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HomeMy WebLinkAbout2009 Final BudgetCity of Port Townsend Final Budget 2009 Table of Contents City of Port Townsend Final Budget 2009 Page City Manager Budget Message.........................................................................................................................i City Officials...................................................................................................................................................1 Citizen Advisory Boards, Commissions, and Committees..............................................................................2 Fund Summary ...............................................................................................................................................4 Overview.........................................................................................................................................................6 Budget Policies................................................................................................................................................6 General Fund Summary.................................................................................................................................14 General Fund Revenues and Expenditures ...................................................................................................15 General Fund Departmental Budgets Legislative – City Council..........................................................................................................................22 City Manager..............................................................................................................................................24 City Attorney..............................................................................................................................................27 City Clerk...................................................................................................................................................30 Development Services Department ...........................................................................................................33 Planning Department..................................................................................................................................37 Finance Department....................................................................................................................................39 Police Department......................................................................................................................................43 Facilities Maintenance................................................................................................................................46 Non-Departmental......................................................................................................................................48 PEG Access TV Studio ............................................................................................................................50 Grants Management ..................................................................................................................................52 Fund Equity Transactions...........................................................................................................................54 Special Revenue Funds Drug Enforcement Fund.......................................................................................................................56, 60 Contingency Fund................................................................................................................................56, 61 Community Development Block Grant Fund.......................................................................................56, 71 Lodging Tax Fund................................................................................................................................56, 72 System Development Charge Fund......................................................................................................57, 73 Community Services Fund (Service Providers, Parks, Recreation and Pool Departments).................58, 80 Street Fund...........................................................................................................................................59, 62 Fire and EMS Fund..............................................................................................................................58, 74 Library Fund...............................................................................................................................................66 Public Works Administration and Engineering Fund...........................................................................58, 75 Debt Service Fund General Government Debt Service.............................................................................................................83 Utility Debt Service....................................................................................................................................85 Legal Statutory Debt Margin......................................................................................................................91 Capital Project Funds Capital Improvement Fund.........................................................................................................................92 Utility Construction Fund...........................................................................................................................93 Enterprise Funds & Trust Funds Water/Sewer Utility Fund...........................................................................................................................96 Stormwater Utility Fund...........................................................................................................................107 Transmission Line Replacement Fund.....................................................................................................109 Equipment Rental Fund............................................................................................................................111 Memorial Fund.........................................................................................................................................113 Firemen’s Pension and Relief Fund..........................................................................................................115 Table of Contents City of Port Townsend Final Budget 2009 Golf Course Fund........................................................................................................................................117 NW Maritime Center Fund..........................................................................................................................119 Appendices City Property Tax Levy Rate History..........................................................................................................122 Property Tax Levy Rate by District 2009....................................................................................................123 Personnel Services.......................................................................................................................................124 Total Staffing Authorized FTE (Full Time Equivalences) Table................................................................127 2009 Budget Ordinance No. 2995...............................................................................................................129 2009 Property Tax Levy Ordinance No. 2991.............................................................................................131 Glossary.......................................................................................................................................................133 City Officials COUNCILMEMBERS Position #1 Michelle Sandoval Term expiring December 2009 Position #2 Catharine Robinson Term expiring December 2009 Position #3 Laurie Medlicott Term expiring December 2011 Position #4 George Randels Term expiring December 2011 Position #5 Mark Welch Term expiring December 2009 Position #6 David King Term expiring December 2011 Position # 7 Brent Butler Term expiring December 2011 CITY MANAGER David Timmons DEPARTMENT DIRECTORS Public Works Director Kenneth Clow Development Services Director Rick Sepler Finance Director Michael Legarsky Police Chief Conner Daily Library Direector Theresa Percy City Attorney John Watts City Clerk Pamela Kolacy City of Port Townsend1 Citizens Advisory City of Port Townsend Citizen Advisory Boards, Commissions, Task Forces, Committees and Subcommittees (December 2, 2008) LIBRARY ADVISORY BOARD (5) DESIGN REVIEW ADVISORY COMMITTEE (5) CIVIL SERVICE COMMISSION (3) Bill Maxwell VACANT Ronald V. Kosec Weston Eng Gary Kennedy Gail A. Ryan Caitlin Harrison Amy Dahlberg VACANT Eileen Price Ian Keith Kate Schumann Guy Hupy HISTORIC PRESERVATION COMMITTEE (5-7) TEARDOWN AND BULK/SCALE TASK FORCE Gee Heckscher Michelle Sandoval Michael Colbert George Randels James Manier George Unterseher Charles Paul Bill LeMaster Richard Berg 1 HPC Representative (TBD) Marsha Moratti Jane Souzon Rosalind Russell Bob Little UPTOWN DESIGN RELATED STRATEGIES COMMITTEE ARTS COMMISSION (up to 9) LODGING TAX ADVISORY COMMITTEE (11 voting members) Stanley Rubin Laurie Medlicott (elected official) Brent Butler Linda Davis Okazaki Sherri Hanke (at large) Julian Ray Kristine Morris Robert Little (at large) Charles Paul VACANT Keven Elliff (recipient) Richard Berg Clifford Wood Dave Robison (recipient) Mike Kenna Frank Vane Sue McIntire (recipient) Malcolm Dorn Nancy Rody Steve Shively (recipient)) Cappy Mathias Sherry Kack Jim Pivarnik (collector) Jeannie Moore Counsel Langley David Elling (collector) Susan or Mike Webb Tim Stover (recipient) Rick Sepler (staff) John Eissinger (collector) John Owens (facilitator) Rod Davis, COC (ex-officio) Mark Cole,Main St. (ex-officio) NON-MOTORIZED TRANSPORTATION ADVISORY BOARD (9) UPTOWN PARKING STRATEGIES COMMITTEE PEDESTRIAN & BICYCLE SAFETY STAKEHOLDERS COMMITTEE Chauncey Tudhope-Locklear Milt Fukuda Troy Surber (PTPD) Owen Fairbank David King Mary Heather Ames (Public Wks) Bly Windstorm Julian Ray Keppie Keplinger (EJFR) Jane Whicher Ian Keith Julia Danskin (Public Health) Peter Lauritzen Bob Alei David McCulloch (Bicycle Assoc) Andrew Reding Sally Chapin Jane Whicher (NMTAB) Pat Teal Pat Scott Linda Pfafman (Sheriff's Dept) Chris R. Jones Ken Clow/Dave Peterson/Rick Sepler Port Townsend School Dist. Jolly Wahlstrom City of Port Townsend2 Citizens Advisory PLANNING COMMISSION (7-11) HOUSING ACTION PLAN NETWORK COMMITTEE PEG ACCESS COORDINATING COMMITTEE (8) VACANT David Rymph John Watts VACANT L. Katherine Baril David King Bill LeMaster Al Cairns Mark Welch Monica Mick-Hager Sandy Hershelman Julian Ray George Unterseher Dan McMilan Theresa Percy Kristen Nelson Susan Miller Tom Opstad Jerauld Fry Kees Kolff Pam Roberts Julian Ray Michael Rody Patricia Perreault Steven Emery Phil Johnson Kitti deLong (Producers Rep) Michelle Sandoval Judy Surber (staff) SHORELINE AD-HOC COMMITTEE SIGN CODE REVIEW COMMITTEE ALTERNATIVE ELECTRIC MANAGEMENT COMMITTEE Jeffree Stewart (DOE) Michelle Sandoval George Randels Margie Schirato (WDFW) VACANT Larry Crockett Sam Gibboney Brian Murray BOCC appointment Richard Berg Sheila Westerman Kees Kolff David King Ken Radon Andrew Reding Monica Mick-Hager J. Briar Kolp Crispin Hollinshead Owen Fairbank Kim Sands Jeff Randall Judy Surber (staff) Mark Dumond Communications/Fiberoptics appointment Coila Sheard Jerry Spieckerman Jim Manier Bill Wise Albert Mendez Tribes appointment Marsha Moratti Judy Surber (staff) Malcolm Dorn Lois Sherwood Suzy Carroll CLIMATE ACTION COMMITTEE Dana Roberts Kees Kolff Josh Bryant Barbara Nightingale Nora Burnfield Denise Pranger Taylor Beard David Turissini Tim Behrenfeld Scott Walker Tom Opstad Stanley Willard Larry Crockett Pete Rabb Kristin Marshall Mark Welch Jim Fritz John Austin City of Port Townsend3 City of Port Townsend Estimated Beginning Fund Balance Budget Overview Final 2009 1/01/20091/01/2010 Estimated20092009Beginning FundEstimatedEstimatedFund FundsBalanceRevenuesAppropriationBalance Operating Funds General Fund202,214$ 7,701,581$ 7,392,837$ 510,957$ Public Works Admin & Engineering Fund3,176 1,269,096 1,209,001 63,271 Library Fund- 953,726 897,489 56,237 Community Services Fund4,014 1,179,060 1,163,405 19,669 Fire & EMS Services Fund3,442 1,215,888 1,215,888 3,442 Local Improvement District #135 - - 35 Local Improvement District #220 - - 20 Drug Enforcement661 2 - 663 Contingency Fund71,184 27,136 - 98,320 Street Fund186,902 769,153 945,894 10,162 Lodging Tax Fund133,039 359,991 444,583 48,447 Community Development Block Grant Fund95,101 12,853 50,000 57,954 Water Sewer Fund3,255,663 4,414,288 6,839,499 830,452 * Stormwater Fund273,727 548,000 785,981 35,747 Equipment Rental Fund763,178 1,083,906 913,056 934,028 Firemen's Pension Fund323,757 82,713 78,702 327,768 Operating Fund Subtotals5,316,114$ 19,617,393$ 21,936,334$ 2,997,172$ Capital, Debt, & Trust Funds Capital Improvement Fund48,352 18,333,300 16,658,036 1,723,616 2008 Bond Construction Fund6,837,904 136,758 6,779,000 195,662 ** System Development Charges Fund321,380 172,641 490,000 4,022 Transmission Line Replacement Fund3,470,361 233,174 158,000 3,545,535 G.O. Debt Service Fund11,342 993,212 993,871 10,683 78 Water Sewer Revenue Bond Fund48,231 26,447 23,750 50,928 92/98 Water Sewer Revenue Bond Res. Fund470,737 18,829 - 489,566 92 Water Sewer Revenue Bond Red. Fund61,746 601,672 600,820 62,599 Utility Construction Fund1,171,594 2,225,148 3,315,950 80,792 NW Maritime Center Agency Fund3 136,504 136,500 7 Golf Course Fund421 145,013 137,500 7,934 Memorial Fund3,851 154 3,000 1,005 Capital, Debt, & Trust Fund Subtotals12,445,923$ 23,022,852$ 29,296,427$ 6,172,348$ Grand Totals17,762,037$ 42,640,245$51,232,761$ 9,169,520$ * = increase in spending mostly due to transfers to the utility construction fund, and increase in capital outlay. ** = non-appropriated fund for bond capital improvements. City of Port Townsend4 Comprehensive Budget-All Funds$7,392,837 Utility Construction Fund, $3,315,950 Capital Improvement Fund, $16,658,036 General Fund Transfer - Community Services, $1,073,060 General Fund Transfer - Fire/EMS Services, $823,635 General Fund Transfer - Debt Service, $171,000 General Fund Transfer - Interfund Loan Repayments, $67,505 System Development Charges Fund, $490,000 Transmission Line Replacement Fund, $158,000 G.O. Debt Service Fund, $993,871 78 Water Sewer Revenue Bond Fund, $23,750 92 Water Sewer Revenue Bond Red. Fund, $600,820 Community Development Block Grant Fund, $50,000 Public Works Admin & Engineering Fund, $1,209,001 Lodging Tax Fund, $444,583 Street Fund, $945,894 Fire & EMS Services Fund, $1,215,888 Community Services Fund, $1,163,405 Library Fund, $897,489 Firemen's Pension Fund, $78,702 Equipment Rental Fund, $913,056 Stormwater Fund, $785,981 Water Sewer Fund, $6,839,499 Golf Course Fund, $137,500 Memorial Fund, $3,000 General Fund, $5,257,637 NW Maritime Center Agency Fund, $136,500 City of Port Townsend 5 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, sewer and storm services, garbage and 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 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 Code of Washington (RCW) 36.33. 