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HomeMy WebLinkAbout2021-2022 Preliminary Biennial Budget Table of Contents  COMMUNITY PROFILE ..................................................................................................... 1  PASCO CITY COUNCIL ...................................................................................................... 3  PASCO LEADERSHIP TEAM ................................................................................................ 5  READER’S GUIDE ............................................................................................................... 7  CITY COUNCIL BIENNIUM GOALS ................................................................................... 9  BUDGET MESSAGE........................................................................................................... 13  2019-2020 Overview ............................................................................................................... 14  2021-2022 Big Picture............................................................................................................... 17  General Fund ............................................................................................................................ 21  Utility Services ......................................................................................................................... 24  Ambulance Services ................................................................................................................. 25  Summary ................................................................................................................................. 26  BUDGET OVERVIEW ....................................................................................................... 29  Budget Priorities .......................................................................................................................... 29  Budget Purpose ........................................................................................................................... 30  Basis of Budgeting ........................................................................................................................ 31  Budget Process ............................................................................................................................ 32  Budget Calendar ......................................................................................................................... 34  Fund Descriptions........................................................................................................................ 35  Fund Structure ............................................................................................................................. 38  General Fund ............................................................................................................................... 41  Ambulance Services Fund ............................................................................................................ 43  Utility Fund ................................................................................................................................. 44  Budgeted Expenditures by Administrative Structure ..................................................................... 47  Cost Center Budget ..................................................................................................................... 50  FINANCIAL POLICIES ....................................................................................................... 51  Summary and Purpose of Financial Policies ................................................................................... 51  Financial Core Values and Goals ................................................................................................... 51  FINANCIAL DATA ............................................................................................................ 57  Financial Analysis ........................................................................................................................ 57  Revenue – All Funds ................................................................................................................ 57  Expenditure – All Funds ............................................................................................................ 61  Revenue Source Analysis for Each Major Fund Category .............................................................. 64  General Fund Revenues ........................................................................................................... 64  Special Revenue Funds ............................................................................................................ 68  Internal Service Funds .............................................................................................................. 70  Construction Funds .................................................................................................................. 71  Enterprise Funds ...................................................................................................................... 73  Other Funds ............................................................................................................................ 75  Debt ........................................................................................................................................... 75  Debt Capacity ......................................................................................................................... 77  Enterprise Funds – Working Capital ............................................................................................ 79  Fund Balance Trends .................................................................................................................... 81  2021-2022 Budget Summary – All Funds .......................................................................... 84  Changes to Fund Balance ............................................................................................................ 86  Comparative Budget Summary – General Fund ........................................................................... 90  2021-2022 Budgeted Revenue by Type – All Funds ..................................................................... 94  2021-2022 Budgeted Expenditures by Object – All Funds ............................................................ 98  Staffing Trends ........................................................................................................................... 102  CITY OF PASCO ............................................................................................................. 105  DEPARTMENTS UNDER GENERAL FUND ...................................................................... 107  City Council ............................................................................................................................... 108  Municipal Court .......................................................................................................................... 110  Mission.................................................................................................................................... 112  Major Functions ...................................................................................................................... 112  2018 Key Accomplishments ..................................................................................................... 112  Budget Narrative ..................................................................................................................... 113  2019-2020 Goals ..................................................................................................................... 113  City Manager .............................................................................................................................. 116  Mission.................................................................................................................................... 119  Major Functions ...................................................................................................................... 119  2019-2020 Key Accomplishments ............................................................................................ 119  Budget Narrative .................................................................................................................... 120  2021-2022 Goals .................................................................................................................... 120  Human Resources ...................................................................................................................... 122  Mission................................................................................................................................... 124  Major Functions ..................................................................................................................... 124  2019-2020 Key Accomplishments ........................................................................................... 124  Budget Narrative .................................................................................................................... 125  2021-2022 Goals .................................................................................................................... 125  Administrative & Community Services ........................................................................................ 126  Mission ................................................................................................................................... 130  Major Functions ..................................................................................................................... 130  2019-2020 Key Accomplishments ........................................................................................... 131  Budget Narrative .................................................................................................................... 133  2020-2021 Goals .................................................................................................................... 135  Community & Economic Development ...................................................................................... 138  Mission ................................................................................................................................... 140  Major Functions ..................................................................................................................... 140  2019-2020 Key Accomplishments ........................................................................................... 140  Budget Narrative .................................................................................................................... 141  2021-2022 Goals .................................................................................................................... 142  Finance ...................................................................................................................................... 144  Mission ................................................................................................................................... 146  Major Functions ..................................................................................................................... 146  2019-2020 Key Accomplishments ........................................................................................... 146  Budget Narrative .................................................................................................................... 147  2021-2022 Goals .................................................................................................................... 148  Police ......................................................................................................................................... 152  Mission ................................................................................................................................... 155  Major Functions ..................................................................................................................... 155  2019-2020 Key Accomplishments ........................................................................................... 155  Budget Narrative .................................................................................................................... 156  2020-2021 Goals .................................................................................................................... 157  Fire ............................................................................................................................................ 158  Mission ................................................................................................................................... 160  Major Functions ..................................................................................................................... 160  2019-2020 Key Accomplishments ........................................................................................... 160  Budget Narrative .................................................................................................................... 161  2021-2022 Goals .................................................................................................................... 162  Public Works – Engineering ........................................................................................................ 164  Mission ................................................................................................................................... 166  Major Functions ..................................................................................................................... 166  2019-2020 Key Accomplishments ........................................................................................... 166  Budget Narrative .................................................................................................................... 169  2021-2022 Goals ..................................................................................................................... 171  SPECIAL REVENUE FUNDS ............................................................................................. 173  Ambulance Service Fund ............................................................................................................ 174  Mission................................................................................................................................... 176  Major Functions ..................................................................................................................... 176  2019-2020 Key Accomplishments ........................................................................................... 176  Budget Narrative .................................................................................................................... 176  2021-2022 Goals .................................................................................................................... 176  Public Works – Streets ................................................................................................................ 178  Arterial Fund.............................................................................................................................. 180  I-182 Impact Fund ....................................................................................................................... 181  Street Overlay Fund ................................................................................................................... 182  Community Development Block Grant ...................................................................................... 184  Economic Development Fund .................................................................................................... 188  Martin Luther King Center Fund ................................................................................................. 190  Cemetery Fund .......................................................................................................................... 192  Senior Services ........................................................................................................................... 194  Boulevard Maintenance Fund .................................................................................................... 196  Athletics Fund ............................................................................................................................ 197  Golf Fund .................................................................................................................................. 198  Multi-Modal Fund ..................................................................................................................... 199  School Impact Fund .................................................................................................................. 200  Marina Fund .............................................................................................................................. 201  Lodging Fund ............................................................................................................................ 202  Litter Abatement Fund .............................................................................................................. 202  Revolving Abatement Fund....................................................................................................... 203  TRAC Fund ............................................................................................................................... 204  Park Development Fund ........................................................................................................... 205  Capital Improvement (REET) Fund ........................................................................................... 206  Stadium/Convention Center Fund ............................................................................................. 207  Hotel/Motel Excise Tax Fund .................................................................................................... 208  ENTERPRISE FUND ....................................................................................................... 209  Public Works - Utilities ............................................................................................................... 210  Mission................................................................................................................................... 214  Major Functions ..................................................................................................................... 214  2019-2020 Key Accomplishments ........................................................................................... 214  Budget Narrative .................................................................................................................... 216  2021-2022 Goals .................................................................................................................... 216  INTERNAL SERVICE FUNDS ........................................................................................... 219  Equipment Rental ...................................................................................................................... 220  Medical Service Fund ................................................................................................................ 224  Central Stores Fund ................................................................................................................... 226  ALL OTHER FUNDS ....................................................................................................... 227  General CIP Fund ...................................................................................................................... 228  Cemetery Endowment Fund ...................................................................................................... 230  Old Fire Pension Fund ................................................................................................................ 231  Old Fire OPEB Fund ................................................................................................................... 231  CAPITAL PLAN AND BUDGETING ................................................................................. 233  2021-2026 Capital Improvement Plan ....................................................................................... 235  2021-2022 Proposed Capital Budget ......................................................................................... 242  APPENDICES .................................................................................................................. 245  Glossary of Budget Terms .......................................................................................................... 247  Acronym Key ............................................................................................................................ 253  Revenue Manual ....................................................................................................................... 257  Summary- General Fund Revenue Sources by Category .......................................................... 259  Fee Schedule ............................................................................................................................. 283  Salary Schedules ........................................................................................................................ 299  White Paper on Banked Capacity .............................................................................................. 305  Statistics ..................................................................................................................................... 314      1  COMMUNITY PROFILE   2    3  PASCO CITY COUNCIL   4    5  PASCO LEADERSHIP TEAM   6    7  READER’S GUIDE Below are the major sections of this budget document and descriptions of the content to maximize reader comprehension. Budget Message – The Budget Message is a letter from the City Manager to the City Council that communicates the priorities and key issues facing the City for the 2021-2022 biennium. Though not intended as a comprehensive summary of the budget in total, the message attempts to convey the assumptions used to estimate biennial revenues and expenditures and highlights major challenges for the City and the actions taken by Staff to address those challenges. Significant changes in priorities from previous years’ budget are also discussed. Adopted Budget – This is the Council adopted resolution establishing the legal appropriations at the fund level for each fund for the 2021-2022 Biennium. Budget Overview – This section includes a discussion of the City’s budget purpose, the basis of budgeting, the budget process, along with a budget calendar and the components of the budget. Fund Structure – This section presents information on fund structure, types of funds and administrative oversight by fund. A matrix of funds by cost centers is included. Financial Policies – This section includes a summary of the City’s various financial policies and discusses the impact of those policies on the preparation of the budget. Financial Data – Financial Analysis – A thorough analysis of historical, current and budgeted revenues and expenses is included. Graphs and tables present this information summarized for all City funds and then again grouped by fund types, presented by revenue source and expenditure type. There is a discussion of major revenue sources, significant trends and the underlying assumptions that supported our budget estimates. Background information is included for debt capacity, changes in fund balances and working capital. City Level Budget – This section contains an overview of the budget, budget summary for all funds and a staffing summary. Departmental Fund Level Budget – This section contains the following information for each of the City’s major departments and funds: 1) organizational chart, 2) budget summary, 3) personnel summary, and 4) goals and objectives. Capital Plan & Budget – This section presents a condensed version of the recently adopted Six- Year Capital Improvement Plan (CIP) with projects summarized by category and by revenue source. These projects are budgeted in the biennial budget. As the development of capital projects is a dynamic process dependent on funding, staffing, timing and coordination with other efforts and prioritization, not every project in the adopted CIP can be included in the biennial CIP budget; projects may be refined or phased, and occasionally circumstances arise   8  that warrant inclusion of a new project. A comprehensive version of the City’s Adopted Capital Improvement Plan is available online or at the City Clerk’s office. NEW! – Starting with the 2021-2022 biennium, the City will proceed with the carryover process where funds for capital projects are carried over from year to year when there is variation from the biennium budget, rather than including estimates of carryover in the biennium budget. This will result in an additional process of capital carryover in early 2021, but will also provide clarity to the capital budgets and allow for Council to inquire and act upon budget variations for the City’s biggest investment after its people. Appendices – Included in this section is the City’s Glossary of Terms, Acronym Key, Revenue Manual, Fee Schedule, Salary Schedules, White Paper on Banked Capacity and Statistics.   9  CITY COUNCIL BIENNIUM GOALS On each biennium coinciding with a Council election, the newly elected City Council establishes specific goals designed to guide the work of the City. Following two community forums, community surveys, and ongoing formal and informal input from the public and governmental partners, the Council conducted a goal-setting retreat in August 2020. The goals, which grew out of the retreat, were subsequently adopted by the Council and are as follows: QUALITY OF LIFE Promote a high quality of life through quality programs, services and appropriate investment and re-investment in community infrastructure by: o Using Community Development Block Grant (CDBG) and other public and private capital to revitalize older neighborhoods and safe routes to essential services. o Continuing efforts toward designing, siting, programming needs, and site selection for a community center and pursuing acquisition of land for future community park. o Developing Phase I of the A Street Sporting Complex and continue efforts to provide additional soccer and sports fields. o Coordinating with the Pasco Public Facilities District to develop a public education campaign, financial analysis and prepare a ballot measure concerning the development of a regional aquatic facility for consideration by the people. o Completing construction of a new animal control facility. o Ongoing efforts to improve efficiency and effectiveness of public resources in the delivery of municipal services, programs, and long-term maintenance and viability of public facilities. o Collaborating with the Inclusion, Diversity and Equity Commission and community leaders to enhance engagement efforts and organizational cultural competency. o Updating design standards for the development of new neighborhoods and re- development to promote greater neighborhood cohesion through design elements, e.g.: walkability, aesthetics, sustainability, and community gathering spaces. o Updating Parks and Facilities Comprehensive Plan to include: public facilities inventory, needs assessment, level of service, and centers evaluation. o Teaming with local and regional partners to develop a Housing Action Plan with a focus on strategies that emphasize affordable housing. FINANCIAL SUSTAINABILITY Enhance the long-term financial viability, value and service levels of services and programs, including: o Regular evaluation of services and programs to confirm importance to community, adequacy, and cost-benefit. o Continuation of cost of service and recovery targets in evaluating City services. o Instilling and promoting an organizational culture of customer service across all business lines.   10  o Updating policies relating to urbanization of the unincorporated islands to assure consistency with long-range planning, community safety, and fiscal sustainability. COMMUNITY SAFETY Preserve past improvements and promote future gains by: o Developing a Comprehensive Police Strategic Master Plan through a transparent process to evaluate future service levels of the department to assure sustainability, public safety, and crime control over the next 5-10 years. o Collaborating with regional and community partners to evaluate and implement strategies to reduce the incidence of homelessness. o Leveraging and expanding partnerships to maintain and enhance behavioral health services to community members in crisis being assisted by police and fire. o Continuing efforts to improve police and community relations. o Working to achieve/maintain target fire response times through operational improvements and long-range planning of facilities and staffing. o Focus on a long-term goal of sustaining the Washington State Ratings Bureau Class 3 community rating. o Leveraging infrastructure database of sidewalks, Streetlights and pavement conditions along with evaluating policies and methods to address needs and inequities. COMMUNITY TRANSPORTATION NETWORK Promote a highly functional multi-modal transportation network through: o Commencement and completion of construction of the Lewis Street Overpass project. o Continued emphasis on improvements in Road 68/I-182/Burden Blvd. corridor to improve operation and safety. o Data-driven pro-active neighborhood traffic calming efforts. o Continued collaboration with Ben Franklin Transit to enhance mobility and access. o Completion of a Transportation System Master Plan and utilization of its recommendations to develop policies, regulations, programs, and projects that provide for greater connectivity, strategic investment, mobility, multi-modal systems, accessibility, efficiency and safety. ECONOMIC VITALITY Promote and encourage economic vitality by supporting: o Downtown revitalization efforts of Downtown Pasco Development Authority (DPDA), post-COVID restart, and City initiatives such as Downtown Master Plan process and sign code modifications. o The construction of Peanuts Park and Farmers Market and continued efforts to pursue Streetscape and gateway upgrades. o The completion of the Comprehensive Land Use Plan Update and Broadmoor Master Plan efforts, adoption of Urban Growth Area expansion alternative, implementation   11  of adopted long-range planning efforts with appropriate analysis and adoption of planning actions including: zoning code changes, phased sign code update, and development regulations and standards. o Increased efforts to promote the community as a desirable place for commercial and industrial development by promoting small business outreach and assistance, predictability in project review, and excellent customer service. o Partnerships and encouragement of Department of Natural Resources (DNR) to facilitate development of the remaining state-owned properties at Road 68/I-182. o Continued coordination with the Port of Pasco to complete and implement a waterfront-zoning plan and provide for public infrastructure. o Active partnerships in the planning and development of strategies to promote tourism and deployment of assets to spur economic activity. o In concert with community partners, development of a comprehensive economic development plan. COMMUNITY IDENTITY Identify opportunities to enhance community identity, cohesion and image through: o Continued efforts of community surveying through traditional methods and the application of new technologies. o Providing opportunities for community engagement through boards, commissions, volunteer opportunities, social media, forums, and other outlets. o Enhanced inter-agency and constituent coordination developed during the pandemic. o Continued efforts of the community identity/image enhancement campaign to include promotion of community and organizational successes. o Enhanced participation and support of cultural events occurring within the community. Support of the Arts and Culture Commission in promoting unity and the celebration of diversity through art and culture programs.   12    13  BUDGET MESSAGE   14    Honorable Mayor and City Council, Pasco residents, business owners/operators, and interested parties: I am pleased to present you the City of Pasco’s preliminary biennial budget for the years 2021- 2022. As required by State law, revenues and expenses in this budget are balanced in all funds. Staff developed this budget in furtherance of the adopted City Council Goals for 2020-2021. Further, the preliminary 2021-2022 budget presents a strategic and integrated plan for the allocation of public resources toward a variety of City programs, activities, and projects necessary to promote the physical security of the community, enhance the quality of life for residents, support businesses, promote equitable public investment in the form of capital improvements and strategic planning, and promote private investment. 2019-2020 OVERVIEW Pasco is a city coming into its own. A once small Central Washington town along the Columbia River, Pasco has experienced rapid growth over a prolonged period of time that has transformed the City into a dynamic and vibrant community of over 77,000 people. Today Pasco is a regional hub of commerce with a diverse population, quickly rising education levels and household incomes. As part of this transformation, Pasco has experienced a changing demographic, infrastructure challenges, increased demands for services in all sectors: social, education, emergency response, utilities, transportation, etc. The elected leadership of the City have been responsive and strategic throughout these enormous changes, which has led to an impressive level of stability. Today those long-term strategies, as reflected in the City’s strategic investments in critical infrastructure, technology, people, quality of life and the community in general, are bearing fruit. 2019 A detailed review was presented at the Mid-Biennium Budget Adjustment; we are honored to provide the following highlights:  Promotion of Deputy Police Chief Ken Roske to Police Chief, the department’s first internal promotion to chief in over half a century.  Adopted development design standards updating and standardizing development requirements, clarifying processes and simplifying navigation of the process for community members and property owners wishing to improve their properties.  Awarded Government Finance Officer Association’s Distinguished Budget Presentation Awards Program for the City’s first Biennial Budget.  Completed the Limited Tax General Obligation Bond issuance for Fire Stations 83 and 84, Animal Shelter, and GESA Stadium improvements.  Chapel Hill Boulevard LID – Execution of LID and construction completed. City Manager  (509) 545-3404  Fax (509) 545-3403 P.O. Box 293  525 N. Third Ave.  Pasco, WA 99301   15   Initiation and furtherance of several long-range planning efforts; Comprehensive Land Use Plan, Urban Growth Area analysis, Utility Plan Updates and execution on numerous capital projects. 2020 The year began routinely, with the installation of a new City Councilmember, Zahra Roach, evaluation of the results of the biennial community survey, and a series of productive community listening sessions in preparation for the Council’s biennial goal-setting retreat. In March however, like communities across our nation, the City swiftly began responding to the global pandemic with ensuring the safety and wellbeing of community members and employees being the top priority. At the same time, City Council and staff were adapting how essential services were to be delivered in a remote environment as they managed challenging circumstances along with changing, and sometimes conflicting, federal and state regulations. In a year of lockdowns, regulatory confusion, limitations on methods of public engagement, and uncertainty, Council and staff have worked diligently to advance goals, initiatives, comprehensive plans, and strategic investments ahead. 2020 saw numerous noteworthy successes, which advanced long-time City Council Goals:  Completed Urban Growth Area analysis and development of the Comprehensive Land Use Plan.  Established newly enacted Arts and Culture Commission.  Achieved Police Department reaccreditation at the national level; Commission on the Accreditation of Law Enforcement Agencies (CALEA), and state level; Washington Association of Sheriffs and Police Chiefs (WASPC) Police.  Developed and are now approaching functionality of community engagement tool, “AskPasco”, to cultivate meaningful, effective and efficient interactions between the City’s residents, businesses, and visitors and the City.  Evaluated Animal Control Shelter design alternatives in partnership with City of Kennewick and City of Richland.  Completed Phase I of the sign code revision, which focused on the regulation structure and reading characteristics to provide a document that is much more intuitive and user friendly.  COVID Pandemic o The Tri-Cities enjoys a long-standing tradition of collaboration among local governments within the region, and that foundation has been key to the high level of collaboration and coordinated pandemic response efforts of the cities, counties, Health District, Ports and Non-Government Organizations (NGO) from throughout the region. o Coordinated strategies among elected and senior staff first on the pandemic response and then on reopening communities. o High profile Public Service Announcements by elected leaders and other targeted safety campaigns. o Development, issuance and promulgation of multiple emergency orders in response to community needs or newly enacted federal mandates associated with the Coronavirus Aid, Relief, and Economic Security Act (CARES).   16   COVID Programs o Implemented CDBG Coronavirus Aid, Relief, and Economic Security (CARES) business assistance grants program. o Implemented CARES utility assistance program. o Supported small business reopening with locally procured re-open packs. o Provided Halloween safety kits to encourage healthy celebrations. o Collaborated with Health District to stand-up and oversee a COVID testing site.  Capital Projects Completed or Significant Progress Made o Completed design and secured gap funding for Lewis Street Overpass, anticipated bid award January 2021. o Completed Process Water Reuse Facility (PWRF) Irrigation Pump Station (IPS) Replacement. o Completed design of 9th and Washington, Road 36, and Maitland lift stations. o Completed construction of Pearl Street Lift Station Improvements. o Completed construction of Columbia East Pump Station. o Completed construction of Foster Wells Force Main. o Completed assessment of chlorine safety at Butterfield Water Treatment Plant. o Completed construction of Water Main Replacement at alley east of Wehe Ave. o Completed signage and striping improvements at Road 68 & Burden Boulevard. o Coordinated with property owners, designed, and bid NW Sewer LID, bid award anticipated December 2020. o Completed design of Peanuts Park and Farmers Market Restoration, bid award anticipated December 2020. o Completed City Hall Remodel Phase 2. o Completed remodel of Fire Station 81 and Fire Station 82. o Completed design and coordination of Fire Alerting System. o Completed design and awarded bid of Fire Training Restroom Facility, construction completion estimated early 2021. o Completed design and awarded bid for construction of Fire Station 84 and Administration, estimated completion August 2021. o Construction of replacement Fire Station 83, estimated completion December 2020. o Completed GESA Stadium improvements. o Completed design of Chapel Hill Park. o Initiated design efforts for Kurtzman Restroom Replacement, Sylvester Park Sporting Courts, and Schlagel Park/Boat Basin Improvements. In January, the City conducted its Community Survey, and later multiple Community Forums, which in part guided the City Council in establishing the following overarching 2020-2021 goals which set the priorities and guide this biennial budget:   17  Quality of Life Financial Sustainabilit y Community Safety Community Transportatio n Network Economic Vitality Community Identity Promote a high-quality of life through quality programs, services and appropriate investment and reinvestment in community infrastructure. Enhance the long-term financial viability, value, and service levels of services and programs. Preserve past improvement s and promote future gains. Promote a highly- functional multi-modal transportation network. Promote and encourag e economic vitality. Identify opportunitie s to enhance community identity, cohesion, and image. 2021-2022 BIG PICTURE Over the 2021-2022 biennium, this budget proposal focuses on the implementation of several long-range plans and projects aimed at furthering the City Council’s adopted goals. Many of the City’s long-term efforts such as the Comprehensive Land Use Plan Update, Broadmoor Area Master Plan, Information Service Strategic Plan, and Transportation System Master Plan, will be completed early in the biennium, while the Parks and Facilities Comprehensive Plan will commence in 2021. Other, more targeted planning efforts, will continue to advance: Waterfront-Zoning District, Phased Sign Code Updates, Housing Action Plan, Economic Development Plan and others will begin; Comprehensive Police Strategic Plan, Downtown Master Plan and Sign Code Update. To be successful over the long-term, the need to identify and acquire alternative funding sources for major capital projects or service initiatives is imperative. Operationally, to position the organization toward sustainability, a continued focus on enhancing efficiencies through process design and technology application will be required. What follows is a high-level overview of each City Council goal and what is proposed in the preliminary budget to advance them. Quality of Life As Council did in the adoption of the 2020-2021 goals, the 2021-2022 preliminary budget places significant investment of our programs, services, and facilities, which will further the promotion of a high quality of life. This high-priority goal places significant resources toward the advancement of projects, initiatives, inter-agency collaboration, and strategic planning processes including:  Completion of the Animal Control Shelter through partnership with the City of Kennewick and City of Richland.  Initiate a robust public engagement process to identify and advance Community Center needs.   18   Update to the Parks and Facilities Comprehensive Plan to include equity assessment, identify areas for revitalization and opportunities for community gathering spaces, and provision of recreational services.  Furtherance of public education efforts and financial analysis for a regional aquatics center ballot measure through the Pasco Public Facilities District.  Support of the efforts of the Inclusion, Diversity and Equity Commission in the execution of their limited charter.  Identify and implement additional organizational cultural competency training of City staff and officials.  Support of the newly formed Arts and Culture Commission and their involvement in public art and arts and culture related initiatives.  Development of a Housing Action Plan.  Completion of Phase I of A Street Sporting Complex.  Highland Park Restroom/Concession Building construction.  NW Community Park land purchase. Financial Sustainability A thorough understanding of City-owned assets, programs, and services is central to the City’s financial sustainability. Considerable effort has been expended over the past few years to analyze these items and make that information available to the City Council and public in a transparent, understandable format. Through diligent planning, City staff will work to provide policy options for Council designed to enhance the long-term financial viability, value and service levels that currently exist over this biennium. Additionally, City staff will continue to instill and promote an organizational culture of customer service through all business lines.  Develop comprehensive Customer Service Program.  TRAKiT software replacement  Utility Billing System replacement  Complete long-term financial plan for General Fund.  Consideration of new, and updated, impact fees to assure the impacts of growth are appropriately mitigated. Community Safety To ensure police and fire services continue to meet the needs of the growing community, the following have been included in the 2021-2022 preliminary budget:  Completion of Comprehensive Police Strategic Master Plan through a vigorous community process.  Expansion of homelessness and behavioral health services through; enhanced contract for Resource Navigator program, identify sustainable funding opportunities to continue Mobile Outreach Professionals program, and first-responder training.  Long-term planning and efforts to maintain Class 3 Community Fire rating.  