City of Poulsbo March E-Newsletter | | |
Mayor's Corner
by Mayor Ed Stern
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We in Poulsbo are very fortunate indeed to live, work and play in our little city by the bay. Almost everyone reading this newsletter will be doing so from the comfort of their homes, a home I expect in many cases you own. The home that provides you shelter, as well as the foundation of your life’s savings. This is not true for most anymore though, at least the younger generations coming up behind us - - our young new families, our workers, and even a lot of single retirees wanting to call Poulsbo as we do, “home”.
Rentals are a bridge to be sure, but in too many cases now, a bridge to nowhere, with median house prices well over a half-million dollars, and the new homes in town just under or over an even million dollars. Imagine that! - - you are probably shaking your head, as I am. Without home ownership, most of our hard-earned incomes just go to getting by, not getting ahead. And now even the cost of rental is creeping to $2000 per month or more, with nothing to show for it for but that month’s shelter.
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We will lose whole swaths of the neighbors who help keep Poulsbo vibrant, engaged and colorful if something isn’t done, and that is exactly what is behind the ‘Mayor’s Blue Ribbon Commission for Public-Private Partnership Solutions for Affordable Housing OWNERSHIP’ I will be announcing at the conclusion in March of our Planning Department’s four-part series presented at City Council. Ongoing since January, on breaking down the components of what is driving up prices in Poulsbo, the valiant effort to try and discern what among those factors we can do something about, or re-arrange such that for those same folks I mentioned above, they have a shot at home ownership here.
One of the opportunities it seems is to shrink down the land around as well as the size of the home, and stringing together these like pearls on a necklace create little mini-communities of up to twelve adjoining cottages, in a ‘cottage court’ fashion with shared courtyard open space?
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At least in a quick simple picture you get an idea of what the ‘Blue Ribbon Commission’ will be exploring, among perhaps other ideas- - is there enough leeway profit-margin wise to interest the private developer/builder to build these if configured carefully, not dependent on tax-payer funded government programs- - which if they exist at all, are for the lowest income - -not the worker or young family. Can the city and its Council come up with formulas alongside the private sector that help create that exact opportunity? A place for new residents and our children alike to get a start on life, build equity, and move on to larger homes as their savings build, making way then for the next generation starting up to get traction themselves, and so on? Stay tuned!
You are invited to follow Mayor Stern on his new Facebook page: https://www.facebook.com/mayoredstern/
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City Council Corner
by Councilmember Michael Fitzpatrick
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Heisann! My heartfelt thanks to my neighbors for entrusting me with the privilege of serving you as a member of our Poulsbo City Council! Public service is deeply important to me and I'm excited about the opportunity to invest in our common life here in northern Kitsap. If I do not yet know you, please reach out! I'd love to connect.
My wife and I moved to Poulsbo with the encouragement of friends who already live in Poulsbo. We sought a smaller community surrounded by trees, water, and mountains. As the son of a Caltrans worker, I really value the importance and centrality of public service. I served in the U.S. military, I now teach at a community college, and I am excited to serve my neighbors on the Poulsbo Council. I believe every resident is entitled to a government they can trust, and that starts with prioritizing integrity and selflessness over partisan commitments.
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To share my political philosophy, I have a movie recommendation. Thirteen Lives is a Ron Howard film that dramatizes the story of the daring rescue of the 12 Thai soccer players and their coach who became trapped deep inside a cave at the advent of monsoon season in Thailand. The rescue was successful and all thirteen survived their ordeal.
I mention this film because I think it provides two profound lessons for all of us as to what politics should be. In the film, the entire community and the world come together to address a crisis everyone agrees is a crisis. There are no factions, no political parties, no "sides" to the issue. A problem emerges, and everyone works together to solve it: local government, provincial government, national government, governments from other countries. Everyone brings their skills to help in the rescue — local residents, family members, local businesses, engineers from Bangkok — understanding that no one can save the kids alone. It takes all of us working together to face our common challenges.
