On the agenda: Gig Harbor City Council Study Session — data center (Oct 8)

AGENDA
GIG HARBOR CITY COUNCIL STUDY SESSION
Thursday, October 8, 2026 - 1:00 PM
Community Rooms
This meeting may also be accessed through Zoom at https://zoom.us/j/93216056382 or
by calling (253) 215-8782 and entering Meeting ID 932 1605 6382.
CALL TO ORDER/ROLL CALL
DISCUSSION ITEMS
1.

Human Resources

2.

Public Works Overview

3.

Engineering

4.

Capital Improvement Projects

5.

Operations

6.

Streets

7.

Storm

8.

Parks

9.

Water

10. Sewer
ADJOURN

PUBLIC COMMENT & DECORUM
PUBLIC COMMENT & DECORUM
The city council wants to hear from the public as much as possible. However, the
business of the city must proceed in an orderly, timely manner. The primary purpose of
council meetings is to conduct the city's business so we have created a variety of ways
the community can make their voices heard. Monday city council meetings are just one
opportunity. These guidelines are designed to make sure every person who wants to be
heard has both the opportunity to be heard and feels welcome to do so.
We receive comments three ways:

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1. During council meetings
2. During council study sessions.
3. Email [email protected] at any time about any issue. This
email goes to the elected officials and leadership at the city.
Public Comment at City Council Study Sessions
We welcome comment at Council study sessions following the staff report and clarifying
questions of each discussion item. Comments must be related to the discussion item at
hand.
When the mayor calls for public comment, please come forward to the table (or raise
your hand on Zoom). When it's your turn, we'll ask you to tell us your name and
connection to the issue you want to discuss. You'll then have a maximum of two
minutes to speak.
Unfortunately, this isn't a time for dialogue, but a staff person or councilmember may be
available to talk with you at a break or after the meeting.
Additional guidelines
• Anyone making "out of order" comments may be subject to removal from the
meeting.
• Please address your remarks to the city council as a body and not to any specific
individual.
• Please be courteous and not engage in derogatory remarks or insinuations.
• No demonstrations, including clapping, are allowed.
Email
You are welcome to email the mayor and councilmembers about any issue facing the
city by writing to the address above. Do remember that council sets the policy direction
while city departments execute those decisions. A series of online reporting tools might
help you resolve an issue more quickly so check them out
too: https://www.gigharborwa.gov/146/Submit
AMERICANS WITH DISABILITIES (ADA) ACCOMMODATIONS
ADA accommodations can be provided upon request. Those requiring special
accommodations should contact the city clerk at [email protected] or (253)
853-7613 at least 24 hours prior to the meeting.

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the maritime city
2027-28 Biennial Budget

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City of Gig Harbor, Washington

2027-2028 Biennial Budget

Gig Harbor Mayor and City Council
Mary Barber

Mayor

[email protected]

Loreto Tessicini

Patrick Ammann

Emily Stone

Councilmember
Position 1

Councilmember
Position 2

Councilmember
Position 3

[email protected]

[email protected]

[email protected]

Julie Martin

Ben Coronado

Le Rodenberg

Reid Ekberg

Councilmember
Position 4

Councilmember
Position 5

Councilmember
Position 6 &
Mayor Pro Tempore

Councilmember
Position 7

[email protected]

[email protected]

[email protected]

[email protected]

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City of Gig Harbor, Washington

2027-2028 Biennial Budget

Overview of the City Council and Mayor
The City of Gig Harbor is a code city, as authorized by RCW 35A, granting the city authority to govern
within the limits of state law. Gig Harbor operates under a mayor-council, or “strong-mayor,” form of
government. In this structure, the Mayor serves as the City’s chief executive, overseeing City
administration and ensuring that ordinances, policies, and state laws are effectively implemented.
Legislative authority lies with the City Council.
Mayor’s Responsibilities:
- Oversees daily City operations and manages departments through an appointed City
Administrator.
- Ensures compliance with City ordinances, codes, and state regulations.
- Directs the development of the municipal budget and presents it to the City Council for review
and adoption.
- Leads regular City Council meetings and manages meeting procedures.
- Collaborates regionally with neighboring jurisdictions, legislators, and task forces on shared
issues.
City Council Responsibilities:
The Council consists of seven part-time, nonpartisan members to serve four-year terms. Major
responsibilities include:
- Enacting ordinances, resolutions, and motions that govern the city.
- Establishing policy direction and approving the City’s biennial budget.
- Participating in study sessions to examine City issues, policies, and other matters in greater
detail outside of regular council meetings.
- Confirming mayoral appointments to advisory boards and commissions.
- Exercising legislative oversight to ensure transparency and accountability in City operations.
Together, the Mayor and City Council provide unified leadership, working to ensure that municipal
decisions are transparent, balanced, and in the public’s interest.

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City of Gig Harbor, Washington

2027-2028 Biennial Budget

Boards and Commissions
Gig Harbor’s boards and commissions provide specialized guidance that supports effective
governance. Members contribute subject-matter expertise, review proposals, and advise the Mayor
and City Council on key policy areas. Collectively, they enhance public participation and help ensure
City decisions reflect community values
Arts Commission
Seven members, serving staggered three-year terms, advise on cultural and artistic initiatives. The
Commission adopts its own procedures, holds public meetings, encourages arts programs, seeks
grants and donations, and reports regularly to the City Council.
-

Art Commission Members:
Sonja Johnson, Chair
Carolyn Vranjes, Vice Chair
Deborah Breneman
Suzanne Gillman

-

Kris Robinson
Robin Avni
Nora Eckstein

Civil Service Commission
The Civil Service Commission is composed of three members serving staggered six-year terms.
Members are responsible for overseeing the City’s civil service system for fully commissioned police
officers, including administering competitive examinations, maintaining eligibility lists, and conducting
investigations or hearings related to appointments, promotions, and disciplinary actions. The
Commission meets regularly, maintains official records, and ensures that civil service appointments
and processes follow merit-based standards and comply with City code requirements.
-

Civil Service Commission Members:
Charles Perry, Chair
David Steingraber, Vice Chair
Larry Bleich

Historic Preservation Commission
Four members, serving staggered three-year terms, provide expertise in history, architecture,
archaeology, planning, and related fields. The Commission reviews nominations for the City’s
Register of Historic Places, evaluates proposed alterations, advises the City Council on preservation
matters, and serves as the local review board for special property valuation.
-

Historic Preservation Commission Members:
Jon Ashlock
Guy Hoppen
Gina Brais
Stephanie Lile

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City of Gig Harbor, Washington

2027-2028 Biennial Budget

Parks Commission
The Parks Commission includes seven members serving three-year terms. The Commission advises
the Mayor and City Council on parks and recreation planning, open space acquisition, facility
development and maintenance, and the operation of recreational programs. It also reviews proposed
budgets for parks and recreation, collaborates with regional partners, and recommends policies to
support the effective use of Gig Harbor’s parks and recreational facilities.
-

Parks Commission Members:
Louise Tieman, Chair
Hanley Bonynge, Vice Chair
Andrew Peabody
Kim Anderson

-

Guy Magnus
Stace Gordon
Larry Johns

Planning Commission
The Planning Commission is made up of seven members serving staggered four-year terms. The
Commission advises the City on land use planning, development policies, and long-range growth
strategies, providing recommendations that support orderly development and reflect community
needs. Members continue to serve until successors are appointed, ensuring continuity in the City’s
planning efforts.
-

Planning Commission Members:
Mark Burcar, Chair
Katy Cornell
Kim Anderson

-

Jim Henderson
Rosey Zhou
Brent Wozniak

Salary Commission
The Salary Commission is a five-member body with staggered three-year terms. The Commission is
responsible for reviewing and setting the salaries of the Mayor and City Council in accordance with
state law, including wage and benefit levels. By assigning this responsibility to an independent
commission, salary increases may take effect during an elected official's current term without the
timing restrictions that apply when officials establish their own compensation. The commission meets
in even-numbered years to consider salary adjustments, adopt rules of procedure, maintain public
records, and files updated salary schedules with the City Clerk, which become effective without
further Council action unless challenged through referendum.
-

The members include:
Kim Anderson, Chair
Larry Bradbury
Shane Kennedy
Kris Ballerini
John Petraitis

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City of Gig Harbor, Washington

2027-2028 Biennial Budget

Design Review Board
The Design Review Board is composed of five members serving staggered three-year terms. The
Board interprets and applies the City’s adopted design manual, reviews development proposals for
consistency with design standards, and provides recommendations to ensure projects support Gig
Harbor’s visual character and small-town identity. It also advises the Planning Commission and City
Council on design policies, code updates, and standards that influence the City’s built environment.
-

Design Review Board Members:
Darrin Filand, Chair
Jon Ashlock, Vice Chair
Dean Wilder
Kristine Isberg
Hugh Hochberg

Lodging Tax Advisory Committee (LTAC)
The Lodging Tax Advisory Committee consists of nine voting members. Membership includes one
City elected official who serves as chair, four representatives from businesses that collect lodging
taxes, and four members representing organizations eligible to receive lodging tax funding, with
preference given to City residents. Members serve staggered three-year terms. The Committee
reviews and provides recommendations on proposed lodging tax changes, evaluates how proposals
support tourism and long-term fund stability, and advises the City Council on applications for lodging
tax funding. Its recommendations guide decisions on tourism promotion and tourism-related facility
projects.
LTAC Members:
- Councilmember Ben Coronado, Chair
- Sue Braaten
- Jannae Mitton
- Kara Sandvik
- Patsy Irwin

-

Clare Dunis
Lindsey Stover
Stephanie Lile
Miriam Battson

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City of Gig Harbor, Washington
Biennial Budget

2027-2028

Table of Contents
Contents

Introduction .................................................................................................................................1
Readers’ Guide ...................................................................................................................... 1
Mayor’s Budget Message ....................................................................................................... 2
The City of Gig Harbor Overview ............................................................................................ 5
City Statistics .......................................................................................................................... 6
Strategic Plan ......................................................................................................................... 9
Workforce ..............................................................................................................................11
Budget Definitions .................................................................................................................16
The Budget Development Process ........................................................................................19
Financial Policies & Strategy Framework...............................................................................21
Cost Allocation and Internal Service Charges ........................................................................22
Budget Overview.......................................................................................................................23
Revenues ..............................................................................................................................24
Major Expenditures................................................................................................................37
Debt and Long-Term Obligations ...........................................................................................39
General Fund ............................................................................................................................43
General Fund Summary and Overview ..................................................................................43
Legislative – City Council.......................................................................................................45
Municipal Court .....................................................................................................................46
Administration........................................................................................................................48
Human Resources .................................................................................................................50
City Clerk...............................................................................................................................52
Information Technology Services...........................................................................................54
Housing, Health, and Human Services ..................................................................................56
Communications and Community Relations ..........................................................................58
Finance .................................................................................................................................60
Police ....................................................................................................................................62
Community Development – Planning / Building .....................................................................64
Parks .....................................................................................................................................67
City Buildings.........................................................................................................................70

Table of Contents

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City of Gig Harbor, Washington
Biennial Budget

2027-2028

Public Works .............................................................................................................................72
Public Works – Administration ...............................................................................................73
Public Works – Engineering...................................................................................................75
Fleet and Equipment Operating - Fund 502 ...........................................................................77
Special Revenue Fund Type .....................................................................................................78
Street Operating - Fund 101 ..................................................................................................79
Street Capital – Fund 102 ......................................................................................................81
Senior Services – Fund 103 ..................................................................................................82
Pedestrian Safety – Fund 104 ...............................................................................................83
State Drug Investigation - Fund 105 ......................................................................................84
Federal Drug Investigation - Fund 106...................................................................................85
Hotel-Motel Tax - Fund 107 ...................................................................................................86
Public Art Capital Projects - Fund 108 ...................................................................................87
Park Development - Fund 109 ...............................................................................................88
Strategic Reserve - Fund 111 ................................................................................................90
Equipment Reserve - Fund 112 .............................................................................................91
City Building Capital – Fund 121............................................................................................92
Capital Development / REET 1- Fund 301 .............................................................................93
Capital Improvement / REET 2- Fund 305 .............................................................................94
Impact Fee Trust - Fund 309 .................................................................................................95
Hospital Benefit Zone Revenue - Fund 310 ...........................................................................96
Transportation Benefit District – Fund 650.............................................................................97
Debt Service Fund Type ...........................................................................................................98
LTGO Bond - Fund 208 .........................................................................................................99
Enterprise Fund Type..............................................................................................................100
Water Operating - Fund 401 ................................................................................................101
Wastewater Operating - Fund 402 .......................................................................................104
Shorecrest Sewer Operating Fund - Fund 403 ....................................................................107
Utility Reserve - Fund 407 ...................................................................................................109
Utility Bond Redemption - Fund 408 ....................................................................................110
Wastewater Capital - Fund 410 ...........................................................................................111
Stormwater Operating - Fund 411 .......................................................................................112
Stormwater Capital - Fund 412 ............................................................................................114

Table of Contents

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City of Gig Harbor, Washington
Biennial Budget

2027-2028

Water Capital - Fund 420.....................................................................................................115
Capital Improvement Program ................................................................................................ 116
Appendix A – Capital Improvement Plan (CIP) ........................................................................ ..A
Appendix B - Ordinance .......................................................................................................... ..B

Table of Contents

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City of Gig Harbor, Washington

2027-2028 Biennial Budget

Introduction
Readers’ Guide

The City of Gig Harbor’s Biennial Budget serves as the City’s financial plan and legal
authority to obligate public funds for the upcoming two-year period. More than a
financial document, it reflects the city council’s strategic direction by outlining how public
resources will be invested to provide essential services to meet the needs of the
community.
This budget is designed to provide transparency, accountability, and public
understanding by clearly communicating how financial resources support the programs
and services that contribute to Gig Harbor’s quality of life. It is intended for a wide range
of audiences, including residents, elected officials, and City staff responsible for
implementing the budget.
How the Budget is Organized
Preparing the biennial budget is a collective effort involving every city department. The
result is a comprehensive financial plan that aligns city resources with the community’s
values and vision in a fiscally responsible manner. The budgeting process entails
multiple funds, financial policies, accounting standards, and legal requirements, where
the information may be unfamiliar to some readers. The budget is organized into several
sections to help readers understand the City's financial plan and navigate the document:
-

The introduction provides background on Gig Harbor, the City's strategic
direction, workforce, and other information that provides context for the budget.

-

The budget development portion outlines key budget terminology, the budget
development process, financial policies, and other practices that guide
preparation and management of the City's budget.

-

The budget Overview segment provides a City-wide summary of the 2027–2028
financial plan, including revenues, major expenditures, transfers, and debt and
long-term obligations.

-

General Fund and Public Works sections provide information on the programs,
services, priorities, and budgets of City departments and operating areas.

-

Other Funds present the City's special revenue, debt service, and enterprise
funds and describe the resources and expenditures allied with their spurposes.

-

Capital Improvement Program summarizes planned investments in major
infrastructure and capital projects.

-

Appendix provides supporting financial schedules and other detailed information.

Introduction

1

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Mayor’s Budget Message
September 21, 2026

Dear Councilmembers,
It is with great pride that I present to you the City of Gig Harbor budget for the 20272028 biennium. Our professional team worked hard to develop this balanced budget
for the community as a representation of our community priorities. The city is in a solid
financial position because of the focused work our administration has done during
the past several years to make sure we remain there. By planning ahead to stretch
resources while facing diminishing revenues, the team made sure we can continue
providing a high level of service to our community and support the Council’s priorities:
economic vitality, diverse and affordable housing, and community connections.
During the biennium ending December 31, 2026, we accomplished a lot:
-

Fully staffed and accredited police department; hired a new police chief. Among
other strategies, this allowed the department to emphasize speeding infractions.
Opened Doris Heritage Park and the first phase of the Sports Complex
Completed the update to the comprehensive plan and began work on a wide
range of zone and land use changes
Secured federal permitting for the Fishermen’s Homeport
Established our first youth council who sponsored a wonderful mental health
summit
Completed two cohorts of Harbor Rising to build informal leaders into strategic
leaders

Plans for the new biennium maintain the same strategic pace. We continue to focus on
critical infrastructure improvements while using limited taxpayer dollars as
judiciously as possible. It is becoming increasingly challenging to do this as we’ve
been stretching the dollars for so long. As a result, some of the budgeted items require
grant funding to complete. A new police boat is an example of those items.
The budget also includes strategic adjustments to our staffing. Additional new
positions include a business and policy analyst, a communications associate, coresponder in Housing, Health and Human Services, an additional police officer and two
public works custodians. The budget also reclassifies the Finance Director position to

Introduction

2

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Deputy City Administrator, who will oversee the internal service departments of Finance,
Human Resources, and Information Technology.
In addition to some staff realignments, a couple budget categories are realigned so
expenses come more closely to the projects they’re funding. For example, streets
projects are taken from the Transportation Benefit District as opposed to the General
Fund. Doing so is appropriate but also points to a need to find additional long term
funding solution for street maintenance programs to maintain the level of service
currently expected by residents.
Prior to the next biennium (2029/2030), Council will need to have conversations
about managing level of service expectations with the available resources.
Although we have been skillful with how we’ve managed funds to keep services, we
can’t continue to provide the expected level of service without additional revenue.
The new budget includes some new or expanded initiatives in addition to the fulltime work of running the city, keeping the water clean and infrastructure running.
Council’s expressed desire was to finish projects before bringing new ones to the
starting line, but there are still some needed, exciting initiatives to highlight:
-

Adding a co-response coordinator to the housing health and human services
team to work closely with first responders and provide even more support for
those who need help in our community.
Supporting our focus on economic vitality, the budget includes funds for an
economic development plan, the Judson subarea plan and funding for the
beginnings of a community center/event space.
Planning and design for the second phase of the Sports Complex ensures this
important project for our youth, and community economic vitality continues.
The long-awaited Fishermen’s Homeport will be completed, resulting in
increased support for our fishing community, and maritime culture.
The budget adds a permanent communications assistant demonstrating our
commitment to strengthening ties with the community and supporting Council’s
strategic priority of community connections.
Funding to update the city’s emergency management planning and complete
tabletop exercises throughout the biennium.
Information Technology continues to be an emphasis as we work to improve
secure connectivity in an ever-changing world.
There’s also funding for initial design and permitting for the long-awaited fifth
phase of the Cushman Trail.

Like the previous budget, this one also continues our strong working relationship
with community partners. Much of the work done, especially tourism marketing and
events, cannot happen without teamwork and relationships with the Chamber of
Commerce, Waterfront Alliance and many other groups. Partnerships and grants
programs like the Brandani Killilea Creative Endeavor Grants, the Lodging Tax funds
and more are critical to community success.

Introduction

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While this budget does include several new projects for the community development
department, we do want to call your attention to the inordinate amount of staff time
that is taken up developing new regulations to meet ever changing landscape of
state regulations. This puts an enormous strain on the team and means strategic
projects must be on the back table. Projects I believe are critical to our long-term
success like the Judson Sub Area Plan and the community center/gathering place are
challenging to fit into the planning timeframe.
I trust as you review this budget you will see the team has done a fabulous job
managing expectations with realities. As always, the wish list is longer than we can
accommodate. Additionally, ever escalating costs and the demands of state regulations
restrain us further, but this represents a very strong plan to move our community
forward during the next two years. When the current budget was presented to Council in
late 2024 there was a strong note of caution about the coming crunch between available
income and projects. That is even more evident today and we must discuss funding
options moving forward.
I look forward to discussing this budget with you and the community in the coming
weeks.
Sincerely,

Mary K. Barber
Mayor

Introduction

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The City of Gig Harbor Overview

Nestled along the shores of Puget Sound, the City of Gig Harbor lies just 13 miles
northwest of Tacoma and is connected by the Tacoma Narrows Bridge. The city is
known for its rich maritime heritage, scenic waterfront, and strong sense of community.
Gig Harbor blends historic character with a distinctive coastal environment, reflected in
its working harbor, charming downtown, and iconic shoreline views for residents and
visitors to enjoy.
Over the past two decades, Gig Harbor has experienced substantial growth while
continuing to preserve the qualities that have defined the community. Guided by
thoughtful planning, responsible financial stewardship, and a commitment to high-quality
public service, the City strives to support the wellbeing of residents, businesses, and
visitors. As the community evolves, the changing demographics and sustained
population growth play a central role in shaping long-term planning efforts and the
priorities reflected in the biennial budget.
Gig Harbor History
Gig Harbor’s history began long before its incorporation. For centuries, the Twa-Wal-Kut
band of the Puyallup Tribe maintained a permanent camp and longhouse along the
harbor’s shoreline. In 1840, members of the Wilkes Expedition entered the sheltered
bay in a longboat known as a “captain’s gig,” giving rise to the name Gig Harbor.
Following this early exploration, the community grew into a thriving maritime and fishing
community. Commercial fishing, boat building, and lodging formed the foundation of the
early economy, shaped significantly by the culture and influence of the Croatian and
Scandinavian immigrants which remains visible today. By the 1920s, business districts
had developed on both sides of the harbor.
However, daily life changed momentarily by the impacts of World War II. Local fishing
vessels were converted for Navy patrol duties, and a spotting tower was constructed on
Stinson Hill as part of regional coastal defense efforts. When the war concluded in 1945
and resident livelihoods began to stabilize, conversations about formally incorporating
the city moved forward and lead to Gig Harbor’s incorporation in 1946.
Gig Harbor was incorporated with approximately 800 residents.
The decision was driven by the need for reliable public
services, such as water, sewer systems, and fire protection. At
the time, the community was also relatively isolated from
surrounding areas, with residents primarily relying on ferries
and boats for travel. The opening of the Tacoma Narrows
Bridge in 1950 marked an important shift in the community’s
development by improving connectivity and supporting
population and economic growth in the decades that followed.

Introduction

Starboard side view of wooden,
diesel-powered ferry Elk leaving dock
at Gig Harbor, Washington
Courtesy Port Angeles Public Library
Washington Rural Heritage collection

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The City Today
Now home to nearly 13,000 residents, Gig Harbor
offers a diverse array of recreational, cultural, and
community amenities. Popular destinations
include the Harbor History Museum, Harbor
WildWatch, Eddon Boat Building, and the Gig
Harbor Lighthouse. More than 20 parks, public
boat launches, beaches, and water-access points
provide opportunities for kayaking,
paddleboarding, fishing, and outdoor activities
throughout the year.
The historic downtown waterfront remains the heart of the community, featuring locally
owned shops, restaurants, galleries, and gathering spaces. Annual events such as the
Maritime Gig Festival and Summer Sounds celebrate local culture and bring residents
and visitors together. Collectively, these amenities contribute to the high quality of life
that makes Gig Harbor an appealing place to live, work, and visit.

City Statistics

Demographic data provides critical context for the City’s financial planning and service
delivery. Population size, age composition, household characteristics, and geographic
factors all influence demand for municipal services and impact the decisions for
resource allocation. The following overview summarizes key community characteristics.
General Data

Population (2020 Census)
Land area (2020 Census)
Mean Travel time to Work (minutes)
Number of Parks

Governance

Introduction

12,029
5.90 Square Miles
32.3
23

Pierce County
Mayor – Council
1946
Executive, Municipal Court, Finance,
Administration, Human Resources,
Community Development, Parks, Police,
Public Works, Utilities
Services Police & Emergency Services, Code
Enforcement, Building Inspections, City
Planning, Zoning, Water & Sewer, Streets &
Storm Water, Parks & Facilities, Business
Licensing, Permit Applications, Human &
Community Services

County
Form of Government
Incorporated
Departments

6

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Over the past two decades, Gig Harbor has experienced steady and significant growth.
What was a community of just over 3,200 residents in 1990 expanded to 6,465 by 2000,
marking a period of rapid change. Growth continued in the years that followed, with the
population rising to 7,126 in 2010 and then surging to 12,029 by 2020. The 2026
estimate of 13,140 reflects this ongoing upward trend, illustrating how Gig Harbor’s
population has more than doubled since the early 2000s.
This steady increase has broadened demand for City services, including infrastructure,
parks, transportation, public safety, and utilities. To meet these evolving needs, the City
plans its development carefully, manages land use responsibly, and invests in facilities
and infrastructure that supports a growing community.
Population
Population 13,140
(2026
Estimate)
% Change 4.8%
Female 53.1%

Population Growth
15,000

12,029

10,000
5,000

3,236

Age Distribution (2020 Census)
Under 18 y/o
18-64 y/o
65 y/o and older
Median Age

Introduction

7,126

0
1990

Male 46.9%

Race (2020 Census)

13,140

6,465

White alone
Black
American Indian
Asian
Pacific Islander
Hispanic or Latino
Two or More Races

2000

2010

2020

2026
(Estimate)

Population Growth

22%
48%
31%
46.6 y/o
80.6%
0.7%
0.3%
2.5%
0.9%
5.9%
12.7%

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Housing, Income, & Education (2020 Census)
Number of Households (2020-2024) 5,299
Owner-Occupied Housing Unit Rate 62.2%
Median Value of Owner-Occupied Housing $767,000
Median Household Income $118,395
Persons in Poverty 7.0%
High school graduate or higher 96.5%
Bachelor’s degree or higher 52.1%

Introduction

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Strategic Plan

The Strategic Plan, adopted by the City Council, provides the long-term direction that
guides how the City grows, invests, and delivers public services. It reflects community
values and translates them into actionable priorities to ensure City resources support
the needs of residents today and in the years ahead.
Mission: Committed to delivering responsive leadership and sound financial
management to support safe neighborhoods, a healthy environment, and a strong local
economy
Vision Statement: To build a future where thoughtful planning, environmental
stewardship, and economic vitality strengthen and enrich our community.
Core Values: Respect. Public Safety. Integrity. Public Service. Teamwork.

Foundational Pillars

Foster a healthy city organization: Build and support professional, motivated city
staff capable of delivering exceptional public service
- Recruit, develop, and retain a talented workforce
 Invest in training, leadership development, and employee well-being
 Modernize technology and business processes
 Promote collaboration, innovation, and accountability across departments
Desired Outcome:
 Establish a highly engaged workforce
 Reduced employee turnover
 Improved operational efficiency
 Strong organizational work culture
 Deliver exceptional customer service to the public
Ensure a sustainable future for public services and facilities: Invest in long-term
civic infrastructure and maintain financial stewardship to sustain high-quality
services while protecting future flexibility.
 Prioritize capital investments in alignment with long-term community needs
 Maintain disciplined and strategic investment in public facilities
 Manage City assets, including streets, parks, and utilities, to ensure reliability
throughout their useful life
 Adopt balanced budgets
Desired Outcome:
 Infrastructure that is resilient, well-maintained, and able to serve a growing
community
 High-quality, efficient service delivery
 Strong financial stewardship that supports long-term sustainability

Introduction

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Strategic Priorities

Economic Vitality: Support a vibrant economy that creates opportunities for
businesses, residents, and visitors
 Adjust policies, permitting processes, and key regulations to remove barriers and
support effective collaboration with businesses.
 Invest in infrastructure and community assets, such as transportation and
wastewater systems, to support new businesses and redevelopment opportunities.
 Strengthening partnerships with businesses by establishing effective communication
channels.
Desired Outcome:
 Thriving business community
 Diverse tax base
 Increased investment from businesses
 Increased job creation
Housing Diversity: Expand housing opportunities to meet the needs of residents
at all stages of life.
 Meet state housing requirements to increase housing targets while maintaining local
control over implementation
 Encourage housing near transit, employment centers, and medical services to
improve accessibility and support a high quality of life.
 Support the development of duplexes, townhomes, multifamily housing, and other
diverse housing choices.
 Coordinate with housing authorities, non-profit organizations, service providers,
developers, and neighboring jurisdictions for housing investment opportunities
Desired Outcome:
 The city provides an array of options for residents to properly meet their needs.
 City achieves state mandates for housing supply and diversity.
 Increased accessibility of key services provided around town and increased use of
public transportation
 Effective collaboration and coordination with all key housing advocates and investors
Community Connections: Strengthen civic engagement from residents through
compassion, trust, and transparency.
 Establish programs that promote civic engagement between the city and residents
 Identify community values, stories, and concerns to ensure City planning and
priorities reflect the community’s voice.
Desired Outcome:
 Strong trust and confidence in the city
 Align initiatives with community values and preserve the City’s heritage and history

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Workforce

The City’s workforce provides the staffing capacity needed to deliver services and
support City operations. Since 2021, filled staffing levels have increased by
approximately 14 percent, with the most notable growth occurring in the Police
Department and Public Works/Utilities/Parks. This growth reflects changes in service
demands, capital project needs, and the staffing needed to support City programs and
infrastructure.
The table below provides a historical view of filled positions from 2021 through 2026.
These figures represent positions that were filled during each year and differ from
budgeted full-time equivalents (FTEs), which represent positions authorized and funded
through the budget, including vacant positions. Elected Officials are not included in FTE
totals.
Department

2021

2022

2023

2024

2025

2026

General Government

15.8

14.8

18.2

18.8

18.8

18.6

Community Development/
Planning

15.8

17.8

14.1

11.9

11.3

11.2

Court

3.1

3.6

3.8

3.6

3.4

3.4

Police

22.1

22.8

23.3

24.6

25.3

28.3

Public Works/ Utilities/
Parks
Total

45.5

45.0

53.7

54.5

55.0

54.7

~102

~104

~113

~113

~114

~116

Budgeted Staffing
The 2027–2028 Biennial Budget includes 132.6 budgeted FTEs, an increase of 5.0
FTEs from the 127.6 FTEs budgeted in the 2025–2026 biennium. General Government
increases by 3.0 FTEs, Police increases by 1.0 FTE, and Public Works/Utilities/Parks
increases by 1.0 FTEs. Budgeted staffing levels for Community Development/Planning
and Court remain unchanged.
Budgeted FTEs account for both filled and vacant positions, as well as part-time
positions based on their authorized staffing level. Elected officials are not included in the
FTE totals.

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Department

2025-2026 Budgeted
FTEs
22.0

2027-2028 Budgeted
FTEs
25.0

Changes

Community Development/
Planning
Court

14.0

14.0

No Change

3.6

3.6

No Change

Police

29.0

30.0

+1

Public Works/Utilities/
Parks
Total

59.0

60.0

+1

127.6

132.6

+5

General Government

+3

Personnel Changes
The 2027–2028 Biennial Budget reflects several changes to City staffing and
organizational structure, including new positions, staffing adjustments, position
reclassifications, and organizational changes. Some changes were previously approved
through budget amendments and are now fully incorporated into the biennial budget
and City structure.
New Positions and Staffing Changes
- Business and Policy Analyst – This position was added to support Citywide policy
and analytical work.
- Communications Assistant – This position is intended to support the City’s
communications functions.
- Co-Responder – New position within Housing, Health, and Human Services.
- Police Officer – Increased from 16.0 to 17.0 FTEs.
- Public Works Staffing – Two Custodian positions in Grounds & Facilities and one
Maintenance Technician for Street and Storm were added to support Public Works
operations. The Associate Development Review Engineer and Maintenance
Electrician positions were removed, resulting in a net increase of 1.0 FTE.
Position Reclassifications and Title Changes
Several positions were reclassified or retitled to reflect changes in responsibilities and
organizational structure. The proposed changes are the following:
- Finance Director to Deputy City Administrator
- Court Clerk to Court Assistant
- ITS Manager to ITS Director
The positions below were approved in prior budget amendments and are now fully
incorporated into the City’s budget and organizational framework.
- Human Resources Assistant was reclassed to Human Resources Coordinator
- Water Operator was reclassed to Water Quality Specialist
- Assistant City Clerk was reclassed to Executive Assistant
- Wastewater Superintendent was reclassed to Operations Supervisor – Wastewater
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-

Planning Technician/Building Inspector-Plans Reviewer – One Planning Technician
position was reclassified to a Building Inspector/Plans Reviewer position, reducing
Planning Technician staffing from 2.0 to 1.0 FTE and increasing Building
Inspector/Plans Reviewer staffing from 1.0 to 2.0 FTE. This change did not increase
the overall staffing level within Community Development.

Organizational Changes
- Parks was renamed to Grounds & Facilities.
- The Wastewater Division was moved under the Assistant Public Works Director
Labor Relations and Compensation Policy
The City’s workforce is primarily represented by three labor unions:
- General Unit Teamsters Local Union 117 – representing most administrative staff,
Public Works employees, and Community Development personnel. This contract
expires December 31, 2027.
- Police Teamsters Local Union 117 – representing fully commissioned uniformed
personnel, excluding the Police Chief and Police Lieutenant. The contract expired in
2025 and is undergoing renegotiation.
- Teamsters Local 313 – representing frontline supervisory roles across multiple
departments, including the Court Administrator, Principal Planner, and Public Works
Operations Supervisors. This contract expires December 31, 2027.
Non-represented employees include department directors, administrators, and other
employees not covered by collective bargaining agreements. Personnel regulations
adopted by the City Council govern these positions and establish a fair and equitable
framework for employment practices. These regulations support consistent, merit-based
decision-making and promote the employment of highly qualified individuals, recognition
of strong performance, equitable treatment, and equal opportunity across employment
practices.
Together, these principles support a workplace culture that reflects the City’s
commitment to integrity, respect, fairness, and professionalism.

