04/16/2024 - PacketPort Orchard
Council Finance Committee
April 16, 2024
4:00 pm-5:00 Zoom Link
Council Conference Room
https://us02web.zoom.us/j/85816380247
US: +12532158782, 85816380247# or +12532050468, 85816380247#
1) Finance Department (15 mins) Finance Director, Noah Crocker
a. Sales Tax & REET Revenue Report
b. Preliminary Treasurers Report — Funds, accounts
c. Monthly budget Report
2) Information Technology (IT) Update (20 mins) Finance Director, Noah Crocker
a. Cybersecurity-SAO Audit
b. CJIS Certified Update
c. Cybersecurity 2022 grant update
d. Cybersecurity 2023 grant pending
e. City Hall Update -Police
f.
3) Budget Amendment 2023-2024 (10 mins) Finance Director, Noah Crocker
a. TIP 1.15 Pottery Ave Non -motorized
Other Items to come before the Committee.
Schedule Next Meeting Date
Role of the Finance Committee
The finance committee provides oversight of city budgeting, financial planning, and financial reporting. The committee recommends long-range
financial goals along with funding strategies for the operating and capital budgets. Human resource issues requiring policy direction are brought
before the committee. The committee serves as the advisory forum for transportation and street maintenance funding, and funding relating to the
transportation benefit district.
Sales Tax Collections
Population
Summary of Budget to
Actuals
2022
2023
2024
Biennial
Budget
Actual
5,340,000
6,865,000
6,895,000
13,760,000
7,783,763
7,719,461
1,964,292
9,683,754
Over/Under
$ 2,443,763
$
854,461
$
(4,930,708)
$ (4,076,246)
Actuals
2022
2023
2024
Biennial
January
February
March
April
May
June
July
August
September
October
November
December
$ 543,145
626,678
524,545
548,118
665,944
682,922
668,890
742,304
707,709
693,521
730,655
649,332
$ 656,711
684,990
572,419
539,880
606,994
616,122
689,627
725,037
663,517
653,847
684,362
1 625,956
$ 631,079
723,810
609,403
$ 1,287,789
$ 1,408,800
$ 1,181,822
$ 539,880
$ 606,994
$ 616,122
$ 689,627
$ 725,037
$ 663,517
$ 653,847
$ 684,362
$ 625,956
Total
$ 7,783,763
$ 7,719,461
$ 1,964,292
$ 9,683,754
Percentage of Biennial
Budget Received
70%
Actuals
Year over Year
%
Change
Change
$ (25,632)
-3.90%
$ 38,820
5.67%
$ 36,985
6.46%
is 50,173
12.62%
Real Estate Excise Tax (REET) Collections
Summary of Budget to
Actuals
2022
2023
2024
Biennial
Budget
Actual
$ 1,808,000
1,945,903
$ 1,800,000
2,112,110
$ 1,600,000
350,708
$ 3,400,000
$ 2,462,818
Over/Under
$ 137,903
$ 312,110
1 $ (1,249,292)
$ (937,182)
108%
Actuals
2022
2023
2024
Biennial
January
February
March
April
May
June
July
August
September
October
November
December
$ 82,213
166,226
204,469
126,410
151,824
190,761
249,922
172,743
181,406
151,035
121,635
147,258
$ 81,265 $
137,211
158,612
150,287
189,577
237,539
233,708
172,573
280,056
154,352
140,293
1 176,638
107,320
104,091
139,296
$ 188,585
$ 241,302
$ 297,908
$ 150,287
$ 189,577
$ 237,539
$ 233,708
$ 172,573
$ 280,056
$ 154,352
$ 140,293
$ 176,638
Total
$ 1,945,903
$ 2,112,110 $
350,708
$ 2,462,818
Percentage of Biennial
Budget Received
72%
Actuals
Year over Year
Change
%
Change
$ 26,055
32.06%
$ (33,120)
-24.14%
$ (19,316)
-12.18%
$ (26,381)
-7.00%
Budget
2024 estimated
Budget vs Actual
%
based on Syr avg
(Over/Under)
Over/Under
$
516,190
$
114,889
22.3%
$
620,872
$
102,938
16.6%
$
479,509
$
129,895
27.1%
$
461,296
#VALUE!
