What Is a Transportation Benefit District?

A Transportation Benefit District (TBD) is a quasi-municipal corporation and independent taxing district created for the sole purpose of acquiring, constructing, improving, providing, and funding transportation improvements within the district. The boundaries of the TBD are identical with the City limits.

Background

Statutory authority for Transportation Benefit Districts has existed for 20 years. However, until 2007 to establish a TBD required a vote of the people. In 2007, the Association of Washington Cites (AWC) worked with the Legislature to provide some relief to cities and counties for traffic congestion. AWC was successful in amending the law to allow some flexibility. A City (or County) may (but Sequim has chosen not to) implement up to a $20 per vehicle fee with City Council (or County Commissioner) approval under Chapter 36.73 RCW. Sequim Chose to submit to the voters a proposed 2/10ths of 1% sales tax increase to fund the TBD. This sales tax increase passed in November 2009 with a 58% affirmative vote of the citizens. The members of the legislative authority proposing to establish the district, in this case the Sequim City Council, make up the TBD Board. Members of the TBD Board are acting ex-officio and independently from City Council.

Sequim City Council Establishes a TBD

On behalf of the Sequim Transportation Benefit District, the Washington State Department of Revenue will be remitting collected TBD sales tax revenue after April 2010, when the tax is implemented. Revenues are expected beginning in June, 2010.

As referenced above, Washington State legislature permits local governments to establish a TBD and accompanying funding sources to provide for the preservation, maintenance, and construction of local public ways.

In July of 2008 and in an August 2008 amendment, after conducting public hearings, the Sequim City Council approved Ordinances 2008-008 and 2008-012 that formed the Sequim Transportation Benefit District and adopted a new chapter to the Sequim Municipal Code, entitled "Transportation Benefit District". The ordinance specifies that the boundaries for the TBD be coextensive with the City limits. Funds used to operate the District must make transportation improvements that are consistent with existing regional, state, and local transportation plans and necessitated by existing and reasonably foreseeable congestion levels as provided in Chapter 36.73 RCW.

The council further determined that it is in the public interest to provide for transportation improvements that specifically focus on reducing the risk of transportation facility failure and improving safety, decreasing travel time, increasing daily and peak period trip capacity, improving modal connectivity, and preserving and maintaining optimal performance of transportation infrastructure. The governing board of the TBD shall be the Sequim City Council serving in an ex-officio and independent capacity as per RCW 36.73.020. This was done through an Interlocal Agreement between the City and the TBD.

In March 2010, the Sequim TBD Board approved the Charter and Bylaws of the Sequim Transportation Benefit District outlining the conditions by which the TBD is organized and defining its rights and privileges.

With the establishment of a TBD, the TBD and the City can begin to replace the transportation funding that has been lost over the years, and be better able to preserve, maintain or expand the City’s transportation infrastructure into the future.

Contact the TBD

c/o City of Sequim
152 W. Cedar Street
Sequim, WA 98382