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HomeMy WebLinkAbout091525 City Council Business Meeting PacketPORT TOWNSEND CITY COUNCIL AGENDA CITY HALL COUNCIL CHAMBERS, 540 WATER STREET Business Meeting 6:00 p.m. September 15, 2025 • Attend in person or virtually via computer or tablet at jj,gas.//zoom.us/�/98187633367 enter the Webinar ID 98187633367 • Phone only (muted - listen -only mode) United States: Local Dial In — 1(253)215- 8782„981876333674 • Submit public comment to be included in the meeting record to: pj.Ltlas://publicconi nn ent. fill out. cone /citya t • If you are experiencing technical difficulties, please attempt all methods listed above before reporting any issues to: clelhs.. pa ort cry o L Call to Order II. Roll Call III. Changes to the Agenda IV. Proclamation(s) or Special Presentation(s) A. Arbor Day Proclamation V. City Manager's Report VI. Comments from the Public (re consent agenda items and items not on the agenda) (Each person has 3 min. to comment- City Clerk will signal at 2 min. 30 sec.) A. Public comment B. Staff or Council response, as needed VII. Consent Agenda Action: Move to adopt the consent agenda and/or request to remove any individual item from the consent agenda. A. Approval of Bills, Claims and Warrants B. Approval of Minutes: August 11, 2025 VIIL Old Business (None) IX. New Business A. Status of Transportation Benefit District Funding and Investments along with Priority Streets Presentation Proposed Action: No action requested. Discussion only. i. Staff presentation and Council questions ii. Public Comment iii. Council deliberation and action B. Ordinance 3353 Relating to Bonds for City Officers and Employees; Adopting a New Chapter 2.09 and New Section 2.09.010, Official Bonds, in the Port Townsend Municipal Code (PTMC); and Adopting a New Section in 2.10.050 in the PTMC Proposed Action: Move to approve first reading of Ordinance 3353 Relating to bonds for city Officers and Employees; Adopting a New Chapter 2.09 and New Section 2.09.010, Of cial Bonds, in the Port Townsend Municipal Code (PTMQ; and Adopting a New Section in 2.10.050 in the PTMC i. Staff presentation and Council questions ii. Public Comment iii. Council deliberation and action C. Budget: 2026 Budget Revenue Estimates Proposed Action: No action requested. Discussion only. i. Staff presentation and Council questions ii. Public Comment iii. Council deliberation and action D. Ordinance 3354 Adopting 2025 Supplemental Budget Appropriations Proposed Action: Move to approve first reading of Ordinance 3354 Adopting 2025 Supplemental Budget Appropriations i. Staff presentation and Council questions ii. Public Comment iii. Council deliberation and action E. Resolution 25-028 Adopting Updated Comprehensive Financial Management Policy Guidelines and Repealing Resolution 21-004 Proposed Action: Move to approve Resolution 25-028 Adopting Updated Comprehensive Financial Management Policy Guidelines and Repealing Resolution 21- 004 i. Staff presentation and Council questions ii. Public Comment iii. Council deliberation and action X. Presiding Officer's Report XI. Suggestions for Future Agendas XII. Comments from Council XIII. Adjourn vy 141yof Ni li Rio lownsen PROCLAMATION WHEREAS, in 1872, the Nebraska Board of Agriculture declared that a special day be set aside for the planting of trees; and WHEREAS, this holiday, called Arbor Day, was first observed with the planting of more than a million trees in Nebraska; and Arbor Day is now observed throughout the nation and the world; and WHEREAS, the City of Port Townsend is a Tree City USA partner committed to effective urban forestry management; and WHEREAS, trees are a source of carbon mitigation. Trees buffer our carbon footprint. They store carbon on timescales relevant to climate change. We need them at least as much as they need us; and WHEREAS, trees can reduce the erosion of topsoil by wind and water, moderate the heat island effect with urban canopy, clean the air, produce oxygen, and provide habitat for wildlife; and WHEREAS, trees are a renewable resource giving us paper, wood for our homes, fuel for our hearths, and countless other wood products; and WHEREAS, the Arbor Day Foundation and Tree City USA promote the concept of 'No Net Loss', so that when trees are lost in a community, they are replaced with 'The Right Tree In The Right Place'; and WHEREAS, trees, parks, trails and open space in our city beautify our community; enhance the economic vitality of business areas, and are a source of joy and renewal; and WHEREAS, autumn is the recommended time to plant trees in our climate and the Governor has declared the month of October to be Urban and Community Forestry Month; NOW, THEREFORE, I, David J. Faber, Mayor of the City of Port Townsend, do hereby proclaim October 4, 2025 as Arbor Day and urge everyone to plant trees for urban canopy, to produce oxygen, and to promote the well-being of this and future generations. David J. Faber, Mayor I N y ea y u E u T N O d 0 d U O M M N d E r Y E o E 0 U O 'C T E `o O a 0 `o o d uj U 0 d a .3 ow m o a o U 'o a d U N w o o � Y - c T U N � O Y - 3 o - n o U U O M M N m L _ mw � L - _ n N Y a9i 0 U � om - dL- E E E w Z U U a c � O o r n 0 3 ww a o EO a E E E U E E U a' a d � d d o u E o a E E n E F 6 U 0 T lw U E ao a O m E - E o lw d o E n moc o 0 Z c M (j c N o 0 0 o ._ m a = z r 2(D o 0 PORT TOWNSEND CITY COUNCIL CONSENT AGENDA September 15, 2025 A. Approval of Bills, Claims and Warrants: • Vouchers 177543 through 177544 in the amount of $32,381.88 • Electronic Fund Transfers in the amount of $42,369.48 B. Approval of Minutes: August 11, 2025 Action: Move to adopt the consent agenda or request to remove any individual item from the consent agenda. (Short statements or easily resolved questions are appropriate without removing item from the consent agenda). CITY OF PORT TOWNSEND MINUTES OF THE CITY COUNCIL WORKSHOP MEETING OF AUGUST 11, 2025 CALL TO ORDER/ ROLL CALL The City Council met in a regular workshop meeting with Planning Commission August 11, 2025 in Council Chambers at 540 Water St, Port Townsend, WA 98368. Mayor Faber called the meeting to order at 6:OOpm. Councilmembers present at roll call were David Faber, Amy Howard, Monica MickHager, Neil Nelson, Owen Rowe, Ben Thomas, Libby Wennstrom, and City Clerk Alyssa Rodrigues. Staff members present were Public Works Director Steve King , and Assistant City Engineer Jeff Kostechka . Planning Commissioners present at roll call were Lois Stanford, Rick Jahnke, Robert Doyle, Stephen Mader, Viki Sonntag, with Andreas Andreadis, and Samantha Bair -Jones excused. GENERAL PUBLIC COMMENT (REGARDING ITEMS NOT ON THE AGENDA) James Kelly spoke about The Wall that Heals event. DISCUSSION ITEMS Comprehensive Plan Update- Transportation (Planning Commission and Council) Public Works Director Steve King and Assistant City Engineer Jeff Kostechka presented the PT Sustainable Street Plan which included Presentation Purpose, Acknowledgements, Context, Context- Crescendo of Planning, Relationship to Other Plans, Honoring Previous Goals and Policies, Past Meetings and Events, Why PT Sustainable Streets Plan?, Relationship to Land Use and Housing, Historic City Plats, Plat Integrity Compromised, Plat Integrity Sustained, Housing Opportunity - Comp. Plan Focus, Relationship of Rights of Way and Open Space Preservation, Preservation of Open Space and Trail Corridors, People Prosperity Planet Tour Guide, Street Outcomes (This), Relationship to Street Network and Fiscal Sustainability, Cost of Infrastructure and Tax Burden, Active Transportation, Emergency Access and Evacuation Route Planning, Minimizing streets and addressing redundant streets, Basis for Plan Formation -Review of How Plan was Created, PT Sustainable Streets Plan Development- GIS layers, Historic Plats Drive the Plan Development, Cappy's Excluded from Streets Plan- Preservation Area, Results, Results- Emergency Access Planning, Application of PT Sustainable Plan, Application- Predictability for realtors, sellers, buyers, builders, property owners, everyone, Allows development of streets standards, Application- Development Review, Application- Functional Plan Updates, Application- Redundant Streets, Application- Open Space and Trails Planning, Application- Role in Comprehensive Plan, Next Steps, transportation demographic survey, and Summary. In response to Council and Planning Commission's clarifying questions staff explained 776 acres, 375 acres of undeveloped open space, 14th street, locally designated as arterial, total acres of Right of Way and un-platted land, secondary access on Jackman St, bollards on secondary access, conceptual vs. actual routes, level of detail incorporated into Comprehensive Plan, emergency access dotted lines, how to handle negotiations during permit process, existing and future local access, concept future land use map, street frontage, building on short side process, property owner responsibility, abandoning streets, transportation demographic survey, goals/policies/action in transportation element, drywells, goals for public transportation and specific plans, and how public can express concerns. Jeff Kostechka provided the 2025 Active Transportation Plan which included Non - Motorized Transportation Plan, Current Stakeholder Group Members, Purpose and Goals, Active Transportation, 2011 Non -Motorized Plan Map, 2010 Non -Motorized Plan, Why Update the Plan?, Existing Conditions, Future, Future with Balanced Sustainable Streets and Active Transportation Plans, What We Plan For Matters, Sustainable Transportation, Change With Time, Community Outreach, Online Survey, Online Survey -Areas of Concern, LTS (Level of Traffic Stress), LTS (Level of Traffic Stress) -DRAFT, Infrasturcture Hierarchy, ADA Routes, Connected Routes, Shared Vision, Comprehensive Plan Changes, 2016 Comprehensive Plan, ADA and Connected Routes, SE ADA and Connected Routes, Shared Streets SB 5595, Trails, Trail Map, and Summary of 2025 Active Transportation Plan. In response to Council and Planning Commission's clarifying questions staff explained timing of September 22 open house, ADA priority routes in relation to walking, colors and lines on maps, electric bicycle mph, horse traffic, Sims Gateway Transportation Project, and agenda items. Public comment: Dylan Quarles spoke about fair housing impact fees. Jason Victor Serinus spoke about statement at end of Comprehensive Plan, appreciation for staff, 10mph transportation concern, and magical thinking. Tom Bull spoke about Lynnsfield community/housing development concerns, and regular bike speeds. Kelly Bretsky spoke about Lynnsfield community and traffic concerns. In response to public comment staff explained development process, who pays for roads during development, and impact fees. Discussion ensued around Planning Commission review and suggestions, reediting, Challenge/Opportunity review, policy section editing, maps, appreciation for staff, strategic vs. reactive, postponing public comment, parking challenges re: Park and Ride, Hwy 20 traffic and Dept of Transportation, sensibility on introduction, glossary of definitions, Capital Facilities- Library, Port Angeles airport, next Planning Commission meeting, and 2009 Transportation Functional Plan. ADJOURN There being no further business, the meeting adjourned at 9:03pm. Attest: Alyssa Rodrigues City Clerk Agenda Bill AB25-087 1° Meeting Date: September 15 2025 (fPort bb,10� Agenda Item: IX.A ® Regular Business Meeting Townsen ❑ Workshop/Study Session ❑ Special Business Meeting Submitted By: Steve King, Mike Connely, Brian Reid Date Submitted: September 12, 2025 Department: Public Works Contact Phone: 360-379-5090 SUBJECT: Presentation on the status of Transportation Benefit District Funding and Investments along with priority streets CATEGORY: BUDGET IMPACT: N/A ❑ Consent ❑ Resolution Expenditure Amount: $ ❑ Staff Report ❑ Ordinance Included in Budget? Yes ❑ No ❑ ❑ Contract Approval ❑x Other: ❑ Public Hearing (Legislative, unless otherwise noted) ❑ 3-Year Strategic Plan: 4 - Ensure sustainable future for public services and facilities Cost Allocation Fund: Choose an item, SUMMARY STATEMENT: The last couple of years have been big for City of Port Townsend Street maintenance. With a combination of grants and Transportation Benefit District Funding, street maintenance has been stepped up considerably. There is still much work to do as the community claws back from years of lack of investment. This presentation is intended to share successes, learning, financials relative to the Transportation Benefit District, and possible street priorities as part of the budget development process. Staff will be looking for Council feedback on investment priorities. ATTACHMENTS: Presentation CITY COUNCIL COMMITTEE RECOMMENDATION: N/A RECOMMENDED ACTION: No action. Feedback from this meeting will be used to help establish budgets for street preservation and repairs. 