HomeMy WebLinkAbout111822 Agenda Packet1
Port Townsend Financial
Sustainability Taskforce
Meeting 1 | Friday, November 18, 2022 | 1 – 3 pm| City Hall Council Chambers (Virtual or In Person)
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Objectives
Launch the Financial Sustainability Taskforce and review the group charge.
Provide an overview of the City’s budget.
Gather Taskforce input on community engagement options to start in 2023.
Pre-Reading
Briefing deck, including Budget 101 materials
Agenda
Time Item
1:00 – 1:20 pm Welcome, meeting overview, and introductions
1:20 – 1:35 pm Project overview and Taskforce group charge
1:35 – 2:20 pm Budget 101
2:20 – 2:50 pm Overview of community engagement options
2:50 – 3:00 pm Next steps and adjourn
Attendees
Taskforce Members
Catharine Robinson Rick Jahnke
Earll Murman Troy Surber
John Nowak
November 16, 2022 Port Townsend | Financial Sustainability Taskforce 2
Port Townsend Staff
John Mauro, City Manager
Connie Anderson, Director of Finance & Technology Services
Ron Logghe, Finance Manager
Steve King, Director of Public Works
Carrie Hite, Director of Parks & Recreation Strategy
BERK Consulting Staff
Katherine Goetz, Project Manager
Julia Tesch, Lead Facilitator and Analyst
Oliver Hirn, Financial Analyst
November 16, 2022
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Port Townsend Financial
Sustainability Taskforce
DRAFT Community Survey
Survey Objectives
Understand residents’ current level of satisfaction with services provided by Port Townsend.
Understand how residents balance level of service and cost for service.
Gather input to guide the selection of topics for the Budget 101 presentations in spring of 2023.
Survey Content
Introduction
As part of the Port Townsend’s Engage PT initiative, we invite you to join us in a conversation about the
City’s long-term fiscal sustainability in providing quality municipal services. This survey is the first part of
that conversation, as we aim to learn about your priorities for and level of satisfaction with City services.
In spring of 2023, we will host a series of educational workshops to provide information about City
budgeting and gather more information about your priorities. See the “context information” section below
for more information.
The anonymous survey should take approximately [length of time] to complete. The deadline for survey
completion is [time and date]. Please contact [person and email] with any questions. These bold items will
be updated.
Context information:
The City of Port Townsend strives for long-term financial sustainability to provide community members
with essential municipal services. The budget sets the level of spending for city funds, and each fund has
corresponding revenue sources with restrictions on spending from both state law and city policies. The
City’s annual budget process allows the public to weigh in on the City’s priorities through a series of
public hearings and meetings To inform future budgets, the City is interested in hearing from the
community about satisfaction with current services and priorities for investment.
November 16, 2022 Port Townsend | Financial Sustainability Taskforce 2
Service Priorities and Satisfaction
For each of the following services provided by the City of Townsend (each row), please rate how
highly you prioritize the service for your quality of life. (The specific services listed will be finalized.
Once we finalize the services, we will want to include some brief concrete examples of each to help
people understand what each includes.
Service High priority Somewhat high
priority
Somewhat low
priority
Low priority Don’t know
Service A [Checkbox] [Checkbox] [Checkbox] [Checkbox] [Checkbox]
Service B [Checkbox] [Checkbox] [Checkbox] [Checkbox] [Checkbox]
Service C [Checkbox] [Checkbox] [Checkbox] [Checkbox] [Checkbox]
Service D [Checkbox] [Checkbox] [Checkbox] [Checkbox] [Checkbox]
For each of the following services provided by the City of Port Townsend, please rate how well you
think the City delivers that service.
Service Very satisfied Somewhat satisfied Not too satisfied Not at all satisfied Don’t know
Service A [Checkbox] [Checkbox] [Checkbox] [Checkbox] [Checkbox]
Service B [Checkbox] [Checkbox] [Checkbox] [Checkbox] [Checkbox]
Service C [Checkbox] [Checkbox] [Checkbox] [Checkbox] [Checkbox]
Service D [Checkbox] [Checkbox] [Checkbox] [Checkbox] [Checkbox]
Funding for Services
The City of Port Townsend funds municipal services with taxpayer dollars and fees for services. For
each of the following services, how satisfied are you with the value you receive for the taxes and
fees you pay?
