PORT TOWNSEND — The Jefferson Transit board will consider asking county voters to approve a sales tax increase.
Hearing about the bus authority’s dire financial straits from transit Finance Director Van Church and interim transit Manager Mike Pollack on Tuesday, board Chairwoman Catharine Robinson said the board would meet May 16 to consider taking action to put such a measure on the ballot.
“We run out of money in 2012,” Church told the board.
“Our cash position reaches zero. Basically we’re in a serious cash-flow situation.”
He said about $200,000 is needed to make transit “cash-flow solvent.”
It would be the first time Jefferson Transit, which provides bus service throughout the county, 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, Transit’s share of sales tax cannot exceed a total of nine-tenths of a cent.
“This is something that is going on around the country,” Pollack said of transit’s inability to keep revenues up with expenses.
If the board acts in May to call an election, it has two election dates to chose from, depending on how soon the board approves a resolution, either the Aug. 17 primary or Nov. 2 general election, said Karen Cartmel, Jefferson County deputy auditor in charge of elections.
Options before board
Pollack and Church presented three possible options for a sales tax increase:
• A one-tenth of a cent increase in sales tax, or 1 cent on $10 spent, to generate $378,000 a year.
• A two-tenths of a cent increase in sales tax, or 2 cents on $10 spent, to generate $756,000 a year.
• A three-tenths of a cent increase in sales tax, or 3 cents on $10 spend, to generate $1.134 million a year.
If the bus authority remains at the same sales tax revenue level, severe service cuts are likely, including no Sunday service, significant cuts in routes Monday-Saturday and deferring planned transit improvements, Pollack reported.
If a one-tenth of a cent increase is proposed and approved, Transit “hugs the zero line” after 2012, Pollack said, with the option of Sunday service being eliminated then and significant Monday-Saturday service cuts.
With a two-tenths of a cent increase in sales tax, existing services could remain and planned capital improvements could be made, he said.
A three-tenths of a cent increase would make additional service possible, such as a route to the Kingston passenger or car ferries, van pools and additional service to the Tri-Area, where ridership is greatest.
Transit also would be able to maintain matches for state and federal grant dollars, officials said.
“This is one of the only options for transit to raise revenues itself,” said county Commissioner David Sullivan, a member of the Transit board.
Robinson said it was not a great time to be asking voters for a sales tax increase given the economy.
Pollack said bus fares could be quintupled and they would not raise the needed revenue, “but it would kill ridership.”
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Port Townsend-Jefferson County Editor Jeff Chew can be reached at 360-385-2335 or at jeff.chew@peninsuladailynews.com.
