City Faces Budget Shifts After Sales Tax Passes

At its bimonthly meeting Tuesday, East Wenatchee City Council approved a sales tax increase and narrowed its search for a new councilmember.

Sales Tax Increase and Public Safety Funding

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The new sales tax is allowed under a new law permitting municipalities to impose a tenth-of-a-percent sales tax with revenue dedicated to public safety. The new sales tax will be a total of 8.7 percent and will collect an estimated $550,000 annually.

READ MORE: Five Candidates Compete For East Wenatchee City Council Seat

The city proposed the sales tax because of inflation, an increase in the jail contract, plus public defender costs. The city claims approximately 77 percent of all sales tax paid in East Wenatchee comes from non-residents.

Now that the sales tax passed, East Wenatchee Police Department is eligible for a state grant of $125,000 per year to hire and train new police officers.

City Budget and Deficit Reduction

Earlier this year, the City faced a $900,000 budget shortfall. Through corrective measures, the deficit has been reduced by about $300,000. It is unclear how the new sales tax increase impacts the city's budget outlook.

Councilmember Position 1 Candidate Interviews

Meanwhile, councilmembers interviewed Jason Grover, Kayla Hodges, Nicole Marra, John Sterk, and Taylor Stimmel for the Position 1 seat Mark Botello vacated.

After deliberating in executive session, the council came back with a tie between Hodges and Stimmel. Mayor Jerrilea Crawford decided not to break the tie, as she believed it should be the council's decision.

The council will interview Hodges and Stimmel and make their final decision at its Sept. 2 meeting.

Lacy Stockton, Seat 4, announced she is moving out of the area.

Mayor Crawford said Ettore Castellente, who is in Seat 3, will likely fill Stockton's seat as he filed to run for it unopposed. East Wenatchee residents will vote on Seat 3 in November.