HomeMy WebLinkAbout061623 Financial Sustainability Task Force Meeting Packetcity Port/,,,1��T ownsen
Financial Sustainability Task Force
Meeting Agenda
June 16, 2023 — 1-3 p.m.
City Council Chambers, 540 Water Street, Port Townsend, WA
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Call to Order/Roll Call
II. Approval of May 19, 2023 Minutes
III. Review Agenda and Meeting Objectives
IV. Review Draft Report and Suggested Funding Packages
V. Roundtable Discussion on Tax and Non -Tax Financial Options
to Fund No Net Loss and Enhanced Packages
VI. Determine Final Recommendations to Present to Council
VII. Next Steps
VIII. Adjourn
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City f Vi c. lira .-T n end �mm IIF i iri � ire l iii III i,il t iii iirl � 1. iii III'im�: Initiative:
IIS iii iir i � iir c iii � I � U � iii iir � II S ' III'iii 1, "I"Z rug IIS IIS iir m Draft Il µIµ ,. m '� opµ .iii III
Y �r
Townsen
7'17(,: purpose ofthis rporl, is to present, thefindings and C:ftbr't5 oftfic, Financial
Sustainability Risk fbrce tO (,,it')l COU17CH, including a set of"recorrunendations and
option5jiv, the City on itsjour�ney toward greater',financioi,5U,5t,airiability. The report
is meant, to in ' frorrn the neor-terrr? and longer-teryn decisionS by the City Council and
the c(,)rnrrujnity meant to deliver sustained, cZfficient, 'I'dir, and affOrdable proViSion
ofbasic infleastructure and services that underpin a healthy natural environmeril,71
rneaningfUl economic development, and a high quality oflifi.,w fbr residents. The Risk
Force recommendations /buis holistically or) a// cityservices with an emphasis on
priorities determined through widespread community engagernent and planning
over a number o,f years. The two proposed packages either sustain r:°urrent levels of
SEYO ce or enhance current levels ofservice.
Financial Sustainability Task Force Draft Report to City Council Page 2 of 31
Executive Sulrr'un ar�
Financial sustainability is critically important for the City to meet ongoing and evolving community needs
over the long-term. The aim is to deliver sustained, efficient, fair, and affordable provision of basic
infrastructure and services that underpin a healthy natural environment, meaningful economic
development, and a high quality of life for residents. This means carefully balancing the community's
ability to generate revenues to match the cost of services and obligations over the long-term. This work
has an impact on each and every one of us. The City owes it to our current and future generations to get
that balance right.
The purpose of this report is to present the findings and efforts of our 4 -member Council -appointed
Financial Sustainability Task Force to City Council, including a set of recommendations and options for the
City on its journey toward greater financial sustainability. The report is meant to inform the near-term and
longer-term decisions by the City Council and the community on its journey toward greater financial
sustainability.
Our Task Force recommendations focus holistically on all city services with an emphasis on strategic
priorities determined through widespread community engagement and planning over a number of years,
including core services, housing, streets, and parks.
While nearly infinite interrelated choices exist to move forward in some way with financial sustainability,
there are three most basic scenarios for how to move forward: do nothing, sustain current services, and
enhance services. After review of copious materials, robust discussions, and applying criteria to various
choices, the Task Force has concluded that doing nothing is not an option. Thus, this report focuses on
packages of inter -related and interdependent tax and non -tax options to sustain current services and, in
some cases, enhance services. These two packages are described briefly below and further in Section IV
of the report.
Staff has prepared packages that are the most feasible for meeting the service levels for both sustaining
current services as well as providing enhanced services.
Package A: Sustain Current Service
Core services reliant on economic development initiatives, including support of diverse
commercial growth, possible future annexation of Glen Cove, implementation of a parking
management program, increasing the utility tax an additional 2% above the current 2023 rate, and
utilizing the banked capacity revenue. Estimated revenue: $2.21m - $2.77m.
Comprehensive Streets reliant on Transportation Benefit District (TBD) sales tax, Real Estate Excise
Tax (REET), Fees for Service, and Fee in Lieu or Impact Fees. Estimated revenue: $1.06m.
Parks reliant on utility tax, parks foundation, impact fees, and to some degree, Glen Cove
annexation. Estimated revenue: $365k.
Pool reliant on regional Metropolitan Parks District (MPD) property tax and Fee for Services.
Estimated revenue: $3.05m.
Financial Sustainability Task Force Draft Report to City Council Page 3 of 31
Affordable Housing reliant on Fee in Lieu program, affordable housing grants, and sale of City
property. Estimated revenue: $1.15m.
Library operations reliant on levy lid lift on general property tax revenues. Estimated revenue:
$260k.
Package B: Enhance Services
Core services reliant on economic development initiatives, including support of diverse
commercial growth, possible future annexation of Glen Cove, implementation of a parking
management program, increasing the utility tax an additional 2% above the current 2023 rate, and
utilizing the banked capacity revenue. Estimated revenue: $2.21m - $2.77m.
Comprehensive Streets reliant on Transportation Benefit District (TBD) sales tax, Real Estate Excise
Tax, Fees for Service, and Fee in Lieu or Impact Fees, Lodging Tax. Estimated revenue: $1.08m.
Parks reliant on utility tax, parks foundation, impact fees, Real Estate Excise Tax (REET) and to
some degree, Glen Cove annexation. Estimated revenue: $465k.
Pool reliant on regional Metropolitan Parks District (MPD) property tax and Fee for Services.
Estimated revenue: $4.35m.
Affordable Housing reliant on Fee in Lieu program, affordable housing grants, and sale of City
property. Estimated revenue: $1.15m.
Library operations reliant on levy lid lifts on general property tax revenues. Estimated revenue:
$520k.
The City Council will receive these recommendations in July when the report is final. Deliberations are
expected over the coming months with consideration of policy decisions and future budgets. Deliberations
and community engagement is also expected into the coming years, as it will likely take many years to craft
and implement sustainable solutions. One thing is certain: inaction will only put us further at risk and
potentially jeopardize a more sustainable future for us all. In contrast, proactive, sustained, collaborative
efforts will help us balance our community's aspirations with financial realities and prepare us for the
future that we choose — a future that is more stable, more sustainable, fairer, and better for us all.
Financial Sustainability Task Force Draft Report to City Council Page 4 of 31
II I III w hritroductiori & Background
Financial sustainability is critically important for the City to meet ongoing and evolving community needs
over the long-term. Providing basic infrastructure and services that underpin a healthy natural
environment, meaningful economic development, and a high quality of life for residents means carefully
balancing the community's ability to generate revenues to match the cost of services and obligations over
the long-term. This work has an impact on each and every one of us. The City owes it to our current and
future generations to get that balance right.
The City of Port Townsend is in a solid financial position at the current time due to a number of unusual
circumstances. Even with significant challenges and substantial revenue reductions caused by the COVID-
19 pandemic, the City managed to adapt, innovate, and collaborate to sustain operations and to stay
within its budgetary constraints. Additionally, federal and state COVID support provided funding to help
the City navigate these last three years. This current financial condition provides the perfect timing and
context to evaluate the long-term financial sustainability of the City.
Pre-COVID outlooks showed significant future financial challenges threatening the public services we all
depend on and enjoy. Disinvestment in streets and parks are two of the largest indicators illustrating these
challenges. Sustaining services and service quality in the face of increasing service costs and while tax
revenues are not keeping pace with those costs defines the fundamental problem. That said, this problem
may not be fully understood by the public who depend on those services. The problem is compounded by
the present need to address numerous deferred maintenance projects such as streets, city buildings,
parks, and fleet for which limited or no direct revenue is currently available. Finally, the current labor and
housing market put additional stresses and challenges on the Port Townsend City government as well as
on our local businesses, organizations, and the public we serve.
It will take many years to craft and implement sustainable solutions. The longer we delay action, the more
likely we are to suffer a major setback and the more difficult the work will be to ensure our financial
sustainability well into the future. However, working together closely as a community will help us balance
our diverse aspirations with financial realities and prepares us for the future. Doing so is also a promising
opportunity to align expectations, build strong and productive partnerships, develop lasting trust, and
draw our community closer together as we chart a course to a better future for all.
Financial Sustainability Task Force Draft Report to City Council Page 5 of 31
Vision arid Desired Outcomes
While every individual's vision for the future may be different, the general vision for this work is for the
sustained, efficient, fair, and affordable provision of basic infrastructure and services that underpin a
healthy natural environment, meaningful economic development, and a high quality of life for residents.
Put another way, the work aims to carefully balance the community's overall needs for services that deliver
important outcomes with our ability to generate corresponding revenues over the long-haul.
