MOSES LAKE — Moses Lake’s newly created Transportation Benefit District (TBD) is leaning in the direction of imposing a $20 vehicle licensing fee.

The Moses Lake City Council approved an ordinance to create the TBD, which consists of councilmembers, at a Dec. 27 council meeting. Washington law gives city and/or county governments the ability to create a TBD and use the funds generated through a number of different avenues, including the imposition of an additional vehicle licensing fee and a sales tax increase, to fund transportation projects. Out of the 281 cities in Washington, approximately 90 have moved in the direction of creating a TBD.

During a Tuesday night meeting the board discussed imposing a vehicle licensing fee of $20, which the board can do without a public vote. City Manager John Williams explained the fee would go into effect 180 days after it is approved by the board. He said the city could expect a net gain of $333,000 in a one-year collection period. The board has the ability to bump the fee up to $40 after two years. Any fee above $40, however, would require a referendum vote of the people.

Another option discussed by the board was the imposition of a0 .20 percent sales tax, which would require a simple majority via referendum vote to insitiute.

“The state distribution on regular sales tax right now, there is 1 percent that goes to the local entities. 0.85 percent of that goes to the city. 0.15 (percent) goes to the county, even if collected within the city,” Williams told the board. “This (0.20 percent sales tax) is not subject to that. The full 0.20 (percent) comes fully to the city. No one else gets a cut of that.”

A major sticking point for several members on the board was the cost that comes with putting the 0.20 percent sales tax increase on a ballot. If the board went solely in the direction of the sales tax increase a loan would have to be given to the TBD, because the board would not be funded at that point and would not have funds to draw from to place the measure on the ballot. Williams estimated it would take $3,000 to $10,000 to place the measure on a ballot.

Councilmember Bill Ecret expressed concern about the board taking a loan to have the measure put on the ballot and the voters striking it down.

“As councilmembers it is our job to be good stewards of the money. And to start off with a $10,000 loan, or more, to this board to run an election that may fail, I think is not being very good stewards of the money,” he said.

Councilmember Mike Norman suggested instituting the $20 licensing fee first, which would give the board monies in the future to fund putting the 0.20 sales tax increase measure on the ballot.

“I think it’s a little more prudent to put the $20 tab fee in place now. It does two things: it starts building some money to actually run the election for the .2 percent sales tax increase, rather than having to take a loan from the city, and number two I think if anyone on this board has driven around on the streets here in the past few days, I see our street repair budget getting busted really badly,” he remarked.

City staff will prepare a resolution for the $20 licensing fee and bring it back to the board for further discussion.

Richard Byrd can be reached via email at city@columbiabasinherald.com.