There's another lesson that emerges from the film. The rescue method they eventually undertake is something that, at the outset, was deemed impossible by all the authorities. It could not be done, they believed. As the days wore on and the situation became more perilous, the rescue teams began to realize that they may need to do something they previously thought impossible. I won't spoil it for those who haven't seen the film, but suffice to say that even when they commit to this rescue method, which involved bringing out 4-5 of the kids each day, their expectation was that maybe 1 would survive each attempt.
The actual outcome was that all thirteen survived and made full recoveries. In hindsight the possibility that was deemed impossible turned out to be the best and most practical option. What we need in politics is more imagination and courage to dare to consider what we assume is impossible. Too often we dismiss ambitious goals because we think they're not practical or realistic. I like this movie because it tells the true story of when the impossible was the only practical and realistic option. May we be a community that does not readily assume that what is difficult is impossible.
Thank you again for the opportunity to serve you.
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City Administrator's Vennlig Hilsener
By City Administrator Rob Gelder
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I hope this newsletter finds you well. Again, there is a lot of great content for you to explore. Notably, I would call out the introductory communication from your newest Councilmember, Michael Fitzpatrick. He has hit the ground running and is a great addition to your elected leadership.
In this issue you will find great statistics about the impact of the City's Resource and Recovery Center in 2025. You'll read about the conclusion of the four-part housing affordability workshops. If you haven't seen them, I would encourage you checking out the videos on our website if the policies around housing pique your interest. And of course, our next open house for downtown parking will happen at 6 pm on Monday, March 2nd in Council Chambers.
With so much happening by your Public Works, Parks, Finance team, it's amazing all that the City has going on.
Lastly, we are embarking on making our website better for you to use. If you have a few moments, please complete the survey at this link: Online survey
| | Housing, Health and Human Services Department Update | | |
2025 Annual Report: Encouraging Growth and Impact. We’re excited to share a preview of the 2025 Annual Report for the Recovery Resource Center and Recovery Café — and the early numbers are encouraging!
Last year, the Center served 372 individuals, and more than 60% became members. That means the majority of people who walk through our doors continue to engage with us over time for peer support, counseling, and social services. Sustained engagement like this tells us something powerful is happening at the Center — people are finding connection, stability, and hope.
Our partnership with Poulsbo Municipal Court continues to make a significant difference. In 2025, two peer support specialists provided weekly outreach at the Court. Today, about half of our members (183 individuals) are court-involved and are actively participating at the Center to stay compliant with court requirements while working toward long-term stability.
We also know that housing and employment are critical pieces of recovery. Approximately 20% of our members are experiencing homelessness, and last year we were able to help at least 10 individuals secure housing. In addition, we spent the year building a “Second Chance Employers” program and helped 12 individuals gain employment.
Our Recovery Café celebrated its soft opening in August 2025 and quickly became a welcoming space for connection and growth. In just a few months, 49 individuals became Café members, along with 32 additional visitors who came to find peer support, learning opportunities, and community.
We’re proud of this momentum and grateful to everyone who makes this work possible. Please visit the City’s Housing, Health, and Human Services webpage later this month to read the full 2025 report and learn more about the impact we’re making together.
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Rest Park. The Recovery Center is proud to partner with a local church to expand support for community members in need. Beginning this spring, the Center will launch Rest Park, offering a limited number of individuals living in their vehicles a safe, designated place to park overnight.
For many people, having a safe and stable place to sleep is a critical first step toward improving their lives. When individuals are no longer worried about where they can park without fear or disruption, they are better able to focus on employment, treatment, housing, and other positive next steps. The Rest Park is designed to provide that foundation of safety and consistency.
Participants will be screened through the Recovery Resource Center and must be members in good standing with the Center or the Café, helping ensure a supportive and accountable environment.
We’re excited to add The Rest Park to the growing range of H3 services and believe it will make a meaningful difference in promoting health, stability, and overall well-being throughout our community.
