Title
Approval of an Ordinance Imposing a Transportation Benefit District Sales and Use Tax of One-Tenth of One Percent (0.1%)
Recommended Action
Committee Recommendation:
The Finance Committee recommends approving an ordinance imposing a Transportation Benefit District (TBD) Sales and Use Tax of one-tenth of one percent (0.1%).
City Manager Recommendation:
Move to approve on second reading, an ordinance imposing a Transportation Benefit District (TBD) Sales and Use Tax of one-tenth of one percent (0.1%).
Report
Issue:
Whether to approve on second reading, an Ordinance imposing a Transportation Benefit District (TBD) Sales and Use Tax of one-tenth of one percent (0.1%).
Report
Issue:
Whether to approve of an ordinance imposing a Transportation Benefit District (TBD) Sales and Use Tax of one-tenth of one percent (0.1%).
Staff Contact:
Sophie Stimson, Transportation Director, Public Works Transportation, 360.753.8497
Presenter(s):
None - Consent Calendar item.
Background and Analysis:
There were no changes in the ordinance from first to second reading.
The community has asked for more funding for bicycle and pedestrian infrastructure. This year, the Finance Committee discussed more fully funding the Transportation Master Plan (TMP) which emphasizes bicycle and pedestrian improvements.
On November 6, Council agreed to pursue the use of the TBD sales tax for bicycle and pedestrian projects. A 0.1% sales tax, collected through our TBD, would generate approximately $3.1M annually. The new revenue would be available for funding capital projects starting with the 2025 Capital Facilities Plan (CFP). Of the six programs in the CFP Transportation Chapter, the programs that can be funded with these revenues are:
• Sidewalks and Pathways
• Bicycle Improvements
• Access and Safety Improvements
The funding would not be available for these three CFP programs:
• Street Repair and Reconstruction
• Major Street Reconstruction
• Intersection Improvements.
The sales and use tax revenues will be restricted to funding only bicycle, pedestrian, and other active transportation projects.
To increase the pace of CFP project delivery, sales tax revenue (approximately $130,000 per year) is also proposed to be used for a Project Engineer position within Public Works Transportation. This position would scope and design capital projects.
Concurrently, an ordinance revising the Olympia Municipal Code OMC 3.04.200(I) is proposed to direct sales and use tax revenues to bicycle, pedestrian, and other active transportation projects exclusively.
Climate Analysis:
In the Thurston Region, transportation-related emissions are the second largest source of greenhouse gas emissions. Reducing our dependence on fossil fuels in transportation is essential to lessening our impact on the climate. We can do that by replacing gas-powered vehicle trips with trips made by walking, biking, and transit. Increasing funding for Transportation projects in the TMP make those modes more safe and inviting. Funding more projects in the TMP more quickly, will help us reduce those emissions.
Implementing the TMP will help us achieve the following strategies:
• T2. Increase the efficiency of the transportation system. TMP projects will retrofit our streets to make walking, biking and transit more safe and inviting.
• T4. Increase the use of public transit. TMP projects help make transit more inviting for more people through better access to bus stops. Changes to signals and street design to prioritize the movement of buses.
• T5. Increase the use of active forms of travel, such as walking and biking. TMP projects add enhanced bike lanes, bike corridors, sidewalks, enhanced crosswalks, and pathways to our streets to better serve people walking and biking.
Equity Analysis:
TMP projects will make it easier to walk, bike and ride the bus. These projects help make our transportation system more fair by changing our streets to better serve a wider range of people.
The projects can provide better mobility for people who choose not or, for a variety of reasons, cannot drive a car. With better mobility for more people, we can increase access to jobs, services, and social connections. The TMP contains a discussion of equity on page 146.
Neighborhood/Community Interests (if known):
Public input was sought in Fall 2019 on funding priorities as part of the development of the Transportation Master Plan. In comments about the 2023 and 2024 preliminary Capital Facilities Plan, members of the public and the Planning Commission had indicated a need to increase funding for multimodal transportation. Related to the November 6 City Council discussion of the sales tax proposal, comments were received from the public supporting the proposal. No comments opposed the proposal.
Financial Impact:
A sales tax increase of 0.1% implemented through the TBD, would generate approximately $3.1 million for bicycle, pedestrian, and active transportation infrastructure projects.
Options:
1. Approve on second reading, an ordinance imposing a Transportation Benefit District (TBD) Sales and Use Tax of one-tenth of one percent (0.1%).
2. Modify the ordinance imposing a Transportation Benefit District (TBD) Sales and Use Tax of one tenth of one percent (0.1%). Staff will modify the ordinance prior to second reading.
3. Do not approve an ordinance imposing a Transportation Benefit District (TBD) Sales and Use Tax of one tenth of one percent (0.1%). Additional revenues will not be collected for bicycle, pedestrian, and active transportation projects.
Attachments:
Ordinance