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Home My WebLink About2010 Final BudgetCity of Port Townsend Final Budget 2010 Table of Contents City of Port Townsend Final Budget 2010 Page City Manager Budget Message........................................................................................................................1 City Officials...................................................................................................................................................5 Citizen Advisory Boards, Commissions, and Committees..............................................................................6 Fund Summary ...............................................................................................................................................8 Overview.......................................................................................................................................................10 Budget Policies..............................................................................................................................................10 General Fund ................................................................................................................................................18 General Fund Revenues and Expenditures ...................................................................................................19 General Fund Departmental Budgets General Fund Summary..............................................................................................................................24 Legislative – City Council..........................................................................................................................25 City Manager..............................................................................................................................................27 City Attorney..............................................................................................................................................30 City Clerk...................................................................................................................................................33 Development Services Department ...........................................................................................................36 Planning Department..................................................................................................................................40 Finance Department....................................................................................................................................41 Police Department......................................................................................................................................45 Facilities Maintenance................................................................................................................................48 Non-Departmental......................................................................................................................................50 PEG Access TV Studio ............................................................................................................................52 Grants Management ..................................................................................................................................54 Fund Equity Transactions...........................................................................................................................56 Special Revenue Funds Drug Enforcement Fund.......................................................................................................................58, 62 Contingency Fund................................................................................................................................58, 63 Community Development Block Grant Fund.......................................................................................58, 68 Lodging Tax Fund................................................................................................................................58, 67 System Development Charge Fund......................................................................................................59, 69 Community Services Fund (Service Providers, Parks, Recreation and Pool Departments).................60, 75 Street Fund...........................................................................................................................................61, 77 Fire and EMS Fund..............................................................................................................................60, 70 Library Fund.........................................................................................................................................60, 64 Public Works Administration and Engineering Fund...........................................................................60, 71 Debt Service Funds General Government Debt Service.............................................................................................................81 Utility Debt Service....................................................................................................................................83 Legal Statutory Debt Margin......................................................................................................................89 Capital Project Funds Capital Improvement Fund.........................................................................................................................90 Utility Construction Fund...........................................................................................................................91 Enterprise Funds & Trust Funds Water/Sewer Utility Fund...........................................................................................................................94 Stormwater Utility Fund.............................................................................................................................98 Transmission Line Replacement Fund.....................................................................................................100 Equipment Rental Fund............................................................................................................................102 Memorial Fund.........................................................................................................................................106 Firemen’s Pension and Relief Fund..........................................................................................................104 Table of Contents City of Port Townsend Final Budget 2010 Golf Course Fund........................................................................................................................................108 NW Maritime Center Fund..........................................................................................................................110 Appendices Budget Summary - Revenues, Expenditures and Fund Balances 2006-2010............................................113 City Property Tax Levy Rate History..........................................................................................................119 Property Tax Levy Rate by District ............................................................................................................120 Personnel Services.......................................................................................................................................121 Authorized Staffing Table FTE (Full Time Equivalences) Table................................................................123 Budget Ordinance No. 3028........................................................................................................................125 Property Tax Levy Ordinance No. 3027......................................................................................................128 Glossary.......................................................................................................................................................130 2010 CityManagersPreliminary Budget Memo Page 1 of4 V OF PORTTOy2City ofPortTownsend Office ofthe CityManager r 250 Madison St Suite 2 Port Townsend WA98368 360 3795047FAX 360 3854290 wt MEMORANDUM TO City Council City Clerk FROMDavid Timmons CityManager RE2010 CityManagersPreliminaryBudget DATENovember 12 2010 This messageaccompanies thedraft budget ordinancefor2010forall funds Key to this budget isthe process thatthe City Council established last year incorporating the levy lidlift grantedby thevotersin 2008The planning and development ofthe budget isbased upon theforecast and projections andschedulesestablished by the Council to implement the lid lift In plain terms the budget isbased upon athree year program With anyprogram there willbe adjustments The budget for 2010reflectsthe changes and adjustments tothethree year plan What follows arethe key bullet points to highlight those changes 1 The 2010 PreliminaryBudget is basically acloneof 2009 except for union contract requirements equipment andIT renta adjustments 2We have addedstafffor parks andmaintenance which is part of the Citys commitment forthe property tax levy lid lift passedby our voters in2008 3The CityAttorneybudget includes a request for a staff position for city prosecution servicesThis cost willbe partially offset by areduction in professional services 4 The Development Services Departmentbudget includes a request for astaff position for a Senior PolicyAnalyst TheCouncil has placed a special hold on any action to fiillthis position 5Wehave received requests from some of our community nonprofitproviders for budget support The current budgeted amountsdo not provide for increased fundingalthough almost allofthe providers requested increases 6 Our county interlocalcontracts continue to be a key budget concern for the CityThese contracts represent someof the largest expenses of the generalfund and atthistime although the county hasbeen reducing theirstafflevels whichwill City of Port TownsendFinal Budget 20101 2010 City ManagersPreliminary Budget Memo Page 2 of 4 affect our county services atthe sametime they are requestinghigher contributionsfrom the City 7Inthe City Council budget area wehadtoreinstitutethe County Auditors charges forvoter registration costs In 2009 this requires a supplemental item fortwo years ofvoter registration costs which wewere holding back pending a state audit Presently voter registration costs are about23000 peryear When wereceivethe County Auditors invoicefor these costs wewill present this as part ofthe 2009 budgetsupplemental 8This year we added new informationtothe budget detailthat was requested by Councilmembers a Supplemental line item changes havebeen incorporated intotheoverall budgetanalysis bFive year fund comparativeanalysis c MountainViewCommonscosts are bundled toshow all costs dAdebtservicescheduleis provided e Alineitemdetail is provided f Afullbreakdownof all payroll is provided g Adetailedscheduleofthe property tax levy is provided hAllocationofthe projectedlevy incomeis provided 9 For2010 weare changing how generalproperty tax collections are posted tothe FireEMS Fund Library Fund and the Community Services Fund Ratherthan posting a GeneralFund transfer ofthe general property taxes forthese funds we are directlydepositing thosetax collections into the variousfundsThisisthe same accounting method wehavebeen using fortheDebtServiceFundand the FiremensPensionFund Making this change willreducetheamountofdouble counting that occursto governmental funds and shouldbe less confusing to the mediaandcitizens 10 This budget also provides for repayment ofthe outstanding interfund loansthat were approved in previous years Our goal is to have those loansall repaid in thenext couple years 11No newdebt issues havebeen approved for 2009 or2010Pleasenotethe schedule provided shows thecurrent debt and sources of funds toretirethis debt Of special noteisthe approaching payoff of a majorutility debtforthe sewer plant This will help with ourneedtofund secondary disinfectionfiltration withinthecurrent ratebase 12The capitalbudgets arestill aworkin progress So many changes and new funding have recentlydeveloped that wearestill formulating construction budgets The capital budgetpresented is an attempt to balance