Snohomish County staff says vehicle-fee TBD needed to protect $66.5M in grants and avoid layoffs

County public-works leaders told the Snohomish County Council Public Infrastructure and Conservation Committee on April 21 that a proposed Transportation Benefit District (TBD) — starting with a $20 annual vehicle license fee — is a near-term tool to shore up road and bridge maintenance and preserve about $66.5 million in grant-funded projects.

"Transportation benefit district as proposed is a license fee. It's $20 per vehicle," said Kelly Stai, Snohomish County public works director, who presented the department's inventory of assets and shortfalls. Stai said the $20 fee would yield roughly $26,000,000, and that the county faces a combination of inflation, declining gas-tax revenue and an expanding asset base that have produced a multi-year capital shortfall.

Stai told the committee the county manages roughly 1,600 miles of roads, about 210 bridges (several with lane or weight restrictions) and about 500 miles of sidewalk. She said 14 grant-funded projects are at risk "for $66,500,000" if the county cannot demonstrate the local match or capital capacity those grants require. "If the council does not approve the TBD by June 1, then it will take us a few months to evaluate all of the grant conditions," Stai said, warning that some unobligated funds could have to be returned.

Committee members pressed staff about how the TBD fits with other tools, including a possible levy-lid lift. Stai said a levy-lid lift would be a longer-term solution (likely pursued in 2027–2028) but that county government cannot run the ballot campaign itself; outside groups typically organize and lead such measures. "The Transportation Benefit District [is] to address the shortfall that we see in this year," Stai said.

Council members also raised operational concerns: Stai said the department's current vacancy rate is about 18 percent (roughly 74 positions), the county canceled some seasonal hires (about 60 FTEs) and that losing approximately $6,000,000 associated with the TBD could put about 34 additional FTEs at risk. Deputy Director and County Engineer Doug McCormack added that reduced maintenance increases public-safety risk and future repair costs, and that legal exposure from failing infrastructure is a growing budgetary concern.

Staff outlined how grant reductions would be handled: projects already in progress or that have reached certain milestones may avoid returning funds, while others would be evaluated and potentially shut down to avoid paying back already-spent money. Stai said the county is also compiling comparative data from neighboring counties about levies and TBD structures and plans a stakeholder process for any traffic-mitigation fee changes.

Following the presentation, council staff reported three ordinances related to the TBD. The package would: add a county code section imposing a $20 annual vehicle license fee (effective six months after passage if approved); adjust the TBD boundary language to match unincorporated county limits; confirm the Snohomish County Council as the TBD governing body; and revise permitted uses of TBD funds to align with state law and county transportation planning documents. Council staff asked the committee to move Ordinances 26-009, 26-010 and 26-011 to the general legislative session on April 22 to set a public hearing for May 13, 2026; the committee moved the items forward without recorded objection.

Other action items on the committee agenda — moved to the April 29 GLS on consent — included contract approvals and contract amendments: a three-year refrigeration maintenance contract with 5 Star Mechanical (cost not to exceed $100,000), an amendment adding an asset management module to Archibus from Applied Data Systems, Inc. (additional $31,508; contract total ~$982,533.38), an interlocal agreement with Seattle City Light for ortho imagery/GIS support (work orders not to exceed $26,250), and a website accessibility amendment with ICON Enterprises dba CIVIC Plus (additional $134,673; new total ~$1,393,272.25).

The committee recessed at the end of the meeting; the ordinances on the TBD were scheduled for the GLS and a public hearing on May 13, 2026 as the next procedural step.