HomeMy WebLinkAboutTIS 2025-03-24 Item 1A - Discussion - Creation of Transportation Benefit DistrictCity of Tukwila
Thomas McLeod, Mayor
INFORMATIONAL MEMORANDUM
TO: Transportation & Infrastructure Services Committee
FROM: Marty Wine, City Administrator
CC: Mayor Thomas McLeod
Aaron BeMiller, Finance Director
DATE: March 17, 2025
SUBJECT: Transportation Benefit District as a revenue option
ISSUE
Briefing about potential for creation of a Transportation Benefit District by a student team from
the UW Evans School. (Clare Collins, Jacquelyn Liu, Lucca Howard, Pieter Quinton)
BACKGROUND
One option that the City could consider for increasing or supplementing future city revenues
would be the creation of a Transportation Benefit District. This source provides for dedicated
transportation revenue (which, if enacted, could allow revenues from the General Fund currently
used for transportation services to be freed up to be used for other General Fund services or
purposes). As a project for the Public Policy - Local Government Management class, four
students have teamed up to analyze the potential of creating a Transportation Benefit District for
Tukwila, and will present their research and findings to the committee.
DISCUSSION
During 2025-26 budget adoption, the City Council requested a review of options to increase city
revenues. The adopted budget included a proviso: "Throughout the rigorous biennial budget
process, it has become clear that the City cannot depend exclusively on cost-cutting measures
to address future budget deficits. To ensure long-term financial stability, it will be imperative to
identify new revenue sources and strengthen existing revenue streams. The City Council has
directed the Finance Department to return midyear to present and discuss potential additional
revenue options." The Administration anticipates providing a report to respond to this proviso
more fully in July, 2025. New or expanded revenue sources that would reduce reliance on the
General Fund for city services could be considered for implementation. This report provides
ideas for next steps, depending on the approach to implementation.
FINANCIAL IMPACT
The report estimates the potential revenue that could be generated if the TBD was created. This
is an additional source that could be used for transportation (including traffic and transit)
programs and projects.
RECOMMENDATION
Discussion only. Council is asked to consider the idea of creating a Transportation Benefit
District as one potential revenue source, and include this concept as part of its broader
consideration of revenue sources later in 2025, when the revenue proviso report is presented.
ATTACHMENTS
Team Report & Memorandum
Powerpoint presentation (available at Committee meeting)
1
Transportation
Benefit District
Analysis
Jacquelyn Liu - Pieter Quinton -
Lucca Howard - Clare Collins -
City Overview
TBD Definitions
Geographic 1:Daly
Funding Methods
Funding Proceeds
ption Analysis
commendation
ontents
Tukwila
• 21,135 residents
• More diverse in terms of race and
languages spoken compared to the rest
of King County.
• Major retail destination: Westfield
Southcenter Mall
Why:
• Connect Revenue and Expenditures
• � Relieve pressure off of the General Fund
• Improve vital roads and public transit
How:
• 10-Day Notice and Legislative Action
• Further action to create taxes or tabs
• Reinstated every 10 years
What:
• "Transportation projects and programs of
regional or statewide significance"
• Within set borders
Where:
• Match Tukwila city lines
• Smaller borders within city
• Combine with neighboring TBD
a TB,
5
Geographic Analysis
Recommendation: Matching Tukwila city lines
Boundaries determine revenue sources
Boundaries also determine location of spending
Smaller than city line does not match intent
Merging borders forgos control
All surrounding cities (except Sea-Tac) have TBDs
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Tukwila
TBD Spending
Items TBD Would Fund
All projects included on map -
Maintenance for roads a bridges -
Operational budget for traffic lights -
Transportation demand management projects -
Without funding increases, TIP cannot complete -
Map of TIP improvements
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SeaTac
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Tukwila has highest Sound
Transit investment per capita
Public transportation projects
with good density, walkability
Safer streets, New development,
Increased property tax revenues,
connected neighborhoods, healthier
Major transit projects in communities 8
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At 0.1%: $2.3M,
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At 0.3%: $7M/'
$45M over 5 years.-_ r
Per car owner tax
Will affect businesses that
process car tabs 00-00.1.4
Will only tax tukwila residents
Sales Tax .
