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Recommendations <br />When comparing total available revenues for transportation with expected costs over the 20 -year study <br />period, revenues fall short of paying for even the current estimated operating costs, before considering <br />policy changes that would increase those operating costs. This makes sense when considering that <br />revenues have been declining while costs are increasing. There are two main types of strategies that can <br />be used to balance this implementation plan: <br />Increase revenue, through increases in existing funding tools or implementation of new funding or <br />financing tools. <br />Decrease expenses, by decreasing level -of -service or further prioritizing capital projects. <br />Decreasing current expenses is not likely to yield large gains, as the County has already <br />implemented this strategy where possible. <br />Funding and financing strategies should fund capital investments that are currently needed, as well as <br />help the County to plan to sustainably fund future capital needs. <br />RECOMMENDED STRATEGY FOR BALANCING OPERATING AND CAPITAL <br />REVENUES AND COSTS <br />To address the $91 million funding gap in operating and capital revenues over the 20 -year planning <br />period, we worked with County staff to prioritize funding strategies. Each of these options has its own <br />challenges, and there is no easy solution to balancing revenues and needs. BERK's recommended funding <br />option is for the County to pursue a Transportation Benefit District (TBD) and then establish a Vehicle <br />Licensing Fee, in combination with a County Road property tax levy lid lift. Revenues generated from <br />these two sources can be used to cover operating and/or capital costs. <br />Recommended Option <br />Is Transportation Benefit District — Vehicle Licensing Fee (Non -Voted) <br />Independent taxing districts created through ordinance can impose a vehicle fee, without voter <br />approval, of up to $20. If a $20 fee has been in effect for at least 24 months, then a vehicle <br />fee up to $40 can be imposed; if a $40 fee has been in effect for at least 24 months, then a <br />$50 vehicle fee can be imposed. Vehicle license fees can be up to $100 with voter approval. <br />Two ordinances are required to establish a Vehicle Licensing Fee, first a Transportation Benefit <br />District (TBD) and then a Vehicle Licensing Fee itself. Currently, over 100 cities have established <br />TBDs; the City of Kittitas is a TBD with a $20 Vehicle Licensing Fee. The County could potentially <br />set a fee aligned with the City of Kittitas. Five counties have established a TBD: King, Pierce, <br />Points Roberts (formed by Whatcom County), Snohomish, and Thurston County. <br />According to Washington State Department of Licensing (DOL) data, there are 27,549 vehicles <br />registered in the unincorporated County. This is based on the number of vehicles with an <br />expiration day between February 1, 2018, and January 31, 2019, in unincorporated County <br />areas. The DOL collects 1 percent of revenue generated from a Vehicle Licensing Fee. The fee <br />can be collected 6 months after it is approved, and the County must notify DOL once the fee has <br />been approved so that the fee can be included in vehicle renewal notices. <br />I1 May 22, 201 B Kittitas County Public Works 120 -Year TIP Fiscal Sustainabilify Strategy: Final Report 17 <br />