Assessment and planning to address infrastructure needs and inequities.  Police implementation of Spidr-Tech software to enhance one-on-one communications between officers and the public, track metrics and evaluate service levels.   19  Community Transportation Network This biennium the City will see the completion of several long-standing transportation projects and supporting the City Council’s desire to improve connectivity, mobility, multi- modal systems, accessibility, and safety through the following:  Completion of the Transportation System Master Plan.  Complete widening of Road 68 south of I-182.  Complete Wrigley Drive extension.  Road 68 / I-182 / Burden Blvd. Improvements.  Completion of Argent Rd. Improvements.  Coordination with Benton-Franklin Transit System Improvements. Economic Vitality The preliminary biennial budget provides for significant investment to increase Pasco’s economic and community development in key areas of the City, in particular, revitalizing Downtown and the development of the Broadmoor Area.  Initiate Downtown Master Plan and Sign Code Updates.  Completion of Broadmoor Master Plan.  Construction of the catalytic Peanuts Park and Farmer’s Market.  Recruit Economic Development Manager to promote Pasco as a place for commercial and industrial development, tourism, and work collaboratively with community partners towards a comprehensive economic development plan.  Operation of the one-stop Permit Center.  Complete Phase II of sign code update.  Coordination with Port of Pasco on the waterfront-zoning plan and Riemann Industrial Park initiatives. Community Identity Additionally, City staff will continue to capitalize on inter-agency partnerships strengthened through pandemic response and:  Develop Public Art Policy in coordination with newly established Arts and Culture Commission.  Public implementation of community engagement tool, “AskPasco”.  Create boards and commission onboarding process.  Enhanced support of community events highlighting the diversity of Pasco. Staffing In a strategic effort to address level of service deficiencies several positions have been added in recent years, most of which are in the Fire and Police Departments. Similarly, resources have been allocated toward technology upgrades; software and equipment aimed at allowing for greater transparency and efficiency. While this strategy has made a positive impact on the provision of public safety services, the additional staffing and technology has impacted the organization’s internal ability to support such services. Further, the successful implementation of an aggressive capital improvement plan will require additional areas additional staffing. Accordingly, the preliminary budget recommends the following additional FTEs:   20  Application Specialist This additional FTE will provide capacity necessary to enhance end user support, training, and proficiency of the City’s existing applications as well as near term implementation of enterprise applications. Senior Engineer A full-time senior level engineer will provide necessary project management capacity to help achieve the significant infrastructure investment required for growth in Pasco. Funding for this position will come primarily from projects and utilities. Civil Engineer This FTE will provide junior-level engineering services to provide additional capacity in the planning, design and management of capital projects. Funding for this position will come from utilities. Deputy Court Clerk Funded by electronic traffic enforcement revenue, this additional general fund FTE will provide capacity necessary for increased caseload at Municipal Court generated from program implementation. Instrument Technician This position will provide necessary capacity for the City’s ongoing upgrade, expansion and management of Supervisory Control and Data Acquisition (SCADA) technologies. Funding for this position will come from utilities. Introduction of Carry-Overs The preliminary budget introduces the accounting practice of carryovers to the City budgeting process. The technical accounting definition of a carryover is an amount that moved from an earlier accounting period to a later one. The City has historically not utilized this common and recommended accounting method for functions that truly could benefit from it – such as capital projects. Project schedules shift for multiple reasons, permitting, funding, property acquisition, etc., and the implementation of a carry-over system will provide a continuation of funding to a project as schedules vary. In terms of Council oversight, all funds expended during the current biennium would still require Council authorization. The carry-over process simply provides a process by which Council can authorize carry-over funding of a project(s) into the new biennium. This practice adds a layer of sophistication to the budget process and provides clarity with respect to the true capital budget for the given biennium, and avoids the confusion created by including projects that have been approved in prior budgets (like a Lewis Street Overpass project) into the new biennium, which overstates the City’s capital budget. The City plans to implement a project accounting system by the first quarter of 2021 to achieve this goal of clear, transparent, and accurate project accounting. The 2021-2022 proposed biennium budget is prepared with this accounting concept/process in place.   21  Balancing General Fund The General Fund is expected to reduce in fund balance by $4.1M by the end of the 2021- 2022 biennium. This is due primarily to the anticipated draw down of most of its 2019 LTGO bonds by the end of the biennium as a result of most of the projects funded through the bonds are completed or well underway. The City has benefitted from the payoff of long standing LTGO debt to not only allow us to continue with standard level of service during these uncertain times, but also absorb staff hired under Staffing for Adequate Fire and Emergency Response (SAFER) grant program, funding for which has now expired. Operational revenues and expenses are balanced for the proposed budget and the fund balance is expected to stay very close to current levels by the end of the biennium. That said, external factors such as the COVID pandemic, severity/length of pandemic, the extent of mitigation measures, availability of vaccines, and the eventual policy impacts as the result of national elections, assumptions made regarding major revenue sources such as sales tax, hotel/motel tax, gaming tax, and building permits could change, forcing the City to utilize reserves to maintain current service levels or adjust services. Infrastructure Funding As the City’s infrastructure ages and the City grows, systems are faced with two different kinds of financial pressures. While in concept new growth is expected to mitigate its impacts, this process does not happen prior to or even during its development. The City imposes impact, mitigation, latecomer’s fees and other development-related charges and costs. These exactions are, as a function of State law, often recouped over many years following the time a commercial or residential development starts its operation. Additionally, the City has the obligation to develop capital facilities necessary to support basic services. Council approved the 2021-2026 Capital Improvement Plan (CIP) totaling $267M, a significant portion of which is planned to be completed during the 2021-2022 biennium. Large capital projects like the Lewis Street Overpass and Peanuts Park will not be included in the budget as these projects will be part of the carry-over. Additionally, as we discussed during the CIP presentations, low interest loans for utility infrastructure have been highly competitive. This has resulted in a greater reliance by municipalities on revenue bonds. However, the City has a good chance of receiving a significant amount in loans from Department of Ecology with a minimal interest rate, saving significant dollars in debt service. A revenue bond is not considered secured funding until Council has approved an ordinance authorizing commencement of the process. Staff does not authorize work for which funding is not secured. GENERAL FUND Revenue The chart below portrays budgeted General Fund revenues, by source, projected for the 2021- 2022 biennium. Total general revenues, excluding sources that are one-time in nature, of $120.0M are projected for the biennium. This is an increase of 9.3% from the 2019-2020 adopted budget due primarily to several factors:  Strong sales tax receipts fueled by new construction.  Growth related increase in assessed valuation and associated property tax revenues.   22   Accounting change in receipting of utility taxes – receipted into General Fund then transferred out.  Increased utility tax receipts due to large part to additional customers and less so to rate changes.  A continued focus on efficiency has resulted in greater revenues through: o Business Licensing Program o Engineering overhead recovery, development and a more robust list of budgeted capital projects. The result of which, along with the allowable uses of CARES funds to offset operational impacts, is the City’s ability to maintain its 2019/2020 ending fund balance during this unprecedented time. Staff will continuously monitor and if base assumptions change, the budget may be adjusted by Council action at any point. The three major revenue sources to the General Fund are the City’s share of sales tax, utility tax, and property tax. A brief synopsis of each major revenue source is as follows: Sales Tax – Sales tax is the General Fund’s largest revenue stream and includes regular Retail Sales Tax, as well as Criminal Justice and Public Safety Sales Tax. The latter two taxes are mandated to provide public safety services to the citizens of Pasco, while the regular retail tax funds all general services. Since 2014, sales tax revenues have trended upward, averaging more than 5% growth annually. This growth has been fueled by new construction and supported by a modestly expanding commercial inventory, auto, and large equipment sales. Even during the COVID pandemic, the City has received strong sales revenue due to increased activity in construction and vehicles sales. It should be noted that sales tax revenues dropped significantly during the time COVID mitigation measures required retail auto dealer and construction to be shut down. Both industries have rebounded, from the City’s perspective, although supply chain impact in both industries impacted their recovery and only recently have returned to pre-shut-down levels. - 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 Taxes Intergovernmental Fines & Forefeits Other Financing Sources$'s in thousands2021-2022 Budgeted General Fund Revenues 2021 Budget 2022 Budget   23  Utility Tax – An 8.5% tax on gross revenues of all public utilities is paid to the City on a monthly basis by system users. The City’s Water, Sewer, Irrigation, Stormwater, and Reuse utilities are subject to utility tax, as well as companies who provide natural gas, electricity, phone, cable, and garbage services in the City limits. The General Fund receives 88.23% of utility tax revenue, while the Street Fund receives 2.35% and the Overlay Fund receives 9.42%. While new home construction creates more accounts and revenue, extreme cold and hot weather are big factors in overall revenue from this source. The City has seen a steady decline in telephone utility tax since 2014. This is likely due to the competition of many service providers and the diminishing use of landlines. Although utility tax revenue reflects very measured growth, it is a stable source of recurrent revenue to the City. Property Tax – A major challenge faced by the City is to manage the real world increases in the costs of providing essential services and increasing demands with the limitations of Initiative 747 (I-747). I-747 limits yearly property tax increases to the lessor of 1% (excluding new construction) or the Implicit Price Deflator (IPD). This means that even though the City’s assessed valuation has been increasing significantly, the increase in property tax revenue across the City cannot follow the same trajectory. Property tax revenue for the City has been increasing higher than 1% due to new construction; however, a recession can significantly affect such revenue source, for instance, property tax revenue increased by 19% from 2014 to 2018 due to new construction. For 2021, Council has forgone statutorily allowed 1% annual increase and banked the capacity for possible future use. Other Tax – About 2% of the total tax revenue is comprised of Gambling, Leasehold and Admission Tax. Taxes make up 74% of the 2021-2022 General Fund revenue, excluding debt proceeds. Grants – The City often receives grants for one-time purchases or temporary funding of positions. Of note is the expiration of the Staffing for Adequate Fire and Emergency Response (SAFER) grantwhich extended for a period of three years. The expiring grant funded six firefighters over three years in the amount of $444K, $444K, and $208K for years 2018, 2019, and 2020 respectively. The City utilized this grant to help staff Station 84. The preliminary budget fully absorbs the cost of these positions. City also received $416K Assistance to Firefighters Grant to purchase SCBA equipment for the Fire Department, as well as, $100K to purchase a spill response. Furthermore, City will fully absorb 4 staff Police Officers funded by Community Oriented Policing Service (COPS) grant starting early 2022. City has/will receive $166K each year since its full implementation in 2019. Expense General Fund regular expenses are budgeted at $109.2M for 2021-2022 biennium, an increase of 9%, most of which is directly attributable to increase in personnel costs and significant increase to supplies costs. This does not include the transfers in and out between the City’s various funds. The preliminary budget proposal accounts for cost of living adjustments, contractual bargaining results, and the impact of succession planning and retirement cash-outs. Retirement cash-outs are significant, but a fact of operations. The City is obligated to cash out vacation and portions of sick time based on personnel policies and/or labor agreements. While some work can be postponed during the recruitment and the training period, it has been   24  found that recruiting replacements before a retiree leaves results in savings through better trained staff, sustained productivity, and less overtime and strain for other staff during the transition period. Most of the other sources are small dollar one-time activities, or Council directed yearly transfers. The budget includes approximately $3.5M in the form of a bond proceed for the aforementioned Fire department projects like completion of Station 84, design of Station 85, and Fire Training Center Improvements. These funds are then transferred out to General CIP (construction fund) to complete the construction of the project. The graph below represents categories of expenses by year for the 2021-2022 biennium. UTILITY SERVICES The greatest challenge for the Utility Fund is to ensure financial self-sufficiency; that the infrastructure is kept in good service and that new capital needs or large maintenance or improvement requirements are anticipated, planned and timely communicated to Council. Council has approved the City’s 2021-2026 CIP which accounts for the majority of the key issues this fund is facing. Needed upgrades or replacement of aging infrastructure that has reached or is nearing the end of its useful life, as well as the Growth Management Act (GMA), which requires the City to have capital facilities in place and readily available when new development occurs or a service area population grows, drives the capital project aspects of this fund. The City expects to expend close to $87M in capital projects in this biennium cycle. Staff will pursue grants, low interest loans, and finally, revenue bonds, as funding options for these projects. This significant investment to the backbone of the City will require modest rate increases in Water and Sewer services in the future. As utilities require significant infrastructure investment, anticipating necessary improvements in a proactive fashion is critical to provide safe, reliable, and efficient vital services to our residents. To reflect the significant capital - 5,000 10,000 15,000 20,000 25,000 30,000 Salaries & Wages Personnel Benefits Supplies Services & Charges Capital Outlays Debt Services Transfer out Interfund Payments for Services$'s in thousands2021-2022 Budgeted General Fund Expenses 2021 Budget 2022 Budget   25  project load, (2) additional FTEs, a senior engineer and a civil engineer, are proposed. As the result of system growth and increased sophistication through the application of technology, the preliminary budget includes the addition of (1) FTE for SCADA Technician. The City currently has (1) SCADA Technician with no backup. Furthermore, (1) FTE of Heavy Equipment Operator was moved from Street to Stormwater to align budget allocation with on the ground operations. AMBULANCE SERVICES Access to sustainable, reliable, and efficient ambulance service for its residents, businesses and visitors has been a top priority for the Council and the community. To that end, the Council has put considerable effort and investment into stabilizing the fund fiscally and in addressing service deficiencies through the authorization of a fourth medical unit, currently operating out of temporary Station 84. The fourth unit has lessened response times dramatically within the Riverview area of the City and has enhanced response times and reliability in the remainder of the City by relieving the remaining units of the need to provide primary cover to Riverview. Capabilities, coverage, quality and timeliness are much improved today than was the case just four years ago. The investment made to the Ambulance Service, coupled with enhancements to the Fire Department, have made a significant and positive impact to the safety of the community. The needs of this fund are unique; as in, this is a highly regulated area with high equipment standards, daily demands that regularly tax the capacity of the system, constantly increasing and sometimes widely fluctuating costs for medical supplies, and a specialized workforce requiring significant ongoing training and advanced certifications. On the financial side, the fund experiences a high population of Medicare, Medicaid and uninsured patients as compared to ambulance utilities in other local jurisdictions. In the case of Medicare and particularly Medicaid, this demographic composition results in lower reimbursement revenue from the federal government as compared to private insurance reimbursement. These lower reimbursements, coupled with the high number of uninsured patients, had an adverse impact on revenues to the fund, which in turn has necessitated increases in monthly rates. The Council has faced this economic challenge for the past several years and it is a continued principal issue during the development of this budget. During the 2019-2020 biennium, Washington State and ambulance service providers have made considerable progress in implementing the Ground Emergency Medical Transport (GEMT) program, which in part provides reimbursement to local ambulance providers for service to Medicaid patients, including transports. While there is not enough data yet to form a significant trend, the City has received $5.4M in total for service years from 2017 to 2020, higher than anticipated GEMT revenue. A word of caution that the City has not been audited by the Healthcare Authority of Washington (HCA) and could be obligated to payback any overpayments made by the agency. Furthermore, the Council also authorized changes to the City’s application of the Ambulance Utility Fee from a standard unit, regardless of size or activity, to one based upon Equivalent Residential Unit (ERU). This change was implemented to maintain equity among users of the City’s service and has increased revenues to the fund by approximately $400,000 annually.   26  The City is also aligning operations with budget allocation in the last 5 years. This has resulted in labor costs being moved from General Fund to Ambulance Fund to reflect the operation on ground, moving (2) FTEs from General to Ambulance Fund in the 2021-2022 biennium. The good news is that after many years of working through the issues noted above, the community enjoys a much-improved ambulance service and the fund is now stable and sustainable with moderate rate increases. Moving forward, and absent any other significant and unforeseen changes, fund expenses are expected to decrease modestly because of the specialized nature of the service, higher than the Consumer Price Index (CPI). Staff is not recommending any rate increases for this biennium, however, the rapid increases to the costs will require attention in the future. SUMMARY The adopted budget seeks to satisfy or make significant progress toward the City Council’s adopted goals for 2020-2021 by providing for the implementation of important policy decisions made by the City Council through the process of prioritization, recognition and implementation of efficiencies. Developing a balanced budget is always a challenge. A helpful decision-making filter used in budget considerations and the very purpose of this organization is as follows: If the City and its services went away tomorrow, why would the people want us back? As with the prior biennium, this preliminary budget attempts to maximize value through the efficient provision of services while minimizing the level of taxes, rates and fees paid by the citizens of Pasco. The addition of the staff below will help the City meet its current and future needs to respond to the challenges of maintaining services for our growing community. NEW POSITIONS 2021 FUNDING SOURCE Application Specialist 1 General Fund Civil Engineer 1 Utility Fund Deputy Court Clerk 1 General Fund SCADA Technician 1 Utility Fund Senior Engineer 1 Utility Fund TOTAL 5 I want to acknowledge the public for their willingness in presenting their concerns and priorities throughout the year in different venues: community meetings, listening sessions, National Community Survey, correspondence, social media, and City Council meetings. And, also, the members of the City Council for their efforts to distill all that comes before them into clear policy direction; particularly in the development of the 2020-2021 City Council Goals, which have served as a roadmap to preparing the 2021-2022 preliminary budget. Finally, I want to acknowledge the dedication and service of the City’s employees. The preliminary   27  budget is the product of an intensive effort by all departments to ensure that this is not just a document, but a plan, to best serve those who live and invest in the community. Respectfully Submitted,   28    29  BUDGET OVERVIEW This section summarizes the 2021-2022 Biennial Budget and provides high-level information on revenues and expenditures for all City funds, as well as a review of major financial issues the City currently faces. The 2021-2022 Budget maintains the same service levels as 2019-2020 biennium; however, short and long-term economic impacts of the COVID-19 pandemic, elections, congress action, and length of the pandemic will require the City to be extremely vigilant and nimble. In order to maintain service levels consistent with growth, the City plans to hire the following positions: one Information Services System Administrator, one Senior Engineer, one Civil Engineer, one Municipal Court Clerk, and one SCADA Technician. Capital projects scheduled for the 2021-2022 biennium are focused towards two notable areas: improvement and expansion of City’s utility infrastructure and providing a safe and efficient transportation network to pedestrians, bicyclists, and drivers. Major capital projects for the biennium include improvements to the Wastewater Treatment Plant, Process Water Reuse Facility Primary Treatment, Butterfield Water Treatment Plant, and West Pasco Water Treatment Plant. The City is also investing in expansion of pedestrian and bike pathways and improving the safety of the transportation system by constructing the Lewis Street Overpass and upgrading traffic controllers. The total capital budget is approximately $128.3M for 2021- 2022. The total General Fund budgeted expenditures is $117.21M, excluding fund balance for 2021-2022. The total budget for all City funds is $462.8M, including fund balances, for 2021- 2022. Budget Priorities The following priorities guided the development of the biennial budget: GROWTH - Enhance programs, services and availability of facilities to meet the needs of the growing population. PLANNING - Strengthen and further high level of public safety services, recreational infrastructure and services, and overall City planning in conjunction with the City’s growth. CAPITAL PROJECTS - Address critical capital and infrastructure needs driven by the Growth Management Act (GMA) and aging infrastructure. ECONOMIC DEVELOPMENT – Focus on local business retention, expansion, and support. Establish long range planning to revitalize downtown Pasco, and new business recruitment. QUALITY OF LIFE – Enhance quality of life by focusing on mobility, arts, culture, and community events. ORGANIZATIONAL EFFICIENCY – Apply technology, planning, and people to achieve organizational efficiency.   30  Budget Purpose A government’s budget reflects its vision, strategy, and priorities. Effective budget processes are inclusive, transparent, and efficient. They build trust through involvement and buy-in from citizens, department leaders, and elected officials. A good budget should start with vison, strategy and goals, invite citizen input, and be transparent. The budget presents in detail the financial plan of the City, including its various sources of revenue and the allocation of resources to the various programs. The City of Pasco’s budget is intended to accomplish the following four basic purposes. Policy Tool The City’s budget process allows the City’s officials to comprehensively review the direction of the City and to redirect its activities by means of the allocation of financial resources. On this basis, the budget sets policies and direction for the following two years. This budget also facilitates the evaluation of City programs by providing a means to examine both the financial activities and the progress towards City objectives over time. Operational Guide The adopted budget constitutes the legal authority for expenditures. This allows a level of control at which expenditures may not legally exceed appropriations in the fund. The budget provides control by setting forth legislative and administrative guidance to City employees regarding the character and scope of their activities. This direction is set forth in both summary and detail form in the various sections of the budget document. This is also a supplemental tool to evaluate and measure progress. Financial Plan Our budget outlines the manner in which the financial resources of the City will be managed during the budget period. The allocation of resources is based on both the current needs and on a long-term view of the development of City programs. The information is generated by the City’s financial forecast. This forecast is a financial tool that provides the City’s decision- makers with an indication of the long-term fiscal impact of current policies and budget Budget Purpose Policy Tool Operatio-nal Guide Financial Plan Communi-cation Tool   31  decisions. The budget takes into account unforeseen contingencies and provides for periodic adjustments. Communication Tool A budget cannot be effective unless it is clear, accurate, and promotes transparency and accountability. Since this budget has a diverse audience, it seeks to clearly communicate at several levels and for several purposes. It also seeks to communicate significant policy issues and options in a format that can be acted on. It further seeks to provide information to the City’s citizens in a way that enables meaningful dialog with elected officials. Basis of Budgeting The City prepares a biennial budget in accordance with RCW 35.34 which allows cities to adopt two-year appropriations. Biennial budgets begin in odd-numbered years and require a mid-biennium review in the first year. The intention of the mid-biennium review is make necessary adjustments to the budget, not to complete an entire budget process in itself. Changes to the budgets may be done in the form of adjustments or amendments. Adjustments are reallocations of existing appropriations and do not change the budget “bottom line”. Amendments involve an addition to or reduction of existing appropriations. Typically, the mid-biennium review begins in September and is completed by December of the first year. The utilization of a biennial budget provides an opportunity to expand the planning horizon and encourages long-term thinking to be a part of the financial plan that the budget represents. The budget for governmental funds is prepared on a modified accrual basis of accounting in conformity with generally accepted accounting principles (GAAP) applicable to governments. The budget for proprietary funds is prepared on an accrual basis, also in accordance with GAAP. Financial statements for each of these funds are prepared using the same basis of accounting; modified accrual for governmental funds and accrual for proprietary funds. Components of the Budget The budget consists of two parts: the operating budget and the capital budget. Showing the budget in these two components separates key policy issues in order to facilitate consideration. Based on information, analysis and recommendations from the City Manager and the public, the Council sets policy as the level at which existing programs should be funded, what programs of services might be added and what improvements should be made and at what level of funding. The components are briefly described below. Operating Budget The operating budget consists of departmental budget proposals, which would be sufficient to support the department objectives and contribute to achieving Council goals. Capital Budget The capital budget authorizes and provides the basis for controlling expenditures related to the acquisition of significant City assets and construction of capital facilities. The capital budget is established with the intent to achieve the goals set forth in the City’s six-year Capital   32  Improvement Plan. Capital is defined as land, improvements to land, easements, buildings, building improvements, vehicles, machinery, equipment, infrastructure, and all other tangible or intangible assets that are acquired with an individual purchase greater than $5,000 and are expected to have a useful life greater than one year. Implementation and Monitoring The budget and its policies are implemented through the objectives of individual departments and accounting controls of the Finance Department. The financial aspects of the budget are monitored in periodic reports issued by the Finance Department comparing actual expenditures and revenues with the budget. These reports are presented to City Council for monitoring and oversight. In these reports, financial data can be presented at a higher level of detail than the final budget. These reports include an analysis of the City’s financial condition. Implementation of the budget is further monitored by the oversight activities of Council, which meets to not only consider proposals before it, but also to review the activities of the various City departments. Furthermore, individual departments hold monthly a budget process meeting to evaluate progress and consider necessary operational adjustments. As noted above, the status of the budget is reviewed routinely throughout the year. Additionally, a comprehensive review is performed mid-biennium. During this budget monitoring process, the need to modify the adopted budget may become evident. There are two methods for modifying the adopted budget. One method does not affect the “bottom line” total for the department or fund. These changes are mainly transfers from one account line-item to another within a department’s operating budget or changes between divisions within a department. In these instances, the changes are requested by Department Directors, and approved by the City Manager and Finance Director. The second method for modifying the adopted budget is through a formal budget amendment. A budget amendment changes the total appropriation for a department or fund. This type of change might result from circumstances such as acceptance of additional grant funds, appropriation of additional funding if expenditures are projected to exceed budgeted amounts, or re-appropriation of money from one fund to another when deemed necessary. All requests for amendments are first filed with and reviewed by the Finance Department. These changes require Council approval. Budget Process The City of Pasco’s budget process meets the aforementioned purposes by integrating planning and implementation of City programs with the allocation of financial resources necessary to support those services. The budget process has various levels and aspects. The initial steps include obtaining input on needs and feedback from the community, which occurs in the spring of even numbered years. This information is taken into consideration, along with input from departments and progress evaluations from the prior year. In late spring, City Council reviews previous goals and objectives, as well as the current year’s goals and objectives. Then staffing levels, emerging   33  topics, and program priorities are reviewed with departments. After the input is obtained, the City Council sets its Biennial Goals, which occurred in August of 2020. Due to COVID-19 pandemic, preparation of budget, from creation of Council Goals to finalization of the revenue assumptions were delayed by several months. With the Council’s Biennial Goals and priorities established, the Capital Improvement Plan process begins in May and is finalized in October. However, the Capital Budget is not formally adopted until December, along with the Operating Budget. The Capital Improvement Plan includes capital projects scheduled for construction, which are intended to meet the biennial goals established by Council. For the most part, departments use a “bottom-up” approach to budgeting in which they develop their objectives along with identifying their fiscal requirements. Alongside the Capital Improvement Plan process, departments submit preliminary budget requests to the Finance Department. At this time, the Finance Department and City Manager meet with Department Directors to review budget requests and discuss possible modifications. Implementation of policy discussions from over the year is evaluated against the budget reality and priorities. The preliminary Capital Improvement Plan is presented to Council in early fall by the City Manager for approval. In early fall, the Finance Department begins the budgeting process for the revenue aspect of the budget. This is done in the form of preliminary revenue forecasts and possibly rate studies of services and fees. Part of the revenue budgeting process is the presentation and public hearings regarding the Ad Valorem Tax (property tax) levy. Public hearings and departmental meetings are coordinated, as needed, to ensure timeliness, transparency and allow for the opportunity for adjustments before the budget takes a formal shape. The Operating and Capital Budget, including the projects in the Capital Improvement Plan, are then adopted by Council in December. Not only is planning and establishing the budget of importance but implementing and monitoring the budget is also of high value. Monitoring the budget is a continuous effort and, as such, department heads meet monthly for budget progress meetings. These meetings allow the departments to ensure they are on track and implement any necessary adjustments in a timely manner in order to meet objectives and stay within budget. Further, in the summer of odd numbered years, departments will meet with the Finance Department to evaluate progress and recommend adjustments for the remainder of the biennium. Mid-year budget adjustments will then be adopted by ordinance.   34  Budget Calendar   35  Fund Descriptions The City is financially organized into separate fiscal and accounting entities known as Funds. Each Fund is a separate division for accounting and budgetary purposes. The Fund Accounting Process allows the City to budget and account for revenues that are restricted by law or policy for a specific use or purpose in accordance with nationally recognized rules of governmental accounting and budgeting. The City of Pasco budgets and accounts for approximately 38 separate Funds. Each fund can be viewed as a separate checking account to be used for a specific purpose. All funds of the City fall into one of the following major categories: General Fund, Special Revenue Funds, Debt Service Funds, Capital Projects Funds, Proprietary Funds, Internal Service Funds and Fiduciary Funds. Following is a brief description of these categories. General Fund: The General Fund finances most traditional services that the public associates with the City. This includes law enforcement, fire protection, municipal court, parks and recreation, community development and administrative activities. The General Fund is, essentially, a “catch-all” fund for accounting for City operations that are not required to be accounted for in a separate fund. The General Fund receives all of the property taxes, except those that are voter approved, for the repayment of debt. This is a major fund and must have an appropriated budget. Special Revenue Funds: The City uses Special Revenue Funds to account for revenues that must be used by law for specific purposes. Examples are the City Street Fund and Arterial Street Fund that account for gasoline taxes received and can only be used for maintenance and improvements to roads and Streets. The City does not have any special revenue funds classified or presented as major funds for financial reporting purposes. All Special Revenue Funds have appropriated budgets. Debt Service Funds: The Debt Service Funds are used to account for the accumulation of resources for the repayment of monies borrowed through voter approved general obligation bond sales and the related interest. This fund is not classified or presented as a major fund for financial reporting purposes. This fund does not require legal appropriation since the authorization of general obligation debt includes the amortization schedule which serves as a budget for the life of the debt. Capital Projects Fund: This fund accounts for financial resources that are restricted, committed or assigned to expenditures for the acquisition and construction of major capital facilities. Most capital projects are accounted for in this fund. Capital projects related to Enterprise Funds are accounted for within the Enterprise Funds. The City’s Capital Projects Fund is known as the Construction Fund and is presented as a major fund for financial reporting purposes. This fund has an appropriated budget for the biennium. Proprietary Funds: The Proprietary Funds are established to account for operations that are financed and operated in a manner similar to private business, with the intent that the cost of   36  the goods or services provided will be recovered primarily through user charges. The Utility Fund is the City’s major fund in this category and has an appropriated budget. Internal Service Funds: Internal Service Funds are used by the City to account for the financing of goods and/or services provided by one department or fund to another department or fund of the City on a cost reimbursement basis. For example, the City uses the Equipment Rental (ER) Funds to purchase and maintain vehicles used by the various departments and funds. Each department or fund pays rent to the ER Fund to use that equipment. The City does not have any Internal Service Funds classified or presented as major funds for financial reporting purposes. These funds are not subject to budget appropriations. Fiduciary Funds: These funds are also referred to as Trust or Custodial Funds and are used to account for assets held by the City on behalf of outside parties, including other governments, or other funds within the City. For example, the Cemetery Trust Fund holds a portion of the proceeds from the sale of gravesites in order to provide ongoing grounds maintenance and care of the facility. The City does not have any Fiduciary Funds classified or presented as major funds for financial reporting purposes. These funds are not subject to budget appropriations.   