Dependant on sales traffic
from Southcenter mall
- Large portion of revenue will
�a; not come from Tukwila*_
residents AM"
"
Options
Estimated
Annual
Revenue
Current
Understanding
of Legal
Authority
Estimated
Administrative
Complexity
Estimated
Time to
Implement
Estimated
Political
Complexity
.Enact an additional
0.1% sales tax through
council action
$2,344,788
Clear
Low
Less than 1
year
Low
Enact an additional
0.3% sales tax
through ballot
measure
$7,034,640
Clear
Low
1- 2 years
Medium
Enact a $20 vehicle
license fee through
council action
$360,000
Clear
Medium
Less than 1
year
High
Enact a $40 vehicle
license fee through
council action
$720,000
Clear
Medium
Less than 1
year
High
13
Options laid out and
recommendation
1. Enact a 0.1% sales tax increase through council
action. (Recommended)
2. Enact a 0.3% sales tax increase through ballot
measure. (Recommended for Maximizing Revenue)
3. Enact a $20 vehicle license fee increase through
council action.
4. Enact a $40 vehicle license fee increase through
council action.
14
Next Steps
1. Conduct a workshop of ideas, if more information is
needed
2. Decide whether to create a TBD and decide on a
preferred revenue stream, either:
a. All in one decision OR
b. Vote to create a TBD now and identify a revenue
stream later
3. Determine whether the city goal is to maximize funding
through public votes to support the TIP goals or to do
as much as possible through a councilmanic option.
4. Either bring one of the councilmanic options to the
Council for review or submit a resolution to the county
auditor calling for a special election
15
1
City of Tukwila
MEMORANDUM
TO: Administrator Marty Wine
FROM: Clare Collins, Jacquelyn Liu, Lucca Howard, Pieter Quinton
DATE: March 6, 2025
SUBJECT: Transportation Benefit District (TBD)
EXECUTIVE SUMMARY
The City of Tukwila is looking for a targeted, sustainable revenue stream that can be used to
fund transportation specific projects within the City. TBDs are used throughout the State of
Washington as a funding source for transportation improvements. Currently 125 cities across
Washington use TBDs including almost all the cities directly bordering Tukwila. TBDs can
generate revenue from sales taxes and vehicle license fees. TBD revenue over a certain rate
requires ballot measure approval, otherwise they can be formed by a council vote. The table
below highlights four possible options for forming a TBD as well as their respective tradeoffs.
Options
Estimated
Annual
Revenue
Current
Understanding
of Legal
Authority
Estimated
Administrative
Complexity
Estimated
Time to
Implement
Estimated
Political
Complexity
1. Enact an
additional 0.1%
sales tax through
council action
$2,344,788
Clear
Low
Less than 1
year
Low
2. Enact an
additional 0.3%
sales tax through
ballot measure
$7,034,640
Clear
Low
1- 2 years
Medium
3. Enact a $20
vehicle license fee
through council
action
$360,000
Clear
Medium
Less than 1
year
High
16
2
4. Enact a $40
vehicle license fee
through council
action
$720,000
Clear
Medium
Less than 1
year
High
This report recommends the Council implement a 0.1% councilmanic sales tax. Given Tukwila's
commercial hub at Southcenter Mall, a sales tax increase is a better option for Tukwila's
community than vehicle tabs because a large portion of the revenue generated will not be paid
by Tukwila residents. Additionally, the neighboring cities of Renton, Auburn, and Seattle all have
at least a 0.1% sales tax for their TBDs so Tukwila's businesses wouldn't be at a competitive
disadvantage if it enacts a 0.1% sales tax funded TBD. The TBD funding will generate important
revenue to support funding Tukwila's highest priority transit investments that currently do not
have funding, and bring in private investment around large WSDOT, Sound Transit, and King
County projects. Should the Council favor larger revenue streams than provided by the 0.1%
sales tax, this report recommends considering a 0.3% sales tax via ballot measure. Some of the
increases in cost from the sales tax would be offset by the scale of private investment that
would come from investing in infrastructure around station areas.
