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2017-2018 Final BudgetCITY OF PORT ORCHARD The mission of the City of Port Orchard is to promote economic development and prosperity within our community while simultaneously providing quality support and services to our residents. We are dedicated to providing a high level of public safety, infrastructure, and economic strength while preserving our small town character. 2017-2018 BUDGET FOR FISCAL YEAR JANUARY 1, 2017 THROUGH DECEMBER 31, 2018 ADOPTED BY: The City Council Port Orchard, Washington ORDINANCE NO. 040-16 PREPARED BY: Office of the City Treasurer Allan J. Martin TREASURER Rebecca Nichols ASSISTANT TREASURER ACCOUNTING ASSISTANTS Kathy Cain Heidi Draper Melissa Gaines Kori Pearson Patti Saltsgaver TABLE� �� �� CONTENTS INTRODUCTION Mayor's Letter 1 City Overview 3 General Information 7 Statistical Information 8 Budget Process 11 Budget Calendar 12 Ordinance No. 040-1G 14 Organization Charts 18 C>fhoia|o 18 Boards and Commissions 19 Council Committees 21 Council Goals 22 Financial Message 23 Budget Guide 24 Financial Policies 41 Citywide Revenues &Expenditures 43 Summary ofRevenues 44 Summary ofExpenditures 45 Budget Revenues byCategory 48 Budget Expenditures byCategory 47 Fund Balance Changes 48 Personnel List 50 Salary Schedule 50 Operating Transfers 52 GENERAL FUNDS Overview 53 Revenues &Expenditures 54 Fund Balance and Reserves bb Stabilization Fund 57 DEPARTMENTAL EXPENDITURES ADMINISTRATION DEPARTMENT 58 Legislative ' City Council 71 ExeouUwa—Maynr 72 Record Services 73 Legal Services 74 Miscellaneous 75 Festival ufChimes &Lights 78 FINANCE DEPARTMENT 77 Finance 82 Human Resources 83 Information Technology 84 MUNICIPAL COURT 85 LAVYENFORCEMENT DEPARTMENT 80 Law Enforcement 93 Detention and Correction 99 Emergency Services 100 COMMUNITY DEVELOPMENT DEPARTMENT102 Commute Trip Reduction 109 Building Inspections 109 Community Development 110 Property Development 111 PUBLIC WORKS DEPARTMENT 112 Other Governmental Services 119 Library Services and Facilities 121 Parks and Recreation 122 City Street 124 CAPITAL PROJECTS FUNDS Capital Construction 130 Cumulative Reserve for Equipment Replacement 132 Street Capital Projects 133 PROPRIETARY FUNDS Water Sewer Utility 135 Water Sewer Equipment Replacement 147 Cumulative Reserve for Water Sewer 147 Storm Drainage Utility 148 Storm Drainage Equipment Replacement 152 SPECIAL REVENUE FUNDS Criminal Justice 155 Special Investigative Unit 156 Community Events 157 Paths & Trails 158 Real Estate Excise Tax 158 Impact Fee Transportation 159 Impact Fee Parks 159 Impact Fee McCormick Woods 159 Impact Fee Bayside 159 DEBT SERVICE FUNDS 2003 Limited Tax GO Refunding 161 1984 Refunding 161 CAPITAL BUDGET 163 GLOSSARY 167 ii CITY OF PORT ORCHARD Mayor 216 Prospect Street, Port Orchard, WA 98366 Voice: (36o) 876-4407 • Fax: (360) 895-9029 themayor@cityofportorchard.us www.cityofportorchard.us January 1, 2017. To: Citizens of Port Orchard Port Orchard City Council I am pleased to present the 2017-2018 Biennium Budget, my first budget as Mayor of Port Orchard. This biennial budget presents a major change from our prior practice of single year budgets. In the preparation of this budget we have separated operational needs from the City's Capital needs. The Operating Budget primarily captures the expenditures related to maintaining services. The Capital Budget includes projects identified by the Mayor and the City Council as well as responding to the equipment needs of staff. As part of the biennial budget the Mayor and Finance staff has worked with the City Council to identify one time revenues to make sure these funds are allocated to capital expenditures. This budget also includes funding for a Code City ballot measure in November 2017. As one of the few remaining Second Class Cities in the State of Washington I feel it's time for Port Orchard to have a more progressive form of Government. Operating Budget Highlights This budget continues to build reserves as outlined in our financial policies; this biennial budget adds $140,000 to the stabilization fund over the next two years for a total of $809,000 at the end of 2018. In 2016 the City created a Transportation Benefit District that will be funded by a $20 car tab fee; these funds will be used to fund street preservation and maintenance. This biennial budget has made funds available for the Horstman Road overlay as the first recipient for these funds. Two additional flashing speed signs costing $7,000 are funded out of the street fund. Topsoil will be applied and the over seeding will occur at Van Zee Park for $7,000. As part of a beautification plan for downtown $22,000 has been budgeted for the replacement of the trash receptacles and $10,000 to replace damaged and diseased street trees on Kitsap Street, Prospect Street, Cline Ave and Sidney Ave. Hwy 160 and Bethel Road Studies will be completed in this biennium at a cost of $150,000 which will provide us a conceptual design for improvements to these vital roadways. This budget implements a 4% increase to the City's Natural Gas Tax in 2018. The increase equalizes the Natural Gas Tax with our other utility taxes at 6%. The $94,500 generated from this increase is part of the funding solution for the proposed Tremont project bond debt. Page 1 Capital Budget Highlights I'm proud to present the largest capital budget in the history of the City of Port Orchard with over $26M in projects, while $18M of this is a supplemental request that represents the Tremont Widening Project, the projects below are monumental and represent a positive future for the City of Port Orchard. Two significant waterworks projects are proposed in this biennial budget that will eliminate our water supply dependence on the City of Bremerton and vastly improve the quality of the water we produce. These projects include the development of a new well and treatment system, an upgrade to the treatment system of one of our existing wells and water main replacement. The water system improvements totaling $7.1M represent infrastructure investments that will serve our City for generations to come. A 100% design will be completed for the Anderson Hill Roundabout in 2017 at cost of $50,000 which will enable the City to participate in competitive grants for funding. This budget provides six new police vehicles at a cost of $288,405 over the next two years funded from Criminal. Justice funds. A continuation of our IT Cloud migration project includes a Springbrook Cloud Conversion in the amount of $63,000. Construction of segment #3 of the Bay Street Pedestrian Path will be completed in 2017 for $530,000. This phase of the project will create a functional pathway along our waterfront connecting the Marina Park to the Westbay Center. To enhance our waterfront $10,000 is budgeted for a waterfront park conceptual design to expand the Marina Park and a pocket park on the Bay Street Pedestrian Path. Funding for the construction of Phase II of the McCormick Village Park will be provided in this biennial budget. The construction cost will come from grant funding of $323,000, park impact fees of $345,700, and REET 2 funds of $286,750 for a total of $955,450. Additional park improvements include an irrigation system at Clayton Park in the amount of $6,000. The capital budget also includes the replacement of the Public Works Go-4 with a right-hand drive truck that can be used for purposes beyond meter reading. The purchase of this $25,000 truck is significantly less expensive than replacing the single purpose Go-4. A small SUV in the amount of $25,000 is being purchased for the Public Works and will be utilized by the Public Works Supervisor/Water System Manager, his truck will in turn be passed on to the frontline staff for use in the field. Conclusion I would like to thank the professional staff for their input and hard work in writing this budget. I look forward to working with the City's Finance Committee, Councilmembers and Citizens in the implementation of our 2017-2018 biennial budget. Sincerely, Robert Putaansuu Mayor Page 2 CITY OVERVIEW HISTORIC PORT ORCHARD " Pod Orchard is the county seat of Kbeap. But it was not always the county oaat, nor was it always called Port Orchard. Originally called Sidney, Port Orchard was platted in188GbyFrederick Stevens, who named itafter his father Sidney. The Illinois inventor, Sidney M.Stevens came west from DeKalb, IL for a family visit to the Long Lake area. He liked what he saw so much that hepaid $900 for 881/2 acres with the intention of creating a town. exowsYoTsyswn The boundaries were similar huthose today -Sinclair Inlet on the north, Mitchell Road on the east, South Street onthe nouth, and one block west ofShort Street on the west. Early industry was primarily lumber and the loggers that frequented the nine saloons in town. The town of Sidney was incorporated September 15. 1800, and was the find in Kitaap County to be both platted and FeEoEmm«mTsvEmo Shortly after Sidney was platted, the Navy Department was looking for asite for n second naval installation on the Pacific Coast. Sidney residents took an active role in influencing the commission of the Port Orchard Navy Yard (now Puget Sound Naval Shipyard). � The same year the Navy officially dedicated the Port Orchard Navy Yard, Sidney had its first big fire. The town lost the original Sidney Hotel and a couple of residences on Prospect Street. In 1894, all buildings on both sides of Bay between Sidney and Frederick were burned down. legislature and When the county was first established, the county seat was placed in Port Madison. Sidney decided it wanted the county seat and at the general election in 1892, voters agreed since Sidney had such bright development prospects. In the middle of all this growth and occasional disaster was a political fight of major proportions. Harry Masterman Orchard, ship's clerk attached to the flagship Discovery received credit for discovering the body of water that now bears his name. In December 1892, the people of Sidney requested the separately to the Post Office Department to change the name of their town to Port Orchard. The legislature refused. Charleston (now West Bremerton) had also requested the name of Port Orchard. Commander Morong requested the Navy yard mail be routed through the proposed Port Orchard post office. Through a series of confusions and misunderstanding by various departments about the geography of this region, the Port Orchard post office ended up in Sidney and the Charleston post office was in Port Orchard. It stayed this way for ten years until Will Thompson, editor of the Sidney Independent, went into State legislature (1902-03) and succeeded in restoring the Charleston post office to Charleston and the Port Orchard post office to Port Orchard. In 1903 the legislature changed the name of Sidney to what we know it as today...Port Orchard. PORT ORCHARD TODAY Port Orchard is located on the Sinclair Inlet of the Puget Sound. As a waterfront community we are proud of our amenities. Our numerous marinas provide visitors and boat dwellers alike with convenient accommodations. Our downtown corridor offers shopping, museums, entertainment, galleries and dining. With ferry access from Bremerton and Seattle, an excursion to Port Orchard is an easy day trip or a weekend getaway. When visiting our city, it is hard to miss the majestic view of the Olympic Mountains and the pride of military heritage just across the water at the Puget Sound Naval Shipyard. Port Orchard is business -friendly and customer trained in customer service and are committed to providing you with services that exceed your expectations. If you are thinking about opening a new business, relocate your business, or grow your service is our top priority. All city employees are Page 4 business, our staff are here to help you move seamlessly through the steps and get your business up and running in the City of Port Orchard as soon as possible. The City has an Economic Development/Tourism Committee, comprised of City Councilmembers and City staff, whose goal this year is to adopt a Tourism Promotion Strategic Plan. The City of Port Orchard is also a part of the Kitsap Economic Development Alliance, whose mission is through a partnership of government and business, attract and retain primary businesses to Kitsap County and its individual communities, ensuring growth and a desirable quality of life. CULTURAL ACTIVITIES Port Orchard plays host to many festivals and events throughout the year. The Farmers Market is always a favorite of local citizens and operates every Saturday from April to October. Late spring/early summer brings the fun of the Seagull Calling Festival as part of the Kitsap Harbor Festival. Take pleasure in the evenings at Waterfront Park enjoying the free Concerts by the Bay series. Summertime fun includes the Fathoms O'Fun Festival and 4th of July Fireworks, concluding with the Cruz Classic Street Fair in August. November brings the three day Chocolate Festival consisting of the Chocolate Ball, silent auction, and public sampling. Close out the year with the Annual Festival of Chimes and Lights and Jingle Bell Run — fun for the entire family. 2017 PUBLIC ACCESS & AMENITY PROJECTS This coming year will bring additional work on the Bay Street Pedestrian Pathway; McCormick Village Park; and Dekalb Pier. In 2017 the City continues the Pedestrian Pathway by acquiring properties necessary to proceed with the final construction phase of the pathway. Beginning at the foot -ferry dock at Sidney, the pathway will make its way along Bay Street ending at the Annapolis dock. A long-term project, the pathway is expected to be completed no later than 2023. The pathway is part of Kitsap's countywide Mosquito Fleet Trail. The Bay Street Pedestrian Pathway provides a safe area for walking and bicycling for local citizens and tourists alike. McCormick Village Park began construction in 2014 with the completion of a restroom, parking area, and trail. In 2016 Phase Page 5 11 brought us the final design, partially funded with a grant from the Washington State Recreation and Conservation Office (RCO). The build -out of the park is expected to be completed in 2018. Once completed, the 27.4 acre McCormick Village Park will provide the Port Orchard community with playgrounds, trails, picnic shelters and tables, and natural wetlands and forest. The Dekalb Pier project began in 2013 with construction of the pier and uplands. In 2016,the project was completed adding a 300 foot pier extension, as well as floats and piling replacements, providing the required 7-foot minimum water depth beneath moored vessels. This project included funding from grants administered by the Washington State Department of Commerce. The Dekalb Pier will provide boaters with a convenient spot to load and unload watercraft. It also allows citizens an area to sit and watch the boats, have a picnic at the provided picnic table, or fish from the pier. The City of Port Orchard continues to work towards making the city a place where its citizens want to live. As we move towards completion of these projects, rest assured that we will continue to look for ways to improve our city. Page 6 GENERAL INFORMATION: Form of Government Type of Government Location County Land Area Rank in Size/State Rank in Size/County Population - 2016 Assessed Valuation (Taxable) City Employees GENERAL INFORMATION Mayor -Council Second -Class City Kitsap Peninsula Kitsap 9.35 Sq. Miles 66 3 13,810 1,532,640,083 88 2017 PROPERTY TAX LEVY: Regular Levy $2,699,376 2017 PROPERTY TAX RATE: Port Orchard City State School Levy Kitsap County C.E. Kitsap County Mental Health Kitsap County Veterans Relief Kitsap County Conservation Futures P.U.D. Port Of Bremerton S.K. Schools S.K. Fire & Rescue Kitsap Regional Library Total Property Tax Rate UTILITY TAX RATE: Electric, Telephone, Solid Waste Gas Cable PARKS & RECREATION: Total Acreage Number of Parks & Playgrounds 1.761085 2.116735 1.004677 .025000 .013000 .043511 .074108 .350545 3.245166 1.962012 .353368 10.949207 6% 2% 5% 71.76 9 STREETS: Total Streets in Miles Total Pedestrian Trails in Miles SALES TAX RATE: State Criminal Justice City Kitsap County Kitsap Transit County Jail Expansion Emergency Communications KC Mental Health Treatment Serv. State Administration Fee Sales Tax Rate STATE EXCISE TAX RATE: Water Utility Sewer Utility Storm Drainage Utility 68.18 0.50 6.50 0.10 0.84 0.15 1.10 0.10 0.10 0.10 0.01 9.00 5.029% 3.852% 1.800% HOTEL/MOTEL TAX RATE: 0.20% BUSINESS LICENSE FEE: General Business Non -Profit Business $35.00 No Cost LICENSES & PERMITS ISSUED IN 2016: General Business Licenses 2641 Building Permits 398 ELECTION & VOTER REGISTRATION: Number of Registered Voters 9,106 2017 UTILITY BI-MONTHLY RATE: Water $60.50 base up to 5000 gal. + 2.75-3.40 for each add'I 1000 gal. Sewer $124.00 Storm (Residential) $28.00 Page 7 STATISTICAL INFORMATION NFORMATUON Incorporated in1898 Elevation: 140feet Latitude: 47.53N.Longitude: 122.G4VV Population density: 1.476.5people per square mile Population in 2014: 13,266. Population change since 2000: +72.4% K8ales:G.340 Females: G.017 Median resident age: 33.4 years Washington median age: R211=19AMEEM 37.5yaara For population 25 years and over in Port Orchard: ° High school orhigher: Q2796 ~ Bachelor's degree orhigher: 25.0Y6 ° Graduate or professional degree: 8.8Y6 ~ Unemployed: 8.8% ~ Mean travel time howork (commute): 25.8 minutes For population 15 years and over in Port Orchard city: ° Never married: 9.5% ~ Now married: 51.3Y615 * 8epanstexd:1.8Y6 ~ VVk1owed:5.3Y6 June, July and August offer warm days and blue skies. August is usually the warmest summer month with an average high of 75F and low 53F. December and January are the coldest of the winter months with January averaging 44F high and 34F low. A day or two of snow is not uncommon during the winter. Our reputation for constant winter rain is undeserved although many fall and winter days are overcast. eq°F 80°F 70°F °F 517°F 40°F 3CPF- 20°F Average Temperatures Jars Feb Mar Apr May Jun Jul Aug Sep oc Nov Unemployment in September 2015: Port Orchard: Washington: Daily high Average Daily law 4A5 av 5.0% 4.8% Precipitation Full-time law enforcement employees in 2015, including police officers: 24 (22officers). Officers per 1,000 residents here: 1.63 Washington average: 1.45 Estimated median household income in 2015: $65,718 (it was $34,020 in 2000) Port Orchard: $65,718 Washington: $64,129 Estimated per capita income in 2015: $29,401 (it was $16,382 in 2000) Estimated median house or condo value in 2015: $261,396 (it was $117,000 in 2000) Port Orchard: $261,396 Washington: $284,000 muum. Mean prices in 2015: All housing units: $334,446; Detached houses: $3596,176; Townhouses or other attached units: $312,768; In 2-unit structures: $238,408; In 3-to-4 unit structures: $457,348; In 5-or-more- unit structures: $249,856; Mobile homes: $126,927; Occupied boats, RVs, vans, etc.: $107,463 Page 9 Horne Sales in Port Orchard, WA 160 __ _...__.___.... _____.__ __. ____._.- $160 000 140_ $140, 12 Y S120, 100 4100 000 ,000 ,000 4 .. �.000 ,000 2012 Median gross rent in 2015: $1,063 2013 20014 Hone Sates Per 1).taqer Median real estate property taxes paid for housing units with mortgages in 2015: $2,528 (1.0%) Median real estate property taxes paid for housing units with no mortgage in 2015: $2,448 (1.0%) Single-family new house construction building permits • 1997: 22 buildings, average cost: $76,400 • 1998: 38 buildings, average cost: $72,400 • 1999: 51 buildings, average cost: $68,600 • 2000: 36 buildings, average cost: $81,800 • 2001: 28 buildings, average cost: $84,900 • 2002: 36 buildings, average cost: $75,800 • 2003: 69 buildings, average cost: $69,800 • 2004: 48 buildings, average cost: $135,900 • 2005: 23 buildings, average cost: $122,100 • 2006: 48 buildings, average cost: $135,900 • 2007: 37 buildings, average cost: $145,500 • 2008: 15 buildings, average cost: $162,800 • 2009: 54 buildings, average cost: $199,600 • 2010: 115 buildings, average cost: $209,500 • 2011: 66 buildings, average cost: $215,200 • 2012: 88 buildings, average cost: $244,800 • 2013: 42 buildings, average cost $195,600 • 2014: 49 buildings, average cost $229,300 SOURCES: City-Data.com - http://www.city-data.com/city/Port-Orchard-Washington.html U.S. Census Bureau - http://www.factfinder.census.gov Office of Financial Management - http://www.ofm.wa.gov/pop/april1/default.asp *The data presented is the most current information available Page 10 ���� �� ���� � ���� n x —��«� n �� Budget Process Preliminary Budget Development Treasurer prepares revenue projections for all funds: estimates ending fund balance for the General Fund. Departments provided Budget preparation material '-~~ /^ Department Heads submit / departmental budgets and `\~ supplemental requests -4 Council sets broad goals, initiatives | and policy, which provides budget | Finance Department compiles the oo-J, "Preliminary Budget requests" and supplemental requests -� /Mayor 8Treasurer review "Preliminary Budget" and supplemental \ requests and make budget recommendations / The Mayor's Preliminary Budget, including the Mayor's Budget Message, ispresented mthe { N~ Council, and made available mpublic. { City Council wmrkotudiesare held mdeliberate onsupplemental ` requests and budget issues Budget Adoption Final Budget adopted by City Council Midbiennium Review No ' City Clerk publishes notice orfiling orpreliminary budget and notice of public hearing date. City Council sets property tax levy Public hearing nnproposed budget isheld atCouncil meeting City transmits final budget to the / Division mMunicipal Corporation mthe � Budget document made OLaLe Auditor uunuemmmom / avai/uulemthe public Association orWashington Cities ,/ |CUyCounm»eanngon/ ' review outcome Page 11 Revenue Hearing and City Council sets property tax levy B��^ BUDGET CALENDAR 2017 MID -BIENNIAL BUDGET REVIEW SCHEDULE • Departments provided Budget Status Report * Treasurer reviews Budget Status Reports with the Mayor * Departments are consulted onpossible modifications tothe biennial budget SEPTE[NBER * Treasurer preliminary review and status report * Council Finance Committee initial review of status report • Potential Department Director Interviews on modifications OCTOBER * Public Hearing on Revenue Sources leading to setting 2018 Property Tax Levy Collection * Work Study Session Mid -Biennial Review modification recommendations * Proposed modifications made available bothe public ° Continuation ofCouncil Finance Committee review NOVEMBER * Hearing Setting 2018PropartyTaxLavyCoUeotun * Ordinance setting 2018Property Tax Levy ° Work Study Session continuation * Council Finance Committee onmodification recommendations [� ^�ECEMBER ° Public Hearing on modifications tothe biennial budget advertised edleast once, and held nolater than the first Monday inDecember and may becontinued from time totime. * At such hearing, the Council may consider a proposed Ordinance to carry out such modification, subject to provisions of RCW 35.34 U/\N[]/\RY 2018 2018 CALENDAR FOR PREPARATION AND ADOPTION OF 2019-2020 BIENNIAL BUDGET DULY AUGUST • Mayor discusses 2019-2020 fiscal year goals and aspirations with Department Heads. The meetings are non -documentary • Project Revenue estimates for 2019-2020 • Current budget mid -year report to Finance Committee • Personnel Salary and Benefits projections for 2019-2020 • Departments provided budget preparation material to prepare detailed estimates for the 2019-2020 budget. • Treasurer prepares revenue projections for all funds; estimate ending balance for the General Fund on December 31, 2018 SEPTEMBER • Department Heads submit budget and supplemental requests to the Finance Department • Finance Department reviews budget requests for formatting and account coding • Mayor and Treasurer review "Preliminary Budget -Narrative" and department requests • Treasurer schedules meetings with Mayor and Department Heads to review budget and supplemental requests • Finance Department prepares Preliminary Budget Publication OCTOBER • Preliminary Budget delivered to the City Council and available to the public • Council Meeting — Public Hearing on Revenue Sources • Finance Committee Meeting to Review Preliminary Budget • Council Study Session regarding 2019-2020 Budget and Revenue • Publication of notice of availability of the 2019-2020 Preliminary Budget for public review and public hearing notice for the proposed final budget to be published • All day Finance Committee meeting: Department budget review NOVEMBER • City Council Meeting for the first and final reading of an Ordinance setting the 2019- 2020 Property Tax Levy • Finance Committee meeting to review the comprehensive operating and capital budgets • Council Study Session on proposed budget • Copies of Proposed Budget made available to the public • City Council meeting: Public hearing and first reading of the 2019-2020 Budget Ordinance • City Council meeting adopting the 2019-2020 final budget Page 13 ORDINANCE NO. 040-16 AN ORDINANCE OF THE CITY OF PORT ORCHARD, WASHINGTON ADOPTING THE 2017-2018 BIENNIAL BUDGET. WHEREAS, the preliminary budget for the 2017-2018 biennium, available October 3, 2016, was submitted to the City Council; and WHEREAS, the City Council held a public hearing on revenue sources on October 11, 2016; and WHEREAS, the Council Finance Committee met on October 31, 2016 and conducted department interviews and discussed the preliminary budget to make final recommendations to the Council which included the participation of the four additional council members; and WHEREAS, the City Council held a comprehensive work study session on the 2016 preliminary budget on November 15, 2016 and considered the Council Finance Committee's recommendations; and WHEREAS, A Notice of Hearing was published on November 18, 2016, and November 25, 2016, in the Port Orchard Independent newspaper stating the 2017-2018 preliminary budget was on file with the City Clerk and copies could be obtained at the office of the City Treasurer, and inviting the public to attend and/or submit written comments at the public hearing held December 5, 2016; and WHEREAS, the City Council held a public hearing on December 5, 2016 regarding the preliminary budget for the 2017-2018 biennium seeking public input on city priorities, public safety enhancements, cultural and recreational opportunities, and other public services; and WHEREAS, a copy of the 2017-2018 preliminary budget has been on file with the City Clerk and copies available from the City Treasurer for examination by the public during the time it was considered by the City Council; now, therefore, THE CITY COUNCIL OF THE CITY OF PORT ORCHARD, WASHINGTON, DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. the Budget of the City of Port Orchard for the 2017-2018 biennium is hereby adopted in its entirety as the biennial budget of the City of Port Orchard for 2017-2018 biennium as set forth below: (1) Estimated Revenue From All Sources: $75,869,894 Page 14 Ordinance No. O48'l6 Page 2 of 2 (2) Estimated Appropriations: Current Expense Fund 21,I98,624 Street Fund 3,900,635 Criminal Justice Fund 1,055/400 Special Investigative Unit Fund 68i500 Water -Sewer Utilities Fund 25,373,700 Storm Drainage Utility Fund 3,926000 Total Operating Funds 55,522.859 Other Non -Operating Funds I0,347,035 Total Funds 75,869,894 SECTION 2'Severabi|ity |fany section, sentence, clause orphrase ofthis Ordinance should be held to be unconstitutional or unlawful by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of any other section, sentence, clause orphrase ofthis Ordinance. SECTION 3. Publication. This Ordinance shall be published by an approved surnrnan/ consisting of the tide. SECTION 4. Effective Date. This Ordinance shall take effect and beinfull force and effect five days after publication, as provided by law. PASSED by the City Council of the City of Port Orchard, APPROVED by the Mayor and attested by the City Clerk in authentication of such passage this 13 th day of December 2016. Robert Putaansuu, Mayor Brandy Rinearson, CIVIC, City Clerk APPROVED AS TO FORM: aron Cates, City Attorney PUBLISHED: December 23,2OlO wEFFECTIVE DATE: December , 2016 '^�� - .~ � 3ponsore"v: Page 15 [--Legislative Branch Council [ ____ City Clerk Deputy City Clerk Office Assistant ORGANIZATION CHART Citizens Treasurer Assistant Treasurer 11 Accounting Assistants 6 Executive Branch Mayor Engineer/ Public Works Director Supervisor/ Water Sys. Mgr. Assistant City Engineer IT Manager/ Stormwate LAN Program Technician Manager IT Support Specialist HR , Coordinator l Public Works Crew 8 Mechanic Office Manager Office Assistant 0.6 GIS Specialist/ Dev Review Assist Public Works Foreman City Electrician Stormwater Employee Parks aintenance 2 Stormwater Maintenance Water I Systems Coordinator Community Development Director Office Manager/ Permit Coordinator I Office Office Assistant Manager Ad min Assistant 0.7 Permit Clerk Associate Planner 2 Records/ Evidence Clerks 2.25 Public Service Officer — Parking Enforcement Long Range] j Code Associate Enforcement Planner Parks Summer Help 4 Building Inspector Judicial Branch Municipal Court Chief of Police Commander Sergeants [ i Officers 18 I Police Reserves Public Service Officer — Court 0.75 Judge Court Administrator Court Clerks 3.6 Page 16 ORGANIZATION CHART Citizens Mayor Police Public Works — Engineering Facilities Maintenance — Parks Streets Storm — Drainage L. Water/Sewer Finance & Technology Administration Community Development Building Code — Enforcement Planning Council Council Committees Economic Development/ Tourism Finance Festival of Chimes & Lights Lodging Tax Advisory Public Property Utilities Boards/ Commissions Animal Control Appeal Board Building Board of Appeals Civil Service Commission Design Review Board Kitsap County Public Facilities Board Planning Commission Solid Waste Advisory Board Page 17 OFFICIALS � ����U��U��U �� »��n n n��n��^u-�� ELECTED OFFICIALS TERM EXPIRATION RobedPutaonouu December 31.201H COUNCIL MEMBERS POSITION No. 1 ShawnCuooiavdi December 31.2810 POSITION No. 2 BekAehby December 31.2017 POSITION NO. 3 Scott Diener December 31.2017 POSITION No. 4 JohnC|auoon December 31.2019 POSITION NO. 5 CindyLuoareUi December 31.2019 POSITION NO. 6 Fred Chang December 31.2017 POSITION No. 7 APPOINTED OFFICIALS Allan J.Martin Treasurer Mark Dorsey Public Works Director/City Engineer Geoffrey Marti Police Chief Nicholas Bond Community Development Director Sharon Cates nfLighthouse Law Group Attorney BOARDS AND COMMISSIONS ANIMAL CONTROL APPEAL BOARD CURRENT MEMBERS: Lorraine Olsen, Dr. Nancy Isbell, and Bjorn Bjorke The animal control appeal board shall serve as the board of appeals for matters relating to declaration of potentially dangerous animals (levels 2 and 3) as established in Ordinance No. 1607, codified in POMC Title 7, and all subsequent amending ordinances thereto. Members shall consist of three members, who shall be appointed by the Mayor and two members shall be City residents, and one member shall be a veterinarian who is licensed by the State of Washington. Members shall serve a three-year term expiring December 31 st. BUILDING BOARD OF APPEAL CURRENT MEMBERS: David Fall, Matt Zawlocki, Sean Hoynes, Scott Kiele, Robert McGee, Wayne Senter, Vacant The Building Board of Appeal consists of five individuals, one from each of the following professions or disciplines; and two alternate members, who shall be called by the board chairperson to hear appeals during the absence or disqualification of a member. The Alternate members shall be appointed for five years. Professionals or disciplines are as follows: 1.) Registered design professional with architectural experience or builder or superintendent of building construction with at least ten years' experience, five of which shall have been in responsible charge of work. 2.) Registered design professional with structural engineering experience. 3.) Registered design professional with mechanical and plumbing engineering experience or a mechanical contractor with at least ten years' experience, five of which shall have been in responsible charge of work. 4.) Registered design professional with electrical engineering experience or an electrical contractor with at least ten years' experience, five of which shall have been in responsible charge of work. 5.) Registered design professional with fire protection engineering experience or a fire protection contractor with at least ten years' experience, five of which shall have been in a position of responsibility. CITY'S REPRESENTATIVE TO THE SOLID WASTE ADVISORY BOARD CURRENT MEMBERS: Stephanie Bailey Solid Waste is an advisory committee to assist in the development of programs and policies concerning solid waste handling and disposal and to review and comment upon proposed rules, policies, or ordinances prior to their adoption. The committee shall consist of a minimum of nine members. The Mayor shall appoint a City representative at the end of their term. Page 19 CIVIL SERVICE COMMISSION CURRENT MEMBERS: Ken Kambich, David Southard, and Rick Wyatt The City of Port Orchard Civil Service Commission shall be composed of three members who shall serve without compensation and who shall have qualifications, powers, and duties prescribed and directed by Chapter 41.12 RCW. The commission members shall be appointed by the Mayor for six -year terms to expire on December 31 st. DESIGN REVIEW BOARD CURRENT MEMBERS: John Purves, Diane Buchanan, Shannon Childs, David Bernstein, Noel Larson The Design Review Board consists of seven members appointed by the Mayor for three-year terms which expire on December 31st. Board members review development applications associated with development of the downtown overlay district area and make recommendations to the Director of Community Development regarding the applications' consistency with adopted design guidelines. KITSAP COUNTY PUBLIC FACILITIES DISTRICT BOARD CURRENT MEMBERS: Adrienne Breznau Members of the board of directors shall serve four-year terms and one board member shall be appointed by the Port Orchard City Mayor at the end of their term. PLANNING COMMISSION CURRENT MEMBERS: Stephanie Bailey, Annette Stewart, Trish Tierney, Tim Drury, Marcus Lane, Suanne Martin Smith, Mark Trenary Planning Commission members serve a six year term and are appointed by the Mayor and confirmed by the City Council. The commission may act as the research and fact finding agency of the city. To that end it may make such surveys, analyses, researches and reports as are generally authorized or requested by the Council with the approval of the Council. The Commission is comprised of at least seven residents of the City and one may be a non-resident of the City who meets on the third Monday evening of each month in the City Council Chambers. Page 20 COUNCIL COMMITTEES Members of the City Council are assigned to the following committees to assist in research and recommendations to the full council. ECONOMIC DEVELOPMENT/TOURISM COMMITTEE CURRENT MEMBERS: Bek Ashby, Clancy Donlin, and Fred Chang Committee responsibilities include public events and tourism related issues. FINANCE COMMITTEE CURRENT MEMBERS: John Clauson, Bek Ashby, Shawn Cucciardi Committee reviews contracts and financial issues of the city. FESTIVAL OF CHIMES AND LIGHTS COMMITTEE CURRENT MEMBERS: Cindy Lucarelli, and Clancy Donlin Committee recommends activities and advertisements on the subject and issues that have been historically assigned to this committee. LODGING TAX ADVISORY COMMITTEE CURRENT MEMBERS: Fred Chang, 4 Hoteliers, and 4 Non -profits Committee reviews lodging tax applications and provides recommendations to the Council for distribution. LAND USE COMMITTEE CURRENT MEMBERS: Shawn Cucciardi, John Clauson, Scott Diener Committee reviews actions of the City regarding City property, including parks, streets, alleys and sidewalks. They also work on updating the City's Comprehensive Parks Plan. SEWER ADVISORY COMMITTEE CURRENT MEMBERS: Fred Chang, Cindy Lucarelli, and Scott Diener The committee meets with the West Sound Utility District Commissioners to discuss the Joint Wastewater Treatment Facility. UTILITIES COMMITTEE CURRENT MEMBERS: Fred Chang, Scott Diener, and Cindy Lucarelli Committee members also serve as City representatives on the Sewer Advisory Committee meeting with the West Sound Utility District Commissioners to discuss the Joint Wastewater Treatment Facility. The committee reviews utility issues related to sewer, water, and storm -water. Page 21 COUNCIL GOALS 2017 Goals • Be ahead of change: o Update code to address derelict buildings. o Evaluate staffing and City Hall space needs. o Continue staff/Council communication regarding the Gorst project. o Track changes in WSDOT's plan for addressing the City's fish barrier culverts. • Harness "the evolution" that is coming to Port Orchard: o Provide more funding to parks and open space. • Invest in downtown and the waterfront: o Create a conceptual design for the next phase of the Bay Street pathway. o Determine the future of the marquee. o Begin planning how to move parking off the waterfront. • Engage community members: o Begin plans for at least 3 sub -areas prioritized in 2016. o Establish and start a public process for a re -design of the Bethel corridor. • Balance growth with affordability: o Begin applying for funding for Tremont. • Create predictability in development: o Add to and continue sharing the toolkit to attract businesses and developers to the City. o Establish policies for development connectivity, and check if this is already in the comprehensive plan and development regulations. 