Transportation Benefit Districts?
Ahsley Probart from the Association of Washington Cities presented information on what exactly a Transportation Benefit District is and how it could work.
What is it?
“A 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.”
Until May 22nd, this was only a County-wide authority. However, assuming that Pierce County doesn’t suddenly charge ahead and create one (in the next day) the city can get into the game.
Council can impose up to a $20 vehicle license fee. With voter approval, it can go up to $100.
In yesterday’s Study Session there were questions about process. There were questions about linking a TBD to repayment of new transportation bonds. There were questions about Tim Eyman’s position on it – although not as much Eyman talk as it would seem from the TNT article.
We didn’t exactly see a lot of enthusiasm in the room for this new way to generate revenue and, possibly, fix our roads. Yet, it’ll be another tool to consider in the future. Maybe we’ll see something on the ballot this Fall… but only maybe.
Of course, you can always listen in on the audio at CityofTacoma.org
Link to The News Tribune
Filed under: General
19 comments
E Erik B. May 21, 2008
We didn’t exactly see a lot of enthusiasm in the room for this new way to generate revenue and, possibly, fix our roads. Yet, it’ll be another tool to consider in the future. Maybe we’ll see something on the ballot this Fall… but only maybe.
First impression:
It might be a good idea if it is limited to fixing existing roads but a bad idea if it is going to build new ones.
At least the tax is related to what is being funded.
I I'm for Change (for tacoma) May 21, 2008
I don’t mind paying my fair share, but why should I pay an additional $100 for my car that sits all week until I use it on the weekend, while cars from the ‘burbs tear up Tacoma city roads and don’t pay?
Just an initial impression after reading the post between meetings….
J Jake May 21, 2008
Charge me $20 for the streets but I would happily pay $100 a year if it included funding for streetcars!
E Elliot May 21, 2008
I’m fine with this, the roads in Tacoma are embarrassing.
However, as someone who generally is okay paying taxes and is more upset by tax loopholes for giant companies than taxes that go to the general fund, I’ve never understood why people think that car taxes are appropriate “usage taxes” for roads. Let’s get this straight: Good infrastructure benefits everyone, regardless of whether you put your tires on the roads. Roads bring goods to your markets, attract jobs to the area, and let public services (ambulances, fire trucks, garbage) get around better. These are benefits that everyone should pay into, not just individuals with cars. Like I said, I’m okay with this usage tax, since it seems that’s all people will accept any more, but if I’m paying $20 for my car, Safeway better be paying $200 for each of its 18 wheelers.
M morgan May 21, 2008
Although potholes are more effective than speed bumps and traffic circles and help make our neighborhoods more pedestrian friendly… I would be in favor of a tax that repairs our streets with one qualification: that rail be installed for streetcars.
E Elliot May 21, 2008
Honest question for folks talking about rail: For the amount of money that it would cost to put in a rail line (say, down 6th from Downtown) we could put a TON more busses on the road. Why is rail better? Sometimes I feel like it’s just that folks think that rail would be nicer to ride, which is fine, but it just doesn’t justify the cost to me when we have a easily expandable and under used bus system in place.
B billb May 21, 2008
I agree with Morgan. I think streetcars would be terrific for Tacoma. $20 for potholes and another $20 for streetcars!
A AlisonVG May 21, 2008
Sounds like a good opportunity to advocate for a Complete Streets policy in conjunction with any new tax. This would ensure that various agencies and departments coordinate improvements to the right of way (to reduce the number of times streets are ripped up, hopefully saving money and reducing traffic headaches) and when improvements are made, the street should be upgraded to work for all users (bikes, peds, transit and cars).
http://www.completestreets.org/
D Dave May 21, 2008
Um, excuse me… but isn’t street maintenance a basic city service that should have taken care of all along?
This whole thing smacks of double-charging.
D Dave May 21, 2008
billb: $20/year doesn’t buy much streetcar.
Let’s make it a per capita tax, instead of a car tab add-on, just for the sake of this example.
$20 × 30 years x 175,000 Tacoma residents = $105M.
The 1.5 mile Tacoma LINK line cost $90M. That was several years ago. And this example leaves out bond interest, mind you.
Let’s say that the city gets voter approval for the full $100 add-on authorized by state law (which is a non-starter at the polls, IMO). Over 30 years, that would only raise somewhere around a half-a-billion bucks. Interest will eat up a huge chunk of that. It’s not enough to build anything useful.
Streetcars are a nice idea, but we can’t afford them… UNLESS we cut out the waste and extravagance that we’ve seen Sound Transit build into its projects.
R RR Anderson May 21, 2008
is it cause the council is shoveling money into the gaping mouth of the russel dragon that we cant pay to fix the dang pot holes now?
What if we just stopped repairing roads altogether. Would that help reduce crime by 50%? like as in bank robbers couldn’t drive fast enough without wrecking their getaway cars?
E Erik B. May 21, 2008
<i>It’s a matter of statistics. Streetcars tend to attract more ridership than buses. Take a look at my post from today about this topic:</i>
I think there is going to have to be a streetcar or otherwise green component for this to pass. Otherwise, a 100 percent road 1960 era road building project is likely to fail in the city.
