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Shelton council approves placing 0.2% sales-tax renewal on August ballot
Summary
The City Council voted to place a measure renewing the Transportation Benefit District sales-and-use tax at 0.2% on the Aug. 5 ballot after debate about raising it to 0.3%. Council members cited road and sidewalk needs and an ongoing budget shortfall.
The Shelton City Council voted April 15 to place a ballot measure on the Aug. 5 special election to renew a 0.2% sales-and-use tax for the Shelton Transportation Benefit District.
City Manager Mark Schluer told the council the current 0.2% tax, approved by voters in 2015, is set to expire in February 2026 and that the city currently collects about $750,000 annually from the levy. “Right now we're collecting about $750,000,” Schluer said, describing the tax as a critical revenue source for both vehicle and pedestrian projects.
The measure will ask voters to renew the 0.2% tax for another 10 years. Council members debated whether to ask voters for 0.3% instead; one council member moved to amend the proposal to 0.3%, but the amendment failed for lack of a second. After discussion about the city’s capital projects and past use of TBD funds, the council approved the resolution to place the 0.2% renewal on the ballot.
Council members and staff framed the renewal as preservation of an existing revenue stream used to leverage grants and pay for large road projects and pedestrian improvements. Schluer and other speakers listed recent or planned projects funded in part with TBD proceeds, including a downtown gateway project, Jefferson Street work and a roundabout, and said the funds also support sidewalk work. Council members noted the city has more than 50 square miles of roads and that sidewalks and ADA work are among priorities informed by the city’s pavement condition index and ADA transition plan.
Schluer told the council the tax is collected from all taxable sales inside the city, including purchases by nonresidents who shop in Shelton, and said without the TBD funds the city would face a different budget picture in 2025.
The council voted to approve resolution 1376-0325 to place the renewal on the Aug. 5 ballot. No roll-call vote tally was provided in the meeting minutes.
The council also scheduled a May 5 retreat to discuss service levels and the broader budget outlook.