37          38  Fund Structure Fund Number & Title Responsibility Budget Description General Fund Revenues Finance Director General government activities General Fund Operations Council Council Council Municipal Court Judge Municipal Court City Manager Council Management of City, communication, legal, and risk Human Resources HR Director Management of personnel and safety Police Police Chief Police services Fire Department Fire Chief Fire services (Not including Ambulance Services) Administration ACS Director Management of Facilities, Parks, Recreation, Information Services Community Development CED Director Community Planning, Economic Development, and Code Enforcement Finance Finance Director General Finance Engineering PW Director Public Works Administration and Engineering Library ACS Director Mid-Columbia Library Non-Departmental Finance Director Citywide expenditures, fund transfers, fund balance & one-time expenditures Special Revenue Funds 110 Street PW Director Operations & maintenance of City's Streets 120 Arterial Street PW Director Construction & maintenance of City's arterial Streets 125 I-182 Impact PW Director Construction & maintenance of geographically bound City's transportation network 130 Street Overlay PW Director Overlay of City's transportation network 140 CDBG CED Director Community Development Block Grant (CDBG) 145 MLK Center ACS Director Recreation Center 150 Ambulance Fire Chief Ambulance operations & service 160 Cemetery ACS Director Cemetery operations & service 161 Blvd Maintenance ACS Director Maintenance of City's boulevards 165 Athletics ACS Director Manage recreation programs 166 Golf Course ACS Director Manage recreation operation facility 170 Senior Center ACS Director Manage recreation program for seniors 180 Multi Modal ACS Director Train station, bus station & any of City's transportation network 182 School Impact Finance Director Pass through funds collected for Pasco School District 185 Marina ACS Director Manage recreation program 188 Lodging City Manager Manage Lodging tax for promotion of tourism 189 Litter Abatement CED Director Manage litter programs 190 Revolving Abatement CED Director Defray expenses related to repair, demolition, and cleanup of dangerous buildings, and abatement of nuisances 191 TRAC City Manager Manage Trade Recreation Agriculture Center 192 Park Development ACS Director Management of Park Development Program (mostly capital projects) 193 Capital Improve REET City Manager Real Estate Excise Tax used to fund major capital infrastructures 194 Economic Development CED Director Promote economic development of the City through revenues received from City's property leases 195 Stadium/Convention Center City Manager Management of recreation program 196 Hotel/Motel Excise Tax Finance Director Manage Lodging tax for promotion of tourism   39  Fund Number and Title Responsibility Budget Description Debt Service Funds 200 LID Guarantee Finance Director Reserves for security of Local Improvement Districts (LIDs) 244 LID Loans Finance Director Principal & Interest, Local Improvement Districts 245 LID Bonds Finance Director Principal & Interest, Bonds Capital Projects Funds 367 Capital Improvements Finance Director Capital Improvement – Citywide projects Enterprise Funds 410 Utilities PW Director Operation and Capital fund for Water, Irrigation, Sewer, Reuse and Stormwater Internal Service Funds 510 Equipment O&M Government PW Director Operation and maintenance of government vehicles 511 Equipment O&M Utility PW Director Operation and maintenance of enterprise vehicles 515 Equipment Replacement Government PW Director Equipment replacement fund for government vehicles 516 Equipment Replacement Utility PW Director Equipment replacement fund for enterprise vehicles 521 Medical/Dental City Manager Management of City's self-insured medical insurance 530 Central Stores Finance Director Currently dormant fund Fiduciary/Trust Funds 610 Old Fire Pension Finance Director Pension fund for fireman's retirement 619 Old Fire OPEB Finance Director Pension fund for fireman's benefits Permanent Fund 605 Cemetery Endowment Care Finance Director Long-term reserves for cemetery care and improvements Debt Service Funds 200 LID Guarantee Finance Director Reserves for security of Local Improvement Districts (LIDs) 244 LID Loans Finance Director Principal & Interest, Local Improvement Districts 245 LID Bonds Finance Director Principal & Interest, Bonds Capital Projects Funds 367 Capital Improvements Finance Director Capital Improvement – Citywide projects Enterprise Funds 410 Utilities PW Director Operation and capital fund for Water, Irrigation, Sewer, Reuse and Stormwater Internal Service Funds 510 Equipment O&M Government PW Director Operation and maintenance of government vehicles 511 Equipment O&M Utility PW Director Operation and maintenance of enterprise vehicles 515 Equipment Replacement Government PW Director Equipment replacement fund for government vehicles 516 Equipment Replacement Utility PW Director Equipment replacement fund for enterprise vehicles 521 Medical/Dental City Manager Management of City's self-insured medical insurance 530 Central Stores Finance Director Currently dormant fund Fiduciary/Trust Funds 610 Old Fire Pension Finance Director Pension fund for fireman's retirement 619 Old Fire OPEB Finance Director Pension fund for fireman's benefits Permanent Fund 605 Cemetery Endowment Care Finance Director Long-term reserves for cemetery care and improvements   40  Comparative Budget Summary Trend - All Funds * 2021 Beginning Fund Balance is an estimation of 2020 activity and hence differs from 2020 Budgeted Ending Fund Balance. ** Of the $77M budgeted for Miscellaneous Revenue $70.8M or 91% is for unsecured funding for capital projects 2017 Actual 2018 Actual 2019-2020 Budget 2021-2022 Budget Revenues Taxes 37,780,892$ 38,788,691$ 81,736,607$ 88,770,677$ License & Permits 2,761,247 3,142,800 5,642,396 6,907,059 Intergovernmental 14,088,865 14,988,218 32,641,667 34,950,722 Charges for Service 55,516,483 56,280,731 118,923,617 127,073,280 Fines & Forfeitures 960,287 1,071,817 2,072,200 2,826,354 Miscellaneous 4,099,973 4,379,009 53,068,319 77,370,288 Other Sources 89,802 98,749 172,620 172,620 Total Revenues 115,297,549 118,750,015 294,257,426 338,071,000 Expenditures Salaries & Wages 28,961,637 30,498,231 65,813,141 73,538,787 Personnel Benefits 10,799,045 10,295,557 24,263,254 25,733,712 Supplies 5,349,495 5,339,941 11,910,790 13,524,417 Services & Charges 31,633,786 34,286,110 71,415,878 75,345,611 Capital Outlays 18,947,206 17,014,694 117,323,332 128,256,258 Debt Services 6,931,444 6,703,861 20,376,554 14,496,089 Interfund Payments for Services 8,524,858 7,704,857 17,407,384 17,949,984 Total Expenditures 111,147,471 111,843,251 328,510,333 348,844,858 Other Financing Sources (uses) Debt proceeds 10,767,834 2,498,086 28,389,578 1,936,921 Proceeds from Sale of Capital Asset 66,693 184,112 - - Transfer In 6,531,386 3,473,741 37,881,366 19,916,986 Transfer Out (6,531,385) (3,551,967) (39,325,366) (19,916,986) Contributed Capital 1,854,323 2,095,407 3,610,200 4,949,440 Total Financing Sources (Uses)12,688,851 4,699,379 30,555,778 6,886,361 Net Change in Fund Balance 16,838,929 11,606,143 (3,697,129) (3,887,497) Budgeted Beg Fund Balance - - 86,436,391 97,881,361 Budgeted End Fund Blaance -$ -$ 82,739,262$ 93,993,864$   41  General Fund The General Fund is the City’s largest fund and accounts for the majority of the City’s revenues and expenditures. Of the $113.0M in revenues expected in 2021-2022 biennium, over 71% of the revenues are expected from taxes levied on property, sales, and utility. While property tax is the most known of taxes levied by a municipality, property tax only makes up 20% of total General Fund revenue. sales tax, on the other hand, makes up the largest portion of the General Fund revenue, 30%, which is followed by utility tax at 21%. The City has been one of the fastest growing communities within the State and the Country. The assessed valuation of the City, as shown in the graph below, is an indicator of this growth trajectory. At $6.69 billion dollars, the preliminary assessment for 2021 represents an increase in total assessed value of 236% since 2006. $1.99 $3.94 $4.80 $6.12 $6.69 $- $1 $2 $3 $4 $5 $6 $7 $8 2006200720082009201020112012201320142015201620172018201920202021Billions   42  The City has a fairly diverse economy, with approximately half of the City's sales tax being collected from retail activity, including automotive dealers. The chart illustrates the major sources for the City's retail sales tax for the last 12 months. On average, 15% of the City’s sales taxes can be attributed to construction sales tax. This revenue source is highly sensitive to a downturn in national/regional economy. Other revenue sources that are accounted for in the General Fund included partnerships with the Port of Pasco supporting operations of the Airport Rescue and Firefighting (ARFF) Division and Pasco School District by providing School Resource Officers, as well as building permits, grants, and overhead recovery from the City’s Utility Fund. As noted above, there is a significant amount of growth related revenue, such as new construction property tax, construction sales tax, and building permits, that the fund relies on for operations. The City can be impacted by decisions made by the Washington State Legislature. As has occurred within just the last several years, changes in State shared revenues, for example, Liquor Board profits, Liquor Excise Tax, and Gas Tax, can significantly impact the City’s bottom line. The Main Street Fairness Act, which requires the collection of sales and use tax by out-of- state retailers, is expected to bring in more revenue for the State and its cities. However, it will take 5 to 10 years to build the framework to fully benefit from this law that attempts to level the playing field between online and store retailers. The most significant recurring expense of General Fund is salary and benefits, making up 57% of the fund’s expenses during this biennium. The General Fund includes several large departments such as the Police Department, Fire Department, Engineering, Permitting, Recreation and Finance, which contribute to the high labor costs. The labor and benefits budget increased from the 2019-2020 biennium to the 2021-2020 biennium by 11% due to various factors. The 2019-2020 labor and benefit budget did not include the actual increase in Police Department labor due to ongoing contract negotiations at the time. Furthermore, 1.75 additional FTEs were added to General Fund during the biennial adjustment. The proposed budget also includes 2 additional Engineering FTEs, though the General fund is expected to be fully reimbursed by the utility fund for work completed by the Engineers. The second highest expense of the General Fund is service contracts, accounting for 23% of the   43  budgeted fund expenses. Some service contracts are recurring, such as for banking, janitorial, equipment maintenance and insurance, while other service contracts are unique and infrequent, such as consultant services for rate studies or internal cost of service studies. While supplies and services costs have increased by $1.3M and $2.7M, City paid off one of its 2011 refunding bonds in 2020, helping offset some of the increases to overall cost, reducing $530K each year in debt service cost. Through Council’s careful long-term planning, aided by robust growth, the City’s General Fund has sustained a stable fund balance of $22.0M, The 2021-2022 budget is balanced due to the fact that the economic outlook for the City is assumed to be largely positive. During the pandemic, major revenue sources for the City have held mostly steady due to strong construction and vehicle sales activity. Construction activity for the City is expected to continue at the current pace for 2021 and 2022. However, uncertainty around action of the Federal Government on a second round of CARES Act funding, production and distribution of an effective vaccine, and the length of the pandemic will affect assumptions made in this budget. The City will need to remain cautious, as it has in the past, to properly balance the needs of a large City with the revenue it generates and do so in a timely manner. Ambulance Services Fund Over the past many years, City Council and Staff have worked together to pursue a pairing of effective service with financial security for the Ambulance Service. The budget presented for the years of 2021-2022 continues to reflect the focus of planning with the inputs to support quality service, while being cognizant of the need to prudently manage cost escalation. The Ambulance Service became an eligible provider in the Ground Emergency Medical Transportation (GEMT) program approved by the Washington State House during the 2015- 2016 legislative session. As anticipated as part of the implementation of a program that supports ambulance service providers statewide and coordinates payment with the Centers for Medicare & Medicaid Services at a federal level, time was necessary to establish the program and process payments. While anticipating the receipt of a retroactive payment related to GEMT eligible ambulance transports, it was necessary to depend on an inter-fund loan from the General Fund at the end of 2018. By the beginning of 2020, the interfund loan was satisfied. However, this satisfaction included forgiveness of $700K of a $2M loan. While the program officially started for transports in June 2016 forward, all payments received through the GEMT program took place in 2019. For the years of 2021-2022, GEMT revenue is budgeted as $1.7M annually, or 19% of the fund revenue. Other transport revenue accounts for approximately 16% of fund revenues. Other than transport revenue, based upon the demand cost of the Ambulance Service, there are substantial availability costs associated with the service. As the name implies, the cost associated with providing ambulance service 24 hours a day, seven days a week is the basis for the creation of our rate billed to households and businesses in the City. The budgeted revenue for the 2021-2022 ambulance utility fee represents approximately 58% of the fund’s   44  revenue. Finally, each year the general fund provides a subsidy of $420K making up 4.7% of the fund’s revenue. The coming years will require that the City remain diligent on both sides of the financial picture of the Ambulance Fund, revenue generation and expense discipline. However, in comparing the activity over the past few years, progress has been made. For example, the Adopted Budget for 2018 reflected revenues of 75% of expenses. This biennium budgeted revenues, exclusive of the general fund subsidy, represent 91% of expenses. The greatest cost borne by the Ambulance Fund on a recurring basis is related to salaries and benefits. For this biennium, labor cost accounts for 75% of the fund’s expenses. Significant increase over the last three years in the Ambulance Fund labor cost is reflective of numerous changes, including the addition of a fire station, plus the need to anticipate the change in the fund’s workforce related to retirements. Between the formation of the prior budget and this budget, Station 84 necessitated the need for additional Lieutenants and Captains. Another element of the increase in Ambulance Fund labor relates to the source of calls received. The Fire Department and Ambulance staff members support calls collaboratively. As the City provides more medical call service related to fire calls, the labor costs tied to one FTE was transferred from the Fire Department to the Ambulance Fund budget. Finally, reflective of our work force composition, it is prudent to anticipate retirements and, as such, plan for succession. As long-term employees retire, the cost effect can be two-fold; first, requiring the need to hire and then beginning the training process for replacement staff. Also, often times, retiring staff members have significant levels of earned leave that must be cashed out in a lump sum. Service type expenses account for the remaining majority of the fund’s expenses, or 21% of budgeted fund expenses. These services include utilities for combined Fire/EMS stations, dispatch support services, insurance premiums, software support, repair and maintenance for equipment and facilities, costs related to training, support from other City services to provide accounting, information systems and equipment, and state taxes. Supplies account for four percent of the Ambulance Fund’s expenses. This budget reflects an increase of 16% over the past biennium. A factor of this increase is in part due to the increased demand in sanitizing supplies and medical supplies resulting from current pandemic. As a precautionary measure, the City accounted for the possibility of prolonged response to the pandemic. Other supplies include office supplies, small tools and equipment, and uniforms and personal protective equipment. Utility Fund The utility fund accounts for the operations, maintenance and capital efforts of distinct utility services. These services are water, irrigation, wastewater (sewer), reuse and stormwater. While the utility fund is a single fund and appropriately reported as such in the annual budget document and the comprehensive annual financial report (CAFR), for budgeting, analysis, and rate setting purposes, recordkeeping for each utility service is separately maintained.   45  Total revenue included in the 2021-2022 budget is $140.9M, included in this total are revenues associated with capital projects of $76.3M, leaving an operation related revenue budget of $64.6M. Of the $64.6M budgeted, the spread of source of revenue the supermajority of the revenue related to charges for services (98.6%). The remaining revenue is made up of permits (0.8%), grants (0.2%), and miscellaneous revenues (0.4%). Charges for services are composed of water, irrigation, sewer, reuse, stormwater monthly base fees and, where applicable, consumption related charges. For the 2021 – 2022 budget, total expenses in the utility fund equal $142M. Of this total, $87M are related to capital expenses. Capital investment is crucial to the utility fund. Capital investment, both in the form of new construction and rehabilitation of existing infrastructure, is crucial and expensive. Therefore, the utility incorporates capital investment as part of the rate setting process to help offset naturally occurring degradation of the utility systems. The utility also takes effort to acquire federal and state grants, and low interest loans, where possible. Another source of capital funding is the issuance of revenue bonds. While debt should be issued with consideration of all costs, the use of revenue bonds can be beneficial for long lived assets. The life of the asset and term of debt often exist in concert allowing for an equitable distribution of debt service across the years of customer benefit. This correlation of debt and benefit prevents current customers from prepaying for assets that benefit future rate payers. The remaining utility fund expenses are supportive of operations and maintenance efforts, as well as, debt service for outstanding bonds and loans, totaling $55M in the coming biennium. Of these expenses, the mix of expense types are salaries and benefits (24%), supplies (8%), services (50%), debt principal repayment (10%) and debt interest expenses (7%). The services provided by the utility fund are foundational to the wellbeing of the City and its citizenry. As such, the City evaluates everyday practices and long-term planning to provide good stewardship for both current customers and future growth.   46  GESA STADIUM   47  Budgeted Expenditures by Administrative Structure 2017 Actual 2018 Actual 2019-2020 Budget 2021-2022 Budget MAYOR & COUNCIL: Mayor & Council 111,918 124,533 260,540 298,771 111,918 124,533 260,540 298,771 CITY MANAGER Administration 685,525 683,201 2,101,501 3,179,932 Communications 228,573 172,175 465,933 451,168 Human Resources 795,542 770,252 1,693,702 - Lodging 328,241 333,794 650,500 475,000 TRAC 122,003 239,054 553,344 554,022 Capital Improve Reet 1,422,673 582,962 8,228,527 2,042,735 Stadium/Conv Ctr 302,398 345,409 2,371,222 629,344 Medical/Dental 5,346,917 6,273,805 12,055,660 12,295,620 9,231,872 9,400,652 28,120,389 19,627,821 Human Resources Personnel - - - 1,462,146 Training & Safety - - - 261,947 - - - 1,724,093 JUDGE: Municipal Court 2 1,458,681 1,578,914 3,228,697 3,770,737 1,458,681 1,578,914 3,228,697 3,770,737 ACS DEPARTMENT: Administration 1 , 2 7,370,499 7,490,761 16,217,814 19,105,744 Library 1,445,549 1,375,894 2,905,818 3,281,856 MLK Center 110,003 131,149 283,928 281,420 Cemetery 244,595 276,084 549,096 624,664 Blvd Maint 170,000 141,828 293,564 313,426 Athletics 107,818 123,583 408,582 330,447 Golf Course 1,769,789 1,926,696 3,592,382 3,660,186 Senior Center 289,831 308,153 590,495 504,601 Multi Modal 43,476 173,628 435,573 371,013 Marina 10,471 751,714 27,132 240,112 Park Development 924,619 49,704 1,441,336 381,584 12,486,650 12,749,194 26,745,720 29,095,053   48  2017 Actual 2018 Actual 2019-2020 Budget 2021-2022 Budget FINANCE DEPARTMENT: Finance 1 2,196,310 2,270,506 5,105,873 5,566,468 Non-Departmental 5,617,752 4,966,257 28,592,505 16,603,711 School Impact 2,333,355 2,355,365 5,000,000 4,986,000 Hotel/Motel Excise tax - - 1,212,244 1,180,700 LID Guarantee 300,000 - - - LID Loans 198,172 151,632 87,656 592,117 LID Bonds 27,250 21,575 1,070 - 99UT Lib/Fire - - - - 2002 UT Ref - - - - Capital Improvement 7,378,188 9,972,662 73,608,744 34,916,047 Central Stores - - 1,000 1,000 Old Fire Pension 126,373 133,322 280,112 280,464 Old Fire OPEB 148,887 93,201 332,536 328,179 Cemetery Endowment Care - - - - 18,326,287 19,964,520 114,221,740 64,454,686 COMMUNITY DEVELOPMENT: Community Development 1,748,052 1,916,401 3,878,345 6,364,647 CDBG 707,541 817,607 1,806,424 1,629,320 Litter Abatement 8,705 10,237 30,238 30,974 Revolve Abatement 296,240 215,857 550,318 830,300 Economic Development 1,803,675 1,094,188 2,073,087 1,216,418 4,564,213 4,054,290 8,338,412 10,071,659 PUBLIC WORKS DEPARTMENT: Engineering 1,726,983 1,556,230 3,791,421 2,867,773 Street 2,511,020 2,029,626 5,303,218 4,895,451 Arterial Street 278,640 793,125 1,998,336 614,968 I-182 Impact 459,223 239,086 170,584 605,000 Street overlay 148,044 267,602 4,161,913 5,781,422 Utilities 32,055,55 4 27,916,122 95,857,578 142,647,084 Equipment Rental Gvt 3,075,945 1,836,567 6,488,774 6,940,057 Equipment Rental Enterprise 508,720 931,398 1,099,308 2,810,790 40,764,129 35,569,756 118,871,132 167,162,545 POLICE DEPARTMENT: Police 16,488,563 16,753,518 35,524,184 37,305,876 16,488,563 16,753,518 35,524,184 37,305,876   49  2017 Actual 2018 Actual 2019-2020 Budget 2021-2022 Budget FIRE DEPARTMENT: Fire 7,660,554 7,875,830 15,266,340 16,689,415 Ambulance 6,585,984 7,324,010 17,258,545 18,561,188 14,246,538 15,199,840 32,524,885 35,250,603 Budgeted Fund Balance General Fund - - 14,002,691 22,842,687 Special Revenue Funds - - 15,817,288 28,794,720 Debt Service Funds - - 1,194,608 (923,743) Capital Fund - - - - Enterprise Funds - - 23,228,788 20,571,676 Internal Service Funds - - 22,487,732 15,736,032 Fiduciary Funds - - 5,412,807 6,327,904 Permanent Fund - - 595,348 644,588 - - 82,739,262 93,993,864 TOTAL ALL FUNDS 117,678,851 115,395,217 450,574,961 462,755,708   50  Cost Center Budget The Cost Center Budget contains budget requests organized by departments that assume responsibility of the Cost Center. This detail provides summarized data presented on the departmental budget section. Below is a visual representation of departments that either depend upon or are responsible for funds listed. Support From: General Fund Departments Council Court City Mgr HR Police Fire ACS CED Finance Public Works Library TO FUNDS General Fund * * * * * * * * * * * Street * * * * * Arterial Street * * * * I-182 Impact * * * * Street Overlay * * * * CDBG * * * * * * MLK * * * * * Ambulance * * * * * * * Cemetery * * * * * Blvd Maint * * * * * Athletic * * * * * Golf Course * * * * Senior Center * * * * * Multi Modal * * * * * School Impact * * * Marina * * * * Lodging * * * * Litter Abatement * * * * * Revolv Abate * * * * * * TRAC * * * * Park Develop * * * * * Capital Improve REET * * * * Economic Dev * * * * * * * * Stadium / Conv Ctr * * * * Hotel/Motel Excise tax * * * LID * * * * * Capital Improv * * * * * Water / Sewer * * * * * * Equipment Repl Funds * * * * Cemetery Endow * * * Old Fire Pension * * * *   51  FINANCIAL POLICIES Summary and Purpose of Financial Policies The stewardship of public funds is one of the greatest responsibilities given to the officials and managers of the City of Pasco. Therefore, the establishment and implementation of sound financial policies enables the City to protect public interest, maintain public trust and guide the City to meet their objectives. These policies are designed with a long-term approach to achieve financial stability and economic growth. These policies are intended to be applied over periods extending well beyond the current budget period. Long-term stability and growth cannot be accomplished if we allow long-term deficits or choose to support on-going needs through one-time revenues. Financial best practices and fiscal prudence must dictate the City’s financial operations and procedures, as well as guide the City to meet its immediate and long- term objectives. Financial Core Values and Goals Financial Stability – The City will create financial stability to provide residents with consistent and adequate levels of public services. The City of Pasco is accountable to its citizens for the use of public dollars. All activities supported by the City must function within the limits of its financial resources. With a long-term financial approach in mind, the City will develop and maintain long-term plans, carefully weigh the costs and benefits of development opportunities and adhere to sound debt, reserve and investment policies. Some of the long-term plans in progress or will be started include the Police and Fire Strategic Plans, Cost Allocation Plan, Comprehensive Economic Plan, Comprehensive Transportation Plan, Downtown Master Plan, and the Land Use Comprehensive Plan. Accountability and Financial Planning – The City will institute financial planning that ensures City services are provided at the best value and that services are in alignment with the needs and wants of the community. Environmental and Economic Vitality – The City’s financial strategy will support continued investment in the renovation and maintenance of infrastructure, facilities, policies and programs that support a clean and healthy natural environment. The City will strive to provide effective and efficient services to ensure a safe and healthy atmosphere for its residents, businesses, and visitors, while preserving and enhancing its unique cultural and environmental attributes. Transparency and Engagement – The City will be accountable for producing value for the community by providing planning and report mechanisms that make it clear how the City plans to use its resources to achieve the community vision. The City is committed to engaging its citizens as a partner in formulating plans and delivering services. Financial Planning and Budgeting   52  Biennial Budget – The budget is a performance, financing and spending plan agreed to by the Council, City Manager and Department Directors. It contains information and data regarding expected revenues, expected expenditures and anticipated capital projects. The budget is developed using a performance-based, results-oriented approach that incorporates line items, programs and the priorities of the City. The City defines a balanced budget as current biennium revenues (including fund balances) equal to or greater than current biennium budgeted expenditures. A fiscally sound budget will include the following aspects: o Budget adoption by the Council will be at the fund level. Any changes in appropriations at the fund level will require City Council approval in the form of a scheduled budget amendment. o Position budgeting will be used as a tool for Council consideration. This will list the actual and proposed full time equivalent (FTE) allocation on a department and fund basis. o Department and Fund budgets will include overhead and full cost allocation activity. o Reports on revenues and expenditures will be prepared at least quarterly for the General Fund and made available to the Council. Staff will also make available to Council revenue and expenditure reports on a quarterly basis for all major funds. o Biennial budgets should provide for design, construction, maintenance and replacement of the City’s capital, plant, and equipment consistent with the Capital Improvement Plan. o The City will develop an analysis of equipment replacement and maintenance needs. This analysis will be to more accurately project the life cycle of the equipment and will attempt to update the results consistent with the budget development process. o Inter-fund transfers and/or loans will be completed only after Council approval or inclusion in the adopted budget or subsequent amendment. o Recurring operating expenditures will be funded by recurring operating revenues. One- time revenues will not be used to support on-going needs, unless otherwise budgeted or approved by Council. o City-operated utilities should show positive net operating results, unless otherwise budgeted or approved by Council. Reserve Policies and Goals – Financial best practices dictate that the City should have a reasonable amount of resources in reserve to address unanticipated declines in revenue. Adequate reserve levels are a necessary component of the City’s overall financial management strategy and a key factor in external agencies’ measurement of the City’s financial strength. In general, the City shall support ongoing operations with ongoing revenues, but may use reserves on a one-time basis to support City services pending the development a longer-term financial solution. Reserves help mitigate the effects of an economic downturn or other unanticipated events on revenue growth. o Provide sufficient cash flow to meet daily financial needs. o All expenditures drawn from reserve accounts shall require prior Council approval unless previously authorized by the City Council for expenditures within the City’s annual budget.   53  o If reserves fall below required levels as set by this policy, the City must include within its annual budget a plan to restore reserves to the required levels. o General Fund: Reserves should be maintained to at least 60 days of average operating expenditures, unless otherwise adopted in the budget or otherwise approved by Council. o The City will review annually the reserve level required to meet cash flow needs. o Utility Fund and non-major Enterprise funds: Reserves should be maintained at 45 days of operating expenditures, unless otherwise adopted in the budget. o Debt Service Fund: Reserves should be maintained at an average of one year’s debt service payments for all debt, except assessment debt, or all statutorily required reserve funds to guarantee debt service, whichever is more. o Medical/Dental Insurance Fund: Reserves should be maintained at an amount equal to 16 weeks of budgeted expenses. Capital Improvement Plan (CIP) – The CIP is a six-year plan for capital and major improvements that support the City of Pasco’s current and future population and economy. The City’s CIP is a long-range schedule of proposed public facilities, infrastructure and major projects, which includes estimated costs and sources of funding over a six-year period. The CIP is updated annually for the purpose of confirming and/or reorganizing projects on a priority basis and to prepare the Capital Projects Budget. The Council’s adoption of the CIP in no way constitutes an appropriation of funds to a specific project. o The City will make capital improvements in accordance with an adopted Capital Improvement Plan as budgeted within the current biennial budget. o The City will determine the most cost-effective financing method for all new projects. o For each capital project and for each year of the six-year planning period, the CIP shall include an estimate of the cost of construction, an estimate of the annual O & M impact, and anticipated sources of funding. o The CIP shall be prepared and submitted to the City Council as part the proposed biennial operating budget. o Reports on the status of projects included in the CIP shall be prepared and presented to the City Council annually. o These reports will highlight the status of project construction, scheduling, spending, funding and discuss any significant issues or trends that may affect the ability of the City to stay within budget. Equipment Replacement – The City’s physical assets, such as vehicles and buildings, represent a significant investment of resources. Timely maintenance and replacement of these assets at the end of their useful lives is necessary. This enhances reliability, quality of public services, and supports safety for the public and employees. o The City will maintain a comprehensive inventory of its physical assets, including useful life, original purchase date and cost, information on its general condition, and the estimated value of replacement.   54  o The City will maintain a replacement schedule by physical asset indicating the replacement cost and its corresponding source of funding. The replacement schedule will be reviewed and budgeted as part of the City’s biennial budgeting process. o The City will maintain its physical assets adequately to protect the City’s capital investment. Adequate maintenance will further minimize unnecessary future repair and replacement cost. o Equipment reserve funds shall be maintained at levels sufficient to meet scheduled equipment replacement, ensure safety and to prevent a deterioration in City assets. Revenue Policies Service demands require that an adequate revenue stream be maintained. A diversified and stable revenue structure will be maintained to shelter the City from fluctuations in any single revenue source. City funds will be prudently invested to provide for sufficient liquidity to meet cash flow needs and provide interest earnings. The following, in conjunction with the City’s Revenue Guide in the Appendices, will serve as guidelines for maintaining a stable revenue stream: o The City will seek to avoid dependence on temporary or unstable revenues to fund recurring/basic municipal services. o The City will proactively compete for its fair share of available State and Federal revenues. The City will diligently collect revenue due and ensure compliance with revenue regulations. o The City will establish all user charges/fees at a level related to the cost of providing the service and within policy parameters established by City Council. o At least every odd numbered year, the City will review user fees to assess for the effects of inflation and other factors as appropriate. The City will set fees and user charges for enterprise funds at a level that fully supports the total direct and indirect cost of the activity, including the cost of annual depreciation of capital assets. Expenditure Policies The City shall authorize only those ongoing operating expenditures that may be supported by ongoing operating revenues. Before the City undertakes any agreements or purchases that would create fixed or ongoing expenses, the cost implications of such shall be analyzed and reviewed. o Emphasis shall be placed on improving productivity, workplace innovation and program evaluation, as well as alternative means of service, rather than adding to the work force. o The City shall invest in technology and other efficiency tools to ensure high productivity. o Enterprise Fund expenditures shall be fully supported by their own rates, fees and charges and not subsidized by the General Fund without authorization of the City Council. The Enterprise Funds shall pay their share of overhead costs and services provided by the General Fund.   55  Debt Policies The City recognizes that prudent use of its credit can facilitate construction of essential capital improvements and services while sharing the costs of those improvements between current and future beneficiaries. The intent of the Council is that the City shall manage its long-term debt in a manner designed to utilize its credit to optimize City services while balancing debt levels and annual debt service obligations. The following policies are intended to apply to all forms of debt. Short-term Debt and Internal Debt: o Short-term debt is defined as a period of less than one year. o The City may use short-term debt to cover temporary cash flow shortages. o The City may issue Inter-fund loans (internal debt) rather than outside debt to meet short-term cash flow needs. This includes “one-day” loans from the General Fund for year-end fund balance reporting. All Inter-fund loans with terms of three months or more will be subject to Council approval by ordinance or resolution and will bear interest. Long-term Debt: o Long-term debt is defined as a period of more than one year. o Long-term debt service payments will not exceed the expected life of a project. o The City will determine whether self-supporting bonds (such as special assessment improvement district bonds) are in the City’s best interest when planning to incur debt to finance capital improvements. o Prior to the decision to issue general obligations debt, which is an obligation against the general taxing authority of the City, the feasibility of alternative methods of financing using special assessments, fees/charges and special revenue debt, should first be determined. General Accounting, Auditing and Financial Reporting Policies The City of Pasco recognizes the need for ensuring accountability for the collection, management and expenditure of all public funds under its jurisdiction. Strong accounting practices and financial reporting is essential in ensuring compliance with governing laws, ordinances and procedures. Further, this allows for timely and accurate reporting to City officials, City Council and the public. o The City will establish and maintain a high standard of internal controls and accounting practices. o The accounting system will maintain records on a basis consistent with accepted standards for local government accounting and the State of Washington Budgeting, Accounting, and Reporting Systems (BARS). o Annual financial reports will present a summary of financial activity by major types of funds. Such reports will be available via the City’s website. o The annual financial report shall conform to Generally Accepted Accounting Principles (GAAP) and be in the form of a Comprehensive Annual Financial Report (CAFR) as described by the Government Finance Officers Association (GFOA).   56  o A fixed asset system will be maintained to identify all City assets, their location, and condition. o The City will strive to maximize the return on its investments with the primary objective of preserving capital and use prudent investment practices as detailed in the City’s Investment Policy. o The criteria for managing the City’s investment portfolio shall be: a) to maintain liquidity to meet the City’s cash needs, b) to minimize potential market risks, and c) to maximize investment returns. o The City will deposit all funds within 24 hours of receipt as required by the State Constitution. The City will ensure that City records are audited annually, which will result in the issuance of a financial opinion. The results of such audit are to be available to the public via the City’s website.   57  FINANCIAL DATA The City’s 2021-2022 Biennial Budget represents a financial plan that provides detailed estimates of revenues and expenditures by fund, necessary to finance essential City services. With a focus on sustainability, available reserves are utilized to fund expenditures that support City Council goals. This section of the budget provides a combined view of both past and anticipated future revenue and expenditures for all funds and provides a descriptive narrative of the overall assumptions and trends that influenced the creation of this budget. In the sections that follow there is a detailed revenue analysis for each fund type along with tables and graphs for better visualization. Financial Analysis REVENUE – ALL FUNDS Revenues 2017 Actual 2018 Actual 2019-2020 Budget 2021-2022 Budget Taxes 37,780,892 38,788,691 81,736,607 88,770,677 Licenses & Permits 2,761,247 3,142,800 5,642,396 6,907,059 Intergovernmental 14,088,865 14,988,218 32,641,667 34,950,722 Charges Goods & Services 55,516,483 56,280,731 118,923,617 127,073,280 Fines & Penalties 960,287 1,071,817 2,072,200 2,826,354 Miscellaneous Rev 4,099,973 4,379,009 53,068,319 77,370,288 Transfers in 6,531,386 3,473,741 37,881,366 19,916,986 Other Source 12,778,652 4,876,354 32,172,398 7,058,981 Total Revenues & Other Financing Sources 134,517,785 127,001,361 364,138,570 364,874,347 Budgeted Beg Fund Balance - - 86,436,391 97,881,361 TOTAL AVAILABLE RESOURCES $134,517,785 $127,001,361 $450,574,961 $462,755,708   58  Tax Revenue Tax revenue makes up the City’s second largest revenue source at 23%. The City’s tax revenues include Retail Sales Tax, Property Tax, Utility Tax, Real Estate Excise Tax, Lodging Tax, Gambling Tax and Admission Tax. In the 2021-2022 biennium, the General Fund will receive 92% of the City’s tax revenue, which is necessary to fund essential City services. Since 2014, the City has experienced a surge in residential and commercial construction and, subsequently, a significant growth in Retail Sales Tax. In 2019, Council approved the levy of banked Property Tax to provide ongoing funding to replace/relocate several aged City facilities. The City’s Special Revenue Funds receive tax revenues from Utility Tax, Lodging Tax and Real Estate Excise Tax. Tax revenue is expected to continue the current trend, fueled by construction and the additional property tax. License and Permit Revenue The license and permit revenue is comprised largely of Building Permit revenue, Animal and Business Licenses, Franchise Fees and Industrial Discharge Permits for wastewater. The General Fund is expected to receive 81% of the City’s total license and permit revenue for the next biennium, which consists of $3.7M in Building Permit revenue, $1.5M in Business License revenue and $381K in Animal Licenses. The Street Fund receives Franchise Fees and Street Permits that make up 12% of the 2021-2022 license and permit revenue and Enterprise Funds receive about 8% of the revenue from Industrial Discharge Permits. The City anticipates the current upward trend of this revenue will continue through the 2021-2022 biennium. Intergovernmental Revenue Intergovernmental revenue consists primarily of Federal and State grants and other governmental contributions. This category makes up 9% of the City’s total revenue. The General Fund accounts for approximately 13% of intergovernmental revenue, which is comprised of PUD Privilege allocations, liquor revenues and public safety grants. Street and Arterial Street Funds receive 8% of intergovernmental revenue from the Motor Vehicle Excise Tax paid to the State and allocated to cities on a per capita basis. Other revenues in this category include Community Development Block Grant Funds and Multi-Modal transportation revenues distributed by the State. The City has been proactive in seeking grants and other contributions, thus anticipating continued increase in this revenue. Charges for Goods and Services The City’s largest source of revenue comes from charges for goods and services, comprising 35% of the City’s total revenue. The Enterprise Fund receives approximately 50% of the total revenue in this category, providing multiple utility services to the citizens. The General Fund receives approximately 12% of charges for services payments for recreational services, plan check fees, reimbursement for public safety services, and planning and inspection charges. Special Revenue Funds contribute 19% of the revenue to charges for goods and services, primarily from impact fees and ambulance transport and monthly utility fees. Internal payments for cost allocation, medical premiums, vehicle replacement, and vehicle O & M make up 24% of the City’s charges for goods and services. The City anticipates the current upward trend of this revenue will continue through the 2021-2022 biennium, as it is closely tied to the anticipated population growth for the City.   59  Fines and Forfeitures Fines and Forfeitures make up less than 1% of the City’s total revenue. The City does not anticipate much change in this revenue as it has been historically stable and minimal. This revenue is mainly comprised of traffic and civil infractions. The Revolving Abatement Fund accounts for 10% of Fines and Forfeitures, while the General Fund makes up 90% of the total. Miscellaneous Revenues Investment income, donations, leases and rentals, and the sale of surplus goods traditionally makes up the bulk of revenue from Miscellaneous Revenue. 91% of budgeted Miscellaneous Revenue is for Capital Improvement Plan projects that hope to secure a permanent funding source in the 2021-2022 biennium. Of the 91% unsecured revenue, 85% is from utility fund and is expected to be secured via grants, low interest loans, or revenue bonds. Once a funding source is identified, the budget will be transferred to the appropriate source. Transfers In Transfers between funds are budgeted for grant-related and one-time programs, ongoing subsidies and approved capital projects. In the 2021-2022 biennium, 19.9M of transfers are budgeted for capital projects. These transfers are coming from Arterial Streets, Overlay, Park Development and Capital Improvement Funds to provide funding for multiple Streets, parks and facilities projects. These transfers make up 69% of the revenue in the category for the 2021-2022 biennium. It is important to remember that each of City’s funds act as a separate entity and transfers between them need to be accounted as such. Other Financing Sources Other financing sources make up 2% of the City’s overall revenue in the 2021-2022 Biennial Budget. These revenues consist of capital contributions, inter-fund loan proceeds and repayments and bond issues or other financing proceeds. Capital contributions and inter-fund loan repayments make up the majority of the budget for this revenue.   