Des Moines council directs staff to draft ordinance raising Transportation Benefit District vehicle fee to $50

The Des Moines City Council voted Nov. 6 to direct staff to prepare a draft ordinance increasing the Transportation Benefit District (TBD) vehicle fee (car‑tab fee) from $40 to $50. Deputy Mayor Steinmetz moved the directive and Councilmember Mahoney seconded; the motion passed on a 6–0 voice vote.

What staff presented Tommy Owens, the city engineer, told the committee the TBD was established in 2008 and the $40 fee (the current level) generates approximately $950,000 per year in restricted transportation revenue. Owens said a $10 increase to $50 would generate roughly $240,000 per year, which could fund about 1.5 full‑time equivalent street maintenance positions or increase annual paving volume by about 25%.

Timing and use Owens said the ordinance requires a notification period and revenues from a fee increase would likely not be realized until 2027. Any revenue from an increased TBD fee is restricted to transportation uses (street maintenance, pavement preservation, traffic signals, snow removal and related street‑fund work) and is intended to preserve general‑fund flexibility for non‑transportation services.

Council discussion Councilmembers noted the increase would keep pace with construction and materials cost inflation and fund visible local infrastructure, but some expressed concern about the cumulative effect of multiple revenue proposals on residents ("nickel and diming"). Several councilmembers asked staff to present how these changes would affect the budget scenarios that the council will consider at its next meeting.

Action and next steps Motion: "Direct staff to prepare a draft ordinance to increase the Transportation Benefit District fee to $50." Mover: Deputy Mayor Steinmetz. Second: Councilmember Mahoney. Vote: 6–0 in favor. Staff will prepare ordinance language, schedule required notifications and return the draft for council consideration and public hearing; revenues would be available after the statutory notice/implementation period.

Speakers and sources in this article are drawn from the meeting transcript and include Tommy Owens (city engineer), Deputy Mayor Steinmetz (mover) and Councilmember Mahoney (second).