Chelan City Council test drives new Transportation Benefit District

CHELAN – The city council put the pedal to the metal on its new Transportation Benefit District (TBD) during the regular bi-monthly meeting on April 23. The first order of business was the election of Mayor Erin McCardle as the designated driver (chairperson) of the TBD’s governing body.

“This is new for all of us,” said McCardle, who turned the meeting over to City Administrator Wade Farris to explain the new program.

“At the next meeting…you will decide on the motion how to fund the benefit district,” Farris told council members.

Farris clarified that the TBD encompasses the city limits and is a way to fund transportation projects.

“There is a range of options from a license tab fee to a .01 sales tax - which you voted on – to a .02 or .03 sales tax proposed to vote on by the citizens,” Farris said.

He outlined some of the benefits and drawbacks that come with the available options.

The license tab, that’s an easy kill, so to speak, but guess what these citizens are going to do if you do that?” said Farris. “They’re going to raise holy heck because it only effects the citizens. When they go to pay their car tabs there’s an extra fee…they’re not going to be happy, and it doesn’t raise a whole lot of money.”

“$93,960 annually,” McCardle said.

Farris noted that .01 percent is another option that raises about $300,000 a year but reminded council members that in earlier discussions they did feel comfortable imposing that without citizens having a voice in the matter.

“If you did the .03 percent, it would be almost $900,000 a year, pretty significant,” said Farris.

The latter would require citizen approval as a ballot measure.

“This can only be used for transportation projects, period, end of story,” Farris stressed.

The city proposed creation of the TBD last November and approved it in January 2024. For a tourist destination like Chelan. money is always tight to fund street repairs and maintenance that comes with the extra volume of traffic.

McCardle pointed out that of the 8.4 percent state sales tax collected, very little flows back to the cities. A typical $100 purchase generates $.85 for the City of Chelan.

Farris added that the only funding source for street projects and maintenance, besides grants, is property tax. That amount barely covers maintenance so the TBD will help the city obtain more grants and have matching funds for those grants. When the city applies for grants from agencies like the Transportation Improvement Board (TIB) one of the scoring hurdles that comes up is: Does your city have a TBD?

The city will next consider strategies to educate the voting public about the advantages of approving a TBD proposal.

Mike Maltais: 360-333-8483 or michael@ward.media