what has occurredwithwhatwill carry overto 2010 anditwillneedtobefinalizedwhenall contributing factors are taken into consideration Special concerns which willaffect the2010 budget include the following General Fund City of Port TownsendFinal Budget 20102 2010 City ManagersPreliminary Budget Memo Page 3 of 4 Fire Costsfor Water ServiceAs wehave reported to Council a utility canno longer passalong coststotheratebasefor providing fireflowIt must be paidby the GeneralGovernment in this case the General Fund We are currentlyassessing this andatthistime wecannot predict or estimatethe outcomeand impact onthe 2010 budget County Contracts The Citycurrently contracts for services for JailCourt Animal Services and DrugAlcohol Prevention What weare experiencing is lower service levels provided but higher costs predicted in allservicesIn addition County parks within the City are being closedand we anticipate thiswill adverselyimpact the Citysbudget We are already getting requests from community members tointervene The County situation will create a difficult position for theGeneral Fund There are few mitigationoptions With a new City Prosecutor we may be able to manage law and justice costs better but anysavingsmay beoffset byhigher fee assessmentsAnimal Services hasfew options at this timeWe may beable to bring the DrugPrevention programs back in house but it is likely the County will protest as they have in the past Development ServicesWe have conservativelybudgetedagain for activities relating to development andrealestate activityby the private sectorThefirst quarter of next year willbe critical interms of real estate activity The budget hasassumed status quo inthis area so any increase wilt improve our budget situation CommunityDevelopment Fund The mostcritical piece here isthe implementation ofparks maintenance activity We arealso seeing atrickledown effect onthe needsof non profits which are feeling the impact of the economic situation ontheir funding sources inaddition the potential closure of County parks may have an impact onthis fund There areno discretionary fundsavailable asall funding is committed Projects for2009that will carry over encumbrancesfor 2010includeGoffCourse maintenance and facility and park land purchase Capital Funds Major initiatives will continue well into next yearUpper Sims and Downtown projects will worktheir way to completion Alsoscheduled to begin in2010 isthenext generation of projectsincludingsecondary disinfectionfiltration sewer extensions to theHoward Street CorridorLibrary seismic bracing anddowntown sidewalklids Allother funds remain status quo All Funds Payroll We are currentlynegotiating no COLA adjustment for 2010 The contractsinclude afloor 1 forPoliceand15for General Government There is no COLAfor nonbargaining employees Payroll allocationsinclude normal longevity r City of Port TownsendFinal Budget 20103 2010 City ManagersPreliminaryBudget Memo Page 4 of4 adjustments for employeesLongevity is an adjustment that reflects creditfor a combination of experience years of service performance orcertificationseducation Bargainingemployees are scheduledfor these adjustmentsby contract Non bargaining are adjusted based upon variousfactors including recommendations regardingexperience and performanceby a supervisor or the CityManager ITand Equipment Rental Throughout the budget are adjustments that reflect charges to departments fortheir respective costsforITand equipment assigned tothe department In a number of areas changes haveoccurred that reflect changes to inventory Each inventorieditemis classified and scheduled for replacement This includesitems that are original donated or acquiredby a grant Also it represents the shared costs of theframework to support each item including IT servers staff support mechanical parts fuel insurance etcWe do have separate schedules for each but they are not provided due tothe large volume of paperthe schedulestaketo print Thebudget as presented conformstoCouncil financial policy on reserves and contingencies Release of contingency fundsforother purposesmay only bedone through Councilaction Council actionisalso necessary toamendthe budget to releasefund reservesAsnotedabove theCouncil has retainedcontrolofthe Senior Policy Analyst position asa specialcontingency City of Port TownsendFinal Budget 20104 City Officials COUNCILMEMBERS Position #1 Michelle Sandoval Term expiring December 2013 Position #2 Catharine Robinson Term expiring December 2013 Position #3 Laurie Medlicott Term expiring December 2011 Position #4 George Randels Term expiring December 2011 Position #5 Mark Welch Term expiring December 2013 Position #6 David King Term expiring December 2011 Position # 7 Kris Nelson Term expiring December 2013 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 TownsendFinal Budget 20105 Citizens Advisory City of Port Townsend Citizen Advisory Boards, Commissions, Task Forces, Committees and Subcommittees (November 25, 2009) DESIGN REVIEW ADVISORY COMMITTEE (5) CIVIL SERVICE COMMISSION (3) VACANT Ronald V. Kosec Gary Kennedy (Vice-Chair) Gail A. Ryan Amy Dahlberg VACANT Ian Keith Guy Hupy (Chair) PLANNING COMMISSION (7 members) HISTORIC PRESERVATION COMMITTEE (5-7) SHORELINE AD-HOC COMMITTEE Steve Emery Gee Heckscher Jeffree Stewart (DOE) Julian Ray Michael Colbert Margie Schirato (WDFW) Bill LeMaster James Manier Sam Gibboney Monica Mick-Hager (Chair) Charles Paul, Chair Richard Berg Gee Heckscher Richard Berg David King VACANT Marsha Moratti Monica Mick-Hager Jerauld Fry Rosalind Russell Owen Fairbank Judy Surber (staff) UPTOWN DESIGN RELATED STRATEGIES COMMITTEE ARTS COMMISSION (up to 9) LODGING TAX ADVISORY COMMITTEE (11 voting members) Stanley Rubin (Chair) George Randels(elected official) Council Member (VACANT) Linda Davis Okazaki Sherri Hanke (at large) Julian Ray Kristine Morris Will O'Donnell (at large) Charles Paul Anne Kearson John MacElwee(recipient) Richard Berg VACANT Dave Robison (recipient) Mike Kenna VACANT Sue McIntire (recipient) Malcolm Dorn Nancy Rody Steve Shively (recipient)) Cappy Mathias Sherry Kack Cindy Hill Finnie(collector) Jeannie Moore Counsel Langley VACANT (collector) Susan or Mike Webb Tim Stover (recipient) Rick Sepler (staff) John Eissinger (collector) John Owens (facilitator) Jennifer MacGillonie, COC (ex-officio) Mark Cole,Main St. (ex-officio) NON-MOTORIZED TRANSPORTATION ADVISORY BOARD (9) PEG ACCESS COORDINATING COMMITTEE (8) LIBRARY ADVISORY BOARD (5-7) Chauncey Tudhope-Locklear John Watts Bill Maxwell Owen Fairbank David King Weston Eng Bly Windstorm Mark Welch Caitlin Harrison John Bodger Julian Ray Eileen Price Scott Walker Theresa Percy Fran Post Andrew Reding (Chair) Tom Opstad Benjamin Dow Pat Teal Pam Roberts Ken Dane Lowell Jons VACANT Jolly Wahlstrom VACANT (Producers Rep) City of Port TownsendFinal Budget 20106 Citizens Advisory ALTERNATIVE ELECTRIC MANAGEMENT COMMITTEE HOUSING ACTION PLAN NETWORK COMMITTEE CLIMATE ACTION COMMITTEE George Randels David Rymph VACANT Mark Welch Katherine Baril (Alt. Shelby Smith) Kees Kolff, Chair Larry Crockett VACANT Richard Dandridge BOCC appointment Sandy Hershelman Nora Burnfield Kees Kolff Craig Wier Denise Pranger Andrew Reding Susan Miller Taylor Beard Crispin Hollinshead Kees Kolff David Turissini Jeff Randall Cheryl Bozarth Tim Behrenfeld Communications/Fiberoptics appointment Phil Johnson Scott Walker Jerry Spieckerman George Randels Tom Opstad Bill Wise VACANT Stanley Willard Tribes appointment Steve Emery Larry Crockett Judy Surber (staff) deforest Walker Pete Rabb Energy Mgmt. appointment Joe Breskin Mark Welch Business/Local Economy Appt. Peter VonChristierson (Alt. Melinda Szatlocky) Jim Fritz Building Community Appointment Jamie Maciejewski John Austin Judy Surber (staff) City of Port TownsendFinal Budget 20107 City of Port Townsend Estimated Beginning Fund Balances Budget Overview 2010 1/01/20101/01/2011 Estimated20102010Beginning FundEstimatedEstimatedFund FundsBalanceRevenuesAppropriationBalance Operating Funds General Fund155,518$ 7,109,996$ 6,705,786$ 559,729$ Public Works Admin & Engineering Fund4,601 1,173,995 1,114,065 64,532 Library Fund40,979 997,523 988,071 50,431 Community Services Fund40,921 1,378,664 1,417,325 2,260 Fire & EMS Services Fund(0) 1,244,671 1,244,671 - Local Improvement District #135 - - 35 Local Improvement District #220 - - 20 Drug Enforcement2,543 2 - 2,545 Contingency Fund100,580 10,402 - 110,982 Street Fund25,135 753,519 759,189 19,466 Lodging Tax Fund28,332 350,113 370,333 8,112 Community Development Block Grant Fund150,841 10,754 100,000 61,595 Water Sewer Fund2,669,888 4,369,334 6,208,420 830,802 Stormwater Fund523,450 523,234 842,425 204,258 Equipment Rental Fund811,332 1,160,563 944,461 1,027,434 Firemen's Pension Fund337,514 39,666 105,012 272,167 Operating Fund Subtotals4,891,689$ 19,122,437$ 20,799,758$ 3,214,369$ Capital, Debt, & Trust Funds Capital Improvement Fund971,160 11,631,900 11,582,087 1,020,973 2008 Bond Construction Fund4,914,141 15,725 4,831,222 98,645 System Development Charges Fund277,626 171,329 365,000 83,954 Transmission Line Replacement Fund3,501,233 227,055 33,000 3,695,288 G.O. Debt Service Fund2,913 1,064,384 1,000,392 66,905 78 Water Sewer Revenue Bond Fund49,244 23,197 23,000 49,441 92/98 Water Sewer Revenue Bond Res. Fund469,462 1,878 - 471,340 92 Water Sewer Revenue Bond Red. Fund65,723 606,763 607,500 64,986 Utility Construction Fund205,642 965,323 1,078,000 92,965 NW Maritime Center Agency Fund2 136,500 136,500 2 Golf Course Fund6,546 20,196 13,200 13,543 Memorial Fund4,686 19 3,000 1,705 Capital, Debt, & Trust Fund Subtotals10,468,380$ 14,864,268$ 19,672,901$ 5,659,747$ Grand Totals15,360,069$ 33,986,705$40,472,658$ 8,874,116$ City of Port TownsendFinal Budget 20108 Comprehensive Budget-All FundsGeneral Fund, $5,548,837 General Fund Transfer - Debt Service, $171,000 General Fund Transfer - Interfund Loan Repayments, $120,405 General Fund Transfer - Community Services, $865,544 Public Works Admin & Engineering Fund, $1,114,065 Library Fund, $988,071 Community Services Fund, $1,417,325 Fire & EMS Services Fund, $1,244,671 Street Fund, $759,189 Lodging Tax Fund, $370,333 Community Development Block Grant Fund, $100,000 Water Sewer Fund, $6,208,420 Stormwater Fund, $842,425 Equipment Rental Fund, $944,461 Firemen's Pension Fund, $105,012 Capital Improvement Fund, $11,582,087 System Development Charges Fund, $365,000 Transmission Line Replacement Fund, $33,000 G.O. Debt Service Fund, $1,000,392 78 Water Sewer Revenue Bond Fund, $23,000 92 Water Sewer Revenue Bond Red. Fund, $607,500 Utility Construction Fund, $1,078,000 Golf Course Fund, $13,200 Memorial Fund, $3,000 Other, $6,705,786 City of Port Townsend Final Budget 2010 9 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 TownsendFinal Budget 201010 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 TownsendFinal Budget 201011 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 TownsendFinal Budget 201012 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 TownsendFinal Budget 201013 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 2010 is estimated at $15,000,000. 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 $1.88 per $1,000 of assessed valuation for 2010. 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 2010 2009 2008 2007 2006 2005 County $1.32172 $1.31566 $1.29898 $1.52245 $1.57006 $1.72625 County Futures $0.03727 $0.03820 $0.04054 $0.04752 $0.04900 $0.05388 Port $0.15836 $0.16101 $0.17304 $0.21000 $0.22038 $0.22822 PUD $0.07029 $0.07275 $0.08929 $0.10498 $0.10826 $0.09880 City General $1.88200 $1.94000 $1.56180 $1.40629 $1.39798 $1.97334 State $1.94470 $1.94151 $2.04050 $2.35345 $2.55206 $2.76464 Local Schools $1.85841 $1.99620 $2.31895 $2.06897 $2.24764 $3.11351 City EMS $0.27963 $0.31637 $0.31785 $0.31659 $0.31544 $0.44585 Hospital $0.23001 $0.24410 $0.26360 $0.34282 $0.36373 $0.41705 Totals $7.78239 $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 TownsendFinal Budget 201014 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 2010 $1,455,136,315 $2,738,566 $1.88200 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 2010 $1,455,136,315 $406,899 $0.27963 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 $1,669,716 2010* $1,717,000 * = 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 City of Port TownsendFinal Budget 201015 General Fund Revenues 1997 $269,241 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 $662,000 2010* $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 2010 estimated population is 8,895. 