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Compensation Adjustments
The City maintains competitive wages through multiple adjustment mechanisms:
- Cost -of-Living Adjustment (COLAs): Calculated annually using the
Seattle/Tacoma/Bellevue CPI-U (June-June).
- Performance Reviews: Annual performance review evaluations set the basis for
determining pay adjustments to effectively compensate for performance.
- Step Increases: Employees with satisfactory performance reviews are eligible for
step increases. Management has the flexibility to advance employees within the
salary range at the minimum or maximum rate based on documented performance.
- Health Insurance Premiums: The City covers employee premiums in full.
Employee Benefits
The City offers a comprehensive benefits package, including:
- Medical, dental, orthodontia, and vision insurance for employees and benefits
- Long-term disability
- Life insurance
Leave and Other Benefits
Employees receive access to:
- Paid holidays, vacation, sick leave, and maternity/paternity leave
- Deferred compensation plan for retirement income

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City of Gig Harbor, Washington

Introduction

2027-2028 Biennial Budget

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City of Gig Harbor, Washington

2027-2028 Biennial Budget

Budget Development

The following definitions will aid readers to understand the terminology used throughout
the budget document.

Budget Definitions

Expenditure: Costs incurred to provide City services, operate programs, and maintain
infrastructure. Expenditures are generally organized into the following categories Salaries and Wages – Wages incurred for full-time, part-time and seasonal
employees, overtime, and any additional labor costs for short-term needs.
Personnel Benefits – Cost to provide benefits to employees.
Supplies – Cost of purchasing items and small-tool equipment for daily operations.
Services – Includes the incurred cost of professional and contracted services,
utilities, insurance, and other services provided to the city from outside vendors.
Intergovernmental Charges - Payments the City makes to other governmental
agencies for required services, regulatory programs, and interlocal agreements.
These costs support activities performed by state, county, and regional entities that
the City relies on or is legally required to participate in. Examples include state audit
fees, emergency management program assessments, environmental regulatory
charges, and state-mandated court administration fees.
Capital Outlays – Expenditures for the purchase, construction, or major improvement
of long-term assets, including buildings, vehicles, equipment, technology systems,
infrastructure, and other items that have a useful life of more than one year. These
costs are typically associated with large, one-time investments that support City
operations and services.
Preliminary Budget – The preliminary budget is prepared in accordance with state law
and presented by the Mayor to the City Council for approval. It provides an overview of
every fund the City maintains, with the General Fund presented at the department level,
offering a comprehensive summary of the complete biennial budget.
Budget Ordinance - The Budget ordinance is the formal action by the City Council to
adopt (approve) the biennial budget and establish legal spending authority for each fund
as outlined. Once approved, it authorizes appropriations, affirms compliance with state
law, and sets the budget in effect for the upcoming biennium.

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City of Gig Harbor, Washington

2027-2028 Biennial Budget

Adopted Budget - The adopted budget is the formally published and filed document, as
approved by ordinance by the City Council.
The budget is composed of two parts: Operating budget & Capital budget.
Operating budget - The operating budget outlines the resources needed to
support daily services, programs, and administrative functions.
Capital Budget – The capital budget authorizes and provides the basis to use
funds for the acquisition of significant city assets, facilities, equipment, and
improvements to City-owned infrastructure.
Fund – A fund is an accounting entity used to record revenues, expenditures, activities,
and obligations that are designated for a specific purpose or objective. This separation
allows the City to manage financial resources in accordance with legal, financial, and
programmatic requirements. The fund structure ensures transparency, accountability,
and responsible stewardship of public resources across all areas of City operations.
Governmental Fund Types
- General Fund - The General fund is the primary operating fund that is not required to
be accounted for in another fund account. This fund supports daily operations and
key City functions, including administration, police, municipal court, and parks.
-

Special Revenue Funds - Special Revenue Funds account for revenues that are
restricted or committed for a specific purpose. These funds obtain revenue from
various sources, including Federal and State grants, taxes, and service fees, and
are spent only on a specific program, activity, or service.

-

Debt Service Funds - Debt Service Funds are used to accumulate resources to pay
principal, interest, and related costs on the City’s outstanding long-term debt. These
funds ensure the City meets its debt obligations on schedule and in compliance with
established bond requirements.

-

Capital & Enterprise Funds –
o Capital funds are used to account for financial resources dedicated to
acquiring, constructing, or improving capital facilities, including projects
financed through special assessments, major infrastructure improvements,
and construction activities. Revenues for capital funds typically include
federal and state grants, contributions from operating funds, and bond
proceeds. These funds support long-term investments such as streets,
parks, public buildings, utilities, and other large-scale infrastructure.

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City of Gig Harbor, Washington

2027-2028 Biennial Budget

o Enterprise funds operate like self-supporting business units and are used
to account for services provided directly to the public and funded primarily
through user fees. These funds typically support utilities such as water,
wastewater, and stormwater.

The City of Gig Harbor maintains the following fund accounts:

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City of Gig Harbor, Washington

2027-2028 Biennial Budget

The Budget Development Process

The City develops its biennial budget through a collaborative process involving City
departments, Finance, the City Administrator, the Mayor, and the City Council. The
process is designed to align available financial resources with operational needs, capital
investments, and the City’s priorities while meeting applicable state requirements.
Process Overview
The City’s biennial budget process is conducted in accordance with RCW 35A.33 and
generally includes the following steps:
1. Departmental Development – Departments begin preparing operating, staffing,
and capital requests following guidance issued during the budget kickoff.
2. Finance Review – Finance collaborates with departments to refine assumptions,
validate priorities, and complete detailed budget requests.
3. Administrative Review – The City Administrator and Finance Director review all
departmental budgets for strategic alignment and financial capacity.
4. Council Review and Public Hearings – The proposed budget is delivered to the
City Council, which conducts hearings on revenues, property taxes, and the
proposed biennial budget.
5. Budget Adoption – Following public hearings, the City Council adopts the budget
by ordinance.

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City of Gig Harbor, Washington

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Amending the budget
Following adoption, certain adjustments may be made to the budget as financial and
operational needs change. The Mayor, City Administrator and Finance Director are
authorized to transfer budget amounts between categories within funds or general fund
departments; however, any revisions that alter the total expenditures of a department or
fund, or affect the number of authorized employee positions, salary ranges, hours or
other conditions of employment, must be approved by the City Council. When the City
Council determines that it is in the best interest of the city to increase or decrease the
appropriation for a particular fund or department, it may do so by ordinance approved by
one more than the majority of the City Council after holding a public hearing.
Basis of the budget
The City prepares its budget using the modified accrual basis of accounting. Under this
method, revenues are recognized when they are measurable and available, while
expenditures are generally recognized when the related liability is incurred rather than
when payment is made.
Governmental funds use the modified accrual basis for both budgeting and financial
reporting, allowing budget information to be compared with the operating results
presented in the City’s annual financial report.
Enterprise funds are budgeted using the modified accrual basis but are reported using
the full accrual basis in the annual financial report. Under full accrual accounting,
revenues are recognized when earned, capital assets are recorded and depreciated
over time, and debt principal payments are treated as reductions in liabilities rather than
expenditures. As a result, budgeted amounts for enterprise funds are not directly
comparable to amounts presented in the annual financial report.
These accounting methods allow the City to prepare and manage its budget consistent
with state requirements while maintaining financial reporting practices consistent with
generally accepted accounting principles (GAAP).

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City of Gig Harbor, Washington

2027-2028 Biennial Budget

Financial Policies & Strategy Framework

Financial policies guide the development, implementation, and monitoring of the
biennial budget. These policies promote disciplined, transparent, and sustainable fiscal
management.
Key policies include:
- Adopting a balanced budget in which biennial revenues and fund balances meet or
exceed biennial expenditures.
-

Maintaining sufficient reserves to support stable operations and buffer against
emergencies.

-

Maintaining at least 60 days of operating expenditure in undesignated fund balance
for the General Fund and Street Operating Fund.

-

Sustaining key reserves:
o Strategic Reserve Fund – for economic downturns and unforeseen events
o Equipment Replacement Reserve Fund – for planned replacement of
vehicles and equipment

-

Updating a six-year revenue and expenditure forecast annually.

-

Using conservative revenue assumptions and recognizing additional revenues only
once realized.

-

Ensuring capital projects consider long-term operational impacts.

-

Limiting debt maturity to the useful life of financed assets.

-

Budgeting no more sales tax revenue than received in the prior year as a hedge
against economic volatility.

-

Restricting general obligation debt issuance to long-term capital investments.

-

Maintaining, preserving, and replacing public infrastructure through lifecycle
management.

-

Ensuring enterprise fund net revenues equal at least 1.5 times annual debt service
requirements.

-

Conducting regular budget monitoring to identify variances and support timely
decision-making

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City of Gig Harbor, Washington

2027-2028 Biennial Budget

Cost Allocation and Internal Service Charges

Many City services support more than one department or fund. Functions such as
finance, human resources, information technology, public works administration,
engineering, fleet, and other centralized services provide support throughout the
organization. Beginning with the 2027–2028 budget, the City more fully identifies and
allocates these shared costs to the programs and funds that benefit from those
services.
Cost allocations are intended to present a more complete picture of the cost of providing
City services and to distribute shared organizational costs in a reasonable and
consistent manner. This is particularly important for enterprise and other dedicated
funds, where the cost of administrative and support services should be reflected as part
of the cost of operating those programs. Enterprise funds are generally intended to
operate as self-supporting activities funded primarily through user charges.
Allocation methods vary depending on the nature of the service being provided. The
City uses measurable factors that reasonably reflect how services are consumed, such
as staffing levels, transaction activity, technology usage, capital project activity,
equipment usage, or other appropriate measures. The objective is not to allocate every
shared cost with exact precision, but to use a consistent and supportable method that
reasonably reflects the benefits received by each fund or program.
Amounts shown in the adopted budget represent estimates based on the best
information available during budget development. Where practical, actual charges
during the biennium will be based on actual use, activity, or costs incurred. Finance will
monitor allocations throughout the biennium and may adjust charges as operating
conditions, staffing, projects, or service usage change. Cost allocation methodologies
will also be reviewed periodically to ensure they remain reasonable and reflective of City
operations.
Cost allocations and internal service charges represent costs shared within the City;
they do not increase the City's overall cost simply because they appear as an expense
in one fund and revenue or reimbursement in another. Citywide reporting will therefore
distinguish these transactions so they can be reconciled and so that internal charges
are not mistaken for additional external spending.

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City of Gig Harbor, Washington

2027-2028 Biennial Budget

Budget Overview

The 2027–2028 Biennial Budget brings together the resources needed to maintain City
services, invest in infrastructure, and meet debt obligations over the two-year period.
The City is estimated to begin the biennium with $56.3 million in beginning fund
balances. Together with projected revenues, transfers, and other financing revenues,
total resources across all funds reach $235 million. This amount includes transfers
between City funds; therefore, total resources reflect the movement and availability of
funds across the City’s financial structure, not the total of entirely new revenue.

Total uses of resources are budgeted at $203.8
million, with $69 million budgeted for
operations and $78.7 million dedicated to
planned capital projects. The level of capital
investment reflects the utilization of resources
accumulated in prior years, as well as revenues
and other funding available during the
biennium, to support infrastructure.

The City anticipates an ending fund balance of $31.2 million by the end of 2028. This
remaining balance provides flexibility to address unforeseen circumstances, working
capital for daily operations, major equipment replacement, and other emerging needs.
The end balance is $25.1 million lower than at the beginning of the biennium, largely
due to the large capital investments the city has planned for this biennium, further
detailed in the CIP section of the budget.
Summary of Sources, Uses, and Ending Balances
General Fund
Special Revenue
SOURCES OF FUNDS
Beginning Balance
5,496,953
25,841,617
Revenues
40,347,364
24,017,547
26,646,182
Other Financing Sources
520,000
Total Sources
46,364,316
76,505,346
USES OF FUNDS
Operations
36,568,811
4,988,792
Capital Projects
2,126,151
30,771,410
Debt Service
26,373,030
Other Financing Uses
1,778,472
62,133,232
Total Uses
40,473,434
ENDING BALANCE
Change in Cash

Budget Overview

5,890,883
393,930

14,372,114
(11,469,503)

Debt Service

Utilities

Internal Service

Total All Funds

172,378
10,400
1,778,472
1,961,250

24,795,663
37,158,560
39,831,255
101,785,478

8,373,772
8,373,772

56,306,611
109,907,642
68,775,909
234,990,163

1,778,472
1,778,472

18,763,523
45,544,302
6,193,099
19,927,255
90,428,180

8,743,967
231,354
8,975,321

69,065,093
78,673,217
7,971,571
48,078,757
203,788,639

182,778
10,400

11,357,298
(13,438,365)

(601,549)
(601,549)

31,201,524
(25,105,087)

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City of Gig Harbor, Washington

2027-2028 Biennial Budget

Revenues

From the total resources of $235 million over the biennium, $123.8 million represents
new revenue generated across all funds. The City anticipates $61.4 million in revenue in
2027 and $62.5 million in 2028, which is an increase of $17.5 million from the $43.9
million collected in 2025. Sales tax remains the City’s single largest revenue source,
reflecting Gig Harbor’s role as a regional retail and tourism destination. Property tax,
utility charges, and dedicated special-revenue funds (Transportation Benefit District,
Hospital Benefit Zone, and Real Estate Excise Tax) make up most of the remaining
revenue.
Revenue estimates in this section are the City's own adopted budget figures for the
biennium for every fund. The longer-range projections presented for 2029–2032 are
based on the adopted 2028 budget and extended using relevant statutory formulas,
historical trends, and other documented assumptions. These projections are provided
for long-term planning and analytical purposes, not as competing budget figures.
One-time revenue policy. A meaningful share of the City's current sales tax collections reflects a
temporary, legally time-limited expansion of the state sales tax base (ESSB 5814, effective October
2025) rather than durable, ongoing economic activity. Consistent with sound budgeting practice, the
City distinguishes this one-time revenue from its ongoing operating base and does not build recurring
operating costs on top of it -- see "One-Time & At-Risk Revenue" below.

All-Funds Consolidated Revenue Summary
The table below summarizes revenue for all appropriated funds by major revenue type:
2025 actual, a 2026 year-end estimate, and the adopted 2027 and 2028 budget figures.
Individual revenue sources described in this section, taken together, represent more
than 75% of total citywide revenue.
Revenue Type

Charges for Services
Sales Tax
Other Taxes
Property Tax
HBZ Sales Tax
Licenses & Permits
Real Estate Excise Tax
(REET)
Other Revenue
Intergovernmental
Interest Earnings
Miscellaneous
Fines & Penalties
TOTAL, ALL FUNDS

Budget Overview

2025 Actual

2026 Estimate

2027 Budget

2028 Budget

$559,950
$3,476,928
$2,180,087
$230,814
$110,047
$43,899,392

$4,904,042
$2,708,475
$1,635,211
$1,277,513
$95,957
$49,201,551

$10,300,000
$8,194,147
$1,973,547
$123,500
$125,000
$61,367,464

$13,200,000
$5,126,400
$1,956,937
$123,500
$125,000
$62,465,007

$13,696,702
$8,947,713
$6,971,208
$3,452,348
$2,000,000
$1,186,135
$1,087,460

$11,854,106
$9,494,187
$8,880,985
$3,495,448
$2,000,000
$1,823,295
$1,032,332

$16,043,543
$9,297,000
$7,134,707
$3,518,020
$2,000,000
$1,618,000
$1,040,000

$17,186,133
$9,315,000
$7,220,837
$3,553,200
$2,000,000
$1,618,000
$1,040,000

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City of Gig Harbor, Washington

2027-2028 Biennial Budget

Figure 1. All-funds revenue by source, 2027-2028 biennium (adopted budget).

Figure 2. General Fund revenue by source, 2027-2028 biennium (adopted budget). Sales tax makes up roughly half
of General Fund revenue, reflecting the City's retail/tourism base -- a concentration that underscores the importance
of separating ongoing from one-time sales tax revenue (see below).

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City of Gig Harbor, Washington

2027-2028 Biennial Budget

Major Revenue Sources
This section describes the City's major individual revenue sources: their legal basis,
how the 2027-2028 estimate was developed, and significant historical or projected
trends.
Property Tax
Property tax is adopted at $3,518,020 for 2027 and $3,553,200 for 2028, levied against
the City's assessed valuation (roughly $5.1 billion in 2025 and growing with new
construction). Washington's 1% statutory levy lid limits the City's regular property tax
levy to at most 1% annual growth on existing property, plus the value of new
construction added to the tax rolls -- the primary source of real growth in this revenue.
The City's own levy rate has been declining for years (from roughly $0.70 per $1,000 of
assessed value in 2024 toward roughly $0.53 by 2028) because assessed values are
growing faster than the capped levy amount. A supporting long-range projection, built on
this same 1%-plus-new-construction methodology and anchored to the adopted 2028
figure, is shown in Figure 3 and carried through the 6-Year Revenue Outlook.

Figure 3. Property tax revenue, 2018-2025 actual, 2026 estimate, 2027-2028 adopted.

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City of Gig Harbor, Washington

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The City is only one of nine independent taxing districts that levy property tax on the
same Gig Harbor parcels. On a city property tax bill, the City's own levy of $0.669 per
$1,000 of assessed value is modest relative to the three largest components -- the state
schools levy and Gig Harbor Fire & Medic One (Fire District 5) each collect more than
three times what the City collects, and the Peninsula School District collects nearly
three times as much. Gig Harbor sits almost exactly even with Pierce County's own
general levy ($0.704 per $1,000). Four smaller special-purpose districts -- Pierce
County Rural Library, Port of Tacoma, Flood Control Zone, and Conservation Futures -add a combined $0.568 per $1,000 on top of these. Applied to the City's $5.1 billion
2025 assessed valuation, the City's levy generates about $3.4 million -- against an
estimated $11.7 million for state schools, $11.3 million for the fire district, $9.3 million for
the Peninsula School District, and $3.6 million for Pierce County's general levy, all
collected from the same tax base.

Figure 4. Property tax levy rate by taxing district, 2025, per $1,000 of assessed value.

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City of Gig Harbor, Washington

2027-2028 Biennial Budget

Sales Tax -- Ongoing & One-Time
General Fund sales tax (the local retail sales and use tax, RCW 82.14) is adopted at
$9,297,000 for 2027 and $9,315,000 for 2028 The City’s underlying pre-expansion sales
tax base has remained relatively flat since 2022, with limited organic growth over this
period. As a result, the adopted forecast remains close to the historical baseline rather
than assuming continued growth. In addition to the retail sales tax, the General Fund
also receives revenue from several distinct local-option sales taxes that are budgeted
separately from the general retail sales tax. This includes the Public Safety Sales Tax ,
which was adopted under Ordinance 399/Resolution 1307and in effect in effective
January 2025), a Criminal Justice sales tax, and a Park sales tax. These revenues are
reported under the "Other Taxes" summary above at the beginning of this section.
The adopted sales tax forecast includes ESSB 5814 revenue of $347,000 in 2027 and
$315,000 in 2028. These revenues are allocated to specific one-time uses, as described
in the “One-Time & At-Risk Revenue” section below. ESSB 5814 expanded the state
retail sales tax base to eight service categories effective October 1, 2025, and is
scheduled for repeal effective January 1, 2029, under ESSB 6346. The repeal is legally
bundled with a companion state income tax measure: if the income tax is struck down in
court, the service-tax repeal is voided as well, meaning this revenue could persist
beyond 2029 or disappear on schedule. The City's estimate of total ESSB 5814 revenue
exceeds these itemized allocations; the balance is intentionally left unbudgeted and
held as a buffer rather than allocating the funds into ongoing projections, given the
uncertainty over its long-term status. The Transportation Benefit District receives an
estimated, non-itemized one-time share as well (see below).

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City of Gig Harbor, Washington

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Figure 5. General Fund sales tax, ongoing baseline vs. estimated one-time (ESSB 5814) component, 2022-2032.

As with property tax, the City is one of several independent jurisdictions that levy tax on
the same retail sale. Of the combined 9.2% sales tax rate paid in Gig Harbor, the State
of Washington collects 6.5 percentage points; the City of Gig Harbor itself imposes 1.4
points, split across four separate authorizations -- the Basic and Optional local sales
taxes, a Public Safety sales tax (0.1 points, RCW 82.14.450), and the Transportation
Benefit District (0.3 points); Pierce Transit, a separate regional transit district whose
service area includes the City, collects 0.6 points; and Pierce County imposes the
remaining 0.7 points across seven separate specific-purpose levies of 0.1 point each. In
other words, roughly 1.1 of the 9.2 points -- the Basic, Optional, and Public Safety local
taxes, net of the county-share and DOR administrative reductions described below are
what reaches the City's General Fund.
Within that bucket, the City's own local retail sales tax allocation is itself a two-step
reduction, not a single flat rate. Washington's basic and optional local sales tax authority
(RCW 82.14.030) provides cities up to 1.0 percentage point combined -- Gig Harbor has
adopted both halves. Of that 1.0 point, Pierce County retains 15% (0.15 percentage
points) as its statutory share before any funds reach the City, and the Department of
Revenue retains a further 1% collection/administration fee under RCW 82.14.050 (0.01
percentage points on this base), leaving the City a net 0.84 points of the 1.0-point local
rate.

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City of Gig Harbor, Washington

2027-2028 Biennial Budget

Figure 6. Combined sales tax rate by jurisdiction, Gig Harbor (DOR location code 2708).

Utility Tax & Other Taxes
"Other Taxes" are budgeted at $7,134,707 in 2027 and $7,220,837 in 2028 and consist
primarily of the General Fund's 5% utility tax. The tax is applied to the gross revenues
generated by water, sewer, and stormwater utility service, including both City-owned
and private utilities operating in the City. Other taxes also include the Public Safety,
Criminal Justice, and Park local-option sales taxes described above.
The utility tax revenue is projected based on the City’s utility revenue forecast,
consistent with its statutory basis.
Licenses & Permits and Charges for Services
Licenses & Permits are adopted at $1,618,000 for 2027, with revenues gathered
primarily from building, plumbing, and mechanical permit fees. Charges for Services are
budgeted at $16,043,543 for 2027 citywide, revenues that largely come from utility
service charges (discussed below) and development fees. Both revenues sources are
tied to construction and development activity.
Building permit fee revenue is limited by statute to the reasonable costs associated with
permit processing, inspections, and plan review and is not available as a general
revenue source. The City's capital-fund development revenues, including Impact Fees
and General Facility Charges, are discussed together below because they share this
same underlying driver.

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City of Gig Harbor, Washington

2027-2028 Biennial Budget

Intergovernmental Revenue
Intergovernmental revenue, which includes primarily state-shared revenue and grant
funding, is adopted at $8,194,147 for 2027, compared with $3,476,928 in actual
revenue received in 2025. The increase reflects capital grant awards anticipated or in
hand for specific projects outlined in the Capital Improvement Plan (CIP). These
projects include the North Creek Culvert Replacement grant, a Transportation
Improvement Board (TIB) grant for 38th Avenue Phase 2, state funding for the SR16/Wollochet Drive safety improvements, Pierce County flood-control-district funding for
Lift Station 5, and funding for a police boat replacement. These revenues are
represented in the Storm, Street, and Sewer capital funds.
Utility Enterprise Funds (Water, Sewer, Storm)
The City's Water (401), Sewer (402), and Storm (411) operating funds are adopted at
$15,164,243 for 2027 and $16,280,833 for 2028, funded by monthly utility service
charges under the City's rate schedule. These figures reflect the City's utility rate study,
updated for current customer counts, and generate roughly one-third of all citywide
revenue. This represents the second largest revenue block after general taxes.
Transportation Benefit District (TBD)
The Transportation Benefit District (TBD), a separate taxing district that provides
dedicated funding for street maintenance and transportation capital projects, is adopted
at $3,160,000 for 2027 and $3,180,000 for 2028.
The TBD is funded by a sales and use tax totaling 0.3%, consisting of a 0.2% voterapproved rate authorized in 2019 for a ten-year term and a 0.1% councilmanic rate that
became effective in January 2025. The statute caps cumulative TBD sales tax authority
at 0.3%, so the current rate is at the maximum allowed under state law.
The 0.2% voter-approved portion, which pertains to roughly two-thirds of TBD revenue
is set to expire on March 31, 2030, unless reauthorized by voters. If the rate is not
renewed, TBD revenues would reduce by an estimated $2.2 million per year starting in
2030. This risk is reflected in the 6-Year Revenue Outlook's assumptions. TBD sales tax
revenue also carries a proportional one-time ESSB 5814 share (see "One-Time & AtRisk Revenue").
Hospital Benefit Zone (HBZ)
The Hospital Benefit Zone (HBZ) is a dedicated state sales tax credit mechanism that
has funded public infrastructure supporting hospital-district development. The City has
received exactly $2,000,000 per year. Unlike the other revenue sources in this section,
HBZ is not an added cost to local taxpayers. Instead, it is a credit against the state's
own share of sales tax already collected, redirected to the City up to a statutory annual
cap. As a result, it is not an additional local tax included within the sales tax shown in
Figure 6.

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City of Gig Harbor, Washington

2027-2028 Biennial Budget

The 2027 and 2028 budget each carry this revenue at $2,000,000, consistent with its
statutory, capped structure. This revenue is also projected to remain at this level through
2032 in 6-Year Revenue Outlook.
Real Estate Excise Tax (REET)
Real Estate Excise Tax (REET), including the first and second quarter-percent revenues
accounted for in Funds 301 and 305, is budgeted at $1,263,400 in both 2027 and 2028.
The forecast reflects a conservative approach relative to recent real estate transaction
trends.
REET is collected on the sale of real property and is restricted by state law for eligible
capital and maintenance purposes; it is not available to support general City operations.
As with property and sales taxes, the City’s combined 0.5 percent REET rate represents
only a portion of the total real estate excise tax paid when a property is sold. The State
of Washington separately applies a graduated real estate excise tax to the same
transaction, with rates ranging from 1.1 percent on the portion of the selling price up to
$525,000 to 3.0 percent on the portion above $3,025,000. These state rates are
separate from the City’s 0.5 percent share.
Lodging Tax, Impact Fees & General Facility Charges
Lodging Tax (Hotel-Motel Tax, fund 107) is estimated at $525,000 per year. Recent
revenue growth has been driven primarily by lodging price inflation rather than growth in
room nights sold. The use of this revenue is restricted by statute to tourism promotion
and tourism-related facilities.
Impact Fees, accounted for in the Fund 309 for Transportation and Parks, and General
Facility Charges (GFCs) accounted for in the Sewer, Storm, and Water capital funds
(410/412/420) are one-time development charges paid at the time of new construction,
legally restricted to capital projects identified in the City's 6-year Capital Improvement
Plan. They are adopted conservatively at $582,700 (Impact Fees) and $675,000 for
2027, below the level implied by the City's current fee schedule and recent construction
activity. General facility charges are estimated at $500,000, $75,000, and $100,000 for
water, storm, and sewer respectively, per year.

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City of Gig Harbor, Washington

2027-2028 Biennial Budget

One-Time & At-Risk Revenue
Two revenue streams identified in this section carry a legally-grounded, time-limited or
conditional character and should not be relied on for ongoing operating costs:
Revenue Source

2027

2028

Nature of Risk

General Fund Sales Tax -ESSB 5814 service-tax
expansion

$347,000

$315,000

Scheduled repeal 1/1/2029
(ESSB 6346); repeal is voided
if a companion state income
tax is struck down in court, so
timing is not fully certain in
either direction.

Transportation Benefit
District Sales Tax -- ESSB
5814 share (est., not
separately itemized)

$173,516

$173,516

Same ESSB 5814 repeal risk
as above.

Transportation Benefit
District -- 0.2% voterapproved rate

N/A

N/A

Expires 3/31/2030 absent voter
reauthorization; an estimated
$2.2M/yr reduction in TBD
revenue if not renewed.

The general fund revenue has been earmarked for one-time projects, whereas the
Transportation Benefit District Revenue is currently budgeted to support both ongoing
street operations and capital projects. If ESSB 5814 revenue outlasts January 2029
because the companion income tax is invalidated, the City will reassess whether to treat
it as ongoing at that time; the conservative default in this section is to assume the
scheduled repeal takes effect as written.

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City of Gig Harbor, Washington

2027-2028 Biennial Budget

Six-Year Revenue Outlook
The table and chart below extend the adopted 2027-2028 budget into a six-year outlook
through 2032, consistent with the City's long-range financial planning practice. 20292032 figures are projections built from each revenue source's own methodology
(statutory formulas, historical trend, or held flat where no material growth driver exists),
anchored to the adopted 2028 figure -- they are not additional budget requests.
Fund

2026 Est.

2027
Budget

2028
Budget

2029

2030

2031

2032

General Fund

$19,970,023

$19,863,027

$20,423,337

$20,717,528

$21,034,258

$21,417,366

$21,869,959

Utility
Operating
Funds
(Reference)

$11,655,085

$15,164,243

$16,280,833

$17,514,392

$18,775,149

$19,338,403

$19,918,555

Transportation
Benefit
District (TBD)

$3,392,398

$3,353,400

$3,373,400

$3,373,400

$3,373,400

$3,373,400

$3,373,400

Hospital
Benefit Zone
(HBZ)

$2,000,000

$2,000,000

$2,000,000

$2,000,000

$2,000,000

$2,000,000

$2,000,000

REET

$1,032,332

$1,263,400

$1,263,400

$1,288,668

$1,314,441

$1,340,730

$1,367,545

GFC / Utility
Capital Funds

$1,126,742

$14,065,347

$13,548,737

$13,548,737

$13,548,737

$13,548,737

$13,548,737

Lodging Tax

$577,322

$550,100

$550,100

$561,102

$572,324

$583,771

$595,446

Impact Fees

$567,331

$582,700

$582,700

$582,700

$582,700

$582,700

$582,700

Street

$381,798

$290,000

$288,000

$292,915

$298,015

$303,312

$308,820

All Other
Funds

$2,182,704

$4,235,247

$4,154,500

$4,154,500

$4,154,500

$4,154,500

$4,154,500

TOTAL, ALL
FUNDS

$42,885,735

$61,367,464

$62,465,007

$64,033,941

$65,653,523

$66,642,918

$67,719,661

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City of Gig Harbor, Washington

2027-2028 Biennial Budget

Figure 7. Six-year all-funds revenue outlook by fund, 2026 estimate through 2032 projection.

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City of Gig Harbor, Washington

2027-2028 Biennial Budget

Transfers

In addition to revenues received directly by individual funds, the City uses interfund
transfers to allocate resources across the organization. Transfers move resources from
one City fund to another when resources available in one fund are used to support
activities accounted for in another.
These transfers support a variety of planned activities, including operating costs, capital
projects, debt obligations, and City investments. For the 2027–2028 biennium, transfers
primarily support street and park improvements, utility capital projects, and facility
investments. Because transfers move existing resources between City funds, they do
not generate additional City-wide revenue.
Fund

Fund Name

001

General Fund

101
102
109
121
208

Streets
Streets Capital
Park Development Fund
City Building Capital
LTGO Bond Redemption
Capital Development Fund
(REET)
General Gov't. Capital
Improvement (REET)
Impact Fee Trust
Hospital Benefit Zone
(HBZ)
Water Operating
Sewer Operating
Utility Bond Redemption
Fund
Sewer Capital
Storm Operating
Storm Capital
Water Capital
Transportation Benefit
District (TBD)

301
305
309
310
401
402
408
410
411
412
420
650
Total

Interfund Debt Principal
Fund 208->410

Total

Budget Overview

2027
2027
2028
2028
Transfer
Transfer In Transfer
Transfer In
Out
Out
897,083
260,000
881,390
260,000
2,003,000
5,013,549
4,930,231
592,000
897,083

1,793,000
5,997,348
2,132,284
1,240,000
881,390

1,666,755

740,000

1,666,755

983,804

2,704,263

1,872,284

2,338,490

3,227,555

3,497,163
5,823,324

2,903,409
3,882,678
2,482,704

2,442,428

4,115,276
2,307,218
3,159,717

3,472,817
1,378,253

2,134,890
2,058,633

4,422,517

3,798,990

25,458,778 25,760,778

19,668,363 19,970,362

302,000
25,760,778 25,760,778

302,000
19,970,363 19,970,362

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City of Gig Harbor, Washington

2027-2028 Biennial Budget

Major Expenditures

This section details several non-CIP and non-personnel changes.
-

Joining Pierce County TV (PCTV) for help recording and broadcasting our council
meetings. In addition, PCTV provides broadcasting that is ADA compliant for both
closed captioning and screen captioning. PCTV also provides video production
services as part of their base services, so we will be able to produce a number of
short form videos to support the city’s needs. This request supports our public
engagement strategy. The estimated cost of this is $90,000 per year.

