HomeMy WebLinkAbout04/05/2016 08 2015 Year-End Budget Revenue & Expenditure ReportITEM TITLE:
SUBMITTED BY:
BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDASTATEMENT
Item No. 8.
For Meeting of: April 5, 2016
2015 Year -End Budget Revenue & Expenditure Report
Jeff Cutter, Interim City Manager
Cindy Epperson, Finance Director
SUMMARY EXPLANATION:
As previously projected, actual 2015 citywide budget performance has produced a stable
revenue position, and was effectively managed so that overall departmental expenditures have
again been restrained below authorized budget levels. The major exception was in the General
Government (i.e. tax -supported) funds which used reserves of about $2.25 million which came
from a combination of a downturn in revenues of both sales and utility taxes, coupled with
unbudgeted expenditures hitting late in the year -- i.e. a snow event requiring extensive overtime
and contractor expenses for plowing, the prior City Manager's severance package, a large
medical claim for an inmate housed at the Yakima County jail, and December medical claims
being more than double a typical month. A budget reduction plan is presented to Council in a
separate agenda item to address the potential General Government revenue shortfall in 2016 and
to begin to rebuild reserves.
In total, across all funds, the City collected $188.5 million and expended $184.2 million, netting
an increase in total reserve balances for all funds of $4.3 million.
General Government operating reserve balance is $7.2 million at the end of 2015, which is 10.2%
of 2015 revenues. This is below the recommended minimum of 16.7%, although if the Tiger Mart
property sales are considered, the percentage increases to 12.5%.
Total 2015 actual expenditure for all funds was $184.2 million compared to the 2015 amended
budget of $223.1 million -- $38.9 million or 21.1% 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 in 2016. All other funds ended 2015 with fund balances at
expected levels.
Conclusion:
Given the current state of the local and national economy, the state of the worldwide affairs and
the related potential impacts to all government entities, City management has taken a
conservative approach to budgeting revenues and continue to maintain controls on
expenditures. Even though General Government revenues fell short of budget estimates primarily
because of the drought year, other funds performed as expected. Overall, the 2015 year-end
fiscal position reflects that the City of Yakima was able to effectively manage its economic
environment. We will continue to monitor revenues and expenditures in 2016 to ensure that
General Government lives within its means.
ITEM BUDGETED:
NA
STRATEGIC PRIORITY: Public Trust and Accountability
APPROVED FOR SUBMITTAL: fi - ;' , Interim City Manager
STAFF RECOMMENDATION:
Accept Report
BOARD/COMMITTEE RECOMMENDATION:
ATTACHMENTS:
Description Upload Date
D 2015 Year End Re,enue & Expenditure 3/31/2016
Type
Cover Memo
MEMORANDUM
March 31, 2016
TO: The Honorable Mayor and
Members of the City Council
FROM: Jeff Cutter, Interim City Manager
Cindy Epperson, Director of Finance & Budget
SUBJECT: 2015 Year -End Budget Revenue & Expenditure Report
We are submitting for your review the City of Yakima's 2015 year-end actual results compared
to budgeted Revenue and Expenditure Report for all city funds. Balances shown are subject to
final adjustments made as a result of the year-end closing process, which will not be officially
concluded until the State Auditor's work is completed this summer.
Overall, Citywide 2015 budget performance has produced a stable revenue position, while
departmental expenditures have been restrained below authorized budget levels. However,
General Government operations used fund balance of about $2.2 million which came from a
combination of a downturn in revenues for both Sales and Utility taxes coupled with
unbudgeted expenditures hitting late in the year - i.e. a snow event requiring extensive
overtime and contractor expenses for plowing, the prior City Manager's severance package, and
a large medical claim for an inmate housed at the Yakima County jail. Total revenue for all
funds is $188.5 million, while total expended is $184.2 million, adding $4.3 million to citywide
reserve balances.
This report is summarized by type of fund, and reported by functional type, in the following order:
➢ Performance at a Glance - Financial Monitoring System
➢ City -Wide Overview
➢ General Fund Revenue Analysis
➢ General Fund Expenditure Analysis
➢ Other Funds Analysis
➢ Top 10 Capital Project
➢ Exhibits - Fund detail that supports the summaries:
• Exhibit I - Other Operating/Enterprise Funds
• Exhibit II - Capital Improvement Funds
• Exhibit III - Reserve and Other Funds
• Exhibit IV - Bond Redemption Funds
Yakima.6826.1.FIN_Report_4th_Qrtr_2015.docx 1 of 17
PERFORMANCE AT A GLANCE
General Fund
Revenues
Expenditures
Fund Balance
Other Funds
Top 10 Capital Projects
Exhibits
Operating/Enterprise Funds (1)
Capital Funds (1)
Reserve, Trust & Agency Funds (1)
Bond Redemption Funds (1)
STATUS PAGE
NORMAL
NORMAL
NORMAL
NORMAL
NORMAL
NORMAL
NORMAL
NORMAL
NORMAL
Legend:
Revenues exceed budget >5%, Expenditures below budget >5%
Revenues exceed budget <5%, Expenditures below budget <5%
Revenues below budget between 3-5%
Revenues below budget >5%
(1) These funds are graded on a net Revenue measurement.
