Lacey City Council tees up transportation tax renewal for February ballot 

The City of Lacey is going to ask voters in February to renew a sales tax that has funded more than $28 million in transportation improvements since 2017. 

Without renewal, the city would lose a major source of street maintenance funding when the tax expires in 2027. 

The Lacey City Council voted unanimously to place the measure on the special election ballot during a meeting on Nov. 2. The council adopted Resolution 1189 after reviewing the renewal during four work sessions this year. 

The measure asks voters to extend the existing 0.2 percent sales and use tax for another 10 years. The tax funds the Lacey Transportation Benefit District (TBD), an independent taxing district authorized under Washington state law and governed by the city council. The measure will be on the Feb. 9, 2027, ballot.

Lacey voters first approved the tax on Feb. 14, 2017, and collections began in July 2017 The tax generates an average of about $3.8 million a year, according to a city staff report. The same report estimates the city needs about $4 million a year to preserve its current pavement condition rating. 

However, cities have limited options for funding street maintenance and, unlike counties, they have no dedicated road tax. State and federal maintenance funding has also declined as repair costs continue to rise. 

Repair record 

Since 2017, Lacey has collected $29,655,191 in TBD revenue and invested $28,045,149 in transportation improvements. The money has funded 22 projects involving more than 140 roadways in northern, central and southern Lacey. 

The projects included 70.3 miles of paving and 96,000 tons of asphalt. Workers also applied 152,550 square yards of slurry seal, completed 29.3 miles of crack sealing, repaired 1,950 sidewalk panels, and installed 27.5 miles of pavement striping and 49,000 raised pavement markers. 

Assistant City Manager Shannon Kelley-Fong highlighted pavement rehabilitation on College Street and Yelm Highway, and improvements on Carpenter Road. City data shows an average pavement condition index score of 84.6 in 2025. 

Kelley-Fong said the rating places Lacey in the 90th percentile compared with similar cities nationwide. 

City officials said preventive maintenance costs less than major repairs. A slurry seal costs $4 to $6 per square yard, compared with $42 per square yard for a 3-inch grind inlay and $105 per square yard for reconstructing a collector street. 

The ballot measure retains the Pavement Management Program language voters approved in 2017 and adds wording identifying the measure as a renewal. If approved, the revenue would continue to pay for resurfacing, patching, sidewalk repairs and curb ramp improvements. 

Deputy Mayor Malcolm Miller said the renewal wording matters because voters could mistake the measure for an additional tax. He also noted people who come to Lacey for work or business contribute to the revenue through taxable purchases. 

The resolution states the tax applies to shoppers who use city roads, in addition to Lacey households. 

Election outreach 

Council member Kim Sauer asked how the city intends to explain the measure before the February election. 

Kelley-Fong said the city wants voters to know that visitors also pay the tax. According to the staff report, the outreach materials will be informational only. 

“We do have a communications plan … and our goal is to get information out to community members on how the Transportation Benefit District has improved our roadway system and maintenance for the last 10 years,” Kelley-Fong said. “And so we are working on getting that information out to community groups, HOAs, also our advisory boards.” 

Households are also going to receive informational flyers, and the city plans to post updates on social media. The staff report said outreach includes presentations to stakeholder groups and website updates through February.