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Lancaster County weighs new transportation sales tax package to fund road projects including widening of 521
Summary
County staff and volunteer committee recommended new ballot packages totaling roughly $216 million to $250 million over 10 years to fund widening of Highway 521 and municipal road repairs; county council will consider directing staff to prepare a referendum resolution on April 28.
Lancaster County officials described plans this week to return to voters with a transportation sales tax proposal to fund road widening, repaving and intersection projects across the county.
County Administrator Dennis Marshall told the joint meeting that a volunteer transportation committee recommended a roughly $216 million package over 10 years, and staff proposed an alternative of about $250 million over the same period. Both proposals would reserve $60 million to $85 million for municipal and county roads and include a major widening project on U.S. Highway 521.
The proposal understudy would fund one additional lane in each direction on 521 from the state line to Highway 75 at Walnut Creek, plus repaving, roundabout and intersection improvements and allowances for cost escalation. Marshall said the transportation sales tax option differs from the county's capital project sales tax and can run for as long as 25 years, though the county is discussing a 10-year term to reach the dollar target sooner.
The county previously placed a one-percent proposal on the November 2024 ballot that would have raised the local sales rate from 8% to 9; that initiative failed. Marshall said the prior ballot had identified roughly 130 roads for improvement and more than 40 specific roads in the City of Lancaster. He told council that the earlier package included about $100 million for municipal and county roads and that the current proposal trims that to about $85 million for those projects in one version.
Marshall said local funds would leverage state and federal matching dollars. "It helps to have local skin in the game," he said, noting that dedicated local funding can attract state infrastructure bank and other matching funds. County staff also provided an estimate that about 30% of sales tax payers on transactions in the county are nonresidents, a factor officials are using in framing the local match argument.
City and county officials asked for details on road lists and geographic distribution. James Absher, the city finance director, and other city representatives were told that the road list would be made available if the referendum proceeds and that municipal roads in every district were included in the committee's considerations.
County council will decide whether to direct staff on April 28 to prepare a resolution placing a transportation sales tax referendum on a future ballot. If council directs staff, the council would later set a date for the referendum and finalize the package to present to voters.
