• Header Image
    A dump truck works with another machine to scarify the roadway in preparation for repaving. There are construciton cones and two people dressed in high visibility clothes on the left side of the roadway.

    At their July 17 meeting, the Bellevue City Council formed a Transportation Benefit District. The City Council may decide to assume the District at a later date. This is an administrative step. The council may also decide to fund the District — separate discussions and additional public outreach would happen prior to any funding decisions.

    Timeline

    Initial discussions started during the 2023-24 budget process on forming a Transportation Benefit District to address a budget shortfall for Transportation maintenance that originated during the pandemic with the 2021-22 budget and was carried forward into the 2023-24 budget. Staff have been evaluating the potential of forming a district for several months, including adding Transportation System Maintenance Program to the City’s 2024-2029 Transportation Improvement Program (TIP). Information on the proposed timeline for forming the district can be seen below.

    • Transportation Benefit District Formation

      June 12, 2023
      Transportation Benefit District process kick-off
      July 10, 2023
      Public hearing for the formation of the benefit district
      July 17, 2023
      Council adopted an ordinance to form a Transportation Benefit District
      July 24, 2023
      Council adopted resolution to set a date and time for a public hearing to consider assumption of the District
      August-September 2023
      Public outreach about the benefit district
      September 11, 2023
      Public hearing for council assumption of the District
      Fall 2023
      Council may decide to take administrative steps to assume the District. Discussions on potential funding and transportation maintenance needs will happen in the future.

    How to get involved

    As part of the 2025-26 budget process, there will be further discussion on transportation needs. This may or may not include funding the Transportation Benefit District. More outreach will occur as part of these transportation maintenance discussions, including budget public hearings in Summer 2024.

    Public outreach about the Transportation Benefit District happened in Summer 2023, including multiple webinars, a survey, in-person events and public hearings.

    Past events

    • July 10 — Public hearing on the formation of the benefit district
    • August 8-September 30 — Survey open
    • August 9 — Tabling at Bridle Trails Night Out
    • August 12 — Tabling at Keep Bellevue Beautiful event in downtown
    • August 15 — Webinar #1
    • August 24 — Webinar #2
    • August 29 — Crossroads Farmers Market
    • August 31 — Stakeholder webinar
    • September 11 — Public hearing on assumption of the benefit district
    • September 20 — Webinar #3 (A pdf version of this presentation is available below under "Background materials)

    Frequently asked questions (FAQs)

    What is a Transportation Benefit District?

    A Transportation Benefit District is an independent taxing district that can be formed by cities and counties in Washington. They can be used for acquiring, constructing, improving, providing, and funding transportation improvements within the area of the district. Projects may also include operations, preservation and maintenance of transportation facilities. Chapter 36.73 RCW contains the rules and regulations for forming and operating the district. Bellevue’s Transportation Benefit District is governed by Bellevue City Council, shares the same boundaries as the city, and any funds raised by the district would be used within the city.

    How can Transportation Benefit Districts raise money?

    State law allows for Transportation Benefit Districts to raise money in several ways. In general, the funding options are either approved by the district's governing body or voter-approved. The governing body of the Transportation Benefit District is the Bellevue City Council, and they will determine the funding mechanism. Council-approved options include a 0.1% sales tax, a vehicle licensing fee, a building construction or land development fee, or a vehicle toll on city streets.

    A 0.1% sales tax increase would cost the average Bellevue household $20-30 annually. This figure was calculated using the latest U.S. Bureau of Labor Statistics’ Consumer Expenditure Surveys for the Seattle metropolitan area. The City’s calculation takes the average household size of 2.4 people and totals all tax-eligible spending before applying the additional 0.1% sales tax onto those expenses, providing an approximate range for the average Bellevue household. A vehicle licensing fee would start at $20 per vehicle per year.

    If the Transportation Benefit District is funded, what would the money be used for?

    A photograph with a street in the foreground, a green striped bike lane, and a curb ramp. In the background is a new, multistory office building.
    Northeast Spring Boulevard, a new mile-long, multimodal, east-west roadway being constructed in the Spring District, is an example of new infrastructure that will need maintenance funding in the future.

    In general, they would be used to restore the Transportation Department’s maintenance budget and fund maintenance for new infrastructure that has been added and will continue to be added to our growing city. For example, in the last four years, the city has added 27 traffic signals, 43 enhanced crosswalks and 150 traffic cameras, and had a 33% increase in crosswalks and roadway markings. If additional money is collected beyond what is required for maintenance, it is proposed to be used to fund ongoing capital programs that have extensive backlogs of work. These programs build new infrastructure throughout the city, including sidewalks in neighborhoods, traffic safety improvements, and more.

    How would the money be allocated?

    Funds collected through a Transportation Benefit District would be allocated through the regular biennial budget process. Every other year, the City Manager presents a preliminary budget to the City Council for feedback, discussion, consideration and eventual action. More information on the budget process can be found on the city’s Budgets webpage.

    Why is this funding needed?

    A photograph of a ramped sidewalk that has been patched with asphalt.
    Deferred maintenance has lead to a reduction in many maintenance programs, including sidewalk repair and replacement. The current sidewalk repair backlog is over half a million square feet.

    The Transportation Department’s maintenance budget was cut by $1.7 million in 2021 and $1.8 million in 2022 to help balance the city’s budget due to the financial impacts of the COVID-19 pandemic. Reductions were done in maintenance to preserve other programming and staffing. These cuts continued into fiscal year 2023-2024 due to other competing needs throughout the city. In addition, budget has not been allocated for the maintenance of new infrastructure. Concerns about the impacts of continuing to defer maintenance were raised during the 2023-2024 budget process. Forming a Transportation Benefit District was discussed as a potential future solution. 

    Continuing to defer maintenance and not budgeting for the maintenance of new infrastructure will lead to increased maintenance costs in the future caused by the failure of sidewalk and pavement infrastructure and increased complexity of vegetation management. The rapid growth of our city is also leading to an increasing backlog for our re-occurring capital programs that seek to address safety, accessibility, connectivity and travel reliability.

    What is the process for creating a Transportation Benefit District?

    There are three main steps to generating new revenue through a Transportation Benefit District. The council must first approve the formation of the district. This is followed by the council assuming responsibility of the district so they can address district business during a regular council meeting. The final step is to authorize the funding of the district.

    How will the Transportation Benefit District be kept accountable?

    The district must publish an annual report, indicating the status of transportation improvement costs, transportation improvement expenditures, revenues, and construction schedules, to the public and newspapers of record in the district (RCW 36.73.160). More information on this can be found on the Municipal Research and Services Center’s webpage on Transportation Benefit Districts.

    Background materials