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071023 Special Session City Council Retreat
Cityof port Townsend City CouunCii and Executive Leadership Team 2024 Worlkpian Retreat 9arn.......4Ipm, Juiy 10, 2023 Port Pavilion Buiid°ung 355 i Wilson Street You can join this meeting remotely by using the following methods: • Join virtually via computer or tablet at Ihrtt.I211lgnw bina r oi,n enter the 9 -digit Webinar ID 242-937-955 • Join by phone in listen -only mode United States: Local Dial In — (360) 390-5064 access code: 706-376-505# • Submit public comment emails to be included in the meeting record to: pu :ubjk t.r,2rnerit2tyopt, Lis Summary With another exciting PT summer in full -swing and the 2023 strategic workplan being steadily delivered, this all - day retreat aims to step back, survey the scene, and plan ahead for success in 2024. The main objective is to come to general agreement on high-level strategic priorities with the right balance of ambition and realism. This will allow staff to build out and integrate deeper workplan details, and then feed it all into the budget process that kicks off in autumn and back to Council for a vote in December. This year, this retreat sits perfectly astride the Financial Sustainability Task Force Report, which serves to ground strategic workplan priorities for 2024 and beyond. • Agree high-level priorities of the 2024 workplan with some reach into 2025 and beyond • Listen to, consider, and incorporate advisory board and community feedback • Focus on policy decisions and work to map out decisions from inception to implementation • Develop a common understanding of the breadth and depth of our work together at the right level of detail and focus without getting stuck in the weeds • Build connections, trust, and a sense of one -team; enjoy time together, learn together, have some fun Guiding Principles • Embedding diversity, equity, inclusion, access, and belonging into the workplan • Consideration of dependencies across priorities, timelines, departments, and agencies • Department strategic capacity not resilient given our small organizational scale and lack of redundancies - we're just one 'rockstar/superstar' away from greatness or from failure • A shorter, simplified workplan is easier to communicate, collaborate on and realistic to deliver • 90% of what we do is required, ongoing, core service provision. This leaves 10% max for initiatives that deliver better, more equitable, or higher quality outcomes from operations • The Financial Sustainability Initiative lays the groundwork for the 2024 workplan with its integrated systems approach and recommendations to draw into the workplan • Recent leadership team training has helped cement principles to further involve our entire team in consultation and participation in workplan development • Community engagement has been ongoing with feedback from a variety of initiatives and plans drawn into this workplan; ongoing feedback may help refine the workplan • We depend on partners and they depend on us. We continue to integrate collaboration into our workplan but this means some dependency on others' deliverables is built into our planning too • Saying no is difficult always, but a well-developed strategic workplan helps weigh new initiatives against existing priorities to determine whether/how we adjust to allow a new item or not Materials & Preparation Review of materials and preparation is critical to a successful retreat. Provided and forthcoming materials: 1. 2023 strategic workplan status report 2. Draft 2024 strategic workplan overview 3. Advisory Board priorities/letters 4. Financial Sustainability Task Force Report and Support Materials - watch the videos if you can akryi Cityof ort 0> �a Townsend 9.00 Arrival, tea & coffee, pastries 9.30 Opening kick-off, introductions, purpose & intentions, getting to know each other better • 1 word describing where you're at right now • 1 thing you want to get out of this day 1 thing you're grateful for 10.00 Leg 1: Looking back at our wake - 2023 workplan status, successes, and struggles 10.30 Leg 2: Using our stars to navigate — Advisory Body reflections on priorities 11.00 Leg 3: Dead reckoning — Overview/Discussion of Financial Sustainability Task Force Report 12.00 A Captain's Welcome from Port Executive Director Eron Berg Continued City Council/Director discussion and connections over lunch (lunch provided) 12.30 Leg 4: GPS check— Draft 2024 workplan, Q&A, discussion 2.00 Leg 5: Off the chart(s) — Policy mapping our priorities 3.30 Recap, actions, reflections, next steps 4.00 Close 4.30 Social/drinks (Bishop Bottleshop) uuuuuuuum ^�ool� mlllllll Illllllllllllllllllm „� m� mime Illllllllm � 'Il IIIIIIIIIIIIIIIII Illlllllllllllllml �Illllllllllllllllmlll I Im a,ummuuuuuuuumm mmmmp muuuuuuuuuuuumu uuuuuuuuuuuuuuu mmmmuuuuuuuuuuuuuuuuuuuuuuumu uuiIIII�Imolm�lYull uuuuuum nuuuuuuuuuuuuuuuu m� i�mui mi mum m�muuuuuuuuuuuuuuuuuuuuuuuuuu Illllllllu mwmn ��� ���� i mnm �'� M�4?,��'VI� mmhummuuuuuuuuum uuuuuuuuuuuumu . 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I'D City Council Final Version 6"".26"'.23 cit y0f port Ar" Townsend F1 u r �p o s e 7he purpose of'this report., iS to present the findings and effibrl-s of"the Financial SUStain ability 'Tdsk Fome &) (.,ity Council, incIuding a set, of- r°(,?commendations and OP60r)Sft)r° theCity on itsjourriey toward gr'eater'financial W5t'Uirlability. The report i5 meant, to inform the near'-terrn arid longer-term decisiOnS by the City Council and the cornmunity f6r, sustained, efficient, fair, and afjbrdabh� PrOVISJon of basi(7 infru5tructure and ser'vice5 that underpin a healthy naturul environment, meaf7ingfijl economic deve/OpfTler7t, and a high quality pflifi.� fbr� reSidents. The 76sk Force recommendations J`bcus holistically on all city ser'vic'es With (in emphasis on priorities determif7ed through widespread c,ommunity engagerymmt and planning over, a number of years. I he two pr'oposed packages either� sustain current levels of Serw'ce or° enhance cur'rent' levelS of serw'ce, although fiat, to tile full extent o.f e5timated needs. Achievirig,fit�ianci'ai,51,J,5tul'nabi'li'ty ire' (in ongoi 11 rig Journey and thiS (.,!ftbr�t iS onestep along the path toward that goal. Financial Sustainability Task Force Draft Report to City Council Page 2 of 47 "FaHe of Contents IV. V. 91 Purpose........................................................................................................................................ 2 Definitions.................................................................................................................................... 4 ExecutiveSummary......................................................................................................................6 Introduction & Background..........................................................................................................9 Vision, Desired Outcomes, and Purpose of This Work.............................................................. 10 Financial Sustainability Task Force and Members.....................................................................10 Brief Descriptions of Services, Core Service Needs, and Areas of Priority ................................. 11 Levelof Service....................................................................................................................... 15 Optionsand Balance...............................................................................................................18 Efficiencies..............................................................................................................................19 Criteria.................................................................................................................................... 20 Packages/Options/Recommendations........................................................................................ 21 Package A: Sustain Current Services......................................................................................... 21 Package B: Enhance Services................................................................................................... 24 Conclusion/Next Steps................................................................................................................ 28 Appendix................................................................................................................................... 31 Select Resources of Relevance................................................................................................. 31 Select Tax and Non -Tax Revenue Options................................................................................. 32 RevenueTables....................................................................................................................... 36 Select Task Force Background Materials.................................................................................. 44 Financial Sustainability Task Force Draft Report to City Council Page 3 of 47 Area Mean Income (AMI) AMI is a housing affordability measure calculated by the federal government (Department of Housing and Urban Development) to reflect the median (middle) household income for a region. It is usually known as a percentage (e.g., 80% AMI) and often part of a range (e.g., 50-80% AMI) used to define eligibility for various programs like the state multifamily tax exemption program (RCW 84.14). Given the cost and shortage of housing in Port Townsend, the City whitepaper referred to in the document and linked in the appendix, for instance, suggests defining "attainable housing" as housing affordable to two -person households earning up to 200% of the AMI assuming 30% of household income dedicated to housing. Banked Capacity Banked capacity refers to the additional property tax capacity freed up in February 2019 when residents approved adding Port Townsend to East Jefferson Fire & Rescue (EJFR) fire district. EJFR now collects the dedicated Fire and EMS levies from City property taxpayers directly. Banked capacity have been levied by City Council for parks and streets and becomes available for any governmental purpose in 2024. 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. Examples are provided in the document. Core services 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. Enhance Levels of Service Enhance levels of service refers to the increase in investments beyond maintain (or sustain or "no net loss") to improve service levels. It likely means some new services yet still necessitates efficiencies. Facilities Facilities refers to buildings that the City owns (or leases) and operates, like City Hall, the Mountain View Campus (lease), the Cotton Building, Pope Marine Building, the Library, and City Shops. For the purposes of this report, facilities does not refer to City buildings/structures related to utilities like the Water Treatment Plant, Wastewater Treatment Plant, and Compost facility. Fiscal Cliff Fiscal cliff refers to the inflection point when city revenue stops keeping up with expected expenses, and eventually drops reserve balance to below policy levels. Fee in Lieu Sections of the Port Townsend Municipal Code require infrastructure development that cannot be reasonably installed concurrent with the rest of the project. Instead of waiving the infrastructure requirement, a fee in lieu of program provides the community the opportunity to invest the fees elsewhere according to city plans. A fee in lieu of program is an important way to achieve fairness and equity across the city for development. The options to use fee in lieu of is strictly voluntary and the City may waive, defer, or pay fees on qualifying projects (e.g., for affordable housing). The applicant has the choice to install the required infrastructure or volunteer an equitable fee in lieu of construction of the infrastructure. Financial Sustainability Task Force Draft Report to City Council Page 4 of 47 Impact Fees Impact fees are authorized by state law (RCW 82.02.050) for streets, parks, fire services, and schools. Impact fees are determined by specific calculations based on the improvements a city needs to support planned growth. Impact fees are an equity -based strategy where all new housing units pay their proportionate share of the impacts on City infrastructure. Impact fees programs provide for credits when a developer installs their share. The City currently does not use impact fees, though many surrounding communities have aggressive impact fee programs. State law prohibits impact fee programs and fee in lieu of programs to co -exist. Levels of Service Levels of service defines or quantifies the desired quality, type, cost, and/or amount of any particular amenity, asset or service provided by the City to the community. Levy Levy is the total requested tax amount imposed by the City, usually referring to property tax. Maintain Levels of Service Maintain levels of service refers to the increase in investments to keep