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HomeMy WebLinkAbout2007 Final BudgetCity of Port Townsend Images of Port Townsend from city webcam at www.cityofpt. us Final Budget 2007 Table of Contents Page CityManager Budget Message ........................................................................................... ..............................i CityOfficials ..................................................................................................................... ..............................1 Citizen Advisory Boards, Commissions, and Committees ................................................ ..............................2 Overview.......................................................................................................................... ............................... 3 BudgetPolicies .................................................................................................................. ..............................5 FundSummary ................................................................................................................ .............................11 GeneralFund Summary .................................................................................................... .............................12 General Fund Revenues and Expenditures ...................................................................... .............................13 General Fund Departmental Budgets Legislative— City Council ............................................................................................. .............................18 CityManager ................................................................................................................. .............................20 CityAttorney ................................................................................................................. .............................22 CityClerk ...................................................................................................................... .............................25 Development Services Department .............................................................................. .............................28 PoliceDepartment ......................................................................................................... .............................32 FinanceDepartment ....................................................................................................... .............................35 Facilities Maintenance and Public Restrooms Department ........................................... .............................38 PEGAccess Studio ...................................................................................................... .............................39 Non - Departmental ....................................................................................................... ............................... 41 FundEquity Transactions .............................................................................................. .............................42 Special Revenue Funds DrugEnforcement Fund ........................................................................................... ............................43, 47 ContingencyFund .................................................................................................... ............................43, 47 Community Development Block Grant Fund ........................................................... ............................43, 48 Fire Equipment Joint Maintenance Fund .................................................................. ............................44, 48 LodgingTax Fund .................................................................................................... ............................43, 50 Community Services Fund (Service Providers, Parks, Recreation and Pool Departments) .................45, 52 SystemDevelopment Charge Fund .......................................................................... ............................44, 49 StreetFund ............................................................................................................... ............................45, 53 Fireand EMS Fund .................................................................................................. ............................45, 51 LibraryFund .................................................................................................................. .............................56 Public Works Administration and Engineering Fund .................................................... .............................61 Debt Service Fund GeneralGovernment Debt Service ................................................................................ .............................64 UtilityDebt Service ....................................................................................................... .............................67 Capital Project Funds CapitalImprovement Fund ....................................................................................... ............................70, 72 City Hall Annex Construction Fund ......................................................................... ............................71, 73 Fire Station Construction Fund ................................................................................. ............................71, 74 UtilityConstruction Fund ......................................................................................... ............................71, 75 CapitalImprovement Plan ............................................................................................. .............................76 Enterprise Funds & Trust Funds Water /Sewer Utility Fund ...................................................................................... ............................... 82,91 StormwaterUtility Fund ........................................................................................... ............................93, 94 EquipmentRental Fund ................................................................................................. .............................95 Firemen's Pension and Relief Fund ............................................................................... .............................96 City of Port Townsend Final Budget 2007 Table of Contents Transmission Line Replacement Fund ............................................................................. .............................97 MemorialFund ................................................................................................................. .............................98 GolfCourse Fund ............................................................................................................. .............................99 Miscellaneous- Appendix BudgetCalendar ............................................................................ ............................... ............................100 LegalStatutory Debt Margin ......................................................... ............................... ............................102 Property Tax Levy by Taxing District Chart ................................. ............................... ............................104 TaxLevy Rate History .................................................................. ............................... ............................105 PersonnelServices ......................................................................... ............................... ............................106 Employee FTE (Full Time Equivalences) Table ........................... ............................... ............................109 Glossary......................................................................................... ............................... ............................111 City of Port Townsend Final Budget 2007 City of Port Townsend 'PORT 74 Office of the City Manager 250 Madison Street, Suite 2, Port Townsend, WA 98368 (360) 379 -5047 FAX (360) 385 -4290 c, MEMORANDUM TO: City Council FROM: David Timmons, City Manager RE: 2007 Final Budget I am pleased to present the final budget plan for fiscal year 2007. In December 2006, the City Council adopted the 2007 Final Budget. It was comprised of a detailed line item budget of all the city programs and services. Later, staff presented narrative information in a programmatic format for ease of review and understanding. The attached document is the 2007 Final Budget in programmatic form and represents a combined effort on the part of many city staff members. I want to extend a thank you to all who have contributed in this effort, especially the City Council. The 2007 Budget maintains status quo for services in some areas, reduces services in others and enhances yet other areas. One could be confused by such a statement, unless they are familiar with the unique aspects of public finance. Governmental accounting is more focused on reporting services and accountability, than it is on profit or loss. It is very frustrating for us to be bound by mandated accounting systems and terms while recognizing the need to clearly communicate the status of the City's finances to the public. For Administration and City Council, it is an ongoing challenge to carefully present the budget and the issues that the community's budget faces. In presenting this budget to the City Council, administration offered a suggestion to view the budget in three broad categories. First is the "General Services" such as administration, public safety, roads, parks and library. These are services that are co- dependent on property and sales taxes. Second is the "Enterprise Activities" such as water, sewer, stormwater and equipment rental. These are the activities that require no tax subsidy and raise their own revenues. The third category is the "Capital Programs." These consist of debt, and major construction projects such as a park, road or building and they rely on earmarked income. In analyzing the City's overall finances for 2007, we noted that the "General Services" are constrained due to the revenue growth falling behind the growing cost of services. One example is the 100% increase in the pool lease agreement with the school district. Another is the 30% cost increase to use the county jail. Increases such as these erode the ability to maintain services that are dependent on the same source of funds. In effect, these services must compete for an ever - limited source of revenues. The "Enterprise Activities" on the other hand are healthy and doing well while the "Capital Programs" essentially depend on our ability to obtain funds to continue the project(s). The city administration's approach in assisting council with their deliberations, has been and remains, to focus on specific areas of the budget that allows council to see the scope and extent of funding necessary to balance services. By doing this, we continue to identify funding needs primarily in city streets and parks. There exists a significant amount of deferred maintenance in these two services, the level of which is obvious. It is an accumulation that has amassed over several decades as a result of unfunded mandates, tax limitations, trickle down and abandonment of community services at all levels of government. Our pool is a distinct example of this trickle down and abandonment of support. It was built and owned by the School District. They abandoned this obligation and the County assumed it. The County later abandoned the pool and the City stepped in. Currently the $112,250 annual subsidy to the pool does not come from a special source of revenue or pool user fees. Instead, it is funded from the same source of city general revenues used by all other general city services (police, parks, library and streets.) Previous requests to the voters were an attempt to "reboot" the tax burden in the community and to allocate a new voter approved private utility taxes for deferred maintenance services. Unfortunately this did not receive support and services, particularly library and police, are beginning to be compromised. There is no silver bullet to this dilemma, nor is there any way that enough money can be squeezed out of the balance of the "General Services" to make even the slightest dent in the level of deferred maintenance. Sharing the pain across all services will only weaken the whole system. Privatization options to city services do not exist. The longer we defer, the more costly it will be to correct the funding deficiency. And as we delay, failures that develop in the system will require unplanned attention, which will come at the expense of planned programs and community services. That was the driving factor in the Council's action to increase the city utility tax and allocate those moneys to help address this need. This provides some support, but this new tax revenue is not able to take care of the full extent of the need. In addition, the Council sought input from the citizen advisory boards that support the Library and Parks. Both boards made recommendations to modify and consolidate services, and do a better job with smaller expectations. These measures combined, begin to address the issues, but still only provide a down payment on what really needs to happen. The 2007 Final Budget still supports building partnerships. It also supports rational privatization where this option exists. The capital programs focus on improving infrastructure in support of economic development of Upper Sims Way. Major projects like City Hall and the Fire Station are complete and will be closed out, and audited by the state auditor. The need for a new police station and library facility improvements will continue to advance as funding becomes available for the next phase. This budget includes a new health care plan for non - bargaining unit employees that lowers the city's cost and maintains employee contributions. We are actively negotiating with the two bargaining units to also accept a new benefit program that will lower costs. In addition, we are staffing Development Services with the necessary skills to improve service delivery in support of our efforts to grow Upper Sims infrastructure. Since the single largest source of sales tax income within the City is new construction, facilitating permit activity will also help contribute a return on this investment in development services. The Fire District consolidation was completed in time to be incorporated into the 2007 budget. The property tax for 2007 in support of General Services is $1,603,550. The fire district agreement provides that 50% of the city's General Services property tax is to be allocated to fund city fire and emergency medical services. The balance of the city property tax remaining ($801,778) is all used to fund other city services. 2007 estimated payments to the county for health services, voter registration, district court, jail, animal control and dispatch amount to $626,018. This leaves abalance of $175,754 in city property tax revenue to fund the remaining city services. Sales tax, B &O business taxes, utility taxes and user fees support the balance of the city "General Services ". A budget represents a snapshot in time and is an estimate of need spanning an 18 -month period. Starting with 6 months of planning followed by 12 months of monitoring and implementation, it is an integral part of what we do. A budget is also dynamic in that it changes as issues and community demands change. So what is presented herein is our best estimate of the needs and projections for 2007. Changes will occur and they will be presented to the City Council in the form of a supplemental budget formally amending this document during the later part of the year. Many staff hours and City Council time was put into this document. It is reflective of their skills and dedication in service to Port Townsend. If you have questions, please use our Citizen Concern link on the city's web site www.citLof t.us , and it will be directed to the correct source for a response. ii City Officials COUNCILMEMBERS Geoff Masci Term expiring December 2007 Laurie Medlicott Term expiring December 2007 Frank Benskin Term expiring December 2007 Catharine Robinson Term expiring December 2007 Michelle Sandoval Term expiring December 2009 Scott Walker Term expiring December 2009 Resigned Apri12007 Mark Welch Term expiring December 2009 George Randel Term expiring December 2007 Appointed Apri12007 City of Port Townsend CITY MANAGER David Timmons DEPARTMENT DIRECTORS Public Works Director Kenneth Clow Development Services Director Leonard Yarberry Finance Director Michael Legarsky Police Chief Conner Daily Library Direector Theresa Percy City Attorney John Watts City Clerk Pamela Kolacy Citizens Advisory BOARDS, COMMISSIONS AND COMMITTEES (as of 10 -2006) ARTS COMM] Beatus Meier StanleyRubin Nancy Newman Clifford Wood Vacancy SSION Frank Vane Donna Bickley Joey Pipia Vacancy CIVIL SERVICE COMMISSION Ronald V. Kosec Gail A. Ryan Vacancy PARKS & RECREATION Patsy Caldwell Marilyn Muller Rosemary Sikes Monica Mick -Hagar Ken Schordine Helene Fatt Barbara McColgan Pastore PLANNING COMMISSION Lyn Hersey Roger Lizut Harriet Capron Cindy Thayer Liesl Slabaugh Julian Ray George D. Randels Steven Emery Jeff Kelety Alice King George Unterseher HISTORIC PRESERVATION Roger Lizut Michael Colbert Charles Paul Rosalind Russell Barbara Marseille Richard Berg Marsha Moratti LIBRARY ADVISORY BOARD Bill Maxwell Eileen Price Mark Decker Julia Owens Thomas Kate Schumann NON - MOTORIZED TRANSPORTATION COMMITTEE David Thielk Marion Huxtable Owen Fairbank Chris R. Jones Bly Windstorm Jane Whicher Melinda Bower Jolly Wahlstrom Peter Lauritzen Steven Kraght P.E.G. ACCESS COORDINATING COMMITTEE Gary Nelson Kitti deLong John Watts Geoff Masci Theresa Percy Tom Opstad Julian Ray Karen Johnson LODGING TAX ADVISORY COMMITTEE Laurie Medlicott Jim Pivarnik Lawrence Graves Tim Caldwell Mari Mullen Steve Shively Cliff Carpenter Steven Kraght John Eissinger Keven Elliff Dave Robison Tim Stover Sue McIntire City of Port Townsend 2 General Fund Revenues The City of Port Townsend provides what are considered general governmental services authorized by state law, including public safety, streets, parks and recreation, planning and zoning, permits and inspections, general administration, water, resources. The funds are segregated for the purpose of carrying on specific activities or attaining certain objectives. Funds are budgeted on a cash basis in accordance with the Revised sewer and storm services, garbage and Code of Washington (RCW) 36.33. library services. OVERVIEW Budgeting is an essential element of the financial planning, control, and evaluation processes of government. The planning process involves determining the types and levels of services to be provided and allocating available resources among various departments, programs or functions. Financial control and evaluation procedures typically focus upon assuring that fixed expenditure limitations (appropriations) are not exceeded, and on comparing estimated and actual revenues and expenditures. The budget authorizes and provides control of financial operations during the fiscal year. Upon adoption, the expenditure estimates, as modified by the Council, are enacted into law through the passage of an appropriations ordinance. The appropriations constitute maximum expenditure authorizations during the fiscal year, and cannot be exceeded until subsequently amended by the Council. Expenditures are monitored through the accounting system to assure budgetary compliance. The City of Port Townsend's accounting and budgeting systems are organized and operated on a fund basis as required by state law. A fund is defined as a fiscal and accounting entity with a self - balancing set of accounts recording cash and other financial City of Port Townsend While typically thought of as a financial activity done to satisfy state law, budgeting is a process of planning. Fiscal planning involves all elements of government and should be considered one of the most important functions for city officials. The process of budgeting will not only allocate fiscal resources to meet needs and provide services, but will set a direction for the future. The elements of good planning include identifying community needs, city resources, the capability to meet community needs, and a plan to match such resources to the needs. The planning for this document starts with the Council retreat in early spring. At that retreat Council discusses many issues including program priorities and capital project prioritization and timing. The City Manager's budget is presented to the full Council during several work sessions in October. Two public hearings are then scheduled for November with a final public hearing and adoption date in early December. Related to this process is the City's Capital Facilities Plan as required by the Growth Management Act (GMA). This plan has significant requirements in the area of facilities planning and capital improvement financing. The GMA is to ensure that those public facilities and services necessary to support General Fund Revenues development shall be adequate to serve the development at the time the development is available for occupancy and use, without decreasing current levels of service below locally established minimum standards. The Capital Facilities Plan (CFP) is segregated into major categories: General Governmental, Transportation, Water, Sewer, Storm and Surface Water and Parks and Recreation. The City adopted a Capital Facilities Plan as part of the Comprehensive Plan. Subsequent Council policy decisions and amendments to the Comprehensive Plan require periodic review and amendments to the Capital Facilities Plan. This budget document is developed in a manner to study and review the direction of the City of Port Townsend. This document outlines the manner in which financial resources will be managed during the fiscal year. The course the city is taking can be changed through the allocation of financial resources. The major groups who participate in the budget process are the City Manager, City Council, department directors, city committees and commissions, city staff, and interested Port Townsend citizens. A budget document is read by a diverse group of persons. The budget must describe clearly and completely the nature and scope of policies, plans and programs for the year. It must communicate this information at different levels and for different purposes. One of the most important functions of the budget document is to describe future implications and relationships of policies, plans and programs to members of the public. The budget document is an opportunity for the public to acquire background information necessary to City of Port Townsend provide meaningful comment and feedback to members of the City Council and City staff during the year. The City of Port Townsend's budget process is designed to provide essential structure for the financial planning, control, and evaluation process of government, presenting a forecast of expected resources and the purposeful distribution of those revenues. Once adopted, the budget is a formal expression of public policy on the City's objectives and priorities and on how resources will be provided to meet those objectives. State law establishes the budget process and time limits. The calendar for the City of Port Townsend's budget can be found at the end of this document in the addendum section. The financial aspects of the budget are monitored in regular monthly reports issued by the Finance Department comparing actual expenditures and revenues with the budget. The budget can be changed (amended) at any time after it is adopted by the City Council passing another ordinance in an open public meeting. Normally, the budget is reviewed during the year to identify any adjustments. In the City of Port Townsend, policy begins with general direction provided by the City Council. The City budget process serves the function of creating a framework to implement the policies set forth by that body to administer the City organization and deliver the various services to the community. General Fund Revenues Under the general guidance of the City Manager, department directors have primary responsibility for formulating budget proposals in line with Council priorities. Budget policy begins with an understanding of the needs and issues important to the community that the government serves. General goals and priorities are identified in order to apply the available financial resources of the City for specific funding proposals. Previous budgets are considered in this process, thereby providing continuity with previous programming. The Finance Department is responsible for coordinating all aspects of the budget process on behalf of the City Manager, analyzing department budget information, preparing budget revenue estimates, assembling the budget document and providing overview financial monitoring and reporting once the budget is adopted. The Finance Department assists in identifying budget problems, formulating solutions and alternatives, and implementing corrective action approved by the City Manager. The City uses a line -item budget development approach and uses that level of detail as a backbone to the actual budget document. However, the budget is formally adopted at the fund level. This budget seeks to achieve these four interrelated functions: A Policy Tool The City's budget process is conducted in a manner that allows City's officials an