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. City of Port TownsendFinal Budget 201016 General Fund Revenues The City of Port Townsend imposes the leasehold excise tax at the rate of 4 percent. Doing so does not affect the rate that leaseholders must pay; it simply determines who receives the money. 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 $200,058 2010* $226,000 * = estimated City of Port TownsendFinal Budget 201017 City of Port Townsend Fund Summary General Fund BudgetBudget YearYearIncrease 20102009<Decrease> Revenues By Source Taxes4,546,340$ 5,489,557$ (943,217)$ Licenses & Permits276,360276,360- Intergovernmental165,468188,711(23,243) Charges for Services1,990,4241,443,074547,350 Fines & Forfeits107,20093,20014,000 Miscellaneous Receipts24,20528,053(3,849) Operating Transfers-in- - - Total Revenues 7,109,996$ 7,518,955$ (408,959)$ Expenditures By Program Legislative114,756$ 129,703$ (14,946)$ Administrative Services256,305 245,560 10,745 Legal Services485,215 439,588 45,627 Clerk Services259,940 247,043 12,897 Financial Services386,644 365,316 21,328 Development Services794,788 558,874 235,914 Planning Services81,941 165,021 (83,080) Law Enforcement Services2,728,800 2,732,702 (3,903) Facility Services297,681 392,796 (95,115) Public Access TV Station29,755 30,152 (397) Other Services30,136 30,136 - Grants Management Services82,876 78,401 4,475 Transfers to Other Funds 1,156,949 2,179,121 (1,022,172) Total Expenditures 6,705,786$ 7,594,413$ (888,627)$ Expenditures By Object Personnel3,890,993$ 3,589,466$ 301,527$ Operating Expenditures1,005,968 1,145,436 (139,467) Intergovernmental Services628,001 660,748 (32,748) Interfund Transfers-out1,156,949 2,179,121 (1,022,172) Capital Outlay 23,875 19,642 4,233 Total Expenditures 6,705,786$ 7,594,413$ (888,627)$ Estimated Beginning Fund Balance155,518$ 230,976$ (75,458)$ Increase<Decrease> in Fund Balance 404,210 (75,458) 479,668 Estimated Ending Fund Balance 559,729$ 155,518$ 404,210$ Fund Balance Reserve % =7.9%2.1% City of Port TownsendFinal Budget 201018 General Fund Revenue Summary by Category Increase Estimated Revenues20102009(Decrease) Taxes4,546,340$ 5,489,557$ (943,217)$ Licenses & Permits276,360 276,360 - Intergovernmental165,468 188,711 (23,243) Charges for Services1,990,424 1,443,074 547,350 Fines & Forfeits107,200 93,200 14,000 Miscellaneous Receipts24,205 28,053 (3,849) Operating Transfers-in- - - Totals7,109,996$ 7,518,955$ (408,959)$ Revenue Summary by Category Taxes 64%Licenses & Permits 4% Intergovernmental 2% Charges for Services 28% Fines & Forfeits 2% Miscellaneous Receipts 0% City of Port TownsendFinal Budget 201019 General Fund Taxes by Source Property taxes385,681$ Retail sales taxes1,831,938 Private utility taxes792,133 Public utility taxes741,508 Business & occupation taxes655,000 Leasehold excise taxes95,000 Cable franchise taxes45,080 Total4,546,340$ General Fund Taxes by Source Retail sales taxes 41% Private utility taxes 18% Property taxes 8% Public utility taxes 16% Business & occupation taxes 14% Leasehold excise taxes 2% Cable franchise taxes 1% City of Port TownsendFinal Budget 201020 General Fund Expenditures by CategoryGeneral Government, $1,943,308 , 29% Economic Environment, $876,729 , 13% Public Safety, $2,728,800 , 41% Debt Service, $291,405 , 4%Culture & Recreation, $865,544 , 13% City of Port Townsend Final Budget 2010 21 General Fund Expenditures by DepartmentCity Manager, $256,305, 4%City Attorney, $485,215, 7%City Clerk, $259,940, 4%Planning Department, $81,941, 1% Development Services, $794,788, 12% Finance, $386,644, 6%Police Admin, $614,925, 9% Police Operations, $2,106,035, 31%City Facilities, $297,681, 4%Non-Departmental, $30,136, 0% PEG TV Department, $29,755, 0% Grants Management, $82,876, 1% Transfer-out Interfund Loan Repayments, $120,405, 2%Transfer-out Debt Service, $171,000, 3%Police Training, $7,840, 0% City Council, $114,756, 2%Transfer-out Community Services, $865,544, 13% City of Port Townsend Final Budget 2010 22 General Fund Expenditures By Object Personnel, $3,890,993 Capital Outlay, $23,875 Interfund Transfers-out, $1,156,949 Operating Expenditures, $1,005,968 Intergovernmental Services, $648,001 City of Port Townsend Final Budget 2010 23 CITY OF PORT TOWNSEND General Fund Summary BudgetBudgetContribution EstimatedEstimatedTo RevenuesExpendituresFund Balance Estimated Beginning Fund Balance155,518$ General Fund Departments City Council$5,578,464$114,756$5,463,707 City Manager$0$256,305(256,305) City Attorney$0$485,215(485,215) City Clerk$4,000$259,940(255,940) Planning Department$0$81,941(81,941) Development Services$292,150$794,788(502,638) Finance$743,737$386,644357,093 Police Admin$61,080$614,925(553,845) Police Operations$378,061$2,106,035(1,727,974) Police Training$0$7,840(7,840) City Facilities$0$297,681(297,681) Non-Departmental$0$30,136(30,136) PEG TV Department$52,505$29,75522,750 Grants Management$0$82,876(82,876) Transfer-out Interfund Loan Repayments$0$120,405(120,405) Transfer-out Debt Service$0$171,000(171,000) Transfer-out Community Services$0$865,544(865,544) Transfer-out Contingency Fund$0- - Transfer-out Fire/EMS$0- - $7,109,996$6,705,786$404,210 Estimated Ending Fund Balance559,729$ General Fund Balance Reserve % achieved7.9% City of Port TownsendFinal Budget 201024 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 TownsendFinal Budget 201025 CITY OF PORT TOWNSEND Departmental Summary City Council BudgetBudget YearYearIncrease 20102009<Decrease> Revenues By Program Taxes3,707,809$ 4,645,238$ (937,429)$ Licenses & permits4,000 4,000 - Intergovernmental Revenues250 250 - Charges for Services1,845,171 1,281,289 563,883 Fines and Forfeits- - - Miscellaneous Receipts21,233 24,966 (3,734) Equity transfers in- - - Less: revenue provided to departments(5,463,707) (5,826,040) 362,333 Note 1 Total Estimated Revenues114,756$ 129,703$ (14,946)$ Expenditures By Program Legislative Services114,756$ 129,703$ (14,946)$ Total Expenditures114,756$ 129,703$ (14,946)$ Expenditures By Object Personnel48,560$ 48,543$ 17$ Operating Expenditures61,196 76,160 (14,963) Capital Outlay5,000 5,000 - Total Expenditures114,756$ 129,703$ (14,946)$ Performance Measures: Ending General Fund Balance6.9% General Fund Balance - City Council Amount Reserved1.0% (Policy amount needed = 1%) General Fund Balance - total Ending Fund Balance7.9% (Policy amount needed = 5% to 8%) Contingency Fund Balance as a percent of General Fund Estimated Revenues1.6% (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 TownsendFinal Budget 201026 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 TownsendFinal Budget 201027 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 TownsendFinal Budget 201028 CITY OF PORT TOWNSEND Departmental Summary City Manager BudgetBudget YearYearIncrease 20102009<Decrease> Revenues By Program Executive - General Fund Support256,305$245,560$10,745$ Expenditures By Program Safety Committee-$ -$ -$ Administrative Services256,305 245,560 10,745 Total Expenditures256,305$245,560$10,745$ Expenditures By Object Personnel231,410$ 226,558$ 4,852$ Operating Expenditures23,395 17,502 5,893 Capital Outlay1,500 1,500 - Total Expenditures256,305$245,560$10,745$ City of Port TownsendFinal Budget 201029 City Attorney Legal AssistantCity Prosecuting Attorney City Attorney City Manager City of Port TownsendFinal Budget 201030 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 2010 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) (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. (11) Court and jail services and costs City of Port TownsendFinal Budget 201031 CITY OF PORT TOWNSEND Departmental Summary City Attorney BudgetBudget YearYearIncrease 20102009<Decrease> Revenues By Program Legal Services - General Fund Support 485,215$ 439,588$ 45,627$ Expenditures By Program Muncipal Court Administration199,570$ 199,570$ -$ Note 1 Legal Services 285,645 240,018 45,627 Total Expenditures 485,215$ 439,588$ 45,627$ Expenditures By Object Personnel273,333$ 199,292$ 74,041$ Operating Expenditures12,312 40,726 (28,414) Intergovernmental Services199,570 199,570 - Capital Outlay- - - Total Expenditures 485,215$ 439,588$ 45,627$ Note 1 Starting 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 TownsendFinal Budget 201032 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 TownsendFinal Budget 201033 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 2009 Provided agendas, packets, and minutes for all council meetings and committee meetings. Implemented system for posting Council packets on line and web streaming Council meetings. Coordinated all appointments to advisory boards and commissions. Conducted Civil Service testing. Acted as Public Records Officer, fulfilling public records requests; Continued scanning documents into LaserFiche database. Prepared code changes necessary for updated personnel policies to take effect. Centralized human resources functions for advertising, recruitment and records in the Clerk’s office. Supervised hiring to fill nine positions. Provided access on line to years of public records through Laserfiche Weblink implementation. Worked with IT to implement respository for City e-mail correspondence. Goals and Objectives 2010 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. Work with State Archives and Historical Society to address historical records issues. Update e-mail and electronic records procedures. Complete personnel policy manual. City of Port TownsendFinal Budget 201034 CITY OF PORT TOWNSEND Departmental Summary City Clerk BudgetBudget YearYearIncrease 20102009<Decrease> Revenues By Source General Fund support255,940$ 242,928$ 13,012$ Archive Fees4,000 4,115 (115) Grants- - - Total Revenues259,940$247,043$12,897$ Expenditures By Program City Clerk Services259,940$247,043$12,897$ Total Expenditures259,940$247,043$12,897$ Expenditures by Object Personnel180,370$ 184,182$ (3,812)$ Operting Expenditures78,570 61,861 16,709 Capital Outlay1,000 1,000 - Total Expenditures259,940$247,043$12,897$ Percent of coverage of expenditures by revenues1.54%1.67%-0.13% City of Port TownsendFinal Budget 201035 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 TownsendFinal Budget 201036 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 TownsendFinal Budget 201037 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 2010 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 TownsendFinal Budget 201038 CITY OF PORT TOWNSEND Departmental Summary Development Services Department BudgetBudget YearYearIncrease 20102009<Decrease> Revenues By Source General Fund support420,697$ 266,724$ 153,973$ Building Permits226,000 226,000 - Zoning Fees32,000 32,000 - Plan Checking Fees- - - Impact Fees- - - SEPA Related Fees- - - Planning Services34,000 34,000 - Miscellaneous Revenues150 150 - Intergovernmental- - - Total Revenues712,847$ 558,874$ 153,973$ Expenditures By Program Building & Planning Services712,847$ 558,874$ 153,973$ Special Projects- - - Note 1 Total Expenditures712,847$ 558,874$ 153,973$ Expenditures by Object Personnel584,832$ 447,352$ 137,480$ Operating Expenditures123,015 111,522 11,493 Capital Outlay5,000 - 5,000 Total Expenditures712,847$ 558,874$ 153,973$ Percent coverage of expenditures by revenues40.98%52.27%-11.29% Starting in 2008, Special Projects was segregated as the new Planning Department. City of Port TownsendFinal Budget 201039 CITY OF PORT TOWNSEND Departmental Summary Planning Department BudgetBudget YearYearIncrease 20102009<Decrease> Revenues By Source General Fund support163,882$ 165,021$ (1,139)$ Planning Services- - - Misc Revenues- - - Intergovernmental- - - Total Revenues163,882$ 165,021$ (1,139)$ Expenditures By Program Planning Services163,882$ 165,021$ (1,139)$ Note 1 Total Expenditures163,882$ 165,021$ (1,139)$ Expenditures by Object Personnel158,682$ 159,821$ (1,139)$ Operating Expenditures5,200 5,200 - Capital Outlay- - - Total Expenditures163,882$ 165,021$ (1,139)$ 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 TownsendFinal Budget 201040 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 TownsendFinal Budget 201041 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. 