2018 Goals • Harness "the evolution" that is coming to Port Orchard: o Add Sidney Avenue project to TIP for completion by 2023 (or date TBD). o Evaluate the need for a Parks Department and/or Director. o Complete conceptual design for joint -use civic center. • Invest in downtown and the waterfront: o Continue the Pathway Project. o Move parking off the waterfront. • Engage community members: o Complete all 10 sub -area plans. • Balance growth with affordability: o Completed construction of Tremont. Page 22 CITY OF PORT ORCHARD Office of the City Treasurer 216 Prospect Street, Port Orchard, WA 98366 Voice: (36o) 876-7023 • Fax: (36o) 895-9029 www.cityofportorchard.us January 1, 2017 Dear Citizens, elected officials, staff, and friends You will notice that this budget is a two-year budget, called a Biennial Budget. It is my hope that by the Council's adoption of a Biennial Budget the City will have more time to focus on its most important tasks of delivering services to the public, rather than writing budgets each and every year. Over my tenure as Treasurer it's been my goal to find ways to work smarter by taking what works best in other places and putting them to work here in Port Orchard. We have incorporated several initiatives over the years and I am quite proud of what we have been able to accomplish. Our use of a 24-month Biennial appropriation will consolidate the amount of effort invested in the budget development and approval process. This is true for finance staff, department staff, and for the Council, which reviews the materials and eventually adopts a budget. While the benefits may be obvious as it relates to staff, the Council also realizes significant time savings that can be invested in other matters. For this budget those include starting and successfully completing the Tremont Widening project, construction of segment 3 of the Bay Street Pedestrian Pathway that will connect the Marina Park to West Bay Center. Construction of phase 2 of the McCormick Village Park in 2018, and implementing the pavement management system to upgrade our streets. The City is required to conduct a mid -Biennial review and modification no sooner than September 1 and be completed by the end of the year. If there are recommendations to modify the budget a public hearing on the changes is required before actions are taken. The City is still required to set the property levy for the coming year through a hearing process that needs to be completed by the end of November. Both of these provisions, the budget modification hearing and the hearing setting the tax levy, will continue the strong public oversight that citizens have come to expect. I am proud of our finance staff and have been honored to have had the opportunity to supervise such a fine group of individuals. Each finance person could succeed at any endeavor they choose. City employees throughout the various departments are dedicated to providing top notch public services. I have been humbled by the support of the citizens and impressed by their understanding and interest in their local government. Finally, I would like to thank the Mayor and Council members who have provided their thoughtful guidance. Their efforts and desire to make Port Orchard an even better place to live is commendable. Sincerely, Allan J Ma Treasurer Page 23 BUDGET GUIDE The City of Port Orchard, Washington was incorporated on September 1, 1890 and operates under the laws of the State of Washington applicable to non -charter code cities (second class city) with a Mayor/Council form of government. Title 35A of the Revised Code of Washington (RCW) states that preparing and adopting a budget is a legal requirement of all Cities. The budget is the lawful authority to expend public monies. It also controls how, when, and on what, those monies are expended. The City of Port Orchard's budget document is a policy document that reflects general principles or plans and provides direction for the progress of the city in the upcoming biennium. The guidelines developed during the budget process enable city departments to reach their goals as authorized by Council. This document is also an operational guide in that each city department has planned, formalized and described the actions it will take in the upcoming months to attain the goals of the City Council. The budget document also provides our public with a view into the operations of the City and can help develop an understanding of how each department relates with another and how all departments work together to serve the public's best interest. The budget discusses future goals and projects the City hopes to accomplish. BUDGETING, REPORTING & ACCOUNTING The City follows the generally accepted accounting principles (GAAP) as it applies to governmental units. The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. As prescribed by RCW 43.09.200 the City of Port Orchard utilizes the Budgeting, Accounting and Reporting System (B.A.R.S.) in the financial operations of the City. How B.A.R.S. WORKS B.A.R.S. utilizes a standard chart of accounts to report financial activities of an entity. The City is required to use the revenue/expense chart of accounts and procedures contained in the B.A.R.S. manual for reporting purposes. REVENUES: The 300 series of B.A.R.S. accounts designate all fund inflows by source. Revenue accounts 311-369 represent the source of revenues to a fund. Non -revenue accounts are indicated by account numbers 380 through 389. Accounts 391-397 characterize other financing sources in governmental -type funds. For proprietary and similar trust funds, 311-369 and account 395, represent revenues classified by source. Below is a listing of the Basic Revenue accounts used by the City of Port Orchard. 310. Taxes 320. Licenses & Permits 330. Intergovernmental Revenues 340. Charges for Goods & Services 350. Fines & Penalties 360. Miscellaneous Revenues Page 24 370. Proprietary Income 380. Non -Revenues 390. Other Financing Sources The next two digits are required to further describe which resource the revenues come from. Most revenue accounts have a total of five digits; however, some accounts may have two additional digits added for descriptive purposes. EXPENDITURES: The 500 series of B.A.R.S. accounts designate all fund outflows by function, activity, and character. Expenditure accounts 510-579 represent current operating expenditures. 581-589 are non -expenditure accounts. Expenditure accounts 591-593 depict debt service expenditures and accounts 594-595 are capital outlay expenditures. Accounts 596-597 represent other financing uses. Below is the listing of basic expenditure accounts used by the City of Port Orchard. 510. General Government Services 520. Public Safety 530. Utilities & Environment 540. Transportation 550. Natural & Economic Environment 560. Social Services 570. Culture & Recreation 580. Non -Expenditures 591-593. Debt Service 594-595. Capital Expenditures/Expenses 596-597. Other Financing Uses An additional two digits are required to further describe which function the basic account supports (operating transfers being the exception to this rule). The last descriptive coding is the two digit object code. The object code applies to the article purchased or the service obtained. OBJECT CODES: .10 Salaries & Wages .20 Benefits .21 Uniforms .30 Supplies .40 Other Services & Charges .50 Intergovernmental Services & Taxes .60 Capital Outlays .70 Debt Service: Principal .80 Debt Service: Interest and Related Costs .90 Interfund Payments for Services Page 25 The following chart summarizes the amount of detail required for Revenue & Expenditure coding. Fund Department Prime Digit Basic Account 500 (Expenditures) 300 (Revenues) 510 310 Sub -Account 514 316 Element 514.20 316.40 Sub -Element 514.23 316.41 Object 514.23.30 Sub -Object 514.23.31 FUND: Used to identify funds created and maintained for a particular purpose. DEPARTMENT: The City uses the optional Department category to differentiate expenses for each individual department. Department Codes are as follows: 0 Revenues 1 Finance 2 Court 3 Police 4 Community Development 5 Public Works 6 Miscellaneous 7 Administration PRIME DIGIT: The first figure in the seven digit account number. If the first digit is: 1 - Indicates an asset account. 2 - Indicates a liability or equity account. It also denotes budgetary and nominal control accounts. 3 - Denotes revenue, non -revenue, or other financing source detail (subsidiary) account. 5 - Is an encumbrance, expenditure, non -expenditure or other financing use detail account. BASIC/SUBACCOUNT: Revenues - The numbers assigned to identify the source (origin or originating category) from which revenues are obtained. Expenditures - The numbers assigned to identify different categories of operations from which expenditures/expenses are incurred. ELEMENT/SUBELEMENT: Revenues - The numbers assigned to further identify specific types of revenues with a particular Basic/Sub category. Expenditures - The numbers assigned to further identify specific types of activities related to the particular Basic/Sub category. Page 26 OBJECT/SUBOBJECT: Revenues - The City does not use object codes for revenues. Expenditures - The numbers assigned to identify expenditures according to the character and the type of items purchased or services obtained. FUND DESIGNATION AND CLASSIFICATIONS The City budget implements Governmental Accounting Standards Board (GASB) Statement 54 Fund Balance Reporting and Governmental Fund Type Definitions to improve financial reporting by providing easily understood fund balance categories and classification. The classifications set-up a hierarchy based primarily to reflect constraints on how the money in the fund can be spent. THE FUND CLASSIFICATIONS ARE: • Nonspendable fund balance includes amounts that are not in a spendable form (inventory, for example) or are required to be maintained intact (the principal of an endowment fund, for example). • Restricted fund balance includes amounts that can be spent only for the specific purposes stipulated by external resource providers (for example, grant providers), constitutionally, or through enabling legislation (that is, legislation that creates a new revenue source and restricts its use). Effectively, restrictions may be changed or lifted only with the consent of resource providers. • Committed fund balance includes amounts that can be used only for the specific purposes determined by a formal action of the government's highest level of decision -making authority. Commitments may be changed or lifted only by the government taking the same formal action that imposed the constraint originally. • Assigned fund balance comprises amounts intended to be used by the government for specific purposes. Intent can be expressed by the governing body or by an official or body to which the governing body delegates the authority. In governmental funds other than the general fund, assigned fund balance represents the amount that is not restricted or committed. This indicates that resources in other governmental funds are, at a minimum, intended to be used for the purpose of that fund. • Unassigned fund balance is the residual classification for the general fund and includes all amounts not contained in the other classifications. Unassigned amounts are technically available for any purpose. If another governmental fund has a fund balance deficit, then it will be reported as a negative amount in the unassigned classification in that fund. Positive unassigned amounts will be reported only in the general fund. The City uses fund accounting to ensure compliance with legal requirements and to assist in the budgeting operations of the different activities of the City. The 2017-2018 budget contains 22 funds. Each fund has a unique purpose. FUNDS: The City maintains budgetary controls over its operating funds. Budgetary controls ensure compliance with legal provisions embodied in the annual appropriated budget. Governmental funds budgets are established in accordance with state law, and are adopted on a fund level. Personnel services are budgeted by position and by prorating the costs based on time allocation to the various funds. Page 27 The City of Port Orchard accounts for and reports its resources in two fund types - Governmental and Proprietary. Governmental funds account for activities associated with the running of the City. These are supported largely by taxes. Proprietary funds account for services to the general public that are, for the most part, financed by user fees and charges for the services provided by the City. GOVERNMENTAL FUND TYPES Port Orchard's governmental funds are divided into the six categories, listed below, to ensure proper accounting and reporting of resources. GENERAL FUND (001-099) The primary fund of the City is the General Fund. It is used to account for all financial resources not accounted for in another fund. Included in the General Fund are Police, Municipal Court, Engineering, Streets, Parks, Building, Planning, Finance, Legislative and Administration. 84% of these services are supported by taxes (Property tax 24%, Sales tax 41% Utility tax 16% and other taxes 1%). Other revenues include Charges for Goods and Services 5%, Fines and Forfeits 2%, Licenses & Permits 3% and Intergovernmental Revenues 5%. In 2017-2018 Miscellaneous Revenues factor about 2%. SPECIAL REVENUES FUND (100-199) These Funds account for revenues that are restricted or committed to expenditure for specific purposes. The City has six Special Revenue Funds that ensure the revenues are used only for activities that meet the requirements dictated by the source of the revenue. B.A.R.S. defines restricted revenues as "resources externally restricted by creditors, grantors, contributors, laws or regulations of other governments, or restricted by law through constitutional provisions or enabling legislation." The definition for committed revenues is "resources with limitations imposed by the highest level of the government, and where the limitation can be removed only by a similar action of the same governing body." DEBT SERVICE FUNDS (200-299) Debt Service Funds account for the City's financial resources that are restricted, committed or assigned to expenditure for principal and interest. The City has one Debt Service Fund. CAPITAL PROJECTS FUNDS (300-399) Acquisition or construction of capital projects are accounted for here. The City has three Capital Project Governmental Funds. The Capital Construction Fund receives transfers from other general funds or revenue from grant proceeds to use on capital projects. The Cumulative Reserve for Equipment Replacement Fund where funds are placed as authorized by Council to use for equipment purchases. The Street Capital Projects Fund is for street projects; revenues from grant dollars and a portion of the fuel tax revenues are placed here. AGENCY FUNDS (600-699): Agency Funds represent assets held in a trustee or agency capacity for others and do not report results of operation. The City has three Agency Funds. The 1984 Refunding Fund is an expendable trust fund to pay outstanding bonds with monies held by the refunding trustee, US Bank. The Trust and Agency Fund collects fees which the Treasurer, acting as intermediary depository, shall distribute to the proper agencies on a regular and timely basis. Examples of these fees include but are not limited to State court fines, County crime victim fines, State building code fees, State concealed pistol licenses and background checks. The Wastewater Treatment Facilities Fee Fund receives facility fees which are collected for the Joint Wastewater Treatment Facility. Page 28 PROPRIETARY FUND / ~ . TYPES Proprietary Funds are used to account for services provided to the public where the majority of the costs are supported by user fees and charges. The City has two Proprietary Funds —VVater Sewer Utility and Storm Drainage Utility. General Fund Funded by: Property Tax, Sales Tax, Utility Tax, Franchise Tax, Fuel Tax, Fees & Grants Legislative & Executive Administrative & Record Services Finance Legal & Judicial Central S—ime. Law Enforcement Building, Planning Forks Special Revenue Funds I Funded by; State Shared Revenue, Hotel/ Motel Tax, Impact Fees, Developers Fees, from other Funds Criminal Justice Tourism Development Projects Debt Funds Capital Projects Funded by: Real Estate Excise Tax REET) Fuel Tax, Granb, & Transfers from other Funds I Capital Facilities Capital Equipment Enterprise Funds Water Capital Projects Sewer Capital Projects Storm Drainage & Flood I Management Capital Projects � � Agency Funds State & Local Pass Through Funds �� FUNDS CITY CURRENT EXPENSE —FUND 001 The Current Expense Fund accounts for all financial resources except those required to be accounted for inanother fund. CITY STREET -FUND 002 City Street Fund isageneral fund that accounts for City street revenue sources, including 95% of the Motor Vehicle Fuel Tax to be used for city street purposes. In 2016 a Transportation Benefit District (TBD) was created implementing a car tab fee to fund street maintenance and repair projects. Revenues from the T0D are deposited into the City Street Fund for projects. Expenses for all other street related operations, maintenance and improvements are coded here aewell. STABILIZATION -FUND 003 A Stabilization Arrangement in an amount of two months of its five year arithmetic mean of General Fund expenditure budget may be maintained annually as resources allow. Funding may come from one time revenues, monthly budgeted amounts from general revenues, and transfers from ending fund balance as authorized by Council resolution. The City Treasurer must quantify, document and present the significance of qualifying event. Authorization for spending stabilization nuoan/eo requires a simple majority vote ofthe City Council. CRIMINAL JUSTICE -FUND 103 In 1900the legislature passed a bill to provide funding for Criminal Justice to local government. These revenues are placed in this account and must be used exclusively for Criminal Justice purposes. SPECIAL INVESTIGATIVE UNIT -FUND 104 This opaou| revenue fund was created to account for monies and property seized during drug investigations per RCVV 80.50.505. Monies paid into the fund are to be used by the Police Department for drug enforcement purposes. COMMUNITY EVENTS -FUND 107 This is a special revenue fund where monies received from Hotel/Motel Transient (Stadium) Tax per RCW 67.28are accounted. These monies are to be used solely for the purpose of paying all or any part of the cost of tourism promotion and acquisition or operation of tourism related facilities. PATHS & TRAILS -FUND 108 The purpose of this fund is to establish and maintain paths and trails for pedeotriann, equestrians or bicyclists as part of streets, roads & highways. Revenues come from the Motor Vehicle Fuel tax. As required by RCVV 47.30.030. no |enn than 0.42 percent of the total amount of funds received will be placed into this fund. These funds maybe held for a period ofnot more than 10 years and are to be expended onthe purposes described above. REAL ESTATE EXCISE TAX /R|EET\—FUND109 Real estate excise tax (REET) is levied on all sales of real estate. This tax is collected by the State of Washington and e percentage is passed on to the City. There are two types ofREETfunds. Each has specific ways in which they may be spent. This fund tracks the receipt and disbursement nfREET 1 and REET 2. According to RCVV 82.40.010(2) REET 1 funding must be used for capital projects identified in the capital facilities plan of the City's comprehensive plan. RCVV 82.48.010(0) defines capital projects as "...those public works projects of a |000| government for p|anning, acquisition, construction, reconstruction, repair, replacement, rehabilitation, or improvement of streets; roads; highways; sidewalks; street and road lighting systems; traffic signals; bridges; domestic water systems; storm and sanitary sewer systems; parks; recreational facilities; law enforcement facilities; fire protection facilities; trails; libraries; administrative facilities; judicial facilities river flood control projects..." The second quarter percent (REET2) must also be used for financing capital projects specified in a capital facilities plan element of the comprehensive plan. With slight differences on what capital projects are eligible. For instance 82.46.035(5) defines REET 2 capital project funds to be used for planning, acquisition, construction, reconstruction, repair, replacement, rehabilitation, or improvement of streets; roads; highways; sidewalks; street and road lighting systems; traffic signals; bridges; domestic water systems; storm and sanitary sewer systems; and planning construction, reconstruction, repair, rehabilitation or improvement of parks. Note that acquisition of land for parks is not a permitted use for REET 2 although it is permitted for street, water and sewer projects. In 2011 legislature expanded the uses of REET both the first and second quarter. Cities may, with restrictions, use REET 1 & 2 for operation and maintenance of existing capital facilities. The maximum amount of either REET 1 or REET 2 that may be spent on a maintenance is the greater of $100,000 or 25% of the available funds, not to exceed $1 million per year. There are additional reporting requirements for using REET 1 or 2 funds for maintenance projects. These reporting requirements must be adopted as part of the city's regular budget process. IMPACT FEE -FUND 111 The Impact Fee Fund establishes separate accounts within the fund and maintains records for each such account whereby impact fees collected can be segregated by type of facility and by service area. All interest is retained in the account and expended for the purposes for which the impact fees were imposed. Impact fee expenditures for system improvements are expended only in conformance with the capital improvement plan. Impact fees are expended or encumbered for a permissible use within six years of receipt, unless there exists an extraordinary and compelling reason for fees to be held longer than six years. Such extraordinary and compelling reasons shall be identified in written findings by the City Council. 2003 LIMITED TAX GO REFUNDING BOND -FUND 206 This is a debt service fund created for the purpose of paying principal of and interest on the 2003 refunding bond in the amount of $3,000,000. The City refunded the 1999 Limited Tax General Obligation Bond that was issued to pay the cost of constructing a new municipal facility. The City has committed to paying this debt using funds from Cumulative Reserve for Municipal Facilities (73%), and Water -Sewer Operating (27%). Outstanding principal is $459,900 on December 31, 2016. CAPITAL CONSTRUCTION -FUND 302 Capital Construction Fund is used for the acquisition or construction of major capital facilities (other than those financed by proprietary funds and trust funds). This fund accounts for grant funding and transfers from other funds (i.e. REET 109) which provide the cash flow to complete the projects. CUMULATIVE RESERVE FOR EQUIPMENT REPLACEMENT -FUND 303 This fund is used to account for financial resources to be used for purchasing and/or replacing Current Expense and City Street capital equipment. STREET CAPITAL PROJECTS -FUND 304 This fund is used to monitor restricted revenues and expenditures for Street Capital Projects. Revenues include the State -levied Motor Vehicle Fuel taxes distributed to the City and street related grant funding. The City utilizes fuel tax revenues as matching funds for grants specified for street capital project purposes. Page 31 WATER SEWER UTILITY -FUND 401 Water Sewer is an enterprise fund used to account for operations that are normally financed and operated in a manner similar to private business enterprises — where the intent of the governing body is that the costs (expenses, including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges. If issued, debt is backed solely by fees and charges and the cost of providing services for an activity must legally be recovered through water and sewer fees or charges. WATER SEWER EQUIPMENT REPLACEMENT -FUND 402 This enterprise fund was created for purchasing and/or replacing Water Sewer equipment. CUMULATIVE RESERVE FOR WATER SEWER -FUND 403 This enterprise fund was created for Water Sewer capital outlay, debt service, and maintenance and operation, into which the revenues received from capital facility charges and fees in lieu of assessment are placed. The purpose of this fund is to build up reserves to be expended for betterments and improvements to the utilities, with debt service and maintenance and operation to be funded as necessary. STORM DRAINAGE UTILITY -FUND 421 Storm Drainage Utility is an enterprise fund used to account for the City's storm drainage operations and surface water management system — where the intent of the governing body is that the costs (including depreciation) of providing services to the general public will be financed or recovered primarily through user charges. If issued, debt is backed solely by fees and charges and the cost of providing services for an activity must legally be recovered through storm drainage fees or charges. STORM DRAINAGE EQUIPMENT REPLACEMENT -FUND 422 This enterprise fund was created for purchasing and/or replacing Storm Drainage utility equipment. STORM DRAINAGE CAPITAL FACILITIES -FUND 423 The purpose of this fund is to build up reserves to be expended for betterments and improvements to the storm drainage utility, with debt service and maintenance and operation to be funded as necessary. 1984 REFUNDING -FUND 621 An expendable trust fund to pay outstanding bonds with monies held by the refunding trustee, US Bank. In 1984, the 1962, 1963, 1973 and 1977 bond issues were refinanced and the money was invested in US Treasury and Agency obligations to match the debt service schedule. The 1977 bond issue is the only remaining debt, with principal of $5,000 and interest of $250 for a total of $5,250 outstanding as of December 31, 2016. The issue will be paid off in 2017 and any money remaining will be transferred and paid into the Water Sewer Operating Fund. TREASURER'S TRUST & AGENCY -FUND 631 This agency fund collects fees which the Treasurer, acting as an intermediary depositary, shall distribute to the proper agencies on a regular and timely basis. Examples of these fees include but are not limited to State court fines, County crime victim fines, State building code fees, State concealed pistol licenses and background checks. Page 32 WASTEWATER TREATMENT FACILITIES FEE -FUND 632 This agency fund receives money from the Joint Venture to repay both Public Works Trust Fund loans. Also deposited into this fund are Wastewater Treatment Facility fees. These dollars are held in trust to mitigate the debt and future construction costs for the Wastewater Treatment Facility. BUDGET PROCESS A biennial appropriated budget is adopted for the general fund, special revenue funds, debt service funds not related to special assessments, and capital projects funds on the modified accrual basis of accounting. Budgets for debt service and capital project funds are adopted at the level of the individual debt issue or project and for the fiscal periods that correspond to the lives of debt issues or projects. There is no difference between the budgetary basis and generally accepted accounting principles. Proprietary funds are budgeted on the full accrual basis for management control purposes only. Appropriations for general and special revenue funds lapse at year-end. BASIS OF ACCOUNTING Basis of accounting refers to the point at which revenues and expenditures/expenses are recognized in the accounts and reported in the financial statements. With accrual accounting, revenue is recognized when earned and measurable (usually evidenced by delivery of goods or services to a customer and issuance of an invoice for same). Expenditures are recognized when the liability is incurred (usually measured by receipt of goods or services rendered). Modified accrual accounting is a hybrid of cash and accrual methods. Revenue is recognized when earned, measurable, and available. Expenditures are still recognized when the liability is incurred. This accounting method is used for the budget process and the audited financial statements. Port Orchard now budgets on a biennial basis. Prior to the first year of the biennium, the Budget process begins with discussions regarding priorities the City faces. Input is received from the public concerning the course the City should chart towards the future. Mayor and Council use this input along with facts and direction from City departments to develop a progression for the upcoming biennial period. In midsummer the Finance Department provides a beginning projection of the next periods revenue expectations. Data used to forecast revenues comes from many different sources. Historical values, trends, economic data are researched with other entities (State of Washington OFM, MRSC, AWC, Kitsap County Assessor), and with City Directors. The data is compiled and reviewed by Finance to provide the best estimates for the upcoming budget period. These calculations are used in concert with the Mayor/Council's goals for the biennium to provide the target for departmental expenditures. In early August the Finance Director provides departments with their budget targets and other pertinent information to help develop their budgets. Departments are also asked to provide a supplemental budget indicating any staffing changes, capital projects or other items that are not included in their regular budget. Department budgets are returned to Finance by the 1st week of September, prior to the beginning of the biennial period, in compliance with RCW 35.33.031. These estimates are submitted to the Mayor for review. The Mayor discusses departmental needs with each director and reviews the budget to provide a balanced preliminary budget recommendation to Council. In accordance with RCW 35A.33.135, on or before the first Monday in October the Mayor submits the preliminary estimated revenues and expenditures to Council. Throughout October, Council conducts budget workshops and study sessions to discuss the budget with departments and allow taxpayer's comments. A public revenue hearing is also held preceding Councils vote on the Property Tax Levy. Page 33 Council makes its adjustments to the preliminary budget and after two public hearings, and prior to December 31st, adopts an ordinance providing the final balanced budget. The adopted budget is published and made available to the public early the following year. The City begins implementing the adopted budget the first day of January following adoption. Directors monitor their expenditures to ensure adherence to the approved budget. The Finance Department also monitors expenditures and provides financial updates to Council and Department Directors. In September of the first year of the biennium a budget review is conducted. Based on the outcome of the mid period review, amendments and/or council hearings may occur to make any necessary adjustments. BUDGET AMENDMENTS The City Treasurer is authorized to transfer budgeted amounts between departments within any fund; however any revisions that alter the total expenditures of a fund or that affect the number of authorized employee positions, salary ranges or other conditions of employment must be approved by City Council. When the Council determines that it is in the best interest of the City to increase or decrease the appropriations for a particular fund, it may do so by ordinance approved by one more than the majority after two readings. Budget amendments are typically expenditures or revenues received that were not planned for or could not have been foreseen during the budget process. CITY REVENUE SOURCES The City has a variety of revenue sources for its Governmental Funds, the largest of these being property tax and sales tax. Other revenue sources are: other taxes, licenses & permits, charges for goods & services, fines & forfeits, and intergovernmental revenues. PROPERTY TAX: The Kitsap County Treasurer acts as an agent to collect property taxes levied in the County for all taxing authorities. Collections are distributed after the end of each month. A City is permitted by law to levy up to $3.60 per thousand of assessed valuation for general governmental services. The City is annexed into South Kitsap Fire District #7 (SKFD). In 2012 the City resident's voted to annex into the Kitsap Regional Library District (KRL). SKFD may levy up to $1.50 per thousand of assessed valuation and KRL is allowed up to $0.50. The difference between SKFD & KRL levies and $3.60 is the City's capacity. Washington State Law, RCW 84.55.010 limits the rate. The 2017 assessed valuation for properties in the City of Port Orchard is $1,532,610,083. The 2017 Property tax levy is $10.9492 per thousand of assessed valuation of which the City receives $1.7611. 2007 2008 2009 2010 2011 726, 921, 614 814,625,858 833,125,854 2.0768 1,509,652 1.8949 1,543,671 1.9488 1,623,607 1,165,037,143 2.1424 1,239,258,364 2.1192 2,495,925 2,626,382 2012 1,192,138,362 1.8477 2,202,693 2013 1,312,770,504 1.7573 2,307,207 Page 34 2014 1,319,792,155 1.6979 2,240,898 2015 1,347,919,629 1.7252 2,325,748 2016 1,405,166,175 1.7493 2,458,008 2017 1,532,610,083 1.7611 2,699,058 • The 2010 increase is due to the McCormick Woods Annexation completed in July 2009 • In 2010 Port Orchard residents approved annexation into the Kitsap Regional Library District. This became effective in 2012, which along with declining property values caused the decrease in revenues. • The 2013 increase is due to the Bethel North Annexation completed April 2012. • The City's Property tax dollars are distributed between the Current Expense Fund and City Street Fund. Council determines actual distribution during the regular budget sessions. 