opportunity to comprehensively review the direction of the City and to redirect its activities by means of the allocation of City of Port Townsend financial resources. On this basis, the budget sets policy for the following year. This budget also facilitates the evaluation of City programs by providing a means to measurably examine the financial activities of the City departments over time. An Operations Guide This budget provides financial control by setting forth both 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 products of the budget process. A Financial Plan The budget outlines the manner in which the financial resources of the City will be managed during the budget period. This allocation of resources is based on understanding both the current year's needs and a long -term view of the development of the City's programs. The budget takes into account unforeseen contingencies and provides for the need for periodic adjustments. As a Communication Medium This budget provides management information as a comprehensive tabulation of information regarding both the character and scope of City activity. No budget can be effective unless it communicates. Since this budget has a diverse audience, it seeks to communicate at several levels and for several purposes. It seeks to communicate clear policy at a usable level of detail to City employees, to communicate significant policy issues and options in a form that can be acted on by officials, and to communicate the plans of the City to its constituents in a manner which affords them an opportunity General Fund Revenues to provide meaningful comments to the elected officials. BUDGET SUMMARY While the budget planning and adoption process is discussed above, there are many issues that are important to discuss in order to understand the dynamics of this document. For financial and accounting purposes, municipal operations are divided into two broad categories: general governmental and proprietary. Budgets are established for all funds. There are 28 budgeted funds in the City of Port Townsend and they are classified within seven basic fund groups, as described below General governmental funds include three funds. The first is the General Fund which provides basic City services such as city administration, legislative, legal, personnel services, risk management, financial services, public safety, street maintenance, planning, building, zoning, facilities, and associated support functions. The resources to support these activities are primarily taxes and user fees. Special Revenue funds account for the proceeds of specific revenue sources other than special assessments, expendable trusts or major capital projects. These revenues finance particular activities or functions as required by law or administrative regulations. Debt Service funds accumulate resources and account for the payment of principal and interest for the City's general obligation long -term debt and special assessment debt. The City pledges its full faith and credit for payment of these obligations. • Resources for redemption of Council- approved (limited) issues are usually from the general property City of Port Townsend tax levy. • Resources for payment of special assessment debt are from assessments levied against benefited properties. • Resources for redemption of revenue bonds are from the sales of the goods and services. The debt service funds are the General Obligation Debt Service Funds, and the Water /Sewer Revenue Bond Funds. Capital Project funds account for the acquisition or development of major capital facilities, except those projects financed by the enterprise funds. Sources of revenue for these funds can include bond proceeds, federal /state grants, general property taxes, interest earnings, and transfers from other funds. Enterprise funds are established for government activities that are financed and operate in a manner similar to private business. The user primarily finances costs of providing services to the general public. There are two types of enterprise funds. They are the Water /Sewer Fund and Storm and Surface Water Fund. Internal Service funds account for the financing of goods and services provided by one department or agency to other departments or agencies in the City. The City's internal service fund is the Equipment Rental and Reserve Fund. Fiduciary funds include Pension Trust, Expendable Trust, and Agency Funds, which are used to account for assets held by the City in a trustee capacity or as an agent for individuals, private organizations, other governmental units, and /or other funds. The City has five of these funds, which are: General Fund Revenues • Firemen's Pension and Relief • Transmission Line Replacement • Treasurer's Agency • Deferred Compensation- Kemper • Deferred Compensation -ICMA • Memorial • Golf Course • Northwest Maritime Center GENERAL FUND REVENUES The City's General Fund receives the greatest amount of its operating revenues from a variety of taxes. State law limits those taxes. Property Tax Property taxes are collected on 100 percent of assessed valuation (A.V.) as determined by the Jefferson County Assessor's Office in accordance with state law. The maximum that the City can levy is 101 percent of the highest of the three (3) most recent years' levies, plus the impact of new construction at the previous year's levy rate, plus miscellaneous adjustments. The new construction assessed value amount for 2007 is estimated at $25,000,000 as compared to $36,000,000 in 2006. State statutes do not allow the city to levy more than $3.60 per $1,000 of assessed valuation. The City of Port Townsend is well below the statutory limit, and it is at $1.41 per $1,000 of assessed valuation for 2007. In November 2001, the voters of the state approved Initiative 747, which sets limits for annual increases in property taxes to 1% without a vote of the people. In November of 1997, the voters of the state approved Referendum 47, which sets limits City of Port Townsend in three areas for property tax: 1) The State tax levy increases now annually limited to the lesser of the I.P.D. inflation factor or 1 %; 2) The 1997 temporary tax reduction was made permanent; and 3) A new limit factor for the local jurisdictions on property tax. As previously stated cities still are limited to 101 %, but now there is an inflation factor called an implicit price deflator (IPD). The IPD for personal consumption in the United States is published for the most recent twelve -month period by the Bureau of Economic Analysis of the Federal Department of Commerce in September of the year before the taxes are due. Following this definition the percentage change in the IPD has been calculated at 3.419 percent for 2007. As the referendum provides, cities may go above the IPD to any percentage up to the 101 percent. In order to levy the full 101 percent, a substantial need must exist, and a resolution or ordinance must be adopted by a supermaj ority of the City Council. Those provisions of Referendum 47 do not limit Cities under a population of 10,000. Property Tax Levy Rate by District District 2007 2006 2005 2004 2003 PUD $0.10498 Port $0.20334 City EMS $0.31659 Hospital $0.34282 County $1.52245 City Gen. $1.40629 State $2.35345 Local Sch. $2.06897 County Fu. $0.04752 $0.10826 $0.21000 $0.31544 $0.36373 $1.57006 $1.39798 $2.55206 $2.24764 $0.04900 $0.09880 $0.22038 $0.44585 $0.41705 $1.76250 $1.97334 $2.76464 $3.11351 $0.05388 $0.10570 $0.11405 $0.22822 $0.23940 $0.43941 $0.43594 $0.11526 $0.47605 $1.76360 $1.83214 $1.94483 $1.92767 $2.81487 $2.86989 $3.40501 $3.46895 $0.05555 $0.05827 Totals $8.36641 $8.81417 $10.81370 $11.19749 $11.42236 General Fund Revenues City Regular Levy The City remains highly dependent on property tax revenues, as other revenue sources are not increasing sufficiently to meet the basic needs in providing necessary services. City EMS Levy Rate Assessed Property Per Valuation Tax Rate 1997 Assessed Property Per 1998 Valuation Tax $1,000 1997 $490,190,800 $1,091,268 $2.22621 1998 $566,060,010 $1,184,232 $2.09206 1999 $571,156,455 $1,275,369 $2.23967 2000 $581,462,160 $1,304,964 $2.24428 2001 $598,546,125 $1,333,740 $2.22830 2002 $714,495,450 $1,365,808 $1.91157 2003 $730,161,880 $1,407,511 $1.92767 2004 $753,279,600 $1,465,001 $1.94483 2005 $775,296,585 $1,529,923 $1.97334 2006 $1,156,702,595 $1,617,047 $1.39798 2007 $1,193,600,895 $1,678,549 $1.40629 The City remains highly dependent on property tax revenues, as other revenue sources are not increasing sufficiently to meet the basic needs in providing necessary services. City EMS Levy Rate Assessed Property Per Retail Sales & Use Tax Retail Sales and Use Tax consists of two city portions. The first portion is a local tax of one -half of one percent less fifteen percent paid to the county. The second portion includes an "optional" one -half of one percent, less the fifteen percent county share. This provides a combined city portion of 0.0085 from each dollar of local sales. This was authorized by the State Legislature in 1982 and further authorized by the city and provided for in Port Townsend's Municipal Code Title 3, City of Port Townsend Chapter 3.12. The sales tax was adopted in 1935 as an integral part of the Washington State Revenue Act. The state's portion of the sales tax history is: Year Rate 1935 Valuation Tax $1,000 1997 $490,190,800 $122,548 $0.25000 1998 $566,060,010 $132,209 $0.23356 1999 $571,156,455 $139,862 $0.24609 2000 $581,462,160 $290,731 $0.50000 2001 $598,546,125 $299,273 $0.50000 2002 $714,495,450 $309,462 $0.43312 2003 $730,161,880 $318,307 $0.43594 2004 $753,279,600 $330,999 $0.43941 2005 $775,296,585 $342,666 $0.44585 2006 $1,156,702,595 $364,870 $0.31544 2007 $1,193,600,895 $377,882 $0.31659 Retail Sales & Use Tax Retail Sales and Use Tax consists of two city portions. The first portion is a local tax of one -half of one percent less fifteen percent paid to the county. The second portion includes an "optional" one -half of one percent, less the fifteen percent county share. This provides a combined city portion of 0.0085 from each dollar of local sales. This was authorized by the State Legislature in 1982 and further authorized by the city and provided for in Port Townsend's Municipal Code Title 3, City of Port Townsend Chapter 3.12. The sales tax was adopted in 1935 as an integral part of the Washington State Revenue Act. The state's portion of the sales tax history is: Year Rate 1935 2.00% 1941 3.00% 1955 3.30% 1959 4.00% 1965 4.20% 1967 4.50% 1976 4.60% 1979 4.50% 1981 5.50% 1982 5.40% 1983 6.50% There has been no adjustment to the state's portion since 1983. City Sales Tax Collections Year Amount 1997 $1,052,047 1998 $1,079,409 1999 $1,146,378 2000 $1,122,584 2001 $1,347,379 2002 $1,364,042 2003 $1,440,383 2004 $1,555,448 2005 $1,701,688 2006 $1,693,267 2007* $1,747,900 * = estimated Business and Occupation (B&O) Tax The business and occupation tax was imposed in 1968 with the adoption of Port Townsend Municipal Code Title 5, Chapter 5.04. This tax applies to the gross income of businesses at the rate of 0.002. This tax is due and payable in quarterly installments: March, June, September and December. General Fund Revenues B &O Tax Collections Year Amount 1995 $257,569 1996 $262,360 1997 $269,241 1998 $287,864 1999 $298,308 2000 $299,379 2001 $353,538 2002 $347,203 2003 $378,963 2004 $414,029 2005 $536,150 2006 $622,305 2007* $618,000 * = estimated State Shared Revenues State shared revenues are derived from gasoline taxes, liquor receipts (profits and excise taxes) and motor vehicle fuel excise taxes. These taxes are collected by the State of Washington and shared with local governments based on population. The Office of Financial Management determines the population figures used for the distribution of state - shared revenues. Port Townsend's 2007 estimated population is 8,820. Port Townsend should be prepared for lower per capita distributions of state - shared revenues in the future. Liquor Receipts Profits and Taxes Cities and towns are responsible for the policing of liquor establishments located within their limits but are precluded from taxing them because of the state liquor monopoly. The law provides that a share of the state - collected profits and taxes be returned to cities and towns to help defray the cost of policing liquor establishments. Liquor Board profits consist of the difference between revenue from state liquor City of Port Townsend stores, taxes on wine and beer, license fees, penalties and forfeitures and board expenditures. Except for monies from administrative fees and those attributable to Class H licenses, the profits are divided among the state, counties, cities, and towns. Cities and towns receive a 40 percent share. An additional amount is distributed to border area cities and towns. Cities and towns also receive 28 percent of the liquor excise tax receipts. To be eligible to receive liquor taxes and profits, a city or town must devote at least 2 percent of its distribution to support an approved alcoholism or drug addiction program. Utility Tax The City imposes a utility tax on telecommunications, electricity, and natural gas at the rate of 6 percent. The City also imposes a utility tax on city provided utilities. Beginning in April 2007, the utility tax rate on city provided utilities is 20% for water, sewer, storm and garbage utilities. Leasehold Excise Tax Most leases of publicly -owned real and personal property in the state are subject to a leasehold excise tax in lieu of a property tax. The State Legislature in 1976 established a 12 percent tax to be levied on the contract rent. In 1987, the State Legislature increased the rate to a total of 12.84 percent. Cities and counties may collectively levy up to 6 percent of the 12.84 percent. The maximum rate for cities is 4 percent and, if a city levies this amount, the county can levy only 2 percent on leaseholds in the incorporated areas. If a city chooses not to levy its maximum, the county captures the difference to the 6 percent lid. General Fund Revenues The City of Port Townsend imposes the leasehold excise tax at the rate of 4 percent. Doing so does not affect the rate that leaseholders must pay; it simply determines who receives the money. Traffic and Parking Fines Although the State Supreme Court establishes the schedule of fines for traffic infractions in the Washington Model Traffic Ordinance RCW Chapter 46.90, cities and towns share in the revenue for infractions committed within their boundaries. After the fines are collected, 35 percent is sent to the state. The remainder is deposited in the General Fund to pay for law enforcement services. Licenses, Permits & Fees The City collects license fees, building permit fees and miscellaneous user fees. Building Permit Fee Collections Year Amount 1996 $167,000 1997 $185,248 1998 $171,528 1999 $281,794 2000 $248,541 2001 $264,687 2002 $308,034 2003 $361,809 2004 $461,887 2005 $423,722 2006 $319,738 2007* $465,000 * = estimated City of Port Townsend 10 Fund Summary Fiscal Year 2007 1/01/2007 Estimated Fund Funds Balance Operating Funds 1/01/2008 2007 2007 Beginning Estimated Estimated Fund Revenues Appropriation Balance General Fund $ 297,084 $ 7,492,093 $ 7,241,853 $ 547,323 Public Works Admin & Engineering Fund 0 1,001,493 1,001,493 0 Library Fund 3,000 722,547 725,547 - Community Services Fund (0) 785,296 785,296 - Fire & EMS Services Fund - 1,183,500 1,183,500 - LID #1 35 - - 35 LID #2 20 - - 20 Drug Enforcement 66 - - 66 Contingency Fund 154,495 6,180 - 160,675 Street Fund 101,423 651,551 662,021 90,954 Lodging Tax Fund 158,753 331,350 359,850 130,253 Fire Equipment Joint Maintenance Fund 10,248 - 10,248 - CDBG Fund 35,943 11,438 40,000 7,381 Water Sewer Fund 4,612,192 4,819,814 5,504,733 3,927,273 Stormwater Fund 408,580 560,650 535,346 433,884 Equipment Rental Fund 854,115 857,974 1,443,561 268,529 Firemen's Pension Fund 294,582 90,194 80,679 304,097 Operating Fund Subtotals $ 6,930,536 $18,514,079 $ 19,574,126 $ 5,870,490 Capital, Debt, & Trust Funds Capital Improvement Fund 242,621 2,298,116 2,302,000 238,737 Capital Improvement Fund - City Hall Renovation 391,264 - 100,000 291,264 Capital Improvement Fund - Fire Station 795 80,000 80,000 795 SDC Fund 377,306 315,676 320,000 372,982 Transmission Line Replacement Fund 3,481,640 185,266 110,000 3,556,905 G.O. Debt Service Fund 51,704 649,409 642,124 58,989 78 Water Sewer Revenue Bond Fund 47,118 26,760 24,875 49,002 92/98 Water Sewer Revenue Bond Res. Fund 409,789 16,392 - 426,180 92 Water Sewer Revenue Bond Red. Fund 45,534 600,426 598,605 47,356 Utility Construction Fund 246,228 724,849 865,000 106,077 NW Maritime Center Agency Fund 3,028 - - 3,028 Golf Course Fund 6,000 26,000 22,000 10,000 Memorial Fund 20,176 807 - 20,983 Capital, Debt, & Trust Fund Subtotals $ 5,323,204 $ 4,923,701 $ 5,064,604 $ 5,182,300 Grand Totals $ 12,253,740 $23,437,780 $ 24,638,730 $ 11,052,790 Notes: 1. CDBG means Community Development Block Grant. 2. SDC means System Development Charge. 3. G.O. means general obligation. 4. LID means Local Improvement District. City of Port Townsend 11 General Fund Summary Budget Budget Contribution Estimated Estimated To Revenues Expenditures Fund Balance Estimated Beginning Fund Balance $ 297,084 General Fund Departments City Council $ 5,765,913 $ 124,255 $ 5,641,657 City Manager 0 217,251 - 217,251 City Attorney 0 328,058 - 328,058 City Clerk 6,500 217,389 - 210,889 Development Services- Projects 0 184,392 - 184,392 Development Services 513,950 733,953 - 220,003 Finance 714,038 306,101 407,936 Police Admin 82,435 559,594 - 477,159 Police Operations 329,307 1,842,100 - 1,512,792 Police Training 0 21,000 - 21,000 City Facilities 10,000 201,058 - 191,058 Public Restrooms 0 7,200 -7,200 Safety Committee 0 750 -750 Non - Departmental 0 85,535 - 85,535 PEG TV Department 69,950 69,583 367 Transfer -out Streets 0 0 0 Transfer -out Debt Service 0 171,000 - 171,000 Transfer -out Community Services 0 659,089 - 659,089 Transfer -out Library 0 712,547 - 712,547 Transfer -out Fire /EMS 0 801,000 - 801,000 $ 7,492,093 $ 7,241,853 $ 250,239 Estimated Ending Fund Balance $ 547,323 General Fund Balance Reserve % achieved 7.3% City of Port Townsend 12 General Fund Estimated Revenues General Fund Revenue Summary by Category Increase Estimated Revenues 2007 2006 (Decrease) Taxes Licenses & Permits Intergovernmental Charges for Services Fines & Forfeits Miscellaneous Receipts Operating Transfers -in $5,426,160 $5,084,338 $ 341,822 525,850 665,125 (139,275) 187,404 169,367 18,037 1,216,396 916,944 299,452 107,300 72,300 35,000 28,583 38,721 (10,138) - 5,257 (5,257) Totals $7,491,693 $6,952,052 $ 539,641 City of Port Townsend 13 General Fund Estimated Revenues General Fund Taxes by Category Property taxes $ 1,614,000 Retail sales taxes 1,747,872 Private utility taxes 617,454 Public utility taxes 685,301 Business & occupation taxes 617,883 Leasehold excise taxes 92,649 Cable franchise taxes 51,000 Total $ 5,426,160 General Fund Taxes by Category Leasehold excise taxes Cable franchise 2% taxes 1% Business & occupation taxes Property taxes 11% 30% Public utility taxes 13% Private utility taxes 11% Retail sales taxes 32% City of Port Townsend 14 General Fund Summary Category of Expenditure General Government $ 1,243,878 Economic Environment 1,231,646 Public Safety 2,422,694 Transfers: Library, Community Services, Debt & Fire /EMS 2,343,635 Total $ 7,241,853 Object of Expendidture Personnel costs $ 3,154,310 Operating costs 773,247 Intergovernmental costs 626,443 Capital Outlays 32,250 Interfund transfers out 2,343,635 Interfund payments for services 311,967 Total $ 7,241,853 City of Port Townsend 15 General Fund Summary General Fund Expenditures by Type Transfers: Library, Community Services, Debt & Fire /EMS 32% General Government 17% Public Safety 34% Economic Environment 17% General Fund Department Expenditures City Council City Manager 2% 3% City Attorney Transfer -out Fire /EMS 5% City Clerk 11% o Transfer -out Library 10% Transfer -out Community Services 9% Transfer -out Debt Service PEG TV DRVqartment 1% Non - Departmental 1% Safety Com m ittee 0% Public Restrooms 0% C Police Training Police Operations 0% 25% Facilities 3% evelo�fent Services Projects 3% Development Services 10% Finance 4% Police Admin 8% City of Port Townsend 16 General Fund Summary Interfund transfers out 32% Capital Outh 0% Intergovernmen 9% General Fund Object of Expendidture Interfund payments for services 4% Operating costs 11% Personnel costs 44% City of Port Townsend 17 Legislative The City Council is the legislative branch of the city government within the City of Port Townsend. Policy- making is one of the most important responsibilities of the City Council. The general powers and duties of this body are provided in the Revised Code of Washington Chapters 35A.11 & 35.21. As a comprehensive policy setting directive, the Council develops various master plans. These plans are the foundation for developing the annual final budget. These plans are also opportunities for citizens to have direct input into the major policies affecting the community. City master plans include the GMA Comprehensive Plan, Water Master Plan, Transportation Master Plan, Storm Master Plan (draft), Parks & Recreation Master Plan, Non - motorized Plan, Arterial Street Master Plan, Port Townsend Shoreline Master Plan, Wastewater Collection Plan, Bio Compost Marketing Plan, Library Development Plan, and the Capital Facilities Plan. In developing the master plans, the City Council holds public hearings to allow public input and testimony. This represents hundreds and hundreds of hours of testimony and debate. These master plans are comprehensive and provide fiscal guidance both in the annual budget and the long -term strategic budget development. After master plans are adopted by the Council, the City's department directors develop annual budget requests to implement the master plans. Each director develops budget requests for the City Manager to review. This process results in the City Council debate and passage of the final annual budget in December each year. In the year 2000, the City Council adopted three budget policies to guide the City toward financial stability. Budget Policy #1 - requires the City to maintain a General Fund, beginning fund balance, between 5% to 8% of available General Fund revenues. Budget Policy #2 - requires the City to set aside in a General Fund Council Reserve, 1% of available General Fund revenues. Budget Policy #3 - requires the City to set aside in a Contingency Fund 2% of estimated General Fund revenues. The City Manager established a process to achieve the Council budget policies. This budget has achieved those goals. City of Port Townsend 18 Legislative Revenues By Program Taxes Licenses & permits Intergovernmental Revenues Charges for Services Fines and Forfeits Miscellaneous Receipts Equity transfers in Less: revenue provided to departments Total Estimated Revenues Expenditures By Program Legislative Services Total Expenditures Expenditures by Object Personnel Operating Expenditures Capital Outlay Total Expenditures Performance Measures: Budget Budget Year Year Increase 2007 2006 <Decrease> $ 4,623,445 $ 4,482,523 $ 140,922 6,000 26,000 (20,000) 250 250 - 1,057,968 775,664 282,304 78,250 32,828 45,422 (5,641,657) (5,255,372) (386,285) Note 1 $ 124,255 $ 61,893 $ 62,362 $ 124,255 $ 61,893 $ 62,362 $ 124,255 $ 61,893 $ 62,362 $ 48,864 $ 48,532 $ 332 75,391 13,361 62,030 $ 124,255 $ 61,893 $ 62,362 Ending General Fund Balance 6.31% (Policy amount needed = 5% to 8 %) General Fund Balance - City Council Amount Reserved 1.00 %' (Policy amount needed = 1 %) General Fund Balance -total Ending Fund Balance 7.31% Contingency Fund Balance as a percent of General Fund Estimated Revenues (Policy amount needed = 2 %) Notes: 1. these revenues are collected to provide City services through all General Fund departments, ncluding Fund Equity Transactions. City of Port Townsend 19 City Manager City of Port Townsend 20 City Manager The City Manager is the Chief Executive and Administrative Officer, and as such, is responsible for carrying out the policies of the Council. The City Manager's department includes the City Manager and a confidential receptionist. This department provides over -all administration of the city's affairs. This includes enacting the policies and officially representing the city for the public and other governmental entities. Revenues By Program Executive - General Fund Support Expenditures By Program Safety Committee Administrative Services Total Expenditures Expenditures by Object Personnel Operating Expenditures Capital Outlay Total Expenditures Mission Statement: The administration's mission is to equitably carry out the legislative goals, policies, and programs of the City of Port Townsend within an atmosphere of mutual trust and respect. Budget Budget Year Year Increase 2007 2006 <Decrease> $ 218,001 $ 208,839 $ 9,162 $ 750 $ 750 $ - 217,251 208,089 9,162 $ 218,001 $ 208,839 $ 9,162 $198,740 $191,747 17,261 15,342 2,000 1,750 $ 218,001 $ 208,839 $ 6,993 1,919 250 $ 9,162 City of Port Townsend 21 City Attorney City of Port Townsend 22 City Attorney Functions Provides legal advice /representation for all City Departments, officials, and employees, including civil litigation; City ordinance violation; drafting and reviewing ordinances, resolutions, agreements, contracts, and other City - related real estate and legal documents. Department Mission, Goals and Objectives: The City Attorney's Office provides legal services in a fair, efficient and effective manner. We provide legal advice, opinions and representation to the City Manager, City Council, and staff on a broad range of matters: • General civil