2-6
2/6-7
8-9
10-11
12
13
14
15
16
POSITIVE
NORMAL
WARNING
NEGATIVE
Yakima.6826.1.FIN_Report_4th_Qrtr_2015.docx 2 of 17
CITY WIDE OVERVIEW
REVENUE COMPARISON
(Budget vs. Actual - 100% of year)
General
Parks and Recreation
Street & Traffic Operations
General Government Subtotal
Operating/Enterprise Funds
Capital Funds
G.O. Bond Redemption Funds
Utility Revenue Bond Redemption Funds
Employee Benefit Reserves
Operating Reserves
Trust and Agency Funds
Total
General
Parks and Recreation
Street & Traffic Operations
General Government Subtotal
2014
2015
Percent
Actual Rec'd
$ 58,245,180
4,501,236
4,636,264
67,382,680
68,707,753
43,785,457
2,972,439
2,146,286
11, 794, 788
3,433,827
21,126
$ 200,244,356
100.0%
100.1%
100.1%
100.0%
103.2%
75.4%
64.2%
100.0%
99.9%
102.2%
91.1%
93.5%
Amended
Budget
$ 61,333,941
5,479,455
4,718,610
71,532,006
Percent
Actual Rec'd
73,994,292
41,424,129
4,700,411
2,134,280
12,509,688
3,684,000
14,500
$ 209,993,306
EXPENDITURE COMPARISON
(Budget vs. Actual - 100% of year)
Operating/Enterprise Funds
Capital Funds
G.O. Bond Redemption Funds
Utility Revenue Bond Redemption Funds
Employee Benefit Reserves
Operating Reserves
Trust and Agency Funds
Total
2014
$ 59,421,492
5,552,839
5,292,707
70,267,038
69,153,806
26,036,173
4,467,355
2,134, 280
12,549,170
3,891,570
27,709
$188,527,101
2015
96.9%
101.3%
112.2%
98.2%
93.5%
62.9%
95.0%
100.0%
100.3%
105.6%
191.1%
89.8%
Percent Amended
Actual Spent Budget
$ 61,281,678
5,445,527
5,076,756
71,803,961
$ 59,501,582
4,553,121
4,800,608
68,855,311
65,324,114
41,326,091
3,207,820
2,292,267
13,143,628
4,107,152
12,000
$198,268,383
99.9%
99.9%
99.6%
99.9%
93.3%
57.7%
64.5%
100.0%
98.6%
91.1%
108.4%
84.1%
75,990,172
51,851,807
4,709,429
2,132,155
12,865,239
3,715,631
12,000
$ 223,080,394
Percent
Actual Spent
$ 61,410,787 100.2%
5,554,286 102.0%
5,549,823 109.3%
72,514,896 101.0%
70,831,014
16,729,680
4,464,443
2,132,154
13,238,415
4,256,921
12,000
$184,179,523
93.2%
32.3%
94.8%
100.0%
102.9%
114.6%
100.0%
82.6%
Yakima.6826.1.FIN_Report_4th_Qrtr_2015.docx 3 of 17
GENERAL GOVERNMENT REVENUE ANALYSIS
GENERAL GOVERNMENT REVENUES
2015
Revenues through 12/31 Amended Percent
2013 2014 2015 Budget Receipted Status
General Sales Tax $14,462,963 $15,461,201 $ 15,770,269 $16,020,000 98.4%
Crim. Justice Sales Tax 2,922,211 3,103,814 3,260,050 3,205,350 101.7%
Property Tax 15,696,436 16,016,029 16,444,895 16,336,390 100.7%
Utility & Franchise Taxes 14,719,274 15,848,483 15,689,913 16,783,695 93.5%
Charges for Services 6,016,642 6,684,115 8,262,371 8,154,483 101.3%
State Shared Revenue 2,701,780 2,648,633 2,849,681 2,836,880 100.5%
Other Intergovernmental 1,367,881 1,370,523 1,612,009 1,629,520 98.9%
Fines and Forfeitures 1,603,138 1,578,124 1,589,710 1,645,110 96.6%
Other Taxes 1,462,506 1,453,227 1,554,728 1,429,000 108.8%
Transfers from other Funds 1,327,401 1,413,706 1,449,559 1,450,000 100.0%
Licenses and Permits 817,750 865,334 872,276 857,900 101.7%
Other Revenue 415,338 703,152 838,526 1,157,178 72.5%
Total Revenue 63,513,320 67,146,341 70,193,987 71,505,506 98.2%
Beginning Fund Balance 10,908,094 10,883,753 9,412,400 9,412,400
Total Resources $74,421,414 $78,030,094 $ 79,606,387 $80,917,906 98.4%
NORMAL
NORMAL
NORMAL
WARNING
NORMAL
NORMAL
NORMAL
NORMAL
NORMAL
NORMAL
NORMAL
NORMAL
NORMAL
NORMAL
Sales Tax — The fourth quarter actuals dropped below the 4th quarter of 2014, so that the City ended 2015 only
2.0% ahead of 2014. The 2015 budget was set assuming a 3.6% growth rate, which seemed reasonable
assuming the prior 3 years experienced a growth rate of between 6.9 and 7.2%. The prior growth was driven
primarily by good volume, quality and market conditions for the areas agricultural commodities, and
corresponding increases in construction activity. A drought was declared in spring of 2015, and the ripple
effect of that reality in our agricultural community contributed to the sales tax reduction. The Criminal
Justice Sales Tax experienced similar results. However, this revenue is allocated among the operating and
capital funds based on need, and growth was allocated to General Fund.
Property Tax — This source grew by about 2.7% year over year, which represents a 1% increase in the
base levy, and new construction of about 1.1%, improvement in Yakima County's collection rate, and a
re -allocation from the Firefighters' Pension Fund. The property tax levy is usually slightly higher than
originally budgeted (we don't know the final levy until after the budget is adopted each year). Also, we
discount our budget estimates for uncollected amounts. For this year, we built in about a 2.5% collection
delay, however, Yakima County experienced an uncollected rate of only 2.0% at year end. This revenue
is also shared with the Firefighters' Pension Fund, and lower expenses in that fund allowed a re-
allocation into General Fund.
Utility Taxes and Franchise Fees — As noted in previous quarterly reports, this major revenue source fell
off from 2014, with the actuals coming in below 2014 actual by $158,570 , and below the 2015 budget by
$1,093,782. Contributing factors for this reduction include the mild weather conditions through the first
three months of the year, compared to severe cold weather in the prior year. The drought alert also slowed
Yakima.6826.1.FIN_Report_4th_Qrtr_2015.docx 4 of 17
water (and therefore wastewater) usage. Telephone taxes continue to decline, with the migration away
from land lines and cell phone "talking" minutes to data usage (i.e. texting) which is not currently taxable.
Charges for Services — The new Union Gap contract for fire services of $1.2 million is included in this
category which is the major reason it is up by 23.6% over the prior year. This category slightly exceeded
the 2015 budget by 1.3%.
Other Intergovernmental — The contract for School Resource Officers (SRO) make up a little less than
half of this category, and this revenue came in about $25,000 below the budget estimate because the
Yakima School District discontinued paying for a Sergeant in the new school year contract which started
in the City's 4th quarter, resulting in the 2015 actual being slightly below (1.1%) budget. Overall, this
category demonstrated an increase of 17.6% over 2014, primarily because of a full -year of the SAFER (i.e.
Firefighter hiring) grant, and the implementation of the Fly Yakima grant.
