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HomeMy WebLinkAbout3343 Adopting the Budget for the City of Port Townsend, Washington, For the Fiscal Year Ending December 31, 2025Ordinance 3343
Page 1 of 2
ORDINANCE NO.3343
AN ORDINANCE ADOPTING THE BUDGET FOR THE CITY OF PORT
TOWNSEND, WASHINGTON, FOR THE FISCAL YEAR
ENDING DECEMBER 31, 2025
WHEREAS, the City Manager of the City of Port Townsend, Washington, completed
and placed on file with the City Clerk a proposed budget and estimate of the amount of monies
required to meet the public expenses, bond retirement and interest, reserve funds and expenses of
government of the City for the fiscal year ending December 31, 2025 (the "2025 Preliminary
Budget"), and a notice was published that the City Council would conduct a public hearing on
the 181h of November 2024 at 6:00 p.m., at City Hall for the purpose of receiving public
testimony regarding the preliminary budget for the 2025 fiscal year; and
WHEREAS, the City Council held a public hearing on November 18, 2024 at which all
taxpayers were heard who appeared for or against any part of the preliminary budget; and
WHEREAS, following the public hearing, the City Council met in City Council
Chambers on December 2, 2024, to consider the 2025 Final Budget and receive further public
comment, and made adoptions and changes, as it deemed necessary and proper; and
WHEREAS, the 2025 Budget does not exceed the lawful limit of taxation allowed by
law to be levied on the property within the City of Port Townsend for the purposes set forth in
the 2025 Final Budget, and the estimated expenditures in each fund set forth in the 2025 Final
Budget are all necessary to carry on the government of the City for fiscal year 2025, and are all
necessary to meet the various needs of the City during the period;
NOW, THEREFORE, the City Council of the City of Port Townsend, Washington, do
ordain as follows:
Section 1. The budget for the City of Port Townsend, Washington, for the fiscal year
2025, is hereby adopted at the fund level as set forth in the document entitled "City of Port
Townsend Final Budget 2025," a copy of which has been and now is on file with the office of
the City Clerk, and by this reference is incorporated into this Ordinance.
Section 2. Estimated revenues, including fund balances for working capital for each
separate fund of the City of Port Townsend, and aggregate totals for all such funds combined, for
the year 2025, are set forth in summary form in Exhibit A attached, and by this reference are
incorporated in this Ordinance, and are appropriated for expenditure at the fund level during the
2025 budget year.
Section 3. The City Clerk is directed to transmit a certified copy of the City of Port
Townsend Final Budget 2025 to the Office of State Auditor and to the Association of
Washington Cities.
Ordinance 3343
Page 2 of 2
Section 4. This Ordinance shall take effect upon its passage, approval, and publication
in the form and manner provided by law.
ADOPTED by the City Council of the City of Port Townsend, Washington, at a regular
meeting thereof, held this 2nd day of December 2024.
David J. Faber
Mayor
Attest:
r
0
1 1 od`l les
City Clerk
City,f port
owns en
�Pwnljc
D
& IU A Irm' G L
13 RUE
Adopted December 2, 2024
SECTION
PAGE
2025 City Manager Budget Message
1
2025 Fund Summaries
21
Staffing & Compensation Summary
60
Debt Capacity and Graphs
68
CIP Summary and Project Pages
70
2025 Strategic Workplan
12g
Port Townsend Financial Policies
135
Port Townsend Purchasing Policy
Council, Committees & Advisory Boards
158
217
2025 City Manager Proposed Budget
ua
u
cit,
f rt
FO
'W1 0 t S CO'K I I
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 2025 CITY MANAGER BUDGET
Message from the City Manager:
Over the past few years, in preparing the budget for City Council consideration, the City
team has transitioned away from the fear and uncertainty of the pandemic, the myopia of
simply thinking about the next year ahead, and the somewhat stale, hold -over approach
of "this is always how we've done it."
If you take the time to review the previous years' budgets — or even just the budget
messages from me — you'll see them evolve into something increasingly clear-eyed,
strategic, and honest.
This year we attempt to keep moving forward in a similar fashion, with a balanced, smart,
and forward -thinking budget that reflects our community's values and sets us up for
enduring success.
Certainly, the team and I continue to be challenged by macroeconomic conditions beyond
our control, like escalating costs of materials and labor, or local and regional conditions
like seemingly impossible housing affordability. Add to that the discomfort of new or
changing state and federal requirements or the accounting realities of keeping funds
balanced and appropriately separated, and we're already showing up to this budget race
a bit on the back foot. Despite that, we're always up for a challenge and keep a persistent
focus on the future of our community. Over time, we believe that, by making tough
decisions and sticking together, we can make things fairer and better for everyone.
2025 City Manager Proposed Budget
To those ends, we have worked for at least half a year to prepare this budget. It started
at a strategic workplan retreat in July with City Council and Department Directors when
we honed in on our priorities with an appropriate mix of ambition and reality. Much of that
retreat focused on how to balance both the year -on -year operational needs with the
longer -term, integrated strategic thinking of the Financial Sustainability Initiative. That
initiative grounds us in multi -year approach to fiscal responsibility that's game -changing
— so it's perhaps no surprise it won a national award.
We then asked each department to provide their list of budget requests that would get
those priorities done and worked together to consider "key moves" to continue our multi-
year financial sustainability journey. All of this was balanced against 2025 revenue
predictions and our policies that require all funds to stay in the black. Many of those items
show up in this year's budget. A few examples:
• Smart seed funding for facilities repair and replacement. In the 2024 budget,
we recognized that we do not plan well for facilities replacement and repair, often
scrambling to find money after things inevitably break. We set aside funding to
seed a repair/replacement fund to better anticipate and respond to facilities needs.
This budget is the second year (of five) for investment into that fund.
• Smart seed funding for fleets repair and replacement. The facilities seed
funding approach is working, so we are proposing a similar approach for fleets in
this year's budget. Similarly, doing so puts fleet repair and replacement on a
predictable schedule which means better predictability and financial stability.
• Smarter investments. The City takes in and pays out funds every day, but per
policy and common sense, we need to ensure that the balance stays positive.
Better financial planning means we put our balance to work earning interest, taking
advantage of high interest rates and phasing the investments so we still have
access to funds in case of unforeseen circumstances.
• Fighting off our debt. Debt is an inevitable reality for almost all cities as it helps
spread longer -term investments more equitably to those who benefit. Too much
debt, however, hinders our abilities to get more accomplished and the City and our
community have suffered from the City overleveraging debt. Last year we paid off
some debt early, but some of those payments return in 2026. This year's budget
gets a jump on those 2026 payments by setting funding aside so we don't
overextend this year. We will also, as per above, invest those funds this year while
they sit in waiting for next year.
• Rainy -day fund. This fund strengthens our approach to preparing for
unanticipated downturns and natural disasters to ensure stability of staffing and
services. Putting aside one-time revenue like sales tax from major projects seeds
the fund and will provide continuity when we need it most.
• Bold housing action. The Comprehensive Plan, a major priority for 2025, is
crucial to housing availability and affordability — and fundamental to delivering
financial sustainability. More residents add character and help spread the costs of
2025 City Manager Proposed Budget
services that we all depend on. Plus, more attainable housing helps local
businesses — and the City — recruit and retain employees who provide important
services, amenities, and local economic development. Perhaps more importantly,
many of our residents suffer from the lack of affordable housing options and
housing action is key to a more healthy, safe, and equitable community.
• Strategic staffing. Our staff size has not grown consistently with the population
of residents, and we've been chronically understaffed for many years. Adding
positions like a Parks Maintenance Worker, a Water Distribution Maintenance
Worker, a Streets Operator, and a Housing Coordinator help us deliver on our core
priorities.
• Departmental synergy. The budget includes a change in how the City organizes
some of our important community services: a combined Community Services
Department that incorporates Parks and Facilities teams, the Library department,
and adds an arts and culture component to oversee the PT Creative District. The
aim is for better, more integrated, more stable delivery of these services to our
community alongside a fiscally prudent way of doing so.
• Major progress on infrastructure projects. With over $45m of funded
infrastructure projects on the books, we continue to move forward with streets,
water, sewer, stormwater, parks, facilities and other infrastructure projects that
not just catch us up from years of deferred maintenance, but help take us forward
in building a stronger, more resilient, and better community for us all.
These are but a few ideas captured in the 2025 budget. I encourage you to read through
these pages, and I invite you to stay engaged in the budget process. I hope you find it a
refreshing change to how we've always done things — perhaps even something that's
more clear-eyed, strategic, and honest. Regardless, feel free to reach out to me with your
thoughts by email atLgIgure @citygfak.tL , attend one of my coffee conversations each first
Friday of the month (see newsletter or the City's Facebook page for details), or tune in to
my regular show on KPTZ each Thursday at 12:30. Better yet, I invite you to explore and
discover ways you might be able to get involved to help us deliver on our collective
aspirations for a healthier, more resilient, more inclusive Port Townsend for us all.
John Mauro
City Manager
2025 City Manager Proposed Budget
2025 CITY MANAGER PROPOSED 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:
City �I; �W
rt
CITY OF PORT TOWNSEND
TZ�
of
own,send
2025
BUDGET FUND
SUMMARY
2024 Est.
Ending
Revenue
Revenue
ACTUALRev-
%from
Expense
Rev vs. Exp
2025 est.
Rev vs. Exp
2025 Projected
Ending
Fund Balance
Budee0
YTD Actual
BUDGET Rev-
Bullet
Budget*
YLE Target
Budd
Fund Balance_
GENERAL FUND
4,954,075
16,085,911
0
16,085,911
0
17,091,233
Q 9,OW.tl."v,:$2o:p
Q;0.,GUtUS,if'72Q
3,948,753
Drug Enforc. / Contingency
255,664
25,000
0
25,000
0
0
A.R.P.A.
291,878
0
0
25,000
25,000
280,664
Street/Transportation Benefit Dist
288,938
2,760,962
0
0
2,760,962
0
265,000
pb. ,(JooY
pba ,000U
16,878
Library
605,635
1,356,000
0
1,356,000
0
0'
2,136,962
624,000
624,000
912,938
Real Esta to Excise Tax
1,266,011
685,000
0
685,000
1,231,379
124,621
124,621
730,256
Lodging Tax
1,250,331
615,000
0
615,000
0
897,355
Q212,:t' sp
(2 t ,1"5',1
1,053,656
Fire/EMS
7,56
0
972,751
1,65,'7„9�'i7[l
i3"s7,!':i.Ilp
892,580
Affordable Housing
77,556
92,896
tl3
92,8960
0
0
D
D
7756
Community Development Block Grant
189,433
28,000
0
28,000
92,896
0
0
77,,556
Community5ervlces
1,224598
3,273,679
0
3,273,679
0
0
2Q000
B,D00
81000
197,433
TOTALSPECIAL REV FUNDS
5,447,800
8,836,537
0
8,936,537
0
3,273,679
0
0
1.224598
8,890,022
Qwr3,A,k9"i�u
QS4,485Q
5,394,315
DEBT SERVICE FUND
2,071,203
1,114,712
0
1,114,712
0
1,114,712
0
0
2,071,203
General Capital
Street Capital
213,528
1,367,699
0
1,367,699
0
1,391,133
Q2.;1A4 M
[21,4341
190,094
624,869
3,371,305
0
3,371,305
0
3,961,488
Q590 A+;,?,)
(90,103„
34 ¢,8�
CAPITAL PROJECTS FUNDS
838,397
4,739,004
0
4,739,004
0
5,352,621
Q614,611Q
16t 3,E➢,ap
224,790
Golf Course
System Development
1,776
2,467,917
31,000
385,000
0
31,000
0
31,000
0
0
1,776
Water/ Sewer Operations
6,191,132
10,126,000
0
tl1
385,000
0
1,645,9S0
QSY.,'X6C1,0!'Si'J l
Q�,5?I,750Q
967
Water/Sewer Capital
127,325
12,510,710
4
10,126,000
G'b
13,697,750
Q3,571,7:rYlp
Q':t,SPV.„7"aCY(i
2,619,382
2,619,382
1956 Trans Line Replacement
8,979,537
4,975,000
1]
12,510,710
0
12,541,313
(3ea,tualb
130,60;1Q
96,722
Utility Debt Reserve
585,362
100,000
4,975,000
0
1,639,134
3,335,866
3,335,866
12,315,403
Storm Operations
408,345
1,445,000
D
0
100,000
1,445,000
0
0
0
wo"O
100,000
685,362
Storm Capital
193,688
90,000
0
90,000
1,429,972
15,028
15,028
423,373
ENTERPRISE FUNDS
14955,082
29,662,710
0
29,662,710
0
0
93,389
(4,3p',Y
14,38%
190299
31,078,508
Q;f,415,708p
Q;1„0'A'Su'290A
17,539,284
Public Works Admin
IT Equipment O&M/Replacement
470,595
861,845
0
861,845
0
733,201
128,644
128,644
599,239
Fleet Equipment O&M/Replacement
231,188
2,247,076
542,425
2,024,531
0
0
542,425
0'
523,891
18,534
18,534
249,722
Englneedng Services
236,065
2,298,982
0
2,024,531
0
1,785,127
239,404
239,404
2,486,480
Unemployment Self -Insurance
1
1Q083
2,298,982
0
1,450,356
848,626
848,626
1,094,691
3
a30
0
0
0
�`i4�
INTERNAL SERVICE FUNDS
32„6,342
00,266
5,737,783
5,737
0
4.502,570
5
1, 235,208
1,235,208
4,435,474
Firemen's Pension
Custodial/ Refundable Deposits
372,121
38,694
27,500
0
27,500
0
1,374
26,126
26,126
398,247
Memorial Fund
0
0
0
0
0
0
0
0
0
38,694
FIDUCIARY FUNDS
410,815
27,500
0
0
0
27,500
0
0
0
1,374
0
0
4
26,126
26,126
436,941
GRANDTOTAL
365,811,037
,204,15!
0
fir..7cwwm.x«':'^a
AMERICAN RESCUE PLAN ACT
2025 City Manager Proposed Budget
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 has been 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, 2023, and 2024 all prior
projects were reviewed to ensure federal guidance requirements will be met. In addition,
all projects were reviewed for funding needs and project timeline. Columns were added
to reflect changes each year and a revised 2022-2025 allocation representing the total
allocated amount for the project.
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 fund:
2025 City Manager Proposed Budget
AMERICAN RESCUE PLAN ACT (ARPA) FUNDS
2025 BUDGET
TOTAL ALLOCATION • $2,765,388 _„_...,
2022 2023.2024 _ Revised 7
Pillar Parr
Allocation Allocatbn�� Change2025 Change 2025
Fnancial Sustainabiity & Staff Support , P e 'shades, m
S
c.suaWa rrok door goalna
...1..,_
130.(100
$ 130.000
Fbw r . µ ka PikC C&1as%stlOrd3
,...
.... .............w_.
S .90000
_.
S 3,500J
$ 765W
Caanllaay Flail Phase 3 improvements b su
Fnanoal Suslalnabiity 8 Staff Support PPS
...
.Kdr
0 rregs e_ bavd^nd _
S 310,000
S 91,WI
1
S 40f,000
Vision for Parks 8 Recreation Communications and professional consultant supportXXXM1
..E.......__ 25.000
_.
S 66.931
S 91,931
_—
Vision for Parks 8 Recreation Ca "ps`"t OnpfomnWaan of a Como ."
dad i�a4raase Conym
S 30,1100
S 50,000
S 00,000000
Vision la Parks, ... _ Goff ;s "& µ .,,,. ...,,,,_..............�.,
8 Reaeation
...„
.,....,...�
�'
for o1 Parks and Reaeation Strad
Vision fa Parks 8 Reaeation .._.—
S 100.00
..
000
(100.000)
S 269.98
TWAL 2022.2024 ARPA Requests
S 803,855
S 1,951.533
S
S 200
3 0
S 53,913
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.
2025 BUDGET ASSUMPTIONS
The 2025 C11tv Managier Proposed Budget allocates resources to initiatives included in
the City°s 2025 strategic workplan, This workplan was developed by staff and reviewed
and workshopped with the City Council at an all -day retreat held on July 22, 2024.
The 2025 strategic workplan is broken down into five major categories:
2025 City Manager Proposed Budget
• INVEST IN OUR PEOPLE
Build and nurture the capacity of our staff, teams, volunteers, advisory board
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.
• INNOVATE OUR SYSTEMS, STRUCTURES & PROCESSES
Set the City and community up for sustained success through process and
structure improvements and optimization.
• ENVISION OUR SUSTAINABLE FUTURE AND DELIVER OUR PRIORITY
INITIATIVES
Deliver the 2025-2045 Comprehensive Plan and associated priorities to catalyze
a financially, socially, and environmentally sustainable future.
• DELIVER THE BASICS
Provide consistent critical operations, ongoing statutory responsibilities, and core
City functions.
Associated funding in the 2025 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 2025 strategic workplan is included as part of the 2025 Proposed Budget
Book.
AFFORDABLE HOUSING
Affordable Housing is a key priority for 2025 and beyond. The City continues its work
to support efforts for affordable and attainable 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 the 4th quarter of 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 $91,000 through 2024.
Fee deferrals for housing providers for certain permit fees and system
development charges. Providers include Habitat for Humanity, Peninsula
Housing, Olympic Housing Trust, Olympic Community Action Program and
Bayside Housing & Services. Total investment from 2011-2024 of $813,610.
The City obtained a Connecting Housing through Infrastructure Program grant
from Department of Commerce to reimburse City utility enterprise funds with
$58,055 for the Olympic Housing Trust Dundee Hill utility connections and
System Development Charge fee deferrals.
2025 City Manager Proposed Budget
• 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 the Department of Commerce in 2021 to acquire
property that will be earmarked for affordable housing — Grant provided
investment of $1,375,000 for the property purchase. Fourteen acres was
acquired for the Evans Vista Neighborhood.
• The City obtained a grant from the 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 obtained a Middle Housing grant from the Department of Commerce in
2023 to develop middle housing policies and codes —Grant provides $50,000.
• The City obtained a Paper to Digital grant from the Department of Commerce in
2024 to transition land use permit for housing to digital in an effort to streamline
the housing pipeline —Grant provides $60,000.
• The City secured $500,000 in 2022 to Master Plan the Evans Vista neighborhood
from the Jefferson County American Rescue Plan Act funds and completed a
Master Plan and Pro Forma in 2023. In 2025, the City will draft and market a
RFP for development with $115,000 general fund investment, along with 1x
personnel increase for a housing grants coordinator over a 2-year term.
• In March and September 2024, the City initiated an interim parking ordinance to
remove minimum parking requirements for new development to reduce over -
parking, impervious surfaces, and housing construction costs (Ordinance 3339).
The City Council has also made legislative changes related to housing including:
• Adopted a package of code updates, The "Tactical Infill Housing Code Update"
with $50,000 investment, which included:
o Allowing two ADUs per residence, allowed Tiny Houses on Wheels to be
used as ADUs.
o Eliminated barrier design requirements for cottage housing.
o Reducing parking for duplex/triplexlfourplex. Relaxed parking for
multifamily in mixed use.
o Creating new unit lot subdivision (ULS) tool to enable attached housing to
be built on zero lot line and conveyed fee simple.
o Allowing ULS for cottage housing, attached fee simple housing, and Tiny
House on Wheel Communities.
o Allowing employer -provided housing in certain zones to enable housing in
zones where it is otherwise prohibited. (Ordinance 3306, 2023)
2025 City Manager Proposed Budget
Much of this work was made possible through a 2-year American Rescue Plan
Act allocation for a Long -Range Planner and a Professional Services Budget for
code amendments.
Adopted 2023 Annual Comprehensive Plan Updates (Ordinances 3322 and 3323),
which included:
o Permitting greater maximum housing density in the R-IV High Density
Multifamily, C-I/MU Neighborhood Serving Mixed Use, Center C-II/MU
Community Serving Mixed Use Center, and M/C(S) Mixed Light
Manufacturing and Commercial Rainier Subarea zones.
o Permitting higher building height in the C-I/MU, C-II/MU, and M/C(S) zones.
o Specifying that height restrictions apply to habitable space, not rooftop
appurtenances such as elevator towers or water towers. The previous
height definition had limited the amount of habitable space since developers
were constrained by the height of appurtenances that are necessary for
taller buildings, such as elevators.
o Permitting greater lot coverage in the R-IV, C-I/MU, C-II/MU, and M/C(S)
zones.
o Permitting a mixture of vertical and horizontal uses in the mixed -use zones.
o Replacing Building Frontage with Minimum Commercial Space and Clear
Ceiling Height Requirements in the mixed -use zones. This allows more
flexibility in how mixed -use spaces are developed while still preserving the
ability to rent commercial space.
o Altering floor area ratio (FAR) requirements in the mixed -use zones and
M/C(S) zone to encourage greater housing density.
o Removing minimum lot size requirement in the M/C(S) zone.
o Reducing the minimum lot width required for town houses/rowhouses in the
M/C(S) zone.
o Allowing projects in the R-IV, C-I/MU, C-II/MU, and M/C(S), to substitute
one developed on -street parking space for three developed off-street
parking spaces. This preserves more land within lots for the development
of housing, commercial space, or other non -parking amenities. It also
encourages the development of the right of way.
The City also worked in partnership with Jefferson County through our Interlocal
Agreement to support affordable housing and homeless housing programs. The 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. Grant
awards totaling $1.13 million for 2024 and 2025 expenditure, with $501,141 estimated
revenues for 2025 to support code and policy updates that will enhance and streamline
housing. These grants will include considerable community engagement on how to
holistically address housing and quality of life in Port Townsend. These grants include the
2025 Comprehensive Plan Periodic Update, active transportation and climate resiliency,
2025 City Manager Proposed Budget
shoreline periodic update, middle housing, paper to digital permitting, and urban forestry
plan and tree ordinance amendment.
Grant program public outreach activities and deliverables to date on housing included:
1,, Middle Housing Gap Memo Draft
2. Middle Housing Focus Group
3. Housing Needs Assessment Draft
4. Comprehensive Plan Open House May 2024
5. Comprehensive Plan Storefront Studio Sessions July 2024
6. Comprehensive Plan Scenarios Workshop October 2024
7. Briefings with City Council, Planning Commission, Parks, Recreation, Trees and
Trails, Housing Fund Board, and Climate Action Committee
8. Golf Park outreach booth
9. Elementary and High School classroom presentations
10. Workplace worker meet-up"s (Port of Port Townsend September 2024)
11. Farmers Market Comprehensive Plan Booth (June -September 2024)
12. Active Transportation Stakeholder Subcommittee
13. Land Capacity Analysis
14.Open Space Subcommittee
15. Rotary Club presentation
16. Multiple public surveys: Planning Priorities Pall, Active Transportation survey,
Vision Swap
KEY REVENUE ASSUMPTIONS
The Cit 's Prc ert Tax Levy for 2025 is proposed at $4,084,500, 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 $12,190 for the Library levy and
$25,989 for the general fiend for 2025. New construction in the city is estimated at $47
million. 2024 Assessed values for 2025 taxes are estimated at $2,990,339,293. 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 $1,259,500 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.
o In 2020, the City Council adopted post -annexation policy allowing the City to levy
the first 33% of the banked capacity. Due to the economic conditions during the
2025 City Manager Proposed Budget
pandemic, the Council chose not to levy the banked capacity in 2020 for 2021
taxes.
o In 2021, the City Council adopted post -annexation policy allowed the City to levy
66%, or $602,610 of the banked capacity in 2021 for 2022 taxes.
o In 2022, the City Council adopted post -annexation policy that would allow the City
to levy the remaining 34%, or $306,114 of this banked capacity in 2022 for 2023
taxes.
The 2022 and 2023 allocations of banked capacity funds for specific projects will be fully
expended by the end of 2025. These projects are included in the Capital Improvement
Project section of the budget book.
The post -annexation policy restricted the use of these funds from 2020 through 2023 for
specific uses. The restricted banked capacity funds from both the 2022 and 2023 property
taxes have been set aside for specific purpose as outlined in the post -annexation policy.
As per the policy and agreement, funds are unrestricted beginning in 2024.
The 2024 budget did not allocate funds specifically for projects and instead was included
in the General Fund budget as part of the property tax levy. Increases in general fund
expenses and streets have put banked capacity funds to work for the benefit of the
community. For example, since 2020, the street fund budget has increased by
approximately $600,000.
Additional details are provided in the Capital Improvement Projects section of the budget
book.
Below is a chart showing the distribution of property taxes:
2025 Property Tax Levys
$4,084,500
General Levy W Library Lid Lift Levy U Mountain View Voted Levy
2025 City Manager Proposed Budget
Retail Sales Taxes in 2025 are projected to come in at 12% above the 2024 adopted
budget, A year -aver -year comparison for the year-to-date period through September of
sales tax data indicates that all sectors showed improvement in 2024 as compared to
2023. In 2025 the City's budget anticipates sales tax to remain on track with the 2024
actual estimates.
Below is a chart demonstrating the trend of retail sales taxes over the last five years
showing the forecasted growth experienced in 2024 with the expectation to maintain for
2025.
k"Ow
$3,%C,=
S310000w
SUKOW
St0001o00
U500,M
SL00o,000
S5ftwo
So
$2,537,577
2021
Retail Sales Tax Trend
$3,228,961 $3,397,900
$3,054,244
2022 2023 2024-est
Retail sector as a % 2024 year-to-date Revenue through September,
4%
s Other Services
Manufacturing
* Retail Trade
* Information
r Real Estate / Rental Leasing
a Health Care / Social Assistance
,« Accommodation / Food
im Construction
0 Wholesale Trade
Transportation / Warehousing
a Administrative Support
ei Professional Services
x Arts, Entertainment, and Recreation
$3,668,405
2025-Budget
2025 City Manager Proposed Budget
Business & Occupation 'Taxes are projected to be above the budgeted amount of
$900,000 by 22% for 2024. The 2025 amount is forecast to decrease by nearly 16% to
$918,000.
Real Estate Excise Taxes RE;E:T 2025 REET revenues are budgeted at $650,000
based on the 2024 trends. 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.
Five Year Revenue Trend
Business
& Occupation and Real Estate Tax
$1,200,000
$1,055,988 $1,098,382
$1,000,000
406 $953,
q
$895�$fi 896
$918,000
42,221
iE
$800,000
9'r 161
40,484
50,000
$600,0001110
400,000
$200,000
01011,
l/
10
111
'„j
�/; rfii,
; JjN
$0
2021
2022 2023 2024
2025
Blue-B&O tax Green-REET
Utility Tax revenues in the proposed 2025 budget are based on all City water, sewer,
storm water and garbage services. The City imposes an 18% tax on the revenues of the
City's storm and surface water, water system and sewer utilities. The City also imposes
a 22% utility tax on the revenues of the City's solid waste utility. The 2025 budget is
forecasted based on the continuation of the tax.
Total public utility tax forecasted for 2025 is $3,078,786 and is intended to support all the
general services of the City.
Garbage service is required within the City. Garbage utility tax is slated to increase at the
monthly service rate increase of approximately 3% (contracted CPI adjustment), or
$562,000.
Private utility tax rates are 6% of the private utility revenue. The 2024 telephone and
electric private utility taxes are estimated to be $928,200.
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 2024 listed by the Office of Financial Management as 10,530. 2025
projected state shared revenue is $412,175.
2025 City Manager Proposed Budget
Overhead Coat Recove is projected to decrease by approximately $24,500, or 1.5%
in 2025. The decrease 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 2022 for 2024. The slow growth revenue in 2024 is primarily
the result of allocating less overhead to the Streets, Water, Sewer, and Community Funds
due to increased property valuations, increasing costs of services and Council agenda
bills in those funds.
Utilitlo Revenues Water. Sewer and Stormwater are budgeted at the adopted rate
increases outlined in the rate tables in Ordinance 3332. 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. A sewer and stormwater
rate study was completed in early 2024 with new utility rates effective April 1, 2024.
In 2025, the City is projected to have a total of 5,090 water/sewer accounts with 420, or
7.6%, of those projected to be commercial accounts. Below is a chart demonstrating the
growth in commercial and residential water/sewer accounts from 2021 through
projected 2025:
2022 2023 2024 2025
6 Residential 9a Cornmercial
A rate study was completed in 2024 and the water, sewer, and stormwater rate model
projects revenues for 2025 at $4,206,692, $4,915,034, and 1,611,205 respectively. Total
water/sewer/stormwater revenue is forecasted to be $12,633,586 as compared to
$11,408,201 in 2024, or a 10.7% increase. As noted earlier, this represents scheduled
rate increases in ordinance 3332, and 1 % account growth. Raw water sales are made to
both the City and the Paper Mill. The OGWS fund expects raw water sales to total
$5,204,771 in 2025 to fund the operations of the system and capital sinking fund.
2025 City Manager Proposed Budget
Capital Revenges provide substantial funding for general government, street and utility
projects through state and federal grants, Public Works Board, 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 the budget document.
Total Revenues budgeted for 2025 are $65,746,488 and include all anticipated revenue
for capital funding, operating funding, and fiduciary funds.
tithe#
hweases
$""'?„"+APO
2025 Proposed Revenue by Category
$65,746,488
KEY EXPENDITURE ASSUMPTIONS
Licenses &
Permits,
W6,000
Total Expenditures budgeted for 2025 are $68,296,045 and include all operating fund
appropriations in addition to water, sewer, general and street capital funds.
2025 City Manager Proposed Budget
2025 Proposed Expenses by Category
$68,296,045
Debt Ser
6:
Debt Ser
1,
Supplies,
1,663,626
Personnel Wages & Benefits represent a significant portion of the City's operating
expenses at $14,966,689 or 22% of proposed operating costs. Removing internal
transfers and debt service from operating costs, staffing is 31 % 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. A salary survey was
conducted in 2023 which has resulted in an updated compensation policy for non -
represented employees. Recruitment of key positions will continue to be a challenge in
2025 due to a competitive labor market and housing affordability and availability.
Elected position salary and health benefits — City Council Member salaries will
increase based on the compensation study that was completed in the fall of 2021 by an
independent salary commission. Council wages increased in 2024, additional increases
will happen in 2026 and 2028. Additional details can be found in the staffing section. City
Council Members are eligible to enroll in health benefits as part of the elected position
group. Coverage is dependent on group participation, with minimum requirements for the
group plan.
For non -elected positions, the 2025 budget proposes an increase of 5 positions. There
is a total of 113.6 Full Time Equivalent (FTE) positions in the 2025 budget. New budgeted
positions include Community Services Director, Arts and Culture Coordinator, Water
Maintenance Worker, Streets Operator, and Parks Maintenance Worker. The positions
are outlined by departments in the chart below:
2025 City Manager Proposed Budget
__. ..
CITY OF PORT TOWNSEND -AUTHORIZED POSITIONS
2025
Department/Division 2021 2022 2023 2 224 2025
Increase
General Government
CitywMana�er _._....w_w
1.0
. 10'
w 1.0
10
1.0
0.00
City orneywwwwwwww µ_
Att
2.0
2.0
2.0
2.0
w ww 2.0
W.-0.00
Communications &Marketing_.._
1.0
.... 1.0
.. 1.0
..._. 0.00
mPlannm Comm&Cmmunity Development
8.0
._....._
8.5
r
9 5
...__... m
1 0.0
11.0
. 0.00
Finance, UB, PRR
9.0
9.0
9.0
9.8
11.0
0.00
Police Admin & Operations
1_8.6
_ 20.1
22.1
22.3
20.0
0.00
Ci ClerklHuman Resources
3.6
4.0
5.0
4.8
3.5
0.00
Streetwwwww
�..... 7
1.7
._ .. 1 9
2 7
..._ _ 1�00
..._...... ....
