facility
399,719
Economic Development
456,317
Police
26,377,102
Fire
10,395,013
Information Technology
2,849,321
Intergovernmental
251,047
Transfers
5,007,938
Financial Services
1,502,372
State Examiner
109,905
Police Pension
1,193,161
Utility Services
1,477,078
Purchasing
559,928
Engineering
798,763
Contingency
-
Total General Fund
59,501,583
Parks & Recreation
4,553,121
Street & Traffic Operations
4,800,608
$ 389,578
$ 404,528
$ 418,138
1,000,500
910,500
935,500
286,735
282,210
285,340
-
-
206,735
592,904
541,184
652,086
682,303
641,357
648,774
1,525,072
1,482,476
1,645,037
1,395,989
1,338,504
1,427,119
581,384
553,300
652,548
1,682,327
1,618,468
1,839,575
523,868
523,676
505,447
702,329
794,932
888,891
26,868,918
26,052,791
27,327,133
12,059,718
12,061,844
12,310,596
3,062,977
3,101,555
3,113,902
174,989
180,680
189,551
4,793,875
4,737,860
4,839,545
1,605,263
1,576,332
1,529,538
110,000
115,000
113,000
1,167,200
1,084,490
1,104,060
1,555,520
1,514,241
1,639,299
654,699
622,238
630,092
890,530
825,915
833,710
(1,025,000)
-
(1,085,000)
61,281,676
60,964,079
62,650,615
5,445,527
5,420,027
5,468,072
5,076,756
4,973,765
5,090,088
Total General Government Funds $ 68,855,312 I $ 71,803,959 $ 71,357,871 i $ 73,208,775
3.4%
2.7%
1.1%
n/a
20.5%
1.2%
11.0%
6.6%
17.9%
13.7%
(3.5 %)
11.8%
4.9%
2.1%
0.4%
4.9%
2.1%
(3.0 %)
(1.7 %)
1.8%
8.3%
1.3%
0.9%
n/a
2.8% $
62,650,735
$ 120 $
7,550,295
$ 7,550,415
0.9%
5,510,965
42,893
478,162
521,055
2.3%
5,059,850
(30,238)
896,671
866,433
2.6% $
73,221,550
$ 12,775 $
8,925,128
$ 8,937,903
Page 5 of 8
Other Operating(Enterprise
Economic Development
Community Development
Community Relations
Cemetery
Emergency Services
Public Safety Communications
Police Grants
Downtown Improvement District
Trolley (Yakima Interurban Lines)
Front St Business Impr Area
Tourist Promotion (Conv Ctr)
Capitol Theatre
PFD Revenue - Convention Center
Tourist Promotion Area
PFD Revenue - Capitol Theatre
Airport Operating Fund
Stormwater Operating
Transit
Refuse
Wastewater Operating
Water Operating
Irrigation Operating
Equipment Rental
Environmental Fund
Public Works Administration
Total Other Operating(Enterprise
2014
Actual
)enditures
$ 430,690
1,449,200
597,230
255,443
1,291,290
2,855,158
369,476
229,831
34,721
5,216
1,432,809
341,978
636,991
641,422
530,939
1,072,890
2,319,147
7,789,855
5,860,242
20,352,602
9,020,711
1,985,333
4,621,919
77,807
1,121,214
$ 65,324,117
M
2015 2015
Amended Year -End
Budeet Estimate
260,766
3,373,107
674,823
291,709
1,312,692
4,506,862
475,296
202,172
368,961
7,000
1,620,704
407,290
748,220
687,000
640,220
1,102,006
3,353,229
8,615,247
5,877,188
21,901,186
9,347,579
1,795,875
5,697,917
1,557,950
1,165,173
$ 260,394
3,327,699
649,590
288,911
1,305,601
4,051,457
310,036
202,172
271,400
7,000
1,609,828
406,819
748,220
667,000
640,208
1,017,848
2,929,588
7,927,046
5,861,246
21,355,700
9,054,915
1,784,591
4,691,447
1,444,450
1,160, 246
2016
Preliminary
Expenditures
$ 198,071
1,431,769
618,913
273,542
1,407,117
3,555,870
369,716
208,993
147,046
6,500
1,694,510
420,497
727,720
687,000
630,883
1,128,985
2,638,104
8,368,765
6,425,158
22,540,390
