PORT TOWNSEND — Jefferson Transit Authority Board is expected to ask voters to increase the local sales tax to avoid service cuts.
The board will consider putting the measure on the Nov. 2 general election ballot no later than July 20.
The board will meet at 1:30 p.m. at Mountain View Commons at the corner of Walker and Blaine streets.
At least one public hearing would be scheduled before the board’s action.
A decision must be made before Aug. 10, the deadline to file a resolution with the county Auditor’s Office elections division to be placed on the Nov. 2 general election ballot.
Employee furloughs
In the meantime, new transit General Manager Peggy Hanson said she ordered 10-day unpaid employee furloughs and pay freezes for up to 10 nonunion employees of a staff of about 30, including herself.
Pay freezes for nonunion employees were first implemented in 2008, and Hanson has extended that through this year.
“We’re in a revenue shortfall mode,” said Hanson, a former Portland TriMet executive who took over in Jefferson Transit’s top spot a month ago.
“Our sales tax revenue income was down by 6 percent. It has been decreasing since 2007 and is at a point where it is very unstable.”
Warns of severe cuts
If things remain as they are, she projected that by the end of 2011 “severe service cuts” would have to be made, which could lead to layoffs down the road.
Hanson said no layoffs have taken place so far.
The furloughs will save transit almost $25,000, she said.
She has also suspended moving forward on any transit improvement projects that would require the agency to pay matches for state or federal grant dollars.
That affects improvements to facilities and buying new buses to replace aging vehicles.
The furloughs go into effect July 1 and must be taken no later than Sept. 30, she said. Employees will be allowed to choose which days they take unpaid.
Sales tax measure
The transit board could ask for the highest sales tax increase allowed by state law, which would top out at nine-tenths of a cent on every dollar shoppers spend in the county.
That would be a three-tenths of a percent increase to six-tenths of a cent.
The original sales tax of three-tenths of a cent was approved by county voters in November 1980.
Transit officials have said the agency needs an injection of at least $200,000 to remain cash-flow solvent.
“I would think we have to ask the voters,” said Catharine Robinson, Transit board chairwoman, a former Port Townsend mayor and now a City Council member.
“Sales tax is our main source of revenue.
“It is a tough time, and I know the people in Jefferson County depend on transit.”
Keep services
Hanson said her main goal is to sustain existing services.
She also wants to restore some service cuts and rebuild the agency’s reserve, or contingency fund.
“The thing to be protected the most in hard economic times is the rider,” Hanson said.
However, staff cuts could be ahead.
“There may be layoffs in our future. There may be positions that will not be filled,” she said.
Transit officials in April presented three options the board can present to voters:
• A one-tenth of a cent increase in sales tax, or 1 cent on $10 spent, to generate $378,000 in a year.
• A two-tenths of a cent increase in sales tax, or 2 cents on $10 spent, to generate $756,000 in a year.
• A three-tenths of a cent increase in sales tax, or 3 cents on $10 spent, to generate $1.134 million a year.
Future cuts could include no Sunday service, significant cuts in Monday-Saturday routes and deferring planned transit improvements, transit officials reported.
If a one-tenth of a cent increase is proposed and approved, transit “hugs the zero line” after 2012, said Mike Pollack, who acted as general manager before Hanson was hired.
With a two-tenths of a cent increase in sales tax, existing services could remain and planned capital improvements could be made, he said.
With a three-tenths of a cent increase, additional service would be possible such as a route to the Kingston passenger or car ferries, van pools and additional service to the Tri-Area, where ridership is greatest.
Transit also would be able to maintain matches for state and federal grant dollars, officials said.
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Port Townsend-Jefferson County Editor Jeff Chew can be reached at 360-385-2335 or at jeff.chew@peninsuladailynews.com.