ERR -Fleet & IT
_.1.7
3.0
3.0
3.
4.0
4.0
0.00
Total General Government
46.9
49.3
54.3
56.8
56.2
1.00
Communi Services
Comm Svcs Administration
0.0
0.0'
0.0
0.0
0.7
0.67
_
Arts &wCulture__
0 0
0.0
0.0
0.0
1.0
1.00
WWWWWW,,,..,,,...,._
3,.,5..
3.5
3.5
5.5
.._ 4.9
_w_......0.00
_Facilities www_.,_.
Parks Maintenance &Recreation
3.5
4.2
4.2
4.5
5.5
1.00
Pool
4.0
01
0.0
W8.9
0.0
0.0
...,.......,_.w 0.00
._............................................... www
Library
8.9
8.9
Total Community Services
19.9
16.6r
16.6
18.91
20.0
2.00
Public Works &
Utilities excl UB
_....................................................... ,.,....,.,..,_._u_ ......................................,.,
_.......
�..
'_v_M .......
_
_.. .
Public Works Administration
2.5
2.5
2.5
3.5
.............6..5
2.5
w, 0.0
Public Works�En ineerin..
5..9.
6.5.....
6.5
,nn..n...........,8.5
................ ;Y.0µ0
Utif ilities
...
.__..,
_.... .....
_
Distriµbution�...
5.0
..5.0
5.0
5.0
_.
7.$
.
_. 1.0
_ggqqWater
- .,_.......,. a �.,.,.,.....
..,,,
.. ..4_0'
�-...._'- 0_
4
4.0
3.4
,. _....
Wastewater Collection
2.2
2.2
2.2
2.2
2.2
2.6
0.0
"Waii2.2
.......
3.5
5
_..5.0
4.4
........ .............0
....B osofdsterTreatment....M..µ.......w,,,_
....._...........5
2..5
„...�,M,..._.....-..„..__._3
2 :5
2.5
,.w...._ 3.0
.... , 3.0
0..0
m_,,,,,,,,,...........w.........o,.
. ._ ........_ _..__. _.,.M...
Stormwater
3.1
,..
3.1
3.1
3.81
4.31
0.0
Total Public Works & Utilities
28.7'
29.3
29.3
33.4
37.3
1.00
TOTAL CITY FTES
95.5
95.2
100.2
109.1
_1113.61
4.00
Percentage Change
4.2%
Positions not currently counted as
FTES 2021 2022 2023 2024 1 2025
Ma o�rd ouncil ._ _wwwww..7:0 .,,,,. 7.0 7.0 ..._........7.0 ... w.... 7.0
* Total City FTES does not include leave payouts or seasonal positions
salaries within the number of FTEs & within the budgeted salaries & benefits amounts.
The 2025 budget includes 3 Seasonal Staff for Streets maintenance, Parks
Maintenance, Stormwater, Water Distribution, and Wastewater Collection. Seasonal staff
are typically hired between May and October and are budgeted at an equivalent to 0.50
FTE each.
Employee groups include three sectors the Police Collective Bargaining Unit, General
Collective Bargaining Unit, and non -represented personnel.
2025 City Manager Proposed Budget
The Police Collective Bargaining Unit contract was ratified in 2024. Recruiting and
retaining officers continues to be a high priority for Port Townsend. The 2025 budget
assumes full staffing which includes 16.0 full-time officers.
The General Government Collective Bargaining Unit contract expires December 31,
2024. Negotiations for a new contract are in process at this time. Wage increases for this
bargaining unit are not included and will be considered as part of a future budget
supplement.
A salary survey was conducted in 2023 and all positions are placed in Grade Ranges
based on current market data. 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. Teamsters Local 589 benefit plan covers both the Police and
General Government union employees. Association of Washington Cities (AWC)
provides benefits to non -represented employees.
Retirement contributions for most employees (PERS) are funded at 9.11 % of eligible
employee wages. The PERS contribution increased in September 2024. Police officers
are covered by the LEOFF retirement system at a rate of 5.32% 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.
'IJliashuin ton State minimum wage increases in 2025 to ; 16.66 per hour, which is a
0.38 per hour„ or 2.35%, increase. This increase impacts seasonal wage rates and entry
level library staff. Additionally, the increase impacts 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.
2025 CAPITAL PROJECTS
The proposed 2025 budget has a variety of capital projects that add new infrastructure
investment and improve aging infrastructure. A breakdown of planned projects is listed in
the Capital Project section of the budget.
City of Port Townsend
General Fund Budget Detail and Summary
General Fund
Beginning Fund Balance
Revenues
Taws
Licenses & Permits
Intergovernmental Services
Charges for Goods & Services
Fines & Penalties
Miscellaneous Revenue
Other Increases
Other Financing Sources (inc. Transfers In)
Total Revenue
penditures
arms & Wages & Benefits
CagAai Outlays
Debt Service - Principal
Debt Service - Interest
Other Financing Uses (inc. Transfers Out)
Total Expenditure
Net Change in Fund Balance
Ending Fund Balance
Fund Bal. 8.15 % of Revenue
General Fund - Expenditures by Department
or & Council
Manager
Attorney
lhowon Resources
Planfting & Development Services
Finance Department
Police Administration
Police Operations
Police Training
City Clerk
Contracts & Intergovernmental
PEG Access
Non -Departmental (inc Transfers Out)
Total Expenditures
Mayor & Council
City of Port Townsend
GENERALFUND
BUDGET SUMMARY
2022 2023 2024 2024 2uia mu exaseruevrua a
2025 Proposed vs 2024
Actual Actual Actual Budget Proposed
Budget
5,311,932 6,905,588 i6,554,219 _ 6,554,219-4,953,816 ��-..........
9,019,078
10,804,663
9,627,535
10,786,698
11.769,552
9.1 %
638,236
521,806
451,481
496,500
486,000
-2.1 %
1,841,711
476,915
531,804
1.268,657
896,378
-29.3%
2,055,288
2,245,457
1,736,743
2,356,475
2,347,084
4.5%
2.474
3,877
3,734
9,900
11,900
20.2%
206,956
404,609
322,474
306,781
378,997
23.5%
20,841
390
500
35,000
35,000
0.0 %
142,735
105.462
305,000
161.000
-47.2 %
13,927,319
14,563,178.82
12,674,272
15,567,011
16,085,911
3.3 %
4,508,624
5,232,921
4,553,506
6,647,404
6,841,374
2.9%
85,736
91,507
87,817
208,400
183,156
-12.1%
2,346,578
2,977,112
3.567,572
5,059,299
4.231,000
-16.4%
177,785
287,213
181,797
199,650
134,000
-32.9%
5,214,941
6.325,795
5,883,981
5.905 089
5.701.703
-3.4%
12,333,664
14,914,548
14,274,672
18,019,842
17,091,233
-5.2%
1,593,656
(351,369)
(1,600,400)
(2,452,831)
(1,005,322)
-59.0%
6,905,588
6,554,219
4,953,818
4,101,388
3,948,496
49.6%
45.0%
39.1%
26.3%
24.5/ rIVER"
122,362
136,662
169,565
291.434
237,581
-18.5%
369,151
312,247
273,461
329,518
357,377
85%
483,504
647,013
654,887
826,288
762,723
-7.7%
40,000
40,000
75,000
187,736
150.3%
340,690
367,008
398.217
519,562
495,865
-4.6%
1,108,492
1,257,465
1,308,201
2,510,217
2.140,316
-14.7%
465,764
594,106
847,010
1,090,846
1,055,130
-3.3%
552,993
943,289
1,035,890
1,360,288
1,219,402
-10.4%
2,791,357
3,061,826
2.386,899
3,731,219
3.753,359
0.6%
21,073
15,181
10,355
41,750
44,100
5.6%
294,896
424,890
311,610
415,503
254,588
-38.7%
663,083
884,767
923,901
984,339
978.843
-0.6%
1,716
3,211
1,905
9,000
2,000
-77.8 %
5,118,584
226
66 882
.,.22 ......
r
5,912,771
5,909,678
5 602,3
1
-5.2%,2,,,,
Y7111.afYd
14AIA_54At
1..4.,274,672
1&004.842
17.091..233
-5.5%
Goal Statement:
To provide strategic decision -making and policy direction as elected leaders and positive
change -makers for the community they represent and serve, clearly understood and
operationalized by City staff.
2025 Key Goal:
• Mayor and City Council are equipped with the training, tools, and technical know-how to do
their jobs well on behalf of the community they serve.
2025'IJ qrk Plan:
• Invest in our people — build and nurture the capacity of... Councilmembers and partnerships
and provide them the toolsets, skillsets, and mindsets to achieve more together.
• Engage our community — nurture civil civic dialogue, effective provision of information, and a
more productive, active, and positive partnership with our community.
• Envision our sustainable future and deliver our priority initiatives — deliver the Comprehensive
Plan and associated priorities to catalyze a financially, socially, and environmentally
sustainable future.
Gal Statement;
To deliver integrated, strategic, and sustainable value from the City organization to the
community by operational izing 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.
2025 l ev Goal:
• Organization aligns short and long-term decision -making with the foundational work of the
Financial Sustainability Initiative, nurturing a collaborative and can -do organizational culture,
and bringing strategy and synergy to the City's work and our success in partnering and
stewarding our collective future with the community we serve.
2025 LALork Plan:
• Integration of core strategic workplan pillars like invest in our people, engage our community,
and innovate our systems as the "how" to more effectively deliver the "what" of the
Comprehensive Plan and associated initiatives, and aligning with the "why" of fiscal, social,
and environmental sustainability for a better and more equitable community.
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.
2025 K2y Gogl;
• Effective stewardship and resolution of litigation.
2025 Work Plan:
• Support other departments in work plan items, particularly land -use, Comprehensive Plan,
and public works -related priorities and well as providing public records support and guidance.
Ensure our community is deeply engaged in decisions that affect their lives and livelihoods,
and ensure our teams are supported and aligned in our strategies for engagement.
2025 Key Goals:
• Refine and stabilize systems for aligned communications across City channels.
• Build lasting relationships and trust for our internal teams and community, including support
for staff engagement and facilitating strong community partnerships.
• Facilitate kindness & connectivity in community dialogue and welcome diverse viewpoints.
• Support public education around the City's work with a focus on financial sustainability.
2025 Work Plan:
• Refresh the City website and increase accessibility tools, including building a library of
people -centered creative assets.
• Broaden the reach of our print and digital newsletters and address barriers to access.
• Collect, analyze, and utilize data on engagement across our channels.
• Define roles and train PELs for sustainable contributions to communications and marketing,
• Broaden our relationships with media & partner organizations and develop new pathways
for city communications and educational materials.
• Work with Department staff and Advisory Boards to initiate and continue targeted and
forward -thinking outreach on policy and projects.
Peo le & Performance/Human Resources and City Clerk
Goal Statement:
To recruit, develop, and retain a high -performing and diverse workforce, to assist in providing
accessibility and transparency in effective public meetings and contracting, and to create and
support a culture of growth and development, accountability, engagement, productivity, and
effective communication.
2025 KO Goal:
• Attract and hire qualified candidates.
• Reduce employee turnover and maintain a high level of employee engagement.
• Provide opportunities for continuous learning and professional growth.
• Improve staff engagement and job satisfaction.
2025 Work Plan:
• Develop programs to recognize and reward employee performance.
• Launch engagement survey, evaluate and analyze results, and incorporate suggestions for
improving employee engagement.
• Identify skill or development gaps and develop training programs to address them.
• Update employee policies and programs to ensure best practices are in place.
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.
2025 ff_go al-
• Initiate and complete Phase II of the 2025 Comprehensive Plan Periodic Review process to
update elements and implementation actions for the plan with additional appendices
including an Urban Forestry Plan, Housing Needs Assessment as well as an update to the
Active Transportation Plan. Prepare proposed development regulation amendments for 2025
adoption to implement the new Comprehensive Plan and ensure consistency with newly
adopted state laws such as those pertaining to design review, meeting housing forecast for
various income groups, ADU's, and permitting timelines.
• Streamline the process of adding housing units to the development pipeline with policy,
regulatory, and procedural improvements.
• Complete the Shoreline Master Program update with focus on climate resilience goals,
policies, and implementation for the downtown Water walk to provide public access and sea
level rise protection.
• Update Critical Areas Ordinance according to Best Available Science.
• Use state grant funding through HB 5290 to final e-permitting enhancements to support
customer stakeholders and construction/housing data analysis reporting. Use grant funds to
complete informative videos on how to avoid frequent permit application mistakes.
• Hire Housing Coordinator to assist with Evans Vista marketing, proposal evaluation, and
construction agreements.
• Execute development agreement for Evans Vista.
• Hold public hearing on Evans Vista subdivision and issue permitting decision.
• Conduct public outreach and begin drafting Urban Forestry Plan and tree conservation
ordinance amendments with USDA IRA grant funds.
• Initiate annual fire life safety inspections for commercial and multifamily occupancies in
concert with East Jefferson Fire Rescue
2025 Work elan:
• Continue to develop, implement, and refine code and Comprehensive Plan changes to help
unlock and inspire affordable, dense, quality infill development.
• Implement the community's vision for Evans Vista neighborhood and deliver infrastructure to
make it development ready.
• Develop and market RFP for Evans Vista phased development.
• Develop an open space plan including 2025 Comprehensive Plan update assessment of
buildable lands inventory/land capacity analysis.
• Revisit Tree Conservation Ordinance for private property and tree retention policies for right
of way.
• Complete Shoreline Master Program and Critical Area Ordinance updates.
• Develop strategic plan for housing, including housing assessment and inventory.
Finance Department
Provide required and desired financial reporting and practices, steward preparation and
collective oversight of balanced funds and budgets needs to ensure the success of all
departmental and organizational activities.
2025 Ke Goal:
Work closely with the City Council and City Leadership to deliver Council actions from
Financial Sustainability Initiative.
2025 Work Plan:
• Address streets, parks, facilities funding needs and prioritize investments, considering future
year priorities and phased investments.
• Revise budget schedule, process and reporting through improved processes and integrated
software.
Goal Statement:
To work in partnership with our community to provide a safe and compassionate environment
while reducing crime and the fear of crime.
2025 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 while
maintaining a high level of morale.
• 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.
2025 Work Plan:
• Sustainable staffing for Police Team
• Path to Accreditation
• Strategic Planning
• Chief's Cabinet/Advisory Forum
City of Port Townsend
CONTINGENCY FUND
RAINY DAY FUND
BUDGET SUMMARY
Contingency Fund
2022
2023
2024
2024
2025
Increase/Decrease
Rainy Day Fund
Actual
Actual
Actual
Budget
Proposed
2025 Proposed vs
2024 Budget
Beginning Fund Balance
200,828
202,060
202,965
202,965
254,579
Revenues
Taxes
Licenses & Permits
Intergovernmental Services
Uiarges for Goods & Services
Fines & Penalties
Misce"aneous Revenue
1,232
904
6,615
13,000
Other Increases
Other Financing Sources (inc. Transfers In)
45,000
45,000
12,000
-733%
total Revenue
1,232
904
51,615
45,000
25,000
-44.4%
Salaries & Wages & Benefits
Supplies
Services
capilm Outlays
Dnbt Service - Principal
Debt Service - Interest
Other Financing Uses (inc Transfers out)
Total Expenditure
Not Change in Fund Balance
1,232 904 51,615 45,000 25,000 -44.4%
Ending Fund Balance
202,060 202,965 254,579 247,965 279,579
Fund Balance must be less than
Assessed Valuation:
2,806,305,510
37.5 cents per $1,000
1,052,365
Fund Balance 2% of GF Rev
1.5% 1.4%---'', 1.7% 2.0% 1.7% FALSE
City of Port Townsend
ARPA American Rescue Plan Act Fund
BUDGET SUMMARY
2022 2023 2024
2024
2025 increase/Decrease
ARPA
2025 Proposed vs
Actual Actual Actual
Budget
Proposed 2024 Budget
Beginning Fund Balance
2,299,505 1,718,771
1„718„771
265,000
Revenues
'axes
Licenses & Permits
Intergovernmental Services
Charges for Goods & Services
Fines & Penalties
Miscellaneous Revenue
40.883 24,115
25.000
-100.0%
Other Increases
Other Financing Sources (inc. Transfers In)
2 756,388
Total Revenue
2,755,388 40,883 24,916
25,000
-100.0%
Expenditures
Salaries & Wages & Benefits
-
Supplies
Ser'wces
Capital Outlays
Debt Service - Principal
Debt Service - Interest
Other Financing Uses (inc. Transfers Out)
455,883 621,617 25,499
1,500,000
265,000 -82.3%
Total Expenditure
455,883 621,617 25,499
1,500,000
265,000 -82.3%
Net Change in Fund Balance
2,299,505 (580,734) (1,384)
(1,475,000)
(265,000) -82.0%
Ending Fund Balance
2,299,505 1,718,771 1,717,387
243,771
0
Sufficient to Meet Obligations
16.5% 11.8% 11.8%
1.9%
0 0 % %,�r.
City of Port Townsend
Library Fund Budget Detail and Summary
Library Fund
Beginning Fund Balance
Revenues
±"axes
I.,Bconsets & Permits
F tea'f}p��� usr nets rrataf Services
Chi, of e'm for Goods & Services
Fines & Penalties
Miscellaneous Revenue
Other Increases
Other Financing Sources (inc. Transfers In)
T"otaaf Revenue
Expenditures
6aInN es & Wages & Benefits
Capdal Outlays
Debt Service - Principal
Debt Service - Interest
Other Financing Uses (inc, Transfers Out)
Total Expenditure
Net Change in Fund Balance
Ending Fund Balance
Furnt Balance 5.8 % of Tax Raw,
City of Port Townsend
LIBRARY FUND
BUDGET SUMMARY
2022 2023...w._ 2024Wwµ M
Actual Actual Actual
523,690 610,946 644,959
1,155,744 1,185,069 892,528
8,233
1,135 1,099 1,199
9,849 26,044 55,201
1,166,728 1,220,445
614,872
100,869
363,117
614
1,079,472
87,256
610,946
52.9%
683,615
117,116
379,879
5,823
1,186,433
34,012
644,959
54.4%
2024 2025 Increase/Decrease
2025 Proposed vs
Budget Proposed 2024 Budget
,....w..644,95,„.....
...,,9 605,635
1,229,005 1,259,500 2.5%
33,700 96,500 186.4%
948,929 1,262,705 1,356,000
577,138
731,752
675,139
67,697
93,779
96,736
343,418
419,902
389,504
-
1,000
5,000
65,000
988,253
1,246,433
1,231,379
(39,324)
16,272
124,621
605,635
661,230
730,256
67.9 I
$3.8%
58.0 %
7.4%
-7.7%
3.2 %
-7.2%
400,0%
•1.2 %
665.9%
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, databases, a -books and e-audiobooks, children's
web resources, interlibrary loan
• Programs and events, including youth, teen, and adult programming.
• Staff response to patron requests and associated services
• Building strong relationships with community partners to deliver strong social and
emotional infrastructure to the community.
• Access to technology
• Access to services, collections, and spaces with diversity, equity, and inclusion
being paramount to library work
Link to library's strategic plan:
tt j�,//jatpttl iicli >r�: glgitp /( fgwiilI lee/ ilea t chm nt /librg y t goB1 �t a%strate
gimp Ianµ 2021 uP , ur � r 2024 t f
2025 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.
2025 Work Plan:
• Library Capital Projects: Pink House exterior restoration
• Help further produce "How Your City Works" programs and materials.
• Work through issues with financial sustainability, including options analysis on
balancing revenues and levels of service.
City of Port Townsend
REAL ESTATE EXCISE TAX FUND
BUDGET SUMMARY
2022 2023 2024
2024
2025
rrcreaserfiecrea
se
REET
Actual Actual Actual
Budget
Proposed
2025 Proposed
vs 2024 Budget
Beginning Fund Balance
801,111 1,203,130 1,335,631
1,335,631
1,266,011
Revenues
"faxes
941,896 695,361 492,539
675,000
650,000
-3.7%
Licenses & Permits
Intergovernmental Services
Charges for Goods & Services
Fines & Penalties
Miscellaneous Revenue
6,420 25,209 31,715
20,000
35,000
75.0%
Other Increases
0iw Financing Sources (inc Transfers In)
Total Revenue
948,316 720,570 524,255
695,000
685,000
-1.4%
Expenditures
Salaries & Wages & Benefits
Supplies
Somme$
CapDtal Outlays
Oetal Service - Principal
Debt Service - Interest
„
Offer Financing Uses (inc. Transfers Out)
546,296
588,069
593,875
704,700
897,355 27;;3019
Total Expenditure
546,296
588,069
593,875
704,700
897.355 27.3%
593,875
Not Change in Fund Balance
402,019
132,501
(69,620)
(9,700)
(212,355) 2089.2%
Ending Fund Balance
1,203,130
1,335,631
1,266,011
1,325,931
1,053,656
Sufficient to Meet Oblloatlnnsc
%=2l -!�
City of Port Townsend
Lodging Tax Fund Budget Detail and Summary
City of Port Townsend
LODGING TAX FUND
BUDGET SUMMARY
....�,.�,.._ww._.�..,.,......, w._ww............................_............�,.�,..�.�._.�..www_.._�...._._....�..._wv��._......w_wwww...............�„�w.�.....__,..�www__....................�,.,�w.w.....
2022 2023 2024 2024 2025 In..creaselDecrease
Lodging Tax 2025 Proposed vs
Actual Actual Actual Budget Proposed 2024 Budget
Beoinnina Fund Balance 415,629 721,406 1,006,981 1,006,981 1,250,331
Licenses & Permits
Intergovernmental Services
Charges for Goods & Services
Fines & Penalties
Miscellaneous Revenue
Other Increases
Other Financing Sources (inc. Transfers In)
Total Revenue
Expenditures
Salaries & Wages & Benefits
M Outlays
Service - Principal
Service - Interest
- Financing Uses (inc. Transfers Out)
Expenditure
Change in Fund Balance
Ending Fund Balance
602,167
640,736
528,096
525,000
600,000
14.3%
3,426
14,960
11,177
10,000
15,000
50.0%
605,593
655,696
539,273 ¢
535,000
615,000
15.0%
30,920
60,878
75,199
83,282
10.7%
149,641
212,117
'116,443
309,918
447,469
44.4%
25,175
12,500
14,435
20,000
67,000
2350%
125,000
_ 114,583
...
104,167
125,000
375,000
200.0%
299,816
370,121
295,923
530,117
972,751
63.5%
305,777
285,576
243,350
4,883
(357,751)
-7426.5%
721,406
1,006,981
1,250,331
1„011,864
892,580
Port Townsend Lodging Tax Advisory Committee's (LTAC`s) vision of sustainable tourism
is to reinvest community resources to enhance the lives of both residents and visitors.
2025 Key Goals:
• Gather and analyze data to use in planning and grant -making decisions.
• Support a balance of infrastructure and marketing investment.
• Build key relationships to further LTAC's vision of sustainable tourism
2025 Work Plan:
• Provide sustainable, long-term support to the Port Townsend Creative District with
partial funding for a staff position and programs;
• Continue the Community Marketing Grants program;
• Fund continued operations of a new model for Port Townsend Visitor Information
Services including an in -person hub at Fort Worden, a mobile greeter program
Downtown, event promotion via our readerboard, a new brand identity, and refreshed
website;
• Explore the path forward for a digital readerboard to replace analog readerboard;
• Increase downtown winter lighting;
• Hire consultant for Downtown economic impact study with a focus on tourism and
arts and culture;
• Begin planning for Downtown restroom and visitor kiosk project.
City of Port Townsend
AFFORDABLE HOUSING FUND
BUDGET SUMMARY
2022
2023
2024
2024
2025
Increase/Decrea
Affordable Housing
Actual
Actual
Actual
Budget
Proposed
2025 Proposed vs
2024 Budget
Beginning Fund Balance
87,658
83,535
113,046
113,046
77,556
Revenues
Taxes
92,688
21,329
16,013
30,000
18,140
-39.5%
Licenses & Permits
Intergovernmental Services
f.I'ta qos for Goods & Services
Fines & Penalties
Miscellaneous Revenue
375
78
77
100
Olhw Increases
OffierFinancing Sources (inc. Transfers In)
70,000
65,000
74,656
14.9%
Total Revenue
93,064
91,407
16,090
95,000
92,896
-2.2%
Expenditures
Salaries & Wages & Benefits
Supplies
Services
35,291
31,000
31,000
0.0%
Capital Outlays
Debt Service - Principal
Debt Service - Interest
OtI"agar Financing Uses (inc. Transfers Out)
61,896
61,896
51.580
61,896
61,896
0.0%
Total Expenditure
97,187
61,896
51,580
92,896
92,896
0.0%
Not Change in Fund Balance
(4,123)
29,511
(35,490)
2,104
-
-100.0%
Ending Fund Balance
83,535
113,046
77,556
115,150
77,556
Sufficient to Meet Oblinations
CDBG
Revenues
Taxes
Licenses & Permits
Intergovernmental Services
Charges for Goods & Services
Fines & Penalties
Wumflmmous Revenue
Other Increases
Other Financing Sources (inc. Transfers In)
Total Revenue
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
Ending Fund Balance
City of Port Townsend
COMMUNITY DEVELOPMENT BLOCK GRANTS
BUDGET SUMMARY
2022 2023 2024 2024
Actual Actual Actual Budget
2025 Increase/Decrease
2025 Proposed vs
Proposed 2024 Budget
189,433
15,718
18,341
23,347
20,000
23,000
995
937
6.870
5.000
16,713
19,278
30,217
20,000
28,000
20,935
19,378
20,000
20,000
20,935
19,378
-
20,000
20,000
(4,222)
(100)
30,217
8,000
159,317
159,216
189,433
159,216
197,433
15.0%
40.0%
0.0%
0.0%
City of Port Townsend
GENERAL OBLIGATION DEBT SERVICE
BUDGET SUMMARY
2022
2023
2024
2024
2025
tncreasetflecraas
G.O. Debt Service
e
Actual
Actual
Actual
Budget
Proposed
2025 Proposed vs
2024 Budget
Beginning Fund Balance
155,569
397,719
1,115,855
1,115„855
2,071,203
Revenues
Taxes
636,687
420,506
348,673
415,000
150,000
-63.9%
Ucon es & Permits
Intwgovennmental Services
_
Charges for Goods & Services
Fines & Penalties
Miscellaneous Revenue
6,874
15.971
20,443
10.000
22,501
125„0%
Other Increases
Other Financing Sources (Inc. Transfers In)
1,309,180
3,024,538
863,162
1,082,896
942,211
-13.0%
Total Revenue
1,952,740
3,461,014
1,232,278
1,507,896
1,114,712
-26.1%
Expenditures
Safaries & Wages & Benefits
SuPph es
Servsc e's
2,400
700
2,500
-100.0%
Capital Outlays
DebtService- Principal
1,286,413
2,190,265
198,165
542,580
605.513
11.6%
DehtService- Interest
421,767
551,914
78,765
523,100
509,199
-2.7%
Other Financing Uses (inc. Transfers Out)
Total Expenditure
P
1,710 580
2 742,879
29
276,9.
..
1,068,180
..._ 2
1,114,712
4.4%
Net Change in Fund Balance
242,160
718,136
955,348
439,716
-
-100.0%
Ending Fund Balance
397,719
1,115,855
2,071,203
1,555,571
2,071,203
Sufficient to Meet Oblioatlons
�
City of Port Townsend
Combined - Community Services Fund Budget Detail
Community Services - Parks Fund
Facilities Replacement & Reserve Fund
ct)
A.rts.. Component (PTAC, Creative Distri..... _........ ......
City of Port Townsend
COMMUNITY SERVICES FUND
BUDGET SUMMARY
2022
2023
2024
2024
2025
Increase/Decrease
Community Svs
2025 Proposed vs
Actual
Actual
Actual
Budget
Proposed
2024 Budget
Beginning Fund Balance
535,955
594,848
703,032
703,032
1,224,598
Revenues
Taxes
599,812
231,550
214.550
247,000
279,148
13.0%
Licenses & Permits
Intergovernmental Services
100,000
(100,000)
Charges for Goods & Services
5.735
50,775
27,997
55,000
1,500
-97.3%
Fines & Penalties
-
Miscellaneous Revenue
79,588
62,856
73,907
79,550
67,000
-15.8%
Other Increases
24,958
15,650
15,320
21000
17,500
775.0%
Other Financing Sources (inc. Transfers In)
1,285,607
2,259,521
2,228,488
2.633,462
2,908,531
10.4%
Total Revenue
2,095,700 ®
2,520,353
2,560,261
3,017,012
3,273,679
8.5%
Expenditures
Salaries & Wages & Benefits
825,003
1,021,085
838,305
1,296,743
1,204,846
-7.1%
Supplies
169,250
229,896
168,720
222,056
295,126
32.9%
Services
925,954
1,068,859
910,203
1,262.060
1,623.707
28.7%
Capital Outlays
31,954
77,116
87.167
105,996
90,000
-15.1%
Debt Service - Principal
-
Debt Service - Interest
Refundable Deposits
81,511
15,212
15,300
Other Financing Uses (inc. Transfers Out)
3 259
_...-_,9
19 000
....6, ...
60,000
_.... ...._,9
Total Expenditure
P
2 036,931,
2,.,
412,169
038,.9
2,038,695
2 886,856
3,273,679
13.4%
Net Change in Fund Balance
58,769
108,183
521,566
130,156
-100.0%
Ending Fund Balance
594,723
703,032
1,224,598
833,188
1,224,598
,'
Fund Bal. 2-3 °/ of Expenditures
_....w �www
.-.-.._._...-._w�.
_w--._.......-✓�
;, : „
Community Services Fund - Expenditures by
Department
City Facilities
601,174
872,933
758,578
1,117,430
1,232,430
10.3%
Mountian View Facilities
174,725
161,333
157,879
180,101
221,101
22.8%
Parks Maintenance
654,839
785,181
403,046
764,311
1,093,896
43.1%
Parks Strategy
-
273,424
273,424
124,427
-54.5%
�Events
320
-
2,998
5,000
-100.0%
Pool
390,001
343,215
277,067
366,389
368,325
0.5%
Non -Departmental (inc. Transfers Out)
84,321
53,691
36,825
12,000
233,500
1846,8,%„
Total Expenditures
1,905,380
2,216„353
1„909,817
2,718„656
3„273,679
20.4%
Goal Stajgmgnt.
Proposal: A combined Community Services (Parks, Facilities) and Library department (the
library is a separate fund) with the addition of an arts and culture element to oversee the existing
PT Creative District.
Ultimately the reason for the change is for better, more integrated, more stable delivery of
services to our community — with inclusive programming for all ages and an emphasis on youth
and families. There are many elements to the why, including how we enhance each team and
set ourselves up for sustained success.
The City of Port Townsend Community Services Department is responsible for managing and
maintaining city buildings and parks, stewarding the pool contract with the YMCA and the golf
park contract for operations, and stewarding leases on the Mountain View Campus. The mission
of the Department is to provide safe, equitable, and inclusive access to parks, recreation, and
city facilities that strengthen the bonds of the community by enriching and enhancing the quality
of life for the Port Townsend community. Additionally, we look to be stewards for self-sustaining
urban and community forestry programs that look to preserve, establish and maintain trees,
forest and understory for the community and increase the quality of life.
