Shelton debates street funding: REIT, seasonal crews and a transportation sales-tax option

City staff told the Shelton City Council on Sept. 23 that the 2026 baseline budget does not include the same general-fund transfer to the street fund that was in 2025; staff proposed a $200,000 general-fund allocation plus the prospect of using real-estate-excise-tax (REIT) funds for street maintenance.

The nut graf: Council members debated short-term stopgaps versus long-term revenue options. Several members urged a study of a transportation-benefit-district sales-tax (TBD) or other dedicated revenue rather than relying on REIT as a recurring source; staff and council agreed to refine options and present a study session focused on transportation funding.

Staff reported that in 2025 the general fund allocated $400,000 to the street fund; for 2026 the baseline shows $200,000 from the general fund with the remaining $200,000 as a policy decision for either REIT or an additional general-fund allocation. Public-works staff explained that reducing the ongoing allocation would push the street program to a more reactive posture and would require scaling back services or staff; City staff said the street fund currently supports about 4.65 FTEs allocated to street operations.

Council members discussed a seasonal five-month employee (estimated $20,000) to address litter, weeds and downtown cleanup during the growing season; several members supported the…