Fines and Forfeitures — With the implementation of the new indigent defense case volume directive, the
City's Prosecutor's Office started a Pre -filing Diversion Program and a Charging Unit, both designed to
reduce filed cases. These programs have been successful in lowering the caseload for indigent purposes,
but this also potentially reduces the revenue generated by tickets. After posting a 6% increase in 2013,
this category experienced a slight decline in 2014, and remained relatively flat in 2015.
Other Taxes — This category consists primarily of Business Licenses and Gambling Taxes, bolstered by
the recovering economy. There is also a bump in the Business License revenue because of the timing of
the billing - 2016 renewals went out in early December, and we received more renewals coming back to
be receipted in December than in prior years.
Transfers from Other Funds — The majority of this category consists of the three and one-half percent of
the utility tax on Water, Wastewater, and Refuse which is designated by Council for Parks and
Recreation operations. These taxes are all receipted into the General Fund, and the transfer is then made
from General Fund to Parks and Recreation. This one line approximated the 2015 budget.
Licenses and Permits —Generally, the construction segment of our local economy is recovering from the
recession. The budget was conservatively estimated so 2015 actual slightly exceeded budget. This
category is a good indicator of future construction -related sales tax.
Other Revenue — Interest earnings is the primary component, and rates remained low throughout 2015.
This is one area that has not yet recovered from the recession. The budget also included an estimate of
$400,000 for the sale of a Tiger Mart property, which was in process in 2015 but not completed until 2016,
leaving this category below budget by about that same amount.
Overall, total General Government revenue demonstrated growth of $3,047,646 or 4.5% over 2014 actual.
New revenues to the General Fund (i.e. the Union Gap fire contract and the firefighter hiring and air
service grants) account for over $1,370,000 of this increase. If these are removed from the calculation, the
increase in existing revenue was about 2.5%, which is less than anticipated - this same calculation
resulted in growth in 2014 of 4.8%. Therefore, 2015 revenues were below the amended budget by
$1,311,519 or 1.9%, contributing to the use of reserves. The 2016 estimates are being reduced to take into
consideration the lower bases on major revenues, and a proposal for maintain a balanced budget is going
to City Council under separate cover.
Yakima.6826.1.FIN_Report_4th_Qrtr_2015.docx 5 of 17
GENERAL GOVERNMENT REVENUES - By Month
2013 2014 2015
Jan $ 4,451,264 $ 4,775,515 $ 4,497,985
Feb 4,267,636 4,770,901 4,721,588
Mar 4,896,583 4,984,701 5,504,709
Apr 9,758,283 10,717,557 11,332,602
May 4,733,408 4,573,329 4,855,896
Jun 4,168,515 4,307,587 3,922,536
Jul 3,962,439 4,304,052 4,604,158
Aug 3,798,660 4,290,971 4,636,646
Sep 4,758,660 5,180,804 5,084,171
Oct 10,070,031 9,891,373 10,623,480
Nov 4,006,410 4,395,161 4,782,114
Dec 4,641,432 5,190,725 5,701,153
$63,513,321 $67,382,676 $70,267,038
$10,000,000
$7,500,000
$5,000,000
$2,500,000
$-
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
■ 2013
■ 2014
■ 2015
GENERAL GOVERNMENT REVENUES - Cumulative By Month
$60,000,000
$40,000,000
$20,000,000
2013 2014 2015
Jan $ 4,451,264 $ 4,775,515 $ 4,497,985
Feb 8,718,900 9,546,416 9,219,573
Mar 13,615,483 14,531,117 14,724,282
Apr 23,373,766 25,248,674 26,056,884
May 28,107,174 29,822,003 30,912,780
Jun 32,275,689 34,129,590 34,835,316
Jul 36,238,128 38,433,642 39,439,474
Aug 40,036,788 42,724,613 44,076,120
Sep 44,795,448 47,905,417 49,160,291
Oct 54,865,479 57,796,790 59,783,771
Nov 58,871,889 62,191,951 64,565,885
Dec 63,513,321 67,382,676 70,267,038
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Yakima.6826.1.FIN_Report_4th_Qrtr_2015.docx 6 of 17
GENERAL GOVERNMENT EXPENDITURE ANALYSIS
GENERAL GOVERNMENT EXPENDITURES
2015
Expenditures through 12/31 Amended Percent
2013 2014 2015 Budget Spent
Police $25,923,174 $26,377,103 $26,445,263 $26,868,918 98.4%
Fire 9,709,330 10,395,013 12,171,410 12,059,718 100.9%
Information Technology 2,298,015 2,849,321 3,087,092 3,062,977 100.8%
Code Administration 1,381,740 2,621,485 1,626,019 1,682,327 96.7%
Financial Services 1,461,274 1,502,372 1,532,581 1,605,263 95.5%
Utility Services 1,313,058 1,477,078 1,518,454 1,555,520 97.6%
Legal 1,247,205 1,368,033 1,467,922 1,525,072 96.3%
Municipal Court 1,330,831 1,288,302 1,346,861 1,395,989 96.5%
Police Pension 1,344,773 1,193,161 1,038,660 1,167,200 89.0%
Indigent Defense 541,656 604,480 910,981 1,000,500 91.1%
Engineering 654,156 798,763 809,739 890,530 90.9%
Economic Development 503,185 456,317 781,085 702,329 111.2%
Human Resources 442,846 527,703 649,024 682,303 95.1%
Purchasing 549,153 559,928 610,041 654,699 93.2%
Planning 517,298 452,903 535,201 581,384 92.1%
Records / City Clerk 437,577 581,099 533,284 592,904 89.9%
City Manager 366,983 386,675 504,402 389,578 129.5%
City Hall Facility 360,378 399,719 504,382 523,868 96.3%
City Council 286,511 293,237 280,678 286,735 97.9%
Intergovernmental 260,749 251,047 180,054 174,989 102.9%
State Examiner 103,729 109,905 127,429 110,000 115.8%
Transfers To Other Funds 3,019,305 5,007,938 4,750,225 4,793,875 99.1%
Position Vacancy Savings (1,025,000) 0.0%
Total General Fund 54,052,926 59,501,582 61,410,787 61,281,678 100.2% NORMAL
Status
NORMAL
NORMAL
NORMAL
NORMAL
NORMAL
NORMAL
NORMAL
NORMAL
NORMAL
NORMAL
NORMAL
NORMAL
NORMAL
NORMAL
NORMAL
NORMAL
NORMAL
NORMAL
NORMAL
NORMAL
NORMAL
NORMAL
Parks & Recreation Fund 4,261,347 4,553,121 5,554,286 5,445,527 102.0%
Street & Traffic Ops. 5,225,208 4,800,608 5,549,823 5,076,756 109.3%
Total General Government $63,539,481 $68,855,311 $72,514,896 $71,803,961 101.0%
Total General Government Fund Expenditures - 1.0% above budget
NORMAL
NORMAL
NORMAL
NORMAL
Position Vacancy Savings - Shown for fund total purposes only - no "actual" is charged here.
