Ellensburg council directs staff to pursue separate transit sales-tax measure and study street-funding option
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Summary
The Ellensburg City Council voted to put a new 0.2% transit sales-tax measure on a future ballot separate from a proposal to dedicate 0.1% for street maintenance, and asked staff for detailed financial analyses and a subsidized-fare review for transit.
The Ellensburg City Council voted Wednesday to pursue a separate ballot measure asking voters to continue or replace the current 0.2% transportation sales tax for transit and asked staff to prepare a parallel report on dedicating 0.1% for street maintenance.
The measure directs staff to draft a transit-focused ballot resolution that would use the transit sales-tax mechanism available under state law and to return to council with financial detail, timing options and an analysis of a rider-cost (subsidized-fare) model. Councilmembers made the decision after public comment and discussion that emphasized both high ridership and the budgetary pressure of maintaining streets.
City staff told council the existing transportation-benefit-district (TBD) sales tax — 0.2% approved by voters in 2016 — expires Oct. 1, 2026, and that the Department of Revenue only begins collections on Jan. 1, April 1 or July 1, which affects election timing. Staff also said recent state grant rules limit using transit-dedicated dollars for non-transit purposes, reducing flexibility to shift those revenues to streets without risking grant eligibility.
Council member comments and public speakers were split. Several residents argued for keeping transit free and highlighted 116,000 rides in 2024; others urged requiring riders to pay a portion to increase “skin in the game.” Council asked staff to include in the packet: projected revenue, the cost of a permanent transit sales tax versus a 10-year TBD renewal, potential ridership and subsidy scenarios, and timing options for placement on upcoming ballots.
Council also passed a separate motion directing staff to prepare a report estimating the revenue and impacts of dedicating 0.1% for street maintenance under the TBD model. That report will be used to decide whether to place a street-maintenance measure before voters and what timing or sequencing to use.
The council’s direction sets two parallel work streams: (1) draft a transit-sales-tax ballot measure (permanent transit tax option) and return with full fiscal analysis and subsidy/fare alternatives, and (2) prepare a TBD-based analysis of a 0.1% street-maintenance funding option for future consideration.
The council asked staff to return with the requested materials in mid-June to early July to allow deliberation on ballot timing and content.
