Community Government

Gig Harbor city finances healthy despite dip in development revenues

Although sales tax revenue and construction permit fees are down, the city’s general fund balance is still in good shape, Finance Director Dave Roednbach told the Gig Harbor City Council on Monday, July 24.

“The city is running really well,” Rodenbach said.

But development revenues have “fallen off the table. We’re, like, 30% of where we want to be with building permits and those type revenues; we’re 70% down on, like, traffic impact fees. But we’re holding our own — we’ve been able to reallocate and do all the capital projects because of the large beginning fund balances we’ve had in some of our special funds that are dedicated to capital projects.

“So nothing service-wise or function-wise or programmatically has fallen off the table,” he said. “The year began with an almost $8 million general fund balance.”

The second-quarter report is similar to Rodenbach’s first-quarter report.  He’ll give the council monthly updates for the rest of 2023.

Other business

• The council approved a five-year extension for Gig Harbor Peninsula FISH Food Bank to decide how it might want to use a two-parcel at the end of Hunt Street west side Highway 16. In December 2018, the city conveyed the property (from Pierce Transit) to help FISH provide food bank services. Since then, FISH built a new headquarters on Burnham Drive. It may use the Hunt Street property for a warehouse or other function.
• The council voted unanimously to support Gig Harbor Fire and Medic One’s levy renewal request, which is before voters on the Tuesday, Aug. 1, ballot. The proposition would restore the fire district’s regular property tax levy to the previous voter-approved rate of $1.50 per $1,000 of assessed value for collection in 2024, and permit  annual revenue increases of up to 6% for each of the succeeding five years (but never to exceed the $1.50 per $1,000 rate limit).

The council meets next on Monday, Aug. 14.