HomeMy WebLinkAbout2020 Final Budget2020 City Manager Budget Message
Page 1 of 26
2020 CITY MANAGER BUDGET MESSAGE
This budget message provides details regarding the City Manager’s 2020 Proposed
Budget, a summary of the 2019 – 2022 strategic plan report, an overview of the 2019
Supplemental Budget request, and links to the 2018 Unaudited Financial Statements.
CITY OF PORT TOWNSEND VISION
A thriving community for all...
CITY OF PORT TOWNSEND MISSION STATEMENT
Champion aspirations for a thriving community as envisioned in our Comprehensive
Plan.
FINANCIAL PERFORMANCE HIGHLIGHTS
2018 UNAUDITED FINANCIAL STATEMENTS
The City filed its complete 2018 Annual Report prior to the State Auditor’s Office
deadline. The City was scheduled for a Single Audit related to federal grant funded
projects and a financial audit for 2018. The City’s federal awards did not reach the
required threshold for a federal Single Audit and the State Auditor’s Office requested
that the City delay its 2018 audit until 2020 at which time the Auditor’s office will conduct
a two-year audit. The 2018 unaudited financial reports that were filed with the State
Auditor’s Office can be located on the City’s website.
https://cityofpt.us/sites/default/files/fileattachments/finance/page/6561/2018_unaudited_f
inancial_statements.pdf
2019 BUDGET REVIEW
For Fiscal Year January 1, 2019 to December 31, 2019
2019 financial results indicate another strong year for the City of Port Townsend.
The General Government Funds (General, Street, Library, and Community Funds)
2020 Budget Section 1 (Updated 11/18/19) - Page 1 of 26
2020 City Manager Budget Message
Page 2 of 26
all met the Council’s reserve targets, while still funding some much needed police
vehicles and equipment from General Fund reserves. Operationally, 2019 was a
year of change that included the retirement of the City’s first City Manager, David
Timmons who departed in June after twenty years of service to the City. The
Council embarked on the process to recruit a new City Manager in early 2019 when the
City adopted its 2019-2022 Strategic Plan and a Governance Relationship Contract
establishing the expectations for a new City Manager. A robust community process was
led by a Community Task Force and an extensive search was conducted. The City’s
new City Manager, John Mauro, started employment in November 2019, after relocating
to Port Townsend with his family.
In addition to the recruitment of a new City Manager, a few of the City’s
accomplishments for the year include:
• Adoption of the Rainier/Howard Street sub area plan was the culmination of
years of work from the Planning Commission, City Council and City staff.
Development regulation changes were adopted in September of 2019 and, along
with infrastructure financed by the City, are targeted to improve economic
development in the area.
• The City continued its support of affordable housing through the development of
a Council Housing Committee, consideration of development related code
changes for housing, and consideration of additional fee waivers for non-profit
affordable housing providers. The City also negotiated an interlocal agreement
with Jefferson County to partner in efforts to address homelessness and housing
in our local communities.
• Addition of a Navigator program at the City Police Department, pairing a social
worker with our police officers to help community members navigate available
services.
• Completion of key City capital improvement projects including, the Visitor Center
plaza project and renovations at the Mountain View campus which provided
space planning and redesign for City departments and local community partners.
• The opening of the City’s dog park at Mountain View campus. The fencing for
this park was provided through a generous donation by local residents.
• Development of a Council Transportation Committee to address funding
strategies for transportation infrastructure, transportation plans and policies and
parking management/parking standards, as just a few of its initial tasks.
Throughout 2019, the City has continued to benefit from a strong economic
climate as revenues have exceeded expectations. The City has experienced an
increase in assessed property values and the number of utility accounts and business
licenses issued. Additionally, retail sales revenue is expected to meet budgetary
expectations for the year.
Preliminary property values received from the Jefferson County Assessor’s office show
that the City’s assessed values grew 13.1% over 2018. In addition, utility accounts
grew 1.0% over 2018; active business licenses are up by over 400, however, business
& occupation tax revenue is expected to decrease by 8.0% from 2018. Year to date
2019 figures indicate that construction activity has declined by 40.6% over 2018,
2020 Budget Section 1 (Updated 11/18/19) - Page 2 of 26
2020 City Manager Budget Message
Page 3 of 26
however, both accommodations and retail trade have increased by 5.1% and 10.6%,
respectively.
General fund revenues are expected to exceed original estimates by 3.8% or $342,544.
Included in this estimate are two accounting adjustments that have identical offsetting
expenditure amounts: 1) change in method of accounting for utility tax of $192,596 and
2) change in method of accounting for property tax for the firemen’s pension fund
allocation of $34,235. The majority of the remaining increase of $115,713 is $60,500 in
special purpose tax and $50,000 in permitting/zoning fees.
Real Estate Excise Tax is projected to reach $570,000 which is $60,000 or 11.8% more
than anticipated reflecting an active real estate market. Lodging Tax Revenue is also
expected to exceed the 2019 adopted budget by $10,000 indicating strong tourism
activity again this year.
The 2019 adopted budget included hiring one additional staff position in the
Community Services department. A full time Parks & Community Services
Administrative Specialist was hired in May to coordinate facility rentals, volunteer
activities and support the Parks, Recreation and Community Services Director.
Funding for this position was largely provided through the restructuring of prosecutorial
services for the City. The City contracted with the Jefferson County Prosecuting
Attorney’s Office in February 2019 to provide prosecutorial services for the City, with the
implementation of this contract, the City eliminated the full time Prosecutor Position.
The net annual savings for this service is $55,000.
The City’s first and only City Manager retired at the end of June 2019. An extensive
community engagement and interview process was held in early 2019. The City’s new
City Manager was selected in July and will officially assume this position on November
1, 2019.
Operating and capital expenditures continue to be closely monitored. A
supplemental budget was adopted in the first quarter of 2019 related to capital projects.
The remaining appropriations for projects that carried over from 2018 were add to the
2019 budgeted appropriations, such projects included: Mountain View Improvements,
Jefferson Street Sidewalk, Visitor Center, Sewer Outfall, and the Rainier Regional
Stormwater Facility. The second supplemental budget proposal includes final
adjustments related to the Mountain View Improvements project.
Additional proposed supplemental budget general government appropriation
items include:
Change of accounting method – In order to more closely align the City’s internal
financial reporting with the State Auditor’s Office reporting standards, a change in
accounting method for garbage utility taxes and property tax allocations to the firemen’s
pension was implemented. While these changes result in an increase in
appropriations, they are offset by corresponding revenue increases in the same fund.
2020 Budget Section 1 (Updated 11/18/19) - Page 3 of 26
2020 City Manager Budget Message
Page 4 of 26
The garbage utility tax accounting change for 2019 is $192,596 , the water/sewer/storm
utility tax accounting change for 2019 is $588,955, and the property tax allocation
change (firemen’s pension) is $34,235.
Purchase of police vehicles - The City Council authorized the purchase of three new
SUVs for the police department to replace Crown Victoria vehicles which have
exceeded their useful lives. The full outfitted SUVs are expected to be delivered befor e
the end of 2019 and will cost approximately $160,000. Fund balance reserves were
utilized to pay for this purchase of deferred equipment.
Parks, Recreation and Open Space (PROS) plan – City Council authorized a contract
with BERK Consulting for an amount not to exceed $90,000 to assist with the update of
the PROS plan. This engagement includes facilitation of a robust public process to
assess the community’s needs and desires for parks and recreation services now and in
the future. The plan must be adopted by March 1, 2020 for the City to be eligible for
recreation grants. The plan will be paid for through an interfund loan from the OGWS
(Transmission Line) Fund. Repayment of this loan from the Community Services Fund
will be made over the next three years (2020-2022) through the reduction in Mountain
View rent payments that begin in 2020.
General Government Union Contract – The City finalized negotiation of its General
Government Bargaining Agreement and obtained union membership approval in early
January 2019. As the contract was not finalized prior to the adoption of the 2019
budget, the budget included a General Fund reserve for wage adjustments for all City
funds. Each fund estimated a 2% wage adjustment and the contract was settled for a
4% wage adjustment for 2019. For equity purposes, the Council also authorized wage
increases for the non-represented employees of 4% for 2019 (effective January 15,
2019). The reserve total was $159,488 and the related actual wage impact for the
General Fund was $76,022 and the Community Services was $18,345.
Miscellaneous other proposed general government appropriation changes:
Additional unforeseen expenditures at the time the 2019 budget was adopted include
the following:
• $30,375 – Increased share of District Court Costs
• $9,350 – Voter election costs related to Fire annexation ballot measure
• $106,000 – General Fund transfer increase to the Community Services Fund to
cover operating and maintenance costs
• $23,200 – Portable audio/video recording systems (Body Cameras) in lieu of in
car COBAN recording systems
• $10,000 – City Manager relocation expenses
• $12,300 – Renovations to the City Administrative offices to create additional
office space and some other minor furnishing purchases
• $18,000 – Consulting agreement with the former City Manager for a six-month
period ending in December 2019
• $45,277 – MCS Consulting Services contract funding an additional 13 hours per
week of Navigator services
2020 Budget Section 1 (Updated 11/18/19) - Page 4 of 26
2020 City Manager Budget Message
Page 5 of 26
•$10,000 – Facilities general repairs and maintenance
•$31,000 – Mountain View pump and boiler repairs
•$16,013 – General operating supplies and small equipment for the Mountain
View campus
Proposed supplemental budget enterprise fund appropriation items include:
•Golf Course - $6,000 payment to the National Golf Foundation for the
completion of the golf course study.
•Wage adjustments - $100,500 for General Government Bargaining Unit
contracted wage increases.
•CERB loan payments - $63,161 based on final amortization schedule from the
Department of Commerce. This loan is for the Regional Stormwater Facility
that will be completed in 2020.
•Interfund loan - $90,000 loan from the OGWS (Transmission Line) Fund to the
Community Services Fund for the BERK Consulting contract for the
development of the PROS plan.
•Payment to the Port Townsend Paper Corporation - $128,416 for its share of a
Forest Service Grant for repair and maintenance of a road in the watershed
(offset by the revenue received from the U.S. Forest Service).
Proposed supplemental budget internal service fund appropriation items include:
•Fleet purchases - $130,000 for two trucks for the Water/Sewer department
which were approved by the City Council in early 2019.
Proposed supplemental budget general capital fund appropriation items include:
•Mountain View Phase III project costs increases of $65,402. These cost
increases were related to lead paint abatement and additional fire system
improvements added to the project.
2020 Budget Section 1 (Updated 11/18/19) - Page 5 of 26
2020 City Manager Budget Message
Page 6 of 26
The City proposed 2019 Supplemental Budget Fund summary is listed below:
20
1
8
20
1
9
20
1
9
20
1
9
20
1
9
20
1
9
20
1
9
20
1
9
20
1
9
En
d
i
n
g
F
u
n
d
Ba
l
a
n
c
e
Ad
o
p
t
e
d
Re
v
e
n
u
e
s
A
m
e
n
d
e
d
Re
v
e
n
u
e
s
Ad
o
p
t
e
d
Ex
p
e
n
s
e
s
A
m
e
n
d
e
d
Ex
p
e
n
s
e
s
Ad
o
p
t
e
d
Re
v
v
s
.
E
x
p
Am
e
n
d
e
d
Re
v
v
s
.
E
x
p
P
r
o
p
o
s
e
d
Su
p
p
l
e
m
e
n
t
a
l
Ap
p
r
o
p
r
i
a
t
i
o
n
P
r
o
j
e
c
t
e
d
En
d
i
n
g
F
u
n
d
Ba
l
a
n
c
e
GE
N
E
R
A
L
F
U
N
D
1,
9
0
4
,
7
9
0
9,
1
0
1
,
5
4
3
10
,
0
3
3
,
0
4
2
9,
0
9
7
,
1
1
5
10
,
2
8
6
,
4
5
7
4,
4
2
8
(
2
5
3
,
4
1
5
)
1,
1
8
9
,
3
4
2
1,
6
5
1
,
3
7
5
Dr
u
g
E
n
f
o
r
c
.
/
C
o
n
t
i
n
g
e
n
c
y
18
2
,
4
8
9
1,
2
0
0
3,
2
0
0
-
-
1,
2
0
0
3,
2
0
0
18
5
,
6
8
9
St
r
e
e
t
26
0
,
8
5
5
87
0
,
8
0
3
86
6
,
1
4
1
93
0
,
5
7
3
89
5
,
6
4
0
(5
9
,
7
7
0
)
(2
9
,
4
9
9
)
23
1
,
3
5
6
Li
b
r
a
r
y
21
4
,
5
2
2
1,
0
9
7
,
1
4
4
1,
1
5
3
,
4
5
6
1,
1
6
1
,
6
7
3
1,
1
2
7
,
0
7
1
(6
4
,
5
2
9
)
26
,
3
8
5
24
0
,
9
0
7
Re
a
l
E
s
t
a
t
e
E
x
c
i
s
e
T
a
x
38
0
,
2
8
4
51
2
,
2
0
0
57
7
,
2
2
7
51
0
,
0
0
0
51
0
,
0
0
0
2,
2
0
0
67
,
2
2
7
44
7
,
5
1
1
Lo
d
g
i
n
g
T
a
x
24
6
,
9
0
8
55
0
,
7
5
0
56
4
,
4
1
6
57
2
,
9
0
8
57
3
,
5
3
6
(2
2
,
1
5
8
)
(9
,
1
2
0
)
62
8
23
7
,
7
8
8
Fi
r
e
/
E
M
S
4,
6
2
2
2,
4
1
2
,
5
7
4
2,
4
1
5
,
1
7
1
2,
4
1
1
,
5
7
4
2,
4
1
5
,
0
0
0
1,
0
0
0
17
1
3,
4
2
6
4,
7
9
3
Af
f
o
r
d
a
b
l
e
H
o
u
s
i
n
g
21
,
0
8
0
10
,
1
0
0
10
,
4
5
4
10
,
0
0
0
10
,
0
0
0
10
0
45
4
21
,
5
3
4
Co
m
m
u
n
i
t
y
D
e
v
e
l
o
p
m
e
n
t
B
l
o
c
k
G
r
a
n
t
1
7
6
,
6
1
7
14
,
4
2
4
19
,
7
1
2
15
,
0
0
0
15
,
0
0
0
(5
7
6
)
4,
7
1
2
18
1
,
3
2
9
Co
m
m
u
n
i
t
y
S
e
r
v
i
c
e
s
10
1
,
0
0
6
2,
0
1
6
,
7
9
2
2,
2
4
2
,
6
3
0
2,
0
1
0
,
7
7
5
2,
2
4
1
,
6
3
3
6,
0
1
7
99
7
23
0
,
8
5
8
10
2
,
0
0
3
TO
T
A
L
S
P
E
C
I
A
L
R
E
V
F
U
N
D
S
1,
5
8
8
,
3
8
3
7,
4
8
5
,
9
8
7
7,
8
5
2
,
4
0
7
7,
6
2
2
,
5
0
3
7,
7
8
7
,
8
8
0
(1
3
6
,
5
1
6
)
64
,
5
2
7
23
4
,
9
1
2
1,
6
5
2
,
9
1
0
DE
B
T
S
E
R
V
I
C
E
F
U
N
D
89
,
9
0
5
1,
6
9
8
,
0
3
5
1,
6
9
4
,
2
1
0
1,
6
8
6
,
8
5
5
1,
6
8
9
,
8
5
5
11
,
1
8
0
4,
3
5
5
3,
0
0
0
94
,
2
6
0
Ge
n
e
r
a
l
C
a
p
i
t
a
l
1,
5
8
9
,
7
3
9
51
8
,
5
8
1
59
9
,
6
0
0
2,
0
7
7
,
6
8
1
2,
1
4
3
,
0
8
3
(1
,
5
5
9
,
1
0
0
)
(1
,
5
4
3
,
4
8
3
)
65
,
4
0
2
46
,
2
5
6
St
r
e
e
t
C
a
p
i
t
a
l
26
2
,
3
3
3
2,
3
9
1
,
8
2
9
1,
7
5
4
,
1
5
5
2,
5
2
6
,
7
4
4
1,
8
4
3
,
4
3
2
(1
3
4
,
9
1
5
)
(8
9
,
2
7
7
)
17
3
,
0
5
6
CA
P
I
T
A
L
P
R
O
J
E
C
T
S
F
U
N
D
S
1,
8
5
2
,
0
7
2
2,
9
1
0
,
4
1
0
2,
3
5
3
,
7
5
5
4,
6
0
4
,
4
2
5
3,
9
8
6
,
5
1
5
(1
,
6
9
4
,
0
1
5
)
(1
,
6
3
2
,
7
6
0
)
65
,
4
0
2
21
9
,
3
1
2
Go
l
f
C
o
u
r
s
e
27
,
7
2
8
10
,
2
5
0
8,
7
5
0
18
,
2
2
9
24
,
2
2
9
(7
,
9
7
9
)
(1
5
,
4
7
9
)
6,
0
0
0
12
,
2
4
9
Sy
s
t
e
m
D
e
v
e
l
o
p
m
e
n
t
91
2
,
6
7
4
33
8
,
4
5
2
31
7
,
2
2
8
60
0
,
0
0
0
40
5
,
0
0
0
(2
6
1
,
5
4
8
)
(8
7
,
7
7
2
)
82
4
,
9
0
2
Wa
t
e
r
/
S
e
w
e
r
O
p
e
r
a
t
i
o
n
s
2,
1
6
0
,
2
2
9
6,
9
5
7
,
3
6
6
7,
9
5
4
,
4
7
3
7,
0
5
9
,
9
9
4
7,
9
3
0
,
6
6
0
(1
0
2
,
6
2
8
)
23
,
8
1
3
87
0
,
6
6
6
2,
1
8
4
,
0
4
2
Wa
t
e
r
/
S
e
w
e
r
C
a
p
i
t
a
l
1,
5
9
6
,
7
8
5
3,
1
0
0
,
4
5
4
2,
5
6
7
,
8
1
8
2,
7
5
6
,
1
7
0
1,
9
9
4
,
8
2
1
34
4
,
2
8
4
57
2
,
9
9
7
2,
1
6
9
,
7
8
2
Tr
a
n
s
m
i
s
i
s
o
n
L
i
n
e
F
u
n
d
71
9
,
1
7
7
62
,
0
0
0
25
3
,
1
3
6
65
,
0
4
5
28
3
,
4
6
1
(3
,
0
4
5
)
(3
0
,
3
2
5
)
21
8
,
4
1
6
68
8
,
8
5
2
St
o
r
m
O
p
e
r
a
t
i
o
n
s
16
6
,
3
8
7
74
7
,
8
5
9
96
0
,
6
2
1
78
1
,
0
7
4
98
6
,
1
5
0
(3
3
,
2
1
5
)
(2
5
,
5
2
9
)
20
5
,
0
7
6
14
0
,
8
5
8
St
o
r
m
C
a
p
i
t
a
l
1,
7
7
5
1,
0
9
0
,
0
0
0
53
0
,
6
1
4
1,
0
7
8
,
0
0
0
51
8
,
1
7
0
12
,
0
0
0
12
,
4
4
4
14
,
2
1
9
EN
T
E
R
P
R
I
S
E
F
U
N
D
S
5,
5
8
4
,
7
5
5
12
,
3
0
6
,
3
8
1
12
,
5
9
2
,
6
4
0
12
,
3
5
8
,
5
1
2
12
,
1
4
2
,
4
9
1
(5
2
,
1
3
1
)
45
0
,
1
4
9
1,
3
0
0
,
1
5
8
6,
0
3
4
,
9
0
4
Pu
b
l
i
c
W
o
r
k
s
A
d
m
i
n
28
,
8
4
7
61
1
,
8
0
2
50
1
,
1
7
1
59
4
,
2
7
2
50
7
,
0
2
1
17
,
5
3
0
(5
,
8
5
0
)
22
,
9
9
7
IT
E
q
u
i
p
m
e
n
t
O
&
M
-
35
8
,
9
7
9
35
9
,
0
4
0
35
5
,
8
7
8
35
5
,
8
7
8
3,
1
0
1
3,
1
6
2
3,
1
6
2
IT
E
q
u
i
p
m
e
n
t
R
e
p
l
a
c
e
m
e
n
t
-
56
,
6
1
7
56
,
6
1
7
57
,
0
0
0
56
,
6
1
7
(3
8
3
)
-
-
Fl
e
e
t
E
q
u
i
p
m
e
n
t
O
&
M
-
52
8
,
4
1
0
52
9
,
3
7
6
52
9
,
4
3
2
48
4
,
8
6
0
(1
,
0
2
2
)
44
,
5
1
6
44
,
5
1
6
Fl
e
e
t
E
q
u
i
p
m
e
n
t
R
e
p
l
a
c
e
m
e
n
t
1,
4
9
9
,
7
6
2
20
4
,
9
5
1
24
5
,
1
5
1
-
13
0
,
0
0
0
20
4
,
9
5
1
11
5
,
1
5
1
13
0
,
0
0
0
1,
6
1
4
,
9
1
3
En
g
i
n
e
e
r
i
n
g
S
e
r
v
i
c
e
s
15
9
,
5
4
8
89
4
,
0
0
0
80
9
,
2
0
7
98
2
,
3
1
0
91
6
,
4
6
6
(8
8
,
3
1
0
)
(1
0
7
,
2
5
9
)
52
,
2
8
9
Un
e
m
p
l
o
y
m
e
n
t
S
e
l
f
-
I
n
s
u
r
a
n
c
e
25
,
0
7
8
20
,
1
8
0
1,
9
3
1
20
,
0
0
0
1,
5
0
0
18
0
43
1
25
,
5
0
9
IN
T
E
R
N
A
L
S
E
R
V
I
C
E
F
U
N
D
S
1,
7
1
3
,
2
3
5
2,
6
7
4
,
9
3
9
2,
5
0
2
,
4
9
3
2,
5
3
8
,
8
9
2
2,
4
5
2
,
3
4
2
13
6
,
0
4
7
50
,
1
5
1
13
0
,
0
0
0
1,
7
6
3
,
3
8
6
Fi
r
e
m
e
n
'
s
P
e
n
s
i
o
n
24
6
,
3
8
2
35
,
7
3
5
38
,
6
0
6
17
,
5
5
1
26
,
1
7
9
18
,
1
8
4
12
,
4
2
7
8,
6
2
8
25
8
,
8
0
9
Cu
s
t
o
d
i
a
l
/
R
e
f
u
n
d
a
b
l
e
D
e
p
o
s
i
t
s
23
3
,
9
3
5
-
1,
4
0
4
-
-
-
1,
4
0
4
23
5
,
3
3
9
Me
m
o
r
i
a
l
F
u
n
d
2,
5
4
9
-
-
-
-
-
-
2,
5
4
9
FI
D
U
C
I
A
R
Y
F
U
N
D
S
48
2
,
8
6
6
35
,
7
3
5
40
,
0
1
0
17
,
5
5
1
26
,
1
7
9
18
,
1
8
4
13
,
8
3
1
8,
6
2
8
49
6
,
6
9
7
GR
A
N
D
T
O
T
A
L
$1
3
,
2
1
6
,
0
0
7
$3
6
,
2
1
3
,
0
3
0
$3
7
,
0
6
8
,
5
5
7
$3
7
,
9
2
5
,
8
5
3
$3
8
,
3
7
1
,
7
1
9
($
1
,
7
1
2
,
8
2
3
)
($
1
,
3
0
3
,
1
6
2
)
2,
9
3
1
,
4
4
2
$1
1
,
9
1
2
,
8
4
5
CI
T
Y
O
F
P
O
R
T
T
O
W
N
S
E
N
D
20
1
9
S
U
P
P
L
E
M
E
N
T
A
L
B
U
D
G
E
T
F
U
N
D
S
U
M
M
A
R
Y
2020 Budget Section 1 (Updated 11/18/19) - Page 6 of 26
2020 City Manager Budget Message
Page 7 of 26
2020 BUDGET MESSAGE
While 2020 shows signs of being a solid year financially for the City of Port
Townsend, the local economy is showing some signs of slowing. 2019 reflected
strong levels of activity in the City’s competitive housing market and retail sales for
goods and services in the City have continued at pre-2019 levels but commercial and
government construction has declined. As a result, 2020 revenue projections for retail
sales tax are below our 2018 experience rate.
Statewide trends in unemployment rates, interest rates, consumer price index, median
home prices, median wage, etc. continue to be positive economic indicators. At the
national level, recent rate decreases by the Fed to preserve expansion have occurred,
but some economists are citing negative factors such as national and geopolitical issues
that may have an impact on the economy. With Port Townsend’s unique economy
depending on maritime trades, tourism, artisan production, light manufacturing, and
public sector activities, a general slowing in the local economy may affect local
government revenue sources. The 2020 budget is prepared conservatively with
expense and revenue inflation increases of around 2 to 3%. Additionally, the proposed
budgeted expenditures are largely built around previously committed increases and
programs with additions of expenditures focused on one -time items.
Consistent with the City’s strategic plan, the City is reviewing long-term funding
strategies to address deferred needs in street maintenance and repairs, parks and
recreation services, library services, and other infrastructure improvements. Funding for
these services and facilities require many strategies. One such long-term strategy
being discussed is the additional property tax revenue capacity through annexation of
the City’s fire service to the East Jefferson Fire Rescue service district. The annexation
ballot measure was approved in the City and the Fire District in February 2019, with
governance taking effect in March 2019 and the first levy impact effective in 2020. The
city and fire district agreed that the city would limit its authority to raise its pre-existing
general levy fire allocated property taxes for a four-year term starting in 2020. This
“banked” taxing authority may be phased in over a three-year period starting in 2021
with limitations on how funds will be earmarked. Eligible uses considered are street
maintenance, parks & recreation, affordable housing initiatives, and utility tax relief.
The city looks forward to pursuing its strategic objectives and accomplishing several
new operational tasks in 2020 including the following:
• Complete contract negotiations with the Port Townsend Paper Corporation to
replace agreement expiring in March 2020
• Continue the City’s role as a facilitator for affordable housing
• Complete the Parks & Recreation Open Space Plan in the first quarter of 2020
• Complete operational analysis of the city golf course and prepare
recommendations
• Identify long-term financing to continue capital project investments
• Recruit new hires for long-term retiring employees
• Negotiate tenant leases at Mountain View following space upgrades for the non-
profit tenants
2020 Budget Section 1 (Updated 11/18/19) - Page 7 of 26
2020 City Manager Budget Message
Page 8 of 26
2020 promises to be a busy year with a lot of changes. The City will welcome its
second City Manager, John Mauro in late 2019. Mr. Mauro will be charged with working
with the City Council to prioritize the strategic plan initiatives into actionable projects to
be completed over the 2020-2022 plan cycle. We are looking forward to the
opportunities to implement these priorities beginning in 2020. The remainder of this
document breaks out the proposed budget into operational and capital categories with
key highlights in each section.
2020 Budget Section 1 (Updated 11/18/19) - Page 8 of 26
2020 City Manager Budget Message
Page 9 of 26
The budget is adopted at the fund level. The chart below (which represents
Exhibit A to the budget ordinance) provides an overview of the revenues,
expenditures and projected ending fund balances:
2019 2020 2020 2020 2020
Ending Fund
Balance
Proposed
Revenues
Propsed
Expenses
Proposed
Rev vs. Exp
Projected
Ending Fund
Balance
GENERAL FUND 1,651,375 10,414,829 10,413,656 1,173 1,652,548
Drug Enforc. / Contingency 185,689 3,000 - 3,000 188,689
Street 231,356 957,247 957,247 - 231,356
Library 240,907 1,127,000 1,146,266 (19,266) 221,641
Real Estate Excise Tax 447,511 516,000 550,000 (34,000) 413,511
Lodging Tax 237,788 543,500 563,624 (20,124) 217,664
Fire / EMS 4,793 15,210 20,000 (4,790) 3
Affordable Housing 21,534 80,008 74,658 5,350 26,884
Community Development Block Grant 181,329 13,020 13,000 20 181,349
Community Services 102,003 2,219,486 2,219,486 0 102,003
TOTAL SPECIAL REV FUNDS 1,652,910 5,474,471 5,544,281 (69,810) 1,583,099
DEBT SERVICE FUND 94,260 1,710,400 1,712,551 (2,151) 92,109
General Capital 46,256 51,086 51,086 - 46,256
Street Capital 173,056 2,568,792 2,577,692 (8,900) 164,156
CAPITAL PROJECTS FUNDS 219,312 2,619,878 2,628,778 (8,900) 210,412
Golf Course 12,249 8,650 15,714 (7,064) 5,185
System Development 824,902 322,500 535,000 (212,500) 612,402
Water / Sewer Operations 2,184,042 8,071,596 7,972,710 98,886 2,282,928
Water / Sewer Capital 2,858,635 2,521,855 2,121,003 400,852 3,259,487
Storm Operations 140,858 1,122,988 1,008,942 114,046 254,904
Storm Capital 14,219 710,350 710,000 350 14,569
ENTERPRISE FUNDS 6,034,904 12,757,939 12,363,369 394,570 6,429,474
Public Works Admin 22,997 598,425 598,134 291 23,288
IT Equipment O&M / Replacement 3,162 446,890 450,052 (3,162) 1
Fleet Equipment O&M / Replacement 1,659,429 815,377 906,064 (90,687) 1,568,742
Engineering Services 52,289 826,200 819,403 6,797 59,086
Unemployment Self-Insurance 25,509 10,400 10,000 400 25,909
INTERNAL SERVICE FUNDS 1,763,386 2,697,292 2,783,653 (86,361) 1,677,025
Firemen's Pension 258,809 38,235 29,027 9,208 268,017
Custodial / Refundable Deposits 235,339 - - - 235,339
Memorial Fund 2,549 - - - 2,549
FIDUCIARY FUNDS 496,697 38,235 29,027 9,208 505,905
GRAND TOTAL $11,912,845 $35,713,044 $35,475,314 $237,730 $12,150,574
CITY OF PORT TOWNSEND
2020 PROPOSED BUDGET FUND SUMMARY
2020 Budget Section 1 (Updated 11/18/19) - Page 9 of 26
2020 City Manager Budget Message
Page 10 of 26
2020 BUDGET ASSUMPTIONS
KEY REVENUE ASSUMPTIONS
The City’s Property Tax Levy for 2020 is proposed at $2,614,000, which includes the
allowable statutory increase of 1.0% plus an adjustment for the value of new
construction and refunds. The 1% statutory increase is budgeted at $34,370 for 2020.
The new construction for the City is estimated at $19,886,000. Property values in the
City grew in the aggregate by 13.1% or approximately $250,000,000. The General Levy
totals $2,398,000 but is reduce by $908,000 consistent with the policy framework that
the City Council adopted in December 2018. The resulting General Levy of $1,490,000
is allocated to Public Safety & General Services, Community Services (Parks, Trails,
Facilities), Affordable Housing initiatives, Debt Service and Fireman’s Pension. The
Library Lid Lift component of the levy is budgeted at $1,124,000 and is available to be
used for library operations.
An excess property tax assessment of approximately $150,000 related to the Mountain
View Commons voted tax assessment will be levied to fund 50% of the annual debt
service for this voted bond.
Below is a chart showing the distribution of property taxes:
2020 Budget Section 1 (Updated 11/18/19) - Page 10 of 26
2020 City Manager Budget Message
Page 11 of 26
Retail Sales Taxes in 2019 are projected to come in at 3.6% below 2018 and at the
adopted budget. Construction activity can skew “normal” revenue from retail sales,
business and occupation taxes, permitting fees and special purpose sales taxes trends,
so this revenue source is closely monitored to differentiate between improved economic
trends as compared to “one-time” revenues related to construction activity. Retail sales
in most categories remains strong but construction related activity in 2019 appears to
have slowed compared to 2018.
An internal analysis of sales tax data indicates that the decrease in 2019 is due to a
40.6% decline in construction revenues, however, it is mostly offset by strong increases
in accommodations and retail trade, which have increased by 5.1% and 10.6%,
respectively.
The Market Place Fairness Act went into effect on January 1, 2018 (EHB 2163). This
act imposes retail sales tax on remote sellers in Washington State. While the State
indicates that local governments are seeing some positive results, a task force is
meeting regularly to provide guidance to local governments on the best ways to monitor
it. The revenue related to this Act is included in the City’s total retail sales and is not
reported separately by the State.
How does this translate to Port Townsend? In 2020, the City’s budget anticipates the
slowing of commercial and public sector construction to continue. With ongoing total
sales tax activity in the City projected to grow at 2.7%.
Below is a chart demonstrating the upward trend of retail sales taxes showing the
forecasted 2020 revenue, which reflects a 10.6% growth since 2016.
2020 Budget Section 1 (Updated 11/18/19) - Page 11 of 26
2020 City Manager Budget Message
Page 12 of 26
Reviewing the trend by industry specific to Port Townsend shows how other industries
such as retail trade and accommodation/food industries demonstrate steady growth,
while construction is more erratic, further validating conservative forecasting for this
component of revenue. See below for reference:
Lodging Taxes are projected at $540,000 for 2020, which is 1.8% lower than the 2019
adopted budget of $550,000. The 2020 forecast is slightly lower than the 2019
projection. Expenditures are restricted to marketing and tourism related infrastructure.
The chart below depicts continued positive trend in tourism related taxes since 2016
here in Port Townsend:
2020 Budget Section 1 (Updated 11/18/19) - Page 12 of 26
2020 City Manager Budget Message
Page 13 of 26
Business & Occupation Taxes are projected at $861,000 for 2020, which is 4.3%
lower than 2019 adopted budget. In 2018 the City implemented a new license and tax
structure. 2019 reflected the first full year of the new tax structure, with actual estimated
tax revenue for 2019 at $840,000. The budget for 2020 projects a 2.5% increase over
2019 estimated actuals.
Real Estate Excise Taxes (REET) year to date collections in 2019 show strong results
in real estate transactions, trending slightly behind 2018 collections. The 2019 REET
revenues are projected to be $570,000 or 11.8% more than adopted budget. 2020
REET revenues are budgeted at $510,000. It is difficult to forecast when large
commercial properties or large dollar home sales will occur, which can
disproportionately distort this revenue source. These funds are restricted to capital
improvements or debt service, which reduces the City’s reliance on general fund dollars
to make up city matching project funds.
Below is a chart showing the trend in Business & Occupation and REET Taxes. REET
revenue is much more volatile and dependent on real estate sales versus the consistent
trend in Business & Occupation Taxes:
Utility Tax revenues in the proposed 2020 budget are based on a 22% gross receipt
public utility tax for all city water, sewer, storm water and garbage services. Two
percent of this tax was slated to revert to 20% at the end of 2018, however, City Council
renewed the tax for an additional five years (See Ordinance 3203). The additional 2%
currently supports two Community Services maintenance workers to serve Parks and
the Mountain View facility. Total public utility tax forecasted for 2020 is $1,781,089 and
is split amount General Services (45%), Public Safety (7%), Streets (39%) and
Community Services (9%).
2020 Budget Section 1 (Updated 11/18/19) - Page 13 of 26
2020 City Manager Budget Message
Page 14 of 26
Private utility tax rates are 6% of the private utility revenue. Telephone and electric
private utility taxes are estimated to be $836,000. The electric utility tax is projected to
increase by 4.4%, but telephone utility taxes have been trending downward over the last
few years and a 23.5% decrease is anticipated in telephone related taxes.
State Shared Revenues are based on distributions that are shared via state revenue
assessments. The City receives distributions for liquor profits and tax, criminal justice
and marijuana tax distributions, fuel and multi-modal gas taxes, which primarily support
public safety and streets. Some of these distributions are population based with the
City’s population for 2019 listed by the Office of Financial Management as 9,610 (an
increase from 2018’s population of 9,545). 2019 projected state shared revenue is
$373,362, which is slightly more than 2019 projections of $367,861 despite a higher
population.
Overhead Cost Recovery is projected to increase by approximately $138,808, or 9.7%
in 2020. This increase is the result of several factors that are inputs in the City’s
adopted overhead cost recovery model. The allocation model looks back two years to
recover overhead costs occurring in 2018 in 2020. The increased revenue in 2020 is
primarily the result of allocating more overhead to the Water Sewer Fund and the Storm
Fund due to increased debt service costs and council bills in those funds.
Utility Revenues (Water, Sewer and Stormwater) are budgeted at the adopted rate
increase per Ordinance 3199 and 3236. In 2017, the City underwent a water and sewer
rate study, contracting with FCS Consulting Group, to analyze whether our utility rates
fully supported capital infrastructure and operations of water and sewer. The results of
the rate study recommended increases in both surcharge s and usage fees. These
revised rates were adopted in May 2018 and took effect January 1, 2019.
Water and sewer operating and maintenance rates are scheduled to increase 3.0%.
For 2020, the surcharge for water and sewer will not increase from 2019, with the rates
for water remaining at $20 per account per month and sewer rates at $8.00 per account
per month. The revenue calculations for 2020 also include an increase of 1% for new
accounts added to the utility. These assumptions are consistent with the rate model that
has been prepared by FCS Consulting Group.
The City engaged FCS Consulting Group to perform a stormwater rate study. The
results of this study were shared with City Council February 2019. In April 2019, the
Council adopted an increase to the stormwater surcharge of $3 per month per account
effective July 2019, bringing the total surcharge rate for stormwater to $6 per account
per month. In October 2019, the City Council approved a rate increase to the
stormwater month rate of 10.1%. The monthly base rates for stormwater fees have not
been changed since 2007. The budget for 2020 includes this anticipated base rate
increase and a 1% account growth.
2020 Budget Section 1 (Updated 11/18/19) - Page 14 of 26
2020 City Manager Budget Message
Page 15 of 26
In 2020, the City is projected to have a total of 5,028 water/sewer accounts with 459, or
9.1%, of those projected to be commercial accounts. Below is a chart demonstrating the
growth in commercial and residential water/sewer accounts from 201 6 through
projected 2020:
Total water / sewer / storm revenue is forecasted to be $9,194,584 as compared to
$8,915,094 in 2019, or a 3.1% increase. As noted earlier, this represents scheduled rate
increases and 1% account growth.
Total Revenues:
Total Budgeted 2020 revenue is projected at $35,713,044, comprised of capital funding
of $7,000,783, fiduciary fund revenue of $38,235, and operating revenue of
$28,674,026.
Several operating funds such as the Library Fund, REET, Lodging Tax, Golf Course,
and Equipment Rental Funds are intentionally projected to draw on cash reserves
where current year revenues are not expected to cover current year expenditures. All
are projected to meet our fund balance reserve policies in 2020.
2020 Budget Section 1 (Updated 11/18/19) - Page 15 of 26
2020 City Manager Budget Message
Page 16 of 26
Capital Revenues provide substantial funding for general government, street and utility
projects through state and federal grants, public works trust fund loans, and drinking
water state revolving fund proceeds. A smaller amount of capital funding may be
administered with inter-fund loans, transfers, bank lines of credit or other debt financing.
Additional details regarding capital projects are provided later in this document.
KEY EXPENDITURE ASSUMPTIONS
Labor
Personnel Wages & Benefits represent a significant portion of the City’s operating
expenses at $11,011,018 or 38.5% of proposed operating costs, $28,632,103. If you
remove internal transfers and debt service from operating costs, staffing is 51.4% of the
total. The City continues to balance the need to retain qualified, capable staff by
providing fair and competitive wages while also maintaining appropriate service levels.
2020 will present both challenges and opportunities with our City Manager transition
and as other long-term employees with a wealth of institutional knowledge retire.
2020 Budget Section 1 (Updated 11/18/19) - Page 16 of 26
2020 City Manager Budget Message
Page 17 of 26
Total budgeted positions in 2020 are 107.23. The positions are outlined by position in
the chart below:
Employee groups include three sectors, the Police Collective Bargaining Unit,
General Collective Bargaining Unit, and non-represented personnel.
The Police Collective Bargaining Unit contract was finalized in early 2018. Adjustments
were made to base rates in 2018 and wages were also contracted to increase 2.0% per
year effective at the time of the contract signing through December 31, 2020.
Assuming no vacancies in 2020, we budgeted 14.0 full time officers and 0.79 part-time
reserve officers. Recruiting and retaining officers continues to be a challenge. Three
new police officers were hired in October 2019 and will attend the police academy in
2020. These officers will not be available for routine duty until fully trained, towards the
latter part of 2020 or the first quarter of 2021.
The General Collective Bargaining Unit expired December 31, 2018 and negotiation of a
new three-year agreement completed in early January 2019. The City had budgeted
wage increase rates of 2.0% in the 2019 adopted budget. The executed agreement
provides these members a wage increase of 4.0% in 2019, 3.0% in 2020 and 2.0% in
2021. The contract was approved by union membership and the City Council
authorized the contract in January 2019, with an effective date of January 1, 2019.
2020 Budget Section 1 (Updated 11/18/19) - Page 17 of 26
2020 City Manager Budget Message
Page 18 of 26
The City budgeted a 3.0% increase, in line with the general government negotiated
wage agreement, for non-represented staff. The non- represented employees include
library, part-time pool, confidential administrative, legal and leadership positions which
total 38.53 positions in the 2020 budget. A full list of authorized positions along with the
position classification salary schedule approved by council in 20 20 is included in the
Staffing and Compensation section of the Budget Book.
Benefits offered to employees include medical, dental, vision, long-term disability, life
insurance and retirement. Medical costs for 2020 are forecast to increase by
approximately 2.0% for the AWC benefit plan (general government non-represented
employees), less the 2.0% well-city discount. To achieve the discount, AWC employees
participate in a variety of wellness activities that promote a healthy life style.
The Teamsters’ benefit plan which covers both the Police and General Government
union employees is budgeted to increase 2.0% in 2020. Retirement contributions for
most employees (PERS) are funded at 12.86% of eligible employee wages. Police
officers are covered by the LEOFF retirement system at a rate of 5.33% of eligible
employee wages. This participation rate is mandated by the Washington State
Retirement System. Employees also have the choice of enrolling in either the ICMA or
Washington State deferred compensation program which is not employer funded.
The 2020 budget includes Seasonal Staff for Streets/Sewer/Wastewater Collection
for 2 employees and an additional 2 seasonal employees for Parks maintenance.
Seasonal staff are hired to work between May and October and are equivalent to 1.38
full time employees in the calendar year. In 2019, we were able to recruit enough
seasonal employees at $15.00 per hour, so in 2020 we have budgeted these non-
benefited employees at $16.00 hour.
Washington State minimum wage increases in 2020 to $13.50 per hour, which is a
$1.50 per hour, or 12.5%, increase. This increase impacts pool and seasonal wage
rates. Additionally, the increase begins to impact higher level position through wage
compression. Wage compression occurs when pay adjustments regardless of
experience, skills or seniority increase the base wage and bring those wages closer to
the wages of more senior, experienced, skilled positions. Human Resource will
continue to monitor the impact of minimum wage adjustments on all City positions.
Non-Labor
Operating non-labor expenditures are largely expected to maintain the status quo
for 2020. Below is a list of budget expense highlights as compared to the 2019 adopted
budget:
New Items Proposed for Funding in 2020 Budget:
• General Fund – $10,000 Sexual Assault Nurse Examiner (SANE) support –
Jefferson Healthcare
• General Fund – $70,000 Police Vehicle – purchase 1 new full outfitted SUV
2020 Budget Section 1 (Updated 11/18/19) - Page 18 of 26
2020 City Manager Budget Message
Page 19 of 26
• Streets Fund – $50,000 increase in other improvements related to pavement
management
• Streets Fund - $13,000 increase in utility costs for additional street lights;
includes payment to the PUD for street light installation on water street
• Streets Fund - $5,000 for street sweeping waste disposal
• Streets Fund - $6,000 signage replacement and new signage
• Library Fund - $20,000 increase for consulting services for strategic plan
development
• Lodging Tax Fund - $50,000 contingent expense for downtown tree well lighting
• Community Services Fund - $30,450 interfund loan repayment to OGWS fund for
PROS plan (payment 1 of 3)
• Community Services Fund - $12,400 increase in boiler repair parts and
maintenance at Mountainview
• Water/Sewer Utilities – $70,100 golf course well pump
• Water/Sewer Utilities – $15,000 to replace Laboratory Equipment
• Water/Sewer Utilities - $26,000 City Lake loan payments for property purchased
in 2019 (Francis property)
• Water/Sewer Utilities - $15,000 CDL Licenses for 3 staff
• Water/Sewer Utilities - $12,622 Scada System Component & Web port
replacement
• Water/Sewer Utilities - $27,500 Carbon Air Scrubber
• Water/Sewer Utilities - $41,000 for Non-potable water pump rebuild
• Water/Sewer Utilities - $10,500 Blower equipment rebuilds
• Water/Sewer Utilities – $30,000 for legal counsel - Mill Rate negotiations
• Storm Utilities - $50,000 transfer to Storm Capital for Discovery Road project
• Fleet Internal Service Funds - $13,060 hardware/software upgrade for fuel
system
• Fleet Internal Service Funds - $10,000 CDL license training for 2 staff
• Fleet Internal Service Fund - $60,000 replacement for two water department
vehicles
• Fleet Internal Service Fund - $35,000 for front load dump bucket
• Fleet Internal Service Fund - $240,000 Front Loader Tractor for Waste
Water/Biosolids Departments
2020 Proposed Budget Expense Increases:
• General Fund – $18,000 increase in professional services - $12,000 for dispatch
and $6,000 for jail services
• General Fund - $73,000 increase in liability and property insurance through our
WCIA insurance risk pool
• General Fund - $22,000 increase in district court costs
• Police Training - $7,000 increase for mandated training costs
• REET Fund - $40,000 increase in transfers to the Street CIP fund for Complete
Streets funding
• Affordable Housing Fund - $64,658 debt service payment for Cherry
Street/Homeward Bound project previously funded through Council Reserve
2020 Budget Section 1 (Updated 11/18/19) - Page 19 of 26
2020 City Manager Budget Message
Page 20 of 26
• Fire & EMS Services Fund expense increase of $26,298 is related to increased
property tax revenues that are passed through to East Jefferson Fire Rescue
• Community Services Fund - $4,000 increase in mandated elevator testing
• Community Services Fund - $36,650 increase in equipment maintenance &
repair contributions
• Community Services Fund - $10,000 increase in small tools and minor
equipment for Mountainview
• Debt Service - $12,365 increased cost for general government debt service
• Water/Sewer Utilities – $1,266,773 of utility tax collected by the General Fund,
Streets Fund and Community Services Fund (accounting change)
• Water/Sewer Utilities - $77,000 increase in payments to the General Fund for
overhead allocation
• Water/Sewer Utilities - $23,000 increase in utility services for the water treatment
facility and the wastewater treatment plant
• Water/Sewer Utilities - $61,700 increase in equipment repair, maintenance and
replacement contributions
• Storm Utilities – $81,363 Debt Service payments for CERB Loan
• IT Internal Service Fund - $15,000 increase in communication equipment for
firewall and switch replacements
• IT Internal Service Fund - $7,000 increase in software licenses
2020 Proposed Total Expenditures of $35,475,314 include all operating fund
appropriations in addition to water, sewer, general and street capital funds. Transfers
make up $5,711,760 or 16.1% of total expenditures. Transfers are internal accounting
transactions expended in one fund and recognized as an equivalent revenue in another
fund. Transfers in the chart below include a $1,141,687 operating fund transfer from the
General Fund to support the Community Services Fund, $1,301,900 transfers from
various funds to support the GO Debt Service Payments, $1,167,422 in utility debt
service transfers, $854,923 transfers for utility tax, $110,074 in various General Fund
transfers, and $1,135,754 in capital transfers.
2020 Budget Section 1 (Updated 11/18/19) - Page 20 of 26
2020 City Manager Budget Message
Page 21 of 26
See the chart below for a breakout of Total proposed appropriations in 2020:
2020 Proposed Operating Expenditures are $28,632,103 (not including fiduciary
funds and capital funds, which include General and Street Capital, Engineering
Services, System Development, Water / Sewer Capital, Transmission Line, Utility Debt
Service and Storm Capital Funds).
Operating expenditures are proposed to be $809,751 more than the 2019 adopted
operating expenditures or an increase of 2.9%. Highlights of labor and non-labor
operating expenditures were noted above.
2020 Budget Section 1 (Updated 11/18/19) - Page 21 of 26
2020 City Manager Budget Message
Page 22 of 26
See the breakdown below of proposed 2020 Operating Expenses by Type:
2020 CAPITAL PROJECTS
The proposed 2020 budget has a variety of capital projects that adds both new
infrastructure investment and improves aging infrastructure. A breakdown of planned
projects is listed below and explained in more detail in the Capital Improvement Plan
section of the budget document.
General Government and Street Capital Projects:
• Complete Streets ADA ramps funded by a 2017 TIB grant
• 7th Street design and partial construction funding
• Discovery Road improvements primarily funded by WSDOT grants
Water/Sewer and Stormwater Utility Capital Projects included in the 2020 capital
budget that are currently underway and have secured funding sources:
• Cherry Street 4 plex water line improvements funded with system development
fund reserves and water/sewer operations transfers.
• Water line replacements – funded with capital surcharge fees
• Sewer Outfall project funded with System Development and Department of
Ecology Loans/Grants
2020 Budget Section 1 (Updated 11/18/19) - Page 22 of 26
2020 City Manager Budget Message
Page 23 of 26
• Gaines Street Pump Station corrosion control funded with sewer capital
surcharge fees and system development fund reserves
• Logan Street Storm Pond design funded with storm capital surcha rge fees
• CERB regional stormwater project funded with CERB Loan funds and storm
capital surcharge fees.
2020 COUNCIL AND CITY-WIDE GOALS
The 2019 – 2022 Strategic Plan for the City of Port Townsend was adopted in
January 2019. Both 2019 and 2020 are recognized as transition years, with the
retirement of the former long tenured City Manager in June 2019 and the recruitment
and employment of a new City Manager in late 2019.
The 2019-2022 Strategic Plan focuses on five key areas (not in any priority of one over
the other):
1. Economic Growth
2. Affordable Housing
3. Infrastructure Assets (Streets/Utilities/Parks)
4. City Organization
5. Community Quality of Life
Council and staff also identified many objectives/actions to be implemented that are
associated with these focus areas. The next phase will be to review and prioritize these
objectives into an action plan for implementation in early 2020 and continuing through
2022.
DEFERRED MAINTENANCE AND UNMET NEEDS
During the annual budget retreat, department heads came together to identify
operating and capital improvement priorities. The City Manager considers these
competing community and operating needs against available funding sources and
recommends an annual balanced budget. These requests range from additional
staffing and operating equipment to maintaining and replacing aging infrastructure.
Some of the requested items identified by department heads that the city is not able to
fund in 2020 are included in the table below. If funding does come available, such as
unexpected increases in retail sales tax revenue, then the City Council can refer to this
list to determine if the unmet need can be fulfilled.
2020 Budget Section 1 (Updated 11/18/19) - Page 23 of 26
2020 City Manager Budget Message
Page 24 of 26
Ci
t
y
C
l
e
r
k
S
o
f
t
w
a
r
e
30
,
0
0
0
8,
0
0
0
HI
G
H
U
p
g
r
a
d
e
t
o
L
a
s
e
r
f
i
c
h
e
S
o
f
t
w
a
r
e
-
R
e
c
o
r
d
s
M
a
n
a
g
e
m
e
n
t
Po
l
i
c
e
O
p
e
r
a
t
i
o
n
s
E
q
u
i
p
m
e
n
t
14
0
,
0
0
0
HI
G
H
P
o
l
i
c
e
V
e
h
i
c
l
e
s
(
3
i
n
2
0
1
9
,
2
e
a
c
h
y
e
a
r
a
f
t
e
r
)
@
$
7
0
,
0
0
0
e
a
.
-
1
ne
w
p
o
l
i
c
e
v
e
h
i
c
l
e
i
s
i
n
t
h
e
2
0
2
0
b
u
d
g
e
t
St
r
e
e
t
O
p
e
r
a
t
i
o
n
s
P
r
o
f
e
s
s
i
o
n
a
l
S
e
r
v
i
c
e
s
20
,
0
0
0
5,
0
0
0
HI
G
H
N
o
x
i
o
u
s
W
e
e
d
A
b
a
t
e
m
e
n
t
Fa
c
i
l
i
t
i
e
s
R
e
p
a
i
r
&
M
a
i
n
t
e
n
a
n
c
e
25
0
,
0
0
0
HI
G
H
H
V
A
C
I
m
p
r
o
v
e
m
e
n
t
s
-
L
i
b
r
a
r
y
Fa
c
i
l
i
t
i
e
s
R
e
p
a
i
r
&
M
a
i
n
t
e
n
a
n
c
e
7,
5
0
0
HI
G
H
O
u
t
s
i
d
e
-
n
e
w
r
o
a
d
s
i
d
e
s
i
g
n
.
(
E
s
t
i
m
a
t
e
)
-
M
t
V
i
e
w
Fa
c
i
l
i
t
i
e
s
R
e
p
a
i
r
&
M
a
i
n
t
e
n
a
n
c
e
5,
0
0
0
HI
G
H
P
i
n
k
H
o
u
s
e
-
C
a
r
p
e
t
R
e
p
l
a
c
e
m
e
n
t
Fa
c
i
l
i
t
i
e
s
E
q
u
i
p
m
e
n
t
16
5
,
0
0
0
HI
G
H
L
i
b
r
a
r
y
-
r
e
p
l
a
c
e
e
l
e
v
a
t
o
r
c
a
r
.
E
s
t
i
m
a
t
e
i
s
b
a
s
e
d
o
n
C
i
t
y
H
a
l
l
es
t
i
m
a
t
e
f
r
o
m
T
h
y
s
s
e
n
k
r
u
p
p
(
2
0
1
9
)
.
Fa
c
i
l
i
t
i
e
s
E
q
u
i
p
m
e
n
t
16
5
,
0
0
0
HI
G
H
C
i
t
y
H
a
l
l
(
H
i
s
t
o
r
i
c
)
-
E
l
e
v
a
t
o
r
R
e
p
l
a
c
e
m
e
n
t
-
M
a
y
n
e
e
d
t
o
re
p
l
a
c
e
t
h
e
H
C
H
E
l
e
v
a
t
o
r
i
n
2
0
1
8
w
h
i
c
h
i
s
i
n
l
c
u
d
e
d
i
n
l
i
n
e
o
f
cr
e
d
i
t
f
u
n
d
i
n
g
p
r
o
p
o
s
a
l
Po
l
i
c
e
O
p
e
r
a
t
i
o
n
s
W
a
g
e
s
&
B
e
n
e
f
i
t
s
10
4
,
1
4
3
HI
G
H
N
e
w
O
f
f
i
c
e
r
(
1
6
t
h
O
f
f
i
c
e
r
)
Pa
r
k
s
/
T
r
a
i
l
s
W
a
g
e
s
&
B
e
n
e
f
i
t
s
10
0
,
0
0
0
HI
G
H
R
e
s
t
o
r
a
t
i
o
n
o
f
1
.
0
P
a
r
k
s
M
a
i
n
t
e
n
a
n
c
e
F
T
E
En
g
i
n
e
e
r
i
n
g
S
e
r
v
i
c
e
s
E
q
u
i
p
m
e
n
t
/
P
r
o
f
e
s
s
i
o
n
a
l
S
e
r
v
i
c
e
s
30
,
0
0
0
1,
0
0
0
HI
G
H
G
I
S
S
o
f
t
w
a
r
e
U
p
g
r
a
d
e
s
67
2
,
5
0
0
35
8
,
1
4
3
Ci
t
y
C
l
e
r
k
H
a
r
d
w
a
r
e
/
S
o
f
t
w
a
r
e
43
,
0
0
0
5,
7
0
0
ME
D
I
U
M
U
p
g
r
a
d
e
C
h
a
m
b
e
r
s
c
a
m
e
r
a
s
,
h
i
g
h
d
e
f
i
n
i
t
i
o
n
s
t
r
e
a
m
i
n
g
,
ad
d
i
t
i
o
n
a
l
m
o
n
i
t
o
r
f
o
r
p
r
e
s
e
n
t
a
t
i
o
n
s
a
n
d
t
r
a
i
n
i
n
g
s
.
Ci
t
y
C
l
e
r
k
W
a
g
e
s
&
B
e
n
e
f
i
t
s
83
,
8
7
5
ME
D
I
U
M
P
u
b
l
i
c
R
e
c
o
r
d
s
A
d
m
i
n
A
s
s
i
s
t
a
n
t
Fi
n
a
n
c
e
S
o
f
t
w
a
r
e
10
5
,
0
0
0
ME
D
I
U
M
F
i
n
a
n
c
i
a
l
S
o
f
t
w
a
r
e
C
o
n
v
e
r
s
i
o
n
(
c
o
s
t
w
i
l
l
b
e
s
p
l
i
t
w
i
t
h
U
t
i
l
i
t
y
Bi
l
l
i
n
g
)
Hu
m
a
n
R
e
s
o
u
r
c
e
s
P
r
o
f
e
s
s
i
o
n
a
l
S
e
r
v
i
c
e
s
4,
9
7
5
ME
D
I
U
M
E
m
p
l
o
y
e
e
E
n
g
a
g
e
m
e
n
t
S
u
r
v
e
y
Hu
m
a
n
R
e
s
o
u
r
c
e
s
S
o
f
t
w
a
r
e
83
1
ME
D
I
U
M
E
n
c
r
y
p
t
i
o
n
S
o
f
t
w
a
r
e
Pa
r
k
s
/
T
r
a
i
l
s
S
o
f
t
w
a
r
e
6,
0
0
0
3,
6
0
0
ME
D
I
U
M
V
o
l
u
n
t
e
e
r
M
a
n
a
g
e
m
e
n
t
S
o
f
t
w
a
r
e
Hu
m
a
n
R
e
s
o
u
r
c
e
s
T
r
a
i
n
i
n
g
10
,
2
5
0
ME
D
I
U
M
C
i
t
y
W
i
d
e
T
r
a
i
n
i
n
g
&
C
a
r
e
e
r
P
a
t
h
i
n
g
P
r
o
g
r
a
m
Po
l
i
c
e
A
d
m
i
n
i
s
t
r
a
t
i
o
n
S
o
f
t
w
a
r
e
6,
0
6
2
50
0
ME
D
I
U
M
C
h
e
c
k
M
a
t
e
A
s
s
e
t
/
I
n
v
e
n
t
o
r
y
S
o
f
t
w
a
r
e
St
r
e
e
t
O
p
e
r
a
t
i
o
n
s
/
W
W
C
/
S
t
o
r
m
W
a
g
e
s
&
B
e
n
e
f
i
t
s
77
,
1
8
0
ME
D
I
U
M
N
e
w
M
a
i
n
t
e
n
a
n
c
e
W
o
r
k
e
r
Fa
c
i
l
i
t
i
e
s
B
u
i
l
d
i
n
g
I
m
p
r
o
v
e
m
e
n
t
s
10
0
,
0
0
0
ME
D
I
U
M
P
i
n
k
H
o
u
s
e
e
x
t
e
r
i
o
r
r
e
p
a
i
r
s
:
R
o
o
f
R
e
p
l
a
c
e
m
e
n
t
a
n
d
n
e
w
s
i
d
i
n
g
.
