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Home My WebLink About2006 Final BudgetCity of Port Townsend Final Budget 2006 Table of Contents Page CityManager Budget Message ........................................................................................... ..............................i CityOfficials ..................................................................................................................... ..............................1 Citizen Advisory Boards, Commissions, and Committees ................................................ ..............................2 Overview.......................................................................................................................... ............................... 3 BudgetPolicies .................................................................................................................. ..............................5 BudgetSummary .............................................................................................................. .............................11 FundSummary ................................................................................................................ .............................12 GeneralFund Summary .................................................................................................... .............................13 GeneralFund Revenues .................................................................................................... .............................15 General Fund Departmental Budgets Legislative— City Council ............................................................................................. .............................17 CityManager ................................................................................................................. .............................19 CityAttorney ............................................................................................................... ............................... 21 CityClerk ...................................................................................................................... .............................24 PEGAccess Studio ...................................................................................................... .............................27 Development Services Department .............................................................................. .............................29 FinanceDepartment ....................................................................................................... .............................33 PoliceDepartment ......................................................................................................... .............................36 Facilities Maintenance and Public Restrooms Department ........................................... .............................40 Non - Departmental ....................................................................................................... ............................... 41 FundEquity Transactions .............................................................................................. .............................42 Special Revenue Funds DrugEnforcement Fund ........................................................................................... ............................43, 47 ContingencyFund .................................................................................................... ............................43, 47 Community Development Block Grant Fund ........................................................... ............................43, 48 LodgingTax Fund .................................................................................................... ............................43, 50 Community Services Fund (Service Providers, Parks, Recreation and Pool Departments) .................45, 51 Fire Equipment Joint Maintenance Fund .................................................................. ............................44, 48 SystemDevelopment Charge Fund .......................................................................... ............................44, 49 StreetFund ............................................................................................................... ............................45, 62 Fire and EMS Department Fund ............................................................................... ............................45, 52 LibraryFund .................................................................................................................. .............................54 Public Works Administration and Engineering Fund .................................................... .............................58 Debt Service Fund GeneralGovernment Debt Service ................................................................................ .............................65 UtilityDebt Service ....................................................................................................... .............................68 Capital Project Funds CapitalImprovement Fund ....................................................................................... ............................71, 73 City Hall Annex Construction Fund ......................................................................... ............................72, 74 Fire Station Construction Fund ................................................................................. ............................72, 75 UtilityConstruction Fund ......................................................................................... ............................72, 76 CapitalImprovement Plan ............................................................................................. .............................77 Enterprise Funds & Trust Funds Water /Sewer Utility Fund ...................................................................................... ............................... 83,92 StormwaterUtility Fund ........................................................................................... ............................93, 94 EquipmentRental Fund ................................................................................................. .............................95 Firemen's Pension and Relief Fund ............................................................................... .............................96 City of Port Townsend Final Budget 2006 Table of Contents Transmission Line Replacement Fund ............................................................................. .............................97 MemorialFund ................................................................................................................. .............................98 GolfCourse Fund ............................................................................................................. .............................99 Miscellaneous- Appendix BudgetCalendar ............................................................................ ............................... ............................100 LegalStatutory Debt Margin ......................................................... ............................... ............................102 Property Tax Levy by Taxing District Chart ................................. ............................... ............................103 TaxLevy Rate History .................................................................. ............................... ............................104 PersonnelServices ......................................................................... ............................... ............................105 Employee FTE (Full Time Equivalences) Table ........................... ............................... ............................108 Glossary......................................................................................... ............................... ............................109 City of Port Townsend Final Budget 2006 City of Port Townsend 'PORT 74 Office of the City Manager Waterman & Katz Building 181 Quincy Street, Suite 201, Port Townsend, WA 98368 (360) 379 -5047 FAX (360) 385 -4290 MEMORANDUM TO: City Council FROM: David Timmons, City Manager RE: 2006 Budget DATE: December 2005 I am pleased to submit for your consideration the final budget plan for fiscal year 2006. The attached documents represent a combined effort on the part of many city staff members and particularly the Finance Department. I want to extend a thank you to all who have contributed in this effort, especially the City Council. The format is generally the same as last year; however, we have "cleaned up" the look of the document hoping that you will find it more understandable. The document is organized to reflect the status of the various management funds that are prescribed by law. Contained within these are the various operating centers of city services. For the most part, the budget plan is a "status quo' document. We have and will submit suggestions for the year 2006; however, the basic operating program is maintained. Overall our revenues appear stable. Expenses in most categories are stable with some areas that are problematic. We have suggested some adjustments to address those areas of concern. Areas that will demonstrate noteworthy changes are Fire/EMS and Equipment Rental. Fire/EMS is subject to the next phase of consolidation implementation. Equipment Rental details a new program initiative to consolidate and develop a self - balancing technology component to the Equipment Rental Fund. Probably the most dramatic personnel change is in the funding and status of the Fire/EMS Fund. This will result in an adjustment to the staffing levels (FTE) comparison since Fire/EMS staff of the City will become employees of the District. We are also addressing some areas we believe would more efficiently be done by City employees rather than contractors. These include public safety analysis, facilities maintenance and IT Services. We are recommending adjustments to include new hires for these services. There are options that could generate more revenue, but would require policy decisions by Council before they could be relied upon, so they have not been included. The following is a list of 2006 budget programs by fund: General Fund Undesignated revenues are estimated based on trends that we have identified. Modest growth and status quo are the norm. All activity centers will reflect a new IT rental service cost payable to the Equipment Rental Fund. All IT equipment and services will be paid through the ER Fund and not separately budgeted in individual areas of the budget. Council expenses reflect salary adjustments to incorporate the new pay scale for Council. City manager is status quo. City Attorney reflects the addition of District Court costs paid to the County. This is only a transfer to a new cost center. DSD Special Projects is presented with the Long Range Planning Directors position vacant. This will require Council deliberation and discussion on the proposed work plan and funding before its inclusion in the budget. It does include a $50,000 CDBG grant to be expended during the year for the Housing Needs Assessment. DSD is presented with Revenue to Expense, with expenses exceeding program revenues by $23,705. This will be credited against the unassigned General Fund revenue. Finance is status quo with the following exceptions. There is a new hire to replace a position cut three years ago to maintain business license and accounts. We have also reallocated staff costing between Finance in the General Fund and the Utility Billing to more accurately reflect cost accounting. Police program revenues have been adjusted to reflect previously allocated County contract services: Jail, Dispatch, Liquor Excise Tax and Animal Control. This will give the department more say in how the funds are allocated and whether or not the services are meeting the most critical needs. Also included are revenues for jail recovery costs. Police expenditures are status quo until we can achieve cost containment with the aforementioned County services contracts. City Clerk is status quo with the following exception. I have reallocated the part time employee previously allocated to PEG for filming Council meetings to the Clerk's budget center to more accurately reflect actual supervision. City Facilities is status quo except that I am recommending we hire a full time maintenance staff person to perform janitorial services currently provided by contract. This will help with continuity of the service as well as succession planning with staff. Public restrooms are status quo for the year. Non - departmental /Contracts are now allocated to departmental centers that are appropriate. This includes for the most part the county contracts for IT, Health, Jail, Dispatch and District Court. ii Safety is status quo. PEG is status quo except for the part time position allocated to the Clerk's budget. The revenue and expense are based upon our estimate of trends for the revenues received from services provided through cable subscriptions. The GF reserves are maintained within the policy goal. Also there is a restricted component of $200,000 within the balance that represents the judgment settlement received this year. The unrestricted balance remains within the adopted policy goal. Special Revenues Drug Enforcement and Education Fund will not have any funds available. Contingency Fund is at the maximum and does not require any additional contribution. Street Fund is funded at the minimum required. Current revenue balances to current expense. There is a cash reserve of $130,400 to fund delayed projects from this year. The new gas tax revenue that may be repealed is budgeted as a contingency. The balance of the street program is in the Capital Fund. Library Fund is status quo with following exceptions. There is an increased cost for IT services with the countywide (CLAN) system upgrade. We have received a resignation and I have removed that position to compensate for the increased IT costs. This will be necessary until we can consider alternative revenues for the Library. Public Works Administration is status quo. Lodging Tax is based upon my best estimate based on LTAC committee discussions. There will be adjustments after the October meeting of the Advisory Committee. Fire Equipment Joint Maintenance Fund is status quo. Fire/EMS Fund is presented consistent with requirements of the consolidation efforts. The contribution is predicated upon retaining funds to cover the remaining staff, debt service and equipment rental. It represents a net savings to the General Fund of an estimated $85,000. CDBG Fund represents anticipated loan activity for the year. SDC Fund represents status quo. Consideration may be given to increase reserves by adjusting fees based upon Construction Cost Index inflation. Community Services Fund. Parks Maintenance and Pool are status quo. I have added a new division for Events. This will give us a cost center for the Event Coordinator activities and revenues. General Government Debt Service Fund iii Revenues and expenses are balanced consistent with the annual debt service requirements. LID Debt Service Funds. These are balanced and maintained based upon need. Capital Project Fund The CIP program is based upon authorized and anticipated projects for the year 2006 and beyond. These are multiple year programs and the budget only reflects the 2006 anticipated revenue and expense activities. Parks and General projects for 2006 will be the Pool, Wave Viewing Gallery, trestle removal and completion of the Skate Park. City Hall Renovation will follow through with project completion in 2006. Street CIP will vary based upon external funding. Individual projects will be presented to the Transportation Committee. The most notable project will be the next phase of the intersection improvements to Sims and Howard. Fire Station CIP will be closed out and may be amended if funding for the new Police Station is awarded. Enterprise Fund and Trust Fund Water /Sewer Utility. Revenues are reported based upon trends. It appears the recent rate adjustments are in line and meeting the objectives. We may wish to consider an index adjustment to keep current with inflation. Expenses within the various divisions are status quo for the most part. The Utility Billing Division has had payroll adjusted to realign its staff allocation to more accurately reflect current demand. Stormwater Fund. The revenue and expenses reflect status quo. Council may elect to adjust rates based upon construction cost index. Utility Construction Fund. There area variety of small projects that are scheduled for 2006. These will be detailed in our discussions with the General Government Committee. OGWS Transmission Pipeline Trust Fund. This is a service fund and pays for special project related costs to the OGWS water system. The amount budgeted is a placeholder. The balance of the funds contained on pages 60, 61 and 62 are service funds and comply with the contractual debt service established. Equipment Rental Revolving Fund. The fund revenue and expenses are consistent with our strategy to address amortization of a replacement vehicle at a rental rate reflecting current replacement cost. The largest vehicles are the fire apparatus and may be transferred to the District under the consolidation strategy. Otherwise they are funded in this fund for 2006. lv Details of scheduled vehicle replacement will be presented to the General Government Committee. The new Information Services Division is a consolidation of technology services for the City. What we have done is calculated a rate to charge all departments based upon number of email accounts. Based upon this program revenue we drafted a program budget. This program consists of the City retaining its own IT staff support person. Equipment costs will be separately scheduled to the individual department as upgrades occur. This program will not utilize funds already allocated for machinery equipment. We cannot by law do that. Firemen's Pension Fund. This is a restricted fund and is prescribed. Court Agency Fund. This is a non - budgeted pass through fund and presented only to maintain proper page placement. Memorial Fund. This is a fund for receipt of gifts or donations to the City. Golf Course Fund. This is a new fund to report restricted revenues generated from the golf course lease. Funds can only be used for golf course improvements. NW Maritime Center Agency Fund. This is a special restricted fund to account for pass through funds allocated for the benefit of the NW Maritime Center Project. Finally, a budget is managed document that continuously evolves during the year. Several issues and policies were deferred into 2006 and will be addressed as supplemental times in 2006. These matters will be presented to Council during their retreats and consideration by Council may or may not bear budgetary impacts. Those policy matters that will result in impacts will be managed by Council Committees during the fiscal year. v City Officials COUNCILMEMBERS Geoff Masci Term expiring December 2007 Laurie Medlicott Term expiring December 2007 Frank Benskin Term expiring December 2007 Catharine Robinson Term expiring December 2007 Freida Fenn Term expiring December 2005 Kess Kolff Term expiring December 2005 Michelle Sandoval Term expiring December 2009 Scott Walker Term expiring December 2009 Mark Welch Term expiring December 2009 CITY MANAGER David Timmons DEPARTMENT DIRECTORS Public Works Director Kenneth Clow Development Services Director Leonard Yarberry Finance Director Michael Legarsky Fire Chief Mike Mingee Paliep Chief Conner Daily Library Direector Theresa Percy City Attorney John Watts City Clerk Pamela Kolacy -1- Citizens Advisory BOARDS, COMMISSIONS AND COMMITTEES (as of 10 -2005) ARTS COMMISSION Beatus Meier Frank Vane StanleyRubin Donna Bickley Nancy Newman Joey Pipia Larry Thomas Lucy Congdon Hanson CIVIL SERVICE COMMISSION Ronald V. Kosec Gail A. Ryan vacancy PARKS & RECREATION Patsy Caldwell Marilyn Muller Rosemary Sikes Monica Mick -Hagar Ken Schordine Helene Fatt Barbara McColgan Pastore PLANNING C Lyn Hersey Roger Lizut Harriet Capron Cindy Thayer Liesl Slabaugh 'OMMISSION George D. Randels Steven Emery Jeff Kelety Alice King HISTORIC PRESERVATION Roger Lizut Barbara Marseille Michael Colbert Richard Berg Sebastian Eggert Marsha Moratti Vacancy LIBRARY ADVISORY BOARD Bill Maxwell Eileen Price Deborah Carroll Lawrence Thomas Kate Schumann NON - MOTORIZED TRANSPORTATION COMMITTEE David Thielk Marion Huxtable Owen Fairbank Chris R. Jones Julie Duke Jane Whicher Melinda Bower Jolly Wahlstrom Peter Lauritzen Vacancy P.E.G. ACCESS COORDINATING COMMITTEE Gary Nelson John Watts Theresa Percy Julian Ray Kitti deLong Geoff Masci Tom Opstad Karen Johnson AFFORDABLE HOUSING TASK FORCE Vanessa Brower LeRoy Hornbeck Vacancy Steven Emery Mike Yawman Margaret Maxwell Vacancy Vacancy Vacancy LODGING TAX ADVISORY COMMITTEE Laurie Medlicott Jim Pivarnik Lawrence Graves Tim Caldwell Mari Mullen Steve Shively Cliff Carpenter Steven Kraght John Eissinger Keven Elliff Dave Robison Tim Stover -2- General Fund Revenues The City of Port Townsend provides what are considered general governmental services authorized by state law, including public safety, streets, parks and recreation, planning and zoning, permits and inspections, general administration, water, resources. The funds are segregated for the purpose of carrying on specific activities or attaining certain objectives. Funds are budgeted on a cash basis in accordance with the Revised sewer and storm services, garbage and Code of Washington (RCW) 36.33. library services. OVERVIEW Budgeting is an essential element of the financial planning, control, and evaluation processes of government. The planning process involves determining the types and levels of services to be provided and allocating available resources among various departments, programs or functions. Financial control and evaluation procedures typically focus upon assuring that fixed expenditure limitations (appropriations) are not exceeded, and on comparing estimated and actual revenues and expenditures. The budget authorizes and provides control of financial operations during the fiscal year. Upon adoption, the expenditure estimates, as modified by the Council, are enacted into law through the passage of an appropriations ordinance. The appropriations constitute maximum expenditure authorizations during the fiscal year, and cannot be exceeded until subsequently amended by the Council. Expenditures are monitored through the accounting system to assure budgetary compliance. The City of Port Townsend's accounting and budgeting systems are organized and operated on a fund basis as required by state law. A fund is defined as a fiscal and accounting entity with a self - balancing set of accounts recording cash and other financial While typically thought of as a financial activity done to satisfy state law, budgeting is a process of planning. Fiscal planning involves all elements of government and should be considered one of the most important functions for city officials. The process of budgeting will not only allocate fiscal resources to meet needs and provide services, but will set a direction for the future. The elements of good planning include identifying community needs, city resources, the capability to meet community needs, and a plan to match such resources to the needs. The planning for this document starts with the Council retreat in early spring. At that retreat Council discusses many issues including program priorities and capital project prioritization and timing. The City Manager's budget is presented to the full Council during several work sessions in October. Two public hearings are then scheduled for November with a final public hearing and adoption date in early December. Related to this process is the City's Capital Facilities Plan as required by the Growth Management Act (GMA). This plan has significant requirements in the area of facilities planning and capital improvement financing. The GMA is to ensure that those public facilities and services necessary to support -3- General Fund Revenues development shall be adequate to serve the development at the time the development is available for occupancy and use, without decreasing current levels of service below locally established minimum standards. The Capital Facilities Plan (CFP) is segregated into major categories: General Governmental, Transportation, Water, Sewer, Storm and Surface Water and Parks and Recreation. The City adopted a Capital Facilities Plan as part of the Comprehensive Plan. Subsequent Council policy decisions and amendments to the Comprehensive Plan require periodic review and amendments to the Capital Facilities Plan. This budget document is developed in a manner to study and review the direction of the City of Port Townsend. This document outlines the manner in which financial resources will be managed during the fiscal year. The course the city is taking can be changed through the allocation of financial resources. The major groups who participate in the budget process are the City Manager, City Council, department directors, city committees and commissions, city staff, and interested Port Townsend citizens. A budget document is read by a diverse group of persons. The budget must describe clearly and completely the nature and scope of policies, plans and programs for the year. It must communicate this information at different levels and for different purposes. One of the most important functions of the budget document is to describe future implications and relationships of policies, plans and programs to members of the public. The budget document is an opportunity for the public to acquire background information necessary to provide meaningful comment and feedback to members of the City Council and City staff during the year. The City of Port Townsend's budget process is designed to provide essential structure for the financial planning, control, and evaluation process of government, presenting a forecast of expected resources and the purposeful distribution of those revenues. Once adopted, the budget is a formal expression of public policy on the City's objectives and priorities and on how resources will be provided to meet those objectives. State law establishes the budget process and time limits. The calendar for the City of Port Townsend's budget can be found at the end of this document in the addendum section. The financial aspects of the budget are monitored in regular monthly reports issued by the Finance Department comparing actual expenditures and revenues with the budget. The budget can be changed (amended) at any time after it is adopted by the City Council passing another ordinance in an open public meeting. Normally, the budget is reviewed during the year to identify any adjustments. In the City of Port Townsend, policy begins with general direction provided by the City Council. The City budget process serves the function of creating a framework to implement the policies set forth by that body to administer the City organization and deliver the various services to the community. 