PASCO, Wash. – A new sales tax proposal could soon impact Pasco shoppers. City officials are considering a 0.1% sales tax to fund improvements to city streets.
Deputy City Manager Richa Sigdel explained that the proposed tax would equate to an additional dime for every $100 spent within the city limits. The revenue generated would be directed into a new transportation district.
Sigdel highlighted the city’s financial challenges, noting that traditional sources of funding, such as natural gas and landline telephones, have declined. Meanwhile, the cost of street maintenance has risen significantly.
To combat these issues, Pasco is looking to follow the example of nearby cities like Kennewick, Richland, Prosser and Walla Walla, which have implemented their own transportation districts.
Sigdel acknowledged the sensitivity surrounding fee increases, stating, “There’s a concern overall anytime we increase fees or impose fees, even in sales tax. And that is something that we’re really sensitive to.”
She emphasized the importance of the new revenue in maintaining Pasco’s roads, saying, “We’re really looking at pavement preservation and just maintenance of roads overall, and making sure that our roads do not have, are in good condition, that they don’t have a lot of potholes and they’re kind of fraying away at the edges.”
The topic was discussed at a recent city council meeting, where the city’s growth was also a focal point. Sigdel noted, “We’ve expanded by nearly seven square miles. And I think that, these are growing pains of a growing city.”
A vote on creating the new transportation district is scheduled for the next city council meeting on February 17. If approved, the district will be composed of council members who will determine any exemptions from the sales tax and decide which projects will benefit from the funding.
The city anticipates that the new tax could generate $2.3 million annually. Sigdel warned of the consequences of neglecting road maintenance, stating, “If you do not maintain, then your base structure starts degrading, which means that to fix it is going to cost a lot more down the line.”
