Why Sequim’s sales tax revenues are falling short

SEQUIM — You’d think the streets would be paved with gold. Not potholed.

By North Olympic Peninsula standards, Sequim has become big-box rich, with a new Wal-Mart in late 2004, The Home Depot in 2005, Costco and Petco in 2006 and Office Depot, Sleep Country Plus, Popeye’s Chicken and a slew of others opening in 2007.

Sales-tax revenues swelled apace, as people came, saw and shopped.

In 2005, Sequim reaped $2.138 million from taxable sales. In 2007, it was $2.395 million.

Contrast that with Port Townsend, whose population is 9,069 to Sequim’s 5,951. The Jefferson County city collected $1.65 million in sales-tax revenue last year.

The Sequim City Council is asking voters to approve a sales-tax increase of 0.2 percent in the Nov. 4 general election.

The hike would bring Clallam County’s 8.4 percent sales tax to 8.6 percent inside Sequim only. A $10 restaurant meal here would have 86 cents tacked on instead of 84 cents.

The increase, Mayor Laura Dubois says, could pour some $600,000 in new revenue straight onto Sequim streets.

If voters pass the ballot measure, the money will be earmarked for street improvements: new or repaired sidewalks, fixed potholes.

Dubois adds that the city needs the tax increase because it has several long-overdue street projects in older neighborhoods.

Fir Street, which fronts Helen Haller Elementary School and the Sequim Boys & Girls Club, has a sidewalk on only one side, for example.

At the same time, sales-tax flow has slowed in 2008, along with the nation’s economy. Sequim Finance Director Karen Goschen projects a nearly $400,000 drop from last year’s revenue.

Dubois expects the 2009 budget process to be a painful one, with another drop: $300,000 less in building-permit and utility-hookup revenues this year.

But why didn’t the city fix streets and lay sidewalks during the big-box boom years of 2006 and ’07?

“Good question,” Dubois said.

Then she looked to something this city of 5,951 did pour money into: the Police Department led by chief Robert Spinks since 2005.

The police budget, over the past three years, has almost paralleled the sales-tax revenue figures.

“They’re about equal,” Dubois said, holding up both palms as if to weigh the two amounts.

More in News

Two dead after tree falls in Olympic National Forest

Two women died after a tree fell in Olympic National… Continue reading

Sue Long, left, Vicki Bennett and Frank Handler, all from Port Townsend, volunteer at the Martin Luther King Day of Service beach restoration on Monday at Fort Worden State Park. The activity took place on Knapp Circle near the Point Wilson Lighthouse. Sixty-four volunteers participated in the removal of non-native beach grasses. (Steve Mullensky/for Peninsula Daily News)
Work party

Sue Long, left, Vicki Bennett and Frank Handler, all from Port Townsend,… Continue reading

Portion of bridge to be replaced

Tribe: Wooden truss at railroad park deteriorating

Kingsya Omega, left, and Ben Wilson settle into a hand-holding exercise. (Aliko Weste)
Process undermines ‘Black brute’ narrative

Port Townsend company’s second film shot in Hawaii

Jefferson PUD to replace water main in Coyle

Jefferson PUD commissioners awarded a $1.3 million construction contract… Continue reading

Scott Mauk.
Chimacum superintendent receives national award

Chimacum School District Superintendent Scott Mauk has received the National… Continue reading

Hood Canal Coordinating Council meeting canceled

The annual meeting of the Hood Canal Coordinating Council, scheduled… Continue reading

Bruce Murray, left, and Ralph Parsons hang a cloth exhibition in the rotunda of the old Clallam County Courthouse on Friday in Port Angeles. The North Olympic History Center exhibit tells the story of the post office past and present across Clallam County. The display will be open until early February, when it will be relocated to the Sequim City Hall followed by stops on the West End. The project was made possible due to a grant from the Clallam County Heritage Advisory Board. (Dave Logan/for Peninsula Daily News)
Post office past and present

Bruce Murray, left, and Ralph Parsons hang a cloth exhibition in the… Continue reading

This agave grew from the size of a baseball in the 1990s to the height of Isobel Johnston’s roof in 2020. She saw it bloom in 2023. Following her death last year, Clallam County Fire District 3 commissioners, who purchased the property on Fifth Avenue in 2015, agreed to sell it to support the building of a new Carlsborg fire station. (Matthew Nash/Olympic Peninsula News Group file)
Fire district to sell property known for its Sequim agave plant

Sale proceeds may support new Carlsborg station project

As part of Olympic Theatre Arts’ energy renovation upgrade project, new lighting has been installed, including on the Elaine and Robert Caldwell Main Stage that allows for new and improved effects. (Olympic Theatre Arts)
Olympic Theatre Arts remodels its building

New roof, LED lights, HVAC throughout

Weekly flight operations scheduled

Field carrier landing practice operations will be conducted for aircraft… Continue reading