60  CAPITAL PROJECT 9% ENTERPRISE FUND 39% GENERAL FUND 31% INTERNAL SERVICE FUNDS 6% SPECIAL REVENUE FUNDS 15% BUDGETED REVENUE - ALL FUNDS   61  EXPENDITURE – ALL FUNDS Salaries and Benefits Salaries and benefits are budgeted at approximately $99.27M or 26% of total budget in 2021- 2022 biennium. The City’s labor force includes members of four bargaining unions. All but one of the labor agreements have been settled. The City is currently in negotiation with the firefighter labor union. The most recent collective bargaining agreement for fire services will expire as of December 31, 2020. Five new positions are proposed in the 2021-2022 biennium to support City’s IT infrastructure, SCADA systems, scheduled Public Works projects, as well as public services like at Municipal Court. Supplies Citywide supplies account for 4% of the 2021-2022 budget. There is a slight increase from prior years due to an increase in cleaning supplies resulting from the Coronavirus Pandemic. The supplies budget is $13.5M which includes items like pens and paper, business forms and Expenditures 2017 Actual 2018 Actual 2019-2020 Budget 2021-2022 Budget Salaries & Wages 28,961,637$ 30,498,231$ 65,813,141$ 73,538,787$ Personnel Benefits 10,799,045 10,295,557 24,263,254 25,733,712 Supplies 5,349,495 5,339,941 11,910,790 13,524,417 Services 31,633,786 34,286,110 71,415,878 75,345,611 Transfers & Pass Through 6,531,385 3,551,967 39,325,366 19,916,986 Capital Outlay 18,947,206 17,014,694 117,323,332 128,256,258 Debt proceeds 6,931,444 6,703,861 20,376,554 14,496,089 Interfund Payments 8,524,858 7,704,857 17,407,384 17,949,984 Budgeted End Fund Balance - - 82,739,262 93,993,864 ALL FUNDS TOTAL 117,678,856$ 115,395,218$ 450,574,961$ 462,755,708$   62  small equipment. Other examples of supplies include purchases of fuel, laboratory and medical supplies, inventory items for equipment maintenance, and uniform purchases. Services and Charges While City Staff can perform some services internally, at times it is necessary for the City to receive services from an outside provider. Some of these services are rendered in the form of ongoing, routine support. For example, banking services and utilities supplied to our facilities and parks. Other services are unique and the result of a special agreement. For example, entering into a contractual agreement for a consultant to perform a rate or cost of service study. The 2021-2022 budget includes $47.9M and $45.5M of service type expenditures, respectively. Transfers and Pass Through Transfers and pass through expenditures are budgeted at $19.9M in 2021-2022 biennium. The transfers occur between one City fund and another City fund. Primarily, transfers take place to fund capital improvements that are accounted for in our Capital Improvement Fund. Annual changes in capital projects, as outlined in our Capital Improvement Plan, account for the fluctuation of planned transfers from one year to the next. At a much smaller degree, transfers occur when the General Fund is supporting another activity. One example of this support is the General Fund’s subsidy of the Ambulance Fund. Finally, there are certain receipts that are passed through a City fund. For example, Hotel/Motel Excise Tax, budgeted at $755K biennially, is classified as a pass through. It is remitted to the City and passes through to other beneficiaries. Capital Outlay As touched upon in the transfers and pass through narrative above, the City completes a Capital Improvement Plan annually. Based upon this planning effort, the City prioritizes capital spending. When deemed prudent, large scale, capital improvement projects are budgeted. For the budget years 2021-2022, the City has included $128.3M of capital spending citywide. In the non-utility funds, the total budgeted projects are $41.2M, or 32%, of the total capital budget. Some of the larger projects include the construction of two Fire Station 84, Sacajawea Levee Lowering, Sandifur Parkway Widening, and numerous, large scale infrastructure improvements. The Utility Fund projects account for $87.0M, equal to 68% of the total capital outlay budget of 2021-2022. Examples of the larger projects budgeted in the Enterprise Fund are improvement to Process Water Reuse Facility, Waste Water Treatment Plant, Butterfield Water Treatment Plant, as well as other additions and improvements to water, sewer conveyance systems. Any capital outlay allocations from 2019-2020 biennium unspent during the allocation period will be carried over to 2021-2022 and is not included in this budget. Debt Service The Citywide cost of debt service payments budgeted for the biennium is $14.5M in 2021- 2022 biennium. The majority of the budget is related to outstanding bonds and the accompanying payment of principal and interest. When available, the City may choose to self- fund projects via inter-fund borrowing. Like loan agreements with an outside entity, interest   63  is charged. However, with an inter-fund loan, the City earns the interest income in the lending fund. Inter-fund Payments Payments to Internal Service Funds total $17.9M in 2021-2022 biennium. Included in these payments are equipment repair and replacement of fleet vehicles and equipment, service supplied for technology support from the Information Services Division, management of self- insured health and welfare programs, professional services of the Finance and Engineering Divisions, and Facilities maintenance and repair charges. CAPITAL PROJECT 9%DEBT SERVICE 0% ENTERPRISE FUND 39% GENERAL FUND 32% INTERNAL SERVICE FUNDS 6% SPECIAL REVENUE FUNDS 14% BUDGETED EXPENSES - ALL FUNDS   64  Revenue Source Analysis for Each Major Fund Category GENERAL FUND REVENUES The graph below portrays budgeted General Fund revenues by source, expected to be available to fund General Fund programs for the 2021-2022 biennium. The table reflects the revenue by source from 2017-2022. General Fund Revenue 2017 Actual 2018 Actual 2019-2020 Budget 2021-2022 Budget Taxes 33,329,260 34,494,612 74,418,849 81,556,087 License & Permits 2,177,234 2,640,720 4,459,000 5,565,781 Intergovernmental 2,130,300 2,376,588 4,737,868 4,684,217 Charges Goods & Services 6,932,637 7,285,865 15,417,018 15,641,239 Fines & Penalties 788,474 943,321 1,811,200 2,546,354 Miscellaneous Revenue 644,161 1,638,358 1,195,800 1,455,910 Total Revenue 46,002,066 49,379,464 102,039,735 111,449,588 Other Financing Sources 638,000 376,545 17,705,200 1,636,290 Beginning Fund Balance 14,473,467 13,500,000 13,290,429 26,967,000 Total Available Resources 61,113,533 63,256,009 133,035,364 140,052,878 Taxes: Sales Tax is the General Fund’s largest revenue stream and includes regular Retail Sales Tax, as well as Criminal Justice and Public Safety Sales Tax. The latter two taxes are mandated to provide public safety services to the citizens of Pasco, while the regular Retail Tax funds all general services. Since 2014, Sales Tax revenues have trended upward, averaging more than 7% growth annually. This growth has been fueled by new construction and supported by the City’s many car dealerships. An 8.5% tax on gross revenues of all public utilities is paid to the City on a monthly basis. The City’s Water, Sewer, Irrigation, Stormwater and Reuse utilities   65  are subject to Utility Tax, as well as companies who provide natural gas, electricity, phone, cable and garbage services in the City limits. The General Fund receives 88.23% of Utility Tax revenue, while the Street Fund receives 2.35% and the Overlay Fund receives 9.42%. However, starting 2019 all taxes are deposited directly to General Fund and transferred out to Street and Overlay funds as a transfer out. Although new home construction generates more users, for many utilities, extreme cold and hot weather are bigger factors in revenue growth. The City has seen a steady decline in telephone utility tax since 2014. This is likely due to the competition of many service providers and the diminishing use of land lines. Although Utility Tax revenue reflects very measured growth, it is a stable source of recurrent revenue to the City. Statutory mandates only allow the City to levy a 1% Property Tax annually, plus the value of new construction. Property tax revenue increased by 19% from 2014 to 2018 due to healthy levels of new construction. Council has forgone statutorily allowed 1% annual increase and banked the capacity since early 2000’s. for tax collection year of 2019, Council utilized $1.86M of banked Property Tax capacity. This resulted in 28% increase in property taxes in 2019. About 2% of the total tax revenue is comprised of Gambling, Leasehold, and Admission Tax. Taxes make up 74% of the 2021-2022 General Fund revenue, a share that is higher than the past average of 54%, due to one-time proceeds from a future LTGO bond in 2019. Licenses and Permits: Building Permit sales is expected to provide about 67% of the License and Permit revenue in the 2021-2022 biennium. Building Permit revenue increased by 29% in 2017 and has stayed consistent through 2020 year-to-date. With new construction thriving, Building Permits are expected to meet or exceed current levels in 2021 and 2022. Business Licenses make up the second largest component of Licenses and Permits with 26% of the revenue. In 2017, the City recognized a 21% increase in Business Licenses, the first significant increase in license revenue in several years. In 2018, the City restructured the fees for business licensing, charging a base rate, as well as a per employee assessment. In addition to the restructuring, the City also implemented the mandatory State of Washington Business Licensing Program early. These changes have brought about a noticeable influx in licensing revenue for year-to-date 2020 and the trend is expected to continue in future years. Animal Licenses make up 7% of the revenue. These collections experienced a downward trend resulting from enforcement changes and minor restructuring of the animal control program. Intergovernmental Revenue: In the General Fund, the intergovernmental revenues are comprised of State and Federal grants, Liquor Excise Tax and Liquor Board profits, PUD Privilege Tax and City/County assistance payments. The City will receive $333.3K from the COPS Grant in this biennium for the hiring of four new police officers, $416.0K from the Assistance for Firefighters grant to purchase self-contained breathing apparatus (SCBA), as well as, $100K from Department of Ecology for marine spill response. 2022 is the last year of reimbursement for COPS grant, after which, the City is expected to bear full costs of additional FTEs. Liquor taxes and profits will make up 43% of the intergovernmental revenue in the 2020-2021 biennium, contributing $2.0M in revenues. Grant revenues can vary significantly from year to year; however, the local and State Public Utility District (PUD) taxes and the liquor revenues provide a stable source of recurring revenue in this category. PUD Privilege tax is expected to decline in 2021 due to account for changes in revenue collection at the State level.   66  Charges for Services: The largest source of revenue in charges for services in the General Fund is the reimbursement of administrative services and engineering charge backs from other funds. In 2017, a Cost Allocation Study was completed and a new cost allocation model for administrative services was put into service. The General Fund expects to receive $6.3M in administrative services revenue. Engineering charge backs make up $3.7M of the budgeted 2021-2022 revenue in this category. Other revenues include Plan Check fees, Recreation Programs, and reimbursement of outside services provided by Police and Fire employees. Charges for services make up 14% of the General Fund revenue. Fines and Forfeits: Traffic infractions dominate this category, providing 91% of the revenue. In 2019, if Council approves the City collaborating with Redflex to install red light cameras at two major intersections, there is the expectation that the cameras will reduce incidents leading to vehicular conflict at these intersections and the City will see a negligible revenue from this endeavor. Additional service revenues include trauma care and court-related fines. Miscellaneous Revenue: This category is comprised of lease and rental income from City facilities and parks, insurance refunds and other reimbursements, donations, sale of surplus and interest income. Other Financing Sources: In the General Fund, transfers, sale of assets and debt issuance are the primary revenues in other financing sources. Revenues in this category tend to vary significantly from one year to the next because of one-time revenues. Consistent sources of revenue in this category are “transfers in” from the Boulevard Fund and the Block Grant Fund.   67  EDGAR BROWN STADIUM SOFTBALL COMPLEX AND GESA STADIUM     68  SPECIAL REVENUE FUNDS The City has 24 Special Revenue Funds presented in this budget. Ambulance Service, Arterial Street, Street, Overlay, and Park Development are some examples of Special Revenue Funds (for a full list see page 178). These funds are used to account for the proceeds of specific revenue sources that are legally restricted to expenditure for specific purposes. The graph below portrays budgeted revenues by source for all Special Revenue Funds for the 2021-2022 biennium. The table reflects the revenue by source from 2017-2022. Charges for goods and services are the dominant revenue stream in this category, making up more than 54% of overall revenues. Special Revenue Funds 2017 Actual 2018 Actual 2019-2020 Budget 2021-2022 Budget Budgeted Beg Fund Balance - - 23,352,545 26,072,135 Taxes 4,451,632 4,294,079 7,317,758 7,214,590 License & Permits 398,420 306,280 767,000 813,400 Intergovernmental 2,628,512 4,216,737 9,083,799 10,392,515 Charges Goods & Services 11,488,180 10,867,459 24,566,520 26,340,795 Fines & Penalties 171,813 128,496 261,000 280,000 Miscellaneous Revenue 1,796,810 2,034,349 3,478,638 3,384,065 Other Sources 310,080 237,159 2,057,000 64,291 Transfer In 1,373,163 829,931 3,923,616 4,973,224 Total Revenues $22,618,610 $22,914,490 $74,807,876 $79,535,015 Taxes: Real Estate Excise Tax (REET) makes up 61% of the tax category for the Special Revenue Funds, followed by Utility Tax with 29% and Lodging Tax with 10%. REET revenues increased insignificantly over the last 5 years, almost tripling in amount. This is not only due to strong construction activity during the same period, but also significant increase in housing prices. Tourism Promotion Area (TPA) funds are expected to lower in 2021 with expectation of full recovery by end of 2022.   69  Licenses Permits: The Street Fund receives franchise fees from cable providers and issues Street and curb permits to generate the license and permit revenue for Special Revenue Funds. These revenues are relatively stable and are not inclined to vary significantly from year to year. Intergovernmental Revenue: These revenues are comprised of State and Federal grants and entitlements and certain State shared revenues. The bulk of the revenue consists of Motor Vehicle Excise Tax (MVET), Multi-Modal Funds, and other State and Federal grants and program revenues. In the 2020-2021 Biennial Budget, the Ambulance Fund budgeted $3.7M in Ground Emergency Medical Transportation (GEMT) reimbursements. The GEMT grant is a new revenue source to the City. The program helps to supplant lost ambulance revenues in lower income cities and are an integral part in offsetting fund losses and sustaining the ongoing operation of the Ambulance Fund. Due to the recently established nature of the program and staggeringly complicated Medicaid reimbursement program, staff is reserving portion of revenue as reserves until a full audit/review of the City’s reimbursement is made by the Washington State Health Care Authority. Street and Arterial Street Funds estimate receiving $2.9M in MVET revenue, which is a decrease in budget revenue of $3.3M in 2019-2020 biennium anticipating reduced miles driven as well as fuel efficient vehicles. while the Community Development Block Grant Fund expects to receive $2.4M in program revenues for the 2020-2021 biennium. The upward trend in this category is primarily due to the new revenues in the Ambulance Fund. Charges for Goods and Services: The Special Revenue Funds provide a vast and varied array of services that contribute to this revenue. Revenues include traffic impact fees, ambulance monthly utility and transport charges, park impact fees, golf charges, recreation program fees, sale of gravesites, headstones and cemetery services, abatement services and senior health services. In addition to these charges, the City receives approximately $5.0 biennially in pass through revenues for the School Impact Fees. Most revenues in this category grow at a moderate rate, led by population and economic growth. The Ambulance Fund contributes 50% of the revenue in this category and is the major source of growth in recent and projected future years. Significant population growth in recent years made it necessary to increase staffing in the Ambulance Fund and, subsequently, to increase rates. For example, ambulance utility rates increased 4% in both 2019 and 2020. Rate increases are not budgeted for 2021-2022 biennium. Fines and Forfeits: The Revolving Abatement Fund is the sole contributor to this revenue. The City’s Code Enforcement Division cites homeowners for code violations of hazardous and unsightly properties and, in severe cases, where the owner does not respond to citations, the City corrects the problem and imposes a fine to reimburse the cost of cleanup. Revenues in this category have maintained steady growth. Miscellaneous Revenue: Miscellaneous leases and rentals account for 83% of the revenue in this category. The Economic Development Fund receives approximately $1.9M biennially, or 66% of total, in lease revenue from City-owned crop circles. The crop circle leases are negotiated each year, but most other leases have a multi-year contract with modest annual increases. The Golf Course Fund receives approximately $560K biennially in golf cart rentals and golf cart storage leases. The Multi-Modal Fund receives monthly lease revenue from   70  Amtrak, Greyhound and other privately owned bus companies. Other revenues come from the lease of the post office, the baseball stadium lease, a marina lease, short term rental of City facilities, donations and investment interest. Other Financing Sources: Transfers are the predominant revenue in this category, with an occasional sale of assets and debt issuance. The City does not anticipate any sale of assets or debt issuance in the 2021-2022 biennium. There is an increase of approximately $1.3M annually for the Street Fund and Street Overlay Fund, combined, due to a change in State reporting requirements. Historically, a portion of utility tax revenue was recorded as tax revenue in these funds. However, the State now requires all tax revenue to be recorded in the General Fund, then transferred to the appropriate Special Revenue Funds. INTERNAL SERVICE FUNDS The City uses Internal Service Funds to account for goods and services provided by one fund to other City funds. The Medical Service Fund collects medical and dental insurance premiums to pay claims for the City’s self-insured healthcare plan. The Equipment Replacement Funds collect monthly set aside payments to purchase and replace City vehicles and to fund rental fleets. The Vehicle Operating and Maintenance Funds are reimbursed for costs associated with repairing and maintaining the City’s fleet of vehicles. The graph below portrays budgeted revenues by source for all internal service Funds for the 2021-2022 biennium. The table reflects the revenue by source from 2017-2022.   71  Internal Service Fund Revenues 2017 Actual 2018 Actual 2019-2020 Budget 2021-2022 Budget Charges for Goods and Services 11,449,777 10,130,577 21,316,173 21,231,033 Miscellaneous Revenues 305,020 367,006 261,556 293,110 Total Revenue 11,754,797 10,497,643 21,577,729 21,524,143 Other Financing Sources 525,938 89,567 144,440 - Beginning Fund Balance 15,989,222 18,261,740 20,439,439 16,259,356 Total Available Resources 28,269,957 28,487,739 42,161,608 37,783,499 Charges for Goods and Services: Medical and dental premiums make up 58% of this revenue, followed by vehicle replacement at 25% and vehicle operating and maintenance at 16%. Medical and dental premiums have been stable with no recent rate increase or planned increases. In 2020, the City reassessed the replacement schedules and corresponding estimated purchase values which resulted in increased replacement assessments to funds city-wide. Consequently, revenues are expected to increase by 29% for the Equipment Replacement funds. Miscellaneous Revenues: These revenues are comprised of investment interest, insurance recoveries, and refunds and reimbursements. In recent years, certain inter-fund revenues classified as miscellaneous revenues were reclassified as charges for goods and services. Other Financing Sources: Inter-fund loan repayments and transfers make up the revenues in this category. There no outstanding inter-fund loans in the Internal Service Funds. Beginning in 2019, most functions of the Vehicle Maintenance Funds will be combined in one fund. This change results in a decrease of transfers between funds. CONSTRUCTION FUNDS The City has one Governmental Construction Fund that accounts for general projects identified in the capital budget. For the 2021-2022 biennium, budgeted projects include two Fire Stations, a remodel of City Hall, Chapel Hill LID, and many other parks, facilities and Street projects. The graph below portrays budgeted revenues by source for the construction Fund for the 2021-2022 biennium. The table reflects the revenue by source from 2017-2022. Starting with the 2021-2022 biennium, the City will proceed with the carryover process where funds for capital projects are carried over from year to year when there is variation from the biennium budget, rather than including estimates of carryover in the biennium budget. This will result in an additional process of capital carryover in early 2021, but will also provide clarity to the capital budgets.   72  Intergovernmental Revenue: These revenues are comprised of State and Federal grants and entitlements that are typically used to fund transportation and recreation projects. All budgeted grant revenue is intended for transportation projects. The City will utilize $15.6M in grant revenues to help fund two transportation projects and continue the Citywide Traffic Signal Upgrades in the 2021-2022 biennium. Miscellaneous Revenue: The miscellaneous revenue in the Construction Fund budget for the 2021-2022 Biennial Budget is comprised of two types of revenues. Partnerships and private donations comprise $620K of revenues for the 2021-2022 biennium, while $4.9M is budgeted as a placeholder for unsecured projects. Management is currently seeking methods of funding these projects in the 2021-2022 biennium and will budget them as unsecured until a funding source has been identified, at which time a budget transfer will be initiated to move the funding from miscellaneous to the appropriate category of revenue. Other Financing Sources: “Transfers in” make up 100% of the revenue in this category. A $3.9M transfer from General Fund will fund the replacement of one fire station, addition to an existing fire station and various improvements to the fire training center. This funding comes Construction Fund Revenue 2017 Actual 2018 Actual 2019-2020 Budget 2021-2022 Budget Intergovernmental Revenues 3,192,349 7,273,596 17,262,000 15,666,000 Miscellaneous Revenues 35,000 -26,133 15,788,500 5,576,047 Total Revenue 3,227,349 7,247,463 33,050,500 21,242,047 Other Financing Sources 4,481,971 2,332,477 40,558,244 13,674,000 Beginning Fund Balance 225,500 556,633 - - Total Available Resources 7,934,820 10,136,573 73,608,744 34,916,047   73  from a LTGO bond issued in 2019. Overlay, Arterial Streets and Traffic Impact Funds will transfer approximately $6.9M to fund transportation projects and the Annual Pavement Preservation Program. Transfers from the Capital Improvement Fund in the amount of $1.9M will fund pedestrian and bicycle path projects as well as portions of transportation projects in the 2021-2022 budget. Revenues in this category can vary significantly depending on the availability of funds. ENTERPRISE FUNDS The City has one Utility Fund that incorporates the activity of all utility type departments that the City operates. This fund includes the operations of water, sewer, irrigation, stormwater and a process water reuse facility. The following table and graph reflect the amount of revenues received by major source. Intergovernmental: This source of revenue is Federal and State grant and program revenue. In support of construction of Columbia East Lift Station and Forcemain, benefiting the reuse Enterprise Funds Revenue 2017 Actual 2018 Actual 2019-2020 Budget 2021-2022 Budget License & Permits 185,593 195,800 416,396 527,878 Charges for Service 25,628,338 27,975,857 57,583,906 63,818,213 Miscellaneous 285,358 607,302 32,209,789 66,162,454 Other Sources 11,826,084 4,376,651 4,727,700 6,449,440 Transfer In 65,000 --- Intergovernmental 6,074,201 1,047,883 1,411,000 4,025,002 Total Revenue 44,064,574 34,203,493 96,348,791 140,982,987 Budgeted Beg Fund Balance - - 22,737,575 22,235,773 Total Available Resources - - 119,086,366 163,218,760   74  facility, this budget includes revenue to be supplied by a federal EDA grant in the amount of $3.425M. Following past years’ contribution via a Franklin County Economic Development grant, the PWRF has budgeted to receive $500K to be used toward primary treatment improvements. Additionally, the stormwater utility anticipates the continuation of an operating grant of $50K annually from the Department of Ecology. Charges for services: Charges for services are the fees charged to customers for providing water, sewer, stormwater and irrigation services. The process water reuse utility charges certain commercial users to dispose of industrial wastewater that comes from food processing facilities. These recurring services provide a stable platform of utility revenue to fund operations. The City routinely undertakes rate and cost of service studies to establish rates for classes of service based upon equitable cost recovery and prudent system management. Charges for services revenue is approximately 46% of the budgeted 2021-2022 Enterprise Fund revenues. Exclusive of capital related revenues, charges for services revenue accounts for 98% of revenues. This biennial budget incorporates approved service rate increases of 3% annually for both the water and irrigation system services, 4% annually for the sewer system users, and 5% for the stormwater system service fees. In anticipation of growth continued customer growth related to construction, a factor of approximately 2% was incorporated during budget planning. Miscellaneous Revenue: This category of revenue includes charges associated with development (including fees charged to new users of the utility systems and the value of capital contributions from developers), investment income, special assessment principal and interest payments, tower rental to cell phone service providers, and infrequent activity that results from refunds, reimbursements or sales of surplus materials. Development charges are part of the permitting process for new utility infrastructure, which brings new utility accounts to the water and sewer systems. For the budget of 2021-2022 biennium, the development related activity anticipated accounts for $4.9M. A much smaller input to the budget, miscellaneous revenues not related to capital contribution, totals $288K. Other Financing Sources: The Enterprise Fund activities are capital intensive services. As part of the funding strategy toward the capital improvements necessary to support these systems, the fund issues bonds and enters loan agreements. Included in this revenue source are loan proceeds, revenue bond proceeds, state revolving loan proceeds and intergovernmental loans. Included in the 2021-2022 budget are intergovernmental loans totaling $1.5M for the primary treatment plant improvements for PWRF. Also reflected in this budget are unsecured inflows of approximately $65.9M. If successfully attained, these funding sources will support capital projects for the water, sewer and PWRF infrastructure systems. Included in this total are funds to be assessed as part of the Northwest Area Trunkline. When available, the City pursues low interest loans. This effort to pursue low interest support will continue into the new biennium. Based upon the success or failure of securing low interest funding, the priority and timing of associated capital projects will be determined. Although a rarity for the Enterprise Fund, transfers from other funds are included in this revenue category. For the budget year of 2021 -2022, no transfers are included.   75  OTHER FUNDS The City has two Fiduciary Funds that account for pension and OPEB expense of five pre- LEOFF 1 firefighters. It is estimated that the Pension and OPEB plans have sufficient assets to fully fund the plans and the only budgeted revenue is investment income and dividends. The City has a permanent Cemetery Endowment Fund that has assets set aside to maintain the cemetery grounds in future years. The only budgeted revenue in this fund is investment income. Debt Cities use various type of financing tools to pay for large infrastructure projects like water and sewer systems, fire and police stations, parks etc. Much like a private citizen, the City has a credit rating that indicates its ability to pay back the borrowed funds. Existing debt levels and future needs, as well as statutory limits on borrowing (see debt capacity section), dictate the City’s ability to issue new debt. Below are some of the major financing tools available to the City to fund large infrastructure projects: Bonds: The City Council may authorize the City Manager to sell bonds to raise revenue for capital improvements. Those bonds are sold on the open market in exchange for cash payments, essentially functioning as a loan for the City. In selling and managing bonds, the City seeks the advice of both a bond counsel and an outside financial advisor. Interest rates on bond payments are based on market conditions and the City’s bond rating, determined by private rating agencies. The City’s current bond rating for both General Obligation and Revenue bonds is AA-, last evaluated in 2019 and 2020 respectively by S&P Global. Unlimited Tax General Obligation (UTGO) Bonds: One of the most common methods of financing capital improvements for local governments is through the issuance of municipal bonds known as “Unlimited Tax General Obligation Bonds” or “UTGO Bonds.” The voters within the local government must approve UTGO Bonds. UTGO Bonds are secured by and payable out of annual property taxes, above and beyond general property taxes, unlimited as to rate or amount. In other words, a local government is obligated to levy excess property taxes at whatever rate is necessary to repay the UTGO Bonds. Further, UTGO Bonds constitute a general obligation of the local government, and, as such, the full faith, credit and resources of the local government are pledged for their repayment. The approval process requires local government voters to approve the bond ballot proposition at a properly conducted election. UTGO Bonds must be approved by 60% of the qualified voters within the local government. In addition, the total number of voters casting ballots at the election cannot be less than 40% of the number of votes cast in the last state general election. Further, a local government may only place a bond ballot proposition before its voters twice in any calendar year.   76  Voted indebtedness for cities may not exceed 2.5% of Assessed Value (AV) for general municipal purposes (any outstanding non-voted, or councilmanic debt is counted against this 2.5%), 2.5% for certain utility purposes, and 2.5% for certain parks, open space and economic development purposes. The total amount of voted and non-voted debt may not exceed 7.5%. The City has significant bonding capacity, with voted indebtedness being 0% in 2019. The City currently doesn’t have any UTGO bonds outstanding. The last UTGO bonds issued by the City were in 1999 to fund a library and a fire station. Limited Tax General Obligation (LTGO) Bonds: Limited Tax General Obligation Bonds are also called “councilmanic” bonds or non-voted debt. These bonds may be issued by a vote of the legislative body and require a majority support. Because the voters have not been asked to approve a tax increase to pay for the principal and interest, existing general Fund revenues must be pledged to pay the debt service on a LTGO Bond. The City issued $18,090,000 of LTGO bonds in 2019 to build two fire stations, improvements to the Gesa Stadium and the City’s contribution for the construction of the Tri-City Animal Shelter. Revenue Bond: Another debt financing option to finance projects for any City enterprise, which is self-supporting like utilities, is Revenue Bonds. Payment comes from user fees; so the debt is not backed by the full faith and credit of the City. Investors consider these somewhat less secure than general obligation bonds as well. Grants and Loans: Some of the funding for larger City capital projects comes from grants and loans made by Federal and State agencies. Almost all federal funds are ‘passed through’ a State Agency filter. Some of the major agencies involved in funding grants and loans are the Transportation Improvement Board (TIB), Washington State Recreation and Conservation Office (RCO), Water Resources Program, and the Department of Ecology. Parks and Transportation projects are the largest benefactors of such grants and loans to the City of Pasco. These funding options are typically of lower interest and can be obtained by either governmental or enterprise funds. On-Going Revenue: Revenue is created by services like water, sewer, and taxes, etc. These revenues are used to fund capital projects in their respective areas. The City follows the applicable regulation around Special Revenue Funds, Enterprise Funds and General Funds. Local Improvement District (LID): A Local Improvement District (LID) is a method by which a group of property owners can share in the cost of infrastructure improvements. LIDs can be used to help finance improvements including: Street overlays, repair, and construction; Street lighting; Utility expansion (Water, Sewer, Stormwater, Irrigation); Overhead power conversion to underground; Street beautification and revitalization projects; and Park construction and improvements.   77  DEBT CAPACITY The total indebtedness for general purposes with or without a vote cannot exceed 2.5% of the value of the taxable property within the City limits. The maximum limit for general- purpose debt without a vote (councilmanic) is 1.5%. Utility revenue bonds do not have such criteria, as utility Funds are treated as a business unit and debt can be issued if the rates can sustain debt service. The bond interest rates are driven by the total financial health of, not only the fund, but also the City’s residents and its future needs. Council has made some prudent financial decisions, which are reflected in the history of the City’s debt capacity. General-purpose bonded indebtedness capacity for the City for 2019 is $137,507,000 based on assessed value. The current general-purpose bond for the City is $26,125,000, or 19% of the maximum allowable debt. It is also important to note that cities historically go through cycles of debt incurrence with aging facilities, infrastructure and growth. During the last biennium, both general obligation and revenue bonds were issued. They are included in the table below. The bond issues are supportive of general fund building, specifically the construction of new fire stations, improvements to our local baseball stadium and the replacement of a fifty year old animal control shelter. Issuance of the revenue bonds was undertaken to complete significant improvements to our process water reuse facility. Helping offset the increased debt service added with this issuance, the final payment for the 0% 20% 40% 60% 80% 100%19941995199619971998199920002001200220032004200520062007200820092010201120122013201420152016201720182019Debt as a Percentage of Debt Limit   78  2011 LTGO issuance was made in 2020. This change releases approximately $530K annually. Concurrently, to take advantage of favorable interest rates, the proceeds of the 2020A Bonds were placed in an irrevocable trust escrow account to redeem all previously outstanding 2010A and 2009 Bonds. The debt service savings resulting from the 2020A refunding issue total $1.68M between the years of 2021 to 2029. The following table shows the principal and interest payments for the 2021-22 biennium. All funds with issued debt are included in this table. Please note that the table does not include anticipated debt issues as well as inter-fund loans. Debt Type Fund Description 2021 2022 Principal Interest Total Principal Interest Total LTGO General Fund 2015 LTGO Police Station 360,000 272,300 632,300 375,000 257,900 632,900 LTGO General Fund 2019 LTGO Fire Stations & Animal Shelter 465,000 791,750 1,256,750 485,000 773,150 1,258,150 Total for General Fund 825,000 1,064,050 1,889,050 860,000 1,031,050 1,891,050 LTGO Stadium Fund 2019 LTGO Gesa Stadium Improvements 50,000 78,750 128,750 50,000 76,750 126,750 Total for Stadium Fund 50,000 78,750 128,750 50,000 76,750 126,750 Revenue Bond Utilities 2013A Sewer Capital Projects 180,000 67,000 247,000 190,000 59,800 249,800 Revenue Bond Utilities 2013T Reuse Facility Capital Projects 490,000 207,131 697,131 505,000 189,045 694,045 Revenue Bond Utilities 2015 Water/Sewer Capital Projects and refunding (2002,2005,2007) 665,000 569,150 1,234,150 310,000 542,500 852,500 Revenue Bond Utilities 2017 Sewer Improvements - 362,915 362,915 - 362,915 362,915 Revenue Bond Utilities 2020A Water Refunding (2009) 397,361 169,434 566,795 409,048 153,539 562,587 Revenue Bond Utilities 2020A Water/Sewer Refunding (2010) 282,639 120,516 403,155 290,952 109,211 400,163 Revenue Bond Utilities 2020B Reuse Facility Capital Projects 375,000 477,414 380,000 472,865 852,865 HAEIFAC Loan Utilities Reuse Facility Expansion and Improvements 131,838 36,792 168,630 136,090 32,539 168,629 DWSRF Loan Utilities Columbia Water Supply Project 399,657 83,928 483,585 399,657 77,933 477,590 Total for Utility Fund $2,921,495 $2,094,280 $4,163,361 $2,620,747 $2,000,347 $4,621,094   79  Enterprise Funds – Working Capital The Utility Fund of the City of Pasco incorporates the utility-based based services provided to citizens and businesses. The utilities’ activity is accounted for on a different basis than the governmental services. The operation of the utility services relies upon extensive capital infrastructure. Unlike the governmental services of the City, the Utility Fund recognizes its capital assets and any associated liabilities as part of the value of the utility. This value, called its net investment in capital, however, is not available to fund future spending. Therefore, an important factor of sound budgeting is an understanding of our working capital. Working capital is the difference between the current assets and current liabilities. In establishing the budget for the coming biennium, the City considered the utility fund’s beginning working capital for 2018 as the available support. An important factor of budgeting in the Utility Fund is the adequate maintenance of any necessary reserves and proper accounting for any funds meant for specific purposes. Specifically, the Utility Fund must maintain a sufficient bond reserve to satisfy covenants related to outstanding bonds. Also, the Utility Fund receives revenues, and at times grant or debt proceeds, that are restricted to be used exclusively for capital purposes. By narrowing our focus to calculate the available ending fund balance, or the working capital plus and minus budgeted spending, the City is able to segregate the budget activity that will be rate reserve funded versus long term debt funded to assess and focus our budget planning efforts. It is the practice of the utility to undertake rate studies unique to each service. Based on a multi-year evaluation of system needs and cost trends versus anticipated growth in customer base, necessary rate changes are calculated. In recent years, the practice has been to approve multi-year rate increases. This methodology helps smooth out the impact of rate increases. The most recent approved increases include 3% annually for the water system and irrigation system services and 4% annually for the sewer system service. These scheduled rate increases extend through 2021. This biennial budget includes funding to support a new rate study for future planning. The water utility’s working capital is decrease rapidly. In the last biennium, in an effort avoid the addition of debt, and instead use funds available, large capital projects have been rate, or reserve, funded. This methodology continues into the budget presented for 2021 -2022. In spite of the larger levels of reserve supported capital improvements, our anticipated working capital as of the end of 2022 remains sufficient to support required bond reserves, as well as, an operating and maintenance buffer of approximately $1.5M. For the continued health of the utility, it will be necessary to address a sustainable level of rate funded capital as part of our 2021-2022 budgeted rate study. Similar to the water system, the irrigation utility service’s anticipated working capital decreases as of the end of 2022 based on planned capital improvement spending from rate reserves. A series of approved charge for service rate increases of 3% annually have helped offset the decrease. The end of this budget’s biennium results in an available anticipated working capital   80  balance equal to 20% of budgeted revenues, or approximately three times the utilities operating net income. As of the end of the budgeted biennium, the sewer service utility reflects a healthy working capital balance. A significant improvement in the utility’s working capital projection occurred with the extinguishment of two debt payments. This elimination of over $1.3 million annual payment frees operating income to be available for other purposes. The rate reserve balance, as compared to large pending capital needs in future years, will be evaluated as part of the sewer rate study planned in this coming biennium. Process Water Reuse Facility (PWRF) is both operated, and accounted for, as utility service. It is, however, a public/private collaboration to treat industrial waste of food processing facilities located in the City, thereby diverting this unique waste stream from our municipal Wastewater Treatment Plant. The participants of the PWRF support the costs of operations. Like the previously noted utility planning methodology, the stormwater utility revenue is reflective of a planned rate increase in this biennium. As such, the stormwater utility service maintains a working capital balance sufficient to support both the operational needs, as well as, planned capital improvements   81  Fund Balance Trends Fund Balance is a calculation of the difference between the assets and liabilities of a governmental fund. The governmental funds reported below are the General Fund and Special Revenue Funds. The General Fund accounts for all City activity not required to be accounted for in another fund, such as a Special Revenue Fund or a Proprietary Fund. Special Revenue Funds are used to account for and report specific revenue sources that are limited in use for a specified purpose. Finally, an Enterprise Fund is business-like and self-financing. Through prudent financial decisions from Council, implementation of Public Safety Sales Tax and rapid growth, the General Fund fund balance has been rising steadily since 2013. Construction of a Police Station from 2015 to 2017 has reduced the unrestricted reserves, but not significantly. The Council has made decisions to use fund balance only for large capital needs, such as additional funds to complete the Police Community Services Building and to transfer from Franklin County Emergency Dispatch to Southeast Communications Center (SECOMM), and more recently relocation of Fire Stations. As the City moves forward with appropriately equipped and sized public safety facilities, and other infrastructure needs of a growing and aging City, the goal is to keep this reserve stable. For many years, Council chose to forego their option to implement allowed Property Tax increases. Instead that taxing capacity was “banked,” allowing the future implementation of the taxing authority upon Council approval. With the need to relocate two Fire Stations, the - 5,000 10,000 15,000 20,000 25,000 20132014201520162017201820192020Estimated2021Budget2022BudgetThousandsGeneral Fund - Fund Balance   82  desire to build a new Community Center on the horizon and ongoing costs associated with the public safety personnel enhancement this biennium, Council has approved recapturing the banked capacity and, as such, this budget includes the recognition of an additional $1.8M of Property Tax revenue. The value of the budgeted ending fund balance as of 2020 is equal to approximately 122 days’ or 34% of operating expenses. Recommended level for this reserve is at least 60 days, or 18% of operating expenses. COVID-19 pandemic has raised serious concerns over adequacy of 60 days reserve. Many cities and counties across the country have had to lay off staff when the community needed them the most or acquire debt to continue operations. - 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 30,000,000 35,000,000 Actual 2016 Actual 2017 Actual 2018 Actual 2019 Estimated 2020 Budgeted 2021 Budgeted 2022 Ending Fund Balance General Fund Special Revenue Funds   83  2021-2022 BUDGET SUMMARIES   84  2021-2022 BUDGET SUMMARY – ALL FUNDS Fund Budgeted Beginning Fund Balance Resources Expenditures Budgeted End Fund Balance Net Change in Fund Balance GENERAL FUND 26,967,000 113,085,878 117,210,191 22,842,687 (4,124,313) SPECIAL REVENUE FUNDS Street 400,000 4,400,575 4,895,451 (94,876) (494,876) Arterial 1,089,000 983,294 614,968 1,457,326 368,326 I-182 Impact 2,634,000 879,000 605,000 2,908,000 274,000 Street Overlay 3,615,000 4,196,060 5,781,422 2,029,638 (1,585,362) CDBG - 2,769,906 1,629,320 1,140,586 1,140,586 Martin Luther King Center 89,815 234,702 281,420 43,097 (46,718) Ambulance 1,568,672 17,789,935 18,561,188 797,419 (771,253) Cemetery 147,172 547,200 624,664 69,708 (77,464) Boulevard Maintenance 2,229,268 406,742 313,426 2,322,584 93,316 Athletics 205,620 349,260 330,447 224,433 18,813 Golf course (102,143) 3,508,000 3,660,186 (254,329) (152,186) Senior Center 77,790 548,782 504,601 121,971 44,181 Multi Modal 273,148 379,240 371,013 281,375 8,227 School Impact 214,663 5,000,000 4,986,000 228,663 14,000 Pasco Marina (34,877) 54,202 240,112 (220,787) (185,910) Lodging - 475,000 475,000 - - Litter Abatement 31,003 35,400 30,974 35,429 4,426 Revolving Abatement 430,903 419,000 830,300 19,603 (411,300) TRAC 634,471 506,002 554,022 586,451 (48,020) Park Development 647,187 1,673,400 381,584 1,939,003 1,291,816 Capital Improvement REET 9,850,000 4,540,000 2,042,735 12,347,265 2,497,265 Economic Development 1,172,000 2,687,620 1,216,418 2,643,202 1,471,202 Stadium/Convention Center 892,492 322,500 629,344 585,648 (306,844) Hotel/Motel Excise Tax 6,951 757,060 1,180,700 (416,689) (423,640) DEBT SERVICE LID (793,528) 461,902 592,117 (923,743) (130,215) CAPITAL PROJECT General Capital Improvement - 34,916,047 34,916,047 - -   85  ENTERPRISE FUND Total Water/Sewer Fund 22,235,773 140,982,987 142,647,084 20,571,676 (1,664,097) Water 14,935,489 38,255,128 44,528,810 8,661,807 (6,273,682) Irrigation 488,416 3,975,028 4,187,339 276,105 (212,311) Sewer 4,084,775 55,423,813 47,659,527 11,849,061 7,764,286 PWRF - 38,709,408 41,639,621 (2,930,213) (2,930,213) Storm Water 2,727,093 4,619,610 4,631,787 2,714,916 (12,177) INTERNAL SERVICE FUNDS Equipment O&M Govt (4,514) 3,204,437 3,305,244 (105,321) (100,807) Equipment O&M Enterprise - 264,002 264,002 - - Equipment Replacement Govt 8,868,277 3,605,776 3,634,813 8,839,240 (29,037) Equipment Replacement Enterprise 4,433,018 1,891,178 2,546,788 3,777,408 (655,610) Medical/Dental 2,954,575 12,558,640 12,295,620 3,217,595 263,020 Central Stores 8,000 110 1,000 7,110 (890) FIDUCIARY FUNDS Old Fire Pension 3,040,087 274,510 280,464 3,034,133 (5,954) Old Fire OPEB 3,507,950 114,000 328,179 3,293,771 (214,179) PERMANENT FUND Cemetery Endowment 592,588 52,000 - 644,588 52,000 TOTAL 97,881,361 364,874,347 368,761,844 93,993,864 (3,887,497) TOTAL BUDGET 462,755,708 462,755,708   86  Changes to Fund Balance General Fund – The unassigned fund balance is expected to stay stable during this biennium. Due to banked capacity levy, strong sales revenue, and the debt service for a long term LTGO bond expiring in 2020, the fund balance can sustain the increase in labor cost, service and supplies costs. Furthermore, it is a common consensus amongst the municipal finance industry that a larger than usual budget adjustments might have to be made in 2021 due to unpredictability of COVID-19 pandemic. If the economic forecast is worse than projected, Council can utilize the reserves to continue vital services to City’s residents and businesses. Street Fund – This fund is expected to be significantly impacted by COVID-19 pandemic due to reduction in Motor Vehicle Fuel Taxes, as well as, its ability to perform work that gets reimbursed by other funds like Street Overlay Fund. The fund is always working with minimal fund balance by nature, and the impact of COVID-19 will hamper its ability to operate without assistance from General Fund. Arterial Fund – A increase of 34% of fund balance can be attributed to decreased activity in arterial road projects utilizing Arterial Fund. However, City will need to utilize these funds if Lewis Street Overpass project bids come in at higher amount than currently budgeted. The City accumulates fund balance to complete projects, many times as matching funds to Federal or State grants. I-182 Impact Fund – The City accumulates fund balances to complete projects, many times as matching funds to Federal or State grants for major eligible projects. Street Overlay Fund – A decrease of 44% of fund balance can be attributed to increased activity compared to prior years. Almost $3.0M in fund balance will be utilized by Lewis Street overpass project, while the City is also focusing on residential overlay maintenance and a pavement preservation program that drive the majority of the increase in expenses. Ambulance Services Fund – A decrease in fund balance for the Ambulance Services Fund is a problem that the City is continually working on. Increase in costs which are not currently sustained by incoming revenue is a major issue. The City is monitoring new revenue from Ground Emergency Medical Transportation (GEMT), to evaluate its trend and await Federal audit to gauge true reimbursement. Fund balance is healthy in last 2 years due to influx of GEMT reimbursement for prior years compared to its historical state. Golf Course Fund – Anticipating some impacts of COVID-19 pandemic. The City will continue to monitor this fund and propose changes to increase revenue when needed. Subsidy from General Fund might be necessary in future if the pandemic impacts do not subside. Marina Fund – A 533% decrease to the fund balance is mainly due to damage to the second marina dock. City is working with insurance company to identify and secure funding to repair damages, however, the revenue is not budgeted for 2021-2022 due to uncertainty to the extent of which the insurance company will cover the damage.   