Fa
c
i
l
i
t
i
e
s
R
e
p
a
i
r
&
M
a
i
n
t
e
n
a
n
c
e
5,
0
0
0
ME
D
I
U
M
L
i
b
r
a
r
y
-
N
e
w
A
l
a
r
m
L
o
c
k
s
d
o
o
r
h
a
n
d
l
e
s
.
E
s
t
i
m
a
t
e
i
s
b
a
s
e
d
o
n
pr
e
v
i
o
u
s
A
l
a
r
m
L
o
c
k
p
u
r
c
h
a
s
e
s
.
Fa
c
i
l
i
t
i
e
s
R
e
p
a
i
r
&
M
a
i
n
t
e
n
a
n
c
e
3,
0
0
0
ME
D
I
U
M
P
i
n
k
H
o
u
s
e
-
N
e
w
A
l
a
r
m
L
o
c
k
s
d
o
o
r
h
a
n
d
l
e
s
.
E
s
t
i
m
a
t
e
i
s
ba
s
e
d
o
n
p
r
e
v
i
o
u
s
A
l
a
r
m
L
o
c
k
p
u
r
c
h
a
s
e
s
.
Pa
r
k
s
/
T
r
a
i
l
s
E
q
u
i
p
m
e
n
t
10
,
0
0
0
ME
D
I
U
M
K
u
b
o
t
a
U
t
i
l
i
t
y
V
e
h
i
c
l
e
Pa
r
k
s
/
T
r
a
i
l
s
R
e
p
a
i
r
&
M
a
i
n
t
e
n
a
n
c
e
8,
5
0
0
ME
D
I
U
M
R
e
-
r
o
o
f
p
i
c
n
i
c
s
h
e
l
t
e
r
a
t
K
a
h
T
a
i
.
E
s
t
i
m
a
t
e
f
r
o
m
A
l
l
W
e
a
t
h
e
r
Ro
o
f
i
n
g
(
2
0
1
8
)
.
Pa
r
k
s
/
T
r
a
i
l
s
R
e
p
a
i
r
&
M
a
i
n
t
e
n
a
n
c
e
10
,
0
0
0
ME
D
I
U
M
R
e
p
l
a
c
e
b
l
u
f
f
f
e
n
c
e
a
t
C
h
e
t
z
e
m
o
k
a
w
i
t
h
s
o
m
e
t
h
i
n
g
m
o
r
e
pe
r
m
a
n
e
n
t
t
h
a
t
c
u
r
r
e
n
t
t
-
p
o
s
t
a
n
d
w
i
r
e
f
e
n
c
e
.
E
s
t
i
m
a
t
e
Pa
r
k
s
/
T
r
a
i
l
s
R
e
p
a
i
r
&
M
a
i
n
t
e
n
a
n
c
e
11
,
0
0
0
ME
D
I
U
M
R
e
-
r
o
o
f
k
i
t
c
h
e
n
s
h
e
l
t
e
r
a
t
C
h
e
t
z
e
m
o
k
a
.
E
s
t
i
m
a
t
e
i
s
f
r
o
m
Wa
l
l
y
w
o
r
k
s
E
n
t
e
r
p
r
i
s
e
s
,
L
T
D
.
(
2
0
1
7
)
.
Pa
r
k
s
/
T
r
a
i
l
s
R
e
p
a
i
r
&
M
a
i
n
t
e
n
a
n
c
e
??
ME
D
I
U
M
R
e
p
l
a
c
e
r
e
s
t
r
o
o
m
b
u
i
l
d
i
n
g
a
t
C
h
e
t
z
e
m
o
k
a
.
Pa
r
k
s
/
T
r
a
i
l
s
R
e
p
a
i
r
&
M
a
i
n
t
e
n
a
n
c
e
??
ME
D
I
U
M
R
e
p
l
a
c
e
r
e
s
t
r
o
o
m
b
u
i
l
d
i
n
g
a
t
B
o
b
b
y
M
c
G
a
r
r
a
u
g
h
.
Pa
r
k
s
/
T
r
a
i
l
s
R
e
p
a
i
r
&
M
a
i
n
t
e
n
a
n
c
e
??
ME
D
I
U
M
R
e
p
u
r
p
o
s
e
r
e
s
t
r
o
o
m
b
u
i
l
d
i
n
g
a
t
K
a
h
T
a
i
.
Ut
i
l
i
t
y
B
i
l
l
i
n
g
S
o
f
t
w
a
r
e
10
5
,
0
0
0
ME
D
I
U
M
F
i
n
a
n
c
i
a
l
S
o
f
t
w
a
r
e
C
o
n
v
e
r
s
i
o
n
(
c
o
s
t
w
i
l
l
b
e
s
p
l
i
t
w
i
t
h
G
/
F
Fi
n
a
n
c
e
)
41
8
,
3
6
8
1
8
1
,
1
0
5
Ci
t
y
o
f
P
o
r
t
T
o
w
n
s
e
n
d
Un
m
e
t
N
e
e
d
s
-
D
e
f
e
r
r
e
d
&
U
n
f
u
n
d
e
d
I
t
e
m
s
Fu
n
d
/
D
e
p
a
r
t
m
e
n
t
De
s
c
r
i
p
t
i
o
n
o
f
I
t
e
m
O
n
e
T
i
m
e
O
n
g
o
i
n
g
P
r
i
o
r
i
t
y
(H
.
M
.
L
.
)
E
x
p
l
a
n
a
t
i
o
n
2020 Budget Section 1 (Updated 11/18/19) - Page 24 of 26
2020 City Manager Budget Message
Page 25 of 26
Ad
m
i
n
i
s
t
r
a
t
i
o
n
W
a
g
e
s
&
B
e
n
e
f
i
t
s
10
0
,
0
0
0
LO
W
1
.
0
F
T
E
-
C
o
m
m
u
n
i
c
a
t
i
o
n
s
S
p
e
c
i
a
l
i
s
t
Ad
m
i
n
i
s
t
r
a
t
i
o
n
E
q
u
i
p
m
e
n
t
2,
0
0
0
LO
W
R
e
p
l
a
c
e
C
o
n
f
e
r
e
n
c
e
R
o
o
m
C
h
a
i
r
s
Ad
m
i
n
i
s
t
r
a
t
i
o
n
P
r
o
f
e
s
s
i
o
n
a
l
S
e
r
v
i
c
e
s
20
,
0
0
0
LO
W
C
i
t
y
H
a
l
l
S
p
a
c
e
P
l
a
n
n
i
n
g
/
S
e
c
u
r
i
t
y
/
F
u
r
n
i
t
u
r
e
Fin
a
n
c
e
S
o
f
t
w
a
r
e
20
,
0
0
0
2,
0
0
0
LO
W
F
i
x
e
d
A
s
s
e
t
S
o
f
t
w
a
r
e
Po
l
i
c
e
O
p
e
r
a
t
i
o
n
s
E
q
u
i
p
m
e
n
t
12
,
4
3
5
LO
W
P
P
E
E
q
u
i
p
m
e
n
t
-
R
e
s
p
i
r
a
t
o
r
M
a
s
k
s
(
Q
t
y
1
5
)
Po
l
i
c
e
O
p
e
r
a
t
i
o
n
s
E
q
u
i
p
m
e
n
t
13
,
5
0
0
LO
W
P
P
E
E
q
u
i
p
m
e
n
t
-
B
a
l
l
i
s
t
i
c
H
e
l
m
e
t
s
Po
l
i
c
e
O
p
e
r
a
t
i
o
n
s
E
q
u
i
p
m
e
n
t
10
,
8
6
6
LO
W
M
o
b
i
l
e
P
a
r
k
i
n
g
E
n
f
o
r
c
e
m
e
n
t
C
o
m
p
u
t
e
r
(
s
)
Po
l
i
c
e
O
p
e
r
a
t
i
o
n
s
E
q
u
i
p
m
e
n
t
85
,
0
0
0
LO
W
L
i
c
e
n
s
e
P
l
a
t
e
R
e
a
d
i
n
g
S
y
s
t
e
m
St
r
e
e
t
O
p
e
r
a
t
i
o
n
s
P
r
o
f
e
s
s
i
o
n
a
l
S
e
r
v
i
c
e
s
70
,
0
0
0
LO
W
A
D
A
T
r
a
n
s
i
t
i
o
n
P
l
a
n
C
o
n
s
u
l
t
i
n
g
Lib
r
a
r
y
W
a
g
e
s
&
B
e
n
e
f
i
t
s
85
,
0
0
0
LO
W
A
d
u
l
t
S
e
r
v
i
c
e
s
L
i
b
r
a
r
i
a
n
-
F
r
e
e
z
e
Lib
r
a
r
y
W
a
g
e
s
&
B
e
n
e
f
i
t
s
55
,
2
5
0
LO
W
L
i
b
r
a
r
y
A
s
s
o
c
i
a
t
e
-
F
r
e
e
z
e
Fa
c
i
l
i
t
i
e
s
R
e
p
a
i
r
&
M
a
i
n
t
e
n
a
n
c
e
10
,
0
0
0
LO
W
R
e
c
B
u
i
l
d
i
n
g
-
F
o
y
e
r
H
e
a
t
e
r
R
e
p
l
a
c
e
m
e
n
t
-
M
t
V
i
e
w
Fa
c
i
l
i
t
i
e
s
R
e
p
a
i
r
&
M
a
i
n
t
e
n
a
n
c
e
89
,
1
3
7
LO
W
O
u
t
s
i
d
e
-
C
o
u
r
t
y
a
r
d
-
A
D
A
i
m
p
r
o
v
e
m
e
n
t
s
t
o
e
a
s
t
e
n
t
r
a
n
c
e
f
r
o
m
co
u
r
t
y
a
r
d
.
E
s
t
i
m
a
t
e
i
s
f
r
o
m
R
o
l
l
u
d
a
A
r
c
h
i
t
e
c
t
s
(
2
0
1
6
)
.
-
M
t
Vie
w
Fa
c
i
l
i
t
i
e
s
R
e
p
a
i
r
&
M
a
i
n
t
e
n
a
n
c
e
3,
0
0
0
LO
W
C
i
t
y
H
a
l
l
-
r
e
p
l
a
c
e
c
a
r
p
e
t
i
n
3
r
d
f
l
o
o
r
c
o
n
f
e
r
e
n
c
e
r
o
o
m
w
i
t
h
ca
r
p
e
t
s
q
u
a
r
e
s
.
E
s
t
i
m
a
t
e
Fa
c
i
l
i
t
i
e
s
R
e
p
a
i
r
&
M
a
i
n
t
e
n
a
n
c
e
30
,
0
0
0
LO
W
G
o
l
f
C
o
u
r
s
e
-
r
e
p
l
a
c
e
r
o
o
f
i
n
g
.
T
h
i
s
i
s
j
u
s
t
a
p
l
a
c
e
-
h
o
l
d
e
r
,
d
o
n
'
t
kn
o
w
a
g
e
o
f
c
u
r
r
e
n
t
r
o
o
f
.
E
s
t
i
m
a
t
e
Go
l
f
C
o
u
r
s
e
R
e
p
a
i
r
&
M
a
i
n
t
e
n
a
n
c
e
1,
2
0
0
,
0
0
0
LO
W
S
e
e
N
G
F
i
d
e
n
t
i
f
i
e
d
r
e
p
a
i
r
s
a
n
d
c
a
p
i
t
a
l
i
n
v
e
s
t
m
e
n
t
s
Fa
c
i
l
i
t
i
e
s
R
e
p
a
i
r
&
M
a
i
n
t
e
n
a
n
c
e
20
,
0
0
0
LO
W
P
o
p
e
M
a
r
i
n
e
E
x
t
e
r
i
o
r
S
i
d
i
n
g
R
e
p
l
a
c
e
m
e
n
t
Fa
c
i
l
i
t
i
e
s
R
e
p
a
i
r
&
M
a
i
n
t
e
n
a
n
c
e
6,
0
0
0
LO
W
P
l
a
z
a
-
R
e
p
l
a
c
e
e
l
e
c
t
r
i
c
i
t
y
o
u
t
l
e
t
s
Pa
r
k
s
/
T
r
a
i
l
s
R
e
p
a
i
r
&
M
a
i
n
t
e
n
a
n
c
e
5,
0
0
0
LO
W
P
u
g
e
t
S
o
u
n
d
C
r
e
w
-
T
r
a
i
l
M
a
i
n
t
e
n
a
n
c
e
Pa
r
k
s
/
T
r
a
i
l
s
R
e
p
a
i
r
&
M
a
i
n
t
e
n
a
n
c
e
40
,
0
0
0
LO
W
R
e
p
l
a
c
e
f
e
n
c
i
n
g
a
t
S
k
a
t
e
P
a
r
k
.
E
s
t
i
m
a
t
e
Po
o
l
E
q
u
i
p
m
e
n
t
1,
2
0
0
LO
W
P
u
r
c
h
s
e
s
u
i
t
s
p
i
n
n
e
r
f
o
r
l
o
c
k
e
r
r
o
o
m
s
.
E
s
t
i
m
a
t
e
i
s
b
a
s
e
d
o
n
in
t
e
r
n
e
t
s
e
a
r
c
h
e
s
.
Uti
l
i
t
y
B
i
l
l
i
n
g
S
o
f
t
w
a
r
e
20
,
0
0
0
2,
0
0
0
LO
W
F
i
x
e
d
A
s
s
e
t
S
o
f
t
w
a
r
e
(
C
o
s
t
w
i
l
l
b
e
s
p
l
i
t
w
i
t
h
G
/
F
F
i
n
a
n
c
e
)
1,6
5
3
,
1
3
8
24
9
,
2
5
0
Cit
y
o
f
P
o
r
t
T
o
w
n
s
e
n
d
Un
m
e
t
N
e
e
d
s
-
D
e
f
e
r
r
e
d
&
U
n
f
u
n
d
e
d
I
t
e
m
s
Fu
n
d
/
D
e
p
a
r
t
m
e
n
t
De
s
c
r
i
p
t
i
o
n
o
f
I
t
e
m
O
n
e
T
i
m
e
O
n
g
o
i
n
g
P
r
i
o
r
i
t
y
(H
.
M
.
L
.
)
E
x
p
l
a
n
a
t
i
o
n
2020 Budget Section 1 (Updated 11/18/19) - Page 25 of 26
2020 City Manager Budget Message
Page 26 of 26
M
a
y
o
r
&
C
o
u
n
c
i
l
W
a
g
e
s
&
B
e
n
e
f
i
t
s
??
?
?
W
a
g
e
&
B
e
n
e
f
i
t
E
v
a
l
u
a
t
i
o
n
f
o
r
C
i
t
y
C
o
u
n
c
i
l
M
e
m
b
e
r
s
M
o
u
n
t
a
i
n
V
i
e
w
/
P
o
l
i
c
e
R
e
p
a
i
r
&
M
a
i
n
t
e
n
a
n
c
e
25
9
,
6
7
3
?
?
C
l
a
s
s
r
o
o
m
B
u
i
l
d
i
n
g
-
P
o
l
i
c
e
-
R
e
l
o
c
a
t
e
e
v
i
d
e
n
c
e
r
o
o
m
w
/
im
p
r
o
v
e
m
e
n
t
s
.
E
s
t
i
m
a
t
e
i
s
f
r
o
m
R
o
l
l
u
d
a
A
r
c
h
i
t
e
c
t
s
(
2
0
1
7
)
.
M
o
u
n
t
a
i
n
V
i
e
w
/
P
o
l
i
c
e
R
e
p
a
i
r
&
M
a
i
n
t
e
n
a
n
c
e
8
9
,
1
2
7
?
?
C
l
a
s
s
r
o
o
m
B
u
i
l
d
i
n
g
-
P
o
l
i
c
e
-
R
e
l
o
c
a
t
e
g
u
n
c
l
e
a
n
i
n
g
a
n
d
a
r
m
o
r
y
w/
i
m
p
r
o
v
e
m
e
n
t
s
.
E
s
t
i
m
a
t
e
i
s
f
r
o
m
R
o
l
l
u
d
a
A
r
c
h
i
t
e
c
t
s
(
2
0
1
7
)
.
M
o
u
n
t
a
i
n
V
i
e
w
/
P
o
l
i
c
e
R
e
p
a
i
r
&
M
a
i
n
t
e
n
a
n
c
e
15
1
,
3
0
1
?
?
C
l
a
s
s
r
o
o
m
B
u
i
l
d
i
n
g
-
P
o
l
i
c
e
-
R
e
l
o
c
a
t
e
s
q
u
a
d
r
o
o
m
w
/
im
p
r
o
v
e
m
e
n
t
s
.
E
s
t
i
m
a
t
e
i
s
f
r
o
m
R
o
l
l
u
d
a
A
r
c
h
i
t
e
c
t
s
(
2
0
1
7
)
.
M
o
u
n
t
a
i
n
V
i
e
w
/
P
o
l
i
c
e
R
e
p
a
i
r
&
M
a
i
n
t
e
n
a
n
c
e
5
9
,
6
3
9
?
?
C
l
a
s
s
r
o
o
m
B
u
i
l
d
i
n
g
-
P
o
l
i
c
e
-
T
r
a
i
n
i
n
g
a
n
d
f
i
t
n
e
s
s
r
o
o
m
im
p
r
o
v
e
m
e
n
t
s
.
E
s
t
i
m
a
t
e
i
s
f
r
o
m
R
o
l
l
u
d
a
A
r
c
h
i
t
e
c
t
s
(
2
0
1
7
)
.
M
o
u
n
t
a
i
n
V
i
e
w
/
P
o
l
i
c
e
R
e
p
a
i
r
&
M
a
i
n
t
e
n
a
n
c
e
3
6
,
5
1
6
?
?
C
l
a
s
s
r
o
o
m
B
u
i
l
d
i
n
g
-
P
o
l
i
c
e
-
C
h
i
e
f
&
D
e
t
e
c
t
i
v
e
o
f
f
i
c
e
im
p
r
o
v
e
m
e
n
t
s
.
E
s
t
i
m
a
t
e
i
s
f
r
o
m
R
o
l
l
u
d
a
A
r
c
h
i
t
e
c
t
s
(
2
0
1
7
)
.
M
o
u
n
t
a
i
n
V
i
e
w
/
P
o
l
i
c
e
R
e
p
a
i
r
&
M
a
i
n
t
e
n
a
n
c
e
16
1
,
6
9
9
?
?
C
l
a
s
s
r
o
o
m
B
u
i
l
d
i
n
g
-
P
o
l
i
c
e
-
R
e
l
o
c
a
t
e
p
u
b
l
i
c
i
n
t
e
r
f
a
c
e
a
n
d
ad
m
i
n
i
s
t
r
a
t
i
o
n
w
/
i
m
p
r
o
v
e
m
e
n
t
s
.
E
s
t
i
m
a
t
e
i
s
f
r
o
m
R
o
l
l
u
d
a
A
r
c
h
i
t
e
c
t
s
(
2
0
1
6
)
.
M
o
u
n
t
a
i
n
V
i
e
w
/
P
o
l
i
c
e
R
e
p
a
i
r
&
M
a
i
n
t
e
n
a
n
c
e
39
7
,
6
9
2
?
?
O
u
t
s
i
d
e
-
P
o
l
i
c
e
-
p
a
v
i
n
g
/
r
e
-
s
u
r
f
a
c
i
n
g
r
o
a
d
,
i
m
p
r
o
v
i
n
g
p
a
r
k
i
g
l
o
t
,
s
a
l
l
y
p
o
r
t
,
e
t
c
.
E
s
t
i
m
a
t
e
i
s
f
r
o
m
R
o
l
l
u
d
a
A
r
c
h
i
t
e
c
t
s
(
2
0
1
6
)
.
M
o
u
n
t
a
i
n
V
i
e
w
/
P
o
l
i
c
e
R
e
p
a
i
r
&
M
a
i
n
t
e
n
a
n
c
e
20
0
,
0
0
0
?
?
O
u
t
s
i
d
e
-
G
e
n
e
r
a
t
o
r
-
u
p
g
r
a
d
e
g
e
n
e
r
a
t
o
r
t
o
p
r
o
v
i
d
e
g
r
e
a
t
e
r
po
w
e
r
c
a
p
a
c
i
t
y
.
E
s
t
i
m
a
t
e
i
s
f
r
o
m
2
0
1
5
b
o
n
d
i
n
i
t
i
a
t
i
v
e
.
M
o
u
n
t
a
i
n
V
i
e
w
R
e
p
a
i
r
&
M
a
i
n
t
e
n
a
n
c
e
33
1
,
7
5
2
P
e
n
d
i
n
g
Y
M
C
A
D
e
c
i
s
i
o
n
O
u
t
s
i
d
e
-
C
o
u
r
t
y
a
r
d
-
C
o
u
r
t
y
a
r
d
a
n
d
l
a
n
d
s
c
a
p
i
n
g
i
m
p
r
o
v
e
m
e
n
t
s
.
E
s
t
i
m
a
t
e
i
s
f
r
o
m
R
o
l
l
u
d
a
A
r
c
h
i
t
e
c
t
s
(
2
0
1
6
)
.
M
o
u
n
t
a
i
n
V
i
e
w
R
e
p
a
i
r
&
M
a
i
n
t
e
n
a
n
c
e
4
0
,
0
0
0
P
e
n
d
i
n
g
Y
M
C
A
D
e
c
i
s
i
o
n
R
e
c
.
B
u
i
l
d
i
n
g
-
r
e
p
l
a
c
e
r
o
o
f
o
v
e
r
g
y
m
n
a
s
i
u
m
.
E
s
t
i
m
a
t
e
i
s
f
r
o
m
20
1
5
b
o
n
d
i
n
i
t
i
a
t
i
v
e
.
M
o
u
n
t
a
i
n
V
i
e
w
R
e
p
a
i
r
&
M
a
i
n
t
e
n
a
n
c
e
1
0
,
0
0
0
P
e
n
d
i
n
g
Y
M
C
A
D
e
c
i
s
i
o
n
R
e
c
.
B
u
i
l
d
i
n
g
-
r
e
p
a
i
r
c
h
i
m
n
e
y
.
E
s
t
i
m
a
t
e
i
s
f
r
o
m
2
0
1
5
b
o
n
d
in
i
t
i
a
t
i
v
e
.
M
o
u
n
t
a
i
n
V
i
e
w
R
e
p
a
i
r
&
M
a
i
n
t
e
n
a
n
c
e
2
6
,
0
0
0
P
e
n
d
i
n
g
Y
M
C
A
D
e
c
i
s
i
o
n
Y
M
C
A
P
o
r
t
a
b
l
e
-
s
i
d
i
n
g
a
n
d
r
o
o
f
r
e
p
l
a
c
e
m
e
n
t
,
A
D
A
c
o
m
p
l
i
a
n
c
e
is
s
u
e
s
,
e
t
c
.
E
s
t
i
m
a
t
e
i
s
f
r
o
m
2
0
1
5
b
o
n
d
i
n
i
t
i
a
t
i
v
e
.
M
o
u
n
t
a
i
n
V
i
e
w
R
e
p
a
i
r
&
M
a
i
n
t
e
n
a
n
c
e
2
8
,
0
0
0
P
e
n
d
i
n
g
Y
M
C
A
D
e
c
i
s
i
o
n
R
e
c
.
B
u
i
l
d
i
n
g
-
v
a
r
i
o
u
s
i
m
p
r
o
v
e
m
e
n
t
s
t
o
g
y
m
n
a
s
i
u
m
/
c
a
f
e
t
e
r
i
a
bu
i
l
d
i
n
g
.
E
s
t
i
m
a
t
e
i
s
f
r
o
m
2
0
1
5
b
o
n
d
i
n
i
t
i
a
t
i
v
e
.
M
o
u
n
t
a
i
n
V
i
e
w
R
e
p
a
i
r
&
M
a
i
n
t
e
n
a
n
c
e
15
0
,
0
0
0
P
e
n
d
i
n
g
Y
M
C
A
D
e
c
i
s
i
o
n
O
u
t
s
i
d
e
-
P
a
r
k
i
n
g
L
o
t
-
e
x
p
a
n
d
p
a
r
k
i
n
g
l
o
t
c
a
p
a
c
i
t
y
a
n
d
i
m
p
r
o
v
e
in
g
r
e
s
s
/
e
g
r
e
s
s
.
E
s
t
i
m
a
t
e
i
s
f
r
o
m
2
0
1
5
b
o
n
d
i
n
i
t
i
a
t
i
v
e
.
M
o
u
n
t
a
i
n
V
i
e
w
R
e
p
a
i
r
&
M
a
i
n
t
e
n
a
n
c
e
2
0
,
0
0
0
P
e
n
d
i
n
g
Y
M
C
A
D
e
c
i
s
i
o
n
O
u
t
s
i
d
e
-
b
u
i
l
d
d
u
m
p
s
t
e
r
e
n
c
l
o
s
u
r
e
.
E
s
t
i
m
a
t
e
i
s
f
r
o
m
2
0
1
5
bo
n
d
i
n
i
t
i
a
t
i
v
e
.
M
o
u
n
t
a
i
n
V
i
e
w
R
e
p
a
i
r
&
M
a
i
n
t
e
n
a
n
c
e
2
5
,
0
0
0
P
e
n
d
i
n
g
Y
M
C
A
D
e
c
i
s
i
o
n
O
u
t
s
i
d
e
-
r
e
p
a
i
r
s
t
o
c
h
a
i
n
l
i
n
k
f
e
n
c
i
n
g
.
E
s
t
i
m
a
t
e
i
s
f
r
o
m
2
0
1
5
bo
n
d
i
n
i
t
i
a
t
i
v
e
.
P
o
o
l
E
q
u
i
p
m
e
n
t
1
,
5
0
0
P
e
n
d
i
n
g
Y
M
C
A
D
e
c
i
s
i
o
n
D
r
i
n
k
i
n
g
F
o
u
n
t
a
i
n
w
i
t
h
B
o
t
t
l
e
F
i
l
l
e
r
P
o
o
l
E
q
u
i
p
m
e
n
t
1
8
,
0
0
0
P
e
n
d
i
n
g
Y
M
C
A
D
e
c
i
s
i
o
n
C
l
i
m
b
i
n
g
W
a
l
l
P
o
o
l
E
q
u
i
p
m
e
n
t
1
5
,
0
0
0
P
e
n
d
i
n
g
Y
M
C
A
D
e
c
i
s
i
o
n
S
l
i
d
e
P
o
o
l
E
q
u
i
p
m
e
n
t
1
0
,
0
0
0
P
e
n
d
i
n
g
Y
M
C
A
D
e
c
i
s
i
o
n
W
i
b
i
t
i
n
f
l
a
t
a
b
l
e
/
f
l
o
a
t
i
n
g
p
l
a
y
g
r
o
u
n
d
P
o
o
l
E
q
u
i
p
m
e
n
t
4
,
0
0
0
P
e
n
d
i
n
g
Y
M
C
A
D
e
c
i
s
i
o
n
R
e
p
l
a
c
e
s
o
u
n
d
-
d
e
a
d
e
n
i
n
g
p
a
n
e
l
s
i
n
p
a
n
e
l
s
i
n
n
a
t
a
t
o
r
i
u
m
.
E
s
t
i
m
a
t
e
i
s
b
a
s
e
d
o
n
c
o
s
t
o
f
p
a
n
e
l
s
f
r
o
m
H
o
m
e
D
e
p
o
t
(
2
0
1
7
)
.
P
o
o
l
E
q
u
i
p
m
e
n
t
8
,
0
0
0
P
e
n
d
i
n
g
Y
M
C
A
D
e
c
i
s
i
o
n
R
e
p
l
a
c
e
d
i
v
i
n
g
b
l
o
c
k
s
.
E
s
t
i
m
a
t
e
P
o
o
l
R
e
p
a
i
r
&
M
a
i
n
t
e
n
a
n
c
e
1
0
,
0
0
0
P
e
n
d
i
n
g
Y
M
C
A
D
e
c
i
s
i
o
n
P
a
i
n
t
n
a
t
a
t
o
r
i
u
m
c
e
i
l
i
n
g
.
E
s
t
i
m
a
t
e
P
o
o
l
R
e
p
a
i
r
&
M
a
i
n
t
e
n
a
n
c
e
3
5
,
0
0
0
P
e
n
d
i
n
g
Y
M
C
A
D
e
c
i
s
i
o
n
P
u
m
p
r
o
o
m
w
a
t
e
r
l
i
n
e
a
n
d
v
e
n
t
i
l
a
t
i
o
n
i
m
p
r
o
v
e
m
e
n
t
s
.
E
s
t
i
m
a
t
e
is
f
r
o
m
2
0
1
5
b
o
n
d
i
n
i
t
i
a
t
i
v
e
.
P
o
o
l
R
e
p
a
i
r
&
M
a
i
n
t
e
n
a
n
c
e
5
,
0
0
0
P
e
n
d
i
n
g
Y
M
C
A
D
e
c
i
s
i
o
n
R
e
p
l
a
c
e
s
l
i
d
i
n
g
d
o
o
r
.
E
s
t
i
m
a
t
e
P
o
o
l
R
e
p
a
i
r
&
M
a
i
n
t
e
n
a
n
c
e
4
0
,
0
0
0
P
e
n
d
i
n
g
Y
M
C
A
D
e
c
i
s
i
o
n
R
e
p
l
a
c
e
m
e
m
b
r
a
n
e
r
o
o
f
o
v
e
r
p
o
o
l
.
E
s
t
i
m
a
t
e
P
o
o
l
R
e
p
a
i
r
&
M
a
i
n
t
e
n
a
n
c
e
9
,
0
0
0
P
e
n
d
i
n
g
Y
M
C
A
D
e
c
i
s
i
o
n
P
o
l
i
s
h
a
n
d
s
e
a
l
c
o
n
c
r
e
t
e
f
l
o
o
r
s
i
n
l
o
c
k
e
r
r
o
o
m
s
.
E
s
t
i
m
a
t
e
i
s
fr
o
m
D
u
r
a
s
h
i
n
e
(
2
0
1
8
)
.
2
,
1
4
1
,
8
9
9
-
T
o
t
a
l
4
,
8
8
5
,
9
0
5
7
8
8
,
4
9
8
C
i
t
y
o
f
P
o
r
t
T
o
w
n
s
e
n
d
U
n
m
e
t
N
e
e
d
s
-
D
e
f
e
r
r
e
d
&
U
n
f
u
n
d
e
d
I
t
e
m
s
F
u
n
d
/
D
e
p
a
r
t
m
e
n
t
D
e
s
c
r
i
p
t
i
o
n
o
f
I
t
e
m
O
n
e
T
i
m
e
O
n
g
o
i
n
g
P
r
i
o
r
i
t
y
(H
.
M
.
L
.
)
E
x
p
l
a
n
a
t
i
o
n
2020 Budget Section 1 (Updated 11/18/19) - Page 26 of 26
Ordinance 3237
ORDINANCE NO. 3237
AN ORDINANCE OF THE CITY OF PORT TOWNSEND, WASHINGTON, ADOPTING
2019 SUPPLEMENTAL #2 BUDGET APPROPRIATIONS
WHEREAS, the City Council adopted an additional supplemental budget per Ordinance
3226 on May 13, 2019 and was set forth in the document entitled “City of Port Townsend Budget
2019 Supplemental Fund Summary”; and
WHEREAS, the City Manager of the City of Port Townsend, Washington completed and
filed an additional proposed supplemental budget for 2019 on November 4, 2019; and
WHEREAS, the City Council reviewed the second supplemental budget and held a
public hearing on November 4, 2019 and considered the matter further on November 18, 2019;
NOW, THEREFORE, the City Council of the City of Port Townsend, Washington, do
ordain as follows:
Section 1. The second supplemental budget for the City of Port Townsend, Washington,
for the fiscal year 2019, is adopted as set forth in the document entitled “City of Port Townsend
Budget 2019 Supplemental #2 Fund Summary”, a copy of which is on file with the office of the
City Clerk, and is incorporated into this Ordinance. The budget supplemental #2 summary is
attached as Exhibit A, making revenue and expenditure revisions.
Section 2. This Ordinance shall take effect upon its passage, approval, and publication
in the form and manner provided by law.
ADOPTED by the City Council of the City of Port Townsend, Washington, by a vote of
the majority of the City Council plus one, at a special business meeting thereof, held this 18th
day of November 2019.
___________________________________
Deborah S. Stinson
Mayor
Attest: Approved as to legal form:
_____________________________ __________________________________
Joanna Sanders, MMC Heidi Greenwood
City Clerk City Attorney
2020 Budget Section 2 (Updated 11/18/19) - Page 1 of 8
2020 Budget Section 2 (Updated 11/18/19) - Page 2 of 8
2018 2019 2019 2019 2019 2019 2019 2019 2019
Ending Fund
Balance
Adopted
Revenues
Amended
Revenues
Adopted
Expenses
Amended
Expenses
Adopted Rev
vs. Exp
Amended Rev
vs. Exp
Proposed
Supplemental
Appropriation
Projected
Ending Fund
Balance
GENERAL FUND 1,904,790 9,101,543 10,033,042 9,097,115 10,286,457 4,428 (253,415) 1,189,342 1,651,375
Drug Enforc. / Contingency 182,489 1,200 3,200 - - 1,200 3,200 185,689
Street 260,855 870,803 866,141 930,573 895,640 (59,770) (29,499) 231,356
Library 214,522 1,097,144 1,153,456 1,161,673 1,127,071 (64,529) 26,385 240,907
Real Estate Excise Tax 380,284 512,200 577,227 510,000 510,000 2,200 67,227 447,511
Lodging Tax 246,908 550,750 564,416 572,908 573,536 (22,158) (9,120) 628 237,788
Fire / EMS 4,622 2,412,574 2,415,171 2,411,574 2,415,000 1,000 171 3,426 4,793
Affordable Housing 21,080 10,100 10,454 10,000 10,000 100 454 21,534
Community Development Block Grant 176,617 14,424 19,712 15,000 15,000 (576) 4,712 181,329
Community Services 101,006 2,016,792 2,242,630 2,010,775 2,241,633 6,017 997 230,858 102,003
TOTAL SPECIAL REV FUNDS 1,588,383 7,485,987 7,852,407 7,622,503 7,787,880 (136,516) 64,527 234,912 1,652,910
DEBT SERVICE FUND 89,905 1,698,035 1,694,210 1,686,855 1,689,855 11,180 4,355 3,000 94,260
General Capital 1,589,739 518,581 599,600 2,077,681 2,143,083 (1,559,100) (1,543,483) 65,402 46,256
Street Capital 262,333 2,391,829 1,754,155 2,526,744 1,843,432 (134,915) (89,277) 173,056
CAPITAL PROJECTS FUNDS 1,852,072 2,910,410 2,353,755 4,604,425 3,986,515 (1,694,015) (1,632,760) 65,402 219,312
Golf Course 27,728 10,250 8,750 18,229 24,229 (7,979) (15,479) 6,000 12,249
System Development 912,674 338,452 317,228 600,000 405,000 (261,548) (87,772) 824,902
Water / Sewer Operations 2,160,229 6,957,366 7,954,473 7,059,994 7,930,660 (102,628) 23,813 870,666 2,184,042
Water / Sewer Capital 1,596,785 3,100,454 2,567,818 2,756,170 1,994,821 344,284 572,997 2,169,782
Transmisison Line Fund 719,177 62,000 253,136 65,045 283,461 (3,045) (30,325) 218,416 688,852
Storm Operations 166,387 747,859 960,621 781,074 986,150 (33,215) (25,529) 205,076 140,858
Storm Capital 1,775 1,090,000 530,614 1,078,000 518,170 12,000 12,444 14,219
ENTERPRISE FUNDS 5,584,755 12,306,381 12,592,640 12,358,512 12,142,491 (52,131) 450,149 1,300,158 6,034,904
Public Works Admin 28,847 611,802 501,171 594,272 507,021 17,530 (5,850) 22,997
IT Equipment O&M - 358,979 359,040 355,878 355,878 3,101 3,162 3,162
IT Equipment Replacement - 56,617 56,617 57,000 56,617 (383) - -
Fleet Equipment O&M - 528,410 529,376 529,432 484,860 (1,022) 44,516 44,516
Fleet Equipment Replacement 1,499,762 204,951 245,151 - 130,000 204,951 115,151 130,000 1,614,913
Engineering Services 159,548 894,000 809,207 982,310 916,466 (88,310) (107,259) 52,289
Unemployment Self-Insurance 25,078 20,180 1,931 20,000 1,500 180 431 25,509
INTERNAL SERVICE FUNDS 1,713,235 2,674,939 2,502,493 2,538,892 2,452,342 136,047 50,151 130,000 1,763,386
Firemen's Pension 246,382 35,735 38,606 17,551 26,179 18,184 12,427 8,628 258,809
Custodial / Refundable Deposits 233,935 - 1,404 - - - 1,404 235,339
Memorial Fund 2,549 - - - - - - 2,549
FIDUCIARY FUNDS 482,866 35,735 40,010 17,551 26,179 18,184 13,831 8,628 496,697
GRAND TOTAL $13,216,007 $36,213,030 $37,068,557 $37,925,853 $38,371,719 ($1,712,823)($1,303,162)2,931,442 $11,912,845
CITY OF PORT TOWNSEND
2019 SUPPLEMENTAL BUDGET FUND SUMMARY
Ordinance 3237 Exhibit A
2020 Budget Section 2 (Updated 11/18/19) - Page 3 of 8
2020 Budget Section 2 (Updated 11/18/19) - Page 4 of 8
City of Port Townsend
Updated on 11/12/19
Description Fund Department Ongoing vs one-time
2019 Expense
Increase/
(Decrease) Explanation
Utility Tax - Transfer Out General Fund General ongoing 192,596 Transfer of Garbage Utility Tax to Comm. Svs. Fund and Street Fund. (Accounting Change)
Utility Tax - Transfer Out General Fund General ongoing 588,955 Transfer of W/S/S Utility Tax to Comm. Svs. Fund and Street Fund. (Accounting Change)
Property Tax - Transfer Out General Fund General ongoing 34,235 Transfer of Property Tax collections for Fireman's Pension Fund. (Accounting Change)
Voter Election Costs General Fund City Council one-time 9,350 Additional Voter Election Costs allocated by Jefferson County
Fleet Purchases General Fund Police one-time 160,000 Police Vehicles - Fully Outfitted SUVs
Fleet Purchases General Fund Police one-time 5,000 Police Vehicle - Used Ford Escape - Detective Car
Body Cameras General Fund Police one-time 23,200
Portable Audio / Visual Recording Systems (Body Cameras) - Approved by council in lieu of COBAN units
inside police vehicles
Relocation Expenditures General Fund Admininstration one-time 10,000 New City Manager moving expenses (amount above budget approriation)
District Court Costs General Fund City Attorney ongoing 30,375 Additional District Court Costs allocation by Jefferson County
Administration Office Imrovements General Fund Admininstration one-time 12,300 Improvements to City Administrative Offices
Contracted Services General Fund City Manager one-time 18,000 Contract for six months of consulting by former City Manager - Approved by City Council
Community Services General Fund General one-time 106,000 Transfer to fund community services - parks, facilities, pool & MV
MCS Consulting - Navigator Contract General Fund Police ongoing 45,277 Funding to increase Navigator services to provide 40 hours per week of navigator service
Salary and Wages General Fund All Depts ongoing 76,022 Wage Adjustments - 2% budget vs. 4% approved for wage increase in 2019
General Expense Savings from Budget General Fund General one-time (121,968)
Various other savings in general fund expense line items (partially offset wage adjustments budgeted as
$159,488 to cover General Fund & Community Services increases in negotiated rate increases)
1,189,342
Contracted Serivces Lodging Tax Fund Tourism ongoing 628 Adjustment for Big Belly Solid Waste Expenses
628
Pass through Property Tax Payments Fire / EMS one-time 3,426 Estimated payments to EJFR adjusted higher for increased property valuations
3,426 Total Fire / EMS Fund Supplemental Appropriatons
Total Lodging Tax Fund Supplemental Appropriatons
2019 Supplemental Budget Amendment #2
General Fund - Supplemental Appropriations
Total General Fund Supplemental Appropriatons
Lodging Tax Fund - Supplemental Appropriations
FIRE / EMS Services
1
2020 Budget Section 2 (Updated 11/18/19) - Page 5 of 8
City of Port Townsend
Updated on 11/12/19
Description Fund Department Ongoing vs one-time
2019 Expense
Increase/
(Decrease) Explanation
2019 Supplemental Budget Amendment #2
General Fund - Supplemental Appropriations
Salary and Wages Community Services All Depts ongoing 18,345
Wage Adjustments - 2% budget vs. 4% approved for wage increase in 2019; Wage Scale Adjustments for
Pool staff approved in the bargaining unit contract; Additional Seasonal Help for Public Restroom
Cleaning
Salary and Wages Community Services Parks & Facilities ongoing 40,000 Volunteer Coordinator position (New: partially offset by General Fund Savings)
Professional Services Contract Community Services All Depts one-time 90,000 Contract with BERK Consulting for the Parks, Recreation, Open Space plan
Dog Park Community Services Parks one-time 25,500 Dog Park Fencing - Offset by donation
Repair & Maintenance Community Services Facilities one-time 31,000 Mtn View Pump and Boiler Repairs
Repair & Maintenance Community Services Facilities one-time 10,000 Genera Repairs and Maintenance
Facilities - Operating Supplies Community Services Facilities - Mtn View ongoing 16,013 General Operating Supplies and Small Equipment - Mtn View
230,858
GO Bond Closing Costs GO Debt Service Fund N/A one-time 3,000 Line of Credit Closing Costs higher than appropriated
3,000
Mountain View - Phase III General Capital Mtn View one-time 65,402 Additional Costs for Mtn View Phase III project approved by council
65,402
General Capital Funds - Supplemental Appropriatons
Total General Capital Fund Supplemental Appropriations
Community Services Fund - Supplemental Appropriations
Total Community Svs. Fund Supplemental Appropriatons
GO BOND Debt Svs Fund - Supplemental Appropriations
Total GO Bond Debt Service Fund Supplemental Appropriatons
2
2020 Budget Section 2 (Updated 11/18/19) - Page 6 of 8
City of Port Townsend
Updated on 11/12/19
Description Fund Department Ongoing vs one-time
2019 Expense
Increase/
(Decrease) Explanation
2019 Supplemental Budget Amendment #2
General Fund - Supplemental Appropriations
Golf Course - Professional Services Golf Course Fund one-time 6,000 National Golf Foundation Study - Residual Invoice from 2018 Study paid in 2019
Utility Tax Transfer out Water / Sewer Oper.ongoing 1,097,925 Water/Sewer Utility Tax Transfer out to Gen. Fund, Streets Fund, Comm. Svs. Fund (Accounting Change)
Salaries and Wages Water / Sewer Oper.All Depts.ongoing 66,000 Wage Adjustments - 2% budget vs. 4% approved for wage increase in 2019
Audit Fees savings Water / Sewer Oper.All Depts.one-time (10,000) Savings from no annual audit fees (split between Wtr/Swr Fund and General Fund)
Public Works Allocation savings Water / Sewer Oper.All Depts.one-time (69,050) Public Works Admininstration allocation lower than budget due to staffing vacancies
Principal and Interest Payments on LT2/5MG
savings Water / Sewer Oper.Water Treatment ongoing (177,234)
Water Treatment Plant and 5MG Reservoir loan amortization schedules changed when transferred from
PWTF Board to Dept. of Drinking Water SRF
Real Estate Purchase - City Lake Water / Sewer Oper.Water Distribution one-time 17,500 Additional appropriations needed for City Lake Property Purchase
Capital Funding Transfer savings Water / Sewer Oper.
Water Distrib. / Waste
Water one-time (157,500) Transfer to Water/Sewer Capital less than expected in 2019 to fund capital projects
Kuhn St. Bldg. Repair and Maintenance Water / Sewer Oper.Waste Water one-time 35,000 Reappropriation from 2019 for Kuhn Street House Roof and Window Repairs
Equipment Repair Water / Sewer Oper.Waste Water one-time 13,000 Blower Repair at Waste Water Facility
Equipment Fleet Replacement Charge Water / Sewer Oper.
Waste Water /
Biosolids ongoing 42,300 Increase in Fleet Replacement Allocation - Waste Water/Biosolids
Repair and Maintenance - Biosolids Barn Roof Water / Sewer Oper.Biosolids one-time 5,000 Additional appropriations needed for Barn Roof Repair at Biosolids
Salaries and Wages Storm Operations Storm Oper.ongoing 34,500 Wage Adjustments - 2% budget vs. 4% approved for wage increase in 2019
Storm Fund Loan Financing Storm Operations Storm Oper.ongoing 63,161
CERB Loan Payments higher than budget. Amortization received from WA State is based full loan
balance rather than Life to Date Draw Balance
Public Works Allocation savings Storm Operations Storm Oper.one-time (9,700) Public Works Admininstration allocation lower than budget due to staffing vacancies
Utility Tax Transfer out Storm Operations Storm Oper.ongoing 129,065 Stormwater Utility Tax Transfer out to Gen. Fund, Streets Fund, Comm. Svs. Fund (Accounting Change)
Equipment Savings - Storm Operations Storm Operations Storm Oper.one-time (12,000) Equipment Budget Not Used
Paper mill Reimbursement
OGWS (Transmission
Line Fund)N/A one-time 128,416
Payment to paper mill for proportionate share of Forest Service Grant for repair and maintenance of
washed out road
Interfund Loan
OGWS (Transmission
Line Fund)N/A one-time 90,000 Interfund Loan from OGWS Fund to Comm. Svs. Fund to finance PROS Plan
General Operating Expenses 7,775 Misc. Other operating Costs
1,300,158
Enterprise Funds - Supplemental Appropriatons
Total Enterprise Fund Supplemental Appropriatons
3
2020 Budget Section 2 (Updated 11/18/19) - Page 7 of 8
City of Port Townsend
Updated on 11/12/19
Description Fund Department Ongoing vs one-time
2019 Expense
Increase/
(Decrease) Explanation
2019 Supplemental Budget Amendment #2
General Fund - Supplemental Appropriations
Fleet Purchases Fleet Replacement Replacement one-time 130,000 Fleet Purchases (Two Trucks for Water / Sewer Dept) approved by Council but not in budget
130,000
Firemans Pension Benefit Distributions Fireman's Pension Fund ongoing 8,628 Additional appropriations for Benefit Distributions
8,628
2,931,442 TOTAL ALL FUNDS - SUPPLEMENTAL APPROPRIATIONS
Fiduciary Funds - Supplemental Appropriatons
Total Fiduciary Fund Supplemental Appropriations
Internal Service Funds - Supplemental Appropriatons
Total Internal Service Fund Supplemental Appropriations
4
2020 Budget Section 2 (Updated 11/18/19) - Page 8 of 8
Ordinance 3240
Page 1 of 2
ORDINANCE NO. 3240
AN ORDINANCE ADOPTING THE BUDGET FOR THE CITY OF PORT
TOWNSEND, WASHINGTON, FOR THE FISCAL YEAR
ENDING DECEMBER 31, 2020
WHEREAS, the City Manager of the City of Port Townsend, Washington, completed
and placed on file with the City Clerk a proposed budget and estimate of the amount of monies
required to meet the public expenses, bond retirement and interest, reserve funds and expenses of
government of the City for the fiscal year ending December 31, 2020 (the “2020 Preliminary
Budget”), and a notice was published that the City Council would conduct a public hearing on
the 4th of November 2019 at 6:30 p.m., at City Hall for the purpose of receiving public
testimony regarding the preliminary budget for the 2020 fiscal year; and
WHEREAS, the City Council held a public hearing on November 4, 2019 at which all
taxpayers were heard who appeared for or against any part of the preliminary budget; and
WHEREAS, following the public hearing, the City Council met in City Council
Chambers on November 18, 2019 and December 2, 2019 to consider the 2020 Final Budget and
receive further public comment, and made adoptions and changes, as it deemed necessary and
proper; and
WHEREAS, the 2020 Budget does not exceed the lawful limit of taxation allowed by
law to be levied on the property within the City of Port Townsend for the purposes set forth in
the 2020 Final Budget, and the estimated expenditures in each fund set forth in the 2020 Final
Budget are all necessary to carry on the government of the City for fiscal year 2020, and are all
necessary to meet the various needs of the City during the period;
NOW, THEREFORE, the City Council of the City of Port Townsend, Washington, do
ordain as follows:
Section 1. The budget for the City of Port Townsend, Washington, for the fiscal year
2020, is hereby adopted at the fund level as set forth in the document entitled “City of Port
Townsend Final Budget 2020,” a copy of which has been and now is on file with the office of
the City Clerk, and by this reference is incorporated into this Ordinance.
Section 2. Estimated revenues, including fund balances for working capital for each
separate fund of the City of Port Townsend, and aggregate totals for all such funds combined, for
the year 2020, are set forth in summary form in Exhibit A attached, and by this reference are
incorporated in this Ordinance, and are appropriated for expenditure at the fund level during the
2020 budget year.
2020 Budget Section 3 (Updated 11/18/19) - Page 1 of 30
Ordinance 3240
Page 2 of 2
Section 3. The City Clerk is directed to transmit a certified copy of the City of Port
Townsend Final Budget 2020 to the Office of State Auditor and to the Association of
Washington Cities.
Section 4. This Ordinance shall take effect upon its passage, approval, and publication
in the form and manner provided by law.
ADOPTED by the City Council of the City of Port Townsend, Washington, at a regular
meeting thereof, held this 2nd day of December 2019.
