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HomeMy WebLinkAbout2019 Final Budget City Manager’s 2019 Budget 2019 CITY MANAGER BUDGET MESSAGE This budget message provides details regarding the City Manager’s 2019 Proposed Budget, a summary of the 2016 – 2018 strategic plan final report, an overview of the 2018 Supplemental Budget request, and links to the 2017 Audited Financial Statements. CITY OF PORT TOWNSEND VISION A vibrant, diverse community primed for economic growth. CITY OF PORT TOWNSEND MISSION STATEMENT Facilitate the community’s aspirations for a thriving small-town quality of life as envisioned in the five key issues of the Comprehensive Plan. FINANCIAL PERFORMANCE HIGHLIGHTS 2017 AUDITED FINANCIAL STATEMENTS The City successfully completed three audits in 2018. Audits of the 2017 financial statements, an accountability audit, and a Single Audit related to federal grant funded projects. These audits were completed in mid-July by the State Auditor. No findings or management letter comments were received. The 2017 financial results were positive, with a $355,575 increase in the general fund ending fund balance. Each of the funds met or exceeded the City Council’s financial policy targets. The 2017 audit reports can be located on the City’s website: http://weblink.cityofpt.us/weblink/0/doc/172299/Page1.aspx And on the Washington State Auditor’s website: http://portal.sao.wa.gov/ReportSearch/Home/ViewReportFile?arn=1021831&isFinding=f alse&sp=false http://portal.sao.wa.gov/ReportSearch/Home/ViewReportFile?arn=1021828&isFinding=false&sp=false City of Port Townsend 2019 Budget Page 1 of 152 THREE-YEAR STRATEGIC PLAN 2016 -2018 FINAL REPORT: The plan consists of Six Objectives that City Council felt are reflective of the City’s Comprehensive Plan and Council identified 31 action/measures to be implemented. The City is pleased to report that of the 31 actions/measures, all but 3 have been accomplished by some action taken by Council or staff. While some that were accomplished may not be specific to an Action/Measure called out in the Plan, there is a nexus to the Council actions and objectives. Strategic Plan Agenda Bills: The City Clerk’s Office tracks every agenda bill that presents an action items for the City Council to consider. In our case each agenda is color coded to match the Plan’s Objectives 1 – 6. Below is a tabulation tracking Agenda Bills that directly relate to the Council’s Strategic Plan Objectives compared to all other actions taken by Council. Actions and Measures Taken by City Council Which Implemented Strategic Plan Objectives Agenda Action Items Measured by Agenda Bills 2016 6 Months following adoption 2017 Calendar Year 2018 Year to Date Total Related to Plan 33 88 71 192 Unrelated to Plan 50 57 30 137 Total Actions Taken 83 145 101 329 The Table above shows the annual count of agenda action items that Council has adopted during the term of the current plan. Based upon my review of this record, The Council and staff feel they have performed well beyond expectations and the community has benefited highly from our adherence to the plan’s objectives. These numbers also speak well of the strategic process and the benefits of having a plan, such as this, in place, to help focus our actions and outcomes. This also helps us better communicate to the public where we are focusing our efforts on their behalf. City of Port Townsend 2019 Budget Page 2 of 152 2018 BUDGET REVIEW For Fiscal Year January 1, 2018 to December 31,2018 Throughout 2018, the City has continued to benefit from the improving economic climate as revenues have exceeded expectations. The City has experienced an increase in assessed property values, the number of utility accounts and business licenses issued. Additionally, retail sales revenue reflected positive growth for the year. Preliminary property values received from the Jefferson County Assessor’s office show that the City’s assessed values grew 8.1% over 2017. In addition, utility accounts grew 1.2% over 2017; the City issued over 400 “new” business licenses, and business & occupation tax revenue increased 8.1% year to date over this time in 2017. Year to date 2018 figures indicate that construction activity grew to 24.5% of the total retail sales activity, an increase of 3.2% from 2017. General fund revenues are expected to exceed original estimates by 5.2% or $447,935. The breakdown of this increase is $197,800 in retail sales, excise & special purpose tax; $76,700 in public utility tax; $9,500 in investment interest income; $43,300 in permitting/zoning fees; $90,000 in business & occupation taxes; and $24,000 in business licensing, and miscellaneous other income. Real Estate Excise Tax is projected to reach $541,600 which is $31,500 or 6.2% more than anticipated reflecting the active real estate market. Some larger sales include commercial buildings on Sims Way, Washington Street and Uptown, and several high-end residential sales in town. Lodging Tax Revenue is also expected to exceed the 2018 adopted budget by $71,000 indicating strong tourism activity this year. The 2018 adopted budget included hiring one additional staff position in the police department. A full time Community Services Officer was hired in April to coordinate community special events, manage parking enforcement and traffic safety and assist with calls for service not requiring the presence of a sworn officer. This position works closely with Police, Parks and Recreation, Fire/EMS, Public Works and the community to ensure the safety of our residents. Our Public Works Administration Department coordinated with the Finance Department to re-design an administrative position. This is not an additional position, but it was reassigned to the Finance Department after an administrative position came open. An accountant was hired in August to work closely with Public Works, Engineering and the Finance Department to perform a variety of tasks including capital reporting and budgeting, asset accounting, data analysis, and technical support on special projects. With the pending retirement of the City’s first and only City Manager, recruitment efforts for a new City Manager began in 2018. A strategic planning retreat was held in September to review and update the City’s strategic focus areas and to begin the discussions on qualifications and qualities that a Manger will need to assist the Council in carrying out this strategy. A community task force was formed and began meeting in October to assist in the development of the position description for this key position. City of Port Townsend 2019 Budget Page 3 of 152 Operating and capital expenditures continue to be closely monitored. A supplemental budget was adopted in the first quarter of 2018 related to capital projects. Some project timelines were extended into 2018 regarding the Rainier Street, Library and Mountain View Projects. The second supplemental budget proposal includes additional adjustments related to capital which includes interim financing requests for the Water Street Overlay project. Additional proposed supplemental budget general government appropriation items include: Rainier Street sub area plan and staff support – In February 2017, the City Council approved the addition of the Howard Street/Sims Way Corridor Subarea plan into the 2017 Comprehensive Plan annual update process. In May 2017, the City Council authorized staff to retain AHBL to assist in engaging and capturing the community’s vision for this area and to transform that vision into the subarea plan. The cost for AHBL’s work and the temporary staff support hired for this project has extended to 2018. The AHBL contract in 2018 is a re-appropriation of $70,000 and an additional appropriation of $30,000 plus additional temporary staff time of approximately $18,000. Homeward Bound (Cherry Street) Project - In May 2018, the City sold Limited Tax General Obligation Bonds (Taxable) at a fixed rate of 4.35% per annum generating bond proceeds of $834,000, pursuant to Ordinance No. 3201 passed on May 7, 2018. These funds will be used to complete the Cherry Street affordable housing project. The City in turn will loan money to Homeward Bound and loan payments, which will repay its loan to the City with cashflow from rental income. The council agreed to use a portion of the council reserve to make the payments beginning in December 2018, until such time as the housing project is complete and generates enough rental income to cover the debt service. This transaction generates an accounting entry in 2018 to transfer $250,000 plus interest back to the Transmission Line Fund for the interfund loan authorized in 2017, per Resolution 17-053. Water Street Overlay Project - This project consisted of restructuring over 1100 feet of pavement, replacing water mains and storm drain pipes, in addition to creating a pedestrian plaza and installing new sidewalks, undergrounding power and other enhancements. Cost overruns over contingency expectations due to scope changes and unforeseen problems in the historic downtown area created additional appropriation requests for street and storm capital components totaling approximately $610,000. While the project costs are over budget, additional appropriations for the fund are not necessary as other projected 2018 projects such as the visitor center frontage and Complete Streets projects were delayed. These later project costs will be requested in 2019. An interim line of credit will be used for funding the project deficit in 2018. A long-term financing recommendation to repay the line of credit will be provided to the Council in early 2019. Maintenance and replacement of fleet and technology equipment – Finance conducted a detailed analysis of all activity in the Equipment Rental & Replacement (ER&R) Fund between 2007 through 2017. Staff presented this analysis and its recommendations to council which reflect additional appropriations in the supplemental City of Port Townsend 2019 Budget Page 4 of 152 budget request. 2018 appropriations for general government funds to the ER&R Fund for operating, maintenance and replacement increased by $234,593. In addition, the general fund will contribute $267,000 to fully fund the shortfall created from 2007 – 2017 for Information Technology. Staff recommends that the ER&R Fund be replaced in 2019 (pending council approval) with new funds to separate general government funds from utility funds and to provide more transparency in the administration of these funds. Miscellaneous other proposed general government appropriation changes: Additional unforeseen expenditures at the time the 2018 budget was adopted include the following: • $52,000 – Increased share of District Court Costs • $40,000 – Replacement of video server for public access TV • $22,000 – Approved salary increase (6-month contract extension for City Manager) • $90,000 – General Fund transfer increase to the Community Services Fund to cover operating and maintenance costs • $92,000 – Approved additional street maintenance improvements • $22,000 – Reallocation of Public Works Admin costs (updated cost allocation model) • $25,000 – Reassign 25% of mechanic to street operations • $15,000 – Consulting services for the Library (level of service analysis) • $61,000 – Professional Services for tourism promotion • $6,500 – Hotel Vacancy Study (recommended by Lodging Tax Advisory Committee) • $25,000 – Increase to appropriations for a $40,000 Community Development Block Grant Loan to local businesses • $18,000 – Roof replacement for Kai Tai Restroom structure (fire damage) • $14,000 – Gazebo repair at Chetzmoka Park • $110,000 – Pending elevator replacement at City Hall Proposed supplemental budget enterprise fund appropriation items include: • System Development – Increase in transfers to water / sewer capital fund to cover city match on the Water Street Overly Project. • Storm Operations – An increase in transfers to the Storm Capital Fund are necessary to cover city match portion for the Water Street Overlay Project. Proposed supplemental budget internal service fund appropriation items include: • Engineering Services – Internal engineering plan review activity not funded by capital projects. • Additional unemployment compensation not foreseen at the time the 2018 budget was adopted. The City proposed 2018 Supplemental Budget Fund summary is listed below: City of Port Townsend 2019 Budget Page 5 of 152 20 1 7 20 1 8 20 1 8 20 1 8 20 1 8 20 1 8 20 1 8 20 1 8 2018 En d i n g F u n d Ad o p t e d A m e n d e d A d o p t e d A m e n d e d A d o p t e d A m e n d e d Pr o p o s e d Su p p l e m e n t a l Projected Ending Fund Ba l a n c e R e v e n u e s R e v e n u e s E x p e n s e s E x p e n s e s Re v v s . E x p R e v v s . E x p Ap p r o p r i a t i o n Balance GE N E R A L F U N D 1, 7 7 6 , 9 6 6 8, 6 3 8 , 3 6 6 9, 0 8 6 , 3 0 1 8, 6 0 9 , 8 5 7 9, 3 9 6 , 0 0 0 28 , 5 0 9 (3 0 9 , 6 9 9 ) 78 6 , 1 4 3 1,467,266 Dr u g E n f o r c . / C o n t i n g e n c y 17 1 , 3 4 3 50 0 10 , 4 8 8 - - 50 0 10 , 4 8 8 - 181,831 St r e e t 38 0 , 7 7 2 83 7 , 9 4 2 86 0 , 9 9 5 81 9 , 0 8 2 1, 0 1 5 , 7 1 0 18 , 8 6 0 (1 5 4 , 7 1 5 ) 19 6 , 6 2 8 226,057 Lib r a r y 24 0 , 9 1 5 1,0 7 7 , 6 0 1 1,0 8 4 , 3 3 7 1, 0 9 3 , 3 7 9 1,1 2 7 , 5 8 5 (1 5 , 7 7 8 ) (4 3 , 2 4 8 ) 34 , 2 0 6 197,667 Re a l E s t a t e E x c i s e T a x 30 1 , 0 5 2 51 0 , 1 0 0 54 1 , 6 3 4 54 5 , 0 0 0 54 0 , 0 0 0 (3 4 , 9 0 0 ) 1,6 3 4 - 302,686 Lo d g i n g T a x 25 2 , 5 0 0 48 0 , 0 0 0 55 1 , 0 8 0 47 9 , 8 3 8 54 7 , 3 3 8 16 2 3,7 4 2 67 , 5 0 0 256,242 Fi r e / E M S 2,5 2 5 2,3 8 5 , 8 7 6 2,3 8 6 , 4 4 1 2, 3 8 5 , 2 7 6 2, 3 8 5 , 2 7 6 60 0 1,1 6 5 - 3,690 Aff o r d a b l e H o u s i n g 10 , 9 2 2 10 , 0 0 0 10 , 1 0 8 10 , 0 0 0 10 , 0 0 0 - 10 8 - 11,030 Co m m u n i t y D e v e l o p m e n t B l o c k G r a n t 16 8 , 4 2 1 13 , 6 2 3 44 , 0 0 8 15 , 0 0 0 40 , 0 0 0 (1 , 3 7 7 ) 4,0 0 8 25 , 0 0 0 172,429 Co m m u n i t y S e r v i c e s 88 , 5 9 4 2,0 1 3 , 4 4 8 2,1 6 7 , 9 8 2 2, 0 1 2 , 5 6 0 2, 1 5 0 , 7 7 6 88 8 17 , 2 0 6 13 8 , 2 1 6 105,800 TO T A L S P E C I A L R E V F U N D S 1, 6 1 7 , 0 4 4 7, 3 2 9 , 0 9 0 7, 6 5 7 , 0 7 3 7, 3 6 0 , 1 3 5 7, 8 1 6 , 6 8 4 (3 1 , 0 4 5 ) (1 5 9 , 6 1 1 ) 46 1 , 5 4 9 1,457,433 DE B T S E R V I C E F U N D 86 , 7 4 6 1, 6 7 5 , 1 5 5 1, 6 6 7 , 6 7 8 1, 6 4 5 , 6 5 6 1, 6 6 6 , 8 9 2 29 , 4 9 9 78 6 21 , 2 3 6 87,532 Ge n e r a l C a p i t a l 3, 4 1 9 , 3 0 8 2,0 7 3 , 5 2 8 2,7 0 3 , 8 2 0 5, 4 5 1 , 8 4 1 4, 6 6 8 , 8 4 1 (3 , 3 7 8 , 3 1 3 ) (1 , 9 6 5 , 0 2 1 ) - 1,454,287 St r e e t C a p i t a l (3 2 8 , 8 2 5 ) 3,3 9 9 , 2 8 9 3,4 5 2 , 1 0 0 3, 4 4 6 , 9 8 9 2, 9 1 8 , 1 6 0 (4 7 , 7 0 0 ) 53 3 , 9 4 0 - 205,115 CA P I T A L P R O J E C T S F U N D S 3, 0 9 0 , 4 8 3 5, 4 7 2 , 8 1 7 6, 1 5 5 , 9 2 0 8, 8 9 8 , 8 3 0 7, 5 8 7 , 0 0 1 (3 , 4 2 6 , 0 1 3 ) (1 , 4 3 1 , 0 8 1 ) - 1,659,402 Sy s t e m D e v e l o p m e n t 1, 7 1 5 , 7 3 8 31 5 , 2 9 0 31 6 , 9 2 7 1, 0 8 0 , 0 0 0 1, 1 1 0 , 0 0 0 (7 6 4 , 7 1 0 ) (7 9 3 , 0 7 3 ) 30 , 0 0 0 922,665 Wa t e r / S e w e r O p e r a t i o n s 3, 3 2 7 , 6 7 1 6,2 1 6 , 9 5 7 6,5 7 9 , 7 5 8 7, 8 6 1 , 8 7 4 7, 7 7 9 , 3 9 4 (1 , 6 4 4 , 9 1 7 ) (1 , 1 9 9 , 6 3 6 ) - 2,128,035 Wa t e r / S e w e r C a p i t a l 1, 4 2 5 , 3 5 6 7,3 7 0 , 2 7 2 7,4 0 5 , 2 0 5 6, 5 4 7 , 9 1 5 6, 3 6 2 , 1 2 1 82 2 , 3 5 7 1,0 4 3 , 0 8 4 - 2,468,441 St o r m O p e r a t i o n s 17 5 , 1 3 6 73 8 , 0 1 8 74 3 , 8 1 2 76 5 , 1 3 7 77 8 , 5 7 4 (2 7 , 1 1 9 ) (3 4 , 7 6 2 ) 13 , 4 3 7 140,374 St o r m C a p i t a l (2 8 , 0 1 6 ) 1,0 7 0 , 6 0 0 62 8 , 0 0 0 1, 2 2 0 , 0 0 0 60 0 , 0 0 0 (1 4 9 , 4 0 0 ) 28 , 0 0 0 - (16) EN T E R P R I S E F U N D S 6, 6 1 5 , 8 8 6 15 , 7 1 1 , 1 3 7 15 , 6 7 3 , 7 0 2 17 , 4 7 4 , 9 2 7 16 , 6 3 0 , 0 8 8 (1 , 7 6 3 , 7 9 0 ) (9 5 6 , 3 8 7 ) 43 , 4 3 7 5,659,499 Pu b l i c W o r k s A d m i n 26 , 2 2 6 58 4 , 5 7 3 56 0 , 7 7 0 58 4 , 2 7 2 56 1 , 1 4 5 30 1 (3 7 5 ) - 25,851 Eq u i p m e n t R e n t a l & R e p l a c e m e n t 71 4 , 1 1 7 1,3 7 0 , 3 9 1 2,1 6 3 , 7 9 0 1, 4 6 5 , 6 5 5 1, 4 4 4 , 0 6 4 (9 5 , 2 6 4 ) 71 9 , 7 2 6 - 1,433,843 En g i n e e r i n g S e r v i c e s 21 0 , 7 8 1 1,0 0 9 , 5 0 0 1,0 4 0 , 7 3 4 1, 0 4 2 , 5 6 4 1, 0 6 5 , 8 6 5 (3 3 , 0 6 4 ) (2 5 , 1 3 1 ) 23 , 3 0 1 185,650 Un e m p l o y m e n t S e l f - I n s u r a n c e 24 , 8 3 2 19 , 6 2 0 46 , 5 9 8 19 , 5 0 0 46 , 4 1 6 12 0 18 2 26 , 9 1 6 25,014 IN T E R N A L S E R V I C E F U N D S 97 5 , 9 5 6 2, 9 8 4 , 0 8 4 3, 8 1 1 , 8 9 2 3, 1 1 1 , 9 9 1 3, 1 1 7 , 4 9 0 (1 2 7 , 9 0 7 ) 69 4 , 4 0 2 50 , 2 1 7 1,670,358 Fi r e m e n ' s P e n s i o n 23 1 , 9 2 5 34 , 7 3 5 36 , 1 6 3 27 , 1 4 0 27 , 1 4 0 7, 5 9 5 9,0 2 3 - 240,948 Ag e n c y / R e f u n d a b l e D e p o s i t s 77 , 5 3 4 - 54 8 - - - 54 8 - 78,082 Me m o r i a l F u n d 2,5 4 9 - - - - - - - 2,549 Go l f C o u r s e F u n d 42 , 2 9 6 12 , 0 0 0 10 , 2 6 7 21 , 4 1 9 40 , 4 1 9 (9 , 4 1 9 ) (3 0 , 1 5 2 ) 19 , 0 0 0 12,144 FI D U C I A R Y F U N D S 35 4 , 3 0 4 46 , 7 3 5 46 , 9 7 8 48 , 5 5 9 67 , 5 5 9 (1 , 8 2 4 ) (2 0 , 5 8 1 ) 19 , 0 0 0 333,723 GR A N D T O T A L 14 , 5 1 7 , 3 8 5 41 , 8 5 7 , 3 8 4 44 , 0 9 9 , 5 4 4 47 , 1 4 9 , 9 5 5 46 , 2 8 1 , 7 1 6 (5 , 2 9 2 , 5 7 1 ) (2 , 1 8 2 , 1 7 1 ) 1, 3 8 1 , 5 8 3 12,335,213 Ci t y o f P o r t T o w n s e n d P r o j e c t e d 2 0 1 8 F u n d S u m m a r y - S u p p l e m e n t a l B u d g e t Ci t y of Po r t To w n s e n d 20 1 9 Bu d g e t Page 6 of 152 2019 BUDGET MESSAGE 2019 shows signs of being a positive year as the local economy continues to grow, as indicated by local tax revenue projections. Port Townsend, the center of economic activity in Jefferson County, is dependent on diverse and vital industries such as the maritime trades, tourism, agriculture, artisan production, retail business, light manufacturing and the public-sector. The Port of Port Townsend, a publicly owned special district that owns, operates and maintains 550 acres of property including marinas, boat & shipyards, commercial uplands, parklands, shoreline public access and an international airport provides a substantial base of economic activity. Fort Worden, another public entity within city limits, contributes to the local economy by attracting visitors, offering living wage jobs and generating tax revenue. It is a favored destination for residents and tourists with miles of trails, camping, conference facilities, learning and educational opportunities and programs and events in the arts, crafts, humanities, environmental and marine sciences. The Fort is continuing to stimulate redevelopment and Makers Square, which is an artistic hub on the Lifelong Learning Center Campus that will showcase classrooms, art galleries, KPTZ radio, culinary & woodworking schools, studios and other exhibition spaces is one project that is supporting economic growth to our area. The Port Townsend Paper Company is the largest private employer in the county stimulating the local economy with living wage jobs and many other contributions and involvement in the community. Other employers including Jefferson County Hospital, Port Townsend School District and the City of Port Townsend itself, employing over 110 people, contribute to stable employment and provide a solid foundation for the economy looking forward. Statewide economic trends such as the unemployment rate, interest rates, consumer price index, median home prices, median wage, etc. point to a positive growth cycle in 2019. Considering these indicators, along with factoring in Port Townsend’s own unique economy, the 2019 budget is prepared with expense and revenue inflation increases of around 2 to 3%. Some revenue forecasts, such as retail sales & business & occupation taxes are forecasted conservatively with fiscal sustainability in mind, as explained in more detail later in this document. As directed by Council and consistent with the City’s strategic plan, the City Manager is continuing to work on the development of long-term funding strategies to address deferred needs in streets maintenance and repairs, parks and recreation services, library services, and other infrastructure improvements. Funding for these services and facilities require many strategies. One such long-term strategy being discussed is the additional property tax revenue capacity through annexation of the City’s fire service to the East Jefferson Fire Rescue service district. Community meetings and council discussions were held with the City, East Jefferson Fire Rescue and the public in 2018. The City Council adopted measures in late 2018 requesting annexation into the East Jefferson Fire Rescue service district. A ballot measure will be voted on in the February 2019 election. If the measure is approved, governance would take effect in March 2019 with the first levy impact effective in 2020. The city and fire district agreed that the city would limit its authority to raise its pre-existing general levy fire allocated City of Port Townsend 2019 Budget Page 7 of 152 property taxes for a four-year term starting in 2020. This “banked” taxing authority may be phased in over a three-year period starting in 2021 with limitations on how funds will be earmarked. Eligible uses considered are street maintenance, parks & recreation, affordable housing initiatives, and utility tax relief. The city looks forward to pursuing its strategic objectives and accomplishing several new operational tasks in 2019 including the following: • Recruit a new City Manager with an anticipated start date in mid-year. • Negotiate a new solid waste contract • Begin contract negotiations with Port Townsend Paper Company for transfer of water supply obligations • Continue to establish the city’s role as a facilitator for affordable housing • Finalize and begin to implement the storm water master plan • Complete operational analysis of the city golf course and prepare recommendations • Complete the Rainier Street Sub Area Planning process • Prepare recommendations for the City Library based on the service sustainability analysis results • Undergo a city-wide software needs assessment • Implement new employee respiratory safety program • Identify long-term financing to continue capital projects investment • Implement new recommended policies and procedures for the equipment replacement program • Onboard a new public works operation manager • Recruit new hires for long-term retiring employees • Negotiate tenant leases at Mountain View following space upgrades for the non- profit tenants 2019 promises to be a busy year with a lot of changes. We are looking forward to the opportunities these changes will bring. The remainder of this document breaks out the proposed budget into operational and capital categories with key highlights in each section. The budget is adopted at the fund level. The chart below (which represents Exhibit A to the budget ordinance) provides an overview of the revenues, expenditures and projected ending fund balances: City of Port Townsend 2019 Budget Page 8 of 152 2018 2019 2019 2019 2019 Estimated Proposed Proposed Proposed Proposed Balance Revenues Expenses Rev vs. Exp Balance GENERAL FUND 1,467,266 9,101,543 9,097,115 4,428 1,471,694 Drug Enforc. / Contingency 181,831 1,200 - 1,200 183,031 Street 226,057 870,803 930,573 (59,770) 166,287 Library 197,667 1,097,144 1,161,673 (64,529) 133,138 Real Estate Excise Tax 302,686 512,200 510,000 2,200 304,886 Lodging Tax 256,242 550,750 572,908 (22,158) 234,084 Fire / EMS 3,690 2,412,574 2,411,574 1,000 4,690 Affordable Housing 11,030 10,100 10,000 100 11,130 Community Development Block Grant 172,429 14,424 15,000 (576) 171,853 Community Services 105,800 2,016,792 2,010,775 6,017 111,817 TOTAL SPECIAL REV FUNDS 1,457,433 7,485,987 7,622,503 (136,516) 1,320,917 DEBT SERVICE FUND 87,532 1,698,035 1,686,855 11,180 98,712 General Capital 1,454,287 296,831 1,706,931 (1,410,100) 44,187 Street Capital 205,115 1,841,829 2,040,991 (199,162) 5,953 CAPITAL PROJECTS FUNDS 1,659,402 2,138,660 3,747,922 (1,609,262) 50,140 System Development 922,665 338,452 600,000 (261,548) 661,117 Water / Sewer Operations 2,128,035 6,957,366 7,059,994 (102,628) 2,025,407 Water / Sewer Capital 2,468,441 2,761,454 2,551,215 210,239 2,678,680 Storm Operations 140,374 747,859 781,074 (33,215) 107,159 Storm Capital (16) 990,000 968,000 22,000 21,984 ENTERPRISE FUNDS 5,659,499 11,795,131 11,960,283 (165,152) 5,494,347 Public Works Admin 25,851 611,802 594,272 17,530 43,381 Equipment Rental & Replacement 1,433,843 1,148,957 942,310 206,647 1,640,490 Engineering Services 185,650 894,000 982,310 (88,310) 97,340 Unemployment Self-Insurance 25,014 20,180 20,000 180 25,194 INTERNAL SERVICE FUNDS 1,670,358 2,674,939 2,538,892 136,047 1,806,405 Firemen's Pension 240,948 35,735 17,551 18,184 259,132 Agency / Refundable Deposits 78,082 - - - 78,082 Memorial Fund 2,549 - - - 2,549 Golf Course Fund 12,144 10,250 18,229 (7,979) 4,165 FIDUCIARY FUNDS 333,723 45,985 35,780 10,205 343,928 GRAND TOTAL 12,335,213 34,940,280 36,689,350 (1,749,070) 10,586,144 City of Port Townsend City Manager Proposed 2019 Fund Summary City of Port Townsend 2019 Budget Page 9 of 152 2019 BUDGET ASSUMPTIONS KEY REVENUE ASSUMPTIONS The City’s Property Tax Levy for 2019 is forecast to increase by the statutory 1.0% plus an adjustment for the value of new construction and refunds forecast at approximately 1.4% for a TOTAL property tax levy increase of 2.4% for the General Levy. The City’s share of this revenue is 73.5%, or $2.5 million for Public Safety & General Services, Library operations, Community Services (Parks, Trails, Facilities), Affordable Housing initiatives, Debt Service and Fireman’s Pension. The EMS Levy of $0.47 generates an additional 2.4% of revenue. An excess property tax assessment of approximately $150,000 related to the Mountain View Commons voted tax assessment will be levied to fund 50% of the annual debt service for this voted bond. Below is a chart showing the distribution of property taxes: City of Port Townsend 2019 Budget Page 10 of 152 Retail Sales Taxes in 2018 are projected to come in at 7.1% over 2017 and 6.2% more than the adopted budget. Construction activity can skew “normal” revenue from retail sales, business and occupation taxes, permitting fees and special purpose sales taxes trends, so this revenue source is closely monitored to differentiate between improved economic trends as compared to “one-time” revenues related to construction activity. An internal analysis of sales tax data indicates that the increase in 2018 is realized across most industry categories with manufacturing and construction showing the highest increases at 58.4% and 23.0% over the prior year, respectively. According to the State of Washington, September’s state revenue and economic data shows that Washington’s unemployment rates are at an all-time low at 4.4% and expected to remain at this level for the next five years; consumer confidence remains high as preliminary retail sales collections grew 5.7% and business and occupation tax collections grew 12.4% year over year. While still strong, the housing market is showing signs of slowing down as the number of building permits are slowing, and the consumer price index is at 2.3% higher than September of last year. The Market Place Fairness Act went into effect on January 1, 2018 (EHB 2163). This act imposes retail sales tax on remote sellers in Washington State. While the State indicates that local governments are seeing some positive results, a task force is meeting regularly to provide guidance to local governments on the best ways to monitor it. How does this translate to Port Townsend? In 2019, the city anticipates continued private, commercial and public sector related construction along with expecting ongoing retail activity in the City and at Fort Worden. Removing the construction component from our total retail sales revenue estimate, we are forecasting that the level of retail sales tax will be similar to 2018, which is higher than 2017 by 7.1% and higher than 2016 levels by 7.7%. This approach is a conservative one that minimizes projections of “one-time” revenues so the city does not depend on this revenue for annual ongoing appropriations. Below is a chart demonstrating the upward trend of retail sales taxes showing a 41.9% growth since 2014 and the forecast for 2019: City of Port Townsend 2019 Budget Page 11 of 152 Reviewing the trend by industry specific to Port Townsend shows how other industries such as retail trade and accommodation/food industries demonstrate steady growth, while construction is more erratic, further validating conservative forecasting for this component of revenue. See below for reference: Lodging Taxes are projected at $550,000, which is 14.6% higher than the 2018 adopted budget of $480,0000. The 2019 forecast is equal to the 2018 projection, and factors in favorable tourism activity at hotels, motels and Fort Worden. Expenditures are restricted to marketing and tourism related infrastructure. The chart below depicts continued positive trend in tourism related taxes since 2009 here in Port Townsend: City of Port Townsend 2019 Budget Page 12 of 152 Business & Occupation Taxes are projected at $900,000, which is 11.1% higher than 2018 adopted budget. In 2018 the City implemented a new license and tax structure. It was unknown how this change would impact this revenue source, so we conservatively budgeted in 2018. In 2018, we are averaging 590 quarterly returns to businesses claiming gross income more than $100,000 per year. When we prepared our analysis for the tax structure change, using 2014-2016 data, this group of employers were averaging around 513. We reviewed our first quarter of activity and noted that the increase, again, was largely related to construction. We will continue to monitor business & occupation tax data going forward to see which businesses represent ongoing activity versus. “one-time” construction activity. Real Estate Excise Taxes (REET) year to date collections in 2018 show strong results in real estate transactions, consistent with 2017 results, and are projected to be $541,000 or 6.1% more than adopted budget. 2019 REET revenues are budgeted at $510,000. It is difficult to forecast when large commercial properties will sell, which can disproportionately distort this revenue source. Thus far in 2018 we have received receipts from several large commercial and high-end residential real estate transactions. These funds restricted to capital improvements or debt service, which reduces the City’s reliance on general fund dollars to make up city matching project funds. Below is a chart showing the positive trend in Business & Occupation and REET Taxes. REET revenue is much more volatile and dependent on real estate sales versus the steady growth trend in Business & Occupation Taxes: City of Port Townsend LTAC Revenue Summarized between Gov't & Non Gov't Entities Entity Type 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Est. Actual Budget 2019 Non Gov't $246,019 $247,489 $246,364 $251,052 $275,710 $279,527 $318,065 $360,091 $368,825 $405,409 $393,554Gov't*$94,159 $76,699 $105,817 $100,891 $92,985 $84,648 $125,794 $114,846 $139,678 $144,591 $156,446 Total $340,177 $324,188 $352,181 $351,943 $368,695 $364,175 $443,859 $474,938 $508,503 $550,000 $550,000 $0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Est.Actual Budget 2019 LTAC Ten Year Revenue Trend Total Non Gov't Gov't* City of Port Townsend 2019 Budget Page 13 of 152 Utility Tax revenues in the proposed 2019 budget are based on a 22% gross receipt public utility tax for all city water, sewer, storm water and garbage services. Two percent of this tax was slated to revert to 20% at the end of 2018, however, City Council renewed the tax for an additional five years (See Ordinance 3203). The additional 2% currently supports two Community Services maintenance workers to serve Parks and Mountain View facility. Total public utility tax forecasted for 2019 is $1,628,230 and is split amount General Services (45%), Public Safety (7%), Streets (39%) and Community Services (9%). Private utility tax rates are 6% of the private utility revenue. Telephone and electric private utility taxes are estimated to be $941,050 and are forecasted to increase based on inflationary adjustments only. State Shared Revenues are based on distributions that are shared via state revenue assessments. The City receives distributions for liquor profits and tax, criminal justice tax and marijuana tax distributions, fuel and multi-modal gas taxes which primarily support public safety and streets. Some of these distributions are population based with the City’s population for 2018 listed by the Office of Financial Management as 9,545 (an increase from 2017’s population of 9,500). 