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Yes ❑ No ❑x ❑ Contract Approval ❑ Other: ❑ Public Hearing (Legislative, unless otherwise noted) ❑ 3-Year Strategic Plan: N/A Cost Allocation Fund: Choose an item, SUMMARY STATEMENT: Staff recommend that City Council approve adding new sections to the Port Townsend Municipal Code requiring official bonds for designated officers and employees, consistent with RCW 35A.12.080 and RCW 35A.13.160. State law requires that cities with a council—manager form of government provide an official bond, renewed annually, to ensure the honest and faithful performance of official duties. Faithful performance bonds help reinforce accountability and provide assurance that City officials and staff carry out their duties with integrity and care. They provide assurance that City operations are carried out faithfully and responsibly, while also offering protection in the unlikely event of errors or oversights. The bonds also extend coverage to deputies and staff, ensuring that the City's operations as a whole are supported by this added layer of accountability. Requiring these bonds is considered a good practice in municipal governance because it. • Promotes transparency and accountability in public service. • Provides financial protection for the City and taxpayers. • Strengthens public trust in how the city conducts its business. • Mitigates risk exposure by ensuring coverage for both officials and their subordinates. The City Manager will review and approve the terms and amounts of the bonds. Premiums will be paid by the city and are expected to be a modest cost compared to the level of protection provided. Adding these provisions to the Municipal Code will align the City with state requirements while giving us an important tool to safeguard public funds and ensure accountability. Staff recommends approval. ATTACHMENTS: 1. Ordinance 3353 CITY COUNCIL COMMITTEE RECOMMENDATION: N/A RECOMMENDED ACTION: Move to approve first reading of Ordinance 3353 Relating to Bonds for City Officers and Employees; Adopting a New Chapter 2.09 and New Section 2.09.010, Official Bonds, in the Port Townsend Municipal Code (PTMC); and Adopting a New Section in 2.10.050 in the PTMC ALTERNATIVES: ❑x Take No Action ❑x Refer to Committee ❑x Refer to Staff ❑x Postpone Action ❑ Remove from Consent Agenda ❑ Waive Council Rules and approve Ordinance ❑ Other: Ordinance 3353 PERFORMANCE BONDS Page I of 3 ORDINANCE NO.3353 AN ORDINANCE OF THE CITY OF PORT TOWNSEND RELATING TO BONDS FOR CITY OFFICERS AND EMPLOYEES; ADOPTING A NEW CHAPTER 2.09 AND NEW SECTION 2.09.010, OFFICIAL BONDS, IN THE PORT TOWNSEND MUNICIPAL CODE (PTMC); AND ADOPTING A NEW SECTION IN 2.10.050 IN THE PTMC. WHEREAS, Washington state law, through sections �35A.12.080 and 35A.13.160 of the Revised Code of Washington ("RCW") requires the clerk, treasurer, if any, chief of police and such other officers or employees as may be designated by ordinance or by charter to furnish annually an official bond conditioned on the honest and faithful performance of their official duties; and WHEREAS, RCW 35A.13.070 requires the city manager of a code city to execute and file with the clerk of the council a bond in favor of the city in such sum as may be fixed by the council before entering upon the duties of his or her office; and WHEREAS, the official bonds of officers of a municipality must comply with the requirements of Chapter 42.08 RCW; and WHEREAS, the premiums for bonds for appointive officers and City staff must be paid by the City per RCW 48.28.040; and WHEREAS, the State of Washington Auditors office recommends bond coverage should be provided for all employees, under a blanket bond. NOW THEREFORE, the City Council of the City of Port Townsend does ordain as follows: Section 1. A new section 2.10.050, City manager — Bond and oath, is hereby created in Port Townsend Municipal Code Chapter 2.10 (City Manager) as follows: 2.10.050 City manager —Bond and oath. Before entering upon the duties of his or her office the city manager shall take an oath or affirmation for the faithful performance of his or her duties and shall execute and file with the clerk of the council a bond in favor of the city consistent with the provisions of PTMC 2.09.010. Section 2. A new Chapter 2.09 titled "Official bonds." A new Section 2.09.010 "Official bonds," is hereby adopted in Chapter 2.09 of the PTMC titled "Official bonds" in the Port Townsend Municipal Code to read as follows: Ordinance 3353 PERFORMANCE BONDS Page 2 of 3 2.09.010 Official bonds. In accordance with RCW %5A.1 %.4)74) and %5A.1'% 1.64), the employees of the city listed in this section shall each, before entering upon the performance of their respective duties, furnish to the city an official bond conditioned upon the honest and faithful performance and discharge of their official duties, and for the proper application of all money or property received by them by virtue of their position or employment. All such official bonds shall be approved by the city manager, except that the bond of the city manager shall be approved by the city attorney. Such bonds shall run in favor of the city and be executed by a fidelity or surety company authorized to transact such business within the state. The form shall be approved by the city attorney and must meet the requirements of any proper department of the state supervising the same. The premiums on said bonds shall be paid by the city. A. The director of finance and technology services who serves as the city treasurer shall qualify by furnishing a faithful performance bond at the expense of the city in the sum of not less than $100,000. B. The city clerk and all persons authorized by the city to sign checks or warrants shall be covered by a blanket faithful performance bond in the sum of not less than $75,000. C. The city manager shall be covered by a blanket faithful performance bond in the sum of not less than $100,000.� D. The chief of police shall be covered by a blanket faithful performance bond in the sum of not less than $100,000.� E. All other city officers and employees shall be covered by a blanket faithful performance bond in the sum of not less than $50,000. All amounts provided in this section may be increased to a greater amount as may be specified by state law as hereafter amended. Section 3. Severability. If any sentence, clause or phrase of this Ordinance should be held to be invalid or unconstitutional by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of any other section, sentence, clause, or phrase or work of this Ordinance. Section 4. Effective Date. This Ordinance shall take effect and be in force five days following its publication in the manner provided by law. Ordinance 3353 PERFORMANCE BONDS Page 3 of 3 Adopted by the City Council of the City of Port Townsend, Washington, at a regular meeting thereof, held this 6th day of October, 2025. 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C) CD 0 CD co c1l) C) C) CCcx) tX) :,f C^d 0 00 q) rq 1-11 1-4 4 1-4 I EN Ln 0 r4 0 r4 "0 1 fll rel L6 ti'O a� kq m 00 m r-,) LD fz) L.r) 0 0 I Ln rN City0f Port ' m�10 Townsen Agenda Bill AB25-090 Meeting Date: Sept 15, 2025 Agenda Item: IX.D ® Regular Business Meeting ❑ Workshop/Study Session ❑ Special Business Meeting Submitted By: Jodi Adams, Director of Finance & Technology Services Date Submitted: September 10, 2025 Department: Finance Contact Phone: 360-379-4403 SUBJECT: Ordinance 3354 Adopting 2025 Supplemental Budget Appropriations iiiiiiiiiiiiiiiiiiiiiillillillillillillilliillillillilliillillillillillillilliillillillillillillilliillillillillillillilliillillillillillillillillillillilliillillillillillillilliillillillillillillilliillillillillillillillillillillilliillillillillillillilliillillillillillillilliillillillillillillillillillillilliillillillillillillilliillillillillillillilliillillillillillillillillillillilliillillillillillillilliillillillillillillilliillillillillillillillillillillilliillillillillillillilliillillillillillillilliillillillillillillillillillillilliillillillillillillilliillillillillillillilliililI CATEGORY: BUDGET IMPACT: ❑ Consent ❑ Resolution Expenditure Amount: ❑ Staff Report ❑x Ordinance Included in Budget? Yes ❑ No ❑x ❑ Contract Approval ❑ Other: ❑ Public Hearing (Legislative, unless otherwise noted) ❑ 3-Year Strategic Plan: N/A Cost Allocation Fund: N/A SUMMARY STATEMENT: Our second budget supplement for 2025 has been kept to a minimal amount, and only items that were emergency repairs or had unexpected price increases are included. There are many reasons why supplemental appropriations are needed. • Carry forward budget from 2024 for projects that were not completed • Donations that were made in previous years and not spent. • Capital Projects that are new or have carry forward money from previous years • Additional expenditures emerge as new information or activity occurs that was not previously known or available when compiling the current year's budget. • Increased costs due to supply chain issues, labor shortages and inflation factors. • Unforeseen emergencies. • Obtaining legislative authority for the proper management of funds in the general ledger. All expenses must be approved by council prior to being spent, so a budget amendment includes all unbudgeted expenditures. However, we are not required to reduce or credit unspent line items or to increase revenue during the supplement process. An increase in an expenditure line does not necessarily mean an increase in spending. There may be an offset under another line that is not reflected in the supplement process. The 2025 Budget Supplement #2 includes General Fund: Planning and Community Development received additional grant funding from Commerce for the Shoreline Master Plan in the amount of $30,034, increasing the total award amount to $92,674. The professional service budget needs to be increased to match the additional award money. You will need see the revenue line in the supplement process but this increase in expenditures is covered by the additional grant revenue. Unemployment expenses have increased in 2025 compared to the last couple years. City of Port Townsend is self -insured which means we cover unemployment costs for staff that have left the city. Instead of paying ongoing taxes into the state trust fund, we reimburse the state dollar -for -dollar for the actual unemployment benefits paid to our former employees. We need to increase the unemployment fund to cover these additional expenses. Community Services: Community Services presented to Finance & Budget Committee on July loth, and then at City Council July 21St, regarding a few unexpected repairs needed for city owned property. A couple of the items discussed are presented in the second supplement. The boilers at City Hall broke at the beginning of the summer and they are past their life expectancy and unable to be repaired further. Replacement boilers are needed for staff before the weather becomes cold. Painting the Bell Tower was proposed as part of the 2025 budget but moved to 2026 when it was identified as a lower priority than other projects. Now that we are further into 2025 and funds are available to make these repairs, we would like to move that budget item back to 2025. Both the chlorinator at the pool and playground equipment at Chetzemoka Park have unexpectedly had broken parts that need to be replaced prior to 2026. The additional expenditures for facilities will be taken from the Community Services fund balance which is higher than the required 2-3% of required fund expenditures. Public Works: Discovery Road (TIB grant shortfall): The City anticipated $2.7 million from the Transportation Improvement Board for the Discovery Road project. The grant came in lower than expected and $228,000 from the Transportation Benefit District is needed to cover the cost. Streets Operating- Catchup for Hot Spot Repairs and increase for County Chip Seal work. While Hot Spot Repairs was included in the 2025 adopted budget for the Transportation Benefit District, Street Operations Hot spot repairs were inadvertently left out of the 2025 adopted budget. Give the magnitude of work required for Discovery and Mill Road, the hot spot repair budget is recommended to be increased from $100,000 to $219,000 In addition, expenditures are increased to the county partnered chip seal work to be reimbursed by Transportation Benefit District. Close Utility Surcharge Fund / Return Residuals: With utility surcharges ending in April 2024 (Ordinance 3332), the dedicated surcharge fund is no longer needed. The remaining balance will be transferred back to Water, Sewer, and Storm funds using the most recent allocation percentages. These transfers do not create new spending; they return residual dollars to the operating utility funds. The Main Street Tax Credit Program through the state allows local businesses to support downtown revitalization projects while receiving a state tax credit in return. Port Townsend Main Street applied for and was awarded an additional $85,000 in 2025 through a Q4 Tax Credit Incentive Program (TIP). These funds will be issued to the City and subsequently passed through to Port Townsend Main Street. The $85,000 is being included in the supplemental budget under Utilities and is fully offset by the TIP funds that will be received. ATTACHMENTS: 1. Ordinance 3354 2. City of Port Townsend 2025 Supplemental #2 Detail CITY COUNCIL COMMITTEE RECOMMENDATION: At their September 8, 2025 meeting, the Finance and Budget Committee recommended forwarding the Supplemental Budget #2 request to City Council. RECOMMENDED ACTION: Move to approve the first reading of Ordinance 3354 Adopting 2025 Supplemental Budget Appropriations. ALTERNATIVES: ❑x Take No Action ❑ Refer to Committee ❑ Refer to Staff ❑x Postpone Action ❑ Remove from Consent Agenda ❑ Waive Council Rules and approve Ordinance ❑ Other: Ordinance 3354 Page 1 of 1 ORDINANCE NO. 3354 AN ORDINANCE OF THE CITY OF PORT TOWNSEND, WASHINGTON, ADOPTING 2025 SUPPLEMENTAL BUDGET APPROPRIATIONS WHEREAS, the City Council adopted a supplemental budget per Ordinance 3347 on June 2, 2025 and was set forth in the document entitled "City of Port Townsend 2025 Supplemental 41 Detail"; and WHEREAS, new or unforeseen projects were not identified at the time of compiling the 2025 budget; and WHEREAS, staff recommends appropriating funds for the new and unforeseen projects as identified for 2025; and WHEREAS, the City Council reviewed the supplemental budget on September 15, and considered the matter further on October 6, 2025; NOW, THEREFORE, the City Council of the City of Port Townsend, Washington, do ordain as follows: Section 1. The supplemental budget for the City of Port Townsend, Washington, for the fiscal year 2025, is adopted as set forth in the document entitled "City of Port Townsend 2025 Supplemental 42 Detail", making revenue and expenditure revisions. Section 2. This Ordinance shall take effect upon its passage, approval, and publication in the form and manner provided by law. ADOPTED by the City Council of the City of Port Townsend, Washington, by a vote of the majority of the City Council plus one, at a regular business meeting thereof, held this 6th day of October 2025. David J. Faber Mayor Attest. Alyssa Rodrigues City Clerk N M- N u N M o ° ,. 0 o w o N o 4�M1 _ v°Ji mc 0 o 'o E u o 3 vni - o 0 _ p o o `o_ Y Y ry co w c no o ;. ;. 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C1; a 4 nl. ti m N z o ^•�.. o a. o w Ivrryry o .tea.', 'i6 4i. 4 m µ 4 v G a in No No No No oN oo 0 4 0 o m.. o N'. 0 0 4... o o m �q o o¢ o 45 C. o. •a 45 CL a � 'a Ea a!' +1i EN 4. 4 4�5 a. 45 4 oc 'a a°� 3 m o b r E m 4. cc It O cc cm It 6 o u u 4 o c F c" o 3 0 C . a, °° m ,a+ a° �a u u° mc w aEi" w ° ° u .w w 0 n c o_ O .. 