Port Townsend leaders summarize past year in address

Published 3:30 pm Thursday, March 5, 2026

PORT TOWNSEND — City leaders offered a high-level reflection on the past year and a view of what’s coming during the second annual Port Townsend State of the City address.

The program, which included addresses from City Manager John Mauro and Mayor Amy Howard, largely centered around last year’s successes, this year’s vision and challenges facing Port Townsend.

The event took place Wednesday at the Point Hudson Pavilion and was broadcast via KPTZ 91.9 FM Radio Port Townsend and on the Zoom platform.

Howard expressed pride in the city’s work and staff.

“I am actually really proud of the work the city is doing,” Howard said. “I am really pleased with the city staff we have. We have folks who have been hired from other cities around Washington state. When I go into those communities, they literally ask me if they can have (Public Works Director) Steve King back. No, they can’t have Steve King back.”

Ensuring the city continues to be a good place for those people to work is a priority, Howard continued.

Mauro narrowed a summary of work completed last year down to 10 things.

Those are the completion of the Comprehensive Plan, five miles of chip sealing, the completion of the Water Street sewer replacement project, passing a forward-thinking budget, clearing the Evans Vista homeless encampment, launching the Community Services Department, improving communications channels, receiving the first state Recreation and Conservation Office (RCO) parks grant in 20 years, finishing the Port Townsend Police Department’s first strategic plan, and taking on management of the Port Townsend Creative District from Port Townsend Main Street.

Mauro outlined an annual city workplan, which in recent years has formed around five pillars: Investing in its staff, volunteers and boards, engaging with the community, innovating systems, structures and processes, envisioning the future and delivering on the basics.

He said those pillars guide the city’s approach to addressing long-term challenges such as housing affordability and economic development.

To view the city’s 2026 strategic workplan, completed last summer, go to tinyurl.com/mr3rnjfd.

Some of this year’s planned work includes continued chip sealing, work on a playground at the golf park with the RCO funding, completing a golf park master plan, updating the capital facilities plan and updating the city’s water rate model.

The city uses a volume-based usage charge. That means the Port Townsend Paper Corporation, which uses about 90 percent of the water, also pays 90 percent into the replacement fund, which is currently about $14 million, Mauro said.

“That’s $14 million we didn’t have five years ago,” he added.

Also this year, a community survey will poll residents on how the city is doing across a range of categories.

Work will include implementation of the newly passed comprehensive plan, Mauro said.

Mauro noted that a recent petition for review of the plan’s housing element will not affect the work unless the state Growth Management Hearing Board grants the appeal.

Evans Vista is planned to progress both in seeking requests for expression of interest from developers and the construction of a sewer lift station.

“That’s about $6 million worth of investment from county, state and federal agencies,” Mauro said.

Focus on financial sustainability will continue, and staff will devote themselves to next year’s budget in a few months.

Police accreditation will likely come up in May, Mauro said.

Mauro also noted the success of the returned Soundcheck Art & Music Festival, which took place last weekend.

“That was a resounding success in how we support our local artists and our artist community,” Mauro said.

After the presentation, time was set aside for community conversations. Planning commissioner Stephen Mader asked how the city’s financial status compares to other cities.

“I haven’t gone into direct comparisons,” Mauro said. “Each city is funded differently and structured differently. For instance, Sequim (has) twice as much sales tax, half as much property tax.”

While the city is in a strong financial position, it is not perennially stable, Mauro said.

Mauro did note that conversations with other city leaders have reflected that many cities are struggling to cover mandated services.

While it’s important to solve problems reactively, as the Transportation Benefit District has started to do for Port Townsend’s failing roads system, the city also is thinking ahead, Mauro said.

“There are things that we can do over the long term that fundamentally change the playing field,” he said. “Sustained economic development, real living-wage jobs in this community and affordable housing are fundamental.”

The city has been putting away more than $1 million a year into rainy-day and equipment reserve funds. That is not to say it’s smooth sailing in Port Townsend, Mauro said.

Thinking about the future with laser focus means practicing restraint in the short term, he added.

Port Townsend, like all of the 281 cities in the state, faces an existential challenge.

“Costs are outpacing revenue,” Mauro said.

The state Legislature is discussing new taxes and solutions to funding issues, but there is a limit to the taxes you can place on a population before they are priced out, he continued.

The city also maintains a running inventory of unfunded work, Howard said.

“Things that we know we cannot do at this time, but we know we need to keep track of about how much it will cost in the future,” Howard said.

While work cannot be put into a balanced budget without a planned source of funding, the city maintains the importance of keeping track of necessary work outside of the budget, she said.

Mauro noted that the city has won awards for financial sustainability and that he gave a guest lecture at the University of Washington’s Evans School of Public Policy and Governance around encouraging new leadership to think through longer financial horizons.

“It’s a passion project for me,” Mauro said.

To listen to the whole address, visit tinyurl.com/w4sxbxmp.

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Reporter Elijah Sussman can be reached by email at elijah.sussman@peninsuladailynews.com.