The City of Stanwood approved Ordinance No. 1328 on November 19, 2012, establishing Stanwood Transportation Benefit District (the "District") pursuant to Chapter 36.73 RCW. The District was originally organized as a legally separate municipal entity and taxing authority from the City. By Ordinance No. 1406, in January 2016, the City Council assumed the rights, powers, immunities, functions, and obligations of the District, as allowed by RCW 36.74.020, and as a result, the District was absorbed into the City and is no longer considered a legally separate entity. 

RCW 36.73.040(3) gives transportation benefit districts the authority to impose taxes, fees, charges, and tolls to carry out the purposes of the District. The City currently imposes a sales and use tax, in accordance with RCW 82.14.0455, as the authorized source of revenue to finance the transportation capital improvements identified in the City’s Six-year Capital Improvements Plan or as hereafter amended, (the "TBD Projects"). 

TBD fees are used to help pay for pavement management on City arterials and major collectors. RCW 36.73.020 lays out the following criteria for project selection:

• Reduced risk of transportation facility failure and improved safety
• Improved travel time
• Improved air quality
• Increases in daily and peak period trip capacity
• Improved freight mobility
• Cost-effectiveness of the investment
• Optimal performance of the system through time
• Must be within the boundaries of the Stanwood CIty
• Other criteria as adopted by the TBD Board

Both residents and non-residents who purchase goods and services in Stanwood would pay the tax to help fund street improvements. As an alternative to the sales tax, City Council considered, and dismissed the option of imposing councilmanic vehicle license fees up to $50 without voter approval. Tab fees are generally considered less equitable than a sales tax given that only city residents pay car tab fees, and the sales tax is paid by all shoppers in the city, i.e., the greater Stanwood-Camano community. This is equitable as this is the community that contributes to the need for more roads and ultimately the amount of capital investment in roads is required as well as the amount of maintenance and operation costs.

WHY DO WE NEED TO RENEW THE SALES TAX LEVY?

Building safe streets ranked as the highest resident priority in a recent survey. Street maintenance is also an important part of the city’s economic development efforts. The city’s streets are often the first impression visitors, potential business owners and customers have when they enter Stanwood. Other economic incentives may not matter if Stanwood’s streets are not well maintained and inviting. In this case "curb appeal" is not just a figure of speech. The Transportation Benefit Fund will continue to provide funding to ensure Stanwood streets, sidewalks, and trails do not deteriorate and require a more expensive fix in the future.

WHO GETS TO VOTE?

Only Stanwood residents may vote to renew taxes within city limits.

WHO PAYS THE TAX TO THE CITY?

Both residents and visitors who purchase goods and services in Stanwood would pay the tax to help fund street improvements. As an alternative to the sales tax, City Council considered, and dismissed the option of imposing councilmanic vehicle license fees up to $50 without voter approval. Tab fees are generally considered less equitable than a sales tax given that only city residents pay car tab fees, and the sales tax is paid by all shoppers in the city, i.e., the greater Stanwood-Camano community. This is equitable as this is the community that contributes to the need for more roads and ultimately the amount of capital investment in roads is required as well as the amount of maintenance and operation costs.

WILL THE FUNDS BE DEDICATED TO STREET IMPROVEMENTS?

Council is asking voters to renew a $.002 sales tax (20 cents for every $100) dedicated to street preservation and improvements.

WHAT IS THE TRANSPORTATION BENEFIT FUND?

The Transportation Benefit Fund was created in 2016 when the city absorbed the former Transportation Benefit District into the city, assuming all of its rights, powers, and obligations.