PORT TOWNSEND — The distribution of expected revenue from a sales tax increase approved by voters in November for public safety and recreational facilities will change after a certain threshold has been reached under an amendment approved by Jefferson County commissioners upon the request of the city of Port Townsend.
The amendment of the distribution of revenue from the sales tax increase — which will begin to be received July 1 — was taken Monday.
Under the revision, the percentage of sales tax revenue that the city would provide for support of the Port Townsend Recreation Center — which is planned to reopen soon — and Memorial Field will be cut in half once a projected revenue of $212,500 has been reached.
City Manager David Timmons said the impetus for the request came because the original proposal had no accommodation for a windfall — even though he doesn’t expect that windfall to materialize.
“Real estate taxes are coming in a bit higher, while sales tax is down a little,” he said.
“I expect we will probably stay neutral.”
Proposition 1, passed in November, added 0.3 percent sales tax — or 3 cents for every $10 spent — throughout Jefferson County.
The county allocates 60 percent of the revenue realized from the tax increase to projects increasing public safety and gives 40 percent to Port Townsend.
Port Townsend officials originally agreed to devote half of the city’s share of the revenue to maintenance of Memorial Field at the Port Townsend Recreation Center — both county facilities.
The other half was to pay for fire services from East Jefferson Fire-Rescue.
“We are still committed to support Memorial Field and the Rec Center,” Timmons said.
“If we receive funds above what we expect, we can channel it into other city projects.”
Under the amendment approved Monday, the city’s share for the county facilities will drop to one-quarter of the revenue it receives after the $212,500 threshold has been reached.
For example, for every additional $1,000 collected, $500 will go to fire services, $250 to recreation and $250 to the city — for other projects — replacing the original 50/50 fire-recreation split.
The change was made at the request of the city.
The sales tax increase is permanent, as is the 60/40 split between the county and the city, but the city has committed to the recreational facilities support for three years only.
After that time, both government entities hope to find alternative funding sources for the Recreation Center and Memorial Field.
The Recreation Center will open July 1, but the programs to be offered have yet to be determined, said County Administrator Philip Morley.
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Jefferson County Reporter Charlie Bermant can be reached at 360-385-2335 or at charlie.bermant@peninsuladailynews.com.
