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HomeMy WebLinkAbout2023 Final BudgetCity Manager ’s Final Budget 2023 TABLE OF CONTENTS 2023 City Manager Budget Message……………………………………………................3 2023 Fund Summaries……………………………………………………………….………23 Staffing & Compensation Summary…………………………………………………..……59 CIP Summary and Project Pages…………………………………………………..………67 Council, Committees & Advisory Boards……………………………………..………...…99 * Cover Photo, “Concerts on the dock” by David Conklin Photography 2023 Budget Book - Page 1 of 102 2023 Budget Book - Page 2 of 102 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 THE 2023 CITY MANAGER BUDGET AND 2022 REVIEW Message from the City Manager: I am proud of our community for how well we have bounced back – and forward – from some of the most difficult years in memory. Our renown festivals, events, performances, and activities came fully alive after a bit of dormancy the last few years, igniting our imaginations, spirits and the kind of cohesiveness that brings a great community together. Of course, this makes me deeply proud of our partners from all sectors that put their energies, inspiration, hard work and creativity to the task of breathing this new life into Port Townsend. Thank you. I am also proud of our City team for how they have continued to work diligently through real adversity to deliver the services you depend on – everything from water, streets and library books to parks, permits and public safety. Not only has the team worked through unprecedented difficulties related to Covid, but they have done so in the face of issues amplified by Covid, like our historic staff recruitment and retention challenges. Almost all City teams were understaffed and many still are. Because our staff count has been trending downward the past decade, we were already operating beyond maximum effort. Being down further puts far more load on everyone and makes it harder to get the job done. Despite these challenges, the team and I have focused squarely and holistically on the budget process, as the budget underpins everything we do. Together, we have created better processes, better collaboration, better tools, better delivery, and better strategy. I’d like to explain each of these to you briefly. 2023 Budget Book - Page 3 of 102 Better Processes Like the last couple of years, we front-loaded our 2023 strategic workplan retreat with City Council in the summer, a half-year earlier than usual. Doing this allows us to decide our priorities first, and then let those priorities shape the development of a budget that focuses on delivering and investing in our priorities. With new finance team leadership, we have also been working to reexamine and understand the past with an aim for wholesale improvements in how we do things. One of these areas was the all-team development of a Capital Facilities Plan so we have a good trajectory for across-the-board investments over the next 6+ years and continue to build out a more forward-thinking and comprehensive vision. Another area was in unraveling layers of unnecessary complexity in general revenue to create one main revenue line to the general fund. This strategy allows us to determine the best allocation of general revenue to best support departments, programs, and priorities. Better Collaboration Similar to how all departments collaborated together on the Capital Facilities Plan, department directors have been increasingly involving their managers and teams in the budget process, so the budget reflects their expertise, observations and experience. Department directors and I continue to work through the budget together almost every step of the way – and this has been enjoyable as we’ve onboarded new department directors who have embraced this approach. Beyond our direct City team, we continue to collaborate on budget-related items with other organizations and agencies. For instance, the Intergovernmental Collaborative Group (ICG) has held public sessions on coordinated capital investments, projects and housing, fueled by renewed commitments and the momentum of recent state and national awards to take us to greater heights. Each investment or project has a direct budget impact or strategic investment angle, so the better we collaborate, the better we all do. Better Delivery Collaboration and hard work have driven several successes this past year. They help build momentum and practice – and we try to learn from them as well as from our mistakes. Despite the problems borne by the pandemic, we have made new headway like planning and building new projects, signing new historic agreements, recruiting and retaining great talent, making investments in streets and parks, delivering great programs and committing to even more productive partnerships. Whether on the streets, in our water system or at our library, the City team continues to innovate for better delivery for our community. 2023 Budget Book - Page 4 of 102 Better Tools Our financial forecasting continues to resemble a quality crystal ball. The team continues to work with high uncertainty and to do very well anticipating and preparing for trends. The financial forecast looks strong for 2023 as we come through Covid with most revenue streams on the rise. Of course, inflation and costs are on a fast rise too, so that’s why I’m thrilled to have excellent financial firepower in the team to get the balance right. Beyond the team, we have a second installation of one-time federal ARPA fund dollars to program and another year of restricted “banked capacity” funds from the annexation of our Fire Department into East Jefferson Fire Rescue. Those tools will likely help us fill gaps created and exacerbated by Covid. They also may be forerunners for others that might emerge from our Financial Sustainability Task Force and their report to City Council next year. Better Strategy Making those improvements above are an awesome start, but if we just cruised along year to year, we would start to lose ground on longer-term financial sustainability and the challenges of balancing a budget would only get more difficult. That’s why we are lining up our 2023 budget process within the context of our financial sustainability project – and why one of the top strategic priorities is “strengthen our financial position.” Doing so will help ensure our year-by-year budget priorities and investments put and keep us on a financially sustainable path so we can do what we do indefinitely. Where they come together is our integrated approach of using one-time federal ARPA funds strategically alongside the highly disciplined use of a healthy general fund reserve balance to pay off some of our debt. Doing so both provides priority tools and resources we need to be more effective while building some space otherwise occupied by debt payments. You might recognize those financial sustainability principles in practice elsewhere, too. For instance, they show up in everything from the reconstruction of a road like Walnut Street and the installation of an Edge Lane Road to the completion of Banked Capacity projects for parks and the development of the Capital Facilities Plan. We are committed both right now and in the long run to stewarding every dollar of public funds for the best positive benefit for all of our community. Now that you know a little bit about the budget philosophy and what guided the budget development, what’s the snapshot of what’s actually in the 2023 budget? A few highlights: New positions. There are a total of 100.7 Full Time Equivalent (FTE) positions, up from 95.2 in 2022. This is an increase after consecutive years of reduction (from 109.2 in 2018). New budgeted positions include a Long-Range Planner, a Communications and Marketing Manager, a Deputy Police Chief, an HR Assistant, 2023 Budget Book - Page 5 of 102 an in-house Behavioral Health Navigator, a Housing Grant Coordinator and five seasonal workers (Parks, Streets, Facilities). New equipment and resources. Use of a healthy equipment reserve fund and one-time federal funding allows for the purchase of long-needed equipment to make work more efficient and effective. This includes a temporary long-range planning position referenced above, parking management implementation support, public record scanning, audio-visual improvements for public meetings, security and performance upgrades to Information Technology systems, replacement of key City vehicles, match for Kah Tai restroom improvements, and improvements in the City Hall staff working environment. New collaborations/projects. “Banked Capacity” annexation levy funding prioritizes street improvements across the city. The “How Your City Works” program will be scaled up in 2023 and the Communications and Marketing Manager position will amplify existing relationships and opportunities. A number of task forces – including Financial Sustainability, Envision the Golf Course, Healthier Together, deer management, Equity-Diversity-Inclusion Advisory Body – will advance complex issues for City Council consideration. New savings. New approaches and innovation in how we deliver services will create savings. These include but are not limited to road surfacing, traffic calming treatments, LED lighting, and facility repair and maintenance. New revenue. The Port Townsend Paper Corporation (Mill) will continue to contribute capital (and some general) funding to the water system through the water use agreement and this will be the first full year of billing for their water consumption. ARPA and Banked Capacity funding continues in 2023, with Banked Capacity funding increasing by approximately $300,000 (to deliver on street projects noted above). New approach to pay down debt. Using our healthy general fund reserve balance, currently far above the 8-15% policy, to pay off some of our existing debt (bonds totaling about $600,000 and $1,000,000) will help provide some headroom for the coming years which would have otherwise been used for debt payments. Thank you for your interest and involvement in this community endeavor. I encourage you to dive into more detail in the budget book. I hope you’ll see that we have started to move past these difficult years to put ourselves in a better financial position for the long term. After all, our community depends on the City to be stable, sustainable and supportive – and we all depend on each other to create a healthy, inclusive and resilient community for us and for future generations. John Mauro City Manager 2023 Budget Book - Page 6 of 102 2023 BUDGET 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: 2023 Budget Book - Page 7 of 102 AMERICAN RESCUE PLAN ACT The American Rescue Plan Act of 2021 (ARPA) provided $350 billion in funding for state and local governments. The City of Port Townsend was awarded $2,755,388. The first tranche of this funding, $1,373,493, was received in July 2021. The second half was received in July 2022. The funding has limited eligible uses but, in general, can be used for: Revenue replacement for the provision of government services to the extent the reduction in revenue was due to the COVID-19 public health emergency. COVID-19 expenditures or negative economic impacts of COVID-19, including assistance to small businesses, households, industries, and economic recovery. Premium pay for essential workers. Investments in water, sewer, and broadband infrastructure. Based on updated guidance received from the Federal Treasury in March 2022, the City determined that the best use of the funds received from ARPA is Revenue Replacement. These funds are temporary in nature and non-recurring so care should be used in allocating these funds in ways that do not add programs that require ongoing financial commitments. In September 2021, the City Council discussed the adoption of three priority pillars when determining the programs/projects these funds would be allocated to. These pillars are 1) support staff, 2) support financial sustainability, and 3) deliver an integrated community backed vision for parks and recreation. Based on these pillars, an array of projects was presented for consideration in both 2021 and 2022. In 2022, all prior projects were reviewed to ensure federal guidance requirements will be met. The funds must be obligated before December 31, 2024 and spent by the end of 2026 as specified in the ARPA Treasury guidelines. The updated project list below totals $2,755,388 and allocates both tranches of funds: 2023 Budget Book - Page 8 of 102 In 2022, a Special Revenue Fund was established to monitor the ARPA revenues and proposed expenditures based on best practice guidance received from the State Auditor’s Office to ensure proper accounting and coding for these funds. Anticipated operating expenses and corresponding transfers are reflected in the graphs and materials presented in the budget. 2023 BUDGET ASSUMPTIONS The 2023 City Manager Proposed Budget allocates resources to initiatives included in the City’s 2023 strategic workplan. This workplan was developed by staff and reviewed and workshopped with the City Council at an all-day retreat held on July 18, 2022. The 2023 strategic workplan is broken down into seven major categories: INVEST IN OUR PEOPLE Build and nurture the capacity of our staff, teams, volunteers, advisory board 2023 Budget Book - Page 9 of 102 members, Councilmembers and partnerships and provide them the toolsets, skillsets, and mindsets to achieve more together ENGAGE OUR COMMUNITY Build beyond notification and response to more deeply and inclusively engage our community in decisions that affect their lives and livelihoods as well as ground civic dialogue in civility and kindness STRENGTHEN OUR FINANCIAL POSITION Set the City and community up for sustained success by deliberately choosing to build financial sustainability to address the challenges of today and prepare for tomorrow ENVISION OUR SUSTAINABLE FUTURE Determine the future of parks, streets, facilities, community assets, as well as our strategic direction as an organization and community EMBRACE AND RESOLVE OUR COMMUNITY'S CHALLENGES Work through additional challenging decisions previously deferred that help shape our community's well-being, including many that have been put off for years or decades DELIVER THE BASICS Advance additional capital & operational departmental priorities with needed City Council policy or budget action(s) SERVE OUR COMMUNITY Deliver on critical operations, ongoing statutory responsibilities, and core City functions Associated funding in the 2023 budget has been given to specific budgeted items. Staff time for many of the projects is a key component to successful completion. A summary of the City’s 2023 strategic workplan is included as part of the 2023 Budget Book. AFFORDABLE HOUSING Affordable Housing is a key priority for 2023 and beyond. The City continues its work to support efforts for affordable housing in the city and region. The City has made significant contributions to housing in a variety of ways. Some key examples of these contributions are: Implementation of a Sales & Use Tax for Affordable and Supportive Housing (Substitute House Bill 1406) in 2020. This tax is a tax credit against the state portion of our City sales tax and did not increase the total amount of retail sales tax. Investment of approximately $21,000 per year; cumulative total of $63,000 through 2022. Fee deferrals for housing providers for certain permit fees and system development charges. Providers include Habitat for Humanity, Peninsula 2023 Budget Book - Page 10 of 102 Housing, Olympic Community Action Program and Bayside Housing & Services. Total investment from 2011-2021 of $420,914. The City Council directed staff to pursue different options for the Cherry Street property after several failed attempts to materialize affordable housing construction. This year’s budget includes funding to prepare the City’s Cherry Street property for surplus. Proceeds from the property may be dedicated to support affordable housing in other locations. In 2022 $100,000 was approved by City Council to accomplish this work. The work will likely be performed in 2023. Investment of approximately $62,000 annually for debt service payment with a total commitment over a 20-year period of $1,324,125 for total principal and interest payments. The City obtained a grant from Department of Commerce in 2021 to acquire property that will be earmarked for affordable housing – Grant provides investment of $1,375,000 for the property purchase. Fourteen acres was acquired for the Evans Vista Neighborhood. The City obtained a grant from Department of Commerce in 2021 to build utility infrastructure to support affordable housing – Grant provides investment of $1,700,000 for the extension of utilities to lower the cost of building affordable housing. The City secured $500,000 in 2022 to Master Plan the Evans Vista neighborhood from the Jefferson County American Rescue Plan Act funds. The City Council has also made legislative changes related to housing including: Adopted multi-family tax exemption (Ordinance 3200, 2018) – provided limited or 12-year exemptions from ad valorem property taxation for qualified new multiple- unit housing in targeted areas Removed the owner-occupied requirement for Accessory Dwelling Units (ADUs) (Ordinance 3241, 2019) Adopted regulations to allow up to an eight-plex