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Home My WebLink AboutDISCUSSION re Funding options JEFFERSON COUNTY TRANSPORTATION BENEFIT DISTRICT(JCTBD) AGENDA REQUEST TO: JCTBD Board Members FROM: Mark McCauley,County Administrator DATE: January 6,2025 SUBJECT: Discussion regarding potential enactment of a 1/10" of 1% sales tax and a $20 car tab fee to support JCTBD operations STATEMENT OF ISSUE: On December 16, 2024,the Jefferson County Board of Commissioners adopted Ordinance No. 10-1216-24 establishing the Jefferson County Transportation Benefit District(JCTBD) for unincorporated Jefferson County. The JCTBD was established because the Jefferson County Road Fund cannot maintain its existing level of service without addition revenue. ANALYSIS: Chapter 36.73.065(4)(a)(i) RCW authorizes JCTBD's to enact a$20.00 annual vehicle license fee by a majority vote of the JCTBD Board. Chapter 36.73.065(4)(a)(v)RCW authorizes JCTBD's to enact a 1/1Wh of 1% sales and use tax by a majority vote of the JCTBD Board. The Board is asked to discuss the enactment of both of these revenue sources. Should the Board decide to enact these revenue sources, it may direct staff to prepare resolutions for the JCTBD Board to review at a special meeting of the JCTBD Board to be scheduled on Monday,January 13,2025. All revenue generated by the JCTBD is restricted to uses authorized by RCW 36.73. Ordinance No. 10- 1216-24, codified in chapter 3.90 Jefferson County Code(JCC), details how these JCTBD funds could be spent: 3.90.060 Use of funds. (1) The funds generated by the transportation benefit district may be used for any purpose allowed by law including to operate the district and to maintain, preserve, acquire, construct, improve,provide and fund transportation improvements that are consistent with existing state, regional, and local transportation plans and necessitated by existing or reasonably foreseeable congestion levels pursuant to chapter 36.73 RCW, as enacted or subsequently amended. (2) The transportation improvements funded by the district shall be made in an effort to reduce the risk of transportation facility failure and improve safety performance, increase operating efficiency and preserve and maintain optimal performance of the infrastructure over time to avoid expensive infrastructure replacement in the future by prioritizing investments in programs that provide: (a) Transportation System Preservation. Preserve, operate, maintain, and/or improve existing transportation infrastructures. (b) Transportation System Safety. Improve the safety performance and security of those who use the transportation system. (c) Other Projects. Any change or expansion of these authorized purposes shall be undertaken only after notice, public hearing and adoption of an authorizing ordinance in accordance with RCW 36.73.050(2)(b). Jefferson County's Public Works Department previously presented to BoCC on December 16, 2024, that the primary use of any potential JCTBD funds would be for necessary and basic road maintenance, including but not limited to chip sealing and road striping. FISCAL IMPACT: It is estimated that enactment of the two revenue sources would generate roughly $1.1 million in revenue which would be used to support operations of the county's Road Fund. RECOMMENDATION: That the Board consider whether to enact any of the possible revenue sources and give staff guidance as appropriate. REVIEWED BY: -Z4AW4��. Mark McCauley unty Administrator Date -IAIWAWi i. ,f. n � a �; rncn rn 'on *no z � rnrn rnzrh o ` rncn � — _ � c,, � C) -goo � v � -ic� rn CD-3 o � nOrn �- N � yCy � npZZ 0 y Z y . l l Background 9sfIINVS� • Years of Decreasing Revenue for the Road Fund • This is a Threat to the Quality of County Roads • BoCC creates the TBD on 12/16/2024 .W,4- • Purpose of TBD is to provide a new source of funds for County Roads January 6,2025 Jefferson County Transportation Benefit District Special Meeting CREATION OF THE JEFFERSON COUNTY TRANSPORTATION BENEFIT DISTRICT (JCTBD) -- ---- ---- September 23, 2024 Public Works presents to BoCC on funding situation for Road Fund, presents idea of an TBD. BoCC instructs staff to come Lback with proposed TBD. January 27, 2025 January 13, 2025 BoCC holds Public JCTBD holds Special Meeting to vote Hearing on possible on Revenue Options assumption of JCTBD r December 16, 2024 January 6, 2025 April and July 2025 IF BoCC adopts Ordinance JCTBD holds its first Special Meeting; If approved by JCTBD, revenue 10-1216-24 creating BoCC approves ILA with JCTBD for staff may begin to be collected in JCTBD support April and July respectively !anuary"a, 202`; Jefterson(;ounty Transportation Benefit Districi., „ Despite good management and cutting all additional expenditures wherever possible, Jefferson County roads still need additional Goal