service levels constant. It likely means no new services and necessitates efficiencies, but also no "fiscal cliff" compared to the do-nothing (no additional investment) pathway. Also called "no net loss" of current services or "sustain levels of service." Metropolitan Parks District (MPD) MPDS are junior taxing districts authorized by state law (RCW 35.61) that raise revenue for parks and recreation capital projects like pools, playfields or public parks as well as maintenance and operations of such facilities. An MPD may mirror the boundaries of a city, a county, or a defined region within a county. Revenue is raised through a property tax levy up to $0.75 per $1000 assessed valuation. No Net Loss No net loss refers to the increase in investments to keep service levels constant. It likely means no new services and necessitates efficiencies, but also no "fiscal cliff" compared to the do-nothing (no additional investment) pathway. Also called "maintain" current services or "sustain levels of service." Sustain Levels of Service Sustain levels of service refers to the increase in investments to keep service levels constant. It likely means no new services and necessitates efficiencies, but also no "fiscal cliff" compared to the do-nothing (no additional investment) pathway. Also called "no net loss" of current services or "maintain" current services. Transportation Benefit District (TBD) TBDs are independent taxing districts authorized by state law (RCW 36.73) that raise revenue for transportation capital projects like road improvements and sidewalks as well as operations and maintenance projects, provided they are included in a transportation plan. The revenue is generated through vehicle license fees or sales tax. Financial Sustainability Task Force Draft Report to City Council Page 5 of 47 II II. Executive Suirnim iry 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 and the City's abilities to introduce efficiencies that together match the cost of services and obligations over the long-term. This work has an impact on every one of us. The City and our community owe 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 (2024 budget) and longer-term (10+ year) 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. The packages represent funding possibilities and, particularly for "enhance services," do not fully deliver on the needs identified in the table on page 18. 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 annual 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 annual revenue: $1.06m. Parks reliant on utility tax, parks foundation, and impact fees. Estimated annual revenue: $352k. Pool reliant on regional Metropolitan Parks District (MPD) property tax and Fee for Services. Estimated annual revenue: $3.05m. Financial Sustainability Task Force Draft Report to City Council Page 6 of 47 Affordable Housing reliant on Fee in Lieu program, affordable housing grants, and sale of City property. Estimated annual revenue: $1.15m. Library operations reliant on levy lid lift on general property tax revenues and additional property tax from Glen Cove annexation. Estimated annual revenue: $273k. 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 annual 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, and Real Estate Excise Tax (REET). Estimated annual revenue: $452k. Pool reliant on regional Metropolitan Parks District (MPD) property tax and Fee for Services. Estimated annual revenue: $4.35m. Affordable Housing reliant on Fee in Lieu program, affordable housing grants, and sale of City property. Estimated annual revenue: $1.15m. Library operations reliant on levy lid lifts on general property tax revenues and additional property tax from Glen Cove annexation. Estimated annual revenue: $533k. The process of performing a financial sustainability analysis is an iterative effort of balancing community values, regulations around funding, changes and needs in a more than local context, and evaluation of levels of service. This iterative process of working with the Financial Sustainability Taskforce, the public, and in coordination many other community initiatives also creates a learning opportunity. Key takeaways from this learning opportunity include the following: • The challenge of maintaining revenues to keep up with inflation is continuous. This places local governments in the position of continuous financial challenge. • The tax and revenue systems in place for local government (as authorized by Washington State) are heavily reliant on growth. Growth is the only way communities can remain financially sustainable over the long run in the current system. • The City's land base is a basis for revenue generation. Currently, 50% of the land in Port Townsend is not subject to property tax. Much of this land is in the form of right of way, open space, non- profit ownership, and governmental ownership. • Existing community debt burden may delay investments. Some investments in enhancing services may have to wait until existing debt is paid off in 2035 and staggered with any remaining debt. • Efficient urban form may take more time to implement, but delivers more of a structural change that drives greater financial sustainability. The pre -platted nature of the City resulted in a low Financial Sustainability Task Force Draft Report to City Council Page 7 of 47 density development pattern with substandard infrastructure. This results in a much higher tax burden per capita than cities developed in a more dense urban form. City tax structures, especially for streets, are not set up for rural development patterns. • A focus on economic development is a key way to make long-term headway to a more financially sustainable community, resulting in greater housing density, greater commercial intensity, infill development, and annexing the Glen Cove area. The key to success in this arena is to seek out the desired economic development that fits Port Townsend rather than reacting to growth. The City Council will receive these recommendations in July 2023. Deliberations are expected over the coming months with consideration of policy decisions and future budgets. Deliberations and community engagement is also expected into the foreseeable future, 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 8 of 47 IIAllo Introduction & 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 several 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 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, pool, 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 9 of 47 Vision, Desired Ciutcornes, and Purpose of This Work 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-term. 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. • Library operations are sustained at their current level of service. While the actions proposed in this report would make positive progress in all these areas, they also fall short of achieving all the desired outcomes. Realizing financial sustainability needs to be an ongoing effort. Financial l ,Sustaiinalbiillity .Faslk (Force and Members 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 10 of 47 E 7ff Wvlllmi, 7i/////(// r,///// ........................................ -10 0 0 0110 01 1ig*11' 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: https://cityofpt.us/engagept/page/financial-sustainability-initiative. All the meetings have been open to the public. Public comment was available during all these meetings. Members of the Financial Sustainability Task Force: • Catharine Robinson • Earll Murman • John Nowak • Rick Jahnke Brief Descriptions of Seirviic,es, Core Service Needs, aind Areas of IllPirioirity 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 11 of 47 I M a WOMEN= SERVICES PROVIDED By"r'HIE CII' Development Services: Planning, perinnitting,L inspections General Government. City management, Ilegall services, finance, human resources, IT Library: Library services Parks, Recreation & Community Services- Park maintenance, recreal activiities Police. Pub Ilio safety services PublicWcirks. Maintenance of physical infrastructureand transportation systems Solid Waste: Garbage and recycling services Water/Sewer: Drinking water, sewer treatment services SlISIRVIICES IRM.)VIIIIIINEID BY AEFFIERSON1 COUNTY Assessor. Assessment of real property Economic Development- Buisiiness attraction and retention Emergency Managerrienc Disaster planning, rnitigation,and recovery Environimentall Public Health. Water quality maintenance, lDreservation of open space, IDeir-matting of waste systems Muin,icipaill Court. Processing of cases and collection of fines Public Hlealth. COMMUPiCable disease management, family health services SIEIRVI PROVIDED 113YOTIHERIENTITIES Electricity (via Jefferson County PUD) Fire prevention andl emergency response (via East Jefferson Fire and Rescue) K-112 education (visa Port Townsend Schooll District) Port maintenance (via Port of Port Tovvnsendl 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: Delivet- onci itical opet otions, ongoing statutory responsibillitie5" tind core C I ity functions Legal services Insurance and risk management Records management Responding to public records requests Public meetings Training of elected members, staff and volunteers Liaison with Councilmembers and stewardship of political decision-making Community leadership and partnership with other agencies and organizations Workplan and budget development integration and oversight of City operations Compliance with internal and external policies, regulations and requirements Coaching, mentoring and performance evaluation of employees Special projects, communication, engagement and advocacy Code compliance Permitting review and approval Building inspections Current planning Long-range planning Recruitment, including development of a recruitment strategy Union contract negotiations Retention, including a retention strategy and employee recognition program Performance evaluation Employee engagement, engagement survey and manager follow up Coaching, mentoring and training programs Internal HR -related policy development, application and evaluation Facilities management, oversight, property management, rentals and event permitting City Volunteer Program, including adopt -a -trail, adopt -a -park and Library/Police volunteers Budgets and financial reporting Forecasting and financial analysis Utility billing and cashiering for variety of City services Annual reporting and municipal audits Business license compliance and business and occupation tax reporting Purchasing administration and accounts payable Payroll Information Technology — including network security and user support Books & material circulation including curbside delivery, databases, e -books and e-audiobooks, children's web resources, grab bags, interlibrary loan Programs and events, including virtual programming, youth programming and adult programming Staff response to patron requests and associated services Access to technology Emergency response Patrol, investigation Special events Emergency preparedness Records requests Training Policy development and refinement Street maintenance, operations and programming Stormwater operation and maintenance Wastewater collections and treatment and compost Management of trash collection and recycling Drinking water treatment and distribution Engineering, major capital projects Development review for infrastructure extension Right of way management including urban forestry Fleet operations, maintenance, and replacement Management of parks and trails systems This table illustrates a range of everyday operations necessary to keep our city functioning 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 12 of 47 I■ I PUI-'dic Works 6'cuks, etreo�uw�, e,.incl ±Currirnunity &euvices f'Vanrfing and Corrrourri nifyr C: evelcapment U 4,.n, r r:ar Aclurtiinkiroticrn, Krrecnco, cancl 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 mismatch in community expectations with ability to provide services based on revenue. Core Services Percentage of locally generated safes tax revenue by recipient Core services are fundamental to a functioning city. Percentage of locally generated property tax revenue by recipient. They include attending to critical operations, ongoing /Vote that 49% schools reflects 28% for state, 21% local. 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 13 of 47 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, and occupants contribute sales tax. However, 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, $250,000 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 14 of 47 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 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's parks, recreation, and trail system are consistently cited by residents as integral to maintaining and enjoying a healthy lifestyle. The City manages 190 acres of publicly owned land, maintains and contracts operations for an old pool nearing the end of its life, 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 one-third 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 $1 million 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 $3 million 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 $4.5 million 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. ..evel of Seirvilc 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 15 of 47 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 11 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 by state law 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. 