Port Townsend Council Balances 2027 Budget, Selects Related Northwest for Evans Vista Development

PORT TOWNSEND, WA — The City Council met for nearly four hours on Monday, Nov. 2, closing out a lengthy 2027 budget hearing with a razor-thin surplus and selecting Related Northwest as the development partner for the long-awaited Evans Vista affordable housing project. 

Budget: A $5,800 margin and a new reserve floor

Finance Director Jodi Adams presented the updated preliminary budget, which closes with a General Fund surplus of just $5,800. The balanced plan follows months of departmental reductions, unfunded one-time requests and a reallocation of community services reserves. The 2027 budget did not include the roughly $1 million replacement funding for the Mountain View facility, though the city clarified that this does not mean the pool is closing. 

A significant structural change accompanies the budget: the council adopted updated financial management policies raising the General Fund reserve target to 60 days of operating expenses plus a $500,000 emergency reserve. The new floor sits at approximately $2.87 million, and the 2027 budget ends about $12,000 above that target. 

Public comment remained focused on utility funds when resident Judy Krebs asked for clearer ties between rate models and specific capital projects. Interim City Manager Steve King explained that unspent capital funds accumulate in operating reserves until projects are ready, citing the 1-million-gallon reservoir that has appeared in rate models since 2021, but was delayed due to staffing, as an example. 

Resident Jude Rubin urged the council to keep the Mountain View Pool operational until a replacement is built, while Mary McCurdy raised concerns about Comprehensive Plan remand costs that staff explained remain unchanged since the Oct. 19 presentation. 

Council members acknowledged the budget’s tightness. Council Member David Faber warned that unfunded facility replacement for Mountain View signals the pool’s vulnerability to a major capital failure, calling it a “crying shame” at the previous meeting. Council Member Monica MickHager suggested the community may eventually need a dedicated levy for parks, similar to the city library’s successful model.

Evans Vista: Related Northwest selected

Following a detailed presentation from Housing Grants Coordinator Renata Munfrada, Planning and Community Development Director Emma Bolin, Thomas Architecture Studios Principal Amos Callender and consultant James Kim of EcoNorthwest, the council voted to direct the city manager and attorney to negotiate agreements with Related Northwest.

Both finalists — Related Northwest and Edlen & Co. — exceeded the city’s minimum affordability requirements. Related Northwest proposed 295 to 388 homes, with at least 70 percent restricted for 50 years to home buyers at or below 80 percent area median income, and leading with tax-credit-financed affordable housing. 

Edlen proposed 310 homes, including 20 affordable ownership cottages, but relied on a less conventional Opportunity Zone equity strategy for its first phase.

The evaluation committee scored Related Northwest slightly higher, 531.5 to 516.5 out of 600, citing stronger financial feasibility and team qualifications. EcoNorthwest characterized Related’s assumptions as more conservative, while flagging Edlen’s operating and borrowing cost estimates as optimistic.

Council deliberation was brief and decisive. Faber cited Related’s greater unit count, deeper affordability and “tried and true” financing as decisive factors. Council Member Fred Obee emphasized Related’s front-loaded affordability in Phase 1. Council Member Neil Nelson noted Related’s earlier rollout timeline. MickHager, Mayor Amy Howard and Deputy Mayor Owen Rowe all leaned toward Related, though MickHager stressed that negotiations must prioritize long-term affordability beyond 50 years and rigorous property management oversight — a concern first echoed by public commenter Eric Jones, Executive Director of the Housing Solutions Network.

The motion passed unanimously. Negotiations will return to council to approve final agreements.

Other actions

The council also approved a high-deductible health plan option for non-represented employees paired with a city-funded health savings account contribution; accepted the Facilities Repair and Replacement study as a point-in-time document; and authorized Mayor Howard to sign a letter to the state Department of Ecology regarding the Port Townsend Paper mill. 

The meeting concluded with a brief note that Mayor Howard and Interim City Manager King will seek discussions with the Port Townsend School District regarding the future of Mountain View Pool, whose current agreement runs through 2032.

A second public hearing on the final budget will take place Nov. 16, with a second reading and adoption on Dec. 7.