_____________________________
Deborah S. Stinson
Mayor
Attest: Approved as to Form:
_____________________________ ________________________________
Joanna Sanders, MMC Heidi Greenwood
City Clerk City Attorney
2020 Budget Section 3 (Updated 11/18/19) - Page 2 of 30
2019 2020 2020 2020 2020
Ending Fund
Balance
Proposed
Revenues
Propsed
Expenses
Proposed Rev
vs. Exp
Projected
Ending Fund
Balance
GENERAL FUND 1,651,375 10,414,829 10,413,656 1,173 1,652,548
Drug Enforc. / Contingency 185,689 3,000 - 3,000 188,689
Street 231,356 957,247 957,247 - 231,356
Library 240,907 1,127,000 1,146,266 (19,266) 221,641
Real Estate Excise Tax 447,511 516,000 550,000 (34,000) 413,511
Lodging Tax 237,788 543,500 563,624 (20,124) 217,664
Fire / EMS 4,793 15,210 20,000 (4,790) 3
Affordable Housing 21,534 80,008 74,658 5,350 26,884
Community Development Block Grant 181,329 13,020 13,000 20 181,349
Community Services 102,003 2,219,486 2,219,486 0 102,003
TOTAL SPECIAL REV FUNDS 1,652,910 5,474,471 5,544,281 (69,810) 1,583,099
DEBT SERVICE FUND 94,260 1,710,400 1,712,551 (2,151) 92,109
General Capital 46,256 51,086 51,086 - 46,256
Street Capital 173,056 2,568,792 2,577,692 (8,900) 164,156
CAPITAL PROJECTS FUNDS 219,312 2,619,878 2,628,778 (8,900) 210,412
Golf Course 12,249 8,650 15,714 (7,064) 5,185
System Development 824,902 322,500 535,000 (212,500) 612,402
Water / Sewer Operations 2,184,042 8,071,596 7,972,710 98,886 2,282,928
Water / Sewer Capital 2,858,635 2,521,855 2,121,003 400,852 3,259,487
Storm Operations 140,858 1,122,988 1,008,942 114,046 254,904
Storm Capital 14,219 710,350 710,000 350 14,569
ENTERPRISE FUNDS 6,034,904 12,757,939 12,363,369 394,570 6,429,474
Public Works Admin 22,997 598,425 598,134 291 23,288
IT Equipment O&M / Replacement 3,162 446,890 450,052 (3,162) 1
Fleet Equipment O&M / Replacement 1,659,429 815,377 906,064 (90,687) 1,568,742
Engineering Services 52,289 826,200 819,403 6,797 59,086
Unemployment Self-Insurance 25,509 10,400 10,000 400 25,909
INTERNAL SERVICE FUNDS 1,763,386 2,697,292 2,783,653 (86,361) 1,677,025
Firemen's Pension 258,809 38,235 29,027 9,208 268,017
Custodial / Refundable Deposits 235,339 - - - 235,339
Memorial Fund 2,549 - - - 2,549
FIDUCIARY FUNDS 496,697 38,235 29,027 9,208 505,905
GRAND TOTAL $11,912,845 $35,713,044 $35,475,314 $237,730 $12,150,574
CITY OF PORT TOWNSEND
2020 PROPOSED BUDGET FUND SUMMARY
Ordinance 3240 Exhibit A
2020 Budget Section 3 (Updated 11/18/19) - Page 3 of 30
2020 Budget Section 3 (Updated 11/18/19) - Page 4 of 30
2020 BUDGET SUMMARIES BY FUND
TABLE OF CONTENTS
PAGE FUND
7 GENERAL FUND
8 DRUG ENFORCEMENT / CONTINGENCY FUND
9 STREET FUND
10 LIBRARY FUND
11 REAL ESTATE EXCISE TAX FUND
12 LODGING TAX FUND
13 FIRE / EMS FUND
14 AFFORDABLE HOUSING FUND
15 COMMUNITY DEVELOPMENT BLOCK GRANTS
16 COMMUNITY SERVICES FUND
17 GENERAL OBLIGATION DEBT SERVICE FUND
18 GENERAL CAPITAL PROJECTS
19 STREET CAPITAL PROJECTS
20 GOLF COURSE FUND
21 SYSTEM DEVELOPMENT CHARGES FUND
22 WATER/SEWER OPERATIONS FUND
23 WATER/SEWER CAPITAL PROJECTS
24 STORMWATER OPERATIONS FUND
25 STORMWATER CAPITAL PROJECTS
26 PUBLIC WORKS ADMININSTRATION
27 EQUIPMENT RENTAL & REPLACEMENT FUND
28 ENGINEERING FUND
29 UNEMPLOYMENT FUND
30 FIREMEN'S PENSION FUND
2020 Budget Section 3 (Updated 11/18/19) - Page 5 of 30
2020 Budget Section 3 (Updated 11/18/19) - Page 6 of 30
2017 2018 2019 2019 2020 Increase/Decrease
Actual Actual Adopted Supplemental Proposed 2020 Proposed vs
2019 Adopted
Beginning Fund Balance 1,421,392 1,776,965 1,904,790 1,904,790 1,651,375
Revenues
Taxes 6,229,393 6,688,161 5,981,453 7,414,761 7,660,431 28.1%
Licenses & Permits 389,926 439,649 393,090 496,380 509,150 29.5%
Intergovernmental Services 234,154 287,812 244,864 237,368 237,279 -3.1%
Charges for Goods & Services 1,477,229 1,747,092 1,701,376 1,701,963 1,837,069 8.0%
Fines & Penalties 50,933 58,811 52,300 52,135 57,800 10.5%
Miscellaneous Revenue 68,446 111,796 88,725 128,560 111,300 25.4%
Other Financing Sources 257,495 2,036 500 1,875 1,800 260.0%
Operating Transfers In 10,150 14,807 639,235 - - -100.0%
Total Revenue 8,717,726 9,350,164 9,101,543 10,033,042 10,414,829 14.4%
Expenditures
Salaries & Wages 3,104,370 3,323,881 3,420,298 3,450,950 3,600,234 5.3%
Personnel Benefits 1,268,171 1,397,150 1,462,016 1,417,531 1,573,202 7.6%
Supplies 55,226 61,500 71,945 78,292 68,545 -4.7%
Insurance 356,571 402,567 493,276 490,873 566,586 14.9%
Professional Services 297,348 249,128 1,027,835 1,181,264 1,138,026 10.7%
Communications 59,497 55,477 60,476 59,743 51,996 -14.0%
Advertising 39,537 10,594 40,950 35,950 34,000 -17.0%
Operating Rents & Leases 52,433 58,731 57,132 57,020 38,606 -32.4%
Intergovernmental Services 806,212 872,517 - - -
Machinery & Equipment 88,289 63,196 222,028 343,444 117,599 -47.0%
Repair & Maintenance 24,728 34,214 35,748 38,551 6,150 -82.8%
Equipment Rental 303,930 446,058 382,101 382,101 406,275 6.3%
Training/Memberships & Travel 90,468 106,947 132,279 144,270 126,079 -4.7%
Miscellaneous 302,547 88,538 68,996 67,147 47,554 -31.1%
Transfers Out 1,512,826 2,051,844 1,622,035 2,539,321 2,638,804 62.7%
Total Expenditure 8,362,153 9,222,339 9,097,115 10,286,457 10,413,656 14.5%
Net Change in Fund Balance 355,573 127,824 4,428 (253,415) 1,173 -73.5%
Ending Fund Balance 1,776,965 1,904,790 1,909,218 1,651,375 1,652,548
Fund Bal. 8-15 % of Revenue 20.4%20.4%21.0%16.5%15.9%Meets Policy
General Fund - Expenditures by Department
Mayor & Council 163,466 132,746 120,729 125,798 105,673 -12.5%
City Manager 354,010 339,138 327,249 399,443 330,323 0.9%
City Attorney 553,724 665,652 647,519 677,570 619,148 -4.4%
Human Resources 373,240 388,576 414,680 421,832 322,118 -22.3%
Planning & Development Services 1,042,027 1,103,785 1,089,287 1,121,089 1,128,350 3.6%
Finance Department 295,449 325,944 351,727 326,866 486,968 38.5%
Police Administration 505,149 605,558 651,119 696,523 680,530 4.5%
Police Operations 2,603,645 2,792,117 2,808,809 3,060,148 3,122,624 11.2%
Police Training 31,634 31,716 30,105 30,155 37,401 24.2%
City Clerk 261,949 268,510 274,882 298,214 304,381 10.7%
Contracts & Intergovernmental 660,222 514,962 752,474 625,033 631,336 -16.1%
PEG Access 20,875 14,615 21,500 9,200 11,000 -48.8%
Transfers Out 1,496,763 2,039,020 1,607,035 2,494,586 2,633,804 63.9%
Total Expenditures 8,362,153 9,222,339 9,097,115 10,286,457 10,413,656 14.5%
BUDGET SUMMARY
GENERAL FUND
General Fund
City of Port Townsend
2020 Budget Section 3 (Updated 11/18/19) - Page 7 of 30
2017 2018 2019 2019 2020 Increase/Decrease
Actual Actual Adopted Supplemental Proposed 2020 Proposed vs 2019
Adopted
Beginning Fund Balance 120,835 171,342 182,489 182,489 185,689
Revenues
Taxes - - - -
Miscellaneous Revenue 507 1,704 1,200 3,200 3,000 150%
Operating Transfers In 50,000 9,443 - - -
Total Revenue 50,507 11,147 1,200 3,200 3,000 150%
Expenditures
Miscellaneous
Transfers Out - - - - -
Total Expenditure - - - - -
Net Change in Fund Balance 50,507 11,147 1,200 3,200 3,000 150.0%
Ending Fund Balance 171,342 182,489 183,689 185,689 188,689
Fund Balance 2% of GF Rev 2.1%2.0%2.0%2.0%2.0%Meets Policy
DRUG ENFORCEMENT / CONTINGENCY FUND
BUDGET SUMMARY
Contingency Fund
City of Port Townsend
2020 Budget Section 3 (Updated 11/18/19) - Page 8 of 30
2017 2018 2019 2019 2020 Increase/Decrease
Actual Actual Adopted Supplemental Proposed 2020 Proposed vs
2019 Adopted
Beginning Fund Balance 304,942 380,773 260,855 260,855 231,356
Revenues
Taxes 607,528 627,707 635,010 635,010 694,625 9.4%
Licenses & Permits - 462 500 500 500 0.0%
Intergovernmental Services 215,390 221,353 222,493 212,090 217,283 -2.3%
Charges for Goods & Services 13,326 8,259 10,000 12,956 - -100.0%
Miscellaneous Revenue 44,661 4,335 2,800 4,897 4,000 42.9%
Other Financing Sources 3,340 8,111 - 688 -
Operating Transfers In 0 - - - 40,839
Total Revenue 884,245 870,227 870,803 866,141 957,247 9.9%
Expenditures
Salaries & Wages 128,981 144,190 156,218 136,969 136,867 -12.4%
Personnel Benefits 62,825 73,343 79,521 69,212 72,902 -8.3%
Supplies 41,141 37,906 42,490 45,000 41,000 -3.5%
Professional Services 4,783 8,961 21,950 28,580 26,130 19.0%
Communications 598 598 500 500 500 0.0%
Advertising - - - - -
Operating Rents & Leases - 306 - - 300
Intergovernemental Services 6,329 1,000 - -
Machinery & Equipment - 3,570 15,000 17,490 3,762 -74.9%
Other Improvements 87,469 138,539 50,000 50,000 100,000 100.0%
Repair & Maintenance 42,975 57,564 60,000 60,000 60,000 0.0%
Equipment Rental 45,718 91,797 65,585 70,013 68,562 4.5%
Utilities 116,129 138,380 135,000 135,000 147,920 9.6%
Training/Memberships & Travel 1,890 955 2,500 2,500 2,900 16.0%
Overhead Allocation 85,523 108,969 119,909 101,976 118,657 -1.0%
Miscellaneous 4,397 9,168 3,500 3,500 2,847 -18.7%
Transfers Out 179,656 174,900 178,400 174,900 174,900 -2.0%
Total Expenditure 808,414 990,144 930,573 895,640 957,247 2.9%
Net Change in Fund Balance 75,831 (119,918) (59,770) (29,499) - 100.0%
Ending Fund Balance 380,773 260,855 201,085 231,356 231,356
Fund Bal. 2-3 % of Expenditures 47.1%26.3%21.6%25.8%24.2%Meets Policy
STREET FUND
BUDGET SUMMARY
Street Fund
City of Port Townsend
2020 Budget Section 3 (Updated 11/18/19) - Page 9 of 30
2017 2018 2019 2019 2020 Increase/Decrease
Actual Actual Adopted Supplemental Proposed 2020 Proposed vs
2019 Adopted
Beginning Fund Balance 205,694 240,914 214,522 214,522 240,907
Revenues
Taxes 1,039,847 1,068,190 1,095,824 1,095,824 1,124,000 2.6%
Licenses & Permits - - - - -
Intergovernmental Services - - - - -
Charges for Goods & Services - - - - -
Fines & Penalties 4,325 1,412 1,603 -
Miscellaneous Revenue 3,744 7,711 52,373 -
Other Financing Sources 1,267 74 1,320 3,656 3,000 127.3%
Operating Transfers In - - - - -
Total Revenue 1,049,183 1,077,387 1,097,144 1,153,456 1,127,000 2.7%
Expenditures
Salaries & Wages 410,243 436,068 458,773 432,410 446,347 -2.7%
Personnel Benefits 173,105 187,399 198,422 187,174 189,318 -4.6%
Supplies 10,872 12,936 12,500 12,500 11,000 -12.0%
Professional Services 21,778 37,942 27,000 27,000 43,724 61.9%
Communications 15,790 12,834 14,436 14,436 15,000 3.9%
Advertising - 235 500 500 1,500 200.0%
Operating Rents & Leases 1,733 2,239 1,968 1,968 2,000 1.6%
Intergovernmental Services - - - -
Equipment & Acquisitions 68,993 75,480 71,500 76,009 66,500 -7.0%
Repair & Maintenance - 1,099 - - 2,500
Equipment Rental 63,806 74,412 94,443 94,443 91,774 -2.8%
Utilities 27,921 28,100 32,016 32,016 32,000 0.0%
Training/Memberships & Travel 7,880 7,646 8,500 8,500 12,315 44.9%
Miscellaneous 10,592 12,417 7,200 7,200 7,200 0.0%
Overhead Allocation 197,968 214,972 232,915 232,915 225,088 -3.4%
Transfers Out 3,282 1,500 - - -100.0%
Total Expenditure 1,013,963 1,103,779 1,161,673 1,127,071 1,146,266 -1.3%
Net Change in Fund Balance 35,220 (26,392) (64,529) 26,385 (19,266) 70.1%
Ending Fund Balance 240,914 214,522 149,993 240,907 221,641
Fund Balance 5-8% of Tax Rev.23.2%20.1%13.7%22.0%19.7%Meets Policy
LIBRARY FUND
BUDGET SUMMARY
Library Fund
City of Port Townsend
2020 Budget Section 3 (Updated 11/18/19) - Page 10 of 30
2017 2018 2019 2019 2020 Increase/Decrease
Actual Actual Adopted Supplemental Proposed 2020 Proposed vs
2019 Adopted
Beginning Fund Balance 179,939 301,052 380,284 380,284 447,511
Revenues
Taxes 725,916 615,769 510,000 570,000 510,000 0.0%
Miscellaneous Revenue
Other Financing Sources 1,196 3,463 2,200 7,227 6,000 172.7%
Operating Transfers In - - - - -
Total Revenue 727,113 619,232 512,200 577,227 516,000 0.7%
Expenditures
Miscellaneous - - - -
Transfers Out 606,000 540,000 510,000 510,000 550,000 7.8%
Total Expenditure 606,000 540,000 510,000 510,000 550,000 7.8%
Net Change in Fund Balance 121,113 79,232 2,200 67,227 (34,000) -1645.5%
Ending Fund Balance 301,052 380,284 382,484 447,511 413,511
Sufficient to Meet Obligations Meets Policy
REAL ESTATE EXCISE TAX FUND
BUDGET SUMMARY
REET
City of Port Townsend
2020 Budget Section 3 (Updated 11/18/19) - Page 11 of 30
2017 2018 2019 2019 2020 Increase/Decrease
Actual Actual Adopted Supplemental Proposed 2020 Proposed vs
2019 Adopted
Beginning Fund Balance 177,611 252,500 246,908 246,908 237,788
Revenues
Taxes 508,503 534,185 550,000 560,000 540,000 -1.8%
Miscellaneous Revenue - -
Other Financing Sources - 1,616 750 4,416 3,500 366.7%
Operating Transfers In - - - - -
Total Revenue 508,503 535,801 550,750 564,416 543,500 -1.3%
Expenditures
Professional Services 267,860 321,328 293,500 293,500 313,000 6.6%
Advertising 49,558 38,188 25,000 25,000 28,500 14.0%
Machinery & Equipment - - - -
Other Improvements - - 76,000 76,000 65,000 -14.5%
Miscellaneous 6,835 44,040 43,500 44,128 10,300 -76.3%
Overhead Allocation 9,361 12,838 9,908 9,908 21,824 120.3%
Transfers Out - Debt Service 100,000 125,000 125,000 125,000 125,000 0.0%
Total Expenditure 433,614 541,394 572,908 573,536 563,624 -1.6%
Net Change in Fund Balance 74,889 (5,592) (22,158) (9,120) (20,124) 9.2%
Ending Fund Balance 252,500 246,908 224,750 237,788 217,664
Sufficient to Meet Obligations Meets Policy
LODGING TAX FUND
BUDGET SUMMARY
Lodging Tax
City of Port Townsend
2020 Budget Section 3 (Updated 11/18/19) - Page 12 of 30
2017 2018 2019 2019 2020 Increase/Decrease
Actual Actual Adopted Supplemental Proposed 2020 Proposed vs
2019 Adopted
Beginning Fund Balance 15,887 2,525 4,622 4,622 4,793
Revenues
Taxes 2,293,433 2,369,499 2,411,574 2,411,574 15,000 -99.4%
Miscellaneous Revenue 632 2,067 1,000 3,597 210 -79.0%
Operating Transfers In - - - - -
Total Revenue 2,294,065 2,371,565 2,412,574 2,415,171 15,210 -99.4%
Expenditures
Intergovernmental Services 2,307,427 2,369,469 2,411,574 2,415,000 20,000 -99.2%
Miscellaneous - - - - -
Transfers Out - - - - -
Total Expenditure 2,307,427 2,369,469 2,411,574 2,415,000 20,000 -99.2%
Net Change in Fund Balance (13,362) 2,097 1,000 171 (4,790) -579.0%
Ending Fund Balance 2,525 4,622 5,622 4,793 3
Sufficient to Meet Obligations Meets Policy
FIRE/EMS FUND
BUDGET SUMMARY
Fire/EMS
City of Port Townsend
2020 Budget Section 3 (Updated 11/18/19) - Page 13 of 30
2017 2018 2019 2019 2020 Increase/Decrease
Actual Actual Adopted Supplemental Proposed 2020 Proposed vs
2019 Adopted
Beginning Fund Balance 40,780 10,922 21,080 21,080 21,534
Revenues
Taxes 10,000 10,000 10,000 10,000 79,658 696.6%
Miscellaneous Revenue 142 158 100 454 350 250.0%
Operating Transfers In - - - - -
Total Revenue 10,142 10,158 10,100 10,454 80,008 692.2%
Expenditures
Miscellaneous 30,000 10,000 10,000 10,000 0.0%
Transfers Out 10,000 - - - 64,658
Total Expenditure 40,000 - 10,000 10,000 74,658 646.6%
Net Change in Fund Balance (29,858) 10,158 100 454 5,350 5250.0%
Ending Fund Balance 10,922 21,080 21,180 21,534 26,884
Sufficient to Meet Obligations Meets Policy
AFFORDABLE HOUSING FUND
BUDGET SUMMARY
Affordable Housing
City of Port Townsend
2020 Budget Section 3 (Updated 11/18/19) - Page 14 of 30
2017 2018 2019 2019 2020 Increase/Decrease
Actual Actual Adopted Supplemental Proposed 2020 Proposed vs
2019 Adopted
Beginning Fund Balance 148,159 168,421 176,617 176,617 181,329
Revenues
Intergovernmental Services 19,619 46,519 13,424 16,090 10,020 -25.4%
Miscellaneous Revenue 643 1,677 1,000 3,622 3,000 200.0%
Operating Transfers In - - - - -
Total Revenue 20,262 48,196 14,424 19,712 13,020 -9.7%
Expenditures
Miscellaneous - 40,000 15,000 15,000 13,000 -13.3%
Transfers Out - - - - -
Total Expenditure - 40,000 15,000 15,000 13,000 -13.3%
Net Change in Fund Balance 20,262 8,196 (576) 4,712 20 103.5%
Ending Fund Balance 168,421 176,617 176,041 181,329 181,349
Sufficient to Meet Obligations Meets Policy
COMMUNITY DEVELOPMENT BLOCK GRANTS
BUDGET SUMMARY
CDBG
City of Port Townsend
2020 Budget Section 3 (Updated 11/18/19) - Page 15 of 30
2017 2018 2019 2019 2020 Increase/Decrease
Actual Actual Adopted Supplemental Proposed 2020 Proposed vs
2019 Adopted
Beginning Fund Balance 125,939 88,594 101,006 101,006 102,003
Revenues
Taxes 706,067 643,135 575,901 585,036 602,476 4.6%
Charges for Goods & Services 172,767 194,916 229,500 202,831 237,775 3.6%
Fines & Penalties - -
Miscellaneous Revenue 84,709 69,514 60,900 107,397 57,400 -5.7%
Other Financing Sources - 19,840 18,950 109,500 19,500 2.9%
Operating Transfers In 912,711 1,124,000 1,131,541 1,237,866 1,302,335 15.1%
Total Revenue 1,876,254 2,051,405 2,016,792 2,242,630 2,219,486 10.1%
Expenditures
Salaries & Wages 678,420 729,419 748,547 795,571 855,701 14.3%
Personnel Benefits 334,090 355,240 371,639 382,960 426,200 14.7%
Supplies 255,239 184,641 180,280 173,956 179,500 -0.4%
Professional Services 63,253 66,526 73,600 178,250 89,821 22.0%
Communications 13,654 13,385 14,140 14,140 14,400 1.8%
Advertising 625 1,174 3,000 1,810 3,000 0.0%
Operating Rents & Leases 43,619 44,533 44,269 44,533 5,050 -88.6%
Intergovernmental Services - 500 - - -
Machinery & Equipment 6,714 3,474 9,810 5,633 - -100.0%
Other Improvements (2,426) - - - -
Repair & Maintenance 82,257 123,058 65,120 131,049 77,525 19.0%
Equipment Rental 51,838 83,106 59,511 59,511 97,549 63.9%
Utilities 147,683 165,768 155,000 165,998 176,500 13.9%
Training/Memberships & Travel 15,023 14,078 15,753 15,399 20,350 29.2%
Miscellaneous 25,633 27,825 23,782 26,500 28,365 19.3%
Overhead Allocation 148,105 225,017 246,324 246,323 215,075 -12.7%
Debt Principal (Interfund Loan)- - - - 30,000
Debt Interest (Interfund Loan)- - - - 450
Transfers Out 49,871 1,250 - - -
Total Expenditure 1,913,599 2,038,993 2,010,775 2,241,633 2,219,486 10.4%
Net Change in Fund Balance (37,345) 12,412 6,017 997 - -100.0%
Ending Fund Balance 88,594 101,006 107,023 102,003 102,003
Fund Bal. 2-3 % of Expenditures 4.6%5.0%5.3%4.6%4.6%Meets Policy
Community Services Fund - Expenditures by Department
GF Overhead 148,105 225,017 246,324 246,323 215,075 -12.7%
Arts Commission 25,359 22,751 24,600 24,600 24,600 0.0%
City Facilities 469,166 503,726 507,781 626,227 596,972 17.6%
Mountain View Facilities 323,668 271,733 187,564 231,893 181,325 -3.3%
Parks Maintenance 474,265 529,920 484,940 556,650 609,405 25.7%
Pool 423,035 484,596 558,566 554,940 591,109 5.8%
Events - - 1,000 1,000 1,000 0.0%
Transfers Out 50,000 1,250 - - -
Total Expenditures 1,913,599 2,038,993 2,010,775 2,241,633 2,219,486 10.4%
City of Port Townsend
COMMUNITY SERVICES FUND
BUDGET SUMMARY
Community Svs
2020 Budget Section 3 (Updated 11/18/19) - Page 16 of 30
2017 2018 2019 2019 2020 Increase/Decrease
Actual Actual Adopted Supplemental Proposed 2020 Proposed vs
2019 Adopted
Beginning Fund Balance 71,095 86,745 89,905 89,905 94,260
Revenues
Taxes 400,257 405,648 411,135 402,000 402,000 -2.2%
Miscellaneous Revenue 6,404 5,502 3,000 8,310 6,500 116.7%
Bond Proceeds 3,304,098 - - - -
Operating Transfers In 1,292,488 1,257,400 1,283,900 1,283,900 1,301,900 1.4%
Total Revenue 5,003,247 1,668,550 1,698,035 1,694,210 1,710,400 0.7%
Expenditures
Debt Service Principal 890,000 870,000 895,000 895,000 944,503 5.5%
Debt Service Interest 688,619 793,891 788,855 788,855 763,048 -3.3%
Professional Services 1,595 1,500 3,000 6,000 5,000 66.7%
Bond Issue Costs 103,285 - - -
Transfers Out 3,304,098 - - - -
Total Expenditure 4,987,597 1,665,391 1,686,855 1,689,855 1,712,551 1.5%
Net Change in Fund Balance 15,650 3,160 11,180 4,355 (2,151) -119.2%
Ending Fund Balance 86,745 89,905 101,085 94,260 92,109
Sufficient to Meet Obligations Meets Policy
** In 2017, The City Refinanced its 2018 GO Bonds. Receipts were recoginized in this fund and later transferred to a Capital Projects Fund.
GENERAL OBLIGATION DEBT SERVICE
BUDGET SUMMARY
General Debt Svs **
City of Port Townsend
2020 Budget Section 3 (Updated 11/18/19) - Page 17 of 30
2017 2018 2019 2019 2020 Increase/Decrease
Actual Actual Adopted Supplemental Proposed 2020 Proposed vs
2019 Adopted
Beginning Fund Balance 1,309,017 3,419,308 1,589,739 1,589,739 46,256
Revenues
State & Federal Grants 13,019 206,876 203,500 203,500 - -100.0%
Miscellaneous Revenue 18,992 26,563 83,000 103,617 - -100.0%
Other Financing Sources - 834,000 - 60,000 -
Operating Transfers In 3,027,177 1,394,944 232,081 232,483 51,086 -78.0%
Total Revenue 3,059,187 2,462,384 518,581 599,600 51,086 -90.1%
Expenditures
G/F Overhead 61,676 25,841 29,331 29,331 51,086 74.2%
Intergovernemental Services 191,247 46,461 40,000 43,000 -100.0%
Building Improvements 258,409 1,606,389 366,500 428,500 -100.0%
Land Acquisitions - - - -
Other Improvements - - 580,100 580,100 -100.0%
Debt Service Principal - 250,000 - -
Debt Service Interest - 4,495 - -
Debt Issue Costs - 1,500 - -
Transfers Out 437,564 2,357,267 1,061,750 1,062,152 - -100.0%
Total Expenditure 948,896 4,291,953 2,077,681 2,143,083 51,086 -97.5%
Net Change in Fund Balance 2,110,291 (1,829,569) (1,559,100) (1,543,483) - 100.0%
Ending Fund Balance 3,419,308 1,589,739 30,639 46,256 46,256
Sufficient to Meet Obligations Meets Policy
General CIP Fund Breakdown:
Beginning 2017 Change in 2018 Change in 2019 Change in 2020 Change in 2020 Ending
Fund Balance Fund Balance Fund Balance Fund Balance Fund Balance Fund Balance
301 - General Capital 80,048 (75,048) (82,849) 78,152 - 303
315 - 2015 Bonds 1,228,970 (68,157) (1,010,488) (150,255) - 70
350 - 2017 Bonds - 2,253,496 (1,320,221) (898,771) - 34,504
355 - 2018 Bonds - - 583,989 (572,609) - 11,380
Total 1,309,017 2,110,291 (1,829,569) (1,543,483) - 46,256
City of Port Townsend
GENERAL CAPITAL PROJECTS
BUDGET SUMMARY
General CIP
2020 Budget Section 3 (Updated 11/18/19) - Page 18 of 30
2017 2018 2019 2019 2020 Increase/Decrease
Actual Actual Adopted Supplemental Proposed 2020 Proposed vs
2019 Adopted
Beginning Fund Balance (116,722) (328,825) 262,333 262,333 173,056
Revenues
State & Federal Grants 2,153,285 775,306 1,266,000 654,426 2,259,000 78.4%
Miscellaneous Revenue 271 276,770 125 27,569 1,100 780.0%
Other Financing Sources 19,178 836,273 170,000 116,456 210,000 23.5%
Operating Transfers In 863,160 1,057,653 955,704 955,704 98,692 -89.7%
Total Revenue 3,035,894 2,946,003 2,391,829 1,754,155 2,568,792 7.4%
Expenditures
G/F Overhead 44,284 39,489 96,704 96,704 58,692 -39.3%
Intergovernemental Services 557,515 270,980 391,000 348,800 350,000 -10.5%
Land Acquisitions - - -
Road Improvements 2,646,198 1,846,658 1,097,000 869,613 1,829,000 66.7%
Sidewalk Improvements - 197,717 535,000 451,835 30,000 -94.4%
Debt Issue Costs - - 407,040 76,480 310,000 -23.8%
Miscellaneous - - - - -
Transfers Out - - - - -
Total Expenditure 3,247,998 2,354,844 2,526,744 1,843,432 2,577,692 2.0%
Net Change in Fund Balance (212,103) 591,159 (134,915) (89,277) (8,900) 93.4%
Ending Fund Balance (328,825) 262,333 127,418 173,056 164,156
Sufficient to Meet Obligations Meets Policy
Street CIP Fund Breakdown:
Beginning 2017 Change in 2018 Change in 2019 Change in 2020 Change in 2020 Ending
Fund Balance Fund Balance Fund Balance Fund Balance Fund Balance Fund Balance
304 - Street Vacation Proceeds 5,325 20 26,501 37,403 600 69,849
305 - Street Capital Fund (122,046) (212,124) 564,657 (126,680) (9,500) 94,307
- - - - - -
Total (116,722) (212,103) 591,159 (89,277) (8,900) 164,156
City of Port Townsend
STREET CAPITAL PROJECTS
BUDGET SUMMARY
Street CIP
2020 Budget Section 3 (Updated 11/18/19) - Page 19 of 30
Golf Course 2017 2018 2019 2019 2020 Increase/Decrease
Fiduciary Fund Actual Actual Adopted Supplemental Proposed 2020 Proposed vs
2019 Adopted
Beginning Fund Balance 37,297 42,296 27,728 27,728 12,249
Revenues
Miscellaneous Revenue 9,883 8,298 10,000 8,400 8,400 -16.0%
Other Financing Sources - 350 250 350 250 0.0%
Operating Transfers In - - - - -
Total Revenue 9,883 8,648 10,250 8,750 8,650 -15.6%
Expenditures
G/F OH Alloc 2,698 20,243 7,229 7,229 10,714 48.2%
Supplies 2,186 1,861 6,000 6,000 2,500 -58.3%
Repair & Maintenance 1,112 5,000 5,000 2,500 -50.0%
Other Improvements - - -
Miscellaneous - - 6,000
Transfers Out - - - - -
Total Expenditure 4,884 23,216 18,229 24,229 15,714 -13.8%
Net Change in Fund Balance 4,999 (14,568) (7,979) (15,479) (7,064) 11.5%
Ending Fund Balance 42,296 27,728 19,749 12,249 5,185
Sufficient to Meet Obligations Meets Policy
GOLF COURSE FUND
BUDGET SUMMARY
City of Port Townsend
2020 Budget Section 3 (Updated 11/18/19) - Page 20 of 30
2017 2018 2019 2019 2020 Increase/Decrease
Actual Actual Adopted Supplemental Proposed 2020 Proposed vs
2019 Adopted
Beginning Fund Balance 1,997,066 1,715,738 912,674 912,674 824,902
Revenues
Charges for Goods & Services 397,507 294,786 328,452 300,744 308,500 -6.1%
Miscellaneous Revenue 8,166 12,150 10,000 16,484 14,000 40.0%
Operating Transfers In - - - - -
Total Revenue 405,672 306,936 338,452 317,228 322,500 -4.7%
Expenditures
Miscellaneous - - -
Overhead Allocation - - -
Transfers Out 687,000 1,110,000 600,000 405,000 535,000 -10.8%
Total Expenditure 687,000 1,110,000 600,000 405,000 535,000 -10.8%
Net Change in Fund Balance (281,328) (803,064) (261,548) (87,772) (212,500) 18.8%
Ending Fund Balance 1,715,738 912,674 651,126 824,902 612,402
Sufficient to Meet Obligations Meets Policy
SYSTEM DEVELOPMENT CHARGES
BUDGET SUMMARY
SDCs
City of Port Townsend
2020 Budget Section 3 (Updated 11/18/19) - Page 21 of 30
2017 2018 2019 2019 2020 Increase/Decrease
Actual Actual Adopted Supplemental Proposed 2020 Proposed vs
2019 Adopted
Beginning Fund Balance 3,018,070 3,327,671 2,160,229 2,160,229 2,184,042
Revenues
Intergovernmental Services 528 - -
Charges for Goods & Services 4,920,688 5,527,213 5,529,875 6,709,035 6,833,424 23.6%
Fines & Penalties - - - -
Miscellaneous Revenue 76,831 83,563 74,000 101,663 99,750 34.8%
Other Financing Sources 2,700 - -100.0%
Operating Transfers In 676,863 981,146 1,350,791 1,143,775 1,138,422 -15.7%
Total Revenue 5,674,911 6,591,921 6,957,366 7,954,473 8,071,596 16.0%
Expenditures
Overhead Charges 690,696 716,494 790,381 721,323 876,278 10.9%
Salaries & Wages 1,351,620 1,439,343 1,480,076 1,540,806 1,589,853 7.4%
Personnel Benefits 646,910 713,740 757,397 762,757 792,224 4.6%
Supplies 219,025 234,507 273,912 251,934 305,453 11.5%
Debt Principal 798,627 1,239,506 1,289,679 1,202,989 1,164,096 -9.7%
Debt Interest 136,499 227,823 274,358 183,814 149,771 -45.4%
Professional Services 142,761 77,984 391,977 1,536,298 1,486,652 279.3%
Communications 38,325 46,610 43,757 45,234 43,962 0.5%
Advertising 923 434 880 880 900 2.3%
Operating Rents & Leases 10,850 11,292 15,657 15,692 12,025 -23.2%
Intergovernmental Services 525,748 580,396 335,991 351,000 376,331 12.0%
Machinery & Equipment 30,792 302,906 59,000 84,440 15,000 -74.6%
Other Improvements 45,723 183,759 235,000 232,531 170,100 -27.6%
Repair & Maintenance 57,040 63,619 70,300 84,052 127,322 81.1%
Equipment Rental 311,054 405,777 372,724 416,854 409,083 9.8%
Training/Memberships & Travel 13,218 15,755 37,950 36,950 55,045 45.0%
Miscellaneous 141,046 138,023 49,576 49,226 38,639 -22.1%
Transfers Out 204,452 1,361,395 581,379 413,880 359,976 -38.1%
Total Expenditure 5,365,310 7,759,363 7,059,994 7,930,660 7,972,710 12.9%
Net Change in Fund Balance 309,601 (1,167,442) (102,628) 23,813 98,886 196.4%
Ending Fund Balance 3,327,671 2,160,229 2,057,601 2,184,042 2,282,928
60 Days of Operating Expenses 226 102 106 101 105 Meets Policy
Water/Sewer Operations - Expenditures by Department:
Utility Billing 505,845 565,075 583,462 535,179 583,313 0.0%
Water Disribution 1,456,649 2,092,781 1,931,670 2,428,141 2,418,723 25.2%
Water Quality / WTF 1,347,075 1,975,671 2,062,819 1,903,505 1,907,632 -7.5%
Wastewater Treatment 731,302 1,487,697 981,583 1,540,342 1,608,773 63.9%
Wastewater Collection 911,533 953,142 993,909 1,014,036 969,652 -2.4%
Biosolids 412,906 684,996 506,551 509,457 484,617 -4.3%
Transfers Out - - - - -
Total Expenditures 5,365,310 7,759,363 7,059,994 7,930,660 7,972,710 12.9%
WATER/SEWER OPERATIONS
BUDGET SUMMARY
Water Sewer Op
City of Port Townsend
2020 Budget Section 3 (Updated 11/18/19) - Page 22 of 30
2017 2018 2019 2019 2020 Increase/Decrease
Actual Actual Adopted Supplemental Proposed 2020 Proposed vs
2019 Adopted
Beginning Fund Balance 1,993,823 1,425,357 2,315,963 2,315,963 2,858,635
Revenues
Intergovernmental Services - 567 405,000 482,806 100,000 -75.3%
Charges for Goods & Services 1,194,086 985,818 1,272,075 1,272,075 1,461,329 14.9%
Miscellaneous Revenue 11,676 531,526 214,000 247,194 40,100 -81.3%
Other Financing Sources 3,106,577 2,903,749 - - 30,450
Operating Transfers In 1,157,958 2,616,790 1,271,379 818,879 889,976 -30.0%
Total Revenue 5,470,297 7,038,450 3,162,454 2,820,954 2,521,855 -20.3%
Expenditures
G/F Overhead 144,117 278,894 107,081 107,081 118,370 10.5%
Interfund Loan Payments 250,000 - - 90,000 -
Debt Service Principal 72,632 672,632 170,132 181,132 52,632 -69.1%
Debt Service Interest 34,727 42,114 42,711 61,711 1,579 -96.3%
Intergovernemental Services 552,663 408,817 287,500 235,157 220,000 -23.5%
Other Improvements - Water 3,871,963 2,851,659 280,000 215,080 230,000 -17.9%
Other Improvements - Sewer 190,804 254,437 605,000 266,346 385,000 -36.4%
Miscellaneous - 23,409 - - -
Transfers Out***921,857 1,615,882 1,328,791 1,121,775 1,113,422 -16.2%
Total Expenditure 6,038,763 6,147,844 2,821,215 2,278,282 2,121,003 -24.8%
Net Change in Fund Balance (568,465) 890,606 341,239 542,672 400,852 17.5%
Ending Fund Balance 1,425,357 2,315,963 2,657,202 2,858,635 3,259,487
Sufficient to Meet Obligations Meets Policy
Water / Sewer CIP Fund Breakdown:
Beginning 2017 Change in 2018 Change in 2019 Change in 2020 Change in 2020 Ending
Fund Balance Fund Balance Fund Balance Fund Balance Fund Balance Fund Balance
415 - Water / Sewer CIP (598,618) (764,520) 1,269,658 93,597 1,100 1,217
417 - 1956 Trans Line Fund 1,182,821 (27,846) (435,798) (30,325) 27,845 716,697
419 - 1978 Revenue Bond Fund - - - - - -
430 - Utility Debt Reserve Fund 1,409,619 223,901 56,746 479,400 375,907 2,545,573
Total 1,993,822 (568,465) 890,606 542,672 404,852 3,263,487
** This Fund Summary includes Water / Sewer Capital, Transmission Line Fund, 1978 Revenue Bond Fund & Water/Sewer Debt Service Fund
*** Operating Transfers include funding Water Capital Debt Service in the Water / Sewer Operating Fund
WATER/SEWER CAPITAL
BUDGET SUMMARY
Water Sewer CIP **
City of Port Townsend
2020 Budget Section 3 (Updated 11/18/19) - Page 23 of 30
Storm Water 2017 2018 2019 2019 2020 Increase/Decrease
Operating Fund Actual Actual Adopted Supplemental Proposed 2020 Proposed vs
2019 Adopted
Beginning Fund Balance 76,244 175,136 166,387 166,387 140,858
Revenues
Taxes - - - - -
Licenses & Permits - - - - -
Intergovernmental Services - - - - -
Charges for Goods & Services 565,801 740,339 746,659 956,778 1,119,788 50.0%
Miscellaneous Revenue 510 1,792 1,200 3,843 3,200 166.7%
Operating Transfers In - - - - -
Total Revenue 566,311 742,131 747,859 960,621 1,122,988 50.2%
Expenditures
G/F OH Charges 87,859 100,304 106,236 96,513 126,363 18.9%
Salaries & Wages 201,950 215,824 224,715 250,489 248,669 10.7%
Personnel Benefits 101,948 109,983 117,047 125,846 130,546 11.5%
Supplies 495 9,450 7,480 7,000 7,000 -6.4%
Debt Principal - 6,700 34,593 46,400 592.5%
Debt Interest - 11,500 46,768 34,963 204.0%
Professional Services 912 6,655 14,141 143,686 158,891 1023.6%
Communications -
Advertising -
Operating Rents & Leases -
Intergovernmental 12,584 13,015
Machinery & Equipment - 12,000 12,000 0.0%
Other Improvements -
Repair & Maintenance 8,019 4,000 4,000 4,000 0.0%
Equipment Rental 49,742 95,222 115,755 115,755 88,610 -23.5%
Training/Memberships & Travel - 1,000 1,000 1,000 0.0%
Miscellaneous 706 428 500 500 500 0.0%
Transfers Out 3,204 200,000 160,000 160,000 150,000 -6.3%
Total Expenditure 467,419 750,880 781,074 986,150 1,008,942 29.2%
Net Change in Fund Balance 98,892 (8,749) (33,215) (25,529) 114,046 443.4%
Ending Fund Balance 175,136 166,387 133,172 140,858 254,904
60 Days of Operating Expenses 137 81 62 52 92 Meets Policy
City of Port Townsend
STORM WATER OPERATIONS
BUDGET SUMMARY
2020 Budget Section 3 (Updated 11/18/19) - Page 24 of 30
2017 2018 2019 2019 2020 Increase/Decrease
Actual Actual Adopted Supplemental Proposed 2020 Proposed vs
2019 Adopted
Beginning Fund Balance 126,627 (28,016) 1,775 1,775 14,219
Revenues
Intergovernmental Services - 59,360 - -
Charges for Goods & Services 156,714 - - - -
Miscellaneous Revenue 429 - - 614 350
Other Financing Sources - 378,000 930,000 370,000 560,000 -39.8%
Operating Transfers In - 200,000 160,000 160,000 150,000 -6.3%
Total Revenue 157,143 637,360 1,090,000 530,614 710,350 -34.8%
Expenditures
Interfund Loan Payments - - - -
Debt Service Principal - - 68,000 108,000 -100.0%
Debt Service Interest - - - 3,350
Intergovernmental Services 130,288 163,692 165,000 130,500 195,000 18.2%
Other Improvements - Storm 181,498 443,877 845,000 276,320 515,000 -39.1%
Other Improvements - - - - -
Miscellaneous - - - - -
Transfers Out - - - - -
Total Expenditure 311,786 607,569 1,078,000 518,170 710,000 -34.1%
Net Change in Fund Balance (154,643) 29,791 12,000 12,444 350 -97.1%
Ending Fund Balance (28,016) 1,775 13,775 14,219 14,569
Sufficient to Meet Obligations Meets Policy
City of Port Townsend
STORM WATER CAPITAL FUND
BUDGET SUMMARY
Storm Water CIP
2020 Budget Section 3 (Updated 11/18/19) - Page 25 of 30
2017 2018 2019 2019 2020 Increase/Decrease
Actual Actual Adopted Supplemental Proposed 2020 Proposed vs
2019 Adopted
Beginning Fund Balance 40,295 26,226 28,847 28,847 22,997
Revenues
Charges for Goods & Services 490,119 553,053 611,602 500,001 597,425 -2.3%
Fines & Penalties - - - - -
Miscellaneous Revenue 290 7,860 200 1,170 1,000 400.0%
Operating Transfers In 76 - - - -
Total Revenue 490,486 560,913 611,802 501,171 598,425 -2.2%
Expenditures
Salaries & Wages 275,377 307,667 348,160 296,593 342,565 -1.6%
Personnel Benefits 110,308 108,454 143,848 108,684 136,754 -4.9%
Supplies 2,186 2,615 4,500 2,872 3,000 -33.3%
Professional Services 20,602 11,825 10,000 10,000 13,000 30.0%
Communications 2,385 1,652 2,000 2,000 2,000 0.0%
Advertising - 455 1,000 500 1,000 0.0%
Operating Rents & Leases 2,672 2,632 3,600 2,603 3,840 6.7%
Intergovernemental Services - - - - -
Machinery & Equipment - - 1,000 1,000 1,000 0.0%
Repair & Maintenance - - 500 - - -100.0%
Equipment Rental 23,770 28,822 17,617 17,617 40,777 131.5%
Training/Memberships & Travel 10,534 572 8,000 11,105 5,500 -31.3%
Miscellaneous 779 1,516 1,500 1,500 1,500 0.0%
Overhead Allocation 55,942 58,810 52,547 52,547 47,198 -10.2%
Transfers Out - 33,271 - - -
Total Expenditure 504,554 558,292 594,272 507,021 598,134 0.6%
Net Change in Fund Balance (14,069) 2,621 17,530 (5,850) 291 -98.3%
Ending Fund Balance 26,226 28,847 46,377 22,997 23,288
Sufficient to Meet Obligations Meets Policy
PUBLIC WORKS ADMINISTRATION
BUDGET SUMMARY
PW Admin
(Internal Service Fund)
City of Port Townsend
2020 Budget Section 3 (Updated 11/18/19) - Page 26 of 30
2017 2018 2019 **2019 2020 Increase/Decrease
Actual Actual Adopted Supplemental Proposed 2020 Proposed vs
2019 Adopted
Beginning Fund Balance 790,920 714,116 1,499,762 1,499,762 1,662,591
Revenues
Charges for Goods & Services 865,318 1,270,799 1,146,957 1,146,957 1,236,917 7.8%
Miscellaneous Revenue 11,822 14,227 2,000 43,227 25,350 1167.5%
Operating Transfers In 39 905,111 - - -
Total Revenue 877,179 2,190,137 1,148,957 1,190,184 1,262,267 9.9%
Expenditures
Salaries & Wages 300,838 298,920 302,847 286,517 310,788 2.6%
Personnel Benefits 140,651 134,976 142,261 128,289 148,848 4.6%
Supplies 142,221 162,006 164,500 165,230 172,445 4.8%
Professional Services 2,357 2,059 4,650 4,650 7,285 56.7%
Communications 17,857 19,418 20,380 20,685 19,956 -2.1%
Operating Rents & Leases 188 78 500 500 300 -40.0%
Intergovernemental Services - - - - -
Machinery & Equipment 177,554 619,994 102,853 232,357 474,120 361.0%
Repair & Maintenance 34,669 13,323 32,000 32,000 36,255 13.3%
Equipment Rental 2,997 10,803 8,901 8,901 5,226 -41.3%
Utilities 12,771 12,760 13,900 13,900 14,355 3.3%
Training/Memberships & Travel 5,025 2,062 8,400 8,095 20,550 144.6%
Miscellaneous 5,649 2,302 4,500 4,500 3,705 -17.7%
Overhead Allocation 111,206 125,790 136,618 121,731 142,282 4.1%
Transfers Out - - - - -
Total Expenditure 953,983 1,404,492 942,310 1,027,355 1,356,115 43.9%
Net Change in Fund Balance (76,804) 785,645 206,647 162,829 (93,848) -145.4%
Ending Fund Balance 714,116 1,499,762 1,706,409 1,662,591 1,568,743
Sufficient to Meet Obligations Meets Policy
ERR Fund Breakdown:
Beginning 2017 Change in 2018 Change in 2019 Change in 2020 Change in 2020 Ending
Fund Balance Fund Balance Fund Balance Fund Balance Fund Balance Fund Balance
500 - ERR Fleet Replacement 790,920 (76,804) 785,645 115,151 (74,154) 1,540,758
510 - ERR Fleet O&M - - - 44,516 (16,532) 27,984
520 - ERR I.T. O&M - - - 3,162 (3,162) -
525 - ERR I.T. Replacement - - - - - -
Total 790,920 (76,804) 785,645 162,829 (93,848) 1,568,742
** The Equipment Rental & Replacement Fund as a whole was re-established in 2019 and broken into four Internal Service Funds.
EQUIPMENT RENTAL & REPLACEMENT FUND
BUDGET SUMMARY
ERR
(Internal Service Fund)
City of Port Townsend
2020 Budget Section 3 (Updated 11/18/19) - Page 27 of 30
2017 2018 2019 2019 2020 Increase/Decrease
Actual Actual Adopted Supplemental Proposed 2020 Proposed vs
2019 Adopted
Beginning Fund Balance 175,381 210,780 159,548 159,548 52,289
Revenues
Charges for Goods & Services 1,003,706 955,679 892,500 807,457 825,000 -7.6%
Miscellaneous Revenue 847 2,119 1,500 1,750 1,200 -20.0%
Operating Transfers In 157 - - - -
Total Revenue 1,004,710 957,798 894,000 809,207 826,200 -7.6%
Expenditures
Salaries & Wages 572,227 583,739 517,716 495,546 435,834 -15.8%
Personnel Benefits 260,639 259,432 239,452 216,644 190,977 -20.2%
Supplies 5,859 8,772 6,000 6,000 5,000 -16.7%
Professional Services 875 - 10,000 10,000 10,000 0.0%
Communications 8,619 8,685 8,700 8,500 8,000 -8.0%
Advertising 115 48 600 600 500 -16.7%
Operating Rents & Leases - - - - -
Intergovernemental Services - - - - -
Machinery & Equipment 18,652 18,619 41,600 29,600 6,500 -84.4%
Repairs & Software Maintenance - - 1,000 - 13,000 1200.0%
Equipment Rental 12,463 34,801 30,420 30,420 29,061 -4.5%
Training/Memberships & Travel 5,150 6,630 19,600 10,934 11,000 -43.9%
Miscellaneous 1,537 4,092 2,000 3,000 3,000 50.0%
Overhead Allocation 83,175 84,211 105,222 105,222 106,531 1.2%
Transfers Out - - - - -
Total Expenditure 969,311 1,009,030 982,310 916,466 819,403 -16.6%
Net Change in Fund Balance 35,400 (51,232) (88,310) (107,259) 6,797 107.7%
Ending Fund Balance 210,780 159,548 71,238 52,289 59,086
Sufficient to Meet Obligations Meets Policy
ENGINEERING FUND
BUDGET SUMMARY
Engineering
Internal Service Fund
City of Port Townsend
2020 Budget Section 3 (Updated 11/18/19) - Page 28 of 30
2017 2018 2019 2019 2020 Increase/Decrease
Actual Actual Adopted Supplemental Proposed 2020 Proposed vs
2019 Adopted
Beginning Fund Balance 24,732 24,832 25,078 25,078 25,509
Revenues
Miscellaneous Revenue 100 246 180 431 400 122.2%
Other Financing Sources
Operating Transfers In 30,637 32,835 20,000 1,500 10,000 -50.0%
Total Revenue 30,737 33,081 20,180 1,931 10,400 -48.5%
Expenditures
Personnel Benefits 30,637 32,835 20,000 1,000 10,000 -50.0%
Miscellaneous 500 -
Transfers Out - - - - -
Total Expenditure 30,637 32,835 20,000 1,500 10,000 -50.0%
Net Change in Fund Balance 100 246 180 431 400 122.2%
Ending Fund Balance 24,832 25,078 25,258 25,509 25,909
Sufficient to Meet Obligations Meets Policy
UNEMPLOYMENT RESERVE FUND
BUDGET SUMMARY
Unemployment
Internal Service Fund
City of Port Townsend
2020 Budget Section 3 (Updated 11/18/19) - Page 29 of 30
LEOFF 1 2017 2018 2019 2019 2020 Increase/Decrease
Fiduciary Fund Actual Actual Adopted Supplemental Proposed 2020 Proposed vs
2019 Adopted
Beginning Fund Balance 226,297 231,925 246,382 246,382 258,809
Revenues
Taxes 35,245 34,235 34,235 34,235 34,235 0.0%
Miscellaneous Revenue 943 2,451 1,500 4,371 4,000 166.7%
Other Financing Sources - - -
Operating Transfers In - - - - -
Total Revenue 36,188 36,686 35,735 38,606 38,235 7.0%
Expenditures
Salaries & Wages 11,803 7,165 5,699 4,070 2,803 -50.8%
Personnel Benefits 16,669 13,651 10,000 20,257 25,000 150.0%
Overhead Allocation 2,087 1,414 1,852 1,852 1,224 -33.9%
Transfers Out - - - - -
Total Expenditure 30,559 22,230 17,551 26,179 29,027 65.4%
Net Change in Fund Balance 5,628 14,456 18,184 12,427 9,208 -49.4%
Ending Fund Balance 231,925 246,382 264,566 258,809 268,017
Sufficient to Meet Obligations Meets Policy
FIREMEN'S PENSION FUND
BUDGET SUMMARY
City of Port Townsend
2020 Budget Section 3 (Updated 11/18/19) - Page 30 of 30
CITY OF PORT TOWNSEND, WASHINGTON
CAPITAL IMPROVEMENT PLAN
The six-year Capital Improvement Plan (CIP) includes capital projects for 2020 – 2025.
This plan includes capital projects that add new infrastructure to the City and those that
replace and improve aging City infrastructure. The most significant planned capital
projects included in this plan are:
Complete Streets
The City received $250,000 in grant funding from TIB for improvements to ADA ramps
and sidewalks. The major sidewalk project included with this grant was 9th Street
between Hancock and Grant Street, which has been completed. The remaining ADA
ramp projects will be completed by spring of 2020.
7th Street
This project will connect Rainier Street to Discovery Road serving as a frontage street
for new commercial development. The 2017 bond funded the conceptual design and
the City received a $300,000 grant from the Jefferson County Public Infrastructure
Fund. The remainder of the project costs will need to be funded by the benefitting
properties.
Discovery Road Sidewalk and Bicycle Facility – Rainier to Sheridan
This project is the planning, design and construction of a sidewalk, bicycle pathway on
the south side of Discovery Road from Rainier Street to Sheridan Street, along with
stormwater improvements and crossing improvements. The project is funded by a
$0.43 million Federal Surface Transportation Program (STP) grant, a $1.442 million
grant through WSDOT’s Pedestrian & Bicycle Safety program, and City matching funds.
The second phase, not currently funded, would be to construct similar facilities on the
north side of Discovery along with new pavement, curbs, planter strips, and drainage
from the roundabout to Sheridan Street. A grant application through TIB has been
submitted for the second phase for both design and construction. The City is awaiting
TIB’s grant award announcement which will be in early 2020.
Outfall Replacement
Replacement of the existing sewer outfall is a requirement of the City’s Department of
Ecology wastewater discharge permit. A preliminary design has been completed. The
discussion with the permitting agencies began in 2018, permitting and field work
continued in 2019, with permitting and final design continuing in 2020 and construction
anticipated in 2021. The permitting and predesign are funded by a Department of
Ecology grant and loan. Funding for final design and construction is unsecured,
however, the City applied for a loan through the Department of Ecology and is awaiting
the outcome of the loan application submission.
Budget Section 4 - Page 1 of 34
Gaines Street Pump Station Corrosion Control
This station pumps wastewater from the downtown to the City’s Wastewater Treatment
Plant. This project will repair the deteriorated concrete caused from the natural
corrosive elements of wastewater and place a protective seal coat on the walls to
prevent future corrosion.
CERB Rainier (formerly Howard Street) Street and Regional Stormwater projects
The CERB funding provides for a portion of the stormwater facilities on the Howard
Street Extension project, as well as, funding of a regional stormwater pond and
conveyance system for the runoff from the properties adjacent to Rainier Street from
Discovery Road, south to Sims Way and properties south of Sims Way. The new
system will allow denser development to occur in the commercial district while providing
necessary stormwater detention in an area where stormwater can infiltrate into the soil.
Total CERB loan funding is $1,200,000, of which a portion already funded the
stormwater conveyance system installed during the Howard Street Extension project.
The remaining funds will be used for the design, property acquisition and construction of
the regional facility which is due to be completed by October 2020.
Logan Street Storm Pond
This project is to repair the stormwater pond overflow to prevent further slope erosion.
2019 Completed Projects:
Mountain View Phase III
In 2015 the City voters approved a $3.6 million bond for improvements to the Mountain
View Campus. The first phase of the project – Energy Efficiency and Emergency
Repairs - was completed in 2015 at a cost of $2.2 million. This work included upgrades
to the heating and ventilating systems; replacement of the old diesel fuel boilers with
new, high efficiency propane boilers; new energy efficient lighting; and new roofing and
roof insulation for the classroom building.
The final phase of construction work centered on improvements to the interior and
exterior of the Mountain View Commons including, improved ADA access to the
classroom building and the pool and gym building; fire alarm and emergency lighting
system replacement; improvements to the Food Bank and Working Image leased
spaces; new locker room and bathroom for the Police Department; hallway upgrades
and painting; paving of the police entrance; and painting the building exterior. This final
phase used the remainder of the 2015 Mountain Bond funds as well as an additional
$414,000 Community Development Block Grant (CDBG) received for the Food Bank
and Working Image.
Budget Section 4 - Page 2 of 34
Library Improvements
The Library was programmed in 2017 for roof and window replacements on the Annex
building, replacement of the exterior retaining wall in front of the Pink house, as well as
other miscellaneous repairs to the walkway and stairs at the Lawrence Street Librar y
entrance. The project was funded by the 2017 capital projects bond as well as Library
Foundation donations for the wall repair. All projects have currently been completed
except for window replacements.
Jefferson Street Sidewalk
The City was awarded a Transportation Improvement Board (TIB) grant to install a
sidewalk on Jefferson Street from Taylor Street to Washington Street, to fill in a missing
link that will connect an accessible route from downtown to uptown. The project
provides an alternative to the Haller fountain stairs and the “buggy trail.”
Visitor Center – Sims Way Frontage Improvements
This project added sidewalks, stormwater management, parking and streetscape
enhancements as well as the placement of public art on Sims Way in front of the visitor
center and the Thayer Street intersection. The project was funded by the 2017 Bond.
Other Future Projects
Other projects that have been identified in the Capital Improvement Plan that need to be
addressed over a six-year period include:
• Elevators for Historic City Hall & Library $ 330,000
• Pink House Restorations $ 100,000
• Discovery Road - Sheridan to Rainier $ 6,842,000
• 1MG Re-Coat $ 750,000
• Infiltration/Inflow Removal $ 260,000
• Wastewater Master Plan $ 130,000
• South West Sewer Pump Station $ 4,330,000
• Cliff Street Sewer $ 425,000
• Basin Planning Study $ 50,000
• Stormwater Master Plan Update $ 100,000
• Stormwater Street Improvements $ 335,000
The projects listed above that are included in the 6-year Capital Improvement Plan are
still in the initial review stage. As design and construction details are developed, costs
will be updated, and these projects will be prioritized based on the greatest need and
available funding. Most of these projects do not have a funding source at this time but
have been identified as City priorities.
Budget Section 4 - Page 3 of 34
Budget Section 4 - Page 4 of 34
Ordinance 3239
Page 1 of 2
Ordinance No. 3239
AN ORDINANCE OF THE CITY OF PORT TOWNSEND, WASHINGTON,
ADOPTING THE CAPITAL IMPROVEMENT PLAN FOR 2020 THROUGH 2025
WHEREAS, the City of Port Townsend has adopted a Comprehensive Plan and has
amended it in accordance with the requirements of the Growth Management Act (“GMA”)
(Chapter 36.70A of the Revised Code of Washington); and,
WHEREAS, the GMA requires a capital facilities plan as a mandatory element of the
City’s Comprehensive Plan and the City has adopted such a plan, commonly referred to as the
City’s Capital Improvement Plan; and,
WHEREAS, the Capital Improvement Plan provides the six-year capital facility program
for the City, subject to appropriation by the Council of funding for the projects contained in the
Plan; and,
WHEREAS, RCW 36.70A.130 and Section 20.04.030A(7) of the Port Townsend
Municipal Code allow the city to adopt changes to the Capital Improvement Plan concurrently
with the adoption of the city’s budget; and,
WHEREAS, the City Council held a public hearing on November 4, 2019, on the
proposed 2020-2025 Capital Improvement Plan.
NOW THEREFORE, the City Council of the City of Port Townsend do ordain as
follows:
Section 1. Findings and Conclusions. The proposed 2020-2025 Capital Improvement
Plan is consistent with and implements the currently-adopted Capital Facilities and
Utility Elements of the Comprehensive Plan are consistent with RCW 36.70A.070(3) and
the Comprehensive Plan, and are in the public interest.
Section 2. The City adopts the 2020-2025 Capital Improvement Plan as substantially
shown at Exhibit A.
Section 3. Severability. If any sentence, clause or phrase of this Ordinance should be
held to be invalid or unconstitutional by a court of competent jurisdiction, such invalidity
or unconstitutionality shall not affect the validity or constitutionality of any other section,
sentence, clause, or phrase or work of this ordinance.
Section 4. Transmittal to Department of Commerce. The City Clerk shall transmit a copy
of this Ordinance to the State Department of Commerce (DOC) within ten (10) days of
adoption of this ordinance.
Budget Section 4 - Page 5 of 34
Ordinance 3239
Page 2 of 2
Section 5. Effective Date. This Ordinance shall take effect and be in force 5 days
following its publication in the manner provided by law.
ADOPTED by the City Council of the City of Port Townsend, Washington, at a regular
meeting thereof, held this 18th day of November 2019.
_________________________
Deborah S. Stinson
Mayor
Attest: Approved as to Form:
___________________________ _________________________
Joanna Sanders, MMC Heidi Greenwood
City Clerk City Attorney
Budget Section 4 - Page 6 of 34
Capital Improvement Plan 2020 - 2025
General Government
* This plan shows the 6-year plan for capital projects.
2020 2020 2020 2021 2022 2023 2024 2025 6-Year Total
Project Preliminary Supplemental 1 Revised
Elevators (City Hall & Library)
Funding Sources
-
Unsecured Funds 165,000 165,000 330,000
Total - - - 165,000 165,000 - 330,000
Expenditures
Design/Construction 165,000 165,000 330,000
Project Management -
-
Total - - - 165,000 165,000 - 330,000
Pink House Restorations
Funding Sources
-
Unsecured Funds 100,000 100,000
Total - - - 100,000 - - - - 100,000
Expenditures
Design/Construction 100,000 100,000
Project Management -
Total - - - 100,000 - - 100,000
Funding Sources
-
-
-
Total - - - - - - -
Expenditures
Design/Construction - -
Project Management -
-
Total - - - - - - -
10/22/2019
Ordinance 3239 Exhibit A
Page 1 of 11
Budget Section 4 - Page 7 of 34
Capital Improvement Plan 2020 - 2025
Street
* This plan shows the 6-year plan for capital projects.
2020 2020 2020 2021 2022 2023 2024 2025 6-Year Total
Project Preliminary Supplemental 1 Revised
1058 Howard St (Rainier St)
Funding Sources
WSDOT -
TIB -
CERB 300,000 300,000
-
Total 300,000 - - - - - - - 300,000
Expenditures
Line of Credit (LOC)300,000 300,000
Interest on LOC -
Project Management -
Total 300,000 - - - - - - - 300,000
1009 Complete Sts (TIB)
Funding Sources
Note: $250,000 Grant Funds received in 2017
-
TIB -
REET 40,000 40,000
Total 40,000 - - - - - 40,000
Expenditures
Design -
Construction 30,000 30,000
Project Management 10,000 10,000
Total 40,000 - - - - - - - 40,000
1047 7th St Design Rainier to Discovery Rd
Funding Sources
PIF Grant 300,000 300,000
2017 Bond -
Unsecured Funds 600,000 600,000
Total 300,000 - - 600,000 - - - - 900,000
Expenditures
Design 260,000 260,000
Construction 500,000 500,000
Project Management 40,000 100,000 140,000
Total 300,000 - - 600,000 - - - - 900,000
10/22/2019
Ordinance 3239 Exhibit A
Page 2 of 11
Budget Section 4 - Page 8 of 34
Capital Improvement Plan 2020 - 2025
Street
* This plan shows the 6-year plan for capital projects.
2020 2020 2020 2021 2022 2023 2024 2025 6-Year Total
Project Preliminary Supplemental 1 Revised
1208 Discovery Road Pedestrian and Bicycle Facilities Rainier to Sheridan
Funding Sources
WSDOT - STP Funds 217,000 217,000
Line of Credit 210,000 210,000
WSDOT - Bike/Ped Grant 1,442,000 1,442,000
Total 1,869,000 - - - - - - - 1,869,000
Expenditures
Design 257,000 257,000
Construction 1,312,000 1,312,000
Project Management 300,000 300,000
Total 1,869,000 - - - - - - - 1,869,000
Discovery Road Improvements Rainier to Sheridan
Funding Sources
-
TIB (unsecured)5,500,000 5,500,000
Unsecured Funds 1,342,000 1,342,000
Total - - - - 6,842,000 - - - 6,842,000
Expenditures
Design 971,500 971,500
Construction 4,975,000 4,975,000
Project Management 895,500 895,500
Total - - - - 6,842,000 - - - 6,842,000
Sidewalk Project - ADA
Funding Sources
Unsecured Funds 50,000 50,000 50,000 50,000 50,000 250,000
-
Total - - - 50,000 50,000 50,000 50,000 50,000 250,000
Expenditures
Design -
Construction 50,000 50,000 50,000 50,000 50,000 250,000
Project Management -
Total - - - 50,000 50,000 50,000 50,000 50,000 250,000
10/22/2019
Ordinance 3239 Exhibit A
Page 3 of 11
Budget Section 4 - Page 9 of 34
Capital Improvement Plan 2020 - 2025
Water
* This plan shows the 6-year plan for capital projects.