2017-2018 property tax revenues are estimated to be 24% of the General Fund revenues. RETAIL SALES & USE TAX: Sales Tax is collected by the State and distributed to the City. The retail sales & use tax rate inside the City of Port Orchard is 8.7% of all retail sales. Of this amount only 0.84% is received by the City. The amount of sales tax received fluctuates from year to year due to the economy, resident spending and the construction market. Sales tax is one of the top two sources of revenue for the City. For 2017-2018 sales tax represents an estimated 41% of the General Fund revenues. UTILITY TAXES: Utility taxes are levied on the gross operating revenues of public and private utilities within the City's boundaries. State law enables cities to levy utility taxes on natural gas, telephone and electricity in an amount up to 6% of the total charges. Cable TV may be charged an amount up to 5%. The City of Port Orchard does impose utility taxes, but currently does not impose the maximum amount for all categories. A tax is also permitted on solid waste, water, sanitary sewer and storm drainage. No rate limitation exists on this second category of utilities. Port Orchard imposes the maximum allowable amount of 6% for electric and telephone utility tax. The rate imposed for natural gas is 2% in 2017, a rate increase is budgeted in 2018 to increase the amount to 6% for garbage utility tax the imposed rate of tax has remained at 6% since 1975. A utility tax for water and sewer has been at the same rate of 5% since 1970. The storm drainage facility, which began operations in 2009, is also charged at 5%. Federal law permits a franchise tax on cable television of up to 5%. Beginning in 1989, the City imposed a rate of 4%. In 2006, Ordinance No. 016-06 increased the rate to the maximum allowed of 5%. LEASEHOLD EXCISE TAX: This tax is collected by the State on property that is in public ownership which is leased to private parties. These taxes are collected in lieu of property tax for which a public entity is exempt. The State taxes these properties at a rate of 12.84%. Of this, Port Orchard is given 32% of revenues collected for publicly owned properties within City limits. Page 35 GAMBLING TAX: State law permits a variety of gambling taxes. With limitations on gambling in the City of Port Orchard, the collection of such taxes is also limited. Currently, the City does not impose the maximum rate allowed by the State in two out of the four sectors the City collects taxes on. Bingo/ Rai Amusement Games 2% 2% Punchbaard /Pull Tabs ' 10% 3% Card Room ADMISSIONS TAX: State law provides for a tax of up to 5% on admissions. Ordinance No. 039-07 set the tax at the maximum 5%, beginning in 2008. REAL ESTATE EXCISE TAX (REET): The real estate excise tax is levied on all sales of real estate. The tax is measured by the full selling price including the amount of any liens, mortgages, and other debts given to secure the purchase. The City receives REET funding from the State in two categories. REET 1 (a quarter percent of the Real Estate Excise Tax) funding is restricted in its uses, usually only for Capital Projects. REET 2 also may only be used for Capital Projects; however, this funding may not be used for the acquisition of land for parks. LICENSES & PERMITS The largest source of revenue in this category is building permits. Building permit revenues fluctuate depending on the economy and sales of new homes. INTERGOVERNMENTAL REVENUE Intergovernmental revenues include liquor revenues, fuel tax, marijuana tax, grants and miscellaneous interlocal agreements. 1-1183 was approved by voters, privatizing liquor sales in the state. In general, liquor taxes remain and local governments continue to receive revenue from the liquor markup (the primary source of revenue for liquor profits) has ended. However, the initiative provides annual license fees for distributors and retailers, a percentage of which is distributed to cities. For 2017 the per capita projection is $8.45 for liquor board profits and $4.67 for liquor tax. Liquor profits are now revenues received for licensing fees from distributors and retailers. The State levies a tax per gallon on motor vehicle fuel. Cities receive a percentage of the tax levied by the State based on a state formula per capita. These revenues are restricted in use for street related expenses. In 2017-2018 biennium the City of Port Orchard estimates it will receive $605,707 in fuel tax revenues. Of this amount 0.42% is required to be set aside for paths and trails. The remaining balance Page 36 will have 95% utilized in the City Street operations and the remaining 5% will be placed in the Street Capital Projects Fund to use as a local match for grants. HB 2136 Marijuana -Reforms -Taxation provides revenue sharing of the Marijuana Excise Tax. Per MRSC the formula for distribution is as follows: • 60 percent is distributed to counties that have not prohibited the sale, production or processing of marijuana. The distribution amount allocated to each county, including the portion for eligible cities within the county, is ratably based on the total amount of taxable sales of marijuana products subject to the marijuana excise tax in the prior fiscal year within the county, including all taxable sales attributable to the incorporated areas within the county. • After making any distribution to the counties, the state treasurer must distribute the remaining amount to eligible cities within the counties. The share to each eligible city within a county must be determined by a division among the eligible cities within each county ratably based on total retail sales from the prior fiscal year • Beginning in FY 2018, if marijuana excise tax collections deposited into the general fund in the prior year exceed $25 million, then the legislature must appropriate an amount equal to 30% of all marijuana excise taxes deposited into the general fund to be distributed to counties & cities. FEDERAL GRANTS The City of Port Orchard applies for and is awarded grants to fund specific projects or activities. These grants have different requirements for local agency funding. This is commonly referred to as a grant match. Below is the list of grants that are budgeted in 2017-2018. US DEPARTMENT OF TRANSPORTATION / WSDOT - BAY STREET PEDESTRIAN PATHWAY The Bay Street Pedestrian Pathway project started with a "no -match required" $300,000 Enhancement grant to design/permit a 1-mile long multi -use (bike/pedestrian) pathway between Kitsap Transits' Downtown Foot Ferry and the Annapolis Dock Foot Ferry facilities. This project has progressed over the years, 100% plans, specifications & estimates (PS&E) and permitting completed in 2012, and in 2013 partnerships with the Port of Bremerton and State grant funding administered by the Department of Commerce constructed segments 2 and 5 of the path. In 2014 the city was awarded WSDOT / FHWA funding for the overall pathway easement and right-of-way acquisition phase. This funding requires a 13.5% local funds match. In 2015 the City completed segment 4, Blackjack Creek Bridge, with state grant funding. The 2016 right of way properties were purchased. The 2017-2018 budget continues funding for Right of Way purchases as the City moves forward with the ROW project. US DEPARTMENT OF TRANSPORTATION / WSDOT - TREMONT STREET WIDENING PROJECT This WSDOT pass through grant will widen Tremont Street to provide four continuous lanes between Port Orchard Blvd and SR 16. Two existing signalized intersections within the project have been designed as roundabouts at South Kitsap Blvd and Pottery Ave. In addition to providing roadway widening and aesthetic improvements, this will provide curb, gutter, and sidewalks along both sides of the road; intersection modifications; improvements to storm drainage facilities; traffic signal and illumination upgrades; retaining walls and bike path. In 2017-2018 the City has budgeted $9,596. These funds are budgeted in the Street Capital Projects Fund. Page 37 STATE GRANTS WA STATE RECREATION He CONSERVATION OFFICE (RCO) — MCCORMICK VILLAGE PARK The City will use the remainder of this grant in 2018 to construct Phase II of the McCormick Village Park, a partially developed 30 acre park. Improvements include: completion of multi -use perimeter loop trail with pedestrian bridge, entry plaza; children's playground; wetlands boardwalk with interpretive signs; wetlands viewing platform; and other improvements. The grant award is $385,500 with the City providing an additional $385,500 match for this multiyear project. This project is budgeted in the Capital Construction Fund. WA STATE TRANSPORTATION BUDGET — BAY STREET PEDESTRIAN PATH The City will utilize $480,000 of a $3.5 million award from the state transportation package in 2017 to construct Segment 3 of the pathway. $20,000 of the $3.5 million was utilized in 2016. CHARGES FOR GOODS AND SERVICES The Charges for Goods and Services category is comprised of user fees for services and activities provided by the City. In the General Fund the Charges for Goods and Services category includes Municipal Court related fines, penalties and other fees, building plan reviews, zoning and developer's fees and law enforcement services. These activities bring 5% of General Fund incoming revenues. The City's Proprietary funds, however, are funded almost exclusively on user fees. Charges for Goods and Services comprise 54% of the new revenues for the Water Sewer Utility and 98% for Storm Drainage Utility. MISCELLANEOUS REVENUE Miscellaneous revenues generate 2% of the City's incoming revenues. Investment income, parking and rentals are the largest items in this category. In recent years the investment income category has fluctuated due to interest rates and less revenue available for investment. DEBT The City of Port Orchard's legal debt limit, including voter -approved debt, is approximately 38.3 million. The City's Debt Policy is located in the "Financial Policies" section of the Budget Document. In 2014 the City was awarded a low interest federal loan from the Drinking Water State Revolving Fund to design and construct Well 10. This is a reimbursement based loan of up to six million dollars. During the initial 48 month period from contract execution to project completion, the City may draw on the loan to design and construct the well. Construction of the well must be complete at the end of the 48 month period. The total cost of the well project (a maximum amount of six million dollars) becomes a 20 year loan with annual principle and interest payments beginning one year after the project completion date. In the 2017-2018 fiscal period the city has budgeted $5,000,000 for the Well 10 project. In 2016 the Washington State Department of Ecology awarded the City $1,015,000, in a combined financial assistance package, to construct a storm drainage decant station. This is a mixed package of grant and loan funding. The loan, in the amount of $253,750, is a low interest, federal, State Revolving Fund loan payable over 20 years. This loan provided the local match for the grant. Repayment is expected to begin in the 2017-2018 fiscal period. Page 38 G.O. BOND A City issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. Currently the City of Port Orchard has $682,650 in general obligation bonds outstanding on December 31, 2016. General obligation bonds are direct obligations and pledge the full faith and credit of the government. These bonds generally are issued as 20-year serial bonds with equal amounts of principal maturing each year. General obligation bonds are either created by 3/5 majority vote of the people and, therefore, financed by a special tax levy; or created by ordinance, adopted by the City Council, and normally financed from general revenues (councilmanic bonds). The City's Non -voted general obligation bonds are as shown below: 2003 LTGO Bond -City Hall Capital project 3,000,000 12/1/2019 2%-3.8% $ 682,650 The City provides for cash to fund current debt service requirements as a part of the budgeting process. Annual debt service requirements to maturity for general obligation bonds are as follows: —267-__ _w 2019 Principal 459,900 45 Total Interest Requirement 34,626 494,526 All bond issues comply with arbitrage regulations. Total Principal Interest Requirement 170,100 12,806 182,906 NOTES In November of 1998 a promissory note was entered into for the purchase of the McCormick Water Company. This note is repaid with new McCormick water connection fees as the revenue source. $700 on each of the first 550 connections will be paid to McCormick Water Company after that $225 shall be paid on the 551st through the 800th water connection. Payments are made no less frequent than quarterly. This type of note does not have a repayment schedule. Original Issuance Maturity Interest Debt Name Amount Purpose Date Date Rate Outstanding McCormick Note $441,250 Capital 11/23/1998 N/A 0.00% $168,250 JOINT VENTURE JOINT WASTEWATER TREATMENT FACILITY In 1983, the City of Port Orchard and West Sound Utility District (previously the Karcher Creek Sewer District) amended an intergovernmental agreement relating to the construction and management of the secondary Wastewater Treatment Facility. This Joint Venture establishes the Sewer Advisory Committee (SAC) consisting of three representatives from each entity who prepare and monitor the Facility's budget, after the City and District each adopt it. The District and the City share 50/50% ownership in the Facility's total assets. For the annual report, in accordance with the generally accepted accounting principles, the Page 39 proportional shares of the Joint Venture's results of operations are presented as a single operating account on the City's proprietary fund's operating statement — Investment in Joint Venture. The Utility District is responsible for the daily operation of the facility. The participants pay their share of the expenses based on their portion of flow into the facility. The City and the District pay the Joint Venture, an amount determined during the budget process, monthly to cover maintenance, operation, capital improvements, and debt. The current cost sharing is 48% City and 52% District. Construction of the Joint Wastewater Treatment Facility Expansion began in 2004. Although both of the Public Works Trust Fund Loans for the Facility's expansion were issued in the City of Port Orchard's name, these loans are secured by the assets of the Facility and the revenues of the Facility are used to make the debt service payments. With a combined outstanding debt of $6,195,570 at the end of 2016, these loans will not be retired until 2022 and 2024. The Facility makes an annual payment to the City to cover the debt service on these loans. The SAC recommended and the City Council and the District Commissioners approved using a portion of Wastewater Treatment Facility Fees collected by each jurisdiction for the plant to help make the annual debt payments. This cost sharing formula is 50% for each entity. Public Works Trust Fund Loan 1 Loan 2 Capital $10,000,000 2/29/2004 7/1/2022 0.50% $3,315,570 Capital 6,800,000 6/30/2005 7/1/2024 0.50% $2,880,000 West Sound Utility District maintains separate accounting records and prepares separate financial statements of the operations of the Joint Wastewater Treatment Facility. Page 40 �� POLICIES � U�������~U��U ��0 D��D���� ��UU����U���U��^�� �~~»_��-U��U�_�� ADOPTION OF POLICES The City Council adopted e comprehensive set ofFinancial Polices on Auguot28. 2012. These policies address revenue, expendUures, operating budged, capital management, accounting debt, cash management, inwaatmento, and omoen*ss. Adopted financial policies have many benofito, such as assisting the elected officials and staff in the financial management of the Qty, saving time and energy when discussing financial matters, engendering public confidence, and providing continuity over times as a|aotad officials and staff members change. While these policies will be amended pahodioaUy, they will provide the basic foundation and framework for many of the issues and decisions facing the City. The policies are written to promote sound financial management and assist inthe Cib/oatabi|ity. efficiency, and effectiveness. The City's financial goals seek to anauna the financial integrity of the City manage the financial assets in a sound and prudent manner; improve financial information for decision makers at all levels; maintain and further develop programs to ensure the long-term ability to pay all ouahn necessary to provide the |ava| and quality ofservice required by the citizens; and maintain a spirit of openness and transparency while being fully accountable to the public for the City'afiooa| activities. The policies are available to the public via the City's website. REVENUE POLICY The City structures a revenue system that will assure a ra|iab|e, equitab|e, diveroified, and sufficient revenue stream to support desired City services. Current expenditures are to be funded by current revenues. Budgeted revenues are estimated conservatively using accepted standards and estimates provided by the sbata, other governmental agencies or reliable economic forecasters when available. General Fund and other unrestricted revenues will not be earmarked for specific purpooeo, aoUviUaa, or services unless otherwise authorized by City Council or required by law, or generally accepted accounting pnactioes(GA\P). If revenues from "one-time" orlimited duration sources are used to balance the City's annual operating budget, it is to be fully disclosed and explained at the time the budget is written. It is the Cit/agoal tonot na|y on these types of revenues to balance the operating budget. Enterprise and |nhnnna| Service operations are tobeoe|f-suppurting. Grant funding for programs nritems which address current priorities and policy objectives should beconsidered tnleverage City funds. RESERVE POLICY The City recognizes the importance of maintaining a reserve account to meet unanticipated needs and tn fund emergency expenditures. If reserve account in nonexistent or low, there is concern by bond rating agencies about the entity's ability to make payments in times of economic downturn. Onthe other hand, if reserve in too high, there is concern that the entity is not using its resources adequately. Maintaining an adequate reserve is an essential component of cash management and good fiscal practice. The City's established reserve policy for the General Fund strives tomaintain atwo tier reserve structure. The policy substantiates an undanignab*d Gonono| Fund ending fund balance of at least five percent of months ofits five year arithmetic mean of General Fund expenditure budget maintained annually as resources allow. Funding may come from one time ravanuao, monthly budgeted amounts from general rovanueo, and transfers from ending fund balance aoauthorized by Council resolution. Authorization for spending stabilization reserves requires a simple majority vote of the City Council. CASH MANAGEMENT AND INVESTMENTS POLICY City funds are required to be managed in a prudent and diligent manner with an emphasis on safety of principal, liquidity to meet cash flow naquinemente, and financial return on principal (yia|d), in that order. Investable ba|enmao are held in the Local Government Investment Pool (LG|P) or the Kitsop County Treasurer local government investment pool. The LG|Pioaninvestment vehicle maintained bythe Office of the State Treasurer to help local governmental entities achieve higher rates of return by pooling local funds for economy ofscale. The Kitoap County pool is invested in a||ovvab|a investments authorized by the Revised Coda of Washington. Both investment pools are tnanopanant, easily aooeooib|e, and highly stable. ExPENDITURE POLICY The City oaako to identify priority aenioao, establish appropriate service |ave|o, and administer the expenditure of available resources to assure fiscal stability and the effective and efficient delivery of services. The City strives to adopt an annual balanced budget for the General Fund in which current expenditures do not exceed current projected revenues. Capital expenditures may befunded from one- time revenues. The City Council may approve a short-term interfund loan or use of one-time revenue sources to address temporary gaps in cash flow, although this will be avoided if possible. DEBT POLICY The use of bonds or certificates of participation will only be considered for significant capital and infrastructure improvements. The City will not use long-term debt topay for current operations. The term of the debt may not extend beyond the useful life of the improvements being financed. The general policy of the City is to establish debt repayment schedules that use level annual principal and interest payments. The City strives tomaintain its bond rating at the highest level fiscally prudent, sothat future borrowing costs are minimized and access tothe credit market is praoanxsd. The City encourages good relations with financial bond rating agencies and is directed to follow a policy of full and open disclosure. The complete text ofPort Omhend's financial policies can beaccessed at: CITYWIDE REVENUES & EXPENDITURES The information below reflects the Citywide Operating Revenues and Expenditures, providing cumulative information from all City Funds. CITYWIDE OPERATING REVENUES: The Chart below displays the projections for new revenues, by source, which the City estimates to receive in 2017-2018. These revenues allow the City to operate in its best capacity to serve the Citizens. The largest source of Fines & Forfeits incoming revenues are taxes 1% (34%) which help operate the general governmental areas of the City. Charges for Goods intergovt. and Services are the next Revenues largest piece of the pie at 28%. 5% These are comprised mainly of Licenses & utilityfees for the Water Sewer Permits -1% and Storm Drainage Utility funds. CITYWIDE OPERATING EXPENDITURES: This chart contains the breakout by percentage of cost allocations 2017-2018 Estimated Uses Debt Service 1% Interfund Transfers 20% Supplies 3% 2017-2018 Estimated Finance Sources Misc. Revenues 2% Capital Contribution 1% Operating Transfers 20% throughout the City. The top three are Personnel Costs (Salary and Benefits) at 33%; Interfund Transfers (20%) for capital projects; and Capital Outlay (18%) which includes acquisitions or additions to capital assets. Next at 14% are Services which includes Professional Services, Repairs & Maintenance, Rents & Leases; Intergovermental Services at 11%, Supplies at 3%, & debt service at 1%. Page 43 SUMMARY OF REVENUES General Fund Current Expense Stabilization Special Revenue Funds Criminal Justice Special Investigative Unit Community Events Paths & Trails Real Estate Excise Tax Impact Fee Capital Construction Funds Capital Construction Cumulative Reserve for Equipment Replacement Street Capital Projects Proprietary Funds EIZEILECI Water Sewer Equipment Replacement Cumulative Reserve for Water Sewer Storm Drainage Utility Storm Drainage Equipment Replacement Storm Drainage Capital Facilities Debt Service Funds 2003 Limited Tax GO Refunding Bond 1984 Refunding 001 00 17,265,824 003 03 104 07 08 4,110,929 700,036 940,052 105,438 211,624 3111 109 IIII 2,450,020 302 303 304 401 402 403 421 422 423 4,934,681 785,970 1,944,224 53,046,816 3,099 1,136,187 11,690,457 5,757 18,539,550 5,423,573 1,265,380 1,191,845 113,820 240,120 9,700 3,849,260 1,957,280 3,294,000 976,870 6,962,659 18,956,400 626,930 11,987,700 5,140,983 550,880 206 621 332,779 16,950 991,020 329,777 15,550 21,198,624 3,900,635 811,900 1,055,400 68,500 270,500 7,780 2,307,200 1,611,000 1,237,450 476,687 3,015,798 25,373,700 318,700 9,190,000 3,926,000 215,720 547,440 331,610 5,250 Page 44 SUMMARY OF EXPENDITURES General Fund Current Expense - Administration 001 Current Expense- Finance Current Expense -Judicial Current Expense - Law Enforcemen Current Expense - Community Development Current Expense - Public Works Current Expense - Parks & Recreation (PW) Current Expense- Reserves & Fund Balance City Street Stabilization 002 003 1,639,959 1,979,359 ,051,723 1,463,824 999,795 1,168,858 7,762,312 9,046,363 1,355,162 1,994,375 1,346,665 1,229,787 385,056 624,894 2,705,996 2,776,100 4,104,251 5,423,573 700,037 1,265,380 2,143,026 ,593,477 1,249,808 9,764,020 2,618,860 1,098,728 746,595 984,110 3,900,635 811,900 Special Revenue Funds Criminal Justice 03 940,059 1,191,845 ,055,400 Special Investigative Unit 104 103,438 113,820 68,500 Community Events 107 211,624 240,120 270,500 Paths & Trails 08 5,372 9,700 7,780 Real Estate Excise Tax 109 3,849,260 2,307,200 Impact Fee 2,450,020 1,957,280 1,611,000 Capital Construction Funds Capital Construction 302 4,934,681 3,294,000 ,237,450 Cumulative Reserve for Equipment Replacement 303 785,970 976,870 476,687 Street Capital Projects 304 ,944,224 6,962,659 3,015,798 Proprietary Funds Water Sewer Utilities 401 8,275,399 18,956,400 25,373,700 Water Sewer Equipment Replacement 402 626,930 318,700 Cumulative Reserve for Water Sewer 403 682,368 11,987,700 9,190,000 Storm Drainage Utility 421 21,372,955 5,140,983 3,926,000 Storm Drainage Equipment Replacement 422 550,880 215,720 Storm Drainage Capital Facilities Fund 423 991,020 547,440 Debt Service Funds 2003 Limited Tax GO Refunding Bond 206 332,779 329,777 331,610 1984 Refunding 621 16,931 15,550 5,250 Page 45 BY CATEGORY ;;;(Citywk e)', General Fund Current Expense 001 1,806,400 16,356,035 671,800 513,500 1,048,350 444,000 358,539 - 21,198,624 City Street 002 900,000 2,437,835 2,000 533,000 4,000 - 23,800 - - 3,900,635 Stabilization 003 669,700 - - - - - 2,200 - - 140,000 811,900 Special Revenue Funds Criminal Justice 103 485,200 373,700 - 194,500 - - 2,000 - - - 1,055,400 Special Investigative Unit 104 60,400 - - - - 7,700 400 - - - 68,500 Community Events 107 80,000 190,000 - - - - 500 - - - 270,500 Paths & Trails 108 5,200 2,580 7,780 Real Estate Excise Tax 109 1,040,000 1,250,000 - - - - 17,200 - - - 2,307,200 Transportation Impact 111 1,118,000 - - - - - 493,000 - - - 1,611,000 Capital Construction Funds Capital Construction 302 275,000 - - 323,000 - - 1,000 - - 638,450 1,237,450 Cumulative Reserve for Equipment Replacement 303 378,800 - - - - - 3,300 - - 94,587 476,687 Street Capital Projects 304 700,000 - - 1,416,198 - - 9,600 - - 890,000 3,015,798 Proprietary Funds Water Sewer Utilities 401 1,800,000 - - - 12,806,500 201,300 115,900 - 5,000,000 5,450,000 25,373,700 Water Sewer Equipment Replacement 402 315,400 - - - - - 3,300 - - - 318,700 Cumulative Reserve for Water Sewer 403 4,600,000 - - - - - 31,000 559,000 - 4,000,000 9,190,000 Storm Drainage Utility 421 600,000 - 2,000 - 3,248,200 47,800 3,000 25,000 - - 3,926,000 Storm Drainage Equipment Replacement 422 150,500 - - - - - 220 - - 65,000 215,720 Storm Drainage Capital Facilities 423 296,900 - - - - - 540 - - 250,000 547,440 Debt Service Funds 2003 limited Tax GO Refunding Bond 206 331,610 331,610 1984 Refunding 621 550 4,700 5,250 so 06 4r 'O 94 Page 46 P N IITUR ES General Fund Current Expense -Administration 001 801,747 18,715 1,124,720 197,844 - - - - - 2,143,026 Current Expense - Finance 1,052,417 112,550 343,610 17,400 67,500 - - - - 1,593,477 Current Expense -Judicial 1,127,202 15,050 107,556 - 1,249,808 Current Expense - Law Enforcement 7,171,824 276,150 273,000 2,027,830 - - 15,216 - - 9,764,020 Current Expense - Community Development 2,068,960 30,800 419,100 100,000 - - - - - 2,618,860 Current Expense - Public Works 208,108 14,400 876,220 - - - - - - 1,098,728 Current Expense - Parks & Recreation (PW) 482,975 42,100 221,520 - - - - - - 746,595 Current Expense - Reserves & Fund Balance 1,011,000 973,110 1,984,110 City Street 002 1,624,135 203,200 1,411,420 - 21,600 - - 69,587 570,693 3,900,635 Stabilization 003 811,900 811,900 Special Revenue Funds Criminal Justice 103 281,422 38,000 6,000 - 288,405 - - - 441,573 1,055,400 Special Investigative Unit 104 1,500 5,000 62,000 68,500 Community Events 107 24,000 - 190,000 - - - - - 56,500 270,500 Paths & Trails 108 7,780 7,780 Real Estate Excise Tax 109 - - - - - - - 618,360 1,688,840 2,307,200 Transportation Impact 111 100,000 395,700 1,115,300 1,611,000 Capital Construction Funds Capital Construction 302 - - - - 961,450 - - - 276,000 1,237,450 Cumulative Reserve for Equipment Replacement 303 25,000 451,687 476,687 Street Capital Projects 304 - - - - 1,627,975 1,387,823 3,015,798 Proprietary Funds Water Sewer Utilities 401 3,194,395 822,300 2,848,230 4,165,360 7,860,200 112,050 10,600 4,000,000 2,360,565 25,373,700 Water Sewer Equipment Replacement 402 - - - - - - - - 318,700 318,700 Cumulative Reserve for Water Sewer 403 - - - - - - - 5,450,000 3,740,000 9,190,000 Storm Drainage Utility 421 1,249,878 97,800 541,193 223,500 41,600 24,876 - 315,000 1,432,153 3,926,000 Storm Drainage Equipment Replacement 422 - - - - - - - - 215,720 215,720 Storm Drainage Capital Facilities 423 - - - - - - - - 547,440 547,440 Debt Service Funds 2003 Limited Tax GO Refunding Bond 206 331,610 331,610 1984 Refunding 621 5,250 5,250 pos 47 Page 47 FUND BALANCE CHANGES Beginning fund balance is the projected amount of money at the beginning of the fiscal period. Expenditures made and revenues received result in the ending fund balance. The City strives to maintain a minimum amount of fund balance for cash flow purposes. Revenue inflows fluctuate and fund balance provides consistency to meet expenses and keep City operations moving forward. Amounts in excess of minimums required for cash flow purposes may be set aside as reserves or used to fund expenses the City did not anticipate when it adopted the budget. The table below represents budgeted fund balances for 2017-2018. 00 002 003 03 04 07 08 09 1 302 Current Expense City Stree Stabilization Criminal Justice Special Investigative Uni Community Events Paths & Trails REET Fund mpact Fees Capital Construction Fund 1, 625,000 900,000 669,700 485,200 60,400 80,000 5,200 1, 040, 000 1,118, 000 275, 000 -55% -37% 21% -9% 3% -29% 50% 62% 0.24% 0% 303 Cumulative Reserve for Equipment Replacemnt 378,800 19% 304 40 Street Capital Projects Fund Water Sewer Utility 700,000 1,800,000 98% 31% 402 403 42 422 Water Sewer Equipment Replacement Water Sewer Cumulative Reserve Storm Drainage Utility Storm Drainage Equipment Reserve 315,400 4,600,000 600,000 150,500 832.153 65,220 423 Storm Drainage Capital Facilities Fund 296,900 250,540 547,440 1% -19% 139% 43% 84% Some of the significant increases and decreases are explained as follows: • Current Expense Fund decreases largely due to a funds transfer to the Capital Construction Fund and Stabilization Fund. • The City Street Fund also decreases due to a multiyear study and new projects. • Stabilization Fund will increase with the transfer from Current Expense. • Criminal Justice Fund reduces with the purchase of Police vehicles/equipment. • Special investigative Unit is up slightly. • Paths and Trails ends the period with a higher fund balance due to fuel tax revenue. • The City's REET fund will increase with only one project to receive REET funds in 2018. • Impact Fee Fund decreases slightly because of transfers to other funds for projects. • The Capital Construction fund will experience very little change this biennium. • Cumulative Reserve for Municipal Equipment increases this period due to a transfer from the City Street Fund. • Street Capital Projects fund balance increases from a Current Expense Fund transfer for projects. • Water Sewer experiences an increase with funds transferred from the Water Sewer reserve account for projects. • Water Sewer Cumulative Reserve decreases by 19% due to transfers to the Water Sewer Utility for projects. • Storm Drainage Utility fund balance increases significantly over this period creating a balance for future projects. • Lastly, Storm Drainage Equipment Reserve and Capital Facilities Reserve expect to increase with funding transferred from the Storm Drainage Utility to be set aside for future projects and equipment purchases. Page 48 Ma Council Total Legislative City Clerk Deputy Clerk Office Assistant II Total Administration City Treasurer Assistant Treasurer PERSONNEL LIST 7 7 7 8 8 8 1 1 1 1 1 1 0 0.80 1 1 Accounting Assistants II .................. Accounting Assistants III .. Human Resources Coordinator LAN Tech/IT Manager IT Support Specialist Total Finance/IT/HR _ w City Development Director Administrative Assistant Planning Office Manager/PermitCoord Associate Planner Long Range Associate Planner Code Enforcement Building Inspector Building/Planning Office Assistant 1 0.75 Permit Clerk 0 Total Community Development 6.75 8.35 2.8 3.0 3.0 1 1 0 0.0 4 _....._....4 4 2 2 2 1 1 1 1 1 1 0 0 0.5 0.5 10.0 10.0 10.5 0.5 1 1 1 0 Judge Court Administrator Lead Clerk Court Clerks Total Judicial Chief of Police 6,563 6,727 1,000 1,000 6,852 8,144 4,538 5,396 3,794... 4,511 9,539 11,339 7,110 8,452 4,297 5,106 4,914 5,840 6,287 7,473 5,656 6,723 5,500 6,536 9,147 10,873 0.35 0.70 0.35 4,370 5,195 4,781 5,682 5,474 6,508 6,280 7,464 5,134 6,103 5,320 6,325 3,590 4,266 1 1 4,404 5,236 9.70 1.35 • 1 1 1 7,532 7,721 7,287 8,665 0 1 1 0 4,117 5,152 3.6 2.6 2.6 0 3,399 4,349 2 5.2 5.2 1 1 Commander 1 1 Sergeant 3 3 Office Manager 0 1 Records/Evidence Manager 1 0 0.0 0 10,048 11,945 8,819 10,484 7,245 8,208 0 4,862 5,890 3,947 4,846 Records/Evidence Specialist 2.35 2.25 2.25 _.._.__._-....._.___..-__.