More funding for capital projects and health and human service contracts highlight some of the changes in the City of Sequim’s 2023 budget.
Sequim city councilors approved the estimated $44.82 million budget with a 6-0 vote on Nov. 28; mayor Tom Ferrell was excused from the meeting.
On par with past council discussions at budget season, funding for health and human service contracts was one of the top topics of discussion by councilors. Earlier this year, councilor Lowell Rathbun asked for an increase of $250,000 for The Health and Housing Collaborative (six local nonprofits) to help with local issues such as homelessness.
While Rathbun didn’t get a majority of support for that increase, councilors did agree to a $100,000 from the standard $75,000 allotment.
Some of the other new or expanded service contracts include: $95,580 for Sequim-Dungeness Valley Chamber of Commerce Visitor Information Center; $30,000 for the Boys & Girls Club of the Olympic Peninsula; $30,000 for the Economic Development Council; $15,000 for the Shipley Center, and $8,000 for Sequim School District’s Care Closet program.
Mary Budke, executive director of the Boys & Girls Clubs of the Olympic Peninsula, was the lone commenter at the second budget public hearing on Nov. 28, saying the additional $10,000 in increased funding will go to club scholarships for in-need children in 2023.
Streets, capital projects
City staff look to finish uncompleted capital projects put on hold during the COVID-19 pandemic by increasing project budgets to about $14.9 million next year.
A few of the many notable street projects include:
• Fill a 3,000-foot gap in sidewalk on the west side of Sequim Avenue ($2.15 million)
• Rehabilitate pavement on North Sequim Avenue ($1 million)
• Replace traffic signal control cabinets at Washington Street and Third Avenue ($550,000)
• Complete North Ninth Avenue from Brackett Road to Hendrickson Road ($300,000)
• General citywide pavement rehabilitation ($150,000)
A few other notable projects include: new playground equipment in Carrie Blake Community Park and Margaret Kirner Park ($250,000); a Happy Valley stormwater diversion project that captures stormwater from the Burnt Hill area to help alleviate flooding inside city limits ($492,000), and starting installation of an automatic utility meter reading system ($500,000).
Some of the capital improvements are developer and grant dependent, such as sizable water and sewer development, staff reported. That includes a $1.2 million water main extension along West Sequim Bay Road for PNNL-Sequim.
Design work for a $30-plus million new city shop is anticipated to be funded with American Rescue Plan Act funds (about $2.135 million). Councilors approved use of these funds in August with about $750,000 going to city building technology upgrades, $125,000 for second floor improvements in the Civic Center, and about $1.26 million to the shop.
On Nov. 28, councilors voted 6-0 — with Ferrell excused from the meeting — to year-end budget amendments that include about $600,000 in excess general fund revenues (over a certain policy amount) that could go to other projects and debt.
Sue Hagener, director of administrative services, said that funds could go to the city shop project, and that the city’s Rainy Day Fund has about $1.5 million in it that could go to other things, such as the Sequim School District’s proposed Career and Technical Education (CTE) building, if councilors wanted.
City manager Matt Huish said the city shop has an estimated cost of $30-$35 million, and staff hope to receive grants for it and use available excess city funds for it.
Huish added that the city in 2023 will also be able to begin further paying down its 30-year bond on the Sequim Civic Center, and that the excess general funds could go toward that.
City staff budgeted $700,000 toward payment of the bond in 2023, according to budget documents.
Utilities
As part of the annual budget process, councilors voted on updated rates and fees for 2023-2025 that will include 3-percent utility increases for water and sewer users.
At their previous meeting on Nov. 14, councilors voted 5-1 for the increases — with Mayor Tom Ferrell opposed and Armacost excused from the meeting.
Ferrell said he was opposed to the 3-percent increases for three years because of uncertainties from year to year. However, Hagener said the city would still review utility rates each year.
Councilors did not raise utility rates in 2020 or 2021 because of COVID-19’s impact on residents, and city staff said they didn’t fund debt reserves and water/sewer capital projects.
A low income utility rate discount is available at sequimwa.gov/440/Low-Income-Utility-Discount.
Also at the Nov. 14 council meeting, councilors voted 5-1 — with deputy mayor Brandon Janisse opposed — for a 1-percent allowable property tax increase annually through 2025.
As for staffing next year, Sequim adds about three full-time employees next year (92.07 total) for temporary staffing while maintaining police services (20 full-time officers). City documents state salary and benefits go from $10.9 million in 2022 to $11.6 million in 2023.
For more about the Sequim budget, visit sequimwa.gov/1051/2023-Proposed-Budget.