2025 K2 goals.
• Create an integrated Community Services Department that combines Parks, Facilities,
Library, and Arts.
• Add the PROS plan to the Comprehensive Plan update.
• With the addition of two new full-time staff in a dedicated custodian and a new city-wide
electrician our facilities team will continue to work towards improving efficiency and
effectiveness of preventative maintenance as well as system repairs.
• 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 an additional full-time employee for janitorial support
included in this year's budget proposal. This strategy will provide time for skilled employees
to perform proactive maintenance and special projects such as small remodels 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.
• Develop an urban forestry program.
• Continue to implement building repair and remodel projects.
• Develop sustainable park funding and strive for equitable distribution of funds in parks and
trails.
• Implement decisions made around the future of the aquatics/community health and wellness
center.
2025 Work Plan:
The division also will complete repairs of the Pink House and Pope Marine for restoration
opportunities.
• The facilities division will invest in ADA upgrades to the Council Chambers elevator street
access door.
• The facilities division will support investments of grant funding for upgrades to the library.
• The parks division will complete the kitchen shelter project based on the 2022 banked
capacity funding.
• The parks division will contract for a master plan for a future neighborhood park on property
located near Madrona Ridge.
• The facilities division seeks to perform a buildings assessment and capital improvement plan
to better understand investment needs based on proactive maintenance and develop a
model for a facilities repair and replacement fund.
• With the new addition of caretaker, the parks division has the goal of rehabilitating the Kah
Tai restrooms.
• 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 will continue to further 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.
• Participate in open space planning and the Non -Motorized Plan update associated with the
Comprehensive Plan update.
• Perform asbestos abatement in preparation for demolish the Golden Age Club and Parks
House buildings which have fallen into disrepair.
• The parks division will begin the process of removing poplars along Sims Way in Kah Tai
nature park according to the updated Gateway Development Plan.
• As part of the periodic Comprehensive Plan update, the PROS plan will be updated as well
to meet State requirements and maintain eligibility for RCO.
• The ADA transition plan will be updated for parks
• Create a new Arts & Culture position funded in part by LTAC.
• PT Main Street transitions the stewardship of the Creative District to the City under the
enhanced Community Services Department
• Plan an integrated All Staff Day for teambuilding and staff training for the Parks, Facilities,
Library, and Arts staff.
City of Port Townsend
GENERAL CAPITAL IMPROVEMENTS
BUDGET SUMMARY
2022 2023 2024 2024 2025 ncroasa soma
General Capital Improvements 2025 Proposed
Actual Actual Actual Budget Proposed vs 2024 Budget
saxes
Licenses & Permits
Intergovernmental Services
Orwrger, for Goods & Services
Fines & Penalties
fi srellaneous Revenue
Other Increases
Other Financing Sources (inc. Transfers In)
Total Revenue
& Wages & Benefits
Capitat Outlays
Debt Service - Principal
Debt Service - Interest
Retainage Disbursements
Other Financing Uses (inc. Transfers Out)
Total Expenditure
Net Change in Fund Balance
Ending Fund Balance
Sufficient to Meet Obligations
500.000
179,533
196,450
20,382
14,101
1,130
7,500
1,500
-80„0%
(1,490)
248,820
736,257
989,413
919.807
1,164,249
26.6%
767,712
929,891
990,543
927,307
1,362,199
46.9%
24,808
18,630
15,525
18,630
18,630
0.0%
190,054
1,366,482
442,691
923,421
1,303,254
411°/
(2,004)
289,362
-
212,858
1,385,112
747,579
942,051
1,321,884
40.3%
554,854
(455,220)
242,965
(14,744)
40,315
-373.4%
560,515
95,586
338,551
991,280
378,866
City of Port Townsend
STREET CAPITAL IMPROVEMENT FUND
BUDGET SUMMARY
lb
2022 2023 2024 2024 2025 increaseecrease
Street Capital Improvement Actual Actual Actual Budget Proposed 2025 Proposed
vs 2024 Budget
Revenues
Taxes
Licenses & Permits
Intergovernmental Services
Charges for Goods & Services
Fines & Penalties
0scetlarmous Revenue
Other Increases
Other Financing Sources (inc. Transfers In)
Total Revenue
& Wages & Benefits
Capital Outlays
Debt Service - Principal
Debt Service - Interest
Retainage Disbursements
Other Financing Uses (Inc. Transfers Out)
Total Expenditure
Not Change in Fund Balance
Ending Fund Balance
Sufficient to Meet Obligations
461.383
373.723
2,724.174
4.981.146
2.508,608
-49,6%
10,000
355
6.725
10,895
187.500
33,000
-82.4%
2.055
-
?4? §Q7
1,002,352
4,586,557
1,169,893
613,355
-47,6%
706,299
1,382,800
7,321,627
6,338,539
3,164,963
-50.1%
45,182
34,978
29,148
34,978
34,978
0.0%
572,778
676,194
4,515,204
5,535,510
3,926,510
-29.1%
4,576
478702
622,536
711,172
7,023,055
5,570,488
3,961,488
-28.9%
83,763
671,629
298,572
768,051
(796,525)
-203.7%
124,173
795,802
1,094,374
1,563,853
297.849
City of Port Townsend
Stormwater Operations Fund Budget Detail and Summary
City of Port Townsend
STORMWATER OPERATIONS
BUDGET SUMMARY
Stormwater
2022
Actual
2023
Actual
2024
Actual
2024� M
Budget
2025
Proposed
Beginning Fund Balance
738,472
677,661
510,609
510,609
408,345
Revenues
Taxes
„
Licenses & Permits
Intergovernmental Services
Charges for Goods & Services
1,236,391
1,239,893
1,239,386
1,209,324
1,425,000
Fines & Penalties
Miscellaneous Revenue
6,015
15,362
21,244
14,500
20,000
C' Mef Increases
Other Financing Sources (inc. Transfers In)
Total Revenue 1,242,406 " 1,255,255 1,260,630 1,223,11 824 1,445,011 00
Expenditures
Salaries & Wages & Benefits
Supplies
Services
Capital Outlays
Debt Service - Principal
Debt Service - Interest
Other Financing Uses (inc. Transfers Out)
Total Expenditure
Change in Fund Balance
Fund Balance
of 006ratlno
Stormwater Operations
Goal Statement:
311,131
330,071
315,379
461,731
413,929
36,701
67,174
63,300
82,539
79,527
449,786
438,759
427,799
535,601
484,712
9,033
6,000
6J1�00
49,225
50,702
52,223
60,000
50,702
32,136
30,660
29,139
40,000
30,660
415,205
504,941
475,055
715,515
364,442
1,303,217
1,422, 307
1,362,895
1,901,386
1,429,972
(60,811)
(167,052)
(102,264)
(677,562)
15,028
677,661
510,609
408,345
(166,953)
423,373
190
131
109
(32)
108
2025 Proposed vs
2024 Budget
17,8%
37.9%
18.1 %
-10.4%
-3.6%
-9.5%
0.0%
-15.5%
-23.4%
-49 1 %
-24.8°%
-102.2%
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.
2025 Key Goals:
• The Streets division continues to transition the shift of resource investment from vegetation
control to street repair. Stormwater management is a key function that needs to be restored
prior to street investments. The division will spend considerable time in 2025 working on
restoring ditches and making small drainage improvements.
City of Port Townsend
w ...... Sewer Operations Fund Budget Detail and Summary
Water &
City of Port Townsend
WATER/SEWER OPERATIONS
BUDGET SUMMARY
Water Sewer Op
Beginning Fund Balance
Revenues
Taxes
Licenses & Permits
Intergovernmental Services
Charges for Goods & Services
Fines & Penalties
Miscellaneous Revenue
Other Increases
Other Financing Sources (inc. Transfers In)
Total Revenue
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
Ending Fund Balance
60 Days of Operating Expenses
Water Sewer Fund - Expenditures by Department
2022 2023 2024 2024 2025 Increase/Decrease
2025 Proposed vs
Actual Actual Actual Budget Proposed 2024 Budget
3,713,169 4,088,263 M1XM1M1M1M1wNN 5,020,708 5,020,708 6,191,132
T480,449 8,295,876 8,459,493 9,110,005 9,840,000
127,465
240,444
325,064
362,500
248,500
60,000
1,855,334
1,511,430
1,139, 518
1,243, 581
37,500
9,523,247
16,047,750
9,923,881
10,716,086
10,126,000
2,331,251
2,412,171
2,176,836
3,086,303
3,253,352
523,532
525,865
368,615
624,452
659,245
3,958,482
4,389,673
3,825,249
5,167,530
4,833,976
46,109
84,441
54,719
487,727
512,320
1,246, 889
1,181, 901
1,093,906
1,130,653
1,122, 053
164,920
154,262
125,195
153,613
148,604
876,970
366,991
1,108,936
1,359,309
3,168,200
9,148,153
9,115,304
8,753,457
12,009,587
13,697,750
375,094
932,446
1,170,424
(1,293,501)
(3,571,750)
4,088,263
5,020,708
6,191,132
3,727,207
2,619,382
163
201
258
113
70
Utility Billing
42
597,390
Water Disribution
403
3,279,323
Water Quality / WTF
404
2,147,383
Wastewater Treatment
405
1,516,143
Wastewater Collection
406
1,088, 510
Biosolids
407
519,405
Non -Departmental (inc. Transfers Out)
000
Total Exoenditures
9,148,153
8.0%
-31.4%
-97.0%
-5.5%
5,4%
5.6%
-6.5%
5.0%
-0.8%
-3.3%
133.1 %
14.1 %
176.1 %
687,878
870,530
804,864
768,175
-11.8%
3,156,287
3,286,063
3,901,190
4,365,384
32.8%
2,140,141
1,996,651
3,008,112
2,999,675
50.2%
1,643,775
1,356,109
2,475,839
2,711,915
99,7%
923,609
739,255
1,088,776
2,069,565
180.0%
563,615
502,848
730,807
783,036
55.7%
9,115,304
8,753,457
12,009,587
13,697,750
56.5%
The water/sewer operating fund shows a decrease in fund balance due to transfers out to support
Water and Sewer Capital (Fund 415). In 2024 the City Council adopted new sewer rates that look
forward to funding the needed repairs in the sewer collection and treatment systems in the city.
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.
2025 Key 02@1;
• The water division of public works will seek to implement the new cross connection program
adopted by the City Council in 2022 as required by the Washington Administrative Code.
• The water division will continue replacing aging pipelines to make the system more reliable
and minimize distribution system leakage.
• The water division will begin to implement the first year of five to replace all of the water
meters across the city.
• 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 will be implementing new sewer rates and begin to implement capital
improvements identified in the sewer plan.
• The collections division will implement a rigorous sewer inspection program to prioritize pipe
rehabilitation investments.
• The wastewater division will begin implementing a number of key capital projects resulting
from the General Sewer Plan
• The wastewater division will work with the County on expanding septage handling at the
Compost Facility
2025 Work Plan:
• The work plan for the water division is mostly focused on capital projects,
• The water division has several capital projects such as the OGWS pipeline assessment,
Lords Lake East Dam stability improvement design, 1 MG standpipe coating design, cathodic
protection of the OGWS, landslide mitigation and pipeline support at Snow Creek, and
rehabilitation of the control valve structure at the Big Quilcene Diversion.
• The water division will begin the process of system wide meter replacement.
• The work plan for the wastewater division is focused on capital projects such as the outfall,
Water Street sewer replacement, Mill Road Lift Station, and Wastewater Treatment Plant
rehabilitation projects. , .
• The wastewater division will begin the process of purchasing additional land near the WWTP.
• The Wastewater Treatment operators will coordinate plant operations around treatment plant
projects. This adds additional challenges to operations.
• Both the water and wastewater division will evaluate replacement and/or rehabilitation of pipe
associated with street repair projects such that pipes are evaluated before paving.
• Capital improvements on the stormwater system are also necessary. Much of the stormwater
infrastructure is lacking or in a state of disrepair. Lawrence Street stormwater is piped into
the Sanitary Sewer System and thus a new pipeline is needed in Lawrence Street. The city
received a loan/grant to design this project.
• The new stormwater rates provide an urban forestry fee. These fees will help plant and
replace trees to enhance mitigation measures of the effects of impervious surface.
2025 Work Plan:
• Staff will complete the 60% design for the Lawrence Street stormwater system project.
• The stormwater improvements associated with the banked capacity street repairs were
initiated in 2023 and will be completed in 2025.
• Staff will support the installation of rain gardens by community members.
...........
City of Port Townsend
STORMWATER CAPITAL
BUDGET SUMMARY
2022 2023 2024 2024 2025 Increase/Decrease
Stormwater CIP I Actual Actual Actual Budget Proposed 2025 Proposed vs , 2024 Budget
IBeginning Fund Balance 580 26,773 197,064 197,064 193,743 1
Licenses & Permits
tntwguvernrner,PW Services
Charges for Goods & Services
Fines & Penalties
Miscellaneous Revenue
Other Increases
Other Financing Sources (inc Transfers In)
Total Revenue
& Wages & Benefits
CoIntal, Outlays
Debt Service - Principal
Debt Service - Interest
Other Financing Uses (inc. Transfers out)
Total Expenditure
Net Change in Fund Balance
Ending Fund Balance
Sufficient to Meet Obliaaflons
351
77
67
102,836
200,000
260,000
598,655
90,000
-850%
103,187
200,077
260,067
598,655
90,000
-85.0%
22,185
29,510
10,000
3,389
-66.1%
54,809
276
47,711
598,665
90,000
-85.0%
215,677
76,994
29,786
263,388
608,665
93,389
-84.7%
26,194
170,291
(3,321)
(10,010)
(3,389)
-66.1%
26,773
197,064
193,743
190,355
Water Sewer CIP
Beginning Fund Balance
Revenues
Taxes
Licenses & Permits
Intergovernmental Services
Charges for Goods & Services
Fines & Penalties
Misc,Olanoous Revenue
Other Increases
Other Financing Sources (inc, Transfers In)
Total Revenue
Expenditures
Salaries & Wages & Benefits
Capital Outlays
Debt Service - Principal
Debt Service - Interest
Retainage Disbursements
Other Financing Uses (inc. Transfers Out)
Total Expenditure
Not Change in Fund Balance
Ending Fund Balance
Sufficient to Meet Obligations
City of Port Townsend
WATER SEWER CAPITAL
BUDGET SUMMARY
2022 2023 2024 2024 2025 increasewecreasc
2025 Proposed vs
Actual Actual Actual Budget Proposed 2024 Budget
72,405
4,302
5,000
1,920,000
38300,0%
1,972
82
107
4,314,900
4,284,310
-0,7%
62,715
989,898
1,505,194
2,975,315
6,306,400
112.0%
1,671,203
1,062,385
1,509,603
7,295,215
112,6110,710
71.5%
24,895
17,917
14,931
17,917
-
100,0%
1,624,816
1,109,442
1,394,112
7,581,298
12,541,313
65.4%
4,061
1,653,772
1,127,359
1,409,043
7,599,215
12,541,313
65.0%
17,430
(64,975)
100,560
(304,000)
(30,603)
-89.9%
91,829
26,854
127,414
96,811
City of Port Townsend
. .........
. ......
Olympic Gravity Water System (OGWS)
BUDGET SUMMARY
Olympic Gravity Water System
2022
2023 2024
2024
1625-
Incroasell - to I a .1 a - a —
Actual
Actual Actual
Budget
Proposed
2025 Proposed vs
Beginning Fund Balance'
545,056
1,837,082 6,710,703
5,710,763
8,95,5V
2024 Budget
Revenues
I axes
Llcen",s & Permits
Services
86,900
-100.0%
Charges for Goods & Services
2,464,976
4,733.337 4,115.082
5.043,382
4,900,000
-2.8%
Fines & Penalties
Ksceflaneous Revenue
130
60,997 61,831
105,000
75,000
-26.6%
Other Increases
Other Financing Sources (inc. Transfers In)
Total Revenue2,485,108
4.. .... ....... 4-,17 —6,913
5,23-5,262
4,975, 000
-5.0%
Expenditures
Salaries & Wages & Benefits
Suppties
SeNicos
628,024
902,755 534,755
1,175,646
13,134
-989%
Capital outlays
Geb� Service - Principal
Metal Service - Interest
Offier Financing Uses (inc. Transfers Out)—
. . .....
373,3133 . ....... — -----
1,62M00
82.7%
Total Expenditure
1,173,080
920,653 908,138
2,065,745
1,639.134
-20.7%
Net Change in Fund Balance
1,292,026
3,873,681 3,268,774
3,169,537
3,335,866
5.2%
Endina Fund Balance
4 A147 hal
1. — 1—
City of Port Townsend
GOLF COURSE FUND
BUDGET SUMMARY
Golf Course
2022
Actual
2023
Actual
2024
Actual
2024
Budget
2026
Proposed
Increase0acrease
2025 Proposed vs
2024 Budget
Beginning Fund Balance
5,484
2,500
2,151
2,161
7,776
Revenues
Taxes
L wwises & Permits
tntergovernmenkal Services
Charges for Goods & Services
Fines & Penalties
Miscellaneous Revenue
8,041
10,376
3,899
16,000
-1000%
Other Increases
Other Financing Sources (inc. Transfers In)
5,000
11,000
5,000
31,000
181,8%
Total Revenue
8,041
15,376
14,899
21,000
31,000
108.1%
Expenditures
Salaries & Wages & Benefits
Supplies
177
16,000
Services
10,849
15,724
9,274
5,000
31,000
2343%
Capital Outlays
Debt Service - Principal
Debt Service - Interest
00ior Financing Uses (inc, Transfers Out)
Total Expenditure
11,026
15,724
9,274
21,000
31,000
234.3%
Net Change In Fund Balance
(2,984)
(349)
5,625
-
-100.0%
Ending Fund Balance
2,500
2,151
7,776
2,151
7,776
Sufficient to Meet Obfi(lations
City of Port Townsend
Equipment Rental & Replacement Fund Budget
Detail and Summary
M,,
City of Port Townsend
FLEET REPLACEMENT FUND
BUDGET SUMMARY
Fleet Replacement
2022
2023
2024
2024
2025
Increase/Decrease
Actual
Actual
Actual
Budget
Proposed
2025 Proposed vs
.............................................�.„...,.,...
..-.....,�....__.w.................
2024 Budget
vFund Balance
1,860,903
2,133,591
2 187,918
2,187,918
2,592,390
Revenues
Tows
Licenses & Permits
Intergovernmental Services
Ciuwrges for Goods & Services
253,867
281,836
333,428
400,113
-100.0%
l"Iwrm!ws & Penalties
N, scr,ila mmu s Revenue
19,627
48,063
67.149
35,000
65,000
-3.2%
Other Increases
D fuwwu Financing Sources (inc. Transfers In) 490,000 490,000 490,000 0.0
Total Revenue 273,494 ® 329,899 890,577 925,113 555,000 -37.7%
Salaries & Wages & Benefits
„
Supplies
„
Services
Capital Outlays
806
275,572
486,105
535,000
1,143,000 135.1
Debt Service - Principal
Debt Service - Interest
l" Weq Financing Uses (inc. Transfers Out)
Total Expenditure
806
275,572
486,1051
5135,000 --1111111
111 ,143,000 135.1
Not Change in Fund Balance
272,688
54,327
404,472
390,113
(588,000) -245.4
Ending Fund Balance
2,133,591
2,187,918
2,592,390
2,578,031
2,004,390
Sufflclent to Meet Oblioat&oos,
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.
2025 Key Goal:
• Purchase of a new Elgin Street Sweeper, loader for the compost facility, backhoe for water
distribution, three pickup trucks and adding one hybrid motor pool car. Additional purchases
may be necessary depending on budget availability for multiple other supporting equipment.
• Subject to funding, purchase of a small equipment trailer and tac trailer for pavement repairs.
2025 Work Plan:
• Work with the General Fund divisions and the Community Services Department options for
development of a sustainable funding program for vehicle replacement. Currently, the
budget proposals include making sure that any new vehicles are placed on replacement.
The budget also includes infusion 2 of 5 to return general fund vehicles to the replacement
program for fiscal sustainability.
• Continue to evaluate implementation of electric vehicle conversion.
♦ tr 0 tf r "" •
City of Port Townsend
IT REPLACEMENT FUND
BUDGET SUMMARY
2022
2023
2024
2024
2025
Increase/Decrease
IT ERR
2025 Proposed vs
Actual
Actual
Actual
Budget
Proposed
2024 Budget
9 _wwww9wwwww_.. ......-w
Be innin Fund Balarsce
_..,�--ww.
40,885
_57,9_8"' .........................
57,985
92„2T
92,207
103,617
Revenues
Taxes
Licenses & Permits
Intergovernmental Services
Charges for Goods & Services
67,167
86,500
38,833
46,600
46,050
18.6%
Fines & Penalties
Miscellaneous Revenue
328
71
22
-100.0
Other Increases
Other Financing Sources (inc. Transfers In)
...... ..... .
. ..
_ .
Total Revenue
67,495 w
86,571
38,855
46,600
46,050
18.5%
Expenditures
dardos & Wages & Benefits
„uaPW36ers
",
..
ServOt,as"4
-
Ds p4jl Outlays
50,395
52,349
27.445
33,350
35,250
28.4%
Deist Service - Principal
Debt Service - Interest
(',ttfier Financing Uses (inc. Transfers Out)
Total Expenditure
50,395
52,349
27,445
33,350
35,250
28.4%
Net Change in Fund Balance
17,100
34,222
11,410
13,250
10,800
-5.3
Ending Fund Balance
57,985
92,207
103,617
105,457
114,417
Sufficient to Meet Oblinations
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 division replaces technology equipment across all City
departments based on equipment age and functional needs.
2025 Key Goal:
• Support departments at all levels with technology needs through computer hardware,
software programs and technology -related projects.
• Achieving Information Technology goals is reliant on maintaining two full-time employees for
network and information technology support.
2025 Work Plan:
• Improve IT infrastructure, robustness, and cybersecurity.
• Support the City's preparedness for disasters, including support of a continuity of operations
plan.
City of Port Townsend
Public Works Administration Fund Budget Detail and Summa
City of Port Townsend
PUBLIC WORKS ADMINISTRATION
BUDGET SUMMARY
PW Admin (Internal 2022 2023 2024 2024 2025 rncreaseruecreas
e
Service Fund)
Actual
Actual
Actual
Budget
Proposed
2025 Proposed vs
... ....v..--____.. _,w,....
__...w. ...._
_.-www,_......_..__w,,,
2024 Budge„t
VMrrrVn F._
Beginning and Balance
90,290
139,877
280,346
_w.... .........
280,346
.. w_w..
470,595
.._
Revenues
Taxes
Licenses & Permits
Intergovernmental Services
Charges for Goods & Services
540.445
601,983
566,954
680,345
680,345
20.0%
Fines & Penalties
Miscellaneous Revenue
740
90
174
7,500
1,500
761.8
Other Increases
Other Financing Sources (inc. Transfers In)
180,000
.. ,,
180,000
Total Revenue
541,185
602,073
567,128
867,845
861,845
52.0%
Expenditures
WarOes & Wages & Benefits
387,578
288,716
271,528
520,643
564,265
107.8
Sup lws
3,898
1,733
3,665
6,652
6,652
81,5%
Services
100,122
171,155
101,687
339,259
159,784
57.1
Capital Outlays
1,000
2,500
Debt Service - Principal
Debt Service - Interest
Other Financing Uses (inc. Transfers Out)
Total Expenditure
491,598
461,604
376,879
867,554
733,201
94.5%
Net Change in Fund Balance
49,587
140,469
190,249
291
128,644
-32.4
Ending Fund Balance
139,877
280,346
470,595
280,637
599,239
Sufliclent to Meet Oblivaations
MYWN,
Goal Staternent:
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.
2025 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.
• Develop GIS program as an overhead based program to support all city operations and data
management.
• Support the implementation of key strategic projects including supporting economic
development.
2025 Work Plan:
• 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 Periodic update of the City's Comprehensive Plan.
• Support the engineering department in the update of engineering standards
• Support the Administration and Finance Departments in the implementation of the Financial
Sustainability Task Force Report
• Support the HR Department with training and skills development program.
• Support implementation of the Comprehensive Streets program, particularly associated with
banked capacity projects.
• Serve as support to the Parks Recreation Trails and Tree Advisory Board.
• Support Planning and Community Development Department in Open Space Planning and
Buildable Lands Inventory as part of the Comprehensive Plan periodic update.
• Help implement capital Projects
• Support implementation of the Water Supply Agreement projects and coordination.
• Support the Mill Road roundabout planning and funding acquisition in partnership with
WSDOT and Jefferson County.
• Support Sims Way and Boatyard Expansion project in cooperation with the Port of Port
Townsend.
• Participate in the Solid Waste Advisory Committee as a representative of Port Townsend.
• Manager the Solid Waste Collections contract
• Support work with Jefferson County regarding Glen Cove UGA expansion possibilities.
City of Port Townsend
Street Operations Fund Budget Detail and Summa
City of Port Townsend
STREET FUND
BUDGET SUMMARY
22
2023
2024
2024
2025
BrXcteased'Clenr'atame
Street Fund
Actual
Actual
Actual
Budget
Proposed
2025 Proposed vs
9 Fund Balance".._�,,,..-................._....-...�._......,..-......-.„
474.................,-.-,........�....-�,.,..,�...._.�,.,,,
400
479,484
v-v-�,......._...�..g,466
299,466
......,....-......_...»w.._...--.
9
276,010
... 2024 Budget
M._..............w.w.......M�_...m.
Revenues
Taxes
Licenses & Permits
231
,
Intergovernmental Services
205,329
203,894
160,646
400,000
214,000
-46.5%
Charges for Goods & Services
1,056
695
672
-
750
Fines & Penalties
Miscellaneous Revenue
7,164
8,326
7,397
„
7,500
7,500
0.0%
(',kGdtw" Increases
_
01hor Financing Sources (inc Transfers In) _ 7 _ 2
1,363,503 o
total Revenue 1,036,871,950,493 1,452,133 1,771,003 1,560,962 -1�
1.9
Sulrtmm'Ws & Wages & Benefits
185,117
228,883
191,135
286,828
306,567
6,9%
supphes
73,981
119,536
81,099
126,928
136.185
7.3%
Swarvhces
515,645
572,926
474,174
685,110
744,060
8,6%
Capital Outlays
77,901
143,406
249,750
244,501
120,000
-50.9 %
Debt Service - Principal
Debt Service - Interest
Other Financingit Uses (inc. Transfers Out)
„
70 843
209 150
22
Total Expenditure
1 031,794
1,330,-
1 475,520
1,614,210
1,515,962
-6.,1��
1
Net Change in Fund Balance
5,064
(180i,417)
(23,387)
156,793
45,000
Endtnq Fund Balance
479,484
299,466
276,079
456,259
321,079
Fund Sol, 2 3 % of Ex enxfituXns
...,..-.�:....................
._._........_...,....r4
f0 5..,.._
'22.."e"a"a
_.
18.7%
28.3'1ia
21.2% a
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.
2025 Key Goal:
• A primary goal of this division is to continue to increase investment on drainage and street
repairs. This will involve drainage control work and moving to hot mix asphalt patching
compared to cold mix pothole repairs. This transition was successful in 2023 with investment
of banked capacity (property tax) into a number of City streets that have fallen into disrepair.
• Another primary goal is to implement the General Sewer Plan with methodic inspection and
to begin to rehabilitate the aging sewer collection system.
2025 Work Plan:
• The division will continue complete the 2022 and 2023 banked capacity road restoration
projects..
• Implement the Comprehensive Streets Program through investment of new revenue
associated with the Transportation Benefit District.
• Perform annual hot spot pavement repairs.
• Support an arterial street chip seal preservation project.
• Support overlay of Tyler Street
• Begin systematic sewer inspection program with new video camera documentation
equipment..
• The street division works closely with the engineering division to implement a number of
projects throughout the year. Please refer to the engineering writeup for more details.
• Continue to implement a newly developed city-wide ditch maintenance program. This
program strives to correct drainage deficiencies ahead of paving project to prevent premature
deterioration of pavement due to saturation of the underlying soils.
City of Port Townsend
TRANSPORTATION BENEFIT FUND
BUDGET SUMMARY
2022 2023 2024
2024
2025
IncreaseflDecrease
Transportation Benefit
2025 Proposed vs
Actual Actual Actual
Budget
Proposed
2024 Budget
Beginning Fund Balance
12,859
Revenues
Taxes
� 528,859
626,500
1,200,000
91.5%
Licenses & Permits
Inlergovernmenal Services
Charges for Goods & Services
Fums & Penalties
MiscAaila ,ous Revenue
OtherIncreases
Other' Financing Sources (inc. Transfers In)
:......_
"total Revenue
_...
- - , 528859
626500
,
1200�
, ,000
91.5%
Expenditures
Salaries & Wages & Benefits
Supplies
Services
Capital Outlays
;Debt Service - Principal
Debt Service - Interest
Other Financing Uses (inc, Transfers Out)
516,000
626,500
621,000
Total Expenditure
516,000
626,500
621,000
-0.9%
Net Change in Fund Balance
12,859
579,000
Ending Fund Balance
12,859
591,859
Fund Bal. 2-3 % of Expenditures
0.0% 0.0% 2.5%
0.0%
95 3 /° /l% R 0,"i �,✓
City of Port Townsend
Engineering Fund Budget Detail_ and Summary
Engineering
Internal Service Fund
Revenues
Taxes
Licenses & Permits
Intergovernmental Services
Charges for Goods & Services
Fines & Penalties
Miscellaneous Revenue
(>thae# Increases
Other Financing Sources (inc. Transfers In)
Total l Revenue
SaaiaYa0es & Wages & Benefits
Supphes
Services
Capital Outlays
Debt Service - Principal
Debt Service - Interest
Other Financing Uses (inc, Transfers Out)
Total Expenditure
Net Change in Fund Balance
Ending Fund Balance
Engineering
City of Port Townsend
ENGINEERING FUND
BUDGET SUMMARY
2022
2023
2024
2024
2025
Increase/Decrease
2025 Proposed vs
Actual
Actual
Actual
Budget
Proposed
o
zoza Budget
56,459
71,900 ITITIT
_
w111,027
'1'11,027
_
236,065w_m_..._.www_
752,563
973,767
1,042,050
1,879.091
2,298,982
120.6%
267
104
281
-100.0 %
0,981
752,830 r
982,852
1,042,331
1,879,091
2,298,982
120.6%
557,838
740,370
768,291
987,964
1,114,548
45 1 %
4,490
3,342
3,487
10,799
13,299
281.4%
159,967
171,548
142,460
207,101
269,509
89.2%
15,094
28,465
3,055
9,000
53,000
1634.9%
737,389
943,725
917,293
1214,864
1,450,356
58.1%
15,441
39,127
125,038
664,227
848,626
578.7%
71,900
111,027
236,065
775,254
1,084,691
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 departments.
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.
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.
2025 Key Koala:
• Become fully staffed if not accomplished in 2024.
• Support other divisions such as the Planning and Community Development Department in
development review and comprehensive planning.
• Engineering provides administration and design services in the deliver Capital Projects.
Many projects are behind schedule. New staffing will help get projects completed.
• Support Public Works Division with operations
• Support traffic safety, traffic calming, and street right of way management.
2025 Work Plan:
• Support the parking meter pilot project installation in Downtown.
