Split Sequim City Council puts sales tax increase on ballot
By Diane Urbani de la Paz, Peninsula Daily News
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The council's newer members — Susan Lorenzen, Erik Erichsen, Ken Hays and Mayor Laura Dubois — favored the ballot measure, while midterm members Bill Huizinga, Paul McHugh and former mayor Walt Schubert cast the "no" votes.
The three naysayers believe this is anything but an opportune time to ask shoppers to pay more for goods inside the city limit.
"People are struggling," amid a recession, Schubert said.
The tax increase, if approved by voters in November, would add 2 cents to every $10 spent in Sequim on most items.
Present sales tax in Clallam County is 8.4 percent.
Prescriptions, gasoline and grocery-store food — except for hot food — are not subject to sales tax. Restaurant fare is taxed.
A projection based on 2007 sales figures indicates that the added sales tax could put an extra $600,000 into the city's purse in 2009.
That money will be earmarked for transportation projects: sidewalks and street "rehab," as Dubois calls it.
'Socialism at its best'
During the public hearing, real estate broker Mike McAleer rose to blast the whole idea.
"I consider this socialism at its best," he began.
Several of the planned improvements will be in Sequim's older neighborhoods, such as Hammond and Fir streets.
The people who'll pay for those improvements, McAleer said, live in subdivisions such as Emerald Highlands and Sherwood Village.
"They've already paid in their lot price . . . now they get to pay for the deferred maintenance" of the older streets.
"This is not a business-friendly signal," McAleer continued.
As an example, he pointed to Rand Thomas, owner of Thomas Building Supply, saying his merchandise would be more expensive than that of sellers outside Sequim.
'Democracy at finest'
Hays didn't hold back in his response.
"I never heard something so ridiculous said in public in my life," he said.
Putting the sales-tax increase on the ballot "is democracy at its finest," since it will give voters their say.
McHugh, who often clashes with Hays on city issues, spoke next.
"Unlike Ken, I'm not going to lecture anybody who's spoken to us. I appreciate everybody's comments," he said.
McHugh's main concern with the ballot measure, however, is that Sequim's voters aren't "properly educated" about the good the added tax revenue will do.
"I think it would be smarter to wait at least another year," he said. "Let's take some time to develop the kind of grass-roots support to make this thing a reality."
City Attorney Craig Ritchie has reminded the council that it may issue one informational brochure about the tax measure and attendant street improvements.
But from now on, it cannot use public resources, such as city staff time and equipment, to campaign for its passage.
Among the other speakers during Monday's public hearing was George Scott, who hailed the proposed increase in the Olympic Medical Center levy as "a noble cause."
But a sales-tax hike, which would affect "other people," such as those who come in from outside Sequim to shop, is to him not a noble idea.
The OMC levy measure, on the ballot in the all-mail primary election ending Aug. 19, would raise Clallam County property taxes for the hospital district from the current 11 cents per $1,000 assessed valuation to 44 cents per $1,000.
Pat Clark, a frequent speaker at Sequim council meetings, came to the podium next.
Opportunity for choice
"My sentiment always goes toward giving our citizens an opportunity to make a choice," he said.
"I absolutely believe the council would be remiss in missing this opportunity" to reap some revenue for better streets.
"The citizens may say 'No, thank you,'" or they might say "yes, please," Clark added. "Let them argue it out," in the November election.
"Somebody will win. That's how it works."
Yet even if Sequim wins the increase, the money may not rescue the city from difficult straits come 2009.
Karen Goschen, the city's finance director, told the council that sales tax is down about $400,000 from last year.
That drop will be particularly painful, she added, since Sequim is facing a $300,000 rise in personnel expenses due to cost-of-living adjustments in pay.
"It will be a struggle to maintain the staff we have," Goschen warned.
"We will have some difficult choices to make."
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Sequim-Dungeness Valley Editor Diane Urbani de la Paz can be reached at 360-681-2391 or diane.urbani@peninsuladailynews.com.
Last modified: August 12. 2008 9:00PM