litigation • Law enforcement/prosecution • Labor law, employment, personnel issues • Land use /environmental issues • Risk management • Utility and water law • Contract drafting and negotiation Real estate transactions Risk Management Priority and Litigation Response. The City Attorney's Office prioritizes aggressive and prompt response to lawsuits, and focuses on early pre - litigation involvement and intervention, thereby minimizing the City's litigation exposure and limiting our dependence on outside legal counsel. Good risk management, active legal consultation with City Departments and the City Council, open channels of communication with citizens, and early legal intervention reduce the risk of litigation and limit our taxpayers' exposure to the financial liabilities associated with lawsuits against the City. Year 2007 Goals • Continue providing legal perspective and assistance to City Council, all City Departments, City Boards and Commissions • Draft and /or review all City ordinances, resolutions • Draft and /or review all City agreements, contracts, leases, and real estate transactions • Review pending legislation of State Legislature and forward opinion /comments • Review and present policy alternatives and proposed solutions to any identified issues, and recommend ordinance amendments, as necessary, in the following areas: (1) Shoreline Management Act (SMA) amendments to comply with State Department of Ecology (DOE) mandates; (2) State Environmental Policy Act (SEPA); (3) Right -of -way /street use agreements, including vegetation management and telecommunication issues; (4) Temporary special event ordinance and procedures; (5) Permitting and approvals under City regulatory framework, to ensure provisions in various regulations (land use, SMA, critical areas) are clear and consistent; (6) Historic preservation and demolition regulations; (7) Essential public facilities regulations; (8) Personnel policies, and contract and code provisions relating to personnel; (9) Protection of City's domestic water resource; (10) Surplus property issues. City of Port Townsend 23 City Attorney Performance Measures City Attorney functions do not readily lend themselves to quantitative performance measures. Specific numbers of ordinances, lawsuits, hearings, legal opinions, contracts or other indicators do not measure time spent on or Revenues By Program Legal Services - General Fund Support Expenditures By Program Muncipal Court Administration Legal Services Total Expenditures Expenditures by Object Personnel Operating Expenditures Intergovernmental Services Capital Outlay Total Expenditures Note 1 the complexity of a matter Budget Budget Year Year Increase 2007 2006 <Decrease> $ 328,058 $ 303,658 $ 24,400 $110,000 $ 94,261 $ 15,739 Note 1 218,058 209,397 8,661 $ 328,058 $ 303,658 $ 24,400 $174,049 $164,044 $ 10,005 44,009 43,853 156 110,000 94,261 15,739 - 1,500 (1,500) $ 328,058 $ 303,658 $ 24,400 Starting in 2006, the costs for Municipal Court are administered through an interlocal -ontract with Jefferson County in the City Attorney's budget center. City of Port Townsend 24 City Clerk Function The office of the City Clerk serves as custodian of the city's legislative history Activities include maintenance of council minutes and other permanent city records, production of agendas and minutes for council and committee meetings, publishing required legal notices and all meeting notices required by the Open Public Meetings Act. Public information requests are processed and monitored to assure compliance with the state public records disclosure act. The city's web site was designed and established and is maintained by the clerk's office. The clerk also assists the City Manager in risk management and personnel issues. City of Port Townsend 25 City Clerk Mission Statement The mission of the City Clerk's office is to create, maintain, preserve and provide access to the city's legislative and administrative record. Accomplishments 2006 Provided agendas, packets, and minutes for all council meetings and committee meetings. Used grant funding to provide shelving; moved records to new records room and off -site storage unit. Worked with IT to completely revamp City website. Coordinated all appointments to advisory boards and commissions. Updated policy, procedure and forms for public records disclosure to reflect new legislation. Goals and Objectives 2007 Expand use of electronic records management system; integrate electronic imaging and other systems with web site to provide greater direct access for information to public. Establish public station for access to electronic records. Continue archiving historic records and maintaining records according to state retention schedule. Conduct Civil Service hiring process for new and replacement Police staff positions. Finalize and implement updated personnel policies. Review municipal code to identify outdated references and inconsistencies. Performance Measures Indicator 2004 2005 2006 2007 Clerk 1 1 1 est Meetings 1 1 1 1 staffed 85 116 115 115 Civil 1 2 1 2 1 2 1 2 Service 5 1 2 3 Testing Agenda 228 212 135 140 Bills Council 2400 2286 1,700 1,700 Corres . Staffing FTE Position 2003 2004 2005 2006 Clerk 1 1 1 1 Deputy 1 1 1 1 Intern 0 0 0 Total 1 2 1 2 1 2 1 2 City of Port Townsend 26 City Clerk Revenues By Program General Fund support Archive Fees Grants Total Revenues Expenditures By Program City Clerk Services Total Expenditures Expenditures by Object Personnel Operting Expenditures Capital Outlay Total Expenditures Percent of coverage of expenditures by revenues Budget Budget Year Year Increase 2007 2006 <Decrease> $ 210,889 $ 208,657 $ 2,232 6,500 7,500 (1,000) $ 217,389 $ 216,157 $ 1,232 $ 217,389 $ 216,157 $ 1,232 $ 217,389 $ 216,157 $ 1,232 $161,278 $152,062 $ 9,216 56,111 61,695 (5,584) - 2,400 (2,400) $ 217,389 $ 216,157 $ 1,232 2.99% 3.47% -0.48% City of Port Townsend 27 Department of Development Services I City Manager Long Range Planning I Director Development Services Director Administration and Land Use Public Customer Services Permitting Rights -of -Way Counter I I Permitting Administrative Land Use Public Works Assistant(s) Specialist I Development Review Specialist I Permit Center Land Use Public Works Coordinator Specialist II Development Review Specialist II Permit Technician Building Official Building Permitting Building Inspector/ Plans Examiner I Building Inspector/ Plans Examiner II City of Port Townsend 28 Department of Development Services Function Descriptions: DSD Director: Manages the department, sets goals and priorities for land use permitting, public rights -of -way permitting, and building permitting divisions. Oversees work product of these divisions. Manages the permit center, which is a one -stop counter where the public may conduct all their business and receive information regarding development projects. Building Permitting Division: Intakes and process building permit applications. Assists the public with understanding applicable codes and regulations. Coordinates the issuance of building permits with other city permits and licenses. Enforces the City's municipal code in regards to building, land use, shoreline codes, and nuisance issues. Land Use Permitting Division: Intakes and process land use, shoreline, and design review applications. Coordinates the issuance of these permits with other city permits and licenses. Responsible for code updates and amendments including state mandated and council directed code amendments. Coordinates with county staff regarding issues that affects both jurisdictions. Public Rights -of -Way Permitting Division: Intakes and process building permit applications related to city rights -of -way and utilities. Assists the public with understanding applicable codes and regulations. Coordinates the issuance of building permits with other city permits and licenses. Administration: Supports the director and all DSD staff with their work functions. City of Port Townsend 29 Department of Development Services Planning Services Mission Statement: Assist the community in their consideration of alternative future directions and implementation of policies in regards to the long -term development of the city. In addition, facilitate all long -range land use planning activities, including, but not limited to, those relating to comprehensive planning, shoreline master planning and critical area regulation. Value Statements: • Serve the public interest as it has been identified through continuous and open community discussion. • Provide timely, adequate, clear and accurate information on planning issues to all affected persons and to governmental decision makers. • Ensure that community members have a meaningful impact on the development of plans and programs that may affect them. • Promote excellence of design and endeavor to preserve and enhance the integrity and heritage of the natural and built environment. • Strive for a high standard of professional integrity, proficiency and knowledge. Strategic Goals & Objectives for 2007 Goals: • Ensure that identified community initiatives are facilitated in an effective, economically viable and timely manner. • Ensure that community involvement in developing long -range planning goals and implementing planning initiatives is focused and meaningful. • Ensure implementation of community goals through the development of appropriate regulations. Objectives: • Adoption of the Shoreline Master Program (SMP) and corollary implementing regulations. • Facilitate the development of the Upper Sims Way / Howard Street Strategy and Implementation Plan. • Facilitate the development of the North Downtown Historic Streetscape Design Concept Plan inclusive of a long- term reuse strategy for the Jackson Bequest area. • Facilitate the Uptown Charette process to address issues associated with long -term development in the Uptown commercial district. Facilitate the public and environmental review process for the City's Comprehensive Water System Plan. Facilitate the public and environmental review process for the City's Transportation Plan. • Prepare revisions to the Port Townsend Municipal Code for consideration by Planning Commission, Council and the Community. Focus area for proposed revision will be: Critical Area regulations, Sign Code standards and Tree Conservation requirements. • Facilitate the Mid -Cycle review process for the Comprehensive Plan. • Facilitate the implementation of the Housing Action Plan. • Assist Development Services permitting function on a project-specific basis. City of Port Townsend 30 Department of Development Services Revenues By Proaram General Fund support Permits Zoning Fees Planning Services Misc Revenues Intergovernmental Total Revenues Expenditures By Program Building & Planning Services Special Projects Total Expenditures Expenditures by Obiect Personnel Operating Expenditures Capital Outlay Total Expenditures Percent coverage of expenditures by revenues Budget Budget Year Year Increase 2007 2006 <Decrease> $ 404,394 $ 85,909 $ 318,485 465,000 582,200 (117,200) 43,750 22,400 21,350 2,000 13,204 (11,204) 3,200 4,500 (1,300) - 50,500 (50,500) $ 918,344 $ 758,713 $ 159,631 $ 733,953 $ 646,010 $ 87,943 184,392 112,703 71,689 $ 918,344 $ 758,713 $ 159,631 $ 783,605 $ 636,200 $ 147,405 134,740 120,013 14,727 - 2,500 (2,500) $ 918,344 $ 758,713 $ 159,631 55.96% 88.68% -32.71% City of Port Townsend 31 Police Department City of Port Townsend 32 Police Department MISSION STATEMENT The Police Department's mission is to build a partnership with the community by providing accountable, effective, and professional police services based upon mutual trust and respect. MAJOR PROGRAM SERVICES The Department is currently organized into three divisions: 1) Administration & Support Services 2) Patrol and 3) Investigations. ADMINISTRATION Consists of the Chief of Police who provides the overall management and direction, planning, budgeting, scheduling, inspections, and training for the Department. SUPPORT SERVICES Consists of a Police Administrative Supervisor/Evidence Technician and two Police Clerks. Support Services handles telephone and personal requests for service from the public; processes and maintains all reports generated by Police Department Officers and staff, performs data entry in department database and regional /national law enforcement telecommunications systems; conducts background checks on arrested persons, processes all citations, and prepares all report packages for dissemination; produces mandated State and Federal statistical reports. The Evidence Technician is responsible for the records management, maintenance, and security of the Police Department's evidence /property room. (PTPD contracts with Jefferson County for Jail and Dispatch services.) PATROL Currently consists of two uniformed sergeants and nine uniformed officers. The Patrol Division is the `backbone' of the police operation. This program provides 24- hour -a -day, seven - days -a -week law enforcement coverage. The officers perform all facets of law enforcement, including responding to emergency situations and service calls. Other primary responsibilities are ensuring safety and protection of persons and property through proactive and directed patrol, conducting criminal investigations, collecting evidence, recovering lost or stolen property, and apprehending violators. Patrol also facilitates the safe, expeditious movement of vehicle, bicycle, and pedestrian traffic, and renders services of problem solving and community oriented policing to promote the peace and enhance the quality of life for residents and visitors. Included in the Patrol Division is the School Resource Officer (SRO). The SRO provides a direct law enforcement and community- policing function within the Port Townsend Schools. The Citizen Volunteer Program is coordinated and overseen by a Retired California Police Officer. INVESTIGATIONS The Investigations Division, (currently consisting of one officer), conducts professional and comprehensive follow -up investigations of reported major crimes and manages self - initiated investigations, criminal intelligence gathering, and crime trend analysis. The Investigations Division enhances contact with victims of major crimes and maintains an effective relationship with the Prosecutor, Courts, and other local, state, and national law enforcement agencies. 2007 GOALS AND OBJECTIVES • Enhance training for every officer in the area of Financial Crimes, Identity Theft, Computer and other Hi -Tech Crimes. • Implement a plan to increase cooperation and working relationships with other agencies and entities to combat the damaging effects of methamphetamine abuse. City of Port Townsend 33 Police Department Expenditures By Proaram Administration Budget Budget (1,410) Operations Year Year Increase Training 2007 2006 <Decrease> Revenues By Program $ 2,422,694 $1,975,511 $ 447,183 General Fund support $ 2,010,951 $1,688,144 $ 322,807 Court Appointed Inmate fees - 24,000 (24,000) Fines 107,300 72,300 35,000 Grants 10,105 6,901 3,204 Law enforcement services 51,807 18,000 33,807 Retail Sales Taxes - Criminal Justice 117,912 115,600 2,312 Public Utility Taxes - Water, Sewer,Storm, Garbage 71,557 - 71,557 Criminal Justice Taxes 10,060 9,916 144 Liquor Excise Taxes 37,661 35,750 1,911 Motor Vehicle Taxes 1,940 1,500 440 Miscellaneous 3,400 3,400 - Total Revenues $2,422,694 $1,975,511 $ 447,183 Expenditures By Proaram Administration $ 559,594 $ 561,004 $ (1,410) Operations 1,842,100 1,399,507 442,593 Note 1 Training 21,000 15,000 6,000 Total Expenditures $ 2,422,694 $1,975,511 $ 447,183 Expenditures by Obiect Personnel $1,461,137 $1,240,893 $ 220,244 Supplies 956,557 724,620 231,937 Capital Outlay 5,000 9,998 (4,998) Total Expenditures $ 2,422,694 $1,975,511 $ 447,183 Percent of coverage of expenditures by revenues 17.00% 12.65% 4.35% Note 1 In 2006, interlocal contracts with Jefferson County for services were relocated in the Police Department from the city contracts cost center for monitoring and control: Animal control services Jail services Dispatch services City of Port Townsend 34 Finance Department City Manager Finance Director Deputy I I Information Technology Finance Director Administrator Customer Services Utility Billing and B &O Taxes Clerk Utility Billing and B &O Taxes Clerk Accounting & I Treasury Accounting Assistant Accounts Payable Payroll/ Benefits Administrator Grants & Contract Compliance Specialist City of Port Townsend 35 Finance Department The Finance Department provides a variety of financial services for the City, which includes: • Cashiering services; • Cash and investment portfolio management; • Debt management; • Budget preparation and administration; • Annual financial report preparation; • Business license issuance and monitoring; • Business and Occupation Tax reporting; • Grant revenue and expenditure reporting; • Parking citation receipts; • Local Improvement District assessment collections; • Utility billing for water, sewer, and storm; • Payroll and employee benefits; • Federal and state payroll tax reporting; • Accounts payable and audit of vendor claims; • Project management reporting; • Computer systems technology; and • Monthly and annual financial reporting of all revenues and expenditures. Departmental Mission: The Finance mission is to manage and optimize the city's finances and provide professional, knowledgeable and courteous customer service. 2006 Accomplishments • Successfully completed the annual audit by the State Auditor; • Assisted Public Works with Fire Hall and City Hall construction project accounting; • Implemented new information technology division; and • Completed cost of service analysis for water /sewer fund utilities. 2007 Goals and Objectives In 2007, we will be closing out two large capital projects — fire hall and city hall. These closures will require final close out accounting and reporting for project costs. In the later part of 2006, the city contracted with East Jefferson County Fire Rescue for Fire /EMS services. As a result of the transfer of fire personnel and equipment to East Jefferson County Fire Rescue, the city initiated a study of the equipment rental fund. The consultant will review equipment usage, fund reserves and finalize a study of the rental rates that shall be charged to various city departments for use of city heavy equipment and computer systems. 2007 will be the second year of operations of the city's new information technology division. The city will be in a position to improve information made available on the city web page. As financial constraints continue to erode the city's reserves, more active efforts will be needed to manage the city's daily cash flow and investments. Improved monitoring systems maybe necessary for maximizing investment income. Goal: Close out the project accounting for the City Hall Annex and New Fire Station. Prepare final accounting for City Hall Project; Prepare final accounting for New Fire Station Project; Prepare close out for grantors for new Fire Station Project. Goal: Implement new equipment rental rate study for city departments. • Adjust as necessary rental charges to user departments; and City of Port Townsend 36 Finance Department • Update equipment inventories for all city departments. Goal: Continue to enhance information availability on the city web page. • Budget document on -line availability; • Annual audit reports on -line availability; • Utility customer service information; and • Utility payments via credit cards, ACH automatic debit, and Internet payments. Goal: Continue to improve financial reporting of the city's revenues, expenditures, and financial condition. • Strive for excellence in both budgeting Revenues By Program B &O tax collections Business & Other Licenses Interfund Services Investment income Total Revenues Expenditures By Program City Financial Services Total Expenditures Expenditures by Object Personnel Operating Expenditures Capital Outlay Total Expenditures Percent coverage of expenditures by revenues and financial reporting; and • Continue to improve financial reporting of the city's revenues, expenditures, and financial condition. Goal: Develop active cash management systems to enable improved investment income from city assets. • Develop a daily cash management system that will permit monitoring of daily cash flow and investments to be actively managed; and • Implement cash management system that will allow investment earnings to be maximized in accordance with state municipal investment laws. Budget Budget Year Year Increase 2007 2006 <Decrease> $ 617,883 $ 500,000 $ 117,883 46,000 46,000 - 38,271 35,176 3,095 11,883 - 11,883 $ 714,038 $ 581,176 $ 132,862 $ 306,101 $ 306,101 $ 247,838 55,513 2,750 $ 306,101 $ 293,209 $ 12,892 $ 293,209 $ 12,892 $ 233,041 $ 14,797 57,418 (1,905) 2,750 - $ 293,209 $ 12,892 233.27% 198.21% 35.06% City of Port Townsend 37 Facilities Maintenance Department Mission Statement: The mission of the Facilities Maintenance Division is to operate and maintain the city owned buildings and public restrooms. This work is accomplished with one Maintenance Worker and a janitorial contract that is administered by the Water Department Operations Manager and supervised by the Fleet/Facilities Crew Chief. The Crew Chief also performs or coordinates minor building repairs and modifications. In 2007, we will continue efforts to expand completion of deferred maintenance of existing facilities to include City Hall, Pope Marine Building, and Parks facilities. We will also be renewing the janitorial contract for City -owned facilities. Budget Budget Year Year Increase 2007 2006 <Decrease> Revenues By Proaram General Fund support $198,258 $122,364 Interfund maintenance charges- Lodging Tax Fund 10,000 10,000 Custodial Services - 6,500 Total Revenues $208,258 $138,864 Expenditures By Program Public Restrooms $ 7,200 $ 6,000 City Hall and Facilities 201,058 132,864 Total Expenditures $ 208,258 $138,864 Expenditures by Obiect Personnel Operating Expenditures Capital Outlay Total Expenditures Percent of coverage of expenditures by revenues $ 75,199 $ 71,812 132,059 66,052 1,000 1,000 $ 208,258 $138,864 4.80% 11.88% $ 75,894 (6,500) $ 69,394 $ 1,200 68,194 $ 69,394 $ 3,387 66,007 $ 69,394 -7.08% City of Port Townsend 38 PEG Access TV Studio Mission Statement The mission of the Public, Educational and Governmental (PEG) Access Studio is community through communication. Summary The PEG Access Studio fund supports the operation of PTTV Channels 47 (public) and 48 (government and educational) for non - commercial public, educational and governmental programming. Studio space is provided by Port Townsend School District No. 50. The studio is currently staffed by a station manager, a contractual employee. Major capital equipment has been purchased or leased which will serve the basic needs of users for the next few years. The PEG Access Coordinating Committee provides policy recommendations regarding the studio. PEG funding also provides for televising of City Council and other government meetings and programs not produced in the studio. Accomplishments Increased PT High School sports coverage. Reviewed feasibility of public arm of the channel established as a non - profit. Established new fee schedule. Goals and Objectives Continue complying with Council directives regarding examination of: (3) responsibilities of stakeholders and station personnel and partners of the station; (4) improving and clarifying the 2001 interlocal agreement; (5) allocation of resources among public, educational and governmental programming (6) methods for providing accountability for the allocation of resources Program Indicators Indicator 2002 2003 2004 2005 2006 Public 40 31 20 28 21 Members Indiv/Fam Public 22 12 14 16 12 Members Or Ed/Gov. 1 1 0 3 Or s Trainings 16 10 9 Households 2,097 1,927 1,740 1,600 1,540 served (City) City of Port Townsend 39 PEG Access TV Studio Revenues General Fund support Utility Tax- TV Cable Franchise Fee TV Public Access Fee Program Fees Total Revenue Expenditures Operating Expenditures Capital Outlay Personnel Total Expenditures Program Revenues in Excess of Expenditures Percent coverage of expenditures by revenues Budget Budget Year Year Increase 2007 2006 <Decrease> 51,000 51,015 (15) 8,850 10,925 (2,075) 10,100 7,500 2,600 $ 69,950 $ 69,440 $ 510 $ 48,083 $ 57,914 $ (9,831) 21,500 10,925 10,575 $ 69,583 $ 68,839 $ 744 S 367 L 601 s (234) 100.0% 100.0% 0.0% City of Port Townsend 40 Non - Departmental The General Fund cost center "Non - Departmental" is where costs, which are not directly assigned to an existing General Fund department, are summarized. In previous years, costs for contracted services to Jefferson County were listed here. In 2006, the city assigned the county services to specific city departments to manage. The expenditures Revenues By Program General Fund support Grants - Interagency for Outdoor Recreation Total Revenues Expenditures By Proaram remaining are for benefit reserves, and other state agency charges. Budget Budget Year Year Increase 2007 2006 <Decrease> $ 85,535 $ 108,000 $ (22,465) $ 85,535 $ 573,509 $ (22,465) Intergovernmental Services 3,935 $ 7,000 $ (3,065) Note 1 Reserve (medical benefits, garbage utility retiree) 81,600 101,000 (19,400) Total Expenditures $ 85,535 $ 108,000 $ (22,465) Expenditures by Object Intergovernmental Services - Jefferson County contract $ - $ - $ - Note 1 Operating Expenditures 85,535 108,000 (22,465) Total Expenditures $ 85,535 $ 108,000 $ (22,465) Percent of coverage of expenditures by revenues 0.00% 0.00% 0.00% Note 1 n 2005, these services included the cost of contract services provided by Jefferson County: District Dourt, Dispatch, Alcohol and Drug Abuse, Animal