• Deliver a number of transportation, water, sewer, and stormwater capital projects. (See
capital budgets).
• Improved development review and infrastructure inspection in coordination with the Planning
and Community Development Department.
• Support the Planning and Community Development Department during the Comprehensive
Plan update.
• Lead an update to the Non -motorized Plan.
• Perform an arterial street cohesive investment strategy.
• Update of engineering standards and related codes.
• Develop a streets master circulation plan.
• Continued development of a city-wide infrastructure extension plan for 2025 code updates.
• Move to a digital office and records management through training and use of digital resources
in coordination with the public records officer.
City of Port Townsend
SYSTEM DEVELOPMENT CHARGES
BUDGET SUMMARY
2022 2023
2024
2024
2025
Increase/Decrease
SDCs
2025 Proposed vs
Actual Actual Actual
Budget
Proposed
2024 Budget
Beginning Fund Balance
1,463,326 2,156,674
2,465,341
2,465,341
2,467,917
Revenues
Taxes
Licenses & Permits
Intergovernmental Services
Charges for Goods & Services
781,031 739,315
309,222
745,000
300,000
-3,0%
Fines & Penalties
Miscellaneous Revenue
12,317 53,022
92,951
40,000
85,000
-8.6%
Other Increases
Other Financing Sources (inc. Transfers In)
Total Revenue
793,348 792,337
402,173
785,000
385.000
-4.3%
Expenditures
Salaries & Wages & Benefits
Supplies
Services
Capital Outlays
Debt Service - Principal
Debt Service - Interest
Other Financing Uses (inc., Transfers Out)
100,000 483,669
399,598
705,906
1,645,950
311,9%u
Total Expenditure
100,000 483,669
399,598
705,906
1,645,950
311.9%
Net Change in Fund Balance
693,348 308,667
2,576
79,094
(1,260.950)
-49055.8 %
Ending Fund Balance
2,156,674 2,465,341
2,467,917
2,544,435
1,206,967
Sufficient to Meet Obligations
_
_��„FA,�(F,
City of Port Townsend
UNEMPLOYMENT RESERVE FUND
BUDGET SUMMARY
Unemployment Internal
2022 2023 2024
2024
2025
Increase/Decrease
Service Fund
Actual Actual Actual
Budget
Proposed
2025 Proposed vs
2024 Budget
Beginning Fund Balance
22,232 22„346 22,339
22„339
167342
Revenues
"Taxes
Licenses & Permits
Intergovernmental Services
Charges for Goods & Services
Fines & Penalties
Miscellaneous Revenue
116 76 61
-100,0%
Other Increases
Other Financing Sources (inc. Transfers In)
4,389 -
25,000
10,000
Total Revenue
4,505 76 61
25,000
10,000
16207.9%
Expenditures
SMarles & Wages & Benefits
4,391 83 7,058
25,000
10,000
41.7%
Supplies
;Stta'vdces
_ .
CapiW Outlays
Debt Service - Principal
Debt Service - Interest
OmOrFinancing Uses (inc. Transfers Out)
Total Expenditure
4,391 83 7,058
25,000
10,000
41.7%
Net Change in Fund Balance
114 (7) (6,997)
-100.0%
Ending Fund Balance
22,346 22,339 15,342
22,339
15,342
Sufficient to Meet Obligations
City of Port Townsend
FIREMEN'S PENSION FUND
BUDGET SUMMARY
LECIFF 1 2022 2023 2024 2024 2025 lner:ase/Decrease
202 Proposed vs Ifl
Fiduciary Fund Actual Actual Actual Budget Proposed 2024 Budget I
Revenues
Taxes
Licenses & Permits
Intergovernmental Services
Charges for Goods & Services
Fwws & Penalties
Mir cc4lanaous Revenue
0m,w Increases
Other Financing Sources (Inc. Transfers In)
Total Revenue
& Wages & Benefits
Capiml Outlays
Debt Service - Principal
Debt Service - Interest
Other Financing Uses (inc, Transfers Out)
Total Expenditure
Net Change in Fund Balance
Ending Fund Balance
7,724
15,321
8,500
•100.0%
34,235
34,235
22,917
27,500
27,500
200%
34,235
41,959
38,238
36,000
27,500
-28.1%
13,936
12,551
6,556
25,000
-100,0%
1,360
1,346
1,133
1,360
1,374
21.3%
15,296
----------
13,897
7,690
26,360
1,374
-82.1%
18,939
28,063
30,548
9,640
26,126
-14.5%
313,510
341,573
372,121
351,213
398,247
CITY OF PORT TOWNSEND, WASHINGTON
STAFFING AND COMPENSATION SUMMARY
The City of Port Townsend employs approximately 114 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, 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 contract was ratified December 31, 2023, and will
expire December 31, 2026. 15.0 full-time officers and 1 provisional officer were included
in the budget. Recruitment for the police department has been effective, the department
anticipates full staffing in 2025. Retaining officers will continue to be a priority for Port
Townsend.
2025 wage rates for police are contracted to increase 3%. Due to current labor market
conditions and higher than normal inflationary times, salary increases for staff continue
to be above average. All known increases are included in the budget estimates for 2025.
The General Government Collective Bargaining Unit agreement expires December 31,
2024. Negotiations are currently underway. A budget supplement will be submitted for
Council approval in 2025 when negotiations have been completed.
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
2024-5 are as follows:
• Effective January 1, 2025 — the Mayor's monthly salary will be $1,075
• Effective January 1, 2025 — each Council member's monthly salary will be $725
Council salaries will increase in 2026. In 2028 a subsequent Salary Commission
consideration is statutorily required. The binding decision can be challenged by
referendum within 30 days. The process is defined in Port Townsend Municipal Code
2.90 Salary Commission.
City Council members are eligible to enroll in health benefits as part of the elected position
group. Coverage is dependent on group participation, with minimum requirements for the
group plan.
The 2025 budget reflects a total of 113.6 full-time equivalents (FTEs) excluding Council
members and seasonal staff. The FTE count reflects an increase of 4 positions
compared to the 2024 budgeted positions. The Community Services Director will replace
the Library Director in the 2025 budget.
Additions include:
• Community Services Director
• Arts & Culture Coordinator
• Water Maintenance Worker
• Streets Operator I
• Parks Maintenance Worker
Despite these additions, 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 is a key focus area of the report delivered by the Financial
Sustainability Task Force.
Details on the assumptions used in preparation of the 2025 salary and benefit budget,
including details regarding the proposed staff reductions, are provided below.
The General Government Agreement covers Public Works, Planning and Community
Development, Finance, Police Administration, and some library employees. The General
Government Collective Bargaining Unit contract expires December 31, 2024.
Negotiations are in progress for a new contract. The General Government Agreement
with the Teamsters defines the pay scales, seniority rates and annual inflationary
adjustments to salaries for this group of employees. 2025 budget assumptions do not
include a COLA increase; any wage rate increases will be determined when a new
agreement is ratified, and the costs will be brought back to Council in a 2025 budget
supplemental.
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 2025.
2025 Bud et Assumptions for Police A reement
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 contract expires December 31, 2026. The current
contract was ratified on December 31, 2023.
2025 budget assumptions include a contracted hourly rate increase of 3%. 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 2025.
The non -represented employee group is made up of management and professional level
staff, non -union 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 the performance and availability of budget dollars. Full-time employees
receive a full benefit package through AWC 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 7.3% 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 2025. There are no increases forecasted for vision benefit rates.
Due to the increasingly competitive recruitment and retention environment of the past few
years, a comprehensive review of both represented and non -represented was completed
in 2023. Based on the results of the market study, a new grade -based system has been
put in place for non -represented employees. In addition, the compensation policy has
been updated and incorporated into the City's personnel policies. The represented
positions included in the salary were reviewed in 2024.
The 2025 budget does not include a cost of living wage adjustment for non -represented
employees, this will be brought back to council as a supplemental after the General
Government Agreement has been ratified.
Minimum Wage - For 2025, the minimum wage will increase $0.38 or 2.35% to $16.66
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.
Recruitina Staff. Succession Plannina and Best Practices
The City continues to strive to foster a healthy organization through investing in leadership
development and training and adopting and implementing best employment practices.
In 2022, 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 Generalist, a part-time Human Resource Assistant as well as support
from the Payroll Administrator. The Director will continue to 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 2025 budget adds resources for
staff training and education.
A total of 113.6 positions are included in the budget for 2025, not including Council
members, seasonal workers, volunteer hours or accrued leave payouts. Seasonal
workers consist of 2.0 FTEs or 4 short-term employees to assist with Streets and Parks
operations. 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
Previous years totals are reflective of the council adopted budget for each year, numbers
may change after adoption due to mid -year Council authorized positions but are included
for rough comparison.
CITY OF PORT TOWNSEND -AUTHORIZED POSITIONS ......_..__
Department/Division
2021
2022
2023
2024
2025
2025
Increase
General Government
Cit Mana er _
1.0
1.0
1.0
1.0
..........._ _ 1.0
.........._
0.00
Cit Attorne
2.0
2.0
2.0
2.0..._....__
2.0
0.00
Communications & Marketin,
1.0
1.0
1.0
0.00
Plannin & CommunitDevelo�ment
_
8.0
8.5
9.5
10.0
11.0
0.00
Finance, UB, PRR
9.0
9.0
9.0
9.8
11.0
0.00
Police Admin & 40 aerations
18.6
20.1
22.1
22.3
20.0
0.00
Ci Clerk/Human Resources
3.6
4.0
5.0
4.8
3.5
0.00
Street
1.7
1.7
1.7
1.9
2.7
�1.00
ERR - Fleet & IT
3.0
3.0
3.
4.0
4.01
0.00
Total General Government
46.91
49.3
54.3
56.8
56.2
1.00
�Communitv Services
Comm Svcs Administration
0.0
0.0
0.0
0.0
0.7
0.67
Arts & Culture
0.0-0.0-0.0-0.0-1.0-1.00
Facilities
_w.__...... ..i -......_.. .",eats ...
3.5
3.5
3.5
5.5
4.9
0.00
Parks Maintenance &Recreation
3.5
_-�
4.2
_w2
4.2
..
4.5
_ w
5.5
__...._w
1.00
Pool
4.0
0.0
0.0
0.0
0.0
0.00
Library
8.9
8.9
8.9
8.9
8.0
-0.67
Total Communi Services
19.9
16.6
16.6
18.9
20.0
2.00
Public Works &
Utilities excl UB
Public Works Administration
2.5
2.5
2.5
3.5
2.5
0.0
PublicWorks E� ineerir.µ.
M. _..
5.9
M ww6.5
......ww... 6.5
w 6.5
WWµ 8.5
0.0
Utillities.
_
.
Water Distribution ��µITIT�w�
5.0'
... 5.0
5.0
5.0
7.8
1.0
Water tuali & Resource
4.0
4.0
4.0
4.0
... 3.5
__.__.._....ww 0.0
Wastewater Collection
2.2
2.2
2.2
2.6
3.4�
0.0
Wastewater Treatment
w
....w_ 3.5
_.. 3.5
3.5
5.0
4.4
0.0
Biosolids
2.5
....
2.5
_www
2.5
_... _..._w
3.0
_..........4
3.0
....._w
0.0
Stormwater
3.11
3.11
3.1
3.8
4.3
0.0
Total Public Works & Utilities
28.7
29.3
29.3
33.4
37.31
1.00
TOTAL CITY FTES
95.51
95.2
100.2
109.1
113.E
4.00
Percentage Change
4.2%
Positions not currently counted as
FTES 2021 2022 2023 2024 2025
Ma 'or/Council 7.0 7.0 7.0 7.0 7.0
Total City FTES does not include leave payouts or seasonal positions
salaries within the number of FTES & within the budgeted salaries & benefits amounts.
CITY OF PORT TOWNSEND
NON -BARGAINING EMPLOYEE POSITION CLASSIFICATION
SALARY SCHEDULE
BUDGET 2025, Salay Schedule effective January 1, 2025
Elected Officials
Classification
Minimum
Maximum
Mayor
$
12,906
$
12,900
Councilmembers
$
8,700
$
8,700
Non Represented Employees
Range
Classification
Step 1
Step 9
600
City Manager
$
166,000
$
205,917
631
City Attorney
$
146,591
$
181,773
631
Chief of Police
$
146,591
$
181,773
630
Public Works Director
$
139,610
$
173,117
630
Finance and Technology Director
$
139,610
$
173,117
629
Planning & Community Development Director
$
132,962
$
164,873
628
Community Services Director
$
126,631
$
157,022
628
Deputy Police Chief
$
126,631
$
157,022
628
Deputy Public Works Director/City Engineer
$
126,631
$
157,022
627
Deputy Public Works Director/Engineering Svcs Mgr
$
120,601
$
149,545
627
Director of People & Performance
$
120,601
$
149,545
627
City Engineer
$
120,601
$
149,545
626
Assistant City Engineer
$
114,858
$
142,424
625
Prosecuting Atty/Asst City Attorney
$
109,388
$
135,642
625
Human Resources Manager
$
109,388
$
135,642
625
Communications & Marketing Director
$
109,388
$
135,642
624
Planning Manager
$
104,179
$
129,182
624
Civil Engineer III
$
104,179
$
129,182
624
Public Works Operations Manager- Streets
$
104,179
$
129,182
624
PW Ops Manager- Water
$
104,179
$
129,182
624
PW Ops Manager - WWTP
$
104,179
$
129,182
623
Library Director
$
99,218
$
123,031
623
Finance Manager
$
99,218
$
123,031
623
Building Official
$
99,218
$
123,031
623
Project Manager III
$
99,218
$
123,031
622
Parks & Facilities Manager
$
94,494
$
117,172
622
Communications & Marketing Manager
$
94,494
$
117,172
622
Civil Engineer II
$
94,494
$
117,172
622
Accounting Manager
$
94,494
$
117,172
622
City Clerk
$
94,494
$
117,172
621
Project Manager II
$
89,994
$
111,593
620
Library Manager- Public & Tec Svs
$
85,709
$
106,279
620
Library Manager - Youth Services
$
85,709
$
106,279
620
Senior Planner
$
85,709
$
106,279
620
Civil Engineer I
$
851709
$
106,279
620
Finance & Budget Analyst
$
85,709
$
106,279
620
Long Range Planner (Limited Term)
$
85,709
$
106,279
619
Project Manager 1
$
81,627
$
101,218
618
ICivil Engineer EIT
$
77,740
$
96,398
617
Public Records Officer
$
74,038
$
91,808
617
Human Resources Specialist or Generalist
$
74,038
$
91,808
617
Executive Assistant to City Manager
$
74,038
$
91,808
616
Pa roll and Benefits Administrator
$
70,513
$
87,436
616
616
>eput City Clerk
Legal Assistant
$
$
70,513
70,513
$
$
87,436
87,436
616
Legal Assistant/Deputy Clerk
$
70,513
$
87,436
615
Executive Assistant to Chief of Police
$
67,155
$
83,272
612
Housing Grants Coordinator
$
58,011
$
71,934
610
Hoyr'
Navigator (''Limited Term)
Part-Time Positions
$
52,618
$
65,246
612
12
Human Resources Assistant
Associate Librarian Teamster
$
$
58,011
27.89
$
$
71,934
34.58
10
Library Associate
$
25.30
$
31.37
5
5
3
1
Library Assistant Teamster
librarx Assistant Substitute
Literary Courier
Library Page
$
$
$
$
19.82
19.82
17.98
16.31
$
$
$
24.58
22.29
20.22
Reserve and Seasonal Positions
** Seasonals not included in Total FTE count
rSeasonal Workers
$
16.31
$
20.22
Non-i4e resented EmPlo ee
CITY OF PORT TOWNSEND
UNCLASSIFIED EMPLOYEE POSITION CLASSIFICATION SALARY SCHEDULE
BUDGET 2025, Sale Schedule effective January 1, 2025
Non -Represented Classification Minimum Maximum
Union/Represented Classification
Minimum
Maximum
Total Unclassified EmPloyees
CITY OF PORT TOWNSEND
UNION/REPRESENTED EMPLOYEE POSITION CLASSIFICATION SALARY SCHEDULE
BUDGET 2025, Salary Schedule effective Janua 1, 2025
Union/Represented, Employees
Grade
Classification
Minimum/hr
Maximum/hr **
31
29.5
IT Network Administrator
Accountant
$
$
45.43
39.17
$
$
51.56
44.45
29.3
Associate Planner
$
37.80
$
45.73
29.3
29
GIS III
Crew Chief
$
$
37.80
37. 88
$
$
45.73
42.12
25
25
GIS Coordinator
IT Technician
$
$
36.40
36.40 1
$
$
41.38
41.38
23
Buildin Inspector
$
35.54
$
40.37
23
23
Code Compliance Officer
Public Works Inspector
$
$
35.54 '1111$
35.54
$
40.37
40.37
23
23
Crew Chief Apprentice
GIS Analyst II
$
$
35.54
35.54
$
$
40.37
40.37
21
21
Maintenance WoI Lead
rker II
Fleet Technician III ('Lead)
$
$
34.49
34.49
$
$
39.18
39.18
21
Wastewater Treatment/Compost Operator III (Lead)
$
34.49
$
39.18
21
Electrician
$
34.49
$
39.18
21
Arts & Culture Coordinator
$
34.49
$
39.18
19
Police Records Lead
$
34.49
$
39.18
19
Assistant Planner
$
33.93
$
38.53
19
Finance Specialist
$
33.93
$
38.53
19
Land Use Specialist
$
33.93
$
38.53
19
Project Accounting Specialist
$
33.93
$
38.53
19
Purchasing/Contracts Specialist
$
33.93
$
38.53
17
Mechanic
$
32.94
$
37.42
15
Maintenance Worker II
$
32.21
$
36.44
15
Fleet Technician II
$
32.21
$
36.44
15
Wastewater Treatment/Compost Operator II
$
32.21
$
36.44
13
Finance Tech III
$
29. 44
$
32.97
13
Police Clerk
$
29.04
$
32.97
13
Public Works/En ineerin Support Specialist III
$
29.04
$
32.97
13
Permit Technician III
$
29.04
$
32.97
11
Parks, Rec & Comm Services Admin Support Spec
$
26.97
$
30.53
111,1111, 11
Public Experience Liaison
$
26.97
$
30.53
11
Utility Billing / Collection Specialist
$
26.97
$
30.53
11
Permit T11 echnician II
$
26.97
$
30.53
11
GIS 1
$
26.97
$
30.53
9
Community Services Officer
$
26.48
$
30.28
9
Finance Tech II
$
26.48
$
30.28
9
Maintenance Worker I
$
26.48
$
30.28
9
Fleet Technician 1
$
26.48
$
30.28
9
Wastewater Treatment/Compost Operator 1
$
26.48
$
30.28
9
Permit Technician I _
$
26.48
$
30.28
9
Public Works/Engineering Support Specialist II
$
26.48
$
30.28
7
Maintenance Worker Apprentice
$
25.61
$
29.09
7
Fleet Technician Apprentice
$
25.61
$
29.09
7
Wastewater Treatment/Compost Operator Apprentice
$
25. 11
$
29.09
7
IGIS Apprentice
$
25.61
$
29.09
Administrative Assistant
$
25.61
$
29.09
Facilities Custodian
$
25.61
$
29.09
E77
Public Works Administrative Assistant
$
25.61
$
29.09
Police Officer
$
37.79
$
43.37
Sergeant
$
48.58
$
53.14
c►tal Union ftepresente IEm- ployees
'* max pay does not include longevity or other premiums as may be applicable
TOTAL CITY POSITIONS (Excluding Elected Officials, Seasona/s & Reserve Officers)
Debteeit_.... _..ww�
Based on Prior Year Assessed Value
Amount at End of Year
Prior Year Assessed Property Value
General Oblication Debt Capicity ( up to 7.5% )
General Purpose Debt Limit ( 2.5% )
NonVoted Debt Limit 1.5% (councilmanic)
Voted Debt Limit 1.0%
Debt Limit 2.5%
Utility Purpose Debt Limit ( 2.5% )
2021 2022 2023 2024 2025
Actuals Actuals Actuals Actual Budget
2,011,668,000
30,175,020
20,116,680
50,291,700
Voted Debt Limit 2.5% 50,291,700
�oiar
Open Space, Park & Capital Facilities Debt Limit ( 2.5°% )
'rVaed Debt Limit 2.5% 50,291,700 55,375,275 66,427,950 70,157,625 74,758,482
Total General Obligation Debt Capacity _ 150,875,100�166,125,825 199,283,850 210,472,875 224,275,447
NonVoted General Obligation Debt Outstanding
2,215,011,000
2,657,118,000
2,806,305,000
2,990,339,293
per Jefferson County
Assessor
33,225,165
39,856,770
42,094,575
44,855,089
22,150,110
26,571,180
28,063,050
29,903,393
55,375,275
66,427,950
70,157,625
74,758,482
55,375,275
66,427,950
70,157,625
74,758,482
LTGO
2017A (2008 Refi) NonTaxable Bond
9,155,000
9,155,000
9,155,000
9,155,000
9,155,000
LTGO
2017E (2008 Refi) Taxable Bond
1,060,000
1,060,000
1,060,000
LTGO
2020 (Refi 2010 LTGO)
3,868,350
3,658,350
3,053,000
2,747,200
2,440,000
LTGO
Refi 2012 (PORTOWGORE12)
1,660,000
1,135,000
585,000
LTGO
2018 Homeward Bound Debt Svc
808,104
781,,089
752,846_
692,621
NonVoted GO Debt Outstanding
16,551,454
15,789,419
14,605,846
_723,381
12,625,581
_
12,287,621
Voted General Obligation Debt Outstanding
LTGO Refi 2015 (PORTOWUTGO15)
2„640,000
2,440,000
2,235,000
2,025,000
1„805,0041
Voted GO Debt Outstanding
2,640,000
2,440,000
2,23,000
2,025,000
1,805,000
Total General Obligation Debt Outstanding
19,191,454
1iY29,419
16,840,846
14,650,581
14,092,621
NonVoted Debt Capacity
13,623,566
17,435,746
25,250,924
29,468,994
32,567,468
Voted Debt Capacity
120,700,080 _
132,900,660
159,427,080
168 378,300
179,420,358
Available GO Debt Capacity
134,323,646
150,336,406 M
184,678,004
197,847,294
211,987,826
�Ldt�r�: ..a.�,.:.1n01".�...�.�..�.�
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�,..�._..www._�..
GO Debt as % of Assessed Value
0.95%
0,82%
0,63%
0.52%
0.47%
Industry Standard not to exceed 4.5%
90,525,060
60,255,689
119,570,310
126,283,725
134,565,268
GO Debt per Capita
1,891
1,784
1,637
1,418
1,351
Population"
10,148
10,220
10,290
10,330
10,433
' Per WA S,ale 011
esl based upon 1°k pfautinnlme
Revenue Debt Outstanding (excluded from General Purpose Debt limits)
Amount Outstanding at End of Year
2021
2022
2023
2024
2025
Actuals
Actuals
Actuals
Actual
Budget
PWTF 2002: Morgan Hill Wtr System Impr.
133,404
66,702
dSRF 2002: DOE Wastewater Conveyance Sys,
PWTF 2012 City Lake Loan
196,950
148,811
99,947
50,347
578,947
526,316
473,684
421,053
368,421
DWSRF 2012: LT2 Water Treatment Facility
1,231,135
1,119,214
1,007,293
895,371
783,450
DWSRF2012„ LT2Water'TreMrnentFa City
2,472,911
2,318,354
2,163,797
2,009,240
1,854,683
P'WTF 2013: 5 MG Reservoir R%gacenrent
900,750
825,687
750,625
675,562
600,500
pwrF2011 L'T'21UVDIsinfelion
2,957,571
2,711,107
2,462,642
2,218,178
1,971,714
DWSRF 2015: Mandated Drink4ig Wator Treat
3,006,684
2,829,820
2,652,956
2,476,093
2,299,229
DWSRF201& 5MGResermorReplacement
3,765,189
3,543,707
3,322,225
3,100,744
2,879,262
CERD 201& Howard St Corridor Public Intraso
1,119,007
1,071,216
1,021,991
892,297
840,074
Rev Bodv,120X LT2 6 ffig Ouil
1,914,980
1,834,800
1,751,300
1,667,00_0
1,581,800
18,277,528
16,995,734
15,706,460WW
rtµm 14,405,885µMW
IT 13,179,133
Per amorlizaton Schedule Principal outstanding (cash basis: interest not recorded until due)
Debt Ca
250,000,000
200,000,000
150,000,000
100,000,000
50,000,000
2021
Actuals
General NonVoted
22,500,000
20,000,000
17,500,000
15,000,000
12,500,000
10,000,000
7,500,000
5,000.000
2,500,000
2021
ACTUALS
20,000,000
17,500,000
15,000,000
12,500,000
10,000,000
7,500,000
5,000,000
2,500,000
General Obligation Debt Capacity
Limited to 7.5% of Assessed Valuation
(Industry standard is 4.5% of Assessed Valuation)
2022 2023 2024 2025
Actuals Actuals Actual Budget
i :. I General Voted Utility Voted Other Voted ° NonVoied Debt
General Obligation Debt
2022
ACTUALS
o, LTGO 2020 (Refi 2010 LTGO)
ma LTGO 2017A (2008 Refi) NonTaxable Bond
LTGO Refi 2012 (PORTOWGORE12)
2023 2024
ACTUALS ACTUAL
LTGO 2018 Homeward Bound Debt Svc
ni LTGO 2017B (2008 Refi) Taxable Bond
IN LTGO Reti 2015 (PORTOWUTG015)
Enterprise Funds
Water & Sewer Revenue Debt
(No Debt Limitations)
2021 2022
ACTUALS ACTUALS
SRF 2002: DOE Wastewater Conveyance System Impr.
Rev Bond 2020: LT2 & Big Quil
DWSRF 2015: Mandated Drinking Water Treatment Facility
PWTF 2013: 5 MG Reservoir Replacement
DWSRF 2012: LT2 Water Treatment Facility
2025
BUDGET
2023 2024 2025
ACTUALS ACTUAL BUDGET
�o PWTF 2013: LT2 UV Disinfection
CERB 2015: Howard St Corridor Public Infrastructure
DWSRF 2015: 5MG Reservior Replacement
DWSRF 2012: LT2 Water Treatment Facility
n PWTF 2002: Morgan Hill Wtr System Impr.
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Comprehensive Financial Management Policy Guidelines
Adopted December VI 202,N
Page I of22
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Policy Guidelines
Adopted December , 202,
Comprehensive Financial Management Policy Guidelines
Adopted December 4 , 20234
Page 2 of 22
Comprehensive Financial Management Policies Index
I. FINANCIAL POLICY GUIDELINES ...... .»..... ........................—......»».........„»......,,,,,,.3
11. ORGANIZATION ............ .»...........................
».,,..,,.».,„..,.,,.....,...,. »..,...,».»»,.,,..».,,.,...3
III. ACCOUNTING, AUDITING AND FINANCIAL REPORTING
IV. FUND STRUCUTURE & FUND RESERVE GUIDELINES..................................6
V. REVENUE POLICIES........................................................................................... <l
VI. OVERHEAD COST RECOVERY (COST ALLOCATION) .... ................... ........ »,, 11
VII. GENERAL BUDGET POLICIES ...................................... „........... ,........ --........ 1
VIII. FINANCIAL PLANNING POLICIES ................................... .... -- ...... .,.,»,„,,,,.141� I
IX. ENTERPRISE FUNDS ....... »........... --- ............... ,................... ....................... 14
q X. CAPITAL INVESTMENT PROGRAM PLAN POLICIES .................................. i 1!5
XI. DEBT MANAGEMENT POLICY »..» ....................... ......... ........... .. .................. »,,.. 15
XII. PURCHASING POLICY ........... ........»,,,.»,...... ,........ .,.,,...... .,....,....,,......... ..,»,.,.,. 17
XIII. ELECTRONIC FUNDS TRANSFER POLICY ........... .,,,„...,,.,..„„»,.,„„»,„.,»,...... — 17
XIV. GRANTS MANAGEMENT POLICY,,..».».,......»,.,.,,....».,,..».....................».,,.„...,„ 17
.m;... ... a,.., w. ,..__„ ,. a•„, ��w .,. m.. ;.;w , I�
Formatted Check spelling and grammar
Formatted: Normal
APPENDIX A: NVESTMENT POLICY.......................................................19
APPENDIX B: CITY OF PORT TOWNSEND FEDERAL AWARDS STANDARDS
& CODE OF CONDUCT.........................................................................20
Comprehensive Financial Management Policy Guidelines
Adopted December - :1, 202.34
Page 3 of 22
I. FINANCIAL POLICY GUIDELINES
The financial policies outlined in this document have been developed in
accordance with the Government Finance Officers Association's "Best Practices".
These policy guidelines are intended to aid the City Council and City management
in financial decision making. These policy guidelines also provide a means to test
short term financial and budget decisions to help ensure the City is able to meet
its immediate and long-term financial service objectives and obligations.
The City of Port Townsend is accountable to its citizens for the use of public funds.
Municipal resources must be wisely used to ensure adequate funding for services,
public facilities and infrastructure needed to meet the community's present and
future needs. These policies are designed to help safeguard the fiscal stability
required to achieve the City's goals and objectives.
The City's Comprehensive Financial Policies have the following objectives:
• To guide the City Council and management policy decisions that have
significant financial impact.
• To set forth operating principles which minimize the cost of government
and financial risk to the City.
• To employ balanced, consistent, and fair revenue policies that provide
adequate funding for desired programs.
• To promote sound financial management by providing accurate and timely
information on the City's financial condition.
• To protect the City's credit rating and provide for adequate resources to
meet the provision of the City's debt obligations for all municipal debt.
• To ensure the legal use of financial resources through an effective system
of internal controls.
II. ORGANIZATION
The City provides municipal services for its citizens, including protection of life
and property, public health and welfare, and improved quality of life. The City
Council deems it a high priority to deliver municipal services in the manner
consistent for all citizens, and with maximum efficiency and financial prudence.
The Council, as the legislative and governing body, sets the City's Financial and
Budget Policy Guidelines, and through its Finance and Budget Committee,
monitors and reviews the City's overall financial performance.
The City Manager, as the City's Chief Executive Officer and Chief Budget Officer,
is responsible to the Council for managing City operations and program services,
and preparation of the City's Annual Budget consistent with established Financial
and Budget Policy Guidelines.
Comprehensive Financial Management Policy Guidelines
Adopted December �, , 2023�
Page 4 of 22
The Director of Finance & Technology Services, as the City"s Chief Financial
Officer and Chief Auditing Officer„ is responsible to the City Manager for the
preparation of accurate and timely financial and budget reporting. Additional
responsibilities include information technology administration„ general
accounting„ business licensettax administration and utility billing operations,
grant, federal & state funding compliance, purchasing administration, as well as
policy advice to the City Manager and Council,
The Department Heads are responsible to the City Manager for department
operation budget observance„ capital project management,, and grants
administration. Department Heads monitor related revenue performance and
expenditure control with the assistance of the Finance Department,
The City must prioritize its services and, should revenues become constrained,
the following services are considered priorities in the following general order:
1. Public Life, Health, and Safety: Police, ; building inspections; and traffic
control; water, sewer, and storm drainage service and streets infrastructure
maintenance.
. Legal Mandates: Accounting/auditing/financial reporting; land -use
planning„ required staff certifications and training.
, City Facilities and Property: maintenance of parks, buildings, public rights
of way, and City equipment (including information technology equipment)�
4. Council and community goals, both annual and long-range, including
strategic plan goals.
