Executive/Council Action Form (ECAF)
ITEM TITLE:
Title
Ordinance 26-031, relating to the Snohomish County Transportation Benefit District; imposing a sales tax for financing transportation improvements, creating a Transportation Benefit District Fund, and amending Chapter 2.85 SCC
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DEPARTMENT: Council
ORIGINATOR: CM Low; Council Staff Deb Bell
EXECUTIVE RECOMMENDATION: Click or tap here to enter text.
PURPOSE: Amending Snohomish County Code Section 2.85, to impose a 10-year 0.1% sales and use tax for county roadway improvements.
BACKGROUND: In 2015, the Washington State Legislature enacted RCW 36.74.010, which permits counties by ordinance to assume the rights, powers, functions and obligations of a TBD, thereby consolidating its operations under the county’s direct governance. Snohomish County established a TBD in 2011 as a separate governing body to provide funding for transportation projects in unincorporated Snohomish County. However, a funding mechanism for transportation improvements was not included in the original ordinance. State law gives TBDs access to a number of funding sources, one of which is the sales and use tax. TBDs have access to a total of 0.3% increased sales tax, of which 0.1% can be imposed by the TBD Board and 0.2% requires a popular vote after approval by the TBD.
FISCAL IMPLICATIONS:
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EXPEND: FUND, AGY, ORG, ACTY, OBJ, AU |
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REVENUE: FUND, AGY, ORG, REV, SOURCE |
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2ND YR |
1ST 6 YRS |
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DEPARTMENT FISCAL IMPACT NOTES: Snohomish County Public Works has made significant cuts and project delays to address the ongoing structural budget deficit. This deficit is due to a number of factors, including inflation, increased mandates, and declining revenue. The CPI for labor, materials, equipment, and services is up 39% in the last 4 years. The change in mandates, such as NPDES, fish passage, increased permitting times and asset costs has added unforeseen costs, and declining gas tax revenue has been exacerated with the road levy capped at 1% annually has created this deficit.
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OTHER DEPARTMENTAL REVIEW/COMMENTS: Click or tap here to enter text.