'a General Fund Revenues Under the general guidance of the City Manager, department directors have primary responsibility for formulating budget proposals in line with Council priorities. Budget policy begins with an understanding of the needs and issues important to the community that the government serves. General goals and priorities are identified in order to apply the available financial resources of the City for specific funding proposals. Previous budgets are considered in this process, thereby providing continuity with previous programming. The Finance Department is responsible for coordinating all aspects of the budget process on behalf of the City Manager, analyzing department budget information, preparing budget revenue estimates, assembling the budget document and providing overview financial monitoring and reporting once the budget is adopted. The Finance Department assists in identifying budget problems, formulating solutions and alternatives, and implementing corrective action approved by the City Manager. The City uses a line -item budget development approach and uses that level of detail as a backbone to the actual budget document. However, the budget is formally adopted at the fund level. This budget seeks to achieve these four interrelated functions: A Policy Tool The City's budget process is conducted in a manner that allows City's officials an opportunity to comprehensively review the direction of the City and to redirect its activities by means of the allocation of financial resources. On this basis, the budget sets policy for the following year. This budget also facilitates the evaluation of City programs by providing a means to measurably examine the financial activities of the City departments over time. An Operations Guide This budget provides financial control by setting forth both legislative and administrative guidance to city employees regarding the character and scope of their activities. This direction is set forth in both summary and detail form in the various products of the budget process. A Financial Plan The budget outlines the manner in which the financial resources of the City will be managed during the budget period. This allocation of resources is based on understanding both the current year's needs and a long -term view of the development of the City's programs. The budget takes into account unforeseen contingencies and provides for the need for periodic adjustments. As a Communication Medium This budget provides management information as a comprehensive tabulation of information regarding both the character and scope of City activity. No budget can be effective unless it communicates. Since this budget has a diverse audience, it seeks to communicate at several levels and for several purposes. It seeks to communicate clear policy at a usable level of detail to City employees, to communicate significant policy issues and options in a form that can be acted on by officials, and to communicate the plans of the City to its constituents in a manner which affords them an opportunity -5- General Fund Revenues to provide meaningful comments to the elected officials. BUDGET SUMMARY While the budget planning and adoption process is discussed above, there are many issues that are important to discuss in order to understand the dynamics of this document. For financial and accounting purposes, municipal operations are divided into two broad categories: general governmental and proprietary. Budgets are established for all funds. There are 28 budgeted funds in the City of Port Townsend and they are classified within seven basic fund groups, as described below General governmental funds include three funds. The first is the General Fund which provides basic City services such as city administration, legislative, legal, personnel services, risk management, financial services, public safety, street maintenance, planning, building, zoning, facilities, and associated support functions. The resources to support these activities are primarily taxes and user fees. Special Revenue funds account for the proceeds of specific revenue sources other than special assessments, expendable trusts or major capital projects. These revenues finance particular activities or functions as required by law or administrative regulations. Debt Service funds accumulate resources and account for the payment of principal and interest for the City's general obligation long -term debt and special assessment debt. The City pledges its full faith and credit for payment of these obligations. • Resources for redemption of Council- approved (limited) issues are usually from the general property tax levy. • Resources for payment of special assessment debt are from assessments levied against benefited properties. • Resources for redemption of revenue bonds are from the sales of the goods and services. The debt service funds are the General Obligation Debt Service Funds, and the Water /Sewer Revenue Bond Funds. Capital Project funds account for the acquisition or development of major capital facilities, except those projects financed by the enterprise funds. Sources of revenue for these funds can include bond proceeds, federal /state grants, general property taxes, interest earnings, and transfers from other funds. Enterprise funds are established for government activities that are financed and operate in a manner similar to private business. The user primarily finances costs of providing services to the general public. There are two types of enterprise funds. They are the Water /Sewer Fund and Storm and Surface Water Fund. Internal Service funds account for the financing of goods and services provided by one department or agency to other departments or agencies in the City. The City's internal service fund is the Equipment Rental and Reserve Fund. Fiduciary funds include Pension Trust, Expendable Trust, and Agency Funds, which are used to account for assets held by the City in a trustee capacity or as an agent for individuals, private organizations, other governmental units, and /or other funds. The City has five of these funds, which are: M General Fund Revenues • Firemen's Pension and Relief • Transmission Line Replacement • Treasurer's Agency • Deferred Compensation- Kemper • Deferred Compensation -ICMA • Memorial • Golf Course • Northwest Maritime Center GENERAL FUND REVENUES The City's General Fund receives the greatest amount of its operating revenues from a variety of taxes. State law limits those taxes. Property Tax Property taxes are collected on 100 percent of assessed valuation (A.V.) as determined by the Jefferson County Assessor's Office in accordance with state law. The maximum that the City can levy is 101 percent of the highest of the three (3) most recent years' levies, plus the impact of new construction at the previous year's levy rate, plus miscellaneous adjustments. The new construction assessed value amount for 2006 is estimated at $36,000,000 as compared to $23,800,000 in 2005. State statutes do not allow the city to levy more than $3.60 per $1,000 of assessed valuation. The City of Port Townsend is well below the statutory limit, and it is at $1.40 per $1,000 of assessed valuation for 2006. In November 2001, the voters of the state approved Initiative 747, which sets limits for annual increases in property taxes to 1% without a vote of the people. In November of 1997, the voters of the state approved Referendum 47, which sets limits in three areas for property tax: 1) The State tax levy increases now annually limited to the lesser of the I.P.D. inflation factor or 1 %; 2) The 1997 temporary tax reduction was made permanent; and 3) A new limit factor for the local jurisdictions on property tax. As previously stated cities still are limited to 101 %, but now there is an inflation factor called an implicit price deflator (IPD). The IPD for personal consumption in the United States is published for the most recent twelve -month period by the Bureau of Economic Analysis of the Federal Department of Commerce in September of the year before the taxes are due. Following this definition the percentage change in the IPD has been calculated at 2.778 percent for 2006. As the referendum provides, cities may go above the IPD to any percentage up to the 101 percent. In order to levy the full 101 percent, a substantial need must exist, and a resolution or ordinance must be adopted by a supermaj ority of the City Council. Those provisions of Referendum 47 do not limit Cities under a population of 10,000. Property Tax Levy Rate by District District 2002 2003 2004 2005 2006 PUD $0.14535 $0.11405 $0.10570 Port $0.24295 $0.23940 $0.22822 City EMS $0.43312 $0.43594 $0.43941 Hospital $0.49913 $0.47605 $0.11526 County $1.84182 $1.83214 $1.76360 City Gen. $1.91157 $1.92767 $1.94483 State $2.93627 $2.86989 $2.81487 Local Sch. $3.24339 $3.46895 $3.40501 County Fu. $0.05853 $0.05827 $0.05555 Totals $11.31213 $11.42236 $11.19749 $0.09880 $0.10826 $0.22038 $0.21000 $0.44585 $0.31544 $0.41705 $0.36373 $1.76250 $1.57006 $1.97334 $1.39798 $2.76464 $2.55206 $3.11351 $2.24764 $0.05388 $0.04900 $10.81370 $8.81417 -7- General Fund Revenues City Regular Levy The City remains highly dependent on property tax revenues, as other revenue sources are not increasing sufficiently to meet the basic needs in providing necessary services. 2.00% 1941 Rate City EMS Levy Assessed Property Per 1965 Valuation Tax $1,000 1997 $490,190,800 $1,091,268 $2.22621 1998 $566,060,010 $1,184,232 $2.09206 1999 $571,156,455 $1,275,369 $2.23967 2000 $581,462,160 $1,304,964 $2.24428 2001 $598,546,125 $1,333,740 $2.22830 2002 $714,495,450 $1,365,808 $1.91157 2003 $730,161,880 $1,407,511 $1.92767 2004 $753,279,600 $1,465,001 $1.94483 2005 $775,296,585 $1,529,923 $1.97334 2006 $1,156,702,595 $1,617,047 $1.39798 The City remains highly dependent on property tax revenues, as other revenue sources are not increasing sufficiently to meet the basic needs in providing necessary services. 2.00% 1941 3.00% City EMS Levy 3.30% 1959 4.00% 1965 Rate 1967 Assessed Property Per 1979 Valuation Tax $1,000 1997 $490,190,800 $122,548 $0.25000 1998 $566,060,010 $132,209 $0.23356 1999 $571,156,455 $139,862 $0.24609 2000 $581,462,160 $290,731 $0.50000 2001 $598,546,125 $299,273 $0.50000 2002 $714,495,450 $309,462 $0.43312 2003 $730,161,880 $318,307 $0.43594 2004 $753,279,600 $330,999 $0.43941 2005 $775,296,585 $342,666 $0.44585 2006 $1,156,702,595 $364,870 $0.31544 Retail Sales & Use Tax Retail Sales and Use Tax consists of two city portions. The first portion is a local tax of one -half of one percent less fifteen percent paid to the county. The second portion includes an "optional" one -half of one percent, less the fifteen percent county share. This provides a combined city portion of 0.0085 from each dollar of local sales. This was authorized by the State Legislature in 1982 and further authorized by the city and provided for in Port Townsend's Municipal Code Title 3, Chapter 3.12. The sales tax was adopted in 1935 as an integral part of the Washington State Revenue Act. The state's portion of the sales tax history is: Year Rate 1935 2.00% 1941 3.00% 1955 3.30% 1959 4.00% 1965 4.20% 1967 4.50% 1976 4.60% 1979 4.50% 1981 5.50% 1982 5.40% 1983 6.50% There has been no adjustment to the state's portion since 1983. City Sales Tax Collections Year Amount 1997 $1,052,047 1998 $1,079,409 1999 $1,146,378 2000 $1,122,584 2001 $1,347,379 2002 $1,364,042 2003 $1,440,383 2004 $1,555,448 2005 $1,701,688 2006* $1,765,600 * = estimated Business and Occupation (B&O) Tax The business and occupation tax was imposed in 1968 with the adoption of Port Townsend Municipal Code Title 5, Chapter 5.04. This tax applies to the gross income of businesses at the rate of 0.002. This tax is due and payable in quarterly installments: March, June, September and December. B &O Tax Collections Year Amount 1995 $257,569 General Fund Revenues 1996 $262,360 Class H licenses, the profits are divided 1997 $269,241 among the state, counties, cities, and towns. 1998 $287,864 1999 $298,308 2000 $299,379 Cities and towns receive a 40 percent share. 2001 $353,538 An additional amount is distributed to 2002 $347,203 border area cities and towns. Cities and 2003 $378,963 towns also receive 28 percent of the liquor 2004 2005 $414,029 $536,150 excise tax receipts. To be eligible to receive 2006* $500,000 liquor taxes and profits, a city or town must * = estimated devote at least 2 percent of its distribution to support an approved alcoholism or drug State Shared Revenues addiction program. State shared revenues are derived from gasoline taxes, liquor receipts (profits and excise taxes) and motor vehicle fuel excise taxes. These taxes are collected by the State of Washington and shared with local governments based on population. The Office of Financial Management determines the population figures used for the distribution of state - shared revenues. Port Townsend's 2006 estimated population is 8,745. Port Townsend should be prepared for lower per capita distributions of state - shared revenues in the future. Liquor Receipts Profits and Taxes Cities and towns are responsible for the policing of liquor establishments located within their limits but are precluded from taxing them because of the state liquor monopoly. The law provides that a share of the state - collected profits and taxes be returned to cities and towns to help defray the cost of policing liquor establishments. Liquor Board profits consist of the difference between revenue from state liquor stores, taxes on wine and beer, license fees, penalties and forfeitures and board expenditures. Except for monies from administrative fees and those attributable to Utility Tax The City imposes a utility tax on telecommunications, electricity, natural gas, and solid waste at the rate of 6 percent. Leasehold Excise Tax Most leases of publicly -owned real and personal property in the state are subject to a leasehold excise tax in lieu of a property tax. The State Legislature in 1976 established a 12 percent tax to be levied on the contract rent. In 1987, the State Legislature increased the rate to a total of 12.84 percent. Cities and counties may collectively levy up to 6 percent of the 12.84 percent. The maximum rate for cities is 4 percent and, if a city levies this amount, the county can levy only 2 percent on leaseholds in the incorporated areas. If a city chooses not to levy its maximum, the county captures the difference to the 6 percent lid. The City of Port Townsend imposes the leasehold excise tax at the rate of 4 percent. Doing so does not affect the rate that leaseholders must pay; it simply determines who receives the money. Q General Fund Revenues Traffic and Parking Fines Although the State Supreme Court establishes the schedule of fines for traffic infractions in the Washington Model Traffic Ordinance RCW Chapter 46.90, cities and towns share in the revenue for infractions committed within their boundaries. After the fines are collected, 35 percent is sent to the state. The remainder is deposited in the General Fund to pay for law enforcement services. Licenses, Permits & Fees The City collects license fees, building permit fees and miscellaneous user fees. Building Permit Fee Collections Year Amount 1996 $167,000 1997 $185,248 1998 $171,528 1999 $281,794 2000 $248,541 2001 $264,687 2002 $308,034 2003 $361,809 2004 $461,887 2005 $423,722 2006* $580,000 * = estimated -10- Budget Summary REVENUES BY SOURCE Budget Budget Increase 2006 2005 <Decrease> Taxes........... ............................... Licenses & Permits ............................... Intergovernmental . ............................... Charges for Services ............................... Proprietary/Utility Services ......................... Fines & Forfeits ... ............................... Investment & Rental Income ........................ Operating Transfers -In ............................ Other Revenue Sources ............................ Total Estimated Revenues & Other Financing ....... Beginning Fund Balances ........................ TOTAL SOURCES -ALL FUNDS $ 6,373,147 $ 5,751,242 $ 621,905 688,871 661,446 27,425 1,403,050 2,684,148 (1,281,098) 2,007,875 2,520,073 (512,198) 5,409,854 4,673,259 736,595 77,300 81,700 (4,400) 336,249 - 336,249 4,679,793 4,989,750 (309,957) 2,322,336 3,515,553 (1,193,217) 23,298,474 24,877,171 (1,578,697) 13,276,983 17,963,186 (4,686,203) S 36,575,457 S 42,840,357 S (6,264,900) EXPENDITURES BY FUND General Fund Legislative .... ............................... Finance ....... ............................... Executive (including City Clerk) ................... Legal Services . ............................... Police........ ............................... City Facilities & Public Restrooms ................ Development Services .......................... Fund Equity Transactions ....................... PEG Access Studio ............................. Non - Departmental ............................. Subtotal General Fund Special Revenue Funds Fire & EMS .... ............................... Library....... ............................... Community Services ............................. Public Works .. ............................... Drug Enforcement and Education .................. Contingency ... ............................... Street........ ............................... Lodging Tax ... ............................... Fire Equipment Joint Maintenance ................. Community Development Block Grant .............. System Development Charges ..................... Subtotal Special Revenue Funds Capital Improvements Fund ........................ City Hall Annex/Renovation ........................ Utility Construction Fund ........................... Debt Service Funds GO Debt Service ............................... Local Improvement District Debt Service ............ Utility Bonds ... ............................... Subtotal Debt Service Funds Proprietery & Trust Funds Water/ Sewer .... ............................... Transmission Line Replacement ................... Storm and Surface Water ......................... Equipment Rental ............................... Firemen's Pension .............................. Golf Course .... ............................... Memorial ...... ............................... Northwest Maritime .............................. Subtotal Proprietary & Trust Funds Total Expenditures - All Funds ..................... Ending Fund Balances ........................... TOTAL USES - ALL FUNDS $ 61,893 $ 108,165 $ (46,272) 293,209 208,612 84,597 424,996 400,205 24,791 303,658 204,584 99,074 1,975,511 1,747,651 227,860 138,864 344,999 (206,135) 758,713 743,405 15,308 2,453,455 2,405,659 47,796 68,839 75,700 (6,861) 108,000 573,509 (465,509) 6,587,138 6,812,489 (225,351) 1,256,767 1,479,947 (223,180) 680,168 658,164 22,004 749,587 670,631 78,956 878,777 874,169 4,608 490,828 569,383 (78,555) 322,609 379,602 (56,993) 60,000 60,000 350.000 650.000 (300.000) 4,788,737 5,341,896 (553,159) 2,995,960 4,323,255 (1,327,295) 900,000 3,836,658 (2,936,658) 780,000 1,640,000 (860,000) 4,675,960 9,799,913 (5,123,953) 624,888 2,095,798 (1,470,910) 5,257 - 5,257 622,845 627,000 (4,155) 1,252,990 2,722,798 (1,469,808) 5,123,204 4,235,747 887,457 118,673 187,021 (68,348) 544,003 615,933 (71,930) 762,782 646,496 116,286 91,829 41,711 50,118 20,000 - 20,000 693,886 632,000 61,886 7,354,376 6,358,908 995,468 24,659,200 31,036,004 (6,376,804) 11,916,257 11,804,353 111,904 S 36,575,457 S 42,840,357 S (6,264,900) -11 - Fund Summary Fiscal Year 2006 1/01/2006 1/01/2007 Estimated 2006 2006 Beginning Fund Estimated Estimated Fund Funds Balance Revenues Appropriation Balance Operating Funds General Fund $ 411,731 $ 6,952,052 $ 6,587,138 $ 776,645 Public Works Admin & Engineering Fund - 878,777 878,777 - Library Fund - 680,168 680,168 - Community Services Fund 5,000 744,587 749,587 - Fire & EMS Services Fund 1 1,256,767 1,256,767 1 LID #1 2,225 - 2,225 - LID #2 3,032 - 3,032 - Drug Enforcement 64 1 - 65 Contingency Fund 150,046 3,001 - 153,047 Street Fund 125,166 407,169 490,828 41,507 Lodging Tax Fund 158,819 328,176 322,609 164,386 Fire Equipment Joint Maintenance Fund 13,932 279 - 14,211 CDBG Fund 60,706 6,214 60,000 6,921 Water Sewer Fund 3,826,350 4,603,155 5,123,204 3,306,300 Stormwater Fund 234,843 467,614 544,003 158,455 Equipment Rental Fund 1,267,391 597,900 762,782 1,102,509 Firemen's Pension Fund 297,718 79,468 91,829 285,358 Operating Fund Subtotals $ 6,557,025 $17,005,329 $ 17,552,949 $ 6,009,405 Capital, Debt, & Trust Funds Capital Improvement Fund 122,108 2,843,970 2,945,960 20,118 Capital Improvement Fund - City Hall Annex 2,219,670 450,000 900,000 1,769,670 Capital Improvement Fund - Fire Station - 50,000 50,000 - SDC Fund 269,739 300,085 350,000 219,824 Transmission Line Replacement Fund 3,224,738 161,253 118,673 3,267,319 G.O. Debt Service Fund 46,571 625,424 624,888 47,107 78 Water Sewer Revenue Bond Fund 46,313 21,426 20,500 47,239 92/98 Water Sewer Revenue Bond Res. Fund 394,876 7,898 - 402,774 92 Water Sewer Revenue Bond Red. Fund 47,400 603,293 602,345 48,348 Utility Construction Fund 341,142 506,823 780,000 67,965 NW Maritime Center Agency Fund 3,027 693,886 693,886 3,027 Golf Course Fund - 29,000 20,000 9,000 Memorial Fund 4,373 87 - 4,460 Capital, Debt, & Trust Fund Subtotals 6,719,957 6,293,146 7,106,252 5,906,852 Grand Totals $ 13,276,983 $23,298,474 $ 24,659,200 $ 11,916,257 Notes: 1. CDBG means Community Development Block Grant. 2. SDC means System Development Charge. 3. G.O. means general obligation. 