Recent sales tax revenue numbers from the city of Port Townsend indicate an economy on the rebound following the abrupt financial impacts of the coronavirus pandemic in 2020.
With a 50 percent …
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Recent sales tax revenue numbers from the city of Port Townsend indicate an economy on the rebound following the abrupt financial impacts of the coronavirus pandemic in 2020.
With a 50 percent increase in sales tax revenue from January to July when compared to the pre-pandemic numbers in 2019, this year’s revenue levels allude to a recuperating local economy in Port Townsend.
The city of Port Townsend’s Council Finance and Budget Committee presented and discussed the numbers during its July 20 meeting.
City officials noted beforehand that, generally, key revenues have recovered from COVID impacts and in some cases are coming in better than forecast and pre-COVID levels.
For sales tax revenues, the city brought in an average of $55,883 per month in 2018, $48,121 per month in 2019, $43,547 per month in 2020, $70,185 per month in 2021, and $68,562 per month so far through 2022.
“It’s been a really good year for sales tax … they’re all coming in pretty good so far this year,” said Ron Logghe, finance manager for the city.
“Overall, the approach seems to be projecting revenue to increase,” he said.
Other city revenue sources were discussed in the meeting including real estate excise taxes, building permits, lodging taxes, and other money sources as Port Townsend gears up for the annual city budget.
While most data indicated growth from 2020 with revenues nearing or reaching the same level as pre-pandemic numbers, city staff did not see the same for real estate excise taxes and building permits.
In preparing for the 2023 budget, city officials reviewed their own and other agency forecast updates and the consensus suggested an increase next year, except in the areas of real estate excise taxes and building permits.
The city also noted that some agencies are forecasting as much as a 15 percent decline in building permits and real estate taxes.
In Port Townsend, however, there are developments occurring that have increased those revenues, which will likely continue into next year.
Officials said the forecasts will be revisited during the budget process.
According to city staff, the preliminary budget forecast indicates a 2 percent increase in most key revenues, with a small decrease in funds from real estate excise taxes and building permits.
The city’s Council Finance and Budget Committee is scheduled to meet again Aug. 17.
