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Home My WebLink About012023 Financial Sustainability Taskforce Meeting PacketJanuary 13, 2023 1 Port Townsend Financial Sustainability Taskforce Meeting 2 | Friday, January 20, 2023| 1 – 3 pm City Hall 250 Water Street City Council Chambers Join via computer or tablet at http://joinwebinar.com enter 9 digit Webinar ID 229-232-163 • Join by phone in listen-only mode: (360)390-5064 Ext. 11 access code: 725-353-128# • Submit public comment emails to be added to the meeting record to: publiccomment@cityofpt.us Objectives Finalize the community engagement plan. Understand the City’s long-term financial outlook and identify items to explore further. Understand current City priorities and key initiatives and their connection to financial sustainability. Pre-Reading Briefing deck Community engagement plan City Manager’s 2023 Proposed Budget message Agenda Time Item Presenter 1:00 – 1:10 pm Welcome and meeting overview John Mauro, City Manager Katherine Goetz, BERK 1:10 – 1:30 pm Review and finalize community engagement plan Julia Tesch, BERK 1:30 – 2:15 pm Review City’s long-term financial forecast Connie Anderson, Director of Finance & Technology Services Ron Logghe, Finance Manager 2:15 – 2:50 pm Summaries of City priority initiatives Steve King, Director of Public Works Carrie Hite, Director of Parks & Recreation Strategy January 13, 2023 Port Townsend | Financial Sustainability Taskforce 2 Emma Bolin, Director of Planning & Community Development 2:50 – 3:00 pm Next steps and adjourn Katherine Goetz, BERK Attendees Taskforce Members Rick Jahnke Earll Murman John Nowak Catharine Robinson Troy Surber Port Townsend Staff John Mauro, City Manager Connie Anderson, Director of Finance & Technology Services Ron Logghe, Finance Manager Steve King, Director of Public Works Carrie Hite, Director of Parks & Recreation Strategy Emma Bolin, Director of Planning & Community Development BERK Consulting Staff Katherine Goetz, Project Manager Julia Tesch, Lead Facilitator and Analyst Oliver Hirn, Financial Analyst FINANCIAL SUSTAINABILLY TASK FORCE MEETING MINUTES DATE: November 18, 2022 START TIME: 1:00 p.m. LOCATION: City Hall (In person and virtual) VOTING MEMBERS PRESENT: Catharine Robinson, Rick Jahnke, Earll Murman, Troy Surber NON-VOTING MEMBERS PRESENT: Berk Consulting Staff: Project Manager Katherine Goetz, Lead Facilitator and Analyst Julia Tesch, Financial Analyst Oliver Hirn, MEMBERS EXCUSED: John Nowak MEMBERS ABSENT: CITY STAFF PRESENT: City Manager John Mauro, Finance Manager Ron Logghe, Director of Finance and Technology Services Connie Anderson, Public Works Director Steve King, Director of Parks and Recreation Strategy Carrie Hite, and Deputy Clerk Lonnie Mickle. Topic Action Welcome, Meeting Overview, and Introductions: After introductions from the taskforce members and the staff, John Mauro opened the meeting by providing an overview of the taskforce’s purpose. Julia Tesch from BERK provided an overview of the project, including the taskforce charge, project calendar, and meeting expectations. Project Overview and Taskforce Group Charge: There was a question about not having time for public comment. The intent of not dedicating time for public comment is to use these meetings to focus on the review of materials and the discussion. Members of the public can watch the meetings and meeting materials can be posted on the project website. A taskforce member asked to clarify the meaning of a “directional recommendation”. This means the taskforce is asked to provide overall guidance but may have specific recommendations on what the City needs and funding mechanisms. There was a question about the scope of work for the taskforce. Its job is to look beyond the end of 2023 and look further into the future. The taskforce can also consider issues the City is currently focusing on and how they impact long-term financial sustainability. Topic Action Budget 101: Katherine Goetz from BERK provided an overview of city budgeting. Oliver Hirn from BERK provided an overview of the City’s major revenue and expenditure items. The taskforce members had the following comments:  They would like to see the revenue/expenditure gap for the City of Port Townsend and more detail on property taxes.  Port Townsend is unique in that it has a community services fund. Services like parks maintenance and aquatics are normally part of a city’s general fund.  