Poulsbo's 2010 sales tax revenue up over 2009; city marketing website soon to be launched

Poulsbo’s share of sales tax revenue generated in the city in 2010 was $2.85 million, $73,691 more than in 2009. And city Finance Director Debbie Booher said the city is off to a promising start in 2011.

While sales tax revenue was lower than in 2008, 2007 and 2006, revenue generated by business conducted here by firms located elsewhere, like construction companies, continued to outpace all previous years. That revenue was more than $1 million. The city also saw continued growth in revenue from College Marketplace.

The city tracks sales tax revenue generated by zone: Zone 1, the Historic Downtown Poulsbo Area; Zone 2, the Viking Avenue Corridor; Zone 3, the Highway 305 Corridor; Zone 4, the area north of Jensen Way, west of 4th Avenue and downtown excluding the HDPA; Zone 6, College Marketplace; and Zone 99, outside city limits. There is no area designated Zone 5.

In 2010, the city received $124,025 from Zone 1, up from $113,217 in 2009 but lower than all previous years; $296,860 from Zone 2, which lagged behind other years, a reflection of the absence of Poulsbo RV and all dealerships save Courtesy Ford; $463,276 from Zone 3, lower than previous years; $137,325 from Zone 4, which was slightly higher than in 2008 but lower than in 2009, 2007 and 2006; $795,000 from Zone 6, a consistent year-over-year increase; and $1,033,195 from Zone 99, the biggest source of sales tax revenue.

All told, the city’s total share of sales revenue was $2,850,234 in 2010; $2,776,543 in 2009; $3,024,044 in 2008; $3,193,143 in 2007; $3,083,160 in 2006; $2,415,900 in 2005; $2,198,397 in 2004; $2,226,382 in 2003; and $2,135,194 in 2002.

The data is contained in reports dated March 17 and March 23, presented by Booher to the mayor and the City Council's Finance/Administration Committee.

In the report, Booher said the city was off to a promising start in 2011. “Sales tax paid in January and received in March was up 3.59 percent ($7,219) over the same period last year,” she wrote. “The category which showed the largest increase is Construction, which continues to be reflective of the building activity in the College Market Place Development. A large decline in the Real Estate category can be attributed primarily to businesses who are in the industry of leasing. Retail Trade’s decline is in the area of Motor Vehicle Sales.”

Poulsbo city officials are working to lure a hotel downtown to spur more economic development in that section of the city. Property owners on Viking Avenue are working on plans to attract new businesses to that once vibrant stretch of commerce. And Mayor Becky Erickson has initiated a soon-to-be-launched city marketing website,, which follows the same design as the city website and has information about city demographics, business districts, zoning and development code, and community organizations.

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