2019 projected state shared revenue is $382,908, which is slightly less than 2018 projections of $384,166. Although our population estimated increased, the distribution for Liquor Excise tax which was reduced from $8.29 per capita to $8.16 per capita, and in marijuana distributions. Other state share distributions increased. City of Port Townsend 2019 Budget Page 14 of 152 Overhead Cost Recovery is projected to decrease by approximately $14,753, or 1.0% in 2019. This decrease is the result of several factors that are calculated in our overhead cost recovery model. The allocation model looks back two years to recover overhead costs occurring in 2017 to be recovered in 2019. The decrease is primarily the result of allocating more overhead to administrative cost centers in the General Fund that are not recoverable versus special revenue and enterprise cost centers that do reimburse the General Fund. Utility Revenues (Water, Sewer and Stormwater) are budgeted at the adopted rate increase per Ordinance 3199. In 2017, the City underwent a water and sewer rate study, contracting with FCS Consulting Group, to analyze whether our utility rates fully supported capital infrastructure and operations of water and sewer. The results of the rate study recommended increases in both surcharge and usage fees. These revised rates were adopted in May 2018 and are scheduled to take affect January 1, 2019. Water and sewer operating and maintenance rates are scheduled to increase 3.0%. The surcharge for water will remain at $20.00 per month, and the sewer surcharge will increase from $3.00 per month to $8.00 per month. The revenue forecast calculations for 2019 also include an increase of 1% for new accounts added to the utility. These assumptions are consistent with the rate model that has been prepared by FCS Consulting Group. The City is currently engaging in a stormwater rate study with FCS Consulting Group and will prepare a recommendation to be discussed with City Council in 2019. The 2019 forecast projects a 1% account growth. The surcharge of $3 per month, which has not changed since 2016, is projected at the same rate as in 2018. Changes to stormwater operating and maintenance rates and surcharge amounts may be recommended once the study is complete and reviewed by City Council. The number of utility accounts tend to grow in relationship to our population but also are impacted by commercial growth. In 2014, our population was 9,255 compared to 9,545 in 2018 which represents a 3.1% growth rate over four years. The growth rate in utility accounts from 2014 (4,680) to 2018 (4,959) reflect a growth rate of 6.0% over four years. The commercial account was 4.9% over the same period of time. In 2019, the City is projected to have a total of 5,009 water/sewer accounts with 450, or 9%, of those projected to be commercial accounts. Below is a chart demonstrating the growth in commercial and residential water/sewer accounts from 2014 through projected 2019: City of Port Townsend 2019 Budget Page 15 of 152 Total water / sewer / storm operations and surcharge revenue is forecasted to be $7,343,545 as compared to $6,985,131 in 2018, or a 5.1% increase. As noted earlier, this represents scheduled rate increases and 1% account growth. These totals do not include compost, yard waste, septage discharge and other miscellaneous utility revenue, which is projected to be $207,334 in 2019. Total Revenues: Total Budgeted 2019 revenue is projected at $34,940,280, comprised of capital funding of $6,228,566 and operating revenue of $28,711,714. Several operating funds such as the Streets Fund, Library Fund, Water / Sewer / Storm and Engineering Funds are intentionally projected to draw on cash reserves where current year revenues are not expected to cover current year expenditures. All but the storm operations fund still are projected to meet our fund balance reserve policies in 2019. As noted in the utility revenue section, a stormwater rate study is being conducted to determine appropriate rates and surcharges to cover our stormwater infrastructure and operations. We anticipate having to raise rates where this fund’s revenues will cover expenditures. The Library Fund is also undergoing a service analysis study, which will propose long- term strategies for funding the right service model at the city library. In addition, city staff are working on long-term funding proposals to adequately fund streets, parks, and facility maintenance. We look forward to presenting ideas to the City Council with proposals on maintaining these services in the future. City of Port Townsend 2019 Budget Page 16 of 152 Capital Revenues provide substantial funding for general government, street and utility projects through state and federal grants, public works trust fund loans, and drinking water state revolving fund proceeds. A smaller amount of capital funding may be administered with inter-fund loans, transfers, bank lines of credit or other debt financing. Additional details regarding capital projects are provided later in this document. KEY EXPENDITURE ASSUMPTIONS Labor Personnel Wages & Benefits represent a significant portion of the City’s operating expenses at $11,185,051 or 38.8% of proposed operating costs, $28,836,213. If you remove internal transfers and debt service from operating costs, staffing is 57.8% of the total. The City continues to balance the need to retain qualified, capable staff by providing fair and competitive wages while also maintaining appropriate service levels. 2019 will present both challenges and opportunities with our City Manager transition and as other long-term employees with a wealth of institutional knowledge retire. Succession planning has been a key approach to maintain adequate service levels. The 2019 proposed budget does not add any additional positions but does include City of Port Townsend 2019 Budget Page 17 of 152 additional funding for vacation payouts and position transition overlap. Total budgeted positions in 2019 are 109.2. The positions are outlined by position in the chart below: Employee groups include three sectors, the Police Collective Bargaining Unit, General Collective Bargaining Unit, and non-represented personnel. The Police Collective Bargaining Unit contract was finalized in early 2018. Adjustments were made to base rates in 2018 and wages were also contracted to increase 2.0% per year effective at the time of the contract signing through December 31, 2020. Due to vacancies in 2018, no supplemental appropriation requests were made for the contract wage changes. Assuming no vacancies, we budgeted 14.0 full time officers and 0.75 part-time reserve officers, which represents a 3.7% increase over 2018 budgeted wages and benefits for this unit. Retaining and recruiting officers continues to be a challenge, but the city believes it negotiated a fair contract that will encourage our officers to remain with us and attract new officers for existing vacancies. The General Collective Bargaining Unit is currently in negotiations so the impact to the budget is still unknown. That contract expires December 31, 2018, and negotiations may go in to early 2019. If necessary, the city will propose a supplemental budget request. The City budgeted a 2.0% increase, in line with the police contract, for non-represented staff. The non- represented employees include library, part-time pool, confidential City of Port Townsend 2019 Budget Page 18 of 152 administrative, legal and leadership positions which total 41.9 positions in the 2019 budget. A full list of authorized positions along with the position classification salary schedule approved by council in 2018 is included in the Staffing and Compensation section of the Budget Book. Benefits offered to employees include medical, dental, vision, long-term disability, life insurance and retirement. Medical costs for 2019 are forecast to increase by approximately 6.0% for the AWC benefit plan (general government non-represented employees), less the 2.0% well-city discount. To achieve the discount, AWC employees participate in a variety of wellness activities that promote a healthy life style. The Teamsters’ benefit plan which covers both the Police and General Government union employees is expected to increase 3.5% in 2019. Retirement contributions (PERS) are funded at 12.83% of eligible employee wages. This participation rate is mandated by the Washington State Retirement System. The employee participation share is 6.5 of gross wages. Employees also have the choice of enrolling in Washington State’s Deferred Compensation program which is not employer funded. The 2019 budget includes Seasonal Staff for Streets/Sewer/Wastewater Collection for 2 employees and an additional 2 seasonal employees for Parks maintenance. Seasonal staff are hired to work between May and October and are equivalent to 1.4 full time employees in the calendar year. Minimum wage for Washington is increasing to $12.00 per hour in 2019, which presents a challenge to hire seasonal workers for the city. In 2018, we were not able to recruit enough seasonal employees, so in 2019 we have budgeted these non-benefited employees at $15.00 hour. Non-Labor Operating non-labor expenditures are expected to maintain the status quo for 2019. Below is a list of budget expense highlights as compared to the 2018 adopted budget: General Government Funds: • General Fund – $90,000 increase in liability insurance through our WCIA insurance risk pool • General Fund - $46,000 increase in district court costs • General Fund – $10,000 increase in election costs for additional ballot measure regarding annexation in February • General Fund - $30,000 appropriation to hire a consultant to assess our inventory of software programs and provide recommendations for new platforms for financial and other technology services • Police Training - $5,000 increase for mandated training costs • General Fund - $40,500 increase in debt service payments for 2018 GO Taxable Bond (to be appropriated from council reserve) City of Port Townsend 2019 Budget Page 19 of 152 • General Fund – $15,000 increase for Granicus Live Media Updates and Code Publishing Updates • General Fund - $10,000 for travel stipends for City Manager recruitment • General Fund - $5,000 increase in recruitment costs for key leadership positions • General Fund - $8,000 increase for employee safety training program • General Fund - $237,600 increase for equipment maintenance & replacement contributions. This is primarily the result of eliminating equipment replacement for general government funds and placing a contingent equipment replacement of $159,500. The remaining increase is the outcome of the ER&R Fund analysis that was completed in 2018 which revealed underfunding that needed to be addressed in the 2018 supplemental appropriation request and the 2019 proposed budget. • General Fund - $60,705 increase in transfer to General & Street CIP funds to support general overhead allocation • Streets Fund – $15,000 increase in equipment for New Paint Striper • Streets Fund - $19,900 increase in equipment maintenance & repair contributions • Library Fund - $30,600 increase for information technology equipment maintenance and replacement • Community Services - $4,000 increase in mandated elevator testing • Community Services - $7,700 increase in equipment maintenance & repair contributions • Lodging Tax Fund - $76,000 contingent expense for capital improvements (pending recommendation from Lodging Tax Committee) • Fire & EMS Services Fund expense increase of $26,298 is related to increased property tax revenues that are passed through to East Jefferson Fire Rescue • Debt Service - $19,963 increased cost for general government debt service Utility Funds: • Water/Sewer Utilities – $337,245 increase in Public Works Trust Fund Loan payments for the water treatment facility and 5 mg reservoir loans • Water/Sewer Utilities - $35,000 repair of biosolids barn roof • Water/Sewer Utilities – $5,000 for respiratory safety equipment • Water/Sewer Utilities - $10,000 for consulting services for updating the rate study • Water/Sewer Utilities - $100,000 general maintenance / replacement of utility maintenance holes • Water/Sewer Utilities - $10,000 equipment purchase – hand push camera • Water/Sewer Utilities – $50,000 for legal counsel - Mill Rate negotiations • Water/Sewer Utilities - $61,700 increase in equipment repair, maintenance and replacement contributions • Storm Utilities – $18,200 Debt Service payments for CERB Loan • Storm Utilities - $12,000 equipment purchase – spare pump • Storm Utilities - $66,000 increase in equipment repair, maintenance and replacement contributions Internal Service Funds: • Engineering Services - $14,000 in ESRI software upgrade City of Port Townsend 2019 Budget Page 20 of 152 • Engineering Services - $4,000 increase in training costs for staff • Engineering Services - $18,000 increase equipment repair, maintenance and replacement contributions • Fleet / IT Internal Service Funds - $5,900 increase in equipment repair, maintenance and replacement contributions Proposed TOTAL 2019 Expenditures of $36,689,350 include all operating fund appropriations in addition to water, sewer, general and street capital funds. Transfers make up $5,969,605 or 16.3% of total expenditures. Transfers are internal accounting transactions expended in one fund and recognized as an equivalent revenue in another fund. Transfers in the chart below include a $985,000 operating fund transfer from the General Fund to support the Community Services Fund, $1,283,900 transfers from various funds to support the GO Debt Service Payments, $1,383,791 in utility debt service transfers, $126,035 transfer from the general fund to general and street capital funds to support overhead allocations, and $2,149,000 in capital transfers. Some intergovernmental expenditures are combined with professional services in 2019 per recommended reporting changes by the Washington State Auditor’s Office. These expenditures, previously reported separately, include excise taxes, and charges from other public entities such as Fire / EMS services, state audit fees, and Jefferson County Jail & Court services. The intergovernmental expenditures noted in the chart below include overhead allocations, engineering service charges to capital funds, and charges for equipment repair, maintenance and replacement. See the chart below for a breakout of TOTAL proposed appropriations in 2019: City of Port Townsend 2019 Budget Page 21 of 152 2019 proposed operating expenditures are $28,822,213 (not including capital funds, which include General and Street Capital, Engineering Services, System Development, Water / Sewer Capital, Transmission Line, Utility Debt Service and Storm Capital Funds). Operating expenditures are proposed to be $461,568 more than the 2018 adopted operating expenditures or an increase of 1.6%. Highlights of labor and non-labor operating expenditures were noted above but the increase of 1.6% primarily represents labor and benefit increases, and equipment maintenance & repair and replacement contributions. See the breakdown below of proposed 2019 Operating Expenses by Type: City of Port Townsend 2019 Budget Page 22 of 152 2019 CAPITAL PROJECTS The proposed 2019 budget has a variety of capital projects that adds both new infrastructure investment and improves aging infrastructure. A breakdown of planned projects is listed below and explained in more detail in the Capital Improvement Plan section of the budget document. General Government and Street Capital Projects: • Mountain View Phase III bond and Community Development Block Grant funded repairs and upgrades to facilities on the campus that houses the police station, pool and non-profit organizations is in its final phases in 2018 but will have some project close out items in early 2019 • Library capital for window replacements funded by 2017 bond funds • Library restroom improvements funded by the Library Foundation • Visitor’s Center Sims Way frontage improvements funded by 2017 bond funds • SR 20 Pedestrian Walkway design funded by 2017 bond funds • Jefferson Street Sidewalk project will be completed in early 2019 • Complete Streets projects funded by a grant received in 2017 • Discovery Road improvements primarily funded by WSDOT grant Water/Sewer and Stormwater Utility Capital Projects included in the 2019 capital budget that are currently underway and have secured funding sources: • Cherry Street 4 plex water line improvements funded with system development fund reserves and water/sewer operations transfers. • Water line replacements – funded with capital surcharge fees • Sewer Outfall project funded with System Development and Department of Ecology Loans/Grants • Gaines Street Pump Station corrosion control funded with sewer capital surcharge fees and system development fund reserves • Visitor Center public restroom design – possible funding from lodging tax funds • Logan Street Storm Pond design funded with storm capital surcharge fees • CERB regional stormwater project funded with CERB Loan funds and storm capital surcharge fees. 2019 COUNCIL AND CITY-WIDE GOALS The 2016 – 2018 three-year Strategic Plan for the City of Port Townsend, implemented in early 2016 has been a successful way to help focus the City’s objectives and actions. The 2019 budget is in alignment to continue this work and to recognize that 2019 is a transition year in many ways. The City Council and Senior Staff held a two-day facilitated retreat to review the 2016-2018 Strategic Plan and to plan for its successor going forward starting in 2019. The Council is finalizing the Strategic Plan for 2019 – 2022. What was agreed is to focus (not in any priority of one over the other) on five key areas: City of Port Townsend 2019 Budget Page 23 of 152 1. Economic Growth 2. Affordable Housing 3. Infrastructure Assets (Streets/Utilities/Parks) 4. City Organization 5. Community Quality of Life Council and staff also identified many objectives/actions to be implemented that are associated with these focus areas. The next phase will be to review and prioritize these objectives into an action plan for implementation starting as early as 2019 and continuing through 2022. Objectives and actions the city will focus on in 2019 include the following: • Re-establish our City’s mission statement and values statement • Develop and adopt three-year Strategic Plan for 2020-2022 • Recruit and on-board a new City Manager • Initiate a ballot measure to request fire annexation into the East Jefferson Fire and Rescue service district • Evaluation options for long-term financing solution for: o Street repair and maintenance and a Pavement Management Program o Parks and Recreation maintenance and programs o Library capital improvements • Continue to support community partners in identifying solutions for affordable housing DEFERRED MAINTENANCE AND UNMET NEEDS During the annual budget retreat, department heads came together to identify operating and capital improvement priorities. The City Manager considers these competing community and operating needs against available funding sources and recommends an annual balanced budget. These requests range from additional staffing and operating equipment to maintaining and replacing aging infrastructure. Some of the requested items identified by department heads that the city is not able to fund in 2019 are included in the table below. If funding does come available, such as unexpected increases in retail sales tax revenue, then the City Council can refer to this list to determine if the unmet need can be fulfilled. City of Port Townsend 2019 Budget Page 24 of 152 Ci t y of Po r t To w n s e n d 20 1 9 Bu d g e t Page 25 of 152 Mo u n t a i n V i e w Re p a i r & M a i n t e n a n c e 10 , 0 0 0 Fo y e r H e a t e r R e p l a c e m e n t Mo u n t a i n V i e w R e p a i r & M a i n t e n a n c e 30 , 0 0 0 Me e t i n g R o o m I m p r o v e m e n t s Fa c i l i t i e s / P a r k s W a g e s & B e n e f i t s 10 0 , 0 0 0 1.0 F T E - E v e n t s / F a c i l i t y / V o l u n t e e r C o o r d i n a t o r Fa c i l i t i e s R e p a i r & M a i n t e n a n c e 20 , 0 0 0 Po p e M a r i n e E x t e r i o r S i d i n g R e p l a c e m e n t Fa c i l i t i e s R e p a i r & M a i n t e n a n c e 15 , 0 0 0 Co t t o n B u i l d i n g - F l o o r i n g R e p l a c e m e n t Fa c i l i t i e s R e p a i r & M a i n t e n a n c e 6, 0 0 0 Pl a z a - R e p l a c e e l e c t r i c i t y o u t l e t s Fa c i l i t i e s R e p a i r & M a i n t e n a n c e 3, 0 0 0 Pi n k H o u s e - C a r p e t R e p l a c e m e n t Fa c i l i t i e s E q u i p m e n t 22 0 , 0 0 0 E l e v a t o r R e p l a c e m e n t ( C i t y H a l l & L i b r a r y ) - M a y ne e d t o r e p l a c e t h e H C H E l e v a t o r i n 2 0 1 8 w h i c h i s in l c u d e d i n l i n e o f c r e d i t f u n d i n g p r o p o s a l Pa r k s / T r a i l s R e p a i r & M a i n t e n a n c e 20 , 0 0 0 Do g P a r k a t M t n V i e w Pa r k s / T r a i l s R e p a i r & M a i n t e n a n c e 5, 0 0 0 Pu g e t S o u n d C r e w - T r a i l M a i n t e n a n c e Pa r k s / T r a i l s R e p a i r & M a i n t e n a n c e 15 , 0 0 0 K a i T a i B a t h r o o m R o o f R e p l a c e m e n t ( f u n d e d i n 2 0 1 8 ) Pa r k s / T r a i l s E q u i p m e n t 10 , 0 0 0 Ku b o t a U t i l i t y V e h i c l e Pa r k s / T r a i l s E q u i p m e n t 65 , 0 0 0 Du m p T r u c k Pa r k s / T r a i l s E q u i p m e n t 4, 0 0 0 En c l o s e d C a r g o T r a i l e r Pa r k s / T r a i l s W a g e s & B e n e f i t s 10 0 , 0 0 0 R e s t o r a t i o n o f 1 . 0 P a r k s M a i n t e n a n c e F T E Po o l E q u i p m e n t 1, 5 0 0 Dri n k i n g F o u n t a i n w i t h B o t t l e F i l l e r Po o l E q u i p m e n t 43 , 0 0 0 In f l a t a b l e P l a y g r o u n d , S l i d e , C l i m b i n g W a l l Ar t s C o m m i s s i o n G r a n t f u n d i n g f o r t h e a r t s - 8, 9 7 2 A r t s c o m m i s s i o n r e q u e s t e d a n i n c r e a s e i n f u n d i n g ov e r 2 0 1 8 . T o t a l C o m m u n i t y S e r v i c e s P e r s o n n e l / N o n P e r s o n n e l I t e m s 46 2 , 5 0 0 21 3 , 9 7 2 St r e e t s E q u i p m e n t 15 , 0 0 0 Sh e r i d a n S t r e e t Z o n e F l a s h e r s T o t a l G e n e r a l C a p i t a l F u n d P e r s o n n e l / N o n P e r s o n n e l I t e m s 15 , 0 0 0 - Uti l i t y B i l l i n g S o f t w a r e 12 5 , 0 0 0 20 , 0 0 0 F i n a n c i a l S o f t w a r e C o n v e r s i o n ( c o s t w i l l b e s p l i t w i t h G/ F F i n a n c e ) Uti l i t y B i l l i n g S o f t w a r e 20 , 0 0 0 2, 0 0 0 F i x e d A s s e t S o f t w a r e ( C o s t w i l l b e s p l i t w i t h G / F Fi n a n c e ) Uti l i t y B i l l i n g S o f t w a r e 5, 0 0 0 50 0 P r o j e c t M a n a g e m e n t S o f t w a r e ( C a p i t a l T r a c k i n g & Re p o r t i n g ) T o t a l U t i l i t y F u n d P e r s o n n e l / N o n P e r s o n n e l I t e m s - - En g i n e e r i n g S e r v i c e s E q u i p m e n t / P r o f e s s i o n a l S e r v i c e s 30 , 0 0 0 1, 0 0 0 GIS S o f t w a r e U p g r a d e s T o t a l D e f e r r e d E n g i n e e r i n g P e r s o n n e l / N o n P e r s o n n e l I t e m s 30 , 0 0 0 1, 0 0 0 E q u i p m e n t 12 , 0 0 0 F u e l T a n k M o n i t o r U p g r a d e T o t a l E q u i p m e n t R e n t a l F u n d P e r s o n n e l / N o n P e r s o n n e l I t e m s 12 , 0 0 0 - To t a l D e f e r r e d & U n f u n d e d P e r s o n n e l & N o n P e r s o n n e l I t e m s 1, 0 0 3 , 6 9 4 80 3 , 2 2 2 Eq u i p m e n t M a i n t e n a n c e & R e p l a c e m e n t F u n d s Co m m u n i t y S e r v i c e s F u n d Ge n e r a l & S t r e e t C a p i t a l F u n d s Ut i l i t y F u n d s En g i n e e r i n g S e r v i c e s Fu n d / D e p a r t m e n t De s c r i p t i o n o f I t e m O n e T i m e O n g o i n g E x p l a n a t i o n Ci t y o f P o r t T o w n s e n d Un m e t N e e d s - D e f e r r e d & U n f u n d e d I t e m s Bu d g e t 2 0 1 9 Ci t y of Po r t To w n s e n d 20 1 9 Bu d g e t Page 26 of 152 Ordinance 3209 ORDINANCE NO. 3209 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PORT TOWNSEND, WASHINGTON, ADOPTING 2018 SUPPLEMENTAL #2 BUDGET APPROPRIATIONS WHEREAS, the City Council adopted an additional supplemental budget per Ordinance 3196 on April 16, 2018 and was set forth in the document entitled "City of Port Townsend Budget 2018 Supplemental Fund Summary"; and WHEREAS, the City Manager of the City of Port Townsend, Washington completed and filed an additional proposed supplemental budget for 2018 on November 5, 2018; and WHEREAS, the City Council reviewed the second supplemental budget and held a public hearing on November 5, 2018 and considered the matter further on November 13, 2018; NOW, THEREFORE, the City Council of the City of Port Townsend, Washington, do ordain as follows: Section 1. The second supplemental budget for the City of Port Townsend, Washington, for the fiscal year 2018, is adopted as set forth in the document entitled "City of Port Townsend Budget 2018 Supplemental Fund Summary #2", a copy of which is on file with the office of the City Clerk, and is incorporated into this Ordinance. The budget supplemental #2 summary is attached as Exhibit A, making revenue and expenditure revisions. Section 2. This Ordinance shall take effect upon its passage, approval, and publication in the form and manner provided by law. ADOPTED by the City Council of the City of Port Townsend, Washington, by a vote of the majority of the City Council plus one, at a special business meeting thereof, held this 13th day of November, 2018. Attest: Joanna Sanders, MMC City Clerk Deborahh S. Stin o _.. Mayor Approved as to legalform: City Attorney City of Port Townsend 2019 Budget Page 27 of 152 City of Port Townsend 2019 Budget Page 28 of 152 2017 2018 2018 2018 2018 2018 2018 2018 2018 Ending Fund Adopted Amended Adopted Amended Adopted Amended Proposed Supplemental Projected Ending Fund Balance Revenues Revenues Expenses Expenses Rev vs. Exp Rev vs. Exp Appropriation Balance GENERAL FUND 1,776,966 8,638,366 9,086,301 8,609,857 9,396,000 28,509 (309,699) 786,143 1,467,266 Drug Enforc. / Contingency 171,343 500 10,488 - - 500 10,488 - 181,831 Street 380,772 837,942 860,995 819,082 1,015,710 18,860 (154,715) 196,628 226,057 Library 240,915 1,077,601 1,084,337 1,093,379 1,127,585 (15,778) (43,248) 34,206 197,667 Real Estate Excise Tax 301,052 510,100 541,634 545,000 540,000 (34,900) 1,634 - 302,686 Lodging Tax 252,500 480,000 551,080 479,838 547,338 162 3,742 67,500 256,242 Fire / EMS 2,525 2,385,876 2,386,441 2,385,276 2,385,276 600 1,165 - 3,690 Affordable Housing 10,922 10,000 10,108 10,000 10,000 - 108 - 11,030 Community Development Block Grant 168,421 13,623 44,008 15,000 40,000 (1,377) 4,008 25,000 172,429 Community Services 88,594 2,013,448 2,167,982 2,012,560 2,150,776 888 17,206 138,216 105,800 TOTAL SPECIAL REV FUNDS 1,617,044 7,329,090 7,657,073 7,360,135 7,816,684 (31,045) (159,611) 461,549 1,457,433 DEBT SERVICE FUND 86,746 1,675,155 1,667,678 1,645,656 1,666,892 29,499 786 21,236 87,532 General Capital 3,419,308 2,073,528 2,703,820 5,451,841 4,668,841 (3,378,313) (1,965,021) - 1,454,287 Street Capital (328,825) 3,399,289 3,452,100 3,446,989 2,918,160 (47,700) 533,940 - 205,115 CAPITAL PROJECTS FUNDS 3,090,483 5,472,817 6,155,920 8,898,830 7,587,001 (3,426,013) (1,431,081) - 1,659,402 System Development 1,715,738 315,290 316,927 1,080,000 1,110,000 (764,710) (793,073) 30,000 922,665 Water / Sewer Operations 3,327,671 6,216,957 6,579,758 7,861,874 7,779,394 (1,644,917) (1,199,636) - 2,128,035 Water / Sewer Capital 1,425,356 7,370,272 7,405,205 6,547,915 6,362,121 822,357 1,043,084 - 2,468,441 Storm Operations 175,136 738,018 743,812 765,137 778,574 (27,119) (34,762) 13,437 140,374 Storm Capital (28,016) 1,070,600 628,000 1,220,000 600,000 (149,400) 28,000 - (16) ENTERPRISE FUNDS 6,615,886 15,711,137 15,673,702 17,474,927 16,630,088 (1,763,790) (956,387) 43,437 5,659,499 Public Works Admin 26,226 584,573 560,770 584,272 561,145 301 (375) - 25,851 Equipment Rental & Replacement 714,117 1,370,391 2,163,790 1,465,655 1,444,064 (95,264) 719,726 - 1,433,843 Engineering Services 210,781 1,009,500 1,040,734 1,042,564 1,065,865 (33,064) (25,131) 23,301 185,650 Unemployment Self-Insurance 24,832 19,620 46,598 19,500 46,416 120 182 26,916 25,014 INTERNAL SERVICE FUNDS 975,956 2,984,084 3,811,892 3,111,991 3,117,490 (127,907) 694,402 50,217 1,670,358 Firemen's Pension 231,925 34,735 36,163 27,140 27,140 7,595 9,023 - 240,948 Agency / Refundable Deposits 77,534 - 548 - - - 548 - 78,082 Memorial Fund 2,549 - - - - - - - 2,549 Golf Course Fund 42,296 12,000 10,267 21,419 40,419 (9,419) (30,152) 19,000 12,144 FIDUCIARY FUNDS 354,304 46,735 46,978 48,559 67,559 (1,824) (20,581) 19,000 333,723 GRAND TOTAL 14,517,385 41,857,384 44,099,544 47,149,955 46,281,716 (5,292,571) (2,182,171) 1,381,583 12,335,213 City of Port Townsend Projected 2018 Fund Summary - Supplemental Budget Run Date: 10/25/2018 City of Port Townsend 2019 Budget Page 29 of 152 City of Port Townsend 2019 Budget Page 30 of 152 Ci t y o f P o r t T o w n s e n d Up d a t e d o n 1 0 / 2 5 / 1 8 De s c r i p t i o n Fu n d De p a r t m e n t O n g o i n g v s o n e - t i m e 2 0 1 8 E x p e n s e In c r e a s e / (D e c r e a s e ) Ex p l a n a t i o n Pr o f e s s i o n a l S e r v i c e s - D S D - S u b - a r e a p l a n G e n e r a l F u n d DS D / P l a n n i n g o n e t i m e 7 0 , 0 0 0 Su b a r e a p l a n c o n s u l t i n g 70 , 0 0 0 Pr o f e s s i o n a l S e r v i c e s - D S D - S u b - a r e a p l a n G e n e r a l F u n d DS D / P l a n n i n g o n e t i m e 3 0 , 0 0 0 Su b a r e a p l a n c o n s u l t i n g Ci t y M a n a g e r C o n t r a c t E x t e n s i o n Ge n e r a l F u n d Ci t y M a n a g e r on e t i m e 22 , 0 0 0 Ap p r o v e d c o n t r a c t s a l a r y & b e n e f i t i n c r e a s e f o r 6 m o n t h c o n t r a c t extension Di s t r i c t C o u r t S e r v i c e s Ge n e r a l F u n d Ci t y A t t o r n e y on g o i n g 52 , 0 0 0 In c r e a s e d C i t y s h a r e o f Mu n i c i p a l C o u r t C o s t s Pr o f e s s i o n a l S v s . - L e a d e r s h i p D e v e l o p m e n t G e n e r a l F u n d HR on g o i n g 5, 0 0 0 Co n t r a c t e d S e r v i c e s f o r L e a d e r s h i p D e v e l o p m e n t PE G C a p i t a l E q u i p m e n t Ge n e r a l F u n d PE G on e t i m e 25 , 0 0 0 Re p l a c e m e n t o f v i d e o s e r v e r a n d r e p l a c e m e n t e q u i p m e n t Re f u n d s Ge n e r a l F u n d DS D / F i n a n c e on g o i n g 10 , 0 0 0 Re f u n d s f o r C a n c e l l e d p e r m i t s a n d O v e r p a y m e n t s o f B & O t a x e s Eq u i p m e n t R e n t a l & R e p l a c e m e n t Ge n e r a l F u n d Po l i c e on g o i n g 14 2 , 0 0 0 In c r e a s e d c o s t o f m a i n t e n a n c e o f f l e e t a n d t e c h n o l o g y Eq u i p m e n t R e n t a l & R e p l a c e m e n t Ge n e r a l F u n d Ge n e r a l on e t i m e 75 , 0 0 0 Tr a n s f e r t o E R & R F u n d t o f u n d I T M a i n t e n a n c e F u n d b e g i n n i n g b a l ance in 2019 Eq u i p m e n t R e n t a l & R e p l a c e m e n t Ge n e r a l F u n d Ge n e r a l on e t i m e 26 7 , 0 0 0 Tr a n s f e r t o E R & R F u n d t o f u n d I n f o r m a t i o n T e c h n o l o g y O p e r a t i n g & Maitenance deficit Co m m u n i t y S e r v i c e s Ge n e r a l F u n d Ge n e r a l on e t i m e 90 , 0 0 0 Tr a n s f e r t o f u n d c o m m u n i t y s e r v i c e s - p a r k s , f a c i l i t i e s , p o o l & MV Ge n e r a l E x p e n s e S a v i n g s fr o m B u d g e t G e n e r a l F u n d Ge n e r a l o n e t i m e ( 1 , 8 5 7 ) Va r i o u s o t h e r s a v i n g s i n g e n e r a l f u n d e x p e n s e l i n e i t e m s 71 6 , 1 4 3 70 , 0 0 0 78 6 , 1 4 3 Ot h e r I m p r o v e m e n t s St r e e t O p e r F u n d Ma i n t e n a n c e o n e t i m e 92 , 0 0 0 Ci t y C o u n c i l a p p r o v e d a d d i t i o n a l s tr e e t m a i n t e n a n c e / i m p r o v e m e n t projects Eq u i p m e n t R e n t a l & R e p l a c e m e n t St r e e t O p e r F u n d Ma i n t e n a n c e o n g o i n g 46 , 0 0 0 In c r e a s e d c o s t o f m a i n t e n a n c e o f f l e e t a n d t e c h n o l o g y Ut i l i t i e s St r e e t O p e r F u n d Ma i n t e n a n c e o n g o i n g 20 , 0 0 0 In c r e a s e d c o s t s o f s t r e e t l i g h t e l e c t r i c i t y c o s t s PW A d m i n i s t r a t i o n O H A l l o c a t i o n St r e e t O p e r F u n d Ma i n t e n a n c e o n g o i n g 22 , 3 0 0 Re a l l o c a t i o n o f P W A d m i n i s t r a t i o n c o s t s - u p d a t e d c o s t a l l o c a t i on model Al l o c a t e 0 . 