BACKGROUND
Tukwila is a city of about 21,135 residents, according to US Census Bureau estimates.' It is
located in the western part of King County, south of Seattle, between SeaTac and Burien to the
west and Renton to the east.2 The City lies along the Duwamish and Green River and Interstate
5.3 Tukwila has a population density of 2,373 residents per square mile, which is comparable to
the neighboring city of SeaTac. However, it is much less dense compared to other nearby cities
1 "US Census Bureau Quick Facts: Tukwila city, Washington," United States Census Bureau, July 1, 2023,
https://www.census.gov/quickfacts/fact/table/tukwilacitywashi ngton/PST045223#PST045223.
2 "City Maps," City of Tukwila, accessed February 23, 2025,
https://www.tukwilawa.gov/departments/community-development/city-maps/.
3 "City Maps"
17
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like Seattle, Burien, and Renton.486' Part of the reason Tukwila is less dense compared to its
neighbors is the Westfield Southcenter Mall, which employs over 43,000 people, a significant
job base for a city the size of Tukwila.8 Tukwila is more diverse in terms of race and languages
spoken compared to the rest of King County.9 Due to the Westfield Southcenter Mall, as well as
Tukwila's proximity to Seattle -Tacoma International Airport, Tukwila is a major regional retail
destination. The City has well-connected transportation options, with multiple bus routes, light
rail stations, and access to major highways like Interstate 5 and 405.
CURRENT STATUS
Tukwila has proposed total budget expenditures for 2025 of $163,747,027.1° That is offset by
projected revenue (resources) of $157,560,372. As such, the City is projecting a modest budget
deficit which can be offset by fund reserves. Presently, transportation related expenditures fall
under the general fund obligations. The Public Works Department has a proposed budget of
$9,738,964 for 2025. Within the proposed Public Works budget, $4,761,271 has been
earmarked for "Street Maintenance".11 The City has targeted several transportation related
indicators of success, including:12
- Continue improvements for the Traffic Calming/Residential Safety Program
- Complete 100% design of the 42nd Ave S Bridge Replacement Project
- Begin construction of Boeing Access Road Bridge Replacement Project
4 "US Census Bureau Quick Facts: Seattle city, Washington," United States Census Bureau, July 1, 2024,
https://www.census.gov/quickfacts/fact/table/tukwilacitywashi ngton/PST045223#PST045223.
5 "US Census Bureau Quick Facts: Burien city, Washington," United States Census Bureau, July 1, 2024,
https://www.census.gov/quickfacts/fact/table/tukwilacitywashi ngton/PST045223#PST045223.
6 "US Census Bureau Quick Facts: Renton city, Washington," United States Census Bureau, July 1, 2024,
https://www.census.gov/quickfacts/fact/table/tukwilacitywashi ngton/PST045223#PST045223.
' "US Census Bureau Quick Facts: SeaTac city, Washington," United States Census Bureau, July 1, 2024,
https://www.census.gov/quickfacts/fact/table/tukwilacitywashi ngton/PST045223#PST045223.
8 "City of Tukwila Community Profile and Peer Benchmarking," City of Tukwila, December 1, 2023,
https://www.tukwilawa.gov/wp-content/uploads/Tukwila-Community-Profile-and-Peer-Benchmarking-Summary-R
evised.pdf.
9 "Tukwila," Puget Sound Regional Council, 2013,
https://www.psrc.org/sites/default/files/2022-03/rgc-profile-tu kwila.pdf
10 "2025-2026 Biennial Budget." City of Tukwila, www.tukwilawa.gov/wp-content/uploads/FIN-Current-Budget.pdf.
11 "2025-26 Preliminary Proposed Biennial Budget - Public Works." City of Tukwila,
www.tukwilawa.gov/wp-content/uploads/Tab-10-PW.pdf. Accessed 26 Feb. 2025.
