Funding for transportation infrastructure projects in Port Townsend could receive a boost if the city decides to  impose a car tab fee for city residents.

At a recent meeting of the Port Townsend Transportation Committee, Public Works Director Steve King said the city could look to create a Transportation Benefit District (TBD) to help pay for its lengthy list of transportation improvement projects.

Commonly referred to as a “car tab” fee program, the Transportation Benefit District allows cities to impose car license fees of up to $20 at first.

The fee can be raised to $40 after the initial fee has been in place for two years. The maximum allowable licensing fee is $100, but all fees over $50 would require a public vote with a simple majority.

“The funds can only be used for transportation purposes, they’re very specific,” King said. “The use of funds must be applied to a priority project list and that project list must be kept up to date.”

“TBDs can be formed to sunset if you wish, after a project list is complete, or the project list can continually be updated and continue on,” King added. “It’s hard to imagine that projects will ever go away; we seem to have a massive backlog of projects.”

King explained that TBDs can be administered by multiple agencies by creating a board.

“A good example of how these funds could be used would be augmentation of WSDOT investments,” King said. “Grant matching for capital projects; they’re a great funding source for leveraging capital projects like the city’s match for Discovery Road for example — which we are currently borrowing money for.”

A portion of the Discovery Road project — which will reconstruct the roadway and add curbs, enhanced crosswalks, stormwater drainage and treatment, lighting, and intersection improvements between Rainier Street and McClellan Street — was recently selected for grant funding from the state Transportation Improvement Board. The project was awarded more than $2.6 million through the board’s Urban Arterial Program. The total cost has been estimated at more than $5.2 million and would require a local match of
49.6 percent from the city, to the tune of about
$2.5 million.

City officials estimate that based upon 9,417 vehicles being driven by residents within city limits a potential transportation district could bring in:

$186,000 per year from a $20 license fee;

$372,000 per year from a $40 license fee;

$466,000 per year from a $50 license fee; and

$932,000 per year from the maximum allowable $100 license fee.

Subject to voter approval, the city of Port Townsend could also propose a
0.2 percent sales tax to benefit transportation projects in town. That would bring in an estimated $550,000 annually.

The next virtual meeting of the Council Transportation Committee will be held at
3 p.m. Wednesday, Jan. 20.

For more information, visit cityofpt.us/citycouncil/page/agendasminutesvideos.