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Home My WebLink About2025 Transportation Benefit District Annual Report - 051126 Department of Public Works O Consent Agenda Page 1 of 1 Jefferson County Board of Commissioners Agenda Request To: Board of Commissioners Josh Peters, County Administrator From: Eric Kuzma, Public Works Director Agenda Date: May 11, 2026 Subject: 2025 Transportation Benefit District Annual Report Statement of Issue: In accordance with RCW 36.73.160(2) and Jefferson County Code (JCC) 3.90.040, attached please find the 2025 Annual Report for the Jefferson County Transportation Benefit District (TBD). Analysis/Strategic Goals/Pro's & Con's: Jefferson County formed a Transportation Benefit District (TBD) in 2025. The Board of County Commissioners also acts as the Board of the TBD. Each year, a report of TBD activities, expenditures, and revenues is to be prepared and made available to the Board. In 2025, all of the TBD revenues were used for pavement maintenance and preservation activities including chip sealing, crack sealing, asphalt dig outs and repairs, and asphalt pre leveling. Without the TBD, the chip seal program would have been cancelled. Fiscal Impact/Cost Benefit Analysis: This is an informational report. Recommendation: This is an informational report. No action is needed. Department Contact: Monte Reinders, County Engineer Fleet/Roads Operations Manager x242 Reviewed By: 0 7(9- Josh Peters; County Administrator Date oa�a o{ refs vedby trGo��s5�° JeCs°r Jefferson County Department of Public Works Zes 623 Sheridan St. Port Townsend, WA 98368 (360)385-9160 Monte Reinders, P.E. Public Works Director/County Engineer Memorandum To: Jefferson County Board of Commissioners From: Monte Reinders P.E.,County Engineer Date: April 29,2026 Re: 2025 Transportation Benefit District(TBD)Annual Report In accordance with RCW 36.73.160(2) and Jefferson County Code (JCC) 3.90.040,the following is the 2025 Annual Report for the Jefferson County Transportation Benefit District(TBD). Background Jefferson County formed a TBD in early 2025 with a primary emphasis on county road maintenance and preservation. Traditional sources of road revenue consisting of the road levy (property tax), motor vehicle fuel tax(MVFT), and federal forest harvest were no longer adequate to address basic needs. The road levy is limited to 1%annual growth plus new construction. The motor vehicle fuel tax has stagnated with increasing vehicle fuel efficiency, a shift to "work from home"post-Covid, and the increasing prevalence of on-line shopping rather than driving to stores. The federal timber harvest share was cut to approximately 30% of traditional levels in 2010 with no recovery predicted. At the same time, the cost of road maintenance and construction was exceeding a 5% annual rate of inflation. As a result, dramatic cuts to the maintenance and preservation of county roads occurred such as the chip seal program dropping from 35 miles per year in the mid-2000s to 15 miles per year more recently with further cuts on the horizon. Jefferson County recognizes that pavement maintenance and preservation is an essential government function, and that sentiment has been echoed by many in the community. The County simply cannot afford to let roads deteriorate and fail since the cost of rebuilding them is vastly more expensive. Also, roads in poor condition can pose a danger and inconvenience to the traveling public and negatively impact commerce. To address this need, Jefferson County turned to the one tool available—the Transportation Benefit District. Many cities in Washington had implemented this tool already, but Jefferson County was the first county in the State to fund a TBD. (Several other counties are now investigating the formation of TBDs to help backfill their failing road maintenance