2020 2020 2020 2021 2022 2023 2024 2025 6-Year Total
Project Preliminary Supplemental 1 Revised
6000 Water General
Funding Sources
-
Operating Transfer -
SDC 220,000 220,000 220,000 220,000 220,000 220,000 1,320,000
Total 220,000 - - 220,000 220,000 220,000 220,000 220,000 1,320,000
Expenditures
-
Design/Construction 150,000 150,000 150,000 150,000 150,000 150,000 900,000
Project Management 70,000 70,000 70,000 70,000 70,000 70,000 420,000
Total 220,000 - - 220,000 220,000 220,000 220,000 220,000 1,320,000
6033 Discovery Road Rainer to Sheridan
Funding Sources
Operating Transfer 80,000 80,000
SDC 20,000 20,000
Total 100,000 - - - - - 100,000
Expenditures
-
Design/Construction 80,000 80,000
Project Management 20,000 20,000
Total 100,000 - - - - - - - 100,000
1MG - Re-Coat
Funding Sources
Unsecured Funds 750,000 750,000
-
Total - - - - 750,000 - - - 750,000
Expenditures
-
Design/Construction 720,000 720,000
Project Management 30,000 30,000
Total - - - - 750,000 - - - 750,000
10/22/2019
Ordinance 3239 Exhibit A
Page 4 of 11
Budget Section 4 - Page 10 of 34
Capital Improvement Plan 2020 - 2025
Sewer
* This plan shows the 6-year plan for capital projects.
2020 2020 2020 2021 2022 2023 2024 2025 6-Year Total
Project Preliminary Supplemental 1 Revised
7001 Collection System Improvements
Funding Sources
Operating Transfer 40,000 40,000 40,000 40,000 40,000 40,000 240,000
Sewer Capital Surcharge 120,000 120,000 120,000 120,000 120,000 120,000 720,000
Total 160,000 - - 160,000 160,000 160,000 160,000 160,000 960,000
Expenditures
Design/Construction 100,000 100,000 100,000 100,000 100,000 100,000 600,000
Project Management 60,000 60,000 60,000 60,000 60,000 60,000 360,000
Total 160,000 - - 160,000 160,000 160,000 160,000 160,000 960,000
7013 Outfall Replacement
Infrastructure Condition
Funding Sources
CCWF Loan/Grant 100,000 100,000
SDC 75,000 75,000
Unsecured Funds 4,000,000 4,000,000
Total 175,000 - - 4,000,000 - - - - 4,175,000
Expenditures
Design/Construction 145,000 3,700,000 3,845,000
Project Management 30,000 300,000 330,000
-
Total 175,000 - - 4,000,000 - - - - 4,175,000
7026 Gaines Street Pump Station
Infrastructure Condition Mandate (Vulnerability)
Funding Sources
Sewer Capital Surcharge 80,000 80,000
SDC 100,000
Unsecured Funds 465,000 465,000
Total 180,000 - - - - 465,000 - - 645,000
Expenditures
Design/Construction 140,000 400,000 540,000
Project Management 40,000 65,000 105,000
-
Total 180,000 - - - - 465,000 - - 645,000
10/22/2019
Ordinance 3239 Exhibit A
Page 5 of 11
Budget Section 4 - Page 11 of 34
Capital Improvement Plan 2020 - 2025
Sewer
* This plan shows the 6-year plan for capital projects.
2020 2020 2020 2021 2022 2023 2024 2025 6-Year Total
Project Preliminary Supplemental 1 Revised
Infiltration/Inflow Removal
Desirable Investment in System
Funding Sources
-
Sewer Capital Surcharge 260,000 260,000
Total - - - 260,000 - - - - 260,000
Expenditures
Design/Construction 200,000 200,000
Project Management 60,000 60,000
-
Total - - - 260,000 - - - - 260,000
Wastewater Master Plan/WWTP
Funding Sources
-
Sewer Capital Surcharge 130,000 130,000
Total - - - - 130,000 - - - 130,000
Expenditures
Design/Construction 30,000 30,000
Project Management 100,000 100,000
-
Total - - - - 130,000 - - - 130,000
South West Sewer Pump Station
Contributes to Economic Development
Funding Sources
Unsecured Funds 4,330,000 4,330,000
-
Total - - - - - - - 4,330,000 4,330,000
Expenditures
Design/Construction 4,000,000 4,000,000
Project Management 330,000 330,000
-
Total - - - - - - - 4,330,000 4,330,000
10/22/2019
Ordinance 3239 Exhibit A
Page 6 of 11
Budget Section 4 - Page 12 of 34
Capital Improvement Plan 2020 - 2025
Sewer
* This plan shows the 6-year plan for capital projects.
2020 2020 2020 2021 2022 2023 2024 2025 6-Year Total
Project Preliminary Supplemental 1 Revised
Cliff Street Sewer
Funding Sources
Unsecured Funds 425,000 425,000
-
Total - - - - - - - 425,000 425,000
Expenditures
Design/Construction 375,000 375,000
Project Management 50,000 50,000
-
Total - - - - - - - 425,000 425,000
Funding Sources
Unsecured Funds -
Total - - - - - - - - -
Expenditures
Design/Construction -
Project Management -
-
Total - - - - - - - - -
Funding Sources
-
Total - - - - - - - - -
Expenditures
Design/Construction -
Project Management -
-
Total - - - - - - - - -
10/22/2019
Ordinance 3239 Exhibit A
Page 7 of 11
Budget Section 4 - Page 13 of 34
Capital Improvement Plan 2020 - 2025
Storm
* This plan shows the 6-year plan for capital projects.
2020 2020 2020 2021 2022 2023 2024 2025 6-Year Total
Project Preliminary Supplemental 1 Revised
8000 Stormwater System Improvements
Funding Sources
Operating Transfer 50,000 50,000 150,000 50,000 50,000 50,000 400,000
- -
Total 50,000 - 50,000 150,000 50,000 50,000 50,000 400,000
Expenditures
Design/Construction 40,000 120,000 40,000 40,000 40,000 280,000
Project Management 50,000 10,000 30,000 10,000 10,000 10,000 120,000
-
Total 50,000 - - 50,000 150,000 50,000 50,000 50,000 400,000
8028 CERB Regional Facility
Funding Sources
CERB 560,000 560,000
Operating Transfer -
Total 560,000 - - - - - - - 560,000
Expenditures
Design/Construction 475,000 475,000
Project Management 85,000 85,000
-
Total 560,000 - - - - - - - 560,000
8022 Logan Street
Funding Sources
Operating Transfer 50,000 - 50,000
Total 50,000 - - - - - - - 50,000
Expenditures
Design/Construction 40,000 40,000
Project Management 10,000 10,000
-
Total 50,000 - - - - - - - 50,000
10/22/2019
Ordinance 3239 Exhibit A
Page 8 of 11
Budget Section 4 - Page 14 of 34
Capital Improvement Plan 2020 - 2025
Storm
* This plan shows the 6-year plan for capital projects.
2020 2020 2020 2021 2022 2023 2024 2025 6-Year Total
Project Preliminary Supplemental 1 Revised
8017 Discovery Road Rainier to Sheridan
Funding Sources
Operating Transfer 50,000 250,000 300,000
Unsecured Funds -
Total 50,000 - - 250,000 - - - - 300,000
Expenditures
Design/Construction - 240,000 240,000
Project Management 50,000 10,000 60,000
-
Total 50,000 - 250,000 - - - - 300,000
Basin Planning Studies
Funding Sources
Operating Transfer 50,000 50,000
Total - - - - 50,000 - - - 50,000
Expenditures
Design/Construction 25,000 25,000
Project Management 25,000 25,000
-
Total - - - - 50,000 - - - 50,000
Stormwater Management Plan Update
Funding Sources
Operating Transfer 100,000 100,000
Total - - - - - - 100,000 - 100,000
Expenditures
Design/Construction 75,000 75,000
Project Management 25,000 25,000
-
Total - - - - - - 100,000 - 100,000
10/22/2019
Ordinance 3239 Exhibit A
Page 9 of 11
Budget Section 4 - Page 15 of 34
Capital Improvement Plan 2020 - 2025
Storm
* This plan shows the 6-year plan for capital projects.
2020 2020 2020 2021 2022 2023 2024 2025 6-Year Total
Project Preliminary Supplemental 1 Revised
16th St - Sheridan to Landes
Funding Sources
Operating Transfer 60,000 150,000 210,000
Total - - - - 60,000 150,000 - - 210,000
Expenditures
Design/Construction 40,000 110,000 150,000
Project Management 20,000 40,000 60,000
-
Total - - - - 60,000 150,000 - - 210,000
Center St - San Juan Ave to Olympic Ave
Funding Sources
Operating Transfer 125,000 125,000
Total - - - - - - - 125,000 125,000
Expenditures
Design/Construction 85,000 85,000
Project Management 40,000 40,000
-
Total - - - - - - - 125,000 125,000
Funding Sources
Operating Transfer -
Total - - - - - - - - -
Expenditures
Design/Construction -
Project Management -
-
Total - - - - - - - - -
10/22/2019
Ordinance 3239 Exhibit A
Page 10 of 11
Budget Section 4 - Page 16 of 34
Capital Improvement Plan 2020 - 2025
City-Wide
* This plan shows the 6-year plan for capital projects.
2020 2020 2020 2021 2022 2023 2024 2025 6-Year Total
General Government
Funding Sources
Preliminary Supplemental 1 Revised
CDBG - - - - - - - - -
Donations - - - - - - - - -
Voted Bond - - - - - - - - -
2017 Bond - - - - - - - - -
Unsecured Funds - - - 265,000 165,000 - - - 430,000
Total - - 265,000 165,000 - - - 430,000 -
Expenditures
Design/Construction - - - 265,000 165,000 - - - 430,000
Project Management - - - - - - - - - -
Total - - 265,000 165,000 - - - 430,000 -
Street
Funding Sources
WSDOT - STP funds 217,000 - - - - - - - 217,000
WSDOT - Bike/Ped Grant 1,442,000 - - - - - - - 1,442,000
PIF Grant 300,000 - - - - - - - 300,000
2017 Bond - - - - - - - - -
CERB 300,000 - - - - - - - 300,000
REET 40,000 - - - - - - - 40,000
Fund Balance - - - - - - - - -
Line of Credit 210,000 - - - - - - - 210,000
TIB (unsecured)- - - - 5,500,000 - - - 5,500,000
Unsecured Funds - - - 650,000 1,392,000 50,000 50,000 50,000 2,192,000
Total 2,509,000 - - 650,000 6,892,000 50,000 50,000 50,000 10,201,000 -
Expenditures
ROW - - - - - - - - -
Line of Credit (LOC)300,000 - - - - - - - 300,000
Interest on LOC - - - - - - - - -
Design 517,000 - - - 971,500 - - - 1,488,500
Construction 1,342,000 - - 550,000 5,025,000 50,000 50,000 50,000 7,067,000
Project Management 350,000 - - 100,000 895,500 - - - 1,345,500
2,509,000 - - 650,000 6,892,000 50,000 50,000 50,000 10,201,000 -
Water
Funding Sources
Capital Surcharge - - - - - - - - -
DWSRF - - - - - - - - -
PWTF - - - - - - - - -
Operating Transfer 80,000 - - - - - - - 80,000
SDC 240,000 - - 220,000 220,000 220,000 220,000 220,000 1,340,000
OGWS - - - - - - - - -
Unsecured Funds - - - - 750,000 - - - 750,000
Total 320,000 - - 220,000 970,000 220,000 220,000 220,000 2,170,000 -
Expenditures
Design/Construction 230,000 - - 150,000 870,000 150,000 150,000 150,000 1,700,000
Project Management 90,000 - - 70,000 100,000 70,000 70,000 70,000 470,000
Interest on LOC - - - - - - - - -
Total 320,000 - - 220,000 970,000 220,000 220,000 220,000 2,170,000 -
Sewer
Funding Sources
Sewer Capital Surcharge 200,000 - - 380,000 250,000 120,000 120,000 120,000 1,190,000
SDC 175,000 - - - - - - - 175,000
CCWF Loan/Grant 100,000 - - - - - - - 100,000
Operating Transfer 40,000 - - 40,000 40,000 40,000 40,000 40,000 240,000
LTAC - - - - - - - - -
Unsecured Funds - - - 4,000,000 - 465,000 - 4,755,000 9,220,000
Total 515,000 - 4,420,000 290,000 625,000 160,000 4,915,000 10,925,000
Expenditures
Design/Construction 385,000 - - 4,000,000 130,000 500,000 100,000 4,475,000 9,590,000
Project Management 130,000 - - 420,000 160,000 125,000 60,000 440,000 1,335,000
Total 515,000 - 4,420,000 290,000 625,000 160,000 4,915,000 10,925,000 -
Storm
Funding Sources
CERB 560,000 - - - - - - - 560,000
Storm Fund - - - - - - - - -
Operating Transfer 150,000 - - 300,000 260,000 200,000 150,000 175,000 1,235,000
Line of Credit - - - - - - - - -
Unsecured Funds - - - - - - - - -
Total 710,000 - - 300,000 260,000 200,000 150,000 175,000 1,795,000 -
Expenditures
Design/Construction 515,000 - - 280,000 185,000 150,000 115,000 125,000 1,370,000
Project Management 195,000 - - 20,000 75,000 50,000 35,000 50,000 425,000
710,000 - 300,000 260,000 200,000 150,000 175,000 1,795,000
10/22/2019
Ordinance 3239 Exhibit A
Page 11 of 11
Budget Section 4 - Page 17 of 34
Budget Section 4 - Page 18 of 34
Resolution 19-056
RESOLUTION NO. 19-056
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PORT TOWNSEND,
WASHINGTON, APPROVING THE 2020-2025 SIX-YEAR TRANSPORTATION
IMPROVEMENT PROGRAM AND AUTHORIZING THE CITY MANAGER TO
SUBMIT THIS TO THE STATE
WHEREAS, the City Council has reviewed the 2020-2025 Six-Year Transportation
Improvement Program (TIP) and held a public hearing on June 17, 2019 for public comment;
and,
WHEREAS,the City is required by the State of Washington Department of
Transportation (WSDOT) to adopt its annual six-year Transportation Improvement Program
TIP)by June 30 of each year; and,
WHEREAS, the TIP is primarily intended to designate federally funded and regionally
significant projects; and,
WHEREAS,the City Council has established priorities for transportation improvement
projects and these are reflected in the TIP;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Port
Townsend that the Mayor is hereby authorized to sign this resolution approving the Six-Year
Transportation Improvement Program for 2020-2025 for submission to the State Department of
Transportation for their State Transportation Improvement Program (STIP).
And that the City Manager may make minor modifications to the TIP for the next 12
months to reflect changes in project funding or implementation schedules that may more closely
align with actual project progress and to meet the needs of WSDOT and the STIP.
ADOPTED by the City Council of the City of Port Townsend at a regular meeting
thereof, held this 17th day of June 2019.
AA S § 'so .
Mayor
Attest: Approved as to form:
Joanna Sanders, MMC cidi -;reenwoo I
City Clerk City Attorney
Budget Section 4 - Page 19 of 34
Budget Section 4 - Page 20 of 34
Six Year Transportation Improvement Program (2020 - 2025)County Name Jefferson County
Port Townsend MPO/RTPO:NON/PEN
Co. No.:16
City No.:1005
Fund Source Information Expenditure Schedule
Fu
n
c
t
i
o
n
a
l
C
l
a
s
s
Pr
i
o
r
i
t
y
N
u
m
b
e
r
Project Pr
o
j
e
c
t
L
e
n
g
t
h
Ph
a
s
e
Ph
a
s
e
S
t
a
r
t
Y
e
a
r
Fu
n
d
i
n
g
S
t
a
t
u
s
Federal
Fund
Code
Federal
Funds
State Fund
Code State Funds Local Funds 1st 2nd 3rd 4th 5th 6th En
v
i
r
o
n
m
e
n
t
T
y
p
e
RW
R
e
q
u
i
r
e
d
16 Discovery Road (Two-Way Cycletrack & Sidewalks)0.74 PE 2020 S STP 260,000 Ped/Bike Program 20,000 44,000 324,000 CE Y
from: Rainier Street to: Sheridan Street RW 2020 S 38,000 23,120 20,000 81,120
Two-way cycletrack, sidewalks, curb ramps, pedestrian
activated flasing beacons, dashed green bike lane intersection
markings
CN 2020 S 112,674 1,302,962 186,000 1,300,000 301,636
16 Discovery Road I 0.82 PE 2025 P OTHER 770,000 770,000 CE Y
from: Rainier Street to: Sheridan Street CN 2025 P OTHER 7,580,000 7,580,000
Rebuild roadway, sidewalks, drainage, shoulder improvements,
bike lanes
14 Washington Street 0.30 PE 2024 P 350,000 350,000 CE N
from: Monroe Street to: Taylor Street CN 2025 P 2,000,000 2,000,000
Streetscape improvements; new curb, gutter, pavement,
sidewalk repair and replacement
14 Sims Way Improvements III 1.60 PE 2025 P WSDOT 600,000 600,000 CE N
from: Sheridan Street to: SR 20 Ferry Terminal CN 2025 P WSDOT 6,000,000 6,000,000
Turn lanes, shoulder improvements, intersection
improvements, bike lanes, transit pullouts, sidewalks,
mitigation of ferry traffic impacts
14 Sims Way Improvements II 0.20 PE 2024 P WSDOT 600,000 600,000 CE N
from: Logan Street to: Sheridan Street CN 2025 P WSDOT 5,000,000 5,000,000
Intersection improvements; shoulder improvements; drainage;
transit pullouts; sidewalks; pedestrian crossings; stormwater
treatment
16 SR 20 Pedestrian Walkway 0.14 ALL 2025 P WSDOT 1,200,000 1,200,000 CE Y
from: Logan Street to: Hancock Street
Construction of an elevated walkway over a ravine that is an
800' gap along a popular, heavily used route by both
pedestrians and bicyclists.
14 Sims Way (SR 20) Intersection Improvements 0.10 ALL 2025 P WSDOT 2,500,000 2,500,000 CE N
from: Kearney Street to: Washington Street
Intersection improvements
16 Discovery Road II 0.74 PE 2025 P OTHER 300,000 200,000 500,000 CE N
from: City Limits to: Howard Street CN 2025 P OTHER 3,000,000 300,000 3,300,000
Rebuild roadway, bike lanes, sidewalks, pathway, transit
pullouts, drainage, intersection improvements
16 San Juan Improvements II 0.75 ALL 2025 P 1,700,000 1,700,000 CE N
from: Lopez & San Juan to: 49th & Jackman
Grind and install new road surface. Replace utility lines.
Sidewalk and bike lanes.
1
2
3
4
5
7
8
9
6
Budget Section 4 - Page 21 of 34
Six Year Transportation Improvement Program (2020 - 2025)County Name Jefferson County
Port Townsend MPO/RTPO:NON/PEN
Co. No.:16
City No.:1005
Fund Source Information Expenditure Schedule
Fu
n
c
t
i
o
n
a
l
C
l
a
s
s
Pr
i
o
r
i
t
y
N
u
m
b
e
r
Project Pr
o
j
e
c
t
L
e
n
g
t
h
Ph
a
s
e
Ph
a
s
e
S
t
a
r
t
Y
e
a
r
Fu
n
d
i
n
g
S
t
a
t
u
s
Federal
Fund
Code
Federal
Funds
State Fund
Code State Funds Local Funds 1st 2nd 3rd 4th 5th 6th En
v
i
r
o
n
m
e
n
t
T
y
p
e
RW
R
e
q
u
i
r
e
d
16 Hastings Avenue Improvements 1.60 ALL 2020 P 3,500,000 3,500,000 CE N
from: Discovery Road to: City Limits
Shoulder widening, bike lanes, pavement overlay, drainage
improvements, sidewalks or multi use pathway
16 Lawrence Street Improvements 0.50 ALL 2025 P 1,000,000 1,000,000 CE N
from: Kearney Street to: Harrison Street
Grind, base upgrade, repave, sidewalks, shoulder
improvements
16 Jackson / Walnut Improvements 0.45 ALL 2025 P 700,000 700,000 CE N
from: Reed Street to: W Street
Shoulder improvements, overlay, drainage improvements,
sidewalks
16 Howard Street / Rainier Street Extension II 0.60 PE 2025 P OTHER 200,000 500,000 700,000 CE N
from: Discovery Road to: 20th Street CN 2025 P OTHER 2,000,000 4,000,000 6,000,000
New street extension
14 Mill Road Intersection 0.03 ALL 2025 P WSDOT 10,000,000 10,000,000 CE Y
from: SR 20 to: Discovery Road
Intersection improvements
16 Admiralty Avenue Improvements 0.17 ALL 2025 P 700,000 700,000 CE N
from: San Juan Avenue to: Fort Worden State Park
Shoulder improvements, sidewalk, bike lanes, drainage
16 Monroe Street Improvements 0.22 ALL 2025 P 1,000,000 1,000,000 CE N
from: Washington Street to: Lawrence Street
Address road settlement, re-do subgrade, repave
16 McPherson Street Improvements 0.57 ALL 2025 P 1,780,000 1,780,000 CE N
from: Sims Way SR 20 to: Discovery Road
Roadway rebuild, sidewalks, bike lanes
16 Blaine Street Improvements 0.50 ALL 2025 P 500,000 500,000 CE N
from: Walker Street to: Tyler Street
Sidewalk, shoulder improvements, drainage, curb and gutter
00 Non-Motorized Multi Modal Loop Trail 1.94 ALL 2025 P OTHER 500,000 200,000 700,000 CE N
from: Kearney Street to: Discovery Rd
Loop trail as identified in Non-Motorized Transportation Plan
10
13
9
11
12
14
15
16
17
18
19
Budget Section 4 - Page 22 of 34
Six Year Transportation Improvement Program (2020 - 2025)County Name Jefferson County
Port Townsend MPO/RTPO:NON/PEN
Co. No.:16
City No.:1005
Fund Source Information Expenditure Schedule
Fu
n
c
t
i
o
n
a
l
C
l
a
s
s
Pr
i
o
r
i
t
y
N
u
m
b
e
r
Project Pr
o
j
e
c
t
L
e
n
g
t
h
Ph
a
s
e
Ph
a
s
e
S
t
a
r
t
Y
e
a
r
Fu
n
d
i
n
g
S
t
a
t
u
s
Federal
Fund
Code
Federal
Funds
State Fund
Code State Funds Local Funds 1st 2nd 3rd 4th 5th 6th En
v
i
r
o
n
m
e
n
t
T
y
p
e
RW
R
e
q
u
i
r
e
d
19 10th Street 0.33 ALL 2025 P 600,000 600,000 CE N
from: SR 20 to: Sheridan
Sidewalks, bike lanes, drainage, shoulders
17 9th Street 0.40 ALL 2025 P 700,000 700,000 CE N
from: McPherson to: Sheridan
Sidewalks, bike lanes
19
20
21
Budget Section 4 - Page 23 of 34
Six Year Transportation Improvement Program (2020 - 2025)County Name Jefferson County
Port Townsend MPO/RTPO:NON/PEN
Co. No.:16
City No.:1005
Fund Source Information Expenditure Schedule
Fu
n
c
t
i
o
n
a
l
C
l
a
s
s
Pr
i
o
r
i
t
y
N
u
m
b
e
r
Project Pr
o
j
e
c
t
L
e
n
g
t
h
Ph
a
s
e
Ph
a
s
e
S
t
a
r
t
Y
e
a
r
Fu
n
d
i
n
g
S
t
a
t
u
s
Federal
Fund
Code
Federal
Funds
State Fund
Code State Funds Local Funds 1st 2nd 3rd 4th 5th 6th En
v
i
r
o
n
m
e
n
t
T
y
p
e
RW
R
e
q
u
i
r
e
d
16 12th Street 0.38 ALL 2025 P 700,000 700,000 CE N
from: Landes to: Sheridan
Sidewalks, shoulders, drainage improvements
16 Cherry / Redwood Improvements 0.80 ALL 2025 P 1,000,000 1,000,000 CE N
from: F St to: W St
Shoulder improvements, overlay, drainage improvements
16 Discovery Road Improvements III 0.70 PE 2025 P TIB 350,000 50,000 400,000 CE N
from: Hastings Avenue to: 19th Street CN 2025 P OTHER 1,600,000 1,600,000
Rebuild roadway, shoulder improvements, bike lanes,
sidewalks, drainage, intersection improvements
16 49th Street / Cook Ave Improvements 2.00 ALL 2025 P 1,200,000 1,200,000 CE N
from: Jackman Avenue to: City Limits
Shoulder widening, drainage improvements, pavement
overlay, bike and pedestrian accommodations
16 W Street Improvements 0.70 ALL 2025 P 800,000 800,000 CE N
from: Walnut Street to: Admiralty Avenue
Shoulder widening, overlay, drainage improvements, sidewalks
16 Lawrence 0.46 ALL 2025 P 500,000 500000 CE N
from: Monroe to: Harrison
Road rebuild (roadway, drainage, sidewalks, bikeways)
16 Washington II 0.11 ALL 2025 P 500,000 500000 CE N
from: Harrison to: Pierce
Road rebuild
16 Monroe 0.30 ALL 2025 P 500,000 500000 CE N
from: Roosevelt to: Reed
Road rebuild
16 Sheridan Street 0.25 ALL 2025 P 700,000 700000 CE N
from: 10th St to: 15th St
Sidewalks, bike lanes, road rebuild.
25
22
23
24
26
27
28
29
30
Budget Section 4 - Page 24 of 34
Complete Streets
Project Description:
Service Impact:
Improve pedestrian accessibility.
Project
Estimate
Prior
Years Actual
2019
Adopted
Budget
2019
YTD Actual
2019
Projected
2020
Projected
2021
Projected
2022
Projected
2023
Projected
2024
Projected
2025
Projected
Total Project
Revenues
TIB Grant 250,000 250,000 250,000
REET 30,000 3,000 40,000 43,000
Funds needed 40,000 -
Total Project Revenues 280,000 253,000 40,000 40,000 293,000
Expenditures
Planning/Preliminary Engineering
Design 20,000 3,004 15,000 1,280 15,000 18,004
Permitting
Construction 230,000 8 230,000 190,000 30,000 220,008
Construction Engineering
Project Management 30,000 4,063 40,000 42,847 40,000 10,000 54,063
Miscellaneous
Construction Contingency
Total Project Expenditures 280,000 7,074 285,000 44,127 245,000 40,000 292,074
Estimated Impact on Future Operating Budgets
2019
Current Budget
2019
YTD
2019
Projected
2020
Projected
2021
Projected
2022
Projected
2023
Projected
2024
Projected
2025
Projected
Operating
Debt 40,000 -
Total Impact 40,000 - - - - - - - - -
Notes:
The City received a TIB Grant for sidewalk, ADA and miscellaneous complete streets improvements. The
projects include ADA ramps on Washington Street at Quincy Street,an ADA ramp at the Post Office, and a
new sidewalk on 9th Street between Hancock Street and Grant Street in the Hospital District.
The 9th Street sidewalk has been completed. The remaining ADA curb ramps will be constructed towards the end of 2019 and the first part of
2020. This project will require a city match of approximately $40,000, which will come from REET.
Actuals thru 9/30/19 Budget Section 4 - Page 25 of 34
7th Street Design
Project Description:
Service Impact:
Project
Estimate
Prior
Years Actual
2019
Adopted
Budget
2019
YTD Actual
2019
Projected
2020
Projected
2021
Projected
2022
Projected
2023
Projected
2024
Projected
2025
Projected
Total Project
Revenues
2017 Bond 30,000 24,564 5,500 2,415 5,500 30,064
REET
PIF Grant 300,000 300,000 300,000
Funds needed 600,000 600,000 600,000
Total Project Revenues 930,000 24,564 5,500 2,415 5,500 300,000 600,000 930,064
Expenditures
Planning/Preliminary Engineering
Design 143,000 22,780 166,000 188,780
Permitting 18,000 18,000 18,000
Right-of-Way 76,000 76,000 76,000
Construction 388,000 388,000 388,000
Construction Engineering 47,000 47,000 47,000
Project Management 132,000 1,784 5,500 2,415 5,500 40,000 100,000 147,284
Miscellaneous 35,000
Construction Contingency 91,000 65,000 65,000
Total Project Expenditures 930,000 24,564 5,500 2,415 5,500 300,000 600,000 930,064
Estimated Impact on Future Operating Budgets 2019
Current Budget
2019
YTD
2019
Projected
2020
Projected
2021
Projected
2022
Projected
2023
Projected
2024
Projected
2025
Projected
Operating
Debt 600,000
Total Impact - - - - 600,000 - - - - 600,000
Notes:The 7th Street Project is scheduled to begin the design phase in 2020 with the use of the PIF grant. Construction is anticipated for 2021 and will
need approximately $600,000 in funding to complete this project.
The 7th Street project will connect new Rainier Street with Discovery and will serve as the frontage for new
commercial development along the street. A concept design has been prepared. Partial funding has been
received from the Jefferson County Public Infrastructure Fund (PIF). The remainder of the project cost will
be funded by benefitting properties.
Economic development. Serves adjacent commercial properties.
Actuals thru 9/30/19 Budget Section 4 - Page 26 of 34
Discovery Road Pedestrian and Bicycle Facilities - Rainier to Sheridan
Project Description:
Service Impact:
Project
Estimate
Prior
Years Actual
2019
Adopted
Budget
2019
YTD Actual
2019
Projected
2020
Projected
2021
Projected
2022
Projected
2023
Projected
2024
Projected
2025
Projected
Total Project
Revenues
WSDOT 435,000 435,000 218,000 217,000 435,000
REET
WSDOT - Bike/Ped 1,442,000 1,442,000 1,442,000
Funds needed 250,000 80,000 40,000 210,000 250,000
Total Project Revenues 2,127,000 515,000 258,000 1,869,000 2,127,000
Expenditures
Planning/Preliminary Engineering
Design 250,000 300 208,000 92,000 300,000
Permitting 60,000 60,000 60,000
Right-of-Way 105,000 105,000 105,000
Construction 972,000 972,000 972,000
Construction Engineering 115,000 115,000 115,000
Project Management 250,000 11,630 50,000 300,000 350,000
Miscellaneous 65,000
Construction Contingency 310,000 225,000 225,000
Total Project Expenditures 2,127,000 11,930 258,000 1,869,000 2,127,000
Estimated Impact on Future Operating Budgets 2019
Current Budget
2019
YTD
2019
Projected
2020
Projected
2021
Projected
2022
Projected
2023
Projected
2024
Projected
2025
Projected
Operating
Debt 80,000 40,000 210,000
Total Impact 80,000 - 40,000 210,000 - - - - - 250,000
Notes:Design of this project will start in late 2019 with possible construction in 2020. These two grants require a city match of approximately $250,000,
which will need interim financing until permanent funding is secured.
The project is to construct a bicycle way, sidewalk and curb ramps on the south side of Discovery Road
connnecting the roundabout at Rainier Street to the Salish School and on to Sheridan Street. The project will
also include flashing corssing beacons
Safety improvements for pedestrians and bicyclists.
Actuals thru 9/30/19 Budget Section 4 - Page 27 of 34
Water General - Priority Waterlines
Project Description:
Service Impact:
Project
Estimate
Prior
Years Actual
2019
Adopted
Budget
2019
YTD Actual
2019
Projected
2020
Projected
2021
Projected
2022
Projected
2023
Projected
2024
Projected
2025
Projected
Total Project
Revenues
Water/Sewer Fund 250,000 250,000 116,374 172,500 300,000 220,000 220,000 220,000 220,000 220,000 1,572,500
Water SDC 50,000 50,000 4,097 30,000 20,000 50,000
Funds needed
Total Project Revenues 300,000 300,000 120,471 202,500 320,000 220,000 220,000 220,000 220,000 220,000 1,622,500
Expenditures
Planning/Preliminary Engineering
Design
Permitting
Construction 250,000 250,000 56,010 100,000 230,000 150,000 150,000 150,000 150,000 150,000 1,080,000
Construction Engineering
Project Management 50,000 50,000 64,461 100,000 90,000 70,000 70,000 70,000 70,000 70,000 540,000
Miscellaneous
Construction Contingency
Total Project Expenditures 300,000 300,000 120,471 200,000 320,000 220,000 220,000 220,000 220,000 220,000 1,620,000
Estimated Impact on Future Operating Budgets
2019
Current Budget
2019
YTD
2019
Projected
2020
Projected
2021
Projected
2022
Projected
2023
Projected
2024
Projected
2025
Projected
Operating
Debt
Total Impact - - - - - - - - - -
Notes:$100k of the $320k 2020 budget consist of possible waterline repairs during the Discovery Rd Bike/Ped project.
This project category is for extension and replacement projects for the City's water distribution system.
Current anticipated projects include:•Cherry Street - This property had a City water main running across
the lot that had to be abandoned. A new water main must now be installed around the property to restore
the looping in the water system. This line will be designed and installed in 2020.
Other 2020 Priority Waterline Projects:
• 17th Street
• 52nd Street
Cherry and D Street
Infrastructure preservation and upgrades.
Actuals thru 9/30/19 Budget Section 4 - Page 28 of 34
Collection System Improvements
Project Description:
Service Impact:
Project
Estimate
Prior
Years Actual
2019
Adopted
Budget
2019
YTD Actual
2019
Projected
2020
Projected
2021
Projected
2022
Projected
2023
Projected
2024
Projected
2025
Projected
Total Project
Revenues
Water/Sewer Fund 22,900 22,900 21,827 21,827 40,000 40,000 40,000 40,000 40,000 40,000 261,827
Sewer Capital Surcharge 17,100 17,100 17,100 17,100 120,000 120,000 120,000 120,000 120,000 120,000 737,100
Sewer SDC 50,000 50,000 18,340 50,000 50,000
Funds needed
Total Project Revenues 90,000 90,000 57,267 88,927 160,000 160,000 160,000 160,000 160,000 160,000 1,048,927
Expenditures
Planning/Preliminary Engineering
Design
Permitting
Construction 26,549 6,346 100,000 100,000 100,000 100,000 100,000 100,000 606,346
Construction Engineering
Project Management 90,000 90,000 30,717 82,581 60,000 60,000 60,000 60,000 60,000 60,000 442,581
Miscellaneous
Construction Contingency
Total Project Expenditures 90,000 90,000 57,267 88,927 160,000 160,000 160,000 160,000 160,000 160,000 1,048,927
Estimated Impact on Future Operating Budgets
2019
Current Budget
2019
YTD
2019
Projected
2020
Projected
2021
Projected
2022
Projected
2023
Projected
2024
Projected
2025
Projected
Operating
Debt
Total Impact - - - - - - - - - -
Notes:
This project category is for sewer line extensions, sewer line replacement and maintenance hole installation
that improve the wastewater collection infrastructure. Upcoming priority projects include a two-block
section of the City's main trunk sewer that is undersized and needs replacement. This section limits the
capacity of the sewer trunk line. The project is programmed for design in 2019 and construction in 2020.
System Improvement.
Actuals thru 9/30/19 Budget Section 4 - Page 29 of 34
Sewer Outfall
Project Description:
Service Impact:
Project
Estimate
Prior
Years Actual
2019
Adopted
Budget
2019
YTD Actual
2019
Projected
2020
Projected
2021
Projected
2022
Projected
2023
Projected
2024
Projected
2025
Projected
Total Project
Revenues
ECY Grant/Loan 408,000 2,667 405,000 197,767 305,000 100,000 407,667
Sewer SDC 165,000 65,000 100,000 9,408 25,000 75,000 165,000
Water/Sewer Fund
Funds needed 4,000,000 4,000,000 4,000,000
Total Project Revenues 4,573,000 67,667 505,000 207,175 330,000 175,000 4,000,000 4,572,667
Expenditures
Planning/Preliminary Engineering
Design/Permitting 463,000 116,487 345,000 144,385 200,000 145,000 461,487
Right-of-Way
Construction 2,805,000 2,805,000 2,805,000
Construction Engineering 435,000 435,000 435,000
Project Management 410,000 34,936 75,000 17,624 45,000 30,000 300,000 409,936
Miscellaneous 60,000 60,000 60,000
Construction Contingency 400,000 400,000 400,000
Total Project Expenditures 4,573,000 151,423 420,000 162,009 245,000 175,000 4,000,000 4,571,423
Estimated Impact on Future Operating Budgets 2019
Current Budget
2019
YTD
2019
Projected
2020
Projected
2021
Projected
2022
Projected
2023
Projected
2024
Projected
2025
Projected
Operating
Debt 4,000,000
Total Impact - - - - 4,000,000 - - - - 4,000,000
Notes:The City has applied for funding from the Department of Ecology for design and construction.
This project includes permitting, design and construction to replace the off-shore portion of the existing
wastewater treatment plant outfall system with a new outfall and diffuser. The new outfall will provide
hydraulic capacity for current and future effluent flows, and allowing the system to meet state water quality
standards for discharge to the Strait of Juan De Fuca.
Replacement of aging infrastructure. A secondary benefit of this project is the expanded capacity to
accommodate projected increases in future flows by gravity under varying tide conditions.
Actuals thru 9/30/19 Budget Section 4 - Page 30 of 34
Gaines Street Pump Station Corrosion Control
Project Description:
Service Impact:
Project
Estimate
Prior
Years Actual
2019
Adopted
Budget
2019
YTD Actual
2019
Projected
2020
Projected
2021
Projected
2022
Projected
2023
Projected
2024
Projected
2025
Projected
Total Project
Revenues
Water/Sewer Fund
Sewer SDC 100,000 100,000 - 100,000 100,000
Sewer Capital Surcharge 595,000 130,000 9,505 50,000 80,000 465,000 595,000
Funds needed
Total Project Revenues 695,000 230,000 9,505 50,000 180,000 465,000 695,000
Expenditures
Planning/Preliminary Engineering
Design
Permitting
Construction 590,000 200,000 9,505 50,000 140,000 400,000 590,000
Construction Engineering
Project Management 105,000 30,000 - 40,000 65,000 105,000
Miscellaneous
Construction Contingency
Total Project Expenditures 695,000 230,000 9,505 50,000 180,000 465,000 695,000
Estimated Impact on Future Operating Budgets
2019
Current Budget
2019
YTD
2019
Projected
2020
Projected
2021
Projected
2022
Projected
2023
Projected
2024
Projected
2025
Projected
Operating
Debt
Total Impact - - - - - - - - - -
Notes:
The Gaines Street pump station collects wastewater from the downtown area and pumps itto the trunk sewer
that transmits wastewater to the City's Wastewater treatment plant. The pump station has experienced
degradation due to the corrosive nature of the wastewater. The fix will require removing the pump station
from service, temporary bypass of wastewater, and repairing walls and covering with a protective seal coat.
The pump station also needs shoreline stabilization and armoring.
Protecting critical infrastructure.
Actuals thru 9/30/19 Budget Section 4 - Page 31 of 34
Storm System Improvements
Project Description:
Service Impact:
Project
Estimate
Prior
Years Actual
2019
Adopted
Budget
2019
YTD Actual
2019
Projected
2020
Projected
2021
Projected
2022
Projected
2023
Projected
2024
Projected
2025
Projected
Total Project
Revenues
Storm Fund 120,000 120,000 24,202 60,000 100,000 300,000 150,000 50,000 50,000 50,000 760,000
Sewer SDC
Lodging Tax
Funds needed
Total Project Revenues 120,000 120,000 24,202 60,000 100,000 300,000 150,000 50,000 50,000 50,000 760,000
Expenditures
Planning/Preliminary Engineering
Design
Permitting
Construction 90,000 90,000 1,978 29,050 225,000 120,000 40,000 40,000 40,000 494,050
Construction Engineering
Project Management 30,000 30,000 22,225 30,950 100,000 75,000 30,000 10,000 10,000 10,000 265,950
Miscellaneous
Construction Contingency
Total Project Expenditures 120,000 120,000 24,202 60,000 100,000 300,000 150,000 50,000 50,000 50,000 760,000
Estimated Impact on Future Operating Budgets
2019
Current Budget
2019
YTD
2019
Projected
2020
Projected
2021
Projected
2022
Projected
2023
Projected
2024
Projected
2025
Projected
Operating
Debt
Total Impact - - - - - - - - - -
Notes:$50k of the $100k 2020 budget is for storm system design for the Discovery Rd Bike/Ped project and $250k of the $300k 2021 projection is for
storm system construction for the Discovery Rd project. $100k of the $150k in 2022 is for local street stormwater improvements as outlined in the
Stormwater Management Plan.
The storm system improvements are a combination of conveyance system improvements (i.e. roadside
ditches, swales infiltration system, curbing, etc.) along the City’s arterials and collectors.In addition, every 4-5
years the City anticipates doing a major arterial or collector roadway reconstruction and part of a roadway
reconstruction is to upgrade and/or enhance the roadway drainage system.In 2020 and 2021,the projected
amount is for the stormwater improvements for roadway work on Discovery Road.
System Improvement.
Actuals thru 9/30/19 Budget Section 4 - Page 32 of 34
CERB Regional Stormwater
Project Description:
Service Impact:
Project
Estimate
Prior
Years Actual
2019
Adopted
Budget
2019
YTD Actual
2019
Projected
2020
Projected
2021
Projected
2022
Projected
2023
Projected
2024
Projected
2025
Projected
Total Project
Revenues
Storm Fund 155,000 124,765 30,000 30,000 154,765
CERB 930,000 930,000 188,645 370,000 560,000 930,000
Misc Contributions 170 170 170
Funds needed
Total Project Revenues 1,085,000 124,765 960,000 188,815 400,170 560,000 1,084,935
Expenditures
Planning/Preliminary Engineering 10,000 3,481 6,500 890 6,500 9,981
Design 240,000 115,492 55,500 122,919 123,000 238,492
Permitting
Construction 575,000 648,000 100,500 475,000 575,500
Construction Engineering
Project Management 158,000 23,098 100,000 38,094 50,000 85,000 158,098
Miscellaneous 102,000 102,162 30,000 102,162
Construction Contingency
Total Project Expenditures 1,085,000 244,233 840,000 161,903 280,000 560,000 1,084,233
Estimated Impact on Future Operating Budgets
2019
Current Budget
2019
YTD
2019
Projected
2020
Projected
2021
Projected
2022
Projected
2023
Projected
2024
Projected
2025
Projected
Operating
Debt 18,200 81,362 81,362 81,362 81,362 81,362 81,362 81,362 81,362
Total Impact 18,200 81,362 81,362 81,362 81,362 81,362 81,362 81,362 81,362 569,531
Notes:The project has a completion deadline of October 2020.
This project will construct a new regional stormwater detention and infiltration system to serve commercial
properties along the Rainier Street, where soil conditions limit stormwater management options.
The project is funded large part by a CERB loan.
Economic development.
Actuals thru 9/30/19 Budget Section 4 - Page 33 of 34
Budget Section 4 - Page 34 of 34
CITY OF PORT TOWNSEND, WASHINGTON
FINANCIAL POLICIES
The City Council adopted updated “Finance and Budget Policy Guidelines” on October 21,
2019 (Resolution 19-085). These policy guidelines lay the framework for fund reserves,
revenue policies, transfers and inter-fund loans, general expenditure policies, debt
management, grant administration and budget and long-range forecasting.
Fund Reserve Policy
Fund Reserve targets were adopted to allow the City to maintain enough working capital and
to weather emergencies or unexpected revenue declines. The 2020 budget was developed to
ensure that ending fund balance amounts would align with the City Council Fund Balance
Reserve Policy.
The financial policies were changed to update the fund target for non-operating enterprise
funds, including the Golf Course Fund, to “Sufficient to Meet Obligations”. The Golf Course
operating lease expires at the end of 2020. A study was done by NGF Consulting to determine
the best way to operate the golf course after the lease expires, and Council is currently
weighing their recommendation to transition to a city-run golf course versus contracting with a
third-party operator.
The Stormwater Operations Fund is projected to fall below the reserve balance of 60 Days of
Operating Expenses in 2019. This is primarily due to funding storm capital project
investments. The city performed a rate study analysis with FCS Group to determine adequate
funding levels to bring the Stormwater Operations Reserve balance back in to compliance with
the fund balance reserve policies. Moderate rate adjustments have been approved by Council
for 2020 and the reserve balance is projected to be above the 60 Days requirement.
Along with Fund Reserve requirements, our financial policies provide that, in general,
operating revenues should cover operating expenditures. For 2020, the Library Fund, Real
Estate Excise Tax (REET) Fund, Lodging Tax Fund, Fire & EMS Fund, Debt Service Fund,
Golf Course Fund, and Equipment Rental & Replacement (ER&R) Fund have expenditures in
excess of revenues.
The Library Fund, REET Fund, Lodging Tax Fund, ER&R Fund, and Debt Service Fund are
projected to use a portion of fund balance excess reserves to fund expenditures for 2020.
•REET funds will be utilized to fund $40,000 for City match for capital projects.
•Lodging Tax funds of $50,000 are proposed to be used for downtown tree well lighting.
•ER&R Fund is used to fund the replacement of vehicles and adheres to the adopted
policy guidelines for this type of fund.
2020 Budget Section 5 - Page 1 of 106
•Debt Service Fund is using a small portion ($2,151) of reserves to fund expenditures in
2020.
•The Library budget proposes using $20,000 of reserves to fund the cost of contracting
with BERK to complete a strategic plan for service sustainability.
.
The Fire & EMS Fund will no longer be needed due to the annexation of City fire services to
East Jefferson Fire Rescue. Receipts that are received after December 31, 2019 for the EMS
or Fire Levy Lid Lift will be passed through to East Jefferson Fire Rescue, and the fund should
be at a zero balance at the end of 2020.
2020 Budget Section 5 - Page 2 of 106
Fund Balance Reserve Summary:
The following reserve balance scorecard shows the fund balance reserve results:
COUNCIL POLICY FUND TARGET
2016
Actual
Fund
2017
Actual
Fund
2018
Actual
Fund
2019
Estimated
Fund
2020
Budget
Fund
FUNDS (Policy Adopted July, 2018)Reserve % Reserve % Reserve % Reserve % Reserve %
General Operating Fund
General Fund 8 - 15% of operating revenue 17.2% 20.4% 20.4% 16.5%15.9%
Special Revenue Funds
Contingency Fund No less than 2% of estimated operating revenue 1.5% 2.1% 2.0%2.0% 2.0%
Street Fund 2 - 3% of expenditures 42.2% 47.1% 26.3% 25.8%24.2%
Library Fund 5 - 8% of property tax revenue 20.1% 23.2% 20.1% 22.0% 19.7%
Real Estate Excise Tax Fund Sufficient to meet obligations Meets Meets Meets Meets Meets
Lodging Tax Fund Sufficient to meet obligations Meets Meets Meets Meets Meets
Fire & EMS Services Fund Sufficient to meet obligations Meets Meets Meets Meets Meets
Affordable Housing Trust Fund Sufficient to meet obligations Meets Meets Meets Meets Meets
Community Development Block Grant Fund Sufficient to meet obligations Meets Meets Meets Meets Meets
Community Services Fund 2 - 3% of expenditures 7.5% 4.6% 5.0% 5.0% 5.0%
General Obligation Debt Service Fund
G.O. Debt Service Fund Sufficient to meet obligations Meets Meets Meets Meets Meets
Capital Projects Funds
General Capital Improvement Funds Sufficient to meet obligations Meets Meets Meets Meets Meets
Street Vacation Fund Sufficient to meet obligations Meets Meets Meets Meets Meets
Street Capital Improvement Fund Sufficient to meet obligations Meets Meets Meets Meets Meets
2015 Bond Fund Sufficient to meet obligations Meets Meets Meets Meets Meets
2017 Bond Fund Sufficient to meet obligations N/A Meets Meets Meets Meets
Enterprise Funds
System Development Charges Fund Sufficient to meet obligations Meets Meets Meets Meets Meets
Water Sewer Operating Fund 60 days of operating expenses 247 226 102 101 105
Water Sewer Capital Fund Sufficient to meet obligations Meets Meets Meets Meets Meets
Stormwater Operating Fund 60 days of operating expenses 45 137 81 52 92
Stormwater Capital Fund Sufficient to meet obligations Meets Meets Meets Meets Meets
Transmission Line Replacement Fund Sufficient to meet obligations Meets Meets Meets Meets Meets
78 Water Sewer Revenue Bond Fund Sufficient to meet obligations Meets Meets Meets N/A N/A
Utility Debt Reserve Fund Sufficient to meet obligations Meets Meets Meets Meets Meets
Golf Course Fund Sufficient to meet obligations Meets Meets Meets Meets Meets
Internal Service Funds
Public Works Admin Fund Sufficient to meet obligations Meets Meets Meets Meets Meets
Equipment Rental & Replacement Fund Sufficient to meet obligations Meets Meets Meets
Engineering Service Fund Sufficient to meet obligations Meets Meets Meets Meets Meets
Self-Insurance Unemployment Fund Sufficient to meet obligations Meets Meets Meets Meets Meets
Fiduciary Funds
Firemen's Pension Fund Sufficient to meet obligations Meets Meets Meets Meets Meets
Refundable Deposits Fund Sufficient to meet obligations Meets Meets Meets Meets Meets
Agency Fund Sufficient to meet obligations Meets Meets Meets Meets Meets
Memorial Fund Sufficient to meet obligations Meets Meets Meets Meets Meets
2016
Actual
2017
Actual
2018
Actual
2019
Estimated
2020
Budget
Annual Debt Service as % of Revenue Less than 15%11.5% 10.4% 10.4% 10.2% 12.0%
2016
Actual
2017
Actual
2018
Actual
2019
Estimated
2020
Budget
Operating revenues 50% or more than pool operating expenses 41.6% 43.2% 42.7% 36.8% 40.6%
Parks & Pool Fees
GO Debt Service as a % of General Government Revenue
City of Port Townsend Ending Fund Balance Scorecard
STATUS OF PERFORMANCE COMPARED TO FINANCIAL POLICIES
under review
2020 Budget Section 5 - Page 3 of 106
OVERHEAD INDIRECT COST RECOVERY POLICY
The City adopted a policy that allocates the indirect overhead costs, from the General Fund to
other funds. Consistent with the prior three years, City staff used the cost recovery model
developed by FCS Consultants to identify city-wide overhead costs, which include Council,
City Manager, City Clerk/Human Resources, City Attorney, Finance and Facility related
overhead costs. The model uses actual costs from two years previous; that is, the 2019
allocation was based on 2017 historical costs and the 2020 budget allocation was based on
2018 historical costs and activities.
Allocations to funds are based on pre-determined allocation factors. The chart below
represents the City-wide overhead costs for 2020 and the associated allocation factors that
determine how much each receiving fund is charged for overhead services.
Funds that had increases in allocation statistics, such as an increase in full time equivalents
(staff positions), increase in total expenditures, or an increase in department related council
agenda bills will receive a greater share of the overhead allocation. Conversely, funds that use
less administrative resources receive a smaller portion of allocated costs. Allocation statistics
are reviewed each year for appropriateness and updated as necessary.
Total Citywide
Allocable Costs Allocation Factor
011 Mayor & Council 114,123$ Council Bills
012 City Manager 340,079 50/50 Split: Actual Expenditures & FTEs
013 City Attorney - Civil 246,411 33/33/33 Split: Actual Expenditures, FTEs, & Council Bills
041 Finance - General 374,067 Actual Expenditures
041 Finance - AP 65,881 AP Invoices
015 Payroll 156,286 FTEs
015 Human Resources 214,683 FTEs
080 City Clerk - Council Support 142,207 Council Bills
080 City Clerk - General Other 74,278 Vehicle Insurance
080 City Clerk - Records Management 52,527 Records Count
FD 199 Community Services - City Facilities 503,726 Square Feet by Building
Liability Insurance 341,905 FTEs
Property Insurance 58,370 Value of Insured Property
Vehicle Insurance 2,272 # of Vehicles
TOTAL 2,686,815$
Budget 2020 - Indirect Cost Pools and Allocation Factors
Indirect cost pools
2020 Budget Section 5 - Page 4 of 106
A comparison of the 2020 and 2019 overhead allocation charged to funds is shown on the
following table:
The total calculated overhead for 2020 is $2,686,815 or $144,818 greater than the 2019
overhead. Some funds without sustainable resources (e.g. the CDBG Fund and the Affordable
Housing Fund) are not charged overhead and the General Fund does not recover overhead
from itself. For 2020, the overhead allocation recovered by the General Fund increased by
$91,302 largely due to an increase in overhead charges to the Water/Sewer and Storm funds
which had increased expenditures in both operations and capital projects in 2018 as compared
to 2017. The General Fund transfers funds to support the overhead allocation for both the
Community Services Fund and the General and Street Capital Project Funds. The net result of
the changes in the overhead allocation received by the General Fund in 2020 is $138,808
more than the amount received in 2019.
Adopted Cost
Recovery
Budget 2019
2020 Proposed
Overhead
Allocation
Charges
Increase /
(Decrease)
FD 110 Street 45,743$ 48,006$ 2,263$
FD 120 Library 232,915$ 225,088$ (7,827)$
FD 150 Lodging Tax 9,908$ 21,824$ 11,916$
FD 199 Community Services 246,324$ 215,075$ (31,249)$
FD 301 General CIP Projects 29,331$ 51,086$ 21,755$
FD 305 CIP Street 96,704$ 58,692$ (38,012)$
FD 411 Water Sewer Fund (excl. Utility Billing)327,983$ 416,971$ 88,988$
FD 411 Finance - Utility Billing 38,952$ 42,964$ 4,012$
FD 412 Storm Fund 52,612$ 74,414$ 21,802$
FD 415 Water Sewer CIP 96,379$ 100,976$ 4,597$
FD 417 1956 Trans Line Replacement 10,702$ 17,394$ 6,692$
FD 423 Golf Course 7,229$ 10,714$ 3,485$
FD 510 Equipment Rental - Fleet 45,992$ 49,706$ 3,714$
FD 520 Equipment Rental - IT 30,259$ 34,094$ 3,835$
FD 540 Public Works Administration 52,547$ 47,198$ (5,349)$
FD 555 Engineering Services 105,222$ 106,531$ 1,309$
FD 610 Firemen's Pension and Relief 1,852$ 1,224$ (628)$
Total Overhead Charged to Funds 1,430,655$ 1,521,957$ 91,302$
Total Calculated Overhead 2,541,997$ 2,686,815$ 144,818$
City Department
Funds Charged with Overhead / Indirect Costs
2020 Budget Section 5 - Page 5 of 106
2020 Budget Section 5 - Page 6 of 106
Comprehensive Financial Management Policy Guidelines - Page 1 of 25
City of
Port Townsend
Comprehensive
Financial
Management
Policy Guidelines
Adopted October 21, 2019
2020 Budget Section 5 - Page 7 of 106
Comprehensive Financial Management Policy Guidelines - Page 2 of 25
Comprehensive Financial Management Policies Index
I. FINANCIAL POLICY GUIDELINES .................................................................................. 3
II. ORGANIZATION ................................................................................................................ 3
III. ACCOUNTING, AUDITING AND FINANCIAL REPORTING ..................................... 4
IV. FUND STRUCUTURE & FUND RESERVE GUIDELINES ........................................... 6
V. REVENUE POLICIES ......................................................................................................... 9
VI. OVERHEAD COST RECOVERY (COST ALLOCATION) .......................................... 10
VII. GENERAL BUDGET POLICIES ................................................................................... 11
VIII. FINANCIAL PLANNING POLICIES .......................................................................... 14
IX. ENTERPRISE FUNDS ..................................................................................................... 14
X. CAPITAL INVESTMENT PROGRAM PLAN POLICIES .............................................. 15
XI. DEBT MANAGEMENT POLICY ................................................................................... 15
XII. PURCHASING POLICY ................................................................................................ 17
XIII. GRANTS MANAGEMENT POLICY .......................................................................... 18
APPENDIX A - INVESTMENT POLICY
APPENDIX B - CITY OF PORT TOWNSEND FEDERAL AWARDS STANDARDS,
PROCUREMENT POLICY & CODE OF CONDUCT
EXHIBIT A - FLEET EQUIPMENT RENTAL AND REPLACMENET FUNDAND FLEET
OPERATING AND MAINTENANCE FUND POLICIES
EXHIBIT B - I.T. EQUIPMENT RENTAL AND REPLACEMENT FUND AND I.T.
OPERATING AND MAINTENANCE FUND POLICIES
EXHIBIT C -PURCHASING POLICIES AND PROCEDURES MANUAL
2020 Budget Section 5 - Page 8 of 106
Comprehensive Financial Management Policy Guidelines - Page 3 of 25
I. FINANCIAL POLICY GUIDELINES
The financial policies outlined in this document have been developed in accordance with
the Government Finance Officers Association’s “Best Practices”. These policy guidelines
are intended to aid the City Council and City management in financial decision making.
These policy guidelines also provide a means to guide short-term financial and budget
decisions to help ensure the City is able to meet its immediate and long-term financial
service objectives and obligations. These policies will be reviewed and/or updated no less
than every three years.
The City of Port Townsend is accountable to its citizens for the use of public funds.
Municipal resources must be wisely used to ensure adequate funding for services, public
facilities and infrastructure needed to meet the community’s present and future needs.
These policies are designed to help safeguard the fiscal stability required to achieve the
City’s goals and objectives.
The City’s Comprehensive Financial Policies have the following objectives:
• To guide the City Council and management policy decisions that have significant
financial impact.
• To set forth operating principles which minimize the cost of government and
financial risk to the City.
• To employ balanced, consistent and fair revenue policies that provide adequate
funding for desired programs.
• To promote sound financial management by providing accurate and timely
information on the City’s financial condition.
• To protect the City’s credit rating and provide for adequate resources to meet the
provision of the City’s debt obligations for all municipal debt.
• To ensure the legal use of financial resources through an effective system of
internal controls.
II. ORGANIZATION
The City provides municipal services for its citizens, including protection of life and
property, public health and welfare, and improved quality of life. The City Council deems
it a high priority to deliver municipal services in the manner consistent for all citizens,
and with maximum efficiency and financial prudence.
The Council, as the legislative and governing body, sets the City’s Financial and Budget
Policy Guidelines, and through its Finance and Budget Committee, monitors and reviews
the City’s overall financial performance.