12 "2025-26 Preliminary Proposed Biennial Budget - Public Works" City of Tukwila
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4
- Begin construction of S 152nd Pedestrian Improvements
The Traffic Calming/Residential Safety Program, or Neighborhood Traffic Calming Program
(NTCP) as it's commonly referred to as, is a way for the City to improve the livability of its
neighborhoods by regulating car speeds and traffic on the roads.13 The NTCP was created by
Council in 2018, and resulted in improvements at several key intersections in the Allentown
Neighborhood.14 Looking ahead, the City has created its key Transportation Improvement Plan
(TIP) which outlines priority projects and their respective cost schedules. The TIP has a
projected cost of $65,632,000 spread over five years, 2024-2029.15 Those costs are largely front
loaded, with over $50 million coming in the first three years of the plan. City staff anticipate
needing to secure an additional $17,955,000 in City funding to cover the projected costs over
the duration of the plan.16 The full TIP can be found in Appendix 1 of this report. Given the
current budget constraints, the City will need to secure additional or financing to complete all
the items on its TIP on schedule.
Despite budget constraints, Tukwila is in a particularly advantageous position to invest in
transportation improvements. There are three major capital projects planned in Tukwila. The
Boeing Access road infill station for the light rail, the Stride station, and pedestrian bridge near
the existing light rail station.17 RapidRide also named route 150 bus as the highest priority BRT
project going into the future.18 Tukwila is uniquely positioned to capitalize on these major public
works through transportation improvement projects. For every $1 spent on these
transportation projects, cities can receive around $5 in private investment.19 Due to the high
density of these major capital projects in Tukwila, this figure could be higher. Investing in
13 "Neighborhood Traffic Calming Program." City of Tukwila, 13 Nov. 2023,
www.tukwilawa.gov/departments/public-works/construction-projects-and-transportation-impacts/neighborhood-t
raffic-calming-program/
14 "Neighborhood Traffic Calming Program" City of Tukwila
15 "Transportation Improvement Plan." City of Tukwila.
16 "Transportation Improvement Plan." City of Tukwila.
17 Sound Transit, Sound Transit future services, January 2025
https://www.soundtransit.org/sites/default/files/documents/st-future-service-map.pdf
18 Lin, Wesley. "Rapidride Future and Prioritization." Seattle Transit Blog, 23 July 2024,
seattletransitblog.com/2024/07/23/rapidride-future-and-prioritization/
19"Transit Benefits." Public Transportation www.publictransportation.org/transit-benefits/grows-communities
19
5
transportation improvements around new stations will yield private investment, especially while
there is still excitement surrounding them, which provides a plethora of benefits to Tukwila.
As discussed, money for the transportation improvement projects is currently coming out of the
general fund. While this is not necessarily a problem, and to fund the Transportation
Improvement Plan fully money will need to continue to come out of the general fund, it is not
ideal. General fund expenses can vary, and if there is a crisis, this may lead to transportation
improvements being cut. Tukwila is also facing a budget shortfall. One solution is to create a
funding source for transportation separate from the general fund. Having a stand alone funding
source for transportation would allow for a greater amount of flexibility when apportioning
general budget funds to transportation, which could mean more funding for key services when
budgets are tight. There is precedent for this move, since utilities and garbage services in
Tukwila also have dedicated revenue streams, taking funding for those services out of the
general fund.20
TRANSPORT BENEFIT DISTRICT OVERVIEW
In its simplest definition, a Transportation Benefit District (TBD) is a governmental organization
that can be created with the purpose of collecting funds which can only be used for the purpose
of transportation improvements —it is a nexus to connect revenue and expenditure streams.
The scope of these improvements are limited within the district's lines, but may be applied to
"transportation projects and programs of regional or statewide significance" including but not
limited to highways and arterial roads, public transportation, and high capacity transportation.
The creation of the Transportation Benefit District involves legislative action with a proper,
10-day notice to the public. Further modifications or the discontinuation of the TBD involve a
similar process. The creation of the TBD requires specifying the geographic boundaries of the
TBD covers and the activities to be funded. This action does not itself include the creation of
20 "Revenue & Tax Information." City of Tukwila, 3 Mar. 2025,
www.tukwilawa.govideoartments/finance/revenue-taxes/.