Even while General Government revenue were slowing, there were a series of events taking place that
created budget overages in all three Funds. Throughout the year, several unbudgeted initiatives went
forward, such as improvements to Tahoma Cemetery roads; the Main Street Program donation;
contribuitions to the Yakima and Hispanic Chambers of Commerce; extended hours ofoperation at both
Lions and Franklin pools; and outside legal support exceeding savings from a position vacancy.
However, even with these events in process, the 3rd quarter 2015 report showed total expenditures below
75% in these funds, with the overall total being 73.1% spent to date, or 1.9% below the expected 75%.
Yakima.6826.1.FIN_Report_4th_Qrtr_2015. docx
7 of 17
When the year-end estimate for 2015 expenditures were forecast as part of the 2016 budget development
process, we thought we would still end the year slightly below the expenditure budget. Unfortunately,
the City then experienced some "late hits" to expenditures including the previous City Manager's
serverance package; a snow event requiring extensive overtime and contractor expenses for plowing; a
large medical claim for an inmate housed at the Yakima County jail; and an extremely high medical
claims month in December, requiring additional contributions or "premiums" from all operating funds.
All of these combined to cause all three General Government operating funds to overspend their
budgets.
Divisions overspending their budget include:
Fire was overspent by $111,692 or 0.9% primarily because of an extremely hot summer and related active
fire season requiring excessive overtime.
Information Technology exceeded the budget by $24,115 or 0.8% primarily because the lease on the
high-speed copying machine expired, and it was much less expensive over time to purchase than lease a
replacement. The new machine cost about $58,000.
Economic Development was over their 2015 budget by $78,756 or 11.2%, primarily because the donation
of $123,333 to the Main Street Program was not added to the budget.
City Manager was overspent by $114,824 or 29.5% primarily due to the severance package for the prior
City Manager which was paid out in December.
Parks and Recreation overspent their 2015 budget by $108,759 or 2.0% primarily in the areas of staffing
for the aquatics programs due to extended hours of operation at both Franklin and Lions pools, and
additional water costs related to the extremely hot summer.
Streets and Traffic Engineering exceeded the budget by $473,067 or 9.3%. The primary reasons relate to
a snow event in December that required plowing, and costs relating to Equipment Rental maintaining an
aging fleet that was strained during the snow season.
Since General Government is about 68% staffing, events affecting total payroll have a significant impact
on budgets. Position vacancies can start being an "overage" because of the cashout of earned accrued
leave balances, but then can produce savings when the position is vacant for any length of time. Most
variances in individual divisions are the result of position vacancies. Since minor variances can cause
high percentage fluctuations in the smaller budgets, and major overages were one-time events,
designations for all individual divisions are maintained as "normal".
Yakima.6826.1.FIN_Report_4th_Qrtr_2015.docx 8 of 17
FUND BALANCES
CHANGE IN FUND BALANCE
01/01/15 12/31/15
Beginning 2015 2015 Ending
Balance Actual Rev. Actual Exp. Balance
General $ 7,873,757 $ 59,421,492 $ 61,410,787 $ 5,884,462
Parks and Recreation 530,607 5,552,839 5,554,286 529,160
Street & Traffic Operations 1,008,036 5,292,707 5,549,823 750,920
General Government Subtotal 9,412,400 70,267,038 72,514,896 7,164,542
Operating/Enterprise Funds 21,908,529 69,153,806 70,831,014 20,231,321
Capital Funds 25,956,489 26,036,173 16,729,680 35,262,982
G.O. Bond Redemption Funds 263,772 4,467,355 4,464,443 266,684
Utility Revenue Bond Redemption Funds 1,703,230 2,134,280 2,132,154 1,705,356
Employee Benefit Reserves 4,551,365 12,549,170 13,238,415 3,862,120
Operating Reserves 1,065,467 3,891,570 4,256,921 700,116
Trust and Agency Funds 632,022 27,709 12,000 647,731
Total $65,493,274 $188,527,101 $184,179,523 $69,840,852
$10,000,000
$8,000,000
$6,000,000
$4,000,000
$2,000,000
$(2,000,000)
$(4,000,000)
FUND BALANCES
Change from Prior Year
(23.9%) (7.7%)
(20.2%)
35.9% 0.3%
General Operating & Capital Reserve, Bond
Government Enterprise Funds Trust & Redemption
Funds Agency Funds
Funds
Yakima.6826.1.FIN_Report_4th_Qrtr_2015.docx 9 of 17
FUND BALANCE ANALYSIS
The 2015 actual results of expenditures and revenues netted an overall increase in total City fund
balances of $4,347,578.
General Government used about $2.25 million of its beginning fund balance, because of a combination
of a flattening of revenue growth, and overspending the expenditure budget. These conditions have
been explained earlier in this report. Overall, General Government funds ended 2015 with a balance of
$7.2 million or about 10.2% of the 2015 revenue budget. The 60 day or 16.7% target is about $11.7
million. A portion of the $4.5 million shortfall will be replenished as the Tiger Mart properties
purchased in 2014 for $1.1 million for environmental remediation are resold. Two properties are being
sold in early 2016, bringing over $800,000 back into General Fund. If the other 2 properties return similar
amounts, the shortfall would be reduced to $2.9 million, and the reserve calculation would be 12.5%.
Staff is reviewing the 2016 budget to look at places to save money, both to ensure that we stay balanced
in 2016 and to begin to rebuild reserves.
Operating and Enterprise funds reduced the ending fund balance by $1,677,208. About $1.2 million was
spent in the Public Safety Communications fund to accomplish the move of the Center. An interfund
loan of $720,000 has been committed to provide operating cash flow. Stormwater operations transferred
about half of its beginning fund balance or $700,000 to the capital fund, which still leaves the ending
balance well above the recommended minimum level. The Airport Operating fund is still making some
critical investments in deferred maintenance, and even though it added to its fund balance, it ended the
year with only $46,313 or 4.2% of the total operating budget, and is continuing to invest in its facilities
and rebuild reserves in 2016. The City has committed to an interfund loan if cash balances warrant that.