87  Revolving Abatement Fund – The decrease in fund balance is due to a policy change to account for bad debt expense each year, as well as planned expenses to abate more properties than in the past years. Park Development Fund – A increase of 200% of fund balance can be attributed to lower allocation to park capital budget than the revenue expected to be received. City is planning for large park projects in future years and needs to build up fund balance to accomplish those goals. Capital Improvement (REET) Fund – A increase of 25% of fund balance can be attributed to increased activity in home sales, without corresponding increase to capital projects relying on this fund. Fund reserve is accumulated with such forthcoming investment in mind. Economic Development Fund – An increase in fund balance is due to revenue exceeding expenses. However, the fund includes farm circles and irrigation implements that require significant capital investment. Fund reserve is accumulated with such forthcoming investment in mind. Stadium/Convention Center Fund – Anticipating some impacts of COVID-19 pandemic. The City will continue to monitor this fund and propose changes to increase revenue or reduce costs when needed. Hotel/Motel Excise Tax Fund – Anticipating some impacts of COVID-19 pandemic. 2021-2022 budget anticipates lower revenues while keeping the expenses at historical level. Council authorizes allocations of Hotel/Motel Excise Tax each year in a separate process. Any actual reductions in revenue will have reciprocal reduction in expenses/allocations. Utility Fund – Significant capital investment activity, as well as alignment of staff to utility has drawn down fund balance overall for most services. Equipment O&M Government Fund – A decrease in fund balance is due to budgeted expenses exceeding anticipated revenue. City will embark on rate revision if the trend continues. Equipment Replacement Enterprise Fund – A decrease in fund balance is due to planned purchases of vehicles/equipment in 2021-2022 biennium. Funds are transferred/saved to this fund over years and purchases of vehicles/equipment is made when there is sufficient funding or critical need to replace them. Medical/Dental Fund – An increase of 9% in the Medical/Dental fund balance is on trend. The City is self-insured and a healthy growth in fund balance is required and needed to account for growing medical costs. Old Fire OPEB – A decrease of 6% in the Old Fire OPEB fund balance is on trend. Growing medical costs will continue decreasing the fund balance of this fund in future.   88  Cemetery – An increase of 9% in the Cemetery Endowment Fund is on trend and expected to grow in future. City is not currently planning to withdraw any funds eligible per contract. All changes greater than $50K are discussed above.   89  SUN WILLOWS GOLF COURSE VOLUNTEER PARK   90  Comparative Budget Summary – General Fund 2017 Actual 2018 Actual 2019-2020 Budget 2021-2022 Budget REVENUES Taxes: Property 7,963,302 8,352,750 21,548,971 22,947,637 Sales & Use 14,838,955 16,011,686 31,123,209 34,431,329 Utility 9,274,980 8,838,481 19,308,919 22,254,341 Other 1,252,023 1,291,695 2,437,750 1,922,780 License & Permits 2,177,235 2,640,720 4,459,000 5,565,781 Intergovernmental 2,130,297 2,376,588 4,737,868 4,684,217 Charges for Service 6,932,636 7,285,865 15,417,018 15,641,239 Fines & Forfeitures 788,474 943,320 1,811,200 2,546,354 Miscellaneous 637,067 1,445,526 1,190,800 1,394,348 Total Revenues 45,994,969 49,186,631 102,034,735 111,388,026 Expenditures Salaries & Wages 20,221,051 21,327,390 44,576,964 50,173,870 Personnel Benefits 7,388,931 7,487,536 16,294,075 17,111,243 Supplies 1,344,773 1,422,673 3,428,183 4,679,526 Services & Charges 11,609,685 13,113,514 26,565,608 27,236,701 Capital Outlays 166,168 158,124 739,702 954,579 Debt Services 1,182,947 1,167,300 5,225,634 3,780,250 Interfund Payments for Services 3,218,228 1,934,031 3,203,391 5,240,298 Total Expenditures 45,131,783 46,610,568 100,033,557 109,176,467   91  2017 Actual 2018 Actual 2019-2020 Budget 2021-2022 Budget OTHER FINANCING SOURCES (USES) Insurance Recoveries 7,094 192,833 5,000 61,562 Bond Proceeds 17,250,000 366,528 Proceeds from Sale of Capital Asset 140,212 - - Transfer In From Fund 150 Customer Service Counter & UB Repl 23,233 From Fund 161 Blvd Maint for Facility (Vehicle)45,000 12,600 25,200 - From Fund 161 Blvd Maint for Facility (Staff)125,000 125,000 250,000 290,000 From Fund 140 CDBG for Code Enf Staff 48,000 24,903 140,000 188,000 From Fund 140 CDBG for Civic Ctr 20,000 73,830 40,000 - From Fund 193 Reet for Street Sidewalk 100,000 - - From Fund 200 LID Guarantee-Street Sidewalk 300,000 - - From Fund 411 Customer Service Counter & UB Repl 37,980 From Fund 420 Customer Service Counter & UB Repl 44,428 From Fund 450 Customer Service Counter & UB Repl 49,599 From Fund 470 Customer Service Counter & UB Repl 9,760 From Fund 515 Return funds from ER 451,762 From Fund 180 to transfer to Fund 110 Transportaion Study 175,000 Transfer Out - - To Fund 110 Street Sidewalk (587,000) - - To Fund 110 Street Public Utility Tax (516,020) To Fund 110 Street Transportation Study from Fund 180 (175,000) To Fund 130 Street Overlay Public Utility Tax (2,068,472) To Fund 145 MLK Center Subsidy (100,000) (50,000) (100,000) (100,000) To Fund 150 Ambulance Subsidy (420,000) (420,000) (840,000) (840,000) To Fund 160 Cemetery Subsidy - - To Fund 170 Senior Center Subsidy (201,000) (250,000) (424,116) (428,232) To Fund 189 Liter Abatement Subsidy (5,000) (5,000) (10,000) (10,000) To Fund 200 LID Guarantee - - To Fund 367 Levee Lowering Sacajawea trail (8,340) - - To Fund 367 CIP projects (1,089,716) (190,563) (17,625,000) (3,896,000) Net Change in Fund Balance (894,436) 2,221,538 712,262 (4,124,313) Budgeted Fund Balances - Beginning 13,290,429 26,967,000 Budgeted Fund Balances - Ending 14,002,691$ 22,842,687$   92    93    94  2021-2022 Budgeted Revenue by Type – All Funds Fund Taxes License & Permits Intergov't Charges for Services GENERAL FUND 81,556,087 5,565,781 4,684,217 15,641,239 SPECIAL REVENUE FUNDS Street - 813,400 2,002,995 892,560 Arterial - - 959,294 10,000 I-182 Impact - - - 869,000 Street Overlay 2,057,588 - - - CDBG - - 2,665,206 - Martin Luther King Ctr - - - - Ambulance - - 3,728,600 13,183,335 Cemetery - - - 544,000 Boulevard Maintenance - - - 301,000 Athletics - - - 341,460 Golf course - - - 2,947,000 Senior Center - - 31,250 21,040 Multi Modal - - 205,170 - School Impact - - - 5,000,000 Pasco Marina - - - - Lodging - - - 475,000 Litter Abatement - - - 25,000 Revolving Abatement - - - 98,000 TRAC 2 - - - Park Development - - - 1,633,400 Capital Improvement REET 4,400,000 - - - Economic Development - - 800,000 - Stadium/Convention Center - - - - Hotel/Motel Excise Tax 757,000 - - -   95  2021-2022 Budgeted Revenue by Type – All Funds (cont.) Fund Fines & Forfeitures Miscellaneous Revenues Interfund Transfers Other Sources Beginning Fund Balance Total Resources GENERAL FUND 2,546,354 1,455,910 1,269,762 366,528 26,967,000 140,052,878 SPECIAL REVENUE FUNDS Street - 600 691,022 - 400,000 4,800,575 Arterial - 14,000 - - 1,089,000 2,072,294 I-182 Impact - 10,000 - - 2,634,000 3,513,000 Street Overlay - 70,000 2,068,472 - 3,615,000 7,811,060 CDBG - 104,700 - - - 2,769,906 Martin Luther King Ctr - 94,702 140,000 - 89,815 324,517 Ambulance - 38,000 840,000 - 1,568,672 19,358,607 Cemetery - 3,200 - - 147,172 694,372 Boulevard Maintenance - 41,451 - 64,291 2,229,268 2,636,010 Athletics - 7,800 - - 205,620 554,880 Golf course - 561,000 - - (102,143) 3,405,857 Senior Center - 28,260 468,232 - 77,790 626,572 Multi Modal - 174,070 - - 273,148 652,388 School Impact - - - - 214,663 5,214,663 Pasco Marina - 54,202 - - (34,877) 19,325 Lodging - - - - - 475,000 Litter Abatement - 400 10,000 - 31,003 66,403 Revolving Abatement 280,000 41,000 - - 430,903 849,903 TRAC - 6,000 500,000 - 634,471 1,140,473 Park Development - 40,000 - - 647,187 2,320,587 Capital Improvement REET - 140,000 - - 9,850,000 14,390,000 Economic Development - 1,887,620 - - 1,172,000 3,859,620 Stadium/Convention Center - 67,000 255,500 - 892,492 1,214,992 Hotel/Motel Excise Tax 60 - - 6,951 764,011   96  2021-2022 Budgeted Revenue by Type – All Funds (cont.) Fund Taxes License & Permits Intergov't Charges for Services DEBT SERVICE LID - - - - CAPITAL PROJECT General CIP - - 15,666,000 - ENTERPRISE FUND Total Water/Sewer Fund - 527,878 4,025,002 63,818,213 Water - - - 25,343,880 Irrigation - - - 3,904,100 Sewer - 124,820 - 21,840,275 PWRF - 403,058 3,925,002 8,220,348 Storm Water - - 100,000 4,509,610 INTERNAL SERVICE FUNDS Eqpt O&M Govt - - - 3,190,437 Eqpt O&M Enterprise - - - 264,002 Eqpt Replacement Govt - - - 3,505,776 Eqpt Replacement Enterprise - - - 1,871,178 Medical/Dental - - - 12,399,640 Central Stores - - - - FIDUCIARY FUNDS Old Fire Pension - - 182,988 - Old Fire OPEB - - - - PERMANENT FUND Cemetery Endowment - - - 42,000 TOTAL 88,770,677 6,907,059 34,950,722 127,073,280   97  2021-2022 Budgeted Revenue by Type – All Funds (cont.) Fund Fines & Forfeitures Miscellaneous Revenues Interfund Transfers Other Sources Beginning Fund Balance Total Resources DEBT SERVICE LID 461,902 - - (793,528) (331,626) CAPITAL PROJECT General CIP 5,576,047 13,674,000 - - 34,916,047 ENTERPRISE FUND Total Water/Sewer Fund 66,162,454 - 6,449,440 22,235,773 163,218,760 Water 11,058,748 - 1,852,500 - 38,255,128 Irrigation 70,928 - - - 3,975,028 Sewer 30,361,778 - 3,096,940 - 55,423,813 PWRF 24,661,000 - 1,500,000 - 38,709,408 Storm Water 10,000 - - - 4,619,610 INTERNAL SERVICE FUNDS Eqpt O&M Govt 14,000 - - (4,514) 3,199,923 Eqpt O&M Enterprise - - - - 264,002 Eqpt Replacement Govt 100,000 - - 8,868,277 12,474,053 Eqpt Replacement Enterprise 20,000 - - 4,433,018 6,324,196 Medical/Dental 219,000 - - 2,954,575 15,513,215 Central Stores 110 - - 8,000 8,110 FIDUCIARY FUNDS Old Fire Pension 16,800 - 74,722 3,040,087 3,314,597 Old Fire OPEB 10,000 - 104,000 3,507,950 3,621,950 PERMANENT FUND Cemetery Endowment 10,000 - - 592,588 644,588 TOTAL 2,826,354 77,370,288 19,916,988 7,058,981 97,481,361 462,755,708   98  2021-2022 Budgeted Expenditures by Object – All Funds   Fund Personnel Supplies Services Interfund Services GENERAL FUND 67,285,113 4,679,526 27,236,701 5,240,298 SPECIAL REVENUE FUNDS Street 1,529,174.00 877,326 1,290,361 1,198,590 Arterial - - - 18,968 I-182 Impact - - - - Street Overlay - - - 58,422 CDBG 233,750.00 2,400 753,170 24,000 Martin Luther King Center 105,217.00 8,660 98,841 68,702 Ambulance 13,875,144.00 667,918 1,986,935 1,883,958 Cemetery 224,118.00 49,620 248,243 102,683 Boulevard Maintenance - - - 23,426 Athletics 44,352.00 87,000 160,649 38,446 Golf course - 4,000 2,954,000 702,186 Senior Center 349,660.00 12,100 69,345 73,496 Multi Modal - 20,000 93,536 82,477 School Impact - - 4,986,000 - Marina - - 26,000 14,112 Lodging - - 475,000 - Litter Abatement - - 30,000 974 Revolving Abatement - - 822,200 8,100 TRAC - - 550,000 4,022 Park Development - - 36,000 584 Capital Improvement REET - - - 81,735 Economic Development 338,057.00 183,782 609,742 59,837 Stadium/Convention Ctr - - 373,844 - Hotel/Motel Excise Tax - - 411,000 14,200   99  2021-2022 Budgeted Expenditures by Object – All Funds (cont.) Fund Interfund Transfers Capital Debt Services Ending Fund Balance Total Resources GENERAL FUND 8,033,724 954,579 3,780,250 22,842,687 $140,052,878 SPECIAL REVENUE FUNDS Street - - - (94,876) 4,800,575 Arterial 596,000 - - 1,457,326 2,072,294 I-182 Impact 605,000 - - 2,908,000 3,513,000 Street Overlay 5,723,000 - - 2,029,638 7,811,060 CDBG 616,000 - - 1,140,586 2,769,906 Martin Luther King Center - - - 43,097 324,517 Ambulance 23,233 124,000 - 797,419 19,358,607 Cemetery - - - 69,708 694,372 Boulevard Maintenance 290,000 - - 2,322,584 2,636,010 Athletics - - - 224,433 554,880 Golf course - - - (254,329) 3,405,857 Senior Center - - - 121,971 626,572 Multi Modal 175,000 - - 281,375 652,388 School Impact - - - 228,663 5,214,663 Marina 200,000 - - (220,787) 19,325 Lodging - - - - 475,000 Litter Abatement - - - 35,429 66,403 Revolving Abatement - - - 19,603 849,903 TRAC - - - 586,451 1,140,473 Park Development 345,000 - - 1,939,003 2,320,587 Capital Improvement REET 1,961,000 - - 12,347,265 14,390,000 Economic Development - 25,000 - 2,643,202 3,859,620 Stadium/Convention Ctr - - 255,500 585,648 1,214,992 Hotel/Motel Excise Tax 755,500 - - (416,689) 764,011   100  2021-2022 Budgeted Expenditures by Object – All Funds (cont.) Fund Personnel Supplies Services Interfund Services DEBT SERVICE LID - - - - CAPITAL PROJECT General CIP - - - - ENTERPRISE FUND Total Utility Fund 13,279,834.00 4,625,813 19,695,984 8,018,953 Water 4,522,163.00 2,003,198 9,313,228 4,236,867 Irrigation 809,534.00 130,612 1,688,297 727,957 Sewer 4,322,355.00 1,644,506 5,111,952 1,376,482 PWRF 1,665,893.00 729,697 2,894,868 799,948 Storm Water 1,959,889.00 117,800 687,639 877,699 INTERNAL SERVICE FUNDS Eqpt O&M Govt 1,389,368.00 1,531,552 346,734 37,590 Eqpt O&M Enterprise - 264,002 - - Eqpt Replacement Govt - - - - Eqpt Replacement Enterprise - 509,718 - - Medical/Dental 173,632.00 - 11,933,576 188,412 Central Stores - 1,000 - - FIDUCIARY FUNDS Old Fire Pension 270,000.00 - 7,000 3,464 Old Fire OPEB 175,080.00 - 150,750 2,349 PERMANENT FUND Cemetery Endowment - - - - TOTAL 99,272,499 13,524,417 75,345,611 17,949,984   101  2021-2022 Budgeted Expenditures by Object – All Funds (cont.) Fund Interfund Transfers Capital Debt Services Ending Fund Balance Total Budget DEBT SERVICE LID - - 592,117 (923,743) (331,626) CAPITAL PROJECT General CIP - 34,916,047 - - 34,916,047 ENTERPRISE FUND Total Utility Fund 141,767 87,016,511 9,868,222 20,571,676 163,218,760 Water 37,980 20,622,025 3,793,349 8,661,807 (9,823,766) Irrigation 44,428 786,511 - 276,105 (357,528) Sewer 49,599 32,513,475 2,641,158 11,849,061 (7,070,254) PWRF - 32,115,500 3,433,715 (2,930,213) 2,494,044 Storm Water 9,760 979,000 - 2,714,916 (2,931,501) INTERNAL SERVICE FUNDS Eqpt O&M Govt - - - (105,321) 3,199,923 Eqpt O&M Enterprise - - - - 264,002 Eqpt Replacement Govt 451,762 3,183,051 - 8,839,240 12,474,053 Eqpt Replacement Enterprise - 2,037,070 - 3,777,408 6,324,196 Medical/Dental - - - 3,217,595 15,513,215 Central Stores - - - 7,110 8,110 FIDUCIARY FUNDS Old Fire Pension - - - 3,034,133 3,314,597 Old Fire OPEB - - - 3,293,771 3,621,950 PERMANENT FUND Cemetery Endowment - - - 644,588 644,588 TOTAL 19,916,986 128,256,258 14,496,089 93,993,864 462,755,708   102  Staffing Trends The following page presents the current and past staffing allocated to the various City departments and funds. Since 2016, the staffing focus has primarily been in the public safety departments such as Fire, Ambulance and Police. As the City population has increased, the need for public safety services has consequently increased. The City’s efforts and focus in this area has positively influenced the quality of life and community well-being. According to safehome.org, Pasco is the third safest city in Washington State and has a safety rating of 79. Further, Pasco’s crime rate has dropped more than 80% since 1990. These strides toward improving public safety can be partially attributed to funding sources such as State and Federal grants. In 2017, the City accepted a Staffing for Adequate Fire and Emergency Response (SAFER) Grant to assist in fully staffing the new fire station, Station 84. In order to fully staff the station, 12 FTEs were needed, 6 of which were funded by the SAFER grant. Of these 6 FTEs funded by the grant, 3 were added to Fire and 3 to Ambulance Service. All staff hired under SAFER grant are now fully funded by the City. Further, to supplement the City’s focus on public safety, the City has also been awarded the Community Oriented Policing Services (COPS) Grant with reimbursement funding anticipated to begin in 2019. Because of this, the Police Department added 4 FTEs in the 2019-2020 biennium, which will be partially reimbursed by the grant. Council authorized the addition of FTEs in 2018; however, onboarding of the FTEs started in 2019. COPS grants will continue funding partial expenses of these 4 FTEs into 2022, after which, the positions will be fully funded with internal resources. Staffing levels in these departments will now be stable and correspond to service levels needed for the community. A growing City requires additional staffing on non-public safety areas to support greater levels of activity, larger infrastructure, and increasing complexity to be successful at meeting the needs of its residents. While specific focus on efficiency is important to ensure that tax revenues are maximized, additional staff are needed when those actions are not enough. The graph below shows the full-time equivalents (FTEs) citywide from 2015 to 2022, in which 2021- 2022 figures are budgeted. According to the Office of Financial Management, the City of Pasco’s population growth was approximately 2.7% and 2.3% in 2018 and 2019, respectively. Growth is expected to grow at a similar rate within the next biennium. The number of employees per 1,000 citizens has historically been 4.9 FTEs since 2016. It is projected to remain at that level, though slightly lower, through the 2021-2022 Biennial Budget cycle. The chart below shows the correlation between staffing levels and population.   103  0 1 2 3 4 5 6 02004006002016 2017 2018 2019 2020 2021-2022 Staff per Population FTEs per Year   104  FTE Allocation General Fund-Departments 2018 2019 2020 2021 2022 19-20 Changes 20-21 Changes City Council 7.00 7.00 7.00 7.00 7.00 0.00 0.00 Municipal Court 14.75 14.85 14.85 15.85 15.85 0.00 1.00 City Manager 9.70 9.70 5.00 5.00 5.00 -4.70 0.00 Human Resources 0.00 0.00 5.50 5.50 5.50 5.50 0.00 Police 91.00 92.00 92.00 92.00 92.00 0.00 0.00 Fire 39.50 39.50 40.00 38.00 38.00 0.50 -2.00 Administrative & Community Services 32.50 33.55 40.55 41.55 41.55 7.00 1.00 Finance 17.80 17.80 17.05 17.05 17.05 -0.75 0.00 Community & Economic Development 16.00 16.00 25.00 25.00 25.00 9.00 0.00 Engineering 16.65 16.65 8.65 10.65 10.65 -8.00 2.00 Sub-Total General Fund 244.90 247.05 255.60 257.60 257.60 8.55 2.00 Other Funds Streets 10.01 8.75 8.50 7.50 7.50 -0.25 -1.00 CDBG 1.00 1.00 1.00 1.00 1.00 0.00 0.00 Martin Luther King Center 1.00 0.45 0.45 0.45 0.45 0.00 0.00 Ambulance 40.50 40.50 41.75 43.75 43.75 1.25 2.00 Cemetery 1.50 1.50 1.50 1.50 1.50 0.00 0.00 Senior Center 2.00 1.50 1.50 1.50 1.50 0.00 0.00 Economic Development 1.00 1.00 1.00 1.00 1.00 0.00 0.00 Water/Sewer Utility 59.85 61.11 61.36 63.36 63.36 0.25 2.00 Equipment RR - combine 6.69 6.69 6.69 6.69 6.69 0.00 0.00 Internal Medical Insurance 0.30 0.30 0.50 0.50 0.50 0.20 0.00 Sub-Total Other Funds 123.85 122.80 124.25 127.25 127.25 1.45 3.00 Total, City-wide 368.75 369.85 379.85 384.85 384.85 10.00 5.00   105  CITY OF PASCO CITIZENS CITY COUNCIL CITY MANAGER MUNICIPAL COURT JUDGE Municipal Court Probation ServicesCourt Services HUMAN RESOURCES Employment Benefits/ Compensation Labor Relations POLICE CHIEF Investigation Field Operations Support Operations FIRE CHIEF Fire Supression Ambulance COMMUNITY & ECONOMIC DEVELOPMENT DIRECTOR Block Grants Economic Development Inspections/ Code Enforcement Services Planning Development Services PUBLIC WORKS DIRECTOR Engineering Street Maintenance Utilities Equipment Rental & Replacement ADMINISTRATIVE & COMMUNITY SERVICES DIRECTOR Indigent Defense & Prosecution Recreation Facilities City Clerk Information Services FINANCE DIRECTOR Accounting Customer Service DEPUTY CITY MANAGER Communications   106      107  DEPARTMENTS UNDER GENERAL FUND The Departmental/Fund Level Budget contains the organizational chart for each of the City’s major departments and funds, as well as historical and budgeted expenditures. This section includes the 2019-2020 accomplishments and 2021-2022 goals for each department.   108  City Council   CITIZENS OF PASCO CITY COUNCIL CITY MANAGER CIVIL SERVICE COMMISSION BENTON-FRANKLIN REGIONAL COUNCIL CODE ENFORCEMEN T BOARD BENTON-FRANKLIN TRANSIT AUTHORITY DOWNTOWN PASCO DEVELOPMENT ASSOCIATION FRANKLIN COUNTY EMERGENCY MANAGEMENT FIREMAN'S PENSION BOARD HOUSING AUTHORITY HISTORIC PRESERVATION COMMISSION REGIONAL PUBLIC FACILITIES DISTRICT LEOFF DISABILITY BOARD PARKS & RECREATION ADVISORY BOARD PLANNING COMMISSION PUBLIC FACILITIES DISTRICT INCLUSION, DIVERSITY, & EQUITY COMMISSION ARTS & CULTURE COMMISSION Commissions included are either created or advised by Council.   109  Council 2017 Actual 2018 Actual 2019-2020 Budget 2021-2022 Budget Expenditures Salaries 90,963 97,677 195,358 201,258 Personnel Benefits 12,196 9,995 19,972 16,252 Supplies 246 879 1,600 6,150 Services 8,513 15,982 43,610 75,111 Department Total 111,918 124,533 260,540 298,771 City Council Personnel Summary Number of Employees (FTE) Position 2016 2017 2018 2019 2020 2021 2022 Mayor 1 1 1 1 1 1 1 Mayor Pro-Tem 1 1 1 1 1 1 1 City Council 5 5 5 5 5 5 5 Total 7 7 7 7 7 7 7 No changes from 2020 to 2021.   110  Municipal Court JUDGE COURT ADMINISTRATOR COURT SERVICES SPECIALIST LEAD COURT CLERK Deputy Court Clerk PROBATIONOFFICER Probation Clerk Administrative Assistant II   111  Court 2017 Actual 2018 Actual 2019-2020 Budget 2021-2022 Budget Revenue Intergovernmental - 13,739 - - Charges Goods & Services 230,142 202,668 508,000 397,138 Fines & Penalties 128,196 106,572 221,200 209,534 Miscellaneous 52,699 62,335 120,000 129,742 Department Total 411,037 385,314 849,200 736,414 Court 2017 Actual 2018 Actual 2019-2020 Budget 2021-2022 Budget Expenditures Salaries 865,502 849,176 1,829,501 2,163,199 Personnel Benefits 386,517 400,654 840,346 936,309 Supplies 32,685 35,302 88,604 95,204 Services 173,977 293,782 470,246 576,025 Capital Outlays - - - - Department Total 1,458,681 1,578,914 3,228,697 3,770,737 Municipal Court Personnel Summary Number of Employees (FTE) Position 2017 2018 2019 2020 2021 2022 Judge 0.75 0.75 0.85 0.85 0.85 0.85 Court Administrator 1 1 1 1 1 1 Administrative Assistant II 1 1 1 1 1 1 Court Services Specialist 2 2 2 2 2 2 Lead Court Clerk 1 1 1 1 1 1 Deputy Court Clerk 6 6 6 6 7 7 Probation Services Clerk 2 2 2 1 1 1 Court Probation Officer 1 1 1 2 2 2 Total 14.75 14.75 14.85 14.85 15.85 15.85 2021 - Proposed addition of 1 Deputy Court Clerk (1 FTE).   112  MUNICIPAL COURT MISSION Pasco Municipal Court recognizes the importance of treating individuals appearing before the Court in a fair and impartial manner. This ensures that everyone, to the extent possible, feels as though they have truly had their day in court; whether the matter to be heard is civil or criminal in nature. Provide courteous, conscientious service and accurate information to the public we serve. MAJOR FUNCTIONS Pasco Municipal Court is a court of limited jurisdiction with the jurisdiction to hear certain criminal cases, traffic infractions, non-traffic infractions and parking tickets. The City contracts with the City of Mesa and the Port of Pasco Tri-Cities Airport to hear their cases as well. There are three divisions within the court system supervised by Pasco Municipal Court, in addition to the Clerks Office. PROBATION This division monitors defendants who are placed on active supervision by the Judge at the time of sentencing. COMMUNITY SERVICE This division is responsible for defendant work crews for those ordered to perform a determined amount of hours as a case condition of sentencing. The crews not only assist with graffiti abatement, but also perform many other tasks within the City of Pasco. GRAFFITI ABATEMENT PROGRAM (GAP) This division helps local business owners and City residents with the removal of graffiti from their property. Public areas are also included in locations served by GAP. The crews are the same persons ordered to perform community service hours. 2018 KEY ACCOMPLISHMENTS COURT o We continue to revise and print forms internally using supplies provided by Administrative Office of the Courts(AOC) in an attempt to reduce costs for forms. o Continue to investigate the possibility of becoming a paperless court. This is an ongoing goal that will take years to accomplish. However, before pursuing this goal further, the Court must first ensure this is feasible with the new case management system being procured and/or developed by Washington State Administrative Office of the Courts (AOC). The new state mandated case management system will likely be implemented by Pasco Municipal Court in 2021 or 2022, as AOC recently rolled out the new Courts of Limited Jurisdiction Case Management System; which is in Beta testing in 3 other courts beginning December, 2020. o Continue cross training of probation clerks to perform some functions within the court office. However, vacancy in positions has delayed completion.   113  o Extensive cross training of clerks to better provide services to the public in the event a clerk is out for an extended period of time. o Added a new docket to the Court to address hearing requests for the Photo Enforcement Program (Redflex). o Collaborated with Court, an online company that offers an alternative means of paying court fines and costs (LFOs), to provide a less expensive way for defendants to make payments on their LFOs. o Installed a drop box allowing the public to leave payments and other important information with the clerk when the public windows are closed. PROBATION o Continued to investigate the implementation of the Moral Reconation Therapy for Domestic Violence (MRT-DV) program. o Sent our probation officers to MRT-DV training. o Streamlined our probation officers’ duties regarding in court appearances to allow more office time to supervise and meet with probationers. o Incorporated Zoom remote meetings as a tool to meet with and supervise probationers that cannot come into the office or while the office is closed to the public COMMUNITY SERVICES o Continue to timely clean-up homeless camps, garbage, and illegal dump sites within the city limits of Pasco. o Maintained a safe environment looking toward a goal of no injuries while supervising work crew. o Continue to communicate with all City departments to arrange tasks that can be performed by persons ordered into the work crew program. GRAFFITI ABATEMENT PROGRAM o Acquired a new graffiti removal trailer to assist in quick response to requests for abatement. This trailer will allow use of the equipment in colder weather than the previous trailer. BUDGET NARRATIVE 2019-2020 GOALS COURT o Work with Court to get credit card readers at the Clerk’s Office so customers have the option of paying with a credit card at the counter. o Continue to work toward becoming a paperless court. With the implementation of the new CLJ Case Management system, we are coming closer to this goal. o Continue to streamline procedures and cross-train clerks to improve efficiency in serving the public. o Upgrade our technologic abilities to seamlessly hold remote hearings for individuals not able to appear personally.   114  o Work in conjunction with Franklin County to explore providing a means to conduct remote hearings for persons incarcerated in Franklin County Corrections. This would alleviate the need to transport incarcerated defendants to the court room for hearings; therefore, reducing the risk of injury or exposure to the clerks and the public PROBATION o Investigate the implementation of programs more accessible to our predominately indigent customers. This includes MRT-DV offerings to probationers at a much-reduced cost than private domestic violence courses. o Continue to evaluate the probation caseload to identify low risk cases that are eligible for closure. COMMUNITY SERVICES o Continue to offer services to other City departments as requested. o Maintain a safe environment with no injuries. GRAFFITI ABATEMENT PROGRAM o Continue to quickly remove graffiti in the City of Pasco, thus improving the City’s overall appearance and providing a disincentive for those who engage in graffiti activities.   115      116  City Manager CITY MANAGER HUMAN RESOURCES MANAGER POLICE CHIEF FIRE CHIEF COMMUNITY & ECONOMIC DEVELOPMENT DIRECTOR PUBLIC WORKS DIRECTOR ADMINISTRATIVE & COMMUNITY SERVICES DIRECTOR FINANCE DIRECTOR DEPUTY CITY MANAGER Communication Specialist Senior Management Analyst Executive Administrative Assistant MUNICIPAL COURT JUDGE   117  City Manager 2017 Actual 2018 Actual 2019-2020 Budget 2021-2022 Budget Revenue Charges Goods & Services 12,000 - - - Miscellaneous 7,386 5,524 - 24,096 Department Total 19,386 5,524 - 24,096 City Manager 2017 Actual 2018 Actual 2019-2020 Budget 2021- 2022 Budget Expenditures Salaries 963,139 987,040 2,045,497 1,282,999 Personnel Benefits 367,516 364,658 796,418 476,450 Supplies 98,581 16,385 753,017 1,660,710 Services 242,916 251,084 666,204 210,941 Capital Outlays 37,486 6,462 - - Department Total 1,709,638 1,625,629 4,261,136 3,631,100 All City 2017 Actual 2018 Actual 2019-2020 Budget 2021-2022 Budget Revenue Taxes 33,329,260 34,494,612 74,418,849 81,556,087 Licenses & Permits 731,545 1,109,870 1,729,000 1,850,803 Intergovernmental 2,024,529 1,958,477 3,860,240 3,685,474 Charges Goods & Services 2,659,271 2,914,569 6,475,760 6,383,779 Miscellaneous 417,020 628,868 768,200 907,079 Department Total 39,161,625 41,106,396 87,252,049 94,383,222 Non-Departmental 2017 Actual 2018 Actual 2019-2020 Budget 2021-2022 Budget Revenue Charges Goods & Services 32,373 37,848 57,896 57,896 Miscellaneous 34,020 647,425 59,000 59,000 Debt Proceeds - - 17,250,000 366,528 Capital Asset Sale - 140,212 - - Transfer in 638,000 236,333 455,200 1,269,762 Department Total 704,393 1,061,818 17,822,096 1,753,186   118  Non-Departmental 2017 Actual 2018 Actual 2019-2020 Budget 2021-2022 Budget Expenditures Salaries - - - - Personnel Benefits 23,583 3,756 - - Supplies 38,629 38,037 85,416 85,416 Services 1,963,081 2,833,259 4,282,339 4,704,321 Capital Outlays 6,796 - - - Transfer & Pass through 2,402,716 - - - Debt Principal & Interest 1,182,947 1,167,300 5,225,634 3,780,250 Department Total 5,617,752 2,875,052 4,367,755 4,789,737 City Manager Personnel Summary Number of Employees (FTE) Position 2017 2018 2019 2020 2021 2022 City Manager 1 1 1 1 1 1 Deputy City Manager 1 1 1 1 1 1 Executive Assistant 1 1 1 1 1 1 Policy Analyst 0 1 1 0 0 0 Senior Management Analyst 0 0 0 1 1 1 Communications Program Manager 1 1 1 1 1 1 Payroll Specialist* 1 0 0 0 0 0 Administrative Assistant II 1 1 1 0 0 0 HR Specialist 1 1 1 0 0 0 HR Manager 1 1 1 0 0 0 Senior HR Analyst 1 0.7 0.7 0 0 0 Safety & Training Specialist 1 1 1 0 0 0 Total 10 9.7 9.7 5 5 5 2020 – 1 FTE was added to HR Department and the department was moved out of City Manager’s office and created as its own directorate. No changes from 2020 to 2021.   119  CITY MANAGER & EXECUTIVE DEPARTMENT MISSION To assure the delivery of municipal services consistent with Council policy directives, provide leadership and direction of City staff, coordinate efforts with community partners, and assist the community. MAJOR FUNCTIONS CITY MANAGER’S OFFICE Led by the City Manager, this office provides general oversight of all City operations and programs. The City Manager is directly responsible to the City Council for:  Implementation of policy and delivery of City services through the respective Department Directors and for assuring the fair and equitable execution of City policies and regulations.  Oversight and facilitation of the interface between City government and the public.  Formulation of policy recommendations across a broad spectrum of issues for City Council consideration.  Representing the City and its interests in multiple venues and settings.  Promote and coordinate partnerships that further the interests of the City.  Public outreach and media relations efforts including: City publications, website, social media, press releases, public service announcements, and operations of the City government access channel, PSC-TV. 2019-2020 KEY ACCOMPLISHMENTS CITY MANAGER’S OFFICE  Guided the onboarding of new Councilmember and assisted City Council with its first virtual biennial goal setting retreat in September 2020.  Provided leadership and coordination of the City’s COVID response.  Led City and participated in regional COVID related efforts to strengthen inter-agency collaboration, minimize duplication of efforts, and increase transparency.  Implemented compliance, resource, and training system, PowerDMS, citywide.  Completed all-staff workplace diversity training.  Named one of 20 All-America City finalists and coordinated City and partner agency participation in awards competition in Denver, Colorado (2019).  Supported small businesses by distributing small business re-opening packs for Phase 1.5.  Assisted with the development and advocacy of the City Council’s legislative agenda with the Washington State Legislature.  Continued to enhance City economic development efforts and opportunities with special emphasis on downtown Pasco, developing industrial areas and the growing northwest (Broadmoor) area of the community.  With the CED and PW Directors, integrated development engineering services into CED to create a one-stop permit center.  Established Human Resources as a stand-alone department.  Facilitating the construction of a new animal shelter among the cities of Kennewick, Richland and Pasco.   120   Provided appropriate leadership and direction to Directors, key staff, consultants, attorneys on all major projects and initiatives.  Assumed administration/facilitation of the Inclusion, Diversity and Equity Commission.  Assisted Council in establishing and assumed administration of the Arts and Culture Commission. COMMUNICATIONS  New City logo design and rollout.  Completion of program highlighting history of African-American experience in Pasco.  Transition to High Definition for PSCTV Channel 191.  Continuation of radio ads in English on KONA-AM/FM and in Spanish on 92.5 La Super.  Recognition by the National Association of Telecommunications Officers & Advisors (NATOA) in the Government Programming Awards in three categories – Overall Excellence, Election Coverage (for the 2019 Candidate Forum), and Public/Community Meetings (for coverage of the Pasco City Council).  COVID Response o Coordination with City staff on COVID messaging via website, social media, broadcast radio, and television. o Coordination with area agencies on community COVID messaging, including Governor’s press conference, several Mayors’ press conferences, Council public service announcement, and more.  Coordination with staff on remote meeting implementation. BUDGET NARRATIVE Over the 2021-2022 biennium, the City Manager’s Office will administer the Inclusion, Diversity and Equity Commission and newly created Arts and Culture Commission. Within the preliminary budget are funds designated to continue facilitation services to support the efforts of both commissions, their respective work plans, and earmarks funds for culturally related initiatives anticipated through the Arts and Culture Commission. Additionally, during the 2021-2022 biennium the City Manager’s Office will lead the development of a comprehensive organizational training program. This effort will further our commitment to develop and foster employee talents, including the creation of employee engagement and professional development committees, enhance our commitment to organizational cultural competency and equity, and further promote an organizational culture of customer service. The City Manager’s Office will be instrumental in critical initiatives included in the 2021-2022 preliminary budget and, will expend considerable staff resources to see they are advancing to meet the adopted 2020-2021 City Council Goals. 2021-2022 GOALS CITY MANAGER  Creation of Customer Service Program to instill and promote an organizational culture of customer service across all business lines.   121   Develop organizational training program to include customer service and organizational cultural competency.  Develop Community Cares Initiative in collaboration with regional and community partners.  Support the newly established Arts and Culture Commission work plan.  Support the Inclusion, Diversity and Equity Commission to deliver actionable items for City Council consideration. Additional funds budgeted to support facilitation of the Commission and Commission efforts.  Coordination with departments on several key strategic plan efforts.  Create Employee Engagement and Professional Development Committees. COMMUNICATIONS  Continuation of support for COVID messaging and remote meeting capabilities.  Identification of new video server for PSC-TV.  Support of City wayfinding program via proper implementation of City logo standards.  Investigation of feasibility of All-America City program for 2021 and 2022.  Increased production of local PSAs and short programs for PSC-TV, social media, and website.  Regular distribution of Pulse newsletters via utility bills.   122  Human Resources CITY MANAGER HUMAN RESOURCES DIRECTOR Human Resources Specialist Safety & Training Specialist Administrative Assistant II   123  Human Resources Personnel Summary Number of Employees (FTE) Position 2017 2018 2019 2020 2021 2022 HR Director 0 0 0 0.5 0.5 0.5 Administrative Assistant II 0 0 0 1 1 1 HR Specialist 0 0 0 3 3 3 Senior HR Analyst 0 0 0 0 0 0 Payroll Specialist 0 0 0 0 0 0 Safety & Training Specialist 0 0 0 1 1 1 Total 0 0 0 5.5 5.5 5.5 2020 – Department was moved from Executive to its own department. Addition of 1 FTE for Administrative Assistant II. Human Resources 2017 Actual 2018 Actual 2019-2020 Budget 2021 Budget 2022 Budget 2021-2022 Budget Expenditures Salaries - - - 387,805 399,319 787,124 Personnel Benefits - - - 165,946 169,029 334,975 Supplies - - - 5,100 5,243 10,343 Services - - - 279,864 311,787 591,651 Capital Outlays - - - - - - Department Total - - - 838,715 885,378 1,724,093   124  HUMAN RESOURCES MISSION To provide support and services to the City of Pasco employees and maintain effective working relationships with outside organizations and general public. MAJOR FUNCTIONS  Benefits administration  Compensation and classification including wage information and job descriptions  Labor relations including employees represented by unions and collective bargaining agreements (CBA)  Ensure compliance with state and federal employment law and city policies and procedures  Manage full cycle recruitment process for all business lines and civil service (police and fire) 2019-2020 KEY ACCOMPLISHMENTS  Recruitment of employees to ensure delivery of essential services and public safety: o (113) FTEs o (62) seasonal staff o (57) lifeguards (2019 only due to COVID19 restrictions) o (19) civil service through (7) assessment centers  Bargained and settled International Association of Fire Fighters (IAFF) CBA prior to expiration on December 31, 2020.  Completed bargaining with Pasco Police Officers Association (PPOA).  Implemented new Washington Paid Family and Medical Leave law and entitlements.  Assisted in the reorganization of Engineering and Community & Economic Development to create Development Services and Permit Center.  Assisted in the reorganization of Parks & Facilities Division which used a budget-neutral approach to add (7) FTEs to provide year-round maintenance services.  Streamlined and enhanced New Employee Orientation and initiated use of PowerDMS.  Created new managers training.  Completed review and organization of Civil Service files to ensure consistent records management system.  Continued efforts to improve efficiencies through streamlining of hiring practices (E-Verify).  COVID19 REPSPONSE o Managed Families First Coronavirus Response Act (FFCRA), created personnel policy to ensure compliance with new employer leave requirements. o Implemented several temporary personnel policies and procedures and provided guidance to staff, managers, and supervisors to ensure organizational safety. o Developed recruitment and interview processes to advance essential positions while navigating state restrictions.  Promptly managed Employment Security Department (ESD) social security breach.   125  BUDGET NARRATIVE 2021-2022 GOALS  Achieve Society for Human Resources Management (SHRM) professional certifications for all department staff ensuring professional development commitment and industry best practices.  Assist in the coordination of comprehensive City-wide training program to include: o Expanded management and leadership training o Organizational cultural competency o Customer service o Software applications and systems  Conduct review of recruitment practices with a culturally competent lens.  Conduct review, update all job descriptions, and improve accessibility for staff and public.  Complete job analysis of all job classifications.  Bargain Pasco Police Officers Association (PPOA) CBA which expires on December 31, 2021.  Continue to update personnel policies and Pasco Municipal Code with changing state and federal employment law requirements.  Identify external agency to assist in fulfilling hard to recruit seasonal positions.  Implement electrical safety program.  Train, coach, and empower (5) new Human Resources professionals to ensure their success and continued satisfaction.   126  Administrative & Community Services CITY MANAGER ADMINISTRATIVE & COMMUNITY SERVICES DIRECTOR INFORMATION SERVICES MANAGER Network/ Systems Administrator Database/ Applications Specialist Computer & Hardware Specialist GIS Administrator GIS Tech RECREATION SERVICES MANAGER Recreation Specialist Department Assistant Temporary Employees FACILITIES MANAGER Chief Groundsmen Groundsmen I, II & III Facilities Maintenance Cemetery Forestry Park Patrol Temporary Employees CITY CLERK Deputy City Clerk Administrative Assistant II   127  ACS 2017 Actual 2018 Actual 2019-2020 Budget 2021-2022 Budget Revenue Intergovernmental 19,033 13,533 - 40,000 Charges Goods & Services 250,650 271,868 552,351 452,161 Miscellaneous 70,143 77,243 150,400 138,863 Department Total 339,826 362,644 702,751 631,024 ACS 2017 Actual 2018 Actual 2019-2020 Budget 2021-2022 Budget Expenditures Salaries 2,881,021 2,906,899 6,287,266 7,000,784 Personnel Benefits 1,177,701 1,158,693 2,617,821 2,801,993 Supplies 581,223 604,572 1,158,962 1,301,774 Services 2,666,183 2,767,088 5,564,063 7,162,114 Capital Outlays 64,371 53,509 589,702 839,079 Department Total 7,370,499 7,490,761 16,217,814 19,105,744 Library 2017 Actual 2018 Actual 2019-2020 Budget 2021-2022 Budget Revenue Miscellaneous 80 30 200 - Department Total 80 30 200 - Library 2017 Actual 2018 Actual 2019-2020 Budget 2021-2022 Budget Expenditures Supplies 3,857 4,021 9,400 9,400 Services 1,441,692 1,371,873 2,896,418 3,272,456 Department Total 1,445,549 1,375,894 2,905,818 3,281,856   128  SACAJAWEA HISTORICAL STATE PARK   129  Administrative & Community Services Personnel Summary Number of Employees (FTE) Position 2017 2018 2019 2020 2021 2022 Admin. & Comm. Services Director 1 1 1 1 1 1 Information Services Manager 1 1 1 1 1 1 Network Administrator 1 1 1 1 1 1 GIS Administrator 1 1 1 1 1 1 Database Administrator 1 1 1 1 1 1 Information Services Tech - GIS 1 1 1 1 1 1 IS Specialist 2 2 2 1 1 1 Database Specialist 1 1 1 1 2 2 Systems Administrator 1 1 2 3 3 3 Legal Secretary/Paralegal 1 1 - - - - Recreation Services Manager 1 1 1 1 1 1 Facilities Manager 1 1 1 1 1 1 Assistant Facilities Manager 0 0 0 1 1 1 Chief Groundsman 2 2 2 0 0 0 Groundsman I 8.5 8.5 8.5 5 5 5 Groundsman II 1 1 1 3 3 3 Groundsman III 0 0 0 6.5 6.5 6.5 Facilities Lead 0 0 0 2 2 2 Facilities Maintenance I 2 2 1 2 2 2 Arborist 1 1 1 1 1 1 Lead Recreation Specialist 1 1 1 1 1 1 Recreation Specialist 1 1 2.05 2.05 2.05 2.05 City Clerk 1 1 1 1 1 1 Deputy City Clerk 0 0 1 1 1 1 Administrative Assistant II 1 1 1 1 1 1 Department Assistant II 1 1 1 1 1 1 Total 32.5 32.5 33.55 40.55 41.55 41.55 2020 – Reallocated seasonal labor (7 FTE). 2021 - Proposed addition of 1 Database Specialist (1 FTE).   