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Lunch with Lawyers. Staff from the Recovery Center and Café met with the Kitsap County Bar Association this month to discuss the City’s new pre‑arrest diversion program. Through this initiative, Poulsbo police may offer individuals charged with non‑violent misdemeanors an alternative to arrest: becoming members of the Recovery Resource Center and participating in our social and clinical services. The goal of the program is to strengthen collaboration between law enforcement, the judicial system, and the Recovery Center so that individuals facing non‑violent charges can access help, build stability, and make healthier choices—reducing the likelihood of future arrests or incarceration.
| | Kitsap Great Give. The Recovery Center is supported, in part, by local tax dollars and state grants. We also rely on donations to run our meal program and supply our kitchen. Inclined to support us as part of Kitsap Community Foundation's Great Give? Please visit the donation page for more details from the QR code. | | | Planning and Economic Development Department Update | | |
Housing Affordability Series Concludes March 4
Our four-part Housing Affordability Series will conclude on Wednesday, March 4. This thoughtful and in-depth effort has provided the City Council with the opportunity to create a narrowed list of programs and incentives for staff to further refine, with Council concurrence. The programs/incentives identified at workshop 2 as their highest priority included land banking, local housing fund, preservation/acquisition, fee deferrals, an Urban Growth Area Swap and Annexation. Collectively, the council has expressed an interest in having these programs targeting the 60% and below Area Median Income (AMI) and workforce housing, or those at 80 to 120% AMI. Area Median Income is the midpoint income for our region and the standard used to determine eligibility for affordable housing programs. As part of the 4th workshop, the Council will confirm AMI targets for some of the programs as well as indicate preferred funding sources.
Housing affordability is one of the most important issues facing our city, the region and the state. This effort has been focused on identifying strategies that are right-sized for Poulsbo — aligned with our staffing capacity, budget realities, and community values. We have all learned a great deal throughout this process. It has been inspiring to see the level of community engagement, along with the energy and enthusiasm of our staff to leverage Poulsbo in creating housing for all.
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Downtown Parking Study Session – March 11
Following the housing series, the Wednesday, March 11 Council meeting will feature downtown parking. The Council will revisit the previous Council decision to implement paid parking in summer 2026 and determine if and when paid parking will go into effect.
In May of last year, after receiving recommendations from the Downtown Parking Committee, community input — including from downtown business owners — and guidance from a professional parking consultant, the Council adopted a resolution to:
- Update signage and implement employee parking in 2025
- Begin enforcement in 2025
- Implement paid parking in summer 2026
In July, the City contracted with a third-party enforcement provider, LAZ Parking. New signage was installed to clearly identify time limits, enforcement began with courtesy notices in November, and the transition from notices to citations began in January 2026.
This program has resulted in meaningful improvements:
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Designated employee parking areas — something that had not previously been available
- Agreements with private property owners to expand parking options
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A total of 249 downtown employee parking spaces
These include new spaces at the Parks & Recreation Center on Front Street, the gravel lot next to the Post Office, and the Gateway parking lot. We are grateful to our partners who have worked collaboratively with the City to make these improvements possible.
The rollout has been an ongoing process of listening, adjusting, and refining, i.e. adaptive management. Beginning in November, the City launched monthly “Second Friday” morning meetings to invite feedback from downtown business owners, property owners, and community members about their experience with the new parking system. These meetings were held each Friday through February. In response to requests for broader accessibility, the March meeting will transition to an evening format on Monday, March 2 at 6:00 p.m.
Based on community feedback, the City has:
- Clearly marked employee spaces with “E” designations
- Established consistent enforcement hours (10:00 a.m. – 6:00 p.m.)
