Sequim city councilors have opted to cap municipal funding contracts in 2026 at 1.5% of the city’s General Fund.

The decision follows a city staff report that from 2015 to 2025, the Municipal Funding Program has grown 220% from $80,000 to $255,600 a year.

Executive Assistant Merrin Packer said at the June 9 city council meeting that in comparison with six other cities of various sizes, Sequim is budgeted to award 2% this year while those other cities are contracting out for Municipal Funds at 1 to 1.5% of their General Funds.

Sequim’s Municipal Funding Program, according to city documents, aims to address 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.

Councilors unanimously agreed on June 9 for staff to bring back funding guidelines to the June 23 city council meeting’s consent agenda.

For this year’s city budget, $220,600, or 1.2% of the city’s General Fund budget, will go to Municipal Awards, including to the Sequim Health & Housing Collaborative (a group of local agencies working together) contracted for $142,000 for services, plus a $12,000 administrative fee for the Olympic Peninsula YMCA to support the collaborative.

With an additional $30,000 to pay part of the salary for Sequim School District’s school resource officer, this brings the total for Municipal Awards to $250,600, or 2% of the city’s General Fund, city staff report.

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’re in year one of a two-year contract.

Sequim only has two applicants for two-year contracts while the rest are one-year contracts, Packer said.

City documents state that staff have created online applications, standardized reporting requirements, updated guidelines, established key policy decisions from council, and are tracking data. However, Packer said they’ve had to follow up many times with agencies asking if they’re going to apply.

City staff are no longer accepting any late applications for Municipal Funding, Packer said.

Deadlines

Staff recommended moving up the application deadline to mid-June from September so they could better prepare the annual budget. They also suggested sending out one public reminder rather than reaching out to past applicants individually.

City councilor Harmony Rutter recommended staff share public reminders at the beginning of the New Year, in the middle, and towards the end of the city’s deadline.

“I think there is a middle ground,” she said. “We’re dealing with nonprofits that are under-resourced (and) folks who are under-resourced are always scrambling for time and energy.”

She also said the time between applying and receiving a grant is too long.

Councilor Vicki Lowe said “applying for a grant in June and getting the money in January is very out of the ordinary … Small nonprofits may not know how much they need until closer (to deadline).”

She said the grants/contracts they provide are “public health and safety issues” and all important.

Deputy Mayor Rachel Anderson shared a concern about negatively impacting the community by moving up the deadline.

By agreeing to a cap for Municipal Funding, City Manager Matt Huish said they could push the deadline for applications to sometime in July.

To help agencies with deadlines, councilor Nicole Hartman recommended submitting announcements to the Sequim-Dungeness Valley Chamber of Commerce, and Rutter wanted a press release sent out in addition to announcements on the city’s website and in its newsletter.

Councilors also requested that city staff present to them about the applicants and that they be in full agreement about who receives the funds.

Hartman said she understands why city staff would want a cap for budgeting purposes, but she didn’t want to go below 1.5% of the General Fund.

“I feel like we’re going to see an increase in need,” she said.

Applications require agencies to share their goals, deliverables, evidence, expenses, personal time, and more.

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