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06/14/2023 - PacketPort Orchard Council Finance Committee June 14, 2023 3:00 pm Zoom Link https://us02web.zoom. us/j/86724216499 US: +12532158782„ 89264626739# or +12532050468„ 89264626739# 1) Finance Department Finance Director, Noah Crocker a. Sales Tax & REET Revenue Report b. Preliminary Treasurers Report — Funds, accounts 2) Salary Survey- Comparable Discussion 3) 2023-2024 Budget Amendment No. 1 4) City Hall Finance Plan a. Project Update b. Debt Payments c. Reimbursement Resolution 5) Procurement Policy -Change Order 6) Pronoun changes in municipal code Other Items to come before the Committee. Schedule Next Meeting Date Role of the Finance Committee HR Director, Debbie Lund Finance Director, Noah Crocker Finance Director, Noah Crocker City Attorney, Charlotte Archer HR Director, Debbie Lund The finance committee provides oversight of city budgeting, financial planning, and financial reporting. The committee recommends long-range financial goals along with funding strategies for the operating and capital budgets. Human resource issues requiring policy direction are brought before the committee. The committee serves as the advisory forum for transportation and street maintenance funding, and funding relating to the transportation benefit district. Sales Tax Collections Summary of Budget to 2022 Actuals 2023 2024 Biennial Budget Actual 5,340,000 6,565,000 6,895,000 13,460,000 7,783,763 3,060,994 - 3,060,994 Over/Under $ 2,443,763 1 $ (3,504,006) $ (6,895,000) $ (10,399,006) Actuals 2022 2023 2024 Biennial January February March April May June July August September October November December $ 543,145 626,678 524,545 548,118 665,944 682,922 668,890 742,304 707,709 693,521 730,655 649,332 $ 656,711 684,990 572,419 539,880 606,994 1 $ 656,711 $ 684,990 $ 572,419 $ 539,880 $ 606,994 $ - $ $ $ $ $ $ Total $ 7,783,763 $ 3,060,994 $ $ 3,060,994 Percentage of Biennial Budget Received 23% Actuals Year over Year % Change Change $ 113,566 20.91% $ 58,312 9.30% $ 47,874 9.13% $ (8,237) -1.50% $ (58,950) -8.85% $ 152,564 Real Estate Excise Tax (REET) Collections Summary of Budget to Actuals 2022 2023 2024 Biennial Budget Actual $ 1,808,000 $ 1,945,903 800,000 $ 800,000 716,952 - $ 1,600,000 $ 716,952 Over/Under $ 137,903 1 $ (83,048) $ (800,000) $ (883,048) 105% Actuals 2022 2023 2024 Biennial January February March April May June July August September October November December $ 82,213 166,226 204,469 126,410 151,824 190,761 249,922 172,743 181,406 151,035 121,635 147,258 $ 81,265 137,211 158,612 150,287 189,577 1 $ 81,265 $ 137,211 $ 158,612 $ 150,287 $ 189,577 $ - $ $ $ $ $ $ Total $ 1,945,903 $ 716,952 $ $ 716,952 Percentage of Biennial Budget Received 45% Actuals Year over Year % Change Change $ (948) -1.15% $ (29,015) -17.46% $ (45,857) -22.43% $ 23,877 18.89% $ 37,753 24.87% $ (14,191) Budget 2023 estimated Budget vs Actual % based on Syr avg (Over/Under) Over/Under $ 491,484 $ 165,226 33.6% $ 591,156 $ 93,834 15.9% $ 456,559 $ 115,860 25.4% $ 439,218 $ 100,662 22.9% $ 543,259 $ 63,735 11.7% $ 539,409 #VALUE! $ 582,239 #VALUE! $ 611,427 #VALUE! $ 587,557 #VALUE! $ 577,620 #VALUE! $ 600,359 #VALUE! $ 544,712 #VALUE! $ 6,565,000 $ 539,317 21.39% Budget 2023 estimated Budget vs Actual % based on Syr avg (Over/Under) Over/Under $ 40,204 $ 41,062 102.1% $ 61,301 $ 75,910 123.8% $ 67,397 $ 91,215 135.3% $ 59,145 $ 91,141 154.1% $ 54,140 $ 135,437 250.2% $ 69,833 #VALUE! $ 115,834 #VALUE! $ 66,740 #VALUE! $ 77,911 #VALUE! $ 64,260 #VALUE! $ 47,001 #VALUE! $ 76,232 #VALUE! $ 800,000 $ 434,765 154% City of Port Orchard - 2023 Salary Study Proposed Comparables Services County Jurisdiction 2022 PopulationType Estimate Utilities Police Total Budget FTEs Kitsap Port Orchard 16,400 Mayor Y Y $ 94,697,000 97 50% Above 8,200 $ 47,348,500 48.5 50% Below 24,600 $ 142,045,500 145.5 Whatcom Lynden 16,150 Mayor Y Y $ 95,478,000 103 Pierce Bonney Lake 22,990 Mayor Y Y $ 92,539,000 152 Snohomish Monroe 19,700 Mayor Y Y $ 99,040,000 120 Pierce Gig Harbor 12,540 Mayor Y Y $ 89,308,500 135 King Enumclaw 12,910 Mayor Y Y $ 86,839,000 115 Grays Harbor Aberdeen 17,040 Mayor Y Y $ 103,618,000 187 Snohomish Arlington 21,260 Mayor Y Y $ 78,620,000 144 King Snoqualmie 14,490 Mayor Y Y $ 74,347,000 106 Whatcom Ferndale 15,970 Mayor Y Y $ 64,744,000 77 Skagit jAnacortes 17,880 Mayor Y Y $ 128,569,000 266 Sources: WA State OFM April 1, 2022 Population Estimates; DOR 2022 Table 30 Senior Taxing Districts Levies Due in 2022; City Budgets Cabot Dow Associates May 16, 2023 ALW. City of Port Orchard 216 Prospect Street, Port Orchard, WA 98366 (36o) 876-440 7 • FAX (36o) 895-9029 Agenda Staff Report Agenda Item No.: Business Item Meeting Date: June 27, 20 Subject: Ordinance No. oXX- 23, Prepared by: Amending the 2023-2024 Biennial Budget & Salary Atty Routing No: Table Atty Review Date: Noah D. Crocker Finance Director Summary: The City Budget is written to capture revenue and expenses over the fiscal period. During the biennial period, changes to the budget in both revenue and expenditures need to be recognized by Budget Amendment. Exhibit A of the 2023-2024 Biennial Budget identifies the Personnel positions of the City as well as pay ranges. By this Ordinance No. oXX-23, the City Council would amend Exhibit A of the 2023 - 2024 Biennial Budget, as adopted by Ordinance No. 046-22, to add a new position and modify existing positions. The proposed budget amendment is intended to amend Exhibit A to create 1 FTE for Code Enforcement I Position as well as reduce the Code Enforcement II positions to 1 FTE. There is no net impact to the number of FTE's approved in the original 2023-2024 Budget. This Ordinance will provide the following adjustments: 1) All Funds: Adjust all Beginning Fund Balances to reflect actual beginning. 