Pacific officials agree on one concept: the city’s streets must be addressed.
But councilmembers grappled with determining a funding mechanism for the City’s Transportation Benefit District (TBD) during Monday night’s public hearing on the subject at City Hall.
City leaders will revisit the subject again – with a possible vote – during the Dec. 5 council meeting.
On July 15, the council authorized the formation of a TBD, which would allow the City to charge an extra vehicle registration fee and sales and property taxes to fund street projects through the Revised Code of Washington. Any money raised through a TBD must be used for road projects.
Mayor Leanne Guier supported a $20 vehicle-registration fee. Jim Morgan, public works director, said that is the most popular TBD funding mechanism as it is used by more than 50 percent of the 90 cities, towns and five counties that have implemented that structure in the state.
Councilmembers Stacy Oliveira and Dave Storaasli favored a $20 vehicle-registration fee.
“I believe we were put into these positions – elected positions – to make these tough decisions,” Storaasli said. “I think we need the money now.”
But excluding Justin Newlun, who was absent, the rest of the council had other ideas. Katie Garberding voiced concerns about how the proceeds of a TBD would be used, while Kerry Garberding and Clint Steiger said they would prefer a sales tax increase. They said that model would ensure motorists who stopped in Pacific and purchased gas or other items also would contribute to the fund. Steiger added that a vehicle-registration fee is “not fair” to residents, such as himself, who own multiple cars.
“I drove my No. 1 vehicle 5,000 miles last year,” he said.
Councilmember Vic Kave said he favored a “multi-pronged approach,” where the City would use a variety of taxes to address its street and sidewalk needs. Morgan estimated that Pacific needs $20 million for that to occur, but a TBD would only generate $100,000-$125,000 per year from either a vehicle registration or sales or property-tax increase. If the City was only going to implement one tax increase, Kave saih he felt a property-tax hike made the most sense.
“The improvement is intended to bolster the value of our properties,” he said.
Residents who spoke at the public hearing were divided on the proposal. Linda White expressed concerns that the plan to increase utility rates and add a TBD tax would be burdensome for senior citizens.
“I’m concerned because we have two whammies coming our way,” she said. “Have you considered the impact on senior citizens? To me, it makes sense to do one (tax increase) at a time.”
But others, including local businessman Jerry Eck, were supportive of funding the TBD through a vehicle-registration fee.
“We need our roads fixed,” he said. “If we want to make some headway, we’ve got to start somewhere.”
The City Council has the authority to implement a vehicle-registration fee, as long as it does not exceed $20, without a vote. But any proposal to increase property or sales taxes must be placed on the ballot.
