Transportation Benefit District (TBD) Overview

What is a Transportation Benefit District (TBD)? 

A TBD is a district authorized by state law. The Port Townsend TBD was created for the sole purpose of funding repair, preservation, and improvement of streets in the transportation district (city limits). Port Townsend City Council formed the TBD on July 24, 2023, and acts as its Board of Directors, providing oversight to the fund. City Council has heard consistently from local residents that streets should be a priority.

A Comprehensive Streets Program has been developed over the last three years to address these concerns.

Why was a TBD proposed by the City? 

Our community has struggled to keep up with local street maintenance, especially in the face of declining state funding beginning around the year 2000. Cities now have to use local funds for street improvements instead of relying on state resources. Given our low housing density and a relatively high number of street miles, the current funding level is fiscally unsustainable. The TBD Board chose to put a 0.3% sales tax increase on the ballot to ensure all people who visit and shop in the city contribute to paying for streets. It passed with approximately 80% of the vote. This local sales tax will go into effect April 1, 2024 and expire in ten years unless terminated by the TBD Board.  The revenue from the TBD sales tax is expected begin funding transportation-related projects in May 2024, and is estimated to total $500,000 in the first year.  

How does a TBD support the Comprehensive Streets Program?

The Comprehensive Streets Program identifies the need to invest an additional $1.5M per year to address the backlog of transportation improvements. A TBD fund is a key source of revenue for reaching this goal. These percentages are approximations for the allocation of funds. Part of operating an efficient and effective streets program requires funding support services such as engineering, finance, and legal services, in addition to labor, equipment, and materials costs.

Street repair, preservation, and improvements critical to maintaining and improving our transportation system would be funded with a TBD. Maintenance and preservation work such as paving and hot patch pavement repair are new practices and take a long term care approach. Completing sidewalk gaps to support the mobility of all and making streets more inviting to bicycles and pedestrians helps create a balanced transportation system.

How will the TBD fund be used?

Funds generated would be used primarily for street repair and preservation given the current poor condition of most streets. Additionally, street improvements for walking, bicycling, and ADA upgrades would be included.

• 40 - 60%  Pavement repair, rehabilitation, and preservation of the City's 80+ mile street system. Note that any privately maintained streets are not eligible for funding.
• 20 - 40%  Grant match for projects in the Six-Year Transportation Improvement Plan. This investment leverages the potential for an average of $1.5 million annually in state and federal grants for streets.
• 10 - 20%  Sidewalks, ADA upgrades, and neighborhood traffic calming.

What other funds exist for transportation improvements?

A portion of the 18% Utility Tax is dedicated to streets. Other sources of funding include Real Estate Excise Tax for grant match, and Property Tax for ongoing operations and maintenance. Stormwater Utility funds work with streets to address drainage. The total street fund revenue is approximately $1.17 million as described in the 2023 budget.

Watch our Streets video on YouTube to learn more about Financial Sustainability for transportation improvements.