2) All Funds: Adjust interest. 3) All Funds: Adjust 2024 Ending Fund Balances to reflect proposed amendment. Highlighted Funds 4) Fund ooi: Total Revenue and Expense Adjustment $7,864,100 a. Increase revenue from anticipated grant funding by $44,300 for community events center b. Increase transfers in from fund 302 for cash flow funding for City hall project Of $5 million c.Adjust activity to reflect the Roland Property purchase net reduction of $200,000 d. Increase transfers out to fund 302 for cash flow funding for City hall project of $5 million e. Increase expenditure and transfer authority by an additional $3o1,800 for the Community Events Center project including Orchard Plaza f. Increase transfers out to fund 302 for Givens Park Project of $45,500 g. Increase transfers out to fund 302 for Schedule D PW Shop of $50,000 5) Fund 002: Total Revenue and Expense Adjustment $1,826,400 a. Increase Revenue to reflect a $326,000 TIB grant over Old Clifton Overlay Project Page 2 of 8 6) Fund log: Total Revenue and Expense Adjustment $803,700 a. Reduce REET 1 purchases to reflect some acquisition activities which occurred in 2022 by ~$138,000 7) Fundill: Total Revenue and Expense Adjustment $468,1oo a. Increase transfers out from Park Impact fee's to Splash Pad of $250,000 b. Increase transfers out from Park Impact fee's to pay for the Community Events Center Project include Orchard Plaza Design $425,900 8) Fund 302: Total Revenue and Expense Adjustment $16,431,100 a. Increase Revenue for City Hall Remodel Project by $10,362,000 from bond proceeds b. Increase Revenue for Givens Park by $326,400 c. Reduce revenue for Community Events Center by $281,300 d. Increase Transfers in for City Hall Project by $5,000,000 for cash flow e. Increase Transfers in for Splash Pad Project by $250,000 f. Increase Transfers in for Givens Park $45,500 g. Increase Transfers in to fund 302 for Schedule D PW Shop of $50,000 h. Increase transfers in from fund ill -Parks Impact Fee of $142,000 for Port Orchard Plaza Design i. Reduce Transfers in for Community Events Center by $66,1oo j. Increase Expenditure authority for Splash Pad by $250,000 k. Increase Expenditure authority for Roland Purchase by $300,000 1. Increase Expenditure authority for Givens Park by $326,400 m. Increase Expenditures Authority for Schedule D PW Shop Of $50,000 n. Increase transfers out to Fund oo1 for $5 million need for cash flow o. Reduce Expenditure authority for Community Events Center by $347,400 g) Fund 304: Total Revenue and Expense Adjustment $1,181,goo a. Reduce Revenue and Expenditure authority to reflect TIP 1.1 Bay Street Pedestrian Pathway purchases which occurred in 2022 by $138,000 b. Reduce Expenditure authority by $18k for TIP 1.8 Bethel- Blueberry/Salmonberry for activity occurred in 2022 1o) Fund 421: Total Revenue and Expense Adjustment $314,300 a. Reduce Transfers out by $400,000 for Roland Purchase the transfer occurred in 2022 11) Fund 423: Total Revenue and Expense Adjustment $401,300 a. Reduce Transfers In and Expenditures related to the Roland Purchase 12) Fund 431: Total Revenue and Expense Adjustment $1,885,goo a. Increase Expenditure authority by $go,000 for a Sewer Rate Study Recommendation: The Finance Director recommends adoption of Ordinance No. OOX-23 including amending Exhibit A of the 2023-2024 Biennial Budget. Relationship to Comprehensive Plan: Page 3 of 8 Motion for consideration: I move to adopt Ordinance No. oXX-23, amending Exhibit A to Ordinance No. 046-22, the 2023 — 2024 Biennial Budgets for the City of Port Orchard. Fiscal Impact: Increase Revenue and Expense Budget Authority By $35,533,400 2023-2024 Original Biennial Budget 2023-2024 Adjustments 2023-2024 Amended Biennial Budget • Beginning Fund Balance $ 56,056,392 $ 15,071,620 $ 71,128,012 Revenue $ 133,338,008 $ 20,461,780 $ 153,799,788 Expense $ 127,103,735 $ 20,809,306 $ 147,913,041 Ending Fund Balance $ 62,290,665 $ 14,724,094 $ 77,014,759 2023-2024 Original Biennial Budget 2023-2024 Adjustments 2023-2024 Amended Biennial Budget Total Revenue 17 $ 189,394,400 $ 35,533,400 $ 224,927,800 Total Expense $ 189,394,400 $ 35,533,400 $ 224,927,800 Governmental• (Operating, Stabilization,• Debt Service) 2023-2024 Original 2023-2024 2023-2024 Amended Fund: 001-Current Expense Biennial Budget Adjustments Biennial Budget Beginning Fund Balance $ 11,500,000 $ 2,819,782 $ 14,319,782 Revenue $ 25,542,700 $ 5,044,318 $ 30,587,018 Expense $ 34,850,943 $ 5,055,300 $ 39,906,243 Ending Fund Balance $ 2,191,757 $ 2,808,800 $ 5,000,557 2023-2024 Original 2023-2024 2023-2024 Amended Fund: 002 -City Street Fund Biennial Budget Adjustments Biennial Budget Beginning Fund Balance $ 1,270,792 $ 1,500,376 $ 2,771,168 Revenue $ 5,284,508 $ 326,024 $ 5,610,532 Expense $ 6,148,192 $ - $ 6,148,192 Ending Fund Balance $ 407,108 $ 1,826,400 $ 2,233,508 2023-2024 Original 2023-2024 2023-2024 Amended Fund: 003 -Stabilization Fund Biennial Budget $ Adjustments 30,460 $ Biennial Budget 2,740,960 Beginning Fund