Mill Creek studies five property-tax and revenue scenarios, weighs utility tax and car-tab fee

City staff presented the Mill Creek City Council on Oct. 14 with five preliminary property-tax levy options for 2026 and a set of potential new revenue sources intended to close a projected structural gap in the general fund.

Finance Director Irmina reviewed the calendar and explained the mechanics of Washington’s budget-based property-tax system: counties supply assessed valuations, taxing agencies set levy amounts, and the county computes the levy rate. Staff reported that the citywide assessed value increased from about $6.4 billion to $6.7 billion — roughly a 5% rise — which, if the levy amount remained unchanged, would reduce the city’s levy rate per $1,000 of assessed value.

Council was shown five levy options that began from the 2025 levy amount of $4,400,000: a statutory 1% increase (an increment of roughly $44,236), a 1% increase plus $178,000 (keeping the levy rate roughly flat), a larger increase using about $1.1 million of banked capacity producing a levy amount near $5.5 million, and two still-larger bank-capacity options (an additional $1.5 million and roughly $1.8…