Sequim council reviews formal rules, reporting and 1.5% cap for municipal funding program

Staff presented a revised municipal funding program and related application, reporting and scheduling rules at the June 12 meeting and asked for council direction on several items including the program cap, application deadlines and whether award decisions should continue to be made by full council.

What staff proposed: Marin Packer, executive assistant and program lead, told council the recommended process would move the municipal funding review earlier in the budget cycle so requests are evaluated before the finance director finalizes the budget book. "We are proposing that rather than in September when finance delivers the budget book to council, that the municipal funding request review happen in June," Marin said. The updated guidelines add standardized, short applications, require an annual report on a city template with expense documentation, and propose three funding terms: one-time awards (for amounts under $10,000), one-year awards paid by invoice during the year, and two-year awards (repeat award for two years, not automatically renewed).

Why staff suggested changes: staff said the changes are designed to make the program clearer, faster to administer and to improve accountability. Marin said staff will no longer accept late applications after the deadline and that they will post a public reminder at the program opening; councilors asked for two or three public reminders spaced through the application window. Staff also proposed requiring all successful applicants to file a short annual report and expense documentation on the city's template.

Council feedback and direction: councilors asked for a modest set of adjustments. Several councilors suggested multiple public reminders rather than individualized outreach; one councilor proposed also issuing a press release and contacting local partners (for example, chamber or community organizations) to amplify notice. Staff said it could change the calendar and recommended moving the deadline to June 30 (staff later agreed to make that change and to return the final language for placement on a future consent agenda). On funding scale, staff proposed a policy cap of 1.5% (or less) of the general fund as a guardrail to protect general-fund resources for core municipal services and infrastructure. Councilors expressed concern both for constrained city resources and for community need; several asked staff to return with the formal language and the updated calendar.

Practical details and reporting: Marin emphasized the application is intentionally short and asks applicants to identify goals and measurable outcomes (with a maximum of three deliverables) and to upload a simple budget template. Staff said the city has historically paid a small cohort of larger applicants; in recent years municipal funding grew and 2025 spending was higher than previous historic levels. To improve transparency staff recommended full-council award decisions (rather than a small subcommittee) and said staff could provide a summarized annual report of award outcomes to the council and post full reports publicly.

Next steps: staff will revise the guidelines and calendar to reflect council feedback (including public-notice timing and a June 30 application deadline for future cycles), prepare the annual-report template, and return with the final language for council action. Marin told council she would present the revised program documents on a future consent agenda for formal adoption and noted staff will continue to meet applicants to help them comply with the new forms and reporting requirements.

Ending: Council did not take a final vote on ordinance or resolution language at the work session. Staff was directed to bring the revised municipal funding guidelines, the deadline change and the template for annual reports back to council for formal adoption.