Title
Consideration of Transportation Revenue for Capital Projects
Recommended Action
Finance Committee Recommendation:
Discuss Transportation Benefit District sales tax revenue with the full Council.
City Manager Recommendation:
Move to direct staff to draft an ordinance for City Council consideration to impose a Transportation Benefit District sales tax.
Report
Issue:
Whether to direct staff to draft an ordinance for City Council consideration to impose a Transportation Benefit District sales tax.
Staff Contact:
Sophie Stimson, Transportation Director, Public Works Transportation, 360.753.8497
Presenter(s):
Sophie Stimson, Transportation Director
Background and Analysis:
The community has asked for greater progress and more funding emphasis on bicycle and pedestrian infrastructure.
In April and July of this year, the Finance Committee discussed transportation funding needs and more fully funding the Transportation Master Plan (TMP) which emphasizes bicycle and pedestrian improvements.
A potential source of new revenue for transportation infrastructure projects is a Transportation Benefit District (TBD) sales tax. The TBD is an independent taxing district created for funding transportation improvements within the district. Olympia's TBD has been in place since 2009 and the district boundaries are the City limits.
Our TBD currently generates about $1.5M per year through $40 vehicle licensing fees. To date, we have used the revenue for pavement management, but it can be used for other transportation funding needs.
The TBD can also generate revenues through a sales tax. Other Washington cities use both the vehicle license fee and sales tax mechanisms to generate revenues.
A 0.1% sales tax, collected through our TBD would generate approximately $3.1M annually. The revenue could fund pedestrian and bicycle infrastructure projects identified in the TMP.
If pursued by the Council at the end of this year, the new revenue would be available for funding cap...
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