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 and November. 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 City of Port Townsend6 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. City of Port Townsend7 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 City of Port Townsend8 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 27 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: City of Port Townsend9 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. Typically, 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. In 2008, voters approved a property tax levy lid lift for the Port Townsend library. The library lid lift is $0.75 per $1,000 of assessed valuation. This lift increases Port Townsend’s maximum levy amount from the current $1.54 to $2.31 per $1,000 of assessed valuation. The city council voted to phase in the new levy amount over a three year period to minimize the impact on tax payers. The new $0.75 levy is restricted to library purposes only, and must be deposited directly into the library fund. The new construction assessed value amount for 2009 is estimated at $25,000,000. 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 $1.94 per $1,000 of assessed valuation for 2009. 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. This Initiative was found unconstitutional by the state supreme court in 2007, but the legislature enacted this requirement with House Bill 2416. 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. Property Tax Levy Rate by District Tax District 2009 2008 2007 2006 2005 County $1.31566 $1.29898 $1.52245 $1.57006 $1.72625 County Futures $0.03820 $0.04054 $0.04752 $0.04900 $0.05388 Port $0.16101 $0.17304 $0.21000 $0.22038 $0.22822 PUD $0.07275 $0.08929 $0.10498 $0.10826 $0.09880 City General $1.94000 $1.56180 $1.40629 $1.39798 $1.97334 State $1.94151 $2.04050 $2.35345 $2.55206 $2.76464 Local Schools $1.99620 $2.31895 $2.06897 $2.24764 $3.11351 City EMS $0.31637 $0.31785 $0.31659 $0.31544 $0.44585 Hospital $0.24410 $0.26360 $0.34282 $0.36373 $0.41705 Totals $8.02580 $8.10455 $8.36641 $8.81417 $10.81370 City Regular Levy Rate Assessed Property Per 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 City of Port Townsend10 General Fund Revenues 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 2007 $1,193,600,895 $1,678,549 $1.40629 2008 $1,221,864,640 $1,908,308 $1.56180 2009 $1,239,858,735 $2,405,326 $1.94000 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. City EMS Levy Rate Assessed Property Per 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 2007 $1,193,600,895 $377,882 $0.31659 2008 $1,221,864,640 $388,370 $0.31785 2009 $1,239,858,735 $392,253 $0.31637 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 $1,693,267 2007 $1,658,833 2008 $1,662,809 2009* $1,700,000 * = 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 1996 $262,360 1997 $269,241 City of Port Townsend11 General Fund Revenues 1998 $287,864 1999 $298,308 2000 $299,379 2001 $353,538 2002 $347,203 2003 $378,963 2004 $414,029 2005 $536,150 2006 $622,305 2007 $646,752 2008 $657,097 2009* $655,000 * = estimated State Shared Revenues 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 2009 estimated population is 8,925. 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 Class H licenses, the profits are divided among the state, counties, cities, and towns. Cities and towns receive a 40 percent share. An additional amount is distributed to border area cities and towns. Cities and towns also receive 28 percent of the liquor excise tax receipts. To be eligible to receive liquor taxes and profits, a city or town must devote at least 2 percent of its distribution to support an approved alcoholism or drug addiction program. Utility Tax The City imposes a utility tax on telecommunications, electricity, and natural gas at the rate of 6 percent. The City also imposes a utility tax on city provided utilities. Beginning in April 2007, the utility tax rate on city provided utilities is 20% for water, sewer, storm and garbage utilities. 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. City of Port Townsend12 General Fund Revenues Doing so does not affect the rate that leaseholders must pay; it simply determines who receives the money. 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 $319,738 2007 $279,457 2008 $212,716 2009* $226,000 * = estimated City of Port Townsend13 City of Port Townsend Fund Summary General Fund BudgetBudget YearYearIncrease 20092008<Decrease> Revenues By Source Taxes5,489,557$ 5,741,094$ (251,537)$ Licenses & Permits278,125364,527 (86,402) Intergovernmental132,536168,236 (35,700) Charges for Services1,669,4471,194,238 475,209 Fines & Forfeits113,200 113,200 - Miscellaneous Receipts18,716 26,650 (7,934) Operating Transfers-in- - - Total Revenues7,701,581$ 7,607,945$ 93,636$ Expenditures By Program Legislative87,703$ 92,558$ (4,856)$ Administrative Services245,560 221,398 24,162 Legal Services421,433 406,479 14,954 Clerk Services247,043 230,044 16,999 Financial Services389,316 319,524 69,792 Development Services607,755 751,133 (143,379) Planning Services82,511 211,903 (129,393) Law Enforcement Services2,691,203 2,655,159 36,044 Facility Services305,696 227,008 78,688 Public Access TV Station53,205 81,127 (27,922) Other Services30,136 23,969 6,167 Grants Management Services71,078 - 71,078 Transfers to Other Funds 2,160,200 2,491,425 (331,225) Total Expenditures 7,392,837$ 7,711,728$ (318,890)$ Expenditures By Object Personnel3,489,513$ 3,448,742$ 40,771$ Operating Expenditures1,073,971 1,062,940 11,030 Intergovernmental Services629,512 628,638 874 Interfund Transfers-out2,160,200 2,491,425 (331,225) Capital Outlay 39,642 93,500 (53,858) Total Expenditures 7,392,837$ 7,725,246$ (332,408)$ Estimated Beginning Fund Balance202,214$ 305,998$ (103,784)$ Increase<Decrease> in Fund Balance 308,743 (103,783) 412,527 Estimated Ending Fund Balance 510,957$ 202,214$ 308,743$ Fund Balance Reserve % =6.6%2.7% City of Port Townsend14 General Fund Revenue Summary by Category Increase Estimated Revenues20092008(Decrease) Taxes5,489,557$ 5,741,094$ (251,537)$ Licenses & Permits278,125 364,527 (86,402)$ Intergovernmental132,536 168,236 (35,700)$ Charges for Services1,669,447 1,194,238 475,209$ Fines & Forfeits113,200 113,200 -$ Miscellaneous Receipts18,716 26,650 (7,934)$ Operating Transfers-in- - -$ Totals7,701,581$ 7,607,945$ 93,636$ Revenue Summary by Category Taxes 71% Licenses & Permits 4% Intergovernmental 2% Charges for Services 22% Fines & Forfeits 1% Miscellaneous Receipts 0% City of Port Townsend15 General Fund Taxes by Source Property taxes1,360,100$ Retail sales taxes1,813,800 Private utility taxes784,290 Public utility taxes736,287 Business & occupation taxes655,000 Leasehold excise taxes95,000 Cable franchise taxes45,080 Total5,489,557$ General Fund Taxes by Source Property taxes 25% Retail sales taxes 33% Private utility taxes 14% Public utility taxes 13% Business & occupation taxes 12% Leasehold excise taxes 2% Cable franchise taxes 1% City of Port Townsend17 General Fund Expenditures by CategoryGeneral Government, $1,876,170 , 25%Economic Environment, $690,265 , 9% Public Safety, $3,514,838 , 48% Debt Service, $238,505 , 3%Culture & Recreation, $1,073,060 , 15% City of Port Townsend 18 General Fund Department ExpendituresCity Attorney, $421,433 , 6%City Clerk, $247,043 , 3%Planning Department, $82,511 , 1% Development Services, $607,755 , 8% Finance, $389,316 , 5% Police Admin, $664,849 , 9% Police Training, $7,840 , 0%City Facilities, $305,696 , 4%Non-Departmental, $30,136 , 0% PEG TV Department, $53,205 , 1% Grants Management, $71,078 , 1% Transfer-out Interfund Loan Repayments, $67,505 , 1%Transfer-out Debt Service, $171,000 , 2% Transfer-out Community Services, $1,073,060 , 15%Transfer-out Contingency Fund, $25,000 , 0%Transfer-out Fire/EMS, $823,635 , 11% Police Operations, $2,018,514, 27% City Council, $87,703 , 1%City Manager, $245,560 , 3% City of Port Townsend 19 General Fund Expenditures by Object Personnel costs, $3,493,566 , 47% Supplies, $56,642 , 1% Services, $663,605 , 9%Intergovernmental Services, $606,835 , 8%Capital Outlays, $40,142 , 1% Debt Service, $238,505 , 3%Interfund Services, $371,848 , 5%Interfund Transfers-out, $1,921,695 , 26% City of Port Townsend 20 General Fund Departmental Budgets City of Port Townsend21 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. City of Port Townsend22 CITY OF PORT TOWNSEND Departmental Summary City Council BudgetBudget YearYearIncrease 20092008<Decrease> Revenues By Program Taxes4,645,238$ 4,920,245$ (275,007)$ Licenses & permits6,000 6,000 - Intergovernmental Revenues250 250 - Charges for Services1,526,278 1,058,697 467,581 Fines and Forfeits- - - Miscellaneous Receipts24,966 18,900 6,066 Equity transfers in- - - Less: revenue provided to departments(6,115,030) (5,912,634) (202,396) Note 1 Total Estimated Revenues87,703$ 91,458$ (3,756)$ Expenditures By Program Legislative Services87,703$ 91,458$ (3,756)$ Total Expenditures87,703$ 91,458$ (3,756)$ Expenditures By Object Personnel48,543$ 48,537$ 6$ Operating Expenditures34,160 37,921 (3,762) Capital Outlay5,000 5,000 - Total Expenditures87,703$ 91,458$ (3,756)$ Performance Measures: Ending General Fund Balance5.6% General Fund Balance - City Council Amount Reserved1.0% (Policy amount needed = 1%) General Fund Balance - total Ending Fund Balance6.6% (Policy amount needed = 5% to 8%) Contingency Fund Balance as a percent of General Fund Estimated Revenues1.3% (Policy amount needed = 2%) Notes: 1.These revenues are collected to provide City services through all General Fund departments, including Fund Equity Transactions. City of Port Townsend23 City Manager Administrative Assistant City AttorneyCity Clerk PolicePublic Works PlanningFinance LibraryDevelopment Services Community Services Public Utilities City ManagerCitizen Boards and Commissions City Council Port Townsend Citizens City of Port Townsend24 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 administrative assistant. This department provides over-all administration of the city’s affairs. This includes enacting the policies and 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. City of Port Townsend25 CITY OF PORT TOWNSEND Departmental Summary City Manager BudgetBudget YearYearIncrease 20092008<Decrease> Revenues By Program Executive - General Fund Support245,560$ 222,498$ 23,062$ Expenditures By Program Safety Committee-$ 1,100$ (1,100)$ Administrative Services245,560 221,398 24,162 Total Expenditures245,560$ 222,498$ 23,062$ Expenditures By Object Personnel226,558$ 206,778$ 19,780$ Operating Expenditures17,502 14,220 3,282 Capital Outlay1,500 1,500 - Total Expenditures245,560$ 222,498$ 23,062$ City of Port Townsend26 City Attorney Legal AssistantContract City Prosecuting Attorney City Attorney City Manager City of Port Townsend27 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 2009 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. City of Port Townsend28 CITY OF PORT TOWNSEND Departmental Summary City Attorney BudgetBudget YearYearIncrease 20092008<Decrease> Revenues By Program Legal Services - General Fund Support421,433$ 406,479$ 14,954$ Expenditures By Program Muncipal Court Administration181,415$ 180,668$ 747$ Note 1 Legal Services 240,018 225,811 14,207 Total Expenditures 421,433$ 406,479$ 14,954$ Expenditures By Object Personnel199,292$ 181,883$ 17,409$ Operating Expenditures40,726 43,928 (3,202) Intergovernmental Services181,415 180,668 747 Capital Outlay- - - Total Expenditures421,433$ 406,479$ 14,954$ Note 1Starting in 2006, the costs for Municipal Court are administered through an interlocal contract with Jefferson County in the City Attorney's budget center. City of Port Townsend29 City Clerk Civil ServiceDeputy Clerk City Clerk City Manager 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. City of Port Townsend30 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 2008 Provided agendas, packets, and minutes for all council meetings and committee meetings. Used grant funding to film and digitize over 1200 pages of Public Works maps and as-built drawings. Coordinated all appointments to advisory boards and commissions. Conducted Civil Service testing. Acted as Public Records Officer, fulfilling public records requests; updated updated forms and procedures according to new legal requirements. Transferred most of remaining on-site historic documents to State Archives for permanent preservation. Scanned several years of building permits into database. Finalized updated personnel policies. Centralized human resources functions for advertising, recruitment and records in the Clerk’s office. Goals and Objectives 2009 Implement Granicus system to integrate Council meeting video, audio, and packets on line. Continue archiving historic records and maintaining records according to state retention schedule. Conduct Civil Service hiring process for new and replacement Police staff positions. Review municipal code to identify outdated references and inconsistencies. Using Granicus system, begin to work toward “paperless” Council packets. Work with State Archives and Historical Society to address historical records issues. Conduct training for City staff regarding public records disclosure. Update e-mail and electronic records procedures. City of Port Townsend31 CITY OF PORT TOWNSEND Departmental Summary City Clerk BudgetBudget YearYearIncrease 20092008<Decrease> Revenues By Source General Fund support247,043$ 225,544$ 21,499$ Archive Fees- 4,500 (4,500) Grants- - - Total Revenues247,043$ 230,044$ 16,999$ Expenditures By Program City Clerk Services247,043$ 230,044$ 16,999$ Total Expenditures247,043$ 230,044$ 16,999$ Expenditures by Object Personnel184,182$ 175,830$ 8,352$ Operting Expenditures61,861 53,214 8,647 Capital Outlay1,000 1,000 - Total Expenditures247,043$ 230,044$ 16,999$ Percent of coverage of expenditures by revenues0.00%1.96%-1.96% City of Port Townsend32 Department of Development Services Administrative Assistant Administration and Customer Services Counter Land Use Specialist I Land Use Specialist II Land Use Permitting Public Works Development Review Specialist I Public Works Development Review Specialist II Public Rights-of-Way Permitting Building Official Building Permitting Senior Planner Senior Planner II Development Review Engineer Development Services Director City Manager City of Port Townsend33 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. City of Port Townsend34 Development Services Department Mission Statement: The Development Services Department focuses on reviewing and issuing permits and approvals for new construction and renovation, demolition, land disturbing activities, permitted and conditional land uses and infrastructure construction. The mission of the Development Services Department is to coordinate and manage land use, building and infrastructure development in the City and along the shoreline. This includes implementation of the Comprehensive Plan through Municipal Code regulations; administration of building, historic preservation, shoreline, environmental, subdivision and design review regulations; development review of engineering