PORT TOWNSEND — Election night’s elation over the passage of a sales tax increase was tempered Wednesday as Jefferson County officials discussed cutting $426,943 from the 2011 budget.
Proposition 1 — which raises the county sales tax rate by 0.3 percent to 8.7 percent, adding 3 cents to every $10 spent — won approval with 7,090 votes, or 55.61 percent, in favor to 5,659 votes, or 44.39 percent, opposed in Tuesday’s count.
Auditor Donna Eldridge doesn’t expect Friday’s count of outstanding ballots, which numbered 3,543 on Wednesday, to change the outcome.
Yet, even with the additional $506,000 projected to be realized by the tax increase in 2011 — which won’t be collected until April and won’t begin to be in county hands until June — the county still must make cuts to balance its budget in the face of a $1.1 million deficit.
Proposition-funded
“In putting together the budget, we will put back the programs that were to be funded by Proposition 1,” county Administrator Philip Morley said after the meeting Wednesday.
“But as we knew, even if the measure passed, we would need to make more cuts.”
Wednesday’s meeting of department heads and elected officials, which was not open to the public, focused on the development of a final balanced budget, which is due for presentation to the county commissioners Nov. 17.
Department heads have one week to determine their cuts.
Morley has given each a target amount, ranging from $43 for the Civil Service Commission to $37,823 for the Sheriff’s Office.
The amount not raised by the sales tax increase or covered by budget cuts will be pulled from reserves, Morley said.
Given structural changes made this year, and the realization of a full amount of the sales tax increase in subsequent years, which is projected to be $637,000, such a move won’t be necessary after 2011, Morley predicts.
“In future years, Proposition 1 saves us from having to use reserves because we will get the full year’s revenue,” Morley said.
Saved by tax hike
In the meantime, several positions and programs that would have felt the ax won’t be cut.
Saved by the tax increase, which will take effect April 1, are a sheriff’s deputy and an animal control officer, as well as a deputy prosecutor and a juvenile probation counselor.
Substance abuse programs and community centers were also in jeopardy.
The county is required to allocate one-third of the revenue realized from the tax increase to public safety and to give 40 percent to local municipalities — in this case, Port Townsend.
City officials have agreed to devote half of the $400,000 it would receive next year to fund maintenance of Memorial Field at the Port Townsend Recreation Center with half of the projected $400,000 it will receive.
City meeting today
City Manager David Timmons said he will recommend at an East Jefferson Fire-Rescue budget meeting at 3 p.m. today at the Port Townsend fire station, 701 Harrison St., that the remainder of funds allocated to the city be used to support fire services in the city.
In August, Port Townsend voters rejected a proposed levy lid lift for fire services within the city.
The city contracts for such services from East Jefferson Fire-Rescue.
Parallel to the budget process, the county is negotiating with labor unions to defer wage increases for one year, which would save the county $77,000.
Eight departments have union members, and have received a second set of numbers they will need to cut if an agreement cannot be reached with the unions, Morley said.
Morley will not comment about negotiations now in progress with the two unions to which county employees belong, the Teamsters and the United Food and Commercial Workers.
He said he did not expect the negotiations to be completed prior to the budget deadline.
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Jefferson County Reporter Charlie Bermant can be reached at 360-385-2335 or charlie.bermant@peninsuladailynews.com.