Transportation Benefit District (TBD)

APRIL 1, 2025 - Celebrating One Year of Voter-Approved Transportation Improvements!

Read the 2024 Annual Report

Transportation benefit District overview

What is the Transportation Benefit District (TBD)? 

City Council has heard consistently from local residents that streets should be a priority. The Port Townsend TBD was created for the sole purpose of funding repair, preservation, and improvement of streets in city limits. Port Townsend City Council formed the TBD on July 24, 2023, providing oversight to the fund.

A Comprehensive Streets Program has been developed over the last three years to address streets improvements, and the TBD utilizes the Comprehensive Streets Program as a guide for prioritizing projects.

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 funding level for streets was fiscally unsustainable. City Council 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 77% of the vote. This local sales tax went into effect April 1, 2024 and will expire in ten years unless terminated by Council.  The revenue from the TBD sales tax is estimated to total $1 million each 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 over the next 30 years. A TBD fund is a key source of revenue for reaching this goal. Street repair, preservation, and improvements critical to maintaining and improving our transportation system are now funded with a TBD. Maintenance and preservation work such as paving and hot spot 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 is the TBD fund being used?

The Annual Report is a great source of information for past and current projects funded by the TBD and their scope. Funds generated are used primarily for street repair and preservation given the current poor condition of most streets. Additionally, street improvements for walking, bicycling, and ADA upgrades are 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 will leverage $7 million in state and federal grants for streets over the next 2 - 3 years.
• 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. 

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