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Council debates raising car-tab fee as staff outline options to shore up neighborhood-streets fund
Summary
City staff asked the council to consider a $20 increase to the Transportation Benefit District car-tab fee (from $20 toward a higher total) to sustain neighborhood streets work; councilmembers discussed alternatives including sales tax, bonds, exemptions, and packaging the measure with a public-safety sales-tax conversation.
City finance and public-works staff reviewed the Transportation Benefit District (TBD) structure and the statutory options for car-tab and sales-tax revenue and asked the council to consider a councilmanic increase to the car-tab fee to sustain the neighborhood-streets program.
Staff explained that the existing TBD includes a $20 car-tab fee and a 0.1% sales-tax contribution and that state law allows councilmanic increases (to defined levels after minimum durations) or higher amounts with voter approval. One staff presenter said the city initially estimated roughly $90,000 in revenue when the TBD was created and that actual collections are closer to $200,000 a year from car-tabs; staff noted the legislative allowance to raise the fee up to $40 after 24 months and higher amounts with voter action.
Council members raised concerns about regressiveness and the fairness of a flat fee, suggested packaging discussions with a potential public-safety sales-tax so the TBD sales-tax could be refocused entirely on streets, and asked staff for a holistic revenue analysis that would compare car-tab increases, sales-tax approaches, property tax options and bond measures. Council members also asked staff to model the distributional impact on residents and the timing for implementation and collections.
No final decision was made; staff were asked to return with additional analysis and to coordinate with finance and public safety on an integrated revenue strategy before taking an ordinance to adoption.