2 5 F l e e t F T E t o St r e e t O p s S t r e e t O p e r F u n d Ma i n t e n a n c e o n g o i n g 11 , 5 0 0 Me c h a n i c a s s i s t w i t h s t r e e t o pe r a t i o n s w o r k 2 5 % a l l o c a t i o n Va r i o u s St r e e t O p e r F u n d Ma i n t e n a n c e o n e t i m e 4, 8 2 8 Mi n o r e x p e n s e i n c r e a s e s / d e c r e a s e s n e t t o t a l 19 6 , 6 2 8 Eq u i p m e n t R e n t a l & R e p l a c e m e n t Lib r a r y Li b r a r y o n g o i n g 11 , 0 0 0 In c r e a s e d c o s t o f m a i n t e n a n c e o f f l e e t a n d t e c h n o l o g y Ut i l i t y S e r v i c e s Lib r a r y Li b r a r y o n g o i n g 6, 4 0 0 Ut i l i t y r a t e i n c r e a s e s n o t b u d g e t e d Pr o f e s s i o n a l S e r v i c e s Lib r a r y Li b r a r y o n e - t i m e 15 , 0 0 0 Co n s u l t i n g a g r e e m e n t f o r B i r k s t u d y Va r i o u s Lib r a r y Li b r a r y o n e - t i m e 1, 8 0 6 Va r i o u s e x p e n s e i n c r e a s e s / d e c r e a s e s n e t t o t a l $ 2 0 0 0 34 , 2 0 6 To t a l G e n e r a l F u n d R e - a p p r o p r i a t io n s ( f r o m 2 0 1 7 B u d g e t e d A p p r o p ri a t i o n s ) 20 1 8 S u p p l e m e n t a l B u d g e t A m e n d m e n t # 2 R e a p p r o p r i a t i o n s f r o m 2 0 1 7 B u d g e t To t a l R e a p p r o p r i a t i o n s Ge n e r a l F u n d - S u p p l e m e n t a l A p p r o p r i a t i o n s Ge n e r a l F u n d S u p p l e m e n t a l A p p r o p r i a t o n s To t a l G e n e r a l F u n d A d d i t i o n a l A p p r o p r i a t i o n s St r e e t O p e r a t i o n s F u n d - S u p pl e m e n t a l A p p r o p r i a t i o n s To t a l S t r e e t s O p e r a t i o n F u nd S u p p l e m e n t a l A p p r o p r i a t o n s Li b r a r y F u n d - S u p p l e m e n t a l A p p r o p r i a t i o n s To t a l L i b r a r y F u n d S u p p l e m e n t a l A p p r o p r i a t o n s 1 Ci t y of Po r t To w n s e n d 20 1 9 Bu d g e t Page 31 of 152 Ci t y o f P o r t T o w n s e n d Up d a t e d o n 1 0 / 2 5 / 1 8 De s c r i p t i o n Fu n d De p a r t m e n t O n g o i n g v s o n e - t i m e 2 0 1 8 E x p e n s e In c r e a s e / (D e c r e a s e ) Ex p l a n a t i o n 20 1 8 S u p p l e m e n t a l B u d g e t A m e n d m e n t # 2 Pr o f e s s i o n a l S e r v i c e s C h a m b e r Lo d g i n g T a x F u n d To u r i s m o n e t i m e 61 , 0 0 0 Su p p o r t T o u r s i m E v e n t F a c i l i t y R e nt a l F e e s & J o i n g M a r k e t i n g w i th Port To u r i s m P r o m o t i o n Lo d g i n g T a x F u n d To u r i s m o n e t i m e 6, 5 0 0 Ho t e l V a c a n c y S t u d y - A s r e c o mm e n d e d b y L o d g i n g T a x C o m m i t t e e 67 , 5 0 0 Gr a n t t o B e l m o n t H o t e l CD B G CD B G o n e t i m e 25 , 0 0 0 In c r e a s e i n l o a n s t o l o c a l b u s i n es s e s - l o a n t o B e l m o n t f o r $ 4 0 ,000 approved 25 , 0 0 0 Eq u i p m e n t R e n t a l & R e p l a c m e n t Co m m u n i t y S e r v i c e s Al l D e p t s o n g o i n g 32 , 0 0 0 In c r e a s e d c o s t o f m a i n t e n a n c e o f f l e e t a n d t e c h n o l o g y Po o l S a l a r i e s Co m m u n i t y S e r v i c e s Po o l o n g o i n g 24 , 0 0 0 In c r e a s e d c o s t o f p o o l o p e r a t i o n s & o v e r t i m e Re p a i r o f K a i T a i R e s t r o o m R o o f Co m m u n i t y S e r v i c e s Fa c i l i t i e s o n e - t i m e 18 , 0 0 0 Re p l a c e K a i T a i r e s t r o o m r o o f f o l l o w i n g f i r e Re p a i r & M a i n t e n a n c e Co m m u n i t y S e r v i c e s Fa c i l i t i e s o n e - t i m e 14 , 0 0 0 Ch e t z m o k a g a z e b o r e p a i r & f e n c e d e m o r e p a i r Re p a i r & M a i n t e n a n c e Co m m u n i t y S e r v i c e s Fa c i l i t i e s o n e - t i m e 11 0 , 0 0 0 Pe n d i n g E l e v a t o r R e p l a c e m e n t a t L i b r a r y Va r i o u s Co m m u n i t y S e r v i c e s Al l D e p t s o n e - t i m e (1 9 , 7 8 4 ) Va r i o u s e x p e n s e i n c r e a s e s / d e c r e a s e s n e t t o t a l Pr o p a n e S a v i n g s Co m m u n i t y S e r v i c e s Fa c i l i t i e s / P o o l o n g o i n g (4 0 , 0 0 0 ) Co n t r a c t p r i c i n g c o r r e c t e d w i t h p r o p a n e p r o v i d e r 13 8 , 2 1 6 GO B o n d L o n g T e r m I n t e r e s t GO D e b t S e r v i c e F u n d N/ A o n g o i n g 21 , 2 3 6 In t e r e s t e x p e n s e o n l o a n r e l a t e d t o H o m e w a r d B o u n d / C h e r r y S t r e e t project 21 , 2 3 6 Eq u i p m e n t R e n t a l & R e p l a c m e n t St o r m Op e r a t i o n s on e t i m e 45 , 5 0 0 In c r e a s e d c o s t o f m a i n t e n a n c e o f f l e e t a n d t e c h n o l o g y St o r m O p e r a t i o n s St o r m Op e r a t i o n s on e t i m e 5, 9 0 0 St o r m r a t e s t u d y e n g a g e m e n t w i t h F C S ; c o s t h i g h e r t h a n o r i g i n a l budget Ot h e r I m p r o v e m e n t s St o r m Op e r a t i o n s on e t i m e 15 , 0 0 0 Bu d g e t e d O t h e r I m p r o v e m e n t s d i d n o t o c c u r i n 2 0 1 8 St o r m O p e r a t i o n s St o r m Op e r a t i o n s on e t i m e (2 0 , 0 0 0 ) Tr a n s f e r t o S t o r m C a p i t a l F u n d r e d u c e d a f t e r c a p i t a l p l a n r e v i s ed St o r m O p e r a t i o n s St o r m Op e r a t i o n s on e t i m e (2 , 9 6 3 ) Va r i o u s e x p e n s e i n c r e a s e s / d e c r e a s e s n e t t o t a l 43 , 4 3 7 Eq u i p m e n t R e n t a l & R e p la c e m e n t E n g i n e e r i n g En g i n e e r i n g o n g o i n g 2 3 , 3 0 1 In c r e a s e d c o s t o f m a i n t e n a n c e o f f l e e t a n d t e c h n o l o g y Un e m p l o y m e n t C l a i m s Un e m p l o y m e n t S e l f In s u r a n c e F u n d Un a s s i g n e d M o n i t o r c l a i m s a c t i v i t y - va r i e s 26 , 9 1 6 Ac t u a l c l a i m s f i l e d ( P o l i c e , L ib r a r y , C o m m S v s , W t r / S w r F u n d s ) 50 , 2 1 7 Co m m u n i t y S e r v i c e s F u n d - S u p p l e m e n t a l A p p r o p r i a t i o n s To t a l C o m m u n i t y S v s . F u n d S u p p l e m e n t a l A p p r o p r i a t o n s GO B O N D D e b t S v s F u n d - S u pp l e m e n t a l A p p r o p r i a t i o n s To t a l G O B o n d D e b t S e r v i c e F u n d S u p p l e m e n t a l A p p r o p r i a t o n s I n t e r n a l S e r v i c e F u n d s - S up p l e m e n t a l A p p r o p r i a t o n s To t a l I n t e r n a l S e r v i c e F u n d S u p p l e m e n t a l A p p r o p r i a t i o n s E n t e r p r i s e F u n d s - S u p p l em e n t a l A p p r o p r i a t o n s To t a l E n t e r p r i s e F u n d S u p pl e m e n t a l A p p r o p r i a t o n s Lo d g i n g T a x F u n d - S u p p l e m e n t a l A p p r o p r i a t i o n s Co m m u n i t y D e v e l o p me n t B l o c k G r a n t To t a l C o m m u n t i y D e v e l o p m e n t B l o c k G r a n t F u n d S u p p l e m e n t a l A p p r o pr i a t o n s To t a l L o d g i n g T a x F u n d S u p p l e m e n t a l A p p r o p r i a t o n s 2 Ci t y of Po r t To w n s e n d 20 1 9 Bu d g e t Page 32 of 152 Ci t y o f P o r t T o w n s e n d Up d a t e d o n 1 0 / 2 5 / 1 8 De s c r i p t i o n Fu n d De p a r t m e n t O n g o i n g v s o n e - t i m e 2 0 1 8 E x p e n s e In c r e a s e / (D e c r e a s e ) Ex p l a n a t i o n 20 1 8 S u p p l e m e n t a l B u d g e t A m e n d m e n t # 2 Go l f C o u r s e S t u d y Go l f C o u r s e Go l f C o u r s e o n e - t i m e 19 , 0 0 0 Co n t r a c t w i t h N a t i o n a l G o l f F o u n d a t i o n 19 , 0 0 0 1, 3 8 1 , 5 8 3 TO T A L A L L F U N D S - S U P P L E M E N T A L A P P R O P R I A T I O N S F i d u c i a r y F u n d s - S u p p l e m e n t a l A p p r o p r i a t o n s To t a l F i d u c i a r y F u n d S u p p l e m e n t a l A p p r o p r i a t i o n s 3 Ci t y of Po r t To w n s e n d 20 1 9 Bu d g e t Page 33 of 152 Ci t y of Po r t To w n s e n d 20 1 9 Bu d g e t Page 34 of 152 Ordinance 3212 Page 1 of2 ORDINANCE NO. 3212 AN ORDINANCE ADOPTING THE BUDGET FOR THE CITY OF PORT TOWNSEND, WASHINGTON, FOR THE FISCAL YEAR ENDING DECEMBER 31, 2019 WHEREAS, the City Manager of the City of Port Townsend, Washington, completed and placed on file with the City Clerk a proposed budget and estimate of the amount of monies required to meet the public expenses, bond retirement and interest, reserve funds and expenses of government of the City for the fiscal year ending December 31, 2019 (the "2019 Preliminary Budget"), and a notice was published that the City Council would conduct a public hearing on the 5th of November 2018 at 6:30 p.m., at City Hall for the purpose of receiving public testimony regarding the preliminary budget for the 2019 fiscal year; and WHEREAS, the City Council held a public hearing on November 5, 2018 at which all taxpayers were heard who appeared for or against any part of the preliminary budget; and WHEREAS, following the public hearing, the City Council met in City Council Chambers on November 13, 2018 and November 19, 2018 to consider the 2019 Final Budget and receive further public comment, and made adoptions and changes, as it deemed necessary and proper; and WHEREAS, the 2019 Budget does not exceed the lawful limit of taxation allowed by law to be levied on the property within the City of Port Townsend for the purposes set forth in the 2019 Final Budget, and the estimated expenditures in each fund set forth in the 2019 Final Budget are all necessary to carry on the government of the City for fiscal year 2019, and are all necessary to meet the various needs of the City during the period; NOW, THEREFORE, the City Council of the City of Port Townsend, Washington, do ordain as follows: Section 1. The budget for the City of Port Townsend, Washington, for the fiscal year 2019, is hereby adopted at the fund level as set forth in the document entitled "City of Port Townsend Final Budget 2019," a copy of which has been and now is on file with the office of the City Clerk, and by this reference is incorporated into this Ordinance. Section 2. Estimated revenues, including fund balances for working capital for each separate fund ofthe City of Port Townsend, and aggregate totals for all such funds combined, for the year 2019, are set forth in summary form in Exhibit A attached, and by this reference are incorporated in this Ordinance, and are appropriated for expenditure at the fund level during the 2019 budget year. City of Port Townsend 2019 Budget Page 35 of 152 Ordinance 3212 Page 2 of2 Section 3. The City Clerk is directed to transmit a certified copy of the City of Port Townsend Final Budget 2019 to the Office of State Auditor and to the Association of Washington Cities. Section 4. This Ordinance shall take effect upon its passage, approval, and publication in the form and manner provided by law. ADOPTED by the City Council of the City of Port Townsend, Washington, at a regular meeting thereof, held this 19th day of November, 2018. Attest: Joanna Sanders MMC City Clerk Deborah S. t`, ason Mayor Approved as to Form: fieidi Greenw ocl City Attorney City of Port Townsend 2019 Budget Page 36 of 152 2018 2019 2019 2019 2019 Estimated Proposed Proposed Proposed Proposed Balance Revenues Expenses Rev vs. Exp Balance GENERAL FUND 1,467,266 9,101,543 9,097,115 4,428 1,471,694 Drug Enforc. / Contingency 181,831 1,200 - 1,200 183,031 Street 226,057 870,803 930,573 (59,770) 166,287 Library 197,667 1,097,144 1,161,673 (64,529) 133,138 Real Estate Excise Tax 302,686 512,200 510,000 2,200 304,886 Lodging Tax 256,242 550,750 572,908 (22,158) 234,084 Fire / EMS 3,690 2,412,574 2,411,574 1,000 4,690 Affordable Housing 11,030 10,100 10,000 100 11,130 Community Development Block Grant 172,429 14,424 15,000 (576) 171,853 Community Services 105,800 2,016,792 2,010,775 6,017 111,817 TOTAL SPECIAL REV FUNDS 1,457,433 7,485,987 7,622,503 (136,516) 1,320,917 DEBT SERVICE FUND 87,532 1,698,035 1,686,855 11,180 98,712 General Capital 1,454,287 296,831 1,706,931 (1,410,100) 44,187 Street Capital 205,115 1,841,829 2,040,991 (199,162) 5,953 CAPITAL PROJECTS FUNDS 1,659,402 2,138,660 3,747,922 (1,609,262) 50,140 System Development 922,665 338,452 600,000 (261,548) 661,117 Water / Sewer Operations 2,128,035 6,957,366 7,059,994 (102,628) 2,025,407 Water / Sewer Capital 2,468,441 2,761,454 2,551,215 210,239 2,678,680 Storm Operations 140,374 747,859 781,074 (33,215) 107,159 Storm Capital (16) 990,000 968,000 22,000 21,984 ENTERPRISE FUNDS 5,659,499 11,795,131 11,960,283 (165,152) 5,494,347 Public Works Admin 25,851 611,802 594,272 17,530 43,381 Equipment Rental & Replacement 1,433,843 1,148,957 942,310 206,647 1,640,490 Engineering Services 185,650 894,000 982,310 (88,310) 97,340 Unemployment Self-Insurance 25,014 20,180 20,000 180 25,194 INTERNAL SERVICE FUNDS 1,670,358 2,674,939 2,538,892 136,047 1,806,405 Firemen's Pension 240,948 35,735 17,551 18,184 259,132 Agency / Refundable Deposits 78,082 - - - 78,082 Memorial Fund 2,549 - - - 2,549 Golf Course Fund 12,144 10,250 18,229 (7,979) 4,165 FIDUCIARY FUNDS 333,723 45,985 35,780 10,205 343,928 GRAND TOTAL 12,335,213 34,940,280 36,689,350 (1,749,070) 10,586,144 City of Port Townsend City Manager Proposed 2019 Fund Summary Run Date: 11/14/2018 City of Port Townsend 2019 Budget Page 37 of 152 City of Port Townsend 2019 Budget Page 38 of 152 2019 BUDGET SUMMARIES BY FUND TABLE OF CONTENTS PAGE FUND 7 GENERAL FUND 8 DRUG ENFORCEMENT / CONTINGENCY FUND 9 STREET FUND 10 LIBRARY FUND 11 REAL ESTATE EXCISE TAX FUND 12 LODGING TAX FUND 13 FIRE / EMS FUND 14 AFFORDABLE HOUSING FUND 15 COMMUNITY DEVELOPMENT BLOCK GRANTS 16 COMMUNITY SERVICES FUND 17 GENERAL OBLIGATION DEBT SERVICE FUND 18 GENERAL CAPITAL PROJECTS 19 STREET CAPITAL PROJECTS 20 SYSTEM DEVELOPMENT CHARGES FUND 21 WATER/SEWER OPERATIONS FUND 22 WATER/SEWER CAPITAL PROJECTS 23 STORMWATER OPERATIONS FUND 24 STORMWATER CAPITAL PROJECTS 25 PUBLIC WORKS ADMININSTRATION 26 EQUIPMENT RENTAL & REPLACEMENT FUND 27 ENGINEERING FUND 28 UNEMPLOYMENT RESERVE FUND 29 FIREMAN'S PENSION FUND 30 GOLF COURSE FUND City of Port Townsend 2019 Budget Page 39 of 152 City of Port Townsend 2019 Budget Page 40 of 152 PRELIMINARY 2016 2017 2018 2018 2019 Increase/Decrease Actual Actual Adopted Supplemental Proposed 2019 Proposed vs 2018 Adopted Beginning Fund Balance 976,386 1,421,392 1,776,966 1,776,966 1,467,266 Revenues Taxes 6,086,252 6,229,393 6,238,203 6,560,552 6,619,488 6.1% Licenses & Permits 441,525 389,926 368,250 372,250 393,090 6.7% Intergovernmental Services 283,736 234,154 228,425 252,310 244,864 7.2% Charges for Goods & Services 1,295,097 1,477,229 1,679,988 1,748,817 1,701,376 1.3% Fines & Penalties 57,971 50,933 50,300 48,787 52,300 4.0% Miscellaneous Revenue 44,082 68,446 69,200 99,671 86,425 24.9% Other Financing Sources 5,830 257,495 4,000 3,914 4,000 0.0% Operating Transfers In 62,075 10,150 - - - Total Revenue 8,276,569 8,717,726 8,638,366 9,086,301 9,101,543 5.4% Expenditures Salaries & Wages 3,035,028 3,104,370 3,274,005 3,291,231 3,420,298 4.5% Personnel Benefits 1,258,135 1,268,171 1,479,414 1,463,332 1,463,016 -1.1% Supplies 48,749 55,226 69,349 72,600 73,053 5.3% Insurance 308,304 356,571 401,755 402,567 493,276 22.8% Professional Services 159,780 297,348 165,841 297,931 1,019,450 514.7% Communications 55,592 59,497 62,452 62,452 60,476 -3.2% Advertising 32,509 39,537 43,250 22,250 40,950 -5.3% Operating Rents & Leases 51,118 52,433 52,532 55,115 57,132 8.8% Intergovernemental Services 723,157 806,212 813,191 889,233 - -100.0% Machinery & Equipment 70,736 88,289 64,130 87,130 219,920 242.9% Repair & Maintenance 28,119 24,728 26,674 27,874 35,748 34.0% Equipment Rental 267,319 303,930 303,930 446,058 382,101 25.7% Training/Memberships & Travel 35,541 90,468 125,404 121,415 141,249 12.6% Miscellaneous 91,930 302,547 131,760 125,557 78,411 -40.5% Transfers Out 1,665,547 1,512,826 1,596,170 2,031,255 1,612,035 1.0% Total Expenditure 7,831,563 8,362,153 8,609,857 9,396,000 9,097,115 5.7% Net Change in Fund Balance 445,006 355,574 28,509 (309,699) 4,428 -84.5% Ending Fund Balance 1,421,392 1,776,966 1,805,475 1,467,266 1,471,694 Fund Bal. 8-15 % of Revenue 17.2%20.4%20.9%16.1%16.2%Meets Policy General Fund - Expenditures by Department Mayor & Council 124,273 163,466 138,179 145,666 120,729 -10.9% City Manager 309,134 354,010 324,616 341,706 327,249 -3.5% City Attorney 526,552 553,724 603,369 667,710 647,519 20.6% Human Resources 621,630 373,240 418,159 424,331 414,680 13.7% Planning & Development Services 907,400 1,042,027 1,026,670 1,110,137 1,089,287 6.5% Finance Department 317,984 295,449 343,652 342,356 351,727 15.9% Police Administration 445,849 505,149 637,491 627,199 646,119 24.2% Police Operations 2,520,447 2,603,645 2,666,362 2,821,422 2,808,809 8.4% Police Training 33,344 31,632 30,000 30,000 35,105 -5.2% City Clerk 262,589 261,949 279,670 270,924 274,882 3.4% Contracts & Intergovernmental 371,385 660,222 535,651 559,269 752,474 -15.3% PEG Access 25,671 20,875 23,753 42,450 21,500 103.4% Transfers Out 1,665,303 1,496,763 1,582,285 2,012,830 1,607,035 34.5% Total Expenditures 8,131,563 8,362,153 8,609,857 9,396,000 9,097,115 12.4% BUDGET SUMMARY GENERAL FUND General Fund City of Port Townsend City of Port Townsend 2019 Budget Page 41 of 152 PRELIMINARY 2016 2017 2018 2018 2019 Increase/Decrease Actual Actual Adopted Supplemental Proposed 2019 Proposed vs 2018 Adopted Beginning Fund Balance 150,434 120,836 171,343 171,343 181,831 Revenues Taxes - - - - - Miscellaneous Revenue 402 507 500 1,488 1,200 140.0% Operating Transfers In 20,000 50,000 - 9,000 - Total Revenue 20,402 50,507 500 10,488 1,200 140.0% Expenditures Miscellaneous Transfers Out 50,000 - - - - Total Expenditure 50,000 - - - - Net Change in Fund Balance (29,598) 50,507 500 10,488 1,200 140.0% Ending Fund Balance 120,836 171,343 171,843 181,831 183,031 Fund Balance 2% of GF Rev 1.5%2.1%2.0%2.1%2.1%Meets Policy DRUG ENFORCEMENT / CONTINGENCY FUND BUDGET SUMMARY Contingency Fund City of Port Townsend City of Port Townsend 2019 Budget Page 42 of 152 PRELIMINARY 2016 2017 2018 2018 2019 Increase/Decrease Actual Actual Adopted Supplemental Proposed 2019 Proposed vs 2018 Adopted Beginning Fund Balance 195,691 304,941 380,772 380,772 226,057 Revenues Taxes 605,615 607,528 606,507 622,298 635,010 4.7% Licenses & Permits 1,312 - 500 231 500 0.0% Intergovernmental Services 212,085 215,390 219,735 219,709 222,493 1.3% Charges for Goods & Services 5,000 13,326 10,000 7,500 10,000 0.0% Miscellaneous Revenue 2,188 44,661 1,200 3,146 2,800 133.3% Other Financing Sources 6,500 3,340 8,111 - Operating Transfers In - 0 - - - Total Revenue 832,700 884,245 837,942 860,995 870,803 3.9% Expenditures Salaries & Wages 129,709 128,981 138,473 145,087 156,218 12.8% Personnel Benefits 58,333 62,825 68,271 74,261 79,521 16.5% Supplies 28,902 41,141 52,000 52,000 42,490 -18.3% Professional Services 15,136 4,783 17,000 8,500 21,950 29.1% Communications 598 598 600 600 500 -16.7% Advertising - - - - - Operating Rents & Leases 1,235 - - 165 - Intergovernemental Services - 6,329 - 1,000 - Machinery & Equipment 19,893 - - 3,570 15,000 Other Improvements - 87,469 50,000 142,276 50,000 0.0% Repair & Maintenance 52,849 42,975 60,000 60,000 60,000 0.0% Equipment Rental 50,142 45,718 45,718 91,797 65,585 43.5% Utilities 105,959 116,129 115,000 135,100 135,000 17.4% Training/Memberships & Travel - 1,890 2,500 2,000 2,500 0.0% Overhead Allocation 73,564 85,523 86,646 108,969 119,909 38.4% Miscellaneous 2,177 4,397 4,000 11,511 3,500 -12.5% Transfers Out 184,953 179,656 178,874 178,874 178,400 -0.3% Total Expenditure 723,450 808,415 819,082 1,015,710 930,573 13.6% Net Change in Fund Balance 109,250 75,831 18,860 (154,715) (59,770) -416.9% Ending Fund Balance 304,941 380,772 399,632 226,057 166,287 Fund Bal. 2-3 % of Expenditures 42.2%47.1%48.8%22.3%17.9%Meets Policy STREET FUND BUDGET SUMMARY Street Fund City of Port Townsend City of Port Townsend 2019 Budget Page 43 of 152 PRELIMINARY 2016 2017 2018 2018 2019 Increase/Decrease Actual Actual Adopted Supplemental Proposed 2019 Proposed vs 2018 Adopted Beginning Fund Balance 151,853 205,696 240,915 240,915 197,667 Revenues Taxes 1,021,077 1,039,847 1,076,951 1,076,951 1,095,824 1.8% Licenses & Permits - - - - - Intergovernmental Services 1,394 - - - - Charges for Goods & Services - - - - - Fines & Penalties 9,339 4,325 - 935 - Miscellaneous Revenue 4,586 3,744 650 4,273 1,320 103.1% Other Financing Sources 32,831 1,267 - 2,104 - Operating Transfers In - - - 74 - Total Revenue 1,069,227 1,049,183 1,077,601 1,084,337 1,097,144 1.8% Expenditures Salaries & Wages 416,800 410,243 446,279 446,279 458,773 2.8% Personnel Benefits 167,734 173,105 192,681 192,681 198,422 3.0% Supplies 19,883 10,872 12,000 12,000 12,500 4.2% Professional Services 19,962 21,778 29,200 44,200 27,000 -7.5% Communications 14,429 15,790 14,640 14,640 14,436 -1.4% Advertising 262 - 500 500 500 0.0% Operating Rents & Leases 2,934 1,733 1,560 1,700 1,968 26.2% Intergovernemental Services - - - - - Equipment & Acquisitions 74,814 68,993 76,000 76,060 71,500 -5.9% Repair & Maintenance 19,229 - - - - Equipment Rental 58,979 63,806 63,806 74,412 94,443 48.0% Utilities 21,506 27,921 24,600 31,000 32,016 30.1% Training/Memberships & Travel 3,235 7,880 12,500 12,000 8,500 -32.0% Miscellaneous 10,328 10,592 3,000 5,500 7,200 140.0% Overhead Allocation 185,189 197,968 214,972 214,972 232,915 8.3% Transfers Out 100 3,282 1,641 1,641 1,500 -8.6% Total Expenditure 1,015,384 1,013,963 1,093,379 1,127,585 1,161,673 6.2% Net Change in Fund Balance 53,843 35,219 (15,778) (43,248) (64,529) 309.0% Ending Fund Balance 205,696 240,915 225,137 197,667 133,138 Fund Balance 5-8% of Tax Rev.20.1%23.2%20.9%18.4%12.1%Meets Policy LIBRARY FUND BUDGET SUMMARY Library Fund City of Port Townsend City of Port Townsend 2019 Budget Page 44 of 152 PRELIMINARY 2016 2017 2018 2018 2019 Increase/Decrease Actual Actual Adopted Supplemental Proposed 2019 Proposed vs 2018 Adopted Beginning Fund Balance 68,310 179,940 301,053 301,053 302,686 Revenues Taxes 590,244 725,916 510,000 539,232 510,000 0.0% Miscellaneous Revenue 386 1,196 100 2,401 2,200 2100.0% Other Financing Sources - - - - - Operating Transfers In - - - - - Total Revenue 590,630 727,113 510,100 541,633 512,200 0.4% Expenditures Miscellaneous - - - - - Transfers Out 479,000 606,000 545,000 540,000 510,000 -6.4% Total Expenditure 479,000 606,000 545,000 540,000 510,000 -6.4% Net Change in Fund Balance 111,630 121,113 (34,900) 1,633 2,200 -106.3% Ending Fund Balance 179,940 301,053 266,153 302,686 304,886 Sufficient to Meet Obligations Meets Policy REAL ESTATE EXCISE TAX FUND BUDGET SUMMARY REET City of Port Townsend City of Port Townsend 2019 Budget Page 45 of 152 2016 2017 2018 2018 2019 Increase/Decrease Actual Actual Adopted Supplemental Proposed 2019 Proposed vs 2018 Adopted Beginning Fund Balance 157,097 177,611 252,500 252,500 256,242 Revenues Taxes 474,938 508,503 480,000 550,000 550,000 14.6% Miscellaneous Revenue - - - 1,080 750 Other Financing Sources - - - - - Operating Transfers In - - - - - Total Revenue 474,938 508,503 480,000 551,080 550,750 14.7% Expenditures Professional Services 226,824 267,860 273,500 334,500 293,500 7.3% Advertising 55,171 49,558 45,000 45,000 35,000 -22.2% Machinery & Equipment - - - - - Other Improvements 170 - - - 76,000 Miscellaneous 3,362 6,835 23,500 30,000 33,500 42.6% Overhead Allocation 18,897 9,361 12,838 12,838 9,908 -22.8% Transfers Out - Debt Service 150,000 100,000 125,000 125,000 125,000 0.0% Total Expenditure 454,424 433,614 479,838 547,338 572,908 19.4% Net Change in Fund Balance 20,514 74,889 162 3,742 (22,158) -13777.8% Ending Fund Balance 177,611 252,500 252,662 256,242 234,084 Sufficient to Meet Obligations Meets Policy LODGING TAX FUND BUDGET SUMMARY Lodging Tax City of Port Townsend City of Port Townsend 2019 Budget Page 46 of 152 PRELIMINARY 2016 2017 2018 2018 2019 Increase/Decrease Actual Actual Adopted Supplemental Proposed 2019 Proposed vs 2018 Adopted Beginning Fund Balance 32,713 15,887 2,525 2,525 3,690 Revenues Taxes 2,399,034 2,293,433 2,385,276 2,385,276 2,451,642 2.8% Miscellaneous Revenue 546 632 600 1,165 1,000 66.7% Operating Transfers In - - - - - Total Revenue 2,399,580 2,294,065 2,385,876 2,386,441 2,452,642 2.8% Expenditures Intergovernemental Services 2,411,912 2,307,427 2,385,276 2,385,276 2,451,642 2.8% Miscellaneous - - - - - Transfers Out 4,494 - - - - Total Expenditure 2,416,406 2,307,427 2,385,276 2,385,276 2,451,642 2.8% Net Change in Fund Balance (16,826) (13,362) 600 1,165 1,000 66.7% Ending Fund Balance 15,887 2,525 3,125 3,690 4,690 Sufficient to Meet Obligations Meets Policy FIRE/EMS FUND BUDGET SUMMARY Fire/EMS City of Port Townsend City of Port Townsend 2019 Budget Page 47 of 152 PRELIMINARY 2016 2017 2018 2018 2019 Increase/Decrease Actual Actual Adopted Supplemental Proposed 2019 Proposed vs 2018 Adopted Beginning Fund Balance 40,663 40,780 10,922 10,922 11,030 Revenues Taxes 10,000 10,000 10,000 10,000 10,000 0.0% Miscellaneous Revenue 118 142 - 108 100 Operating Transfers In - - - - - Total Revenue 10,118 10,142 10,000 10,108 10,100 1.0% Expenditures Miscellaneous - 30,000 10,000 10,000 10,000 0.0% Transfers Out 10,000 10,000 - - - Total Expenditure 10,000 40,000 10,000 10,000 10,000 0.0% Net Change in Fund Balance 118 (29,858) - 108 100 -100.4% Ending Fund Balance 40,780 10,922 10,922 11,030 11,130 Sufficient to Meet Obligations Meets Policy AFFORDABLE HOUSING FUND BUDGET SUMMARY Affordable Housing City of Port Townsend City of Port Townsend 2019 Budget Page 48 of 152 PRELIMINARY 2016 2017 2018 2018 2019 Increase/Decrease Actual Actual Adopted Supplemental Proposed 2019 Proposed vs 2018 Adopted Beginning Fund Balance 141,751 148,159 168,421 168,421 172,429 Revenues Intergovernmental Services 16,974 19,619 13,023 42,755 13,424 3.1% Miscellaneous Revenue 559 643 600 1,253 1,000 66.7% Operating Transfers In - - - - - Total Revenue 17,533 20,262 13,623 44,008 14,424 5.9% Expenditures Miscellaneous 11,125 - 15,000 40,000 15,000 0.0% Transfers Out - - - - - Total Expenditure 11,125 - 15,000 40,000 15,000 0.0% Net Change in Fund Balance 6,408 20,262 (1,377) 4,008 (576) -58.2% Ending Fund Balance 148,159 168,421 167,044 172,429 171,853 Sufficient to Meet Obligations Meets Policy COMMUNITY DEVELOPMENT BLOCK GRANTS BUDGET SUMMARY CDBG City of Port Townsend City of Port Townsend 2019 Budget Page 49 of 152 PRELIMINARY 2016 2017 2018 2018 2019 Increase/Decrease Actual Actual Adopted Supplemental Proposed 2019 Proposed vs 2018 Adopted Beginning Fund Balance 105,699 125,939 88,594 88,594 105,801 Revenues Taxes 559,035 706,067 690,648 649,285 722,442 4.6% Charges for Goods & Services 140,575 172,767 208,000 196,761 225,500 8.4% Fines & Penalties - - - - - Miscellaneous Revenue 78,388 84,709 80,800 87,936 83,850 3.8% Other Financing Sources - - - 110,000 Operating Transfers In 925,100 912,711 1,034,000 1,124,000 985,000 -4.7% Total Revenue 1,703,098 1,876,254 2,013,448 2,167,982 2,016,792 0.2% Expenditures Salaries & Wages 576,840 678,420 699,136 729,777 748,547 7.1% Personnel Benefits 284,026 334,090 356,354 357,534 371,639 4.3% Supplies 163,295 255,239 291,040 195,605 180,280 -38.1% Professional Services 52,015 63,253 68,650 70,550 73,600 7.2% Communications 12,456 13,654 15,140 15,740 14,140 -6.6% Advertising 2,280 625 3,135 3,235 3,000 -4.3% Operating Rents & Leases 43,881 43,619 43,138 43,868 44,269 2.6% Intergovernemental Services - - - 500 - Machinery & Equipment 26,088 6,714 7,900 120,474 9,810 24.2% Other Improvements 41,591 (2,426) - - - Repair & Maintenance 90,478 82,257 69,870 107,000 65,120 -6.8% Equipment Rental 54,368 51,838 51,838 83,106 59,511 14.8% Utilities 141,198 147,683 149,000 159,050 155,000 4.0% Training/Memberships & Travel 3,343 15,023 14,560 16,820 15,753 8.2% Miscellaneous 28,204 25,633 17,782 22,500 23,782 33.7% Overhead Allocation 110,188 148,105 225,017 225,017 246,324 9.5% Transfers Out 52,608 49,871 - - - Total Expenditure 1,682,859 1,913,599 2,012,560 2,150,776 2,010,775 -0.1% Net Change in Fund Balance 20,240 (37,345) 888 17,206 6,017 577.6% Ending Fund Balance 125,939 88,594 89,482 105,801 111,818 Fund Bal. 2-3 % of Expenditures 7.5%4.6%4.4%4.9%5.6%Meets Policy Community Services Fund - Expenditures by Department GF Overhead 110,188 148,105 225,017 225,017 246,324 9.5% Arts Commission 19,806 25,359 24,600 24,600 24,600 0.0% City Facilities 400,034 469,166 499,889 632,670 507,781 1.6% Mountain View Facilities 312,675 323,668 344,438 255,168 131,974 -61.7% Parks Maintenance 452,145 474,265 465,544 535,670 484,940 4.2% Pool 338,012 423,035 453,072 477,651 614,156 35.6% Events - - - - 1,000 Transfers Out 50,000 50,000 Total Expenditures 1,682,859 1,913,599 2,012,560 2,150,776 2,010,775 -0.1% City of Port Townsend COMMUNITY SERVICES FUND BUDGET SUMMARY Community Svs City of Port Townsend 2019 Budget Page 50 of 152 PRELIMINARY 2016 2017 2018 2018 2019 Increase/Decrease Actual Actual Adopted Supplemental Adopted 2019 Proposed vs 2018 Adopted Beginning Fund Balance 65,185 71,096 86,746 86,746 87,532 Revenues Taxes 261,207 400,257 406,500 406,500 411,135 1.1% Miscellaneous Revenue 1,007 6,404 800 3,778 3,000 275.0% Bond Proceeds - 3,304,098 - - - Operating Transfers In 1,213,697 1,292,488 1,267,855 1,257,400 1,283,900 1.3% Total Revenue 1,475,911 5,003,247 1,675,155 1,667,678 1,698,035 1.4% Expenditures Debt Service Principal 665,000 890,000 870,000 870,000 895,000 2.9% Debt Service Interest 803,800 688,619 772,656 793,892 788,855 2.1% Professional Services 1,200 1,595 3,000 3,000 3,000 0.0% Bond Issue Costs - 103,285 - - - Transfers Out - 3,304,098 - - - Total Expenditure 1,470,000 4,987,597 1,645,656 1,666,892 1,686,855 2.5% Net Change in Fund Balance 5,911 15,650 29,499 786 11,180 -62.1% Ending Fund Balance 71,096 86,746 116,245 87,532 98,712 Sufficient to Meet Obligations Meets Policy ** In 2017, The City Refinanced its 2018 GO Bonds. Receipts were recoginized in this fund and later transferred to a Capital Projects Fund. GENERAL OBLIGATION DEBT SERVICE BUDGET SUMMARY General Debt Svs ** City of Port Townsend City of Port Townsend 2019 Budget Page 51 of 152 PRELIMINARY 2016 2017 2018 2018 2019 Increase/Decrease Actual Actual Adopted Supplemental Proposed 2019 Proposed vs 2018 Adopted Beginning Fund Balance 1,334,201 1,309,017 3,419,308 3,419,308 875,675 Revenues State & Federal Grants - 13,019 410,000 360,000 45,000 -89.0% Miscellaneous Revenue 129 18,991 74,687 69,367 75,000 0.4% Other Financing Sources - Operating Transfers In 75,403 3,027,177 1,588,841 1,436,841 176,831 -88.9% Total Revenue 75,532 3,059,187 2,073,528 1,866,208 296,831 -85.7% Expenditures G/F Overhead 44,105 61,676 25,841 25,841 29,331 13.5% Intergovernemental Services 9,091 191,247 80,000 80,000 30,000 -62.5% Building Improvements 16,217 258,409 1,935,500 1,771,000 195,000 -89.9% Land Acquisitions - - - - - Other Improvements - - - - - Debt Issue Costs - - - - - Transfers Out 31,303 437,564 3,410,500 2,533,000 872,500 478.9% Total Expenditure 100,716 948,896 5,451,841 4,409,841 1,126,831 -79.3% Net Change in Fund Balance (25,184) 2,110,291 (3,378,313) (2,543,633) (830,000) -75.4% Ending Fund Balance 1,309,017 3,419,308 40,995 875,675 45,675 Sufficient to Meet Obligations Meets Policy General CIP Fund Breakdown: Beginning 2016 Change in 2017 Change in 2018 Change in 2019 Change in 2019 Ending Fund Balance Fund Balance Fund Balance Fund Balance Fund Balance Fund Balance 301 - General Capital 73,929 6,119 (75,048) (29,995) 42,500 17,505 315 - 2015 Bonds 1,260,272 (31,303) (68,157) (1,053,789) (97,500) 9,523 350 - 2017 Bonds - - 2,253,496 (1,459,849) (775,000) 18,647 Total 1,334,201 (25,184) 2,110,291 (2,543,633) (830,000) 45,675 City of Port Townsend GENERAL CAPITAL PROJECTS BUDGET SUMMARY General CIP City of Port Townsend 2019 Budget Page 52 of 152 2016 2017 2018 2018 2019 Increase/Decrease Actual Actual Adopted Supplemental Proposed 2019 Proposed vs 2018 Adopted Beginning Fund Balance (38,382) (116,721) (328,824) (328,824) 205,116 Revenues State & Federal Grants 767,020 2,153,285 1,477,000 1,350,000 880,000 -40.4% Miscellaneous Revenue 60 271 300 270,611 125 -58.3% Other Financing Sources 20,278 19,178 - 640,000 140,000 Operating Transfers In 154,900 863,160 1,921,989 1,191,489 821,704 -57.2% Total Revenue 942,258 3,035,894 3,399,289 3,452,100 1,841,829 -45.8% Expenditures G/F Overhead 29,846 44,284 39,489 39,489 96,704 144.9% Intergovernemental Services 139,828 557,515 328,200 319,300 362,500 10.5% Land Acquisitions 78,942 - 15,000 15,000 - -100.0% Road Improvements 751,981 2,646,198 2,224,300 2,102,371 962,500 -56.7% Sidewalk Improvements - - 840,000 442,000 300,000 -64.3% Debt Issue Costs - - - - 319,287 Miscellaneous - - - - - Transfers Out 20,000 - - - - Total Expenditure 1,020,597 3,247,998 3,446,989 2,918,160 2,040,991 -40.8% Net Change in Fund Balance (78,339) (212,103) (47,700) 533,940 (199,162) 317.5% Ending Fund Balance (116,721) (328,824) (376,524) 205,116 5,954 Sufficient to Meet Obligations -12.4%Meets Policy Street CIP Fund Breakdown: Beginning 2016 Change in 2017 Ending 2018 Change in 2019 Change 2019 Ending Fund Balance Fund Balance Fund Balance Fund Balance Fund Balance Fund Balance 304 - Street Vacation Proceeds 25,269 (19,944) 20 461 25 5,831 305 - Street Capital Fund (63,651) (58,395) (212,123) 533,479 (219,187) (19,877) - - - - - - Total (38,382) (78,339) (212,103) 533,940 (219,162) (14,046) City of Port Townsend STREET CAPITAL PROJECTS BUDGET SUMMARY Street CIP City of Port Townsend 2019 Budget Page 53 of 152 PRELIMINARY 2016 2017 2018 2018 2019 Increase/Decrease Actual Actual Adopted Supplemental Proposed 2019 Proposed vs 2018 Adopted Beginning Fund Balance 1,450,404 1,997,066 1,715,738 1,715,738 922,665 Revenues Charges for Goods & Services 606,037 397,507 311,290 306,718 328,452 5.5% Miscellaneous Revenue 4,483 8,166 4,000 10,209 10,000 150.0% Operating Transfers In - - - - - Total Revenue 610,520 405,672 315,290 316,927 338,452 7.3% Expenditures Miscellaneous - - - - Overhead Allocation - - - - Transfers Out 63,859 687,000 1,080,000 1,110,000 600,000 -44.4% Total Expenditure 63,859 687,000 1,080,000 1,110,000 600,000 -44.4% Net Change in Fund Balance 546,661 (281,328) (764,710) (793,073) (261,548) -65.8% Ending Fund Balance 1,997,066 1,715,738 951,028 922,665 661,117 Sufficient to Meet Obligations Meets Policy SYSTEM DEVELOPMENT CHARGES BUDGET SUMMARY SDCs City of Port Townsend City of Port Townsend 2019 Budget Page 54 of 152 PRELIMINARY 2015 2016 2017 2018 2018 2019 Increase/Decrease Actual Actual Actual Adopted Supplemental Proposed 2019 Proposed vs 2018 Adopted Beginning Fund Balance 1,716,496 2,200,191 3,018,071 3,327,672 3,327,672 2,128,036 Revenues Intergovernmental Services 3,968 1,524 528 Charges for Goods & Services 4,681,557 4,760,833 4,920,688 5,354,110 5,519,407 5,529,875 3.3% Fines & Penalties - - - - - - Miscellaneous Revenue 81,764 72,541 76,831 61,800 88,969 76,700 24.1% Other Financing Sources - - Operating Transfers In 25,000 434,782 676,863 801,047 971,382 1,350,791 68.6% Total Revenue 4,792,289 5,269,680 5,674,911 6,216,957 6,579,758 6,957,366 11.9% Expenditures Overhead Charges 340,596 575,154 690,696 751,374 716,494 790,381 5.2% Salaries & Wages 1,276,418 1,308,523 1,351,620 1,451,757 1,460,600 1,480,076 2.0% Personnel Benefits 591,522 616,796 646,910 723,193 724,260 757,397 4.7% Supplies 233,860 234,663 219,025 276,550 274,650 273,912 -1.0% Debt Principal 327,278 674,551 798,627 924,344 1,036,207 1,289,679 39.5% Debt Interest 19,917 45,155 136,499 88,155 191,791 274,358 211.2% Professional Services 44,887 64,844 142,761 81,896 91,896 391,977 378.6% Communications 38,176 38,045 38,325 41,172 43,364 43,757 6.3% Advertising 50 702 923 880 1,059 880 