The taskforce members are knowledgeable about the City’s budget and there may be difference between what they know and what the public knows. Graphics help make this information easier to understand. It is important to simplify topics like property tax. Getting this information to the public is an important outcome of this project. Ron Logghe to connect with Oliver Hirn regarding priority-based budgeting. Overview of Community Engagement Options: Julia Tesch provided an overview of proposed community engagement strategies, which are a survey in January and opportunities for in-person and virtual educational meetings in March and April. The taskforce members had the following comments and questions:  How will the survey be distributed? How do we know it will reach different demographic groups?  The survey could be used to inform the public by asking informational questions, such as asking how familiar residents are with a specific issue.  Previously city staff has used “tabling” to share information. This method allows for conversation and the ability to target different kinds of people. Julia noted that it is not the most effective method in the winter.  If we want to gather input to guide conversation around the City’s budget, Topic Action the taskforce is not sure these survey questions do so. If workshops are trying to educate the public about the City’s budget, that is a different assessment than how much does the public want to pay for a specific service.  There was discussion about the right time to do a survey. Should it be before or after education about the City’s budget? There was a suggestion to have a pre-survey and a post-survey. It was discussed to do an early survey to get a baseline understanding, follow up with an engagement based on the holes/gaps in understanding learned about in the first survey, and then link together with parks/streets initiatives and drive input (via survey or other means) to inform priorities. Next Steps and Adjourn Next Regular Meeting: January 20, 2023 at 1:00 p.m. January 13, 2023 Port Townsend | Financial Sustainability Taskforce 2 Emma Bolin, Director of Planning & Community Development 2:50 – 3:00 pm Next steps and adjourn Katherine Goetz, BERK Attendees Taskforce Members Rick Jahnke Earll Murman John Nowak Catharine Robinson Troy Surber Port Townsend Staff John Mauro, City Manager Connie Anderson, Director of Finance & Technology Services Ron Logghe, Finance Manager Steve King, Director of Public Works Carrie Hite, Director of Parks & Recreation Strategy Emma Bolin, Director of Planning & Community Development BERK Consulting Staff Katherine Goetz, Project Manager Julia Tesch, Lead Facilitator and Analyst Oliver Hirn, Financial Analyst DRAFT January 13, 2023 1 Engagement Plan Port Townsend Fiscal Sustainability | DRAFT January 13, 2023 Project Overview Project Purpose Build community knowledge about:  How much it costs to provide services valued by the community and how the City funds those services.  Options to pay for new investments that are desired by the community. Engagement Purpose  Build public understanding of the City’s financial condition.  Encourage members of the community to engage with staff and leadership about the City’s collective financial future.  Gather input from residents to ensure future City investments are aligned with resident priorities. Engagement Audience People who live in Port Townsend. DRAFT January 13, 2023 Port Townsend | Financial Sustainability Task Force 2 Community Overview Selected characteristics of the Port Townsend community are provided below. Characteristics of Jefferson County and the State of Washington are also provided as a comparison. Characteristic Port Townsend Jefferson County Washington Age People under 18 12.3% 11.7% 21.7% People 65 years and over 36.6% 39.2% 16.2% Race and Ethnicity American Indian and Alaska Native alone 1.5% 2.1% 2.0% Asian alone 1.3% 2.0% 10.0% Black or African American alone 1.5% 1.2% 4.5% Hispanic or Latino alone 3.9% 4.1% 13.7% Native Hawaiian and Other Pacific Islander alone 0.0% 0.3% 0.8% Two or more races 2.9% 3.4% 5.2% White alone, not Hispanic or Latino 88.8% 87.9% 66.0% Household Characteristics Owner-occupied housing rate 63.9% 77.6% 63.3% Households with a computer 91.9% 91.9% 94.8% Households with a broadband internet subscription 86.6% 88.5% 90.1% Education Bachelor’s degree or higher 51.9% 42.5% 36.7% Income Median household income $54,907 $57,693 $77,006 Persons in poverty 14.9% 10.6% 9.9% Source: US Census Quick Facts, 2022. Based on ACS 5-year estimates, approximately 5% of residents (~520 people), speak a language other than English at home. The most commonly spoken language other than English is Spanish: approximately 2% of residents (~230 people) speak Spanish at home. Of these people, about 69% (~160 people) speak English less than “very well.” DRAFT January 13, 2023 Port Townsend | Financial Sustainability Task Force 3 Equity and Focused Engagement Meaningful