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Home My WebLink About01 January NewsletterNewsletterNewsletter January 2017 A Note from the Mayor & City Manager In last month’s newsletter, we noted some of the many accomplishments that the City achieved in 2016. As we welcome 2017, the City will be operating with a new budget. The City Council approved the 2017 City Manager’s proposed budget on December 5, 2016 and by doing so set the spending limits for expenses (also called appropriations) for the budget year. In the months leading up to adoption of this final budget, the City held public hearings on both the preliminary budget and the final budget. The Council reviewed the budget in workshop settings and had two readings of the budget prior to this final adoption. The approved budget builds on the positive year that was experienced in 2016. The rest of this newsletter provides highlights of the 2017 budget. The entire adopted budget is available under Latest News on the City website cityofpt.us. 2017 Budget Summary PROPERTY TAXES The City receives only a portion of the property tax that each citizen pays to Jefferson County. The City’s portion of the property taxes is approximately $3.377 per $1,000 of property assessed value. General Levy - The City’s General Property Tax provides funding for the General Fund, Community Services, Debt Service, Affordable Housing and the Firemen’s Retiree Pension. 50 % of the City’s General Property Tax Levy is allocated to East Jefferson Fire Rescue (EJFR). Two additional taxes have been authorized by voters. A Fire tax provides additional funds to EJFR to provide Fire and EMS Services. A Library tax provides funds to operate and maintain library services and facilities. EMS Levy - In addition to the allocation from the General Property Tax Levy, a separate EMS (Emergency Medical Services Levy) pays for Fire and EMS services for the citizens of Port Townsend. In total, the City will pay $2.4 million to EJFR for fire and EMS services in 2017. The Mountain View Tax Levy was approved by the voters in 2015 and provides funds to pay debt used to fund improvements on the Mountain View campus. Mountain View houses the City Police department, the City Pool, YMCA branch and several local non profit organizations. PROPERTY TAX ALLOCATIONAffordable Housing $10,000Firemen’s Pension $35,245Debt Service $102,000Community Services $412,000Mtn View Bond Levy $150,000EMS $717,000Fire - Voted $697,000Fire - Non-Voted $903,194General Fund $811,808Library $1,042,228Total $4,880,475 David Timmons AFFORDABLE HOUSING FIREMEN'S PENSION $35,245 DEBT SERVICE $102,000 COMMUNITY SERVICES , $412,000 MTN VIEW BOND LEVY$150,000 EMS $717,000 FIRE $697,000 FIRE $903,194 GENERAL FUND $811,808 LIBRARY $1,042,228 $10,000 (voter approved) (voter approved)(voter approved) (voter approved) (non-voted) 2017 Budget Summary The Operating Budget is divided into funds, which have different restrictions on how the money can be legally spent. General Fund revenue can be spent however the City Council wishes. General Fund revenue is largely made up of sales, utility and property taxes. Utility revenues from the Water, Sewer and Stormwater utilities must be used to operate and maintain the utility. Revenues generated in other funds like Lodging Tax and Real Estate Excise Tax (REET) can only be used for specific purposes. To fund City operations, the City Council sets the maximum amount that can be spent for each fund. The following charts highlight the 2017 budgeted operating revenues and expenses. All Funds ExpendituresExpenditures RevenuesRevenues TOTAL OPERATING REVENUE Charges For Service $7,045,057 MISC $285,589 *Intergov’t $1,878,545 License/Permits $368,683 Overhead Recovery $1,234,588 Utility Taxes $2,391,318 Property Taxes $4,880,475 Other Taxes $683,962 Sales Taxes $2,388,839 REET Taxes $460,000 Lodging Taxes $460,000 Business Taxes $835,778 *Transfer In $2,872,572 Total $25,785,406 OPERATING EXPENSES BY FUND Affordable Housing $10,000 CDBG $15,245 Community Svs $1,803,972 Engineering $887,921 Equipment Rental $920,533 FIRE/EMS $2,317,194 Firemen’s Pension $34,006 General $8,283,495 General Oblig. Debt $1,582,565 Golf Course $18,698 Library $1,041,019 Lodging Tax $433,734 Public Works Admin $505,880 REET $460,000 Streets Oper $813,216 Unemployment $3,000 Water/Sewer/Storm $6,178,196 Total $25,308,674 CDBGAFFORDABLE HOUSING0.0% 0.1% COMMUNITYSERVICES7.1% ENGINEERING 3.5% ER & R 3.6% FIRE / EMS 9.2%FIREMEN’SPENSION0.1% GENERAL 32.7% GENERAL OBLIG. DEBT 6.3%GOLF COURSE 0.1% LIBRARY 