9,373,857
1,802,149
4,705,298
1,247,950
1,237,215
$ 75,990,174 $ 71,973,410 $ 71,846,018
2016 2016
vs 2015 Projected
Est Revenue
(23.9 %) $
183,000
(57.0 %)
1,421,193
(4.7 %)
666,600
(5.3 %)
262,950
7.8%
1,326,026
(12.2 %)
3,499,468
19.2%
416,000
3.4%
205,340
(45.8 %)
73,624
(7.1 %)
3,735
5.3%
1,683,800
3.4%
414,700
(2.7 %)
828,750
3.0%
687,000
(1.5 %)
624,800
n/a
1,134,929
(9.9 %)
2,151,000
5.6%
8,701,402
9.6%
6,595,262
5.5%
22,102,484
3.5%
8,816,000
1.0%
1,803,540
0.3%
4,722,942
(13.6 %)
1,180,000
6.6%
1,143,324
(0.2 %) $
70,647,870
2016 2016 2016
Use of Beginning Est. Ending
Reserves Fund Balance Fund Balance
$ (15,071) $
71,407
(10,576)
819,295
47,687
620,484
(10,592)
47,315
(81,091)
202,331
(56,402)
440,295
46,284
280,700
(3,653)
8,077
(73,422)
73,909
(2,765)
2,834
(10,710)
604,936
(5,797)
15,690
101,030
493,755
-
79,626
(6,083)
154,915
5,944
51,521
(487,104)
692,147
332,637
2,850,603
170,104
249,708
(437,906)
4,935,754
(557,857)
3,215,186
1,391
873,230
17,644
4,290,067
(67,950)
560,696
(93,891)
464,926
$ (1,198,148) $
22,099,408
56,336
808,719
668,171
36,723
121,240
383,893
326,984
4,424
487
69
594,226
9,893
594,785
79,626
148,832
57,465
205,043
3,183,239
419,812
4,497,848
2,657,329
874,622
4,307,711
492,746
371,034
$ 20,901,260
Page 6 of 8
2014
2015
2015
2016
2016
2016
Actual
Amended
Year -End
Preliminary
vs 2015
Projected
)enditures
Budget
Estimate
Expenditures
Est
Revenue
Capital Improvement
226.3%
2,826,220
(54,780)
Arterial Street
$ 2,954,476
$ 4,026,490
$ 3,102,258
C.B.D. Capital Improvement
119,783
891,000
883,000
Capitol Theatre Construction
-
190,000
190,000
Yakima Rev Development Area
1,228,911
3,500,000
3,155,000
Parks & Recreation Capital
82,237
6,962,211
5,830,489
Fire Capital
176,082
2,942,501
1,255,787
Law & Justice Capital
929,480
702,243
617,704
Public Works Trust Construction
513,639
1,028,084
683,635
REET 2 Capital Construction
772,787
1,172,787
1,177,547
Street Capital Fund
16,653,978
900,238
999,242
Convention Center Capital Impr
288,012
549,790
405,179
Cum. Reserve for Capital Impr
5,979,376
3,745,000
1,545,000
Airport Capital
1,072,241
12,539,721
747,563
Stormwater Capital
87,619
2,025,000
225,000
Transit Capital Reserve
1,874,766
1,749,000
193,391
Wastewater Facilities Capital Rsv
107,043
600,000
250,000
Wastewater Construction
920,384
3,280,000
170,000
Water Capital
4,169,101
2,670,000
1,276,578
Wastewater Capital
2,211,238
810,000
550,000
Irrigation Capital
1,184,938
1,567,742
1,467,742
$ 51,851,807
$ 24,725,115
Total Capital Improvement $ 41,326,092
Contingency /Operating Reserves
FRS /Capitol Theatre Reserve $
Risk Management
Total Contingency /Operating Rsys $
2016 2016 2016
Use of Beginning Est. Ending
Reserves Fund Balance Fund Balance
$ 10,737,025 246.1% $ 10,397,841 $ (339,184) $ 1,698,325 $ 1,359,141
2,881,000
226.3%
2,826,220
(54,780)
65,366
10,586
70,000
n/a
66,641
(3,359)
76,400
73,041
1,500,000
(52.5 %)
1,000,000
(500,000)
1,413,747
913,747
1,569,000
(73.1 %)
508,400
(1,060,600)
1,172,735
112,135
2,239,976
78.4%
2,242,410
2,434
245,129
247,563
693,000
12.2%
479,350
(213,650)
514,941
301,291
999,885
46.3%
802,000
(197,885)
879,107