Balance $ 2,710,500 Revenue $ 180,000 $ 40 $ 180,040 Expense $ - $ - $ - Ending Fund Balance $ 2,890,500 $ 30,500 $ 2,921,000 Page 4 of 8 2023-2024 Original 2023-2024 2023-2024 Amended Fund: 103 -Criminal Justice Biennial Budget Adjustments Biennial Budget Beginning Fund Balance $ 390,000 $ 257,725 $ 647,725 Revenue $ 775,000 $ 75 $ 775,075 Expense $ 1,125,000 $ - $ 1,125,000 Ending Fund Balance $ 40,000 $ 257,800 $ 297,800 2023-2024 Original 2023-2024 2023-2024 Amended Fund: 104 -Special Investigative Unit Biennial Budget Adjustments Biennial Budget Beginning Fund Balance $ 94,000 $ 4,895 $ 98,895 Revenue $ 8,000 $ 5 $ 8,005 Expense $ 8,000 $ - $ 8,000 Ending Fund Balance $ 94,000 $ 4,900 $ 98,900 2023-2024 Original 2023-2024 2023-2024 Amended Fund: 107 -Community Events Biennial Budget Adjustments Biennial Budget Beginning Fund Balance $ 236,200 $ 85,580 $ 321,780 Revenue $ 227,400 $ 20 $ 227,420 Expense $ 227,400 $ - $ 227,400 Ending Fund Balance $ 236,200 $ 85,600 $ 321,800 2023-2024 Original 2023-2024 2023-2024 Amended Fund: 108 -Paths &Trails Biennial Budget Adjustments Biennial Budget Beginning Fund Balance $ 13,300 $ 484 $ 13,784 Revenue $ 2,000 $ 16 $ 2,016 Expense $ - $ - $ - Ending Fund Balance $ 15,300 $ 500 $ 15,800 2023-2024 Original 2023-2024 2023-2024 Amended Fund: 109 -Real Estate Excise Tax Biennial Budget Adjustments Biennial Budget Beginning Fund Balance $ 3,379,100 $ 803,607 $ 4,182,707 Revenue $ 1,600,000 $ 93 $ 1,600,093 Expense $ 4,152,500 $ (138,015) $ 4,014,485 Ending Fund Balance $ 826,600 $ 941,715 $ 1,768,315 2023-2024 Original 2023-2024 2023-2024 Amended Fund: 111-Impact Mitigation Fee Biennial Budget Adjustments Biennial Budget Beginning Fund Balance $ 4,836,500 $ 468,055 $ 5,304,555 Revenue $ 10,877,200 $ 45 $ 10,877,245 Expense $ 4,798,600 $ 675,900 $ 5,474,500 Ending Fund Balance $ 10,915,100 $ (207,800) $ 10,707,300 Page 5 of 8 Fund: 206 -Bond Redemption Fund 2023-2024 Original Biennial Budget 2023-2024 Adjustments 2023-2024 Amended Biennial Budget Beginning Fund Balance $ - $ - $ - Revenue $ 598,400 $ - $ 598,400 Expense $ 598,400 $ - $ 598,400 Ending Fund Balance $ - $ - $ - 2023-2024 Original 2023-2024 2023-2024 Amended Fund: 302 - Capital Construction Biennial Budget Adjustments Biennial Budget Beginning Fund Balance $ 245,100 $ 302,531 $ 547,631 Revenue $ 2,178,400 $ 16,128,569 $ 18,306,969 Expense $ 2,178,400 $ 16,083,000 $ 18,261,400 Ending Fund Balance $ 245,100 $ 348,100 $ 593,200 2023-2024 Original 2023-2024 2023-2024 Amended Fund: 304 -Street Capital Projects Biennial Budget Adjustments Biennial Budget Beginning Fund Balance $ 979,200 $ 1,319,851 $ 2,299,051 Revenue $ 12,718,900 $ (137,951) $ 12,580,949 Expense $ 12,385,700 $ (156,880) $ 12,228,820 Ending Fund Balance $ 1,312,400 $ 1,338,780 $ 2,651,180 Page 6 of 8 2023-2024 Original 2023-2024 2023-2024 Amended Fund: 412 Water Stabilization Biennial Budget Adjustments Biennial Budget Beginning Fund Balance $ 955,500 $ 10,906 $ 966,406 Revenue $ - $ 94 $ 94 Expense $ - $ - $ - Ending Fund Balance $ 955,500 $ 11,000 $ 966,500 2023-2024 Original 2023-2024 2023-2024 Amended Fund: 413 -Water Capital Biennial Budget Adjustments Biennial Budget Beginning Fund Balance $ 3,821,600 $ 3,737,341 $ 7,558,941 Revenue $ 14,861,800 $ 59 $ 14,861,859 Expense $ 11,424,000 $ - $ 11,424,000 Ending Fund Balance $ 7,259,400 $ 3,737,400 $ 10,996,800 2023-2024 Original 2023-2024 2023-2024 Amended Fund: 414 -Water Debt Service Biennial Budget Adjustments Biennial Budget Beginning Fund Balance $ - $ - $ - Revenue $ 1,502,600 $ - $ 1,502,600 Expense $ 1,502,600 $ - $ 1,502,600 Ending Fund Balance $ - $ - $ - Page 7 of 8 Fund: 421 -Storm Drainage Utility 2023-2024 Original Biennial Budget 2023-2024 Adjustments 2023-2024 Amended Biennial Budget Beginning Fund Balance $ 1,725,100 $ (314,382) $ 1,410,718 Revenue $ 3,490,100 $ 82 $ 3,490,182 Expense $ 4,905,504 $ (400,000) $ 4,505,504 Ending Fund Balance $ 309,696 $ 85,700 $ 395,396 2023-2024 Original 2023-2024 2023-2024 Amended Fund: 422 -Storm Drainage Stabilization Biennial Budget Adjustments Biennial Budget Beginning Fund Balance $ 536,800 $ 6,166 $ 542,966 Revenue $ - $ 34 $ 34 Expense $ - $ - $ - Ending Fund Balance $ 536,800 $ 6,200 $ 543,000 2023-2024 Original 2023-2024 2023-2024 Amended Fund: 423 -Storm Drainage Capital Facil Biennial Budget Adjustments Biennial Budget Beginning Fund Balance $ 94,500 $ 498,637 $ 593,137 Revenue $ 1,200,000 $ (899,937) $ 300,063 Expense $ 1,200,000 $ (400,000) $ 800,000 Ending Fund Balance $ 94,500 $ (1,300) $ 93,200 2023-2024 Original 2023-2024 2023-2024 Amended Fund: 424 -Storm Drainage Debt Service Biennial Budget Adjustments Biennial Budget Beginning Fund Balance $ - $ - $ - Revenue $ 355,300 $ - $ 355,300 Expense $ 355,300 $ - $ 355,300 Ending Fund Balance $ - $ - $ - Page 8 of 8 Fund: 431 -Sewer Operating 2023-2024 Original Biennial Budget 2023-2024 Adjustments 2023-2024 Amended Biennial Budget Beginning Fund Balance $ 4,022,800 $ 1,885,875 $ 5,908,675 Revenue $ 11,397,400 $ 25 $ 11,397,425 Expense $ 11,019,664 $ 90,000 $ 11,109,664 Ending Fund Balance $ 4,400,536 $ 1,795,900 $ 6,196,436 2023-2024 Original 2023-2024 2023-2024 Amended Fund: 432 -Sewer Stabilization Biennial Budget Adjustments Biennial Budget Beginning Fund Balance $ 1,430,000 $ 16,270 $ 1,446,270 Revenue $ - $ 30 $ 30 Expense $ - $ - $ - Ending Fund Balance $ 1,430,000 $ 16,300 $ 1,446,300 2023-2024 