The vision and outcomes require thoughtful, deliberate, proactive, and courageous collaboration and
decision-making by the City Council and the community at large. Solving for the future our community
wants also means a systems -approach to solve for the whole instead of individual pieces; this is
represented by interconnected intervention packages and recommended actions described in Section IV
below. It is meant to weave together core service needs for a functioning and effective city government
alongside specific community -identified funding priorities of housing, streets, and parks.
The specific outcome of this Financial Sustainability Initiative effort is a 10+ year implementation strategy
meant to ensure:
• Core services are sustained in order to provide a baseline level of service for an effective and
functioning city government.
• Investment in housing to address the current housing crisis and improve housing attainability so
that all income levels have access to quality, attainable housing.
• Investment in the street system is initiated in a preventative maintenance program and to claw
back from lack of investment over the past 20+ years.
• Investment in the parks system to address a pool that needs to be replaced and
improvement/development of parks and recreational facilities over the long term while sustaining
maintenance of the facilities the City already is responsible for maintaining.
Hinainciiai Sustaiiiirmabiiiiliity "I ask Foirce and IIP IIeirnbeirs
The City of Port Townsend established a four -member Financial Sustainability Task Force, appointed by
the Mayor and Council through an application system, to assist the City with a review of the City's current
financial position and to identify options for the future. The Task Force began its work at their first meeting
on November 18, 2022. They have met six subsequent times, usually for 2 -hour blocks and with deep
review of significant materials in-between meetings. The Task Force also met jointly with the City Council
on May 8, 2023, to discuss the work they had completed to date and to provide City Council a chance to
ask questions and dialogue around findings to date. That meeting is not included in the graphic below.
Financial Sustainability Task Force Draft Report to City Council Page 6 of 31
The Task Force has been working toward a recommendation of long-term financial sustainability options
to City Council in mid -2023, represented by this report.
The Task Force has reviewed information and materials regarding municipal budgeting, the City's current
department budgets and service levels, community engagement, financial forecasting, priority initiatives,
peer city comparisons, level of service considerations, revenue options and strategies, and evaluation
criteria for funding strategies. A selection of those materials can be found in the Appendix (Section VI) and
all meeting minutes, agendas, materials, and video recordings can be found at:
httDS://CitvofDt.us/enizaaeDt/sage/financial-sustainabilitv-initiative.
All the meetings have been open to the public. Public comment was available during all these meetings.
Members of the Task Force include:
• Catharine Robinson
• Earll Murman
• John Nowak
• Rick Jahnke
Birliief Descriptions of Services, Core Service Needs, aind Auras of IlPirlioir
i't'y
lCIW
The City of Port Townsend directly provides a number of important services to the community. The City
also works in partnership with other agencies who may play a more direct role in some service provision,
as per below:
Financial Sustainability Task Force Draft Report to City Council Page 7 of 31
I M a WOMEN=
SERVICES PROVIDED lay"r'HIE 01
Development Services: Planning,
perinnitting,L inspections
General Government. City
management, Ilegall services, finance,
human resources, IT
Library: Library services
Pal Recreation & Community
Services- Park maintenance, recreatronall
activiities
police. Plubllic safety services
PublicWorks. Maintenance of physical
infrastructureand transportation systems
Solid Waste: Garbage and recycling
services
Water/Sewer: Drinking water sewer
treatment services
SlISIRVIICES IRM.)VIIIIIINEID IIT AEFFIERSON1 COUNTY
Assessor. Assessment of real property
Economic Development- Buirsiness attraction and retention
Emergency Mlanagemenc Disaster planning, mitigation, and recovery
Environimentall Public Health. Water quality maintenance, lDreservation of open
space, IDeir-matting of waste systems
Municipall Couirt. Processing of cases and collection of fines,
Public Health. Communicable disease management, family health services
SIEIR'VH,'.IES PROVIDED 13YOTIHERIENTITIES
Electricity (via Jefferson County PUD)
Fire prevention and emergency response (via East Jefferson Fire and Rescue)
K-112 education (visa Port Townsend Schooll District)
Port maintenance (via Port of Port Townsend1
Public transit (via Jefferson Transit Authority)
911 services (via JeffCom)
A few key examples of services provided by the City are above. This is not an exhaustive list. The following
provides the next layer of deeper detail — but is also not an exhaustive list:
Deliver on critical oiler otions, otigoirlig statutot-y responsibilities, on core City ftirfictiorlis
Legal services
Utility billing and cashiering for variety of City services
Insurance and risk management
Annual reporting and municipal audits
Records management
Business license compliance and business and occupation tax reporting
Responding to public records requests
Purchasing administration and accounts payable
Public meetings
Payroll
Training of elected members, staff and volunteers
Information Technology — including network security and user support
Liaison with Councilmembers, and stewardship of political decision-making
Books & material circulation including curbside delivery, databases, e -books
Community leadership and partnership with other agencies and organizations
and e-audiobooks, children's web resources, grab bags, interlibrary loan
Workplan and budget development: integration and oversight of City operations
Programs and events, including virtual programming, youth programming
Compliance with internal and external policies, regulations and requirements
and adult programming
Coaching, mentoring and performance evaluation of employees
Staff response to patron requests and associated services
Special projects, communication, engagement and advocacy
Access to technology
Code compliance
Emergency response
Permitting review and approval
Patrol, investigation
Building inspections
Special events
Current planning
Emergency preparedness
• Long-range planning
Records requests
Recruitment, including development of a recruitment strategy
Training
Union contract negotiations
Policy development and refinement
Retention, including a retention strategy and employee recognition program
Street maintenance, operations and programming
Performance evaluation
Stormwater operation and maintenance
Employee engagement, engagement survey and manager follow up
Wastewater collections and treatment and compost
Coaching, mentoring and training programs
Management of trash collection and recycling
Internal HIR -related policy development, application and evaluation
Drinking water treatment and distribution
Facilities management, oversight, property management, rentals and event permitting
Engineering, major capital projects
City Volunteer Program, including adopt -a -trail, adopt -a -park and Library/Police volunteers
Development review for infrastructure extension
Budgets and financial reporting
Right of way management including urban forestry
Forecasting and financial analysis
Fleet operations, maintenance, and replacement
Management of parks and trails systems
The cost of city services broken down by department is below. Note that the utilities/enterprise funds like
water and wastewater are not included since they are required to be separate self-sustaining budgets
based on rates:
Financial Sustainability Task Force Draft Report to City Council Page 8 of 31
I■ I
EIIIIIIIIIIII
PUI-'dic Wodo
6't ks, etreotuw�, e,.intl ±Curr9unu ity &e wires
f'Vanrfing and Cormri wifyr C: evelcapn ent
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Adurtiinkirotion, 0"incv'Ruro, oncl lHr4
Finally, given local, regional, statewide and federal complexities, it is no wonder that funding sources
and recipient services are often misunderstood. For
instance, only 11% of local (Port Townsend) sales tax
revenue and 16% of property tax revenue go directly
to the City of Port Townsend. A range of other
regional municipalities as well as the State of
Washington receive the remaining majority of sales
and property tax funding generated locally in Port
Townsend.
This means that those services provided above are
not funded to the degree that many in our
community believe they are, which often creates a
mis-match in community expectations with ability to
provide services based on revenue.
Core Services
Core services are fundamental to a functioning city. They include attending to critical operations, ongoing
statutory responsibilities, and core functions that individuals, businesses, and organizations rely on to
survive and thrive. For instance, City provides for public health and safety through necessary infrastructure
for safe transportation. The City provides community policing to ensure an environment where community
members can safely engage in day-to-day activities. The City supports a public library that provides
community programming, services and safe places for everyone. Planning and Community Development
provides planning, permitting and inspections for needed housing services. All core services are managed
through the general government of the City. The City also provides for public health and safety through
necessary infrastructure like water and sewer systems and solid waste removal. These systems are
required to be self-sustaining through rates, so we are not considering them as core services as part of this
work.
Financial Sustainability Task Force Draft Report to City Council Page 9 of 31
Core services also underpin the success of all city departments and all other city initiatives. Simply put,
without core services, all other initiatives and services suddenly or eventually fail. For instance, the City
relies on functioning buildings and facilities — from the carpet to the roof — to ensure other services, from
police to permitting, can be provided. Historically, the City has not funded repair and replacement of key
building systems like replacement of roofs, HVAC systems, painting, elevators, and carpets. Therefore,
facilities needs arise as large surprise cost items every 20 years or so and either require emergency funding
or further deferral, often to the point of failure and subsequent disruption of the other systems under the
same roof that rely on those core services. Other examples of core service needs where deferral may
create significant risk or disruption from failure include cybersecurity and IT systems, fleet, financial audits,
public records management, human resource management, and union agreements.