Control, and Computer Network Support. Starting n 2006, the interlocal contract costs were reassigned to various city departments to monitor and administer as part of their department budgets. City of Port Townsend 41 Fund Equity and Transactions This budget summary was developed to assist the City Council with monitoring the General Fund beginning fund balance amounts. Also, this budget summary enables the Council to provide policy guidance for budgeting a Council General Fund reserve amount in accordance with City Council policy. This cost center is where all General Fund transfers out to other city funds shall be recorded. This budgetary Ending General Fund Balance City Council Reserved Fund Balance - (1 %) Unreserved Fund Balance Total Ending Fund Balance Other Financing Uses Interfund Subsidies Interfund Subsidies Interfund Subsidies Interfund Subsidies Interfund Subsidies Total Other Financ provision allows the City Council and citizens to more clearly see when budgetary transfers are to occur, and where those transfers went. Finally, this summary provides the totals for the General Fund, ending fund balance as projected in the budget development. - Transfer out to Bond 2005 Fund - Transfers -Out to Street Fund - Transfers -Out to Emergency Services Fund - Transfers -Out to Library Fund - Transfers -Out to Community Services Fund :ing Uses Total Fund Equity and Other Financing Uses Notes: Budget Budget Year Year Increase 2007 2006 <Decrease> $ 74,921 $ 69,521 $ 5,400 see Note 1 472,402 707,124 (234,722) $ 547,323 $ 776,645 $ (229,322) $ 171,000 $ 171,000 $ - - 200,000 (200,000) 801,000 780,000 21,000 712,547 675,168 37,379 659,089 627,287 31,802 $ 2,343,635 $ 2,453,455 $ (109,820) $2,890,959 $3,230,100 $ (339,141) Beginning in year 2000, the City Council established a financial policy requiring a reserve in the General Fund equal to 1 % of General Fund revenues. The reserve may only be spent by Council authorization through a supplemental budget. City of Port Townsend 42 Special Revenue Funds Special revenue fund types are used to account for the proceeds of specific revenue sources (other than expendable trusts or for major capital projects) that are legally restricted to expenditure for specified purposes. The city presently has eleven special revenue funds: • Drug Enforcement and Education Fund • Contingency Fund • Fire Equipment Joint Maintenance Fund • Community Development Block Grant Fund • Lodging Tax Fund • System Development Charge Fund • Library Fund • Fire and EMS Services Fund • Public Works Administration and Engineering Fund • Community Services Fund • Street Fund Drug Enforcement & Education Fund The Drug Enforcement and Education Fund receives all monies and proceeds of the sale of property seized during drug investigations and forfeitures pursuant to RCW 69.50.050. The monies received shall be used solely for the purposes of drug enforcement, drug awareness education, and the purchase, lease and maintenance of equipment and other items necessary for drug enforcement. There is no staff assigned to operate this fund. It is used primarily to account for earmarked monies. Contingency Fund Beginning in 2000, the City Council authorized a contingency fund to accumulate resources from the general property tax levy for future unforeseen needs and emergencies. The policy adopted by the City Council seeks to set aside up to 2% of General Fund revenues as a contingency reserve. This reserve may only be used by an appropriation of the City Council. State law (RCW 35A.33.145) authorizes this fund and limits the reserve level to a maximum of $ 0.375 per thousand dollars of assessed valuation of property within the city. There are no staff assigned to operate this fund. It is used primarily to account for earmarked monies. Community Development Block Grant Fund This fund accounts for the federal community development block grant (CDBG) program that provided federal aid to stimulate local development. The CDBG program provided housing and economic development grants. The federal program has long since closed, but loan repayments are deposited into this fund and become program income to the program in accordance with federal regulations. This process, in effect, recycles the original federal grant on a continual basis enabling other qualified applicants to have access to the federal program. Lodging Tax Fund A lodging tax is imposed upon recommendation of the city's Lodging Tax Advisory Committee, in accordance with Port Townsend Municipal Code Title 3, Chapter 3.20. All such taxes collected in this fund are for the purpose of paying all or part of the cost of tourism promotion, acquisition of tourism, related facilities, operation and maintenance of tourism, and for such other purposes as authorized in RCW Chapter 67.28. Lodging tax funds may be used to pay for any engineering, planning, financial, legal and professional services incident to the development and operation of tourism - related facilities, to secure the payment of all or any portion of general City of Port Townsend 43 Special Revenue Funds obligation bonds or revenue bonds issued for such purpose as specified. The sole source of revenue is the lodging tax This tax is derived by taking 2 percent of the state's 6.5 percent sales tax and rebating it back to the community for local programs to promote and accommodate tourism. On October 5, 1998, the City Council passed Ordinance 2663 authorizing an imposition of an additional "special" 2% excise tax. This special 2% excise tax was effective starting February 1, 1999. This results in a combined lodging tax of 4 %. Fire Equipment Joint Maintenance Fund On August 8, 2000, the city entered into an interlocal agreement with various Jefferson County Fire Districts to operate and maintain a self - contained breathing air filling compressor and appurtenances. This agreement provides for the collection of fees from all parties to support the operating costs of this unit in a segregated fund. System Development Charge Fund The System Development Charge (SDC) Fund was created as authorized by Ordinance 2666 in November 1998. Pursuant to Chapter 13.03 PTMC, the City has determined that it is reasonable and in the public interest to collect water and wastewater system development charges for the purpose of recovering a proportionate share of the actual and projected costs of water and wastewater facilities from those properties which, as a part of their development and use, create the need for those facilities. The SDC Fund was created to account for system development charges assessed by the city's water and wastewater utilities to property developers. Also, this fund is used to account for deferrals of system development charges for selected low - income housing projects. Those projects selected for deferral of SDC's shall be accounted for in a special account as authorized by the City Council. Authorized deferrals of SDC charges shall be paid by a contribution from the city's General Fund with a transfer of monies to the System Development Low - Income Deferral Account. As cities nationwide face increased costs for expanding and upgrading water and wastewater (sewer) facilities, they are looking for ways to charge the costs equitably among the utility customers who are receiving the benefits. Port Townsend is one of many cities challenged with funding the most costly capital projects in its history. State and federal regulations are forcing the city to construct expensive improvements to existing water and wastewater systems. When new facilities are constructed, excess capacity for future growth must be included to avoid frequent costly future expansions. Historically, as new growth occurs, the existing ratepayers have subsidized these expenses. Now, as in many other communities, the City of Port Townsend has decided to more fairly charge those who are benefiting directly, by establishing System Development Charges, or SDCs. With SCDs (also known as Impact Fees for certain services), those responsible for growth pay a more realistic proportion of the costs associated with growth. State law requires that SDCs collected be placed in a dedicated fund for use only on construction projects that are being oversized to accommodate growth. The law further states that all money be spent within five years. If it is not spent on appropriate projects within this time frame, the city is required to refund the money collected. Collections can City of Port Townsend 44 Special Revenue Funds also be used to pay for extra capacity in already constructed facilities. In essence, they help pay the debt service for those projects. In Port Townsend's case, water SDC revenue is being spent on pipeline improvements, including property purchases, which have been mandated by the State Department of Health. Wastewater SDC revenue will pay for the final stages of the wastewater treatment plant project. These fees will pay only for the excess capacity portion, offsetting debt service payments for these projects. State law authorizes establishment of SDCs for water, wastewater and storm drainage. Impact Fees are also allowed for streets, parks, fire and schools. The citizen Impact Fee Advisory Committee originally recommended adoption of SDC /Impact Fees for all of these services except fire. Currently, only the water and wastewater recommendations have been adopted. Library Fund Starting in 2005, a new accounting fund was created for the operation of the city library with enabling city Ordinance No. 2889. In prior years the library was part of the city's general fund. Detail budget information follows. Fire and EMS Services Fund Starting in 2005, a new accounting fund was created for the operation of the city fire department with enabling city Ordinance No. 2889. In prior years the fire department was part of the city's general fund. Detail budget information follows. Public Works and Engineering Fund Starting in 2005, a new accounting fund was created for the operation of the city public works administration and engineering services with enabling city Ordinance No. 2889. In prior years the public works administration and engineering services was part of the city's general fund. Detail budget information follows. Community Services Fund Starting in 2005, a new accounting fund was created for the operation of city community services (parks maintenance, pool, recreation, and domestic violence programs) with enabling city Ordinance No. 2889. In prior years these services were included in various city general fund departments. This new fund includes funding for other city services contract providers. They include Domestic Violence for $30,000, Boiler Room for $4,000, UGN for $4,555, Main Street for $30,000, YMCA for $91,350, and Arts Commission for $11,050. Detail budget information follows. Street Fund The street fund is responsible for the administration and maintenance of the city's transportation network, which includes approximately 74 miles of public roadways together with roadside improvements, sidewalks, bicycle facilities, signalization and illumination systems. The duties associated with this responsibility include: • Street sweeping • Roadside vegetation management and mowing • Landscape maintenance • Pavement and shoulder repair • Pavement markings • Snow and ice control • Traffic signal and illumination system maintenance City of Port Townsend 45 Special Revenue Funds • Signage • Traffic counts • Transportation planning • Street tree maintenance The street fund receives revenues from state distributions of motor vehicle fuel taxes for two programs: city streets and arterial streets. State law restricts these revenues: • City streets: to be used for any street purposes (RCW 46.68.070.110, 47.24.040 and 35.76 RCW) • Arterial streets: to be used for highways and arterial streets. For cities with populations less than 15,000, cities may use these monies for the maintenance of arterial highways and city streets (RCW 46.68.070). The city consolidated its Arterial Street Fund into the Street Fund in 2000 as allowed by RCW 46.68.070 for cities with populations less than 15,000. These state distributions are not sufficient resources to maintain city streets. The city's general fund provides subsidies in order for the street fund to operate. Detail budget information follows. City of Port Townsend 46 Special Revenue Funds Drug Enforcement and Education Fund Revenues Investment Interest Expenditures Supplies Capital Estimated Beginning Fund Balance Increase <Decrease> in Fund Balance Estimated Ending Fund Balance Revenues Property Tax Investment Interest Total Revenues Expenditures Budget Budget Year Year Increase 2007 2006 <Decrease> Contingency Fund Budget Year 2007 Estimated Beginning Fund Balance Increase <Decrease> in Fund Balance Estimated Ending Fund Balance Budget Year Increase 2006 <Decrease> $ 6,180 $ 3,001 3,179 $ 65 $ 65 $ - $ 65 $ 65 $ - Contingency Fund Budget Year 2007 Estimated Beginning Fund Balance Increase <Decrease> in Fund Balance Estimated Ending Fund Balance Budget Year Increase 2006 <Decrease> City of Port Townsend 47 $ 6,180 $ 3,001 3,179 $ 6,180 $ 3,001 $ 3,179 $ 154,495 $ 150,046 $ 4,449 6,180 3,001 3,179 $ 160,675 $ 153,047 $ 7,628 City of Port Townsend 47 Special Revenue Funds Community Development Block Grant Fund Budget Budget Year Year Increase 2007 2006 <Decrease> Revenues Program Income $ 10,000 $ 5,000 $ 5,000 Investment Interest Income 1,438 1,214 224 Total Revenues $ 11,438 $ 6,214 $ 5,224 Expenditures Community Development Loans Total Expenditures Estimated Beginning Fund Balance Increase <Decrease> in Fund Balance Estimated Ending Fund Balance $ 40,000 $ 60,000 $ (20,000) $ - 10,248 $ 10,248 $ 40,000 $ 60,000 $ (20,000) $ 10,248 $ 13,932 $ (3,684) $ 35,943 $ 65,243 $ (29,300) (28,562) (53,786) 25,224 $ 7,381 $ 11,457 $ (4,076) Fire Eauinment Joint Maintenance Fund Budget Budget Year Year Increase 2007 2006 <Decrease> Revenues Intergovernmental Revenues - Fire Districts $ - $ - $ - Equipment Repair Charges - - - Investment Interest - 279 (279) Total Revenues $ - $ 279 $ (279) Expenditures Professional Services Repairs & Maintenance Capital Outlays Total Expenditures Estimated Beginning Fund Balance Increase <Decrease> in Fund Balance Estimated Ending Fund Balance City of Port Townsend 48 10,248 $ - 10,248 $ 10,248 $ - $ 10,248 $ 10,248 $ 13,932 $ (3,684) (10,248) 279 (10,527) $ - $ 14,211 $ (14,211) City of Port Townsend 48 Special Revenue Funds System Development Charge Fund Revenues Interest Income Water SDCs -City Water SDCs- Outside city Sewer SDCs Stormwater SDCs Total Revenues Expenditures Residual Equity Transfers Interfund Subsidies (Water) Interfund Subsidies (Sewer) Interfund Subsidies (Storm) Total Expenditures Estimated Beginning Fund Balance Increase <Decrease> in Fund Balance Estimated Ending Fund Balance Budget Budget Year Year Increase 2007 2006 <Decrease> $ 15,092 $ 5,395 $ 9,697 158,202 155,100 3,102 142,382 139,590 2,792 $ 315,676 $ 300,085 $ 15,591 $ 220,000 $ 250,000 $ (30,000) 100,000 100,000 - $ 320,000 $ 350,000 $ (30,000) $ 377,306 $ 269,739 $ 107,567 (4,324) (49,915) 45,591 $ 372,982 $ 219,824 $ 153,158 City of Port Townsend 49 Special Revenue Funds Lodging Tax Fund Expenditures Professional Services -PT Chamber Budget Budget $ 70,000 Year Year Increase 50,000 2007 2006 <Decrease> Revenues - Hotel Motel Taxes $ 325,000 $ 325,000 $ - Investment Interest 6,350 3,176 3,174 Advertising -Joint Marketing Total Revenues $ 331,350 $ 328,176 $ 3,174 Expenditures Professional Services -PT Chamber $ 72,500 $ 70,000 $ 2,500 Professional Services -PAW 50,000 50,000 - Professional Services -Other - 2,500 (2,500) Advertising 122,850 104,000 18,850 Advertising -Joint Marketing 20,000 18,000 Communications 6,000 8,000 (2,000) Miscellaneous - Special Events 34,500 17,000 17,500 General Fund Overhead Charges 16,000 15,109 891 Interfund Services & Charges - Public Restrooms 10,000 10,000 - Interfund Services & Charges - Fort Worden Parking - - - Interfund Subsidies - McCurdy Pavilion debt service 22,000 22,000 - Interfund Subsidies - PT Marine Science Center debt 6,000 6,000 - Total Expenditures $ 359,850 $ 322,609 $ 35,241 Estimated Beginning Fund Balance $ 158,753 $ 158,819 $ (66) Increase <Decrease> in Fund Balance (28,500) 5,567 (34,067) Estimated Ending Fund Balance $ 130,253 $ 164,386 $ (34,133) City of Port Townsend 50 Special Revenue Funds Fire and Ememency Services Fund Budget Budget Year Year Increase 2007 2006 <Decrease> Revenues By Program General Fund support $ 801,000 $ 780,000 $ 21,000 EMS Levy $ 382,500 366,323 16,177 Ambulance Services - - - Note 1 Fire Inspection Services - 95,444 (95,444) Fire District #6 - - - Fire Protection Services - 15,000 (15,000) Grants - - - Total Revenues $ 1,183,500 $ 1,256,767 $ (73,267) Expenditures By Program Fire $ - $ 544,818 $ (544,818) Emergency Medical Services (EMS) - 711,949 $ (711,949) Contract Emergency Services 1,183,500 - 1,183,500 Total Expenditures $ 1,183,500 $ 1,256,767 $ (73,267) Expenditures by Object Personnel $ - $ 951,593 $ (951,593) Operating Expenditures - 15,711 (15,711) Intergovernmental Charges -EJFR 1,183,500 145,966 1,037,534 Note 1 Interfund Charges - 1,593 (1,593) Interfund Charges- Equipment Rental - 95,371 (95,371) Debt Service - Fire Station - 46,533 (46,533) Capital Outlay - - - Total Expenditures $ 1,183,500 $ 1,256,767 $ (73,267) Estimated Beginning Fund Balance - - - Increase <Decrease> in Fund Balance - - - Estimated Ending Fund Balance - - - Notes 1 Prior to 2005 the Emergency Service Fund was a department of the General Fund. In 2006, ambulance collections was contracted to East Jefferson Fire Rescue (EJFR) under a new inerlocal contract to transfer fire /ems operations to EJFR. Starting in 2007, all fire employees and fire apparatus was transferred to the new consolidated fire district, East Jefferson Fire Rescue. The city contracts directly for fire and emergency medical services from this new fire district. City of Port Townsend 51 Special Revenue Funds Community Services Fund Revenues By Program General Fund support Intergovernmental revenues Charges for services - pool Rental income Miscellaneous event revenues Donations Total Revenues Expenditures By Proaram Other Contract Service Providers Parks Maintenance Recreation Pool Interfund Charges Events Coordination Total Expenditures Expenditures by Obiect Personnel Operating Expenditures Capital Outlay Total Expenditures Actual Beginning Fund Balance Increase <Decrease> in Fund Balance Estimated Ending Fund Balance Budget Budget Year Year Increase 2007 2006 <Decrease> $ 659,089 $ 627,287 $ 31,802 - 2,300 (2,300) 110,000 90,000 20,000 10,000 25,000 (15,000) 6,207 - 6,207 $ 785,296 $ 744,587 $ 40,709 $ 86,855 $ 85,855 $ 1,000 251,307 272,828 (21,521) 91,350 90,000 1,350 234,250 218,424 15,826 73,777 43,994 29,783 47,757 38,486 9,271 $ 785,296 $ 749,587 $ 35,709 $ 354,135 $ 361,605 $ (7,470) 426,660 385,982 40,678 4,500 2,000 2,500 $ 785,296 $ 749,587 $ 35,709 $ (0) $ 5,000 $ (5,000) 0 (5,000) 5,000 $ 0 $ - $ 0 Notes: 1. Prior to 2005 the Community Services Fund was various departments of the General Fund. City of Port Townsend 52 Street Fund (In conjunction with Wastewater /Storm) Function: The Street Fund provides the resources for the Street Operating Division of Public Works. The Street Division is responsible for the maintenance of streets, gravel roads, alleys, sidewalks and shoulders within the City of Port Townsend. This includes street sweeping, vegetation management, tree removal, grading, pavement and shoulder repair, snow and ice removal, pavement markings and signage. The Arterial Street Fund is incorporated within the Street Fund for the construction, improvement, chip sealing, overlaying with asphalt, seal coating and repair of arterial highway and city streets. Goals and Objectives Goal: Evaluate, identify and prioritize failed road surfaces for reconstruction or overlay and develop an overall Street Operations & Maintenance Plan. Develop a pavement management program using the City's GIS system to identify and map locations of failing roads to create a priority list for repairs. Develop an O & M Plan for Streets. Goal: Continue to work on overlaying the streets and the surfacing of gravel roads throughout the City of Port Townsend. Identify streets that need to be resurfaced with the money that is appropriated for making these improvements. Reduce the number of miles of gravel roads that is needed to be maintained by resurfacing them using either chip sealing or asphalt. This will reduce our maintenance cost and the dust concerns that are raised by the residents on these types of roads. The Arterial Street Fund is incorporated within the Street Fund for the construction, improvement, chip sealing, overlaying with asphalt, seal coating and repair of arterial highway and city streets. In 2007, the city council approved a new dedicated public utility tax for the street fund. The proposed budget reflected a full year of this tax, but the final ordinance enacted it starting in April. As a result, the budget for street capital improvements was reduced from the original adopted ordinance by $204,000 to match the timing of the new public utility tax collections. Goal: Continue to work on replacing problem sidewalks. Identify and replace critical sidewalks with the money appropriated for doing this through the CIP program. Goal: Implement the Streets Capital Improvement Program. 2006 Accomplishments Continued to install hot tape bicycle symbols and arrows on streets that were previously painted to reduce the labor hours to maintain the paint. Continued making spot repairs to the downtown sidewalks to prevent tripping hazards. Spent approximately 40 hours doing this work. Chip sealed 0.67 miles of gravel streets utilizing the Jefferson County Road Department to do the work with the City forces for the preparation of the streets done. Ground out 205 feet by 14 feet of asphalt on Monroe Street between Jefferson and Franklin ROW'S and repaved with two inches of new asphalt to repair settling in this section City of Port Townsend 53 Street Fund of the roadway (Work done by Lakeside Industries). Did dig -outs on Lawrence Street where the roadway was failing. Pulled shoulders on Jefferson Street between Adams and Tyler (North side of Jefferson) to improve parking in this area. Pulled shoulders on Admiralty by Fort Warden State Park for better pedestrian walking in this area. City of Port Townsend 54 2006 as of Street Division Performance Measures 2004 2005 2007 Est. 10/31/06 Citizen concern /requests received 192 245 167 150 Painting of crosswalks, curbs, and parking stalls Time Spent, Hrs. 500 500 500 500 Miles of gravel road maintained twice a 8 7.0 6.0 5.0 year Miles of roadway maintained in the City. 89.1 76.9 * 76.9 * 80 Miles of road re- striped —one time per 40 40 40 40 year Street Shoulders - Miles pulled 1 1.5 1.0 2 Right -of -Way chip sealed or Paved 1.5 0 1.1 0.80 Depending on (Miles) Funding City of Port Townsend 54 Street Fund Revenues State Grants Federal Grants (Indirect) Motor Vehicle Fuel Tax Public Utility Taxes - Water, Sewer,Storm,Garbage Street Development Permits Investment Interest Street Payback Collection Miscellaneous Income Operating Transfers- In Total Revenues Expenditures by program Operations Capital Improvement Projects Total Expenditures Expenditures by object Repairs & Maintenance Utility Services Supplies Services & Charges Personnel Capital Outlay Interfund Services Total Expenditures Actual Beginning Fund Balance Increase <Decrease> in Fund Balance Estimated Ending Fund Balance Budget Budget Year Year Increase 2007 2006 <Decrease> 220,059 207,169 12,890 405,492 - 405,492 26,000 - 26,000 - 200,000 (200,000) $ 651,551 $ 407,169 $ 244,382 $ 509,396 $ 420,828 $ 88,568 152,625 70,000 82,625 $ 662,021 $ 490,828 $ 171,193 $ 662,021 $ 490,828 $ 171,193 $ 101,423 $ 125,166 $ (23,743) (10,469) (83,659) 73,190 $ 90,954 $ 41,507 $ 49,447 City of Port Townsend 55 70,800 65,800 5,000 41,500 41,500 - 111,585 57,402 54,183 154,567 138,279 16,288 152,625 70,000 82,625 130,944 117,847 13,097 $ 662,021 $ 490,828 $ 171,193 $ 101,423 $ 125,166 $ (23,743) (10,469) (83,659) 73,190 $ 90,954 $ 41,507 $ 49,447 City of Port Townsend 55 Library Fund MISSION The Port Townsend Public Library encourages a lifelong love of reading and learning and supports the quest for knowledge, creativity, and adventure by providing free and open access to information and ideas. RESOURCES AND SERVICES Collections Access to over 60,000 items including books, magazines and newspapers, videos /dvds, audio books, music cds, microfilm, and online subscription databases that make available periodical indexes and specialized health, literary, history, business and legal resources. Interlibrary Cooperation Participate in the CLAN consortium to share an automated card catalog, circulation system and interlibrary loans with the Jefferson County Library and Quilcene and Brinnon School libraries. Share in providing courier services between the two public libraries. Borrow books from outside CLAN through the national interlibrary loan system. Partner with the University of Washington library for historic newspaper digital project. Technolo2v Provide public access to the Internet and software including word processing and spreadsheets. Make available a four - laptop computer wireless training lab for the public and staff. Public Programs Offer a continuing series of programs for adults, teens, and children including special interest topics, workshops, story hours, concerts, well -known authors and illustrators, book discussion groups, summer reading, homework help, and curriculum support. Information Services Reference /research assistance, readers' advisory for