4 O O0 City0f Port ' m�10 Townsen Agenda Bill AB25-091 Meeting Date: September 15, 2025 Agenda Item: IX.E ® Regular Business Meeting ❑ Workshop/Study Session ❑ Special Business Meeting Submitted By: Jodi Adams Date Submitted: September 9, 2025 Department: Finance Contact Phone: 379-4403 iiiiiiiiiiiiiiiiiiiiiillillillillillillilliillillillillillilliillillillillilliillillillillillillilliillillillillillillilliillillillillillillillillillillilliillillillillillillilliillillillillillillilliillillillillillillillillillillilliillillillillillillilliillillillillillillilliillillillillillillillillillillilliillillillillillillilliillillillillillillilliillillillillillillillillillillilliillillillillillillilliillillillillillillilliillillillillillillillillillillilliillillillillillillilliillillillillillillilliillillillillillillillillillillilliillillillillillillilliillillillillillillilliillillillillillillillillillillilI SUBJECT: Resolution 25-028 Adopting Updated Comprehensive Financial Management Policy Guidelines and Repealing Resolution 21-004 CATEGORY: BUDGET IMPACT: n/a ❑ Consent ❑x Resolution Expenditure Amount: ❑ Staff Report ❑ Ordinance Included in Budget? Yes ❑ No ❑x ❑ Contract Approval ❑ Other: ❑ Public Hearing (Legislative, unless otherwise noted) ❑ 3-Year Strategic Plan: N/A Cost Allocation Fund: Choose an item, SUMMARY STATEMENT: Annual Update to Comprehensive Financial Management Policy Guidelines. Staff recommend that City Council adopt the proposed amendments to the Comprehensive Financial Management Policy Guidelines to update language, add a new section on vendor payments, and establish an interfund loan policy. On December 2, 2024, City Council adopted Ordinance 3343, amending the City's Comprehensive Financial Management Policy Guidelines. These guidelines provide the framework for sound financial practices, transparency, and accountability in managing public resources. The 2025 annual update includes minor revisions to modernize existing language and introduces two substantive additions: Section XVII — Vendor Payments This new section outlines best practices in accounts payable and formalizes procedures already in place within the Finance Department. The policy ensures timely, accurate, and secure vendor payments while safeguarding City resources and strengthening internal controls. 2. Appendix C — Interfund Loan Policy On March 10, 2025, the Finance and Budget Committee reviewed and recommended establishing a formal policy for interfund loans. This policy authorizes staff to bring interfund loans to city council for approval through ordinance, per state law. It also allows for the issuance of temporary interfund loans, with a term of less than 60 days. Temporary loans are a useful tool to manage cash flow when large grant -related expenditures occur prior to reimbursement. They help prevent funds from going negative, particularly at year-end when budget amendments cannot be made. By state law, temporary interfund loans may be authorized by policy but must be repaid within 60 days. Any interfund loan exceeding 60 days continues to require a resolution and Council approval. The proposed policy aligns with these statutory requirements while improving the City's ability to manage short-term cash flow needs responsibly. No significant fiscal impact is anticipated. The vendor payment policy codifies current practice, and the interfund loan policy provides flexibility for managing cash flow without requiring additional resources. The proposed updates bring the Comprehensive Financial Management Policy Guidelines current, formalize existing practices, and add important tools for effective financial management. Staff recommends approval of the ordinance adopting these amendments. ATTACHMENTS: 1. City of Port Townsend Comprehensive Financial Management Policy Guidelines 2. Resolution 25-028 CITY COUNCIL COMMITTEE RECOMMENDATION: Finance and Budget Committee recommended updating the Financial Management Policies to include an interfund loan policy at the December 2, 2024 meeting. RECOMMENDED ACTION: Move to approve Resolution 25-028 Adopting Updated Comprehensive Financial Management Policy Guidelines and Repealing Resolution 21- 004 ALTERNATIVES: ❑x Take No Action ❑x Refer to Committee ❑x Refer to Staff ❑x Postpone Action ❑ Remove from Consent Agenda ❑ Waive Council Rules and approve Ordinance ❑ Other: Comprehensive Financial Management Policy Guidelines Adopted September 15, 2025 Page I of 22 City of Port Townsend Comprehensive Financial Management Policy Guidelines Adopted September 15, 2025 Comprehensive Financial Management Policy Guidelines Adopted September 15, 2025 Page 2 of 22 Comprehensive Financial Management Policies Index I. FINANCIAL POLICY GUIDELINES........................................................................4 II. ORGANIZATION...................................................................................................4 III. ACCOUNTING, AUDITING AND FINANCIAL REPORTING ...............................5 IV. FUND STRUCUTURE & FUND RESERVE GUIDELINES..................................7 V. REVENUE POLICIES......................................................................................... 10 VI. OVERHEAD COST RECOVERY (COST ALLOCATION) .................................. 12 VII. GENERAL BUDGET POLICIES....................................................................... 13 VIII. FINANCIAL PLANNING POLICIES................................................................. 15 IX. ENTERPRISE FUNDS...................................................................................... 15 X. CAPITAL INVESTMENT PROGRAM PLAN POLICIES ..................................... 16 XI. DEBT MANAGEMENT POLICY........................................................................ 16 XII. PURCHASING POLICY.................................................................................... 18 XIII. ELECTRONIC FUNDS TRANSFER POLICY .................................................. 18 XIV. GRANTS MANAGEMENT POLICY................................................................. 18 XVk VACANCY RATE POLICY ;• 18. .... ..... .... .... ................................................................................................................................................................................................................................................................................................................. ..... .....92 0 -( Formatted: Check spelling and grammar Formatted: Normal R1ww210111]014:M 01021191kh1210112901114VA ....................................................... TIP21 .............. APPENDIX B: CITY OF PORT TOWNSEND FEDERAL AWARDS STANDARDS & CODE OF CONDUCT.........................................................................292 All:::all:::alf::.I IG:)IX. Cwm III...1..If:::::.11= If=1JI IG:) II....0AIN II:::aCIL...JCY................................................25....... ........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ Comprehensive Financial Management Policy Guidelines Adopted September 15, 2025 Page 3 of 22 Comprehensive Financial Management Policy Guidelines Adopted September 15, 2025 Page 4 of 22 I. FINANCIAL POLICY GUIDELINES e t;carm�pE .! �21 siive 1 1l�,gd�dii�ll 1Ioal i6es flr e &.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 4-2],q„v meet its immediate and long-term financial service objectives and obligations. The City of Port Townsend is accountable to its r esiicV�,m�# a 4izermFLfor the use of public funds. Municipal resources must be wisely used to ensure adequate funding for services, public facilities„, and infrastructure nee4ed 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 re s..Jd e mats, �s, �s�, including e�tiiviitiies suprogrem.2 life and property, 2s. q.g,srrpublic health and welfare, and prcamcate improved quality of life. 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 Council deems it a hill h riorit to deliver miunici al services in the manner consistent for all citizens and withp,iich,st t.�rassiilrll, effciencv and financial prudence. Comprehensive Financial Management Policy Guidelines Adopted September 15, 2025 Page 5 of 22 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 0 inancial and b udget Rhaolicy,gGuidelines.� 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 license/tax administration and utility billing operations, grant rm ;gd ,gg M!2j t, federal & state funding compliance, gd d 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: III. ACCOUNTING, AUDITING AND FINANCIAL REPORTING The City will maintain a system of financial monitoring, control,, and reporting for all operations and funds to provide effective means of ensuring that overall City goals and objectives are met. Accounting Records and Reporting — The City will maintain its accounting records in accordance with state and federal regulations. Budgeting, accounting, and reporting activities will conform to the Budgeting, Accounting,, and Reporting System (BARS) for Governments as prescribed by the Washington State Auditor. The City maintains its accounting and budgeting records on a cash basis and adheres to the cash basis BARS manual. Comprehensive Financial Management Policy Guidelines Adopted September 15, 2025 Page 6 of 22 Capital Assets ,As a cash basis entity, the City records and reports only inflows - Formatted. Font: Not Bold, No underline and outflows of cash. When a capital asset is purchased, the entire expenditure ( Formatted: No underline 1 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 an anticipated life of one year or more. Capital assets are tracked by 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 tare --purchased with grant funds may be subject to additional compliance requirements. The department obtaining the grant is responsible for understanding � ,d,�! 0..!�, [li,u ,g,;tcaany compliance requirements related to acquiring, inventorying, tracking, and disposing of assets obtained through these types of funds. Small and Attractive Assets — The Cityidentifies small and attractive assets as - Formatted: Font: Not Bold, No underline items with a cost greater than $500 but less than $7,500. These items have a life ( Formatted: Font: Not Bold, No underline 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 14at h . adopted �by Councill. 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 Comprehensive Financial Management Policy Guidelines Adopted September 15, 2025 Page 7 of 22 • 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 Director may delegate the authority to conduct investment transactions and manage the operation of the investment portfolio to one or more subordinates as outlined in the investment program operating procedures. All participants in the City's investment process shall act responsibly as custodians of the public trust. • As permitted by law and City ordinances and to maximize the effective investment of assets, all funds needed for general obligations may be pooled into one account for investment purposes. The income derived from this account will be distributed to the various funds based on their average fund balances on a periodic basis. See Appendix A for,.ulll Investment Policy. IV. FUND STRUCUTURE & FUND RESERVE GUIDELINES The City's accounting and budgeting systems are organized and operated on a fund basis. Funds are accounting entities used to record revenues and expenditures. By definition, balanced funds mean that total revenues equal total expenditures. The budgeted funds are grouped into categories: General, Special Revenue, Debt Service, Capital Projects, Enterprise, and Internal Service. The following provides a brief description of the fund types and reserve guidelines for each fund. The numbers in parentheses represent the BARS manual fund series numbering scheme. GENERAL FUND (010) -- This is the primary operating fund or current expense fund of the City. To maintain the City's credit rating and meet seasonal cash flow, the budget shall provide for an anticipated undesignated fund balance between 8% and 15% of estimated annual revenues for general government fund types. The fund balance shall be exclusive of all reserves not anticipated to be readily available for use in emergencies and contingencies. Should the fund balance fall below 8% of revenues, a plan for expenditure reductions and/or revenue increases shall be submitted by the City Manager to the Council. If, at the end of a fiscal year, the fund balance falls below 8%, then the City shall rebuild the balance within a period not to exceed three fiscal years. Comprehensive Financial Management Policy Guidelines Adopted September 15, 2025 Page 8 of 22 GENERAL FUND COUNCIL RESERVE (Included in the General Fund) — In addition to the Fund balance and the Contingency Fund, the budget for the General Fund shall provide for a "Council Reserve" equivalent to approximately 1 % of estimated operating revenues in the General Fund (010). Only the General Fund shall maintain a "Council Reserve." The Council Reserve is established to provide for non -recurring community requests or unanticipated needs deemed necessary by Council. The Council Reserve shall be suspended during times of significant economic downturn, especially during years when the General Fund ending fund balance falls below 5%. The Council Reserve is a budgeted appropriation expected to be specifically allocated at the Council's discretion. SPECIAL REVENUE FUNDS (101-1991 — 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. CONTINGENCY — Rainy -Day Fund (102) — Each fund should retain enough in its own Ending Fund Balance Reserves to offset minor non -recurring or unanticipated expenses during the budget year. Beyond those reserves, the City's Contingency — Rainy -Day Fund is intended as a strategic reserve to meet emergency conditions or to help maintain essential services during periods of economic downturn. The fund will build to between 5% - 10% of General Fund annual operating revenues (but below the requirements of RCW 35.33.145) after its creation and subsequent to its intended use. The Rainy -Day Fund will be seeded through the following: • Unrestricted one-time revenues from projects with assessed value at over $3..miilllli!c"o • Contributions from the General Fund Reserve • Contributions from the vacancy rate (see Vacancy Rate Policy) Comprehensive Financial Management Policy Guidelines Adopted September 15, 2025 Page 9 of 22 DEBT SERVICES FUND (200) — These funds are used to pay general government debt. The City shall retain or transfer in funds sufficient to cover the annual debt service obligations and retain such "coverage" amounts to comply with bond covenants or other loan restrictions. CAPITAL PROJECTS FUNDS (300) — These funds are established for the acquisition or construction of general government (non -utility) capital improvements. Ending Fund Balance Reserves should be maintained at levels sufficient to cover anticipated annual expenditures with transfers in from supporting funds (General, REET, etc.) to cover project needs. ENTERPRISE FUNDS (400) — These funds are the proprietary or "business -like" funds for operations providing services to the general public supported primarily through user's fees (Water, Sewer, Stormwater, and Utility Revenue Bond). The Ending Fund 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 Balance and operating cash flow are not adequate to fund needed utility system improvements, additional 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 cover any additional covenant requirements. INTERNAL SERVICE FUNDS (500) — These funds are also internal "business- like" funds for operations providing services to other City departments (funds) on a direct cost -reimbursement basis (e.g..,, Equipment Rental including Information Technology services and equipment 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) — These funds account for assets held by the City as a trustee or as an agent on behalf of others. Ending Fund Balances and any transfers in should be maintained consistent with fund restrictions. ENDING FUND BALANCE, RESERVES, CONTINGENCY SUMMARY The following is a summary of the reserves guidelines. Guidelines will be reviewed annually as a part of the Budget process: Comprehensive Financial Management Policy Guidelines Adopted September 15, 2025 Page 10 of 22 General Fund ................................. Library........................................... Street............................................ Community Services ........................ Other Special Revenue Funds ........... Contingency ................................... Debt Service ................................ General Capital ............................. Enterprise Funds ........................... System Development Charges Fund (Enterprise) .................................... Internal Service ............................... Fiduciary Funds .............................. 8-15% of operating revenue 5-8% of property tax 2-3% of expenditures 2-3% of expenditures Sufficient to meet obligations No less than 2% of operating revenue Sufficient to meet obligations Sufficient to meet obligations 60 days of operating expenditures Sufficient to meet obligations Sufficient to meet obligations 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. 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 Comprehensive Financial Management Policy Guidelines Adopted September 15, 2025 Page 11 of 22 County, state or federal funding will be used to finance only those capital improvements that are consistent with the capital improvement plan and local government priorities, and whose operation and maintenance costs have been included in operating budget forecasts. Enterprise Fund Revenue Policies — Enterprise 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 Charges (Non -Utility) —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 t 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 Git-y-- .Iy 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 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 Comprehensive Financial Management Policy Guidelines Adopted September 15, 2025 Page 12 of 22 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 Parksf;; p,arLrm, nL 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 the most appropriate method available for doing so. However, a cost allocation plan should be designed and used to provide a reasonable, consistent,,, and equitable means to allocate costs. Inequitable charges result in questionable charges to grant, utilities,, and restricted funds. For grant purposes, costs that benefit the public at large cannot be included and should follow the OMB A-87 and/or 2CFR Part 200 guidelines. The Council adopted a Cost Allocation Plan in Resolution 14-035 on June 25, 2014. In addition to using the overhead cost recovery model to assess the appropriate amount of overhead to utilize for establishing user fees, the model will be used to apply charges to Departments/Funds for City-wide overhead indirect Comprehensive Financial Management Policy Guidelines Adopted September 15, 2025 Page 13 of 22 cost recovery where allowed (Council, City Manager, City Clerk, City Attorney,, and Finance). The Council may authorize waiver of the overhead cost -recovery in all or part if Council determines doing so will provide a general benefit to the citizens, taxpayers, or utility rate payer. If a portion of the overhead cost -recovery is waived, the General Fund must absorb these costs; waived costs may not be absorbed by or reallocated to a Special Revenue or Enterprise Fund. VII. GENERAL BUDGET POLICIES Annual Budget— The City's annual budget will be developed in accordance with -( Formatted: Font: Not Bold, No underline ..... ........ ......... ......... ......... the policies and priorities set forth in the comprehensive plan, the City Council's strategic plan, City Council goals and priorities, the needs of the community, and federal and state laws. In general, budgeted 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 (Appropriation) Policies — Operating expenditures will be proposed at p- g-- p p p -'� Formatted: Font: Not Bold, No underline a level that will be supported by ongoing annual operating revenues. Staffing Budget — Salaryand benefit costs are the Cit 's most significant Y 9 _-- { Formatted: Font: Not Bola, No underline ---- 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 cw-(-�P.an„ e„f.o. rl_to recruit and retain high quality staff. The City Manager's proposed budget will identify staffing levels and provide justification for any increases or decreases in overall City staffing. Union Contract negotiations may impact budget expenditures annually. However, if a collective bargaining agreement is, or will be, under negotiation, a specific amount will not be included in the budget from potential wage adjustments resulting from the negotiation, other than a base COLA adjustment. This is to protect the City from any claims of not "bargaining in good faith". Funding for Comprehensive Financial Management Policy Guidelines Adopted September 15, 2025 Page 14 of 22 unknown contract terms must be considered in balancing ongoing revenues with ongoing expenses. Equipment Replacement & Maintenance — Equipment replacement and -( Formatted: Font: Not Bold, No underline ........ ..... ........ ......... ......... ......... 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 and Travel — City employees or others on official City business or training may be required to travel outside the City to conduct their business or training for the City. City employees and officials will be reimbursed for reasonable and customary expenses incurred in the conduct of their business for the City, including food, lodging,, and travel expenses while away, excluding any expenses for personal entertainment or alcoholic beverages, as provided in the City's Personnel Policies Manual for business or training travel. Such training or travel shall be as provided either specifically or generally in the annual budget. Training is an investment in maintaining the certifications and skills of the City's employees. 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 Adding Permanent Staff Since personnel -related expenditures represent the largest portion of the City's budget, funding of technology or process improvements that increase efficiency and effectiveness of the delivery of City services should receive priority funding. Budqet Monitorinq — 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. The Finance Director will monitor unanticipated needs or emergency expenditures and prepare budget amendments or supplementals in compliance with State Law. Comprehensive Financial Management Policy Guidelines Adopted September 15, 2025 Page 15 of 22 Vill. FINANCIAL PLANNING POLICIES Financial Forecast — The City will develop a 5-year Financial Plan and Forecast Model based on these financial policy guidelines and a best estimate of likely revenues and expenditures. The model will be used to test the policies against likely surrounding economic conditions. The model will be used for long-range financial planning and is not a replacement for budgeting. The City's financial planning will include the current year budget plus five additional years of projected data. The City may elect to extend its planning horizon further if conditions warrant. The long-range financial plan operating revenues and expenses will include data for the General Fund, Contingency Fund, Library Fund and Community Services Fund. In addition to ongoing revenues and expenses, this forecast will utilize assumptions that forecast general obligation debt and general fund contributions to capital projects. The long-range financial plan should present trends and projections in key financial indicators, such as: • Revenues and expenses per capita including nominal and Inflation F Formatted: Indent: Left: 0.2s" ..................................................................................................................... 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,,,,,: b comparative revenues and expenses by major type to include: Total revenues and expenses per capita. •,,,,„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 r ,pcg a ;i f standards. The long-range financial plan model for each utility will analyze rate revenues, rate structure, operating costs, replacement capital costs, debt service.,, and other utility considerations (special rate programs, paybacks, etc.). The City may utilize specialized rate consultants to evaluate the rate and cost structure of the utilities. Formatted: Normal, No bullets or numbering lFormatted Comprehensive Financial Management Policy Guidelines Adopted September 15, 2025 Page 16 of 22 X. CAPITAL INVESTMENT PROGRAM PLAN POLICIES General Policy Considerations — The major resources for funding capital -( Formatted: Underline improvement and capital maintenance programs are revenues, grants and debt. ( Formatted: Font: Not Bold Financing planned capital replacement costs are an ongoing challenge. Preparing for the challenges of infrastructure replacement or enhancements demands a long-term view of replacement needs. In order to plan for these needs the City will develop a six -year Capital Improvement Plan (CIP) for adoption by Council as required by the Washington's Growth Management Act. The CIP will be consistent with the Capital Facilities Element of the City's Comprehensive Plan. A capital project over $15,000 with a minimum of a five-year anticipated life will be included in the CIP. XI. DEBT MANAGEMENT POLICY Long Term Deb! —The City will manage its long-term debt in a manner designed -( Formatted: No underline to utilize its credit to optimize City services while balancing overall debt levels and annual a service obligations. Long-term debt includes Bonds, - ail federell or _`4ate- „tat„ 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). • 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. Comprehensive Financial Management Policy Guidelines Adopted September 15, 2025 Page 17 of 22 Tax anticipation debt will be retired annually, and bond anticipation notes will be retired within six months of the completion of the project. Short-term debt outstanding at the end of the year will not exceed 5% of net operating revenue (including tax anticipation notes but excluding bond anticipation notes.) The City's Limited (non -voted) General Obligation (LTGO) Debt Capacity per State Law is 1.5% of total assessed value. The City should seek to retain 5-10% of its LTGO Debt Capacity for unforeseeable 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 Short Term Debt — Transfers and Interfund Loans_— General Fund transfers to -( Formatted: No underline 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- -- {Formatted: Indent: Left: o.zs° 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- ---(Formatted: Indent: Left: o.s° the lending fund; o The lending fund is the General Fund, which, being unrestricted, can provide interest free loans to other funds. • The term of the interfund loan will not exceed three ears. An interfund---- Y Y {Formatted: Indent: Left: o.zs° loans that are not repaid within three years will be scrutinized for a "permanent diversion" of moneys. (Note: These restrictions and limitations Comprehensive Financial Management Policy Guidelines Adopted September 15, 2025 Page 18 of 22 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 try,avcaiid l�ii„gl er interest rate casts.. 