0.0% Operating Rents & Leases 5,099 10,849 10,850 15,777 15,822 15,657 -0.8% Intergovernmental Services 622,996 325,905 525,748 563,589 591,179 250,991 -55.5% Machinery & Equipment 13,104 92,091 30,792 308,350 345,068 59,000 -80.9% Other Improvements - - 45,723 510,000 260,000 235,000 -53.9% Repair & Maintenance 63,019 63,345 57,040 74,000 79,000 70,300 -5.0% Equipment Rental 255,000 264,040 311,054 311,054 405,777 372,724 19.8% Training/Memberships & Travel 3,497 3,821 13,218 28,525 30,728 37,950 33.0% Miscellaneous 69,894 60,265 141,046 153,668 143,933 134,576 -12.4% Transfers Out 403,280 73,051 204,452 1,557,590 1,367,566 581,379 -62.7% Total Expenditure 4,308,593 4,451,800 5,365,310 7,861,874 7,779,394 7,059,994 -10.2% Net Change in Fund Balance 483,695 817,880 309,601 (1,644,917) (1,199,636) (102,628) -93.8% Ending Fund Balance 2,200,191 3,018,071 3,327,672 1,682,755 2,128,036 2,025,408 60 Days of Operating Expenses 186 247 226 78 100 105 Meets Policy Water/Sewer Operations - Expenditures by Department: Utility Billing 440,700 472,066 505,845 566,610 600,242 583,462 3.0% Water Disribution 1,365,251 1,122,226 1,456,649 2,726,997 2,164,414 1,931,670 -29.2% Water Quality / WTF 608,070 931,802 1,347,075 1,486,728 1,747,074 2,062,819 38.7% Wastewater Treatment 663,355 662,662 731,302 1,297,123 1,565,007 981,583 -24.3% Wastewater Collection 878,827 875,123 911,533 1,158,202 985,039 993,909 -14.2% Biosolids 352,390 387,922 412,906 626,214 717,617 506,551 -19.1% Total Expenditures 4,308,593 4,451,800 5,365,310 7,861,874 7,779,394 7,059,994 -10.2% WATER/SEWER OPERATIONS BUDGET SUMMARY Water Sewer Op City of Port Townsend City of Port Townsend 2019 Budget Page 55 of 152 PRELIMINARY 2015 2016 2017 2018 2018 2019 Increase/Decrease Actual Actual Actual Adopted Supplemental Proposed 2019 Proposed vs 2018 Adopted Beginning Fund Balance - 276,525 1,993,822 1,425,356 1,425,356 2,468,440 Revenues Intergovernmental Services - - 200,000 450,000 200,000 0.0% Charges for Goods & Services 1,186,610 1,194,086 868,600 986,394 1,272,075 46.5% Miscellaneous Revenue 7,638 11,676 678,600 694,544 18,000 -97.3% Other Financing Sources 15,374,054 3,106,577 2,775,982 2,657,477 - -100.0% Operating Transfers In 209,666 1,157,958 2,847,090 2,616,790 1,271,379 -55.3% Total Revenue - 16,777,967 5,470,297 7,370,272 7,405,205 2,761,454 -62.5% Expenditures G/F Overhead 61,441 144,117 278,894 278,894 107,081 -61.6% Interfund Loan Payments 250,000 - - - Debt Service Principal 72,632 72,632 1,772,632 672,632 52,632 -97.0% Debt Service Interest 5,105 34,727 20,842 42,842 42,711 104.9% Intergovernemental Services 703,311 552,663 405,000 449,800 285,000 -29.6% Other Improvements - Water 13,473,906 3,871,963 2,320,000 2,960,750 250,000 -89.2% Other Improvements - Sewer 236,687 190,804 305,000 315,000 485,000 59.0% Miscellaneous 26,321 Transfers Out***- 507,589 921,857 1,445,547 1,615,882 1,328,791 -8.1% Total Expenditure - 15,060,671 6,038,763 6,547,915 6,362,121 2,551,215 -61.0% Net Change in Fund Balance - 1,717,297 (568,466) 822,357 1,043,084 210,239 -74.4% Ending Fund Balance 276,525 1,993,822 1,425,356 2,247,713 2,468,440 2,678,679 Sufficient to Meet Obligations Meets Policy Water / Sewer CIP Fund Breakdown: Beginning 2016 Change in 2017 Change in 2018 Change in 2019 Change in 2019 Ending Fund Balance Fund Balance Fund Balance Fund Balance Fund Balance Fund Balance 415 - Water / Sewer CIP (1,960,647) 1,362,029 (764,521) 1,426,127 (40,000) 22,988 417 - 1956 Trans Line Fund 1,259,860 (77,038) (27,846) (436,393) (3,045) 715,538 419 - 1978 Revenue Bond Fund - - - - - - 430 - Utility Debt Reserve Fund 977,313 432,306 223,901 53,350 253,284 1,940,154 Total 276,525 1,717,297 (568,466) 1,043,084 210,239 2,678,679 ** This Fund Summary includes Water / Sewer Capital, Transmission Line Fund, 1978 Revenue Bond Fund & Water/Sewer Debt Service Fund *** Operating Transfers include funding Water Capital Debt Service in the Water / Sewer Operating Fund WATER/SEWER CAPITAL BUDGET SUMMARY Water Sewer CIP ** City of Port Townsend City of Port Townsend 2019 Budget Page 56 of 152 PRELIMINARY Storm Water 2016 2017 2018 2018 2019 Increase/Decrease Operating Fund Actual Actual Adopted Supplemental Proposed S Beginning Fund Balance 134,604 76,245 175,137 175,137 140,375 Revenues Intergovernmental Services - - - - Charges for Goods & Services 560,708 565,801 737,418 742,623 746,659 1.3% Miscellaneous Revenue 409 510 600 1,189 1,200 100.0% Operating Transfers In - - - - - Total Revenue 561,116 566,311 738,018 743,812 747,859 1.3% Expenditures G/F OH Charges 70,326 87,859 106,412 100,304 106,236 -0.2% Salaries & Wages 201,369 201,950 219,575 219,575 224,715 2.3% Personnel Benefits 94,749 101,948 112,753 111,888 117,047 3.8% Supplies 1,932 495 7,000 9,000 7,000 0.0% Debt Principal - - - - 6,700 Debt Interest - - - - 11,500 Professional Services - 912 16,000 23,480 14,141 -11.6% Communications - - - - - Advertising - - - - - Operating Rents & Leases - - - - - Intergovernmental 61,894 12,584 12,525 12,525 - -100.0% Machinery & Equipment - - - - 12,000 Other Improvements 119,785 - 15,000 - - -100.0% Repair & Maintenance 2,402 8,019 4,000 4,000 4,000 0.0% Equipment Rental 66,374 49,742 49,742 95,222 115,755 132.7% Training/Memberships & Travel - - 1,400 1,400 1,000 -28.6% Miscellaneous 593 706 730 1,180 980 34.2% Transfers Out 51 3,204 220,000 200,000 160,000 -27.3% Total Expenditure 619,476 467,419 765,137 778,574 781,074 2.1% - Net Change in Fund Balance (58,359) 98,892 (27,119) (34,762) (33,215) 22.5% Ending Fund Balance 76,245 175,137 148,018 140,375 107,160 60 Days of Operating Expenses 45 137 71 66 50 Does not meet policy City of Port Townsend STORM WATER OPERATIONS BUDGET SUMMARY City of Port Townsend 2019 Budget Page 57 of 152 PRELIMINARY 2016 2017 2018 2018 2019 Increase/Decrease Actual Actual Adopted Supplemental Proposed 2019 Proposed vs 2018 Adopted Beginning Fund Balance - 126,627 (28,016) (28,016) (16) Revenues Intergovernmental Services - - - - - Charges for Goods & Services 126,501 156,714 - - - Miscellaneous Revenue 126 429 600 - - -100.0% Other Financing Sources - - 850,000 428,000 830,000 -2.4% Operating Transfers In - - 220,000 200,000 160,000 -27.3% Total Revenue 126,627 157,143 1,070,600 628,000 990,000 -7.5% Expenditures Intergovernemental Services - 130,288 115,000 130,000 165,000 43.5% Other Improvements - Storm - 181,498 1,105,000 470,000 803,000 -27.3% Other Improvements - -- - - Miscellaneous - -- - - Transfers Out - -- - - Total Expenditure - 311,786 1,220,000 600,000 968,000 -20.7% Net Change in Fund Balance 126,627 (154,643) (149,400) 28,000 22,000 -114.7% Ending Fund Balance 126,627 (28,016) (177,416) (16) 21,984 Sufficient to Meet Obligations Meets Policy City of Port Townsend STORM WATER CAPITAL FUND BUDGET SUMMARY Storm Water CIP City of Port Townsend 2019 Budget Page 58 of 152 PRELIMINARY 2016 2017 2018 2018 2019 Increase/Decrease Actual Actual Adopted Supplemental Proposed 2019 Proposed vs 2018 Adopted Beginning Fund Balance 37,487 40,295 26,226 26,226 25,851 Revenues Charges for Goods & Services 356,510 490,119 584,273 553,053 611,602 4.7% Fines & Penalties - - - - - Miscellaneous Revenue 118 290 300 7,717 200 -33.3% Operating Transfers In - 76 - - - Total Revenue 356,628 490,486 584,573 560,770 611,802 4.7% Expenditures Salaries & Wages 187,731 275,377 317,199 302,621 348,160 9.8% Personnel Benefits 71,473 110,308 121,243 108,970 143,848 18.6% Supplies 2,553 2,186 4,000 2,500 4,000 0.0% Professional Services 12,717 20,602 6,000 12,000 10,000 66.7% Communications 1,961 2,385 2,000 2,000 2,000 0.0% Advertising - - 1,000 500 1,000 0.0% Operating Rents & Leases 3,281 2,672 3,600 3,600 3,600 0.0% Intergovernemental Services - - - - - Machinery & Equipment - - 1,000 1,000 1,500 50.0% Repair & Maintenance - - 500 500 500 0.0% Equipment Rental 11,330 23,770 23,770 28,822 17,617 -25.9% Training/Memberships & Travel 746 10,534 8,000 4,800 8,000 0.0% Miscellaneous 1,429 779 2,550 1,750 1,500 -41.2% Overhead Allocation 60,599 55,942 58,810 58,810 52,547 -10.6% Transfers Out - - 34,600 33,272 - -100.0% Total Expenditure 353,820 504,554 584,272 561,145 594,272 1.7% Net Change in Fund Balance 2,808 (14,069) 301 (375) 17,530 5723.9% Ending Fund Balance 40,295 26,226 26,527 25,851 43,381 Sufficient to Meet Obligations Meets Policy PUBLIC WORKS ADMINISTRATION BUDGET SUMMARY PW Admin (Internal Service Fund) City of Port Townsend City of Port Townsend 2019 Budget Page 59 of 152 2016 2017 2018 2018 2019 **Increase/Decrease Actual Actual Adopted Supplemental Proposed 2019 Proposed vs 2018 Adopted Beginning Fund Balance 829,341 790,921 790,921 714,117 1,433,843 Revenues Charges for Goods & Services 785,846 865,318 865,316 1,270,799 1,146,957 32.5% Miscellaneous Revenue 18,161 11,822 10,475 9,819 2,000 -80.9% Operating Transfers In 190,000 39 494,600 883,172 - -100.0% Total Revenue 994,007 877,179 1,370,391 2,163,790 1,148,957 -16.2% Expenditures Salaries & Wages 276,677 300,838 301,528 294,546 302,847 0.4% Personnel Benefits 126,457 140,651 147,937 141,832 142,261 -3.8% Supplies 129,392 142,221 163,500 163,700 164,500 0.6% Professional Services 1,862 2,357 1,200 1,200 4,650 287.5% Communications 18,609 17,857 22,760 22,760 20,380 -10.5% Operating Rents & Leases 57 188 500 500 500 0.0% Intergovernemental Services - Machinery & Equipment 337,891 177,554 629,988 626,233 102,853 -83.7% Repair & Maintenance 21,305 34,669 32,000 32,000 32,000 0.0% Equipment Rental 1,886 2,997 2,997 10,803 8,901 197.0% Utilities 10,845 12,771 13,000 13,000 13,900 6.9% Training/Memberships & Travel 525 5,025 6,900 6,700 8,400 21.7% Miscellaneous 7,872 5,649 5,000 5,000 4,500 -10.0% Overhead Allocation 99,050 111,206 138,345 125,790 136,618 -1.2% Transfers Out - - - - - 0.0% Total Expenditure 1,032,427 953,983 1,465,655 1,444,064 942,310 -35.7% Net Change in Fund Balance (38,420) (76,804) (95,264) 719,726 206,647 -1037.1% Ending Fund Balance 790,921 714,117 695,657 1,433,843 1,640,490 Sufficient to Meet Obligations Meets Policy ** The Equipment Rental & Replacement Fund as a whole will be re-established in 2019. Total Revenue & Expenditures in 2019 will be split to separate funds. EQUIPMENT RENTAL & REPLACEMENT FUND BUDGET SUMMARY ERR (Internal Service Fund) City of Port Townsend City of Port Townsend 2019 Budget Page 60 of 152 PRELIMINARY 2016 2017 2018 2018 2019 Increase/Decrease Actual Actual Adopted Supplemental Proposed 2019 Proposed vs 2018 Adopted Beginning Fund Balance 112,074 175,382 175,382 210,781 185,650 Revenues Charges for Goods & Services 999,810 1,003,706 1,009,000 1,039,100 892,500 -11.5% Miscellaneous Revenue 338 847 500 1,634 1,500 200.0% Operating Transfers In - 157 - - - Total Revenue 1,000,147 1,004,710 1,009,500 1,040,734 894,000 -11.4% Expenditures Salaries & Wages 557,735 572,227 589,749 590,500 517,716 -12.2% Personnel Benefits 253,575 260,639 264,541 264,753 239,452 -9.5% Supplies 5,847 5,859 7,500 7,500 7,500 0.0% Professional Services 108 875 10,000 10,000 10,000 0.0% Communications 8,210 8,619 8,700 8,700 8,700 0.0% Advertising - 115 600 600 600 0.0% Operating Rents & Leases - - - - - Intergovernemental Services - Machinery & Equipment 18,695 18,652 30,100 30,100 40,100 33.2% Repair & Maintenance - - 1,000 1,000 1,000 0.0% Equipment Rental 11,408 12,463 12,463 34,801 30,420 144.1% Training/Memberships & Travel 2,855 5,150 19,600 19,600 19,600 0.0% Miscellaneous 12,791 1,537 14,100 14,100 2,000 -85.8% Overhead Allocation 65,615 83,175 84,211 84,211 105,222 25.0% Transfers Out - - - - - Total Expenditure 936,840 969,311 1,042,564 1,065,865 982,310 -5.8% Net Change in Fund Balance 63,307 35,400 (33,064) (25,131) (88,310) 167.1% Ending Fund Balance 175,382 210,781 142,318 185,650 97,340 Sufficient to Meet Obligations Meets Policy ENGINEERING FUND BUDGET SUMMARY Engineering Internal Service Fund City of Port Townsend City of Port Townsend 2019 Budget Page 61 of 152 PRELIMINARY 2016 2017 2018 2018 2019 Increase/Decrease Actual Actual Adopted Supplemental Proposed 2019 Proposed vs 2018 Adopted Beginning Fund Balance 24,666 24,732 24,732 24,832 25,014 Revenues Miscellaneous Revenue 66 100 120 182 180 50.0% Other Financing Sources - Operating Transfers In 3,007 30,637 19,500 44,491 20,000 2.6% Total Revenue 3,073 30,737 19,620 44,673 20,180 2.9% Expenditures Personnel Benefits 3,007 30,637 19,500 44,491 20,000 2.6% Miscellaneous Transfers Out - - - - - Total Expenditure 3,007 30,637 19,500 44,491 20,000 2.6% Net Change in Fund Balance 66 100 120 182 180 50.0% Ending Fund Balance 24,732 24,832 24,852 25,014 25,194 Sufficient to Meet Obligations Meets Policy UNEMPLOYMENT RESERVE FUND BUDGET SUMMARY Unemployment Internal Service Fund City of Port Townsend City of Port Townsend 2019 Budget Page 62 of 152 PRELIMINARY LEOFF 1 2016 2017 2018 2018 2019 Increase/Decrease Fiduciary Fund Actual Actual Adopted Supplemental Proposed 2019 Proposed vs 2018 Adopted Beginning Fund Balance 214,836 226,297 226,297 231,925 240,948 Revenues Taxes 39,245 35,245 34,235 34,235 34,235 0.0% Miscellaneous Revenue 632 943 500 1,928 1,500 200.0% Other Financing Sources Operating Transfers In - - - - Total Revenue 39,877 36,188 34,735 36,163 35,735 2.9% Expenditures Salaries & Wages 14,845 11,803 10,726 10,726 5,699 -46.9% Personnel Benefits 10,638 16,669 15,000 15,000 10,000 -33.3% Overhead Allocation 2,932 2,087 1,414 1,414 1,852 31.0% Transfers Out - - - - Total Expenditure 28,416 30,559 27,140 27,140 17,551 -35.3% Net Change in Fund Balance 11,461 5,628 7,595 9,023 18,184 139.4% Ending Fund Balance 226,297 231,925 233,892 240,948 259,132 Sufficient to Meet Obligations Meets Policy FIREMEN'S PENSION FUND BUDGET SUMMARY City of Port Townsend City of Port Townsend 2019 Budget Page 63 of 152 PRELIMINARY Golf Course 2016 2017 2018 2018 2019 Increase/Decrease Fiduciary Fund Actual Actual Adopted Supplemental Proposed 2019 Proposed vs 2018 Adopted Beginning Fund Balance 31,624 37,297 42,296 42,296 12,144 Revenues Miscellaneous Revenue 10,564 9,883 12,000 10,000 10,000 -16.7% Other Financing Sources - - - 267 250 Operating Transfers In - - - - Total Revenue 10,564 9,883 12,000 10,267 10,250 -14.6% Expenditures G/F OH Alloc 3,272 2,698 5,419 5,419 7,229 33.4% Supplies 1,453 2,186 6,000 6,000 6,000 0.0% Repair & Maintenance 167 5,000 5,000 5,000 0.0% Other Improvements - 5,000 -100.0% Miscellaneous - - - 24,000 Transfers Out - - - - Total Expenditure 4,891 4,884 21,419 40,419 18,229 -14.9% Net Change in Fund Balance 5,673 4,999 (9,419) (30,152) (7,979) -15.3% Ending Fund Balance 37,297 42,296 32,877 12,144 4,165 Sufficient to Meet Obligations Meets Policy GOLF COURSE FUND BUDGET SUMMARY City of Port Townsend City of Port Townsend 2019 Budget Page 64 of 152 CITY OF PORT TOWNSEND, WASHINGTON CAPITAL IMPROVEMENT PLAN The six-year Capital Improvement Plan (CIP) includes capital projects for 2019 – 2023. This plan includes capital projects that add new infrastructure to the City and those that replace and improve aging City infrastructure. The most significant planned capital projects included in this plan are: Mountain View Phase III In 2015 the City voters approved a $3.6 million bond for improvements to the Mountain View Campus. The first phase of the project – Energy Efficiency and Emergency Repairs - was completed in 2015 at a cost of $2.2 million. This work included upgrades to the heating and ventilating systems; replacement of the old diesel fuel boilers with new, high efficiency propane boilers; new energy efficient lighting; and new roofing and roof insulation for the classroom building. The final phase of construction work – improvements to the interior and exterior of the Mountain View Commons – commenced in 2018 and will be completed by early 2019. The work includes improved ADA access to the classroom building and the pool and gym building; fire alarm and emergency lighting system replacement; improvements to the Food Bank and Working Image leased spaces; new locker room and bathroom for the Police Department; hallway upgrades and painting; paving of the police entrance; and painting the building exterior. This final phase will use the remainder of the 2015 Mountain Bond funds as well as an additional $414,000 Community Development Block Grant (CDBG) received for the Food Bank and Working Image. Library Improvements The Library was programmed in 2017 for roof and window replacements on the Annex building, replacement of the exterior retaining wall in front of the Pink house, as well as other miscellaneous repairs to the walkway and stairs at the Lawrence Street Library entrance. The roof and exterior wall replacement will occur in 2018, with work on the windows in 2019. The project is funded by the 2017 capital projects bond as well as Library Foundation donations for the wall repair. Library Restroom Upgrade The Library Foundation is funding a restroom renovation to install new finishes, fixtures and partitions that will improve ADA accessibility and match the aesthetics of the historic Carnegie Library. Jefferson Street Sidewalk The City was awarded a Transportation Improvement Board (TIB) grant to install a sidewalk on Jefferson Street from Taylor Street to Washington Street, to fill in a missing link that will connect an accessible route from downtown to uptown. The project will City of Port Townsend 2019 Budget Page 65 of 152 provide an alternative to the Haller fountain stairs and the “buggy trail.” Construction will start in November of 2018, wrapping up in early 2019. Visitor Center – Sims Way Frontage Improvements This project adds sidewalks, stormwater management, parking and streetscape enhancements as well as the placement of public art on Sims Way in front of the visitor center and the Thayer Street intersection. The project is funded by the 2017 Bond. Design begins in the fall of 2018; construction will be underway in the late spring of 2019. SR 20 Pedestrian Walkway – Logan to Hancock This capital budget item is for the permitting and preliminary design of a pedestrian sidewalk and crossing of the ravine to connect existing sidewalks on each side of the ravine. The design is funded by a federal grant with a City match funded by the 2017 bond. Funding for the construction is not yet determined; once the preliminary design is complete and project costs better known, the City will seek grant funding for construction. Complete Streets The City received $250,000 in grant funding from TIB for improvements to ADA ramps and sidewalks. These small projects will be completed in 2019. 7th Street This project is for the concept design of 7th Street which is a connector street from Rainier Street to Discovery Road. The 2017 bond funded the design, though, currently there is no funding for construction. The concept design will be used for seeking grants and loans and to coordinate improvements by the adjacent commercial properties. Discovery Road Improvements – Rainier to Sheridan This project proposes to reconstruct Discovery Road to include new pavement, curbs, planter strips, separated bicycle lanes, six-foot sidewalks, curb ramps, crosswalks, drainage, pedestrian and street lighting and intersection improvements. However, the City approach to funding the Discovery Road Improvements is to break the project into phases. The first phase of the project is the planning and design of a sidewalk, cycle track, stormwater improvements, crossing improvements and street and pedestrian lighting, which is funded with by a Federal Surface transportation Program (STP) grant and City matching funds. Grant applications through the state have also been submitted for this phase (sidewalk and cycle track) for both design and construction. The City is awaiting the state grant application award announcement which will be late in 2018. City of Port Townsend 2019 Budget Page 66 of 152 Outfall Replacement Replacement of the existing sewer outfall will be a requirement of the City’s Department of Ecology wastewater discharge permit in 2020. A preliminary design has been completed. The initial discussion with the permitting agencies began in 2018 , with permitting and final design in 2019 and construction anticipated in 2020. The permitting and predesign are funded by a Department of Ecology grant and loan. Funding for final design and construction is unsecured, however, the City applied for a loan through the Department of Ecology and is awaiting the outcome of the loan application submission. Gaines Street Pump Station Corrosion Control This station pumps wastewater from the downtown to the City’s Wastewater Treatment Plant. This project will repair the deteriorated concrete caused from the natural corrosive elements of wastewater and place a protective seal coat on the walls to prevent future corrosion. Visitor Center Restrooms This project will install new public restrooms at the Visitor Center. CERB Rainier (formerly Howard Street) Street and Regional Stormwater projects The CERB funding provides for a portion of the stormwater facilities on the Howard Street Extension project, as well as, funding of a regional stormwater pond and conveyance system for the runoff from the properties adjacent to Rainier Street from Discovery Road, south to Sims Way and properties south of Sims Way. The new system will allow denser development to occur in the commercial district while providing necessary stormwater detention. Total CERB loan funding is $1,200,000, of which a portion already funded a the stormwater conveyance system installed during the Howard Street Extension project. The remaining funds will be used for the design, property acquisition and construction of the regional facility which is planned to be completed in 2019. Logan Street Storm Pond This project is to repair the stormwater pond overflow to prevent further slope erosion. 2018 Completed Projects: Big Quilcene Diversion This project was an important repair for the reliability of the water system. It involved repair of an existing 1928 timber crib water diversion structure on the Big Quilcene River. Field investigation work and preliminary design were undertaken in 2016. Construction was completed in 2018. City of Port Townsend 2019 Budget Page 67 of 152 Water Street Improvement Project This project involved pavement replacement and streetscape improvements on Water Street from Taylor Street to the Ferry terminal. The pavement upgrade was funded through a State Transportation Improvement Board (TIB) grant for $690,000. The sidewalk replacement and streetscape improvements were funded by the 2017 Bond. The project was completed in 2018 and included water, sewer and stormwater upgrades funded by those respective utilities. Water Street Overlay - Water Line Replacement This project replaced the existing water line in Water Street as part of the streetscape and pavement overlay. This water line was constructed in 2018 and was funded with System Development Charge (SDC) reserves. Water Street Sewer Sewer and side sewer replacements were part of the Water Street Improvement Project completed in 2018. Other Projects Other projects that have been identified in the Capital Improvement Plan that need to be addressed over a six-year period include: • Discovery Road - Sheridan to Rainier $ 8,300,000 • Sims Way Improvements $ 5,750,000 • South West Sewer Pump Station $ 4,330,000 • Washington Street Improvements $ 2,350,000 • Localized Stromwater Improvements $ 2,086,700 • Outfall Replacement $ 800,000 • 1MG -Re-Coat $ 750,000 • Cliff Street Sewer $ 425,000 • Infiltration/Inflow Removal $ 260,000 • 7th & Holcomb Sewer $ 250,000 • Wastewater Master Plan $ 130,000 • Coordination with the PUD on pathways $no estimate The projects listed above that are included in the 6-year Capital Improvement Plan are still in the initial review stage. As design and construction details are developed, costs will be updated and these projects will be prioritized based on the greatest need and available funding. The majority of these projects do not have a funding source at this time but have been identified as City priorities. City of Port Townsend 2019 Budget Page 68 of 152 Ordinance 3211 Page 1 of2 ORDINANCE NO. 3211 AN ORDINANCE OF THE CITY OF PORT TOWNSEND, WASHINGTON, ADOPTING THE CAPITAL IMPROVEMENT PLAN FOR 2019 THROUGH 2024 WHEREAS, the City of Port Townsend has adopted a Comprehensive Plan and has amended it in accordance with the requirements of the Growth Management Act ("GMA") Chapter 36.70A of the Revised Code of Washington); and, WHEREAS, the GMA requires a capital facilities plan as a mandatory element of the City's Comprehensive Plan and the City has adopted such a plan, commonly referred to as the City's Capital Improvement Plan; and, WHEREAS, the Capital Improvement Plan provides the six-year capital facility program for the City, subject to appropriation by the Council of funding for the projects contained in the Plan; and, WHEREAS, RCW 36.70A.130 and Section 20.04.030A(7) of the Port Townsend Municipal Code allow the city to adopt changes to the Capital Improvement Plan concurrently with the adoption of the city's budget; and, WHEREAS, the City Council held a public hearing on November 5, 2018, on the proposed 2019-2024 Capital Improvement Plan. NOW THEREFORE, the City Council of the City of Port Townsend do ordain as follows: Section 1. Findings and Conclusions, The proposed 2019-2024 Capital Improvement Plan is consistent with and implements the currently -adopted Capital Facilities and Utility Elements of the Comprehensive Plan are consistent with RCW 36.70A.070(3) and the Comprehensive Plan, and are in the public interest. Section ...:. The City adopts the 2019-2024 Capital Improvement Plan as substantially shown at Exhibit A. Sectionµ 3. Severability. If any sentence, clause or phrase of this Ordinance should be held to be invalid or unconstitutional by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of any other section, sentence, clause, or phrase or work of this ordinance. Section. 4. °1`ransmittalto_grLInent of Commerce. The City Clerk shall transmit a copy of this Ordinance to the State Department of Commerce (DOC) within ten (10) days of adoption of this ordinance. City of Port Townsend 2019 Budget Page 69 of 152 Ordinance 3211 Page 2 of2 Section 5. Effective Date. This Ordinance shall take effect and be in force 5 days following its publication in the manner provided by law. ADOPTED by the City Council ofthe City of Port Townsend, Washington, at a special meeting thereof, held thisl3th day of November 2018. Deborah S. Stip son Mayor Attest: Joanna Sanders, MMC City Clerk Approved as to Form: tIrec mcid City Attorney City of Port Townsend 2019 Budget Page 70 of 152 Capital Improvement Plan 2019 - 2024 General Government * This plan shows the 6-year plan for capital projects. 2019 2019 2019 2020 2021 2022 2023 2024 6-Year Total Project Preliminary Supplemental 1 Revised 0095 Mountain View Phase III Voted Bond Funding Sources Voted Bond 97,500 97,500 - Total 97,500 - - - - - 97,500 Expenditures Design/Construction 80,000 80,000 Project Management 20,000 20,000 - Total 100,000 - - - - - 100,000 0096 Mountain View CDBG Funding Sources CDBG 45,000 45,000 - Total 45,000 - - - - - - - 45,000 Expenditures Design/Construction - Project Management - Total - - - - - - - 0102 Library Funding Sources 2017 Bond 50,000 50,000 Donation - - Total 50,000 - - - - - 50,000 Expenditures Design/Construction 40,000 - 40,000 Project Management 10,000 10,000 - Total 50,000 - - - - - 50,000 City of Port Townsend 2019 Budget Page 71 of 152 Capital Improvement Plan 2019 - 2024 General Government * This plan shows the 6-year plan for capital projects. 2019 2019 2019 2020 2021 2022 2023 2024 6-Year Total Project Preliminary Supplemental 1 Revised 0104 Library Restrooms Funding Sources Donations 75,000 75,000 - Total 75,000 - - - - 75,000 Expenditures Design/Construction 75,000 75,000 - - Total 75,000 - - - - 75,000 City of Port Townsend 2019 Budget Page 72 of 152 Capital Improvement Plan 2019 - 2024 Street * This plan shows the 6-year plan for capital projects. 2019 2019 2019 2020 2021 2022 2023 2024 6-Year Total Project Preliminary Supplemental 1 Revised 1058 Howard St Funding Sources WSDOT - TIB - CERB 300,000 300,000 - Total 300,000 - - - - - - - 300,000 Expenditures Line of Credit (LOC)300,000 300,000 Interest on LOC 9,040 9,040 Project Management - Total 309,040 - - - - - - - 309,040 1106 Water St Overlay - Taylor to Ferry Terminal Funding Sources TIB - 2017 Bond - - Total - - - - - - - Expenditures Interest on LOC 10,247 10,247 Construction - Project Management - Total 10,247 - - - - - - - 10,247 1067 Jefferson St Funding Sources 2017 Bond 50,000 50,000 TIB 50,000 50,000 - Total 100,000 - - - - - - - 100,000 Expenditures Design - Construction 60,000 60,000 Project Management 40,000 40,000 Total 100,000 - - - - - - - 100,000 City of Port Townsend 2019 Budget Page 73 of 152 Capital Improvement Plan 2019 - 2024 Street * This plan shows the 6-year plan for capital projects. 2019 2019 2019 2020 2021 2022 2023 2024 6-Year Total Project Preliminary Supplemental 1 Revised 1008 Visitor Center Sims Way Frontage Funding Sources LTAC - 2017 Bond 650,000 650,000 - Total 650,000 - - - - - - - 650,000 Expenditures Design - Construction 509,500 509,500 Project Management 150,000 150,000 Total 659,500 - - - - - - - 659,500 1145 SR 20 Pedestrian Walkway - Logan to Hancock Funding Sources 2017 Bond 20,000 20,000 TAP 95,000 95,000 Unsecured Funds 640,000 640,000 Total 115,000 - - - 640,000 - - - 755,000 Expenditures Design 50,000 50,000 Construction 600,000 600,000 Project Management 30,000 60,000 90,000 Total 80,000 - - - 660,000 - - - 740,000 1009 Complete Sts (TIB) Funding Sources Note: $250,000 Grant Funds received in 2017 TIB - Line of Credit 40,000 40,000 Total 40,000 - - - - - - - 40,000 Expenditures Design 10,000 10,000 Construction 230,000 230,000 Project Management 37,500 37,500 Total 277,500 - - 277,500 City of Port Townsend 2019 Budget Page 74 of 152 Capital Improvement Plan 2019 - 2024 Street * This plan shows the 6-year plan for capital projects. 2019 2019 2019 2020 2021 2022 2023 2024 6-Year Total Project Preliminary Supplemental 1 Revised 1047 7th St Preliminary Design Rainier to Discovery Rd Funding Sources - 2017 Bond 5,000 5,000 Unsecured Funds 800,000 800,000 Total 5,000 - - 800,000 - - 805,000 Expenditures Design - Construction 700,000 700,000 Project Management 5,000 100,000 105,000 Total 5,000 - - 800,000 - - 805,000 1207 Discovery Road Design Sheridan to Rainier Funding Sources WSDOT - STP Funds 435,000 435,000 Line of Credit 80,000 80,000 Unsecured Funds 1,300,000 7,000,000 8,300,000 Total 515,000 - 1,300,000 - - 7,000,000 - 8,815,000 Expenditures Design 403,000 403,000 Construction 1,150,000 6,400,000 7,550,000 Project Management 100,000 150,000 600,000 850,000 Total 503,000 - 1,300,000 - - 7,000,000 - 8,803,000 Washington St Downtown Streetscape Funding Sources - - Unsecured Funds 350,000 2,000,000 2,350,000 Total - - - - - 350,000 2,000,000 2,350,000 Expenditures - Design 350,000 350,000 Construction 2,000,000 2,000,000 Total - - - - - 350,000 2,000,000 2,350,000 City of Port Townsend 2019 Budget Page 75 of 152 Capital Improvement Plan 2019 - 2024 Street * This plan shows the 6-year plan for capital projects. 2019 2019 2019 2020 2021 2022 2023 2024 6-Year Total Project Preliminary Supplemental 1 Revised Sims Way Improvements II Funding Sources - WSDOT - Unsecured 600,000 4,000,000 4,600,000 Unsecured Funds 150,000 1,000,000 1,150,000 Total - - - - 750,000 5,000,000 - 5,750,000 Expenditures - Design 750,000 750,000 Construction 5,000,000 5,000,000 Total - - - - 750,000 5,000,000 - 5,750,000 Sidewalk Project - ADA Funding Sources Unsecured Funds 50,000 50,000 50,000 50,000 50,000 250,000 - - Total - - 50,000 50,000 50,000 50,000 50,000 250,000 Expenditures - Construction 50,000 50,000 50,000 50,000 50,000 250,000 Project Management - Total - - 50,000 50,000 50,000 50,000 50,000 250,000 City of Port Townsend 2019 Budget Page 76 of 152 Capital Improvement Plan 2019 - 2024 Water * This plan shows the 6-year plan for capital projects. 2019 2019 2019 2020 2021 2022 2023 2024 6-Year Total Project Preliminary Supplemental 1 Revised 6041 Big Quil Diversion Funding Sources OGWS - Port Townsend Paper Company - - Total - - - - - - - - - Expenditures Interest on LOC 23,000 23,000 Design/Construction - Project Management - Total 23,000 - - - - - - 23,000 6161 LT2 Note: for expenditures in 2017 Funding Sources PWTF - DWSRF - Total - - - - - - - Expenditures Interest on LOC 18,000 18,000 Design/Construction - Project Management - Total 18,000 - - - - - - - 18,000 6000 Water General Funding Sources Operating Transfer 250,000 200,000 200,000 200,000 200,000 200,000 1,250,000 SDC 50,000 50,000 Total 300,000 - - 200,000 200,000 200,000 200,000 200,000 1,300,000 Expenditures - Design/Construction 250,000 200,000 200,000 200,000 200,000 200,000 1,250,000 Project Management 50,000 50,000 Total 300,000 - - 200,000 200,000 200,000 200,000 200,000 1,300,000 City of Port Townsend 2019 Budget Page 77 of 152 Capital Improvement Plan 2019 - 2024 Water * This plan shows the 6-year plan for capital projects. 2019 2019 2019 2020 2021 2022 2023 2024 6-Year Total Project Preliminary Supplemental 1 Revised 1MG - Re-Coat Funding Sources - Unsecured Funds 750,000 750,000 - Total - - - 750,000 - - - - 750,000 Expenditures - Design/Construction 720,000 720,000 Project Management 30,000 30,000 Total - - - 750,000 - - - - 750,000 City of Port Townsend 2019 Budget Page 78 of 152 Capital Improvement Plan 2019 - 2024 Sewer * This plan shows the 6-year plan for capital projects. 