in the R-II single-family zone through a conditional use permit (Ord. 3241, 2019) Raised the maximum SEPA threshold exemption to the maximum allowable (Ord. 3241, 2019). Projects that may be eligible for SEPA exemption include single- family residential projects, up to 20 dwelling units, and multi-family residential projects, up to 60 dwelling units. Repealed modulation requirements (Ordinance 3247, 2020) Increased the size allowed for an attached ADU to 1000 square feet (Ordinance 3247, 2020) Decreased the lot size allowed in a cottage development to 2500 square feet (Ordinance 3247, 2020) Adopted regulations allowing zero lot line/shared wall construction duplexes (Ordinance 3272, 2021) Reduced the minimum lot size allowed in a Planned Unit Development to 2000 square feet (Ordinance 3272, 2021) 2023 Budget Book - Page 11 of 102 The City also worked in partnership with Jefferson County through our Interlocal Agreement to support affordable housing and homeless housing programs. The new Housing Fund Board builds on collaborative efforts from the previous Joint Oversight Board and Housing Task Force to create a budget and plan for the use of collective affordable housing funds like the aforementioned Sales and Use Tax as well as other local-authority funding. This effort aims at greater participation by elected officials and greater transparency in the granting process for a more successful and coordinated program. The City continues to explore additional strategies to promote affordable housing. The 2023 budget includes the following request to further affordable housing initiatives: Long Range Planner funded with 2-year American Rescue Plan Act allocation. Professional Services Budget for code amendments that build residential capacity and key up prioritization for an annual 2023 Comprehensive Plan Amendment. KEY REVENUE ASSUMPTIONS The City’s Property Tax Levy for 2023 is proposed at $3,874,792, 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 $33,248 for 2023. Additionally, the City’s property tax levy includes $311,549 of banked capacity (discussed below). New construction in the city is estimated at $24,219,067. Property values in the city grew in the aggregate by 20% or approximately $442,107,433. The General Levy totals $2,531,637. The General Levy is allocated via internal transfers 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 $1,193,155 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. The City had $908,724 of banked levy capacity related to the annexation of City fire services into the East Jefferson Fire District service area. The City Council adopted a post-annexation policy which allowed the City to levy the banked capacity incrementally over a 3-year period. In 2020, the City Council’s adopted post-annexation policy allowed the City to levy the first 33% of the banked capacity. Due to the economic conditions during the pandemic, the Council chose not to levy the banked capacity in 2020 for 2021 taxes. In 2021, the City Council’s adopted post-annexation policy allowed the City to levy 66%, or $602,610 of the banked capacity in 2021 for 2022 taxes. 2023 Budget Book - Page 12 of 102 In 2022, the City Council’s adopted post-annexation policy would allow the City to levy the remaining 34%, or $306,114 of this banked capacity in 2022 for 2023 taxes. The post-annexation policy restricts the use of these funds from 2020 through 2024 for specific uses. The planned projects that this banked capacity levy will fund in 2023 include: $800,000 - Residential Street Repair projects & contingency $ 40,000 - RCO grant match or park related project $ 68,000 - Contingency $908,000 -Total Banked Capacity Projects Additional detail is provided in the Capital Improvement Projects section of the budget book. Below is a chart showing the distribution of property taxes: 2023 Budget Book - Page 13 of 102 Retail Sales Taxes in 2022 are projected to come in at 12% above the forecasted 2022 adopted budget reflecting continued recovery from Covid-19 related decreases in 2020. A year over year comparison for the year-to-date period through Sept of sales tax data indicates that all sectors showed improvement in 2022 as compared to the 2021 with the exception of manufacturing which was showed a 7% decrease. Increases in accommodation/food were up 13% compared to this period of time in 2021. In 2023, the City’s budget anticipates sales tax revenue growth of 2.0% as compared to the 2022 estimated revenue. Below is a chart demonstrating the trend of retail sales taxes over the last five years showing the forecasted growth for 2023. 2023 Budget Book - Page 14 of 102 Retail sector as a % 2022 year to date Revenue through September. Lodging Taxes are projected at $525,000 for 2022, which is 19% higher than the 2022 adopted budget of $441,0000. The 2023 budget forecast maintains this forecast for 2023. Expenditures are restricted to marketing and tourism related infrastructure. The chart below depicts the significant impact COVID-19 has had on tourism related taxes in Port Townsend in 2020 and the recovery since then. 2023 Budget Book - Page 15 of 102 Business & Occupation Taxes are projected to be above the budgeted amount of $794,000 by 13% for 2023. The 2023 amount is maintained at this forecast of $900,000. Real Estate Excise Taxes (REET) year to date collections in 2022 have been favorably impacted by a robust housing market. The 2022 REET revenues are projected to be $706,000 or 28% greater than the adopted budget. 2023 REET revenues are budgeted at $700,000. 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. Utility Tax revenues in the proposed 2023 budget are based on all City water, sewer, storm water and garbage services. In 2018, City Council renewed an additional 2% tax for five more 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 2023 is $2,011,466 and is split among General Services (45%), Public Safety (7%), Streets (39%) and Community Services (9%). Garbage service is required within the City. Garbage utility tax is slated to increase at the monthly service rate increase of 8% (contracted CPI adjustment). Private utility tax rates are 6% of the private utility revenue. The 2023 telephone and electric private utility taxes are estimated to be $869,000. The electric and telephone utility taxes are projected to increase by 2% compared to 2022 projections. 2023 Budget Book - Page 16 of 102 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 2022 listed by the Office of Financial Management as 10,290 (a 4.8% increase from 2020’s population of 9,815). 2023 projected state shared revenue is $401,209. Overhead Cost Recovery is projected to increase by approximately $108,164, or 6% in 2023. 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 2021 for 2023. The increased revenue in 2022 is primarily the result of allocating more overhead to the Streets, Water, Sewer, and Community Funds due to increased property valuations, debt service costs and Council agenda bills in those funds. Utility Revenues (Water, Sewer and Stormwater) are budgeted at the adopted rate increases outlined in the rate tables in Ordinance 3281. The City uses utility rate models provided by FCS Consulting Group, to analyze whether our utility rates fully support capital infrastructure and operations of water, sewer, and stormwater. In 2023, the City is projected to have a total of 5,235 water/sewer accounts with 464, or 8.9%, of those projected to be commercial accounts. Below is a chart demonstrating the growth in commercial and residential water/sewer accounts from 2019 through projected 2023: 2023 Budget Book - Page 17 of 102 Total water/sewer/stormwater revenue is forecasted to be $10,507,433 as compared to $9,531,121 in 2022, or a 10% increase. As noted earlier, this represents scheduled rate increases in ordinance 3281, and 1% account growth but also includes transfers in for debt service and from the mill agreement for services and operating capital. Increases excluding transfers in 2023 are 6% reflecting rate increases and growth in accounts. Capital Revenues provide substantial funding for general government, street and utility projects through state and federal grants and Department of Ecology loan 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. Total Revenues budgeted for 2023 are $49,837,970, comprised of capital funding of $3,304,181, fiduciary fund revenue of $34,235, and operating revenue of $46,499,554. 2023 Budget Book - Page 18 of 102 KEY EXPENDITURE ASSUMPTIONS 2022 Proposed Total Expenditures of $48,836,451 include all operating fund appropriations in addition to water, sewer, general and street capital funds. Labor Personnel Wages & Benefits represent a significant portion of the City’s operating expenses at $12,781,776 or 26% of proposed operating costs. Removing internal transfers and debt service from operating costs, staffing is 39% 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. Recruitment of key positions and police officers will continue be a challenge in 2023 due to a competitive labor market and housing affordability and availability. 2023 Budget Book - Page 19 of 102 Council member health benefits considered for the first time - City Council Members are considering the addition of health coverage. The budget as presented includes $50,000 to cover the costs if voted. For non-elected positions, the 2023 budget proposes a net increase of 5.5 positions. There are a total of 100.7 Full Time Equivalent (FTE) positions, up from 95.2 in 2022. This is an increase after consecutive years of reduction (from 109.2 in 2018). New budgeted positions include a Long-Range Planner, a Communications and Marketing Manager, a Deputy Police Chief, an HR Assistant, an in-house Behavioral Health Navigator, a Housing Grant Coordinator and five seasonal workers (Parks, Streets, Facilities). The positions are outlined by position in the chart below: 2023 Budget Book - Page 20 of 102 Employee groups include three sectors, the Police Collective Bargaining Unit, General Collective Bargaining Unit, and non-represented personnel. The Police Collective Bargaining Unit ratified a 2-year contract in July 2022. The new contract expires December 31, 2023. Negotiations for a new agreement will take place in 2023. Assuming some vacancies will continue in 2023, 15.0 full-time officers and 1.10 reserve/provisional officers were included in the budget and a vacancy factor considered. Recruiting and retaining officers continues to be a challenge for Port Townsend and nationally. The General Collective Bargaining Unit ratified a 3-year contract. The new contract expires December 31, 2024. With these collective bargaining agreements in place, wage rates for 2023 are contracted to increase 5.0% for all City staff. Due to current labor market conditions and higher than normal inflationary times, salary increases for staff are above average. All increases are included in the budget estimates for 2023. A full list of authorized positions along with the position classification salary schedule, and more detailed budget assumptions is included in the Staffing and Compensation section of the Proposed Budget Book. Benefits offered to employees include medical, dental, vision, long-term disability, life insurance and retirement. Medical costs for 2023 are forecast to increase by approximately 4.0% for the AWC benefit plan (general government non-represented employees), less the 2.0% WellCity discount. To achieve the discount, City employees who receive AWC benefits participate in a variety of wellness activities that promote a healthy lifestyle. The Teamsters Local 589 benefit plan, which covers both the Police and General Government union employees, is budgeted to increase 4.0% in 2023. Retirement contributions for most employees (PERS) are funded at 10.39% of eligible employee wages. The PERS contribution increase in September 2022. Police officers are covered by the LEOFF retirement system at a rate of 5.30% 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 MissionSquare (formerly ICMA) or Washington State deferred compensation program which is not employer funded. The 2023 budget includes 5 Seasonal Staff for Janitorial, Streets (2), and Parks (2) maintenance. Seasonal staff are typically hired between May and October and are budgeted at an equivalent to 0.50 FTE each. Seasonal staff support spring and summer clean-up efforts in parks, maintain streets right of ways as well as assist with weekend restroom and garbage collection. Washington State minimum wage increases in 2023 to $15.74 per hour, which is a $1.25 per hour, or 8.6%, increase. This increase impacts seasonal wage rates and some part time library positions. Additionally, the increase impacts higher level position through 2023 Budget Book - Page 21 of 102 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. The Director of People & Performance will continue to monitor the impact of minimum wage adjustments on all City positions. 2023 CAPITAL PROJECTS The proposed 2023 budget has a variety of capital projects that add new infrastructure investment and improve 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: Library windows & doors funded by 2017 bond proceeds City Hall ARPA funded improvements Kitchen shelter, kiosks/signs and playground funded by banked capacity Kearney Street – WSDOT project Kah Tai Restrooms Affordable housing Sims Way & Boatyard Street & sidewalk projects funded by banked capacity Water/Sewer and Stormwater Utility Capital Projects included in the capital budget: 1mg Standpipe project OGWS master meters & cathodic protection OGWS Lords lake Water line replacements – funded with capital surcharge fees Sewer outfall project funded with System Development and Department of Ecology loans/grants Wastewater nutrient study General master plan for sewer Affordable Housing Utility project 2023 Budget Book - Page 22 of 102 Mayor & Council Goal Statement: To provide cogent strategic guidance and policy direction as elected leaders and positive change-makers for the community they represent and serve, clearly understood and operationalized by City staff. Port Townsend 2023 Fund Summary 2023 Budget Book - Page 23 of 102 2023 Key Goal: Mayor and City Council are equipped with the tools and technical know-how to do their jobs well on behalf of the community they serve. Leverage relationships with AWC, including participation in their board of directors and conferences. 2023 Work Plan: Restore training budgets across departments and prioritize professional development opportunities for staff and Councilmembers Develop a handbook and enhanced, coordinated, and regular training Upgrades to Council chambers City Manager Goal Statement: To deliver integrated, strategic and sustainable value from the City organization to the community by operationalizing City Council policy direction, developing and leveraging partnerships, enhancing staff and team performance, providing clear direction, nurturing deep community participation and engagement, and ensuring continuous delivery of quality services. 2023 Key Goal: City Department Directors equipped and supported with the tools, skills and leadership know- how to do their jobs well on behalf of the community they serve, including training in common high performance organization methods and language to foster greater team cohesion and success. Strategic communications capacity builds public trust and confidence. 2023 Work Plan: Provide coordinated, simultaneous executive leadership training for department directors to build the best leadership team in WA City Attorney and City Clerk Goal Statement: To ensure the City’s compliance with regulatory and legal requirements, including the open public meetings act, the public records act, and bidding requirements; to provide clear and direct legal advice and risk management services; and to support the other City departments in completing their priorities 2023 Key Goal: Council Chamber technology upgrades Public records scanning and organization Port Townsend 2023 Fund Summary 2023 Budget Book - Page 24 of 102 2023 Work Plan: Advisory Board Handbook Equity, Diversity, and Inclusion Advisory Board Human Resources Goal Statement: To create and support a culture of growth and development, accountability, engagement, and effective communication. 2023 Key Goal: Improve staff engagement and job satisfaction Bolster training for all staff 2023 Work Plan: Launch engagement survey, analyze results, act Continue and improve staff training opportunities to include the Leadership Team Planning & Development Services Goal Statement: To steward the public engagement and community visioning process with Planning Commission and City Council to update the Comprehensive Plan in such a way that ensures equity, sustainability, and consistent implementation. Administer and enforce provisions of building, zoning, land division, environmental protection, streets, and relevant utility codes to ensure compliance with the Comprehensive Plan, state, federal and other city statutes. 2023 Key Goal: Streamline the process of adding housing units to the development pipeline with policy, regulatory, and procedural improvements. Complete e-permitting enhancements to be paperless in 2023. 