• In 2015 the City of Vancouver established a transportation benefit district (TBD), as authorized by state laws, chapters RCW 35.21.225 and RCW 36.73 to provide adequate levels of funding for transportation improvements and infrastructure in the City of Vancouver.
• Current City Code, VMC 3.40.070 (A), authorizes the Vancouver TBD to establish up to three-tenth of one percent sales and use tax, if approved by District voters.
• The state law authorizing the sales and use tax for transportation benefits districts (RCW 36.73.065) was recently amended by the legislature. The change included authorization for a TBD to levy one-tenth of one percent sales and use tax in the councilmanic manner.
• The City of Vancouver has an adopted Completed Streets Policy, and the additional dedicated funding stream in a form of the one-tenth of one percent sales and use tax would significantly enhance implantation of this policy in a manner that improves safety, mobility and accessibility of the City’s transportation system for all users.

Goal 1, Objective 1.1: Develop and maintain a safe, balanced and innovative transportation system that will meet the needs of future generations

Goal 6: Facilitate the creation of neighborhoods where residents can walk or bike to essential amenities and services – “20-minute neighborhoods”

The City of Vancouver created a transportation benefit district (TBD) in 2015 to generate additional funding for transportation infrastructure in the City. Though the TBD is a separate legal entity with a governing body separate from the City Council, the members of the City Council sit as the governing board of the TBD.

 At the time of the Vancouver TBD creation, state law defined the revenue options to fund TBDs as including councilmanic approval for vehicle license fees and a voted option for sales and use tax. During the 2022 legislative session, Senate Bill 5974 increased the maximum transportation benefit district sales tax authority from 0.2 to 0.3% and authorized the TBD governing board to impose 0.1% of the sales tax under councilmanic authority for up to 10 years.

The Vancouver Municipal Code (VMC) chapter 3.40 established the Vancouver TBD and its associated authority.  This code needs to be updated to incorporate the new authority granted to the TBD by the State in 2022 before the Vancouver TBD can consider implementing the new sales tax. The amendment to the municipal code falls under the authority of the City Council.

If the City Council approves amendment of VMC 3.40 to authorize the TBD to implement the sales tax, a separate, subsequent action by the TBD is required to implement the tax.  The first reading on that action is planned following the City Council meeting on October 24.

Because this new revenue is anticipated as part of the recommended City of Vancouver 2023-24 biennial budget, it is being brought forward to Council (to amend the VMC to authorize the TBD) and the TBD (to enact) in advance of City Council’s final action on the budget.  This sequencing and timing supports greater predictability in budget adoption and assures procedural compliance with the City Charter and Open Public Meetings Act (OPMA) for both the City Council and the TBD. 

The attached ordinance updates the relevant section of the VMC to reflect the recent change in state legislation.