Service Very satisfied Somewhat
satisfied
Not too satisfied Not at all
satisfied
Don’t know
Service A [Checkbox] [Checkbox] [Checkbox] [Checkbox] [Checkbox]
Service B [Checkbox] [Checkbox] [Checkbox] [Checkbox] [Checkbox]
Service C [Checkbox] [Checkbox] [Checkbox] [Checkbox] [Checkbox]
Service D [Checkbox] [Checkbox] [Checkbox] [Checkbox] [Checkbox]
If the City of Port Townsend faces budget limitations in the future, which of the following statements is
closest to your opinion on how the City should respond?
a. The City should raise levels of taxes or fees and maintain or increase levels of City
services
November 16, 2022 Port Townsend | Financial Sustainability Taskforce 3
b. The City should maintain levels of taxes or fees and reduce levels of City services.
c. Don’t know
For each of the following services, please indicate if would you prefer to pay more in taxes and fees
to maintain or increase the level of service from the City of Port Townsend, or to see service levels
reduced from the City of Port Townsend to avoid paying more in taxes and fees.
Service Maintain or increase services by paying
more taxes or fees
Reduce service levels to avoid paying
more taxes or fees
Don’t know
Service A [Checkbox] [Checkbox] [Checkbox]
Service B [Checkbox] [Checkbox] [Checkbox]
Service C [Checkbox] [Checkbox] [Checkbox]
Service D [Checkbox] [Checkbox] [Checkbox]
In spring of 2023, the City of Port Townsend will host educational “Budget 101” workshops for the
public to provide information about the City’s budgeting processes. Which of the following topics
would you be most interested in learning about? Select up to three.
a. How City services are funded
b. How the City develops its budget
c. How the City spends its money
d. Specific revenue options
e. Economic impacts of the pandemic and recovery
Do you have any questions about how Port Townsend determines its annual budget? [Open-ended]
Demographics
The following questions help the City of Port Townsend understand who this survey has reached. (We
recommend not asking all these questions, but what will provide value to the City and help identify gaps for
future engagement.)
Question options include:
Age
Gender
Educational attainment
Household income
Ethnicity/race
Length of residence in Port Townsend
Housing tenure (rent/own)
CITY OF PORT TOWNSEND
FINANCIAL SUSTAINABILITY TASKFORCE
MEETING 1 | NOVEMBER 18, 2022
1
MEETING OVERVIEW
Objectives
1.Launch the Financial
Sustainability Taskforce and
review the group charge
2.Provide an overview of the
City’s budget
3.Gather Taskforce input on
community engagement
options to start in 2023
2
1:00 –1:20 pm Welcome, meeting overview, and introductions
1:20 –1:35 pm Project overview and Taskforce group charge
1:35 –2:20 pm Budget 101
2:20 –2:50 pm Overview of community engagement options
2:50 –3:00 pm Next steps and adjourn
Agenda
INTRODUCTIONS
Please share your name, any relevant affiliations,
and why you chose to join this taskforce.
Catharine Robinson
Earll Murman
John Nowak
Rick Jahnke
Troy Surber
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Port Townsend Staff
John Mauro, City Manager
Connie Anderson, Director of
Finance & Technology Services
Ron Logghe, Finance Manager
Steve King, Director of Public Works
Carrie Hite, Director of Parks &
Recreation Strategy
BERK Consulting Staff
Katherine Goetz, Project Manager
Julia Tesch, Lead Facilitator and
Analyst
Oliver Hirn, Financial Analyst
PROJECT OVERVIEW
Project purpose: Engage community members in a conversation around the City’s long-term financial
sustainability and its ability to provide quality municipal services. Build knowledge in the community about
how the budget works, the constraints Port Townsend faces, and how everyone can work together to prioritize
needs.
Part of the “Engage PT” initiative.
Taskforce charge
Advise City staff on community engagement materials and strategies.
Provide a report to City Council with directional recommendations for financial sustainability and delivery of
quality municipal services, considering both revenue and cost/service options.
4
CITY COORDINATING EFFORTS & TIMESCALES
City of Port Townsend Budgeting Process Related 2023 Public-Facing Projects
Comprehensive streets program
Golf Course and Mountain View
Community health and wellness
Parking
Annual budgeting process: August –December
Related 2023 budget factors
ARPA
Banked capacity
CPA work (controls and policies)
Preliminary debt analysis
Staffing and resource needs
2023 draft work plan
A set of common/aligned principles & integrated objectives will drive success
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ROLES
6
Fiscal Sustainability
Taskforce
•Advise on engagement
strategy
•Review financial condition
and options and provide
recommendations to City
Council
City Manager and City Staff
•Attend and support
Taskforce meetings
•Provide context and
background information
•Review Taskforce
recommendations and
prepare presentation to
City Council
City Council
•Review Taskforce
recommendations
•Consider recommendations
in annual budget decisions
and long-term strategic
decisions
PROJECT SCHEDULE
7
Nov
2022
Dec
2022
Jan
2023
Feb
2023
Mar
2023
Apr
2023
May
2023
June
2023
July
2023
Aug 2023 and
Ongoing
Implementation
2024 Budget
Ballot?