681,222
978,250
(16.9 %)
802,000
(176,250)
185,891
9,641
5,000,000
n/a
5,095,306
95,306
12,626
107,932
385,000
(5.0 %)
360,400
(24,600)
500,997
476,397
765,000
(50.5 %)
300,000
(465,000)
1,335,652
870,652
11,645,247
1457.8%
11,325,568
(319,679)
798,672
478,993
2,400,000
966.7%
700,000
(1,700,000)
2,848,391
1,148,391
4,175,100
2058.9%
3,849,875
(325,225)
3,448,444
3,123,219
700,000
180.0%
700,000
-
1,802,515
1,802,515
5,710,000
3258.8%
500,000
(5,210,000)
6,486,576
1,276,576
2,050,000
60.6%
1,000,000
(1,050,000)
3,565,125
2,515,125
1,380,000
150.9%
2,301,500
921,500
(520,021)
401,479
1,367,542
(6.8 %)
1,387,060
19,518
1,032,669
1,052,187
$ 57,246,025 131.5% $ 46,644,571 $ (10,601,454) $ 27,563,285 $ 16,961,832
71,927 $ 71,927 $ 71,927 $ 36,641
4,035,225 3,643,704 3,951,716 4,814,551
4,107,152 I $ 3,715,631 $ 4,023,643 $ 4,851,192
(49.1 %) $
21.8% _
20.6% $
- $ (36,641) $ 36,641 $ -
4,894,000 79,449 1,305,183 1,384,632
4,894,000 $ 42,808 $ 1,341,824 $ 1,384,632
Page 7 of 8
Employee Benefit Reserves
Unemployment Compensation
Employees Health Benefit
Workers' Compensation
Wellness /EAP Fund
Firemen's Relief & Pension
Total Employee Benefit Reserves
Trust and Agency Funds
Cemetery Trust
YakCorps Agency Fund
Total Trust and Agency Funds
Debt Service
L.I.D. Guaranty
PFD Debt Service
General Obligation Bonds
L.I.D. Debt Service
Water - Irrigation /Sewer Bonds
Total Debt Service
Total City Budget
2014
2015
2015
Actual
Amended
Year -End
)enditures
Budget
Estimate
2016 2016 2016 2016 2016 2016
Preliminary vs 2015 Projected Use of Beginning Est. Ending
3xvenditures Est Revenue Reserves Fund Balance Fund Balance
$ 155,141
$ 323,177 $ 182,977
$ 227,351
10,254,339
9,745,849 9,860,071
10,388,338
1,345,292
1,241,131 1,302,774
1,311,017
147,213
174,800 121,800
121,800
1,241,643
1,380,282 1,262,907
$ 12,865,238 $ 12,730,528
1,349,628
$ 13,143,629
$ 13,398,134
24.3%
$ 197,000 $
(30,351) $
449,968 $
419,617
5.4%
10,407,500
19,162
2,106,803
2,125,965
0.6%
1,069,780
(241,237)
666,214
424,977
0.0%
121,800
-
182,715
182,715
6.9%
1,324,260
(25,368)
1,005,404
980,036
5.2% $ 13,120,340 $ (277,794) $ 4,411,105 $ 4,133,311
$ 12,000
$
12,000 $
12,000
$
12,000
0.0% $
21,000 $
9,000 $ 647,022 $
656,022
663,046
165,669
605,777
605,777
3,740,989
605,777
0.0%
605,777
- 101,689
101,689
$ 675,046
$
617,777 $
617,777
$
617,777
0.0% $
626,777 $
9,000 $ 748,711 $
757,711
1,015,650
2,085,427
106,743
2,292,268
$ 5,500,087
$198,931,435
1,026,050 1,026,050
3,438,379 3,438,379
245,000 75,000
2,132,155 2,132,155
$ 6,841,584 $ 6,671,584
$ 223,686,169 $192,099,928
$ -
n/a $
50 $
50 $
25,314 $
25,364
1,024,025
(0.2 %)
1,026,103
2,078
163,591
165,669
3,736,939
8.7%
3,740,989
4,050
77,258
81,308
48,000
(36.0 %)
48,000
-
15
15
2,129,054
(0.1 %)
2,131,180
2,126
2,019,340
2,021,466
$ 6,938,018
4.0% $
6,946,322 $
8,304 $
2,285,518 $
2,293,822
$ 228,105,939 18.7% $ 216,101,430 $ (12,004,509) $ 67,374,978 $ 55,370,469
Page 8 of 8
cm of Takima
2016 BUDGET INBRIEF
The Budget In Brief provides a high -level overview of the final 2016 budget, along with significant
issues that are anticipated to have a material impact in 2016.
