Where you spend your money is important | Business Connections

Jeff Uberauga, owner of Red Apple Market in Poulsbo, packs a Christmas food box with items purchased by the Poulsbo Noon Lions Bellringer Fund in 2011.                       - Richard Walker / 2011
Jeff Uberauga, owner of Red Apple Market in Poulsbo, packs a Christmas food box with items purchased by the Poulsbo Noon Lions Bellringer Fund in 2011.
— image credit: Richard Walker / 2011


POULSBO — Spending your hard-earned money in your community is important because it helps your neighbors and fellow community members.

“A dollar spent at a locally owned store is usually spent six to 15 times before it leaves the community,” Tim Mitchell of Northwest Earth Institute’s Choices for Sustainable Living told

“From $1, you create $5 to $14 in value within that community.”

In other words, money circulating locally is a good thing. Money spent outside the community circulate in some other community.

When you spend money in a local restaurant or store, the community benefits in many ways, said Jan Harrison, executive director of the Greater Poulsbo Chamber of Commerce.

Money spent in local businesses helps pay the wages of local workers who, in turn, spend their paychecks on goods and services — locally, it is hoped, continuing the cycle.

Spending your money locally helps businesses in other ways, Harrison said. Businesses get to know what local consumers want and need, and can accommodate  market demand so local consumers don’t have to shop elsewhere.

Deb Booher, City of Poulsbo finance director, said shopping locally generates sales tax revenue that supports local services. The sales tax in Poulsbo is 8.6 percent. Poulsbo receives 1 percent from the state as its share; the remainder helps support 9-1-1, county law and justice, public transit, and services provided by the state.

All of the city’s sales tax  goes into the city’s General Fund and is the largest funding source. The General Fund supports city government services, police protection, parks and recreation, and streets.

Finance Department reports show sales tax revenue declined between 2001-12, though a slight increase is expected in 2013.

Booher said the decline was a result of the periods of recession and recovery, combined with the loss of auto dealerships on Viking Avenue and a slowdown in construction.

The local economy is getting a boost from new businesses in downtown Poulsbo and on Viking Avenue, continued construction at College Marketplace, and construction of the Safeway grocery store and gas station at 10th Avenue and Lincoln Road.

Booher said Safeway will boost the local economy through general sales taxes on construction, jobs created during construction, and jobs created when the store opens. Booher said the store will generate more shoppers, who will spend dollars locally, supporting the jobs within and generating more local sales tax revenue. And the cycle continues.

Harrison added, “Safeway will not only bring a new grocery store, but it will also bring 16-20 pump gas station, an underground parking garage and a lot of jobs for the community.”

Poulsbo sales taxes at a glance

Citywide since 2009
2009: $2.746 million 
2010: $2.829 million
2011: $2.754 million
2012: $2.674 million
2013 to date: $1.314 million. On target to pass 2012 in total revenue.

Since 2009, February has been the biggest sales-tax generating month, generating an average of $275,869 in revenue for the city. The second-biggest month is September, at $245,474; the third-biggest is August, at $242,642.

By zone since 2008
The City of Poulsbo has six business zones: Historic Downtown Poulsbo Association, or HDPA; Viking Avenue Corridor; Highway 305 Corridor; North of Jensen Way, West of 4th Avenue, and Downtown Area excluding HDPA; College Marketplace; and Outside City Limits, such as online shopping.

Here’s how each zone did since 2008.
2008: $149,909
2009: $143,136
2010: $164,533
2011: $173,404
2012: $173,804

Viking Avenue
2008: $505,665
2009: $315,734
2010: $309,166
2011: $275,853
2012: $258,973

Highway 305
2008: $526,225
2009: $521,965
2010: $499,228
2011: $488,953
2012: $500,631

North of Jensen Way
2008: $132,730
2009: $150,852
2010: $136,153
2011: $115,348
2012: $115,775

College Marketplace
2008: $789,551
2009: $808,299
2010: $844,374
2011: $864,863
2012: $862,987

Outside City Limits
2008: $915,857
2009: $836,559
2010: $896,749
2011: $785,547
2012: $777,587

— Source:  City of Poulsbo budget


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