Taskforce
Meeting
1
Taskforce
Meeting
2
Taskforce
Meeting
3
Taskforce
Meeting
4
Taskforce
Meeting
5
Draft
Report to
Council
Final
Report to
Council
Public
Survey
In-person /virtual
public engagement
COMMUNICATIONS NORMS AND EXPECTATIONS
Please come to meetings prepared, having reviewed materials in advance.
If you are someone who typically has a lot to say, we invite you to practice active listening. If you are
someone who typically prefers to stay quiet, we invite you to practice speaking up.
Please bring your full focus to meetings and avoid multitasking.
Meetings will be hybrid –if you are in person, please speak into a microphone to enable full
participation from remote colleagues
Meetings will end on time.
Meetings will not include time for public comments.
If you cannot attend, please do not send a substitute.
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BUDGET 101
9
BUDGET 101: OVERVIEW
10
WHAT IS A BUDGET?
The budget is an economic plan that focuses the entity’s financial
and human resources on the accomplishment of specific goals and
objectives established by the policy makers.
The budget establishes the annual revenue and expenditure levels,
called appropriations, for departments and funds.
A city budget must be balanced.
Port Townsend currently operates on an annual budget and all
appropriations are for that calendar year alone.
11
What is the purpose of a
budget?
Legal requirement
Accountability and
transparency
How the City spends taxpayer
and ratepayer money
Sharing accomplishments
Performance evaluation
Performance measures
Management tool
Planning document
HOW DOES THE CITY SET A BUDGET?
12
June/July
•Public input
•Goals/policies
•Council retreat
•Budget calendar
August/
September
•Forecasting
•Departmental
budget requests
•Revenue
projections and
budget proposals to
City Manager
October
•Preliminary
projections to
Council
•Council workshops
November/
December
•City Manager
submits preliminary
budget and budget
message
•Public hearings
•Setting levy rates
•Adoption of budget
Annual Budgeting Process
WHAT SERVICES DOES THE BUDGET PROVIDE FOR?
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SERVICES PROVIDED BY THE CITY
Development Services: Planning,
permitting, inspections
General Government: City
management, legal services, finance,
human resources, IT
Library: Library services
Parks, Recreation & Community
Services: Park maintenance,
recreational activities
Police: Public safety services
Public Works: Maintenance of
physical infrastructure and
transportation systems
Solid Waste: Garbage and recycling
services
Water/Sewer: Drinking water, sewer
treatment services
SERVICES PROVIDED BY OTHER ENTITIES
Electricity (via Jefferson County PUD)
Fire prevention and emergency response services (via East Jefferson Fire
and Rescue)
K-12 education (via Port Townsend School District)
Port maintenance (via Port of Port Townsend)
Public transit (via Jefferson Transit Authority)
911 services (via JeffCom)
SERVICES PROVIDED BY JEFFERSON COUNTY
Assessor: Assessment of real property
Economic Development: Business attraction and retention
Emergency Management: Disaster planning, mitigation, and recovery
Environmental Public Health: Water quality maintenance, preservation of
open space, per-mitting of waste systems
Municipal Court: Processing of cases and collection of fines
Public Health: Communicable disease management, family health services
WHAT CHALLENGES ARE COMMON FOR CITIES?
Cap on property taxes
Washington’s 1% property tax limit constrains
growth of one of the City’s primary revenue
sources
Revenues do not keep up with inflation or
expenditures
New construction adds to the tax base, which
incentivizes cities (and counties) to grow
Economic and external influences: Some
revenue streams like sales tax are impacted by
economic downtowns and external events (e.g.,
the COVID-19 pandemic)
Limited revenue options: Some tax rates have a
maximum set by state statute and some revenues
have a restricted use (e.g., lodging tax, real estate
excise tax)
Addressing deferred maintenance: Many cities
defer equipment or infrastructure maintenance or
replacement to deal with budget shortfalls
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Example: City of Tacoma six-year General Fund forecast
WHAT QUESTIONS DO YOU HAVE SO FAR?
15
BUDGET 101: REVENUES
16
HOW ARE CITY SERVICES FUNDED?
The General Fund is the City’s primary pool of flexible, unrestricted funding, where the City has the
most discretion over how to invest public resources in services for the community.The General Fund is
primarily supported by property taxes and general sales taxes.
The City has other funds that have restrictions, which means the money can only be used for specific
purposes or services.
Today’s discussion focuses on the General Fund.
