PORT ANGELES — From spending cuts to new taxes, everything was on the table Tuesday during the City Council’s first budget work session of the year.
City staff told the council they will take a close look at waste when preparing the 2012 budget, including a program-by-program review of what is providing results for Port Angeles residents.
But they also acknowledged that the city doesn’t have enough money to cover all of the projects on its to-do list and told council members some new taxes may be necessary.
“We want to put everything on the board here,” said City Manager Kent Myers, including the “dirty T word.”
New tax sources?
New sources of taxes discussed at the two-hour-long meeting included the formation of a transportation benefit district to fund street improvements, a bond to cover the cost of renovating Civic Field and a $2-per-room lodging tax increase to pay for tourism-related projects, including the city’s waterfront redevelopment plan.
A general sales tax increase also was broached but was shot down by a few council members, including Brooke Nelson, who noted that it may hinder the city’s efforts to encourage people to shop locally.
The council made no decisions at the meeting, which it mostly spent listening to staff presentations on the city’s budget needs.
City Finance Director Yvonne Ziomkowski told the council that the city’s fiscal outlook appears more positive this year, noting that sales tax revenue is up 8 percent compared with the first five months of 2010.
“I’m quite pleased,” she said.
“At this moment, with everything I know today, I am optimistic we will finish the year better than the budget.”
Such an increase, which follows several years of declining revenue, isn’t enough to avoid talk about new taxes, Ziomkowski said after the meeting.
But, she stressed, any new taxes would be tied directly to a specific project or program.
They also would have to be approved by voters.
New this year, the city also is having council members and senior staff score programs and services based on their costs and what they accomplish.
Ziomkowski said that’s a step toward making city expenses more accountable, including identifying programs that aren’t giving the city enough of a return on its investment.
“We have to be creative,” she told the council.
“We have to be innovative, and we have to look outside our comfort level.”
The council will approve the 2012 budget in December.
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Reporter Tom Callis can be reached at 360-417-3532 or at tom.callis@peninsuladailynews.com.