Even as the local economy is gradually bouncing back to pre- recession levels, we are still struggling
with underlying conditions that has Yakima's unemployment and poverty rates higher than the state
and national averages. Given these economic challenges, the 2016 budget is balanced within available
resources without new taxes, and is responsive to the City Council's strategic priorities and the
community's needs. To that end, this budget is driven by the results of the 2015 Citizen Survey that
expressed a strong need to address the City's public safety challenges and deferred infrastructure
backlog, and to improve the appearance of the community and stimulate economic development.
2015 VS. 2016 BUDGET COMPARISON AND 2016 BUDGET OVERVIEW
The chart below compares the 2015 year -end estimate to the 2016 budget in summary format.
2015 ESTIMATE / 2016 BUDGET COMPARISON
General
Parks and Recreation
Street & Traffic Operations
General Government Subtotal
Utilities /Other Operating
Capital Improvement
Risk Management Reserves
Employee Benefit Reserves
Trust and Agency Funds
G.O. Bond Debt Service
Utility Rev Bond Debt Service
Total
Revenues
2015
Year -End
2016
%
Estimate
Budget
Chng
$ 60,640,617
$ 62,650,735
3.3%
5,367,582
5,510,965
2.7%
4,862,400
5,059,850
4.1%
70,870,599
73,221,550
3.3%
72,164,285
70,647,870
(2.1 %)
26,331,913
46,644,571
77.1%
4,300,000
4,894,000
13.8%
12,590,268
13,120,340
4.2%
654,333
626,777
(4.2 %)
4,541,835
4,815,142
6.0%
2,134,280
2,131,180
(0.1 %)
$193,587,513
$ 216,101,430
11.6%
Expenditures
2015
Year -End
2016
%
Estimate
Budget
Chng
$ 60,964,079
$ 62,650,615
2.8%
5,420,027
5,468,072
0.9%
4,973,765
5,090,088
2.3%
71,357,871
73,208,775
2.6%
71,973,410
71,846,018
(0.2 %)
24,725,115
57,246,025
131.5%
4,023,643
4,851,192
20.6%
12,730,528
13,398,134
5.2%
617,777
617,777
0.0%
4,539,429
4,808,964
5.9%
2,132,155
2,129,054
(0.1 %)
$192,099,928 $228,105,939 18.7%
The estimated revenues for all funds, including beginning balances, are $283.5 million. This represents an
increase of $22.5 million or 11.6% more than the 2015 Year -End Estimate of $261.0 million.
The expenditure budget for FY 2016 for all funds is $228.1 million. This is $36.0 million or 18.7% more than
the 2015 Year -End Estimate of $192.1 million. Most of this increase ($32.5 million) is in the area of capital
improvement.