Housing
Housing is vital to community prosperity. Multiple types of housing at many different affordability levels
was historically key to sustaining a healthy workforce contributing to the City's growth. However, over time
increasingly restrictive zoning practices in conjunction with inflation, high labor costs, and the 2008
recession has limited housing with trends towards larger market rate units. The City's population has only
grown to 10,000 people even though the pre -platted historic lots in the City were designed for more than
20,000 people.
Housing uniquely generates revenue in the form of property taxes, construction tax, and real estate excise
taxes, but there is little revenue from the City to reinvest or subsidize missing middle "attainable" housing,
which the City defines as affordable to those earning between 80-200% Area Median Income (AMI).
Adding more housing in a dense urban pattern can help reduce utility costs for ratepayers. The City has a
minimal source of money, $25,000 annually, generated from 0.1% of sales tax that helps fund affordable
housing and homeless housing programs targeting those earning less than 80% of area median income for
a family of four. The funding is pooled with money from Jefferson County and allocated through a Housing
Fund Board grant program and is insufficient to meet City affordable housing unit targets. There is no other
dedicated revenue source to support housing and the infrastructure (streets, sewer, water line extension)
needed for construction, particularly funding to help construct missing middle "attainable" housing.
Several tools described in this report as well as the White Paper Exploration of Strategies for Supporting
Infill and Affordable Housing Related to Infrastructure Development (link to draft report in the Appendix,
Section VI) could provide more funding such as an infill affordability strategy that links zoning reform
(already in progress) to in lieu density fee payments, which charge a fee for homes that do not meet
minimum density used to pay for middle housing infrastructure. The revenue source would need to
subsidize fee payment for affordable and middle housing, which would require a budget of $1.78 million
annually assuming $30,000 in fees waived per eligible unit.
The actual number of units that are supported will depend on the revenue and the amount of subsidy
needed per unit. As a program develops, success will depend on the City's ability to generate revenue to
meet the demands associated with the number of units requesting support. The primary method for the
City to provide this support is through the development of infrastructure, which is often lacking and a
fundamental requirement for the development of housing. In addition to supporting the development of
attainable units through subsidizing infrastructure, a second key housing strategy is to support housing
through the development of land. It is estimated that direct reoccurring investment in preparing City
property for neighborhood development such as the 150 -unit neighborhood the City is planning for Evans
Financial Sustainability Task Force Draft Report to City Council Page 10 of 31
Vista would require an enhanced budget of $442,000 per year. By supporting housing growth in a carefully
planned manner, the City can balance the development of private attainable housing to support middle
income and wage earner households and further support public or non-profit owned affordable housing.
This balance of providing diverse affordability options also impacts tax revenues since most social housing
is exempt from property tax. All housing provides the benefit of construction sales tax; however, the main
source of revenue to support housing likely comes in the form of fees. A common objective for all housing
is to prioritize density in order to reduce the overall tax and utility rate burden for the entire community
in an effort to facilitate a more sustainable future.
The City is developing a Comprehensive Streets Program in response to the rapid deterioration of the 81
miles of City -maintained streets. The current investment in streets of $1.2 million per year does not
include funds for preservation and repair of street surfaces or funds for matching grants. This pattern of
deficient investment has resulted in increasing debt and many streets falling into a state of disrepair that
requires complete and costly reconstruction. The City Council Infrastructure and Development Committee
reviewed options for street investments including a no -net loss alternative where an additional investment
of $750,000 per year maintains what we have but does not make improvements to the streets that are in
disrepair. The Infrastructure and Development Committee's preliminary evaluations recommends
increasing street investments by $1.5 million per year to a total of $2.7 million per year in order to claw
back the condition of city streets to a state of good repair. This claw back period is likely on the order of
30 years of sustained investment.
Parks
Port Townsend has continued to love its parks, recreation, and trail system. The City manages 190 acres of
publicly owned land, maintains and contracts operations for an old pool, hosts a nature park, maintains
two dog parks and 33 miles of public trails, contracts operations for a 9 -hole community golf course, hosts
the pickleball club with five permanent and more temporary courts, and enjoys a great collaboration with
Jefferson County Parks and Recreation. This is done on a minimal budget, about 1/3 rd of the nationwide
median for communities the size of Port Townsend. The City does not have dedicated funding for parks
and recreation. The general fund budget currently maintains all our parks and recreation assets along with
police, streets, and city administration. Funding in this manner is never guaranteed and must be approved
annually by City Council. Approximately $1M is spent currently to maintain what we have, contract the
pool and golf course operations, and work to keep our parks open. A budget of approximately $3M would
keep parks and playgrounds open, establish a capital program to take care of deferred maintenance and
replacements of tired assets. A budget of about $4.5M would be required to establish a Parks Department
dedicated to maintaining and enhancing the current level of service, including replacement of the current
Mountain View pool.
i.evell of Service
While nearly infinite interrelated choices exist to move forward in some way with financial sustainability,
there are three most basic scenarios for how to move forward. Each scenario is a pathway with particular
Financial Sustainability Task Force Draft Report to City Council Page 11 of .31
impacts to our community, both in the short and long-term. Each pathway results in a level of service for
those services and needs requested and required by our community, as described above.
Do Nothing Sustain Current Services Enhance Services
The first pathway is to do nothing. This means no new revenue and reductions of current service levels
since current funding does not keep pace with inflation and costs. While the City is required to balance a
budget each year, under the do nothing scenario, the current service level would drop significantly by 2029
as reserve funds would be utilized to plug the interim gaps (see chart below). This looks like a "fiscal cliff."
It means things like significant service cuts, cuts to hours, and cessation of certain functions currently
provided by the City, as the City is required by state law to balance the budget. The City has previously
made such service level reductions to balance the budget. As an example of the do nothing pathway, city
streets would continue deterioration and become worse over a short time period. This is largely because
revenues for streets fell significantly with the state initiatives of the late 1990s related to reduction of car
tabs. While some cities have developed new revenue sources in order to avoid a do nothing pathway, Port
Townsend has not yet developed new revenue sources for streets.
The second pathway is to sustain current services. This means "no net loss" of current services and yet
still requires an increase in investments to keep service levels constant. It likely means no new services,
but also no "fiscal cliff" like the do nothing pathway above. This pathway requires efficiencies, as do all of
them. Using the streets example, decay of city streets would slow and then mostly stop with sustained
investment, but they would not become better than they are today. This "sustain" pathway for streets
Financial Sustainability Task Force Draft Report to City Council Page 12 of .31
ENDING FUND BALANCE & PESERVETARGET
(Gelrelrei,
Streets, & REET, Corn Svcs, & Delft Funds)
Status Quo
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The second pathway is to sustain current services. This means "no net loss" of current services and yet
still requires an increase in investments to keep service levels constant. It likely means no new services,
but also no "fiscal cliff" like the do nothing pathway above. This pathway requires efficiencies, as do all of
them. Using the streets example, decay of city streets would slow and then mostly stop with sustained
investment, but they would not become better than they are today. This "sustain" pathway for streets
Financial Sustainability Task Force Draft Report to City Council Page 12 of .31
would require approximately $750,000 of new annual investment. At the City-wide scale, sustaining
current services would require an additional investment of approximately $4.9m above current funding
levels across all general government functions.
The third pathway is to enhance services. While efficiency continues to remain important and necessary
and there are trade-offs between desired services, new revenue allows for enhancement of services.
Increasing investments above the sustain services level allows the community to realize the vision that the
community desires. Using the streets example again, city streets would gradually improve over time,
eventually leading to a system -wide improvement over the coming decades. The approximate investment
beyond current levels to enhance streets is estimated to be $1.5m. Enhancing all general government
services results in an increase of $10.4m in revenue above the current funding levels. Overall, the
enhancement of services has been quantified by community feedback through development of a
Comprehensive Streets Program, exploration of housing initiatives, and evaluation of parks improvements
such as the Healthier Together initiative for a new pool, and the Envision the Golf Course discussion.
The following table illustrates approximations for various functions of general government. The three
columns of the table illustrate current investment levels, the level of investment to sustain services, and
the level of investment needed to enhance services. These figures are expressed in totals with the delta
provided at the bottom of the table.
Total $ 12,801,230 $ 17,764,722 $ 23,218,264
Increase in Revenue $ $ 4,963,492 $ 10,417,034
Financial Sustainability Task Force Draft Report to City Council Page 13 of .31
Bucket
Do Nothing
No net Loss
Funding Description
Current Inv.