R Rob Collins May 22, 2008
WOW! Mass transit like street cars promotes ridership and therefore foot traffic. One of the biggest issues facing Tacoma is their transportation/parking needs/street repair. Two truths are clear. Number one, current tax revenue doesn’t even come close to addressing the growing concerns of street repair, mass transit (street cars), or simply filling potholes. Number two, the longer we wait to address our concerns about parking, street cars/light rail, and repairing roads the more it will cost!
Anyone ever heard of inflation? Well, if wait, and wait, and wait, because it “costs to much,” then that excuse will always win. However, stupidity for short sightedness costs far more then 2.5 billion dollars estimated for the street car budget.
We need to think ahead, plan accordingly, use the brains and legs we were given, and make appropriate changes to our lives. Money isn’t the only thing to consider! The value and perception Tacoma will gain by investing in herself again will be undeniable. It’s worth $100 to me, why isn’t it to you?
D Dave May 22, 2008
I’ve not heard the $2.5B figure, but it sounds about right to me. Sadly, at that price it not only will never be funded… it won’t be worth the cost if the funding is found.
To continue my thought experiment from earlier, let’s take a look at what that number really means. I will assume that the $2.5B includes bond interest, and that the bonds will be retired over a 30 year period.
$2.5B / 30 years / 175K Tacoma residents = ~$476 per capita per year, or ~$1.30 per day
Sorry, but that’s just too darned much money for a system that will only serve a fraction of the city, and it would still be too much even if every one of us were going to ride it frequently. I wish it were not so, but it is what it is.
I I'm for Change (for tacoma) May 22, 2008
Dave @ 16 — So we should do nothing? $1.30/day? That’s nothing. Plus, as time goes on more and more people will live in Tacoma so that cost should go down. A streetcar system can also be a way to focus on density. Start with a connected system for the core and existing neighborhoods. People will be more likily to live where the service is.
What I don’t want to pay for is a system that goes to every suburb, nook & cranny, and possible future site of housing in Pierce County. If residents want to live in Spanaway or the next far away town, they can pay to have the system expanded.
D Dave May 22, 2008
$1.30 a day would be nothing, if that were all that we are asked (sorry… ‘required’ would be a better word) to pay.
After all, how much do your income taxes come out to per day? Your property taxes? Your share of the sales tax? This tax, that tax, the other tax — none of them seem to amount to much… until one day you wake up and realize that you are forking over more than 40% of everything you earn.
I suppose that to the moneyed gentry, $1.30 a day is easily overlooked. To those earning minimum wage or living on a pension, it likely looks a little different.
And don’t forget the second part (the more important part) of what I’m saying: even at that stratospheric cost (no, not $1.30… rather $2.5 BILLION), we would not get a system that would be usable or beneficial for the city as a whole. That amount of money will get us a system that serves just a few select neighborhoods. The vast majority of the people who pay for this thing will never, or almost never, ride it.
Look, don’t get me wrong. I love the idea of light rail in our city. I’m just pointing out that what has been proposed isn’t practical, affordable, useful, fair or cost-effective. Other than that, it’s a great idea.
R Rob Collins May 23, 2008
Dave-
You’re right. In the concept that the current proposals lack a certain functionality to a wide range of Tacoma citizens. However, as “I’m for Change” points out, we must take action and start somewhere. A journey of a thousand miles starts with a single step, is written down somewhere. You agree that the street cars/light rail is a great idea that will better our community yet, at what point are you willing to justify the cost? Everything cost money. And, in addition to this, we see the inflationary signs are going to drive up prices not only on gas, gold, and good produce…they already are. When does gas to fill your tank become more expensive then investing in all of our futures? A well planned, well laid out, well executed mass transit system will save you money in the long run, the upfront cost is the part it seems you struggle with.
Finally, the 2.5 Billion would not cover the total cost for what I just described but could be useful to enough people to make it cost effective. We just need to commit to taking the first step. If you build it they will come.
J J. Cote May 24, 2008
Where does all of the money that Tacoma receives from gasoline taxes go? I KNOW that 20% goes to the LID Fund. This fund exists to help offset the expenses of Local Improvement Districts(LID). It totals in the tens of millions of dollars. Most LID’s are for grading and paving of ALLEY’s. The adjacent homeowners/business owners pay a set percentage of the project depending upon how much they are affected by it. The City kicks in the rest. Most LID’s are Alley paving projects.
20% of the money sent to us from gas taxes in Tacoma go toward paving alleys. Just think, if THAT project had stopped 5 years ago, we would have had an additional year’s worth of funds to use for repairing the streets.
This is NOT just about fixing potholes here and there. Our Maintainence crews need to seal cracks that appear in the asphalt so that they don’t become potholes. This should be an on-going, year round job. It is currently NOT being done.
Our roads are also in poor shape as a result of poor workmanship by contractors that break through the street to work on underground utilities. Just drive Eastbound on South 12th Street between Orchard and Alder. The contractor should be forced to come back to the job site and make repairs to the street. Don’t we have inspectors??
B broadweezy May 26, 2008
“If you build it they will come.”
If you build it, more condos will come (that’s good) with thier private underground parking garages (that’s not good) and with the anticipation that more businesses will come (also with thier surface parking lots) – thus negating the purpose and function of what streetcar/light rail is intended for. Unless you impose parking restrictions along any future rail corridor, I’m not convinced that it’s worth the investment as a mass-people-mover. Plus, has anyone riden the S.L.U.T (South lake union trolley) in Seattle? The travel time is not that much shorter than if you were to drive. Streetcars are not designed to go faster than about 30mph.