Budget in Brief -1
2016 BUDGET SUMMARY
Estimated
Estimated
2016 Beg. 2016 2016
Use of 2016 Ending
Fund Balance Revenue Expenditures
Reserves Balance
General Fund $ 7,550,295 $ 62,650,735 $ 62,650,615
$ 120 $ 7,550,415
Parks and Recreation 478,162 5,510,965 5,468,072
42,893 521,055
Street & Traffic Operations 896,671 5,059,850 5,090,088
(30,238) 866,433
General Government Subtotal 8,925,128 73,221,550 73,208,775
12,775 8,937,903
Utilities /Other Operating 22,099,408 70,647,870 71,846,018
(1,198,148) 20,901,260
Capital Improvement 27,563,285 46,644,571 57,246,025
(10,601,454) 16,961,832
Risk Management Reserves 1,341,824 4,894,000 4,851,192
42,808 1,384,632
Employee Benefit Reserves 4,411,105 13,120,340 13,398,134
(277,794) 4,133,311
Trust and Agency Funds 748,711 626,777 617,777
9,000 757,711
G.O. Bond Debt Service 266,178 4,815,142 4,808,964
6,178 272,356
Utility Revenue Bond Debt Service 2,019,340 2,131,180 2,129,054
2,126 2,021,466
Total $ 67,374,978 $216,101,430 $228,105,939
$(12,004,509) $ 55,370,469
➢ The use of reserves of $12.0 million is programmed to be primarily out of capital funds, which is
typical as reserves are built over time to be used in major projects.
Wastewater, Stormwater, and
Water utilities are in the middle of major capital programs, and Parks Capital is using the first
$750,000 set aside in 2015.
➢ The operating funds are set with conservative revenue estimates —even
though many of them are
budgeted to use reserves, it is likely that future revenue will exceed
budget, bringing them closer to
"break- even" by next year -end.
Some features of the Fiscal Year 2016 budget that should be noted are:
Revenues
➢ The general operating property tax levy for FY 2016 is estimated to be $3.0882 per $1,000 of
assessed value, a decrease of $0.0357 or 1.1% below the current rate.
➢ Refuse is implementing a rate increase that will average about 13.2% in total, ranging from $0.98
to $2.00 per account per month. This will be the first rate increase to support the basic
operations of this utility since 2008.
➢ Water, Wastewater, Stormwater, and Irrigation utilities are not budgeting rate adjustments in
2016. Recent rate studies indicate increases are needed for all but Irrigation, but management is
proposing to postpone any rate adjustments until 2017. These utilities will be reviewing rates
again as they prepare for the Capital Facilities Plan component of the Comprehensive Plan
which is required to be completed in 2017.
Personnel
➢ 767.52 total proposed full -time (FTE) positions in all funds for Fiscal Year 2016.
➢ A net increase of 6.85 FTE's from 2015 -5 in General Government; 1.85 in other funds
➢ Refer to the General Staffing section in the 2016 Preliminary Budget document for more
information.
Budget in Brief - 2
Capital Improvements
The City will invest $58.8 million in FY 2016 to address its capital needs. This includes all capital funds
and the equipment replacement portion of the Equipment Rental fund.
FINANCIAL CONDITION
Despite several years of downward pressure on revenues mainly due to tax relief legislation and the
economic recession, Yakima is emerging from the recession and is continuing to maintain fiscal
stability.
Bond Ratings
The City is proud of affirming an "AA-" rating from Standard and Poor's on its water and wastewater
utilities. Also, in 2014 Standard and Poor's upgraded the City s rating on its general obligation bonds from
"A +" to "AA - ". Careful preparation by the staff, combined with good audits, high level of fiscal
responsibility and comprehensive written financial policies resulted in this upgrade. A better rating means
the City s general obligation bonds are considered to be of high investment quality, which translates into
lower interest rates and corresponding lower interest payments.
General Government Revenues/Balancing
Ad valorem taxes - To ensure its long -term financial success, the City is proposing to set its operating
property tax levy at rate of $3.0882 per $1,000 of assessed value in Fiscal Year 2016. The State law allows the
City to impose the lesser of the rate of inflation (as measured by the Implicit Price Deflator (IPD)) or 1%
above the prior year levy, plus levies for new construction and annexations. The City estimates to collect
$308,000 or 1.75% more in the FY 2016 levy than it did in FY 2015, made up of 1.5% for new construction
and the IPD increase of 0.25 %.