The Refuse Fund used about $50,000 and ended the year well below the recommended minimum with
only $223,000 or 3.8% of budget. A rate adjustment was approved at the end of 2015, so this fund is
expected to rebuild its reserve balance over time. All other funds in this category ended the year as
expected.
Capital Funds added a net of $9.3 million of beginning reserves, with Parks and Recreation Fund adding
about $3.5 million as we have unspent bond proceeds for the soccer complex at year end. Wastewater
added about $5.6 million to its capital reserves, as they are reviewing/designing the next major capital
improvement projects. All other major capital funds ended the year as expected.
As discussed earlier, the Employee Benefit funds had a difficult year, so that even though there were
additional contributions to the Employees' Health Benefit Reserve Fund, that balance was still reduced
by $540,000, bringing the ending balance to $1,538,335 which is still below the State Risk Manager's
minimum guidelines. The rates were increased by an average of 5.5% for 2016, to cover the cost of the
program and start to rebuild reserves. The Risk Management fund used about $293,000 of reserve
balance, with the ending balance being $663,475, although the current outstanding litigation issues will
likely need more than this amount. Rates were increased by 10% in 2016 to address the needs of this
fund. Should the settlement for the Voting Rights Act case of about $1.8 million be paid out, an
interfund loan could be made to this fund to be paid back over 3-5 years. This balance will be monitored
for adequacy throughout the year.
In the Bond Redemption funds payments were made as expected, and fund balances were virtually
unchanged. At the end of 2014 all Revenue Bonds are in compliance with required bond covenants.
Yakima.6826.1.FIN_Report_4th_Qrtr_2015.docx 10 of 17
OTHER FUNDS ANALYSIS
Operating/Enterprise Funds
Capital Funds
Reserve, Trust & Agency Funds
Bond Redemption Funds
Total Revenue
Beginning Fund Balance
Total Resources
Operating/Enterprise Funds
Capital Funds
Reserve, Trust & Agency Funds
Bond Redemption Funds
Total Expenditures
OTHER FUNDS REVENUES
Revenues through 12/31
2013
2014 2015
2015
Amended Percent
Budget Rec'd Status
$ 65,588,762
45,304,346
18,745,200
5,653,528
135,291,836
48,629,514
$183,921,350
$ 68,707,753
43, 785,457
15,249,741
5,118, 725
132,861,676
51,022,832
$183,884,508
$ 69,153,806
26,036,173
16,468,449
6,601,635
118,260,063
56,080,874
$174,340,937
OTHER FUNDS EXPENDITURES
Revenues through 12/31
2013 2014
$ 73,994,292 93.5%
41,424,129 62.9%
16,208,188 101.6%
6,834,691 96.6%
138,461,300 85.4%
56,080,874
$194,542,174 89.6%
NORMAL
NORMAL
NORMAL
NORMAL
NORMAL
NORMAL
2015
Amended Percent
2015 Budget Rec'd Status
$ 64,474,200
44,099,580
16,951,108
5,795,450
$131,320,338
$ 65,324,114
41,326,091
17, 262, 780
5,500,087
$129,413,072
$ 70,831,014
16, 729,680
17,507,336
6,596,597
$111,664,627
$ 75,990,172
51,851,807
16,592,870
6,841,584
$151,276,433
93.2%
32.3%
105.5%
96.4%
73.8%
NORMAL
NORMAL
NORMAL
NORMAL
NORMAL
Year end results generally performed as expected. Variances in capital funds are related to timing,
which is why they are getting a Normal status. Because actual revenues were close to expenditures in all
major categories, they all maintained a "normal" designation.
Funds Under Budget by more than 5%
➢ The Neighborhood Development amended budget includes both the "new" HUD grant and the
obligated carryover from prior year. The unspent funding at the end of 2015 is included in the
encumbrance ordinance, which will add about $1.9 million to their 2016 budget.
➢ In the remaining Operating/Enterprise funds, most budgets over $1 million were within 5% of
total budget. The Public Safety Communications Fund was under spent by $447,000 or 9.9%
because of position vacancies coupled with the timing of budgeted expenditures for the new
communications center. The Transit Fund is under budget by $610,000, primarily because of the
drop in fuel prices. Equipment Rental Fund is also the beneficiary of the lower fuel prices. The
Environmental Fund was under spent by $282,000 or 18.1% because of the timing of the clean-up
projects related to the Tiger Oil properties.
Yakima.6826.1.FIN_Report_4th_Qrtr_2015.docx 11 of 17
➢ Capital Fund budgets include the full project, and are not expected to be 100% completed in the
current year. In total, these funds are below budget by about $35.1 million. Of the top 10 capital
projects budgeted in 2015, only 1 was substantially completed (the LIFT area round -about at Fair
Avenue), and 9 were in various stages of completion and were either rebudgeted or will require a
non -lapsing appropriation to carry forward the project budget into 2016. About $10.1 million of
the total variance comes from the timing of Airport capital improvements. Parks Capital projects
including the SOZO soccer complex and renovation of Randall Park of about $4.4 million will be
carried forward into 2016. Wastewater has several projects which were underspent by $4.2
million, including piping in the Speedway/Race Street of $1.8 million. A listing of the top ten
budgeted projects and their year end expenses follow.
➢ Bond Redemption Funds ended the year as expected.
Funds Over Budget
➢ Reserve Funds consist primarily of Employee Benefit Funds and the Risk Management Fund.
Both the Health Benefit and Worker's Compensation self-insured funds require administrative
budget adjustments because the actual exceeded the original adopted budget. The Health Benefit
Fund spent about $737,000 more than the original budget. Risk Management continues to have
challenges, spending $541,000 more than originally estimated - the 2016 budget includes a 10%
increase in contributions from the operating funds.
• Water and Irrigation Funds both slightly exceeded their budget, because revenues came in above
budget so that the transfer to their respective capital funds were increased above the original
budget. Both of these funds still maintained an operating fund balance above the targeted
minimum.
➢ Real Estate Excise Tax 2 (REET 2) slightly exceeded budget by about $5,000 because the Public
Works Trust Fund loan related to the underpass project was finalized, and the final debt service
payment exceeded the original estimate. It should be noted that this fund transferred funds to
the Central Business District (CBD) Capital Fund to fund the preliminary engineering of the
Downtown Plaza. These funds were anticipated to be matched for this project, and the CBD
Fund has a negative fund balance of about $23,000 because of the timing of the engineering
project. The donation that was committed to fund half of the engineering project has been
postponed pending Council's decision on the plaza. If Council chooses to finance the
preliminary engineering this is the fund that would be replenished.