III. ACCOUNTING, AUDITING AND FINANCIAL REPORTING
The City will maintain a system of financial monitoring, control and reporting for
all operations and funds to provide effective means of ensrriring that overall City
goals and objectives are met,
Accounting aso a R rtl -- The City will maintain its accounting
records in accordance with state and federal regulations. Budgeting, accounting
and reporting activities will conform to the Budgeting, Accounting and Reporting
System (BARS) for Governments as prescribed by the Washington State Auditor,
The City maintains its accounting and budgeting records on a cash basis and
adheres, to the cash basis BARS manual.
aRitalll assets -- s a cash basis entity, the City records and reports only inflows
and outflows of cash. When a capital asset is purchased„ the entire expenditure
is recorded when the cash is expended and depreciation is not recorded. "The City
considers capital assets to be real and intangible assets above $7,500 in value
that have ail anticipated life of one year or more, Capital assets are tracked by
Comprehensive Financial Management Policy Guidelines
Adopted December 4e , 202.E J
Page 5 of 22
the Finance Department as a fixed asset inventory. Items that are no longer
needed or no longer functional will be disposed according to the City surplus
policy and state law.
Capital assets that are purchased with grant funds may be subject to additional
compliance requirements. The department obtaining the grant is responsible for
understanding any compliance requirements related to acquiring, inventorying,
tracking and disposing of assets obtained through these types of funds.
Small and Attractive Assets - The City identifies small and attractive assets as
items with a cost greater than $500 but less than $7,500. These items have a life
expectancy of more than one year AND are not likely to be immediately missed
upon disappearance. These items are generally mobile in nature and may be
easily transported from the workplace. Some exceptions to the $500 minimum
include tablets, phones, personal computers, and other lower cost items that have
ongoing maintenance or service costs associated with them. Department Heads
are accountable for the security of these items and are responsible for following
the Small and Attractive Assets Policy and Procedures that have been adopted
by Council. The Director of Finance and Technology Services (Finance Director)
has oversight responsibility for this policy and the associated inventory of these
items.
Auditing — The State Auditor will perform the City's financial, federal single audit
and accountability/compliance audits in accordance with state and federal laws.
Results of the audit will be provided to the Council in a timely manner.
Cash Management — The Director of Finance & Technology Services will ensure
that cash management systems are developed to ensure accurate and timely
accounting for all cash and security of all cash assets.
Careful financial control of the City's daily operations is an important part of the
City's overall fiscal management practices. Achieving adequate cash
management and investment control requires sound financial planning to ensure
that sufficient revenues are available to meet the current expenditures of any
operating period.
The City's cash management and investment guidelines are as follows:
• The City will maintain a cash management program, which includes
internal control practices for collection of accounts receivable,
disbursement of funds, and prudent investment of its available cash.
• The Director of Finance and Technology Services (Finance Director)
serves as the investment officer of the City of Port Townsend. The
Finance Director is authorized to oversee the investment program and to
develop operating procedures to administer the program. The Finance
Comprehensive Financial Management Policy Guidelines
Adopted December �m23W
Director may delegate the authority to conduct investment transactions and
manage the operation of the investment portfolio to one or more
subordinates aooutlined inthe investment program operating procedures.
All participants inthe City'n investment process shall act responsibly os
custodians ofthe public trust.
° As permitted bylaw and City ordinances and to maximize the effective
investment of assets, all funds needed for general obligations may be
pooled into one account for investment purposes. The �ncome derived from
this account will be distributed to the various funds based on their average
fund balances on a pehodic basis.
See Appendix Afor Full Investment Pdioy.
IV. FUND STRUCUTURE&FUND RESERVE GUIDELINES
The City'oaccounting and budgeting systems are organized and operated on a
fund basis. Funds are accounting onddox used to record revenues and
expenditures, total�|
expenditures, The budgeted fwndsa^egroupedintomategnhoo:Genemal, Special
mewsnuo' Debt Service, Capital Projects, Enterprise, and Internal Service.
The following provides ubrief description of the fund types and reserve guidelines
for each humd. The numbers in parentheses represent the BARS manual fund
series numbering scheme.
GENERALfUND (010 This is the primary operating fund or current expense
fund of the City, To maintain the City's credit rating and meet seasonal casli flow,
the budget shall provide for an anticipated undesignated furid balance between
8% and 15% of estimated annual revenues for general government fund types,
The fund balance shall be exclusive of all reserves riot anticipated to be readily
available for use in emergencies and con tinge ricies. Should the fund balance fall
below 8% of revenues, a plan for expenditure reductions and/or revenue
increases shall be Submitted by the City Manager to the Council, If, at the end of
a fiscal year, the fund balance faft below 8%, then the City shall rebuild the
balance within a period not to exceed three fiscal years,
GENERA F ND UN RE ER E dod he Gene n
provide for non -recurring COMMUntly request,% or unanticipated needs deemed
necessary by Council. The Council Reserve shall be suspended during times of
significant economic downturn, especially during years when the General Fund
Comprehensive Financial Management Policy Guidelines
Adopted December I ), 202 3 t
Page 7 oj'22
ending fund balance falls below 5%. The Council Reserve is a budgeted
appropriation expected to be specifically allocated at the Council's discretion.
SPECIAL REVENUE FUNDS 101-199 -- These funds account for revenues
derived from special taxes, grants or other restricted sources designed to finance
particular activities. Apart from any unrestricted General Fund contributions to a
Special Revenue Fund, the unexpended ending fund balances carry over year to
year and should retain enough revenue to cover operating cash flow and
anticipated major project or program obligations of the fund.
Of these funds, the Street, Library, and Community Services funds are of an
operations nature. The Street and Community Services Funds reserve balance
will be equivalent to 2-3% of fund expenditures. The Library Fund reserve is set
at 5-8% of Library property tax revenue.
Other Special Revenue Funds are more cyclical, or project related and only need
retained ending fund balances or transfers in to cover anticipated obligations:
Drug Enforcement, Lodging Tax, Fire/EMS, Affordable Housing, and CDBG
Grants.
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Comprehensive Financial Management Policy Guidelines
Adopted December 4 7, 20234
Page 8 of22
f;0W41 �twfiiate a
DEBT SERVICES FUND 26t! - These funds are used to pay general
government debt. The City shall retain or transfer in funds sufficient to cover the
annual debt service obligations and retain such "coverage" amounts to comply
with bond covenants or other loan restrictions.
CAPITAL PROJECTS FUNDS 300- These funds are established for the
acquisition or construction of general government (non -utility) Capital
improvements, Ending Fund Balance Reserves should be maintained at levels
sufficient to cover anticipated annual expenditures with transfers in from
supporting funds (General, REET, etc.) to cover project needs.
ENTERPRISE F NDS 4gCI - Thee funds are the proprietary or "business -like"
funds tor operations providing services to the general public supported primarily
through user's fees (Water„ Sewer, Stormwater, and Utility Revenue Bond), The
Ending Faired Balances of these funds should be equal to or greater than 60 days
of operating expenditures and any additional amounts needed to build towards
future project cash or debt payment needs, To the extent that the reserved Fund
Baiance and operating cash flow are riot adequate to fund needed utility systern
improvements, addifional rate increases or surcharges may be adopted by
Council. Included in the Enterprise funds are Debt Service Reserve Funds, Utility
Capital Project Funds and System Development Fund,
Revenue bonds may be issued by the Enterprise Funds. Investors may require
additional lending requirements or covenants. The ending fund balance of the
Enterprise Funds should include a reserve to rover any additional covenant
requirements,
INTERNAL SERVICE FUNDS 60t1 - These funds are also internal "business-
like" funds for operations providing services to other City departments (funds) on
a direct cost -reimbursement basis (e.g. Equipment Rental including Information
Technology services and equipment and Facilities„ Public Works Administration
and internal Engineering Services). Fund balances should break even, after set
aside of funds for future capital equipment replacements.
FIDUCIARY FUNDS 600 -.• 'f here funds account for assets held by the City as
a trustee or as an agent on behalf of others. Ending Fund Balances and any
transfers in should be maintained consistent with fund restrictions.
ENDING FUND BALANCE, RESERVES, CONTINGENCY SUMMARY
Comprehensive Financial Management Policy Guidelines
Adopted December 4', 202 ,4
Page 9 of 22
The following is a summary of the reserves guidelines. Guidelines will be reviewed
annually as a part of the Budget process:
General Fund ...................................
8-15% of operating revenue
Library ..........................................a.
5-8% of property tax
Street .............................................
2-3% of expenditures
Community Services .........................
2-3% of expenditures
Other Special Revenue Funds „.......,...
Sufficient to meet obligations
Contingency ....................................
No less than 2% of operating
revenue
Debt Service ...............
Sufficient to meet obligations
General Capital .............. ................
Sufficient to meet obligations
Enterprise Funds .............................
60 days of operating
expenditures
System Development Charges Fund
Sufficient to meet obligations
(Enterprise) ....................................
Internal Service ...............................
Sufficient to meet obligations
Fiduciary Funds ..............................
Sufficient to meet obligations
The undesignated General Fund Balance (the balance not tied to a known project)
will be maintained at a level that provides the City with sufficient working capital
and a comfortable margin of safety to address emergencies and unexpected
declines in revenue without borrowing. The City should not use the undesignated
General Fund Balance to finance recurring operating expenditures. Annual
General Fund revenues should be equal to or greater than annual regular
operating expenditures.
Reserves above the target can be used for new expenditures, with emphasis
placed on one-time uses that achieve future operating cost reductions.
General Fund revenues will be used for general government, street and
community service programs only. General Fund revenue for other purposes will
require approval by the City Council.
General Fund revenues will not be used to subsidize utility or enterprise
operations, which will be self-supporting through user rates.
V. REVENUE POLICIES
General Revenue Policies - The City will strive to maintain a diversified and
stable revenue system to shelter the government from short -run fluctuations in
any one revenue source and ensure its ability to provide ongoing service.
Comprehensive Financial Management Policy Guidelines
Adopted December •f2, 202,,'4
Page 10 of22
Restricted revenue shall only be used for purposes legally permissible and in a
fiscally responsible manner. Programs and services funded by restricted revenue
will be clearly designated as such.
One-time revenues shall support one-time expenditures.
County, state or federal funding will be used to finance only those capital
improvements that are consistent with the capital Improvement plan and local
government priorities, and whose operation and maintenance costs have been
included in operating budget forecasts.
Enter rise Fund ferrenue l'ollcles Enterprise funds will be operated in a
manner that maintains a minimum ending fund balance that is not less than 60
days of operating expenditures.
Utilities will be self-supporting through user rates and charges.
Utility user charges for each of the City utilities will be based on cost of service
(i.e., set to full support the total direct, indirect, and capital costs) and established
so that the operating revenues of each utility are at least equal to its operating
expenditures and annual debt service obligations. The user rates of a utility shall
be designated so that a portion covers replacement of the utility's facilities,
The Utility will conduct a study of its user rates no less than every 5 years to
ensure rates are adequate to fund operations and meet future needs.
Fund balances may be used to temporarily offset rate increases, after sufficient
funds have been accumulated for identified capital improvement needs or
alternative funding for projects has been secured.
Fees and. Chgrg2s (Non-L)tillty) All fees for licenses, permits, fines, and other
miscellaneous charges shall be set to recover the City's expense in providing the
attendant service. Average cost or actual cost methodology may be used. These
fees will be reviewed periodically and will be incorporated into the budget process
for possible action by Council.
Fees and charges for services will generally be set to recover the actual cost of
service delivery, Fees that are set lower than the cost -of -service delivery will be
reviewed at least every other year to determine if those fees are still appropriate
based on City finances and the community needs.
Where direct beneficiaries of a city program or services can be identified, fees will
be established to recover the costs of that program or service. Fees will also be
set in a manner that protects taxpayers from subsidizing special service users. A
fee shall be charged for any service that benefits limited interests within the
Comprehensive Financial Management Policy Guidelines
Adapted December i1, 202 � I
Page 11 oj'22
community, except for human needs type services to persons with limited ability
to pay.
Rental fees will be established to recover full cost of use of the property or facility.
Fees related to the rental of City properties may be waived only through approval
of the City Manager. The waiver of fees will only be provided if the purpose of
the rental or its associated event will benefit the community at large.
Some services provide greater benefit to the community. When a greater
community benefit is identified, the Council may choose to subsidize, either whole
or in part, such services.
Park Fees
Through a volunteer recruitment program, the Parks will seek to minimize the
subsidy required for partial and minimum fee support programs.
Solicitation of funds through donations, fund raising events, non-traditional
sources, and various other modes will be encouraged by the City through its park
user groups. Funds collected for any special purpose shall be earmarked for that
purpose.
VI. OVERHEAD COST RECOVERY (COST ALLOCATION)
As provided in the State Auditor's Office guidelines, "Cost allocation is a method
to determine and assign the cost of central services to the internal -government
users of those services. Cost allocation thereby enables local governments to
more accurately account for the complete cost of the services it provides to the
public —and to better assess the fees it should charge them." Included in cost
allocation are direct costs (not otherwise charged to budget units) and indirect
costs. Direct Costs are those costs that can be specifically identified with a
particular service or unit if not already charged directly (e.g. facilities, janitorial,
etc.) Indirect Costs are costs incurred for common or joint purposes, benefiting
more than one unit, not readily assignable to a specific unit (e.g., legal, human
resources, administration, clerk, etc.).
The term "allocation" implies that there is no overly precise method available for
direct charging a cost to a unit, so the City is using the most appropriate method
available for doing so. However, a cost allocation plan should be designed and
used to provide a reasonable, consistent and equitable means to allocate costs.
Inequitable charges result in questionable charges to grant, utilities and restricted
funds. For grant purposes, costs that benefit the public at large cannot be included
and should follow the OMB A-87 and/or 2CFR Part 200 guidelines.
Comprehensive Financial Management Policy Guidelines
Adopted December -1 ', 202 i�i
Page 12 of 22
The Council adopted a Cost Allocation Plan in Resolution 14-035 on June 25,
2014. In addition to using the overhead cost recovery model to assess the
appropriate amount of overhead to utilize for establishing User fees, the model will
be used to apply charges to Departments/Funds, for City-wide overhead indirect
cost recovery, where allowed (Council, City Manager, City Clerk, City Attorney and
Finance),
The Council may authorize waiver of the overhead cost -recovery in all or part if
Council determines doing so will provide a general benefit to the citizens,
taxpayers, or utility rate payer. If a portion of the overhead cost -recovery is
waived, the General Fund must absorb these costs; waived costs may not be
absorbed by or reallocated to a Special Revenue or Enterprise Fund,
VII. GENERAL BUDGET POLICIES
Annual Bud set — -The City's annual budget will be developed in accordance with
the policies and priorities set forttl in the comprehensive plan, the City Council's
strategic plan, City Council goals and priorities, the needs of the community, and
federal and state laws.
In general, budgeted revenues must meet or exceed budgeted appropriations
each year. Current year operating expenses, maintenance costs and direct and
indirect costs of services provided will be covered by current year revenues. One-
time expenditures may be appropriated if one-time revenues or excess fund
balance (in excess of reserve requirements) are available.
The City budget appropriations are adopted at the fund level. Department heads
are responsible for preparing a budget that reflects realistic expense projections
and that adhere to guidelines within this policy document
EXpense AegropriationlPoligies— Operating expenditures will be proposed at
a level that will be supported by ongoing annual operating revenues.
Staffing BLjd9jL=_Salary and benefit costs are the City's most significant
operating expense, The City will strive to provide a total compensation package
that is comparable to other cities and similar type positions within the same labor
market or other cities of a similar size with comparable type and quality services
in order to recruit and retain high quality staff.
The City Manager's proposed budget will identify staffing levels and provide
justification for any increases or decreases in overall City staffing.
Union Contract negotiations may impact budget expenditures annually. However,
if a collective bargaining agreement is, or will be, under negotiation, a specific
Comprehensive Financial Management Policy Guidelines
Adapted December aa, 202-3
Page 13 of 22
amount will not be included in the budget from potential wage adjustments
resulting from the negotiation, other than a base COLA adjustment. This is to
protect the City from any claims of not "bargaining in good faith". Funding for
unknown contract terms must be considered in balancing ongoing revenues with
ongoing expenses.
Equipment Replacement Maintenance - Equipment replacement and
maintenance projections will be updated each year. Replacement of items with a
cost of 7,500 or more will be reviewed to time such expenditures at stable intervals
to preserve cash flow, when possible. Deferment of regular repair and
maintenance will not be used to balance the budget.
Training avid Travel — City employees or others on official City business or
training may be required to travel outside the City to conduct their business or
training for the City. City employees and officials will be reimbursed for reasonable
and customary expenses incurred in the conduct of their business for the City,
including food, lodging and travel expenses while away, excluding any expenses
for personal entertainment or alcoholic beverages, as provided in the City's
Personnel Policies Manual for business or training travel. Such training or travel
shall be as provided either specifically or generally in the annual budget.
Training is an investment in maintaining the certifications and skills of the City's
employees. Allocating 1% of the department's budgeted salary expense is
recommended for certifications and skills training. The City will also include a
targeted amount of 1% of City-wide salaries for organizational development and
process improvement.
Investments that Forestall Addina Permanent Staff - Since personnel -related
expenditures represent the largest portion of the City's budget, funding of
technology or process improvements that increase efficiency and effectiveness of
the delivery of City services should receive priority funding.
Bydget lyt Lin
The Director of Finance and Technology Services will maintain a system for
monitoring the City's budget performance. This system will provide timely
information to Department Heads and the City Manager to ensure accuracy of
financial data and compliance with budget appropriations. The Council will receive
(at a minimum) quarterly reports regarding fund level revenues and expenditure
performance compared to budget.
Significant financial issues that need to be addressed between regular monitoring
reports will be provided to Council as warranted.
Comprehensive Financial Management Policy Guidelines
Adopted December ,Q 202',d
Page !4 of22
The Finance Director will monitor unanticipated needs or emergency expenditures
and prepare budget amendments or supplementals in compliance with State Law.
Vill. FINANCIAL PLANNING POLICIES
Financial Forecas — The City will develop a 5-year Financial Plan and Forecast
Model based on these financial policy guidelines and a best estimate of likely
revenues and expenditures, The model will be used to test the policies against
likely surrounding economic conditions. The model will be used for, long-range
financial planning and is not a replacement for budgeting„
The City"s financial planning will include the current year budget plus five
additional years of projected data. The City may elect to extend its planning
horizon further if conditions warrant.
The long-range financial plan operating revenues and expenses will include data
for the General Fund„ Contingency Fund„ Library Fund and Community Services
Fund. In addition to ongoing revenues and expenses, this forecast will utilize
assumptions that forecast general obligation debt and general fund contributions
to capital projects.
The long-range financial plan should present trends and projections in key
financial indicators, such as:
• Revenues and expenses per capita including nominal and inflation adjusted data.
• Staffing levels per 1,000 population: total and by major department.
• Projected annual growth rates of revenues and expenses including personnel
costs.
The long-range financial plan may include comparisons to other cities and
benchmarks, recognizing that the data for comparable cities may reflect
differences in service delivery„ financial structure and financial policies.
Comparative information may include:
• Comparative revenues and expenses by major type to include:
o Total revenues and expenses per capita.
o Taxes per capita by tax source.
IX. ENTERPRISE FUNDS
The Water, Sewer and Stormwater utilities will be managed as self-supporting
business enterprises. Each utility will be managed in a professional manner in
accordance with applicable laws and standards. The long-range financial plan
model for each utility will analyze rate revenues, rate structure, operating costs,
Comprehensive Financial Management Policy Guidelines
Adopted December �', 202 N
Page 15 oJ'22
replacement capital costs, debt service and other utility considerations (special
rate programs, paybacks, etc.). The City may utilize specialized rate consultants
to evaluate the rate and cost structure of the utilities.
X. CAPITAL INVESTMENT PROGRAM PLAN POLICIES
General Policy Considerations - The major resources for funding capital
improvement and capital maintenance programs are revenues, grants and debt.
Financing planned capital replacement costs are an ongoing challenge. Preparing
for the challenges of infrastructure replacement or enhancements demands a
long-term view of replacement needs. In order to plan for these needs the City will
develop a six -year Capital Improvement Plan (GIP) for adoption by Council as
required by the Washington's Growth Management Act. The CIP will be
consistent with the Capital Facilities Element of the City's Comprehensive Plan.
A capital project over $15,000 with a minimum of a five-year anticipated life will
be included in the CIP.
XI. DEBT MANAGEMENT POLICY
Lon Term Debt -- The City will manage its long-term debt in a manner designed
to utilize its credit to optimize City services while balancing overall debt levels and
annual debt service obligations. Long-term debt includes Bonds, Federal or State
loans (e.g. PWTF, FHA), or private placement financing. The City shall only use
long-term debt for capital projects that cannot be financed out of current revenues.
Annual debt payments should not exceed 15% of the total of annual General
Government operating revenues plus budgeted transfers from capital funding
sources. General Government Funds include the General Fund, Contingency
Fund and Special Revenue Funds.
Debt financing will generally be limited to one-time capital improvement projects
and only under the following circumstances:
• Debt payments shall not extend beyond the estimated useful life of the project
being financed. The City shall keep the average maturity of general obligations
bonds at or below 30 years, unless special circumstances arise warranting the
need to extend the debt schedule.
• When project revenue or specific resources as identified will be sufficient to
service the debt;
• When projects greater than $100,000 cannot be financed on a pay-as-you-go
basis from anticipated cash flows.
Debt financing will not be considered appropriate for:
• Current operating and maintenance expenses (except for issuing short-term
instruments such as revenue anticipation notes or tax anticipation notes); and any
recurring purpose (except as indicated above).
Comprehensive Financial Managernent Policy Guidelines
Adopted December,l ', 202 Ll
Page 16 of22
• Grant match less than $100,000 where funding is anticipated from on -going cash
flow or reserve balances.
• Projects less than $100,000 where funding is anticipated on a pay-as-you-go
basis from anticipated cash flows or reserve balances.
Tax anticipation debt will be retired annually, and bond anticipation notes MR be
retired within six months of the completion of the project. Short -tern) debt
outstanding at the end of the year will not exceed 5% of net operating revenue
(including tax anticipation notes but excluding bond anticipation notes.)
The City's Limited (non -voted) General Obligation (LTGO) Debt Capacity per
State Law is 1,6% of total assessed value, The City should seek to retain 5-10%
of its LTGO Debt Capacity for unforeseeable catastrophic emergencies.
Options for Interim or "Bridge" financing may include:
• Bond Anticipation Notes (BANS)
• Tax Anticipation Notes (TANS)
• Lines of Credit with major financial institutions
• Interfund Loans
$hort Term.,lDe!Lt — Transfers and Interfund Loapj,- General Fund transfers to
other funds are Intended as payments for the support of specific programs or
services, Amounts not needed to support such specific program or service
expenses will remain in the General Fund's fund balance. For example, the
General Fund may make transfers to the Debt Fund to fund annual debt service
payments or to the Community Services Fund to support parks or service
programs.
Interfund loans are temporary in nature. The requirements for interfund loans are
as follows:
• The Council must approve all Interfund loans by resolution. The resolution will
include a planned schedule of repayment of the loan principal as well as setting a
reasonable rate of interest to be paid to the lending fund,
• The borrowing fund must reasonably be able to anticipate sufficient revenue to
repay the principal and interest payments as required by the authorizing
resolution,
• The rate of interest should not be lower than the "opportunity cost" if the funds
were otherwise invested, such as the LGIP (Local Government Investment Pool)
rate or a bank CD rate for a similar term; not higher than the external rate available
to the municipality.
• Interest is not required in the following circumstances:
o If the borrowing fund has no independent source of revenue other than the
lending fund;
Comprehensive Financial Management Policy Guidelines
Adopted December I.r, 202� I
Page 17 of 22
o The lending fund is the General Fund, which, being unrestricted, can
provide interest free loans to other funds.
The term of the interfund loan will not exceed three years. Any interfund loans that
are not repaid within three years will be scrutinized for a "permanent diversion" of
moneys. (Note: These restrictions and limitations do not apply to those funds
which are legally permitted to support one another through appropriations,
transfers, advances, etc.)
For short-term cash deficits in non -General Fund operating funds during the
course of the year, City interfund loans are preferable to outside short-term or
private sector lines of credit.
XII. PURCHASING POLICY
Purchases of goods, services and capital items will be made consistent with the
annual budget appropriations, state and federal law, the City's Purchasing
Ordinance and the State Auditor's requirements. The City's Purchasing
Ordinance will outline the City Manager's spending and contracting authority. Any
purchases or contracts above those authority limits must be authorized in
advance by City Council (some exceptions for public emergencies will apply). The
City Manager may delegate spending authority (within his/her limits) to
Department Heads to facilitate operating efficiency.
The City Manager and Department Heads purchase goods and services at a
reasonable cost, using an open, fairly documented and competitive process
whenever reasonable and possible. The Director of Finance & Technology
Services (Finance Director) is charged with developing administrative/operating
procedures to implement sound purchasing policies. These procedures will be
based on guidelines provided in State Law and by the State Auditor's Office. All
purchases made by the City will ultimately be approved by the Council through
the voucher approval process.
XIII. ELECTRONIC FUNDS TRANSFER POLICY
Electronic payment methods are a safe and efficient method to process
disbursements and receive payments for City business. City policy is to establish
the best methods to process payments to employees and vendors. In addition,
City policy is to establish the best rnethods to receive payments from customers
and vendors. Electronic payment methods may include Electronic Funds Transfer
(EFTs), Automated Clearing House (ACH), Wire Transfers, credit card and debit
card.
The Director of Finance & Technology Services (Finance Director) will maintain
administrative/operating procedures to manage sound electronic fund transfer
policies and procedures.
Comprehensive Financial Management Policy Guidelines
Adapted December 4,', 202:N
Page 18 of 22
XIV. GRANTS MANAGEMENT POLICY
Leveraging City and community resource with external financial assistance can
enhance the quality and level of public services, facilities and infrastructure. City
Policy is to seek and accept grants and other financial assistance consistent with
the City's strategic plan.
External assistance also carries with it the goals and restrictions of the grantor.
Grant relationships are partnerships where the goals of both the City and grantor
must be in alignment. The benefits, costs and long-term implications of the
partnership must be considered prior to formal application. The City's Grants
Management Policy involves the following steps:
Search — City department staff and officials are encouraged to actively search out
and identify potential grants which may further the City's vision and goals, within
the City's financial limitations.
t re -AP of&cation — Department Directors and staff shall pursue grants within their
purchasing authority identified in City Purchasing Policies. The City Manager shall
be advised of all grant considerations over a $10,000 total.
F rmo I 6Qpjjgjtj2n — Formal applications directly by the City, or indirectly by
otheragencies involving the City, must fall within Departmental Purchasing levels.
All grants will seek reimbursement of direct cost departmental and City wide
indirect or administrative costs to the maximum extent allowable by the grantor.
Grants by other agencies involving the City or by the City involving other grantees
must have City Manager, or Council approval beyond the $60,000 Purchasing
levels.
Awgro iltid on r t — Upon formal Notice of Grant Award (NOiGA) or informal
notification„ a written contract must be approved prior to any City commitment„
formal or otherwise, All grant contracts must be within the City's Purchasing
levels. Any needed budget amendments for grant match not otherwise within
general bradget authority shall be adopted prior to formal grant acceptance and
contract signing.
Acilmuntiongpd Repolli — City departments shall coordinate with Finance to
assure that grants comply with Federal, State and local requirements for timely
reimbursements, monitoring of vendors and sub recipients, as well as City
Purchasing Policies. Any notification of audit of grant programs or funds should
Comprehensive Financial Management Policy Guidelines
Adopted December f1, 202 W
Page 19 qj"22
be sent to the Director of Finance & Technology Services even if the audit is
coordinated in another department.
Close Out — Multi -year grants shall have periodic accounting reviews not less
than at the close of each fiscal year. Upon conclusion of each grant, the
Department grant manager shall prepare a grant close-out report in coordination
with the City's Finance Department. A complete grants management file record
shall be maintained per City policy, either in the Department, Finance or Clerk's
Office.
The City Council Adopted Federal Awards Standards, Procurement Policy and
Code of Conduct Policy for all Federal Loans and Grants on July 10, 2017.
Standards for federal awards are detailed in Appendix B.
XVIII. VA(',ANCY IRA`] IE P01I ICY
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Comprehensive Financial Management Policy Guidelines
Adopted December 4., 202N
Page 20 of22
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To the extent possible, funds not needed for operations should be invested in
approved investment vehicles, investments shall be made with judgment and
care, under circumstances then prevailing, that persons of prudence, discretion,
and intelligence in the management of their own affairs, not for speculation, but
for Investment, considering the probable safety of their capital as well as the
probable income to be derived.
The standard of prudence to be used by investments officials shall be the prudent
person standard and shall be applied in the context of managing the overall
portfolio. Investment officers acting in accordance with written procedures and
the 4ivestments, policy and exercising due diligence shall be relieved of personal
responsibility for an individual's security's credit risk of market price changes,
provided deviations from expectations are reported in a timely fashion and
appropriate action is taken to control adverse developments,
The City will strive to maximize the return on its investments, with the primary
objective of preserving capital and prudent investment practices, including
diversification.
Investments will be made in accordance with the following objectives:
1) Legality: Funds of the City will be invested in accordance with the Revised Code
of Washington (RCW), the BARS manual, these policies and any applicable
administrative procedures.
2) Safety: Investments of the City will be undertaken in a manner that seeks to
ensure the preservation of capital in the overall portfolio. To attain this objective,
diversification is required in order that potential losses on individual securities do
no exceed the income generated by other investments.
3) Liquidity: 'rhe City's investments will remain sufficiently liquid to enable the city
to meet all operating requirements that might be reasonably anticipated,
4) Yield. The City's investments will be designed with the objective of attaining a
market rate of return throughout budgetary and economic cycles, taking into
8CCOUnt the City's investment risk constraints and cash flow characteristics.
The Director of Finance & Technology Services (Finance Director) will approve
financial institutions to be eligible to conduct investment business with the City, in
accordance with Washington State Law.
The Director of Finance & Technology Services (Finance Director) will periodically
furnish the City Manager and Council with a report that shall include the amount
of interest earned to date At least annually, a report summarizing investment
activity and rate of return will be provided,
Comprehensive Financial Management Policy Guidelines
Adapted December 4', 202.,N
Page 21 of 22
APPENDIX B- CITY OF PORT TOWNSE'ND FEDERAL -AWARDS
STANDARDS & CODE OF CONDUCT
CITY OF PORT TOWNSEND FEDERAL AWARD STANDARDS
PURPOSE
Establish and maintain internal controls that provide reasonable assurance that
Federal awards are being managed in compliance with all federal regulations and
with the terms and conditions of the award. The City of Port Townsend will follow
the Uniform Guidance, the Local Agency Guidelines (LAG) distributed by The
Washington State Department of Transportation (WSDOT), and the City of Port
Townsend's Comprehensive Financial Management Policy Guidelines.
INTERNAL CONTROLS
The City of Port Townsend will maintain effective internal control over the
Federal award providing reasonable assurance that the City of Port
Townsend is managing the Federal award in compliance with Federal
statutes, regulations, and the terms and conditions of the Federal award.
• Take prompt action when instances of noncompliance are identified
including noncompliance identified in audit findings.