The City Manager, as the City’s Chief Executive Officer and Chief Budget Officer, is
responsible to the Council for managing City operations and program services, and
preparation of the City’s Annual Budget consistent with established Financial and Budget
Policy Guidelines.
2020 Budget Section 5 - Page 9 of 106
Comprehensive Financial Management Policy Guidelines - Page 4 of 25
The Director of Finance and Administrative Services, as the City’s Chief Financial
Officer and Chief Auditing Officer, is responsible to the City Manager for the preparation
of accurate and timely financial and budget reporting. Additional responsibilities include
human resource and information technology administration, general accounting, business
license/tax administration and utility billing operations, grant, federal & state funding
compliance, purchasing administration, as well as policy advice to the City Manager and
Council.
The Department Heads are responsible to the City Manager for department operations,
budget observance, capital project management, and grants administration. Department
Heads monitor related revenue performance and expenditure control with the assistance
of the Finance Department.
The City must prioritize its services and, should revenues become constrained, the
following services are considered priorities in the following general order:
1. Public Life, Health and Safety: Police, fire, emergency medical services; building
inspections; and traffic control; water, sewer, and storm drainage service and
streets infrastructure maintenance.
2. Legal Mandates: Accounting/auditing/financial reporting; land-use planning;
required staff certifications and training.
3. City Facilities and Property: maintenance of parks, buildings, public rights of
way, and City equipment (including information technology equipment);
4. Council and community goals, both annual and long-range, including strategic
plan goals.
III. ACCOUNTING, AUDITING AND FINANCIAL REPORTING
The City will maintain a system of financial monitoring, control and reporting for all
operations and funds to provide effective means of ensuring that overall City goals and
objectives are met.
Accounting Records and Reporting – The City will maintain its accounting records in
accordance with state and federal regulations. Budgeting, accounting and reporting
activities will conform to the Budgeting, Accounting and Reporting System (BARS) for
Governments as prescribed by the Washington State Auditor. The City maintains its
accounting and budgeting records on a cash basis and adheres to the cash basis BARS
manual.
Capital Assets – As a cash basis entity, the City records and reports only inflows and
outflows of cash. When a capital asset is purchased the entire expenditure is recorded
when the cash is expended and depreciation is not recorded. The City considers capital
assets to be real and intangible assets above $5,000 in value that have an anticipated life
of one year or more. Capital assets are tracked by the Finance Department as a fixed asset
2020 Budget Section 5 - Page 10 of 106
Comprehensive Financial Management Policy Guidelines - Page 5 of 25
inventory . Items that are no longer needed or no longer functional will be disposed
according to the City surplus policy (PTMC 3.44.030) and state law.
Capital assets that are purchased with grant funds may be subject to additional
compliance requirements. The department obtaining the grant is responsible for
understanding any compliance requirements related to acquiring, inventorying, tracking
and disposing of assets obtained through these types of funds.
Small and Attractive Assets - The City identifies small and attractive assets as items
with a cost greater than $300 but less than $5,000. These items have a life expectancy of
more than one year AND are not likely to be immediately missed upon disappearance.
These items are generally mobile in nature and may be easily transported from the
workplace. Some exceptions to the $300 minimum include tablets, phones, personal
computers and other lower cost items that have ongoing maintenance or service costs
associated with them. Department Heads are accountable for the security of these items
and are responsible for following the Small and Attractive Assets Policy and Procedures
that have been adopted by Council (Resolution 16-022). The Finance and Administrative
Services Director has oversight responsibility for this policy and the associated inventory
of these items.
Auditing – The Washington State Auditor will perform the City’s financial, federal
single audit and accountability/compliance audits in accordance with state and federal
laws. Results of the audit will be provided to the Council in a timely manner.
Cash Management – The Finance & Administrative Services Director will ensure that
cash management systems are developed to ensure accurate and timely accounting for all
cash and security of all cash assets.
Careful financial control of the City’s daily operations is an important part of the City’s
overall fiscal management practices. Achieving adequate cash management and
investment control requires sound financial planning to ensure that sufficient revenues are
available to meet the current expenditures of any operating period.
The City’s cash management and investment guidelines are as follows:
• The City will maintain a cash management program, which includes internal
control practices for collection of accounts receivable, disbursement of funds, and
prudent investment of its available cash.
• The Finance & Administrative Services Director (Finance Director) serves as the
investment officer of the City of Port Townsend. The Finance Director is
authorized to oversee the investment program and to develop operating
procedures to administer the program. The Finance Director may delegate the
authority to conduct investment transactions and manage the operation of the
investment portfolio to one or more subordinates as outlined in the investment
program operating procedures. All participants in the City’s investment process
shall act responsibly as custodians of the public trust.
2020 Budget Section 5 - Page 11 of 106
Comprehensive Financial Management Policy Guidelines - Page 6 of 25
• As permitted by law and City ordinances and to maximize the effective
investment of assets, all funds needed for general obligations may be pooled into
one account for investment purposes. The income derived from this account will
be distributed to the various funds based on their average fund balances on a
periodic basis.
See APPENDIX A for Full Investment Policy.
IV. FUND STRUCUTURE & FUND RESERVE GUIDELINES
The City’s accounting and budgeting systems are organized and operated on a fund basis.
Funds are accounting entities used to record revenues and expenditures. By definition,
balanced funds mean that total revenues equal total expenditures. The budgeted funds are
grouped into categories: General, Special Revenue, Debt Service, Capital Projects,
Enterprise, and Internal Service.
The following provides a brief description of the fund types and reserve guidelines for
each fund. The numbers in parentheses represent the BARS manual fund series
numbering scheme.
GENERAL FUND (010) -- This is the primary operating fund or current expense fund
of the City. To maintain the City’s credit rating and meet seasonal cash flow, the budget
shall provide for an anticipated undesignated fund balance between 8% and 15% of
estimated annual revenues for general government fund types. The fund balance shall be
exclusive of all reserves not anticipated to be readily available for use in emergencies and
contingencies. Should the fund balance fall below 8% of revenues, a plan for expenditure
reductions and/or revenue increases shall be submitted by the City Manager to the
Council. If, at the end of a fiscal year, the fund balance falls below 8%, then the City
shall rebuild the balance within a period not to exceed three fiscal years.
GENERAL FUND COUNCIL RESERVE (Included in the General Fund) – The
annual budget for the General Fund shall provide for a “Council Reserve” equivalent to
approximately 1% of estimated operating revenues in the General Fund (010). Only the
General Fund shall maintain a “Council Reserve.” The Council Reserve is established to
provide for community requests or unanticipated needs deemed necessary by Council.
The Council Reserve shall be suspended during times of significant economic downturn,
especially during years when the General Fund ending fund balance falls below 8%. The
Council Reserve is a budgeted appropriation expected to be specifically allocated at the
Council’s discretion. Unspent council reserves will not carry over to the next fiscal year.
SPECIAL REVENUE FUNDS (101-199) -- These funds account for revenues derived
from special taxes, grants or other restricted sources designed to finance particular
2020 Budget Section 5 - Page 12 of 106
Comprehensive Financial Management Policy Guidelines - Page 7 of 25
activities defined when the fund is established or outlined by state law. Apart from any
unrestricted General Fund contributions to a Special Revenue Fund, the unexpended
ending fund balances carry over year to year and should retain enough revenue to cover
operating cash flow and anticipated major project or program obligations of the fund.
Of these funds, the Street, Library, and Community Services funds are of an operations
nature. The Street and Community Services Funds reserve target will be equivalent to 2-
3% of fund expenditures. The Library Fund reserve target is set at 5-8% of Library
property tax revenue.
Other Special Revenue Funds are more cyclical or project related and only need retained
ending fund balances or transfers in to cover anticipated obligations: Drug Enforcement,
Lodging Tax, Fire/EMS, Affordable Housing, and CDBG Grants.
CONTINGENCY (102) – While classified as a Special Revenue Fund, the City’s
Contingency Fund is more of a strategic reserve to meet emergency conditions or to help
maintain essential services during periods of economic downturn. Each fund should
retain enough in its own Ending Fund Balance Reserves to offset minor non-recurring or
unanticipated expenses during the budget year. The City’s Contingency Fund is intended
for major events and should be maintained at no less than 2% of the General Fund annual
estimated operating revenues. If the contingency falls below 2% of estimated operating
revenue, the City will initiate a plan that will restore the balance to the required level over
a three-year period.
DEBT SERVICES FUND (200) – These funds are used to pay general government debt.
The City shall retain or transfer in funds sufficient to cover the annual debt service
obligations, and retain such “coverage” amounts to comply with bond covenants or other
loan restrictions.
CAPITAL PROJECTS FUNDS (300) – These funds are established for the acquisition
or construction of general government (non-utility) capital improvements. Ending Fund
Balance Reserves should be maintained at levels sufficient to cover anticipated annual
expenditures with transfers in from supporting funds (General, REET, etc.) to cover
project needs and to balance the funds.
ENTERPRISE FUNDS (400) – These funds are the proprietary or “business-like” funds
for operations providing services to the general public supported primarily through user’s
fees (Water, Sewer, and Stormwater).
The Ending Fund Balances of the operating funds should be equal to or greater than 60
days of operating expenditures and any additional amounts needed to build towards
future project cash or debt payment needs. To the extent that the reserved Fund Balance
and operating cash flow are not adequate to fund needed utility system improvements or
maintain 60 days of operating expenditures, additional rate increases or surcharges may
be adopted by Council.
2020 Budget Section 5 - Page 13 of 106
Comprehensive Financial Management Policy Guidelines - Page 8 of 25
Included as Enterprise Funds are the Utility Debt Service Reserve Funds, Utility Capital
Project Funds, Olympic Water Gravity System (Transmission Line) Fund, the System
Development Fund, and Golf Course Fund; however these funds are not required to
maintain 60 days of operating expenditures due to the nature of the funds.
Revenue bonds may be issued by the Enterprise Funds. Investors may require additional
lending requirements or covenants (such as a pledge of future revenue streams from the
fund). The ending fund balance of the Enterprise Funds should include a reserve to cover
any additional covenant requirements.
INTERNAL SERVICE FUNDS (500) – These funds are also internal “business-like”
funds for operations providing services to other City departments (funds) on a direct cost-
reimbursement basis (e.g. Equipment Rental including Information Technology services
and equipment, Public Works Administration and internal Engineering Services). The
purpose of a reserve in an internal service fund is to ensure that the fund is able to
continue to provide the service without interruption. Fund balances should break even
after set aside of funds for future capital equipment replacements.
FIDUCIARY FUNDS (600) – These funds account for assets held by the City as a
trustee or as an agent on behalf of others. Ending Fund Balances and any transfers in
should be maintained consistent with fund restrictions.
ENDING FUND BALANCE, RESERVES, CONTINGENCY SUMMARY
The following is a summary of the reserves guidelines. Guidelines will be reviewed
annually as a part of the Budget process:
• General Fund ........................................... 8-15% of operating revenue
• Library ..................................................... 5-8% of property tax
• Street ........................................................ 2-3% of expenditures
• Community Services ............................... 2-3% of expenditures
• Other Special Revenue Funds ................. Sufficient to meet obligations
• Contingency ............................................. No less than 2% of estimated operating
revenue
• Debt Service ............................................ Sufficient to meet obligations
• General and Enterprise Capital Funds Sufficient to meet obligations
• Enterprise Operating Funds ..................... 60 days of operating expenditures
• Internal Service ........................................ Sufficient to meet obligations
• Fiduciary Funds ....................................... Sufficient to meet obligations
The undesignated General Fund Balance (the balance not tied to a known project) will be
maintained at a level that provides the City with sufficient working capital and a
comfortable margin of safety to address emergencies and unexpected declines in revenue
without borrowing. The City should not use the undesignated General Fund Balance to
2020 Budget Section 5 - Page 14 of 106
Comprehensive Financial Management Policy Guidelines - Page 9 of 25
finance recurring operating expenditures. Annual General Fund revenues should be equal
to or greater than annual regular operating expenditures.
Reserves above the target can be used for new expenditures, with emphasis placed on one
time uses that achieve future operating cost reductions.
General Fund revenues will be used for general government, street and community
service programs only. General Fund revenue for other purposes will require approval by
the City Council.
General Fund revenues will not be used to subsidize utility or enterprise operations,
which will be self-supporting through user rates.
V. REVENUE POLICIES
General Revenue Policies - The City will strive to maintain a diversified and stable
revenue system to shelter the government from short-term fluctuations in any one
revenue source and ensure its ability to provide ongoing service. The revenue portfolio
will strive to draw resources from the community that is perceived as fair and equitable.
Restricted revenue shall only be used for the purposes legally permissible and in a
fiscally responsible manner. Programs and services funded by restricted revenue will be
clearly designated as such.
Non-recurring and excess yield on volatile revenues (sometimes considered “one-time”
revenues) should support one-time expenditures. Examples of acceptable uses of non-
recurring and excess yield on volatile revenue include paying down debt, building up
reserve balances, special projects and capital equipment.
County, state or federal funding will be used to finance only those capital improvements
that are consistent with the capital improvement plan and local government priorities, and
whose operation and maintenance costs have been included in operating budget forecasts.
Enterprise Fund Revenue Policies – Enterprise operating funds will be operated in a
manner that generates sufficient revenues to maintain a minimum ending fund balance
that is not less than 60 days of operating expenditures.
Utilities will be self-supporting through user rates and charges.
Utility user charges for each of the City utilities will be based on cost of service (i.e., set
to full support the total direct, indirect, and capital costs) and established so that the
operating revenues of each utility are at least equal to its operating expenditures and
annual debt service obligations. The user rates of a utility shall be designated so that a
portion covers replacement of the utility’s facilities.
2020 Budget Section 5 - Page 15 of 106
Comprehensive Financial Management Policy Guidelines - Page 10 of 25
The Utility will conduct a study of its user rates no less than every 5 years to ensure rates
are adequate to fund operations and meet future needs.
Fund balances may be used to temporarily offset rate increases, after sufficient funds
have been accumulated for identified capital improvement needs or alternative funding
for projects has been secured.
Fees and Charges (Non-Utility) – All fees for licenses, permit, fines, and other
miscellaneous charges shall be set to recover the City’s expense in providing the
attendant service. Average cost or actual cost methodology may be used. These fees will
be reviewed periodically and will be incorporated into the budget process for possible
action by Council.
Fees and charges for services will generally be set to recover the actual cost of service
delivery. Fees that are set lower than the cost of service delivery will be reviewed at
least every other year to determine if those fees are still appropriate based on City
finances and the community needs.
Where direct beneficiaries of a city program or services can be identified, fees will be
established to recover the costs of that program or service. Fees will also be set in a
manner that protects tax payers from subsidizing special service users. A fee shall be
charged for any service that benefits limited interests within the community, except for
human needs type services to persons with limited ability to pay.
Rental fees will be established to recover full cost of use of the property or facility. Fees
related to the rental of City properties may be waived only through approval of the City
Manager. The waiver of fees will only be provided if the purpose of the rental or its
associated event will benefit the community at large.
Some services provide greater benefit to the community. When a greater community
benefit is identified, the Council may choose to subsidize, either whole or in part, such
services.
Park and Pool Fees – The Pool division will strive to recover 50% of Pool direct costs
by generating revenues through special programs, fees, charges, donations and/or
designated use of City-operated facilities.
Through a volunteer recruitment program, the Parks will seek to minimize the subsidy
required for partial and minimum fee support programs.
Solicitation of funds through donations, fund raising events, non-traditional sources, and
various other modes will be encouraged by the City through its park and pool user
groups. Funds collected for any special purpose shall be earmarked for that purpose.
VI. OVERHEAD COST RECOVERY (COST ALLOCATION)
2020 Budget Section 5 - Page 16 of 106
Comprehensive Financial Management Policy Guidelines - Page 11 of 25
As provided in the Washington State Auditor’s Office guidelines, “Cost allocation is a
method to determine and assign the cost of central services to the internal-government
users of those services. Cost allocation thereby enables local governments to more
accurately account for the complete cost of the services it provides to the public—and to
better assess the fees it should charge them.” Included in cost allocation are direct costs
(not otherwise charged to budget units) and indirect costs. Direct Costs are those costs
that can be specifically identified with a particular service or unit if not already charged
directly (e.g. facilities, janitorial, etc.) Indirect Costs are costs incurred for common or
joint purposes, benefiting more than one unit, not readily assignable to a specific unit
(e.g. legal, human resources, administration, clerk, etc.).
The term “allocation” implies that there is no overly precise method available for direct
charging a cost to a unit, so the City is using the most appropriate method available for
doing so. However, a cost allocation plan should be designed and used to provide a
reasonable, consistent and equitable means to allocate costs. Inequitable charges result in
questionable charges to grant, utilities and restricted funds. For grant purposes, costs that
benefit the public at large cannot be included and should follow the OMB A-87 and/or
2CFR Part 200 guidelines.
The Council adopted a Cost Allocation Plan in Resolution 14-035 on June 25, 2014. In
addition to using the overhead cost recovery model to assess the appropriate amount of
overhead to utilize for establishing user fees, the model will be used to apply charges to
Departments/Funds for City-wide overhead indirect cost recovery where allowed
(Council, City Manager, City Clerk, City Attorney and Finance).
The Council may authorize waiver of the overhead cost-recovery in all or part if Council
determines doing so will provide a general benefit to the citizens, taxpayers or utility rate
payer. If a portion of the overhead cost-recovery is waived, the General Fund must absorb
these costs; waived costs may not be absorbed by or reallocated to a Special Revenue or
Enterprise Fund.
VII. GENERAL BUDGET POLICIES
Annual Budget – The City’s annual budget will be developed in accordance with the
policies and priorities set forth in the comprehensive plan, the City Council’s strategic
plan, City Council goals and priorities, the needs of the community, and federal and state
laws.
In general, budgeted operating revenues must meet or exceed budgeted operating
appropriations each year. Current year operating expenses, maintenance costs and direct
and indirect costs of services provided will be covered by current year operating
revenues. One-time expenditures may be appropriated if one-time revenues or excess
fund balance (in excess of reserve requirements) are available.
2020 Budget Section 5 - Page 17 of 106
Comprehensive Financial Management Policy Guidelines - Page 12 of 25
The City budget appropriations are adopted at the fund level. Department heads are
responsible for preparing a budget that reflects realistic expense projections and that
adhere to guidelines within this policy document.
Expense (Appropriation) Policies – Operating expenditures will be proposed at a level
that will be supported by ongoing annual operating revenues. The city will strive to a
level of expenditures sufficient to ensure the ongoing health, safety and welfare of the
community.
Staffing Budget – Salary and benefit costs are the City’s most significant operating
expense. The City will strive to provide a total compensation package that is comparable
to other cities and similar type positions within the same labor market or other cities of a
similar size with comparable type and quality services in order to recruit and retain high
quality staff.
The City Manager’s proposed budget will identify staffing levels and provide
justification for any increases or decreases in overall City staffing.
Union Contract negotiations may impact budget expenditures annually. However, if a
collective bargaining agreement is, or will be, under negotiation, a specific amount will
not be included in the budget from potential wage adjustments resulting from the
negotiation, other than a base COLA adjustment. This is to protect the City from any
claims of not “bargaining in good faith”. Funding for unknown contract terms must be
considered in balancing ongoing revenues with ongoing expenses.
Equipment Replacement & Maintenance - Equipment replacement and maintenance
projections will be updated according to the Fleet Equipment Rental and Replacement
Fund and Fleet Operations and Maintenance Fund Policies (EXHIBIT A) and the
Information Technology(I.T.) Equipment Rental and Replacement Fund and I.T.
Operations and Maintenance Fund Policy (EXHIBIT B).
In general, The Fleet Equipment Rental and Replacement Committee is responsible for
planning, directing, managing, coordinating and supervising programs for the acquisition,
assignment, maintenance and repair, rental, replacement of the City Fleet. This
committee will meet at least annually to recommend fleet purchases for the upcoming
budget year. Fleet replacement rates (if applicable to Funds) will be evaluated at least
once per year and recommended to council for appropriation in the annual budget.
Fleet maintenance rates will be adjusted to recover 100% of the actual direct and indirect
costs. Fleet maintenance rates will be reviewed mid-year. Current year rates, if
necessary, will be adjusted through an adopted supplemental budget request, and rates for
the upcoming budget year will be established and adopted by City Council with the
annual budget appropriations.
In general, the Technology Services Department, in collaboration with the Finance
Department, will be responsible for planning, directing, managing, coordinating and
2020 Budget Section 5 - Page 18 of 106
Comprehensive Financial Management Policy Guidelines - Page 13 of 25
supervising programs for acquisition, assignment, maintenance and repair, rental,
replacement and disposal of the City’s I.T. equipment. I.T. replacement rates will be
evaluated at least once per year and recommended to council for appropriation in the
annual budget.
I.T. maintenance rates will be adjusted to recover 100% of the actual direct and indirect
costs. I.T. maintenance rates will be reviewed mid-year. Current year rates will be
adjusted through an adopted supplemental budget request, if necessary, and rates for the
upcoming budget year will be established and adopted by City Council with the annual
budget appropriations.
Training and Travel – City employees or others on official City business or training
may be required to travel outside the City to conduct their business or training for the
City. City employees and officials will be reimbursed for reasonable and customary
expenses incurred in the conduct of their business for the City, including food, lodging
and travel expenses while away, excluding any expenses for personal entertainment or
alcoholic beverages, as provided in the City’s Personnel Policies Manual for business or
training travel. Such training or travel shall be as provided either specifically or generally
in the annual budget.
Training is an investment in maintaining the certifications and skills of the City’s
employees. At least 1% of the department’s budgeted salary expense will be allocated for
certifications and skills training. The City will also include a targeted amount of 1% of
City-wide salaries for organizational development and process improvement.
Investments that Forestall Adding Permanent Staff - Since personnel-related
expenditures represent the largest portion of the City’s budget, funding of technology or
process improvements that increase efficiency and effectiveness of the delivery of City
services should receive priority funding.
Budget Monitoring-
The Finance & Administrative Services Director will maintain a system for monitoring
the City's budget performance. This system will provide timely information to
Department Heads and the City Manager to ensure accuracy of financial data and
compliance with budget appropriations. The Council will receive (at a minimum)
quarterly reports regarding fund level revenues and expenditure performance compared to
budget.
Significant financial issues that need to be addressed between regular monitoring reports
will be provided to Council as warranted.
The Finance & Administrative Services Director will monitor unanticipated needs or
emergency expenditures and prepare budget amendments in compliance with State Law.
Department Heads will be responsible for maintaining budgetary discipline and analyzing
2020 Budget Section 5 - Page 19 of 106
Comprehensive Financial Management Policy Guidelines - Page 14 of 25
all over and under spending. Explanations for variances in spending to authorized
appropriations willbe provided by the Department Director to the Finance and
Administrative Services Director in a timely manner.
VIII. FINANCIAL PLANNING POLICIES
FINANCIAL FORECAST – The City will develop a 5-year Financial Plan and Forecast
Model based on these financial policy guidelines and a best estimate of likely revenues
and expenditures. The model will be used to test the policies against likely surrounding
economic conditions. The model will be used for long-range financial planning and is not
a replacement for budgeting.
The City’s financial planning will include the current year budget plus five additional
years of projected data. The City may elect to extend its planning horizon further if
conditions warrant.
The long range financial plan operating revenues and expenses will include data for the
General Fund, Contingency Fund, Library Fund and Community Services Fund. In
addition to ongoing revenues and expenses, this forecast will utilize assumptions that
forecast general obligation debt and general fund contributions to capital projects.
The long range financial plan should present trends and projections in key financial
indicators, such as:
• Revenues and expenses per capita including nominal and inflation adjusted data.
• Staffing levels per 1,000 population: total and by major department.
• Projected annual growth rates of revenues and expenses including personnel
costs.
The long range financial plan may include comparisons to other cities and benchmarks,
recognizing that the data for comparable cities may reflect differences in service deliver y,
financial structure and financial policies. Comparative information may include:
• Comparative revenues and expenses by major type to include:
o Total revenues and expenses per capita.
o Taxes per capita by tax source.
IX. ENTERPRISE FUNDS
The Water, Sewer and Stormwater utilities will be managed as self-supporting business
enterprises. Each utility will be managed in a professional manner in accordance with
applicable laws and standards. The long-range financial plan model for each utility will
analyze rate revenues, rate structure, operating costs, replacement capital costs, debt
service and other utility considerations (special rate programs, paybacks, etc.). The City
may utilize specialized rate consultants to evaluate the rate and cost structure of the
utilities.
2020 Budget Section 5 - Page 20 of 106
Comprehensive Financial Management Policy Guidelines - Page 15 of 25
X. CAPITAL INVESTMENT PROGRAM PLAN POLICIES
General Policy Considerations - The major resources for funding capital improvement
and capital maintenance programs are revenues, grants and debt. Financing planned
capital replacement costs are an ongoing challenge. Preparing for the challenges of
infrastructure replacement or enhancements demands a long-term view of replacement
needs. In order to plan for these needs the City will develop a six-year Capital
Improvement Plan (CIP) for adoption by Council as required by the Washington’s
Growth Management Act. The CIP will be consistent with the Capital Facilities Element
of the City’s Comprehensive Plan. A capital project over $15,000 with a minimum of a
five-year anticipated life will be included in the CIP.
The city should weigh the full lifecycle costs of proposed projects in relation to funding
sources and strategic plans and determine the availability of funding sources. If debt
financing is needed, the cost of the debt should be analyzed against the city’s debt
capacity and debt management policies before being incorporated in the CIP.
The CIP should include the following:
Project description
Identify anticipated funding sources
Outline the project’s proposed timing and scope
XI. DEBT MANAGEMENT POLICY
Statement of Purpose – The debt financing policy statement sets forth comprehensive
guidelines for the financing of capital expenditures. It is the objective of the policy that
(1) the City obtain financing only when necessary, (2) the process for identifying the
timing and amount debt or other financing be as efficient as possible, (3) the most
favorable interest rate and other related costs be obtained, and (4) when appropriate,
future financial flexibility be maintained.
The Finance and Administrative Services Director is charged with carrying out the policy
and developing recommendations for financing.
Long Term Debt - The City will manage its long-term debt in a manner designed to
utilize its credit to optimize City services while balancing overall debt levels and annual
debt service obligations. Long-term debt includes Bonds, Federal or State loans (e.g.
Public Works Trust Fund, Federal Housing Administration, State Revolving Fund), or
private placement financing. The City shall only use long-term debt for capital projects
that cannot be financed out of current revenues. Annual debt payments should not exceed
15% of the total of annual General Government operating revenues plus budgeted
transfers from capital funding sources. General Government Funds include the General
Fund, Contingency Fund and Special Revenue Funds.
2020 Budget Section 5 - Page 21 of 106
Comprehensive Financial Management Policy Guidelines - Page 16 of 25
Debt financing will generally be limited to capital improvement projects identified in the
capital improvement planning process and only under the following circumstances:
• When the project’s useful life will exceed the term of the financing;
• When project revenue or specific resources as identified will be sufficient to
service the debt;
•
• ;
• When projects cannot be cash funded.
Debt financing will not be considered appropriate for:
• Current or ongoing operating and maintenance expenses (except for issuing short-
term instruments such as revenue anticipation notes or tax anticipation notes); and
any recurring purpose (except as indicated above).
The City’s Limited (non-voted) General Obligation (LTGO) Debt Capacity per State Law
is 1.5% of total assessed value. The City should seek to retain 5-10% of its LTGO Debt
Capacity for unforeseeable emergencies.
Short Term Debt – Short-term debt is used to cover the gap in long-term financing or to
finance short lived assets. Short-term debt financing instruments may be considered if
the transaction costs plus interest of the short-term debt are less than the cost of internal
financing and / or if it is more practical to use than committing available operating and
working capital cash. Before issuing short-term debt, there should be a reasonable
certainty that a known revenue source will be received to repay the debt, unless there is a
clear financial emergency.
Options for Interim or “Bridge” financing may include:
• Bond Anticipation Notes (BANS)
• Tax Anticipation Notes (TANS)
• Lines of Credit with major financial institutions
• Interfund Loans
Bond Anticipation Notes (BANS) are used when capital projects begin before long-term
bond proceeds have been received. Tax / Revenue Anticipation Notes (TRANS) are
used to cover operating expenditures when tax revenues are received in large lump sums
later in the year (Example: Property Taxes).
Tax anticipation debt will be retired annually, and bond anticipation notes should be
retired within twelve (12) months of the completion of the project or prior to maturity.
Short-term debt outstanding at the end of the year will not exceed 5% of net operating
revenue (including tax anticipation notes but excluding bond anticipation notes.)
2020 Budget Section 5 - Page 22 of 106
Comprehensive Financial Management Policy Guidelines - Page 17 of 25
Transfers – General Fund transfers to other funds are intended as payments for the
support of specific programs or services. Amounts not needed to support such specific
program or service expenses will remain in the General Fund’s fund balance. Operating
transfers result in a change in fund equity. For example, the General Fund may make
transfers to the Debt Fund to fund annual debt service payments or to the Community
Services Fund to support parks or service programs.
Interfund loans are temporary in nature. The requirements for interfund loans are as
follows:
• The Council must approve all interfund loans by resolution. The resolution will
include a planned schedule of repayment of the loan principal as well as setting a
reasonable rate of interest to be paid to the lending fund.
• The borrowing fund must reasonably be able to anticipate sufficient revenue to
repay the principal and interest payments as required by the authorizing
resolution.
• The rate of interest should not be lower than the “opportunity cost” if the funds
were otherwise invested, such as the LGIP (Local Government Investment Pool)
rate or a bank CD rate for a similar term; not higher than the external rate
available to the municipality.
• Interest is not required in the following circumstances:
o If the borrowing fund has no independent source of revenue other than the
lending fund;
o The lending fund is the General Fund, which, being unrestricted, can
provide interest free loans to other funds.
• The term of the interfund loan will not exceed three years. Any interfund loans
that are not repaid within three years will be scrutinized for a “permanent
diversion” of moneys. (Note: These restrictions and limitations do not apply to
those funds which are legally permitted to support one another through
appropriations, transfers, advances, etc.)
For short-term cash deficits in non-General Fund operating funds during the course of the
year, City interfund loans are preferable to outside short-term or private sector lines of
credit.
XII. PURCHASING POLICY
Purchases of goods, services and capital items will be made consistent with the annual
budget appropriations, state and federal law, the City’s Purchasing Ordinance and
Purchasing Policy and Procedure Manual (EXHIBIT C), and the Washington State
Auditor’s requirements. The City’s Purchasing Ordinance will outline the City Manager’s
spending and contracting authority. Any purchases or contracts above those authority
limits must be authorized in advance by City Council (some exceptions for public
emergencies will apply). The City Manager may delegate spending authority (within
his/her limits) to Department Heads to facilitate operating efficiency.
2020 Budget Section 5 - Page 23 of 106
Comprehensive Financial Management Policy Guidelines - Page 18 of 25
In General, the City Manager and Department Heads will purchase goods and services at
a reasonable cost, using an open, fairly documented and competitive process whenever
reasonable and possible. Actions of city employees, when purchasing supplies and
services, should be fair and impartial and not be used for personal gain or benefit.
Employees may not willfully circumvent purchasing and procurement policies and
procedures to enter into contracts, or purchase goods and services except as allowed by
state statutes.
The Finance & Administrative Services Director is charged with developing
administrative/operating procedures to implement sound purchasing policies. These
procedures will be based on guidelines provided in State Law and by the State Auditor’s
Office. All purchases made by the City will ultimately be approved by the Council
through the voucher approval process.
XIII. GRANTS MANAGEMENT POLICY
Leveraging City and community resource with external financial assistance can enhance
the quality and level of public services, facilities and infrastructure. City Policy is to seek
and accept grants and other financial assistance consistent with the City’s strategic plan.
External assistance also carries with it the goals and restrictions of the grantor. Grant
relationships are partnerships where the goals of both the City and grantor must be in
alignment. The benefits, costs and long-term implications of the partnership must be
considered prior to formal application. The City’s Grants Management Policy involves
the following steps:
Search – City department staff and officials are encouraged to actively search out and
identify potential grants which may further the City’s vision and goals, within the City’s
financial limitations.
Pre-Application – Department Directors and staff shall pursue grants within their
purchasing authority identified in City Purchasing Policies. The City Manager shall be
advised of all grant considerations over a $10,000 total.
Formal Application – Formal applications directly by the City, or indirectly by other
agencies involving the City, must fall within Departmental Purchasing levels.
All grants will seek reimbursement of direct cost departmental and City wide indirect or
administrative costs to the maximum extent allowable by the grantor.
Grants by other agencies involving the City or by the City involving other grantees must
have City Manager, or Council approval beyond the $60,000 Purchasing levels.
Award and Contract – Upon formal Notice of Grant Award (NOGA) or informal
notification, a written contract must be approved prior to any City commitment, formal or
otherwise. All grant contracts must be within the City’s Purchasing levels. Any needed
2020 Budget Section 5 - Page 24 of 106
Comprehensive Financial Management Policy Guidelines - Page 19 of 25
budget amendments for grant match not otherwise within general budget authority shall
be adopted prior to formal grant acceptance and contract signing.
Accounting and Reporting – City departments shall coordinate with Finance to assure
that grants comply with Federal, State and local requirements for timely reimbursements,
monitoring of vendors and sub recipients, as well as City Purchasing Policies. Any
notification of audit of grant programs or funds should be sent to the Director of Finance
and Administrative Services even if the audit is coordinated in another department.
Close Out – Multi-year grants shall have periodic accounting reviews not less than at the
close of each fiscal year. Upon conclusion of each grant, the Department grant manager
shall prepare a grant close-out report in coordination with the City’s Finance Department.
A complete grants management file record shall be maintained per City policy, either in
the Department, Finance or Clerk’s Office.
The City Council Adopted Federal Awards Standards, Procurement Policy and Code of
Conduct Policy for all Federal Loans and Grants on July 10, 2017. Standards for federal
awards are detailed in APPENDIX B.
APPENDIX A: INVESTMENT POLICY –
To the extent possible, funds not needed for operations should be invested in approved
investment vehicles. Investments shall be made with judgment and care, under
circumstances then prevailing, that persons of prudence, discretion and intelligence in the
management of their own affairs, not for speculation, but for investment, considering the
probable safety of their capital as well as the probable income to be derived.
The standard of prudence to be used by investments officials shall be the prudent person
standard and shall be applied in the context of managing the overall portfolio.
Investment officers acting in accordance with written procedures and the investments
policy and exercising due diligence shall be relieved of personal responsibility for an
individual’s security’s credit risk of market price changes, provided deviations from
expectations are reported in a timely fashion and appropriate action is taken to control
adverse developments.
The City will strive to maximize the return on its investments, with the primary objective
of preserving capital and prudent investment practices, including diversification.
Investments will be made in accordance with the following objectives:
1) Legality: Funds of the City will be invested in accordance with the Revised Code of
Washington (RCW), the BARS manual, these policies and any applicable administrative
procedures.
2) Safety: Investments of the City will be undertaken in a manner that seeks to ensure the
preservation of capital in the overall portfolio. To attain this objective, diversification is
2020 Budget Section 5 - Page 25 of 106
Comprehensive Financial Management Policy Guidelines - Page 20 of 25
required in order that potential losses on individual securities do no exceed the income
generated by other investments.
3) Liquidity: The City’s investments will remain sufficiently liquid to enable the city to
meet all operating requirements that might be reasonably anticipated.
4) Yield: The City’s investments will be designed with the objective of attaining a market
rate of return throughout budgetary and economic cycles, taking into account the City’s
investment risk constraints and cash flow characteristics.
The Finance & Administrative Services Director will approve financial institutions to be
eligible to conduct investment business with the City, in accordance with Washington
State Law.
The Finance & Administrative Services Director will periodically furnish the City
Manager and Council with a report that shall include the amount of interest earned to
date. At least annually, a report summarizing investment activity and rate of return will
be provided.
APPENDIX B- CITY OF PORT TOWNSEND FEDERAL AWARDS
STANDARDS, PROCUREMENT POLICY & CODE OF CONDUCT
CITY OF PORT TOWNSEND FEDERAL AWARD STANDARDS:
PURPOSE
Establish and maintain internal controls that provide reasonable assurance that Federal
awards are being managed in compliance with all federal regulations and with the terms
and conditions of the award. The City of Port Townsend will follow the Uniform
Guidance, the Local Agency Guidelines (LAG) distributed by The Washington State
Department of Transportation (WSDOT), and the City of Port Townsend’s
Comprehensive Financial Management Policy Guidelines.
INTERNAL CONTROLS
The City of Port Townsend will maintain effective internal control over the Federal
award providing reasonable assurance that the City of Port Townsend is managing
the Federal award in compliance with Federal statutes, regulations, and the terms
and conditions of the Federal award.
• Take prompt action when instances of noncompliance are identified
including noncompliance identified in audit findings.
• Take reasonable measures to safeguard protected personally identifiable
information and other information the Federal awarding agency or pass-
through entity designates as sensitive.
ADVANCE PAYMENTS AND REIMBURSEMENTS
Payment methods must minimize the time elapsing between the transfer of funds from
2020 Budget Section 5 - Page 26 of 106
Comprehensive Financial Management Policy Guidelines - Page 21 of 25
the United States Treasury or the pass-through entity and the disbursement by the City
of Port Townsend whether the payment is made by electronic funds transfer, or
issuance or redemption of checks, warrants, or payment by other means.
• Advanced payments must be limited to the minimum amounts needed and be
timed to be in accordance with the actual, immediate cash requirements of the
City of Port Townsend to carry out the purpose of the approved program or
project. Any advanced payments must be consolidated to cover anticipated
cash needs.
• The City of Port Townsend shall minimize the time elapsed between receipt of
federal aid funds and subsequent payment of incurred costs.
ALLOWABLE COSTS
Federal awards will meet the following general criteria to be allowable except where
otherwise authorized by statute:
• Be necessary and reasonable for the performance of the Federal award;
• Conform to any limitations or exclusions set forth in these principles or in
the Federal award as to types or amount of cost items;
• Be consistent with policies and procedures that apply uniformly to both
Federally- financed and other activities of the City of Port Townsend;
• Be accorded consistent treatment;
• Not be included as cost or used to meet cost sharing or matching
requirements of any other Federally-financed program in either the current
or a prior period;
• Be adequately documented.
PROCUREMENT
When procuring property and services under a Federal award, the City of Port
Townsend will follow 2 CFR §200.318 General procurement standards through
§200.326 Contract provisions or City of Port Townsend purchasing procedures
whichever is more restrictive. The following table outlines procurement requirements
when using Federal funds.
Procurement
Method
Goods Services
Micro-Purchase - No
required quotes. However,
must consider price as
reasonable, and, to the
extent practical, distribute
equitably among
suppliers.
$5,000 or less
Must use more
restrictive City
threshold instead of
$10,000 federal
threshold
$5,000 or less
Must use more
restrictive City threshold
instead of $10,000
federal threshold
Small Purchase
Procedures
$5,000 - $40,000
(Single trade); $3,000 -
$5,000 - $40,000 (Single
trade); $5,000 - $65,000
2020 Budget Section 5 - Page 27 of 106
Comprehensive Financial Management Policy Guidelines - Page 22 of 25
(Informal) - Obtain/
document quotes
from a reasonable number
of qualified sources (at
least three).
$65,000 (Multi trade);
$5,000 - $50,000
(Non-Public Works
projects)
Must use more
restrictive City
threshold instead of
$250,000 Federal
threshold
(Multi trade); $5,000 -
$50,000 (Non- Public
Works projects)
Must use more
restrictive City threshold
instead of $250,000
Federal threshold
Sealed Bids / Competitive
Bids (Formal)
$40,000 or more (Single
trade); $65,000 or more
(Multi trade); $50,000
or more (Non-Public
Works Projects)
Must use more
restrictive City
threshold instead of
$250,000 Federal
threshold
$40,000 or more (Single
trade); $65,000 or more
(Multi trade); $50,000 or
more (Non-Public
Works Projects)
Must use more
restrictive City
threshold instead of
$250,000 Federal
threshold
Competitive proposals Used when conditions are not appropriate for the use
of sealed bids.
• Must publicize request for proposals
soliciting from an adequate number of
qualified sources
• Maintain written method for conducting
technical evaluations
• Contract must be awarded to the responsive
and responsible firm
whose proposal is most advantageous to the
program
Non-competitive proposals Appropriate only when:
• Available only from a single source; or
• Public emergency; and
• Expressly authorized by awarding or pass-
through agency in response to written request
from the City of Port Townsend; or
• After soliciting a number of sources, competition
is deemed inadequate.
Contracts for more than the simplified acquisition threshold currently set at $250,000
must address administrative, contractual, or legal remedies in instances where
contractors violate or breach contract terms, and provide for such sanctions and
penalties as appropriate.
2020 Budget Section 5 - Page 28 of 106
Comprehensive Financial Management Policy Guidelines - Page 23 of 25
Contracts and sub-grants of amounts in excess of $250,000 require that the City of Port
Townsend will comply with all applicable standards, orders or regulations issued
pursuant to the Clean Air Act and the Federal Water Pollution Control Act.
The City of Port Townsend will monitor procurements to avoid duplicative purchases,
and exhaust all mandated sources before soliciting new sources. The City wil l also
continue to enter into inter-entity agreements to realize cost savings for shared goods
and services when possible.
The City will verify and document that vendors are not suspended or debarred from
doing business with the Federal government.
SINGLE AUDIT ACT
The City of Port Townsend, as a recipient of Federal funds, shall adhere to the Federal
regulations outlined in 2 CFR §200.501 as well as all applicable Federal and State
statutes and regulations.
CLOSURE
A project agreement end date will be established in accordance with 2 CFR §200.309. Any
costs incurred after the project agreement end date are not eligible for Federal
reimbursement.
2020 Budget Section 5 - Page 29 of 106
Comprehensive Financial Management Policy Guidelines - Page 24 of 25
CITY OF PORT TOWNSEND CODE OF CONDUCT:
PURPOSE
The purpose of the Code of Conduct is to ensure the efficient, fair and professional
administration of federal grant funds in compliance with 2 CFR §200.112, 2 CFR
§200.318 and other applicable federal and state standards, regulations, and laws.
APPLICATION
This Code of Conduct applies to all elected officials, employees or agents of the City
of Port Townsend engaged in the award or administration of contracts supported by
federal grant funds.
REQUIREMENTS
No elected official, employee or agent of the City of Port Townsend shall participate in
the selection, award or administration of a contract supported by federal grant funds if
a conflict of interest, real or apparent, would be involved. Such a conflict would arise
when any of the following has a financial or other interest in the firm selected for
award:
• The City employee, elected official, or agent; or
• Any member of their immediate family; or
• Their partner; or
• An organization which employs, or is about to employ any of the above.
The City of Port Townsend's elected officials, employees or agents shall neither
solicit nor accept gratuities, favors, or anything of monetary value from contractors,
potential contractors or subcontractors.
REMEDIES
To the extent permitted by federal, state or local laws or regulations, violation of these
standards may cause penalties, sanctions or other disciplinary actions (up to and
including employment or contract termination) to be taken against the City of Port
Townsend's elected officials, employees or agents, or the contractors, potential
contractors, subcontractors or their agents. Any potential conflict of interest will be
disclosed in writing to the Federal awarding agency or pass-through entity in
accordance with applicable Federal awarding agency policy.
2020 Budget Section 5 - Page 30 of 106
EXHIBIT A
Fleet Equipment Rental & Replacement Fund and
Fleet Operations & Maintenance Fund
Policy
November 2018
2020 Budget Section 5 - Page 31 of 106
Page 2 of 8
I.Table of Contents
II.Overview ............................................................................................................................................... 3
A.Purpose: ............................................................................................................................................ 3
B.General Policy: .................................................................................................................................. 3
C.Funds Purpose: .................................................................................................................................. 3
D.Services: ............................................................................................................................................ 3
III.Replacement Reserve Management ................................................................................................. 4
A.Donation of Equipment to FERRF: .................................................................................................... 4
B.Replacement Reserves for FERRF Owned Equipment: ..................................................................... 4
C.Prohibited uses of Reserves: ............................................................................................................. 4
D.Purpose and Uses of Reserves: ......................................................................................................... 4
IV.Replacement Rules............................................................................................................................ 5
A.FERRF Owned Assets: ........................................................................................................................ 5
B.Useful Life: ........................................................................................................................................ 5
C.Acquisition and Disposal of Assets: ................................................................................................... 5
V.Operations & Maintenance................................................................................................................... 6
A.Maintenance Rates: .......................................................................................................................... 6
B.Maintenance and Services: ............................................................................................................... 6
VI.Appendix ........................................................................................................................................... 6
A.Acronyms: ......................................................................................................................................... 6
1.ERRC - Equipment Rental & Replacement Committee ................................................................. 6
2.FERRF – Fleet Equipment Rental & Replacement Fund ................................................................ 6
3.FOMF - Fleet Operations & Maintenance Fund ............................................................................ 6
B.Roles and Responsibilities: ................................................................................................................ 6
1.Operating Departments ................................................................................................................ 6
2.Public Works Department: Fleet Services ..................................................................................... 7
3.Public Works Department: ERRC .................................................................................................. 7
4.Finance Department ..................................................................................................................... 7
5.Leadership Team ........................................................................................................................... 8
6.City Council ................................................................................................................................... 8
C.Chronology of Significant Events: ..................................................................................................... 8
D.Common Audit Issues shared by the State Auditor’s Office: ............................................................ 8
2020 Budget Section 5 - Page 32 of 106
Page 3 of 8
II.Overview
A.Purpose:
The purpose of this document is to establish and specify the City of Port Townsend’s (City) policy
governing asset and fund management, including rental, replacement, and maintenance
services for motorized vehicles and wheeled equipment (Fleet) (See separate policy for I.T.
Equipment Rental & Replacement and I.T. Operations & Maintenance).
B.General Policy:
1.It is the policy of the City to provide for centralized management of its Fleet. Management
activities include fund management and asset purchase, rental, maintenance and repair,
replacement and disposal.
2.The City Manager has delegated responsibility for implementing the provisions of this policy
to the Public Works Department. The Public Works Department in collaboration with the
Finance Department shall be responsible for ensuring uniform application and
interpretation of the policy. Proposed exceptions to the policy will be considered for
maximum benefit of the City.
3.The Public Works Department shall be responsible for planning, directing, managing,
coordinating and supervising programs for the acquisition, assignment, maintenance and
repair, rental, replacement and disposal of the City Fleet. To provide for administrative ease
and operational flexibility this responsibility is further delegated to the Equipment Rental &
Replacement Committee (ERRC), which consists of the Public Works Director, Public Works
Operations Manager, a representative of the Finance Department, and up to two at-large
city employee members.
C.Funds Purpose:
The purpose of the Fleet Equipment Rental & Replacement Funds (FERRF) and the Fleet
Operations & Maintenance Fund (FOMF) is to manage replacement and maintenance funds to
ensure sufficient monies are available when needed. This allows the City to focus on using
maintenance and efficiency indicators when making asset equipment replacement decisions.
Additionally, FERRF is designed to rent FERRF owned equipment to other funds.
D.Services:
The FERRF and FOMF are designated as an Internal Service Fund with three major functions. The
Replacement function supports the process to provide for replacement of assets. The
Administration function supports asset and operations management. The operations function
supports maintenance, fuel, motor pool, and intergovernmental activities.
2020 Budget Section 5 - Page 33 of 106
Page 4 of 8
III. Replacement Reserve Management
A. Donation of Equipment to FERRF:
Departments that participate in replacement will donate all eligible assets to its own FERRF,
where they will be considered FERRF owned Assets.
B. Replacement Reserves for FERRF Owned Equipment:
During the budget process, the ERRC will establish reserves for the replacement of assets.
1. Replacement charges are generally calculated based on each individual asset’s original cost,
its useful life, salvage value, the regional inflationary rate, and the anticipated replacement
value. Replacement rates are sometimes adjusted for special purposes. All charges will be
accumulated in the FERRF. A calculation model, such as the Excel model provided by FCS
Group, shall be used to track each individual asset and determine the appropriate
replacement charge.
2. Capital additions made to increase the asset’s useful life will be added to the total cost of
the asset, and the replacement calculation will be recomputed over the new useful life of
the asset.
3. Replacement rates may be adjusted when the useful life of an asset is changed, or the cost
of the replacement asset is significantly higher or lower than the norm.
4. Assets acquired for service by means other than purchase (e.g. lease) will have a
replacement rate established like a purchased asset and will require Finance approval for
replacement at the time of acquisition.
C. Prohibited uses of Reserves:
1. FERRF replacement reserves will not be used to fund construction projects, purchase non-
capital equipment (unless part of a system), or purchase capital items that are not
authorized to have a replacement schedule.
2. FERRF replacement reserves will not be permanently transferred to other funds unless
directed by Council.
D. Purpose and Uses of Reserves:
The FERRF is designed to ensure replacement of an asset with a “like” item. The FERRF exists to
accumulate monies based on the replacement cost of an asset.
1. True-up Process: During the semi-annual review process the annual reserve need will be re-
evaluated, compared with the actual annual reserve contributions, and any excess/deficit
will be refunded to or contributed by the appropriate fund as required. If the new estimate
is within 5% (+/-) of the actual annual reserve contribution, then no action is required.
2. Like-for-Like Baseline: When computing funds available for replacement, the ERRC
determines the estimate by comparing the equipment being replaced to an identical piece
of equipment in today’s marketplace.
2020 Budget Section 5 - Page 34 of 106
Page 5 of 8
3. Equipment Improvements: If there are changes in equipment technology that either make
the old asset obsolete, antiquated or not match generally accepted industry trends, this will
be considered a like-for-like replacement.
4. Upgrades: New equipment technology that is not an Equipment Improvement will be
considered an upgrade. Upgrades are acceptable if there is enough money available using
the like-for-like formula. If there is a need for additional funds, the department must fund
the difference with their department’s budget.
5. Rebuilds: There is an option to use the FERRF monies to rebuild equipment if it extends the
useful life and it is more cost-effective than the replacement option.
6. Legal and Safety Requirements: If a mandated legal or safety requirement occurs and there
is a cost increase, the department must fund with their department’s operating budget.
7. Early Replacement: If it is determined by the ERRC that an asset has failed before the end of
its useful life, the FERRF will pay for this (pending availability of funds). To collect the
shortfall, an increased rate of replacement, which will include the funds still to be collected
on the original asset, shall be charged on the newly replaced asset.
8. Combining Assets or Obtaining Multiple Assets: It is permissible to combine assets to obtain
a single asset or to obtain more than one asset when replacing a single asset. In both cases,
if there is a shortage of funds (based on the like-for-like formula), the department must fund
the difference from their department’s operating budget.
IV. Replacement Rules
A. FERRF Owned Assets:
All assets placed in the FERRF must have the following basic criteria as determined by the ERRC.
The ERRC can change the minimum criteria to match the City’s standards and approve
exceptions on a case-by-case basis. These criteria must be met to have a replacement schedule
created:
1. Useful life be more than two years.
2. Minimum individual value is $10,000. Please note that this value may change from time to
time to account for inflation.
3. Asset must be a motorized vehicle or a wheeled piece of equipment.
B. Useful Life:
The useful life is established based on industry standards and the normal life expectancy of
similar assets. Asset classes generally affect large groups of similar assets; however, special
applications and unique items may have separate lives. Normally the useful life is changed
when actual average disposal age deviates by more than one year at replacement. Useful life
can also be changed because of technological changes or ERRC determination.
C. Acquisition and Disposal of Assets:
The ERRC reviews all assets to determine those that should be replaced, retained or disposed of.
The ERRC meets with the operating departments to agree on the selection of items to be
2020 Budget Section 5 - Page 35 of 106
Page 6 of 8
replaced and to discuss new acquisitions. The formal budget approval for acquisition of assets
occurs when Council approves the budget and disposal of assets must follow the City’s Disposal
and Surplus Policy.
V. Operations & Maintenance
A. Maintenance Rates:
The ERRC will establish rates for various operational costs and services provided by the
approved budget of the Fleet Services operations. A separate fund will be used to account for
maintenance operation charges. All departments will share one FOMF.
1. FOMF maintenance rates will be established to recover 100% of the actual direct and
indirect costs (e.g. Salaries, operational expenses, inventory, fuel, etc.). Rates will be
adjusted during the budget process and mid-year review based on the fund balance if
revenue exceeds or is below needs.
2. Each department, including departments not participating in the FERRF will be direct
charged based on the actual maintenance and repair costs tracked by Fleet Services plus an
indirect cost allocation calculated by the model.
B. Maintenance and Services:
Fleet Services will maintain all FERRF assets except specialty equipment that has specifically
been delegated to other departments. Fleet Services may perform maintenance and provide
services on equipment not assigned to FERRF.
1. Fleet Services will track all direct costs of repairs for each individual asset including fuel and
outside repairs. These costs will be used to determine each department’s portion of the
maintenance & operations annual charge.
VI. Appendix
A. Acronyms:
1. ERRC - Equipment Rental & Replacement Committee
2. FERRF – Fleet Equipment Rental & Replacement Fund
3. FOMF - Fleet Operations & Maintenance Fund
B. Roles and Responsibilities:
1. Operating Departments
a) Work with the ERRC to identify FERRF asset needs and provide all pertinent information
for any asset owned and maintained by the FERRF and FOMF. This is particularly
important for specialty equipment.
b) Assist in identifying cost increases in existing equipment that exceeds inflation. Working
with the ERRC to develop budgetary proposals ensuring proper funds are available in
FERRF and FOMF.
c) Provides prudent use, care, and stewardship of FERRF owned assets.
2020 Budget Section 5 - Page 36 of 106
Page 7 of 8
d) Manages all non-owned FERRF equipment.
e) Provides feedback on asset management policies.
2. Public Works Department: Fleet Services
a) Manages all FERRF assets in accordance with this policy.
b) Manages the budget and financial operations of the FERRF and FOMF.
c) Maintains all titles for City owned licensed vehicles and equipment.
d) Prepares the asset replacement plan and recommends new purchases.
e) Prepares purchase requisitions for all new FERRF assets.
f) Represents Fleet Services on the operating budget and financial issues.
3. Public Works Department: ERRC
a) Establishes and administers the funds policies in collaboration with the Finance
Department.
b) Manages all FERRF assets in accordance with this policy.
c) Determines equipment that will be maintained by FOMF.
d) Establishes the useful life, replacement schedules and rates for all asset classes, and
makes changes to the useful life based on actual experience.
e) During the budget process develops FERRF and FOMF financial plans for the budget
period.
f) Sets maintenance, replacement, and estimated fuel charges to user departments.
g) Works with the Finance Department to estimate reserve needs, compare them with
actual annual reserve contributions, and determines if there is any excess/deficit to be
refunded to or contributed by the appropriate fund as required. If the new estimate is
within 5% (+/-) of the actual annual reserve contribution, then no action is required.
h) Determines when surplused assets are retained and rented beyond their expected
disposal date.
i) Provides financial services to Fleet Services including assistance in the development and
review of financial policies, budgets and rates.
j) Assists the Fleet Services manager in budget monitoring.
4. Finance Department
a) Working with the ERRC establishes and administers the funds policies.
b) Analyzes and makes recommendations to the Leadership Team on FERRF and FOMF
financial plans for the budget period, including: asset replacement plan, proposed new
asset purchases, and total charge allocations by department.
c) Works with the ERRC to analyze reserve needs, compares them with actual annual
reserve contributions, and determines if there is any excess/deficit to be refunded to or
contributed by the appropriate fund as required. If the new estimate is within 5% (+/-)
of the actual annual reserve contribution, then no action is required.
d) Processes FERRF and FOMF department billings and prepares FERRF and FOMF financial
statements.
e) Ensures City property and equipment is disposed of in accordance with State and City
regulations.
2020 Budget Section 5 - Page 37 of 106
Page 8 of 8
f) Invests fund money in accounts for interest in accordance with the City’s Financial
Policy.
5. Leadership Team
a) During the budget process approves the FERRF and FOMF financial plans for the budget
period.
b) Approves exceptions to established policies on a case-by-case basis.
6. City Council
a) Adopts the appropriations and operating budgets for FERRF and FOMF during the
budget process.
C. Chronology of Significant Events:
1. RCW 32.21.088 address the creation and guidelines of the Equipment Rental Fund.
2. The Equipment Rental & Replacement Fund (ERRF) was created July 2, 1974 by Ordinance
No. 1712.
3. Original ERRF created by Ordinance No. 1712 is repurposed effective January 1, 2019
through Ordinance No. 3218.
4. New Fleet Equipment Rental Operating and Maintenance Fund (FOMF) effective January 1,
2019 by Ordinance No. 3218.
D. Common Audit Issues shared by the State Auditor’s Office:
1. Failure to maintain a current list of assets and lack of the performance of physical
inventories. (This is the most common condition observed.)
2. Failure to retain adequate records for support of expenditures.
3. Failure of the ER&R fund to bill departments for use of equipment and supplies.
4. Submitting replacement cost estimates for reimbursement with grant money.
2020 Budget Section 5 - Page 38 of 106
EXHIBIT B
I.T. Equipment Rental & Replacement Fund and I.T
Operations & Maintenance Fund
Policy
November 2018
2020 Budget Section 5 - Page 39 of 106
Page 2 of 8
I. Table of Contents
II. Overview ............................................................................................................................................... 3
A. Purpose: ............................................................................................................................................ 3
B. General Policy: .................................................................................................................................. 3
C. Funds Purpose: .................................................................................................................................. 3
D. Services: ............................................................................................................................................ 3
III. Replacement Reserve Management ................................................................................................. 3
A. Donation of Equipment to ITERRF: ................................................................................................... 3
B. Replacement Reserves for ITERRF Owned Equipment: .................................................................... 4
C. Prohibited Uses of Reserves: ............................................................................................................ 4
D. Purpose and Uses of Reserves: ......................................................................................................... 4
IV. Replacement Rules............................................................................................................................ 5
A. ITERRF Owned Assets: ....................................................................................................................... 5
B. Useful Life: ........................................................................................................................................ 5
C. Acquisition and Disposal of Assets: ................................................................................................... 5
V. Operations & Maintenance................................................................................................................... 6
A. Maintenance Rates: .......................................................................................................................... 6
B. Maintenance and Services: ............................................................................................................... 6
VI. Appendix ........................................................................................................................................... 6
A. Acronyms: ......................................................................................................................................... 6
1. ITERRF – I.T. Equipment Rental & Replacement Fund .................................................................. 6
2. ITOMF – I.T. Operations & Maintenance Fund ............................................................................. 6
B. Roles and Responsibilities: ................................................................................................................ 6
1. Operating Departments ................................................................................................................ 6
2. Information Technology Services Department ............................................................................. 6
3. Finance Department ..................................................................................................................... 7
4. Leadership Team ........................................................................................................................... 7
5. City Council ................................................................................................................................... 7
C. Chronology of Significant Events: ..................................................................................................... 7
D. Common Audit Issues shared by the State Auditor’s Office: ............................................................ 8
2020 Budget Section 5 - Page 40 of 106
Page 3 of 8
II. Overview
A. Purpose:
The purpose of this document is to establish and specify the City of Port Townsend’s (City) policy
governing asset and fund management, including rental, replacement, and maintenance
services for equipment related to Information Technology (I.T.) (See separate policy for Fleet
Equipment Rental & Replacement and Fleet Operations & Maintenance).
