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Since the levy lid lift generates a relatively larger magnitude of additional revenue, the County
<br />could potentially add projects to its project list or use the slight surplus for unknown or
<br />emergency events. Political feasibility is a hurdle for this strategy; a levy lid lift requires voter
<br />approval, and property owners would bear the burden. It will be important to consider election
<br />timing, other votes on the election ballot, community attitudes, and political will in pursuing this
<br />option.
<br />Exhibit 16. Additional Revenue Generated from Transportation Benefit District Vehicle Licensing Fee and
<br />County Road Property Tax Levy Lid Lift (2018$)
<br />Sources: Kittitas County Public Works 2018; Washington State Department of Licensing 2018; BERK Consulting 201 S.
<br />Note: These figures are rounded to the nearest 10,000.
<br />Alternative Options
<br />■ Transportation Benefit District — Sales and Use Tax (Voted)
<br />13 Independent taxing districts created through ordinance can impose an additional sales and use
<br />tax of up to 0.2 percent. This would apply to unincorporated areas and could be aligned to
<br />sales and use taxes in cities. Currently, the City of Ellensburg is a TBD with a 0.2 percent sales
<br />tax. The tax must be reauthorized by voters after 10 years.
<br />° A Sales and Use Tax levied through a TBD could bring in approximately $719,000 annually,
<br />based on the unincorporated County's 2016 taxable retail sales data from Washington State's
<br />Department of Revenue. Based on population projections, this is approximately $18.2 million
<br />over the 20 -year period. This option would need to be combined with another option.
<br />This option would help to align costs with beneficiaries, since the sales and use tax would apply
<br />to recreational users passing though the county. The County could frame this approach as
<br />aligning with the City of Ellensburg. This option would only partially cover the funding gap, and
<br />it could be more susceptible to market volatility, since taxes collected depend on commercial
<br />use.
<br />Potential additional revenue from each of these three tools is summarized in Exhibit 17 below.
<br />r�'j May 22, 201 B Kittitas County Public Works 1 20 -Year TIP Fiscal Sustainability Strategy: Final Report 19
<br />2018-2023
<br />2024-2027
<br />10 Year Total,
<br />2028 - 2037 '.
<br />20 -Year Total,
<br />2018- 2027
<br />i
<br />2018- 2037
<br />(Years 1- 6)
<br />(Years 7 -10)
<br />(Years 1-10)
<br />(Years 11- 20)
<br />[Years 1- 20)
<br />Estimated Potential Additional Revenue
<br />Transportation Benefit District -
<br />Vehicle Licensing Fee
<br />$ 6,540,000
<br />$ 6,510,000:
<br />$ 13,050,000
<br />$ 18,570,000
<br />$ 31,610,000
<br />Prope rtyTax Levy Lid Lift -
<br />County Road Fund ($1J5 per
<br />$1000 AV)
<br />$ 22,170,000
<br />$ 13,150,000
<br />`$ 35,320,000
<br />$ 26,990,000
<br />$ 62,320,000
<br />Total Estimated Additional
<br />Revenue
<br />$ 28,710,000
<br />$ 19,660,000
<br />$ 48,370,000
<br />$ 45,560,000
<br />$ 93,930,000
<br />Sources: Kittitas County Public Works 2018; Washington State Department of Licensing 2018; BERK Consulting 201 S.
<br />Note: These figures are rounded to the nearest 10,000.
<br />Alternative Options
<br />■ Transportation Benefit District — Sales and Use Tax (Voted)
<br />13 Independent taxing districts created through ordinance can impose an additional sales and use
<br />tax of up to 0.2 percent. This would apply to unincorporated areas and could be aligned to
<br />sales and use taxes in cities. Currently, the City of Ellensburg is a TBD with a 0.2 percent sales
<br />tax. The tax must be reauthorized by voters after 10 years.
<br />° A Sales and Use Tax levied through a TBD could bring in approximately $719,000 annually,
<br />based on the unincorporated County's 2016 taxable retail sales data from Washington State's
<br />Department of Revenue. Based on population projections, this is approximately $18.2 million
<br />over the 20 -year period. This option would need to be combined with another option.
<br />This option would help to align costs with beneficiaries, since the sales and use tax would apply
<br />to recreational users passing though the county. The County could frame this approach as
<br />aligning with the City of Ellensburg. This option would only partially cover the funding gap, and
<br />it could be more susceptible to market volatility, since taxes collected depend on commercial
<br />use.
<br />Potential additional revenue from each of these three tools is summarized in Exhibit 17 below.
<br />r�'j May 22, 201 B Kittitas County Public Works 1 20 -Year TIP Fiscal Sustainability Strategy: Final Report 19
<br />
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