__-_------------------------------------ ------- ------------------- Public Service Officer Part Time 0.75 0.75 0.75 0 3,494 4,499 0 4,479 5,325 Parking_Enforcement Officer 1 1 1 Patrolmen 18 18 18 Total Police Department WY __- 28.10 28.00 28.00 0.00 Public Works Director/City Engineer 1 1 1 0 4,072 4,838 4,862 6,829 9,577 11,385 Assistant CitywEngineer 1 1 1 0 Stormwater Program Assistant 0 1 0 -1 GIS Specialist/Devel. Review Asst 0 1 1 0 Public Works Office Manager 1 1 1 0 7,821 9,299 5,110 6,191 5,862 6,970 4,781 5,682 Public Works Office Assistants I 1.5 1.6 0.6 -1 Public Works Foreman 1 1 1 0 Public Works Supervisor/Water ys Mgr. 0 0 1 City Mechanic City Electrician PW Crew Water SystemCoordinator_FW Crew Storm Water Program Manager Stormwater Employee (PW Crew Parks Maintenance 1 1 1 0 3,590 4,266 6,266 6,423 6,438 7,650 4,921 5,621 1 1 1 0 9 8 0 1 0 0 2 Parks Maintenance (Summer Help) 0.5 Total Public Works 19.0 4,921 5,621 8 0 1 0 3,943 5,456 4,675 5,783 5,626 6,687 4,675 xxmm 5,783 3,943 5,456 1,907 1,993 Page 49 Mayor Council (7) 54,773 84, 000 SALARY SCHEDULE 2,888 6,444 6,444 80,549 84.000 City Clerk Deputy Clerk Office Assistant I 44,019 26,411 13,206 4,402 88,038 38.511 11,849 5.925 2,962 59,247 42,140 1,405 2,341 936 46, 822 City Treasurer Assistant Treasurer 58,788 32,659 26,128 13,064 130,639 27,406 30,057 17,680 13,260 88,403 Treasurer's Accounting Assistants (6) 107,485 45,849 29,979 69,860 353,174 LAN Tech 61, 213 11, 698 3,605 3,605 80,122 IT Specialist 32,180 6,150 1,895 1,895 42,120 Human Resources Coordinato 73,634 6,136 4,383 3,506 87, 659 Public Works Director/City Engineer Assistant City Engineer 19,313 57,940 45,065 6,438 128,756 3,082 9, 246 77,052 13,356 102, 736 Public Works Supervisor/ Water Sys. Mgr. 4,692 53,174 6,256 14,076 78,198 Public Works Office Manager Public Works Office Assistants (0.6) 17,533 23,377 11,689 5,844 58,443 11.361 11.361 2.840 2.840 28.403 Public Works Foreman 18,842 8,842 18,842 18,842 75,369 City Mechanic Electrician 36.723 15.357 8, 680 6, 009 66.770 4,358 57,790 2,048 2,071 66,267 Laborers (8) 18, 321 296, 230 164, 066 48, 610 527, 226 Parks Maintenance (2FT, 2Summer,2Seasonal)) 128,286 14,231 28,406 3,670 174,593 City Development Director 112,722 112, 722 Office Manager/Permit Coordinator 67, 995 67, 995 Associate Planner (3 231,645 231,645 DCD Office Assistant I (Front Desk) 46,233 46,233 DCD Administrative Assistant 39,879 39, 879 Permit Clerk 45,49 5887.02 1070.37 1070.37 53, 518 Code Enforcement 71, 429 71,429 Building Inspector Judge Court Administrator 74.048 74,048 99.079 99.079 102,288 102,288 Court Clerks (3.60) 175.387 175, 387 Total General Governmen ,952,859 848,538 477,600 242,763 3,521,760 Chief of Police 135, 732 135.732 Commander 127,592 127, 592 Sergeant (3) 308,083 Office Manager 70,234 Records/Evidence Specialist (1 FT 2 Pr) 116,660 308,083 70, 234 116,660 Public Service Officer Part Time 46.940 46, 940 Parking Enforcement Officer (2 PT) 53,864 53, 864 Patrolmen (18) 1,393 540 85, 579 , 479,119 Total Police Departmen 2,252,644 85,579 2, 38,22 Water System Coordinator 1401 48, 386 6, 239 13, 811 69, 837 GIS Specialist/Development Review Asst Stormwater Program Manager Stormwater Crew 37,917 18,958 18,958 75,834 69,135 69,135 1,523 2,723 6,244 50,568 71,058 Total Other De • a rtm a nta l iGrandgTea 2,924 0 99,026 31,441 152,472 285,864 Page 50 SALARY SCHEDULE 56,416 13,274 6,637 6,637 82,969 84.000 84, 000 City Clerk 45,340 27,204 13,602 4, 534 90,680 Deputy Clerk 41, 207 12, 679 6, 339 3,170 63,398 Office Assistan 45, 090 1,503 2, 505 1, 002 50,103 City Treasurer 54,110 30,061 24,049 2,024 120,245 Assistant Treasurer 29, 050 31, 860 18, 741 4,056 93, 712 Treasurer's Accounting Assistants (6) LAN Tech 112,112 151,880 31,381 72,539 367,930 63,202 12,078 3,723 3,723 82,727 IT Specialist Human Resources Coordinator 34,271 6,549 2,019 2,019 44,646 75, 843 6, 320 4.514 3, 612 90, 292 Public Works Director/City Engineer Assistant City Enginee 20.472 61.417 47.769 6,824 136,486 3.175 9, 524 79.364 13, 756 105, 820 Public Works Supervisor/ Water Sys. Mgr. 4,833 54,770 6,443 14,498 80,545 Public Works Office Manager Public Works Office Assistants (0.6) 18848 25,130 12, 565 6283 62,829 12,014 12,014 3,004 3,004 30,039 Public Works Foreman 19,455 19,455 19,455 19,455 78,336 City Mechanic 38, 202 15, 976 9, 030 6, 252 69,460 Electrician 4, 500 59,668 2,114 2,139 68,949 Laborers (8) 18,945 318,743 169,907 50,248 555,086 Parks Maintenance (2FT, 2 Summer, 2 Seasonal)) 133,127 14,777 29,498 3,821 182,275 City Development Director Office Manager/Permit Coordinator Associate Planner (3 FT) 120, 331 120,332 70, 036 70,036 241,975 241,975 DCD Office Assistant I (Front Desk) 49,008 49, 008 DCD Administrative Assistant 42.371 42, 372 Permit Clerk 48.220 6240.2412 1134.592 1134.592 56, 733 Code Enforcement 71,429 71,429 Building Inspector 78,676 78,676 Judge 90,000 90,000 Court Administrator 96,447 96,447 Court Clerks (3.60) 187,271 187,271 Total General Govern en 2,009,976 891,124 493,793 250,729 3,644,80 Chief of Police 140,143 140,143 Commande 131.738 131, 738 Sergeant (3) Office Manager 318.097 72.517 Records/Evidence Specialist (1 Fr2 PT) 121,533 318,099 72, 517 121, 535 Public Service Officer Part Time 48,349 48,349 Parking Enforcement Officer (2 PT) 55,480 Patrolmen (1s) 55,480 468, 040 88,360 1,556 400 Total Police Department 2 5 96 88,360 2,444,26 Water System Coordinator 447 50, 481 6, 445 18, 711 77,084 GIS Specialist/Development Review Asst 39,055 19, 527 9,527 78,112 Stormwater Program Manager Stormwater Crew 73,629 73,629 1, 573 13,140 6,449 52,730 73,892 Total Other De •artmental 3,020 0 102,676 32,421 164,597 302, 717 Page 51 Current Expense -001 Stabilization -003 Current Expense -001 Capital Projects -302* OPERATING TRANSFERS 415,746 70,918 $ 148,000 279,000 $ 140,000 6,000 Current Expense -001 Current Expense -001 Cum. Res. for Municipal Equipment -303 Street Capital Projects -304 164,956 190,300 300,000 25,000 840,000 Current Expense -001 City Street -002 27,500 City Street -002 Current Expense Fund -001 7,593 City Street -002 Cum Res. for Municipa Equipment -303 96,000 131,000 69,587 City Street -002 Street Capital. Projects -304 7,500 REET -109 * Current Expense Fund -001 75,483 108,000 REET -109 * City Street -002 195,975 870,000 REET -109 * 2003 Ltd GO Refunding Bond -206 332,780 329,777 331,610 REET -109* Capital Construction -302* 227,650 286,750 REET -109 * Street Capital Projects -304 98,250 act Fee -111 Current Expense Fund -001 72,342 80,000 act Fee -111 Capital Construction -302* 372,430 62,500 345,700 act Fee -111 Street Capital Projects -304 150,000 50,000 Capital Construction -302* REET -109 * 1,650,000 Street Capital Projects -304 City Street -002 300,000 Water Sewer Utility -401 Current Expense Fund -001 4,742 ater Sewer Utility -401 Cum. Res. for Water Sewer - 403 231,479 3,000,000 4,000,000 Cum Res. for Water Sewer -403 Water Sewer Utility-401 682,368 3,490,000 5,450,000 Storm Drainage Utility -421 Current Expense Fund -001 1,062 Storm Drainage Utility -421 Storm Drainage Equipment Reserve -422 50,000 100,000 65,000 Storm Drainage Utility -421 Storm Drainage Facilities Reserve -423 Storm Drainage Utility -421 2015 Cuin. Res. for Municipal Facilities' Fund No. 302 was re -named Capital Projects Fund 302. BEET Fun 693,850 250,000 250,000 ved to BEET Fund No. 109. Page 52 OVERVIEW The General Fund provides for the daily operations of the Port Orchard city government. The pie charts below indicate revenues and expenditures Port Orchard expects in 2017-2018. Projected Revenues TBD Vehicle Fees 1% Fines & Forfeits 2% Goods & Srvc 5% Transfers 0% License & Permits 3% Intergvrmt 5% Expenditures This table compares revenues received to expenditures incurred in the General Fund. For the 2013-2014 fiscal period actual expenses & revenues received are depicted. 2015-2016 is budgeted and 2017-2018 is a projection of what the City anticipates for the year. Fund balance and reserves are not included in this graph. Supplies & Fuel 3.03% Department Projected Expenditures Parks & Recreation 2.9% Public Works 4.8% Community Develop 11.3% by Type Services gntergvrmntl Charges Sys 26.18% 9.95% Capital Outlay 0.38% Interfund Services (Interfund rent) 0.06% Interfund Transfers 4.59% Admin Financial 6.9% Judicial 5.2% 25,000,000 General Fund Trends 20,000,000 15,000,000 10,000,000 5,000,000 Revenues asessmit Expenditures 2013-2014 2015-2016 2017-2018 Actuals Budget Budget 16151,331 20,271,406 21,198,624 15,410,713 20,271,406 21,198,624 Page 53 REVENUES & EXPENDITURES Assigned Beginning Fund Balance Committed Beginning Fund Balance Restricted Beginning Fund Balance 809, 646 976, 210 204,19 7.500 281,000 7, 500 971,600 109,800 Unassigned Beginning Fund Balance 642, 667 1,000,000 1, 625,000 Property Tax Sales Tax 4,545,214 4,768,800 7, 501, 359 8, 334, 000 5,396,235 9,167, 000 Utility/Franchise Tax Gambling Tax Other Taxes 3,052,909 3,090,700 42,239 147,400 209, 775 196,000 3, 506,035 152, 000 572, 600 icenses & Permi s 609, 026 649.300 673, 800 Intergovernmenta 788.992 972.563 1.046, 500 Charges Goods & Services 834, 903 834,600 1.052.350 Fines & Forfeits 505, 514 441,800 444, 000 Miscellaneous Revenue 456.696 341, 750 382,339 Operatin. Transfers In 384.696 1, 358.000 Expenditures Personnel Costs (Salary & Benefits) 11.339.868 2, 887, 512 14, 537,368 Supplies & Fuel 582, 004 601.655 712,965 Services & Charges 3,483,618 5.871.512 4.777.146 Intergovernmental Services Capital Outlay Interfund Services 1,278.301 291.188 47, 999 2, 046.203 282, 067 18,666 2, 343, 074 89,100 5.216 Interfund Transfers 973.634 1,119, 300 1, 080,587 Assigned Ending Fund Balance Committed Ending Fund Balance Restricted Ending Fund Balance 952,308 287.818 7.500 566,300 109.800 570,693 236.800 Unassigned Ending Fund Balance 1,427,912 724,345 736,310 '2013-2014 & 2015-2016 are annual budgets combined to be comparable to the 2017-2018 Page 54 FUND BALANCE & RESERVES GENERAL FUND BALANCE Fund balance is an important part of a City's General Fund budget. A city may use fund balance for many reasons. A healthy fund balance allows city operations to continue regardless of the timing of revenues received during a specific period. Fund balance is also used as a "Savings" account, enabling a city to put away dollars for large expenditures that would otherwise hinder the operating cash flow, or Council might choose to set aside funds for special projects anticipated in future years. General Fund Ending Fund Balance The graph above shows the trend for the budgeted general fund balance. Fund Balance is divided into four different categories. These allow one to easily determine what the funds are to be utilized for. Port Orchard's General Fund balance includes restricted, committed, assigned, and unassigned funds. Port Orchard's revenue proceeds fluctuate during the year. This can be due to the economy or simply the type of revenue. An example of this is Property Tax. The City budgets an amount for property tax. The County, which collects the tax revenues, remits payments to the City on a monthly basis. The bulk of the tax revenue is received in May and November. This is because taxpayers typically pay their taxes to the County twice per year, in April and in October. Without fund balance the City would be constrained by lack of revenue during many months of the year. Fund balance allows the City to continue to meet its expenditures even during the months where the revenues come in at a lesser amount. The City adopted financial policies (Resolution No. 022-12) which include a goal of retaining a minimum of 5% of the budgeted expense in unassigned fund balance in the General Fund. Page 55 necessary for future improvements to event of a catastrophic -- failure. Reserve Rosorve funds a||ovv Port Orchard to provide the best service possible to its residents. 1,800,000 The ohachart1 to the right '600'000 illustrates the ebb and flow 1,400,000 of the reserves for capital 1,200,000 construction/equipment. 1,000,000 The fluctuations 8OO uotuations000u/aaa 'OOO result of expenditures for sno'noo large projects or equipment '008 which reduces reserve uuo'000 fund balance and also receipt of Real Estate Excise Tax (REET) funds which rise and fall based on properties sold within GENERAL FUND RESERVES Portions of fund balance dollars are designated fora specific use or to meet a future need. This funding is maintained in separate line item accounts sometimes known as reserve accounts. The City has reserve accounts in its Current Expense, City Street & Stabilization Funds. Funds in these accounts are rootrioted, oommittad, or assigned depending on the constraints set upon how the funds may be spent. The chart below indicates the increases and decreases tuthe General Fund reserve accounts aafunds are saved urspent onprojects. 900,000 800,000 700,000 600,000 500.000 400,000 300.000 200,000 100.000 General Fund Reserves 2015-2016 Budget 2017-2018 Budget nCurrent Expense in Street Stabilization Port Orchard also has funds for Capital Construction and Equipment Reserves. These dollars are set aside for large projects and equipment purchases. The funds frequently have spending restrictions placed upon them due to the type of revenue naoaivad by the City (Grants, Flaa| Estate Excise Tax [KEET]). It is important that the City maintain and continue to build these reserves to provide the funding equipment and infnastnuobupe, or to rebuild infrastructure in the Capital Construction and EOU'O0OeDf Reserves 0 2015-2016 Budget 2017-2018 Budget nnssr = Capital Construction a Res. m"m"Equipment " Street Capital o"=, Port Ornhand'sCity limits. The 2013-2014cycle budgeted amounts. shows actual dollars. 2015-2016 and 2017-2018 are 2017-2018 EXPENDITURE BUDGET Stabilization Fund Stabilization Fund Expenditures 2013-2014 Actual 2015-2016 Budget 2017-2018 Budget 003.0.508.90 00 Committed Fund Balance -Ending $ 519,179 $ 669,030 $ 811,900 Total Stabilization 519,179 669,030 811,900 Page 57 MISSION STATEMENT Provide leadership, direction, and supervision of City government in a manner that creates a productive working environment, enhances public trust, and promotes understanding of City services and how they are delivered. DEPARTMENT DESCRIPTION The City Mayor is elected at large by the citizens of the City of Port Orchard and serves as the chief administrative officer. The Mayor is responsible to the City Council and managing the departments of the City and all of its employees. The Mayor is also responsible for preparing the annual budget, submitting it to the Council, and administering it after it is approved. This includes enacting the Council's policies; providing City Department overview and liaison; and representing the City officially to the public and other governmental agencies. 2017 & 2018 GOALS Goal 1: Jobs & Sustainable Development • Support Economic Growth and Jobs • Maintain Business Friendly Practices and Policies Goal 2: Public Safety • Prepare for all Hazards through Planning, Prevention, Protection, and Recovery • Engage the Whole Community in Preparedness Actives • Respond Quickly and Effectively • Maintain Order, Enforce the Law, and Protect the Public Goal 3: Fiscal Responsibility • Effectively Manage the Public's Money • Improve Cost Effectiveness and Leverage Partnership • Implement Innovative Technologies Goal 4: Quality of Life • Strengthen Neighborhoods • Improve our Parks • Provide Recreational, Wellness, and Educational Opportunities NON FINANCIAL LONG-TERM GOALS • Planning and implementation of our community centers concept • Advocate for changes that will energize our downtown with activity • Invite investment and development to our community that will fund our capital facilities needs • Encourage management and our elected leaders to be innovators by thinking out of the box Page 58 DEPARTMENT OBJECTIVE • Administer government of the City of Port Orchard and policies of the Council to promote the well- being of citizens • Manage the budget process to minimize the need to lay off employees or cut services while still maintaining a deficit -free budget and healthy fund balance • Administer the City's personnel rules and regulations • Provides oversight to departmental operations • Provides oversight for capital projects • Provides oversight for City grant application and administration STATISTICS/WORKLOAD MEASURES Department Measures 2016 Estimated 2017 Estimated 2018 Estimated Appointments with citizens, businesses, and members of the community 229 235 240 Number of Board Meetings with other Local Agencies 107 100 100 Participation in Community Events 112 115 115 300 250 200 150 100 50 0- 2016 2017 2018 Estimated Estimated Estimated PERFORMANCE MEASURES Appointments with citizens, businesses, and members of the community Number of Board Meetings with other Local Agencies The City-wide perfoi m,iance measure is done by the citizens of Port Orchard. Departments align their goals and performance measures to the Mayor's priorities to ensure the City's strategic goals and objectives are accomplished; resulting in areas of improvement within the City. STAFFING LEVELS Staffing Levels 2015 Actuals 2016 Estimated 2017 Estimated 2018 Estimated Mayor 1 1 1 1 Page 59 1.2 0.8 0.6 - 0.4-- 0.2 0 ACCOMPLISHMENTS Mayor f 2015 Actuals • 2016 Estimated 2017 Estimated II 2018 Estimated The Mayor has met extensively with local businesses, community forums, and other local government partners. He initiated a space analysis on the space needs of City Hall, added additional space for department needs, negotiated a number of long term leases that were up for renewal, hired a professional facilitator to conduct a Council and Staff retreat, and implemented the City's website. SIGNIFICANT BUDGET CHANGES There were no significant budget changes, however minor increases in various categories to strengthen the partnerships with our local businesses, local governmental agencies, and network opportunities with other local officials. Mayor 2015 Actuals 2016 Budgeted 2017 Budgeted 2018 Budgeted Salaries & Wages $ 44,497 $ 43,487 $ 54,774 $ 56,417 Personnel Benefits 8,988 29,845 19,942 20,540 Office & Operating Supplies 404 375 475 475 Professional Services - - 3,500 3,500 Communication 466 400 450 450 Travel 48 1,400 3,245 3,245 Operating Rentals & Leases 141 250 250 250 Repairs & Maintenance 99 150 150 150 Miscellaneous 3,581 3,575 4,475 4,475 Total $ 58,224 $ 79,482 $ 87,261 $ 89,502 Mayor - Legal Services 2015 Actuals 2016 Budgeted 2017 Budgeted 2018 Budgeted City Attorney Retainer $ 90,000 $ 101,500 $ 150,000 $ 150,000 City Attorney Above Retainer 14,667 61,000 15,000 15,000 Prosecuting Attorney (Criminal) 88,025 90,000 102,250 102,250 Prosecuting Attorney (Traffic) 9,780 10,050 10,700 10,700 Indigent Defense Services 120,228 126,000 131,400 131,400 Total $ 322,700 $ 388,550 $ 409,350 $ 409,350 Total Mayor Expenditures $ 380,924 $ 468,032 $ 496,611 $ 498,852 Page 60 MISSION STATEMENT The mission of the City of Port Orchard is to provide a full range of municipal services to residents and businesses in accordance with City Council policy and direction. City staff shall deliver those services in an efficient, effective, and courteous manner with a commitment to operational excellence. DEPARTMENT DESCRIPTION The City Council is a body of seven individuals elected by the citizens of City of Port Orchard to establish policy for the City and its citizens. Port Orchard was incorporated as a second class city in 1890, and is governed by a Mayor -Council foiin of government and elected by its citizens to provide dedicated services to enhance the safety, livability, and prosperity of the community. 2017 GOALS Be ahead of change: • Update code to address derelict buildings. • Evaluate staffing and City Hall space needs. • Continue staff/Council communication regarding the Gorst project. • Track changes in WSDOT's plan for addressing the City's fish barrier culverts. Harness "the evolution" that is coming to Port Orchard: • Provide more funding to parks and open space. Invest in downtown and the waterfront: • Create a conceptual design for the next phase of the Bay Street pathway. • Deteiinine the future of the marquee. • Begin planning how to move parking off the waterfront. Engage community members: • Begin plans for at least 3 sub -areas prioritized in 2016. • Establish and start a public process for a re -design of the Bethel corridor. Balance growth with affordability: • Begin applying for funding for Tremont. Create predictability in development: • Add to and continue sharing the toolkit to attract businesses and developers to the City. • Establish policies for development connectivity, and check if this is already in the comprehensive plan and development regulations. Page 61 2018 GOALS Harness "the evolution" that is coming to Port Orchard: • Add Sidney Avenue project to TIP for completion by 2023 (or date TBD). • Evaluate the need for a Parks Department and/or Director. • Complete conceptual design for joint -use civic center. Invest in downtown and the waterfront: • Continue the Pathway Project. • Move parking off the waterfront. Engage community members: • Complete all 10 sub -area plans. Balance growth with affordability: • Completed construction of Tremont. NON FINANCIAL LONG-TERM GOALS The Council shall protect and improve the quality of life for City residents by adopting policies that reflect the needs and desires of the majority of citizens living within the City. DEPARTMENT OBJECTIVE • Ensure funding levels that reflect the priorities of City residents. • Monitor policy implementation by examining outcome statistics and financial records. • Improve services to citizens. STATISTICS/WORKLOAD MEASURES Department Measures 2015 Actuals 2016 Estimated 2017 Estimated 2018 Estimated Number of Council Meetings 41.0 40 36 36 Number of Council Committee Meetings 48 50 52 52 Number of Actions Items Approved 162 173 145 145 Number of Consent Agenda Items Approved 121 141 130 130 Page 62 200.0 150.0 100.0 50.0 0.0 2015 Actuals 2016 2017 2018 Estimated Estimated Estimated Number of Council Meetings Number of Council Committee Meetings Number of Actions Items Approved w Number of Consent Agenda Items Approved PERFORMANCE MEASURES Insure the Mayor and staff are working to complete policies and goals set by the Council. STAFFING LEVELS Staffing Levels 2015 Actuals 2016 Estimated 2017 Estimated 2018 Estimated Council Members 7 7 7 7 ACCOMPLISHMENTS V Council Members 2015 Actuals ® 2016 Estimated 0 2017 Estimated ▪ 2018 Estimated Created a Transportation Benefit District (TBD), increased staff for departments in need, updated the Council meeting process to create efficiencies in council meetings, vacated unused city rights -of -way, and updated the Fireworks Ordinance to allow the ability to ban firework in extreme weather. Page 63 SIGNIFICANT BUDGET CHANGES No significant budget changes, however the need of new council chairs have been included in the 2017 budget. Miscellaneous General Government 2015 Actuals 2016 Estimated 2017. Estimated 2018 Estimated Association of Washington Cities Membership $ 8,210 $ 8,310 $ 8,900 $ 8,900 Puget Sound Air Pollution Control Agency 7,992 8,930 9,110 9,100 Animal Control 39,300 41,000 42,000 43,000 Public Health 10,698 10,943 12,812 12,812 Substance Abuse 3,166 3,500 3,500 3,500 Elections Cost 2,809 - 12,000 10,000 Voter Registration 17,513 20,000 20,000 20,000 Total $ 89,688 $ii 108,322 $ 107,312 $ 92,683 Miscellaneous General Government 2015 Actuals 2016 Estimated 2017 Estimated 2018 Estimated Association of Washington Cities Membership $ 8,310 $ 8,310 $ 8,900 $ 8,900 Puget Sound Air Pollution Control Agency 7,992 8,930 9,110 9,110 Animal Control 39,300 41,000 42,000 43,000 Public Health 8,578 10,943 12,812 12,812 Substance Abuse 3,166 3,500 3,500 3,500 Elections Cost 2,809 - 12,000 10,000 Voter Registration 17,513 20,000 20,000 20,000 Total $ 87,668 $ 92,683 $ 108, 322 $ 07,322 Total City Council Expenditures $ 242996 $ 283,699 $ 305,940 $ 302,075 Page 64 MISSION STATEMENT The mission of the Clerk is to present a courteous, service -oriented team of professionals who provide quality administrative support to the City's elected officials; accurately record, maintain, and preserve City records; ensure the City's legislative processes are open and public in accordance with Washington's Open Meetings Act; provide a link between constituents and government through the dissemination of information; direct an efficient and comprehensive city-wide records management program; perform all mandated functions under the Revised Codes of Washington and Port Orchard Municipal Code; and conduct ourselves in an ethical, impartial, and professional manner. DEPARTMENT DESCRIPTION The City Clerk is assisted by a Deputy Clerk and Office Assistant II. The City Clerk provides support to the Mayor and City Council. This support includes providing public access to City records, the administration, and the policy -making process. The City Clerk oversees the City's records management program and public records access; risk management services for the City; provides contract administration; process street or alley vacation requests, City Code codification; preservation of the legislative history of the City; serves as the custodian of the City seal and official City documents, and serves as a conduit between the City Council, administration, and the public. The City Clerk coordinates City Council meetings and work study sessions, produces meeting packets, audio-visual record meetings, and provides records of the proceedings; drafts ordinances, resolutions, and contracts; administers programs assigned by the Council such as cabaret licenses, pawnbrokers licenses, fireworks, peddlers and hawkers licenses, public event applications; and master vendor licenses; and staffs Town Hall meetings, Festival of Chimes and Lights, and the Lodging Tax Advisory Committee. 2017 & 2018 GOALS Goal 1: Deliver excellent customer service The best customer service requires constant improvement, which requires constant assessment based on feedback and active benchmarking. Proper delivery of customer service serves the people by providing accurate information and maximizing access to municipal government in an efficient, timely, professional, and courteous manner. Over the next year, the Department will move toward accomplishing this goal by focusing on the following objectives: • Respond quickly and accurately to customer requests • Provide current, comprehensive, and accurate information to meet customers' needs Goal 2: Provide access to the City's official record and legislative documents in as many different mediums as possible Page 65 Access to infoi nation is a core function of the Office of the City Clerk. To this end, the Department is dedicated to remaining on the cutting edge of information storage and retrieval. Over the next year, the Department will move toward accomplishing this goal by focusing on the following objective: • Maintain and preserve City Council proceedings and related documents (e.g., minutes, action sheets, resolutions/ordinances, contracts/agreements, leases, deed/easements) Goal 3: Administer records management program City-wide A viable records management program ensures that each department can maximize its operational goals by making information more readily available for service delivery. Consolidating responsibility for the City's Records Management Program increases accountability and ensures effective service delivery. Over the next one to two years, the Department will move toward accomplishing this goal by focusing on the following objective: • Understand each departments archiving needs • Provide training on the State's Retention Schedule • Realize efficiencies by coordinating activities and standardizing processes across the City • Provide input on a records management data base program; allowing each department access for maintaining and researching documents Goal 4: Effectively support the goal of operating as 'One City' The Office of the City Clerk has a hand in almost every aspect of City business, bridging the legislative and executive sides of government. Over the next year, the Department will move toward accomplishing this goal by focusing on the following objectives: • Maintain easy access to needed points of contact across the City • Communicate effectively across the City • Provide assistance when needed across the City Goal 5: Utilize technology and best business practices in effective service delivery Technology provides the vehicle for enhanced access to information. Over the next one to two years, the Department will move toward accomplishing this goal by focusing on the following obj ectives: • Apply technology effectively to provide increased and improved access to materials on-line • Realize the fullest potential of existing technology and technical resources to provide the most complete service • Apply technology more effectively to increase staff's ability to provide the most efficient service • Ensure that the Department operates with fiscal responsibility • Employ best practices for effective service delivery and applying flexibility to resource allocation NON FINANCIAL LONG-TERM GOALS Continue to streamline processes, maintain consistency of managing electronic and paper records, and develop a Claims management program. Page 66 DEPARTMENT OBJECTIVE Provide excellent customer service to the public, assist the Mayor in day-to-day operations of the City, perform actions by the Council, and assist other departments when needed. STATISTICS/WORKLOAD MEASURES Department Measures 2015 Actuals 2016 Estimated 2017 Estimated 2018 Estimated Number of inquiries received via phone/walk-in 7423 6228 6500 6500 Percentage of requests completed within 5 days 98 100 100 100 Percentage of minutes approved by Council w/no corrections 92 98 100 100 Percentage of agendas posted on-line 3 days before meeting 100 100 100 100 Number of meeting packets prepared 41 40 40 40 Number of requests received 134 145 150 155 Number of requests taking more than 10 days to complete 19 15 17 18 Number of staff hours spent on requests; Excluding Police & OTC 780 112 125 135 Paper files created & inventoried 209 230 235 240 Paper pages scanned & inventoried 5895 6500 6700 6900 Ordinances/Resolutions/Minutes/Contracts processed 144 205 215 220 Number of Followers/Likes of Social Media 800 900 950 1000 Number of visits of website Traffic 325000 325000 325000 330000 8000 7000 6000 5000 4000 3000 2000 1000 2015 2016 2017 2018 Actuals Estimated Estimated Estimated PERFORMANCE MEASURES Number of inquiries received via phone/walk- in Percentage of requests completed within 5 days Percentage of minutes approved by Council w/no corrections Percentage of agendas posted on-line 3 days before meeting Performance measures are to insure the public are getting records and infoi ination on Council's actions and goal in an efficient and timely manner. Page 67 STAFFING LEVELS Staffing Levels 2015 Actuals 2016 Estimated 2017 Estimated 2018 Estimated City Clerk 1 1 1 1 Deputy Clerk 1 1 1 1 Office Assistant II 1 1 1 1 1.2 ACCOMPLISHMENTS City Clerk Deputy Clerk Office Assistant I I 12015 Actuals • 2016 Estimated l. 2017 Estimated 2018 Estimated • Maintained the Mayor's and Clerks records management database and retention schedule. • Continued the efforts of logging historic files into the records management database. • Maintained a streamlined process to responding and providing high volume of records for public records requests and acquired a public records request software for public use and staff. • Created and implemented the codification of Special Events. • Integrated and updated the City's website. Transcribed Ordinances from 1890 to 1903 and added to the records management program. SIGNIFICANT BUDGET CHANGES No significant changes, however there is in increase in ongoing contract that were finalized in 2016. They included a public records request software and a records management software. In addition increased in training cost due to new staff. Page 68 City Clerk2015 Actuals 2016 Estimated 2017 Estimated 2018 Estimated Salaries & Wages $ 153,628 $ 158,363 $ 153,249 $ 160,541 Personnel Benefits 46,760 55,064 68,208 71,570 Office &Operating Supplies 3,418 4,950 4,550 4,550 Professional Services 2,693 6,000 Communication 1,244 1,400 1,555 1,555 Fuel Consumed - 150 200 200 Travel 3,265 4,020 4,225 4,225 Advertising 7,016 7,400 8,200 7,200 Operating Rentals & Leases 2,341 3,750 3,550 3,550 Insurance 355 425 425 425 Repairs & Maintenance 1,997 1,000 1,500 1,500 Miscellaneous 7,318 7,875 22,655 15,915 Total $ 230,035 $ 250,397 $ 268,317 $ 271,231 Page 69 2017-2018 DEPARTMENT OPERATING BUDGET Administration Department Expenditures 2013~2014 Actual 2015~2016 Budget 2017~2018 Budget 10 Salaries &Wages $ 538.338 $ 560.750 $ 592.981 20 Personnel Benefits 134.858 175.176 208'766 Total Salary & Benefits $ 873,994 $ 735,926 $ 801,747 31 Office & Operating Supplies $ 14.888 $ 13'175 $ 18'315 32 Fuel Consumed - 300 400 41 Professional Services 656.548 850.210 033.500 42 Communication 5.588 5.550 4'510 43 Tnawa| 7.182 16.080 21'840 44 Advertising 15.120 22.120 15.400 45 Operating Rentals &Leases 17.553 15.700 14'800 46 Insurance 805 800 850 48 Repairs &Maintenance 5.608 8.250 7.300 49 Miscellaneous 70.564 120.060 128.720 51 Intergovernmental Professional Services 184.010 184.808 197.844 52 Intergovernmental &Pay - 5.500 - Total Other Expenditures $ 966,966 $ 1'243,433 $ 1'341,279 Total Administration $ 1,630,959 $ 1.070,359 $ 2'143,026 For additional detail, see worksheets for Legislative, Executive, Records Services, Legal Services and Miscellaneous. 2O17-2O18DEPARTMENT BUDGET Services & Charges Salaries Benefits Supplies ANNUAL BUDGET COMPARISON 2013-201* 2015-201* 2017-2018 2017-2018 DEPARTMENT OPERATING BUDGET Administration Department Expenditures Actual Budget Budget 881.7.511.30 10 Salaries &Wages $ 105.783 $ 120.817 $ 120.154 20 Personnel Benefits 28.741 40.331 56.408 42 Communication 140 200 150 44 Advertising 943 020 1'800 40 K4iomaUeneouo 954 2.410 1.500 Total Official Publication Services $ 137'571 $ 184,778 $ 180,100 001.7.611.60 10 Salaries &Wages $ 139.778 $ 160.165 $ 168'000 20 Personnel Benefits 17.071 34'488 28.508 31 Office & Operating Supplies 3.000 1'750 8.285 41 Professional Services 81.289 88.940 107.800 42 Communication 322 850 500 43 Travel 3.077 6.740 6.900 44 Advertising - 5'800 - 4E Operating Rentals &Leases 8.527 8.000 7,000 48 Repaina& Maintenance 3.800 4'400 4'000 49 Miscellaneous 35.014 68.534 61.400 52 Intergovernmental &Pay - 5'500 - Total Legislative Services $ 292,587 $ 372,967 $ 392,371 511.30 Notes 42 Municipal Code -Web Hosting 44 Publish Legal Notices 40 Record Ordinances - Municipal Code 511.60Notaa 41 Lobbyist, Training Consultant, Council Chamber Microphones, Video 42 Postage, Phone, Fax, Postcards 43 Committee Meals, Travel Reimbursements 45 Postage Meter, Copy Machine, & Other Rental Expenses 48 Copier & Postage Machine Maintenance 49 Duee, Registrations, Subscriptions 2017-2018 DEPARTMENT OPERATING BUDGET Administration Department Expenditures Actual Budget Budget 001.7.513.10 10 Salaries &Wages $ 91.858 $ 88.328 $ 111.101 20 Personnel Benefits 17.200 41.847 40.482 31 Office & Operating Supplies 428 1.225 050 41 Professional Services - ' 7.888 42 Communication 849 000 000 43 Travel - 2.088 6.408 44 AdverboUng 1.400 100 ' 45 Operating Rentals &Leases 297 500 500 48 Repairs &Maintenance 139 300 300 40 Miscellaneous 5.384 7,325 8.050 543.10 Notes 43 Mileage and Meal Reimbursement 45 Copier &Postage Machine Maintenance 49 Membership/Dues and Training Registrations, Economic Development Networking 2017-2018 DEPARTMENT OPERATING BUDGET Administration Department Records Services Expenditures 2013-2014 Actual 2015-2016 Budget 2017-2018 Budget 001.7.514.30 10 Salaries & Wages $ 153,057 $ 151,361 $ 144,158 20 Personnel Benefits 50,384 57,806 67,563 31 Office & Operating Supplies 3,716 5,050 4,800 41 Professional Services 1 11,000 - 42 Communication 4,478 3,600 2,960 43 Travel 4,115 7,320 8,450 44 Advertising 251 2,200 600 45 Operating Rentals & Leases 5,048 5,500 4,900 46 Insurance 805 800 850 48 Repairs & Maintenance 1,958 3,000 3,000 49 Miscellaneous 5,636 9,650 23,320 Total Records Services $ 229,449 $ 257,287 $ 260,601 001.7.514.40 51 Intergovernmental Professional Services $ 17,253 $ 17,000 $ 22,000 Total Election Services $ 17,253 $ 17,000 $ 22,000 001.7.514.90 51 Intergovernmental Professional Services $ 34,646 $ 40,000 $ 40,000 Total Intergovernmental Professional Services $ 34,646 $ 40,000 $ 40,000 Total Records Service $ 281,348 $ 314,287 $ 322,601 514.30 Notes 43 Mileage and Meal Reimbursement 45 Postage Meter, Copy Machine Lease 46 Notary Bond & Surety Bond 48 Copy Machine, Miscellaneous Repairs 49 Printing, Dues, Registrations, Subscriptions Page 73 2017-2018 DEPARTMENT OPERATING BUDGET Administration Department Legal Services Expenditures 2013-2014 Actual ; 2015-2016 Budget 2017-2018 Budget 001.7.515.31 41 Legal Services $ 175,050 $ 180,500 $ 204,500 Total Legal Service -Criminal $ 175,050 $ 180,500 $ 204,500 001.7.515.32 41 Legal Services $ 189,477 $ 305,420 $ 330,000 Total Legal Service -Civil $ 189,477 $ 305,420 $ 330,000 001.7.515.32 49 Miscellaneous $ - $ 100 $ - Total Legal Service -Civil $ - $ 100 $ - 001.7.515.33 41 Legal Services $ 19,450 $ 20,050 $ 21,400 Total Legal Service -Traffic $ 19,450 $ 20,050 $ 21,400 001.7.515.91 41 Legal Services $ 191,279 $ 246,300 $ 262,800 Total General Indigent Defense $ 191,279 $ 246,300 $ 262,800 Total Legal Services $ 575,256 $ 752,370 $ 818,700 515.31 Notes 41 Prosecuting Attorney - Criminal 515.32 Notes 41 City Attorney Retainer 515.33 Notes 41 Prosecuting Attorney - Traffic 515.91 Notes 41 Investigators, Expert Witness, Transcription Services Indigent Defense Services Page 74 2017-2018 DEPARTMENT OPERATING BUDGET Administration Department Miscellaneous Expenditures 2013-2014 Actual 2015-2016 Budget 2017-2018 Budget 001.7.518.90 49 Miscellaneous (AWC) $ 15,302 $ 16,620 $ 17,800 Total Other Centralized Services $ 15,302 $ 16,620 $ 17,800 001.7.553.70 51 Intergovernmental Professional Services $ 11,838 $ 16,922 $ 18,220 Total Pollution Control $ 11,838 $ 16,922 $ 18,220 001.7.554.30 51 Intergovernmental Professional Services $ 73,609 $ 82,000 $ 85,000 Total Animal Control $ 73,609 $ 82,000 $ 85,000 001.7.562.00 51 Intergovernmental Professional Services $ 21,626 $ 21,886 $ 25,624 Total Public Health $ 21,626 $ 21,886 $ 25,624 001.7.566.00 51 Intergovernmental Professional Services $ 5,038 $ 7,000 $ 7,000 Total Substance Abuse $ 5,038 $ 7,000 $ 7,000 Total Miscellaneous $ 127,413 $ 144,428 $ 153,644 518.90 Notes 49 Minority & Women's Business Enterprise, Assoc. WA Cities Membership Page 75 2017-2018 DEPARTMENT OPERATING BUDGET Administration Department Festival of Chimes and Lights Expenditures 2013-2014 Actual 2015-2016 Budget 2017-2018 Budget 001.7.573.90 10 Salaries & Wages $ 47,852 $ 39,981 $ 49,478 20 Personnel Benefits 19,359 10,904 15,719 31 Office & Operating Supplies 7,735 5,150 4,300 32 Fuel Consumed - 300 400 44 Advertising 12,526 13,300 13,000 45 Operating Rentals & Leases 3,682 1,700 2,200 48 Repairs & Maintenance - 550 - 49 Miscellaneous 4,164 4,850 13,750 91.49 Miscellaneous -Foot Ferry Services 13,129 10,571 - Total Spectator & Community Events $ 108,449 $ 87,306 $ 98,847 Total Festival of Chimes and Lights $ 108,449 $ 87,306 $ 98,847 573.90 Notes 45 Postage Meter and Copy Machine 49 Printing, Audio, Miscellaneous, Garland & Wreaths Page 76 MISSION STATEMENT The Finance Department is committed to promoting and insuring financial integrity and accountability of the City to its citizens, elected officials, administrators, staff, and the media. Safeguarding public assets and providing the financial support needed to deliver quality public services. DEPARTMENT DESCRIPTION The Finance Department is responsible for accounting, accounts payable, billing, budgeting, business licensing, collections, financial reporting, payroll, purchasing, and revenue accounting. The department consists of eight finance professionals. The City Treasurer is responsible for the Infoliiiation Technologies (IT) Division, which provides technical and operational support to users, and includes procurement, setup and maintenance of all City computer hardware, and software. The City Treasurer provides supervisory support to Human Resource Management (HR) and the Human Resource Coordinator. 