by Richard Uhlhorn
Transportation Benefit Districts:
The City of Chelan held a workshop on February 6, to educate its new council members on TBDs (Transportation Benefit Districts).
The City is considering going to the voters to form a TBD and increase its sales tax by 0.3% which would raise additional funds for its transportation improvements such as roads, sidewalk construction, maintenance, and operations. These funds can not be used for non-transportation purposes.
Once established and the City Council assumes board responsibilities, they can vote to either charge a local vehicle licensing fee or establish a local councilmatic sales tax of 0.1% (non-voter approved) or up to 0.3% by voter approval.
The council had an active discussion on the issue.
Mayor Erin McCardle began the discussion asking how the Council gets through the required public information piece of the ballot measure.
Community Development Director John Ajax stated that the large influx of tourists contribute the most money to sales taxes. “All of them go shopping in Chelan,” said Ajax.
Councilman Tim Hollingsworth said, “I fully believe we should go to the voters.” He wanted to make sure the entire council was on board with that request. Councilman Mark Ericks agreed that the City should go for the 0.3% sales tax increase.
Ajax reiterated, “We are asking people to implement a sales tax increase.”
Councilman Bob Goedde remarked that there is a benefit of what the tax increase does.
The schedule towards the ballot measure follows:
- 2/24/24 – Recruitment of “For” and “Against” Committees
- Development of a talent bank application
- Develop clear committee responsibilities and timelines by 3/2/24
- 4/8/24 – Advertise opening of committees and solicit engagement from community
- 5/14/24 – Appoint members of each committee
From that point the City will launch a project website: a FAQ, Information, Outreach Calendar and then execute the outreach calendar by April 8. Along with monitoring the community’s concerns and misconceptions, the website will be updated to address those issues by April 8.
On June 24 through August 1, the committee will evaluate public support for the Council to vote on which direction the City will go.
By September there will be an Outreach Push to the community up to election day on November 4.
GENERAL TBD INFORMATION:
As of December 2022 there were 111 established TBDs in Washington; 34 of which are located in eastern Washington; 15 implemented a 0.2% voter approved sales tax. The State Legislature approved TBD sales tax authority from 0.2% to 0.3% with renewals of up to 10 years with voter approval.
All Things Lake Chelan 