engagement should strive to reach all members of the community, including groups that are often less likely to participate in typical engagement methods. In Port Townsend, groups for focused engagement and potential strategies include: Groups for Focused Engagement Potential Engagement Strategies BIPOC communities Outreach via community partners and trusted channels Renters Posters at multifamily housing buildings, mailed workshop invitations People without internet at home Posters at Library locations, paper versions of the survey, mailed postcards for workshop invitations People with low incomes Outreach via service providers People under 18 and their families Outreach via social media and schools Promotional Channels  City email  City social media  Port Townsend Leader  Schools  Community partners  Project webpage DRAFT January 13, 2023 Port Townsend | Financial Sustainability Task Force 4 Engagement Methods The following methods are listed in rough chronological order. 1. Project Webpage (December – Ongoing) Overview A webpage on the City’s website with up-to-date information about the project. Objectives  Maintain project transparency  Provide a repository of resources to which community members can refer Content to include  Project timeline and purpose  Budget 101 videos  Links to participate in the survey and workshops  Links to other relevant City processes 2. Videos: Budget 101 and the Price of Government (January and February) Overview A series of short, recorded presentations to cover “budget 101” topics. Videos will be approximately 3-5 minutes each and will use slides from the budget 101 content presented in the November Task Force meeting. Objective  Provide residents with a baseline understanding of the City’s financial condition.  Support survey participants who seek additional context to inform their survey answers Topics to cover  How the City’s budget is created  The City’s primary revenue sources  The City’s core services and what they cost  Current challenges with maintaining services to the community and investing in new priorities. DRAFT January 13, 2023 Port Townsend | Financial Sustainability Task Force 5 3. Financial Strategy Option Workshops (April) Objectives  Gather resident input on potential financial strategy options before making recommendations to City Council  Reach a select number of residents for in-depth, qualitative feedback Translation and interpretation TBD - Based on community demographics, we may want to consider offering interpretation Equity supports  Childcare for in-person events  Multiple formats: some virtual, some in-person  Multiple times of day: some evenings, some afternoons CITY OF PORT TOWNSEND VISION A thriving community for all... CITY OF PORT TOWNSEND MISSION STATEMENT Champion aspirations for a thriving community as envisioned in our Comprehensive Plan THE 2023 CITY MANAGER BUDGET AND 2022 REVIEW Message from the City Manager: I am proud of our community for how well we have bounced back – and forward – from some of the most difficult years in memory. Our renown festivals, events, performances, and activities came fully alive after a bit of dormancy the last few years, igniting our imaginations, spirits and the kind of cohesiveness that brings a great community together. Of course, this makes me deeply proud of our partners from all sectors that put their energies, inspiration, hard work and creativity to the task of breathing this new life into Port Townsend. Thank you. I am also proud of our City team for how they have continued to work diligently through real adversity to deliver the services you depend on – everything from water, streets and library books to parks, permits and public safety. Not only has the team worked through unprecedented difficulties related to Covid, but they have done so in the face of issues amplified by Covid, like our historic staff recruitment and retention challenges. Almost all City teams were understaffed and many still are. Because our staff count has been trending downward the past decade, we were already operating beyond maximum effort. Being down further puts far more load on everyone and makes it harder to get the job done. Despite these challenges, the team and I have focused squarely and holistically on the budget process, as the budget underpins everything we do. Together, we have created better processes, better collaboration, better tools, better delivery, and better strategy. I’d like to explain each of these to you briefly. 