17
CITY OF PORT TOWNSEND GENERAL FUND REVENUES
18
70%70%72%
75%
16%18%19%
17%5%3%4%
4%
2%6%2%
2%3%2%1%
1%
$-
$2,000,000.00
$4,000,000.00
$6,000,000.00
$8,000,000.00
$10,000,000.00
$12,000,000.00
2019 2020 2021 2022
Other
Intergovernmental Services
Licenses & Permits
Charges for Goods & Services
Taxes
PROPERTY TAX & SALES TAX REVENUES FOR THE CITY OF PORT
TOWNSEND
19
44%47%44%42%
30%
29%25%
33%23%
21%19%
18%
3%
3%12%
7%
$-
$1,000,000.00
$2,000,000.00
$3,000,000.00
$4,000,000.00
$5,000,000.00
$6,000,000.00
$7,000,000.00
$8,000,000.00
2020 2021 2022 2023
Property Tax - Other
Property Tax - Library
Property Tax - General
Sales Tax Revenue
PROPERTY TAX DETAIL
20
Levy Rate
Levy rate per
$1,000
Valuation
Percent
of Total
Levy
Tax on a
$300K
home
State Levies (School)2.734 28.40%$820
Local Schools 2.026 21.10%$608
City of Port Townsend 1.5678 16.30%$300
County Current
Expense*1.2178 12.70%$128
Fire District 0.999 10.40%$12
Port of Townsend 0.521 5.40%$470
Emergency Medical
Services 0.425 4.40%$156
Public Utility District 0.0815 0.80%$24
Hospital District 0.0399 0.40%$365
Totals 9.6120 100.0%$2,884
*includes Mental Health, Veteran's Relief, Developmental Disabilities
50% Schools
15%
Fire/
EMS
13%
County
16%
City
of PT
7% Port/PUD
SALES TAX DETAIL
21
Levy Rate Tax Rate Percent
of Total
Tax on a
$100
Purchase
State of WA 6.40%70%$6.40
City of Port Townsend 0.98%11%$0.98
Jefferson Transit Authority 0.90%10%$0.90
Jefferson County 0.73%8%$0.73
JeffCom 0.10%1%$0.10
Total Tax Rate 9.10%100%$9.10
1% JeffCom
70% State of WA
8% County10% Transit11% City of PT
QUESTIONS?
22
BUDGET 101: EXPENDITURES
23
WHAT DOES THE CITY BUDGET PAY FOR?
The City’s General Fund pays for services such as general government (e.g., City management, finance, IT,
facilities), planning and development, and police.
It includes transfers to other funds to pay for services like street maintenance and park maintenance.
24
GENERAL FUND EXPENDITURES BY FUNCTION
25
19%17%18%17%
12%11%11%10%
38%
36%38%36%
6%
8%
7%6%
25%
29%26%
31%
$-
$2,000,000.00
$4,000,000.00
$6,000,000.00
$8,000,000.00
$10,000,000.00
$12,000,000.00
2019 2020 2021 2022
Non-Departmental (Debt Service, Transfers
to other funds)
Contracts & Intergovernmental
Police
Planning & Development Services
General Government (City management,
Finance, HR, Attorney)
GENERAL FUND EXPENDITURES BY CATEGORY
26
33%32%34%33%
13%13%15%14%
24%28%25%
29%
22%25%23%
22%
4%
1%1%
1%
$-
$2,000,000.00
$4,000,000.00
$6,000,000.00
$8,000,000.00
$10,000,000.00
$12,000,000.00
2019 2020 2021 2022
Other
Services
Other Financing (including Transfers Out)
Benefits
Salaries
DISCUSSION
What questions do you have about the Budget 101 presentation?
What did you find the most interesting? What did you find the most surprising?
Did this presentation clear up any misconceptions for you?
What challenges will we encounter in sharing the Budget 101 information with the community? How can we
address those challenges?
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COMMUNITY ENGAGEMENT
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COMMUNITY ENGAGEMENT OVERVIEW
PURPOSE
Build public understanding of City budgeting processes and constraints.
Gather input from residents to ensure future City budgeting is aligned with resident priorities.
TIMELINE
Round 1 (January): Online survey to gauge community satisfaction with current City services and
understand community priorities
Round 2 (March/April): In-person and/or virtual engagements to provide information about how the City’s
budget works and collect input on potential revenue options
29
JANUARY SURVEY OVERVIEW
Objectives
1.Understand residents’ current level of satisfaction with services
provided by Port Townsend.
2.Understand how residents balance level of service and cost for
service.
3.Gather input to guide the selection of topics for the Budget 101
presentations in spring of 2023.
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DISCUSSION
What feedback do you have
on the draft survey?
What outreach methods would
you suggest?
Who in the community do we
want to make sure we
engage?
NEXT STEPS
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NEXT STEPS
Survey finalization and launch
Late January: Task Force Meeting 2 to review the City’s financial forecast
Questions: Contact Connie Anderson at canderson@cityofpt.us
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