Community Government

City revenue up, expenses down as council begins mulling the next budget

Gig Harbor Finance Director Dave Rodenbach told the city council this week that total city revenues are 86% of biennial budget estimates, while expenditures are at 58%.

General fund revenue is about $1.5 million above budget estimates and expenditures are approximately $3 million below.

The city took in 87% of what it expected in sales tax revenue so far this year. Property tax revenue is at 77% of what the city projected.

Building permit fees are slightly higher than in 2023, but still significantly below 2021 and 2022 revenues.

The city warned earlier this year of a looming budget crisis, projecting a $3 million deficit next year. Officials took several steps to turn things around, and consequently things are “looking pretty good” now, Rodenbach said.

Voters approved a sales tax increase to fund public safety measures in August. In September, the council approved an increase in amount of sales tax collected through the city’s Transportation Benefit District.

Previously, city voters rejected a property tax proposal in April.

The new revenues won’t kick in until January. In the meantime, the city did not hire to fill several staff vacancies. It also put off about 20 planned projects – including parks, public works and street maintenance projects — until 2025 or 2026.

City staff met with council members in two study sessions this week to discuss next year’s budget. The council will finalize and approve the budget in November.

Work resumes on Crescent Creek plan

After a year-long pause, work has resumed on a master plan for Crescent Creek Park.

The council put the planning process on hold in 2023 so a citizens group could create a proposal to save and renovate the Masonic Lodge building, located next to the park.

At the Oct. 28 meeting, the council approved an amendment to the Crescent Creek master plan contract with Hough Beck & Baird of Seattle, to cover additional work and price increases incurred during the hiatus. The master plan does not include the Masonic Lodge, just the area from the parking lot to Crescent Creek.

Planning and painting

Gig Harbor is a step closer to having a stormwater decant facility after the city council approved a contract for design of such a facility.

A decant facility processes refuse from the city’s stormwater system. Currently, the city trucks the material to a facility in Port Orchard. That’s expensive and time-consuming, Public Works Director Jeff Langhelm said.

The new decant tank will be located at the city’s maintenance and operations building on Skansie Avenue.

The $342,000 contract with Gray & Osborn Inc. of Seattle also calls for design of a lift station to pump the liquid discharge into the sewer line near the ops building. The contract also covers design of a heated garage for some city-owned equipment and other tasks related to the project.

The city plans to apply for funding from the state Department of Ecology to help pay for the project, Langhelm said. Funding will also come from the Pierce County Flood Control District. The city has been paying into the district’s fund for about eight years, but has never used any of its share of the money pool, he said.

The council also approved a $766,329 contract with Coatings Unlimited to repaint the city’s Shurgard water tank located between Highway 16 and Soundview Drive. The tank was last painted in 2003.