2017 GOALS • Manage Biennial Budget to include the mid -biennial review • Provide finance options for the Tremont Street Widening Project • Support Community Development Department in implementation of building abatement program 2018 GOALS • Provide accounting support to Public Works in constructing the Tremont Street Widening Project • Implementation of an Equipment Replacement Revolving Fund (ER&R) NON -FINANCIAL LONG-TERM GOALS • Secure unqualified audit opinions • Support training opportunities to staff • Provide cross training opportunities that allow for professional enhancement DEPARTMENT OBJECTIVE Finance • Professional and courteous finance staff that responds promptly to public inquires and requests. • Emphasize accountability, efficiency, innovation, and partnerships. • Prudent investment of cash reserves while adhering to the traditional principles applicable to the investment of public funds. • Process Payroll, Accounts Payable, and Receivables efficiently and accurately. Page 77 • Operate an efficient water, sewer, storm utility billing, and accounting program. • Prepare and monitor financial records for grant funding and prepare grant progress billings. • Maintain the City's capital assets and inventory records. • Provide debt service on bond issues and loans. • Strong internal controls to ensure accuracy and efficiency. • Promptly respond to requests for financial information, reports, and recommendations. • Accurate and transparent financial reporting in a format that is easily understood by the public. • Provide accurate, timely and appropriate financial reporting to City staff, administrative and elected officials, the media, and citizens. • Provide timely, accurate and effective support services to departments, including financial planning and financing options to support capital needs. Information Technology • Establish and perform scheduled network system backups. • Maintain all infoiivation system hardware and software on the City network, including real time off -site "mirror" server application. • Establish, monitor, and maintain the network health and security for citywide computer operations. • Monitor software applications to ensure that appropriate software licensing requirements are met. • Maintain miscellaneous electronic items, such as the clock tower, chimes, and courtroom video arraignment system. • Maintain and support City telephones and telephone system. • Provide on call support 24/7/365 for all City systems by staff or contract services. Human Resources Provide effective Human Resource Management by developing and implementing policies, programs, and services which contribute to the attainment of employee goals by: • Ensuring a diverse workforce in a safe and discrimination/harassment free environment by maintaining compliance with employment laws, government regulations and employee training. • Continuing to standardize human resources management practices in the areas of hiring, retention, employee development, benefits, and compliance with federal, state, and local regulations. HR will continue to collaborate with Regional TRAIN Consortium for Public Agencies and WSHRM to expand resources and training opportunities for the City. • Continuing to promote wellness programs and employee incentive options, HR will maintain the Well City status as a cost-effective health and productivity management strategy for the City, yielding important benefits to our individual workers and their families. • Offering benefit services to all employees by administering orientation sessions for all new staff and continuing to provide individualized benefits counseling. Also providing appropriate training, resources, and contacts for employee's specific benefits advising needs. • Promoting safety awareness, training, and safe work habits among City employees and responding timely to concerns, questions, or complaints about health and safety issues to minimize damages resulting from accidents and Workman's Compensation time loss claims. HR will support L&I's Stay at Work program as a financial incentive encouraging City Directors to provide their injured workers with light duty or transitional work. Page 78 • Maximizing technology to streamline HR transactional activities in order to improve and enhance workflow efficiency and improve customer service. HR will transition to Springbrook's HR module to offer flexible, user-friendly, and integrated systems, including the expanded use of employee self-service. STATISTICS/WORKLOAD MEASURES Department Measures 2015 Actuals 2016 Estimated 2017 Estimated 2018 Estimated Estimated Number of Utility Billing Accounts Serviced 4603 4655 4715 4775 Estimated Number of inquires via walk in/calls 13000 13000 13500 14000 Estimated Number of Business Licenses Processed 240 250 260 275 16000.0 14000.0 12000.0 10000.0 8000.0 6000.0 4000.0 2000.0 0.0 2015 2016 2017 2018 Actuals Estimated Estimated Estimated PERFORMANCE MEASURES Estimated Number of Utility Billing Accounts Serviced Estimated Number of inquires via walk in/calls • Estimated Number of Business Licenses Processed • Earn the 2016 and 2017 AWC Well City Award. • Have all City Employees trained in First Aid and CPR in 2018. • Conduct ADA awareness training for Supervisors. STAFFING LEVELS Staffing Levels 2015 Actuals 2016 Estimated 2017 Estimated 2018. Estimated City Treasurer I 1 1 1 Assistant Treasurer 1 1 1 1 Accounting Assistant Ill 2 2 2 2 Accounting Assistant II 4 4 4 4 Human Resource Coordinator 1 1 1 1 LAN Tech/IT Manager 1 1 1 1 IT Support Specialist 0 0 0.5 0.5 Page 79 4.5 4 3.5 3 2.5 2 1.5 1 0.5 0 2015 Actuals 2016 2017 2018 Estimated Estimated Estimated ACCOMPLISHMENTS City Treasurer Assistant Treasurer Accounting Assistant III Accounting Assistant II Human Resource Coordinator LAN Tech/IT Manager IT Support Specialist • Implementation of 2017 - 2018 Biennial Budget • Comprehensive upgrade to Information Technology infrastructure, systems, and procedures • Integration of new IT Specialist position providing computer support • Well City Award. For the past six years the City earned the Well City Award from the Association of Washington Cities (AWC) Employee Benefit Trust. The award is based on meeting stringent best practice standards in employee health promotion. As a recipient of this award, the City receives a 2% premium discount on their Regence BlueShield or Group Health medical coverage for employee & spouses for 2017 budget year. • Implementation of ADA requirements as ADA Coordinator to bring all programs, services and activities of the City into compliance under Title II, Section 35.102. • Provided support through the research and development of materials and comparison data needed for the negotiation process in reaching a successful. Collective Bargain. Agreements between the City and Teamsters 589 and the City and the Port Orchard Police Guild for 2016- 2018. • Developed the Building Beneficial Partnerships Program to offer experiential learning for the student/volunteer seeking experience with the City of Port Orchard. • Awarded the Distinguished Budget Award for the 2016 Budget. SIGNIFICANT BUDGET CHANGES Springbrook Cloud Conversion is included in the 2017-2018 Budget. The cost will be allocated across various funds using the Cost Allocation Module. The estimated cost is $63,000. Page 80 2017-2018 DEPARTMENT OPERATING BUDGET Finance Department Expenditures 2013-2014 Actual 2015-2016 Budget 2017-2018 Budget 10 Salaries & Wages $ 574,776 $ 648,969 $ 747,846 20 Personnel Benefits 195,864 263,818 304,571 Total Salary & Benefits $ 770,641 $ 912,787 $ 1,052,417 31 Office & Operating Supplies $ 68,188 $ 79,280 $ 112,550 41 Professional Services 91,042 201,438 113,400 42 Communication 9,809 13,000 8,600 43 Travel 9,315 14,000 15,000 44 Advertising 975 1,000 2,000 45 Operating Rentals & Leases 4,483 8,247 8,350 46 Insurance 175 200 200 48 Repairs & Maintenance 33,258 50,200 62,200 49 Miscellaneous 58,295 63,660 133,860 51 Intergovernmental Professional Services - - 17,400 Total Other Expenditures $ 275,540 $ 431,025 $ 473,560 64 Machinery & Equipment $ 5,542 $ 120,012 $ 67,500 Total Capital Expenditures $ 5,542 $ 120,012 $ 67,500 Total Finance Department $ 1,051,723 $ 1,463,824 $ 1,593,477 For additional detail, see worksheets for Finance, Human Resources, and Information Technology. 2017-2018 DEPARTMENT BUDGET Supplies 7% Salaries 49% Benefits 20% Services & Charges 24% $1,800,000 $1,600,000 $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $- ANNUAL BUDGET COMPARISON 2013-2014 Actual 2015-2016 Budget 2017-2018 Budget Page 81 2017-2018 DEPARTMENT OPERATING BUDGET Finance Department Finance Expenditures 2013-2014 Actual 2015-2016 Budget 2017-2018 Budget 001.1.514.22 10 Salaries & Wages $ 46,182 $ 42,258 $ 51,000 20 Personnel Benefits 14,511 15,312 18,379 Total Fiduciary Services $ 60,693 $ 57,570 $ 69,379 001.1.514.23 10 Salaries & Wages $ 283,800 $ 322,091 $ 352,351 20 Personnel Benefits 105,803 150,384 174,078 31 Office & Operating Supplies 5,911 9,550 10,100 41 Professional Services 52,645 54,500 51,300 42 Communication 4,981 5,600 5,600 43 Travel 7,757 9,400 9,400 45 Operating Rentals & Leases 3,206 6,500 6,600 46 Insurance 175 200 200 48 Repairs & Maintenance 3,158 8,850 9,000 49 Miscellaneous 50,990 47,840 39,040 Total Budgeting/Accounting/Auditing $ 518,425 $ 614,915 $ 657,669 001.1.594.10 14.64 Machinery & Equipment $ 1,110 $ 18,500 $ - Total Machinery & Equipment $ 1,110 $ 18,500 $ - Total Finance $ 580,228 $ 690,985 $ 727,048 514.23 Notes 41 State Auditor, Micro -Flex Tax Audit, GASB 34 Consultant 45 Postage Meter, Copy Machine Lease 46 Notary Bonds 48 Micro -Flex Tax Tools Maintenance, Copy Machine Maintenance, Miscellaneous Repairs 49 Permit Stickers, Springbrok User Fees, Shredding Services, Dues, Printing, Service Subcription for Parking Boxes, Business License Fees, Banking/Fiscal Agent, Parkeon Service Fee, Registrations Page 82 2017-2018 DEPARTMENT OPERATING BUDGET Finance Department Human Resource Expenditures 2013-2014 Actual 2015-2016 Budget 2017-2018 Budget 001.1.517.90 31 Office & Operating Supplies $ 1,424 $ 1,700 $ 1,400 43 Travel 336 600 600 49 Miscellaneous 22 1,200 2,900 Total Employee Benefit $ 1,783 $ 3,500 $ 4,900 001.1.518.10 10 Salaries & Wages $ 103,139 $ 137,914 $ 149,477 20 Personnel Benefits 19,940 31,704 35,691 31 Office & Operating Supplies 758 1,050 800 41 Professional Services 14,509 21,900 21,200 42 Communication 2,355 3,000 600 43 Travel 1,016 2,000 2,000 44 Advertising 975 900 2,000 45 Operating Rentals & Leases 1,277 1,647 1,750 48 Repairs & Maintenance 530 1,200 1,000 49 Miscellaneous 4,720 6,800 7,500 Total Personnel Services $ 149,221 $ 208,115 $ 222,018 001.1.518.11 10 Salaries & Wages $ 23,994 $ - $ - 20 Personnel Benefits 3,992 - - 31 Office & Operating Supplies 987 - - 41 Professional Services 22,174 - - 43 Travel 206 - - 49 Miscellaneous 1,913 - - Total S.H.I.P. Grant $ 53,265 $ - $ - Total Human Resource $ 204,269 $ 211,615 $ 226,918 518.10 Notes 41 Drug Testing, Personnel Investigations, L&I Compliance Management, Hiring Costs 48 Copy Machine Maintenance, Miscellaneous Repairs 49 Printing, Dues, Registrations, Subscriptions, AWC D&A Testing Consortium Page 83 2017-2018 DEPARTMENT OPERATING BUDGET Finance Department Information Technology Expenditures 2013-2014 Actual 2015-2016 Budget 2017-2018 Budget 001.1.518.88 10 Salaries & Wages $ 117,661 $ 146,706 $ 195,018 20 Personnel Benefits 51,619 66,418 76,423 31 Office & Operating Supplies 59,108 66,980 100,250 41 Professional Services 1,713 125,038 40,900 42 Communication 2,473 4,400 2,400 43 Travel - 2,000 3,000 44 Advertising - 100 - 45 Operating Rentals & Leases - 100 - 48 Repairs & Maintenance 29,570 40,150 52,200 49 Miscellaneous 650 7,820 84,420 51 Intergovernmental Professional Services - - 17,400 Total Information Technology $ 262,794 $ 459,712 $ 572,011 001.1.594.10 18.64 Machinery & Equipment $ 4,433 $ 101,512 $ 67,500 Total Machinery & Equipment $ 4,433 $ 101,512 $ 67,500 Total Information Technology', $ 267,227 $ 561,224 639,511 518.88 Notes 31 Parts, Equipment, & Supplies, Barracuda Firewall & Spam Filter, Surface Pros, DCD IT Equipment, Workstations(18) 41 Computer Consultant, Website Upkeep 42 Modems, Phone, Fax, Website Hosting 48 Software Maintenance, Antispam, Miscellaneous Repairs, Mobileguard Text Archiving 49 Dues, Subscriptions, KRCC-Kitnet Dues, Training Registrations Page 84 MISSION STATEMENT The mission of Port Orchard Municipal Court is to establish and maintain public trust and confidence in the Court by ensuring independence, accessibility, accountability, and fairness for all citizens. DEPARTMENT DESCRIPTION The Municipal Court as a separate yet equal branch of government is responsible for adjudicating misdemeanor and gross misdemeanor criminal cases for violations occurring within the City limits including criminal traffic cases (such as DUI' s), criminal non -traffic cases (such as Assault 4 Domestic Violence), non -criminal traffic infractions (such as speeding) and non -traffic infractions (such as code enforcement violations), and parking tickets. In addition, the Municipal Court is responsible for maintaining all court records involving these cases, to efficiently and effectively administer justice, and to serve the public as well as maintain compliance with the law. The Court is committed to a strong justice system based on public awareness and prevention in order to ensure a safe community for all citizens. 2017 GOALS • Continue to maintain all court records within the parameters required by State law, local laws, and court rules • Continue to efficiently and effectively administer justice • Continue scanning all post -conviction DUI and DV cases for record retention purposes • Continue maintenance of bail schedules, court forms and procedures as legislation dictates • Continue monitoring of interpreter Language Assistance Plan • Prepare Court for electronic filings and retention (paperless court) 2018 GOALS • Convert to digital (paperless) court by converting to electronic Case Management System • Continue to maintain all court records within the parameters required by State law, local laws, and court rules • Continue to efficiently and effectively administer justice • Continue maintenance of bail schedules, court forms and procedures as legislation dictates • Continue monitoring of interpreter Language Assistance Plan NON FINANCIAL LONG-TERM GOALS • Continue to maintain all court records within the parameters required by State law, local laws, and court rules • Continue to efficiently and effectively administer justice • Continue maintenance of bail schedules, court forms and procedures as legislation dictates • Continue monitoring of interpreter Language Assistance Plan Page 85 DEPARTMENT OBJECTIVE The Court's objective for 2018 is to convert to an electronic (paperless) court management system. STATISTICS/WORKLOAD MEASURES Department Measures 2015 Actuals 2016 Estimated 2017 Estimated 2018 Estimated Criminal - DUI 50.0 36 40 45 Criminal - Other Traffic 361 360 378 390 Criminal - Non -Traffic 436 410 450 460 Infractions - Traffic 1311 1070 1000 1000 Infractions - Non -Traffic 30 36 35 35 1400.0 1200.0 1000.0 800.0 600.0 400.0 200.0 0.0 2015 2016 2017 2018 Actuals Estimated Estimated Estimated PERFORMANCE MEASURES Criminal - DUI Criminal - Other Traffic Criminal - Non -Traffic Infractions - Traffic Infractions - Non -Traffic Pursuant to the provisions of RCW 2.56 and GR 32, and to ensure that minimum service levels of the administration of justice are in place, the Administrative Office of the Courts (AOC) is directed to conduct performance audits of courts under authority of the Supreme Court, in confouuity with criteria and methods developed by the Board for Judicial Administration which have been approved by the Supreme Court. Page 86 STAFFING LEVELS Staffing Levels 2015 Actuals 2016 Estimated 2017 Estimated 2018 Estimated Judge 0.6 0.6 0.6 0.6 Court Administrator 1 1 1 1 Lead Clerk 1 1 1 1 Court Clerk 2.6 2.6 2.6 2.6 Judge Court Administrator • Lead Clerk Court Clerk 2015 Actuals 2016 2017 2018 Estimated Estimated Estimated ACCOMPLISHMENTS The Court continues to efficiently and accurately maintain all court records and effectively administer justice. SIGNIFICANT BUDGET CHANGES No significant budget changes. Page 87 2017-2018 DEPARTMENT OPERATING BUDGET Municipal Court Expenditures 2013~2014 Actual 2015~2016 Budget 2017~2018 Budget 001.2.613.68 10 Salaries &Wages $ 640.612 $ 707.307 $ 764.585 20 Personnel Benefits 261.311 323.820 362.837 Total Salary & Benefits $ 801.924 $ 1,831,226 $ 1.127,202 31 Office & Operating Supplies $ 15.071 $ 15.858 $ 15.858 41 Professional Services 34.540 42.588 38.888 42 Communication 9.107 8.288 10.888 43 Travel 4.001 5.088 5.888 45 Operating Rentals &Leases 7.625 8.888 7.588 48 Repairs &Maintenance 3.040 4.780 8,000 40 Miscellaneous 22.870 44.022 30,258 64 Machinery &Equipment ' 8.200 ' Total Other Expenditures $ 87.871 $ 137.632 $ 123'606 512.50 Notes 31 Books, Postage Meter Supplies, Toner, Office Supplies 41 Probem' Interpreters, Expert Witness Feea, Bailiff 42 Phone, Fax, Postage Meter 45 Postage Meter Rental, Copier/Fax Lease 48 CopierK8aintenaue. FTR Digital Audio Support Contract, K4iaoOffioe Equipment Repairs, Video Support 40 Printing Forms, Assoc Dues, County Clerk Ouries), Training/Conferences, Witness Fees, Shredder Service, Bank Fees 2O17-2018DEPARTMENT BUDGET Salaries *1% Benefits Supplies 1% Services & Charges 9% $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $' ANNUAL BUDGET COMPARISON 2013-204 Actual 2015-2O10 Budget 201r-281O MISSION STATEMENT The mission of the Port Orchard Police Department is to work in partnership with the community to protect life and property and to enhance the quality of life in our city through proactive problem solving, fair and equitable law enforcement, and the effective use of resources. DEPARTMENT DESCRIPTION The Chief of Police is the Director of the Police Department. The Police Department consists of 30 employees and 9 volunteers. The department has one chief, one commander, 3 sergeants, 2 detectives, and 17 police officers. The department is also supported by an office manager, a full time records/evidence specialist, 2 part-time record/evidence specialists, 2 part-time parking enforcement officers and a part-time court security/crime prevention officer. Our volunteer base is made up of one traffic safety assistant, 7 reserve police officers, and a police Chaplain. The police department is a full service problem oriented community based law enforcement agency offering regular patrol functions, detective functions, major crime investigation, crime scene technicians, traffic investigation, motorcycle patrol, bicycle patrol, marine patrol, liquor and vice, narcotics canine, court security, emergency management, parking enforcement, and a school resource officer program. 2017 GOALS • Establish a threat assessment group for the South Kitsap School District. • Maintain appropriate staffing levels for the demands of the City. • Complete 50 community policing projects. 2018 GOALS • Maintain and manage a threat assessment group for the South Kitsap School District. • Maintain appropriate staffing levels for the demands of the City. • Complete 50 community policing projects. NON -FINANCIAL LONG-TERM GOALS • Continue community based problem oriented policing. • Keep crime clearance rates the highest in Kitsap County. Page 89 DEPARTMENT OBJECTIVES • Identify Opportunities. • Imagine the Possibilities. • Align Partners. • Empower Employees. • Think, Act and Move as One. • Engage the Community. • Fulfill the Promise. • Map the Future. DEPARTMENT VALUES • Every employee and their contribution to the department. • Provide opportunities for individual achievement, personal growth and professional development. • Maintain the highest level of integrity, ethics, and morals. • Commit to the concept of teamwork. • Create positive working relationships through community, problem based policing. • We value the sanctity of life and equitable treatment of all people. • We value working with our citizens to solve community based problems. • We serve with pride within ourselves and the community we serve. STATISTICS/WORKLOAD MEASURES Department Measures 2015 Actuals 2016 Estimated 2017 Estimated 2018 Estimated Maintain high crime clearance rates 45.2 50.0 40.0 30.0 20.0 10.0 0.0 ���a\y a,<. e.. area co A ,ti0 A, A, PERFORMANCE MEASURES Maintain high crime clearance rates The Port Orchard police Department reports all crime information through NIBRS. Each year WASPC publishes these crime statistics for public view. This includes crime types, number of reported offences, and clearance rates. Port Orchard maintains the highest clearance rate in Kitsap County. Page 90 STAFFING LEVELS Staffing Levels 2015 Actuals 2016 Estimated 2017 Estimated 2018 Estimated Police Chief 1 1 1 1 Police Commander 1 1 1 1 Police Sergeant 3 3 3 3 Office Manager 1 1 1 1 Records/Evidence Specialist 2.25 2.25 2.25 2.25 Public Service Officer Part -Time 0.75 0.75 0.75 0.75 Parking Enforcement Officer 1 1 1 1 Patrolmen 18 18 18 18 20 18 16 14 12 10 8 6 4 2 0 2015 Actuals 2016 2017 2018 Estimated Estimated Estimated Police Chief Police Commander Police Sergeant Office Manager Records/Evidence Specialist ti Public Service Officer Part - Time Parking Enforcement Officer ACCOMPLISHMENTS Our internal disciplinary process provides accountability and transparency. SIGNIFICANT BUDGET CHANGES The costs for incarceration continue to increase year over year. For 2017-18 budget years the budgeted amount for incarceration costs have been increased to meet estimates. Page 91 2017-2018 DEPARTMENT OPERATING BUDGET Law Enforcement Expenditures 2013-2014 Actual 2015-2016 Budget 2017-2018 Budget 10 Salaries & Wages $ 4,404,633 $ 4,692,162 $ 5,036,803 20 Personnel Benefits 1,637,297 1,871,380 2,093,821 21 Uniforms 31,815 34,300 41,200 Total Salary & Benefits $ 6,073,745 $ 6,597,842 $ 7,171,824 31 Office & Operating Supplies $ 114,794 $ 122,450 $ 162,650 32 Fuel Consumed 157,817 132,000 113,500 41 Professional Services 47,966 59,400 28,000 42 Communication 24,854 27,300 27,200 43 Travel 11,749 26,650 29,400 44 Advertising 30 500 500 45 Operating Rentals & Leases 18,085 24,650 24,600 46 Insurance - 200 200 47 Public Utility Service 814 4,050 2,700 48 Repairs & Maintenance 99,676 113,010 103,300 49 Miscellaneous 51,265 66,350 57,100 51 Intergovernmental Professional Services 1,129,228 1,855,895 2,027,830 64 Machinery & Equipment 4,727 - - 95 Interfund Rentals/Leases 9,419 15,216 15,216 98 Interfund Repairs & Maintenance 33,080 850 - Total Other Expenditures $ 1,703,504 $ 2,448,521 $ 2,592,196 Total Law Enforcement $ 7,777,249 $ 9,046,363 $ 9,764,020 2017-2018 DEPARTMENT BUDGET Benefits 22% 51% ANNUAL BUDGET COMPARISON $12,000,000 $10,000,000 $8,000,000 $6,000,000 Services & $4,000,000 - -- Charges 24% $2,000,000 $- 2013-2014 Actual 2015-2016 Budget 2017-2018 Budget Page 92 2017-2018 DEPARTMENT OPERATING BUDGET Law Enforcement Law Enforcement Expenditures 2013-2014 Actual 2015-2016 Budget 2017-2018 Budget 001.3.521.10 10 Salaries & Wages $ 819,829 $ 881,643 $ 985,842 20 Personnel Benefits 411,777 471,272 535,991 21 Uniforms 1,227 3,000 3,400 31 Office & Operating Supplies 19,612 27,650 34,000 32 Fuel Consumed 5,486 3,500 3,000 41 Professional Services 12,859 2,500 3,500 42 Communication 23,768 25,600 26,000 43 Travel 2,099 10,250 10,000 44 Advertising - 500 500 45 Operating Rentals & Leases 10,303 15,000 15,000 46 Insurance - 200 200 48 Repairs & Maintenance 16,927 22,700 18,500 49 Miscellaneous 13,534 11,000 11,500 51 Intergovernmental Professional Services 225,466 269,092 313,747 98 Interfund Repairs & Maintenance 80 - - Total Administration $ 1,562,966 $ 1,743,907 $ 1,961,180 521.10 Notes 31 RCW Books, Vehicle Tires, Parts & Supplies, Office Supplies & Equipment 41 Promotional Testing, Polygraph, Medical, Psychological Testing, Lateral/Entry Oral Boards, Lateral Testing 44 Employment Advertising, Continuous Lateral Entry Programs, Police Legal Notices/Property Auctions 48 WSP ACCESS Terminal Fees, Municipal Code Codification, Vehicle Maintenance, Radio Repairs, Copier Maintenance 49 Conferences, Membership Dues, Subscriptions, Printing/Publishing, Business Cards, Shredding Service 51 CENCOM Dispatching Services Page 93 2017-2018 DEPARTMENT OPERATING BUDGET Law Enforcement Expenditures Actual Budget Budget 001.3.521.21 10 Salaries &Wages $ 342.600 $ 357.330 $ 381.150 20 Personnel Benefits 90.273 80.388 88.055 21 Uniforms 1.501 3.088 3.888 31 Office & Operating Supplies 4.237 13.888 18.888 32 Fuel Consumed 6.681 6.888 5.888 41 Professional Services 100 3.888 3.888 42 Communication 32 500 ' 43 Travel 375 1.888 3.888 47 Public Utility Services - 200 ' 48 Repairs &Maintenance 3.070 4.000 4.000 40 Miscellaneous 4.745 5.000 7,000 05 |nberfundFlanba|o/Laaoea ' ' ' 98 |nterfundRepairs &Maintenance 1.280 ' ' Total Investigation $ 454,883 $ 483.425 $ 525'114 521.21 Notes 31 Evidence Processing Supp|iao, Vehicle Tireo, Parts, Supplies, Investigative Supplies, Office Supplies, Crime Scene Van Supplies, Lumen Investigation Software 41 Handwriting Exemplar Analysis, WSP Total Station Crew for Response to Suspicious Deaths, Personal and Financial History Searches, Forensic Examinations, Crime Scene Technician Costs 48 Vehicle Maintenance 40 Crime Lab Fees & Shipping, Evidentiary Vehicle Tows 2017-2018 DEPARTMENT OPERATING BUDGET Law Enforcement Law Enforcement (Continued), Expenditures 2013-2014 Actual 2015-2016 Budget 2017-2018 Budget 001.3.521.22 10 Salaries & Wages $ 2,150,457 $ 2,347,170 $ 2,689,094 20 Personnel Benefits 740,965 837,502 1,028,687 21 Uniforms 19,483 20,300 26,800 31 Office & Operating Supplies 31,282 28,000 54,000 32 Fuel Consumed 76,349 64,000 64,000 43 Travel 375 400 400 48 Repairs & Maintenance 35,474 33,000 42,000 49 Miscellaneous 4,859 4,000 5,000 98 Interfund Repairs & Maintenance 18,840 - - Total Patrol $ 3,078,085 $ 3,334,372 $ 3,909,981 001.3.521.23 10 Salaries & Wages $ 45,433 $ 27,600 $ 35,569 20 Personnel Benefits 14,129 10,500 10,675 31 Office & Operating Supplies 2,348 1,950 2,000 32 Fuel Consumed 11,307 10,000 10,000 43 Travel 3,588 2,000 3,000 44 Advertisting 30 - - 45 Operating Rentals & Leases 1,865 2,000 2,000 47 Public Utility Service 114 500 500 48 Repairs & Maintenance 18,157 10,850 6,000 49 Miscellaneous 6,151 15,500 6,000 98 Interfund Repairs & Maintenance 920 250 - Total Marine Patrol $ 104,042 $ 81,150 $ 75,744 521.22 Notes 31 Office Supplies, Reserve Officer Equipment, Vehicle Tires, Parts & Supplies, Flares, Vehicle Warning Devices, Batteries, Lights, M4 Rifle Replacement 48 Emergency Equipment Repair, Vehicle Maintenance, Radio & Light Bar Installations, Fire Extinguisher Recharging, Vehicle Washes, Reserve Vehicle Maintenance 49 Police Vehicles Graphics Replacement, Printing Expenses 521.23 Notes 31 Boating Supplies, Lines, Fenders, Lighting, Charts, GPS, Cleaning Supplies, State Required Education Programs/Materials 45 Vessel Moorage 49 Equipment Installations, Marine Membership, State Required Conferences, Derelict Vessel Abatement Page 95 2017-2018 DEPARTMENT OPERATING BUDGET Law Enforcement Law Enforcement (Continued) Expenditures 2013-2014 Actual 2015-2016 Budget 2017-2018 Budget 001.3.521.25 10 Salaries & Wages $ 170,248 $ 185,028 $ 194,674 20 Personnel Benefits 74,562 92,140 93,889 21 Uniforms 1,210 1,000 1,000 31 Office & Operating Supplies 1,709 4,850 3,500 32 Fuel Consumed 15,971 10,500 6,000 48 Repairs & Maintenance 22 2,000 2,000 49 Miscellaneous 100 600 600 98 Interfund Repairs & Maintenance 1,080 - - Total Gambling Enforcement $ 264,903 $ 296,118 $ 301,663 001.3.521.30 10 Salaries & Wages $ 425,982 $ 452,030 $ 281,976 20 Personnel Benefits 132,549 174,392 110,528 21 Uniforms 4,395 3,000 3,000 31 Office & Operating Supplies 3,700 5,500 5,300 32 Fuel Consumed 19,934 16,000 8,500 48 Repairs & Maintenance 6,141 8,000 3,000 49 Miscellaneous 1,351 2,750 2,500 98 Interfund Repairs & Maintenance 3,400 - - Total Crime Prevention $ 597,453 $ 661,672 $ 414,804 521.25 Notes 49 Reduce Underage Drinking Materials, Responsible Alcohol Service Programs/Brochures, Problem Oriented Policing Materials 521.30 Notes 31 Office Supplies for Volunteers, Bicycles, Parts & Accessories, Vehicle Tires, Parts & Supplies, Emergency Equipment Parts 48 Vehicle & Bicycle Maintenance 49 Associations Dues, Community Policing Projects, Crime Prevention Materials Page 96 2017-2018 DEPARTMENT OPERATING BUDGET Law Enforcement Law Enforcement (Continued) Expenditures 2013-2014 Actual 2015-2016 Budget 2017-2018 Budget 001.3.521.40 31 Office & Operating Supplies $ 19,434 $ 20,400 $ 25,750 41 Professional Services 990 1,500 1,000 43 Travel 5,107 12,000 12,000 45 Operating Rentals & Leases 1,313 4,000 4,000 47 Public Utility Services 700 3,350 2,000 48 Repairs & Maintenance 95 2,000 2,000 49 Miscellaneous 16,229 18,000 18,000 98 Interfund Repairs & Maintenance - - - Total Training $ 43,868 $ 61,250 $ 64,750 001.3.521.50 10 Salaries & Wages $ 1,185 $ - $ - 20 Personnel Benefits 430 - - 31 Office & Operating Supplies 694 - - 45 Operating Rentals & Leases 3,600 3,600 3,600 47 Public Utility Service - - 200 48 Repairs & Maintenance 4,867 2,560 2,600 49 Miscellaneous 76 1,500 1,000 95 Interfund Operating & Rentals 9,419 15,216 15,216 Total Facilities $ 20,271 $ 22,876 $ 22,616 521.40 Notes 31 Defensive Tactics Equipment, Office Supplies, Ammo Up Brass Roller, T&E RMR Handgun Sight, Cert Pistol & Rifle Lasers, Ammunition, Targets 41 Outside Speakers, Instructors 43 Vehicle Expenses Related to Travel for Training, Commercial Transportation, Food & Lodging 45 Portable Restroom Facilities at Current Police Range, Trainig Room Facilities Rental, EVOC Track Rental 49 Tuition & Registration Costs 521.50 Notes 45 Storage Garage 48 Security Monitoring 95 Storage Facilities Page 97 2017-2018 DEPARTMENT OPERATING BUDGET Law Enforcement Law Enforcement (Continued) Expenditures 2013-2014 Actual 2015-2016 Budget 2017-2018 Budget 001.3.521.70 10 Salaries & Wages $ 448,184 $ 441,252 $ 468,489 20 Personnel Benefits 172,094 195,138 214,096 21 Uniforms 3,909 4,000 4,000 31 Office & Operating Supplies 14,354 12,000 10,000 32 Fuel Consumed 17,683 17,000 12,000 41 Professional Services - 500 500 42 Communications 41 200 200 43 Travel 206 1,000 1,000 45 Operating Rentals & Leases 11 50 - 48 Repairs & Maintenance 14,844 25,900 21,200 49 Miscellaneous 3,928 6,500 4,000 51 Intergovernmental Professional Services 5,000 5,000 5,000 98 Interfund Repairs & Maintenance 5,560 - - Total Traffic Policing $ 685,813 $ 708,540 $ 740,485 Total Law Enforcement 6,812,83 $', 7,393,310 $ 8,016,337 521.70 Notes 31 Vehicle Tires, Parts & Supplies, Pursuit Immobilization Devices, Motorcycle Parts, Office Supplies, Parking Supplies 41 WSP Total Station Crew Response for Fatalities 48 Vehicle Maintenance, ALPR Unit Maintenance, Motorcycle Maintenance, Radar Unit Maintenance, Radar Calibration, Parkeon Machine Upgrades 49 Shipping for Radar Units, Shipping for Preliminary Breath Tests, Ticket Books/E-Tickets 51 Traffic Safety Task Force Fee Page 98 2017-2018 DEPARTMENT OPERATING BUDGET Law Enforcement Detention and Correction Expenditures 2013-2014 Actual 2015-2016 Budget 2017-2018 Budget 001.3.523.20 10 Salaries & Wages $ 120 $ 100 $ - 20 Personnel Benefits 70 50 - 31 Office & Operating Supplies 1,135 500 500 32 Fuel Consumed 4,405 5,000 5,000 41 Professional Services - - - 45 Operating Rentals and Leases 993 - - 48 Repairs & Maintenance 80 2,000 2,000 49 Miscellaneous 292 500 500 51 Intergovernment Professional Service 73,116 87,228 92,000 98 Interfund Repairs & Maintenance 1,920 600 - Total Monitoring Prisoners $ 82,130 $ 95,978 $ 100,000 001.3.523.60 31 Office & Operating Supplies $ 16,065 $ 7,000 $ 7,000 41 Professional Services 34,017 51,900 20,000 51 Intergovernment Professional Service 795,196 1,458,947 1,576,345 Total Care/Custody/Prisoners $ 845,279 $ 1,517,847 $ 1,603,345 Total Detention and Correction $ 927,408 $ 1,613,825' $ 1,703,345 523.20 Notes 48 Repair Community Service Van, Miscellaneous Repairs 51 KCR-Community Service Program 523.60 Notes 31 Prisoner Prescriptions 41 Prisoner Medical Services 51 Prisoner Boarding Kitsap County, City of Forks Jail Page 99 2016 DEPARTMENT OPERATING BUDGET Law Enforcement Expenditures Actual Budget Budget 881.3.52610 51 |nbsrgm/|Professional Srvo-Emergenoy $ 30.450 $ 35.828 $ 40.738 Total Emergency Sorv|mnoAdmmin $ 30,450 $ 35,628 $ 40,738 001.I526.60 10 Salaries &Wages $ 595 $ - $ - 20 Personnel Benefits 448 - - 31 Office & Operating Supplies 225 1'600 1'600 42 Communication 1.013 1.000 1.000 43 Travel - - - 48 Repairs & Maintenance - - - 49 Miscellaneous - 1.000 1.000 525.10 Notes 51 KitaapCounty Emergency Management 525.60 Notes 31 Backup Power Supplies, Site Communications & Set-up, Food & Water, Respirators, Cots 40 Department Training onHazmaLVVK4D.Terrorism Tuition Costs for FEK4/\ 2015 DEPARTMENT OPERATING BUDGET Law Enforcement Machinery & Equipment Expenditures 2013-2014 Actual 2015-2016 Budget 2017-2018 Budget' 001.3.594.21 64 Machinery & Equipment Total Machinery & Equipment $ 4,727 $ - $ - $ 4,727 $ - $ - Total Machinery &Equipment $ 4,727 $ $- Page 101 MISSION STATEMENT Provide and administer planning, building, and code enforcement services that emphasize efficient and effective customer service and professional expertise while supporting the goals of the community, the Mayor, and the City Council. DEPARTMENT DESCRIPTION The Department of Community Development is responsible for the city's planning, building, and land use code enforcement functions. Department staff is responsible for long range planning which includes tasks such as reviewing and processing amendments to the city's comprehensive plan, updating the city's plans, ensuring consistency between the city's technical infrastructure plans and its land use plans, capital budgeting, and updates to the city's development regulations. Long range planning tasks also include public outreach whether that be planning and staffing public hearings at the Planning Commission, setting up surveys to gather public input, or exploring other innovative methods of facilitating communication between the city and its elected officials and the public. The department is also responsible for short range planning activities which includes tasks such as building permit application review, business license application review, sign permit review, meeting with prospective developers, conducting environmental review, and ensuring that site development pelniits issued through the public works department also comply with the city's land use regulations and critical area protections. The department also coordinates with other local, state, and federal agencies on plan development and project review. This includes attending and actively participating in regional planning meetings, providing notice of planning activities and development projects to affected agencies such as WSDOT, South Kitsap Fire and Rescue, Kitsap Public Health, Kitsap Transit, the Department of Ecology, the Department of Fish and Wildlife, FEMA, or the Department of Natural Resources, and reporting to state and federal agencies as required by law. 2017 GOALS • Best Available Science Review. Complete an analysis of the development regulations for Best Available Science as required by law (June 30, 2017 Deadline). • Grant Implementation. Coordinate the purchase of property located along Bay Street for the Bay Street Pedestrian Path as a result of Recreation Conservation Office grant funding. • Grant Implementation. Coordinate the construction of the McCormick Phase 2 park improvements. • Wayfinding Signs. Work with the Public Works department to implement phase 2 of the wayfinding sign program. • Dangerous/Abandoned Buildings. Continue to enforce land use codes concerning dangerous and abandoned buildings and seek abatement if required (1-2 houses annually). Page 102 • Launch SmartGOV public portal. • Staff Participation in the KRCC Planning Directors Meeting. Attend and participate in monthly meetings of the Planning Directors to develop policies and recommendations for the KCRC. • Development Review. Review applications as submitted within the required timelines. 