popular materials, help with special collections including the Maritime Collection and historical newspapers on microfilm, training in the use of online databases. Operations Include collection development, book processing, cataloging, outreach and program planning, and fund raising. MAJOR ACCOMPLISHMENTS IN 2006 The Library Facilities are accessible, flexible, inviting, and functional to meet the community's needs. • Formed Facility Improvement Task Force (representatives from the Advisory Board of Trustees, Foundation, Friends, and staff) to begin the planning process to improve /expand the library building; • Selected Cardwell Architects to conduct initial facility assessment study to define the scope of the project. Meetings were held with staff and the public to gather input to help define needs and identify possible solutions; • Implemented space rearrangement plan fo rthe reference and non - fiction areas. This involved moving the Maritime Collection to a more visible location and creating additional public reading areas; • Replaced six outdated computers and the cumbersome local areas network to improve staff and public connectivity to the CLAN system, Internet, and internal departments; and • Continued to resolve major technical problems resulting from the upgrade of the CLAN library system upgrade completed in 2005. The Library collections in all formats are developed and managed to meet the diverse needs of all users. • Weeded and updated children's and adult fiction materials; • Strengthened and expanded large print, audio book, and young adult collections; and • Consolidated offsite storage materials for more efficient management and future elimination. The Library will strengthen its role as a community resource through development of City of Port Townsend 56 Library Fund programs and services and the creation of community and professional partnerships. • Began library website update in coordination with City format. Expanded teen page with homework help links and reworked electronic resources information for easier access; • Launched Books on Wheels, a major new service that provides library materials on a monthly basis to those within Port Townsend city limits who are unable to visit the library; • Presented the library's first community read program that featured the book Counting Coup: A True Story of Basketball and Honor on the Little Big Horn by Larry Colton. Programs were very well attended and included book discussion groups, an exhibition basketball game, and author program; • Received a Connecting Learners to Libraries grant from the Washington State Library to support an innovative project between the Port Townsend Public Library and MarVista Alternative High School that utilized graphic novels to teach research skills to high school students. The library also received $5,000 from Humanities Washington for the 2007 community read; and • Presented increased number of well- attended public program for adults, teens, and children, including an expanded Babytime (infant story hour) and teen writers group. The Library has adequate stable and predictable financial support from diverse public and private sources to ensure a sound financial future. • The new library Foundation board continued to focus on organizational restructuring for more effective major fundraising initiatives; and • Began the process of identifying the infrastructure needed for coordinating the fundraising efforts of the Foundation and Friends to achieve library funding priorities. The Library cultivates and celebrates professional and support staff and volunteer leadership essential for continuing excellence in providing quality library service. • Worked with local and state statistical resources to identify a more realistic community profile that can be utilized to support development of new programs and services; • Hired new Senior Library Associate /Teen Specialist; and • Held second volunteer leadership retreat (Foundation, Trustee Advisory Board, Friends of the Library) to update new members, meet Cardwell Architects, contribute ideas for the library's expansion project, and identify ways to work together in support of the implementation of the library's strategic plan. MAJOR 2007 PRIORITIES AND INITIATIVES The major focus for 2007 is the library improvement /expansion project. Cardwell Architects will complete the facility assessment study early in the year. This study will identify the project's pre- design concept, its overall cost, and be used as the basis for drafting the case statement for the fundraising plan. Community input is critical for the success of this project. Consequently, there will be numerous opportunities for public input as the project moves forward. An important parallel process to the architectural component is the drafting of a library fund development plan that will clarify roles and responsibilities of the major volunteer support organizations (Friends, Foundation and Trustee Advisory Board) in the library's fundraising process. This plan will establish the library's fundraising infrastructure, determine the means by which funds will be raised, and identify project priorities based on the library's long range plan. As the result of this planning process, the library will be positioned to work effectively in collaboration with key support groups to achieve major financial goals that supplement the library's operating budget. The completion of the implementation of the library's marketing plan is another priority of 2007. New initiatives will focus on promoting library services and programs through a variety of print and electronic formats to effectively reach the entire City of Port Townsend 57 Library Fund community. This will include the development of a "Welcome Packet" for new library card recipients, an e- newsletter, enhancement of website, improvement of signage, and creation of informational displays that will be placed in key community locations. Major community outreach programs and services such as the community read, books on wheels, and babytime will continue as they help to strengthen existing and build additional community partnerships. New program initiatives include a storytime for toddlers, the formation of a teen advisory board, and the development of Circle of Caring, a program that provides seniors a forum to share life experiences through reading and discussion. Programs such as these also help the library reach out to new audiences and offer them opportunities to benefit from their public library. The Port Townsend Public Library moves into 2007 continuing to be the busiest public library per capita in the State of Washington with a growing annual circulation. The community has high expectations for current collections in all formats, quality programs, and innovative services. The library staff works hard to leverage and maximize resources to meet this public challenge. The New Year promises to be one of planning and growth as the library works together with its community and volunteer support groups; Friends of the Library, Foundation and Advisory Board of Trustees, to create a library that best addresses all of its diverse needs. The Port Townsend Public Library appreciates and recognizes how fortunate it is to the strong support of all of these "special friends of the library ". City of Port Townsend 58 Library Department Performance Measure 2005 Actual 2006 Actual 54 hr /wk 54 hr /wk Circulation total 212,448 225,449 Reference Questions 10,427 11,220 Interlibrary Loans 1,356 1,300 Public Computer Use to ins 18,497 38,417 Total Library Cardholders 8,719 8,830 Residents 7,651 7,713 Non - Residents 1,082 1,117 Collections size (books, videos, dvds, 60,526 56,733 books on tape & cd; music cds, periodicals) Periodical subscriptions 161 162 Online databases 18 26 Youth Programs 115 299 Youth Program 4,598 10,087 Attendance Adult Programs 17 139 Adult Program 644 1970 Attendance City of Port Townsend 59 Library Fund Revenues By Program General Fund support Fines Total Revenues Expenditures By Program Library Services Total Expenditures Expenditures by Object Personnel Operating Expenditures Capital Outlay Total Expenditures Estimated Beginning Fund Balance Increase <Decrease> in Fund Balance Estimated Ending Fund Balance Notes: Budget Budget Year Year Increase 2007 2006 <Decrease> $ 712,547 $ 675,168 $ 37,379 10,000 5,000 5,000 $ 722,547 $ 680,168 $ 42,379 $ 725,547 $ 680,168 $ 45,379 $ 725,547 $ 680,168 $ 45,379 $ 459,908 $ 432,840 $ 27,068 200,639 174,778 25,861 65,000 72,550 (7,550) $ 725,547 $ 680,168 $ 45,379 $ 3,000 $ (3,000) _ 1. Prior to 2005 the Library Fund was a department of the General Fund. - $ 3,000 - (3,000) City of Port Townsend 60 Public Works Administration and Engineering Mission Statement: To provide overall leadership, management, administration, and support for all the divisions of the Public Works Department. To provide safe, reliable, efficient Public Works services to the community. To provide sound technical advice to the City Manager, City Council, City staff, and the public. To ensure the effective and efficient integration of Public Works efforts into the overall operation of the City as well as appropriate County /State plans. 2007 Goals and Objectives Goal: Develop and manage plans and execute programs that aid in the informed decision making by Public Works divisions, other City Departments, City Manager, and Council. Manage utility system upgrades to ensure regulatory compliance and the safe, reliable provision of essential City services including improvements to the water distribution and wastewater collection systems, sewer trunk line improvements and continued planning and design efforts on other elements of the water and waste water systems. Ensure continued reliable, safe water supply through completion of environmental analyses and permit renewals. Provide assistance to the City Manager, Council, and citizens to examine and adopt a City Storm Water Management Plan. Improve the quality of life in Port Townsend through continual review and improvement of City parks, recreation, and swimming pool services. Increase emphasis on transportation planning and street maintenance and improvement operations. Develop plans for Upper Sims Way Improvement, and Downtown and Uptown Streetscape proj ects. Support the activities of all Public Works elements and other City departments by providing current, accurate GIS data to fullest extent possible. Goal: Oversee the development and timely, cost - efficient administration of capital projects. Provide project management and technical support for the development, bidding, contract compliance, and project close out for municipal capital facilities projects to include City Hall restoration /construction, and new fire station. Continue planning for the relocation of the Police Department from its current site. Initiate planning efforts for improvements to the pool and Wave Gallery facilities. Goal: Secure the means to finance capital projects necessary to a healthy infrastructure by careful management of current resources and a continuing vigilance for favorable financing. Conduct a utilities system rate analysis the lowest possible utility rates that will support the City's adopted plans for utility system capital projects. City of Port Townsend 61 Public Works Administration and Engineering Continue search for grant funding opportunities and low interest loans in conjunction with the City's capacity to finance the loans. Provide assistance in grant and loan preparation to all Public Works divisions and City departments. Goal: Create administrative systems to increase efficiencies and save tax - and rate - payers money. Implement procurement policies and methods that assure the best value at the best price while maintaining strict compliance with state and city bidding and procurement laws. Continue working towards full compliance on budget and bidding processes on an ongoing basis. Provide updates and training on the latest procurement methods, laws, and policies. Ensure the efficient and effective organization of critical information through daily emphasis on the Records Management Program. Goal: Work toward increased customer satisfaction with Public Works services. Continue to support and improve the Customer Request Program. City of Port Townsend 62 Public Works Administration and Engineering Revenues By Program Interfund Services General Fund support Total Revenues Expenditures By Program Administration Engineering Services Total Expenditures Expenditures by Obiect Personnel Operating Expenditures Interfund Charges Capital Outlay Total Expenditures Actual Beginning Fund Balance Increase <Decrease> in Fund Balance Estimated Ending Fund Balance Budget Budget Year Year Increase 2007 2006 <Decrease> $ 1,001,493 $ 878,777 $ 122,716 $ 1,001,493 $ 878,777 $ 122,716 $ 282,841 $ 302,427 $ (19,586) 718,652 576,350 142,302 $ 1,001,493 $ 878,777 $ 122,716 $ 749,958 $ 683,317 $ 66,641 138,078 185,460 (47,382) 93,457 - 93,457 20,000 10,000 10,000 $ 1,001,493 $ 878,777 $ 122,716 City of Port Townsend 63 General Government Debt Service The city issues long term debt instruments to finance large capital projects. These are typically for items that have long useful lives for which this financing method will reduce the annual debt service burden on its citizens. Since local governments are permitted to issue tax - exempt bonds, this financing option helps reduce the cost of borrowing. State law limits general obligation bond issues. These bonds may be issued in two different methods: voted bonds and non -voted bonds. Washington State law limits the voted bond indebtedness to two and one -half percent (2.5 %), including non -voted debt, of the city's current assessed valuation (A.V.). Cities are also authorized to issue general obligation bonds for an additional two and one -half percent (2.5 %) of the city's current assessed valuation for parks and open spaces and utilities. Both of these bond issues must be voted and approved by a 60 percent majority vote of the registered voters. Bonds of this type are unlimited tax obligations of the city, and are backed by the full faith and credit of the city. The city presently has no voted bonds outstanding. Non -voted bonds are called "Councilmanic" bonds and are limited by state law to one and one -half percent (1.5 %) of the city's current assessed valuation. The city currently has four general government Councilmanic bonds outstanding totaling $6,628,393, and one grant anticipation note totaling $1,625,000. In 1991, the city issued $250,000 limited tax general obligation bonds for the Balloon Hanger at Fort Worden for performing arts as authorized by Ordinance 2235. The source of monies to repay the debt service for this issue comes from an annual operating transfer from the city's Lodging Tax Fund, which collects the lodging tax. In 1999, the city issued $645,000 limited tax general obligation bonds for various capital improvements. These capital items include: library improvements, police station improvements, fire station improvements, city hall facilities and Port Townsend Marine Science Center improvements as authorized by Ordinance 2709. The source of monies to repay the debt service for this issue comes from a portion of the city's general property tax levy and annual operating transfers from the Lodging Tax Fund. In 2002, the city issued $3,465,000 limited tax general obligation bonds for the construction of the city hall annex building and remodel of old city hall as authorized by Ordinance 2812. The source of monies to repay the debt service for this issue comes from a portion of the city's general property tax levy and real estate excise tax revenues. In 2003, the city issued $2,390,000 in limited tax general obligation bonds for the construction of the city hall annex building and remodel of old city hall as authorized by Ordinance 2844. The source of monies to repay the debt service for this issue comes from a portion of the city's general property tax levy and real estate excise tax revenues. City of Port Townsend 64 General Government Debt Service In 2005, the city issued $1,525,000 in limited tax general obligation bonds for the construction of the city hall annex building and remodel of old city hall as authorized by Ordinance 2908. The source of monies to repay the debt service for this issue comes from a portion of the city's general property tax levy and real estate excise tax revenues. Located in the Appendix is a schedule that computes the city's legal debt limitation as established by state law. Summary of General Government Non -voted Limited Tax Obligation Bonds City of Port Townsend 65 Total Total Total Year Principal Interest Debt Service 2007 316,744 321,379 638,123 2008 327,741 311,396 639,137 2009 333,800 300,145 633,945 2010 349,920 288,046 637,966 2011 365,401 274,646 640,047 2012 375,000 260,635 635,635 2013 390,000 245,648 635,648 2014 410,000 229,623 63 9, 623 2015 425,000 212,262 637,262 2016 445,000 195,288 640,288 2017 460,000 176,825 636,825 2018 480,000 157,320 637,320 2019 505,000 135,740 640,740 2020 525,000 112,530 637,530 2021 550,000 88,385 638,385 2022 580,000 62,975 642,975 2023 405,000 36,183 441,183 2024 205,000 18,051 223,051 2025 210,000 9,135 219,135 2026 - - - 2027 - - - Totals $ 7,658,606 $ 3,436,210 $ 11,094,816 City of Port Townsend 65 General Government Debt Service General Government Debt Service Fund Revenues Property Taxes Investment Interest Intergovernmental Charges Operating Transfers- In Total Revenues Expenditures Debt Service Principal Debt Service Interest Professional Services Total Expenditures Estimated Beginning Fund Balance Increase <Decrease> in Fund Balance Estimated Ending Fund Balance Budget Budget Year Year Increase 2007 2006 <Decrease> 2,585 931 1,654 60,000 - 60,000 586,824 624,493 (37,669) $ 649,409 $ 625,424 $ 23,985 $ 319,744 $ 288,801 $ 30,943 321,380 335,087 (13,707) 1,000 1,000 - $ 642,124 $ 624,888 $ 17,236 $ 51,704 $ 46,571 $ 5,133 7,285 536 6,749 $ 58,989 $ 47,107 $ 11,882 City of Port Townsend 66 Utility Debt Service The city's utility funds may also issue long -term debt instruments to finance large capital projects. These are typically for utility plant improvements that have long useful lives for which this financing method will reduce the annual debt service burden on its utility customers (ratepayers). Since local governments are permitted to issue tax - exempt bonds, this financing option helps reduce the cost of borrowing. These debt instruments are usually issued as revenue bonds. The source of monies to repay the revenue bond debt service comes from utility revenues, not property taxes. In addition to revenue bonds, cities may apply to Washington State for low interest and /or interest -free loans. This is a competitive process that involves city staff presenting a proposal in Olympia for an application for Public Works Trust Fund Loans and State Revolving Fund Loans. Because of the low interest and interest -free loans, this method of financing public works is very beneficial to the city's ratepayers. The application process is comprehensive and competitive. Those cities scoring highest in the State's evaluation process receive the favorable loans. The more significant qualifying criteria requires cities to: • Impose the 1/4 of one percent real estate excise tax • Develop a long -term plan for financing public work needs • Use all local revenue sources which are reasonably available for funding public works • Adopt a comprehensive plan • Demonstrate a history of maintaining the city's utility system • Demonstrate a commitment to professional management The evaluating criteria are weighted 60% professional management and 40% city need. The city has received four Public Works Trust Fund (PWTF) low interest State loans. One is a PWTF 1998 loan for water projects totaling $2,138,740, for 20 years at an interest rate of 1 %. Another is a PWTF 1999 loan for sewer projects totaling $1,593,739 at an interest rate of 1 %. The third is a PWTF 2001 loan for sewer outfall totaling $1,153,350 at an interest rate of 0.5% for 19 years. A fourth is a PWTF 2002 loan for Morgan Hill water system upgrades totaling $1,242,743, for 20 years at an interest rate of 0.5 %. There are also two no- interest or low interest State Revolving Fund (SRF) loans. One is for the wastewater master plan for $182,620, and the second is for a wastewater conveyance system totaling $1,000,000, for 19.5 years at 1.5 %. The city sold its Tri -Area Water System in December 2001 to the Public Utility District #1 (PUD). As part of that transaction, certain revenue bonds were defeased, and certain state loans were transferred to the PUD. The city rescheduled the state loans when the amounts were finalized. In 1978, the city utility issued $395,000 revenue bonds for capital improvements to the utility as authorized by Ordinance 1798. The source of monies to repay the City of Port Townsend 67 Utility Debt Service debt service for this issue comes from the revenues of the utility. In 1992, the city utility issued $6,820,000 revenue bonds for capital improvements to the utility as authorized by Ordinance 2305. The source of monies to repay the debt service for this issue comes from the revenues of the utility. Subsequently, the city refunded $4,350,000, of these bonds with a 1998 revenue refunding bond issue to reduce the total debt obligation with new low interest bonds. State Loans Total In 1998, the city utility issued $4,950,000 revenue refunding bonds and $1,000,000 revenue bonds for capital improvements to the utility as authorized by Ordinance 2625. The revenue refunding bonds refinanced $115,000 of the remaining 1978 - Series B revenue bonds and most of the 1992 revenue bonds. The refunding issued produced significant savings in future interest costs to the utility ratepayers. The source of monies to repay the debt service for this issue comes from the revenues of the utility. Revenue and Refunding Bonds Total Total Total Total Year Principal Interest Debt Service 2007 269,475 34,761 304,235 2008 270,063 32,499 302,562 2009 270,659 30,229 300,888 2010 271,265 27,949 299,214 2011 271,880 25,661 297,541 2012 272,504 23,363 295,867 2013 273,138 21,056 294,193 2014 273,781 18,739 292,520 2015 274,434 16,412 290,846 2016 275,096 14,076 289,172 2017 275,769 11,730 287,499 2018 276,452 9,373 285,825 2019 232,427 7,007 239,433 2020 173,535 5,077 178,612 2021 174,250 3,732 177,982 2022 114,272 2,377 116,648 2023 49,600 1,314 50,914 2024 50,347 567 50,914 Totals $ 4,068,946 $ 285,920 $ 4,354,866 In 1998, the city utility issued $4,950,000 revenue refunding bonds and $1,000,000 revenue bonds for capital improvements to the utility as authorized by Ordinance 2625. The revenue refunding bonds refinanced $115,000 of the remaining 1978 - Series B revenue bonds and most of the 1992 revenue bonds. The refunding issued produced significant savings in future interest costs to the utility ratepayers. The source of monies to repay the debt service for this issue comes from the revenues of the utility. Revenue and Refunding Bonds Total City of Port Townsend 68 Total Total Total Year Principal Interest Debt Service 2007 500,000 122,480 622,480 2008 525,000 100,875 625,875 2009 545,000 78,195 623,195 2010 575,000 54,125 629,125 2011 455,000 27,335 482,335 2012 15,000 6,125 21,125 2013 15,000 5,375 20,375 2014 20,000 4,500 24,500 2015 20,000 3,500 23,500 2016 20,000 2,500 22,500 2017 20,000 1,500 21,500 2018 20,000 500 20,500 Totals $ 2,730,000 $ 407,010 $ 3,137,010 City of Port Townsend 68 Utility Debt Service The utility debt service payments for the revenue and revenue refunding bonds are budgeted in a utility debt service fund as listed below. The debt service payments for the State trust and revolving loans are budgeted as a debt service line item in the Water /Sewer Fund. A debt service fund for the State loans is not necessary. Water /Sewer Bond Funds Revenues Investment Interest Operating Transfers- In from Water Utility Operating Transfers- In from Sewer Utility Total Revenues Expenditures Debt Service Principal Debt Service Interest Professional Services Total Expenditures Estimated Beginning Fund Balance Increase <Decrease> in Fund Balance Estimated Ending Fund Balance Budget Budget Year Year Increase 2007 2006 <Decrease> $ 20,098 $ 9,772 $ 10,326 66,777 62,664 4,113 556,703 560,181 (3,478) $ 643,578 $ 632,617 $ 10,961 $ 500,000 $ 480,000 $ 20,000 122,480 142,845 (20,365) 1,000 - 1,000 $ 623,480 622,845 $ 635 $ 502,441 $ 488,589 $ 13,852 20,098 9,772 10,326 $ 522,539 $ 498,361 $ 24,178 City of Port Townsend 69 Capital Project Funds Capital project funds are used to account for financial resources to be used for the acquisition or construction of major capital facilities (other than those financed by proprietary funds and trust funds). The City has three non - utility capital project funds called the Capital Improvement Fund, CityHall /Annex Construction Fund, and Fire Station Construction Fund. The city has one utility capital improvement fund called the Utility Construction Fund. Capital Improvement Fund Revenues come from several different sources for this fund. The real estate excise tax, bond proceeds, and fund transfers are major sources of revenue for this fund. Some transfers from other funds like the General Fund and Street Fund. Some are revenues deposited into this fund from grants via state and federal sources, "fee in lieu of," "mitigation fees," "impact fees" for applicable projects, and interest income. The real estate excise tax (R.E.E.T.) that is levied by the State is deposited into this fund. This tax is levied on all sales of real estate, measured by the full selling price, including any