2019 2019 2019 2020 2021 2022 2023 2024 6-Year Total Project Preliminary Supplemental 1 Revised 7001 Collection System Improvements Funding Sources Operating Transfer 22,900 22,900 Sewer Capital Surcharge 17,100 160,000 160,000 160,000 160,000 160,000 817,100 Total 40,000 - - 160,000 160,000 160,000 160,000 160,000 840,000 Expenditures Design/Construction 160,000 160,000 160,000 160,000 160,000 800,000 Project Management 40,000 40,000 Total 40,000 - - 160,000 160,000 160,000 160,000 160,000 840,000 7013 Outfall Replacement Infrastructure Condition Funding Sources CCWF Loan/Grant 200,000 200,000 SDC 100,000 37,500 137,500 Unsecured Funds 4,400,000 4,400,000 Total 300,000 - - 4,437,500 - - - - 4,737,500 Expenditures Design/Construction 225,000 4,080,000 4,305,000 Project Management 75,000 350,000 425,000 - Total 300,000 - - 4,430,000 - - - - 4,730,000 7026 Gaines Street Pump Station " Shoreline Stabilization - Not Currently Funded Infrastructure Condition Mandate (Vulnerability) Funding Sources Sewer Capital Surcharge 130,000 130,000 SDC 100,000 Unsecured Funds 400,000 400,000 Total 230,000 - - - - - 400,000 - 630,000 Expenditures Design/Construction 200,000 350,000 550,000 Project Management 30,000 50,000 80,000 - Total 230,000 - - - - - 400,000 - 630,000 City of Port Townsend 2019 Budget Page 79 of 152 Capital Improvement Plan 2019 - 2024 Sewer * This plan shows the 6-year plan for capital projects. 2019 2019 2019 2020 2021 2022 2023 2024 6-Year Total Project Preliminary Supplemental 1 Revised 7104 7th & Holcomb Sewer Funding Sources SDC 50,000 50,000 Unsecured Funds 250,000 250,000 Total 50,000 - - 250,000 - - - - 300,000 Expenditures Design/Construction 200,000 200,000 Project Management 50,000 50,000 100,000 - Total 50,000 - - 250,000 - - - - 300,000 Visitor Center Restrooms Funding Sources LTAC 100,000 100,000 Unsecured Funds 220,000 220,000 Total 100,000 - - 220,000 - - - - 320,000 Expenditures Design/Construction 60,000 200,000 260,000 Project Management 40,000 20,000 60,000 - Total 100,000 - - 220,000 - - - - 320,000 South West Sewer Pump Station Contributes to Economic Development Funding Sources Unsecured Funds 4,330,000 4,330,000 - Total - - - - - - 4,330,000 - 4,330,000 Expenditures Design/Construction 4,000,000 4,000,000 Project Management 330,000 330,000 - Total - - - - - - 4,330,000 - 4,330,000 City of Port Townsend 2019 Budget Page 80 of 152 Capital Improvement Plan 2019 - 2024 Sewer * This plan shows the 6-year plan for capital projects. 2019 2019 2019 2020 2021 2022 2023 2024 6-Year Total Project Preliminary Supplemental 1 Revised Cliff Street Sewer Funding Sources Unsecured Funds 425,000 425,000 - Total - - - - 425,000 - - - 425,000 Expenditures Design/Construction 375,000 375,000 Project Management 50,000 50,000 - Total - - - - 425,000 - - - 425,000 Infiltration/Inflow Removal Desirable Investment in System Funding Sources Unsecured Funds 260,000 260,000 Total - - - - - 260,000 - - 260,000 Expenditures Design/Construction 200,000 200,000 Project Management 60,000 60,000 - Total - - - - - 260,000 - - 260,000 Wastewater Master Plan/WWTP Funding Sources Sewer Capital Surcharge 130,000 130,000 Total - - - 130,000 - - - - 130,000 Expenditures Design/Construction 100,000 100,000 Project Management 30,000 30,000 - Total - - - 130,000 - - - - 130,000 City of Port Townsend 2019 Budget Page 81 of 152 Capital Improvement Plan 2019 - 2024 Storm * This plan shows the 6-year plan for capital projects. 2019 2019 2019 2020 2021 2022 2023 2024 6-Year Total Project Preliminary Supplemental 1 Revised 8001 Stormwater Management Plan Funding Sources Storm Capital Surcharge - Line of Credit 30,000 - 30,000 Total 30,000 - - - - - - 30,000 Expenditures Design/Construction - Project Management 30,000 30,000 - Total 30,000 - - - - - - - 30,000 8028 CERB Regional Facility Funding Sources CERB 800,000 800,000 Operating Transfer 30,000 30,000 Total 830,000 - - - - - - - 830,000 Expenditures Design/Construction 708,000 708,000 Project Management 100,000 100,000 - Total 808,000 - - - - - - - 808,000 8022 Logan Street Funding Sources Operating Transfer 10,000 - 50,000 60,000 Total 10,000 - - 50,000 - - - - 60,000 Expenditures Design/Construction 5,000 35,000 40,000 Project Management 5,000 15,000 20,000 - Total 10,000 - - 50,000 - - - - 60,000 City of Port Townsend 2019 Budget Page 82 of 152 Capital Improvement Plan 2019 - 2024 Storm * This plan shows the 6-year plan for capital projects. 2019 2019 2019 2020 2021 2022 2023 2024 6-Year Total Project Preliminary Supplemental 1 Revised 8000 Storm System Improvements Funding Sources Operating Transfer 120,000 120,000 120,000 120,000 120,000 120,000 720,000 Unsecured Funds 400,000 400,000 800,000 Total 120,000 - - 520,000 120,000 120,000 120,000 520,000 1,520,000 Expenditures Design/Construction 90,000 345,000 90,000 90,000 90,000 345,000 1,050,000 Project Management 30,000 175,000 30,000 30,000 30,000 175,000 470,000 - Total 120,000 - 520,000 120,000 120,000 120,000 520,000 1,520,000 16th St - Sheridan to Landes Funding Sources Unsecured Funds 60,000 127,460 187,460 Total - - - - 60,000 127,460 - - 187,460 Expenditures Design/Construction 40,000 87,460 127,460 Project Management 20,000 40,000 60,000 - Total - - - - 60,000 127,460 - - 187,460 Hancock St & 32nd St Funding Sources Unsecured Funds 60,000 121,300 181,300 Total - - - - - 60,000 121,300 - 181,300 Expenditures Design/Construction 40,000 81,300 121,300 Project Management 20,000 40,000 60,000 - Total - - - - - 60,000 121,300 - 181,300 City of Port Townsend 2019 Budget Page 83 of 152 Capital Improvement Plan 2019 - 2024 Storm * This plan shows the 6-year plan for capital projects. 2019 2019 2019 2020 2021 2022 2023 2024 6-Year Total Project Preliminary Supplemental 1 Revised Center St - San Juan Ave to Olympic Ave Funding Sources Unsecured Funds 125,000 262,940 387,940 Total - - - - - - 125,000 262,940 387,940 Expenditures Design/Construction 85,000 172,940 257,940 Project Management 40,000 90,000 130,000 - Total - - - - - - 125,000 262,940 387,940 12th St ROW, Logan St & 14th St Funding Sources Unsecured Funds 150,000 351,620 501,620 Total - - - - 150,000 351,620 - - 501,620 Expenditures Design/Construction 100,000 251,620 351,620 Project Management 50,000 100,000 150,000 - Total - - - - 150,000 351,620 - - 501,620 Lawrence St at Polk St, Taylor St & Tyler St Funding Sources Unsecured Funds 300,000 528,380 828,380 Total - - - - - - 300,000 528,380 828,380 Expenditures Design/Construction 200,000 348,380 548,380 Project Management 100,000 180,000 280,000 - Total - - - - - - 300,000 528,380 828,380 City of Port Townsend 2019 Budget Page 84 of 152 Capital Improvement Plan 2019 - 2024 Storm * This plan shows the 6-year plan for capital projects. 2019 2019 2019 2020 2021 2022 2023 2024 6-Year Total Project Preliminary Supplemental 1 Revised Basin Planning Studies Funding Sources - Unsecured Funds 50,000 50,000 50,000 150,000 Total - - - 50,000 - 50,000 - 50,000 150,000 Expenditures Design/Construction 25,000 25,000 25,000 75,000 Project Management 25,000 25,000 25,000 75,000 - Total - - 50,000 - 50,000 - 50,000 150,000 City of Port Townsend 2019 Budget Page 85 of 152 Capital Improvement Plan 2019 - 2024 City-Wide * This plan shows the 6-year plan for capital projects. 2019 2019 2019 2020 2021 2022 2023 2024 6-Year Total General Government Funding Sources Preliminary Supplemental 1 Revised CDBG 45,000 - - - - - - - 45,000 Donations 75,000 - - - - - - - 75,000 Voted Bond 97,500 - - - - - - - 97,500 2017 Bond 50,000 - - - - - - - 50,000 Fund Balance - - - - - - - - - Total 267,500 - - - - - - 267,500 - Expenditures Design/Construction 195,000 - - - - - - - 195,000 Project Management 30,000 - - - - - - - 30,000 - Total 225,000 - - - - - - 225,000 - Street Funding Sources WSDOT - STP funds 435,000 - - - - - - - 435,000 TAP 95,000 - - - - - - - 95,000 TIB 50,000 - - - - - - - 50,000 2017 Bond 725,000 - - - - - - - 725,000 CERB 300,000 - - - - - - - 300,000 REET - - - - - - - - - Fund Balance - - - - - - - - - Line of Credit 120,000 - - - - - - - 120,000 WSDOT - Unsecured - - - - - 600,000 4,000,000 - 4,600,000 Unsecured Funds - - - 2,150,000 690,000 200,000 8,400,000 2,050,000 13,490,000 Total 1,725,000 - - 2,150,000 690,000 800,000 12,400,000 2,050,000 19,815,000 - Expenditures ROW - - - - - - - - - Line of Credit (LOC)300,000 - - - - - - - 300,000 Interest on LOC 19,287 - - - - - - - 19,287 Design 463,000 - - - - 750,000 350,000 - 1,563,000 Construction 799,500 - - 1,900,000 650,000 50,000 11,450,000 2,050,000 16,899,500 Project Management 362,500 - - 250,000 60,000 - 600,000 - 1,272,500 1,944,287 - - 2,150,000 710,000 800,000 12,400,000 2,050,000 20,054,287 - Water Funding Sources Capital Surcharge - - - - - - - - - DWSRF - - - - - - - - - PWTF - - - - - - - - - Operating Transfer 250,000 - - 200,000 200,000 200,000 200,000 200,000 1,250,000 SDC 50,000 - - - - - - - 50,000 OGWS - - - - - - - - - Unsecured Funds - - - 750,000 - - - - 750,000 Total 300,000 - - 950,000 200,000 200,000 200,000 200,000 2,050,000 - Expenditures Design/Construction 250,000 - - 920,000 200,000 200,000 200,000 200,000 1,970,000 Project Management 50,000 - - 30,000 - - - - 80,000 Interest on LOC 41,000 - - - - - - - 41,000 Total 341,000 - - 950,000 200,000 200,000 200,000 200,000 2,091,000 - Sewer Funding Sources Sewer Capital Surcharge 147,100 - - 290,000 160,000 160,000 160,000 160,000 1,077,100 SDC 250,000 - - 37,500 - - - - 287,500 CCWF Loan/Grant 200,000 - - - - - - - 200,000 Operating Transfer 22,900 - - - - - - - 22,900 LTAC 100,000 - - - - - - - 100,000 Unsecured Funds - - - 4,870,000 425,000 260,000 4,730,000 - 10,285,000 Total 720,000 - 5,197,500 585,000 420,000 4,890,000 160,000 11,972,500 Expenditures Design/Construction 485,000 - - 4,740,000 535,000 360,000 4,510,000 160,000 10,790,000 Project Management 235,000 - - 450,000 50,000 60,000 380,000 - 1,175,000 Total 720,000 - 5,190,000 585,000 420,000 4,890,000 160,000 11,965,000 - Storm Funding Sources CERB 800,000 - - - - - - - 800,000 Storm Fund - - - - - - - - - Operating Transfer 160,000 - - 170,000 120,000 120,000 120,000 120,000 810,000 Line of Credit 30,000 - - - - - - - 30,000 Unsecured Funds - - - 450,000 210,000 589,080 546,300 1,241,320 3,036,700 Total 990,000 - - 620,000 330,000 709,080 666,300 1,361,320 4,676,700 - Expenditures Design/Construction 803,000 - - 405,000 230,000 494,080 456,300 891,320 3,279,700 Project Management 165,000 - - 215,000 100,000 215,000 210,000 470,000 1,375,000 968,000 - 620,000 330,000 709,080 666,300 1,361,320 4,654,700 City of Port Townsend 2019 Budget Page 86 of 152 City of Port Townsend 2019 Budget Page 87 of 152 City of Port Townsend 2019 Budget Page 88 of 152 Si x Ye a r Tr a n s p o r t a t i o n Im p r o v e m e n t Pr o g r a m  (2 0 1 9 Ǧ  20 2 4 ) Ž Ƶ Ŷ ƚ LJ  E Ă ŵ Ğ :Ğ Ĩ Ĩ Ğ ƌ Ɛ Ž Ŷ   Ž Ƶ Ŷ ƚ LJ WŽ ƌ ƚ  d Ž ǁ Ŷ Ɛ Ğ Ŷ Ě DW K ͬ Z d W K ͗ EK E ͬ W  E Ž ͘  E Ž ͘ ͗ ϭϲ ŝ ƚ LJ  E Ž ͘ ͗ ϭϬ Ϭ ϱ &Ƶ Ŷ Ě  ^ Ž Ƶ ƌ Đ Ğ  / Ŷ Ĩ Ž ƌ ŵ Ă ƚ ŝ Ž Ŷ  dž Ɖ Ğ Ŷ Ě ŝ ƚ Ƶ ƌ Ğ  ^ Đ Ś Ğ Ě Ƶ ů Ğ  & Ƶ Ŷ Đ ƚ ŝ Ž Ŷ Ă ů   ů Ă Ɛ Ɛ W ƌ ŝ Ž ƌ ŝ ƚ LJ  E Ƶ ŵ ď Ğ ƌ WƌŽ ũ Ğ Đ ƚ W ƌ Ž ũ Ğ Đ ƚ  > Ğ Ŷ Ő ƚ Ś W Ś Ă Ɛ Ğ W Ś Ă Ɛ Ğ  ^ ƚ Ă ƌ ƚ  z Ğ Ă ƌ & Ƶ Ŷ Ě ŝ Ŷ Ő  ^ ƚ Ă ƚ Ƶ Ɛ &Ğ Ě Ğ ƌ Ă ů  &Ƶ Ŷ Ě  Ž Ě Ğ & Ğ Ě Ğ ƌ Ă ů  &Ƶ Ŷ Ě Ɛ  ^ƚ Ă ƚ Ğ  & Ƶ Ŷ Ě  Ž Ě Ğ  ^ ƚ Ă ƚ Ğ  & Ƶ Ŷ Ě Ɛ   > Ž Đ Ă ů  & Ƶ Ŷ Ě Ɛ  ϭƐ ƚ Ϯ Ŷ Ě ϯ ƌ Ě ϰ ƚ Ś ϱ ƚ Ś ϲ ƚ Ś ŶǀŝƌŽŶŵĞŶƚdLJƉĞ ZtZĞƋƵŝƌĞĚ ϭϲ ^Z  Ϯ Ϭ  W Ğ Ě Ğ Ɛ ƚ ƌ ŝ Ă Ŷ  t Ă ů Ŭ ǁ Ă LJ Ϭ͘ϭ ϰ E  Ϯ Ϭ Ϯ Ϭ W d  W ϵ ϳ ͕ ϲ ϵ Ϯ       ϭ ͕ ϭ Ϭ Ϯ ͕ ϯ Ϭ ϴ       ϭ ͕ Ϯ Ϭ Ϭ ͕ Ϭ Ϭ Ϭ      z Ĩƌ Ž ŵ ͗  > Ž Ő Ă Ŷ  ^ ƚ ƌ Ğ Ğ ƚ         ƚ Ž ͗  , Ă Ŷ Đ Ž Đ Ŭ  ^ ƚ ƌ Ğ Ğ ƚ Ž Ŷ Ɛ ƚ ƌ Ƶ Đ ƚ ŝ Ž Ŷ  Ž Ĩ  Ă Ŷ  Ğ ů Ğ ǀ Ă ƚ Ğ Ě  ǁ Ă ů Ŭ ǁ Ă LJ  Ž ǀ Ğ ƌ  Ă  ƌ Ă ǀ ŝ Ŷ Ğ  ƚ Ś Ă ƚ  ŝ Ɛ  Ă Ŷ  ϴϬ Ϭ Ζ  Ő Ă Ɖ  Ă ů Ž Ŷ Ő  Ă  Ɖ Ž Ɖ Ƶ ů Ă ƌ ͕  Ś Ğ Ă ǀ ŝ ů LJ  Ƶ Ɛ Ğ Ě  ƌ Ž Ƶ ƚ Ğ  ď LJ  ď Ž ƚ Ś  ƉĞ Ě Ğ Ɛ ƚ ƌ ŝ Ă Ŷ Ɛ  Ă Ŷ Ě  ď ŝ Đ LJ Đ ů ŝ Ɛ ƚ Ɛ ͘ ϭϲ ŝƐ Đ Ž ǀ Ğ ƌ LJ  Z Ž Ă Ě  / Ϭ͘ϳ ϰ W   Ϯ Ϭ Ϯ Ϭ W K d ,  Z ϳ ϳ Ϭ ͕ Ϭ Ϭ Ϭ           ϳ ϳ Ϭ ͕ Ϭ Ϭ Ϭ          z Ĩƌ Ž ŵ ͗  Z Ă ŝ Ŷ ŝ Ğ ƌ  ^ ƚ ƌ Ğ Ğ ƚ         ƚ Ž ͗  ^ Ś Ğ ƌ ŝ Ě Ă Ŷ  ^ ƚ ƌ Ğ Ğ ƚ  E  Ϯ Ϭ Ϯ ϭ W K d ,  Z ϳ ͕ ϱ ϴϬ ͕ Ϭ Ϭ Ϭ       ϳ ͕ ϱ ϴ Ϭ ͕ Ϭ Ϭ Ϭ  ZĞ ď Ƶ ŝ ů Ě  ƌ Ž Ă Ě ǁ Ă LJ ͕  Ɛ ŝ Ě Ğ ǁ Ă ů Ŭ Ɛ ͕  Ě ƌ Ă ŝ Ŷ Ă Ő Ğ ͕  Ɛ Ś Ž Ƶ ů Ě Ğ ƌ  ŝ ŵ Ɖ ƌ Ž ǀ Ğ ŵ Ğ Ŷ ƚ Ɛ ͕  ďŝŬ Ğ  ů Ă Ŷ Ğ Ɛ ϭϰ tĂ Ɛ Ś ŝ Ŷ Ő ƚ Ž Ŷ  ^ ƚ ƌ Ğ Ğ ƚ  Ϭ͘ϯ Ϭ W   Ϯ Ϭ Ϯ Ϯ W ϯ ϱ Ϭ ͕ Ϭ Ϭ Ϭ           ϯ ϱ Ϭ ͕ Ϭ Ϭ Ϭ       E Ĩƌ Ž ŵ ͗  D Ž Ŷ ƌ Ž Ğ  ^ ƚ ƌ Ğ Ğ ƚ      ƚ Ž ͗  d Ă LJ ů Ž ƌ  ^ ƚ ƌ Ğ Ğ ƚ  E  Ϯ Ϭ Ϯ ϯ W Ϯ ͕ Ϭ Ϭ Ϭ ͕ Ϭ Ϭ Ϭ        Ϯ ͕ Ϭ Ϭ Ϭ ͕ Ϭ Ϭ Ϭ      ^ƚƌ Ğ Ğ ƚ Ɛ Đ Ă Ɖ Ğ  ŝ ŵ Ɖ ƌ Ž ǀ Ğ ŵ Ğ Ŷ ƚ Ɛ ͖  Ŷ Ğ ǁ  Đ Ƶ ƌ ď ͕  Ő Ƶ ƚ ƚ Ğ ƌ ͕  Ɖ Ă ǀ Ğ ŵ Ğ Ŷ ƚ ͕  ƐŝĚ Ğ ǁ Ă ů Ŭ  ƌ Ğ Ɖ Ă ŝ ƌ  Ă Ŷ Ě  ƌ Ğ Ɖ ů Ă Đ Ğ ŵ Ğ Ŷ ƚ ϭϰ ^ŝ ŵ Ɛ  t Ă LJ  / ŵ Ɖ ƌ Ž ǀ Ğ ŵ Ğ Ŷ ƚ Ɛ  / / / ϭ͘ϲ Ϭ W   Ϯ Ϭ Ϯ ϯ W t ^  K d ϲ Ϭ Ϭ ͕ Ϭ Ϭ Ϭ           ϲϬ Ϭ ͕ Ϭ Ϭ Ϭ              E Ĩƌ Ž ŵ ͗  ^ Ś Ğ ƌ ŝ Ě Ă Ŷ  ^ ƚ ƌ Ğ Ğ ƚ   ƚ Ž ͗  ^ Z  Ϯ Ϭ  & Ğ ƌ ƌ LJ  d Ğ ƌ ŵ ŝ Ŷ Ă ů  E  Ϯ Ϭ Ϯ ϰ W t ^  K d ϲ ͕ Ϭ ϬϬ ͕ Ϭ Ϭ Ϭ       ϲ͕Ϭ Ϭ Ϭ ͕ Ϭ Ϭ Ϭ         dƵ ƌ Ŷ  ů Ă Ŷ Ğ Ɛ ͕  Ɛ Ś Ž Ƶ ů Ě Ğ ƌ  ŝ ŵ Ɖ ƌ Ž ǀ Ğ ŵ Ğ Ŷ ƚ Ɛ ͕  ŝ Ŷ ƚ Ğ ƌ Ɛ Ğ Đ ƚ ŝ Ž Ŷ  ŝŵ Ɖ ƌ Ž ǀ Ğ ŵ Ğ Ŷ ƚ Ɛ ͕  ď ŝ Ŭ Ğ  ů Ă Ŷ Ğ Ɛ ͕  ƚ ƌ Ă Ŷ Ɛ ŝ ƚ  Ɖ Ƶ ů ů Ž Ƶ ƚ Ɛ ͕  Ɛ ŝ Ě Ğ ǁ Ă ů Ŭ Ɛ ͕  ŵŝƚ ŝ Ő Ă ƚ ŝ Ž Ŷ  Ž Ĩ  Ĩ Ğ ƌ ƌ LJ  ƚ ƌ Ă Ĩ Ĩ ŝ Đ  ŝ ŵ Ɖ Ă Đ ƚ Ɛ ϭϰ ^ŝ ŵ Ɛ  t Ă LJ  / ŵ Ɖ ƌ Ž ǀ Ğ ŵ Ğ Ŷ ƚ Ɛ  / / Ϭ͘Ϯ Ϭ W   Ϯ Ϭ Ϯ ϯ W t ^  K d ϲ Ϭ Ϭ ͕ Ϭ Ϭ Ϭ           ϲϬ Ϭ ͕ Ϭ Ϭ Ϭ           E Ĩƌ Ž ŵ ͗  > Ž Ő Ă Ŷ  ^ ƚ ƌ Ğ Ğ ƚ        ƚ Ž ͗  ^ Ś Ğ ƌ ŝ Ě Ă Ŷ  ^ ƚ ƌ Ğ Ğ ƚ  E  Ϯ Ϭ Ϯ ϰ W t ^  K d ϱ ͕ Ϭ Ϭ Ϭ ͕ ϬϬ Ϭ       ϱ͕Ϭ Ϭ Ϭ ͕ Ϭ Ϭ Ϭ         /Ŷ ƚ Ğ ƌ Ɛ Ğ Đ ƚ ŝ Ž Ŷ  ŝ ŵ Ɖ ƌ Ž ǀ Ğ ŵ Ğ Ŷ ƚ Ɛ ͖  Ɛ Ś Ž Ƶ ů Ě Ğ ƌ  ŝ ŵ Ɖ ƌ Ž ǀ Ğ ŵ Ğ Ŷ ƚ Ɛ ͖  Ě ƌ Ă ŝ Ŷ Ă Ő Ğ ͖  ƚƌ Ă Ŷ Ɛ ŝ ƚ  Ɖ Ƶ ů ů Ž Ƶ ƚ Ɛ ͖  Ɛ ŝ Ě Ğ ǁ Ă ů Ŭ Ɛ ͖  Ɖ Ğ Ě Ğ Ɛ ƚ ƌ ŝ Ă Ŷ  Đ ƌ Ž Ɛ Ɛ ŝ Ŷ Ő Ɛ ͖  Ɛ ƚ Ž ƌ ŵ ǁ Ă ƚ Ğ ƌ  ƚƌ Ğ Ă ƚ ŵ Ğ Ŷ ƚ ϭϰ ^ŝ ŵ Ɛ  t Ă LJ  ; ^ Z  Ϯ Ϭ Ϳ  / Ŷ ƚ Ğ ƌ Ɛ Ğ Đ ƚ ŝ Ž Ŷ  / ŵ Ɖ ƌ Ž ǀ Ğ ŵ Ğ Ŷ ƚ Ɛ Ϭ͘ϭ Ϭ  > > Ϯ Ϭ Ϯ ϰ W t ^  K d Ϯ ͕ Ϭ Ϭ Ϭ ͕ Ϭ Ϭ Ϭ       Ϯ͕Ϭ Ϭ Ϭ ͕ Ϭ Ϭ Ϭ           E Ĩƌ Ž ŵ ͗  < Ğ Ă ƌ Ŷ Ğ LJ  ^ ƚ ƌ Ğ Ğ ƚ          ƚ Ž ͗  t Ă Ɛ Ś ŝ Ŷ Ő ƚ Ž Ŷ  ^ ƚ ƌ Ğ Ğ ƚ /Ŷ ƚ Ğ ƌ Ɛ Ğ Đ ƚ ŝ Ž Ŷ  ŝ ŵ Ɖ ƌ Ž ǀ Ğ ŵ Ğ Ŷ ƚ Ɛ ϭϲ ŝƐ Đ Ž ǀ Ğ ƌ LJ  Z Ž Ă Ě  / / Ϭ͘ϳ ϰ W   Ϯ Ϭ Ϯ Ϯ W K d ,  Z ϯ Ϭ Ϭ ͕ Ϭ Ϭ Ϭ           Ϯ Ϭ Ϭ ͕ Ϭ Ϭ Ϭ           ϱ Ϭ Ϭ ͕ Ϭ Ϭ Ϭ           E Ĩƌ Ž ŵ ͗   ŝ ƚ LJ  > ŝ ŵ ŝ ƚ Ɛ              ƚ Ž ͗  , Ž ǁ Ă ƌ Ě  ^ ƚ ƌ Ğ Ğ ƚ  E  Ϯ Ϭ Ϯ ϰ W K d ,  Z ϯ ͕ Ϭ ϬϬ ͕ Ϭ Ϭ Ϭ       ϯ Ϭ Ϭ ͕ Ϭ Ϭ Ϭ           ϯ͕ϯ Ϭ Ϭ ͕ Ϭ Ϭ Ϭ         ZĞ ď Ƶ ŝ ů Ě  ƌ Ž Ă Ě ǁ Ă LJ ͕  ď ŝ Ŭ Ğ  ů Ă Ŷ Ğ Ɛ ͕  Ɛ ŝ Ě Ğ ǁ Ă ů Ŭ Ɛ ͕  Ɖ Ă ƚ Ś ǁ Ă LJ ͕  ƚ ƌ Ă Ŷ Ɛ ŝ ƚ  ƉƵ ů ů Ž Ƶ ƚ Ɛ ͕  Ě ƌ Ă ŝ Ŷ Ă Ő Ğ ͕  ŝ Ŷ ƚ Ğ ƌ Ɛ Ğ Đ ƚ ŝ Ž Ŷ  ŝ ŵ Ɖ ƌ Ž ǀ Ğ ŵ Ğ Ŷ ƚ Ɛ ϭϲ ^Ă Ŷ  : Ƶ Ă Ŷ  / ŵ Ɖ ƌ Ž ǀ Ğ ŵ Ğ Ŷ ƚ Ɛ  / / Ϭ͘ϳ ϱ  > > Ϯ Ϭ Ϯ ϰ W ϭ ͕ ϳ Ϭ Ϭ ͕ Ϭ Ϭ Ϭ        ϭ͕ϳ Ϭ Ϭ ͕ Ϭ Ϭ Ϭ           E Ĩƌ Ž ŵ ͗  > Ž Ɖ Ğ nj  Θ  ^ Ă Ŷ  : Ƶ Ă Ŷ   ƚ Ž ͗  ϰ ϵ ƚ Ś  Θ  : Ă Đ Ŭ ŵ Ă Ŷ 'ƌŝ Ŷ Ě  Ă Ŷ Ě  ŝ Ŷ Ɛ ƚ Ă ů ů  Ŷ Ğ ǁ  ƌ Ž Ă Ě  Ɛ Ƶ ƌ Ĩ Ă Đ Ğ ͘  Z Ğ Ɖ ů Ă Đ Ğ  Ƶ ƚ ŝ ů ŝ ƚ LJ  ů ŝ Ŷ Ğ Ɛ ͘  ^ŝĚ Ğ ǁ Ă ů Ŭ  Ă Ŷ Ě  ď ŝ Ŭ Ğ  ů Ă Ŷ Ğ Ɛ ͘ ϭ ϯϮ ϰ ϱ ϲ ϳ ϴ Pa g e 1 of 3 Ci t y of Po r t To w n s e n d 20 1 9 Bu d g e t Page 89 of 152 Si x Ye a r Tr a n s p o r t a t i o n Im p r o v e m e n t Pr o g r a m  (2 0 1 9 Ǧ  20 2 4 ) Ž Ƶ Ŷ ƚ LJ  E Ă ŵ Ğ :Ğ Ĩ Ĩ Ğ ƌ Ɛ Ž Ŷ   Ž Ƶ Ŷ ƚ LJ  WŽ ƌ ƚ  d Ž ǁ Ŷ Ɛ Ğ Ŷ Ě DW K ͬ Z d W K ͗ EK E ͬ W  E Ž ͘  E Ž ͘ ͗ ϭϲ ŝ ƚ LJ  E Ž ͘ ͗ ϭϬ Ϭ ϱ &Ƶ Ŷ Ě  ^ Ž Ƶ ƌ Đ Ğ  / Ŷ Ĩ Ž ƌ ŵ Ă ƚ ŝ Ž Ŷ  dž Ɖ Ğ Ŷ Ě ŝ ƚ Ƶ ƌ Ğ  ^ Đ Ś Ğ Ě Ƶ ů Ğ  & Ƶ Ŷ Đ ƚ ŝ Ž Ŷ Ă ů   ů Ă Ɛ Ɛ W ƌ ŝ Ž ƌ ŝ ƚ LJ  E Ƶ ŵ ď Ğ ƌ WƌŽ ũ Ğ Đ ƚ W ƌ Ž ũ Ğ Đ ƚ  > Ğ Ŷ Ő ƚ Ś W Ś Ă Ɛ Ğ W Ś Ă Ɛ Ğ  ^ ƚ Ă ƌ ƚ  z Ğ Ă ƌ & Ƶ Ŷ Ě ŝ Ŷ Ő  ^ ƚ Ă ƚ Ƶ Ɛ &Ğ Ě Ğ ƌ Ă ů  &Ƶ Ŷ Ě  Ž Ě Ğ & Ğ Ě Ğ ƌ Ă ů  &Ƶ Ŷ Ě Ɛ  ^ƚ Ă ƚ Ğ  & Ƶ Ŷ Ě  Ž Ě Ğ  ^ ƚ Ă ƚ Ğ  & Ƶ Ŷ Ě Ɛ   > Ž Đ Ă ů  & Ƶ Ŷ Ě Ɛ  ϭƐ ƚ Ϯ Ŷ Ě ϯ ƌ Ě ϰ ƚ Ś ϱ ƚ Ś ϲ ƚ Ś ŶǀŝƌŽŶŵĞŶƚdLJƉĞ ZtZĞƋƵŝƌĞĚ ϭϲ ,Ă Ɛ ƚ ŝ Ŷ Ő Ɛ   ǀ Ğ Ŷ Ƶ Ğ  / ŵ Ɖ ƌ Ž ǀ Ğ ŵ Ğ Ŷ ƚ Ɛ ϭ͘ϲ Ϭ  > > Ϯ Ϭ Ϯ ϰ W ϯ ͕ ϳ Ϯ ϱ ͕ Ϭ Ϭ Ϭ        ϯ͕ϳ Ϯ ϱ ͕ Ϭ Ϭ Ϭ           E Ĩƌ Ž ŵ ͗   ŝ Ɛ Đ Ž ǀ Ğ ƌ LJ  Z Ž Ă Ě        ƚ Ž ͗   ŝ ƚ LJ  > ŝ ŵ ŝ ƚ Ɛ ^Ś Ž Ƶ ů Ě Ğ ƌ  ǁ ŝ Ě Ğ Ŷ ŝ Ŷ Ő ͕  ď ŝ Ŭ Ğ  ů Ă Ŷ Ğ Ɛ ͕  Ɖ Ă ǀ Ğ ŵ Ğ Ŷ ƚ  Ž ǀ Ğ ƌ ů Ă LJ ͕  Ě ƌ Ă ŝ Ŷ Ă Ő Ğ  ŝŵ Ɖ ƌ Ž ǀ Ğ ŵ Ğ Ŷ ƚ Ɛ ͕  Ɛ ŝ Ě Ğ ǁ Ă ů Ŭ Ɛ  Ž ƌ  ŵ Ƶ ů ƚ ŝ  Ƶ Ɛ Ğ  Ɖ Ă ƚ Ś ǁ Ă LJ ϭϲ >Ă ǁ ƌ Ğ Ŷ Đ Ğ  ^ ƚ ƌ Ğ Ğ ƚ  / ŵ Ɖ ƌ Ž ǀ Ğ ŵ Ğ Ŷ ƚ Ɛ Ϭ͘ϱ Ϭ  > > Ϯ Ϭ Ϯ ϰ W ϭ ͕ Ϭ Ϭ Ϭ ͕ Ϭ Ϭ Ϭ        ϭ͕Ϭ Ϭ Ϭ ͕ Ϭ Ϭ Ϭ           E Ĩƌ Ž ŵ ͗  < Ğ Ă ƌ Ŷ Ğ LJ  ^ ƚ ƌ Ğ Ğ ƚ       ƚ Ž ͗  , Ă ƌ ƌ ŝ Ɛ Ž Ŷ  ^ ƚ ƌ Ğ Ğ ƚ 'ƌŝ Ŷ Ě ͕  ď Ă Ɛ Ğ  Ƶ Ɖ Ő ƌ Ă Ě Ğ ͕  ƌ Ğ Ɖ Ă ǀ Ğ ͕  Ɛ ŝ Ě Ğ ǁ Ă ů Ŭ Ɛ ͕  Ɛ Ś Ž Ƶ ů Ě Ğ ƌ  ŝŵ Ɖ ƌ Ž ǀ Ğ ŵ Ğ Ŷ ƚ Ɛ ϭϲ :Ă Đ Ŭ Ɛ Ž Ŷ  ͬ  t Ă ů Ŷ Ƶ ƚ  / ŵ Ɖ ƌ Ž ǀ Ğ ŵ Ğ Ŷ ƚ Ɛ Ϭ͘ϰ ϱ  > > Ϯ Ϭ Ϯ ϰ W ϳ Ϭ Ϭ ͕ Ϭ Ϭ Ϭ           ϳϬ Ϭ ͕ Ϭ Ϭ Ϭ              E Ĩƌ Ž ŵ ͗  Z Ğ Ğ Ě  ^ ƚ ƌ Ğ Ğ ƚ                ƚ Ž ͗  t  ^ ƚ ƌ Ğ Ğ ƚ ^Ś Ž Ƶ ů Ě Ğ ƌ  ŝ ŵ Ɖ ƌ Ž ǀ Ğ ŵ Ğ Ŷ ƚ Ɛ ͕  Ž ǀ Ğ ƌ ů Ă LJ ͕  Ě ƌ Ă ŝ Ŷ Ă Ő Ğ  ŝ ŵ Ɖ ƌ Ž ǀ Ğ ŵ Ğ Ŷ ƚ Ɛ ͕  ƐŝĚ Ğ ǁ Ă ů Ŭ Ɛ ϭϲ ,Ž ǁ Ă ƌ Ě  ^ ƚ ƌ Ğ Ğ ƚ  ͬ  Z Ă ŝ Ŷ ŝ Ğ ƌ  ^ ƚ ƌ Ğ Ğ ƚ   dž ƚ Ğ Ŷ Ɛ ŝ Ž Ŷ  / / Ϭ͘ϲ Ϭ W   Ϯ Ϭ Ϯ ϯ W K d ,  Z Ϯ Ϭ Ϭ ͕ Ϭ Ϭ Ϭ           ϱ Ϭ Ϭ ͕ Ϭ Ϭ Ϭ           ϳ Ϭ Ϭ ͕ Ϭ Ϭ Ϭ           E Ĩƌ Ž ŵ ͗   ŝ Ɛ Đ Ž ǀ Ğ ƌ LJ  Z Ž Ă Ě      ƚ Ž ͗  Ϯ Ϭ ƚ Ś  ^ ƚ ƌ Ğ Ğ ƚ  E  Ϯ Ϭ Ϯ ϰ W K d ,  Z Ϯ ͕ Ϭ Ϭ Ϭ ͕ Ϭ Ϭ Ϭ       ϰ ͕ Ϭ Ϭ Ϭ ͕ Ϭ Ϭ Ϭ        ϲ͕Ϭ Ϭ Ϭ ͕ Ϭ Ϭ Ϭ         EĞ ǁ  Ɛ ƚ ƌ Ğ Ğ ƚ  Ğ dž ƚ Ğ Ŷ Ɛ ŝ Ž Ŷ ϭϰ Dŝ ů ů  Z Ž Ă Ě  / Ŷ ƚ Ğ ƌ Ɛ Ğ Đ ƚ ŝ Ž Ŷ Ϭ͘Ϭ Ϭ  > > Ϯ Ϭ Ϯ ϰ W t ^  K d ϭ Ϭ ͕ Ϭ Ϭ Ϭ ͕ Ϭ Ϭ Ϭ     ϭϬ ͕ Ϭ Ϭ Ϭ ͕ Ϭ Ϭ Ϭ         z Ĩƌ Ž ŵ ͗  ^ Z  Ϯ Ϭ                           ƚ Ž ͗   ŝ Ɛ Đ Ž ǀ Ğ ƌ LJ  Z Ž Ă Ě /Ŷ ƚ Ğ ƌ Ɛ Ğ Đ ƚ ŝ Ž Ŷ  ŝ ŵ Ɖ ƌ Ž ǀ Ğ ŵ Ğ Ŷ ƚ Ɛ ϭϲ Ěŵ ŝ ƌ Ă ů ƚ LJ   ǀ Ğ Ŷ Ƶ Ğ  / ŵ Ɖ ƌ Ž ǀ Ğ ŵ Ğ Ŷ ƚ Ɛ Ϭ͘ϭ ϳ  > > Ϯ Ϭ Ϯ ϰ W ϳ Ϭ Ϭ ͕ Ϭ Ϭ Ϭ           ϳϬ Ϭ ͕ Ϭ Ϭ Ϭ              E Ĩƌ Ž ŵ ͗  ^ Ă Ŷ  : Ƶ Ă Ŷ   ǀ Ğ Ŷ Ƶ Ğ    ƚ Ž ͗  & Ž ƌ ƚ  t Ž ƌ Ě Ğ Ŷ  ^ ƚ Ă ƚ Ğ  W Ă ƌ Ŭ ^Ś Ž Ƶ ů Ě Ğ ƌ  ŝ ŵ Ɖ ƌ Ž ǀ Ğ ŵ Ğ Ŷ ƚ Ɛ ͕  Ɛ ŝ Ě Ğ ǁ Ă ů Ŭ ͕  ď ŝ Ŭ Ğ  ů Ă Ŷ Ğ Ɛ ͕  Ě ƌ Ă ŝ Ŷ Ă Ő Ğ ϭϲ DŽ Ŷ ƌ Ž Ğ  ^ ƚ ƌ Ğ Ğ ƚ  / ŵ Ɖ ƌ Ž ǀ Ğ ŵ Ğ Ŷ ƚ Ɛ Ϭ͘Ϯ Ϯ  > > Ϯ Ϭ Ϯ ϰ W ϭ ͕ Ϭ Ϭ Ϭ ͕ Ϭ Ϭ Ϭ        ϭ͕Ϭ Ϭ Ϭ ͕ Ϭ Ϭ Ϭ           E Ĩƌ Ž ŵ ͗  t Ă Ɛ Ś ŝ Ŷ Ő ƚ Ž Ŷ  ^ ƚ ƌ Ğ Ğ ƚ        ƚ Ž ͗  > Ă ǁ ƌ Ğ Ŷ Đ Ğ  ^ ƚ ƌ Ğ Ğ ƚ Ě Ě ƌ Ğ Ɛ Ɛ  ƌ Ž Ă Ě  Ɛ Ğ ƚ ƚ ů Ğ ŵ Ğ Ŷ ƚ ͕  ƌ Ğ Ͳ Ě Ž  Ɛ Ƶ ď Ő ƌ Ă Ě Ğ ͕  ƌ Ğ Ɖ Ă ǀ Ğ ϭϲ DĐ W Ś Ğ ƌ Ɛ Ž Ŷ  ^ ƚ ƌ Ğ Ğ ƚ  / ŵ Ɖ ƌ Ž ǀ Ğ ŵ Ğ Ŷ ƚ Ɛ Ϭ͘ϱ ϳ  > > Ϯ Ϭ Ϯ ϰ W ϭ ͕ ϳ ϴ Ϭ ͕ Ϭ Ϭ Ϭ        ϭ͕ϳ ϴ Ϭ ͕ Ϭ Ϭ Ϭ           E Ĩƌ Ž ŵ ͗  ^ ŝ ŵ Ɛ  t Ă LJ  ^ Z  Ϯ Ϭ        ƚ Ž ͗   ŝ Ɛ Đ Ž ǀ Ğ ƌ LJ  Z Ž Ă Ě ZŽ Ă Ě ǁ Ă LJ  ƌ Ğ ď Ƶ ŝ ů Ě ͕  Ɛ ŝ Ě Ğ ǁ Ă ů Ŭ Ɛ ͕  ď ŝ Ŭ Ğ  ů Ă Ŷ Ğ Ɛ ϭϲ ůĂ ŝ Ŷ Ğ  ^ ƚ ƌ Ğ Ğ ƚ  / ŵ Ɖ ƌ Ž ǀ Ğ ŵ Ğ Ŷ ƚ Ɛ Ϭ͘ϱ Ϭ  > > Ϯ Ϭ Ϯ ϰ W ϱ Ϭ Ϭ ͕ Ϭ Ϭ Ϭ           ϱϬ Ϭ ͕ Ϭ Ϭ Ϭ              E Ĩƌ Ž ŵ ͗  t Ă ů Ŭ Ğ ƌ  ^ ƚ ƌ Ğ Ğ ƚ            ƚ Ž ͗  d LJ ů Ğ ƌ  ^ ƚ ƌ Ğ Ğ ƚ ^ŝĚ Ğ ǁ Ă ů Ŭ ͕  Ɛ Ś Ž Ƶ ů Ě Ğ ƌ  ŝ ŵ Ɖ ƌ Ž ǀ Ğ ŵ Ğ Ŷ ƚ Ɛ ͕  Ě ƌ Ă ŝ Ŷ Ă Ő Ğ ͕  Đ Ƶ ƌ ď  Ă Ŷ Ě  Ő Ƶ ƚ ƚ Ğ ƌ ϬϬ EŽ Ŷ Ͳ D Ž ƚ Ž ƌ ŝ nj Ğ Ě  D Ƶ ů ƚ ŝ  D Ž Ě Ă ů  > Ž Ž Ɖ  d ƌ Ă ŝ ů ϭ͘ϵ ϰ  > > Ϯ Ϭ Ϯ ϰ W ^ d W  ;  Ϳ ϭ ϱ Ϭ ͕ Ϭ Ϭ Ϭ     K d ,  Z ϯ ϱ Ϭ ͕ Ϭ Ϭ Ϭ           Ϯ Ϭ Ϭ ͕ Ϭ Ϭ Ϭ           ϳϬ Ϭ ͕ Ϭ Ϭ Ϭ              E Ĩƌ Ž ŵ ͗  < Ğ Ă ƌ Ŷ Ğ LJ  ^ ƚ ƌ Ğ Ğ ƚ      ƚ Ž ͗   ŝ Ɛ Đ Ž ǀ Ğ ƌ LJ  Z Ě >Ž Ž Ɖ  ƚ ƌ Ă ŝ ů  Ă Ɛ  ŝ Ě Ğ Ŷ ƚ ŝ Ĩ ŝ Ğ Ě  ŝ Ŷ  E Ž Ŷ Ͳ D Ž ƚ Ž ƌ ŝ nj Ğ Ě  d ƌ Ă Ŷ Ɛ Ɖ Ž ƌ ƚ Ă ƚ ŝ Ž Ŷ  W ů Ă Ŷ ϭϵ ϭϬ ƚ Ś  ^ ƚ ƌ Ğ Ğ ƚ Ϭ͘ϯ ϯ  > > Ϯ Ϭ Ϯ ϰ W ϲϬ Ϭ ͕ Ϭ Ϭ Ϭ           ϲϬ Ϭ ͕ Ϭ Ϭ Ϭ              E Ĩƌ Ž ŵ ͗  ^ Z  Ϯ Ϭ               ƚ Ž ͗  ^ Ś Ğ ƌ ŝ Ě Ă Ŷ ^ŝĚ Ğ ǁ Ă ů Ŭ Ɛ ͕  ď ŝ Ŭ Ğ  ů Ă Ŷ Ğ Ɛ ͕  Ě ƌ Ă ŝ Ŷ Ă Ő Ğ ͕  Ɛ Ś Ž Ƶ ů Ě Ğ ƌ Ɛ ϵ ϭϬ ϭϭ ϭϮ ϭϯ ϭϰ ϭϱ ϭϲ ϭϳ ϭϴ ϭϵ Pa g e 2 of 3 Ci t y of Po r t To w n s e n d 20 1 9 Bu d g e t Page 90 of 152 Si x Ye a r Tr a n s p o r t a t i o n Im p r o v e m e n t Pr o g r a m  (2 0 1 9 Ǧ  20 2 4 ) Ž Ƶ Ŷ ƚ LJ  E Ă ŵ Ğ :Ğ Ĩ Ĩ Ğ ƌ Ɛ Ž Ŷ   Ž Ƶ Ŷ ƚ LJ  WŽ ƌ ƚ  d Ž ǁ Ŷ Ɛ Ğ Ŷ Ě DW K ͬ Z d W K ͗ EK E ͬ W  E Ž ͘  E Ž ͘ ͗ ϭϲ ŝ ƚ LJ  E Ž ͘ ͗ ϭϬ Ϭ ϱ &Ƶ Ŷ Ě  ^ Ž Ƶ ƌ Đ Ğ  / Ŷ Ĩ Ž ƌ ŵ Ă ƚ ŝ Ž Ŷ  dž Ɖ Ğ Ŷ Ě ŝ ƚ Ƶ ƌ Ğ  ^ Đ Ś Ğ Ě Ƶ ů Ğ  & Ƶ Ŷ Đ ƚ ŝ Ž Ŷ Ă ů   ů Ă Ɛ Ɛ W ƌ ŝ Ž ƌ ŝ ƚ LJ  E Ƶ ŵ ď Ğ ƌ WƌŽ ũ Ğ Đ ƚ W ƌ Ž ũ Ğ Đ ƚ  > Ğ Ŷ Ő ƚ Ś W Ś Ă Ɛ Ğ W Ś Ă Ɛ Ğ  ^ ƚ Ă ƌ ƚ  z Ğ Ă ƌ & Ƶ Ŷ Ě ŝ Ŷ Ő  ^ ƚ Ă ƚ Ƶ Ɛ &Ğ Ě Ğ ƌ Ă ů  &Ƶ Ŷ Ě  Ž Ě Ğ & Ğ Ě Ğ ƌ Ă ů  &Ƶ Ŷ Ě Ɛ  ^ƚ Ă ƚ Ğ  & Ƶ Ŷ Ě  Ž Ě Ğ  ^ ƚ Ă ƚ Ğ  & Ƶ Ŷ Ě Ɛ   > Ž Đ Ă ů  & Ƶ Ŷ Ě Ɛ  ϭƐ ƚ Ϯ Ŷ Ě ϯ ƌ Ě ϰ ƚ Ś ϱ ƚ Ś ϲ ƚ Ś ŶǀŝƌŽŶŵĞŶƚdLJƉĞ ZtZĞƋƵŝƌĞĚ ϭϳ ϵƚŚ  ^ ƚ ƌ Ğ Ğ ƚ Ϭ͘ϰ Ϭ  > > Ϯ Ϭ Ϯ ϰ W ϳϬ Ϭ ͕ Ϭ Ϭ Ϭ           ϳϬ Ϭ ͕ Ϭ Ϭ Ϭ              E Ĩƌ Ž ŵ ͗  D Đ W Ś Ğ ƌ Ɛ Ž Ŷ          ƚ Ž ͗  ^ Ś Ğ ƌ ŝ Ě Ă Ŷ ^ŝĚ Ğ ǁ Ă ů Ŭ Ɛ ͕  ď ŝ Ŭ Ğ  ů Ă Ŷ Ğ Ɛ ϭϲ ϭϮ ƚ Ś  ^ ƚ ƌ Ğ Ğ ƚ Ϭ͘ϯ ϴ  > > Ϯ Ϭ Ϯ ϰ W ϳϬ Ϭ ͕ Ϭ Ϭ Ϭ           ϳϬ Ϭ ͕ Ϭ Ϭ Ϭ              E Ĩƌ Ž ŵ ͗  > Ă Ŷ Ě Ğ Ɛ                        ƚ Ž ͗  ^ Ś Ğ ƌ ŝ Ě Ă Ŷ ^ŝĚ Ğ ǁ Ă ů Ŭ Ɛ ͕  Ɛ Ś Ž Ƶ ů Ě Ğ ƌ Ɛ ͕  Ě ƌ Ă ŝ Ŷ Ă Ő Ğ  ŝ ŵ Ɖ ƌ Ž ǀ Ğ ŵ Ğ Ŷ ƚ Ɛ ϭϲ ϭϰ ƚ Ś  ^ ƚ ƌ Ğ Ğ ƚ  Ϭ͘ϯ ϴ  > > Ϯ Ϭ Ϯ ϰ W ϳ Ϭ Ϭ ͕ Ϭ Ϭ Ϭ           ϳϬ Ϭ ͕ Ϭ Ϭ Ϭ              E Ĩƌ Ž ŵ ͗  > Ă Ŷ Ě Ğ Ɛ  ^ ƚ                   ƚ Ž ͗  ^ Ś Ğ ƌ ŝ Ě Ă Ŷ  ^ ƚ ^ŝĚ Ğ ǁ Ă ů Ŭ Ɛ ͕  ^ Ś Ž Ƶ ů Ě Ğ ƌ  ŝ ŵ Ɖ ƌ Ž ǀ Ğ ŵ Ğ Ŷ ƚ Ɛ ͕  Ě ƌ Ă ŝ Ŷ Ă Ő Ğ  ŝ ŵ Ɖ ƌ Ž ǀ Ğ ŵ Ğ Ŷ ƚ Ɛ ϭϲ Ś Ğ ƌ ƌ LJ  ͬ  Z Ğ Ě ǁ Ž Ž Ě  / ŵ Ɖ ƌ Ž ǀ Ğ ŵ Ğ Ŷ ƚ Ɛ Ϭ͘ϴ Ϭ  > > Ϯ Ϭ Ϯ ϰ W ϭ ͕ Ϭ Ϭ Ϭ ͕ Ϭ Ϭ Ϭ        ϭ͕Ϭ Ϭ Ϭ ͕ Ϭ Ϭ Ϭ           E Ĩƌ Ž ŵ ͗  &  ^ ƚ                       ƚ Ž ͗  t  ^ ƚ ^Ś Ž Ƶ ů Ě Ğ ƌ  ŝ ŵ Ɖ ƌ Ž ǀ Ğ ŵ Ğ Ŷ ƚ Ɛ ͕  Ž ǀ Ğ ƌ ů Ă LJ ͕  Ě ƌ Ă ŝ Ŷ Ă Ő Ğ  ŝ ŵ Ɖ ƌ Ž ǀ Ğ ŵ Ğ Ŷ ƚ Ɛ ϭϲ ŝƐ Đ Ž ǀ Ğ ƌ LJ  Z Ž Ă Ě  / ŵ Ɖ ƌ Ž ǀ Ğ ŵ Ğ Ŷ ƚ Ɛ  / / / Ϭ͘ϳ Ϭ W   Ϯ Ϭ Ϯ ϰ W d /  ϯ ϱ Ϭ ͕ Ϭ Ϭ Ϭ           ϱ Ϭ ͕ Ϭ Ϭ Ϭ             ϰϬ Ϭ ͕ Ϭ Ϭ Ϭ              E Ĩƌ Ž ŵ ͗  , Ă Ɛ ƚ ŝ Ŷ Ő Ɛ   ǀ Ğ Ŷ Ƶ Ğ     ƚ Ž ͗  ϭ ϵ ƚ Ś  ^ ƚ ƌ Ğ Ğ ƚ  E  Ϯ Ϭ Ϯ ϰ W K d ,  Z ϭ ͕ ϲ Ϭ Ϭ ͕ Ϭ Ϭ Ϭ       ϭ͕ϲ Ϭ Ϭ ͕ Ϭ Ϭ Ϭ         ZĞ ď Ƶ ŝ ů Ě  ƌ Ž Ă Ě ǁ Ă LJ ͕  Ɛ Ś Ž Ƶ ů Ě Ğ ƌ  ŝ ŵ Ɖ ƌ Ž ǀ Ğ ŵ Ğ Ŷ ƚ Ɛ ͕  ď ŝ Ŭ Ğ  ů Ă Ŷ Ğ Ɛ ͕  ƐŝĚ Ğ ǁ Ă ů Ŭ Ɛ ͕  Ě ƌ Ă ŝ Ŷ Ă Ő Ğ ͕  ŝ Ŷ ƚ Ğ ƌ Ɛ Ğ Đ ƚ ŝ Ž Ŷ  ŝ ŵ Ɖ ƌ Ž ǀ Ğ ŵ Ğ Ŷ ƚ Ɛ ϭϲ ϰϵ ƚ Ś  ^ ƚ ƌ Ğ Ğ ƚ  ͬ   Ž Ž Ŭ   ǀ Ğ  / ŵ Ɖ ƌ Ž ǀ Ğ ŵ Ğ Ŷ ƚ Ɛ Ϯ͘Ϭ Ϭ  > > Ϯ Ϭ Ϯ ϰ W ϭ ͕ Ϯ Ϭ Ϭ ͕ Ϭ Ϭ Ϭ        ϭ͕Ϯ Ϭ Ϭ ͕ Ϭ Ϭ Ϭ           E Ĩƌ Ž ŵ ͗  : Ă Đ Ŭ ŵ Ă Ŷ   ǀ Ğ Ŷ Ƶ Ğ     ƚ Ž ͗   ŝ ƚ LJ  > ŝ ŵ ŝ ƚ Ɛ ^Ś Ž Ƶ ů Ě Ğ ƌ  ǁ ŝ Ě Ğ Ŷ ŝ Ŷ Ő ͕  Ě ƌ Ă ŝ Ŷ Ă Ő Ğ  ŝ ŵ Ɖ ƌ Ž ǀ Ğ ŵ Ğ Ŷ ƚ Ɛ ͕  Ɖ Ă ǀ Ğ ŵ Ğ Ŷ ƚ  Ž ǀ Ğ ƌ ů Ă LJ ͕  ďŝŬ Ğ  Ă Ŷ Ě  Ɖ Ğ Ě Ğ Ɛ ƚ ƌ ŝ Ă Ŷ  Ă Đ Đ Ž ŵ ŵ Ž Ě Ă ƚ ŝ Ž Ŷ Ɛ ϭϲ t^ ƚ ƌ Ğ Ğ ƚ  / ŵ Ɖ ƌ Ž ǀ Ğ ŵ Ğ Ŷ ƚ Ɛ Ϭ͘ϳ Ϭ  > > Ϯ Ϭ Ϯ ϰ W ϴ Ϭ Ϭ ͕ Ϭ Ϭ Ϭ           ϴϬ Ϭ ͕ Ϭ Ϭ Ϭ              E Ĩƌ Ž ŵ ͗  t Ă ů Ŷ Ƶ ƚ  ^ ƚ ƌ Ğ Ğ ƚ             ƚ Ž ͗   Ě ŵ ŝ ƌ Ă ů ƚ LJ   ǀ Ğ Ŷ Ƶ Ğ ^Ś Ž Ƶ ů Ě Ğ ƌ  ǁ ŝ Ě Ğ Ŷ ŝ Ŷ Ő ͕  Ž ǀ Ğ ƌ ů Ă LJ ͕  Ě ƌ Ă ŝ Ŷ Ă Ő Ğ  ŝ ŵ Ɖ ƌ Ž ǀ Ğ ŵ Ğ Ŷ ƚ Ɛ ͕  Ɛ ŝ Ě Ğ ǁ Ă ů Ŭ Ɛ ϭϲ >Ă ǁ ƌ Ğ Ŷ Đ Ğ Ϭ͘ϰ ϲ  > > Ϯ Ϭ Ϯ ϰ W ϱ Ϭ Ϭ ͕ Ϭ Ϭ Ϭ           ϱϬ Ϭ Ϭ Ϭ Ϭ   E Ĩƌ Ž ŵ ͗  D Ž Ŷ ƌ Ž Ğ                        ƚ Ž ͗  , Ă ƌ ƌ ŝ Ɛ Ž Ŷ ZŽ Ă Ě  ƌ Ğ ď Ƶ ŝ ů Ě ϭϲ tĂ Ɛ Ś ŝ Ŷ Ő ƚ Ž Ŷ  / / Ϭ͘ϭ ϭ  > > Ϯ Ϭ Ϯ ϰ W ϱ Ϭ Ϭ ͕ Ϭ Ϭ Ϭ           ϱϬ Ϭ Ϭ Ϭ Ϭ   E Ĩƌ Ž ŵ ͗  , Ă ƌ ƌ ŝ Ɛ Ž Ŷ                       ƚ Ž ͗  W ŝ Ğ ƌ Đ Ğ ZŽ Ă Ě  ƌ Ğ ď Ƶ ŝ ů Ě ϭϲ DŽ Ŷ ƌ Ž Ğ Ϭ͘ϯ Ϭ  > > Ϯ Ϭ Ϯ ϰ W ϱ Ϭ Ϭ ͕ Ϭ Ϭ Ϭ           ϱϬ Ϭ Ϭ Ϭ Ϭ   E Ĩƌ Ž ŵ ͗  Z Ž Ž Ɛ Ğ ǀ Ğ ů ƚ                    ƚ Ž ͗  Z Ğ Ğ Ě ZŽ Ă Ě  ƌ Ğ ď Ƶ ŝ ů Ě ϭϲ ^Ś Ğ ƌ ŝ Ě Ă Ŷ  ^ ƚ ƌ Ğ Ğ ƚ Ϭ͘Ϯ ϱ  > > Ϯ Ϭ Ϯ ϰ W ϳϬ Ϭ ͕ Ϭ Ϭ Ϭ           ϳϬ Ϭ Ϭ Ϭ Ϭ   E Ĩƌ Ž ŵ ͗  ϭ Ϭ ƚŚ ^ ƚ                            ƚ Ž ͗  ϭ ϱ ƚŚ ^ ƚ ZŽ Ă Ě  ƌ Ğ ď Ƶ ŝ ů Ě ϮϬ Ϯϭ ϮϮ Ϯϯ Ϯϰ Ϯϱ Ϯϲ Ϯϳ Ϯϴ Ϯϵ Ϯϭ Ă Pa g e 3 of 3 Ci t y of Po r t To w n s e n d 20 1 9 Bu d g e t Page 91 of 152 Ci t y of Po r t To w n s e n d 20 1 9 Bu d g e t Page 92 of 152 CITY OF PORT TOWNSEND, WASHINGTON FINANCIAL POLICIES The City Council adopted updated “Finance and Budget Policy Guidelines” in July 16, 2018 (Resolution 18-034). These policy guidelines lay the framework for fund reserves, revenue policies, transfers and inter-fund loans, general expenditure policies, debt management, grant administration and budget and long-range forecasting. Fund Reserve Policy Fund Reserve targets were adopted to allow the City to maintain sufficient working capital and to weather emergencies or unexpected revenue declines. The 2019 budget was developed to ensure that ending fund balance amounts would align with the City Council Fund Balance Reserve Policy. The supplemental budget for 2018 includes a transfer of $9,000 from the General Fund to the Contingency Fund to bring the reserve balance to 2% of General Fund Operating Revenues to meets its reserve target. The financial policies were changed to update the fund target for Public Works Administration from 2-3% of expenditures to “Sufficient to Meet Obligations”. This is an internal service fund, providing administrative services to Streets, the Water/Sewer utility, the Storm utility and the Equipment Rental & Replacement funds. An internal service fund would typically not have a substantial fund reserve. The City Council ratified staff’s recommendation to change the fund reserve requirement to “sufficient to meet obligations”. The Stormwater Operations Fund is projected to fall below the reserve balance of 60 Days of Operating Expenses in 2019. This is primarily due to funding storm capital project investments. The city is currently working on a rate study to determine adequate funding levels to bring the Stormwater Operations Reserve balance back in to compliance with the fund balance reserve policies. Along with Fund Reserve requirements, our financial policies provide that, in general, operating revenues should cover operating expenditures. For 2019, the Street Fund, Library Fund, Water/Sewer Operations Funds, and Stormwater Operations Funds have expenditures in excess of revenues. For both the Street and Library Funds, the City has specific strategic goals that outline the need to find permanent sources of funding for these funds. A pavement analysis and street inventory is being completed in 2018 to better inform the needs for the Street Fund. This analysis will provide data that will help our Public Works department prioritize City street maintenance and improvements, as well as forecast needed funding levels. The Library is also working on its own analysis of Library level of service needs. The Berk Consulting firm City of Port Townsend 2019 Budget Page 93 of 152 was hired in mid 2018 to perform this work and the results of their study will be reviewed in at the end of 2018 or in early 2019. The Water/Sewer and Stormwater Operations Funds are both Enterprise funds. Rate payers fund the cost of these operating expenses. As mentioned above, the Stormwater Fund is completing a rate study that will provide projected rate changes needed to bring the operating fund into compliance and to forecast long term capital needs. The Water/Sewer Fund will also undergo a rate study update in 2019. With the completion of several large capital projects, the update of the Water System plan in 2018 and changes to plant operations with the new treatment plant, an update of the rate model is prudent. Equipment Rental & Replacement (ERR) During 2018, considerable work was done to analyze the Equipment Rental & Replacement (ERR) fund. As part of this work, the Finance staff has developed policy framework and recommendation for the establishment of additional funds to adequately track both the equipment maintenance and operating costs for both the fleet component of the fund and the information technology component of the fund. The City Council is slated to review these policies and ordinances establishing the new funds in November 2018. The 2018 supplemental budget includes transfers from the General Fund to fund some shortfalls in the information technology portion of the fund prior to the establishment of the new funds. The new fund structure, if adopted, is slated to be implemented as of January 1, 2019. Once policy framework is adopted, Fund Balance Reserve Summary: The following reserve balance scorecard shows the fund balance reserve results: City of Port Townsend 2019 Budget Page 94 of 152 COUNCIL POLICY FUND TARGET 2015 Actual Fund 2016 Actual Fund 2017 Actual Fund 2018 Estimated Fund 2019 Budget Fund FUNDS (Policy Adopted July, 2018)Reserve % Reserve % Reserve % Reserve % Reserve % General Operating Fund General Fund 8 - 15% of operating revenue 13.0% 17.2% 20.4% 16.1% 16.2% Special Revenue Funds Contingency Fund No less than 2% of operating revenue 2.0% 1.5% 2.1% 2.1% 2.1% Street Fund 2 - 3% of expenditures 28.9% 42.2% 47.1% 22.3% 17.9% Library Fund 5 - 8% of property tax revenue 15.1% 20.1% 23.2% 18.4% 12.1% Real Estate Excise Tax Fund Sufficient to meet obligations Meets Meets Meets Meets Meets Lodging Tax Fund Sufficient to meet obligations Meets Meets Meets Meets Meets Fire & EMS Services Fund Sufficient to meet obligations Meets Meets Meets Meets Meets Affordable Housing Trust Fund Sufficient to meet obligations Meets Meets Meets Meets Meets Community Development Block Grant Fund Sufficient to meet obligations Meets Meets Meets Meets Meets Community Services Fund 2 - 3% of expenditures 7.7% 7.5% 4.6% 4.9% 5.6% General Obligation Debt Service Fund G.O. Debt Service Fund Sufficient to meet obligations Meets Meets Meets Meets Meets Capital Projects Funds General Capital Improvement Funds Sufficient to meet obligations Meets Meets Meets Meets Meets Street Vacation Fund Sufficient to meet obligations Meets Meets Meets Meets Meets Street Capital Improvement Fund Sufficient to meet obligations Meets Meets Meets Meets Meets 2015 Bond Fund Sufficient to meet obligations Meets Meets Meets Meets Meets 2017 Bond Fund Sufficient to meet obligations N/A N/A Meets Meets Meets Enterprise Funds System Development Charges Fund Sufficient to meet obligations Meets Meets Meets Meets Meets Water Sewer Operating Fund 60 days of operating expenses 186 247 226 100 105 Water Sewer Capital Fund Sufficient to meet obligations Meets Meets Meets Meets Meets Stormwater Operating Fund 60 days of operating expenses 76 45 137 66 50 Stormwater Capital Fund Sufficient to meet obligations Meets Meets Meets Meets Meets Transmission Line Replacement Fund Sufficient to meet obligations Meets Meets Meets Meets Meets 78 Water Sewer Revenue Bond Fund Sufficient to meet obligations Meets Meets Meets Meets N/A Utility Debt Reserve Fund Sufficient to meet obligations Meets Meets Meets Meets Meets Internal Service Funds Public Works Admin Fund Sufficient to meet obligations Meets Meets Meets Meets Meets Equipment Rental & Replacement Fund Sufficient to meet obligations Meets Meets Engineering Service Fund Sufficient to meet obligations Meets Meets Meets Meets Meets Self-Insurance Unemployment Fund Sufficient to meet obligations Meets Meets Meets Meets Meets Fiduciary Funds Firemen's Pension Fund Sufficient to meet obligations Meets Meets Meets Meets Meets Refundable Deposits Fund Sufficient to meet obligations Meets Meets Meets Meets Meets Agency Fund Sufficient to meet obligations Meets Meets Meets Meets Meets Memorial Fund Sufficient to meet obligations Meets Meets Meets Meets Meets Golf Course Fund Sufficient to meet obligations Meets Meets Meets Meets Meets 2015 Actual 2016 Actual 2017 Actual Fund 2018 Estimated 2019 Budget Annual Debt Service as % of Revenue Less than 15%8.5% 10.1% 11.0% 10.4% 10.6% 2015 Actual 2016 Actual 2017 Actual Fund 2018 Estimated 2019 Budget Operating revenues 50% or more than pool operating expenses 45.9% 41.6% 43.2% 43.6% 38.5% Parks & Pool Fees GO Debt Service as a % of General Government Revenue City of Port Townsend Ending Fund Balance Scorecard STATUS OF PERFORMANCE COMPARED TO FINANCIAL POLICIES under review City of Port Townsend 2019 Budget Page 95 of 152 OVERHEAD INDIRECT COST RECOVERY POLICY The City adopted a policy that allocates the indirect overhead costs, from the General Fund to other funds. Consistent with the prior three years, City staff used the cost recovery model developed by FCS Consultants to identify city-wide overhead costs, which include Council, City Manager, City Clerk/Human Resources, City Attorney, Finance and Facility related overhead costs. The model uses actual costs from two years previous; that is, the 2018 allocation was based on 2016 historical costs and the 2019 budget allocation was based on 2017 historical costs and activities. Allocations to funds are based on pre-determined allocation factors. The chart below represents the City-wide overhead costs for 2019 and the associated allocation factors that determine how much each receiving fund is charged for overhead services. Funds that had increases in allocation statistics, such as an increase in full time equivalents (staff positions), increase in total expenditures, or an increase in department related council agenda bills will receive a greater share of the overhead allocation. Conversely, funds that use less administrative resources receive a smaller portion of allocated costs. Allocation statistics are reviewed each year for appropriateness and updated as necessary. Total Citywide Allocable Costs Allocation Factor 011 Mayor & Council 141,009$ Council Bills 012 City Manager 354,030 50/50 Split: Actual Expenditures & FTEs 013 City Attorney - Civil 231,478 33/33/33 Split: Actual Expenditures, FTEs, & Council Bills 041 Finance - General 315,305 Actual Expenditures 041 Finance - AP 102,178 AP Invoices 015 Payroll 145,910 FTEs 015 Human Resources 202,670 FTEs 080 City Clerk - Council Support 127,129 Council Bills 080 City Clerk - General Other 48,432 Vehicle Insurance 080 City Clerk - Records Management 57,975 Records Count FD 199 Community Services - City Facilities 469,166 Square Feet by Building Liability Insurance 286,475 FTEs Property Insurance 57,943 Value of Insured Property Vehicle Insurance 2,297 # of Vehicles TOTAL 2,541,997$ Budget 2019 - Indirect Cost Pools and Allocation Factors Indirect cost pools City of Port Townsend 2019 Budget Page 96 of 152 A comparison of the 2019 and 2018 overhead allocation charged to funds is shown on the following table: For 2019, the overhead allocation recovered by the General Fund decreased by $14,753 largely due to a reduction in overhead charges to the Water/Sewer capital project funds which had decreased dollar amount of capital projects in 2017 as compared to 2016. The General Fund transfers funds to support the overhead allocation for both the Community Services Fund and the General and Street Capital Project Funds. The net result of the changes in the overhead allocation received by the General Fund in 2019 is $96,766 less than the amount received in 2018. Adopted Cost Recovery Budget 2018 2019 Proposed Overhead Allocation Charges Increase / (Decrease) FD 110 Street 45,642$ 45,743$ 101$ FD 120 Library 214,972$ 232,915$ 17,943$ FD 140 Public Works Administration 58,810$ 52,547$ (6,263)$ FD 150 Lodging Tax 12,838$ 9,908$ (2,930)$ FD 199 Community Services 225,017$ 246,324$ 21,308$ FD 301 General CIP Projects 25,841$ 29,331$ 3,490$ FD 305 CIP Street 39,489$ 96,704$ 57,215$ FD 411 Water Sewer Fund (excl. Utility Billing)275,370$ 327,983$ 52,613$ FD 411 Finance - Utility Billing 55,294$ 38,952$ (16,342)$ FD 412 Storm Fund 50,800$ 52,612$ 1,812$ FD 415 Water Sewer CIP 276,590$ 96,379$ (180,211)$ FD 417 1956 Trans Line Replacement 2,304$ 10,702$ 8,398$ FD 500 Equipment Rental - Fleet 44,269$ 45,992$ 1,722$ FD 500 Equipment Rental - IT 27,129$ 30,259$ 3,130$ FD 555 Engineering Services 84,211$ 105,222$ 21,011$ FD 610 Firemen's Pension and Relief 1,414$ 1,852$ 439$ FD 623 Golf Course 5,419$ 7,229$ 1,811$ Total Overhead Charged to Funds 1,445,408$ 1,430,655$ (14,753)$ Total Calculated Overhead 2,218,983$ 2,434,337$ 215,354$ City Department Funds Charged with Overhead / Indirect Costs City of Port Townsend 2019 Budget Page 97 of 152 City of Port Townsend 2019 Budget Page 98 of 152 City of Port Townsend 2019 Budget Page 99 of 152 City of Port Townsend 2019 Budget Page 100 of 152 City of Port Townsend Comprehensive Financial Management Policy Guidelines Adopted July 16, 2018 City of Port Townsend 2019 Budget Page 101 of 152 Comprehensive Financial Management Policies Index I. FINANCIAL POLICY GUIDELINES .................................................................................. 