and project design; and code compliance. The Department reviews development proposals and provides information, applications, permits and inspections to guide applicants from initial ideas to finished projects. Value Statements: • Provide courteous service and ensure a fair process for all community members who apply for permits or approvals. • Serve the public interest as it has been identified through adopted regulations and standards. • Provide timely, adequate, clear and accurate information on land use, building and engineering issues to all affected persons and to governmental decision makers. • Ensure that community members are informed on proposals and applications that may affect them. • Promote excellence of design and endeavor to preserve and enhance the integrity and heritage of the natural and built environment. • Strive for a high standard of professional integrity, proficiency and knowledge. • Provide cost-effective and efficient services for the community. Strategic Goals & Objectives for 2009 Goals: • Ensure that applications are reviewed in a consistent, effective and timely manner. • Ensure implementation of community goals through the consistent application of appropriate regulations. Objectives: • Develop and maintain constructive relationships with civic groups, other municipal departments and the public regarding land use activities. • Provide on-going assistance to citizens, contractors, designers and project proponents in the application of specific code provisions. • Expand the on-line availability of information on code requirements, development standards and application and project status. • Explore the feasibility of fee-based City design and construction of utility extensions to serve new development. • Review and revise (as warranted) current stormwater management regulations and development standards. • Assist in the completion of the Transportation and Stormwater Management Plan. City of Port Townsend35 CITY OF PORT TOWNSEND Departmental Summary Development Services Department BudgetBudget YearYearIncrease 20092008<Decrease> Revenues By Source General Fund support233,091$ 354,706$ (121,615)$ Building Permits226,000 331,277 (105,277) Zoning Fees32,000 32,000 - Plan Checking Fees1 - 1 Impact Fees1 - 1 SEPA Related Fees1 - 1 Planning Services34,000 14,000 20,000 Miscellaneous Revenues150 150 - Intergovernmental- 19,000 (19,000) Total Revenues525,244$ 751,133$ (225,889)$ Expenditures By Program Building & Planning Services525,244$ 751,133$ (225,889)$ Special Projects- - - Note 1 Total Expenditures525,244$ 751,133$ (225,889)$ Expenditures by Object Personnel423,722$ 512,282$ (88,560)$ Operating Expenditures101,522 182,851 (81,329) Capital Outlay- 56,000 (56,000) Total Expenditures525,244$ 751,133$ (225,889)$ Percent coverage of expenditures by revenues55.62%52.78%2.85% Starting in 2008, Special Projects was segregated as the new Planning Department. City of Port Townsend36 Planning Department The Planning Department focuses on long-range issues associated with the development and implementation of the City’s Comprehensive Plan. Mission Statement: Assist the community in their consideration of alternative future directions and implementation of policies in regards to the long-term development of the city. In addition, facilitate all long-range land use planning activities, including, but not limited to, those relating to comprehensive planning, shoreline master planning and critical area regulation. Value Statements: • Serve the public interest as it has been identified through continuous and open community discussion. • Provide timely, adequate, clear and accurate information on planning issues to all affected persons and to governmental decision makers. • Ensure that community members have a meaningful impact on the development of plans and programs that may affect them. • Foster partnerships between the City and other jurisdictions, agencies and the private sector. • Strive for a high standard of professional integrity, proficiency and knowledge. Strategic Goals & Objectives for 2009 Goals: • Ensure that identified community initiatives are facilitated in an effective, economically viable and timely manner. • Ensure that community involvement in developing long-range planning goals and implementing planning initiatives is focused and meaningful. • Ensure implementation of community goals through the development of appropriate regulations. Objectives: • Facilitate the permitting and construction of the Upper Sims Way / Howard Street Strategy and Implementation Plan. • Address short and long-term issues associated with Washington State Ferries service to Port Townsend. • Facilitate the permitting and implementation of the North Downtown Historic Streetscape Design Concept Plan. • Facilitate the public and environmental review process for the City’s Transportation Plan. • Prepare revisions to the Port Townsend Municipal Code for consideration by Planning Commission, Council and the Community. Focus areas for proposed revision will be: Critical Area regulations, Sign Code standards, Uptown commercial design standards and historic residential teardown, bulk and dimensional standards. • Assist in the implementation of the Housing Action Plan. • Facilitate the development of a Climate Action Strategy for the City. • Support the on-going work of the Alternative Energy Committee. • Assist Development Services permitting function on a project-specific basis. City of Port Townsend37 CITY OF PORT TOWNSEND Departmental Summary Planning Department BudgetBudget YearYearIncrease 20092008<Decrease> Revenues By Source General Fund support165,021$ 211,903$ (46,882)$ Planning Services- - - Misc Revenues- - - Intergovernmental- - - Total Revenues165,021$ 211,903$ (46,882)$ Expenditures By Program Planning Services165,021$ 211,903$ (46,882)$ Note 1 Total Expenditures165,021$ 211,903$ (46,882)$ Expenditures by Object Personnel159,821$ 192,635$ (32,814)$ Operating Expenditures5,200 19,268 (14,068) Capital Outlay- - - Total Expenditures165,021$ 211,903$ (46,882)$ Percent coverage of expenditures by revenues0.00%0.00%0.00% Starting in 2008, Special Projects was segregated as the new Planning Department. City of Port Townsend38 Finance Department Utility Billing Clerk Utility Billing Clerk Business Licensing Compliance Specialist Customer Services Accounting Assistant Accounts Payable Payroll/ Benefits Administrator Grants & Contract Compliance Specialist Accounting & Treasury Deputy Finance Director Information Technology Administrator Finance Director City Manager City of Port Townsend39 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; • Parking citation receipts; • Local Improvement District assessment collections; • Utility billing for water, sewer, and storm; • 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. 2008 Accomplishments • Successfully completed the annual audit by the State Auditor; and • Completed financing plan for capital project funds with issue of $7,500,000 councilmanic bond. 2009 Goals and Objectives In 2009, we will enhance the city accounting systems to allow for Internet payments, automatic bank debits and credit card payments for utility accounts. For city business licenses we will expand options for businesses to use the state’s master business license portal to renew city licenses. The city shall enhance business and occupation tax filings and audit. Goal: Upgrade city financial accounting systems. • Work with contractor to implement enhancements to current accounting systems; and • Interface billing systems to web enabled for utility billing customer accounts; and • Utility payments via other payment methods such as ACH automatic debit, credit card payments and Internet payments. Goal: Partner with state Department of Licensing for annual business license opportunities. • Work with state to allow business annual licensing simplification; and • Allocate staffing to review compliance for business licenses and tax payments. Goal: Determine financing plan for Upper Sims Way capital projects. • Work with Public Works to develop preliminary project costs; and • Establish project accounting records; and • Develop financing schedules for projects. City of Port Townsend40 Finance Department Goal: Implement new capital project reporting system. • Design project reporting system that will be network based; and • Train staff to utilize new system. Goal: Continue to improve financial reporting of the city’s revenues, expenditures, and financial condition. • Strive for excellence in both budgeting and financial reporting; and • Continue to improve financial reporting of the city’s revenues, expenditures, and financial condition. City of Port Townsend41 CITY OF PORT TOWNSEND Departmental Summary Finance Department BudgetBudget YearYearIncrease 20092008<Decrease> Revenues By Source B&O tax collections655,000$ 636,076$ 18,924$ Business & Other Licenses40,000 40,000 - Interfund Services48,216 40,591 7,625 Investment income500 10,000 (9,500) Total Revenues743,716$ 726,667$ 17,049$ Expenditures By Program City Financial Services389,316$ 319,524$ 69,792$ Total Expenditures389,316$ 319,524$ 69,792$ Expenditures by Object Personnel329,966$ 260,837$ 69,129$ Operating Expenditures56,600 55,937 663 Capital Outlay2,750 2,750 - Total Expenditures389,316$ 319,524$ 69,792$ Percent coverage of expenditures by revenues191.03%227.42%-36.39% City of Port Townsend42 Police Department Police Clerks Administrative Supervisor Patrol Officers Police Reserve Officers Police Cadets Patrol Sergeant Squad A Patrol Officers Patrol Sergeant Squad B Citizen Volunteers Admin Sergeant School Liasion Bike Safety Code Enforcement Detective Patrol Sergeant Police Chief City Manager City of Port Townsend43 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 and Administrative Sergeant who provide 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 three 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 three 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 Citizen Volunteer Program. The Citizen Volunteer Program is coordinated and overseen by a Retired California Police Officer. INVESTIGATIONS The Investigations Division, (currently consisting of two officers), 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. 2009 GOALS AND OBJECTIVES • Maintain and enhance the training for every employee and officer utilizing the resources within our department and community. • Prepare and present a Citizens Academy. • Prepare for and move the police department to its new facility at 1615 Parkside Dr., Port Townsend, WA City of Port Townsend44 CITY OF PORT TOWNSEND Departmental Summary Police Department BudgetBudget YearYearIncrease 20092008<Decrease> Revenues By Source General Fund support2,281,428$ 2,232,151$ 49,277$ Court Appointed Inmate fees- - - Fines107,200 107,200 - Grants7,500 30,500 (23,000) Law enforcement services24,000 26,000 (2,000) Retail Sales Taxes - Criminal Justice113,800 113,800 - Public Utility Taxes - Water, Sewer,Storm, Garbage96,037 87,737 8,300 Criminal Justice Taxes12,455 12,305 150 Liquor Excise Taxes44,982 41,666 3,316 Motor Vehicle Taxes2,000 2,000 - Miscellaneous1,800 1,800 - Total Revenues2,691,203$ 2,655,159$ 36,044$ Expenditures By Program Administration664,849$ 629,753$ 35,096$ Operations2,018,514 2,017,566 948 Note 1 Training7,840 7,840 - Total Expenditures2,691,203$ 2,655,159$ 36,044$ Expenditures by Object Personnel1,703,696$ 1,772,870$ (69,174)$ Operating Expenditures536,910 429,319 107,591 Intergovernmental Services448,097 447,970 127 Capital Outlay2,500 5,000 (2,500) Total Expenditures2,691,203$ 2,655,159$ 36,044$ Percent of coverage of expenditures bq revenues15.23%15.93%-0.71% Note 1In 2006, interlocal contracts with Jefferson County for services were relocated in the Police Department from the city contracts cost center for monitoring and control: Animal control services Jail services Dispatch services City of Port Townsend45 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 with one Maintenance Worker and 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 2009, we will continue efforts to expand completion of deferred maintenance of existing facilities to include City Hall, Pope Marine Building, and Parks facilities. We will also be replacing the janitorial contract for City-owned facilities with a new janitorial employee. In 2008 we replaced the roof on the golf course club house, painted the Pink house, rebuilt the Four Corners valve shack, contracted to replace the roof on the Pope Marine building, and purchased and set up a new building for the chamber of commerce visitor center. City of Port Townsend46 CITY OF PORT TOWNSEND Departmental Summary City Facilities Department BudgetBudget YearYearIncrease 20092008<Decrease> Revenues By Source General Fund support305,696$ 211,008$ 94,688$ Interfund maintenance charges-Lodging Tax Fund- 16,000 (16,000) Federal grants- - - Custodial Services- - - Total Revenues305,696$ 227,008$ 78,688$ Expenditures By Program Public Restrooms-$ 7,312$ (7,312)$ City Hall and Facilities305,696 219,696 86,000 Total Expenditures305,696$ 227,008$ 78,688$ Expenditures by Object Personnel142,655$ 83,572$ 59,083$ Operating Expenditures163,041 143,436 19,605 Capital Outlay- - - Total Expenditures305,696$ 227,008$ 78,688$ Percent of coverage of expenditures by revenues0.00%7.05%-7.05% City of Port Townsend47 Non-Departmental The General Fund cost center “Non- Departmental” is where costs, which are not directly assigned to an existing General Fund department, are summarized. In previous years, costs for contracted services to Jefferson County were listed here. In 2006, the city assigned the county services to specific city departments to manage. The expenditures remaining are for benefit reserves, and other state agency charges. City of Port Townsend48 CITY OF PORT TOWNSEND Departmental Summary Non-Departmental BudgetBudget YearYearIncrease 20092008<Decrease> Revenues By Source General Fund support30,136$ 23,969$ 6,167$ - - - Total Revenues30,136$ 23,969$ 6,167$ Expenditures By Program Intergovernmental Services3,989 3,969 20$ Note 1 Reserve (medical benefits and capital facilities reserve)26,147 20,000 6,147 - - - Total Expenditures30,136$ 23,969$ 6,167$ Expenditures by Object Intergovernmental Services - Jefferson County contract-$ -$ -$ Note 1 Operating Expenditures30,136 23,969 6,167 Total Expenditures30,136$ 23,969$ 6,167$ Percent of coverage of expenditures by revenues0.00%0.00%0.00% Note 1 In 2005, these services included the cost of contract services provided by Jefferson County: District Court, Dispatch, Alcohol and Drug Abuse, Animal Control, and Computer Network Support. Starting in 2006, the interlocal contract costs were reassigned to various city departments to monitor and administer as part of their department budgets. City of Port Townsend49 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 contract station manager. 