2023 Work Plan: Prioritize and deliver targeted, timed, and impactful zoning code changes to help unlock and inspire affordable, dense, quality infill development. Initiate preliminary work for the 2025 Comprehensive Plan Update including a Buildable Lands Inventory. Determine future of Evans Vista demonstration project and deliver infrastructure to make it development ready. Assist with maximizing disposition of the Cherry Street – Carmel Building Port Townsend 2023 Fund Summary 2023 Budget Book - Page 25 of 102 Finance Department Goal Statement: Provide required and desired financial reporting and practices, steward preparation and collective oversight of balanced funds and budgets and information technology needs to ensure the success of all departmental and organizational activities. 2023 Key Goal: Work closely with the Financial Sustainability Task Force, City Council and City Leadership to deliver a plan that will ensure a financially sustainable future for the City 2023 Work Plan: Work with the Financial Sustainability Task Force to create a financial sustainability report and action plan to deliver to Council for action and next steps Revise budget schedule, process and reporting through improved processes and integrated software Analyze current debt load, capacity and propose sustainable debt policy Police Department Goal Statement: To work in partnership with our community to provide a safe and compassionate environment while reducing crime and the fear of crime. 2023 Key Goal: Become fully staffed using innovative recruiting and retention strategies Train and equip officers so they can provide the best possible service to the community Partner with the community to build trust while solving crime and reducing the fear of crime Hold officers to the highest standards through the use of policing best practices 2023 Work Plan: Sustainable staffing for Police Team Chief’s Cabinet/Advisory Forum Strategic Planning Path to Accreditation Port Townsend 2023 Fund Summary 2023 Budget Book - Page 26 of 102 2020 2021 2022 2023 Increase/Decrease Actual Actual Budget Proposed 2023 Proposed vs 2022 Budget Beginning Fund Balance 185,867 201,717 201,828 221,978 Revenues Taxes - - - - Licenses & Permits - - - - Intergovernmental Services - - - - Charges for Goods & Services - - - - Fines & Penalties - - - - Miscellaneous Revenue 850 111 150 150 0.0% Other Increases - - - - Other Financing Sources (inc. Transfers In)15,000 - 20,000 60,000 200.0% Total Revenue 15,850 111 20,150 60,150 198.5% Expenditures Salaries & Wages & Benefits - - - - Supplies - - - - Services - - - - Capital Outlays - - - - Debt Service - Principal - - - - Debt Service - Interest - - - - Other Financing Uses (inc. Transfers Out)- - - - Total Expenditure - - - - Net Change in Fund Balance 15,850 111 20,150 60,150 198.5% Ending Fund Balance 201,717 201,828 221,978 282,128 Fund Balance 2% of GF Rev 2.0%1.7%1.8%2.0%MEETS POLICY City of Port Townsend DRUG ENFORCEMENT / CONTINGENCY FUND BUDGET SUMMARY Contingency Fund Port Townsend 2023 Fund Summary 2023 Budget Book - Page 27 of 102 Street Operations Goal Statement: The City of Port Townsend Streets and Collections Division of Public Works has the primary responsibility of maintaining city streets, the wastewater collections system, and the stormwater collection system. Maintenance includes street repair, vegetation control, garbage management, special projects in right of way, event support, sidewalk repairs, annual cleaning of sewer and stormwater pipes, catch basin and maintenance holes maintenance, sweeping, and snow plowing. 2023 Key Goal: A primary goal of this division is to migrate away from right of way mowing to street repairs. This will involve drainage control work and moving to hot mix asphalt patching compared to cold mix pothole repairs. 2023 Work Plan: The division will play a primary role in supporting 2023 road restoration associated with banked capacity funds. The division will perform drainage control ahead of street work. The work plan includes purchasing hot mix asphalt repair equipment as well as performing a test section repair of Lawrence Street using recycled concrete to stabilize the base. Port Townsend 2023 Fund Summary 2023 Budget Book - Page 28 of 102 Goal Statement: The City Library’s mission is: Uplifting our community through reading, learning, connection, and creativity. Main areas of work: Books and material circulation including curbside delivery, databases, e-books and e- audiobooks, children’s web resources, grab bags, interlibrary loan Programs and events, including virtual programming, youth programming and adult programming Staff response to patron requests and associated services Access to technology Link to library’s strategic plan: https://ptpubliclibrary.org/sites/default/files/fileattachments/library/page/7905/ptpl_strategic_plan_202 1-25_updated_for_2022.pdf Port Townsend 2023 Fund Summary 2023 Budget Book - Page 29 of 102 2023 Key Goals: We will use our Core Services, partnerships, assets, and resources to continue to advance four Strategic Initiatives designed to help us be the best possible library for the Port Townsend community: o Increase equitable access to library offerings to serve all Port Townsend residents and visitors according to their needs, interests, and abilities. o Build community as a trusted convener and connector, both within and beyond library walls. o Help our Port Townsend community learn, do, create, and share. o Make efficient and effective use of local and regional resources. 2023 Work Plan: Library Capital Projects: Pink House restoration, window replacement, bathroom remodel Develop and launch "How Your City Works" v2.0, including curated and resourced short videos of core city functions with support of other City departments. Develop a 2023 theme and program (e.g., year of kindness) with tangible and visible participatory elements Port Townsend 2023 Fund Summary 2023 Budget Book - Page 30 of 102 2020 2021 2022 2023 Increase/Decrease Actual Actual Budget Proposed 2023 Proposed vs 2022 Budget Beginning Fund Balance 453,932 468,588 332,524 348,158 Revenues Taxes 522,565 842,221 550,000 700,000 27.3% Licenses & Permits - - - - Intergovernmental Services - - - - Charges for Goods & Services - - - - Fines & Penalties - - - - Miscellaneous Revenue 2,090 303 300 1,500 400.0% Other Increases - - - - Other Financing Sources (inc. Transfers In)- - - - Total Revenue 524,656 842,524 550,300 701,500 27.5% Expenditures Salaries & Wages & Benefits - - - - Personnel Benefits - - - - Supplies - - - - Services - - - - Capital Outlays - - - - Debt Service - Principal - - - - Debt Service - Interest - - - - Other Financing Uses (inc. Transfers Out)510,000 510,000 534,666 567,625 6.2% Total Expenditure 510,000 510,000 534,666 567,625 6.2% Net Change in Fund Balance 14,656 332,524 15,634 133,875 756.3% Ending Fund Balance 468,588 801,111 348,158 482,033 Sufficient to Meet Obligations MEETS POLICY City of Port Townsend REAL ESTATE EXCISE TAX FUND BUDGET SUMMARY REET Port Townsend 2023 Fund Summary 2023 Budget Book - Page 31 of 102 2020 2021 2022 2023 Increase/Decrease Actual Actual Budget Proposed 2023 Proposed vs 2022 Budget Beginning Fund Balance - - - 2,052,861 Revenues Taxes - - - - Licenses & Permits - - - - Intergovernmental Services - - - - Charges for Goods & Services - - - - Fines & Penalties - - - - Miscellaneous Revenue - - - - Other Increases - - - - Other Financing Sources (inc. Transfers In)- - 2,756,728 - -100.0% Total Revenue - - 2,756,728 - -100.0% Expenditures Salaries & Wages & Benefits - - - - Supplies - - - - Services - - - - Capital Outlays - - - - Debt Service - Principal - - - - Debt Service - Interest - - - - Other Financing Uses (inc. Transfers Out)- - 703,867 1,673,000 137.7% Total Expenditure - - 703,867 1,673,000 137.7% Net Change in Fund Balance - - 2,052,861 (1,673,000) -181.5% Ending Fund Balance - - 2,052,861 379,861 Sufficient to Meet Obligations 0.0%0.0%16.6%2.7%MEETS POLICY City of Port Townsend ARPA American Rescue Plan Act Fund BUDGET SUMMARY Contingency Fund Port Townsend 2023 Fund Summary 2023 Budget Book - Page 32 of 102 2020 2021 2022 2023 Increase/Decrease Actual Actual Adopted Proposed 2023 Proposed vs 2022 Adopted Beginning Fund Balance 270,864 178,656 415,629 522,592 Revenues Taxes 339,547 525,079 441,000 525,000 19.0% Licenses & Permits - - - - Intergovernmental Services - - - - Charges for Goods & Services - - - - Fines & Penalties - - - - Miscellaneous Revenue 1,082 124 150 750 400.0% Other Increases - - - - Other Financing Sources (inc. Transfers In)- - - - Total Revenue 340,628 525,203 441,150 525,750 19.2% Expenditures Salaries & Wages & Benefits - - - - Supplies - - - - Services 250,053 125,185 194,187 339,343 74.8% Capital Outlays 57,783 38,045 15,000 15,000 0.0% Debt Service - Principal - - - - Debt Service - Interest - - - - Other Financing Uses (inc. Transfers Out)125,000 125,000 125,000 125,000 0.0% Total Expenditure 432,836 288,230 334,187 479,343 43.4% Net Change in Fund Balance (92,208) 236,973 106,963 46,407 -56.6% Ending Fund Balance 178,656 415,629 522,592 568,999 Sufficient to Meet Obligations MEETS POLICY City of Port Townsend LODGING TAX FUND BUDGET SUMMARY Lodging Tax Port Townsend 2023 Fund Summary 2023 Budget Book - Page 33 of 102 2020 2021 2022 2023 Increase/Decrease Actual Actual Budget Proposed 2023 Proposed vs 2022 Budget Beginning Fund Balance 7,242 7,278 9,569 9,569 Revenues Taxes 15,813 5,957 4,000 4,000 0.0% Licenses & Permits - - - - Intergovernmental Services - - - - Charges for Goods & Services - - - - Fines & Penalties - - - - Miscellaneous Revenue 36 1 - - Other Increases - - - - Other Financing Sources (inc. Transfers In)- - - - Total Revenue 15,848 5,958 4,000 4,000 0.0% Expenditures Salaries & Wages & Benefits - - - - Supplies - - - - Services 15,813 3,666 4,000 4,000 0.0% Capital Outlays - - - - Debt Service - Principal - - - - Debt Service - Interest - - - - Other Financing Uses (inc. Transfers Out)- - - - Total Expenditure 15,813 3,666 4,000 4,000 0.0% Net Change in Fund Balance 36 2,291 - - Ending Fund Balance 7,278 9,569 9,569 9,569 Sufficient to Meet Obligations MEETS POLICY City of Port Townsend FIRE/EMS FUND BUDGET SUMMARY Fire/EMS Port Townsend 2023 Fund Summary 2023 Budget Book - Page 34 of 102 2020 2021 2022 2023 Increase/Decrease Actual Actual Budget Proposed 2023 Proposed vs 2022 Budget Beginning Fund Balance 31,184 41,437 87,658 47,664 Revenues Taxes 78,307 118,265 96,302 30,001 -68.8% Licenses & Permits - - - - Intergovernmental Services - - - - Charges for Goods & Services - - - - Fines & Penalties - - - - Miscellaneous Revenue 134 28 100 100 0.0% Other Increases - - - - Other Financing Sources (inc. Transfers In)- - - 70,000 Total Revenue 78,441 118,292 96,402 100,101 3.8% Expenditures Salaries & Wages & Benefits - - - - Supplies - - - - Services 3,530 10,176 31,000 31,000 0.0% Capital Outlays - - - - Debt Service - Principal - - - - Debt Service - Interest - - - - Other Financing Uses (inc. Transfers Out)64,658 61,896 105,396 61,896 -41.3% Total Expenditure 68,188 72,072 136,396 92,896 -31.9% Net Change in Fund Balance 10,253 46,221 (39,994) 7,205 -118.0% Ending Fund Balance 41,437 87,658 47,664 54,869 Sufficient to Meet Obligations MEETS POLICY City of Port Townsend AFFORDABLE HOUSING FUND BUDGET SUMMARY Affordable Housing Port Townsend 2023 Fund Summary 2023 Budget Book - Page 35 of 102 2020 2021 2022 2023 Increase/Decrease Actual Actual Budget Proposed 2023 Proposed vs 2022 Budget Beginning Fund Balance 192,350 191,956 163,538 155,438 Revenues Taxes - - - - Licenses & Permits - - - - Intergovernmental Services 10,020 40,170 11,750 20,000 70.2% Charges for Goods & Services - - - - Fines & Penalties - - - - Miscellaneous Revenue 897 101 150 150 0.0% Other Increases - - - - Other Financing Sources (inc. Transfers In)- - - - Total Revenue 10,918 40,270 11,900 20,150 69.3% Expenditures Salaries & Wages & Benefits - - - - Personnel Benefits - - - - Supplies - - - - Services 11,311 68,689 20,000 20,000 0.0% Capital Outlays - - - - Debt Service - Principal - - - - Debt Service - Interest - - - - Other Financing Uses (inc. Transfers Out)- - - - Total Expenditure 11,311 68,689 20,000 20,000 0.0% Net Change in Fund Balance (394) (28,418) (8,100) 150 -101.9% Ending Fund Balance 191,956 163,538 155,438 155,588 Sufficient to Meet Obligations MEETS POLICY City of Port Townsend COMMUNITY DEVELOPMENT BLOCK GRANTS BUDGET SUMMARY CDBG Port Townsend 2023 Fund Summary 2023 Budget Book - Page 36 of 102 Community Services – Facilities, Parks Goal Statement: The City of Port Townsend Community Services Department is a Division of Public Works. The Department has the primary responsibility of managing city facilities, parks maintenance, the pool contract with the YMCA, the golf contract for operations, and operations of the Mountain View Campus. Additionally, the division expenses include funds for Strategic Parks Strategy in the form of salary and services support. This is a short-term expense to facilitate sustainable parks funding and to develop a vision for recreation and parks for the future. Port Townsend 2023 Fund Summary 2023 Budget Book - Page 37 of 102 2023 Key Goals: The facilities division goal for next year is to improve internal service through training and upgrades to city systems. The aging Mountain View Pool also is challenging for the facilities team to maintain and keep operational. Achieving facilities goals is reliant on seasonal and janitorial support included in this year’s budget proposal. This strategy will provide the time for the skilled employees to perform proactive maintenance and special projects such as small remodels that are typically contracted. The parks division proposes to expand deferred maintenance for trails and trees. The division looks forward to expanding the volunteer program consistent with the work plan goals. The department will look to hire and manage seasonals based on behalf of parks and streets which also will leverage the volunteer efforts. Parks will be hiring a new maintenance employee to fill the gap by a long-time retiring employee. Facilitate decision-making on the future of the golf course and Mountain View Campus and begin implementing the community-backed preferred approach. Develop sustainable park funding and strive for equitable distribution of funds in parks and trails. Embark on decision-making and engagement around the future of the aquatics/community health and wellness center. 2023 Work Plan: The facilities division will undertake City Hall HVAC, and a City Hall remodel as budgeted. The Division also is evaluating the Pink House and Pope Marine for restoration opportunities. The facilities division proposes to undertake the library projects associated with windows and restroom restoration. The parks division will undertake the kitchen shelter and install trail signage based on the 2022 banked capacity funding. The facilities division seeks to perform a buildings assessment and capital improvement plan to better understand investment needs based on proactive maintenance. The parks division has the goal of compliance with RCO for the Kah Tai restrooms to facilitate future parks grants. The parks division will also be part of an open space planning effort in the coordination of maintenance with the Jefferson Land Trust. The parks division is in the process of reviewing and revising the rules of the parks. The parks division includes short-term funding for parks strategy which includes significant projects of evaluating a health and wellness center to replace Mountain View Pool as well as evaluation of the Golf Course and its future use. It also includes working with the financial sustainability task forces to explore options for Parks and Recreation dedicated funding. Port Townsend 2023 Fund Summary 2023 Budget Book - Page 38 of 102 2020 2021 2022 2023 Increase/Decrease Actual Actual Budget Proposed 2023 Proposed vs 2022 Budget Beginning Fund Balance 96,823 97,548 155,559 156,296 Revenues Taxes 401,976 457,333 402,000 150,001 -62.7% Licenses & Permits - - - - Intergovernmental Services - - - - Charges for Goods & Services - - - - Fines & Penalties - - - - Miscellaneous Revenue 1,638 293 237 1,000 321.9% Other Increases - - - - Other Financing Sources (inc. Transfers In)4,060,250 1,302,467 1,309,180 2,644,637 102.0% Total Revenue 4,463,864 1,760,093 1,711,417 2,795,638 63.4% Expenditures Salaries & Wages & Benefits - - - - Supplies - - - - Services - 1,326 2,500 2,500 0.0% Capital Outlays - - - - Debt Service - Principal 3,685,896 1,053,485 1,087,123 2,190,266 101.5% Debt Service - Interest 777,243 647,272 621,057 606,250 -2.4% Other Financing Uses (inc. Transfers Out)- - - - Total Expenditure 4,463,139 1,702,082 1,710,680 2,799,016 63.6% Net Change in Fund Balance 725 58,011 737 (3,378) -558.3% Ending Fund Balance 97,548 155,559 156,296 152,918 Sufficient to Meet Obligations MEETS POLICY City of Port Townsend GENERAL OBLIGATION DEBT SERVICE BUDGET SUMMARY G.O. Debt Service Port Townsend 2023 Fund Summary 2023 Budget Book - Page 39 of 102 2020 2021 2022 2023 Increase/Decrease Actual Actual Budget Proposed 2023 Proposed vs 2022 Budget Beginning Fund Balance 538,656 428,596 403,245 403,149 Revenues Taxes - - - - Licenses & Permits - - - - Intergovernmental Services - - 1,372,000 656,400 Charges for Goods & Services - - - - Fines & Penalties - - - - Miscellaneous Revenue 2,267 237 - 1,000 Other Increases 12,961 - - - Other Financing