3 II. ORGANIZATION ................................................................................................................ 3 III. ACCOUNTING, AUDITING AND FINANCIAL REPORTING ..................................... 4 IV. FUND STRUCUTURE & FUND RESERVE GUIDELINES ........................................... 6 V. REVENUE POLICIES ......................................................................................................... 9 VI. OVERHEAD COST RECOVERY (COST ALLOCATION) .......................................... 10 VII. GENERAL BUDGET POLICIES ................................................................................... 11 VIII. FINANCIAL PLANNING POLICIES .......................................................................... 13 IX. ENTERPRISE FUNDS ..................................................................................................... 13 X. CAPITAL INVESTMENT PROGRAM PLAN POLICIES .............................................. 13 XI. DEBT MANAGEMENT POLICY ................................................................................... 14 XII. PURCHASING POLICY ................................................................................................ 15 XIII. GRANTS MANAGEMENT POLICY .......................................................................... 16 City of Port Townsend 2019 Budget Page 102 of 152 I. FINANCIAL POLICY GUIDELINES The financial policies outlined in this document have been developed in accordance with the Government Finance Officers Association’s “Best Practices”. These policy guidelines are intended to aid the City Council and City management in financial decision making. These policy guidelines also provide a means to test short term financial and budget decisions to help ensure the City is able to meet its immediate and long term financial service objectives and obligations. The City of Port Townsend is accountable to its citizens for the use of public funds. Municipal resources must be wisely used to ensure adequate funding for services, public facilities and infrastructure needed to meet the community’s present and future needs. These policies are designed to help safeguard the fiscal stability required to achieve the City’s goals and objectives. The City’s Comprehensive Financial Policies have the following objectives: • To guide the City Council and management policy decisions that have significant financial impact. • To set forth operating principles which minimize the cost of government and financial risk to the City. • To employ balanced, consistent and fair revenue policies that provide adequate funding for desired programs. • To promote sound financial management by providing accurate and timely information on the City’s financial condition. • To protect the City’s credit rating and provide for adequate resources to meet the provision of the City’s debt obligations for all municipal debt. • To ensure the legal use of financial resources through an effective system of internal controls. II. ORGANIZATION The City provides municipal services for its citizens, including protection of life and property, public health and welfare, and improved quality of life. The City Council deems it a high priority to deliver municipal services in the manner consistent for all citizens, and with maximum efficiency and financial prudence. The Council, as the legislative and governing body, sets the City’s Financial and Budget Policy Guidelines, and through its Finance and Budget Committee, monitors and reviews the City’s overall financial performance. The City Manager, as the City’s Chief Executive Officer and Chief Budget Officer, is responsible to the Council for managing City operations and program services, and preparation of the City’s Annual Budget consistent with established Financial and Budget Policy Guidelines. City of Port Townsend 2019 Budget Page 103 of 152 The Director of Finance and Administrative Services, as the City’s Chief Financial Officer and Chief Auditing Officer, is responsible to the City Manager for the preparation of accurate and timely financial and budget reporting. Additional responsibilities include human resource and information technology administration, general accounting, business license/tax administration and utility billing operations, grant, federal & state funding compliance, purchasing administration, as well as policy advice to the City Manager and Council. The Department Heads are responsible to the City Manager for department operations budget observance, capital project management, and grants administration. Department Heads monitor related revenue performance and expenditure control with the assistance of the Finance Department. The City must prioritize its services and, should revenues become constrained, the following services are considered priorities in the following general order: 1. Public Life, Health and Safety: Police, fire, emergency medical services; building inspections; and traffic control; water, sewer, and storm drainage service and streets infrastructure maintenance. 2. Legal Mandates: Accounting/auditing/financial reporting; land-use planning; required staff certifications and training. 3. City Facilities and Property: maintenance of parks, buildings, public rights of way, and City equipment (including information technology equipment); 4. Council and community goals, both annual and long-range, including strategic plan goals. III. ACCOUNTING, AUDITING AND FINANCIAL REPORTING The City will maintain a system of financial monitoring, control and reporting for all operations and funds to provide effective means of ensuring that overall City goals and objectives are met. Accounting Records and Reporting – The City will maintain its accounting records in accordance with state and federal regulations. Budgeting, accounting and reporting activities will conform to the Budgeting, Accounting and Reporting System (BARS) for Governments as prescribed by the Washington State Auditor. The City maintains its accounting and budgeting records on a cash basis and adheres to the cash basis BARS manual. Capital Assets – As a cash basis entity, the City records and reports only inflows and outflows of cash. When a capital asset is purchased the entire expenditure is recorded when the cash is expended and depreciation is not recorded. The City considers capital assets to be real and intangible assets above $5,000 in value that have an anticipated life of one year or more. Capital assets are tracked by the Finance Department as a fixed asset inventory . Items that are no longer needed or no longer functional will be disposed according to the City surplus policy and state law. City of Port Townsend 2019 Budget Page 104 of 152 Capital assets that are purchased with grant funds may be subject to additional compliance requirements. The department obtaining the grant is responsible for understanding any compliance requirements related to acquiring, inventorying, tracking and disposing of assets obtained through these types of funds. Small and Attractive Assets - The City identifies small and attractive assets as items with a cost greater than $300 but less than $5,000. These items have a life expectancy of more than one year AND are not likely to be immediately missed upon disappearance. These items are generally mobile in nature and may be easily transported from the workplace. Some exceptions to the $300 minimum include tablets, phones, personal computers and other lower cost items that have ongoing maintenance or service costs associated with them. Department Heads are accountable for the security of these items and are responsible for following the Small and Attractive Assets Policy and Procedures that have been adopted by Council. The Finance and Administrative Services Director has oversight responsibility for this policy and the associated inventory of these items. Auditing – The State Auditor will perform the City’s financial, federal single audit and accountability/compliance audits in accordance with state and federal laws. Results of the audit will be provided to the Council in a timely manner. Cash Management – The Finance & Administrative Services Director will ensure that cash management systems are developed to ensure accurate and timely accounting for all cash and security of all cash assets. Careful financial control of the City’s daily operations is an important part of the City’s overall fiscal management practices. Achieving adequate cash management and investment control requires sound financial planning to ensure that sufficient revenues are available to meet the current expenditures of any operating period. The City’s cash management and investment guidelines are as follows: • The City will maintain a cash management program, which includes internal control practices for collection of accounts receivable, disbursement of funds, and prudent investment of its available cash. • The Finance & Administrative Services Director (Finance Director) serves as the investment officer of the City of Port Townsend. The Finance Director is authorized to oversee the investment program and to develop operating procedures to administer the program. The Finance Director may delegate the authority to conduct investment transactions and manage the operation of the investment portfolio to one or more subordinates as outlined in the investment program operating procedures. All participants in the City’s investment process shall act responsibly as custodians of the public trust. City of Port Townsend 2019 Budget Page 105 of 152 • As permitted by law and City ordinances and to maximize the effective investment of assets, all funds needed for general obligations may be pooled into one account for investment purposes. The income derived from this account will be distributed to the various funds based on their average fund balances on a periodic basis. See Appendix A for Full Investment Policy. IV. FUND STRUCUTURE & FUND RESERVE GUIDELINES The City’s accounting and budgeting systems are organized and operated on a fund basis. Funds are accounting entities used to record revenues and expenditures. By definition, balanced funds mean that total revenues equal total expenditures. The budgeted funds are grouped into categories: General, Special Revenue, Debt Service, Capital Projects, Enterprise, and Internal Service. The following provides a brief description of the fund types and reserve guidelines for each fund. The numbers in parentheses represent the BARS manual fund series numbering scheme. GENERAL FUND (010) -- This is the primary operating fund or current expense fund of the City. To maintain the City’s credit rating and meet seasonal cash flow, the budget shall provide for an anticipated undesignated fund balance between 8% and 15% of estimated annual revenues for general government fund types. The fund balance shall be exclusive of all reserves not anticipated to be readily available for use in emergencies and contingencies. Should the fund balance fall below 8% of revenues, a plan for expenditure reductions and/or revenue increases shall be submitted by the City Manager to the Council. If, at the end of a fiscal year, the fund balance falls below 8%, then the City shall rebuild the balance within a period not to exceed three fiscal years. GENERAL FUND COUNCIL RESERVE (Included in the General Fund) – In addition to the Fund balance and the Contingency Fund, the budget for the General Fund shall provide for a “Council Reserve” equivalent to approximately 1% of estimated operating revenues in the General Fund (010). Only the General Fund shall maintain a “Council Reserve.” The Council Reserve is established to provide for non-recurring community requests or unanticipated needs deemed necessary by Council. The Council Reserve shall be suspended during times of significant economic downturn, especially during years when the General Fund ending fund balance falls below 5%. The Council Reserve is a budgeted appropriation expected to be specifically allocated at the Council’s discretion. SPECIAL REVENUE FUNDS (101-199) -- These funds account for revenues derived from special taxes, grants or other restricted sources designed to finance particular activities. Apart from any unrestricted General Fund contributions to a Special Revenue Fund, the unexpended ending fund balances carry over year to year and should retain City of Port Townsend 2019 Budget Page 106 of 152 enough revenue to cover operating cash flow and anticipated major project or program obligations of the fund. Of these funds, the Street, Library, and Community Services funds are of an operations nature. The Street and Community Services Funds reserve balance will be equivalent to 2-3% of fund expenditures. The Library Fund reserve is set at 5-8% of Library property tax revenue. Other Special Revenue Funds are more cyclical or project related and only need retained ending fund balances or transfers in to cover anticipated obligations: Drug Enforcement, Lodging Tax, Fire/EMS, Affordable Housing, and CDBG Grants. CONTINGENCY (102) – While classified as a Special Revenue Fund, the City’s Contingency Fund is more of a strategic reserve to meet emergency conditions or to help maintain essential services during periods of economic downturn. Each fund should retain enough in its own Ending Fund Balance Reserves to offset minor non-recurring or unanticipated expenses during the budget year. The City’s Contingency Fund is intended for major events and should be maintained at no less than 2% of the General Fund annual operating revenues. If the contingency falls below 2% of operating revenue, the City will initiate a plan that will restore the balance to the required level over a three-year period. DEBT SERVICES FUND (200) – These funds are used to pay general government debt. The City shall retain or transfer in funds sufficient to cover the annual debt service obligations, and retain such “coverage” amounts to comply with bond covenants or other loan restrictions. CAPITAL PROJECTS FUNDS (300) – These funds are established for the acquisition or construction of general government (non-utility) capital improvements. Ending Fund Balance Reserves should be maintained at levels sufficient to cover anticipated annual expenditures with transfers in from supporting funds (General, REET, etc.) to cover project needs. ENTERPRISE FUNDS (400) – These funds are the proprietary or “business-like” funds for operations providing services to the general public supported primarily through user’s fees (Water, Sewer, Stormwater, and Utility Revenue Bond). The Ending Fund Balances of these funds should be equal to or greater than 60 days of operating expenditures and any additional amounts needed to build towards future project cash or debt payment needs. To the extent that the reserved Fund Balance and operating cash flow are not adequate to fund needed utility system improvements, additional rate increases or surcharges may be adopted by Council. Included in the Enterprise funds are Debt Service Reserve Funds, Utility Capital Project Funds and System Development Fund. Revenue bonds may be issued by the Enterprise Funds. Investors may require additional lending requirements or covenants. The ending fund balance of the Enterprise Funds should include a reserve to cover any additional covenant requirements City of Port Townsend 2019 Budget Page 107 of 152 INTERNAL SERVICE FUNDS (500) – These funds are also internal “business-like” funds for operations providing services to other City departments (funds) on a direct cost- reimbursement basis (e.g. Equipment Rental including Information Technology services and equipment, Public Works Administration and internal Engineering Services). Fund balances should break even, after set aside of funds for future capital equipment replacements. FIDUCIARY FUNDS (600) – These funds account for assets held by the City as a trustee or as an agent on behalf of others. Ending Fund Balances and any transfers in should be maintained consistent with fund restrictions. ENDING FUND BALANCE, RESERVES, CONTINGENCY SUMMARY The following is a summary of the reserves guidelines. Guidelines will be reviewed annually as a part of the Budget process: • General Fund ........................................... 8-15% of operating revenue • Library ..................................................... 5-8% of property tax • Street ........................................................ 2-3% of expenditures • Community Services ............................... 2-3% of expenditures • Other Special Revenue Funds ................. Sufficient to meet obligations • Contingency ............................................. No less than 2% of operating revenue • Debt Service ............................................ Sufficient to meet obligations • General Capital ........................................ Sufficient to meet obligations • Enterprise Funds ...................................... 60 days of operating expenditures • System Development Charges Fund (Enterprise) ....Sufficient to meet obligations • Internal Service ........................................ Sufficient to meet obligations • Fiduciary Funds ....................................... Sufficient to meet obligations The undesignated General Fund Balance (the balance not tied to a known project) will be maintained at a level that provides the City with sufficient working capital and a comfortable margin of safety to address emergencies and unexpected declines in revenue without borrowing. The City should not use the undesignated General Fund Balance to finance recurring operating expenditures. Annual General Fund revenues should be equal to or greater than annual regular operating expenditures. Reserves above the target can be used for new expenditures, with emphasis placed on one time uses that achieve future operating cost reductions. General Fund revenues will be used for general government, street and community service programs only. General Fund revenue for other purposes will require approval by the City Council. General Fund revenues will not be used to subsidize utility or enterprise operations, which will be self-supporting through user rates. City of Port Townsend 2019 Budget Page 108 of 152 V. REVENUE POLICIES General Revenue Policies - The City will strive to maintain a diversified and stable revenue system to shelter the government from short-run fluctuations in any one revenue source and ensure its ability to provide ongoing service. Restricted revenue shall only be used for the purposes legally permissible and in a fiscally responsible manner. Programs and services funded by restricted revenue will be clearly designated as such. One-time revenues shall support one-time expenditures. County, state or federal funding will be used to finance only those capital improvements that are consistent with the capital improvement plan and local government priorities, and whose operation and maintenance costs have been included in operating budget forecasts. Enterprise Fund Revenue Policies – Enterprise funds will be operated in a manner that maintains a minimum ending fund balance that is not less than 60 days of operating expenditures. Utilities will be self-supporting through user rates and charges. Utility user charges for each of the City utilities will be based on cost of service (i.e., set to full support the total direct, indirect, and capital costs) and established so that the operating revenues of each utility are at least equal to its operating expenditures and annual debt service obligations. The user rates of a utility shall be designated so that a portion covers replacement of the utility’s facilities. The Utility will conduct a study of its user rates no less than every 5 years to ensure rates are adequate to fund operations and meet future needs. Fund balances may be used to temporarily offset rate increases, after sufficient funds have been accumulated for identified capital improvement needs or alternative funding for projects has been secured. Fees and Charges (Non-Utility) – All fees for licenses, permit, fines, and other miscellaneous charges shall be set to recover the City’s expense in providing the attendant service. Average cost or actual cost methodology may be used. These fees will be reviewed periodically and will be incorporated into the budget process for possible action by Council. Fees and charges for services will generally be set to recover the actual cost of service delivery. Fees that are set lower than the cost of service delivery will be reviewed at least every other year to determine if those fees are still appropriate based on City finances and the community needs. City of Port Townsend 2019 Budget Page 109 of 152 Where direct beneficiaries of a city program or services can be identified, fees will be established to recover the costs of that program or service. Fees will also be set in a manner that protects tax payers from subsidizing special service users. A fee shall be charged for any service that benefits limited interests within the community, except for human needs type services to persons with limited ability to pay. Rental fees will be established to recover full cost of use of the property or facility. Fees related to the rental of City properties may be waived only through approval of the City Manager. The waiver of fees will only be provided if the purpose of the rental or its associated event will benefit the community at large. Some services provide greater benefit to the community. When a greater community benefit is identified, the Council may choose to subsidize, either whole or in part, such services. Park and Pool Fees – The Pool division will strive to recover 50% of Pool costs by generating revenues through special programs, fees, charges, donations and/or designated use of City-operated facilities. Through a volunteer recruitment program, the Parks will seek to minimize the subsidy required for partial and minimum fee support programs. Solicitation of funds through donations, fund raising events, non-traditional sources, and various other modes will be encouraged by the City through its park and pool user groups. Funds collected for any special purpose shall be earmarked for that purpose. VI. OVERHEAD COST RECOVERY (COST ALLOCATION) As provided in the State Auditor’s Office guidelines, “Cost allocation is a method to determine and assign the cost of central services to the internal-government users of those services. Cost allocation thereby enables local governments to more accurately account for the complete cost of the services it provides to the public—and to better assess the fees it should charge them.” Included in cost allocation are direct costs (not otherwise charged to budget units) and indirect costs. Direct Costs are those costs that can be specifically identified with a particular service or unit if not already charged directly (e.g. facilities, janitorial, etc.) Indirect Costs are costs incurred for common or joint purposes, benefiting more than one unit, not readily assignable to a specific unit (e.g. legal, human resources, administration, clerk, etc.). The term “allocation” implies that there is no overly precise method available for direct charging a cost to a unit, so the City is using the most appropriate method available for doing so. However, a cost allocation plan should be designed and used to provide a reasonable, consistent and equitable means to allocate costs. Inequitable charges result in questionable charges to grant, utilities and restricted funds. For grant purposes, costs that City of Port Townsend 2019 Budget Page 110 of 152 benefit the public at large cannot be included and should follow the OMB A-87 and/or 2CFR Part 200 guidelines. The Council adopted a Cost Allocation Plan in Resolution 14-035 on June 25, 2014. In addition to using the overhead cost recovery model to assess the appropriate amount of overhead to utilize for establishing user fees, the model will be used to apply charges to Departments/Funds for City-wide overhead indirect cost recovery where allowed (Council, City Manager, City Clerk, City Attorney and Finance). The Council may authorize waiver of the overhead cost-recovery in all or part if Council determines doing so will provide a general benefit to the citizens, taxpayers or utility rate payer. If a portion of the overhead cost-recovery is waived, the General Fund must absorb these costs; waived costs may not be absorbed by or reallocated to a Special Revenue or Enterprise Fund. VII. GENERAL BUDGET POLICIES Annual Budget – The City’s annual budget will be developed in accordance with the policies and priorities set forth in the comprehensive plan, the City Council’s strategic plan, City Council goals and priorities, the needs of the community, and federal and state laws. In general, budgeted revenues must meet or exceed budgeted appropriations each year. Current year operating expenses, maintenance costs and direct and indirect costs of services provided will be covered by current year revenues. One-time expenditures may be appropriated if one-time revenues or excess fund balance (in excess of reserve requirements) are available. The City budget appropriations are adopted at the fund level. Department heads are responsible for preparing a budget that reflects realistic expense projections and that adhere to guidelines within this policy document. Expense (Appropriation) Policies – Operating expenditures will be proposed at a level that will be supported by ongoing annual operating revenues. Staffing Budget – Salary and benefit costs are the City’s most significant operating expense. The City will strive to provide a total compensation package that is comparable to other cities and similar type positions within the same labor market or other cities of a similar size with comparable type and quality services in order to recruit and retain high quality staff. The City Manager’s proposed budget will identify staffing levels and provide justification for any increases or decreases in overall City staffing. City of Port Townsend 2019 Budget Page 111 of 152 Union Contract negotiations may impact budget expenditures annually. However, if a collective bargaining agreement is, or will be, under negotiation, a specific amount will not be included in the budget from potential wage adjustments resulting from the negotiation, other than a base COLA adjustment. This is to protect the City from any claims of not “bargaining in good faith”. Funding for unknown contract terms must be considered in balancing ongoing revenues with ongoing expenses. Equipment Replacement & Maintenance - Equipment replacement and maintenance projections will be updated each year. Replacement of items with a cost of $5,000 or more will be reviewed to time such expenditures at stable intervals to preserve cash flow, when possible. Deferment of regular repair and maintenance will not be used to balance the budget. Training and Travel – City employees or others on official City business or training may be required to travel outside the City to conduct their business or training for the City. City employees and officials will be reimbursed for reasonable and customary expenses incurred in the conduct of their business for the City, including food, lodging and travel expenses while away, excluding any expenses for personal entertainment or alcoholic beverages, as provided in the City’s Personnel Policies Manual for business or training travel. Such training or travel shall be as provided either specifically or generally in the annual budget. Training is an investment in maintaining the certifications and skills of the City’s employees. At least 1% of the department’s budgeted salary expense will be allocated for certifications and skills training. The City will also include a targeted amount of 1% of City-wide salaries for organizational development and process improvement. Investments that Forestall Adding Permanent Staff - Since personnel-related expenditures represent the largest portion of the City’s budget, funding of technology or process improvements that increase efficiency and effectiveness of the delivery of City services should receive priority funding. Budget Monitoring- The Finance & Administrative Services Director will maintain a system for monitoring the City's budget performance. This system will provide timely information to Department Heads and the City Manager to ensure accuracy of financial data and compliance with budget appropriations. The Council will receive (at a minimum) quarterly reports regarding fund level revenues and expenditure performance compared to budget. Significant financial issues that need to be addressed between regular monitoring reports will be provided to Council as warranted. The Finance Director will monitor unanticipated needs or emergency expenditures and prepare budget amendments in compliance with State Law. City of Port Townsend 2019 Budget Page 112 of 152 VIII. FINANCIAL PLANNING POLICIES FINANCIAL FORECAST – The City will develop a 5-year Financial Plan and Forecast Model based on these financial policy guidelines and a best estimate of likely revenues and expenditures. The model will be used to test the policies against likely surrounding economic conditions. The model will be used for long-range financial planning and is not a replacement for budgeting. The City’s financial planning will include the current year budget plus five additional years of projected data. The City may elect to extend its planning horizon further if conditions warrant. The long range financial plan operating revenues and expenses will include data for the General Fund, Contingency Fund, Library Fund and Community Services Fund. In addition to ongoing revenues and expenses, this forecast will utilize assumptions that forecast general obligation debt and general fund contributions to capital projects. The long range financial plan should present trends and projections in key financial indicators, such as: • Revenues and expenses per capita including nominal and inflation adjusted data. • Staffing levels per 1,000 population: total and by major department. • Projected annual growth rates of revenues and expenses including personnel costs. The long range financial plan may include comparisons to other cities and benchmarks, recognizing that the data for comparable cities may reflect differences in service delivery, financial structure and financial policies. Comparative information may include: • Comparative revenues and expenses by major type to include: o Total revenues and expenses per capita. o Taxes per capita by tax source. IX. ENTERPRISE FUNDS The Water, Sewer and Stormwater utilities will be managed as self-supporting business enterprises. Each utility will be managed in a professional manner in accordance with applicable laws and standards. The long range financial plan model for each utility will analyze rate revenues, rate structure, operating costs, replacement capital costs, debt service and other utility considerations (special rate programs, paybacks, etc). The City may utilize specialized rate consultants to evaluate the rate and cost structure of the utilities. X. CAPITAL INVESTMENT PROGRAM PLAN POLICIES General Policy Considerations - The major resources for funding capital improvement and capital maintenance programs are revenues, grants and debt. Financing planned City of Port Townsend 2019 Budget Page 113 of 152 capital replacement costs are an ongoing challenge. Preparing for the challenges of infrastructure replacement or enhancements demands a long-term view of replacement needs. In order to plan for these needs the City will develop a six-year Capital Improvement Plan (CIP) for adoption by Council as required by the Washington’s Growth Management Act. The CIP will be consistent with the Capital Facilities Element of the City’s Comprehensive Plan. A capital project over $15,000 with a minimum of a five-year anticipated life will be included in the CIP. XI. DEBT MANAGEMENT POLICY Long Term Debt - The City will manage its long-term debt in a manner designed to utilize its credit to optimize City services while balancing overall