liens, mortgages and other debts given to secure the purchase. The state levies this tax at the rate of 1.28 percent. A locally imposed tax is also authorized. In 1990 and 1992, the State Legislature made a number of changes in the locally imposed R.E.E.T. As Port Townsend is required to plan under the Growth Management Act (GMA), new language was enacted regarding the first quarter (.025) percent of the tax. Based on the GMA, Port Townsend was given the option of levying a second quarter percent to help defray the costs of implementing the Growth Management Act. The city receives the second quarter of R.E.E.T, which results in a combined rate of 1.78 %. The first quarter percent of the R.E.E.T. receipts must be spent solely on capital projects that are listed in the Capital Facilities Plan element of the comprehensive plan. Capital projects are defined as: "Those public works projects of a local government for planning acquisition, construction, reconstruction, repair, replacement, rehabilitation, or improvement of streets, roads, highways, sidewalks, street and road lighting systems; traffic signals; bridges; domestic water systems; storm and parks recreational facilities; fire /protection facilities; trails; libraries; administrative judicial facilities; and river and /or waterway flood control." The second quarter percent of the R.E.E.T. that is levied and is part of this budget can only be levied by those cities that are required to plan under GMA. In this quarter percent of R.E.E.T. "capital projects" mean: "Those public works projects of a local government for planning acquisition, construction, reconstruction, repair, replacement, rehabilitation, or improvement of streets, roads, highways, sidewalks, street and road lighting systems; traffic signals; bridges; domestic water systems; storm and sanitary sewer systems and planning, construction, reconstruction, repair, rehabilitation, or improvement to parks." City of Port Townsend 70 Capital Project Funds When other operating divisions or funds expend monies for qualified projects, transfers -out of the R.E.E.T. Fund are used to reimburse the operating division. The interest income is based on prudent investing with the inclusion of construction project scheduling and cash flow analysis. The last major capital project accounted for in this fund was the Union Wharf project. Implementation of project cost accounting systems in 1998 has made it possible to individually track capital projects in this fund. City Hall Annex Construction Fund In 2003, a new fund was established to account for all revenues and expenditures for the construction of the city hall annex and the remodeling of old city hall. Bond proceeds received for city construction projects are deposited into this fund. Also, any grants obtained for city hall projects will be accounted for in this fund. The city will be closing out this project and fund during 2007. City Fire Station Construction Fund In 2003, the city received a grant award from Federal Emergency Management Agency (FEMA) for replacement of the city fire station. To fund the construction costs for this project the city issued grant anticipation notes totaling $1,625,000, and a portion of limited tax general obligation bonds, 2003. The city will be closing out this project and fund during 2007. Utilitv Construction Fund The Utility Construction Fund is a capital project fund restricted to expenditures for approved utility improvements. The interest earnings on this fund are also restricted to the approved utility improvement. City of Port Townsend 71 Capital Project Funds Capital Improvement Fund Bond and Loan Proceeds Donations Total Revenues Capital Project Expenditures Personnel Building & Structures Streets Capital Improvements Parks Capital Improvements Vessel Removal -RR Trestle Operating Transfer 2002 Bond Payment Operating Transfer 2003/2004 Bond Payment Operating Transfer 1999 Bond Payment Operating Transfer 2005 Bond Payment Interfund Charges Intergovernmental Loans - Recreation Center Miscellaneous Expense Total Expenditures Estimated Beginning Fund Balance Increase <Decrease> in Fund Balance Estimated Ending Fund Balance $ 2,298,116 $ 2,843,970 L_(5 Budget Budget 1,886,676 1,536,000 Year Year Increase (925,000) 2007 2006 <Decrease> Revenues - 79,398 143,061 Real Estate Excise Tax #1 $ 204,674 $ 531,486 $ (326,812) Real Estate Excise Tax #2 204,674 - 204,674 Federal Grants - 280,000 (280,000) State Grants - 345,000 (345,000) State Grants - Transportation Improvement Board 1,886,676 89,000 1,797,676 State Grants -Sims Way Signal - 300,000 (300,000) Public Works Trust Fund Loans - 80,000 (80,000) Local Improvement District Proceeds - 700,000 (700,000) Investment Interest 2,091 3,484 (1,393) Miscellaneous Income - 15,000 (15,000) Interfund Transfer -in 2003 Bond Proceeds - 500,000 (500,000) Bond and Loan Proceeds Donations Total Revenues Capital Project Expenditures Personnel Building & Structures Streets Capital Improvements Parks Capital Improvements Vessel Removal -RR Trestle Operating Transfer 2002 Bond Payment Operating Transfer 2003/2004 Bond Payment Operating Transfer 1999 Bond Payment Operating Transfer 2005 Bond Payment Interfund Charges Intergovernmental Loans - Recreation Center Miscellaneous Expense Total Expenditures Estimated Beginning Fund Balance Increase <Decrease> in Fund Balance Estimated Ending Fund Balance $ 2,298,116 $ 2,843,970 L_(5 $ 2,302,000 $ 2,945,960 L_@43,960 242,621 $ 122,108 $ 120,513 (3,884) (101,990) 98,106 $ 238,737 $ 20,118 $ 218,619 City of Port Townsend 72 1,886,676 1,536,000 350,676 - 925,000 (925,000) - 59,000 (59,000) 79,398 - 79,398 143,061 375,960 (232,899) 72,312 - 72,312 93,053 - 93,053 2,500 - 2,500 25,000 25,000 - - 25,000 (25,000) $ 2,302,000 $ 2,945,960 L_@43,960 242,621 $ 122,108 $ 120,513 (3,884) (101,990) 98,106 $ 238,737 $ 20,118 $ 218,619 City of Port Townsend 72 Capital Project Funds City Hall /Annex Construction Fund Revenues Investment Interest Federal Grant - Save America's Treasures Donations - Jefferson County Historical Society Miscellaneous Total Revenues Capital Project Expenditures City Hall Annex City Hall Renovation Total Expenditures Estimated Beginning Fund Balance Increase <Decrease> in Fund Balance Estimated Ending Fund Balance Note: Budget Budget Year Year Increase 2007 2006 <Decrease> - 450,000 (450,000) $ - $ 450,000 $ (450,000) - 450,000 (450,000) 100,000 450,000 (350,000) $ 100,000 $ 900,000 $__(8 0,000 $ 391,264 $ 2,219,670 $ (1,828,406) (100,000) (450,000) 350,000 $ 291,264 $ 1,769,670 $ (1,478,406) Starting in 2003, all capital improvements for City Hall Annex and Old City Hall Renovation are budgeted in a new fund (Fund 302). In prior years capital improvements were budgeted directly in the General Government Capital Improvement Fund. City of Port Townsend 73 Capital Project Funds Fire Station Construction Fund Budget Budget Year Year Increase 2007 2006 <Decrease> Revenues Investment Interest Real Estate Excise Taxes FEMA Grant Federal Grant Proceeds Miscellaneous Residual Equity Transfers Residual Equity Transfers - 2003 Bond Total Revenues Capital Proiect Expenditures Professional Services Land and Improvements Grant Anticipation Note Payable Building and Structure Total Expenditures Estimated Beginning Fund Balance Increase <Decrease> in Fund Balance Estimated Ending Fund Balance 80,000 50,000 30,000 $ 80,000 $ 50,000 $ 30,000 80,000 50,000 30,000 $ 80,000 $ 50,000 $ 30,000 $ 795 $ - $ 795 IV IJJ %V - %V IJJ City of Port Townsend 74 Capital Project Funds Utility Construction Fund Revenues Investment Interest Operating Transfers -In from Water Fund Operating Transfers -In from Sewer Fund Miscellaneous Total Revenues Capital Project Expenditures General Fund Overhead Expenditures Improvements - Stormwater Improvements - Water Improvements - Sewer Total Expenditures Estimated Beginning Fund Balance Increase <Decrease> in Fund Balance Estimated Ending Fund Balance Note: Budget Year 2007 $ 9,849 $ 280,000 435,000 Budget Year Increase 2006 <Decrease> 6,823 $ 3,026 150,000 130,000 350,000 85,000 $ 724,849 $ 506,823 $ 218,026 $ 78,636 $ 75,000 $ 3,636 136,364 - $ 136,364 254,546 375,000 (120,455) 395,455 330,000 65,455 $ 865,000 $ 780,000 $ 85,000 $ 246,228 $ 341,142 $ (94,914) (140,151) (273,177) 133,026 $ 106,077 $ 67,965 $ 38,112 Starting in 2002, all capital improvements for water /sewer are budgeted in a new fund (Fund 415). 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The water utility shall provide a safe, • Installed 80 new water taps and reliable water supply that meets all meters. federal and state standards and shall • Installed 300 replacement meters. provide high quality service to its • Repaired 10 water main breaks. customers. • Installed 20 new fire hydrants. • Replaced 500 feet of old, Goals for 2007 undersized, galvanized water • The water utility will stay • main. Tested flow and residual pressure informed on state and federal on 158 fire hydrants. issues and regulatory trends. • Completed an inventory of cross • The utility will plan for connection control devices. compliance with new regulations • Purchased new meter reading on water quality. hardware that will allow • The utility will stay involved in conversion to radio reads in the the regional water resource future. planning process. • The water utility will obtain Water Quality and Treatment special use permit renewals from the U.S. Forest Service. • Treated an average of 15 million • The water utility will concentrate gallons per day. capital improvement programs • Delivered an average of one on areas identified as having million gallons a day to the deficient fire protection and distribution system and 14 restricted flow. million gallons a day to Port • The water utility will improve its Townsend Paper Company. cross connection control • Continued extensive, required program. monitoring and testing programs to maintain and document water Water Distribution quality, at the source, after treatment, and in the distribution Year 2005 accomplishments system. • Continued required watershed • Reliably delivered safe clean control program in cooperation drinking water to 4 456 taps / with the U.S. Forest Service. 8,500 customers at up to • Continued to meet the stringent 2,000,000 gallons per day. water quality criteria for • Reliably delivered safe clean avoidance of filtration. drinking water to Fort Worden • Continued participation in State Park and to P.U.D. Number regional water resource planning One of Jefferson County. efforts. • Accurately read 4,456 meters each month. City of Port Townsend 83 Water /Sewer Utility Fund • Continued the process for renewal of our U.S. Forest Service special use permits. City of Port Townsend 84 Street /Sewer /Storm Divisions City of Port Townsend 85 Water /Sewer Utility Fund Wastewater Collection Division (In coniunction with Street /Storm Funds) Function: To maintain the Wastewater Collection System in order to provide for the safe transmission of wastewater from the source to the Wastewater Treatment Facility. Goals and Obiectives Goal: Reduce the number of sewer overflows and back -ups, emergency calls and liability to the City. Rehabilitate or replace failing portions of the collection system as CIP funding allows. Adhere to the three month, six -month and annual sewer cleaning schedule of problem lines. Clean one complete sewer basin as established in the yearly basin -by -basin cleaning schedule. This is to clean all sewer lines throughout the collection system over a five -year schedule. This effort is in addition to the six -month cleaning of problem sewer lines. Perform maintenance and treatment of known grease problem sewer lines. To work cooperatively with the businesses on reducing the discharge of grease into the wastewater collection system. This will be done by enforcement of the City's sewer ordinance and working with the businesses on the installation and maintenance of grease traps. To root cut approximately 2,000 feet of sewer line as identified in the Wastewater Comprehensive Master Plan and known lines with root problems. 2006 Accomplishments Cleaned all sewer lines on the list of problem lines that require a three month, six -month and annual cleaning schedule. Cleaned 25 % of one of the five basins as identified in the five year cleaning program. Root cut approximately 1,000 feet of problem sewer lines. Now televising the lines to see the effectiveness of the application of RootX on controlling the roots coming into these lines. Televised 31,493 feet of the sewer lines to check on condition and problems in the lines. Performance Indicators 2006 2004 2005 as of 2007 Estimated 10/31/2005 Number of citizen concern/requests received 21 26 14 15 Number of feet of line cleaned on 6 month schedule 7,500 8,000 7,500 7,500 Maintenance holes installed /rebuilt 5 3 0 6 Complete cleaning of one sewer basin (five year 40% 30% 25% 50% program) Length of sewer lines (feet) performed root cutting 1,000 3,000 1,000 3,000 Length of sewer lines (miles) in the city 70 72.45 73 74 Hours spent on televising sewer lines (inspecting 60 90 90 100 City of Port Townsend 86 Water /Sewer Utility Fund Wastewater Treatment Division Function: To provide for the treatment of wastewater and the operating, monitoring and maintenance of the facilities in compliance with federal and state laws and regulations and in agreement with the City's concerns for public safety and health and environmental quality. The wastewater treatment facility (WWTF) is responsible for the operation and maintenance of eight sewage lift stations that support the City's wastewater collection system and is responsible for one storm water lift station. Goals and Obiectives Goals: • Operate the wastewater treatment facility within all limits required by our N.P.D.E. S. (National Pollution Discharge Elimination System) permit. • Operate and maintain all of the lift stations to assure optimal performance and reliability. Objectives: • Continue to operate the wastewater treatment facility to prevent violations of the N.P.D.E.S. permit by providing monitoring and maintenance of the facility and by enforcement of the City's sewer use ordinance (PTMC 13.21 through PTMC 13.24). Continue to operate and maintain the lift stations to provide optimal performance and reliability by performing regular scheduled maintenance on all of the equipment. • Continue to implement the approved capital improvement program (CIP). • Continue to work with the wastewater collection division in the removal of infiltration and inflow (rain) from the collection system. • Continue to operate the facilities as efficiently and economically as possible to produce the best effluent quality possible within the available resources. • Maintain the facility to ensure the prolonged life of the capital investment. 2006 Accomplishments • We have operated the WWTF within all the N.P.D.E.S. permit limits. • All maintenance activities were performed on all of the equipment at the wastewater facility and sewage lift stations and we had no failures in our system. • Received operations award for 2005 from the Washington State Department of Ecology for exemplary performance in the operation of the City's Wastewater Treatment and Collection systems. • Successfully passed both (2 /year) lab accreditation performance evaluation studies in order to maintain our lab accreditation. • Successfully completed the on -site assessment (audit) with the Department of Ecology Lab Accreditation Program. • Changed odor control carbon at the Gaines Street Lift Station. City of Port Townsend 87 Water /Sewer Utility Fund (1) N.P.D.E.S. is National Pollution Discharge Elimination System. (2) When the facility reaches 85% the City is required to submit a plan and a schedule for continuing to maintain capacity at the facility sufficient to achieve the effluent limitations and other conditions of the permit. City of Port Townsend 88 2006 Performance Indicators 2004 2005 as of 2007 10/31/06 Est. Oversee the treatment facility within the N.P.D.E.S. permit limits. (1) 100% 100% 100% 100% Wastewater treatment facility capacity (% used) Flow 61.9 % 63.0 % 66.4% 66% based on the new rating of the facility 2 Wastewater treatment facility capacity (% used) BOD based on the new rating of the facility (2) 61.2% 66.4% 67.8% 68% Wastewater treatment facility capacity (% used) TSS 53.0 % 56.6% 57.1 % 58% based on the new rating of the facility 2 Average flow rate per day (million gallons) 0.892 0.907 0.951 0.925 Cost to treat the wastewater (per gallon) $ 0.0038 $ 0.0020 $ 0.0032 $ 0.0035 (1) N.P.D.E.S. is National Pollution Discharge Elimination System. (2) When the facility reaches 85% the City is required to submit a plan and a schedule for continuing to maintain capacity at the facility sufficient to achieve the effluent limitations and other conditions of the permit. City of Port Townsend 88 Water /Sewer Utility Fund Biosolids Composting Division Function: To provide biosolids, septage and yard waste composting treatment and the operation, monitoring and maintenance of such facilities in compliance with federal and state laws and regulations and in agreement with the City's concerns for public safety, health and environmental quality. Goals Operate the biosolids composting facility within all limits required by our State Waste Discharge permit. This is the liquid portion of our process. To produce Class "A" exceptional quality compost materials that meets all federal and state regulations for distribution to the public. Operate and maintain all of the equipment at the facility to assure optimal performance and reliability. Operate the biosolids composting facility in a fiscally responsible manner to reduce the costs to the utility rate - payers. Objectives Continue to efficiently operate the biosolids composting facility to prevent violations of the State Waste Discharge permit by providing continued monitoring and maintenance of the facility. Continue to operate and maintain the equipment to provide optimal performance and reliability by performing regular scheduled maintenance on all of the equipment. Investigate charging for yard waste materials to cover the cost of processing and handling of the materials coming into the facility. Continue to operate the wastewater treatment facility as efficiently and economically as possible to produce the best effluent quality possible within the available resources. Monitor and test the compost materials for compliance with all federal and state regulations to be classified as Class "A" exceptional quality compost materials for distribution to the public. 2006 Accomplishments The facility has been operated within all of the State Waste Discharge permit limits. To 10/31/2006 we have produced two batches of compost for distribution to the public. To 10/31/2006 we have sold 2,188 cubic yards of compost to the public. Have provided 170 cubic yards of compost for general City use and City projects. Also donated 40 cubic yards to community projects. City of Port Townsend 89 Water /Sewer Utility Fund (1) N.P.D.E.S. is National Pollution Discharge Elimination System. City of Port Townsend 90 2006 2007 Performance Indicators 2004 2005 as of Est. 10/31/06 Oversee the treatment facility within the N.P.D.E. S. permit 100% 100% 100% 100% limits. 1 To produce class "A" compost for distribution to the public with a goal of having at least three sale events during the year. 3 4 2 3 Batches produced are: Septage received (Gallons) 390,493 497,622 149,296 400,000 Dry Tons of biosolids processed 210.40 241 179 240 Yard Waste Received (Tons) 5,783 6,854 5,458 7,000 Finished Compost Produced (cubic yards) 1,822 3,234 2,188 3,500 (1) N.P.D.E.S. is National Pollution Discharge Elimination System. City of Port Townsend 90 Water /Sewer Utility Fund Revenues Revenues from Utility Sales Miscellaneous Operating Revenues Engineering Fees Investment Interest Biosolids Compost SDC Residual Equity Transfers Water /Sewer Latecomer Fees System Development Charges Total Revenues Expenditures by Program Utility Billing City Water Operations City Water Supply Wastewater Treatment Wastewater Collection Biosolids Water Resources Total Expenditures Expenditures by Object Personnel Supplies & Services Utility Taxes Intergovernmental Services Interfund Services Equipment Rental Debt Service Transfers Out Capital Outlay Total Expenditures Estimated Beginning Fund Balance Increase (Decrease) in Fund Balance Estimated Ending Fund Balance Budget Budget Year Year Increase 2007 2006 < Decrease> $ 4,471,327 $ 4,332,301 $ 139,026 46,000 46,905 (905) - 7,116 (7,116) 184,488 88,833 95,655 15,000 23,000 (8,000) 100,000 100,000 - 3,000 5,000 (2,000) $ 4,819,814 $ 4,603,155 $ 216,659 421,959 $ 374,999 $ 46,960 1,538,590 1,405,114 133,476 410,797 368,468 42,329 1,454,791 1,546,512 (91,721) 1,088,306 1,031,613 56,693 501,066 321,157 179,909 89,224 75,341 13,883 $ 5,504,733 $ 5,123,204 $ 381,529 $ 1,378,681 $ 1,266,068 $ 112,613 796,502 718,126 78,376 560,430 540,230 20,200 18,500 18,400 100 1,144,954 954,338 190,616 301,895 188,039 113,856 928,020 928,754 (735) 50,000 400,000 (350,000) 325,750 109,250 216,500 $ 5,504,733 $ 5,123,205 $ 381,528 $ 4,612,192 $ 3,826,350 $ 785,842 (684,919) (520,049) (164,870) $ 3,927,273 $ 3,306,301 $ 620,972 City of Port Townsend 91 Water /Sewer Utility Fund Solid Waste Utility Function: To provide efficient solid waste collection for the residents of Port Townsend with uniform, managed collection for the preservation of public health and safety. The Solid Waste Utility collection and billing services are contracted to DM Disposal, Inc. Customer charges are collected to recover the costs of this service contract and the costs associated with the disposal of solid waste at the Jefferson County Waste Management Facility. The contractor bills the customers directly for the services provided based upon the current contract agreement rates. Goals and Objectives Goal: Provide an efficient and cost - effective solid waste collection system that meets essential health standards to preserve sanitary conditions throughout the city. Goal: To promote curbside recycling as a way to reduce the city's waste stream to solid waste landfills. 