20
6
taxes or fees. TBDs are created without an innate duration; although sales taxes, one of the
primary forms of funding a TBD uses, can only be set for a duration of 10 years or less. 21
While many TBDs share the same boundaries as the county or city that forms them, they can be
created with smaller or larger borders. If the borders of the TBD are that of the establishing
local government, then the acting legislature serves as the independent legislature of the TBD.
In order to create a TBD across city or county lines, an interlocal agreement must be made and
the governing board must be made up of either 5 members of which at least 1 is from each
jurisdiction or the governing body of a metropolitan planning organization with the same
boundaries. In either case, a TBD is not permitted to serve a population greater than 1.5 million
individuals. 22
GEOGRAPHIC SCOPE
The geographical boundaries of the TBD must be outlined when it is established. Most TBDs are
formed with the same borders as the county or city that establishes it.23 While there are
alternatives available, many pose individual challenges. The border determines the zone from
where funding can be sourced and spent. The boundaries can be made smaller than city limits
when establishing the TBD. However, in order to create a TBD that extends beyond city lines, an
interlocal government agreement must be reached. The governing body of a TBD that
encompasses multiple cities must include a council that includes elected legislative officials
from all municipalities included in the TBD.
There is no significant advantage in Tukwila creating a TBD larger than its municipal borders. All
cities bordering Tukwila have their own existing TBDs. If Tukwila were to want to join forces,
neighboring cities would have to modify their TBD borders to include Tukwila. Furthermore, a
shared TBD would concede some control from each party and would place a greater emphasis
on shared projects.
21 Washington State Legislature, Revised Code of Washington, Title 36 Counties, Chapter 73 Transportation Benefit
Districts, last updated December 2024,
https://a pp.leg.wa.gov/rcw/defa u lt.aspx?cite=36.73&full=true#36.73.030
22 Revised Code of Washington Chapter 36.73
23 "Transportation Benefit Districts (TBDs)"
21
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FORMATION OPTIONS
A city may establish a Transportation Benefit District (TBD) after holding a public hearing, if it
decides that it will serve the public interest.24 There are two main ways of forming a TBD:
❖ Council vote - A council vote is generally a quicker method of forming a TBD. However, a
council vote can only raise sales tax by 0.1%.25 If the council wishes to raise the sales tax
by more than 0.1%, it must use a ballot measure to do so.26 Another TBD funding source,
vehicle license fees, can be imposed up to $50 by a council vote.27
❖ Ballot measure - In recent years, voters have approved nearly all proposed TBD sales and
use taxes.28 A ballot measure can authorize a vehicle license fee of up to $100 or a sales
tax of up to 0.3%.29
CASE STUDIES
Across Washington since the enactment of the law permitting TBDs, 125 municipalities have
enacted some form of TBD.30 Most major cities in the state have a TBD, the largest without one
is Bellevue. A majority of municipalities that have enacted a TBD use sales taxes. 82 have a sales
tax, and out of those that have a sales tax, a majority have a rate of 0.1%. Seven cities have the
highest sales tax rate of 0.3%. Out of the 125 state TBDs, 54 use car tabs. Of those, the vast
majority use a rate of $20, with some using the highest councilmanic rate of $40. The highest
vehicle tab rate used was $60 between 2014 and 2020 in Seattle, however that rate was
allowed to expire. No other city has tried to implement a car tab rate over $40.31 The table
below summarizes the distribution of how cities in Washington have funded their TBDs.