Yakima.6826.1.FIN_Report_4th_Qrtr_2015.docx 12 of 17
TOP 10 BUDGETED CAPITAL PROJECTS
Project Number/Description
Total Actual
2015 2015
Dept Budget Expended Funding Source
Expected
Completion
2376 Airport -Alpha Taxiway
Construction
2402 LIFT Area Roundabout
Fair Avenue
AP $10,090,644 $ 547,128 FAA Grant
Passenger Facility Charges
FY2015/16
LF 2,600,000 2,544,420 LIFT Sales tax credit, County FY 2015
SIED loan & grant, local match
74,960 Charges for Services
- Charges for Services
123,733 Charges for Services
2365 Beech St Interceptor Phase III WW 1,800,000
TBD N 1st St Revitalization - Stormwater SW 1,790,000
2335 Modifications to Water Treatment W 1,408,580
Plant Intake
2391 N 1st St Revitalization - W 1,360,000
Water Main Replacement
2390 N 1st St Revitalization Phase II
n/a Transit Bus Replacement
(on order)
n/a Fire ladder truck replacement
(on order)
2414 Randall Park improvements
Department Legend:
AP - Airport
LF - LIFT Area
WW - Wastewater Capital
SW - Stormwater
W - Water Capital
- Charges for Services
ST 1,315,000 528,342 Street Capital Reserves
TR 1,290,000
F 1,150,000
- Transit Sales Tax
- Fire Capital Reserves,
State local lease program
PK 900,000 12,152 RCO Grant, Parks Capital,
community donations
$23,704,224
ST - Street Improvement
TR - Transit
F - Fire Capital
PK - Parks Capital
FY2015/16
FY2015/16
FY 2016
FY2015/16
FY2015/16
FY 2016
FY 2016
FY 2016
Yakima.6826.1.FIN_Report_4th_Qrtr_2015.docx 13 of 17
EXHIBITS
Exhibit I
OTHER OPERATING/ENTERPRISE FUNDS
Actual Revenues Appropriations Ending
Beg Bal Amended Actual % Amended Actual % Balance
Fund 01/01/15 Budget Revenue Rec'd Budget Exp Exp'd 12/31/15
Economic Development $ 85,432 $ 222,000 $ 239,172 107.7% $ 260,766 $ 248,183 95.2% $ 76,421
Neighborhood Development 830,030 3,368,256 1,475,163 43.8% 3,373,107 1,408,139 41.7% 897,054
Community Relations 603,473 596,600 688,511 115.4% 674,823 634,153 94.0% 657,831
Cemetery 56,376 264,950 262,339 99.0% 291,709 281,178 96.4% 37,537
Emergency Services 208,306 1,290,026 1,300,116 100.8% 1,312,692 1,305,260 99.4% 203,162
Public Safety Communicatic 871,526 4,095,799 2,827,007 69.0% 4,506,862 4,059,802 90.1% (361,269)
Police Grants 174,736 484,000 500,221 103.4% 475,296 303,579 63.9% 371,378
P.B.I.A. (Parking &Bus Impr; 12,408 197,840 196,621 99.4% 202,172 199,062 98.5% 9,967
Trolley 97,884 293,624 229,616 78.2% 368,961 254,321 68.9% 73,179
Front Street Bus Impr Area 6,099 3,735 4,936 132.2% 7,000 3,221 46.0% 7,814
Cony Center (Tourist Promo 540,514 1,674,250 1,598,632 95.5% 1,620,704 1,610,885 99.4% 528,261
Capitol Theatre 27,259 405,250 405,836 100.1% 407,290 406,528 99.8% 26,567
PFD- Convention Center 421,225 816,750 832,091 101.9% 748,220 738,730 98.7% 514,586
Tourism Promotion Area 79,626 687,000 659,117 95.9% 687,000 657,921 95.8% 80,822
PFD- Capitol Theatre 176,423 618,700 630,405 101.9% 640,220 639,918 100.0% 166,910
Airport Operating 8,539 1,108,889 1,060,127 95.6% 1,102,006 1,022,353 92.8% 46,313
Stormwater Operating 1,420,735 2,151,000 2,269,200 105.5% 3,353,229 2,980,262 88.9% 709,673
Transit Operating 1,923,362 8,519,226 8,036,893 94.3% 8,615,247 8,005,242 92.9% 1,955,013
Refuse 283,037 5,834,599 5,770,978 98.9% 5,877,188 5,830,965 99.2% 223,050
Wastewater Operating 4,179,204 22,431,302 22,604,458 100.8% 21,901,186 21,886,793 99.9% 4,896,869
Water Operating 3,605,526 8,876,000 9,101,863 102.5% 9,347,579 9,385,180 100.4% 3,322,209
Irrigation 854,274 1,766,200 1,864,021 105.5% 1,795,875 1,802,284 100.4% 916,011
Equipment Rental 4,305,656 5,612,858 4,266,394 76.0% 5,697,917 4,749,623 83.4% 3,822,427
Environmental 627,146 1,560,000 1,213,867 77.8% 1,557,950 1,275,733 81.9% 565,280
Public Works Admin. 509,733 1,115,438 1,116,222 100.1% 1,165,173 1,141,699 98.0% 484,256
Total Other Operating Funds $ 21,908,529 $ 73,994,292 $ 69,153,806 93.5% $ 75,990,172 $ 70,831,014 93.2% $ 20,231,321
Yakima.6826.1.FIN_Report_4th_Qrtr_2015.docx 14 of 17
Fund
Exhibit II
CAPITAL IMPROVEMENT FUNDS
Actual Revenues Appropriations Ending
Beg Bal Amended Actual % Amended Actual % Balance
01/01/15 Budget Revenue Rec'd Budget Exp Exp'd 12/31/15
Arterial Street $ 1,367,587 $ 3,922,269 $ 1,736,663 44.3% $ 4,026,490 $ 1,822,375 45.3% $ 1,281,875
Central Bus District Capital 116,226 826,220 426,591 n/a 891,000 566,050 63.5% (23,233)
Capitol Theatre Construction 144,473 71,927 121,927 n/a 190,000 17,649 n/a 248,751
Yakima Redevelopment Area 2,668,747 1,900,000 1,124,617 59.2% 3,500,000 3,092,240 88.3% 701,124
Parks and Recreation Capital 253,224 6,750,000 6,133,009 n/a 6,962,211 2,575,977 37.0% 3,810,256
Fire Capital 1,097,851 1,963,500 159,250 8.1% 2,942,501 1,220,178 41.5% 36,923
Law and Justice Capital 574,249 554,886 600,393 108.2% 702,243 434,337 61.8% 740,305
Public Works Trust Constr 750,742 836,449 1,063,518 127.1% 1,028,084 642,784 62.5% 1,171,476
REET 2 Capital 551,438 752,000 979,070 130.2% 1,172,787 1,177,547 100.4% 352,961
Street Capital 931,057 20,811 97,581 468.9% 900,238 934,473 n/a 94,165
Convention Center Cap Impr 636,676 229,500 275,111 119.9% 549,790 326,762 59.4% 585,025
Reserve for Capital Impr 2,403,431 50,000 477,220 954.4% 3,745,000 1,263,603 33.7% 1,617,048
Airport Capital 633,020 12,776,500 709,658 5.6% 12,539,721 547,128 4.4% 795,550