Inc. Inv.
Inc. Inv.
Level of Service Impacts
Lower
Sustain
Increase
General Fund
Police
$
4,213,400
$
4,213,400
$
4,463,400
Finance / Inf. Technology
$
1,047,215
$
1,047,215
$
1,207,215
Legal/Clerk/Records
$
989,543
$
989,543
$
1,150,000
City Manager/City Council/Communications
$
393,000
$
393,000
$
658,000
Human Resources
$
475,072
$
475,072
$
510,072
Planning and Community Development
$
1,550,000
$
1,550,000
$
1,680,000
Fleet Replacement (Police, Parks, Eng., Admin, Fac.)
$
$
264,000
$
394,600
Facilities Repair and Replacement
$
$
395,492
$
612,97711111
Labor Inflation/Shortage/Vacancy
$
605,000
$
725,000
Pool
$
400,000
$
2,200,000
$
2,950,000
Parks
$
600,000
$
890,000
$
1,365,000
Streets
$
1,200,000
$
1,950,000
$
2,700,000
Library
$
$
300,000
$
450,000
Debt Service
$
1,700,000
$
1,700,000
$
1,700,000
Housing direct investment
$
62,00011111° $
442,000
$
442,000
Attainable Housing Incentive Program - Rev. Source
Impact fees and/or fee in lieu
$
40,000
$
100,000
$
1,780,000
Parking Management and Event Management
$
101,000
$
150,000
$
300,000
GIS programs (general fund services)
$
30,000
$
100,000
$
130,000
Total $ 12,801,230 $ 17,764,722 $ 23,218,264
Increase in Revenue $ $ 4,963,492 $ 10,417,034
Financial Sustainability Task Force Draft Report to City Council Page 13 of .31
Options and Il Balance
The three basic options above can also be considered as balanced trade-offs between three concepts:
growth, funding strategies, and level of service. For the second (sustain current services) and third
(enhance services) pathways, if new funding strategies are not pursued, the options are for a community
to focus on growth and/or reduce costs or find efficiencies:
uir..'i d li ii°i
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While the Task Force and this report does not take a direct stance on the current state and federal tax
policy or on growth, for better or worse, it is a growth -based tax system and growth is likely to happen
whether we direct it, plan it, or not. Thus, it often requires non -tax (growth) policies to achieve desired
outcomes
Efficiencies
Finding efficiencies is a critical element for any pathway forward. Not only does the landscape of service
provision continually change — demanding an ability to anticipate change and adapt accordingly — but
delivering value to our community simply requires a mindset of continual quality and process
improvement. To those ends, a few examples of City efficiencies in the past few years:
• Contracting for pool services
• Enhanced volunteer programs for parks and other areas in the city
• Online permitting
• Public Experience Liaisons and new City Hall front counter
• On-call permitting services
• Change to mowing
• Lean thinking
• Electronic City Council and Advisory Board materials
• Updated financial software and electronic payment options
Financial Sustainability Task Force Draft Report to City Council Page 14 of 31
The need for efficiencies is eternal; the above list only denotes an ongoing challenge, commitment, and
efforts to gain efficiencies and make best use of existing and future resources.
Criteria
The Task Force used six general criteria to evaluate a set of tax and non -tax revenue options. Those criteria
included:
• Magnitude. How much net revenue could this option generate?
• Growth: How is this revenue source expected to grow or decline in the future?
• Stability: How stable is this revenue source?
• Equity: How much does the revenue option align the burden of who pays with who benefits?
• Political feasibility: How politically feasible is the option?
• Restrictions/Alignment with needs: What can the revenue be used for? Can it meet the City's
needs?
As an exercise to help bolster the conversation and discussion, the Task Force used the criteria to evaluate
and score options. The tax and non -tax revenue options can be found in the Appendix (Section VI).
Financial Sustainability Task Force Draft Report to City Council Page 15 of 31
After review of copious materials, robust discussions, and applying criteria to various choices, the Task
Force has concluded that doing nothing is not an option. Thus, the following are two packages of inter-
related and interdependent tax and non -tax options to A) sustain current services and B) enhance services.
As of the current draft of this report, a suitable combination of strategies has not yet been identified that
is fully able to meet the funding requirements of the enhance services package.
Al:package A: Sustain Current Services
Core Services
Long-term general government (core services) are reliant on economic development strategies to increase
revenues in excess of inflation for financial sustainability. These include support of diverse commercial
growth as well as a possible future annexation of Glen Cove. Proposed strategies also include the
implementation of a parking management program, increasing the utility tax an additional 2% above the
current 2023 rate, and utilizing the banked capacity revenue. Even with these proposed strategies, the
City will not be able to sustain current services beyond 2030.
Revenue Option
Annual Amount
Note
Glen Cove Annexation
$680k
Est. to begin in 2030
Diverse Commercial Growth
$50k - $610k
Est. to begin in 2025; grows considerably
with commercial development
Planning -Fees for Services
$100k
Est. to begin in 2025
Parking Management Program
$150k net
Est. to begin in 2025
Utility Tax-Councilmanic
$152k
Raise to 24% effective rate (includes
continuing 2% for Parks)
Infill Development Strategy
$95k
Est. to begin in 2025
Multi -family development—
Sales Tax
$76k
Est. to begin in 2025
Multi -family development-
Property Tax
$7k
Est. to begin in 2025
Banked Capacity
$900k
Est. to begin in 2024; unrestricted use
Total Revenue Options
$2.21m - $2.77m
A2: Comprehensive Streets
A comprehensive streets program requires identifying a new revenue source in order to begin the process
of rebuilding our street infrastructure. Proposed strategies include implementing a Transportation Benefit
District funded through sales tax. Additional strategies include Fees for Services, Fee in lieu or Impact Fees
and Real Estate Excise Tax (REET) for federal or state grants. With this funding package, the City would be
able to meet the financial objective to sustain current services.
Financial Sustainability Task Force Draft Report to City Council Page 16 of 31
Revenue Option
Annual Amount
Note
Transportation Benefit District
(TBD) Sales Tax 0.1%
$225k
Councilmanic
Est. to begin January 1, 2024
Transportation Benefit District
(TBD) Sales Tax 0.2%
$550k
Voted
Est. to begin April 1, 2024
Real Estate Excise Tax (REET)
$100k
Est. to begin in 2025; For grant match
Fees for Service (Permit fees)
$85k
Est. to begin in 2024
Fee in lieu of or Impact Fees
$100k
Est. to begin in 2024
Total Revenue Options
$1.06m
A3: Parks
Long-term operations of the Parks and Trails system rely on general government revenues. Additional
proposed revenues include the future Glen Cove annexation, reinstatement of the dedicated 2% Utility
Tax for Parks, creating Impact Fees and establishing a Parks Foundation that would encourage legacy
donations as well as public / private partnerships. With these additional funding options, the City's Parks
and Trails will remain reliant on general government revenues and are not able to sustain current services
independently.
Revenue Option
Annual Amount
Note
Glen Cove Annexation
$13k
Est. to begin in 2030
Utility Tax-Councilmanic
$152k
Reinstate 2% Utility Tax set to expire
December 31, 2023
Parks Foundation
$100k
Est. to begin in 2024
Impact Fees
$100k
Est. to begin in 2024
Total Revenue Options
$365k
A4: Pool
The Mountain View pool is beyond its useful life and will require the full support of the community and
region to establish a new funding source to replace the existing pool. The proposed strategy is to establish
a Metropolitan Parks District (MPD) through an additional property tax levy. Other proposed revenues
include establishing Fees for Services. With this funding option, the City and partners would be able to
build and sustain a pool similar to the existing pool.
Revenue Option
Annual Amount
Note
Metropolitan Parks District
(MPD) (.50 per 1,000) Regional
District
$2.6m
Voted
Est. to begin in 2025
Fees for Services
$450k
Est. to begin in 2025
Total Revenue Options
$3.05m
Financial Sustainability Task Force Draft Report to City Council Page 17 of .31
A5: Affordable Housing
Developing a program for Affordable Housing requires establishing new revenue sources and policies that
that will be dedicated to the creation of both affordable and attainable housing. Proposed strategies
include the creation of In Lieu Fees (at $5,000/unit) for housing units greater than above market rate,
obtaining affordable housing grants and the sale of City property to provide a direct investment in housing.
The sale of City property is a limited resource as it is dependent on available land inventory. These
proposed resources do not adequately provide for the level of housing required to sustain the City's
workforce housing needs.
