PORT TOWNSEND – The possible scrapping this week of the car ferries that have served Port Townsend for decades appears to have immediate implications on the Port Townsend city budget.

On the day that influential state legislators and the transportation secretary, meeting in Seattle, urged a halt to repairing the Steel Electric-class ferries, the Port Townsend City Council deliberated on the city’s 2008 budget, which was already cash-strapped before the last of the car ferries was pulled from service Nov. 20.

City Councilwoman Laurie Medlicott called the loss of car ferries “a dreadful, almost catastrophic economic situation” on the budget, including loss of sales tax revenues from downtown retailers dependent on tourists.

“We are going to have to come up with a fairly aggressive program to attract tourism back into the community,” City Manager David Timmons said.

“I hope this moves expeditiously to restore [ferry] service,” said Mayor Mark Welch.

“I think it’s imperative for the entire North Olympic Peninsula, not just Port Townsend and Whidbey Island.

“There is no quick and easy solution to this, obviously.”

Timmons will present his final budget plan, which might call for three city layoffs, for the council to pass next Monday.

Four days earlier, Gov. Chris Gregoire could decide to mothball the Steel Electrics, leaving Port Townsend without hope for car ferry service for at least the term of the 2008 city budget.