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 to deteriorate 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. ENDING FUND ND BAL-ADNC E & RESERVE -DARGE_C. (General, Streets, & REEII Com Svcs, & Debt Funds) Do Nothing 1 1 "R .: .: I L, Lo El El E I'll &b LF LF A... ". UJ C"7 n•A C SIN C 4 N N rel Cr7 N 0 0 0 0 0 0 vv vv ra ra mom Iota I Fr'wefktg Fund palar'wca Tr'tA Pe ilcy Ffrzaarws. Financial Sustainability Task Force Draft Report to City Council Page 16 of 47 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" compared to 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 would require approximately $750,000 of new annual investment. At the City-wide scale, sustaining current services would require an additional investment of approximately $4.8m 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 $10.6m 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. The estimates in this table quantify the level of revenues needed for the three scenarios; Section IV identifies strategies to generate those needed revenues. The numbers do not necessarily match exactly for a few reasons worth mentioning. First, there are insufficient revenue tools to achieve desired outcomes. Also, strategies are developed over a 10 -year timeframe with the goal of maintaining ending fund balance. Finally, the estimates in the table correspond to a snapshot in time in today's dollars. Financial Sustainability Task Force Draft Report to City Council Page 17 of 47 Total $ 12,801,230 $ 17,609,722 $ 23,393,264 Increase in Revenue $ - $ 4,808,492 $ 10,592,034 Options and Balance The three basic options above can also be considered as balanced trade-offs between three concepts: growth, funding strategies, and level of service. Efficiency plays an important role in each. 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. Reduction of costs will be required in terms of level service cuts. Financial Sustainability Task Force Draft Report to City Council Page 18 of 47 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 $ 612,977111 Pool $ 400,000 $ 2,650,000 $ 3,850,000 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 $ 62,000111' $ 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) 01 $ 30,000 $ 100,000 $ 130,000 Total $ 12,801,230 $ 17,609,722 $ 23,393,264 Increase in Revenue $ - $ 4,808,492 $ 10,592,034 Options and Balance The three basic options above can also be considered as balanced trade-offs between three concepts: growth, funding strategies, and level of service. Efficiency plays an important role in each. 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. Reduction of costs will be required in terms of level service cuts. Financial Sustainability Task Force Draft Report to City Council Page 18 of 47 I '/ i Iu, of ;jr'rf I'%/n(JUCr. C G r ;'f I I'3!; I c i Reducing costs through efficiencies is required in all three basic concepts. If new funding strategies are not pursued, then growth is the only way to maintain or enhance level of service. While the Task Force and this report do 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. Efficieiri ies 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 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. Financial Sustainability Task Force Draft Report to City Council Page 19 of 47 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 20 of 47 IV. Pa ckages/0 ptions/Recom men da tion s 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. To date, a suitable combination of strategies has not yet been identified that is fully able to meet the funding requirements of each package, particularly the higher requirements of the enhance services package. Note that the numerical values of funding options below do not directly correspond with the needs identified in the table on page 18 given financial strategies must be evaluated over a multi-year period, are implemented over time, and are reflective of market conditions (particularly for the growth -related strategies). Also note that actual revenue packages and timelines need to be reconciled with implementation schedule, so implementation dates are currently estimates and may need to be spread out over several years. Package 4 Sustain Current ,Services Al: 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/Timeline Banked Capacity $900k Est. to begin in 2024; unrestricted use Utility Tax -Council manic' $152k Raise to 24% effective rate (includes continuing 2% at 100% to Parks); Est. to begin 2024 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 Infill Development Strategy $95k Est. to begin in 2025 Multi -family development— Sales Tax add # of units $76k Est. to begin in 2025 Multi -family development- Property Tax add # of units $7k Est. to begin in 2025 Glen Cove Annexation $680k Est. to begin in 2030 Total Revenue Options $2.21m - $2.77m Financial Sustainability Task Force Draft Report to City Council Page 21 of 47 1 The 2024 sunset on 2% utility tax is dedicated to the general fund per municipal code. Historically, this tax has been dedicated to parks maintenance. Reinstating this tax would continue to allow for the Council to choose to invest in parks maintenance. 2 For more on Glen Cove Annexation, see Housing Non -Revenue Options in Section VI Appendix, page 32. 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. Revenue Option Annual Amount Note/Timeline 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 Fees for Service (Permit fees) $85k Est. to begin in 2024 Fee in lieu of or Impact Fees $100k Est. to begin in 2024 Real Estate Excise Tax (REET)1 $100k Est. to begin in 2025; For federal or state grant match Total Revenue Options $1.06m 'Allocation of existing REET revenues A3: Parks Long-term operations of the Parks and Trails system rely on general government revenues. Additional proposed revenues include reinstatement of the historically 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. This scenario does not anticipate any investment or change in current operations of the golf course. Revenue Option Annual Amount Note/Timeline Utility Tax -Council manic' $152k Reinstate 2% Utility Tax set to expire December 31, 2023 Parks Foundation $100k Est. to begin in 2024 (currently under evaluation) Park Impact Fees $100k Est. to begin in 2024 Total Revenue Options $352k 1 The 2024 sunset on 2% utility tax is dedicated to the general fund per municipal code. Historically, this tax has been dedicated to parks maintenance. Reinstating this tax would continue to allow for the Council to choose to invest in parks maintenance. Financial Sustainability Task Force Draft Report to City Council Page 22 of 47 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, or the pool will likely close within 5 years. With this funding option, the City and partners would be able to build and sustain a pool similar to 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. Since the current pool has serious layout and configuration shortcomings and would cost an estimated $25 million, this option is not being seriously considered and would likely result in pool closure. Revenue Option Annual Amount Note/Timeline Metropolitan Parks District (MPD) (.70 per 1000) City only' $1.8m Voted Est. to begin in 2025 Fees for Services2 $450k Est. to begin in 2025 Total Revenue Options $2.25m Est. to begin in 2026 1 Assumes $6 million in grants which may not be competitive for the existing pool configuration. 2 In addition to current investment of $400k. A5: Affordable Housing Developing a program for Affordable Housing requires establishing new revenue sources and policies 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 above an affordable 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/Timeline In Lieu fees ($5,000 per unit for above market units) $150k Est. to begin in 2025 Sale of property — to support direct investment in housing' $250k Est. to begin in 2025 Limited City resource, dependent upon available land inventory Affordable Housing Grants $250k Est. to begin in 2026 Total Revenue Options $650k 1 Estimated $2m total available, $250k annualized until all property is said 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. The current levy lid lift has not kept up with inflation as of 2023, so an additional levy lid lift or revenue will need to be considered in 2026 to maintain current level of service. Revenue Option Annual Amount Note/Timeline Levy Lid Lift (.10 per 1,000) City Only $260k Voted Est. to begin in 2027 Glen Cove Annexation $13k Est. to begin in 2030 Total Revenue Options $273k Financial Sustainability Task Force Draft Report to City Council Page 23 of 47 IPacka e IB: IEinhance Services B1: 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, and utilizing the banked capacity revenue. Even with these proposed strategies, the City will not be able to sustain or enhance current services beyond 2030. The inability to enhance core services in the General Government, has an impact on the ability of City to succeed in other key initiatives. For example, enhanced services include increased involvement in working in the State and Federal legislative agendas. Enhanced services include increased investment in planning services which is necessary to achieve the growth strategies. Parking management is also a key community concern under core services which can be implemented but may not provide additional revenue depending on the level of parking fees. Finally, the biggest risk to the City financial sustainability relies on recruiting and retaining quality staff in a labor market that is particularly challenging. The inflationary pressures on these core services make a constant challenge for the City to sustain the core services the community relies upon. Revenue Option Annual Amount Note/Timeline Banked Capacity $900k Est. to begin in 2024; unrestricted use 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 -Council manic' $152k Raise to 24% effective rate (includes continuing 2% at 100% for Parks); Est. to begin 2024 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 Glen Cove Annexation $680k Est. to begin in 2030 Total Revenue Options $2.21m - $2.77m 1 The 2024 sunset on 2% utility tax is dedicated to the general fund per municipal code. Historically, this tax has been dedicated to parks maintenance. Reinstating this tax would continue to allow for the Council to choose to invest in parks maintenance. 2 For more on Glen Cove Annexation, see Housing Non -Revenue Options in Section VI Appendix, page 32. B2: 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, Financial Sustainability Task Force Draft Report to City Council Page 24 of 47 the City would not yet be able to fully meet the financial objective to enhance current services. The City Council Infrastructure and Development Committee recommended seeking revenue increases totaling $1,500,000 to achieve the outcomes desired in the Comprehensive Streets Program. Given the shortfall in core governmental services and other demands for parks, this objective falls short as shown below. The only options remaining to increase revenues for streets are a voted levy or an increase in utility tax which conflicts with some of the other funding strategies and may exceed the overall tax burden that the community is willing to pay. This investment level is a good starting point to make a difference in the City street system. A follow up revenue increase after 5 years of implementation may be a community desire. Revenue Option Annual Amount Note/Timeline 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 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 Real Estate Excise Tax (REET)1 $100k Est. to begin in 2025; For grant match Total Revenue Options $1.08m 'Allocation of existing REET revenues 133: Parks Long-term operations of the Parks and Trails system rely on general government revenues. Additional proposed revenues include 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, trails, and recreational facilities will remain reliant on general government revenues and are not able to sustain current services independently. The only options remaining to increase revenues for parks are a voted levy or an increase in utility tax which is in conflict with some of the other funding strategies and may exceed the overall tax burden that the community is willing to pay. In particular, if an MPD is accepted by the community for a pool, a property tax levy for Parks may not be accepted by the community. Long term, if there is an MPD for the pool, parks maintenance and improvements could be wrapped into a larger regional MPD which includes combination of City and County Parks. This scenario anticipates gradual investment through RCO grants (with City match) in the future design and operations of the golf course. Revenue Option Annual Amount Note/Timeline Utility Tax -Council manic' $152k Reinstate 2% Utility Tax set to expire December 31, 2023 Parks Foundation $100k Est. to begin in 2024 Park 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 $452k Financial Sustainability Task Force Draft Report to City Council Page 25 of 47 1 The 2024 sunset on 2% utility tax is dedicated to the general fund per municipal code. Historically, this tax has been dedicated to parks maintenance. Reinstating this tax would continue to allow for the Council to choose to invest in parks maintenance. 