-

Police vehicle replacements. The vehicles that will be replaced are all approaching
100,000 miles and having reliability problems. Existing vehicles will be surplus and
the funds returned to the general fund. The annual cost of this is budgeted to be
$380,000 per year. This request supports our strategy of core service delivery.

-

Police Radios. The city’s police radios are aging past 10 years old and are no longer
supported by the manufacturer. All the radios were acquired when cities in Pierce
County migrated to South Sound 911. Police radios cost a bit more than $10,000
each and we have about 30 radios in total. $150,000 per year has been budgeted
per year for this expense. This request supports our strategy of core service delivery.

-

Police SWAT Team. The police department is proposing to join a group of local cities
that maintains an active interjurisdictional SWAT Team. This would allow the city to
not rely and pay Pierce County for these services, and have more operational
control in the event these services are needed in our community. The budget amount
of this program is $113,000 over the next biennium, with about half the costs in first
year startup and the other half in ongoing costs, mostly overtime for calls and
backfill. This request supports both our core service delivery strategy and is part of
our regulatory compliance.

-

Police Boat Repower. The city’s police boat’s engines have reached the end of their
useful life and are becoming unreliable. While the city works on securing funding for
a new boat, to keep the existing boat in service, the city needs to invest in new
engines for the existing vessel. The budged cost of this project is $30,000 and
supports the council’s strategy of core service delivery.

-

New Police Boat. As mentioned above, the current boat is reaching the end of its
useful life, and no longer meets the needs of our growing community, and the types
of calls the police boat gets asked to respond to. A new boat is very expensive, so to
offset this cost the team is working on finding grants or direct legislative
appropriations at both the state and federal level to pay for this asset. Moving
forward with the purchase of a new police boat will be contingent on securing
adequate funding. The estimated cost of a new boat is $630,000, and this budget
contemplates utilizing $150,000 in short term sales tax for the city to pay a share of
this vessel. This request supports the council’s strategy of core service delivery.

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City of Gig Harbor, Washington

2027-2028 Biennial Budget

-

Community and Event Space Feasibility. Evaluate community space for indoor
cultural and economic events in the City including location and scope. The budget
for this project is $140,000 and this supports the council’s economic development
strategy.

-

Judson Subarea Plan. This plan would help facilitate discussions and planning
around the Peninsula Shopping Center in downtown Gig Harbor, including
evaluating different uses of the property including multifamily housing, and expanded
commercial and employment opportunities as well as public amenities. The budget
for this project is $120,000 and supports the council’s housing and economic
development strategy along with our comprehensive plan.

-

Economic Development Plan. The project would educate Council and public
discussions of what economic sectors and businesses are of interest to the
community, where such uses could best be located and what public investments
may be necessary to promote retention, expansion and solicitation. With refined and
strategic direction, the City can better work with economic organizations (Chamber,
EDB, PSRC EDD, etc.), local and regional business interests and state agencies
and legislators to achieve tangible goals and metrics. The budgeted cost of this
project is $50,000 and supports both the comprehensive plan as well as council’s
economic development strategy.

-

Various Public Works Equipment Needs. The public works team plans to acquire or
replace various pieces of equipment that has reached the end of its useful life, or
address changing level of service needs the community has. This request supports
the council’s strategy of core service delivery. Below is a table showing what is being
requested.
Descriptions

Proposed
Status

Repl. Year Total Cost

General
Gov.

Parks

Streets

Water

Storm

Sewer

Front End Loader

Replacement 2027

$ 190,000

0%

25%

25%

25%

25%

0%

Mini-Excevator

Replacement 2028

$ 60,000

0%

0%

33%

33%

33%

0%

Equipment Trailer

Replacement 2028

$ 56,000

0%

0%

33%

33%

33%

0%

Asphalt Roller

Replacement 2028

$ 45,000

0%

0%

50%

25%

25%

0%

Tow behind Air Compressor

Replacement 2028

$ 40,479

0%

20%

20%

20%

20%

20%

38ft Scissor Lift

New

2027

$ 40,000

25%

0%

0%

0%

0%

75%

Large Format Mower 72 inch

Replacement 2027

$ 25,000

0%

100%

0%

0%

0%

0%

StreetScape mower

New

2028

$ 15,000

0%

25%

75%

0%

0%

0%

Road Sander (x2)

Replacement 2027

$ 18,000

0%

0%

100%

0%

0%

0%

Walk Behind Paint Sprayer (Streets)

Replacment

2027

$ 15,000

0%

0%

100%

0%

0%

0%

Crack Sealer w/Air Compressor

Replacement 2027

$ 105,000

0%

0%

100%

0%

0%

0%

-

Vehicle Replacements and Leases. The public works operations team is proposing
to continue with their practice from this biennium of leasing vehicles. As part of that
they have several replacement vehicles planned along with existing lease
obligations. The budget estimate for this program is $433,000 in 2027 and $562,000
in 2028.

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City of Gig Harbor, Washington

2027-2028 Biennial Budget

Debt and Long-Term Obligations

In addition to using available revenues, fund balances, and transfers between funds, the
City may use long-term debt to finance major capital improvements with useful lives that
extend beyond a single budget period. This approach allows the cost of long-term
investments to be spread over the period in which the assets provide service, while
preserving available resources for other capital and operating needs.
The 2027–2028 budget includes both existing debt obligations and planned new
financing. At the beginning of the biennium, the City’s external debt consists primarily of
the 2023 Limited Tax General Obligation (LTGO) Bonds, the 2017 and 2019
Water/Sewer Revenue Bonds, and Public Works Board loans supporting wastewater
infrastructure. The City also has two interfund loans associated with the Public Works
Operations Center. Because interfund loans represent obligations between City funds,
they are presented separately from external debt and eliminate at the City-wide financial
reporting level.
During the 2027–2028 biennium, the budget anticipates additional utility revenue bond
financing to support significant water, sewer, and stormwater capital improvements. The
current financing plan assumes approximately $9.0 million of utility revenue bonds in
2027 and $10.5 million in 2028, for a total of approximately $19.5 million in planned
borrowing. These amounts represent current planning estimates and do not commit the
City to issuing the full amount.
For budgeting purposes, the City assumes an interest rate of approximately 5.0 percent
and a 20-year repayment period for the proposed utility revenue bonds. These
assumptions are used for financial planning purposes and do not represent the terms of
future debt issuance. As of September 2026, longer-term high-grade municipal yields
were approaching 5 percent, but municipal rates can change before the issues debt.
Final borrowing amounts, interest rates, maturities, and repayment structures will be
established at the time of issuance based on project timing, available resources, market
conditions, the City’s credit profile, and Council authorization.

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City of Gig Harbor, Washington

2027-2028 Biennial Budget

Current and Planned Debt
Obligation

2023 LTGO Bonds

Purpose / Security
General governmental
capital; limited tax
general obligation
Water and sewer utility
revenues

2017 Water/Sewer
Revenue Bonds
2019 Water/Sewer
Water and sewer utility
Revenue Refunding
revenues
Bonds
Wastewater
PWTF PC08-951improvements; sewer
015
revenues
Wastewater treatment
PWTF PC13-961improvements; sewer
051
revenues
Lift Station 5A
Lift Station 5A; sewer
Public Works Board
net revenues
Loan
2027 Utility
Water and stormwater
Revenue Bonds
capital improvements
Water, sewer and
2028 Utility
stormwater capital
Revenue Bonds
improvements
Total planned
utility revenue
bond borrowing

Approx.
Principal
Entering
Biennium 1

Planned New
Borrowing
2027–2028

$2,691,000

—

$3,735,000

—

$3,600,000

—

$1,058,824

—

$1,655,455

—

Up to $2,500,000
authorized Remaining draws
—

$9,000,000

—

$10,500,000

$15,240,279

$19,500,000

The Lift Station 5A financing is a Public Works Board construction loan with an
authorized amount of $2.5 million, a 20-year term, and a stated interest rate of 2.12
percent. The agreement specifies that the loan is payable solely from the net revenues
of the sanitary sewer system and is subordinate to other utility obligations having a
superior lien on those revenues. Because the loan is drawn as project costs are
reimbursed, the actual outstanding principal and interest expense depend on the timing
and amount of individual draws. Interest begins accruing when each payment is issued.

1 Amounts are intended to show the approximate principal entering the 2027–2028 biennium and may

differ slightly from financial-statement balances because of the timing of scheduled payments and loan
draws.

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City of Gig Harbor, Washington

2027-2028 Biennial Budget

Planned Utility Revenue Bond Financing
Planned Issue

Water

Sewer

2027 Utility
Revenue Bonds

$3,600,000

2028 Utility
Revenue Bonds

$7,440,000 $1,540,000

$1,520,000 $10,500,000

Total

$11,040,000 $1,540,000

$6,920,000 $19,500,000

—

Stormwater

Total

$5,400,000

$9,000,000

The proposed utility revenue bond amounts reflect the City’s current capital financing
plan. Actual borrowing may be reduced, deferred, or restructured depending on project
schedules, project costs, available cash and restricted resources, utility revenues, and
market conditions at the time financing is undertaken.
Projected External Debt Service
The following table summarizes estimated principal and interest payments for the City’s
existing external debt, the Lift Station 5A Public Works Board loan, and the planned
2027 and 2028 utility revenue bond issues. For planning purposes, debt service on the
proposed utility revenue bonds assumes an interest rate of approximately 5.0 percent
and a 20-year level-principal repayment schedule. The table excludes interfund loan
payments and minor paying-agent or issuance-related fees.
Year

Principal

Interest

Total Debt
Service

2027

$2,369,321

$664,368

$3,033,689

2028

$3,024,900

$1,081,049

$4,105,949

2029

$3,083,488

$1,244,148

$4,327,636

2030

$3,137,488

$1,136,833

$4,274,321

2031

$2,216,488

$1,027,726

$3,244,214

Thereafter $20,908,593

$7,679,171

$28,587,764

Total

$12,833,296

$47,573,574

$34,740,278

Budget Overview

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City of Gig Harbor, Washington

2027-2028 Biennial Budget

Projected debt service is provided for planning purposes and will change as financing
assumptions are finalized. In particular, debt service for the proposed 2027 and 2028
utility revenue bonds will depend on the actual timing and size of each issuance,
interest rates available when the bonds are sold, and the final repayment structure.
Similarly, payments on the Lift Station 5A loan will reflect the timing and amount of the
remaining Public Works Board loan draws.
Interfund Loans
In addition to external debt, the City continues to repay two interfund loans associated
with the Public Works Operations Center. These loans were financed internally by the
Wastewater Capital Fund. The General Fund provides resources to the LTGO Bond
Fund for the scheduled principal and interest payments, while the Wastewater Capital
Fund records principal receipts as reductions to the interfund loan receivable and
recognizes the related interest revenue.
For budget planning purposes, the City has assumed a 5.5 percent interest rate on
these obligations. The applicable rates are variable and tied to earnings from the Local
Government Investment Pool (LGIP); therefore, actual interest payments may vary.
Because these obligations are between City funds, they are not included in the external
debt-service table above. However, they remain fund-level obligations, and the related
principal, interest, transfers, and interest revenue are included in the applicable 2027–
2028 fund budgets.
Debt Management
The City evaluates the use of debt as part of its broader capital and financial planning
process, considering its capital improvement program, utility rate planning, available
cash and restricted resources, reserve requirements, and prevailing market conditions.
Long-term debt is generally used to finance major capital investments that provide
benefits over the period in which the debt is repaid.
Utility debt is supported by utility revenues rather than General Fund revenues. As a
result, maintaining sufficient utility operating revenues, reserves, and debt-service
coverage is an important part of the City’s long-term utility financial planning. The City
will revisit projected borrowing amounts and debt-service assumptions as capital
projects advance and more precise information on project costs, schedules, available
resources, and market information becomes available.

Budget Overview

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City of Gig Harbor, Washington

2027-2028 Biennial Budget

General Fund
General Fund Summary and Overview

The General Fund supports many of the City’s core governmental services, including
administration, municipal court, police, community development, and parks and
grounds.
The General Fund is projected to begin the biennium with approximately $5.5 million in
fund balance and $40.8 million in revenues over the two-year period. Total uses are
budgeted at $40.5 million, resulting in an ending fund balance of $5.9 million at the end
of 2028. This represents an increase of about $389,000 from the beginning fund
balance.
Budget Overview
2024 Actual

2025 Budget

2025 Actual

2026 Budget

Beginning Fund Balance

5,227,629

6,896,099

3,842,877

6,017,177

Revenues
Taxes
Licenses & Permits
Intergovernmental Revenue
Charges for Goods & Services
Fines & Penalties
Miscellaneous Revenue
Other Revenue

14,568,854
972,650
423,278
149,030
80,112
725,560
1,463

15,645,809
1,195,923
471,678
187,250
99,656
587,075
-

15,705,910
1,152,595
502,908
180,743
110,047
486,776
22,729

15,948,539
1,219,841
299,545
190,611
100,653
537,424
-

Other Sources
Transfers In

10,113

1,415,933

1,402,889

Other Financing Sources

37,026

25,000

65,443

Total Revenues

16,968,086

19,628,324

19,630,040

Total Resources

22,195,715

26,524,423

Salaries & Wages
Personnel Benefits
Supplies
Services & Charges
Intergovernmental
Capital Outlay
Debt Service
Other Expenditures

6,312,451
2,296,681
571,801
4,487,485
1,405,156
45,909
-

2026 YTD

2027 Budget

2028 Budget

5,565,595

5,496,953

5,769,481

10,684,432
1,191,292
190,138
153,991
94,265
460,277
36,489

16,299,727
1,598,000
632,400
748,400
125,000
448,500
-

16,452,037
1,598,000
1,048,400
773,400
125,000
448,500
-

-

-

260,000

260,000

25,000

18,128

25,000

25,000

18,321,613

12,829,013

20,137,027

20,730,337

23,472,917

24,338,790

18,394,608

25,633,980

26,499,818

7,792,204
2,789,233
707,415
4,818,632
728,165
-

6,846,413
2,389,240
419,930
4,098,501
990,555
-

8,099,000
3,020,157
624,869
4,411,406
644,285
-

5,214,449
1,794,252
299,358
1,312,442
751,017
361

10,047,209
3,482,110
744,146
5,804,172
2,600
1,299,432
-

10,543,810
3,656,582
688,250
5,628,548
2,600
1,670,733
-

Expenditures

Total Direct Expenditures

15,119,484

16,835,649

14,744,639

16,799,717

9,371,879

21,379,668

22,190,523

Cost Allocation Charges
Transfers Out

3,233,353

3,685,000

3,162,683

3,915,000

1,400,000

(2,412,252)
897,082

(2,462,978)
881,390

Total Uses

18,352,837

20,520,649

17,907,322

20,714,717

10,771,879

19,864,499

20,608,935

Ending Fund Balance

3,842,877

6,003,774

5,565,595

3,624,073

7,622,729

5,769,481

5,890,883

Budget Overview

43

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City of Gig Harbor, Washington

2027-2028 Biennial Budget

Summary of Revenue

Taxes remain the primary source of General Fund revenue, accounting for
approximately 80 percent of revenues. Other resources are generated through
licenses and permits, intergovernmental revenues, charges for goods and services,
fines and penalties, and miscellaneous revenues.
Taxes — $32.8 million
Taxes includes sales, property, utility, and other taxes collected by the City. Sales tax
represents the largest individual source of tax revenue and, therefore, plays a significant
role in supporting ongoing City services.
Licenses and Permits — $3.2 million
Approximately $3.2 million is anticipated from licenses and permits over the biennium.
These revenues are primarily generated through building and development-related
permits, business licenses, and other regulated activities.
Intergovernmental Revenue — $1.7 million
Intergovernmental revenues include grants, shared revenues, and other resources
received from state, federal, and other governmental entities.
Charges for Goods and Services — $1.6 million
Charges for goods and services are projected to generate $1.6 million over the
biennium. These revenues are generated from fees charged for services provided by
the City, including development-related and other service fees.
Fines and Penalties — $250,000
Fines and penalties are projected at approximately $250,000 over the biennium, which
is a revenue primarily associated with Municipal Court activities.
Miscellaneous Revenue — $897,000
Approximately $897,000 in miscellaneous revenue is anticipated over the biennium.
This category includes investment earnings, reimbursements, and other revenues that
do not fall within the general Fund’s primary revenue categories.
Other Sources — $570,000
In addition to General Fund revenues, $570,000 in other sources is anticipated over the
biennium. This includes $520,000 in transfers from REET resources to support parks
maintenance and $50,000 in other financing sources. As discussed in the Interfund
Transfers section, transfers represent the movement of existing resources between City
funds rather than additional City revenue.

Budget Overview

44

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City of Gig Harbor, Washington

2027-2028 Biennial Budget

Legislative – City Council

The Legislative Department budget reflects the anticipated expenditure for the seven
City Council members to provide the necessary support to carry out Council meetings,
legislative actions, policy development, and public engagement described earlier in the
document.
Key functions of City council are outlined at the beginning of the budget.
Budget Overview
2024 Actual

2025 Actual

2026 Budget

Salaries & Wages
Personnel Benefits
Supplies
Services & Charges
Capital Outlay

64,945
5,163
131
4,079
-

71,731
5,756
355
9,543
-

68,000
5,407
2,000
7,000
-

Total Expenses

74,319

87,385

82,407

2026 YTD

2027 Budget

2028 Budget

39,200
3,166
4,226
13,753
-

65,100
4,203
2,000
15,000
-

65,100
4,203
2,000
15,000
-

60,345

86,303

86,303

2025-2026 Highlights
- Created and implemented the three- year strategic plan (2026-2029)
- Adopted a Multi-Family Tax Exemption (MFTE) Program
- Adopted a comprehensive plan
Strategic Priorities
- Ensure long-range financial stability to provide a balance of city services.
- Continue to ensure City of Gig Harbor's success through policies that support
fulfilment of the Strategic Plan.
- Work with regional agencies to influence major issues like congestion,
transportation, and employment.

Budget Overview

45

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City of Gig Harbor, Washington

2027-2028 Biennial Budget

Municipal Court

The Municipal Court is a court of limited jurisdiction that serves citizens and visitors who
have been charged with misdemeanors, civil infractions, or parking violations that occur
in the City of Gig Harbor.
Key responsibilities include:
- Adjudicates criminal misdemeanor and gross misdemeanor offenses and imposes
appropriate fines, fees, and punishments.
- Adjudicates civil infractions and imposes penalties and deferrals as appropriate.
- Collects fines, restitution and other assessments imposed by the court and accounts
for all funds received and disbursed.
- Manages juries for an estimated twelve (12) trials scheduled each year.
- Assures the due process requirement of a public defender at arraignments.
- Coordinates interpreters for hearing impaired persons and languages.
- Monitors, evaluates, and implements legislative mandates and changes in state law
and court rules.
Budget Overview
2024 Actual

2025 Actual

2026 Budget

Salaries & Wages
Personnel Benefits
Supplies
Services & Charges
Capital Outlay

352,354
126,523
1,940
128,408
-

351,203
117,894
1,668
138,950
-

401,500
161,900
13,000
183,500
-

195,273
49,578
1,492
94,317
-

347,886
80,763
3,000
197,500
265,000

362,496
84,570
3,000
210,225
-

Total Expenses

609,225

609,715

759,900

340,659

894,149

660,292

2026 YTD

2027 Budget 2028 Budget

2025 – 2026 Highlights
- Expanded video hearings with Pierce County Jail to reduce or eliminate the need for
transport of incarcerated defendants.
- Participated in critical Incident training for greater court security.
- Increased the pay of the pro tem (pro tempore/ for the time being) judge to align with
industry norms and inflation.
- Reclassified, recruited, and filled the Court Assistant position.
- Recruited and filled the vacant Judicial Specialist position.
- Renewed participation in the state Language Assistance Reimbursement Program.
- Received Post-Conviction Program grant funding to support jail alternatives, drug
and alcohol assessments, treatment, and other court-ordered classes for indigent
defendants.
2027 – 2028 Goals
- Procure and implement electronic case management and filing system.
- Update and translate additional court forms for improved access to justice.

Budget Overview

46

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City of Gig Harbor, Washington

2027-2028 Biennial Budget

Long-Range Plans
- Technology improvements to provide modern, interactive online services and forms
to achieve greater efficiency, provide access to justice, and instill public trust and
confidence.
- Increase succession planning, cross training, and education.

Budget Overview

47

Page 58 of 153

City of Gig Harbor, Washington

2027-2028 Biennial Budget

Administration

The Administration Department provides overall leadership and coordination for City
operations, supporting the implementation of City Council policies, priorities, and longterm goals. The department works across City departments to coordinate programs,
projects, and organizational initiatives and supports the effective delivery of City
services.
Key functions of the department include:
- Providing organizational leadership and coordination across City departments,
programs, and capital projects.
- Supporting the implementation of City Council policies, priorities, and strategic
initiatives.
- Coordinating citywide planning and supporting the development and implementation
of the biennial budget.
- Supporting policy development through research, analysis, and coordination with
City departments.
- Managing intergovernmental relations and coordinating with regional agencies,
community partners, and other governmental entities.
- Supporting economic development initiatives and other efforts that contribute to the
City’s long-term goals.
- Coordinating citywide initiatives and issues that involve multiple departments or
areas of City operations.
Budget Overview
2027 Budget

2028 Budget

250,852
73,874
8,744
98,446
-

403,516
135,583
6,500
146,000
-

427,439
144,147
6,500
146,000
-

998,800

431,916

691,599

724,085

-

-

-

(227,524)

(238,211)

804,935

998,800

431,916

464,075

485,874

2024 Actual

2025 Actual

2026 Budget

Salaries & Wages
Personnel Benefits
Supplies
Services & Charges
Capital Outlay

343,523
99,599
980
207,790
-

427,574
112,680
15,937
248,744
-

437,400
168,900
15,000
377,500
-

Total Expenses

651,892

804,935

Cost Allocation
Reimbursement

651,892

Net Department Cost

2026 YTD

2025 – 2026 Highlights
- Worked with Council to update the city’s strategic plan.
- Hired Communications Manger, and H3 Manager, and got those programs started.
- Moved several major projects from design to construction such as the Homeport and
38th.

Budget Overview

48

Page 59 of 153

City of Gig Harbor, Washington

2027-2028 Biennial Budget

2027 – 2028 Goals
- Successfully onboarded a new Mayor and new City Councilmembers, providing the
tools, information, and organizational support needed to ensure a smooth transition
and continuity of city leadership.
- Strengthened engagement with boards, commissions, community groups, and
regional partners, fostering stronger relationships and improving coordination on
issues important to the community.
- Identified and advanced new revenue opportunities to support the city’s long-term
financial sustainability and ability to deliver services to the community.
- Launched the Civic Academy, creating a new opportunity for residents to better
understand city government, services, decision-making, and how to become more
engaged in their community.
- Strengthened the city’s executive leadership team through the recruitment and
onboarding of new executive team members and continued development of
organizational leadership capacity.
- Expanded leadership development and training opportunities, supporting stronger
management practices, employee development, accountability, and succession
planning throughout the organization.
- Evaluated and transitioned the city’s insurance carriers, achieving more than
$200,000 in annual savings while maintaining appropriate coverage and protecting
the city’s financial interests.
Long – Range Plans
- Continue working with directors and managers on succession planning so the City is
prepared for retirements, turnover, and changes in staffing.
- Strengthen partnerships with neighboring jurisdictions, regional agencies, and other
public entities. Many of the challenges facing cities in Washington, including
infrastructure, housing, transportation, public safety, and environmental
requirements, will require coordinated regional solutions.
- Work with state and regional partners to address emerging wastewater treatment
requirements, including future limits on nitrogen discharged to Puget Sound. These
requirements may have significant operational and financial impacts for the City and
will require long-term planning, coordination, and evaluation of funding and
implementation options.
- Help move the City’s economic development, housing, and community projects from
planning into implementation as Council provides direction.

Budget Overview

49

Page 60 of 153

City of Gig Harbor, Washington

2027-2028 Biennial Budget

Human Resources

The Human Resources (HR) department strengthens the City’s ability to achieve its
goals by supporting a capable, engaged, and well-prepared workforce. The team
partners with employees, supervisors, and department leaders to meet workforce
needs, foster a productive and inclusive workplace, and ensure the City has the talent,
leadership, and systems required for effective public service. HR also builds
organizational capacity through leadership development, preparing for workforce
transitions, performance management, risk mitigation, and the implementation of
compliant, efficient, and sustainable practices.
Budget Overview
2027 Budget

2028 Budget

81,612
22,435
3,390
134,160
-

726,136
254,994
15,500
192,500
-

771,374
270,784
15,500
112,500
-

381,455

241,597

1,189,129

1,170,158

-

-

-

(494,638)

(486,746)

296,902

381,455

241,597

694,491

683,411

2024 Actual

2025 Actual

2026 Budget

Salaries & Wages
Personnel Benefits
Supplies
Services & Charges
Capital Outlay

129,202
50,510
16,475
41,585
-

143,853
38,667
12,186
102,197
-

171,200
67,800
21,244
121,211
-

Total Expenses

237,772

296,902

Cost Allocation
Reimbursement

237,772

Net Department Cost

2026 YTD

2025 – 2026 Highlights
- Strengthened employee engagement, organizational culture, and staff recognition
through supervisor coaching, employee support, recognition activities, and
opportunities for staff connection.
- Fostered productive relationships with employee bargaining representatives and
facilitated collective bargaining and contract administration.
- Progressed compensation strategies and wage recommendations to promote
recruitment, retention, internal equity, and market competitiveness.
- Advanced recruitment practices and strengthened the City's employment brand,
including expanded use of digital and social media channels to reach prospective
employees.
- Enhanced performance management practices, with an emphasis on timely
evaluations, clear expectations, meaningful feedback, and accountability.
- Modernized HR and payroll operations through digital recordkeeping, timekeeping
improvements, onboarding enhancements, and process automation.
- Updated policies, procedures, forms and practices to maintain legal compliance,
operational relevance, and consistency across the organization.
- Expanded employee learning and development through supervisory and leadership
training, safety and emergency preparedness, customer service, workplace conduct,
and job-specific programs.
- Collaborated with departments to identify opportunities to improve organizational
efficiency, clarify roles and expectations, and support workforce planning.
Budget Overview

50

Page 61 of 153

City of Gig Harbor, Washington

2027-2028 Biennial Budget

2027 – 2028 Goals
- Strengthen the city’s coordinated approach to risk and safety through updated
policies, training, accident prevention, emergency preparedness, continuity planning,
compliance reviews, and development of an enterprise risk management framework.
This work supports staff safety, workforce resilience, and consistent operational
standards across departments.
- Partner with Public Works in pursuing American Public Works Association (APWA)
accreditation as a framework for continuous improvement, operational consistency,
accountability, documentation, succession planning, and risk reduction. This effort
reinforces Citywide professional standards and process efficiency.
- Establish a structured succession and leadership development program focused on
critical positions, institutional knowledge, emerging leaders, mentoring, crosstraining, and preparing employees for future leadership roles. Expand supervisory
coaching and development to strengthen performance management, leadership
support, and organizational continuity.
- Modernize the City’s performance management program to promote meaningful
feedback, clear expectations, employee development, accountability, and alignment
with organizational priorities. Leverage technology to streamline evaluations,
improve tracking, improve employee and supervisory experience, and reduce
administrative burden. This strengthens continuous improvement, internal equity,
and consistency in expectations across the organization.
- Support employee engagement and retention through effective onboarding,
recognition, wellness initiatives, professional development, internal career
opportunities, and ongoing review of workforce feedback and trends. This work
supports the attraction, development, and retention of a highly qualified workforce.
- Advance compensation strategies, benefits administration, and labor relations
practices that support recruitment, retention, internal equity, and relationships with
employee bargaining representatives.
Long – Range Plans
- Workforce adaptability and future readiness in a rapidly changing environment.
- AI integration and responsible innovation.
- Develop and workforce data and analytics program.

Budget Overview

51

Page 62 of 153

City of Gig Harbor, Washington

2027-2028 Biennial Budget

City Clerk

The City Clerk’s Office supports transparent and accessible local government by serving
as the official custodian of City records and providing legislative and administrative
support to the Mayor, City Council, City departments, and the public. The office
coordinates official City records and legislative processes while helping ensure the City
meets the requirements for public records, open public meetings, records retention, and
other municipal functions.
The key functions of the office include:
- Coordinating City Council agendas, meeting materials, notices, public hearings, and
other legislative proceedings.
- Preparing and maintaining official minutes, ordinances, resolutions, contracts, and
other legislative records.
- Administering the City’s public records disclosure program and coordinating
responsive records searches across departments.
- Managing Citywide records retention, disposition, preservation, and access to
electronic and historical records.
- Coordinating updates to the Gig Harbor Municipal Code and maintaining access to
official City documents.
- Accepting and processing claims for damages and supporting Citywide risk
management functions.
- Providing guidance and training to City staff on public records, records retention,
meeting procedures, legislative processes, and related administrative requirements.
Budget Overview
2024 Actual

2025 Actual

2026 Budget

2026 YTD

2027 Budget

2028 Budget
243,770
78,147
3,000
93,200
-

Salaries & Wages
Personnel Benefits
Supplies
Services & Charges
Capital Outlay

-

-

-

-

233,597
74,501
3,000
88,200
-

Total Expenses

-

-

-

-

399,297

418,117

-

-

-

-

(132,217)
267,080

(138,449)
279,668

Cost Allocation
Reimbursement
Net Department Cost

The Clerk’s office was previously combined with administration, so it has no
independent budget history.
2025 – 2026 Highlights
- Maintained timely preparation and publication of City Council agendas, packets,
meeting notices, minutes, ordinances, resolutions, and other official records.
- Supported regular and special City Council meetings, study sessions, public
hearings, and other Council proceedings.
Budget Overview

52

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City of Gig Harbor, Washington
-

2027-2028 Biennial Budget

Continued administration of the City’s public records disclosure program and
coordinated responsive records searches across departments in accordance with
state law.
Improved electronic records management practices to support the appropriate
retention, organization, searchability, and accessibility of City records.
Maintained and expanded public access to City Council agendas, packets, minutes,
recordings, ordinances, resolutions, and other official records.
Supported ongoing codification and maintenance of the Gig Harbor Municipal Code.
Provided guidance and training to City staff on public records, records retention,
meeting procedures, and related statutory requirements.
Supported Citywide risk management and administrative functions, including the
acceptance and processing of claims for damages.
Continued professional development to remain current on evolving requirements
related to public records, open public meetings, records management, and municipal
administration.