Stormwater Capital 1,930,823 940,000 1,272,568 135.4% 2,025,000 158,484 7.8% 3,044,907
Transit Capital 2,309,367 1,868,507 2,209,722 118.3% 1,749,000 54,217 3.1% 4,464,872
Wastewater Capital 4,845,013 5,781,500 6,064,217 104.9% 4,690,000 488,462 10.4% 10,420,768
Water Capital 3,672,214 750,000 1,158,181 154.4% 2,670,000 473,012 17.7% 4,357,383
Irrigation Capital 1,070,351 1,430,060 1,426,877 99.8% 1,567,742 934,402 59.6% 1,562,826
Total Capital Impr Funds $ 25,956,489 $ 41,424,129 $ 26,036,173 62.9% $ 51,851,807 $ 16,729,680 32.3% $ 35,262,982
Yakima.6826.1.FIN_Report_4th_Qrtr_2015.docx 15 of 17
Fund
Exhibit III
RESERVE AND OTHER FUNDS
Actual Revenues Appropriations Ending
Beg Bal Amended Actual % Amended Actual % Balance
01/01/15 Budget Revenue Rec'd Budget Exp Exp'd 12/31/15
Employee Benefit Reserves
Unemployment Comp Res $ 435,945 $ 197,000 $ 201,962 102.5% $ 323,177 $ 196,662 60.9% $ 441,245
Employees Health Ben Res 2,077,874 9,823,850 9,943,484 101.2% 9,745,849 10,483,023 107.6% 1,538,335
Worker's Compensation Res 880,288 1,033,000 1,098,004 106.3% 1,241,131 1,242,787 100.1% 735,505
Wellness/EAP 182,715 175,000 40,000 22.9% 174,800 95,530 54.7% 127,185
Firemens' Relief and Pension 974,543 1,280,838 1,265,720 98.8% 1,380,282 1,220,413 88.4% 1,019,850
Total Employee Ben Reserve $ 4,551,365 $12,509,688 $12,549,170 100.3% $12,865,239 $13,238,415 102.9% $ 3,862,120
Operating Reserves
Capitol Theatre Reserve $ 108,568 $ - $ - n/a $ 71,927 $ 71,927 100.0% $ 36,641
Risk Management Reserve 956,899 3,684,000 3,891,570 105.6% 3,643,704 4,184,994 114.9% 663,475
Total Operating Reserve $ 1,065,467 $ 3,684,000 $ 3,891,570 105.6% $ 3,715,631 $ 4,256,921 114.6% $ 700,116
Trust and Agency Funds
Cemetery Trust
Total Other Funds
$ 632,022 $ 14,500 $ 27,709 191.1% $ 12,000 $ 12,000 100.0% $ 647,731
$ 632,022 $ 14,500 $ 27,709 191.1% $ 12,000 $ 12,000 100.0% $ 647,731
Yakima.6826.1.FIN_Report_4th_Qrtr_2015.docx 16 of 17
Fund
Exhibit IV
BOND REDEMPTIONS FUNDS
Actual Revenues Appropriations Ending
Beg Bal Amended Actual % Amended Actual % Balance
01/01/15 Budget Revenue Rec'd Budget Exp Exp'd 12/31/15
GO Bond Redemption
LID Guaranty $ 25,264 $ 50 $ 65 130.0% $ - $ - n/a $ 25,329
2002 GO Convention Center 161,795 1,016,422 1,027,846 101.1% 1,026,050 1,026,050 100.0% 163,591
2005 GO Various Bonds 8,733 3,010,189 3,010,189 100.0% 3,010,189 3,010,188 100.0% 8,734
1996 GO LTD- Conv Center 67,965 428,750 429,255 100.1% 428,190 428,190 100.0% 69,030
LID Debt Service Control 15 245,000 - 0.0% 245,000 15 0.0% -
Total G.O. Bond Redemption $ 263,772 $ 4,700,411 $ 4,467,355 95.0% $ 4,709,429 $ 4,464,443 94.8% $ 266,684
Water/Sewer Revenue Bond Redemption
1997 Water Rev Bond Res $ 358,989 $ 400 $ 400 100.0% $ $ - n/a $ 359,389
1996 Revenue Bond Reserve 149,163 700 700 100.0% - - n/a 149,863
1997 Water Revenue Bonds 6,966 237,725 237,725 100.0% 237,700 237,700 100.0% 6,991
2008 Water/Sewer Rev Bond 2 411,413 411,413 100.0% 411,413 411,413 100.0% 2
Water/Sewer Rev Bond Res 897,333 1,000 1,000 100.0% - - n/a 898,333
2003 Irrigation Bond Red 34,812 317,742 317,742 100.0% 317,742 317,741 100.0% 34,813
2003 Wastewater Bond Red 255,965 1,165,300 1,165,300 100.0% 1,165,300 1,165,300 100.0% 255,965
Total W/S Rev Bond Red $ 1,703,230 $ 2,134,280 $ 2,134,280 100.0% $ 2,132,155 $ 2,132,154 100.0% $ 1,705,356
Yakima.6826.1.FIN_Report_4th_Qrtr_2015.docx 17 of 17
Distributed at the
Meeting -
GENERAL GOVERNMENT REVENUE ANALYSIS
General Sales Tax
Crim Justice Sales Tax
Property Tax
Utility & Franchise Taxes
Charges for Services
State Shared Revenue
Other Intergovernmental
Fines and Forfeitures
Other Taxes
Transfers from other Func
Licenses and Permits
Other Revenue
Total Revenue
Beginning Fund Balance
Total Resources
GENERAL GOVERNMENT REVENUES
Revenues through 12/31
CoMec
2015
Amended Percent
2013 2014 2015 Budget Receipted Status
$ 14,462,963 $15,461,201 $ 15,770,269 $16,020,000 98 4%
2,922,211 3,103,814 3,260,050 3,205,350 101 7%
15,696,436 16,016,029 16,444,895 16,336,390 100 7%
14,719,274 15,848,483 15,689,913 16,783,695 93 5%
6,016,642 6,684,115 8,262,371 8,154,483 101 3%
2,701,780 2,648,633 2,849,681 2,836,880 100 5%
1,367,881 1,370,523 1,612,009 1,629,520 98.9%
1,603,138 1,578,124 1,589,710 1,645,110 96.6%
1,462,506 1,453,227 1,554,728 1,429,000 108.8%
1,327,401 1,413,706 1,449,559 1,450,000 100.0%
817,750 865,334 872,276 857,900 101 7%
415,338 939,491 911,577 1,183,678 77 0%
63,513,320 67,382,680 70,267,038 71,532,006 98 2%
10,908,094 10,883,753 9,412,400 9,412,400
$ 74,421,414 $ 78,266,433 $ 79,679,438 $ 80,944,406 98 4%
NORMAL
NORMAL
NORMAL
WARNING
NORMAL
NORMAL
NORMAL
NORMAL
NORMAL
NORMAL
NORMAL
NORMAL
NORMAL
NORMAL
Sales Tax — The fourth quarter actuals dropped below the 4th quarter of 2014, so that the City ended 2015 only
2 0% ahead of 2014. The 2015 budget was set assuming a 3.6% growth rate, which seemed reasonable
assuming the pnor 3 years expenenced a growth rate of between 6 9 and 7 2% The prior growth was driven
primarily by good volume, quality and market conditions for the areas agricultural commodities, and
corresponding increases in construction activity A drought was declared in spring of 2015, and the ripple