4.1%LODGING TAX 1.7% PUBLIC WORKS ADMIN 2.0% REET 1.8% STREETS OPER3.2% UNEMPLOYMENT0.0% WATER / SEWER / STORM 24.4% * Transfers In are interfund transfers to support debt service payments and community service activities *Intergovernmental revenues and expenses are amounts paid or received from the county or other government jurisdictions. ExpendituresExpenditures RevenuesRevenues GENERAL FUND GENERAL FUND REVENUE BY SOURCESales Taxes $2,388,839Utility Taxes $1,652,122Overhead Recovery $1,234,588Business Taxes $835,778Property Taxes $811,808Other Taxes $401,981License/Permits $368,183*Intergov’t $249,423Charges for Services $220,933MISC $127,400Total $8,291,055 The City’s General Fund pays for Public Safety, Development Services, and Administrative Services. Administrative Services include the City Manager, City Attorney, Financial Services, City Clerk and Human Resources. The General Fund also contributes dollars to support the maintenance of City Facilities, Parks and the City Pool. SALES TAXES 29%UTILITY TAXES 20% OVERHEAD RECOVERY 15% BUSINESS TAXES 10% PROPERTY TAXES 10% OTHER TAXES 5% LICENSE/PERMITS 4% INTERGOV'T 3% CHARGES FOR SERVICES 3% MISC 1% GENERAL FUND EXPENSES BY DEPT Police $3,141,384 Administration $2,471,335 *Transfers Out $990,960 DSD/Planning $973,432 Debt Service $454,303 Council $228,328 PEG Access TV $23,753 Total $8,283,495 POLICE 38% ADMINISTRATION 30% TRANSFERS 12% DSD/PLANNING12% DEBT SERVICE 5% COUNCIL 3%PEG ACCESS TV 0% * Transfers Out are interfund transfers to support debt service payments and community service activities *Intergovernmental revenues and expenses are amounts paid or received from the county or other government jurisdictions. CAPITAL IMPROVEMENTS Funding for capital projects comes from a variety of sources including Community Development Block Grants (CDBG), federal and state loans and grants and debt financing. In order to pay for all of these projects, the City Council will review plans to refinance the 2008 General Obligation debt and consider a new revenue bond to pay for some of the new utility projects. Capital improvement projects planned for 2017 include completion of the repairs and upgrades for facilities on the Mountain View Campus. The City received a Community Development grant in late 2016 that will provide tenant improvements on the campus to address the needs of the non-profit tenants. Improvements at the Library include window and roof replacement and retainaging wall, stair, and walkway repairs. The City broke ground on the extension of Howard between Sims Way and Discovery Road in 2016. This project has Street, Water, Sewer and Stormwater components included. The 2017 budget also includes the Water Street Overlay project which will provide pavement repair and upgrades to Water Street from Taylor to the Ferry terminal. Sidewalk replacement and streetscape improvements along with replacement of the 80 year old water line are also included as a part of the Water Street Overlay project. The new water filtration plant and 5 million gallon reservoir projects will be completed and operational in the first quarter of 2017. This new plant will treat all of the City’s drinking water using membrane filtration technology and is required to meet state and federal drinking water requirements. The reservoir replaces the aging storage reservoir and is designed to meet current seismic standards. The 2017 Capital Budget plan includes the following projects: Howard Street Extension Water Treatment Facilityand Reservoir General Government Projects: Mountain View Repairs & Upgrades 1,614,000 Carnegie Library & Annex Improvements 700,000 2,314,000$ Street Projects: Howard Street Extension 2,760,000 Water Street Overlay Design 160,000 SR 20 Pedestrian Walkway 175,000 Visitor Center/Sims Way Frontage Improvements 800,000 7th Street Prelimnary Design Work 30,000 3,925,000$ Water Projects: Completion of Water Treatment Facility 350,000 Completion of 5 mg Reservoir 650,000 Howard Street Water Infrastructure 500,000 Water Street - Water System Improvements 140,000 Big Quil Diversion Dam 800,000 General Water Projects 120,000 2,560,000$ Sewer: Howard Street Sewer Infrastructure 200,000 Outfall Replacement Design 300,000 Water Street Overlay Sewer Improvements 40,000 General Sewer Projects 120,000 660,000$ Stormwater: Logan Street Improvement 40,000 Howard Street Strormwater 500,000 Regional Stormwater 750,000 Water Street Overlay Storm Infrastructure 40,000 1,330,000$ 10,789,000$ Capital Improvement Plan for 2017 Total Budgeted Capital Expenditures