2027 – 2028 Goals
- Strengthen Citywide records management practices by improving consistency
across departments, supporting appropriate application of state retention schedules,
and improving the organization and accessibility of electronic records.
- Improve public records processes and technology to support efficient records
searches, timely responses, and consistent application of public disclosure
requirements.
- Enhance legislative and meeting support by improving agenda development
workflows, consistency of meeting materials, and public access to legislative
information and history.
- Expand Citywide training and resources related to public records, records retention,
open public meetings, meeting procedures, and other functions administered by the
City Clerk’s Office.
Long-Range Plans
- Develop a comprehensive Citywide records management program with consistent
standards for the creation, organization, retention, disposition, preservation, and
retrieval of records.
- Continue transitioning permanent and essential City records to secure, searchable,
and sustainable electronic formats while improving indexing and access to historical
and legislative records.
- Modernize the public records program through improved search capabilities,
streamlined processes, stronger department coordination, and appropriate use of
technology.
- Strengthen organizational continuity by documenting key City Clerk processes,
standardizing procedures and templates, cross-training staff, and maintaining
accessible reference materials.
- Establish a training program for public records, records retention, open public
meetings, legislative processes, and other Clerk-administered requirements
Budget Overview

53

Page 64 of 153

City of Gig Harbor, Washington

2027-2028 Biennial Budget

Information Technology Services

The Information Technology Services (ITS) Department enhances constituent and
employee technology services, supports data-driven decision-making, and delivers
innovative, user-friendly systems that strengthen City operations and community
services. Guided by our commitment to simplicity, innovation, diverse perspectives, and
outcome-focused solutions, ITS provides internal technology services across the
organization to ensure staff have reliable, modern tools for effective operations.
The key functions of the department include:
- Governing the policies, processes, practices, and tools necessary to maintain a
secure, reliable, and well-aligned technology infrastructure.
- Planning, acquiring, developing, testing, deploying, and maintaining applications,
data systems, cloud-based technologies, hardware, software, and other technology
resources.
- Managing the procurement and lifecycle of technology-related hardware, software,
services, telephony, and licenses, including the responsible surplus of expired or
obsolete technology assets.
- Supporting and maintaining the City’s network and technology infrastructure,
including WAN, LAN, WLAN, telephony, and other systems that enable efficient
operations and dependable service delivery across departments.
- Maintaining cybersecurity and data protection practices to safeguard City systems,
networks, and information and support applicable regulatory requirements.
- Providing technical support and advisory services to departments to support daily
operations, projects, system conversions, and technology-related decision-making.
- Planning and managing technology resources and expenditures to support current
operational needs and long-term technology investments.
Budget Overview
2024 Actual

2025 Actual

2026 Budget

Salaries & Wages
Personnel Benefits
Supplies
Services & Charges
Capital Outlay

45,653
14,505
100,390
286,902
48,428

66,836
22,079
9,715
235,231
170,931

67,400
18,800
25,000
357,280
-

Total Expenses

495,877

504,792

495,877

504,792

Cost Allocation
Reimbursement
Net Department Cost

2026 YTD

2027 Budget

2028 Budget

124,646
44,282
5,273
178,189
-

533,960
184,504
28,000
916,750
219,000

563,610
195,980
24,500
812,750
295,500

468,480

352,390

1,882,215

1,892,340

468,480

352,390

(833,043)
1,049,171

(837,303)
1,055,037

2025 – 2026 Highlights
- Upgraded technology in most City conference rooms to improve employee
collaboration and operational efficiency.
- Partnered with Public Works to deploy public Wi-Fi, access control systems, and
surveillance technology at Doris Heritage Park.
Budget Overview

54

Page 65 of 153

City of Gig Harbor, Washington
-

2027-2028 Biennial Budget

Installed improved fire suppression infrastructure in the City’s data center to
support continuity and risk mitigation.
Consolidated technology platforms under the Microsoft 365 G5 environment,
streamlining administration, reducing total cost of ownership, and enhancing the
user experience.
Completed a comprehensive audit of wired and wireless telecommunications,
resulting in annual savings of more than $100,000.
Implemented a modern data protection suite to strengthen cybersecurity and
support operational resilience.
Transitioned wireless services to FirstNet to improve prioritized coverage for first
responders and other departments.
Upgraded all City workstations to Windows 11.
Improved wide-area network connections to support operations and wastewater
services while reducing costs by approximately $50,000 per year.
Replaced the City’s server infrastructure to improve reliability and support future
system needs.
Implemented multi-factor authentication within the Police Department to enhance
security.
Collaborated with Finance to establish the ITS Internal Service Fund to support
long-term financial stability.
Developed and formalized a Citywide technology lifecycle program to improve
planning, consistency, and cost management.

2027 – 2028 Goals
- Migrate City data from Box.com to Microsoft 365 to align information storage with
existing productivity tools, improve access, and consolidate platforms.
- Replace the City’s telephone system and continue transitioning services from
legacy POTS lines to more reliable, cost-effective solutions.
- Enhance wi-fi infrastructure for city staff.
- Cyber Security:
o Complete Citywide implementation of multi-factor authentication.
o Replace aging firewalls with modern security systems.
o Deploy Managed Detection and Response services to strengthen threat
identification and response.
o Conduct penetration testing and remediation to address vulnerabilities and
reinforce cyber resilience.
- Collaborate with Public Works to expand physical access control and
surveillance at city facilities.
Long – Range Plans
- Partner with departments to create a long-range technology roadmap to support
new and progressive technologies and streamline processes throughout the city.
- Continuously strengthen the City’s cybersecurity posture to reduce operational
risk and adapt to evolving threats.

Budget Overview

55

Page 66 of 153

City of Gig Harbor, Washington

2027-2028 Biennial Budget

Housing, Health, and Human Services

The Housing, Health & Human Services (H3) Program advances the City's strategic
priority of fostering a safe, healthy, and inclusive community by leading initiatives that
address housing stability, homelessness, behavioral health, public health, and human
services. The program develops and implements policies, coordinates cross-sector
partnerships, provides resource navigation, manages grants and contracts, and delivers
community-based programs that improve resident well-being and strengthens access to
essential services. Through strategic planning, regional collaboration, and datainformed decision-making, H3 leverages community partnerships and City resources to
address emerging needs, improve service delivery, and enhance the quality of life for
Gig Harbor residents.
Budget Overview
2026 Budget

2025 Actual

2024 Actual

2026 YTD

2027 Budget

2028 Budget
256,280
86,681
15,500
57,000
415,461

Salaries & Wages
Personnel Benefits
Supplies
Services & Charges
Capital Outlay

-

-

-

-

245,698
82,070
17,000
57,000
-

Total Expenses

-

-

-

252

401,768

252

2025 – 2026 Highlights
- Completed 2025 and 2026 Point-in-Time count.
- Maintain City’s resource webpage.
- Planned and executed quarterly Community Faith Leaders Gathering, resulting in
a local faith organization opening the first safe parking site in the city’s history.
- Assisted the Community Diversity and Engagement Mayoral Ad Hoc Committee
in completing the city’s first welcoming community survey
- Provide resource navigation for internal and external referrals.
- Successful partnership with Gig Harbor Police department (GHPD) in providing
co-response for mental health, homelessness, and domestic violence.
- Successfully collaborated with GHPD, community partner Chapel Hill, and
community partner Tacoma Rescue Mission to have a safe and effective
inclement weather plan.
- Successfully worked with FISH foodbank to have the Hunt Street property
deeded back to the city (two years early) for the purpose of affordable housing.
- Developed, launched, and managed city’s inaugural Youth Council
- Planned and executed the Youth Council’s initiative to host a Youth Mental
Health Summit in response to growing concerns of youth suicide.
- Developed a strong partnership with Pierce County and Peninsula School District
on a community response to mental health.
- Planned, organized, and successfully executed an Affordable Housing Townhall,
providing education for the community.
- Appointed by the Governor to the State Advisory Council on Homelessness

Budget Overview

56

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City of Gig Harbor, Washington
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2027-2028 Biennial Budget

Identified grant funding sources for expanding co-response program in
partnership with GHPD and GHFD.
Established city’s first homeless response policy
Updated the city’s income guidelines for the Low-Income Senior Citizen and
Persons with Disabilities Discount Program and included people with disabilities
as eligible recipients.

2027 – 2028 Goals
- Successfully acquire funding to expand dedicated co-response program in
partnership with GHPD and GHFD.
- Identify opportunities to utilize property returned to the city for affordable housing
purposes
Long – Range Plans
- Create a Community and Resource Center
- Establish an affordable housing development on Hunt Street Property

Budget Overview

57

Page 68 of 153

City of Gig Harbor, Washington

2027-2028 Biennial Budget

Communications and Community Relations

The communications office focuses on building public trust, increasing civic
engagement, and improving understanding of complex issues. The office ensures all
city communications align with consistent writing and branding standards, which
strengthens the city’s ability to clearly share its values, connect residents with
information, encourage engagement, and build stronger relationships with the media.
During the 2027–28 biennium, the communications team will continue to tell the stories
of the city in engaging and impactful ways to increase engagement in the municipal
process, support for city initiatives, and sense of civic pride and duty in service to the
greater community.
Key areas of focus include:
• Communicate with transparency to build trust.
• Show empathy to foster compassion.
• Leverage consistent messaging to create stability.
• Provide context and illustrate vision to instill hope.
Budget Overview
2026 Budget

2025 Actual

2024 Actual

2026 YTD

2027 Budget

2028 Budget
160,366
72,986
16,300
114,100
-

Salaries & Wages
Personnel Benefits
Supplies
Services & Charges
Capital Outlay

-

-

-

-

154,690
69,023
16,300
114,100
-

Total Expenses

-

-

-

-

354,114

363,752

-

-

-

-

(117,256)
236,858

(120,447)
243,305

Cost Allocation
Reimbursement
Net Department Cost

Communications was previously combined with administration, so it has no independent
budget history.
2025 - 26 Highlights
• Developed an initial citywide communications strategy and plan.
• Rebranded the Gig-a-byte newsletter and implemented citywide updated
branding standards.
• Implemented community guidelines for social media content and engagement.
• Initiated intentional efforts to build relationships with local media outlets and
reporters.
• Supported the first State of the City address from the mayor, presented to a
variety of community stakeholder groups.
• Published the city’s first Annual Report.
• Supported the revision of the city council’s three-year strategic plan.

Budget Overview

58

Page 69 of 153

City of Gig Harbor, Washington
•

2027-2028 Biennial Budget

Coordinated the development of staff policy in collaboration with the city attorney
and department directors for guiding staff use of AI technology in city business.

2027 - 28 Goals
Secure funding for additional department capacity through a new permanent
communications assistant position. A communications function that is operating
primarily in response to immediate demands has limited capacity to proactively
engagement, improve accessibility, or plan communications around major city projects.
Looking forward to the next biennium, the city's strategic priorities are ambitious, and
each depends on the community understanding what the city is doing, why it matters,
and how residents can participate. The proposed position represents a targeted
investment that allows the city to deliver on its commitment to public service and
transparency. Strengthening the city’s ability to communicate why decisions are being
made, how investments affect the community, and how residents can participate,
supports multiple aspects of the newly revised strategic plan:
• Housing diversity – consistently explain complex housing-related issues in plain
language and connect residents, property owners, developers, and community
partners with reliable information.
• Economic vitality – clear, predictable, and effective information about permitting,
development, events, and other city services contributes to a healthy business
environment.
• Community connections – consistent, accessible, and engaging information
across channels fosters connection; increased listening and assessment of
community engagement data fosters understanding.
Migrate city council meeting coverage to PCTV to meet ADA standards and future
accessibility needs. Contracting with Pierce County TV to manage city council meeting
recordings and publication will expand public access to civic proceedings through the
PCTV broadcast network, increasing the reach of meeting content, improving
transparency, and providing residents with more reliable ways to view and engage with
local government actions. This partnership will also support the city’s compliance with
federal ADA video accessibility requirements taking effect in 2027 by ensuring council
meeting videos are produced, managed, and published with appropriate accessibility
features for people with disabilities.
Long Range Plans
Continue to raise awareness and understanding of complex issues and challenges to a
broad range of key publics to advance city strategic priorities.

Budget Overview

59

Page 70 of 153

City of Gig Harbor, Washington

2027-2028 Biennial Budget

Finance

The Finance Department is responsible for managing the city’s financial resources and
supporting the financial needs of city operations. The department oversees the
collection, stewardship, and use of public funds to ensure transparency, compliance,
and long-term fiscal stability.
The Key responsibilities include:
- Treasury
o Receive, record, and deposit all monies into the city’s bank accounts,
ensuring timely and accurate processing of revenues from taxes, fees,
grants, and other sources.
o Maintain the city’s banking relationships and ensure efficient cash flow.
o Manage the city’s short-term investments in accordance with the city’s
investment policy
o Arrange financing for capital projects.
o Administer the city’s debt program.
- Budget Preparation and Administration
o Prepare the city’s annual budget and manage the budget throughout the
cycle.
o Monitor city revenue sources and provide periodic revenue forecasts to
support decision-making.
- Accounting Services
o Prepare the city’s annual financial reports.
o Manage the city’s financial accounting system.
o Provide accounting support to departments.
o Process accounts payable and audit expense vouchers.
o Track grant expenditures
o Maintain the city’s internal control systems to ensure accurate and reliable
financial reporting.
Budget Overview
2024 Actual

2025 Actual

2026 Budget

Salaries & Wages
Personnel Benefits
Supplies
Services & Charges
Capital Outlay

269,094
96,994
18,061
222,640
-

282,835
89,992
9,967
166,106
-

323,300
128,900
15,500
193,500
-

Total Expenses

606,790

548,900

Cost Allocation
Reimbursement

606,790

Net Department Cost

Budget Overview

2026 YTD

2027 Budget

2028 Budget

181,649
50,021
2,141
212,016
-

893,335
276,725
5,000
211,500
-

947,031
293,705
5,000
218,500
-

661,200

445,827

1,386,560

1,464,236

-

-

-

(717,009)

(758,070)

548,900

661,200

445,827

669,551

706,166

60

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City of Gig Harbor, Washington

2027-2028 Biennial Budget

2025 – 2026 Highlights
- Built a new budget that incorporates both Indirect Cost Allocation’s as well as
Internal Service Fund charges. This has allowed the city to better understand
how much overhead services cost.
- Developed various internal accounting policies and financial controls.
- Provided in-depth forecasts of critical revenue streams to the city like Sales Tax.
2027 – 2028 Goals
- Implement additional accounting modules and work with departments to improve
our accounts payable processes.
- Develop utility billing policies and update utility billing portions of the municipal
code.
- Continue developing internal policies and document existing processes.
- Create a more regular forecast and report cadence for financial information to
Directors and Elected leaders.
- Work with directors and council to understand costs and levels of service across
our organization.

Budget Overview

61

Page 72 of 153

City of Gig Harbor, Washington

2027-2028 Biennial Budget

Police

The Police Department provides professional law enforcement and public safety
services to protect the well-being of residents, businesses, schools, and visitors.
Through proactive policing, community partnerships, and coordinated emergency
response, the department works to prevent crime, address community needs, and
support a safe and resilient community.
The key functions of the department include:
- Conducting routine patrols to deter crime, promoting traffic safety, maintaining a
visible public safety presence, and responding to calls for service.
- Investigating reported crimes, developing cases for prosecution, and working to hold
offenders accountable.
- Operating and maintaining marine-response capabilities to support boating safety,
education, enforcement, and emergency response on local waterways.
- Planning for and responding to emergency situations to preserve public peace and
support coordinated emergency operations.
- Maintaining professional standards through policy development, training,
accreditation, evidence and property accountability, and administrative oversight.
- Building partnerships with residents, businesses, schools, community organizations,
and regional public safety agencies to support community safety and resilience.
Budget Overview
2024 Actual

2025 Actual

2026 Budget

Salaries & Wages
Personnel Benefits
Supplies
Services & Charges
Capital Outlay

3,168,955
1,140,532
257,276
720,018
115,223

3,360,643
1,174,958
195,390
699,246
631,781

4,081,100
1,345,900
213,200
885,311
355,285

Total Expenses

5,402,005

6,062,019

6,880,796

2026 YTD

2027 Budget

2028 Budget

2,639,828
979,129
143,685
214,224
434,128

3,903,822
1,338,984
270,096
586,200
565,000

4,063,719
1,392,373
246,200
505,900
1,195,000

4,410,993

6,664,101

7,403,191

2025 – 2026 Highlights
- Maintained Washington Association of Sheriffs and Police Chiefs (WASPC)
accreditation and continued the policy, training and documentation work necessary
to sustain accreditation.
- Continued emphasis on professional training, instructor development and
documentation of employee qualifications and certifications.
- Expanded pursuit of outside grant funding to improve public-safety capability and
reduce pressure on local resources.
- Strengthened community engagement through local events, youth and family
outreach, drug take-back efforts, literacy initiatives and other partnerships.
- Continued regional mutual-aid and specialty partnerships that extend Gig Harbor
Police Department (GHPD) capability and improve interoperability.

Budget Overview

62

Page 73 of 153

City of Gig Harbor, Washington
-

2027-2028 Biennial Budget

Advanced internal systems supporting professional standards, property/equipment
accountability, use-of-force review and asset-forfeiture tracking.
Recorded two use-of-force incidents across 12,511 calls for service in 2025.

2027 – 2028 Goals
- Sustain dependable patrol response, investigative capacity and public-safety
service.
- Preserve WASPC accreditation while strengthening ongoing policy, training and
compliance documentation.
- Improve centralized tracking of training, certifications, equipment, expiration dates
and accreditation proofs.
- Support advanced training, instructor development, leadership development,
succession planning and employee retention.
- Maintain a planned replacement cycle for patrol vehicles, specialty equipment and
mission-critical technology.
- Expand the use of reliable workload and performance data to support staffing,
budgeting and operational decisions.
- Pursue state, federal and private grant opportunities that offset local costs and
expand capability.
- Strengthen community engagement and partnerships that support prevention,
education and problem solving.
- Pursue Washington State HB 2015 funding to support one additional entry-level
officer and a co-responder, as reflected in the H3 budget. Additional funding has
been requested for body-worn cameras and a patrol vessel, although funding for
these items is considered less likely.
Long – Range Plans
- Evaluate operational efficiencies, alternative funding sources and technologies that
improve service and accountability.
- Develop recruiting, retention and succession-planning strategies that support longterm staffing stability.
- Analyze workload, response, overtime, leave and training data to evaluate future
staffing needs and actual deployment capacity.
- Maintain a sustainable vehicle and equipment replacement program based on
service life, maintenance history, operational need and total cost of ownership.
- Strengthen internal systems that improve audit readiness, accreditation compliance,
training records and professional standards.
- Preserve regional partnerships and mutual-aid relationships that provide specialized
capabilities beyond those practical for a small municipal agency to maintain
independently.

Budget Overview

63

Page 74 of 153

City of Gig Harbor, Washington

2027-2028 Biennial Budget

Community Development – Planning / Building

The Community Development Department guides the City’s growth, safety, and
long-range planning. Through building and fire safety, land use planning, and code
enforcement, the department ensures that development is safe, consistent with
community goals, and compliant with local and state regulations. The key functions of
these three divisions are as follows.
Building & Fire Safety Division
- Provide policy guidance on building, fire, and life safety issues
- Promote community health and safety by providing information and education on
matters related to building construction; fire and life safety.
- Review, permit, and inspect construction to ensure safe, durable development
consistent with GHMC Title 15.
- Enforce the State Fire Code and manage fire prevention permitting and inspection
programs.
- Coordinate with partner jurisdictions and regulators and represent the community’s
interests through participation in local, state and regional code development
activities.
- Apply and adhere to historic-structure codes to preserve the City’s heritage and
support sustainable development.
Planning Division
- Provide professional policy and planning guidance to city leadership and advisory
boards.
- Lead long-range planning efforts, including land use, housing, economic
development, climate resiliency, and capital facility planning.
- Process land use and environmental permits in accordance with the City of Gig
Harbor’s land use and environmental review process for private development and
public capital projects.
- Support public meetings and decision-making bodies, including the Design Review
Board and Hearing Examiner.
- Review development in the Urban Growth Area and coordinate inter-jurisdictional
planning and Growth Management Act activities.
- Manage population data reporting, annexation guidance, and updates to the Gig
Harbor Municipal Code.
- Develop, submit, track, and administer local, state, and federal grants specific to the
department’s functions.
Code Enforcement
- Provide policy guidance on code enforcement practices and amendments.
- Ensure compliance with zoning, building, shoreline, critical areas, and other
municipal codes through inspections and enforcement actions. Conduct or assist
with inspection of dangerous buildings and assist with coordinating the
condemnation process as needed.

Budget Overview

64

Page 75 of 153

City of Gig Harbor, Washington
-

2027-2028 Biennial Budget

Engage and educate residents, businesses, and community groups on city codes
and regulations.
Coordinate enforcement activities with city departments and other agencies to
maintain safety, livability, and consistent regulatory practices.

Budget Overview
2027 Budget

2028 Budget

919,814
299,677
5,840
71,650
15,364

1,579,183
515,948
24,750
300,450
64,473

1,670,555
547,225
24,750
330,150
64,473

2,831,500

1,312,345

2,484,804

2,637,154

2,831,500

1,312,345

623,697
3,108,501

648,668
3,285,822

2024 Actual

2025 Actual

2026 Budget

Salaries & Wages
Personnel Benefits
Supplies
Services & Charges
Capital Outlay

1,171,342
406,445
11,153
488,131
-

1,257,823
430,812
7,432
431,936
10,477

1,613,500
653,600
24,000
522,100
18,300

Total Expenses

2,077,071

2,138,479

2,077,071

2,138,479

Cost Allocation
Reimbursement
Net Department Cost

2026 YTD

2025-2026 Highlights
- Adopted updated Comprehensive Plan for the 2024-2044 planning period.
- Adopted and updated Capital Facilities Plan including the Connect the Gig
transportation plan.
- Adopted updated Zoning Map and density allowances for consistency with the
updated Comprehensive Plan.
- Adopted updates to permit processing timelines to improve timeliness of permit
review and approval.
- Adopted code amendments applying to Accessory Dwelling Units (ADUs) consistent
with new state statutes.
- Developed a draft Climate Resilience Element for future inclusion in the
Comprehensive Plan.
- Completed the Finholm/Downton Parking Study to inform future decisions regarding
parking opportunities in the Waterfront District.
- Developed a Multi-Family Tax Exemption (MFTE) process to incentivize workforce
housing for future Council consideration.
- Adopted updated Critical Areas Code based on best available science for protection
on environmental features from impacts of new development.
- Adopted updates to Sign Code to remove inconsistencies and improve clarity of
requirements for temporary signage in right-of-way.
- Processed land use, environmental and building permits meeting all required
timelines.
- Held public hearings for Design Review Board and Hearing Examiner to ensure
public comment in the permitting process.
- Contracted with two third-party building inspection and plan review firms to provide
as needed services during high permit volumes or staffing shortages.

Budget Overview

65

Page 76 of 153

City of Gig Harbor, Washington
-

2027-2028 Biennial Budget

Filled key vacancies in all department divisions and facilitated training to replace lost
capacity and experience.
Solicited and provided guidance on filling vacancies on multiple city advisory
commissions including the Planning Commission, Design Review Board and Historic
Preservation Commission.
Coordinated with Public Works on security improvements to Building A.
Assisted Public Works in the design and construction of capital facilities projects in
parks and utilities.
Provided comprehensive staff availability in-person, over the phone and virtually
maintaining high-quality customer service to permit applicants and the general
public.

2027-2028 Goals
- Complete updates to City Code regarding housing diversity, childcare opportunities,
parking standards, design review, subdivision process and other amendments to
improve clarity and consistency.
- Public engagement and development of a draft Judson Subarea Plan.
- Conduct a feasibility, siting and design study for future community meetings and
event space.
- Update the city’s shoreline master program for consistency with current information
and state direction.
- Present Climate Resilience Element for Council consideration.
- Further the findings of the Finholm / Downtown District Parking Study, including
shared parking opportunities, bicycle facilities and wayfinding.
- Work with private development community to seek opportunities for public benefits in
proposed residential, commercial and employment projects.
- Continue to scan/digitize historic permit records for ease of access to staff and the
public.
- Continued focus on staff professional development through access to training and
education.
- Explore emerging AI technologies to improve the quality and comprehensiveness of
permit applications to speed review and approval.
- Expand the regular use of the SmartGov Portal and Dashboard for permit
management and data reporting.
- Assess and propose incentive programs for affordable housing including fee waivers
and expedited permitting of eligible projects.
- Collaborate with the Public Works Department to reimagine our lobby space to
improve customer experience and access to information and help.

Budget Overview

66

Page 77 of 153

City of Gig Harbor, Washington

2027-2028 Biennial Budget

Parks

The Parks Operating fund is responsible for providing resources to operate and
maintain a variety of quality outdoor recreational opportunities and facilities for the
citizens of Gig Harbor and visitors. Our parks help to enhance small town character and
preserve historic land and structures while growing responsibly. Additionally, our park
spaces and facilities help to provide a safe, healthy and inclusive space for the
community. Staff provide services for acquisition, development, planning, maintenance,
and enhancement of public spaces. This function addresses maintenance and support
for:
- Nearly 207 acres of park land and natural areas and 18.2 miles of trails.
- Street trees, roundabouts, street planters, and landscape improvements.
- The City’s special event permit process and events such as Maritime Gig Festival,
weekly summer concerts at Skansie Brothers Park, weekly farmer’s markets, the
annual holiday tree lighting ceremony, National Night Out, various runs, and other
cultural and community events.
- Park reservations
- Lease management of city-owned buildings and properties.
- Planning, managing and preparing for the future at city-owned parks, natural areas
and docks including policy edits, research, municipal code edits, preparation of
resolutions and ordinances.
The goals and long-range plans for this fund meet the city’s strategic plan priorities by
ensuring a sustainable future for public services and facilities.
Budget Overview
2024 Actual

2025 Actual

2026 Budget

Salaries & Wages
Personnel Benefits
Supplies
Services & Charges
Capital Outlay

605,119
283,423
107,030
412,032
123,362

663,634
287,110
103,865
407,296
90,999

709,600
345,550
217,000
484,900
258,200

Total Expenses

1,530,967

1,552,904

1,530,967

1,552,904

Cost Allocation
Reimbursement
Net Department Cost

2026 YTD

2027 Budget

2028 Budget

472,768
202,385
64,211
224,560
225,885

773,614
371,482
141,000
461,225
166,876

814,764
389,679
126,500
426,725
106,222

2,015,250

1,189,809

1,914,197

1,863,890

2,015,250

1,189,809

234,228
2,148,425

243,183
2,107,073

2025 – 2026 Highlights
- Install native trees and shrubs at various parks, streetscapes and other City
grounds.
- Per PROS Plan, identify priorities and processes to guide the City’s land
conservation interests.
- Develop Open Space Management Plan(s): Identify public lands and conserved
critical lands for coordinated management approaches.

Budget Overview

67

Page 78 of 153

City of Gig Harbor, Washington
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2027-2028 Biennial Budget

Start a program to replace fixtures and amenities at public restrooms to include hand
dryers, sinks/faucets, toilets and urinals. This will standardize what components we
use, while updating fixtures.
Start a program to replace aging aggregate surfaced drinking fountains that do not
offer bottle filling.
Start a program to replace outdated and broken picnic tables and benches around
town in parks and streetscapes. We will attempt to standardize the furniture as we
do so.
Start a program to replace worn out trash receptacles and standardize the look of
trash receptacles.
Purchase and outfit a second standard duty truck with a Dumper Dogg bed for use in
parks and restroom cleaning activities.
Replace lawn mowers in our fleet with more robust equipment that can handle the
heavy use seasonally. Currently over half of our mower fleet is 10+ years old.
Install Security Cameras at Doris Heritage Park that works with our Genetec access
control system.

2027 – 2028 Goals
- Install native trees and shrubs at various parks, streetscapes and other City
grounds.
- Replace outdated booster pumps and controls for irrigation in the Point Fosdick area
from 56th to Olympic Drive.
- Update the 2022 PROS Plan for adoption in 2028, per RCO requirements. This will
involve extensive public processes and assessment of current facilities to determine
desired park improvements over the next six-year planning period.
- Continue implementation of txʷaalqəł Conservation Area property management
plans
- Open and operate the Commercial Fishing Homeport, becoming the first city in
Washington to operate such a facility. This include creating operating procedures,
moorage management, and record keeping for the facility. Staff is hoping to earn
Clean Marina Washington accreditation.
- Work with Rotary to implement tree donation program.
- Continue the program to replace fixtures and amenities at public restrooms to
include hand dryers, sinks/faucets, toilets and urinals. This will standardize what
components we use, while updating fixtures.
- Update video monitoring at Ancich, Skansie Brothers Park, and Crescent Creek
Park, to standardize and remove on premise storage. These cameras are mostly
over 10-year-old systems.
- Continue program to replace aging aggregate surfaced drinking fountains that do not
offer bottle filling.
- Resurface the pebble flex surface with artificial turf or other suitable surface at
Crescent Creek Park, including relocating the sand box play feature. The sand
continues to cause early failure of surfacing.
- Continue the program to replace worn out trash receptacles and standardize the
look of trash receptacles.
Budget Overview

68

Page 79 of 153

City of Gig Harbor, Washington
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2027-2028 Biennial Budget

Replant and reclaim many areas at the Civic Center Green that have become grass
as plants have died or been removed. Replant with native plants that match the
original landscape design.
Install a kayak launch on existing dock.
Implement a new volunteer program with more frequent work parties overseen by
parks commissioners.
Implement Civic Rec software for online park reservations and payments

Budget Overview

69

Page 80 of 153

City of Gig Harbor, Washington

2027-2028 Biennial Budget

City Buildings

The City Buildings function is to maintain, preserve and enhance city buildings,
including leased buildings within City parks, in accordance with city codes and
community standards. This will provide a safe, pleasant, attractive, and productive
environment for city activities, for both the public and tenants. (Note: Grounds
maintenance and improvements around city buildings are incorporated under the Parks
Operating and Parks Development Funds.) The goals and long-range plans for this
fund meet the city’s strategic plan priorities by ensuring a sustainable future for public
services and facilities. Building capital expenses are shown in fund 121.
Budget Overview
2027 Budget

2028 Budget

157,907
44,184
45,395
100,417
75,640

186,672
62,280
129,000
251,250
15,144

197,307
65,051
124,000
251,630
5,144

523,606

423,544

644,346

643,132

523,606

423,544

(120,854)
523,492

(122,541)
520,590

2024 Actual

2025 Actual

2026 Budget

Salaries & Wages
Personnel Benefits
Supplies
Services & Charges
Capital Outlay

162,264
54,304
33,733
135,190
1,118,143

220,282
64,413
37,029
164,342
86,367

226,000
92,350
48,925
143,831
12,500

Total Expenses

1,503,634

572,433

1,503,634

572,433

Cost Allocation
Reimbursement
Net Department Cost

2026 YTD

2025– 2026 Highlights
Improve the management and maintenance of the city’s brass key mechanisms and
inventory. This includes purchasing management software to more securely and
better organize and manage the city’s brass keys and purchase a key cutter
- Install a new dust collection system at the Public Works Wood Shop to improve
safety and working conditions.
- Contract to have the Gig Harbor Civic Center Fire Alarm Control Panel upgraded as
well as inert gas suppression added to the server room in building B.
- Replace restroom amenity fixtures in the Civic Center as well as other staffed City
buildings, such as WWTP admin building and the PW Operations building.
- Replace Hot Water heater in Police Department Building.
- Contract to have the roof cleaned at Eddon Boat Shop Building.
- Completed HVAC contract with MacDonald Miller for the upgrades at the Civic
Center.
-

2027 – 2028 Goals
- Improve the management and maintenance of the city’s brass key mechanisms and
inventory. Last year we purchased the equipment and license for a new key
structure. This next two years we will roll out updated locks and keying to multiple
department and public buildings, increasing security and access.

Budget Overview

70

Page 81 of 153

City of Gig Harbor, Washington
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2027-2028 Biennial Budget

Replace the entire security fencing around the Operations Center. This fence was
installed decades ago and has sustained significant damage in its life due to downed
trees and limbs.
Replace a hot water heater in Building B of the Civic Center.
Update the original intrusion system at the Civic Center, add better detection devices
and also install Cameras at the entrances and public spaces of the Civic Center for
enhanced security.
Update the security of the Wastewater Treatment Facility Campus. Adding cameras
and access control to all buildings on this campus.
Several on-call contracts will be advertised in this budget cycle to aid in maintenance
of the Cities buildings and campuses.
Multiple departments have requested evaluations or changes to the workstations of
those departments. Part of the budget will be to identify and replace ageing furniture
and amenities in these department areas.

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City of Gig Harbor, Washington

2027-2028 Biennial Budget

Public Works

The Public Works Department is responsible for a wide variety of infrastructure services
to the public. Primarily, this involves streets, storm drains, potable water, wastewater,
parks and recreation, building maintenance, and lighthouse maintenance and meets the
city’s strategic plan priorities by ensuring a sustainable future for public services and
facilities. These services are generally provided by three divisions – Administration,
Operations, and Engineering. Below is a more detailed description of each
section’s function under the Public Works umbrella.
Operations
The Operations Division utilizes General fund revenues along with enterprise funds to
maintain and operate the city’s infrastructure, including streets, storm drains, parks,
water utility, building maintenance, wastewater, and city-owned equipment. This
requires coordination with multiple jurisdictions and of staff to meet the needs of the city.
The Operations Division is a collection of solutions-oriented and nimble staff that
perform routine maintenance while also responding to emergency situations.