4. LID means Local Improvement District. -12- General Fund Summary Budget Budget Contribution Estimated Estimated To Revenues Expenditures Fund Balance Estimated Beginning Fund Balance 411,730.81 General Fund Departments City Council $ 5,317,265 $ 61,893 $ 5,255,371 City Manager 0 208,089 - 208,089 City Attorney 0 303,658 - 303,658 City Clerk 7,500 216,157 - 208,657 Development Services- Projects 50,500 112,703 - 62,203 Development Services 622,304 646,010 - 23,706 Finance 581,176 293,209 287,967 Police Admin 70,133 561,004 - 490,871 Police Operations 217,234 1,399,507 - 1,182,273 Police Training 0 15,000 - 15,000 City Facilities 16,500 132,864 - 116,364 Public Restrooms 0 6,000 -6,000 Safety Committee 0 750 -750 Non - Departmental 0 108,000 - 108,000 PEG TV Department 69,440 68,839 601 Fund Equity Transactions 0 2,453,455 - 2,453,455 $ 6,952,052 $ 6,587,138 $ 364,914 Estimated Ending Fund Balance General Fund Balance Reserve % achieved $ 776,645 11.2% - 13 - General Fund Summary General Fund Expenditures By Type Ut ilitiesand Environment 0% Transfers 35% Cultural & Recreation 0% Public Safety 34% General Government Services 20% General Fund Department Expenditures Fund Equity Transactions 35% PEG NDepart ment 1% Non- Depart ment all 8% Safety Commit t eel 0% Public Restrooms 0% Economic Environment 11% Finance 3% -14- General Fund Estimated Revenues Revenue Summary by Category Note: In 2005,the city changed its fund structure which removed the fire department, library, public works administration and engineering, pool, parks maintenance and recreation out of the general fund. The associated revenues and expenes of those departments are now in their own separate fund. - 15 - Budget Actual Increase 2006 2005 (Decrease) Estimated Revenues Taxes $ 5,084,338 $ 4,508,626 $ 575,712 Charges for Services 916,944 1,268,102 (351,158) Licenses & Permits 665,125 637,700 27,425 Intergovernmental 169,367 262,048 (92,681) Miscellaneous Receipts 38,721 59,321 (20,600) Operating Transfers- In 5,257 - 5,257 Fines & Forfeits 72,300 76,700 (4,400) Totals $ 6,952,052 $ 6,812,497 $ 139,555 Note: In 2005,the city changed its fund structure which removed the fire department, library, public works administration and engineering, pool, parks maintenance and recreation out of the general fund. The associated revenues and expenes of those departments are now in their own separate fund. - 15 - General Fund Estimated Revenues General Fund Taxes by Category Leasehold Excise Tax 2% Public Utility - Garbage J 2% Public Utility - Sewer 5% Public Utility - Water 4% Retail Sales Tax - Crim Justice J Retail Sales Tax 2% 31% -16- Legislative The City Council is the legislative branch of the city government within the City of Port Townsend. Policy- making is one of the most important responsibilities of the City Council. The general powers and duties of this body are provided in the Revised Code of Washington Chapters 35A.11 & 35.21. As a comprehensive policy setting directive, the Council develops various master plans. These plans are the foundation for developing the annual final budget. These plans are also opportunities for citizens to have direct input into the major policies affecting the community. City master plans include the GMA Comprehensive Plan, Water Master Plan, Transportation Master Plan, Storm Master Plan (draft), Parks & Recreation Master Plan, Non - motorized Plan, Arterial Street Master Plan, Port Townsend Shoreline Master Plan, Wastewater Collection Plan, Bio Compost Marketing Plan, Library Development Plan, and the Capital Facilities Plan. In developing the master plans, the City Council holds public hearings to allow public input and testimony. This represents hundreds and hundreds of hours of testimony and debate. These master plans are comprehensive and provide fiscal guidance both in the annual budget and the long -term strategic budget development. After master plans are adopted by the Council, the City's department directors develop annual budget requests to implement the master plans. Each director develops budget requests for the City Manager to review. This process results in the City Council debate and passage of the final annual budget in December each year. In the year 2000, the City Council adopted three budget policies to guide the City toward financial stability. Budget Policy #1 - requires the City to maintain a General Fund, beginning fund balance, between 5% to 8% of available General Fund revenues. Budget Policy #2 - requires the City to set aside in a General Fund Council Reserve, 1% of available General Fund revenues. Budget Policy #3 - requires the City to set aside in a Contingency Fund 2% of estimated General Fund revenues. The City Manager established a process to achieve the Council budget policies. This budget has achieved those goals. -17- Legislative Revenues By Program Taxes Licenses & permits Intergovernmental Revenues Charges for Services Fines and Forfeits Miscellaneous Receipts Equity transfers in Less: revenue provided to departments Total Estimated Revenues Expenditures By Program Legislative Services Total Expenditures Expenditures by Object Personnel Operating Expenditures Capital Outlay Total Expenditures Performance Measures: Budget Budget Year Year Increase 2006 2005 <Decrease> $ 4,482,523 $ 4,508,626 $ (26,103) 26,000 637,700 (611,700) 250 262,048 (261,798) 775,664 1,268,102 (492,438) - 76,700 (76,700) 32,828 59,721 (26,893) (5,255,371) (6,704,732) 1,449,360 Note 1 $ 61,893 $ 108,165 $ (46,272) $ 61,893 $ 108,165 $ (46,272) $ 61,893 $ 108,165 $ (46,272) $ 48,532 $ 38,854 $ 9,678 13,361 69,311 (55,950) $ 61,893 $ 108,165 $ (46,272) Ending General Fund Balance 10.17% (Policy amount needed = 5% to 8 %) General Fund Balance - City Council Amount Reserved 1.00% (Policy amount needed = 1 %) General Fund Balance -total Ending Fund Balance 11.17% Contingency Fund Balance as a percent of General Fund Estimated Revenues (Policy amount needed = 2 %) Notes: 1. these revenues are collected to provide City services through all General Fund departments, ncluding Fund Equity Transactions. City Manager I Port Townsend Citizens 1 City Council Citzen Boards and Commissions City Manager Administrative Assistant City Clerk I I I City Attorney Public Works 1 I I Fire Finance 1+1 Building & Community Development Police I I I Library Parks & Recreation Department I I I Public Utilities -19- City Manager The City Manager is the Chief Executive and Administrative Officer, and as such, is responsible for carrying out the policies of the Council. The City Manager's department includes the City Manager and a confidential receptionist. This department provides over -all administration of the city's affairs. This includes enacting the policies and Revenues By Program Executive - General Fund Support Expenditures By Program Administrative Services Total Expenditures Expenditures by Object Personnel Operating Expenditures Capital Outlay Total Expenditures officially representing the city for the public and other governmental entities. Mission Statement: The administration's mission is to equitably carry out the legislative goals, policies, and programs of the City of Port Townsend within an atmosphere of mutual trust and respect. Budget Budget Year Year Increase 2006 2005 <Decrease> $ 208,839 $197,041 $ 11,798 $ 208,839 $197,041 $ 11,798 $ 208,839 $197,041 $ 11,798 $191,747 $176,442 $ 15,305 15,342 17,099 (1,757) 1,750 3,500 (1,750) $ 208,839 $197,041 $ 11,798 -20- City Attorney City Manager City Attorney Contract Prosecuting Atto r n ey Legal Assistant -21 - City Attorney Functions Provides legal advice /representation for all City Departments, officials, and employees, including civil litigation; City ordinance violation; drafting and reviewing ordinances, resolutions, agreements, contracts, and other City - related real estate and legal documents. Department Mission, Goals and Objectives: The City Attorney's Office provides legal services in a fair, efficient and effective manner. We provide legal advice, opinions and representation to the City Manager, City Council, and staff on a broad range of matters: • General civil litigation • Law enforcement/prosecution • Labor law, employment, personnel issues • Land use /environmental issues • Risk management • Utility and water law • Contract drafting and negotiation Real estate transactions Risk Management Priority and Litigation Response. The City Attorney's Office prioritizes aggressive and prompt response to lawsuits, and focuses on early pre - litigation involvement and intervention, thereby minimizing the City's litigation exposure and limiting our dependence on outside legal counsel. Good risk management, active legal consultation with City Departments and the City Council, open channels of communication with citizens, and early legal intervention reduce the risk of litigation and limit our taxpayers' exposure to the financial liabilities associated with lawsuits against the City. Year 2006 Goals • Continue providing legal perspective and assistance to City Council, all City Departments, City Boards and Commissions • Draft and /or review all City ordinances, resolutions • Draft and /or review all City agreements, contracts, leases, and real estate transactions • Review pending legislation of State Legislature and forward opinion /comments • Review and present policy alternatives and proposed solutions to any identified issues, and recommend ordinance amendments, as necessary, in the following areas: (1) Shoreline Management Act (SMA) amendments to comply with State Department of Ecology (DOE) mandates; (2) State Environmental Policy Act (SEPA); (3) Right -of -way /street use agreements, including vegetation management and telecommunication issues; (4) Temporary special event ordinance and procedures; (5) Permitting and approvals under City regulatory framework, to ensure provisions in various regulations (land use, SMA, critical areas) are clear and consistent; (6) Historic preservation and demolition regulations; (7) Essential public facilities regulations; (8) Personnel policies, and contract and code provisions relating to personnel; (9) Protection of City's domestic water resource; (10) Surplus property issues. -22- City Attorney Performance Measures City Attorney functions do not readily lend themselves to quantitative performance measures. Specific numbers of ordinances, lawsuits, hearings, legal opinions, contracts or other indicators do not measure time spent on or Revenues By Program Legal Services - General Fund Support Expenditures By Program Legal Services Total Expenditures Expenditures by Object Personnel Operating Expenditures Capital Outlay Total Expenditures Note 1 the complexity of a matter Budget Actual Year Year Increase 2006 2005 <Decrease> $ 303,658 $ 204,584 $ 99,074 $ 303,658 $ 204,584 $ 99,074 Note 1 $ 303,658 $ 204,584 $ 99,074 $164,044 $153,527 138,114 49,557 1,500 1,500 $ 303,658 $ 204,584 $ 10,517 88,557 $ 99,074 Starting in 2006, the costs for Municipal Court estimated to be $94,261 through an nterlocal contract with Jefferson County are accounted for in the City Attorney's budget - enter. -23 - City Clerk Function The office of the City Clerk serves as custodian of the city's legislative history Activities include maintenance of council minutes and other permanent city records, production of agendas and minutes for council and committee meetings, publishing required legal notices and all meeting notices required by the Open Public Meetings Act. Public information requests are processed and monitored to assure compliance with the state public records disclosure act. The city's web site was designed and established and is maintained by the clerk's office. The clerk also assists the City Manager in risk management and personnel issues. -24- City Clerk Mission Statement The mission of the City Clerk's office is to create, maintain, preserve and provide access to the city's legislative and administrative record. Accomplishments 2005 Provided agendas, packets, and minutes for all council meetings and committee meetings. Assisted in facilitating move to new quarters. Completed draft of new City Personnel Policies Manual. Maintained and expanded City website. Coordinated all appointments to advisory boards and commissions. Established City Clerk as Public Records Officer to comply with changes to state legislation. Goals and Objectives 2006 Develop guide for city -wide records management; train department personnel; inventory city records and begin management system consistent with state retention schedule. Expand use of electronic records management system. Change website to content management system; revise to make accessible and more user - friendly to the public. Establish public station for access to electronic records. Archive remaining historic records. Complete design of records storage spaces on and off site. Performance Measures Indicator 2003 2004 2005 2006 Clerk 1 1 1 est Meetings 1 1 1 1 staffed 120 85 116 125 Civil 2 2 2 2 Service 3 5 1 3 Testing Agenda 176 228 212 212 Bills Council 1250 2400 2286 2200 Corres . Staffing FTE Position 2003 2004 2005 2006 Clerk 1 1 1 1 Deputy 1 1 1 1 Intern 0 0 0 Total 2 2 2 2 -25- City Clerk Revenues By Program General Fund support Archive Fees Grants Total Revenues Expenditures By Program City Clerk Services Total Expenditures Expenditures by Object Personnel Operting Expenditures Capital Outlay Total Expenditures Percent of coverage of expenditures by revenues Budget Budget Year Year Increase 2006 2005 <Decrease> $ 208,657 $ 223,210 $ (14,553) 7,500 6,000 1,500 $ 216,157 $ 229,210 $ (13,053) $ 216,157 $ 229,210 $ (13,053) $ 216,157 $ 229,210 $ (13,053) $152,062 $144,888 $ 7,174 61,695 55,922 5,773 2,400 28,400 (26,000) $ 216,157 $ 229,210 $ (13,053) 3.47% 2.62% 0.85% -26- PEG Access TV Studio Mission Statement The mission of the Public, Educational and Governmental (PEG) Access Studio is community through communication. Summary The PEG Access Studio fund supports the operation of PTTV Channels 47 (public) and 48 (government and educational) for non - commercial public, educational and governmental programming. Studio space is provided by Port Townsend School District No. 50. The studio is currently staffed by a station manager, a contractual employee. Major capital equipment has been purchased or leased which will serve the basic needs of users for the next few years. The PEG Access Coordinating Committee provides policy recommendations regarding the studio. PEG funding also provides for televising of City Council and other government meetings and programs not produced in the studio. Accomplishments Increased PT High School sports coverage. Reviewed feasibility of public arm of the channel established as a non - profit. Established new fee schedule. Goals and Objectives Continue complying with Council directives regarding examination of: (3) responsibilities of stakeholders and station personnel and partners of the station; (4) improving and clarifying the 2001 interlocal agreement; (5) allocation of resources among public, educational and governmental programming (6) methods for providing accountability for the allocation of resources Program Indicators Indicator 2002 2003 2004 2005 Public 40 31 20 28 Members Indiv/Famil Public 22 12 14 16 Members Or Ed /Gov. 1 1 0 Orgs -27- PEG Access TV Studio Revenues General Fund support Utility Tax- TV Cable Franchise Fee TV Public Access Fee Program Fees Total Revenue Expenditures Operating Expenditures Capital Outlay Personnel Total Expenditures Program Revenues in Excess of Expenditures Percent coverage of expenditures by revenues Budget Budget Year Year Increase 2006 2005 <Decrease> 51,015 54,000 (2,985) 10,925 11,500 (575) 7,500 10,200 (2,700) $ 69,440 $ 75,700 $ (6,260) $ 57,914 $ 57,767 $ 147 10,925 11,500 (575) - 6,433 (6,433) $ 68,839 $ 75,700 $ (6,861) $ 601 $ - $ 601 100.0% 100.0% 0.0% Department of Development Services I City Manager Long Range Planning I Director Development Services Director Administration and Land Use Public Building Official Customer Services Permitting Rights -of -Way Building Permitting Counter I I Permitting Administrative Land Use Public Works Building Inspector/ Assistant(s) Specialist I Development Review Plans Examiner I Specialist I Permit Center Land Use Public Works Building Inspector/ Coordinator Specialist II Development Review L Plans Examiner II Specialist II Permit Technician -29- Department of Development Services Function Descriptions: DSD Director: Manages the department, sets goals and priorities for land use permitting, public rights -of -way permitting, and building permitting divisions. Oversees work product of these divisions. Manages the permit center, which is a one -stop counter where the public may conduct all their business and receive information regarding development projects. Building Permitting Division: Intakes and process building permit applications. Assists the public with understanding applicable codes and regulations. Coordinates the issuance of building permits with other city permits and licenses. Enforces the City's municipal code in regards to building, land use, shoreline codes, and nuisance issues. Land Use Permitting Division: Intakes and process land use, shoreline, and design review applications. Coordinates the issuance of these permits with other city permits and licenses. Responsible for code updates and amendments including state mandated and council directed code amendments. Coordinates with county staff regarding issues that affects both jurisdictions. Public Rights -of -Way Permitting Division: Intakes and process building permit applications related to city rights -of -way and utilities. Assists the public with understanding applicable codes and regulations. Coordinates the issuance of building permits with other city permits and licenses. Administration: Supports the director and all DSD staff with their work functions. -30- Department of Development Services Mission Statement: • Increase the level of service to To facilitate the effective translation of the community visions, as outlined in the Comprehensive Plan, into final development products that ensure a safe, healthy and robust community environment. customers through proactive programs of design and construction assistance. • Improve the quality of review and inspection to improve safety. • Increase public safety and community livability through code compliant construction and development. Value Statements: Objectives: • Provide service that is responsive to the community and reflects the concepts of fair governance. • Enhance the community character through the effective application of development regulations. • Support the implementation of the Comprehensive Plan through the use of facilitative processes that expedite permitting and are economically sensitive. • Prioritize functions to be in line with the service levels available and expectations to ensure optimal cost recovery. • Using an interdisciplinary approach that is facilitative, the department seeks to be a leader in innovative local government. • Help to make Port Townsend a safer more attractive community. • Strategic Goals & Objectives for 2006 Goals • Enhance the delivery of services by streamlining processes. • Create a facilitative environment for projects in review, permitting and inspection. • Adoption of the Shoreline Master Program (SMP). • Establish a PTMC review team to revise and scope provisions, eliminating redundancies and conflicting provisions. • Evolve the pre - application and development review process to the next level of service and assistance. • Enhance community outreach and work to develop a resource center for citizens. • Expand the level and quality of technology to improve service levels and expedite processing. • Develop and implement performance measurement standards to relate workload to resources in a framework consistent with goals and visions. • Work to assist Public Works in updating both the transportation and storm water plans, so as to improve the quality of development and service to the public. -31- Department of Development Services Revenues By Proaram General Fund support Permits Zoning Fees Planning Services Misc Revenues Intergovernmental Total Revenues Expenditures By Program Building & Planning Services Special Projects Total Expenditures Expenditures by Obiect Personnel Operating Expenditures Capital Outlay Total Expenditures Percent coverage of expenditures by revenues Budget Budget Year Year Increase 2006 2005 <Decrease> $ 85,909 582,200 22,400 13,204 4,500 50,500 $ 758,713 $ 21,601 $ 64,308 577,200 5,000 22,400 - 13,204 - 1,000 3,500 108,000 (57,500) $ 743,405 $ 15,308 $ 646,010 $ 483,628 $ 162,382 112,703 259,777 (147,074) $ 758,713 $ 743,405 $ 15,308 $ 636,200 $ 557,260 $ 78,940 120,013 183,645 (63,632) 2,500 2,500 - $ 758,713 $ 743,405 $ 15,308 88.68% 97.09% -8.42% -32- Finance Department City Manager I Finance Director I Deputy Information Technology Finance Director I I Administrator Customer Accounting & Services Treasury Utility Billing Accounting and B &O Taxes Assistant Clerk Accounts Payable Utility Billing Payroll/ and B &O Taxes Benefits Clerk Administrator Grants & Contract Compliance Specialist -33 - Finance Department The Finance Department provides a variety of financial services for the City, which includes: • Cashiering services; • Cash and investment portfolio management; • Debt management; • Budget preparation and administration; • Annual financial report preparation; • Business license issuance and monitoring; • Business and Occupation Tax reporting; • Grant revenue and expenditure reporting; • City facilities reservation system; • Parking citation receipts; • Local Improvement District assessment collections; • Utility billing for water, sewer, and storm; • Park programs — signup and receipts; • Payroll and employee benefits; • Federal and state payroll tax reporting; • Accounts payable and audit of vendor claims; • Project management reporting; • Computer systems technology; and • Monthly and annual financial reporting of all revenues and expenditures. Departmental Mission: The Finance mission is to manage and optimize the city's finances and provide professional, knowledgeable and courteous customer service. 2005 Accomplishments • Successfully completed the annual audit by the State Auditor; • Established new accounting funds for restructured city departments; and • Assisted Public Works with Fire Hall and City Hall construction project accounting. 2006 Goals and Objectives The year 2006 will be a year for implementing the city's information technology division in the Finance Department. The city will end its interlocal contract services with Jefferson County, and bring information technology support in- house. Also, we will be monitoring and accounting for the city hall annex/remodel project and closeout of the new fire station construction project. During this year, the city will complete the final phase of the utility rate study focusing on cost of service analysis. The cost of service analysis will determine if utility rates are applied equitably to all class of utility customers. Similarly, the city will study of the rental rates charged to various city departments for use of city heavy equipment and computer systems by the Equipment Rental Revolving Fund. Goal: Centralize city computer information technology support function in the city. • Hire information technology administrator; • Reconfigure city computer network communication systems topography to improve network system efficiency; • Identify and inventory all computer information systems of city; • Identify all computer applications software in city, and ensure network systems are properly functioning; • Identify other possible network applications available to city departments; • Provide city web page support. Goal: Monitor project accounting for the City Hall Annex and New Fire Station. -34- Finance Department • Monitor and account for City Hall Project; • Monitor and accounting for New Fire Station Project; • Monitor eligible costs for grant accounting for new Fire Station Project Goal: Continue to explore options to enhance information on the city web page. • Budget document availability; Revenues By Program B &O tax collections Business & Other Licenses Interfund Services Investment income Total Revenues Expenditures By Program City Financial Services Total Expenditures Expenditures by Object Personnel Operating Expenditures Capital Outlay Total Expenditures Percent coverage of expenditures by revenues • Utility customer service information; and • Utility payments via credit cards, ACH automatic debit, and Internet payments. Goal: Continue to improve financial reporting of the city's revenues, expenditures, and financial condition. • Strive for excellence in both budgeting and financial reporting. Budget Budget Year Year Increase 2006 2005 <Decrease> $ 500,000 $ 365,000 $ 135,000 46,000 43,000 3,000 35,176 - 35,176 $ 581,176 $ 408,000 $ 173,176 $ 293,209 $ 208,611 $ 84,598 $ 293,209 $ 208,611 $ 84,598 $ 233,041 $152,402 $ 80,639 57,418 53,459 3,959 2,750 2,750 - $ 293,209 $ 208,611 $ 84,598 198.21% 195.58% 2.63% -35 - Police Department City Manager Police Chief Administration Detective Supervisor School Resource Officer Police Clerks Patrol Sergeant Patrol Sergeant Squad A Squad B Patrol Officers I I I Patrol Officers Police Reserve Citizen Officers I H Volunteers Police Cadets -36- Police Department MISSION STATEMENT The Police Department's mission is to build a partnership with the community by providing accountable, effective, and professional police services based upon mutual trust and respect. MAJOR PROGRAM SERVICES The Department is currently organized into three divisions: 1) Administration & Support Services 2) Patrol and 3) Investigations. ADMINISTRATION Consists of the Chief of Police who provides the overall management and direction, planning, budgeting, scheduling, inspections, and training for the Department. SUPPORT SERVICES Consists of a Police Administrative Supervisor/Evidence Technician and two Police Clerks. Support Services handles telephone and personal requests for service from the public; processes and maintains all reports generated by Police Department Officers and staff, performs data entry in department database and regional /national law enforcement telecommunications systems; conducts background checks on arrested persons, processes all citations, and prepares all report packages for dissemination; produces mandated State and Federal statistical reports. The Evidence Technician is responsible for the records management, maintenance, and security of the Police Department's evidence /property room. (PTPD contracts with Jefferson County for Jail and Dispatch services.) PATROL Currently consists of two uniformed sergeants and nine uniformed officers. The Patrol Division is the `backbone' of the police operation. This program provides 24- hour -a -day, seven - days -a -week law enforcement coverage. The officers perform all facets of law enforcement, including responding to emergency situations and service calls. Other primary responsibilities are ensuring safety and protection of persons and property through proactive and directed patrol, conducting criminal investigations, collecting evidence, recovering lost or stolen property, and apprehending violators. Patrol also facilitates the safe, expeditious movement of vehicle, bicycle, and pedestrian traffic, and renders services of problem solving and community oriented policing to promote the peace and enhance the quality of life for residents and visitors. Included in the Patrol Division is the School Resource Officer (SRO). The SRO provides a direct law enforcement and community- policing function within the Port Townsend Schools. The Citizen Volunteer Program is coordinated and overseen by a Retired California Police Officer. INVESTIGATIONS The Investigations Division, (currently consisting of one officer), conducts professional and comprehensive follow -up investigations of reported major crimes and manages self - initiated investigations, criminal intelligence gathering, and crime trend analysis. The Investigations Division enhances contact with victims of major crimes and maintains an effective relationship with the Prosecutor, Courts, and other local, state, and national law enforcement agencies. 