2023 Budget Book - Page 3 of 102 Better Processes Like the last couple of years, we front-loaded our 2023 strategic workplan retreat with City Council in the summer, a half-year earlier than usual. Doing this allows us to decide our priorities first, and then let those priorities shape the development of a budget that focuses on delivering and investing in our priorities. With new finance team leadership, we have also been working to reexamine and understand the past with an aim for wholesale improvements in how we do things. One of these areas was the all-team development of a Capital Facilities Plan so we have a good trajectory for across-the-board investments over the next 6+ years and continue to build out a more forward-thinking and comprehensive vision. Another area was in unraveling layers of unnecessary complexity in general revenue to create one main revenue line to the general fund. This strategy allows us to determine the best allocation of general revenue to best support departments, programs, and priorities. Better Collaboration Similar to how all departments collaborated together on the Capital Facilities Plan, department directors have been increasingly involving their managers and teams in the budget process, so the budget reflects their expertise, observations and experience. Department directors and I continue to work through the budget together almost every step of the way – and this has been enjoyable as we’ve onboarded new department directors who have embraced this approach. Beyond our direct City team, we continue to collaborate on budget-related items with other organizations and agencies. For instance, the Intergovernmental Collaborative Group (ICG) has held public sessions on coordinated capital investments, projects and housing, fueled by renewed commitments and the momentum of recent state and national awards to take us to greater heights. Each investment or project has a direct budget impact or strategic investment angle, so the better we collaborate, the better we all do. Better Delivery Collaboration and hard work have driven several successes this past year. They help build momentum and practice – and we try to learn from them as well as from our mistakes. Despite the problems borne by the pandemic, we have made new headway like planning and building new projects, signing new historic agreements, recruiting and retaining great talent, making investments in streets and parks, delivering great programs and committing to even more productive partnerships. Whether on the streets, in our water system or at our library, the City team continues to innovate for better delivery for our community. 2023 Budget Book - Page 4 of 102 Better Tools Our financial forecasting continues to resemble a quality crystal ball. The team continues to work with high uncertainty and to do very well anticipating and preparing for trends. The financial forecast looks strong for 2023 as we come through Covid with most revenue streams on the rise. Of course, inflation and costs are on a fast rise too, so that’s why I’m thrilled to have excellent financial firepower in the team to get the balance right. Beyond the team, we have a second installation of one-time federal ARPA fund dollars to program and another year of restricted “banked capacity” funds from the annexation of our Fire Department into East Jefferson Fire Rescue. Those tools will likely help us fill gaps created and exacerbated by Covid. They also may be forerunners for others that might emerge from our Financial Sustainability Task Force and their report to City Council next year. Better Strategy Making those improvements above are an awesome start, but if we just cruised along year to year, we would start to lose ground on longer-term financial sustainability and the challenges of balancing a budget would only get more difficult. That’s why we are lining up our 2023 budget process within the context of our financial sustainability project – and why one of the top strategic priorities is “strengthen our financial position.” Doing so will help ensure our year-by-year budget priorities and investments put and keep us on a financially sustainable path so we can do what we do indefinitely. Where they come together is our integrated approach of using one-time federal ARPA funds strategically alongside the highly disciplined use of a healthy general fund reserve balance to pay off some of our debt. Doing so both provides priority tools and resources we need to be more effective while building some space otherwise occupied by debt payments. You might recognize those financial sustainability principles in practice elsewhere, too. For instance, they show up in everything from the reconstruction of a road like Walnut Street and the installation of an Edge Lane Road to the completion of Banked Capacity projects for parks and the development of the Capital Facilities Plan. We are committed both right