$
570,567
#VALUE!
$
566,524
#VALUE!
$
611,506
#VALUE!
$
642,161
#VALUE!
$
617,092
#VALUE!
$
606,655
#VALUE!
$
630,537
#VALUE!
$
572,093
#VALUE!
$
6,895,000
$
347,722
21.51%
Budget
2024 estimated
Budget vs Actual
%
based on Syr avg
(Over/Under)
Over/Under
$
80,407
$
26,913
33.5%
$
122,603
$
(18,512)
-15.1%
$
134,793
$
4,503
3.3%
$
118,291
#VALUE!
$
108,281
#VALUE!
$
139,665
#VALUE!
$
231,669
#VALUE!
$
133,480
#VALUE!
$
155,823
#VALUE!
$
128,521
#VALUE!
$
94,003
#VALUE!
$
152,465
#VALUE!
$
1,600,000
$
12,904
4%
Detail Report
Fund
001- Current Expense
002 - City Street Fund
003 - Stabilization Fund
103 - Criminal Justice
104 - Special Investigative Unit
107 - Community Events
108 - Paths & Trails
109 - Real Estate Excise Tax
111- Impact Mitigation Fee
206 - Bond Redemption Fund
302 - Capital Construction
304 - Street Capital Projects
401- Water -Sewer Utilities
403 - Water -Sewer Cumulative Reserve
411- Water Operating
412 - Water Stabilization
413 - Water Capital
414 - Water Debt Service
421- Storm Drainage Utility
422 - Storm Drainage Stabilization
423 - Storm Drainage Capital Facil
424 - Storm Drainage Debt Service
431- Sewer Operating
432 - Sewer Stabilization
433 - Sewer Capital
434 - Sewer Debt Service
500 - Equipment Rental and Revolving
631- Trust and Agency
632 - Wastewater Treatment Facil Fee
Grand Total:
4/16/2024 3:29:33 PM
Beginning Balance
18,243,330.75
4,018,947.18
3,098,939.97
836,944.32
101,808.73
409,288.52
16,147.00
6,280,366.99
8,886,839.97
100,907.35
7,500,627.23
2,353,446.31
0.00
0.00
4,728,106.76
1,026,023.68
9,712,087.17
0.00
1,963,446.61
576,461.97
203,667.42
0.00
8,299,178.59
1,535,490.09
8,241,408.54
870,850.77
3,584,080.64
6,325.21
6,667,721.56
99,262,443.33
Total Activity Ending Balance
-487,314.88
17,756,015.87
-28,532.52
3,990,414.66
14,122.22
3,113,062.19
23,621.53
860,565.85
327.84
102,136.57
12,850.92
422,139.44
182.24
16,329.24
156,395.01
6,436,762.00
364,573.32
9,251,413.29
463.69
101,371.04
14,010.38
7,514,637.61
9,545.70
2,362,992.01
0.00
0.00
0.00
0.00
-511,086.62
4,217,020.14
4,714.90
1,030,738.58
-240,324.08
9,471,763.09
0.00
0.00
-22,126.03
1,941,320.58
2,649.02
579,110.99
935.92
204,603.34
0.00
0.00
-161,031.75
8,138,146.84
7,056.06
1,542,546.15
233,736.63
8,475,145.17
4,001.83
874,852.60
-607,953.72
2,976,126.92
2,136.71
8,461.92
131,708.96
6,799,430.52
-1,075,336.72 98,187,106.61
Date Range: 03/01/2024 - 03/31/2024
Fund Summary
Page 5 of 5
ATCHFO
ING SEQUENCE
re
fif5TEVA
RDA
z
Jq R
IT DEPARTMENT 2023-2024 HIGHLIGHTS
m
Washington State Auditor's Office
Critical Infrastructure Audit
Port Orchard earned a perfect score on a
critical infrastructure audit conducted by
the Washington State Auditor's office.