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City of Gig Harbor, Washington

2027-2028 Biennial Budget

Public Works – Administration

The Administration Division of the Public Works Department is responsible for a wide
variety of functions that support the management and delivery of infrastructure services
to the public. The division supports the City's foundational pillar of ensuring a
sustainable future for public services and facilities. It also supports the City's strategic
priorities by making connections with the community and recognizing the impact these
services and facilities have on economic vitality and housing costs.
The division's primary functions include budget development, reviewing revenues and
fees, management of the City's rights-of-way and properties, consistency in capital
planning, Geographic Information Systems (GIS) for the entire City, parks management,
and serving as a central point of coordination for City facilities among City
Administration, the City Council, and the public.
Budget Overview
2025 Actual

2024 Actual

2026 Budget

2026 YTD

2027 Budget

2028 Budget
664,629
232,171
116,500
177,400
14,861

Salaries & Wages
Personnel Benefits
Supplies
Services & Charges
Capital Outlay

-

-

-

-

615,691
216,934
119,500
190,300
14,861

Total Expenses

-

-

-

-

1,157,286

1,205,562

-

-

-

-

813,930
1,971,217

841,039
2,046,601

Cost Allocation
Reimbursement
Net Department Cost

Public Works Administration expenses were previously dispersed throughout enterprise
funds, capital funds, special revenue funds and the general fund, so it has no
independent budget history. We are utilizing staffing levels and various workload metrics
to allocate these costs back to the benefiting funds. See the Cost Allocation section for
additional explanation.
2025–2026 Highlights
- Managed multiple right-of-way vacations as requested by property owners. This
process required coordination between staff, property owners, and legal counsel.
- Managed the assessment of Public Works-related fees, including review fees,
impact fees, and general facility charges.
- Completed and began implementing the Operations Division staffing study to
compare the desired levels of service with staffing levels (FTEs) and the
organization of positions. Coordinated with the Human Resources Department to
adjust position job descriptions and hire staff based on the outcome of the study.
- Worked with a consultant to perform a utility rate study for the City's water,
wastewater, and stormwater utilities. Prepared and discussed tiered water rate
options and presented proposed utility rate adjustments to the City Council and the
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City of Gig Harbor, Washington

-

2027-2028 Biennial Budget

general public. Provided multiple opportunities for public engagement and input
regarding the proposed utility rate adjustments.
Managed the transfer of the Shore Acres Water Company to the City of Gig Harbor.
Coordinated GIS layer management, including adding new layers, updating existing
layers, and implementing process improvements.
Tracked and managed expenses throughout the 2025–2026 biennium and
developed mid-biennial budget requests.
Reviewed and processed multiple franchise agreement applications and provided
recommendations to the City Council.

2027–2028 Goals
- Increase the positional accuracy of City assets within GIS by utilizing high-accuracy
Global Positioning System (GPS) technologies.
- Develop additional GIS applications to support construction, police, tourism, utilities,
and other specific uses as identified.
- Develop standards for GIS data management in conjunction with the update to the
Public Works Standards to standardize how the City obtains and imports data from
other agencies.
- Continue to review, process, and present to the City Council for consideration
various agreements administered by the Public Works Department, including
franchise agreements, utility extension agreements, and right-of-way vacations.
Long Range Plans
- Use GIS to gather and update Public Works data such as infrastructure and utilities,
engineering designs, asset management, work order tracking, and citizen reporting.
- Implement GIS standards, including standard operating procedures for obtaining,
managing, and updating GIS data.

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City of Gig Harbor, Washington

2027-2028 Biennial Budget

Public Works – Engineering

The Engineering Division of the Public Works Department is responsible for a wide
variety of infrastructure services for the public. The division supports the City's
foundational pillar of ensuring a sustainable future for public services and facilities. It
also supports the City's strategic priorities by recognizing the impact these services and
facilities have on economic vitality and housing costs.
The division's primary work involves designing, constructing, and implementing
standards for the City's streets, storm drains, potable water, wastewater, parks,
grounds, and facilities. This includes overseeing permit reviews and inspections for
private development, located both in the City's right-of-way and on private property, that
affects the City's public infrastructure. This work requires the Engineering Division to
perform studies to identify and implement improvements while also developing and
implementing long-range strategic plans for City infrastructure.
Budget Overview
2024 Actual

2025 Actual

2026 Budget

2026 YTD

2027 Budget

2028 Budget
1,558,177
653,413
17,900
24,380
61,904

Salaries & Wages
Personnel Benefits
Supplies
Services & Charges
Capital Outlay

-

-

-

-

1,473,092
615,409
17,900
43,080
61,904

Total Expenses

-

-

-

-

2,211,384

2,315,774

-

-

-

-

4,025,589
6,236,973

4,170,903
6,486,677

Cost Allocation
Reimbursement
Net Department Cost

Public Works Engineering expenses were previously dispersed throughout enterprise
funds, capital funds, special revenue funds and the general fund, so it has no
independent budget history. We are utilizing time tracking on specific projects to charge
these services back to the benefiting funds.
2025–2026 Highlights
- Reviewed and processed multiple utility extension agreement applications and
provided recommendations to the City Council on these agreements.
- Led the City's annual utility coordination meeting to provide opportunities for two-way
dialogue between the City and franchise holders regarding upcoming capital
projects.
- Reviewed and commented on Public Works-related items for multiple private
development projects. This included inspecting private development projects that
connect to or impact Public Works-related facilities.
- Managed the assessment of Public Works-related fees, including review fees,
impact fees, and general facility charges.
- Reviewed and inspected right-of-way encroachment permits.
Budget Overview

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City of Gig Harbor, Washington
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2027-2028 Biennial Budget

Performed hundreds of hours of mandated safety training and courses to support
staff continuing education requirements.
Maintained capital project schedules and supported public outreach for City capital
projects. This included design, consultant management, permitting, and coordination
of easement and/or right-of-way acquisitions for these capital projects.

2027–2028 Goals
- Update the City's 2018 Public Works Standards.
- Reduce Public Works review times for private development projects.
- Successfully design, permit, and construct the City's capital projects as outlined in
the approved City budget.
Long- Range Plans
- Maintain established partnerships and develop additional partnerships with local and
federal agencies.
- Review plans for and perform construction inspections of the public portions of
private development projects to ensure they meet the City's standards.

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City of Gig Harbor, Washington

2027-2028 Biennial Budget

Fleet and Equipment Operating - Fund 502

The Fleet Internal Service Fund centralizes the maintenance and repair of the City’s
vehicles and equipment. Its purpose is to ensure City vehicles and equipment are
maintained to a high standard, remain safe and reliable, and are available when needed
to support City operations.
The fund consolidates fleet-related maintenance costs in one place, including labor,
parts, repairs, and other operating costs. These costs are then charged back to the
departments and funds that use and benefit from the vehicles and equipment. This
approach provides a clearer picture of the true cost of operating the City’s fleet and
helps ensure those costs are distributed to the appropriate programs and services.
The 2027–2028 biennium is the first budget cycle in which the City is operating a
dedicated Fleet Internal Service Fund. As a result, there are no prior-year budget or
actual expenditure amounts available for comparison.
2026 Budget

2025 Actual

2024 Actual

2026 YTD

2027 Budget

2028 Budget
112,273
53,770
53,000
89,700
308,743

Salaries & Wages
Personnel Benefits
Supplies
Services & Charges
Capital Outlay

-

-

-

-

105,572
50,610
53,000
89,700
-

Total Expenses

-

-

-

-

298,882

2025 – 2026 Highlights
- Implemented vehicle leasing program.
- Purchased additional new street sweeper.
- Purchased replacement Vactor truck.
- Replaced a total of twenty-six Public Works and Community Development vehicles.
- Replaced eight vehicles with fully electric models.
- Replaced nine vehicles with hybrid models.
- Purchased new skid steer loader.
- Updated preventative maintenance program.
- Implemented an internal vehicle and equipment maintenance request system for staff
to submit issues.
- Implemented daily vehicle safety inspection program on all Public Works vehicles.
- Replaced two five-yard dump trucks
2027–2028 Goals
- Continue to replace aging vehicles with more fuel efficient electric or hybrid
options when feasible.
- Continue to enhance preventative maintenance program to help minimize
unforeseen repair expenses.
- Continue work on city vehicle fueling station to be located at Operations Center.

Budget Overview

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City of Gig Harbor, Washington

2027-2028 Biennial Budget

Special Revenue Fund Type

Special revenue funds are used to account for revenues derived from specific taxes or
other sources that are designated to finance particular activities of the city.
Special Revenue Funds the City maintains are the following:
-

Street operating
Street Capital
Senior Services
Pedestrian Safety
State Drug Investigation
Federal Drug Investigation
Hotel – Motel Tax
Public Art Capital Projects
Parks Development
Strategic Reserve
Equipment Reserve
City Building Capital
Capital Development
Capital Improvement
Impact Fee Trust
Hospital Benefit Zone
Transportation Benefit District

Budget Overview

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City of Gig Harbor, Washington

2027-2028 Biennial Budget

Street Operating - Fund 101

The function of the Streets Operating fund is to ensure a sustainable future for public
services and facilities by providing a safe, functional, efficient, and aesthetic
transportation system for the movement of people, goods, and services through efficient
maintenance and construction of improvements to the city's streets, pedestrian
corridors, and bicycle routes. The emphasis as a "pedestrian friendly" community is on
preservation and enhancement of pedestrian access in the city's residential and
commercial areas. The goals and long-range plans for this fund meet the city’s strategic
plan priorities by ensuring a sustainable future for public services and facilities.
Budget Overview
2027 Budget

2028 Budget

(60,277)

-

38,920

20,000
242,470
70,700
39,996

19,460
164,824
72,902
2,109

20,000
240,000
30,000
-

20,000
238,000
30,000
-

2,000,000

3,050,000

1,400,000

2,017,500

1,817,000

-

-

33,302

-

-

3,319,670

2,346,367

3,423,166

1,692,596

2,307,500

2,105,000

3,147,465

3,772,622

2,880,899

3,818,533

1,632,319

2,307,500

2,143,920

Salaries & Wages
Personnel Benefits
Supplies
Services & Charges
Capital Outlay
Debt Service

1,234,645
507,085
298,290
425,011
136,320
11,583

1,389,000
577,150
577,550
663,005
170,550
-

1,397,723
543,798
416,654
492,002
90,999
-

1,443,800
627,850
572,550
527,305
321,800
-

1,003,949
383,602
133,737
280,942
255,486
-

372,394
156,548
389,500
707,100
258,020
-

393,107
164,840
389,500
573,205
147,211
-

Total Direct Expenditures

2,612,934

3,377,255

2,941,176

3,493,305

2,057,717

1,883,562

1,667,863

-

-

-

-

-

385,018
-

396,752
-

2,612,934

3,377,255

2,941,176

3,493,305

2,057,717

2,268,580

2,064,615

534,531

395,367

(60,277)

325,228

(425,397)

38,920

79,305

2024 Actual

2025 Budget

2025 Actual

2026 Budget

Beginning Fund Balance

767,261

452,952

534,531

395,367

Revenues
Licenses & Permits
Intergovernmental Revenue
Charges for Goods & Services
Miscellaneous Revenue

32,170
247,938
78,178
21,919

20,000
240,070
70,000
39,600

33,540
244,301
55,715
12,812

2,000,000

2,950,000

-

-

Total Revenues

2,380,204

Total Resources

Other Sources
Transfers In
Other Financing Sources

2026 YTD

Expenditures

Cost Allocation Charges
Transfers Out
Total Uses
Ending Fund Balance

2025 – 2026 Highlights
- Installed battery backup system for the Point Fosdick/Olympic Drive traffic signal.
- Installed battery backup system for the Point Fosdick/56th St traffic signal.
- Performed routine sidewalk inspections and repairs.
- Developed and implemented a roadway shoulder maintenance program.
- Developed and implemented a snow/ice removal route to maximize efficiency.
- Repaired or replaced approximately 248 streetlights.
- Hired a consultant on an “On-Call” basis for arborist evaluation services.
- Inspected or replaced over 1,400 traffic markings.
- Managed and maintained the electric vehicle charging stations for public and city
use.

Budget Overview

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City of Gig Harbor, Washington
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2027-2028 Biennial Budget

Installed new electric vehicle charging station at Public Works Operation Center.
Inspected and maintained 62 lighted crosswalk systems at roundabouts and midblock crossings.
Updated street sweeping routes and work orders to make

2027 – 2028 Goals
- Install new streetlights along Olympic Drive between Point Fosdick and 50th St.
- Purchase and install new battery backup system for 56th and Olympic Drive traffic
signal.
- Coordinate with WSDOT to replace/upgrade existing traffic signal controllers in the
Olympic Drive and Point Fosdick corridor.
- Hire a consultant to help the city establish water line easements where our water
mains go through private properties.
- Hire a consultant on an “On-Call” basis for arborist evaluation services.
- Hire a contractor on an “On-Call” basis for emergency tree removal services.
- Purchase and install new LED streetlight luminaires to replace existing ones that are
aging.
- Replace sections of sidewalk around the city to maintain safety and accessibility
adhering to ADA requirements.
- Complete approximately four miles of shoulder maintenance, grading, and ditch
cleaning.
- Prioritize pavement preservation utilizing data from the 2026 Cyvl Pavement
Inspection.

Budget Overview

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City of Gig Harbor, Washington

2027-2028 Biennial Budget

Street Capital – Fund 102

This fund accumulates resources for major street capital projects and accounts for their
design, permitting, infrastructure purchasing, construction, and financing. Sources of
revenue for the fund includes the city’s General Fund, Transportation Benefit District,
Transportation impact fees, Hospital Benefit Zone, grants, and private contributions. The
goals and long-range plans for this fund meet the city’s strategic plan priorities by
ensuring a sustainable future for public services and facilities.
Budget Overview
2024 Actual

2025 Budget

2025 Actual

2026 Budget

2027 Budget

2028 Budget

Beginning Fund Balance

368,448

129,792

1,119,169

2,032,610

2026 YTD
836,391

-

30,516

Revenues
Intergovernmental Revenue
Miscellaneous Revenue

284,215
7,404

1,250,000
1,388,155

2,094,191
46,625

-

585,604
19,319

3,921,747
-

2,800,000
-

Other Sources
Transfers In

6,516,700

8,977,463

1,426,000

4,884,382

-

5,113,549

8,803,618

Total Revenues

6,808,319

11,615,618

3,566,816

4,884,382

604,924

9,035,296

11,603,618

Total Resources

7,176,766

11,745,410

4,685,985

6,916,992

1,441,314

9,035,296

11,634,134

284,192
107,189
1,085
5,665,132
6,057,598

314,100
118,700
10,120,000
10,552,800

278,658
103,125
3,455,407
3,837,190

326,500
129,400
6,955,000
7,410,900

195,363
70,900
773,326
1,039,588

553,516
8,451,264
9,004,780

964,135
10,670,000
11,634,135

-

-

12,404

-

-

-

-

Total Uses

6,057,598

10,552,800

3,849,594

7,410,900

1,039,588

9,004,780

11,634,135

Ending Fund Balance

1,119,169

1,192,610

836,391

(493,908)

401,726

30,516

(1)

Expenditures
Salaries & Wages
Personnel Benefits
Services & Charges
Capital Outlay
Total Direct Expenditures
Cost Allocation Charges
Transfers Out

Budget Overview

81

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City of Gig Harbor, Washington

2027-2028 Biennial Budget

Senior Services – Fund 103

This fund was established to provide funding for senior facilities and activities.
Budget Overview
2024 Actual

2025 Budget

2025 Actual

2026 Budget

2027 Budget

2028 Budget

Beginning Fund Balance

212,845

223,490

224,006

231,312

2026 YTD
233,443

240,382

247,582

Revenues
Miscellaneous Revenue

11,160

7,822

9,438

6,939

4,120

7,200

-

-

Other Sources
Transfers In

-

-

-

-

-

-

Total Revenues

11,160

7,822

9,438

6,939

4,120

7,200

-

Total Resources

224,006

231,312

233,443

238,251

237,563

247,582

247,582

Total Direct Expenditures

-

-

-

-

-

-

-

Cost Allocation Charges
Transfers Out

-

-

-

-

-

-

-

Total Uses

-

-

-

-

-

-

-

224,006

231,312

233,443

238,251

237,563

247,582

247,582

Expenditures

Ending Fund Balance

Budget Overview

82

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City of Gig Harbor, Washington

2027-2028 Biennial Budget

Pedestrian Safety – Fund 104

This fund was established to provide funding for construction of pedestrian safety
facilities, such as crosswalks, flashing crosswalks, sidewalks, and other pedestrian
facilities.
Budget Overview
Beginning Fund Balance
Revenues
Miscellaneous Revenue
Other Sources
Transfers In

2024 Actual

2025 Budget

2025 Actual

2026 Budget

2027 Budget

2028 Budget

229,745

124,599

6,079

-

2026 YTD
6,335

6,447

(0)

7,334

4,361

256

-

112

200

200

-

-

-

-

-

-

-

Total Revenues

7,334

4,361

256

-

112

200

200

Total Resources

237,079

128,960

6,335

-

6,447

6,647

200

Expenditures
-

-

-

-

-

-

-

Cost Allocation Charges
Transfers Out

231,000

128,960

-

-

-

6,647

200

Total Uses

231,000

128,960

-

-

-

6,647

200

6,079

-

6,335

-

6,447

(0)

(0)

Total Direct Expenditures

Ending Fund Balance

Budget Overview

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City of Gig Harbor, Washington

2027-2028 Biennial Budget

State Drug Investigation - Fund 105

Proceeds from the sale of property seized during drug investigations and forfeited
pursuant to state law are accumulated in this fund. These monies are used to pay for
overtime, equipment, and supplies related to drug investigations and related activities.
Budget Overview
Beginning Fund Balance
Revenues
Miscellaneous Revenue
Other Sources
Transfers In

2024 Actual

2025 Budget

2025 Actual

2026 Budget

2027 Budget

2028 Budget

17,122

19,068

18,020

19,735

2026 YTD
18,780

19,372

(0)

898

667

759

592

331

600

600

-

-

-

-

-

-

-

Total Revenues

898

667

759

592

331

600

600

Total Resources

18,020

19,735

18,780

20,327

19,111

19,972

600

Services & Charges
Total Direct Expenditures

-

-

-

-

-

19,972
19,972

600
600

Cost Allocation Charges
Transfers Out

-

-

-

-

-

-

-

Expenditures

Total Uses
Ending Fund Balance

Budget Overview

-

-

-

-

-

19,972

600

18,020

19,735

18,780

20,327

19,111

(0)

(0)

84

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City of Gig Harbor, Washington

2027-2028 Biennial Budget

Federal Drug Investigation - Fund 106

Proceeds from the sale of property seized during drug investigations and forfeited
pursuant to federal law are accumulated in this fund. These monies are used to pay for
overtime, equipment, and supplies related to drug investigations and related activities.
Budget Overview
Beginning Fund Balance
Revenues
Miscellaneous Revenue

2024 Actual

2025 Budget

2025 Actual

2026 Budget

7,868

7,273

5,592

4,523

312

250

236

250

2026 YTD

2027 Budget

2028 Budget

5,828

3,078

0

103

100

100

Other Sources
Transfers In

-

-

-

-

-

-

-

Total Revenues

312

250

236

250

103

100

100

Total Resources

8,180

7,523

5,828

4,773

5,931

3,178

100

2,588
2,588

3,000
3,000

-

3,000

-

3,178

100

3,000

-

3,178

100

-

-

-

-

-

-

-

Total Uses

2,588

3,000

-

3,000

-

3,178

100

Ending Fund Balance

5,592

4,523

5,828

1,773

5,931

0

0

Expenditures
Services & Charges
Total Direct Expenditures
Cost Allocation Charges
Transfers Out

Budget Overview

85

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City of Gig Harbor, Washington

2027-2028 Biennial Budget

Hotel-Motel Tax - Fund 107

Lodging tax is collected by the city upon nightly rentals of all types of lodging. Revenues
generated by this tax may be used for the following:
- Tourism promotion/marketing.
- Operation of a tourism promotion agency.
- Operation of a tourism-related facility owned or operated by a non-profit
organization.
- Operation and/or capital costs of a tourism-related facility owned by a municipality.
Lodging tax grants are awarded annually by council based on recommendations made
by the lodging tax advisory committee (LTAC). All lodging tax grant recipients (including
the city) are required to apply to LTAC for funding for the above uses. LTAC reviews the
applications and makes recommendations to council on whether an application should
be funded and how much the funding amount should be.
Budget Overview
2024 Actual

2025 Budget

2025 Actual

2026 Budget

2027 Budget

2028 Budget

1,185,604

450,589

979,899

490,189

816,128

671,338

691,438

530,670
50,338

523,829
15,771

529,090
30,014

529,067
14,706

306,116
11,688

530,000
20,100

530,000
20,100

Other Sources
Transfers In

-

-

Other Financing Sources

-

-

-

-

-

-

-

-

-

-

-

Total Revenues

581,008

-

539,600

559,104

543,773

317,804

550,100

550,100

Total Resources

1,766,612

990,189

1,539,003

1,033,962

1,133,932

1,221,438

1,241,538

Salaries & Wages
Personnel Benefits
Supplies
Services & Charges

3,137
1,154
39
782,383

500,000

722,875

500,000

408,061

530,000

530,000

Total Direct Expenditures

786,714

500,000

722,875

500,000

408,061

530,000

530,000

-

-

-

-

-

-

-

Total Uses

786,714

500,000

722,875

500,000

408,061

530,000

530,000

Ending Fund Balance

979,899

490,189

816,128

533,962

725,871

691,438

711,538

Beginning Fund Balance
Revenues
Taxes
Miscellaneous Revenue

2026 YTD

Expenditures

Transfers Out

Budget Overview

86

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City of Gig Harbor, Washington

2027-2028 Biennial Budget

Public Art Capital Projects - Fund 108

This fund, established in 2004, will be used to accumulate unspent appropriations of the
Arts Commission Project Support Program. These funds will be used for public art
capital projects as recommended by the arts commission and approved by city council.
Budget Overview
2024 Actual

2025 Budget

2025 Actual

2026 Budget

2027 Budget

2028 Budget

Beginning Fund Balance

26,622

28,028

28,018

29,009

29,198

30,068

0

Revenues
Miscellaneous Revenue

1,396

981

1,180

870

515

900

900

-

-

-

-

-

-

-

Other Sources
Transfers In

2026 YTD

Total Revenues

1,396

981

1,180

870

515

900

900

Total Resources

28,018

29,009

29,198

29,879

29,714

30,968

900

Capital Outlay
Total Direct Expenditures

-

-

-

-

-

30,968
30,968

900
900

Cost Allocation Charges
Transfers Out

-

-

-

-

-

-

-

Expenditures

Total Uses
Ending Fund Balance

Budget Overview

-

-

-

-

-

30,968

900

28,018

29,009

29,198

29,879

29,714

0

0

87

Page 98 of 153

City of Gig Harbor, Washington

2027-2028 Biennial Budget

Park Development - Fund 109

The resources accumulated through transfers from the General fund, park impact fees,
capital grants, and interest earnings have been used for the purchase and development
of civic properties. Park development is prioritized through the adopted Parks,
Recreation, and Open Space Plan and assists the city in meeting Growth Management
Act goals and is implemented through the annual budget process. The current
adopted PROS Plan identifies specific recommendations to meet the needs of the
growing community over the course of the next twenty years. The objectives outlined in
this fund will be implemented by the Public Works Department, managing the planning,
design, permitting, and construction of capital park projects. This fund would include
resources for city buildings that are (1) fully within city parks; and (2) not leased
buildings. The goals and long-range plans for this fund meet the city’s strategic plan
priorities by ensuring a sustainable future for public services and facilities.
Budget Overview
2024 Actual

2025 Budget

2025 Actual

2026 Budget

2027 Budget

2028 Budget

Beginning Fund Balance

272,773

-

665,157

-

2026 YTD
297,216

-

64,655

Revenues
Intergovernmental Revenue
Miscellaneous Revenue

966,978
3,710

1,167,000
549,820

199,820
4,060

4,098

(819)

4,000

4,000

Other Sources
Transfers In

3,646,000

8,008,000

4,476,200

-

-

4,930,231

2,132,284

Total Revenues

4,616,688

9,724,820

4,680,080

4,098

(819)

4,934,231

2,136,284

Total Resources

4,889,461

9,724,820

5,345,237

4,098

296,397

4,934,231

2,200,939

Salaries & Wages
Personnel Benefits
Supplies
Services & Charges
Capital Outlay

155,338
61,082
1,212
(271)
4,006,942

166,200
62,700
8,745,820

161,301
61,316
4,825,404

172,800
68,400
45,000

117,215
43,683
848,827

63,825
21,678
294,073
4,490,000

67,876
23,077
174,845
1,935,000

Total Direct Expenditures

4,224,303

8,974,720

5,048,021

286,200

1,009,725

4,869,576

2,200,798

-

119,500

-

-

-

-

-

4,224,303

9,094,220

5,048,021

286,200

1,009,725

4,869,576

2,200,798

665,157

630,600

297,216

(282,102)

(713,328)

64,655

141

Expenditures

Cost Allocation Charges
Transfers Out
Total Uses
Ending Fund Balance

2025 – 2026 Highlights
- Completed the construction of Gig Harbor Sports Complex Phase 1B/Doris Heritage
Park.
- Funded the city’s share of Phase 1B/Gig Harbor Sports Fields project led by the
YMCA.
- Achieved completion of design and permitting of the Ancich Waterfront Park’s
Commercial Fishing Homeport and began construction
- Completed trail development and signage for the Richard H. Shaw Loop Trail in the
txʷaalqəł Conservation Area

Budget Overview

88

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City of Gig Harbor, Washington
-

2027-2028 Biennial Budget

Completed tree removal project in Soundview Forest, implementing arborist
recommendations.
Completed the Crescent Creek Master Plan process, including developing phases
and construction costs for the phases.

2027– 2028 Goals
See 2025-26 Parks Capital Budget Appendix for funded projects.
Long – Range Plans
- Prioritize properties for improvements as historic-related grants are available,
including the Wilkinson Farm Barn and master plan for the park.
- Study the logistics and next steps toward developing Cushman Trail Phase 5 and
seek grant funding to build the preferred alignment of the Cushman Trail Phase 5
within the city limits.
- Expand park facilities for youth in new and redeveloped park properties, including
facilities for teens.
- Study and provide pedestrian trail opportunities along Harborview between the Old
Ferry Landing Park and the Pioneer intersection, enhancing access to the shoreline.
- Develop a master plan for Wilkinson Farm Park including plans for phased
improvements.
- Develop a master plan for Old Ferry Landing Park
- Develop new trails in the txʷaalqəł Conservation Area as identified in the property
management plans.
- Study and design where and how to accommodate BMX and/or pump track facility.
- Develop a funding plan and design for phases 2 and 3 of the Sports Complex.
- Remove the existing, dilapidated Grandview Forest restrooms and construct new
restrooms in a more strategic location on the Civic Center campus.
- Develop phases of Crescent Creek Park as identified in adopted master plan.

Budget Overview

89

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City of Gig Harbor, Washington

2027-2028 Biennial Budget

Strategic Reserve - Fund 111

The Strategic Reserve fund is established to insulate the city from revenue fluctuations,
economic downturns (“rainy days”), and other contingencies such as emergencies and
disasters, uninsured losses, and tax refunds.
A “rainy day” fund is limited by RCW 35A.33.145 to $0.375 per $1,000 of assessed
valuation. The target balance for the Strategic Reserve Fund should be the maximum
amount allowed.
Budget Overview
Beginning Fund Balance
Revenues
Miscellaneous Revenue

2024 Actual

2025 Budget

2025 Actual

2026 Budget

2027 Budget

2028 Budget

2,778,450

2,896,997

2,924,137

2,148,392

2,170,926

1,920,000

1,987,100

145,687

101,395

96,789

64,452

38,313

67,100

67,100

2026 YTD

Other Sources
Transfers In

-

-

-

-

-

-

-

Total Revenues

145,687

101,395

96,789

64,452

38,313

67,100

67,100

Total Resources

2,924,137

2,998,392

3,020,926

2,212,844

2,209,239

1,987,100

2,054,200

Expenditures
Total Direct Expenditures

-

-

-

-

-

-

-

Transfers Out

-

850,000

850,000

-

-

-

-

Total Uses

-

850,000

850,000

-

-

-

-

2,924,137

2,148,392

2,170,926

2,212,844

2,209,239

1,987,100

2,054,200

Ending Fund Balance

Budget Overview

90

Page 101 of 153

City of Gig Harbor, Washington

2027-2028 Biennial Budget

Equipment Reserve - Fund 112

The Equipment Replacement Reserve fund was established in order to provide the city
a method to save for significant purchases. This systematic savings process will level
out the financial peaks and valleys that come from replacing expensive vehicles and
equipment. This proposed fund is not intended to be an equipment rental fund, nor is it
intended to fully fund equipment or vehicle purchases at the time of acquisition. Rather,
this fund is intended to establish a reserve that will fund at least a portion of vehicles
and equipment as they are replaced, thereby reducing the expenditure spikes that can
otherwise occur. Only the General fund will contribute to this fund.
Budget Overview
2024 Actual

2025 Budget

2025 Actual

2026 Budget

2027 Budget

2028 Budget

Beginning Fund Balance

522,436

546,795

549,829

-

2026 YTD
5,907

6,012

6,212

Revenues
Miscellaneous Revenue

27,394

19,138

6,078

-

104

200

200

Other Sources
Transfers In

-

-

-

-

-

-

-

Total Revenues

27,394

19,138

6,078

-

104

200

200

Total Resources

549,829

565,933

555,907

-

6,012

6,212

6,412

Expenditures
Total Direct Expenditures

-

-

-

-

-

-

-

Transfers Out

-

565,933

550,000

-

-

-

-

Total Uses

-

565,933

550,000

-

-

-

-

549,829

-

5,907

-

6,012

6,212

6,412

Ending Fund Balance

Budget Overview

91

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City of Gig Harbor, Washington

2027-2028 Biennial Budget

City Building Capital – Fund 121
The City Building Capital fund is utilized to account for the capital costs of maintaining
city owned facilities that don’t have a direct public works nexus, like Civic Center,
Wilkinson Farmhouse, and the Masonic Lodge. Sources of funding include the General
Fund, REET Funds, and Enterprise Operating and Capital Funds. The
goals and long-range plans for this fund meet the city’s strategic plan priorities by
ensuring a sustainable future for public services and facilities.
Budget Overview
2027 Budget

2028 Budget

Beginning Fund Balance

2024 Actual
-

2025 Budget
-

2025 Actual
-

2026 Budget
1,150,000

2026 YTD
(475)

205,611

235,611

Revenues
Intergovernmental Revenue

-

800,000

-

-

-

-

800,000

Other Sources
Transfers In

-

1,522,500

88,602

-

-

592,000

1,240,000

Other Financing Sources

-

-

-

-

-

-

-

Total Revenues

-

2,322,500

88,602

-

-

592,000

2,040,000

Total Resources

-

2,322,500

88,602

1,150,000

(475)

797,611

2,275,611

Supplies
Capital Outlay
Total Direct Expenditures

-

1,172,500
1,172,500

8,462
80,615
89,077

-

0
49,467
49,467

562,000
562,000

2,040,000
2,040,000

Transfers Out

-

-

-

-

-

-

-

Total Uses

-

1,172,500

89,077

-

49,467

562,000

2,040,000

Ending Fund Balance

-

1,150,000

(475)

1,150,000

(49,942)

235,611

235,611

Expenditures

Budget Overview

-

92

Page 103 of 153

City of Gig Harbor, Washington

2027-2028 Biennial Budget

Capital Development / REET 1- Fund 301

This fund accounts for the proceeds of the first one-quarter percent of the locally
imposed real estate excise tax. State law restricts the use of these funds to financing
capital projects specified in the capital facilities plan element of a comprehensive plan.
The fund balance is available for acquisition of parks properties as identified by the city
council in the City of Gig Harbor Parks, Recreation, and Open Space Plan.
Budget Overview
Beginning Fund Balance
Revenues
Taxes
Miscellaneous Revenue

2024 Actual

2025 Budget

2025 Actual

2026 Budget

2027 Budget

2028 Budget

1,967,127

2,894,182

2,652,117

1,222,257

2026 YTD
3,070,375

4,276,513

3,258,057

556,673
128,343

503,279
112,718

543,973
128,511

508,312
47,096

637,724
61,919

520,000
128,300

520,000
128,300

Other Sources
Transfers In

-

-

-

-

-

-

-

Total Revenues

685,016

615,997

672,484

555,408

699,643

648,300

648,300

Total Resources

2,652,144

3,510,179

3,324,601

1,777,665

3,770,018

4,924,813

3,906,357

26
26

-

26
26

-

14

-

-

-

14

-

-

Transfers Out

-

2,276,500

254,200

-

-

1,666,755

740,000

Total Uses

26

2,276,500

254,226

-

14

1,666,755

740,000

2,652,117

1,233,679

3,070,375

1,777,665

3,770,004

3,258,057

3,166,357

Expenditures
Services & Charges
Total Direct Expenditures

Ending Fund Balance

Details of Planned Uses
Fund 301 accounts for the City’s first quarter-percent real estate excise tax. These
resources qualifying capital purposes recurring capital and preservation needs through
transfers to funds responsible for related projects.
Planned Use
Parks Maintenance – recurring share
Streets Maintenance – recurring share
Street Capital – recurring share
Park Development – recurring share
Commercial Fishing Homeport
Facilities Capital
Total Planned Uses

2027
2028
$130,000 $130,000
130,000 130,000
130,000 130,000
130,000 130,000
850,755
—
296,000 220,000
$1,666,755 $740,000

The budget assumes approximately $520,000 of new REET 1 revenue in each year of
the biennium, with accumulated resources from prior years also available to support the
planned uses shown above.

