SPOKANE VALLEY – The city has been discussing a transportation benefit district for quite some time, and Deputy City Manager Erik Lamb brought the second reading of ordinance 23-018 on Oct. 24, which was passed by council.
Lamb also asked for consensus on setting a public hearing, and that passed with five council members voting for it, and two voting in opposition.
Council woman Laura Padden and council woman Brandi Peetz did not vote in favor of the ordinance during the second reading.
That is the ordinance that would amend the current city model and create the benefit district.
Lamb said it will also create another set of meetings that city staff and council will have to attend, and that will bring in more administrative responsibilities as well.
Lamb said no specific funding method or amount is being proposed, but rather just an ordinance to amend current city code.
State law allows cities and counties to form benefit districts to raise revenue. Revenue that is typically gained through local sales tax increases or adding different types of fees such as vehicle fees.
The funds typically get used for some standard city projects such as street paving, crack sealing, pothole repairs, snow plowing, cleaning storm drains and more.
Spokane Valley has over 320 miles of local access streets and nearly 130 miles of larger arterial and collector roadways.
An estimated $16 million is needed annually to maintain adequate pavement condition, but the city is falling short of that amount by at least five million dollars for local streets, according to a council summary.
Without a dedicated fund, the city has been tapping its reserves, said deputy city manager Erik Lamb, who said council has previously identified transportation as one of the city’s top-two priorities.
Revenues can accrue over time for larger projects as well, or that money can be used to match funds brought in with grants.
The first reading on Oct. 17 brought mixed feelings from council, although it was moved forward.
Council woman Laura Padden raised some concerns on Oct. 17.
Padden said she worries that a transportation benefit district would add another burden on taxpayers at a time when inflation is very high. She said a lot of entities are asking taxpayers for money.
Padden was speaking of Spokane County’s Measure 1 proposal on the Nov. 7 election ballot.
Another measure asking for higher taxes that will in turn be used for criminal justice funding.
Echoing Padden’s concerns, fellow council woman Brandi Peetz said she’s heard from residents living on fixed incomes. Meaning that even a slight increase in taxes can hurt them financially.
Peetz said the city has previously found alternative funding methods to pay for road maintenance.
Peetz ended up voting to advance the draft to a second reading even with her voiced concerns. Although the second reading brought a different result from the councilwoman.
Mayor Pam Haley and councilmen Tim Hattenburg, Rod Higgins, Ben Wick, and Arne Woodard also all voted the ordinance through.
A survey was sent out in 2021 asking for resident opinions on roadwork priorities according to Adam Jackson, the city engineering manager.
1,018 respondents named implementing surface treatments on local streets was a priority.
Jackson said it is preferable to maintain a better road than to pay higher repair costs to fix a road in poor condition.
Washington state has 114 municipal transportation benefit districts, and Lamb said 66 are funded by sales tax revenue, 56 are funded by vehicle license fees, and 13 are funded by both.
In Washington, a local sales tax increase up to 0.3 percent or three cents on every $10 purchase is allowed.
Any increase over 0.1 percent is subject to voter approval and must be renewed every 10 years.
City council may impose a basic $20 annual vehicle license fee, but voter approval is typically needed for higher amounts up to $100.
Lamb also explained that annual revenue estimates varied between $2.78 million to $6.96 million using tab fees of $20 to $50, which would only be levied on vehicle owners within city limits.
Under the sales tax option, estimated revenue ranges from $3.8 million to $11.4 million, depending on the percentage increase.
That cost would be shared by non-residents coming to Spokane Valley to shop, which Lamb said nearly 48 percent of the retail sales taxes comes from visitors and not residents.
Matthew graduated from West Virginia University-Parkersburg in 2011 with a journalism degree. He's an award-winning photographer and enjoys writing stories about people.
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