The 2016 General Government incremental revenue growth of $2.35 million is based on the following:
➢ 0.25% inflation adjustment in property tax levy plus an estimate $277,000
of 1.5% new construction. The combined general operating and debt
service property tax levy will decrease by 1.1% from 2015 tax levy.
➢ 4.0% growth in sales tax (2012 -14 over 6% annual growth, 2015 about 4 %). $640,000
➢ Utility tax growth of 2.9 %. $456,000
➢ Proposed sale of two Tiger Mart sites. $400,000
We have balanced the 2016 General Government Fund budget using the following strategies:
➢ Continuing the 2% vacancy rate offset
Personnel costs are budgeted at 98% to account for a minimum 2%
position turnover /vacancy
➢ Reduction in Overtime - combination of adding 3 Firefighter positions,
and other cost containment in this category
$1,085,000
➢ Reduced Fuel Prices $145,000
Budget in Brief - 3
MAJOR POLICY CONSIDERATIONS
The 2016 budget includes the following investments in the community's key priorities:
Strategic Priority Budgeted Item(s)
Public Safety
Police Legacy CAD & Records System
$ 150,000
$1,581,000
Increase for Dangerous Buildings Abatement (offset by revenue)
-
Transfer Animal Control to Police
-
Digital Cameras for Patrol Division
15,000
Replacement Program for Police Motorcycles
65,000
Taser Replacement
20,000
Add 3 Firefighters (Increase offset by reduction in Overtime)
264,000
Increase Technical Rescue Training Budget
10,000
Station 95 Annex Outbuilding Project
257,000
Station 95 Sleeping Quarters
75,000
Purchase a Water Tender for Fire Suppression
125,000
Snow Removal Equipment at the Airport
600,000
Economic Development
Economic Development Community Support
$ 443,000
$1,968,000
Potential Convention Center Expansion Development Plan
25,000
Cascade Mill Redevelopment Project
1,500,000
Built Environment
Public Works Telephone System Upgrade
$ 67,000
$34,951,050
Virtual Server Cluster- Information Technology
125,000
Add One Part -Time Temporary to the Permit Center
11,000
City Hall Facility Projects
600,000
Vehicle Security Gates at Yakima Air Terminal
700,000
Airport Taxiway Bravo Design
225,000
Arterial Street Capital Projects - including N 1st St
9,744,050
Road Improvements
5,000,000
Wastewater Capital Projects
7,790,000
Water Capital Projects
2,050,000
Irrigation Capital Projects
1,025,000
Stormwater Capital Projects
2,400,000
Purchase 7 Each Replacement Buses, Vans and Paratransit Vehicles
3,982,000
Passenger Shelters for the Transit system
80,000
Passenger Counters for Transit Fixed Route and Dial -a -Ride
120,000
Equipment Rental Shop Upgrades
45,000
Parks Capital Projects
987,000
Partnership Development
Neighborhood Partnerships Program
$ 237,000
$3,083,500
Visitors Center Operation Increase
6,500
Tourism Promotion Professional Services
9,000
Sports Commission Allocation
7,500
Convention Center Management Fee
19,800
Humane Society Contract Increase
3,700
Yakima Central Plaza Development
2,800,000
Public Trust & Accountability
PW Security Upgrade
$ 40,000
$211,500
Add Two Transit positions (Maint Crew Leader /Field Supervisor)
139,000
Refuse Electronic Routing System
25,000
Refuse Rate Increase
(767,000)
Mechanic Training
7,500
Budget in Brief - 4
2016 EXPENDITURE BUDGET BY FUND
($228.1 MILLION)
Risk Trust and
Management Agency Funds
Capital Reserves Employee $0.6
P $49 0.3%
.