Budget Overview

93

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City of Gig Harbor, Washington

2027-2028 Biennial Budget

Capital Improvement / REET 2- Fund 305

This fund accounts for the proceeds of the second one-quarter percent of the locally
imposed real estate excise tax. The law governing the use of these funds is more
restrictive than for the first one-quarter percent. Permitted uses are defined as "public
works projects for planning, acquisition, construction, reconstruction, repair,
replacement, rehabilitation, or improvement of streets, roads, highways, sidewalks,
street and road lighting systems, traffic signals, bridges, domestic water systems, storm
and sanitary sewer systems, and planning, construction, reconstruction, repair,
rehabilitation, or improvement of parks”.
Budget Overview
Beginning Fund Balance
Revenues
Taxes
Miscellaneous Revenue

2024 Actual

2025 Budget

2025 Actual

2026 Budget

2027 Budget

2028 Budget

1,342,296

2,052,311

1,973,631

780,921

2,372,436

3,170,839

2,119,183

536,456
94,905

503,279
71,831

543,487
103,344

508,312
23,428

550,729
49,602

520,000
95,100

520,000
95,100

2026 YTD

Other Sources
Transfers In

-

-

-

-

-

-

-

Total Revenues

631,361

575,110

646,831

531,740

600,330

615,100

615,100

Total Resources

1,973,657

2,627,421

2,620,462

1,312,661

2,972,766

3,785,939

2,734,283

26
26

-

26
26

-

14
14

-

-

Transfers Out

-

1,771,500

248,000

-

-

1,666,755

1,104,074

Total Uses

26

1,771,500

248,026

-

14

1,666,755

1,104,074

1,973,631

855,921

2,372,436

1,312,661

2,972,752

2,119,183

1,630,209

Expenditures
Services & Charges
Total Direct Expenditures

Ending Fund Balance

Details of Planned Uses
Fund 305 accounts for the second quarter-percent real estate excise tax. These
revenues are restricted to eligible capital purposes established by RCW 82.46.035.
Planned Use
Parks Operating – recurring share
Streets Operating – recurring share
Street Capital – recurring share
Park Development – recurring share
Commercial Fishing Homeport
Internal Engineering
Facilities Capital
Total Planned Uses

2027
2028
$130,000
$130,000
130,000
130,000
130,000
130,000
130,000
130,000
850,755
—
—
364,074
296,000
220,000
$1,666,755 $1,104,074

The budget assumes approximately $520,000 of new REET 2 revenue in each year of
the biennium. Resources accumulated from prior years are also available to support
planned uses.

Budget Overview

94

Page 105 of 153

City of Gig Harbor, Washington

2027-2028 Biennial Budget

Impact Fee Trust - Fund 309

This fund accounts for the parks and transportation impact fees that are paid to the city.
As projects that are eligible for impact fee funding are appropriated by city council, the
impact fees allocated for that project are transferred to the construction fund.
Budget Overview
Beginning Fund Balance
Revenues
Charges for Goods & Services
Miscellaneous Revenue

2024 Actual

2025 Budget

2025 Actual

2026 Budget

2027 Budget

2028 Budget

3,245,062

3,303,096

3,005,540

1,554,901

2026 YTD
3,547,420

4,756,955

2,889,392

225,068
162,110

536,197
110,849

453,908
137,972

541,559
45,425

1,126,685
67,979

440,000
142,700

440,000
142,700

Other Sources
Transfers In

-

-

-

-

-

-

-

Total Revenues

387,178

647,046

591,880

586,984

1,194,664

582,700

582,700

Total Resources

3,632,240

3,950,142

3,597,420

2,141,885

4,742,084

5,339,655

3,472,092

-

-

-

-

-

-

-

Transfers Out

626,700

2,400,000

50,000

-

-

2,450,263

1,872,284

Total Uses

626,700

2,400,000

50,000

-

-

2,450,263

1,872,284

3,005,540

1,550,142

3,547,420

2,141,885

4,742,084

2,889,392

1,599,808

Expenditures
Services & Charges
Total Direct Expenditures

Ending Fund Balance

Details of Planned Use
The Impact Fee Trust Fund accounts for transportation and park impact fees. Impact
fees are restricted to qualifying capacity-related system improvements associated with
growth and are accounted for separately by facility type.
Planned Use
38th Avenue Transportation Improvements
Parks Development – project management
Cushman Trail
Sports Complex Phase 2
Total Planned Uses

2027
2028
$1,820,032
—
420,231
72,284
210,000
500,000
— 1,300,000
$2,450,263 $1,872,284

The budget anticipates approximately $400,000 per year in transportation impact fees
and $40,000 per year in park impact fees, in addition to accumulated balances from
prior collections.

Budget Overview

95

Page 106 of 153

City of Gig Harbor, Washington

2027-2028 Biennial Budget

Hospital Benefit Zone Revenue - Fund 310

The Hospital Benefit Zone Revenue fund was established by Ordinance 1201 to receive
the sales tax imposed by the city within the Hospital Benefit Zone (HBZ). In accordance
with the enabling legislation, the taxes received from the HBZ are capped at $2,000,000
per year and may only be applied to eligible projects. The eligible projects are identified
in Ordinance 1057, which established the HBZ. The project list is subject to amendment
by the city.
Budget Overview
2024 Actual

2025 Budget

2025 Actual

2026 Budget

2027 Budget

2028 Budget

Beginning Fund Balance

8,290,863

6,767,626

4,556,294

3,335,251

2026 YTD
2,251,321

4,086,713

3,770,824

Revenues
Taxes
Miscellaneous Revenue

2,000,000
367,431

2,000,000
270,705

2,000,000
87,118

2,000,000
101,108

1,223,266
33,908

2,000,000
122,600

2,000,000
122,600

Other Sources
Transfers In

-

-

-

-

-

-

-

Total Revenues

2,367,431

2,270,705

2,087,118

2,101,108

1,257,174

2,122,600

2,122,600

Total Resources

10,658,294

9,038,331

6,643,412

5,436,359

3,508,496

6,209,313

5,893,424

-

-

90
90

-

28
28

-

-

Transfers Out

6,102,000

5,703,080

4,392,000

-

-

2,438,490

5,327,555

Total Uses

6,102,000

5,703,080

4,392,090

-

28

2,438,490

5,327,555

Ending Fund Balance

4,556,294

3,335,251

2,251,321

5,436,359

3,508,467

3,770,824

565,869

Expenditures
Services & Charges
Total Direct Expenditures

Details of Planned Use
The Hospital Benefit Zone Fund accounts for revenues received under the City’s
Hospital Benefit Zone financing program. These revenues are restricted to qualifying
public improvements authorized under the program.
Planned Use
Commercial Fishing Homeport
Peacock Hill Half Street Imp.
Street Capital projects
Total Planned Uses

2027
2028
$2,338,490
—
100,000
2,100,000
—
$3,227,555
$2,438,490
$5,327,555

The budget anticipates $2.0 million of Hospital Benefit Zone revenue in each year of the
biennium, together with accumulated resources from prior years.

Budget Overview

96

Page 107 of 153

City of Gig Harbor, Washington

2027-2028 Biennial Budget

Transportation Benefit District – Fund 650

The Transportation Benefit District Revenue fund was established by Ordinance 1392 to
receive the sales tax imposed by the city within the Traffic Benefit District for the
purpose of acquiring, constructing, improving, providing, and funding transportation
improvements within the district. These improvements include some of the projects
contained in the transportation element of the city’s comprehensive plan, including the
investment in new or existing arterials of regional significance and other transportation
projects of regional or statewide significance.
Budget Overview
2024 Actual

2025 Budget

2025 Actual

2026 Budget

2027 Budget

2028 Budget

Beginning Fund Balance

3,064,832

6,869,923

2,197,709

5,078,756

2026 YTD
4,604,875

6,448,291

5,110,674

Revenues
Taxes
Miscellaneous Revenue

2,038,162
262,925

3,052,768
240,448

3,132,622
232,754

3,113,823
149,362

2,158,987
139,193

3,160,000
193,400

3,180,000
193,400

Other Sources
Transfers In

-

-

-

-

-

-

-

Total Revenues

2,301,087

3,293,216

3,365,375

3,263,185

2,298,179

3,353,400

3,373,400

Total Resources

5,365,920

10,163,139

5,563,085

8,341,941

6,903,054

9,801,691

8,484,074

210
210

-

210
210

-

114
114

-

-

Transfers Out

3,168,000

5,084,383

958,000

5,134,382

-

4,691,017

4,408,990

Total Uses

3,168,210

5,084,383

958,210

5,134,382

114

4,691,017

4,408,990

Ending Fund Balance

2,197,709

5,078,756

4,604,875

3,207,559

6,902,941

5,110,674

4,075,084

Expenditures
Services & Charges
Total Direct Expenditures

Details of Planned Use
Transportation Benefit District revenues provide a dedicated source of transportation
funding. The 2027–2028 budget uses these resources for both capital improvements
and eligible transportation operating and preservation activities.
Planned Use
Street Capital Fund
Street Operating Fund
Total Planned Uses

2027

$2,933,517
1,757,500
$4,691,017

2028

$2,851,990
1,557,000
$4,408,990

The budget anticipates approximately $3.16 million of TBD sales-tax revenue in 2027
and $3.18 million in 2028.

Budget Overview

97

Page 108 of 153

City of Gig Harbor, Washington

2027-2028 Biennial Budget

Debt Service Fund Type

Debt service funds account for the accumulation of resources to pay principal, interest,
and related costs on general long-term bonded debt.
The only debt service fund the city has is the Limited Tax General Obligation Bond
Redemption Fund (LTGO). This does not include debt for the water, sewer, or storm
utilities. More information on city debt can be found in debt section of the budget.

Budget Overview

98

Page 109 of 153

City of Gig Harbor, Washington

2027-2028 Biennial Budget

LTGO Bond - Fund 208

The Limited Tax General Obligation (LTGO) Bond fund accounts for debt service on
the city’s outstanding, non-voted general obligation debt. Debt service consists of
principal and interest payments and other miscellaneous charges related to the
LTGO debt.
Budget Overview
2024 Actual

2025 Budget

2025 Actual

2026 Budget

Beginning Fund Balance

83,170

1,211

(276,036)

28,346

Revenues
Miscellaneous Revenue

4,353

2,000

3,667

2,000

Other Sources
Transfers In

1,198,353

1,078,395

1,162,683

Total Revenues

1,202,706

1,080,395

1,166,350

Total Resources

1,285,876

1,081,606

856,240
705,671

2026 YTD

2027 Budget

2028 Budget

29,247

83,931

86,431

1,595

2,500

2,500

1,040,000

-

897,082

881,390

1,042,000

1,595

899,582

883,890

890,314

1,070,346

30,843

983,513

970,321

1,053,260
-

861,067
-

1,048,474
-

-

897,082
-

881,390
-

1,561,911

1,053,260

861,067

1,048,474

-

897,082

881,390

-

-

-

-

-

-

-

Total Uses

1,561,911

1,053,260

861,067

1,048,474

-

897,082

881,390

Ending Fund Balance

(276,036)

28,346

29,247

21,872

30,843

86,431

88,931

Expenditures
Debt Service
Other Expenditures
Total Direct Expenditures
Cost Allocation Charges
Transfers Out

Budget Overview

99

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City of Gig Harbor, Washington

2027-2028 Biennial Budget

Enterprise Fund Type

Enterprise funds are used to account for operations that provide goods or services to
the public and are supported primarily through user charges.
Gig Harbor's enterprise funds are broken down into operating funds, debt service, and
capital construction funds.
The operating funds include water, sewer, and stormwater funds that account for the
operation and maintenance of those utilities.
The debt service funds include the Utility Bond Redemption and Utility Reserve funds
that accumulate resources for the payment of various revenue bonds and satisfy the
bond covenants.
The capital construction funds include Sewer Capital Construction, Water Capital
Assets, and Stormwater Capital that account for the accumulation of connection fees
and other resources for the purchase or construction of major assets.

Budget Overview

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City of Gig Harbor, Washington

2027-2028 Biennial Budget

Water Operating - Fund 401

The primary function of the Operations Water Department is to provide safe, reliable
drinking water to the residents and businesses of the City of Gig Harbor through the
efficient operation, maintenance, and repair of the City's municipal water distribution
system. In support of the City of Gig Harbor's Strategic Plan, the department ensures
the delivery of high-quality drinking water while protecting public health, maintaining
regulatory compliance, and preserving critical infrastructure through proactive asset
management and strict compliance to regulatory requirements. By providing
dependable service, and continuous operational improvements, the department
supports the City's commitment to resilient infrastructure, environmental stewardship,
economic vitality and exceptional municipal services.
Budget Overview
2024 Actual

2025 Budget

2025 Actual

2026 Budget

2027 Budget

2028 Budget

Beginning Fund Balance

1,913,910

1,257,909

4,000,802

913,093

4,967,181

2,651,187

1,235,565

Revenues
Charges for Goods & Services
Miscellaneous Revenue
Other Revenue

3,112,415
140,693
-

3,137,142
46,527
-

3,857,275
71,182
-

3,168,496
29,893
-

2,737,475
61,285
18,116

4,654,241
79,500
-

5,155,448
79,500
-

Other Sources
Transfers In

3,339,308

-

-

-

-

-

-

-

-

-

-

7,053

-

-

Total Revenues

6,592,416

3,183,669

3,928,457

3,198,389

2,823,928

4,733,741

5,234,948

Total Resources

8,506,326

4,441,578

7,929,258

4,111,482

7,791,110

7,384,928

6,470,513

Salaries & Wages
Personnel Benefits
Supplies
Services & Charges
Capital Outlay
Debt Service
Total Direct Expenditures

1,013,151
401,838
171,525
670,934
0
370
2,257,819

1,305,700
547,250
423,500
712,897
295,050
-

1,123,479
411,106
155,618
995,665
29,168
-

1,431,000
648,550
388,500
805,361
109,500
-

778,269
282,158
102,552
224,566
94,332
-

785,090
343,928
35,500
617,100
134,551
-

837,998
359,246
30,500
354,730
139,242
-

3,284,397

2,715,035

3,382,911

1,481,876

1,916,169

1,721,716

Cost Allocation Charges
Transfers Out

2,247,705

244,088

247,042

245,189

-

736,031
3,497,163

758,398
2,903,409

Total Uses

4,505,524

3,528,485

2,962,077

3,628,100

1,481,876

6,149,363

5,383,523

Ending Fund Balance

4,000,802

913,093

4,967,181

483,382

6,309,234

1,235,565

1,086,990

Other Financing Sources

2026 YTD

Expenditures

2025 – 2026 Highlights
- Completed the systematic servicing and maintenance for all emergency back-up
generators at production wells.
- Verified the accuracy of all source meters located at all production wells.
- Performed routine watermain flushing.
- Managed minor contracts necessary for facility operational needs.
- Developed and implemented a hydrant and valve exercising program.
- Developed and implemented a water meter maintenance program.
- Tested and maintained the backflow devices at city-owned facilities.

Budget Overview

101

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City of Gig Harbor, Washington
-

2027-2028 Biennial Budget

Performed comprehensive maintenance and testing of all the water systems
pressure reducing valves.
Managed and maintained the water SCADA system.
Completed and submitted all required reports to the Washington State Department
of Health.
Performed well site maintenance, including vegetation trimming, driveway
maintenance, and security improvements.
Completed and initiated water rate study which includes tiered water rate system.
Hired consultant to develop an Emergency Drought Policy.
Removed the “Pump to Waste” feature off of Well 6, which will save approximately
1.25 million gallons annually
Hired consultant to install a variable frequency drive on Well #2, this work will be
completed by the end of 2026.
Hired a contractor to perform an internal coating inspection of the Skansie Reservoir.
Acquired the Shore Acres Water System.
Installed upgraded security camera system on the North and East tank sites
Hired a contractor to perform a comprehensive city-wide leak detection project which
identified 8 leaks. These leaks were repaired which resulted in an estimated water
savings of 3.1 million gallons annually.
Hired a consultant to perform an arch flash assessment on all of the city’s well sites
and booster pump station.
Completed the first phase of the Lead Service Line Inventory and have been able to
deem the city’s water system as “lead free based on statistical evaluation”. Phase
two or this project will commence in 2026.

2027 – 2028 Goals
- Install water main to connect the existing city’s water system with the newly
acquired Shore Acres Water System on Reid Drive at Hollycroft.
- Replace old security fencing around Skansie Tank, Well #3A, Well #4 and East
Tank site to enhance perimeter security.
- Install an automated construction water filling station at the Public Works
Operation Center.
- Hire a consultant to perform a system wide SCADA system upgrade which will
include new PLC’s, new water system management program and new
operational programing logic.
- Hire a consultant to help the city establish water line easements where our water
mains go through private properties.
- Complete the Department of Ecology Lead Service Line Inventory.
- Hire a consultant on an “On-Call” basis for arborist evaluation services.
- Hire a contractor on an “On-Call” basis for emergency tree removal services.
- Participate with other water purveyors in the region to work with the Department
of Ecology to update the USGS water model to make it more accurate so that we
can better and more efficiently acquire water rights for future potable water wells.
- Install a battery backup system at the North Reservoir to power the SCADA
remote telemetry unit in the event of a prolonged power outage.
Budget Overview

102

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City of Gig Harbor, Washington
-

2027-2028 Biennial Budget

Hire a contractor to inspect and redevelop Well #2.
Install a flow control valve and SCADA remote telemetry unit at the Fuller Street
Pressure Reducing Station.

Budget Overview

103

Page 114 of 153

City of Gig Harbor, Washington

2027-2028 Biennial Budget

Wastewater Operating - Fund 402

Operation and maintenance of the city’s wastewater collection facilities and wastewater
treatment plant to provide a reliable, safe, and cost-effective wastewater system with
consistent collection treatment and biosolids processing, meeting or exceeding federal
and state requirements and guidelines, and the expectations of Gig Harbor residents.
Specific functions include monitoring, inspection, maintenance, and repair of the
system, coordination of wastewater system repairs with the city’s pavement
maintenance program and other utility projects, preparing required reports, locating
unmapped wastewater pipes, responding to resident requests, regulatory coordination
and certification, review of wastewater plans, conducting inflow\infiltration studies, and
periodically updating design standards. The goals and long-range plans for this fund
meet the city’s strategic plan priorities by ensuring a sustainable future for public
services and facilities.
Budget Overview
2024 Actual

2025 Budget

2025 Actual

2026 Budget

2027 Budget

2028 Budget

Beginning Fund Balance

2,777,474

-

2,964,139

-

2026 YTD
3,869,436

7,010,310

2,949,659

Revenues
Intergovernmental Revenue
Charges for Goods & Services
Miscellaneous Revenue
Other Revenue

27,102
6,667,901
256,886
-

6,712,010
80,200
-

10,396
6,979,121
237,750
-

6,779,108
55,231
-

4,872,993
134,796
4,189

7,850,033
225,300
-

8,380,690
225,300
-

Other Sources
Transfers In

86,148

-

-

-

-

-

-

Other Financing Sources

1,424

-

5,953

-

-

-

-

Total Revenues

7,039,460

6,792,210

7,233,218

6,834,339

5,011,978

8,075,333

8,605,990

Total Resources

9,816,935

6,792,210

10,197,358

6,834,339

8,881,414

15,085,643

11,555,648

Salaries & Wages
Personnel Benefits
Supplies
Services & Charges
Capital Outlay
Debt Service
Total Direct Expenditures

1,586,231
664,947
474,419
1,102,925
354
3,828,875

1,783,900
729,750
735,640
1,716,691
263,900
5,229,881

1,699,961
645,446
506,333
1,449,070
10,204
4,311,012

1,909,100
824,850
449,640
1,430,094
125,800
4,739,484

1,169,124
434,385
363,076
294,000
23,874
2,284,460

1,233,699
649,311
1,396,100
1,720,317
187,457
53,000
5,239,884

1,319,725
687,852
732,600
1,176,123
110,481
184,579
4,211,361

Cost Allocation Charges
Transfers Out

3,023,920

2,019,865

2,016,910

3,020,327

-

1,072,776
5,823,324

1,102,904
3,882,679

Total Uses

6,852,795

7,249,746

6,327,922

7,759,811

2,284,460

12,135,984

9,196,943

Ending Fund Balance

2,964,139

(457,536)

3,869,436

(925,472)

6,596,955

2,949,659

2,358,705

Expenditures

2025 – 2026 Highlights
- Software Upgrades to the Supervisory Control and Data Acquisition (SCADA)
System with Computer Replacement. (The existing SCADA software and computers
which were installed in 2009 and are in need of upgrading and replacement).
-

Continued sewer hydraulic model updates.

Budget Overview

104

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City of Gig Harbor, Washington

2027-2028 Biennial Budget

-

Due to the age of existing pumps and flows at Lift Station 3A, a replacement pump
was be purchased and put into service. This has added redundancy and provides a
backup pump in case of failure.

-

The digester tanks at the WWTP (Wastewater Treatment Plant) had a significant
amount of grit accumulated in them which was removed. This grit is also created
operational problems within the digester aeration system.

-

Due to high flows at Lift Station 4B and long lead times for pump parts or
replacement, a backup Hydrostat pump was added for redundancy in case of pump
failure.

-

The City has rented the gravity main line equipment called SR-Rat the past five
years and has found that it has been more cost effective to purchase this equipment.
This also has allowed staff to perform gravity main line inspections throughout the
year as time has allowed.

2027 - 28 Goals
- Replacement of the two existing wastewater composite samplers at the wastewater
treatment plant is necessary due to their age and importance of reliable composite
sampling. (This goal is consistent with the council’s strategic goal to ensure a
sustainable future for public services and facilities).
-

Installation of a conveyor system that would convey the solids removed in the
wastewater treatment plant headworks screening process from the existing screen
to a dumpster outside of the screening area. Two times per day, staff must carry a
55-gallon garbage can up a flight of stairs to then dump the screenings into a 1-yard
dumpster for final disposal. The addition of a conveyor would eliminate the chance of
a staff member injuring themselves by carrying the garbage can up the stairs and
lifting into an existing dumpster. (This goal is being proposed in efforts to protect staff
from injury and is in line with council’s strategic goal of fostering a healthy
organization).

-

Because it is critical to the wastewater treatment process, staff are recommending
the purchase of a spare blower core for the existing blowers. This would allow staff
to change the core within a couple of hours should one fail. The blowers at the
treatment plant range from approximately 6 to 20 years of age. (This goal is
consistent with the council’s strategic goal to ensure a sustainable future for public
services and facilities).

-

Replacement of odor scrubbing carbon media in odor control equipment located at
lift stations #2, #3, #4, #12, and the two odor control units at the wastewater
treatment plant. Replacement of this media is necessary every four to five years in
order to filter offensive and unpleasant odors coming from the wastewater at these

Budget Overview

105

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City of Gig Harbor, Washington

2027-2028 Biennial Budget

sites. (This goal is consistent with the council’s strategic goal to ensure a sustainable
future for public services and facilities).
-

Replacement of aeration diffusers in basins #2, #3, and #4 at the wastewater
treatment plant. These existing diffusers have reached their life expectancy and
need to be replaced. Staff is planning to begin replacement of these diffusers in
2028. (This goal is consistent with the council’s strategic goal to ensure a
sustainable future for public services and facilities).

-

This goal is to have a consultant perform an on-site evaluation of the existing cityowned large on-site septic system which receives effluent from lift station #20 on
Ray Nash Drive. This system was constructed in 1980 by Pierce County and the city
assumed ownership in 1988. In addition to the overall evaluation of the septic
system, the consultant will also be looking at whether the system has any additional
capacity in the form of ERUs. (This goal is consistent with the council’s strategic goal
to ensure a sustainable future for public services and facilities).

-

With the issuance of the wastewater’s National Pollutant Discharge Elimination
System (NPDES) permit expected in 2026, there are additional requirements
regarding the maximum amount of nutrients (Nitrogen) allowed to be discharged
from the wastewater treatment plant. This request is to continue working with the
consulting firm, (Corollo Engineers) as necessary to assist us with future wastewater
treatment optimization options, planning and permit compliance as may be required.
(This goal is consistent with the council’s strategic goal to ensure a sustainable
future for public services and facilities).
The wastewater comprehensive plan has historically been completed every 10
years. The last comprehensive plan was completed in 2018 and will be due for
updating in 2028. (This goal is consistent with the council’s strategic goal to ensure a
sustainable future for public services and facilities).

-

-

The existing harmonic filters that cancel disruptive electrical currents prior to the
aeration blowers at the wastewater treatment plant have exceeded their life
expectancy of ten years and need to be replaced. (This goal is consistent with the
council’s strategic goal to ensure a sustainable future for public services and
facilities).

Long – Range Plans
- Continue the City’s reclaimed water study and explore potential water reclamation
and reuse sites within the City and the UGA.
-

Develop a comprehensive Pretreatment Ordinance to protect the City’s Publicly
Owned Treatment Works (POTW) and receiving waters.

-

Update the demographics forecasting allocation model (DFAM) to forecast
population growth on the parcels within the City’s (UGA).

Budget Overview

106

Page 117 of 153

City of Gig Harbor, Washington

2027-2028 Biennial Budget

Shorecrest Sewer Operating Fund - Fund 403

The Shorecrest Sewer System is actually a large on-site septic system located in
Rosedale that was established by Pierce County in 1980 to mitigate individual
residential on-site septic systems from negatively impacting Lay Inlet. In 1988, Pierce
County requested the City of Gig Harbor take over the operation and maintenance of
the system due to the city’s proximity to the facility and because one day the effluent
from the system may connect to the city’s gravity sewer main in Rosedale Street.
This fund was established in February 2012 to account for all Shorecrest Sewer
revenues and expenditures. Both regular maintenance and operations and capital
replacements are accounted for in this fund. The goals and long-range plans for this
fund meet the city’s strategic plan priorities by ensuring a sustainable future for public
services and facilities.
Budget Overview
2024 Actual

2025 Budget

2025 Actual

2026 Budget

2027 Budget

2028 Budget

Beginning Fund Balance

279,111

313,757

316,903

345,759

355,775

423,589

462,389

Revenues
Charges for Goods & Services
Miscellaneous Revenue
Other Revenue

24,609
15,317
-

24,621
10,981
-

26,085
13,925
-

24,621
10,373
-

15,611
6,399
49,164

27,900
12,700
-

28,900
12,700
-

Other Sources
Transfers In

-

-

-

-

-

-

-

Other Financing Sources

-

-

-

-

-

-

-

Total Revenues

39,926

35,602

40,011

34,994

71,174

40,600

41,600

Total Resources

319,036

349,359

356,913

380,753

426,949

464,189

503,989

2,134

3,600

1,138

3,600

774

1,800

1,800

2,134

3,600

1,138

3,600

774

1,800

1,800

2026 YTD

Expenditures
Services & Charges
Total Direct Expenditures
Transfers Out
Total Uses
Ending Fund Balance

-

-

-

-

-

-

-

2,134

3,600

1,138

3,600

774

1,800

1,800

316,903

345,759

355,775

377,153

426,176

462,389

502,189

2025 - 26 Highlights
- The Shorecrest Community Septic System requires monthly and semi-annual
maintenance to the sewage tanks, pump chamber, controls, electrical panel and
drain field. This maintenance is required by the Washington State Department of
Health to complete the annual Large On-Site Sewage System (LOSS) operating
permit.
- The WWTP Maintenance crew continues to successfully complete the maintenance
that is required for this permit each year.

Budget Overview

107

Page 118 of 153

City of Gig Harbor, Washington

2027-2028 Biennial Budget

2027 - 28 Goals
- Continue to complete the maintenance tasks on time to comply with the Department
of Health and receive the annual LOSS operating permit.
Long – Range Plan
- Potential of a connection to the City sewer system, if the drain field were to fail,
which would require the installation of a lift station and a 4-mile long force main.

Budget Overview

108

Page 119 of 153

City of Gig Harbor, Washington

2027-2028 Biennial Budget

Utility Reserve - Fund 407

The Utility Reserve fund is required under the covenants of Water and Sewer Revenue
Bonds.
The reserve account is required to be funded to the lesser of (A) % of the net proceeds
of each series of Parity Bonds, (B) Annual Debt Service, (C) .25 times average Annual
Debt Service, or (D) amount as shall be required to maintain the exemption of interest of
any series of Parity Bonds from taxation under the code.
Budget Overview
2024 Actual

2025 Budget

2025 Actual

2026 Budget

2027 Budget

2028 Budget

Beginning Fund Balance

467,376

1,556,694

512,729

1,611,128

2026 YTD
556,551

1,636,988

1,685,988

Revenues
Miscellaneous Revenue

45,365

54,484

43,875

48,334

21,450

49,100

49,100

Other Sources
Transfers In

-

-

-

-

-

-

-

Other Financing Sources

-

-

-

-

-

-

-

Total Revenues

45,365

54,484

43,875

48,334

21,450

49,100

49,100

Total Resources

512,741

1,611,178

556,603

1,659,462

578,001

1,686,088

1,735,088

13
13

50
50

52
52

50
50

28
28

100
100

100
100

Expenditures
Services & Charges
Total Direct Expenditures
Transfers Out

-

-

-

-

-

-

-

Total Uses

13

50

52

50

28

100

100

512,729

1,611,128

556,551

1,659,412

577,973

1,685,988

1,734,988

Ending Fund Balance

Budget Overview

109

Page 120 of 153

City of Gig Harbor, Washington

2027-2028 Biennial Budget

Utility Bond Redemption - Fund 408

This fund accounts for Water and Sewer fund debt service.
Budget Overview
2024 Actual

2025 Budget

2025 Actual

2026 Budget

2027 Budget

2028 Budget

Beginning Fund Balance

277,204

111,250

2,221,081

123,501

4,190,367

315,083

324,583

Revenues
Miscellaneous Revenue

14,529

13,000

12,265

13,000

708

9,500

9,500

2,271,625

2,263,953

2,263,952

2,265,516

-

2,482,704

3,472,817

-

-

-

-

-

-

-

Total Revenues

2,286,154

2,276,953

2,276,217

2,278,516

708

2,492,204

3,482,317

Total Resources

2,563,358

2,388,203

4,497,298

2,402,017

4,191,075

2,807,287

3,806,900

Debt Service

342,276

2,264,702

306,931

2,266,265

818,090

2,482,704

3,472,817

Total Direct Expenditures

342,276

2,264,702

306,931

2,266,265

818,090

2,482,704

3,472,817

-

-

-

-

-

-

-

342,276

2,264,702

306,931

2,266,265

818,090

2,482,704

3,472,817

2,221,081

123,501

4,190,367

135,752

3,372,984

324,583

334,083

Other Sources
Transfers In
Other Financing Sources

2026 YTD

Expenditures

Transfers Out
Total Uses
Ending Fund Balance

Budget Overview

110

Page 121 of 153

City of Gig Harbor, Washington

2027-2028 Biennial Budget

Wastewater Capital - Fund 410

This fund accumulates resources for major wastewater capital projects, and accounts
for their purchase, construction, and financing. Sources of revenue for the fund include
wastewater connection fees, transfers from the wastewater operating fund, and interest
earnings. The goals and long-range plans for this fund meet the city’s strategic plan
priorities by ensuring a sustainable future for public services and facilities.
Budget Overview
2024 Actual

2025 Budget

2025 Actual

2026 Budget

2027 Budget

2028 Budget

Beginning Fund Balance

4,684,010

13,017,606

6,102,184

6,755,364

5,366,661

5,337,869

1,825,403

Revenues
Intergovernmental Revenue
Miscellaneous Revenue
Other Revenue

374,656
477,588

455,616
448,368

341,461
138,895

202,661
452,852

87,471
1,301,524

1,000,000
255,947
500,000

239,337
500,000

1,000,000

-

-

1,000,000

-

4,115,276

2,134,890

-

-

-

-

-

600,000

1,540,000

Total Revenues

1,852,244

903,984

480,356

1,655,513

1,388,994

6,471,223

4,414,227

Total Resources

6,536,254

13,921,590

6,582,539

8,410,877

6,755,656

11,809,092

6,239,630

Total Direct Expenditures

(0)
10,540
300,462
347,923

384,200
144,800
6,726
6,875,000
7,410,726

10,227
(1,787)
1,268
1,206,171
1,215,878

399,400
157,900
6,793
8,205,000
8,769,093

261,782
97,000
21,920
330,352
711,054

613,689
9,370,000
9,983,689

388,546
4,300,000
4,688,546

Cost Allocation Charges
Transfers Out

86,148

119,500

-

-

-

-

-

434,071

7,530,226

1,215,878

8,769,093

711,054

9,983,689

4,688,546

6,102,184

6,391,364

5,366,661

(358,216)

6,044,602

1,825,403

1,551,084

Other Sources
Transfers In
Other Financing Sources

2026 YTD

Expenditures
Salaries & Wages
Personnel Benefits
Services & Charges
Capital Outlay
Debt Service

Total Uses
Ending Fund Balance

Budget Overview

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Stormwater Operating - Fund 411

The Stormwater Operating fund is responsible for providing resources to maintain,
operate, and improve the city’s stormwater collection, treatment, and discharge system.
The intent of this fund is to ensure a sustainable future for public service and facilities by
providing cost-effective conveyance and disposal of urban runoff from within the public
right of way consistent with federal, state, and local regulations and guidelines to
minimize pollution and physical impacts to downstream properties, groundwater, surface
water, and sensitive aquatic life. This function also includes administration of the
NPDES Phase 2 permit, continuing to manage a Local Source Control Program, review
of private development stormwater systems, and periodic update of the city’s
stormwater management manual. The goals and long-range plans for this fund meet the
city’s strategic plan priorities by ensuring a sustainable future for public services and
facilities.
Budget Overview
2024 Actual

2025 Budget

2025 Actual

2026 Budget

2027 Budget

2028 Budget

Beginning Fund Balance

2,388,825

923,002

3,803,406

490,784

4,878,211

2,939,451

1,049,149

Revenues
Intergovernmental Revenue
Charges for Goods & Services
Miscellaneous Revenue
Other Revenue

22,116
1,876,188
137,144
148,531

2,157,802
32,312
-

107,884
2,141,810
113,404
-

2,179,381
32,631
-

98,514
1,326,261
58,424
-

2,266,968
88,200
-

2,351,696
88,200
-

Other Sources
Transfers In

1,135,309

-

-

-

-

-

-

-

-

3,605

-

-

-

-

Total Revenues

3,319,287

2,190,114

2,366,704

2,212,012

1,483,199

2,355,168

2,439,896

Total Resources

5,708,112

3,113,116

6,170,110

2,702,796

6,361,409

5,294,619

3,489,044

Salaries & Wages
Personnel Benefits
Supplies
Services & Charges
Capital Outlay
Debt Service
Other Expenditures

569,211
223,410
29,425
186,486
0
349
(104,174)

654,500
276,960
78,692
492,313
295,050
-

610,726
231,560
66,432
354,013
29,168
-

680,500
301,460
77,442
500,095
242,800
-

409,554
166,356
39,467
16,981
210,962
-

376,451
190,730
65,000
358,181
345,020
-

398,538
201,283
63,750
346,536
124,711
-

Total Direct Expenditures

Other Financing Sources

2026 YTD

Expenditures

904,707

1,797,515

1,291,899

1,802,297

843,320

1,335,381

1,134,818

Cost Allocation Charges
Transfers Out

1,000,000

228,100

-

1,000,000

-

467,662
2,442,428

481,614
1,378,253

Total Uses

1,904,707

2,025,615

1,291,899

2,802,297

843,320

4,245,471

2,994,685

Ending Fund Balance

3,803,406

1,087,501

4,878,211

(99,501)

5,518,090

1,049,149

494,359

2025 – 2026 Highlights
- Installed permeant erosion control measures in the ravine just south of the Wastewater
Treatment plant to reduce transport of gravels into stormwater collections system.
- Implemented ditch facility cleaning program to help mitigate erosion and flooding.

