Transportation Benefit District taxes set to expire

Since being approved by Shelton voters in 2016, sales tax for the city's Transportation Benefit District has collected $5 million dedicated for transportation maintenance projects.

The sales tax increase of 0.2% for 10 years has funded 10.2 miles of paving and chip sealing. Along with state and federal money, the TBD money has also helped pay for ambitious capital projects such as the Safe to Schools traffic improvements in front of Evergreen Elementary School and Shelton High School, and the Western Gateway paving and pedestrian improvements on Railroad Avenue between Eighth Street and Pacific Court.

In 2023, the TBD collected $732,126. That year, the district spent $207,126 on street maintenance and $591,092 on construction.

The 10-year TBD tax expires in March 2026. The City of Shelton is discussing placing a renewal of the tax on the ballot in August or November 2025.

To get the TBD renewal measure on the Nov. 5 general election ballot, the council must approve a resolution by July 15. If approved by voters, the city can start collecting the tax in early 2026.

At a Shelton City Council study session devoted to the TBD on Nov. 12, City Manager Mark Ziegler said the purpose of the TBD is to improve safety, improve and protect long-term investments in transportation infrastructure, reduce the risk of transportation facility failure, avoid more expensive infrastructure and replacements, and reduce congestion or stem an increase in congestion caused by failing city streets. He called the city's transportation system "one of our biggest assets within our community."

Ziegler said the sales tax is equitable, shared by residents and visitors. "Everyone who is shopping in Shelton pays for the roads," he said.

Ziegler said the city leverages future TBD money as a local match when applying for state or federal grants. For example, the city paid 10% in matching money for the paving on Turner Avenue, which cost $270,885; 10% on the Western Gateway project, which cost $760,000; 10% on the Downtown Connector project, which costs $4.3 million; and 13.5% on the Safe Routes to School project, which cost $770,103.

The city can also choose to raise the tax on car tabs instead of trying to renew the TBD.

"I'm always in favor of putting something on the ballot so if that's when we do it ... I think we need to do it sooner or later," said council member George Blush. "We should actually get on it."

Blush added, "I know that government grants don't like to be the first dollar in, so we need to have something to bring to the table by having a TBD and letting people know it's how the roads get funded. I'm pretty sure we can get a lot of people to go along."

Mayor Eric Onisko said he would prefer placing the proposed renewal on the ballot in August 2025.

"I would probably suggest doing this earlier, and if it fails, do it again in November," Onisko said. If it fails the first time, "Find a way to get it out to the public and pass," he said.

At the end of the study session, Ziegler said it sounded like the council was expressing a consensus to move forward to studying the proposal further.