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 City of Port Townsend50 CITY OF PORT TOWNSEND Departmental Summary P.E.G. Access TV Studio BudgetBudget YearYearIncrease 20092008<Decrease> Revenues By Source General Fund support-$ 38,395$ (38,395)$ Utility Tax- TV Cable Franchise Fee45,080 46,000 (920) TV Public Access Fee6,125 6,250 (125) Program Fees2,000 4,000 (2,000) Total Revenue53,205$ 94,645$ (41,440)$ Expenditures Operating Expenditures26,313$ 58,877$ (32,564)$ Capital Outlay - restricted6,125 22,250 (16,125) Capital Outlay - unrestricted20,767 - 20,767 Personnel- 13,518 (13,518) Total Expenditures53,205$ 94,645$ (41,440)$ Program Revenues in Excess of Expenditures-$ (38,395)$ -$ Percent coverage of expenditures by revenues100.0%59.4%40.6% City of Port Townsend51 Grants Management Functions Starting in 2009, a new department is created for researching, applying, and coordination of various city state and federal grant proposals. Previously, this function was covered by the Public Safety Analyst position that was budgeted in the Police Department. With many city projects now in the planning stages, this new function will better focus on grant funding opportunities, and potentially seek reimbursement for some of the grant administration costs. City of Port Townsend52 CITY OF PORT TOWNSEND Departmental Summary Grants Management Department BudgetBudget YearYearIncrease 20092008<Decrease> Revenues By Source Interfund Services-$ -$ -$ General Fund Support 71,078 - 71,078 Total Revenues 71,078$ -$ 71,078$ Expenditures By Program Grants Management 71,078 - 71,078 Total Expenditures 71,078$ -$ 71,078$ Expenditures by Object Personnel71,078$ -$ 71,078$ Operating Expenditures- - - Capital Outlay- - - Total Expenditures71,078$ -$ 71,078$ City of Port Townsend53 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 provision allows the City Council and citizens to more clearly see when budgetary transfers are to occur, and where those transfers went. Typically, transfers out to support other city operations are posted to these accounts. Current transfers out are budgeted for the following funds: • G.O. Debt Service Fund for debt service payments; and • Contingency Fund to restore reserve levels; and • Community Services Fund to support non-profit community services, city parks and pool operations; and • Fire & EMS Services Fund to provide fire and EMS services via contract with East Jefferson Fire Rescue; and • Equipment Rental & Revolving Fund for interfund loan repayments; and • Transmission Pipe Line Trust Fund for interfund loan repayments. Finally, this summary provides the totals for the General Fund, ending fund balance as projected in the budget development. City of Port Townsend54 CITY OF PORT TOWNSEND Departmental Summary Fund Equity and Transactions BudgetBudget YearYearIncrease 20092008<Decrease> Ending General Fund Balance City Council Reserved Fund Balance - (1%)62,027$ 60,041$ 1,986$ see Note 1 Unreserved Fund Balance448,930 142,173 306,757 Total Ending Fund Balance510,957$ 202,214$ 308,743$ Other Financing Uses Interfund Subsidies - Transfer-Out to Bond 2005 Fund171,000$ 171,000$ -$ Interfund Subsidies - Transfer-Out to Street Fund- - - Interfund Subsidies - Transfer-Out to Emergency Services Fund823,635 821,178 2,457 Interfund Subsidies - Transfer-Out to Library Fund- 775,082 (775,082) Interfund Subsidies - Transfer-Out ER&R Fund28,442 - 28,442 Interfund Subsidies - Transfer-Out Transmission Line Fund39,063 - 39,063 Interfund Subsidies - Transfer-Out Contingency Fund25,000 - 25,000 Interfund Subsidies - Transfer-Out to Community Services Fund1,073,060 724,166 348,894 Total Other Financing Uses2,160,200$ 2,491,425$ (331,225)$ Total Fund Equity and Other Financing Uses2,671,157$ 2,693,639$ (22,482)$ Estimated Ending Fund Balance reserve6.6%2.7% Notes: 1.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. City of Port Townsend55 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 budgets ten special revenue funds: • Drug Enforcement and Education Fund • Contingency 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 are no staff assigned to operate within 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 within 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. Recommendations for applicants for this program are initiated by the Main Street organization. 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 restricted to 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 City of Port Townsend56 Special Revenue Funds facilities, to secure the payment of all or any portion of general 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%. 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 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 City of Port Townsend57 Special Revenue Funds 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 suppression 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 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. On August 19, 2008, Port Townsend voters approved a property tax levy lid lift to support the Library operations. The ballot measure authorized a $0.75 per thousand dollars of assessed valuation property tax levy restricted to the library operations. This new property tax is deposited directly in the Library Fund. Detail budget information follows. Fire and EMS Services Fund 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. In 2007, the city outsourced the fire and emergency medical services to Jefferson Fire District #6 (aka East Jefferson Fire Rescue). All city fire department equipment and employees were transferred to the district, and the city contracts directly to the district for those services. Under the terms of the Interlocal contract, the city pays a base contract amount (increased annually 1% for levy increases, plus 50% of the property taxes received from new construction property values) for fire services, and pays all of the EMS property tax revenues to the district. This fund accounts for the EMS property taxes collected and contract payments to the district. Detail budget information follows. Public Works and Engineering Fund 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. Revenues to support this fund are derived by interfund charges to the funds which are benefiting from these public works services (streets, water, sewer, stormwater and equipment rental). Detail budget information follows. Community Services Fund In 2005, a new accounting fund was created for the operation of city community services (parks maintenance, pool, recreation, and community service programs) with enabling city Ordinance No. 2889. In prior years these services were included in various city general fund departments. Revenues to support this fund are derived mostly by a general fund subsidy transfer and some user fees. This fund includes funding for other city services contract providers. They include Domestic Violence for $40,000, Boiler Room for $24,000, UGN for $5,000, Main Street for $40,000, YMCA for $118,000, and Arts City of Port Townsend58 Special Revenue Funds Commission for $19,600. Detail budget information follows. Street Fund The Street Fund is responsible for the administration and maintenance of the city’s transportation network, which includes approximately 74 miles of public roadways together with roadside improvements, sidewalks, bicycle facilities, signalization and illumination systems. The work plan associated with this responsibility include: • Street sweeping • Roadside vegetation management and mowing • Landscape maintenance • Pavement and shoulder repair • Pavement markings • Snow and ice control • Traffic signal and illumination system maintenance • Signage • Traffic counts • Transportation planning • Street tree maintenance The Street Fund receives revenues from state distributions of motor vehicle fuel taxes for two programs: city streets and arterial streets. State law restricts these revenues: • City streets: to be used for any street purposes (RCW 46.68.070.110, 47.24.040 and 35.76 RCW) • Arterial streets: to be used for highways and arterial streets. For cities with populations less than 15,000, cities may use these monies for the maintenance of arterial highways and city streets (RCW 46.68.070). The city consolidated its Arterial Street Fund into the Street Fund in 2000 as allowed by RCW 46.68.070 for cities with populations less than 15,000. These state revenues distributions are not sufficient resources to maintain city streets. Prior to 2007, the city general fund provided subsidies to the street fund for its operation. In 2007, the city council authorized an increase in the city utility tax by 10% resulting in a total public utility tax of 20%. The city council restricted this 10% increase for an allocation to public safety (1.5%) and street maintenance and operation (8.5%). Detail budget information follows. City of Port Townsend59 CITY OF PORT TOWNSEND Fund Summary Drug Enforcement and Education Fund BudgetBudget YearYearIncrease 20092008<Decrease> Revenues By Source Investment Interest2$ 2$ -$ Expenditures Supplies- - - Capital- - - -$ -$ -$ Estimated Beginning Fund Balance661$ 659$ 2$ Increase<Decrease> in Fund Balance2 2 - Estimated Ending Fund Balance663$ 661$ 2$ City of Port Townsend60 CITY OF PORT TOWNSEND Fund Summary Contingency Fund BudgetBudget YearYearIncrease 20092008<Decrease> Revenues By Source Property Tax-$ -$ -$ Operating Transfer-in25,000 - 25,000 Investment Interest2,136 6,682 (4,547) Total Revenues27,136$ 6,682$ 20,453$ Expenditures-$ 102,554$ (102,554)$ Estimated Beginning Fund Balance71,184$ 167,056$ (95,872)$ Increase<Decrease> in Fund Balance27,136 (95,872) 123,007 Estimated Ending Fund Balance98,320$ 71,184$ 27,136$ City of Port Townsend61 Street/Sewer/Storm Divisions Biosolids/Compost Treatment Operators (2 FTE) Biosolids Composting Facility Wastewater Treatment Operators (3 FTE) Wasterwater Treatment Facility Wastewater Treatment Equipment Operators (4 FTE) Maintenance Worker (1 FTE) Seasonal Part time (1.5 FTE) Street/Sewer/Storm Crew Chief Operations & Maintenance Manager Street/Sewer/Storm Public Works Director City Manager City of Port Townsend62 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 and develop an overall Street Operations & Maintenance Plan. 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. Develop an O & M Plan for Streets. 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. 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. 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. 2008 Accomplishments Installed hot tape bicycle symbols and arrows on streets that were previously painted to reduce the labor hours to maintain the paint. Completed making spot repairs to the downtown and uptown sidewalks to prevent tripping hazards. Spent approximately 40 + hours doing this work. Chip sealed 0.0 miles of gravel streets utilizing the Jefferson County Road Department because of the inability to get the oil. Received approved reclamation plan from the Washington State Department of Natural Resources for the City’s Cape George Gravel Pit. City of Port Townsend63 Street Fund Street Division Performance Measures 2006 2007 2008 as of 10/31/08 2009 Est. Citizen concern/requests received 307 260 166 150 Painting of crosswalks, curbs, and parking stalls (Time Spent, Hrs.) 500 500 500 500 Miles of gravel road maintained twice a year 6.4 5.17 5.04 5.0 Miles of roadway maintained in the City. 76.9 78.34 79 80 Miles of road re-striped –one time per year 40 40 40 40 Street Shoulders - Miles pulled 1.0 0.5 0.75 2 Right-of-Way chip sealed or Paved (Miles) 0.80 0.772 Chip Sealed 0.0 1.5 Depending on Funding City of Port Townsend64 CITY OF PORT TOWNSEND Fund Summary Street Fund BudgetBudget YearYearIncrease 20092008<Decrease> Revenues By Source State Grants-$ -$ -$ Federal Grants (Indirect)- - - Motor Vehicle Fuel Tax208,934 222,423 (13,489) Public Utility Taxes - Water,Sewer,Storm,Garbage544,212 497,176 47,036 Street Development Permits1,000 1,000 - Investment Interest5,607 6,161 (554) Street Payback Collection9,100 9,100 - Miscellaneous Income300 300 - Operating Transfers- In- - - Total Revenues769,153$ 736,161$ 32,992$ Expenditures by program Operations845,894$ 712,175$ 133,719$ Capital Improvement Projects100,000 75,000 25,000 Total Expenditures945,894$ 787,175$ 158,719$ Expenditures by object Repairs & Maintenance-$ -$ -$ Utility Services73,800 73,800 - Supplies41,000 41,000 - Services & Charges105,530 96,406 9,124 Personnel169,565 151,903 17,662 Capital Outlay100,000 75,000 25,000 Interfund Services455,998 349,066 106,933 Total Expenditures945,894$ 787,175$ 158,719$ Actual Beginning Fund Balance186,902$ 237,917$ (51,014)$ Increase<Decrease> in Fund Balance(176,741) (51,014) (125,727) Estimated Ending Fund Balance10,162$ 186,902$ (176,741)$ City of Port Townsend65 Library Fund City Manager Library Director Adult Services Library Support Network Library Advisory Board Port Townsend Library Foundation Friends of the Port Townsend Library Port Townsend Library Volunteers Youth Services Circulation Services Technical Services Development Resource Assistant (.125 FTE) Adult Services Librarian (.75 FTE) Library Associate (.625 FTE) Library Associate (.875 FTE) Youth Services Librarian (.75 FTE) Senior Library Associate (.88 FTE) Circulation Coordinator/ Administrative Assistant (1.0 FTE) Library Associate Circ/Volunteer Coordinator (.75 FTE) Library Assistant (.75 FTE) Library Page/Courier (.88 FTE) Senior Library Associate (.75 FTE) Processing Technician (.88 FTE) Library Page (.25 FTE) Library Assistant (.2 FTE) Library Assistant Substitutes (.385 FTE) Library Assistant (.5 FTE TITLE V) City of Port Townsend 66 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 On August 19, 2008, Port Townsend voters approved a property tax levy lid lift to support library operations. A large majority of city residents (64%) passed this new levy authority. The levy authority increase raises the city’s legal taxing authority from about $1.56 per thousand dollars of assessed valuation (AV) up to $2.31 per thousand dollars of AV. The library levy will provide approximately $930,000 per year to operate the library, and it must be deposited directly to the Library Fund restricted for library operations. To minimize the impact of a new levy on citizens, the City Council directed this levy be phased in over three years. Starting in 2009, the property tax levy will increase $0.38 to approximately $1.94 per AV. In 2010, the tax levy will increase $0.60 to approximately $2.16 per AV. In 2011, the tax levy will increase $0.75 to approximately $2.31 per AV. Although the new levy is being phased in over three years, the library will receive its full $0.75 levy each year. Collections The library has almost 60,000 items including: books, magazines and newspapers, videos/DVDs, audio books, music CDs, and online reference databases which offer many full text articles covering a broad range of topics. The Maritime Resource Center is a major collection of maritime books, videos, and magazines, with a focus on boat building and design. Interlibrary Cooperation The library participates and shares an automated card catalog and circulation system with CLAN (Cooperative Libraries Automated Network) a consortium which includes Jefferson County Library, and Quilcene and Brinnon School libraries. The library shares in providing courier services between the two public libraries. Interlibrary loan items may be borrowed from libraries outside CLAN through OCLC a national interlibrary loan network. Technology The library provides computer software and public access to the Internet. Information about the library, access to the library catalog, useful links, current information about special