2006 GOALS AND OBJECTIVES • Enhance training for every officer in the area of Financial Crimes, Identity Theft, Computer and other Hi -Tech Crimes. • Implement a plan to increase cooperation and working relationships with other agencies and entities to combat the damaging effects of methamphetamine abuse. -37- Police Department • Hire two police officers to bring the police department to the authorized strength of 16 commissioned police officers. Police Department Revenues By Program General Fund support Court Appointed Inmate fees Fines Grants Law enforcement services Retail Sales Taxes - Criminal Justice Criminal Justice Taxes Liquor Excise Taxes Motor Vehicle Taxes Miscellaneous Total Revenues Expenditures By Program Administration Operations Training Total Expenditures Expenditures by Object Personnel Supplies Capital Outlay Total Expenditures Percent of coverage of expenditures by revenues Note 1 Budget Budget Year Year Increase 2006 2005 <Decrease> $1,688,144 $1,511,019 $ 177,125 24,000 - 24,000 72,300 76,700 (4,400) 6,901 47,091 (40,190) 18,000 - 18,000 115,600 101,077 14,523 9,916 11,364 (1,448) 35,750 - 35,750 1,500 - 1,500 3,400 400 3,000 $1,975,511 $1,747,651 $ 227,860 $ 561,004 $ 595,288 $ (34,284) 1,399,507 1,134,363 265,144 Note 1 15,000 18,000 (3,000) $1,975,511 $1,747,651 $ 227,860 $1,240,893 $1,317,730 $ (76,837) 724,620 419,923 304,697 9,998 9,998 - $1,975,511 $1,747,651 $ 227,860 14.55% 13.54% 1.01% n 2006, interlocal contracts with Jefferson County for services were relocated in the Police Department from the city contracts cost center for monitoring and control: 4nimal control services $ 64,100 Jail services $151,305 Dispatch services $191,500 -39- Facilities Maintenance Department Mission Statement: The mission of the Facilities Maintenance Division is to operate and maintain the city owned buildings and public restrooms. This work is accomplished primarily through a janitorial contract that is administered by the Water Department Operations Manager and supervised by the Fleet/Facilities Crew Chief. The Crew Chief also performs or coordinates minor building repairs and modifications. In 2006, we will continue efforts to expand deferred maintenance of existing facilities to include City Hall, Pope Marine Building, and Parks facilities. We will also be renewing the janitorial contract for City -owned facilities. Budget Budget Year Year Increase 2006 2005 <Decrease> Revenues By Proaram General Fund support $122,364 $ 335,313 $ (212,949) Interfund maintenance charges- Lodging Tax Fund 10,000 6,000 4,000 Custodial Services 6,500 3,686 2,814 Total Revenues $138,864 $344,999 $ (206,135) Expenditures By Program Percent of coverage of expenditures by revenues Public Restrooms $ 6,000 $ 6,000 $ - City Hall and Facilities 132,864 338,999 (206,135) Total Expenditures $138,864 $344,999 $ (206,135) Expenditures by Obiect Personnel $ 71,812 $ 19,855 $ 51,957 Operating Expenditures 66,052 320,644 (254,592) Capital Outlay 1,000 4,500 (3,500) Total Expenditures $138,864 $344,999 $ (206,135) Percent of coverage of expenditures by revenues 11.88% 2.81% 9.07% Non - Departmental The General Fund cost center "Non - Departmental" is where costs, which are not directly assigned to an existing General Fund Revenues By Program General Fund support Grants - Interagency for Outdoor Recreation Total Revenues Expenditures By Proaram department, are summarized. Presently, most of these costs are for contracted services to Jefferson County. Budget Budget Year Year Increase 2006 2005 <Decrease> $ 108,000 $ 573,509 $ (465,509) $ 108,000 $ 573,509 $ (465,509) Intergovernmental Services $ 7,000 $ 491,161 $ (484,161) Note 1 Reserve (medical benefits, garbage utility retiree) 101,000 82,348 18,652 Total Expenditures $ 108,000 $ 573,509 $ (465,509) Expenditures by Object Intergovernmental Services - Jefferson County contract $ - $ 491,161 $ (491,161) Note 1 Operating Expenditures 108,000 82,348 25,652 Total Expenditures $ 108,000 $ 573,509 $ (465,509) Percent of coverage of expenditures by revenues 0.00% 0.00% 0.00% Note 1 n 2005, these services included the cost of contract services provided by Jefferson County: District :,ourt, Dispatch, Alcohol and Drug Abuse, Animal Control, and Computer Network Support. Starting n 2006, the interlocal contract costs were reassigned to various city departments to monitor and administer as part of their department budgets. -41- Fund Equity and Transactions This budget summary was developed to assist the City Council with monitoring the General Fund beginning fund balance amounts. Also, this budget summary enables the Council to provide policy guidance for budgeting a Council General Fund reserve amount in accordance with City Council policy. This cost center is where all General Fund transfers out to other city funds shall be recorded. This budgetary Ending General Fund Balance City Council Reserved Fund Balance - (1 %) Unreserved Fund Balance Total Ending Fund Balance Other Financing Uses Interfund Subsidies Interfund Subsidies Interfund Subsidies Interfund Subsidies Interfund Subsidies Interfund Subsidies provision allows the City Council and citizens to more clearly see when budgetary transfers are to occur, and where those transfers went. Finally, this summary provides the totals for the General Fund, ending fund balance as projected in the budget development. Transfer out to Other Funds Transfer out to W &K Rent/Bond 2005 Transfers -Out to Street Fund Transfers -Out to Emergency Services Fund Transfers -Out to Library Fund Transfers -Out to Community Services Fund Total Other Financing Uses Total Fund Equity and Other Financing Uses Notes: 1 Budget Budget Year Year 2006 2005 $ 69,521 $ 68,129 707,124 413,221 $ 776,645 $ 481,350 $ - $1,987,232 171,000 - 200,000 418,427 780,000 - 675,168 - 627,287 $2,453,455 $ 2,405,659 Increase <Decrease> $ 1,392 see Note 1 293,903 $ 295,295 $ (1,987,232) 171,000 (218,427) 780,000 675,168 627,287 $ 47,796 $ 3,230,100 $ 2,887,009 $ 343,091 Beginning in year 2000, the City Council established a financial policy requiring a reserve in the General Fund equal to 1 % of General Fund revenues. The reserve may only be spent by Council authorization through a supplemental budget. -42- Special Revenue Funds Special revenue fund types are used to account for the proceeds of specific revenue sources (other than expendable trusts or for major capital projects) that are legally restricted to expenditure for specified purposes. The city presently has eleven special revenue funds: • Drug Enforcement and Education Fund • Contingency Fund • Fire Equipment Joint Maintenance Fund • Community Development Block Grant Fund • Lodging Tax Fund • System Development Charge Fund • Library Fund • Fire and EMS Services Fund • Public Works Administration and Engineering Fund • Community Services Fund • Street Fund Drug Enforcement & Education Fund The Drug Enforcement and Education Fund receives all monies and proceeds of the sale of property seized during drug investigations and forfeitures pursuant to RCW 69.50.050. The monies received shall be used solely for the purposes of drug enforcement, drug awareness education, and the purchase, lease and maintenance of equipment and other items necessary for drug enforcement. There is no staff assigned to operate this fund. It is used primarily to account for earmarked monies. Contingency Fund Beginning in 2000, the City Council authorized a contingency fund to accumulate resources from the general property tax levy for future unforeseen needs and emergencies. The policy adopted by the City Council seeks to set aside up to 2% of General Fund revenues as a contingency reserve. This reserve may only be used by an appropriation of the City Council. State law (RCW 35A.33.145) authorizes this fund and limits the reserve level to a maximum of $ 0.375 per thousand dollars of assessed valuation of property within the city. There are no staff assigned to operate this fund. It is used primarily to account for earmarked monies. Community Development Block Grant Fund This fund accounts for the federal community development block grant (CDBG) program that provided federal aid to stimulate local development. The CDBG program provided housing and economic development grants. The federal program has long since closed, but loan repayments are deposited into this fund and become program income to the program in accordance with federal regulations. This process, in effect, recycles the original federal grant on a continual basis enabling other qualified applicants to have access to the federal program. Lodging Tax Fund A lodging tax is imposed upon recommendation of the city's Lodging Tax Advisory Committee, in accordance with Port Townsend Municipal Code Title 3, Chapter 3.20. All such taxes collected in this fund are for the purpose of paying all or part of the cost of tourism promotion, acquisition of tourism, related facilities, operation and maintenance of tourism, and for such other purposes as authorized in RCW Chapter 67.28. Lodging tax funds may be used to pay for any engineering, planning, financial, legal and professional services incident to the development and operation of tourism - related facilities, to secure the payment of all or any portion of general -43 - Special Revenue Funds obligation bonds or revenue bonds issued for such purpose as specified. The sole source of revenue is the lodging tax This tax is derived by taking 2 percent of the state's 6.5 percent sales tax and rebating it back to the community for local programs to promote and accommodate tourism. On October 5, 1998, the City Council passed Ordinance 2663 authorizing an imposition of an additional "special" 2% excise tax. This special 2% excise tax was effective starting February 1, 1999. This results in a combined lodging tax of 4 %. Fire Equipment Joint Maintenance Fund On August 8, 2000, the city entered into an interlocal agreement with various Jefferson County Fire Districts to operate and maintain a self - contained breathing air filling compressor and appurtenances. This agreement provides for the collection of fees from all parties to support the operating costs of this unit in a segregated fund. System Development Charge Fund The System Development Charge (SDC) Fund was created as authorized by Ordinance 2666 in November 1998. Pursuant to Chapter 13.03 PTMC, the City has determined that it is reasonable and in the public interest to collect water and wastewater system development charges for the purpose of recovering a proportionate share of the actual and projected costs of water and wastewater facilities from those properties which, as a part of their development and use, create the need for those facilities. The SDC Fund was created to account for system development charges assessed by the city's water and wastewater utilities to property developers. Also, this fund is used to account for deferrals of system development charges for selected low - income housing projects. Those projects selected for deferral of SDC's shall be accounted for in a special account as authorized by the City Council. Authorized deferrals of SDC charges shall be paid by a contribution from the city's General Fund with a transfer of monies to the System Development Low - Income Deferral Account. As cities nationwide face increased costs for expanding and upgrading water and wastewater (sewer) facilities, they are looking for ways to charge the costs equitably among the utility customers who are receiving the benefits. Port Townsend is one of many cities challenged with funding the most costly capital projects in its history. State and federal regulations are forcing the city to construct expensive improvements to existing water and wastewater systems. When new facilities are constructed, excess capacity for future growth must be included to avoid frequent costly future expansions. Historically, as new growth occurs, the existing ratepayers have subsidized these expenses. Now, as in many other communities, the City of Port Townsend has decided to more fairly charge those who are benefiting directly, by establishing System Development Charges, or SDCs. With SCDs (also known as Impact Fees for certain services), those responsible for growth pay a more realistic proportion of the costs associated with growth. State law requires that SDCs collected be placed in a dedicated fund for use only on construction projects that are being oversized to accommodate growth. The law further states that all money be spent within five years. If it is not spent on appropriate projects within this time frame, the city is required to refund the money collected. Collections can Special Revenue Funds also be used to pay for extra capacity in already constructed facilities. In essence, they help pay the debt service for those projects. In Port Townsend's case, water SDC revenue is being spent on pipeline improvements, including property purchases, which have been mandated by the State Department of Health. Wastewater SDC revenue will pay for the final stages of the wastewater treatment plant project. These fees will pay only for the excess capacity portion, offsetting debt service payments for these projects. State law authorizes establishment of SDCs for water, wastewater and storm drainage. Impact Fees are also allowed for streets, parks, fire and schools. The citizen Impact Fee Advisory Committee originally recommended adoption of SDC /Impact Fees for all of these services except fire. Currently, only the water and wastewater recommendations have been adopted. Library Fund Starting in 2005, a new accounting fund was created for the operation of the city library with enabling city Ordinance No. 2889. In prior years the library was part of the city's general fund. Detail budget information follows. Fire and EMS Services Fund Starting in 2005, a new accounting fund was created for the operation of the city fire department with enabling city Ordinance No. 2889. In prior years the fire department was part of the city's general fund. Detail budget information follows. Public Works and Engineering Fund Starting in 2005, a new accounting fund was created for the operation of the city public works administration and engineering services with enabling city Ordinance No. 2889. In prior years the public works administration and engineering services was part of the city's general fund. Detail budget information follows. Community Services Fund Starting in 2005, a new accounting fund was created for the operation of city community services (parks maintenance, pool, recreation, and domestic violence programs) with enabling city Ordinance No. 2889. In prior years these services were included in various city general fund departments. This new fund includes funding for other city services contract providers. They include Domestic Violence for $30,000, Boiler Room for $4,000, UGN for $4,555, Main Street for $30,000, and Arts Commission for $11,050. Detail budget information follows. Street Fund The street fund is responsible for the administration and maintenance of the city's transportation network, which includes approximately 74 miles of public roadways together with roadside improvements, sidewalks, bicycle facilities, signalization and illumination systems. The duties associated with this responsibility include: • Street sweeping • Roadside vegetation management and mowing • Landscape maintenance • Pavement and shoulder repair • Pavement markings • Snow and ice control • Traffic signal and illumination system maintenance • Signage • Traffic counts -45- Special Revenue Funds • Transportation planning • Street tree maintenance The street fund receives revenues from state distributions of motor vehicle fuel taxes for two programs: city streets and arterial streets. State law restricts these revenues: • City streets: to be used for any street purposes (RCW 46.68.070.110, 47.24.040 and 35.76 RCW) • Arterial streets: to be used for highways and arterial streets. For cities with populations less than 15,000, cities may use these monies for the maintenance of arterial highways and city streets (RCW 46.68.070). The city consolidated its Arterial Street Fund into the Street Fund in 2000 as allowed by RCW 46.68.070 for cities with populations less than 15,000. These state distributions are not sufficient resources to maintain city streets. The city's general fund provides subsidies in order for the street fund to operate. Detail budget information follows. Special Revenue Funds Drug Enforcement and Education Fund Revenues Investment Interest Expenditures Supplies Capital Estimated Beginning Fund Balance Increase <Decrease> in Fund Balance Estimated Ending Fund Balance Contingency Fund Revenues Property Tax Investment Interest Total Revenues Expenditures Estimated Beginning Fund Balance Increase <Decrease> in Fund Balance Estimated Ending Fund Balance Budget Budget Year Year Increase 2006 2005 <Decrease> $ 1 $ - $ 1 Budget Actual Year Year Increase 2006 2005 <Decrease> $ 64 $ 64 $ - 1 $ - 1 $ 65 $ 64 $ 1 Budget Actual Year Year Increase 2006 2005 <Decrease> $ - $ 15,388 $ (15,388) $ 3,001 $ 2,059 942 $ 3,001 $ 17,447 $ (14,446) $ 150,046 $ 134,047 $ 15,999 3,001 17,447 (14,446) $ 153,047 $ 151,494 $ 1,553 -47- Special Revenue Funds Community Development Block Grant Fund Revenues Program Income Investment Interest Income Total Revenues Expenditures Community Development Loans Total Expenditures Estimated Beginning Fund Balance Increase <Decrease> in Fund Balance Estimated Ending Fund Balance Budget Actual 25,000 Year Year Increase 2006 2005 <Decrease> $ 5,000 $ 10,687 $ (5,687) 1,214 1,706 (492) $ 6,214 $ 12,393 $ (6,179) $ 60,000 $ 25,000 $ 35,000 $ 60,000 $ 25,000 $ 35,000 $ 60,706 $ 77,850 $ (17,144) (53,786) (12,607) (41,179) $ 6,921 $ 65,243 $ (58,323) Fire Equipment Joint Maintenance Fund Revenues Intergovernmental Revenues - Fire Districts Equipment Repair Charges Investment Interest Total Revenues Expenditures Professional Services Capital Outlays Total Expenditures Estimated Beginning Fund Balance Increase <Decrease> in Fund Balance Estimated Ending Fund Balance Budget Actual Year Year Increase 2006 2005 <Decrease> 279 62 217 $ 279 $ 62 $ 217 $ 13,932 $ 9,908 $ 4,024 279 62 217 $ 14,211 $ 9,970 $ 4,241 Special Revenue Funds System Development Charge Fund Stormwater SDCs Total Revenues Expenditures $ 300,085 $ 440,540 $ (140,455) Residual Equity Transfers $ 250,000 $ 550,000 $ (300,000) Interfund Subsidies (Water) 100,000 100,000 - Interfund Subsidies (Sewer) - - - Interfund Subsidies (Storm) - - - Total Expenditures Estimated Beginning Fund Balance Increase <Decrease> in Fund Balance Estimated Ending Fund Balance $ 350,000 $ 650,000 $ (300,000) $ 269,739 $ 479,199 $ (209,460) (49,915) (209,460) 159,545 $ 219,824 $ 269,739 $ (49,915) Budget Budget Year Year Increase 2006 2005 <Decrease> Revenues Interest Income $ 5,395 $ 540 $ 4,855 Water SDCs -City 155,100 250,000 (94,900) Water SDCs- Outside city - - - Sewer SDCs 139,590 190,000 (50,410) Stormwater SDCs Total Revenues Expenditures $ 300,085 $ 440,540 $ (140,455) Residual Equity Transfers $ 250,000 $ 550,000 $ (300,000) Interfund Subsidies (Water) 100,000 100,000 - Interfund Subsidies (Sewer) - - - Interfund Subsidies (Storm) - - - Total Expenditures Estimated Beginning Fund Balance Increase <Decrease> in Fund Balance Estimated Ending Fund Balance $ 350,000 $ 650,000 $ (300,000) $ 269,739 $ 479,199 $ (209,460) (49,915) (209,460) 159,545 $ 219,824 $ 269,739 $ (49,915) Special Revenue Funds Lodging Tax Fund Revenues Hotel Motel Taxes Investment Interest Total Revenues Expenditures Professional Services -PT Chamber Professional Services -PAW Professional Services -Other Advertising Advertising -Joint Marketing Communications Miscellaneous - Special Events General Fund Overhead Charges Interfund Services & Charges - Public Restrooms Interfund Services & Charges - Fort Worden Parking Interfund Subsidies - McCurdy Pavilion debt service Interfund Subsidies - PT Marine Science Center debt Total Expenditures Estimated Beginning Fund Balance Increase <Decrease> in Fund Balance Estimated Ending Fund Balance Budget Actual 50,000 Year Year Increase 2006 2005 <Decrease> $ 325,000 $ 325,414 $ (414) 3,176 2,409 767 $ 328,176 $ 327,823 $ 354 $ 70,000 $ 141,625 $ (71,625) 50,000 - 50,000 2,500 - 2,500 104,000 112,739 (8,739) 18,000 - 8,000 - 8,000 17,000 31,280 (14,280) 15,109 8,915 6,194 10,000 7,000 3,000 - 5,000 (5,000) 22,000 22,000 - 6,000 6,000 - $ 322,609 $ 334,559 $ (29,949) $ 158,819 $ 182,922 $ (24,103) 5,567 (6,736) 12,303 $ 164,386 $ 176,186 $ (11,800) -50- Special Revenue Funds Community Services Fund Revenues By Proaram General Fund support Intergovernmental revenues Charges for services - pool Rental income Donations Total Revenues Expenditures By Proaram Other Contract Service Providers Parks Maintenance Recreation Pool Events Coordination Interfund Charges Total Expenditures Expenditures by Obiect Personnel Operating Expenditures Capital Outlay Total Expenditures Actual Beginning Fund Balance Increase <Decrease> in Fund Balance Estimated Ending Fund Balance Budget Budget Year Year Increase 2006 2005 <Decrease> $ 627,287 $ 562,731 $ 64,556 2,300 2,300 - 90,000 90,000 - 25,000 15,600 9,400 $ 744,587 $ 670,631 $ 73,956 $ 85,855 $ 85,855 $ - 272,828 268,991 3,837 90,000 90,000 - 218,424 202,903 15,521 38,486 - 38,486 43,994 22,882 21,112 $ 749,587 $ 670,631 $ 78,956 $ 361,605 $ 302,455 $ 59,150 385,982 366,176 19,806 2,000 2,000 - $ 749,587 $ 670,631 $ 78,956 $ 5,000 $ - $ 5,000 (5,000) - (5,000) $ (0) $ - $ (0) -51- Fire Department -52- Fire Department Total Revenues $ 1,256,767 $ 1,479,947 $ (223,180) Expenditures By Program Fire $ 544,818 $ 577,090 $ (32,272) Emergency Medical Services (EMS) 711,949 902,857 (190,908) Total Expenditures $ 1,256,767 $ 1,479,947 $ (223,180) Expenditures by Object Personnel Budget Budget $ (146,944) Operating Expenditures Year Year Increase Intergovernmental Charges -EJFR 2006 2005 <Decrease> Revenues By Program 1,593 - 1,593 General Fund support $ 780,000 $ 771,336 $ 8,664 EMS Levy 366,323 346,809 19,514 Ambulance Services - 263,901 (263,901) Note 1 Fire Inspection Services 95,444 - 95,444 Fire District #6 - 75,000 (75,000) Fire Protection Services 15,000 15,000 - PT EMS Mill Contract - 7,901 (7,901) Miscellaneous - - Grants - - - Total Revenues $ 1,256,767 $ 1,479,947 $ (223,180) Expenditures By Program Fire $ 544,818 $ 577,090 $ (32,272) Emergency Medical Services (EMS) 711,949 902,857 (190,908) Total Expenditures $ 1,256,767 $ 1,479,947 $ (223,180) Expenditures by Object Personnel $ 951,593 $ 1,098,537 $ (146,944) Operating Expenditures 15,711 232,284 (216,573) Intergovernmental Charges -EJFR 145,966 - 145,966 Note 1 Interfund Charges 1,593 - 1,593 Interfund Charges- Equipment Rental 95,371 95,371 (0) Debt Service - Fire Station 46,533 - 46,533 Capital Outlay - 53,755 (53,755) Total Expenditures $ 1,256,767 $ 1,479,947 $ (223,180) Estimated Beginning Fund Balance 1.43 - 1.43 Increase <Decrease> in Fund Balance - 0.00 (020) Estimated Ending Fund Balance 1.43 0.00 1.43 Notes 1 'rior to 2005 the Emergency Service Fund was a department of the General Fund. In ?006, ambulance collections was contracted to East Jefferson Fire Rescue (EJFR) Ander a new inerlocal contract to transfer fire /ems operations to EJFR. -53 - Library Fund City Manager Library Director Library Support I Network Library Board of Friends of the Trustees Port Townsend Library Public Library Port Townsend Foundation Library Volunteers Youth Services I I Circulation Services Youth Services Administrative Librarian Assistant/ (1 FTE) Circulation /Co. (1 FTE) Senior Library Library Associate Associate Circulation (0.75 FTE) (0.75 FTE) Library Associate Library Assistant (0.5 FTE) 1 (0.5 FTE) Library Page/ (1 FTE) Information /Technical Services Information & Technical Services Librarian (1 FTE) Associate Librarian (0.5 FTE) Library Associate (0.75 FTE) Processing Technician (1 FTE) -54- Library Fund MISSION The Port Townsend Public Library encourages a lifelong love of reading and learning and supports the quest for knowledge, creativity, and adventure by providing free and open access to information and ideas. RESOURCES AND SERVICES Collections Access to over 60,000 items including books, magazines and newspapers, videos /dvds, audio books, music cds, microfilm, and online subscription databases that make available periodical indexes and specialized health, literary, history, business and legal resources. Interlibrary Cooperation Participate in the CLAN consortium to share an automated card catalog, circulation system and interlibrary loans with the Jefferson County Library and Quilcene and Brinnon School libraries. Share in providing courier services between the two public libraries. Borrow books from outside CLAN through the national interlibrary loan system. Partner with the University of Washington library for historic newspaper digital project. Technology Provide public access to the Internet and software including word processing and spreadsheets. Make available a four - laptop computer wireless training lab for the public and staff. Public Programs Offer a continuing series of programs for adults, teens, and children including special interest topics, workshops, story hours, concerts, well -known authors and illustrators, book discussion groups, summer reading, homework help, and curriculum support. Information Services Reference /research assistance, readers' advisory for popular materials, help with special collections including the Maritime Collection and historical newspapers on microfilm, training in the use of online databases. Operations Include collection development, book processing, cataloging, outreach and program planning, and fund raising. MAJOR ACCOMPLISHMENTS IN 2005 The Library Facilities are accessible, flexible, inviting, and functional to meet the community's needs. Secured funding for facility assessment study Implemented space rearrangement plan: Circulation desk relocated; shelving needs identified; new shelving for children's area acquired; workroom reorganized; new materials area created. Updated Technology Plan. Installed wireless network for public use. Identified and ordered online scheduling system for public access computers — PC Cop, funded by Friends The Library collections in all formats are developed and managed to meet the diverse needs of all users. Weeded adult non - fiction and young adult material; children's and adult fiction in process. Completed CLAN library computer network upgrade; work continues to resolve technical issues. The Library will strengthen its role as a community resource through development of programs and services and the creation of community and professional partnerships. Began implementation of marketing plan: logo developed, stationery and mugs ordered with logo. Conducted customer service training for staff. Presented increased number of well- attended public program for adults, teens, and children. The Library has adequate stable and predictable financial support from diverse public and private sources to ensure a sound financial future. Conducted with assistance of a development consultant strategic board recruitment to strengthen Library Foundation. Finalized Foundation board membership and planned new board orientation in January 2006. -55- Library Fund The Library cultivates and celebrates professional and support staff and volunteer leadership