The Newcastle City Council is exploring an opportunity that would generate revenue for street and sidewalk improvements in our community. The establishment of a Transportation Benefit District (TBD) would allow the City to collect funds for transportation enhancements through vehicle licensing fees.

State law authorizes cities to form TBDs, which function as independent taxing districts. The most common TBD funding source is vehicle licensing fees. TBDs can establish an initial annual $20 fee per vehicle. They could choose to increase that fee to $40, but only after that fee has been in effect for at least two years. It could go up to $50, but only after the $40 fee has been in place for at least two years. Any fees above $50 would require voter approval. 

City staff estimates a $20 license fee would generate about $185,000. The funds must be used to preserve and maintain transportation infrastructure, improve public safety, and implement projects identified in the City’s Transportation Improvement Program. That would allow the city to invest in new or existing projects to enhance streets and sidewalks. The revenue would also contribute to the maintenance of critical transportation infrastructure, including costs for snow plowing and street sweeping.

For now, the City Council is simply approaching the question of whether or not to form a TBD. That must come before any decision to establish fees or taxes. The City Council indicated they wanted to hear from the community before moving forward, so they’ve scheduled a February 2 public hearing to collect feedback. View the meeting details below for information on how to participate.

To be clear, the matter before the Council is whether or not to establish a TBD. Creation of such a district DOES NOT necessarily impose a fee or tax. It simply gives the City the option to do so. 

The Newcastle City Council will meet at 5:30 p.m. for a closed executive session. The public portion of the meeting starts at 6 p.m. To see what the Councilmembers will discuss, view the full meeting agenda packet here.