The city of Langley is seeking another way to raise revenue in the wake of its critical financial situation.

This week, Councilmember Chris Carlson brought an ordinance creating a transportation benefit district to the council. A recommendation from the city’s citizen-led Finance and Personnel Legislative Commission, the transportation benefit district would enact a 0.1% sales tax to help fund the cost of electricity for streetlights and for matching funds for transportation grants.

As Carlson pointed out, in the 2023 and 2024 budgets, the city council authorized transfers of $24,500 from the general fund to the streets fund to pay for streetlight electric utilities which could have instead been funded by revenue from a transportation benefit district. Public Works Director Randi Perry has said that by the end of 2025, the streets fund will no longer be able to cover operational costs.

“It is sad, but there’s an opportunity,” Carlson said. “There’s ways for us to brighten that future.”

The new district will generate $51,648 annually based on 2024 projected eligible sales. With a simple majority voting in favor of a ballot proposition, however, it has the potential to raise an additional 0.2% of sales tax which would generate an additional $103,296.

In his memo to the council, Carlson highlighted that more than 110 other municipalities in the state have established transportation benefit districts.

Funding for transportation has been dwindling in recent years as costs have continued to rise, Carlson explained during the council meeting. Primary sources of revenue decreased 10% over a span of just five years, and costs through inflation went up 25% in the same time period.

The city council will serve as the district’s governing board, acting as a separate legal entity.

The first reading of the ordinance for the new district was unanimously approved.

Jan. 16 is the deadline for notifying the Department of Revenue of sales tax changes taking effect April 1, so the goal is for the council to vote on the 0.1% tax at a meeting set for Jan. 13.