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City staff brief council on Transportation Benefit District renewal; says renewal would keep 0.2% sales‑tax allocation

2091281 · January 8, 2025
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Summary

Transportation and engineering director Brandon Hicks briefed council on the Transportation Benefit District (TBD) renewal process, explaining the TBD is a renewal of an existing 0.2% sales‑tax allocation used for street preservation and that the council must submit a resolution by Feb. 21 to pursue a ballot measure.

Brandon Hicks, Tumwater’s transportation and engineering director, briefed the City Council on Jan. 7 about the city’s Transportation Benefit District (TBD) and the steps required to pursue a 2025 renewal.

Hicks said the TBD is a quasi‑municipal corporation governed in part by RCW 36.73 and Tumwater Municipal Code 12.42. He emphasized the renewal is not a sales‑tax increase: “this is not a sales tax increase. This is a renewal of a current 0.2% portion of the sales tax that is used to fund TBD projects,” Hicks said. The tax option used by Tumwater cannot be imposed for more than 10 years without voter reapproval; the existing TBD was established in 2014 and first funded in 2015 and is set to expire this year.

Hicks reviewed accomplishments funded by the TBD over the last decade, saying the district has generated more than $19,200,000 in revenue since inception and has supported maintenance work on more than 100 lane miles of city streets (more than 40% of the system). He said TBD funds also leveraged roughly $6,000,000 in grant funds and supported projects including the Israel Road improvements in front of city hall, Linwood Avenue sidewalk work and the Second Avenue pedestrian and bicycle improvements.

Hicks outlined next steps and a schedule for renewal. He said council must submit a resolution to the county by Feb. 21 to begin the process of placing a renewal measure on the April ballot and that staff intend to produce factual information for public distribution rather than lobby for the measure. He also said the TBD renewal would likely be for a 10‑year period if the sales‑tax option is used.

Council members asked about coordination with neighboring jurisdictions’ TBDs or vehicle‑license‑fee TBDs, prior paving activity and how the city will notify neighborhoods and associations about expected projects. Hicks said staff will present further details in upcoming meetings and will work on maps showing projects that are likely to occur under a renewal.

No formal action was taken at the briefing; the presentation set the schedule and staff next steps if council directs placement of a renewal measure on the ballot.