budgets). The Jefferson TBD was funded with a 0.1% sales tax and a$20 car license tab fee. It was estimated that the combined revenue from these sources would be in the $900,000 to $1,000,000 range per year. For 2025, the sales tax began in April and the car license fee in July/August. The Jefferson County Board of Commissioners has assumed the duties of the Transportation Benefit District Board. They are one and the same. TBD monies are deposited in their own separate fund. They are then transferred to the County's Road Fund for expenditure as needed. In late 2025, the Board elected to place a ballot measure before the voters to authorize another 0.2% sales tax for the TBD. It was approved by the voters with about 65% in favor. These additional revenues do not begin until mid-year 2026. 2025 TBD Report In 2025, TBD revenues collected were as follows: • Sales Tax: $336,406.62 • Car Tabs: $191,762.57 • Interest: $ 4,458.52 • Total: $532,627.71 In 2025, $531,177.00 was transferred from the TBD fund to the Jefferson County Road Fund and used for pavement maintenance and preservation activities. In 2025, Jefferson County chip/fog sealed approximately 18 centerline miles of county road at a cost of approximately $889,000. In addition, a three-year supply of chip rock was purchased and delivered to Jefferson County of which approximately $536,000 remains on hand for future years. Costs for pavement preparation(crack sealing, asphalt dig outs and patching, and asphalt pre-leveling) were approximately $327,000. Of this combined total cost($1,752,000), approximately $209,000 was covered with County Arterial Preservation Program funds from the State (derived from gas tax). All of the TBD revenue was applied to the 2025 pavement preservation program with the balance covered by traditional Road Fund revenues (road levy and MVFT). Without the TBD, the chip/fog seal program would have been cancelled in 2025. :;1 `; 4 ;1. w+, , .`...wW ate.- A N t .,,r }..,-! / +a Kti "t i, i,� ; •y\ ' .V.":, emu. .� r•:'' t .,k'+2 \ \ lj`}4` , . \}c1a+,4 P - , �, .Y la _�...--_.Y3•iis.,., i..., 2'. �i- t• y r .Y - ', �.'C�\ \ .:'k Y .4�..a r 3 g'sm�. a.\\ > Hb>-` �'�er 4• :.,` �•yy < r � - • + Sq ,. , �tv a' 4��- :,- y '•'� I -e ..:,".: 3L. si' ` 'i rtrr `��k r .As�� ` x,1,1 `,vvx -te;,ex> L+ .� 1t^' < \: a 1+:�.. i�°c,, .4' .L t*..,s., i ;„ r - . 3 tom'•• .� } t N `'SE:: V�+; 'fib u. F '� s\ I � f_.a, J +s.� }� w rr%< 1. Aitkk � I v.,i�` .rye:.. "ih »�,i* '� .may, ,\._Ys,. 0 .rt t`. 1. n'4 lr `3 �i, ' 1�, °� �� ,. iii, Y• N ti. ' 1 ,..:. •.a. .f.f '•"" ray 114 T. - - „+wY .-.,i J� +. +�nf ��'�lY Aw�y� )# � w..�. f - •.r'�'-J,/ �+�-�+ t, Lam: ♦M,�(+ay , 3.��+ 7T.S_ _ � w �- .Fwt `?.C�\.Y• ' '' � 3� 3• "u • etp ' . . - <^' iP'.a '! �„ ; i - I � • 42S- ro �,. ._.Mdi..ri i(' Y ''SSM k' R- _. .. ' ...4"1,:i..i. . 4:.,,.y. .E.1,i-:.; -i., ,,,;01,ii;;;; 410. or.. :(;.:-.t.,--k , ,s,...4 4,'- , r 3 )." -'„A ` y 'Y ., ^ - r r .1 # ' ".f J3if+ .io'• ,r � ,v. 4��,r ' „ rt V'x c9 '• kit it r Chip Sealing Van Trojen Road, Jefferson County, WA (2025) FOR 2025 13 ACCOUNTS FOR: ORIGINAL REVISED AVAILABLE PCT 182 JC TRANSPORTATION BEN DISTRICT APPROP BUDGET YTD ACTUAL MTD ACTUAL ENCUMBRANCES BUDGET USE/COL .. 18231321 313210 SALES TAX - JCTBD 0 -350,000 -336,406.62 .00 .00 -13,593.38 96.1V 44t#IbI!OM4 (4I411444:4. KlRL•`.K'171:K(144111144:1121I411=I; 18231760 317600 VEHICLE FEES - JCT 0 -350,000 -191,762.57 .00 .00 -158,237.43 54.8%' N . 1 lu it 18236111 361100 INVESTMENT INTERES 0 0 -4,458.52 .00 .00 4,458.52 100.0% k(lf#VYLCIAFAI F114:[1141 S97180 TR TO RODS 18259700 597180 TR TO ROADS 0 700,000 531,177.00 531,177.00 .00 168,823.00 75.9% TOTAL JC TRANSPORTATION BEN DISTR 0 0 -1,450.71 531,177.00 .00 1,450.71 100.0% TOTAL REVENUES 0 -700,000 -532,627.71 .00 .00 -167,372.29 TOTAL EXPENSES 0 700,000 531,177.00 531,177.00 .00 168,823.00