PORT TOWNSEND — Voters were promised that approval of a 0.3 percent sales tax increase to support Jefferson Transit would protect existing service routes with no layoffs — and the $3.6 million budget approved last week keeps that promise.
“We said that if the measure passed, there would be no service cuts, and we are going to be able to stick to that,” said Jefferson County Commissioner David Sullivan, a member of the Jefferson Transit Board.
The board approved the budget for 2012 on Tuesday.
Revenue from the sales tax increase that voters approved in February, which added 3 cents to each $10 purchase, will not begin to come in until Sept. 30.
Any shortfall up to the end of October is covered by a $249,999 line of credit.
That additional sales tax revenue is estimated at about $1 million per year but could end up higher or lower, Sullivan said.
With that projection, the system estimates it will be able to begin building its reserves in October.
“If we get more tax revenue than projected, then we will be able to build up our reserves more quickly,” Sullivan said. “If we get less, it will take longer.”
In either case, the system now “has a cash-flow problem,” Sullivan said, which results from the decision not to lay off personnel.
“If we had laid off people last year, we wouldn’t have a cash-flow problem now, but we decided to go for the sales tax increase instead,” he said.
“If the measure hadn’t passed, we would already have service and personnel cuts, but since we have to wait until October for the tax revenue, we will need to use our line of credit,” Sullivan said.
The Transit sales tax measure increased the county sales tax to 9 percent, making Jefferson County’s sales tax the highest on the North Olympic Peninsula. The sales tax rate in the city of Sequim is 8.6 percent. In the rest of Clallam County, it is 8.4 percent.
Permanent manager
Transit general manager Peggy Hanson, who had worked through the initiative process, resigned in March and was replaced by Port Angeles Mayor Dan Di Gulio on an interim basis.
Di Guilio has said he would stay until the end of 2011, but Sullivan said the search for a permanent general manager will begin “immediately,” with ads posted in the next few weeks.
Hanson was paid about $85,000 a year.
Sullivan said the transit system needs to operate within the current budget conditions.
“We need to make this work,” he said.
“We can’t go back to the voters for more money.”
________
Jefferson County Reporter Charlie Bermant can be reached at 360-385-2335 or at charlie.bermant@peninsuladailynews.com.