130  ADMINISTRATIVE & COMMUNITY SERVICES MISSION The Administrative and Community Services Department provides integral and innovative services and venues to deliver a variety of services to Pasco residents and staff in support of exceptional quality of life for the community. MAJOR FUNCTIONS Major functions of ACS include: - City Clerk - Information Services - Parks and Facilities - Indigent Defense - Real Estate - Recreation Services CITY CLERK As the City’s designated Public Records Officer, the City Clerk oversees the preservation and protection of the City’s records. The public records provides fundamental integrity to the structure of the City and ensures the overall transparency of the organization to the public; the City Clerk ensures that municipal records are readily accessible to the public. The City Clerk’s Office oversees the processing of public records requests, claims for damages, as well as the recruitment of the City’s Boards and Commission members. The City Clerk supports City Council Meetings, creates, and maintains minutes, ordinances, and resolutions adopted by Council. INFORMATION SERVICES (I.S.) I.S. delivers the entire underlying technological support for all city departments and functions, as well as the provision and support of technological interface with the community. I.S. is not only responsible for the City’s computer and telecommunications systems, but also the development, implementation, and maintenance of all automated municipal information applications including GIS, remote access points for traffic, utility monitoring, and Supervisory Control and Data Acquisition (SCADA) support for multiple civic operations plants and infrastructure (irrigation, water, wastewater, and agricultural re- use water). PARKS AND FACILITIES Responsible for maintaining over 400,000 square feet of buildings throughout the city limits including City Hall, the 1st Avenue Center, the Martin Luther King Center, the Pasco Boat Basin, Gesa Stadium, and Sun Willows Golf Course. Also responsible for maintenance of all city parks, trails, and boulevards and associated infrastructure throughout the year. Additional administration of the cemetery, urban forestry, and park rangers is within this division.   131  RECREATION SERVICES Responsible for the operation and implementation of recreational venues and activities in the community including the management of Memorial Pool and Softball Complex, senior programs, youth and adult sports leagues, and after school programs. Additionally, recreation manages and interfaces with all sports tournaments in Pasco, events such as the Lampson Cable Bridge Run, movies in the park, Winterfest, and cooperates on numerous other events with community groups. 2019-2020 KEY ACCOMPLISHMENTS CITY CLERK  Implemented electronic public records request platform improving compliance tracking, delivery capabilities, and response times.  Completed reorganization of the City Clerk’s Office including recruitment of new City Clerk and reallocated departmental FTE to fill much needed Deputy City Clerk to manage increased public disclosure requests such as newly implemented police body worn camera.  Assumed recruitment process of the City’s boards and commissions to provide consistent procedures and future member database; 22 members appointed or reappointed in 2020.  Updated Public Records Request Policy to effectively meet changed public disclosure climate.  Assisted in the City Council meeting process during COVID19 pandemic including: virtual meeting process, review of issuance of emergency orders, development of new administrative orders, meeting notifications, remote work sites, and virtual recruitment of board and commission members.  Completed annual Joint Legislative Audit and Review Committee’s (JLARC) public records requests for the years of 2018 and 2019.  Researched and identified alternative public records requests platform to provide additional efficiencies for the processing public records requests, maintain required logs and provide the reporting module required by JLARC.  Audited compliance of Open Government Trainings Act Training for board and commission members and implemented procedure to achieve and maintain compliance. INFORMATION SERVICES (I.S.)  Implementation and expansion of technology to support remote work force for continuity of operations for COVID19 response including hardware, software, remote access, and remote service assistance.  Technology services and support for multiple Emergency management stand-up operations for the City and multiple jurisdictional needs.  Expansion of Enterprise Geographic Information System (GIS) to support COVID19 data collection, management, and dashboard to track and assist daily management decision processes.   132   Planned new construction technology for: Fire Stations 81, 82, 83 and 84; City Facilities Shop; Peanuts Park; Animal Shelter; and Lewis Street Overpass.  Expanded Fiber network connectivity to traffic-controlled intersections along 20th Ave, Oregon Ave, and Lewis Street Corridors to allow remote traffic management control.  Upgraded SCADA control systems at two lift stations, water supply intake, and reuse plant to allow improved connectivity, monitoring, and operator control.  Completion of 2020 Aerial Flyovers, updated imagining to City departments for informational, planning, enforcement, and development purposes.  Remodel/rewiring of City Hall, included multiple phased support of additional network data/wire closets, expansion of fiber optic connectivity, and increased network throughput onsite/datacenter, Wi-Fi access point expansion, and office/equipment/staff relocations.  Implementation of Enterprise Security Camera Control System to include all building security cameras/locations and traffic control cameras on a single unified system to allow multiple user types onsite and remote access as required for operations.  Collaboration with Franklin PUD to expand public Wi-Fi internet access into underserved areas to help support COVID19 remote schooling needs. PARKS AND FACILITIES SERVICES  Awarded $960,000 competitive RCO Grant for the replacement of the existing boat launch, dock, and park restroom at Schlagel Park. This project is the beginning of several revitalization projects slated for the area between the Port of Pasco and the City of Pasco.  Complete vital Cemetery Improvements, including: o Rebuilt Baby Memorial Garden by providing new sidewalks, landscaping and expansion of plots. o Addressed ADA needs including new wider sidewalks at the Veterans Memorial and added new funeral service area to hold ADA friendly services. o Built Memorial Gardens, installed benches, and designed future Veterans of All Wars and Service Animal memorials.  Completed City Hall Remodel.  Facility Assistance for Other Departments including: o Fire Department (Burn Prop, Scuba Tank Refilling Station, Admin Building HVAC upgrades, and new COVID19 Testing center) o Police Interview Rooms were upgraded, storage outbuildings installed, and gates replaced to improve security of City assets. o Public Works remodel of administration office area and front office, installed doors for Water, upgraded HVAC systems for Water, Operations and the Treatment Plant, prepared building with electrical for vehicle lifts.  Updated landscape at multiple locations, including: Multi Model, City Hall, Cemetery Office, 20th Ave, Welcome to Pasco signs, and bike trailheads.  COVID19 assistance, including: prepared MLK as decontamination facility; installed Plexiglas shields for all departments; installed higher MERV rated filters; established   133  supply center for all departments; and provided decontamination needs for all departments.  Facilities Reorganization: Reallocated annual budget for seasonal labor to hire (7) permanent FTEs to provide higher level of service year-round. RECREATION SERVICES  Through public engagement process, designed and bid Chapel Hill neighborhood park and Phase 1 of the A Street Sports Complex.  Held CommUNITY Senior Picnic with over 900 participants and brought in over $11,000 of sponsorships for event.  Developed and sent out community Parks and Recreation survey  Received Scholarship funding through CDBG for up to $4,000 for programs  Started Summer Movie Series – Movies shown on the 3rd Friday each of June, July and August with an average attendance of over 100 people  Partnered with the Mid-Columbia Libraries to host two events in Memorial Park with an attendance of over 250 at each.  Received $350,000 RCO Youth Athletic Facilities Grant for the development of Phase 1 of the A Street sports complex.  Held successful Grand Old 4th of July Celebration with an estimated 20,000 people in attendance at the parade (2019).  Held successful Lampson Cable Bridge Run with 2,099 registered participants.  Partnered with Kennewick and Richland to hold the Tri-Cities Carpool Cinema, a drive-in style movie series. We had over 300 cars in attendance in Pasco. Received $1,500 each in sponsorship from Numerica and Windemere. (COVID19 Program)  Held first ever HalloWeekend Cinema, Drive-in Movies with approximately 130 cars in attendance. Received $2,600 in sponsorship assistance.  Published (13) weeks of Staycation daily educational and active virtual activities for residents to participate in during school closure. (COVID19 Program)  Successfully converted annual Grand Old 4th of July Celebration into a virtual and self-led celebration. (COVID19 Program)  Established ongoing COVID19 PPE distribution for the City. (COVID19 Program)  Cross-trained staff to support Finance-Customer Service and Municipal Court. (COVID19 Program)  Assisted Ben Franklin Health District with masking surveys throughout to curb COVID19 cases regionally. (COVID19 Program)  Held (3) successful virtual running and multi-sport challenges to help keep people healthy, active, and outdoors. (COVID19 Program) BUDGET NARRATIVE The Administrative and Community Services Department will be furthering its annual community impact in the 2021-2022 biennial budget. Each goal, priority, and action item is intended to implement and serve the City Council and Pasco community goals of Quality of Life, Financial Sustainability, Economic Vitality, and Community Identity. The ACS department houses diverse areas of focus, comprising mainly of external services such as Indigent Defense, Parks, and Recreation, city Facilities and venues, and vital underlying infrastructure support   134  such as Technology and Information Services, and Public records stewardship through the Pasco City Clerk’s office. Our focus will remain on identifying the baseline data to assess our current service levels in all programs. Following this, we will utilize this information to create and maintain programs and service levels that find a balance between current resource allocation and service to our residents. From this, all new programs, projects, and facilities will be carefully proposed and completed in a manner conforming to the city’s mission. Through the past two years, ACS has improved service delivery for public records with the establishment of a new online submittal system. Additionally, ACS was able to reallocate a position to establish a Deputy City Clerk position, which enabled better service delivery and additional stewardship of our legal requirements. Information services was able to add additional staff members and enhance existing positions to provide for greater level of service and additional expertise for the community. Recreation continued their program delivery, including new festivals such as Winterfest, as well as putting on a very success regional senior luncheon that saw record attendance. In early 2020, the City Council approved the addition of seven full=time employee to the Parks and Facilities division (reallocated from the season staff budget) in order to provide more permanent and year round service to our parks and facilities. Additionally, comprehensive and profound strategic planning was conducted for the Information Services division, as well as internal assessment of service delivery across the department. In the coming biennium, ACS intends to grow its facilities, services, and programs. The construction of long awaited parks such as Chapel Hill and the A Street Sporting Complex will be underway, as well as assessments of our current facilities and a look at the future in planning for the locations of the new Community Center and the NW Community Park. IS intends to grow and establish additional means by which technology can service our growing city and staff, as well as look at how technology help in the enhancing delivery of secure service to both internal and external customers. The City Clerk’s office continues to grow its outreach and will be focused on continual service of the public records requests and enhancing the Boards and Commissions’ skillsets in order to better improve their service to the City and the community. Recreation will continue to provide standard services for sports leagues, after school programs, and senior services, as well as continue to find ways to enhance and improve community events such as the Grand Old 4th of July and the Lampson Cable Bridge run. ACS Addition/subtractions from the budget to meet a certain goal ‐ Facilities Assessment (General Fund): o $100,000 for a comprehensive assessment for the location of a new community center in addition to an analysis of all existing facilities  Goal: Financial Sustainability, Quality of Life, Economic Vitality, Community Identity   135  ‐ Parks Master Plan (General Fund): o $125,000 for a comprehensive update to the Parks and Recreation Master Plan.  Goal: Financial Sustainability, Quality of Life, Economic Vitality, Community Identity ‐ Police Training Facility Assessment (General Fund): o $50,000 to assess the Police Training Facility  Goal: Financial Sustainability, Community Safety, Community Identity ‐ Implementation of Building, Permitting, and Fire Inspection Software Replacement (General Fund):: o $250,000 for complete software replacement  Goal: Financial Sustainability, Quality of Life, Economic Vitality, ‐ Renewal of Microsoft Enterprise Agreement Contract and Office 365 Implementation (General Fund): o $147,000 annually  Goal: Financial Sustainability ‐ Implementation of Secondary Check Scanning System (General Fund): o $20,000 To expand and improvement financial sustainability  Goal: Financial Sustainability ‐ Addition of 911 Citizen Survey Response App (General Fund): o $40,000/for two years  Goal: Quality of Life, Community Safety ‐ Police Community Room ADA Video/Audio Upgrades (General Fund): o $21,000 one time  Goal: Quality of Life, Community Safety 2020-2021 GOALS ADMINISTRATION  Conduct strategic plan for Parks and Facilities  Conduct Strategic plan for Recreation Services  Comprehensive update to Parks and Facilities Master Plan  Complete location Assessment for Community Center  Work with the Pasco Public Facilities District on ballot initiative for Aquatic Center  Complete construction of new Animal Shelter  Audit departmental files and documents including:  Storage boxes at CI  Office file cabinets  Archive and develop a tracking system for all ACS Contracts/Agreements  Audit City Clerk’s Vault and develop tracking system CITY CLERK  Implementation of the replacement Public Records Requests software platform. The new software program is used by a majority of cities and other public entities throughout Washington State and will afford consistency from one agency to another assisting requesters.   136   Implement a City-wide records management program, review and dispose of backlogged records; set up records retention policies for timely destruction – following the Washington State Archivist’s Records Retention Schedules.  Update enterprise content management software (Laserfiche) to meet City-wide records management needs including a “scan and toss” policy.\  Establish a City-wide electronic signature (E-Signature) policy.  Create or purchase a database for the management of the boards and commissions members.  Create an on-boarding training for new board and commission members.  Create an annual training schedule for current board and commission members to develop their skills as effective board/commission members.  Continued professional development of the City Clerk’s Office staff to ensure that staff is up-to-date on the requirements and laws affecting public records, records management, and imparting that training with other staff, boards and commissions members, etc.   Refine and standardize City Council and boards and commission agenda packets.   INFORMATION SERVICES (I.S.)  Replacement of building permit, fire inspection, and code enforcement system (CRW Trak- it) with application using the latest technology, improved financial integration, better staff field access, enterprise reporting, dashboard capabilities, and online permitting and payment potential.  Enterprise wide implementation of Microsoft Office 365, including standard office suite, expanded productivity applications, and cloud based email to improve continuity of operations.  Implementation and conversion support for the New World\Tyler replacement Utility Billing System.  Enterprise implementation, upgrade, and support of police Axon Taser, body camera, and in-car camera system.  Implementation of Locution Fire Station Dispatch Alerting System at all four fire stations.  Implementation of video arraignment and remote hearing system at Pasco Municipal Court via partnership with existing Franklin County system.  Completion of Geodetic Control Point Survey to update, replace, or locate survey control points within the city’s growth boundary to improve overall mapping, data collection, development and construction projects to support continued growth. PARKS AND FACILITIES  Complete construction A Street Sports Complex (Council Goal – Quality of Life #3)  Complete construction of the Chapel Hill Park  Complete construction of restroom/concession building at Highland Park  Complete Schlagel Park/Pasco Boat Basin project  Purchase land for NW Community Park  Establish baseline parks, boulevard, and facility data to determine future resource needs and allocation.   137  RECREATION SERVICES  Work together with PD to construct 2 to 4 Mini-pitch soccer courts (Council Goal – Quality of Life #3)  Transition the Grand Old 4th of July Parade to a new longer route to accommodate the growing number of spectators. (Council Goal – Economic Vitality #7)  Work with HAPO Center staff and others to host the Barn Burner Community Event. (Council Goal – Community Identity #2)  Work with USTA and community groups to design and come up with a plan for the development of tennis/pickleball courts in west Pasco  Continue 2020’s successful Halloween events in 2021 and beyond. (Council Goal – Community Identity #2)  Institute offering (2) virtual challenges per year. (Council Goal – Community Identity #2)  Book and hold at least twenty (20) baseball/softball tournaments per year at the Pasco Sporting Complex and other City owned fields. (Council Goal – Economic Vitality #7)  Expand youth Recreation Services sports league participation from 600 to 800+ per year.  Coordinate with Franklin Irrigation District, HOAs, and gas company to design and solidify a path forward to add 10+ miles of additional non-motorized run/bike trails (Council Goal – Quality of Life #1)   138  Community & Economic Development CITY MANAGER COMMUNITY & ECONOMIC DEVELOPMENT DIRECTOR CITY ENGINEER Engineering Tech 3 Construction Manager Construction Inspector BLOCK GRANT ADMINISTRATOR SENIOR PLANNER Associate Planner Planner 1 INSPECTION SERVICES MANAGER Code Enforcement Officers Building Inspectors Permit Technicians Plans Examiner Administrative Assistant II   139  CED 2017 Actual 2018 Actual 2019-2020 Budget 2021-2022 Budget Revenue Licenses & Permits 1,431,927 1,516,484 2,700,000 3,684,978 Intergovernmental - 5,000 - - Charges Goods & Services 363,267 410,454 836,000 892,412 Miscellaneous - 860 - - Department Total 1,795,194 1,932,798 3,536,000 4,577,390 CED 2017 Actual 2018 Actual 2019-2020 Budget 2021-2022 Budget Expenditures Salaries 1,010,589 974,261 2,124,921 3,676,145 Personnel Benefits 463,719 441,715 982,772 1,578,534 Supplies 18,279 18,035 51,049 60,000 Services 255,465 462,486 719,603 1,049,968 Capital Outlays - 19,904 - - Department Total 1,748,052 1,916,401 3,878,345 6,364,647 Community & Economic Development Personnel Summary Number of Employees (FTE) Position 2017 2018 2019 2020 2021 2022 Community Development Director 1 1 1 1 1 1 City Engineer* 0 0 0 1 1 1 Associate Engineer 0 0 0 1 1 1 Engineering Tech III* 0 0 0 2 2 2 Construction Manager* 0 0 0 1 1 1 Inspection Services Manager 1 1 1 1 1 1 Construction Inspector* 0 0 0 3 3 3 Senior Planner 1 1 1 1 1 1 Associate Planner 2 1 1 1 1 1 Plans Examiner 1 1 1 1 1 1 Building Inspector 2 2 2 2 2 2 Planner 1 - 1 1 1 1 1 Lead Code Enforcement Officer 0 0 0 1 1 1 Code Enforcement Officer 5 5 5 4 4 4 Administrative Assistant II 1 1 1 1 1 1 Permit Coordinator 2 2 2 3 3 3 Department Assistant II 0 0 0 0 0 0 Total 16 16 16 25 25 25 2020 – Development Review division was moved from Public Works to CED (8 FTE). No change proposed from 2020 to 2021.   140  COMMUNITY & ECONOMIC DEVELOPMENT MISSION The Department focus is long- and short-term physical planning, expanding the City’s tax base, providing code compliance for construction and civic activities and administration of the City’s Federal Block Grant entitlement. MAJOR FUNCTIONS Community and Economic Development Department houses Community Planning, Engineering Development Review, Economic Development, Inspection Services and Community Development Block Grant divisions for the City of Pasco. ECONOMIC DEVELOPMENT Fosters growth of existing business, attraction of new business and positions the community for expansion of the tax base through planned provision of appropriate land use, utilities and assistance in project permitting. COMMUNITY PLANNING/ENGINEERING Provides predictability in zoning, subdivision, annexation and development and aesthetic regulations through the administration of the State Environmental Policy Act (SEPA), Growth Management Act (GMA) and Pasco Municipal Code (PMC); Administration of the City’s Development Standards and Long Range Utility and Transportation Plan. INSPECTION SERVICES Protects the health and safety of the community through the provisions of the International Building Codes by construction plan reviews, building and fire inspections, and code and nuisance enforcement and abatement processes. COMMUNITY DEVELOPMENT BLOCK GRANT Administers the City’s entitlement Federal grants to address the City’s physical development, revitalization and housing needs that directly benefit low- and moderate-income persons and families. 2019-2020 KEY ACCOMPLISHMENTS  Provided continued public outreach, education and community support by participating in Block Watch and Landlord/Tenant organization presentations that focused on Code Enforcement, Chronic Nuisance Ordinance, building permit and fire safety inspection process.  Initiated and supervised emergency abatements minimizing public safety risks from illegal occupation of dilapidated and burned structures, and secured premises preventing unlawful entry.  Implemented a revised Development review process with Planning, Fire, Engineering and applicable agencies which provides greater consistency and greater integration of city development regulations for applicants of projects.   141   Incorporated development review engineering staff into the department to form a one- stop permitting center to speed review times and better coordinate city review of development proposals.  Worked extensively with the Port of Pasco in the development of a new zoning classification for the marine for Osprey Pointe area, efforts are expected to result in facilitated private investment into a mixed-use environment on Port of Pasco controlled land.  Completed Phase I of sign code revision process which focused on the regulation structure and reading characteristics to provide a document that is much more intuitive and user friendly.  Completed two-thirds of the underrepresented communities grant and historical inventory process, which documented the physical and social contributions of the African American community to Pasco’s history. Received an Association of Washington Cities Award for the effort. Approximately one third of the inventory is yet to be completed pending relaxation of COVID19 restrictions.  Completed the Urban Area expansion and the Comprehensive Plan document production and Environmental Impact Statement (EIS) which analyzed alternatives for expansion of the Urban Area and develop the goal and policy document, including technical support for the City’s Comprehensive Plan.  Implemented full use of the Hearing Examiner system for permit and project review which has resulted in a much more focused approach to project permitting and has reduced the City legal exposure for the same.  Implemented the CDBG/CV Coronavirus Aid, Relief, and Economic Security (CARES) business assistance grants which utilized federal block grant monies to provide business assistance for those local businesses that have experienced adverse impacts related to COVID19 pandemic.  Received a state grant for reimbursement of staff efforts related to providing increased affordable housing options within the Pasco Municipal Code (PMC). BUDGET NARRATIVE Additions to the Budget to meet a certain goal (Downtown Revitalization and development of a Comprehensive Economic Development plan)  Downtown Master Plan/Sign Code Update; Phase II Sign Code revisions and Economic Development Plan (estimated at $65K and $50K and $50K respectively) Additions to the Budget to meet a certain goal (Promotion of the community as a desirable place for commercial/industrial development and predictability in project review)  Funding requested to continue to Phase II of the Development Regulation analysis ($20K with additional funding provided by Public Works and Water/Sewer Funds)  Reflects incorporation of Development Review Services (Engineering staff) into Community and Economic Development Department to improve coordination and efficiency (increased budget amounts from previous years for personnel/supplies/training)   142  Additions to the Budget to meet a certain goal (Quality of Life -- overall Council Goal)  Funding requested to develop and implement a Housing Capacity Plan to analyze areas to focus the state sales tax set-aside for increasing housing affordability (estimated at $40K) The Planning Commission and Council will also see a series of code revisions proposed in the coming year for:  Increased housing affordability through efforts stemming from HB 1923 and HB 1406  Revisions to development regulations relating to Street Connectivity (Council Goal – “Promote a highly functional multi-modal transportation system”)  Completion of the Broadmoor Master Plan (Economic Vitality) 2021-2022 GOALS  Initiation and completion of the Downtown Master Plan coordinating both the Phase II effort for the City sign code and the public art policy that is expected to be formulated in consultation with the recently appointed Arts and Culture Commission.  Initiate and complete Phase II of the sign code revision, which will focus on areas specific regulations recognizing the diversity of signage needs within the community.  Complete the phase two review of the City development regulation analysts and overhaul which is analyzing all development review chapters of the PMC and organizing for increase readability and consistency.  Initiate and complete a housing capacity plan which emphasizes city’s review of the HB1406 “funding source” a existing sales tax “set aside” for increasing affordability and housing options within the community.  Facilitate a smooth transition with upcoming State Building and Energy Code update with the construction industry and the community by continued outreach and communication.  Complete integration of Development Review functions into the One-Stop Permit Center to fully implement the “one-stop” concept of permitting for the private development community.  Develop and implement a Rental Rehabilitation Program with HOME funds in coordination and consultation with Code Enforcement activities.   143    144  Finance CITY MANAGER FINANCE DIRECTOR FINANCE MANAGER CUSTOMER SERVICE MANAGER Accounting Clerk Department Assistant II LEAD ACCOUNTANT Staff Accountant Department Assistant II Procurement Specialist Payroll Specialist Systems Adminstrator Administrative Assistant II   145  Finance 2017 Actual 2018 Actual 2019-2020 Budget 2021-2022 Budget Revenue Charges Goods & Services 478,230 442,786 883,000 632,423 Miscellaneous - - - - Department Total 478,230 442,786 883,000 632,423 Finance 2017 Actual 2018 Actual 2019-2020 Budget 2021-2022 Budget Expenditures Salaries 998,242 1,048,405 2,355,613 2,716,164 Personnel Benefits 433,731 464,202 1,036,854 1,044,967 Supplies 26,755 33,604 38,842 38,194 Services 737,582 724,295 1,674,564 1,737,143 Capital Outlays - - - 30,000 Department Total 2,196,310 2,270,506 5,105,873 5,566,468 Finance Personnel Summary Number of Employees (FTE) Position 2017 2018 2019 2020 2021 2022 Finance Director 1 0.9 0.9 0.9 0.9 0.9 Finance Manager - - - 1 1 1 Customer Service Manager 1 1 1 1 1 1 Lead Accountant 2 2 2 1.25 1.25 1.25 Systems Administrator - - 1 1 1 1 Staff Accountant 3 2.9 2.9 2.9 2.9 2.9 Procurement Specialist - 1 1 1 1 1 Payroll Specialist - 1 1 1 1 1 Accounting Clerk 1 1 1 1 1 1 Administrative Assistant II - 1 1 1 1 1 Department Assistant II 8 7 6 5 5 5 Total 16 17.8 17.8 17.05 17.05 17.05 2020 - Business and Rental Licensing position moved from Finance to CED (1 FTE). Staff accountant funded by Ambulance and General Fund (75%/25%) was added (1 FTE). No change proposed from 2020 to 2021.   146  FINANCE MISSION To ensure financial stability and to support citizens and City operations by providing timely, accurate, clear, and complete information, while maintaining a high level of compliance with Federal, State, and local rules and regulations. MAJOR FUNCTIONS The Finance Department manages all financial operations of City Departments in accordance with generally accepted principles of government accounting. The Finance Director provides comprehensive financial information to City Council and management and maintains appropriate internal controls and oversight of all financial functions. The department is comprised of two divisions: general accounting, payroll, and customer service/utility billing. ACCOUNTING Accounting staff are responsible for many functions, including: Accounts Receivable and Payable, Budget, Capital Improvement Plan, Comprehensive Annual Financial Report, Investments, General Accounting, Analysis, Grant Reporting, Local Improvement Districts (LID’s), and Debt Service. CUSTOMER SERVICE/UTILITY BILLING Customer Service/Utility Billing bills customers for City utilities, facilitates business and dog licensing and provides central cashiering for all City services. All functions associated with billing and collection for City utilities are accounted for in this division. PAYROLL Payroll is responsible for accurate processing of submitted timesheets, management of leave accruals, payments of taxes to Internal Revenue Service (IRS), Department of Revenue (DOR), Labor and Industries (L&I), and Employment Services Department (ESD). 2019-2020 KEY ACCOMPLISHMENTS ACCOUNTING  Hired Systems Administrator with vacant accounting staff position to meet technological demands of Finance Department.  Created a comprehensive and robust financial report dashboard to: o Provide user friendly, accurate, and detailed financial data o Facilitate large scale and long-term data analysis o Increase efficiency o Increase transparency  Established a robust procurement system module within the City’s financial system to streamline procurement processes to increase efficiency, transparency, and standardization.   147   Implemented Comprehensive Annual Financial Report (CAFR) software to accommodate City’s increasing financial complexity and migrate from the current process with Microsoft Excel that is manual and prone to errors.  Completed successful implementation of Chapel Hill LID and identified appropriate LID management structure. Replacement of Permitting and Planning software will complete the creation of the management structure.  Issued LTGO and revenue bonds at historically low rates, saving the City significant sum in debt service. Maintained City’s revenue bond ratings during a worsening pandemic. Refunded existing bonds and refinanced them with lower interest rates to save $1.3 million in debt service costs.  Implemented Phase II of strategic plan for the department. Proactive decision making utilizing the knowledge gained, and tools built in the last four years to support the City and its residents in an optimal manner. CUSTOMER SERVICE/UTILITY BILLING  Participated in implementation of AskPasco, City’s 311 system to improve customer service and provide a central avenue for residents and visitors to engage with the City. This implementation is currently ongoing and is expected to be rolled out to all residents at the beginning of 2021.  Identified replacement for aging Utility Billing Software which no longer provides updates or enhancements to the program. Implementation for the new system will begin in 2022 to ensure sufficient allocation of resources to the project for a successful implementation.  Created a comprehensive operation manual to include fiscal policies as well as operating procedures to improve department succession planning ensuring optimal and continuous operation. This process is ongoing.  Changed operational structure to continue undisrupted customer service assistance during the pandemic. PAYROLL  Implemented employee self-service system to allow employees access to their payroll information and request changes online. Made payroll processes for the department and all staff more efficient and transparent.  Implemented electronic timesheet to optimize payroll, reduce errors, and increase efficiency for staff across all departments. This process is currently ongoing and will be completed by 1/31/2021. BUDGET NARRATIVE Addition/ subtractions from the budget to meet a certain goal:  Implementation of Utility Billing System (Utility & Ambulance Fund) – Budget addition of $135,000 to replace aging utility billing system. o Goal: Financial Sustainability - Regular evaluation of services and programs to confirm importance to community, adequacy, and cost-benefit; Instill and promote an organizational culture of customer service across all business lines.   148   Self-service Kiosks (Utility Fund) – Budget addition of $30,000 to install kiosks to provide 24 hours, major payments modes, and all local utility providers for wrap around service. Partnership with local utility providers will allow for multiple location but investment on just one site. This will also allow the City to plan for emergency situations like COVID19 where customers will have physical locations to make payments. o Goal: Financial Sustainability - Instill and promote an organizational culture of customer service across all business lines; Regular evaluation of services and programs to confirm importance to community, adequacy, and cost-benefit; Ongoing evaluation of costs, processes and performance associated with delivery of City services including customer feedback and satisfaction, staffing, facilities and partnership opportunities.  Cost Allocation Study: Budget addition of $20,000 in order to update financial modeling o Goal: Financial Sustainability - Continuation of cost of service/recovery targets in evaluating City services; Regular evaluation of services and programs to confirm importance to community, adequacy, and cost-benefit.  Water and Sewer Rate Study (Utility Fund): Budget addition of $75,000 to update water and sewer rates study o Goal: Financial Sustainability - Continuation of cost of service/recovery targets in evaluating City services; Regular evaluation of services and programs to confirm importance to community, adequacy, and cost-benefit.  Back up for Payroll Function (General Fund): No budget impact. Allocate Administrative Assistant position for the Finance Department to Payroll function to ensure that City has a consistent backup to one of the most important function internally (paying employees) and externally (reporting income and paying taxes to IRS, DOR, L&I, ESD etc.) o Goal: Financial Sustainability - Ongoing evaluation of costs, processes and performance associated with delivery of City services including customer feedback and satisfaction, staffing, facilities and partnership opportunities.  Tableau (General Fund): Budget addition of $3,000 to create performance dashboard and data visualization of financial reports for effective interpretation. o Goal: Financial Sustainability - Ongoing evaluation of costs, processes and performance associated with delivery of City services including customer feedback and satisfaction, staffing, facilities and partnership opportunities. 2021-2022 GOALS ACCOUNTING  Continue towards full implementation of the City’s Financial System and stabilization of the program to prolong its usage.  Create dashboard for data visualization to facilitate operations across the City.  Partner with Fire Department to synchronize scheduling and time accounting processes.  Continue evaluating debt structure to identify opportunity for savings.   149   Model the City’s cash flow needs to maximize investment opportunities. This is a long- standing goal that was dependent on our ability to create the financial dashboard that could provide us with necessary data. With the successful completion of the financial dashboard, we expect to complete this task during 2021-2022 biennium.  Review all rates and fees for sustainability and cost recovery to create a comprehensive fee schedule encapsulating rate and fee charges throughout the City. o Complete rate study for water and sewer services o Review critical rates for cost of service vs. recovery and equitability o Complete update of Cost Allocation study to ensure proper allocation of overhead charges across all funds  Research market factors and issue bonds at ideal market conditions to maximize City’s finances. Maintain City’s AA- ratings for Revenue and General Obligation bonds.  Complete long-term financial plan for General Fund to enhance City’s long-term financial viability and identify financial trends and issues for proactive resolution. The model is complete, but COVID-19 pandemic has introduced the need to reevaluate base assumptions.  Create comprehensive Finance Manual to include fiscal policies as well as operating procedures to improve department succession planning ensuring optimal and continuous operation.  Create robust interdepartmental work order system to maximize internal city resources and ensure accurate accounting of cost.  Participate in implementation for replacement of permitting software system replacement.  Work on goals identified within Phase II of strategic plan for the department. Proactive decision making utilizing the knowledge gained, and tools built in the last four year to support the City and its residents in an optimal manner. CUSTOMER SERVICE/UTILITY BILLING  Successful implementation of the Utility Billing system.  Provide standalone kiosks capable to taking major forms of payment methods. Partner with local utility providers to allow for customers to pay for any utility payments within the kiosks, increasing payment options for customers and decreasing the cost of such service for the utility providers.  Participate in and support city-wide customer service plan efforts.  Continue support to customers with increased focus on customers impacted by COVID-19 pandemic.  Submit a plan for a possible rate reduction for low-income long-term disabled citizens. The Department contacts citizens believed to fit criterion on an ad-hoc basis. The implementation of new animal and business licensing has delayed creation of a formal plan. PAYROLL  Support City’s electronic timesheet and self-service program.  Address staffing issues. Currently Payroll department is staffed by one person – a risk in terms of financial process and operational resiliency.   150   Identify and implement process improvements to increase efficiency, capacity, and accuracy.   151    152  Police   153  Police 2017 Actual 2018 Actual 2019-2020 Budget 2021-2022 Budget Revenue Licenses & Permits 13,763 14,366 30,000 30,000 Intergovernmental 86,738 117,904 498,328 442,724 Charges Goods & Services 431,447 437,991 877,000 853,573 Fines & Penalties 660,277 836,748 1,590,000 2,336,820 Miscellaneous 660,277 836,748 1,590,000 2,336,820 Department Total 1,852,502 2,243,757 4,585,328 5,999,937 Police 2017 Actual 2018 Actual 2019-2020 Budget 2021-2022 Budget Expenditures Salaries 8,274,589 8,579,694 18,055,740 20,386,144 Personnel Benefits 2,909,240 2,897,442 6,306,434 6,708,146 Supplies 283,678 362,404 696,040 859,351 Services 5,010,759 4,862,814 10,465,970 9,343,735 Capital Outlays 10,297 51,164 - 8,500 Department Total 16,488,563 16,753,518 35,524,184 37,305,876   154  Police Personnel Summary Number of Employees (FTE) Position 2017 2018 2019 2020 2021 2022 Police Chief 1 1 1 1 1 1 Deputy Police Chief - 1 1 1 1 1 Captain 3 2 2 2 2 2 Sergeant 10 10 8 8 8 8 Sergeant - Detective 0 0 1 1 1 1 Sergeant - SCU 0 0 1 1 1 1 Police Officer 50 50 51 51 51 51 Police Officer - C.O.P.S - 4 4 4 4 4 Police Officer - Detective 7 7 6 6 6 6 Police Officer - DEA/VCTF Detective 2 2 2 2 2 2 Police Officer - METRO Detective 1 1 1 1 1 1 Police Officer - SCU Detective 4 4 4 4 4 4 Crime Specialist - Analyst 1 1 1 1 1 1 Crime Specialist - Domestic Violence 1 - - - - - Crime Specialist - Evidence 1 1 1 1 1 1 Lead Police Services Specialist 1 1 1 1 1 1 Police Services Specialist 4 4 4 4 4 4 Accreditation Program Coordinator - - 1 1 1 1 Administrative Assistant II 1 1 1 1 1 1 Administrative Assistant I 1 1 1 1 1 1 Total 88 91 92 92 92 92 No change proposed from 2020 to 2021.   155  POLICE MISSION We are dedicated to serving our community with excellent law enforcement services. Vision – We will ensure Pasco is a safe place to work, live, and visit. We will do this by engaging with our community to strengthen their trust in us. We will maximize technology and best practices to solve crime and make Pasco a safer community. We will create a culture for our employees to maximize their talents and will recognize their value in accomplishing our mission Values – Passion: We are passionate about policing Pasco with the highest of ethics and integrity while being transparent with our community. Pride: We take pride in our department and the professional service we provide that instills confidence from the community. Service: We serve our diverse community by treating everyone with dignity and respect while honoring our oath with humility and empathy MAJOR FUNCTIONS The Pasco Police Department consists of an authorized strength of 82 commissioned officers consisting of a Chief, Deputy Chief, 2 Captains, 10 Sergeants, and 68 Officers and Detectives. Additionally, 10 staff providing administrative support for police records, evidence and property, crime analysis, and department leadership. The department is fully committed to community-oriented policing and has adopted this proven policy philosophy. Special services the department provides are, major crime investigations, canine, Area (neighborhood) Resource Officers, School Resource Officers, Street Crimes Investigators, SWAT, METRO drug unit, and detectives assigned to task forces including FBI, DEA and U.S. Marshalls. In addition, the police department provides community policing services such as Coffee with a Cop, Citizen's Academy (English and Spanish) and a robust platform on social media to engage with the community. 2019-2020 KEY ACCOMPLISHMENTS  Achieved national accreditation through Commission of Accreditation for Law Enforcement Agencies (CALEA) as well as state accreditation through Washington Association of Sheriffs and Police Chiefs (WASPC). This gives Pasco the unique qualification of being only the second law enforcement agency in Washington State to hold dual accreditation.  The OverDose “OD” Mapping computer-based system is fully operational within the department. This data provides surveillance data across jurisdictions by tracking related overdose deaths and providing strategic analysis across jurisdictions.  Homeless Liaison Officer (HLO) program has been deployed to assist in the reduction of people experiencing homelessness and provide resources to supportive services rather than incarceration in order to reduce negative police interactions.   156   Mental Health Professionals have been embedded within the Field Operations Division and are available on call 24/7 for crisis response.  Police Department personnel worked directly with Lourdes to complete an exercise to develop and deliver Mass Causality Response Training to Lourdes Health employees and identify areas of improvement.  A partnership created to enhance offender accountability with the Department of Corrections (DOC) by bringing two Community Correction Officers into the Street Crimes Unit.  Created policy and procedure in conjunction with the City Clerk’s office on the handling of all Body-Worn Camera video requests.  Completed records management of backlogged police records which resulted in the elimination of (10) years of records in accordance with the Washington State Archivist’s Records Retention Schedules.  