City: Chehalis transportation funding brings millions in outside investment to community

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Chehalis voters will be asked this November to renew the city’s existing Transportation Benefit District (TBD) sales tax at the same rate, not approve a new tax, a news release from the city emphasized this week.

One benefit of TBD funding is its ability to help the city compete for millions of dollars in state and federal grants, the release stated. Many transportation grants require cities to contribute local funding toward a project before state or federal agencies will provide the rest. The city’s voter-approved TBD provides a dedicated source of transportation funding that can be used for those required matches, according to the release.

Chehalis voters originally approved the TBD in 2017. The existing 0.2% sales tax is dedicated to streets, pedestrian safety projects, traffic congestion relief and matching funds for grants. The city is asking voters to renew the TBD for another 10 years at the same 0.2% rate, or 2 cents on a $10 purchase. The renewal will appear on the Nov. 3 general election ballot.

Since the TBD began in 2017, it has raised approximately $11.2 million for transportation improvements and helped the city leverage an additional $12.9 million in state and federal grants, according to the release.

“Having local funding available puts Chehalis in a much stronger position when we compete for grants,” Public Works Director Lance Bunker said in the release. “Instead of asking local taxpayers to cover the entire cost of a major project, we can use those dollars to bring additional transportation funding into our community.”



One example is Phase I of the Downtown Rejuvenation Master Plan. The Washington state Transportation Improvement Board has committed $4 million toward the project, with approximately $4.11 million in local TBD funding helping provide the required match. Together, that creates an investment of more than $8.1 million in downtown transportation and infrastructure improvements.

The city also received a $1.75 million Washington state Department of Transportation grant for Safe Routes to School improvements. The project will add sidewalks, ADA-accessible curb ramps, pedestrian crossings and other safety improvements connecting local schools, parks and youth recreation facilities.

TBD funding provides the cash flow needed for the city to advance the project and receive reimbursement through the grant, the release stated.

TBD funding also helps position Chehalis to pursue major projects that would otherwise be difficult for a city of approximately 10,000 residents to fund locally. The city has secured $3 million in WSDOT grant funding to advance replacement of the Chamber Way Rail Bridge, in addition to $242,000 previously awarded for a feasibility study. Another $3 million is anticipated during the 2027-2029 biennium.

More information about the Transportation Benefit District and planned transportation projects is available at https://tinyurl.com/4dphbts2.