Revenue Option
Annual Amount
Note
In Lieu fees ($5,000 per unit for
above market units)
$150k
Est. to begin in 2025
Affordable Housing Grants
$500k
Est. to begin in 2026
Sale of property—to support
direct investment in housing
$500k
Est. to begin in 2025
Limited City resource, dependent upon
available land inventory
Total Revenue Options
$1.15m
A6: Library Operations
Long-term library operations are reliant on general property tax revenues as the primary revenue source
to sustain services. Strategies are limited to increase revenues that keep pace with inflation for financial
sustainability.
Revenue Option
Annual Amount
Note
Levy Lid Lift (.10 per 1,000) City
Only
$260k
Voted
Est. to begin in 2027
Total Revenue Options
$260k
Financial Sustainability Task Force Draft Report to City Council Page 18 of 31
package B: El�in�haince Services
1131: Core Services
Long-term general government (core services) are reliant on economic development strategies in both
packages to increase revenues in excess of inflation for financial sustainability. These include support of
diverse commercial growth as well as a possible future annexation of Glen Cove. Proposed strategies also
include the implementation of a parking management program, increasing the utility tax an additional 2%
above the current 2023 rate, and utilizing the banked capacity revenue. Even with these proposed
strategies, the City will not be able to sustain current services beyond 2030.
Revenue Option
Annual Amount
Note
Glen Cove Annexation
$680k
Est. to begin in 2030
Diverse Commercial Growth
$50k - $610k
Est. to begin in 2025; grows considerably
with commercial development
Planning -Fees for Services
$100k
Est. to begin in 2025
Parking Management Program
$150k net
Est. to begin in 2025
Utility Tax-Councilmanic
$152k
Raise to 24% effective rate (includes
continuing 2% for Parks)
Infill Development Strategy
$95k
Est. to begin in 2025
Multi -family development—
Sales Tax
$76k
Est. to begin in 2025
Multi -family development-
Property Tax
$7k
Est. to begin in 2025
Banked Capacity
$900k
Est. to begin in 2024; unrestricted use
Total Revenue Options
$2.21m - $2.77m
62: Comprehensive Streets
A comprehensive streets program requires identifying a new revenue source in order to begin the process
of rebuilding our street infrastructure. Proposed strategies include implementing a Transportation Benefit
District funded through sales tax. Additional strategies include Fees for Services, Fee in lieu or Impact Fees,
Real Estate Excise Tax (REET) for federal or state grants, and Lodging Tax. Even with this funding package,
the City would not yet be able to fully meet the financial objective to enhance current services.
Revenue Option
Annual Amount
Note
Transportation Benefit District
(TBD) Sales Tax 0.1%
$225k
Councilmanic
Est. to begin January 1, 2024
Transportation Benefit District
(TBD) Sales Tax 0.2%
$550k
Voted
Est. to begin April 1, 2024
Real Estate Excise Tax (REET)
$100k
Est. to begin in 2025; For grant match
Fees for Service (Permit fees)
$85k
Est. to begin in 2024
Fee in lieu of or Impact Fees
$100k
Est. to begin in 2024
Lodging Tax
$20k
For Place Making/Tourism
Est. to begin in 2024
Total Revenue Options
$1.08m
Financial Sustainability Task Force Draft Report to City Council Page 19 of .31
B3: Parks
Long-term operations of the Parks and Trails system rely on general government revenues. Additional
proposed revenues include the future Glen Cove annexation, reinstatement of the dedicated 2% utility tax
for parks, creating impact fees, using Real Estate Excise Tax (REET) and establishing a Parks Foundation that
would encourage legacy donations as well as public / private partnerships. With these additional funding
options, the City's Parks and Trails will remain reliant on general government revenues and are not able to
sustain current services independently.
Revenue Option
Annual Amount
Note
Glen Cove Annexation
$13k
Est. to begin in 2030
Utility Tax-Councilmanic
$152k
Reinstate 2% Utility Tax set to expire
December 31, 2023
Parks Foundation
$100k
Est. to begin in 2024
Impact Fees
$100k
Est. to begin in 2024
Real Estate Excise Tax (REET)
$100k
Est. to begin in 2025; For grant match
Total Revenue Options
$465k
64: Pool
The Mountain View pool is beyond its useful life and will require the full support of the community and
region to establish a new funding source to replace the existing pool. The proposed strategy is to establish
a Metropolitan Parks District (MPD) through an additional property tax levy. Other proposed revenues
include establishing Fees for Services. With this funding option, the City and partners would be able to
build and sustain a pool with modest enhancements to the existing pool (e.g., regulation length lanes).
Revenue Option
Annual Amount
Note
Metropolitan Parks District
(MPD) (.75 per 1,000) Regional
District
$3.9m
Voted
Est. to begin in 2025
Fees for Services
$450k
Est. to begin in 2025
Total Revenue Options
$4.35m
65: Affordable Housing
Developing a program for Affordable Housing requires establishing new revenue sources and policies that
that will be dedicated to the creation of both affordable and attainable housing. Proposed strategies
include the creation of significant In Lieu Fees (greater than the sustain package at $50,000/unit) for
housing units greater than above market rate, obtaining affordable housing grants and the sale of City
property to provide a direct investment in housing. The sale of City property is a limited resource as it is
dependent on available land inventory. These proposed resources do not adequately provide for the level
of housing required to sustain the City's workforce housing needs.
Financial Sustainability Task Force Draft Report to City Council Page 20 of 31
Revenue Option
Annual Amount
Note
In Lieu fees ($50,000 per unit
for above market units)
$1.5m
Est. to begin in 2025
Affordable Housing Grants
$500k
Est. to begin in 2026
Sale of property—to support
direct investment in housing
$500k
Est. to begin in 2025
Limited City resource, dependent upon
available land inventory
Total Revenue Options
$2.5m
1136: Library Operations
Long term Library Operations are reliant on general property tax revenues as the primary revenue source
to sustain services or to provide increased level of services or programs. Strategies are limited to increase
revenues that keep pace with inflation for financial sustainability.
Revenue Option
Annual Amount
Note
Levy Lid Lift (.10 per 1,000) City
Only
$260k
Voted
Est. to begin in 2027
Additional Levy Lid Lift (.10 per
1,000) City Only
$260k
Voted
Est. to begin in 2025
Total Revenue Options
$520k
Financial Sustainability Task Force Draft Report to City Council Page 21 of 31
V. ("ondusion/Next Steps
This section is forthcoming. We anticipate it to include:
• Areas still under development. Where are there still areas where we do not meet desired funding
levels and why?
• Timeline and milestones. When are key decisions over multiple months and years? How does this
report work itself into the 2024 workplan and beyond? Is there a corresponding implementation
matrix that firms up based on further Task Force conversations/direction and City Council
feedback?
• Call to action/engagement. How can community members get involved? What visual elements
from existing engagement like the videos can be repeated/underscored here?
• Concluding message. Recap of why this initiative is important and reiterate a positive, sustainable,
collaborative future for all in our community.
Financial Sustainability Task Force Draft Report to City Council Page 22 of 31
M. Appendix
Select Figs k Force Background Materials
A selection of slides from the Task Force meetings is below. For a full set of agendas, minutes, presentation
materials, and video recordings, visit: https://citvofpt.us/engagept/page/financial-sustainability-initiative.
BOOM=
NI The bUdget is ai-i econiornic plain that fOCLises the ei-itity's finarlciall
and hurnan resourcleg on the accoirriphshirrient of specific goals and
objectives established bythe policy malleirs,
NI The bUdget estaHishes the aniival rever)Ue and experdituire levelk,
cafled appropiriations, fIcn, dejpanlirnents and furds.
NI A city bUdclet i-nust be baanced: revenues 'a expenditures
NI Ponl Towi-isend Currently operates on can anrt,4l budget and aH
appropriitioiis are for that calendar year allone.
