PORT TOWNSEND — The Jefferson Transit board last week scheduled a special meeting in August after a divided board tabled a decision to call for a Nov. 3 election to ask transit district voters to increase the transit sales tax by 50 percent.
A meeting to further discuss increasing the sales tax by three-tenths of a cent, or 3 cents on $10 spent, to generate $1.134 million a year in the Jefferson County Transit service area was set for 1:30 p.m. Tuesday, Aug. 3, at the Mountain View Commons meeting room, 1925 Blaine St., Port Townsend.
Such an increase would bring financial relief to the revenue-anemic public bus system where Transit General Manager Peggy Hanson, who took over two months ago, has ordered 10-day unpaid employee furloughs annually and pay freezes for as many as 10 nonunion employees of the staff of about 30, including herself.
Pay freezes for nonunion employees were first implemented in 2008, under former General Manager Dave Turissini, and Hanson has extended that through this year, saying sales tax revenue income is down an estimated 11 percent this year, having declined since the national economic recession began to take hold locally in 2007.
First since 2000
It is the first time transit asked for a sales tax increase since September 2000, when voters authorized raising the sales tax by three-tenths of a cent to six-tenths of a cent.
The original sales tax of three-tenths of a cent was approved by county voters in November 1980.
By state law, the agency cannot exceed a total of nine-tenths of a cent on sales tax.
Hanson last Tuesday told the Transit board that her administrative staff now performs its own janitorial cleanup.
It also is planning an office painting party to spruce up the aging Transit offices on Upper Sims Way that about five years ago were proposed to be relocated on transit-owned acreage near Jefferson County International Airport.
Tabled calling the election
The board last Tuesday voted 4-1 to table calling the election, with Port Townsend Deputy Mayor George Randels joining the three county commissioners who sit on the five-member board in opposing the resolution to call the election.
That left Catharine Robinson, Transit board chairwoman and former Port Townsend mayor who still serves on the City Council, the lone board supporter for the sales tax election.
The county has until Aug. 10 to place the measure on the November ballot with the county Auditor’s Office.
Board members such as county Commissioner David Sullivan said they were concerned that the proposed sales tax increase would compete with other state tax measures, working against voter approval.
Robinson on Friday stood fast in her position saying, “I’m still in favor of putting it on the ballot, but I’m one vote of five and I can’t make it happen.”
She added that, with three county commissioners sitting on the transit board, “obviously they’ve got the vote.”
Cuts in service?
“Transit does have to do something, sooner rather than later,” she said. If not, she said, “It would lead to cuts in service.”
Robinson said hourly cuts were more likely than Transit layoffs.
Hanson again voiced her support for the sales tax increase on Tuesday, telling the transit board her 60-day assessment showed things were bleak.
“I want you to know that it is a difficult time throughout the nation to ask our citizens for a sales tax increase,” Hanson told the board.
Hanson said such an increase would restore some type of a frequent level of service at a time when ridership, especially on the weekends, is on the rise.
The sales tax increase would protect existing service and restore late-night service to the community.
“It is the customer that matters most to me,” Hanson said in her recommendation to the board.
“This a viable community that has welcomed transit,” she said, adding that she rides the bus to and from work and often talks to other regular riders, hearing what obstacles they see as a result of service adjustments.
Public hearing
The Tuesday public hearing on the proposal drew five responses.
“I am not in favor of this resolution for a number of reasons,” said county observer and resident Tom Thiersch.
Thiersch called sales tax “the most regressive kind of tax.”
He feared a sale tax increase might lead Transit to other future increases, such as for fares.
He asked that discussion of other alternatives be considered, such as buying smaller buses and fares based on zones and gas mileage.
Port Townsend resident Jim Todd said he was “mostly in favor of resolution,” and generally backed public transit.
County Commissioner Phil Johnson said he agreed the state has a regressive tax and that he considered it one of the worse.
“At this point I can’t support this,” he said. “The county is also facing a lot of obstacles and shortfalls of money so I can’t support this resolution as it stands and I am very sorry to have to do this.”
Sullivan said Transit in general has limited choices that the state Legislature has provided to finance county government, “so we are left with a regressive tax.”
February election?
Sullivan said he was inclined to call for a special election in December for a February ballot. Otherwise, he said, the agency would have to wait another year to get the measure on the November 2011 ballot.
“I do not envy you guys to have to walk that tightrope,” Randels said, reacting to Sullivan’s concerns.
Randels said he believe “the government’s role is in my view to serve those in greatest need” and he was convinced a November election would pass voter muster.
County Commissioner John Austin said he was a frequent bus rider and that it is a valuable service.
Austin, however, shared Sullivan’s concern that the state may lose other revenue, such as liquor sales funding should voters pass a private takeover of state liquor stores.
“We may also lose other funding,” such as “sin taxes” for bottled water and candy bars, he said.
“I think we need to hold off on this particular resolution because unlike the county we may have other options if we delay it,” Austin said.
“I can’t support voting positively at this time.”
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Port Townsend-Jefferson County Editor Jeff Chew can be reached at 360-385-2335 or at jeff.chew@peninsuladailynews.com.