Original 2023-2024 2023-2024 Amended Fund: 433 -Sewer Capital Biennial Budget Adjustments Biennial Budget Beginning Fund Balance $ 5,355,800 $ 426,956 $ 5,782,756 Revenue $ 23,668,400 $ 44 $ 23,668,444 Expense $ 15,001,900 $ - $ 15,001,900 Ending Fund Balance $ 14,022,300 $ 427,000 $ 14,449,300 2023-2024 Original 2023-2024 2023-2024 Amended Fund: 434 -Sewer Debt Service Biennial Budget Adjustments Biennial Budget Beginning Fund Balance $ 550,000 $ 8,878 $ 558,878 Revenue $ 977,600 $ 22 $ 977,622 Expense $ 427,600 $ - $ 427,600 Ending Fund Balance $ 1,100,000 $ 8,900 $ 1,108,900 2023-2024 Original 2023-2024 2023-2024 Amended Fund: 500 -Equipment Rental and Revolving Biennial Budget Adjustments Biennial Budget Beginning Fund Balance $ 3,748,900 $ 241,182 $ 3,990,082 Revenue $ 3,179,300 $ 18 $ 3,179,318 Expense $ 4,866,300 $ - $ 4,866,300 Ending Fund Balance $ 2,061,900 $ 241,200 $ 2,303,100 2023-2024 Original 2023-2024 2023-2024 Amended Fund: 632 -Wastewater Treatment Facil Fee Biennial Budget Adjustments Biennial Budget Beginning Fund Balance $ 5,135,900 $ 146,955 $ 5,282,855 Revenue $ 5,052,000 $ 45 $ 5,052,045 Expense $ 2,252,000 $ - $ 2,252,000 Ending Fund Balance $ 7,935,900 $ 147,000 $ 8,082,900 Alternatives: Do not authorize and provide alternative guidance Attachments: Ordinance No. OXX-23 ORDINANCE No. **-23 AN ORDINANCE OF THE CITY OF PORT ORCHARD, WASHINGTON, AMENDING THE 2023-2024 BIENNIAL BUDGET AS ADOPTED BY ORDINANCE NO. 046-22, TO RECOGNIZE EXPENDITURES AND REVENUES NOT ANTICIPATED AT THE TIME OF THE ADOPTION OF THE 2023-2024 BIENNIAL BUDGET; PROVIDING FOR TRANSMITTAL TO STATE; PROVIDING FOR PUBLICATION; AND SETTING AN EFFECTIVE DATE. WHEREAS, the City of Port Orchard adopted its 2023 — 2024 Biennial Budget by Ordinance No.046-22; and WHEREAS, the City desires to keep current on budget amendments; and WHEREAS, it is necessary to consider adjustments to accounts and/or funds by means of appropriation adjustments that could not have been anticipated at the time of passage of the 2023 — 2024 Biennial Budget; and WHEREAS, the City Council Approved Ordinance 053-22 creating i.o FTE for a Code Enforcement I position and reducing Code Enforcement Officer II to i.o FTE which is now reflected in the 2023-2024 Budget Salary Table; and WHEREAS, the city will adjust all beginning fund balances to reflect actual fund balances as of 01.01.2023; and WHEREAS, the City will adjust Fund ool-the Current Expense fund- to reflect additional expenditure and revenue activity related to park property purchase, City Hall project cashflow funding, additional funding for the Community Events as well as Givens Park and the Public Works Shop projects; and WHEREAS, the City will adjust Fund 002-City Street to reflect accept TIB grant funding for the Old Clifton Overlay Project; and WHEREAS, the City will adjust Fund ill -Impact Fee Fund to reflect additional spending for the Splash Pad, Community Events Center and Orchard Plaza from Park Impact fees; and WHEREAS, the City will adjust Fund 302 to reflect additional expenditure and revenue activity related to park property purchase, City Hall project, the Community Events Center, Port Orchard Plaza, Givens Park, and the Public Works Shop projects; and WHEREAS, the City will adjust Fund 304 to reflect expenditure and revenue activity related to TIP 1.1 and TIP 1.8; and WHEREAS, the City will adjust Fund 421 to reflect activity related to the Storm Drainage Property purchase; and WHEREAS, the City will adjust Fund 423 to reflect activity related to the Storm Drainage Property purchase; and WHEREAS, the City will adjust Fund 431 to reflect activity additional expenditure authority for a Sewer Rate Study; and WHEREAS, the City will adjust all 2024 ending fund balances to reflect the impact of the proposed budget amendments; and WHEREAS, the City Council has considered the proposed budget amendments and finds that amendments authorized by this Ordinance are consistent with applicable laws and financial policies, and further the public's health, safety and welfare; NOW, THEREFORE: THE CITY COUNCIL OF THE CITY OF PORT ORCHARD, WASHINGTON, DO ORDAIN AS FOLLOWS: SECTION 1. Exhibit A to the 2023 - 2024 Biennial Budget is amended as shown on the Exhibit A attached hereto. 2023-2024 Biennial Budget Fund No. I Fund Name IType I Ordinance-046-22 I Adjustment I Ordinance-XXX-23 001 Current Expense Fund Revenue $ 37,042,700 $ 7,864,100 $ 44,906,800 Expense $ 37,042,700 $ 7,864,100 $ 44,906,800 002 City Street Revenue $ 6,555,300 $ 1,826,400 $ 8,381,700 Expense $ 6,555,300 $ 1,826,400 $ 8,381,700 003 Stabilization Revenue $ 2,890,500 $ 30,500 $ 2,921,000 Expense $ 2,890,500 $ 30,500 $ 2,921,000 103 Criminal Justice Revenue $ 1,165,000 $ 257,800 $ 1,422,800 Expense $ 1,165,000 $ 257,800 $ 1,422,800 104 Special Investigative Unit Revenue $ 102,000 $ 4,900 $ 106,900 Expense $ 102,000 $ 4,900 $ 106,900 107 Community Events Revenue $ 463,600 $ 85,600 $ 549,200 Expense $ 463,600 $ 85,600 $ 549,200 108 Paths & Trails Revenue $ 15,300 $ 500 $ 15,800 Expense $ 15,300 $ 500 $ 15,800 109 Real Estate Excise Tax Revenue $ 4,979,100 $ 803,700 $ 5,782,800 Expense $ 4,979,100 $ 803,700 $ 5,782,800 111 Impact Fee Revenue $ 15,713,700 $ 468,100 $ 16,181,800 Expense $ 15,713,700 $ 468,100 $ 16,181,800 206 Bond Redemption Fund Revenue $ 598,400 $ - $ 598,400 Expense $ 598,400 $ - $ 598,400 302 Capital Construction Revenue $ 2,423,500 $ 16,431,100 $ 18,854,600 Expense $ 2,423,500 $ 16,431,100 $ 18,854,600 304 Street Capital Projects Revenue $ 13,698,100 $ 1,181,900 $ 14,880,000 Expense $ 13,698,100 $ 1,181,900 $ 14,880,000 411 Water - Operations Revenue $ 10,685,800 $ 813,500 $ 11,499,300 Expense $ 10,685,800 $ 813,500 $ 11,499,300 412 Water - Stabilization Revenue $ 955,500 $ 11,000 $ 966,500 Expense $ 955,500 $ 11,000 $ 966,500 413 Water - Capital Projects Revenue $ 18,683,400 $ 3,737,400 $ 22,420,800 Expense $ 18,683,400 $ 3,737,400 $ 22,420,800 414 Water - Debt Service Revenue $ 1,502,600 $ - $ 1,502,600 Expense $ 1,502,600 $ - $ 1,502,600 421 Storm Drainage -Operations Revenue $ 5,215,200 $ (314,300) $ 4,900,900 Expense $ 5,215,200 $ (314,300) $ 4,900,900 422 Storm Drainage -Stabilization Revenue $ 536,800 $ 6,200 $ 543,000 Expense $ 536,800 $ 6,200 $ 543,000 423 Storm Drainage -Capital Projects Revenue $ 1,294,500 $ (401,300) $ 893,200 Expense $ 1,294,500 $ (401,300) $ 893,200 424 Storm Drainage -Debt Service Revenue $ 355,300 $ - $ 355,300 Expense $ 355,300 $ - $ 355,300 431 Sewer -Operations Revenue $ 15,420,200 $ 1,885,900 $ 17,306,100 Expense $ 15,420,200 $ 1,885,900 $ 17,306,100 432 Sewer -Stabilization Revenue $ 1,430,000 $ 16,300 $ 1,446,300 Expense $ 1,430,000 $ 16,300 $ 1,446,300 433 Sewer - Capital Projects Revenue $ 29,024,200 $ 427,000 $ 29,451,200 Expense $ 29,024,200 $ 427,000 $ 29,451,200 434 Sewer - Debt Service Revenue $ 1,527,600 $ 8,900 $ 1,536,500 Expense $ 1,527,600 $ 8,900 $ 1,536,500 500 ER&R Revenue $ 6,928,200 $ 241,200 $ 7,169,400 Expense $ 6,928,200 $ 241,200 $ 7,169,400 632 Wastewater Treatment Facility Revenue $ 10,187,900 $ 147,000 $ 10,334,900 Expense $ 10,187,900 $ 147,000 $ 10,334,900 Grand Total Revenue 1 $ 189,394,400 $ 35,533,400 $ 224,927,800 Grand Total Expense $ 189,394,400 $ 35,533,400 $ 224,927,800 SECTION 2. Severability. If any section, 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 of constitutionality of any other section, sentence, clause or phrase of this ordinance. SECTION ,i. Corrections. Upon approval of the city attorney, the city clerk and the codifiers of this ordinance are authorized to make necessary technical corrections to this ordinance, including, without limitation, the correction of clerical errors; references to other local, state, or federal laws, codes, rules, or regulations; or section/subsection numbering. SECTION 4. This Ordinance shall be in full force and effect five (5) days after posting and publication as required by law. A summary of this Ordinance may be published in lieu of the entire ordinance, as authorized by State Law. PASSED by the City Council of the City of Port Orchard, APPROVED by the Mayor and attested by the Clerk in authentication of such passage this 27th day of June 2023. Rob Putaansuu, Mayor ATTEST: Brandy Wallace, MMC, City Clerk APPROVED AS TO FORM: Sponsored by: Charlie A. Archer, City Attorney PUBLISHED: EFFECTIVE DATE: John Clauson, Councilmember 6/12/2023 2:45 PM Personnel Position• Elected Officials Positions Wages Mayor 1 Annual 119,145.59 Council 7 Monthly 1,000 Total Elected 8.00 PositionsPersonnel City Clerk 1 48.87 56.66 Police Chief 1 72.73 84.33 Community Development Director 1 67.79 78.61 Finance Director 1 67.79 78.61 Human Resources Directo 1 1 50.77 58.88 Public Works Director 1 64.39 74.68 Total Mayoral Direct Reports 6.00 Deputy City Clerk 1 32.95 38.19 Human Resources Specialist 1 31.40 36.41 Total Administration 2.00 Deputy Finance Director 1 50.77 58.88 Accounting Assistant 1 1 25.54 29.64 Accounting Assistant II 4 29.72 34.46 Accounting Assistant III 2 34.65 40.20 Accounting Assistant III / IT Specialist 1 35.90 41.62 Information Technology Manager 1 55.71 64.60 IT Support Specialist 1 35.68 41.37 Total Finance/IT 11.00 Deputy Director Community Development 1 55.71 64.60 Permit Center Manager 1 38.15 44.24 Permit Tech 1 29.91 34.68 Permit Clerk 2 26.70 30.97 Permit Center Assistant 0.50 25.54 29.64 Senior Planner 2 43.31 50.22 Plans Examiner/Building Inspector II 1 40.88 47.41 Associate Planner 1 39.24 45.51 Assistant Planner 1 31.40 36.41 Building Inspector 1 1 36.85 42.73 Code Enforcement Officer 1 1 31.40 36.41 Code Enforcement Officer 11 1 1 35.90 41.62 Parking Enforcement Officer (2 PT) 1 28.35 32.88 Total Community Development 14.50 Municipal Court Judge 0.6 Annual 118,634.88 Municipal Court Administrator 1 50.77 58.88 Lead Clerk 1 30.64 36.62 Court Clerk 2 25.89 30.91 Total Judicial 4.60 Deputy Police Chief 1 63.37 73.51 Police Services Coordinator 1 34.47 41.17 Records Evidence Specialist 3.7 25.77 30.76 Sergeant 5 51.65 57.19 Patrol Officer 18 34.65 1 47.58 Total Police Department 28.70 6/12/2023 2:45 PM Personnel Position• Personnel PositionsFirst City Engineer 1 6 63.40 After 5 Yrs. 73.51 Assistant City Engineer 1 55.71 64.60 Operations Manager 1 48.87 56.66 Utility Manager 1 48.87 56.66 Utilities Compliance Specialist 1 35.90 41.62 Civil Engineer 1 1 39.24 45.51 Civil Engineer 11 1 46.65 54.10 Stormwater Program Manager 1 40.88 47.41 GIS Specialist/Development Review Assistant 1 40.88 47.41 Public Works Procurement Specialist 1 38.15 44.24 Project Coordinator/Inspector 1 39.24 45.51 Office Assistant II Public Works Foreman 1 1 26.70 38.38 30.97 fter 5 Yrs. 45.82 Mechanic 2 31.98 38.19 Electrician 1 33.92 40.51 Public Works Personnel 12 31.01 37.03 WA/SW/Storm Coordinators 3 33.33 1 39.79 Public Works Laborer 1 2 1 23.10 