2006 Accomplishments Continued to provide the administrative functions needed by the Public Works Department and the city finance department in the management of the agreement between the city and DM Disposal, Inc. City of Port Townsend 92 Storm Water Utility Fund Storm Water Division (In conjunction with Streets/Wastewater) Function: To clean and maintain the Storm water Collection System to provide for the safe and efficient transmission of storm water to prevent damage to public and private property. Goals and Objectives Goal: Continue to maintain the Storm water Collection System in the most efficient and cost - effective manner possible. • Continue the use of Community Service Work Crews to provide clearing of vegetation from the storm water collection system (gutters). • Continue the installation of new catch basins that are needed throughout the system for better treatment of storm water. • Continue to assist the Engineering Department in evaluating storm water issues. • Identify shoulders that need to be pulled to allow water to get into drainage ditches (swales). This is to prevent damage to the streets by allowing the water to get away from the asphalt area. Goal: Adopt a Storm water Master Plan and implement approach decided by Council • Develop a scope of work to work towards getting the Draft Plan adopted by the Community and Council. Goal: Increase the percentage of storm systems cleaned annually. • Cleaned 90% of the system using a basin by basin approach to cleaning the entire storm water system. • Provide routine maintenance inspections for storm water collection facilities. • Performed contract maintenance on storm water filters at Washington & Taylor, Blaine & Tyler and SR20 & Thomas. • Mowed froggy bottoms storm water basin two times to maintain growth and noxious weeds. Performance Indicators 2004 2005 2006 as of 10/31/06 2007 Est. Number of citizen concerns received 10 16 19 15 Number of catch basins cleaned (in percent) 75 90 60 90 Number of Catch Basins (new or replaced) 9 15 2 10 Miles of street shoulders pulled for storm water control 1 1.5 1.0 2 Storm water piping installed, new or replaced, (Feet) 600 400 200 800 Number of catch basins in the storm water system 1010 1025 1231 * 1250 * = Updated information in the GIS System. City of Port Townsend 93 Stormwater Utility Fund State Revolving Fund Proceeds Total Revenues $ 560,650 $ 467,615 $ 93,035 Expenditures by Program Stormwater Operations $ 518,272 $ 411,503 $ 106,769 Capital Improvement Projects 17,074 132,500 (115,426) Total Expenditures $ 535,346 $ 544,003 $ (8,657) Expenditures by Obiect Personnel Budget Budget 153,063 $ 44,235 Year Year Increase 30,735 2007 2006 <Decrease> Revenues 51,585 3,168 Interfund Services Revenues from Utility Sales $ 540,006 $ 457,381 $ 82,625 Engineering Fees 4,300 4,255 45 Investment Interest 16,343 4,697 11,646 Miscellaneous Receipts - 1,282 (1,282) State Revolving Fund Proceeds Total Revenues $ 560,650 $ 467,615 $ 93,035 Expenditures by Program Stormwater Operations $ 518,272 $ 411,503 $ 106,769 Capital Improvement Projects 17,074 132,500 (115,426) Total Expenditures $ 535,346 $ 544,003 $ (8,657) Expenditures by Obiect Personnel $ 197,298 $ 153,063 $ 44,235 Supplies & Services 31,422 30,735 687 Utility Taxes 54,753 51,585 3,168 Interfund Services 126,379 121,017 5,362 Equipment Rental 99,707 55,103 44,604 Debt Service - - - CapitalOutlay 25,787 132,500 (106,713) Total Expenditures $ 535,346 $ 544,003 $ (8,657) Estimated Beginning Fund Balance 408,580 $ 234,843 $ 173,737 Increase <Decrease> in Fund Balance 25,304 (76,388) 101,692 Estimated Ending Fund Balance $ 433,884 $ 158,455 $ 275,429 City of Port Townsend 94 Equipment Rental Fund Equipment Rental Fund has two divisions starting in 2006. The first is the Fleet Division, which is a division under the Public Works Director and Operations Manager for Water, Fleet, and Facilities. This division manages the heavy equipment rental and replacement for each city department (inspection, excavation, grading, paving, sewer maintenance, etc.). The Fleet Division is supervised by a Crew Chief, who also has responsibilities for city facilities. The division has one mechanic. The fleet currently consists of approximately Revenues Revenues from Equipment Rentals -Fleet Revenues from Equipment Rentals -IT Federal Grant Income Miscellaneous Receipts Investment Interest 60 vehicles and 70 other pieces of motorized or hydraulic equipment. The second division is the Information Technology Division, which operates under the Finance Director's administration. Starting in 2006, the Equipment Rental Fund has added a new division for Information Technology (IT). The IT division will be responsible for all city computer information systems as well as other technology equipment. Budget Budget 11,773 Year Year Increase 2007 2006 <Decrease> $ 491,188 $ 498,892 $ (7,704) 159,208 73,660 85,548 65,013 - 65,013 112,400 - 112,400 30,165 25,348 4,817 Total Revenues $ 857,974 $ 597,900 $ 260,074 Expenditures by Proaram Operations and Maintenance -Fleet Division $ 541,124 $ 409,122 $ 132,002 Operations and Maintenance - Information Tech Division 123,337 73,660 49,677 Capital Asset Additions -Fleet Division 632,000 280,000 352,000 Capital Asset Additions - Information Tech Division 147,100 - 147,100 Total Expenditures Expenditures by Obiect Personnel Supplies & Services Interfund Services Capital Outlay Total Expenditures Estimated Beginning Fund Balance Increase <Decrease> in Fund Balance Estimated Ending Fund Balance $ 1,443,561 $ 762,782 $ 680,779 $ 191,112 $ 179,339 $ 11,773 232,861 151,218 81,643 240,488 152,225 88,263 779,100 280,000 499,100 $ 1,443,561 $ 762,782 $ 680,779 $ 854,115 $ 1,267,391 $ (413,276) (585,586) (164,882) (420,704) $ 268,529 $ 1,102,509 $ (833,980) City of Port Townsend 95 Firemen's Pension and Relief Fund Pension funds are used to account for financial resources to pay retiree benefits. "In order to make provisions for retirement and pension for members of the Port Townsend volunteer fire department" (Ord 1294 § 2, 1953), this fund was created to accumulate monies for pension benefits for members of the volunteer fire department that existed prior to the creation of the State's Law Enforcement Officer's and Fire Fighters' (LEOFF) Retirement System. The City has five remaining Fire Department retirees covered under this pension system (five persons are entitled to pension benefits and four are entitled Revenues Real Property Tax Fire Insurance Premium Tax Investment Interest Total Revenues Expenditures by Program Pension Benefits Total Expenditures Expenditures by Object Professional Services Interfund Services Pension Benefits Total Expenditures Estimated Beginning Fund Balance Increase <Decrease> in Fund Balance Estimated Ending Fund Balance to medical benefits). The remainder of the Fire Department firefighters are covered under the State's Retirement system. Budget Budget Year Year Increase 2007 2006 <Decrease> $ 71,000 $ 66,000 $ 5,000 7,411 7,514 (103) 11,783 5,954 5,829 $ 90,194 $ 79,468 $ 10,726 $ 80,679 $ 91,829 $ (11,150) $ 80,679 $ 91,829 $ (11,150) $ 7,000 $ 7,000 $ - 1,894 1,894 - 71,785 82,935 (11,150) $ 80,679 $ 91,829 $ (11,150) $ 294,582 $ 297,718 $ (3,136) 9,515 (12,361) 21,876 $ 304,097 $ 285,357 $ 18,740 City of Port Townsend 96 Transmission Line Replacement Fund The city established the Transmission Line Replacement Fund in 1956 to set aside moneys held in trust for system replacements or betterments to the Olympic Gravity Water System pipeline. This pipeline carries water from the Quilcene Rivers to the city. The trust fund was established 1956 for specific capital improvement purposes (Ordinance 1321). The Water Utility Fund contributes moneys each year to this trust fund to build up resources for future needs of the pipeline. Revenues Operating Transfers -in Investment Interest Total Revenues Expenditures by Program Capital Improvements Operations Total Expenditures Expenditures by Object Professional Services Interfund Charges Capital Outlay Total Expenditures Estimated Beginning Fund Balance Increase <Decrease> in Fund Balance Estimated Ending Fund Balance Budget Budget Year Year Increase 2007 2006 <Decrease> $ 50,000 $ 50,000 $ - 135,266 111,253 24,013 $ 185,266 $ 161,253 $ 24,013 110,000 $ 118,673 (8,673) $ 110,000 $ 118,673 $ (8,673) $ 100,000 $ 100,000 $ - 10,000 18,673 (8,673) $ 110,000 $ 118,673 $ (8,673) $ 3,731,640 $ 3,224,738 $ 506,902 75,266 42,580 32,686 $ 3,806,905 $ 3,267,318 $ 539,587 City of Port Townsend 97 Memorial Fund The city established the Memorial Fund in 1988 to accept any money or property donated, devised or bequeathed to it. This is a trust fund established to carry out the terms of the Revenues Contributions and Donations Investment Interest Total Revenues Expenditures by Program Operations & Maintenance Capital Improvements Total Expenditures Expenditures by Object Professional Services Capital Outlay Total Expenditures Estimated Beginning Fund Balance Increase <Decrease> in Fund Balance Estimated Ending Fund Balance donation, devise or bequest if within the powers granted by law (Ordinance 2016 and 1933). Budget Budget Year Year Increase 2007 2006 <Decrease> 807 87 720 $ 807 $ 87 $ 720 $ 20,176 $ 4,373 $ 15,803 807 87 720 $ 20,983 $ 4,460 $ 16,523 City of Port Townsend 98 Golf Course Fund The city established the Golf Course Fund in 2006 to set aside moneys for long -term care and maintenance of the city golf course. Lease income from lease of the golf facilities are deposited into this fund. Revenues Contributions and Donations Facility Rentals - Long Term Investment Interest Total Revenues Expenditures by Program Operations & Maintenance Capital Improvements Total Expenditures Expenditures by Object Professional Services Capital Outlay Total Expenditures Estimated Beginning Fund Balance Increase <Decrease> in Fund Balance Estimated Ending Fund Balance Budget Budget Year Year Increase 2007 2006 <Decrease> 26,000 29,000 (3,000) $ 26,000 $ 29,000 $ (3,000) $ 2,000 $ - $ 2,000 20,000 20,000 - $ 22,000 $ 20,000 $ 2,000 $ 22,000 20,000 2,000 $ 22,000 $ 20,000 $ 2,000 $ 6,000 $ - $ 6,000 4,000 9,000 (5,000) $ 10,000 $ 9,000 $ 1,000 City of Port Townsend 99 Budget Calendar February 27, 2006 City Manager meets with City Council to review initiatives June 5, 2006 City Manager meets with Finance Department to review budget matters July 7, 2006 Finance Director drafts budget calendar July 18, 2006 City Manager meets with Council Finance/Budget Committee to review budget issues July 28, 2006 Finance Director updates estimated revenues from state shared revenues (MRSC budget projections available first of August). August 15, 2006 Finance Director provides departments with budget instruction packet for preparing preliminary budget estimates. 2nd half August City Manager meets with department directors to review budget requests and compare to Council stated goals and objectives. (Must be on or by first business day in the third month prior to beginning of the fiscal year) August 31, 2006 Finance Director requests all departments prepare budget estimates for revenues, operating and maintenance expenditures, capital expenditures, equipment rental expenditures, city contracts, grant awards, and budget carryovers from prior year. (Must be by fourth Monday in September) August 31, 2006 Finance Director estimates beginning fund balances for next year. September 5, 2006 Finance Director notifies all departments to submit their budget requests within 14 days — estimated revenues and expenditures. (Must be by fourth Monday in September) September 5, 2006 Notify Non - profit service providers submit budget request to City Manager by September 15. September 15, 2006 Finance Director provides Proposed Preliminary Budget to City Manager. (Draft preliminary budget provided to City Manager no later than first business day in October) September 15, 2006 City Manager provides current information on estimates of revenues from all sources as adopted in current budget to City Council. (No later than the first Monday in October). City Manager also provides the City Council with Finance Director's Proposed Preliminary Budget setting forth the complete financial program, showing expenditures requested by each department and City of Port Townsend 100 Budget Calendar sources of revenue by which each such program is proposed to be financed. September 15, 2006 City Council Finance Committee reviews revenue sources for the coming year's budget, including consideration of possible increases in property tax revenues. (Must be before Council votes on property tax levy) September 19, 2006 Department Directors file their budget estimates with Finance Director and City Clerk. All departments shall submit detailed estimates of expenditures to be financed with debt or warrants, and the proposed source of funding. (Must be by fourth Monday in September) September 29, 2006 City Manager files Preliminary Budget with City Clerk and City Council. (At least 60 days before ensuing fiscal year) November 1, 2006 City Clerk publishes Notice of Public Hearing on city tax levy for 2007. November 1, 2006 City Clerk publishes notice of filing of City Manager's Preliminary Budget, and notice of public hearing on final budget. (No later than the first two consecutive weeks in November) November 6, 2006 City Council holds public hearing and sets property tax levies by ordinance. (Must be done on, or before November 15) November 6, 2006 City Manager's Preliminary Budget provided to public. (No later than six weeks before January 1) November 20, 2006 City Council holds final hearing on proposed budget. (Must be on or before frrstMonday of December, and may be continued to not later than the 25th day (December 7) prior to next fiscal year) December 4, 2006 City Council makes final adjustments and adopts budget by ordinance. (Following the public hearing and prior to the beginning of the ensuing fiscal year - no later than December 31) January 2007 Copies of adopted budget available to the public. (Must be within 30 days of adoption) March 2007 Council meet to set city goals for fiscal year 2008. City of Port Townsend 101 Statutory Legal Debt Margin Computation of Legal Debt Margin General Purposes - Non Voted and Voted Debt Capacity Non -Voted Voted Description Bonds Bonds 2007 Assessed Value (AV) _ $1,193,600,895 2.5 % of AV 1.5% of AV STATUTORY DEBT LIMIT Less Debt Outstanding: Bonds Issued Add amount available in Debt Service Fund REMANING DEBT CAPACITY $ 29,840,022 $ 17,904,013 $ 17,904,013 $ 29,840,022 $ (7,658,606) $ (7,658,606) $ 58,989 $ 58,989 $ 10,304,396 $ 22,240,405 City of Port Townsend 102 Statutory Legal Debt Margin Total Non -voted Debt Capacity Outstanding Debt 42% Remaining Capacity 58% (: Total Voted Debt Capacity Outstanding Debt 25% Remaining Capacity 75% City of Port Townsend 103 ti 0 0 N V �L 0 d NN� L7. d J X H O 0- 0 LL c O co N N c O A L � OR O O co (n U O J U) G w O 3 0 h 0 a w 0 U r 0 N_ 20 4w c co d a+ ca d � J d K N � N H d d � Q 0 20 IL 0 0 d69. r L V Q i O O O O O O In O In O In O N N O O 3 3 3 3 6r3 6r3 O O N I LO O O N V O O N Cl) O O N N O O N 0 O N O O O N rn 00 O O r rn rn LO rn rn v rn � O o � h 0 a w 0 T U Personnel Services The City of Port Townsend provides quality services and programs for its citizens with a responsive staff of 77 full - time and 29 part-time budgeted positions for 2007. Port Townsend has a competitive, market -based salary and benefits. Salary and benefits make up a major portion of the operating budgets. The Police and General bargaining unit employees received a COLA increase in January 2007 of 3 %. The General bargaining unit employees received an additional 2% market adjustment increase. Non - represented employees received a COLA increase in January 2007 of 3 %. Benefits for regular status full -time employees include vacation and sick leave and paid holidays. Employees may qualify for additional types of leave such as jury, emergency, bereavement, military and family medical leave. The City provides comprehensive benefits to its retired LEOFF I employees. Police, bargaining unit employees and non - represented employees participate in the Social Security program and the city matches their contributions (7.65 %). Substantially all City full -time and qualifying part-time employees participate in either the Public Employees Retirement System (PERS) or the Law Enforcement Officer's and Firefighters Retirement System (LEOFF). PERS and LEOFF are statewide local government retirement systems administered by the Department of Retirement Systems. Pension Rate of Contribution Plan Citv Employee Total LEOFF II 4.90% 7.85% 12.75% PERS I 5.46% 6.00% 11.46% PERS II 5.46% 3.50% 8.96% PERS III 5.46% variable variable The City of Port Townsend pays $809.62 for medical, dental and vision coverage for employees in the general government and $932.92 for police bargaining units. Police and General government employees pay 10% towards their medical for dependents. The City funds positions at their full annual cost for budgetary purposes even if it is projected that vacancies might occur. It is the City Council's objective to provide sufficient funding for recruiting and maintaining highly qualified personnel. BARGAINING UNITS • General Government Teamsters Local 589 (41 members, contract expires December 31, 2008) • Police Department Teamsters Local 589 (12 members, contract expires December 31, 2007) LABOR RELATIONS The City employees who are eligible under state law to be represented by a Labor organization are employed under provisions on such matters as salaries, vacation, sick leave, medical and dental insurance, working conditions and grievance procedures. The City strives to complete these agreements in a timely manner, consistent with all applicable state laws and promote labor relations policies mutually beneficial to administrative management and employees. City of Port Townsend 106 Personnel Services Police Department Officer Salary Schedule Classification Minimum Hourly Maximum Hourly Police Sergeant $26.86 $30.39 Police Officer $22.76 $25.76 Library Department Non - represented Salary Schedule Classification Minimum Maximum Manager $3846.46 $4701.22 Assoc. Librarian $3228.64 $3946.11 Sr. Associate 11 $16.87 $20.62 Senior Associate $15.61 $19.08 Library Associate $13.78 $16.84 Assistant $12.51 $15.28 Processing Tech. $11.40 $13.94 Courier/Page $9.67 $11.81 Page $7.93 $9.69 General Government Salary Schedule Classification Minimum Monthly Maximum Monthly Equipment Operator 1 $3351.72 $3793.25 Equipment Operator 2 $3427.85 $3879.41 Maintenance Worker 1 $2814.68 $3185.47 Maintenance Worker 2 $2980.48 $3373.11 Lead Equipment Operator $3896.01 $4409.23 Crew Chief- St/WWC /Storm $4228.42 $4785.45 Crew Chief -Water Dist. $4228.42 $4785.45 Park Crew Supervisor $3741.89 $4234.82 Park Assistant $2799.42 $3168.20 Crew Chief - Support Service $4228.42 $4785.45 Treatment Plant Operator 1 $3185.34 $3604.97 Treatment Plant Operator 2 $3427.85 $3879.41 Assist. Treatment Plant Operator $3039.00 $3439.34 Water Resource Asset Mgr $4228.42 $4785.45 GIS Coordinator $4014.96 $4543.85 Classification Minimum Monthly Maximum Monthly PW Assistant Admin. Mgr. $2829.36 $3202.09 Public Works Office Lead $3553.64 $4021.78 Public Works Assistant 1 $2379.51 $2692.96 Public Works Assistant 2 $2604.43 $2947.52 Land Use Specialist $3596.37 $4070.14 Land Use Specialist/ Development Review $3596.37 $4070.14 Public Works Receptionist $2379.51 $2692.96 Public Works Inspector $4014.95 $4543.85 Mechanic $3495.50 $3955.98 Engineering Technician 1 $3165.47 $3582.47 Engineering Assistant 3 $3380.45 $3825.77 Police Admin. Supervisor $3322.51 $3760.20 Police Clerk $2689.59 $3043.90 Parking Enforcement/Prop $2824.02 $3196.04 Proj ect/Grant Accountant $3579.07 $4050.54 Accounting Assistant 1 $2851.87 $3227.55 Accounting Assistant 2 $3022.97 $3421.20 Utility Billing Clerk $2851.87 $3227.55 Lead Utility Billing Clerk $3182.24 $3601.45 Customer Service Rep. $2439.54 $2760.91 Code Enforcement/Plan Review/Bldg. Inspector 1 $3646.59 $4126.97 Code Enforcement/Plan Review/Bldg. Inspector 2 $3782.43 $4280.70 Permit Coordinator $3782.43 $4280.70 Permit Technician $3129.70 $3541.99 Building Official $4081.89 $4619.62 DSD Administrative Assist. $2919.05 $3303.59 Custodian $2650.32 $2999.46 Event Coordinator $2568.08 $2906.38 IS Network Administrator $4778.61 $5408.12 *These tables represent base salaries and do not include longevity, or incentive pay. They may also not be currently staffed or filled. City of Port Townsend 107 Personnel Services Elected Officials Salary Schedule Classification Annual Salary Mayor $9,000 Council Members $6,000 Non - represented Staff Salary Schedule Classification Minimum Monthly Maximum Monthly City Manager $7442.08 $9095.88 City Attorney $6179.14 $7552.28 City Clerk $4580.10 $5597.90 DSD Director $5827.12 $7122.04 Planning Director $5827.12 $7122.04 Public Works Director $6264.98 $7657.20 Finance Director $6247.62 $7635.98 Deputy Finance Director $4532.84 $5540.14 Library Director $5179.02 $6329.92 Police Chief $6075.95 $7426.16 Deputy Police Chief $5027.61 $6144.85 Payroll/Benefits Administrator $3340.92 $4083.34 Legal Assistant $3066.90 $3748.44 Deputy City Clerk $3724.65 $4552.35 Senior Planner $4903.19 $5992.79 Planner 2 $4241.59 $5184.17 City Engineer $5251.36 $6418.32 Project/Civil Engineer $4849.18 $5926.78 Development Review Engineer $5062.65 $6187.69 Public Works Operations Manager $4681.37 $5721.67 Pool Manager $2923.69 $3573.39 Admin. Assistant $3153.71 $3854.53 Public Safety Analyst $3827.11 $4677.57 Building Official $4887.14 $5973.18 City of Port Townsend 108 w N ai O _O C� O Q" O O i W H W O O C� N i. O I V1 V h O a T U O 000000000000 O M I` 0 0 0 0 0 0 0 O s U O O O O M O M O O M O M LO O O M O O 00 Cfl O ~ O N N O M LO M N O O O N O O M O'T N I- O O O N O O O O Cfl N M O O M O LO O M I'- M O O O M O O O O N N O M M N O O O M I-- M O"i N I- O O O � M � N F O O O O M O MLr) M O M O I` O N M M O L O M T T Lf) O O N N M N LO '�T N 00 00 Cfl CO M O N CO O O O M N NT O O O M O O LO M O M O 00 O O LO O O O M I- �T O O N N 00 N Cfl C-j N 0 0 0 0 M N Lo O� O� N Lo 0 0 O N O O O M O M O M O M O T M N M O LO O LO M T M O O N N I- N LO N N 00 00 NT N M M M O NT N M M O O M N M M M O O M O N O O 1` M N LO — I'- — LO M N p O N N N N 0 0 0 0 M CO 00 N co co N"T 00 O N ' L 0 0 0 0 0 0 M M N CO O Cfl I- — O M C O N N I- O N 0 0 0 0 M M'� M N N M M LO I-- O N 0 0 LO LO 0 LO NT 00 O O O 1` �T N � OU') O O O N 00 O co 00 co O co N co � co co O co N O O M O O LO T CO CO M O LO LO LO O LO CO O O N CO O Cfl 00 N M N'�T LO O r O O Cfl NT co L Cfl M Cfl O O LO LO LO O co O N O 00 CO 00 N O 1 "1 U-) O 00 O r O 3 �. 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M N LO 'T N M N N N 00 O O M LO LO LO Lq M Lq (D N M N N N N m O H O N U E 0 N O O U N cu U (6 L L N N .� �. _ (6 J N Q' 0 0 � � � � � rn N � N m L L Q� Q� 0 y+ L cv a) p U E N CU CU (6 (6 »mLi >� >((OW �� » U) 0 0 0 0 0- E 0 0 0) m m 3 h 0 a U Glossary ACCOUNTING SYSTEM: The total set of records and procedures that are used to record, classify, and report information on the financial status and operations of an entity. ACCOUNTS PAYABLE: A short-term liability account reflecting amounts owed to private persons or organizations for goods and services received by a government. ACCOUNTS RECEIVABLE: An asset account reflecting amounts due from private persons or organizations for goods and services furnished by a government (but not including amounts due from other funds or other governments). ACCRUAL BASIS OF ACCOUNTING: The method of accounting under which revenues are recorded when they are earned (whether or not cash is received (whether cash disbursements are made at that time or not). ACCUMULATED DEPRECIATION: A contra -asset account used to report the accumulation of periodic credits to reflect the expiration of the estimated service life of fixed accounts. AD VALOREM TAXES: A tax levied on the assessed value of real property. AGENCY FUND: A fund used to account for assets held by a government as an agent for individuals, private organizations, other governments and /or other funds. ALLOCATION: To set aside or designate funds for specific purposes An allocation does not authorize the expenditure of funds. AMORTIZATION: (1) The portion of the cost of a limited life or intangible asset charged as an expense during a particular period. (2) The reduction of debt by regular payments of principal and interest sufficient to retire the debt by maturity. ANNUAL DEBT SERVICE: The amount required to be paid in a calendar year for (1) interest on all Parity Bonds then outstanding; (2) principal of all Parity Bonds then outstanding, but excluding any outstanding Term Bonds, and (3) payments into any Sinking Fund Account for the amortization of outstanding Parity Bonds divided by the number of calendar years to the last maturity or mandatory redemption date thereof. ANNUAL FINANCIAL REPORT: The official annual report of a government. It includes (a) the five combined financial statements in the combined statements - overview and their related notes and (b) combined statements by fund type and individual fund and account group financial statements prepared in conformity with GAAP and organized into a financial reporting pyramid. It also includes supporting schedules necessary to demonstrate compliance with finance - regulated legal and contractual provisions, required supplementary information, extensive introductory material and a detailed statistical section. APPROPRIATION: An authorization made by the City Council, which permits officials to incur obligations against and to make expenditures of governmental resources. Appropriations are usually made for fixed amounts and are typically granted for a one -year period. City of Port Townsend 111 Glossary APPROPRIATIONS ORDINANCE: The official enactment by the City Council establishing the legal authority for City officials to obligate and expend resources. ASSESSED VALUATION: The estimated value placed upon real and personal property by the Jefferson County Assessor as the basis for levying property taxes. ASSETS: Property owned by a government, which has monetary value. AUDIT: A systematic examination of resource utilization concluding in a written report. It is a test of management's internal accounting controls and is intended to: * ascertain whether financial statements fairly present financial position and result of operations; * test whether transactions have been legally performed; * identify areas for possible improvements in accounting practices and procedures, * ascertain whether transactions have been recorded accurately and consistently; and * ascertain the stewardship of officials responsible for governmental resources. AUDITOR'S REPORT: In the context of a financial audit, a statement by the auditor describing the scope of the audit and the auditing standards applied in the examination and setting forth the auditor's opinion on the fairness of presentation of the financial information in conformity with generally accepted accounting practices or some other comprehensive basis system of accounting. BALANCE SHEET: A statement presenting the financial position of an entity by disclosing the value of its assets, liabilities, and equities as of a specified date. BARS: The State of Washington prescribed Budgeting, Accounting Reporting System Manual required for all governmental entities in the state of Washington. BASE BUDGET: Ongoing expense for personnel, contractual services, and the replacement of supplies and equipment required to maintain service levels previously authorized by the City Council. BASIC FINANCIAL STATEMENTS: Those financial statements, including notes thereto, necessary for the fair presentation of the financial position and results of operations of an entity in conformity with GAAP. The basic financial statements include a balance sheet, an "all- inclusive" operating statement, a budget comparison statement (for all government funds for which annual appropriated budgets are adopted), and a statement of changes in financial position (for proprietary funds, pension trust funds and non - expendable trust funds). BASIS OF ACCOUNTING: A term used to refer to when revenues, expenditures, expenses and transfers - and the related assets and liabilities - are recognized in the accounts and reported in the financial statements. Specifically, it relates to the timing of the measurements made, regardless of the City of Port Townsend 112 Glossary nature of the measurement, on either the cash or accrual method. BOND: (Debt Instrument) A written promise to pay (debt) a specified sum of money (called principal or face value) at a specified future date (called the maturity date) along with periodic interest paid at a specified percentage of the principal (interest rate). Bonds are typically used for long -term debt to pay for specific capital expenditures. BOND ANTICIPATION NOTES: (BANS) Short- term interest - bearing notes issued in anticipation of bonds to be issued at a later date. The notes are retired from proceeds of the bond issue from which they are related. BOND REGISTRAR: The fiscal agency of the State of Washington in either Seattle, Washington, or New York, New York, for the purposes of registering and