Lynnwood council weighs major transportation projects against maintenance needs, staff recommends extending TBD sales tax

City staff briefed the Lynnwood City Council on March 16 about a multi‑year transportation program that includes seven large projects, funding constraints and options to raise local revenue.

David Mach, the city engineer, told the council the city’s capital portfolio for the next decade includes the I‑5/44th pedestrian underpass, a Public Facilities District (PFD) ring road, the Poplar Way Bridge, a study of congestion at the Costco/Alderwood Mall area, a new downtown grid street to break up mega blocks, and pre‑planning around a planned Sound Transit light‑rail station. Some projects could begin construction this year or next; others are tentatively scheduled out to 2028–2032 depending on grants and development timelines.

Mach said the city’s transportation fund draws on multiple sources: a Transportation Benefit District (TBD) that produces roughly $3 million annually in sales tax and about $1 million from vehicle registration fees, transportation impact fees that vary with local development, real‑estate excise tax (REET), utility contributions where appropriate, and grants. Staff characterized average grant inflows over the past decade at about $8–9 million per year and estimated roughly $14 million per year of capital resources (with many of those dollars earmarked or restricted).

Because many large projects rely on restricted grants, Mach urged the council to consider the stability of local funding. Staff recommended the council extend the voter‑approved 0.1% TBD sales tax before it automatically expires in April 2027 so budgeting and multi‑year project plans can assume the revenue. “That’s the reasoning behind our timing,” Mach said, noting that the state law change now lets councils assume the TBD rate without a new public vote.

Several councilmembers welcomed the long‑range projects but said the city should prioritize maintenance, safety and nonmotorized access. “I would so much rather us spend the money on package number 1 and 2,” Councilmember Mata said, referring to the city’s proposed traffic‑safety and Connect Lynnwood nonmotorized packages (neighborhood calming, a road‑safety plan, sidewalks and bike improvements). Multiple councilmembers warned that deferred maintenance (sidewalks and pavement) increases future liability and costs.

Staff offered three illustrative priority packages if the council elected to increase funding: (1) traffic safety enhancements and neighborhood calming, (2) expanded Connect Lynnwood walking and biking improvements, and (3) a more aggressive paving program to raise paving investments significantly above current levels. Mach and Nick Barnett, the engineering and construction services manager, said some smaller grant programs target safety and nonmotorized work but require local match and staff capacity to deliver projects.

Councilmembers also discussed the Economic Development Investment Fund (EDF), which was suspended in 2020; some members urged reexamining the EDF formula and reinstating it as a stable local revenue source. Council Vice President Escamilla suggested exploring participatory budgeting to involve residents in setting priorities.

During the briefing Jared Vaughn announced an immediate win for the Poplar Way project: the city had been awarded an additional $1,500,000 in state grant funding.

The council moved the meeting extension motion to finish the agenda (voice vote; individual tallies not recorded in the transcript) and scheduled follow‑up budget and maintenance discussions in April to examine staffing, tradeoffs for in‑house work, and detailed funding scenarios.