27.59 Total Public Works 33.00 Minimum Maximum Seasonal Public Works Hourly 16.22 21.63 Intern Hourly 16.22 21.63 Temporary Employee Hourly 16.22 21.63 6/12/2023 2:45 PM Personnel Position Listing Elected Officials Positions Mayor 1 Annual 119,145.59 Council 7 Monthly 1,000 Total Elected 8.00 PositionsPersonnel City Clerk 1 48.87 56.66 Police Chief 1 72.73 84.33 Community Development Director 1 67.79 78.61 Finance Director 1 67.79 78.61 Human Resources Director 1 50.77 58.88 Public Works Director 1 64.39 74.68 Total Mayoral Direct Reports 6.00 Deputy City Clerk 1 32.95 38.19 Human Resources Specialist 1 31.40 36.41 Office Assistant II 0 26.70 30.97 Total Administration 2.00 Deputy Finance Director 1 50.77 58.88 Accounting Assistant 1 1 25.54 29.64 Accounting Assistant II 4 29.72 34.46 Accounting Assistant III 2 34.65 40.20 Accounting Assistant III / IT Specialist 1 1 35.90 41.62 Information Technology Manager 1 55.71 64.60 IT Support Specialist 1 35.68 41.37 Total Finance/IT 11.00 Deputy Director Community Development 1 Permit Center Manager 1 Permit Tech 1 Permit Clerk 2 55.71 64.60 38.15 44.24 29.91 34.68 26.70 30.97 Permit Center Assistant 0.50 25.54 29.64 Senior Planner 2 43.31 50.22 Plans Examiner/Building Inspector 11 1 40.88 47.41 Associate Planner 1 39.24 45.51 Assistant Planner 1 31.40 36.41 Building Official 0 46.65 54.10 Building Inspector 1 1 36.85 42.73 Code Enforcement Officer 2 35.90 41.62 Parking Enforcement Officer (2 PT) 1 28.35 32.88 Total Community Development 14.50 Municipal Court Judge 0.6 Annual 118,634.88 Municipal Court Administrator 1 50.77 58.88 Lead Clerk 1 30.64 36.62 Court Clerk 2 25.89 30.91 Total Judicial 4.60 Deputy Police Chief 1 63.37 73.51 Police Services Coordinator 1 34.47 41.17 Records Evidence Specialist 3.7 25.77 30.76 Sergeant 5 51.65 57.19 Patrol Officer 18 34.65 47.58 Patrol Officer 0 34.65 47.58 Total Police Department 28.70 6/12/2023 2:45 PM VW rersonnel Position• City Engineer 1 63.40 73.51 Assistant City Engineer 1 55.71 64.60 Operations Manager 1 48.87 56.66 Utility Manager 1 48.87 56.66 Utilities Compliance Specialist 1 35.90 41.62 Civil Engineer 1 1 39.24 45.51 Civil Engineer II 1 46.65 54.10 Stormwater Program Manager GIS Specialist/Development Review Assistant Public Works Procurement Specialist 1 40.88 47.41 1 40.88 47.41 1 38.15 44.24 Project Coordinator/Inspector 1 39.24 45.51 Office Assistant II 1 26.70 30.97 Public Works Foreman 1 38.38 45.82 Mechanic 2 31.98 38.19 Electrician 1 33.92 40.51 Public Works Personnel 12 31.01 37.03 WA/SW/Storm Coordinators 3 33.33 39.79 Public Works Laborer 2 23.10 27.59 Total Public Works 33.00 Minimum Maximum Seasonal Public Works Hourly 16.22 21.63 Intern Hourly 16.22 21.63 Temporary Employee Hourly 16.22 21.63 2023-2024 Original Biennial Budget 2023-2024 Adjustments 2023-2024 Amended Biennial Budget MBeginning Fund Balance $ 56,056,392 $ 15,071,620 $ 71,128,012 Revenue $ 133,338,008 $ 20,461,780 $ 153,799,788 Expense $ 127,103,735 $ 20,809,306 $ 147,913,041 Ending Fund Balance $ 62,290,665 $ 14,724,094 $ 77,014,759 2023-2024 Original Biennial Budget 2023-2024 Adjustments 2023-2024 Amended Biennial Budget Total Revenue $ 189,394,400 $ 35,533,400 $ 224,927,800 Total Expense $ 189,394,400 $ 35,533,400 $ 224,927,800 Governmental• •Stabilization,•ecial, 2023-2024 Original Debt 2023-2024 2023-2024 Amended Fund: 001-Current Expense Biennial Budget Adjustments Biennial Budget Beginning Fund Balance $ 11,500,000 $ 2,819,782 $ 14,319,782 Revenue $ 25,542,700 $ 5,044,318 $ 30,587,018 Expense $ 34,850,943 $ 5,055,300 $ 39,906,243 Ending Fund Balance $ 2,191,757 $ 2,808,800 $ 5,000,557 Fund: 002 -City Street Fund 2023-2024 Original 2023-2024 2023-2024 Amended Biennial Budget Adjustments Biennial Budget Beginning Fund Balance $ 1,270,792 $ 1,500,376 $ 2,771,168 Revenue $ 5,284,508 $ 326,024 $ 5,610,532 Expense $ 6,148,192 $ - $ 6,148,192 Ending Fund Balance $ 407,108 $ 1,826,400 $ 2,233,508 2023-2024 Original 2023-2024 2023-2024 Amended Fund: 003 -Stabilization Fund Biennial Budget $ Adjustments 30,460 $ Biennial Budget 2,740,960 Beginning Fund Balance $ 2,710,500 Revenue $ 180,000 $ 40 $ 180,040 Expense $ - $ - $ - Ending Fund Balance $ 2,890,500 $ 30,500 $ 2,921,000 Fund: 103 -Criminal Justice 2023-2024 Original 2023-2024 2023-2024 Amended Biennial Budget Adjustments Biennial Budget Beginning Fund Balance $ 390,000 $ 257,725 $ 647,725 Revenue $ 775,000 $ 75 $ 775,075 Expense $ 1,125,000 $ - $ 1,125,000 Ending Fund Balance $ 40,000 $ 257,800 $ 297,800 2023-2024 Original 2023-2024 2023-2024 Amended Fund: 104 -Special Investigative Unit Biennial Budget Adjustments Biennial Budget Beginning Fund Balance $ 94,000 $ 4,895 $ 98,895 Revenue $ 8,000 $ 5 $ 8,005 Expense $ 8,000 $ - $ 8,000 Ending Fund Balance $ 94,000 $ 4,900 $ 98,900 Fund: 107 -Community Events 2023-2024 Original 2023-2024 2023-2024 Amended Biennial Budget Adjustments Biennial Budget Beginning Fund Balance $ 236,200 $ 85,580 $ 321,780 Revenue $ 227,400 $ 20 $ 227,420 Expense $ 227,400 $ - $ 227,400 Ending Fund Balance $ 236,200 $ 85,600 $ 321,800 2023-2024 Original 2023-2024 2023-2024 Amended Fund: 108 - Paths & Trails Biennial Budget Adjustments Biennial Budget Beginning Fund Balance $ 13,300 $ 484 $ 13,784 Revenue $ 2,000 $ 16 $ 2,016 Expense $ - $ - $ - Ending Fund Balance $ 15,300 $ 500 $ 15,800 Fund: 109 -Real Estate Excise Tax 2023-2024 Original 2023-2024 2023-2024 Amended Biennial