authenticating the bonds, maintaining the bonds, maintaining the bond register, effecting transfer of ownership of the bonds and paying interest on the principal of (and any premium pursuant to call on) the bonds. BUDGET (Operating): A plan of financial operation embodying an estimate of proposed expenditures for a given period (typically a fiscal year) and the proposed means of financing them (revenue estimates). The term is also sometimes used to denote the officially approved expenditure ceilings under which the City and its departments operate. BUDGET CALENDAR: The schedule of key dates or milestones, which the City follows in the preparation and adoption of the budget. BUDGET DOCUMENT: The official written statement prepared by the Finance Department and supporting staff for the city manager to present the proposed budget to the City Comic CAPITAL ASSETS: Assets of significant value and having a useful life of several years. Capital assets are also called fixed assets. CAPITAL BUDGET: A plan of proposed capital expenditures and the means of financing them. The capital budget may be enacted as part of the complete annual budget including both operating and capital outlays. The capital budget is based on the Capital Improvement Plan (CIP). CAPITAL IMPROVEMENT PROGRAM: A plan of proposed capital expenditures to be incurred each year over a period of six future years setting forth each capital project, identifying the expected beginning and ending date for each project, the amount to be expended in each year, and the method of financing those expenditures. CAPITAL PROGRAM: A plan for capital expenditures to be incurred each year over a fixed period of years to meet capital needs arising from the long -term work program or otherwise. It sets forth each project or other contemplated expenditure in which the government is to have a part and specifies the full resources estimated to be available to finance the projected public facilities. CAPITAL OUTLAY: Expenditures, which result in the acquisition of or additions to fixed assets. Examples include land, buildings, machinery and equipment, and construction projects. City of Port Townsend 113 Glossary CAPITAL PROJECTS: Projects, which purchase or construct capital assets. Typically, a capital project encompasses a purchase of land or construction of a building or facility, with a life expectancy of more than 10 years. CASH BASIS: The method of accounting under which revenues are recorded when received in cash and expenditures are recorded when paid. CASH FLOW BUDGET: (CASH BUDGET) A projection of the cash receipts and disbursements anticipated during a given time period. CDBG: Community Development Block Grants - grant funds administered through Department of Community Trade and Economic Development (CTED) of the State of Washington. CENTENNIAL CLEAN WATER PROGRAM: (CCWP) In 1986, legislation was passed which provides grants to public entities for financing water pollution control activities and facilities to protect surface and underground water from pollution. In addition, a state revolving loan program was established to provide loans or combinations of grants /loans to finance public facilities. CERTIFICATE OF DEPOSIT: A negotiable or non - negotiable receipt for monies deposited in a bank or other financial institution for a specified period for a specified rate of interest. COLA: Cost of Living Allowance COMMUNITY PARK: Those parks so designated in the City of Port Townsend Parks and Recreation Plan. CONCURRENT OR CONCURRENCY: The improvements that are in place at the time the impacts of development occur, or that the necessary financial commitments are in place. Public facilities and services shall be adequate to serve the development at the time the development is available for occupancy and use without decreasing current service levels below locally established minimum standards. CONTINGENCY: A budgetary reserve set -aside for emergencies or unforeseen expenditures not otherwise budgeted for. COST ACCOUNTING: Accounting that assembles and records all costs incurred to carry out a particular activity or to deliver a particular service. COUNCILMANIC BONDS: Councilmanic bonds refer to bonds issued with the approval of the Council, as opposed to voted bonds that must be approved by vote of the public. Councilmanic bonds must not exceed 1.50 percent of the assessed valuation, and voted bonds 2.50 percent. CPI: Consumer Price Index is a measure of the change in prices over time for a fixed market basket of goods and services. DEBT: An obligation resulting from the borrowing of money or from the purchase of goods and services. Debts of governments include bonds, time warrants and notes. DEBT LIMITS: The maximum amount of gross or net debt, which is legally permitted. DEBT SERVICE: Payment of interest and repayment of principal to holders of City of Port Townsend 114 Glossary the City's debt instruments. DEBT SERVICE FUND: A fund established to account for the accumulation of resources for, and the payment of, general long- term debt principal and interest. DEFICIT: (1) The excess of an entity's liabilities over its assets (See Fund Balances). (2) The excess of expenditures or expenses over revenues during a single accounting period. DELINQUENT TAXES: Taxes remaining unpaid on and after the date to which a penalty for nonpayment is attached. Even though the penalty may be subsequently waived and a portion of the taxes may be abated or canceled, the unpaid balances continue to be delinquent taxes until abated, canceled, paid or converted into tax liens. DEMAND DEPOSIT: A bank deposit of monies that are payable by the bank upon demand to the depositor. DEPRECIATION: (1) Expiration in the service life of capital assets attributable to wear and tear, deterioration, action of the physical elements, inadequacy or obsolescence. (2) That portion of the cost of a capital asset, which is charged as an expense during a particular period. DEVELOPMENT ACTIVITY: Any construction or expansion of a building, structure, or use, any change in use of a building or structure, or any change in the use of land, that creates additional demand and need for public facilities. DOUBLE BUDGETING: The result of having funds or departments within a government purchase services from one another rather than from outside vendors. When internal purchasing occurs, both funds must budget the expenditure (one to buy the service and the other to add the resources to its budget so they have something to sell). This type of transaction results in inflated budget values because the same expenditure dollar is budgeted twice: once in each fund's budget. The revenue side of both funds is similarly inflated. DUE FROM OTHER FUNDS: An asset account used to indicate amounts owed to a particular fund by another fund for goods or services rendered. This account includes only short-term obligations on open account, not interfund loans. ENCUMBRANCES: Obligations in the form of purchase orders, contracts or salary commitments that are chargeable to an appropriation and for which a part of the appropriation is reserved. They cease to be encumbrances when paid or when an actual liability is set up. ENDING FUND BALANCE: The cash balance remaining at the end of the fiscal year available for appropriation in future years. ENTERPRISE FUND: Separate financial accounting used for government operations that are financed and operate in a manner similar to business enterprises, and for which preparation of an income statement is desirable. EQUIPMENT RENTAL: The Equipment Rental Fund operates as a self - sufficient motor and equipment pool. Customer departments pay for the equipment used through charges billed monthly. These charges include a form of depreciation, which is accumulated as City of Port Townsend 115 Glossary a sinking fund for future asset replacement, a factor for maintenance of the equipment, and charges for fuel (if applicable). EXPENDITURES: Where accounts are kept on the accrual or modified accrual basis of accounting, the cost of goods received or services rendered whether cash payments have been made or not. Where accounts are kept on a cash basis, expenditures are recognized only when the cash payments for the above purposes are made. FEDERAL AID URBAN SYSTEM: (FADS) Provides funds for the construction, reconstruction, and improvement of urban streets and roads A local match of 16.6 percent is required. FEE IN LIEU OF: (FILO) Charges are contributions made by developers toward future improvements of City facilities resulting from the additional demand on the City's facilities generated from the development. FISCAL YEAR: A twelve (12) month period designated as the operating year by an entity. For Port Townsend, the fiscal year is the same as the calendar year (also called budget year). FIXED ASSETS: Long- lived tangible assets obtained or controlled as a result of past transactions, events or circumstances. Fixed assets include buildings, equipment, improvements other than buildings and land. FLOAT: The amount of money represented by warrants outstanding and in the process of collection. FULL FAITH AND CREDIT: A pledge of the general taxing power of a government to repay debt obligations (typically used in reference to bonds). FTE: Full -time equivalent employee. FUND: An independent fiscal and accounting entity with a self - balancing set of accounts recording cash and /or other resources together with all related liabilities, obligations, reserves, and equities which are segregated for the purpose of carrying on specific activities or attaining certain objectives. FUND BALANCE: The excess of an entity's assets over its liabilities. A negative fund balance is sometimes called a deficit. GAAFR: Governmental Accounting, Auditing and Financial Reporting. The "blue book" published by the Government Finance Officers Association to provide guidance for the application of accounting principles for governments. GAAP: Generally Accepted Accounting Principles are standards used for accounting and reporting used for both private industry and governments. GASB: Government Accounting Standards Board, established in 1985, to regulate the rules and standards for all governmental units. GENERAL FIXED ASSETS: Capital assets that are not a part of any fund, but of the government unit as a whole. Most often these assets arise from the expenditure of the financial resources of governmental funds. GENERAL FUND: The fund supported by taxes, fees and other revenues that City of Port Townsend 116 Glossary may be used for any lawful purpose GENERAL OBLIGATION BONDS: Bonds for which the full faith and credit of the insuring government are pledged for payment. GOALS: The objective of specific tasks and endeavors. GRANT: A contribution of assets (usually cash) by one governmental unit or other organization to another. Typically, these contributions are made to local governments from the State and Federal governments. Grants are usually made for specified purposes. GUARANTY FUND: A fund established by a bond issuer, which is pledged, as security for the payment of one or more bond issues. Normally used for local improvement districts (LID). IAC: Interagency Committee for Outdoor Recreation. IMPACT FEES: A fee assessed on new development that creates additional demand and need for public facilities. INFRASTRUCTURE: Assets that are the underlying foundation especially the basic installations and facilities on which the continuance and growth of a jurisdiction depends (streets, roads, sewer, and water systems). INTERFUND PAYMENTS: Expenditures made to other funds for services rendered. This category includes interfund repairs and maintenance. INTERGOVERNMENTAL COSTS: Costs or expenses paid from one government to another government for services. These costs include but are not limited to such things as: dispatch and jail services, animal control services, audit and voter costs. INTERGOVERNMENTAL SERVICES: Intergovernmental purchases of those specialized services typically performed by local governments. INTERNAL CONTROL: A plan of organization for purchasing, accounting, and other financial activities, which, among other things, provides that: * The duties of employees are subdivided so that no single employee handles financial action from beginning to end, * Proper authorization from specific responsible officials are obtained before key steps in the processing of a transaction are completed. * Records and procedures are arranged appropriately to facilitate effective control. INTERNAL SERVICE FUND: Funds used to account for the financing of goods or services provided by one department or agency to other departments or agencies of the City, or to other governments, on a cost - reimbursement basis. INVESTMENT: Securities and real estate purchased and held for the production of income in the form of interest, dividends, rentals and base payments. IPD: Implicit Price Deflator. LATECOMER FEES: Fees paid by developers or future service users for their share of past improvements City of Port Townsend 117 Glossary financed by others. LEASING: A financial technique whereby ownership of the projector equipment remains with the financing entity, and where title may or may not transfer to the City at the end of the lease. LEOFF: Law Enforcement Officers and Firefighters Retirement System provided in the State of Washington. LEVY: (1) To impose taxes, special assessments or service charges for the support of government activities. (2) The total amount of taxes, special assessments or service charges imposed by a government. LEVY LID: A statutory restriction on the annual increase in the amount of property tax a given public jurisdiction can assess on regular or excess levies. LIABILITY: Debt or other legal obligations arising out of transactions in the past that must be liquidated, renewed or refunded at some future date. LID: Local Improvement District for special assessments made against certain properties to defray part or all of the cost of a specific improvement or service deemed to primarily benefit those properties. MATURITIES: The dates on which the principal or stated values of investments or debt obligations mature and may be reclaimed. MILL: The property tax rate, which is based on the valuation of property. A tax rate of one mill produces one dollar of taxes on each $1,000 of property valuation. MITIGATION FEES: Contributions made by developers toward future improvements of city facilities resulting from the additional demand on the city's facilities generated from the development. MODIFIED ACCRUAL BASIS: The basis of accounting under which expenditures, other than accrued interest on general long -term debt, are recorded at the time liabilities are incurred and revenues are recorded when received in cash except for material and /or available revenues, which should be accrued to reflect properly the taxes levied and revenue earned. NET REVENUE: The revenue of the system less the cost of maintenance and operation of the system. NOTES TO THE FINANCIAL STATEMENTS: The disclosures required for a fair presentation of the financial statements of government in conformity with GAAP and not included on the face of the financial statements themselves. The notes to the financial part of the GPFS /CUFS. OBJECT: As used in expenditure classification, this term applies to the type of item purchased or the service obtained (as distinguished from the results obtained from expenditures). OPERATING FUNDS: Resources derived from recurring revenue sources used to finance ongoing operating expenditures and pay -as- you -go capital proj ects. OPERATING TRANSFER: Routine and /or recurring transfers of assets between funds. City of Port Townsend 118 Glossary ORDINANCE: A statute or regulation enacted by City Council. OTHER SERVICES AND CHARGES: A basic classification for services, other than personnel services, which are needed by the City. This item includes professional services, communication, travel, advertising, training, dues and subscriptions, printing, equipment rental and costs (ER &R), insurance, public utility services, repairs and maintenance. PARITY BOND: Any and all water and sewer revenue bonds of the City the payment of which, both principal and interest, constitutes a lien and charge upon the revenue of the system and upon assessments equal in rank with the lien and charge on such revenue of the system and assessments for payments required to pay and secure the payment of the bonds. PERS: Public Employees Retirement System provided for, other than Police and Fire, by the State of Washington. PERSONNEL BENEFITS: Those benefits paid by the City as part of the conditions of employment. Examples include insurance & retirement benefits. PERSONNEL COSTS: Costs that include all salaries, wages, and benefits for all part-time, full -time, seasonal and temporary employee costs. PROCLAMATION: An official act by the Mayor or Executive Officer made through a public forum. PROGRAM: A specific and distinguishable unit of work or service performed. PROGRAM ENHANCEMENT: Programs, activities or personnel requested to improve or add to the current baseline services. PROGRAM MEASURES: A unit of standard used for the quantitative comparison in the manner of functioning to capacity or quantity as determined. PROGRAM REVENUE: These are revenues that are produced as a result of an activity of a program and are subject to quantity of services provided to the public or governmental units (i.e. permits, charges for fire services, recreational activities), or revenues dedicated to a specific use (i.e. grants taxes or debt funds). PROPRIETARY FUND TYPES: Sometimes referred to as income determination or commercial -type funds, the classification used to account for a government's ongoing organizations and activities that are similar to those often found in the private sector. The GAAP used are generally those applicable to similar businesses in the private sector and the measurement focus is on determination of net income, financial position and changes in financial position. PUBLIC FACILITIES: The capital owned or operated by the City or other governmental entities. PUBLIC WORKS TRUST FUND: (PWTF) Is a low- interest revolving loan fund which helps local governments finance critical public works needs. To be eligible for trust fund financing, the applicant must be a local government entity, with a long -term plan for financing public works needs. If the applicant is a city or county, it must be imposing the optional one - quarter City of Port Townsend 119 Glossary percent real estate excise tax for capital purposes. Eligible projects include streets and roads, bridges, storm sewers, sanitary sewers, and water systems. Loans will only be made for the purpose of repair, replacement, reconstruction, or improvement of existing eligible public works systems to meet current standards and to adequately serve the needs of the existing populations. New capital improvement projects are not eligible. The maximum loan amount has been two million with a minimum local match of ten percent. Interest rates vary from one to three percent, depending on the match. RCW: Revised Code of Washington. Laws of the State of Washington enacted by the State Legislature. BEET: (Real Estate Excise Tax) A tax upon the sale of real property from one person or company to another. RESERVE: An account used to indicate that a portion of fund equity is legally restricted for a specific purpose. RESOLUTION: A formal statement of a decision or expression of an opinion of the City Council. RESOURCES: Total dollars available for appropriations including estimated revenues, fund transfers, and beginning fund balances. RETAINED EARNINGS: An equity account reflecting the accumulated earnings of the City's proprietary funds REVENUE: income received by the City in support of a program of services to the community. It includes such items as property taxes, fees, user charges, grants, fines and forfeits, interest income and miscellaneous revenue. REVENUE BONDS: Bond issued pledging future revenues, usually water, sewer or drainage charges, to cover debt payments. REVENUE ESTIMATE: A formal estimate of how much revenue will be earned from a specific revenue source for some future period, typically, a future fiscal year. STP: Surface Transportation Program. STPE: Surface Transportation Program - Enhancement. STPH: Surface Transportation Program - Hazard Elimination STPUS: Surface Transportation Program - Urban Small. SALARIES AND WAGES: Amounts paid for personal services rendered by employees in accordance with rates, hours, terms and conditions authorized by law or stated in employment contracts. SERVICE MEASURES: Specific quantitative measures of work performed within an activity or program (e.g., total miles of street cleaned). Also, a specific quantitative measure of results obtained through a program or activity (e.g., reduced incidence of vandalism due to new street lighting program). SINGLE AUDIT: An audit performed in accordance with the Single Audit Act of 1984 and office of Management and Budget (OMB) Circular A -128, Audits of State and Local Governments. The Single Audit Act allows or requires governments (depending on the amount City of Port Townsend 120 Glossary of federal assistance received) to have one audit performed to meet the needs of all federal grantor agencies. SINKING FUND ACCOUNT: An account created in the bond fund to amortize the principal of term bonds. SPECIAL ASSESSMENT: A compulsory levy made against certain properties from earnings of enterprise funds. In addition to a pledge of revenues, such bonds sometimes contain a mortgage on the enterprise fund's property. SPECIAL REVENUE FUND: A fund used to account for the proceeds of specific revenue sources that are legally restricted to expenditure or specified purposes. SUPPLEMENTAL APPROPRIATION: An appropriation approved by the Council after the initial budget appropriation. SUPPLIES: A basic classification of expenditures for articles and commodities purchased for consumption or resale. Examples include office and operating supplies, fuel, power, water, gas, inventory or resale items, and small tools and equipment. SURETY BOND: Any letter of credit, insurance policy, surety bond or other equivalent credit facility or any combination thereof issued to the City to satisfy all or part of the amount required to be maintained in the Reserve Account to make such payments of principal and interest as the same become due at maturity or on any mandatory redemption date. TIA: Transportation Improvement Account. TAX: Charge levied by a government to finance services performed for the common benefit. TAX ANTICIPATION NOTES: (TANS) Notes issued in anticipation of taxes, which are retired usually from taxes collected (typically by school by school districts). TAX LEVY ORDINANCE: An ordinance through which taxes are levied. TAX RATE LIMIT: The maximum legal rate at which a municipality may levy a tax. The limit may apply to taxes raised for a particular purpose or for general purposes. TERM BONDS: Any parity bonds designated by the Council as "term bonds" pursuant to an ordinance which authorizes the issuance of parity bonds and provides for mandatory payments into a sinking fund account established for the term bonds so designated and provides for mandatory redemption of such term bonds from such sinking fund account. THIRTEENTH MONTH: This is the month (January) following the end of the fiscal year in which prior expenditures shall be charged against the prior year's budget. This is a budgetary provision in state law (35A.33.150 RCW). It requires cities to charge the previous budget for items purchased before year- end, but not yet invoiced to the city up to the twentieth day in January. This provision is similar to accounts payable accruals in the private business community. City of Port Townsend 121 Glossary TRANSPORTATION IMPROVEMENT ACCOUNT (TIA): Provides funding for transportation projects through two urban programs. Urban projects must be attributable to congestion caused by economic growth. They must be consistent with state, regional and local selection processes. The TIB requires multi- agency planning and coordination and public /private cooperation to further the goal of achieving a balanced transportation system in Washington State. TRANSPORTATION IMPROVEMENT BOARD (TIB): The purpose of the TIB is to administer funding for local governments for transportation projects. This is accomplished through the Transportation Improvement Account Program and the Urban Arterial Trust Account Program. Revenues are from the state fuel tax, local matching funds, and private sector contributions. TRUST FUND: Funds used to account for assets held by a government in a trustee capacity for individuals, private organizations, and /or other funds. DATA: Urban Arterial Trust Account. UTILITY LOCAL IMPROVEMENT DISTRICTS: (ULID) Created only for improvement to sewer, water, and other utilities and differs from a LID in that all assessment revenues must be pledged for payment of debt service of bonds issued to finance the improvements. WAC: Washington Administrative Code. WARRANT: An order drawn by a municipal officer(s) directing the treasurer of the municipality to pay a specified amount to the bearer, either after the current or some future date. WCIA: Washington Cities Insurance Authority is a group of cities across the state that provides pooled and self - insurance services for liability, auto, property, and all other insurance coverage. YIELD: The rate earned on an investment based on the price paid for the investment, the interest earned during the period held, and the selling price or redemption value of the investment. City of Port Townsend 122