- Improved signage at the King Olaf lot to better identify employee parking
- Added a new Event Parking option allowing all-day parking for $10
Downtown parking conversations have been ongoing in the city for the last 20 plus years. This most recent effort began just three years ago and has resulted in increased parking in our downtown system specific for employees and increased enforcement, with discussion now focused on whether to move toward paid parking. A hybrid paid parking approach has organically evolved through the city’s adaptive management of special events. Last year, Council indicated that they were in support of paid parking in limited areas of our downtown, casually referred to as our ‘front row seats’ of Anderson Parkway and portions of Front and Jensen Streets. We invite you to follow the conversation on March 11.
| | Engineering and Building Department Update | | |
Lincoln Well #2 Rehab Project – The City awarded the construction contract to Schneider Water Services for the Lincoln Well #2 Rehab project on February 11 at City Council. Schneider was the lowest responsive bidder for the project. This project will take Lincoln Well #2 out of service for about 4 weeks so that the contractor can perform rehabilitation on the well including video inspection, cleaning of the well casing and screen, and other various techniques as deemed appropriate upon completion of the video inspection. The Lincoln Well #2 is important for providing water to the east portion of the City and the well will be put back into full operation prior to April 30 to continue providing reliable and high-quality drinking water. There will be no disruption to customers’ service during this time.
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11th Avenue Sewer Installation & Gateway Sewer Replacement Project – These two small sewer improvement projects will be advertised for construction in late February with work to occur later this spring in April and May. The public sewer on the Gateway property is 60+ years old and has caused issues for the school and church in the past. It will be replaced with PVC and the parking lot restored. The other sewer project will extend sewer from Lincoln Road onto 11th Avenue which was platted prior to sewer being available in that area. The existing houses are currently on septic systems and there is very limited ability to replace aging systems on the existing properties. A grind and overlay will be completed following the sewer installation to restore the roadway.
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City of Poulsbo Water System Plan – Last November the Water System Plan was submitted to the Department of Health (DOH) for final review and approval. DOH is waiting to receive one final confirmation but has verbally confirmed that the City Water System Plan is accepted. The Water System Plan was adopted as part of the comprehensive plan approval last June pending DOH approval on the plan.
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VEPO CrossConnex - Backflow Software – One item in the Water System Plan that required action by the City is an update to the Backflow Prevention & Cross Connection Control Program. Backflow devices are put on certain types of water meters including irrigation, commercial, industrial, and other facilities considered a potential health hazard or source of contamination into the public water system. A backflow device prevents water from flowing backward out of a site into the public system. State law requires that property owners have their backflow devices tested annually by a certified backflow tester. Public Works issued an RFP and selected VEPO CrossConnex as a software solution for managing the backflow program. CrossConnex is currently used by neighboring water systems, including Bainbridge Island and Kitsap Public Utility District (KPUD). The software allows for notifications, online test uploads, compliance tracking and reporting, and a portal for certified testers. More information is to follow in the near future for property owners with backflow devices.
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Water Conservation & Irrigation Focus – Another item from the Water System Plan is the water efficiency use goals which are established with a priority focus on using water efficiently. Staff are currently in the process of identifying measures to implement to achieve the water efficiency goals. Two primary goals were identified in the plan:
- Reduce general water consumption by 5% per capita over a 6-year period, and
- Reduce irrigation water by 10% over a 20-year period.
Staff will bring a variety of water conservation measures, tools, and code amendments to City Council for consideration at a council workshop this spring.
| | The City of Poulsbo is currently hiring. Click here to learn more details about open positions! | | Parks and Recreation Department Update | | |
SPRING BREAK CAMPS!
Keep your active child engaged with our fun spring break camps!
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Gymnastics: Mini Camp for ages 4-6 and Beginning or Advanced Camps for ages 6-10. Gymnasts will work on expanding their skills in tumbling, balance beam, bars, vault, rings, and rope while having fun. Mini Camp will also include a craft. Register at CityofPoulsbo.com/Register.
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Skyhawks Multi-Sport Camp: Athletes will learn rules and essential skills for basketball and soccer, along with vital life lessons such as sportsmanship, inclusion, and teamwork. Register at www.Skyhawks.com
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REGISTRATION FOR SPRING AND SUMMER PROGRAMS
The Spring / Summer Activity Guide will be available for viewing on Friday, March 13. It will include a variety of programs for all ages and interests, including many of our summer camps so that you can plan your summer activities now.