Budget Adjustments Biennial Budget Beginning Fund Balance $ 3,379,100 $ 803,607 $ 4,182,707 Revenue $ 1,600,000 $ 93 $ 1,600,093 Expense $ 4,152,500 $ (138,015) $ 4,014,485 Ending Fund Balance $ 826,600 $ 941,715 $ 1,768,315 Fund: 111-Impact Mitigation Fee 2023-2024 Original 2023-2024 2023-2024 Amended Biennial Budget Adjustments Biennial Budget Beginning Fund Balance $ 4,836,500 $ 468,055 $ 5,304,555 Revenue $ 10,877,200 $ 45 $ 10,877,245 Expense $ 4,798,600 $ 675,900 $ 5,474,500 Ending Fund Balance $ 10,915,100 $ (207,800) $ 10,707,300 Fund: 206 -Bond Redemption Fund 2023-2024 Original 2023-2024 2023-2024 Amended Biennial Budget Adjustments Biennial Budget Beginning Fund Balance $ - $ - $ - Revenue $ 598,400 $ - $ 598,400 Expense $ 598,400 $ - $ 598,400 Ending Fund Balance $ - $ - $ - Fund: 302 -Capital Construction 2023-2024 Original 2023-2024 2023-2024 Amended Biennial Budget Adjustments Biennial Budget Beginning Fund Balance $ 245,100 $ 302,531 $ 547,631 Revenue $ 2,178,400 $ 16,128,569 $ 18,306,969 Expense $ 2,178,400 $ 16,083,000 $ 18,261,400 Ending Fund Balance $ 245,100 $ 348,100 $ 593,200 Fund: 304 -Street Capital Projects 2023-2024 Original 2023-2024 2023-2024 Amended Biennial Budget Adjustments Biennial Budget Beginning Fund Balance $ 979,200 $ 1,319,851 $ 2,299,051 Revenue $ 12,718,900 $ (137,951) $ 12,580,949 Expense $ 12,385,700 $ (156,880) $ 12,228,820 Ending Fund Balance $ 1,312,400 $ 1,338,780 $ 2,651,180 Fund: 412 -Water Stabilization 2023-2024 Original 2023-2024 2023-2024 Amended Biennial Budget Adjustments Biennial Budget Beginning Fund Balance $ 955,500 $ 10,906 $ 966,406 Revenue $ - $ 94 $ 94 Expense $ - $ - $ - Ending Fund Balance $ 955,500 $ 11,000 $ 966,500 2023-2024 Original 2023-2024 2023-2024 Amended Fund: 413 - Water Capital Biennial Budget Adjustments Biennial Budget Beginning Fund Balance $ 3,821,600 $ 3,737,341 $ 7,558,941 Revenue $ 14,861,800 $ 59 $ 14,861,859 Expense $ 11,424,000 $ - $ 11,424,000 Ending Fund Balance $ 7,259,400 $ 3,737,400 $ 10,996,800 Fund: 414 -Water Debt Service 2023-2024 Original 2023-2024 2023-2024 Amended Biennial Budget Adjustments Biennial Budget Beginning Fund Balance $ - $ - $ - Revenue $ 1,502,600 $ - $ 1,502,600 Expense $ 1,502,600 $ - $ 1,502,600 Ending Fund Balance $ - $ - $ - Fund: 421-Storm Drainage Utility 2023-2024 Original 2023-2024 2023-2024 Amended Biennial Budget Adjustments Biennial Budget Beginning Fund Balance $ 1,725,100 $ (314,382) $ 1,410,718 Revenue $ 3,490,100 $ 82 $ 3,490,182 Expense $ 4,905,504 $ (400,000) $ 4,505,504 Ending Fund Balance $ 309,696 $ 85,700 $ 395,396 Fund: 422 -Storm Drainage Stabilization 2023-2024 Original 2023-2024 2023-2024 Amended Biennial Budget Adjustments Biennial Budget Beginning Fund Balance $ 536,800 $ 6,166 $ 542,966 Revenue $ - $ 34 $ 34 Expense $ - $ - $ - Ending Fund Balance $ 536,800 $ 6,200 $ 543,000 Fund: 423 -Storm Drainage Capital Facil 2023-2024 Original 2023-2024 2023-2024 Amended Biennial Budget Adjustments Biennial Budget Beginning Fund Balance $ 94,500 $ 498,637 $ 593,137 Revenue $ 1,200,000 $ (899,937) $ 300,063 Expense $ 1,200,000 $ (400,000) $ 800,000 Ending Fund Balance $ 94,500 $ (1,300) $ 93,200 Fund: 424 -Storm Drainage Debt Service 2023-2024 Original 2023-2024 2023-2024 Amended Biennial Budget Adjustments Biennial Budget Beginning Fund Balance $ - $ - $ - Revenue $ 355,300 $ - $ 355,300 Expense $ 355,300 $ - $ 355,300 Ending Fund Balance $ - $ - $ - Fund: 431-Sewer Operating 2023-2024 Original 2023-2024 2023-2024 Amended Biennial Budget Adjustments Biennial Budget Beginning Fund Balance $ 4,022,800 $ 1,885,875 $ 5,908,675 Revenue $ 11,397,400 $ 25 $ 11,397,425 Expense $ 11,019,664 $ 90,000 $ 11,109,664 Ending Fund Balance $ 4,400,536 $ 1,795,900 $ 6,196,436 Fund: 432 -Sewer Stabilization 2023-2024 Original 2023-2024 2023-2024 Amended Biennial Budget Adjustments Biennial Budget Beginning Fund Balance $ 1,430,000 $ 16,270 $ 1,446,270 Revenue $ - $ 30 $ 30 Expense $ - $ - $ - Ending Fund Balance $ 1,430,000 $ 16,300 $ 1,446,300 2023-2024 Original 2023-2024 2023-2024 Amended Fund: 433 -Sewer Capital Biennial Budget Adjustments Biennial Budget Beginning Fund Balance $ 5,355,800 $ 426,956 $ 5,782,756 Revenue $ 23,668,400 $ 44 $ 23,668,444 Expense $ 15,001,900 $ - $ 15,001,900 Ending Fund Balance $ 14,022,300 $ 427,000 $ 14,449,300 Fund: 434 -Sewer Debt Service 2023-2024 Original 2023-2024 2023-2024 Amended Biennial Budget Adjustments Biennial Budget Beginning Fund Balance $ 550,000 $ 8,878 $ 558,878 Revenue $ 977,600 $ 22 $ 977,622 Expense $ 427,600 $ - $ 427,600 Ending Fund Balance $ 1,100,000 $ 8,900 $ 1,108,900 2023-2024 Original 2023-2024 2023-2024 Amended Fund: 500 -Equipment Rental and Revolving Biennial Budget Adjustments Biennial Budget Beginning Fund Balance $ 3,748,900 $ 241,182 $ 3,990,082 Revenue $ 3,179,300 $ 18 $ 3,179,318 Expense $ 4,866,300 $ - $ 4,866,300 Ending Fund Balance $ 2,061,900 $ 241,200 $ 2,303,100 Fund: 632 -Wastewater Treatment Facil Fee 2023-2024 Original 2023-2024 2023-2024 Amended Biennial Budget Adjustments Biennial Budget Beginning Fund Balance $ 5,135,900 $ 146,955 $ 5,282,855 Revenue $ 5,052,000 $ 45 $ 5,052,045 Expense $ 2,252,000 $ - $ 2,252,000 Ending Fund Balance $ 7,935,900 $ 147,000 $ 8,082,900 City Hall Improvements - $11 million Project is for improving the building exterior including roofing, siding, windows, HVAC system, Solar array and some interior updates. Design