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City of Gig Harbor, Washington

2027-2028 Biennial Budget

2027-2028 Goals
- Maintain compliance throughout the city’s NPDES stormwater permit, resulting in
no non-compliance letters during upcoming permit cycle.
- Expand city-wide ditch facility cleaning program.
- Update storm section of the Public Works Standards.
- Hire a consultant on an “On-Call” basis for tree removal services.
- Hire a consultant on an “On-Call” basis for arborist evaluation services.

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Stormwater Capital - Fund 412

This fund accumulates resources for major stormwater capital projects and accounts for
their purchase, construction, and financing. Sources of revenue for the fund include
connection fees and storm rates. The goals and long-range plans for this fund meet the
city’s strategic plan priorities by ensuring a sustainable future for public services and
facilities.
Budget Overview
2024 Actual

2025 Budget

2025 Actual

2026 Budget

2027 Budget

2028 Budget

Beginning Fund Balance

2,437,105

5,406,633

2,454,719

3,000,529

1,506,912

1,474,645

619,914

Revenues
Intergovernmental Revenue
Miscellaneous Revenue
Other Revenue

118,664
39,596

189,232
73,864

317,427
68,442
120,183

90,016
74,603

2,820
16,777
174,593

2,400,000
44,200
75,000

44,200
75,000

1,000,000

-

-

1,000,000

-

2,307,218

-

-

-

-

-

-

5,400,000

1,520,000

Other Sources
Transfers In
Other Financing Sources

2026 YTD

Total Revenues

1,158,261

263,096

506,052

1,164,619

194,189

10,226,418

1,639,200

Total Resources

3,595,366

5,669,729

2,960,771

4,165,148

1,701,101

11,701,063

2,259,114

Salaries & Wages
Personnel Benefits
Supplies
Services & Charges
Capital Outlay
Other Expenditures

0
494
(515)
5,359

-

961
156
1,408,441
-

37,400
15,100
550,000
-

23,628
10,704
35,652
-

681,149
10,400,000
-

90,359
1,000,000
-

Total Direct Expenditures

Expenditures

5,338

-

1,409,558

602,500

69,985

11,081,149

1,090,359

Cost Allocation Charges
Transfers Out

1,135,309

-

44,301

-

-

-

-

Total Uses

1,140,646

-

1,453,859

602,500

69,985

11,081,149

1,090,359

Ending Fund Balance

2,454,719

5,669,729

1,506,912

3,562,648

1,631,116

619,914

1,168,755

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City of Gig Harbor, Washington

2027-2028 Biennial Budget

Water Capital - Fund 420

This fund accumulates resources for major water capital projects and accounts for their
purchase, construction, and financing. Sources of revenue for the fund include water
connection fees, transfers from the Water Operating fund, and interest earnings. The
goals and long-range plans for this fund meet the city’s strategic plan priorities by
ensuring a sustainable future for public services and facilities.
Budget Overview
2024 Actual

2025 Budget

2025 Actual

2026 Budget

2027 Budget

2028 Budget

2,089,408

5,452,826

1,061,886

2,892,261

137,623

3,006,542

4,224,095

7,673
160,669
181,624

70,000
137,791

2,046
113,949
114,712

70,000
145,591

2,739
51,486
553,231

90,200
100,000

90,200
100,000

2,000,000

-

-

-

-

3,159,717

2,058,633

-

-

-

-

-

3,600,000

7,440,000

Total Revenues

2,349,966

207,791

230,707

215,591

607,456

6,949,917

9,688,833

Total Resources

4,439,374

5,660,617

1,292,593

3,107,852

745,079

9,956,459

13,912,929

Salaries & Wages
Personnel Benefits
Services & Charges
Capital Outlay
Other Expenditures

(0)
0
5,910
29,556
2,714

-

3,868
597
1,041
1,117,567
-

150,500
56,000
2,912
1,155,500
-

94,242
36,441
9,602
397,103
-

352,363
5,380,000
-

976,785
10,810,000
-

Total Direct Expenditures

Beginning Fund Balance
Revenues
Intergovernmental Revenue
Charges for Goods & Services
Miscellaneous Revenue
Other Revenue
Other Sources
Transfers In
Other Financing Sources

2026 YTD

Expenditures

38,180

-

1,123,073

1,364,912

537,388

5,732,363

11,786,785

Cost Allocation Charges
Transfers Out

3,339,308

-

31,897

-

-

-

-

Total Uses

3,377,488

-

1,154,969

1,364,912

537,388

5,732,363

11,786,785

Ending Fund Balance

1,061,886

5,660,617

137,623

1,742,940

207,691

4,224,095

2,126,143

Budget Overview

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City of Gig Harbor, Washington

2027-2028 Biennial Budget

Capital Improvement Program

This portion of the budget covers both resource funds and capital expense funds as
shown in the table below.
Resource Funds
650
Transportation Benefit District
301
REET 1
305
REET 2
309
Transportation and Park Impact Fee Fund
310
Hospital Benefit Zone

Capital Funds
102 Street Capital
109 Park Improvement
121 Facility Capital
410 Sewer Capital Fund
411 Storm Capital Fund
412 Water Capital Fund

Capital Improvement Program Overview
The City of Gig Harbor’s Capital Improvement Program (CIP) provides a coordinated
six-year plan for major investments in streets, parks, public facilities, water, wastewater,
and stormwater infrastructure. The CIP connects the City’s long-range planning efforts
with the biennial budget by identifying projects, anticipated timing, estimated costs, and
available or expected funding sources.
The first two years of the CIP constitute the 2027–2028 Capital Budget. These projects
are included in the biennial budget for appropriation and implementation. Projects
shown for 2029 through 2032 represent the City’s current planning outlook and are not
appropriated through adoption of the 2027–2028 Budget. Future-year projects may be
advanced, deferred, resized, or removed as project scopes and cost estimates are
refined, infrastructure needs change, grants or other funding become available, and
future City Councils establish budget priorities.
Capital projects generally include the acquisition, construction, reconstruction,
replacement, rehabilitation, or substantial improvement of major City assets. The CIP
includes both new investments and continuation of projects that began in prior years
and are progressing through design, permitting, property acquisition, construction, or
other project phases.
2027–2028 Capital Program Summary
Capital Program
2027

2028

Transportation
Parks
Facilities
Water
Wastewater
Stormwater
Total Capital Program

$11,634,135
$2,136,284
$2,090,000
$11,950,132
4,669,169
$1,085,853
$33,565,573

Budget Overview

$9,004,780
$4,934,231
592,000
$5,746,968
10,009,124
$11,109,380
$41,396,483

Biennium
Total
$20,638,915
$7,070,515
$2,682,000
$17,697,100
14,678,293
$12,195,233
$74,962,056

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City of Gig Harbor, Washington

2027-2028 Biennial Budget

The detailed schedules that follow identify both the projects included in the 2027–2028
Capital Budget and the planning-level projects currently anticipated for the remaining
four years of the six-year CIP.
Capital Planning and Community Priorities
Capital planning begins well before development of the
biennial budget. The City uses its Comprehensive Plan,
functional plans, infrastructure condition information,
regulatory requirements, public input, and City Council
priorities to identify long-term infrastructure needs. The CIP
then translates those needs into a financially constrained
schedule based on project readiness, available funding,
staff capacity, and other implementation considerations.

Comprehensive Plan
The City Council adopted the updated 2024 Comprehensive Plan on April 14, 2025.
The plan establishes Gig Harbor’s long-term vision, goals, and policies for growth and
investment over approximately a 20-year planning horizon. It includes specific elements
addressing transportation, utilities, parks and recreation, and capital facilities.
Public participation is an important component of this process. The Comprehensive
Plan integrates citizens’ ideas, concerns, and preferences into decisions about future
development, facilities, and services. The 2024 update followed approximately two
years of public engagement and staff analysis before adoption by the City Council.
The CIP’s provide one of the primary financial mechanisms for implementing these longrange policies.
Transportation Improvement Program
Transportation capital planning is further refined through the City’s Six-Year
Transportation Improvement Program (TIP). Washington law (RCW 35.77.010)
requires cities to maintain a six-year transportation program, review it annually, hold a
public hearing, and adopt an updated program before July 1 each year. The
transportation program must also be consistent with the City’s Comprehensive Plan. Gig
Harbor therefore updates and approves its TIP each June.

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2027-2028 Biennial Budget

The TIP identifies transportation improvements anticipated over the next six years. The
biennial CIP provides the funding and implementation schedule for those projects that
are sufficiently developed and financially feasible during the budget period. Not every
project appearing in the TIP will necessarily receive an appropriation during a particular
biennium, and project timing may change as design, right-of-way, permitting, grant
funding, and other factors develop.
The City’s transportation planning framework is also informed by the Transportation
Element of the Comprehensive Plan and the City’s Active Transportation Plan.
Parks, Recreation and Open Space Planning
The City’s current Parks, Recreation and Open Space Plan (PROS Plan) was
completed in 2022. It is a six-year strategic guide for management and development of
parks, trails, natural areas, and recreational opportunities and was developed with input
and direction from Gig Harbor residents.
An update to the PROS Plan is included in the 2027–2028 Parks Operating Budget.
That process will provide another opportunity for the community to evaluate park needs
and priorities and will help inform future capital investment beyond the current biennium.
Utility System Planning
Water, wastewater, and stormwater capital improvements are similarly guided by
adopted utility system plans, infrastructure condition, system capacity, regulatory
requirements, and long-term service needs. The City’s current adopted plans include
the 2018 Comprehensive Water System Plan Update, 2018 Wastewater
Comprehensive Plan, and 2018 Stormwater Comprehensive Plan.
An update to the Water System Plan is included in the 2027–2028 budget. As utility
planning documents are updated, future CIP projects may be added, reprioritized, or
modified to respond to updated system needs and regulatory requirements.
Council Capital Prioritization
The biennial budget process provides an additional step between long-range planning
and actual capital appropriation. In July 2026, the City Council reviewed and ranked
proposed transportation and parks capital projects. Those priorities were considered
together with adopted planning documents, public input developed through those
planning processes, project readiness, available funding, regulatory requirements, and
organizational capacity in developing the 2027–2028 Capital Budget.
In this way, capital planning moves from broad community priorities to adopted plans,
then to project prioritization and ultimately to funded projects in the biennial budget.

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City of Gig Harbor, Washington

2027-2028 Biennial Budget

Financing the Capital Program
Capital projects are financed through a combination of dedicated taxes, impact fees,
utility revenues, grants, debt proceeds, contributions, accumulated fund balances, and
other City resources.
Many of these resources are restricted by state law, local ordinance, grant agreement,
debt covenant, or the purpose for which the revenues were collected. As a result,
available resources within one capital fund cannot necessarily be redirected to another
capital or operating purpose. The City evaluates funding eligibility at the project level
and combines multiple funding sources where appropriate.
Major Restricted Capital Funding Sources
Funding Source

Principal Authority

General Restriction

REET 1 – Capital
Development
Fund 301

RCW 82.46.010

Used for qualifying capital purposes identified
through the City’s capital planning process. State
law specifically requires the adopted budget to
identify projects funded in whole or in part with
REET 1 proceeds.

REET 2 – Capital
Improvement
Fund 305

RCW 82.46.035

Used solely for capital projects authorized by
statute and specified in the capital facilities plan
element of the Comprehensive Plan, subject to
statutory exceptions. State law also requires the
adopted budget to identify projects funded in
whole or in part with REET 2 proceeds.

Transportation
and Park Impact
Fees – Fund 309

RCW 82.02.050–.090

Used for qualifying system improvements related
to and benefiting new development. Impact-fee
expenditures must conform to the capital facilities
plan element of the Comprehensive Plan.

Transportation
Benefit District –
Fund 650

Chapter 36.73 RCW;
RCW 82.14.0455

Restricted to transportation operation,
preservation and maintenance purposes
authorized under state law and the District’s
authority.

Hospital Benefit
Zone – Fund 310

Chapter 39.100 RCW

Restricted to qualifying public improvements
authorized through the City’s Hospital Benefit
Zone financing program.

Utility
Resources

Applicable utility
authority, local
ordinances, and debt
covenants

Water, wastewater, and stormwater resources
must be used for appropriate purposes benefiting
the respective utility system.

Grants and
Contributions

Applicable agreement
or award

Restricted to eligible costs and conditions
established by the funding source.

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City of Gig Harbor, Washington

2027-2028 Biennial Budget

Understanding Capital Fund Transfers
Some City funds primarily accumulate dedicated or restricted capital resources, while
other funds account for the actual design and construction of capital projects. As a
result, transfers between funds are a normal part of the City’s capital financing structure.
For example, REET, impact fee, Hospital Benefit Zone, and Transportation Benefit
District resources may be transferred to the Street Capital, Parks Development, or
Facilities Capital funds when an eligible project is undertaken. The transfer moves
resources to the fund responsible for the project; it does not represent an additional
Citywide capital expenditure.
The detailed fund schedules elsewhere in the budget report the accounting activity of
each individual fund. The CIP schedules that follow instead present the capital program
from the perspective of the projects being delivered.
Transportation Capital Program
The Transportation Capital Program provides for major improvements to the City’s
street, intersection, pedestrian, bicycle, lighting, accessibility, and related transportation
infrastructure. Projects are coordinated with the Comprehensive Plan Transportation
Element, the annually adopted Six-Year TIP, the Active Transportation Plan,
infrastructure condition, safety needs, and available funding.
The 2027–2028 program continues several significant projects already in development
while also emphasizing preservation and accessibility improvements. Major investments
include the Wollochet Drive/SR-16 Eastbound Off-Ramp Right-Turn Lane, 38th Avenue
Phase 2 Half-Width Roundabout Improvements, and design and right-of-way work for
Peacock Hill Avenue Half-Street Improvements.
The biennium also includes a major Pavement Maintenance and ADA Improvement
program along Soundview Drive, 38th Avenue, and Borgen Boulevard. Coordinating
pavement work, accessibility upgrades, and utility improvements where appropriate
allows the City to reduce repeated roadway disruption and allocate project costs among
the services benefiting from the work.
Other investments include streetlight improvements and initial outreach and design for
the Harborview Drive Downtown Revitalization project.
See Appendix A for the city’s CIP tables.
The transportation schedule distinguishes the 2027–2028 adopted capital program from
planning-level projects anticipated for 2029–2032. Future transportation projects remain
subject to the City's annual TIP update and future budget appropriation.

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City of Gig Harbor, Washington

2027-2028 Biennial Budget

Parks Capital Program
The Parks Capital Program provides for improvement and development of parks, trails,
waterfront facilities, recreational amenities, and other public spaces. Projects are
informed by the Comprehensive Plan, the adopted PROS Plan, public participation,
facility condition, Council priorities, and available funding.
Major 2027–2028 investments include continued development of the Commercial
Fishing Homeport, improvements at Crescent Creek Park, plumbing and electrical
improvements to the Welcome Plaza Splash Pad, and improvements to the Finholm
View Climb and Wilkinson Farm Park.
The program also includes continued expansion of the City’s trail network through the
Cushman Trail connection to North Harborview Drive and design and permitting for
Cushman Trail Phase 5A. Funding is also provided for design and permitting of Sports
Complex Phase 2.
Many parks projects originate in long-range community planning. The 2022 PROS Plan
was developed with substantial public participation, and the update programmed for the
upcoming biennium will provide an opportunity to revisit community needs and priorities
before the next cycle of major capital investments.
See Appendix A for the city’s CIP tables.
Projects shown for 2029–2032 provide a planning framework for future investments in
the Sports Complex, Crescent Creek Park, Jerisich Dock, conservation lands, trail
corridors, and other park facilities.
Facilities Capital Program
The Facilities Capital Program preserves, replaces, and improves City-owned buildings
and operational facilities. Projects are developed in response to facility condition, safety
and regulatory requirements, operational needs, energy efficiency, and the changing
needs of City services.
The largest investment during the biennium is the Operations Center Decant Facility
and Fueling Station. Other planned work addresses aging systems at the Civic Center,
including police security gates, fire and intrusion systems, backup power, interior space
planning, and energy-efficient lighting.
In 2027, the City will hire an architect to evaluate Civic Center space needs and develop
options for accommodating changing operations, staffing, and service demands over
the next 20 years. A future second phase, which is not currently funded, could include
renovations or reconfiguration of the Civic Center based on the study’s
recommendations.

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City of Gig Harbor, Washington
The program also includes improvements to the Skansie
House and Bogue Visitor Center and replacement of the
roof at the City-owned property at 7601 Soundview
Drive, and a visioning conversation regarding other city
facilities.

2027-2028 Biennial Budget

WASTEWATER
NUTRIENT REMOVAL
REQUIREMENTS

See Appendix A for the city’s CIP tables.

Water Capital Program
The Water Capital Program provides for improvements
to water supply, treatment, storage, transmission,
distribution, system redundancy, and replacement of
aging infrastructure. Capital needs are guided by the
City’s Water System Plan, regulatory requirements,
system condition, water quality, and projected long-term
demand.
The 2027–2028 program represents a significant
investment in water-system reliability and capacity.
Major projects include Well No. 9, the Canterwood Drive
Water Main Redundancy project, redevelopment of the
Wells 5 and 6 site, improvements to the Skansie Tank,
and the first phase of the City’s manganese treatment
program.
The program also includes continued replacement of
aging asbestos-cement water mains and participation in
coordinated pavement work where construction affects
or benefits water infrastructure.
An update to the City’s Water System Plan is included
later in the six-year capital planning period. That work
will help refine the next generation of water-system
improvements and financing needs.
See Appendix A for the city’s CIP tables.
Wastewater Capital Program
The Wastewater Capital Program provides for
rehabilitation and replacement of the City’s wastewater
collection and treatment infrastructure. Projects address
aging assets, reliability, regulatory requirements, inflow
and infiltration, system capacity, and the risk of
unplanned failures.
Budget Overview

In addition to these
projects, staff are working
on the evolving state
requirements intended to
reduce nutrient loads
from wastewater
treatment facilities that
are discharged to Puget
Sound. City staff are
working with the
Washington State
Department of Ecology
and technical consultants
to better understand the
regulatory requirements,
potential treatment
alternatives,
implementation timelines,
and available funding
strategies. At this time,
the City remains in the
planning and evaluation
phase, and no specific
capital project or final
implementation approach
has been selected.
However, the City
anticipates that additional
planning, regulatory
direction, and potentially
preliminary
implementation activities
may occur during the
2027–2028 biennium.

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The 2027–2028 program places particular emphasis on the City’s wastewater lift
stations. Major investments include rehabilitation of Lift Station 1, improvements to Lift
Station 14, continued work on Lift Station 5A, pump-control upgrades at Lift Stations 13
and 16, and future work at Lift Stations 2A, 10, and 11.
The program also includes funding for inflow and infiltration repairs and long-term
planning for treatment plant, gravity sewer, and additional lift-station improvements.
These projects reflect the increasing need to rehabilitate infrastructure that has been in
service for several decades. Replacing aging electrical controls, pumps, generators,
piping, and other components before failure reduces operational risk and helps maintain
reliable wastewater service.
See Appendix A for the city’s CIP tables.
Stormwater Capital Program
The Stormwater Capital Program provides infrastructure needed to collect and convey
stormwater, reduce flooding and erosion, protect water quality, restore aquatic habitat,
and meet the City’s environmental and regulatory responsibilities.
The largest 2027–2028 investment is the North Creek Culvert Replacement beneath
Harborview Drive. The project addresses an aging culvert and fish-passage barrier and
is intended to restore stream function and improve access to upstream habitat.
Other projects include prioritization and permitting for marine outfalls, improvements at
the Soundview Drive stormwater outfall, evaluation of the North Creek Remote Site
Incubator, and improvements associated with Peacock Hill Avenue and North
Harborview Drive.
The six-year program also identifies future culvert and stormwater system
improvements that remain subject to additional planning, design, permitting, funding,
and future Council appropriation.
See Appendix A for the city’s CIP tables.
Six-Year Capital Outlook
The 2027–2032 CIP provides a longer-term view of the City’s infrastructure needs than
can be addressed within a single biennial budget. Projects shown in 2029–2032 help
the City anticipate future capital costs, coordinate project sequencing, identify potential
funding gaps, and pursue grants or other outside resources before construction is
scheduled.

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City of Gig Harbor, Washington

2027-2028 Biennial Budget

These later-year projects are planning-level estimates and are not appropriated through
adoption of the 2027–2028 Budget. Cost estimates and funding strategies will continue
to change as projects advance through planning and design. Projects will be
reconsidered through future TIP updates, system-plan updates, PROS planning, capital
planning, and biennial budget processes.
The City’s capital program is therefore intended to be both disciplined and flexible:
disciplined in connecting expenditures to adopted plans, legal funding restrictions, and
Council priorities, while flexible enough to respond to changing infrastructure conditions,
community priorities, project readiness, and outside funding opportunities.

Budget Overview

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Appendix A

Streets CIP
#

Project / Funding

2027

2028

2029

2030

2031

2032

6-Yr Total

2027-28 Adopted Capital Projects
1

Wollochet Dr / SR-16 Eastbound Off-Ramp Right Turn Lane

$2,284,050

$2,284,050

2

38th Avenue Phase 2 Half-Width Roundabout Improvements

$5,967,214

$5,967,214

3

Peacock Hill Ave Half Street Improvements (Design/ROW)

4

Pavement Maintenance & ADA Improvements – Soundview / 38th / Borgen

$0

$100,000

$4,800,000

$4,900,000
$170,000

5

Canterwood Blvd Streetlight Installations

$170,000

6

Harborview Drive Downtown Revitalization – Outreach & Design

$800,000

$800,000

7

Engineering Program Management (Cost Allocation)

$553,516

$964,135

$1,517,651

8

Peacock Hill Ave Half Street Improvements - Construction

$100,000

$4,900,000

$5,000,000

2029-32 Planning-Level Capital Projects (Draft, Not Yet Adopted)
9

Intersection Improvements at Grandview Street/Pioneer Way

10

38th Ave Improvements Ph 1B Half-Street Improvements (Briarwood Ln to 50th St)

$580,000
$400,000

$400,000

11

38th Ave Improvements Ph 1B Half-Street Improvements (Briarwood Ln to 50th St)

$2,100,000

$2,100,000

12

38th Ave Improvements Ph 1C Half-Street Improvements (50th St to 56th St)

$500,000

$500,000

13

38th Ave Improvements Ph 1C Half-Street Improvements (50th St to 56th St)

$2,300,000

$2,300,000

14

50th St Ct Improvements

15

50th St Ct Improvements

16

Hunt St/38th Ave Intersection Improvements

17

$580,000

$100,000

$100,000

$1,900,000

$1,900,000

Hunt St/38th Ave Intersection Improvements

$1,400,000

$1,400,000

18

Pavement Maintenance and ADA Improvements - Point Fosdick Dr (at Briarwood Ln,
Cement Panel replacements)

$280,000

$280,000

19

Pavement Maintenance and ADA Improvements - Stinson Ave (Pioneer to Grandview)

$340,000

$340,000

20

Olympic Dr./Point Fosdick Dr. Right Turn Lane Expansion

$530,000

$530,000

21

Harborview Dr./Pioneer Way Improvements

22

Harborview Dr./Pioneer Way Improvements

$1,200,000

$1,200,000

23

Hunt St/Skansie Ave Intersection Improvements

24

Hunt St/Skansie Ave Intersection Improvements

$1,500,000

$1,500,000

25

Harborview Dr/ Soundview Intersection Improvements

$250,000

26

Harborview Dr/ Soundview Intersection Improvements

27

Burnham Dr. Improvements Phase 1B (N. Harborview to Eagle's Club)

28

$600,000

$600,000

$400,000

$400,000

$430,000

$430,000

$250,000

$950,000

$950,000

Burnham Dr. Improvements Phase 1B (N. Harborview to Eagle's Club)

$2,500,000

$2,500,000

29

Pavement Maintenance and ADA Improvements - Harborview DR (Pioneer to Stinson)

$1,900,000

$1,900,000

30

Pavement Maintenance and ADA Improvements - Borgen BLVD (Peacock Hill to
Burnham)

$1,100,000

$1,100,000

31

Roundabout Striping and Signage Analysis (Borgen BLVD/Burnham Dr Corridor)

$280,000

$280,000

32

Grandview St Half-Width frontage improvements - Phase 1

$2,600,000

$2,600,000

$400,000

$400,000

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Streets CIP
#

Project / Funding

2027

2028

2029

2030

2031

2032

6-Yr Total

2027-28 Adopted Capital Projects
33

Wagner Way Sidewalk Improvements

$200,000

$200,000

34

North Harborview Dr Sidewalk ADA Improvements

$105,000

$105,000

35

Soundview Dr/Hunt St Intersection Improvements

36

Soundview Dr/Hunt St Intersection Improvements

$1,100,000

$1,100,000

37

Burnham Dr Ph.2 Improvements (MCCormick to Borgen)

$1,000,000

38

Burnham Dr Ph.2 Improvements (MCCormick to Borgen)

39

Rosedale Street/Skansie Avenue Intersection Improvements

40

Rosedale Street/Skansie Avenue Intersection Improvements

41

Borgen Blvd/SR-16 WB Off-Ramp Metering Study

42

Borgen Blvd/SR-16 WB Off-Ramp Metering Study

43

Austin St/Harborview Dr Roundabout

44

Austin St/Harborview Dr Roundabout

45

Cushman Trail Phase 5A

46

Cushman Trail Phase 5A

47

Olympic Drive/SR-16 Intersection Improvements

48

Olympic Drive/SR-16 Intersection Improvements

49

Grandview Street Improvements (McDonald Ave to Stinson Ave)

50

Grandview Street Improvements (McDonald Ave to Stinson Ave)

51

Skansie Avenue Improvements

52

Wollochet Drive Interchange Improvements (Kimball Dr to Hunt St)

53

Wollochet Drive Interchange Improvements (Kimball Dr to Hunt St)

54

Vernhardson Street Improvements

55

Vernhardson Street Improvements

56

$500,000

$1,000,000

$4,400,000
$500,000

$1,900,000

$400,000

$400,000

$400,000

$400,000

$600,000

$600,000

$2,500,000
$200,000

$250,000

$1,200,000

$260,000

$260,000

$1,840,000

$1,840,000

$800,000
$1,500,000
$10,000,000

$10,000,000

$3,750,000

$3,750,000

$27,650,000

$80,358,915

$800,000

$75,000

$12,690,000

$16,110,000

$800,000
$1,500,000

$800,000

$3,270,000

$900,000
$250,000

$1,200,000

$11,634,135

$2,500,000
$200,000

$900,000

$9,004,780

$4,400,000
$500,000

$1,900,000

Olympic Drive and Spur to Hollycroft

Total Projects

$500,000

$75,000

Funding Sources:
2027-28 (Adopted)
State Funding (WSDOT / Direct State Grants)

$1,680,000

TIB Grant (Transportation Improvement Board)

$2,241,747

$2,800,000

$5,041,747

Transfer In – Transportation Benefit District (Fund 650)

$2,933,517

$2,851,990

$5,785,507

Transfer In – Hospital Benefit Zone (Fund 310)

$100,000

$5,327,555

$5,427,555

Transfer In – Impact Fee Trust (Fund 309)

$1,820,032

Transfer In – REET (Funds 301/305)

$260,000

$1,680,000

$1,820,032

$624,074

$884,074

2029-32 (Planning-Level, Draft)

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Streets CIP
#

Project / Funding

2027

2028

2029

2030

2031

2032

6-Yr Total

2027-28 Adopted Capital Projects
Transportation Impact Fee (Fund 309)

$400,000

TIB Grant (Transportation Improvement Board)

Total Funding Sources

$400,000

$400,000

$400,000

$1,600,000

$6,600,000

$3,150,000

$7,450,000

$17,200,000

Federal Funds (STP / Other Federal-Aid)

$800,000

$800,000

$8,000,000

$9,600,000

Local Match/Unidentified

$2,070,000

$5,690,000

$11,760,000

$11,800,000

$31,320,000

$3,270,000

$12,690,000

$16,110,000

$27,650,000

$80,358,915

$9,035,296

$11,603,619

Streets - projects numbered per table above
1 Wollochet Dr / SR-16 Eastbound Off-Ramp Right Turn Lane. This work was initiated as part of the 2025-26 budget. The 2027-28 budget will complete the design and
construction of a right turn lane on the SR 16 eastbound off-ramp approaching the signal at Wollochet Drive.
2 38th Avenue Phase 2 Half-Width Roundabout Improvements. This objective will construct half-width roadway improvements along the east side of 38th Avenue from 56th
Street to Hunt Street and coordinate the installation of dry sewer in accordance with the associated Wastewater Capital objective.
3 Peacock Hill Ave Half Street Improvements (Design/ROW). The city initiated a design contract in 2024 to install city standard half-street frontage improvements along the
west side of Peacock Hill Avenue between the 9900 block and Apollo Way. Due to topography, the project will require property acquisition to install slopes and/or walls
behind sidewalk.
4 Pavement Maintenance & ADA Improvements – Soundview / 38th / Borgen. This project will improve pavement conditions, accessibility, and safety along key roadway
corridors throughout the City.
5 Canterwood Blvd Streetlight Installations. A new multifamily apartment complex was approved without the requirement to install full city frontage improvements. The
developer and the city agreed the apartment complex will install some frontage improvements and the city will install the associated streetlight fixtures.
6 Harborview Drive Downtown Revitalization – Outreach & Design. This project will request community input and complete the design along the City's primary corridor in
downtown and along the waterfront.
7 Engineering Program Management (Cost Allocation). Engineering staff time allocated to managing this division's capital program. See the Central Service Funds & Cost
Allocation Plan narrative for methodology.
8 The city initiated a design contract in 2024 to install city standard half-street frontage improvements along the west side of Peacock Hill Avenue between the 9900 block and
Apollo Way. Due to topography, the project will require property acquisition to install slopes and/or walls behind sidewalk. Additionally, in conjunction with
this street improvement project, and due to economies of scale, the city is installing a new watermain along the limits of the street improvements

