2018-165 Transportation Plan - Laserfiche WebLink

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Recommendations When comparing total available revenues for transportation with expected costs over the 20-year study period, revenues fall short of paying for even the current estimated operating costs, before considering policy changes that would increase those operating costs. This makes sense when considering that revenues have been declining while costs are increasing. There are two main types of strategies that can be used to balance this implementation plan: • Increase revenue, through increases in existing funding tools or implementation of new funding or financing tools. • Decrease expenses, by decreasing level-of-service or further prioritizing capital projects. Decreasing current expenses is not likely to yield large gains, as the County has already implemented this strategy where possible. Funding and financing strategies should fund capital investments that are currently needed, as well as help the County to plan to sustainably fund future capital needs. RECOMMENDED STRATEGY FOR BALANCING OPERATING AND CAPITAL REVENUES AND COSTS To address the $91 million funding gap in operating and capital revenues over the 20-year planning period, we worked with County staff to prioritize funding strategies. Each of these options has its own challenges, and there is no easy solution to balancing revenues and needs. BERK's recommended funding option is for the County to pursue a Transportation Benefit District (TBD) and then establish a Vehicle Licensing Fee, in combination with a County Road property tax levy lid lift. Revenues generated from these two sources can be used to cover operating and/or capital costs. Recommended Option • Transportation Benefit District -Vehicle Licensing Fee (Non-Voted) 0 Independent taxing districts created through ordinance can impose a vehicle fee, without voter approval, of up to $20. If a $20 fee has been in effect for at least 24 months, then a vehicle fee up to $40 can be imposed; if a $40 fee has been in effect for at least 24 months, then a $50 vehicle fee can be imposed. Vehicle license fees can be up to $100 with voter approval. 0 Two ordinances are required to establish a Vehicle Licensing Fee, first a Transportation Benefit District (TBD) and then a Vehicle Licensing Fee itself. Currently, over 100 cities have established TBDs; the City of Kittitas is a TBD with a $20 Vehicle Licensing Fee. The County could potentially set a fee aligned with the City of Kittitas. Five counties have established a TBD: King, Pierce, Points Roberts (formed by Whatcom County), Snohomish, and Thurston County. 0 According to Washington State Department of Licensing (DOL) data, there are 27,549 vehicles registered in the unincorporated County. This is based on the number of vehicles with an expiration day between February 1, 2018, and January 31, 2019, in unincorporated County areas. The DOL collects 1 percent of revenue generated from a Vehicle Licensing Fee. The fee can be collected 6 months after it is approved, and the County must notify DOL once the fee has been approved so that the fee can be included in vehicle renewal notices. : ~II May 22, 2018 Kittitas County Public Works I 20-Year TIP Fiscal Sustainability Strategy : Final Report 17