In the heart of Sequim, city officials gathered to discuss the future of transportation funding during the City Council Work Session on April 14, 2025. The atmosphere was charged with anticipation as council members reviewed the intricate web of financial resources that support the city’s maintenance and capital projects.

The discussion revealed that the general fund plays a crucial role, covering 85% of the $1.2 million maintenance and operating budget. However, the Transportation Benefit District (TBD), established in 2008, is pivotal as it contributes approximately 14% of the capital project funding through a 0.2% sales tax collected within city limits, generating about $1 million annually.

City officials highlighted the importance of transportation impact fees, a one-time charge imposed on developers to help finance new or expanded projects necessitated by growth. This fee contributes around $60,000 each year. Additionally, the Real Estate Excise Tax (REET) funds, derived from property sales, add another $800,000 to the budget, with each of the two REET funds generating a quarter of 1% tax.

A significant portion of the funding for 2025 transportation projects is expected to come from grants, with approximately 74% sourced from federal and state funds. This reliance on grants underscores the city’s strategy to secure financial support for essential projects. Among the seven funded projects for the year are three pavement rehabilitation initiatives totaling $1.9 million, a $1.2 million intersection project, and curb ramp replacements costing $855,000.

However, the council also faced the stark reality of future funding challenges. An estimated $60 million worth of unfunded projects looms on the horizon, including 12 street projects and various intersection and pedestrian improvements. These projects, while not immediately urgent, highlight the ongoing need for strategic planning and funding acquisition.

The meeting also touched on the uncertainty surrounding current grant funding, particularly a significant $16 million federal RAISE grant that is currently under review. City officials expressed concern about potential delays in funding approval, which could impact the timeline of several key projects.

As the session concluded, the council reaffirmed its commitment to advancing the transportation plan and actively pursuing additional funding opportunities. With one application pending, the city remains hopeful for continued progress in enhancing its transportation infrastructure, ensuring that Sequim’s roads and pathways meet the needs of its growing community.