now and in the long run to stewarding every dollar of public funds for the best positive benefit for all of our community. Now that you know a little bit about the budget philosophy and what guided the budget development, what’s the snapshot of what’s actually in the 2023 budget? A few highlights: New positions. There are a total of 100.7 Full Time Equivalent (FTE) positions, up from 95.2 in 2022. This is an increase after consecutive years of reduction (from 109.2 in 2018). New budgeted positions include a Long-Range Planner, a Communications and Marketing Manager, a Deputy Police Chief, an HR Assistant, 2023 Budget Book - Page 5 of 102 an in-house Behavioral Health Navigator, a Housing Grant Coordinator and five seasonal workers (Parks, Streets, Facilities). New equipment and resources. Use of a healthy equipment reserve fund and one-time federal funding allows for the purchase of long-needed equipment to make work more efficient and effective. This includes a temporary long-range planning position referenced above, parking management implementation support, public record scanning, audio-visual improvements for public meetings, security and performance upgrades to Information Technology systems, replacement of key City vehicles, match for Kah Tai restroom improvements, and improvements in the City Hall staff working environment. New collaborations/projects. “Banked Capacity” annexation levy funding prioritizes street improvements across the city. The “How Your City Works” program will be scaled up in 2023 and the Communications and Marketing Manager position will amplify existing relationships and opportunities. A number of task forces – including Financial Sustainability, Envision the Golf Course, Healthier Together, deer management, Equity-Diversity-Inclusion Advisory Body – will advance complex issues for City Council consideration. New savings. New approaches and innovation in how we deliver services will create savings. These include but are not limited to road surfacing, traffic calming treatments, LED lighting, and facility repair and maintenance. New revenue. The Port Townsend Paper Corporation (Mill) will continue to contribute capital (and some general) funding to the water system through the water use agreement and this will be the first full year of billing for their water consumption. ARPA and Banked Capacity funding continues in 2023, with Banked Capacity funding increasing by approximately $300,000 (to deliver on street projects noted above). New approach to pay down debt. Using our healthy general fund reserve balance, currently far above the 8-15% policy, to pay off some of our existing debt (bonds totaling about $600,000 and $1,000,000) will help provide some headroom for the coming years which would have otherwise been used for debt payments. Thank you for your interest and involvement in this community endeavor. I encourage you to dive into more detail in the budget book. I hope you’ll see that we have started to move past these difficult years to put ourselves in a better financial position for the long term. After all, our community depends on the City to be stable, sustainable and supportive – and we all depend on each other to create a healthy, inclusive and resilient community for us and for future generations. John Mauro City Manager 2023 Budget Book - Page 6 of 102 CITY OF PORT TOWNSEND FINANCIAL SUSTAINABILITY TASKFORCE MEETING 2 | JANUARY 20, 2023 1 MEETING OVERVIEW Objectives 1.Finalize the community engagement plan. 2.Understand the City’s long- term financial outlook and identify items to explore further. 3.Understand current City priorities and key initiatives and their connection to financial sustainability. 2 1:00 – 1:10 pm Welcome and meeting overview 1:10 – 1:30 pm Review and finalize community engagement plan 1:30 – 2:15 pm Review City’s long-term financial forecast 2:15– 2:50 pm Summaries of priority initiatives 2:50 – 3:00 pm Next steps and adjourn Agenda PROJECT SCHEDULE 3 Nov 2022 Dec 2022 Jan 2023 Feb 2023 Mar 2023 Apr 2023 May 2023 June 2023 July 2023 Aug 2023 and Ongoing Implementation 2024 Budget Ballot? Taskforce Meeting 1 Taskforce Meeting 2 Taskforce Meeting 3 Taskforce Meeting 4 Taskforce Meeting 5 Draft Report to Council Final Report to Council In-person /virtual public engagement Nov 2022 Dec 2022 Jan 2023 Feb 2023 Mar 2023 Apr 2023 May 2023 June 2023 July 2023 Aug 2023 and Ongoing MEETING ARC 4 Understand the context. Review city budgeting and advise on community engagement strategy 1 Identify priority areas to review. Discuss long-term financial outlook and major revenue and cost drivers. Review current City priorities and key initiatives. 