Comment on New Transportation Taxes for Bellevue

The City is holding a public hearing on July 10 on the formation of the Transportation Benefit District.

  1. Should the City Council to approve a new way to fund some transportation costs by creating a Transportation Benefit District?
  2. Which options should they use for funding?
  3. Should they choose options that require a vote of the people?

The Transportation Department’s proposal creates a Transportation Benefit District and asks for 0.1% increase in the City sales tax rate (0.95 to 1.05). This creates a dedicated funding source to support maintenance of existing and new transportation projects. Transportation staff say the deferred maintenance need for 2024 is $3 million The proposed tax increase would generate $10 million per year.

Public Hearing

City Council Meeting

Monday, July 10 – 6:00 pm

Bellevue City Hall

Register to speak starting at 5:00 pm the day of the meeting.

To speak virtually via Zoom using Webinar ID: 981 6779 1723, Passcode: 137192

or

Send in written comments to Council@bellevuewa.gov; clong@bellevuewa.gov

and cc board@bridletrailscommunity.org

Watch on Youtube

Get City Council Agenda

Graph provided by Kemper Development Company

Why create a tax benefit district?

Dedicated funding: TBDs ensures that Council does not use this revenue for something else.

Flexibility in revenue options: TBDs have the flexibility to choose from a range of revenue options, such as sales taxes, vehicle license fees, or property taxes.

Enhanced transportation infrastructure: By generating additional revenue, TBDs can finance transportation projects that might otherwise get funded.

Why not?

Additional financial burden: TBDs are an additional tax.

Potential greater impact on the low income residents: if using sales taxes, the tax could to affect low-income households more significantly since they allocate a larger portion of their income to consumption.

Lack of accountability: TBDs operate independently, and could be designed to that the decisions madedo not align with the priorities of the broader community.

Tax Increases

Bellevue voters and taxpayers already approved the Transportation levy in 2016, which funded a specific list of projects. Unlike the levy, however, the new proposal is not targeted on what exact projects revenue would fund.

 

Other recent tax increases have been

Text Link

2016 Proposition No. 2 Levy for Neighborhood Safety, Connectivity, and Congestion The Bellevue City Council adopted Ordinance No. 6304 concerning a proposition to fund transportation neighborhood safety, connectivity and congestion improvements. To improve neighborhood safety, reduce neighborhood congestion, install sidewalk, trail and bicycle facilities, provide safe routes to connect people to schools, parks, transit and other services, and enhance maintenance and technology, this proposition would increase the City’s regular property tax levy by $0.150 to a total authorized rate of $1.280 (if only this proposition passes) per $1,000 of assessed value for collection in 2017 and for 19 years thereafter as allowed by chapter 84.55 RCW. Should this proposition be:

Approved

Rejected

What funding options should Council choose for the Transportation Benefits Districts?

Council Approved Options

• Sales or use tax up to 0.1%

• Annual vehicle license fee up to $50

• Fee or charge associated with commercial construction or land development

• Vehicle toll on city streets (also requires state tolling authority approval)

Voter Approved

• Sales or use tax up to 0.3% •

Annual vehicle fee up to $100

• “Ad valorem” property tax

See City Webpage

Transportation Benefit District

What can a Transportation Benefit District fund?

“Transportation improvement” means a project contained in the transportation plan of the state, a regional transportation planning organization, city, county, or eligible jurisdiction as identified in RCW  36.73.020 (2). A project may include investment in new or existing highways of statewide significance, principal arterials of regional significance, high capacity transportation, public transportation, and other transportation projects and programs of regional or statewide significance including transportation demand management. Projects may also include the operation, preservation, and maintenance of these facilities or programs.

  1. Road and bridge improvements: TBD funds can be used for constructing, maintaining, or repairing roads, highways, bridges, and related infrastructure. This may include expanding lanes, resurfacing roads, adding turn lanes, or improving intersections to reduce congestion and enhance safety.
  2. Public transit enhancements: TBD funds can be allocated to improve public transit services, such as increasing bus frequency, expanding routes, enhancing transit stops or stations, and supporting the implementation of new technologies for better transit operations.
  3. Bicycle and pedestrian infrastructure: TBD funds can be used to develop or improve infrastructure for bicyclists and pedestrians. This may include constructing bike lanes, sidewalks, multi-use paths, pedestrian bridges, or installing bike racks and other amenities to encourage active transportation.
  4. Transportation safety initiatives: TBD funds can be allocated to enhance transportation safety measures, such as installing traffic signals, improving street lighting, implementing traffic calming measures, or enhancing crosswalks and pedestrian safety features.
  5. Transportation planning and studies: TBD funds can be utilized for conducting transportation studies, traffic analysis, feasibility studies for new projects, and long-term transportation planning to inform future improvements and decision-making.
  6. Vehicle fleet upgrades: TBD funds can be used to upgrade or expand the local government’s vehicle fleet, including purchasing new vehicles or equipment for transportation agencies responsible for road maintenance, snow removal, or other related services.
  7. Intelligent Transportation Systems (ITS): TBD funds can be allocated to implement ITS technologies, such as traffic management systems, variable message signs, traffic monitoring cameras, or other systems aimed at improving traffic flow and traveler information.

Learn More…

Some of the related statutes

Background materials