Improvement Benefit
$57.2 2.1% Reserves
25.1% $13.4 G.O. Bond Debt
5.9% Service
$4.8
2.1%
Utility Revenue
Bond Debt
Service
$2.1
0.9%
General Fund
$60.8
Utilities /Other 27.5%
Ope rating
$71.8
31.5%
Street &Traffic Parks and
Operations Recreation
$5.1 $5.5
2.2% 2.4%
2016 RESOURCES BUDGET BY FUND
($283.5 MILLION)
Risk Trust and
Management Agency Funds
Reserves
Employe e $5.1
Capital $6.2 Benefit 0.5%
Improvement 2 ' 2 � Reserves
$74.2 $175 G.O. Bond Debt
26.2% 6.2% Service
$5.1
1.8%
Utility Revenue
Bond Debt
Service
$4.2
1.5%
General Fund
Utilitie s /Othe $70.2
Ope rating 24.8%
$92.7
32.7%
Parks and
Street &Traffic Recreation
Resources = $6.0
Ope rations
Revenues plus 2.1%
Beginning Fund Balance $6.0
2.1%
Budget in Brief - 5
ORDINANCE NO. 2015 -
AN ORDINANCE adopting a budget for the City of Yakima, Washington, for the
year 2016; and making appropriations for estimated
expenditures.
WHEREAS, on or before the 27th day of October, 2015, a Preliminary Budget
Summary for the City of Yakima for the year 2016 was duly filed with the Director of
Finance and City Clerk of the City of Yakima and submitted to the Yakima City Council,
all in accordance with applicable laws, and
WHEREAS, subsequent to October 27, 2015, the City Council held hearings on
the budget and on parts thereof, and on November 17, 2015 and on December 1, 2015,
the City Council held its formal public hearing on the budget all in accordance with
applicable laws, and
WHEREAS, subsequent to its formal public hearing, the City Council made
adjustments and changes to the budget as the Council deemed necessary or proper and
determined the allowance in each item, department, classification and fund, all as set
forth in the final budget document attached hereto, all in accordance with applicable
laws, now, therefore,
BE IT ORDAINED BY THE CITY OF YAKIMA:
Section 1. The budget for the City of Yakima, Washington, for the year 2016 is
hereby adopted in its final form and content as set forth in the budget document entitled
"City of Yakima, Annual Budget - 2016," which is attached hereto as Schedule A and
incorporated by reference herein. There is hereby appropriated for expenditure during
the year 2016 the aggregate amounts listed on the attached Schedule A for each
separate fund of the City, all in accordance with Title 3 of the City of Yakima Municipal
Code. Pursuant to Article II, Section 9 of the City Charter, the City Manager shall
administer the expenditure of all funds appropriated herein, and the City Manager is
authorized to take all necessary and prudent actions to implement the City Council's
expenditure directives and budget appropriations.
Section 2. The City Clerk is directed to transmit a certified copy of the budget
hereby adopted to the Division of Municipal Corporations in the Office of the State
Auditor and to the Association of Washington Cities.
Section 3. This ordinance is one required to be made by the laws of the State of
Washington, and shall be in full force and effect on January 1, 2016, upon its passage
and publication as provided by law.
PASSED BY THE CITY COUNCIL, signed and approved this 8th day of
December, 2015.
Micah Cawley, Mayor
ATTEST:
City Clerk
Publication Date:
Effective Date:
City of Yakima
Annual Budget - 2016
Schedule A
Summary of Appropriations by Fund
Fund/Description
2016
Projected
Resources
2016
Budget
Appropriation
% of
Budget
000
General Fund
$ 70,201,030
$ 62,650,615
27.5%
123
Economic Development
254,407
198,071
0.1%
124
Community Development
2,240,488
1,431,769
0.6%
125
Community Relations
1,287,084
618,913
0.3%