• Take reasonable measures to safeguard protected personally identifiable
information and other information the Federal awarding agency or pass -
through entity designates as sensitive.
ADVANCE PAYMENTS AND REIMBURSEMENTS
Payment methods must minimize the time elapsing between the transfer of funds
from the United States Treasury or the pass -through entity and the disbursement
by the City of Port Townsend whether the payment is made by electronic funds
transfer, or issuance or redemption of checks, warrants, or payment by other
means.
• Advanced payments must be limited to the minimum amounts needed and
be timed to be in accordance with the actual, immediate cash requirements
of the City of Port Townsend to carry out the purpose of the approved
program or project. Any advanced payments must be consolidated to
cover anticipated cash needs.
• The City of Port Townsend shall minimize the time elapsed between receipt
of federal aid funds and subsequent payment of incurred costs.
ALLOWABLE COSTS
Federal awards will meet the following general criteria to be allowable except
where otherwise authorized by statute:
0 Be necessary and reasonable for the performance of the Federal award;
Comprehensive Financial Management Policy Guidelines
Adopted December I , 202 i=,
Page 22 of'22
• Conform to any limitations or exclusions set forth in these principles or in
the Federal award as to types or amount of cost items;
• Be consistent with policies and procedures that apply uniformly to both
Federally- financed and other activities of the City of Port Townsend;
• Be accorded consistent treatment;
• Not be included as cost or used to meet cost sharing or matching
requirements of any other Federally -financed program in either the current
or a prior period;
• Be adequately documented.
SINGLE AUDIT ACT
The City of Port Townsend, as a recipient of Federal funds, shall adhere to the
Federal regulations outlined in 2 CFR §200.501 as well as all applicable Federal
and State statutes and regulations.
CLOSURE
A project agreement end date will be established in accordance with 2 CFR
§200.309. Any costs incurred after the project agreement end date are not eligible
for Federal reimbursement.
Comprehensive Financial Management Policy Guidelines
Adopled December -1.', 202 � I
Page 23 of 22
CITY OF PORT TOWNSEND CODE OF CONDUCT
PURPOSE
The purpose of the Code of Conduct is to ensure the efficient, fair and
professional administration of federal grant funds in compliance with 2 CFR
§200.112, 2 CFR §200.318 and other applicable federal and state standards,
regulations, and laws.
APPLICATION
This Code of Conduct applies to all elected officials, employees or agents of the
City of Port Townsend engaged in the award or administration of contracts
supported by federal grant funds.
REQUIREMENTS
No elected official, employee or agent of the City of Port Townsend shall
participate in the selection, award or administration of a contract supported by
federal grant funds if a conflict of interest, real or apparent, would be involved.
Such a conflict would arise when any of the following has a financial or other
interest in the firm selected for award:
• The City employee, elected official, or agent; or
• Any member of their immediate family; or
• Their partner; or
• An organization which employs or is about to employ any of the above.
The City of Port Townsend's elected officials, employees or agents shall
neither solicit nor accept gratuities, favors, or anything of monetary value
from contractors, potential contractors or subcontractors.
REMEDIES
To the extent permitted by federal, state or local laws or regulations, violation of
these standards may cause penalties, sanctions or other disciplinary actions (up
to and including employment or contract termination) to be taken against the City
of Port Townsend's elected officials, employees or agents, or the contractors,
potential contractors, subcontractors or their agents. Any potential conflict of
interest will be disclosed in writing to the Federal awarding agency or pass -
through entity in accordance with applicable Federal awarding agency policy.
cityofPoT '' 250 Madison Street, Suite 1 Port Townsend, WA 98368 360 385 2700 www atyofpt us
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PURCHASING
MATRIX - BID LIMITS
& SIGNING AUTHORIZATION
(Always include
applicable sales tax
when determining dollar amounts)
Under $500
No requirement
Payment off signed invoice (or use
Department head or
purchase card if within limits)
designee
No contract required
Employee personal
reimbursement if approved by
supervisor
W-9
$500-$7,500
No requirement, but three
Payment off signed invoice (or use
Department head or
estimates recommended
purchase card if within in limits)
designee
May use MRSC Vendor
W-9
Roster, State contract, or
interlocal agreement
Select lowest qualified
vendor
_
....
$7,501-$25,000
.., .......
Obtain three telephone tlnµtlnµ
>
Purchase order if $10,000
Department head (if
and/or written quotations
within budget
or use formal bidding
Requisition form & signed invoice
appropriations)
May use MRSC Vendor
W-9
Roster, State contract, or
interlocal agreement
Select lowest qualified
vendor
�.._...
_...._
Must either:
Pu........ _w.......................
rchase order
City Manager (if
$25,001
formally bid, use
within budget
$75,000
State contract, or
Requisition form & signed invoice
appropriations)
interlocal agreement
W-9
Select lowest qualified
vendor
Must either:
Purchase order
Council approval'
$75,001 or more
formally bid, use
State contract, or
Requisition form & signed invoice
Contract and/or
interlocal agreement
invoice signed by City
W-9
Manager
Select lowest qualified
vendor
$25,000 or less
Required to have three
Small public works contract
Department head or
estimates
designee
Insurance
May use MRSC Small
Works Roster
W-9
Award to lowest qualified
Prevailing wage (Contractor may
contractor
use Combined Intent/Affidavit
Form for projects $2,500 or less)
Alternatively, may use day
labor (City staff)
5% retainage or retainage bond,
unless waived in advertisement by
City Manager, department head,
or designee
Performance and payment bonds,
unless waived in advertisement by
City Manager, department head,
designeeor
Less than $$75 000
Obtain estimates from at
a
S llpubl c works contract
City Manager for less m
Limited Small Public
least three contractors on
than $75,000
Works process
MRSC Small Works Roster"
Insurance
W-9
Contracts over these
Award to lowest qualified
limits require Council
contractor
Prevailing wage
approval
Alternatively, may use
5% retainage or retainage bond,
Contract signed by
formal bidding or day
unless waived in advertisement by
City Manager
labor (City staff)
City Manager
Performance and payment bonds,
unless waived in advertisement by
City Manager
Contractor may choose to have
10% retainage held instead of
providing performance and
payment bonds
Purchase order (encumbrance) if
� .........._.,....
>$10,000, except capital projects
$350Smal� 00 or I_._
less
i
Obtain estimates from at
Small public works contract
........_ .. ..... , ..('see..,
Council approval (see
Public Works Roster
least five contractors on
above)
process
MRSC Small Works Roster
Insurance
Contract signed by
All contractors in
W-9
City Manager
applicable roster category
._......�,._,.�_......... .............must be given opportunity Prevailing wage
to submit estimate before
any contractor can be 5% retainage or retainage bond,
solicited again unless waived in advertisement by
City Manager 4
If project total is between
$250,000-$350,000, all Performance and payment bonds
contractors in applicable
category must be notified Contractor may choose to have
that project is being bid 10% retainage held instead of
providing performance and
Recommend bid deposits payment bonds for projects
for projects >$40,000 $150,000 or less
Alternatively, may use Purchase order (encumbrance),
formal bidding or may use except for capital projects
day labor (City staff) for approved in CIP
single trade projects
$75,500 or less and
multiple trade projects
$116,155 or less
Award to lowest qualified
contractor
Projects over $350,000 Must use publicly Public works contract Council approval
advertised formal bid
process Insurance Contract signed by
City Manager
5% bid deposit required W-9
Prevailing wage
5% retainage or retainage bond
Performance & payment bonds
Purchase order [except Capital
Projects approved in CIP]
1
Under $5,000 No requirement, but three No contract required Department head or
estimates recommended designee
Payment off signed invoice
Check requirements if
using federal funding 1 W-9
Prevailing wages may be required
for certain services (e.g.,
landscaping} _m........,
$5,000-$9,999 ........._...
equirement ...
No requirement,but
...
Professional services agreement
Department head or
recommend at least three
designee
estimates from firms on
Insurance
the MRSC Consultant
Roster
W-9
Request price quotes,
Purchase order (encumbrance) if
schedule, qualifications
requested
Check requirements if
Prevailing wages may be required
using federal funding
for certain services (e.g.,
landscaping)
Contract with lowest
_......
qualified vendor
$10,000-$19,999
...
Requestproposals.. ._..
q or
Professional......�........ .......... �
services agreement
...... ._._....... ........_,....
City Manager
estimates from at least
three firms on the MRSC
Insurance
Consultant Roster
W-9
Request price quotes,
schedule, and
Purchase order (encumbrance)
qualifications
Prevailing wages may be required
Check requirements if
for certain services (e.g.,
using federal funding
landscaping)
Contract with lowest
_... ........_...
qualified vendor
$20,000 - $75,000
Formal advertised RFP or
Professional services agreement
g ement
City Manager
RFg process
recommended
Insurance
Check requirements if
W-9
using federal funding
Purchase order (encumbrance)
Contract with lowest
qualified vendor
Prevailing wages may be required
for certain services (e.g.,
landscaping)
$75,000 or more .....� _._....
...advertised RFP or
Formal,
Professional services agreement
Council approval c"
RFQ process
recommended
Insurance
Contract signed by
City Manager
Check requirements if
W-9
using federal funding
Purchase order (encumbrance)
Contract with lowest
qualified vendor
Prevailing wages. may be require.
for certain services (e.g.,
landscaping)
i
l
f
�fi /
Any dollar amount Must publish need for Professional services agreement City Manager if less
services in advance than $75,000
Insurance, including professional
May use MRSC Consultant liability $75,001 or more
Roster requires Council
W-9 approval
Firms submit statement of
qualifications Purchase Order if > $10,000
Award based on
qualifications, not price
Some A/E contractor
funding agencies may
require their own contract
and/or contract language
placed int eh city contract.
Verify with funding
agency.
I The City Manager may sign contracts for purchase of goods greater than $75,000 if they specifically implement
the annual budget and result from the aggregation of approved budgetary programs and services for the current
year (PTMC 3.46.110(A)(1)).
x For projects under $50,000, you may use the Limited Small Public Works process, which requires estimates from
at least three contractors on the roster.
The City Manager may sign public works contracts up $75,000 for multiple trades if the contract is time -sensitive
and a delay in bringing the matter before Council would cost the City time and money.
4 Retainage is not required for federally funded transportation projects through the Federal Highway
Administration. Check grant documents for specific requirements. If the local government waives retainage, they
assume liability of contract non -payments but due retain the right of recovery from the contractor.
M Federally funded or assisted public works projects over $2,000 require payment of Davis -Bacon wage rates
determined by the U.S. Department of Labor.
The City Manager may sign professional services contracts, including architectural, engineering, legal, or
consulting services, up to $75,000 if the contract is time -sensitive and delay in bringing the matter before Council
would cost the City time and money.
r Once a contract has been awarded the City Manager may sign invoices that exceed $75,000 as long as the total
cost of the project does not exceed the approved contract amount or where change orders do not exceed council
authorized limits for City Manager purchase or contract authority.
1.0 Introduction
1.1 Purpose of the Manual
1.2 Contact Information
1.3 Code of Ethics (RCW 42.23)
1.4 Conflict of Interest
1.5 Unauthorized Purchases
1.6 Sustainable Purchasing
1.7 What This Manual Covers
1.8 Define the Need
1.9 Determine the Cost
1.10 Determine Contract Value
1.11 Exemptions to the Competitive Bidding Process
1.12 Declared Emergency
2.0 New Procurement
2.1 Initiate a New Procurement
2.2 Purchases of Goods, Supplies, & Equipment
2.2 (a) SMALL Purchases of Goods, Supplies, & Equipment ($7,500 or less)
2.2 (b) INTERMEDIATE Purchases of Goods, Supplies, & Equipment ($7,501-$15,000)
2.2 (c) LARGE Purchases of Goods, Supplies, & Equipment ($15,001 or more)
2.3 Food and Beverage Purchases
2.4 Piggybacking (State Contracts and Interlocal Purcha sing Agreements)
2.5 Public Works
2.6 Limited Small Works
Process (Public Works Projects under $50,000)
2.7 Small Works Roster
Process (Public Works Projects $350,000 or less)
2.8 Formal, Competitive Bid
Process (Required for Public Works Projects over $350,000)
2.9 Equipment Purchases Including installation
2.10 Unit Priced Contracts
2.11 Services
2.12 Purchases of Architectural & Engineering Services
2.13 RFPs and RFQs
2.14 Bid Opening Process
2.15 No Bids or Non-Responsive/Responsible Bids or Submittals
2.16 Contracting 101
3.0 Other Considerations
3.1 Rule 171- Sales Tax Exemptions
3.2 Prevailing Wages
3.3 Retainage
1
1
1
2
2
3
4
4
5
6
6
7
8
9
9
9
9
10
11
12
14
15
16
16
17
17
18
18
19
20
21
23
24
26
28
29
31
31
31
33
4.0 Contract Administration
34
4.1 Risk Management Considerations
34
4.2 Payment Options
34
4.3 Contract Execution & Administration
35
4.4 Contract Monitoring - Performance
36
4.5 Contract Monitoring - Payment
37
4.6 Amendments & Change Orders
38
4.7 Contract Close -Out & Termination
39
5.0 Surplus and Disposition of Assets
41
5.1 General Information
41
5.2 Declaring Surplus
41
5.3 Disposition of Personal Property
42
5.4 Seizure Items (RCW 69.50.505)
43
5.5 Surplus of Real Property (Land)
43
6.0 Purchasing Cards
43
6.1 Purchasing Cards as a Method of Payment
43
6.2 Purchasing Card Administration
44
6.3 Authorized Charges and Uses
45
6.4 Unauthorized Purchases
45
6.5 Returns and Exchanges
46
6.6 Account Maintenance
46
7.0 Definitions and Acronyms
481
1.1 Purpose of the Manual
The Purchasing Policies and Procedures Manual guides and assists City staff
with basic procurement and contracting requirements as set forth in the City
of Port Townsend Municipal Code (PTMC) Chapter 3.46 and Washington
State statutes.
This manual establishes policy guidelines and clarifies the procedures for
purchasing supplies and materials, public works construction, and
contracting for services by the City of Port Townsend. The procedures set
forth in subsequent sections of this manual are designed to assure the
citizens, the City Council, and City administrative staff that the City is
receiving maximum value for each tax and utility dollar expended and to
ensure fiscal responsibility in the procurement process. All employees and
City representatives must follow these policies and procedures.
All references to the Revised Code of Washington (RCW) and City Ordinances
and Resolutions shall be incorporated as part of this manual, including all
future amendments. In cases where these policies conflict with any City
Ordinance or State or Federal Law or Regulations, the terms of that law or
regulation prevail. In all other cases, these policies apply.
1.2 Contact Information
Name
Finance Director/Manager
Finance ... ..._� ....... ........w....�........
Director/Manager
Finance —Accountant/Finance Specialist........._........._ ..�_......
City Attorney/Legal Asst,.....
Finance Technician III
1
Responsibility
Fiscal con
trol, policy, & budget
Grants & capital improvement
program
Contracts and bidding process
Accounts payable & vendors,
ordinary purchases of supplies,
materials, maintenance, and
equipment; surplus & disposition
of assets; purchasing cards
1.3 Code of Ethics (RCW 42.23)
This section of the manual should be interpreted in tandem with the City
of Port Townsend Personne
L 1L Policy Manual Chapter 2.1 (Code of
Conduct) and PTIVIC ChppAgj,,,?.,.4Q. Please also refer to RCW 42.23 (Code
of Ethics for Municipal Officers — Contract Interests). A municipal officer
includes all elected officials, advisory board members, and City
employees.
City employees are expected to represent the City in a professional and
accountable manner that is courteous, helpful, and efficient. Employees
shall conduct their public and private actions and financial dealings in a
mannerthat shall present no conflict of interest between the public trust
and their private interest.
Actions of City employees, when purchasing supplies and services,
should be fair and impartial and not be used for personal gain or benefit.
Public employment shall not be used for personal gain, and City
employees may neither solicit, accept, nor agree to accept any
compensation, gratuity, or reward for themselves, their families, or
others that results in their personal gain or which may affect their
impartiality in making decisions on the job. Discounts or concessions
realistically available to the general population, items received that do
not result in personal gain, and samples for general City use are examples
of items that are not gratuities. Personal judgment should be used, and
questions regarding particular situations should be referred to the
employee's supervisor or department head.
Personal gifts or gratuities that might influence or give the appearance
of influencing purchases of goods or services must be declined.
Employees may not willfully circumvent purchasing and procurement
policies and procedures to enter into contracts or purchase goods and
services. Any contract made in violation of this policy manual, City code,
or State statutes will be considered null and void, and the employee or
officer may be subject to discipline or dismissal. Willful disregard of these
policies and statutes when purchasing goods and services may also be
subject to discipline and/or dismissal from service. Please see PTMC
2.80.060 (Penalties) for reference.
1A Conflict of Interest
No City staff or Council member may undertake consulting, professional
practice, or other assignments that would result in a conflict of interest. Any
2
City employee or Council member who recommends or approves a purchase
and has any financial interest in the firm involved in the purchase shall
disclose his or her interest prior to recommending or approving the
purchase.
No city staff or Council member may participate in the selection, award, or
administration of a contract supported by a Federal award if they have a real
or apparent conflict of interest. Such a conflict of interest would arise when
the City employee or Council member, any member of their immediate
family, their partner, or an organization which employs or is about to employ
any of the parties indicated herein, has a financial or other interest in or a
tangible personal benefit from a firm considered for a contract. Any willful
violation will be subject to disciplinary action according to LTMC .8Q,.0 0.
1.5 Unauthorized Purchases
PURCHASES FOR PERSONAL USE ARE NOTALLOWED. The person
ordering the unauthorized and unjustified purchase is personally liable
for the costs of the purchase or contract and may be subject to
disciplinary action, up to and including termination of employment. If
the purchase was made without proper authorization but is in fact a
justified purchase, then the department head has the option to
approve the purchase after the fact.
When representing the City through purchasing goods and services,
employees are prohibited from doing the following:
• 'Bid Splitting" —A capital (public work) project means a
complete project. The project may not be split into units or
classes of work to avoid the restriction on work that may be
performed by day labor or other bid rules.
• Purchase breakup — Purchases that exceed authorization limits
or exceed the quote requirements should not be split up to
circumvent the purchasing policies and procedures.
• Purchasing alcohol or personal entertainment goods and
services.
• Generating a purchase order. Only the Legal Department or
Finance Department have the authority to generate a purchase
order (encumbrance).
• Purchasing controlled commodities without prior approval
including the following:
o Cell phones, telephone equipment, pagers, etc.
o Computers and related equipment, fax machines,
printers, scanners, copiers, software, or systems
3
o Anything that IT staff is requested or required to install,
connect, service, maintain, or support
o Anything purchased using Equipment Rental and
Revolving Funds
o Using a City -issued purchase card for cash advances or
professional services
1.6 Sustainable Purchasing
The City shall acquire its goods and services in a manner that complies
with all federal, State, and City laws and other requirements (e.g., City
resolutions).
Environmental factors to consider in selecting products include:
• Pollutant releases, especially persistent bio-accumulative toxins
(PBTs)
• Waste generation
• Greenhouse gas emissions
• Recycled content [recommend using 30% recycled paper]
• Energy consumption
• Depletion of natural resources
• Potential impact on human health and the environment
Social equity factors that should be considered include but are not
limited to:
• Use of local businesses when allowable under bid rules
• Use of small, minority, and women -owned businesses
• Ergonomic and human health impacts
Fiscal factors to be considered include but are not limited to:
• Lowest total cost
• Leveraging our buying power
• Impact on staff time and labor
• Long-term financial/market changes
• Technological advances in a rapidly changing market
1.7 What This Manual Covers
The process of selecting vendors and managing contracts shall embody
the value of stewardship of public resources by providing the greatest
levels of both quality and value.
The goals are to ensure that the purchase process:
4
• Practices ethical behavior and conduct: Create purchasing
processes that are fair, open, and at least cost of public funds.
• Obtains value with public funds: Purchase goods and services
that are fiscally responsible, reduce resource consumption and
waste, perform adequately, promote advantages to lessor
advantaged segments of the community, and promote health and
well-being.
• Acts with integrity and ensures open and effective
communication: Be impartial in fact, as well as in appearance.
From Start to Finish...
Before any purchase is made, the following questions should be
answered:
• Define the need,— What kind of purchase is this?
• Determine the cost — How much will it cost?
• Process — How do I procure it?
• Protectin the Cit — How do we properly protect the City from
liability?
• Authority— Who must approve it?
• Contract administration,— What are my responsibilities?
1.8 Define the Need
The first question that should be answered is "What type of purchase is
this?" The major categories of purchases include:
Public Works: (RCW 3 4. 1)
Includes all work, construction, alteration, repair, or improvements other
than ordinary maintenance executed at the cost of the City:
Examples: demolition, remodeling, renovation, road construction, building
construction, and utilities construction.
Ordinary maintenance is generally considered to include work not
performed by contract and performed on a regular basis to service, check,
or replace items that are not broken. For purposes of prevailing wage
requirements, public works includes ordinary maintenance when performed
by contract. See Section 3.2.
Materials Su Res.kqd E uip nt.
Materials, supplies, and equipment are considered tangible items, which are
manufactured and are moveable at the time of purchase. It is important to
distinguish materials, supplies, and equipment used in public works
contracts from those in non-public works contracts, as different bidding
requirements apply to each.
Examples: office supplies, off -the -shelf software, hardware, trucks, copy
machines, auto parts, gravel, janitorial supplies, food, and beverages.
Services:
Distinguishing between services and public works is important, as services
have different bidding requirements. Services require the labor, time, or
effort of a human being and can include intellectual or physical work.
Examples: accountants, attorneys, elevator maintenance, instructors,
technology consulting, engineers, and land surveyors.
1.9 Detennine the Cost
Once the need has been defined, the estimated cost of the goods or services
will generally determine what competitive selection process you follow.
Estimated project costs for competitive bidding purposes must include:
• All construction -related work (except for engineering or
architectural design fees)
• All phases of the project
• Any permitting costs of the project
• All labor and materials required for the project
• All applicable sales and use taxes
The cost estimate should not include donated materials, labor, supplies, etc.
1.10 Determine Contract Value
Contract value refers to the total aggregate value of the contract, including
potential renewal periods. Examples of contract value are as follows:
• Example #1: A three-year contract for $40,000 per year is
considered a $120,000 contract.
• Example #2: A one-year, $8,000 professional services contract is
renewed for an additional year at $8,000. The aggregate value of
6
the contract becomes $16,000, which requires City Council
approval.
1.11 Exemptions to the Competitive Bidding Process
Exemptions to this policy must be approved in writing by the City Manager
when within his or her signing authority; otherwise, exemptions shall be
approved by City Council. Exemptions should make good business sense and
be in the best interest of the City. In all cases, it is the City's responsibility to
conduct a good faith review of all available providers.
Exemptions to competitive bidding requirements as provided in RCW
39.04. 80(1) and PTMC 3.46.090:
• Licensed or patented goods or services
• Specialized items that are compatible with existing
equipment or systems (i.e. water treatment plant
Sole source
filters)
• Meets City standards (i.e. meters)
• Factory -authorized warranty services
• Meets a specialized need of the City
• Items of special design shape, or manufacture that
Purchases involving
match or fit existing equipment, inventory, systems,
special facilities or
programs, or services
market conditions
. Items offered at highly favorable price that will be
sold before City can follow bidding process
Auctions, closeout, &
y when items can be purchased below marke • Only t
bankruptcy sales
cost
........ ........ .....�
Emergency purchases
._See Section 1.12....._..._..._...
or public works
Purchases of insurance il
Competitive bidding is not required for insurance or
or bonds
bond purchases
..........__........._. ...ry........
• The City Ma . ... ...... ........ . . m. _ ._...__ ...
Hager, upon approval by City Council,
may proceed to acquire real property through
negotiation
• Negotiations must be based upon an independent
Real property
appraisal of the property
• The City will not pay more than market value
• If purchased with federal funds, the acquisition shall
comply with the Uniform Real Property Acquisition
and Relocation Assistance Act of 1970, as amended
• The City may by agreement acquire, sell, or
Surplus property (RCW
exchange surplus property to or from another
39.33.010)
government without the use of bids
VA
Interlocal agreements . See Section 2.4
(Piggybacking)
Exem tion process.
Complete a written request to the City Manager or City Council (depending
on signing authority) explaining why this option is the only option, makes
good business sense, and is in the best interest of the City. Explain what
features, knowledge, or qualifications the vendor can provide that are not
available from other sources. Outline steps taken to verify that this is the
only vendor available, which could include:
(1) internet search
(2) calls to vendors or contractors on MRSC rosters
(3) advertisement in paper with a "Notice of Intent to Contract"
(4) advice from expert consultant in service area
This request should be signed by the requestor. Use the Sole Source
Justification Form if applicable.
1.12 Declared Emergency
For purposes of this section "emergency" means unforeseen circumstances
beyond the control of the City that either: (a) present a real, immediate
threat to the proper performance of essential functions, or (b) will likely
result in material loss or damage to property, bodily injury, or loss of life if
immediate action is not taken. Competitive bidding may be waived subject
to the following process:
1. Staff (usually a department head) identifies an urgent need and
requests that the City Manager declare an emergency.
2. Upon approval from the City Manager, the department authorizes
work and/or equipment procurement required to address the
emergency.
3. Department drafts a memorandum explaining the basis for the
emergency and the selection of the particular vendor. This
memorandum should be included in the contract file.
4. Request that the Legal Department draft a contract.
5. Department schedules the contract award on next City Council
agenda. City Attorney and department head prepare materials
necessary to ratify the emergency declaration finding.
8
2.1 Initiate a New Procurement
The City makes many small and large purchases over the course of the year
and must comply with State and local laws for each type of procurement,
based on type of work, dollar limits, and level of risk involved.
See the matrix at the beginning of this manual for a summary of the types
of new procurements typically performed at the City of Port Townsend.
City staff may also initiate new procurements through purchasing card
purchases (see Section 6.0) and by requesting reimbursement for
purchases made with the employee's personal funds. It is recommended
that employees use a purchasing card for small purchases whenever
practicable and allowed by City policy.
2.2 Purchases of Goods, Supplies, & Equipment
2.2 (a) SMALL Purchases of Goods, Supplies, &
Equipment ($7,500 or less)
Small purchases of goods, supplies, materials, and equipment $7,500 or less
can be made using one of the following processes:
BN/, ��
IS
a 'i
INW1110111611111'
Purchasing Card (see
Contact
Business -related
Alcohol, capital
Section 6.0)
Finance if you
purchases of
equipment, cash
need to know
goods and
advances, consulting
It is strongly recornmended
your limits.
services (i.e.,
services, personal
you use a city purchasing
subscriptions,
items, professional
card ors. personal credit card
Sample limits:
seminars, meeting
services, meals while
All receipts must be retained
$500 single
supplies,
traveling
and turned into supervisor
purchase;
maintenance,
for approval.
$150o
repair,
monthly billing
operations, office
cycle limit
supplies,
computer
Exceptions may
peripherals,
be made with
software
the Finance
subscriptions)
Director's
approval
Personal/employee
Up to $1,000
Incidentals such
Reimbursement
as postage, ferry
Personal credit
tolls, parking fees,
card use must
hotel fees, CDL
be approved by
license, etc.
dept. head.
Vendor Invoice
$7,500
Contracted
supplies
All invoices MUST be
addressed and/or shipped
Goods at low risk
to the City of Port
and not otherwise
Townsend and have an
covered under a
invoice number, date of
contract or
purchase, and description
purchase order
of item purchased.
Regular business -
related goods and
services
Capital expenditures
Although there are no bidding requirements for goods purchases between
$500 and $7,500, it is recommended that City staff obtain estimates from
three vendors, preferably off the MRSC Vendor Roster. Staff may also use a
State contract or interlocal agreement ("piggybacking"). The applicable
department head or designee has invoice signing authority.
Purchases of goods under $500 do not require quotes, but staff may solicit
estimates from the MRSC Vendor Roster or use a State contract or interlocal
agreement ("piggybacking"). The applicable department head or designee
has invoice signing authority.
All payments made by a check issued by the Finance Department require a
W-9 from the vendor.
2.2 (b) INTERMEDIATE Purchases of Goods, Supplies, &
Equipment ($7,501-$15 )
Purchases of goods, supplies, materials, and equipment from $7,501 to
$15,000 should be made using a purchase order if over $10,000 and a vendor
invoice for payment. Purchases in this category could also be made using a
State contract, interlocal agreement, or formal sealed bidding.
Employees may not use a purchase card or personal payment for
reimbursement unless previously approved by their department head and
within card limits.
When making purchases from $7,501 and $15,000, staff should obtain at
least three telephone or written quotations from vendors on the MRSC
10
Vendor Roster. The applicable department head has invoice signing
authority.
A purchase order or written agreement may be required. Check with the
Finance Department for additional requirements.
All purchases in this category require a W-9 from the vendor.
2.2 (c) LARGE Purchases of Goods, Supplies, &
Equipment ($15,001 or more)
Per RCW "3' 23,35(), any purchase of material, supplies, and equipment
with a cost exceeding $15,000 requires formal, competitive bidding or the
use of a State contract or interlocal agreement.
Forman Biddin Process:
I UI
11101 Mill
111/12M,
1,
Identify grants or federal
Notify Accountant in Finance
.....
funds as applicable
....,,, _.......................
2.
Prepare bid documents
Include:
# Invitation to bid
* Instructions and information for bidders
• Bid proposal template
o Bid bond template
• Bidder's statement of qualifications template
• Sample contract
• Insurance requirements
Contact Legal Dept. to review prior to finalization
of bid package
3.
Prepare product
Considerations: warranties, delivery, liquidated
specifications
damages
4.
Advertise, publish, .._....................
and
...... .... .....
Advertise in official newspaper
notify
Publish bid on Builder's Exchange
Email notification to recommended roster
participants (if any)
5.
Addenda required?
Department to write addenda, notify plan
holders, and post online
6.
. ............ .............
Schedule & conduct bid
_.._. _ _...,..........
Department to schedule conference room and
opening
open and read sealed bids
11
7
Bid Award
Determine the lowest, responsible, responsive
bidder
Prepare Council agenda materials if $30,000 or
more
Prepare purchase contract (or contact Legal
Department if needed)
Obtain vendor signature and forward to Legal
Assistant
Give Legal Assistant or Finance BARS code and
request purchase order/encumbrance.
Obtain W-9 for Accounts Payable
Do not notify non -selected bidders about award
until contract is fully signed
...... --------- ....,... _ .......ry..
The City Manager has signing authority for purchases less than $30,000. All
purchases totaling $30,000 or more require City Council approval. Consider
the entire cost of the purchase for all years (for example, maintenance costs)
involved when determining the approval level. Contact the Finance or Legal
Department with questions on total contract value.
All purchases in this category require a W-9 from the vendor.
2.3 Food and Beverage Purchases
Generally, consuming food and beverages at public expense will be
discouraged. The consumption of nourishment is ordinarily regarded as
private and personal and not a public activity. (This includes light snacks.) In
the occasion where food and beverages are approved for purchase, in all
circumstances the department head and/or the City Manager must pre -
approve the purchase(s) and the department must have adopted budget
appropriations.
The following outlines circumstances when the City will provide for the
consumption of food and beverages:
1. Meal reimbursements while in travel status. Please refer to the City of
Port Townsend Personnel Policy Manual, Section 5.7 for meal per diem
policies.