SEII PIROVIDED BY-HIECITY
Development Services: Planning,
permitting, inspections
General Government: City
management, Ilegall services, finance,
human resources, IT
Lilbral Library services
Parks, Recreation & Community
Services.- Park maintenance, recreational
activities
police: Plubllic safety services
PublicWorks. Maintenance of physical
infrastructure and transportation systems
Solid Waste: Garbage and recycling
services
Water/Sewer:Difinking wateir, sewer
treatment services
III Lega�l requireirnent
III Azcoiuntabfllity arid
trarisj:)arericy
How the City spends taxpayer
and ratepayer money
Sh2iring accornplishrnents
. Performance evaluation
. Performance measures
III Mariagementtodl
III Plarinirig JOCILM,ient
SERVICES IPROMIDIED IBY AEFFIMISON COUNTY
Assessor: Assessment of real property
Economic Development: Business attraction and retention
Emergency Mlanagemeniti IDiisaste,r planning, mitigation, and recovery
Environmental Public Health. Water quality maintenance, IDneservation of open
space, IDer-miffing of Yvaste systems
Municipall Court. Processing of cases and collection of fines
Public Health. COMMUPICIBIDle disease, management, family health serviire,s
SEIRVICIES PROVIDED 13YOTHER ENTITIES
Electricity (via Jefferson County PUID)
Fire prevention aindl emergency response (via East Jefferson Fire and Rescue)
K-11 2education (via Port Townsend School District)
Port maintenance (via Port of Port Townsend)
Public transit (via Jefferson Transit Authority)
911 services (v i a Jeff,(,- onl
Financial Sustainability Task Force Draft Report to City Council Page 23 of .31
EM
Police
Pull-flic Works
Porky, Recreation, cHid Community &ervices
Mcuming and Communiy Develr,>l',)meint
U111 Ory
A,clmini,ore..,wtion, Finance, and IHR
Stotebf'WA
6.40%
70%
$6.,40
Cn Fort Townsend
0.98%
11%
$0.98
J 06 rs o n Tr a ns it, A u t h o r ity
0,190%
$0„90
Jefferson, County
0.,73%
8%
$0.73
JeffCom
10101%
1 %
$0. 110
TotalTax Rate
9.10%
100%
$9.10
Financial Sustainability Task Force Draft Report to City Council Page 24 of .31
State, Levies (School)
L cad hool
City of Port'Townsend
County CLJ.rir,ent Expense*
Hire D tris f
Part of Townsend
Emer,gen,cy Medical Services
Pubhc Utility Di trlict
Hospital Dstr ct
Total
,$2.734
8
$820
$2.026
21%
$608
$1.5678
16%,
$30
$1.21.78
13%
$128
$0.999
10
1
$0.521
%
$47'0
$0.425;
%
$156
$0.0815
1%
$0:0399
A
$365
$9.6120, 120
100%**
$2,884
'includes Mental IHeelth, Veteran's Relief, DevellojD rental Disalailities
"Totals May rIOt SUM tri 100% due to rounding
IIII Leven of service is a fWI tired of 2 I[DdlMary factors:
The arnouint of servk-es pairuavi rrl (w Ioiu-lo is in tuii a rr fi_aIrjjj-
'tiujrj of the cost of service an ,,] the budget for serices)
The number of people r_envh ucp rir�iuves,
IIINI Parks exai nlslle::
1,000 acres of parkland 100,100 resident-, 110 acres per 1,000 residents
1,000 acres of parkland 125,000 residents 8 acres pear 1,000 resiideints
Keyfelllr:eawaye Illuncuivasoiun rlllw # imesi euitts uieceiiiviiiuut seuu°voices WiflIOLA iiincireasiiing, r,llly
atyvevtuiat of seuiwuicee llxii�'ovWed decireasesyllive Illlevvelll of seui°°vvoice t ui° rlllhe e uusuiTittiniiy .
�4
Financial Sustainability Task Force Draft Report to City Council Page 25 of .31
IIII oil 110.1
Mal
SERVICES PIROV]DED HY"rHIE CITY
SEII PIROVIC111M BY AEFFIERSON COUNTY
Development Services: Planning,
Assessor: Assessment of real property
permitting, inspections
Economic Development. Business attraction and retention
General Government: City
Emergency Management: Disaster planning, mitigation, and recovery
management, Ilegall services, finance,
Environmental Public Health: Water quality maintenance, preservation of open
huiman resources, IT
space, per -miffing ofvwaste systems
Library. Library services
Municipal Court. Processing of cases and colllection of fines
IParks., Recreation & Community
Public Health: Communicable disease management, family health services,
Services: Park maintenance, irecreationall
activities
SIEII MOVIII 113YOT11I EiiI
Police. public safety services
Public Works. Maintenance of physical
Electricity (via Jefferson County PUD)
infrastructure and transportation systems
Fire prevention and emergency response (via East Jefferson Fire and Rescue)
Solid Waste. Garbage and recycling
K-112 education (via Port Tovirsend School District)
services
Part maintenance (via Port of Port Townsend)
Water/Sewer: IDriniking water, sewer
Public transit (vis Jefferson Transit Authority)
treatment services
911 services Rvia Jeff(--om)
11MIM4111MMMINIMBIWAN
FOMITTt nM
Police
Pul-Aill: Works
Pomks, Recrerific,ii, ond Conirnunity Services
Manning and Conirnunity D eve I cq,)n-tent
tilal (v Y
Adyninkstration, Firionce, cind I
FUNDING STRATEGIES AND PEER CITIES
on
Anacortes Yes Yes Yes**
Leavenworth Yes Part of a park Yes
service area
Port Orchard Yes Yes
Port Townsend Yes Yes
Pbulsbo Yes Yes Yes
Sequirn, Part of a park Yes Yes
district
Financial Sustainability Task Force Draft Report to City Council Page 26 of .31
Select Fax and Noin-,I�)(Reveintge l'.)pfirlms
General Purpose Tax Revenue Options
General Purpi
'r.p., ty tax
increase
- temporary,
P—ran."t cu
mrited purpose
Water, Sewer &
Stormomatei
Utility tax
increases
Electric and
Telephone
B&O Tax
General Purpose Non -Tax Revenue Options
General Purpo
Charge lease nines
for City Sauce at
Mtn. View/City
Hall
Increase reserve
forscl balance
requirements,
Re -instate Meet
Peplacernent
Reserves . ith ane
time funds
Estai a Facilities
Repair Reserye
with one time funds
Currant ant subsidy
supports --mis,
Sustainable Services
and C.,nm.i
Sustainable Seryces
and C.—nity
Sustainable Ser,ces
and C.,nmurtity
Financial Sustainability Task Force Draft Report to City Council Page 27 of 31
General Purpose Non -Tax Revenue Options (continued)
Transportation, Roads, Trails, Tax Revenue Options
Transpor to lion
Benefit District Could fund no -net loss or,
sales, fax —huncroo—nix
No sing, r" g—e-j
f I b
Sales tax available
G 0 years with
indefinite number of
renewals
Impacts all
pri,ch—s
May r'equir'e voter,
app—al
For transportation
protects
In. of loscil ont-11 and
"
--j- fund. C..ld be
Transportation
WoAd grow with
Can be
Could fund no -net loss or
Op—honsid and
C-4.0 iod—d ,,-ke, F-
.—,e ffick.ont, b.t rroy
For transportation
Benefit District
enhoncinerreirls
0.1% $275,000 increased ecorionrc
indefinite number of
m. y c' t I-
Ngi—ing oubrus (oe' -11
I -e l"'al o'ut"A and
sales tax
No, A o.ffi
C Ind, of
C"'.'il ."d C Ity
In rin.gil Ma Y i hrtawm
Service, niw,,ud� Snill req--
public pr . -ss ass,,cion-1
N/A
lalb.,
n."M" f"' 'nly
d—,ol—
en'#
nionsige.ment.
rfl, key featriore, like non,
given keP
pe.cffic Froblenrc
rud-hug ...
in pubhr
n-fi,oced toorp-toH,,n
Sarre fee for all
For tran,l—trati—
Benefit i
enhanciriene"Is
-ba, rind
n—i fl—l'
in, � o—,
Al- .,,.Id reqw,r,
inill il
projects
vehicle license fee
-n.& concrg(o-).
'..
renewals
Son— O—rho.d.
$5,000/hcu5ing unit x,i Growth could be
S ng, —deternrined-
50 units per year = reduced by attainable
Ope-t-noui andt.fl.,ed
mcn, For
Nor fikely . c t —ing
C—can, lark ct
-Y >tt be
4", P"'g-on, A.
N.q W. A staffing
For culoil.1 pioicls
Co."oll ssnd Courry
or "W, May h
at
coot f..d(Still rrjui
nio-rog—erit.
isislorf'c F-ser—fi..
N/A
give,, ob- cus,ket
."ufl dl Y
ddfl—
nr'.1igI."ew
in P"[A"
'Nufl—t—I
specific to the fee
- To ari,p-totran
housing gooL
would need to be market rate (75 pervoter
strategy is achieved.
Ii uol and
approval
Sri— o—h-A
rur.& 9".k.
................ . ...........................................................................
justified by study for year), then growth in
......................................
.................
Olp.,an.oai end
ti g, rnd.fnv,od
be
C—i-C p"lice
Req.ire, ..dysa So.