2009 Accomplishments • Successfully completed the annual audit by the State Auditor; and • Hired and trained new staff to work in utility billing functions • Finalized agreement with Washington State Department of Licensing to implement new master license services for city business licensing; 2010 Goals and Objectives In 2010, 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 accounting system software vendor 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: Provide Project Accounting Support for Upper Sims Way capital projects. • Work with Public Works to monitor project costs; and • Maintain project accounting records; and • Develop grant reimbursement financing schedules for projects. Goal: Work closely with Public Works on new capital project reporting system. City of Port TownsendFinal Budget 201042 Finance Department • Design project reporting system that will be network based; and • Provide monthly reporting of project costs and balances. 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 TownsendFinal Budget 201043 CITY OF PORT TOWNSEND Departmental Summary Finance Department BudgetBudget YearYearIncrease 20102009<Decrease> Revenues By Source B&O tax collections655,000$ 655,000$ -$ Business & Other Licenses40,000 40,000 - Interfund Services48,237 48,216 22 Investment income500 500 - Total Revenues743,737$743,716$22$ Expenditures By Program City Financial Services386,644$365,316$21,328$ Total Expenditures386,644$365,316$21,328$ Expenditures by Object Personnel318,303$ 299,966$ 18,337$ Operating Expenditures65,591 62,600 2,991 Capital Outlay2,750 2,750 - Total Expenditures386,644$365,316$21,328$ Percent coverage of expenditures by revenues192.36%203.58%-11.22% City of Port TownsendFinal Budget 201044 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 TownsendFinal Budget 201045 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 an 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; p rocesses 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 Police Officer. INVESTIGATIONS The Investigations Division, (currently consisting of two officers), conducts professional and comprehensive follow-up investigations of reported major crimes. 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. 2010 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 Reserve Police Academy and recruit for a 2011 Citizens Academy. • Enhance our ability to better serve our community through various means inclusive of, but not limited to the use of the new police facility (Mt. View) to bring the public in and use the facility as if it is their own. City of Port TownsendFinal Budget 201046 CITY OF PORT TOWNSEND Departmental Summary Police Department BudgetBudget YearYearIncrease 20102009<Decrease> Revenues By Source General Fund support2,294,881$ 2,267,198$ 27,683$ Court Appointed Inmate fees- - - Fines101,200 87,200 14,000 Grants34,964 63,675 (28,711) Law enforcement services27,000 43,555 (16,555) Retail Sales Taxes - Criminal Justice114,938 113,800 1,138 Public Utility Taxes - Water, Sewer,Storm, Garbage96,718 96,037 681 Criminal Justice Taxes12,780 12,455 325 Liquor Excise Taxes42,518 44,982 (2,464) Motor Vehicle Taxes2,000 2,000 - Miscellaneous1,800 1,800 - Total Revenues2,728,800$ 2,732,702$ (3,903)$ Expenditures By Program Administration614,925$ 611,818$ 3,107$ Operations2,106,035 2,113,045 (7,010) Note 1 Training7,840 7,840 - Total Expenditures2,728,800$ 2,732,702$ (3,903)$ Expenditures by Object Personnel1,874,274$ 1,802,696$ 71,578$ Operating Expenditures423,595 466,328 (42,733) Intergovernmental Services428,431 461,178 (32,748) Capital Outlay2,500 2,500 - Total Expenditures2,728,800$ 2,732,702$ (3,903)$ Percent of coverage of expenditures bq revenues15.90%17.03%-1.13% Note 1 In 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 TownsendFinal Budget 201047 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 two Maintenance Workers and by the Fleet/Facilities Crew Chief. The Crew Chief also performs or coordinates minor building repairs and modifications. In 2010, we will continue efforts to expand completion of deferred maintenance of existing facilities to include City Hall, Pope Marine Building, and Mountain View. City of Port TownsendFinal Budget 201048 CITY OF PORT TOWNSEND Departmental Summary City Facilities Department BudgetBudget YearYearIncrease 20102009<Decrease> Revenues By Source General Fund support297,681$ 392,796$ (95,115)$ Custodial Services- - - Total Revenues297,681$392,796$(95,115)$ Expenditures By Program Public Restrooms-$ -$ -$ City Hall and Facilities297,681 392,796 (95,115) Total Expenditures297,681$392,796$(95,115)$ Expenditures by Object Personnel138,353$ 142,655$ (4,302)$ Operating Expenditures159,328 250,141 (90,813) Capital Outlay- - - Total Expenditures297,681$392,796$(95,115)$ Percent of coverage of expenditures by revenues0.00%0.00%0.00% City of Port TownsendFinal Budget 201049 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 TownsendFinal Budget 201050 CITY OF PORT TOWNSEND Departmental Summary Non-Departmental BudgetBudget YearYearIncrease 20102009<Decrease> Revenues By Source General Fund support30,136$ 30,136$ -$ Other- - - Total Revenues30,136$ 30,136$ -$ Expenditures By Program Intergovernmental Services - ORCAA3,989 3,989 -$ Note 1 Reserve (medical benefits and capital facilities reserve)26,147 26,147 - - - - Total Expenditures30,136$ 30,136$ -$ Expenditures by Object Intergovernmental Services - Jefferson County contract-$ -$ -$ Note 1 Operating Expenditures30,136 30,136 - Total Expenditures30,136$ 30,136$ -$ 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. ORCAA is the state agency Olympia Region Clean Air Agency which requires an annual assessment. City of Port TownsendFinal Budget 201051 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. 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. Goals and Objectives Continue complying with Council directives regarding examination of: (1) responsibilities of stakeholders and station personnel and partners of the station; (2) improving and clarifying the 2001 interlocal agreement; (3) allocation of resources among public, educational and governmental programming (4) methods for providing accountability for the allocation of resources City of Port TownsendFinal Budget 201052 CITY OF PORT TOWNSEND Departmental Summary P.E.G. Access TV Studio BudgetBudget YearYearIncrease 20102009<Decrease> Revenues By Source General Fund support-$ -$ -$ Utility Tax- TV Cable Franchise Fee45,080 45,080 - TV Public Access Fee6,360 6,360 - Program Fees1,030 1,030 - Total Revenue52,470$ 52,470$ -$ Expenditures Operating Expenditures23,630$ 23,260$ 370$ Capital Outlay - restricted6,125 6,125 - Capital Outlay - unrestricted- 767 (767) Personnel- - - Total Expenditures29,755$ 30,152$ (397)$ Program Revenues in Excess of Expenditures22,715$ 22,318$ 397$ Percent coverage of expenditures by revenues100.0%100.0%0.0% City of Port TownsendFinal Budget 201053 Grants Management Functions Starting in 2009, a new department was created for researching, applying, and coordination of various foundation, 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. In 2009, the city received grant awards totaling $5,325,740 to be spent over the next three years. Grants were awarded for the seismic retrofit of specific public buildings and infrastructure, the development of a Hazard Mitigation Plan for the county and city, drug use prevention education, Streetscape construction, and the development of a Wayfinding system to increase tourism. This does not include grants that other city departments may have applied for and received on their own. The Grants Management department also provides ad hoc consulting to other governmental agencies regarding grant opportunities. City of Port TownsendFinal Budget 201054 CITY OF PORT TOWNSEND Departmental Summary Grants Management Department BudgetBudget YearYearIncrease 20102009<Decrease> Revenues By Source Interfund Services-$ -$ -$ General Fund Support 82,876 78,401 4,475 Total Revenues 82,876$ 78,401$ 4,475$ Expenditures By Program Grants Management 82,876 78,401 4,475 Total Expenditures 82,876$ 78,401$ 4,475$ Expenditures by Object Personnel82,876$ 78,401$ 4,475$ Operating Expenditures- - - Capital Outlay- - - Total Expenditures82,876$ 78,401$ 4,475$ City of Port TownsendFinal Budget 201055 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 • Community Services Fund to support non-profit community services, city parks and pool operations; 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 TownsendFinal Budget 201056 CITY OF PORT TOWNSEND Departmental Summary Fund Equity and Transactions BudgetBudget YearYearIncrease 20102009<Decrease> Ending General Fund Balance City Council Reserved Fund Balance - (1%)55,785$ 59,557$ (3,773)$ see Note 1 Unreserved Fund Balance503,944 95,961 407,983 Total Ending Fund Balance559,729$ 155,518$ 404,210$ 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 Fund- 834,835 (834,835) Interfund Subsidies - Transfer-Out to Library Fund- - - Interfund Subsidies - Transfer-Out ER&R Fund53,375 29,500 23,875 Interfund Subsidies - Transfer-Out Transmission Line Fund67,030 42,726 24,304 Interfund Subsidies - Transfer-Out Contingency Fund- 25,000 (25,000) Interfund Subsidies - Transfer-Out to Community Services Fund865,544 1,076,060 (210,516) Total Other Financing Uses1,156,949$ 2,179,121$ (1,022,172)$ Total Fund Equity and Other Financing Uses1,716,678$ 2,334,639$ (617,962)$ Estimated Ending Fund Balance reserve7.9%2.1% 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 TownsendFinal Budget 201057 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 TownsendFinal Budget 201058 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 TownsendFinal Budget 201059 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, Big Brothers/Big Sisters $20,000, and Arts City of Port TownsendFinal Budget 201060 Special Revenue Funds Commission for $19,600. Detail budget information follows. Street Fund The Street Fund is responsible for the administration and maintenance of the city’s transportation network, which includes approximately 74 miles of public roadways together with roadside improvements, sidewalks, bicycle facilities, signalization and illumination systems. The work plan associated with this responsibility include: • Street sweeping • Roadside vegetation management and mowing • Landscape maintenance • Pavement and shoulder repair • Pavement markings • Snow and ice control • Traffic signal and illumination system maintenance • Signage • Traffic counts • Transportation planning • Street tree maintenance The Street Fund receives revenues from state distributions of motor vehicle fuel taxes for two programs: city streets and arterial streets. State law restricts these revenues: • City streets: to be used for any street purposes (RCW 46.68.070.110, 47.24.040 and 35.76 RCW) • Arterial streets: to be used for highways and arterial streets. For cities with populations less than 15,000, cities may use these monies for the maintenance of arterial highways and city streets (RCW 46.68.070). The city consolidated its Arterial Street Fund into the Street Fund in 2000 as allowed by RCW 46.68.070 for cities with populations less than 15,000. These state revenues distributions are not sufficient resources to maintain city streets. Prior to 2007, the city general fund provided subsidies to the street fund for its operation. In 2007, the city council authorized an increase in the city utility tax by 10% resulting in a total public utility tax of 20%. The city council restricted this 10% increase for an allocation to public safety (1.5%) and street maintenance and operation (8.5%). Detail budget information follows. City of Port TownsendFinal Budget 201061 CITY OF PORT TOWNSEND Fund Summary Drug Enforcement and Education Fund BudgetBudget YearYearIncrease 20102009<Decrease> Revenues By Source Investment Interest2$ 2$ -$ Expenditures Supplies- - - Capital- - - -$ -$ -$ Estimated Beginning Fund Balance2,543$ 2,541$ 2$ Increase<Decrease> in Fund Balance2 2 - Estimated Ending Fund Balance2,545$ 2,543$ 2$ City of Port TownsendFinal Budget 201062 CITY OF PORT TOWNSEND Fund Summary Contingency Fund BudgetBudget YearYearIncrease 20102009<Decrease> Revenues By Source Property Tax10,000$ -$ 10,000$ Operating Transfer-in- 25,000 (25,000) Investment Interest402 2,136 (1,733) Total Revenues10,402$ 27,136$ (16,733)$ Expenditures-$ -$ -$ Estimated Beginning Fund Balance100,580$ 73,444$ 27,136$ Increase<Decrease> in Fund Balance10,402 27,136 (16,733) Estimated Ending Fund Balance110,982$ 100,580$ 10,402$ City of Port TownsendFinal Budget 201063 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 Final Budget 2010 64 