Car tab fees could go up for Maple Valley drivers to pay for road work

Maple Valley residents face either paying an extra $20 for their license tab renewals for road infrastructure or cuts in city park programs and other services.

Maple Valley residents face either paying an extra $20 for their license tab renewals for road infrastructure or cuts in city park programs and other services.

The Maple Valley City Council is considering a proposal for a transportation benefit district which would provide an estimated $320,000 annually towards maintaining, improving and preserving existing transportation facilities.

The proposal comes at a time when revenue from the city’s real estate excise tax, which is currently used to provide $300,000 for the asphalt overlay program, dropped from $2 million in 2006 to $700,000 presently.

According to the City Council agenda packet for its meeting Monday, the benefit district would divert the real estate excise tax revenue for the city’s debt service on the Maple Valley Legacy Place Site, which is currently taken from the general fund.

The general fund balance has also seen a drastic reduction since 2005. A general fund balance is the amount of funds the city ends a year with. The city’s general fund balance is currently at 30 percent.

But a financial forecast report from July has the percentage dropping each year until it reaches 10 percent by 2017.

If it were to drop that low, Finance Director Tony McCarthy has warned the city’s bond rating could be lowered.

Johnston has repeatedly stated in the past year how a transportation benefit district may be employed to help maintain the general fund balance, which is necessary in order to keep interest rates low should the city also resort to bond levies to pay for finance projects.

The transportation benefit district would apply to those living within city limits. Several types of vehicles, such as campers, farm tractors, mopeds and non-highway vehicles would be exempt from the fee.

According to the Oct. 22 agenda packet, the Washington State Transportation Commission has projected an estimated $38 billion shortfall for the $67 billion needed for statewide transportation improvements.

The City Council hosted a public hearing at its meeting Monday and voted to extend the hearing to Nov. 5 in order to provide residents the opportunity to provide input on the proposal.