2 Learn how PT compares to similar cities and identify specific strategies. Review revenue options. 3 Review community input and identify funding strategies. Prepare draft recommendations. 4 Review and finalize recommendations. 5 COMMUNITY ENGAGEMENT PLAN 5 ENGAGEMENT OVERVIEW Engagement Purpose Build public understanding of the City’s financial condition. Encourage members of the community to engage with staff and leadership about the City’s collective financial future. Gather input from residents to ensure future City investments are aligned with resident priorities. Engagement Audience People who live in Port Townsend Groups for Focused Engagement & Engagement Strategies BIPOC communities: Outreach via community partners and trusted channels Renters: Posters at multifamily housing buildings, mailed workshop invitations People without internet at home: Posters at Library locations, paper versions of the survey, mailed workshop invitations People with low incomes: Outreach via service providers People under 18 and their families: Outreach via social media and schools. 6 SUGGESTED MODIFICATION TO APPROACH Recommend a shift in the engagement approach: To understand community priorities, use the input already provided and how it has informed current City priorities and key initiatives underway Focus on educating and reflecting back to the community about priority needs and investments Still will solicit input on specific funding options 7 COMMUNICATION AND ENGAGEMENT METHODS Method Timing Objectives 1.Project Webpage December - Ongoing Maintain project transparency Provide a repository of resources to which community members can refer 2.Videos: City’s Financial Condition January - Ongoing Provide residents with information about the City’s financial condition. 3.Financial Strategy Option Workshops April Gather resident input on potential funding options before making recommendations to City Council Reach a select number of residents for in-depth, qualitative feedback 8 1. PROJECT WEBPAGE 2. VIDEOS: BUDGET 101 AND THE PRICE OF GOVERNMENT PROJECT WEBPAGE Content to include Project timeline and purpose Videos on the City’s financial condition Links to participate in workshops Links to other relevant City processes VIDEOS: THE CITY’S FINANCIAL CONDITION Topics to cover The City’s primary revenue sources The City’s core services and what they cost Current challenges with maintaining services to the community and investing in new priorities. 9 3. FINANCIAL STRATEGY OPTIONS WORKSHOPS CONTENT Share: Potential financial strategy options developed by the Task Force Gather: Input on financial strategy options EQUITY SUPPORTS Childcare for in-person events Multiple formats: some virtual, some in-person Multiple times of day: some evenings, some afternoons 10 DISCUSSION What community partners/service providers can we work with to reach: BIPOC community members? Households with low incomes? What are the most important topics to cover in the “Budget 101 and the Price of Government” videos? We will discuss the funding options workshops closer in advance of those events. 11 LONG-TERM FINANCIAL FORECAST 12 DRAFT LONG-RANGE FINANCE MODEL Customized Long-Range Financial Model Long-range forecast of operating revenues and expenses Long-range forecast of ending fund balances Focuses on major tax supported funds Allows for scenario analysis 13 FINANCE MODEL ASSUMPTIONS Actual revenues and expenditures through 2021, year-end estimates for 2022, budget for 2023, increases by inflationary factors for 2024 and beyond: 1% property tax 2% other revenues 4.25% labor and benefits 2% other expenses $300k/year Capital Matching in 2024 and beyond Nonrecurring revenues and expenses are excluded 2021 and 2022 ARPA Grant Award 2020 debt refinancing 14 OPERATING REVENUES AND EXPENSES FOR TAX SUPPORTED FUNDS 15 $0 $5 $10 $15 $20 2017 Actual2018 Actual2019 Actual2020 Actual2021 Actual2022 Est.2023 Budget2024 Frcst2025 Frcst2026 Frcst2027 Frcst2028 Frcst2029 Frcst2030 Frcst2031 Frcst2032 Frcst2033 FrcstMillionsOperating Revenues & Operating Expenditures (General, Streets, REET, Comm. Svcs. & Debt Funds) Status Quo Governmental Revenues Governmental Expenses ENDING FUND BALANCES FOR TAX SUPPORTED FUNDS 16 -$15 -$10 -$5 $0 $5 $10 2017 Actual2018 Actual2019 Actuals2020 Actual2021 Actual2022 Est.2023 Budget2024 Frcst2025 Frcst2026 Frcst2027 Frcst2028 Frcst2029 Frcst2030 Frcst2031 Frcst2032 Frcst2033 FrcstMillionsENDING FUND BALANCE & RESERVE TARGET (General, Streets, & REET, Com Svcs, & Debt Funds) Status Quo Total Ending Fund Balance Total Policy Reserves OPERATING REVENUES AND EXPENSES FOR STREETS FUND 17 $0 $400,000 $800,000 $1,200,000 $1,600,000 2017 Actual2018 Actual2019 Actual2020 Actual2021 Actual2022 Est.2023 Budget2024 Frcst2025 Frcst2026 Frcst2027 Frcst2028 Frcst2029 Frcst2030 Frcst2031 Frcst2032 Frcst2033 FrcstOperating Revenues & Operating Expenditures (Streets Fund) Status Quo Streets Operating Revenues Streets Operating Expenses SCENARIO ANALYSIS The next two slides provide a look at the forecast if $1 million in recurring revenue were added each year. If $1 million in recurring revenue were added in 2024, the finance plan becomes sustainable through 2029. This assumes the same level of spending and service delivery. If the new revenue is matched with new ongoing expenditures, the financial plan would look like the previous slides. 