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Parks CIP
#

Project / Funding

2027

2028

2029

2030

2031

2032

6-Yr Total

2027-28 Adopted Capital Projects
1

Commercial Fishing Homeport

$3,300,000

$3,300,000

2

Cushman Trail Connection to N. Harborview Dr

$210,000

$210,000

3

Welcome Plaza Splash Pad Plumbing & Rewiring

$325,000

$325,000

4

Crescent Creek Park (Play Area / Restroom / Ph. 1A Design)

$655,000

5

Finholm View Climb

$30,000

$30,000

6

Wilkinson Farm Park Development

$105,000

$105,000

$500,000

$500,000

7

Cushman Trail Ph. 5A – Design & Permitting

8

PW Admin / Engineering Program Management (Cost Allocation)

9

Sports Complex Phase 2 Design & Permitting

$655,000

$444,231

$201,284

$645,515

$1,300,000

$1,300,000

2029-32 Planning-Level Capital Projects (Draft, Not Yet Adopted)
10

Masonic Lodge Remodel Design and Engineering

$250,000

$250,000

11

7601 Soundview House Upgrades

$540,000

$540,000

12

Jerisich Dock

$66,000

$66,000

13

Basketball Court at Civic Center

$155,000

$155,000

14

Grandview Forest/Skate Park restroom

$230,000

$230,000

15

Crescent Creek Park Phase 1B - Design & permitting

$130,000

16

Sports Complex Phase 3 Design & permitting

$130,000

$1,700,000

$1,700,000

17

Veteran's Memorial Park Phase 2

$550,000

18

Shaw Park Analysis and Remediation

$90,000

$90,000

19

Cushman Trail - 96th St. Trailhead Impts

$500,000

$500,000

20

Jerisich Dock Float Extention

$1,143,000

21

Trail Corridors

$715,000

22

Conservation Area Trails, Foundation Removal/Cleanup

$50,000

$50,000

23

Conservatoin Area Pedestrian Bridge

$250,000

$250,000

24

Cons. Area Ph. 3 Parking lot design

$250,000

$250,000

25

Love Lock Art Project - Design and Installation

$38,000

$38,000

$1,303,000

$13,727,515

Total Projects

$4,934,231

$2,136,284

$1,371,000

$1,700,000

$2,283,000

$550,000

$1,143,000
$715,000

Funding Sources:
2027-28 (Adopted)
Investment Interest

$4,000

$4,000

$8,000

Transfer In – REET (Funds 301/305), recurring share

$260,000

$260,000

$520,000

Transfer In – REET (Funds 301/305), Commercial Fishing Homeport

$1,701,510

Transfer In – Parks Impact Fee Trust (Fund 309), Internal Engineering

$420,231

$1,701,510

$72,284

$492,515

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Parks CIP
#

Project / Funding

2027

2028

2029

2030

2031

2032

6-Yr Total

Transfer In – Parks Impact Fee Trust (Fund 309)

$0

$1,300,000

$1,300,000

Transfer In – Transportation Impact Fee Trust (Fund 309), Cushman Trail

$210,000

$500,000

$710,000

Transfer In – Hospital Benefit Zone (Fund 310), Commercial Fishing Homeport

$2,338,490

$2,338,490

2029-32 (Planning-Level, Draft)

Total Funding Sources

Park Impact Fee (Fund 309)

$40,000

Jerisich Dock Moorage Fund (dedicated)

$66,000

Unidentified / Funding Not Yet Determined

$4,934,231

$2,136,284

$40,000

$40,000

$40,000

$160,000

$1,265,000

$1,660,000

$2,243,000

$1,263,000

$6,431,000

$1,371,000

$1,700,000

$2,283,000

$1,303,000

$13,727,515

$66,000

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Parks CIP
#

Project / Funding

2027

2028

2029

2030

2031

2032

6-Yr Total

Parks - projects numbered per table above
1 Commercial Fishing Homeport. Design, permitting, and bidding were completed in 2026. This objective funds the remaining portion of the construction contract for the new
float system for the commercial fishing homeport at the park.
2 Cushman Trail Connection to N. Harborview Dr. Since construction of Cushman Trail Phase 2 from Grandview Street to 96th Street, the city, along with the Morning Rotary,
the Downtown Waterfront Alliance, and multiple individuals, have considered a spur trail connecting Cushman Trail to the Donkey Creek Park area.
3 Welcome Plaza Splash Pad Plumbing & Rewiring. The splash pad at the Welcome Plaza in Skansie Park was originally designed in 2016 as an artistic water feature, then
modified during construction into a publicly accessible splash pad — today a well-loved amenity for residents and visitors.
4 Crescent Creek Park (Play Area / Restroom / Ph. 1A Design). Combines three related Crescent Creek Park objectives: resurfacing the aging pebble-flex play area and
remediating the adjacent sand pit; Phase 1A design/permitting to rebuild the volleyball courts and add a partial parking lot off Crescent Valley Drive; and replacing the 1970sera restroom building, which does not meet current ADA standards.
5 Finholm View Climb. Structural failures in 2023 highlighted the need for a full structural analysis of the City's Finholm View Climb. This work also includes design and
permitting for future improvements to the structure.
6 Wilkinson Farm Park Development. Listed in the source CIP workbook as “Wilkinson Barn Stabilization.” Staff will hire a structural engineer to evaluate the historic Wilkinson
Barn and a contractor to implement its recommendations, stabilizing the barn while a public process determines future uses for it and the rest of the park.
7 Cushman Trail Ph. 5A – Design & Permitting. Cushman Trail Phase 5A will expand the trail from the Borgen trailhead across Borgen Boulevard north to city limits at
Canterwood Boulevard, requiring a bridge over Borgen and boardwalks across wetland areas, tying in to St. Anthony's hospital.
8 PW Admin / Engineering Program Management (Cost Allocation). Engineering staff time allocated to managing this division's capital program. See the Central Service Funds
& Cost Allocation Plan narrative for methodology.
9 Phase 2 of the Sports Complex will regrade and redesign fields at Peninisula Light Fields to change two baseball fields into multi-sport fields with new lighting and artificial
turf. The large baseball field will remain laid out for baseball. It will also replace the aging septic system with sewer. This layout was adopted as part of the Gig Harbor Sports
Complex Phase 2 & 3 Feasibility Study that was completed in 2024.

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Page 141 of 153

Facilities CIP
#

Project / Funding

2027

2028

2029

2030

2031

2032

6-Yr Total

2027-28 Adopted Capital Projects
1

Civic Center Police Dept. Security Gate Upgrades

$85,000

2

Civic Center Fire System & Intrusion Upgrades

$10,000

3

Operations Center Decant Facility & Fueling Station

$140,000

$1,840,000

$1,980,000

4

Skansie House HVAC Improvements

$50,000

$150,000

$200,000

5

Civic Center Backup Generator Replacement – Feasibility Study

$12,000

$12,000

6

Civic Center Architectural Review of Interior Layout

$175,000

$175,000

7

Civic Center LED Lighting Improvements

$75,000

8

Bogue Visitor's Center Improvements

$15,000

9

7601 Soundview House – Roof Replacement

$30,000

10

City Owned Facility Analysis and Visioning

$85,000
$10,000

$75,000

$50,000

$65,000
$30,000

$50,000

$50,000

2029-32 Planning-Level Capital Projects (Draft, Not Yet Adopted)
$0

Total Projects

$592,000

$2,090,000

$0

$0

$0

$0

$50,000

$50,000

$592,000

$440,000

$1,032,000

$2,682,000

Funding Sources:
2027-28 (Adopted)
Fund Balance
Transfer In – REET (Funds 301/305)
Dept. of Ecology Grant – Decant Facility

$400,000

$400,000

FCZD Opportunity Fund – Decant Facility

$400,000

$400,000

Transfer In – Storm Operating (Fund 411), Decant Facility cost-share

$800,000

$800,000

2029-32 (Planning-Level, Draft)

Total Funding Sources

$592,000

$2,090,000

$0

$0

$0

$0

$2,682,000

Facilities - projects numbered per table above
1 Civic Center Police Dept. Security Gate Upgrades. Replaces the two original security gates at the Civic Center, which are worn and require routine maintenance for which
most parts are no longer available.
2 Civic Center Fire System & Intrusion Upgrades. The current building fire system at the Civic Center was installed when the building was constructed over 19 years ago; the
current equipment and software are no longer supported by the vendor.

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3 Operations Center Decant Facility & Fueling Station. The City currently relies on the City of Port Orchard's decant facility for disposal of vactor waste through an interlocal
agreement; this project builds the City's own facility.
4 Skansie House HVAC Improvements. The city leases the Skansie House to Harbor WildWatch for marine educational programming and staff offices. The house has central
heating but no air conditioning.
5 Civic Center Backup Generator Replacement – Feasibility Study. The current Civic Center backup generator and automatic transfer switch were installed when the building
was constructed over 19 years ago and are aging and undersized for the building.
6 Civic Center Architectural Review of Interior Layout. The Civic Center was constructed in 2003. The city has since filled most of its workstations and needs to repurpose
other areas of the building.
7 Civic Center LED Lighting Improvements. The Civic Center has a mix of light bulb types (high pressure sodium, fluorescent, LED). This project systematically converts
fixtures and bulbs to energy-efficient LED.
8 Bogue Visitor's Center Improvements. The Gig Harbor Chamber of Commerce leases the Bogue Visitor's Center from the city. This is an older building that has had many
small improvements performed over the past few years.
9 7601 Soundview House – Replace the roof to preserve the structure.
10 The City has proactively acquired several properties over the years to provide land and facilities for the community. Now that these properties have been preserved for public
use, the city would like to explore what the next phase of these properties lives should entail through a public outreach and analysis process. Specifically, staff have identified
the Masonic Lodge, Wilkison House and Soundview House among several other city owned properties along the waterfront.

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Page 143 of 153

Water CIP
#

Project / Funding

2027

2028

2029

2030

2031

2032

6-Yr Total

2027-28 Adopted Capital Projects
1

Manganese Treatment Ph. 1 – Design, Permitting & Construction

$500,000

2

Pavement Maintenance & ADA – Soundview Dr (Water Main)

$1,030,000

$2,350,000

3

Well House 5/6 Site Redevelopment / Future Treatment Integration

$2,500,000

$2,500,000

4

Conjunctive Supply Strategy

$280,000

$280,000

5

Asbestos/Cement Watermain Replacements – Citywide

$710,000

$710,000

6

Canterwood Drive Water Main Redundancy

$100,000

$1,890,000

$1,990,000

7

Skansie Tank Modifications & Re-Paint

$200,000

$2,000,000

8

Well #9 – GHN Permitting / Design

$3,550,000

9

Engineering Program Management (Cost Allocation)

$366,968

10

PeacockHill Roadway Half Street Improvements (Water Main)

$2,850,000
$1,030,000

$2,200,000

$3,550,000

$7,100,000

$1,140,132

$1,507,100

$1,080,000

$1,080,000

2029-32 Planning-Level Capital Projects (Draft, Not Yet Adopted)
11

Asbestos Water Main Replacement Program

$2,240,000

$2,240,000

12

Sehmel Dr NW & Burnham Dr NW Water Main Redundancy

$400,000

$400,000

13

Sehmel Dr NW & Burnham Dr NW Water Main Redundancy

14

Deer Creek Lane Water Main Improvements

15

Reid Dr NW Between 56th St NW and 55th St NW

16

Reid Dr NW Between 56th St NW and 55th St NW

$400,000

$400,000

17

Gig Harbor North Tank Repainting

$1,109,000

$1,109,000

18

Satellite Wastewater Reuse Plant (Water Capital Share)

$984,000

$984,000

19

Well House 3 Reconstruction

$450,000

$450,000

20

Water System Plan Update

21

Water System Plan Update

Total Projects

$1,901,000

$1,901,000

$90,000

$90,000

$150,000

$150,000

$250,000

$5,746,968

$11,950,132

$6,190,000

$2,051,000

$1,849,000

$250,000

$350,000

$350,000

$1,784,000

$29,571,100

Funding Sources:
2027-28 (Adopted)
$2,351,499

$2,351,499

Bond Proceeds

Fund Balance
$3,600,000

$7,440,000

$11,040,000

Other – Aid to Construction

$100,000

$100,000

$200,000

Transfer In – Water Operating Fund (401)

$3,159,717

$2,058,633

$5,218,350

2029-32 (Planning-Level, Draft)
Fund Balance

$1,550,000

Revenue Bond Proceeds

$4,240,000

Water Capital Fund (utility rate revenue)

$400,000

$1,550,000

$2,051,000

$1,849,000

$1,500,000

$5,740,000

$284,000

$4,584,000

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Page 144 of 153

Water CIP
#

Project / Funding
Total Funding Sources

2027

2028
$6,859,717

2029
$11,950,132

2030
$6,190,000

2031
$2,051,000

2032
$1,849,000

6-Yr Total
$1,784,000

$30,683,849

Water - projects numbered per table above
1 Manganese Treatment Ph. 1 – Design, Permitting & Construction. Some well sources in the city's water system contain manganese levels higher than recommended by
government organizations; this project designs and constructs treatment to address it.
2 Pavement Maintenance & ADA – Soundview Dr (Water Main). Water main work coordinated with the citywide Pavement Maintenance and ADA Improvements project, which
improves pavement conditions, accessibility, and safety along key roadway corridors.
3 Well House 5/6 Site Redevelopment / Future Treatment Integration. The single well house supporting Wells #5 and #6 is the city's largest water-producing site. The current
building is undersized for its equipment and piping and needs reconstruction due to its age.
4 Conjunctive Supply Strategy.
5 Asbestos/Cement Watermain Replacements – Citywide. Part of an ongoing effort to replace old asbestos-cement watermains, addressing segments including Cushman Trail
(Rosedale to Foster), Grandview Street (Civic Center to Soundview Drive), and the Grandview tank site.
6 Canterwood Drive Water Main Redundancy. The watermain feeding the north end of Canterwood Drive is currently a dead-end main; if it failed, this area — including St.
Anthony's Hospital — could be without water service until repaired.
7 Skansie Tank Modifications & Re-Paint. The Skansie tank, one of two primary storage tanks for the 440 pressure zone, needs new interior and exterior painting due to its
age and existing paint condition.
8 Well #9 – GHN Permitting / Design. Per the city's 2018 Water System Plan, the city is developing Well #9 in Gig Harbor North at Shaw Park as a redundant groundwater
supply, mitigating the need for additional standby storage.
9 Engineering Program Management (Cost Allocation). Engineering staff time allocated to managing this division's capital program. See the Central Service Funds & Cost
Allocation Plan narrative for methodology.

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Page 145 of 153

Wastewater CIP
#

Project / Funding

2027

2028

2029

2030

2031

2032

6-Yr Total

2027-28 Adopted Capital Projects
1

Lift Stations 13 & 16 Pump Control Upgrades

$200,000

$200,000

2

Lift Station 1 Rehabilitation

$4,220,000

$4,220,000

3

Lift Station 14 (Wagner Way) Upgrades

$3,350,000

$3,350,000

4

Lift Station 5A Improvements

$1,600,000

5

Inflow & Infiltration Repairs

$350,000

6

Lift Station 2A & 11 Repair / Generator Replacement

$350,000

$350,000

7

Lift Station 10 / ULID Improvements

$3,600,000

$3,600,000

8

Engineering Program Management (Cost Allocation)

$369,169

$1,008,293

$1,600,000

$639,124

$350,000

2029-32 Planning-Level Capital Projects (Draft, Not Yet Adopted)
9

Lift Station 10 (56th St/ 36th Ave) Improvements ( Upgrades to Smith & Loveless Pump
Package)

$1,000,000

$1,000,000

10

WWTP Aeration Piping Repairs

$500,000

$500,000

11

Wastewater Treatment Plant Digester Upgrades/ Centrifuge Amnonia Control

$3,500,000

$3,500,000

12

Centrifuge VFD and Control Component Replacement

$40,000

$40,000

13

38th Ave Dry Sewer- Design and Construction

$2,244,167

$2,244,167

14

Stinson Slip Lining Sewer Main

$40,000

$40,000

15

Upsize Gravity Pipe on Burnham Dr

$3,800,000

$3,800,000

16

Wasterwater Treatment Plant Ultraviolet Disinfection System Upgrades

$869,000

17

Lift Station 11 (38th Ave/48th St) Improvements

$300,000

$300,000

18

N. Harborview Dr Gravity Main Improvements

$2,000,000

$2,000,000

19

Lift Station 17 (Skansie Ave/89th St) Design LID

$500,000

$500,000

20

Burnham Dr/Harborview Dr Gravity Main Bypass

$190,000

21

Lift Station 16A (McCormick Ridge Condos) Improvements

22

Relocate 400 LF of sewer main for new fish passable culvert on 50th Street

23

Relocate 400 LF of sewer main for new fish passable culvert on 50th Street

Total Projects

$869,000

$190,000

$2,500,000
$10,000

$10,009,124

$4,669,169

$5,000,000

$6,124,167

$3,869,000

$2,500,000
$10,000

$26,187

$26,187

$2,526,187

$32,197,647

Funding Sources:
2027-28 (Adopted)
Fund Balance

$3,698,001

$415,042

$4,113,043

Connection Fees / Aid to Construction

$500,000

$500,000

$1,000,000

Interfund Loan #1 – Interest & Principal

$106,997

$101,937

$208,934

Interfund Loan #2 – Interest & Principal

$290,850

$279,300

Pierce County FCZD Grant – Lift Station 5

$1,000,000

$1,000,000

PWB Loan Proceeds – Lift Station 5A

$600,000

$600,000

$570,150

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Wastewater CIP
#

Project / Funding

2027

2028

Revenue Bond Proceeds
Transfer In – Sewer Operating Fund (402)

$3,813,276

2029

2030

2031

2032

6-Yr Total

$1,540,000

$1,540,000

$1,832,890

$5,646,166

2029-32 (Planning-Level, Draft)
Revenue Bond Proceeds

$5,000,000

Wastewater Capital Fund (utility rate revenue)

Total Funding Sources

$10,009,124

$4,669,169

$5,000,000

$5,000,000

$6,124,167

$3,869,000

$2,526,187

$12,519,354

$6,124,167

$3,869,000

$2,526,187

$32,197,647

Wastewater - projects numbered per table above
1 Lift Stations 13 & 16 Pump Control Upgrades. The pump control equipment at both lift stations is unreliable and no longer manufactured; in 2024, new control panel and
equipment for Lift Station 16 was designed for construction.
2 Lift Station 1 Rehabilitation. Lift Station 1, located in Crescent Creek Park, was constructed more than 50 years ago. This project rehabilitates the existing wet well, installs a
backup generator, coats manholes, and constructs a new lift station building.
3 Lift Station 14 (Wagner Way) Upgrades. Lift Station 14, built in 2001, receives a high load of hydrogen-sulfide-laden effluent from the Wollochet Bay Sewer District, which
has significantly damaged station infrastructure.
4 Lift Station 5A Improvements. Lift Station 5 is located along the shoreline of Gig Harbor Bay, adjacent to residential houses in the 2800 block of Harborview Drive.
5 Inflow & Infiltration Repairs.
6 Lift Station 2A & 11 Repair / Generator Replacement.
7 Lift Station 10 / ULID Improvements.
8 Engineering Program Management (Cost Allocation). Engineering staff time allocated to managing this division's capital program. See the Central Service Funds & Cost
Allocation Plan narrative for methodology.

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Stormwater CIP
#

Project / Funding

2027

2028

2029

2030

2031

2032

6-Yr Total

2027-28 Adopted Capital Projects
1

North Creek Culvert Replacement – Design & Permitting

$9,800,000

$9,800,000

2

Stormwater Prioritization & Permitting – Marine Outfalls

$300,000

$300,000

3

Improvements at Soundview Dr Stormwater Outfall

$250,000

$250,000

4

North Creek Remote Site Incubator – Feasibility Study

$50,000

5

Peacock Hill Ave / N. Harborview Dr Storm Improvements & Outfall

6

Engineering Program Management (Cost Allocation)

$50,000

$1,000,000

$1,000,000

$85,853

$795,233

$709,380

2029-32 Planning-Level Capital Projects (Draft, Not Yet Adopted)
7

Culvert Replacement Feasibility Study at the 4300 block of 38th Ave

8

Crescent Creek Culvert Replacement

9

Stinson Ave Replacement and Extension

10

50th St Culvert Replacement

11

50th St Culvert Replacement

12

Storm Pipe Slip Lining (describe what if any projects are still needed)

Total Projects

$450,000

$450,000

$1,400,000

$1,400,000

$500,000

$500,000

$217,126

$217,126

$50,000

$11,109,380

$1,085,853

$450,000

$1,450,000

$50,000

$717,126

$350,000

$350,000

$350,000

$15,162,359

Funding Sources:
2027-28 (Adopted)
Fund Balance

$927,162

$927,162

North Creek Culvert Replacement Grant

$2,400,000

$2,400,000

Other / Aid to Construction

$75,000

$75,000

$150,000

Revenue Bond Proceeds

$5,400,000

$1,520,000

$6,920,000

Transfer In – Storm Operating Fund (411)

$2,307,218

$2,307,218

2029-32 (Planning-Level, Draft)
Storm Capital Fund (utility rate revenue)

Total Funding Sources

$11,109,380

$1,595,000

$450,000

$1,450,000

$717,126

$350,000

$2,967,126

$450,000

$1,450,000

$717,126

$350,000

$15,671,506

Stormwater - projects numbered per table above
1 North Creek Culvert Replacement – Design & Permitting. Replaces the existing aging culvert beneath Harborview Drive with a new bridge structure to restore fish passage,
improve stream function, and address long-term infrastructure needs.

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2 Stormwater Prioritization & Permitting – Marine Outfalls. Per the city's NPDES Stormwater Permit, the city has completed an inventory of all stormwater outfalls; this project
prioritizes and permits upgrades to marine-discharge outfalls.
3 Improvements at Soundview Dr Stormwater Outfall. The stormwater outfall at the northern terminus of Soundview Drive discharges large volumes of stormwater onto the
beach at high velocity during heavy rain.
4 North Creek Remote Site Incubator – Feasibility Study. Evaluates options for the future of the Remote Site Incubator (RSI) facility located in North Creek at Donkey Creek
Park.
5 Peacock Hill Ave / N. Harborview Dr Storm Improvements & Outfall. Replaces 1,640 feet of 12-inch concrete pipe with 18-inch CPE along Peacock Hill Ave. and 415 feet of
18-inch concrete pipe with 24-inch CPE along North Harborview Dr.; may include a regional storm facility.
6 Engineering Program Management (Cost Allocation). Engineering staff time allocated to managing this division's capital program. See the Central Service Funds & Cost
Allocation Plan narrative for methodology.

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Appendix B

ORDINANCE NO. XXXX
AN ORDINANCE OF THE CITY OF GIG HARBOR,
WASHINGTON, ADOPTING THE 2027-2028 BIENNIAL
BUDGET; ESTABLISHING APPROPRIATIONS OF FUNDS
FOR THE 2027-2028 BIENNIUM; TRANSMITTING BUDGET
COPIES
TO
THE
STATE;
PROVIDING
FOR
SEVERABILITY AND ESTABLISHING AN EFFECTIVE
DATE.

WHEREAS, the Mayor of the City of Gig Harbor, Washington completed and
placed on file with the City Clerk a proposed budget and estimate of the amount of the
monies required to meet the public expenses, bond retirement and interest, reserve funds
and expenses of government of the City for the 2027-2028 biennium; and
WHEREAS, the City of Gig Harbor published notice that the Gig Harbor City
Council would meet on November 9, 2026 and November 23, 2026 at 5:30 p.m., in the
Gig Harbor Council Chambers for the purpose of providing the public an opportunity to
be heard on the proposed budget for the 2027-2028 biennium and to adopt the budget;
and
WHEREAS, the City Council did meet at the dates and times so specified, and
heard testimony of interested citizens and taxpayers; and
WHEREAS, the 2027-2028 proposed biennial budget does not exceed the lawful
limit of taxation allowed by law to be levied on the property within the City of Gig Harbor
for the purposes set forth in the budget, and the estimated expenditures set forth in the
budget being all necessary to carry on the government of Gig Harbor for the 2027-2028
biennium; now, therefore,
THE CITY COUNCIL OF THE CITY OF GIG HARBOR, WASHINGTON, DO
ORDAIN AS FOLLOWS:
Section 1.
Budget Adopted. The budget for the City of Gig Harbor, Washington,
for the 2026-2027 biennium, on file with the City Clerk, is hereby adopted in its final form
and content.
Section 2.
Funds Appropriated. Estimated resources, including beginning fund
balances, for each separate fund of the City of Gig Harbor, and aggregate total for all
funds combined, for the 2027-2028 biennium are set forth in summary form in Exhibit A,
and are hereby appropriated for expenditure during the 2027-2028 biennium.

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Section 3.
Salary Schedule. Exhibit B is adopted as the 2027 personnel salary
schedule for all employees.
Section 4.
Transmittal. The City Clerk is directed to transmit a certified copy of
the 2027-2028 budget hereby adopted to the Division of Municipal Corporations in the
Office of the State Auditor and to the Association of Washington Cities.
Section 5.
Severability. If any section, sentence, clause or phrase of this
ordinance should be held to be unconstitutional by a court of competent jurisdiction, such
invalidity or unconstitutionality shall not affect the validity or constitutionality of any other
section, sentence, clause or phrase of this ordinance.
Section 6.
Effective Date. This ordinance shall be in force and take effect five
(5) days after its publication according to law.
PASSED by the City Council of the City of Gig Harbor, Washington, and approved by its
Mayor at a regular meeting of the council held on this 23rd day of November, 2026.
CITY OF GIG HARBOR
________________________________
Mayor Mary Barber
ATTEST/AUTHENTICATED:

Tiffany Aliment, City Clerk
APPROVED AS TO FORM:
OFFICE OF THE CITY ATTORNEY

Daniel P Kenny
FILED WITH THE CITY CLERK:
PASSED BY THE CITY COUNCIL:
PUBLISHED:
EFFECTIVE DATE:
ORDINANCE NO.

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Exhibit B

2027 Wage and FTE Matrix
Permenant Position
Elected
Council
Mayor
Unrepresented Employees
Assistant Public Works Director
Business & Policy Analyst
Chief of Police
City Administrator
City Clerk
Communications Assistant
Communications Manager
Community Development Director
Controller^
Co-Responder
Deputy City Administrator
Executive Assistant
Finance Director
Housing, Health & Human Services Program Manager
Human Resources / Payroll Specialist
Human Resources Coordinator
Human Resources Director
Human Resources Generalist
Information Technology Services Director^
Police Lieutenant
Public Works Director
Risk & Safety Program Manager
GU-117 Wages (Per CBA)
Assistant Building Official / Fire Marshal
Assistant Planner
Associate Engineer
Associate Planner
Building Inspector / Plans Reviewer
Building Maintenance Technician
Code Compliance Officer
Community Development Assistant
Construction Inspector
Construction Supervisor
Contract Administrator
Court Assistant
Custodian
Development Review Engineer
Engineering Project Manager
Engineering Technician
Finance Technician
GIS Coordinator
Information Technology Services Support Technician
Infrastructure Systems Engineer
Judicial Specialist

FTE's
25-26

FTE's
27-28

ELC-Elected
ELC-Elected

7
1

7
1

9,240
26,400

-

PW-Admin
ADM-Administration
PD-Admin
ADM-Administration
ADM-Administration
ADM-Administration
ADM-Administration
CD-Admin
ADM-Finance
ADM-H3
ADM-Administration
ADM-Administration
ADM-Finance
ADM-H3
ADM-HR
ADM-HR
ADM-HR
ADM-HR
PW-Admin
PD-Admin
PW-Admin
ADM-HR

1
0
1
1
1
0
1
1
0
0
0
1
1
1
1
1
1
1
0
2
1
1

1
1
1
1
1
1
1
1
1
1
1
1
0
1
1
1
1
1
1
2
1
1

157,207
98,951
193,115
224,002
108,867
57,990
98,951
178,778

190,464
123,780
241,572
280,209
136,184
72,530
123,780
223,637

92,664
201,602
89,970
178,778
119,740
89,970
70,907
178,778
119,740

115,918
252,188
112,546
223,637
149,785
112,546
88,698
223,637
149,785

149,350
178,778
98,951

186,825
223,637
123,780

CD-Building
CD-Planning
PW-Engineering
CD-Planning
CD-Building
PW-Facilities
CD-Admin
CD-Planning
PW-Engineering
PW-Engineering
PW-Engineering
CT-Municipal Court
PW-Facilities
PW-Engineering
PW-Engineering
PW-Engineering
ADM-Finance
PW-Admin
ADM-ITS
ADM-ITS
CT-Municipal Court

1
1
1
1
1
1
1
1
1
2
2
0.6
1
1
1
2
3
1
1
1
2

1
1
0
1
1
1
1
1
1
2
2
0.6
3
0
1
2
3
1
1
1
2

98,951
81,787
108,867
89,970
89,970
81,787
81,787
66,355
89,970
98,951
89,970
57,989
57,989
108,867
98,951
81,787
73,034
89,970
81,787
128,458
73,034

123,780
102,309
136,184
112,546
112,546
102,309
102,309
83,005
112,546
123,780
112,546
72,540
72,540
136,184
123,780
102,309
91,359
112,546
102,309
160,692
91,359

Department

Low

High

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Permenant Position
Laborer
Maintenance Technician
Maintenance Technician
Maintenance Technician
Mechanic
NPDES Coordinator
Payroll / Benefits Administrator
Permit Coordinator
Planning Tech
Police Services Specialist
Property, Evidence & Forensics Tech^
Public Works Assistant
Senior Accountant
Senior Engineer
Senior Planner
Utility Billing Technician
Wastewater Lead Operator
Wastewater Operator II
Wastewater Collection System Technician
Water Operator III
Water Operator II
Water Operator I
Water Quality Specialist
Local-117 Wages (Per Current CBA - Unsettled)
Police Sergeant
Police Officer
SU-313 Wages (Per CBA)
Building Official / Fire Marshal
City Engineer
Court Administrator
ITS Manager
Operations Supervisor Grounds & Facilities
Operations Supervisor Streets & Storm
Parks Manager
Principal Planner
Operations Supervisor Water
Operations Supervisor Wastewater
Total FTE's*
*Total FTE's do not include elected officials.
^Pending Bargaining

Permenant Position
Summer Help
Summer Help

Department
PW-Parks_Facilities
PW-Streets_Storm
PW-Parks_Facilities
PW-Sewer
PW-Streets_Storm
PW-Engineering
ADM-HR
CD-Building
CD-Planning
PD-Admin
PD-Admin
PW-Admin
ADM-Finance
PW-Engineering
CD-Planning
ADM-Finance
PW-Sewer
PW-Sewer
PW-Sewer
PW-Water
PW-Water
PW-Water
PW-Water
PD-Ops
PD-Ops
CD-Building
PW-Engineering
CT-Municipal Court
ADM-ITS
PW-Parks_Facilities
PW-Maintenance
PW-Admin
CD-Planning
PW-Water
PW-Sewer

Department
PW-Sewer
PW-Parks_Facilities

FTE's
25-26
6
6
3
3
1
1
1
1
2
2
1
4
2
2
2
2
1
4
1
2
1
2
1

FTE's
27-28
6
6
3
3
1
1
1
1
2
2
1
4
1
3
2
2
1

5
18

Low
57,989
73,034
73,034
73,034
89,970
98,951
98,951
81,787
73,034
66,355

High
72,540
91,359
91,359
91,359
112,546
123,780
123,780
102,309
91,359
83,005

66,355
108,867
131,707
119,740
73,034
119,740
98,951
73,034
108,867
98,951
81,787
81,787

83,005
136,184
164,755
149,785
91,359
149,785
123,780
91,359
136,184
123,780
102,309
102,309

5
19

121,265
91,826

140,379
111,614

1
1
1
1
1
1
1
1
1
1
127.6

1
1
1
0
1
1
1
1
1
1
132.6

119,740
156,826
119,740
149,350
119,740
119,740
119,740
142,261
127,871
149,350

149,785
196,178
149,785
186,825
149,785
149,785
149,785
177,957
159,957
186,825

FTE's
25-26
0.66
2.64

FTE's
27-28
0.4
0.8

Low
$22/hr
$22/hr

High
-

5

6

B-4

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