Earlier in the city’s short history Maple Valley relied on money generated by the housing construction boom, but city officials and staff have long known that would not last forever.

According to City Manager David Johnston, the city is limited in what it can do to compensate for the changing market, and what it can do may not be the most popular tactic in a down economy.

“The only other option we have is to raise revenue,” he said.

And the revenue won’t be coming from the construction of new houses — a source the city had previously depended upon. The city is expecting 150 single family residential permits for 2011. While this is up from 125 from 2010 and 93 in 2009, it pales in comparison to 2005, when there was 452 permits.

“We’re not seeing as many houses bought and sold, and the ones that are being sold are at a far less value, so you’re seeing a volume and reduction that’s impacting our revenue,” Johnston stated. “We’ve had it good for about the first 10 to 11 years of this city’s history, but, finally it’s catching up to us.”

Consequently, this is dramatically affecting the cash flowing into the city’s coffers.

According to a presentation by Finance Director Tony McCarthy, the city anticipates $542,000 in real estate excise tax this year, a $145,000 drop from last year. In 2005, the city collected $1.5 million.

“The city and the citizens of this city…benefited in the good times,” Johnston said. “Those times are gone. If you want to have a certain level of service, we don’t have that revenue stream.”

Johnston said in order to pay for projects on the books such as Summit Park, which has a $19 million price tag, the city will have to find a way to increase cash flow into the city.

“The city doesn’t have any revenue for that,” he said. “The state has shut down its pork barrel financing projects like that. The citizens are going to have to invest in that city project. The only way to figure that is through debt-financing.”

Several proposals have been offered at City Council meetings on ways to bring in more money, including a property tax increase, a levy lid lift for operations, a bond issue for capital projects, a business and occupation tax and a transportation benefit district.

A business license fee has also been considered, but Johnston explained it would be cost neutral, meaning the fee would only cover city costs and not bring in revenue.

After the $125 million Tahoma School District construction bond failed in April Johnston does not believe any bond or levy vote would be approved.

Another option other cities have taken is a car tab fee, which does not require voter approval as long as it is $20 or less.

Johnston stated this one has the highest possibility of getting passed.

“More and more Washington municipalities are resorting to a car tab to supplement their capital budget, to use it for road repairs,” he said. “The logical approach is to have the people who own the cars maintain the road structure in the community. If there is one that may be discussed, it’s that one.”

At this point, Johnston said, it’s not likely for the coming calendar year.