131
Parks & Recreation
5,989,127
5,468,072
2.4%
141
Streets & Traffic Operations
5,956,521
5,090,088
2.2%
142
Arterial Street
12,096,166
10,737,025
4.7%
144
Cemetery
310,265
273,542
0.1%
150
Emergency Services
1,528,357
1,407,117
0.6%
151
Public Safety Communications
3,939,763
3,555,870
1.6%
152
Police Grants
696,700
369,716
0.2%
161
Downtown Improvement District
213,417
208,993
0.1%
162
Trolley (Yakima Interurban Lines)
147,533
147,046
0.1%
163
Front St Business Impr Area
6,569
6,500
0.0%
170
Tourist Promotion (Cony Ctr)
2,288,736
1,694,510
0.7%
171
Capitol Theatre
430,390
420,497
0.2%
172
PFD Revenue - Convention Center
1,322,505
727,720
0.3%
173
Tourist Promotion Area
766,626
687,000
0.3%
174
PFD Revenue - Capitol Theatre
779,715
630,883
0.3%
198
FRS /Capitol Theatre Reserve
36,641
36,641
0.0%
221
LID. Guaranty
25,364
-
0.0%
272
PFD Debt Service
1,189,694
1,024,025
0.4%
281
General Obligation Bonds
3,320,972
3,312,239
1.5%
283
1994 CJ /I -82 LT GO Bonds
-
-
0.0%
284
1995 UT GO Bonds
-
-
0.0%
287
1996 LT GO Convention Center Bonds
497,275
424,700
0.2%
289
LID. Debt Service
48,015
48,000
0.0%
321
CBD Capital Improvement
2,891,586
2,881,000
1.3%
322
Capitol Theatre Construction
143,041
70,000
0.0%
323
Yakima Rev Development Area
2,413,747
1,500,000
0.7%
331
Parks & Recreation Capital
1,681,135
1,569,000
0.7%
332
Fire Capital
2,487,539
2,239,976
1.0%
333
Law & Justice Capital
994,291
693,000
0.3%
342
Public Works Trust Construction
1,681,107
999,885
0.4%
343
REET 2 Capital Construction
987,891
978,250
0.4%
344
Street Capital Fund
5,107,932
5,000,000
2.2%
370
Convention Center Capital Impr
861,397
385,000
0.2%
392
Cum. Reserve for Capital Impr
1,635,652
765,000
0.3%
City of Yakima
Annual Budget - 2016
Schedule A
Summary of Appropriations by Fund
Fund/Description
2016
Projected
Resources
2016
Budget
Appropriation
% of
Budget
421
Airport Operating Fund
1,186,450
1,128,985
0.5%
422
Airport Capital Fund
12,124,240
11,645,247
5.1%
441
Stormwater Operating
2,843,147
2,638,104
1.2%
442
Stormwater Capital
3,548,391
2,400,000
1.1%
462
Transit
11,552,005
8,368,765
3.7%
464
Transit Capital Fund
7,298,319
4,175,100
1.8%
471
Refuse
6,844,970
6,425,158
2.8%
472
Wastewater Facilities Capital Rsv
2,502,515
700,000
0.3%
473
Wastewater Operating
27,038,238
22,540,390
9.9%
474
Water Operating
12,031,186
9,373,857
4.1%
475
Irrigation Operating
2,676,770
1,802,149
0.8%
476
Wastewater Construction
6,986,576
5,710,000
2.5%
477
Water Capital
4,565,125
2,050,000
0.9%
478
Wastewater Capital
1,781,479
1,380,000
0.6%
479
Irrigation Capital
2,419,729
1,367,542
0.6%
481
1998 Water Revenue Bond Reserve
359,789
-
0.0%
483
1996 Wastewater Revenue Bond Reserve
150,563
-
0.0%
484
1991 Water /Wastewater Revenue Bond Red
105,113
-
0.0%
486
2008 Water Bonds
241,716
234,700
0.1%
488
2008 Wastewater Bonds
411,815
411,813
0.2%
489
1991 Water /Wastewater Revenue Bond Red
899,333
-
0.0%
491
2004 Irrigation Bonds
352,354
317,541
0.1%
493
2003 Wastewater Bonds
1,420,965
1,165,000
0.5%
494
Revenue Bond
208,871
-
0.0%
512
Unemployment Compensation
646,968
227,351
0.1%
513
Employees Health Benefit
12,514,303
10,388,338
4.6%
514
Workers' Compensation
1,735,994
1,311,017
0.6%
515
Risk Management
6,199,183
4,814,551
2.1%
516
Wellness /EAP
304,515
121,800
0.1%
551
Equipment Rental
9,013,009
4,705,298
2.1%
555
Environmental Fund
1,740,696
1,247,950
0.5%
560
Public Works Administration
1,608,250
1,237,215
0.5%
612
Firemen's Relief & Pension
2,329,664
1,349,628
0.6%
632
YakCorps
707,466
605,777
0.3%
710
Cemetery Trust
668,022
12,000
0.0%
$ 283,476,408
$ 228,105,939
100.0%