This accomplishment signifies the
exceptional resilience and security of our
city's critical infrastructure, our
cybersecurity posture and user training
programs, and the commitment to
safeguarding critical systems and data.
IT DEPARTMENT 2023-2024 HIGHLIGHTS
m
Washington State Auditor's Office
Critical Infrastructure Audit
What is a Critical Infrastructure Audit?
This rigorous evaluation assesses the safeguards
in place to protect vital internal and public
systems, including:
• City Networking and Communications
• Devices and Endpoints
• Personally Identifiable Information (PII)
• Financial Records and Information
• Public Utilities
• Emergency Response Services and CAS
• Emergency Operations Center (EOC)
IT DEPARTMENT 2023-2024 HIGHLIGHTS
m
Washington State Patrol
CJIS Audit
Port Orchard also secured a perfect score
on its recent Criminal Justice Information
Services (CJIS) audit by the Washington
State Patrol Technology Division. This
rigorous assessment evaluates a city's
compliance with GIS standards for
safeguarding sensitive criminal justice
data and is required by state law every 3
yea rs.
IT DEPARTMENT 2023-2024 HIGHLIGHTS
m
Washington State Patrol
CJIS Audit
What is a CJIS Audit?
A CJIS audit is an inspection conducted to ensure
a criminal justice agency's compliance with the
FBI's Criminal Justice Information Services (CJIS)
Security Policy. This policy outlines the standards
for how agencies should handle Criminal Justice
Information (CJI).
IT DEPARTMENT 2023-2024 HIGHLIGHTS
m
Washington State Patrol
CJIS Audit
CJI refers to a broad range of sensitive data,
including:
• Biometric data: Fingerprints, DNA
• Identity history: Criminal records, arrest
wa rra nts
• Biographic data: Names, addresses, dates of
birth
• Property data: Stolen vehicles, recovered
weapons
• Case/incident history: Details of crimes and
investigations
IT DEPARTMENT 2023-2024 HIGHLIGHTS
A Perfect Score: What it Means
Earning perfect scores reflects our commitment to
safeguarding these essential systems. It
demonstrates that we have implemented strong
security measures to address potential threats and
ensure their continued functionality.
A Continuing Commitment
While these achievements are commendable, our
dedication to infrastructure security remains
constant. We will continue to collaborate with the
State Auditor's Office and Washington State Patrol
to leverage best practices in maintaining the
highest standards of protection.
IT DEPARTMENT 2023-2024 HIGHLIGHTS
FY22 State and Local Cybersecurity
Grant Program (SLCGP)
In 2023, Port Orchard submitted a
proposal, and was awarded a grant from
the DHS/FEMA FY 22 SLCGP funded
program in the amount of $36,450 for our
project proposal, "Cybersecurity: A Shared
Responsibility".
This project has been implemented, and
is at -85% completion, with funding to
be reimbursed. The project completion
date is expected to be early Summer
2024.
IT DEPARTMENT 2023-2024 HIGHLIGHTS
FY22 State and Local Cybersecurity
Grant Program (SLCGP)
Project Scope and Highlights:
• Conducting a security risk assessment to identify the
threats that our City is most likely to face.
• Selecting an MDR vendor and hardware/software
solution that meets the needs of the City and its
citizens (Critical Insight).
• Implement a 24x7 Managed Detection and Response
service, so limited staff and hours do not inhibit full
monitoring and prevention of data loss or
compromise.
• Implementation of more secure controls such as
MFA, increased endpoint security, and intrusion
detection/prevention.
IT DEPARTMENT 2023-2024 HIGHLIGHTS
FY23 State and Local Cybersecurity
Grant Program (SLCGP)
In 2024, Port Orchard will submit another
grant proposal for the DHS/FEMA FY23
SLCGP funded program for approximately
double the amount of our previous
proposal (N$68,000).
This will ensure continued funding of our
current efforts, and will add funding for
new networking hardware, security
software, immutable cloud archiving, and
staff training.
The proposal is due by May 10t", 2024.
