05/18/2021 - MinutesRole 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.
City of Port Orchard
Council Finance Committee
A meeting of the Council Finance Committee was held remotely with all participants
using Zoom on May 18, 2021 at 5:00 p.m.
PRESENT: Council members John Clauson, Beck Ashby, Mayor Rob Putaansuu,
Director of Finance Noah Crocker, Public Works Director Mark Dorsey, Deputy Police
Chief Donna Main, DCD, Nick Bond.
The meeting was audio recorded.
Finance Report
The Finance Director discussed the Sales Tax and REET Revenue report
The sales tax revenue collected April 2021 is at 27% over its 2021 budget and 20% over
the 2020 actual sales tax revenue collected.
Real Estate Excise Tax collected thru April 2021 is at $640,230. This represents
approximately 46% of the biennial budget and approximately 264% of what was
budgeted for collections for 2021 YTD. The committee reviewed a fund balances and had
no questions or concerns.
The Finance Director reviewed the all-fund balances, and the committee had no
questions. The committee discussed timing of transfers to the stabilization accounts.
The Finance Director reported he made 1/3 of the 2021 budgeted amount for
stabilization transfer for all operating funds. He also transferred $250,000 from 001 to
002 as budgeted for preservation and operations.
Police Grant
The Kitsap County Sheriff’s Office is requesting to partner with South Kitsap Fire
Rescue, Kitsap Mental Health, and the City of Port Orchard and its Police Department to
seek a grant from the Washington Association of Chiefs and Sheriffs to fund a mental
health field response team.
The grant also requires the participation of a mental health professional, as defined in
RCW 71.05.020(38), to perform field response professional services. The mental health
professional may assist patrolling law enforcement officers either in the field or in an
on-call capacity. The mental health professional may also provide preventative, follow-
up, training on mental health field response best practices, or other services at the
direction of the local law enforcement agency.
If awarded, grant funds will be utilized to allow South Kitsap Fire & Rescue and Kitsap
Mental Health to allocate existing FTE for the purpose of providing two full-time
designated crisis responders (DCRs) and partial funding for a specialized fire/medic
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.
response person. This would create new field response teams to provide services to
benefit all partners, consisting of a DCR and fire/medical responder. Kitsap Mental
Health will provide the DCRs, and South Kitsap Fire Rescue will provide the specialized
fire/medical responder.
With support from the grant funding, the Kitsap County Sheriff’s Office will provide
additional support to this effort with its full-time crisis intervention officer (CIO). The
Port Orchard Police Department will contribute the existing services performed by its
shared Community Health Navigator as part of the program by continuing to provide
services and follow-up to 1st responder referrals for behavior health and dependency
issues.
The goal of the program is to have two mental health field response teams, primarily
focused on the south end of Kitsap County, with on-call twenty-four-hour coverage. It is
intended to also increase the response/assessment opportunities that occur upon jail
intake of subjects in crisis.
Should the joint proposal be approved by WASPC, the collaborating agencies will
develop an Interlocal Agreement to cover implementation and management. This will be
provided to the Council for review, approval, or additional guidance.
The pass-through grant funding will be managed by the Kitsap County Sheriff’s Office.
The City is not expected to incur any costs. The funding period is July 1st, 2021, through
June 30th, 2022. If the program remains successful, all participating agencies will
intend to reapply in 2022.
The Finance Committee was supportive of the grant submittal.
Water CFC Code-Exceptions
The Finance Director presented on the Water Capital Facility Charges and the chapter
on exceptions. The Finance Committee reviewed the current CFC as well as the
proposed alternatives. Staff is proposing Alternative D which is $11,571 cost per ERU
which the was supported by the Finance Committee. The key distinction with
alternative D is the use of a growth factor estimated by Department of Community
Development. There was a review of the purpose for Water Capital Facility Charges
under 13.04.030. The Port Orchard Municipal Code 13.04.030 (3) has criteria which
need to be met to receive an exception. The finance committee discussed the exception
code criteria. Furthermore, they discussed whether the code should be modified to
consider historical connections which may not qualify for an exception under the
current code during a re-developed project. The committee supported a further
discussion regarding connections fee’s pertaining to older historical building and re-
development.
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.
The Committee supported updating the CFC as planned at the 05.25.2021 meeting and
updating this analysis as soon as possible.
DCD discussed the rational for the implementation plan. The proposal is to have the
new fees become effective on June 14, 2021. However, any project for which a building
permit application was accepted by the City on or before March 1, 2021 shall only be
required to pay the applicable water capital facility charges that existed immediately
prior to the adoption of this ordinance (unless the building permit expires, or the
application is cancelled). Additionally, this exemption shall only be available if those
charges are paid in full by the applicant no later than close of business on August 31,
2021.
The committee was supportive of this implementation plan as well.
Bethel-Mitchel Design Amendment
The Public Works Director is proposing adding ~ $200k for an additional stand alone
alternative design for Bethel-Mitchel intersection which will be impacted by the Bethel-
Lincoln roundabout. The $200k would be a change order to the current Skilling’s
contract for this additional design and come forward in June. The proposal would be to
re-appropriate from the currently budgeted TIP 1.5A of $450,000 to this design project.
DCD advocated strongly to keep TIP 1.5A in the workplan as the community identifies
this as a high priority project. There was some discussion regarding phasing the TIP
1.5A to fit within the current funding and allowing for the re-allocation. This discussion
will be brought to the next Transportation Committee meeting.
The Finance Committee is supportive of re-appropriating funds.
Good of the Order
The meeting adjourned at 6:05 pm.