Sources (inc. Transfers In)291,386 34,524 492,308 881,500 Total Revenue 306,614 34,761 1,864,308 1,538,900 Expenditures Salaries & Wages & Benefits - - - - Supplies - - - - Services 56,586 34,524 24,808 18,630 -24.9% Capital Outlays 176,191 11,914 328,887 1,267,500 285.4% Debt Service - Principal 60,000 - 1,415,500 - -100.0% Debt Service - Interest 1,742 - -- Other Financing Uses (inc. Transfers Out)122,154 13,675 95,209 - -100.0% Total Expenditure 416,673 60,113 1,864,404 1,286,130 -31.0% Net Change in Fund Balance (110,060) (25,352) (96) 252,770 -263402.1% Ending Fund Balance 428,596 403,245 403,149 655,919 62.7% Sufficient to Meet Obligations MEETS POLICY General CIP Fund Breakdown: 2020 Change in 2021 Change in 2022 Change in 2023 Change in Fund Balance Fund Balance Fund Balance Fund Balance 301 - General Capital (47,252) (24,874) (34,887) 142,678 315 - 2015 Bonds - - - - 350 - 2017 Bonds (49,504) 53 (95,209) (95,209) 355 - 2018 Bonds (13,304) (531) - 500 360 - 2020 Bonds - - - - Total (110,060) (25,352) (130,096) 47,969 City of Port Townsend GENERAL CAPITAL PROJECTS BUDGET SUMMARY General CIP Port Townsend 2023 Fund Summary 2023 Budget Book - Page 40 of 102 2020 2021 2022 2023 Increase/Decrease Actual Actual Adopted Proposed 2023 Proposed vs 2022 Budget Beginning Fund Balance 100,638 (71,221) 110,420 403,907 Revenues Taxes - - - - Licenses & Permits - - - - Intergovernmental Services 144,944 550,738 4,260,918 503,775 -88.2% Charges for Goods & Services - - - - Fines & Penalties - - - - Miscellaneous Revenue 362 39 - 500 Other Increases 5,869 - - - Other Financing Sources (inc. Transfers In)673,434 78,044 570,337 1,261,006 121.1% Total Revenue 824,609 628,821 4,831,255 1,765,281 -63.5% Expenditures Salaries & Wages & Benefits - - - - Supplies - - - - Services 58,692 78,044 45,182 34,978 -22.6% Capital Outlays 362,724 369,136 4,492,586 1,714,781 -61.8% Debt Service - Principal 540,000 - - - Debt Service - Interest 23,825 - - - Other Financing Uses (inc. Transfers Out)11,226 - - - Total Expenditure 996,468 447,180 4,537,768 1,749,759 -61.4% Net Change in Fund Balance (171,859) 181,641 293,487 15,522 -94.7% Ending Fund Balance (71,221) 110,420 403,907 419,429 Sufficient to Meet Obligations MEETS POLICY Street CIP Fund Breakdown: 2020 Change in 2021 Change in 2022 Change in 2023 Change in Fund Balance Fund Balance Fund Balance Fund Balance 304 - Street Vacation Proceeds 816 39 - - 305 - Street Capital Fund (172,675) 181,602 293,487 304,191 Total (171,859) 181,641 293,487 304,191 City of Port Townsend STREET CAPITAL PROJECTS BUDGET SUMMARY Street CIP Port Townsend 2023 Fund Summary 2023 Budget Book - Page 41 of 102 2020 2021 2022 2023 Increase/Decrease Actual Actual Budget Proposed 2023 Proposed vs 2022 Budget Beginning Fund Balance 12,219 6,252 5,485 2,287 Revenues Taxes - - - - Licenses & Permits - - - - Intergovernmental Services - - - - Charges for Goods & Services - - - - Fines & Penalties - - - - Miscellaneous Revenue 6,936 8,363 7,200 25,000 247.2% Other Increases - - - - Other Financing Sources (inc. Transfers In)- - 10,000 - -100.0% Total Revenue 6,936 8,363 17,200 25,000 45.3% Expenditures Salaries & Wages & Benefits - - - - Supplies 1,691 1,045 10,000 15,000 50.0% Services 11,212 8,085 10,398 9,672 -7.0% Capital Outlays - - - - Debt Service - Principal - - - - Debt Service - Interest - - - - Other Financing Uses (inc. Transfers Out)- - - - Total Expenditure 12,903 9,130 20,398 24,672 21.0% Net Change in Fund Balance (5,967) (767) (3,198) 328 -110.3% Ending Fund Balance 6,252 5,485 2,287 2,615 Sufficient to Meet Obligations MEETS POLICY City of Port Townsend GOLF COURSE FUND BUDGET SUMMARY Golf Course Port Townsend 2023 Fund Summary 2023 Budget Book - Page 42 of 102 2020 2021 2022 2023 Increase/Decrease Actual Actual Budget Proposed 2023 Proposed vs 2022 Budget Beginning Fund Balance 970,680 1,105,953 1,463,326 1,062,580 Revenues Taxes - - - - Licenses & Permits - - - - Intergovernmental Services - - - - Charges for Goods & Services 377,986 445,530 367,440 367,440 0.0% Fines & Penalties - - - - Miscellaneous Revenue 4,595 715 1,814 2,000 10.3% Other Increases - - - - Other Financing Sources (inc. Transfers In)- - - - Total Revenue 382,581 446,245 369,254 369,440 0.1% Expenditures Salaries & Wages & Benefits - - - - Supplies - - - - Services - - - - Capital Outlays - - - - Debt Service - Principal - - - - Debt Service - Interest - - - - Other Financing Uses (inc. Transfers Out)247,309 88,872 770,000 33,500 -95.6% Total Expenditure 247,309 88,872 770,000 33,500 -95.6% Net Change in Fund Balance 135,273 357,373 (400,746) 335,940 -183.8% Ending Fund Balance 1,105,953 1,463,326 1,062,580 1,398,520 Sufficient to Meet Obligations MEETS POLICY City of Port Townsend SYSTEM DEVELOPMENT CHARGES BUDGET SUMMARY SDCs Port Townsend 2023 Fund Summary 2023 Budget Book - Page 43 of 102 Water & Sewer Operations Goal Statement: The City of Port Townsend water and sewer (wastewater) fund is a combined fund although expenditures and revenues are tracked separately between water and sewer. The goal of these enterprise utilities is to work as a business unit to ensure that expenses do not exceed revenues while providing reliable utility services as an essential public service. 2023 Key Goal: The water division of public works will seek to implement the new cross connection program adopted by the City Council as required by the Washington Administrative Code. Port Townsend 2023 Fund Summary 2023 Budget Book - Page 44 of 102 The water division will continue replacing aging pipelines in order to make the system more reliable and minimize distribution system leakage. The water division will continue to implement the Water Supply Agreement with the Port Townsend Paper Mill and facilitate capital improvements into the Olympic Gravity Water System The wastewater division anticipates updating the NPDES Permit for the Wastewater Treatment Plant Discharge to the Salish Sea. The wastewater division is in the process of completing an update to the General Sewer Plan including an evaluation of nutrients as part of the city’s nutrient permit and evaluation of the compost facility/septage handling. 2023 Work Plan: The work plan for the water division is mostly focused on capital projects and filling the key position of Water Operations Manager. The water division has several capital projects such as the raw water master meter installation, OGWS pipeline assessment, Lords Lake East Dam stability evaluation, 1 MG standpipe coating design, cathodic protection of the OGWS, and rehabilitation of the control valve structure at the Big Quilcene Diversion. The work plan for the wastewater division is focused on capital projects such as the outfall subject to staffing, and preparation for the 2022 banked capacity investments at Pacific Street. Water and sewer project achievement is dependent on filling engineering staff positions. The wastewater division with the help of the PW administration, engineering, and finance, need to update the sewer rate model for the five-year period beginning in 2024 for City Council consideration. Port Townsend 2023 Fund Summary 2023 Budget Book - Page 45 of 102 2020 2023 2022 2023 Increase/Decrease Actual Actual Budget Proposed 2023 Proposed vs 2022 Budget Beginning Fund Balance 688,212 630,243 545,057 3,037,643 Revenues Taxes - - - - Licenses & Permits - - - - Intergovernmental Services - - - - Charges for Goods & Services - - 3,500,000 4,892,500 39.8% Fines & Penalties - - - - Miscellaneous Revenue 3,711 338 - - Other Increases 30,000 - 30,000 - -100.0% Other Financing Sources (inc. Transfers In)54,000 54,079 54,248 - -100.0% Total Revenue 87,711 54,417 3,584,248 4,892,500 36.5% Expenditures Salaries & Wages & Benefits - - - - Supplies - - - - Services 81,389 50,777 787,714 1,127,134 43.1% Capital Outlays 10,081 34,747 - - Debt Service - Principal 52,632 52,632 52,632 - -100.0% Debt Service - Interest 1,579 1,447 1,316 - -100.0% Other Financing Uses (inc. Transfers Out)***- - 250,000 429,000 71.6% Total Expenditure 145,680 139,603 1,091,662 1,556,134 42.5% Net Change in Fund Balance (57,969) (85,186) 2,492,586 3,336,366 33.9% Ending Fund Balance 630,243 545,057 3,037,643 6,374,009 City of Port Townsend Olympic Gravity Water System (OGWS) BUDGET SUMMARY Water Sewer CIP Port Townsend 2023 Fund Summary 2023 Budget Book - Page 46 of 102 2020 2023 2022 2023 Increase/Decrease Actual Actual Budget Proposed 2023 Proposed vs 2022 Budget Beginning Fund Balance 2,167,498 2,471,741 2,564,787 1,823,542 Revenues Taxes - - - - Licenses & Permits - - - - Intergovernmental Services - - 90,000 191,500 112.8% Charges for Goods & Services 1,355,769 1,427,205 1,461,329 1,461,329 0.0% Fines & Penalties - - - - Miscellaneous Revenue 10,529 1,407 961,500 1,427,500 48.5% Other Increases - - - - Other Financing Sources (inc. Transfers In)2,603,324 248,726 2,748,525 697,500 -74.6% Total Revenue 3,969,622 1,677,338 5,261,354 3,777,829 -28.2% Expenditures Salaries & Wages & Benefits - - - - Supplies - - - - Services 100,976 41,409 24,895 17,917 -28.0% Capital Outlays 505,545 215,301 4,000,125 1,374,000 -65.7% Debt Service - Principal 1,862,500 - - - Debt Service - Interest 49,639 - - - Other Financing Uses (inc. Transfers Out)***1,146,718 1,327,582 1,977,579 2,083,824 5.4% Total Expenditure 3,665,379 1,584,292 6,002,599 3,475,741 -42.1% Net Change in Fund Balance 304,243 93,046 (741,245) 302,088 -140.8% Ending Fund Balance 2,471,741 2,564,787 1,823,542 2,125,630 Sufficient to Meet Obligations MEETS POLICY Water/Sewer CIP Fund Breakdown: 2020 Change in 2021 Change in 2022Change in 2022 Change in Fund Balance Fund Balance Fund Balance Fund Balance 415 - Water / Sewer CIP 51,859 (7,946) (226,495) 169,690 420 - 2020 Revenue Bond Fund - - - - 430 - Utility Debt Reserve Fund 252,384 100,992 (514,750) 236,275 Total 304,243 93,046 (741,245) 405,965 *** Operating Transfers include funding Water Capital Debt Service in the Water / Sewer Operating Fund City of Port Townsend WATER/SEWER CAPITAL BUDGET SUMMARY Water Sewer CIP Port Townsend 2023 Fund Summary 2023 Budget Book - Page 47 of 102 Stormwater Operations Goal Statement: The City of Port Townend owns and operates a stormwater collection system that includes roadside ditches, wedge asphalt curbs, concrete curbs, rain gardens, and stormwater facilities such as Froggy bottoms. The Streets and Collections Division of Public Works is responsible for annual maintenance which includes cleaning, street sweeping, and stormwater repairs. This includes responding to heavy rain events to manage localized flooding. Leaf control is a major proactive maintenance strategy. The stormwater system is also managed by the engineering division to implement the Western Washington Stormwater Manual for water quality improvement. 2023 Key Goals: The Streets division seeks to shift resource investment from vegetation control to street repair. In particular, stormwater management is a key function that needs to be restored prior to street investments. The division will spend considerable time in 2024 working on restoring ditches and making small drainage improvements. Port Townsend 2023 Fund Summary 2023 Budget Book - Page 48 of 102 2023 Work Plan: In 2024, the City will become a NPDES Phase II community which means, the City will be required to obtain a NPDES permit for stormwater discharges to the Salish Sea. This will involve developing a compliance program in 2023. This may also involve hiring a new position to serve as the city stormwater compliance manager. The Stormwater system rates are due to be updated by January 1, 2024. Thus, a stormwater rate study will need to be performed in 2023. Additional projects include the construction of Discovery Road and restoration of stormwater control ahead of the 2023 Banked Capacity Street repairs. Stormwater management is required ahead of street investments. Port Townsend 2023 Fund Summary 2023 Budget Book - Page 49 of 102 2020 2021 2022 2023 Increase/Decrease Actual Actual Budget Proposed 2023 Proposed vs 2022 Budget Beginning Fund Balance (10,580) (188,183) 580 580 Revenues Taxes - - - - Licenses & Permits - - - - Intergovernmental Services 69,785 230,215 - - Charges for Goods & Services - - - - Fines & Penalties - - - - Miscellaneous Revenue - 480,023 - 200 Other Increases - -- - Other Financing Sources (inc. Transfers In)483,120 532,474 312,185 335,000 7.3% Total Revenue 552,905 1,242,712 312,185 335,200 7.4% Expenditures Salaries & Wages & Benefits - - - - Supplies - - - - Services - 9,014 22,185 29,510 33.0% Capital Outlays 449,010 1,044,935 290,000 301,970 4.1% Debt Service - Principal 270,000 - - - Debt Service - Interest 11,499 - - - Other Financing Uses (inc. Transfers Out)- - - - Total Expenditure 730,509 1,053,949 312,185 331,480 6.2% Net Change in Fund Balance (177,603) 188,763 - 3,720 Ending Fund Balance (188,183) 580 580 4,300 Sufficient to Meet Obligations MEETS POLICY City of Port Townsend STORMWATER CAPITAL BUDGET SUMMARY Stormwater CIP Port Townsend 2023 Fund Summary 2023 Budget Book - Page 50 of 102 Public Works Administration Goal Statement: The City of Port Townend Public Works Administration division is responsible for providing oversight and direction of the Public Works Department. The division goal is to provide support to all the divisions of public works in terms of budgeting and team development, compliance with regulations, development of partnerships, and implementation of best available science and practices subject to available resources. The division also leads large special projects and public engagement. Engineering also supports Public Works Administration with 50% of the City Engineer being funded from revenues of this division. 2023 Key Goals: The number one goal for this division is to fill the Deputy Public Works/City Engineer position. Until this position and the empty project engineer is filled, the capacity of Public Works to take on capital and special projects is limited. Fill the key role of water operations manager. Port Townsend 2023 Fund Summary 2023 Budget Book - Page 51 of 102 2023 Work Plan: Subject to budget and filling the City Engineer position, this division will lead the development and implementation of a parking management plan. This division will lead rate studies for the stormwater utility as well as the sewer utility. Lead preparation for NDPES Phase II implementation in 2024 across the engineering division and the streets/collections division. Support director team development of management and leadership training. Support the Planning and Community Development in housing solutions such as code updates, Cherry Street, and Evans Vista development. Support the engineering department in the update of engineering standards Support the Administration and Finance Departments in Financial Sustainability Support the Parks Strategy effort. Support the HR Department with training and skills development program. Support the City Hall Departments with implementation of City Hall improvements subject to funding. Support implementation of the Comprehensive Streets program, particularly associated with banked capacity projects. Support Planning and Community Development Department in Open Space Planning and Buildable Lands Inventory. Support Capital Projects Support implementation of the Water Supply Agreement projects and coordination. Port Townsend 2023 Fund Summary 2023 Budget Book - Page 52 of 102 Fleet Rental & Replacement Goal Statement: The City of Port Townsend Fleet division is a Public Works internal service function. The division focuses on repair and maintenance of the City’s fleet. The division also purchase replacement vehicles for those departments contributing to the replacement funds. A key goal of the division is to restore general fund replacement funding of vehicles. The Police Department, Community Services Department, and other administration departments currently do not pay for replacement. The division seeks to provide reliable internal service to sustain an aging fleet. Port Townsend 2023 Fund Summary 2023 Budget Book - Page 53 of 102 2023 Key Goal: Purchase of street sweeper, 10 CY dump truck, and a water distribution pickup. Subject to funding, purchase of hot mix asphalt repair equipment to allow the street division to transition from cold mix to hot mix street repair. 2023 Work Plan: Work with the Police Department and Parks Division to evaluate options for development of a sustainable funding program for vehicle replacement. Perform a study on the city’s fleet to recommend greenhouse gas emission reduction. Information Technology (IT) Rental & Replacement Goal Statement: The City of Port Townsend Information Technology (IT) division is a Finance and Technology Services internal service function. The division focuses on the repair and maintenance of the City’s technology infrastructure. The City also replaces aging equipment across all City departments based on equipment age and functional needs. 