2018 GOALS • Wayfinding Signs. Work with the Public Works department to implement phase 2 of the wayfinding sign program. • Dangerous/Abandoned Buildings. Continue to enforce land use codes concerning dangerous and abandoned buildings and seek abatement if required (1-2 houses annually). • Staff Participation in the KRCC Planning Directors Meeting. Attend and participate in monthly meetings of the Planning Directors to develop policies and recommendations for the KCRC. • Development Review. Review applications as submitted within the required timelines. NON FINANCIAL LONG-TERM GOALS • Professional policy guidance. Provide professional policy guidance to the Mayor, City Council, Council Committees, Planning Commission, Design Review Board and other City departments on all matters related to land use, the built environment, building, code enforcement, and long range comprehensive planning within the City and its unincorporated urban growth area (UGA). • Community planning activities. Provide direction for community planning efforts, including the development of neighborhood and sub -area plans, economic and community development, future capital facility needs and facilitation of community participation in City planning efforts, including periodic updates to the city comprehensive plan thus insuring compliance with the State of Washington Growth Management Act (GMA) goals and policies. • Public Participation. Provide a variety of opportunities for public participation in the planning process. • Land use permit process. Administer the City of Port Orchard's land use permit process for the review and processing of developments under the City Zoning Code, Title 16 of the Port Orchard Municipal Code (POMC); shoreline management permits under the State Shoreline Management Act (RCW 90.58) and city Shoreline Master Program; subdivisions, short plats and boundary line adjustments; environmental policy per RCW 43C.21; design review pursuant to POMC Title 16; and review and update city land use development codes and maps, as appropriate. • Port Orchard Design Review Board. Provide staff support and professional guidance to the Port Orchard Design Review Board pertaining to the City's design standards, downtown overlay district, and land use application activities. • Port Orchard Planning Commission. Provide staff support and professional guidance to the City of Port Orchard Planning Commission. • Hearing Examiner. Provide administrative services for the office of the Hearing Examiner. Prepare staff reports, public noticing, distributions, and professional representation for public hearings. • Urban Growth Area Project Review. Review applications and environmental assessment reports on projects within unincorporated Kitsap County lying within the city's urban growth area in order to provide comment on the impacts and to recommend mitigation measures to the Kitsap County Department of Community Development. Page 103 • Annexation Guidance. Provide guidance to landowners or interest groups who desire to annex unincorporated areas into the City of Port Orchard, consistent with state law and the city's annexation policy. Process annexation petitions with Kitsap County, the Kitsap Regional Coordinating Council, and the Kitsap Boundary Review Board. • Code Enforcement. Provide enforcement of the city's land -use development, environmental and nuisance codes in a fair, equitable and timely manner. Enforcement coordinates with other departments and agencies in resolving complaints and provides a positive client -service attitude to enhance the city's enforcement of land -use and nuisance codes. • Inter -Governmental Relations. Act as liaison between City, county, regional, state, tribal and federal governmental organizations and agencies, representing the interests of the City of Port Orchard and its citizens. This includes continued involvement in inter jurisdictional coordination under the Growth Management Act. • Grant Development. Develop grant applications with county, regional, state, and federal agencies for City of Port Orchard projects related to parks, planning, building, engineering, public works, capital facilities and economic development. • Economic Development. Facilitate and produce products that assist the city in the pursuit of the adopted goals and funding for the economic development projects identified by the Mayor and City Council. DEPARTMENT OBJECTIVE Annual Comprehensive Plan update. Annually consider amendments to the Port Orchard Comprehensive Plan to include possible revisions to the land use element map based upon City Sub -Area Planning efforts and/or processing privately initiated amendments. STATISTICS/WORKLOAD MEASURES Department Measures 2015 Actuals 2016 Estimated 2017 Estimated 2018 Estimated Number of Building Permits Issued 474 Number of Code Enforcement Actions Initiated 125 Number of Land Use Permits Processed 60 Number of Comprehensive Plan Amendments Processed 1 Business Licenses Reviewed 744 Event, Cabaret, and Marijuana Licenses Approved/Reviewed 49 Pre -Application Meetings 22 Population 13,510 13,810 14,125 14,450 City Area (Square Miles) 9.35 9.35 9.35 9.35 Page 104 16000 14000 12000 10000 8000 6000 4000 2000 0 Number of Building Permits Issued Number of Code Enforcement Actions Initiated Number of Land Use Permits Processed Number of Comprehensive Plan Amendments Processed Business Licenses Reviewed PERFORMANCE MEASURES Peiiiiiting activity has remained steady from 2015-2016. We expect building permit activity to increase considerably in 2017 and 2018 with minor increases in other activity. Staffing levels are proposed to be maintained at current levels in 2017-2018. STAFFING LEVELS Staffing Levels 2015 Actuals 2016 Estimated 2017 Estimated 2018 Estimated City Development Director 1 1 1 1 Administrative Assistant Planning 0.35 0.35 0.7 0.7 Office Manager/Permit Cordinator 1 1 1 1 Associate Planner 2 2 2 2 Long -Range Associate Planner 1 1 1 1 Code Enforcement 1 1 1 1 Building Inspector 1 1 1 1 Building/Planning Office Assistant 1 1 1 1 Permit Clerk 0 0 1 1 Page 105 City Development Director Administrative Assistant Planning Office Manager/Permit Cordinator Associate Planner u�t Long -Range Associate Planner Building/Planning Office Assistant Permit Clerk 2015 Actuals 2016 Estimated 2017 Estimated 2018 Estimated ACCOMPLISHMENTS The 2016 Comprehensive Plan was the departments biggest accomplishment of 2016. The plan was approved, was not appealed, and is on track for an October 2016 certification from PSRC. Other accomplishments include the review of 7 permits requiring Hearing Examiner review, an all time high for permits of this type. One particular review, the Stetson Heights project was the largest, most complex, and controversial residential project ever reviewed by the DCD. Other projects that have been initiated and/or completed include the design of the McCormick Village Park Phase 2 project, the way finding sign phase 1 project, the acquisition of the 640 Bay Street property, and the acquisition of the Comfort Inn (beach) property. Numerous ordinances were brought forward for City Council approval including: • Interim Subdivision and Petinit Processing Regulations • 2015 Building and Fire Code Adoption • Marijuana Code Updates • Street Use Peimit Code • Multi Family Tax Exemption Code Other code updates were initiated including: • Complete Overhaul of the Development Regulations • Minor Shoreline Master Program Updates • Sign Code Update • DOD Overlay District Update • VPOD Code Update • Landscape and Parking Code Update Page 106 SIGNIFICANT BUDGET CHANGES In 2017, the City proposes to consolidate all permitting into a single "Permit Center." The permit center would be the location where all public works, planning, and building permits are to be submitted, routed, tracked, and returned to the customer. As part of this proposed change, there is some minor reorganization that is proposed, but no additional staff requested. In conjunction with the creation of a permit center, the City has purchased the 720 Prospect Street building. This will be the location of the permit center and the Department of Community Development. There are some minor increases to certain budget lines to account for providing supplies and equipment for this new space and to accommodate any unforeseen expenses related to the move. Page 107 2017-2018 DEPARTMENT OPERATING BUDGET Department of Community Development Expenditures 2013-2014 Actual 2015-2016 Budget 2017-2018 Budget 10 Salaries & Wages $ 881,277 $ 1,092,124 $ 1,422,327 20 Personnel Benefits 307,845 494,186 646,633 Total Salary & Benefits $ 1,189,121 $ 1,586,310 $ 2,068,960 31 Office & Operating Supplies $ 8,623 $ 25,800 $ 27,800 32 Fuel Consumed 4,039 3,300 3,000 41 Professional Services 75,475 230,500 215,600 42 Communication 6,783 12,240 11,200 43 Travel 6,185 11,225 14,600 44 Advertising 1,040 2,600 2,600 45 Operating Rentals & Leases 4,330 4,200 19,500 46 Insurance - 150 - 48 Repairs & Maintenance 15,709 8,800 2,100 49 Miscellaneous 41,616 101,765 153,500 51 Intergovernmental Professional Services - - 100,000 64 Machinery & Equipment - 4,885 - 98 Interfund Repairs & Maintenance 2,240 2,600 - Total Other Expenditures $ 166,040 $ 408,065 $ 549,900 Total Community Development $ 1,355,162 $ 1,994,375 $ 2,618,860 For additional detail, see worksheets for Building Inspections and Community Development. 2017-2018 DEPARTMENT BUDGET Benefits 25% Salaries 54% Supplies 1% Services & Charges 20% $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 - ANNUAL BUDGET COMPARISON $- 2013-2014 2015-2016 Actual Budget Page 108 2017-2018 DEPARTMENT OPERATING BUDGET Department of Community Development Building Inspections Expenditures 2013-2014 Actual 2015-2016 Budget 2017-2018 Budget 001.4.517.91 31 Office & Operating Supplies $ 566 $ 200 $ 200 43 Travel 766 600 600 49 Miscellaneous 325 1,200 1,200 Total Commute Trip Reduction $ 1,657 $ 2,000 $ 2,000 001.4.519.20 49 Miscellaneous $ 10,000 $ - $ - Total Miscellaneous 10,000 - - 001.4.524.20 10 Salaries & Wages $ 228,601 $ 292,698 $ 395,404 20 Personnel Benefits 73,780 139,519 213,914 31 Office & Operating Supplies 4,525 11,650 9,100 32 Fuel Consumed 3,231 2,400 2,000 41 Professional Services 51,420 59,900 60,000 42 Communication 2,392 4,080 4,800 43 Travel 2,096 4,275 5,000 45 Operating Rentals & Leases 1,010 1,200 5,100 46 Insurance - 100 - 48 Repairs & Maintenance 6,482 2,300 1,100 49 Miscellaneous 12,710 17,630 18,900 51 Intergovernmental Professional Services - - 100,000 98 Interfund Repairs & Maintenance 1,160 1,000 - Total Building Inspections $ 387,406 $ 536,752 $ 815,318 Total Building Inspections $ 389,064 $ 538,752' $ 817,318 524.20 Notes 31 Car Parts & Supplies, Office Supplies, Materials for Notices 41 Supplemental Building Inspection Services, Backup Inspection Services 48 Postage Meter, Office Equipment Repair, Copier Maintenance 49 Forms, Subscriptions, Conferences, Dues, Printing, SMARTGov Software and Training 98 Interfund Repairs & Maintenance Page 109 2017-2018 DEPARTMENT OPERATING BUDGET Department OfCommunity Development Expenditures Actual Budget Budget 881��56QQU 10 Salaries &Wages $ 651.281 $ 798.428 $ 1.025.923 20 Personnel Benefits 233.868 354.267 432.239 31 Office & Operating Supplies 3.522 13'350 17.900 32 Fuel Consumed 808 000 1.000 41 Professional Services 24.055 170.000 155.000 42 Communications 4.381 8'160 6.400 43 Travel 3.323 6.350 0.000 44 Advertising 961 2.000 2.000 45 Operating Rentals &Leases 3.153 3'000 14'400 40 Insurance - 50 - 48 Repairs &Maintenance 0.228 8.500 1.000 49 Miscellaneous 18.582 22.935 33.400 98 |nbsrfundRepairs &Maintenance 1.080 1'800 - Total Planning $ 954,050 $ 1,387,538 $ 1,698'262 001.4.558.62 10 Sa|arieo&VVageo $ 831 $ - $ - 20 Personnel Benefits 138 - - 44 Advertising 70 - - Total TDRGrant $ 1,046 $ - $ - 558.60 Notes 31 Uniform Code Enforcement, Graphics Materials, Public Notice Signs, Office & Operating Supplies, Conference Room Furnishings, Updated Aerial Photography 41 Expedited Review, On Call Services, Hearing Examiner, Design Guidelines Creation, Shoreline Master Program Required Update 48 Postage Meter, 40 Subscriptions, Dues, Seminar Fees, Printing, Conferences, Software, Training 98 |ntorfundRepairs &Maintenance Paoo11n 2017-2018 DEPARTMENT OPERATING BUDGET Department OfCommunity Development Expenditures Actual Budget Budget 881��56Q3U 10 Salaries &Wages $ 564 $ 1'000 $ 1'000 20 Personnel Benefits 263 400 480 31 Office & Operating Supplies 9 600 600 41 Professional Services - 600 600 44 Advertising - 600 600 45 Operating Rentals &Leases 167 - - 40 Miscellaneous - 60.000 100.000 Total Property Development $ 1,002 $ 83,200 $ 103,280 001.4.594.58 64 Machinery &Equipment $ - $ 4.885 $ - Total Machinery Q"Equipment $ - $ 4'885 $ - Total Property Development, Machinery & Equipment $ 1,002 $ 68,085 $ 103,280 559.30Notas 49 Contracted Abatement Paoo111 MISSION STATEMENT The Public Works Department for the City of Port Orchard strives to provide safe and reliable utilities by exceeding expectations, and excepting excellence as the standard. Through efficient and effective response, prudent management, and maintaining a dedicated staff focused on leadership, these goals help Public Works to provide reliable service to a growing and robust community. DEPARTMENT DESCRIPTION The City of Port Orchard Public Works Department is the proud caretaker of the City's infrastructure that includes two water systems with daily water supply capacity of 4.77 million gallons, operates and maintains 28.73 miles of sanitary sewer system, more than 54.2 lane miles of roads, maintains 1,024 traffic signs and 16 traffic control devices, 22.43 miles of culverts/storm water pipe, 1,339 publicly owned and maintained catch basins, 71.76 acres of parks and 31 structures and buildings. DIVISIONAL OVERVIEW The success of the City of Port Orchard Public Works Department as a whole is a direct result of partnerships among its divisions, the unselfish desire to contribute, and the diverse talent and qualifications of respective staff. The Public Works Department is comprised of Engineering, Public Works Maintenance (shop personnel), Stormwater Management, and Administration. ADMINISTRATION MISSION STATEMENT To plan, oversee and improve the Department's administrative activities and to ensure that expectations are met or exceed in the most efficient, effective, responsive and responsible manner. ENGINEERING & STORMWATER MISSION STATEMENT To provide engineering expertise, architectural design, stoiiiiwater and construction management services for the City, its departments and other governmental agencies in the most efficient, effective, responsive and responsible manner. ROAD & PARK MAINTENANCE MISSION STATEMENT To provide and maintain all City roads and parks in a safe and accessible condition in the most efficient, effective, responsive and responsible manner. Page 112 FACILITIES MANAGEMENT MISSION STATEMENT To provide and maintain a safe, accessible and functional environment for employees, tenants and visitors of all City facilities and grounds in the most efficient, effective, responsive and responsible manner. SHOP MECHANIC MISSION STATEMENT To provide and maintain safe, reliable and appropriate vehicles, heavy equipment and fleet services for all City Departments in the most efficient, effective, responsive and responsible manner. 2017 GOALS • Well #13 Drilling and Construction • Well #9 Filtration and Treatment Construction • Complete Annual Water Main Replacement Program • Complete Annual Fire Hydrant Inspection and Maintenance Program • Improve Annual Cross Connection Program • Installation of City Water PRV's • Clean and Inspection all City Reservoirs • Well #13 - Commence Drilling and Construction • Well #9 - Commence Filtration and Treatment Retrofit Construction • Complete Annual Water Main Replacement Program • Complete Annual Fire Hydrant Inspection and Maintenance Program • Improve Annual Cross Connection Program • Installation of City Water PRV's • Clean and Inspection all City Reservoirs • Water Rights Management Plan Commencement • Commence McCormick Park - Phase 2 Construction • Bay Street Pedestrian Pathway — Segment #3 Construction completed • Commence Bethel Road Corridor Redesign Plan • Annual Sidewalk and ADA Upgrade Program Implementation • Design upgrade for McCormick #1 & #2 Sewer Lift Stations • Bay Street Sewer Lift Station Pump Upgrade • Continue McCoiiillck Step System Conversions • Install stand-alone Emergency Generator at Eaglecrest Sewer Lift Station • Annual Lund Bridge Repairs & Inspections • Pavement Management System (PMS) Implementation • Commence Construction Phase for the Tremont Street Widening Project • Storm Utility LID Code Implementation • Commence SR 160 Corridor Study • Complete Bay Street Pedestrian Pathway Acquisitions Page 113 2018 GOALS • Well #13 Construction Completion • Complete Annual Water Main Replacement Program • Complete Annual Fire Hydrant Inspection and Maintenance Program • Improve Annual Cross Connection Program • Installation of City Water PRV's • Water Rights Management Plan Completion • Complete City Wide Leak Detection • McCormick #1 Sewer Lift Station Upgrade • Continue McCormick Step System Conversions • Utilize Pavement Management System (PMS) • Bay Street Pedestrian Pathway Acquisitions (if needed) • Bethel Road Corridor Redesign Completion • Annual Sidewalk and ADA Upgrade Program • Water/Sewer rate structure implementation • Complete SR 160 Corridor Study NON FINANCIAL LONG-TERM GOALS • Cross -train Public Works Crew across diverse disciplines • Improve Public Works Crew ability to keep construction work in-house • Increase Public Works talent pool • Streamline Public Works workflow through improved staffing organization • Provide positive and meaningful direction for Public Works staff • Continue to improve response time to public service requests • Coordinate with the public on challenges for local developers DEPARTMENT OBJECTIVE • Maintain & improve reliable services • Maintain & improve reliable utilities • Increase efficiency of Public Works responsiveness to its citizens STATISTICS/WORKLOAD MEASURES Department Measures 2015 Actual 2016 Estimated 2017 Estimated 2018 Estimated Number of Public Works Contracts Issued 36 38 39 40 Number of Public Works Purchase Orders 51 51 52 53 Number of Public Works Complaints Received 354 360 365 370 Number of Public Works Complaints Resolved 354 360 365 370 City Area 9.35 9.35 9.35 9.35 Locates 0 670 703 704 Page 114 800 700 600 500 400 300 200 100 0 2015 2016 2017 2018 Actuals Estimated Estimated Estimated PERFORMANCE MEASURES Number of Public Works Contracts Issued Number of Public Works Purchase Orders Number of Public Works Complaints Received Number of Public Works Complaints Resolved ln City Area ocates With a growing population, the Public Works Department has seen increased volume in customer requests/complaints resulting in additional front desk and call out activity. Due to development in Port Orchard, the demand for various public works services and information requests has risen significantly. STAFFING LEVELS Staffing Levels 2015 Actuals 2016. Estimated 2017. Estimated 2018 Estimated Public Works Director/City Engineering 1 1 1 1 Assistant City Engineer 1 1 1 1 Stormwater Program Assistant 1 1 0 0 GIS Specialist/Devel. Review Assistant 1 1 1 1 Public Works Office Manager 1 1 1 1 Public Works Office Assistants 1 1.6 1.6 0.6 0.6 Public Works Forman 1 1 1 1 Public Works Supervisor/Water Systems Manager 0 0 1 1 City Mechanic 1 1 1 1 City Electrician 1 1 1 1 PW Crew 8 8 8 8 Water System Coordinator (PW Crew) 1 1 1 1 Storm Water Program Manager 0 0 1 1 Stormwater Employee (PW Crew) 1 1 1 1 Parks Maintenance 2 2 2 2 Parks Maintenance (Summer Help) 2 2 4 4 Page 115 2015 Actuals 2016 Estimated 2017 Estimated 2018 Estimated ACCOMPLISHMENTS Public Works Director/City Engineering Assistant City Engineer Stormwater Program Assistant GIS Specialist/Devel. Review Assistant Public Works Office Manager Public Works Office Assistants I Public Works Forman Public Works Supervisor/Water Systems Manager • City Mechanic City Electrician PW Crew Water System Coordinator (PW Crew) Storm Water Program Manager Stormwater Employee (PW Crew) Parks Maintenance ;,_'.. Parks Maintenance (Summer Help) Public Works has invested time and energy into designing significant improvements for both its water and sewer systems. These efforts will allow for construction to begin on projects that will certainly improve those utilities not just for the near future, but generations to come. In the first nine months of 2016 Public Works was able to keep some construction and repair projects in house which resulted in approximately $350,000 worth of savings. A list of 2016 accomplishments include: • Bay Street at Arnold Creek Culvert Repair • SR -166 Ditching • Farragut Sewer Main Repair • Sewer Later Repairs • Water Main Replacements • Tremont Boulevard Sewer Repair • LID Code Update/Implementation • Dekalb Pier Retrofit/Expansion Page 116 • Bethel Corridor Pavement Repairs • Crosswalk Marking Policy • Water, Sewer, Storm & Transportation Plan Updates • Water, Sewer Gap Analysis & Rate Modifications • Well #9 Retrofit Design • Regional Decant Facility Completion • McCormick Park Phase 2 Design • Bay Street Pedestrian Pathway Segment #3 Design • Tremont Street Widening Final Ad -Ready Design SIGNIFICANT BUDGET CHANGES No significant budget changes. Page 117 2017-2018 DEPARTMENT OPERATING BUDGET Public Works Department Expenditures 2013-2014 Actual 2015-2016 Budget 2017-2018 Budget 10 Salaries & Wages $ 215,837 $ 171,160 $ 139,044 20 Personnel Benefits 81,627 75,017 69,064 Total Salary & Benefits $ 297,464 $ 246,177 $ 208,108 31 Office & Operating Supplies $ 49,154 $ 17,500 $ 12,400 32 Fuel Consumed 2,946 4,000 2,000 41 Professional Services 46,675 141,560 148,420 42 Communication 10,410 12,600 14,100 43 Travel 174 850 750 44 Advertising 218 500 400 45 Operating Rentals & Leases 46,747 50,000 40,400 46 Insurance 536,464 274,000 289,100 47 Public Utility Services 111,457 119,600 126,000 48 Repairs & Maintenance 94,937 203,450 220,750 49 Miscellaneous 16,307 27,650 36,300 98 Interfund Repairs & Maintenace 3,260 - - Total Other Expenditures $ 918,747 $ 851,710 $ 890,620 62 Buildings & Structures $ 8,737 $ - $ - 64 Machinery & Equipment 47,190 98,900 - Total Capital Expenditures $ 55,927 $ 98,900 $ - Total Public Works $ 1,272,137 $ 1,196,787 $ 1,098,728 For additional detail, see worksheets for Engineering, Other Governmental Services, Library Services & Facilities 2017-2018 DEPARTMENT BUDGET Salaries 13% Services & Charges 80% ANNUAL BUDGET COMPARISON $1,300,000 $1,250,000 Benefits 6% $1,200,000 Supplies 1% $1,150,000 $1,100,000 $1,050,000 $1,000,000 2013-2014 2015-2016 2017-2018 Actual Budget Budget Page 118 2017-2018 DEPARTMENT OPERATING BUDGET Public Works Department Expenditures Actual Budget Budget 001.5.518.20 10 Salaries &Wages $ 180.380 $ 152.431 $ 105.665 20 Personnel Benefits 51.547 64.554 50.886 31 Office & Operating Supplies 2.406 3.500 3.000 32 Fuel Consumed 2.386 3.500 2.000 41 Professional Services 1.463 16.500 10.500 42 Communication 5.264 5.500 5.500 43 Travel 174 750 750 44 Advertising 218 400 400 45 Operating Rentals &Leases 2.402 3.500 1.500 48 Repairs &Maintenance 9.768 3.700 3.750 40 Miscellaneous 15.320 25.500 31.200 98 |nhmrfundRepairs &Maintenance 2.840 - - Total Engineering/Property KOanagmmnntServices $ 354,277 $ 279,835 $ 215,151 518.20 Notes 31 Car Expenses, Office Supplies, Copier Materials 41 GIS Techinical Support, MRSC Roster, Vlist Property Annual Monitoring & Reporting 48 Copiar& Office Equipment K4aintananoa, Vehicle Repair 49 Dues, Seminar Fees, Code Codification Fees, Miscellaneous, Printing, SMARTGov Permit Software License, Support, Maintenance, Public Records Requenta(StaffTime) Paoo110 2017-2018 DEPARTMENT OPERATING BUDGET Public Works Department Expenditures Continued Actual Budget Budget 001.5.518.30 10 Salaries &Wages $ 51.738 $ 16.802 $ 30.200 20 Personnel Benefits 28.403 8.886 16.172 31 Office & Operating Supplies 45.145 13.100 9.400 32 Fuel Consumed 550 500 - 41 Professional Services 45.211 125.060 137.820 42 Communication 5.146 7.100 8.600 43 Travel - 100 - 44 Advertising - 100 - 45 Operating Rentals &Leases 44.255 46.500 38.800 46 Insurance 536.464 274.000 280.100 47 Public Utility Services 83.572 88.600 04.000 48 Repairs &Maintenance 81.483 182.150 200.000 40 Miscellaneous 873 1.150 4.100 98 |nhmrfundRepairs &Maintenance 420 - - Total Facilities/Other Governmental Services $ 903,358 $ 764,148 $ 828,392 518.30 Notes 31 Cleaning Materials, Repair Parts, Equipment, Painting Supplies, Phones 41 Full-time Janitorial, Phone Data, City Hall Exterior Report 45 DNRWaterfront Aquatic Lease (Lot 1&2) 48 Alarm K4onitoring, Electrical Rapairs, Elevator Maintenance, Fire System Maintenance, HVAC Maintenance Rapaira, Phone System Repaira, City Hall Repairs 2017-2018 DEPARTMENT OPERATING BUDGET Public Works Department Other Governmental Services Expenditures 2013-2014 Actual 2015-2016 Budget 2017-2018 Budget 001.5.559.30 10 Salaries & Wages $ 44 $ - $ - 20 Personnel Benefits 44 - - Total Community Development $ 89 $ - $ - 001.5.594.18 10 Salaries & Wages $ 360 $ - $ - 20 Personnel Benefits 75 - - 62 Buildings & Structures 8,737 - - 64 Machinery & Equipment 47,190 98,900 - Total Capital Expenditures $ 56,362 $ 98,900 $ - Total Other Governmental Services $ 56,451 $ 98,900 $ - Library Services and Facilities Expenditures 2013-2014 Actual 2015-2016 Budget 2017-2018 Budget 001.5.572.50 10 Salaries & Wages $ 3,305 $ 1,927 $ 3,179 20 Personnel Benefits 1,468 1,477 2,006 31 Office & Operating Supplies 1,603 900 - 47 Public Utility Services 27,885 31,000 32,000 48 Repairs & Maintenance 23,686 17,600 17,000 49 Miscellaneous 105 1,000 1,000 Total Library Facilities $ 58,052 $ 53,904 $ 55,185 Total Library Services & Facilities $ 58,052 $ 53,904 $ 55,185 572.50 Notes 48 HVAC Maintenance Contract, Other Repairs, Replace A/C Unit Page 121 2017-2018 DEPARTMENT OPERATING BUDGET Parks and Recreation Expenditures 2013-2014 Actual 2015-2016 Budget 2017-2018 Budget 10 Salaries & Wages $ 192,645 $ 286,078 $ 339,889 20 Personnel Benefits 57,886 126,956 143,086 Total Salary & Benefits $ 250,531 $ 413,034 $ 482,975 31 Office & Operating Supplies $ 24,451 $ 33,400 $ 36,100 32 Fuel Consumed 6,845 6,800 6,000 41 Professional Services 19,289 52,000 76,000 42 Communication 1,291 1,810 1,560 43 Travel - 100 - 45 Operating Rentals & Leases 2,076 2,000 2,960 47 Public Utility Services 41,406 58,900 60,000 48 Repairs & Maintenance 38,221 56,600 79,000 49 Miscellaneous 1,636 2,050 2,000 Total Other Expenditures $ 135,216 $ 213,660 $ 263,620 62 Buildings & Structures $ - $ 16,200 $ - 63 Other Improvements 73,837 - - 64 Machinery & Equipment - 15,000 - Total Capital Expenditures $ 73,837 $ 31,200 $ - Total Parks and Recreation $ 459,583 $ 657,894 $ 746,595 For additional detail, see worksheet for Parks and Recreation. 2017-2018 DEPARTMENT BUDGET Services & Charges 30% Supplies 6% Benefits 19% $800,000 $700,000 $600,000 $500,000 $400,000 $300,000 Salaries 45% $200,000 $100,000 $- ANNUAL BUDGET COMPARISON 2013-2014 Actual 2015-2016 Budget 2017-2018 Budget Page 122 2017-2018 DEPARTMENT OPERATING BUDGET Parks and Recreation Parks Expenditures 2013-2014 Actual 2015-2016 Budget 2017-2018 Budget 001.5.576.80 10 Salaries & Wages $ 192,158 $ 284,678 $ 339,889 20 Personnel Benefits 57,682 126,556 143,086 31 Office & Operating Supplies 24,451 33,400 36,100 32 Fuel Consumed 6,845 6,800 6,000 41 Professional Services 19,289 52,000 76,000 42 Communication 1,291 1,810 1,560 43 Travel - 100 - 45 Operating Rentals & Leases 2,076 2,000 2,960 47 Public Utility Services 41,406 58,900 60,000 48 Repairs & Maintenance 38,221 56,600 79,000 49 Miscellaneous 1,636 2,050 2,000 Total Parks $ 385,056 $ 624,894 $ 746,595 001.5.594.76 10 Salaries & Wages $ 486 $ 1,400 $ - 20 Personnel Benefits 204 400 - 62 Buildings & Structures - 16,200 - 63 Other Improvements 73,837 - - 64 Machinery & Equipment - 15,000 - Total Capital Expenditures $ 74,527 $ 33,000 $ - Total Parks $' 459,583 $ 657,894 $ 746,595 576.80 Notes 31 Equipment Replacement, Fertilizer, Cleaning Materials, Mutt Mitts, Repair Supplies, Vandalism Repair Parts, Spray Tank, Equipment Replacement, Topsoil/Seed 41 Janitorial, On -Call Arborist, Waterfront Park Conceptual Plan 47 Electricity, Natural Gas, Water/Sewer, Storm 48 Vehicle & Equipment Repair, Maintenance Tools, Building Repair, Tree Cutting/Spraying, Park Services Maintenance, Van Zee/Givens Tennis Court Resurface/Repair 49 Noxious Weed Control, CDL Licenses, Miscellaneous Page 123 2017-2018 DEPARTMENT OPERATING BUDGET City Street Expenditures 2013-2014 Actual: 2015-2016 Budget 2017-2018 Budget 10 Salaries & Wages $ 837,316 $ 905,337 $ 1,089,960 20 Personnel Benefits 346,134 458,873 534,175 Total Salary & Benefits $ 1,183,449 $ 1,364,210 $ 1,624,135 30 Supplies $ 114,288 $ 148,600 $ 203,200 40 Other Services & Charges 1,033,414 2,668,475 1,411,420 Total Other Expenditures $ 1,147,703 $ 2,817,075 $ 1,614,620 63 Other Improvements $ 151,154 $ 18,870 $ 21,600 Total Capital Expenditures $ 151,154 $ 18,870 $ 21,600 Operating Transfers - Out $ 103,593 $ 138,500 $ 69,587 Total City Street $ 2,585,899 $ 3,329,942 $ 4,338,655 For additional detail, see worksheets for Maintenance, Administration, & Capital Expenditures. 