What is a Transportation Benefit District?
A Transportation Benefit District (TBD) is a designated area that raises revenue to acquire, construct, improve, provide, and fund transportation improvements.
What types of projects does a TBD fund?
TBD-funded improvements include traffic congestion relief, sidewalk connections and repairs, street and road maintenance, and multi-use pathways or trails. Revenue also can be used as matching funds to access larger grants.
How is a TBD funded?
State law allows voters to approve a sales tax increase up to 0.3% (three-tenths of one percent) to fund a TBD. The Lake Stevens City Council is asking voters for a sales tax increase of 0.2% (two-tenths of one percent) or two cents on a $10 purchase.
Do voters have to approve sales tax funding?
Yes, voters must approve any sales tax funding for a TBD by a simple majority.
Why is a TBD funded by sales tax?
Sales tax applies to both residents and visitors to Lake Stevens who come for shopping, dining, or recreation. Many people feel that sales tax is a fair way for visitors to contribute and maintain the sidewalks, streets, and trails they use, as well as traffic congestion relief projects.
Is there another way to fund a TBD?
Yes, a City Council can authorize a non-voted $20 vehicle licensing fee. There is not support on the Lake Stevens City Council currently for this funding method.
How much will it raise for transportation projects in Lake Stevens?
The TBD is expected to raise $1.5 million a year for transportation projects in our community.
What projects will be funded?
The City surveyed residents earlier this year. Projects in order of priority are:
- Sidewalk connections to schools and neighborhoods;
- Improved street maintenance for high-volume roads to help relieve traffic congestion; and
- Multi-use pathways for recreation purposes.
What other cities have a TBD?
There are 11 cities in Snohomish County with TBDs: Arlington, Edmonds, Everett, Granite Falls, Lynnwood, Marysville, Monroe, Mountlake Terrace, Mukilteo, Snohomish, and Stanwood.
How many cities fund a TBD with a sales tax increase?
Seven cities fund their TBDs with a voter-approved sales tax increase: Arlington, Lynnwood, Marysville, Monroe, Mukilteo, Snohomish, and Stanwood.
How will our sales tax rate compare to those cities?
The City’s sales tax rate would be less than or the same as these cities.
Who can I contact for more information?
City Administrator Gene Brazel welcomes your questions at (425) 622-9414 or gbrazel@lakestevenswa.gov. Thank you for considering our request!