effect of that reality in our agricultural community contributed to the sales tax reduction. The Cnminal
Justice Sales Tax expenenced similar results. However, this revenue is allocated among the operating and
capital funds based on need, and growth was allocated to General Fund.
Property Tax — This source grew by about 2 7% year over year, which represents a 1% increase in the
base levy, and new construction of about 1.1%, improvement in Yakima County's collection rate, and a
re -allocation from the Firefighters' Pension Fund The property tax levy is usually slightly higher than
originally budgeted (we don't know the final levy until after the budget is adopted each year) Also, we
discount our budget estimates for uncollected amounts For this year, we built in about a 2.5% collection
delay, however, Yakima County experienced an uncollected rate of only 2.0% at year end. This revenue
is also shared with the Firefighters' Pension Fund, and lower expenses in that fund allowed a re-
allocation into General Fund
Utility Taxes and Franchise Fees — As noted in previous quarterly reports, this major revenue source fell
off from 2014, with the actuals coming in below 2014 actual by $158,570 , and below the 2015 budget by
$1,093,782 Contributing factors for this reduction include the mild weather conditions through the first
three months of the year, compared to severe cold weather m the prior year. The drought alert also slowed
water (and therefore wastewater) usage Telephone taxes continue to decline, with the migration away
from land lines and cell phone "talking" minutes to data usage (i.e. text ng) which is not currently taxable
FIN Report 4th Qrtr 2015 docx 4 of 17
Charges for Services - The new Union Gap contract for fire services of $1 2 million is included in this
category which is the major reason it is up by 23.6% over the prior year. This category slightly exceeded
the 2015 budget by 1 3%
Other Intergovernmental - The contract for School Resource Officers (SRO) make up a little less than
half of this category, and this revenue came in about $25,000 below the budget estimate because the
Yakima School District discontinued paying for a Sergeant in the new school year contract which started
in the City's 4th quarter, resulting in the 2015 actual being slightly below (1 1%) budget Overall, this
category demonstrated an increase of 17.6% over 2014, primarily because of a full -year of the SAFER (i.e.
Firefighter hiring) grant, and the implementation of the Fly Yakima grant
Fines and Forfeitures - With the implementation of the new indigent defense case volume directive, the
City's Prosecutor's Office started a Pre -filing Diversion Program and a Charging Unit, both designed to
reduce filed cases. These programs have been successful in lowering the caseload for indigent purposes,
but this also potentially reduces the revenue generated by tickets After posting a 6% increase in 2013,
this category experienced a slight decline in 2014, and remained relatively flat in 2015.
Other Taxes - This category consists primarily of Business Licenses and Gambling Taxes, bolstered by
the recovering economy. There is also a bump in the Business License revenue because of the timing of
the billing - 2016 renewals went out in early December, and we received more renewals coming back to
be receipted in December than in prior years.
Transfers from Other Funds - The majority of this category consists of the three and one-half percent of
the utility tax on Water, Wastewater, and Refuse which is designated by Council for Parks and
Recreation operations. These taxes are all receipted into the General Fund, and the transfer is then made
from General Fund to Parks and Recreation This one line approximated the 2015 budget
Licenses and Permits -Generally, the construction segment of our local economy is recovering from the
recession The budget was conservatively estimated so 2015 actual slightly exceeded budget This
category is a good indicator of future construction -related sales tax.
Other Revenue - Interest earnings is the primary component, and rates remained low throughout 2015
This is one area that has not yet recovered from the recession. The budget also included an estimate of
$400,000 for the sale of a Tiger Mart property, which was in process in 2015 but not completed until 2016,
leaving this category below budget by about that same amount.
Overall, total General Government revenue demonstrated growth of $2,884,358 or 4 3% over 2014 actual
New revenues to the General Fund (i e the Union Gap fire contract and the firefighter hiring and air
service grants) account for over $1,370,000 of this increase. If these are removed from the calculation, the
increase in existing revenue was about 2 2%, which is less than anticipated - this same calculation
resulted in growth in 2014 of 4.8%. Therefore, 2015 revenues were below the amended budget by
$1,264,968 or 1 8%, contributing to the use of reserves The 2016 estimates are being reduced to take into
consideration the lower bases on major revenues, and a proposal to maintain a balanced budget is going
to City Council under separate cover
FIN Report 4th Qrtr 2015.docx 5 of 17