B. General Policy:
1. It is the policy of the City to provide for centralized management of its computer and I.T.
equipment. Management activities include fund management and asset purchase, rental,
maintenance and repair, replacement and disposal.
2. The City Manager has delegated responsibility for implementing the provisions of this policy
to the Information Technology Services Department. The Information Technology Services
Department in collaboration with the Finance Department shall be responsible for ensuring
uniform application and interpretation of the policy. Proposed exceptions to the policy will
be considered for maximum benefit of the City.
3. The Information Technology Services Department shall be responsible for planning,
directing, managing, coordinating and supervising programs for the acquisition, assignment,
maintenance and repair, rental, replacement and disposal of the City’s I.T. equipment.
C. Funds Purpose:
The purpose of the I.T. Equipment Rental & Replacement Fund (ITERRF) and the I.T. Operations
& Maintenance Fund (ITOMF) is to manage replacement and maintenance funds to ensure
sufficient monies are available when needed. This allows the City to focus on using
maintenance and efficiency indicators when making asset equipment replacement decisions.
D. Services:
The ITERRF and ITOMF are designated as Internal Service Funds with three major functions. The
Replacement function supports the process to provide for replacement of assets. The
Administration function supports asset and operations management. The operations function
supports maintenance and intergovernmental activities.
III. Replacement Reserve Management
A. Donation of Equipment to ITERRF:
Departments that participate in replacement will donate all eligible assets to the ITERRF, where
they will be considered ITERRF owned Assets.
2020 Budget Section 5 - Page 41 of 106
Page 4 of 8
B. Replacement Reserves for ITERRF Owned Equipment:
During the budget process, the Information Technology Services Department will establish
reserves for the replacement of assets.
1. Replacement charges are generally calculated based on the estimated cost of each
equipment category, its useful life, and the anticipated replacement value. Replacement
rates are sometimes adjusted for special purposes. All charges will be accumulated in the
ITERRF. A calculation model, such as the Excel model provided by FCS Group, shall be used
to track each individual asset and determine the appropriate replacement charge.
2. Replacement rates may be adjusted when the useful life of an asset is changed, or the cost
of the replacement asset is significantly higher or lower than the norm.
3. Assets acquired for service by means other than purchase (e.g. lease) will have a
replacement rate established like a purchased asset and will require Finance approval for
replacement at the time of acquisition.
C. Prohibited Uses of Reserves:
1. ITERRF replacement reserves will not be used to fund construction projects, purchase non-
capital equipment (unless part of a system), or purchase capital items that are not
authorized to have a replacement schedule.
2. ITERRF replacement reserves will not be permanently transferred to other funds unless
directed by Council.
D. Purpose and Uses of Reserves:
The ITERRF is designed to ensure we can replace an asset with a “like” item. The ITERRF exists to
accumulate monies based on the replacement cost of an asset.
1. True-up Process: During the semi-annually review process the annual reserve need will be
re-evaluated, compared with the actual annual reserve contributions, and any excess/deficit
will be refunded to or contributed by the appropriate fund as required. If the new estimate
is within 5% (+/-) of the actual annual reserve contribution, then no action is required.
2. Like-for-Like Baseline: When computing funds available for replacement, the Information
Technology Services Department determines the estimate by comparing the equipment
being replaced to an identical piece of equipment in today’s marketplace.
3. Equipment Improvements: If there are changes in equipment technology that either make
the old asset obsolete, antiquated or not match generally accepted industry trends, this will
be considered a like-for-like replacement.
4. Upgrades: New equipment technology that is not an Equipment Improvement will be
considered an upgrade. Upgrades are acceptable if there is enough money available using
the like-for-like formula. If there is a need for additional funds, the department must fund
the difference with their department’s operating budget.
5. Rebuilds: There is an option to use the ITERRF monies to rebuild equipment if it extends the
useful life and it is more cost-effective than the replacement option.
6. Legal and Safety Requirements: If a mandated legal or safety requirement occurs and there
is a cost increase, the department must fund with their department’s operating budget.
2020 Budget Section 5 - Page 42 of 106
Page 5 of 8
7. Early Replacement: If it is determined by the Information Technology Services Department
that an asset has failed before the end of its useful life, the ITERRF will pay for this (pending
availability of funds). To collect the shortfall, an increased rate of replacement, which will
include the funds still to be collected on the original asset, shall be charged on the newly
replaced asset.
8. Combining Assets or Obtaining Multiple Assets: It is permissible to combine assets to obtain
a single asset or to obtain more than one asset when replacing a single asset. In both cases,
if there is a shortage of funds (based on the like-for-like formula), the department must fund
the difference from their department’s budget.
IV. Replacement Rules
A. ITERRF Owned Assets:
All assets placed in the ITERRF must have the following basic criteria as determined by the
Information Technology Services Department. The Information Technology Services Department
can change the minimum criteria to match the City’s standards and approve exceptions on a
case-by-case basis. These criteria must be met to have a replacement schedule created:
1. Useful life be more than one year.
2. Minimum individual value is $500. Please note that this value may change from time to
time to account for inflation.
3. Assets such as tablets and cellular devices will not be included in the ITERRF. These assets
will be purchased directly out of the respective department’s operating budget as needed or
replaced.
B. Useful Life:
The useful life is established based on industry standards and the normal life expectancy of
similar assets. Asset classes generally affect large groups of similar assets; however, special
applications and unique items may have separate lives. Normally the useful life is changed
when actual average disposal age deviates by one year or more at replacement. Useful life can
also be changed because of technological changes or the Information Technology Services
Department’s determination.
C. Acquisition and Disposal of Assets:
Information Technology Services Department reviews all assets to determine those that should
be replaced and those that should be retained. The Information Technology Services
Department meets with the operating departments to agree on the selection of items to be
replaced and to discuss new acquisitions. Approval for acquisition of assets is decided during
the Budget process with Council’s approval and disposal of assets must follow the City’s Disposal
and Surplus Policy.
2020 Budget Section 5 - Page 43 of 106
Page 6 of 8
V. Operations & Maintenance
A. Maintenance Rates:
The Finance Department and Information Technology Services Department will establish rates
for various operational costs and services provided by the approved budget of the Information
Technology Services Department. The ITOMF will be used to account for operations and
maintenance charges.
1. ITOMF maintenance rates will be established to recover 100% of the actual direct and
indirect costs (e.g. Salaries, operational expenses, etc.). Rates will be adjusted during the
budget process and mid-year review based on the fund balance if revenue exceeds or is
below needs.
2. Each department will be charged based on the number of pieces of I.T. equipment assigned
to them in the ITERRF, along with an allocation for citywide shared equipment. The
allocation will be calculated by the model.
B. Maintenance and Services:
The Information Technology Services Department will maintain all ITERRF assets. The
Information Technology Services Department may perform maintenance and provide services
on equipment not assigned to ITERRF.
VI. Appendix
A. Acronyms:
1. ITERRF – I.T. Equipment Rental & Replacement Fund
2. ITOMF – I.T. Operations & Maintenance Fund
B. Roles and Responsibilities:
1. Operating Departments
a) Work with the Information Technology Services Department to identify ITERRF asset
needs and provide all pertinent information for any asset owned and maintained by the
ITERRF and ITOMF. This is particularly important for specialty equipment.
b) Work with the Information Technology Services Department to develop budgetary
proposals ensuring proper funds are available in the ITERRF and ITOMF.
c) Provides prudent use, care, and stewardship of ITERRF owned assets.
d) Provides feedback on asset management policies.
2. Information Technology Services Department
a) Establishes and administers the funds policies in collaboration with the Finance
Department.
b) Manages all ITERRF assets in accordance with this policy.
c) Manages the budget and financial operations of the ITERRF and ITOMF.
d) Prepares the asset replacement plan and recommends new purchases.
e) Prepares purchase requisitions for all new ITERRF assets.
2020 Budget Section 5 - Page 44 of 106
Page 7 of 8
f) Represents I.T. on the operating budget and financial issues.
g) Determines equipment that will be maintained by ITOMF.
h) Establishes the useful life, replacement schedules and rates for all asset classes, and
makes changes to the useful life based on actual experience.
i) During the budget process develops ITERRF and ITOMF financial plans for the budget
period.
j) Sets maintenance and replacement to user departments.
k) Works with the Finance Department to estimate reserve needs, compare them with
actual annual reserve contributions, and determines if there is any excess/deficit to be
refunded to or contributed by the appropriate fund as required. If the new estimate is
within 5% (+/-) of the actual annual reserve contribution, then no action is required.
3. Finance Department
a) Working with the Information Technology Services Department establishes and
administers the funds policies.
b) Analyzes and makes recommendations to the Leadership Team on ITERRF and ITOMF
financial plans for the budget period, including: asset replacement plan, proposed new
asset purchases, and total charge allocations by department.
c) Works with the Information Technology Services Department to analyze annual reserve
needs, compares them with actual annual reserve contributions, and determines if
there is any excess/deficit to be refunded to or contributed by the appropriate fund as
required. If the new estimate is within 5% (+/-) of the actual annual reserve
contributions, then no action is required.
d) Processes ITERRF and ITOMF department billings and prepares ITERRF and ITOMF
financial statements.
e) Ensures City property and equipment is disposed of in accordance with State and City
regulations.
f) Invests fund money in accounts for interest in accordance with the City’s Financial
Policy.
4. Leadership Team
a) During the budget process approves the ITERRF and ITOMF financial plans for the
budget period.
b) Approves exceptions to established policies on a case-by-case basis.
5. City Council
a) Adopts the appropriations and operating budgets for ITERRF and ITOMF during the
budget process.
C. Chronology of Significant Events:
1. RCW 32.21.088 address the creation and guidelines of the Equipment Rental Fund.
2. The Equipment Rental & Replacement Fund (ERRF) was created July 2, 1974 by Ordinance
No. 1712.
3. Original ERRF created by Ordinance No. 1712 is repurposed effective January 1, 2019
through Ordinance No. 3218.
2020 Budget Section 5 - Page 45 of 106
Page 8 of 8
4. New ITERRF and ITOMF effective January 1, 2019 with Ordinance No. 3218. All departments
will participate in the new ITERRF and ITOMF.
D. Common Audit Issues shared by the State Auditor’s Office:
1. Failure to maintain a current list of assets and lack of the performance of physical
inventories. (This is the most common condition observed.)
2. Failure to retain adequate records for support of expenditures.
3. Failure of the ER&R fund to bill departments for use of equipment and supplies.
4. Submitting replacement cost estimates for reimbursement with grant money.
2020 Budget Section 5 - Page 46 of 106
EXHIBIT C
Purchasing Policies
and
Procedures Manual
250 Madison Street
Port Townsend, WA 98368
cityofpt.us
2020 Budget Section 5 - Page 47 of 106
PURCHASING MATRIX – BID LIMITS & SIGNING AUTHORIZATION
(Always include applicable sales tax when determining dollar amounts)
Purchase of Goods &
Equipment
Bidding Process Contract and Payment
Requirements
Authorization
Under $500 No requirement Payment off signed invoice (or use
purchase card if within limits)
No contract required
Employee personal
reimbursement if approved by
supervisor
W-9
Department head or
designee
$500-$7,500 No requirement, but three
estimates recommended
May use MRSC Vendor
Roster, State contract, or
interlocal agreement
Select lowest qualified
vendor
Payment off signed invoice (or use
purchase card if within in limits)
W-9
Department head or
designee
$7,501-$15,000 Obtain three telephone
and/or written quotations
or use formal bidding
May use MRSC Vendor
Roster, State contract, or
interlocal agreement
Select lowest qualified
vendor
Purchase order if >$10,000
Requisition form & signed invoice
W-9
Department head (if
within budget
appropriations)
$15,001-$29,999 Must either:
formally bid, use
State contract, or
interlocal agreement
Select lowest qualified
vendor
Purchase order
Requisition form & signed invoice
W-9
City Manager (if
within budget
appropriations)
$30,000 or more Must either:
formally bid, use
State contract, or
interlocal agreement
Select lowest qualified
vendor
Purchase order
Requisition form & signed invoice
W-9
Council approval1
Contract and/or
invoice signed by City
Manager
2020 Budget Section 5 - Page 48 of 106
Public Works Projects Bidding Process Contract and Payment
Requirements
Authorization
$5,000 or less Required to have three
estimates
May use MRSC Small
Works Roster
Award to lowest qualified
contractor
Alternatively, may use day
labor (City staff)
Small public works contract
Insurance
W-9
Prevailing wage (Contractor may
use Combined Intent/Affidavit
Form for projects $2,500 or less)
5% retainage or retainage bond,
unless waived in advertisement by
City Manager, department head,
or designee
Performance and payment bonds,
unless waived in advertisement by
City Manager, department head,
or designee
Department head or
designee
Less than $50,000
Limited Small Public
Works process
Obtain estimates from at
least three contractors on
MRSC Small Works Roster2
Award to lowest qualified
contractor
Alternatively, may use
formal bidding or day
labor (City staff)
Small public works contract
Insurance
W-9
Prevailing wage
5% retainage or retainage bond,
unless waived in advertisement by
City Manager
Performance and payment bonds,
unless waived in advertisement by
City Manager
Contractor may choose to have
10% retainage held instead of
providing performance and
payment bonds
Purchase order (encumbrance) if
>$10,000, except capital projects
City Manager for less
than $20,000 single
trade or $35,000
multiple trades 3
Contracts over these
limits require Council
approval
Contract signed by
City Manager
$350,000 or less
Small Public Works Roster
process
Obtain estimates from at
least five contractors on
MRSC Small Works Roster
All contractors in
applicable roster category
Small public works contract
Insurance
W-9
Council approval (see
above)
Contract signed by
City Manager
2020 Budget Section 5 - Page 49 of 106
must be given opportunity
to submit estimate before
any contractor can be
solicited again
If project total is between
$250,000-$350,000, all
contractors in applicable
category must be notified
that project is being bid
Recommend bid deposits
for projects >$40,000
Alternatively, may use
formal bidding or may use
day labor (City staff) for
single trade projects
$75,500 or less and
multiple trade projects
$116,155 or less
Award to lowest qualified
contractor
Prevailing wage
5% retainage or retainage bond,
unless waived in advertisement by
City Manager 4
Performance and payment bonds
Contractor may choose to have
10% retainage held instead of
providing performance and
payment bonds for projects
$150,000 or less
Purchase order (encumbrance),
except for capital projects
approved in CIP
Projects over $350,000 Must use publicly
advertised formal bid
process
5% bid deposit required
Public works contract
Insurance
W-9
Prevailing wage 5
5% retainage or retainage bond 4
Performance & payment bonds
Purchase order [except Capital
Projects approved in CIP]
Council approval
Contract signed by
City Manager
Services [not including
Architecture &
Engineering]
Bidding Process Contract and Payment
Requirements
Authorization
Under $5,000 No requirement, but three
estimates recommended
Check requirements if
using federal funding
No contract required
Payment off signed invoice
W-9
Prevailing wages may be required
for certain services (e.g.,
landscaping)
Department head or
designee
2020 Budget Section 5 - Page 50 of 106
$5,000-$9,999 No requirement, but
recommend at least three
estimates from firms on
the MRSC Consultant
Roster
Request price quotes,
schedule, qualifications
Check requirements if
using federal funding
Contract with lowest
qualified vendor
Professional services agreement
Insurance
W-9
Purchase order (encumbrance) if
requested
Prevailing wages may be required
for certain services (e.g.,
landscaping)
City Manager
$10,000-$19,999 Request proposals or
estimates from at least
three firms on the MRSC
Consultant Roster
Request price quotes,
schedule, and
qualifications
Check requirements if
using federal funding
Contract with lowest
qualified vendor
Professional services agreement
Insurance
W-9
Purchase order (encumbrance)
Prevailing wages may be required
for certain services (e.g.,
landscaping)
Council approval 6
Contract signed by
City Manager
$20,000 or more Formal, advertised RFP or
RFQ process
recommended
Check requirements if
using federal funding
Contract with lowest
qualified vendor
Professional services agreement
Insurance
W-9
Purchase order (encumbrance)
Prevailing wages may be required
for certain services (e.g.,
landscaping)
Council approval 6
Contract signed by
City Manager
Architecture, Engineering,
Landscape Architecture,
& Surveying
Bidding Process Contract and Payment
Requirements
Authorization
Any dollar amount Must publish need for
services in advance
May use MRSC Consultant
Roster
Professional services agreement
Insurance, including professional
liability
W-9
City Manager if less
than $10,000 6
$10,000 or more
requires Council
approval
2020 Budget Section 5 - Page 51 of 106
Firms submit statement of
qualifications
Award based on
qualifications, not price
Some A/E contractor
funding agencies may
require their own contract
and/or contract language
placed int eh city contract.
Verify with funding
agency.
Purchase Order if > $10,000
1 The City Manager may sign contracts for purchase of goods greater than $30,000 if they specifically implement
the annual budget and result from the aggregation of approved budgetary programs and services for the current
year (PTMC 3.46.110(A)(1)).
2 For projects under $50,000, you may use the Limited Small Public Works process, which requires estimates from
at least three contractors on the roster.
3 The City Manager may sign public works contracts up to $65,000 for multiple trades if the contract is time-
sensitive and a delay in bringing the matter before Council would cost the City time and money.
4 Retainage is not required for federally funded transportation projects through the Federal Highway
Administration. Check grant documents for specific requirements. If the local government waives retainage, they
assume liability of contract non-payments but due retain the right of recovery from the contractor.
5 Federally funded or assisted public works projects over $2,000 require payment of Davis-Bacon wage rates
determined by the U.S. Department of Labor.
6 The City Manager may sign professional services contracts, including architectural, engineering, legal, or
consulting services, up to $25,000 if the contract is time-sensitive and delay in bringing the matter before Council
would cost the City time and money.
2020 Budget Section 5 - Page 52 of 106
Table of Contents
1.0 Introduction 1
1.1 Purpose of the Manual 1
1.2 Contact Information 1
1.3 Code of Ethics (RCW 42.23) 2
1.4 Conflict of Interest 2
1.5 Unauthorized Purchases 3
1.6 Sustainable Purchasing 4
1.7 What This Manual Covers 4
1.8 Define the Need 5
1.9 Determine the Cost 6
1.10 Determine Contract Value 6
1.11 Exemptions to the Competitive Bidding Process 7
1.12 Declared Emergency 8
2.0 New Procurement 9
2.1 Initiate a New Procurement 9
2.2 Purchases of Goods, Supplies, & Equipment 9
2.2 (a) SMALL Purchases of Goods, Supplies, & Equipment ($7,500 or less) 9
2.2 (b) INTERMEDIATE Purchases of Goods, Supplies, & Equipment ($7,501-$15,000) 10
2.2 (c) LARGE Purchases of Goods, Supplies, & Equipment ($15,001 or more) 11
2.3 Food and Beverage Purchases 12
2.4 Piggybacking (State Contracts and Interlocal Purcha sing Agreements) 14
2.5 Public Works 15
2.6 Limited Small Works 16
Process (Public Works Projects under $50,000) 16
2.7 Small Works Roster 17
Process (Public Works Projects $350,000 or less) 17
2.8 Formal, Competitive Bid 18
Process (Required for Public Works Projects over $350,000) 18
2.9 Equipment Purchases Including Installation 19
2.10 Unit Priced Contracts 20
2.11 Services 21
2.12 Purchases of Architectural & Engineering Services 23
2.13 RFPs and RFQs 24
2.14 Bid Opening Process 26
2.15 No Bids or Non-Responsive/Responsible Bids or Submittals 28
2.16 Contracting 101 29
3.0 Other Considerations 31
3.1 Rule 171 – Sales Tax Exemptions 31
3.2 Prevailing Wages 31
3.3 Retainage 33
2020 Budget Section 5 - Page 53 of 106
4.0 Contract Administration 34
4.1 Risk Management Considerations 34
4.2 Payment Options 34
4.3 Contract Execution & Administration 35
4.4 Contract Monitoring - Performance 36
4.5 Contract Monitoring - Payment 37
4.6 Amendments & Change Orders 38
4.7 Contract Close-Out & Termination 39
5.0 Surplus and Disposition of Assets 41
5.1 General Information 41
5.2 Declaring Surplus 41
5.3 Disposition of Personal Property 42
5.4 Seizure Items (RCW 69.50.505) 43
5.5 Surplus of Real Property (Land) 43
6.0 Purchasing Cards 43
6.1 Purchasing Cards as a Method of Payment 43
6.2 Purchasing Card Administration 44
6.3 Authorized Charges and Uses 45
6.4 Unauthorized Purchases 45
6.5 Returns and Exchanges 46
6.6 Account Maintenance 46
7.0 Definitions and Acronyms 47
2020 Budget Section 5 - Page 54 of 106
1
1.1 Purpose of the Manual
The Purchasing Policies and Procedures Manual guides and assists City staff
with basic procurement and contracting requirements as set forth in the City
of Port Townsend Municipal Code (PTMC) Chapter 3.46 and Washington
State statutes.
This manual establishes policy guidelines and clarifies the procedures for
purchasing supplies and materials, public works construction, and
contracting for services by the City of Port Townsend. The procedures set
forth in subsequent sections of this manual are designed to assure the
citizens, the City Council, and City administrative staff that the City is
receiving maximum value for each tax and utility dollar expended and to
ensure fiscal responsibility in the procurement process. All employees and
City representatives must follow these policies and procedures.
All references to the Revised Code of Washington (RCW) and City Ordinances
and Resolutions shall be incorporated as part of this manual, including all
future amendments. In cases where these policies conflict with any City
Ordinance or State or Federal Law or Regulations, the terms of that law or
regulation prevail. In all other cases, these policies apply.
1.2 Contact Information
Name Responsibility
Finance Director/Manager Fiscal control, policy, & budget
Finance – Accountant Grants & capital improvement
program
City Attorney/Legal Asst. Contracts and bidding process
Finance Technician III Accounts payable & vendors;
ordinary purchases of supplies,
materials, maintenance, and
equipment; surplus & disposition of
assets; purchasing cards
Sources
• City of Port Townsend
Municipal Code
• Washington State RCW’s
• Municipal Research and
Services Center
• The Bidding Book
1.0 Introduction
2020 Budget Section 5 - Page 55 of 106
2
1.3 Code of Ethics (RCW 42.23)
This section of the manual should be interpreted in tandem with the
City of Port Townsend Personnel Policy Manual Chapter 2.1 (Code of
Conduct) and PTMC Chapter 2.80. Please also refer to RCW 42.23 (Code
of Ethics for Municipal Officers – Contract Interests). A municipal officer
includes all elected officials, advisory board members, and City
employees.
City employees are expected to represent the City in a professional and
accountable manner that is courteous, helpful, and efficient.
Employees shall conduct their public and private actions and financial
dealings in a manner that shall present no conflict of interest between
the public trust and their private interest.
Actions of City employees, when purchasing supplies and services,
should be fair and impartial and not be used for personal gain or
benefit. Public employment shall not be used for personal gain, and
City employees may neither solicit, accept, nor agree to accept any
compensation, gratuity, or reward for themselves, their families, or
others that results in their personal gain or which may affect their
impartiality in making decisions on the job. Discounts or concessions
realistically available to the general population, items received that do
not result in personal gain, and samples for general City use are
examples of items that are not gratuities. Personal judgment should be
used, and questions regarding particular situations should be referred
to the employee’s supervisor or department head.
Personal gifts or gratuities that might influence or give the appearance
of influencing purchases of goods or services must be declined.
Employees may not willfully circumvent purchasing and procurement
policies and procedures to enter into contracts or purchase goods and
services. Any contract made in violation of this policy manual, City
code, or State statutes will be considered null and void, and the
employee or officer may be subject to discipline or dismissal. Willful
disregard of these policies and statutes when purchasing goods and
services may also be subject to discipline and/or dismissal from service.
Please see PTMC 2.80.060 (Penalties) for reference.
1.4 Conflict of Interest
No City staff or Council member may undertake consulting, professional
practice, or other assignments that would result in a conflict of interest. Any
2020 Budget Section 5 - Page 56 of 106
3
City employee or Council member who recommends or approves a purchase
and has any financial interest in the firm involved in the purchase shall
disclose his or her interest prior to recommending or approving the
purchase.
No city staff or Council member may participate in the selection, award, or
administration of a contract supported by a Federal award if they have a real
or apparent conflict of interest. Such a conflict of interest would arise when
the City employee or Council member, any member of their immediate
family, their partner, or an organization which employs or is about to employ
any of the parties indicated herein, has a financial or other interest in or a
tangible personal benefit from a firm considered for a contract. Any willful
violation will be subject to disciplinary action according to PTMC 2.80.060.
1.5 Unauthorized Purchases
PURCHASES FOR PERSONAL USE ARE NOT ALLOWED. The person
ordering the unauthorized and unjustified purchase is personally liable
for the costs of the purchase or contract and may be subject to
disciplinary action, up to and including termination of employment. If
the purchase was made without proper authorization but is in fact a
justified purchase, then the department head has the option to
approve the purchase after the fact.
When representing the City through purchasing goods and services,
employees are prohibited from doing the following:
• “Bid Splitting” – A capital (public work) project means a
complete project. The project may not be split into units or
classes of work to avoid the restriction on work that may be
performed by day labor or other bid rules.
• Purchase breakup – Purchases that exceed authorization limits
or exceed the quote requirements should not be split up to
circumvent the purchasing policies and procedures.
• Purchasing alcohol or personal entertainment goods and
services.
• Generating a purchase order. Only the Legal Department or
Finance Department have the authority to generate a purchase
order (encumbrance).
• Purchasing controlled commodities without prior approval
including the following:
o Cell phones, telephone equipment, pagers, etc.
o Computers and related equipment, fax machines,
printers, scanners, copiers, software, or systems
2020 Budget Section 5 - Page 57 of 106
4
o Anything that IT staff is requested or required to install,
connect, service, maintain, or support
o Anything purchased using Equipment Rental and
Revolving Funds
o Using a City-issued purchase card for cash advances or
professional services
1.6 Sustainable Purchasing
The City shall acquire its goods and services in a manner that complies
with all federal, State, and City laws and other requirements (e.g., City
resolutions).
Environmental factors to consider in selecting products include:
• Pollutant releases, especially persistent bio-accumulative toxins
(PBTs)
• Waste generation
• Greenhouse gas emissions
• Recycled content [recommend using 30% recycled paper]
• Energy consumption
• Depletion of natural resources
• Potential impact on human health and the environment
Social equity factors that should be considered include but are not
limited to:
• Use of local businesses when allowable under bid rules
• Use of small, minority, and women-owned businesses
• Ergonomic and human health impacts
Fiscal factors to be considered include but are not limited to:
• Lowest total cost
• Leveraging our buying power
• Impact on staff time and labor
• Long-term financial/market changes
• Technological advances in a rapidly changing market
1.7 What This Manual Covers
The process of selecting vendors and managing contracts sh all embody
the value of stewardship of public resources by providing the greatest
levels of both quality and value.
The goals are to ensure that the purchase process:
Speaking the Same
Language
The following terms are often
used interchangeably. We
typically use these terms as
described below:
Purchasing, Procurement
Purchasing is the act, function
and responsibility for the
acquisition of equipment,
materials, supplies and services.
The term describes the process
of buying.
Procurement includes all
functions that pertain to the
acquisition, including description
of requirements, selection and
solicitation of sources,
preparation and award of
contract and all phases of
contract administration.
2020 Budget Section 5 - Page 58 of 106
5
• Practices ethical behavior and conduct: Create purchasing
processes that are fair, open, and at least cost of public funds.
• Obtains value with public funds: Purchase goods and services
that are fiscally responsible, reduce resource consumption and
waste, perform adequately, promote advantages to lessor
advantaged segments of the community, and promote health and
well-being.
• Acts with integrity and ensures open and effective
communication: Be impartial in fact, as well as in appearance.
From Start to Finish…
Before any purchase is made, the following questions should be
answered:
• Define the need – What kind of purchase is this?
• Determine the cost – How much will it cost?
• Process – How do I procure it?
• Protecting the City – How do we properly protect the City from
liability?
• Authority – Who must approve it?
• Contract administration – What are my responsibilities?
1.8 Define the Need
The first question that should be answered is “What type of purchase is
this?” The major categories of purchases include:
Public Works: (RCW 39.04.010)
Includes all work, construction, alteration, repair, or improvements other
than ordinary maintenance executed at the cost of the City:
Examples: demolition, remodeling, renovation, road construction, building
construction, and utilities construction.
Ordinary maintenance is generally considered to include work not
performed by contract and performed on a regular basis to service, check,
or replace items that are not broken. For purposes of prevailing wage
Speaking the Same
Language
The following terms are often
used interchangeably. We
typically use these terms as
described below:
Vendor, Contractor, and
Consultant:
Vendor is typically used when
referring to a supplier of goods,
materials, or supplies.
Contractor is typically used when
referring to a construction or
maintenance company. Can also
apply to an individual or business
having a contract with the City.
Consultant is typically used when
working on a Professional Service
Contract. The term means a
person with education and/or
experience which uniquely
qualifies them to perform some
specialized services.
2020 Budget Section 5 - Page 59 of 106
6
requirements, public works includes ordinary maintenance when performed
by contract. See Section 3.2.
Materials, Supplies, and Equipment:
Materials, supplies, and equipment are considered tangible items, which are
manufactured and are moveable at the time of purchase. It is important to
distinguish materials, supplies, and equipment used in public works
contracts from those in non-public works contracts, as different bidding
requirements apply to each.
Examples: office supplies, off-the-shelf software, hardware, trucks, copy
machines, auto parts, gravel, janitorial supplies, food, and beverages.
Services:
Distinguishing between services and public works is important, as services
have different bidding requirements. Services require the labor, time, or
effort of a human being and can include intellectual or physical work.
Examples: accountants, attorneys, elevator maintenance, instructors,
technology consulting, engineers, and land surveyors.
1.9 Determine the Cost
Once the need has been defined, the estimated cost of the goods or services
will generally determine what competitive selection process you follow.
Estimated project costs for competitive bidding purposes must include:
• All construction-related work (except for engineering or
architectural design fees)
• All phases of the project
• Any permitting costs of the project
• All labor and materials required for the project
• All applicable sales and use taxes
The cost estimate should not include donated materials, labor, supplies, etc.
1.10 Determine Contract Value
Contract value refers to the total aggregate value of the contract, including
potential renewal periods. Examples of contract value are as follows:
• Example #1: A three-year contract for $40,000 per year is
considered a $120,000 contract.
• Example #2: A one-year, $8,000 professional services contract is
renewed for an additional year at $8,000. The aggregate value of
Speaking the Same
Language
The following terms are often
used interchangeably. We
typically use these terms as
described below:
Bid, Estimate/Quote, Proposal
Bid is an offer submitted by a
contractor or vendor in response
to an invitation to bid (ITB) or
advertisement
Estimate or quote is a statement
of prices, terms of sale, and
description of goods or services
offered by a vendor or contractor
to the City. Commonly used in
more informal solicitations.
Proposal is the document
submitted by the offeror in
response to an RFP/RFQ.
Proposals allow contract award
based on factors other than cost
and may result in negotiations.
2020 Budget Section 5 - Page 60 of 106
7
the contract becomes $16,000, which requires City Council
approval.
1.11 Exemptions to the Competitive Bidding Process
Exemptions to this policy must be approved in writing by the City Manager
when within his or her signing authority; otherwise, exemptions shall be
approved by City Council. Exemptions should make good business sense and
be in the best interest of the City. In all cases, it is the City’s responsibility to
conduct a good faith review of all available providers.
Exemptions to competitive bidding requirements as provided in RCW
39.04.280(1) and PTMC 3.46.090:
Type Examples and Notes
Sole source
• Licensed or patented goods or services
• Specialized items that are compatible with
existing equipment or systems (i.e. water
treatment plant filters)
• Meets City standards (i.e. meters)
• Factory-authorized warranty services
• Meets a specialized need of the City
Purchases involving
special facilities or
market conditions
• Items of special design, shape, or manufacture
that match or fit existing equipment, inventory,
systems, programs, or services
• Items offered at highly favorable price that will
be sold before City can follow bidding process
Auctions, closeout, &
bankruptcy sales
• Only when items can be purchased below
market cost
Emergency purchases
or public works
• See Section 1.12
Purchases of insurance
or bonds
• Competitive bidding is not required for insurance
or bond purchases
Real property
• The City Manager, upon approval by City
Council, may proceed to acquire real property
through negotiation
• Negotiations must be based upon an
independent appraisal of the property
• The City will not pay more than market value
• If purchased with federal funds, the acquisition
shall comply with the Uniform Real Property
Acquisition and Relocation Assistance Act of
1970, as amended
Surplus property (RCW
39.33.010)
• The City may by agreement acquire, sell, or
exchange surplus property to or from another
government without the use of bids
Acronyms
SOQ – Statement of
Qualifications
RFQ – Request for Qualifications
RFP – Request for Proposal
ITB – Invitation to Bid (Formal
Bid)
ITQ – Invitation to Quote (Small
Works)
MWDBE – Minority, Women,
and Disadvantaged Business
Enterprise
CIP – Capital Improvement Plan
2020 Budget Section 5 - Page 61 of 106
8
Interlocal agreements
(Piggybacking)
(RCW 39.34.030)
• See Section 2.4
Exemption Process:
Complete a written request to the City Manager or City Council (depending
on signing authority) explaining why this option is the only option, makes
good business sense, and is in the best interest of the City. Explain what
features, knowledge, or qualifications the vendor can provide that are not
available from other sources. Outline steps taken to verify that this is the
only vendor available, which could include:
(1) internet search
(2) calls to vendors or contractors on MRSC rosters
(3) advertisement in paper with a “Notice of Intent to Contract”
(4) advice from expert consultant in service area
This request should be signed by the requestor. Use the Sole Source
Justification Form if applicable.
1.12 Declared Emergency
For purposes of this section “emergency” means unforeseen circumstances
beyond the control of the City that either: (a) present a real, immediate
threat to the proper performance of essential functions, or (b) will likely
result in material loss or damage to property, bodily injury, or loss of life if
immediate action is not taken. Competitive bidding may be waived subject
to the following process:
1. Staff (usually a department head) identifies an urgent need and
requests that the City Manager declare an emergency.
2. Upon approval from the City Manager, the department authorizes
work and/or equipment procurement required to address the
emergency.
3. Department drafts a memorandum explaining the basis for the
emergency and the selection of the particular vendor. This
memorandum should be included in the contract file.
4. Request that the Legal Department draft a contract.
5. Department schedules the contract award on next City Council
agenda. City Attorney and department head prepare materials
necessary to ratify the emergency declaration finding.
Tips & FAQs
Q: The garage door at Public
Works is stuck closed. The door
must be fixed immediately. What
do we do?
A: Although this is an urgent
need, it does not present a real,
immediate threat to life or
property, so regular contracting
processes must be followed. The
Legal Department can assist with
developing a contract quickly
once a contractor has been
chosen.
Q: Our City water tank has been
badly damaged and water
pressure is threatened. Is this an
emergency?
A: This is not a natural disaster,
but does “present a real,
immediate threat” and makes
competitive bidding impractical.
This would be treated as a
declared emergency. Follow the
declared emergency process.
Note: Emergencies involving
FEMA reimbursements or work
in critical areas may have
different or additional
requirements. Please contact the
City Attorney or Finance
Department for assistance with
either emergency.
2020 Budget Section 5 - Page 62 of 106
9
2.1 Initiate a New Procurement
The City makes many small and large purchases over the course of the year
and must comply with State and local laws for each type of procurement,
based on type of work, dollar limits, and level of risk involved.
See the matrix at the beginning of this manual for a summary of the types
of new procurements typically performed at the City of Port Townsend.
City staff may also initiate new procurements through purchasing card
purchases (see Section 6.0) and by requesting reimbursement for
purchases made with the employee’s personal funds. It is recommended
that employees use a purchasing card for small purchases whenever
practicable and allowed by City policy.
2.2 Purchases of Goods, Supplies, & Equipment
2.2 (a) SMALL Purchases of Goods, Supplies, &
Equipment ($7,500 or less)
Small purchases of goods, supplies, materials, and equipment $7,500 or less
can be made using one of the following processes:
Process Dollar Limit Allowed Uses Non-Allowed Uses
Purchasing Card (see
Section 6.0)
It is strongly recommended
you use a City purchasing
card vs. personal credit card
All receipts must be retained
and turned into supervisor
for approval.
Contact
Finance if you
need to know
your limits.
Sample limits:
$500 single
purchase;
$1500
monthly billing
cycle limit
Exceptions may
be made with
the Finance
Director’s
approval
Business-related
purchases of
goods and
services (i.e.,
subscriptions,
seminars, meeting
supplies,
maintenance,
repair,
operations, office
supplies,
computer
peripherals,
software
subscriptions)
Alcohol, capital
equipment, cash
advances, consulting
services, personal
items, professional
services, meals while
traveling
2.0 New Procurement
Tips & FAQs
Tax revenue from purchases:
The City may factor in tax
revenues generated by a
purchase of supplies, materials,
and equipment, including those
from local sales tax or from gross
receipts business and occupation
tax. If these tax revenues are
considered, the City must
consider the taxes it would
receive from suppliers located
both within and without its
boundaries (RCW 39.30.040).
Preference for recycled products:
The City may allow for
preferential purchase of products
made from recycled materials or
products that may be recycled or
reused (RCW 39.30.040).
2020 Budget Section 5 - Page 63 of 106
10
Although there are no bidding requirements for goods purchases between
$500 and $7,500, it is recommended that City staff obtain estimates from
three vendors, preferably off the MRSC Vendor Roster. Staff may also use a
State contract or interlocal agreement (“piggybacking”). The applicable
department head or designee has invoice signing authority.
Purchases of goods under $500 do not require quotes, but staff may solicit
estimates from the MRSC Vendor Roster or use a State contract or interlocal
agreement (“piggybacking”). The applicable department head or designee
has invoice signing authority.
All payments made by a check issued by the Finance Department require a
W-9 from the vendor.
2.2 (b) INTERMEDIATE Purchases of Goods, Supplies, &
Equipment ($7,501-$15,000)
Purchases of goods, supplies, materials, and equipment from $7,501 to
$15,000 should be made using a purchase order if over $10,000 and a vendor
invoice for payment. Purchases in this category could also be made using a
State contract, interlocal agreement, or formal sealed bidding.
Employees may not use a purchase card or personal payment for
reimbursement unless previously approved by their department head and
within card limits.
When making purchases from $7,501 and $15,000, staff should obtain at
least three telephone or written quotations from vendors on the MRSC
Personal/employee
Reimbursement
Up to $1,000
Personal credit
card use must
be approved by
dept. head.
Incidentals such
as postage, ferry
tolls, parking fees,
hotel fees, CDL
license, etc.
Regular business-
related goods and
services
Vendor Invoice
All invoices MUST be
addressed and/or shipped
to the City of Port
Townsend and have an
invoice number, date of
purchase, and description
of item purchased.
$7,500
Contracted
supplies
Goods at low risk
and not otherwise
covered under a
contract or
purchase order
Capital expenditures
Tips & FAQs
When purchasing
telecommunications and data
processing (computer)
equipment or software, the City
may follow a “competitive
negotiation” process as an
alternative to the bid process
(RCW 39.04.270). This process
requires, at a minimum:
• A request for proposals (RFP)
published in the newspaper
of general circulation at least
13 days before the
submission deadline.
• The RFP identifies significant
evaluation factors, including
price, and their relative
importance.
• The City provides reasonable
procedures for technical
evaluation of the proposals,
identification of qualified
sources, and selection for
awarding the contract.
• The award must be made to
the qualified bidder whose
proposal is “most
advantageous” to the City.
The City may reject all
proposals for good cause and
request new proposals.
2020 Budget Section 5 - Page 64 of 106
11
Vendor Roster. The applicable department head has invoice signing
authority.
A purchase order or written agreement may be required. Check with the
Finance Department for additional requirements.
All purchases in this category require a W-9 from the vendor.
2.2 (c) LARGE Purchases of Goods, Supplies, &
Equipment ($15,001 or more)
Per RCW 35.23.352(8), any purchase of material, supplies, and equipment
with a cost exceeding $15,000 requires formal, competitive bidding or the
use of a State contract or interlocal agreement.
Formal Bidding Process:
Task Action
1. Identify grants or federal
funds as applicable
Notify Accountant in Finance
2. Prepare bid documents Include:
• Invitation to bid
• Instructions and information for bidders
• Bid proposal template
• Bid bond template
• Bidder’s statement of qualifications template
• Sample contract
• Insurance requirements
Contact Legal Dept. to review prior to finalization
of bid package
3. Prepare product
specifications
Considerations: warranties, delivery, liquidated
damages
4. Advertise, publish, and
notify
Advertise in official newspaper
Publish bid on Builder’s Exchange
Email notification to recommended roster
participants (if any)
5. Addenda required? Department to write addenda, notify plan
holders, and post online
6. Schedule & conduct bid
opening
Department to schedule conference room and
open and read sealed bids
2020 Budget Section 5 - Page 65 of 106
12
7. Bid Award Determine the lowest, responsible, responsive
bidder
Prepare Council agenda materials if $30,000 or
more
Prepare purchase contract (or contact Legal
Department if needed)
Obtain vendor signature and forward to Legal
Assistant
Give Legal Assistant or Finance BARS code and
request purchase order/encumbrance.
Obtain W-9 for Accounts Payable
Do not notify non-selected bidders about award
until contract is fully signed
The City Manager has signing authority for purchases less than $30,000. All
purchases totaling $30,000 or more require City Council approval. Consider
the entire cost of the purchase for all years (for example, maintenance costs)
involved when determining the approval level. Contact the Finance or Legal
Department with questions on total contract value.
All purchases in this category require a W-9 from the vendor.
2.3 Food and Beverage Purchases
Generally, consuming food and beverages at public expense will be
discouraged. The consumption of nourishment is ordinarily regarded as
private and personal and not a public activity. (This includes light snacks.) In
the occasion where food and beverages are approved for purchase, in all
circumstances the department head and/or the City Manager must pre-
approve the purchase(s) and the department must have adopted budget
appropriations.
The following outlines circumstances when the City will provide for the
consumption of food and beverages:
1. Meal reimbursements while in travel status. Please refer to the City of
Port Townsend Personnel Policy Manual, Section 5.7 for meal per diem
policies.
2. Light refreshments and/or meals may be purchased by the City when:
2020 Budget Section 5 - Page 66 of 106
13
• Employees or officials attend a special meeting, training, or similar
circumstance where the purpose of the event is to discuss City
business, AND
• It provides benefit to the City, AND
• The refreshments are an integral (necessary) part of the meeting or
training session for the employee or official to receive the full
benefit of the meeting and/or training. (e.g., a working breakfast,
lunch, or dinner), AND
• The meeting or training session takes place away from the
employee or official’s regular workplace, AND
• Receipts for actual costs of the refreshments/meals are kept with
documentation of who was in attendance and the purpose of the
meeting or training session.
3. In emergency situations when a department head determines that
employees or intergovernmental employees performing critical City
functions must remain at their workplaces, providing
refreshments/meals will be allowed if the department head pre-
approves the purchase.
4. Meals and/or refreshments for employee, official, volunteer, wellness,
public, or occasional appreciation events when:
• The City Manager and/or department head has approved the
purchase(s) in advance and documentation of such is evident, AND
• Receipts for actual costs are kept with documentation of who was
in attendance and the purpose of the event, AND
• The meal/refreshment purchases for the event is approved through
budgeted appropriations.
Prohibited purchases of refreshments include the following circumstances
and will not be reimbursed by the City:
1. Meals and/or refreshments that were not pre-approved by the
department head and/or the City Manager.
2. Meals and/or refreshments that were not approved in budgeted
appropriations.
3. Purchase of alcoholic beverages.
Tips & FAQs
Q: My department is having a
regular staff meeting. I want to
treat my staff for a job well done.
Can I use City funds to purchase
pizza for my staff and serve it at
our regular meeting?
A: The quick answer is NO, if the
meeting is scheduled during
regular business hours at the
place of business. Although the
purpose of the meeting is to
discuss City business, providing
pizza is not an integral part of the
meeting.
Some exceptions may be made.
For example, if the Dept. Head
has budgeted staff recognition in
the annual budget and the
appropriations were approved by
City Council, then it would be
appropriate to buy pizza for staff.
As noted in the first paragraph of
Section 2.12, consuming food
and beverages at public expense
is discouraged.
2020 Budget Section 5 - Page 67 of 106
14
2.4 Piggybacking (State Contracts and Interlocal
Purchasing Agreements)
State Contract Piggybacking Process
The City has signed a master contract with the Washington State
Department of Enterprise Services (DES) to use the State’s contracts for
goods and services. When using a State contract, we are “piggybacking” off
their competitive process, eliminating the need to perform our own. The City
encourages the use of these contracts whenever possible.
Task Action
1. Review State contract
website for piggybacking
requirements
Contact Finance Department with
process questions
2. Contact vendor to verify
they will honor State
contract pricing
Obtain details regarding all aspects
of purchase, including invoicing,
availability, delivery, etc.
3. Contact Finance Dept. Finance or Legal Asst. will develop a
purchase order for the good/service
if contract value > $10,000 or
otherwise required by the vendor
3. Contact buyer to place
order
It is highly recommended
that all agreements to
use the State pricing are
documented in writing
Place order and process invoice for
payment.
Provide Finance Department with
BARS and State contract number for
purchase order
State contracts include standard terms and conditions. When piggybacking
off a State contract, all State contract terms and conditions apply. Contact
the Legal Department if any contract terms do not suit the City’s needs. Only
certain particulars can be changed, such as quantity and delivery terms.
Interlocal Purchasing Agreements
The process described above for State contracts can also be used to
purchase goods and services through other agencies’ contracts. However,
the following additional steps must be taken by City staff:
1. Read the other agency’s contract carefully to confirm that it allows
other agencies to use it.
2. Document that the purchase was made according to the other
agency’s bidding requirements and our bidding requirements.
Contact the Legal Department for assistance. This is best done by
Tips & FAQs
Q: How do I find what contracts
the State has available to use?
A: Visit the Department of
Enterprise Services’ website:
http://www.des.wa.gov/services
/ContractingPurchasing/CurrentC
ontracts/Pages/default.aspx
Tip
Some vehicles and heavy
equipment purchased through
the State require a State PO prior
to purchase.
Tip
State contracts typically have
good pricing. However, keep in
mind that they may not always
be the lowest cost option. These
contracts offer a good starting
point in the quote process.
Tip
Advertising:
Advertising requirements are
found in the following codes:
RCW 39.80.030 – Architectural
and Engineering Services
RCW 35.23.352(1) – Public Works
RCW 39.04.155(2)(a) – Public
Works Small Works Roster
2020 Budget Section 5 - Page 68 of 106
15
requesting and retaining copies of all bid documents from the other
agency.
3. Confirm that the City has a current interlocal purchasing agreement
with the agency before making the purchase.
4. If we do not have an agreement, contact the purchasing coordinator
at the other agency to request one. Contact the Legal Department
for assistance in processing the agreement.
Note: Be particularly careful about documentation when piggybacking off a
contract from an out-of-state agency or a different type of agency (for
example, a school district or port district). The authorization limits shown on
the matrix at the beginning of this manual apply to purchases through State
contracts and Interlocal Agreements.
2.5 Public Works
Bid Limit:
According to RCW 35.23.352, a second-class city, such as Port Townsend,
may construct a public work by contract or by day labor (City staff) without
calling for bids when the estimated cost of the work will not exceed $116,155
if more than one trade is involved or $75,500 if a single trade is involved.
When the cost of a public work exceeds these figures, the project should be
done by contract through formal sealed bidding, except that the City may
use the small works roster process for projects up to $350,000.
Determining the Cost of a Public Work:
The total construction cost of each project must be estimated in order to
correctly apply bid limit dollar amounts to determine if a public works project
must be competitively bid. This estimate may be prepared by an outside
third party; however, the final cost estimate must be validated by the City.
The total construction cost (estimated as if the project were to be bid) should
include materials, supplies, equipment, and labor for that project AND
applicable sales and use taxes. However, the value of volunteer labor,
donated materials, or donated equipment need not be included in the cost
estimate for a public works project, as these are not a cost to the City.
For projects completed by any means other than a contract or small works
roster process (for example, using City workers) having an estimated cost
exceeding $25,000, the City must publish a description of the project and its
estimated cost in the official newspaper at least fifteen days before
beginning work, as required by RCW 39.04.020.
Tips & FAQs
Q: What is a public work?
A: According to the American
Public Works Association, “public
work” is the combination of
physical assets, management
practices, policies and personnel
necessary for government to
provide and sustain structures
and services essential to the
welfare and acceptable quality of
life for its citizens. The projects
are financed and constructed by
and/or for the government.
Q: What is ordinary
maintenance?
A: According to WAC 296-127-
010(7)(b)(iii), ordinary
maintenance is defined as work
not performed by contract that is
performed on a regularly
scheduled basis (e.g., daily,
weekly, monthly, seasonally,
semiannually, but not less
frequently than once per year),
to service, check, or replace
items that are not broken; or
work not performed by contract
that is not regularly scheduled
but is required to maintain the
asset so that repair does not
become necessary.
Q: A contractor has requested a
deposit or advance before
starting work. Is this okay?
A: The City can only pay for work
that has been completed. We
cannot advance a contractor
funds to purchase materials for a
public works project.
2020 Budget Section 5 - Page 69 of 106
16
Bid Splitting:
RCW 35.23.352(1) prohibits the division of a project into units of work or
classes of work to avoid the restriction on work that may be performed by
day labor on a single project.
Small Works Roster:
When the estimated cost of a public works project is $350,000 or less, the
City may follow the small works roster process for construction of a public
work or improvement as an alternative to the general competitive bidding
requirements, in accordance with RCW 39.04.155. The City of Port
Townsend has contracted with the Municipal Research and Services Center
of Washington (MRSC) for use of its statewide electronic database for small
public works contractors, vendors, and consultants.
Publication:
At least once a year, on behalf of the City, MRSC publishes notice in local
newspapers of the existence of the rosters and solicits the names of
contractors for the rosters. Responsible contractors can be added to the
appropriate MRSC roster(s) at any time that they submit a written request
and necessary records. The City may require contracts to be signed when
project awards are made using a small works roster.
2.6 Limited Small Works Process (Public Works Projects
under $50,000)
If a public work, construction, alteration, repair, or improvement project is
estimated to cost less than fifty thousand dollars ($50,000), the City may
use the limited public works process instead of formal, competitive bidding,
as provided in RCW 39.04.155(3).
Process:
1. Develop a scope of work describing the nature of the work to be
performed and materials and equipment to be furnished. Detailed plans
and specifications need not be included in the invitation.
2. Solicit at least three contractors on the MRSC Small Works Roster for the
applicable category or categories. Requests for estimates should include
the date, time, and location to return the estimate. Notify contractors
that:
a. they must pay prevailing wage;
b. the City must equitably distribute opportunities among
contractors in the geographic area;
c. the City will require a performance bond and a payment bond,
each for the total cost of the project; and
Tips & FAQs
Q: The contractor I’m hiring
doesn’t want to use our contract
form. Is this okay?
A: You can forward a contractor-
provided contract to the Legal
Department for review; however,
we prefer to use City forms
whenever possible. In some
cases, such as formally bid
projects, we must use the
contract form provided to bidders
with the solicitation.
Developing Scope of Work:
Things to consider when
developing your scope:
• Hold the contractor
accountable.
• Be precise. Avoid ambiguity.
• Use the active voice (i.e., “The
Contractor will or shall”).
• Due dates & deliverables.
Other considerations when
developing the contract:
• Term of contract or period of
performance.
• Compensation and payment.
• Payment terms.
Duration of Contracts:
Every City contract should state
the start and end dates. End
dates for some public works
contracts will be based off the
Notice to Proceed date.
2020 Budget Section 5 - Page 70 of 106
17
d. the City will hold 5% retainage until releases are received from
the State (RCW 60.28.011), unless waived by staff member with
contract signing authority.
Note: The City staff member with contract signing authority
may waive the bond and retainage requirements; however,
contractors must be notified about this waiver in the request for
estimates and/or advertisement for the project.
Note: If payment and performance bonds are required, the
contractor may choose to have 10% retainage held instead of
obtaining bonds.
3. Determine the lowest responsive, responsible bid.
4. Send the Legal Assistant copies of all estimates or a list of all contractors
contacted and their bid amounts. (We are required by law to maintain a
list of contractors contacted under the limited public works process.)
5. The Legal Assistant will make sure the contractor meets all bidder criteria
and will draft a contract.
6. If project total is over staff signing authority, contact the City Clerk to
schedule contract approval on an upcoming City Council agenda.
7. After Council approval, send the draft contract to the contractor along
with a request for items identified by the Legal Assistant (for example,
W-9 and proof of insurance).
Note: All projects require a W-9 from the contractor.
Alternative to Process:
Local governments may waive retainage but must assume liability of
contractors for non-payment. The local government has the right of
recovery from the contractor.
2.7 Small Works Roster Process (Public Works Projects
$350,000 or less)
If a work, construction, alteration, repair, or improvement project is
estimated to cost $350,000 or less, the small public works process may be
used instead of formal, competitive bidding, as allowed by RCW
39.04.155(1).
Process:
1. Develop a scope of work describing the nature of the work to be
performed and materials and equipment to be furnished. Detailed plans
need not be included be included in the invitation.
Tips & FAQs
Equitable Distribution:
“Equitably distribute” means that
the City may not favor certain
contractors on the roster over
other contractors on the roster
who perform similar services.
Projects $250,000-$350,000:
If the estimated cost of the work
is $250,000 to $350,000, the City
may choose to solicit estimates
from less than all appropriate
contractors on the roster but
must notify the remaining
contractors on the roster that
estimates on the work are being
sought. The City can choose to do
this by:
Publishing notice in a legal
newspaper in the general
circulation in the area where the
work is to be done
Mailing a notice to these
contractors; or
Sending a notice to these
contractors by email.
Access to the Small Works
Roster is available:
http://www.mrscrosters.org/
2020 Budget Section 5 - Page 71 of 106
18
Note: For projects totaling $250,000-$350,000, all contractors in the
applicable category must be notified that the project is being bid, even if
they are not invited to bid.
2. Contact at least five contractors on the MRSC Small Works Roster for
the applicable category or categories. Requests for estimates should
include the date, time, and location to return the estimate. Notify
contractors that:
a. they must pay prevailing wage;
b. the City will require a payment bond and a performance bond,
each for the total cost of the project; and
c. the City will hold 5% retainage until releases are received from
the State (RCW 60.28.011).
Note: The City staff member with contract signing authority
may waive retainage requirements; however, contractors must be
notified about this waiver in the request for estimates and/or
advertisement for the project.
Note: For projects totaling $150,000 or less, the contractor
may choose to have 10% retainage held instead of obtaining bonds.
Note: The city will retain the right of recovery from the
contractor if retainage is waived.
3. Determine the lowest responsive, responsible bid.
4. Send the Legal Assistant or Engineering staff (for capital projects) the
estimate for the lowest bid and expected project dates. (The City’s
“Small Works less than $350,000 Documentation Form” may be used.)
5. The Legal Assistant or Engineering staff will make sure that the
contractor meets all bidder criteria and will draft a contract.
6. Contact the City Clerk to schedule the contract approval for an upcoming
City Council meeting.
7. Draft agenda bill and resolution, if applicable, and send to City Attorney
for review.
8. After Council approval, send the draft contract to the contractor along
with a request for items identified by the Legal Assistant or Engineering
staff, such as proof of insurance and a W-9.
2.8 Formal, Competitive Bid Process (Required for Public
Works Projects over $350,000)
Formal, competitive bidding must be used for all public works projects over
$350,000; however, it may also be used for any projects below this
threshold. Competitive bidding is designed to prevent favoritism in
awarding public work contracts and to enable local governments to obtain
Tips & FAQs
Deadlines for estimates:
The statutory requirement of 13
days’ advertising for a public
works project in a formal bid
process does not apply to small
works roster or limited public
works process; advertising is not
required. However, depending
on the complexity of the project,
it is suggested that at least 7 to
14 days be allowed for
contractors to submit a proposal,
so they have adequate time to
research the specifications
Contractor requirements for
formal bidding at time bid is
submitted:
• Bids must be sealed when
submitted to City
• Bids should be labeled on the
envelope with the bidder’s
name and project identification
• Bid must include a 5% deposit
in the form of a cashier’s check,
postal money order, or surety
bond
• Include all applicable taxes in
bid amount
• Complete and sign bid proposal
• Meet all responsible bidder
criteria in RCW 39.04.350
• Meet all supplemental bidder
criteria, if any
• If project is $1 million or more,
provide a list of all
subcontractors for HVAC,
plumbing, and electrical work
within one hour of bid opening
(RCW 39.30.060)
2020 Budget Section 5 - Page 72 of 106
19
the best work or supplies at the most reasonable prices. It is also designed
to provide a fair forum for bidders and to protect the public interest.
Bidding process:
1. Coordinate with Accountant in Finance if using grant or federal
funds.
