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Assuming a constant rate of registered vehicles to population, and projecting forward using <br />population estimates, a $20 Vehicle Licensing Fee would bring in estimated annual additional <br />revenues of approximately $557,000 during the first year (after deducting 1 percent for DOL). <br />If the County's preference is to pursue a non -voted option, we recommend a phased approach, <br />where the County implements a $20 fee for 2 years, a $40 fee for 2 years, and a $50 fee for <br />the rest of the 20 -year period. This could bring an estimated additional $31.6 million over the <br />20 -year period. <br />13 The County could frame this approach as aligning with the City of Kittitas's Vehicle Licensing <br />Fee. One remaining challenge, however, is that the fee is limited to vehicles under 6,000 pounds. <br />This means there may still be an equity concern such that large vehicles, which cause a significant <br />amount of wear on the roads, would not bear the burden of these costs. <br />a Property Tax Levy Lid Lift — County Road Fund Levy (Voted) <br />13 Counties can levy either a single -year or multiyear levy lid lift, temporary or permanent, to <br />increase County road property taxes in taxing districts without banked capacity beyond the 1 <br />percent limit. <br />With a permanent single -year lid lift, the County can increase the County road fund <br />property taxes beyond the 1 percent limit in the first year, and then that amount is used to <br />calculate all future 1 percent levy limitations. The measure never expires, and the levy lid <br />never reverts. Single -year lid lifts may be submitted to voters at any special, primary, or <br />general election. <br />With a permanent multiyear lid lift, the County can increase the County road fund property <br />taxes beyond the 1 percent limit (up to a limit factor specified in the ballot measure), for 6 <br />consecutive years up to a rate equal to or less than the statutory maximum, which is $2.25 <br />per $1,000 of assessed value. After the 6 years, the total levy can increase by up to 1 <br />percent annually. Multiyear lid lifts must be submitted at the primary or general election. <br />13 The County is currently levying a County Road Fund Levy of only $0.98, and County staff <br />suggested bringing this up to $1.75 per $1,000 assessed value. With a permanent single -year <br />lid lift by setting the 2019 levy rate at $1.75 per $1,000 assessed value, the County Road Fund <br />Levy could bring in an additional $3.6 million during the first year, or $62.3 million over 20 <br />years, beyond what is currently being collected. This is based on projected valuations of <br />property and new construction in the unincorporated County. This, combined with the Vehicle <br />Licensing Fee, would generate $93.9 million over 20 years, enough to cover the funding gap <br />with a slight surplus available. <br />13 The property tax is relatively less susceptible to market volatility, since the property tax revenue <br />can continue to increase by 1 percent and is not dependent on market valuation. New <br />construction is susceptible to market volatility, though, and to the extent that property tax growth <br />beyond 1 percent in total is due to new construction, market conditions could affect property tax <br />revenue. <br />I May 22, 2018 Kittitas County Public Works 1 20 -Year TIP Fiscal Sustainability Strategy: Final Report 18 <br />