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North Bend Transportation Benefit District No. 1

Proposition No. 1
Sales and Use Tax for Transportation Improvements

The Board of North Bend Transportation Benefit District No. 1 has adopted Resolution No. 01-2011 concerning a proposition to finance transportation improvements.  This proposition would authorize a sales and use tax at a rate of two-tenths of one percent (.2%) of the selling price in the case of a sales tax, or value of article used in the case of a use tax, for a period not exceeding 10 years, and dedicate that tax to repaying North Bend Transportation Benefit District No. 1 indebtedness incurred to finance street and related improvements specified in Resolution No. 01-2011.  Should this proposition be approved? 



North Bend voters are asked to authorize dedicated funding for transportation needs by increasing the sales and use tax by two-tenths of one percent (0.002). An increase of 0.002 on taxable spending of $100 amounts to 20 cents. The increase would generate approximately $400,000 per year for street reconstruction, intersection improvements, construction of walkways, new signal installation, and street resurfacing to preserve their condition and reduce future maintenance costs. This increase is requested by the Board of the North Bend Transportation Benefit District (TBD), governed by the North Bend City Council members acting as a separate board of directors. 100% of the revenue generated by the tax is dedicated to transportation projects and can be used for no other purpose. All of these improvements will occur exclusively within the City of North Bend. A detailed list of the improvements, their cost and priorities are contained in TBD Resolution 01-2011 and the City of North Bend 6-Year Transportation Improvement Program and are available upon request from the North Bend City Clerk. If approved, this local sales tax will expire in 10 years unless sooner terminated by the TBD.

The City of North Bend established a Transportation Benefit District (TBD) to fund needed transportation improvements and repair of deteriorating streets and walkways.  The city also needs to replace funding lost from shrinking State and Federal transportation grants and loans.  This proposition helps address these transportation deficiencies and creates a revenue source that has a relatively small impact on local taxpayers. 

The proposed sales tax increase of two tenths of one percent (0.002) would raise an estimated $400,000 annually during the next 10 years for the exclusive purpose of funding transportation infrastructure improvements in the city.  The tax does not apply to the cost of groceries, prescriptions or gasoline.  It will cost $10 for every $5,000 spent on products or services subject to sales tax.

North Bend is fortunate to have a vibrant retail core drawing tourists, recreational visitors and shoppers from around Puget Sound.  A significant number of these visitors make purchases in North Bend and it is appropriate that those who impact our city streets contribute to our transportation solutions.  This proposition will enhance construction and repair of roadways and maintain our quality environment, while equitably sharing the cost among those that benefit from and use our facilities. 

Currently North Bend, along with all of its neighboring communities, enjoys the lowest sales tax rates (8.6%) in King County. With the passage of TBD Prop 1 we will lose this edge, leaving our neighboring communities with a competitive advantage. The North Bend City Council is to be commended on its exceptional stewardship of our community’s limited resources. However, taking more money out of the private economy at a time that our local businesses are struggling against a lingering recession, is not good policy.

The TBD’s proposed projects like lighted cross walks and handrails are nice improvements, for some day, but they do not address concerns that many of our business owners have for bringing in more business now. We should be focused on growing our tax base by encouraging more residences and businesses. Raising our sales tax rate places downward pressure on economic activity and upward pressure on our cost of living. Let’s not fall for the ‘…it’s only one less Latte per week or one less pizza per month.’ reasoning again that has gained Washington the dubious ranking of 5th highest sales tax in the Nation. Please vote No on Prop 1.

Don’t be fooled! The “Statement Against” author doesn’t live in North Bend and won’t vote on this proposition. Those who live in the City will see critical transportation upgrades to their roads. Issaquah and Bellevue have a 9.5% sales tax rate. North Bend's rate will only be 8.8%. The sales taxes collected in the City are paid in large part by those coming here to shop. Let them help us fund our street improvements!

Statement submitted by: Fritz Ribary and Sherwood Korssjoen  •

No rebuttal submitted

Statement submitted by:

Mark Dilger  •

Simple Majority (RCW 36.73.065)

1249 en-US Production

TTY: Relay 711

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