18 SCENARIO ANALYSIS EXAMPLE 19 $0 $5 $10 $15 $20 2017 Actual2018 Actual2019 Actual2020 Actual2021 Actual2022 Est.2023 Budget2024 Frcst2025 Frcst2026 Frcst2027 Frcst2028 Frcst2029 Frcst2030 Frcst2031 Frcst2032 Frcst2033 FrcstMillionsOperating Revenues & Operating Expenditures (General, Streets, REET, Comm. Svcs. & Debt Funds) with $1M New Recurring Revenue Governmental Revenues Governmental Expenses SCENARIO ANALYSIS EXAMPLE 20 -$15 -$10 -$5 $0 $5 $10 $15 2017 Actual2018 Actual2019 Actuals2020 Actual2021 Actual2022 Est.2023 Budget2024 Frcst2025 Frcst2026 Frcst2027 Frcst2028 Frcst2029 Frcst2030 Frcst2031 Frcst2032 Frcst2033 FrcstMillionsENDING FUND BALANCE & RESERVE TARGET (General, Streets, & REET, Com Svcs, & Debt Funds) with $1M New Recurring Revenue Total Ending Fund Balance Total New Ending Fund Balance Total Policy Reserves DISCUSSION What questions do you have about the forecast? Where do you want more information? 21 CITY PRIORITIES AND KEY INITIATIVES 22 CITY PRIORITIES AND KEY INITIATIVES Focus on being forward-thinking and strategic Building the 2023 budget based on strategic priorities Understanding infrastructure needs and building a long-term capital facilities plan Informed by engagement from the community Staff held public sessions on capital investments, projects, and housing Current key initiatives are in response to community priorities Additional engagement is part of key initiatives 23 CITY PRIORITIES FOR 2023 Invest in our people Engage our community Strengthen our financial position: Set the City and community up for sustained success by deliberately choosing to build financial sustainability to address the challenges of today and prepare for tomorrow. Envision our sustainable future Embrace and resolve our community’s challenges Deliver the basics Serve our community 24 KEY INITIATIVES Key initiatives underway that reflect the community’s priorities and require investment Envision Port Townsend Golf Course and Mountain View Commons Port Townsend Healthier Together Community Health and Wellness Center Comprehensive Streets program Housing 25 ENVISION GOLF COURSE AND MOUNTAIN VIEW COMMONS There is desire to decide what this community asset should be and then invest accordingly Significant investment is needed to bring the Golf Course up to standard Community engagement will help determine the future use of the Golf Course Feedback collected during the development of the Parks, Recreation, and Open Space plan update provided the basis for current efforts 26 COMMUNITY HEALTH AND WELLNESS CENTER There is a desire for health and wellness opportunities in the community: current facility is past its useful life Desire to work with partners and the community to invest in a new asset for the community Community engagement will help in the planning and design phase Feedback collected during the development of the Parks, Recreation, and Open Space plan update provided the basis for current efforts 27 COMPREHENSIVE STREETS Staff conducted engagement with Council and the community around the operations, improvements, programming, and preservation of streets The goal is to identify ways to preserve and improve infrastructure now and in the future Staff want to implement services that reflect the public’s level of expectations 28 HOUSING Staff is conducting engagement now on specific tactics Engagement to begin in the coming months will focus visioning a workforce housing opportunity The goal is to ensure the City has diverse, affordable, and stable housing, to support long- term community well-being – this may require an investment from the City 29 DISCUSSION What questions do you have? How do you see these initiatives intersecting with the City’s financial sustainability? What information is most important for the public to understand about these initiatives when they provide input on their preferred funding strategies? 30 NEXT STEPS 31 NEXT STEPS March 17: Task Force Meeting 3 to review benchmarking information and begin discussing funding strategies Questions: Contact Connie Anderson at canderson@cityofpt.us 32