2023 Key Goal: Support departments at all levels with technology needs through computer hardware, software programs and technology-related projects 2023 Work Plan: Improve IT infrastructure, robustness, and cybersecurity City Hall and Chamber technology upgrades Support the City’s preparedness for disasters, including a continuity of operations plan Port Townsend 2023 Fund Summary 2023 Budget Book - Page 54 of 102 Engineering Goal Statement: The City of Port Townsend engineering division is an enterprise fund within the Public Works Department. This means that the division bills other funds for every hour worked. As such, the revenues in the budget often are shown to exceed expenses indicating that there is more work than can be performed by the division staff. In actuality, the division struggles to cover costs and the fund balance is near zero making it challenging for the division to take on tasks unless there is billing authority granted from other funds. The underlying goal of the division is to provide technical support for management of existing assets and the development of new public infrastructure. Engineering is a key division providing support to Public Works administration. This support comes in the form of internal service to other departments such as GIS mapping, software support, development review, contracting, bidding, purchasing, code enforcement, planning for future infrastructure and technical support to operations, planning for future infrastructure. External services are also a key element of engineering’s responsibilities such as right of way management, permitting, franchise utility management, traffic analysis, and environmental compliance. Port Townsend 2023 Fund Summary 2023 Budget Book - Page 55 of 102 Design of capital projects makes up over half of the engineering division's work which includes design and development of new infrastructure as well as capital repairs replacements, grant procurement, and capital funding program management. 2023 Key Goals: Become fully staffed if not accomplished in 2022. Consider hiring an additional project engineering staff position subject to approval through a supplemental budget. Update GIS delivery application to replace outdated software. If staffing is available, delivery of capital projects Improved development review and infrastructure inspection in coordination with the Planning and Community Development Department. Subject to staffing, update of engineering standards and related codes. Continued development of a city-wide infrastructure extension plan for 2024 code updates. Move to a digital office and records management through training and use of digital resources in coordination with the public records officer. 2023 Work Plan: If staffing is available and subject to funding, support the parking plan development and implementation. Focus on construction projects including Discovery, 2022 banked capacity, and 2023 banked capacity with existing resources. If staffing is available, support of engineering studies and designs including rate studies, general sewer plan update, Subject to funding, buildable lands and open space support Support NPDES Phase II stormwater program Port Townsend 2023 Fund Summary 2023 Budget Book - Page 56 of 102 2020 2021 2022 2023 Increase/Decrease Actual Actual Budget Proposed 2023 Proposed vs 2022 Budget Beginning Fund Balance 25,474 25,590 22,231 22,231 Revenues Taxes - - - - Licenses & Permits - - - - Intergovernmental Services - - - - Charges for Goods & Services - - - - Fines & Penalties - - - - Miscellaneous Revenue 116 14 - - Other Increases - - - - Other Financing Sources (inc. Transfers In)72,492 22,631 - 50,000 Total Revenue 72,609 22,646 - 50,000 Expenditures Salaries & Wages & Benefits 72,492 26,004 - 50,000 Supplies - - - - Services - - - - Capital Outlays - - - - Debt Service - Principal - - - - Debt Service - Interest - - - - Other Financing Uses (inc. Transfers Out)- - - - Total Expenditure 72,492 26,004 - 50,000 Net Change in Fund Balance 116 (3,359) - - Ending Fund Balance 25,590 22,231 22,231 22,231 Sufficient to Meet Obligations MEETS POLICY City of Port Townsend UNEMPLOYMENT RESERVE FUND BUDGET SUMMARY Unemployment Internal Service Fund Port Townsend 2023 Fund Summary 2023 Budget Book - Page 57 of 102 LEOFF 1 2020 2021 2022 2023 Increase/Decrease Fiduciary Fund Actual Actual Budget Proposed 2023 Proposed vs 2022 Budget Beginning Fund Balance 258,871 277,705 294,571 302,244 Revenues Taxes - - - - Licenses & Permits - - - - Intergovernmental Services - - - - Charges for Goods & Services - - - - Fines & Penalties - - - - Miscellaneous Revenue 1,211 160 - - Other Increases - - - - Other Financing Sources (inc. Transfers In)34,235 34,235 34,235 34,235 0.0% Total Revenue 35,446 34,395 34,235 34,235 0.0% Expenditures Salaries & Wages & Benefits 1 15,388 16,189 25,202 25,202 0.0% Supplies 3 - - - - Services 4 1,224 1,340 1,360 1,346 -1.0% Capital Outlays 6 - - - - Debt Service - Principal 7 - - - - Debt Service - Interest 8 - - - - Other Financing Uses (inc. Transfers Out)0 - - - - Total Expenditure 16,612 17,529 26,562 26,548 -0.1% Net Change in Fund Balance 18,834 16,866 7,673 7,687 0.2% Ending Fund Balance 277,705 294,571 302,244 309,931 Sufficient to Meet Obligations MEETS POLICY City of Port Townsend FIREMEN'S PENSION FUND BUDGET SUMMARY Port Townsend 2023 Fund Summary 2023 Budget Book - Page 58 of 102 CITY OF PORT TOWNSEND, WASHINGTON STAFFING AND COMPENSATION SUMMARY The City of Port Townsend employs approximately 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. The Police Collective Bargaining Unit ratified a 2-year contract in July 2022. The new contract expires December 31, 2023. Negotiations for a new agreement will take place in 2023. Assuming some vacancies will continue in 2023, 15.0 full-time officers and 1.10 reserve/provisional officers were included in the budget and a vacancy factor considered. Recruiting and retaining officers continues to be a challenge for Port Townsend and nationally. The General Collective Bargaining Unit ratified a 3-year contract. The new contract expires December 31, 2024. With these collective bargaining agreements in place, wage rates for 2023 are contracted to increase 5.0% for all City staff. Due to current labor market conditions and higher than normal inflationary times, salary increases for staff are above average. All increases are included in the budget estimates for 2023. Changes to Council members’ compensation were considered by an independent Salary Commission during the fall of 2021. Council compensation had not been changed since 2007. Five commission members were appointed to determine whether and what changes were necessary to monthly salaries for these elected officials. The commissioners considered multiple points of data including cost of living changes during the period of 2007-2021, salaries for officials in comparable communities, time required to carry out the functions of the office, and salaries received by members of other governing boards in Jefferson County. Individual interviews with council members were conducted by the commission to better assess time commitment to the position. The commission’s binding decision on compensation was presented to the City Clerk on November 9, 2021. Based on the commission’s determination, compensation levels for 2022-3 are as follows: 2023 Budget Book - Page 59 of 102 Effective January 1, 2022 – the Mayor’s monthly salary will be $1,025. Effective January 1, 2022 – each Council member’s monthly salary will be $700. Salaries will be increased by $25-$50 per month every two years between now and 2028 when a subsequent Salary Commission consideration is statutorily required. The binding decision can be challenged by referendum within 30 days Medical insurance for Council members was determined to be separate from compensation by the 2021 Salary Commission. Staff and Council are researching the possibility of providing medical coverage for the first time. The budget as presented includes $50,000 to cover the costs if voted in by Council. Depending on the final decision made by Council, a budget supplemental may need to be brough forward in 2023 to cover any additional costs. The 2023 budget reflects a total of 100.7 full time equivalents (FTEs) excluding Council members. This is an increase after consecutive years of reduction (from 109.2 in 2018). The FTE count reflects an increase of 5.5 positions compared to the 2022 budgeted positions. Additions include: Temporary Long-Range Planner – 2-year temporary position funded by ARPA will help to support updates to the City’s Comprehensive Plan as well as assist with the delivery of code amendments to streamline processes Communications and Marketing Manager – this position will develop and implement a cohesive and coordinated communications strategy to support internal and external City communications and functions, helping to tell a compelling and nested set of narratives to build community trust and confidence in the City. The position will also manage critical contracts and relationships to maximize the positive benefit of tourism in our community. Deputy Police Chief – this position will handle the day-to-day operations of the Police department, including the supervision of patrol, traffic, investigations, drug enforcement, training. Crime prevention and the School Resource Program (SRO). The Deputy Police Chief will physically work in the field, key to improving department morale and reducing use of force incidents and citizen complaints. HR Assistant – provide administrative support to the Human Resources department allowing the Director of People and Performance as well as the HR Generalist to focus on high-impact strategic HR initiatives while continuing to support all staff. Behavioral Health Navigator (in-house, grant funded) –The Navigator assists police with the increasing number of calls for service for individuals with mental health and/or substance abuse disorders. The services provided by the Navigator help extend the police staff. Housing Grant Coordinator – this is a shared, grant funded position with local community partners. This role will be developed in 2023 to best fit the needs of the partners. 2023 Budget Book - Page 60 of 102 Seasonal Workers – Janitorial (1), Streets (2), and Parks (2) maintenance. Seasonal staff are typically hired between May and October and are budgeted at an equivalent to 0.50 FTE each. Seasonal staff support spring and summer clean- up efforts in parks, maintain streets right of ways as well as assist with weekend restroom and garbage collection. Despite these additions, City staffing is still not back to 2018 staffing levels. Service requests from our community often exceed our staff’s capacity to respond; setting service level expectations and matching the City’s ability to fund these service levels will be a key topic in discussions with the Financial Sustainability Task Force. Details on the assumptions used in preparation of the 2023 salary and benefit budget, including details regarding the proposed staff reductions, are provided below. 2023 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 2023 budget was prepared by reviewing each employee’s position and seniority as compared to the wage charts, as well as including a rate increase of 5.00%, which is higher than rates normally included in the City’s long-range forecast. 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 4.0% in 2023. 2023 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 Police Collective Bargaining Unit ratified a 2-year contract in July 2022. The new contract expires December 31, 2023. 2023 Budget assumptions are forecasted with an hourly rate increase of 5.0%, which is higher than rates normally included in the City’s long-range forecast. Full-time employees receive a full benefit package that includes health, life, dental and retirement benefits. Employees contribute 10% of the medical benefit costs for themselves and any covered dependents. Teamster benefit rates are budgeted to increase 4.0% in 2023. 2023 Budget Book - Page 61 of 102 2023 Budget Assumptions for Non-represented employees The non-represented employee group is made up of management and professional level staff, part-time 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 4.5% which is partially offset by a 2.0% discount for WellCity designation. Employees may choose from two dental plans. The dental premiums are budgeted for no increases in 2023. 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. Due to today’s competitive recruitment and retention environment, a comprehensive review of both represented and non-represented compensation is being conducted in Fall 2022 with results to follow in early 2023. Depending on the results of the compensation study, the salary schedules may require adjustments. Any adjustments will be brought forward in 2023 budget supplemental The 2023 budget includes a wage adjustment for non-represented employees of 5.0% consistent with bargaining unit staff. Minimum Wage - For 2023, the minimum wage will increase $1.25 or 8.6% to $15.74 per hour. This increase impacts library and seasonal wage rates. Additionally, the increase begins to impact higher level position through wage compression. Wage compression occurs when pay adjustments regardless of experience, skills or seniority increase the base wage and bring those wages closer to the wages of more senior, experienced, skilled positions. The Director of People & Performance will continue to monitor the impact of minimum wage adjustments on all City positions. Recruiting Staff, Succession Planning and Best Practices The City continues to strive to foster a healthy City organization through investing in leadership development and training and adopting and implementing best employment practices. In 2021, the City Manager restructured the Human Resources Department by hiring a Director of People & Performance. This position reports directly to the City Manager and is a key member of the City’s leadership team. This position is supported by a full time Human Resource Specialist/Generalist. Additionally, in 2023, a full time Human Resource Assistant will be recruited to support this effort. The Director will focus on recruitment, retention, and development of City staff. Development of career pathing and City-wide training opportunities for growth will enhance the City’s ability to retain valued employees and set standards for a high-performance culture. The 2023 budget adds 2023 Budget Book - Page 62 of 102 resources for staff training and education that were significantly reduced during the pandemic. A total of 100.7 positions are included in the budget for 2023, not including volunteer hours or accrued leave payouts. Volunteer hours amount to approximately 3.36 FTEs and assist with police operations, library operations, and parks maintenance. A chart below shows the trend by department of authorized staffing over the last five years: 2023 Budget Book - Page 63 of 102 Elected Officials Classification Minimum Maximum Positions Mayor 12,300.00$ 12,300.00$ 1.00 Councilmembers 8,400.00$ 8,400.00$ 6.00 Non Represented Employees Classification Minimum Maximum Positions City Manager 138,338$ 198,762$ 1.00 Public Works Director 133,474$ 163,342$ 1.00 City Attorney 130,896$ 157,075$ 1.00 Chief of Police 121,079$ 154,289$ 1.00 Director of Finance & Technology Services 117,806$ 150,531$ 1.00 Planning & Community Development Director 117,806$ 143,985$ 1.00 Parks & Recreation Strategic Director 117,806$ 143,985$ 1.00 Deputy Police Chief 107,021$ 130,431$ 1.00 Deputy Public Works Director/City Engineer 107,021$ 130,431$ 1.00 Director of People & Performance 107,021$ 130,431$ 1.00 Parks, Recreation & Community Services Director 107,021$ 130,431$ 0.00 Assistant City Engineer II 98,221$ 123,203$ 0.00 Assistant City Engineer I 94,899$ 119,037$ 0.00 Library Director 94,899$ 117,806$ 1.00 Human Resources Manager 91,876$ 127,256$ 0.00 Prosecuting Attorney/Assistant City Attorney 91,113$ 112,032$ 0.00 Planning Manager 91,114$ 112,032$ 1.00 Building Official 89,991$ 107,988$ 1.00 Parks & Facilities Manager 89,991$ 107,988$ 1.00 Public Works Operations Manager - WW/Bio 89,991$ 107,988$ 1.00 Public Works Operations Manager - Water Resources 89,991$ 107,988$ 1.00 Public Works Operations Manager - Streets/Sewer/Stormwater 89,991$ 107,988$ 1.00 Civil Engineer II 89,991$ 107,988$ 1.00 City Clerk 86,980$ 112,981$ 1.00 Public Records Officer 86,980$ 112,981$ 1.00 Operations Manager - Parks, Recreation & Facilities 85,082$ 117,806$ 0.00 Finance Manager 87,691$ 122,109$ 1.00 Accounting Manager 87,691$ 122,109$ 1.00 Civil Engineer III 83,101$ 114,610$ 1.00 Senior Planner 81,994$ 104,808$ 1.00 Finance & Budget Analyst 81,994$ 104,808$ 0.00 Project Manager 81,994$ 104,808$ 0.00 Library Manager - Public and Technical Services 71,856$ 84,589$ 1.00 Library Manager - Youth Services 71,856$ 84,589$ 1.00 Civil Engineer EIT 67,152$ 86,797$ 1.00 Deputy City Clerk 64,194$ 84,973$ 0.00 Executive Assistant to City Manager 64,194$ 84,973$ 0.00 Human Resources Specialist or Generalist 64,194$ 84,973$ 1.00 Legal Assistant/Deputy Clerk 64,194$ 84,973$ 1.00 Legal Assistant 64,194$ 84,973$ 0.00 Payroll and Benefits Administrator 64,194$ 84,973$ 0.00 Executive Assistant to Chief of Police 60,628$ 80,298$ 0.00 Hourly Part-Time Positions Library Associate 22.71$ 26.76$ 0.50 Library Assistant 17.12$ 20.19$ 3.51 Library Assistant Substitute -$ 0.54 Library Courier, Library Page 15.74$ 18.99$ 1.30 Reserve and Seasonal Positions ** Seasonals not included in Total FTE count CITY OF PORT TOWNSEND NON-BARGAINING EMPLOYEE POSITION CLASSIFICATION SALARY SCHEDULE BUDGET 2023 2023 Budget Book - Page 64 of 102 Reserve Police