Lynnwood staff propose $1 million operations increase and $35 million capital program; sales tax, tab fees and cameras among funding options

Public Works Director Jared Bohn and City Engineer David Mach told the Lynnwood City Council on June 22 that the city needs roughly $1 million in additional annual operations funding to refill authorized streets positions, create a three-person sidewalk/concrete crew and hire an assistant traffic engineer — and that a larger multi-year capital package of about $35 million would be needed to fill gaps in sidewalks, bicycle facilities and multimodal connections.

Bohn said the streets division is operating “lean” — authorized for six maintenance workers but currently staffed with four — and that the top near-term priorities are refilling two maintenance positions, adding an assistant traffic engineer and funding a dedicated in-house concrete crew that could handle grinding, panel replacement and ADA ramp corrections. “We’d really like to be fully staffed,” Bohn said, adding that a three-person concrete crew would improve pedestrian safety and reduce trip hazards.

Mach presented the financial picture and a menu of revenue options. He estimated $200,000 would bring staffing back to authorized levels, about $180,000 would fund an assistant traffic engineer position, and materials and equipment for a concrete crew would push the total near-term operations ask to roughly $965,000–$1,000,000. For larger capital work — sidewalk corridors and bicycle facilities bundled over a decade — staff offered a high-level $35 million estimate.

To pay for those proposals staff outlined several options: extending or increasing the transportation benefit district (each 0.1% tax increment generates about $3.2 million annually), increasing the vehicle tab fee (the current $40 tab brings in about $1.2 million per year; raising it to $50 would add roughly $300,000), adjusting Economic Development Fund (EDF) thresholds to divert surplus sales-tax revenue to transportation, revising transportation impact fees, and re-targeting automated camera revenue for traffic safety projects where state law allows.

Mach cautioned that a 2024 state law limits how automated traffic-camera revenue can be used for jurisdictions that add cameras after that law took effect: new camera revenue must be used for traffic-safety projects and 25% is remitted to a state active-transportation account. Lynnwood currently operates cameras that predate the law and is exempt from that restriction, Mach said, but increasing camera coverage could change how the city must spend the proceeds. Staff estimated roughly 52,000 citations in 2025 and on the order of $6 million in annual camera-related revenue in that year, figures Mach presented as a planning estimate.

Council members pressed staff on alternatives and tradeoffs. Councilmember Lewyther asked whether roundabouts had been studied as a lower-maintenance alternative to signals; Mach said roundabouts often cost more to build but can be cheaper to maintain and are appropriate in some but not all locations. Council President Nick Coelho requested an in‑house vs. consultant cost comparison for a past project and asked staff to compile a decade of liability payouts to evaluate whether proactive sidewalk maintenance would reduce claims.

Several council members signaled openness to taking revenue measures to voters. “If we’re funding the things that make people safer, there’s a trade-off,” one council member said. Others raised equity concerns about car-tab increases and urged staff to study compliance/enforcement rates so fee increases do not disproportionately affect residents who already comply.

Staff recommended a two-step approach: Step 1 — secure the near-term operations package (~$1M) through a mix of a $10 vehicle-tab increase (to $50), targeted transfers from EDF or the general fund, and using camera revenue for traffic safety where legally permissible; Step 2 — pursue a voter-approved TBD sales-tax increase to fund a $35 million capital program of pedestrian and bicycle improvements over 10 years.

The council did not take immediate legislative action on June 22; members asked for more data, legal review, and a work session to refine option packages ahead of the budget process.