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Sumner staff recommend citywide transportation benefit district; 0.1% sales-tax option would raise about $800K a year
Summary
At the June 23 study session, City Administrator Jason Lisonbee and Communications Director Carmen Palmer outlined a plan to form a citywide transportation benefit district (TBD) and recommended the council consider a 0.1% sales-tax option that staff estimates would generate about $800,000–$850,000 annually.
At the June 23 study session, City Administrator Jason Lisonbee and Communications Director Carmen Palmer outlined a plan to form a citywide transportation benefit district (TBD) and recommended the council consider a 0.1% local sales-tax option that staff estimates would generate about $800,000–$850,000 annually for street maintenance and transportation projects.
Staff said the TBD would provide a stable funding source dedicated to maintenance and construction and that most neighboring cities already use TBD funding. Palmer said residents repeatedly prioritized road maintenance in public outreach: “When are you fixing Washington Street?” she told the council, reporting that the question came up at a recent open-house and at Rhubarb Days.
Staff recommended that the district follow city limits rather than a partial boundary because partial districts are administratively complicated. The presentation outlined a three-step process required by state law: (1) form the transportation benefit district (declaration), (2) assume control of the district so the council can manage TBD business within regular council meetings, and (3) enact an ordinance specifying the funding mechanism (for example, a 0.1% sales-tax).
Key details staff provided: - Estimated revenue: $800,000–$850,000 per year from a 0.1% sales-tax, restricted to transportation construction and maintenance; the levy would be renewable after 10 years. - Policy and process: the council would hold required public hearings and publish outreach materials through SumnerConnects, the print newsletter and other channels. Staff recommended waiting a few quarters after revenue begins before allocating funds so collections can be verified. - Alternatives and politics: staff said many neighboring jurisdictions adopted a vehicle license (“car-tab”) fee, but that option appeared politically fraught and staff recommended the sales-tax approach for simplicity and predictability.
Council members asked about governance and spending. Lisonbee said assuming control would let council handle TBD business during regular council meetings rather than maintaining a separate board; he said allocations would be brought back to council as budget or budget-amendment items and would typically go through the Finance or Public Works committee for review. Lisonbee told the council, “I would anticipate that we would not allocate funds until we get a few quarters in and verify that we're getting what we think that we would be getting.”
No formal vote to form a TBD occurred at the study session. Council members asked staff to prepare public-facing materials and speaker notes so elected officials can explain the proposed TBD and its likely uses when speaking with residents. Staff said the next formal steps will include the ordinance to form the district, a public hearing and then the ordinance to fund it if the council chooses to proceed.
