Banked Capacity 2021

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Investing in Our Trails, Parks and Streets
Our community deeply values its open space, trails, parks and streets. As a community, we are unusually rich in natural assets and beauty, but like many communities, we struggle to keep up with ongoing and deferred maintenance and the community’s desire for improved access and amenity.  Each year through the budget process we have a chance as a community to determine how to best use our limited funding.  We generally rely on functional plans– like the Transportation Improvement Plan or the PROS Plan – that received broad community input to base recommendations to City Council.  This year, we have another opportunity to consider in advance of the budget process.  It’s called banked capacity and allows us to consider levying up to $605,000 of funding for specific uses. 

 

How We Got Here – and What Banked Capacity Means
In February 2019, residents approved adding Port Townsend to East Jefferson Fire & Rescue (EJFR) fire district. EJFR now collects the dedicated Fire and EMS levies from City property taxpayers directly.  In addition to the dedicated levies, the City was subsidizing fire service through the general property tax levy.  The City no longer makes payments from the general fund for fire protection. The City agreed to suspend the collection of an equivalent amount of property taxes it would have paid EJFR from the general levy – a reduction of the City levy or a “banked capacity” of about $908,000.  An agreement with the fire district and a policy adopted by City Council spelled out an approach that allows increased levies of the banked capacity over the course of four years. For the first three years, funding is restricted to four main uses consistent with existing plans: local roads, parks and trails, the City’s housing trust fund and utility tax relief. 

In 2020, the City decided not to levy any of the possible $303,000 banked capacity given the dire COVID situation and its related impacts. Now in 2021, the City is considering whether to levy up to $605,000 in banked capacity for use in 2022.  In 2022, that “banked capacity” goes to $908,000 and stays at that level after that; the restricted use requirement sunsets in 2023. 

 

Financial Sustainability  
The City is experiencing steady increases in the cost of services while tax revenues are not keeping up. This divergence of increasing costs in excess of revenues will result in a steady erosion of services. This problem is compounded by the present need to address numerous deferred maintenance projects such as streets, city buildings, parks, and fleet in which zero revenue is currently available.  The banked capacity proposal is informed by the principles of financial sustainability so that we make progress without overextending ourselves and incurring additional costs.  It also is informed by and impacts decisions over the next few years, including the negotiation of a water agreement with the Mill, a comprehensive streets program, and a general sewer plan. Beyond those projects, it will take many years to craft and adopt sustainable solutions. We start that journey this year – stay tuned to learn more about a Financial Sustainability Task Force and how to stay engaged.

 

What to Expect 
Funding of up to $605,000 can be used to make a positive impact in our community, but given levels of need, it can only go so far.  Moreover, provided the community supports levying any of the banked capacity, the relatively small amount of funding and the fact that the City and community will face a similar decision over the next two years puts a premium on quickly delivering visible projects with tangible benefits and no hidden costs.  Drawing from the priorities of existing plans, the City is proposing a package of investments. A town-hall style event will help us all understand the approach, concepts, projects and decisions ahead. A survey and follow up events will help gain a sense of community interest and support for the proposal and at what level.  Finally, the City Manager will forward a recommendation to City Council in August for their consideration and a vote. Stay informed and involved through our Facebook page, on Engage PT and through “Brewocracy Now” on KPTZ each Thursday from 12:30-1 pm. 

 

Investment Package Proposal/Project Preview

 

Other Ways to Learn More and Engage:

 

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