Port Townsend City Council headed toward putting Mountain View commons bond on February ballot

PORT TOWNSEND — City Council members plan to ask voters in February to approve a $3.6 million bond measure to fund repairs at Mountain View Commons.

The council on Monday unanimously approved on a first reading an ordinance to place the measure on the February special election ballot.

A second reading, and consideration of final approval, is likely on Oct. 20.

If approved in a planned February election, about half of the bond would be paid back over 15 years through a combination of utility savings, grants and revenue from the Proposition 1 sales tax increase voters approved in 2010.

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The rest, $1.8 million, would be through a new property tax levy of no more than 13 cents per $1,000 assessed valuation for the 15-year term.

The council had earlier considered asking for $4.3 million, with the balance to be spent on other projects, including the library annex and other city facilities.

On Monday, City Manager David Timmons recommended that the additional funding not be included on the February ballot, noting that the Port Townsend School District will ask voters to renew its current bond on the same ballot.

The property tax levy would begin in 2017. Timmons estimated the proposed increase at $30.70 for a house valued at $250,000.

He added that the levy amount could drop since home values have started to climb within the city.

The bond measure would require a 60 percent majority and include a number equal or greater to 40 percent of those voting in the last general election,

Timmons also described to the council a potential new partnership with the Jefferson County YMCA that would help fund further repairs and renovations to the site, which the city leases from the Port Townsend School District.

Under the plan, the city and the YMCA would divide the campus, with the city starting work immediately on “classroom side.”

Approximately $500,000 in city funding would be set aside for the YMCA side.

The Y has tentative plans to spend between $11 million and $13 million on repairs to the city pool and gymnasium, as well as the construction of new facilities.

Timmons said the city would withhold the $500,000 until the YMCA’s capabilities for completing the repairs of the existing buildings is clear.

If the nonprofit raises the needed funding, the city will pitch in the $500,000 to help in the effort.

If the Y fails to make sufficient progress, the city would have enough funding to make the necessary repairs to the existing buildings on the YMCA side of the campus.

Timmons told the council he is “excited about this partnership. It really improves the city’s financial position.”

Timmons said that energy savings, operational savings created by the repair and revenue from the 2010 sales tax increase should provide up to $389,000 annually that could applied to the debt.

The rest would be paid by the new public indebtedness.

“Half of the debt will be about $150,000, so that leaves an ample margin of error,” Timmons said.

He indicated the other funds would likely be used to shore up the city’s operational budget.

“The numbers work,” he said.

Timmons also told the council he is increasingly optimistic about funding the remaining city needs, including the library annex work, councilmatically.

He said the amount of funding available for those purposes is likely to rise significantly by the end of 2015 to perhaps as much as $3.2 million.

“The key decision is to defer the discussion on the rest until after the election,” he said.

City Councilman Robert Gray expressed concerns with the partnership with the YMCA, saying a number of steps must be taken before a formal agreement is reached.

That would include surveying those in the neighborhood of the facility for their feedback.

He also noted that it’s possible the city could end up funding a facility that would not be used by the city’s poorer citizens because of membership dues and other costs.

Timmons assured Gray that “What we’re doing now doesn’t affect that.”

He said the bond funding would be kept in city coffers until the details have been worked out.

“Those would be separate follow-up actions.”

Rick Sepler, Port Townsend community services director, echoed those comments, saying the council hasn’t made any decisions on the partnership with the YMCA, “but the general feeling is that it’s a good organization.”

The most important point, Sepler said, is that proposed measures would make the existing buildings “ durable, functional and it will allow us to maintain them.”

He said the city’s buildings on the campus now lack fire alarms, heating controls and access for those with disabilities.

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Reporter Mark St.J. Couhig can be reached at 360-452-2345, ext. 5074, or at mcouhig@peninsuladailynews.com.

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