debt levels and annual debt service obligations. Long-term debt includes Bonds, Federal or State loans (e.g. PWTF, FHA), or private placement financing. The City shall only use long-term debt for capital projects that cannot be financed out of current revenues. Annual debt payments should not exceed 15% of the total of annual General Government operating revenues plus budgeted transfers from capital funding sources. General Government Funds include the General Fund, Contingency Fund and Special Revenue Funds. Debt financing will generally be limited to one-time capital improvement projects and only under the following circumstances: • When the project’s useful life will exceed the term of the financing; • When project revenue or specific resources as identified will be sufficient to service the debt; • When projects cannot be cash funded. Debt financing will not be considered appropriate for: • Current operating and maintenance expenses (except for issuing short-term instruments such as revenue anticipation notes or tax anticipation notes); and any recurring purpose (except as indicated above). Tax anticipation debt will be retired annually, and bond anticipation notes will be retired within six months of the completion of the project. Short-term debt outstanding at the end of the year will not exceed 5% of net operating revenue (including tax anticipation notes but excluding bond anticipation notes.) The City’s Limited (non-voted) General Obligation (LTGO) Debt Capacity per State Law is 1.5% of total assessed value. The City should seek to retain 5-10% of its LTGO Debt Capacity for unforeseeable catastrophic emergencies. Options for Interim or “Bridge” financing may include: • Bond Anticipation Notes (BANS) • Tax Anticipation Notes (TANS) • Lines of Credit with major financial institutions • Interfund Loans City of Port Townsend 2019 Budget Page 114 of 152 Short Term Debt – Transfers and Interfund Loans – General Fund transfers to other funds are intended as payments for the support of specific programs or services. Amounts not needed to support such specific program or service expenses will remain in the General Fund’s fund balance. For example, the General Fund may make transfers to the Debt Fund to fund annual debt service payments or to the Community Services Fund to support parks or service programs. Interfund loans are temporary in nature. The requirements for interfund loans are as follows: • The Council must approve all interfund loans by resolution. The resolution will include a planned schedule of repayment of the loan principal as well as setting a reasonable rate of interest to be paid to the lending fund. • The borrowing fund must reasonably be able to anticipate sufficient revenue to repay the principal and interest payments as required by the authorizing resolution. • The rate of interest should not be lower than the “opportunity cost” if the funds were otherwise invested, such as the LGIP (Local Government Investment Pool) rate or a bank CD rate for a similar term; not higher than the external rate available to the municipality. • Interest is not required in the following circumstances: o If the borrowing fund has no independent source of revenue other than the lending fund; o The lending fund is the General Fund, which, being unrestricted, can provide interest free loans to other funds. • The term of the interfund loan will not exceed three years. Any interfund loans that are not repaid within three years will be scrutinized for a “permanent diversion” of moneys. (Note: These restrictions and limitations do not apply to those funds which are legally permitted to support one another through appropriations, transfers, advances, etc.) For short-term cash deficits in non-General Fund operating funds during the course of the year, City interfund loans are preferable to outside short-term or private sector lines of credit. XII. PURCHASING POLICY Purchases of goods, services and capital items will be made consistent with the annual budget appropriations, state and federal law, the City’s Purchasing Ordinance and the State Auditor’s requirements. The City’s Purchasing Ordinance will outline the City Manager’s spending and contracting authority. Any purchases or contracts above those authority limits must be authorized in advance by City Council (some exceptions for public emergencies will apply). The City Manager may delegate spending authority (within his/her limits) to Department Heads to facilitate operating efficiency. The City Manager and Department Heads purchase goods and services at a reasonable cost, using an open, fairly documented and competitive process whenever reasonable and City of Port Townsend 2019 Budget Page 115 of 152 possible. The Finance & Administrative Services Director is charged with developing administrative/operating procedures to implement sound purchasing policies. These procedures will be based on guidelines provided in State Law and by the State Auditor’s Office. All purchase made by the City will ultimately be approved by the Council through the voucher approval process. XIII. GRANTS MANAGEMENT POLICY Leveraging City and community resource with external financial assistance can enhance the quality and level of public services, facilities and infrastructure. City Policy is to seek and accept grants and other financial assistance consistent with the City’s strategic plan. External assistance also carries with it the goals and restrictions of the grantor. Grant relationships are partnerships where the goals of both the City and grantor must be in alignment. The benefits, costs and long-term implications of the partnership must be considered prior to formal application. The City’s Grants Management Policy involves the following steps: Search – City department staff and officials are encouraged to actively search out and identify potential grants which may further the City’s vision and goals, within the City’s financial limitations. Pre-Application – Department Directors and staff shall pursue grants within their purchasing authority identified in City Purchasing Policies. The City Manager shall be advised of all grant considerations over a $10,000 total. Formal Application – Formal applications directly by the City, or indirectly by other agencies involving the City, must fall within Departmental Purchasing levels. All grants will seek reimbursement of direct cost departmental and City wide indirect or administrative costs to the maximum extent allowable by the grantor. Grants by other agencies involving the City or by the City involving other grantees must have City Manager, or Council approval beyond the $60,000 Purchasing levels. Award and Contract – Upon formal Notice of Grant Award (NOGA) or informal notification, a written contract must be approved prior to any City commitment, formal or otherwise. All grant contracts must be within the City’s Purchasing levels. Any needed budget amendments for grant match not otherwise within general budget authority shall be adopted prior to formal grant acceptance and contract signing. Accounting and Reporting – City departments shall coordinate with Finance to assure that grants comply with Federal, State and local requirements for timely reimbursements, monitoring of vendors and sub recipients, as well as City Purchasing Policies. Any notification of audit of grant programs or funds should be sent to the Director of Finance and Administrative Services even if the audit is coordinated in another department. City of Port Townsend 2019 Budget Page 116 of 152 Close Out – Multi-year grants shall have periodic accounting reviews not less than at the close of each fiscal year. Upon conclusion of each grant, the Department grant manager shall prepare a grant close-out report in coordination with the City’s Finance Department. A complete grants management file record shall be maintained per City policy, either in the Department, Finance or Clerk’s Office. The City Council Adopted Federal Awards Standards, Procurement Policy and Code of Conduct Policy for all Federal Loans and Grants on July 10, 2017. Standards for federal awards are detailed in Appendix A. APPENDIX A: INVESTMENT POLICY – To the extent possible, funds not needed for operations should be invested in approved investment vehicles. Investments shall be made with judgment and care, under circumstances then prevailing, that persons of prudence, discretion and intelligence in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived. The standard of prudence to be used by investments officials shall be the prudent person standard and shall be applied in the context of managing the overall portfolio. Investment officers acting in accordance with written procedures and the investments policy and exercising due diligence shall be relieved of personal responsibility for an individual’s security’s credit risk of market price changes, provided deviations from expectations are reported in a timely fashion and appropriate action is taken to control adverse developments. The City will strive to maximize the return on its investments, with the primary objective of preserving capital and prudent investment practices, including diversification. Investments will be made in accordance with the following objectives: 1) Legality: Funds of the City will be invested in accordance with the Revised Code of Washington (RCW), the BARS manual, these policies and any applicable administrative procedures. 2) Safety: Investments of the City will be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. To attain this objective, diversification is required in order that potential losses on individual securities do no exceed the income generated by other investments. 3) Liquidity: The City’s investments will remain sufficiently liquid to enable the city to meet all operating requirements that might be reasonably anticipated. ) Yield: The City’s investments will be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the City’s investment risk constraints and cash flow characteristics. City of Port Townsend 2019 Budget Page 117 of 152 The Finance & Administrative Services Director will approve financial institutions to be eligible to conduct investment business with the City, in accordance with Washington State Law. The Finance & Administrative Services Director will periodically furnish the City Manager and Council with a report that shall include the amount of interest earned to date. At least annually, a report summarizing investment activity and rate of return will be provided. APPENDIX B- CITY OF PORT TOWNSEND FEDERAL AWARDS STANDARDS, PROCUREMENT POLICY & CODE OF CONDUCT CITY OF PORT TOWNSEND FEDERAL AWARD STANDARDS PURPOSE Establish and maintain internal controls that provide reasonable assurance that Federal awards are being managed in compliance with all federal regulations and with the terms and conditions of the award. The City of Port Townsend will follow the Uniform Guidance, the Local Agency Guidelines (LAG) distributed by The Washington State Department of Transportation (WSDOT), and the City of Port Townsend’s Comprehensive Financial Management Policy Guidelines. INTERNAL CONTROLS The City of Port Townsend will maintain effective internal control over the Federal award providing reasonable assurance that the City of Port Townsend is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. • Take prompt action when instances of noncompliance are identified including noncompliance identified in audit findings. • Take reasonable measures to safeguard protected personally identifiable information and other information the Federal awarding agency or pass- through entity designates as sensitive. ADVANCE PAYMENTS AND REIMBURSEMENTS Payment methods must minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the City of Port Townsend whether the payment is made by electronic funds transfer, or issuance or redemption of checks, warrants, or payment by other means. • Advanced payments must be limited to the minimum amounts needed and be timed to be in accordance with the actual, immediate cash requirements of the City of Port Townsend to carry out the purpose of the approved program or project. Any advanced payments must be consolidated to cover anticipated cash needs. • The City of Port Townsend shall minimize the time elapsed between receipt of federal aid funds and subsequent payment of incurred costs. City of Port Townsend 2019 Budget Page 118 of 152 ALLOWABLE COSTS Federal awards will meet the following general criteria to be allowable except where otherwise authorized by statute: • Be necessary and reasonable for the performance of the Federal award; • Conform to any limitations or exclusions set forth in these principles or in the Federal award as to types or amount of cost items; • Be consistent with policies and procedures that apply uniformly to both Federally- financed and other activities of the City of Port Townsend; • Be accorded consistent treatment; • Not be included as cost or used to meet cost sharing or matching requirements of any other Federally-financed program in either the current or a prior period; • Be adequately documented. PROCUREMENT When procuring property and services under a Federal award, the City of Port Townsend will follow 2 CFR §200.318 General procurement standards through §200.326 Contract provisions or City of Port Townsend purchasing procedures whichever is more restrictive. The following table outlines procurement requirements when using Federal funds. Procurement Method Goods Services Micro-Purchase - No required quotes. However, must consider price as reasonable, and, to the extent practical, distribute equitably among suppliers. $3,000 or less Must use more restrictive $3,000 federal threshold $3,000 or less Must use more restrictive $3,000 federal threshold Small Purchase Procedures (Informal) - Obtain/ document quotes from a reasonable number of qualified sources (at least three). $3,000 - $40,000 (Single trade); $3,000 - $65,000 (Multi trade); $3,000 - $50,000 (Non-Public Works projects) Must use more restrictive City threshold instead of $150,000 Federal threshold $3,000 - $40,000 (Single trade); $3,000 - $65,000 (Multi trade); $3,000 - $50,000 (Non- Public Works projects) Must use more restrictive City threshold instead of $150,000 Federal threshold City of Port Townsend 2019 Budget Page 119 of 152 Sealed Bids / Competitive Bids (Formal) $40,000 or more (Single trade); $65,000 or more (Multi trade); $50,000 or more (Non-Public Works Projects) Must use more restrictive City threshold instead of $150,000 Federal threshold $40,000 or more (Single trade); $65,000 or more (Multi trade); $50,000 or more (Non-Public Works Projects) Must use more restrictive City threshold instead of $150,000 Federal threshold Competitive proposals Used when conditions are not appropriate for the use of sealed bids. • Must publicize request for proposals soliciting from an adequate number of qualified sources • Maintain written method for conducting technical evaluations • Contract must be awarded to the responsive and responsible firm whose proposal is most advantageous to the program Non-competitive proposals Appropriate only when: • Available only from a single source; or • Public emergency; and • Expressly authorized by awarding or pass- through agency in response to written request from the City of Port Townsend; or • After soliciting a number of sources, competition is deemed inadequate. Contracts for more than the simplified acquisition threshold currently set at $150,000 must address administrative, contractual, or legal remedies in instances where contractors violate or breach contract terms, and provide for such sanctions and penalties as appropriate. Contracts and sub-grants of amounts in excess of $150,000 require that the City of Port Townsend will comply with all applicable standards, orders or regulations issued pursuant to the Clean Air Act and the Federal Water Pollution Control Act. The City of Port Townsend will monitor procurements to avoid duplicative purchases, and exhaust all mandated sources before soliciting new sources. The City will also City of Port Townsend 2019 Budget Page 120 of 152 continue to enter into inter-entity agreements to realize cost savings for shared goods and services when possible. The City will verify and document that vendors are not suspended or debarred from doing business with the Federal government. SINGLE AUDIT ACT The City of Port Townsend, as a recipient of Federal funds, shall adhere to the Federal regulations outlined in 2 CFR §200.501 as well as all applicable Federal and State statutes and regulations. CLOSURE A project agreement end date will be established in accordance with 2 CFR §200.309. Any costs incurred after the project agreement end date are not eligible for Federal reimbursement. City of Port Townsend 2019 Budget Page 121 of 152 CITY OF PORT TOWNSEND CODE OF CONDUCT PURPOSE The purpose of the Code of Conduct is to ensure the efficient, fair and professional administration of federal grant funds in compliance with 2 CFR §200.112, 2 CFR §200.318 and other applicable federal and state standards, regulations, and laws. APPLICATION This Code of Conduct applies to all elected officials, employees or agents of the City of Port Townsend engaged in the award or administration of contracts supported by federal grant funds. REQUIREMENTS No elected official, employee or agent of the City of Port Townsend shall participate in the selection, award or administration of a contract supported by federal grant funds if a conflict of interest, real or apparent, would be involved. Such a conflict would arise when any of the following has a financial or other interest in the firm selected for award: • The City employee, elected official, or agent; or • Any member of their immediate family; or • Their partner; or • An organization which employs, or is about to employ any of the above. The City of Port Townsend's elected officials, employees or agents shall neither solicit nor accept gratuities, favors, or anything of monetary value from contractors, potential contractors or subcontractors. REMEDIES To the extent permitted by federal, state or local laws or regulations, violation of these standards may cause penalties, sanctions or other disciplinary actions (up to and including employment or contract termination) to be taken against the City of Port Townsend's elected officials, employees or agents, or the contractors, potential contractors, subcontractors or their agents. Any potential conflict of interest will be disclosed in writing to the Federal awarding agency or pass-through entity in accordance with applicable Federal awarding agency policy. City of Port Townsend 2019 Budget Page 122 of 152 CITY OF PORT TOWNSEND, WASHINGTON, GENERAL GOVERNMENT DEBT, UTILITY & INTERGOVERNMENTAL DEBT AND INTERFUND LOANS The City issues long-term debt instruments to finance large capital project investments. These debt instruments may include tax-exempt bonds, intergovernmental loan programs and inter-fund loans. State law limits the amount of debt the City may issue. The following is a summary of the types of debt and their associated debt limits: General Government Debt General obligation bonds may be issued through voted or non-voted bonds. Debt capacity is limited to certain percentages of the City’s total assessed property value (AV). Voted bonds require a 60% majority vote to pass. The statutory debt limits are as follows: • General obligation bonds are limited to 2.5% of the City’s current AV. Of this 2.5%, non-voted (councilmanic) debt is limited to 1.5% of the City’s current AV. • General obligation voted bonds can be issued for parks and open space up to 2.5% of the City’s current AV. • General obligation voted bonds can be issued for utility purposes up to 2.5% of the City’s current AV. During 2018, the City issued Limited Tax General Obligation bonds for a total of $834,000 to fund the Homeward Bound/Cherry Street affordable housing project. This bond was a private placement with Kitsap Bank. The term of the bond is 22 years with interest only payments for the first two years and principal and interest payments of $65,610 per year for the final 20 years. The interest rate for this bond is 4.85%. The proceeds from this bond will be used to provide funds to Homeward Bound for a four- plex affordable housing project on Cherry Street. Upon completion of the project, Homeward Bound will serve as property manager and will use cash flow from the rental income of these properties to make payments on its debt with the City, which will help offset the loan payments to Kitsap Bank. Until the housing units begin generating positive cashflow, the City Council has designated a portion of its council reserve as a source of funds for the debt payments to Kitsap Bank. The City’s total non-voted debt will have an outstanding balance of $16,884,000 as of January 1, 2019. Principal payments on the outstanding non-voted debt for 2019 are $710,000, due on December 1, 2019. Currently the City has four outstanding councilmanic bond issues: 1. Series 2010 Limited Tax General Obligation bonds issued for sidewalks, utility and street improvements, and Carnegie Library retrofit. Outstanding balance as of January 1, 2019 - $3,155,000. 2. Series 2012 Limited Tax General Obligation Refunding bond issue, refunded 1999 bonds and a portion of the 2002, 2003 and 2005 general obligation bonds. Outstanding balance as of January 1, 2019 - $2,680,000. City of Port Townsend 2019 Budget Page 123 of 152 3. Series 2017 (Series A & B) Limited Tax General Obligation bonds issued to refund the Series 2008 bonds and to finance road and sidewalk improvements, tourism, infrastructure and waterfront access improvements. Outstanding balance as of January 1, 2019 - $10,215,000. 4. Series 2018 Limited Tax General Obligation bond issued to fund the Homeward Bound/Cherry Street affordable housing project. Outstanding balance as of January 1, 2019 - $834,000 In February 2015, 71.37% of the voters of the City of Port Townsend approved a ballot measure to authorize the City to issue up to $3,600,000 in bonds for the Mountain View Commons energy retrofit and other campus improvements. The bonds were issued in June 2015 in the amount of $3,385,000, with a net interest cost of 3.06%. The annual debt service will be just under $300,000 in 2019. The City will levy property taxes in the amount of $150,000. The remainder of the debt service will be funded by Special Purpose Sales Tax receipts. Outstanding balance as of January 1, 2019 - $3,020,000 General Obligation Line of Credit The City Council authorized the City Manager to execute an agreement with Cashmere Valley Bank to provide a line of credit for $1,500,000 in November 2014. In November 2017, the City Council voted to approve Ordinance 3186, amending Ordinance 3123, as amended by Ordinance 3157, to extend the maturity date of the note an additional eighteen months to May 31, 2019. The line of credit is available to be used for interim cash flow needs for General Government and Street Capital Projects while permanent financing is obtained or while the City awaits reimbursement on grant funded projects. As of the end of 2019, the City intends to have an outstanding balance of $948,000 on the line of credit. The City will require permanent financing prior to May 31, 2019 or, alternatively, the line of credit may be renewed beyond May 31st. The following projects require funding: • Water Street Overlay - $360,000 for cost increases for the Street component of the project • Water Street Overlay - $200,000 for cost increases for the Storm component of the project • Stormwater Masterplan - $130,000 to fund project costs to complete the plan • Stormwater projects - $28,000 to fund various capital projects • Complete Streets - $40,000 for City match • Discovery Road - $80,000 for City match for design • Historic City Hall - $110,000 for elevator replacement Inter-fund Loans The City had one outstanding inter-fund loan outstanding in 2018 for $250,000. In 2017, the City Council authorized an inter-fund loan from the Transmission Line Fund to the General Fund for $250,000 for a term not to exceed 3 years and one month at an interest rate equal to the average LGIP investment interest rate for the loan term. The loan will be repaid no later than December 31, 2019. The loan was made to repay the City of Port Townsend 2019 Budget Page 124 of 152 General Fund for the amount it loaned to Homeward Bound to expedite the purchase, move and delivery of a four-plex building to Cherry Street to be used for affordable housing. Permanent financing for this program is described in the General Government Debt section above. Debt Financial Policies The City Council adopted financial policies allow for annual debt payments on General Government obligations for capital improvements that cannot be funded out of current revenues. These annual debt payments should not exceed 15% of the total of annual General Government operating revenues plus budgeted transfers from capital funding sources. General Government Funds include the General Fund, Contingency Fund and Special Revenue Funds. The following chart and table reflects the current general obligation non-voted and voted bond debt capacity based on the Jefferson County Assessor’s 2018 preliminary assessed values for 2019 taxes; preliminary assessed values increased by approximately 8.1%, consequently, increasing the City’s available debt capacity: 2015 Actual 2016 Actual 2017 Actual Fund 2018 Estimated 2019 Budget Annual Debt Service as % of Revenue Less than 15%8.5% 10.1% 11.0% 10.4% 10.6% GO Debt Service as a % of General Government Revenue General -Non-Voted Currently Obligated, $19,937,000 General -Non-Voted Remaining Allowed, $4,858,602 General -Voted Currently Obligated, $2,835,000 General -Voted Remaining Allowed, $13,695,401 Parks and Open Space -Requires Voter Approval, $41,326,003 Utility -Requires Voter Approval, $41,326,003 2019 Debt Capacity -AV $1,653,040,117 City of Port Townsend 2019 Budget Page 125 of 152 Utility & Intergovernmental Debt The City has funded utility/public works projects with intergovernmental loans from the Public Works Board (Public Works Trust Fund loans used to fund public work projects) and the State Revolving Fund (Department of Ecology low interest loans for water quality projects). These loans are repaid from utility revenues rather than property tax revenues. Loan payments for 2019 for utility debt are budgeted at approximately $1,400,000 for principal and interest combined. As the city draws on these loans the payment schedules and outstanding principle changes. Currently, the outstanding principal on utility debt at the end of 2019 is $16,682,909. In January 2017, the City’s new drinking water treatment facility and reservoir, estimated cost of approximately $24 million, were placed in service. Public Works Trust Fund Loans and Drinking Water State Revolving fund a significant portion of this project. The City’s contribution for this project was approximately $2,500,000 and was 2018 Assessed Valuation (1)1,653,040,117$ General Purposes - Non-Voted Non-voted General Obligation Debt Capacity (1.50% of AV)24,795,602$ Less: Outstanding Non-voted General Obligation Debt (2)(19,009,000)$ Less: Outstanding Line of Credit Balance (3)(948,000)$ Remaining Non-Voted General Obligation Debt Capacity 4,838,602$ Percent of Non-Voted Debt Capacity Remaining 19.51% General Purposes - Requires Voter Approval Voted General Obligation Debt Capacity (1.00% of AV)16,530,401$ Less: Outstanding Voted General Obligation Debt (2,835,000)$ Less: Outstanding Line of Credit Balance (3)-$ Remaining Voted General Obligation Debt Capacity 13,695,401$ Percent of Voted Total Debt Capacity Remaining 82.85% Parks and Open Space Purpose - Requires Voter Approval Voted General Obligation Debt Capacity (2.50% of AV)41,326,003$ Less: Outstanding Voted Debt for Parks -$ Remaining Voted Debt Capacity for Parks 41,326,003$ Utility Purpose - Requires Voter Approval Voted General Obligation Debt Capacity (2.50% of AV)41,326,003$ Less: Outstanding Voted General Obligation Debt for Utility Purpos -$ Remaining Voted Debt Capacity for Utility Purpose 41,326,003$ Notes: (1) Estimate from County Assessor's Preliminary Valuations 2018 Assessments for 2019 Taxes (3) Line of credit for $1,500,000 authorized by Council on 11/3/14; renewed 11/6/17; estimate draws in 2018 with permanent financing secured in 2019 (2) Includes only LTGO Bonds issued through 2018. Other general obligation debts may count against debt capacity. Includes principal payments through 12/31/2019. City of Port Townsend 2019 Budget Page 126 of 152 funded through transfers from the System Development Fund and reserves in the Water/Sewer Operating and Capital funds. Repayment of the loans will come from utility revenues, which include a capital surcharge that is currently being assessed. A utility debt reserve fund has been established to reserve collected surcharge amounts for these future debt payments. At the end of 2019, the debt reserve fund is estimated to have a fund balance of approximately $1,900,000. Utility Line of Credit The City Council authorized the City Manager to execute an agreement with Kitsap Bank to provide a line of credit for $3,000,000 in February 2016. This line of credit is used to fund vendor payments in advance of receiving loan/grant funding from state or federal agencies or to provide interim financing while permanent financing options are reviewed. The line of credit matured in March 2018 and the City subsequently renewed the line of credit through March 1, 2021. As of the end of 2019, the City intends to have an outstanding balance of $1,862,500 on the line of credit. The City will require permanent financing prior to May 31, 2019 or, alternatively, the line of credit may be renewed beyond May 31st. The following projects require funding: • 5mg Reservoir & LTII Treatment Plant - $1,100,000 for City match for the project • Big Quil Diversion Dam - $762,500 for project costs over the original project estimate City of Port Townsend 2019 Budget Page 127 of 152 City of Port Townsend 2019 Budget Page 128 of 152 CITY OF PORT TOWNSEND, WASHINGTON STAFFING AND COMPENSATION SUMMARY The City of Port Townsend employs over 100 individuals. City employees are made up of four groups: • General Government Bargaining Unit - employees who are members of the Local Union No. 589 of the International Brotherhood of Teamsters • Police Department Bargaining Unit - employees who are members of the Local Union No. 589 of the International Brotherhood of Teamsters • Non-represented management, library and “confidential” employees who do not belong to any bargaining group • Part-time and temporary/seasonal employees Compensation and benefits for the two Teamsters bargaining units are negotiated and certain wage changes, pay scales and benefit packages are administered based on the contractual agreements. 2019 Budget Assumptions for General Government Agreement The General Government Agreement covers Public Works, Development Services, Finance and Police Administration employees. The General Government Agreement with the Teamsters defines the pay scales, seniority rates and annual inflationary adjustments to salaries for this group of employees. The proposed 2019 budget was prepared by reviewing each employee’s position and seniority as compared to the wage charts. The contract agreement for these employees expires December 31, 2018 and is currently under negotiation. It is possible the negotiations will not be finalized until early 2019. The city has prepared the 2019 budget with only small inflationary adjustments to base wages, pending the outcome of these negotiations. Full time employees receive a full benefit package that includes health, life, dental and retirement benefits. The current contract calls for employees in this group to contribute 10% of the total cost of the medical benefit costs for themselves and any covered dependents, which is how the city budgeted these costs. Teamster benefit rates are scheduled to increase 3.5% in 2019. Any changes resulting from the finalized agreement will be incorporated into a supplemental budget request in 2019, if necessary. 2019 Budget Assumptions for Police Agreement The Police Agreement with the Teamsters defines the pay scales, compensated hours, seniority rates and cost of living adjustments to salaries for police officers and City of Port Townsend 2019 Budget Page 129 of 152 sergeants. The three-year agreement with the Police bargaining unit was finalized in early 2019 and will expire on December 31, 2021. 2019 Budget assumptions are forecasted with a cost of living increase of 2.0% per the contract agreement. Full-time employees receive a full benefit package that includes health, life, dental and retirement benefits. Employees contribute 10% of the medical benefit costs for themselves and any covered dependents. Teamster benefit rates are scheduled to increase 3.5% in 2019. 