In Stanwood’s case, the primary on-going source of revenue for the Street Fund has been the gas tax (MVET). Since 2008 the gas tax has been insufficient to meet budgeted expenditures for street improvements. Transfers to the Street Fund divert money from other sources.
The city has supplemented the gas tax with transfers from the general fund and Real Estate Excise Tax (REET) Revenues. Previously, the city reserved REET funds for capital projects such as park improvements. Without the TBD, planned projects such as flood control measures, sidewalk improvements and street maintenance may be delayed.