SAVE THE DATE! Registration for Spring/Summer programs will begin at 8 am on Friday, March 27.
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SUPPORT YOUR COMMUNITY EVENTS!
Do you love attending the Viking Fest Road Race or the Summer Nights at the Bay Concert Series? Is your company or organization looking for a way to support our beloved community events? We’d love to talk to you about sponsorships! Contact our office at 360-779-9898 or parksrec@cityofpoulsbo.com.
POULSBO COMMUNITY CALENDAR
Did you know Poulsbo has a community calendar that lists local events in one place? You can even subscribe and have events sent right to your email! To view the calendar, click Community Calendar.
| | Finance Department Update | | |
2026 Newly Adopted B&O Tax Code
The Poulsbo Municipal Code was updated January 1, 2026 for 2026 and future years business and occupation (B&O) taxes.
The new annual filing due date is April 15 of each year.
From 2026 forward, there is no longer a two-tier system of deductions. There is a single deduction for all classifications (Retail, Manufacturing, Wholesale and Services and Other).
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2026 Quarterly Filers - All classifications (Retail, Wholesale, Manufacturing and Services & Other) will be able to take a single $31,250 deduction from their gross income. There will no longer be two different deductions.
2026 Annual Filers - All classifications (Retail, Wholesale, Manufacturing and Services & Other) will be able to take a single $125,000 deduction from their gross income. There will no longer be two different deductions.
Updated 2026 forms can be found on our website and with our Cashier on the third floor of City Hall. FileLocal will have updated forms available April 1.
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QUICK FACTS
- Semi-annual 2024 and 2025 businesses will be exempt from paying the City’s B&O tax if annual gross revenue is less than $20,000. In 2026, businesses will be exempt from paying B&O tax if annual gross income is less than $125,000. However, a zero return tax form is required to be submitted annually (due April 15).
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Businesses who gross over $125,000 annually will submit B&O tax quarterly, businesses who gross under $125,000 annually will submit B&O tax annually (due April 15).
- Non-profit organizations who are exempt from paying the City’s B&O tax are required to file an annual zero return by April 15.
- Non-profit organizations who remit tax back to the state are required to file a return.
- The tax rate for all classifications of business is .2%, (.002)
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MAKING A PAYMENT
Per Revised Code of Washington 82.32.080 and Poulsbo Municipal Code 3.34.130, payment must accompany the tax return to be deemed received.
FileLocal: The preferred method for filing and paying Poulsbo B&O tax. https://www.filelocal-wa.gov/ FileLocal offers a Taxpayer Quick Start Guide which provides step by step instructions to set-up a business account and link it to Poulsbo to pay taxes. A UBI number (9-digit UBI, business ID and business location ID is needed and can be found on the Department of Revenue website), which is also the business Poulsbo account number. Online payments will be charged a convenience fee of $4.00, plus a $1.00 ACH debit service fee -or- 2.49% credit card fee for each form. No fees will be charged for a zero return.
Drop Box: Drop off completed form and payment either in the drive-up drop box located on 3rd Avenue or the walk-up drop box located at the top of the stairs just outside of the main entrance to City Hall located off Moe Street. These boxes are checked daily for payments.
In Person: Poulsbo City Hall, 3rd Floor, with Cashier during City Hall Hours: Monday – Friday (8:00am – 4:30pm), excluding holidays. Please note the front counter is closed each weekday from 12:15pm – 1:15pm for lunch.
Mail: Completed form and payment may be mailed to: City of Poulsbo – Cashier, 200 NE Moe St, Poulsbo, WA 98370. Ensure it is postmarked no later than the due date to avoid penalties.
Online: www.cityofpoulsbo.com, scroll down and click PAY A CIT5Y BILL, scroll down and click OTHER CITY SERVICES PAYMENT and the payment portal will open. In the Pay a bill dropdown choose B and O Tax, click Next →, under Account Number or Reference, enter the UBI number and fill in the balance of information to complete the payment. Email the completed B&O tax form to: tax@cityofpoulsbo.com.
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