111Al11ZT91aeFyI►Lei li11EWA 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 t4 ----State Auditor'V requirements. The City's Purchasing Ordinance edit --outlines 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 ....:t-ate...al"I�?..federal law art applicable r�rartt reritirrrbrtt; 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. IIIIA:14x01:T91►1[02111►UIRSI:ULlPya:I:J11111191IIW1 Commented [7E7]: Added federal here since there are some purchasing guidelines that differ when using federal funds and following federal requirements. Electronic payment methods are a safe and efficient method to process disbursements and receive payments for City business. (City policy is to establish Commented [JE8]: This is confusing. Are you intending to that the City policy e the best methods to process payments to employees and vendors. k--addiit 04—, say that it is the Cits policy to establish these methods,or ' establishes the best methods? They aren't an o receivepayments rom quite the same thin I recommend clarifying this. V�I................................... q g• Y 9 customers and vendors. Electronic payment methods may include :the ......use .....of Electronic Funds Transfer (EFTs), Automated Clearing House (ACH), Wire Transfers, credit cards,,, and debit cards. The Director of Finance & Technology Services (Finance Director) will maintain — Commented [7E9]: This is stated throughout the document. For owards administrative/operating procedures to manage sound electronic fund transfer thetopciedthensi mmendyFinanou c Direco"throunce up throughout the top and then simply use "Finance Director" throughout the policies and procedures. document. XIV. GRANTS MANAGEMENT POLICY Comprehensive Financial Management Policy Guidelines Adopted September 15, 2025 Page 19 of 22 Leveraging City and community resource with external financial assistance...iiun the fcarrm...p:.f. .r l :t , can enhance the quality and level of public services, facilities,, and infrastructure It iis..al c. City's k'policy its to seek out spell„.. fcar 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 out and identify potential grants which may further the City's vision and goals, within the City's financial limitations. Pre -Application — Department Directors and staff shall pursue rants Formatted: Font: Not Bold p p g within their purchasing authority identified in City Purchasing Policies. The City Manager shall be advised of all grant considerations over a $10,000 total. Formal Applications Formal applications directly by the City, or indirectly -( Formatted: Font: Not Bold by other agencies involving the City, must fall within Departmental Purchasing levels. AfN In ;q,RRyun fear end �euverr er grant f�... s tl q.., t�...... 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, as cauHl nc d lin (he II �,prclgs�lln II �callli�;, es� anr�,,,ll Ircacedures� IM,arru-J. Award and Contract — Upon formal Notice of Grant Award (NOGA) or informal -( Formatted: Font: Not Bold notification, a written contract for the grqut award must be approved prior to any City commitment, formal or otherwise relI tunq to tl e qr nt car pllsnncr sc tiiviitiies that_uvi HI be uppg.!tq.� �. rent rmrraniies. All grant contracts must be within the City's Purchasing levels.1 l_fio gronr! r,qulins o rrm�f� �rrof�alr� f�lr, li[y qu[Ircarligf�licam� fiuc�nf Co un6li Il rn ust be r� a e iily d l�riicar #c grams# opplliia o#iiram�. Any needed budget amendments for grant match not otherwise within general budget authority shall be adopted prior to formal grant acceptance and contract signing. Accounting and Reporting,— City departments shall coordinate with Finance to assure that grants comply with d „federal, S2tate., and local requirements for timely reimbursements, monitori - . vendors and sub recipients fear grant rcgtgilrprtpu:Ls, corms„pllusnc.2, 4--a- n,r� ensui„p adhercnc�e tcaCity Purchasing Policies. Any Formatted: Font: Not Bold Comprehensive Financial Management Policy Guidelines Adopted September 15, 2025 Page 20 of 22 notification of audit of grant programs or funds should be sent to the f::::Fetr;af d::iiG o c lla y--" G@s iiinanc 1I )iir ctor even if the audit is coordinated in another department. COOS@ �Ut — �f£v �al� Nr:.�C'C9kNl "WWII —( Formatted: Font: Not Bold Upon conclusion of each grant, the Department grant manager shall prepare a grant close-out report in coordination with the City's Finance Department. IMulltii yt, E grglllll l , v � eriicar ii e��ca��ntuuzq...... rcviievvs u22t (less than at the c�losc of eac�l�...flsc�all ycsr,..,.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, 2017I. Standards for federal awards are detailed in Appendix B. EVI W%TIM Ll Ewa MYN 9 :8 1i11 EWA �As part of the annual budget process, the Vacancy Rate Policy requires setting vacancy rate based on an assessment of market conditions and vacancy rate trends. The rate would then be used to calculate an equivalent General Fund savings from unspent employee salaries and benefits, from which eligible expenses can be funded up to those savings. Expenses must have direct nexus to the impacts of or mitigation of staff vacancies, including: • Employee engagement programs facilitated through the People & Performance Department • Staff training • Short-term contracts of less than 6 months duration • Seeding the Rainy -Day Fundl At least 20% of the Vacancy Rate savings, should there be any, is recommended go tea-seedNRg-oft sae„gatd to seers the Rainy -Day Fund. Formatted: Font: 12 pt ... ....... ...... ...... ......... 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Dg_Wll�l be ..:: .................................................................................................................................................................................... ............. ............. .............. . ............................................................................................................................................................................. P . .......................... �2' M.airntairned., recor6ng I ........................................................................................................ ............... ....................... 2 , s d I i a c E ��s ue t1t e date of ssu .. .................... ..................... .................................... .......... .... ............... ..................... ................................................................................................. 0 . .. ...... arid t�ie . ........................................... 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Fhe forryi must be c ��:!]..p Formatted Font color: Red or 0.2!g..Llz.ed .. . .......... arid returned before the or.,c Formatted: Font: (Default) Arial, 12 pt, Font color: e 1�na�� check. can be v6ded arid a j ........ ............. ............................................................................................................................................................................... ................................................................................................................................................................................................................... .................................................................. Formatted Comprehensive Financial Management Policy Guidelines Adopted September 15, 2025 Page 22 of22 Gen., ewMew check iis SSUed UpgEl t A c n s F:1 ay ir I h ate a CIFormatted: Font: (Defau (Default) Aria 1, 12 pt, Font color: Red ........................................................................................ ....................................... ............... ... ......... u............... t ........ ............... .. .............................................................. !2P 1,.I2n 21.� 2r�,q�l a� hec.k...and ... ....... 2 .......... c ........................... ....... ...................... .. . ...... r..e..i.s s u a r i c......e ..... .. ..... . .... ... ... ..... . .... . Comprehensive Financial Management Policy Guidelines Adopted September 15, 2025 Page 23 of 22 APPENDIX AI *- - - Formatted. Centered INVESTMENT POLICY To the extent possible, funds not needed for operations should be invested in approved investment vehicles. Investments shall be made with judgment and care, under circumstances then prevailing, that persons of prudence, discretion, and intelligence in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived. The standard of prudence to be used by investments officials shall be the prudent person standard and shall be applied in the context of managing the overall portfolio. Investment officers acting in accordance with written procedures and the investments policy and exercising due diligence shall be relieved of personal responsibility for an individual's security's credit risk of market price changes, provided deviations from expectations are reported in a timely fashion and appropriate action is taken to control adverse developments. The City will strive to maximize the return on its investments, with the primary objective of preserving capital and prudent investment practices, including diversification. Investments will be made in accordance with the following objectives: 1) Legality: Funds of the City will be invested in accordance with the Revised -__--Formatted: Underline Code of Washington (RCW), the BARS manual, these policies,,,,, and any LFormatted. Indent: Left: Hanging: 0.19" applicable administrative procedures. 2) aafety: Investments of the City will be undertaken in a manner that seeks -Formatted: Underline 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 not exceed the income generated by other investments. 3) Lin quiditx: The City's investments will remain sufficiently liquid to enable the -( Formatted: Underline - - - -- ------------ Gt�ity to meet red can a�alla aryl cuauted operating requirements-*, be rea&GRablly a. 4)pYield: The City's investments will be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the City's investment risk constraints and cash flow Formatted: Underline characteristics. The d;4@4 r :: a G o �rw : G a tc l unau 1I ).l.r .c:t2.r. will approve financial institutions to be eligible to conduct investment business with the City, in accordance with Washington State Law. Comprehensive Financial Management Policy Guidelines Adopted September 15, 2025 Page 24 of22 The ����[vU periodically furnish the City Manager and Council with a report that shall include the amount ofinterest earned to date. At least annually, a report summarizing investment activity and rate ofreturn will be provided. Comprehensive Financial Management Policy Guidelines Adopted September 15, 2025 Page 25 of 22 APPENDIX B - CITY OF PORT TOWNSEND FEDERAL AWARDS STANDARDS;,, AINID IFIEJI:XEJRAII..... IFUINII)S CODE OF CONDUCT ���Y�]Ali]:i�riP�9►69�►1�7���7�:7e1�e\h%1:��>��/e1►1�7e1:���� PURPOSE Establish and maintain internal controls that provide reasonable assurance that d:.;:e... :f derail..awards are �I -managed in compliance with,aI�federaI ll,aws,a,nd, regulations and cconsustcn,twith the terms and conditions of the award. The City of Port Townsend will follow the ..f.e. d e ra.J 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 ,as.,i2p cablle and a pro riiate'for federal) r�wardsf . INTERNAL CONTROLS The City of Port Townsend will maintain effective internal controls over tt Fe. ... f dera.11awards *t - q...s t..q.. [gvLde reasonable assurance that ...11 ......... the City of Port Townsend is managing t fodoraawards, in compliance with aPt.!!Jcablle G.:e- :federal) statutes, regulations, and the terms and conditions of the .I....: deFail f.e. d, .ra..11...award ....a...he QJIshall)): • 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 d:.;.... -,f derall••••,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 Formatted: Centered *- -- Formatted: Centered Comprehensive Financial Management Policy Guidelines Adopted September 15, 2025 Page 26of22 will meet the following general criteria to Ueallowable except where otherwise authorized bystatute: ° Be necessary and reasonable for the performance of the award-, ° Conform to any limitations orexclusions set forth in these principles orin tha award aohotypes oramount ofcost itamo� ° Baconsistent with policies and procedures that apply uniformly hoboth �..federally- financed and other activities of the City of Port Townsend; ° Baaccorded consistent traatmant . ° Not be included as cost or used to meet cost sharing or matching requirements ofany other nanoadprogram ineither the current oraprior pariodia n d • Be adequately documented. SINGLE AUDIT ACT The City ofPort Townsend, aoarecipient of funds, shall adhere to CFR§2OO.5O1 ee��a ndaUo I h e r. applicableandand regulations. _CLOSURE Formatted: Font: Not Italic 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 Comprehensive Financial Management Policy Guidelines Adopted September 15, 2025 Page 27 of 22 EE.l.:�IEJI�AII..... IFUINII.. S CODE OF CONDUCT �-�Formattea: Centered CITY OF PORT TOWNSEND................................................................................................................. 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 e er knot„solicit nor accept gratuities, favors, or anything of monetary value from contractors, stbc ou to gg.1 r „x„_ca,r„_tl�, ,ii,r..ag,ents,,,,,_or potential contractors,,,, or subcontractors or tj2.j agents.. REMEDIES To the extent permitted by federal, state,, or local laws or regulations, violation of these standards may Gaa. r st,Illt iiun penalties, sanctions,, or other disciplinary actions (up to and including employment or contract termination) tG—he F against the City of Port Townsend's elected officials, employees,, or agents, or the to ll....2.r....p.ot u�tiisll...contractors, teal ap t,^ —subcontractors,, or their agents. Any potential conflict of interest will be disclosed in writing to the ede-�;ali .f.e. awarding agency or pass -through entity in accordance with applicable f'e... � f d 2.j awarding agency policy. Comprehensive Financial Management Policy Guidelines Adopted September 15, 2025 Page 28 of22 ARR1:..:..jqEY1X C- ..................................................................................... i N T' E::: 1R 1F U N E ) I OAN PQ1 lICY ........................ = ............................................................................................................................................ PURPOSI: .................................................................................................. El 2 P..Lim.22!2 2-112....s e ggjr.d e i e.s firm t ti. e., .... .. ... .. .... .. .... .... .. .... ..... .... .. .... . trraru 2�Lr g 21 2g interfund oans Fhe G1 of F:1ort �.j] �Dier assets us�ir q � y .................................................................................... r .. ............................................................................................. ...................... .................. ........................................... s a non charter..code ciry.,, L ��,,..gjsl.a �v b d t .� .......................................................................................... ............................ ............. . .. .. ........... ....... t , ! 2 Y Y. t';car.uu dill ln�gu�,"zg'Lgise Is 12 g.p ... rove interfund Moans. .. .... ..................... ............. .. ...................................................................................................................... I. PG1 icy .............................................................................. j]js. a p ................................ .................... Y . ...... . .. �Jes to a�l Moans rnade between two or rnore Gc.l funds,, Orfl that .......... Y P . ..................................................................................................................................................................................................................................................................... ...... Y'. . ........................... 122rfiori of agliven fund wNclt is clla y nagfive or carries a ballance in excess of : .................................................... . ..................................................................................... ] .......... ..... ..... e . ......... r - . .............................................................................................................................................................................................................................................. i ti.6.pgted or qgrEg,..nt needs for thy, anfi6j,.�gj§,,� �gDq " �gg D ! D f, Y t.2 g, g 0 g, 0 .. ................................................................................. ........ ............................. .. to other rnun�cr . g ..................................................................... !g.D.0 ............... .1 1 te rf.0 r i d I!.o.a r i s a-Feconsiist.of the le.r....n...... p... rarer or shred terryboriowri of cash or .................................................................................................................................g ............................................................ .o e r a s s el..s a r i d ry.a be rnade for tLe fo!j I .................................................................................. I ........ ............ nuM.O.a ma... -R- r.att.d. Centered I .................................................................................................................................................................................................................................................... . . a�Jo offset firy.jin 6fferences in cash flow Formatted: Bulleted + Level: 1 + Aligned at: 0.75" + . ...................................................................................... I .......... U ............................................................................................................................................. Indent at: 1" .................... *To offset firri.in 6fferences bet e "n ex.[..�,, (ures arid ... ......................................................................................... ....... .. ....... ...................................................................... ....... YZ �� ......... ............. ......................................................... r..e..r r Y] b u rs. e r Y] e r A.s., .. ..... . . . .... ... .. ... ..... . . ..... . .... =!ypircalHy e DI !gDolna�. ................... g pE2y.I..d.......e......funds,,,,,for .......n.......t....e..........l..r....n........f....i..n.......a...........ci.n .i..n...... .c.....2nt.g.! .g...fi.......o.......n..........w..........i....l..h .....o........b......t....a........l.....j....r...r...c - [Formatted: Indent: — — Left:— — — — — — — — — — — — — - to r r Y.], ............................ FF.rmatted. Bulleted + Level 1 + AHgned at 0 75- + ......... ... F:: . or short terryi b r ow.n in ..... . . . . Indent at: 1" o � . ............... q. g g ...................... ................................................................................ ............ .. .. .. . ............. .. . 0-�F::or other needs as deerned ar)DrOr)rlate bv the GN Coun6lll r2terfund Ilraran rilonies rna oruJy..be used for th § . d e ri t[e d i t t]e ............................................................................................................ ...................Y. .................................................................................................. ...... ...�... auktrrariiz ii.r i g A.�p...Egp Ela eacco rifingEff go, �M41shall be rnaintained to . ........... ......... .......... ................................................................. .r................................................................................................................................... Leff e c..t I t] e .b a!!.a.r2ces of oarrs in eve fund affected by 2gj].jE2Dg 21or)s ....................................................................... .............................. ........................................................................................ ..�� .. J�.. .......... . reasor.iab.J.e L�?!e ofrnterest based on rnark.et rates wrbe ,.�gid on each interfund ..... ........ ..... ... .... ........ ...... ..............j......................................... ............................................................................................................................ ...............[................. ................................................................................................................... �loan I II L �P IR 0 C E.:..: E) U IR E:"::' . ................................................................................................................ It s riissiUe to rnake interfund Moans of those rnur.jcp .................................................................................................................................................................................................................................................................... ........... ..... g 1� i Mgojes wNch are ........................................................................... ell E!!y nagfive or carry a ba ance [I excess of antic.ipg.1 .0 ,.!It needs for g.[ g2.E[§ . ................................................................................... ..................................................................................... ... .. ................................................................. 21.� ..... . . . . �g..Olr c 2.f the Moan arid ��e a�l.y ..ypilaUe for investryie.rit (j,.e, car] y ... . ..... g .. ........ ............................................................................................ 9 ............ . ........................................................................................................ .......... ... ........ ....... ._ .r i o r..e..s ti r.c..t.Jro...D..s o n L.t.��.a..,9.el, jtr� ..... . . . . Einance lirector, aFl4iin . ..... .. ..... .... . . .. .... . .. .... .... ..... .... . .. .... ..... . ........................................................... ............................ .............................................................. .................................... ................................ ggns,gj!,tp..!lon withj e Cily h QL la 21. i deterrn�ne wNch in ne or in y 2 ! ot be ..................ay.a........i..l...a........U.........e...........f....o.......r........i...n.......t...e.........r....f....u.......n........d......IlemncVinq . ....�.as. .t....h.......e...... ................ .....................................c..............h.........a......r........a...........c...........t........e................r...........o.............f............................... .....m...................c......e........r....t...a.. .....n ynyqty�"� ggmr..�(rts drticfioris, wNcliWuildRl .car ......... il i d �.YJ d u a c o r i aid e r al.J..o o Comprehensive Financial Management Policy Guidelines Adopted September 15, 2025 Page 29 of22 I.j].�... �.,...q... ireryients for rri tills: n .arid accourit�ri ... firm nterfund Moans are as fo�ows .j..................................................................................... ...........................................................................................!.........................................................................................................................................................................................................�.� . "" . 2�j u t a p 1 Fhe Gly I ry � Egy �o!4! I s P -feGe 41 interfu d �oa s b ... ............................. .. ... ....... .................................................................................... 0 ............... 0 ....... ....... Y E!22okiHon �#&Such resoluliori jj rricud.e..a ................................................................................................................................................................ .. .. ... .. .............................. ........ ........ n i D6q, , ., ., 2 1,.1L.. c 22=2 D! 2L!ii� 122. g, ..pt .............. t a r..e a s o r i a b ll..e r..a t e.� .o.... f.. i. r i.le..... r...6.."..s.....l .t... 2 1.r�.. paid to the er16rig t2gjref t h e i nLe r fLln d ............................................................................................ �.�...... ..... . .... .... . .... ....... . . .... ..... o a n ............... ti. e firallllrauwiiri.,q a s i.je 2f ... . .................................................................................................................................................................................................... ......... ....... 1.�]§ g.2�ide���iries shoUd be used in est U�r N.rig Lg e r e..s I a INot Ilower than th.e..."op 2EIg.! Ir �.y .................................................................................................. .......... ........ ............ .... p .... ... . ...... gg�.j f t t] e f..0 r i d s w..e r e ol t] e r.w..J.s. e. rrives.ted such as the I G I F:1 t �:1 0l .. . ........................ .................. .................................................................................................... .... M..r Y.] e r i t I r i v..e..s t r Y.] e r i o rate or a bank. CA ) rate for a sirniilar terryi ....................................................................................................................................................................................................................................... Y�eIds or shod te.rryi bo.nd yieUs for a sirniilar terryl Formatted: Indent: Left 1", Hanging: 0 1 9 ...... . ........................................................................................... .............. ............. .............. . .................................................................................................................................... ... ....................................................................................................................................... ] 2. N.2! t].r her than the exterr4� rate ava��aUe to the ry un�cp.g. .g I � i ��r ... .................................................................................................................................................................................................................................................................................... .... !..Y 2 1 rite e t i n tr e a d on ryterfund oans Formatted: Indent: Left 0.44", Hanging: 0. 1 9 q 2.r re d to b p ..................... ............. E o ...... ..... e .. ..................... ............ .............. ........ ... ............................................................... ...................................................................... I g.l.E.c u Y.] s t a i c..e..s a Fhe boriowlfg.!0 O.q Ilrde'. endent source of revenue othe Formatted: Indent: ........................................................................... ............. .... ........................2 ............................................................................................................................................................................... I t] a r i t t] e g,.rij ii.r i g I o r . .. .... . . . .... . . ... .. ....... .... .... ............ .b ............ t] e b o r.1 o.wrrig Dd is rio.rrnal.[y i r 1,q I ... ...... .. .. ... .. .... .......... . ....... ........ ............. ........................ .. ......... !g �!::::urid ��s used to !grid Streets arid a �14! .............................................................................................................................................................................................................................................. 2 P .................. as, .............. It i e e r i d i r i.,q fund is the Geriera�� F:: u r i d whjch belng I I cted,. . .............................................................................. . . g.! E� .................... ........... ... .............................. ................ ................. ........................ .... . L�� ......................... can oan ir t re t fi e e ce tj a a fun (�r .e ........................................................... i .......... ................ . .. . . . . . . . . . ....... 2� .............. 12 2 ........ . .......... ! 11 ....................... d . . .... ....... fundssuch as Water arid Sewer.,. ... .... .. ....................................................................................................................................................................................................... .... ) 3 Fh e bo.riowl fg.!10 Y I i i .g.M.g.lent revenues to be in a ! rg, 1 g! .................................... .............. ........................... ....... .... .... .... .. ........ ...................................................................................................................................... p.osi(iori over the p.g,..E�od of the Moan to rna.k.e the sp .,,.g.jified p.Eirr I c i ................................ i .................................................. i ................................................................................................ ................. ............. .................. ....... . ....................... .. ................. :call r I t e.Le.s . . .... .... .... yjl]...11.11..'2..� ff."'..9.21e. d i r i t t] e a u I t] o r..r.z.Jr.r r.g o ri .... .... . . .. .... .... .... . .. .... . . .... .. . .................... FF.rmatted. Indent: .4 ............ t] e terryi of the o.an rna rig g,.L� o d ........... o f r Y i o r e t It i a n one e y y 2 ................ o e a g ...... ........................................................................... ............. ................. . ....... Y L tAAhowever the interfund ��oan r s e , e I .................................................................................................................................................................................. 