Officers, commissioned 37.79$ 1.00 Reserve Police Officers, noncommissioned 25.00$ 0.35 Seasonal Workers 15.74$ 18.99$ 2.50 Total Non-Represented Employees 36.20 Classification Minimum Maximum Positions Temporary Long Range Planner 1.00 Communications/Marketing Manager 1.00 Human Resources Assistant 1.00 Housing Grants Coordinator 0.50 Navigator 1.00 Total Unclassified Employees 4.50 Union/Represented Employees Classification Minimum/hr Maximum/hr **Positions IT Network Administrator 43.85$ 49.77$ 1.00 Accountant 37.81$ 42.90$ 0.00 Associate Planner 36.49$ 44.14$ 0.00 Crew Chief 35.79$ 40.66$ 1.00 GIS Coordinator 35.13$ 39.94$ 1.00 IT Technical Support 35.13$ 39.94$ 0.00 Building Inspector 34.30$ 38.97$ 1.00 Code Compliance Officer 34.30$ 38.97$ 1.00 Public Works Inspector 34.30$ 38.97$ 1.00 Crew Chief Apprentice 33.30$ 37.82$ 1.00 Lead Equipment Operator 33.30$ 37.82$ 4.00 Lead Operator 33.30$ 37.82$ 2.00 Police Records Lead 33.30$ 37.82$ 1.00 Assistant Planner 32.75$ 37.19$ 0.00 Finance Specialist 32.75$ 37.19$ 1.00 Land Use Specialist 32.75$ 37.19$ 1.00 Project Accounting Specialist 32.75$ 37.19$ 1.00 Purchasing/Contracts Specialist 32.75$ 37.19$ 0.00 Mechanic 31.79$ 36.12$ 0.00 Equipment Operator 31.09$ 35.18$ 12.00 Finance Tech III 28.04$ 31.83$ 1.00 Police Clerk 28.04$ 31.83$ 1.00 Public Works/Engineering Support Specialist III 28.04$ 31.83$ 0.00 Parks, Rec & Community Services Admin Support Spec 26.03$ 29.47$ 0.00 Public Experience Liaison 26.03$ 29.47$ 3.00 Community Services Officer 25.56$ 29.23$ 1.00 Finance Tech II 25.56$ 29.23$ 1.00 Maintenance Worker 25.56$ 29.23$ 7.00 Permit Tech 25.56$ 29.23$ 2.00 Public Works/Engineering Support Specialist II 25.56$ 29.23$ 0.00 Administrative Assistant 24.72$ 28.08$ 0.00 Public Works Administrative Assistant 25.77$ 29.13$ 0.00 Police Officer 37.79$ 43.37$ 12.00 Sergeant 48.58$ 53.14$ 3.00 Total Union/Represented Employees ** max pay does not include longevity or other premiums as may be applicable 60.00 TOTAL CITY POSITIONS (Excluding Elected Officials, Seasonals & Reserve Officers)100.70 BUDGET 2023 CITY OF PORT TOWNSEND UNION/REPRESENTED EMPLOYEE POSITION CLASSIFICATION SALARY SCHEDULE CITY OF PORT TOWNSEND UNCLASSIFIED EMPLOYEE POSITION CLASSIFICATION SALARY SCHEDULE BUDGET 2023 to be determined to be determined to be determined to be determined to be determined 2023 Budget Book - Page 65 of 102 2023 Budget Book - Page 66 of 102 CITY OF PORT TOWNSEND, WASHINGTON 2023 CAPITAL PLAN The City developed a Capital Facilities Plan (CFP) in 2022 to serve as a six-year capital improvement plan which is updated at least once every 2 years consistent with the requirements of the Growth Management Act. The CFP was adopted in 2022 for the years 2023 – 2028. This plan includes both funded and unfunded capital projects that add new infrastructure to the City and those that replace and improve aging City infrastructure. The most significant funded capital projects planned in 2023 or those already underway are described below with project budget summaries and project pages to follow: Transportation Projects The City is currently developing a Comprehensive Streets Program to prioritize and develop strategies to address the back-log of street maintenance needs. This will continue an aggressive grant program to help fund transportation improvements. The following two improvement projects are currently underway. Discovery Road Bikeway, Roadway and Sidewalk Project includes the planning, design and construction of a sidewalk on both sides of the street, a bicycle pathway on the south side of Discovery Road from Rainier Street to McClellan Street, along with stormwater improvements and reconstruction of the existing failed pavement. The project is funded by a Federal Surface Transportation Program (STP) grant, a State grant through WSDOT’s Pedestrian & Bicycle Safety Program, Federal Surface Transportation Block Grant funds, a State of Washington Transportation Improvement Board grant, and City matching funds. The City went through a public stakeholder process for establishing the project design features in 2021. Construction is planned in 2023. The first quarter supplement for 2023 will roll previously budgeted funds forward into 2023. The City secured STBG funds in 2021 to support the WSDOT Kearny Street Roundabout Project. These funds are intended to make improvements to City streets that abut the WSDOT project and enhance pedestrian and bicycle safety with additional project features. A portion of this project will be rolled forward into the 2023 budget in the first quarter supplemental. Banked Capacity Projects The City Council approved increasing the property tax levy rate to fund approximately $600,000 of parks and streets capital needs. Based on fiscal sustainability principles, the backlog of maintenance challenges, and the goal of making improvements that met a number of key criteria outlined below, the following projects were prioritized. These projects were initiated in 2022 and expect to be completed by 2023. Some of these 2023 Budget Book - Page 67 of 102 projects will be rolled forward into the 2023 budget as part of the first quarter supplemental.. 2022 Banked Capacity Projects Banked capacity projects for 2023 focus on street repairs with a small amount of funding supporting Kah Tai Nature Park. 2023 banked capacity projects are included in the 2023 budget as follows: • RCO grant match = $40,000 • Residential street repair projects = $800,000 • Contingency = $68,000 Total = $908,000 Stormwater Projects The stormwater capital improvements for 2023 include support for banked capacity projects associated with road work. One of the key elements of road repair is to address drainage problems ahead of the street work. Some capital funds were budgeted in 2022 and will be rolled forward to 2023 in the first quarter supplemental. The City also budgets a small amount of stormwater work associated with repair and maintenance. 2023 Budget Book - Page 68 of 102 Wastewater Projects Several projects are planned in 2023 to improve the City’s wastewater system. These projects include General Sewer Plan update and Nutrient Study. These two projects address the future of the wastewater system in order to prioritize investment in the system. This includes analyzing what upgrades are needed at the Wastewater Treatment Plant to address the forthcoming required reduction of nutrient discharges. These projects were initiated in 2022 and will be completed in 2023. The 2023 budget will need to be amended to account for project roll forward in the 1st quarter supplemental. The City is working through the permitting phase of replacing the Wastewater Treatment Plant outfall. Construction is anticipated in 2024. The wastewater fund will contribute to capital improvements associated with banked capacity projects to ensure sewer lines are extended and repaired ahead of road construction. Water Projects The City will be working on the following water system improvements in 2022. Installation of water meters on the Olympic Gravity Water System to support the new Mill agreement. A portion of this work is completed. The remainder of the work will be budgeted in 2023 in the 1st quarter supplemental. The east dam of Lords Lake will be upgraded to address seismic stability concerns. In 2023, an engineering study of the dam will assess the scope of the work necessary. This project was budgeted in 2022 and will be rolled forwarded in the first quarter supplemental. This project is largely grant funded and the City is waiting for FEMA authorization. The 1 million gallon steel reservoir (standpipe) is in need of repainting. Design will occur in 2023. . Additional Olympic Gravity Water System projects are included in the 2023 budget including: o A pipeline condition assessment o Cathodic protection o Big Quilcene Main Valve Control building upgrades The City also budgets $200,000 annually to remove spaghetti lines and address other capital replacement. Facilities Projects The Port Townsend Library annex needs window replacement and rehabilitation of the restrooms. These projects are anticipated to be completed in 2023 and 2024. A portion of these funds will be rolled forward to 2023 as part of the 1st quarter supplemental. 2023 Budget Book - Page 69 of 102 Utilizing ARPA funds, the 2023 budget includes City Hall upgrades to be constructed in 2023. This work follows up on spacing planning and investments performed in 2022. Affordable Housing Project An affordable housing support project is underway utilizing State grant funds. These grant funds will allow the City to purchase property to be used for affordable and workforce housing as well as to expand the City’s utilities to ensure adequate service to support housing development. The 2023 budget includes funding from the County ARPA funds for site master planning and permitting. Economic Development Projects The City partnered with the Port of Port Townsend and the Jefferson County PUD to secure Jefferson County Public Infrastructure Funds for a project that achieves multiple objectives, primarily for safety and economic development. Approximately $1.6 million of Port, PUD, and grant funds will expand the Boat Haven Boat Yard and underground the transmission power lines. This project will impact the Flats District and poplar trees along Sims Way. The City is contributing $135,000 along with grant funds to replace the poplars and support the installation of a path along SR 20. 2022 Completed Projects The Gaines Street pump station project was completed in 2022. A number of other projects included much work in preparation for completion in 2023. 2023 Budget Book - Page 70 of 102 2023 Budget Project Status by Fund 2023 Project Budget General Government Pink House 100,000 Library Windows 100,000 Library Restrooms - Chetzemoka Kitchen Shelter 92,500 Kah Tai Restrooms 75,000 City Hall Upgrades Phase 3 400,000 Affordable Housing 500,000 Subtotals 1,267,500 Street Sims Way and Boatyard Expansion Project 135,000 Pacific & Spruce 72,881 9th St Sidewalk 212,500 ADA Lawrence St - Kearney St 426,400 2023 Banked Capacity Street Repair Projects 868,000 Discovery Road - Subtotals 1,714,781 Water Discovery Road - Pacific & Spruce - 1 MG Standpipe Coating 140,000 General Water Capital Replacement, Improvements, and Repairs 200,000 OGWS Master Meters 125,000 Lords Lake 75,000 Big Quilcene Main Control Valve Building Replacement 125,000 Pipeline Condition Assessment - 1928 OGWS Pipeline 150,000 Cathodic Protection - 1928 OGWS Pipeline 154,000 Subtotals 969,000 Sewer Discovery Road - Pacific & Spruce - 2023 General Sewer Capital Replacement, Improvements, and Repairs 200,000 Sewer Outfall 100,000 General Sewer Plan 50,000 Wastewater Nutrient 15,000 Affordable Housing 40,000 Subtotals 405,000 Storm General Stormwater Capital Replacement, Improvements, and Repairs 50,000 ADA Lawrence St - Discovery Road - Pacific & Spruce - 2023 Banked Capacity Street Repair Projects 251,970 Subtotals 301,970 TOTALS 4,658,251 2023 Budget Book - Page 71 of 102 Pink House Project Description Revenue Project Budget Prior Year Revenues 2022 Actual 2022 Est. Actual Revenues 2022 Budget 2023 Budget Future Budget Total Revenues Actuals To Date ARPA 305,000$ 5,000 100,000 205,000 305,000 - - - - Total Revenue 305,000$ - - - 100,000 205,000 305,000 - Expense Prior Year Expenditures 2022 Actual 2022 Est. Actual Expenditures 2022 Budget 2023 Budget Future Budget Total Expenditures Actuals to Date Design Engineering / Permitting Terrapin Contract $12,000 35,000$ 780 5,000 35,000 35,000 - - - - - - - - Subtotal 35,000$ - - Construction General Government 250,000$ 65,000 185,000 250,000 - - - - - - - - - Subtotal 250,000$ - - Project Management General Government 20,000$ 20,000 20,000 - - - - - - - - - Subtotal 20,000$ - - Project Contingency - - -$ - - Total Expense 305,000$ - - 5,000 - 100,000 205,000 305,000 - Evaluate and make repairs to exterior of the Charles Pink House. The siding and trim are in disrepair. 2023 Budget Book - Page 72 of 102 Library Windows Project Description Revenue Project Budget Prior Year Revenues 2022 Actuals 2022 Est. Actual Revenues 2022 Budget 2023 Budget Future Budget Total Revenues Bond Fund 62,209$ - 500 62,209 62,209 Real Estate Excise Tax 7,791$ - 7,791 7,791 Federal Grant (ARPA)100,000$ 100,000 100,000 - - - - Total Revenue 170,000$ - - 500 70,000 100,000 170,000 Expense Prior Year Expenditures 2022 Actuals 2022 Est. Actual Expenditures 2022 Budget 2023 Budget Future Budget Total Expenditures Design Engineering / Permitting - - - - - Subtotal -$ - Construction General Government 167,500$ - 67,500 100,000 167,500 - - - - Subtotal 167,500$ - Project Management General Government 2,500$ 197 500 2,500 2,500 - - - - Subtotal 2,500$ - Project Contingency - -$ - Total Expense 170,000$ - 197 500 70,000 100,000 170,000 The 1989 additon to the Port Townsend Library has windows with frames that are beginning to rot due to moisture intrusion and window failure. This project replaces the windows for this portion of the library. The source of funds for this project are bond revenues as well as American Rescure Plan Act funds. 2023 Budget Book - Page 73 of 102 Library Restrooms Project Description Revenue Project Budget Prior Year Revenues 2022 Est. Actual Revenues 2022 Budget 2023 Budget Future Budget Total Revenues Actuals To Date General Government or Federal Funds 33,000$ - 33,000 33,000 - - - - - Total Revenue 33,000$ - - 33,000 - 33,000 - Expense Prior Year Expenditures 2022 est. Actual Expenditures 2022 Budget 2023 Budget Future Budget Total Expenditures Actuals to Date Design Engineering / Permitting - - - - - - - - - - Subtotal -$ - - Construction - General Government 30,500$ 30,500 30,500 - - - - - - - - - Subtotal 30,500$ - - Project Management General Government 2,500$ 2,500 2,500 - - - - - - - - - Subtotal 2,500$ - - Project Contingency - - -$ - - Total Expense 33,000$ - - 33,000 - - 33,000 - The library restrooms in the 1989 addition to the Library are in need of rehabilitating. The project includes: demolishing and replacing all fixtures, toilet partitions, all toilet accessories and finishes. Also included is: painting, tile removal, and rot repair in Men’s and Women’s restrooms. The source of funds for this project are bond revenue as well as American Rescue Plan Act funds. 2023 Budget Book - Page 74 of 102 Chetzemoka Kitchen Shelter Project Description Revenue Project Budget Prior Year Revenues 2022 Est. Actual Revenues 2022 Budget 2023 Budget Future Budget Total Revenues Actuals To Date Banked Capacity 50,000$ - 7,500 42,500 50,000 - Donations 50,000$ 50,000 50,000 - - - - - - Total Revenue 100,000$ - - 7,500 92,500 100,000 - Expense Prior Year Expenditures 2022 Est. Expenditures 2022 Budget 2023 Budget Future Budget Total Expenditures Actuals to Date Design Engineering / Permitting - - - - - - - - - - Subtotal -$ - - Construction General Government 92,500$ 92,500 92,500 - - - - - - - - - Subtotal 92,500$ - - Project Management General Government 7,500$ 7,500 7,500 - - - - - - - - - Subtotal 7,500$ - - Project Contingency - - -$ - - Total Expense 100,000$ - - 7,500 92,500 100,000 - The Chetzemoka Kitchen Shelter is currently closed due to failing structural elements. The roof was rebuilt in recent years; however, the remaining elements of this historic structure need to be rehabilitated. This project uses a combination of banked capacity and a donation for Chetzemoka Park as revenue to fund the project. 2023 Budget Book - Page 75 of 102 Kah Tai Restrooms Project Description Revenue Project Budget Prior Year Revenues 2023 Budget 2024 Budget Future Budget Total Revenues Actuals To Date 2023 Banked Capacity 40,000$ 40,000 40,000 - - - - ARPA 35,000$ 35,000 35,000 - - Total Revenue 75,000$ - 75,000 - 75,000 - Expense Prior Year Expenditures 2023 Budget 2024 Budget Future Budget Total Expenditures Actuals to Date Design Engineering / Permitting - - General Government 10,000$ 10,000 10,000 - - - - - - - Subtotal 10,000$ - - Construction General Government 60,000$ 60,000 60,000 - - - - - - - - - Subtotal 60,000$ - - Project Management General Government 5,000$ 5,000 5,000 - - - - - - - - - Subtotal 5,000$ - - Project Contingency - - -$ - - Total Expense 75,000$ - 75,000 - 75,000 - Staff submitted for a RCO grant to rehabilitate Kah Tai Restrooms to bring the City into compliance with the original land water conservation grant for the park. 2023 Budget Book - Page 76 of 102 Affordable Housing Project Description Revenue Prior Year Revenues 2022 Actuals 2022 Est. Actual Revenues 2022 Budget 2023 Budget Future Budget Total Revenues Actuals To Date Federal Grant (Anticipated)2,500,000$ 800,000 2,500,000 2,500,000 - State Utility Grant 1,700,000$ 26,500 1,673,500 1,700,000 - State Affordable Housing Grant 1,372,000$ 1,355,476 16,523.71 1,372,000 1,372,000 City Funds 43,500$ 30,000.00 13,500 43,500 30,000 Jefferson County ARPA 500,000$ 500,000 500,000 - - - Total Revenue 6,115,500$ 1,355,476 46,523.71 800,000 540,000 4,173,500 6,115,500 1,402,000 Expense Prior Year Expenditures 2022 Actuals 2022 Est. Actual Expenditures 2022 Budget 2023 Budget Future Budget Total Expenditures Actuals to Date Land Purchase / Permitting Land Purchase 1,372,000$ 1,355,476 16,523.71 1,372,000 1,355,476 Planning and Permitting 500,000$ 500,000 500,000 - Cultural resources General Government 43,500$ 30,973.20 43,500.00 43,500 30,973 - - - - Subtotal 1,915,500$ - - Construction - - - - - - Sewer Lift Station and Forcemain Sewer 3,150,000$ 700,000 2,450,000 3,150,000 - - - Subtotal 3,150,000$ - - Project Management/Design Engineering General Government 2,500$ 1,661.93 2,500.00 2,500 1,662 - - - - Sewer 1,047,500$ 133.72 500.00 100,000 40,000 1,007,000 1,047,500 134 - - Subtotal 1,050,000$ - - Project Contingency - - -$ - - Total Expense 6,115,500$ 1,355,476 32,769 63,023.71 800,000 540,000 3,457,000 6,115,500 1,388,245 The City received two grants for affordable housing in 2021. An additional Federal Grant is anticipated in late 2021 as well. The funding is directed to create land available for affordable housing through acquisition of property and the construction of sewer infrastructure to support full develompent of the land. An interfund loan will provide cashflow until reimbursement from the State is received for the acquisition of property. 