Financial Reports & Documents
AUDITS
The City of Port Townsend is audited annually by the Washington State Auditor’s Office. According the State Auditor’s Office, the audit’s purpose is to “assure users of governmental financial statements that those statements are fairly presented," and to provide users with “an independent basis for relying upon management’s assertions concerning the government’s financial position, results of operations and cash flows.” The audit is a thorough process in which a State Auditor spends six to eight weeks at City Hall inspecting records, interviewing staff, and observing and evaluating the City’s financial processes.
The mission of the Washington State Auditor’s Office is to work in cooperation with their audit clients and citizens as an advocate for government accountability. As an elected agency, the State Auditor’s Office has the necessary objective independence to perform audits and investigations. Audits comply with professional standards and federal, state, and local requirements.
BUDGETS
The City of Port Townsend strives for long-term financial sustainability to enable essential services to be provided without disruption. The budget sets the level of spending for all City funds for the entire year. Each fund has corresponding revenue sources with restrictions on spending from both state law and City Council policy. The City’s annual budget process allows the public to weigh in on the City’s priorities through a series of public hearings and meetings, including the City Council’s decision to levy property tax increases. Financial sustainability is critical, allowing the City to meet ongoing and evolving community needs and aspirations over the long-term. Providing basic infrastructure and services that underpin a healthy natural environment, meaningful economic development, and a high quality of life for residents means carefully balancing the community’s ability to generate revenues and to match the cost of services and obligations over the long term.
Learn more about Financial Sustainability and the budget process on the Engage PT Budget page and Engage PT Financial Sustainability page. Read the City Manager's letter to the Community in the 2024 City Budget and view the 2024 Budget in Brief.
POLICIES
The City of Port Townsend is accountable to its citizens for the use of public funds. Municipal resources must be wisely used to ensure adequate funding for services, public facilities and infrastructure needed to meet the community’s present and future needs. These policies are designed to help safeguard the fiscal stability required to achieve the City’s goals and objectives.
The City’s Comprehensive Financial Policies have the following objectives:
• To guide the City Council and management policy decisions that have significant financial impact.
• To set forth operating principles which minimize the cost of government and financial risk to the City.
• To employ balanced, consistent and fair revenue policies that provide adequate funding for desired programs.
• To promote sound financial management by providing accurate and timely information on the City’s financial condition.
• To protect the City’s credit rating and provide for adequate resources to meet the provision of the City’s debt obligations for all municipal debt.
• To ensure the legal use of financial resources through an effective system of internal controls.
RATES
The City of Port Townsend takes pride in operating and maintaining its state of the art water and sewer treatment facilities and complex stormwater drainage system. The City bills customers for water, wastewater, and storm drainage, though account services may vary based on property location and meter size.