11 u Lb I ry.p ..E.y' in the sense that no ......... ..... .............. ......................... . . .......................................................................................................................... 1,.�.g,..Ernarierit diversiori of the er16r.a fg! d resuRs fiorn the failure to r6, 1,2!g ... ......................................................................................................................................................................... I i ...................................................................................................................................................................y., 1.1y 111� . .. . . . . . ln.Lnyr r I g L! d A Moan that confinues O.r I Y �Yr .......... ....................................................................................................................................... ......... ....... .. ....... .b. e s c r u IJ r i ii..z e d firera I Y I f n these Ej iarient divers�ori . ..... o rno e ., (. § .... ................................................................................................... ........... ................................. Y, . !�21 ......................................... .r.. e....s... t. .. .i. r. c..... I... J... 2..... ri.... ....r.i d.... Iliirrriita#iirrrr.... d.... o.... r.i o.... t.a.......p...p...y Ig !1]g� § funds wNch are 11e ag ..�............................................................................................. .......... j.,.�e.LMj((ed..to s u j,...jp I u p,.....E2P at.lo.ris t i a r i s fe rs.,. 2! e another thro q..�] g P. ......................... ........... .............. ............................................................................................ . .... ............ ......... ............. .................................................. ............ .................................................................................................................................................................................................................................... I L.lpmesa2 t n Ee.g2.Lo . ..... t un jr g g........... ......... .. �y�.J.� b e r Y.] a..J r i t..a..J r i e d 12 r e [!..e c I I t] e.. Formatted: Indent: Left: 0.44", Hanging: 0.19", Numbered ballarices of Iloaris in Give fund affected b I + Level: 1 + Numbering Style: 1, 2, 3, ... + Start at: 1 + y sact��oris .. .................................................................................................... .......... ....... !1 ......................................................................................... ..................................................................... Alignment: Left + Aligned at: 0.25" + Indent at: 0.5", Tab Interfund loaris rece�vaUe arid interfund loaris be stops: 0.63", Left .......................................................................................................................................................................................................................................................................... Y . .. .6...................................................................................................................................................................................................................................................... . recor16l�ed r.)6,rio6callv b—Fhe oriair4l interfund Moan arid reL.)awrients of #tr6, !!..o a a r e r e c..o rd.e d as no.riexr..�e.odr lure 6sbursernents arid .............. ............. .............. ..................... .. ............................................................................................................................................ r orii-evenue rec ii t � 1 � interest ori an interfund Moan will be ................................................................................... : ..: . ....................................................................................................................................................................................................... Comprehensive Financial Management Policy Guidelines Adopted September 15, 2025 Page 30 of22 I. TIENPORARY HTTIERFUNE) I OANS ................................................. ............................................................................................. = ........................................ .................................................... Aulhor�zafior o2hrrmo r IriterfuridIl oaris Fhe F::Iriarice DIrector is aulhor�rze.d FF.r-att.d. I ....... ................................................................ . .......... 2 12 Y ..................................................................................................................................................................................... :: ............................................................................................... ............. ....... arid 6rected.to rn.ake tern.p n a ...... .................................................................. ........... .......... .................... ..................... .... 2.E�?E.y �.22. r i s fl o r Y] t e G e .......... e r [::: u r i d 12 1.�]§ g 1pir (all F:: unds as ne e s r to elhrniriate n q .j.r e cash ballarices arisjrrig !L . .... .. ........................................................................................... 2 2 Y ................................................................................. Y ............................................................................................... .................... .. ....... j.r 1iin .6ffererice bewe n e pg..O.Ji1ure of [.�.Egj221 22j� gD� [.�j 2! .!it ............................................................................................................ . .............. ... ........................................ � .. ..... ...r..e..J Y] b u r.s. e r Y.] elits or..other..ap .. revenues p ................. ............. ............................... ........ . ................................................................... e ........... arYioumi# t i a r i s f c..� r i e d ........... a t g,..r id of is does riot exceed ... . .... .... y a ....... ............ . ............................................................................................................ e t e r r Y].� is. r i ol 12 e x c e e..d 60 day .............. .............. . .. I oar i ['.e rr Y]sa amid d C o o d.(o r i s : .......iJ... . . ................................................................................................................................................................................................................................................. 2..,..,,[Dje rest FRate Coiri§steirit With FBAR.S Mairrua.J X,.g) E�2 Formatted: Underline ...... ..................................................................................................................................................................................... ......... ....................... .............. ... i r I lerest sha�l accrue on these oans because flle ...e.1.1d i r i.q fund is the . . ........................................................................................................................................................................................................................................................... ..... . .... .... . . .. ............................................................... Genera�� F::und arid each borioWna fund is a aovernrnenta�l fund 2.1 y t SchedUe E.:.:ach oan sha�l be rej.,.��?1d in fUl rnrne6at.ej 2 ................................................................................................................................................................................... ........... ................................................................................................... ......... ... y Formatted: Underline 91.220 gflt��. p p caegg!lt rmbuserneit oothe r .. !j..f..................................................................................................... ........... ............................. in no event ate.r..tha.ri six y & t Q.) fgy .. , fg ....................................................................................... ..... .................. ....... .................... .. 2.e. r t e c..��.o. s e o f t �2. e. .f.]C. .s 12 .. .. .... C. . L .i...n........N..........c...h.......t..h.....e.........o.a...............i.s......na.d......e......... riFhe F�riarice D�rector sha�l record a�l oan . . ................................................................................................................................................................................................................................................. 9.;........................................................................................ :: ........................................................................................................................................................... , - fg Formatted: Underline .............. . a dy.allc...6..." s r.f'.111..i�ay I !11� UJri ba�larices in accordance Wiffi, Formatted: Indent: Left: 0.44", Hanging: 0.119", Numbered ..... .... ..... ... .... .......................................................................................................................................................................... 'ii[y Start at. ,the BAFRS IMarivall ari.d..shaj.l re[.i.q!j jt1� of each oan to the. C. + Level: 1 + Numbering Style: 1, 2, 3, ... + Sta . 1 g ..................................................................................... .................. ............... Alignment: Left + Aligned at: 0.5" + Indent at: 0.7'5" 4 � C', ............................................................................................................................................................................ ......... ........................ 2uric��� at ��east a n a�j urit��� t�le �oarl ��s ret��red ................................................................................... 0 2 ! Y .......................................................................................................................................... �R E::: �F E::: �R E:::Iq �C E::: S ............ = ........... ............ :::::� ..................... = S.12.1.e A u d..it.o r.'..s 0 .0 E: U., o-.1 i a d R p .... ... . ... �.r.,q q.E! :3 d . .... . . ........ M.g. D.g.g. S i.r. T i a 1.! C iit...Y I lairidbook ..................................................................... Resolution 25-028 Page 1 of 2 RESOLUTION NO.25-028 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PORT TOWNSEND, WASHINGTON, ADOPTING UPDATED COMPREHENSIVE FINANCIAL MANAGEMENT POLICY GUIDELINES AND REPEALING RESOLUTION 21-004 WHEREAS, the City Council adopted a set of Financial Policies and Budget Guidelines relating to Revenues, Expenditures, Reserves, and general Budget goals and guidelines in Resolution 99-051; and WHEREAS, the City Council adopted an updated set of Financial Policies and Budget Guidelines relating to Revenues, Expenditures, Reserves, and general Budget goals and guidelines in Resolution 14-042; and updated by Resolution 16-042; Resolution 18-034; Resolution 19-085; and Resolution 21-04; and WHEREAS, the City Council adopted an updated set of Comprehensive Financial Policy Guidelines relating to Revenues, Expenditures, Reserves, and General Budget goals and guidelines through the budget process in years 2023, and 2024 (Ordinance 3325; and Ordinance 3344); and WHEREAS, the State Auditor's Office and the Government Finance Officers Association recommend cities adopt and perform periodic updates of Financial Policies; and WHEREAS, the City is now consolidating its Comprehensive Financial Policy Guidelines to incorporate previous actions on these topics, as well as conducting updates to the same to incorporate changes to state law and other technical changes; and WHEREAS, the City Council finds it in the best interest of efficient operations and prudent stewardship of taxpayer dollars to adopt updates to the City's Comprehensive Financial Management Policy Guidelines at this time, including incorporating new section XVII titled "VENDOR PAYMENTS" and APPENDIX C titled "INTERFUND LOAN POLICY." NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Port Townsend, Washington, as follows: Section 1. Resolution 21-004 is repealed and replaced by the attached updated Comprehensive Financial Management Policy Guidelines included in Exhibit A to this resolution. ADOPTED by the City Council of Port Townsend, WA at a regular meeting thereof, held this 15th day of September, 2025. Resolution 25-028 Page 2 of 2 David Faber Mayor Attest: Alyssa Rodrigues City Clerk Mayors for Peace Registration Form To Mr. MATSUI Kazumi Mayor of Hiroshima President of Mayors for Peace I hereby express my city/municipality's support for the abolition of nuclear weapons and desire to join Mayors for Peace.* Name of the city/municipality**: **This is the name we will use to refer to your city/municipality in our database. Name of country: Mayor's name: Title: Mayor's Signature: Date: Mayor's office address: TEL: FAX: E-mail: Website: Municipal Population: (as of ) Contact person Name: Title: Position: E-mail: Questionnaire How did you find out about Mayors for Peace? El Member City: (Name) El Ministry of Foreign Affairs of your country ❑NGO/Organization: (Name) El Meeting with Mayor of Hiroshima ❑ Other: (please specify) Please send this form to: Mayors for Peace Secretariat FAX :+81-82-242-7452 E-mail: mayorcon@pc£city.hiroshima.jp Note *This registration form implies your city/municipality's decision to join Mayors for Peace. If your city/municipality requires specific procedures, including approval from your city/municipal council, please submit this form after such procedures are completed. *Mayors for Peace runs several social media sites (X @Mayors4Peace, Facebook @mayorsforpeace) where we would like to introduce our new member cities. We ask your permission to share information about your new membership with our followers. If you agree to the above, we ask that you please provide (1) a photo of the current mayor and (2) a photo that represents your city (landmark, landscape, etc.). Thank you in advance for your cooperation. IMayarsfar III,,,,1 Seciretaidat c/o II- liroshilima IFneace CLA quire IFbU inda�&loin, 1 r INalkaJlliimac1ho, INalkaIkU, II fiiiroshilima 730-0811 JAIFIAIN I.