2. Draft or work with consultant to draft bid package and send to City
Attorney for review.
3. Draft a notice to bid, stating the nature of the work.
4. Notify bidders that bids must be sealed, and a 5% bid deposit is
required, in the form of a cashier’s check, postal money order, or
surety bond.
5. Have the notice to bid published in the City’s official newspaper
(currently The Leader) at least 13 days prior to the date bids are
due. Staff may choose to publish notice in additional newspapers,
such as the Daily Journal of Commerce.
6. Post the bid on Builder’s Exchange.
7. City Administration receives and date and time stamps sealed bids.
8. Hold a public bid opening after the bid deadline closes.
9. Identify the lowest responsive, responsible bidder.
Note: If the contract is not awarded to the lowest bidder, a full and
complete statement of the reasons for selecting another bidder
must be prepared, approved by the City Manager, and retained in
the file. See RCW 35.23.352(2) or Section 2.15.
10. Notify the City Clerk to add approval of the project contract to an
upcoming City Council agenda.
11. Draft an agenda bill and resolution, if applicable. Ask the City
Attorney to review.
12. Following Council approval, ask the Engineering Dept. (capital
projects) or Legal Assistant (other projects) to draft a contract.
13. Send draft contract to contractor with request for additional items
identified by Engineering staff or the Legal Assistant.
14. After the contract has been fully signed, send a copy to the
contractor and return all bid bonds, except for the one submitted
by the successful bidder.
2.9 Equipment Purchases Including Installation
RCW 35.23.352(1) prohibits the division of a public works project into units
of work or classes of work to avoid the restriction on work that may be
performed by day labor on a single project.
Occasionally projects include the direct purchase of equipment separate
from the installation. For example, the City purchases equipment for
Tips & FAQs
Contractor requirements after
selection as lowest bidder:
• Pay prevailing wage
• Obtain performance bond on
City-issued form for 100%
contract price
• Obtain payment bond on City-
issued form for 100% contract
price
• Provide proof of insurance and
endorsement naming City as
additional insured
• Have an Intent to Pay
Prevailing Wage approved by
L&I before the City will make
any payments
• Have an Affidavit of Wages
Paid approved by L&I before
the City will make final
payment.
• Pay all applicable taxes
• Provide all required
information on the project to
the Department of Labor &
Industries, Employment
Security Department, and
Department of Revenue.
Tip
If a project uses federal highway
funding, check the grant
agreement carefully for all
requirements. These projects
require that the notice to bid be
published at least 21 days before
the bid deadline.
Tip
If federal funds are involved, all
bid specifications and contracts
shall include the Davis-Bacon Act.
2020 Budget Section 5 - Page 73 of 106
20
$50,000 off a State contract, and the installation is estimated to cost
$25,000.
How do we bid this project?
Because we cannot split public works into units to avoid the bidding process,
we must combine the cost of the two purchases and treat them as one to
establish the “project cost.” In this example, the cost of the entire project is
$75,000 (equipment @ $50,000 + installation @ $25,000), which exceeds
the City’s limited public works bid threshold of $50,000. Therefore, the
public work installation must be awarded using the small works process or
formally bid (see Sections 2.7 and 2.8 above). The purchase of the
equipment can be made using the State contract (see Section 2.4 above).
What kind of contract do we use?
For this project, because the public works installation is under $350,000, we
would use a small public works contract. Usual contract requirements that
apply to small public works projects apply to this project. Because the total
project cost is $75,000, this contract would have to go to City Council for
approval.
There are so many variables to this type of purchase that it would be difficult
to highlight every possible scenario. Please contact the Finance Department
or Legal Department for assistance.
Approval Process:
Refer to the Public Works section of the matrix at the beginning of this manual.
2.10 Unit Priced Contracts
RCW 35.23.352 allows the City to use unit priced (or on-call) contracting for
public work projects that are expected to happen on a recurring basis, such as
tree trimming, road resurfacing, or public facility maintenance. Unit priced
contracts means a competitively bid contract in which public works are
anticipated on a recurring basis to meet the business or operational needs of the
city or town, under which the contractor agrees to a fixed period indefinite
quantity delivery of work, at a defined unit price for each category of work.
Whenever possible, the city must invite at least one proposal from a certified
minority or women contractor who otherwise qualifies.
Unit priced contracts must be executed for an initial contract term not to exceed
three years, with the city or town having the option of extending or renewing the
unit priced contract for one additional year.
Invitations to bid for these contracts shall include, for purposes of the bid
evaluation, estimated quantities for the anticipated types of work and specify how
Tips & FAQs
Determining the total cost for
an equipment purchases
with installation:
Equipment & materials cost
+ Cost of installation =
Total project cost
Tip
All public works, including
maintenance, when performed
by contract, shall comply with
RCW 39.12.020 as it pertains to
prevailing wage requirements.
According to RCW 39.04.010 (4),
there are clearly two categories
of work that must comply with
prevailing wage requirements:
(1) public works and (2)
maintenance when performed by
contract.
Tip
When the City executes any
public work by any means other
than by contract or small works
roster, it must keep a full, true,
and accurate account and record
of the costs of executing such
work as prescribed in RCW
39.04.070.
Prior to commencement of the
public work project, the Legal
Assistant, upon request, will
create an encumbrance number
(purchase order number) for use
in coding all costs associated with
the project.
2020 Budget Section 5 - Page 74 of 106
21
the City will issue or release work assignments, work orders, or task
authorizations based on the hourly rates or unit prices bid by the contractor.
Contracts must be awarded to the lowest responsive, responsible bidder.
Unit priced contractors shall pay prevailing wages and update rates annually.
Intents and affidavits for prevailing wages paid must be submitted annually for
all work completed within the previous twelve-month period of the unit-based
contract.
Note: The City is also allowed (by RCW 39.10.420) to obtain public works services by job
order contracts; however, these contracts are for a broader scope than unit priced contracting and
require that 90% of the work be performed by subcontractors. Please consult with the City
Attorney for more information.
2.11 Services
There are three types of services that the City may need to obtain:
1. Professional services (also called personal services) are provided by
independent contractors with specialized knowledge, advanced
education, professional licensing, or certifications; the primary service
provided is mental or intellectual, involving the consistent exercise of
judgment and discretion.
2. General services (also known as purchased services) include all service-
related work not considered a public work or professional service. Most
often these are routine in nature (i.e. yearly, monthly, weekly, etc.).
Examples include courier services, weeding, and vehicle inspection
services. State law does not require a competitive process for the
selection of general services, with the exception of the City newspaper.
3. Architectural, engineering, land surveying, and landscape architecture
services (A&E) are addressed in Section 2.12 below. Section 2.11 does
not apply to A&E services.
The City uses MRSC’s Consultant Roster, which distinguishes architectural
and engineering services as defined in RCW 39.80.020 from other consulting
services. Consultants can be added to the appropriate roster when they
submit a written request and necessary records to MRSC. The City reserves
the right to publish an announcement on each occasion when professional
or other services are required.
To ensure a more competitive process, the City has adopted tighter
standards for selection of service providers than required by State law.
Unless the City Manager approves in writing an exemption based on the best
interests of the City, staff shall follow these guidelines for selection of
professional or general services:
Tips & FAQs
Examples of general services:
• Customized accounting
software and ongoing support
• Landscaping, building, and
grounds maintenance
• Snow and ice removal
• Garbage collection and
disposal (Solid waste
collection and disposal
contracts do not have to be
bid. An RFQ/RFP process as
noted in RCW 35.21.156 can
be used.)
• Office equipment
maintenance
• Official newspaper
Formal competitive bidding for
general services:
1. Prepare a formal solicitation
document, including
description of project
requirements and proposal
evaluation criteria.
2. Publish legal notice in
newspaper.
3. Develop bidder’s list of firms
responding to solicitation.
4. Develop score sheets to be
used by evaluators (if
applicable).
5. Send the solicitation to at
least five firms or individuals.
6. Provide answers to bidder’s
questions via addenda.
7. Require sealed bids and a
public bid opening. Date and
time stamp all bids received.
8. Evaluate proposals according
to score sheet.
9. Negotiate contract with
lowest responsive,
responsible bidder.
2020 Budget Section 5 - Page 75 of 106
22
• Under $5,000 – No competitive process required. It is still incumbent on
the department to ensure that the price is reasonable, and the provider
is qualified. It is recommended to request prices, schedules, and
qualifications from three consultants on the MRSC Consultant Roster.
• $5,000 to $9,999 – It is highly recommended to request prices,
schedules, and qualifications from at least three consultants on the
MRSC Consultant Roster.
• $10,000 to $19,999 – Request proposals from at least three consultants
on the MRSC Consultant Roster (with one having a MWDBE classification
when possible) or use an RFP/RFQ process.
• $20,000 or more – Formal advertised RFP or RFQ process
recommended.
Note: Some general services, such as landscaping work, require payment
of prevailing wages. Contact the Legal Department with questions.
Contract Award Process:
1. Develop scope of work.
2. Determine budget amount for work.
3. If grant funds are involved, check the grant agreement requirements.
4. Obtain proposals or conduct formal bidding as required above.
5. Evaluate the proposals and negotiate a contract with the lowest
qualified, responsible bidder.
6. If Council approval is required, contact City Clerk for meeting date. Draft
agenda bill and resolution, if applicable, and send to City Attorney for
review.
7. After Council approval (if required), contact the Legal Assistant with a
copy of the estimate and other relevant information, such as project
start and end dates.
8. Legal Assistant will prepare a draft Professional Services Agreement.
9. Send contract to service provider for review and signature, along with
request for documents identified by Legal Assistant, such as W-9.
10. Forward signed contract and additional documents to Legal Assistant for
processing.
11. Forward fully signed contract to contractor and arrange for project
start.
Approval Limits:
For the approval limits, refer to the Services section of the Purchasing Matrix
at the beginning of this manual.
Tips & FAQs
Examples of Professional
Services:
Programmers, accountants,
attorneys, physicians,
consultants, graphic artists
Examples of A&E Services:
Engineers, land surveyors,
architects & landscape architects
A&E Requests for Proposals
(RFPs) must, at a minimum,
include:
1. Statement of need (scope)
2. Estimated schedule
3. Evaluation criteria
4. Proposal elements
5. Submittal deadline
6. Standard terms & conditions
Advertising:
Advertising requirements are
found in the following codes:
RCW 39.80.030 – Architectural
and Engineering Services
RCW 35.23.352(1) – Public Works
RCW 39.04.155(2)(a) – Public
Works Small Works Roster
2020 Budget Section 5 - Page 76 of 106
23
2.12 Purchases of Architectural & Engineering Services
Architectural, engineering, land surveying, and landscape architecture
services (frequently referred to as “A&E”) are to be acquired under the
authority and procedures outlined in chapter RCW 39.80.
RCW 39.80.030 requires that the City publish advance notice of its need for
A&E services. The City may comply with this section by (1) publishing an
announcement on each occasion when professional consultant services are
required or (2) announcing generally to the public its projected requirements
for any category or type of professional service.
A&E consultants are initially selected based upon their qualifications, rather
than price (see RCW 39.80.050). The City will negotiate a contract with the
most qualified firm at a price that the City determines is fair and reasonable.
In making its determination, the City shall consider the estimated value of
the services to be rendered, as well as the scope, complexity, and
professional nature of the project. If the City is unable to negotiate a
satisfactory contract with the selected firm for a price the City determines to
be fair and reasonable, negotiations shall be terminated, and the City shall
begin negotiations with the next highest qualified firm. There are two ways
to select an A&E firm based upon their qualifications:
1. Roster statement of qualifications (SOQ) review – Select three or
more consultants from the MRSC Consultant Roster in the relevant
service category and evaluate their qualifications. Documentation of
the three reviews is required. Minority-owned, women-owned, and
veteran-owned firms must be given the maximum practicable
opportunity to compete for these contracts.
2. Project-specific request for proposals (RFP) – Use the MRSC
Consultant Roster to send out an RFP and request for qualifications
(RFQ) to consultants in the relevant service category. Minority-
owned, women-owned, and veteran-owned firms must be given the
maximum practicable opportunity to compete for these contracts.
Contract Award Process:
1. Develop scope of work
2. Determine budget amount for work
3. If grant funds are involved, check the grant agreement requirements
4. Public advance notice of need for services, if not already done
5. Obtain proposals or conduct formal solicitation, as described above
6. Evaluate proposals and/or statements of qualifications and select the
most highly qualified firm
7. Negotiate final project scope and fees with selected firm
Tips & FAQs
Q: What is the difference
between an RFP and an RFQ?
A: An RFP will typically focus on a
specific project and includes price
as one of the submittal
requirements and evaluation
factors.
An RFQ does not have price/cost
considerations and is dependent
on qualifications only. An RFQ is
commonly issued for architects
and engineers per RCW 39.80. An
RFQ can be used for specific
projects when hiring an A&E firm
but will not include price/cost as
one of the evaluation factors.
Sample evaluation criteria for
RFPs:
1. Experience with project type
2. Quality of previous
performance
3. Ability to meet contract
deadlines
4. Responsiveness to solicitation
requirements
5. Compliance with laws relating
to contracts or services
6. References
7. Availability for the project
8. Financial capacity
9. Licensing and certification
10. History of errors and
omissions
11. Construction change order
history
2020 Budget Section 5 - Page 77 of 106
24
8. If project total is over City Manager signing authority, contact City Clerk
to add contract approval to upcoming City Council agenda
9. After Council approval (if applicable), request that Legal Assistant draft
professional services agreement
10. Obtain consultant’s signature on agreement, along with proof of
insurance, professional certification (if applicable), and W-9
11. Send documents to Legal Assistant for City signatures and processing
Approval Limits:
Refer to the matrix at the beginning of this manual.
2.13 RFPs and RFQs
Request for Proposals:
A Request for Proposals (RFP) is a method of soliciting competitive proposals
for a defined scope of work. The proposals would normally include factors
to measure qualifications, delivery, and service reputation, as well as price.
An RFP is a formal invitation from the City to a company to submit an offer
to provide a solution (or proposal) to a problem or need that the City has
identified. The supplier’s experience, qualifications, and solution may take
precedence over the cost proposal to the City.
Elements of an RFP:
1. Purpose of RFP (brief description of project)
2. Project background
3. Scope of work or statement of need
4. Goals and objectives
5. Minimum qualifications
6. Technical requirements (if any)
7. Schedule
8. Estimated project budget & request for cost proposal
9. Submittal requirements, including deadline
10. Evaluation process and criteria
11. Insurance requirements
12. Funding sources (if applicable)
Evaluation criteria for the submitted proposals should relate to the project’s
scope of work and stated objectives and should be clearly communicated
with the proposers.
Request for Qualifications:
A Request for Qualifications (RFQ) is a method of soliciting competitive
proposals that considers and evaluates companies on the basis of
demonstrated competency and qualification rather than price. This process
Tips & FAQs
Q: State law does not require any
formal competition for services.
Why do I have to do an RFP/RFQ?
A: Its true, State law does not
require competition for services.
However, City policy is more
restrictive than that of the State.
2020 Budget Section 5 - Page 78 of 106
25
is typically used for architectural and engineering services where price is not
a consideration. An RFQ will generally result in negotiations.
Elements of an RFQ:
1. Project background and scope of services
2. Project budget and source of funding
3. Schedule
4. Minimum qualifications
5. Submittal requirements, including deadline
6. Selection process/evaluation criteria.
Information request of the respondents may include list of principals,
previous projects, number of employees, and licenses or certifications.
Depending upon the complexity of the project, a typical RFP or RFQ takes
around 6-8 weeks to complete.
Process for RFPs or RFQs:
Task Action
1. Identify need Develop scope of services
2. Determine the estimated cost Confirm sufficient budget exists and
identify funding source(s)
3. Identify grants or federal funds Notify Finance Dept. (Accountant)
4. Develop draft RFP/RFQ Considerations:
• Schedule
• Scope of services
• Qualifications
• Selection process & evaluation criteria
• Submittal requirements & deadline
• Proposal validity period
• Term of contract
5. Finalize RFP/RFQ Contact City Attorney for review, then
finalize RFP/RFQ
6. Identify appropriate roster
category
Identify roster category and companies
7. Advertise, publish, and notify • Advertise
• Publish RFP on City's website
• Email notification to recommended
roster participants
8. Evaluate proposals Department to identify selection
committee
9. Conduct interviews Department to schedule
10. Identify "apparently successful
proposer"
Seek management approval to negotiate
with "apparently successful proposer"
2020 Budget Section 5 - Page 79 of 106
26
11. Negotiate contract Goal: reach a mutually advantageous
position on issues of concern while
fulfilling requirements of contract
12. Award contract Prepare council agenda materials, if
applicable, and contact Engineering or
Legal Assistant for draft contract when
approved
2.14 Bid Opening Process
Bid Due Dates
Time is of the essence. It is important to make the bid submittal deadline
clear in the bid documents. For example: “The bid form will be received up
to 3:00 p.m. on April 27, 2020. Bids received after that date and hour, based
on the time on our atomic clock, will not receive consideration.” For
example, if a bid is due at 2:00 P.M., a bid received at:
• 1:59 p.m. is on time
• 2:00 p.m. is on time
• 2:00:01 p.m. is late
If a bidder insists on submitting a bid after the deadline and leaves it, do not
open it. Make a photocopy of the bid envelope with the time stamp and
immediately return the bid by certified mail, return receipt requested.
Equal Treatment of Bidders
Avoid giving bidders an advantage to include: permitting bidders use of
private offices and conference space for finalizing bid prices, providing
envelopes for bidders to use in sealing the bid, or permitting bidders to use
the agency’s telephone, computer, fax, or photocopier. Avoid disclosing the
names of bidders or the total number of bidders until the bid opening.
Receiving Bids Checklist
• Is the bid in writing? Do not accept bids by fax, email, telephone or
orally unless the bid solicitation allows for it (generally not allowed
for formal, competitive bidding).
• Did the bidder attend the mandatory pre-bid meeting, if applicable?
• Is the bid envelope sealed? Offer tape if not sealed.
• Is the correct information on the envelope?
• Is the time stamp clear?
• Is the time stamp prior to deadline?
• All received bids should be kept in a secure and centralized location
not accessible to other bidders.
2020 Budget Section 5 - Page 80 of 106
27
Withdrawal & Modification of Bids
• A request to withdraw or modify the bid in advance of the deadline
may be received verbally or in writing. If unfamiliar with the bidder,
ask for identification.
• Make a photocopy of the face of the bid envelope, ensuring the bid
receipt time shows up on the copy.
• Have the bidder sign the photocopy with the following “Received by
(signature, printed name, date, time).”
• Keep the original signed photocopy.
• Remove the bid receipt stamp or cross it out on the face of the bid
envelope.
• Return the bid to the bidder, notifying the bidder that if they choose
to resubmit the bid, it must be received prior to the bid submittal
deadline and stamped in again with a new time and date stamp prior
to the deadline.
Modifying Bids from a Distance
The bidder may submit additional information modifying a previously
submitted bid if the modification is:
• Received in writing.
• Signed by an authorized representative of the bidder.
• Received prior to the bid receipt deadline.
• In a sealed envelope.
• Clear in stating what prices are being changed.
Subcontractor’s List
Due either with the bid or within one hour of the bid submittal deadline
(RCW 39.30.060).
Opening the Bids
Bids should be opened in a public meeting. Read each bid before opening
the next one. Consider using one person to open the bids and a second
person to read. The project manager staff should record the prices on a bid
tabulation form. The bid reader should state publicly all the information
noted in looking at the bid, without passing judgment whether it is
responsive or non-responsive, to include:
• Name of bidder
• Is bid form signed?
• Bid amount
• Is bid guaranty included?
• Are addenda acknowledged?
• Is subcontractor’s list included?
2020 Budget Section 5 - Page 81 of 106
28
The bids will be evaluated for responsiveness after the bid opening. If a
contractor wishes to review the bids after the bid opening, allow only one
contractor at a time to review the bids in a monitored environment.
2.15 No Bids or Non-Responsive/Responsible Bids or
Submittals
No Bids or Submittals Received:
As provided in RCW 35.23.352(1), in the event the City does not receive any
bids or submittals on the first call, the City has three options: (1) re-advertise
and make a second call, (2) enter into a contract with any qualified
contractor, or (3) purchase the supplies, materials, or equipment and
perform such work and improvement by day labor (City staff).
Before determining which option would best fit, the department should
conduct a survey of the registered bidders or proposers or any other known
interested parties to determine: 1) why they didn’t they submit, 2) whether
the City’s document too restrictive or too complex, 3) if there ample time to
submit, and 4) if there too many open questions before the due date. The
City Attorney may be consulted for additional assistance in determining the
best option.
Determining Lowest Responsible Bidder:
The City should award the contract for a public works project to the lowest
responsible bidder, unless the lowest bid is above the budget for the project.
In that case, all bids may be rejected, and the City may call for new bids.
A responsible bidder shall be a registered and/or licensed contractor who
meets the mandatory bidder responsibility criteria established by RCW
39.04.350 and who meets any supplementary criteria established by the
City.
According to RCW 35.23.352(2), the City may award a contract to the second
lowest bidder if: (1) the bid is within five percent of the lowest bid, (2) the
second lowest bidder meets the same criteria as the lowest bidder, AND (3)
the City has issued a written finding to the lowest bidder within the last three
years that the lowest bidder was late, over budget, or did not meet
specifications, and the City has not found in writing that the lowest bidder
has shown how they would improve performance.
Non-Responsive and/or Not-Responsible:
The City shall draft bidder responsibility criteria that are based upon clear
business reasons, and the criteria must not be overly restrictive of the
bidding pool. Note that in Washington State, a bidder who objects to the
2020 Budget Section 5 - Page 82 of 106
29
supplemental bidder responsibility criteria may request that the City modify
the criteria before the bid submittal deadline.
Bids may be rejected as non-responsive for a multiple of material factors,
including lack of subcontractor’s list when required (for contracts in excess
of $1M or contracts of three or more trades), insufficient bid guarantees,
bids submitted after the deadline, qualified bids, and/or lack of
acknowledgement of addenda. In general, a material irregularity is required
before the bid may be deemed non-responsive (defined as any variance
which provides “a bidder substantial advantage or benefit not enjoyed by
others”). In the event the City receives a bid or submittal on the first call
that is deemed non-responsive or non-responsible, the department shall
consult with the City Attorney to determine whether it is a material or
immaterial irregularity. Each project will be evaluated on a case-by-case
basis.
Bid Protest:
The City follows the bid protest guidelines established in RCW 39.04.105.
2.16 Contracting 101
A contract is a written agreement between two or more people or entities
to accomplish a specific outcome. In a public purchasing context, a contract
is an agreement by a vendor or contractor to provide goods or services to
the City in return for receiving payment from the City. The following is an
overview of the contract process:
Invitation:
• A solicitation (ITB, ITQ, or RFP) is an invitation to a contractor to make
an offer.
• These are most often directed at multiple parties and outline the
needs of the City.
Offer:
• The contractor’s returned quote/bid/proposal is their offer to the
City to perform the work, outlining what and how much.
• The offer shows that the contractor is willing to agree to specific
terms.
• The offer is given to a particular party.
• The contractor has made an offer to do what the City requested for
a specific price.
Acceptance:
• The City must now accept one of the offers.
2020 Budget Section 5 - Page 83 of 106
30
• The acceptance is a communication showing agreement to the exact
terms of the offer or a contract.
• Contracts must show that the offer made by the contractor has been
accepted, usually by attaching the contractor’s estimate or scope of
work and fee schedule.
2020 Budget Section 5 - Page 84 of 106
31
3.1 Rule 171 – Sales Tax Exemptions
Normally sales tax applies to every sale of tangible personal property (and
some services) to all persons, including cities. Thus, for bid limit purposes,
the tax must be included when determining the cost of a public work or
when calculating the cost of materials, supplies, and equipment purchases
separately from a public work.
However, there are some sales and use tax exemptions for certain public
work projects. The exemptions include:
1. Labor and services rendered for the building, repairing, or improving
of any street, place, road, highway, easement, right-of-way, mass
public transportation terminal or parking facility, bridge, tunnel, or
trestle owned by a city or town which is used primarily for pedestrian
or vehicle traffic ( RCW 82.04.050(10). See also WAC 458-20-171,
nicknamed “Rule 171.”) Materials used in constructing these
projects are not exempt from the sales and use tax.
2. Labor and services for the processing and handling of sand, gravel,
and rock taken from City pits and quarries when the material is for
publicly-owned road projects ( RCW 82.08.0275 and WAC 458-20-
171 ).
3.2 Prevailing Wages
What are prevailing wages? The Department of Labor and Industries (L&I)
requires that workers be paid prevailing wages when employed on all public
works, public building service maintenance, and contracted maintenance,
based upon the classification of labor performed.
Prevailing wages are defined as the hourly wage, usual benefits, and
overtime paid in the largest city in each county, to the majority of workers,
laborers, and mechanics. Prevailing wages are established by the
Department of Labor and Industries for each trade and occupation
3.0 Other Considerations
Tips & FAQs
Q: Does the exemption from the
sales and use tax for labor and
services on a City street project
apply if a private contractor does
the work?
A: Yes. It makes no difference, for
the purposes of the exemption,
whether the City does the work,
or has it done by someone else.
2020 Budget Section 5 - Page 85 of 106
32
employed in the performance of public work. They are established
separately for each county and are reflective of local wage conditions.
What are the responsibilities of the City when contracting for public works?
The City, in awarding a contract, must make the determination of whether
that contract involves “public work” and communicate it to contractors in
the bid specifications and contracts.
What provisions must be made for prevailing wage? Awarding agencies
must stipulate in bid specifications and contracts for public work that
workers shall receive the prevailing rate of wage. Those documents must
either contain a list of the applicable prevailing wage rates or a link to the
rates on L&I’s website. If including a link, print the current rates and keep
with the project file.
What are the public building service maintenance contract requirements?
Public building service maintenance (janitorial) contracts of more than one-
year duration must include wage language recognizing the potential for
future variance in applicable prevailing wages each year after the first year
of the contract.
What are awarding agency requirements when disbursing public funds?
Agencies may not make any payments where contractors have not
submitted an Intent to Pay Prevailing Wage form that has been approved by
L&I. Agencies may not release final payment until all contractors have
submitted an Affidavit of Wages Paid form that has been certified by L&I.
The requirement to submit these forms should also be stated in the contract.
What are the contractor’s filing requirements? Public work contracts
require that each and every contractor and subcontractor on the project file
the “Statement of Intent to Pay Prevailing Wages” and “Affidavit of Wage
Paid” forms.
Is there a minimum contract amount for a contractor to file? There is no
minimum dollar contract amount. Intent and Affidavit forms are required
for every public works contract regardless of the size of the contract.
When does the contractor file an Intent? The Intent form is filed
immediately after the contract is awarded and before work begins, if that is
possible.
When does the contractor file an Affidavit? The Affidavit form is not filed
until after all the work is complete.
Tips & FAQs
Q: Do I have to include prevailing
wage rates in the contract
specifications as an attachment
or can I just put in a link to the
L&I website?
A: Per RCW 39.12.030 all bid
specifications and contracts shall
include a list of the applicable
wage rates.
2020 Budget Section 5 - Page 86 of 106
33
3.3 Retainage
What is the purpose of retainage? The City retains a portion of the contract
amount for public works contracts as a trust fund to pay any claims
associated with the contract and/or for payment of amounts due by the
contractor to the Department of Labor and Industries, the Employment
Security Department, and the Department of Revenue (RCW 60.28.011).
What level of retainage is required? The City generally retains 5% of the
contract amount. However, for contracts awarded by the small works roster
process and totaling less than $150,000, contractors may opt to have 10%
retained in lieu of a obtaining a performance bond. The City may
alternatively choose to waive retainage requirements for any small works
roster contracts. Retainage is not held for projects funded by federal
transportation funds.
What are the retainage options? The City retains the funds in a City fund,
unless otherwise requested by the contractor. A contractor may choose to
have the funds deposited by the City into an interest-bearing account or
placed by the City in escrow with a bank or trust company. If the escrow
option is selected, contact the City Attorney for an escrow agreement.
When can retainage be released? Retained funds will be released after final
acceptance of the project and after the City has received all releases from
the Department of Revenue, the Department of Labor and Industries, and
the Employment Security Department. Upon receipt of all releases, the
project manager should notify the Legal Assistant to release the funds. For
projects under $35,000, the retained funds will be released when the
Department of Labor and Industries has approved the contractor’s Affidavit
of Wages Paid.
Is the City liable for payment of project costs to subcontractors if waiving
retainage? Local governments may waive retainage but must assume
liability of the contractor’s non-payment. The Local government does retain
the right to recovery from the contractor.
2020 Budget Section 5 - Page 87 of 106
34
4.1 Risk Management Considerations
The City enters into numerous contracts throughout the year. These
contracts involve risk. City property can be damaged. Employees of the City,
contractors, subcontractors, and suppliers can be injured. Members of the
public can be harmed. These and other accidental losses can arise during
and as a result of the activities during the contract fulfillment process. The
City seeks to transfer responsibility to such events to those with whom it
contracts.
The City’s approach to contracting is designed and managed to avoid undue
exposure to risk with exceptions where it makes good business sense.
Certificates of insurance and endorsements naming the City as an additional
insured are required from all contractors and consultants who contract with
the City. Verification of appropriate insurance requirements shall be
completed prior to signing of the contract by the City. Any waiver of
insurance requirements requires the approval of the person with signing
authority for the contract (generally the City Manager). Contact the City
Attorney with questions about insurance requirements or for advice on the
risk of a requested waiver.
4.2 Payment Options
Prior to contract award, payment terms should be identified to determine
the most effective compensation method. The most common include:
Hourly/Time and Materials:
The City pays a fixed hourly rate and pays for the cost of certain specific
services and/or materials. For certain professions, such as consultants, this
is the standard option. Time and materials contracts should have a ceiling
amount or a not to exceed amount included. This type of payment term may
be used if the City is unable to clearly define the level of effort required to
accomplish the objectives. A time and materials contract places most of the
risk on the City and little on the contractor and provides no positive profit
incentive to the contractor for cost control or labor efficiency. Frequent
contract monitoring is required to ensure that the number of hours is kept
to a reasonable level.
4.0 Contract Administration
2020 Budget Section 5 - Page 88 of 106
35
Fixed or Lump Sum:
The contractor receives a fixed amount or lump sum payment based on
terms established in the contract. Typically, payment is tied to a completion
of agreed upon performance achievements. Other alternatives are possible,
such as progress payments made to compensate for activities conducted
over the specific period of the contract. This type of contract should
generally establish a minimum allowable level of compensation. With this
method of compensation, the City may not be required to pay if specific
terms in the contract are not met and thus the risk is placed on the
contractor.
Cost Reimbursement:
A cost reimbursement method of compensation has a higher risk for the City
because it reimburses the contractor for all costs incurred under the terms
of the contract. To prevent overpayment, allowable cost provisions should
be clearly identified. Contract managers should consider including a contract
provision for a maximum allowable compensation level for the contract
period and budget. Cost reimbursement contracts generally require more
fiscal pre-planning and monitoring than other methods.
Performance Based:
These contracts are based on attainment of a specific outcome. The rate of
compensation is generally negotiated based on cost information provided
by the contractor. Generally, performance-based contracts identify the
maximum allowable compensation. This allows the City to define the quality
of services in terms of performance standard and pay accordingly.
Performance based contracts differ from time and materials or fixed price
contracts in that if the quantifiable quality of service is low, the payment may
be reduced or withheld. This requires a higher level of reporting from the
contractor to the City. The contractor primarily assumes the risk because the
City does not pay if performance levels are not met.
4.3 Contract Execution & Administration
Contract Execution:
The contract is fully executed when all authorized parties have signed it.
Upon execution, signed copies of the contract should be provided to all
interested parties including, at a minimum, the contractor and Legal
Assistant.
Contract Administration:
Contract administration means any activity related to contracting, including
the decision to contract, contractor screening, contractor selection, contract
2020 Budget Section 5 - Page 89 of 106
36
preparation, contract monitoring, auditing and post contract follow up.
Typical responsibilities of the project manager include:
• Understanding the contract, including the specific contract obligations
and performance indicators by which performance will be monitored.
• Assessing the risks related to the project before soliciting proposals and
contracting to determine the extent of the monitoring required.
• Ensuring the contractor has a clear understanding of how the contract
will be managed and monitored.
• Providing the contractor with guidance and technical assistance, as
needed, to promote effective contract performance.
• Identifying the extent and source of funding for services provided.
• Monitoring the contractor’s activities to ensure quality service delivery.
Ensuring funding is used only for authorized purposes.
• Reviewing invoices and verifying that delivery of services is rendered.
• Resolving issues or problems that arise during the contract.
• Measuring and tracking satisfaction with contractor performance.
• Complying with State and City rules and regulations.
• Documenting the contract to validate that effective contract
management has occurred.
Project managers need to be mindful not to do the following:
• Instructing the contractor to begin work before the contract is executed
and approved.
• Changing the description, scope, period of performance, or cost of the
contract without processing a written amendment.
• Directing the contractor to do work that is not specifically described in
the contract.
• Signing a contractor’s contract form (some exceptions apply)
• Authorizing payment to the contractor for any work not performed
satisfactorily.
• Paying for the same or similar services more than once.
4.4 Contract Monitoring - Performance
Monitoring Contract Performance:
Monitoring means any planned, ongoing, or periodic activity that measures
and ensures contractor compliance with the terms, conditions, and
requirements of a contract. The level of monitoring should be based on a risk
assessment of the contractor’s role in delivering the services and the
contractor’s ability to deliver under the terms of the contract.
2020 Budget Section 5 - Page 90 of 106
37
The purpose of monitoring is to ensure the contractor is:
• Complying with the terms and conditions of the contract and applicable
laws and regulations.
• In compliance with the contract through identifying and resolving
potential problems and providing constructive, timely feedback.
• Adhering to the project schedule and making appropriate progress
toward the expected results and outcomes.
• Providing the quality of service expected.
Monitoring Activities May Include:
• Periodic contractor reporting – Require the contractor to submit
progress reports or other appropriate data or reports, based on pre-
defined criteria, and review the contractor’s reports for verification of
services provided and adherence to the contract. Substandard
performance should be identified and addressed timely and
appropriately.
• Invoice review – Compare billings with the terms agreed upon in the
contract. Ensure the costs being charged are within the contract
parameters.
• Other periodic contact with contractor – On-site visits to maintain
contact with the contractor to review progress on a regular basis. Good
contract monitoring includes a continuous dialogue with the contractor.
4.5 Contract Monitoring - Payment
Reviewing Invoices for Payment:
Contract payment is the process by which the contractor submits invoices
for reimbursement for services and receives payments. The contract
manager must carefully review the contractor’s request for payment to
verify the accuracy of all charges.
Considerations:
• Are the hours/costs commensurate with the services or deliverables
received?
• Is the service period identified on the invoice and were the services
rendered prior to contract expiration?
• Do the rates invoiced match the rates stated in the contract?
• Has the necessary documentation been included to verify charges
accurately? Is there enough money remaining on the contract?
• Reimbursable expenses. Below are the recommended reimbursable
expenses:
o Travel
o Mileage
2020 Budget Section 5 - Page 91 of 106
38
o Food
o Miscellaneous expenses
If charges are acceptable, the contract manager submits a claim approval
form for payment. Payment terms are 30 days from date of invoice.
4.6 Amendments & Change Orders
Amendments:
Amendments are changes to service contracts.
Changes to contracts may be processed as amendments, rather than new
contracts, but only if the changes are within the general scope of the original
contract.
Change Orders:
A change order is the formal document that alters some condition of the
contract documents. The change order may alter the contract price,
schedule of payments, completion date, terms and conditions, or the plans
and specifications. Change orders are changes to public works contracts and
reflect unforeseen conditions that must be addressed to meet the contract
requirements and without which the work requested in the original contract
could not be completed. Minor modifications that do not materially affect
the scope or cost of the contract, such as address changes or staff changes,
do not require a formal change order but should be documented in writing.
These situations should be distinguished from extra work that could stand
on its own and is outside and independent of the contract, in which case a
new competitive bid process is required. Appropriate uses of change orders
include:
Scope – Scope changes may include adding, modifying, or deleting tasks,
services, or deliverables or revising specifications. Changes to scope should
be well documented and include any additional costs associated with these
changes.
Changes that are outside the general scope of the contract or bid request
are not appropriate to award through contract change orders. Such changes
would have the effect of making the work performed substantially different
from the work defined at the time the original contract was awarded.
Terms and Conditions – Changed conditions could include price variations in
commodities.
Cost – If the cost of the contract is increased or decreased, document
reasons for change (e.g.: scope changes, changes to unit price items).
Period of Performance – An extension to the contract end date is the most
common change to the period of performance. Minor modifications that do
Tips & FAQs
Renewals vs. Year-to-Year
Contracts:
Keep in mind that including
additional periods or renewal
language in your solicitation or
contract provides for greater
continuity with terms and
conditions such as pricing, scope,
and availability. More often than
not, contractors will give
discounts for longer term
contracts.
To enter into a series of year-to-
year (or standalone) contracts,
opens up the terms and
conditions for contractors to
modify their price and
availability. Standalone contracts
require a competitive process at
each contract period and
therefore may result in higher
costs to the city.
However, if a contract includes
“options to renew” language, the
contract must be routed to
include all future renewals of the
“potential value” of the contract.
Documented Benefit to City:
All contract amendments must
have consideration for any
additional time or funds. This
means that the amendment
must state what benefit the
contractor will provide to the City
in exchange for the increased
time or payment amount.
Contact the City Attorney with
questions.
2020 Budget Section 5 - Page 92 of 106
39
not materially affect the scope or cost of the contract, such as address
changes or staff changes do not require a formal change order but should be
documented in writing.
Amendment and Change Order Approval:
• Amendments and change orders that do not change the total value of
the agreement contract (i.e.: a new expiration date) may be signed by
the City Manager or designee.
• Accumulated cost changes up to 10% of the original agreement or
contract amount may be approved by the City Manager or designee, if
there is budget capacity and available revenues.
• Accumulated cost changes greater than 10% of the original agreement
or contract amount must be approved by the City Council. Such approval
establishes a new agreement or contract amount against which the
above percentages apply for subsequent amendments or change orders.
• The City Council may pass a resolution on an individual project giving the
City Manager the authority to sign all amendments and change orders
within the allotted project budget, superseding the 10% limit.
To protect the City’s interests, all amendments or change orders shall be
executed in writing prior to the end of the contract period of performance
and before the contractor begins work as authorized by the amendment.
4.7 Contract Close-Out & Termination
Contract Termination:
Contracts may be terminated prior to the completion date of the contract
either for convenience of the parties or for cause. Contact the City Attorney’s
Office for guidance when considering a contract termination.
Contract termination should be done in writing and follow the process
described in the contract or as advised by the City Attorney.
Contract Close-Out Process:
Once the contract is complete, it is critical that the project manager
complete the close-out process in a timely manner and stay on a schedule.
1) Notice of Completion of Public Works Contract. Required for
projects totaling $35,000 or more. The project manager should
complete and file a “Notice of Completion of a Public Works
Contract” form with the Department of Revenue, Department of
Labor and Industries, and Employment Security Department. This
form is available on L&I’s website.
2020 Budget Section 5 - Page 93 of 106
40
2) Receive release letters from Employment Security Department,
Department of Revenue, and Department of Labor & Industries.
These letters will be sent either by mail or through that department’s
web portal.
3) Release retainage. Once the above-mentioned letters are received,
the project manager should request that the Finance Department
release retainage by a memo or coversheet along with a copy of the
letters received.
a) Release retainage bond. If the contractor provided a bond
instead of having the City hold retainage, the project manager
should contact the bond issuer to release the bond.
b) Escrow release. If the contractor requested that the City hold
retainage in an escrow account, the project manager should
provide a written release to the bank.
Liens
Whenever a valid lien has been filed against the retainage, the City may
only release that amount of the retainage in excess of the total amount of
the valid lien claims and an amount sufficient to defray the costs and
attorney’s fees of the claimants in foreclosing the liens.
Invoices Submitted after Close-Out Process
Invoices that are submitted after contract expiration may still be paid if the
following conditions apply:
• Invoice or pay estimate clearly shows that services were preformed prior
to contract expiration.
• Sufficient funds existed prior to close-out.
Every effort should be made to process invoices in a timely manner to
eliminate delays and extra steps in payment processing
2020 Budget Section 5 - Page 94 of 106
41
5.1 General Information
It is the policy of the City of Port Townsend to provide the best possible
stewardship and management of municipal assets in the best interests of the
residents of Port Townsend.
PTMC Chapter 3.44 sets forth the City’s processes for disposition of surplus
property and long-term leases. The information in this policy manual is
intended summarize the code requirements.
5.2 Declaring Surplus
A department head or operations manager may recommend that personal
or real property under his or her control is deemed no longer to have any
value and may desire to surplus that property.
• If the property has an estimated value under $10,000, the City
Manager may declare that it is surplus.
• All personal property with an estimated value greater than $10,000,
and any real property must be declared surplus by the City Council.
• All personal property acquired with utility funds may be transferred
to and used by a non-utility department if the property is of de
minimis monetary value. Disposition of utility assets must have an
administrative hearing by the City Manager.
Criteria for declaring surplus is based on one or more of the following:
• The City has or soon will have no practical, efficient, or appropriate
use for the property, nor will it have such a use for the property in
the near future.
• The purpose served by the property can be accomplished by use of
a better, less costly, or more efficient alternative;
• The purpose served by the property no longer exists as determined
by a change of policy evidenced by an ordinance or resolution of the
City Council;
• The property is damaged, worn out, or otherwise inoperable and the
cost of repairing the same is unwise or impractical.
5.0 Surplus and Disposition of
Assets
Tips & FAQs
Surplus is any City property
and/or asset that is no longer
deemed valuable or of use to the
City now or in the foreseeable
future.
Estimated value of property
should be the amount of money
or interest a third party would be
willing to pay. Estimating values
may be determined through
obtaining an estimate, an official
appraisal, an offer from another
agency, Kelly Blue Book value, or
other sources.
2020 Budget Section 5 - Page 95 of 106
42
5.3 Disposition of Personal Property
Departments that determine they have surplus property should first make
these items or equipment available to other City departments when
reasonable. If the item is no longer of value to the City, staff may do the
following:
• Sell or transfer the item(s) to another government agency, subject to the
public notice and hearing requirements of RCW 39.33.020 for items with
a value in excess of $50,000.
• Auction the item(s). The originating department will be responsible for
all costs associated with this option. Finance will coordinate the auction
with the department representative.
• Sell the item through a sealed bid process.
• Trade the item(s) in for new replacement equipment.
• Send the item(s) to the State surplus program.
• Donate the item(s) to a non-profit that serves or benefits low-income
persons or persons with disabilities. (Be sure to obtain a receipt for
record retainage.)
• Dispose of the item(s) in the most cost effective, efficient manner.
A department head or designee that is responsible for the disposition of
property or assets. They should sign the “Declaring Surplus Memo” to the
City Manager. The memo should be a detailed statement of the item(s),
where the asset is located, the estimated value and the recommended
disposition procedure. Send the memo to the Finance Department to
coordinate obtaining the City Manager’s or Council’s approval.
Once approval has been granted to dispose of the property, the receiving
individual or organization must sign an “As-Is/Where-Is” Statement and/or
Liability Waiver. The signed form must be forwarded to the Finance
Department for record retainage.
Within 24 hours of receipt, proceeds from any sale and sales tax collected
will be forwarded to the Finance Department to be deposited. Sales tax will
be remitted to the Department of Revenue on the next reporting cycle.
Prior to sale, remove all City logos or other markings identifying the item(s)
as City property from any vehicles and or equipment prior to sale.
2020 Budget Section 5 - Page 96 of 106
43
5.4 Seizure Items (RCW 69.50.505)
The Port Townsend Police Department follows their Asset Forfeiture Policy
(Policy 601) in regards to the authority and procedures for the seizure,
forfeiture and liquidation of property associated with designated offenses.
5.5 Surplus of Real Property (Land)
The City Council shall make all decisions that relate to surplusage of real
property in accordance with Chapters 35.94 and 39.33 RCW and whether
property should be designated to meet affordable housing needs and
surplused or retained for that purpose. Because real property should
perform a valuable public function, the City Council should consider both
current use and any foreseeable future use when surplusing real property.
Pursuant to PTMC 3.44, affordable housing needs will be considered before
surplusing public lands.
The City Council shall hold a duly-noticed public hearing prior to disposing of
real property or designating that the property may meet affordable housing
needs and be surplused or retained for that purpose. All procedural
guidelines shall be followed in accordance with the code.
6.1 Purchasing Cards as a Method of Payment
In accordance with RCW 43.09.2855, local governments are authorized to
use credit cards or procurement cards for official government purchases and
acquisitions.
The City of Port Townsend’s purchasing card program has been established
to provide a convenient, efficient means to purchase commodities and
services from vendors and reduce the costs associated with a purchasing
process. The City has obtained purchasing card participation in the
statewide contract with US Bank as administered by the Washington State
Department of Enterprise Services (DES). A benefit of using the contract is
that it allows the City to earn a quarterly rebate based on the volume spent
and timely payment.
6.0 Purchasing Cards
Tips & FAQs
Be mindful of your budget
appropriations when using your
purchasing card as a method of
payment.
2020 Budget Section 5 - Page 97 of 106
44
The program is designed to empower employees to purchase items needed
for operational City business. It is a method used to pay for purchases and
is not meant to circumvent the purchasing policies or bidding procedures.
6.2 Purchasing Card Administration
Purchasing cards (p-cards) are administered by the Finance Department.
The purchasing card program administrator maintains the accounts and is
authorized to make necessary changes and updates, corresponds with the
bank to resolve issues, orders p-cards, reconciles purchases made during the
billing cycle to the bank statement, verifies accuracy of supporting
documents and signatures, maintains records, and assures timely payment.
All purchasing cards will have the “City of Port Townsend” embossed on the
card with the cardholder’s name. It is not permitted to allow anyone other
than the cardholder to use a card to make purchases.
Approval to participate in the purchasing card program will be determined
by the applicable department head. It is recommended that employees
complete their initial probationary period before being eligible to have a
purchasing card issued to them. (Exceptions to this may be made with
authorization from the Finance Manager). Prior to releasing the purchasing
card to the employee, the cardholder will:
1. Attend training to cover the City’s purchasing policies and
procedures.
2. Attend training to cover p-card procedures for US Bank Online
purchasing card transaction management.
3. Acknowledge they have received, read and understood the City’s
Purchasing Policy and Procedures Manual by signing a Cardholder’s
Agreement Form.
Department heads or their designees will ensure employees approve their
charges and submit the proper supporting documentation, assign correct
fund and account numbers (BARS Codes) and descriptive information for
each charge, approve the charges online, print activity statements, and
submit paperwork to the program administrator in Finance within five days
of the billing cycle close date. Failure to comply with these policies and
procedures may result in suspension of an employee’s privilege of using a
City issued purchasing card. Improper use of the p-card may result in
disciplinary action up to and including termination of employment.
Tips & FAQs
CDL licenses and renewals and
work boots should be purchased
initially by the employee. The
receipt for these items should be
submitted to the employee’s
manager for reimbursement.
2020 Budget Section 5 - Page 98 of 106
45
6.3 Authorized Charges and Uses
As authorized, employees will use their p-cards at time of purchase for
operational materials, supplies, small equipment, postage, subscription
services, professional memberships, ordinary maintenance, services, CDL
physicals, and authorized business travel expenditures. (Please see the City’s
Guidelines for Employee Travel for detail on authorized travel expenditures).
Purchasing cards may be used at any vendor that accepts VISA credit.
When making a purchase:
• The cardholder must obtain a vendor’s register receipt or invoice
(Proof of Purchase). Packing slips and statements are not substitutes
for receipts or invoices.
• Register receipts and invoices should include transaction detail such
as date of purchase, a description of each item, tax, shipping, and
total. If the vendor does not issue a detailed receipt, it is the
employee’s responsibility to write a description of the purchase(s)
on the receipt.
• If a receipt is lost or the cardholder is unable to obtain a receipt, a
“Declaration of Lost Invoice” Form must accompany the reconciled
statement in place of the receipt. Employees who routinely do not
submit actual invoices/receipt may have their purchasing card
benefits suspended.
• Follow the purchasing requirements outlined in the Purchasing
Policies and Procedures Manual.
6.4 Unauthorized Purchases
Cardholders must comply with the State bidding and purchasing laws and
the City’s Purchasing Policies when using a purchasing card.
Examples of unauthorized uses and purchasing include:
• Personal purchases of any kind
• Cash advances through ATMs or banks
• Cash refunds for returned items
• Items restricted by City policy or State law, such as alcohol, tobacco,
and entertainment
• Any items from vendors restricted by the Finance Department, a
department head, or the City Manager
Examples of inappropriate uses:
2020 Budget Section 5 - Page 99 of 106
46
• Any purchase in which the purchasing card is used to circumvent City
or State polices, bid limits, or a cardholders personal purchasing
limit.
• Any purchase made on a cardholder’s account by someone other
than the cardholder.
6.5 Returns and Exchanges
Cardholders are responsible for contacting the vendor when supplies,
equipment, and services purchased with the p-card are not acceptable
(incorrect, damaged, defective, not received) and for arranging a return for
credit or exchange.
• If items are returned for credit, the cardholder is responsible for
obtaining a credit receipt from the vendor to include in the monthly
purchasing card reconciliation.
• If items need to be exchanged, the cardholder is responsible for
returning the items to the vendor and obtaining a replacement as
soon as possible.
• If items are disputed, the cardholder is responsible for resolving any
disputes directly with the vendor. If resolution is not possible,
contact the Program Administrator.
6.6 Account Maintenance
Online account maintenance:
US Bank Online account maintenance is the responsibility of the cardholder.
If an employee is locked out of their account, they should contact US Bank
directly. The customer support number is listed on the back of the
purchasing card. Please see the US bank Purchasing Card Instruction
Guidelines for online account maintenance or call the purchasing card
administrator in the Finance Department.
Name changes:
Changes to a cardholder’s name should be reported to the program
administrator. A new card will be issued in the employee’s name. The
cardholder should surrender the old p-card to his or her department head or
to the program administrator.
Lost or stolen card or fraud detection:
Cardholders are responsible for their own card security. In the event the
cardholder loses their card, suspects fraudulent activity on the card, or the
card is stolen, they should contact US Bank immediately. In addition, the
cardholder should contact the program administrator.
2020 Budget Section 5 - Page 100 of 106
47
Termination of employment or revocation of purchasing card privilege:
Cardholders must turn in their purchasing card to their department head,
Human Resources, or the program administrator in the event they terminate
their employment with the City, or they have had their purchasing card
privileges revoked.
Spending Limits:
Spending limits will be requested by the applicable department head and
approved by the Finance Department. In general, authorized spending limits
will be established as follows (single transaction limit/monthly cycle limit):
• $5,000/$5,000 – department heads and purchasing card program
administrator
• $2,500/$5,000 – department managers, supervisors, department
purchasing designees
• $1,000/$2,500 – maintenance and operator staff
• $500/$1,500 – others as assigned.
Exceptions to these general guidelines will be reviewed at the request of the
applicable department head.
2020 Budget Section 5 - Page 101 of 106
48
A&E: Architectural and engineering services; includes land surveyors and landscape architects.
Appropriation: City Council authorization to expend funds for a specific purpose.
Bid: A written proposal submitted by a vendor or contractor to furnish supplies, materials, equipment, or
services in conformity with the City’s specifications included in a request for bids by the City.
Bidding: Procedure used to solicit quotations on price from various prospective providers of supplies,
materials, equipment, or services.
Bid Evaluation: A review of bids/proposals received as a result of a competitive process to determine
bidders’ responsibility, responsiveness to requirements, and to determine the successful bidder(s).
Bid Opening: The official process in which sealed bids are opened, usually in the presence of one or more
witnesses, at the time and place specified in the invitation for bid. Each bid is logged, and bids are made
available for public inspection only after award of the contract. The bid opening must be open to the public.
Bid Deposit (also called a bid bond): A deposit in the form of a cashier's check, postal money order, or
surety bond equal to 5% of the amount of the bid. Required for all formally bid public works projects.
Bid Splitting: Breaking a public work project or purchase into segments. The City may not split a project or
purchase to avoid compliance with bidding statutes (RCW 35.23.352(1)).
Capital Equipment: Equipment of the City having an initial value of one thousand ($1,000) or more and an
estimated useful life of three or more years.
Change Order: An amendment to a public works contract, signed by both parties and outlining the mutually
agreed upon changes to contract time, payment amount, or scope of work, as applicable.
Contract: A legally binding and enforceable written agreement between two or more parties stating the
terms and conditions for an exchange of something of value (usually money, goods, or services) between
parties. The Legal Department should be contacted if there is uncertainty as to the need for a written
contract and how to go about it.
Contractor: Individual, company, corporation, firm, or combination, with whom the City develops a
contract for the procurement of goods and services.
Cooperative Purchasing (also called piggybacking): The action taken when two or more entities combine
their requirements to obtain advantages of volume purchases including administrative savings and other
benefits.
DES: Washington State Department of Enterprise Services.
7.0 Definitions and Acronyms
2020 Budget Section 5 - Page 102 of 106
49
Delivery Terms: Conditions in a contract relating to freight charges, place of delivery, time of delivery, or
method of transportation.
Effective Date of Contract: The date on which the contract starts.
Emergency: Unforeseen circumstances beyond the control of the agency that present a real, immediate,
and extreme threat to the proper performance of essential functions or which may reasonably be expected
to result in excessive loss or damage to property, bodily injury, or loss of life.
Emergency Purchase: A purchase in which the normal competitive purchasing procedures have been
waived by a declaration of emergency issued by the City Council or City Manager.
Encumbrance: Interchangeable with “purchase order.”
Equitably distribute opportunities: Means that the local government may not favor certain contractors on
the appropriate small works roster over other contractors on the same roster who perform similar services.
Formal Competitive Bid: The process of advertising and receiving sealed written bids from prospective
vendors or contractors. The selection of the vendor or contractor is primarily based on the lowest cost
from a responsible vendor.
General Services: Interchangeable with “purchased services.”
Goods and Services: Material, supplies, services, and equipment offered for purchase by a vendor or
contractor and required by an agency to accomplish continuing and necessary functions.
Informal Solicitations: Price quotes from vendors that are obtained using a variety of mediums such as
phone, fax, email, or writing. Results must be documented and submitted to the Finance Department to
obtain a purchase order (encumbrance). The selection of the vendor is based on lowest cost from a
responsible vendor.
Interlocal Agreements: The exercise of governmental powers in a joint or cooperative undertaking with
another public agency.
L&I: Washington State Department of Labor and Industries.
MRSC: Municipal Resources and Services Center. A Washington-based non-profit that provides
information and educational services to local government agencies. The City of Port Townsend uses MRSC’s
vendor, consultant, and small public works rosters.
Ordinary Maintenance: Defined by WAC 296-127-010 as: “ work not performed by contract and that is
performed on a regularly scheduled basis (e.g., daily, weekly, monthly, seasonally, semiannually, but not
less frequently than once per year), to service, check, or replace items that are not broken; or work not
performed by contract that is not regularly scheduled but is required to maintain the asset so that repair
does not become necessary.”
2020 Budget Section 5 - Page 103 of 106
50
Personal Services: Interchangeable with “professional services.”
Prevailing Wage Rate: The rate of hourly wage, usual benefits, and overtime paid in the locality to the
majority of workers, laborers, or mechanics in the same trade or occupation; required to be paid on all
public works and public building service maintenance contracts. These rates are set by L&I.
Professional Services: Services that involve technical expertise provided by a consultant to accomplish a
specific study, project, task, or other work. These activities and products are mostly intellectual in nature
and do not include architectural and engineering (A&E) services. Examples of personal services include
accounting, legal, comprehensive planning, and real estate services.
Proposal: An offer to perform a contract to supply goods or services in response to a request for proposal
(RFP).
Purchase: The buying, leasing, renting or lease-purchasing of goods or services.
Purchase Order (also called encumbrance): A form issued by the Finance Department or Legal Assistant,
which reserves the purchase amount in the applicable fund and can sometimes serve as a written request
to a vendor to provide the item being purchased.
Purchased Services (also called general services): Services that are generally routine, repetitive, or
mechanical in nature and support the City’s day-to-day operations. Purchased services include janitorial,
debt collections, equipment service agreements, machine repair, or delivery services.
Public Work: A project including all work, construction, alteration, repair, or improvement other than
ordinary maintenance executed at the cost of the City. Public work projects include the related materials,
supplies, and equipment to complete the project.
Purchase Order (Encumbrance): Official document used in authorizing the encumbrance of City funds
toward a purchase.
Quotation: An offer, including price, to perform a contract to supply goods and/or services in response to
a request for quotation.
Request for Proposals (RFP): A process that requests interested firms to submit a statement of their
proposal for completing a project. Proposals are evaluated based on suitability, practicality, quality of the
proposal, experience, and cost.
Request for Qualifications (RFQ): a request for only a firm’s general capabilities, including a list of principals,
previous projects, number of employees, and licenses. An RFQ doesn’t not including pricing information.
Requisition Form: A standard form providing detail information as to quantity, description, estimated
price, vendor, fund account, signature, and other information necessary to make a purchasing decision.
Responsible Bidder: Contractor, supplier, or vendor who is determined to be qualified to provide services
or goods to the City based on the criteria in RCW 39.04.350.
2020 Budget Section 5 - Page 104 of 106
51
Responsive Bidder: An entity whose bids conforms in all material respects to the terms and conditions, the
specifications, and other requirements of a solicitation.
Sealed Bid (Formal Bid): An advertised solicitation for a requirement in which the cost exceeds the bid limit.
The bids are opened during a public opening.
Sole Source (also called a single source purchase): An exception to competitive bidding. A purchase of
goods or services that is clearly and legitimately limited to a single source of supply in which the purchase
price may be best established by direct negotiation.
Solicitation: Notification to prospective bidders about a future project or purchase, with a request for
competitive bids, quotes, or proposals.
Splitting: The separation of continuing/repetitive requirements for the same good or service into several
purchases to avoid dollar limitations or competition.