134: 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, or the pool will likely close within 5 years. With this funding option, the City and partners would be able to build and sustain a pool with enhancements to the existing pool (e.g., regulation length lanes, two tanks for recreation and competition) but not the full build -out scenario with gym, physical therapy, and classrooms. The proposed strategy is to establish a regional Metropolitan Parks District (MPD) through an additional property tax levy. The regional MPD under consideration would include the Tri -area, Marrowstone Island, Cape George, and Kala Point. Other proposed revenues include establishing Fees for Services. The cost estimate for an enhanced pool is $37 million, assuming $7 million in grants results in financing of $30 million over a 20 period. A newer and larger facility will also require an estimated $890,000 per year to operate. This option recommends increasing fees comparable to other neighboring city pools resulting in fee revenue increase of $450,000 per year. Under MPD rules, the City is required to continue its current investment of about $400,000 per year. The proposed structure will be built with a minimum life of 50 years. The proposed debt will cease in 20 years, which will then follow with normal long-term maintenance for sustaining the structure. Revenue Option Annual Amount Note/Timeline Metropolitan Parks District (MPD) (.42 per 1,000) Regional District $3.OM Voted Est. to begin in 2025 Fees for Services $450k Est. to begin in 2025 Total Revenue Options $3.45M 135: Affordable Housing Developing a program for Affordable Housing requires establishing new revenue sources and policies 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 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 or enhance the City's workforce housing needs. This challenge will be a specific focus of the 2025 Comprehensive Update, an effort that is being prepared for now. Financial Sustainability Task Force Draft Report to City Council Page 26 of 47 Revenue Option Annual Amount Note In Lieu fees ($50,000 per unit for above market units) $1.5m Est. to begin in 2025 Sale of property — to support direct investment in housing' $500k Est. to begin in 2025 Limited City resource, dependent upon available land inventory Affordable Housing Grants $500k Est. to begin in 2026 Total Revenue Options $2.5m ' Estimated $2m total available, $250k annualized until all property is sold 136: 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. The current levy lid lift has not kept up with inflation as of 2023, so an additional levy lid lift or revenue will need to be considered in 2027 to maintain and enhance levels of service. Revenue Option Annual Amount Note/Timeline Levy Lid Lift (.20 per 1,000) City Only $520k Voted Est. to begin in 2027 Glen Cove Annexation $13k Est. to begin in 2030 Total Revenue Options $533k Financial Sustainability Task Force Draft Report to City Council Page 27 of 47 V. Coin du. sibn/Next Steps Like many communities, Port Townsend faces serious challenges in funding the services the community desires as well as performing the base or core levels of government. This report underscores this challenge. Unlike many communities, Port Townsend has a number of unique features that make it different from other comparably sized communities. These unique differences compel us to evaluate our assets and use our strengths to grow in a way that honors community values, creates financial sustainability, and delivers lasting value to current and future generations. The process of performing a financial sustainability analysis is an iterative effort of balancing community values, regulations around funding, changes and needs in a more than local context, and evaluation of levels of service. This iterative process of working with the Financial Sustainability Taskforce, the public, and in coordination many other community initiatives also creates a learning opportunity. Key takeaways from this learning opportunity include the following: • The challenge of maintaining revenues to keep up with inflation is continuous. This places local governments in the position of continuous financial challenge. • The tax and revenue systems in place for local government (as authorized by Washington State) are heavily reliant on growth. Growth is the only way communities can remain financially sustainable over the long run in the current system. • The City's land base is the basis for revenue generation. Currently, 50% of the land in Port Townsend is not subject to property tax. Much of this land is in the form of right of way, open space, non-profit ownership, and governmental ownership. • Existing community debt burden may delay investments. Some investments in enhancing services may have to wait until existing debt is paid off in 2035 and staggered with any remaining debt. • Efficient urban form may take more time to implement, but delivers more of a structural change that drives greater financial sustainability. The pre -platted nature of the City resulted in a low density development pattern with substandard infrastructure. This results in a much higher tax burden per capita than cities developed in a more dense urban form. City tax structures, especially for streets, are not set up for rural development patterns. • A focus on economic development is a key way to make long-term headway to a more financially sustainable community, resulting in greater housing density, greater commercial intensity, infill development, and annexing the Glen Cove area. The key to success in this arena is to seek out the desired economic development that fits Port Townsend rather than reacting to growth. This report is a culmination of discussions and analysis addressing the key issues the City is facing. The analysis of sustainability of core governmental services, parks, pool, and streets resulted in an outcomes that limit the level of enhancements and struggles to sustain services in their current form. Following the general recommendations of this analysis will result in increased efficiency, targeted growth for sustainable outcomes, housing investment reform, and increased sales, property, and utility tax. The following table illustrates the estimated resulting tax rates if all measures in this report were implemented. Many of these measures would be voted measures. Financial Sustainability Task Force Draft Report to City Council Page 28 of 47 Resulting Tax Rates Do Nothing Sustain Sales Tax 9.1% 9.4% 9.4% Property Tax City Rate' $1.45167/1,000 + $0.10/1,000 + $0.20/1,000 Property Tax MPD --- + $0.70/1,000 (City only) + $0.42/1,000 (City + Regional) Utility Tax 20% 24% 24% 'Banked capacity is accounted for in the do-nothing column even though it is allocated as revenue in sustain and enhance columns. See Definitions section on page 4 for additional information. As outlined in the introduction, the ending fund balance chart under the do-nothing pathway shows the City financials falling off a cliff in the 2027-2028 timeline. This means that under the do-nothing scenario, service cuts would be required as early as 2026. If all the options for revenue are realized under the enhanced service pathway, the ending fund balance challenge comes sooner due to increased expenses without revenue. The challenges of sustaining and enhancing services desired by the community is illustrated in the charts below. ?�9,Gd�M�M,CIti�CI r�4„6N M N,4)'N;N h,6N M N,4)'N;N ?,N'010,01NO 0 utjdi rl 8II 1, 11' IIuauo vv/ 5uT uuj cil11'11 ��.u�'ellnu°II""SII„ �robllu^tt�'l'��H lard, C tdN'h""'tllItl110nJ1 y Sltlntllt"p," ,, Wla l" tllllnit °nV sh,1d1111 (An 11'erfl 1"itlnA i" :; 2023 2024 11, t ,02'1:"a 1 t 1'02td II rti A.. 2021II rti d 2028I rtiA 20291''1", G 20K I 1u G ,rli,' I 1r,l U:1'2I rc �;T. ftl' I I, ,51 191J "(Fe I Financial Sustainability Task Force Draft Report to City Council Page 29 of 47 u7�ungi II ullu�d Il��nllallua�:e ��fl Sril I II a D I uindI°IIS ual OIlf illolInS, �,'pV"IlYlrll In hll lrk:" "nr Ilia ° „ d oIllnin' V111,1 u' r "4�11011C;V,""v� AYi:&� 1plYll' ,') �I YaIIfYc o,;, Sci rwRIIIx';s %yDO000//r yyy ., ,��'1'1f'11f1f1f1f1f1f1 ��i�� ��I1�1111111 ���; !(!Ali ,l Iiu:] I"oi,l Ir( a rr: �r G )( l I 'I �'Cl ntl 44tviii rpra,R7V1�,�7V1t] i (3,C74:t(3,C74 0( As a result of the reality our community faces, this report recommends City Council take action methodically over the next few years starting now. The key initial actions we recommend include: • Re -instate 2% utility tax which sunsets at the end of 2023. • Pursue a Transportation Benefit District (TBD) with the City Council adding 0.1% sales tax this fall and placing an additional 0.2% on the ballot for streets. • Pursue a regional Metropolitan Parks District (MPD) to address replacement of the pool. • Pursue economic development and planning implementation in the form of housing (especially multi -family), infill development, strategic commercial infill development, and start the process of considering annexation of Glen Cove in partnership with Jefferson County. Many other smaller but also important steps and actions are included in this report that are recommended to be considered at the same time. The timeline for implementation is on the 10 -year horizon. The report illustrates an aggressive timeline recognizing certain items may move faster than others. The report is also a road map for the 2024 workplan/budget and beyond. Implementation of the strategies identified in this report requires diligence and persistence by the City and, most of all, requires community support. Prioritization of implementation is recommended based on desired outcomes either in the form of level of service for the public or in actual quantitative results such as number of multifamily units created. It is increasingly clear that inaction will only put us further at risk and potentially jeopardize a more sustainable future for us all. But we believe our community is up for the challenge. We are a visionary, collaborative, and creative community — and we have the power to work together to choose the future we want — a future that is more stable, more sustainable, fairer, and better for us all. Financial Sustainability Task Force Draft Report to City Council Page 30 of 47 V1. Appendi'x Select IResouirces of IRelevance 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://citvofpt.granicus.com/MetaViewer.php?view id=4&clip id=2663&meta id=215676 Housing Initiatives A general overview of City housing initiatives can be found here: https://cityofpt.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://cityofpt.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.facebool<.com/CityofPT • On the City YouTube Channel: https://www.youtube.com/@CityofPortTownsend/videos • On the City website: https://citvofpt.us/engagept/page/videos Financial Sustainability Task Force Draft Report to City Council Page 31 of 47 Select Tax aired Non Tax Revenue 01pbons General Purpose Tax Revenue Options General purp Property tax increase - temporary, pe, rnonert on limited purpose Write,, .viewer & Stormwater U1111111y, tax increases Electric and General Purpose Non -Tax Revenue Options General Purpo clutfue ease rates for UY Space of Ast". Vic ./city Hall lnr,"iso reservo food Wrmce recioirements. Re mtolo Fleet Replacement Reserves with one fime funds EstoblWh a F.dlitiee Repair Reserve with one time funds Current Subsidy supports corn.my Suootnoble Serwoces and Community Sustainable Servkes and Community Sustainable Seroces and Community Financial Sustainability Task Force Draft Report to City Council Page 32 of 47 General Purpose Non -Tax Revenue Options (continued) Transportation, Roads, Trails, Tax Revenue Options Financial Sustainability Task Force Draft Report to City Council Page 33 of 47 LI- a,f ko,A rU,,,1 -d wi f—J, Could I9 t.4' '-d — Barr = effian: , bun n -y 't b E"qIn—, 4,9 -b." nlda h- kniall com ... 0 -d No quo—f". "f o.ffing C""' ock of G,un,ld .,,d C ty nj'.�'�qk M.Y' I nlwond� StM -quir- p,&4, p-- N/A u ty -wel - h,ft,.—on C,� fah ik�y f—w— fik . ...... 0,en li.b .,k,,t p-Ak d—w b,17�11." 