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Lakewood reviews Transportation Benefit District revenues, bond timing as vehicle‑license income declines
Summary
Council members reviewed a proposal to amend bond timing related to the Transportation Benefit District and discussed a 2024 TBD annual report showing roughly $835,000 annual revenue and a recent decline that staff said will affect future bond sizing.
City staff reviewed the Transportation Benefit District (TBD) annual report and a proposed ordinance to extend the date by which the city's designated representative can finalize terms for limited tax general obligation bonds at the April 21 meeting.
Deputy City Manager K. Krause (recorded as Miss Krause in the meeting) told council the proposed ordinance would extend the date bonds could be issued; she said the bonds would still mature by Dec. 31, 2044, but issuance would occur in 2025 and 2026 if the council approves the ordinance at a future meeting. Krause said staff will monitor market interest rates and will time issuance to get favorable terms when practical.
Krause presented the 2024 Transportation Benefit District annual report and said the TBD is primarily funded by a $20 annual vehicle license fee. She said the TBD has averaged about $835,000 in annual revenue but has seen a decline over the past couple of years. The 2024 revenues supported street maintenance, new LED street lights, neighborhood traffic calming and a local chip‑seal program, she said.
Council member Paul Bokey asked whether the TBD revenues would support the full planned bond issuance and whether a secondary source of repayment exists. Krause said the TBD revenues and project savings reduce the need to issue as much in bonds; she also said the bonds are general obligation obligations of the city and, if necessary, other city funds such as the general fund/property tax could be used, though that is not the plan.
No formal action was taken April 21. Council members asked staff to account for declining vehicle‑license collections when sizing future bond issues and to continue monitoring grant opportunities to reduce reliance on TBD bond proceeds.
