Utility rate increases and reallocating staff across departments are part of the City of Sequim’s proposed $30 million budget for 2017.

City Manager Charlie Bush said priorities for the Sequim City Council include considering a 1-percent tax levy increase, various capital projects and a proposed water utility rate increase of 2 percent.

Bush and administrative services director Sue Hagener presented an overview of the budget on Sept. 26.

The 2016 budget totaled $28.1 million and included 3-percent water and 2.5-percent sewer increases totaling about $2.84 more a month for average users.

Bush suggested a 2-percent increase for water services but no increase for sewer rates in 2017.

In his budget message, he stated the water increase is needed because it’s “important to maintain the financial health of our utility operations and to meet our current and future debt service requirements, while also maintaining our target reserve levels.”

Rate increases in recent years have been based on a 2013 study suggesting a 4-percent increase to water and sewer over six years.

Hagener said the city plans to continue its low-income discount for in-need families who apply and qualify.

Hagener said city revenues are up this year leading to an approximated 5 percent proposed increase in the 2017 general fund from this year at about $239,000.

Of the city’s projected $30 million budget, capital projects make up 22 percent, or $6.6 million, with $1.6 million set for street projects, $539,000 to park projects, $2.3 million to water projects, $1.7 million to sewer projects and about $68,000 to facilities.

The Transportation Benefit District is budgeted for about $255,000 worth of projects next year, too, with $104,000 proposed for pavement rehabilitation, $71,000 to constructing a Third Avenue bike lane from U.S. Highway 101 to Fir Street and various other projects.

Bush said city staff will continue to analyze city councilors’ goals each budget season and in 2017 the city will be two years away from fully funding equipment reserves.

“For a small city, it’s really a big accomplishment,” he said. “It’ll make us that much more sustainable and able to deliver higher quality services.”

Staffing

City administrators propose increasing staffing in 2017 by 1.24 full-time employees to 76.78, which Hagener said is a result of reallocating staff and sharing resources.

They’ve proposed creating a few new positions, including a Department of Community Development specialist and part-time temporary project manager.

Police Chief Bill Dickinson may shift from 0.92 to full-time (1.0), Hagener said as they prepare for his and possibly others’ retirements.

Hagener said they’ve proposed reallocating several positions, which results in a change of less than half of a full-time position resulting in the net increase of 1.24 FTE.

Total staff salaries come to $5.4 million and $2.4 million for benefits with an expected overall wages increase of 1.4 percent and benefits up 3.5 percent.

Included in the salary increases are planned raises for the non-uniformed bargaining unit at a ¾- percent increase, police sergeants at a 2-percent increase, police officers at a 1-percent increase and non-represented staff at a 1.5-percent increase.

Other proposals

• City staff plan to continue contracts with different agencies such as $80,100 with the Sequim-Dungeness Valley Chamber of Commerce’s Visitor Information Center from lodging tax funds, $75,000 for human services contracts such as with the Sequim Boys & Girls Club, and $30,000 for the YMCA of Sequim (parks restricted funds).

• The city plans to continue paying off its debt at $665,000 for the Civic Center’s construction.

• City staff propose raising general facility charges by $250.

• All service-related fees are proposed to increase by 2-percent but rental fees are encouraged to go down to promote use.

For those in need of help, the city plans to continue its low-income discount for utilities. Applications are available through the Sequim Civic Center, DSHS, Sequim Community Aid, St. Vincent de Paul, Serenity House, United Way, Shipley Center and on the city’s website at www.sequimwa.gov. For more information, call 683-4139.

City staff plan to cover the departmental budgets on Mondays, Oct. 10 and Oct. 24, with public hearings set for Nov. 14 and Nov. 28 with city councilors tentatively adopting the budget at the last hearing.

For more information, visit www.sequimwa.gov or call 683-4139.

Reach Matthew Nash at mnash@sequimgazette.com.