programs and upcoming events, and additional library services are made available on the city library’s web site. Public Programs The library offers a continuing series of programs for adults, teens, and children including a community read, special interest topics, workshops, story hours, concerts, well- known authors and illustrators, book discussion groups, summer reading, homework help, and curriculum support. Information Services The library has a knowledgeable staff that provides reference and research assistance, readers’ advisory for popular materials, and training in the use of reference databases. Operations The library’s collection management and administrative team provide collection development, book processing, cataloging, outreach and program planning, and fund raising. City of Port Townsend67 Library Fund 2008 Accomplishments Following are major accomplishments in 2008 relative to the five goals of the library strategic plan. Goal 1: The Library facilities are accessible, flexible, inviting, and functional to meet the community’s needs. • Continued to move forward with securing funding for the library capital improvement/expansion project from various federal, state, and private sources. • Updated technology plan to include expansion of public service computers. Added a reader’s advisory “Blog” to the library’s website. • Achieved a resolution for the ongoing maintenance of library grounds thanks to passage of library levy. • Developed and implemented plan for utilizing the “Pink House” for library programs, office space, staff room, and meetings. Goal 2: The Library collections in all formats are developed and managed to meet the diverse needs of all users. • Raised through the Friends of the Library $6,240 to help support the library’s acquisitions budget. • Began process for adding downloadable audio books to the public catalog. • Continued ongoing collections management with a focus on increasing magazine subscriptions, Large Print, and strengthening targeted subject areas of travel, cookery, textile arts, parenting, and languages. • Re-cataloged and re-housed the music CD collection (1,000 items) for better public access. • Strengthened collaboration with the Jefferson County Library for conducting more efficient and effective collection development that maximized the acquisition resources of each library. Began to plan expanding collaboration to include public/private schools. Goal 3: The Library will strengthen its role as a community resource through the development of programs and services and the creation of community and professional partnerships. • Offered 561 programs and events with over 13,300 adults, teens, and children attending. The majority of public programs were funded from outside resources including the Friends of the Library. • Added afternoon book discussion group for adults. • Received funding from the National Libraries of Medicine/Pacific Northwest Region to develop a program to strengthen the library’s role as a community informational resource for health and wellness. • Awarded for the second year in a row, $7,000 from the Washington State Library with funding from the Institute of Museum and Library Services to support the annual City wide Community Read program. Goal 4: The Library has adequate stable and predictable financial support from diverse public and private sources to ensure a sound financial future. • Raised $6,240 through the Friends of the Library to help support new collection materials. • Began to develop plan and organizational structure to conduct capital campaign for library improvement and expansion project. • Continued to build Development Steering Committee’s capacity for fund raising. Acquired fund raising software to operate more effectively. • Clarified role of volunteer support groups as grant fiscal agents, as needed. City of Port Townsend68 Library Fund Goal 5: The Library cultivates and celebrates professional and support staff and volunteer leadership essential for continuing excellence in providing quality library services. • Held annual staff development event utilizing the Maritime Center’s Team Building Program with Long Boats. • Re-organized library staffing to account for the restoration of library hours and expansion of programs and services. • Continued to expand role of volunteers in appropriate library operations. Major 2009 Priorities and Initiatives The major challenge for 2009 and beyond is the library expansion and improvement project. The library Development Steering Committee which consists of the leadership of the library’s major volunteer support groups - Friends, Foundation, and Advisory Board - will work with the library to identify a plan and process for fundraising from individuals and private organizations and foundations. The funding strategy for this capital project is to secure a substantial portion of support from non-City sources before seeking the balance from City funds. Library technology will be improved with the upgrade of public computers and the selection of a new and improved library information system for CLAN (Cooperative Libraries Automated Network). This new library information system will provide a more “customer friendly” public interface as well as faster and more reliable service. Another major area of impact from the library levy is an increase in funding for new collection materials in all formats including print, downloadable audio books, online full text reference works, and mixed media. This additional support will also be used to strengthen specific subject areas such as science, health, and languages, and to set up selected “self help” areas where patrons can obtain specialized information and resources on high demand topics relative to business and marketing, employment and careers, and health and wellness. Public programs will continue to be an important part of the library’s mission in 2009. In addition to the successful ongoing events focused on early childhood literacy and the annual community programs of summer reading, community read and the Adventures in Learning series, the library will offer new and expanded author and thematic programs for all audiences including weekend and evening story hours, homework help, home schooling support, book groups, adult summer reading, etc. A grant through the Friends of the Library from the National Network of Libraries of Medicine/Pacific Northwest Region will enable the library to partner with the Food Coop to expand its capacity to provide high quality information that supports parents in making healthy eating choices for their families. The public program and collection development part of this project will help position the Port Townsend Public Library as an important community resource for healthy eating. The Port Townsend Public Library is already reaching out to parts of the community that have difficulty in coming into the library. Books on Wheels and Daycare Delivery programs continue to be overwhelming successes. The library will continue to reach out to the underserved parts of the community by investigating the feasibility of placing a book drop and holds pick-up station in the Castle Hill area within the next year. City of Port Townsend69 City of Port Townsend Fund Summary Library Fund BudgetBudget YearYearIncrease 20092008<Decrease> Revenues By Source General Fund support-$ 775,082$ (775,082)$ Property Taxes934,726 - 934,726 State grants- - - Private grants- - - Fines12,000 12,000 - Miscellaneous7,000 - 7,000 Total Revenues953,726$ 787,082$ 166,644$ Expenditures By Program Library Services897,489$ 793,783$ 103,706$ Total Expenditures897,489$ 793,783$ 103,706$ Expenditures by Object Personnel581,082$ 508,353$ 72,729$ Operating Expenditures231,407 220,430 10,977 Capital Outlay - Acquisitions85,000 - 85,000 Capital Outlay - Furniture & Fixtures- 65,000 (65,000) Total Expenditures897,489$ 793,783$ 103,706$ Estimated Beginning Fund Balance-$ 6,701$ (6,701)$ Increase<Decrease> in Fund Balance56,237 (6,701) 62,938 Estimated Ending Fund Balance56,237$ -$ 56,237$ Fund Balance Reserve % =5.9%0.0% City of Port Townsend70 CITY OF PORT TOWNSEND Fund Summary Community Development Block Grant Fund BudgetBudget YearYearIncrease 20092008<Decrease> Revenues By Source Federal Program Income10,000$ 10,001$ (1)$ Federal Grant Programs- - - Investment Interest Income 2,853 3,029 (176) Total Revenues 12,853$ 13,030$ (177)$ Expenditures Community Development Loans-Other-$ -$ -$ Community Development Loans-Historic District 50,000 50,000 - Total Expenditures 50,000$ 50,000$ -$ Estimated Beginning Fund Balance95,101$ 132,071$ (36,970)$ Increase<Decrease> in Fund Balance(37,147) (36,970) (177) Estimated Ending Fund Balance57,954$ 95,101$ (37,147)$ City of Port Townsend71 CITY OF PORT TOWNSEND Fund Summary Lodging Tax Fund BudgetBudget YearYearIncrease 20092008<Decrease> Revenues By Source Hotel Motel Taxes356,000$ 342,476$ 13,524$ Investment Interest3,991 8,128 (4,137) Total Revenues359,991$ 350,604$ 9,387$ Expenditures Professional Services-PT Chamber-$ 90,000$ (90,000)$ Professional Services-PAW- 45,000 (45,000) Professional Services-Other307,500 7,000 300,500 Advertising- 125,000 (125,000) Advertising-Joint Marketing- 20,000 (20,000) Communications- 5,000 (5,000) Miscellaneous-Special Events- 62,000 (62,000) General Fund Overhead Charges40,417 16,000 24,417 Interfund Services & Charges - Public Restrooms- 16,000 (16,000) Interfund Subsidies - Waterfront debt service69,269 35,513 33,756 Interfund Subsidies - McCurdy Pavilion debt service21,414 21,412 2 Interfund Subsidies - PT Marine Science Center debt5,983 5,983 - Total Expenditures444,583$ 448,908$ (4,325)$ Estimated Beginning Fund Balance133,039$ 231,343$ (98,304)$ Increase<Decrease> in Fund Balance(84,591) (98,304) 13,712 Estimated Ending Fund Balance48,447$ 133,039$ (84,591)$ Estimated Ending Fund Balance Reserve 13.5%37.9% City of Port Townsend72 CITY OF PORT TOWNSEND Fund Summary System Development Charges Fund BudgetBudget YearYearIncrease 20092008<Decrease> Revenues By Source Interest Income9,641$ 15,413$ (5,771)$ Water SDCs-City74,000 105,000 (31,000) Water SDCs-Outside city20,000 25,000 (5,000) Sewer SDCs69,000 95,000 (26,000) Total Revenues172,641$ 240,413$ (67,771)$ Expenditures Interfund Subsidies (Water)300,000$ 165,000$ 135,000$ Interfund Subsidies (Sewer)190,000 385,000 (195,000) Total Expenditures490,000$ 550,000$ (60,000)$ Estimated Beginning Fund Balance321,380$ 630,968$ (309,587)$ Increase<Decrease> in Fund Balance(317,359) (309,587) (7,771) Estimated Ending Fund Balance4,022$ 321,380$ (317,359)$ City of Port Townsend73 City of Port Townsend Fund Summary Fire and Emergency Services Fund BudgetBudget YearYearIncrease 20092008<Decrease> Revenues By Source General Fund support823,635$ 821,178$ 2,457$ EMS Levy392,253 388,371 3,882 Residual Equity Transfer in- - - Total Revenues1,215,888$ 1,209,549$ 6,339$ Expenditures By Program Fire-$ -$ -$ Emergency Medical Services (EMS)- - - Contract Emergency Services1,215,888 1,209,549 6,339 Total Expenditures1,215,888$ 1,209,549$ 6,339$ Expenditures by Object Personnel-$ -$ -$ Operating Expenditures- - - Intergovernmental Charges-EJFR1,215,888 1,209,549 6,339 Note 1 Capital Outlay- - - Total Expenditures1,215,888$ 1,209,549$ 6,339$ Estimated Beginning Fund Balance3,442$ 3,442$ -$ Increase<Decrease> in Fund Balance- (0) 0 Estimated Ending Fund Balance3,442$ 3,442$ 0$ Notes 1 Starting in 2007, all fire employees and fire apparatus was transferred to the new consolidated fire district, East Jefferson Fire Rescue. The city contracts directly for fire and emergency medical services from this new fire district. City of Port Townsend74 Public Works Administration Office Lead Engineering Division see Organizational Chart Street/Sewer/Storm Division see Organizational Chart Parks & Recreation Division see Organizational Chart Water & Facilities Division see Organizational Chart Public Works Director City Manager City of Port Townsend75 Public Works Engineering Department Public Works Engineering Assistant Development Review Engineer Development Review Specialist Public Works Inspector Development Review Work Group Civil Engineer Engineering Technician GIS Coordinator/ Project Manager Project Management, Design, GIS/CADD Work Group City Engineer Public Works Director City Manager City of Port Townsend76 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. 2009 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. Projects include the Wastewater Treatment Plant Outfall, Kanu Drive Pump Station Replacement and a plan for sewer extension in the southwest quadrant of the City. 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. Provide engineering review of proposed development in support of the Development Services Department and update the Engineering Design Standards as needed. Increase emphasis on transportation planning and street maintenance and improvement operations. Develop plans for Upper Sims Way Improvement, and Downtown and Uptown Streetscape projects, as well as sidewalk extension on north San Juan Avenue and Discovery Road (Hastings Avenue to 19th Street). Provide assistance to the City Manager, Council, and citizens to examine and adopt a City Transportation Plan 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. City of Port Townsend77 Public Works Administration and Engineering Continue planning for the relocation of the Police Department from its current site. Initiate planning efforts for improvements to the 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. Continue search for grant funding opportunities and low interest loans in conjunction with the City’s capacity to finance the loans. 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 rate-payers money. Update 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. City of Port Townsend78 City of Port Townsend Fund Summary Public Works Admin and Engineering Fund BudgetBudget YearYearIncrease 20092008<Decrease> Revenues By Source Interfund Services1,269,096$ 1,114,113$ 154,984$ General Fund support- - - Total Revenues1,269,096$ 1,114,113$ 154,984$ Expenditures By Program Administration331,014$ 280,255$ 50,759$ Engineering Services877,987 830,682 47,305 Total Expenditures1,209,001$ 1,110,938$ 98,063$ Expenditures by Object Personnel962,705$ 882,185$ 80,520$ Operating Expenditures122,250 120,805 1,445 Interfund Charges119,046 102,948 16,098 Capital Outlay5,000 5,000 - Total Expenditures1,209,001$ 1,110,938$ 98,063$ Actual Beginning Fund Balance3,175$ -$ 3,175$ Increase<Decrease> in Fund Balance60,095 3,175 56,920 Estimated Ending Fund Balance63,270$ 3,175$ 60,095$ City of Port Townsend79 Community Services Fund - City Parks Department Mission: To develop, operate and maintain parks and other facilities in accordance with the Park and Recreation Functional Plan. 2009 Goals and Objectives Goal: Provide facilities for the public that are aesthetically pleasing, well- maintained and safe. Continue a preventative maintenance and work order system to improve efficiencies and allow better accounting of work activities. Expand Park resources to facilitate increased management and maintenance of City Park facilities. Increase emphasis on maintenance of City trails and facility landscaping. Goal: Provide play equipment that is well maintained in an environment that addresses safety concerns. Review the condition of all play equipment at least once a month and replace or repair any equipment that presents a safety hazard. Monitor the depth and condition of the surfacing under the equipment for fall protection. Renew or replace surfacing material when and if necessary. Goal: Maintain current plans related to the operation of City parks. Update the existing Parks, Recreation and Open Space Functional Plan to reflect current conditions and interests of the park users. Re-establish the Parks and Recreation Advisory Board. City of Port Townsend80 Community Services Fund - Municipal Pool Department Mission Statement The mission of the Municipal Pool is to develop and provide safe, broad-based aquatic programs and facilities that are responsive to the needs and interests of all citizens of Port Townsend. 