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E10 C pe—twe --de—I fl,,e ." /—p-- gapof Arob —A Eavn Ab—Y (mn—mon J PT lo $40% � nin—Py buo.D."We f- 0"', Coy 0Vyetppc'� th'% Se, 0— - Lib,.,y 6—d m.mq whomy' fmaxel, May not be maint.hn' f"' C,,unal md —d' f Coy -d J�,ffon Covoy ro,, D,�Hn,v,n County C.""fly, ,,, 9'.� N/A woninoble fin bbran y J�fforl Co."ly CI trynby fi,�d m,b,ldy of rhe bb y &cw,"' 1, Jb-, y IJb— y (N, nb- 2001 hilb,my In the fVwm' may -qv- 9--il fra<rcV i'. Te,aonurnexnidy nfiribu"on d— to Mary he[p .,ifl, tzxoo is Ahlmn o—wo . nm�tn, � wid -.At S.0,qo M' i'""' 7" fo� nah'te"all- C.M,xi P.,k pk� dht,0, -W , in ....... e i. ,p4n.A N/A Swlah.We ulnaCny fince' M,.y -V be� �'Y"' r,'"com Gm -0 and Count, , fhe abildy tl,, 6.0d defici—,i- (-W -p-d Je ff—"n C" oe'&�' �ffidy f coot. A,--, $11 pe, .'ltan.b� k' dedwon n—, the my 11,nIKe' Y-1 po' p.,kl, g"" J,flern Co, Transportation, Roads, Trails, Tax Revenue Options Financial Sustainability Task Force Draft Report to City Council Page 33 of 47 Parks, Pools, Public Facilities Tax Revenue Options Housing Tax Revenue Options Financial Sustainability Task Force Draft Report to City Council Page 34 of 47 Housing Non -Tax Revenue Options Financial Sustainability Task Force Draft Report to City Council Page 35 of 47 Pstinoabed market value = I,... (:oY cil der slnn. Reduce "ermnant I,,, $2,O00,000 haled on :(:+rind be for oftordojob, Neighborhood Sued fund or use Swale of Land ownershl sotontiasl for P I Y Na rowah potential 0 8 One time 1loasing. for affordable howling "hmatled 20 lots wuth net Equitable sae aYegy concervrs to hee housing value of $1O0,000 ......... ......... ......... ......... considered. 4. ......... ......... ExponsXan of Sowo, fa" 000 acro? existing......... Porcowed gerluificanon housing and industry. I High gvawth patentiaV Wnit Requires Counby Potial geffluept 111duxtnaN. Pptel1YluN fal' 11011 tta.1 pNeeSVullGf w1111 111L0'Skufie b1,lslnoms I City ti 300 ac, six C�ddMonuj agppor Imuly. Coo to run r e Glen Cave UGA. W More a, burs h 1F in Gild II fib mduitlk y (....", will, ti— t erxcx bu,ine r 11d IIYCPk'!aSe aitrrrYd R.qr tp r''Yu, Req UIO eS 51JppupY'b'411ansing Exprtlnsilon ser vu:ep based on vubczre,o stern ba dpi a V.lCSA efrcerage and jobs nxlxYin{y developmentI Esuirn.ted nnual $1 cvm in c9epnntfy fur nucot effucooAtt I with urban services. apprava0 by o'evenua growth over 20 Also c ppart rtay fat parnerns and paternal,etwices, year Ipee'uad ', spare 4arriuVy wage jalsx, Camnreuce. for Infill. Ongoing nim.1 ovenuo, Continued development of Provides needed access City undated opulb'ng from workforce Inflation -y growth Supparbp it Akol lmvA in Evans g C Pr'vidoa hou^In a fB ousi $I 5,000 hug — fy r for p'YA.iYlti6d. A15r there attainable housing I4 Da PATI<auna isle ha0yp111g. ReglpYre9 Council tDltlu III4AIpIrt.Y I'1rJ41DYi'ig Via V,A Via") I I„5'0 unutp, (,YYhebr nary- cruor trove irrx ravanuna I'.�P„lulred for a scislumable Eleed mix of hou-9 I cippravai I rreecls I LL. contmunilby 1 bD tangible convbuuniby value foweis tax burden on residents mirestrucbure. Est $330,000 per year for High Vaval of sutatlnalpllity if IlnfiUV Ge elamfpent We need 75 units per new -enol aacV<pled hauling Vs ursf1lV c;—p—d Strmtxrgy: Excnlnniulei yenrc en a—ago goingoingConcol ttl csrrztr uc'tipal sales tax to sprawl.Ongoing with Infill os equitable. Could P'lorvrhng praa.esp, rreod for forward plus 400 "1Yos, depending on housing hackllog include 8'rnnnci(a V, right' n'w be4cnusrp of nna9 pragra rty t— Alla, e'V—ily and 11I,—d,, new hoaxing intits, Will include p nq "aril to equirex Plennn ng dkrult.� and mt'AI"ke0'Uk9g and tiler's V5 4 I:IC'11SViy taxVc'zl'y w0'lr market e'YYC'I h'I'YY5 1'SCINUk'Ve 4lftallM1t'Ablo i�'PY'llPlit'dlan and City ( zaninyl policy, badelaq of net enourglr o fpurcien redu�ctuan rut 2(7 fn top by t. build. and funding. Need to hausung noerc9 s. I C'..".1I insfrastl'brc:Yrare tactical Infill unvI5 beonq consnur,ted for 100 miles of wale[', address building cycle susiam.b.lay over the last 20 years. sewer, and sbroel5. problem. (C"arrent rdniia rorrnf par ye'P Is 50) '..,. 1'ota1 grass aanrrroerclaV '..,. C.ydscboxocl on eoa::a......y. '..,. I'.. '.., activity Ix $450 ra fo, 1ho '.., Howavar','n average —y '.., P—ibi. no. and city or $ I,3 m%nce'a of Growth parr am:c", susia: l-ble based on WA Refit Ufl'43b CIodISSPted Palau ring garad Addis' nal (obs. Makes rar nn cial jC � Eng awlsev+f'IaI t'pr!'lyullq Dob, ,M, Suppalt cluverae "so of camrnelclolly 44Apoa''.e (' 25 r ). I.....ras try cexeribr F' fB (S'IIYStatec ulx40.4 lir y invextlrnent rr rmarmAy needs Ire commercial "'rood prelperty, Vitality Fav Ex—plw R.— to burin— ociNiry and drives city revenuo. D pends on oh re* E ' , econotlbris n. Rey atrorogy for VSlpsinexa Grawlh In ctaimnerduxa alal i lo,Oricroevse raaYnrer(r1u:RV rn wcl'rkd''vice housing Titus Oatclue#es or f'opslonal develoland t en I crnaerxVal growntr. s sarppearts kpettel xeo vices. I ascIIvrty On U<'!nd by 20",0 eAvaaiVabllity, perv(a:ep, tPades, nlrnoll uxung hauong (Ir eAonp a:a-rrrbanunitYp '..,. w'hich generobes $640k ''.,. bualn..•,v, "onuf-a"ing, '... udduYonal annual tevenue. '... ''... etc. '... "'. inprovei Revel of spa erre Hugo irnpwvonrenh. in 7onutq i the key , Pest emlm on High revonue pertonnal for High growth puteutual equity a fusvualrbg. Support Market fel ileo s'n¢1 cadderver market rate ccpcurtanenfrs d MF development can (_[loins long Germ filnclncual A.pacrtananbs all far makingmvesirvoent s M{YltrfanblNy HarlsllY¢1; nf,ctite'uetur& due to di,Pe to utility tot Sall 4 to%, beulna hushed a4 itrH S Sfratiru Ilfry to l” Cltlle%. Or, peSYpin 41 dllffe""? land ova Ruble far tlport'nens m'A('A X,lrnulpro alb+np YY I and property beats rem5xnue. narrn far unit creation. :atcag,pc of lite Onoinn"Y uprR¢rnent4, I ctYnrp�?leze4.. strong opparc fty. — — — di5cril'rlilnmie, — — Coon('. I deiraon — Tom"[ " — — Rech[. an l witonsin Helpsh b g at est msite Gl Nyet. using PquFfg Ute 'f +eGr..th eNdminote off-5bo.t D pends an h—M,sq / patent'rllfor parking ,delbxlYy, OIr[i ease, fa51 of he a Ip4b Zeta f housingN/ denxity dovleopmant A right of wG4y for Itp1,IG4nf$ (�'un(. I def�4lan hainllnq densiny [equal errreMs 5to eoT muzlntmnaetre density is pchiavwpd. Purposes '.... Gaal bo maximize ''..... '...... development of new '....... '...... !. attainable unbs. We tf,owth potenitlaU for 1 SCW,'p AMI Muhl Inc—urnannoholrty of revenue nOrmc,l ,taut need need 80% of all new Markdnq and housing =' > I V 7b hapusung firprrr 174Fa ice 1larrsferx pr al>eriy lo. h'usYtrg crovnl0clble F—Ay Tex 150% AMI qurrhfrecf cocas 1e rest of prmpely'y I motl to be attainable I N/A far more paaple, sulor Rly eli out of Exernption Prag amt ''... or affordable. deveEaplment. 488 cults n 'I 144$ units rleedeel houxehalds, tax base. '.,., Basad on Dept. of '.,, '..,. 'I, by 204A C:emmerae 20 yr prcaVecbiao Financial Sustainability Task Force Draft Report to City Council Page 35 of 47 o v a z T r ry V o N w o m w o w v o n n m n �o � .--i ri O 0o m Oi rn m n o Pi c: o m � m � m V N N Ol lD ti C .� m ,.. l0 Ol N V m t0 ti H 0 N I Ol O O lz Ol V1 O O m N O d' O1 n N O O 01 M : O V V1 '.. O1 O O c V O m O m n lD LI1 O .-I �I1 --. V . m O V O V W O N O IO O o 0 0 of N M ry M o .- o V N o� N O M W N m N .-i m o e � tp m N V ry v m N W Vt v of N O Ol W O N O1 vt N N O V o0 T n Ol vl ri m N ti m N t0 O W n m .y v1 n �B w M O O u m V Q1 .-t ry V m l0 m ti O N tp O1 V1 O W V1 tp O ' O N O O �O � n n V1 m N .. n O O zM M m O1 m O O1 O O O N O O ': LD � n M n O b� m lD � n N ri N m m O1 n m n tp m m M N LrN oOoo Wovii_ Waccnnni mrD o m �momo; L0o�n1 Om Nm mO oOo imn_ mWo oOoN 0Va0 ' Oo Ovl mrn; mVri O�ofl mminf OVo,-y ooV; ` m mNn' - m" O O N rnOl O o o O] V O n h O O O M N Ol „.,. m o o m o O N W vt N n Ol O O Ol Ol o v m 01 lO co n 01 v o m N V N N n v v M _ m 0 N m� m O � Io m n o n � o N io m� N m o no0 --I m m m o N N m o m ro 0 v N N Ol O O N W N O Ql 0 0 O ti V N N + N O O�1 V V h tnp m W t�+t O .-I M �O W ip V O O N L of o of o a IOJ I o o o w o _ _ ... o "' n ry m• m ^ N m m tN n N a N v t0 m N 0 N 0 0 O O �D m O m m O O l0 N n 0 0 O O O V J N m o � o N o C 0 G o o 0 0 o a n Ili N M � � o N o a s o m m m o 0 c 0 o N o 0 v 0 0 0 o m m o - n o o m e o .+ o m o o n 16o o m w lo � ,� m m .n N N a N N on o Lri o m rn m o m m 0 0 o m n - in in m m rn m rn n .+ of a E 0 N O. m w m m o m n ,y OJ L m p o - O o N a n Orn I n m Lr o °' v a N N N > � N C a O O a+ X a+ V O m N bq p� O O v O v Z N vi V O L ^ > CO T T O Y Y E v u c S a c -O F- o o v E E a E taw ; o -oa . o Q o c y N i c v s u.o o o U c U c @. a v c c u u c c w N u m m O c v v c z C E> t0 DD N t6 N _ yj w Q T Z F On c O C `—° N N a+ O O Y a w N d¢> L Z d O v m N 3 E x Y c a....... u c c o v01i °E' Y o v a E >> y v J o6 E E> z n w m m o c m t c u m m- v c a 'o r 3 0 o o E u z mp w v m o z m o7S -c m s °1 Y r 4 ii a i N Q N> N N> N U U? T X¢ W v N u U C N@ W E H- a U� O U xE E u o a c7 o p "° a LL m o �o v Q m>> o `m m a n c Y y y o m m z_ Y z m m m c u' E c Z o v IIuII 0 0 z a�� O��� m a `� 0 0 o LL z o a N m v m o 0 0 0 o z m Q v LL Q mo l7 U Vf a U V U H f w a a¢ �n V' H f F � K w F F F F s Z O O '. m ;. N tD ,.: N N ,.. r` : N W aJ m at O1 Ol M M V) Vt vl vt W co m m V m M O1 N N m V oy0 W n N V v o0 N lD O O lD W W W W �I N O O Vt trt Ol 61 m m O of of Q• N N A m X11 vt 00 M 00 l0 m �D .-I n t0 m vt W W ri N N T l0 N io N tp V rv` W ti a0 d' O1 N N n vt [T N Ol W .-i r, a v tD O O of d al of V �O �p n N V1 Ol 1p 1p N M N N V ., ., ., I O a m o ": m N N O .. Uq ,.. W O Z Z T ° o W - ;9 a =: Ni w O O O a s ai of vt vt N Lr w w �o �o vi vi O O V1 Vt O m m N vt ti O r M a n �D V V 00 a Ol O n n ni O oo O 00 �o ri O cm m .- '2' m h h r� r� o o N N W [9 tB tp ry r lw n� c c+ W 1q. lD' t0O' n m ri W v w lD Q lD a a a o m ll N m m m I Ql Q1 Q1 cl m o .-i vi n I a I N m O O O O a m m a ri r a N �o ai ui ui n M O ao N .-I N N O W n V O o 0 ao �n m O O IRrcf w ro m ui o o lw o� m N N W w w � OCT 0 0 .-I N N m W ti N V 0 0 0 a a a 3 0 O v 0 O O o 0 0 0 0 0 0 o ry o o o my my �c o m N M o n o m T o 0 0 o o ° o o : o O O O O1 01 G �M1 N b W W tD I� O C O m 0 O O m m o a m 0 oo CV h 00 �o N o w W I� E o 0 tp O d OUW a O — O N > a d m 10 v ° a - E m s c o 0 0 0 o u x O E O N '' u 2 O N p O N T — 6 °a O� n i a N3 O ¢ E m u 3 >>> o 0 0 a J c u m nn w v Q v 3 O u° c v c w m a o > Z a N v w y to c `—° m v o t6 y ~ u~ N w m F m u u u F c. o N Z x c 0 J o E z c c v v_ .n '" > w m c c m +� m t c >> W o c o N v a > y w = c o 0 o y a '« o o m o 0 0_ z ° o E U Z V Z p �. J o. ° Y` a o — -c O0 > v m E o m -a > c p o a o o LL a m O 0 z u u 0 w O v u m o cc p z v a O v u w ov cc o z O v u c o w z w a m z 0 c O O .a O � f 0 � O N W O O O O O O O O O o o O O O O o o o : o o c 0 o. n V o lD O o co m ai m w v m O O O M O' of O O � O a o o � o o o o N N z a s o u z o O o - _ 0 i z E n Z Q 0 o Y vl vt N N O Nf M m 01 vt N N h V m m N n' l0 N N V 01 N V O vt W -i n N tD t0 C N N �O M Ot m n o n n vt N N W to V M W W l0 W Ot W O O o O I� N O m m O l0 N r -I N O V V O O O O N N O O O O r -I N O ci N o m m N N N O O O O �O Mal O M O O O O O O o N b V N m .i M N a� al V V h Vf V t0 � � N U a1 �t �o .y m v V h at N V m eJ o� N al N m N N Ol N vi N n m N N V al O o v� m O N O1 N rv1 W ti M N .ti ti v1 N N O al W �D M n N N O W Ol Ol .--i r` O ti V O m V N v) co v L0 ) v) ti tvl M M v) m O1 W W O v) W N N ci O V 1� m t0 o N d` ai O O m rl O W O V O V O a7 O W 0 N O at O W O N N W of N N W m o to W Ni ut o m a � a a N V vt L O L W �o ai a O O O O O O 03 of r ut N o o o o o o o o o o o o o m a s 0 v E m m O O O O O O O O O o o O O O O o o o : o o vt ip W O h h' a m O M O ti n a In ry m in 0 o o o vv'i o v ry m er v n V o lD O o co m ai m w N O vt I� O Ql W n O N ml N vi r; ai o a ti N W v) al N � N n�6 03 vi N o rn m m w m rn N ai c a m o a c6 n n o m as ti m o rn n c: a a o m T m O O O M O' of O O � O a o o � o o o o N N i 0 o o O o - _ i n o Y _ s n n E > c 0 O £ v a I N N yO S +O' o f W O j o v o ao Oc N 3 =- v UT, o W J ` m Z O O 0 ° Ol N o,--o "1.12o u z o z d z m a o 0 o c v a v - x> '.• oa o c o 0 o o • n v_ a F v°1i c _° J W u O J z °1 " c .`�, v E" = Q in y ,° Q �n z° E u Y v= m m d °1 N O C z Y v m m a ` -6 rr w O N* z a E LL a m o • ¢ 8H O N z o- H H N z w Q m rc w w O o z x w--- o > w o 0 z v o Z v Y Z ❑ w a o W o z o a N — — z v 0 ; N F F z m m v n o v a m w o� oqf w m W ry O W m m m m W N N r m r N N N LI1 V aS �6 N N N vi m � .i ti N n D N m o r• N V V N N �O Ol O1 o m n V1 V1 o _ � T O p 0 d o > N 41 (n r• V V r M V h W M W r• W N J � W l0 N O vN1 V N tD N ro ro � rl m � m N a w O n a rn V N 111 N N O1 4 O N M m O O N O l�0 W 01 N N N o a o m o 0 z >u y m W O V N W Ol N O 00 M N O C7m�aFF Z ti ti ti ,C 3 0 � o a o N — � H � m 0 Ili m m m N in o n 0 io E o v v o `w Qx O — c o c 0 0 - a O — N 4 � ❑ _ � T O p 0 d o > w ❑ N J a m 3 o J z c a o a w u v 5 i O w r+ o v❑ o c z �' N w N k m 4 o tl0 z >u y m z Z�l7 C7m�aFF Z F w ,C d' N C O co m ul O ui O of O O tc O c1 of O of n : O N c1 O1 m m N W N cp 0 N G Ol O O N rq ul O N N O vl c O O O of O O1 O c O M : O V m C O u1 oc n lc u1 O u N M c1 o m O N Go N m m m r; N N m a......... i E E o w o E N a a E E E„ > w o O N �D O1 u1 O N u1 tp O N M O O O �O O z N n n ul W r M M M O v u m w X X E E i m 0 N O V O 0 0 O N a lc c1 n ll Lr W l0 O ut d T� 0 W O� tD ry W C O M V ri Oi N I� O N cD cl ut O a o Lr o O M o O O M N N c M o m c N� ut O O N W vMl N N n c m N O N cl O O O O Ol Ol OOl ro n o CO a o � � N io m ro N O N O1 O O cl O� O � N O1 f Ol N lD t0 .y O N N tpW NO W mm O 0 0 O O C 01 c a 0 0� O OM C o lri o cd o o vl 0 03 m ti v 3 N N � m a o o m m o ' 3 v 0 0 0 0 0 o N o o c 0 o m vl c o o o .