2. Light refreshments and/or meals maybe purchased by the City when:
12
• Employees or officials attend a special meeting, training, or similar
circumstance where the purpose of the event is to discuss City
business, AND
• It provides benefit to the City, AND
• The refreshments are an integrallnecessaryl2art of the meetin or
tralnin session for the em to ee or official to receive the full
benefit of the meetin and 'or training. (e.g., a working breakfast,
lunch, or dinner), AND
• The meeting or training session takes place away from the
employee or official's regular workplace, AND
• Receipts for actual costs of the refreshments/meals are kept with
documentation of who was in attendance and the ur ose of the
rrlei'tln raiClins ' ion.
3. In emergency situations when a department head determines that
employees or intergovernmental employees performing critical City
functions must remain at their workplaces, providing
refreshments/meals will be allowed if the department head pre -
approves the purchase.
4. Meals and/or refreshments for employee, official, volunteer, wellness,
public, or occasional appreciation events when:
• The City Manager and/or department head has approved the
purchase(s) in advance and documentation of such is evident, AND
• Receipts for actual costs are kept with documentation of who was
in attendance and the purpose of the event, AND
• The meal/refreshment purchases for the event is approved through
budgeted appropriations.
Prohibited purchases of refreshments include the following circumstances
and will not be reimbursed by the City:
1. Meals and/or refreshments that were not pre -approved by the
department head and/or the City Manager.
2. Meals and/or refreshments that were not approved in budgeted
appropriations.
3. Purchase of alcoholic beverages.
13
2.4 Piggybacking (State Contracts and Interlocal
Purchasing Agreements)
1ae�ct Pl laacira Process
The City has signed a master contract with the Washington State
Department of Enterprise Services (DES) to use the State's contracts for
goods and services. When using a State contract, we are "piggybacking" off
their competitive process, eliminating the need to perform our own. The City
encourages the use of these contracts whenever possible.
�����
�����I!JI�JJI�������������I
1.
R �
Review State contract
Contact Finance Department with process
website for piggybacking
questions
requirements
.ry...e,
2.
2,
Contact vendor to verify
all aspects of purchase,
Obtain details regarding l e
they will honor State
including invoicing, availability, delivery, etc.
contract pricing
µdevelop
3.
Contact Finance Dept.
Finance or Legal Asst. will a purchase
order for the good/service if contract value >
$10,000 or otherwise required by the vendor
3.
Contact buyer to place
Place order and process invoice for payment.
order
Provide Finance Department with BARS and
It is highly recoromended
State contract number for purchase order
that oll a,yie etrients to
._........_.....
clto whiting
<',t(7CUrYYF't?tC ............ ._
... ............. ...._.....�.........., .... ..... ._ �..,........... .............
State contracts include standard terms and conditions. When piggybacking
off a State contract, all State contract terms and conditions apply. Contact
the Legal Department if any contract terms do not suit the City's needs. Only
certain particulars can be changed, such as quantity and delivery terms.
Interlocal PurchgsLing reements
The process described above for State contracts can also be used to
purchase goods and services through other agencies' contracts. However,
the following additional steps must be taken by City staff:
1. Read the other agency's contract carefully to confirm that it allows
other agencies to use it.
2. Document that the purchase was made according to the other
agency's bidding requirements and our bidding requirements.
Contact the Legal Department for assistance. This is best done by
14
requesting and retaining copies of all bid documents from the other
agency.
3. Confirm that the City has a current interlocal purchasing agreement
with the agency before making the purchase.
4. If we do not have an agreement, contact the purchasing coordinator
at the other agency to request one. Contact the Legal Department
for assistance in processing the agreement.
Note: Be particularly careful about documentation when piggybacking off a
contract from an out-of-state agency or a different type of agency (for
example, a school district or port district). The authorization limits shown on
the matrix at the beginning of this manual apply to purchases through State
contracts and Interlocal Agreements.
2.5 Public Works
Bid Limit:
According to 1', v/V rI" a second-class city, such as Port Townsend,
may construct a public work by contract or by day labor (City staff) without
calling forbids when the estimated cost of the work will not exceed $116,155
if more than one trade is involved or $75,500 if a single trade is involved.
When the cost of a public work exceeds these figures, the project should be
done by contract through formal sealed bidding, except that the City may
use the small works roster process for projects up to $350,000.
Determinine the Cost of a Public Work:
The total construction cost of each project must be estimated in order to
correctly apply bid limit dollar amounts to determine if a public works project
must be competitively bid. This estimate may be prepared by an outside
third party; however, the final cost estimate must be validated by the City.
The total construction cost (estimated as if the project were to be bid) should
include materials, supplies, equipment, and labor for that project AND
applicable sales and use taxes. However, the value of volunteer labor,
donated materials, or donated equipment need not be included in the cost
estimate for a public works project, as these are not a cost to the City.
For projects completed by any means other than a contract or small works
roster process (for example, using City workers) having an estimated cost
exceeding $25,000, the City must publish a description of the project and its
estimated cost in the official newspaper at least fifteen days before
beginning work, as required by R 1r1
1s
Acid S _it. :
k �vv '.' _ �,,µ.' �.�;'J) prohibits the division of a project into units of work or
classes of work to avoid the restriction on work that may be performed by
day labor on a single project.
Small Works Roster:
When the estimated cost of a public works project is $350,000 or less, the
City may follow the small works roster process for construction of a public
work or improvement as an alternative to the general competitive bidding
requirements, in accordance with �( `/.m �'ai �� �m r. The City of Port
Townsend has contracted with the
Ui for use of its statewide electronic database for small
public works contractors, vendors, and consultants.
Publication:
At least once a year, on behalf of the City, MRSC publishes notice in local
newspapers of the existence of the rosters and solicits the names of
contractors for the rosters. Responsible contractors can be added to the
appropriate MRSC roster(s) at any time that they submit a written request
and necessary records. The City may require contracts to be signed when
project awards are made using a small works roster.
2.6 Limited Small Works Process (Public Works Projects
under $50, )
If a public work, construction, alteration, repair, or improvement project is
estimated to cost less than fifty thousand dollars ($50,000), the City may
use the limited public works process instead of formal, competitive bidding,
as provided in RCW 39.04.155(3).
Process:
1. Develop a scope of work describing the nature of the work to be
performed and materials and equipment to be furnished. Detailed plans
and specifications need not be included in the invitation.
2. Solicit at least three contractors on the MRSC Small Works Roster for the
applicable category or categories. Requests for estimates should include
the date, time, and location to return the estimate. Notify contractors
that:
a. they must pay prevailing wage;
b. the City must equitably distribute opportunities among
contractors in the geographic area;
c. the City will require a performance bond and a payment bond,
each for the total cost of the project; and
16
d. the City will hold 5% retainage until releases are received from
the State (RCW 60.28.011), unless waived by staff member with
contract signing authority.
Note: The City staff member with contract signing authority
may waive the bond and retainage requirements; however,
contractors must be notified about this waiver in the request for
estimates and/or advertisement for the project.
Note: If payment and performance bonds are required, the
contractor may choose to have 10% retainage held instead of
obtaining bonds.
3. Determine the lowest responsive, responsible bid.
4. Send the Legal Assistant copies of all estimates or a list of all contractors
contacted and their bid amounts. (We are required by law to maintain a
list of contractors contacted under the limited public works process.)
5. The Legal Assistant will make sure the contractor meets all bidder criteria
and will draft a contract.
6. If project total is over staff signing authority, contact the City Clerk to
schedule contract approval on an upcoming City Council agenda.
7. After Council approval, send the draft contract to the contractor along
with a request for items identified by the Legal Assistant (for example,
W-9 and proof of insurance).
Note: All projects require a W-9 from the contractor.
Alternative to Process»
Local governments may waive retainage but must assume liability of
contractors for non-payment. The local government has the right of
recovery from the contractor.
2.7 Small Works Roster Process (Public Works Projects
$350,000 or less)
If a work, construction, alteration, repair, or improvement project is
estimated to cost $350,000 or less, the small public works process may be
used instead of formal, competitive bidding, as allowed by �4
Process:
1. Develop a scope of work describing the nature of the work to be
performed and materials and equipment to be furnished. Detailed plans
need not be included be included in the invitation.
17
Note: For projects totaling $250,000-$350,000, all contractors in the
applicable category must be notified that the project is being bid, even if
they are not invited to bid.
2. Contact at least five contractors on the MRSC Small Works Roster for
the applicable category or categories. Requests for estimates should
include the date, time, and location to return the estimate. Notify
contractors that:
a. they must pay prevailing wage;
b. the City will require a payment bond and a performance bond,
each for the total cost of the project; and
c. the City will hold 5% retainage until releases are received from
the State (RCW 60.28.011).
Note: The City staff member with contract signing authority
may waive retainage requirements; however, contractors must be
notified about this waiver in the request for estimates and/or
advertisement for the project.
Note: For projects totaling $150,000 or less, the contractor
may choose to have 10% retainage held instead of obtaining bonds.
Note: The city will retain the right of recovery from the
contractor if retainage is waived.
3. Determine the lowest responsive, responsible bid.
4. Send the Legal Assistant or Engineering staff (for capital projects) the
estimate for the lowest bid and expected project dates. (The City's
"Small Works less than $350,000 Documentation Form" may be used.)
5. The Legal Assistant or Engineering staff will make sure that the
contractor meets all bidder criteria and will draft a contract.
6. Contact the City Clerk to schedule the contract approval for an upcoming
City Council meeting.
7. Draft agenda bill and resolution, if applicable, and send to City Attorney
for review.
8. After Council approval, send the draft contract to the contractor along
with a request for items identified by the Legal Assistant or Engineering
staff, such as proof of insurance and a W-9.
2.8 Formal, Competitive Bid Process (Required for Public
Works Projects over $350, )
Formal, competitive bidding must be used for all public works projects over
$350,000; however, it may also be used for any projects below this
threshold. Competitive bidding is designed to prevent favoritism in
awarding public work contracts and to enable local governments to obtain
18
the best work or supplies at the most reasonable prices. It is also designed
to provide a fair forum for bidders and to protect the public interest.
Biddin roc ss:
1. Coordinate with Accountant in Finance if using grant or federal
funds.
2. Draft or work with consultant to draft bid package and send to City
Attorney for review.
3. Draft a notice to bid, stating the nature of the work.
4. Notify bidders that bids must be sealed, and a 5% bid deposit is
required, in the form of a cashier's check, postal money order, or
surety bond.
5. Have the notice to bid published in the City's official newspaper
(currently The Leader) at least 13 days prior to the date bids are
due. Staff may choose to publish notice in additional newspapers,
such as the Daily Journal of Commerce.
6. Post the bid on Builder's Exchange.
7. City Administration receives and date and time stamps sealed bids.
8. Hold a public bid opening after the bid deadline closes.
9. Identify the lowest responsive, responsible bidder.
Note: If the contract is not awarded to the lowest bidder, a full and
complete statement of the reasons for selecting another bidder
must be prepared, approved by the City Manager, and retained in
the file, See RCW 35..3.352 2 or Section 2.15.
10. Notify the City Clerk to add approval of the project contract to an
upcoming City Council agenda.
11. Draft an agenda bill and resolution, if applicable. Ask the City
Attorney to review.
12. Following Council approval, ask the Engineering Dept. (capital
projects) or Legal Assistant (other projects) to draft a contract.
13. Send draft contract to contractor with request for additional items
identified by Engineering staff or the Legal Assistant.
14. After the contract has been fully signed, send a copy to the
contractor and return all bid bonds, except for the one submitted
by the successful bidder.
2.9 Equipment Purchases Including Installation
prohibits the division of a public works project into units
of work or classes of work to avoid the restriction on work that may be
performed by day labor on a single project.
Occasionally projects include the direct purchase of equipment separate
from the installation. For example, the City purchases equipment for
19
$50,000 off a State contract, and the installation is estimated to cost
$25,000.
Because we cannot split public works into units to avoid the bidding process,
we must combine the cost of the two purchases and treat them as one to
establish the "project cost." In this example, the cost of the entire project is
$75,000 (equipment @ $50,000 + installation @ $25,000), which exceeds
the City's limited public works bid threshold of $50,000. Therefore, the
public work installation must be awarded using the small works process or
formally bid (see Sections 2.7 and 2.8 above). The purchase of the
equipment can be made using the State contract (see Section 2.4 above).
What kind of contract do we use?
For this project, because the public works installation is under $350,000, we
would use a small public works contract. Usual contract requirements that
apply to small public works projects apply to this project. Because the total
project cost is $75,000, this contract would have to go to City Council for
approval.
There are so many variables to this type of purchase that it would be difficult
to highlight every possible scenario. Please contact the Finance Department
or Legal Department for assistance.
At royal Process:
Refer to the Public Works section of the matrix at the beginning of this manual.
2.10 Unit Priced Contracts
RCM! 3M 2 allows the City to use unit priced (or on -call) contracting for
public work projects that are expected to happen on a recurring basis, such as
tree trimming, road resurfacing, or public facility maintenance. Unit priced
contracts means a competitively bid contract in which public works are
anticipated on a recurring basis to meet the business or operational needs of the
city or town, under which the contractor agrees to a fixed period indefinite
quantity deliver}, of work, at a defined unit price for each category of work.
Whenever possible, the city must invite at least one proposal from a certified
minority or women contractor who otherwise qualifies.
Unit priced contracts must be executed for an initial contract term not to exceed
three years, with the city or town having the option of extending or renewing the
unit priced contract for one additional year.
Invitations to bid for these contracts shall include, for purposes of the bid
evaluation, estimated quantities for the anticipated types of work and specify how
T
the City will issue or release work assignments, work orders, or task
authorizations based on the hourly rates or unit prices bid by the contractor.
Contracts must be awarded to the lowest responsive, responsible bidder.
Unit priced contractors shall pay prevailing wages and update rates annually.
Intents and affidavits for prevailing wages paid must be submitted annually for
all work completed within the previous twelve-month period of the unit -based
contract.
Note: 7 he Cite is also allowed (by li-(, j � w.l� ? to obtain public works services byJob
order conti acts; however; these contracts are for a broader scope than unit priced contracting and
require that 90% of the work be performed bj, subconlyaclors. Please consult with the City
Attorney for more information.
2.11 Services
There are three types of services that the City may need to obtain:
1. Professional services (also called personal services) are provided by
independent contractors with specialized knowledge, advanced
education, professional licensing, or certifications; the primary service
provided is mental or intellectual, involving the consistent exercise of
judgment and discretion.
2. General services (also known as purchased services) include all service -
related work not considered a public work or professional service. Most
often these are routine in nature (i.e. yearly, monthly, weekly, etc.).
Examples include courier services, weeding, and vehicle inspection
services. State law does not require a competitive process for the
selection of general services, with the exception of the City newspaper.
3. Architectural, engineering, land surveying, and landscape architecture
services (A&E) are addressed in Section 2.12 below. Section 2.11 does
not apply to A&E services.
The City uses MRSC's Consultant Roster, which distinguishes architectural
and engineering services as defined in RCW 39.80.020 from other consulting
services. Consultants can be added to the appropriate roster when they
submit a written request and necessary records to MRSC. The City reserves
the right to publish an announcement on each occasion when professional
or other services are required.
To ensure a more competitive process, the City has adopted tighter
standards for selection of service providers than required by State law.
Unless the City Manager approves in writing an exemption based on the best
interests of the City, staff shall follow these guidelines for selection of
professional or general services:
21
• Under $5,000— No competitive process required. It is still incumbent on
the department to ensure that the price is reasonable, and the provider
is qualified. It is recommended to request prices, schedules, and
qualifications from three consultants on the MRSC Consultant Roster.
• $5,000 to $9,999 — It is highly recommended to request prices,
schedules, and qualifications from at least three consultants on the
MRSC Consultant Roster.
• $10,000 to $19,999 — Request proposals from at least three consultants
on the MRSC Consultant Roster (with one having a MWDBE classification
when possible) or use an RFPJRFQ process.
• $20,000 or more — Formal advertised RFP or RFQ process
recommended.
Note: Some general services, such as landscaping work, require payment
of prevailing wages. Contact the Legal Department with questions.
Contract Award Process:
1. Develop scope of work.
2. Determine budget amount for work.
3. If grant funds are involved, check the grant agreement requirements.
4. Obtain proposals or conduct formal bidding as required above.
5. Evaluate the proposals and negotiate a contract with the lowest
qualified, responsible bidder.
6. If Council approval is required, contact City Clerk for meeting date. Draft
agenda bill and resolution, if applicable, and send to City Attorney for
review.
7. After Council approval (if required), contact the Legal Assistant with a
copy of the estimate and other relevant information, such as project
start and end dates.
8. Legal Assistant will prepare a draft Professional Services Agreement.
9. Send contract to service provider for review and signature, along with
request for documents identified by Legal Assistant, such as W-9.
10. Forward signed contract and additional documents to Legal Assistant for
processing.
11. Forward fully signed contract to contractor and arrange for project
start.
AAproval Limits:
For the approval limits, refer to the Services section of the Purchasing Matrix
at the beginning of this manual.
22
2.12 Purchases of Architectural & Engineering Services
Architectural, engineering, land surveying, and landscape architecture
services (frequently referred to as "A&E") are to be acquired under the
authority and procedures outlined in chapter RCW 39.80.
RCW 39.80.030 requires that the City publish advance notice of its need for
A&E services. The City may comply with this section by (1) publishing an
announcement on each occasion when professional consultant services are
required or (2) announcing generallyto the public its projected requirements
for any category or type of professional service.
A&E consultants are initially selected based upon their qualifications, rather
than price (see RCW 39.80.050). The City will negotiate a contract with the
most qualified firm at a price that the City determines is fair and reasonable.
In making its determination, the City shall consider the estimated value of
the services to be rendered, as well as the scope, complexity, and
professional nature of the project. If the City is unable to negotiate a
satisfactory contract with the selected firm for a price the City determines to
be fair and reasonable, negotiations shall be terminated, and the City shall
begin negotiations with the next highest qualified firm. There are two ways
to select an A&E firm based upon their qualifications:
1. Roster statement of qualifications (SOQ) review — Select three or
more consultants from the MRSC Consultant Roster in the relevant
service category and evaluate their qualifications. Documentation of
the three reviews is required. Minority -owned, women -owned, and
veteran -owned firms must be given the maximum practicable
opportunity to compete for these contracts.
2. Project -specific request for proposals (RFP) — Use the MRSC
Consultant Roster to send out an RFP and request for qualifications
(RFQ) to consultants in the relevant service category. Minority -
owned, women -owned, and veteran -owned firms must be given the
maximum practicable opportunity to compete for these contracts.
Contract Award Process:
1. Develop scope of work
2. Determine budget amount for work
3. If grant funds are involved, check the grant agreement requirements
4. Public advance notice of need for services, if not already done
5. Obtain proposals or conduct formal solicitation, as described above
6. Evaluate proposals and/or statements of qualifications and select the
most highly qualified firm
7. Negotiate final project scope and fees with selected firm
23
8. If project total is over City Manager signing authority, contact City Clerk
to add contract approval to upcoming City Council agenda
9. After Council approval (if applicable), request that Legal Assistant draft
professional services agreement
10. Obtain consultant's signature on agreement, along with proof of
insurance, professional certification (if applicable), and W-9
11. Send documents to Legal Assistant for City signatures and processing
Approval Limits:
Refer to the matrix at the beginning of this manual.
2.13 RFPs and RFQs
wz#=rom.,,.
A Request for Proposals (RFP) is a method of soliciting competitive proposals
for a defined scope of work. The proposals would normally include factors
to measure qualifications, delivery, and service reputation, as well as price.
An RFP is a formal invitation from the City to a company to submit an offer
to provide a solution (or proposal) to a problem or need that the City has
identified. The supplier's experience, qualifications, and solution may take
precedence over the cost proposal to the City.
Elements of an RFP:
1. Purpose of RFP (brief description of project)
2. Project background
3. Scope of work or statement of need
4. Goals and objectives
5. Minimum qualifications
6. Technical requirements (if any)
7. Schedule
8. Estimated project budget & request for cost proposal
9. Submittal requirements, including deadline
10. Evaluation process and criteria
11. Insurance requirements
12. Funding sources (if applicable)
Evaluation criteria for the submitted proposals should relate to the project's
scope of work and stated objectives and should be clearly communicated
with the proposers.
A Request for Qualifications (RFQ) is a method of soliciting competitive
proposals that considers and evaluates companies on the basis of
demonstrated competency and qualification rather than price. This process
al
is typically used for architectural and engineering services where price is not
a consideration. An RFQ will generally result in negotiations.
Elements of an RFQ:
1. Project background and scope of services
2. Project budget and source of funding
3. Schedule
4. Minimum qualifications
5. Submittal requirements, including deadline
6. Selection process/evaluation criteria.
Information request of the respondents may include list of principals,
previous projects, number of employees, and licenses or certifications.
Depending upon the complexity of the project, a typical RFP or RFQ takes
around 6-8 weeks to complete.
Process for RFPs or RF s:
1,
Identify need
Develop scope of services
......�
2.
..... .........
Determinethe estimated cost
....................._..... ............. ..,........
Confirm sufficient budget exists and
identify funding source(s)
3�
Identify grants or federal funds
Notify Finance Dept. (Accountant)
.....
4.
Develop draft RFP/RFQ
..._... _ ...
Considerations:
• Schedule
• Scope of services
• Qualifications
• Selection process & evaluation criteria
• Submittal requirements & deadline
• Proposal validity period
• Term of contract
Finalize RFP RFQ
Contact City Attorney for review, then
..........
_ ............. ..
..Identify
finalize RFP/RFQ
................�........
6.
a ppro priate roster
.. .....- aw ..........._.....
Identify roster category and companies
category
Advertise, publish, and notify
• Advertise
• Publish RFP on City's website
• Email notification to recommended
roster participants
8.Evaluate
proposals.. µ..,...�....._.....
._... ........... .....
to identify selection
committee
9........
Conduct interviews
Department to schedule _.._._.�.....
Identify "apparently successful
Seek management approval to negotiate
proposer"
with "apparently successful proposer"
25
11. Negotiate contract Goal: reach a mutually advantageous
position on issues of concern while
fulfilling requirements of contract
12. Award contract Prepare council agenda materials, if
applicable, and contact Engineering or
Legal Assistant for draft contract when
aoaroved
Bid Due Dates
Time is of the essence. It is important to make the bid submittal deadline
clear in the bid documents. For example: "The bid form will be received up
to 3:00 p.m. on April 27, 2020. Bids received after that date and hour, based
on the time on our atomic clock, will not receive consideration." For
example, if a bid is due at 2:00 P.M., a bid received at:
• 1:59 p.m. is on time
• 2:00 p.m. is on time
• 2:00:01 p.m. is late
If a bidder insists on submitting a bid after the deadline and leaves it, do not
open it. Make a photocopy of the bid envelope with the time stamp and
immediately return the bid by certified mail, return receipt requested.
%Lal Tratment of Bidden
Avoid giving bidders an advantage to include: permitting bidders use of
private offices and conference space for finalizing bid prices, providing
envelopes for bidders to use in sealing the bid, or permitting bidders to use
the agency's telephone, computer, fax, or photocopier. Avoid disclosing the
names of bidders or the total number of bidders until the bid opening.
Rggei in Bids hecl list
• Is the bid in writing? Do not accept bids by fax, email, telephone or
orally unless the bid solicitation allows for it (generally not allowed
for formal, competitive bidding).
• Did the bidder attend the mandatory pre -bid meeting, if applicable?
• Is the bid envelope sealed? Offer tape if not sealed.
• Is the correct information on the envelope?
• Is the time stamp clear?
• Is the time stamp prior to deadline?
• All received bids should be kept in a secure and centralized location
not accessible to other bidders.
26
Withdrawal & Modification of Bids
• A request to withdraw or modify the bid in advance of the deadline
may be received verbally or in writing. If unfamiliar with the bidder,
ask for identification.
• Make a photocopy of the face of the bid envelope, ensuring the bid
receipt time shows up on the copy.
• Have the bidder sign the photocopy with the following "Received by
(signature, printed name, date, time)."
• Keep the original signed photocopy.
• Remove the bid receipt stamp or cross it out on the face of the bid
envelope.
• Return the bid to the bidder, notifying the bidder that if they choose
to resubmit the bid, it must be received prior to the bid submittal
deadline and stamped in again with a new time and date stamp prior
to the deadline.
Modh:inz Bids from a Distance
The bidder may submit additional information modifying a previously
submitted bid if the modification is:
• Received in writing.
• Signed by an authorized representative of the bidder.
• Received prior to the bid receipt deadline.
• In a sealed envelope.
• Clear in stating what prices are being changed.
Subcontractor's List
Due either with the bid or within one hour of the bid submittal deadline
(RCW 39.30.060).
q enin the ids
Bids should be opened in a public meeting. Read each bid before opening
the next one. Consider using one person to open the bids and a second
person to read. The project manager staff should record the prices on a bid
tabulation form. The bid reader should state publicly all the information
noted in looking at the bid, without passing judgment whether it is
responsive or non -responsive, to include:
• Name of bidder
• Is bid form signed?
• Bid amount
• Is bid guaranty included?
• Are addenda acknowledged?
• Is subcontractor's list included?
27
The bids will be evaluated for responsiveness after the bid opening. If a
contractor wishes to review the bids after the bid opening, allow only one
contractor at a time to review the bids in a monitored environment.
2.15 No Bids or Non-Responsive/Responsible Bids or
Submittals
No Bids or Submittals Received:
As provided in RCW 35.23.352(1), in the event the City does not receive any
bids or submittals on the first call, the City has three options: (1) re -advertise
and make a second call, (2) enter into a contract with any qualified
contractor, or (3) purchase the supplies, materials, or equipment and
perform such work and improvement by day labor (City staff).
Before determining which option would best fit, the department should
conduct a survey of the registered bidders or proposers or any other known
interested parties to determine: 1) why they didn't they submit, 2) whether
the City's document too restrictive or too complex, 3) if there ample time to
submit, and 4) if there too many open questions before the due date. The
City Attorney may be consulted for additional assistance in determining the
best option.
Determinin Lowest Res rnsikale Bidder:
The City should award the contract for a public works project to the lowest
responsible bidder, unless the lowest bid is above the budget for the project.
In that case, all bids may be rejected, and the City may call for new bids.
A responsible bidder shall be a registered and/or licensed contractor who
meets the mandatory bidder responsibility criteria established by RCW
39.04.350 and who meets any supplementary criteria established by the
City.
According to RCW 35.23.352(2), the City may award a contract to the second
lowest bidder if: (1) the bid is within five percent of the lowest bid, (2) the
second lowest bidder meets the same criteria as the lowest bidder, AND (3)
the City has issued a written finding to the lowest bidder within the last three
years that the lowest bidder was late, over budget, or did not meet
specifications, and the City has not found in writing that the lowest bidder
has shown how they would improve performance.
Non -Res onsive and or Not -Res onsible:
The City shall draft bidder responsibility criteria that are based upon clear
business reasons, and the criteria must not be overly restrictive of the
bidding pool. Note that in Washington State, a bidder who objects to the
28
supplemental bidder responsibility criteria may request that the City modify
the criteria before the bid submittal deadline.
Bids may be rejected as non -responsive for a multiple of material factors,
including lack of subcontractor's list when required (for contracts in excess
of $1M or contracts of three or more trades), insufficient bid guarantees,
bids submitted after the deadline, qualified bids, and/or lack of
acknowledgement of addenda. In general, a material irregularity is required
before the bid may be deemed non -responsive (defined as any variance
which provides "a bidder substantial advantage or benefit not enjoyed by
others"). In the event the City receives a bid or submittal on the first call
that is deemed non -responsive or non -responsible, the department shall
consult with the City Attorney to determine whether it is a material or
immaterial irregularity. Each project will be evaluated on a case -by -case
basis.
Bid Protest:
The City follows the bid protest guidelines established in RCW 39.04.105.
2.16 Contracting 101
A contract is a written agreement between two or more people or entities
to accomplish a specific outcome. In a public purchasing context, a contract
is an agreement by a vendor or contractor to provide goods or services to
the City in return for receiving payment from the City. The following is an
overview of the contract process:
Invitation:
• A solicitation (ITB, ITO, or RFP) is an invitation to a contractor to make
an offer.
• These are most often directed at multiple parties and outline the
needs of the City.
Offer:
• The contractor's returned quote/bid/proposal is their offer to the
City to perform the work, outlining what and how much.
• The offer shows that the contractor is willing to agree to specific
terms.
• The offer is given to a particular party.
• The contractor has made an offer to do what the City requested for
a specific price.
Acceptance:
• The City must now accept one of the offers.
29
• The acceptance is a communication showing agreement to the exact
terms of the offer or a contract.
• Contracts must show that the offer made by the contractor has been
accepted, usually by attaching the contractor's estimate or scope of
work and fee schedule.
30
3.1 Rule 171— Sales Tax Exemptions
Normally sales tax applies to every sale of tangible personal property (and
some services) to all persons, including cities. Thus, for bid limit purposes,
the tax must be included when determining the cost of a public work or
when calculating the cost of materials, supplies, and equipment purchases
separately from a public work.
However, there are some sales and use tax exemptions for certain public
work projects. The exemptions include:
1. Labor and services rendered for the building, repairing, or improving
of any street, place, road, highway, easement, right-of-way, mass
public transportation terminal or parking facility, bridge, tunnel, or
trestle owned by a city or town which is used primarily for pedestrian
or vehicle traffic ( RCW 82.04.050(10). See also WAC 458-20-171,
nicknamed "Rule 171.") Materials used in constructing these
projects are not exempt from the sales and use tax.
2. Labor and services for the processing and handling of sand, gravel,
and rock taken from City pits and quarries when the material is for
publicly -owned road projects ( RCW 82.08.0275 and WAC 458-20-
171 ).
3.2 Prevailing Wages
What are m ailin wa es The Department of Labor and Industries (L&I)
requires that workers be paid prevailing wages when employed on all public
works, public building service maintenance, and contracted maintenance,
based upon the classification of labor performed.
Prevailing wages are defined as the hourly wage, usual benefits, and
overtime paid in the largest city in each county, to the majority of workers,
laborers, and mechanics. Prevailing wages are established by the
Department of Labor and Industries for each trade and occupation
31
employed in the performance of public work. They are established
separately for each county and are reflective of local wage conditions.
What are the res onslblities of the Ci when contractin for ublic works?
The City, in awarding a contract, must make the determination of whether
that contract involves "public work" and communicate it to contractors in
the bid specifications and contracts.
What rovlsions must be made for revailin wa e? Awarding agencies
must stipulate in bid specifications and contracts for public work that
workers shall receive the prevailing rate of wage. Those documents must
either contain a list of the applicable prevailing wage rates or a link to the
rates on L&I's website. If including a link, print the current rates and keep
with the project file.
What are the ublic buildmn service maintenance contract re uirements?
Public building service maintenance {janitorial} contracts of more than one-
year duration must include wage language recognizing the potential for
future variance in applicable prevailing wages each year after the first year
of the contract.
What are awardin a en re ulrements when disbursin ublc funds?
Agencies may not make any payments where contractors have not
submitted an Intent to Pay Prevailing Wage form that has been approved by
L&I. Agencies may not release final payment until all contractors have
submitted an Affidavit of Wages Paid form that has been certified by L&I.
The requirement to submit these forms should also be stated in the contract.
What are the contractors fl[in re uirement;s? Public work contracts
require that each and every contractor and subcontractor on the project file
the "Statement of Intent to Pay Prevailing Wages" and "Affidavit of Wage
Paid" forms.
is there a minimum contract amount for a contractor to file? There is no
minimum dollar contract amount. Intent and Affidavit forms are required
for every public works contract regardless of the size of the contract.