to Ad (100%) 10.01.2020 Permit Fees PSE Construction (incl Sales Tax) 06.13.2023 Construction Mgmt. Services Project Contingency Total 03.01.2023 $565,000 $45,000 $100,000 06.01.2024 $9,015,000 $350,000 $925,000 $11,000,000 City Hall Improvements Debt Options $10.5 million 15 3.8% $933,000 $13,946,500 $10.5 million 20 4.05% $780,000 $15,560,000 $11 million 15 3.8% $976,000 $14,602,000 $11 million 20 4.05% $817,000 $16,303,000 85% General Fund/REET 1 5% Water Fund 5% Storm Fund 5% Sewer Fund $663,000-$829,600 $39,000-$48,000 $39,000-$48,000 $39,000-$48,000 RESOLUTION NO. A RESOLUTION OF THE CITY OF PORT ORCHARD, WASHINGTON, DECLARING ITS OFFICIAL INTENT TO REIMBURSE CAPITAL EXPENDITURES IN CONNECTION WITH CERTAIN CAPITAL PROJECTS FROM PROCEEDS OF A FUTURE BORROWING. WHEREAS; The Port Orchard City Hall facility was constructed in 1999. Through the years, weather, normal wear and tear, and increased staffing have triggered a need to update and renovate the building; and WHEREAS; The City Council approved a construction contract at the June 13,2023 meeting for the City Hall Construction; and WHEREAS; The City intends on financing the project costs by issuing debt and intend on using city funds to cash flow the project until the debt can be issued; now therefore THE CITY COUNCIL OF THE CITY OF PORT ORCHARD, WASHINGTON, HEREBY RESOLVES AS FOLLOWS: THAT: Section 1. Findings. 1.1 The City of Port Orchard, Washington (the "City") intends to make expenditures for the Project (identified below) from funds that are available but that are not (and are not reasonably expected to be) reserved, allocated on a long-term basis, or otherwise set aside for those expenditures, and reasonably expects to be reimbursed for those expenditures from proceeds of bonds or other obligations ("bonds") issued to finance those expenditures. 1.2 Certain federal regulations (the "federal reimbursement regulations") relating to the use of proceeds of tax exempt bonds to reimburse the issuer of the bonds for expenditures made before the issue date of the bonds require, among other things, that not later than 60 days after payment of the original expenditure the City (or any person designated by the City to do so on its behalf) declare a reasonable official intent to reimburse those expenditures from proceeds of bonds. Section 2. Description of Project for Which Expenditures are to be Made. The City intends to make (and/or, not more than 60 days before the date of this declaration, has made) expenditures, and reasonably expects to reimburse itself for those expenditures from proceeds of bonds, to fund the City Hall Renovations Project designed to replace siding, windows, HVAC system and minor interior renovations, and a solar array (the "Project"). Section 3. Maximum Principal Amount and Authorization of Obligations Expected to be Issued for the Project. The City expects that the maximum principal amount of bonds that will be issued to finance the Project is expected to be not more than $11,000,000 plus costs of issuance of the bonds and such principal amount is authorized to be issued pursuant to a bond ordinance to Resolution No. Page 2 of 2 be presented to the City Council on a date deemed appropriate by the Finance Director, in consultation with the Finance Committee. This resolution authorizes the preparation of all necessary bond documents and constitutes due authorization of the bonds to the extent necessary to authorize expenditures of available funds of the City in anticipation of the receipt of bond proceeds. Section 4. Declaration Reasonable. The City Council has reviewed its existing and reasonably foreseeable budgetary and financial circumstances and has determined that the City reasonably expects to reimburse itself for expenditures for the Project from proceeds of bonds because the City has no funds available that already are, or are reasonably expected to be, reserved, allocated on a long-term basis, or otherwise set aside by the City for those expenditures on the Project. Section 5. Limitations on Uses of Reimbursement Amounts. The City will not, within one year after the expected reimbursement, use amounts corresponding to proceeds received from bonds issued in the future to reimburse the City for previously paid expenditures for the Project in any manner that results in those amounts being treated as replacement proceeds of any tax exempt bonds, i.e., as a result of being deposited in a reserve fund, pledged fund, sinking fund or similar fund (other than a bona fide debt service fund) that is expected to be used to pay principal of or interest on tax exempt bonds. Nor will the City use those amounts in any manner that employs an abusive arbitrage device to avoid arbitrage restrictions. Section 6. Date of Declaration. This declaration of official intent shall be dated as of the date of adoption of this resolution. Section 7. Ratification and Confirmation. Any actions of the City or its officers prior to the date thereof and consistent with the terms of this resolution are ratified and confirmed. Section 8. Effective Date. This resolution shall be in full force and effect from and after its adoption and approval. PASSED by the City Council of the City of Port Orchard, SIGNED by the Mayor and attested by the City Clerk in authentication of such passage this 27t" day of June 2023. Robert Putaansuu, Mayor ATTEST: Brandy Wallace, MMC, City Clerk