24 "Transportation Benefit Districts (TBDs)," Municipal Research and Services Center of Washington, Accessed
February 23, 2025, https://mrsc.org/explore-topics/finance/revenues/transportation-benefit-districts
25 "Transportation Benefit Districts (TBDs)"
26 "Transportation Benefit Districts (TBDs)"
27 "Transportation Benefit Districts (TBDs)"
28 "Transportation Benefit Districts (TBDs)"
29 "Transportation Benefit Districts (TBDs)"
30 "Transportation Benefit Districts (TBDs)"
31 "Transportation Benefit Districts (TBDs)"
22
8
Only Sales Tax
Only Vehicle License
Fees
Both Sales Tax and
Vehicle License Fees
Number of Cities
66
38
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Tukwila borders the cities of Renton, Kent, Burien, Seatac, and Seattle. Auburn is also relevant
here due to similarities in government and location in the Duwamish River Valley. Of those
cities, Kent and Seatac do not have TBDs. Of the cities that do, Renton and Auburn have a 0.1%
sales tax, the maximum councilmanic sales tax. Burien also has a TBD, but it is funded with a
$20 car tab. Of the cities close to Tukwila, Seattle has the largest TBD with a $40 car tab and a
0.15% sales tax. Auburn has had a sales tax funded TBD since 2023, and is using the money to
fund a plethora of improvements to its downtown core. In general, the majority of cities
proximate to Tukwila have a TBD, some have adopted it recently, others have had it for a
number of years.
ANALYSIS, OPTIONS, AND RECOMMENDATIONS
This report is considering four possible pathways for Tukwila to create a TBD:
1. Enact a 0.1% sales tax increase through council action.
2. Enact a 0.3% sales tax increase through ballot measure.
3. Enact a $20 vehicle license fee increase through council action.
4. Enact a $40 vehicle license fee increase through council action.
In evaluating the options, this report analyzes the revenue generating capacity, community
support, and equity impact of each proposal.
REVENUE GENERATION
There are two feasible methods for Tukwila to generate TBD revenue: sales tax and vehicle tabs.
The City of Tukwila currently imposes an additional 1% sales tax on its residents. The sales tax is
anticipated to garner $23,447,886 in revenue in 2025.32 If Tukwila were to take a conservative
approach similar to Auburn and Renton and enact a 0.1% councilmanic sales tax, the 2025
32 "Budgets," City of Tukwila, Accessed March 6, 2025, https://www.tukwilawa.gov/departments/finance/budgets/
23
9
numbers project additional revenues of $2,344,788. The maximum possible sales tax for a TBD
is 0.3%, which can be accomplished via ballot measure. Extrapolating 2025 numbers again, this
would raise $7,034,364 per year. The other feasible method would be car tabs. Tukwila does not
have a vehicle tab, so Kenmore will be used as a stand in. Kenmore has only about two
thousand more residents than Tukwila, and the car ownership rate is also similar33, so it is
reasonable to assume a similar projection for vehicle fees between the two cities. Kenmore's
2025-26 budget projects revenue of $1,434,336 at a car tab rate of $40.34 So if the city of
Tukwila were to adopt a $40 fee, the maximum councilmanic fee, it should expect roughly
similar income over a two year period, or half that number per year. Another option would be
to adopt a $20 fee like Burien. The revenue from the $20 fee in 2025 is expected to be
$764,000.35 Burien has roughly twice the population of Tukwila, so Tukwila could expect half
that number per year from a $20 vehicle tab. The projected revenues of each of the five
proposals are summarized in the table below. As the data illustrates, increasing the sales tax,
even 0.1%, will generate considerably more revenue than all of the vehicle license fee increases.
Option
Projected Annual Revenue
1.
Enact a 0.1% sales tax increase
through council action
$2,344,788
2.
Enact a 0.3% sales tax increase
through ballot measure.
$7,034,364
3.
Enact a $20 vehicle license fee
increase through council action.
$360,000
4.
Enact a $40 vehicle license fee
increase through council action.
$720,000
COMMUNITY SUPPORT
'Kenmore, WA." Data USA, datausa.io/profile/geo/kenmore-wa
34 "Budget Documents." City of Kenmore,
www.kenmorewa.gov/government/departments/finance-administration/financial-accounting/budget-documents.
35 "Budget." City of Burien, www.burienwa.gov/city_hall/finance/budget.
24
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The feasibility of each option depends on the way the TBD is formed, councilmanic or by ballot
measure, and the size of either the sales tax or vehicle tab increase. Looking at neighboring
cities, both Renton and Auburn enacted TBDs with 0.1% sales tax increases by council vote.
