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City of Gig Harbor 2021 Budget

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City of Gig Harbor 2021 Budget City of Gig Harbor 2021 Budget COVER ART Since 1984, the Peninsula Art League, a non-profit artist’s organization, has sponsored the Gig Harbor Arts Festival. A competition for their annual event poster features the work of a local student. Proceeds from the festival fund scholarships for local artists. In honor of the League’s work and the work of the winning student, this artwork is featured on the cover of the City’s budget summary this year. The tradition began with the first poster in 2001 and continues each year. This year’s cover artwork was created by Breck Meagher, a Senior at Gig Harbor High School. The theme represents the active sea life in Puget Sound as is named “Red Fish.” CITY OFFICIALS ELECTED MAYOR Kit Kuhn COUNCIL MEMBERS Jim Franich Bob Himes Spencer Abersold Jeni Woock Tracie Markley Robyn Denson Le Rodenberg APPOINTED MUNICIPAL COURT JUDGE Zenon Olbertz CITY ATTORNEY Daniel P. Kenny MANAGEMENT STAFF CITY ADMINISTRATOR Bob Larson POLICE CHIEF Kelly Busey PUBLIC WORKS DIRECTOR Jeff Langhelm COMMUNITY DEVELOPMENT DIRECTOR Katrina Knutson FINANCE DIRECTOR David Rodenbach HUMAN RESOURCES DIRECTOR Kameil Borders INFORMATION SYSTEMS MANAGER Keith Smith CITY CLERK Molly Towslee COURT ADMINISTRATOR Stacy Colberg TOURISM & COMMUNICATIONS DIRECTOR Laura Pettitt TABLE OF CONTENTS MAYOR’S MESSAGE………………………………………………………………………………… i 1. BUDGET SUMMARY …………………………………………………………… ..... …………1 Budget Ordinance…………………………………………………………… ..................... …2 Property Tax Distribution and Population History ............................................................ 7 Organizational Chart ........................................................................................................ 8 Budget Process ................................................................................................................ 9 Budget Calendar ............................................................................................................ 16 Budget Document Organization ..................................................................................... 17 Revenue Analysis .......................................................................................................... 18 Budgeted Staffing Levels ............................................................................................... 20 Estimate of Ending Fund Balances ................................................................................ 21 Municipal Debt ............................................................................................................... 22 Resource and Expenditure Summaries - All Funds ....................................................... 25 2. GENERAL FUND - Fund 001 ............................................................................................. 28 General Fund Revenue Resource Summary ................................................................. 30 Expenditures: Non-Departmental - Dept. 01 ............................................................................ 34 Legislative - City Council - Dept. 02 .................................................................. 36 Judicial - Municipal Court - Dept. 03 ................................................................. 38 Administration / Finance / Legal / ITS - Dept. 04 .............................................. 44 Police - Dept. 06 ................................................................................................ 58 Community Development - Planning - Dept. 14 ............................................... 65 Community Development - Building & Fire Safety - Dept. 14 ........................... 72 Public Works - Dept. 15 .................................................................................... 77 Parks - Dept. 15 ................................................................................................ 83 City Buildings - Dept. 16……………………………………………………… ……92 3. SPECIAL REVENUE FUND TYPE ..................................................................................... 96 Street Operating - Fund 101 .......................................................................................... 99 Street Capital - Fund 102 ............................................................................................. 108 Senior Services – Fund 103 ......................................................................................... 115 Pedestrian Safety – Fund 104 ..................................................................................... 116 State Drug Investigation - Fund 105 ............................................................................ 117 Federal Drug Investigation - Fund 106…………………………………………….………119 Hotel-Motel Tax - Fund 107 ......................................................................................... 121 Public Art Capital Projects - Fund 108 ......................................................................... 130 Park Development - Fund 109 ..................................................................................... 133 Civic Center Debt Reserve - Fund 110 ........................................................................ 139 Strategic Reserve - Fund 111………………………………………………………………141 Equipment Reserve - Fund 112…………………………………………………………….143 Capital Development - Fund 301 ................................................................................. 145 Capital Improvement - Fund 305 ................................................................................. 148 Impact Fee Trust - Fund 309 ...................................................................................... 151 Hospital Benefit Zone Revenue - Fund 310………………………………………………153 4. DEBT SERVICE FUND TYPE .......................................................................................... 156 Limited Tax General Obligation Bond Redemption - Fund 208 ................................... 159 2005 Bond Redemption - Fund 211 ............................................................................. 162 5. ENTERPRISE FUND TYPE ............................................................................................. 164 Water Operating - Fund 401 ........................................................................................ 167 Wastewater Operating - Fund 402 ............................................................................... 172 Shorecrest Sewer Operating Fund - Fund 403………………………………………..... 177 Utility Reserve - Fund 407........................................................................................... 180 Utility Bond Redemption - Fund 408 ............................................................................ 182 Wastewater Capital - Fund 410 ................................................................................... 186 Storm Water Operating - Fund 411 .............................................................................. 191 Storm Water Capital - Fund 412 .................................................................................. 196 Water Capital - Fund 420 ............................................................................................. 200 6. TRANSPORTATION BENEFIT DISTRICT ....................................................................... 203 Mayor’s Message On behalf of the hardworking staff and City Council of the City of Gig Harbor, I am pleased to present the 2021 Budget. We continue to be proud of the many ways in which we have served our citizens in 2020 and are eager to present our plans for the community in 2021. This year has been full of unprecedented challenges due the onset of the Covid-19 pandemic in early 2020; however, our staff and City Council have continued to operate with the primary goal of meeting the needs of our citizens in a fiscally responsible way. During this time of tremendous uncertainty, I believe that my conservative fiscal approach has served the City well. Little did we know what was in store for us but in 2020, with Council’s support, we have been able to weather many of the economic impacts resulting from the pandemic. We are keeping a close eye on the national and regional economies, but our central focus has been on the city’s financial situation, and particularly on our retail sales tax figures which account for a major source of our general fund revenues. While it is difficult to project the extent of loss of retail sales tax revenue from the pandemic’s impact on our local restaurants, bars, hotels, and other small businesses, the city is fortunate to have the presence of several big-box retail stores and strong construction activity at present, bolstering our retail sales tax revenue. We are estimating about a 5% decline in 2020 general fund revenues compared to 2019 which is considerably better than some of our neighboring communities. I also took early action in March of this year reducing current expenditures to cushion the effect of reductions in retail sales tax revenues. A city-wide hiring freeze and postponement of some capital projects allowed us to bridge some of the revenue gap. A few of the vacant positions are now being filled and some capital projects have restarted as we slowly gain some clarity on our economic situation; however, you will see in this 2021 budget that a number of this year’s scheduled staffing additions and capital projects have been rolled into next year. Despite having to close our doors to our constituents and transition many of our employees to work-from-home arrangements, the city has continued to provide vital
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