PORT TOWNSEND — Residents could be voting on property tax levies this fall to keep the city’s coffers in the black.
The city stands to lose money by 2006, City Manager David Timmons said Thursday.
A statewide voter initiative proposed for this year could put the city in the red even sooner — by early next year, he said.
Timmons and Finance Director Michael Legarsky sat down with the City Council on Thursday afternoon in a workshop to discuss problems facing next year’s budget.
Topping the discussion was the impact that Initiative 864 could have on city finances.
The initiative to the people, tax-cutting guru Tim Eyman’s latest measure, would roll back some, but not all, local property-tax levies by 25 percent.
In Port Townsend, it would trim city revenue by more than $477,000 next year, and slightly more each additional year, Timmons said.
The city stands to lose $1.16 million over the next three years, he said.
Initiative backers say the revenue will be made up by gambling proceeds, but Timmons doubts that money will come through.