Renton and Auburn are important guides for understanding the feasibility of such an action in
Tukwila because they, like Tukwila, have Mayor -Council forms of government. Renton City
Council faced little public pushback when it enacted its TBD last year. In Auburn, the city council
initially adopted a $20 vehicle license fee increase but quickly suspended and then rescinded
that resolution before any fees were collected.36 Instead, Auburn opted to enact a 0.1% sales tax
increase.37 Vehicle tabs have generated pushback statewide. In 2021, the State Senate explored
the possibility of payment plans for vehicle license fees as a result of community frustration
over growing fees.38 As a result of anticipated community pushback, this report recommends
against utilizing vehicle license fees for funding a TBD.
In order for Tukwila to approve a greater than 0.1% sales tax increase, the TBD will need to be
created through a ballot measure. Tukwila residents have demonstrated a political willingness
to approve measures with the potential for cost increases. In the last decade, Tukwila residents
approved both the Public Safety Bond measure and the Regional Fire Authority. That being said,
ballot measures would require public campaigns and outreach that could incur costs and delay
the implementation of the TBD. Additionally, many jurisdictions avoid combining tax measures
on the ballot as voters may be less likely to approve them al1.39 Therefore, Tukwila would need
to be strategic in the timing of when the ballot measure was introduced, potentially delaying a
crucial funding stream even further. Looking at all these factors, councilmanic is the most
politically feasible way to form a TBD.
EQUITY IMPACT
36 "Transportation Benefit District." City of Auburn,
www.auburnwa.gov/city hall/public works/transportation/transportation benefit district
37 "Transportation Benefit District." City of Auburn
38 Scott, Hanna. "No Car Tab Relief in Washington but Workgroup Will Tackle Challenges." MyNorthwest.Com, 1 Apr.
2021, mynorthwest.com/local/car-tab-relief-washingtton-workgroup-tackle-challenges/2741168
39 "Local Government Ballot Measures," Municipal Research and Services Center of Washington,
https://mrsc.org/explore-topics/elections/propositions/ballot-measures
25
11
Progressive revenue is any funding source that graduates by income. A progressive tax is based
on the taxpayer's ability to pay, meaning a lower tax rate on low-income earners than on those
with a higher income40. Neither vehicle tabs nor sales taxes are progressive revenue. There are
equity considerations around enacting either of these taxes, since they equally target rich and
poor. However, considering the population of Tukwila, and comparing the volume of money
appropriated to the tax burden on residents, the more equitable option is a sales tax. Most
people that will be subject to a sales tax will be from outside of city limits. This is because a large
amount of the sales taxes collected come from Southcenter mall. A majority of Southcenter mall
customers come from outside of Tukwila. This means that residents of Tukwila will not be
paying the bulk of appropriated revenue.
NEXT STEPS
Included below are a few potential next steps for the City to take:
❖ If more information is needed by the council to make a decision, it may be advisable to
do a workshop of these ideas and to clarify what additional information is needed to
make a decision.
❖ If the council is in support of forming a TBD, it may be helpful to vote to create one now
and identify a revenue stream later. However, if the council is able to create a TBD and
decide on a preferred revenue stream, that would be the most logical approach, as they
only have to be involved in the decision once.
❖ To identify a revenue stream, determine:
➢ Whether to maximize funding through public votes to support the $17,955,000
the City expects to need for the TIP over the next five years, avoiding the use of
general funds, or to do as much as possible through a councilmanic option.
➢ Whether the council has a preference when it comes to car tabs versus sales tax.
❖ Once the council has identified their preferred TBD revenue sources, they can form a
TBD by:
40 Iranon, Kasey. "Why You Should Care about Progressive Revenue" YWCA Seattle I King I Snohomish, 26 Jan.
2022 www.ywcaworks.org/blogs/firesteel/wed-01262022-1228/why-you-should-care-about-progressive-revenue.
26
12
➢ Options 1, 3 and 4: Bringing one of these options to the Council for review and
action since the final decision is councilmanic. These instructions pertain to the
following three actions, including the recommended 0.1% sales tax:
■ Option 1 (recommended): Enact a 0.1% sales tax increase through
council action.