essential for continuing excellence in providing quality library service. Promoted Jean Tarascio to Youth Services Librarian and hired Rachel Aronowitz as Teen Specialist. Held first of a series of "retreats" to redefine youth services. Early childhood and teens were identified as priorities. Conducted staff development training with Peninsula College to strengthen staff as a team and to foster a respectful and productive work place. Reviewed staff assignments and instituted cross training procedures. Reviewed volunteer needs, drafted job descriptions, and expanded volunteer opportunities: circulation and shelving. Held volunteer leadership retreat (Foundation, Trustee Advisory Board, Friends of the Library) to clarify support groups' roles and their relationship with the library and with each other. MAJOR 2006 PRIORITIES AND INITIATIVES In 2006, the Port Townsend Public Library will be focused on the main priorities of its strategic plan: facility improvement, collection developments, and outreach through programs and services. In conjunction with the library Facilities Task Force, we will begin the process to select an architect to conduct an assessment study to determine the best options for a future major renovation of the building. Rearrangement of the non - fiction and popular materials rooms will provide for improved space for patrons, including teens, as well as computers and collections. New and improved internal and external signage will assist patrons in their use of the library and its resources. The audio book, large print, and young adult collections continue to be a special focus of collection development as public usage of these materials rises. Along with the purchase of new materials, the ongoing refinement of all collections continues and the suitability of off site storage as a viable option for housing low circulation materials will be reassessed. Work continues to strengthen existing programs and partnerships and identify new ones in response to community needs and interests. Major program initiatives include a Community Read, Summer Reading, author series, and a variety of specialized events for targeted audiences and underserved groups including seniors, teens, and infants. In addition, a program to provide service to the homebound is under development and should be ready to launch in the spring. The Library Foundation's board recruitment process will be completed with the addition of six new board members. Following the Board's internal reorganization, the Foundation will be ready to work closely with the library director and city administration to draft a development plan to support library fundraising priorities. The Friends of the Library's fund- raising efforts continue to support public programs and needs outside the library's regular operating budget. The need for more library volunteers to provide assistance with routine operations will be addressed with a more proactive recruitment process. The current staffing arrangement is under review and internal adjustments are under consideration in response to changing library priorities. Staff will be utilizing appropriate resources to gain a better understanding of the composition and needs of Port Townsend's citizens in order to develop programs and services which will match a true community profile. The year 2006 will be an exciting year for change and transition as the library works through the initiatives of its strategic plan to connect with all residents of the City of Port Townsend. -56- Library Fund Revenues By Program General Fund support Fines Total Revenues Expenditures By Program Library Services Total Expenditures Expenditures by Object Personnel Operating Expenditures Capital Outlay Total Expenditures Estimated Beginning Fund Balance Increase <Decrease> in Fund Balance Estimated Ending Fund Balance Notes: Budget Budget Year Year Increase 2006 2005 <Decrease> $ 675,168 $ 653,164 $ 22,004 5,000 5,000 - $ 680,168 $ 658,164 $ 22,004 $ 680,168 $ 658,164 $ 22,004 $ 680,168 $ 658,164 $ 22,004 $ 432,840 $ 473,250 $ (40,410) 174,778 117,364 57,414 72,550 67,550 5,000 $ 680,168 $ 658,164 $ 22,004 0 - 0 $ 0 $ - $ 0 1. Prior to 2005 the Library Fund was a department of the General Fund. -57- Public Works Administration Engineering Division see Organizational Chart City Manager Public Works Director Office Lead Street/Sewer /Storm Division see Organizational Chart Parks & Recreation Division see Organizational Chart Water & Facilities Division see Organizational Chart Public Works Administration and Engineering Mission Statement: To provide overall leadership, management, administration, and support for all the divisions of the Public Works Department. To provide safe, reliable, efficient Public Works services to the community. To provide sound technical advice to the City Manager, City Council, City staff, and the public. To ensure the effective and efficient integration of Public Works efforts into the overall operation of the City as well as appropriate County /State plans. 2006 Goals and Objectives Goal: Develop and manage plans and execute programs that aid in the informed decision making by Public Works divisions, other City Departments, City Manager, and Council. Manage utility system upgrades to ensure regulatory compliance and the safe, reliable provision of essential City services including improvements to the water distribution and wastewater collection systems, sewer trunk line improvements and continued planning and design efforts on other elements of the water and waste water systems. Ensure continued reliable, safe water supply through completion of environmental analyses and permit renewals. Provide assistance to the City Manager, Council, and citizens to examine and adopt a City Storm Water Management Plan. Improve the quality of life in Port Townsend through continual review and improvement of City parks, recreation, and swimming pool services. Increase emphasis on transportation planning and street maintenance and improvement operations. Support the activities of all Public Works elements and other City departments by providing current, accurate GIS data to fullest extent possible. Goal: Oversee the development and timely, cost - efficient administration of capital projects. Provide project management and technical support for the development, bidding, contract compliance, and project close out for municipal capital facilities projects to include City Hall restoration /Annex construction, skateboard park, and new fire station. Continue planning for the relocation of the Police Department from its current site. Initiate planning efforts for improvements to the pool and Wave Gallery facilities. Goal: Secure the means to finance capital projects necessary to a healthy infrastructure by careful management of current resources and a continuing vigilance for favorable financing. Conduct a utilities system rate analysis the lowest possible utility rates that will support the City's adopted plans for utility system capital projects. Continue search for grant funding opportunities and low interest loans in conjunction with the City's capacity to finance the loans. -59- Public Works Administration and Engineering Provide assistance in grant and loan preparation to all Public Works divisions and City departments. Goal: Create administrative systems to increase efficiencies and save tax - and ratepayers money. Implement procurement policies and methods that assure the best value at the best price while maintaining strict compliance with state and city bidding and procurement laws. Continue working towards full compliance on budget and bidding processes on an ongoing basis. Provide updates and training on the latest procurement methods, laws, and policies. Ensure the efficient and effective organization of critical information through daily emphasis on the Records Management Program. Goal: Work toward increased customer satisfaction with Public Works services. Continue to support and improve the Customer Request Program. •1 Public Works Administration and Engineering Revenues By Program Interfund Services General Fund support Total Revenues Expenditures By Program Administration Engineering Services Total Expenditures Expenditures by Obiect Personnel Operating Expenditures Capital Outlay Total Expenditures Actual Beginning Fund Balance Increase <Decrease> in Fund Balance Estimated Ending Fund Balance Budget Budget Year Year Increase 2006 2005 <Decrease> $ 878,777 $ 874,169 $ 4,608 $ 878,777 $ 874,169 $ 4,608 $ 302,427 $ 279,159 $ 23,268 576,350 595,010 (18,660) $ 878,777 $ 874,169 $ 4,608 $ 683,317 $ 712,651 $ (29,334) 185,460 151,518 33,942 10,000 10,000 - $ 878,777 $ 874,169 $ 4,608 -61- Street Fund Street Fund (In conjunction with Wastewater /Storm) Function: The Street Fund provides the resources for the Street Operating Division of Public Works. The Street Division is responsible for the maintenance of streets, gravel roads, alleys, sidewalks and shoulders within the City of Port Townsend. This includes street sweeping, vegetation management, tree removal, grading, pavement and shoulder repair, snow and ice removal, pavement markings and signage. The Arterial Street Fund is incorporated within the Street Fund for the construction, improvement, chip sealing, overlaying with asphalt, seal coating and repair of arterial highway and city streets. Goals and Objectives Goal: Evaluate, identify and prioritize failed road surfaces for reconstruction or overlay. Develop a pavement management program using the City's GIS system to identify and map locations of failing roads to create a priority list for repairs. Goal: Continue to work on overlaying the streets and the surfacing of gravel roads throughout the City of Port Townsend. Identify streets that need to be resurfaced with the money that is appropriated for making these improvements. Reduce the number of miles of gravel roads that is needed to be maintained by resurfacing them using either chip sealing or asphalt. This will reduce our maintenance cost and the dust concerns that are raised by the residents on these types of roads. Goal: Continue to work on replacing problem sidewalks. Identify and replace critical sidewalks with the money appropriated for doing this through the CIP program. Goal: Implement the Streets Capital Improvement Program. 2005 Accomplishments Continued to install hot tape bicycle symbols and arrows on streets that were previously painted to reduce the labor hours to maintain the paint. Continued making spot repairs to the downtown sidewalks to prevent tripping hazards. Spent approximately 40 hours doing this work. Chip sealed 0.93 miles of gravel streets utilizing the Jefferson County Road Department to do the work with the City forces for the preparation of the streets done. Rebuilt 12th Street between SR20 and Haines Place behind Henery Hardware. This work included stormwater, curbs, grinding and regrading of this section and then it was repaved with 2.5 inches of hot mix asphalt. Did dig -outs on Jackman Street. Two on the North side and two on the South side of 49th Street to repair failing sections of the roadway. Did dig -outs on Walker Street between Lawrence and Garfield. There was two sections that had failed in the roadway because of the poor base material and heavy transit bus activity on the roadway. Worked on improving pathways along Landes Street between 12th St. and 19th St. Also along 12th St. between Holcomb and Landes by grading of the shoulders and adding black rock materials to provide a good walkway. -62- Street Fund Street Division 2003 2004 2005 2006 Est. as of 10/31/04 Citizen concern /requests received 471 192 208 150 Painting of crosswalks, curbs, and parking stalls Time Spent, Hrs. 500 500 500 500 Miles of gravel road maintained twice a 8 8 8.0 7.0 year Miles of roadway maintained and non - maintained in the City. 85 89.1 93.6 95 Miles of road re- striped -one time per 40 40 40 40 year Street Shoulders - Miles pulled 2 1 1.1 2 Right -of -Way chip sealed or Paved 1.5 0.86 0 1.1 Depending on (Miles) Funding -63 - Street Fund Revenues State Grants Federal Grants (Indirect) Motor Vehicle Fuel Tax - City Streets Motor Vehicle Fuel Tax - Arterial Streets Investment Interest Street Payback Collection Miscellaneous Income Operating Transfers- In Total Revenues Expenditures by program Operations Capital Improvement Projects Total Expenditures Expenditures by object Repairs & Maintenance Utility Services Supplies Services & Charges Personnel Capital Outlay Interfund Services Total Expenditures Actual Beginning Fund Balance Increase <Decrease> in Fund Balance Estimated Ending Fund Balance Budget Budget Year Year Increase 2006 2005 <Decrease> 207,169 122,307 84,862 - 57,185 (57,185) 200,000 418,427 (218,427) $ 407,169 $ 597,919 $ (190,750) $ 420,828 $ 569,383 $ (148,555) 70,000 - 70,000 $ 490,828 $ 569,383 $ (78,555) $ 490,828 $ 569,383 $ (78,555) $ 125,166 $ 145,524 $ (20,358) (83,659) 28,536 (112,195) $ 41,507 $ 145,524 $ (132,553) 65,800 65,800 - 41,500 45,400 (3,900) 57,402 22,514 34,888 138,279 132,645 5,634 70,000 180,000 (110,000) 117,847 123,024 (5,177) $ 490,828 $ 569,383 $ (78,555) $ 125,166 $ 145,524 $ (20,358) (83,659) 28,536 (112,195) $ 41,507 $ 145,524 $ (132,553) General Government Debt Service The city issues long term debt instruments to finance large capital projects. These are typically for items that have long useful lives for which this financing method will reduce the annual debt service burden on its citizens. Since local governments are permitted to issue tax - exempt bonds, this financing option helps reduce the cost of borrowing. State law limits general obligation bond issues. These bonds may be issued in two different methods: voted bonds and non -voted bonds. Washington State law limits the voted bond indebtedness to two and one -half percent (2.5 %), including non -voted debt, of the city's current assessed valuation (A.V.). Cities are also authorized to issue general obligation bonds for an additional two and one -half percent (2.5 %) of the city's current assessed valuation for parks and open spaces and utilities. Both of these bond issues must be voted and approved by a 60 percent majority vote of the registered voters. Bonds of this type are unlimited tax obligations of the city, and are backed by the full faith and credit of the city. The city presently has no voted bonds outstanding. Non -voted bonds are called "Councilmanic" bonds and are limited by state law to one and one -half percent (1.5 %) of the city's current assessed valuation. The city currently has four general government Councilmanic bonds outstanding totaling $6,628,393, and one grant anticipation note totaling $1,625,000. In 1991, the city issued $250,000 limited tax general obligation bonds for the Balloon Hanger at Fort Worden for performing arts as authorized by Ordinance 2235. The source of monies to repay the debt service for this issue comes from an annual operating transfer from the city's Lodging Tax Fund, which collects the lodging tax. In 1999, the city issued $645,000 limited tax general obligation bonds for various capital improvements. These capital items include: library improvements, police station improvements, fire station improvements, city hall facilities and Port Townsend Marine Science Center improvements as authorized by Ordinance 2709. The source of monies to repay the debt service for this issue comes from a portion of the city's general property tax levy and annual operating transfers from the Lodging Tax Fund. In 2002, the city issued $3,465,000 limited tax general obligation bonds for the construction of the city hall annex building and remodel of old city hall as authorized by Ordinance 2812. The source of monies to repay the debt service for this issue comes from a portion of the city's general property tax levy and real estate excise tax revenues. In 2003, the city issued $2,390,000 in limited tax general obligation bonds for the construction of the city hall annex building and remodel of old city hall as authorized by Ordinance 2844. The source of monies to repay the debt service for this issue comes from a portion of the city's general property tax levy and real estate excise tax revenues. -65 - General Government Debt Service Located in the Appendix is a schedule limitation as established by state law. that computes the city's legal debt Summary of General Government Non -voted Limited Tax Obligation Bonds Total Total Total Year Principal Interest Debt Service 2006 288,801 335,087 623,888 2007 316,744 321,379 638,123 2008 327,741 311,396 639,137 2009 333,800 300,145 633,945 2010 349,920 288,046 637,966 2011 365,401 274,646 640,047 2012 375,000 260,635 635,635 2013 390,000 245,648 635,648 2014 410,000 229,623 639,623 2015 425,000 212,262 637,262 2016 445,000 195,288 640,288 2017 460,000 176,825 636,825 2018 480,000 157,320 637,320 2019 505,000 135,740 640,740 2020 525,000 112,530 637,530 2021 550,000 88,385 638,385 2022 580,000 62,975 642,975 2023 405,000 36,183 441,183 2024 205,000 18,051 223,051 2025 210,000 9,135 219,135 2026 - - - 2027 - - - Totals $ 7,947,407 $ 3,771,296 $ 11,718,703 General Government Debt Service General Government Debt Service Fund Revenues Property Taxes Investment Interest Operating Transfers- In Total Revenues Expenditures Debt Service Principal Debt Service Interest Professional Services Total Expenditures Estimated Beginning Fund Balance Increase <Decrease> in Fund Balance Estimated Ending Fund Balance Budget Budget Year Year Increase 2006 2005 <Decrease> $ - $ 82,207 $ (82,207) 931 200 731 624,493 2,022,591 (1,398,098) $ 625,424 $ 2,104,998 $ (1,479,574) $ 288,801 $ 1,794,912 $ (1,506,111) 335,087 299,886 35,201 1,000 1,000 - $ 624,888 $ 2,095,798 $ (1,470,910) $ 46,571 $ 37,033 $ 9,538 536 9,200 (8,664) $ 47,107 $ 46,233 $ 874 -67- Utility Debt Service The city's utility funds may also issue long -term debt instruments to finance large capital projects. These are typically for utility plant improvements that have long useful lives for which this financing method will reduce the annual debt service burden on its utility customers (ratepayers). Since local governments are permitted to issue tax - exempt bonds, this financing option helps reduce the cost of borrowing. These debt instruments are usually issued as revenue bonds. The source of monies to repay the revenue bond debt service comes from utility revenues, not property taxes. In addition to revenue bonds, cities may apply to Washington State for low interest and /or interest -free loans. This is a competitive process that involves city staff presenting a proposal to Olympia for an application for Public Works Trust Fund Loans and State Revolving Fund Loans. Because of the low interest and interest -free loans, this method of financing public works is very beneficial to the city's ratepayers. The application process is comprehensive and competitive. Those cities scoring highest in the State's evaluation process receive the favorable loans. The more significant qualifying criteria requires cities to: • Impose the 1/4 of one percent real estate excise tax • Develop a long -term plan for financing public work needs • Use all local revenue sources which are reasonably available for funding public works • Adopt a comprehensive plan • Demonstrate a history of maintaining the city's utility system • Demonstrate a commitment to professional management The evaluating criteria are weighted 60% professional management and 40% city need. The city has received four Public Works Trust Fund (PWTF) low interest State loans. One is a PWTF 1998 loan for water projects totaling $2,138,740, for 20 years at an interest rate of 1 %. Another is a PWTF 1999 loan for sewer projects totaling $1,593,739 at an interest rate of 1 %. The third is a PWTF 2001 loan for sewer outfall totaling $1,153,350 at an interest rate of 0.5% for 19 years. A fourth is a PWTF 2002 loan for Morgan Hill water system upgrades totaling $1,242,743, for 20 years at an interest rate of 0.5 %. There are also two no- interest or low interest State Revolving Fund (SRF) loans. One is for the wastewater master plan for $182,620, and the second is for a wastewater conveyance system totaling $1,000,000, for 19.5 years at 1.5 %. The city sold its Tri -Area Water System in December 2001 to the Public Utility District #1 (PUD). As part of that transaction, certain revenue bonds were defeased, and certain state loans were transferred to the PUD. The city rescheduled the state loans when the amounts were finalized. In 1978, the city utility issued $395,000 revenue bonds for capital improvements Utility Debt Service to the utility as authorized by Ordinance 1798. The source of monies to repay the debt service for this issue comes from the revenues of the utility. In 1992, the city utility issued $6,820,000 revenue bonds for capital improvements to the utility as authorized by Ordinance 2305. The source of monies to repay the debt service for this issue comes from the revenues of the utility. Subsequently, the city refunded $4,350,000, of these bonds with a 1998 revenue refunding bond issue to reduce the total debt obligation with new low interest bonds. State Loans Total In 1998, the city utility issued $4,950,000 revenue refunding bonds and $1,000,000 revenue bonds for capital improvements to the utility as authorized by Ordinance 2625. The revenue refunding bonds refinanced $115,000 of the remaining 1978 - Series B revenue bonds and most of the 1992 revenue bonds. The refunding issued produced significant savings in future interest costs to the utility ratepayers. The source of monies to repay the debt service for this issue comes from the revenues of the utility. Revenue and Refunding Bonds Total Total Total Total Year Principal Interest Debt Service 2006 268,895 37,014 305,909 2007 269,475 34,761 304,235 2008 270,063 32,499 302,562 2009 270,659 30,229 300,888 2010 271,265 27,949 299,214 2011 271,880 25,661 297,541 2012 272,504 23,363 295,867 2013 273,138 21,056 294,193 2014 273,781 18,739 292,520 2015 274,434 16,412 290,846 2016 275,096 14,076 289,172 2017 275,769 11,730 287,499 2018 276,452 9,373 285,825 2019 232,427 7,007 239,433 2020 174,250 4,363 178,612 2021 174,974 3,007 177,982 2022 115,007 1,641 116,648 2023 50,347 567 50,914 Totals $ 4,290,416 $ 319,446 $ 4,609,861 In 1998, the city utility issued $4,950,000 revenue refunding bonds and $1,000,000 revenue bonds for capital improvements to the utility as authorized by Ordinance 2625. The revenue refunding bonds refinanced $115,000 of the remaining 1978 - Series B revenue bonds and most of the 1992 revenue bonds. The refunding issued produced significant savings in future interest costs to the utility ratepayers. The source of monies to repay the debt service for this issue comes from the revenues of the utility. Revenue and Refunding Bonds Total Total Total Total Year Principal Interest Debt Service 2006 480,000 142,845 622,845 2007 500,000 122,480 622,480 2008 525,000 100,875 625,875 2009 545,000 78,195 623,195 2010 575,000 54,125 629,125 2011 455,000 27,335 482,335 2012 15,000 6,125 21,125 2013 15,000 5,375 20,375 2014 20,000 4,500 24,500 2015 20,000 3,500 23,500 2016 20,000 2,500 22,500 2017 20,000 1,500 21,500 2018 20,000 500 20,500 Totals $ 3,210,000 $ 549,855 $ 3,759,855 Utility Debt Service The utility debt service payments for the revenue and revenue refunding bonds are budgeted in a utility debt service fund as listed below. The debt service payments for the State trust and revolving loans are budgeted as a debt service line item in the Water /Sewer Fund. A debt service fund for the State loans is not necessary. Water /Sewer Bond Funds Revenues Investment Interest Operating Transfers- In from Water Utility Operating Transfers- In from Sewer Utility Total Revenues Expenditures Debt Service Principal Debt Service Interest Professional Services Total Expenditures Estimated Beginning Fund Balance Increase <Decrease> in Fund Balance Estimated Ending Fund Balance Budget Budget Year Year Increase 2006 2005 <Decrease> $ 9,772 $ 18,500 $ (8,728) 62,664 21,500 41,164 560,181 - 560,181 $ 632,617 $ 40,000 $ 592,617 $ 480,000 $ 465,000 $ 15,000 142,845 162,000 (19,155) $ 622,845 627,000 $ (4,155) $ 488,589 $1,075,589 $ (587,000) 9,772 (587,000) 596,772 $ 498,361 $ 488,589 $ 9,772 -70- Capital Project Funds Capital project funds are used to account for financial resources to be used for the acquisition or construction of major capital facilities (other than those financed by proprietary funds and trust funds). The City has one non - utility capital project fund called the Capital Improvement Fund, and one utility capital improvement fund called the Utility Construction Fund. Capital Improvement Fund Revenues come from several different sources for this fund. The real estate excise tax, bond proceeds, and fund transfers are major sources of revenue for this fund. Some transfers from other funds like the General Fund and Street Fund. Some are revenues deposited into this fund from grants via state and federal sources, "fee in lieu of," "mitigation fees," "impact fees" for applicable projects, and interest income. The real estate excise tax (R.E.E.T.) that is levied by the State is deposited into this fund. This tax is levied on all sales of real estate, measured by the full selling price, including any liens, mortgages and other debts given to secure the purchase. The state levies this tax at the rate of 1.28 percent. A locally imposed tax is also authorized. In 1990 and 1992, the State Legislature made a number of changes in the locally imposed R.E.E.T. As Port Townsend is required to plan under the Growth Management Act (GMA), new language was enacted regarding the first quarter (.025) percent of the tax. Based on the GMA, Port Townsend was given the option of levying a second quarter percent to help defray the costs of implementing the Growth Management Act. The city receives the second quarter of R.E.E.T, which results in a combined rate of 1.78 %. The first quarter percent of the R.E.E.T. receipts must be spent solely on capital projects that are listed in the Capital Facilities Plan element of the comprehensive plan. Capital projects are defined as: "Those public works projects of a local government for planning acquisition, construction, reconstruction, repair, replacement, rehabilitation, or improvement of streets, roads, highways, sidewalks, street and road lighting systems; traffic signals; bridges; domestic water systems; storm and parks recreational facilities; fire /protection facilities; trails; libraries; administrative judicial facilities; and river and /or waterway flood control." The second quarter percent of the R.E.E.T. that is levied and is part of this budget can only be levied by those cities that are required to plan under GMA. In this quarter percent of R.E.E.T. "capital projects" mean: "Those public works projects of a local government for planning acquisition, construction, reconstruction, repair, replacement, rehabilitation, or improvement of streets, roads, highways, sidewalks, street and road lighting systems; traffic signals; bridges; domestic water systems; storm and sanitary sewer systems and planning, construction, reconstruction, repair, rehabilitation, or improvement to parks." When other operating divisions or funds expend monies for qualified projects, -71- Capital Project Funds transfers -out of the R.E.E.T. Fund are used to reimburse the operating division. The interest income is based on prudent investing with the inclusion of construction project scheduling and cash flow analysis. The last major capital project accounted for in this fund was the Union Wharf project. Implementation of project cost accounting systems in 1998 has made it possible to individually track capital projects in this fund. Citv Hall Annex Construction Fund In 2003, a new fund was established to account for all revenues and expenditures for the construction of the city hall annex and the remodeling of old city hall. Bond proceeds received for city construction projects are deposited into this fund. Also, any grants obtained for city hall projects will be accounted for in this fund. City Fire Station Construction Fund In 2003, the city received a grant award from Federal Emergency Management Agency (FEMA) for replacement of the city fire station. To fund the construction costs for this project the city issued grant anticipation notes totaling $1,625,000, and a portion of limited tax general obligation bonds, 2003. Utility Construction Fund The Utility Construction Fund is a capital project fund restricted to expenditures for approved utility improvements. The interest earnings on this fund are also restricted to the approved utility improvement. -72- Capital Project Funds Capital Improvement Fund Revenues Real Estate Excise Tax Federal Grants State Grants State Grants - Transportation Improvement Board State Grants -Sims Way Signal Public Works Trust Fund Loans Local Improvement District Proceeds Investment Interest Miscellaneous Income Interfund Transfer -in 2003 Bond Proceeds Bond and Loan Proceeds Donations Total Revenues Capital Project Expenditures Personnel Building & Structures Street CIP Parks CIP Vessel Removal -RR Trestle Operating Transfer 2002 Bond Payment Operating Transfer 2003/2004 Bond Payment Intergovernmental Loans - Recreation Center Miscellaneous Expense Total Expenditures Estimated Beginning Fund Balance Increase <Decrease> in Fund Balance Estimated Ending Fund Balance Budget Budget Year Year Increase 2006 2005 <Decrease> $ 531,486 $ 400,000 $ 131,486 280,000 - 280,000 345,000 245,000 100,000 89,000 150,000 (61,000) 300,000 50,000 250,000 80,000 85,000 (5,000) 700,000 200,000 500,000 3,484 5,000 (1,516) 15,000 15,000 - 500,000 - 500,000 - 390,000 (390,000) $ 2,843,970 $ 1,540,000 $ 1,303,970 $ - $ 23,658 $ (23,658) - 110,000 (110,000) 1,536,000 785,000 751,000 925,000 565,000 360,000 59,000 - 250,128 (250,128) 375,960 91,630 284,330 25,000 25,000 - 25,000 - 25,000 $ 2,945,960 $ 1,850,416 $ 1,036,544 $ 122,108 $ 376,940 $ (254,832) (101,990) (310,416) 208,426 $ 20,118 $ 66,524 $ (46,406) -73 - Capital Project Funds City Hall /Annex Construction Fund Revenues Investment Interest Federal Grant - Save America's Treasures Donations - Jefferson County Historical Society Miscellaneous Total Revenues Capital Project Expenditures City Hall Annex City Hall Renovation Total Expenditures Estimated Beginning Fund Balance Increase <Decrease> in Fund Balance Estimated Ending Fund Balance Note: Budget Year 2006 450,000 Budget Year Increase 2005 <Decrease> 20,000 $ (20,000) 280,000 (280,000) - 450,000 201,237 (201,237) $ 450,000 $ 501,237 $ (51,237) 450,000 2,850,000 (2,400,000) 450,000 1,150,000 (700,000) $ 900,000 $ 4,000,000 $(3,100,000) $ 2,219,670 $ 3,335,421 $(1,115,751) (450,000) (3,498,763) 3,048,763 $ 1,769,670 $ (163,342) $ 1,933,012 Starting in 2003, all capital improvements for City Hall Annex and Old City Hall Renovation are budgeted in a new fund (Fund 302). In prior years capital improvements were budgeted directly in the General Government Capital Improvement Fund. -74- Capital Project Funds Fire Station Construction Fund Revenues Investment Interest Real Estate Excise Taxes FEMA Grant Federal Grant Proceeds Miscellaneous Residual Equity Transfers Residual Equity Transfers - 2003 Bond Total Revenues Caaital Proiect Expenditures Professional Services Land and Improvements Grant Anticipation Note Payable Building and Structure Total Expenditures Estimated Beginning Fund Balance Increase <Decrease> in Fund Balance Estimated Ending Fund Balance Budget Actual Year Year Increase 2006 2005 <Decrease> $ - $ 31,479 $ (31,479) - 130,000 (130,000) - 1,369,114 (1,369,114) - 1,586 (1,586) 50,000 - 50,000 - 70,000 (70,000) - 280,000 (280,000) $ 50,000 $ 1,882,179 $(1,832,179) $ - $ 30,693 $ (30,693) 50,000 676 49,324 - 1,653,438 (1,653,438) - 1,648,415 (1,648,415) $ 50,000 $ 3,333,222 $(3,283,222) $ - $ 1,457,839 $ (1,457,839) - (1,451,043) 1,451,043 $ - $ 6,796 $ (6,796) -75 - Capital Project Funds Utility Construction Fund Revenues Investment Interest PWTF 2002 Loan Proceeds Operating Transfers -In from Water Fund Operating Transfers -In from Sewer Fund Miscellaneous Total Revenues Capital Project Expenditures General Fund Overhead Expenditures Improvements - Water Improvements - Sewer Total Expenditures Estimated Beginning Fund Balance Increase <Decrease> in Fund Balance Estimated Ending Fund Balance Note: Budget Year 2006 $ 6,823 $ 150,000 350,000 Budget Year Increase 2005 <Decrease> 6,000 $ 823 664,200 (664,200) 900,000 (750,000) - 350,000 $ 506,823 $ 1,570,200 $ (1,063,377) $ 75,000 $ - $ 75,000 375,000 365,000 10,000 330,000 1,275,000 (945,000) $ 780,000 $ 1,640,000 L_(8 $ 341,142 $ 410,942 $ (69,800) (273,177) (69,800) (203,377) $ 67,965 $ 341,142 $ (273,177) Starting in 2002, all capital improvements for water /sewer are budgeted in a new fund (Fund 415). In prior years capital improvements were budgeted directly in the Water /Sewer Fund. -76- N i 3 O H O a O % A u a E Ir- O N L �C Q O E ° N c� .Q U O O O O O O 0 O O o 0 C 0 0 0 0 0 C 0 O O O O O O 0 O ~ c LOn 0 M M M G M LQ � Gl N N N M co O O O O N N O O O O O N N O O O O O O O O O O O O O O O O L O L O N L N L O N N N M V O) CO N O O O N N M O) 0 V O) V O) n O N r r O I- I- I- C-4 O O O O co M O M O O O O 0 a) M 0 0 0 O c O G G c o N 00 ° p O U) M U) V o0 r N � 0 0 0 0 00 00 W fn U c (0 c N N U17 c c N T7 LO U) U) � M M m W 6 O) � O O O O O O r O r O M M M M M M OD G1 M 00 00 dO 0 0 d O 0 0 0 00 () O U O O O U C N U C 0) 0) LiI = C 3 C C C > C w LL E E. 0 0) +y U Q a) N N y LL M 0 0 U d d w U O F a Q C LL N U X N N o N D 2 y _— u) N N W Q N N o M fn d X 0 r O LL LL = 7 N lL a) r _ a U ~ Q N N Gl N y X U) N F 7 M LL1 = LL LL N N N U Q U U ii a .0) d m O O O O O O 0 0 0 0 0 0 0 O O O O O O F LO 0 M M M M LQ G1 N M co O O N O O N O O O O O O O O O L L O N N N O N 0 N O O O O O O O O O O O O 0 0 0 0 0 0 c O c c o N 0 0 0 0 O fn U c (0 c N N c c N LO U) U) � m W M 6 O) x X W O O r O M M M M Gl OD OD M (D dO 0 0 0 0 0 0 () O O O N i O C LL 0) +y U Q a) -2 N N y M O O F a Q N a) o 0 0) N W O= O M 'N 0 c U a) .O a Q N N .O y X , M LL1 = LL LL N O Q U U ii a a� N i 3 O H O a O % A u a Er r O N ^L �C Eo N c� .Q U o0 00 0 0 0o 0o 0o 0o 0o 0o 0 C 0 C 0 C 0 C C (o O N 0 0 o o N 00 m o (o (0 O In V N r o o M 01 O O - co N M W (0 fC N M o O 01 � (0 O O (O M N (O M 00 O O V V M O I� ln N O O N V I- N G O N o O V a) D N r N M O N O LO o O O O (O 0 I� M O O O N In O N V I: N O Q N 0 V O N N N N o O (o 0 O � O(1) 0 N (O O d) V O O O O O O O O O In co o O 0 d) r N 0 W N N O N cl V p O N -7 V N N 0� 0 0 0 rn v 0 0 0 0 0 0 0 O rn rn rn rn rn rn O to O (O to to to M O O mm O O O) o md) (( O p d) d) m O O O O O i!: L OD O M M M M 00 N V I- M V N N 0 N d 0 o N N O N N O 0) O O W C 01 m o W M o x X W s= c 0 O � M 3 O V != IN M N F > N U N U O r a` I- O O O O O O m N N m O E N LOO m O O O 0 O 0 O 0 O 0 O to W O In m M 00 W co N In In In O O In w V m m O O O d) N 05 O N O M O M V V M In O M N U o o m o m d d Li CU 00 00 00 00 00 0) N N 0) O 0 O > c Y W 0) O a 05 m I- m O O O O O v O O O O O rn 0 o . 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C U (n L CL CO .N � 02 co �O C — E g .N a m a) N (6 (0 � 00 c a N E r o H > N L 0 O CL C) CL E o 4- N O U cL Al U N oc o o 0 O 00 � R O O O O O O 0 O � � F f0 O N O O N a o O O Efl Efl Efl Efl Efl Efl Efl Efl 0 R R 0 0 O O r ' Efl Efl N V w 0 � F f0 O o O Ln � Efl O o O Ln Efl O N c o N t- o o N (D 00 Efl Efl Efl Efl Efl Efl Efl Efl Efl O o O O O O O o o oo O O O N O O LD o o o N N Efl LD N Efl I� O L O U N N K Q Efl 00 o O o O o O L() O a L() O N L() I- O m m u o N J o 7 U O 6 n d w 7 c U O L, LL O w m O O O O O O N C) O r m � N Ln O m c w o o aw' N N oc o o 0 0 O O O O O O O O 0 0 0 0 R R 0 0 O M N V w 0 � F f0 Efl Efl Efl Efl Efl Efl Efl Efl Efl Efl O O O O O O LD O LD N LU I� O N Efl o O o O o O L() O L() O N L() I- O N Efl O O O O O O O O O L() O L() a) N Ln r o N Efl Efl O O O O O O O O O L() o L() W N Ln r o N o o o o o- o o o r L(i L() o O N L() I- N O O O o oo o o co o L() o L(i 00 L() N L() N N Efl Efl w o o o L O W m co m W m U v v v � � � Q rn rn a0 rn o) o) o) N N N V V V IL O IL o W a W � R d o - F w o d o m o o oo .� .� r m O o m Q Ed m � r v d ( w ( Q o o o ° m a L _j O u- N oc Water /Facilities /Equipment Divisions City Manager Public Works Director Operations Manager Water & Facilities Water Crew Chief Maintenance Workers /Operators (4 FTE) Seasonals (0.7 FTE) Water Resources Crew Chief Equipment & Facilities Crew Chief Mechanic Maintenance Wo rke r Water /Sewer Utility Fund Water Utility Division • Flushed the entire distribution system to remove accumulated Mission Statement: sediment and stale water. The water utility shall provide a safe, • Installed 83 ( +) new water taps reliable water supply that meets all and meters. federal and state standards and shall . Installed 409 ( +) replacement provide high quality service to its meters. customers. • Repaired 7 water main breaks. • Installed 18 new fire hydrants. Goals for 2006 • Replaced 2,138 feet of old, undersized, galvanized water • The water utility will stay main. informed on state and federal . Tested flow and residual pressure issues and regulatory trends. on 83 fire hydrants. • The utility will plan for . Completed an inventory of cross compliance with new regulations connection control devices. on water quality. Added 8 new businesses to the • The utility will stay involved in program. the regional water resource . Added Morgan Hill pump station planning process. to the distribution system. • The water utility will obtain special use permit renewals from Water Quality and Treatment the U.S. Forest Service. • The water utility will concentrate . Treated an average of 15 million capital improvement programs gallons per day. on areas identified as having . Delivered an average of one deficient fire protection and million gallons a day to the restricted flow. distribution system and 14 • The water utility will improve its million gallons a day to Port cross connection control Townsend Paper Company. program. • Continued extensive, required monitoring and testing programs Water Distribution to maintain and document water quality, at the source, after Year 2005 accomplishments treatment, and in the distribution system. • Reliably delivered safe clean • Continued required watershed drinking water to 4,296 taps / control program in cooperation 8 500 customers at up to with the U.S. Forest Service. 2,000,000 gallons per day. • Continued to meet the stringent • Reliably delivered safe clean water quality criteria for drinking water to Fort Worden avoidance of filtration. State Park and to P.U.D. Number . Published and distributed One of Jefferson County. consumer confidence reports. • Accurately read 4,296 meters each month. Water /Sewer Utility Fund • Continued participation in regional water resource planning efforts. • Continued the process for renewal of our U.S. Forest Service special use permits. Street /Sewer /Storm Divisions City Manager Public Works Director Operations & Maintenance Manager Street /Sewer /Storm Wastewater Street /Sewer /Storm Treatment I Crew Chief Wastewater Treatment Facilites Wastewater Treatment Plant Operators (3 FTE) Biosolids Biosolids /Compostor Treatment Plant Operators (2 FTE) Equipment Operators (5 FTE) Seasonal Part time (0.5 FTE) Water /Sewer Utility Fund Wastewater Collection Division (In coniunction with Street /Storm Funds) Function: To maintain the Wastewater Collection System in order to provide for the safe transmission of wastewater from the source to the Wastewater Treatment Facility. Goals and Obiectives Goal: Reduce the number of sewer overflows and back -ups, emergency calls and liability to the City. Rehabilitate or replace failing portions of the collection system as CIP funding allows. Adhere to the six -month cleaning schedule of problem lines. Clean one complete sewer basin as established in the yearly basin -by -basin cleaning schedule. This is to clean all sewer lines throughout the collection system over a five -year schedule. This effort is in addition to the six -month cleaning of problem sewer lines. Perform maintenance and treatment of known grease problem sewer lines. To work cooperatively with the businesses on reducing the discharge of grease into the wastewater collection system. This will be done by enforcement of the City's sewer ordinance and working with the businesses on the installation and maintenance of grease traps. To root cut approximately 2,000 feet of sewer line as identified in the Wastewater Comprehensive Master Plan and known lines with root problems. 2005 Accomplishments Cleaned all sewer lines on the list of problem lines that require a six -month cleaning schedule. Cleaned 30% of one of the five basins as identified in the five year cleaning program. Root cut approximately 3,000 feet of problem sewer lines. Now televising the lines to see the effectiveness of the application of RootX on controlling the roots coming into these lines. Replaced 100 feet of failing sewer mainlines. Installed or rebuilt three maintenance holes in the existing collection system. Televised 31,493 feet of the sewer lines to check on condition and problems in the lines. Performance Indicators 2005 as of 2006 2003 2004 10/31/2005 Estimated Number of citizen concern/requests received 51 21 16 15 Number of feet of line cleaned on 6 month schedule 7,000 7,500 8,000 7,500 Maintenance holes installed /rebuilt 5 5 3 6 Complete cleaning of one sewer basin (five year 50% 40% 30% 50% program) Length of sewer lines (feet) performed root cutting 3,000 1,000 3,000 3,000 Length of sewer lines (miles) in the city 70 70 71 72 Hours spent on televising sewer lines (inspecting 30 60 90 100 Water /Sewer Utility Fund Wastewater Treatment Division Function: To provide for the treatment of wastewater and the operating, monitoring and maintenance of the facilities in compliance with federal and state laws and regulations and in agreement with the City's concerns for public safety and health and environmental quality. The wastewater treatment facility (WWTF) is responsible for the operation and maintenance of eight sewage lift stations that support the City's wastewater collection system and is responsible for one storm water lift station. Goals and Obiectives Goals: • Operate the wastewater treatment facility within all limits required by our N.P.D.E. S. (National Pollution Discharge Elimination System) permit. • Operate and maintain all of the lift stations to assure optimal performance and reliability. Objectives: • Continue to operate the wastewater treatment facility to prevent violations of the N.P.D.E.S. permit by providing monitoring and maintenance of the facility and by enforcement of the City's sewer use ordinance (PTMC 13.21 through PTMC 13.24). • Continue to operate and maintain the lift stations to provide optimal performance and reliability by performing regular scheduled maintenance on all of the equipment. Continue to implement the approved capital improvement program (CIP). • Continue to work with the wastewater collection division in the removal of infiltration and inflow (rain) from the collection system. Continue to operate the facilities as efficiently and economically as possible to produce the best effluent quality possible within the available resources. Maintain the facility to ensure the prolonged life of the capital investment. 2005 Accomplishments • We have operated the WWTF within all the N.P.D.E.S. permit limits. • All maintenance activities were performed on all of the equipment at the wastewater facility and sewage lift stations and we had no major failures in our system. • Installed new coating on the walls of the wet well at Gaines Street lift stations for protection of the concrete. • Received operations award for 2004 from the Washington State Department of Ecology for exemplary performance in the operation of the City's Wastewater Treatment and Collection systems. • Assisted in the installation of the on- shore portion of the outfall line increasing the capacity from an 18 inch to a 20 inch pipeline. • Marel Harstad received Laboratory Analyst Excellence Award from the Pacific Northwest Clean Water Association for the year of 2005. Ima Water /Sewer Utility Fund (1) N.P.D.E.S. is National Pollution Discharge Elimination System. (2) When the facility reaches 85% the City is required to submit a plan and a schedule for continuing to maintain capacity at the facility sufficient to achieve the effluent limitations and other conditions of the permit. 2005 Performance Indicators 2003 2004 as of 2006 10/31/05 Est. Oversee the treatment facility within the N.P.D.E.S. permit limits. (1) 100% 100% 100% 100% Wastewater treatment facility capacity (% used) Flow 61.8% 61.9% 62.3% 64% based on the new rating of the facility 2 Wastewater treatment facility capacity (% used) BOD based on the new rating of the facility (2) 64.7% 61.2% 66.9% 67% Wastewater treatment facility capacity (% used) TSS 52.3% 53.0% 56.3% 57% based on the new rating of the facility 2 Average flow rate per day (million gallons) 0.890 0.892 0.897 0.900 Cost to treat the wastewater (per gallon) $ 0.0036 $ 0.0038 $ 0.0037 $ 0.0038 (1) N.P.D.E.S. is National Pollution Discharge Elimination System. (2) When the facility reaches 85% the City is required to submit a plan and a schedule for continuing to maintain capacity at the facility sufficient to achieve the effluent limitations and other conditions of the permit. Water /Sewer Utility Fund Biosolids Composting Division Function: To provide biosolids, septage and yard waste composting treatment and the operation, monitoring and maintenance of such facilities in compliance with federal and state laws and regulations and in agreement with the City's concerns for public safety, health and environmental quality. Goals Operate the biosolids composting facility within all limits required by our State Waste Discharge permit. This is the liquid portion of our process. To produce Class "A" exceptional quality compost materials that meets all federal and state regulations for distribution to the public. Operate and maintain all of the equipment at the facility to assure optimal performance and reliability. Operate the biosolids composting facility in a fiscally responsible manner to reduce the costs to the utility rate - payers. Objectives Continue to efficiently operate the biosolids composting facility to prevent violations of the State Waste Discharge permit by providing continued monitoring and maintenance of the facility. Continue to operate and maintain the equipment to provide optimal performance and reliability by performing regular scheduled maintenance on all of the equipment. Investigate charging for yard waste materials to cover the cost of processing and handling of the materials coming into the facility. Continue to operate the wastewater treatment facility as efficiently and economically as possible to produce the best effluent quality possible within the available resources. Monitor and test the compost materials for compliance with all federal and state regulations to be classified as Class "A" exceptional quality compost materials for distribution to the public. 2005 Accomplishments The facility has been operated within all of the State Waste Discharge permit limits. To 10/31/2005 we have produced three batches of compost for distribution to the public. To 10/31/2005 we have sold 2,658 cubic yards of compost to the public. Have provided 481 cubic yards of compost for general City use and City projects. Also donated 95 cubic yards to community projects. Water /Sewer Utility Fund (1) N.P.D.E.S. is National Pollution Discharge Elimination System. -91- 2005 2006 Performance Indicators 2003 2004 as of Est. 10/31/05 Oversee the treatment facility within the N.P.D.E. S. permit 99.99% 100% 100% 100% limits. 1 To produce class "A" compost for distribution to the public with a goal of having at least three sale events during the year. 7 3 3 4 Batches produced are: Septage received (Gallons) 436,776 390,493 393,197 400,000 Dry Tons of biosolids processed 213.58 210.40 205 230 Yard Waste Received (Tons) 5,036 5,783 6,247 7,000 Finished Compost Produced (cubic yards) 3,347 1,822 3,234 3,500 (1) N.P.D.E.S. is National Pollution Discharge Elimination System. -91- Water /Sewer Utility Fund Revenues Revenues from Utility Sales Miscellaneous Operating Revenues Engineering Fees Investment Interest Biosolids Compost SDC Residual Equity Transfers Water /Sewer Latecomer Fees System Development Charges Total Revenues Expenditures by Program Utility Billing City Water Operations City Water Supply Wastewater Treatment Wastewater Collection Biosolids Water Resources Total Expenditures Expenditures by Object Personnel Supplies & Services Utility Taxes Intergovernmental Services Interfund Services Equipment Rental Debt Service Transfers Out Capital Outlay Total Expenditures Estimated Beginning Fund Balance Increase (Decrease) in Fund Balance Estimated Ending Fund Balance Budget Budget Year Year Increase 2006 2005 < Decrease> $ 4,332,301 $ 4,173,889 $ 158,412 46,905 7,116 88,833 23,000 100,000 5,000 46,905 - 7,116 - 61,000 27,833 23,000 - 100,000 - 5,000 - $ 4,603,155 $ 4,416,910 $ 186,245 $ 374,999 $ 396,249 $ (21,250) 1,405,114 1,335,194 69,920 368,468 323,327 45,141 1,546,512 1,013,208 533,304 1,031,613 789,443 242,170 321,157 304,651 16,506 75,341 73,675 1,666 $ 5,123,204 $ 4,235,747 $ 887,457 $ 1,266,068 $ 1,257,822 $ 8,246 718,126 708,999 9,127 540,230 535,137 5,093 18,400 18,400 - 954,338 691,478 262,860 188,039 176,707 11,332 928,754 337,954 590,799 400,000 400,000 - 109,250 109,250 - $ 5,123,204 $ 4,235,747 $ 887,457 $ 3,826,350 $ 4,077,199 $ (250,849) (520,049) (250,849) (269,200) $ 3,306,301 $ 3,826,350 $ (520,049) -92- Storm Water Utility Fund Storm Water Division (In conjunction with Streets/Wastewater) Function: To clean and maintain the Storm water Collection System to provide for the safe and efficient transmission of storm water to prevent damage to public and private property. Goals and Objectives Goal: Continue to maintain the Storm water Collection System in the most efficient and cost - effective manner possible. • Continue the use of Community Service Work Crews to provide clearing of vegetation from the storm water collection system (gutters). • Continue the installation of new catch basins that are needed throughout the system for better treatment of storm water. • Continue to assist the Engineering Department in evaluating storm water issues. • Identify shoulders that need to be pulled to allow water to get into drainage ditches (swales). This is to prevent damage to the streets by allowing the water to get away from the asphalt area. Goal: Adopt a Storm water Master Plan and implement approach decided by Council • Develop a scope of work to work towards getting the Draft Plan adopted by the Community and Council. Goal: Increase the percentage of storm systems cleaned annually. • Cleaned 90% of the system using a basin by basin approach to cleaning the entire storm water system. • Provide routine maintenance inspections for storm water collection facilities. • Performed contract maintenance on storm water filters at Washington & Taylor and Blaine & Tyler. Performance Indicators 2003 2004 2005 as of 10/31/05 2006 Est. Number of citizen concerns received 33 10 12 15 Number of catch basins cleaned (in percent) 75 75 90 90 Number of Catch Basins (new or replaced) 6 9 6 10 Miles of street shoulders pulled for storm water control 2 1 1.1 2 Storm water piping installed, new or replaced, (Feet) 850 600 400 800 Number of catch basins in the storm water system 1000 1010 1020 1040 -93 - Stormwater Utility Fund Revenues Revenues from Utility Sales Engineering Fees Investment Interest Miscellaneous Receipts State Revolving Fund Proceeds Total Revenues Expenditures by Program Stormwater Operations Capital Improvement Projects Total Expenditures Expenditures by Object Personnel Supplies & Services Utility Taxes Interfund Services Equipment Rental Debt Service Capital Outlay Total Expenditures Estimated Beginning Fund Balance Increase <Decrease> in Fund Balance Estimated Ending Fund Balance Budget Budget $ (36,905) Year Year Increase 2006 2005 <Decrease> $ 457,381 $ 442,341 $ 15,040 4,255 4,255 - 4,697 5,833 (1,136) 1,282 1,282 - $ 467,614 $ 453,711 $ 