2009 Goals and Objectives Goal: Provide a safe and healthy environment for all aquatic activities. • Maintain a full cadre of trained, responsible lifeguards and instructors. • Operate the pool and facility in accordance with all appropriate health and safety laws and regulations. • Improve the physical condition of the pool through increased maintenance efforts. Goal: Provide programs for the wide range of interests in Port Townsend. Optimize the use of the limited aquatic facilities to maximize opportunities for all potential pool users. Goal: Provide the most efficient management of pool operations and facilities possible. • Develop intermediate and long-range plans for the future of aquatic activities in Port Townsend in conjunction with the School District, other governmental organizations, and citizen interest groups such as Make Waves. • Work with the School District to improve facility maintenance and operations with emphasis on energy saving opportunities. • Continue improvement of pool business practices to ensure proper accountability of funds and to seek further efficiencies. City of Port Townsend81 City of Port Townsend Fund Summary Community Services Fund BudgetBudget YearYearIncrease 20092008<Decrease> Revenues By Source General Fund support1,073,060$ 724,166$ 348,894$ Charges for services - pool93,000 99,000 (6,000) Rental income7,000 10,000 (3,000) Miscellaneous event revenues6,000 6,000 - Donations- - - Total Revenues1,179,060$ 839,166$ 339,894$ Expenditures By Program Contract Community Service Providers168,600$ 83,005$ 85,595$ Parks Maintenance489,635 284,758 204,877 Recreation118,000 91,564 26,436 Pool277,153 236,645 40,508 Interfund Charges110,017 77,366 32,651 Events Coordination- 61,814 (61,814) Total Expenditures1,163,405$ 835,152$ 328,253$ Expenditures by Object Personnel541,163$ 406,923$ 134,240$ Operating Expenditures581,742 427,729 154,013 Interfund Loan Repayments40,000 - 40,000 Capital Outlay500 500 - Total Expenditures1,163,405$ 835,152$ 328,253$ Actual Beginning Fund Balance4,014$ 0$ 4,014$ Increase<Decrease> in Fund Balance15,655 4,014 11,641 Estimated Ending Fund Balance19,669$ 4,014$ 15,655$ Estimated Ending Fund Balance reserve1.7%0.5% Note 1: Prior to 2005, the Community Services Fund was included as various departments of the General Fund. City of Port Townsend82 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 five general government Councilmanic bonds outstanding totaling $7,431,862. 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. In 2005, the city issued $1,525,000 in limited tax general obligation bonds for the construction of the city hall annex building and remodel of old city hall as City of Port Townsend83 General Government Debt Service authorized by Ordinance 2908. 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. On July 1 2008, the city issued $7,500,000 in limited tax general obligation bonds for the construction of city street and park facility improvements as authorized by Ordinance 2978. The source of monies to repay the debt service for this issue comes from a portion of the city’s general property tax levy, real estate excise tax revenues, and hotel/motel tax revenues. Accompanying the debt service information is a schedule that computes the city’s legal debt limitation as established by state law. City of Port Townsend84 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 in 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 ¼ 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 to the utility as authorized by Ordinance 1798. The source of monies to repay the City of Port Townsend85 Utility Debt Service 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. 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 $115,000 of the remaining 1978-Series B revenue bonds and most of the 1992 revenue bonds. The refunding issued produced significant savings in future interest costs to the utility ratepayers. The source of monies to repay the debt service for this issue comes from the revenues of the utility. The utility debt service payments for the revenue and revenue refunding bonds are budgeted in a utility debt service fund as listed below. The debt service payments for the State trust and revolving loans are budgeted as a debt service line item in the Water/Sewer Fund. A debt service fund for the State loans is not necessary. City of Port Townsend86 City of Port Townsend General Government Debt Service Debt Service 2009 TotalTotalTotal YearPrincipalInterestDebt Service 2009351,800 641,070 992,870 2010367,920 628,971 996,891 2011383,401 615,571 998,972 2012393,000 601,560 994,560 2013390,000 586,573 976,573 2014410,000 570,548 980,548 2015425,000 553,187 978,187 2016445,000 536,213 981,213 2017460,000 517,750 977,750 2018480,000 498,245 978,245 2019505,000 476,665 981,665 2020525,000 453,455 978,455 2021550,000 429,310 979,310 2022580,000 403,900 983,900 2023740,000 377,108 1,117,108 2024555,000 345,073 900,073 2025575,000 321,633 896,633 2026380,000 297,350 677,350 2027395,000 281,580 676,580 2028410,000 264,398 674,398 2029430,000 246,563 676,563 2030445,000 227,858 672,858 2031465,000 208,500 673,500 2032490,000 187,808 677,808 2033510,000 166,003 676,003 2034535,000 143,308 678,308 2035555,000 119,500 674,500 2036585,000 91,750 676,750 2037610,000 62,500 672,500 2038640,000 32,000 672,000 - Totals14,586,121$ 10,885,944$ 25,472,065$ City of Port Townsend87 CITY OF PORT TOWNSEND Fund Summary G.O. Bond Fund BudgetBudget YearYearIncrease 20092008<Decrease> Revenues By Source Property Taxes100,000$ 100,000$ -$ Investment Interest340 2,360 (2,019) Intergovernmental Charges60,000 60,000 - Operating Transfers- In832,872 645,447 187,425 Total Revenues993,212$ 807,807$ 185,406$ Expenditures Debt Service Principal351,800$ 345,741$ 6,059$ Debt Service Interest641,071 453,449 187,622 Professional Services1,000 1,000 - Total Expenditures993,871$ 800,190$ 193,681$ Estimated Beginning Fund Balance11,342$ 3,725$ 7,617$ Increase<Decrease> in Fund Balance(659) 7,617 (8,275) Estimated Ending Fund Balance10,683$ 11,342$ (659)$ City of Port Townsend88 City of Port Townsend Utility Debt Service Debt Service 2009 State Loans Total TotalTotalTotalTotalTotalTotal YearPrincipalInterestDebt ServiceYearPrincipalInterestDebt Service 2009266,527 29,967 296,494 2009545,000 78,570 623,570 2010267,133 27,708 294,841 2010575,000 54,500 629,500 2011267,748 25,440 293,188 2011455,000 27,710 482,710 2012268,372 23,163 291,535 201215,000 6,500 21,500 2013269,006 20,876 289,882 201315,000 5,750 20,750 2014269,649 18,580 288,229 201420,000 5,000 25,000 2015270,302 16,274 286,576 201520,000 4,000 24,000 2016270,965 13,958 284,923 201620,000 3,000 23,000 2017271,637 11,633 283,270 201720,000 2,000 22,000 2018272,320 9,297 281,617 201820,000 1,000 21,000 2019228,295 6,951 235,246 Totals1,705,000$ 188,030$ 1,893,030$ 2020169,404 5,042 174,445 2021170,118 3,718 173,835 2022115,566 2,383 117,949 202349,600 1,314 50,914 202450,347 567 50,914 Totals3,476,989$ 216,870$ 3,693,860$ Revenue and Refunding Bonds Total City of Port Townsend89 CITY OF PORT TOWNSEND Fund Summary Water/Sewer Bond Funds Debt Service BudgetBudget YearYearIncrease 20092008<Decrease> Revenues By Source Investment Interest22,129$ 21,182$ 947$ Operating Transfers- In from Water Utility66,987 66,318 670 Operating Transfers- In from Sewer Utility557,833 560,558 (2,725) Total Revenues646,949$ 648,057$ (1,108)$ Expenditures Debt Service Principal545,000$ 525,000$ 20,000$ Debt Service Interest78,570 100,875 (22,305) Professional Services1,000 1,000 - Total Expenditures624,570$ 626,875 (2,305)$ Estimated Beginning Fund Balance580,714$ 559,533$ 21,182$ Increase<Decrease> in Fund Balance22,379 21,182 1,197 Estimated Ending Fund Balance603,093$ 580,714$ 22,379$ City of Port Townsend90 City of Port Townsend91 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 funds 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, City of Port Townsend92 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. 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. City of Port Townsend93 CITY OF PORT TOWNSEND Fund Summary Capital Improvement Fund BudgetBudget YearYearIncrease 20092008<Decrease> Revenues By Source Real Estate Excise Tax #1200,000$ 220,000$ (20,000)$ Real Estate Excise Tax #2200,000 220,000 (20,000) Federal Grants1,610,000 - 1,610,000 State Grants555,000 - 555,000 State Grants - CIF550,000 - 550,000 State Grants - WSDOT456,300 - 456,300 State Grants-Transportation Improvement Board1,800,000 440,000 1,360,000 State Grants-Sims Way Signal- - - Public Works Trust Fund Loans- - - Local Improvement District Proceeds4,600,000 - 4,600,000 Investment Interest- - - Miscellaneous Income- 86,000 (86,000) Interfund Transfer-in Street Fund111,000 149,000 (38,000) 2008 Bond Proceeds6,779,000 540,000 6,239,000 Other Financing1,450,000 - 1,450,000 Donations 22,000 18,000 4,000 Total Revenues 18,333,300$ 1,673,000$ 16,660,300$ Capital Project Expenditures Personnel-$ -$ -$ Building & Structures1,466,000 - 1,466,000 Streets Capital Improvements12,337,193 1,646,066 10,691,127 Parks Capital Improvements2,616,100 10,000 2,606,100 Vessel Removal-RR Trestle- - - Operating Transfer 2002 Bond Payment27,693 31,292 (3,599) Operating Transfer 2003/2004 Bond Payment- - - Operating Transfer 1999 Bond Payment21,745 24,687 (2,942) Operating Transfer 2005 Bond Payment91,133 92,108 (975) Operating Transfer 2008 Bond Payment73,172 - 73,172 Interfund Charges- 2,500 (2,500) Intergovernmental Loans - Recreation Center25,000 25,000 - Miscellaneous Expense- - - Total Expenditures 16,658,036$ 1,831,653$ 14,826,383$ Estimated Beginning Fund Balance244,014 7,044,909 (6,800,895)$ Increase<Decrease> in Fund Balance 1,675,264 (158,653) 1,833,917 Estimated Ending Fund Balance1,919,278$ 6,886,256$ (4,966,978)$ City of Port Townsend94 CITY OF PORT TOWNSEND Fund Summary Water/Sewer Capital Improvement Fund BudgetBudget YearYearIncrease 20092008<Decrease> Revenues By Source Investment Interest35,148$ 1,922$ 33,226$ Utility Local Improvement District Proceeds325,000 - 325,000 Operating Transfers-In from Water Fund625,000 143,000 482,000 Operating Transfers-In from Sewer Fund750,000 726,000 24,000 Operating Transfers-In from SDC Fund490,000 550,000 (60,000) Miscellaneous- - - Total Revenues 2,225,148$ 1,420,922$ 804,226$ Capital Project Expenditures General Fund Overhead Expenditures301,450$ 26,000$ 275,450$ Improvements - Water841,500 60,000 781,500 Improvements - Sewer 2,173,000 200,000 1,973,000 Total Expenditures3,315,950$ 286,000$ 3,029,950$ Estimated Beginning Fund Balance1,171,594$ 36,672$ 1,134,922$ Increase<Decrease> in Fund Balance(1,090,802) 1,134,922 (2,225,724) Estimated Ending Fund Balance 80,792$ 1,171,594$ (1,090,802)$ Note: 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. City of Port Townsend95 Water/Facilities/Equipment Divisions Maintenance Workers/Operators (4 FTE) Seasonals (0.7 FTE) Water Crew ChiefWater Resources Crew Chief Mechanic Maintenance Worker Equipment & Facilities Crew Chief Operations Manager Water & Facilities Public Works Director City Manager City of Port Townsend96 Street/Sewer/Storm Divisions Biosolids/Compost Treatment Operators (2 FTE) Biosolids Composting Facility Wastewater Treatment Operators (3 FTE) Wasterwater Treatment Facility Wastewater Treatment Equipment Operators (4 FTE) Maintenance Worker (1 FTE) Seasonal Part time (1.5 FTE) Street/Sewer/Storm Crew Chief Operations & Maintenance Manager Street/Sewer/Storm Public Works Director City Manager City of Port Townsend97 Water/Sewer Utility Fund Water Utility Division Mission Statement: The water utility shall provide a safe, reliable water supply that meets all federal and state standards and shall provide high quality service to its customers. Goals for 2009 • The water utility will stay informed on state and federal issues and regulatory trends. • The utility will plan for compliance with new regulations on water quality. • The utility will stay involved in the regional water resource planning process. • The water utility will obtain special use permit renewals from the U.S. Forest Service. • The water utility will concentrate capital improvement programs on areas identified as having deficient fire protection and restricted flow. • The water utility will improve its cross connection control program. Water Distribution Year 2008 accomplishments • Reliably delivered safe clean drinking water to 4,661 taps / 8,500 customers at up to 2,000,000 gallons per day. • Reliably delivered safe clean drinking water to Fort Worden State Park and to P.U.D. Number One of Jefferson County. • Accurately read 4,661 meters each month. • Flushed the entire distribution system to remove accumulated sediment and stale water. • Installed 47 new water taps and meters. • Installed 199 replacement meters. • Repaired 5 water main breaks. • Installed 10 new fire hydrants. • Replaced 1019 feet of old, undersized, galvanized water main. • Tested flow and residual pressure on 684 fire hydrants. • Completed an inventory of cross connection control devices. • Performed extensive valve maintenance • Purchased new leak detection equipment Water Quality and Treatment • Treated an average of 15 million gallons per day. • Delivered an average of one million gallons a day to the distribution system and 14 million gallons a day to Port Townsend Paper Company. • Continued extensive, required monitoring and testing programs to maintain and document water quality, at the source, after treatment, and in the distribution system. • Continued required watershed control program in cooperation with the U.S. Forest Service. • Continued to meet the stringent water quality criteria for avoidance of filtration. • Continued participation in regional water resource planning efforts. City of Port Townsend98 Water/Sewer Utility Fund • Continued the process for renewal of our U.S. Forest Service special use permits. City of Port Townsend99 Water/Sewer Utility Fund Wastewater Collection Division (In conjunction 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 Objectives 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 three month, six-month and annual sewer 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. 