-i o 0 0 c I a N N ut T W O O 3 C O n N 0 vel � C V1 O ci O m M o m o � m o C c a o a E 0 N O O 0 m om m mm m _ o O y �? ut m O O a+ o n X v � V N N^ N $ > F Y m � N m C a - F - N N W � N _L T T O i d d E o o v E E c a u.o ¢ c o L o m c a > o O E u u c c E a......... i E E o w o E N a a E E E„ > w o w _ c m v a• � �< co ' co E �>� u u v u m w X X E E i ra e z m v a o z u u, a U V U a c v o v m n n M s ut m w o co m rn o O u1 O M m O_ N M -- c1 N m lD O O1 O1 c"! N m O V rn O ,y o 0 o w o� w m n n M v o co u-, ri N vo m .. C O a0 N N N M �; N m .-I O tc a W V N m m m o ao o m Ci N N .. n O n N c1 0 c1 n d' N 1D tD v n tp a - 0 O u1 �O O O c1 N N O ul n n .. 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O in V ' o n Na m r o O ti W O o vu'i O h er O N I lD 0 o n m D rte. N ul N H N tri e+ O m oo m v n O1 N o m a a rn n o m as tp O v O w o m o m w � O O m O o m 0 0 a o o o O .n v z v a z o O o i u z z z Y O W L= Z o W a W o EE rs o a o � z ¢ 0 z i VI of J J O V � VI ) i O i m � � ) N of .n o V1 O 01 M N ry M h M l0 tD n w m Iri m I m o m m I od m a o O I� ry o m v O V V O O O O N N O O N N O O O Nm V 1 O O O o M M o v a o o : o o I' Ni Ni �o oo ry .-I (T .-I W .-I O tq .� V rD N N I O n N ry V1 O �n n ui vi m y noo ; o �r O Ol Ol N WM ll M m N a c: ai m m V- M O N v N •, N O Ol tD M m V M ID O al t0 ti ff lD W O O lD N W ti 0 tD l0 .ti N tD W V) W V W M O Nry �� .-; �o .� nm �o N N� N a o � o m rl O O W O W w h O O) N O O ro o IN 1 N of l 41 ) (n o i o r : o O J � m i o r o ) o r i vl o o I I a O O in m o o o o O s 0 v E l m O O O O O O o o d d o o O '. O in V ' o n Na m r o O ti W O o vu'i O h er O N I lD 0 o n m D rte. 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For a full set of agendas, minutes, presentation materials, and video recordings, visit: https://citvofpt.us/engagept/page/financial-sustainability-initiativ . 1111111111111MUM NI The bUdget is ai-i econiontic plain that fOCLises the ei-itity's finarlciall and hurnan resourcleg on the accoirriphshirrient of specific goals and objectives established bythe (aokcy makers, NI The bUdget estaHishes the ariiival rever)Ue and experdituire Ievelk, carped appropari ation s, fIcn, dejpanlirnents and furds. NI A city bUdclet rnust be balanced: revenues 'a expenditures NI Poil Towi-isend CUriently operates on can anrL4I budget and alki are for that calendar year allone. SERVICES PIROVIDED BY-rHE CITY Development Services. Planning, permitting, inspections General Government. City management, Ilegall services, finance, human resources, IT Library. Library services Parks, Recreation & Community Services. Park maintenance, recreational activities Police. Public safety services PublicWorks.- Maintenance of physical infrastructure and trainsipoirtation systems Solid Waste: Garbage and recycling services Water/Sewer: Drinking wateir, sewer treatment services EMU Iff LegaIl requireirnent Iff Accoluntaloflky arid trarisj;)arericy How the City spends taxpayer and ratielpayier money Sh2iring accornplkshirnents . Performance evaluation . Performance measures Iff Mariagementtool Iff Plarinirig JOCILM,ient I'll Assessor. Assessment of real property Economic Development: Business attraction and retention Emergency Management: (disaster planning, mitigation, and recovery I'll Envirionimentall Public Health -heater quality maintenance, IDneservation of open space, IDer-miffing of waste systems Municipal Court: Processing of cases and collection of fines Public Hlealth. COMMUPICable disease management, family health serviires S11MVICIES PROVIDED BYI Irfll Electricity (viva Jefferson County PUID) Fire prevention and emergency response (via East Jefferson Fire and Rescue) K-11 2education (via Port Townsend School District) Part maintenance (via Port of Port Townsend) Public transit (via Jefferson Transit Authority) 911 services (via J11eff(11-p1M1) EM Police Pull-flic Works Porky, Recreation, cHid Community &ervices Mcuming and Communiy Develr,>l,,)meint U111 Ory Finance, and IHR A n.0 11 - ZE0- - — State'& A. 1x.40%% $6-40 City of IPort Townsend 0.98% 11%, $0.918 Jeff,e rso n Transit Authority 0'.901% 110% $0.,90 Jefferson County 0 73% 8% $0.73 JeffCom 0. 10% 1 % $0.11 TotalTax Rate 9.10% 100%, $9.110 Financial Sustainability Task Force Draft Report to City Council Page 45 of 47 State ILevies (Schodl) $2.,734 28% $,820 Local Schlools $2.026 21% $608 i of Pait'Townsend $1.5678 16%, $3,00 ClOUnty CLJ.rirent Expense* $1 2178 13% $128 F it ICSi. trict $0.9991 10% $12 Port of Townsend $0.521 5% $470 �Eimer,gency Medical Services $0.,425 4% $156 Pubhc Utility DistHct $0 0815 1% $24 Hospital D'Mdct $0.0399, 0.4% S365 Totals $9.6120 100%** $2,884 "includes 1Mentell Health, Veteran's IRellief, DevelojDmentA Disabilities "Totals may not SLIM to 100% due to rounding Leven of seiMce is a f WICti011 of 2 prin-iairy factom: 'I The amount of servk-es pirovided (whk-h is in I uni-ii a funiii of the cost of service and the budget foir services) 2 The nuimhei- of people, 'eceMniq, seirviii 11111 Parks exaimj-)1e:: 1,000 acresof parkland 100,000 residents 10 acres per I , 000 residents 1,000 acres of parkland 1125,000 residents 8 acres pear 1,000 iresiideints Key talkeawaym Illuncui vasiiiinq f�,w uivsideiii'vts uieceiiittliiuutg seiiiiwices WifhOLA iiinciii,easiiing fhe Immmint of seiiivukes iiiovWed decireases fhe Illlievelll of swivicei foiiii° tulle mituiTittinity. Financial Sustainability Task Force Draft Report to City Council Page 46 of 47 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 mainteriance (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 R. (v Y Adyninikorcition, 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 47 of 47 To: City Council From: Climate Action Committee Date: June 16, 2023 Subject: CAC Recommendations on 2024 Workplan Thank you for once again giving us the opportunity to make suggestions regarding your workplan for the coming year. We recognize that these are especially trying times given the past and lingering problems with the COVID pandemic, your budget and staff constraints, and your many critical short-term challenges. Unfortunately, the worsening climate crisis poses long-term challenges that will not go away and need to be addressed as best we can. Last year we presented a list of 7 recommendations which addressed how we can reduce our greenhouse gas emissions and increase carbon sequestration. Those recommendations are all still relevant and we have included them again below. This year we would like to add several that fall in the category of adaptation to the inevitable changes we face. Here are more than the number of recommendations suggested by Mayor Faber and we have not prioritized them. You may already be working on some of them, and we hope you can incorporate others into your future workplans whenever possible. 1. Research, develop and implement a managed parking strategy including paid parking downtown as a way to reduce Vehicle Miles Traveled and Greenhouse gas emissions. (See CAC recommendation from March 2022 below for more details.) Parking Proposal from CAC_final.pdf 2. Revise the Tree Ordinance to encourage retaining standing trees as practical, consistent with an Urban Growth area. Trees both absorb greenhouse gases and help cool the city during heatwaves, absorb heavy winter rains, and mitigate stormwater flows. They help in both reducing net greenhouse emissions as well as reducing projected climate change impacts. Additionally, create an urban forest management plan for the city to best balance the needs of development and the benefits of forest and trees. (See presentation on Forest and Trees Greenhouse Gas Inventory for 2001-2016 and Next Steps to the City Parks and Trees board below for details.) CAC Slides Update to City Parks and Tr( 3. Support community forest and other forest conservation projects, as well as consider protecting city -owned older forests. Same rationale and reference as for #2. 4. Pilot the use of a Climate checklist, such as the CAC Climate Risk Screening Tool, as a way to consider both projected greenhouse gas emission and climate change impacts for projects or policies implemented by the city. The goal would be to update the tool as needed after the pilot and then define a policy to make it part of the approval process for applicable projects and policies. (See cover letter and screening tool below.) CAC Letter re CAC Climate Risk Climate Risk Screein Screening Tool Dec, 5. Continue to support the CAC EV Work group, with Steve King as co -lead. See 7020 .ireenhouse Gas Reduct as a reference. 6. Have a representative on the CAC Vehicle Miles Travelled work group. Same reference as #5. 7. Update the city organizational climate goals status (see below) and prepare new goals for 2024. Climate Action Committee Organiz 8. Plan for adaptation to more frequent flooding due to increased intense precipitation, along with sea level rise (see #9) that can impact drainage. Examples include rain gardens. 9. Plan for sea level rise adaptation. Begin discussions and plans for a long-term vision of how Port Townsend might need seawalls and moving some operations to higher ground in order to adapt to significant sea level rise. The Port and the County are already investing in exploring options. (See The City of Port Townsend Sea Level Rise and Coastal Flooding Risk assessment). PRTTAB (draft) Response to Mayor Faber's 5 June 2023 Invitation Regarding Workplan Priorities for 2024 1. What 2-3 priorities do you and your board believe are most important to consider as part of the overall City workplan and related to your purpose and role as an advisory body? How do such priories align with existing work or foundational plans like the Comprehensive Plan and/or functional plans? A. Trees+ lists: A PRTTAB subcommittee has been assigned to update the street tree list from 2017 and the park/large tree list and list of species not to plant, both of which have not been updated since 2009. The subcommittee will work with staff liaisons to address the tree -relevant sections of the Engineering and Design Standards (EDS) and incorporate the updated lists by reference. The EDS sections addressing trees and ROW plantings are nearly a quarter century old and much has changed in arborist recommendations and climate impact considerations. This priority aligns with Strategic Plan focus on Quality of Life and Infrastructure Assets, and throughout the PROS Plan. B. Identify buildable lands while protecting existing open'space and urban forest: ,A PRTTAB subcommittee has been assigned to work on an open space and buildable lands inventory for tactical infill efforts aligning with work underway by staff, Planning Commission and Council. This priority aligns with Strategic Plan focus on Affordable Housing and Quality of Llfe. C. Parks+ foundation - Develop long-term methods for sustainable funding of parks and recreation: Staff invited the Executive Director of the Jefferson Community Foundation to attend a meeting in March 2023 where the board had the opportunity to learn about the process and expectations of developing a Parks+ foundation to support our parks, recreation, trees and trails or at least some subset of the list. This priority aligns with Strategic Plan focus on Quality of Life and PROS Plan Implementation Strategi 2. What has gone well this year that we should learn from or consider more broadly? A. The west side of town is getting some attention with infrastructure and amenities: New playground equipment has been installed at Bishop Play Park as a part of banked capacity efforts. Edge lane roads are starting to be assigned on the west side, to improve pedestrian and bicyclist safety. Also note that the first major local road improvement project will occur on the west side, funded by banked capacity dollars. Signage for park rules and kiosks of maps and information are being installed in parks by staff. PRTTAB asked last year that a more equitable distribution of park services and amenities to include the west side of town be considered, as specified for example in 2020 PROS Plan Exhibits 2 and 81 and'gaps'on the west side, referred to throughout the PROS Plan as well as the Comprehensive Plan Land Use Element. The northwest part of town still has no city -owned neighborhood parks or play equipment. There are no park or other public restrooms on the west side and almost no streetside benches for pedestrians to relax and rest on, although there are plans underway to repair and reopen the restrooms at Kah Tai Lagoon Nature Park. A grant proposal for Inflation Reduction Act funding was recently submitted that would add street trees and associated green infrastructure to the west side road improvements and hopefully generate some community effort toward benches for pedestrians as part of the local match. B. Develop volunteer recruitment, management and retention structure for extensive trails and other efforts: Staff have been successful in beginning to reconstitute what once was a robust volunteer program for parks since we do not have sufficient staff or budget to maintain our extensive parks. We also need a major volunteer effort for the 30+ miles of trails we have that were built primarily by volunteers. What is missing in the volunteer development is the efforts of our former trails volunteers, who could field teams of a dozen or more knowledgeable participants to work on trails. An unfortunate consequence of the previous administration's philosophy about volunteers led to the dismissal of the trails leadership, subsequent disbanding of trails workparties and the dissolution of the Nonmotorized Transportation Advisory Board. Advisory oversight of trails efforts was relegated to PRTAB, making us PRTTAB, but with none of the volunteer expertise and leadership of the former board. We need to honor that extra 'T' in our title and begin to focus our advisory efforts to include trails. Port Townsend would also benefit from developing volunteer groups to support tree planting and maintenance, such as a 'Friends of Trees' group. 