-imailll: imayoircoru@1ccf.city .lhiliiroshiliima,,lll WlW/elbsiit : rnrcnrrnr.imayorsfoirpeace oirg July 2025 Dear Fellow Mayor, I trust this letter finds you well. In August 1945, two atomic bombs instantly reduced the cities of Hiroshima and Nagasaki to rubble, taking more than 210,000 precious lives by the end of the year. The hibakusha—those who barely survived —still suffer from the harmful aftereffects, notably of radiation. While their minds and bodies are in pain, they continue to make their appeal that "no one else should suffer as we have." With our hibakusha aging, we are determined to have their experiences and strong desire for peace shared and wholeheartedly accepted by future generations, and to have those commitments spread throughout the world. I am convinced that spreading their message will eventually lead to the realization of their most cherished will, the abolition of nuclear weapons. In 1982, Hiroshima and Nagasaki established Mayors for Peace to achieve this goal. It is a non- partisan, global network of municipalities that is registered at the UN with ECOSOC. Since its establishment, Mayors for Peace has expanded its membership and worked in solidarity with its member cities to call for the realization of a world free from nuclear weapons and lasting world peace. Presided by the Mayor of Hiroshima and vice presided by the Mayor of Nagasaki along with 10 other mayors of cities from across the world, as of July 1 st of this year, Mayors for Peace has grown to 8,497 member cities from 166 countries and regions. In January 2021, the Treaty on the Prohibition of Nuclear Weapons entered into force, which is the first multilateral treaty to clearly and fundamentally define that nuclear weapons are subjected to total prohibition. This is a proof that voices of hibakusha and those who share their fervent wish for the total elimination of nuclear weapons pushed international society forward. In this context, Mayors for Peace adopted the Vision for Peaceful Transformation to a Sustainable World (PX Vision) and Action Plan (2021-2025) in July of the same year. The Vision sets forth three objectives: "Realize a world without nuclear weapons," "Realize safe and resilient cities," and "Promote a culture of peace." In order to pursue these objectives, we have decided to put a greater emphasis on the expansion of our membership. The growing number of Mayors for Peace member cities is a powerful force building real momentum toward peace and the abolition of nuclear weapons. To this end, I humbly ask that you share in our sincere message from the atomic bombed cities of Hiroshima and Nagasaki and join Mayors for Peace to support our initiatives toward genuine and lasting world peace. Sincerely yours, MATSUI Kazumi President of Mayors for Peace Mayor of Hiroshima Mayors for Peace Registration Form To Mr. MATSUI Kazumi Mayor of Hiroshima President of Mayors for Peace I hereby express my city/municipality's support for the abolition of nuclear weapons and desire to join Mayors for Peace.* Name of the city/municipality**: **This is the name we will use to refer to your city/municipality in our database. Name of country: Mayor's name: Title: Mayor's Signature: Date: Mayor's office address: TEL: FAX: E-mail: Website: Municipal Population: (as of ) Contact person Name: Title: Position: E-mail: Questionnaire How did you find out about Mayors for Peace? El Member City: (Name) El Ministry of Foreign Affairs of your country ❑NGO/Organization: (Name) El Meeting with Mayor of Hiroshima ❑ Other: (please specify) Please send this form to: Mayors for Peace Secretariat FAX : +81-82-242-7452 E-mail: mayorcon@pc£city.hiroshima.jp Note *This registration form implies your city/municipality's decision to join Mayors for Peace. If your city/municipality requires specific procedures, including approval from your city/municipal council, please submit this form after such procedures are completed. *Mayors for Peace runs several social media sites (X @Mayors4Peace, Facebook @mayorsforpeace) where we would like to introduce our new member cities. We ask your permission to share information about your new membership with our followers. If you agree to the above, we ask that you please provide (1) a photo of the current mayor and (2) a photo that represents your city (landmark, landscape, etc.). Thank you in advance for your cooperation. CMayors for Peace 1. Outline In August 1945, atomic bombs dropped on the cities of Hiroshima and Nagasaki instantly reduced them to rubble, taking more than 210,000 precious lives. With more than 75 years since the bombings, many survivors (hibakusha) still suffer from the physical and emotional aftereffects of radiation. To spread throughout the world the hibakusha's ardent wish symbolized in the message that "no one should suffer as we have," and to ensure it is passed on to future generations, Hiroshima and Nagasaki remain steadfast in our assertion to the world that nuclear weapons are inhumane and continue to call for their abolition. On June 24, 1982, at the 2nd LIN Special Session on Disarmament held at the LIN Headquarters in New York, then Mayor Takeshi Araki of Hiroshima called for cities throughout the world to transcend national borders and join in solidarity to work together to press for nuclear abolition. Subsequently, the Cities of Hiroshima and Nagasaki established "The World Conference of Mayors for Peace through Inter -city Solidarity" (now, Mayors for Peace), composed of mayors around the world who formally expressed support for this call. In 1991, the organization was registered as an NGO in Special Consultative Status with the LIN Economic and Social Council (ECOSOC). 'On August 5, 2001, the organization changed its name from "The World Conference of Mayors for Peace through Inter -city Solidarity" to "Mayors for Peace." 2. Mission The purposes of"Mayors for Peace" are to contribute to the attainment of lasting world peace by arousing concern among citizens of the world for the total abolition of nuclear weapons through close solidarity among member cities as well as by striving to solve vital problems for the human race such as starvation and poverty, the plight of refugees, human rights abuses, and environmental degradation. 3. Structure 1) Member Cities (as of July 1, 2025 Area Countries & Regions Member Cities Asia 39 3,370 Oceania 9 137 Africa 49 441 Eurooe 41 3.462 North America 3 344 Latin America 25 743 and the Caribbean Regions: Taiwan / Palestine / Northern Cyprus (Asia), Northern Mariana Islands / French Polynesia (Oceania), Somaliland (Africa), Kosovo(Europe), Greenland (North America), Puerto Rico (Latin America and the Caribbean) 2) Executive Cities The following 21 cities are executive cities (From oldest to newest). President City: Hiroshima (Japan) Vice President Cities: Executive Cities: Nagasaki (Japan) Hannover (Germany) Malakoff (France) Muntinlupa (Philippines) Manchester (UK) Ypres (Belgium) Granollers (Spain) Halabla (Iraq) Biograd na Moru (Croatia) Des Moines (US) Montreal (Canada) 3) Secretariat Santos (Brazil) Wellington (New Zealand) Sarajevo (Bosnia and Herzegovina) Bangkok (Thailand) Cartago (Costa Rica) Tehran (Iran) Grigny (France) Cervia (Italy) Evora (Portugal) 'Underlined are Lead Cities in charge of their regional chapter: 19 cities Address : c/o Hiroshima Peace Culture Foundation 1-5 Nakajima-cho, Naka-ku, Hiroshima 730-0811 JAPAN E-mail : mayorcon@pcf.city.hiroshima.jp Website : www.mayorsforpeace.org 4. How to Join 1) Registration Process i. If your city/municipality would like to join us, please send a "Registration Form" to the Secretariat. ii. The Secretariat registers its new member cities once a month (around the 20th). iii. Date of affiliation is the 1st day of the month following the date registration procedures are completed by the Secretariat. "Certification of Membership" will be sent out to newly affiliated cities after the date of affiliation. 2) Membership Fee 2,000 yen/year 3) Member Cities' Activities (Examples) i. Promote the petition drive calling for all states to join the Treaty on the Prohibition of Nuclear Weapons as soon as possible ii. Hold peace -related events such as the Mayors for Peace Atomic Bomb Poster Exhibition and share re po rts iii. Invite mayors of your sister cities and neighboring cities who are not yet members to join Mayors for Peace iv. Attend the General Conference 'Please see "Peace -Related Activities Offered to Members of Mayors for Peace" for more activities that member cities will get the opportunity to participate in. 5. Conferences 1) General Conference Mayors for Peace holds a General Conference once every four years in principle. Hosted alternately between Hiroshima and Nagasaki, the General Conference is an opportunity for member cities to decide and adopt agenda items significant to the organization. 2) Executive Conference Mayors for Peace holds an Executive Conference generally once every two years in one of the executive cities, where executives discuss future initiatives and plans for the next General Conference. 10th General Conference (October 2022, Hiroshima) 6. Vision for Peaceful Transformation to a Sustainable World (PX Vision) - Peacebuilding by Cities for Disarmament and Common Security - 1) Outline In order to achieve a world in which all people can perpetually benefit from peace by realizing the total elimination of nuclear weapons and by attaining and maintaining peaceful coexistence between the whole of humanity, subsequent to the 2020 Vision, Mayors for Peace adopted the Vision for Peaceful Transformation to a Sustainable World (PX Vision): Peacebuilding by Cities for Disarmament and Common Security at the 12th Executive Conference in July 2021. Based on this, we build cities where citizens act with a strong sense of solidarity for the ultimate goal of realizing lasting world peace. 2) Initiatives For cities to ensure the safety and security of their citizens from the great threat of nuclear weapons and to attain and maintain peaceful coexistence between the whole of humanity, under three objectives set forth in the Vision, Mayors for Peace member cities implement the initiatives outlined in the Mayors for Peace Action Plan (2021 — 2025) to promote peacebuilding by cities. Lasting World Peace Action Plan 1. Sharing in the hibakusha's (�2. Contribute to a sustainable Earth and earnest wishes `, society: Promoting the SDGs 3. Foster and expand international public support 4. Promote sustainable development of '1 Mayors for Peace as an organization [Main Initiatives] 1. Appeal to the UN and national governments 2. Mayors for Peace Atomic Bomb Poster Exhibition 3. Providing opportunities to hear hibakusha's testimonies 4. Distribute and nurture seeds from atomic bomb survivor trees (hibaku trees) 5. Children's Art Competition "Peaceful Towns" 6. Peace Education Webinar 7. Collaboration with member cities Speech by the President at the second Meeting of States Parties to the Treaty on the Prohibition of Nuclear Weapons (November 2023, New York) Presentation by Mayors for Peace youths at the Mayors for Peace Youth Forum held in UNOG (August 2023, Vienna) Petition Drive by the President and high school students in the street (August 2022, Hiroshima) Meeting with UN Secretary -General Guterres (November 2023, New York) "Photo provided by: UN / Evan Schneider" Planting ceremony of a second generation atomic bomb survivor trees seedling by a member city (March 2024, Obu) Presenting signatures to the representatives of UN by high school students participating in the petition drive (July 2023, Vienna) Mayors for Peace Meeting with national government representatives (November 2023, New York) Holding a Peace Education Webinar (February 2024, Hiroshima) Holding the Mayors for Peace Atomic Bomb Poster Exhibition by a member city (August 2023, Kadogawa) Secretariat c/o Hiroshima Peace Culture Foundation, 1-5 Nakajima-cho, Naka-ku, Hiroshima 730-0811 JAPAN E-mail: mayorcon@pcf.city.hiroshima.jp Website: www.mayorsforpeace.org � Peace -Related Activities Offered to Members of Mayors for Peace Upon joining Mayors for Peace, your city will have the opportunity to participate in activities and programs which reflect the ultimate goal of the Mayors for Peace Action Plan: lasting world peace. We hope you will j oin us and that together, we will make significant strides towards realizing our goal. Below please find a list of activities which we offer to our member cities: 1. Seeds from Atomic Bomb Survivor Trees Mayors for Peace distributes seeds from trees that survived the atomic bombings to all member cities who wish to receive them. It is our hope that by taking care of these trees, which serve as symbols of peace, member cities can foster the ideals of peace amongst their citizens. Seeds are provided free of charge. 2. Children's Art Competitions Based on the art prompt "Peaceful Towns", Mayors for Peace has held an art competition for children ages 6 to 15 in member cities since 2018 with the aim of furthering the promotion of peace education in younger generations around the world. 3. Atomic Bomb Poster Exhibitions Mayors for Peace calls on member cities to hold exhibitions of Hiroshima -Nagasaki Atomic Bomb Posters and other related materials to foster a deepened understanding of the realities of the atomic bombings and strengthen the resolve towards nuclear abolition among their citizens. Posters are available in: Japanese, English, German, French, r �� Russian, Dutch, Spanish, Catalan, and Portuguese Posters are provided free of charge (files can be downloaded from the Mayors for Peace website). 4. Online Hibakusha Testimonies By request, Mayors for Peace can help connect venues in member cities to the Hiroshima Peace Memorial Museum so they can experience online hibakusha testimonies. Available free of charge. 5. Peace Education Webinar Mayors for Peace holds a Peace Education Webinar annually with the aim of stimulating youth -led peace activities in member cities. This webinar provides an opportunity for young leaders involved in peace activities to share information and engage in dialogue. 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