Item Coversheet

BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT

Item No. 16.
For Meeting of: November 6, 2018

ITEM TITLE:Recap of the 2019 Preliminary Budget Sessions and Follow up
SUBMITTED BY:

Ana Cortez, Assistant City Manager

Steve Groom, Finance and Budget Director

SUMMARY EXPLANATION:

The 2019 Budget presented two key challenges to the Council as the policy making body for the City of Yakima:

 

  1. Fill a $786,000 General Fund 2019 deficit.
  2. Address an overall $3M shortfall including funds needed to sustain the City’s Reserve at 16.7% of expenses.
  3. In addition, during the sessions, we identified underfunding in our Workers Comp internal fund.

 

After consideration of a number of measures, the Council adopted efficiencies in the form of cuts and new revenues impacting the General Fund; based on these decisions and direction, here is an update on the state of the 2019 budget:

 

  1. $60,000 for community center capital improvements will be funded through REET 1- not General Fund
  2. $45,000 in events and other quality of life activities were eliminated from the 2019 General Fund
  3. $182,000 were eliminated from Council priorities, travel, training and miscellaneous items in the General Fund
  4. $664,000 were eliminated from salary savings in the General Fund
  5. $465,000 is expected in new revenues from various utility taxes to the General Fund

 

On October 30, 2018, the Council voted to retain ownership of the Lion’s pool.  The proposed Lion’s pool closure is therefore, not included as a savings. 

 

These Council directions produced a total of 1.4M relief to the General Fund.  These changes along with other administrative adjustments are reflected in the Updated 2019 Preliminary Budget published on November 1, 2018 which will be formally presented to Council on November 6, 2018.  

 

Per Council direction, these funds will cover the projected deficit and begin to rebuild the Reserves; as mentioned, the Workers Comp Internal Fund has a 2019 deficit of $750,000. Tentatively, staff allocated $380,000 into this fund. It is important to note that even with the 1.4M relief this year, the City still needs to address Reserve levels in 2019.

 

QUESTIONS/ANSWERS

 

Through the four study sessions held to discuss the 2019 budget, Council requested the following information from the Finance Department:

 

  1. Levy Lid Lift analysis and information
  2. Hotel Motel Tax analysis and information
  3. Public Facilities District analysis and information

 

Additional information on the debt schedule and analysis will be provided on November 13, 2018.

 

There are two policies for Council consideration:

 

Policy 1- Acceptance of Lodging Tax funded projects for 2019

Policy 3- Acceptance of the Convention Center Capital Facility Plan 2019-2022

ITEM BUDGETED:
STRATEGIC PRIORITY:Public Trust and Accountability
APPROVED FOR SUBMITTAL: City Manager
STAFF RECOMMENDATION:
Staff seeks authorization from Council to leave $380,000 in the Workers Comp fund.  Staff recommends examination of the three policies indicated above.
BOARD/COMMITTEE RECOMMENDATION:
ATTACHMENTS:
DescriptionUpload DateType
finance presentation10/31/2018Cover Memo
cc plan10/31/2018Cover Memo