When does the contractor file an Intent? The Intent form is filed
immediately after the contract is awarded and before work begins, if that is
possible.
When does the contractor file an Affidavit? The Affidavit form is not filed
until after all the work is complete.
32
3.3 Retainage
What is the ur % of retai�na The City retains a portion of the contract
amount for public works contracts as a trust fund to pay any claims
associated with the contract and/or for payment of amounts due by the
contractor to the Department of Labor and Industries, the Employment
Security Department, and the Department of Revenue (RCW 60.28.011).
What level of retains a %s r uq it d The City generally retains 5% of the
contract amount. However, for contracts awarded by the small works roster
process and totaling less than $150,000, contractors may opt to have 10%
retained in lieu of a obtaining a performance bond. The City may
alternatively choose to waive retainage requirements for any small works
roster contracts. Retainage is not held for projects funded by federal
transportation funds.
What are the retsina e o Lions? The City retains the funds in a City fund,
unless otherwise requested by the contractor. A contractor may choose to
have the funds deposited by the City into an interest -bearing account or
placed by the City in escrow with a bank or trust company. If the escrow
option is selected, contact the City Attorney for an escrow agreement.
When can retains a btreleased? Retained funds will be released after final
acceptance of the project and after the City has received all releases from
the De artment of Revenue, the De artment of Labor and Industries and
the Em to ment Securit De rtmnt. Upon receipt of all releases, the
project manager should notify the Legal Assistant to release the funds. For
projects under $35,000, the retained funds will be released when the
Department of Labor and Industries has approved the contractor's Affidavit
of Wages Paid.
Is the Cit liable fbr a rrtent of ro'e t costs to subcontractors if wsivin
retainage? Local governments may waive retainage but must assume
liability of the contractor's non-payment. The Local government does retain
the right to recovery from the contractor.
33
4.1 Risk Management Considerations
The City enters into numerous contracts throughout the year. These
contracts involve risk. City property can be damaged. Employees of the City,
contractors, subcontractors, and suppliers can be injured. Members of the
public can be harmed. These and other accidental losses can arise during
and as a result of the activities during the contract fulfillment process. The
City seeks to transfer responsibility to such events to those with whom it
contracts.
The City's approach to contracting is designed and managed to avoid undue
exposure to risk with exceptions where it makes good business sense.
Certificates of insurance and endorsements naming the City as an additional
insured are required from all contractors and consultants who contract with
the City. Verification of appropriate insurance requirements shall be
completed prior to signing of the contract by the City. Any waiver of
insurance requirements requires the approval of the person with signing
authority for the contract (generally the City Manager). Contact the City
Attorney with questions about insurance requirements or for advice on the
risk of a requested waiver.
4.2 Payment Options
Prior to contract award, payment terms should be identified to determine
the most effective compensation method. The most common include:
ogrl Time anMaterials.
The City pays a fixed hourly rate and pays for the cost of certain specific
services and/or materials. For certain professions, such as consultants, this
is the standard option. Time and materials contracts should have a ceiling
amount or a not to exceed amount included. This type of payment term may
be used if the City is unable to clearly define the level of effort required to
accomplish the objectives. A time and materials contract places most of the
risk on the City and little on the contractor and provides no positive profit
incentive to the contractor for cost control or labor efficiency. Frequent
contract monitoring is required to ensure that the number of hours is kept
to a reasonable level.
34
M
The contractor receives a fixed amount or lump sum payment based on
terms established in the contract. Typically, payment is tied to a completion
of agreed upon performance achievements. Other alternatives are possible,
such as progress payments made to compensate for activities conducted
over the specific period of the contract. This type of contract should
generally establish a minimum allowable level of compensation. With this
method of compensation, the City may not be required to pay if specific
terms in the contract are not met and thus the risk is placed on the
contractor.
A cost reimbursement method of compensation has a higher risk for the City
because it reimburses the contractor for all costs incurred under the terms
of the contract. To prevent overpayment, allowable cost provisions should
be clearly identified. Contract managers should consider including a contract
provision for a maximum allowable compensation level for the contract
period and budget. Cost reimbursement contracts generally require more
fiscal pre -planning and monitoring than other methods.
Performance Based:
These contracts are based on attainment of a specific outcome. The rate of
compensation is generally negotiated based on cost information provided
by the contractor. Generally, performance -based contracts identify the
maximum allowable compensation. This allows the Cityto define the quality
of services in terms of performance standard and pay accordingly.
Performance based contracts differ from time and materials or fixed price
contracts in that if the quantifiable quality of service is low, the payment may
be reduced or withheld. This requires a higher level of reporting from the
contractor to the City. The contractor primarily assumes the risk because the
City does not pay if performance levels are not met.
4.3 Contract Execution & Administration
Contract Execution:
The contract is fully executed when all authorized parties have signed it.
Upon execution, signed copies of the contract should be provided to all
interested parties including, at a minimum, the contractor and Legal
Assistant.
Contract Administration:
Contract administration means any activity related to contracting, including
the decision to contract, contractor screening, contractor selection, contract
35
preparation, contract monitoring, auditing and post contract follow up.
Typical responsibilities of the project manager include:
• Understanding the contract, including the specific contract obligations
and performance indicators by which performance will be monitored.
• Assessing the risks related to the project before soliciting proposals and
contracting to determine the extent of the monitoring required.
• Ensuring the contractor has a clear understanding of how the contract
will be managed and monitored.
• Providing the contractor with guidance and technical assistance, as
needed, to promote effective contract performance.
• Identifying the extent and source of funding for services provided.
• Monitoring the contractor's activities to ensure quality service delivery.
Ensuring funding is used only for authorized purposes.
• Reviewing invoices and verifying that delivery of services is rendered.
• Resolving issues or problems that arise during the contract.
• Measuring and tracking satisfaction with contractor performance.
• Complying with State and City rules and regulations.
• Documenting the contract to validate that effective contract
management has occurred.
• Instructing the contractor to begin work before the contract is executed
and approved.
• Changing the description, scope, period of performance, or cost of the
contract without processing a written amendment.
• Directing the contractor to do work that is not specifically described in
the contract.
• Signing a contractor's contract form (some exceptions apply)
• Authorizing payment to the contractor for any work not performed
satisfactorily.
• Paying for the same or similar services more than once.
4.4 Contract Monitoring - Perliormance
Monitorin Contract Performance:
Monitoring means any planned, ongoing, or periodic activity that measures
and ensures contractor compliance with the terms, conditions, and
requirements of a contract. The level of monitoring should be based on a risk
assessment of the contractor's role in delivering the services and the
contractor's ability to deliver under the terms of the contract.
36
• 4V ». . • . 3RI=MWM .,iim •
• Complying with the terms and conditions of the contract and applicable
laws and regulations.
• In compliance with the contract through identifying and resolving
potential problems and providing constructive, timely feedback.
• Adhering to the project schedule and making appropriate progress
toward the expected results and outcomes.
• Providing the quality of service expected.
Monitorin Activities INIa IncNu
• Periodic contractor reporting — Require the contractor to submit
progress reports or other appropriate data or reports, based on pre-
defined criteria, and review the contractor's reports for verification of
services provided and adherence to the contract. Substandard
performance should be identified and addressed timely and
appropriately.
• Invoice review — Compare billings with the terms agreed upon in the
contract. Ensure the costs being charged are within the contract
parameters.
• Other periodic contact with contractor — On -site visits to maintain
contact with the contractor to review progress on a regular basis. Good
contract monitoring includes a continuous dialogue with the contractor.
4.5 Contract Monitoring - Payment
Reviewing Invoices far P rnent:
Contract payment is the process by which the contractor submits invoices
for reimbursement for services and receives payments. The contract
manager must carefully review the contractor's request for payment to
verify the accuracy of all charges.
Considerations:
• Are the hours/costs commensurate with the services or deliverables
received?
• Is the service period identified on the invoice and were the services
rendered prior to contract expiration?
• Do the rates invoiced match the rates stated in the contract?
• Has the necessary documentation been included to verify charges
accurately? Is there enough money remaining on the contract?
• Reimbursable expenses. Below are the recommended reimbursable
expenses:
o Travel
o Mileage
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o Food
o Miscellaneous expenses
If charges are acceptable, the contract manager submits a claim approval
form for payment. Payment terms are 30 days from date of invoice.
4.6 Amendments & Change Orders
Amendments:
Amendments are changes to service contracts.
Changes to contracts may be processed as amendments, rather than new
contracts, but only if the changes are within the general scope of the original
contract.
Ch n a Girders.
A change order is the formal document that alters some condition of the
contract documents. The change order may alter the contract price,
schedule of payments, completion date, terms and conditions, or the plans
and specifications. Change orders are changes to public works contracts and
reflect unforeseen conditions that must be addressed to meet the contract
requirements and without which the work requested in the original contract
could not be completed. Minor modifications that do not materially affect
the scope or cost of the contract, such as address changes or staff changes,
do not require a formal change order but should be documented in writing.
These situations should be distinguished from extra work that could stand
on its own and is outside and independent of the contract, in which case a
new competitive bid process is required. Appropriate uses of change orders
include:
Scope — Scope changes may include adding, modifying, or deleting tasks,
services, or deliverables or revising specifications. Changes to scope should
be well documented and include any additional costs associated with these
changes.
Changes that are outside the general scope of the contract or bid request
are not appropriate to award through contract change orders. Such changes
would have the effect of making the work performed substantially different
from the work defined at the time the original contract was awarded.
Terms and Conditions —Changed conditions could include price variations in
commodities.
Cost — If the cost of the contract is increased or decreased, document
reasons for change (e.g.: scope changes, changes to unit price items).
Period of Performance — An extension to the contract end date is the most
common change to the period of performance. Minor modifications that do
38
not materially affect the scope or cost of the contract, such as address
changes or staff changes do not require a formal change order but should be
documented in writing.
Amendment and Chan a C+rder royal:
• Amendments and change orders that do not change the total value of
the agreement contract (i.e.: a new expiration date) may be signed by
the City Manager or designee.
• Accumulated cost changes up to 10% of the original agreement or
contract amount may be approved by the City Manager or designee, if
there is budget capacity and available revenues.
• Accumulated cost changes greater than 10% of the original agreement
or contract amount must be approved bythe City Council. Such approval
establishes a new agreement or contract amount against which the
above percentages apply for subsequent amendments or change orders.
• The City Council may pass a resolution on an individual project giving the
City Manager the authority to sign all amendments and change orders
within the allotted project budget, superseding the 10% limit.
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4.7 Contract Close -Out & Termination
Contract Termination.
Contracts may be terminated prior to the completion date of the contract
either for convenience of the parties or for cause. Contact the City Attorney's
Office for guidance when considering a contract termination.
Contract termination should be done in writing and follow the process
described in the contract or as advised by the City Attorney.
Contract Close -Out Process:
Once the contract is complete, it is critical that the project manager
complete the close-out process in a timely manner and stay on a schedule.
1) Notice of Completion of Public Works Contract. Required for
projects totaling $35,000 or more. The project manager should
complete and file a "Notice of Completion of a Public Works
Contract" form with the C artment of Revenue, Department of
Labor and Industries, and MpIgyrrtent cunt De rtM-n . This
form is available on L&I's website.
39
2) Receive release letters from Employment Security Department,
Department of Revenue, and Department of Labor & Industries.
These letters will be sent either by mail or through that department's
web portal.
3) Release retainage. Once the above -mentioned letters are received,
the project manager should request that the Finance Department
release retainage by a memo or coversheet along with a copy of the
letters received.
a) Release retainage bond. If the contractor provided a bond
instead of having the City hold retainage, the project manager
should contact the bond issuer to release the bond.
b) Escrow release. If the contractor requested that the City hold
retainage in an escrow account, the project manager should
provide a written release to the bank.
Liens
Whenever a valid lien has been filed against the retainage, the City may
only release that amount of the retainage in excess of the total amount of
the valid lien claims and an amount sufficient to defray the costs and
attorney's fees of the claimants in foreclosing the liens.
Invoices Submitted after Close-O!ut process
Invoices that are submitted after contract expiration may still be paid if the
following conditions apply:
* Invoice or pay estimate clearly shows that services were preformed prior
to contract expiration.
• Sufficient funds existed prior to close-out.
Every effort should be made to process invoices in a timely manner to
eliminate delays and extra steps in payment processing.
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5.1 General Information
It is the policy of the City of Port Townsend to provide the best possible
stewardship and management of municipal assets in the best interests of the
residents of Port Townsend.
PTMC Chester 3.44 sets forth the City's processes for disposition of surplus
property and long-term leases. The information in this policy manual is
intended summarize the code requirements.
5.2 Declaring Surplus
A department head or operations manager may recommend that personal
or real property under his or her control is deemed no longer to have any
value and may desire to surplus that property.
• If the property has an estimated value under $10,000, the City
Manager may declare that it is surplus.
• All personal property with an estimated value greater than $10,000,
and any real property must be declared surplus by the City Council.
• All personal property acquired with utility funds may be transferred
to and used by a non -utility department if the property is of de
minimis monetary value. Disposition of utility assets must have an
administrative hearing by the City Manager.
Criteria for declaring surplus is based on one or more of the following:
• The City has or soon will have no practical, efficient, or appropriate
use for the property, nor will it have such a use for the property in
the near future.
• The purpose served by the property can be accomplished by use of
a better, less costly, or more efficient alternative;
• The purpose served by the property no longer exists as determined
by a change of policy evidenced by an ordinance or resolution of the
City Council;
• The property is damaged, worn out, or otherwise inoperable and the
cost of repairing the same is unwise or impractical.
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5.3 Disposition of Personal Property
Departments that determine they have surplus property should first make
these items or equipment available to other City departments when
reasonable. If the item is no longer of value to the City, staff may do the
following:
• Sell or transfer the item(s) to another government agency, subject to the
public notice and hearing requirements of RCW 39.33.020 for items with
a value in excess of $50,000.
• Auction the item(s). The originating department will be responsible for
all costs associated with this option. Finance will coordinate the auction
with the department representative.
• Sell the item through a sealed bid process.
• Trade the item(s) in for new replacement equipment.
• Send the item(s) to the State surplus program.
• Donate the item(s) to a non-profit that serves or benefits low-income
persons or persons with disabilities. (Be sure to obtain a receipt for
record retainage.)
• Dispose of the item(s) in the most cost effective, efficient manner.
A department head or designee that is responsible for the disposition of
property or assets. They should sign the "Declaring Surplus Memo" to the
City Manager. The memo should be a detailed statement of the item(s),
where the asset is located, the estimated value and the recommended
disposition procedure. Send the memo to the Finance Department to
coordinate obtaining the City Manager's or Council's approval.
Once approval has been granted to dispose of the property, the receiving
individual or organization must sign an "As-is/Where-Is" Statement and/or
Liability Waiver. The signed form must be forwarded to the Finance
Department for record retainage.
Within 24 hours of receipt, proceeds from any sale and sales tax collected
will be forwarded to the Finance Department to be deposited. Sales tax will
be remitted to the Department of Revenue on the next reporting cycle.
Prior to sale, remove all City logos or other markings identifying the item(s)
as City property from any vehicles and or equipment prior to sale.
42
5.4 Seizure Items (RCW 69.50.505)
The Port Townsend Police Department follows their Asset Forfeiture Policy
(Policy 601) in regards to the authority and procedures for the seizure,
forfeiture and liquidation of property associated with designated offenses.
5.5 Surplus of Real Property (Land)
The City Council shall make all decisions that relate to surplusage of real
property in accordance with Chapters 35.94 and 39.33 RCW and whether
property should be designated to meet affordable housing needs and
surplused or retained for that purpose. Because real property should
perform a valuable public function, the City Council should consider both
current use and any foreseeable future use when surplusing real property.
Pursuant to PTMC 3.44, affordable housing needs will be considered before
surplusing public lands.
The City Council shall hold a duly -noticed public hearing prior to disposing of
real property or designating that the property may meet affordable housing
needs and be surplused or retained for that purpose. All procedural
guidelines shall be followed in accordance with the code.
6.1 Purchasing Cards as a Method of Payment
In accordance with RCW 43.09.2855, local governments are authorized to
use credit cards or procurement cards for official government purchases and
acquisitions.
The City of Port Townsend's purchasing card program has been established
to provide a convenient, efficient means to purchase commodities and
services from vendors and reduce the costs associated with a purchasing
process. The City has obtained purchasing card participation in the
statewide contract with US Bank as administered by the Washington State
Department of Enterprise Services (DES). A benefit of using the contract is
that it allows the City to earn a quarterly rebate based on the volume spent
and timely payment.
43
The program is designed to empower employees to purchase items needed
for operational City business. It is a method used to pay for purchases and
is not meant to circumvent the purchasing policies or bidding procedures.
6.2 Purchasing Card Administration
Purchasing cards (p-cards) are administered by the Finance Department.
The purchasing card program administrator maintains the accounts and is
authorized to make necessary changes and updates, corresponds with the
bank to resolve issues, orders p-cards, reconciles purchases made during the
billing cycle to the bank statement, verifies accuracy of supporting
documents and signatures, maintains records, and assures timely payment.
All purchasing cards will have the "City of Port Townsend" embossed on the
card with the cardholder's name. It is not permitted to allow anyone other
than the cardholder to use a card to make purchases.
Approval to participate in the purchasing card program will be determined
by the applicable department head. It is recommended that employees
complete their initial probationary period before being eligible to have a
purchasing card issued to them. (Exceptions to this may be made with
authorization from the Finance Director or Finance Manager). Prior to
releasing the purchasing card to the employee, the cardholder will:
1. Attend training to cover the City's purchasing policies and
procedures.
2. Attend training to cover p-card procedures for US Bank Online
purchasing card transaction management.
3. Acknowledge they have received, read and understood the City's
Purchasing Policy and Procedures Manual by signing a Cardholder's
Agreement Form.
Department heads or their designees will ensure employees approve their
charges and submit the proper supporting documentation, assign correct
fund and account numbers (BARS Codes) and descriptive information for
each charge, approve the charges online, print activity statements, and
submit paperwork to the program administrator in Finance within five days
of the billin c cle close date. Failure to comply with these policies and
procedures may result in suspension of an employee's privilege of using a
City issued purchasing card. Improper use of the p-card may result in
disciplinary action up to and including termination of employment.
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6.3 Authorized Charges and Uses
As authorized, employees will use their p-cards at time of purchase for
operational materials, supplies, small equipment, postage, subscription
services, professional memberships, ordinary maintenance, services, CDL
physicals, and authorized business travel expenditures. (Please see the City's
Guidelines for Employee Travel for detail on authorized travel expenditures).
Purchasing cards may be used at any vendor that accepts VISA credit.
When making a purchase:
• The cardholder must obtain a vendor's register receipt or invoice
(Proof of Purchase). Packing slips and statements are not substitutes
for receipts or invoices.
• Register receipts and invoices should include transaction detail such
as date of purchase, a description of each item, tax, shipping, and
total. If the vendor does not issue a detailed receipt, it is the
employee's responsibility to write a description of the purchase(s)
on the receipt.
• If a receipt is lost or the cardholder is unable to obtain a receipt, a
"Declaration of Lost Invoice" Form must accompany the reconciled
statement in place of the receipt. Employees who routinely do not
submit actual invoices/receipt may have their purchasing card
benefits suspended.
• Follow the purchasing requirements outlined in the Purchasing
Policies and Procedures Manual.
6.4 Unauthorized Purchases
Cardholders must comply with the State bidding and purchasing laws and
the City's Purchasing Policies when using a purchasing card.
Examples of unauthorized uses and purchasing include:
• Personal purchases of any kind
• Cash advances through ATMs or banks
• Cash refunds for returned items
• Items restricted by City policy or State law, such as alcohol, tobacco,
and entertainment
• Any items from vendors restricted by the Finance Department, a
department head, or the City Manager
Examples of inappropriate uses:
45
• Any purchase in which the purchasing card is used to circumvent City
or State polices, bid limits, or a cardholders personal purchasing
limit.
• Any purchase made on a cardholders account by someone other
than the cardholder.
6.5 Rectums and Exchanges
Cardholders are responsible for contacting the vendor when supplies,
equipment, and services purchased with the p-card are not acceptable
(incorrect, damaged, defective, not received) and for arranging a return for
credit or exchange.
• If items are returned for credit, the cardholder is responsible for
obtaining a credit receipt from the vendor to include in the monthly
purchasing card reconciliation.
• If items need to be exchanged, the cardholder is responsible for
returning the items to the vendor and obtaining a replacement as
soon as possible.
• If items are disputed, the cardholder is responsible for resolving any
disputes directly with the vendor. If resolution is not possible,
contact the Program Administrator.
6.6 Account Maintenance
Online account maintenance:
US Bank Online account maintenance is the responsibility of the cardholder.
If an employee is locked out of their account, they should contact US Bank
directly. The customer support number is listed on the back of the
purchasing card. Please see the US bank Purchasing Card Instruction
Guidelines for online account maintenance or call the purchasing card
administrator in the Finance Department.
Name changes:
Changes to a cardholder's name should be reported to the program
administrator. A new card will be issued in the employee's name. The
cardholder should surrender the old p-card to his or her department head or
to the program administrator.
Lost or stolen card or fraud detection:
Cardholders are responsible for their own card security. In the event the
cardholder loses their card, suspects fraudulent activity on the card, or the
card is stolen, they should contact US Bank immediately. In addition, the
cardholder should contact the program administrator.
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Termination of employment or revocation of purchasing card privilege:
Cardholders must turn in their purchasing card to their department head,
Human Resources, or the program administrator in the event theyterminate
their employment with the City, or they have had their purchasing card
privileges revoked.
Spending Limits:
Spending limits will be requested by the applicable department head and
approved by the Finance Department. In general, authorized spending limits
will be established as follows (single transaction limit/monthly cycle limit):
• $5,000/$5,000 — department heads and purchasing card program
administrator
• $2,500/$5,000 — department managers, supervisors, department
purchasing designees
• $1,000/$2,500 — maintenance and operator staff
• $500/$1,500 — others as assigned.
Exceptions to these general guidelines will be reviewed at the request of the
applicable department head.
47
A&E: Architectural and engineering services; includes land surveyors and landscape architects.
Appropriation: City Council authorization to expend funds for a specific purpose.
Bid: A written proposal submitted by a vendor or contractor to furnish supplies, materials, equipment, or
services in conformity with the City's specifications included in a request for bids by the City.
Bidding: Procedure used to solicit quotations on price from various prospective providers of supplies,
materials, equipment, or services.
Bid Evaluation: A review of bids/proposals received as a result of a competitive process to determine
bidders' responsibility, responsiveness to requirements, and to determine the successful bidder(s).
Bid Opening: The official process in which sealed bids are opened, usually in the presence of one or more
witnesses, at the time and place specified in the invitation for bid. Each bid is logged, and bids are made
available for public inspection only after award of the contract. The bid opening must be open to the public.
Bid Deposit (also called a bid bond): A deposit in the form of a cashier's check, postal money order, or
surety bond equal to 5% of the amount of the bid. Required for all formally bid public works projects.
Bid Splitting: Breaking a public work project or purchase into segments. The City may not split a project or
purchase to avoid compliance with bidding statutes (RCW 35.23.352(1)).
Capital Equipment: Equipment of the City having an initial value of one thousand ($1,000) or more and an
estimated useful life of three or more years.
Change Order: An amendment to a public works contract, signed by both parties and outlining the mutually
agreed upon changes to contract time, payment amount, or scope of work, as applicable.
Contract: A legally binding and enforceable written agreement between two or more parties stating the
terms and conditions for an exchange of something of value (usually money, goods, or services) between
parties. The Legal Department should be contacted if there is uncertainty as to the need for a written
contract and how to go about it.
Contractor: Individual, company, corporation, firm, or combination, with whom the City develops a
contract for the procurement of goods and services.
Cooperative Purchasing (also called piggybacking): The action taken when two or more entities combine
their requirements to obtain advantages of volume purchases including administrative savings and other
benefits.
DES: Washington State Department of Enterprise Services.
48
Delivery Terms: Conditions in a contract relating to freight charges, place of delivery, time of delivery, or
method of transportation.
Effective Date of Contract: The date on which the contract starts.
Emergency: Unforeseen circumstances beyond the control of the agency that present a real, immediate,
and extreme threat to the proper performance of essential functions or which may reasonably be expected
to result in excessive loss or damage to property, bodily injury, or loss of life.
Emergency Purchase: A purchase in which the normal competitive purchasing procedures have been
waived by a declaration of emergency issued by the City Council or City Manager.
Encumbrance: Interchangeable with "purchase order."
Equitably distribute opportunities: Means that the local government may not favor certain contractors on
the appropriate small works roster over other contractors on the same roster who perform similar services.
Formal Competitive Bid: The process of advertising and receiving sealed written bids from prospective
vendors or contractors. The selection of the vendor or contractor is primarily based on the lowest cost
from a responsible vendor.
General Services: Interchangeable with "purchased services."
Goods and Services: Material, supplies, services, and equipment offered for purchase by a vendor or
contractor and required by an agency to accomplish continuing and necessary functions.
Informal Solicitations: Price quotes from vendors that are obtained using a variety of mediums such as
phone, fax, email, or writing. Results must be documented and submitted to the Finance Department to
obtain a purchase order (encumbrance). The selection of the vendor is based on lowest cost from a
responsible vendor.
Interlocal Agreements: The exercise of governmental powers in a joint or cooperative undertaking with
another public agency.
L&I: Washington State Department of Labor and Industries.
MRSC: Municipal Resources and Services Center. A Washington -based non-profit that provides
information and educational services to local government agencies. The City of Port Townsend uses MRSC's
vendor, consultant, and small public works rosters.
Ordinary Maintenance: Defined by WAC 296-127-010 as: " work not performed by contract and that is
performed on a regularly scheduled basis (e.g., daily, weekly, monthly, seasonally, semiannually, but not
less frequently than once per year), to service, check, or replace items that are not broken; or work not
performed by contract that is not regularly scheduled but is required to maintain the asset so that repair
does not become necessary."
49
Personal Services: Interchangeable with "professional services."
Prevailing Wage Rate: The rate of hourly wage, usual benefits, and overtime paid in the locality to the
majority of workers, laborers, or mechanics in the same trade or occupation; required to be paid on all
public works and public building service maintenance contracts. These rates are set by L&I.
Professional Services: Services that involve technical expertise provided by a consultant to accomplish a
specific study, project, task, or other work. These activities and products are mostly intellectual in nature
and do not include architectural and engineering (A&E) services. Examples of personal services include
accounting, legal, comprehensive planning, and real estate services.
Proposal: An offer to perform a contract to supply goods or services in response to a request for proposal
(RFP).
Purchase: The buying, leasing, renting or lease -purchasing of goods or services.
Purchase Order (also called encumbrance): A form issued by the Finance Department or Legal Assistant,
which reserves the purchase amount in the applicable fund and can sometimes serve as a written request
to a vendor to provide the item being purchased.
Purchased Services (also called general services): Services that are generally routine, repetitive, or
mechanical in nature and support the City's day-to-day operations. Purchased services include janitorial,
debt collections, equipment service agreements, machine repair, or delivery services.
Public Work: A project including all work, construction, alteration, repair, or improvement other than
ordinary maintenance executed at the cost of the City. Public work projects include the related materials,
supplies, and equipment to complete the project.
Purchase Order (Encumbrance): Official document used in authorizing the encumbrance of City funds
toward a purchase.
Quotation: An offer, including price, to perform a contract to supply goods and/or services in response to
a request for quotation.
Request for Proposals (RFP): A process that requests interested firms to submit a statement of their
proposal for completing a project. Proposals are evaluated based on suitability, practicality, quality of the
proposal, experience, and cost.
Request for Qualifications (RFQ): a request for only a firm's general capabilities, including a list of principals,
previous projects, number of employees, and licenses. An RFQ doesn't not including pricing information.
Requisition Form: A standard form providing detail information as to quantity, description, estimated
price, vendor, fund account, signature, and other information necessary to make a purchasing decision.
Responsible Bidder: Contractor, supplier, or vendor who is determined to be qualified to provide services
or goods to the City based on the criteria in RCW 39.04.350.
5o
Responsive Bidder: An entity whose bids conforms in all material respects to the terms and conditions, the
specifications, and other requirements of a solicitation.
Sealed Bid (Formal Bid): An advertised solicitation for a requirement in which the cost exceeds the bid limit.
The bids are opened during a public opening.
Sole Source (also called a single source purchase): An exception to competitive bidding. A purchase of
goods or services that is clearly and legitimately limited to a single source of supply in which the purchase
price may be best established by direct negotiation.
Solicitation: Notification to prospective bidders about a future project or purchase, with a request for
competitive bids, quotes, or proposals.
Splitting: The separation of continuing/repetitive requirements for the same good or service into several
purchases to avoid dollar limitations or competition.
Small Works Roster: List of contractors by work category who have registered with MRSC and requested
to be notified by the City about upcoming projects or purchases and bid opportunities.
Specification: A clear, complete, and accurate statement of the technical requirements descriptive of a
material, item, or service.
State Contract: Contracts for goods or services administered by the Department of Enterprise Services on
behalf of agencies. The contract document will identify the conditions under which usage by agencies is
allowed.
Subcontractor: A person or business that is, or will be, providing or performing an essential aspect of a
contract under the direction and responsibility of the primary contractor.
Supplier: A vendor of purchased goods and services.
Surplus Property: Personal property belonging to the City for which the City has no further use.
Vendor: A provider of materials, supplies, goods, or equipment.
51
COUNCIL COMMITTEE ASSIGNMENTS
Updated August 20, 2024
COUNCIL STANDING COMMITTEES
Infrastructure and Development (161 Wed. 3pm Virtual/Chambers)---------------------- DF, MM, NN
Culture and Society (2nd Wed. at 3pm, Virtual/Chambers)---------------------------------AH, OR, BT
Finance and Budget (3rd Wed. 3pm / Vi rtual/Ch ambers) ----------------------------------- 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--------------------------------------------------- OR
OUTSIDE BODIES WITH COUNCIL REPRESENTATIVES
North Olympic Peninsula Resource Conservation & Development Council (NODC)------------ MM
Health
Jefferson County Board of Health---------------------------------------------------------------------------MM
Jefferson County Developmental Disabilities Advisory Board---•w---------------------------------- —OR
Jefferson County Clean Water District Advisory Council-----------------------------------------------MM
Jefferson County Behavioral Health Committee---------------------------------------------------------- NN
Jefferson County Solid Waste Facilities Task Force--------••---------------W--------------------------- OR
Housing
Housing Fund Board --- ---------------------------------------------------------- NN
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
OlyCAPBoard of Directors------------------------------------------------------------------------------------ AH
Joint Growth Management Steering Committee----------------------------------------------------- DF, BT
Jefferson County FEMA funds (Dove House Advocacy Services, administrative agency) ---------
Port Townsend Main Street HUD Loan Committee------------------------------------------------------ AH
CreativeDistrict-------------------------------------------------------------------------------------------------- OR
Fort Worden Public Development Authority --------------------------- ---------.w,,_,_____-----------.-..._-__-- LW
Jefferson Broadband Action Team ------------- ---- ------------------------------------------------------ LW
Team Jefferson Economic Development Council(EDC)------------------------------- ---------------- MM
Jefferson County Fairgrounds Board-------------------------------------------------------------------------BT