of the funding for basic maintenance. The JCTBD is legally authorized by the WA State Jefferson County Legislature to pursue appropriate and Transportation reasonable funding to maintain Jefferson Benefit District County roads. The goal of the JCTBD is to support the good work being done, so county roads can continue to meet the needs of those who live in, work in, and visit Jefferson County. January 6,2025 Jefferson County Transportation Benefit District Special Meeting 4 Agenda • Elect a Board Chair �-� * Authorize Interlocal Agreement * Adopt a Material Change Policy Discuss Funding Options BoCC JCTBD 1 . January 6, 2025 1 . January 6, 2025 • ILA with JCTBD • Elect Board Chair 2. January 13, 2025 • ILA with County Wait, who is doing • Resolution of Intent to • Material Change Policy • Consider Funding Options what? Assume JCTBD g p • Notice of Public Hearing 2. January 13, 2025 3. January 27, 2025 Possible councilmanic vote on • Public Hearing on Assumption potential revenue sources *If BoCC assumes the JCTBD, then *If BoCC assumes the JCTBD after JCTBD business can be done at the public hearing on January 27, BoCC meetings with BoCC as the 2025, there would not need to be any governing board of the JCTBD. more separate JCTBD meetings. If BoCC does not assume, then JCTBD will have regular JCTBD meetings with the BoCC continuing as the JCTBD Board in an ex officio status. January 6,2025 Jefferson County Transportation Benefit District Special Meeting Support1 Staff Interlocal 2. Clerk of i • . • LegalAgreement 3. • i . Financial January 6,2025 Jefferson county Transportation Benefit District opecial Meeting Addresses material changes to cost, scope, and schedule, the level of Material Change change that will require governing body PoliC involvement, and how the governing y body will address those changes RCW 36.73. 160( 1 ) TransportationJanuary 6,2025 Jefferson County OPTION RECOMMENDED 1 . Sales and Use Tax 1 . Yes 2. Vehicle License Fees 2. Yes 3. General Obligation Bonds 3. No Funding Options 4. Impact Fees 4. No 5. Vehicle Tolls 5. No 6. Excess Property Taxes 6. No 7. Local Improvement Districts 7. No January 6,2025 Jefferson County Transportation Benefit District Special Meeting 9 1 . Up to one-tenth of one percent of Funding Option the sales and use tax in accordance Recommendation with RCW 82.14.0455 RCW 36.73.065(4)(a)(v) . hi Captures h volume of visitors who use p g roads • Minimum TBD sales tax revenue • Start receiving revenue after April 2025 • Councilmanic 0. 1 % (no public vote) Funding Option 2. Up to $20 of the vehicle fee p Recommendation authorized in RCW 82.80.140 RCW 36.73.065(4)(a)(i) • Minimum TBD vehicle fee • State receiving revenue after July 2025 • Councilmanic 0. 1 % (no public vote) I of . 9 4- • Enabling Ordinance No. 10-1216-24 • Jefferson County Code, 3.90.060 Use of funds. (1) The funds generated by the transportation benefit district may be used for any purpose allowed by law including to operate the district and to maintain, preserve, acquire, construct, improve, provide and fund transportation improvements that are consistent with existing state, regional, and local transportation plans and necessitated by existing or reasonably foreseeable congestion levels pursuant to chapter 36.73 RCW, as enacted or subsequently amended. What c a n funding (2) The transportation improvements funded by the district shall be made in an effort to reduce the risk of transportation facility failure and improve safety performance, increase operating efficiency and preserve be used for? and maintain optimal performance of the infrastructure over time to avoid expensive infrastructure replacement in the future by prioritizing investments in programs that provide: (a) Transportation System Preservation. Preserve, operate, maintain, and/or improve existing transportation infrastructures. (b) Transportation System Safety. Improve the safety performance and security of those who use the transportation system. (c) Other Projects. Any change or expansion of these authorized purposes shall be undertaken only after notice, public hearing and adoption of an authorizing ordinance in accordance with RCW 36.73.050(2)(b). Timeline for Potential Sales & Use Tax and Vehicle License Fee Revenue Options January 61n JCTBD Special Meeting — Discuss Funding Options After April 15t � Spring 2025 JCTBD DOR Authorized to Collect of starts generating Sales & Use Tax (0.1%) revenue r January 131" On or around July 13t" December 2025 JCTBD Special Meeting DOL Authorized to Collect $20.00 JCTBD publishes annual report on Vote on Funding Options Vehicle License Fee can be collected road maintenance. J Jefferson County Transportation Benefit District Special Meeting Questions/ Discussion Jefferson County Transportation Benefit District Special Meeting 14