2008 Accomplishments Cleaned all sewer lines on the list of problem lines that require a three month, six-month and annual cleaning schedule. Cleaned 25 % of one of the five basins as identified in the five year cleaning program. Root cut approximately 2,500 feet of problem sewer lines. Performance Indicators 2006 2007 2008 as of 10/31/2008 2009 Est. Number of citizen concern/requests received 25 28 10 15 Number of feet of line cleaned on 6 month schedule 7,500 7,500 7,500 7,500 Maintenance holes installed/rebuilt 0 3 1 6 Complete cleaning of one sewer basin (five year program) 25% 25% 25% 50% Length of sewer lines (feet) performed root cutting 1,000 2,000 2,500 3,000 Length of sewer lines (miles) in the city 73.47 73.95 74.4 76 Hours spent on televising sewer lines (inspecting) 90 120 100 100 City of Port Townsend100 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 Objectives 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. 2008 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 failures in our system. • Received operations award for 2007 from the Washington State Department of Ecology for 10 years straight of exemplary performance in the operation of the City’s Wastewater Treatment and Collection systems. • Successfully passed both (2/year) lab accreditation performance evaluation studies in order to maintain our lab accreditation. • Changed odor control carbon at the Gaines Street Lift Station. • Replaced valves at the Port Lift Station. City of Port Townsend101 Water/Sewer Utility Fund Performance Indicators 2006 2007 2008 as of 10/31/08 2009 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 based on the new rating of the facility (2) 67.9 % 63.75 % 61.9 % 65 % Wastewater treatment facility capacity (% used) BOD based on the new rating of the facility (2) 65.8 % 65.7 % 67.7 % 68 % Wastewater treatment facility capacity (% used) TSS based on the new rating of the facility (2) 56.8 % 58.0 % 55.1 % 59 % Average flow rate per day (million gallons) 0.977 0.918 0.892 0.980 Cost to treat the wastewater (per gallon) $ 0.0034$ 0.0052$ 0.0031 $ 0.0040 Population from OFM (Facility is rated for 12,000 people) 8,820 8,865 8,925 8,950 (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. City of Port Townsend102 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. 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. 2008 Accomplishments The facility has been operated within the State Waste Discharge permit limits. To 10/31/2008 we have produced three batches of compost for distribution to the public. To 10/31/2008 we have sold 3,904.5 cubic yards of compost to the public. Have provided 336 cubic yards of compost for general City use and City projects. Also donated 41 cubic yards to community projects. For a total of 4,281.50 cubic yards of compost distributed in 2008. As of 10/31/2008 we have received 630,754 gallons of septage. This is an increase of 20.2 % over the total for all of 2007. Started charging for yard waste materials as of October 20, 2008 to help offset the cost of processing and handling of the yard waste materials coming into the facility. Bid out for replacement compost mixer and received two bids. The low bidder was Roto-Mix for the amount of $84,782.89. The mixer will be delivered in 2009. City of Port Townsend103 Water/Sewer Utility Fund Performance Indicators 2006 2007 2008 as of 10/31/08 2009 Est. Oversee the treatment facility within the N.P.D.E.S. permit limits. (1) 100% 100% 100% 100% To produce class "A" compost for distribution to the public with a goal of having at least three sale events during the year. Batches produced are: 2 2 3 3 Septage received (Gallons) 265,251525,112 630,754 650,000 Dry Tons of biosolids processed 247 250 231 250 Yard Waste Received (Tons) 6,728.136,758.26 4,458 as of 9/30/08 5,000 Finished Compost Produced (cubic yards) 2,188 4,673.5 3,800 3,500 (1) N.P.D.E.S. is National Pollution Discharge Elimination System. City of Port Townsend104 Water/Sewer Utility Fund Solid Waste Utility Function: To provide efficient solid waste collection for the residents of Port Townsend with uniform, managed collection for the preservation of public health and safety. The Solid Waste Utility collection and billing services are contracted to DM Disposal, Inc. Customer charges are collected to recover the costs of this service contract and the costs associated with the disposal of solid waste at the Jefferson County Waste Management Facility. The contractor bills the customers directly for the services provided based upon the current contract agreement rates. Goals and Objectives Goal: Provide an efficient and cost-effective solid waste collection system that meets essential health standards to preserve sanitary conditions throughout the city. Goal: To promote curbside recycling as a way to reduce the city’s waste stream to solid waste landfills. 2008 Accomplishments Continued to provide the administrative functions needed by the Public Works Department and the city finance department in the management of the agreement between the City and DM Disposal, Inc. City of Port Townsend105 CITY OF PORT TOWNSEND Fund Summary Water/Sewer Utility Fund BudgetBudget YearYearIncrease 20092008<Decrease> Revenues By Source Revenues from Utility Sales4,181,178$ 4,099,194$ 81,984$ Miscellaneous Operating Revenues109,040 39,000 70,040 Engineering Fees- - - Investment Interest97,670 143,357 (45,687) Biosolids Compost20,400 20,000 400 SDC Residual Equity Transfers- 100,000 (100,000) Water/Sewer Latecomer Fees6,000 6,000 - System Development Charges- - - Total Revenues 4,414,288$ 4,407,551$ 6,737$ Expenditures by Program Utility Billing421,691$ 405,156$ 16,535$ City Water Operations2,011,388 1,363,287 648,100 City Water Supply460,107 417,516 42,592 Wastewater Treatment1,971,565 1,912,301 59,264 Wastewater Collection1,407,365 1,160,707 246,658 Biosolids462,112 461,038 1,074 Water Resources 105,270 96,445 8,825 Total Expenditures6,839,499$ 5,816,450$ 1,023,048$ Expenditures by Object Personnel1,538,250$ 1,430,447$ 107,803$ Supplies & Services781,836 759,494 22,342 Utility Taxes132,022 126,813 5,209 Intergovernmental Services11,500 11,500 - Interfund Services1,439,258 1,156,018 283,240 Equipment Rental345,670 376,506 (30,836) Debt Service921,313 925,022 (3,710) Transfers Out 1,425,000 919,000 506,000 Capital Outlay 244,650 111,650 133,000 Total Expenditures 6,839,499$ 5,816,450$ 1,023,048$ Estimated Beginning Fund Balance3,255,663$ 4,664,562$ (1,408,899)$ Increase (Decrease) in Fund Balance(2,425,211) (1,408,898) (1,016,313) Estimated Ending Fund Balance 830,452$ 3,255,664$ (2,425,212)$ City of Port Townsend106 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 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. 2008 Accomplishments • Cleaned 80% 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. • Mowed froggy bottoms storm water basin two times to maintain growth and noxious weeds. Performance Indicators 2006 2007 2008 as of 10/31/08 2009 Est. Number of citizen concerns received 37 29 13 15 Number of catch basins cleaned (in percent) 90 90 80 90 Number of Catch Basins (new or replaced) 60 40 2 10 Miles of street shoulders pulled for storm water control 1.0 0.5 0.75 2 Storm water piping installed, new or replaced, (Feet) 200 263 800 800 Number of catch basins in the storm water system 1231 * 1181 * 1183 1190 * = Updated information in the GIS System. City of Port Townsend107 CITY OF PORT TOWNSEND Fund Summary Stormwater Utility Fund BudgetBudget YearYearIncrease 20092008<Decrease> Revenues By Source Revenues from Utility Sales522,000$ 466,809$ 55,191$ Engineering Fees4,000 4,000 - Investment Interest22,000 22,000 - Miscellaneous Receipts- - - State Grant- - - - Total Revenues 548,000$ 492,809$ 55,191$ Expenditures by Program Stormwater Operations540,981$ 507,398$ 33,582$ Capital Improvement Projects 245,000 220,000 25,000 Total Expenditures 785,981$ 727,398$ 58,582$ Expenditures by Object Personnel259,447$ 240,261$ 19,186$ Supplies & Services22,248 22,918 (670) Utility Taxes7,830 16,779 (8,949) Interfund Services179,354 135,774 43,579 Equipment Rental72,102 91,666 (19,564) Debt Service- - - Capital Outlay 245,000 220,000 25,000 Total Expenditures 785,981$ 727,398$ 58,582$ Estimated Beginning Fund Balance273,727 508,317 (234,589)$ Increase<Decrease> in Fund Balance(237,981) (234,589) (3,391) Estimated Ending Fund Balance 35,747$ 273,727$ (237,981)$ City of Port Townsend108 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. City of Port Townsend109 CITY OF PORT TOWNSEND Fund Summary Transmission Line Replacement Fund BudgetBudget YearYearIncrease 20092008<Decrease> Revenues By Source Operating Transfers-in50,000$ 50,000$ -$ Interfund Loan Repayments65,000 - 65,000 Investment Interest 118,174 142,076 (23,902) Total Revenues 233,174$ 192,076$ 41,098$ Expenditures by Program Capital Improvements5,000$ -$ 5,000$ Interfund Loan to Golf Course125,000 - 125,000 Operations 28,000 10,000 18,000 Total Expenditures 158,000$ 10,000$ 148,000$ Expenditures by Object Professional Services25,000$ 5,000$ 20,000$ Interfund Charges3,000 5,000 (2,000) Interfund Loans Issued125,000 - 125,000 Capital Outlay 5,000 - 5,000 Total Expenditures 158,000$ 10,000$ 148,000$ Estimated Beginning Fund Balance3,470,361$ 3,288,285$ 182,076$ Increase<Decrease> in Fund Balance75,174 182,076 (106,902) Estimated Ending Fund Balance 3,545,535$ 3,470,361$ 75,174$ City of Port Townsend110 Equipment Rental Fund Equipment Rental Fund has two divisions 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 vehicle and heavy equipment rental, repair, 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 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. City of Port Townsend111 CITY OF PORT TOWNSEND Fund Summary Equipment Rental and Revolving Fund BudgetBudget YearYearIncrease 20092008<Decrease> Revenues By Source Revenues from Equipment Rentals-Fleet865,461$ 870,513$ (5,052)$ Revenues from Equipment Rentals-IT162,108 149,767 12,341 Sale of Surplus Equipment- - - Interfund Loan Repayments25,000 - 25,000 Miscellaneous Receipts5,000 70,602 (65,602) Investment Interest 26,337 9,813 16,525 Total Revenues 1,083,906$ 1,100,695$ (16,788)$ Expenditures by Program Operations and Maintenance-Fleet Division555,421$ 513,718$ 41,703$ Operations and Maintenance-Information Tech Division123,910 113,371 10,539 Capital Asset Additions-Fleet Division150,000 145,000 5,000 Capital Asset Additions-Information Tech Division 83,725 69,466 14,259 Total Expenditures 913,056$ 841,555$ 71,501$ Expenditures by Object Personnel219,446$ 208,322$ 11,124$ Supplies & Services216,476 214,855 1,621 Interfund Services243,409 203,912 39,497 Capital Outlay 233,725 214,466 19,259 Total Expenditures 913,056$ 841,555$ 71,501$ Estimated Beginning Fund Balance763,178$ 504,039$ 259,139$ Increase<Decrease> in Fund Balance 170,850 259,139 (88,289) Estimated Ending Fund Balance934,028$ 763,178$ 170,850$ City of Port Townsend112 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 established to carry out the terms of the donation, devise or bequest if within the powers granted by law (Ordinance 2016 and 1933). City of Port Townsend113 CITY OF PORT TOWNSEND Fund Summary Memorial Fund BudgetBudget YearYearIncrease 20092008<Decrease> Revenues By Source Contributions and Donations-$ -$ -$ Investment Interest 154 840 (686) Total Revenues 154$ 840$ (686)$ Expenditures by Program Operations & Maintenance-$ 18,000$ (18,000)$ Capital Improvements 3,000 - 3,000 Total Expenditures 3,000$ 18,000$ (15,000)$ Expenditures by Object Professional Services-$ -$ -$ Capital Outlay 3,000 18,000 (15,000) Total Expenditures 3,000$ 18,000$ (15,000)$ Estimated Beginning Fund Balance3,851$ 21,010$ (17,160)$ Increase<Decrease> in Fund Balance(2,846) (17,160) 14,314 Estimated Ending Fund Balance1,005$ 3,851$ (2,846)$ City of Port Townsend114 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 five remaining Fire Department retirees covered under this pension system (five persons are entitled to pension benefits and four are entitled to medical benefits). The remainder of the Fire Department firefighters are covered under the State’s Retirement system. City of Port Townsend115 CITY OF PORT TOWNSEND Fund Summary Firemen's Pension Fund BudgetBudget YearYearIncrease 20092008<Decrease> Revenues By Source Real Property Tax73,000$ 73,000$ -$ Fire Insurance Premium Tax- 7,222 (7,222) Investment Interest 9,713 12,404 (2,691) Total Revenues 82,713$ 92,626$ (9,913)$ Expenditures by Program Pension Benefits 78,702$ 83,600$ (4,898)$ Total Expenditures 78,702$ 83,600$ (4,898)$ Expenditures by Object Professional Services-$ 7,000$ (7,000)$ Interfund Services7,155 7,600 (445) Pension Benefits 71,547 69,000 2,547 Total Expenditures 78,702$ 83,600$ (4,898)$ Estimated Beginning Fund Balance323,757$ 314,731$ 9,026$ Increase<Decrease> in Fund Balance4,011 9,026 (5,015) Estimated Ending Fund Balance327,768$ 323,757$ 4,011$ City of Port Townsend116 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. City of Port Townsend117 CITY OF PORT TOWNSEND Fund Summary Golf Course Fund BudgetBudget YearYearIncrease 20092008<Decrease> Revenues By Source Contributions and Donations-$ -$ -$ Facility Rentals - Long Term20,000 20,000 - Interfund Loans Received125,000 - 125,000 Investment Interest 13 400 (387) Total Revenues 145,013$ 20,400$ 124,613$ Expenditures by Program Operations & Maintenance12,500$ 1,000$ 11,500$ Capital Improvements 125,000 27,000 98,000 Total Expenditures 137,500$ 28,000$ 109,500$ Expenditures by Object Professional Services-$ -$ -$ Capital Outlay 137,500 28,000 109,500 Total Expenditures 137,500$ 28,000$ 109,500$ Estimated Beginning Fund Balance421$ 8,021$ (7,600)$ Increase<Decrease> in Fund Balance7,513 (7,600) 15,113 Estimated Ending Fund Balance 7,934$ 421$ 7,513$ City of Port Townsend118 NW Maritime Fund The city established the NW Maritime Fund to account for any money or grants passed through to the NW Maritime Center non-profit organization. This is a trust fund established to carry out the terms of the grant and contract requirements for the fund. The city has been working with the NW Maritime Center for the development of the new center located on the city waterfront. Through these efforts, citizens will have perpetual access to these unique water front properties. City of Port Townsend119 CITY OF PORT TOWNSEND Fund Summary NW Maritime Agency Fund BudgetBudget YearYearIncrease 20092008<Decrease> Revenues By Source Federal Grants - Pass Through-$ -$ -$ State IAC grant - Pass Through- 154,000 (154,000) Investment Interest 4 0 3 Total Revenues 4$ 154,000$ (153,997)$ Expenditures by Program Subrecipient Pass Through-$ 154,000$ (154,000)$ Capital Improvements- - - Total Expenditures-$ 154,000$ (154,000)$ Estimated Beginning Fund Balance3$ 3$ 0$ Increase<Decrease> in Fund Balance4 0 3 Estimated Ending Fund Balance7$ 3$ 4$ City of Port Townsend120 Appendices Tax Levy Rate History Property Tax Levy Rate by Tax District 2009 Personnel Services Employee FTE (full time equivalences) staffing table 2009 Budget Ordinance No. 2995 2009 Property Tax Levy Ordinance No. 2991 Glossary City of Port Townsend121 City Tax Levy Rate History per $1,000 Assessed Value $0.00$0.50$1.00$1.50$2.00$2.50 1994199519961997199819992000200120022003200420052006200720082009 City of Port Townsend 122 Tax Levy Rate by District 2009County16% Conservation Futures0% Port2%PUD1% City General24% State24% Local School26% City EMS4% Hospital3% City of Port Townsend 123 Personnel Services The City of Port Townsend provides quality services and programs for its citizens with a responsive staff of 86 full-time and 32 part- time budgeted positions for 2009. Port Townsend has a competitive, market-based salary and benefits. Salary and benefits make up a major portion of the operating budgets. The General bargaining unit employees' wages are currently under negotiations for 2009. Police Union received a COLA increase of 4.6% in January 2009. Non-represented employees received a COLA increase of 4.6% in January 2009. 