2023 Budget Book - Page 77 of 102 City Hall Upgrades Phase 3 Project Description Revenue Project Budget Prior Year Revenues 2023 Budget 2024 Budget Future Budget Total Revenues Actuals To Date ARPA 400,000$ 400,000 400,000 - - - - - - - Total Revenue 400,000$ - 400,000 - 400,000 - Expense Prior Year Expenditures 2023 Budget 2024 Budget Future Budget Total Expenditures Actuals to Date Design Engineering / Permitting - - - - - - - - - - Subtotal -$ - - Construction General Government 350,000$ 350,000 350,000 - - - - - - - - - Subtotal 350,000$ - - Project Management General Government 50,000$ 50,000 50,000 - - - - - - - - - Subtotal 50,000$ - - Project Contingency - - -$ - - Total Expense 400,000$ - 400,000 - 400,000 - City Hall underwent a remodel in 2007 and left many parts of the project incomplete. In 2021 a front counter was added to the lobby. After space planning in 2022, a continued phased approach to upgrading the City Hall office spaces on floors 2R and 3 were recommended. These floors were never completed in the earlier remodels of City Hall. The work proposed includes sound control, HVAC, carpet replacement, furniture, and conference room development. 2023 Budget Book - Page 78 of 102 Project Description Revenue Project Budget 2022 Actuals 2022 Est. Actual Revenues 2022 Budget 2023 Budget Future Budget Total Revenues Actuals To Date - ARPA 50,000$ 2,000 50,000 50,000 - In Kind Match - North Side - $100,000 - - PIF 185,000$ 30,000 50,000 135,000 - 185,000 - - - Total Revenue 235,000$ - 32,000 100,000 135,000 - 235,000 - Expense 2022 Actuals 2022 Est. Actual Expenditures 2022 Budget 2023 Budget Future Budget Total Expenditures Actuals to Date Design Engineering / Permitting Design Consultant - Port 30,000$ 30,000 30,000 30,000 - - - - - - - - - Subtotal 30,000$ - - Construction Construction Contract 190,000$ 100,000 90,000 190,000 - In Kind Match - North Side $100,000 - - - - - - - - Subtotal 190,000$ - - Project Management Engineering Administration - - 15,000$ 1,376 2,000 15,000 15,000 1,376 - - - - - - Subtotal 15,000$ - - Project Contingency - - -$ - - - Total Expense 235,000$ 1,376 32,000 100,000 135,000 - 235,000 1,376 The Sims Way and Boatyard Expansion project was approved by the City Council, Port of Port Townsend, and Jefferson County PUD on 9/12/22. The construction of the south side of the project will be led by the Port with the City doing work overtime on the north side. The project involves removal of the existing Poplar trees, expanding the boatyard, and planting new trees on the south side. The project involves selective removal over time on the Kah Tai side by the City 2023 Budget Book - Page 79 of 102 Pacific & Spruce Project Description Revenue Project Budget 2022 Actuals 2022 Est. Actual Revenues 2022 Budget 2023 Budget Future Budget Total Revenues Actuals To Date Banked Capacity 87,881$ 5,000 15,000 72,881 87,881 - Water 75,000$ 5,000 75,000 - 75,000 - Sewer 60,000$ 5,000 60,000 - 60,000 - Stormwater 25,000$ 5,000 25,000 - 25,000 - Total Revenue 247,881$ - 20,000 175,000 72,881 247,881 - Expense 2022 Actuals 2022 Est. Actual Expenditures 2022 Budget 2023 Budget Future Budget Total Expenditures Actuals to Date Design Engineering / Permitting - - - - - - - - - - Subtotal -$ - - Construction - - Street 72,881$ 7,560 72,881 80,441 7,560 Water 60,000$ 60,000 - 60,000 - Sewer 49,000$ 49,000 - 49,000 - Storm 19,000$ 19,000 - 19,000 - Subtotal 200,881$ 128,000 72,881 200,881 - Project Management General Government - - Street 15,000$ 1,268 5,000 15,000 - 16,268 1,268 Water 15,000$ 5,000 15,000 - 15,000 - Sewer 11,000$ 5,000 11,000 - 11,000 - Storm 6,000$ 5,000 6,000 - 6,000 - Subtotal 47,000$ - - Project Contingency - - -$ 20,000 47,000 - - 47,000 Total Expense 247,881$ 8,828 40,000 175,000 72,881 247,881 8,828 Pacific Street is currently a gravel street. The street also is part of the Valley Trail leading from Kah Tai to Fort Worden. This project includes the construction of a 16’ wide asphalt shared-use street on Pacific Avenue between Tremont Street and Cedar Street. This will connect to and pave the Spruce Street trail easement between Cedar Street and Center Street. Banked capcaity funds make this project possible. Water, Sewer, and Stormwater work will also be performed prior to construction of the street improvements. 2023 Budget Book - Page 80 of 102 9th St Sidewalk Project Description Revenue Project Budget 2022 Actuals 2022 Est. Actual Revenues 2022 Budget 2023 Budget Future Budget Total Revenues Actuals To Date Banked Capacity 227,500$ 15,000 35,000 212,500 227,500 - - - - - - - - - - Total Revenue 227,500$ - 15,000 35,000 212,500 - 227,500 - Expense 2022 Actuals 2022 Est. Actual Expenditures 2022 Budget 2023 Budget Future Budget Total Expenditures Actuals to Date Design Engineering / Permitting - - - - - - - - - - Subtotal -$ - - Construction - - Street 182,500$ 8,325 30,000 182,500 182,500 8,325 - - - - - - Subtotal 182,500$ - - Project Management - - Street 45,000$ 584 15,000 5,000 30,000 45,000 584 - - - - - - Subtotal 45,000$ - - Project Contingency - - -$ - - Total Expense 227,500$ 8,909 15,000 35,000 212,500 227,500 8,909 This project constructs a 6’ wide sidewalk on 9th Street between McPherson Street and the recently finished Complete Streets sidewalk which ends at Hancock Street and connects to Sheridan Street. This project will connect the business park to Sheridan serving pedestrians in the neighborhood with a continuous sidewalk. Banked Capacity funding makes this project possible. 2023 Budget Book - Page 81 of 102 ADA Lawrence St Project Description Revenue Project Budget 2022 Actuals 2022 Est. Actual Revenues 2022 Budget 2023 Budget Future Budget Total Revenues Actuals To Date - Banked Capacity 60,000$ 5,000 60,000 5,000 - - - - - - - Storm 15,000$ 15,000 - - Total Revenue 75,000$ - 5,000 75,000 - 5,000 - Expense 2022 Actuals 2022 Est. Actual Expenditures 2022 Budget 2023 Budget Future Budget Total Expenditures Actuals to Date Design Engineering / Permitting - - - - - - - - - - Subtotal -$ - - Construction - - Street 38,000$ 38,000 38,000 - - - - - Storm 12,000$ 12,000 12,000 - Subtotal 50,000$ - - Project Management - - Street 22,000$ 800 5,000 22,000 22,000 800 - - Sewer - - Storm 3,000$ - - Subtotal 25,000$ 3,000 3,000 - Project Contingency - - -$ - - Total Expense 75,000$ 800 5,000 75,000 - 75,000 800 The Lawrence American Disabilites Act project provides for improved accessibility to the existing sidewalk network. This project is a high priority for Disability Awareness Starts Here and the City given the intensity of pedestrian activitng in the center of Uptown and proximity to Farmers Market. This project is made possible with revenues from banked capacity. 2023 Budget Book - Page 82 of 102 Kearney St Project Description Revenue Project Budget Prior Year Revenues 2022 Actuals 2022 Est. Actual Revenues 2022 Budget 2023 Budget Future Budget Total Revenues Federal Grant Funds (STBG)476,900$ 74,390 108,125 368,775 476,900 Real Estate Excise Tax 74,500$ 11,610 16,875 57,625 74,500 - - - - Total Revenue 551,400$ - 86,000 125,000 426,400 551,400 Expense Prior Year Expenditures 2022 Actuals 2022 Est. Actual Expenditures 2022 Budget 2023 Budget Future Budget Total Expenditures Design Engineering / Permitting - Street 86,000$ 81,000 86,000 - 86,000 - - - Subtotal 86,000$ - Construction - Street 465,400$ 14,000 424,400 438,400 - - - Subtotal 465,400$ - Project Management - Street -$ 1,528 5,000 25,000 2,000 27,000 - - - Subtotal -$ - Project Contingency - - Total Expense 551,400$ - 86,000 125,000 426,400 551,400 Washington State Department Of Transportation is replacing signals at Mill Road/SR20 and Kearney/SR20 with compact roundabouts at each location. The City secured Federal Surface Transportation Block Grant funds through a competive process adminstered by Jefferson County. The funds will be used to enhance the WSDOT project with improved pedestrian and bike facilities as well as work on the roundabout approaches. The project was approved by the City Council on August 16, 2021. 2023 Budget Book - Page 83 of 102 2023 Banked Capacity Street Repair Projects Project Description Revenue Project Budget 2022 Actuals 2022 Est. Actual Revenues 2023 Budget Future Budget Total Revenues Banked Capacity 868,000$ 868,000 868,000 Water -$ - Sewer -$ - Stormwater 251,970$ 251,970 251,970 - Total Revenue 1,119,970$ - - 1,119,970 1,119,970 Expense 2022 Actuals 2022 Est. Actual Expenditures 2023 Budget Future Budget Total Expenditures Design Engineering / Permitting - Street 130,200$ 130,200 130,200 Storm 62,993$ 62,993 62,993 - - Subtotal 193,193$ -$ 193,193$ -$ 193,193 Construction - Street 694,400$ 694,400 694,400 Water -$ - - Sewer -$ - - Storm 188,977$ 188,977 188,977 Subtotal 883,377$ 883,377 883,377 Project Management - - Street 43,400$ - - 43,400 43,400 Water -$ - - Sewer -$ - - Storm -$ - - Subtotal 43,400$ - Project Contingency - -$ 43,400 - 43,400 Total Expense 1,119,970$ - 1,119,970 1,119,970 The City proposes to invest up to 868,000 of banked capacity (property tax) into repair of streets. This project will include a number of stormwater management improvements prior to applying repair treatment to the street. 2023 Budget Book - Page 84 of 102 Discovery Road Project Description Revenue Project Budget Prior Year Revenues 2022 Actuals 2022 Est. Actual Revenues 2022 Budget 2023 Budget Future Budget Total Revenues Actuals To Date Transportation Improvement Board - State Grant (UAP)2,629,618$ 28,211 281,396 2,551,133 50,274 2,629,618 28,211 Washington State Department Of Transportation 1,442,082$ - 37,339 1,442,082 1,442,082 - Federal Grant Funds STP 621,515$ 265,292 303,468 356,223 159,578 621,515 568,759 Local - Street Funds - Bond 270,000$ 270,000 (123,831) 270,000 270,000 Water 240,000$ 776 49,224 180,000 180,000 776 Sewer 115,000$ - 20,000 180,000 180,000 - Storm 250,000$ - 250,000 250,000 - Total Revenue 5,568,215$ 564,278 620,352 4,762,793 50,274 - 5,573,215 867,746 Expense Prior Year Expenditures 2022 Actuals 2022 Est. Actual Expenditures 2022 Budget 2023 Budget Future Budget Total Expenditures Actuals to Date Design Engineering / Permitting - - Street 755,854$ 339,058 287,592 416,796 339,058 626,649 Water 34,216$ 34,216 - - Sewer 13,217$ 13,217 - - - - Subtotal 803,287$ - - Construction - - Street 3,322,829$ - 4,030,719 4,030,719 - Water 190,937$ - 150,000 150,000 - Sewer 92,877$ - 160,000 160,000 - Storm 250,000$ - 230,000 230,000 - Subtotal 3,856,643$ - - Project Management - - Street 197,810$ 259,856 54,603 (123,831) 126,867 386,723 314,459 Water 12,833$ 776 1,649 30,000 30,776 2,425 Sewer 6,242$ 1,523 20,000 20,000 1,523 Storm -$ 98 20,000 20,000 98 Subtotal 216,885$ - - Project Contingency - - 691,400$ - - Total Expense 5,568,215$ 599,689 340,398 4,767,586 - - 5,367,275 945,154 The Discovery Road Project includes constructing a bicycle way, sidewalks, and curb ramps between the roundabout at Rainier Street and McClellan Street near Salish Coast Elementary School. The project will completely rebuild the failing pavement as well. The City received several grants to fund this large project. Discovery Road is an important arterial street connecting SR20 to Fort Worden. The City and stakeholders evaluated options for this project in the spring of 2021. City Council approved the concept design on May 17, 2021. Construction is anticipated in summer 2022. 2023 Budget Book - Page 85 of 102 Project Description Revenue Project Budget Prior Year Revenues 2022 Actual Revenues 2022 Est. Actual Revenues 2022 Budget 2023 Budget Future Budget Total Revenues - Water Rates 200,000$ 200,000 200,000 - Total Revenue 200,000$ - - - - 200,000 200,000 Expense Prior Year Expenditures 2022 Actual Expenditures 2022 Est. Actual Expenditures 2022 Budget 2023 Budget Future Budget Total Expenditures Design Engineering / Permitting - - - - - Subtotal -$ - Construction - Water 200,000$ 9,894 200,000 209,894 - - - Subtotal 200,000$ - Project Management 1,110 1,110 - - - - Subtotal -$ - Project Contingency - -$ - Total Expense 200,000$ - - 200,000 211,004 Miscelaneous capital repairs and replacment work comes up most years. The rate analysis includes $200,000 per year of miscelaneous and unforeseen capital improvements. These funds also support removal and replacment of several thousand feet of spaghetti lines (4" or smaller pipes) which are a sources of leaks and system service failures. The city has started replacing 20 year old water meters as well. 2023 Budget Book - Page 86 of 102 OGWS Master Meters Project Description Revenue Project Budget Actual 2022 2022 Est. Actual Revenues 2022 Budget 2023 Budget Future Budget Total Revenues Actuals To Date Water Operating 275,000$ 119,000 150,000 125,000 275,000 119,000 - - - - - - - - - - - Total Revenue 275,000$ - 119,000 150,000 125,000 275,000 119,000 Expense Actual 2022 2022 Est. Actual Expenditures 2022 Budget 2023 Budget Future Budget Total Expenditures Actuals to Date Design Engineering / Permitting - - - - RH2 Contract $44,000 Water 55,000$ 40,551 44,000 42,500 12,500 55,000 40,551 - - - - Subtotal 55,000$ Construction* - - - - Water 200,000$ 33,109 70,000 102,500 97,500 200,000 103,109 - - - - Subtotal 200,000$ - - Project Management - - - - Water 20,000$ 491 5,000 5,000 15,000 20,000 5,491 - - - - Subtotal 20,000$ - - Project Contingency - - -$ - - Total Expense 275,000$ 74,151 119,000 150,000 125,000 275,000 149,151 Accurate metering is necessary to ensure equitable water system cost sharing for the Olympic Gravity Water System operations and asset replacement.  Port Townsend Municipal and the Mill water consumption will be individually metered at the point of delivery, located at the intersection of Mill Road and South 8th Street. Engineering and design for the metering is underway in 2021 and installation of the meters will occur in March 2022 during the annual paper mill maintenance shutdown.  2023 Budget Book - Page 87 of 102 1 MG Standpipe Coating Project Description Revenue Project Budget Prior Year Revenues 2022 Actual Revenues 2022 Est. Actual Revenues 2022 Budget 2023 Budget Future Budget Total Revenues Water Operating 850,000$ - 150,000 140,000 710,000 850,000 - - - - - - Total Revenue 850,000$ - - - 150,000 140,000 850,000 Expense Prior Year Expenditures 2022 Actual Expenditures 2022 Est. Actual Expenditures 2022 Budget 2023 Budget Future Budget Total Expenditures Design Engineering / Permitting - - Water 100,000$ - 140,000 100,000 100,000 - - Subtotal 100,000$ - Construction - - Water 710,000$ - 710,000 710,000 - - Subtotal 710,000$ - Project Management - - 10,000 40,000 40,000 Water 40,000$ - - - Subtotal 40,000$ - Project Contingency - -$ - Total Expense 850,000$ - - - 150,000 140,000 710,000 850,000 The 1-million gallon steel standpipe needs periodic repainting to preserve the structure.  The tank has not been recoated since it was constructed in 1995.  Engineering and design for painting and corrosion protection is scheduled for 2022 and repainting in 2023.  The project will require taking the standpipe offline for approximately 2 months to sandblast and recoat the tank. 2023 Budget Book - Page 88 of 102 Big Quilcene Main Control Valve Building Replacement Project Description Revenue Project Budget Prior Year Revenues 2022 Est. Actual Revenues 2022 Budget 2023 Budget Future Budget Total Revenues Actuals To Date Water - Olympic Gravity Water System Fund 125,000$ 125,000 - 125,000 - - - - - - - - - - Total Revenue 125,000$ - - - 125,000 125,000 - Expense Prior Year Expenditures 2022 Est. Actual Expenditures 2022 Budget 2023 Budget Future Budget Total Expenditures Actuals to Date Design Engineering / Permitting - - Water 15,000$ 15,000 15,000 - - - - - - - Subtotal 15,000$ - - Construction* General Government - - - - Water 100,000$ 100,000 100,000 - - - Storm - - Subtotal 100,000$ - - Project Management - - - - Water 10,000$ 10,000 10,000 - - - - - Subtotal 10,000$ - - Project Contingency - - -$ - - Total Expense 125,000$ - - 125,000 - 125,000 - As part of the water supply agreement, a capital spending plan was developed to address system long term reliability. Investments in the diversions are anticipated in the long-term plan. The main control vavle buidling at the Big Quilcene Diversion has experienced significant rot and needs replacing at the request of the operating crew. 2023 Budget Book - Page 89 of 102 Pipeline Condition Assessment - 1928 OGWS Pipeline Project Description Revenue Project Budget Prior Year Revenues 2022 Est. Actual Revenues 2022 Budget 2023 Budget Future Budget Total Revenues Actuals To Date Water - Olympic Gravity Water System Fund 550,000$ 150,000 400,000 550,000 - - - - - - - - - - Total Revenue 550,000$ - - - 150,000 550,000 - Expense Prior Year Expenditures 2022 Est. Actual Expenditures 2022 Budget 2023 Budget Future Budget Total Expenditures Actuals to Date Design Engineering / Permitting - - Water 425,000$ 125,000 300,000 425,000 - - - - - - - Subtotal 425,000$ - - Construction* General Government - - - - Water - - - - Storm - - Subtotal -$ - - Project Management - - - - Water 125,000$ 25,000 100,000 125,000 - - - - - Subtotal 125,000$ - - Project Contingency - - -$ - - Total Expense 550,000$ - - 150,000 400,000 550,000 - As part of the water supply agreement, a capital spending plan was developed to address system long term reliability. Evaluation of the 1928 section of the pipeline is included in the plan to accurately assess the remaining useful life. This study will guide replacement strategies to ensure water delivery is sustained. 