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 TownsendFinal Budget 201065 City of Port Townsend Fund Summary Library Fund BudgetBudget YearYearIncrease 20102009<Decrease> Revenues By Source General Fund support-$ -$ -$ Property Taxes939,023 929,726 9,297 State grants35,500 19,000 16,500 Private grants9,870 8,827 1,043 Fines13,130 12,000 1,130 Miscellaneous- 5,480 (5,480) Total Revenues997,523$ 975,033$ 22,490$ Expenditures By Program Library Services988,071$ 934,054$ 54,017$ Total Expenditures988,071$ 934,054$ 54,017$ Expenditures by Object Personnel589,660$ 591,874$ (2,214)$ Operating Expenditures303,411 249,487 53,924 Capital Outlay - Acquisitions95,000 87,193 7,807 Capital Outlay - Furniture & Fixtures- 5,500 (5,500) Total Expenditures988,071$ 934,054$ 54,017$ Estimated Beginning Fund Balance40,979$ -$ 40,979$ Increase<Decrease> in Fund Balance9,453 40,979 (31,526) Estimated Ending Fund Balance50,431$ 40,979$ 9,453$ Fund Balance Reserve % =5.1%4.2% City of Port TownsendFinal Budget 201066 CITY OF PORT TOWNSEND Fund Summary Lodging Tax Fund BudgetBudget YearYearIncrease 20102009<Decrease> Revenues By Source Hotel Motel Taxes350,000$ 341,000$ 9,000$ Investment Interest113 3,991 (3,878) Total Revenues350,113$ 344,991$ 5,122$ Expenditures Professional Services-PT Chamber-$ -$ -$ Professional Services-PAW- - - Professional Services-Other240,000 312,738 (72,738) Advertising- - - Advertising-Joint Marketing- - - Communications- - - Miscellaneous-Special Events- - - General Fund Overhead Charges33,667 40,940 (7,274) Interfund Services & Charges - Public Restrooms- - - Interfund Subsidies - Waterfront debt service69,269 69,269 - Interfund Subsidies - McCurdy Pavilion debt service21,414 21,414 - Interfund Subsidies - PT Marine Science Center debt5,983 5,983 - Total Expenditures370,333$ 450,344$ (80,012)$ Estimated Beginning Fund Balance28,332$ 133,685$ (105,353)$ Increase<Decrease> in Fund Balance(20,219) (105,353) 85,134 Estimated Ending Fund Balance8,112$ 28,332$ (20,219)$ Estimated Ending Fund Balance Reserve 2.3%8.2% City of Port TownsendFinal Budget 201067 CITY OF PORT TOWNSEND Fund Summary Community Development Block Grant Fund BudgetBudget YearYearIncrease 20102009<Decrease> Revenues By Source Federal Program Income10,000$ 10,000$ -$ Federal Grant Programs- 485,000 (485,000) Investment Interest Income 754 853 (99) Total Revenues 10,754$ 495,853$ (485,099)$ Expenditures Community Development Loans-Other-$ 485,000$ (485,000)$ Community Development Loans-Historic District 100,000 10,000 90,000 Total Expenditures 100,000$ 495,000$ (395,000)$ Estimated Beginning Fund Balance150,841$ 149,988$ 853$ Increase<Decrease> in Fund Balance(89,246) 853 (90,099) Estimated Ending Fund Balance 61,595$ 150,841$ (89,246)$ City of Port TownsendFinal Budget 201068 CITY OF PORT TOWNSEND Fund Summary System Development Charges Fund BudgetBudget YearYearIncrease 20102009<Decrease> Revenues By Source Interest Income8,329$ 9,641$ (1,313)$ Water SDCs-City74,000 74,000 - Water SDCs-Outside city20,000 20,000 - Sewer SDCs69,000 69,000 - Total Revenues171,329$ 172,641$ (1,313)$ Expenditures Interfund Subsidies (Water)195,000$ 300,000$ (105,000)$ Interfund Subsidies (Sewer)170,000 190,000 (20,000) Total Expenditures365,000$ 490,000$ (125,000)$ Estimated Beginning Fund Balance277,626$ 594,984$ (317,359)$ Increase<Decrease> in Fund Balance(193,671) (317,359) 123,687 Estimated Ending Fund Balance83,954$ 277,626$ (193,671)$ City of Port TownsendFinal Budget 201069 City of Port Townsend Fund Summary Fire and Emergency Services Fund BudgetBudget YearYearIncrease 20102009<Decrease> Revenues By Source General Fund support-$ 834,835$ (834,835)$ General Property Taxes832,171 - 832,171 EMS Property Taxes412,500 392,253 20,247 Residual Equity Transfer in- - - Total Revenues1,244,671$ 1,227,088$ 17,583$ Expenditures By Program Fire-$ -$ -$ Emergency Medical Services (EMS)- - - Contract Emergency Services1,244,671 1,227,088 17,583 Total Expenditures1,244,671$ 1,227,088$ 17,583$ Expenditures by Object Personnel-$ -$ -$ Operating Expenditures- - - Intergovernmental Charges-EJFR1,244,671 1,227,088 17,583 Note 1 Capital Outlay- - - Total Expenditures1,244,671$ 1,227,088$ 17,583$ Estimated Beginning Fund Balance(0)$ (0)$ -$ Increase<Decrease> in Fund Balance- (0) 0 Estimated Ending Fund Balance(0)$ (0)$ 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 TownsendFinal Budget 201070 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 TownsendFinal Budget 201071 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. 2010 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, City Lake Pipeline Repair and a plan for sewer extension in the southwest quadrant of the City. Ensure continued reliable, safe water supply through continued planning to meet federally mandated secondary disinfection standards. 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 projects 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. 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, and contract compliance for Upper Sims Way, Downtown Streetscape, Cotton Building Renovation, Wave Gallery Repair, and other major projects. Integrate the Mountain View complex into City facility operations and maintenance schedules. 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. City of Port TownsendFinal Budget 201072 Public Works Administration and Engineering 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 TownsendFinal Budget 201073 City of Port Townsend Fund Summary Public Works Admin and Engineering Fund BudgetBudget YearYearIncrease 20102009<Decrease> Revenues By Source Interfund Services1,173,995$ 1,269,096$ (95,101)$ General Fund support- - - Total Revenues1,173,995$ 1,269,096$ (95,101)$ Expenditures By Program Administration279,192$ 310,014$ (30,822)$ Engineering Services834,873 966,987 (132,114) Total Expenditures1,114,065$ 1,277,001$ (162,936)$ Expenditures by Object Personnel973,869$ 1,030,705$ (56,836)$ Operating Expenditures127,089 122,250 4,839 Interfund Charges8,107 119,046 (110,939) Capital Outlay5,000 5,000 - Total Expenditures1,114,065$ 1,277,001$ (162,936)$ Actual Beginning Fund Balance4,600$ 12,505$ (7,905)$ Increase<Decrease> in Fund Balance59,930 (7,905) 67,835 Estimated Ending Fund Balance64,531$ 4,600$ 59,930$ City of Port TownsendFinal Budget 201074 Parks and Recreation Department Parks Assistant Parks Assistant Parks Assistant Parks Assistant Parks Seasonals Parks Foreman Parks Maintenance YMCA - partnership Recreation Lifeguards Instructors Assistant Pool Manager Pool Manager Aquatics/Pool Parks & Recreation Manager Public Works Director City Manager City of Port TownsendFinal Budget 201075 City of Port Townsend Fund Summary Community Services Fund BudgetBudget YearYearIncrease 20102009<Decrease> Revenues By Source General Fund support865,544$ 1,076,060$ (210,516)$ General Property Taxes400,000 - 400,000 Charges for services - pool services93,000 93,000 - Sublease income - Mountain View Campus9,120 400 8,720 Rental income7,000 7,000 - Miscellaneous event revenues4,000 4,000 - Donations- - - Total Revenues1,378,664$ 1,180,460$ 198,204$ Expenditures By Program Contract Community Service Providers148,600$ 168,600$ (20,000)$ Mountain View Campus180,375 14,600 165,775 Parks Maintenance605,869 449,635 156,234 Recreation118,000 118,000 - Pool232,697 239,153 (6,456) Interfund Charges131,784 149,694 (17,910) Events Coordination- - - Total Expenditures1,417,325$ 1,139,682$ 277,643$ Expenditures by Object Personnel668,827$ 516,163$ 152,664$ Operating Expenditures697,998 608,419 89,579 Interfund Loan Repayments40,000 42,017 (2,017) Capital Outlay10,500 500 10,000 Total Expenditures1,417,325$ 1,167,099$ 250,226$ Actual Beginning Fund Balance40,921$ 143$ 40,778$ Increase<Decrease> in Fund Balance(38,661) 40,778 (79,439) Estimated Ending Fund Balance2,260$ 40,921$ (38,661)$ Estimated Ending Fund Balance reserve0.2%3.5% Note 1: Prior to 2005, the Community Services Fund was included as various departments of the General Fund. City of Port TownsendFinal Budget 201076 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 TownsendFinal Budget 201077 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. 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. 2009 Accomplishments • Continued to install hot tape for crosswalks on the streets that were previously painted to reduce the labor hours to maintain the paint. • Continued making spot repairs to the downtown and uptown sidewalks to prevent tripping hazards. Spent approximately 80 + hours doing this work. • Chip sealed 0.78 miles of gravel streets utilizing the Jefferson County Road Department because of the inability to get the oil. • Installed a total of five new bike racks in the uptown and downtown areas City of Port TownsendFinal Budget 201078 Street Fund Street Division Performance Measures 2007 2008 2009 as of 10/31/09 2010 Est. Citizen concern/requests received 260 286 266 200 Painting of crosswalks, curbs, and parking stalls (Time Spent, Hrs.) 500 500 500 500 Miles of gravel road maintained twice a year 5.17 5.04 4.25 4.25 Miles of roadway maintained in the City. 78.34 79 80 80 Miles of road re-striped –one time per year 40 40 40 40 Street Shoulders - Miles pulled 0.5 0.75 0.5 2 Right-of-Way chip sealed or Paved (Miles) 0.77 Chip Sealed 0.0 0.78 Chip Sealed 1.5 Depending on Funding City of Port TownsendFinal Budget 201079 CITY OF PORT TOWNSEND Fund Summary Street Fund BudgetBudget YearYearIncrease 20102009<Decrease> Revenues By Source State Grants-$ -$ -$ Federal Grants (Indirect)- 11,894 (11,894) Motor Vehicle Fuel Tax201,294 208,934 (7,640) Public Utility Taxes - Water,Sewer,Storm,Garbage548,071 544,212 3,859 Street Development Permits- 10,906 (10,906) Investment Interest754 5,607 (4,853) Street Payback Collection3,100 3,100 - Miscellaneous Income300 300 - Operating Transfers- In- - - Total Revenues753,519$ 784,953$ (31,434)$ Expenditures by program Operations759,189$ 823,144$ (63,955)$ Capital Improvement Projects- 100,000 (100,000) Total Expenditures759,189$ 923,144$ (163,955)$ Expenditures by object Repairs & Maintenance-$ -$ -$ Utility Services73,800 73,800 - Supplies41,000 41,000 - Services & Charges122,067 100,280 21,787 Personnel182,778 169,565 13,213 Capital Outlay- 100,000 (100,000) Interfund Services339,543 438,498 (98,955) Total Expenditures759,189$ 923,144$ (163,955)$ Actual Beginning Fund Balance25,135$ 163,326$ (138,191)$ Increase<Decrease> in Fund Balance(5,670) (138,191) 132,521 Estimated Ending Fund Balance19,466$ 25,135$ (5,670)$ City of Port TownsendFinal Budget 201080 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 TownsendFinal Budget 201081 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 TownsendFinal Budget 201082 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 require 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 TownsendFinal Budget 201083 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 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 $115,000 of the remaining 1978-Series B revenue bonds and most of the 1992 revenue bonds. The refunding issued produced significant savings in future interest costs to the utility ratepayers. The source of monies to repay the debt service for this issue comes from the revenues of the utility. The utility debt service payments for the revenue and revenue refunding bonds are budgeted in a utility debt service fund as listed below. The debt service payments for the State trust and revolving loans are budgeted as a debt service line item in the Water/Sewer Fund. A debt service fund for the State loans is not necessary. City of Port TownsendFinal Budget 201084 City of Port Townsend General Government Debt Service Debt Service 2010 TotalTotalTotal YearPrincipalInterestDebt Service 2010367,920 628,971 996,891 2011383,401 615,571 998,972 2012393,000 601,560 994,560 2013390,000 586,573 976,573 2014410,000 570,548 980,548 2015425,000 553,187 978,187 2016445,000 536,213 981,213 2017460,000 517,750 977,750 2018480,000 498,245 978,245 2019505,000 476,665 981,665 2020525,000 453,455 978,455 2021550,000 429,310 979,310 2022580,000 403,900 983,900 2023740,000 377,108 1,117,108 2024555,000 345,073 900,073 2025575,000 321,633 896,633 2026380,000 297,350 677,350 2027395,000 281,580 676,580 2028410,000 264,398 674,398 2029430,000 246,563 676,563 2030445,000 227,858 672,858 2031465,000 208,500 673,500 2032490,000 187,808 677,808 2033510,000 166,003 676,003 2034535,000 143,308 678,308 2035555,000 119,500 674,500 2036585,000 