Reduced duplication of records for all police (current, past, and not hired) personnel background files in conjunction with Human Resources Department. BUDGET NARRATIVE 1. Addition/ subtractions from the budget to meet a certain goal  Addition: o Strategic Master Plan: Budget addition of $120,000 requested in order to evaluate the future service levels of the department to insure sustainability, public safety, and crime control over the next 5-10 years.  Goal: Financial Sustainability, Community Safety, Community Identity o Axon Officer Safety Plan: Bolstering current programs (BWC, Taser, DVR) the department already maintains, bringing these programs on one evidence storage platform to create consistency, accountability and transparency. 2021-2022 budget reflects moving funds that were previously allocated in the equipment replacement.  Goal: Financial Sustainability, Community Safety, Community Identity  Subtraction: o Inmate Lodging: 2021-2022 overall budget reduction of $825,000 in inmate lodging expenses. This is primarily due to expected inmate booking restrictions throughout 2021 due to the COVID pandemic. o Inmate Medical Costs: 2021-2022 overall budget reduction of $86,000, due to newly established medical billing process (all invoices coded at Medicaid rate of pay) and continued billing agreements with local medical providers. o Overtime Costs: Captain Parramore created shift minimums that have significantly reduced annual overtime costs within the Field Operations Division. 2. Projects or programs planned to be accomplished with 2021-2022 budget   157   Programs: o Interview Now: Modern recruitment tool that offers candidate management and communication technology.  Goals Addressed: Community Identity o Unmanned Aircraft System: Training and implementation of “UAS” program in order to assist with crime scene documentation, public relations and enhance officer and public safety.  Goal: Community Safety, Community Identity o Spidr-Tech: Program to allow residents using cellular phones that request police service, in non-emergent calls, to be notified to the status of their call as well of allow the person to complete a customer service survey at the end of the police contact.  Goals Addressed: Community Safety, Community Identity & Financial Sustainability 2020-2021 GOALS  Develop Comprehensive Police Strategic Plan through a transparent process to evaluate future service levels of the department in order to insure sustainability, public safety, and crime control over the next 5-10 years.  Utilize Homeless Liaison Officers to partner with social services and other local service providers to reduce persons experiencing homelessness in the Pasco community.  Look for sustainable funding opportunities to continue partnership with Lourdes Health Services for embedded Mobile Outreach Professionals.  Continue community engagement opportunities such as; social media platform, Coffee with a Cop, Citizen’s Academy and multiple Block Watch groups.  Implement Spidr-Tech platform to evaluate customer service level and increase automated communications with the public.  Implement the recruiting software, Interview Now, and evaluate recruitment opportunities to enhance the best-qualified candidates for the police department with a continued focus on bilingual and minority recruits.  Continue to improve the professional image of the police department with a focus on transparency, branding, and marketing.  Complete Unmanned Aircraft System “UAS” training and implementation program. The UAS will be used for crime scene documentation, public relations (promotional videos), public search and rescue, and tactical operation to enhance officer and public safety.  Research and evaluate youth engagement through non-traditional sports programs in partnership with Recreation Services and corporate sponsors.  Complete training facility remodel study for regional approach to law enforcement training.   158  Fire   159  Fire 2017 Actual 2018 Actual 2019-2020 Budget 2021-2022 Budget Revenue Intergovernmental - 267,936 379,300 516,019 Charges Goods & Services 899,299 937,838 2,025,011 2,061,755 Miscellaneous 20,728 59,462 98,000 100,568 Department Total 920,027 1,265,236 2,502,311 2,678,342 Fire 2017 Actual 2018 Actual 2019-2020 Budget 2021-2022 Budget Expenditures Salaries 4,062,543 4,871,051 9,278,800 10,073,946 Personnel Benefits 1,175,635 1,352,569 2,667,628 2,520,355 Supplies 247,538 286,578 508,643 530,884 Services 2,127,620 1,338,547 2,661,269 3,487,230 Capital Outlays 47,218 27,085 150,000 77,000 Department Total 7,660,554 7,875,830 15,266,340 16,689,415 Fire Personnel Summary Number of Employees (FTE) Position 2017 2018 2019 2020 2021 2022 Fire Chief 0.5 0.5 0.5 0.5 0.5 0.5 Deputy Fire Chief 0.5 0.5 0.5 1 1 1 Battalion Chief 1.5 1.5 1.5 1.5 1.5 1.5 Training Officer/Captain 1 1 1 1 1 1 Community Risk Reduction Specialist 0.5 0.5 0.5 0.5 0.5 0.5 Captain 7 7 6 6 6 6 Lieutenant 5 5 6 6 5 5 Firefighters 20 23 23 23 22 22 Administrative Assistant II 0.5 0.5 0.5 0.5 0.5 0.5 Fire Protection Specialist 0.2 - - - - - Total 36.7 39.5 39.5 40 38 38 2021 – Moved 2 FTEs from General Fund to Ambulance Fund to align allocation of position to operation. No change proposed from 2020 to 2021.   160  FIRE MISSION Honorably protect and serve our community. MAJOR FUNCTIONS The Fire Department provides well-supervised, qualified and professional fire suppression services in accordance with National, State, and Local ordinance and industry standards. The department provides safety training and education for its members in accordance with WAC 296-305 requirements. In addition, the department provides technical rescue services as defined by NFPA 1670 and WAC 296-305 in the following disciplines: Rope Rescue, Confined Space Rescue, Trench and Excavation Rescue, Machinery and Vehicle Rescue, Structural Collapse Rescue and Water Rescue. The fire department is also responsible for Operations and Technician level hazardous materials responses within the City of Pasco. A division of the department, the Aircraft Rescue and Firefighting (ARFF) program provides services to the Tri-Cities Airport in accordance with Federal Aviation Administration (FAA) Regulations Part 139 and applicable advisory circulars, WAC 296-305 and applicable sections of NFPA 402. 2019-2020 KEY ACCOMPLISHMENTS  Completed design and construction for the relocation of Fire Station 83 to better serve the community inside the Urban Growth Area.  Completed design and began construction of Fire Station 84 and Fire Department Headquarters to replace temporary Fire Station 84 with a permanent station.  Completed design and construction for Fire Station 81 and 82 remodel projects.  Completed design and coordination of Fire Station Alerting System in Fire Station 81, 82, and 83.  Purchase of land for future Fire Station 85 to meet the expanding needs of the community and provide continuous level of service in the Urban Growth Area.  Purchase of land for Fire Station 87 in the King City industrial area in anticipation of continued industrial growth and future Casino location.  Identified alternative programmatic funding streams to meet expanding needs of the community including: secured Department of Ecology grant for Marine Spill Response; an Assistance to Fire Fighter Grant for Breathing Apparatus replacement; and a Homeland Security Grant to Develop a Fire Ground Command training lab at the training center.  Initiated the Pasco Resource Navigator (PRN) program to provide assistance to “at risk” citizens relying on 911 services.  Promoted fiscal stewardship through the leveraging of regionalization by conducting a Joint Recruit school with the City of Richland Fire Department.  Completed design and construction of a firefighter rehabilitation and restroom facility at regional training center. Project initiated future economic development opportunities with the completion of sanitary sewer improvements in coordination with the Port of Pasco.   161  COVID-19 REPSPONSE  Built on City-wide Continuation of Operations (COOP) training across all city departments provided in 2018 and 2019 to activate a COOP structure in response to the COVID pandemic.  Served as a resource to all departments in the early procurement and use of PPE and sanitation efforts.  Worked with Benton Franklin Health District to develop a high throughput community COVID19 test site funded by State Department of Health. BUDGET NARRATIVE The proposed 2021/2022 budget for fire services includes several initiatives the City Council’s “long-term goal of sustaining the Washington State Ratings Bureau Class 3 community rating” achieved in 2018, these include: 1. Develop and implement a Washington Survey and Rating Bureau (WSRB) maintenance/improvement plan to maintain a Protection Class 3 in the 2023 Rerate. 2. Identify a location and secure land for future Station 86 in the northwest area of the City. 3. Complete the purchase of land for future Station 87. 4. Complete design of future Station 85, on city-owned property located on Rd. 100. While the preliminary budget does not include additional staff or other enhancements to fire suppression services, the completion of the WSRB Maintenance and Improvement Plan listed above will provide a strategic roadmap to assist policy-makers and staff in determining the steps necessary to maintain the Class 3 community rating over the long-term. Progress in achieving the other items enumerated above will serve as a head start to implementation of future facilities needed to meet Council goals, including adopted six-minute response time standard. The proposed 2021/2022 ambulance budget provides a fifty percent increase in hours for the Resource Navigator position. This position is essential to working with the “at risk” elderly and the homeless population that rely on 911 services as their safety net. This increase fits with Councils goal of maintaining and enhancing behavioral health services. Similar to the fire suppression budget, the preliminary budget for ambulance services does provide for additional staffing in line functions, which would add to the department’s ability to maintain the protection class and maintain target response times. As with suppression, staffing and facilities will be considered as part of the WSRB Maintenance and Improvement Plan effort. At current growth rates, it will be difficult to maintain the Class 3 desired by Council without additional staffing, facilities and equipment. The WSRB Maintenance and Improvement Plan effort will commence early in the budget cycle as the next cyclical WSRB rerate for the City is scheduled for 2023. Council will need sufficient time to participate in the process, provide input, absorb plan conclusions and policy options and provide direction to staff in order to be ready for the next rerate. Depending on the conclusions and options determined by the   162  planning effort, and subsequent Council policy direction, the mid-biennial update may include recommendations for additional facilities and equipment. 2021-2022 GOALS  Develop and implement a Washington Survey and Rating Bureau (WSRB) maintenance/improvement plan to maintain a Protection Class 3 in the 2023 Rerate.  Complete design of Fire Station 85 to be located on Road 100.  Through an Assistance to Firefighters Grant acquire, train on and place in service new Self- Contained Breathing Apparatus (SCBA - 77 units).  Increase the availability and work of the Pasco Resource Navigator (PRN) program in providing assistance to “at risk” citizens relying on 911 services.  Develop and implement a funding stream for inspections of High Hazard Occupancies that are using and/or storing Hazardous Materials as defined under Federal law (Tier 2 reports).  Identify a location and secure land for Station 86 in the northwest area of the city.  Development of a Fire Impact Fee to assist in funding additional fire stations in developing areas of the city.  Replace approximately 100 portable radios that have reached end of life.  Equip and train a marine spill response program through Department of Ecology funding and partnerships with local tank farms, barging companies, and the railroad.   163      164  Public Works – Engineering CITY MANAGER PUBLIC WORKS DIRECTOR CIP MANAGER Senior Engineer Civil Engineer Instrumentation Tech Associate Engineer Engineering Tech I & II Project Specialist Administrative Assistant I ADMINISTRATIVE ASSISTANT II   165  ENGINEERING 2017 Actual 2018 Actual 2019-2020 Budget 2021-2022 Budget Revenue Charges Goods & Services 1,575,957 1,629,843 3,202,000 3,910,102 Department Total 1,575,957 1,629,843 3,202,000 3,910,102 ENGINEERING 2017 Actual 2018 Actual 2019-2020 Budget 2021-2022 Budget Expenditures Salaries 1,074,463 1,013,187 2,404,268 1,886,107 Personnel Benefits 439,093 393,852 1,025,830 693,262 Supplies 13,302 22,856 36,610 22,100 Services 200,125 126,335 324,713 266,304 Capital Outlays - - - - Department Total 1,726,983 1,556,230 3,791,421 2,867,773 Engineering Personnel Summary Number of Employees (FTE) Position 2017 2018 2019 2020 2021 2022 Public Works Director 0.15 0.15 0.15 0.15 0.15 0.15 City Engineer 1 1 1 0 0 0 Construction Manager 1 1 1 0 0 0 CIP Manager 0 0 0 1 1 1 Senior Engineer 3 3 3 2 3 3 Civil Engineer 2 2 1 1 2 2 Associate Engineer 3 1 1 1 1 1 Construction Inspector 3 3 3 0 0 0 Engineering Tech III 1 - 1 0 0 0 Engineering Tech II - 2 2 1 1 1 Engineering Tech I - 1 1 0 0 0 Contracts Specialist - 1 0 0 0 0 Project Support Specialist - 0 1 1 1 1 Administrative Assistant II 1.5 0.5 0.5 0.5 0.5 0.5 Administrative Assistant I 1 1 1 1 1 1 Total 16.65 16.65 16.65 8.65 10.65 10.65 2021 - Proposed addition of 1 Senior Engineer and 1 Civil Engineer (2 FTE).   166  PUBLIC WORKS – ENGINEERING MISSION Provide on-time/on-budget delivery of transportation and utility projects, at the highest level of quality, and with minimum disruptions in the project development cycle - from a project’s early planning and funding stages through design and construction to final completion. MAJOR FUNCTIONS The purpose of the Engineering Division is to plan, promote, construct, and maintain the City’s infrastructure, including: Streets, Water, Sewer, Irrigation, Stormwater, and Process Water. This activity provides technical expertise and contract administration in the planning, design, implementation and inspection of public works projects. In addition, the Engineerign Division supports Public Works divisions and other City deparments with professional engineering services by providing engineering consultation with the Community and Economic Development Department in the review of commercial, industrial development and subdivision infrastructure improvements, and maintains records of financial, physical and legal components of the projects and public rights-of-way. Another aspect of the Engineering Division is to plan for infrastructure improvements that will accommodate anticipated growth. This is accomplished through participation in the development and updating of the following planning documents: o Transportation Improvement Program o Capital Improvement Program o Comprehensive Water Plan o Comprehensive Sewer Plan o Comprehensive Irrigation Plan o Comprehensive Stormwater Plan o Comprehensive Stormwater Plan o Process Water Reuse Facility Plan o Wastewater Treatment Plant Facility Plan The overall goal of the Engineering Division is to provide exceptional customer service in the design and delivery of infrastructure projects that sustain a vibrant and growing community. 2019-2020 KEY ACCOMPLISHMENTS SANITARY SEWER/WASTEWATER TREATMENT PLANT (WWTP)  Completed the Wastewater Treatment Plant Facility Plan (CIP project #16019) and received Department of Ecology approval. The timely approval of the document allowed funding assistance to be awarded from Ecology for the design of the first phase of improvements.  Completed the Outfall Study for the WWTP outfall pipe, identified as a priority in the WWTP facility Plan.  Completed 100% design of the WWTP Improvements Phase 1 (CIP project #190073) which will provide for the expansion and upgrade of the WWTP to accommodate current and future users within the City. Funding assistance through the WA Department of Ecology’s Water Quality Program is being pursued for the construction of this project.   167   Completed the design and construction of a priority sanitary sewer lift station: Pearl Street Lift Station (CIP project #15002)  Completed final designs for three priority sanitary sewer lift stations: o Maitland Lift Station (CIP project #15003) – Under construction o Road 36 Lift Station (CIP project #16006) – Under construction o 9th & Washington Lift Station (CIP project #16007) – Under construction  Completed the construction of the Harris Road Sewer Transmission Main (CIP project #14001) which will help serve the fast-growing northwest area of Pasco including a currently proposed 300+ residential subdivision.  Completed design and bid the NW Area (Broadmoor) Sewer LID (CIP project #1800076). This project will extend sewer north and east from the Harris Road Sewer Transmission Main project to accommodate sewer needs for the fast-growing northwest area.  Completed final draft of the Addendum to the Sewer Comprehensive Plan. This planning document evaluates the needs of the existing and future municipal sewer system to serve both current and future ratepayers, identifies infrastructure needs for within the Urban Growth Boundary for a 20-year horizon. WATER TREATMENT PLANT/DISTRIBUTION  Completed the Butterfield Water Treatment Plant Chlorine Safety study.  Launched design of the improvements and expansion of the West Pasco Water Treatment Plant (CIP project #16008) that will double the capacity to 12 million gallons per day (MGD) allowing improved service to pressure zone 3.  Began the Butterfield Water Treatment Plant Facility Plan: a document that will provide a condition assessment and identify deficiencies at Pasco’s oldest water treatment plant and will recommend improvements for the next 20 years.  Completed Risk and Resiliency Assessment of the City’s drinking water system in accordance with the 2018 America’s Water Infrastructure Act (AWIA) requirements. This was an added project. STORMWATER  Completed the design of stormwater improvements along Industrial Way, eliminating a chronic flooding problem and preventing further damage to the roadway due to standing water. TRANSPORTATION/TRAFFIC  Completed the construction of the Oregon Avenue Safety Project – Phase 1 (CIP project #12002); improving safety, access management and mobility on a major north/south corridor.  Completed the design of the Lewis Street Overpass (CIP project #13007).  Worked with BSNF to complete the right-of-way agreements and with funding agencies to secure sufficient funding for the project. The project is currently ‘shovel ready’ and advancing towards construction.  Completed the construction of the Chapel Hill Blvd LID (CIP project #16030)  Advanced the right-of-way acquisition of the City-Wide Traffic Signal – Phase 2 (CIP project #17014). The proposed improvements will enhance the City’s ability to use emergency   168  vehicle preemption and signal coordination making our transportation system more efficient.  Completed the design of three projects in the Road 68 vicinity to improve the safety and traffic congestion on the Road 68/I-182/Burden Blvd corridor. This includes: o Completing design, bid and awarded the construction contract for the Wrigley Drive Extension (CIP project #15009), o Completed the design, bid and awarded the construction contract for the Road 68 Signage and Striping (CIP project #20008), o Completed the design of the Road 68 Widening South of I-182 (CIP project #20009).  Continued coordination with the Port of Pasco and Columbia Basin College for the Argent Road Widening (CIP project #12001) which will provide for growth at this important location serving multiple modes of travel and multiple types of users.  Successfully received $3.8M in funding for the Argent Road Widening Phase 3 (CIP project #12001) for design, right-of-way and construction.  Successfully received funding for the design, right-of-way and construction of safety improvements at the intersection of Road 68 and Court Street (CIP project #19043).  Completed a Roadway Safety Plan, a required document to pursue safety grants for transportation projects. This document identifies high crash areas in the City and investigates the potential solutions for those locations, providing a prioritized list of safety related improvements for the transportation system.  Supported development of the Transportation System Master Plan.  Completed two projects as part of the annual Overlay program (CIP project #20006): 20th Avenue Overlay and W. Court Street Overlay.  Completed a pavement assessment (scanning of Streets), which will be used as part of a Pavement Assessment rating system to inform the maintenance areas and priorities for future overlay projects in a more automated, and systematic way.  Met all federal fund obligation targets for Pasco projects; City eligible for future federal transportation grant funding. PROCESS WATER REUSE FACILITY (PWRF)  Completed the construction of the Columbia East Pump Station (CIP project #17003) which adds a new pump station for the food processors in the Commercial Avenue- Kahlotus Highway area and will allow for the diversion of 1.5 MGD of industrial (food processing) waste away from the municipal wastewater treatment plant and increasing capacity for additional food processors. Design and right-of-way acquisition for the associated Columbia East Force Main are complete, construction is schedule for 2021.  Completed the construction of the new PWRF Irrigation Pump Station Replacement (CIP project #18070) which will improve reliability and efficiency of food processor wastewater to irrigate the land treatment system farm circles.  Completed the PWRF Facility Plan/Engineering Report (CIP project # 16016); providing a ‘current conditions’ assessment, an in-depth evaluation of the PWRF pretreatment system and details the future needs of the PWRF. Also completed a Value Engineering study of the alternatives for the upgrade and expansion of the PWRF pretreatment facility. Further analysis is being performed to further vet the alternative of expanding the land treatment system.   169   Completed construction of the Foster Wells Force Main project. This was an added project at the request of the food processors in this service area. PARKS  Completed the design of the Peanuts Park Improvements (CIP project #16014). This project is a collaborative effort between the Public Works (PW), Administrative & Community Services (A&CS), and Community and Economic Development (C&ED) departments and Downtown Pasco Development Association (DPDA). PW is managing the design and construction contracts under the oversight of the A&CS (project owner), while C&ED staff was instrumental in securing project grant funding and coordinating this project with DPDA and other downtown private development and revitalization efforts. BUDGET NARRATIVE Quality of Life: Use of CDBG and other public and private capital to re-revitalize older neighborhoods and safe routes to essential services.  The Lewis Street Corridor Project  Pavement Preservation in older neighborhoods  Pedestrian/Sidewalk improvements targeted toward essential services Quality of Life: Coordination with the Pasco Public Facilities District to develop a public education campaign, financial analysis and prepare a ballot measure concerning the development of a regional aquatic facility for consideration by the people.  Assist with providing objective data and analysis; provide Project Management support as needed. Quality of Life: Ongoing efforts to improve efficiency and effectiveness of public resources in the delivery of municipal services, programs and long-term maintenance and viability of public facilities.  Continue with the Automated Water Meter program – installing AMR/AMI meters on all new large developments  Replace older large meters with more accurate AMR/AMI meters  Develop and Implement a 5-year Pavement Management Program based on the 2020 IMS pavement rating data  Plan for future and continue major capital improvements of WWTP, WPWTP, Water System, Sewer system expansion  Finalize Butterfield WTP Facility Plan w/ recommendations for upgrades/improvements Financial Sustainability: Continuation of cost of service/recovery targets in evaluating City services.  Complete PWRF Connection Charge Study  Complete Capital Expansion Fee Study  Assist CED in update to Traffic Impact Fees to help fund future transportation improvements  Assist Finance in Rate study updates for water, sewer, irrigation and stormwater  Assist with efforts to get O/H included in capital project grant reimbursements   170  Financial Sustainability: Ongoing evaluation of costs, processes and performance associated with delivery of City services including customer feedback and satisfaction, staffing, facilities and partnership opportunities.  Develop a Customer Satisfaction Survey for Public Works Operations and Engineering Financial Sustainability: Instill and promote an organizational culture of customer service across all business lines.  Provide Customer Service training for staff  Develop work plan on now to improve PW customer service Community Safety: Focusing on the long-term goal of sustaining a Washington State Rating Bureau Class 3 community rating.  Work with Fire to ensure planned water system improvements and annual maintenance, including hydrant flow testing and annual hydrant maintenance, to support this effort Community Safety: Leveraging infrastructure database of sidewalks, streetlights and pavement conditions, evaluate policies/methods to address needs and inequities.  Develop and Implement a 5-year Pavement Management Program based on IMS pavement rating data  Assist in developing a sidewalk and streetlight master plan identifying areas of needed improvements  Assist in securing local/state/federal funding for pavement, sidewalk and streetlight improvements Community Transportation Network: Commencement and completion of construction of the Lewis Street Overpass project.  Community Transportation Network: Continued emphasis on improvements in Road 68/I- 182/Burden Blvd. corridor to improve operation and safety.  Complete current improvement projects – Wrigley Drive, Signage and Striping and Road 68 Widening  Work with CED on developing a plan for further interchange/intersection improvements Community Transportation Network: Data-driven pro-active neighborhood traffic calming efforts.  Hire Consultant to provide analysis and identify resources to assist with this and other traffic-related efforts Continued collaboration with Ben-Franklin Transit to enhance mobility and access.  Coordinate with BFT on all transportation capital projects to ensure enhance mobility and access  Continue to coordinate with BFT on street improvements related to new bus stop locations   171  Completion of a Transportation System Master Plan and utilization of the recommendations to develop; policies, regulations, programs and projects that provide for greater connectivity, strategic investment, mobility, multi-modal systems, accessibility, efficiency and safety.  Continue to provide support to CED for the completion of the TSMP Economic Vitality: The construction of Peanuts Park and Farmers Market, and continued efforts to pursue streetscape/gateway upgrades.  Provide engineering and project management expertise and support to ACS as needed for this effort. 2021-2022 GOALS  Complete the design and construction of projects identified in the Council-adopted Capital Improvement Plan (CIP). These utility, transportation and park projects will support the current citizens and businesses as well as the continued economic development of the City.  Continue to pursue grants and low-interest loans from federal, state and local agencies for the design and construction of capital projects.  Manage construction of the multi-year Lewis Street Overpass project.  Complete the design and construction of the Lewis Street Corridor Project. This project will provide improvements along Lewis Street corridor between the Lewis Street Overpass and the Peanuts Park Revitalization projects.  Continue working on projects that improve safety and reduce congestion on the Road 68/I-182/Burden Blvd corridor. This includes construction of the Wrigley Drive Extension project, the Road 68 Signage and Striping project and the Road 68 Widening South of I- 182 project. Also work with CED and WSDOT to develop a plan for further interchange/intersection improvements.  Develop and implement a 5-year Pavement Management Program based on the 2020 Pavement Assessment and Rating.  Provide analysis to identify resources to assist in Data-driven pro-active Neighborhood Traffic Calming efforts and other traffic-related needs.  Continue planning and promoting advanced technology improvements at the Process Water Reuse Facility. Strategically develop phased improvements, focusing on immediate needs. This will include partnering with Finance to identify funding.  Complete the construction of the Columbia East Force Main Project and redirect Grimmway flows to the PWRF and away from the municipal WWTP.  Complete the construction of the NW sewer Area Trunk LID project.  Amend Comprehensive Sewer System Plan and continue developing capital projects and potential funding sources based on its recommendations.  Advance the construction of the multiyear Wastewater treatment Plant (WWTP) Phase 1 Improvements.  Complete the design of WWTP Phase 2 Improvements for the. Pursue funding for the construction of Phase 2 Improvements.  Finalize Butterfield WTP Facility Plan and Risk and Resiliency Assessment with recommendations for upgrades and improvements to the City’s Water System. Plan for the implementation of the recommendations.   172   Complete the West Pasco Water Treatment Plant (WPWTP) Expansion project to double the capacity to 12 million gallons per day.  Complete design of the Zone 3 Water System Improvements to (reservoir and transmission main), directly related to the Improvements to WPWTP.  Revisit utility masterplans to ensure new permit compliance (stormwater) and inclusion of new UGA areas (water, irrigation, stormwater).  Partner with Finance to develop methodology for making overhead costs eligible for grant reimbursement to improve cost recovery on CIP projects.  Continue to provide support to CED for the completion of the Transportation System Master Plan (TSMP). Begin developing capital projects and potential funding sources based on the recommendations of the TSMP. Incorporate these into an updated 2022-2027 Capital Improvement Plan and Transportation Improvement Plan.  Collaborate with Finance Department in the completion of the PWRF Connection Charge study and Capital Expansion Fee Study.  Collaborate with Finance Department in the update of the rate studies for water, sewer irrigation and stormwater.  Assist CED in the update of the Traffic Impact Fee to help fund future transportation improvements.  Assist CED in the development of a sidewalk and Streetlight master plan identifying areas of needed improvements  Continue to provide engineering and project management expertise and support to ACS for their major CIP projects.  Continue collaboration with Ben-Franklin Transit (BFT) to enhance mobility and accessibility. This will help improve the implementation of public transit improvements in conjunction with City projects.  Continue to coordinate consistently with private utilities in CIP projects to gain efficiency and minimize repeated disturbance to neighbors.  Continue to provide Engineering support for needed utilities and transportation improvements for the Broadmoor Master Plan and Environmental Impact Analysis.  Continue to provide Engineering support for needed utilities and transportation improvements for the Reimann Industrial Center Masterplan under development by the Port of Pasco.  In coordination with other City Departments, utilize collected data, and community input to assess community infrastructure needs and address inequities.   173  SPECIAL REVENUE FUNDS The City uses Special Revenue Funds to account for revenues that must be used by law for specific purposes. Examples are the City Street Fund and Arterial Street Fund that account for gasoline taxes received that can only be used for maintenance and improvements to roads and Streets, as well as the Ambulance Fund, that provides vital emergency medical services to our residents. Below is the list of all of City’s Special Revenue Funds: Fund 110 – Street Fund 120 – Arterial Street Fund 130 – Street Overlay Fund 140 – Community Development Block Grant (CDBG) Fund 142 – HOME Program Fund 144 – Neighborhood Stabilization Program (NSP) Fund 145 – Martin Luther King (MLK) Center Fund 150 – Ambulance Services Fund 160 – City View Cemetery Fund 161 – Boulevard Maintenance Fund 165 – Athletic Program Fund 166 – Golf Fund 170 – Senior Center Fund 180 – Multi-Modal Facility Fund 182 – School Impact Fees Fund 185 – Rivershore Trail and Marina Fund 188 – Special Assessment Lodging Fund 189 – Litter Abatement Fund 190 – Revolving Abatement Fund 191 – TRAC Development and Operating Fund 192 – Park Development Fund 193 – Capital Improvement Fund (Real Estate Excise Tax) Fund 194 – Economic Development Fund Fund 195 – Stadium Convention Center Fund 196 - Hotel/Motel Excise Tax   174  Ambulance Service Fund CITY MANAGER FIRE CHIEF DEPUTY FIRE CHIEF Battalion Chief Captain Lieutenant Paramedic EMS Officer Assistant EMS Officer Community Risk Reduction Officer Administrative Assistant II Department Assistant   175  AMBULANCE 2017 Actual 2018 Actual 2019-2020 Budget 2021-2022 Budget Revenues Budgeted Beg Fund Balance - - 1,228,550 1,568,672 Intergovernmental 1,270 1,309,352 3,107,720 3,728,600 Charges Goods & Services 6,429,273 4,668,870 12,635,684 13,183,335 Miscellaneous Revenue 20,267 26,946 32,000 38,000 Debt Proceeds - - - - Transfer In 420,000 420,000 840,000 840,000 Total Revenues $ 6,870,810 $ 6,425,168 $ 17,843,954 $ 19,358,607 Expenditures Salaries & Wages 3,657,773 4,234,220 9,180,627 10,887,092 Personnel Benefits 1,072,825 1,197,086 2,654,036 2,988,052 Supplies 312,104 219,299 537,095 667,918 Services & Charges 1,472,146 1,597,076 3,459,787 3,870,893 Transfers & Pass Through’s - - - 23,233 Capital Outlay 71,136 42,302 87,000 124,000 Debt Principal - - 1,340,000 - Debt Interest - 34,027 - - Budgeted End Fund Balance - - 585,409 797,419 Total Expenditures $ 6,585,984 $ 7,324,010 $ 17,843,954 $ 19,358,607 Ambulance Personnel Summary Number of Employees (FTE) Position 2017 2018 2019 2020 2021 2022 Fire Chief 0.5 0.5 0.5 0.5 0.5 0.5 Deputy Fire Chief 0.5 0.5 0.5 1 1 1 Battalion Chief 1.5 1.5 1.5 1.5 1.5 1.5 Captain/Medical Officer 1 1 1 1 1 1 Med/Training Officer Assistant 0 0 0 1 1 1 Community Risk Reduction Specialist 0.5 0.5 0.5 0.5 0.5 0.5 Captain-Paramedic 2 2 6 6 5 5 Lieutenant 1 1 3 3 3 3 Firefighter/Paramedic 29 30.5 21 21 21 21 Firefighter - 1.5 5 5 8 8 Department Assistant II 1 1 1 0 0 0 Administrative Assistant II 0.5 0.5 0.5 0.5 0.5 0.5 Lead Accountant 0 0 0 0.75 0.75 0.75 Total 37.5 40.5 40.5 41.75 43.75 43.75 2021 – Moved 2 FTEs to Ambulance Fund from General Fund to align allocation of position to operation. No change proposed from 2020 to 2021.   176  FIRE DEPARTMENT – AMBULANCE UTILITY MISSION Honorably protect and serve our community. MAJOR FUNCTIONS The Ambulance Service provides well-supervised, qualified and professional basic through advanced emergency life support services in accordance with National, State, and Local ordinance and industry standards. The Department provides medical safety training and education for its members in accordance with WAC 296-305 requirements. The Emergency Medical Services (EMS) Officer serves as the City of Pasco Infectious Disease Control Officer. The Ambulance Service provides pre-hospital training and safety education and outreach programs to the City residents and the greater Tri-Cities community. In addition, the Service provides advanced and basic life support EMS training, as defined by the Washington State Department of Health and Benton/Franklin Pre-Hospital protocols. Accomplishments and Goals are for Fire and Ambulance operations. 2019-2020 KEY ACCOMPLISHMENTS Completed design and construction for the relocation of Fire Station 83 to better serve the community inside the Urban Growth Area (CIP Project #18001) Completed design and began construction of Fire Station 84 and Fire Department Headquarters to replace temporary Fire Station 84 with a permanent station. (CIP Project #18002) Purchase of land for additional Fire Station 85 to meet the expanding needs of the community and provide continuous level of service in the Urban Growth Area. (CIP Project #19003) Purchase of land for Fire Station 87 in the King City industrial area in anticipation of continued industrial growth and a future Casino location. Identify/secure alternative programmatic funding streams to meet the expanding needs of the community. Promoted fiscal stewardship through the leveraging of regionalization of training center expenses with other fire agencies. Completed an updated strategic plan to establish short term goals for department. Implemented operation performance metric monitoring/reporting interactive application for real time analysis (NFORS). BUDGET NARRATIVE 2021-2022 GOALS Develop and implement a Washington Survey and Rating Bureau (WSRB) maintenance/improvement plan to maintain a Protection Class 3 in the 2023 Rerate. Design of Fire Station 85 to be located on Road 100.   177  Through an Assistance to Firefighters Grant acquire, train on and place in service new Self- Contained Breathing Apparatus (SCBA). Increase the availability and work of the Pasco Resource Navigator (PRN) program to aid “at risk” citizens relying on 911 services. Develop and implement a funding stream for inspections of High Hazard Occupancies that are using and/or storing Hazardous Materials as defined under Federal law (Tier 2 reports). Identify a location and secure land for Station 86 in the northwest area of the city. Develop and implement a Fire Impact Fee to assist in funding additional fire stations in developing areas of the city. Replace approximately 100 portable radios that have reached end of life. Equip and train a marine spill response program through Department of Ecology funding and partnership’s with industry. Review and implement programs/projects identified in updated strategic plan as available resources are identified and allocated based on priorities outlined in the plan. Through a Fire Protection and Safety Grant (FP&S) and working with the Pasco School District develop and track the effectiveness of Fire Safety Education on Elementary School age students. Work with City Clerk to maintain a consistent records management system.   178  Public Works – Streets CITY MANAGER PUBLIC WORKS DIRECTOR SUPERINTENDENT DIVISION MANAGER Public Works Lead Heavy Equipment Operator Utility Maintenance Worker Administrative Assistant I Instrument Technician   179  110 - Street 2017 Actual 2018 Actual 2019-2020 Budget 2021-2022 Budget Revenues Budgeted Beg Fund Balance - - 3,092 400,000 Taxes 247,073 252,755 510,297 - License & Permits 398,420 306,280 767,000 813,400 Intergovernmental 1,049,406 1,039,157 2,241,868 2,002,995 Charges Goods & Services 22,729 152,430 351,041 892,560 Miscellaneous Revenue 5,656 21,457 600 600 Transfer In 597,163 - 1,579,500 691,020 Total Revenues $ 2,320,447 $ 1,772,079 $ 5,453,398 $ 4,800,575 Expenditures 2017 Actual 2018 Actual 2019-2020 Budget 2021-2022 Budget Salaries & Wages 704,813 554,980 1,190,771 1,044,906 Personnel Benefits 310,626 252,518 533,066 484,268 Supplies 234,517 219,831 798,265 877,326 Services & Charges 1,245,778 1,002,297 2,699,161 2,488,951 Transfers & Pass Trough's - - - - Capital Outlay 15,286 - 81,955 - Budgeted End Fund Balance - - 150,180 (94,876) Total Expenditures $ 2,511,020 $ 2,029,626 $ 5,453,398 $ 4,800,575 City Streets Personnel Summary Number of Employees (FTE) Position 2017 2018 2019 2020 2021 2022 Public Works Director 0.11 0.11 0.11 0.11 0.11 0.11 Public Works Superintendent 0.15 0.15 0.06 0.06 0.06 0.06 Public Works Division Manager 0.5 0.5 0.5 0.25 0.25 0.25 Public Works Lead 1 1 1 1 1 1 Heavy Equipment Operator 5 5 4 4 3 3 Utility Maintenance Worker I 2 2 2 2 2 2 Instrumentation Tech 1 1 1 1 1 1 Administrative Assistant I 0.25 0.25 0.08 0.08 0.08 0.08 Total 10.01 10.01 8.75 8.5 7.5 7.5 2021 – Moved 1 FTE from Street Fund to Stormwater Utility Fund to align allocation of position to operation. No change proposed from 2020 to 2021.   180  Arterial Fund Arterial 2017 Actual 2018 Actual 2019-2020 Budget 2021-2022 Budget Revenues Budgeted Beg Fund Balance - - 1,564,733 1,089,000 Intergovernmental 513,304 519,492 1,077,694 959,294 Charges Goods & Services 2,368 709 10,000 10,000 Miscellaneous Revenue 11,933 16,209 10,000 14,000 Debt Proceeds - - - - Transfer In - - - - Total Revenues $ 527,605 $ 536,410 $ 2,662,427 $ 2,072,294 Expenditures Supplies - - - - Services & Charges - 8,623 7,636 18,968 Transfers & Pass Through’s 278,640 784,502 1,990,700 596,002 Capital Outlay - - - - Budgeted End Fund Balance - - 664,091 1,457,324 Total Expenditures $ 278,640 $ 793,125 $ 2,662,427 $ 2,072,294 Non-recurring Capital Expenditures – $420K of capital expenditure from the Arterial Fund will be expended to continue the Argent Road Improvement project to enhance the safety and capacity for motor vehicles, pedestrians, bicyclists, and other non-vehicular access. This project will be funded by several grants and internal funds. Additionally, $100K is allocated to the Pedestrian/Bicycle Access Sylvester Street Overpass project to enhance pedestrian and bike connectivity throughout the City. Other projects funded by this fund include Sylvester Street Safety Program to improve safety along the Sylvester Street corridor   181  I-182 Impact Fund 125 - I-182 Impact 2017 Actual 2018 Actual 2019-2020 Budget 2021-2022 Budget Revenues Budgeted Beg Fund Balance - - 1,062,380 2,634,000 Charges Goods & Services 312,141 407,362 500,000 869,000 Miscellaneous Revenue 12,771 14,525 10,000 10,000 Transfer In - - - - Total Revenues $ 324,912 $ 421,887 $ 1,572,380 $ 3,513,000 Expenditures Services & Charges - 1,391 12,584 - Transfers & Pass Through’s 459,223 237,695 158,000 605,000 Budgeted End Fund Balance - - 1,401,796 2,908,000 Total Expenditures $ 459,223 $ 239,086 $ 1,572,380 $ 3,513,000 Non-recurring Capital Expenditures – Over $530K is allocated to the Citywide Traffic Signal Improvement Phase II project, increasing system reliability, traffic efficiency, and pedestrian and vehicular safety throughout the City through traffic signal controllers. Additionally, $75K is allocated Court Street & Road 68 Intersection to improve the most heavily trafficked intersection of the City. Capital expenditures discussed above are not expected to generate additional operational expense.   182  Street Overlay Fund Street Overlay 2017 Actual 2018 Actual 2019-2020 Budget 2021-2022 Budget Revenues Budgeted Beg Fund Balance - - 4,327,688 3,615,000 Taxes 990,173 1,013,264 2,046,461 2,057,588 Miscellaneous Revenue 39,423 55,855 70,000 70,000 Transfer In - - - 2,068,472 Total Revenues $ 1,029,596 $ 1,069,119 $ 6,444,149 $ 7,811,060 Expenditures Supplies - - - - Services & Charges 112,597 64,681 101,913 58,422 Transfers & Pass Through’s 35,447 202,921 4,060,000 5,723,000 Budgeted End Fund Balance - - 2,282,236 2,029,638 Total Expenditures $ 148,044 $ 267,602 $ 6,444,149 $ 7,811,060 Non-recurring Capital Expenditures – The Street Overlay Fund will contribute $3.0M of funds to continue the Lewis Street Overpass project – one of Council’s long-standing goal to complete. $958K will be funded to Sandifur Parkway Widening – Road 52 to Road 60 project, extending City’s transportation network to Broadmoor area considered to be the next business center for the City. The remaining fund will go to various Pavement Preservation and overlay work which is considered to be recurring for the City. Capital expenditures discussed above are not expected to generate additional operational expense. No staffing in Arterial, I-182 Impact and Street Overlay Funds. These funds are pass through funds.   183      184  Community Development Block Grant CITY MANAGER COMMUNITY & ECONOMIC DEVELOPMENT DIRECTOR Block Grant Administrator Administrative Assistant II   185  Community Development Block Grant (CDBG) 2017 Actual 2018 Actual 2019-2020 Budget 2021-2022 Budget Revenues Budgeted Beg Fund Balance - - - - Intergovernmental 457,672 765,669 1,438,978 2,426,806 Miscellaneous Revenue 16,029 - 24,346 - Debt Proceeds - - - - Transfer In - - - - Total Revenues $ 473,701 $ 765,669 $ 1,463,324 $ 2,426,806 Expenditures Salaries & Wages 78,722 76,616 158,284 168,656 Personnel Benefits 31,136 30,449 62,867 65,094 Supplies 2,756 600 2,400 2,400 Services & Charges 149,572 151,722 627,273 434,070 Transfers & Pass Trough's 272,446 481,520 612,500 616,000 Debt Principal - - - - Budgeted End Fund Balance - - - 1,140,586 Total Expenditures $ 534,632 $ 740,907 $ 1,463,324 $ 2,426,806 HOME Investment Partnership Program (HOME) 2017 Actual 2018 Actual 2019-2020 Budget 2021-2022 Budget Revenues Budgeted Beg Fund Balance - - - - Intergovernmental 162,924 74,588 238,400 238,400 Transfer In - - - - Total Revenues $ 162,924 $ 74,588 $ 238,400 $ 238,400 Expenditures Salaries & Wages 2,683 2,160 - - Personnel Benefits 1,194 913 - - Supplies 182 74 - - Services & Charges 158,501 71,360 238,400 238,400 Budgeted End Fund Balance - - - - Total Expenditures $ 162,560 $ 74,507 $ 238,400 $ 238,400   186  Neighborhood Stabilization Program (NSP) 2017 Actual 2018 Actual 2019-2020 Budget 2021-2022 Budget Revenues Budgeted Beg Fund Balance - - - - Miscellaneous Revenue 20,000 10,000 104,700 104,700 Total Revenues $ 20,000 $ 10,000 $ 104,700 $ 104,700 Expenditures Salaries & Wages 739 1,262 - - Personnel Benefits 326 493 - - Supplies - 336 - - Services & Charges 9,284 102 104,700 104,700 Capital Outlay - - - - Budgeted End Fund Balance - - - - Total Expenditures $ 10,349 $ 2,193 $ 104,700 $ 104,700 Community Development Block Grant Personnel Summary Number of Employees (FTE) Position 2016 2017 2018 2019 2020 2021 2022 Block Grant Administrator 1 1 1 1 1 1 1 Total 1 1 1 1 1 1 1 No change proposed from 2020 to 2021.   