2023 Budget Book - Page 90 of 102 Lords Lake Project Description Revenue Project Budget Prior Year Revenues 2022 Est. Actual Revenues 2022 Budget 2023 Budget Future Budget Total Revenues Actuals To Date Water - Olympic Gravity Water System Fund 88,100$ 88,100 88,100 - FEMA Grant - Hazard Mitigation Grant 86,900$ 11,900 75,000 86,900 - - - - - - - - Total Revenue 175,000$ - - 100,000 75,000 175,000 - Expense Prior Year Expenditures 2022 Est. Actual Expenditures 2022 Budget 2023 Budget Future Budget Total Expenditures Actuals to Date Design Engineering / Permitting - - Water 130,000$ - 95,000 35,000 130,000 - - - - - - - Subtotal 130,000$ - - Construction* General Government - - - - Water - - - - Storm - - Subtotal -$ - - Project Management - - - - Water 45,000$ 5,000 40,000 45,000 - - - - - Subtotal 45,000$ - - Project Contingency - - -$ - - Total Expense 175,000$ - 100,000 75,000 - 175,000 - The City is required to retain an engineering consultant to develop alternatives for improving East Dam stability during possible seismic events. The alternatives will also examine minimizing earthquake-induced embankment deformations which can lead to uncontrolled release of reservoir contents. The City is applying for a High Hazard Potential Dams Grant in 2021 in order to conduct the engineering study in 2022. 2023 Budget Book - Page 91 of 102 Cathodic Protection - 1928 OGWS Pipeline Project Description Revenue Project Budget Prior Year Revenues 2022 Est. Actual Revenues 2022 Budget 2023 Budget Future Budget Total Revenues Actuals To Date Water - Olympic Gravity Water System Fund 154,000$ 154,000 154,000 - - - - - - - - - - Total Revenue 154,000$ - - - 154,000 154,000 - Expense Prior Year Expenditures 2022 Est. Actual Expenditures 2022 Budget 2023 Budget Future Budget Total Expenditures Actuals to Date Design Engineering / Permitting - - Water -$ - - - - - - - - Subtotal -$ - - Construction* General Government - - - - Water 130,000$ 130,000 130,000 - - - Storm - - Subtotal 130,000$ - - Project Management Cathodic Protection - 1928 OGWS Pipeline - - - - Water 24,000$ 24,000 24,000 - - - - - Subtotal 24,000$ - - Project Contingency - - -$ - - Total Expense 154,000$ - - 154,000 - 154,000 - As part of the water supply agreement, a capital spending plan was developed to address system long term reliability. Cathodic protection is a key feature in the system needed to extend the life of the pipeline. Cathodic protection is missing in the area between the Master meters and south past Otto Street. This project will install a new cathodic system for this section of the pipeline. 2023 Budget Book - Page 92 of 102 Project Description Revenue Project Budget Prior Year Revenues 2022 Actual Revenues 2022 Budget 2023 Budget Future Budget Total Revenues Actuals To Date - Water Rates 200,000$ 200,000 200,000 - - Total Revenue 200,000$ - - - 200,000 200,000 - Expense Prior Year Expenditures 2022 Actual Expenditures 2022 Budget 2023 Budget Future Budget Total Expenditures Actuals to Date Design Engineering / Permitting - - - - - - - - - Subtotal -$ - - Construction - - Water 200,000$ 200,000 200,000 - - - - - - - Subtotal 200,000$ - - Project Management - - - - - - - - - - Subtotal -$ - - Project Contingency - - -$ - - Total Expense 200,000$ - - 200,000 200,000 - Miscelaneous capital repairs and replacment work comes up most years. The rate analysis includes $200,000 per year of miscelaneous and unforeseen capital improvements. These funds support pipe replacement, and rehabilation such as CIPP or slip lining. 2023 Budget Book - Page 93 of 102 Sewer Outfall Project Description Revenue Project Budget Prior Year Revenues 2022 Actuals 2022 Est. Actual Expenditures 2022 Budget 2023 Budget Future Budget Total Revenues Department of Ecology (ECY) Loan/Grant 408,000$ 408,000 408,000 Department of Ecology (ECY) Loan 3,330,000$ 90,000 90,000 3,240,000 3,330,000 Sewer System Development Charge 200,000$ 92,576 107,424 200,000 Sewer 170,000$ 11,000 10,000 10,000 149,000 170,000 - - - Total Revenue 4,108,000$ 500,576 11,000 100,000 100,000 3,496,424 4,108,000 Expense Prior Year Expenditures 2022 Actuals 2022 Est. Actual Expenditures 2022 Budget 2023 Budget Future Budget Total Expenditures Design Engineering / Permitting - - - Sewer 805,000$ 394,222 2,582 10,000 80,000 80,000 320,778 805,000 - Subtotal 805,000$ - Construction - - - Sewer 2,710,000$ 2,710,000 2,710,000 - Subtotal 2,710,000$ - Project Management - - - Sewer 403,000$ 92,428 126 1,000 20,000 20,000 289,572 403,000 - Subtotal 403,000$ - Project Contingency - 190,000$ 190,000 190,000 Total Expense 4,108,000$ 486,650 11,000 100,000 100,000 3,510,350 4,108,000 This project includes permitting, design and construction to replace or rehabilitate the off-shore portion of the existing wastewater treatment plant outfall system with a new outfall and diffuser. The City has secured Department of Ecology loans to help construct this project. 2023 Budget Book - Page 94 of 102 General Sewer Plan Project Description Revenue Project Budget Prior Year Revenues 2022 Actual Revenues 2022 Est. Actuals 2022 Budget Sewer 2023 Budget Future Budget Total Revenues Actuals To Date Sewer System Development Charge 230,000$ 37,777 100,000 210,000 20,000 230,000 37,777 Interlocal Agreement with Jeff. Co 30,000$ 10,000 30,000 30,000 - - - - - Total Revenue 260,000$ 37,777 - 110,000 210,000 50,000 260,000 37,777 Expense Prior Year Expenditures 2022 Actual Expenditures 2022 Est. Actuals 2022 Budget Sewer 2023 Budget Future Budget Total Expenditures Actuals to Date Design Engineering / Permitting - - - - - - RH2 Contract = 198522+30000 Sewer 230,000$ 27,571 47,566 100,000 180,000 50,000 230,000 75,137 - - Subtotal 230,000$ - Construction - - - - - - - - - - Subtotal -$ - - Project Management - - - - - - Sewer 30,000$ 10,206 3,565 10,000 30,000 30,000 13,771 - - Subtotal 30,000$ - - Project Contingency - - -$ - - Total Expense 260,000$ 37,777 51,131 210,000 50,000 260,000 88,908 The General Sewer Plan for the City was last updated in 2000. This update involves a signficant review of the entire sanitary sewer system to plan for the next 20 years. The City selected RH2 Engineering in 2021 to complete the plan update in 2022. The plan will result in an updated Capital Plan as well as project operational needs for operating the sewer system.2 2023 Budget Book - Page 95 of 102 Wastewater Nutrient Project Description Revenue Prior Year Revenues 2022 Actuals 2022 Est. Actual Revenues 2022 Budget Sewer 2023 Budget Future Budget Total Revenues Department of Ecology (ECY) Nutrient Grant 160,000$ 160,000 160,000 Sewer Rates 15,000$ 3,500 15,000 15,000 - - - - Total Revenue 175,000$ - 3,500 160,000 15,000 175,000 Expense Prior Year Expenditures 2022 Actuals 2022 Est. Actual Expenditures 2022 Budget Sewer 2023 Budget Future Budget Total Expenditures Design Engineering / Permitting - - - Sewer 160,000$ 1,655 2,500 155,000 5,000 160,000 - Subtotal 160,000$ - Construction - - - - - Subtotal -$ - Project Management - - Water - Sewer 15,000$ 98 1,000 5,000 10,000 15,000 - Subtotal 15,000$ - Project Contingency - -$ - Total Expense 175,000$ - 3,500 160,000 15,000 175,000 The City's Wastewater Treatment Plant does an exceptional job removing nutrients from the waste stream before reclaimed water is released into the Straight of Juan De Fuca. In order to reduce nutrient loading to the Puget Sound, the Department of Ecology is expected to place new limits on the City's National Pollutant Discharge Elimination System (NPDES) permit. The City will receive a grant to perform a study of the plant to determine what upgrades are necesary to comply with the new permit. 2023 Budget Book - Page 96 of 102 Project Description Revenue Project Budget Prior Year Revenues 2022 Actual Revenues 2022 Est. Actual Revenues 2022 Budget 2023 Budget Future Budget Total Revenues - Stormwater Rates 50,000$ 5,000 50,000 55,000 - Total Revenue 50,000$ - - - - 50,000 55,000 Expense Prior Year Expenditures 2022 Actual Expenditures 2022 Est. Actual Expenditures 2022 Budget 2023 Budget Future Budget Total Expenditures Design Engineering / Permitting - - - - - Subtotal -$ - Construction - Storm 50,000$ 4,711 5,000 50,000 55,000 - - - Subtotal 50,000$ - Project Management 54 - - - - - Subtotal -$ - Project Contingency - -$ - Total Expense 50,000$ - - 50,000 55,000 Miscelaneous capital repairs and replacment work comes up most years. The rate analysis includes $50,000 per year of miscelaneous and unforeseen capital improvements. 2023 Budget Book - Page 97 of 102 2023 Budget Book - Page 98 of 102 City Council 2022 Fax Number for all Council members is the Admin fax line: 360-385-4290 Name Public Phone Email Term Expires Ben Thomas 360-379-2980 bthomas@cityofpt.us 12/31/25 Pos. 1 Aislinn Diamanti 360-379-2980 adiamanti@cityofpt.us 12/31/25 Pos. 2 Monica MickHager 360-379-2980 mmickhager@cityofpt.us 12/31/23 Pos. 3 Owen Rowe 360-379-2980 orowe@cityofpt.us 12/31/23 Pos. 4 Libby Urner Wennstrom 360-379-2980 lwennstrom@cityofpt.us 12/31/25 Pos. 5 Amy Howard 360-379-2980 ahoward@cityofpt.us 12/31/23 Pos. 6 David Faber 360-379-2980 dfaber@cityofpt.us 12/31/23 Pos. 7 2023 Budget Book - Page 99 of 102 COUNCIL COMMITTEE ASSIGNMENTS Updated March 16, 2022 COUNCIL STANDING COMMITTEES Infrastructure and Development (1st Wed. 3pm Virtual/Chambers) ----------------------- DF, AH, AD Culture and Society (2nd Wed. at 4:30pm, Virtual/Chambers) ---------------------------- MM, OR, BT Finance and Budget (3rd Wed. 3pm / Virtual/Chambers) ----------------------------------- LW, AH, MM Intergovernmental Collaborative Group (Board of Commissioners) ---------- Council of the Whole CITY BODIES WITH COUNCIL REPRESENTATIVES Alternative Electric Management Committee -------------------------------------------------- Unassigned Lodging Tax Advisory Committee (LTAC) ------------------------------------------------------------------ DF OUTSIDE BODIES WITH COUNCIL REPRESENTATIVES Economic Development North Olympic Peninsula Resource Conservation & Development Council (NODC) AD (MM alt.) Health Jefferson County Board of Health --------------------------------------------------------------------------- LW Jefferson County Developmental Disabilities Advisory Board ---------------------------------------- OR Jefferson County Clean Water District Advisory Council ----------------------------------------------- MM Jefferson County Behavioral Health Committee---------------------------------------------------------- AD Jefferson County Solid Waste Facilities Task Force ---------------------------------------------------- OR Housing Affordable Housing Task Force --------------------------------- Unassigned (doesn't currently exist) Housing Fund Board ----------------------------------------------------------------------------------------AH, AD Infrastructure Public Infrastructure Board ------------------------------------------------------------------------------------- DF Law and Justice Jefferson County/Port Townsend Regional Emergency Planning Committee -------------------- MM Transportation Jefferson Transit Authority Board ----------------------------------------------------------------------- BT, DF Peninsula Regional Transportation Planning Organization Executive Board------------ BT (DF Alt) Surface Transportation Block Grant (STBG) Selection Committee------------------------------------DF Other Climate Action Committee ------------------------------------------------------------------------------------- OR Jefferson County/City of Port Townsend LEOFF I Retirement/Disability Board ------------------- DF JeffCom Administrative Board ------------------------------------------------------------------------------ Staff OlyCAP Board of Directors ------------------------------------------------------------------------------------ AH Joint Growth Management Steering Committee----------------------------------------------- AD, DF, BT Jefferson County FEMA funds (Dove House Advocacy Services, administrative agency) ----- AD Port Townsend Main Street HUD Loan Committee ------------------------------------------------------ AH Creative District -------------------------------------------------------------------------------------------------- OR Fort Worden Public Development Authority --------------------------------------------------------------- LW Jefferson Broadband Action Team ------------------------------------------------------------------------- LW Team Jefferson Economic Development Council (EDC) ----------------------------------------------- MM 2023 Budget Book - Page 100 of 102 Pos.Name & Experience Exp.Pos.Name Exp. 1 Matt Miner 5/1/25 1 Kathleen Knoblock 5/1/23 2 Jim Todd 5/1/23 2 Michael D'Alessandro 5/1/23 3 Jennifer Rotermund 5/1/24 3 George Randels 5/1/23 4 Pamela Adams 5/1/25 4 Walt Galitzki 5/1/24 5 Rebecca Kimball 5/1/25 5 Richard Berg, Chair 5/1/24 6 Russell Hill 5/1/24 6 Craig Britton, Vice Chair 5/1/25 7 Deborah Jahnke, Chair 5/1/24 7 Kathleen Croston 5/1/25 Pos.Name & Role Exp.Pos.Name Exp. 1 David Faber, Chair (Elected Official)N/A 1 Nan Toby Tyrrell 5/1/23 2 Sherri Hanke (At Large Position)5/1/23 2 Alexis Arrabito 5/1/23 3 Cindy Finnie (At Large Position)5/1/25 3 Sheila Long 5/1/23 4 Katy Goodman (Recipient)5/1/25 4 Cosmo Rapaport 5/1/24 5 Barb Trailer (Recipient)5/1/24 5 Lindsey Wayland 5/1/25 6 Danielle McClelland (Recipient)5/1/25 6 Sally Kiely 5/1/25 7 Denise Winter (Recipient)5/1/25 7 Joe Gillard 5/1/24 8 VACANT 5/1/22 8 Dan Groussman 5/1/25 9 VACANT (Collector)5/1/22 9 Nhattaleah Nichols, Chair 5/1/24 10 Natalie Maitland, Fort Worden PDA Designee (Collector) 5/1/23 11 Nathan Barnett (Collector)5/1/24 12 Main Street Designee (Nonvoting)5/1/24 13 Arlene Alen (Nonvoting)5/1/23 14 VACANT (Nonvoting)5/1/20 Pos.Name Exp. 1 Ann Katzenbach 5/1/25 2 Ellie Mathews 5/1/24 3 Jacqueline Mention, Chair 5/1/24 4 Kathy Ryan 5/1/23 Pos.Name Exp.5 Kathleen Hawn 5/1/23 1 Catharine Robinson N/A 6 Rebakah Daro Minarchek 5/1/23 2 Earll Murman N/A 7 David Tolmie 5/1/25 3 John Nowak N/A 4 Richard Jahnke N/A 5 Troy Surber N/A 6 VACANT N/A 7 VACANT N/A 8 VACANT N/A PARKS, REC, TREES & TRAILS ADVISORY BOARD (5-7) Meets Bi-monthly 4:30pm 4th Tuesday at City Hall Council Liaison: None 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) Council Liaison: Owen Rowe Council Liaison: Monica MickHagerCouncil Liaison: Amy Howard Council Liaison: Ben Thomas LODGING TAX ADVISORY COMMITTEE (11 voting) Meets 3:00pm quarterly 2nd Tuesday at City Hall Meets Bi-monthly 1:00pm 2nd Tuesday at the LLC FINANCIAL SUSTAINABILITY TASK FORCE TBD Council Liaison: None 2023 Budget Book - Page 101 of 102 Pos.Name Exp. 1 Samantha Bair Jones 12/31/24 2 Neil Nelson 12/31/23 3 Rick Jahnke, Vice Chair 12/31/24 4 Viki Sonntag 12/31/23 5 Lois Stanford, Chair 12/31/22 6 Robert Doyle 12/31/22 7 Andreas Andreadis 12/31/24 Pos.Name Exp. 1 Gail Ryan 12/31/25 2 Troy Surber 12/31/24 3 Richard Knight, Chair 12/31/23 Pos.Name Exp. 1 Jefferson County BoCC ( Kate Dean)N/A 2 City Council (Owen Rowe)N/A 3 JeffPUD (Jeff Randall - Vice Chair )N/A 4 Jefferson County Public Health (Laura Tucker)N/A Pos.Name Exp. 5 Jefferson Healthcare (Chris O'Higgins)N/A 1 Brad Mace 10/24/22 6 Jeff. Transit (John Bender)N/A 2 Victoria Brazitis 10/24/22 7 Port of PT ( Eric Toews/Jim Pivarnik)N/A 3 David King 10/24/23 8 PT Paper Corp. (Michael Clea)N/A 4 Eva Weber 10/24/23 9 Cindy Jayne -Chair 12/31/23 5 John Begley 10/24/24 10 Arlene Alen 12/31/24 6 Rodger Schmitt 10/24/24 11 David Wilkinson 12/31/22 7 Celeste Tell 10/24/24 ` 12 Diane McDade 12/31/24 8 VACANT 10/24/22 13 Cara Loriz 12/31/24 9 10/24/25 14 Kate Chadwick (Policy)12/31/23 10 10/24/25 15 Dave Seabrook 12/31/24 11 10/24/25 Meets at Fort Worden Commons B Council Liaison: Libby Wennstrom FORT WORDEN PDA (9-11) Name Joanna Sanders, City Clerk Melody Eisler, Library Director _______, 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 bi-monthly 3:00 p.m. on 2nd Tuesday VACANT, Student Representative CIVIL SERVICE COMMISSION (3) Meets as needed PLANNING COMMISSION (7) _____________, Citizen Representative VACANT Producers Group Representative (Optional) PEG ACCESS COORDINATING COMMITTEE (8) Meets 3:30pm 2nd Tuesday at the Gael Stuart Building VACANT, Video Professional Meets 6:30pm 2nd & 4th Thursday at City Hall 2023 Budget Book - Page 102 of 102