Small Works Roster: List of contractors by work category who have registered with MRSC and requested
to be notified by the City about upcoming projects or purchases and bid opportunities.
Specification: A clear, complete, and accurate statement of the technical requirements descriptive of a
material, item, or service.
State Contract: Contracts for goods or services administered by the Department of Enterprise Services on
behalf of agencies. The contract document will identify the conditions under which usage by agencies is
allowed.
Subcontractor: A person or business that is, or will be, providing or performing an essential aspect of a
contract under the direction and responsibility of the primary contractor.
Supplier: A vendor of purchased goods and services.
Surplus Property: Personal property belonging to the City for which the City has no further use.
Vendor: A provider of materials, supplies, goods, or equipment.
2020 Budget Section 5 - Page 105 of 106
2020 Budget Section 5 - Page 106 of 106
CITY OF PORT TOWNSEND, WASHINGTON,
GENERAL GOVERNMENT DEBT, UTILITY & INTERGOVERNMENTAL
DEBT AND INTERFUND LOANS
The City issues long-term debt instruments to finance large capital project investments.
These debt instruments may include tax-exempt bonds, intergovernmental loan
programs and inter-fund loans. State law limits the amount of debt the City may issue.
The following is a summary of the types of debt and their associated debt limits:
General Government Debt
General obligation bonds may be issued through voted or non-voted bonds. Debt
capacity is limited to certain percentages of the City’s total assessed property value
(AV). Voted bonds require a 60% majority vote to pass. The statutory debt limits are as
follows:
•General obligation bonds are limited to 2.5% of the City’s current AV. Of this
2.5%, non-voted (councilmanic) debt is limited to 1.5% of the City’s current AV.
•General obligation voted bonds can be issued for parks and open space up to
2.5% of the City’s current AV.
•General obligation voted bonds can be issued for utility purposes up to 2.5% of
the City’s current AV.
The City’s total non-voted debt will have an outstanding balance of $16,174,000 as of
January 1, 2020. Principal payments on the outstanding non-voted debt for 2020 are
$749,503, due on December 1, 2020.
Currently the City has four outstanding councilmanic bond issues:
1.Series 2010 Limited Tax General Obligation bonds issued for sidewalks,
utility and street improvements, and Carnegie Library retrofit. Outstanding
balance as of January 1, 2020 - $2,950,000.
2.Series 2012 Limited Tax General Obligation Refunding bond issue, refunded
1999 bonds and a portion of the 2002, 2003 and 2005 general obligation
bonds. Outstanding balance as of January 1, 2020 - $2,175,000.
3.Series 2017 (Series A & B) Limited Tax General Obligation bonds issued to
refund the Series 2008 bonds and to finance road and sidewalk
improvements, tourism, infrastructure and waterfront access improvements.
Outstanding balance as of January 1, 2020 - $10,215,000.
4.Series 2018 Limited Tax General Obligation bond issued to fund the
Homeward Bound/Cherry Street affordable housing project. Outstanding
balance as of January 1, 2020 - $834,000
In February 2015, 71.37% of the voters of the City of Port Townsend approved a ballot
measure to authorize the City to issue up to $3,600,000 in bonds for the Mountain View
Commons energy retrofit and other campus improvements. The bonds were issued in
June 2015 in the amount of $3,385,000, with a net interest cost of 3.06%. The annual
debt service will be $302,400 in 2020. The City will levy property taxes in the amount of
2020 Budget Section 6 - Page 1 of 6
$150,000. The remainder of the debt service will be funded by Special Purpose Sales
Tax receipts. Outstanding balance as of January 1, 2020 - $2,835,000
General Obligation Line of Credit
The City Council authorized the City Manager to execute an agreement with Cashmere
Valley Bank to provide a line of credit for $1,500,000 in November 2014. In November
2017, the City Council voted to approve Ordinance 3186, amending Ordinance 3123, as
amended by Ordinance 3157, to extend the maturity date of the note an additional
eighteen months to May 31, 2019. On May 13, 2019, the City Council voted to approve
Ordinance 3227, establishing a new line of credit for $1,500,000 to be used to repay the
existing line of credit maturing on May 31, 2019 and to finance capital improvements to
city streets and facilities. The new line of credit is with Cashmere Valley Bank and
matures on June 1, 2021.
As of the end of 2020, the City intends to have an outstanding balance of $840,000 on
the line of credit. The City will need to find permanent financing and may either
refinance the series 2010 bonds and add additional debt in late 2020 or use cash
reserves to fund the following projects:
• Water Street Overlay - $225,000 for cost increases for the Street component
of the project
• Water Street Overlay - $270,000 for cost increases for the Storm component
of the project
• Discovery Road - $250,000 for City match for design and construction
• Mt View Phase III - $60,000
• SR20 Pedestrian Walkway - $35,000 for the feasibility study
Inter-fund Loans
The City will have one outstanding inter-fund loan in 2019 for $90,000. The loan will be
from the Transmission Line Fund to the Community Services Fund for $90,000 for a
term of 3 years at an interest rate equal to the average LGIP investment interest rate for
the loan term. The loan is to provide the Community Services Fund the ability to
contract with BERK Consulting, Inc. to perform a comprehensive park study. Annual
payments will be made from the annual reduction in the Mountain View lease, beginning
in 2020.
2020 Budget Section 6 - Page 2 of 6
Debt Financial Policies
The City Council adopted financial policies allow for annual debt payments on General
Government obligations for capital improvements that cannot be funded out of current
revenues. These annual debt payments should not exceed 15% of the total of annual
General Government operating revenues plus budgeted transfers from capital funding
sources. General Government Funds include the General Fund, Contingency Fund and
Special Revenue Funds.
The following chart and table reflect the current general obligation non-voted and voted
bond debt capacity based on the Jefferson County Assessor’s 2019 preliminary
assessed values for 2020 taxes; preliminary assessed values increased by
approximately 13.0%, consequently, increasing the City’s available debt capacity:
GO Debt Service as a % of General Government Revenue
2016
Actual
2017
Actual
2018
Actual
2019
Estimated
2020
Budget
Annual Debt Service as a % of Revenue Less than 15%11.5% 10.4% 10.4% 10.2% 12.0%
2020 Budget Section 6 - Page 3 of 6
Utility & Intergovernmental Debt
The City has funded utility/public works projects with intergovernmental loans from the
Public Works Board (Public Works Trust Fund loans used to fund public work projects)
and the State Revolving Fund (Department of Ecology low interest loans for water
quality projects). These loans are repaid from utility revenues rather than property tax
revenues. Loan payments for 2020 for utility debt are budgeted at approximately
$1,450,000 for principal and interest combined. As the city draws on these loans the
payment schedules and outstanding principle changes. Currently, the outstanding
principal on utility debt at the end of 2019 is $17,792,610.
In January 2017, the City’s new drinking water treatment facility and reservoir,
estimated cost of approximately $24 million, were placed in service. Public Works Trust
Fund Loans and Drinking Water State Revolving fund a significant portion of this
2019 Assessed Valuation (1)1,869,815,188$
General Purposes - Non-Voted
Non-voted General Obligation Debt Capacity (1.50% of AV)28,047,228$
Less: Outstanding Non-voted General Obligation Debt (2)(15,424,497)$
Less: Outstanding Line of Credit Balance (3)(840,000)$
Remaining Non-Voted General Obligation Debt Capacity 11,782,731$
Percent of Non-Voted Debt Capacity Remaining 42.01%
General Purposes - Requires Voter Approval
Voted General Obligation Debt Capacity (1.00% of AV)18,698,152$
Less: Outstanding Voted General Obligation Debt (2,640,000)$
Less: Outstanding Line of Credit Balance (3)-$
Remaining Voted General Obligation Debt Capacity 16,058,152$
Percent of Voted Total Debt Capacity Remaining 85.88%
Parks and Open Space Purpose - Requires Voter Approval
Voted General Obligation Debt Capacity (2.50% of AV)46,745,380$
Less: Outstanding Voted Debt for Parks -$
Remaining Voted Debt Capacity for Parks 46,745,380$
Utility Purpose - Requires Voter Approval
Voted General Obligation Debt Capacity (2.50% of AV)46,745,380$
Less: Outstanding Voted General Obligation Debt for Utility Purpos -$
Remaining Voted Debt Capacity for Utility Purpose 46,745,380$
Notes:
(1) Estimate from County Assessor's Preliminary Valuations 2018 Assessments for 2019 Taxes
(3) Line of credit for $1,500,000 authorized by Council on 11/3/14; renewed 11/6/17 & 5/13/19;
estimated draws through 12/31/2019 with permanent financing secured in 2020
(2) Includes only LTGO Bonds issued through 2018. Other general obligation debts may
count against debt capacity. Includes principal payments through 12/31/2020.
2020 Budget Section 6 - Page 4 of 6
project. The City’s contribution for this project was approximately $2,500,000 and was
funded through transfers from the System Development Fund and reserves in the
Water/Sewer Operating and Capital funds.
Repayment of the loans will come from utility revenues, which include a capital
surcharge that is currently being assessed. A utility debt reserve fund has been
established to reserve collected surcharge amounts for these future debt payments. At
the end of 2020, the debt reserve fund is estimated to have a fund balance of
approximately $2,500,000.
Utility Line of Credit
The City Council authorized the City Manager to execute an agreement with Kitsap
Bank to provide a line of credit for $3,000,000 in February 2016. This line of credit is
used to fund vendor payments in advance of receiving loan/grant funding from state or
federal agencies or to provide interim financing while permanent financing options are
reviewed. The line of credit matured in March 2018 and the City subsequently renewed
the line of credit through March 1, 2021.
As of the end of 2020, the City intends to have an outstanding balance of $1,885,000 on
the line of credit. The City will require permanent financing prior to May 31, 2021. The
following projects require funding:
• 5mg Reservoir & LTII Treatment Plant - $1,250,000 for City match for the
project
• Big Quil Diversion Dam - $635,000 for project costs over the original project
estimate
2020 Budget Section 6 - Page 5 of 6
2020 Budget Section 6 - Page 6 of 6
CITY OF PORT TOWNSEND, WASHINGTON
STAFFING AND COMPENSATION SUMMARY
The City of Port Townsend employs over 100 individuals. City employees are made up
of four groups:
•General Government Bargaining Unit - employees who are members of the
Local Union No. 589 of the International Brotherhood of Teamsters
•Police Department Bargaining Unit - employees who are members of the Local
Union No. 589 of the International Brotherhood of Teamsters
•Non-represented management, library and “confidential” employees who do not
belong to any bargaining group
•Part-time and temporary/seasonal employees
Compensation and benefits for the two Teamsters bargaining units are negotiated and
certain wage changes, pay scales and benefit packages are administered based on the
contractual agreements.
2020 Budget Assumptions for General Government Agreement
The General Government Agreement covers Public Works, Development Services,
Finance and Police Administration employees. The General Government Agreement
with the Teamsters defines the pay scales, seniority rates and annual inflationary
adjustments to salaries for this group of employees. The proposed 2020 budget was
prepared by reviewing each employee’s position and seniority as compared to the wage
charts. The contract agreement for these employees expires December 31, 2021 and is
currently under negotiation.
Full time employees receive a full benefit package that includes health, life, dental and
retirement benefits. The current contract calls for employees in this group to contribute
10% of the total cost of the medical benefit costs for themselves and any covered
dependents, which is how the city budgeted these costs. Teamster benefit rates are
budgeted to increase 2.0% in 2020.
2020 Budget Assumptions for Police Agreement
The Police Agreement with the Teamsters defines the pay scales, compensated hours,
seniority rates and cost of living adjustments to salaries for police officers and
sergeants. The two-year agreement with the Police bargaining unit will expire on
December 31, 2020.
2020 Budget assumptions are forecasted with a cost of living increase of 2.0% per the
contract agreement. Full-time employees receive a full benefit package that includes
health, life, dental and retirement benefits. Employees contribute 10% of the medical
2020 Budget Section 7 - Page 1 of 8
benefit costs for themselves and any covered dependents. Teamster benefit rates are
budgeted to increase 2.0% in 2020.
2020 Budget Assumptions for Non-represented employees
The non-represented employee group is made up of management and professional
level staff, part-time pool staff, library staff, and confidential/administrative staff. This
group has no formal contractual agreement and benefit and wage increases have
historically been dictated by performance and availability of budget dollars. Full time
employees receive a full benefit package that includes health, life, dental and retirement
benefits. Employees contribute 15% of the total cost of these benefits for themselves
and any covered dependents. Medical benefit rates are forecasted to increase 2.0%
which is partially offset by a 2.0% discount for well city designation. Employees may
choose from two dental plans. The Dental premiums are budgeted to increase 1% for
2020. There are no increases forecasted for Vision benefit rates.
A classification scale and compensation policy for non-represented employees was
approved by the City Council in 2015 to formalize wages and establish a predictable
compensation system. Wage scales for this group of employees are updated each year
with inflationary increases and new positions.
The 2020 budget includes a cost of living adjustment for non-represented employees of
3.0%.
Minimum Wage
Initiative 1433, approved by Washington state voters in 2016, required a statewide
minimum wage of $11.00 per hour in 2017, $11.50 in 2018, $12.00 in 2019 and $13.50
in 2020. For 2020, this $1.50 per hour is a 12.5% increase. This increase impacts pool
and seasonal wage rates. Additionally, the increase begins to impact higher level
position through wage compression. Wage compression occurs when pay adjustments
regardless of experience, skills or seniority increase the base wage and bring those
wages closer to the wages of more senior, experienced, skilled positions. Human
Resource will continue to monitor the impact of minimum wage adjustments on all City
positions.
Recruiting Staff, Succession Planning and Best Practices
The city continues to strive to foster a healthy City organization through investing in
leadership development and training and adopting and implementing best employment
practices.
Human Resources continues to develop career pathing and city-wide training
opportunities for growth for existing employees and to enhance the city’s ability to retain
valued employees will continue. The Council financial policies target 1% of salaries for
spending on department level training and 1% of salaries for City wide training
expenditures. The 2020 budget includes these resources. Department managers work
2020 Budget Section 7 - Page 2 of 8
with the Human Resources team to implement training that both ensures regulatory
compliance in required certification programs as well as employee education and
professional development programs.
The City adopted an updated Accident Prevention Program in January 2019. The city-
wide training program for 2019 was largely centered around trainings that helped
implement the new program including Respiratory Safety, Lock Out Tag Out,
Bloodborne Pathogens and continue Hazard Communication and First Aid/CPR
training. Additionally, an employee financial management workshop was held as well
as Respectful Workplace Anti-Harassment training.
In 2019, the Police Chief has also requested an additional position to assist in a county-
wide effort to coordinate benefits and resources to homeless and other people in need.
The City was unable to fund that position and was placed on the unmet needs list. In the
first 1uarter of 2019, MCS Counseling received a grant from the One-Tenth of One
Percent sales tax fund to provide a part-time 27 hour per week Navigator for 2019 and
2020. The Navigator will assist police with the increasing number of calls for service for
individuals with mental health and/or substance abuse disorders. In June of 2019, the
Council authorized funding to MCS for an additional 13 hours per week, making this
position available 40 hours per week in Port Townsend. The new Navigator has already
made a positive impact in the community, linking at risk individuals with services for
mental health care, substance abuse treatment, housing, medical care, food,
transportation and other needs. The services provided by the Navigator help extend the
police staff through the consulting service, but the Navigator position is not included in
the total number of authorized staff positions.
The Community Services Department has requested the approval of a Volunteer
Coordinator position for the past several years. The City has been unable to fund this
position. During 2019, the City Attorney reviewed our prosecutor’s case load and was
presented with an opportunity to contract with the County Prosecutor’s office to handle
these cases. With the execution of this contract, the City eliminated the City Prosecutor
position. The annual savings related to this change was $55,000 to the General Fund.
In March 2019, City Council authorized the addition of a Parks & Community Services
Administrative Support Specialist with an estimated cost of $77,000 to be largely funded
by the savings from the change in prosecutorial services. This position will provide
volunteer coordination along with managing facility rentals and providing support to the
Parks, Recreation and Community Services Director.
The 2020 budget includes requests for seasonal help for parks & recreation,
Streets/Storm-water/Waste-water. Due to difficulties recruiting seasonal help in 2018,
the budgeted wage was adjusted to $15.00 per hour for 2019 and this rate is also
budgeted for 2020. These positions are critical to assist with managing fast growing
vegetation during the spring and summer months, among other assignments.
No new positions are proposed in the 2020 budget. New positions requested include an
additional Police Officer, Public Records Officer, an Administrative Assistant for
2020 Budget Section 7 - Page 3 of 8
Administration and a Maintenance Worker for Streets and Wastewater Collection.
Equipment Operator. These positions have been added to the Unmet Needs/Deferred
Items list and will be evaluated in the future should sustainable funding become
available for new positions
A chart below shows the trend by department of authorized staffing changes in the last
five years:
CITY OF PORT TOWNSEND - AUTHORIZED POSITIONS *
Department/Division 2016 2017 2018 2019 2020
2020
vs
2019
2020
vs
2018
General Government
City Manager 2 .0 2.0 2.0 2.0 2.0 0.0 0.0
City Attorney 3.6 3.6 3.6 3.6 2.6 -1.0 -1.0
Development Service & Planning 7.3 8.3 8.3 8.3 8.3 0.0 0.0
Finance & Utility Billing (UB)6.1 6.4 6.0 6.3 7.5 1.3 1.5
Police Admin & Operations 18.0 19.0 19.8 20.0 19.8 -0.2 0.0
City Clerk/Human Resources 3.8 5.0 5.0 5.0 4.0 -1.0 -1.0
PEG TV Studio 0.0 0.0 0.0 0.0 0.0 0.0 0.0
City Events, Facilities & Restrooms 3.5 3.5 3.5 3.5 4.0 0.5 0.5
Street 2.1 2.1 2.2 2.2 1.9 -0.3 -0.3
Parks Maintenance & Recreation 3.5 4.2 4.2 4.5 4.0 -0.5 -0.2
Pool 6.9 7.7 7.9 8.3 8.0 -0.3 0.1
Library 9.6 9.6 9.6 9.6 8.9 -0.8 -0.8
Equipment Rental 3.9 4.3 4.3 4.0 4.0 0.0 -0.3
Total General Government 70.3 75.7 76.4 77.3 75.1 -2.3 -1.3
Public Works &
Utilities (excl UB)
Public Works Administration 2.1 3 .2 3.3 4.2 4.2 0.0 0.8
Public Works Engineering 8.3 5.9 7.8 6.7 5.4 -1.3 -2.3
Utillities
Water Distribution 5.0 5.0 5.8 5.5 5.5 0.0 -0.3
Water Quality & Resource 3.0 3.0 3.8 3.5 3.5 0.0 -0.3
Wastewater Collection 2.5 2.5 2.7 2.5 2.6 0.1 -0.1
Wastewater Treatment 3.5 3.5 3.5 3.8 3.6 -0.1 0.1
Biosolids 2.5 2.5 2.5 2.5 2.5 0.0 0.0
Stormwater 3.5 3.5 3.6 3.3 3.5 0.2 0.0
Total Public Works & Utilities 30.4 29.1 33.0 31.9 30.8 -1.1 -2.2
TOTAL CITY FTES 100.7 104.9 109.3 109.2 105.9 -3.3 -3.5
-3.1% -3.3%
2016 2017 2018 2019 2020
Mayor/Council 7.0 7.0 7.0 7.0 7.0
* Does not include leave payouts or seasonal positions
Positions not currently counted
as FTES
Percentage Change
2020 Budget Section 7 - Page 4 of 8
With the seasonal help, a total of 107.23 positions are included in the proposed budget
for 2020, not including volunteer hours, overtime, or accrued leave payouts. Volunteer
hours amount to approximately 3.36 FTEs and assist with police operations, library
operations, and parks maintenance. City wide overtime hours are also budgeted at
4,552 hours with most of those hours dedicated to police operations.
Below are two tables that outline salary schedules and positions budgeted in 2020 for
Elected Officials, Non-represented Employees and Represented Employees positions:
Elected Officials
Classification Minimum M aximum Positions
Mayor 9,000.00$ 9,000.00$ 1.00
Councilmembers 6,000.00$ 6,000.00$ 6.00
Non Represented Employees
Classification Minimum Maximum Positions
City Manager 128,750$ 167,890$ 1.00
Public Works Director 118,691$ 145,251$ 1.00
City Attorney 116,398$ 139,678$ 1.00
Chief of Police 107,669$ 137,201$ 1.00
Finance and Administrative Services Director 104,758$ 133,859$ 1.00
Development Services Director 104,758$ 128,037$ 1.00
Deputy Police Chief 95,168$ 115,985$ 0.00
Deputy Public Works Director/City Engineer 95,168$ 115,985$ 1.00
Parks, Recreation & Community Services Director 95,168$ 115,985$ 1.00
Assistant City Engineer II 87,342$ 109,558$ 0.00
Assistant City Engineer I 84,389$ 105,853$ 0.00
Library Director 84,389$ 104,758$ 1.00
Human Resources Manager 81,700$ 113,162$ 1.00
Prosecuting Attorney/Assistant City Attorney 81,022$ 99,624$ 0.00
Planning Manager 81,022$ 99,624$ 1.00
Building Official 80,024$ 96,028$ 1.00
Public Works Operations Manager WW/Bio 80,024$ 96,028$ 1.00
Public Works Operations Manager - Water Resources 80,024$ 96,028$ 1.00
Public Works Operations Manager - Streets/Sewer/Stormwater 80,024$ 96,028$ 1.00
City Clerk 77,346$ 100,467$ 1.00
Operations Manager - Parks, Recreation & Facilities 75,659$ 104,758$ 0.00
Finance Manager 77,979$ 108,585$ 1.00
Civil Engineer III 73,897$ 101,916$ 1.00
Senior Planner 72,913$ 93,200$ 1.00
Library Manager - Public and Technical Services 63,897$ 75,220$ 1.00
Library Manager - Youth Services 63,897$ 75,220$ 1.00
Civil Engineer EIT 59,714$ 77,184$ 1.00
Deputy City Clerk 57,085$ 75,562$ 1.00
Executive Assistant to City Manager 57,085$ 75,562$ 1.00
Human Resources Specialist 57,085$ 75,562$ 1.00
Legal Assistant/Deputy Clerk 57,085$ 75,562$ 1.00
Legal Assistant 57,085$ 75,562$ 0.63
Payroll and Benefits Administrator 57,085$ 75,562$ 1.00
Executive Assistant to Chief of Police 53,913$ 71,405$ 1.00
Hourly Part-Time Positions
Library Associate 20.19$ 23.80$ 2.01
Library Assistant 15.22$ 17.95$ 2.13
Library Assistant Substitute -$ 15.22$ 0.54
Library Courier, Library Page 13.50$ 16.32$ 1.19
Aquatics Recreation Aide -$ 13.50$ 0.00
Lifeguard, Swim Instructor 13.90$ 15.47$ 3.16
Fitness Instructor 15.39$ 17.22$ 0.74
TEMPORARY PART TIME Hourly Pool Positions -$ -$
Assistant Swim Team Coach 15.39$ 23.25$ 0.12
Head Swim Team Coach 16.85$ 25.82$ 0.01
Total Non-Represented Employees 38.53
CITY OF PORT TOWNSEND
NON-BARGAINING EMPLOYEE POSITION CLASSIFICATION SALARY SCHEDULE
BUDGET 2020
2020 Budget Section 7 - Page 5 of 8
GENERAL GOVERNMENT REPRESENTED EMPLOYEES
Classification Minimum/hr Maximum/hr **Positions
Accountant 33.62$ 38.15$ 1.00
Administrative Assistant - Public Works 21.98$ 24.97$ 1.00
Aquatics Program Coordinator 22.73$ 25.99$ 1.00
Aquatics Program Supervisor 28.27$ 32.12$ 1.00
Assistant Planner 29.12$ 33.07$ 0.00
Associate Planner 32.45$ 39.25$ 0.00
Building Inspector 30.50$ 34.65$ 1.00
Code Compliance Officer 30.50$ 34.65$ 1.00
Community Services Officer 22.73$ 25.99$ 1.00
Crew Chief 31.83$ 36.15$ 2.00
Equipment Operator 27.65$ 31.28$ 11.13
Finance Specialist 29.12$ 33.07$ 1.00
Finance Tech II 22.73$ 25.99$ 2.00
Finance Tech III 24.93$ 28.30$ 1.00
GIS Coordinator 31.24$ 35.52$ 1.00
Head Lifeguard I 15.39$ 17.22$ 1.00
Head Lifeguard II 16.69$ 18.70$ 1.00
IT Network Administrator 38.99$ 44.26$ 1.00
IT Technical Support 31.24$ 35.52$ 1.00
Land Use Specialist 29.12$ 33.07$ 1.00
Lead Equipment Operator 29.61$ 33.63$ 4.00
Lead Operator 29.61$ 33.63$ 3.00
Maintenance Worker 22.73$ 25.99$ 8.00
Mechanic 28.27$ 32.09$ 0.00
Parks/Rec Community Services Admin Support Specialist 23.15$ 26.21$ 1.00
Permit Tech 22.73$ 25.99$ 2.00
Police Clerk 24.93$ 28.30$ 2.00
Project Accounting Specialist 29.12$ 33.07$ 1.00
Public Works Inspector 30.50$ 34.65$ 1.00
Public Works/Engineering Support Specialist III 24.93$ 28.30$ 0.00
Public Works/Engineering Support Specialist II 22.73$ 25.99$ 0.00
Purchasing/Contracts Specialist 29.12$ 33.07$ 0.00
Public Works Administrative Assistant 19.90$ 0.40
Seasonal Workers $ 16.00 1.38
Total General Government Represented Employees 53.91
POLICE OFFICER REPRESENTED EMPLOYEES
Classification Minimum/hr Maximum/hr **Positions
Police Officer 32.38$ 37.15$ 11.00
Sergeant 41.62$ 45.52$ 3.00
Hourly Part-Time Non-Represented Positions
Reserve Police Officers 18.00$ 0.79
Total Police (Sworn Officer) Employees 14.79
TOTAL CITY POSITIONS (Excluding Elected Officials)107.23
**max pay does not include longevity or other premiums as may be applicable
CITY OF PORT TOWNSEND
REPRESENTED EMPLOYEE POSITION CLASSIFICATION SALARY SCHEDULE
BUDGET 2020
2020 Budget Section 7 - Page 6 of 8
City ManagerCity Manager
MayorMayor Deputy MayorDeputy Mayor Council MemberCouncil Member Council MemberCouncil Member Council MemberCouncil Member Council MemberCouncil Member Council MemberCouncil Member
DevelopmentServicesDirector
Public WorksDirector
Finance &AdministrativeServices Director
City Clerk
Parks, Recreation & Community ServicesDirector Library Director
City Attorney
Citizens of Port Townsend
CivilEngineer (EIT)
GISCoordinator
AdministrativeAssistant
Assistant City Engineer II
CivilEngineer III
ProjectAccountingSpecialist
PW Operations Manager
Street/Stormwater/Sewer
PW Operations ManagerWater Resources
PW Operations Manager
Wastewater Treatment/Biosolids
Crew ChiefCrew Chief
City Engineer/DeputyPublic Works Director
Lead OperatorFacilities
Lead OperatorParks
Maintenance WorkerParks
Parks, Recreation & Community ServicesAdministrativeSupport Specialist
Aquatics ProgramSupervisor
Head
Lifeguard
Head
Lifeguard
Lifeguards
(Part Time)
Fitness/SwimInstructors(Part Time)
AquaticsProgramCoordinator LibraryAssistantSubstitutes
LibraryVolunteers
LibraryAssociate LibraryAssistant
Library Page
Library Page Courier
Library ManagerPublic & Technical Services
Library ManagerYouth Services
HumanResources Specialist
Payroll/BenefitsAdministrator
FinanceSpecialist
Accountant
FinanceTech III
Finance Manager
IT NetworkAdministrator
Human Resources Manager
AdministrativeAssistant
Public WorksInspector
PoliceDetective
ExecutiveAssistant
CommunityServicesOfficer
ExecutiveAssistant
DeputyCity Clerk
LegalAssistant
Legal Assistant
PoliceClerk
Citizen VolunteersPolice Department
Reserve OfficerVolunteers
Police Officers (9)
Reserve Officers (2)
Sergeant
Sergeant
Sergeant
LibraryAssociate
LibraryAssociate
LibraryAssociate
IT TechnicalSupport
Chief of Police
MaintenanceWorker
EquipmentOperator
Chan Hettle
Lawerence Grewell
Lead EquipmentOperator
EquipmentOperator
Lead EquipmentOperator
REV 10/2019
Planning Manager
Building Official
SeniorPlanner
PermitTechnician
PermitTechnician
Land UseSpecialist
BuildingInspector
CodeComplianceOfficer
PoliceDetective
PoliceClerk
LibraryAssistant
EquipmentOperator
EquipmentOperator
Lead EquipmentOperator
EquipmentOperator
Lead EquipmentOperator
EquipmentOperator
EquipmentOperator
Lead EquipmentOperator
EquipmentOperator
EquipmentOperator
MaintenanceWorker
MaintenanceWorker
MaintenanceWorker
Street/Stormwater/Sewer
Composting/Biosolids
Wastewater TreatmentWater Resources
Water Distribution
Water Division
Fleet
EquipmentOperator
EquipmentOperator
Maintenance WorkerParks
Maintenance WorkerFacilities
Maintenance WorkerFacilities
FinanceTech II
FinanceTech II
2020 Budget Section 7 - Page 7 of 8
2020 Budget Section 7 - Page 8 of 8
CITY OF PORT TOWNSEND, WASHINGTON
PROPERTY TAX
Property valuations are established by the Jefferson County Assessor’s Office in
accordance with state law. State law restricts the amount of property taxes the City
can levy. Typically, the maximum the City can levy, without the vote of the people, is
101% of the highest lawful levy amount plus the impact of new construction at the
previous year’s levy rate plus the impact of new construction at the previous year’s levy
rate.
In early October, the Jefferson County Assessor provides the City’s assessed value
(AV) for use in computing the levy rates for the following tax year. The City’s 2019 AV
grew by 13.1% from the 2018 AV. New construction in the City was $19,886,000 for
2019 which adds to the City’s tax base. During 2019, the Assessor’s office conducted
a complete review of assessed values in the City, leading to the 13.1% increase in total
City wide AV.
In February 2019, the voters of the City of Port Townsend voted on a measure to annex
the City of Port Townsend into Jefferson County Fire Protection District #1 (EJFR).
The measure was approved by 69.28% of the voters, resulting in a merge of the
geographic area of Port Townsend into the service area of District #1. With this
approval, the City no longer levies property taxes for the Fire Levy Lid Lift or Emergency
Management Services, as these services will now be provided by EJFR. EJFR will
now levy taxes for these services. The City’s General Fund Levy had previously
supplied additional funding to EJFR, with the funding amount for 2019 estimated at
$908,724. The City retains the authority to levy the $908,724.
While Washington state does not allow the property tax levy to be reduced through a
vote once it has been established, the City Council may adjust the amount to be levied.
The City put together a means to limit its property tax levy authority for a period of five
years.
The Council has adopted an enforceable policy that limits the Council’s tax authority in
December 2018. The policy is accessible on the City’s website at:
https://cityofpt.us/administration/page/post-annexation-property-tax-policy-qa . This policy
provides that the City will not assess any of the $908,724 increase in 2020 (the first year
it would go into effect if annexation is approved). Thereafter starting in 2021 through
2023 the Council will have limited authority as provided for by the policy. The policy
requires that any amount of the $908,724 be phased in at a rate not to exceed 33% per
each year starting in 2021. Further, it restricts what the money can be used for as
outlined in the adopted policy.
For 2020, the policy dictates that the full amount of the $908,724 will not be levied.
Not levying this amount will create “banked capacity” of $908,724. This banked
2020 Budget Section 8 (Updated 11/18/19) - Page 1 of 12
capacity will be available for the City to use in the future but not during the 2020-2023
period covered in the policy agreement.
The total proposed property tax levy for the City General 2019 property tax levy for 2020
taxes is $2,614,000, or approximately $1.39800 per $1,000 AV. This levy includes the
Library lid lift which provides funds to pay for operating expenses for the Carnegie
Library and Pink House. Previously the General Fund levy also included the Fire/EMS
lid lift levy which provided funds for fire and emergency rescue services and the receipts
from this levy were remitted to Jefferson County Fire District No. 1 (East Jefferson Fire
Rescue). As of January 1, 2020, this levy has been eliminated.
In 2010, Port Townsend voters approved an additional emergency medical service
(EMS) levy for $0.50 per $1,000 of AV. These taxes were remitted to East Jefferson
Fire Rescue as part of an Interlocal agreement. The total proposed tax levy for EMS
levy lid lift for 2018 was $774,000. As of January 1, 2020, this levy has now been
eliminated.
In February 2015, the voters of the City of Port Townsend approved a ballot measure to
authorize the City to issue up to $3,600,000 in bonds for the Mountain View Commons
energy retrofit and other building improvements. The bond will be partially paid with
an additional property tax levy for a period not to exceed 15 years. The annual debt
payments are approximately $300,000 a year. The City Council intends to use special
purpose sales tax revenue to fund 50% of the payment and to levy an additional amount
equivalent to the remainder of the bond payment. The levy for the Mountain View
Commons bond is $150,000 for 2020. This excess levy amount is approximately
$0.08173 per $1,000 of assessed values.
The City of Port Townsend records property tax amounts when collected (cash basis
accounting recognition system). The following chart reflects the proposed property tax
levies and budget allocations by fund. The total amount is slightly higher than the
proposed levy amounts listed above to allow for 2020 new construction additions or
refunds/changes that may be identified and valued by the County Assessor before the
end of the year.
2020 Budget Section 8 (Updated 11/18/19) - Page 2 of 12
Assessed Valuation (000's)1,468,539 1,469,136 1,219,761 1,299,381 1,340,801 1,442,618 1,524,264 1,653,040 1,869,815
Levy Rate - General 1.40521 1.42529 1.73897 1.66940 1.63449 1.56531 1.52015 1.42554 0.79687
Levy Rate - Library Lid Lift 0.65371 0.66400 0.80908 0.77421 0.76037 0.72350 0.70654 0.66291 0.60113
Levy Rate - Fire Lid Lift 0.43117 0.43708 0.53429 0.51206 0.50217 0.48254 0.46682 0.43799 -
City of PT Total General Levy 2.49009 2.52637 3.08234 2.95567 2.89703 2.77135 2.69351 2.52644 1.39800
Levy Rate - EMS 0.50000 0.50000 0.50000 0.50000 0.50000 0.50000 0.49598 0.46823 -
Excess Levy Rate - Mountain View - - - - 0.05093 0.10595 0.10595 0.09261 0.08173
Total City Tax Levy Rate 2.99009 3.02637 3.58234 3.45567 3.44796 3.37730 3.29544 3.08728 1.47973
2012 2013 2014 2015 2016 2017 2018 2019 2020
General 675,681 682,899 740,000 750,000 770,329 811,808 850,146 884,670 867,107
Contingency 21,000 39,689 4,000 4,000 - - - - -
Community Services 400,000 399,242 408,000 412,000 412,000 412,000 412,000 412,000 412,000
General Covernment Debt Service 101,000 99,823 102,000 102,000 102,000 102,000 102,000 102,000 102,000
Firemen's Pension 34,000 34,000 35,000 35,000 39,245 35,245 34,235 34,235 34,235
Housing Trust Fund 10,000 6,235 10,000 10,000 10,000 10,000 10,000 10,000 74,658
Library Fund 960,000 967,644 989,000 1,006,000 1,019,185 1,043,224 1,076,951 1,095,824 1,124,000
EMS Levy 740,000 673,319 610,000 655,000 675,000 742,000 765,000 774,000 -
Fire/EMS General Levy 1,463,319 1,474,972 1,511,598 1,542,721 1,559,047 1,583,723 1,620,276 1,637,574 -
Mountain View Levy - - - - 67,012 150,000 150,000 150,000 150,000
Total 4,405,000 4,377,823 4,409,598 4,516,721 4,653,818 4,890,000 5,020,608 5,100,303 2,764,000
Note: Budget Allocations may be intentionally slightly higher than the Property Tax Levy amounts in the Ordinance. The
County Assessor provides guidance on budgeting higher than the levy to account for new construction/refunds and other valuation adjustments.
2019 for
2020 taxes
CITY OF PORT TOWNSEND PROPERTY TAX LEVY
ASSESSED VALUE & LEVY RATES - BY TAX YEAR
BUDGET ALLOCATIONS
2018 for
2019 taxes
2011 for
2012 taxes
2012 for
2013 taxes
2013 for
2014 taxes
2014 for
2015 taxes
2015 for
2016 taxes
2016 for
2017 taxes
2017 for
2018 taxes
2020 Budget Section 8 (Updated 11/18/19) - Page 3 of 12
2020 Budget Section 8 (Updated 11/18/19) - Page 4 of 12
Ordinance 3238
Page 1 of 2
ORDINANCE NO. 3238
AN ORDINANCE OF THE CITY OF PORT TOWNSEND, WASHINGTON, FIXING
AND ADOPTING 2020 PROPERTY TAX LEVIES FOR THE GENERAL LEVY WITH
A TOTAL INCREASE OF ONE PERCENT (1.00%) AND A VOTER-APPROVED TAX
LEVY FOR THE MOUNTAIN VIEW COMMONS CAPITAL IMPROVEMENTS OF
$150,000 FOR THE UNLIMITED TAX GENERAL OBLIGATION BONDS
WHEREAS, as provided by and pursuant to RCW 84.55.120 and other applicable
statutes, the City of Port Townsend has properly given notice of the public hearing held on
November 4, 2019, to consider the City of Port Townsend’s General Fund, Contingency Fund,
Library Fund, Affordable Housing Fund, Community Services Fund, Debt Service Fund and
Firemen Pension Fund budget for the 2020 calendar year, pursuant to RCW 84.55.120; and
WHEREAS, RCW 84.52.070 requires the City to certify to the County the amount of
taxes to be levied upon the property within the City b y November 30th of each year; and,
WHEREAS, at the February 10, 2015 special election, the citizens of Port Townsend
approved an additional property tax of $0.1005 per $1,000 of assessed property value for
improvements to the Mountain View Commons facility and to repay any interim financing used
for those improvements; and,
WHEREAS, at the February12, 2015 special election, the citizens of Port Townsend and
the East Jefferson Fire Protection District No. 1 approved the annexation of the City of Port
Townsend into the East Jefferson Fire Protection District No. 1; and
WHEREAS, per fire annexation agreement, the City Council agreed to reduce its
property tax levy by $908,724, which represents the approximate amount the City’s general fund
would have paid for fire protection services by the East Jefferson Fire Protection District and is
considered “banked capacity” for the City of Port Townsend; and
WHEREAS, as a result of the fire annexation, responsibility for levying the EMS levy
and the Fire/EMS levy lid lift transfers to East Jefferson Fire Protection District No. 1; and
WHEREAS, the City of Port Townsend, after hearing, and after duly considering all
relevant evidence and testimony presented, has determined that the City of Port Townsend
requires an increase in real property tax revenue from the previous year, in addition to the
increase in the value of state-assessed property, in order to discharge the expected expenses and
obligations of the City of Port Townsend and in its best interest;
NOW THEREFORE, the City Council of the City of Port Townsend do ordain as
follows:
Section 1. That an increase in the regular property tax levy of 1.0%, in addition to any
amount resulting from the addition of new construction and improvements to property and any
increase in the value of state-assessed property, and any increase due to re-levying for any
refunds made in the previous year, is hereby authorized for the 2020 levy in amounts as follows:
2020 Budget Section 8 (Updated 11/18/19) - Page 5 of 12
Ordinance 3238
Page 2 of 2
1.1. There is hereby levied upon all taxable property in the City of Port Townsend, for the
year of 2020, the sum of $3,471,411 as a general tax levy, which is a percentage increase
of 1.0%, in addition to any amount resulting from the addition of new construction and
improvements to property and any increase in the value of state-assessed property, and
any increase due to re-levying for any refunds and cancellations/supplementals made in
the previous year, resulting in an increase of $34,370 from the previous year.
1.2. In addition to the above, there is hereby levied upon all taxable property in the City
of Port Townsend, for the year of 2020, the sum of $150,000 for the 2015 Unlimited Tax
General Obligation Bonds approved by voters in February 2015 for capital improvements
at the Mountain View Commons, which is a tax levy at approximately $0.081733 per
$1,000 assessed value.
Section 2. If any provision of this Ordinance or its application to any person or
circumstance is held invalid, the remainder of the ordinance, or the application of the provision
to other persons or circumstances, is not affected.
Section 3. This Ordinance shall take effect upon its passage, approval, and publication in
the form and manner provided by law.
ADOPTED by the City Council of the City of Port Townsend, Washington, at a regular
meeting thereof, held this 18th day of November 2019.
___________________________________
Deborah S. Stinson
Mayor
Attest: Approved as to form:
___________________________________ ___________________________________
Joanna Sanders, MMC Heidi Greenwood
City Clerk City Attorney
2020 Budget Section 8 (Updated 11/18/19) - Page 6 of 12
City of Port Townsend Property Tax Calculation - 2020
CITY OF PORT TOWNSEND - PROPERTY
TAX ESTIMATE FOR 2020 BUDGET GENERAL LEVY LIBRARY LEVY MTN VIEW LEVY TOTAL
2018 for 2019 Assessed Value 1,653,051,001$ 1,653,051,001$ 1,619,766,431$
2018 New Construction 21,668,678$ 21,668,678$ 21,668,678$
2019 Levy Rate 1.418640 0.659890 0.092610 2.171140
2019 Acutal Levy Amount 2,345,852$ 1,091,188$ 149,999$ 3,587,039$
Increase of 1%23,459$ 10,912$ -$ 34,370$
Banked Capacity -$ -$ -$ -$
2020 New Construction Estimate 25,000$ 10,000$ 35,000$
2020 Refunds estimate 2,854$ 975$ 3,829$
Total Calculated Levy Estimate 2,397,164$ 1,113,075$ 150,000$ 3,660,238$
Less: EJFR Interlocal Agreement/Banked
Capacity (908,724)$ -$ -$ (908,724)$
Adjusted Calcuated Levy Estimate 1,488,440$ 1,113,075$ 150,000$ 2,751,514$
2019 for 2020 Assessed Value (13.1%)1,869,815,188$ 1,869,815,188$ 1,835,238,451$
2020 Levy Rate 0.796036 0.595286 0.081733 1.473056
Budget amount 1,490,000$ 1,124,000$ 150,000$ 2,764,000$
ALLOCATION
GENERAL FUND 867,107$ 250,048,757$
CONTINGENCY FUND -
COMMUNITY SERVICES 412,000
GO DEBT SERVICE 102,000
FIREMEN'S PENSION 34,235
HOUSING TRUST FUND 74,658
LIBRARY FUND 1,124,000
TOTAL 2,614,000
MTN VIEW LEVY 150,000$
TOTAL CITY LEVY BUDGET 2,764,000$
2020 Budget Section 8 (Updated 11/18/19) - Page 7 of 12
2020 Budget Section 8 (Updated 11/18/19) - Page 8 of 12
City of Port Townsend Property Tax Calculation - 2019
Property Tax Estimate for 2019 Budget
General w/Library
Lid Lift & Fire Lid Lift
General with Library
Lid Lift Only
General without Library
& Fire Lid Lifts EMS Levy Mountain View (MV)
TOTAL
GENERAL +
EMS + MV
2017 for 2018 - AV 1,528,558,379 1,528,558,379 1,528,558,379 1,528,558,379 1,497,191,373
2017 New Construction 21,668,678 21,668,678 21,668,678 21,668,678
2018 Levy Rate 2.6557 2.1953 1.4982 0.4928 0.1002
2018 Actual Levy Amount (Per Ordinance)4,059,328 3,355,648 2,290,158 753,266 150,000 4,962,594
Increase of 1% (Ordinance amount)40,593 33,556 22,902 7,532.66 - 48,126
Banked Capacity - - - - - -
2019 New Const (Est) - $19,375,000 51,700 42,741 29,174 9,589 - 61,289
Refunds (Est) - $5,449 4,681 3,947 2,835 767 - 5,449
Total Calculated Levy Estimate 4,156,303 3,435,892 2,345,068 771,155 150,000 5,077,458
2018 for 2019 AV 1,653,040,117 1,653,040,117 1,653,040,117 1,653,040,117 1,619,766,431
Levy Rate 2.51434 2.07853 1.41864 0.46651 0.09261
Budget on the high side 4,176,303 3,452,292 2,356,468 774,000 150,000 5,100,303
Property Tax Budget General Library FIRE EMS MV Total
Budget on the high side 2,356,468 1,095,824 724,011 774,000 150,000 3,280,468
2019 Budget Levy Rate 1.42554 0.66291 0.43799 0.46823 0.09261 3.08727
ALLOCATION
General 884,670 Payment to EJFR:
Contingency - FIRE 724,011
Community Services 412,000 EMS 774,000
General Covernment Debt Service 102,000 1% increase per contract 913,563
Firemen's Pension 34,235 EJFR 2,411,574
Housing Trust Fund 10,000
Library Fund 1,095,824
EMS Levy 774,000 2018 Base 878,924
Fire/EMS General Levy 1,637,574 1% Increase 8,789
Total 4,950,303 2019 Base 887,713
1/2 New Construction 25,850
MV LEVY 150,000 2019 Cap to EJFR 913,563
TOTAL CITY LEVY - BUDGET 5,100,303
2020 Budget Section 8 (Updated 11/18/19) - Page 9 of 12
2020 Budget Section 8 (Updated 11/18/19) - Page 10 of 12
Assessed Valuation (000's)1,468,539 1,469,136 1,219,761 1,299,381 1,340,801 1,442,618 1,524,264 1,653,040 1,869,815
Levy Rate - General 1.40521 1.42529 1.73897 1.66940 1.63449 1.56531 1.52015 1.42554 0.79687
Levy Rate - Library Lid Lift 0.65371 0.66400 0.80908 0.77421 0.76037 0.72350 0.70654 0.66291 0.60113
Levy Rate - Fire Lid Lift 0.43117 0.43708 0.53429 0.51206 0.50217 0.48254 0.46682 0.43799 -
City of PT Total General Levy 2.49009 2.52637 3.08234 2.95567 2.89703 2.77135 2.69351 2.52644 1.39800
Levy Rate - EMS 0.50000 0.50000 0.50000 0.50000 0.50000 0.50000 0.49598 0.46823 -
Excess Levy Rate - Mountain View - - - - 0.05093 0.10595 0.10595 0.09261 0.08173
Total City Tax Levy Rate 2.99009 3.02637 3.58234 3.45567 3.44796 3.37730 3.29544 3.08728 1.47973
2012 2013 2014 2015 2016 2017 2018 2019 2020
General 675,681 682,899 740,000 750,000 770,329 811,808 850,146 884,670 867,107
Contingency 21,000 39,689 4,000 4,000 - - - - -
Community Services 400,000 399,242 408,000 412,000 412,000 412,000 412,000 412,000 412,000
General Covernment Debt Service 101,000 99,823 102,000 102,000 102,000 102,000 102,000 102,000 102,000
Firemen's Pension 34,000 34,000 35,000 35,000 39,245 35,245 34,235 34,235 34,235
Housing Trust Fund 10,000 6,235 10,000 10,000 10,000 10,000 10,000 10,000 74,658
Library Fund 960,000 967,644 989,000 1,006,000 1,019,185 1,043,224 1,076,951 1,095,824 1,124,000
EMS Levy 740,000 673,319 610,000 655,000 675,000 742,000 765,000 774,000 -
Fire/EMS General Levy 1,463,319 1,474,972 1,511,598 1,542,721 1,559,047 1,583,723 1,620,276 1,637,574 -
Mountain View Levy - - - - 67,012 150,000 150,000 150,000 150,000
Total 4,405,000 4,377,823 4,409,598 4,516,721 4,653,818 4,890,000 5,020,608 5,100,303 2,764,000
Note: Budget Allocations may be intentionally slightly higher than the Property Tax Levy amounts in the Ordinance. The
County Assessor provides guidance on budgeting higher than the levy to account for new construction/refunds and other valuation adjustments.
2019 for
2020 taxes
CITY OF PORT TOWNSEND PROPERTY TAX LEVY
ASSESSED VALUE & LEVY RATES - BY TAX YEAR
BUDGET ALLOCATIONS
2018 for
2019 taxes
2011 for
2012 taxes
2012 for
2013 taxes
2013 for
2014 taxes
2014 for
2015 taxes
2015 for
2016 taxes
2016 for
2017 taxes
2017 for
2018 taxes
2020 Budget Section 8 (Updated 11/18/19) - Page 11 of 12
2020 Budget Section 8 (Updated 11/18/19) - Page 12 of 12
City Council 2019
Fax Number for all Council members is the Admin fax line: 360-385-4290
Name Public Phone Email Term Expires
Michelle Sandoval 360-379-2980 msandoval@cityofpt.us 12/31/21 Pos. 1
Ariel Speser 360-379-2980 aspeser@cityofpt.us 12/31/21 Pos. 2
Deborah Stinson 360-379-2980 dstinson@cityofpt.us 12/31/19 Pos. 3
Robert Gray 360-379-2980 rgray@cityofpt.us 12/31/19 Pos. 4
Pamela Adams 360-379-2980 padams@cityofpt.us 12/31/21 Pos. 5
Amy Howard 360-379-2980 ahoward@cityofpt.us 12/31/19 Pos. 6
David Faber 360-379-2980 dfaber@cityofpt.us 12/31/19 Pos. 7
2020 Budget Section 9 - Page 1 of 6
2020 Budget Section 9 - Page 2 of 6
COUNCIL COMMITTEE ASSIGNMENTS
Updated September 26, 2019
COUNCIL STANDING COMMITTEES
Finance and Budget (4th Tues. 3pm CH #3/Chambers) -------------------------- RG, AH (chair), DS
Rules Committee (2nd Tues. 1:30pm Chambers) ------------------------------------- AH, AS (chair), DS
Housing Committee (3rd Thurs. 3pm Chambers) -------------------------------------MS (chair), AH, DF
Transportation Committee (3rd Wed. at 3 pm Chambers) ------------------------- DF (chair), RG, PA
CITY BODIES WITH COUNCIL REPRESENTATIVES
Alternative Electric Management Committee -------------------------------------------------- Unassigned
Lodging Tax Advisory Committee (LTAC) ----------------------------------------------------------------- MS
PEG Access Coordinating Committee ---------------------------------------------------------------------- RG
OUTSIDE BODIES WITH COUNCIL REPRESENTATIVES
Economic Development
North Olympic Development Council (NODC) ------------------------------------------------- DS (AS alt.)
Health
Jefferson County Board of Health ---------------------------------------------------------------- AS (PA alt.)
Jefferson County Developmental Disabilities Advisory Board ----------------------------------------- PA
Jefferson County Clean Water District Advisory Council ----------------------------------------------- DS
Jefferson County Mental Health and Substance Abuse Advisory Committee ---------------------- AS
Infrastructure
Public Infrastructure Board ------------------------------------------------------------------------------------ DS
Law and Justice
Jefferson County/Port Townsend Regional Emergency Planning Committee -------------------- DS
Transportation
Jefferson Transit Authority Board ----------------------------------------------------------------------- AS, DF
Peninsula Regional Transportation Planning Organization Executive Board------------ AS (DF Alt)
Other
Climate Action Committee ------------------------------------------------------------------------------------- DS
Fort Worden Advisory Committee ---------------------------------------------------------------------------- PA
Jefferson County/City of Port Townsend LEOFF I Retirement/Disability Board ------------------- DF
Jefferson Higher Education Committee -------------------------------------------------------------------- MS
East Jefferson Fire Rescue Joint Oversight Board ------------------------------------------- AH, MS, DS
OlyCAP Board of Directors ------------------------------------------------------------------------------------ AH
Joint Growth Management Steering Committee----------------------------------------------- MS, DF, DS
JeffCom Administrative Board -------------------------------------------------------------------------------- DS
Port Townsend Main Street HUD Loan Committee ------------------------------------------------------- PA
2020 Budget Section 9 - Page 3 of 6
2020 Budget Section 9 - Page 4 of 6
Pos.Name & Experience Exp.Pos.Name Exp.
1 Paul Schutt 5/1/22 1 Don Schussler 5/1/20
2 Jim Todd 5/1/20 2 Cate Comerford 5/1/20
3 VACANT 3 George Randels 5/1/20
4 John Nowak 5/1/22 4 Charles Paul 5/1/21
5 Daniel Greholver, Vice Chair 5/1/22 5 Richard Berg, Chair 5/1/21
6 Brenda McMillan 5/1/21 6 Craig Britton, Vice Chair 5/1/22
7 Deborah Jahnke, Chair 5/1/21 7 Kathleen Croston 5/1/22
Pos.Name & Role Exp.Pos.Name Exp.
1 Michelle Sandoval, Chair (Elected Official)N/A 1 Stan Rubin 5/1/20
2 Sherri Hanke (At Large Position)5/1/20 2 Becky Busi 5/1/20
3 Amanda Milholland (At Large Position)5/1/22 3 Kris Morris 5/1/20
4 Karen Clemens (Recipient)5/1/22 4 VACANT
5 Barb Trailer (Recipient)5/1/21 5 Dominica Lord-Wood 5/1/22
6 Janette Force (Recipient)5/1/22 6 Shelly Leavens 5/1/22
7 Denise Winter (Recipient)5/1/22 7 Maryann Tapiro 5/1/21
8 Cindy Finnie (Collector)5/1/22 8 Dan Groussman 5/1/22
9 VACANT (Collector)9 Nhattaleah Nichols, Vice Chair 5/1/21
10 Fort Worden PDA Designee (Collector)5/1/20
11 Nathan Barnett (Collector)5/1/21
12 Main Street Designee (Nonvoting)5/1/21
13 Arlene Alen (Nonvoting)5/1/20
14 William Roney (Nonvoting)5/1/20 Pos.Name Exp.
1 Ann Raymond, Chair 5/1/22
2 VACANT
3 Jacqueline Mention 5/1/21
4 Kathyrn Ryan 5/1/20
Pos.Name Exp.5 Sidonie Wilson 5/1/20
1 VACANT 6 Owen Rowe 5/1/20
2 Mike Kaill 5/1/20 7 Carol Klontz 5/1/21
3 VACANT
4 Hendrik Taatgen 5/1/21
5 Sam Feinson, Chair 5/1/21
6 VACANT
7 Pat Teal 5/1/22
8 VACANT
9 VACANT
Council Liaison: Robert Gray
Council Liaison: NoneCouncil Liaison: David Faber
Council Liaison: Michelle Sandoval
HISTORIC PRESERVATION COMMITTEE (5-7)
Meets 3:00pm 1st Tuesday at City Hall
ARTS COMMISSION (9 max.)
Meets 3:00pm 1st Wednesday at City Hall
LIBRARY ADVISORY BOARD (5-7)
LODGING TAX ADVISORY COMMITTEE (11 voting)
Meets 3:00pm quarterly 2nd Tuesday at City Hall
PARKS, RECREATION & TREE ADVISORY BOARD (5-7)
Meets 4:30pm 4th Tuesday at City Hall
Council Liaison: None
Meets Bi-monthly 3:30pm 2nd Monday at the LLC
ACTIVE TRANSPORTATION ADVISORY BOARD (9)
Meets 4:30pm 1st Thursday at City Hall
Council Liaison: Amy Howard
2020 Budget Section 9 - Page 5 of 6
Pos.Name Exp.
1 Paul Rice, Chair 12/31/21
2 Monica MickHager 12/31/20
3 Rick Jahnke, Vice Chair 12/31/21
4 James Lagergren 12/31/20
5 Lois Stanford 12/31/19
6 Robert Doyle 12/31/19
7 Aislinn Palmer 12/31/19
Pos.Name Exp.
1 Gail Ryan, Vice Chair 12/31/19
2 Sherry Erickson 12/31/21
3 Richard Knight, Chair 12/31/23
Pos.Name Exp.
1 Jefferson County BoCC ( Kate Dean)N/A
2 City Council (Deborah Stinson)N/A
3 JeffPUD (Jeff Randall - Vice Chair )N/A Pos.Name Exp.
4 Jefferson County Public Health (Laura Tucker)N/A 1 Naushard Cader 10/24/22
5 Jefferson Healthcare (Chris O'Higgins)N/A 2 Jeff Jackson 10/24/22
6 Jeff. Transit (John Bender)N/A 3 Norm Tonina, Chair 10/24/22
7 Port of PT ( Eric Toews/Jim Pivarnik)N/A 4 VACANT
8 PT Paper Corp. (Darren Wilson)N/A 5 Gee Heckscher, Vice Chair 10/24/20
9 Cindy Jayne -Chair 12/31/20 6 Jane Kilburn 10/24/20
10 Shelley Jaye 12/31/21 7 Lela Hilton 10/24/20
11 David Wilkinson (atmospheric/agriculture/environ.
mgmt.)
12/31/19 8 Cindy Hill Finnie 10/24/21
12 Diane McDade 12/31/21 9 Todd Hutton 10/24/21
13 Cara Loriz 12/31/21 10 Herb Cook 10/24/21
14 Kate Chadwick (Policy)12/31/20 11 Terry Umbreit 10/24/21
15 Dave Seabrook 12/31/21
Updated: 10/06/2019
Meets at Fort Worden Commons B
FORT WORDEN PDA (9-11)
Name
Joanna Sanders, City Clerk
Melody Eisler, Library Director
Robert Gray, City Council (Chair)
John Polm, School District Superintendent
Richard Durr, School District Representative
________, School District Video Instructor
VACANT Education Group Representative (Optional)
CLIMATE ACTION COMMITTEE (15)
Meets quarterly on 4th Wednesday
VACANT, Student Representative CIVIL SERVICE COMMISSION (3)
Meets as needed
VACANT, Video Professional
PLANNING COMMISSION (7)
Meets 6:30pm 2nd & 4th Thursday at City Hall
_____________, Citizen Representative
VACANT Producers Group Representative (Optional)
PEG ACCESS COORDINATING COMMITTEE (8)
Meets 3:30pm 2nd Tuesday at the Gael Stuart Building
2020 Budget Section 9 - Page 6 of 6