91,750 676,750 2037610,000 62,500 672,500 2038640,000 32,000 672,000 - Totals14,234,321$ 10,244,874$ 24,479,195$ City of Port TownsendFinal Budget 201085 City of Port Townsend Utility Debt Service Debt Service 2010 State Loans Total TotalTotalTotalTotalTotalTotal YearPrincipalInterestDebt ServiceYearPrincipalInterestDebt Service 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 Totals3,210,462$ 186,904$ 3,397,366$ Revenue and Refunding Bonds Total City of Port TownsendFinal Budget 201086 CITY OF PORT TOWNSEND Fund Summary G.O. Bond Fund BudgetBudget YearYearIncrease 20102009<Decrease> Revenues By Source Property Taxes150,000$ 100,000$ 50,000$ Investment Interest12 340 (329) Intergovernmental Charges60,000 60,000 - Operating Transfers- In854,372 835,372 19,000 Total Revenues1,064,384$ 995,712$ 68,671$ Expenditures Debt Service Principal370,420$ 354,300$ 16,120$ Debt Service Interest628,972 641,071 (12,099) Professional Services1,000 1,000 - Total Expenditures1,000,392$ 996,371$ 4,021$ Estimated Beginning Fund Balance2,913$ 3,572$ (659)$ Increase<Decrease> in Fund Balance63,992 (659) 64,650 Estimated Ending Fund Balance66,905$ 2,913$ 63,992$ City of Port TownsendFinal Budget 201087 CITY OF PORT TOWNSEND Fund Summary Water/Sewer Bond Funds Debt Service BudgetBudget YearYearIncrease 20102009<Decrease> Revenues By Source Investment Interest2,338$ 6,129$ (3,791)$ Operating Transfers- In from Water Utility65,455 66,987 (1,532) Operating Transfers- In from Sewer Utility564,045 557,833 6,212 Total Revenues631,838$ 630,949$ 889$ Expenditures Debt Service Principal575,000$ 545,000$ 30,000$ Debt Service Interest54,500 78,570 (24,070) Professional Services1,000 1,000 - Total Expenditures630,500$ 624,570 5,930$ Estimated Beginning Fund Balance584,429$ 578,050$ 6,379$ Increase<Decrease> in Fund Balance1,338 6,379 (5,041) Estimated Ending Fund Balance585,767$ 584,429$ 1,338$ City of Port TownsendFinal Budget 201088 Statutory Legal Debt Margin 1,455,136,315$ Nonvoted Limited Indebtedness: Nonvoted Debt Ceiling per RCW 39.36.02: 1.5% of value of taxable property =21,827,045$ Less: Nonvoted debt outstanding(14,234,321)$ Leases/Sales Contracts-$ Total Nonvoted Debt Outstanding(14,234,321)$ Remaining Nonvoted Debt Capacity =7,592,724$ Total Debt Ceiling for General Municipal Purposes, Voted and Nonvoted: 2.5% of value of taxable property =36,378,408$ Less: Voted Debt Outstanding-$ Nonvoted Debt from above(14,234,321)$ Total Debt Outstanding(14,234,321)$ Remaining Debt Capacity Unused =22,144,087$ Calculation of Debt Limit Value of Taxable Property within the City of Port Townsend, Jefferson County, as set in 2009 for purposes of 2010 regular and excess levies, per certificate of the Jefferson County Assessor: City of Port TownsendFinal Budget 201089 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 TownsendFinal Budget 201090 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 TownsendFinal Budget 201091 CITY OF PORT TOWNSEND Fund Summary Capital Improvement Fund BudgetBudget YearYearIncrease 20102009<Decrease> Revenues By Source Real Estate Excise Tax #1220,000$ 200,000$ 20,000$ Real Estate Excise Tax #2220,000 200,000 20,000 Federal Grants1,192,690 350,000 842,690 State Grants290,000 290,000 - State Grants - CIF300,000 550,000 (250,000) State Grants - WSDOT1,100,000 456,300 643,700 State Grants-Transportation Improvement Board1,478,000 - 1,478,000 State Grants-Sims Way Signal- - - Public Works Trust Fund Loans- - - Local Improvement District Proceeds- - - Investment Interest15,725 21,311 (5,586) Miscellaneous Income- - - Interfund Transfer-in Street Fund10,000 91,000 (81,000) Interfund Transfer-in Golf Course Fund- 125,000 (125,000) Other Financing1,122,300 - 1,122,300 Donations- 300 (300) Total Revenues 5,948,715$ 2,283,911$ 3,664,804$ Capital Project Expenditures Personnel-$ -$ -$ Building & Structures774,000 1,466,000 (692,000) Streets Capital Improvements7,416,998 937,293 6,479,705 Parks Capital Improvements2,360,750 471,671 1,889,079 Vessel Removal-RR Trestle- - - Operating Transfer 2002 Bond Payment27,693 27,693 - Operating Transfer 2003/2004 Bond Payment- - - Operating Transfer 1999 Bond Payment21,745 21,745 - Operating Transfer 2005 Bond Payment90,128 91,133 (1,005) Operating Transfer 2008 Bond Payment75,000 73,172 1,828 Interfund Charges45,772 - 45,772 Intergovernmental Loans - Recreation Center- 25,000 (25,000) Miscellaneous Expense- - - Total Expenditures10,812,087$ 3,113,707$ 7,698,380$ Estimated Beginning Fund Balance5,885,301 6,524,771 (639,470)$ Increase<Decrease> in Fund Balance(4,863,371) (829,796) (4,033,576) Estimated Ending Fund Balance 1,021,930$ 5,694,975$ (4,673,045)$ City of Port TownsendFinal Budget 201092 CITY OF PORT TOWNSEND Fund Summary Water/Sewer Capital Improvement Fund BudgetBudget YearYearIncrease 20102009<Decrease> Revenues By Source Investment Interest823$ 0$ 823$ Utility Local Improvement District Proceeds- - - Operating Transfers-In from Water Fund599,500 125,000 474,500 Operating Transfers-In from Sewer Fund- 250,000 (250,000) Operating Transfers-In from SDC Fund365,000 490,000 (125,000) Miscellaneous- - - Total Revenues 965,323$ 865,000$ 100,323$ Capital Project Expenditures General Fund Overhead Expenditures98,000$ 60,150$ 37,850$ Improvements - Water550,000 201,500 348,500 Improvements - Sewer 430,000 400,000 30,000 Total Expenditures 1,078,000$ 661,650$ 416,350$ Estimated Beginning Fund Balance205,642$ 2,292$ 203,350$ Increase<Decrease> in Fund Balance(112,677) 203,350 (316,027) Estimated Ending Fund Balance 92,965$ 205,642$ (112,677)$ 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 TownsendFinal Budget 201093 Water/Facilities/Equipment Divisions Maintenance Workers/Operators (4 FTE) Seasonals (0.7 FTE) Water Crew ChiefWater Resources Operations Manager Mechanic Maintenance Workers (2) Equipment & Facilities Crew Chief Operations Manager Water & Facilities Public Works Director City Manager City of Port TownsendFinal Budget 201094 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 2010 • 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 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 2009 accomplishments • Reliably delivered safe clean drinking water to 5182 taps / 8925 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 5182 meters each month. • Flushed the entire distribution system to remove accumulated sediment and stale water. • Installed 56 new water taps and meters. • Installed 280 replacement meters. • Repaired 10 water main breaks. • Installed 10 new fire hydrants. • Replaced 785 feet of old, undersized, galvanized water main. • Tested flow and residual pressure on 142 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. • Made preparations for water treatment pilot studies for future filtration or secondary disinfection. City of Port TownsendFinal Budget 201095 CITY OF PORT TOWNSEND Fund Summary Water/Sewer Utility Fund BudgetBudget YearYearIncrease 20102009<Decrease> Revenues By Source Revenues from Utility Sales4,222,990$ 4,181,178$ 41,812$ Miscellaneous Operating Revenues39,060 39,040 20 Engineering Fees- - - Investment Interest10,680 47,670 (36,990) Biosolids Compost90,604 90,400 204 SDC Residual Equity Transfers- - - Water/Sewer Latecomer Fees6,000 6,000 - System Development Charges- - - Total Revenues 4,369,334$ 4,364,288$ 5,046$ Expenditures by Program Utility Billing439,593$ 421,691$ 17,902$ City Water Operations2,038,586 1,527,888 510,698 City Water Supply459,259 506,307 (47,049) Wastewater Treatment1,268,026 1,526,565 (258,539) Wastewater Collection1,369,669 1,363,365 6,304 Biosolids517,768 462,112 55,656 Water Resources 115,519 105,270 10,249 Total Expenditures 6,208,420$ 5,913,199$ 295,221$ Expenditures by Object Personnel1,645,065$ 1,538,250$ 106,815$ Supplies & Services797,253 823,836 (26,583) Utility Taxes198,674 197,022 1,653 Intergovernmental Services11,500 11,500 - Interfund Services1,381,574 1,445,958 (64,384) Equipment Rental407,362 345,670 61,692 Debt Service924,342 921,313 3,028 Transfers Out 649,500 425,000 224,500 Capital Outlay 193,150 204,650 (11,500) Total Expenditures 6,208,420$ 5,913,199$ 295,221$ Estimated Beginning Fund Balance2,669,888$ 4,218,799$ (1,548,911)$ Increase (Decrease) in Fund Balance(1,839,086) (1,548,911) (290,175) Estimated Ending Fund Balance 830,802$ 2,669,888$ (1,839,086)$ City of Port TownsendFinal Budget 201096 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. 2009 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 TownsendFinal Budget 201097 Storm Water Utility Fund Storm Water Division (In conjunction with Streets/Wastewater) Function: To clean and maintain the Stormwater Collection System to provide for the safe and efficient transmission of stormwater to prevent damage to public and private property. Goals and Objectives Goal: Continue to maintain the Stormwater 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 stormwater 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 Stormwater 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. 2009 Accomplishments • Cleaned 75% of the system using a basin by basin approach to cleaning the entire storm water system. • Provide routine maintenance inspections for stormwater collection facilities. • Performed contract maintenance on storm water filters at Washington & Taylor and Blaine & Tyler. • Mowed Froggy bottoms stormwater basin two times to maintain growth and noxious weeds. • Replaced one of the pumps at the Kearney Street stormwater lift station Performance Indicators 2007 2008 2009 as of 10/31/09 2010 Est. Number of citizen concerns received 29 26 16 15 Number of catch basins cleaned (in percent) 90 80 75 75 Number of Catch Basins (new or replaced) 40 2 2 5 Miles of street shoulders pulled for stormwater control 0.5 0.75 0.5 2 Stormwater piping installed, new or replaced, (Feet) 263 800 60 400 Number of catch basins in the stormwater system 1181 * 1183 1190 1200 * = Updated information in the GIS System. City of Port TownsendFinal Budget 201098 CITY OF PORT TOWNSEND Fund Summary Stormwater Utility Fund BudgetBudget YearYearIncrease 20102009<Decrease> Revenues By Source Revenues from Utility Sales519,140$ 514,000$ 5,140$ Engineering Fees2,000 2,000 - Investment Interest2,094 3,000 (906) Miscellaneous Receipts- - - State Grant- - - - Total Revenues 523,234$ 519,000$ 4,234$ Expenditures by Program Stormwater Operations587,425$ 520,681$ 66,745$ Capital Improvement Projects 255,000 20,000 235,000 Total Expenditures 842,425$ 540,681$ 301,745$ Expenditures by Object Personnel282,110$ 259,447$ 22,663$ Supplies & Services22,735 22,248 487 Utility Taxes9,787 9,830 (43) Interfund Services192,446 157,054 35,392 Equipment Rental80,347 72,102 8,245 Debt Service- - - Capital Outlay 255,000 20,000 235,000 Total Expenditures 842,425$ 540,681$ 301,745$ Estimated Beginning Fund Balance523,450 545,131 (21,681)$ Increase<Decrease> in Fund Balance(319,192) (21,681) (297,511) Estimated Ending Fund Balance 204,258$ 523,450$ (319,192)$ City of Port TownsendFinal Budget 201099 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 TownsendFinal Budget 2010100 CITY OF PORT TOWNSEND Fund Summary Transmission Line Replacement Fund BudgetBudget YearYearIncrease 20102009<Decrease> Revenues By Source Operating Transfers-in50,000$ 50,000$ -$ Interfund Loan Repayments107,030 90,248 16,782 Investment Interest 70,025 118,174 (48,149) Total Revenues 227,055$ 258,422$ (31,367)$ Expenditures by Program Capital Improvements5,000$ 5,000$ -$ Interfund Loan to Golf Course- 125,000 (125,000) Operations 28,000 28,000 - Total Expenditures33,000$ 158,000$ (125,000)$ Expenditures by Object Professional Services25,000$ 25,000$ -$ Interfund Charges3,000 3,000 - Interfund Loans Issued- 125,000 (125,000) Capital Outlay 5,000 5,000 - Total Expenditures 33,000$ 158,000$ (125,000)$ Estimated Beginning Fund Balance3,501,233$ 3,400,812$ 100,422$ Increase<Decrease> in Fund Balance194,055 100,422 93,633 Estimated Ending Fund Balance 3,695,288$ 3,501,233$ 194,055$ City of Port TownsendFinal Budget 2010101 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 TownsendFinal Budget 2010102 CITY OF PORT TOWNSEND Fund Summary Equipment Rental and Revolving Fund BudgetBudget YearYearIncrease 20102009<Decrease> Revenues By Source Revenues from Equipment Rentals-Fleet825,136$ 865,461$ (40,325)$ Revenues from Equipment Rentals-IT273,807 162,108 111,699 Sale of Surplus Equipment- - - Interfund Loan Repayments53,375 28,442 24,933 Miscellaneous Receipts5,000 5,000 - Investment Interest 3,245 4,337 (1,092) Total Revenues 1,160,563$ 1,065,348$ 95,215$ Expenditures by Program Operations and Maintenance-Fleet Division561,487$ 555,421$ 6,066$ Operations and Maintenance-Information Tech Division125,274 132,650 (7,376) Capital Asset Additions-Fleet Division180,000 150,000 30,000 Capital Asset Additions-Information Tech Division 77,700 171,125 (93,425) Total Expenditures 944,461$ 1,009,196$ (64,735)$ Expenditures by Object Personnel225,504$ 219,446$ 6,058$ Supplies & Services218,631 216,476 2,155 Interfund Services242,626 252,149 (9,523) Capital Outlay 257,700 321,125 (63,425) Total Expenditures 944,461$ 1,009,196$ (64,735)$ Estimated Beginning Fund Balance811,332$ 755,180$ 56,152$ Increase<Decrease> in Fund Balance 216,102 56,152 159,950 Estimated Ending Fund Balance 1,027,434$ 811,332$ 216,102$ City of Port TownsendFinal Budget 2010103 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 TownsendFinal Budget 2010104 CITY OF PORT TOWNSEND Fund Summary Firemen's Pension Fund BudgetBudget YearYearIncrease 20102009<Decrease> Revenues By Source Real Property Tax34,000$ 73,000$ (39,000)$ Fire Insurance Premium Tax3,978 3,978 - Investment Interest 1,688 1,943 (255) Total Revenues 39,666$ 78,921$ (39,255)$ Expenditures by Program Pension Benefits 105,012$ 86,539$ 18,473$ Total Expenditures 105,012$ 86,539$ 18,473$ Expenditures by Object Professional Services-$ 7,125$ (7,125)$ Interfund Services12,617 7,867 4,750 Pension Benefits 92,395 71,547 20,848 Total Expenditures 105,012$ 86,539$ 18,473$ Estimated Beginning Fund Balance337,514$ 345,133$ (7,619)$ Increase<Decrease> in Fund Balance(65,347) (7,619) (57,728) Estimated Ending Fund Balance 272,167$ 337,514$ (65,347)$ City of Port TownsendFinal Budget 2010105 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 TownsendFinal Budget 2010106 CITY OF PORT TOWNSEND Fund Summary Memorial Fund BudgetBudget YearYearIncrease 20102009<Decrease> Revenues By Source Contributions and Donations-$ -$ -$ Investment Interest 19 34 (15) Total Revenues19$ 34$ (15)$ Expenditures by Program Operations & Maintenance-$ -$ -$ Capital Improvements 3,000 3,000 - Total Expenditures 3,000$ 3,000$ -$ Expenditures by Object Professional Services-$ -$ -$ Capital Outlay 3,000 3,000 - Total Expenditures 3,000$ 3,000$ -$ Estimated Beginning Fund Balance4,686$ 7,652$ (2,966)$ Increase<Decrease> in Fund Balance(2,981) (2,966) (15) Estimated Ending Fund Balance 1,705$ 4,686$ (2,981)$ City of Port TownsendFinal Budget 2010107 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 TownsendFinal Budget 2010108 CITY OF PORT TOWNSEND Fund Summary Golf Course Fund BudgetBudget YearYearIncrease 20102009<Decrease> Revenues By Source Contributions and Donations-$ -$ -$ Facility Rentals - Long Term20,000 20,000 - Interfund Loans Received- 125,000 (125,000) Investment Interest 196 13 184 Total Revenues 20,196$ 145,013$ (124,816)$ Expenditures by Program Operations & Maintenance13,200$ 25,700$ (12,500)$ Operating Transfers-Capital Improvement Fund- 125,000 (125,000) Capital Improvements- - - Total Expenditures 13,200$ 150,700$ (137,500)$ Expenditures by Object Professional Services-$ -$ -$ Operating Transfers- 125,000 (125,000) Repairs and Maintenance12,000 12,000 - Interfund Charges1,200 13,700 (12,500) Capital Outlay- - - Total Expenditures 13,200$ 150,700$ (137,500)$ Estimated Beginning Fund Balance6,546$ 12,234$ (5,687)$ Increase<Decrease> in Fund Balance6,996 (5,687) 12,684 Estimated Ending Fund Balance 13,543$ 6,546$ 6,996$ City of Port TownsendFinal Budget 2010109 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 TownsendFinal Budget 2010110 CITY OF PORT TOWNSEND Fund Summary NW Maritime Agency Fund BudgetBudget YearYearIncrease 20102009<Decrease> Revenues By Source Federal Grants - Pass Through-$ -$ -$ State IAC grant - Pass Through- - - Investment Interest 0 (0) 0 Total Revenues 0$ (0)$ 0$ Expenditures by Program Subrecipient Pass Through-$ -$ -$ Capital Improvements- - - Total Expenditures-$ -$ -$ Estimated Beginning Fund Balance2$ 2$ (0)$ Increase<Decrease> in Fund Balance0 (0) 0 Estimated Ending Fund Balance 2$ 2$ 0$ City of Port TownsendFinal Budget 2010111 Appendices Budget Summary – Revenues, Expenditures and Fund Balances – Actual to Budget 2006 to 2010 Tax Levy Rate History Property Tax Levy Rate by Tax District 2010 Personnel Services Employee FTE (full time equivalences) staffing table 2010 Budget Ordinance No. 3028 2010 Property Tax Levy Ordinance No. 3027 Glossary City of Port TownsendFinal Budget 2010112 City of Port Townsend Budget Summary-Revenues, Expenditures and Fund BalancesActuals to Budget 2006 to 2010200620072008 20092010BudgetPer cent City Fund A ctual A ctual A ctual Budget Budget Change Change General Fund Beginning Fund Balance479,127$ 271,032$ 295,590$ 230,976$ 155,518$ (75,458)$ -32.7% Revenues6,781,342 7,348,818 7,526,759 7,518,955 7,109,996 (408,959) -5.4% Expenditures6,986,143 7,313,853 7,591,373 7,594,413 6,705,786 (888,627) -11.7% Ending Fund Balance274,326$ 305,998$ 230,976 $ 155,518 $ 559,729 $ 404,210 $ Public Works Admin & Engineering FundBeginning Fund Balance -$ -$ - $ 12,505$ 4,600$ (7,905)$ -63.2% Revenues805,536 939,386 1,080,404 1,269,096 1,173,995 (95,101) -7.5% Expenditures805,536 939,386 1,067,899 1,277,001 1,114,065 (162,936) -12.8% Ending Fund Balance - $ 0 $ 12,505$ 4,600 $ 64,531 $ 59,930 $ Library Fund Beginning Fund Balance -$ -$ -$ - $ 40,979$ 40,979$ Revenues670,641 737,547 797,458 975,033 997,523 22,490 2.3% Expenditures670,641 737,547 797,458 934,054 988,071 54,017 5.8% Ending Fund Balance - $ - $ - $ 40,979$ 50,431 $ 9,453 $ Community Services Fund Beginning Fund Balance -$ -$ (0)$ 143$ 40,921$ 40,778 $ 28456.2% Revenues739,308 777,901 821,150 1,180,460 1,378,664 198,204 16.8% Expenditures 739,308 777,901 821,006 1,139,682 1,417,325 277,643 24.4% Ending Fund Balance - $ - $ 143$ 40,921 $ 2,260 $ (38,661)$ Fire & EMS Services Fund Beginning Fund Balance - $ 17,094$ -$ (0)$ (0)$ - $ 0.0% Revenues1,546,215 1,205,440 1,199,339 1,227,088 1,244,671 17,583 1.4% Expenditures1,529,121 1,219,092 1,199,339 1,227,088 1,244,671 17,583 1.4% Ending Fund Balance17,094$ 3,442$ -$ - $ - $ -$ City of Port Townsend Final Budget 2010 113 City of Port Townsend Budget Summary-Revenues, Expenditures and Fund BalancesActuals to Budget 2006 to 2010200620072008 20092010BudgetPer cent City Fund A ctual A ctual A ctual Budget Budget Change Change Local Improvement District #1 Beginning Fund Balance2,260$ -$ -$ 35$ 35$ - $ 0.0% Revenues Expenditures2,260 - - - - - Ending Fund Balance - $ - $ -$ 35 $ 35 $ -$ Local Improvement District #2 Beginning Fund Balance3,052$ -$ -$ 20$ 20$ - $ 0.0% Revenues Expenditures3,052 - - - - - Ending Fund Balance - $ - $ -$ 20 $ 20 $ -$ Drug Enforcement & EducationBeginning Fund Balance64$ 659$ 659$ 2,541$ 2,543$ 2 $ 0.1% Revenues - - 1,882 2 2 - 0.0% Expenditures - - - - - - Ending Fund Balance64$ 659$ 2,541 $ 2,543 $ 2,545 $ 2 $ Contingency Fund Beginning Fund Balance151,494$ 160,876$ 168,602$ 73,444$ 100,580$ 27,136$ 36.9% Revenues6,381 7,725 3,849 27,136 10,402 (16,733) -61.7% Expenditures - - 99,006 - - - Ending Fund Balance157,875$ 168,602$ 73,444 $ 100,580 $ 110,982 $ 10,402 $ Street Fund Beginning Fund Balance147,878$ 142,606$ 146,671$ 163,326$ 25,135$ (138,191)$ -84.6% Revenues430,536 639,832 735,242 784,953 753,519 (31,434) -4.0% Expenditures495,364 544,521 718,587 923,144 759,189 (163,955) -17.8% Ending Fund Balance83,051$ 237,917$ 163,326 $ 25,135 $ 19,466 $ (5,670)$ City of Port Townsend Final Budget 2010 114 City of Port Townsend Budget Summary-Revenues, Expenditures and Fund BalancesActuals to Budget 2006 to 2010200620072008 20092010BudgetPer cent City Fund A ctual A ctual A ctual Budget Budget Change Change Lodging Tax Fund Beginning Fund Balance176,186$ 213,385$ 231,342$ 133,685$ 28,332$ (105,353)$ -78.8% Revenues340,739 360,289 354,157 344,991 350,113 5,122 1.5% Expenditures303,540 342,331 451,815 450,344 370,333 (80,012) -17.8% Ending Fund Balance213,385$ 231,343$ 133,684 $ 28,332 $ 8,112 $ (20,219)$ Community Development Block Grant FundBeginning Fund Balance65,243$ 80,241$ 132,071$ 149,988$ 150,841$ 853 $ 0.6% Revenues37,349 51,830 43,042 495,853 10,754 (485,099) -97.8% Expenditures22,351 - 25,125 495,000 100,000 (395,000) -79.8% Ending Fund Balance80,241$ 132,071$ 149,988 $ 150,841 $ 61,595 $ (89,246)$ Water Sewer Fund Beginning Fund Balance4,992,135$ 5,134,029$ 4,196,742$ 4,218,799$ 2,669,888$ (1,548,911)$ -36.7% Revenues4,705,618 5,079,065 4,919,724 4,364,288 4,369,334 5,046 0.1% Expenditures4,590,915 5,548,531 4,897,667 5,913,199 6,208,420 295,221 5.0% Ending Fund Balance5,106,839$ 4,664,562$ 4,218,799$ 2,669,888 $ 830,802 $ (1,839,086)$ Stormwater Fund Beginning Fund Balance369,021$ 501,531$ 443,119$ 545,131$ 523,450$ (21,681)$ -4.0% Revenues559,614 638,628 601,770 519,000 523,234 4,234 0.8% Expenditures 427,104 631,842 499,758 540,681 842,425 301,745 55.8% Ending Fund Balance501,531$ 508,317$ 545,131 $ 523,450 $ 204,258 $ (319,192)$ Equipment Rental Fund Beginning Fund Balance921,755$ 908,894$ 507,167$ 755,180$ 811,332$ 56,152$ 7.4% Revenues712,761 879,660 1,116,506 1,065,348 1,160,563 95,215 8.9% Expenditures725,622 1,284,515 868,493 1,009,196 944,461 (64,735) -6.4% Ending Fund Balance908,894$ 504,039$ 755,180 $ 811,332 $ 1,027,434 $ 216,102 $ City of Port Townsend Final Budget 2010 115 City of Port Townsend Budget Summary-Revenues, Expenditures and Fund BalancesActuals to Budget 2006 to 2010200620072008 20092010BudgetPer cent City Fund A ctual A ctual A ctual Budget Budget Change Change Firemen's Pension Fund Beginning Fund Balance276,943$ 296,382$ 314,731$ 345,133$ 337,514$ (7,619)$ -2.2% Revenues92,402 91,578 103,055 78,921 39,666 (39,255) -49.7% Expenditures72,962 73,229 72,653 86,539 105,012 18,473 21.3% Ending Fund Balance296,382$ 314,731$ 345,133 $ 337,514 $ 272,167 $ (65,347)$ Capital Improvement Fund - General GovernmentBeginning Fund Balance645,396$ 396,357$ 80,969$ 6,524,771$ 5,885,301$ (639,470)$ -9.8% Revenues2,059,184 1,076,402 9,087,015 4,476,468 11,647,625 7,171,157 160.2% Expenditures2,308,223 1,421,728 2,643,213 5,115,938 16,413,309 11,297,371 220.8% Ending Fund Balance396,357$ 51,032$ 6,524,771 $ 5,885,301 $ 1,119,618 $ (4,765,683)$ System Development Charges FundBeginning Fund Balance412,015$ 589,640$ 613,018$ 594,984$ 277,626$ (317,359)$ -53.3% Revenues312,625 392,695 237,034 172,641 171,329 (1,313) -0.8% Expenditures135,000 351,368 255,069 490,000 365,000 (125,000) -25.5% Ending Fund Balance589,640$ 630,968$ 594,984 $ 277,626 $ 83,954 $ (193,671)$ Transmission Line Replacement FundBeginning Fund Balance3,237,983$ 3,093,228$ 3,288,285$ 3,400,812$ 3,501,233$ 100,422$ 3.0% Revenues229,856 206,290 117,845 258,422 227,055 (31,367) -12.1% Expenditures 374,611 11,233 5,318 158,000 33,000 (125,000) -79.1% Ending Fund Balance3,093,228$ 3,288,285$ 3,400,812$ 3,501,233 $ 3,695,288 $ 194,055 $ G.O. Debt Service Fund Beginning Fund Balance51,168$ 53,975$ 19,510$ 3,572$ 2,913$ (659) $ -18.4% Revenues628,511 589,089 784,469 995,712 1,064,384 68,671 6.9% Expenditures625,703 639,338 800,407 996,371 1,000,392 4,021 0.4% Ending Fund Balance53,975$ 3,725$ 3,572 $ 2,913 $ 66,905 $ 63,992 $ City of Port Townsend Final Budget 2010 116 City of Port Townsend Budget Summary-Revenues, Expenditures and Fund BalancesActuals to Budget 2006 to 2010200620072008 20092010BudgetPer cent City Fund A ctual A ctual A ctual Budget Budget Change Change 78 Water Sewer Revenue Bond FundBeginning Fund Balance46,191$ 45,456$ 46,271$ 46,547$ 49,244$ 2,697$ 5.8% Revenues20,014 26,065 24,776 26,447 23,197 (3,250) -12.3% Expenditures20,750 25,250 24,500 23,750 23,000 (750) -3.2% Ending Fund Balance45,456$ 46,271$ 46,547 $ 49,244 $ 49,441 $ 197 $ 92/98 Water Sewer Revenue Bond Res. FundBeginning Fund Balance401,754$ 431,064$ 453,410$ 465,632$ 469,462$ 3,829$ 0.8% Revenues29,310 22,346 12,222 3,829 1,878 (1,952) -51.0% Expenditures - - - - - - Ending Fund Balance431,064$ 453,410$ 465,632 $ 469,462 $ 471,340 $ 1,878 $ 92 Water Sewer Revenue Bond Red. FundBeginning Fund Balance44,586$ 52,232$ 59,852$ 65,871$ 65,723$ (148) $ -0.2% Revenues610,598 605,830 608,374 600,672 606,763 6,091 1.0% Expenditures602,952 598,210 602,355 600,820 607,500 6,680 1.1% Ending Fund Balance52,232$ 59,852$ 65,871 $ 65,723 $ 64,986 $ (737)$ Utility Construction Fund Beginning Fund Balance114,405$ 46,196$ 36,672$ 2,292$ 205,642$ 203,350$ 8871.0% Revenues76,859 492,534 345,389 865,000 965,323 100,323 11.6% Expenditures 