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Council studies potential revenue options including business, utility and vehicle fees

2854012 · April 3, 2025
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Summary

Finance staff presented a matrix of potential revenue sources — business (B&O) tax, utility taxes, lodging and admission taxes, brokered gas tax and a vehicle license fee via a transportation benefit district — with preliminary revenue estimates and implementation notes for council consideration.

The Mill Creek City Council reviewed a staff matrix of potential revenue options on April 1 that included business and occupation taxes, utility taxes, brokered natural gas tax, regulatory business license fees, lodging and admissions taxes, gambling taxes, and a vehicle‑registration fee under a transportation benefit district.

The study session matters because council faces projected budget shortfalls in 2026 and staff said preliminary revenue choices would affect long‑range financial planning, annexation analyses and the city’s ability to maintain streets and other services.

Finance Director Irmina (presenting) grouped options into business and utility taxes, other excise taxes and other fees. She said a local business and occupation (B&O) tax applied at 0.2% to retail taxable sales — using the city’s 2024 retail taxable sales estimate of about $25.7 million — would generate roughly…

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