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%). 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 City Employee Total LEOFF II 5.46%(Jan-Jun) 8.83% 14.29% LEOFF II 5.23%(Jul-Dec) 8.45% 13.68% PERS I 8.0% 6.00% 14.00% PERS II 8.0% 4.61% 12.61% PERS III 8.0% variable variable The City of Port Townsend pays $866.17 for medical, dental and vision coverage for employees in the general government and $908.61 for police bargaining units. 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 (43 members, contract currently in negotiations for 2009-2011.) • Police Department Teamsters Local 589 (14 members, contract for 2008-2011.) 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. 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. City of Port Townsend124 Personnel Services Police Department Officer Salary Schedule Classification Minimum Hourly Maximum Hourly Police Sergeant $28.98 $32.80 Police Officer $24.55 $27.79 Library Department Non-represented Salary Schedule Classification Minimum Maximum Sr. Associate II $17.87 $22.34 Senior Associate $15.76 $19.70 Library Associate $14.59 $18.24 Library Assistant $13.09 $16.36 Processing Tech. $12.08 $15.10 Courier/Page $10.24 $12.80 Page $8.55 $10.69 General Government Salary Schedule 2008 rates-Union contract not settled Classification Minimum Hourly Maximum Hourly Maintenance Worker 1 $17.14 $19.40 Maintenance Worker 2 $18.15 $20.55 Equipment Operator 1 $20.42 $23.11 Equipment Operator 2 $20.88 $23.63 Treatment Plant Operator 1 $19.40 $21.96 Treatment Plant Operator 2 $20.88 $23.63 Lead Operator $23.73 $26.86 Crew Chief $25.76 $29.15 Water Resource Asset Mgr $25.76 $29.15 Park Assistant $17.05 $19.30 Park Crew Supervisor $22.79 $25.79 Mechanic $21.29 $24.10 Lifeguard $8.59 $9.72 Water Safety Instructor $10.82 $12.24 Classification Minimum Monthly Maximum Monthly Public Works Office Lead $21.65 $24.50 Public Works Assistant 1 $14.49 $16.40 Public Works Assistant 2 $15.86 $17.95 Engineering Assistant 3 $19.79 $22.40 GIS Coordinator $23.51 $26.60 Police Clerk $16.38 $18.54 Police Admin. Supervisor $20.24 $22.90 Event Coordinator $15.64 $17.70 Accounting Assistant 1 $17.37 $19.66 Accounting Assistant 2 $20.17 $22.82 Utility Billing Clerk $17.37 $19.66 Lead Utility Billing Clerk $19.38 $21.94 Project/Grant Accountant $21.80 $24.67 IS Network Administrator $29.11 $32.94 DSD Administrative Assist. $17.78 $20.12 Development Review Spec. $21.91 $24.79 Permit Coordinator $23.04 $26.07 Inspector $23.51 $26.60 Building Official $29.18 $35.67 *These tables represent base salaries and do not include longevity, or incentive pay. They may also not be currently staffed or filled. City of Port Townsend125 Personnel Services 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 $7881.60 $9852.00 Admin. Assistant $3339.96 $4174.95 City Attorney $6544.08 $8180.10 Legal Assistant $3248.03 $4060.04 City Clerk $4850.59 $6063.24 Deputy City Clerk $3944.62 $4930.78 DSD Director $6171.26 $7714.08 DSD Assist. Director $5545.44 $6931.80 Planning Director $6171.26 $7714.08 Senior Planner $5192.77 $6490.96 Planner 2 $4492.10 $5615.12 Public Works Director $6634.98 $8293.72 Operations Mgr Class 1 $4957.84 $6197.30 Operations Mgr Class 2 $5453.62 $6817.03 Finance Director $6616.61 $8270.76 Deputy Finance Director $4800.55 $6000.69 Payroll/Benefits Admin. $3538.23 $4422.79 Library Director $5484.90 $6856.12 Library Dept. Manager $4025.32 $5031.65 Associate Librarian $3419.32 $4274.15 Police Chief $6434.78 $8043.48 Deputy Police Chief $5324.54 $6655.67 City Engineer $5561.49 $6951.86 Project/Civil Engineer $4948.71 $6185.89 Develop. Review Engineer I $4986.05 $6232.56 Develop. Review Engineer II $5361.65 $6702.06 Project Manager $5528.29 $6910.36 Civil Engineer/EIT $4948.71 $6185.89 Pool Manager $3096.36 $3870.45 Public Safety Analyst $4053.14 $5066.42 Operations Mgr. - Parks $4957.84 $6197.30 City of Port Townsend126 City Staffing Authorization in FTE's Authorization in FTE (full-time equivalents)Department/Division19992000200120022003200420052006200720082009ChangeGeneral Fund:Mayor/Council 1.00.00.40.40.40.40.00.00.00.00.00.0 City Manager 1.02.02.12.82.02.02.02.02.02.02.00.0 City Attorney 2.61.52.12.12.02.02.02.02.02.02.00.0 Development Service Department8.98.57.57.87.98.08.08.08.08.05.2-2.8Planning Department 2.02.02.01.5-0.5 Finance 9.09.09.12.32.32.32.33.63.63.54.51.0 Police Administration 4.04.05.06.05.04.15.05.05.00.0 Police Operations 16.516.512.013.012.313.014.313.215.515.514.5-1.0 City Clerk 1.41.42.12.12.02.52.52.32.32.32.0-0.3 PEG TV Studio 0.00.00.00.30.30.30.30.00.00.00.00.0 City Events 0.00.00.00.00.00.00.01.01.01.00.0-1.0 City Facilities 0.60.00.00.20.30.30.31.31.31.32.31.0 Public Restrooms 0.30.00.00.00.00.00.00.00.00.00.00.0 Grant Administration 0.00.00.00.00.00.00.00.00.00.01.01.0 Subtotal - General Fund 41.338.939.335.034.436.836.739.542.642.539.9-2.6 Other Funds:Street 2.44.93.31.72.12.91.91.92.52.52.3-0.2 Fire/EMS 11.010.04.23.83.85.04.23.80.00.00.00.0 EMS 8.88.28.210.58.87.70.00.00.00.0 Parks Maintenance 3.53.72.02.53.34.03.33.33.33.35.32.0 Recreation *2.52.42.63.10.00.00.00.00.00.00.00.0Pool 4.56.23.73.74.54.14.54.94.14.54.70.2Public Works Administration5.04.13.12.12.02.02.02.02.02.02.00.0Public Works Engineering 7.56.05.04.56.55.38.37.37.88.510.52.0 Library 7.68.57.38.38.39.710.410.19.69.810.91.1 Capital Improvement 0.40.40.40.00.00.00.00.0 City of Port Townsend 127 City Staffing Authorization in FTE's Authorization in FTE (full-time equivalents)Department/Division19992000200120022003200420052006200720082009ChangeWater/Sewer: Utility Billing 5.55.55.55.54.64.63.73.70.0 Water Distribution 5.77.54.06.06.15.85.85.85.65.65.60.0 Water Quality 4.34.00.81.01.01.01.01.01.01.01.00.0 Wastewater Collection 2.31.51.71.72.53.32.53.23.23.23.20.0 Wastewater Treatment 3.53.53.33.33.64.63.33.33.33.33.30.0 Biosolids 2.52.52.32.32.32.32.32.32.32.32.30.0 Facilities Locates 1.50.50.00.00.00.00.00.00.00.0 Water Resources 0.91.01.01.01.01.01.01.01.00.0 Stormwater 2.31.51.73.33.84.53.42.82.83.83.80.0 Equipment Rental 2.32.02.01.81.51.51.52.52.52.52.50.0 Totals 108.2107.197.299.0100.5110.0106.7106.797.999.3101.72.5*This includes an average of seasonal employeesCity of Port Townsend 128 ORDINANCEN02995 AN ORDINANCE ADOPTINGTHEBUDGETFORTHECITYOFPORT TOWNSEND WASHINGTON FORTHE FISCAL YEARENDING DECEMBER 31 2009 WHEREAS the City Manager ofthe City ofPort TownsendWashington completed and placed onfile withthe City Clerk a proposedbudget andestimateofthe amount ofmonies required to meetthe public expenses bondretirementand interest reservefundsand expenses of government ofthe City forthefiscal year ending December 31 2009 the 2009 PreliminaryBudget and anotice was published thatthe City Councilwould meet onthe27thofOctober2008and 13th ofNovember2008and 17th ofNovember at the hour of 630 pmat City Hallforthe purpose of making and adopting a budget forthefiscal year 2009and giving taxpayers withinthe city limitsof the City an opportunity tobeheardaboutthe PreliminaryBudget and WHEREAS the City Councildid meetin City CouncilChambers on October 27 2008 and November 132008 and November 172008 andconsider the matterofthe2009 Preliminary Budget and WHEREAS the 2009 PreliminaryBudget does notexceedthelawfullimitof taxation allowed by law tobe levied onthe property withinthe City of PortTownsendfor the purposes setforthin the2009 Preliminary Budget andthe estimated expenditures in each fund set forthinthe 2009 Preliminary Budget are all necessary to carry onthe government of the City forfiscal year 2009 and are all necessary tomeet thevarious needsofthe Cityduring the period NOWTHEREFORE THECITYCOUNCILOFTHECITYOF PORT TOWNSENDWASHINGTON DOESORDAINASFOLLOWS Section1The budget forthe City of Port TownsendWashington forthefiscal year 2009 is herebyadopted at fendlevel asset forthinthe documententitled City of PortTownsendFinal Budget 2009three copies ofwhich areonfilewiththe City Clerk Section 2 Estimated resourcesincluding fundbalancesfor workingcapital for each separate fundofthe City ofPort Townsend and aggregate totalsforallsuchfunds combined forthe year2009 aresetforthin summary form below and are hereby appropriated for expenditure at thefundlevel during the year 2009 OPERATINGFUNDSAPPROPRIATION General 7392837 PublicWorksAdmin Engineering1209001 Library 897489 Community Services 1163405 FireEMSServices 1215888 Local Improvement District1 Local Improvement District 2 Drug Enforcement Ordinance 2991 City of Port Townsend129 OPERATINGFUNDS APPROPRIATION Contingency Street 945894 Lodging Tax 444583 CommunityDevelopment BlockGrant 50000 WaterSewer Utility 6839499 Stormwater Utility 785981 Equipment Rental913056 FiremensPension 78702 Operating FundSubtotals 21936335 CAPITALDEBT ANDTRUST FUNDS APPROPRIATION CapitalImprovement 16658036 SystemDevelopmentCharges 490000 TransmissionLine Replacement 158000 GODebtService 993871 1978WaterSewer Revenue Bond Fund 23750 19921998WaterSewer RevenueBondReserveFund 1992WaterSewerRevenue Bond Redemption 600820 Utility ConstructionFund 3315950 NW Maritime Agency 136500 GolfCourse 137500 Memorial3000 Capital DebtTrustFund Subtotals 22517427 GRANDTOTAL 44453762 Section3The City Clerk isdirected to transmit a certified copy ofthe City of PortTownsendFinal Budget 2009 to theOfficeofStateAuditorand totheAssociation of Washington Cities Section4This ordinanceshalltakeeffect upon its passageapproval and publication intheformand manner providedbylaw ADOPTED by the City Council of the City of Port TownsendWashington at a regularmeetingthereof held this first day ofDecember 2008 p Michelle Sandoval Mayor Attest Pamela Kolacy MMC City Cler Approved as to form J John WattsCity Attorney Ordinance 2995 City of Port Townsend130 ORDINANCENO2991 ANORDINANCEOFTHECITY OFPORTTOWNSEND FIXINGANDADOPTING 2009PROPERTY TAXLEVIESWITHAN INCREASEOFTWENTYSIXANDSEVEN TENTHSPERCENT 2670 FORTHE GENERALLEVYANDAN INCREASE OF ONEPERCENT 1 FORTHEEMERGENCY MEDICALSERVICESLEVY WHEREAS the City ofPort Townsendhas properlygiven noticeofthe public hearing held on October 202008 toconsiderthe City ofPortTownsendsGeneral FundLibraryFund Fireand Emergency MedicalServices Fund DebtServiceFund andFiremenPension Fund budget forthe2009calendar yearpursuant toRCW 8455120 and WHEREAS at an election held August 19 2008 the voters ofthe City ofPort Townsend approved by a largemajority a real property tax levy lidliftfor atotal authorized levy rateof 231 per thousand dollarsof assessed valuationIn accordance with City CouncilResolution 08019 theamounts collectedfromthe levy increase in theamountof 075 per thousand dollarsofassessed valuation are dedicated to be used solely for library purposes at all times andthe general fund amounts thathad previously supported the library are intendedfor the following purposes parks community services and capitalfacilities and WHEREAS inaccordancewith City CouncilResolution 08019 the City Council hascommittedto phase inthe levy lidlift overthreefiscal years 2009 levy rate of 194075 for librarypurposes 075 forfireservices per contract withFireDistrict No 1 and 044 forotherservices includingparkscommunity servicesand capital facilities 2010 levy rate of 216 and2011 levy rate of 231 per thousanddollarsof assessed valuation and WHEREAS the City ofPort Townsend after hearing andafter dulyconsidering allrelevantevidenceand testimony presented hasdetermined that the City of Port Townsend requires an increaseinreal property tax revenuefromthe previous year in addition to the increase inthevalueofstateassessed property inorder to discharge the expected expenses and obligations ofthe City ofPortTownsendandinitsbest interest NOW THEREFORE the City Councilofthe City ofPortTownsenddoesordain that anincreaseinthe regularproperty tax levy in additionto any amount resulting from the additionof new constructionand improvements to property and any increasein the valueof stateassessed property is hereby authorizedforthe2009 levy inamounts as follows Section 1 Thereis hereby levied upon alltaxable property inthe Cify ofPort Townsend for the year of 2009 the sumof 241782600 asa general tax levy which is a percentage increaseof 2670resulting in an increaseof 50951800 fromthe previous year 1Ordinance2991 City of Port Townsend131 Section2Thereis hereby levied upon alltaxable property inthe City ofPort Townsend forthe year of 2009 the sumof 39225338 asan emergency medical services property tax levy whichis a percentage increaseof 100l0resulting in an increase of 388370 fromthe previous year Section3Thisordinance shall takeeffect upon its passage approval and publication inthe formand manner provided by law Adoptedby the City Council of the City ofPort TownsendWashington at a regularmeeting thereof heldthistwentieth day of October 2008 Attest l c Pamela Kolacy MMC City Clerk Michelle SandovalMayor Approved as to form 1 John Watts City Attorney Ordinance 991 City of Port Townsend132 Glossary 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 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. City of Port Townsend133 Glossary 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 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 City of Port Townsend134 Glossary 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 Counc 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 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. City of Port Townsend135 Glossary 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 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 City of Port Townsend136 Glossary 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. 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 City of Port Townsend137 Glossary 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: (FAUS) 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. 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 City of Port Townsend138 Glossary 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 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 City of Port Townsend139 Glossary financed by others. LEASING: A financial technique whereby ownership of the project or 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 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 projects. OPERATING TRANSFER: Routine and/or recurring transfers of assets between funds. City of Port Townsend140 Glossary 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. 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 City of Port Townsend141 Glossary 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. REET: (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 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 City of Port Townsend142 Glossary 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. 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. City of Port Townsend143 Glossary 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. UATA: 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. City of Port Townsend144