City cap for Municipal Fund comes in at about half of requests

Final decision on contracts decided in November

After setting a cap in June for the City of Sequim’s Municipal Funding Program for 2026, city councilors agreed to a total set for just under half of requests made.

A majority of councilors agreed in a “thumbs up” vote during an Aug. 11 work session, with Mayor Brandon Janisse excused, to $207,700 in contracts, or 1.5% of the city’s $14 million anticipated general fund.

City staff reported that eight applicants made $409,616 in requests classified in two areas: broad public benefit (six applicants) and human services (two applicants).

City Attorney Kristina Nelson-Gross said the contract decisions won’t be final until the council passes the 2026 budget in November.

Councilors expressed the difficulty of choosing funding amounts, and their priorities, including health and human services, housing, children, and seniors.

Councilor Dan Butler said while making his priority list, he considered how impacts from federal and state cuts could possibly be back-filled by the council.

Tentative contracts

Councilors agreed to tentative 2026 contracts with these agencies/groups:

• Sequim Health and Housing Collaborative (SHHC) for $120,000 (of a $151,250 request) each year for two years to expand access to shelter options while creating pathways to housing, increase access to basic needs like food and healthcare, and expand outreach services and establish a dedicated service hub.

• Olympic Peninsula YMCA for $28,750 (of a $42,500 request) for one year to continue the YMCA Youth & Family Resource Navigator (YFRN) within the Sequim School District to help students and families with housing, food, and/or financial insecurity to access basic community resources while building connections with the school district and community agencies.

Staff note that funds for the program this year came from the city’s Rainy Day Fund.

• Boys & Girls Clubs of the Olympic Peninsula for $28,750 (of a $30,000 request) for one year to help children gain homework help and caring adult support; help children build character, leadership and serve their community; and gain skills to lead healthy lifestyles and build lifelong nutrition, fitness, and social-emotional well-being.

• Sequim Farmers and Artisans Market for $10,000 (of $47,900) for two years to grow food access via SNAP redemptions; host weekly free cultural and educational market events; and support vendors with consistent sales opportunities.

• Economic Development Council for $10,000 (of $35,000) for one year to purchase APEX Accelerator Procurement services; work on business retention and expansion, startup support, marketing, recruitment, export assistance, manufacturing support, and no-cost business advising and training; and connecting college and high school students to business owners through career and technical education (CTE) and college programs.

• Shipley Center for $10,000 (of $15,000) for one year to provide physical and mental health improvements among seniors and the community at large; offer low-cost recreational activities; and offer low-cost educational classes and seminars.

Not funded

Councilors did not agree to contract funds with KSQM for $54,500 for two years each to help upgrade a transmitter to high definition, purchase and install new antennas, and upgrade tower internet and network infrastructure. They also did not approve a two-year contract for $33,466 with Olympic Theater Arts to engage community involvement in the production of theater, grant access to the arts for all income levels, and to decrease reliance on private contributions from the community.

During discussions, most councilors opted not to include the two agencies as they wanted to prioritize health and human services and housing.

“We’re saying what we can fund, not saying these other things are not important,” said councilor Vicki Lowe to fellow councilor Harmony Rutter while emphasizing how hard the decision was to choose funding.

“I’d love to give OTA money, but I don’t think this is appropriate,” she said.

“(With) KSQM, I’m hoping they can find it elsewhere. Hope they can understand why I chose the more human things.”

Councilor Kelly Burger said he didn’t include the Sequim Health and Housing Collaborative in his list of funding because he felt their application needed more information about how funds were being used.

Deputy Mayor Rachel Anderson said she hoped in their next report they’d be clearer.

The SHHC formed in 2018 after a Human Services Summit to better address community needs. Agency leaders signed a three-year, $75,000-per-year contract with the city that year and six local nonprofits continue to meet and assist the city in responding to substance use disorder, homelessness, mental illness and food insecurity in the community, according to past applications.

“When I read the report, I see all the lives that were touched,” Lowe said.

Cap

In June, councilors agreed to the Municipal Funding cap after staff showed a report that from 2015 to 2025, the Municipal Funding Program grew 220% from $80,000 to $255,600 a year.

Executive Assistant Merrin Packer said then that comparable cities budget 1 to 1.5% of their General Funds. For this year’s city budget, $220,600, or 1.2% of the city’s general fund budget.

Hartman said in June she didn’t want to go below 1.5% of the general fund due to pressures being put on agencies due to cuts.

Sequim’s Municipal Funding Program, per city documents, addresses community needs and public interests by awarding funds through an application process for human services for the poor and infirm, economic development for disadvantaged communities or neglected areas, minor financial relief to small businesses during a declared emergency, and recreational opportunities with broad public appeal.

Packer said each year, applicants can request a one-time lump sum under $10,000 for reimbursal, or a one-year, or two-year contract. Agencies must reapply unless they are in year one of a two-year contract.

For more information about Municipal Funding in the City of Sequim, visit sequimwa.gov.