187    188  Economic Development Fund CITY MANAGER COMMUNITY & ECONOMIC DEVELOPMENT DIRECTOR Deputy Economic Development Director Administrative Assistant II   189  Economic Development 2017 Actual 2018 Actual 2019-2020 Budget 2021-2022 Budget Revenues Budgeted Beg Fund Balance - - 1,478,322 1,172,000 Intergovernmental 354,375 392,639 740,000 800,000 Miscellaneous Revenue 1,020,481 821,126 2,003,200 1,887,620 Debt Proceeds - - - - Capital Asset Sale 66,693 - - - Transfer In - 56,004 - - Total Revenues $ 1,441,549 $ 1,269,769 $ 4,221,522 $ 3,859,620 Expenditures Salaries & Wages 57,420 116,711 245,627 248,882 Personnel Benefits 25,197 47,055 90,318 89,175 Supplies 150,891 51,712 138,145 183,782 Services & Charges 800,492 878,710 962,997 669,579 Transfers & Pass Through’s 265,621 - 375,000 - Capital Outlay 18,597 - 261,000 25,000 Debt Principal 475,938 - - - Debt Interest 9,519 - - - Ending Fund Balance - - 2,148,435 2,643,202 Total Expenditures $ 1,803,675 $ 1,094,188 $ 4,221,522 $ 3,859,620 Economic Development Personnel Summary Number of Employees (FTE) Position 2016 2017 2018 2019 2020 2021 2022 Deputy C&ED Director 0 1 1 1 1 1 1 Total 0 1 1 1 1 1 1 No change proposed from 2020 to 2021.   190  Martin Luther King Center Fund CITY MANAGER ADMINISTRATIVE & COMMUNITY SERVICES DIRECTOR RECREATION SERVICES MANAGER Recreation Specialist   191  Martin Luther King Center 2017 Actual 2018 Actual 2019-2020 Budget 2021-2022 Budget Revenues Budgeted Beg Fund Balance - - 136,139 89,815 Charges Goods & Services 2,865 - - - Miscellaneous Revenue 44,892 49,159 96,216 94,702 Transfer In 120,000 67,287 140,000 140,000 Total Revenues $ 167,757 $ 116,446 $ 372,355 $ 324,517 Expenditures Salaries & Wages 35,121 32,366 73,020 76,392 Personnel Benefits 14,405 12,960 30,630 28,825 Supplies 1,668 5,599 8,660 8,660 Services & Charges 58,809 80,224 171,618 167,543 Budgeted End Fund Balance - - 88,427 43,097 Total Expenditures $ 110,003 $ 131,149 $ 372,355 $ 324,517 Martin Luther King (MLK) Center Personnel Summary Number of Employees (FTE) Position 2016 2017 2018 2019 2020 2021 2022 Recreation Specialist 1 1 1 0.45 0.45 0.45 0.45 Total 1 1 1 0.45 0.45 0.45 0.45 No change proposed from 2020 to 2021.   192  Cemetery Fund CITY MANAGER ADMINISTRATIVE & COMMUNITY SERVICES DIRECTOR FACILITIES MANAGER Customer Service Representative Groundsman I Seasonal Employee   193  160 - Cemetery 2017 Actual 2018 Actual 2019-2020 Budget 2021-2022 Budget Revenues Budgeted Beg Fund Balance - - 40,011 147,172 Charges Goods & Services 214,595 295,834 514,800 544,000 Miscellaneous Revenue 3,280 1,635 3,400 3,200 Transfer In - - - - Total Revenues $ 217,875 $ 297,469 $ 558,211 $ 694,372 Expenditures Salaries & Wages 89,297 86,966 207,294 169,895 Personnel Benefits 32,401 31,157 64,986 54,223 Supplies 53,864 82,811 128,720 49,620 Services & Charges 69,033 69,472 148,096 350,926 Capital Outlay - 5,678 - - Debt Interest - - - - Ending Fund Balance - - 9,115 69,708 Total Expenditures $ 244,595 $ 276,084 $ 558,211 $ 694,372 Cemetery Personnel Summary Number of Employees (FTE) Position 2016 2017 2018 2019 2020 2021 2022 Groundsman I 0.5 0.5 0.5 0.5 0 0 0 Groundsman III 0 0 0 0 0.5 0.5 0.5 Customer Service Representative 1 1 1 1 1 1 1 Total 1.5 1.5 1.5 1.5 1.5 1.5 1.5 2020 – Reorganization of wage scale and department resulted in Groundsman I being replaced by Groundsman III position. 2021 - No change proposed from 2020 to 2021.   194  Senior Services CITY MANAGER ADMINISTRATIVE & COMMUNITY SERVICES DIRECTOR RECREATION SERVICES MANAGER RECREATION SPECIALIST Registered Nurse Administrative Assistant I   195  Senior Center 2017 Actual 2018 Actual 2019-2020 Budget 2021-2022 Budget Revenues Budgeted Beg Fund Balance - - 16,926 77,790 Intergovernmental 15,370 14,973 35,000 31,250 Charges Goods & Services 15,671 14,166 30,200 21,040 Miscellaneous Revenue 15,282 16,009 43,400 28,260 Transfer In 231,000 281,640 484,116 468,232 Total Revenues $ 277,323 $ 326,788 $ 609,642 $ 626,572 Expenditures Salaries & Wages 149,488 146,608 244,149 259,855 Personnel Benefits 58,959 57,065 97,077 89,805 Supplies 6,941 2,861 14,200 12,100 Services & Charges 74,443 101,619 235,069 142,841 Ending Fund Balance - - 19,147 121,971 Total Expenditures $ 289,831 $ 308,153 $ 609,642 $ 626,572 Senior Center Personnel Summary Number of Employees (FTE) Position 2016 2017 2018 2019 2020 2021 2022 Recreation Specialist 1 1 1 0.5 0.5 0.5 0.5 Administrative Assistant I 1 1 1 1 1 1 1 Total 2 2 2 1.5 1.5 1.5 1.5 2021 - No change proposed from 2020 to 2021.   196  Boulevard Maintenance Fund Blvd Maintenance 2017 Actual 2018 Actual 2019-2020 Budget 2021-2022 Budget Revenues Budgeted Beg Fund Balance - - 2,311,220 2,229,268 Charges Goods & Services 157,750 167,825 270,000 301,000 Miscellaneous Revenue 38,368 41,477 36,263 41,451 Debt Proceeds 243,387 237,159 57,000 64,291 Total Revenues $ 439,505 $ 446,461 $ 2,674,483 $ 2,636,010 Expenditures Supplies - - - - Services & Charges - 4,228 18,364 23,426 Transfers & Pass Through's 170,000 137,600 275,200 290,000 Debt Principal - - - - Ending Fund Balance - - 2,380,919 2,322,584 Total Expenditures $ 170,000 $ 141,828 $ 2,674,483 $ 2,636,010 No staffing in the aforementioned fund. This fund provides subsidy to General Fund to fund for operations related to maintenance of boulevards across the City.   197  Athletics Fund Athletics 2017 Actual 2018 Actual 2019-2020 Budget 2021-2022 Budget Revenues Budgeted Beg Fund Balance - - 234,778 205,620 Charges Goods & Services 122,678 151,728 314,595 341,460 Miscellaneous Revenue 4,088 2,546 10,000 7,800 Transfer In - - - - Total Revenues $ 126,766 $ 154,274 $ 559,373 $ 554,880 Expenditures Salaries & Wages 14,132 11,077 40,522 41,272 Personnel Benefits 3,642 2,665 11,512 3,080 Supplies 27,111 43,484 86,040 87,000 Services & Charges 62,933 66,357 270,508 199,095 Ending Fund Balance - - 150,791 224,433 Total Expenditures $ 107,818 $ 123,583 $ 559,373 $ 554,880   198  Golf Fund Golf 2017 Actual 2018 Actual 2019-2020 Budget 2021-2022 Budget Revenues Budgeted Beg Fund Balance - - 27,000 (102,143) Charges Goods & Services 1,325,669 1,712,875 3,157,000 2,947,000 Miscellaneous Revenue 283,639 316,157 561,000 561,000 Debt Proceeds - - - - Transfer In - - - - Total Revenues $ 1,609,308 $ 2,029,032 $ 3,745,000 $ 3,405,857 Expenditures Supplies - 1,090 4,000 4,000 Services & Charges 1,769,789 1,925,606 3,588,382 3,656,186 Debt Principal - - - - Ending Fund Balance - - 152,618 (254,329) Total Expenditures $ 1,769,789 $ 1,926,696 $ 3,745,000 $ 3,405,857 End Fund Balance – Anticipating continuing negative impacts of COVID-19 on Golf fund. The fund is expected to begin 2021-2022 biennium with negative fund balance unless Council approves subsidy during the 2020 Supplement. It is advisable to review the fund finance during 2021’s biennium adjustment as better economic information will be available then. No staffing in the aforementioned fund. City contracts with CourseCo, a golf course management company to operate the Sun Willows Course on City’s behalf.   199  Multi-Modal Fund Multi Modal 2017 Actual 2018 Actual 2019-2020 Budget 2021-2022 Budget Revenues Budgeted Beg Fund Balance - - 341,661 273,148 Intergovernmental 74,191 100,867 204,139 205,170 Miscellaneous Revenue 86,585 81,763 178,113 174,070 Transfer In - - - - Total Revenues $ 160,776 $ 182,630 $ 723,913 $ 652,388 Expenditures Supplies 3,150 5,095 20,000 20,000 Services & Charges 40,326 168,533 115,573 176,013 Transfers & Pass Through's - - 300,000 175,000 Ending Fund Balance - - 288,340 281,375 Total Expenditures $ 43,476 $ 173,628 $ 723,913 $ 652,388 Non-recurring Expenditures – Transfer out to support transportation related activities throughout the City. No staffing in the aforementioned fund.   200  School Impact Fund School Impact 2017 Actual 2018 Actual 2019-2020 Budget 2021-2022 Budget Revenues Budgeted Beg Fund Balance - - - 214,663 Charges Goods & Services 2,325,575 2,355,675 5,000,000 5,000,000 Miscellaneous Revenue 1,367 - - - Total Revenues $ 2,326,942 $ 2,355,675 $ 5,000,000 $ 5,214,663 Expenditures Services & Charges 2,333,355 2,355,365 5,000,000 4,986,000 Transfers & Pass Through’s - - - - Ending Fund Balance - - - 228,663 Total Expenditures $ 2,333,355 $ 2,355,365 $ 5,000,000 $ 5,214,663 No staffing in the aforementioned fund.   201  Marina Fund Marina 2017 Actual 2018 Actual 2019-2020 Budget 2021-2022 Budget Revenues Budgeted Beg Fund Balance - - 82,484 (34,877) Miscellaneous Revenue 19,184 369,222 39,200 54,202 Debt Proceeds - - - - Transfer In - - - - Total Revenues $ 19,184 $ 369,222 $ 121,684 $ 19,325 Expenditures Salaries & Wages - - - - Personnel Benefits - - - - Supplies - 129 - - Services & Charges 10,471 14,462 27,132 40,112 Transfers & Pass Through’s - - - 200,000 Capital Outlay - 737,123 - - Ending Fund Balance - - 94,552 (220,787) Total Expenditures $ 10,471 $ 751,714 $ 121,684 $ 19,325 Non-recurring Expenditures – $200K is being transferred out to fund replacement of Marina Dock damaged during a snowstorm. Revenue to offset this cost is expected to be received via insurance coverage, however, this revenue will not be included in the budget till the amount is secured. End Fund Balance – See non-recurring expenditures. No staffing in the aforementioned fund. City contracts with Columbia Marine, a property management company to operate the Schlagel Park Marina on City’s behalf.   202  Lodging Fund Lodging 2017 Actual 2018 Actual 2019-2020 Budget 2021-2022 Budget Revenues Budgeted Beg Fund Balance - - - - Taxes 327,947 - - - Charges Goods & Services - 333,344 650,000 475,000 Miscellaneous Revenue 430 463 500 - Total Revenues $ 328,377 $ 333,807 $ 650,500 $ 475,000 Expenditures Services & Charges 328,241 333,794 650,500 475,000 Ending Fund Balance - - - - Total Expenditures $ 328,241 $ 333,794 $ 650,500 $ 475,000 No staffing in the aforementioned fund. Litter Abatement Fund Litter Abatement 2017 Actual 2018 Actual 2019-2020 Budget 2021-2022 Budget Revenues Budgeted Beg Fund Balance - - 19,618 31,003 Charges Goods & Services 12,500 9,687 25,000 25,000 Miscellaneous Revenue 116 198 100 400 Transfer In 5,000 5,000 10,000 10,000 Total Revenues $ 17,616 $ 14,885 $ 54,718 $ 66,403 Expenditures Services & Charges 8,705 10,237 30,238 30,974 Ending Fund Balance - - 24,480 35,429 Total Expenditures $ 8,705 $ 10,237 $ 54,718 $ 66,403 No staffing in the aforementioned fund.   203  Revolving Abatement Fund 190 - Revolve Abate 2017 Actual 2018 Actual 2019-2020 Budget 2021-2022 Budget Revenues Budgeted Beg Fund Balance - - 328,473 430,903 Charges Goods & Services 79,278 77,650 100,000 98,000 Fines & Penalties 171,813 128,496 261,000 280,000 Miscellaneous Revenue 10,523 5,114 11,000 41,000 Total Revenues $ 261,614 $ 211,260 $ 700,473 $ 849,903 Expenditures Supplies - - - - Services & Charges 296,240 215,857 550,318 830,300 Transfers & Pass Trough's - - - - Budgeted End Fund Balance - - 150,155 19,603 Total Expenditures $ 296,240 $ 215,857 $ 700,473 $ 849,903 End Fund Balance – Increased activity is expected; however, this fund is highly volatile in its revenues and expenses as its related to fines and eventual abatement cost for properties. Revenue is received when the properties are sold off, decreasing the predictability of the revenue and expenses. No staffing in the aforementioned fund.   204  TRAC Fund TRAC (HAPO Center) 2017 Actual 2018 Actual 2019-2020 Budget 2021-2022 Budget Revenues Budgeted Beg Fund Balance - - 465,228 634,471 Taxes 325,587 342,052 - 2 Miscellaneous Revenue 1,192 2,857 6,000 6,000 Transfer In - - 550,000 500,000 Total Revenues $ 326,779 $ 344,909 $ 1,021,228 $ 1,140,473 Expenditures Services & Charges 122,003 239,054 553,344 554,022 Debt Principal - - - - Debt Interest - - - - Ending Fund Balance - - 467,884 586,451 Total Expenditures $ 122,003 $ 239,054 $ 1,021,228 $ 1,140,473 No staffing in the aforementioned fund. City partners with the Franklin County to operate the facility.   205  Park Development Fund Park Development 2017 Actual 2018 Actual 2019-2020 Budget 2021-2022 Budget Revenues Budgeted Beg Fund Balance - - 2,196,028 647,187 Charges Goods & Services 465,088 519,304 1,008,200 1,633,400 Miscellaneous Revenue 30,369 26,660 20,000 40,000 Transfer In - - - - Total Revenues $ 495,457 $ 545,964 $ 3,224,228 $ 2,320,587 Expenditures Services & Charges - 3,247 61,336 36,584 Transfers & Pass Through’s 924,619 46,457 1,380,000 345,000 Ending Fund Balance - - 1,782,892 1,939,003 Total Expenditures $ 924,619 $ 49,704 $ 3,224,228 $ 2,320,587 Non-recurring Capital Expenditures – The Park Development Fund is planning to build several parks Road 84 park for $270K. $75K will be used to develop and expand Highland Park parking and fields. The capital expenditures discussed above are expected to increase operational expense in the future by about $10K each year collectively for all projects. No staffing in the aforementioned fund.   206  Capital Improvement (REET) Fund Capital Improvement (REET) 2017 Actual 2018 Actual 2019-2020 Budget 2021-2022 Budget Revenues Budgeted Beg Fund Balance - - 7,042,960 9,850,000 Taxes 2,235,264 2,343,930 3,510,000 4,400,000 Miscellaneous Revenue 80,411 112,251 150,000 140,000 Transfer In - - - - Total Revenues $ 2,315,675 $ 2,456,181 $ 10,702,960 $ 14,390,000 Expenditures Services & Charges - 7,260 38,983 81,735 Transfers & Pass Through’s 1,422,673 575,702 8,189,544 1,961,000 Capital Outlay - - - - Ending Fund Balance - - 2,474,433 12,347,265 Total Expenditures $ 1,422,673 $ 582,962 $ 10,702,960 $ 14,390,000 Non-recurring Capital Expenditures – The Capital Improvement Fund receives its revenue from Real Estate Excise Tax and is earmarked for large capital projects. Almost $2.0M authorized for this biennium will be allocated to projects important to the community. Projects like Sacajewa Levee Lowering (830K), Burns Road Pedestrian/Bicycle Pathway (263K), North Road 100 Pedestrian/Bicycle Improvements (350K), Sylvester Street Safety Program (95K) are focused to improve the connectivity of the City for pedestrians, cyclists, and drivers. Additionally, 368K is allocated to City’s highest priority to improve Lewis Street Overpass and corridor. No staffing in the aforementioned fund.   207  Stadium/Convention Center Fund Stadium/Convention Center 2017 Actual 2018 Actual 2019-2020 Budget 2021-2022 Budget Revenues Budgeted Beg Fund Balance - - 445,254 892,492 Taxes 325,588 342,078 - - Miscellaneous Revenue 30,524 42,720 68,600 67,000 Debt Proceeds - - 2,000,000 - Transfer In - - 320,000 255,500 Total Revenues 356,112 384,798 2,833,854 1,214,992 Expenditures Services & Charges 175,210 193,528 51,222 373,844 Transfers & Pass Through’s - - 2,000,000 - Capital Outlay - 24,693 - - Debt Principal 119,886 123,483 163,200 100,000 Debt Interest 7,302 3,705 156,800 155,500 Ending Fund Balance - - 462,632 585,648 Total Expenditures $ 302,398 $ 345,409 $ 2,833,854 $ 1,214,992 No staffing in the aforementioned fund.   208  Hotel/Motel Excise Tax Fund 196 - Hotel/Motel Excise Tax 2017 Actual 2018 Actual 2019-2020 Budget 2021-2022 Budget Revenues Budgeted Beg Fund Balance - - - 6,951 Taxes - - 1,251,000 757,000 Miscellaneous Revenue - - - 60 Total Revenues $ - $ - $ 1,251,000 $ 764,011 Expenditures Services & Charges - - 342,244 425,200 Transfers & Pass Through’s - - 870,000 755,500 Ending Fund Balance - - 38,756 (416,689) Total Expenditures $ - $ - $ 1,251,000 $ 764,011 End Fund Balance – Due to uncertainty around recovery of Tourism industry during and post COVID-19 pandemic and the fact that the Council authorizes expenses for this fund as recommended by Lodging Tax Advisory Committee (LTAC) outside of the budgeting process, the expenses are budgeted at levels that have been historically recommended by LTAC, however, revenues are budgeted at levels that we are projecting the City will receive for this purpose. Any adjustments, to revenue or expense, can be made during the LTAC application and grant process during the third quarter of 2021 when better information is available. No staffing in the aforementioned fund.   209  ENTERPRISE FUND   210  Public Works - Utilities CITY MANAGER PUBLIC WORKS DIRECTOR PUBLIC WORKS SUPERINTENDENT PW DIVISION MANAGER WATER DISTRIBUTION Foreman Heavy Equipment Operator Utility Maintenance Worker CROSS CONNECTION Cross Connection Specialist Utility Maintenance Worker PWRF/ IRRIGATION Foreman Pump Mechanic Heavy Equipment Operator Utility Maintenance Worker PW DIVISION MANAGER WATER TREATMENT PLANT Chief Plant Operator Pump Mechanic Plant Operator Utility Maintenance Worker WASTEWATER TREATMENT PLANT Chief Plant Operator Plant Operator Utility Maintenance Worker Lab Technician PW DIVISION MANAGER STORMWATER Operator/Mechanic Heavy Equipment Operator Utility Maintenance Worker SEWER COLLECTION Collections Lead Worker Heavy Equipment Operator Utility Maintenance Worker Administrative Assistant I Instrument Technician Environmental Coordinator Pretreatment Technician ADMINISTRATIVE ASSISTANT II   211  All Utilities 2017 Actual 2018 Actual 2019-2020 Budget 2021-2022 Budget Revenues Budgeted Beg Fund Balance - - 22,737,575 22,235,773 Licenses & Permits 185,593 195,800 416,396 527,878 Intergovernmental 6,074,201 1,047,883 1,411,000 4,025,002 Charges for Service 25,628,338 27,975,857 57,583,906 63,818,213 Finds & Forfeitures - - - - Miscellaneous 285,358 607,302 32,209,789 66,162,454 Other Financing Source 1,827,575 2,139,307 3,610,200 4,949,440 Debt Service Proceeds 9,998,509 2,237,344 1,117,500 1,500,000 Transfers in 65,000 - - - Total Revenues $ 44,064,574 $ 34,203,493 $ 119,086,366 $ 163,218,760 Expenditures Salaries 3,461,415 3,336,850 8,618,199 9,082,793 Personnel Benefits 1,636,421 904,627 3,838,935 4,197,041 Supplies 1,918,032 2,155,298 4,778,886 4,625,813 Other Service Charges 9,923,546 10,751,463 24,755,201 27,714,937 Transfer Out - - - 141,767 Capital Outlay 10,205,709 5,560,660 42,454,700 87,016,511 Debt Services Principal 3,281,308 3,421,977 7,683,040 5,764,524 Debt Services Interest 1,629,123 1,785,247 3,728,617 4,103,698 Ending Fund Balance - - 23,228,788 20,571,676 Total Expenditures $ 32,055,554 $ 27,916,122 $ 119,086,366 $ 163,218,760   212  Non-recurring Capital Expenditure – Over $84.9M is budgeted to provide Water, Sewer, Irrigation, Stormwater, and Process Water Reuse services. The major capital investments are related to improvement of existing facility like PWRF Primary Treatment ($26.6M), Wastewater Treatment Plant (WWTP) Improvement Phase I& II ($22.4M), Reservoir Storage Tank (6.5M), and Butterfield Water Treatment Plant (WTP) Improvements (5.0M). The City is planning for large scale improvements to its water, sewer, and Process Water Reuse facility (PWRF). Operational cost is expected to increase due to the expansion of capacity, however, exact increases are not known yet as design process for many of these improvement are ongoing. Sewer 31,969 WasteWater Treatment Plant (WWTP) Improvements - Phase 1 19,660 Northwest Area Trunkline - Sandifur Parkway Extension to Desiree Street 3,681 Northwest Area Lift Station 3,250 WasteWater Treatment Plant (WWTP) Improvements - Phase 2 2,700 Court and Sylvester Sewer Main Improvement 1,500 Road 52 and Pearl Street Lift Station - Riverview 300 Southeast Industrial Trunkline 200 Annual Sewer Upsize - Development 200 Annual Sewer System Improvements - Development 200 Pearl Street Lift Station 144 Road 36 Lift Station Upgrades 134 Process Water Reuse facility (PWRF) 31,745 Process Water Reuse Facility (PWRF) Primary Treatment Improvement 26,641 Columbia East Lift Station & Force Main 5,104 Water 19,749 Reservoir Storage Tank 6,450 Butterfield Water Treatment Plant (WTP) Improvements 5,000 Transmission Main - West Pasco Water Treatment Plant (WPWTP) to Zone 3 2,500 Automated Meter Reading 1,750 West Pasco Water Treatment Plant (WPWTP) Improvements 1,475 Emergency Power Improvements 1,100 Water Main Replacement - Richardson Road (Road 92 to Road 96) 460 Water Main Replacement - Star Lane (Road 100 to Road 97) 235 Annual Water System Improvements - Development 200 Annual Water Upsize - Development 200 Water Main Extension - Alton Street (Wehe Avenue to the alley west of Owen Street) 187 Water Main Extension - Road 103 (Maple Street to Willow Way) 113 Water Main Replacement - South 18th Avenue (Court Street to WA Avenue) 79 Stormwater 779 Sylvester Pipe Relining 330 1st Avenue Pipe Rehab 249 Annual Stormwater Improvements - Development 200   213  Irrigation 620 Well Capacity Upgrades 470 Annual Irrigation Upsize - Development 100 Annual Irrigation System Improvements - Development 50 Grand Total 84,862 Water/Sewer Utilities Personnel Summary Number of Employees (FTE) Position 2016 2017 2018 2019 2020 2021 2022 Public Works Director 0.63 0.63 0.63 0.63 0.63 0.63 0.63 Public Works Superintendent 0.6 0.6 0.7 0.7 0.7 0.7 0.7 Public Works Division Manager 3.17 3.17 3.17 2.5 2.75 2.75 2.75 Finance Director 0 0 0.1 0.1 0.1 0.1 0.1 Chief Plant Operator 2 2 2 2 2 2 2 Public Works Lead 3 3 3 3 4 4 4 Water Plant Operator 0 0 0 0 4 4 4 Wastewater Plant Operator 0 0 0 0 6 6 6 Instrumentation Tech 1 1 1 1 1 2 2 Lab Technician 1 1 1 1 1 1 1 Water/Wastewater Plant Operator 11 10 9 9 0 0 0 Maintenance Worker/Mechanic 3.36 4.36 4.36 5 7 7 7 Cross Connect Specialist 2 2 1 1 0 0 0 Heavy Equipment Operator 16 16 16 17 17 18 18 Senior Management Analyst 0 1 1 1 0 0 0 Utility Maintenance Worker 12 12 12 12 9 9 9 Engineering Tech I 1 1 2 2 2 2 2 Administrative Assistant II 0.5 0.5 0.5 0.5 0.5 0.5 0.5 Administrative Assistant I 0.49 0.49 1.39 1.68 1.68 1.68 1.68 Environmental Compliance Officer 0 0 1 1 1 1 1 Public Works Project Coordinator 0 0 0 0 1 1 1 Total 57.75 58.75 59.85 61.11 61.36 63.36 63.36 2020 – Reallocation of 0.25 FTE between the Street Fund to the Utilities Fund to reflect operations. 2021 – Reallocation of 1.0 FTE between the Street Fund to the Utilities Fund to reflect operations. 2021 – Proposed addition of 1 FTE.   214  PUBLIC WORKS – OPERATIONS DIVISION MISSION To provide sustainable and responsive operations and maintenance of the City’s Streets and utilities through thoughtful and deliberate execution of municipal services in support of public needs and Council goals and objectives. MAJOR FUNCTIONS Public Works Operations (Operations) provides reliable and cost-effective maintenance for the City’s water, sewer, irrigation, stormwater, and process water reuse facility utilities, and also maintains the City Streets and traffic signal systems. Operations also provides, as an internal service provider, regular and routine maintenance of City-owned vehicles and equipment. 2019-2020 KEY ACCOMPLISHMENTS 2020 provided Operations’ staff and management the opportunity to test the operation’s pliability and ability to overcome challenges. Staff and management entered 2020 with maintenance plans consistent with previous years and the added expectation to train inexperienced staff, plan for major improvements at our water, municipal wastewater, and industrial wastewater plants, and develop/execute a robust pavement preservation/Street overlay program. Conditions quickly changed, due to COVID-19, forcing the operation to reprioritize maintenance plans based on unpredictable staffing levels and other unfamiliar limitations. Operations staff are resilient, industrious, and as demonstrated by the levels of maintenance completed in 2020, unwavering in their commitment to provide our community with the highest levels of municipal services, regardless of conditions. WATER  Treated and supplied over 5 billion gallons of drinking water – 5% increase over 2019.  Rebuilt five pumps/motors; rehabilitated two underdrain filters; replaced one variable frequency drive, and; completed work on new raw water intake.  Installed 509 new water meters and 18 new service connections; repaired 34 water service connections, four water main repairs, and repaired or replaced five water valves; performed preventative maintenance on 552 hydrants; repainted 142 hydrant, and; repaired and/or replaced 20 fire hydrants.  Used approx. 20 tons of asphalt to repair water-system-related Street repairs. SEWER  Treated 1.9 billion gallons of wastewater – 5% increase over 2019.  Awarded 2019 NPDES recognition for 6th straight year of violation free discharge.  Replaced aeration diffuser systems in both basins, including 1,672 aeration diffuser membranes; cleaned and replaced valves in digester # 4 and in primary clarifier, and;   215  upgraded arc flash protection for the UV system (the final treatment prior to discharging to the river).  Newly rebuilt Pearl Street lift station put into service; replaced and/or rebuilt motors/pumps at Maitland, 9th & Washington, and Leukel lift stations.  Visually inspected (via CCTV) 123,200 linear feet of sewer lines and cleaned and/or removed roots from 108,000 linear feet. IRRIGATION  Distributed over 3 billion gallons of non-potable irrigation water – 2.2% increase over 2019 including 99% system reliability.  Rehabilitated wells at three separate well locations; replaced/rebuilt two pumps/motors; installed three new mainline valves; repaired eight service connections and two main leaks. STORMWATER  Swept 743 tons of material from City Streets.  Cleaned over 420 catch basins. PROCESS WATER REUSE FACILITY (PWRF) & FARM OPERATIONS  Discharged nearly 700 million gallons of industrial wastewater onto City-owned farm fields.  Coordinated on several capital projects, including: Foster Wells Force Main; 30,000 square-foot drying beds, and new industrial pump station.  Repaired force main leak under Hwy 395; repaired nine other force main leaks, replaced 30 pivot gearboxes, 10 pivot tires, and 10 pivot center-drive units.  To improve water availability, staff connected/looped wells #1, #2, #3, #6, and #9, and also connected/looped wells #7 & #8. STREETS  Crack sealed 238,000 linear feet of City Streets, applying 67,000 lbs. of material.  Applied 44,000 lbs. of thermoplastic, covering 81,000 linear feet.  Restriped 110,000 linear feet using 306 gallons of paint.  Replaced and/or repaired 155 Street signs. EQUIPMENT RENTAL/FLEET  Completed 1,373 service requests.  Implemented bulk Diesel Exhaust Fluid (DEF) dispense unit; saving the expense of individual 2.5-gallon containers. Each 55-gallon drum saves the City $85.00. In addition, to minimize return trips to the shop, Fleet staff now routinely fill DEF tanks on all units as they come in for service.  Ongoing efforts to clean, organize and reduce Fleet parts inventory has resulted in cleaner, more organized staging areas. Staff worked to isolate parts held for vehicles and equipment we no longer have and purge these items, as well as left over “good used parts” we no longer consider usable in an evolving fleet.   216   Finalized and implemented the Fire/Ambulance fleet tracking system for annual inspections, aerial device maintenance services, fire pump inspection/testing, snow tire assignments, battery replacement intervals and heat-pan removal/re-installation dates.  Processed the sale of 6,990 gallons of fuel. ADMINISTRATIVE  Implemented central purchasing internal processes and procedures.  Initiated and completed nine small-works contracts.  Developed internal automated task tracking mechanism.  Responded to the following volume of customer calls: o Water: 502 o Sewer: 42 o Irrigation: 322 o Streets/traffic: 113 o Stormwater: 21 BUDGET NARRATIVE 2021-2022 GOALS WATER  Continue efforts to complete an additional 22% of the Unidirectional Flushing.  Train and deploy staff for the ongoing maintenance of city fire hydrants to help mitigate future failures and supporting Fire Rating.  Continue analysis and installation of electronic read meters. (CIP Project #18050)  Continue working with the Department of Health on their water plants optimization program.  Meet Uni-Directional Flushing goal of at least 22% of zones to meet 5-year cycle – this ensures compliance with the Fire Rating program.  Continue planned replacement of Butterfield filter underdrains on two complete filter units – this will be part of the maintenance program until all 16 filter underdrains have been replaced.  Meet Fire Hydrant Maintenance goal of every hydrant maintained once per year - this ensures compliance with the Fire Rating program. SEWER  CCTV all critical and problem areas of the City’s sewer infrastructure – this routine maintenance program ensures the sewer infrastructure operates at its highest efficiency.  Inspect remaining City manholes so 100% are documented as assets in Cartegraph.  Receive zero claims against the City for sewer backups – a continuing annual goal.  Maintain a violation-free treatment plant operation – a continuing annual goal.  Repair and/or replace ten manhole castings identified as top priority repairs  Complete the inspection of at least 33% of the gravity sewer system – a continuing annual goal.   217  IRRIGATION  Continue annual installation of isolation valves through the utility to lessen the number of customers impacted by a major repair or routine maintenance.  Rehabilitate 2 irrigation well sites – this will be an annual goal to ensure reliable irrigation service  Rebuild 3 Pressure Reducing Valves – this will be an annual goal to ensure reliable irrigation service.  Achieve over 95% system reliability.  Improve isolation of leaks through the installation of 6 new in-line valves in the Street in areas where mains run through back yards. STORMWATER  Annual completion of 100% CCTV of the City’s stormwater infrastructure in Basins Four and Five – to ensure stormwater discharges to the Columbia River are within NPDES requirements.  Develop a plan to conduct a system-wide condition assessment every five years – this ensures the NPDES program requirements are being met.  Identify, document, and mitigate 100% of all illicit discharges to the stormwater system. PROCESS WATER REUSE FACILITY (PWRF) & FARM OPERATIONS  Complete pump and force main reconfiguration at Foster Wells Lift station to provide more reliability and redundancy and to reduce unanticipated shutdowns and negative impacts to Processors.  Rehabilitate two freshwater wells – this annual effort ensures these wells continue to operate efficiently to supplement reuse water being used to irrigate the farm circles.  Implement new pre-treatment requirements for all processors to help ensure the long- term viability of the PWRF facilities.  Maintain functionality of PWRF while engineered improvements are being built.  Full implementation and use of Cartegraph for a work order system to track all work and costs  Continue pivot improvements – install and evaluate effectiveness of boom backs for improved circle track longevity between maintenance efforts. STREETS  Complete overlay projects on Highlands St., 2nd and Washington, W. Charles St., Maple & Rd. 96, Sunset Trail, 15th & Lewis, and E. B Street.  Complete thermo-plastic application on Argent, Court, Sylvester, and Industrial Way.  Crack seal from Rd. 36 to Rd. 56 between Court and Sylvester. EQUIPMENT RENTAL/FLEET  Continue refining inventory accountability.  Surplus older/unused vehicles and equipment.  Provide training and achieve EVT certifications for each mechanics.   218    219  INTERNAL SERVICE FUNDS   220  Equipment Rental CITY MANAGER PUBLIC WORKS DIRECTOR SUPERINTENDENT DIVISION MANAGER Chief Mechanic Mechanic Administrative Assistant I   221  Equipment O&M Govt 2017 Actual 2018 Actual 2019-2020 Budget 2021-2022 Budget Revenues Beginning Fund Balance - - 312,453 (4,514) Charges Goods & Services 1,106,028 1,046,848 3,045,359 3,190,437 Miscellaneous Revenue 10,148 14,171 12,000 14,000 Transfer In - - 115,306 - Total Revenues $ 1,116,176 $ 1,061,019 $ 3,485,118 $ 3,199,923 Expenditures Salaries & Wages 201,925 255,177 944,320 985,336 Personnel Benefits 60,766 108,461 386,208 404,032 Supplies 591,553 632,148 1,469,264 1,531,552 Services & Charges 220,105 202,207 384,636 384,324 Ending Fund Balance - - 300,690 (105,321) Total Expenditures $ 1,074,349 $ 1,197,993 $ 3,485,118 $ 3,199,923 End Fund Balance – This fund support maintenance of City’s vehicles. Expenses and revenue are not only based in routine maintenance, but some unexpected expenses are well. Though the fund balance is budgeted as expected to be negative at the end of the 2021-2022 biennium, we do not see a reason to increase rates yet as the variance in revenue is expenses is still low. However, this indicates that the City will need to review its shop rates in the next biennium.   222  Equipment O&M Utility 2017 Actual 2018 Actual 2019-2020 Budget 2021-2022 Budget Revenues Beginning Fund Balance - - 115,306 - Charges Goods & Services 468,237 354,484 275,932 264,002 Miscellaneous Revenue 1,379 6,314 - - Total Revenues 469,616 360,798 391,238 264,002 Expenditures Salaries & Wages 166,554 158,579 - - Personnel Benefits 67,381 64,911 - - Supplies 208,802 205,492 275,932 264,002 Services & Charges 44,856 39,740 - - Transfers & Pass Through’s - - 115,306 - Ending Fund Balance - - - - Total Expenditures $ 487,593 $ 468,722 $ 391,238 $ 264,002 515 - Equipment Replacement Govt 2017 Actual 2018 Actual 2019-2020 Budget 2021-2022 Budget Revenues Beginning Fund Balance - - 11,953,885 8,868,277 Charges Goods & Services 2,850,783 1,621,435 2,935,906 3,505,776 Miscellaneous Revenue 73,942 145,038 1,312 100,000 Debt Proceeds 525,938 14,567 29,134 - Transfer In - - - - Total Revenues $ 3,450,663 $ 1,781,040 $ 14,920,237 $ 12,474,053 Expenditures Supplies 83,433 160,996 220,000 - Transfers & Pass Through’s - - - 451,762 Capital Outlay 1,918,163 477,578 1,084,346 3,183,051 Debt Principal - - 2,000,000 - Ending Fund Balance - - 11,615,891 8,839,240 Total Expenditures $ 2,001,596 $ 638,574 $ 14,920,237 $ 12,474,053   223  Equipment Replacement Utility 2017 Actual 2018 Actual 2019-2020 Budget 2021-2022 Budget Revenues Beginning Fund Balance - - 5,045,599 4,433,018 Charges Goods & Services 535,480 628,218 1,233,452 1,871,178 Miscellaneous Revenue 61,884 65,061 - 20,000 Debt Proceeds - - - - Transfer In - - - - Total Revenues 597,364 693,279 6,279,051 6,324,196 Expenditures Supplies - 5,086 - 509,718 Transfers & Pass Through’s - - - - Capital Outlay 21,127 457,590 708,070 2,037,070 Ending Fund Balance - - 5,570,981 3,777,408 Total Expenditures $ 21,127 $ 462,676 $ 6,279,051 $ 6,324,196 Equipment Rental Personnel Summary Number of Employees (FTE) Position 2016 2017 2018 2019 2020 2021 2022 Public Works Director 0.11 0.11 0.11 0.11 0.11 0.11 0.11 Public Works Superintendent 0.24 0.24 0.24 0.24 0.24 0.24 0.24 Public Works Division Manager 1 1 1 1 1 1 1 Chief Mechanic 1 1 1 1 1 1 1 Mechanic 2 2 3 3 3 3 3 Staff Accountant 0 0 0.1 0.1 0.1 0.1 0.1 Administrative Assistant I 1.24 1.24 1.24 1.24 1.24 1.24 1.24 Total 5.59 5.59 6.69 6.69 6.69 6.69 6.69 No change proposed from 2020 to 2021.   224  Medical Service Fund CITY MANAGER HUMAN RESOURCES DIRECTOR   225  Medical Services 2017 Actual 2018 Actual 2019-2020 Budget 2021-2022 Budget Revenues Budgeted Beg Fund Balance - - 2,935,638 2,802,805 Charges Goods & Services 6,020,162 6,014,060 12,831,124 11,390,544 Miscellaneous Revenue 156,294 120,131 215,000 155,000 Transfer In - - - - Total Revenues $ 6,176,456 $ 6,134,191 $ 15,981,762 $ 14,348,349 Expenditures Salaries & Wages - 28,869 61,964 129,838 Personnel Benefits - 10,121 21,838 43,794 Services & Charges 4,890,558 5,718,846 10,980,014 11,121,450 Transfers & Pass Trough's - 75,000 - - Budgeted End Fund Balance - - 4,917,946 3,053,267 Total Expenses $ 4,890,558 $ 5,832,836 $ 15,981,762 $ 14,348,349 Dental Services 2017 Actual 2018 Actual 2019-2020 Budget 2021-2022 Budget Revenues Beginning Fund Balance - - 63,478 151,770 Charges Goods & Services 469,086 465,532 994,400 1,009,096 Miscellaneous Revenue 1,247 1,655 4,000 4,000 Transfer In - 75,000 - - Total Revenues $ 470,333 $ 542,187 $ 1,061,878 $ 1,164,866 Expenditures Services & Charges 456,359 440,969 991,844 1,000,538 Ending Fund Balance - - 70,034 164,328 Total Expenditures $ 456,359 $ 440,969 $ 1,061,878 $ 1,164,866 Medical/Dental Insurance Personnel Summary Number of Employees (FTE) Position 2016 2017 2018 2019 2020 2021 2022 HR Director 0 0 0 0 0.5 0.5 0.5 Senior HR Analyst 0 0 0.3 0.3 0 0 0 Total 0 0 0.3 0.3 0.5 0.5 0.5 2020 – Human Resources Director is replacing Senior HR Analyst to manage City’s Medical/Dental insurance program. No change proposed from 2020 to 2021.   226  Central Stores Fund 530 - Central Stores 2017 Actual 2018 Actual 2019-2020 Budget 2021-2022 Budget Revenues Beginning Fund Balance - - 13,080 8,000 Miscellaneous Revenue 125 129 110 110 Total Revenues 125 129 13,190 8,110 Expenditures Supplies - - 1,000 1,000 Ending Fund Balance - - 12,190 7,110 Total Expenditures $ - $ - $ 13,190 $ 8,110 No staffing in aforementioned Fund.   227  ALL OTHER FUNDS     228  General CIP Fund General CIP 2017 Actual 2018 Actual 2019-2020 Budget 2021-2022 Budget Revenues Budgeted Beg Fund Balance - - - - Intergovernmental 3,192,349 7,273,596 17,262,000 15,666,000 Charges Goods & Services - - - - Miscellaneous Revenue 35,000 (26,133) 15,788,500 5,576,047 Capital Contribution Cash 26,748 - - - Debt Proceeds - - 7,921,000 - Transfer In 4,455,223 2,332,477 32,637,244 13,674,000 Total Revenues 7,709,320 9,579,940 73,608,744 34,916,047 Expenditures Supplies 409,715 125,326 - - Services & Charges 437,454 209,723 1,702,185 - Transfers & Pass Through’s - 86,667 - - Capital Outlay 6,531,019 9,550,946 71,906,559 34,916,047 Debt Principal - - - - Debt Interest - - - - Budgeted End Fund Balance - - - - Total Expenditures 7,378,188 9,972,662 73,608,744 34,916,047   229  Non-recurring Capital Expenditures – All capital construction, with the exception of the Utilities construction, are carried out in the General Capital Improvement Project Fund. All non-recurring capital expenditure in this fund have been discussed in other funds. Transportation 26,992 Lewis Street Overpass 16,452 Citywide Traffic Controller Upgrades - Phase 2 2,870 Annual Pavement Preservation Program 1,777 Lewis Street Corridor Improvements - 2nd Avenue to 5th Avenue 1,635 Sandifur Parkway Widening - Road 52 to Road 60 958 Argent Road & Road 36 Intersection Improvements 620 Sylvester Street Safety Program - Phase 1 522 Sylvester Street Safety Program - Phase 2 476 Argent Road Improvements - Saraceno Way to Road 36 420 North Road 100 Pedestrian/Bicycle Improvements 350 Pedestrian/Bicycle Access Sylvester Street Overpass 300 Court Street & Road 68 Intersection Improvements 183 Burns Road Pedestrian/Bicycle Pathway - Road 100 to Road 90 152 Pedestrian/Bicycle Access Road 100 Interchange 120 Burns Road Pedestrian/Bicycle Pathway - Road 90 to Road 84 111 South 10th Avenue & W. Lewis Street Advanced Intersection Warning 47 Fire 4,158 Fire Station 84 Replacement 3,040 Fire Station 85 Addition 449 Fire Station 87 Property Purchase 265 Station Alerting System 262 Training Center Improvements 142 Parks & Recreation 3,667 Sacajawea Levee Lowering 2,657 Franklin County Irrigation District (FCID) Trail - Phases 1 and 2 415 Road 84 Park 270 Marina Dock Replacement - Dock B 200 Highland Park Parking and Field Expansion 75 Road 48 Park 50 Grand Total 34,817 No staffing in the aforementioned fund.   230  Cemetery Endowment Fund Cemetery Endowment 2017 Actual 2018 Actual 2019-2020 Budget 2021-2022 Budget Revenues Budgeted Beg Fund Balance - - 532,848 592,588 Charges Goods & Services 17,552 20,973 40,000 42,000 Miscellaneous Revenue 1,193 5,087 22,500 10,000 Total Revenues 18,745 26,060 595,348 644,588 Expenditures Transfers & Pass Through’s - - - - Budgeted End Fund Balance - - 595,348 644,588 Total Expenditures - - 595,348 644,588   231  Old Fire Pension Fund No staffing in the aforementioned fund. Old Fire OPEB Fund 619 - Old Fire OPEB 2017 Actual 2018 Actual 2019-2020 Budget 2021-2022 Budget Revenues Budgeted Beg Fund Balance - - 2,907,441 3,507,950 Miscellaneous Revenue 454,273 (142,069) 10,000 10,000 Dividends 53,582 57,074 104,000 104,000 Total Revenues 507,855 (84,995) 3,021,441 3,621,950 Expenditures Salaries & Wages - - - - Personnel Benefits 94,835 87,540 177,706 175,080 Services & Charges 54,052 5,661 154,830 153,099 Budgeted End Fund Balance - - 2,688,905 3,293,771 Total Expenditures 148,887 93,201 3,021,441 3,621,950 No staffing in the aforementioned fund. 610 - Old Fire Pension 2017 Actual 2018 Actual 2019-2020 Budget 2021-2022 Budget Revenues Budgeted Beg Fund Balance - - 2,755,894 3,040,087 Intergovernmental 63,503 73,414 147,000 182,988 Miscellaneous Revenue 347,898 (181,109) 17,556 16,800 Dividends 36,220 41,675 68,620 68,620 Debt Proceeds - 9,016 14,944 6,102 Total Revenues 447,621 (57,004) 3,004,014 3,314,597 Expenditures Salaries & Wages 120,503 128,399 271,400 270,000 Personnel Benefits - - - - Services & Charges 5,870 4,923 8,712 10,464 Budgeted End Fund Balance - - 2,723,902 3,034,133 Total Expenditures 126,373 133,322 3,004,014 3,314,597   232    233  CAPITAL PLAN AND BUDGETING The Capital Improvements Projects section lists capital improvement projects budgeted for the six-year period, including funding sources. The CIP is a six-year plan for capital and major improvements that support the City of Pasco’s current and future population and economy. The City’s CIP is a long-range schedule of proposed public facilities, infrastructure and major projects, which includes estimated costs and sources of funding over a six-year period. The CIP is updated annually for the purpose of confirming and/or reorganizing projects on a priority basis and to prepare the Capital Projects Budget. The Council’s adoption of the CIP in no way constitutes an appropriation of funds to a specific project. The City will make capital improvements in accordance with an adopted Capital Improvement Plan as budgeted within the current biennial budget. The City will determine the most cost-effective financing method for all new projects. For each capital project and for each year of the six-year planning period, the CIP shall include an estimate of the cost of construction, an estimate of the annual O&M impact, and anticipated sources of funding. Staff presented and Council approved Council with 2021-2026 Capital Improvement Plan with updated list of projects and corresponding expenses. Due to operational impact of the COVID-19 pandemic staff time to prepare an in-depth Capital Improvement Plan with individual project sheets was reallocated of staff’s time to combat COVID-19.   234      235  2021-2026 Capital Improvement Plan   236    237    238    239    240    241    242  2021-2022 Proposed Capital Budget Area/Project Name 2021-2022 Proposed Sewer 31,969 WasteWater Treatment Plant (WWTP) Improvements - Phase 1 19,660 Northwest Area Trunkline - Sandifur Parkway Extension to Desiree Street 3,681 Northwest Area Lift Station 3,250 WasteWater Treatment Plant (WWTP) Improvements - Phase 2 2,700 Court and Sylvester Sewer Main Improvement 1,500 Road 52 and Pearl Street Lift Station - Riverview 300 Southeast Industrial Trunkline 200 Annual Sewer Upsize - Development 200 Annual Sewer System Improvements - Development 200 Pearl Street Lift Station 144 PWRF 31,745 Process Water Reuse Facility (PWRF) Primary Treatment Improvement 26,641 Columbia East Lift Station & Force Main 5,104 Transportation 26,992 Lewis Street Overpass 16,452 Citywide Traffic Controller Upgrades - Phase 2 2,870 Annual Pavement Preservation Program 1,777 Lewis Street Corridor Improvements - 2nd Avenue to 5th Avenue 1,635 Sandifur Parkway Widening - Road 52 to Road 60 958 Argent Road & Road 36 Intersection Improvements 620 Sylvester Street Safety Program - Phase 1 522 Sylvester Street Safety Program - Phase 2 476 Argent Road Improvements - Saraceno Way to Road 36 420 North Road 100 Pedestrian/Bicycle Improvements 350 Pedestrian/Bicycle Access Sylvester Street Overpass 300 Court Street & Road 68 Intersection Improvements 183 Burns Road Pedestrian/Bicycle Pathway - Road 100 to Road 90 152 Pedestrian/Bicycle Access Road 100 Interchange 120 Burns Road Pedestrian/Bicycle Pathway - Road 90 to Road 84 111 South 10th Avenue & W. Lewis Street Advanced Intersection Warning 47 Water 19,749 Reservoir Storage Tank 6,450 Butterfield Water Treatment Plant (WTP) Improvements 5,000 Transmission Main - West Pasco Water Treatment Plant (WPWTP) to Zone 3 2,500 Automated Meter Reading 1,750 West Pasco Water Treatment Plant (WPWTP) Improvements 1,475 Emergency Power Improvements 1,100 Water Main Replacement - Richardson Road (Road 92 to Road 96) 460 Water Main Replacement - Star Lane (Road 100 to Road 97) 235 Annual Water System Improvements - Development 200 Annual Water Upsize - Development 200 Water Main Extension - Alton Street (Wehe Avenue to the alley west of Owen Street) 187 Water Main Extension - Road 103 (Maple Street to Willow Way) 113   243  Area/Project Name 2021-2022 Proposed Fire 4,158 Fire Station 84 Replacement 3,040 Fire Station 85 Addition 449 Fire Station 87 Property Purchase 265 Station Alerting System 262 Training Center Improvements 142 Parks & Recreation 3,667 Sacajawea Levee Lowering 2,657 Franklin County Irrigation District (FCID) Trail - Phases 1 and 2 415 Road 84 Park 270 Marina Dock Replacement - Dock B 200 Highland Park Parking and Field Expansion 75 Road 48 Park 50 Stormwater 779 Sylvester Pipe Relining 330 1st Avenue Pipe Rehab 249 Annual Stormwater Improvements - Development 200 Irrigation 620 Well Capacity Upgrades 470 Annual Irrigation Upsize - Development 100 Annual Irrigation System Improvements - Development 50 Grand Total 119,680   244