2017-2018 DEPARTMENT BUDGET Salaries 34% Capital 1% $5,000,000 Benefits $4,500,000 16% $4,000,000 $3,500,000 Supplies $3,000,000 6% $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 Services & Charges $- 43% ANNUAL BUDGET COMPARISON 2013-2014 Actual 2015-2016 Budget 2017-2018 Budget Page 124 2017-2018 DEPARTMENT OPERATING BUDGET City Street Road and Street Maintenance Expenditures 2013-2014 Actual 2015-2016 Budget 2017-2018 Budget 002.5.542.30 10 Salaries & Wages $ 174,734 $ 185,051 $ 160,190 20 Personnel Benefits 76,253 88,355 86,050 30 Supplies 21,684 21,000 24,000 40 Other Services & Charges 333,679 1,488,100 437,700 Total Roadway $ 606,351 $ 1,782,506 $ 707,940 002.5.542.50 10 Salaries & Wages $ 2,674 $ 3,560 $ 3,463 20 Personnel Benefits 1,538 2,089 2,199 30 Supplies 1,406 1,000 600 40 Other Services & Charges 49,727 91,000 121,280 Total Structures (Bridges) $ 55,345 $ 97,649 $ 127,542 002.5.542.61 10 Salaries & Wages $ 3,231 $ 10,638 $ 13,740 20 Personnel Benefits 1,755 5,075 7,715 30 Supplies 1,525 15,000 56,000 40 Other Services & Charges 23,755 30,000 30,000 Total Sidewalks $ 30,266 $ 60,713 $ 107,455 002.5.542.62 10 Salaries & Wages $ - $ 1,000 $ 1,429 20 Personnel Benefits - 600 653 30 Supplies - 1,700 - Total Paths & Trails $ - $ 3,300 $ 2,082 542.30 Notes 30 Asphalt, Crushed Rock, Supplies 40 Saw Cutting, Dump Fees, HMA Crack Sealing, Excavator, Tree Removal, Pavement Repair, Vehicle License Fee Projects, Printing 542.50 Notes 30 Grafitti Removal 40 Bridge Program Management, Clean Expansion Joints, Scour Monitioring & Survey, Inventory & 542.61 Notes 30 Concrete, ADA Access Upgrades, Trash Cans 40 Grind Sidewalks, General Maintenance 542.63 Notes 30 Marquee Sidewalk Lights, Miscellaneous Supplies 40 Electricity Page 125 2017-2018 DEPARTMENT OPERATING BUDGET City Street Road and Street Maintenance (Continued) Expenditures 2013-2014 Actual 2015-2016 Budget 2017-2018 Budget 002.5.542.63 10 Salaries & Wages $ 1,733 $ 1,703 $ 766 20 Personnel Benefits 843 929 367 30 Supplies 75 400 400 40 Other Services & Charges 260,536 277,400 278,000 Total Street Lighting $ 263,187 $ 280,432 $ 279,533 002.5.542.64 10 Salaries & Wages $ 98,005 $ 116,777 $ 121,208 20 Personnel Benefits 39,633 54,526 52,456 30 Supplies 32,250 34,000 37,000 40 Other Services & Charges 231,339 312,000 281,000 Total Traffic Contol Devices $ 401,227 $ 517,303 $ 491,664 002.5.542.65 10 Salaries & Wages $ 7,364 $ 10,236 $ 10,114 20 Personnel Benefits 2,832 5,090 4,736 30 Supplies 1,481 4,200 1,000 40 Other Services & Charges 574 21,700 21,200 Total Parking Facilities $ 12,252 $ 41,226 $ 37,050 002.5.542.66 10 Salaries & Wages $ 19,656 $ 23,335 $ 15,584 20 Personnel Benefits 8,279 33,821 5,502 30 Supplies 12,148 33,000 33,000 40 Other Services & Charges 41 - - Total Snow & Ice Control $ 40,124 $ 90,156 $ 54,086 542.64 Notes 30 Barricades, No Parking Posters, Paint & Supplies, Reflective Street Sinage, Cedar/Metal Sign Posts, Two Speed Radar Signs 40 Sign Replacement, Specific Street Signs, Electricity, Buttons, Thermoplastic, Guardrail Repair, WSDOT Contract, Street Striping 542.65 Notes 40 Printing, Grader Rental, Pavement Repair 542.66 Notes 30 Sand, Repair Parts, Brine De-icer, Miscellaneous Page 126 2017-2018 DEPARTMENT OPERATING BUDGET City Street Road and Street Maintenance (Continued) Expenditures 2013-2014 Actual 2015-2016 Budget 2017-2018 Budget 002.5.542.70 10 Salaries & Wages $ 70,164 $ 92,906 $ 87,335 20 Personnel Benefits 34,904 58,740 50,577 30 Supplies 13,601 7,700 12,500 40 Other Services & Charges 27,064 10,000 2,000 Total Roadside $ 145,732 $ 169,346 $ 152,412 002.5.542.80 10 Salaries & Wages $ 17,588 $ 22,348 $ 21,834 20 Personnel Benefits 6,346 12,742 12,136 30 Supplies 898 1,000 200 40 Other Services & Charges 1,336 2,000 2,000 Total City Clean -Up $ 26,167 $ 38,090 $ 36,170 002.5.542.90 10 Salaries & Wages $ 60,151 $ 52,974 $ 34,875 20 Personnel Benefits 25,872 23,356 16,853 30 Supplies 21,854 20,900 31,500 40 Other Services & Charges 5,094 7,420 12,000 Total Admin & Overhead $ 112,971 $ 104,650 $ 95,228 Total Road and Street Maintenance $ 1,69 ,623 $ 3,185,371 $ 2,091,162 542.70 Notes 30 Repair Parts, Noxious Weed Abatement, Small Equipment 40 Noxious Weed Abatement, Dump Fees 542.80 Notes 30 Tarps 40 Advertisements, White Goods, Landfill Costs 542.90 Notes 30 Miscellaneous Tools, Supplies 40 Hazmat-Parts Cleaner, Vehicle Repairs, Fire Extinguisher Inspections Page 127 2017-2018 DEPARTMENT OPERATING BUDGET City Street Road and Street Administration Expenditures ;2013-2014 Actual 2015-2016 Budget 2017-2018 Budget 002.5.543.10 10 Salaries & Wages $ 135,028 $ 121,135 $ 144,468 20 Personnel Benefits 57,710 58,923 65,433 30 Supplies 3 - - 40 Other Services & Charges 5,290 20,500 2,000 Total Road & Street Management $ 198,031 $ 200,558 $ 211,901 002.5.543.30 10 Salaries & Wages $ 188,904 $ 222,979 $ 461,487 20 Personnel Benefits 69,383 95,034 222,589 30 Supplies 1,005 2,700 1,000 40 Other Services & Charges 76,509 378,255 183,840 Total General Services $ 335,801 $ 698,968 $ 868,916 002.5.543.31 10 Salaries & Wages $ 2,426 $ 600 $ - 20 Personnel Benefits 938 500 - 40 Other Services & Charges 3,298 7,000 12,000 Total Training $ 6,662 $ 8,100 $ 12,000 002.5.543.50 10 Salaries & Wages $ 55,004 $ 40,095 $ 13,467 20 Personnel Benefits 19,714 19,093 6,909 30 Supplies 6,359 6,000 6,000 40 Other Services & Charges 15,173 23,100 28,400 Total Road & Street Facilities $ 96,250 $ 88,288 $ 54,776 Total Road and Street Administration $ 995,914 $ 1,147,593 $ 636,744 543.10 Notes 40 Public Records Request (Staff Time) 543.30 Notes 40 Shop Copier, CDL Licenses/Physicals, Municipal Code Codification Fees, Telephone, Annual State Audit, GIS/ESRI Software & Maintenance, Claims for Damages, Legal Expenses, SR 160 Bethel 543.31 Notes 40 Street Training, Travel, Safety Training 543.50 Notes 40 Laundry Service, Electricity, Natural Gas, Utilities, Repairs, Janitorial Services Page 128 2017-2018 DEPARTMENT OPERATING BUDGET City Street Capital Expenditures Expenditures ;2013-2014 Actual 20'15-2016 Budget 2017-2018 Budget 002.5.594.42 10 Salaries & Wages $ 501 $ - $ - 20 Personnel Benefits 99 - - 64 Machinery & Equipment 102,135 18,870 21,600 Total Street Equipment $ 102,735 $ 18,870 $ 21,600 002.5.595.30 10 Salaries & Wages $ 152 $ - $ - 20 Personnel Benefits 32 - - 63 Other Improvements 32,101 - - Total Roadway Construction $ 32,286 $ - $ - 002.5.595.64 63 Other Improvements $ 16,918 $ - $ - 002.5.597.00 00 Operating Transfers Out $ 103,593 $ 138,500 $ 69,587 $ 103,593 $ 138,500 $ 69,587 Total Other Governmental, Expenditures $' 255,532 $ 91,187 $ 157,370 594.42 Notes 64 Mini35 - Sheeps Foot Comapctor, GPS Unit, VUWorks GIS Software Page 129 2017-2018 DEPARTMENT OPERATING BUDGET Capital Expenditure Funds Capital Construction Expenditures 2013-2014 Actual 2015-2016 Budget 2017-2018 Budget, 302.5.594.18 10 Salaries & Wages $ - $ 300 - 20 Personnel Benefits - 200 - 61 Land & Land Improvements 5,200 144,500 - 62 Buildings & Structures - 312,700 - Total Buildings & Structures $ 5,200 $ 457,700 - 302.6.518.30 41 Professional Services $ 100 $ - $ - 302.6.519.20 49 Judgments & Settlements $ 10,091 $ - $ - 302.6.594.76 10 Salaries & Wages $ 5,649 $ - $ - 20 Personnel Benefits 2,492 - - 63 Other Improvements 570,720 1,123,500 6,000 Total Other Improvements $ 578,860 $ 1,123,500 $ 6,000 302.6.594.77 10 Salaries & Wages $ 6,590 $ - $ - 20 Personnel Benefits 2,922 - - 62 Buildings & Structures 82,776 - - 63 McCormick Woods Village Park 311,942 200,000 955,450 Total $ 404,230 $ 200,000 $ 955,450 Total Capital Construction * Previously tracked in Fund 302, Cumulative Reserve for Municipal Facilities. To provide clairty in 2015 REET was moved to Fund 109, Real Estate Excise Tax, and Fund 302 was renamed Capital Construction Page 130 2017-2018 DEPARTMENT OPERATING BUDGET Capital Expenditure Funds Capital Construction Expenditures 2013-2014 Actual 2015-2016 Budget 2017-2018 Budget 302.6.594.78 10 Salaries & Wages $ 89 $ - $ - 20 Personnel Benefits 18 - - 63 Paul Powers Park 39,011 4,000 - Total Other Infrastructure $ 39,118 $ 4,000 $ - 302.6.595.62 63 POB Bay Street Pedestrian Pathway $ 85,657 $ - $ - 302.6.595.72 10 Salaries & Wages $ 8,052 $ - $ - 20 Personnel Benefits 4,031 - - 63 DOC Bay Street Pedestian Pathway 504,569 - - Total $ 516,652 $ - $ - 302.6.597.00* 00 Operating Transfers -Out (REST) $ 604,236 $ 1,650,000 $ - Total Other Financing Uses $ 604,236 $ 1,650,000 $ - 302.9.508.00 30.00* Restricted Fund Balance-REET Ending $ 1,361,938 $ - $ - 50.00 Assigned Fund Balance - 275,000 276,000 $ 1,361,938 $ 275,000 $ 276,000 Total Capital Construction 3,606,083 $ 3,710,200 $ 1,237,450 Page 131 2017-2018 DEPARTMENT OPERATING BUDGET Capital Expenditure Funds Cumulative Reserve for Equipment Replacement Expenditures 2013-2014 Actual 2015-2016 Budget 2017-2018 Budget 303.6.594.00 18.64 Machinery & Equipment $ 29,783 $ - $ - 21.64 Machinery & Equipment -Police 165,626 166,300 - 42.64 Machinery & Equipment -Police - 35,000 - 58.64 Machinery & Equipment - 31,300 - 76.64 Machinery & Equipment - - 25,000 Total Capital Expenditures $ 195,409 $ 232,600 $ 25,000 303.9.508.50 52.00 Assigned Fund Balance -Police $ 89,889.77 $ 86,158 $ 79,690 53.00 Assigned Fund Balance -Street $ 96,242.31 $ 107,836 $ 108,738 54.00 Assigned Fund Balance -Miscellaneous $ 106,167.64 $ 191,720 $ 263,259 55.00 Assigned Fund Balance -Computers $ 12,561 $ 12,636 $ - Total Cumulative Reserve for Equip Replacement $ 500,269 $ 630,950 $ 476,687 594.76 Notes 64 Public Works Vehicle Page 132 2017-2018DEPARTMENT OPERATING BUDGET Capital Expenditure Funds Expenditures Actual Budget Budget 304.5.595.10 10 Sa|ahao&VVagoa $ 1.140 $ ' $ ' 20 Personnel Benefits 680 - - 63 Other Improvements 163.020 7.588 ' Total Tremont StWidening Engineering $ 184,859 $ 7,600 $ - 304.5.595.11 10 Sa|ahes&VVageo $ 2.048 $ - $ - 20 Personnel Benefits 780 ' ' 03 Other Improvements 12.548 - - Total Cedar Heights Engineering $ 15,373 $ - $ - 304.5.595.12 63 Other Improvements $ - $ 80,000 $ 530,000 Total Bay Street Pedestrian Path Engineering - 60,000 530,000 384.5.595.14 63 Other Improvements $ - $ 150'000 $ 50'000 Total Port Orchard Old Clifton - 150.000 60.000 384.5.595.20 10 Salaries &Wages $ 101 $ - $ - 20 Personnel Benefits 62 ' ' 61 ROW -Land 67.230 100 - 03 R[>VV'{}the/|mprovemanta ' 796.402 9,590 Total Tremont StWidening FlOVV $ 67,491 $ 796,502 $ 9,596 2017-2018 DEPARTMENT OPERATING BUDGET Capital Expenditure Funds Street Capital Projects Expenditures 2013-2014 Actual 2015-2016 Budget 2017-2018 Budget 304.5.595.21 10 Salaries & Wages $ 1,257 $ - $ - 20 Personnel Benefits 575 - - 61 ROW -Land 20,808 4,587,104 1,038,379 Total Bay Street Pedestrian Path ROW $ 22,640 $ 4,587,104 $ 1,038,379 304.5.595.62 10 Salaries & Wages $ - $ 5,400 $ - 20 Personnel Benefits - 2,600 - 63 Other Improvements - 403,950 - Total Bay St Ped Path Segment 4 $ - $ 411,950 $ - 304.5.595.71 10 Salaries & Wages $ 7,569 $ - $ - 20 Personnel Benefits 2,185 - - 63 Other Improvements 161,418 - - Total Cedar Heights Sidewalk Construction $ 171,171 $ - $ - 304.9.597.00.00 00 Operating Transfers Out $ - $ 300,000 $ - 304.9.508.30 00 Est Restricted Fund Balance -Ending $ 735,056 $ 362,183 $ 1,387,823 Total Street Capital Projects $ 1,176,590 $ 6,675,239 $ 3,015,798 595.21 Notes 61 Bay Street Pedestiran Pathway RW Segment #3 Construction & CACM Page 134 WATER SEWER UTILITY The City of Port Orchard provides water and sewer services for its residents. Customers are billed bi- monthly as prescribed by Ordinance. Water fees are calculated based on how many units, meter size, and consumption. Sewer is billed at a flat rate based on the type of service, number of units and fixture fees. Water usage typically increases during the warm summer months returning to lower levels for the other months of the year. Port Orchard is very proactive with water conservation, offering programs, literature, and education to help our citizens conserve water. The water sewer utility's operation and maintenance is funded, by and large, from payments for water and sewer services. Water and sewer mains, wells, pump stations, and other infrastructure require constant maintenance and repair. The City strives to provide the best services and rates to its customers. Water charges are calculated based on water used per Equivalent Residential Unit (ERU). An ERU for residential connections is one single-family dwelling unit. For non residential connections an ERU is 180 gallons per day. Commercial ERU's have remained steady over a ten year period, however residential ERU's are steadily increasing due to the demand from new homes constructed within our City limits. Because of aging infrastructure and the continuing increase in demand to the utility, in spring of 2014 the City hired a consultant to prepare an analysis of the water sewer infrastructure, project future needs and how to fund them. After many meetings, fact gathering and public hearings, the City enacted ordinance #020-15 effective January 1, 2016, which provides a rate increase to offset the rising costs of operating the utility. The ordinance increases water and sewer rates over a five year period. The multiyear approach was adopted to lessen the impact of the increase on the Utility's customers. New rates offer incentives to conserve water. The less water used the lower the rate. Sewer is charged at a flat rate for single family residences. Commercial properties are charged dependent upon the type of business and number of fixtures. The City must maintain fund balance with sufficient revenue levels for operations and maintenance throughout the year. Unexpected emergencies which might arise and future infrastructure upgrades are also factored into the fund balance equation. The City's goal is to provide safe, reliable, and efficient water and sewer service for its residents. As our infrastructure ages and demand for service continues to grow, we must look ahead and plan for replacing and improving the system in order to keep it at peak performance. To that effect the City has reserve accounts where funds are saved for necessary infrastructure improvements. The reserve fund receives its revenue primarily from developer fees. Funds from the rate increase, which begins in 2016, will also be used for infrastructure replacement. Page 135 2017-2018 DEPARTMENT OPERATING BUDGET Water Sewer Expenditures 2013-2014 Actual 2015-2016 Budget 2017-2018 Budget 10 Salaries & Wages $ 1,720,002 $ 1,844,592 $ 2,089,183 20 Personnel Benefits 682,717 898,251 1,105,212 Total Salary & Benefits $ 2,402,720 $ 2,742,843 $ 3,194,395 30 Supplies $ 270,628 $ 450,650 $ 558,300 32 Fuel Consumed 39,242 41,000 - 33 Water Purchased for Resale 53,496 287,000 264,000 40 Other Services & Charges 1,725,511 2,386,081 2,242,630 41 Professional Services - Legal 14,225 10,000 30,000 46 Insurance 313,146 517,500 575,600 50 Intergovernmental Services 2,746,980 2,960,129 3,180,960 53 Utility Tax State 240,934 265,000 335,800 54 Utility Tax City 463,346 501,900 648,600 71 Long Term Debt - 103,950 112,050 77 Other Notes - 15,000 - 80 Prior Year Adjustment 5,410 - - 83 Interest On Long Term Debt 24,889 23,924 10,600 84 Amortization of Debt Premium/Refund 59,285 - - Total Other Expenditures $ 5,957,090 $ 7,562,134 $ 7,958,540 63 Other Improvements $ - $ 3,504,300 $ 7,655,000 64 Machinery & Equipment - 113,209 205,200 Total Capital Expenditures - $ 3,617,509 $ 7,860,200 00 Operating Transfers $ 236,221 $ 3,080,000 $ 4,000,000 Total Water Sewer $ 8,596,030 $ 17,002,486 $ 23,013,135 For additional detail, see worksheet for Water Sewer. 2017-2018 DEPARTMENT BUDGET Capital 44% ANNUAL BUDGET COMPARISON $25,000,000 $20,000,000 Salaries 12% $15,000,000 Benefits 6% $10,000,000 Supplies 3% $5,000,000 ervices & 2013-2014 2015-2016 2017-2018 Charges Actual Budget Budget 35% Page 136 2017-2018 DEPARTMENT OPERATING BUDGET Water Sewer Water Utilities Expenditures 2013-2014 Actual 2015-2016 Budget 2017-2018 Budget 401.5.534.10 10 Salaries & Wages $ 61,099 $ 90,637 $ 126,410 20 Personnel Benefits 24,419 51,083 82,930 30 Supplies 144 4,200 400 40 Other Services & Charges 8,053 33,966 18,940 41 Professional Services - Legal 4,622 - 20,000 46 Property Insurance - WA 83,375 114,960 188,900 53 Utility Tax State 165,918 190,000 247,000 54 Utility Tax City 153,387 175,800 224,500 Total General Administration $ 501,016 $ 660,646 $ 909,080 401.5.534.11 10 Salaries & Wages $ 167,971 $ 143,232 $ 208,236 20 Personnel Benefits 68,104 65,420 96,255 46 Liability Insurance - WA 82,035 155,540 117,400 Total General Administration Executive $ 318,109 $ 364,192 $ 421,891 401.5.534.12 10 Salaries & Wages $ 222,953 $ 231,339 $ 258,130 20 Personnel Benefits 80,890 100,105 128,208 40 Other Services & Charges 539 600 - Total General Administration Clerical $ 304,382 $ 332,044 $ 386,338 401.5.534.20 40 Other Services & Charges $ 34,186 $ 117,575 $ 89,925 Total Other Administration $ 34,186 $ 117,575 $ 89,925 401.5.534.40 40 Other Services & Charges - Training WA $ - $ 12,000 $ 24,000 Total Training $ - $ 12,000 $ 24,000 534.10 Notes 30 Office Copier Supplies, Phones 40 State Audit, CDL Licenses & Physicals, Legal, Code Codification, Copier Maintenance & Printing, Public Records Request, Phone Data 534.20 Notes 40 Emergency Generator Rental, Water System Updates, Well#3&4 Action Plan, Dues, GiS/ESR, Maintenance, Well 9 Support Page 137 2017-2018 DEPARTMENT OPERATING BUDGET Water Sewer Water Utilities (Continued) Expenditures 2013-2014 Actual 2015-2016 Budget 2017-2018 Budget 401.5.534.50 10 Salaries & Wages $ 6,680 $ 9,334 $ 4,337 20 Personnel Benefits 2,738 5,184 2,638 30 Supplies 5,562 7,500 6,000 40 Other Services & Charges 4,860 16,050 23,650 Total Structures Maintenance $ 19,840 $ 38,068 $ 36,625 401.5.534.51 10 Salaries & Wages $ 7,114 $ 14,929 $ 15,725 20 Personnel Benefits 2,745 6,153 6,764 30 Supplies 12,961 12,800 19,000 40 Other Services & Charges 2,839 5,800 3,400 Total Transportation Equipment $ 25,658 $ 39,682 $ 44,889 401.5.534.52 10 Salaries & Wages $ 93,255 $ 110,855 $ 104,222 20 Personnel Benefits 44,219 54,717 53,518 30 Supplies 38,678 42,000 46,000 40 Other Services & Charges 37,051 67,000 46,000 Total Water Treatment $ 213,203 $ 274,572 $ 249,740 401.5.534.53 10 Salaries & Wages $ 2,653 $ 3,778 $ 2,799 20 Personnel Benefits 1,569 2,415 1,706 30 Supplies 506 10,200 1,000 40 Other Services & Charges 617 8,000 13,000 Total Wells Maintenance $ 5,345 $ 24,393 $ 18,505 534.50 Notes 30 Crushed Rock, Shop Materials, Miscellaneous Supplies, Shop Server 40 New Carpet, Janitorial Services, Miscellaneous Repairs 534.51 Notes 30 Auto Parts, Fuel 40 Claims for Damages, Equipment Rental, Miscellaneous Equipment 534.52 Notes 30 Chlorine, Floride, Potassium (Well #9) 40 Chlorinator Repairs, Travel, Water Testing, Miscellaneous Repairs 534.53 Notes 40 Well Testing (VOC, IOC, Chlorine Residual), Miscellaneous Repairs, Pump House Repairs/Upgrades Page 138 2O17-2O18DEPARTMENT OPERATING BUDGET Water Sewer Expenditures Actual Budget Budget 401.5.53454 10 Salaries &Wages $ 70.228 $ 98.638 $ 84.601 20 Personnel Benefits 27.722 51.611 46.470 30 Supplies 0.404 12.700 40.000 40 Other Services &Charges 25.530 33.000 20.000 Total Supply Main Maintenance $ 129.944 $ 185.949 $ 191.131 401.5.534.55 10 Salaries &Wages $ 30.874 $ 31.870 $ 40.437 20 Personnel Benefits 13.108 18.070 18.050 30 Supplies 0.527 11.700 42.000 40 Other Services &Charges 25.452 17.500 17.500 Total Services Maintenance $ 76.021 $ 79.140 $ 118.893 401.5.534.58 10 Salaries &Wages $ 107.488 $ 157.034 $ 135.651 20 Personnel Benefits 45.051 82.075 72.848 30 Supplies 20.054 38.300 38.000 40 Other Services &Charges 194.751 222.900 170.000 Total Pumping Expenses $ 368.244 $ 501.209 $ 414.498 534.54Noteo 30 Pipe & Water Main Parts 40 Asphalt Sawing, Leak Detection, Underground Location F000, Miscellaneous Repairs 534.55Noteo 30 Cross Connection Control Program, Water Service Parts 40 Asphalt Sawing, DOH Permit, Travel, Miscellaneous Repairs, Cross -Connection Testing 534.56Nc6es 30 Telemetry Parts, Miscellaneous Supplies 40 Boctrioity, Pump Repairs, To|emotrySCADA 2017-2018 DEPARTMENT OPERATING BUDGET Water Sewer Water Utilities (Continued) Expenditures 2013-2014 Actual 2015-2016 Budget 2017-2018 Budget 401.5.534.57 10 Salaries & Wages $ 4,244 $ 10,775 $ 4,095 20 Personnel Benefits 2,521 5,129 2,534 30 Supplies 334 5,600 4,100 40 Other Services & Charges 16,267 57,000 37,000 Total Distribution Reservoirs & Maintenance $ 23,366 $ 78,504 $ 47,729 401.5.534.58 10 Salaries & Wages $ 10,939 $ 13,605 $ 16,541 20 Personnel Benefits 5,423 7,436 11,576 30 Supplies 60,174 100,000 45,000 40 Other Services & Charges (5,446) 2,000 3,000 Total Meters Maintenance $ 71,090 $ 123,041 $ 76,117 401.5.534.59 10 Salaries & Wages $ 2,987 $ 5,208 $ 2,001 20 Personnel Benefits 1,136 2,951 1,282 30 Supplies 4,642 1,000 10,000 40 Other Services & Charges - 31,450 70,650 Total Hydrants Maintenance $ 8,764 $ 40,609 $ 83,933 534.57 Notes 40 Training, Travel, Reservoir Cleaning/Painting, Miscellaneous Repairs 534.58 Notes 30 Touch Read Meter Conversion Parts 40 Asphalt Sawing, Miscellaneous Repairs 534.59 Notes 30 Hydrant Repairs & Parts 40 Asphalt Sawing, Miscellaneous Repairs & Replacement Page 140 2017-2018 DEPARTMENT OPERATING BUDGET Water Sewer Water Utilities (Continued) Expenditures 2013-2014 Actual 2015-2016 Budget 2017-2018 Budget 401.5.534.72 10 Salaries & Wages $ 20,975 $ 29,545 $ 26,674 20 Personnel Benefits 14,169 19,407 18,783 30 Supplies 130 150 300 40 Other Services & Charges 6,246 7,000 8,000 Total Customer Service Meter Read $ 41,520 $ 56,102 $ 53,757 401.5.534.73 10 Salaries & Wages $ 129,401 $ 119,365 $ 111,450 20 Personnel Benefits 48,229 59,815 61,543 30 Supplies 2,541 3,000 3,000 40 Other Services & Charges 29,890 32,900 32,000 Total Customer Service Record & Collection $ 210,061 $ 215,080 $ 207,993 401.5.534.77 30 Supplies-Cust Sery & Info Exp $ - $ 100 $ - 40 Other Services & Charges 500 1,100 600 Total Customer Service & Information $ 500 $ 1,200 $ 600 401.5.534.80 30 Supplies $ 3,949 $ 7,300 $ 8,000 32 Fuel Consumed 19,621 21,000 - 33 Water Purchased for Resale 53,496 287,000 264,000 40 Other Services & Charges 29,524 34,100 52,650 Total General Operations $ 106,589 $ 349,400 $ 324,650 401.5.534.90 40 Other Services & Charges $ 15,866 $ - $ - Total Other Operating Expense $ 15,866 $ - $ - Total Water Utilities $ 2,473,705 $ 3,503,406 $ 3,700,295 534.72 Notes 40 Meters -Touch Read Conversion, Sensus Software Support 534.73 Notes 30 Consumer Confidence Report, Office Supplies 40 Communication, Mailing Service, Billing Software Maintenance, Postage, Credit Card Program 534.80 Notes 33 Bremerton Water, West Sound Utility District 40 Beeper, Blackjack Creek Mitigation, Laundry, Operater Certification, Phones, Utilities Page 141 2017-2018 DEPARTMENT OPERATING BUDGET Water Sewer Sewer Utilities Expenditures 2013-2014 Actual 2015-2016 Budget 2017-2018 Budget 401.5.535.10 10 Salaries & Wages $ 64,650 $ 71,358 $ 124,580 20 Personnel Benefits 24,735 40,712 79,927 30 Supplies 144 600 400 40 Other Services & Charges 19,401 24,445 18,800 41 Professional Services - Legal 9,602 10,000 10,000 46 Property Insurance - SW 65,701 105,200 166,000 53 Utility Tax State 75,016 75,000 88,800 54 Utility Tax City 309,960 326,100 424,100 Total General Administration $ 569,210 $ 653,415 $ 912,607 401.5.535.11 10 Salaries & Wages $ 170,820 $ 143,144 $ 207,746 20 Personnel Benefits 67,759 65,420 96,078 46 Liability Insurance - SW 82,035 141,800 103,300 Total General Administration Executive $ 320,614 $ 350,364 $ 407,124 401.5.535.12 10 Salaries & Wages $ 227,529 $ 231,339 $ 258,128 20 Personnel Benefits 80,347 100,105 128,207 40 Other Services & Charges 539 600 - Total General Administration Clerical $ 308,415 $ 332,044 $ 386,335 401.5.535.20 40 Other Services & Charges $ 22,957 $ 147,625 $ 125 Total Training $ 22,957 $ 147,625 $ 125 401.5.535.40 30 Supplies - Training SW $ - $ 3,000 $ - 40 Other Services & Charges - Training SW - 3,000 6,000 Total Other Administration $ - $ 6,000 $ 6,000 401.5.535.50 10 Salaries & Wages $ 6,128 $ 8,769 $ 5,813 20 Personnel Benefits 2,336 4,802 3,481 30 Supplies 5,244 7,900 6,400 40 Other Services & Charges 4,902 21,050 33,650 Total Structures Maintenance $ 18,610 $ 42,521 $ 49,344 535.10 Notes 40 State Audit, CDL Licenses & Physicals, Code Codification, Copier Maintenance, Printing 535.20 Notes 40 Required Safety Training, Sanitary Sewer System Plan Update 535.50 Notes 30 Crushed Rock, Materials, Miscellaneous Supplies 40 Carpet Cleaning, Janitorial, Miscellaneous Repairs Page 142 2017-2018 DEPARTMENT OPERATING BUDGET Water Sewer Sewer Utilities (Continued) Expenditures 2013-2014 Actual 2015-2016 Budget 2017-2018 Budget 401.5.535.51 10 Salaries & Wages $ 6,995 $ 13,385 $ 15,725 20 Personnel Benefits 2,690 5,686 6,764 30 Supplies 13,029 13,300 14,000 40 Other Services & Charges 2,839 5,600 3,000 Total Transportation Equipment $ 25,552 $ 37,971 $ 39,489 401.5.535.52 10 Salaries & Wages $ 1,606 $ 1,110 $ - 20 Personnel Benefits 327 560 - 30 Supplies 18 100 200 40 Other Services & Charges 742 1,500 1,000 50 Intergovernmental Services 2,746,980 2,960,129 3,180,960 Total Sewer Treatment $ 2,749,673 $ 2,963,399 $ 3,182,160 401.5.535.54 10 Salaries & Wages $ 38,519 $ 55,209 $ 68,894 20 Personnel Benefits 17,890 27,007 38,748 30 Supplies 9,931 7,000 62,000 40 Other Services & Charges 264,117 355,100 405,000 Total Supply Main Maintenance $ 330,457 $ 444,316 $ 574,642 535.51 Notes 30 Auto Parts, Fuel 40 Claims for Damages, Equipment Rental, Miscellaneous Equipment 535.52 Notes 40 Travel, Miscellaneous Repairs 50 South Kitsap Water Reclamation Facility 535.54 Notes 30 Pipe & Sewer Main Parts 40 Asphalt Sawing, Sanitary Sewer Main Maintenance, Underground Location Fees, Miscellaneous Page 143 2017-2O18DEPARTMENT OPERATING BUDGET Water Sewer Expenditures Actual Budget Budget 401.5.535.55 10 Salaries &Wages $ 43.542 $ 34.061 $ 32.009 20 Personnel Benefits 20.288 19.718 18.317 30 Supplies 0.797 7.400 0.500 40 Other Services &Charges 49.920 57.000 86.000 Total Services Maintenance $ 120.546 $ 118.179 $ 145.826 401.5.535.58 10 Salaries &Wages $ 138.718 $ 143.405 $ 170.560 20 Personnel Benefits 59.534 74.834 102.908 30 Supplies 00.402 144.000 194.000 40 Other Services &Charges 871.020 1.003.100 968.000 Total Pumping Expenses $ 1.138.581 $ 1.388.239 $ 1.441.564 401.5.535.73 10 Salaries &Wages $ 82.835 $ 84.888 $ 58.353 20 Personnel Benefits 23.800 24.238 24.081 30 Supplies 2.541 3.000 3.000 40 Other Services &Charges 31.383 34.000 34.000 Total CustServ'Record&Collection $ 140.368 $ 128.804 $ 120.034 535.55Note 30 Sewer Parts, Sewer Service Pumps &Parts 40 Asphalt Sawing, Calibrate Sewer Meter, McCormick STEP System Service/Tank Pumping, Travel, Miscellaneous Repairs 535.56Notes 30 Pump Station Odor Control Supp|ioe, Pump Replacement, Telemetry Parto, 40 Bocthoi1Y, Telemetry Upgmdoa, Pump Ropairo, STEP Convorxion, Travo|, Wet Well Pumping 535J3Notes 40 Communioodon, Mailing Sorvioo, Software Maintononoo, Postage, Credit Card Program 2017-2018 DEPARTMENT OPERATING BUDGET Water Sewer Sewer Utilities (Continued) Expenditures 2013-2014 Actual 2015-2016 Budget 2017-2018 Budget 401.5.535.80 30 Supplies $ 3,857 $ 6,900 $ 8,000 32 Fuel Consumed 19,621 20,000 - 40 Other Services & Charges 27,591 32,220 56,740 Total General Operations $ 51,069 $ 59,120 $ 64,740 401.5.535.90 40 Other Services & Charges $ 2,470 $ - $ - Total Miscellaneous Expense $ 2,470 $ - $ - Total Sewer Utilities $ 5,796,521 $ 6,647,997 $ 7,329,990 535.80 Notes 40 Beeper, Laundry, Operator Certification, Phones, Utilities 2015 DEPARTMENT OPERATING BUDGET Water Sewer Correction Expenditures 2013-2014 Actual 2015-2016 Budget 2017-2018 Budget 401.5.588.80 00 Prior Year Correction Total $ 5,410 $ - $ - 5,410 - - TOTAL $ 5,410 $ - $ - Page 145 2017-2018 DEPARTMENT OPERATING BUDGET Water Sewer Expenditures Actual Budget Budget 401.6.691.00 34.71 Long Term Debt -Water $ - $ 51.875 $ 56.025 34.77 Other Notes - 15.000 - 35.71 Long Term Debt -Sewer - 51.875 56.025 Total Redemption ofLong Term Debt $ ' $ 118,850 $ 113,850 401.5.582.00 34.83 Interest on LT Debt -Water $ 12.755 $ 14.812 $ 5.300 34.84 Amortization of Debt Premium/Refund 59.642 - - 35.83 Interest on LT Debt -Sewer 12.135 8.012 5.300 35.84 Amortization ofDebt Premium/Refund (358) - - Total Interest onLong Term Debt $ 84,174 $ 23,924 $ 10,600 401.5.594.34 10 Sa|ariea-VVaterCapita| Projects $ - $ 8.000 $ - 20 Benefito-VVaterCapita|Pnojecta - 2.700 - 63 Other Improvements - 3.504.300 7.655.000 64 Machinery &Equipment - 31.605 46.800 Total Capital Expenditures Water $ - $ 3,546.606 $ 7,701,600 401.5.594.35 64 Machinery &Equipment - 81.804 158.800 Total Capital Expenditures Sewer $ - $ 81,604 $ 158,600 401.5.597.80 UU Operating Transfers Out $ 236.221 $ 3.080.000 $ 4.000.000 Total |ntarfundTrmnsfmrs $ 236,221 $ 3,080,088 $ 4,000,000 694.34Note» 2017-2018 EXPENDITURE BUDGET Proprietary Fund Water Sewer Equipment Replacement Expenditures 2013-2014 Actual 2015-2016 Budget 2017-2018 Budget 402.9.508.80 00 Ending Unreserved Fund Balance $ 311,821 $ 314,740 $ 318,700 Total Water Sewer Equipment Replacement $ 311,821 $ 314,740 $ 318,700 2017-2018 EXPENDITURE BUDGET Proprietary Fund Cumulative Reserve for Water Sewer Expenditures 2013-2014 Actual 2015-2016 Budget 2017-2018 Budget 403.5.597.00 00 Operating Transfers -Out $ 682,368 $ 3,490,000 $ 5,450,000 Total Other Financing Uses 403.9.508.80 00 Ending Unreserved Fund Balance $ 682,368 $ 4,129,154 $ 3,490,000 $ 4,092,400 $ 5,450,000 $ 3,740,000 Total Cumulative Reserve for Water Sewer $ 4,811,522 $ 7,582,400 $ 9,190,000 597.00 Notes 00 Final Design & permitting of Well No. 10 Page 147 STORM DRAINAGE UTILITY The City established the Storm Drainage Utility in 2009 (Ordinance #036-08). Federal Clean Water Act regulations required the City of Port Orchard to have a Storm Management Program to protect the public health, safety, and welfare by minimizing uncontrolled surface erosion, and water pollution while enhancing water quality and environmental habitat. The Storm Drainage Utility receives the majority of its funding from user fees. Fees collected from customers fund operations and maintenance of storm drains, ponds, culverts, and street sweeping. The City of Port Orchard bills its residents for storm drainage fees on the same bi-monthly schedule as the water sewer billings. Single-family residences, duplexes, and triplexes are billed the minimum storm drainage rate for each residential unit. Commercial and other developed properties are calculated based on the amount of impervious ground cover on each property. The number of accounts continues to grow as new areas are developed or annexed into the City. Rates charged for storm drainage services need to be adequate to provide for system operations and maintenance, administration, engineering and legal expenses, and to fund infrastructure replacement, reserve accounts and system improvement projects. The City conducted a Storm Water GAP Analysis study which reviewed the Utilities infrastructure and operations. From the GAP Analysis results, the City developed a plan for operations and maintenance which includes necessary infrastructure and equipment repair or replacement. To provide adequate funding for the proper operation and maintenance of the utility, a rate increase was approved in 2015. This allowed the utility to hire additional staff to meet the NDPES requirements and also to begin building a capital improvement program to repair or replace the aging infrastructure. The Storm Drainage Utility's fund balance allows the utility to continue to maintain a positive cash flow for operations. Revenue inflows fluctuate throughout the year and it is important to have sufficient cash on hand to allow operations and maintenance to continue unhindered. Fund balance also provides for emergency repairs that may be required during the year. Equipment is maintained regularly and utilized to the full extent of its life. All equipment, however, eventually becomes fatigued and repair costs can become a drain on the Utilities cash flow. The equipment replacement fund helps to replace an aging piece of equipment or to fund an emergency purchase should a piece of equipment experience a catastrophic failure. In 2015 the Storm Drainage Capital Facilities Fund was created to which dollars will be added to finance or subsidize a grant match for large projects. Reserves allow this type of expenditure without impacting the operations of the utility. Page 148 2017-2018 DEPARTMENT OPERATING BUDGET Storm Drainage Expenditures 2013-2014 Actual 2015-2016 Budget 2017-2018 Budget 10 Salaries & Wages $ 570,356 $ 953,957 $ 846,451 20 Personnel Benefits 203,753 495,212 403,427 Total Salary & Benefits $ 774,109 $ 1,449,169 $ 1,249,878 30 Supplies $ 47,398 $ 148,425 $ 97,800 40 Other Services & Charges 646,194 597,650 535,893 46 Liability Insurance - 2,650 5,300 53 Utility Tax - State - 41,300 59,000 54 Utility Tax - City - 79,200 164,500 Total Other Expenditures $ 693,592 $ 869,225 $ 862,493 63 Other Improvements $ - $ 1,015,000 $ - 64 Machinery & Equipment - 299,900 41,600 Total Capital Expenditures $ - $ 1,314,900 $ 41,600 00 Loan Repayment Expenditures $ - $ - $ 24,876 00 Operating Transfers $ 51,062 $ 793,850 $ 315,000 Total Storm Drainage $ 1,518,763 $ 4,427,144 $ 2,493,847 For additional detail, see worksheet for Storm Drainage and Capital Expenditures. 2016 DEPARTMENT BUDGET Capital 2% Supplies 5% ANNUAL BUDGET $5,000,000 $4,500,000 $4,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $- 2014 COMPARISON 2015 2016 Page 149 2017-2018 DEPARTMENT OPERATING BUDGET Storm Drainage Storm Drainage Expenditures 2013-2014 Actual 2015-2016 Budget 2017-2018 Budget 421.5.531.00 10 Salaries & Wages $ 345,886 $ 250,660 $ 53,981 20 Personnel Benefits 110,213 119,063 34,012 30 Supplies 10,478 50,925 28,800 40 Other Services & Charges 235,951 307,932 216,300 53 Utility Tax - State - Storm Drainage - 41,300 59,000 54 Utility Tax - City - Storm Drainage - 79,200 164,500 Total Storm Drainage Utility $ 702,527 $ 849,080 $ 556,593 421.5.531.10 10 Salaries & Wages $ - $ 295,658 $ 446,440 20 Personnel Benefits - 159,857 200,138 30 Supplies - 17,300 22,000 40 Other Services & Charges - 21,180 43,613 46 Liability Insurance - 1,050 3,500 Total Storm Drain General Administration $ - $ 495,045 $ 715,691 421.5.531.11 46 Liability Insurance - 1,600 1,800 Total Storm Drain General Administration $ - $ 1,600 $ 1,800 421.5.531.51 10 Salaries & Wages $ - $ 5,932 $ 12,307 20 Personnel Benefits - 2,589 5,293 30 Supplies - 21,500 35,000 40 Other Services & Charges - 5,501 6,000 Total Storm Drain Vehicles $ - $ 35,522 $ 58,600 421.5.531.70 10 Salaries & Wages $ - $ 55,630 $ 110,529 20 Personnel Benefits - 18,921 41,874 40 Other Services & Charges - 6,600 9,200 Total Storm Drainage Customer Service $ - $ 81,151 $ 161,603 531.00 Notes 40 Aerial Mapping, State Audit, Insurance, CDL Physical License, Phone, Claims, Utilities Tax, Copier Lease & Maintenance, Credit Card Program, Utilities, Municipal Code Codificatoin Fees, Pond Maintenance, Postage, Software Maintenance, Stormwater Permits, Training Registration 542.40 Notes 30 Concrete, Fuel, Office Supplies, Pipe, Vehicle Supplies 40 Catch Basin Cleaning, Decant Station Sewer/Permit Fees, Ditch Cleaning, DOE Studies, Equipment Rentals/Miscellaneous, Pond Maintenance, Signs, Vacuum Truck Repairs, Utilities 542.67 Notes 30 Brooms, Repair Parts, Fuel 40 Water Service for Sweeper Pad, Sweeper Repair & Maintenance, CDL License/Physical Page 150 2017-2018 DEPARTMENT OPERATING BUDGET Storm Drainage Storm Drainage Expenditures 2013-2014 Actual 2015-2016 Budget 2017-2018 Budget 421.5.542.40 10 Salaries & Wages $ 169,197 $ 289,319 $ 140,818 20 Personnel Benefits 69,500 170,018 82,803 30 Supplies 15,640 33,200 12,000 40 Other Services & Charges 331,423 187,837 249,680 Total Storm Drainage Maintenance $ 585,760 $ 680,374 $ 485,301 421.5.542.41 10 Salaries & Wages IDDE Grant $ 58 $ - $ - 20 Personnel Benefits IDDE Grant 59 - - 40 Other Services & Charges 44,972 - - Total IDDE Grant $ 45,089 $ - $ - 421.5.542.42 10 Salaries & Wages $ 1,065 $ - $ - 20 Personnel Benefits 232 - - 40 Other Services & Charges 28,025 - - Total DOE Grant $ 29,323 $ - $ - 421.5.542.67 10 Salaries & Wages $ 54,150 $ 56,758 $ 82,376 20 Personnel Benefits 23,750 24,764 39,307 30 Supplies 21,279 25,500 - 40 Other Services & Charges 5,824 68,600 11,100 Total Street Sweeping $ 105,003 $ 175,622 $ 132,783 Total Storm Drainage 1,422,613 '$ 2,318,394 $ 2,112,371 531.00 Notes 40 Aerial Mapping, State Audit, Insurance, CDL Physical License, Phone, Claims, Utilities Tax, Copier Lease & Maintenance, Credit Card Program, Utilities, Municipal Code Codificatoin Fees, Pond 542.40 Notes 30 Concrete, Fuel, Office Supplies, Pipe, Vehicle Supplies 40 Catch Basin Cleaning, Decant Station Sewer/Permit Fees, Ditch Cleaning, DOE Studies, Equipment Rentals/Miscellaneous, Pond Maintenance, Signs, Vacuum Truck Repairs, Utilities 542.67 Notes 30 Brooms, Repair Parts, Fuel 40 Water Service for Sweeper Pad, Sweeper Repair & Maintenance, CDL License/Physical Page 151 2017-2018 DEPARTMENT OPERATING BUDGET Storm Drainage Loan Repayment Expenditures 2013-2014 Actual 2015-2016 Budget 2017-2018 Budget 421.5.581.20 00 Loan Repayment Issued $ - $ - $ 24,876 Total Drainage Construction $ - $ - $ 24,876 421.5.594.00 40.64 Machinery & Equipment - 280,000 - 42.64 Machinery & Equipment - 19,900 41,600 Total Capital Expenditures $ - $ 299,900 $ 41,600 Total Loan Repayment Expenditures $ - $ 299,900 $ 41,600 Capital Expenditures Expenditures 2013-2014 Actual 2015-2016 Budget 2017-2018 Budget 421.5.594.00 40.63 Other Improvements $ - $ 1,015,000 $ - Total Capital Expenditures $ - $ 1,015,000 $ - 421.5.597.00 00 Operating Transfers -Out $ 51,062 $ 793,850 $ 315,000 Total Other Financing Uses $ 51,062 $ 793,850 $ 315,000 Total Capital Expenditures $ 51,062 $ 1,808,850 $ 315,000 594.42 Notes 63 Culvert Repairs, Ruby Creek Culvert Design 64 Sweeper, Flail Mower Attachment Page 152 2017-2018 DEPARTMENT OPERATING BUDGET Proprietary Fund Storm Drainage Equipment Replacement Expenditures 2013-2014 Actual 2015-2016 Budget 2017-2018 Budget 422.5.597.00 00 Operating Transfers -Out $ - $ 250,000 $ - Total Other Financing Uses 422.9.508.80 00 Ending Unreserved Fund Balance $ - $ 300,757 $ 250,000 $ 150,610 $ - $ 215,720 Total Storm Drain. Equip. Replacement $ 300,757 $ 400,610 $ 215,720 Proprietary Fund Storm Drainage Capital Facilities Expenditures 2013-2014 Actual 2015-2016 Budget 2017-2018 Budget 423.9.508.80 00 Est. End Unreserved Fund Balance Total Other Financing Uses $ - $ 694,095 $ 547,440 $ - $ 694,095 $ 547,440 Total Storm Drain. Equip. Expenditures $ - $ 694,095 $ 547,440 *Fund was established in 2015 Page 153 Page 154 2017-2018 EXPENDITURE BUDGET Criminal Justice Criminal Justice Expenditures 2013-2014 Actual 2015-2016 Budget 2017-2018 Budget, 103.3.521.10 31 Supplies $ 13,406 $ 42,294 $ 38,000 48 Repairs & Maintenance - 3,000 5,000 51 Intergovernmental Services 39,892 119,025 - Total Administration $ 53,298 $ 164,319 $ 43,000 103.3.521.22 10 Salaries & Wages $ 166,767 $ 175,370 $ 194,325 20 Personnel Benefits 40,249 66,885 87,097 Total Operations $ 207,016 $ 242,255 $ 281,422 103.3.562.00 41 Professional Services $ - $ 1,000 $ 1,000 Total Public Health $ - $ 1,000 $ 1,000 103.3.566.00 51 Intergovernmental Professional Services $ - $ 2,000 $ - Total Substance Abuse $ - $ 2,000 $ - 103.3.594.21 64 Machinery & Equipment $ 68,738 $ 135,150 $ 288,405 Total Capital Expenditures $ 68,738 $ 135,150 $ 288,405 103.9.508.30 00 Estimated Restricted Fund Balance -Ending $ 354,091 $ 351,109 $ 441,573 Total Criminal Justice $ 683,143 $, 895,833 $ 1,055,400 521.10 Notes 31 Replacement Tasers 562.00 Notes 41 S.A.I.V.S. (Special Assault Investigation & Victims) 594.21 Notes 64 Two Police Dept Patrol SUV's Page 155 2017-2018 EXPENDITURE BUDGET Special Investigative Unit Special Investigative Unit Expenditures 2013-2014 Actual 2015-2016 Budget 2017-2018 Budget 104.3.521.21 21 Uniforms $ - $ 750 $ - 31 SIU Supplies 1,613 2,650 1,500 32 Fuel Consumed 833 400 - 41 Professional Services 1,249 1,750 1,500 42 Communication 348 300 200 43 Travel 1,426 750 - 48 Repairs & Maintenance 1,000 1,300 1,300 49 Miscellaneous 2,231 2,750 2,000 98 Interfund Repairs & Maintenance 80 - - Total Special Investigative Unit $ 8,780 $ 10,650 $ 6,500 104.9.508.30 00 Est Restricted Fund Balance -Ending $ 50,575 $ 60,420 $ 62,000 Total Special Investigative Unit $ 59,355 $ 71,070' $ 68,500 Page 156 2017-2018 EXPENDITURE BUDGET Community Events Community Events Expenditures 2013-2014 Actual 2015-2016 Budget 2017-2018 Budget 107.6.557.30 10 Salaries & Wages - Finance $ - $ - $ 3,224 20 Personnel Benefits - Finance - - 1,576 41 Professional Services 135,110 192,000 190,000 10 Salaries & Wages - Administration - - 13,210 20 Personnel Benefits - Administration - - 5,990 Total Administration $ 135,110 $ 192,000 $ 214,000 107.9.508.30 00 Est Restricted Fund Balance -Ending $ 50,990 $ 37,080 $ 56,500 Total Community Events $ 186,100 $ 229 ,080 $ 270,500 Page 157 2017-2018 EXPENDITURE BUDGET Paths & Trails Paths & Trails Expenditures 2013-2014 Actual 2015-2016 Budget 2017-2018 Budget 108.9.508.30 Est Restricted Fund Balance -Ending $ 3,246 $ 5,500 $ 7,780 Total Paths & Trails 3,246 5,500 7,780 2017-2018 EXPENDITURE BUDGET Real Estate Excise Tax Real Estate Excise Tax Expenditures 2013-2014 Actual 2015-2016 Budget 2017-2018 Budget 109.6.597.00 01 Operating Transfers Out REET 1 $ - $ 681,027 $ 331,610 02 Operating Transfers Out REET 2 - 952,650 286,750 Total Interfund Transfers $ - $ 1,633,677 $ 618,360 109.9.509.30 01 Est End Restricted Fund Balance REET 1 $ - $ 287,005 $ 473,114 02 Est End Restricted Fund Balance REET 2 - 513,799 1,215,726 Total Restricted Fund Balance End $ - $ 800,804 $ 1,688,840 Total Real Estate Excise Tax - 2,434,481 2,307,200 * REET was previously tracked in Fund 302 Cumulative Reserve for Municipal Facilities. To provide better clarity, REET was moved to this new special revenue fund & Fund 302 was renamed Capital Construction Fund Page 158 2017-2018 EXPENDITURE BUDGET Impact Fee Impact Fee Expenditures 2013-2014 Actual 2015-2016 Budget 2017-2018 Budget 111.5.544.70 49 Miscellaneous -Transportation $ 30,616 $ 100,000 $ 100,000 Total Impact Fee to Developers $ 30,616 $ 100,000 $ 100,000 111.5.597.00.00 Operating Transfers -Out Transportation $ - $ 150,000 $ 50,000 Operating Transfers -Out Parks - 80,000 288,700 Operating Transfers -Out McCormick Wds 444,772 62,500 57,000 Total Interfund Transfers $ 444,772 $ 292,500 $ 395,700 111.9.508.30 30.00 Est Rest Fund Balance -Trans Ending $ 501,836 $ 375,510 $ 530,120 31.00 Est Rest Fund Balance -Parks Ending 165,812 246,620 56,700 32.00 Est Rest Fund Balance-MW Parks Ending 174,793 113,880 - 33.00 Est Restricted Fund Balance-Bayside Ending - 102,420 146,720 34.00 Est Rest Fund Balance -Trans. Ending - - 381,760 Total Restricted Fund Balance End $ 842,441 $ 838,430 $ 1,115,300 Total Impact Fee $ 1,317,829 $ 1,230,930 $ 1,611,000'' Page 159 Page 160 2017-2018 EXPENDITURE BUDGET Debt Service Fund 2003 Limited Tax GO Refunding Expenditures 2013-2014 Actual 2015-2016 Budget 2017-2018 Budget 206.6.591.89 71 General Obligation Bonds $ 266,450 $ 281,050 $ 302,950 Total Redemption of Long Term Debt $ 266,450 $ 281,050 $ 302,950 206.6.592.89 83 Interest on Long -Term External Debt $ 66,329 $ 48,727 $ 28,660 Total Interest & Other Debt Service Costs $ 66,329 $ 48,727 $ 28,660 Total 2003 Limited Tax GO Refunding $ 332,779 $ 329,777 $ 331,610 2017-2018 EXPENDITURE BUDGET Debt Service Fund 1984 Refunding Expenditures 2013-2014 Actual 2015-2016 Budget 2017-2018 Budget 621.6.591.34 71 Principal $ 14,000 $ 14,000 $ 5,000 Total Refunding Debt-Prinicipal $ 14,000 $ 14,000 $ 5,000 621.6.592.34 83 Interest on Long -Term External Debt $ 2,931 $ 1,550 $ 250 Total Interest & Other Debt Service Costs $ 2,931 $ 1,550 $ 250 Total 1984 Refunding $ 16,931 15,550 $ 5,250 Page 161 Page 162 2017-2018 Capital Budget Current Expense Fund 001 001.1.594.18.64 Springbrook (Accella) Cloud Conversion Move financial software suite from server to Cloud 001.1.594.18.64 Color Printer - DCD requires a new Color Printer for 720 Prospect St Funded by Operating Revenues 67,500 2017 2018 63,000 4,500 Total Current Expense Fund 001 67,500 67,500 City Street Fund 002 VUWorks GIS management & Implementation Software Mini35 - Sheeps Foot Compactor for trench/structure backfill compaction. GPS Unit to continue GPS platform development Funded by Operating Revenues 21,600 2017 14,000 1,000 6,600 2018 Total City Street Fund 002 21,600 21,600 Criminal Justice Fund 103 Ford Police Utility/SUV (3) -to replace depleted assets Funded by Criminal Justice Fund Revenues 288,405 2017 2018 142,005 146,400 Total Criminal Justice Fund 103 288,405 142,005 146,400 Capital Construction Fund 302 594.76.63 594.77.63 Funded By: 334.02.70 397.00.00 397.00.00 397.00.00 397.00.00 2017 2018 Clayton Park Irrigation system 6,000 McCormick Park Phase II -Construction 955,450 RCO Grant Transfer In- Current Expense Fund -Central Park Irrigation Transfer In-REET Fund 109 Real Estate Excise Tax Revenues Transfer In -Impact Fee Fund 111-MW Park Impact Fees Transfer In -Impact Fee Fund 111-Parks Impact Fees 323,000 6,000 286,750 57,000 288,700 Total Capital Construction Fund 302 961,450 6,000 955,450 Cumulative Reserve Equipment Replacement Fund 303 594.76.64 Funded By: 2017 2018 PW Crew Truck 25,000 Transfer In from Current Expense Fund 001 Operating revenues 25,000 Total Cumulative Reserve Equip. Replace. Fund 303 25,000 25,000 Page 163 2017-2018 Capital Budget Street Capital Projects Fund 304 595.12.63 Bay St Pedestrian Path -Segment #3 Construction 595.14.63 Old Clifton/Anderson Hill Rd Intersection-PS&E 595.20.61 Tremont Widening -Right of Way Management 595.21.61 Bay St Pedestrian Path - Right of Way and Easements Funded By: 333.20.20 333.20.20 334.03.60 397.00.00 86.5% with FHWA/WSDOT Grant -Tremont Widening 13.5% Street Capital Projects fund revenues - Tremont Widening 86.5% with FHWA/WSDOT Grant -Bay St Enhancement Right of Way & Easements 13.5% Street Capital Projects fund revenues - Bay St Enhancement Right of Way & Easements State Direct Grant- Bay Street Pedestrian Path Segment #3 construction Street Capital Projects Fund revenues -Bay Street Pedestrian Path Segment #3 construction Transfer In -Impact Fee Fund 111-MW Trans Impact Fees -Old Clifton/ Anderson Hill Rd Intersection 8,300 1,296 898,198 140,181 480,000 50,000 50,000 2017 530,000 50,000 4,798 1,038,379 4,798 Total Street Capital Projects Fund 304 1,627,975 1,623,177 4,798 Water Sewer Uti 594.34.63 594.34.63 594.34.63 594.34.63 594.34.63 594.34.63 594.34.64 594.35.64 594.35.64 594.34 & .35.64 594.34 & .35.64 594.34 & .35.64 Funded by: 391.80.00 397.00.00 ity Fund 401 Well #9 Construction Well #10/13 Design & Construction Water Rights Water Main (Pipe) Replacement Pressure Reducing Valve Station(s) design & Installation McCormick SS Pump Station 1&2 retrofit design Meter Reading Vehicle Golden Pond Sanitary Sewer Lift Station Emergency Generator Bay St SS Pump Station -Von Chopper Pump Installation VUWorks GIS management & Implementation Software Mini35 - Sheeps Foot Compactor for trench/structure backfill compaction. GPS Unit to continue GPS platform development DWSRF Intergovernmental Loan -Well 10/13 Transfer in from WS Cumulative Reserve Water Sewer Utility Operating Revenues 5,000,000 1,450,000 1,410,200 2017 1,000,000 2,500,000 105,000 250,000 50,000 400,000 25,000 35,000 60,000 70,000 2,000 13,200 2018 600,000 2,500,000 250,000 Total Water Sewer Utility Fund 401 7,860,200 4,510,200 3,350,000 Page 164 2017-2018 Capital Budget Storm Drainage Utility Fund VUWorks GIS management & Implementation Software Mini35 - Sheeps Foot Compactor for trench/structure backfill compaction. GPS Unit to continue GPS platform development Aquarius Database -Water data management software for tracking water quality Funded by Operating Revenues Total Storm Drainage Utility Fund 421 2017 14,000 1,000 6,600 20,000 41,600 41,600 41,600 2018 Page 165 Page 166 GLOSSARY OF BUDGET TERMS ACCOUNT: A chronological record of public funds showing receipts, disbursements, and balances. ACCOUNTING SYSTEM: The total set of records and procedures, which are used to record, classify, and report, information on the financial status and operations of an entity. ACCOUNTS PAYABLE: A short-term liability account reflecting amounts owed to private person(s) or organization(s) for goods and services received by a government. ACCOUNTS RECEIVABLE: An asset account reflecting amounts due from a private person(s) or organization(s) for goods and services furnished by a government (not including amounts due from other funds or governments). ACCRUAL BASIS OF ACCOUNTING: The method of accounting under which revenues are recorded when they are earned and expenses are recognized when incurred. The actual receipt or distribution of cash is not a determining factor. AD VALOREM TAXES: A tax levied on the assessed value of real property. ADOPTED BUDGET: The financial plan adopted by the City Council which forms the basis for appropriations. ALLOCATION: To set aside or designate funds for specific purposes. An allocation does not authorize the expenditure of funds. AMORTIZATION: (1) The portion of the cost of a limited life or intangible asset charged as an expense during a particular period. (2) The reduction of debt by regular payments of principal and interest sufficient to retire the debt by maturity. ANNEXATION: The incorporation of land into an existing city with a resulting change in the boundaries of that city. ANNUAL DEBT SERVICE: The amount required to be paid in a calendar year for (1) interest on all bonds then outstanding; and (2) principal of all bonds then outstanding, but excluding any outstanding term bonds. ANNUAL FINANCIAL REPORT: The official annual report of a government. It includes (a) the five combined statements — overview and their related notes, and (b) combines statements by fund type and individual fund financial statements prepared in conformity with GAAP. It also includes necessary supporting schedules to demonstrate compliance with finance -regulated legal and contractual provisions, required supplementary information, extensive introductory material and a detailed statistical section. Page 167 APPROPRIATION: An authorization made by the City Council, which permits officials to incur obligations against and to make expenditures of governmental resources. Appropriations are usually made for fixed amounts and are typically granted for a one-year period. ARBITRAGE: Classically, the simultaneous purchase and sale of the same or an equivalent security in order to profit from price discrepancies. In government finance, the most common onounnnma of arbitrage involves the investment of the proceeds from the sale of tax-exempt securities in a taxable money market instrument that yields a higher rata, resulting in interest revenue in axoaoo ufinterest costs. ASSESSED VALUATION: The estimated value placed upon real and personal property by the County Assessor ao the basis for levying property taxes. ASSETS: Property owned byagovernment, that has arecognized monetary value. AUDIT: An examination to determine the accuracy and validity of records and reports or the conformity of procedures with established policies. BALANCED BUDGET: Abudget inwhich current expenditures donot exceed current projected revenues. BALANCE SHEET: Aotabemert presenting the financial position of an andh/ by disclosing the value of its assets, liabilities, and equities as of a specific date. BARS: The State ofWashington prescribed Budgeting, Accounting, and Reporting System Manual required for all governmental entities in the state of Washington. BASE BUDGET: Ongoing expense for perounmel, contractual aanioea, and the replacement of supplies and equipment to maintain service levels previously authorized by the City Council. BASIC FINANCIAL STATEMENTS: Those financial statements necessary for the fair presentation of the financial position and results of operations of an entity in conformity with GAAP. The basic financial statements include a balance sheet, an "all-inclusive" operating ubab*mant, a budget comparison statement (for all governmental funds for which annual appropriated budgets are aduptad), and a statement ofchanges in Ununoio| position (for proprietary funds, pension trust funds and non -expendable trust funds). BASIS OFACCOUNTING: Ahenn used to refer to when revenuon, expenditureo, expenneo, and transfers — and the related assets and liabilities - are recognized in the accounts and reported in the financial statements. 8ponifioaUy, it relates to the timing of the measurements made, regardless of the nature of the meanunement, on either the cash nraccrual method. BIENNIAL BUDGET: A plan of financial operation embodying an aodmaba of proposed expenditures for a two year period of time and the proposed means of financing them. BOND: Awhttnn promise to pay specified sum of money, called the matuhhydate(s). together with periodic interest at specified rate. The difference between a note and a bond isthat the latter runs for a longer period of time and requires greater legal formality. BOND ANTICIPATION NOTES (BANG): Short henn interest -bearing notes issued in anticipation of bond proceeds to be received at later date. The note is retired from proceeds of the bonds to which it is related. BOND REGISTRAR: The fiscal agency ofthe State of Washington in either 8eoUle. WA or New York, NY, for the purposes of registering and authenticating the bundo, maintaining the bondo, and bond register, effecting transfer of ownership cfthe bonds and paying interest onand principal ofthe bonds. BUDGET: A plan of financial operation embodying an estimate of proposed expenditures for a given period and the proposed means of financing them. BUDGET AMENDMENT: Achange to a budget adopted in accordance with state law. Abudgat may baamended to increase expend itu res/expenses at a fund level by ordinance without public notice or public hearing requirements, when unanticipated revenues occur oremergencies exist. CAPITAL ASSETS: Land, improvements to |and, eaaements, buUdingo, building improvements, vehicleo, machinery, equipmant, works of art and historical tnaaaunes, infrantrucfura, and all other tangible or intangible aaaoio that are used in operations and that have initial useful lives extending beyond a single reporting period. CAPITAL BUDGET: A plan of proposed capital outlays and the means of financing them. The capital budget may be enacted as part of the complete annual budget including both capital and operating outlays. CAPITAL OUTLAYS: Expenditures which result in the acquisition of or addition to capital assets. CAPITAL PROJECTS: Projects which purchase cvconstruct capital assets. Typkm|k\ noapha| project encompasses a purchase of land or construction of a building or facility, with a life expectancy of more than 10 years. CASH BASIS: A basis of accounting under which transactions are recognized only when cash is received or disbursed. CASH DISCOUNT: An allowance received or given if payment is completed within a stated period of time. CASH EQUIVALENT: Short-term, highly liquid investments that are both (1) readily convertible into cash and (2) nn near their CERTIFICATE OF DEPOSIT: A negotiable or non-negotiable receipt for monies deposited in a bank or other financial institution for a specified period for a specified rate of interest. COLA: Cost of Living Allowance. COMPREHENSIVE PLAN: A general plan that outlines growth and land use for residential, commercial, industrial, and open space areas. CONCURRENCY: The improvements that are in place at the time the impacts of development occur, or that the necessary financial commitments are in place. Public facilities and services shall be adequate to serve the development at the time the development is available for occupancy and use without decreasing current service levels below locally established minimum standards. CONNECTION FEES: Fees charged to join or to extend an existing utility system. CONSUMER PRICE INDEX (CPI): A statistical description of price levels for a fixed market basket of goods and services provided by the U.S. Department of Labor. The index is used as a measure of the increase in the cost of living. CONTINGENCY: A budgetary reserve set aside for emergencies or unforeseen expenditures not otherwise budgeted for. COST ACCOUNTING: Accounting which assembles and records all costs incurred to carry out a particular activity or to deliver a particular service. CURRENT: A term which, applied to budgeting and accounting, designates the operations of the present fiscal period as opposed to past or future periods. It usually connotates items likely to be used up or converted into cash within one year. CURRENT LIABILITIES: Liabilities which are payable within the next operating cycle. DEBT: An obligation resulting from the borrowing of money or from the purchase of goods and services. Debts of governments include: bonds, registered warrants, notes, contracts and accounts payable. DEBT LIMIT: The maximum amount of gross or net debt which is legally permitted. DEBT SERVICE FUND: Funds used to account for and report financial resources that are restricted, committed, or assigned to expenditure for principal and interest. Debt service funds should be used to report resources if legally mandated. Financial resources that are being accumulated for principal and interest maturing in future years also should be reported in debt service funds. Page 170 DEBT SERVICE REQUIREMENT: The amount of money required to pay interest on outstanding debt, serial maturities of principal for serial bonds, and required contributions to accumulate monies for future retirement of term bonds. DEFICIT: (1) The excess of the liabilities of a fund over its assets. (2) The excess of expenditures over revenues during an accounting period; or, in the case of proprietary funds, the excess of expense over income during an accounting period. DELINQUENT TAXES: Taxes remaining unpaid on and after the date on which a penalty for nonpayment is attached. Even though the penalty may be subsequently waived and a portion of the taxes may be abated or canceled, the unpaid balances continue to be delinquent taxes until abated, canceled, paid or converted into tax liens. DEPLETION: (1) The reduction in quantity of a natural resource (wasting asset), such as: coal, standing timber, or a rock quarry. (2) The portion of the cost of a wasting asset which is charged as an expense during a particular period. DEPRECIATION: (1) Expiration in the service life of capital assets, other than wasting assets. (2) The portion of the cost of a capital asset other than a wasting asset which is charged as an expense during a particular period. In accounting for depreciation, the cost of a capital asset, less any salvage value, is prorated over the estimated service life of such an asset, and each period is charged with a portion of such cost. Through this process, the entire cost of the asset is ultimately charged off as an expense. DUE FROM OTHER FUNDS: An asset account used to indicate amounts owed to a particular fund by another fund for goods or services rendered. This account includes only short-term obligations on open account, not interfund loans. ENCUMBRANCES: Obligations in the form of purchase orders, contracts or salary commitments which are chargeable to an appropriation and for which a part of the appropriations is reserved. They cease to be encumbrances when paid or when actual liability is set up. ENDING FUND BALANCE: The cash balance remaining at the end of the fiscal year available for appropriation in future years. ENTERPRISE FUND: Proprietary fund type used to report an activity for which a fee is charged to external users for goods or services. ENTITLEMENT: The amount of payment to which a state or local government is entitled as determined by the federal government pursuant to an allocation formula contained in applicable statues. EXPENDITURES/EXPENSES: Where accounts are kept on the accrual or modified accrual basis of accounting, the cost of goods received or services rendered whether cash payments have been made or not. Where accounts are kept on a cash basis, expenditures are only recognized when the cash payments for the above purposes are made. Page 171 FICA: Federal Insurance Contribution Act is an employment tax levied against both an employee and employer for Social Security and Medicare taxes. FISCAL YEAR: A 12-month period to which the annual operating budget applies and at the end of which a government determines its financial position and results of its operations. FIXED ASSETS: Long-lived tangible assets obtained or controlled as a result of past transactions, events or circumstances. Fixed assets include: buildings, equipment, improvement other than buildings, and land. FUND: A fiscal and accounting entity with a self -balancing set of accounts recording cash and other financial resources, together with all related liabilities and residual equities or balances, and charges therein, which are segregated for the purpose of carrying on specific activities or attaining certain objectives in accordance with special regulations, restrictions, or limitations. FUND BALANCE: The excess of an entity's assets over its liabilities. A negative fund balance may be called a deficit. GAAFR: "Governmental Accounting, Auditing and Financial Reporting". Published by the Government Finance Officers Association to provide guidance for the application of accounting principles for governments. GAAP: Generally Accepted Accounting Principles are standards used for accounting and reporting in both private industry and government. GASB• Government Accounting Standards Board, established in 1985 to regulate the rules and standards for all governmental agencies. GENERAL FUND: Fund used to account for and report all financial resources not accounted for and reported in another fund. GENERAL LEDGER: A book, file or other device which contains the accounts needed to reflect the financial position and the results of operations of an entity. In double entry bookkeeping, the debits and credits in the general ledger are equal. Therefore, the debit balance equals the credit balance. GOVERNMENTAL FUNDS Funds generally used to account for tax -supported activities. There are five different types of governmental funds: the general fund, special revenue funds, debt service funds, capital projects funds, and permanent funds. GRANT: A contribution of assets (usually cash) by one governmental unit or other organization to another. Typically, these contributions are made to local governments from the State and Federal governments. Grants are usually made for specific purposes. Page 172 IMPACT FEES: Fees charged to developers to cover, in whole or in part, the anticipated cost of improvements that will be necessary as a result of the development. IMPROVEMENTS: An addition made to, or change made in, a capital asset, other than maintenance, to prolong its life or to increase its efficiency or capacity. The cost of the addition or change is added to the book value of the asset. INDEBTEDNESS: The state of owing financial resources to other financial institutions and investors. INTERFUND LOANS: A loan made by one fund to another and authorized by resolution or ordinance. INTERFUND PAYMENTS: Expenditures made to other funds for services rendered. This category includes interfund repairs and maintenance. INTERFUND TRANSFERS: Contributions from one City fund to another in support of activities of the receiving fund. Loans are not included. INTERGOVERNMENTAL COSTS: Costs or expenses paid from one government to another government for services. These costs include, but are not limited to, such things as: dispatch and jail services, animal control services, audit and voter costs. INTERNAL CONTROL: A plan of organization for purchasing, accounting and other financial activities, which, among other things, provides that: • The duties of employees are subdivided so that no single employee handles financial action from beginning to end. • Proper authorization from specific responsible officials is obtained before key steps in the processing of a transaction are completed. • Records and procedures are arranged appropriately to facilitate effective control. INTERNAL SERVICE FUND: Funds used to account for the financing of goods or services provided by one department or agency to other departments or agencies of the City, or to other governments, on a cost -reimbursement basis. INVESTMENT: Securities and real estate purchased and held for the production of income in the form of interest, dividends, rentals, and base payments. This does not include capital assets used in governmental operations. JOINT VENTURE: A legal entity or other organization that results from a contractual arrangement and that is owned, operated, or governed by two or more participants as a separate and specific activity subject to joint control, in which the participants retain (a) an ongoing financial interest, or (b) an ongoing financial responsibility. Page 173 JOURNAL: A book of original entry. Journals provide a chronological history of financial transactions and systematic means by which the transactions can be distributed and summarized for convenient posting to ledger accounts. LEDGER: A group of accounts in which are recorded the financial transactions of an entity. LEVY: (verb) To impose taxes, special assessments, or service charges for the support of governmental activities. (noun) The total amount of taxes, special assessments, or service charges imposed by a government. LIABILITIES: Debt or other legal obligations arising out of transactions in the past which must be liquidated, renewed, or refunded at some future date. LONG TERM DEBT: Debt with a maturity of more than one year after the date of issuance. MAINTENANCE: Activities that ensure the right-of-way and each type of roadway, roadway structure and facility remain, as nearly as practical, in its original, as constructed condition or its subsequent improved condition. Also known as the act of keeping capital assets in a state of good repair. It includes preventative maintenance, normal periodic repairs, replacement of parts or structural components, and other activities needed to maintain the asset so that it continues to provide normal services and achieves its optimum life. MATCHING REQUIREMENT: A requirement that grant recipients contribute resources to a program that equal or exceed a predetermined percentage of amounts provided by the grantor. MODIFIED ACCRUAL BASIS: Basis of accounting according to which (a) revenues are recognized in the accounting period of which they become available and measureable and (b) expenditures are recognized in the accounting period in which the fund liability is incurred, if measureable, except for unmatured interest on general long-term debt and certain similar accrued obligations, which should be recognized when due. MODIFIED CASH BASIS: Modified cash basis is the cash basis of accounting adjusted for Washington State statute. RCW 35.33.515 and RCW 35QA.33.150 require cities to keep their books open in order to pay December bills by the following January 20. RCW 36.40.200 requires counties to keep their books open until January 30 in order to pay December bills and charge the prior -year budget. NET REVENUE: The revenue of the system less the cost of maintenance and operation of the system. NET ASSETS: The difference between assets and liabilities reported in government -wide financial statements, proprietary fund financial statements, and fiduciary fund financial statements. NOMINAL INTEREST RATE: Page 174 The contractual interest rate shown on the face and in the body of a bond and representing the amount of interest to be paid, in contrast tnthe effective interest rate. NOTE PAYABLE: In ganara|, an unconditional written promise signed by the maker to pay o certain sum in money on demand or at a fixed or determinable time either to the bearer or to the order of person designated therein. NOTE RECEIVABLE: An unconditional written promise signed by the maker, to pay a certain sum in money on demand or at fixed nrdeterminable future time either tothe bearer ortnthe order ofaperson designated therein. The note may be held by the reporting governmental unit as designated payee or by endorsement. OBJECT: As used in expenditure daaoUhoaUon, this henn applies to the type of ham purchased or the aamioe obtained (*o distinguished from the raauka obtained from expenditures). Examples include: personnel services, supplies, and services and charges. OFM: Office of Financial Management OPERATING FUNDS: Resources derived from recurring revenue sources used to finance ongoing operating expenditures and pay-ao-you-gocapital projects. OPERATING REVENUES: Those revenues received within the present fiscal year. OPERATING BUDGET: Plans of current expenditures and the proposed means of financing them. The annual operating budget is the primary means bywhich most ofthe financing, acquisition, spending, and service delivery activities of a government are controlled. The use of annual operating budgets is usually required by law. ORDINANCE: A statute or regulation enacted by the City Council. OTHER SERVICES AND CHARGES: A basic classification for services, other than personnel services, which are needed by the City. This item includes professional aervioea, oommunioaUon, travel, adwartiaing, tnaining, dues and subscriptions, printing, equipment rental and costs, insurance, public utility services, repairs and maintenance. PERG: Public Employees Retirement Systems provided by the State of Washington for all employees other than Police and Fire. PERSONNEL COSTS: Costs that include all oa|aheo, wagee, and benefits for all fuU4ime, part-time, seasonal and temporary employees. PETTY CASH: A sum of money set aside on an imprest basis for the purpose of making change or paying small obligations for which the issuance of a formal voucher and warrant would be too expensive and time consuming. Petty cash accounts are sometimes referred to as petty cash "funds". However, they are not "funds" in the sense of governmental accounting fund types. Petty cash accounts should be reported as assets of the fund of ownership. POSTING: The act of transferring to an account in a ledger the data, either detailed or summarized, contained in a book or document of original entry. PRIOR YEAR: The fiscal year immediately preceding the current year. PROPERTY TAXES: Ad valorem tax certified to the county assessor by a local government unit. PROPRIETARY FUND: Funds that focus on the determinations of operating income, changes in net assets (or cost recovery), financial position and cash flows. There are two different types of proprietary funds: enterprise funds and internal service funds. QUALIFIED OPINION: A modification of the independent auditor's report on the fair presentation of the financial statements indicating that there exists one or more specific exceptions to the auditor's general assertion that the financial statements are fairly presented. RCW: Revised Code of Washington. Laws of the State of Washington enacted by the State Legislature. REET: Real Estate Excise Tax. A tax upon the sale of real property from one person or company to another. REGISTERED WARRANT: A warrant which is registered by the paying officer for future payment due to a present lack of money and which is to be paid in the order of its registration. RESERVE FUND: A fund established to accumulate money from year to year for a specific purpose, such as the purchase of new equipment. RESTRICTED ASSETS: Moneys or other resources, the use of which is restricted by legal or contractual requirements. In governmental accounting, special treatments are applied to restricted assets arising out of revenue bond indentures in enterprise funds. RESTRICTED FUND BALANCE: Portion of fund balance that reflects constraints placed on the use of resources (other than nonspendable items) that are either: a) externally imposed by creditors, grantors, contributors, or laws or regulations of other governments; or b) imposed by law through constitutional provisions or enabling legislation. RETAINED EARNINGS: Page 176 An equity account reflecting the accumulated earnings of the City. REVENUE: Income received by the City in support of a program of services to the community. STANDARD COSTING: Method of estimating the historical cost of a capital asset by establishing the average cost of obtaining the same or a similar asset at the time of acquisition. SPECIAL REVENUE FUND: Funds used to account for and report the proceeds of specific revenue sources that are restricted or committed to expenditure for specific purposes other than debt service or capital projects. STATE SHARED REVENUE: Revenues received from the State of Washington from sources like the liquor tax and gas taxes. SUBSIDIARY ACCOUNT: One of a group of related accounts supporting in detail the debit and credit summaries recorded in a control account (e.g. the individual property taxpayers' accounts for the taxes receivable control account in the general ledger). SUBSIDIARY LEDGER: A group of subsidiary accounts, the sum of balances of which should equal the balance of the related control account. SUPPLIES: A basic classification of expenditures for articles and commodities purchased for consumption or resale. Examples include: office and operating supplies, fuel, power, water, gas, inventory or resale items, small tools, and equipment. SYSTEM DEVELOPMENT CHARGES: A charge levied on new construction to help pay for additional expenses created by this growth or to compensate for already existing capacity in key facilities and systems already in place which support the new development. TAX: Compulsory charges levied by a government for the purpose of financing services performed for the common benefit. This term does not include specific charges made against particular persons or property for current or permanent benefits such as special assessments. Neither does the term include charges for services rendered only by those who pay, for example, water service charges. TAX ANTICIPATION NOTES: Short-term, interest —bearing notes issued by a government in anticipation of tax revenues to be received at a later date. The note is retired from the tax revenues to which it is related. TAX LEVY: Total amount of ad valorem tax certified by the city. TAX RATE: Page 177 The amount of tax stated in terms of units per $1,000 of assessed value of taxable property. The tax rate is the result of dividing the tax levied by the assessed value of the taxing district. TRIAL BALANCE: A list of the balances of the accounts in a ledger kept by double entry, with the debit and credit balances shown in separate columns. If the totals of the debit and credit columns are equal or their net balance agrees with a control account, the ledger from which the figures are taken is said to be "in balance". UNAPPROPRIATED ENDING FUND BALANCE: An amount set aside in the budget to be used as cash carry over to the next year's budget to provide needed cash flow until other money is received. No expenditures can be made from the Unappropriated Ending Fund Balance during the fiscal year in which it is budgeted. UNASSIGNED FUND BALANCE: Residual classification for the general fund. This classification represents fund balance that has not been assigned to other funds and that has not been restricted, committed, or assigned to specific purposes within the general fund. The general fund should be the only fund that reports a positive unassigned fund balance amount. UNQUALIFIED OPINION: An auditor's opinion, which states that the basic financial statements of a specified entity are fairly presented in conformity with GAAP, applied on a basis consistent with the prior year. USER FEES: The payment of a fee for direct receipt of a public service by the person benefiting from the service. VOUCHER: A written document which evidences a propriety of transactions and usually indicates the accounts in which they are to be recorded. WARRANT: An order drawn by the legislative body or an officer of a government upon its treasurer directing the latter to pay a specified amount to the person named or to the bearer. It may be payable upon demand, in which case it usually circulates the same as a bank check; or it may be payable only out of certain revenues when and if received, in which case it does not circulate as freely. Page 178