C.n,e,n .-r lack f
n"ry
Rurol ,
N', g".'unt", "I Ocrffioont��
Could fund no -net loss or
( it cnd C.—ty
toro hro—
'�kro� P"h6ug
—c"hood, quJisn—ni, ciml
N/A
gr,en obo, rcoudi
an—fl,", l", drydk':C.Iblc:al'Y
INN 6a I's l
g
I,,il C..
other puiernal
enhancri-renents
Improvement plan
pc,ofic p-ble.-
owners
approval
specific to the bond
b tween .,ban and
.............................................................
.....................................
...............................
.......................................................................
----------------------------
------- va'gLMA! "6�
cl--d
a,l., dW
W �j
Delcunarter report,
Wotid resift o .
(CLEO Corperative
gap of
eo 5400k d con.unilly
libercern,u4
C u,00 .Ioro,y on" ... tl,.i of PI
.service, - Lib,cry
b—ol "n t—ing —tir'sty
S-wouti f"o 6". City
finan—, Mony oi be
Mairroms access for
C c'ol -1
Clyu'po'�� oliqns fk�
f City and
C --fly, no g--1
N/A
Jeffe—on County
County to Inff—,", C"unty
fucd ,,b,Ay of Ike
suunicabW fo, library
Lii,ra,ol
y —ia,u,
(ii—od,
uty by "o'king
hin—Y Library
(Noub- 200 t)
lob -,y In Vh, Uu," may
t::,j +*ff 90 , rike
I —'rel— 'e-oc—
require general fund
for -runuonly
confilbur-, due to,
hl
M.,y I -Ir, so.mlr rook
Majorhak" coc—", li.,
ror.offlen—c,
C 1,-t Pcirk Ab-ni cvea tong a irierso,
Savings coi r—At in u,,
$.o.oncibl,- f,o til Cny
you� Cono,--n
dc,,fidecd Could
pcork, dimoa, c—ld
nc asr in P—Monal
Cxil -d C.-ty
S—w— -
"A" "Hici'y of
0sAs— e Sl per
N/A
finco-o, Mny mA be
ability h, Ill
ile"ni"r,
-p-d
J�ll Co.
vustcun.Woe fi,r po,ks_
n—, park,, or, fl- ay
a, C- F.
--tic-ul
po,cr#,000e% -nfi
Jeffe—c C_
Transportation, Roads, Trails, Tax Revenue Options
Transpor to lion
Benefit District Could fund no -net loss or,
sales, fax —huncroo—nix
Wouild grow with
0.2% $550,000 increased eased economic
development
Sales tax available
G 0 years with
indefinite number of
renewals
Impacts all
pri,ch—s
May r'equir'e voter,
app—al
For transportation
protects
Sales tax available
Transportation
WoAd grow with
Can be
Could fund no -net loss or
far ➢ 0 years will
Impacts all
For transportation
Benefit District
enhoncinerreirls
0.1% $275,000 increased ecorionrc
indefinite number of
purchases
implemented without
Fir oJects
sales tax
renewals
t., ppr ... I
Sales lax available
I ransportclion
Can be
Could fund no -net loss or
Won Id grow with more
for 10 year s with
Sarre fee for all
For tran,l—trati—
Benefit i
enhanciriene"Is
$20 fee — $186,000
vehicles registered
indefinite number of
vehid- owners
inill il
projects
vehicle license fee
voter approval
'..
renewals
$5,000/hcu5ing unit x,i Growth could be
50 units per year = reduced by attainable
$250,000 per year housing InceMtive
For culoil.1 pioicls
Impact Fees sti ateVy to
current levels of program for additional
Can be
Impact Fees
hr.ve attainable
develornent. $5,000 units. If all new units are
Ongoing until
Inrpcicts specific
implemented without
specific to the fee
- To ari,p-totran
housing gooL
would need to be market rate (75 pervoter
strategy is achieved.
s."
approval
(Ir—org, streets,
parks)
justified by study for year), then growth in
nor -motorized --nue goes up to
facilitte, $375,000.
Improves and
Could fund no -net loss or
Based on Capital
Impacts all property
Requires voter
For Loptol propch
Capital Bond
One time money
maintains
enhancri-renents
Improvement plan
infrastructure
owners
approval
specific to the bond
Financial Sustainability Task Force Draft Report to City Council Page 28 of 31
Parks, Pools, Public Facilities Tax Revenue Options
Metropolitan Fork
Dist, id
Could fund no-net loss or $0.75 per $1,000 =
Subject to 1%
Ongoing
Impacts all property
Requires vc,nm
Far park projects
enhancfrnlone^nt°w �$1,60U,0f,�
brktgetary gYawtl7
owners
fippKavo
Property tax
'..
Subject IQ I%
Parks and
Could fund no-net loss or
I Pacts, all property
Requires voter
For parks services,
Recreatdon 6Rstrfctt
b year levy
enhancemenents
budgetar y growth;
Limited to 6 years
owners
approval
Ilmred term
'
limited to 6 years
Parks, and
Subject to 1 %.........
Could fund no-net loss or
Impacts all property
Requires vbtcr
For parks services,
Recreations Service
6 year levy
e11hGrlCenien@nt5
budgetary growth;
Limited to 6 yearA
Ow15er5
approval
(Im1ed farm
lnrea
i
limited to 6 years
Pubjic Foddlities
would grow with
Could fund no-net lass or
Impacts all
Requires voter
For a regional
District
0.21 = $550,000
increased economic
01enhancemenents
sales tax
'
development
purchases
approval
facility
C
',.. $5,000111VUSIng unit %
Growth could be
50 units per year =
reduced by a'tta b11676 @
$250,000 per year
housing incentive
For capital projects
Irnpact Fees
Impact Fccs strategy to current levels of
IF, gram for additional
Can be
Parks /Open
achieve aroorrabje develoment. $5,000
units, If all new units arcImplemented
OngoingUntl'ul
IrnpactlS SIYeC'iflC'
without
speG'uflc to the foe
strategy is achieved,
users
[housing, streets,Sp
Gee
pausing goal. needI,, would need to be
''....
mcn�kat rata 175 per
vote, approvcnl
parks)
justified by study for
year), then growth in
''....... non-rriotorired
r-onup goes up to
''.. facilities
$375,000.
Current fees. $1001,
Current cost to run
Can be
Fees must be Gltr' bated
Impacts 5IYeC'if lC'
l'
Specific foO&M of
Pool Use fees
existing (Tool, $600k
directly to user
would grow with use
Ongoing
users
Implemented without
faci0'ity
Vbte1' Clppl'bvC1
''.,. Increase fee,, $1001,
Housing Tax Revenue Options
Financial Sustainability Task Force Draft Report to City Council Page 29 of 31
Housing Tax Non -Revenue Options
Ong, �,narsl ,,, Continued development of provides.
needed -
ti
City inticrti,od 1.", , ,.,no warkfarce
,n,
Inflationary tionry 9, —th attainable focusing is to attainable housing. Require., C-rocil Support., " iti
housing lEvamv Provides housinq housing = $15,000/yr for p.t.noi.l. Also there .cl far a —tainicil Ni or, .4 pausing. .1i containable housing
yst.) 150 unrin, Other ucm one timr, I- revenue 'o munity IRD eed'
tangible community value
Red-. renmant Estimated market value
Could be fur affordable
$2,000,000 bas -1 an
Sale of Land
—n-4,in potentially far
Will Dv.I..p.nt
housing _'I t' d 20 10s with net
No growth p.ricurtal
-1- of $ 100,000
housing.
Expansion of sewer far 100 aoros ox isting
include fin."'i"l,
housing and industry.
Equitable
cfi,mr.l. P.1cont6i to
P.I.Mial UGA -1p.
Olen Cove UGA -
300 ..... .. I'liti.n.11
More efficient wilbron
coming P011CY, le
housing and light industry.
Expansion
services hosed on Estimol ed annual S 1 nor in
Perceived g&nTrlfkoIln
o,sisting d ... cipuniont
tactical infill
revenue growth a- 20
pattern, and squosmucto
for 100 miles of ,ccer,
you, period
Ong, �,narsl ,,, Continued development of provides.
needed -
ti
City inticrti,od 1.", , ,.,no warkfarce
,n,
Inflationary tionry 9, —th attainable focusing is to attainable housing. Require., C-rocil Support., " iti
housing lEvamv Provides housinq housing = $15,000/yr for p.t.noi.l. Also there .cl far a —tainicil Ni or, .4 pausing. .1i containable housing
yst.) 150 unrin, Other ucm one timr, I- revenue 'o munity IRD eed'
tangible community value
Lowers tax burden on
Could be fur affordable
Council decision,
Seed fund or use
residents Infrastructure.