3. What Advisory Board work from this or previous years is incomplete and should be considered for continuation in 2024? A. Update the Safe Routes to Schools map: Although many of our road and sidewalk projects refer to 'Safe Routes to School', the existing Safe Routes to Schools map and information apparently reside only in the Nonmotorized Transportation Plan which has not been updated since 2011 and in older sections (1998?) even refers to routes io 'Mountain View Elementary School'. The map and associated information should be updated and made accessible to the community. Updating would proceed in collabor staff. An update to the Nonmotorized Transportat current efforts. B. Stabilize funding for both park capital needs or acreage and population require: The Trust for Pul parks staff per 10,000 residents - we currently ha never had more than three since the 2008 recess utility tax. Parks and trails'are including funding for the dog be used for parks funding. Th( and trails. KUIT.TfiiY on with the Port Townsend School District n Plan is also overdue and highly relevant to to support a parks staff size that our parks c Lands recommends a minimum of five three full-time field staff again and have n. Two parks staff are funded with a 2% d should qualify for some LTAC funding )rs bring their dogs with them. REET can also unding sources could be partially redirected to support parks 4. Are there things we should stop doing or do differently, both at strategic and operational levels? A. Equity: We should make a'concerted effort to evaluate all annual budget discussions of parks funding and time:invested for equitable distribution of services and amenities. Parks on the east side are beloved because of their amenities. When a well -funded park has multiple kinds of children's play equipment, comfortable seating, WiFi, flower gardens, shade trees and real restrooms, of course it is used more frequently, but fairness requires that other areas of our community have access to similar amenities in their own neighborhoods. B. Sustainability: The Financial Sustainability effort and Metropolitan Parks District discussions seem more directed toward funding a pool rather than funding parks. We need to have a dedicated funding effort for parks capital and maintenance and not be held hostage to budget negotiations every cycle. One serious deficiency is our lack of both master and management plans for many of our parks, including Bobby McGarraugh, Kah Tai, Bishop, and Sather Parks and the 2 former Golden Age Club and adjacent Chetzemoka Dog Park. Master planning is necessary to be competitive for RCO and other sources of funding for parks. 5. What else should we be considering? A. Leash law/dog park brochure - Leash Law Communication Plan: Council tasked PRTAB to develop a communication plan to educate and inform the public about the leash law update in 2019. Effort was intended to develop outreach to the school district and with public notices in the newspapers and water bill newsletter. Brochure would be developed for distribution at trailheads, parks, the Visitors Center and the ferry terminal. Documents were proposed to be made available on the City website in order to minimize costs and resource consumption as well as to accomodate QR technology, with some paper copies for conventional distribution. Unfortunately, most of 2019 board effort was consumed with the PROS, Plan update, followed abruptly by the pandemic shutdown. B. New parks or features - community -built playgrounds and ROWs for parcours: During the PROS Systems workshop in 2019, we identified areas that'need parks or at least some recreational infrastructure, in particular in the Rainier/Howard Street corridor to Hastings and Hastings to Discovery. One economical way suggested would be to use ROWs on the west side for small linear parks using community -built efforts with recycled and natural products as much as possible. The limiting width of ROWs would still allow simple structures/linear activities for kids as well as to build parcours routes for youth and adults. In addition, community -built playgrounds are increasingly common (see the recent effort in Port Angeles) and we likely have the leadership, interest and skills in our community to tackle this idea. C. Pedestrian and bicyclist safety: More multiuse paths/trails and/or edge lane roads are needed on the west side of town for pgdestrian and bicycle safety. A multiuse path or edge lane feature on 12th or 14th Streets between Landes'and Sheridan and a multiuse path on Hastings Avenue between Sheridan and Howard (Capital Improvement Plan, Appendix C) would add an important safety feature to encourage more walking, and bicycling and less car traffic on these well -used routes. Pedestrian safety,on all trailsand sidewalks also requires consideration, particularly in light of the expanded use of e16r-tric bicycles. D. Public access to street end viewpoints: Make the street ends listed in the PROS Plan (Appendix C) accessible to the public as view points and prevent future encroachment by adjacent neighbors on all street ends, noting that such use was eliminated for the listed Garfield ROW by a Comprehensive Plan amendment via Ordinance 3119. E. The Tree Conservation Ordinance: The Ordinance should be rewritten so that the City is required to comply with all the requirements for tree planting that other developers must follow (19.06.130.13). Right°now the City exempts itself from Municipal Code that it requires others to follow (19.06.100.D), even though the City does more tree planting than any developer. In particular, the City should not plant monocultures or have plantings excessively dominated by single species or genera or non-native species for the reasons listed in the code. PRTTAB has tried to convince staff not to plant monocultures but our concerns were discounted. The Ordinance currently allows exemption of individual lots and only begins at the block level, a development size rarely seen here. Note that an update to our Tree Conservation Ordinance and the development of an Urban Forestry Plan are included in the recent proposal submitted for IRA funds for addressing issues of equity in urban forestry. 3 From: Melody Eisler To: David Faber Cc: Owen Rowe; Alyssa Rodrigues Subject: Letter to Advisory Boards feedback from LAB Date: Tuesday, June 13, 2023 7:46:06 PM Hi David, LAB met today and here is the feedback they provided at the meeting. I have included Alyssa in case she is compiling the feedback in advance of our July 10th retreat and Owen as the liaison in case you have questions as he was at the meeting today. They may have more feedback as they reflect. I will be on vacation starting tomorrow and back on July 3rd and can share any more insights then. 1. City could consider providing funding for construction of quiet/working areas in the library like office pods. 2. Improving the process and communication for advisory board applications and onboarding. General consensus was to make the process more friendly and welcoming. 3. Making sure the Library Strategic Plan is a part of the City's Strategic Workplan. Thank you so much for taking the time to get feedback from advisory boards. It was meaningful to LAB and we had a good discussion. Warm wishes, Melody Sky Weaver (nee Eisler) (she/her), M.L.I.S I Library Director City of Port Townsend I h;ttp:!lubliclibra ry.or=l I meisler@cityofpt.us 1220 Lawrence St, Port Townsend, WA 98368 P:(360) 344-30541 F:(360) 385-5805 ty0f FO Ftu "S �!,p rim wnsen To: City Council From: Lois Stanford, Planning Commission Chair Date: July 6, 2023 Subject: 2024 City Workplan This memo responds to Mayor Faber's request for input in advance of Council's 2024 Workplan Retreat. We appreciate the opportunity to provide our perspective on city work plan priorities. Please find below our responses to the four specific questions posed in Mayor Faber's letter. 1) What 2-3 priorities do you and your board believe are most important to consider as part of the overall City workplan and related to your purpose and role as an advisory body? How do such priories align with our 3 -year Strategic Plan, Comprehensive Plan andlor functional plans? Priorities and Alignment with Existing Plans: The Planning Commission have identified the following priorities as crucial to the overall City workplan and in alignment with existing foundational plans, such as the Comprehensive Plan and functional plans: a. Enhancing Walkability and Transportation: We recognize the importance of making our community a walkable and easily transportable place. The examination of parking and the implementation of measures to improve transportation options are essential in achieving this goal. b. MFTE Expansion: We believe in expanding the Multifamily Tax Exemption (MFTE) program to address housing affordability concerns effectively. c. Developing a Systemic Housing Plan: It is essential to move away from addressing housing issues in a piecemeal manner and work towards a cohesive strategy. We recommend that the City Council takes the lead in updating a comprehensive housing strategic plan, including clear goals and strategies targeting different income brackets. We emphasize the need to focus on anti -displacement policies and programs. Furthermore, we encourage the establishment of a housing data system that facilitates meaningful analysis. Alignment with Existing Plans: To ensure our priorities are aligned with existing work and foundational plans, we propose the following actions: a. Conduct a Community Assessment: In line with the Comprehensive Plan update, we recommend conducting a community assessment as part of continuous public engagement for the 2025 Periodic Update. 2024 Workplan Memo Planning Commission Input Page 2 of 3 b. Assess Concrete Evidence: It is crucial to track the impact of our initiatives on housing and affordability. We suggest monitoring metrics such as permit requests and housing starts to gather concrete evidence of our progress. 2) What has gone well this year that we should learn from or consider more broadly? Notable Achievements: During the meeting, we discussed the following achievements: a. Hiring of Long Range Planner: We celebrated the addition of Helena as our new long- range planner, which strengthens our capacity to address housing and planning challenges effectively. b. We celebrate that return of more frequent Planning Commission meetings. c. Progress on Housing Initiatives: While acknowledging the steps taken on housing issues, we are proud of the incremental steps taken through the Tactical Infill project to remove barriers to housing, such as implementing Unit Lot Subdivisions, allowing Tiny Houses on Wheels, Employer Provided Housing, allowing two ADU's per lot, and various parking requirement reductions. Our next step as noted above, is to demonstrate concrete evidence of their effectiveness in improving housing affordability. d. Recommended a Comprehensive Plan 2023 annual amendment to focus on achieving multifamily density through increased minimum and maximum density and the right combination of bulk and dimensional criteria to achieve this. The options to increase density and building capacity would amend High Density Multifamily, Neighborhood Mixed Use Center, Community Mixed Use Center, and Mixed Commercial/Light Manufacturing Zones. 3) What Advisory Board work from this or previous years is incomplete and should be considered for continuation in 2024. We highlighted the importance of continuing the unfinished work from previous years, particularly regarding achieving a duplex on a single lot and achieving the milestone of ending detached single-family zoning. 