■ Option 3: Enact a $20 vehicle license fee increase through council action.
■ Option 4: Enact a $40 vehicle license fee increase through council action.
➢ Option 2: This is a voter approved option. For the ballot measure option listed
below, the city council must submit a resolution to the county auditor calling for
a special election and choose one of four special election dates to hold the ballot
measure.41 They must also submit the information included in the MRSC website
(cited) to the county auditor's office before the filing deadline.42 These
instructions pertain to the following action:
■ Option 2: Enact a 0.3% sales tax increase through ballot measure. This
option is recommended if the city would like to maximize revenue
streams to support the projected TIP costs.
'"Local Government Ballot Measures," Municipal Research and Services Center of Washington
42 "Local Government Ballot Measures," Municipal Research and Services Center of Washington
27
13
Appendix 1
DRAFT 2024 - 2029 TIP SUMMARY
2023-2028
DP 95eat
PROJECT TITLE
Project Costs in Thousands of Cellarw
Funding
Fedsrat
SOuneee
Unsecured
2024
2025
2025
2027
2025
2029
TOTAL
5tatteli'1I CitylLacal
Grant
City'
9
42rd Avenue S Bridge Replacement
900
15,637
13,303
0
0
0
30,03T
12,930
17,000
137
5
4519AveftueBale Rwlee la Schoat
510
2.070
0
0
0
2580
200
520
2P60
410
10
Alentoem Tnxis Renate Pn cied
600
0
0
0
0
0
OM
KO
14
ADA Improvernenis
30
SO
50
50
SO
50
300
300
250
20
APEf1,1+rt#er WI Matelot
0
144
1570
0
0
0
1,714
1,714
1,714
22
APEIYdud y Olive Intersection
0
85
657
0
0
0
742
742
742
13
Amaral0dge Irtspeolrorts aril
20S
21S
220
230
235
240
1,345
1,345
1,140
12
►anal Ovenayawl IR a+ Picgiw)
1,400
1,400
1,402
1,500
1400
1050
8,850
0.050
7,450
16
Amaral Traffic Steal Prcgan
130
130
130
150
160
160
840
840
710
25
E Margaret W ay 5 {BAR - S 1125 S1)
0
50
0
0
0
3,300
3,350
1.300
2.050
1300
2,050
-
Reefing Gout' Keg Cow*? 14p4-19 w1h TDM
210
105
0
0
0
0
315
315
6
Macadam Road 3 Conwle10 Streets Pod
SEC
3,100
0
0
0
0
3,600
3.250
350
3250
31X1
18
S 119n 51 Pedeaivan Bulge Parting
0
200
0
0
0
0
200
200
23
9133rd $YU 599 $outteu 7 Werse:A n
0
0
0
0
350
2070
2,420
2,420
2,420
21
S 1445, 5t Bridge Srdewales
0
0
579
2,690
0
0
3,209
2400
78
2,600
789
4
S 152td Street Safe Ratites to 5rnad
4,015
0
0
0
0
0
4,015
3,200
815
3200
-
Salmi KA,Cooty Rego -do 7UM
281
4
0
0
0
0
261
223
30
6
19
Soulhceale( Bled1691hAvenue 5 &mai
1,100
0
0
0
0
0
1,100
500
600
600
-
Tmrtepormson Demand Management Impleme
47
47
0
0
0
0
94
94
TOTAL.
9,928
23,233
18,105
4,520
2,285
7,460
65,632
15,623
27,749
22,260
12610
17,955
PROJECTS REVISED FROM 2023 -2028 71 P
New
AFEIYdumuy Drive Intersection
E Margfrtat W fry $ {BAR - $1120 $1 O
3133rd SY5R 5995ouS4x .id Ydereedicn
deletec4Ccntp feted
Green RAT( Tim {lobe ccr pteied 2023)
$ 140111$1 lattreStd.4.1 t110rwernea15
. U49 twed City lwid3 iridudesaA Binds.necessaryoulside of Macwre»1 biennial budpelcycle
niry 4. 2020
28
14
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