Est $330,000 per year for
Will Dv.I..p.nt
iss"'ghb., hcri
No growth p.ricurtal
One to.e
housing.
to ll for ff.rd.blo
,cancer,:,strategy
include fin."'i"l,
for -ad 1400 unit,
Equitable
housing
right naw b-- of
li is or density to.
coming P011CY, le
considered ,
burden uc,du,ficus at 20%
Apartment, "," all
Perceived g&nTrlfkoIln
ionve'lu,ent is
tactical infill
High growth potential with
for 100 miles of ,ccer,
Requires C.-ty
(C., now, unit count per
wifify t-, R&O, sales, and
with incl eeasar business
Cost I. our
and City C. -i
G'O.Al with time
piroperl tax, Need
business could inc
Requires
pproval, Requires Sul ts ll
wbintea plan to drive
UGA
UGA change and jobs
density f., most fircert
with ul 5ervices.
Also pi f.
app, -d by
,stages
more family wage jobs,
C...—
Ong, �,narsl ,,, Continued development of provides.
needed -
ti
City inticrti,od 1.", , ,.,no warkfarce
,n,
Inflationary tionry 9, —th attainable focusing is to attainable housing. Require., C-rocil Support., " iti
housing lEvamv Provides housinq housing = $15,000/yr for p.t.noi.l. Also there .cl far a —tainicil Ni or, .4 pausing. .1i containable housing
yst.) 150 unrin, Other ucm one timr, I- revenue 'o munity IRD eed'
tangible community value
fatal 'j'_5 oorni
11sity is $450 mo for the
P—lds, new and dAy at $ 1.3 rori of
Sul close". "ddifi-cri Job,. Make, commercial tend space
Corn�mercra11 use of -um."Aly f325 ac- .
Business Growth .-d P, l Vitality Far Example Room, to
In —ni dri 1.1nori—i"I
supports better services. cxvity on Land by 20%
which gsur.rci $640k
.ddirricural sr¢lrrual ...muse.
High level of stutcrincibo if
housing I, mfill —pared Conical nerd far
to 'p'a`,L On going
backlog Won, l
going with Infill is q.t.blos. Could Plaroniti
Ye,,, d.pendmig air new jugr 11 ude l".9, requires
toPl., -ri
0 needs, dirso.l., and
d.uy end 11 vary withk d
gfl�a
ons achieve attinable Commission and City
roraw
cal -city to build. "fi.structure
and i,mdio Need to housing needs. Cannot —i—rcol
address building cyd.
Problem.
Cy6k, based ori economy.
However, on ,". very
Go can -a,
Lowers tax burden on
depending community
state fax structure.
residents Infrastructure.
Est $330,000 per year for
Will Dv.I..p.nt
We need 75 units per
new _surn. ss.,I.t.d
Snw.gy
year or 'o—oors going
wirfY C6RY51rt1C'tiGl'I 44'11@Y5 Y('1%
include fin."'i"l,
for -ad 1400 unit,
und pir.p..,Ity to, Ake,
marketing and
right naw b-- of
li is or density to.
coming P011CY, le
b.'l'ag of not enough
burden uc,du,ficus at 20%
Apartment, "," all
..of, being ,unuotud
ionve'lu,ent is
tactical infill
t ver the last 20 yeu-
for 100 miles of ,ccer,
Is2 o.bisfied as th.
(C., now, unit count per
and
lu'd lablW 1".
year is 50)
fatal 'j'_5 oorni
11sity is $450 mo for the
P—lds, new and dAy at $ 1.3 rori of
Sul close". "ddifi-cri Job,. Make, commercial tend space
Corn�mercra11 use of -um."Aly f325 ac- .
Business Growth .-d P, l Vitality Far Example Room, to
In —ni dri 1.1nori—i"I
supports better services. cxvity on Land by 20%
which gsur.rci $640k
.ddirricural sr¢lrrual ...muse.
High level of stutcrincibo if
housing I, mfill —pared Conical nerd far
to 'p'a`,L On going
backlog Won, l
going with Infill is q.t.blos. Could Plaroniti
Ye,,, d.pendmig air new jugr 11 ude l".9, requires
toPl., -ri
0 needs, dirso.l., and
d.uy end 11 vary withk d
gfl�a
ons achieve attinable Commission and City
roraw
cal -city to build. "fi.structure
and i,mdio Need to housing needs. Cannot —i—rcol
address building cyd.
Problem.
Cy6k, based ori economy.
However, on ,". very
Go can -a,
sustainable based on WA
depending community
state fax structure.
cir-fifo. far increasing
Carni usfivity is what
Z—Ing is the key
Depends a, job type,
l criclivity and
delves c loy,
-l Lodi-eing
This oni prof—l-al
t—l-, small
bumiro—, manufacturing,
.11.
R.ac, dedicated
,d
� "
,crying 1.1, with in-Aryout in � communify needs is
economic
development and the key strategy crt.qy for
Iscuarng I growth.
Financial Sustainability Task Force Draft Report to City Council Page 30 of 31
i W—I of rvike
Hug. improvement in
Z—Ing is the key
Iri return ,,,
High revenue potential for
High gfowth potential
equity ii housing.
Support Market
for housing and
market at. 'i,carmi
if MF development can
Creates long term finciri
Apartment, "," all
driver far moking,
ionve'lu,ent is
M.1hol—ly Housing
"I"u'l—nin. due 1.
due to ulolus, t—, i tax,
Is2 o.bisfied as th.
'usr.muil' City for "i
f—pl. of diff—ort
lu'd lablW 1".
coport"."t
Islaxonn", d"i
and property tax r. -n—
incurnn for unit ar—ton.
of life and don't
51
"i nui
,stages
C,,unil de,nrorr
To-,
ch -....not..
Reduce or
I 1.11P., WA Yal1S111g
Not estimated yet. May
Equitable use of fle
eliminate if-otoriedt
density, J- eases cost of
be a net zero of housing
Depends on housing
N/A
right of way for housing
Council deason
Growth dotentalfor
parking
density d.visopmourt
housing density
TquhementS
sf,00t,uMntenanco
dorulty Is achieved.
par is ... 5
Goal to m—ini
development of new
altairobl. uut5. We
growth pauc,rildl f.,
150% AMI Muhl
lin—ec,ise anal nabifirty of
oevonno rouritral , but
need 60% of all is—
M-kilog and
lociu'Mg – >1 176
Family To.
hcu"u'v 1, .", 120% 1.
un"If.'s i fax
unit,, be attainable
N/A
Make, bar j o,rablo
""ay
elli ui out of
150% AMI qualified
costs to rest of property
far more people.
ExemptionFii
h—oll
tax base
de'vI.'I.pm.mi
I 4AB units needed
(lased
Based an Dept. of
by 2044
C.-mence 20 y,
J" ol-Imit
Financial Sustainability Task Force Draft Report to City Council Page 30 of 31
Select IResources of itelevalince
White Paper: Exploration of Strategies for Supporting Infill and Affordable Housing Related to
Infrastructure Development
City staff produced a white paper that is related in particular to the housing component and briefly
referenced in the report above. The draft white paper, dated May 3, 2023, and presented to the City
Council Infrastructure and Development Committee, can be found here:
https://cityofPt.granicus.com/M eta Viewer. php?view id=4&clip id=2663&meta id=215676
Housing Initiatives
A general overview of City housing initiatives can be found here:
https://citvofpt.us/engagept/page/housing.
Streets Initiatives: Comprehensive Streets Program
A general overview of City streets initiatives, including the Comprehensive Streets Program, can be found
here: https://citvofPt.us/engagept/page/comprehensive-streets-program.
Parks Initiatives: Healthier Together (Pool) and Envision the Golf Course/Mountain View
An overview of the Healthier Together (Pool) initiative can be found here:
https://citvofpt.us/engagept/page/healthier-together.
An overview of the Envision Port Townsend Golf Course and Mountain View Commons can be found here:
https://citvofpt.us/engagept/page/envision-port-townsend-golf-course-and-mountain-view-commons
Video Series
A new video series providing a brief overview of core services and the three priority areas of housing,
streets, and parks can be found:
• On the City Facebook Page: https://www.facebook.com/CityofPT
• On the City YouTube Channel: https://www.youtube.com/(@CitvofPortTownsend/videos
• On the City website: https://cityofpt.us/engagept/page/videos
Financial Sustainability Task Force Draft Report to City Council Page 31 of 31
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