East Wenatchee City Council Considers Sales Tax Hike for Public Safety

The East Wenatchee City Council may elect to impose a sales tax increase to address the costs of essential services, primarily the financial demands to fund public safety.

Public safety accounts for the largest single category in the city's general fund at 68%. That includes funding for the East Wenatchee Police Department, plus public defender costs and the contract for bed space at the Chelan County Regional Jail.

Police Chief Rick Johnson says public safety costs have increased dramatically since 2020, and sales and property tax revenues have not kept pace. He cited a 165% increase in the jail contract, which is now $1,013,000 per year, and liability insurance coverage has nearly tripled. The police chief says a PSST would allow his department to maintain services at present levels and reduce the drain public safety costs are having on the general fund reserves.

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New State Law Permits Municipalities to Increase Taxes for Public Safety

SB5775 was approved by the Washington State Legislature to enable municipalities to impose a public safety sales tax (PSST) without a public vote (councilmanic) with revenue dedicated to public safety. The PSST would raise the current sales tax from 8.6% to 8.7%, and the 0.1% increase would collect an estimated $550,000 annually, according to city projections.

The additional tax adds 10 cents to a $100 purchase in the City of East Wenatchee. The city estimates the average household would pay about $25 in extra PSST each year. Vehicle sales, gas, and most grocery items are exempted from PSST. The city also claims that approximately 77% of all sales tax paid in East Wenatchee is by non-residents.

If the city council adds a PSST, the East Wenatchee Police Department is eligible for a state grant of $125,000 per year for the hiring and training of new police officers.

Johnson says under the current budget constraints, his department is staffed with 2 fewer officers compared to 2020 staffing levels, and calls for service have increased by over 900 per year, and arrests are 50% higher in the same time span.

The city council is expected to vote on whether to implement a PSST as early as August.