Pacific officials remain deadlocked about how to fund street repairs.
And that could impact how many road projects the City undertakes next year.
Councilmembers again grappled with determining a funding mechanism for Pacific’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 – in January.
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 manager, suggested the council could approve that, and then reduce the fee if an initiative to increase through a sales or property tax is approved later.
Councilmember Clint Steiger said he felt like that was holding the voters “hostage” because they would only receive a reduction on their car tab fees if another tax was approved.
While Steiger supports a sales tax increase to fund the TBD, Councilmember Vic Kave thinks a property tax hike makes the most sense. He said that is because improved roads increase property values.
“The property tax increase is the most fair way,” said Kave, adding that business owners also would contribute. “With the property tax, it’s the most evenly assessed in the community.”
Guier disagreed.
“You’re only hitting the apartment owner (with a property tax) and not all of the people who drive cars in that apartment,” she said.
The council has the authority to implement a vehicle-registration fee, if it does not exceed $20, without a vote. But any proposal to increase property or sales taxes must be placed on the ballot. Morgan estimated a special election to place an initiative on the ballot would cost the City $5,000-$10,000.
Richard Gould, city administrator, said the City has about a $170,000 shortfall in its budget to address road issues next year. Funding the TBD would not account for all of that as Morgan said it would only generate $100,000-$125,000 per year from either a vehicle registration fee, or sales, or property tax increase.
