Community Environment Government

PenMet budget in solid shape, staff tells commissioners

Peninsula Metropolitan Park District was in a healthy financial position at the end of 2025, with more revenues coming in than budgeted and fewer expenses than planned.

PenMet carried over more than a third of its capital fund from one year to the next, according to a monthly and year-to-date financial report that staff presented to the board of commissioners at its January meeting. The carry-over funds are earmarked for specific projects identified for 2023-2025, said Brynn Grimley, Peninsula Metropolitan Park District spokeswoman.

Revenue fluctuates

As of November, the park district carried forward $13.7 million from the previous year in its Capital Fund, according to the public documents. The board approved spending 65 percent of those funds, leaving 36% to be carried over to the next budget year.

The board approved $7 million in funding for the recreation center that opened in June; $416,000 for upgrades and ongoing maintenance to the mini golf course at the same facility;  and $406,000 for the Tacoma DeMolay Sandspit Park project, according to the public documents.

“Typically, revenue fluctuates year-to-year across all funds for various reasons,” Grimley said in an email.  “Our revenue is accounted for on a cash basis, which means that it is shown in the budget only after it is received.”

The excess revenues may be used for nonrecurring emergency capital expenses, Grimley said. But that is up to the elected board.

When applicable, the district applies grant funds for  projects, Grimley said. That cycle runs in two-year increments.

Property taxes provide bulk of revenue

The park district’s 2025 total budget was for $10.1 million, which included $8.6 million from property taxes and $1.8 million from impact fees the county paid. In reality, as of November, the park district earned about $11.6 million in revenues.

Grimley said that 85% of the district’s revenue comes from property taxes.

“We made a commitment to taxpayers that we would find alternative revenue sources beyond taxes to directly support programming, services and recreation opportunities expected by our residents,” Grimley said in an email. “We worked with the county to recoup some of the Real Estate Excise Tax and impact fees it collects within our district.”

The community should expect to see work on the Peninsula Gardens and the DeMolay Sandspit projects, Grimley said. 

Critic questions risk

Craig McLaughlin, a Fox Island resident who has followed the park district’s work closely, said publicly funded organizations need to be fiscally responsible. However, McLaughlin felt the park district is taking a risk with the use of a bond to pay for the new recreation center on 14th Avenue NW.

The 58,000-square-foot recreation center opened last June. It features a synthetic-turf field for soccer, football and lacrosse; three sports courts for basketball, pickleball and volleyball; a walking/running track; and spaces for fitness activities and gatherings.

“They are using our money and they have a duty to use our money wisely with a minimum of risk,”McLaughlin said.

The county and the district finalized an agreement last year that sent an accumulation of those funds to the district coffers totaling  $1.9 million. That influx of funds boosted revenues in 2025, Grimley said.

‘An exceptional year’

Expenses too came in far less than projected, according to the budget document. The board spent $5.6 million through November, when it projected expenses of $6.4 million, according to the documents. 

“We run a conservative budget,” Grimley said. “Sometimes the timing of expenses doesn’t align with our calendar year.”

The park district earned less in fees from its various programs through November. The board reported a budget of $1.3 million in fees and events, but earned $1.1 million, according to the budget document.

“If we have excess money in the general fund, the money transfers to the capital fund,” Grimley said. “Our smart fiscal management shows our commitment to our taxpayers that we continue to provide exceptional levels of service, while being innovative and resourceful. 

“Last year was an exceptional year. We completed our PenMet Parks Recreation Center on budget and because of its opening, our recreational programming has increased significantly.”