The Lynnwood City Council stopped short of imposing a $20 car tab fee at Monday night’s meeting.

However, they did approve the creation of a Transportation Benefit District by a vote of six to one.

The next step is to decide how to fund transportation projects as part of the district. It will either be a vehicle registration fee or a  sales tax increase. (Anything other than a car tab fee of $20 or less would require a public vote.) A date has not yet been set to determine the fee structure.

Councilman Jim Smith was the lone opponent of the Transportation Benefit District.

“The city needs to go on a fiscal diet and not add more taxes and fees,” he said before casting a “no” vote.

The measure passed with one amendment by Councilman Mark Smith — that no less than 20 percent of the funds be spent on non-motorized transportation elements (in other words, more sidewalks and trails).

“That would mean a paradigm shift in our thinking about transportation,” he said.

Council members wanted to get a TBD on the books before Snohomish County, otherwise they would be preempted from doing so.