IT DEPARTMENT 2023-2024 HIGHLIGHTS
m
POPD Technology and Security
Improvements
Thanks to the City Hall renovation, IT took
the opportunity to update and upgrade
many items in the Police area, including:
• Additional data ports throughout
• New networking hardware
• New monitors, wireless keyboards and
mice
• Docking stations for our Officers' new
Mobile Computer Terminals (MCTs)
from Kitsap 911
IT DEPARTMENT 2023-2024 HIGHLIGHTS
m
POPD Technology and Security
Improvements
Port Orchard IT Staff collaborated with
both Kitsap county, and Kitsap 911
(CENCOM) IT Departments to:
• Implement new software and
configurations for the new MCTs
• Create and deploy additional security
policies and measures
• Reconfigure and create new secure
network routes between all of the
entities' disparate networks
IT DEPARTMENT 2023-2024 HIGHLIGHTS
m
POPD Technology and Security
Improvements
Managed the installation of a new AXON
Interview room system, including:
• Two redundant video servers installed in the
City Hall server room
• Two cameras (one dome and one discrete)
• Two microphones
• A Touchscreen command controller outside the
room
Via the AXON Evidence.com cloud app, POPD
personnel can now securely view live or recorded
interviews through any POPD city devices,
including their mobile devices or tablets.
CI�B�RSE���t�TY
R..............
.........
LOCAE6%VERNMENTS
'-
Why it matters
• Our city holds a treasure trove of data - social security numbers,
financial records, criminal justice information, and more - making
us a prime target for cybercriminals.
• Compared to corporations, cities often have limited resources and
outdated systems, increasing vulnerability.
• Breaches can disrupt essential services, harm public safety, and
erode public trust.
Cybersecurity's role
• Protects critical data from breaches and ransomware attacks.
• Ensures smooth operation of government services citizens rely on.
• Builds public trust by demonstrating commitment to data security.
Strong cybersecurity is no longer optional for local governments. It is
essential to safeguard data, maintain operations, and keep our
FAR[) 0
information safe.
C
rV
L 0 c A E-i I,,
TY
MENTS
................::......... ........
Unfortunately, Local governments were prime targets for
ransomware attacks in 2023. Here's what we know:
Increased Frequency:
• Reports from the Center for Internet Security (CIS) and StateScoop
indicate a significant rise in ransomware incidents targeting state
and local governments compared to 2022.
• The figures suggest a jump of around 51 % in ransomware incidents
during the first eight months of 2023 alone.
Impact on Operations:
• A 2023 study by Sophos revealed that a staggering 69% of state
and local government organizations reported being hit by
ransomware in that year. This translates to a high possibility of
disruptions in critical services offered by these agencies.
Data Encryption:
• The Sophos study also found that data encryption, a hallmark of
ransomware attacks, was at its highest in three years within the
local government sector. This means a high chance of sensitive data
being locked by attackers unless a ransom is paid.
I Tr D E P..A-.-R.T,
MENT
While our team is small, the City of Port Orchard IT
Department is dedicated to providing exceptional
service and innovative solutions that empower our
city government and enhance the lives of our
residents. We are committed to excellence in all
areas, from maintaining secure and reliable
technology infrastructure to developing user-
friendly applications that streamline city services.
Through continuous learning, collaboration, and a
focus on innovation, we strive to be a leader in
municipal technology, ensuring our city thrives in
the ever -evolving digital age.
•
Ile
............ . .. . .. . .......... . ..
OR
c,m
11%
jr
I ir ■ 11 LiLijAhap
• • ■
Funding Sources
Current
Project Budget
Current Budget
Available
Remaining
Budget
Amendment
nd 001/002 to 304
$0
$0
$421743
nd 304-WSDOT TIB Grant
IIm
$650,000
$650,000
$0
nd 111-Transportation
pact (TIF)
144,050
$64,350
$3651207
Fund 304-Street Construction
Balance
$40,000
$40,000
$0
Fund 411 to 413-Water
Capital
$100,000
$100,000
$137,000
Fund 433-Sewer Capital
$500,000
$500,000
$209,000
Total
$1,434,050
$1,354,350
$753,950
New Project
Budget
$42,743
$650,000
$509,257
$40,000
$237,000
$709,000
$ 2,188, 000