Transportation Benefit District (TBD)

What is a transportation benefit district?
The City Council created the Shelton Transportation Benefit District (TBD), a quasi-municipal taxing jurisdiction authorized by state law to fund street maintenance. State law authorizes cities and counties to form transportation benefit districts. TBDs can raise revenue for transportation projects through either sales taxes or vehicle license fees.

How was the transportation benefit district established?
In 2015, the City of Shelton established the District in our Municipal Code. The City Commission passed Ordinance 1869-0315, acknowledging the lack of available funds to improve, preserve, maintain, and operate our essential transportation infrastructure.

Shelton voters approved a sales tax increase of 0.2% (two-tenths of one percent) for 10 years to fund street maintenance projects within City limits. Revenues collected from this additional sales tax levy are held in separate accounts and used only for authorized street maintenance projects.

View ordinance 1869-0315


Who governs the district?
The City Council serves as the governing body of Shelton's Transportation Benefit District. They oversee activities, expenditures, and revenues. All business for the TBD occurs during City Council public meetings.

VIEW THE 2023 TRANSPORTATION BENEFIT DISTRICT ANNUAL REPORT

What is the purpose of the TBD?
The purpose of Shelton's TBD is to:
  • Improve and protect long-term investments in transportation infrastructure
  • Reduce the risk of transportation facility (roads, sidewalks, etc.) failure
  • Improve safety
  • Avoid more expensive infrastructure replacements in the future
  • Reduce congestion or stem an increase in congestion caused by failing City streets
What projects has the TBD funded?
Shelton's TBD has been used to fund many transportation-related projects fully or partially over the last decade. TBD funding has been used for maintenance as well as capital projects, including:
  • Western Gateway paving and pedestrian improvements on Railroad Avenue between Pacific Court and 8th Street
  • Safe Routes to School projects by Evergreen Elementary and Shelton High Schools
  • Local neighborhood paving projects, such as Capitol Hill paving projects on Fogarty Avenue, East Poplar Street, Beaver Street, and East Fir Street
  • Yearly pavement maintenance projects throughout Shelton, such as chip sealing or filling potholes
The interactive map below has more information about paving and chip seal projects completed by the City, using TBD funds:


Why was the transportation benefit district established?
City transportation infrastructure quickly ages and dedicated street and sidewalk maintenance funding is needed. Transportation infrastructure is one of our most valuable investments, and deferred maintenance only drives repair costs higher. State and federal funding for the maintenance and preservation of City streets has been reduced over the years. While revenues have decreased, costs continue to rise, making it difficult for the City to adequately preserve and maintain streets and sidewalks.

What are the benefits of the TBD?
Benefits of the TBD include:
  • It's more equitable - sales tax is paid by both residents and visitors alike
  • Provides a dedicated source of funding for street-related projects and maintenance
  • Better balance of proactive maintenance versus reactive projects