4) Are there things we should stop doing or do differently, both at strategic and operational levels? Areas for Improvement: The Planning Commission recognizes the need for improvement in certain areas and offers the following suggestions: a. Enhance Public Communication: Public engagement should be a priority, and we should explore ways to streamline and make the process more accessible beyond the traditional agenda packet. b. Improve Deliberation Process: We received feedback from the public during the Tactical Infill process, indicating a desire for changes. It is essential to allocate sufficient time for Planning Commission discussions and address repetitive comments effectively. c. Strengthen Public Messaging: To ensure the Planning Commission's recommendations are well understood and supported, we emphasize the importance of effective public relations. Demystifying the planning process, using plain language, and employing appropriate 2024 Workplan Memo Planning Commission Input Page 3 of 3 vocabulary can enhance understanding and engagement. The new emphasis to engage more than we did in the past is a wonderful new beginning for the City, such as what the City accomplished with the fiscal sustainability videos. d. Emphasize Public Participation: We encourage utilizing various platforms, such as webinars and feedback mechanisms, to facilitate public participation in zoning and Comprehensive Plan changes. Continued efforts should be made to engage the public through accessible means, such as providing clear information and opportunities for feedback. 5) What else should we be considering? As part of the 2025 Comprehensive Plan update, or in tandem with, the City should focus on exploring some of the financial tools in the White Paper "Exploration of Strategies for Supporting Infill and Affordable Housing Related to Infrastructure Development" to further incentivize affordable middle housing. The Planning Commission considered options to prepare zoning for an attainable housing strategy by achieving density according to the City's original platted conditions. These options were to establish a maximum lot size and/or minimum density as part of the 2023 annual Comprehensive Plan Update; however, this work did not seem achievable in two months. We urge the City to ensure this is part of the 2025 Periodic Update of the Comprehensive Plan. We also urge the City to consider the following options as soon as possible that are external to the Comprehensive Plan timelines, these include: a. Expand the multi family tax exemption program so that it would be obtainable for a wider range of affordability, additional properties, and groups of buildings consistent with state law. b. Completing the transitional and emergency shelter code amendments in accordance with HB 1220. The City and County planning commission met and jointly approved a set of consistent regulations. Respectfully submitted on behalf of the Port Townsend Planning Commission, " . ....�..--- .__w........_... - �Y�..� � �.��.�_.a.�.3 ._._._ m� Lois Stanford, Chair Date June 7, 2023 Historic Preservation Committee City of Port Townsend 250 Madison Street Port Townsend, WA 98368 Richard Berg, Chair Historic Preservation Priorities: Last year, in my role as the Chair of HPC, I encouraged City Council to take actions to work toward easing the housing shortage in Port Townsend. I believe that a healthy housing market is one important tool in the toolbox needed here to accomplish effective historic preservation. So would like to compliment City Council and the administration on the work that has been done this past year to tackle that difficult problem. As far as HPC priorities go, there are two unfinished pieces of business that have been hanging around this Committee for some time, and no progress has been made during the past year. So they remain the top priorities of this committee for 2024. We have unfinished guidelines regarding windows, solar panels installations, landscaping walls, and exterior lighting. These sets of guidelines have been drafted and almost finished for several years now, and it would be helpful to get them completed and added to our other guidelines that are available for use by the public. I believe that all it would take would be some staff time allocated to finish up these guidelines, and then to usher them through the City Council approval process. In addition to the unfinished guidelines, other sets of adopted guidelines are becoming dated in various respects, and some staff time devoted to working with the Committee to update all of our guidelines would be helpful. 2. The Historic Property Inventory work that was undertaken some time ago was completed and mapped inside the Historic District. That map is available on the City website, and is very useful. Some additional Inventory work was done in neighborhoods adjacent to the Historic District, with the thought that work would continue and eventually historic properties throughout the entire city would be inventoried and mapped. However that effort has been stalled for several years. I believe it would take grant funding and hiring of an intern to continue and complete this work, as that's how it was undertaken previously. The goals and work of the HPC would benefit greatly from the completion of this initiative. In addition to that unfinished business, we understand ourselves to be a Committee that has been charged with overseeing compliance with the Secretary of the Interior's Guidelines, and other local Historic Preservation guidelines, in the City of Port Townsend. From time to time, items come before us that bring to mind the disconnect between historic preservation review at Fort Worden, which is inside the City Limits of Port Townsend, and historic preservation review in all of the rest of the City. Last year, we suggested that in order to bridge over that gap in a small way, arrangements be made with the preservation office at State Parks such that the HPC is notified when applications are made to their office for Historic Preservation review, and that we also be notified of decisions that are made by their office. This would serve to keep us informed with regard to projects and preservation review at Fort Worden, and also familiarize us with State Parks' methods and interpretation of Guidelines in their review and decision-making process. This would give us a better understanding of the full scope of Historic Preservation work that takes place in our City. I would imagine that negotiating such an arrangement could take some staff time, and perhaps volunteer time for committee members as well. Nothing was done last year to move this initiative forward, so we would like to once again suggest that follow up be done regarding this type of outreach to State Parks. Thank you for this opportunity to offer input! Richard Berg, Chair Historic Preservation Committee From: John Mauro To: Alyssa Rodrigues Subject: FW: letter from the Mayor to advisory body chairs Date: Friday, July 7, 2023 2:35:40 PM Attachments: imaae002.nna imaae003.nna Please include this in the packet. Thank you! John Mauro I City Manager City of Port Townsend I wv7r°vv.sJtv�ohr)[,uss 250 Madison Street, Suite 2 1 Port Townsend, WA 98368 P: 360.379.5043 1 M: 360.531.2916 Follow us on Facebook: (Er.rraa / :'isW r fY'7 Help steer our future together with Engage PT:fww.r:ita�v i!.ar/r,°riafae From: Nhattaleah Nichols <nhattnichols@gmail.com> Sent: Friday, July 7, 2023 1:58 PM To: John Mauro <JMauro@cityofpt.us> Subject: Re: letter from the Mayor to advisory body chairs Dear City Manager and Mayor, The Port Townsend Arts Commission would like to offer the following answers to your questions: • What 2-3 priorities do you and your board believe are most important to consider as part of the overall City work plan and related to your purpose and role as an advisory body? How do such priories align with existing work or foundational plans like the Comprehensive Plan and/or functional plans? For PTAC, our priorities are supporting art and artists in our community. We feel like the city has sidelined art as a priority, and we ask City Council and the City Manager to approach their work plan with the question of how it could include more art, play, and curiosity. I know that, traditionally, arts have been seen as an extra in civic priorities. But when you look at towns that have prioritized the role of artists in civil discourse, you find a more engaged and informed citizenry. As an example, I just returned from a conference in Fergus Falls, Minnesota, where they had The Year of Plav, an Our Town grant -funded program that encouraged artists to propose micro -grant projects, which encouraged citizens to engage with city infrastructure projects. Art shouldn't be considered separately from other aspects of a city that has "art community" on the entrance sign. Let's find more ways to support art and artists across the entire city work plan. 9 What has gone well this year that we should learn from or consider more broadly? The Poet Laureate program has already been a great success. Finding more ways to bring art directly to citizens and support working artists is an idea that should be expanded. Can we have an artist in residence in city hall? Or even an official Jefferson Transit artist in residence? These are ideas that are being explored in other rural areas, and I know we would also benefit from an expanded residency program. e What Advisory Board work from this or previous years is incomplete and should be considered for continuation in 2024? I don't feel like there is a clear public art policy that makes it easy for citizens to understand how new art is commissioned in Port Townsend. I would like to see the city and PAC develop very clear guidelines in plain English. Are there things we should stop doing or do differently, both at strategic and operational levels? I would like to see more understanding of the role of PTAC from both City Council and City Management. * What else should we be considering? Ways to utilize your new communications manager that encourages engagement with public policy beyond informational meetings. On Mon, Jul 3, 2023 at 4:34 PM John Mauro <JMauro(@cityofpt.us> wrote: Dear Advisory Body Chairs Thank you to those who have submitted responses regarding the 2024 City workplan as per the invitation letter sent by Mayor Faber last month (attached). For those who still wish to do so, we'd love to hear from you. While Mayor Faber indicated in his invitation letter that we will be holding the all -day retreat on 7/10, we did not yet know the time your responses would be read and discussed at the meeting. The full agenda is forthcoming, but we wanted to let you know that Council or staff liaisons will read your letters from 1030-11am on 7/10. If you wish to join us at that time to read your body's letter yourself, you're more than welcome to do so. Similarly, you'd be welcome to join for entire all -day retreat if you're interested/able. Please don't hesitate to be in touch with any questions. And thank you for your service to our community! Warm wishes, John and Team PT John Mauro I City Manager City of Port Townsend I www .r;it: or :rt:.us 250 Madison Street, Suite 2 1 Port Townsend, WA 98368 P: 360.379.5043 1 M: 360.531.2916 Follow us on Facebook: fb.rrw.10vo(P-f Help steer our future together with Engage PT: w1w1 i.r itv foc . u ,1(,mV:BfW From: John Mauro Sent: Monday, June 5, 2023 2:00 PM To: nhattnichols(@email.com; dbiahnke(@att.net; richard(@terrapin-arch.com; lois.stanford(@ualberta.ca; iacqueline.mention 2gmail.com; cindyi9ll@4ahoo.com Cc: David Faber <DFaber(@cityofpt.us>; Heidi Greenwood <HGreenwoodPcityofpt.us>; Shelly Leavens <sleavens(@cityofpt.us>; Steve King <sking(cDcityofpt.us>; Melody Eisler <MEisler(@cityofpt.us>, Emma Bolin <ebolin(@cit)zofpt.us>; Judy Surber <isurber(@cityofat.us>; John McDonagh <imcdonagh(@cityofpt.us> Subject: letter from the Mayor to advisory body chairs Dear Advisory Body Chairs (City Council bcc'd, staff liaisons cc'd) Can you believe it? It's time to start thinking about the 2024 workplan. Please find the attached letter from Mayor Faber soliciting your high-level input and ideas as we start to work through the workplan process. Thank you for your service to the community, John and Team PT John Mauro I City Manager City of Port Townsend I www.cityofpl_.us 250 Madison Street, Suite 2 1 Port Townsend, WA 98368 P: 360.379.5043 1 M: 360.531.2916 Follow us on Facebook:.fb.melC'it o P Help steer our future together at www.cityofat. us/enc cae CITYOFPT NOTICE REGARDING PUBLIC DISCLOSURE: Public documents and records are available to the public as required under the Washington State Public Records Act (RCW 42.56). The information contained in all correspondence with a government entity may be disclosable to third party requesters under the Public Records Act.