2019 Budget Assumptions for Non-represented employees The non-represented employee group is made up of management and professional level staff, part-time pool staff, library staff, and confidential/administrative staff. This group has no formal contractual agreement and benefit and wage increases have historically been dictated by performance and availability of budget dollars. Full time employees receive a full benefit package that includes health, life, dental and retirement benefits. Employees contribute 15% of the total cost of these benefits for themselves and any covered dependents. Medical benefit rates are forecasted to increase 6.0% which is partially offset by a 2.0% discount for well city designation. Employees may choose from two dental plans. The Dental premiums for most employees are not scheduled to increase in 2019 and the premiums on the less used plan will only increase by 1.0%. There are no increases forecasted for Vision benefit rates. A classification scale and compensation policy for non-represented employees was approved by the City Council in 2015 to formalize wages and establish a predictable compensation system. Wage scales for this group of employees are updated each year with inflationary increases and new positions. The 2019 budget includes a cost of living adjustment for non-represented employees of 2.0%. Recruiting Staff, Succession Planning and Best Practices The city continues to strive to foster a healthy City organization through investing in leadership development and training and adopting and implementing best employment practices. Human Resources continues to develop career pathing and city-wide training opportunities for growth for existing employees and to enhance the city’s ability to retain valued employees will continue. The Council financial policies target 1% of salaries for spending on department level training and 1% of salaries for City wide training expenditures. The 2019 budget includes these resources. Department managers work with the Human Resources team to implement training that both ensures regulatory compliance in required certification programs as well as employee education and professional development programs. City of Port Townsend 2019 Budget Page 130 of 152 In 2018, the Human Resource Manager sponsored city-wide training opportunities, all of which were well attended. Training classes included Respectful Workplace Anti-Harassment, Legal Must Knows for Managers, Conflict Resolution Skills Workshop, Hazard Communication Safety Training, First Aid/CPR, and Microsoft software training. In 2019, city-wide training will focus on the new Washington Paid Family Leave Act, Respiratory Safety, Lock Out Tag Out, Bloodborne Pathogens and continue Hazard Communication and First Aid/CPR. Several management personnel have been participating in leadership development and conflict resolution skill training to better lead their teams and work successfully with each other. These training sessions were provided through our insurance authority, WCIA, and through City provided leadership opportunities here at City Hall. A study was completed in 2017 to recommend efficiencies regarding the administration of Business & Occupation taxes and licensing in the Finance Department. City Council passed Ordinance 3187 in November 2017 and was implemented in 2018. We have been able to reduce the volume and time administering Business & Occupation taxes and have allocated staffing resources to more value-added assignments and training opportunities. In mid-August, the city recruited a new accountant to assist in public works and finance. This was not a new position, rather a re-defined position after a staffing vacancy occurred in the Public Works Administration Department. Our new accountant has already implemented new efficiencies in capital reporting, assisted with data analysis in redefining the equipment rental and replacement fund, is providing technical support for the stormwater rate study, among other duties. This position has also been beneficial in assisting with bridging the gap between Finance and Public Works regarding capital finances and reporting needs. The Police Chief recruited a Community Services Officer in May 2018 that was approved in the budget. This position was hired to promote traffic safety, manage parking enforcement and assist with city events. The Police Chief has also requested an additional position to assist in a county-wide effort to coordinate benefits and resources to homeless and other people in need. This position in currently on the unmet needs list until funding can be identified to support it. The 2019 budget includes requests for seasonal help for parks & recreation, Streets/Storm-water/Waste-water. Due to difficulties recruiting seasonal help in 2018, the budgeted wage was adjusted to $15.00 per hour for 2019. These positions are critical to assist with managing fast growing vegetation during the spring and summer months, among other assignments. City Finance and Administration carefully monitor sustainable funding before recommending new staff for authorization. When Department Heads request additional staff with no funding sources, they are deferred for future consideration. The current deferred/unmet needs schedule includes four deferred positions, the coordinator noted City of Port Townsend 2019 Budget Page 131 of 152 above, a volunteer coordinator, communication specialist and additional parks maintenance personnel. A chart below shows the trend by department of authorized staffing changes in the last five years: CITY OF PORT TOWNSEND - AUTHORIZED POSITIONS * Department/Division 2014 2015 2016 2017 2018 2019 2019 vs 2018 2019 vs 2017 General Government City Manager 2.0 2.0 2.0 2.0 2.0 2.0 0.0 0.0 City Attorney 2.7 3.5 3.6 3.6 3.6 3.6 0.0 0.0 Development Service & Planning 6.2 6.8 7.3 8.3 8.3 8.3 0.0 0.0 Finance & Utility Billing (UB)6.1 6.1 6.1 6.4 6.0 6.3 0.3 -0.2 Police Admin & Operations 17.0 17.4 18.0 19.0 19.8 20.0 0.3 1.0 City Clerk/Human Resources 2.9 4.0 3.8 5.0 5.0 5.0 0.0 0.0 PEG TV Studio 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 City Events, Facilities & Restrooms 2.7 2.9 3.5 3.5 3.5 3.5 0.0 0.0 Street 1.8 1.8 2.1 2.1 2.2 2.2 0.0 0.1 Parks Maintenance & Recreation 2.8 2.4 3.5 4.2 4.2 4.5 0.3 0.3 Pool 5.5 4.9 6.9 7.7 7.9 8.3 0.4 0.6 Library 11.0 10.2 9.6 9.6 9.6 9.6 0.0 0.0 Equipment Rental 3.8 3.8 3.9 4.3 4.3 4.0 -0.3 -0.3 Total General Government 64.5 65.8 70.3 75.7 76.4 77.3 1.6 1.6 Public Works & Utilities (excl UB) Public Works Administration 2.1 2.1 2.1 3.2 3.3 4.2 0.8 1.0 Public Works Engineering 6.6 6.7 8.3 5.9 7.8 6.7 -1.1 0.8 Utillities 0.0 0.0 Water Distribution 5.0 5.0 5.0 5.0 5.8 5.5 -0.3 0.5 Water Quality & Resource 3.0 3.0 3.0 3.0 3.8 3.5 -0.3 0.5 Wastewater Collection 2.5 2.5 2.5 2.5 2.7 2.5 -0.2 0.0 Wastewater Treatment 3.3 3.3 3.5 3.5 3.5 3.8 0.3 0.3 Biosolids 2.3 2.3 2.5 2.5 2.5 2.5 0.0 0.0 Stormwater 3.1 3.1 3.5 3.5 3.6 3.3 -0.2 -0.2 Total Public Works & Utilities 27.9 28.0 30.4 29.1 33.0 31.9 -1.1 2.8 TOTAL CITY FTES 92.4 93.8 100.7 104.9 109.3 109.2 0.5 4.3 0.4% 4.1% 2014 2015 2016 2017 2018 2019 Mayor/Council 7.0 7.0 7.0 7.0 7.0 7.0 * Does not include leave payouts Positions not currently counted as FTES Percentage Change City of Port Townsend 2019 Budget Page 132 of 152 With the seasonal help, a total of 109.2 positions are included in the proposed budget for 2019, not including volunteer hours, overtime, or accrued leave payouts. Volunteer hours amount to approximately 3.36 FTEs and assist with police operations, library operations, and parks maintenance. City wide overtime hours are also budgeted at 3,385 hours with most of those hours dedicated to police operations. Below are two tables that outline salary schedules and positions budgeted in 2019 for Elected Officials, Non-represented Employees and Represented Employees positions: City of Port Townsend 2019 Budget Page 133 of 152 City of Port Townsend 2019 Budget Page 134 of 152 Union/Represented Employees Classification Minimum/hr Maximum/hr **Positions Accountant 31.38$ 35.62$ 1.00 Aquatics Program Coordinator 20.52$ 23.31$ 1.00 Aquatics Program Supervisor 25.81$ 29.20$ 1.00 Assistant Planner 27.18$ 30.88$ 0.00 Associate Planner 30.29$ 36.65$ 0.00 Building Inspector 28.47$ 32.34$ 1.00 Code Compliance Officer 28.47$ 32.34$ 1.00 Community Services Officer 21.22$ 24.26$ 1.00 Crew Chief 29.72$ 33.75$ 2.00 Equipment Operator 25.81$ 29.20$ 9.00 Finance Specialist 27.18$ 30.88$ 1.00 Finance Tech II 20.52$ 23.31$ 3.00 Finance Tech III 23.27$ 26.42$ 0.00 GIS Coordinator 29.16$ 33.17$ 1.00 Head Lifeguard I 14.37$ 16.08$ 1.00 Head Lifeguard II 15.57$ 17.46$ 1.00 IT Network Administrator 36.39$ 41.31$ 1.00 IT Technical Support 29.16$ 33.17$ 1.00 Land Use Specialist 27.18$ 30.88$ 1.00 Lead Equipment Operator 27.65$ 31.39$ 5.00 Lead Operator 27.65$ 31.39$ 3.00 Maintenance Worker 21.22$ 24.26$ 9.00 Mechanic 26.40$ 29.98$ 0.00 Permit Tech 20.52$ 23.31$ 2.00 Police Clerk 23.27$ 26.42$ 2.00 Police Officer 31.75$ 36.42$ 11.00 Sergeant 40.80$ 44.63$ 3.00 Reserve Police Officers 15.00$ 0.75 Project Accounting Specialist 27.18$ 30.88$ 1.00 Public Works Inspector 28.47$ 32.34$ 0.00 Public Works/Engineering Support Specialist III 23.27$ 26.42$ 0.00 Public Works/Engineering Support Specialist II 20.52$ 23.31$ 0.00 Purchasing/Contracts Specialist 27.18$ 30.88$ 1.00 Public Works Administrative Assistant 19.90$ 1.00 Seasonal Workers 15.00$ 1.38 Total Union/Represented Employees 67.13 TOTAL CITY POSITIONS (Excluding Elected Officials)109.24 **max pay does not include longevity or other premiums as may be applicable CITY OF PORT TOWNSEND UNION/REPRESENTED EMPLOYEE POSITION CLASSIFICATION SALARY SCHEDULE BUDGET 2019 City of Port Townsend 2019 Budget Page 135 of 152 City of Port Townsend 2019 Budget Page 136 of 152 City ManagerCity Manager Deborah Stinson MayorMayor David Faber Deputy MayorDeputy Mayor Amy Howard Council MemberCouncil Member Ariel Speser Council MemberCouncil Member Michelle Sandoval Council MemberCouncil Member Pamela Adams Council MemberCouncil Member Robert Gray Council MemberCouncil Member Development ServicesDirector Public Works Director Finance & AdministrativeServices Director City Prosecutor/Assistant City AttorneyCity Clerk Parks, Recreation & Community Services Director Library Director City Attorney Citizens of Port Townsend Lead Equipment OperatorWater Distribution Equipment OperatorWater ResourcesEquipment OperatorWater Distribution Civil Engineer (EIT) GIS Coordinator AdministrativeAssistant Assistant City Engineer II Civil Engineer III Project AccountingSpecialist PW Operations Manager Street/Stormwater/Sewer PW Operations ManagerWater Resources PW Operations ManagerWastewater Treatment/Biosolids Crew ChiefWater Distribution Crew ChiefStreets/Stormwater/Sewer City Engineer/DeputyPublic Works Director Maintenance WorkerFacilities Maintenance WorkerFacilities Lead OperatorFacilities Lead OperatorParks Maintenance WorkerParks Aquatics ProgramSupervisor Head Lifeguard II Head Lifeguard Lifeguards(Part Time) Fitness/SwimInstructors(Part Time) Aquatics ProgramCoordinator Library AssistantSubstitutes Library Volunteers Library Associate Library Associate Library Assistant Library Assistant Library Page Library Page Courier Library ManagerPublic & Technical Services Library ManagerYouth Services Human Resources Specialist Payroll/BenefitsAdministrator Finance Specialist Accountant Finance Tech II Finance Tech II Finance Manager IT NetworkAdministrator Human Resources Manager Finance Tech II Public WorksInspector Police Detective Executive Assistant Community ServicesOfficer Executive AssistantDeputy City ClerkLegal Assistant/Deputy Clerk Purchasing/ContractsSpecialist Legal Assistant-Prosecuting Attorney Police Clerk Police Clerk Citizen VolunteersPolice Department Reserve OfficerVolunteers Police Officers (10) Reserve Officers (3) Sergeant Sergeant Sergeant Library Associate Library Associate IT Technical Support Chief of Police Maintenance WorkerParks Equipment OperatorWater Distribution Maintenance WorkerWater Division Maintenance WorkerWater Division Maintenance WorkerStreets/Stormwater/Sewer Maintenance WorkerStreets/Stormwater/Sewer Equipment OperatorFleet Lead OperatorWater Resources Lead Equipment OperatorWastewater Treatment Equipment OperatorWastewater Treatment Equipment OperatorStreets/Stormwater/Sewer Equipment OperatorStreets/Stormwater/Sewer Equipment OperatorStreets/Stormwater/Sewer Equipment OperatorComposting/Biosolids Equipment OperatorComposting/Biosolids Chan Hettle Equipment OperatorWastewater Treatment Lead Equipment OperatorFleetLead Equipment OperatorStreets/Stormwater/Sewer REV 10/2018 Planning Manager Building Official Senior Planner Permit Technician Permit Technician Land Use Specialist Building Inspector Code ComplianceOfficer City of Port Townsend 2019 Budget Page 137 of 152 City of Port Townsend 2019 Budget Page 138 of 152 CITY OF PORT TOWNSEND, WASHINGTON PROPERTY TAX Property valuations are established by the Jefferson County Assessor’s Office in accordance with state law. State law restricts the amount of property taxes the City can levy. Typically, the maximum the City can levy, without the vote of the people, is 101% of the highest lawful levy amount plus the impact of new construction at the previous year’s levy rate plus the impact of new construction at the previous year’s levy rate. In early October, the Jefferson County Assessor provides the City’s assessed value (AV) for use in computing the levy rates for the following tax year. The City’s 2018 AV grew by 8.1% from the 2017 AV. New construction in the City was $19,375,000 for 2018 which adds to the City’s tax base. The total proposed property tax levy for the City General 2018 property tax levy for 2019 taxes is $4,176,303, or approximately $2.53 per $1,000 AV. This levy includes the levy lid lift for the Port Townsend Library authorized by the voters in 2008 as well as the Fire/EMS lid lift approved by the voters in 2011. The Library lid lift provides funds to pay for operating expenses for the Carnegie Library and Pink House. The Fire/EMS lid lift provides funds for fire and emergency rescue services and the receipts from this levy are remitted to Jefferson County Fire District No. 1 (East Jefferson Fire Rescue). In 2010, Port Townsend voters approved an emergency medical service (EMS) levy lid lift to $0.50 per $1,000 of AV. These taxes are remitted to East Jefferson Fire Rescue as part of an Interlocal agreement. The total proposed tax levy for EMS levy lid lift for 2018 is $774,000. In February 2015, the voters of the City of Port Townsend approved a ballot measure to authorize the City to issue up to $3,600,000 in bonds for the Mountain View Commons energy retrofit and other building improvements. The bond will be partially paid with an additional property tax levy for a period not to exceed 15 years. The annual debt payments are approximately $300,000 a year. The City Council intends to use special purpose sales tax revenue to fund 50% of the payment and to levy an additional amount equivalent to the remainder of the bond payment. The levy for the Mountain View Commons bond is $150,000 for 2019. This excess levy amount is approximately $0.09261 per $1,000 of assessed values. The City of Port Townsend records property tax amounts when collected (cash basis accounting recognition system). The following chart reflects the proposed property tax levies and budget allocations by fund. The total amount is slightly higher than the proposed levy amounts listed above to allow for 2019 new construction additions or refunds/changes that may be identified and valued by the County Assessor before the end of the year. City of Port Townsend 2019 Budget Page 139 of 152 Assessed Valuation (000's)1,463,343 1,468,539 1,469,136 1,219,761 1,299,381 1,340,801 1,442,618 1,524,264 1,653,040 Levy Rate - General 1.39077 1.40521 1.42529 1.73897 1.66940 1.63449 1.56531 1.52015 1.42554 Levy Rate - Library Lid Lift 0.64563 0.65371 0.66400 0.80908 0.77421 0.76037 0.72350 0.70654 0.66291 Levy Rate - Fire Lid Lift -0.43117 0.43708 0.53429 0.51206 0.50217 0.48254 0.46682 0.43799 City of PT Total General Levy 2.03640 2.49009 2.52637 3.08234 2.95567 2.89703 2.77135 2.69351 2.52644 Levy Rate - EMS 0.50000 0.50000 0.50000 0.50000 0.50000 0.50000 0.50000 0.49598 0.46823 Excess Levy Rate - Mountain View - - - - - 0.05093 0.10595 0.10595 0.09261 Total City Tax Levy Rate 2.53640 2.99009 3.02637 3.58234 3.45567 3.44796 3.37730 3.29544 3.08728 2011 2012 2013 2014 2015 2016 2017 2018 2019 General 581,741 675,681 682,899 740,000 750,000 770,329 811,808 850,146 884,670 Contingency 21,000 21,000 39,689 4,000 4,000 - - - - Community Services 400,000 400,000 399,242 408,000 412,000 412,000 412,000 412,000 412,000 General Covernment Debt Service 150,000 101,000 99,823 102,000 102,000 102,000 102,000 102,000 102,000 Firemen's Pension 34,000 34,000 34,000 35,000 35,000 39,245 35,245 34,235 34,235 Housing Trust Fund - 10,000 6,235 10,000 10,000 10,000 10,000 10,000 10,000 Library Fund 944,778 960,000 967,644 989,000 1,006,000 1,019,185 1,043,224 1,076,951 1,095,824 EMS Levy 740,000 740,000 673,319 610,000 655,000 675,000 742,000 765,000 774,000 Fire/EMS General Levy 848,039 1,463,319 1,474,972 1,511,598 1,542,721 1,559,047 1,583,723 1,620,276 1,637,574 Mountain View Levy - - - - - 67,012 150,000 150,000 150,000 Total 3,719,558 4,405,000 4,377,823 4,409,598 4,516,721 4,653,818 4,890,000 5,020,608 5,100,303 Note: Budget Allocations are intentionally slightly higher than the Property Tax Levy amounts in the Ordinance. The County Assessor provides guidance on budgeting higher than the levy to account for new construction/refunds and other valuation adjustments. 2018 for 2019 taxes CITY OF PORT TOWNSEND PROPERTY TAX LEVY ASSESSED VALUE & LEVY RATES - BY TAX YEAR BUDGET ALLOCATIONS 2010 for 2011 taxes 2011 for 2012 taxes 2012 for 2013 taxes 2013 for 2014 taxes 2014 for 2015 taxes 2015 for 2016 taxes 2016 for 2017 taxes 2017 for 2018 taxes City of Port Townsend 2019 Budget Page 140 of 152 Ordinance 3210 Page I of2 ORDINANCE NO. 3210 AN ORDINANCE OF THE CITY OF PORT TOWNSEND, WASHINGTON, FIXING AND ADOPTING 2019 PROPERTY TAX LEVIES FOR THE GENERAL LEVY WITH A TOTAL INCREASE OF ONE PERCENT (1.00%) AND FOR THE EMERGENCY MEDICAL SERVICES LEVY AN INCREASE OF ONE PERCENT (1.00%) AND A VOTER -APPROVED TAX LEVY FOR THE MOUNTAIN VIEW COMMONS CAPITAL IMPROVEMENTS OF $150,000 FOR THE UNLIMITED TAX GENERAL OBLIGATION BONDS WHEREAS, as provided by and pursuant to RCW 84. 55.120 and other applicable statutes, the City of Port Townsend has properly given notice ofthe public hearing held on November 5, 2018, to consider the City of Port Townsend's General Fund, Contingency Fund, Library Fund, Fire and Emergency Medical Services Fund, Community Services Fund, Debt Service Fund and Firemen Pension Fund budget for the 2019 calendar year, pursuant to RCW 84.55.120; and WHEREAS, RCW 84.52.070 requires the City to certify to the County the amount of taxes to be levied upon the property within the City by November 30th of each year; and, WHEREAS, at the February 10, 2015 special election, the citizens of Port Townsend approved an additional property tax of $0.1005 per $1,000 of assessed property value for improvements to the Mountain View Commons facility and to repay any interim financing used for those improvements; and, WHEREAS, the City of Port Townsend, after hearing, and after duly considering all relevant evidence and testimony presented, has determined that the City of Port Townsend requires an increase in real property tax revenue from the previous year, in addition to the increase in the value of state -assessed property, in order to discharge the expected expenses and obligations of the City of Port Townsend and in its best interest; NOW THEREFORE, the City Council of the City of Port Townsend do ordain as follows: Section 1. That an increase in the regular property tax levy of 1.0%, in addition to any amount resulting from the addition of new construction and improvements to property and any increase in the value of state -assessed property, and any increase due to re -levying for any refunds made in the previous year, is hereby authorized for the 2019 levy in amounts as follows: 1. 1. There is hereby levied upon all taxable property in the City of Port Townsend, for the year of 2019, the sum of $4,119,669 as a general tax levy, which is a percentage increase of 1.0%, in addition to any amount resulting from the addition of new construction and improvements to property and any increase in the value of state -assessed property, and any increase due to re -levying for any refunds and cancellations/supplementals made in the previous year, resulting in an increase of $40,789 from the previous year. City of Port Townsend 2019 Budget Page 141 of 152 Ordinance 3210 Page 2 of2 1.2. In addition to the above, there is hereby levied upon all taxable property in the City of Port Townsend, for the year of 2019, the sum of $764,092 as an emergency medical services property tax levy, which is a percentage increase of approximately 1.0%, resulting in an increase of $7,565 from the previous year. 1.3. In addition to the above, there is hereby levied upon all taxable property in the City of Port Townsend, for the year of 2019, the sum of $150,000 for the 2015 Unlimited Tax General Obligation Bonds approved by voters in February 2015 for capital improvements at the Mountain View Commons, which is a tax levy at approximately $0.09261 per 1,000 assessed value. Section 2. If any provision of this Ordinance or its application to any person or circumstance is held invalid, the remainder of the ordinance, or the application of the provision to other persons or circumstances, is not affected. Section 3. This Ordinance shall take effect upon its passage, approval, and publication in the form and manner provided by law. ADOPTED by the City Council of the City of Port Townsend, Washington, at a special meeting thereof, held this 13th day of November 2018. Attest: Joanna Sanders, MMC City Clerk Deborah S onSticr Mayor Approved as to form: 1.:l: rr i :. reeriOo City Attorney City of Port Townsend 2019 Budget Page 142 of 152 City of Port Townsend Property Tax Calculation Property Tax Estimate for 2019 Budget General w/Library Lid Lift & Fire Lid Lift General with Library Lid Lift Only General without Library & Fire Lid Lifts EMS Levy Mountain View (MV) TOTAL GENERAL + EMS + MV 2017 for 2018 - AV 1,528,558,379 1,528,558,379 1,528,558,379 1,528,558,379 1,497,191,373 2017 New Construction 21,668,678 21,668,678 21,668,678 21,668,678 2018 Levy Rate 2.6557 2.1953 1.4982 0.4928 0.1002 2018 Actual Levy Amount (Per Ordinance)4,059,328 3,355,648 2,290,158 753,266 150,000 4,962,594 Increase of 1% (Ordinance amount)40,593 33,556 22,902 7,532.66 - 48,126 Banked Capacity - - - - - - 2019 New Const (Est) - $19,375,000 51,700 42,741 29,174 9,589 - 61,289 Refunds (Est) - $5,449 4,681 3,947 2,835 767 - 5,449 Total Calculated Levy Estimate 4,156,303 3,435,892 2,345,068 771,155 150,000 5,077,458 2018 for 2019 AV 1,653,040,117 1,653,040,117 1,653,040,117 1,653,040,117 1,619,766,431 Levy Rate 2.51434 2.07853 1.41864 0.46651 0.09261 Budget on the high side 4,176,303 3,452,292 2,356,468 774,000 150,000 5,100,303 Property Tax Budget General Library FIRE EMS MV Total Budget on the high side 2,356,468 1,095,824 724,011 774,000 150,000 3,280,468 2019 Budget Levy Rate 1.42554 0.66291 0.43799 0.46823 0.09261 3.08727 ALLOCATION General 884,670 Payment to EJFR: Contingency - FIRE 724,011 Community Services 412,000 EMS 774,000 General Covernment Debt Service 102,000 1% increase per contract 913,563 Firemen's Pension 34,235 EJFR 2,411,574 Housing Trust Fund 10,000 Library Fund 1,095,824 EMS Levy 774,000 2018 Base 878,924 Fire/EMS General Levy 1,637,574 1% Increase 8,789 Total 4,950,303 2019 Base 887,713 1/2 New Construction 25,850 MV LEVY 150,000 2019 Cap to EJFR 913,563 TOTAL CITY LEVY - BUDGET 5,100,303 City of Port Townsend 2019 Budget Page 143 of 152 City of Port Townsend 2019 Budget Page 144 of 152 Assessed Valuation (000's)1,463,343 1,468,539 1,469,136 1,219,761 1,299,381 1,340,801 1,442,618 1,524,264 1,653,040 Levy Rate - General 1.39077 1.40521 1.42529 1.73897 1.66940 1.63449 1.56531 1.52015 1.42554 Levy Rate - Library Lid Lift 0.64563 0.65371 0.66400 0.80908 0.77421 0.76037 0.72350 0.70654 0.66291 Levy Rate - Fire Lid Lift -0.43117 0.43708 0.53429 0.51206 0.50217 0.48254 0.46682 0.43799 City of PT Total General Levy 2.03640 2.49009 2.52637 3.08234 2.95567 2.89703 2.77135 2.69351 2.52644 Levy Rate - EMS 0.50000 0.50000 0.50000 0.50000 0.50000 0.50000 0.50000 0.49598 0.46823 Excess Levy Rate - Mountain View - - - - - 0.05093 0.10595 0.10595 0.09261 Total City Tax Levy Rate 2.53640 2.99009 3.02637 3.58234 3.45567 3.44796 3.37730 3.29544 3.08728 2011 2012 2013 2014 2015 2016 2017 2018 2019 General 581,741 675,681 682,899 740,000 750,000 770,329 811,808 850,146 884,670 Contingency 21,000 21,000 39,689 4,000 4,000 - - - - Community Services 400,000 400,000 399,242 408,000 412,000 412,000 412,000 412,000 412,000 General Covernment Debt Service 150,000 101,000 99,823 102,000 102,000 102,000 102,000 102,000 102,000 Firemen's Pension 34,000 34,000 34,000 35,000 35,000 39,245 35,245 34,235 34,235 Housing Trust Fund - 10,000 6,235 10,000 10,000 10,000 10,000 10,000 10,000 Library Fund 944,778 960,000 967,644 989,000 1,006,000 1,019,185 1,043,224 1,076,951 1,095,824 EMS Levy 740,000 740,000 673,319 610,000 655,000 675,000 742,000 765,000 774,000 Fire/EMS General Levy 848,039 1,463,319 1,474,972 1,511,598 1,542,721 1,559,047 1,583,723 1,620,276 1,637,574 Mountain View Levy - - - - - 67,012 150,000 150,000 150,000 Total 3,719,558 4,405,000 4,377,823 4,409,598 4,516,721 4,653,818 4,890,000 5,020,608 5,100,303 Note: Budget Allocations are intentionally slightly higher than the Property Tax Levy amounts in the Ordinance. The County Assessor provides guidance on budgeting higher than the levy to account for new construction/refunds and other valuation adjustments. 2018 for 2019 taxes CITY OF PORT TOWNSEND PROPERTY TAX LEVY ASSESSED VALUE & LEVY RATES - BY TAX YEAR BUDGET ALLOCATIONS 2010 for 2011 taxes 2011 for 2012 taxes 2012 for 2013 taxes 2013 for 2014 taxes 2014 for 2015 taxes 2015 for 2016 taxes 2016 for 2017 taxes 2017 for 2018 taxes City of Port Townsend 2019 Budget Page 145 of 152 City of Port Townsend 2019 Budget Page 146 of 152 2018 City Council Name Public Phone Email Term Expires Michelle Sandoval 360-981-6562 msandoval@cityofpt.us 12/31/21 Pos. 1 Ariel Speser 508-496-0473 aspeser@cityofpt.us 12/31/21 Pos. 2 Deborah Stinson 360-531-1548 dstinson@cityofpt.us 12/31/19 Pos. 3 Robert Gray 360-643-3793 rgray@cityofpt.us 12/31/19 Pos. 4 Pamela Adams 360-774-2145 padams@cityofpt.us 12/31/21 Pos. 5 Amy Howard 360-550-0978 ahoward@cityofpt.us 12/31/19 Pos. 6 David Faber 360-821-9374 dfaber@cityofpt.us 12/31/19 Pos. 7 City of Port Townsend 2019 Budget Page 147 of 152 City of Port Townsend 2019 Budget Page 148 of 152 COUNCIL COMMITTEE ASSIGNMENTS Updated July 11, 2018 COUNCIL STANDING COMMITTEES Finance and Budget (4th Tues. 3pm CH #3/Chambers) -------------------------- RG, AH (chair), DS Ad Hoc Committee on Committees (2nd Tues. 1:30pm Chambers) -------------- AH, AS (chair), DS Ad Hoc Committee on Housing (3rd Thurs. 3pm Chambers) ----------------------MS (chair), AH, DF Ad Hoc Committee on Stormwater Management (not currently meeting) ------ PA, RG, AS (chair) Community Development and Land Use -------------------------------------------------------- Unassigned General Services and Special Projects ---------------------------------------------------------- Unassigned Information & Technology -------------------------------------------------------------------------- Unassigned CITY BODIES WITH COUNCIL REPRESENTATIVES Alternative Electric Management Committee -------------------------------------------------- Unassigned Lodging Tax Advisory Committee (LTAC) ----------------------------------------------------------------- MS PEG Access Coordinating Committee ---------------------------------------------------------------------- RG OUTSIDE BODIES WITH COUNCIL REPRESENTATIVES Economic Development North Olympic Development Council (NODC) ------------------------------------------------- DS (DF alt.) Health Jefferson County Board of Health ---------------------------------------------------------------------------- AS Jefferson County Developmental Disabilities Advisory Board ----------------------------------------- PA Jefferson County Substance Abuse Advisory Board ----------------------------------------------------- AS Jefferson County Clean Water District Advisory Council ----------------------------------------------- DS Jefferson County Mental Health and Substance Abuse Advisory Committee ---------------------- AS Infrastructure Public Infrastructure Board ------------------------------------------------------------------------------------ DS Law and Justice Jefferson County/Port Townsend Regional Emergency Planning Committee -------------------- DS Transportation Jefferson Transit Authority Board ----------------------------------------------------------------------- AS, DF Peninsula Regional Transportation Planning Organization Executive Board------------ DF (AS Alt) Other Climate Action Committee ------------------------------------------------------------------------------------- DS Fort Worden Advisory Committee ---------------------------------------------------------------------------- PA Jefferson County/City of Port Townsend LEOFF I Retirement/Disability Board ------------------- DF Jefferson Higher Education Committee -------------------------------------------------------------------- MS East Jefferson Fire Rescue Joint Oversight Board ------------------------------------------- AH, MS, DS OlyCAP Board of Directors ------------------------------------------------------------------------------------ RG Joint Growth Management Steering Committee----------------------------------------------- MS, DF, DS JeffCom Administrative Board -------------------------------------------------------------------------------- DS Port Townsend Main Street HUD Loan Committee ------------------------------------------------------- PA City of Port Townsend 2019 Budget Page 149 of 152 City of Port Townsend 2019 Budget Page 150 of 152 Pos.Name & Experience Exp.Pos.Name Exp. 1 Paul Schutt 5/1/19 1 Don Schussler 5/1/20 2 Jim Todd 5/1/20 2 Cate Comerford 5/1/20 3 Ed Robeau 5/1/20 3 George Randels 5/1/20 4 Roarke Jennings, Chair 5/1/20 4 Charles Paul, Chair 5/1/21 5 Daniel Greholver 5/1/19 5 Richard Berg, Vice Chair 5/1/21 6 Brenda McMillan 5/1/21 6 Craig Britton 5/1/19 7 Deborah Jahnke, Vice Chair 5/1/21 7 Kathleen Croston 5/1/19 Pos.Name & Role Exp.Pos.Name Exp. 1 Michelle Sandoval (Elected Official)N/A 1 Stan Rubin 5/1/20 2 Sherri Hanke (At Large Position)5/1/20 2 Matt Miner 5/1/20 3 Amanda Milholland (At Large Position)5/1/19 3 Kris Morris 5/1/20 4 Robert Birman (Recipient)5/1/19 4 Owen Rowe, Chair 5/1/21 5 Barb Trailer (Recipient)5/1/21 5 Dominica Lord-Wood 5/1/19 6 Janette Force (Recipient)5/1/19 6 Lisa Wentworth, Vice Chair 5/1/19 7 Denise Winter (Recipient)5/1/19 7 Maryann Tapiro 5/1/21 8 Cindy Finnie (Collector)5/1/19 8 Dan Groussman 5/1/19 9 Port of PT Designee (Collector)5/1/20 9 Nhattaleah Nichols 5/1/21 10 Fort Worden PDA Designee (Collector)5/1/20 11 Nathan Barnett (Collector)5/1/21 12 Main Street Designee (Nonvoting)5/1/21 13 VACANT Pos.Name Exp. 14 William Roney (Nonvoting)5/1/20 1 Ann Raymond, Chair 5/1/19 2 Sarah Fairbank 5/1/21 3 Jacqueline Mention 5/1/21 4 Kathyrn Ryan 5/1/20 Pos.Name Exp.5 Sidonie Wilson 5/1/20 1 Joseph Finn 5/1/20 6 Owen Rowe 5/1/20 2 Mike Kaill 5/1/20 7 Carol Klontz 5/1/21 3 VACANT 5/1/21 4 Hendrik Taatgen 5/1/21 5 Sam Feinson 5/1/21 6 VACANT 5/1/19 7 Pat Teal 5/1/19 8 Richard Dandridge 5/1/19 9 VACANT 5/1/20 City of Port Townsend Citizen Advisory Boards, Commissions and Committees HISTORIC PRESERVATION COMMITTEE (5-7) Meets 3:00pm 1st Tuesday at City Hall ARTS COMMISSION (9 max.) Meets 3:00pm 1st Wednesday at City Hall LIBRARY ADVISORY BOARD (5-7) Meets Bi-monthly 3:30pm 2nd Monday at the LLC LODGING TAX ADVISORY COMMITTEE (11 voting) Meets 3:00pm quarterly 2nd Tuesday at City Hall PARKS, RECREATION & TREE ADVISORY BOARD (5-7) Meets 4:30pm 4th Tuesday at City Hall NON-MOTORIZED TRANSPORTATION ADV. BOARD (9) Meets 4:30pm 1st Thursday at City Hall City of Port Townsend 2019 Budget Page 151 of 152 Pos.Name Exp. 1 Paul Rice, Chair 12/31/18 2 Monica MickHager 12/31/20 3 Rick Jahnke, Vice Chair 12/31/18 4 James Lagergren 12/31/20 5 Lois Stanford 12/31/19 6 Robert Doyle 12/31/19 7 Aislinn Palmer 12/31/19 Pos.Name Exp. 1 Gail Ryan 12/31/19 2 VACANT 12/31/19 3 Richard Knight 12/31/23 Pos.Name Exp. 1 Jefferson County BoCC ( Kate Dean)N/A 2 City Council (Deborah Stinson)N/A 3 JeffPUD (Jeff Randall - Vice Chair )N/A Pos.Name Exp. 4 Jefferson County Public Health (Laura Tucker)N/A 1 Bill James 10/24/19 5 Jefferson Healthcare (Matt Ready)N/A 2 Jeff Jackson 10/24/19 6 Jeff. Transit (Tammi Rubert/Leesa Monroe)N/A 3 Norm Tonina 10/24/19 7 Port of PT ( Eric Toews/Sam Gibboney)N/A 4 Bill Brown 10/24/19 8 PT Paper Corp. (Kevin Scott)N/A 5 Gee Heckscher 10/24/20 9 Cindy Jayne -Chair 12/31/20 6 Jane Kilburn 10/24/20 10 Sonja Hammar 12/31/19 7 Lela Hilton 10/24/20 11 David Wilkinson 12/31/19 8 Cindy Hill Finnie 10/24/18 12 Scott Walker 12/31/18 9 Todd Hutton 10/24/18 13 Ashley Rosser 12/31/18 10 Herb Cook 10/24/18 14 VACANT 11 Harold Andersen 10/24/20 15 VACANT Updated: 10/1/2018 VACANT, Student Representative CIVIL SERVICE COMMISSION (3) PLANNING COMMISSION (7) Meets 6:30pm 2nd & 4th Thursday at City Hall Brian Moratti, Citizen Representative VACANT Producers Group Representative (Optional) Meets at Fort Worden Commons B FORT WORDEN PDA (9-11) Name Joanna Sanders, City Clerk Melody Eisler, Library Director Robert Gray, City Council VACANT, School District Superintendent Steve Haveron, School District Representative Mark Welch, School District Video Instructor (Chair) VACANT Education Group Representative (Optional) CLIMATE ACTION COMMITTEE (15) Meets quarterly on 4th Wednesday PEG ACCESS COORDINATING COMMITTEE (8) Meets 3:30pm 2nd Tuesday at the Gael Stuart Building VACANT, Video Professional City of Port Townsend 2019 Budget Page 152 of 152