145,068 502,058 379,769 661,650 1,078,000 416,350 62.9% Ending Fund Balance46,196$ 36,672$ 2,292 $ 205,642 $ 92,965 $ (112,677)$ NW Maritime Center Agency FundBeginning Fund Balance3,028$ 2$ 3$ 2$ 2$ (0) $ -0.1% Revenues 2 72,402 329,999 577,500 136,500 (441,000) -76.4% Expenditures3,027 72,401 330,000 577,500 136,500 (441,000) -76.4% Ending Fund Balance 2$ 3$ 2$ 2 $ 2 $ 0 $ City of Port Townsend Final Budget 2010 117 City of Port Townsend Budget Summary-Revenues, Expenditures and Fund BalancesActuals to Budget 2006 to 2010200620072008 20092010BudgetPer cent City Fund A ctual A ctual A ctual Budget Budget Change Change Golf Course Fund Beginning Fund Balance-$ (834)$ 8,021$ 12,234$ 6,546$ (5,687)$ -46.5% Revenues19,327 17,708 19,861 145,013 20,196 (124,816) -86.1% Expenditures20,161 8,853 15,648 150,700 13,200 (137,500) -91.2% Ending Fund Balance(834)$ 8,021$ 12,234 $ 6,546 $ 13,543 $ 6,996 $ Memorial Fund Beginning Fund Balance4,396$ 27,290$ 20,130$ 7,652$ 4,686$ (2,966)$ -38.8% Revenues24,297 8,147 6,085 34 19 (15) -44.9% Expenditures1,404 15,307 18,562 3,000 3,000 - 0.0% Ending Fund Balance27,290$ 20,130$ 7,652 $ 4,686 $ 1,705 $ (2,981)$ City of Port Townsend Final Budget 2010 118 City Tax Levy Rate History per $1,000 Assessed Value $0.00$0.50$1.00$1.50$2.00$2.50 19941995199619971998199920002001200220032004200520062007200820092010 City of Port Townsend Final Budget 2010 119 Total City Property Tax Levy by District 2010County, $1,923,283, 17%Conservation Futures, $54,233, 0% Port, $230,435, 2%PUD, $102,282, 1% City General, $2,738,567, 24% State, $2,829,804, 25%Local School, $2,704,240, 24% City EMS, $406,900, 4%Hospital, $334,696, 3% City of Port Townsend Final Budget 2010 120 Personnel Services The City of Port Townsend provides quality services and programs for its citizens with a responsive staff of 88 full-time and 40 part-time budgeted positions for 2010. 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' did not receive a COLA for 2010. Police Union received a COLA increase of 1.0% in January 2010. Non-represented employees did not receive a COLA increase in 2010. 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, 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 Officers’ 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 5.24% 8.46% 13.70% PERS I 5.31% 6.00% 11.31% PERS II 5.31% 3.90% 9.21% PERS III 5.31% variable variable The City of Port Townsend pays $935.00 for medical, dental and vision coverage for employees in the general government and $991.96 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 (47 members, contract for 2009-2010.) • Police Department Teamsters Local 589 (13 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 TownsendFinal Budget 2010121 Personnel Services Police Department Officer Salary Schedule Classification Minimum Maximum Police Sergeant $29.26 $33.12 Police Officer $24.81 $28.07 Library Department Non-represented Salary Schedule Classification Minimum Maximum Sr. Associate II $18.28 $22.85 Senior Associate $15.92 $20.88 Library Associate $14.58 $18.23 Library Assistant $13.10 $16.93 Processing Tech. $12.34 $15.42 Courier/Page $8.59 $10.74 Page $8.59 $10.74 General Government Salary Schedule Classification Minimum Maximum Maintenance Worker 1 $18.74 $21.21 Maintenance Worker 2 $19.35 $21.90 Operator 1 $21.90 $24.79 Operator 2 $23.30 $26.37 Lead Operator $25.06 $28.36 Crew Chief $26.94 $30.49 Mechanic $23.93 $27.09 Administrative Assistant 1 $16.29 $18.44 Administrative Assistant 2 $18.60 $21.05 Administrative Assistant 3 $24.35 $27.55 Building Official $32.97 $37.31 Development Review Spec. $24.64 $27.88 GIS Coordinator $26.43 $29.92 Inspector $25.81 $29.21 IS Network Administrator $30.45 $34.46 Accounting Assistant 1 $18.60 $21.05 Lead Utility Billing Clerk $20.28 $22.95 Accounting Assistant 2 $21.09 $23.87 Project/Grant Accountant $22.80 $25.80 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 $7844.35 $9805.44 City Attorney $6332.30 $7915.37 Deputy Prosecuting Attorney $4433.50 $5541.87 City Clerk $4849.82 $6062.27 Deputy City Clerk $4087.64 $5109.55 Administrative Assistant 1 $3102.71 $3878.39 Administrative Assistant 2 $3468.83 $4336.04 Administrative Assistant 3 $3834.96 $4793.70 DSD Director $6004.72 $7505.90 DSD Assist. Director $5545.44 $6931.80 Planning Director $6004.72 $7505.90 Senior Planner $5245.23 $6556.54 Building Official $5175.78 $6469.72 Planner 2 $4221.52 $5276.90 Business Sys Analyst/Grants $4319.34 $5399.17 Finance Director $6765.64 $8457.05 Deputy Finance Director $5295.30 $6619.12 Payroll/Benefits Admin. $3466.02 $4332.53 Library Director $5484.90 $6856.12 Library Dept. Manager $4025.32 $5031.65 Associate Librarian $3419.32 $4274.15 Police Chief $5650.03 $7062.54 Deputy Police Chief $5324.54 $6655.67 Public Works Director $7035.87 $8794.84 Operations Mgr Class 1 $4957.84 $6197.30 Operations Mgr Class 2 $5453.63 $6817.04 Water Resource/Asst. Ops Mgr $4957.84 $6197.30 City Engineer $5561.22 $6951.52 Project/Civil Engineer $5378.50 $6723.12 Develop. Review Engineer I $4986.05 $6232.56 Develop. Review Engineer II $5361.65 $6702.06 Project Manager $5584.14 $6980.18 Civil Engineer/EIT $5378.50 $6723.12 Operations Mgr-Parks &Rec $4957.84 $6197.30 Pool Manager $3076.70 $3845.88 *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 TownsendFinal Budget 2010122 City Staffing Authorization in FTE's Authorization in FTE (full-time equivalents)Department/Division199920002001200220032004200520062007200820092010ChangeGeneral Fund:Mayor/Council 1.00.00.40.40.40.40.00.00.00.00.00.00.0 City Manager 1.02.02.12.82.02.02.02.02.02.02.02.00.0 City Attorney 2.61.52.12.12.02.02.02.02.02.02.03.01.0Development Service Department8.98.57.57.87.98.08.08.08.08.05.26.00.8Planning Department 2.02.02.01.51.50.0 Finance 9.09.09.12.32.32.32.33.63.63.54.54.1-0.4 Police Administration 4.04.05.06.05.04.15.05.05.05.00.0 Police Operations 16.516.512.013.012.313.014.313.215.515.514.514.50.0 City Clerk 1.41.42.12.12.02.52.52.32.32.32.02.00.0 PEG TV Studio 0.00.00.00.30.30.30.30.00.00.00.00.00.0 City Events 0.00.00.00.00.00.00.01.01.01.00.00.00.0 City Facilities 0.60.00.00.20.30.30.31.31.31.32.32.30.0 Public Restrooms 0.30.00.00.00.00.00.00.00.00.00.00.00.0 Grant Administration 0.00.00.00.00.00.00.00.00.00.01.01.00.0 Subtotal - General Fund 41.338.939.335.034.436.836.739.542.642.539.941.31.4 Other Funds:Street 2.44.93.31.72.12.91.91.92.52.52.32.50.2 Fire/EMS 11.010.04.23.83.85.04.23.80.00.00.00.00.0 EMS 8.88.28.210.58.87.70.00.00.00.00.0 Parks Maintenance 3.53.72.02.53.34.03.33.33.33.35.36.31.0 Recreation *2.52.42.63.10.00.00.00.00.00.00.00.00.0Pool 4.56.23.73.74.54.14.54.94.14.54.76.21.5Public Works Administration5.04.13.12.12.02.02.02.02.02.02.02.00.0Public Works Engineering 7.56.05.04.56.55.38.37.37.88.510.510.0-0.5 Library 7.68.57.38.38.39.710.410.19.69.810.911.70.8 Capital Improvement 0.40.40.40.00.00.00.00.00.0 City of Port Townsend Final Budget 2010 123 City Staffing Authorization in FTE's Authorization in FTE (full-time equivalents)Department/Division199920002001200220032004200520062007200820092010ChangeWater/Sewer: Utility Billing 5.55.55.55.54.64.63.73.75.11.4 Water Distribution 5.77.54.06.06.15.85.85.85.65.65.65.60.0 Water Quality 4.34.00.81.01.01.01.01.01.01.01.01.00.0 Wastewater Collection 2.31.51.71.72.53.32.53.23.23.23.23.20.0 Wastewater Treatment 3.53.53.33.33.64.63.33.33.33.33.33.30.0 Biosolids 2.52.52.32.32.32.32.32.32.32.32.32.30.0 Facilities Locates 1.50.50.00.00.00.00.00.00.00.00.0 Water Resources 0.91.01.01.01.01.01.01.01.01.00.0 Stormwater 2.31.51.73.33.84.53.42.82.83.83.83.80.0 Equipment Rental 2.32.02.01.81.51.51.52.52.52.52.52.50.0 Totals 108.2107.197.299.0100.5110.0106.7106.797.999.3101.7107.55.8*This includes an average of seasonal employees City of Port Townsend Final Budget 2010 124 Ordinance 3028 2010 Buctet Page 1 o f3 ORDINANCENO3028 AN ORDINANCE ADOPTING THEBUDGETFORTHECITYOFPORT TOWNSENDWASHINGTON FOR THEFISCALYEAR ENDING DECEMBER 31 2010 WHEREAS the CityManager ofthe City ofPort Townsend Washington completed and placed on file withthe City Clerk a proposedbudget andestimateofthe amountofmonies required tomeet the public expenses bondretirementand interest reserve fundsand expenses of government ofthe City forthefiscal year ending December 31 2010 the 2010 Preliminary Budget and a notice was published thatthe City Councilwould meet onthe16thofNovember 2009 atthe hourof 630 pm at City Hallforthe purpose of making and adopting a budget forthefiscal year 2010and giving taxpayers within the city limitsofthe City an opportunity to beheardabout the Preliminary Budget and WHEREAS the City Councildid meet in City CouncilChambers on November 16 2009 and December 72009 and considerthe matter of the2010 Preliminary Budget and WHEREAS the 2010 PreliminaryBudget does not exceedthelawfullimitof taxationallowed by law tobelevied onthe property withinthe City of PortTownsendforthe purposes setforth in the2010 PreliminaryBudget andtheestimated expenditures ineach fund set forthinthe2010 PreliminaryBudget are all necessary to carry onthe government of the City forfiscal year2010 and areall necessary tomeet thevariousneedsofthe City during the period NOW THEREFORE THECITYCOUNCIL OFTHE CITY OFPORT TOWNSEND WASHINGTON DOESORDAIN ASFOLLOWS Section1The budget forthe City of Port TownsendWashington forthefiscal year 2010 is herebyadopted at fundlevel assetforth in thedocumententitled City of Port Townsend Final Budget 2010three copies ofwhich areonfilewiththe City Clerk Section2 Estimated resourcesincluding fund balances for workingcapital for each separate fund ofthe City ofPort Townsend and aggregate totalsforallsuchfunds combined for the year 2010 aresetforth in summary form below and are herebyappropriated for expenditure at thefund level during the year 2010 OPERATINGFUNDS General PublicWorks Admin Engineering Library Community Services FireEMS Services APPROPRIATION 6705786 1114065 988071 1417235 1244671 City of Port TownsendFinal Budget 2010125 Ordinance 3028 2010 Budget Page 2 of3 Local Improvement District1 Local Improvement District 2 Drug Enforcement OPERATINGFUNDS Contingency Street Lodging Tax CommunityDevelopment Block Grant WaterSewer Utility Stormwater Utility Equipment Rental FiremensPension Operating Fund Subtotals CAPITAL DEBT AND TRUSTFUNDS CapitalImprovement SystemDevelopment Charges TransmissionLine Replacement GO DebtService 1978Water Sewer RevenueBondFund 19921998WaterSewerRevenue Bond ReserveFund 1992WaterSewer RevenueBond Redemption Utility ConstructionFund NWMaritime Agency GolfCourse Memorial Capital DebtTrust FundSubtotals GRANDTOTAL APPROPRIATION 759189 370333 100000 6208420 842425 944461 105012 20799758 APPROPRIATION 11582087 365000 33000 1000392 23000 607500 1078000 136500 13200 3000 14841679 35641437 Section 3 The City Clerkisdirected to transmit acertified copy ofthe City of Port Townsend Final Budget 2010 to theOfficeof StateAuditorand to the Association of Washington Cities Section 4 Thisordinance shalltakeeffect upon its passage approval and publication intheform and manner providedby law City of Port TownsendFinal Budget 2010126 Ordinance 3028 201D Budget Page 3 of 3 ADOPTED by the City Councilofthe City ofPort TownsendWashington at a regularmeeting thereof heldthis7th day ofDecember2009 Michelle SandovalMayor Attest fr Pamela Kolacy MMC City Clerk Approved as to form JohnWatts CityAttorney City of Port TownsendFinal Budget 2010127 City of Port TownsendFinal Budget 2010128 City of Port TownsendFinal Budget 2010129 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 TownsendFinal Budget 2010130 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 TownsendFinal Budget 2010131 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 TownsendFinal Budget 2010132 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 TownsendFinal Budget 2010133 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 TownsendFinal Budget 2010134 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 TownsendFinal Budget 2010135 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 TownsendFinal Budget 2010136 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 TownsendFinal Budget 2010137 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 TownsendFinal Budget 2010138 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 TownsendFinal Budget 2010139 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 TownsendFinal Budget 2010140 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 TownsendFinal Budget 2010141