13,903 $ 411,503 $ 450,933 $ (39,430) 132,500 165,000 (32,500) $ 544,003 $ 615,933 $ (71,930) $ 153,063 $ 189,968 $ (36,905) 30,735 29,929 806 51,585 51,585 - 121,017 107,864 13,153 55,103 55,103 - - 8,984 (8,984) 132,500 172,500 (40,000) $ 544,003 $ 615,933 $ (71,930) $ 234,843 $ 397,065 $ (162,222) (76,388) (162,222) 85,834 $ 158,455 $ 234,843 $ (76,388) Equipment Rental Fund Equipment Rental Fund has two divisions starting in 2006. The first is the Fleet Division, which is a division under the Public Works Director and Operations Manager for Water, Fleet, and Facilities. This division manages the heavy equipment rental and replacement for each city department (inspection, excavation, grading, paving, sewer maintenance, etc.). The Fleet Division is supervised by a Crew Chief, who also has responsibilities for city facilities. The division has one mechanic. The fleet currently consists of approximately 60 vehicles and 70 other pieces of motorized Revenues Revenues from Equipment Rentals -Fleet Revenues from Equipment Rentals -IT Miscellaneous Receipts Investment Interest or hydraulic equipment. The second division is the Information Technology Division, which operates under the Finance Director's administration. Starting in 2006, the Equipment Rental Fund has added a new division for Information Technology (IT). The IT division will be responsible for all city computer information systems as well as other technology equipment. Budget Budget Year Year Increase 2006 2005 <Decrease> $ 498,892 $ 525,297 $ (26,405) 73,660 - 73,660 25,348 15,000 10,348 Total Revenues $ 597,900 $ 540,297 $ 57,603 Expenditures by Program Operations and Maintenance -Fleet Division $ 409,122 $ 366,496 $ 42,626 Operations and Maintenance - Information Tech Division 73,660 - 73,660 Capital Asset Additions -Fleet Division 280,000 280,000 - Capital Asset Additions - Information Tech Division - - - Total Expenditures $ 762,782 $ 646,496 $ 116,286 Expenditures by Object Personnel $ 179,339 $ 101,572 $ 77,767 Supplies & Services 151,218 151,708 (490) Interfund Services 152,225 113,216 39,009 Capital Outlay 280,000 280,000 - Total Expenditures $ 762,782 $ 646,496 $ 116,286 Estimated Beginning Fund Balance Increase <Decrease> in Fund Balance Estimated Ending Fund Balance $ 1,267,391 $ 1,373,590 $ (106,199) (164,882) (106,199) (58,683) $ 1,102,509 $ 1,267,391 $ (164,882) -95 - Firemen's Pension and Relief Fund Pension funds are used to account for financial resources to pay retiree benefits. "In order to make provisions for retirement and pension for members of the Port Townsend volunteer fire department" (Ord 1294 § 2, 1953), this fund was created to accumulate monies for pension benefits for members of the volunteer fire department that existed prior to the creation of the State's Law Enforcement Officer's and Fire Fighters' (LEOFF) Retirement System. The City has 5 Revenues Real Property Tax Fire Insurance Premium Tax Investment Interest Total Revenues Expenditures by Program Pension Benefits Total Expenditures Expenditures by Object Professional Services Interfund Services Pension Benefits Total Expenditures Estimated Beginning Fund Balance Increase <Decrease> in Fund Balance Estimated Ending Fund Balance remaining Fire Department retirees covered under this pension system (1 entitled to pension benefits and all 5 entitled to medical benefits). The remainder of the Fire Department firefighters are covered under the State's Retirement system. Budget Actual Year Year Increase 2006 2005 <Decrease> $ 66,000 $ 73,600 $ (7,600) 7,514 5,308 2,206 5,954 2,000 3,954 $ 79,468 $ 80,908 $ (1,440) $ 91,829 $ 70,532 $ 21,297 $ 91,829 $ 70,532 $ 21,297 $ 7,000 $ - $ 7,000 1,894 1,087 807 82,935 69,445 13,490 $ 91,829 $ 70,532 $ 21,297 $ 297,718 $ 287,343 $ 10,376 (12,361) 10,376 (22,736) $ 285,358 $ 297,718 $ (12,361) Transmission Line Replacement Fund The city established the Transmission Line Replacement Fund in 1956 to set aside moneys held in trust for system replacements or betterments to the Olympic Gravity Water System pipeline. This pipeline carries water from the Quilcene Rivers to the city. The trust fund was established 1956 for specific capital improvement purposes (Ordinance 1321). The Water Utility Fund contributes moneys each year to this trust fund to build up resources for future needs of the pipeline. Revenues Operating Transfers -in Investment Interest Total Revenues Expenditures by Program Capital Improvements Interfund Services Total Expenditures Expenditures by Object Professional Services Operating Expenses Capital Outlay Total Expenditures Estimated Beginning Fund Balance Increase <Decrease> in Fund Balance Estimated Ending Fund Balance Budget Actual Year Year Increase 2006 2005 <Decrease> $ 50,000 $ 50,000 $ - 111,253 71,041 40,212 $ 161,253 $ 121,041 $ 40,212 $ - $ 1,630 $ (1,630) 118,673 6,020 112,653 $ 118,673 $ 7,650 $ 111,023 $ 100,000 $ 1,630 $ 98,370 18,673 6,020 12,653 $ 118,673 $ 7,650 $ 111,023 $ 3,224,738 $ 3,111,347 $ 113,391 42,581 113,391 (70,810) $ 3,267,319 $ 3,224,738 $ 42,581 -97- Memorial Fund The city established the Memorial Fund in 1988 to accept any money or property donated, devised or bequeathed to it. This is a trust fund Revenues Contributions and Donations Investment Interest Total Revenues Expenditures by Program Operations & Maintenance Capital Improvements Total Expenditures Expenditures by Object Professional Services Capital Outlay Total Expenditures Estimated Beginning Fund Balance Increase <Decrease> in Fund Balance Estimated Ending Fund Balance established to carry out the terms of the donation, devise or bequest if within the powers granted by law (Ordinance 2016 and 1933). Budget Budget Year Year Increase 2006 2005 <Decrease> $ 87 $ 55 $ 32 $ 4.373 $ 4.318 $ 55 $ 4,460 $ 4,373 $ 87 Golf Course Fund The city established the Golf Course Fund in 2006 to set aside moneys for long -term care and maintenance of the city golf course. Lease income from lease of the golf facilities are deposited into this fund. Revenues Contributions and Donations Facility Rentals - Long Term Investment Interest Total Revenues Expenditures by Program Operations & Maintenance Capital Improvements Total Expenditures Expenditures by Object Professional Services Capital Outlay Total Expenditures Estimated Beginning Fund Balance Increase <Decrease> in Fund Balance Estimated Ending Fund Balance Budget Budget Year Year Increase 2006 2005 <Decrease> $ 29,000 - 29,000 $ 29,000 $ - $ 29,000 20,000 - 20,000 $ 20,000 $ - $ 20,000 29,000 $ 29,000 $ 9,000 _ $ 9,000 $ - 29,000 - $ 29,000 9,000 - $ 9,000 Budget Calendar May 13, 2005 City Manager meets with Finance Department to review budget matters May 18, 2005 Finance Director drafts budget calendar May 23, 2005 City Manager provides City Council workshop overview for FY 2006. June 10, 2005 Finance Director provides departments with budget instruction packet for preparing preliminary budget estimates. June 10, 2005 Finance Director requests all departments prepare budget estimates for revenues, operating and maintenance expenditures, capital expenditures, equipment rental expenditures, city contracts, grant awards, and budget carryovers from prior year. (Must be by fourth Monday in September) 2nd half June City Manager meets with department directors to review budget requests and compare to Council stated goals and objectives. (Must be on or by first business day in the third month prior to beginning of the fiscal year) July 1, 2005 Finance Director notifies all departments to submit their budget requests within 14 days — estimated revenues and expenditures. Send notices to non - profit service providers to submit requests for funding (Must be by fourth Monday in September) July 1, 2005 Notify Non - profit service providers submit budget request to City Manager by July 15. July 15, 2005 Finance Director estimates beginning fund balances for next year. July 15, 2005 Finance Director updates estimated revenues from state shared revenues (AWC budget projections and other sources not available until August). July 15, 2005 Department Directors file their budget estimates with Finance Director and City Clerk. All departments shall submit detailed estimates of expenditures to be financed with debt or warrants, and the proposed source of funding. (Must be by fourth Monday in September) July 19, 2005 City Council Finance Committee reviews revenue sources for the coming year's budget, including consideration of possible increases in property tax revenues. (Must be before Council votes on property tax levy) _100- Budget Calendar August 8, 2005 Finance Director provides Proposed Preliminary Budget to City Manager. (Draft preliminary budget provided to City Manager no later than first business day in October) August 10, 2005 City Clerk publishes Notice of Public Hearing on city tax levy for 2006. August 11, 2005 City Manager provides current information on estimates of revenues from all sources as adopted in current budget to City Council. (No later than the first Monday in October). City Manager also provides the City Council with Finance Director's Proposed Preliminary Budget setting forth the complete financial program, showing expenditures requested by each department and sources of revenue by which each such program is proposed to be financed. August 22, 2005 City Council holds public hearing and sets property tax levies by ordinance. (Must be done on, or before November 15) October 12, 2005 City Clerk publishes notice of filing of City Manager's Preliminary Budget, and notice of public hearing on final budget. (No later than the first two consecutive weeks in November) October 19, 2005 City Manager's Preliminary Budget provided to public. (No later than six weeks before January 1) October 24, 2005 City Council holds final hearing on proposed budget. (Must be on or before frrstMonday of December, and may be continued to not later than the 25th day (December 7) prior to next fiscal year) November 14, 2005 City Council makes final adjustments and adopts budget by ordinance. (Following the public hearing and prior to the beginning of the ensuing fiscal year - no later than December 31) December, 2005 Copies of adopted budget available to the public. (Must be within 30 days of adoption) March 31, 2006 Council meet to set city goals for fiscal year 2007. - 101 - Computation of Legal Debt Margin General Capacity Special Purpose Capacity Excess Parks & Utility Total Description Councilmanic Levy Open Space Purposes Capacity 2006 Assessed Value (AV) _ $1,156,702,595 2.5 % of AV 1.5% of AV $ 17,350,539 $ 28,917,565 $ 28,917,565 $ 28,917,565 $ 86,752,695 STATUTORY DEBT LIMIT $ 17,350,539 $ 28,917,565 $ 28,917,565 $ 28,917,565 $ 86,752,695 Less Debt Outstanding: G.O. Bonds $ (7,947,407) $ (7,947,407) $ (7,947,407) Add amount available in Debt Service Fund $ 51,168 $ 51,168 $ 51,168 REMANING DEBT CAPACITY $ 9,454,300 $ 21,021,326 $ 28,917,565 $ 28,917,565 $ 78,856,456 TOTAL DEBT CAPACITY Outstanding 9% Remaining 91% -102- Consery Lm Tax Levy Rate by District 2006 lade, County 18% =_ral -103- L 0 r.+ N C M Q J � X N cv N Q L Q 0 OL 0 CL 0 � L Q V Q U �� O O O O O O U� O U� O U� O N N O O Ef} 6rk EA EA EA EA C) 0 N LO O O N O O N M O O N N O O N O O N 0 0 0 N r co r r- r r LO r r Personnel Services The City of Port Townsend provides quality services and programs for its citizens with a responsive staff of 87 full -time and 37 part-time budgeted positions for 2006 Port Townsend has a competitive, market -based salary and benefits. Salary and benefits make up a major portion of the operating budgets. The Police, Fire and General bargaining unit employees received a COLA increase in January 2006 of 2.4 %. The General bargaining unit employees received an additional 2% market adjustment increase. Non - represented employees received a COLA increase in January 2006 of 2.4 %. Benefits for regular status full -time employees include vacation and sick leave and paid holidays. Employees may qualify for additional types of leave such as jury, emergency, bereavement, military and family medical leave. The City provides comprehensive benefits to its retired LEOFF I employees. Police, bargaining unit employees and non - represented employees participate in the Social Security program and the city matches their contributions (7.65 %). Firefighters hired after April 1, 1986 participate in Medicare only with a city match as well (1.45%). Substantially all City full -time and qualifying part-time employees participate in either the Public Employees Retirement System (PERS) or the Law Enforcement Officer's and Firefighters Retirement System (LEOFF). PERS and LEOFF are statewide local government retirement systems administered by the Department of Retirement Systems. Pension Rate of Contribution Plan Citv Emulovee Total LEOFF II 4.39% 6.99% 11.38% PERS I 2.44% 6.0% 8.44% PERS II 2.44% 2.25% 4.69% PERS III 2.44% variable variable The City of Port Townsend pays $770.88 for medical, dental and vision coverage for employees in the general government, between $498.71 and $1235.32 for fire (depending on dependent coverage) and $904.44 for police bargaining units. Fire employees pay 15% for dependents, and Police and General government employees pay 10% towards their medical for dependents. The City funds positions at their full annual cost for budgetary purposes even if it is projected that vacancies might occur. It is the City Council's objective to provide sufficient funding for recruiting and maintaining highly qualified personnel. BARGAINING UNITS • General Government Teamsters Local 589 (42 members, contract expires December 31, 2005) • Fire Department International Association of Fire Fighters Local 2032 (9 members, contract expires December 31, 2006) Police Department Teamsters Local 589 (13 members, contract expires December 31, 2007) LABOR RELATIONS The City employees who are eligible under state law to be represented by a Labor organization are employed under provisions on such matters as salaries, vacation, sick leave, medical and dental insurance, working conditions and grievance procedures. -105- Personnel Services The City strives to complete these agreements in a timely manner, consistent with all applicable state laws and promote labor relations policies mutually beneficial to administrative management and employees. Fire Department Officer Salary Schedule Classification Minimum Monthly Maximum Monthly Firefighter/EMT $4015.81 $4780.73 Firefighter/ILS $4254.85 $5067.57 Firefighter/Paramedic $4398.27 $5211.00 Lieutenant/EMT $5043.67 $5282.71 Lieutenant/ILS $5330.51 $5569.55 Lieutenant/Paramedic $5473.94 $5712.97 Captain/EMT $5258.80 $5497.84 Captain/ILS $5545.65 $5784.68 Captain/Paramedic $5689.07 $5928.11 Assistant Fire Chief $5736.88 $5975.91 Police Department Officer Salary Schedule Classification Minimum Hourly Maximum Hourly Police Sergeant $26.07 $29.50 Police Officer $22.10 $25.01 Library Department Non - represented Salary Schedule Classification Minimum Maximum Manager $3734.42 $4564.30 Assoc. Librarian $3134.60 $3831.18 Senior Associate $15.16 $18.53 Library Associate $13.37 $16.34 Assistant $12.14 $14.83 Processing Tech. $11.07 $13.53 Page $7.63 $9.33 General Government Salary Schedule Classification Minimum Monthly Maximum Monthly Equipment Operator 1 $3190.28 $3610.55 Equipment Operator 2 $3262.75 $3692.56 Maintenance Worker 1 $2679.12 $3032.05 Maintenance Worker 2 $2836.93 $3210.65 Lead Equipment Operator $3708.36 $4196.86 Crew Chief- St/WWC /Storm $4024.77 $4554.97 Crew Chief -Water Dist. $4024.77 $4554.97 Park Crew Supervisor $3561.66 $4030.85 Park Assistant $2664.59 $3015.61 Crew Chief - Support Service $4024.77 $4554.97 Treatment Plan Operator 1 $3031.92 $3431.34 Treatment Plan Operator 2 $3262.75 $3692.56 Assist. Treatment Plant Operator $2892.63 $3273.69 Water Resource Asset Mgr $4024.77 $4554.97 GIS Coordinator $3406.68 $3855.45 P.W. Assist. Adm. Mgr. $2693.09 $3047.86 Public Works Office Lead $3382.50 $3828.08 Public Works Assistant 1 $2264.90 $2563.26 Public Works Assistant 2 $2479.00 $2805.56 Development Review Spec.l $2483.38 $2810.52 Development Review Spec.2 $2777.59 $3143.49 Public Works Receptionist $2264.90 $2563.26 Public Works Inspector $3382.50 $3828.08 Fleet Mechanic $3327.15 $3765.45 Engineering Technician 1 $3013.01 $3409.93 Police Admin. Supervisor $3162.49 $3579.10 Police Clerk $2560.05 $2897.30 Parking Enforcement/Prop $2688.01 $3042.11 Proj ect/Grant Accountant $3406.69 $3855.46 Accounting Assistant 1 $2714.50 $3072.10 Accounting Assistant 2 $2877.38 $3256.43 Utility Billing Clerk $2714.50 $3072.10 Lead Utility Billing Clerk $3028.97 $3427.99 Land Use Specialist $3423.16 $3874.11 -106- Personnel Services Code Enforcement/Plan Review/Bldg. Inspector 1 $3470.96 $3928.20 Code Enforcement/Plan Review/Bldg. Inspector 2 $3600.25 $4074.52 Permit Coordinator $3600.25 $4074.52 Permit Technician $2978.97 $3371.40 DSD Administrative Assist. $16.03 $18.14 Building Custodian $2522.68 $2855.00 Finance Director $6065.65 $7413.57 Deputy Finance Director $4400.82 $5378.78 *These tables represent base salaries and do not include longevity, or incentive pay. They may also not be currently staffed or filled. Elected Officials Salary Schedule Classification Annual Salary Mayor $9,000 Council Members $6,000 Non - represented Staff Salary Schedule Classification Minimum Monthly Maximum Monthly City Manager $7225.33 $8830.95 City Attorney $5999.17 $7332.31 City Clerk $4446.70 $5434.86 DSD Director $5657.40 $6914.60 Public Works Director $6082.51 $7434.17 Finance Director $6065.65 $7413.57 Deputy Finance Director $4400.82 $5378.78 Library Director $5028.17 $6145.55 Police Chief $5898.98 $7209.86 Deputy Police Chief $4881.17 $5965.87 Fire Chief $5786.61 $7072.53 Payroll/Benefits Administrator $3076.84 $3760.58 Legal Assistant $2977.58 $3639.26 Deputy City Clerk $3616.16 $4419.76 Senior Planner $4760.38 $5818.24 Planner 2 $4118.05 $5033.17 City Engineer $5098.40 $6231.38 Project/Civil Engineer $4707.95 $5754.16 Public Works Operations Manager $4545.02 $5555.02 Pool Manager $2838.53 $2469.31 Administrative Assistant $3061.85 $3742.27 -107- City Staffing Authorization in FTE (full -time equivalents) Authorization in FTE's Department /Division 1998 1999 2000 2001 2002 2003 2004 2005 2006 Change General Fund: Mayor/Council 1.0 1.0 0.0 0.4 0.4 0.4 0.4 0.0 0.0 0.0 City Manager 1.0 1.0 2.0 2.1 2.8 2.0 2.0 2.0 2.0 0.0 City Attorney 2.6 2.6 1.5 2.1 2.1 2.0 2.0 2.0 2.0 0.0 Development Service Department 9.4 8.9 8.5 7.5 7.8 7.9 8.0 8.0 10.0 2.0 Finance 8.8 9.01 9.0 9.11 2.3 2.31 2.3 2.31 3.6 1.3 Police Administration 4.0 4.0 5.0 6.0 5.0 4.1 -0.9 Police Operations 16.5 16.5 16.5 12.0 13.0 12.3 13.0 14.3 13.2 -1.1 City Clerk 1.4 1.4 1.4 2.1 2.1 2.0 2.5 2.5 2.3 -0.2 PEG TV Studio 0.0 0.3 0.3 0.3 0.3 0.0 -0.3 City Facilities 0.6 0.6 0.0 0.0 0.2 0.3 0.3 0.3 1.3 1.0 Public Restrooms 0.31 0.3 0.0 0.01 0.0 0.01 0.0 0.01 0.0 0.0 Subtotal -General Fund 41.6 41.3 38.9 39.3 35.0 34.4 36.8 36.7 38.5 1.8 Other Funds: Street 2.7 2.4 4.9 3.3 1.7 2.1 2.9 1.9 1.9 0.0 Fire /EMS 10.0 11.0 10.0 4.2 3.8 3.8 5.0 4.2 3.8 -0.4 EMS 8.81 8.2 8.21 10.5 8.81 7.7 -1.1 Parks Maintenance 4.0 3.5 3.7 2.0 2.5 3.3 4.0 3.3 3.3 0.0 Recreation 2.5 2.5 2.4 2.6 3.1 0.0 0.0 0.0 0.0 0.0 Pool 4.5 4.5 6.2 3.7 3.7 4.5 4.1 4.5 4.9 0.4 Public Works Administration 5.5 5.01 4.1 3.1 2.1 2.0 2.0 2.0 2.0 0.0 Public Works Engineering 9.0 7.5 6.0 5.0 4.5 6.5 5.3 8.3 7.3 -1.1 Library 8.1 7.6 8.5 7.31 8.3 8.31 9.7 10.41 10.1 -0.3 Capital Improvement 0.4 0.4 0.4 0.0 -0.4 Water /Sewer: Utility Billing 5.5 5.5 5.5 5.5 4.6 -0.9 Water Distribution 6.01 5.7 7.5 4.0 6.0 6.1 5.8 5.8 5.8 0.0 Water Quality 4.3 4.3 4.0 0.8 1.0 1.0 1.0 1.0 1.0 0.0 Wastewater Collection 2.5 2.3 1.5 1.71 1.7 2.51 3.3 2.51 3.2 0.7 Wastewater Treatment 3.5 3.5 3.5 3.3 3.3 3.6 4.6 3.3 3.3 0.0 Biosolids 2.5 2.5 2.5 2.3 2.3 2.3 2.3 2.3 2.3 0.0 Facilities Locates 1.5 0.5 0.0 0.0 0.0 0.0 0.0 Water Resources 0.9 1.0 1.0 1.0 1.0 1.01 0.0 Stormwater 2.5 2.3 1.5 1.7 3.3 3.8 4.5 3.4 2.8 -0.7 Equipment Rental 2.3 2.3 2.01 2.Ul I.bj I.bj 1.5 1.5 2.5 1.0 Totaisl 111.5 108.21 107.11 97.21 99.01 100.51 110.0 106.7 105.7 70 'This includes an average of seasonal employees -108- Glossary ACCOUNT GROUPS: Accounting entities used to establish control over accountability for the government's general fixed assets and the unmatured principal of its general long -term debt, including special assessment debt for which the government is obligated in some manner. The most common groups are called, General Long Term Debt Accounting Group (GLTDAG) and, General Fixed Assets Accounting Group (GFAAF). ACCOUNTING SYSTEM: The total set of records and procedures that are used to record, classify, and report information on the financial status and operations of an entity. ACCOUNTS PAYABLE: A short-term liability account reflecting amounts owed to private persons or organizations for goods and services received by a government. ACCOUNTS RECEIVABLE: An asset account reflecting amounts due from private persons or organizations for goods and services furnished by a government (but not including amounts due from other funds or other governments). ACCRUAL BASIS OF ACCOUNTING: The method of accounting under which revenues are recorded when they are earned (whether or not cash is received (whether cash disbursements are made at that time or not). ACCUMULATED DEPRECIATION: A contra -asset account used to report the accumulation of periodic credits to reflect the expiration of the estimated service life of fixed accounts. AD VALOREM TAXES: A tax levied on the assessed value of real property. AGENCY FUND: A fund used to account for assets held by a government as an agent for individuals, private organizations, other governments and /or other funds. ALLOCATION: To set aside or designate funds for specific purposes. An allocation does not authorize the expenditure of funds. AMORTIZATION: (1) The portion of the cost of a limited life or intangible asset charged as an expense during a particular period. (2) The reduction of debt by regular payments of principal and interest sufficient to retire the debt by maturity. ANNUAL DEBT SERVICE: The amount required to be paid in a calendar year for (1) interest on all Parity Bonds then outstanding; (2) principal of all Parity Bonds then outstanding, but excluding any outstanding Term Bonds, and (3) payments into any Sinking Fund Account for the amortization of outstanding Parity Bonds divided by the number of calendar years to the last maturity or mandatory redemption date thereof. ANNUAL FINANCIAL REPORT: The official annual report of a government. It includes (a) the five combined financial statements in the combined statements - overview and their related notes and (b) combined statements by fund type and individual fund and account group financial statements prepared in conformity with GAAP and organized into a financial reporting pyramid. It also includes supporting schedules necessary to _109- Glossary demonstrate compliance with finance - regulated legal and contractual provisions, required supplementary information, extensive introductory material and a detailed statistical section APPROPRIATION: An authorization made by the City Council, which permits officials to incur obligations against and to make expenditures of governmental resources. Appropriations are usually made for fixed amounts and are typically granted for a one -year period. APPROPRIATIONS ORDINANCE: The official enactment by the City Council establishing the legal authority for City officials to obligate and expend resources. ASSESSED VALUATION: The estimated value placed upon real and personal property by the Jefferson County Assessor as the basis for levying property taxes. ASSETS: Property owned by a government, which has monetary value. AUDIT: A systematic examination of resource utilization concluding in a written report. It is a test of management's internal accounting controls and is intended to: * ascertain whether financial statements fairly present financial position and result of operations; * test whether transactions have been legally performed; * identify areas for possible improvements in accounting practices and procedures, * ascertain whether transactions have been recorded accurately and consistently; and * ascertain the stewardship of officials responsible for governmental resources. AUDITOR'S REPORT: In the context of a financial audit, a statement by the auditor describing the scope of the audit and the auditing standards applied in the examination,_and setting forth the auditor's opinion on the fairness of presentation of the financial information in conformity with generally accepted accounting practices or some other comprehensive basis system of accounting. BALANCE SHEET: A statement presenting the financial position of an entity by disclosing the value of its assets, liabilities, and equities as of a specified date. BARS: The State of Washington prescribed Budgeting, Accounting Reporting System Manual required for all governmental entities in the state of Washington. BASE BUDGET: Ongoing expense for personnel, contractual services, and the replacement of supplies and equipment required to maintain service levels previously authorized by the City Council. BASIC FINANCIAL STATEMENTS: Those financial statements, including notes thereto, necessary for the fair presentation of the financial position and results of operations of an entity in conformity with GAAP. The basic financial statements include a balance sheet, an "all- inclusive" operating statement, a budget comparison statement (for all government funds for _110- Glossary which annual appropriated budgets are adopted), and a statement of changes in financial position (for proprietary funds, pension trust funds and non - expendable trust funds). BASIS OF ACCOUNTING: A term used to refer to when revenues, expenditures, expenses and transfers - and the related assets and liabilities - are recognized in the accounts and reported in the financial statements. Specifically, it relates to the timing of the measurements made, regardless of the nature of the measurement, on either the cash or accrual method. BOND: (Debt Instrument) A written promise to pay (debt) a specified sum of money (called principal or face value) at a specified future date (called the maturity date) along with periodic interest paid at a specified percentage of the principal (interest rate). Bonds are typically used for long -term debt to pay for specific capital expenditures. BOND ANTICIPATION NOTES: (BANS) Short- term interest - bearing notes issued in anticipation of bonds to be issued at a later date. The notes are retired from proceeds of the bond issue from which they are related. BOND REGISTRAR: The fiscal agency of the State of Washington in either Seattle, Washington, or New York, New York, for the purposes of registering and authenticating the bonds, maintaining the bonds, maintaining the bond register, effecting transfer of ownership of the bonds and paying interest on the principal of (and any premium pursuant to call on) the bonds. BUDGET (Operating): A plan of financial operation embodying an estimate of proposed expenditures for a given period (typically a fiscal year) and the proposed means of financing them (revenue estimates). The term is also sometimes used to denote the officially approved expenditure ceilings under which the City and its departments operate. BUDGET CALENDAR: The schedule of key dates or milestones, which the City follows in the preparation and adoption of the budget. BUDGET DOCUMENT: The official written statement prepared by the Finance Department and supporting staff for the city manager to present the proposed budget to the City Comic CAPITAL ASSETS: Assets of significant value and having a useful life of several years. Capital assets are also called fixed assets. CAPITAL BUDGET: A plan of proposed capital expenditures and the means of financing them. The capital budget may be enacted as part of the complete annual budget including both operating and capital outlays. The capital budget is based on the Capital Improvement Plan (CIP). CAPITAL IMPROVEMENT PROGRAM: A plan of proposed capital expenditures to be incurred each year over a period of six future years setting forth each capital project, identifying the expected beginning and ending date for each project, the amount to be expended in each year, and the method of financing those expenditures. CAPITAL PROGRAM: A plan for capital expenditures to be incurred each year over a fixed period of years to meet - III- Glossary capital needs arising from the long -term work program or otherwise. It sets forth each project or other contemplated expenditure in which the government is to have a part and specifies the full resources estimated to be available to finance the projected public facilities. CAPITAL OUTLAY: Expenditures, which result in the acquisition of or additions to fixed assets. Examples include land, buildings, machinery and equipment, and construction projects. CAPITAL PROJECTS: Projects, which purchase or construct capital assets. Typically, a capital project encompasses a purchase of land or construction of a building or facility, with a life expectancy of more than 10 years. CASH BASIS: The method of accounting under which revenues are recorded when received in cash and expenditures are recorded when paid. CASH FLOW BUDGET: (CASH BUDGET) A projection of the cash receipts and disbursements anticipated during a given time period. CDBG: Community Development Block Grants - grant funds administered through Department of Community Trade and Economic Development (CTED) of the State of Washington. CENTENNIAL CLEAN WATER PROGRAM: (CCWP) In 1986, legislation was passed which provides grants to public entities for financing water pollution control activities and facilities to protect surface and underground water from pollution. In addition, a state revolving loan program was established to provide loans or combinations of grants /loans to finance public facilities. CERTIFICATE OF DEPOSIT: A negotiable or non - negotiable receipt for monies deposited in a bank or other financial institution for a specified period for a specified rate of interest. COLA: Cost of Living Allowance. COMMUNITY PARK: Those parks so designated in the City of Port Townsend Parks and Recreation Plan. CONCURRENT OR CONCURRENCY: The improvements that are in place at the time the impacts of development occur, or that the necessary financial commitments are in place. Public facilities and services shall be adequate to serve the development at the time the development is available for occupancy and use without decreasing current service levels below locally established minimum standards. CONTINGENCY: A budgetary reserve set -aside for emergencies or unforeseen expenditures not otherwise budgeted for. COST ACCOUNTING: Accounting that assembles and records all costs incurred to carry out a particular activity or to deliver a particular service. COUNCILMANIC BONDS: Councilmanic bonds refer to bonds issued with the approval of the Council, as opposed to voted bonds that must be approved by vote of the public. Councilmanic bonds must not exceed 1.50 percent of the assessed valuation, and voted bonds 2.50 percent. CPI: Consumer Price Index is a measure of the change in prices over time for a -112- Glossary fixed market basket of goods and services. DEBT: An obligation resulting from the borrowing of money or from the purchase of goods and services. Debts of governments include bonds, time warrants and notes. DEBT LIMITS: The maximum amount of gross or net debt, which is legally permitted. DEBT SERVICE: Payment of interest and repayment of principal to holders of the City's debt instruments. DEBT SERVICE FUND: A fund established to account for the accumulation of resources for, and the payment of, general long- term debt principal and interest. DEFICIT: (1) The excess of an entity's liabilities over its assets (See Fund Balances). (2) The excess of expenditures or expenses over revenues during a single accounting period. DELINQUENT TAXES: Taxes remaining unpaid on and after the date to which a penalty for nonpayment is attached. Even though the penalty may be subsequently waived and a portion of the taxes may be abated or canceled, the unpaid balances continue to be delinquent taxes until abated, canceled, paid or converted into tax liens. DEMAND DEPOSIT: A bank deposit of monies that are payable by the bank upon demand to the depositor. DEPRECIATION: (1) Expiration in the service life of capital assets attributable to wear and tear, deterioration, action of the physical elements, inadequacy or obsolescence. (2) That portion of the cost of a capital asset, which is charged as an expense during a particular period. DEVELOPMENT ACTIVITY: Any construction or expansion of a building, structure, or use, any change in use of a building or structure, or any change in the use of land, that creates additional demand and need for public facilities. DOUBLE BUDGETING: The result of having funds or departments within a government purchase services from one another rather than from outside vendors. When internal purchasing occurs, both funds must budget the expenditure (one to buy the service and the other to add the resources to its budget so they have something to sell). This type of transaction results in inflated budget values because the same expenditure dollar is budgeted twice: once in each fund's budget. The revenue side of both funds is similarly inflated. DUE FROM OTHER FUNDS: An asset account used to indicate amounts owed to a particular fund by another fund for goods or services rendered. This account includes only short-term obligations on open account, not interfund loans. ENCUMBRANCES: Obligations in the form of purchase orders, contracts or salary commitments that are chargeable to an appropriation and for which a part of the appropriation is reserved. They cease to be encumbrances when paid or when an actual liability is set up. ENDING FUND BALANCE: The cash balance remaining at the end of the fiscal year available for appropriation in future years. -113- Glossary ENTERPRISE FUND: Separate financial accounting used for government operations that are financed and operate in a manner similar to business enterprises, and for which preparation of an income statement is desirable. EQUIPMENT RENTAL: The Equipment Rental Fund operates as a self - sufficient motor and equipment pool. Customer departments pay for the equipment used through charges billed monthly. These charges include a form of depreciation, which is accumulated as a sinking fund for future asset replacement, a factor for maintenance of the equipment, and charges for fuel (if applicable). EXPENDITURES: Where accounts are kept on the accrual or modified accrual basis of accounting, the cost of goods received or services rendered whether cash payments have been made or not. Where accounts are kept on a cash basis, expenditures are recognized only when the cash payments for the above purposes are made. FEDERAL AID URBAN SYSTEM: (FADS) Provides funds for the construction, reconstruction, and improvement of urban streets and roads. A local match of 16.6 percent is required. FEE IN LIEU OF: (FILO) Charges are contributions made by developers toward future improvements of City facilities resulting from the additional demand on the City's facilities generated from the development. FISCAL YEAR: A twelve (12) month period designated as the operating year by an entity. For Port Townsend, the fiscal year is the same as the calendar year (also called budget year). FIXED ASSETS: Long- lived tangible assets obtained or controlled as a result of past transactions, events or circumstances. Fixed assets include buildings, equipment, improvements other than buildings and land. FLOAT: The amount of money represented by warrants outstanding and in the process of collection. FULL FAITH AND CREDIT: A pledge of the general taxing power of a government to repay debt obligations (typically used in reference to bonds). FTE: Full -time equivalent employee. FUND: An independent fiscal and accounting entity with a self - balancing set of accounts recording cash and /or other resources together with all related liabilities, obligations, reserves, and equities which are segregated for the purpose of carrying on specific activities or attaining certain objectives. FUND BALANCE: The excess of an entity's assets over its liabilities. A negative fund balance is sometimes called a deficit. GAAFR: Governmental Accounting, Auditing and Financial Reporting. The "blue book" published by the Government Finance Officers Association to provide guidance for the application of accounting principles for governments. GAAP: Generally Accepted Accounting Principles are standards used for accounting and reporting used for both private industry and governments. -114- Glossary GASB: Government Accounting Standards Board, established in 1985, to regulate the rules and standards for all governmental units. GENERAL FIXED ASSETS: Capital assets that are not a part of any fund, but of the government unit as a whole. Most often these assets arise from the expenditure of the financial resources of governmental funds. GENERAL FUND: The fund supported by taxes, fees and other revenues that may be used for any lawful purpose. GENERAL OBLIGATION BONDS: Bonds for which the full faith and credit of the insuring government are pledged for payment. GOALS: The objective of specific tasks and endeavors. GRANT: A contribution of assets (usually cash) by one governmental unit or other organization to another. Typically, these contributions are made to local governments from the State and Federal governments. Grants are usually made for specified purposes. GUARANTY FUND: A fund established by a bond issuer, which is pledged, as security for the payment of one or more bond issues. Normally used for local improvement districts (LID). IAC: Interagency Committee for Outdoor Recreation. IMPACT FEES: A fee assessed on new development that creates additional demand and need for public facilities. INFRASTRUCTURE: Assets that are the underlying foundation especially the basic installations and facilities on which the continuance and growth of a jurisdiction depends (streets, roads, sewer, and water systems). INTERFUND PAYMENTS: Expenditures made to other funds for services rendered. This category includes interfund repairs and maintenance. INTERGOVERNMENTAL COSTS: Costs or expenses paid from one government to another government for services. These costs include but are not limited to such things as: dispatch and jail services, animal control services, audit and voter costs. INTERGOVERNMENTAL SERVICES: Intergovernmental purchases of those specialized services typically performed by local governments. INTERNAL CONTROL: A plan of organization for purchasing, accounting, and other financial activities, which, among other things, provides that: * The duties of employees are subdivided so that no single employee handles financial action from beginning to end, * Proper authorization from specific responsible officials are obtained before key steps in the processing of a transaction are completed. * Records and procedures are arranged appropriately to facilitate effective control. INTERNAL SERVICE FUND: Funds used to account for the financing of goods or services provided by one department or agency to other departments or agencies of the City, or - 115 - Glossary to other governments, on a cost - reimbursement basis. INVESTMENT: Securities and real estate purchased and held for the production of income in the form of interest, dividends, rentals and base payments. IPD: Implicit Price Deflator. LATECOMER FEES: Fees paid by developers or future service users for their share of past improvements financed by others. LEASING: A financial technique whereby ownership of the projector equipment remains with the financing entity, and where title may or may not transfer to the City at the end of the lease. LEOFF: Law Enforcement Officers and Firefighters Retirement System provided in the State of Washington. LEVY: (1) To impose taxes, special assessments or service charges for the support of government activities. (2) The total amount of taxes, special assessments or service charges imposed by a government. LEVY LID: A statutory restriction on the annual increase in the amount of property tax a given public jurisdiction can assess on regular or excess levies. LIABILITY: Debt or other legal obligations arising out of transactions in the past that must be liquidated, renewed or refunded at some future date. LID: Local Improvement District for special assessments made against certain properties to defray part or all of the cost of a specific improvement or service deemed to primarily benefit those properties. MATURITIES: The dates on which the principal or stated values of investments or debt obligations mature and may be reclaimed. MILL: The property tax rate, which is based on the valuation of property. A tax rate of one mill produces one dollar of taxes on each $1,000 of property valuation. MITIGATION FEES: Contributions made by developers toward future improvements of city facilities resulting from the additional demand on the city's facilities generated from the development. MODIFIED ACCRUAL BASIS: The basis of accounting under which expenditures, other than accrued interest on general long -term debt, are recorded at the time liabilities are incurred and revenues are recorded when received in cash except for material and /or available revenues, which should be accrued to reflect properly the taxes levied and revenue earned. NET REVENUE: The revenue of the system less the cost of maintenance and operation of the system. NOTES TO THE FINANCIAL STATEMENTS: The disclosures required for a fair presentation of the financial statements of government in conformity with GAAP and not included on the face of the financial statements themselves. The notes to the financial part of the GPFS /CUFS. OBJECT: As used in expenditure classification, this term applies to the -116- Glossary type of item purchased or the service obtained (as distinguished from the results obtained from expenditures). OPERATING FUNDS: Resources derived from recurring revenue sources used to finance ongoing operating expenditures and pay -as- you -go capital proj ects. OPERATING TRANSFER: Routine and /or recurring transfers of assets between funds. ORDINANCE: A statute or regulation enacted by City Council. OTHER SERVICES AND CHARGES: A basic classification for services, other than personnel services, which are needed by the City. This item includes professional services, communication, travel, advertising, training, dues and subscriptions, printing, equipment rental and costs (ER &R), insurance, public utility services, repairs and maintenance. PARITY BOND: Any and all water and sewer revenue bonds of the City the payment of which, both principal and interest, constitutes a lien and charge upon the revenue of the system and upon assessments equal in rank with the lien and charge on such revenue of the system and assessments for payments required to pay and secure the payment of the bonds. PERS: Public Employees Retirement System provided for, other than Police and Fire, by the State of Washington. PERSONNEL BENEFITS: Those benefits paid by the City as part of the conditions of employment. Examples include insurance & retirement benefits. PERSONNEL COSTS: Costs that include all salaries, wages, and benefits for all part-time, full -time, seasonal and temporary employee costs. PROCLAMATION: An official act by the Mayor or Executive Officer made through a public forum. PROGRAM: A specific and distinguishable unit of work or service performed. PROGRAM ENHANCEMENT: Programs, activities or personnel requested to improve or add to the current baseline services. PROGRAM MEASURES: A unit of standard used for the quantitative comparison in the manner of functioning to capacity or quantity as determined. PROGRAM REVENUE: These are revenues that are produced as a result of an activity of a program and are subject to quantity of services provided to the public or governmental units (i.e. permits, charges for fire services, recreational activities), or revenues dedicated to a specific use (i.e. grants taxes or debt funds). PROPRIETARY FUND TYPES: Sometimes referred to as income determination or commercial -type funds, the classification used to account for a government's ongoing organizations and activities that are similar to those often found in the private sector. The GAAP used are generally those applicable to similar businesses in the private sector and the measurement focus is on determination of net income, financial position and changes in financial position. -117- Glossary PUBLIC FACILITIES: The capital owned or operated by the City or other governmental entities. PUBLIC WORKS TRUST FUND: (PWTF) Is a low- interest revolving loan fund which helps local governments finance critical public works needs. To be eligible for trust fund financing, the applicant must be a local government entity, with a long -term plan for financing public works needs. If the applicant is a city or county, it must be imposing the optional one - quarter percent real estate excise tax for capital purposes. Eligible projects include streets and roads, bridges, storm sewers, sanitary sewers, and water systems. Loans will only be made for the purpose of repair, replacement, reconstruction, or improvement of existing eligible public works systems to meet current standards and to adequately serve the needs of the existing populations. New capital improvement projects are not eligible. The maximum loan amount has been two million with a minimum local match of ten percent. Interest rates vary from one to three percent, depending on the match. RCW: Revised Code of Washington. Laws of the State of Washington enacted by the State Legislature. BEET: (Real Estate Excise Tax) A tax upon the sale of real property from one person or company to another. RESERVE: An account used to indicate that a portion of fund equity is legally restricted for a specific purpose. RESOLUTION: A formal statement of a decision or expression of an opinion of the City Council. RESOURCES: Total dollars available for appropriations including estimated revenues, fund transfers, and beginning fund balances. RETAINED EARNINGS: An equity account reflecting the accumulated earnings of the City's proprietary funds. REVENUE: income received by the City in support of a program of services to the community. It includes such items as property taxes, fees, user charges, grants, fines and forfeits, interest income and miscellaneous revenue. REVENUE BONDS: Bond issued pledging future revenues, usually water, sewer or drainage charges, to cover debt payments. REVENUE ESTIMATE: A formal estimate of how much revenue will be earned from a specific revenue source for some future period, typically, a future fiscal year. STP: Surface Transportation Program. STPE: Surface Transportation Program - Enhancement. STPH: Surface Transportation Program - Hazard Elimination STPUS: Surface Transportation Program - Urban Small. SALARIES AND WAGES: Amounts paid for personal services rendered by employees in accordance with rates, hours, terms and conditions authorized by law or stated in employment contracts. SERVICE MEASURES: Specific quantitative measures of work performed within an activity or program (e.g., total - 118 - Glossary miles of street cleaned). Also, a specific quantitative measure of results obtained through a program or activity (e.g., reduced incidence of vandalism due to new street lighting program). SINGLE AUDIT: An audit performed in accordance with the Single Audit Act of 1984 and office of Management and Budget (OMB) Circular A -128, Audits of State and Local Governments. The Single Audit Act allows or requires governments (depending on the amount of federal assistance received) to have one audit performed to meet the needs of all federal grantor agencies. SINKING FUND ACCOUNT: An account created in the bond fund to amortize the principal of term bonds. SPECIAL ASSESSMENT: A compulsory levy made against certain properties from earnings of enterprise funds. In addition to a pledge of revenues, such bonds sometimes contain a mortgage on the enterprise fund's property. SPECIAL REVENUE FUND: A fund used to account for the proceeds of specific revenue sources that are legally restricted to expenditure or specified purposes. SUPPLEMENTAL APPROPRIATION: An appropriation approved by the Council after the initial budget appropriation. SUPPLIES: A basic classification of expenditures for articles and commodities purchased for consumption or resale. Examples include office and operating supplies, fuel, power, water, gas, inventory or resale items, and small tools and equipment. SURETY BOND: Any letter of credit, insurance policy, surety bond or other equivalent credit facility or any combination thereof issued to the City to satisfy all or part of the amount required to be maintained in the Reserve Account to make such payments of principal and interest as the same become due at maturity or on any mandatory redemption date. TIA: Transportation Improvement Account. TAX: Charge levied by a government to finance services performed for the common benefit. TAX ANTICIPATION NOTES: (TANS) Notes issued in anticipation of taxes, which are retired usually from taxes collected (typically by school by school districts). TAX LEVY ORDINANCE: An ordinance through which taxes are levied. TAX RATE LIMIT: The maximum legal rate at which a municipality may levy a tax. The limit may apply to taxes raised for a particular purpose or for general purposes. TERM BONDS: Any parity bonds designated by the Council as "term bonds" pursuant to an ordinance which authorizes the issuance of parity bonds and provides for mandatory payments into a sinking fund account established for the term bonds so designated and provides for mandatory redemption of such term bonds from such sinking fund account. -119- Glossary THIRTEENTH MONTH: This is the month (January) following the end of the fiscal year in which prior expenditures shall be charged against the prior year's budget. This is a budgetary provision in state law (35A.33.150 RCW). It requires cities to charge the previous budget for items purchased before year- end, but not yet invoiced to the city up to the twentieth day in January. This provision is similar to accounts payable accruals in the private business community. TRANSPORTATION IMPROVEMENT ACCOUNT (TIA): Provides funding for transportation projects through two urban programs. Urban projects must be attributable to congestion caused by economic growth. They must be consistent with state, regional and local selection processes. The TIB requires multi- agency planning and coordination and public /private cooperation to further the goal of achieving a balanced transportation system in Washington State. TRANSPORTATION IMPROVEMENT BOARD (TIB): The purpose of the TIB is to administer funding for local governments for transportation projects. This is accomplished through the Transportation Improvement Account Program and the Urban Arterial Trust Account Program. Revenues are from the state fuel tax, local matching funds, and private sector contributions. TRUST FUND: Funds used to account for assets held by a government in a trustee capacity for individuals, private organizations, and /or other funds. DATA: Urban Arterial Trust Account. UTILITY LOCAL IMPROVEMENT DISTRICTS: (ULID) Created only for improvement to sewer, water, and other utilities and differs from a LID in that all assessment revenues must be pledged for payment of debt service of bonds issued to finance the improvements. WAC: Washington Administrative Code. WARRANT: An order drawn by a municipal officer(s) directing the treasurer of the municipality to pay a specified amount to the bearer, either after the current or some future date. WCIA: Washington Cities Insurance Authority is a group of cities across the state that provides pooled and self - insurance services for liability, auto, property, and all other insurance coverage. YIELD: The rate earned on an investment based on the price paid for the investment, the interest earned during the period held, and the selling price or redemption value of the investment. -120-