Mill Creek — The Mill Creek City Council voted 6–1 on Nov. 25 to establish a transportation benefit district (TBD) covering the city and create a dedicated TBD fund to help pay for streets maintenance and operations.

Deputy city manager Laurel told council the streets fund has operated under a structural deficit since 2020, with the general fund transferring about $300,000 per biennium to avoid audit findings. Staff presented scenarios showing an initial $20 vehicle-license fee could generate roughly $300,000 annually — largely eliminating the current general-fund subsidy — with higher fees providing greater long-term relief but potentially triggering voter-approval requirements.

The council opened a legislative public hearing on the TBD, took no public testimony and then debated the ordinance. Council member Cavallari opposed the measure, saying the new fee came on top of recent tax increases: "I won't support it on that basis," she said. Mayor Holtzclaw and several other council members said the TBD is a narrowly targeted revenue tool to preserve streets and sidewalks as other revenue sources decline. "We don't have the funds to maintain the streets," the mayor said during debate.

Councilor (motion-maker) moved to adopt an ordinance establishing the TBD, adding chapter 3.24 to the Mill Creek Municipal Code and creating the TBD fund in chapter 3.5. After discussion on limits and next steps, the motion carried 6–1.

Council then unanimously directed staff to prepare a follow-up ordinance and legislation to allow the city to assume the powers of the TBD board (which requires an additional public hearing) and to draft vehicle-license-fee legislation setting the initial rates and timelines for increases. Staff said it generally takes about seven months to implement the initial fee and 24 months from that point before a fee increase would be allowed under the statutory schedule referenced in the presentation.

What happens next: Council directed staff to draft the ordinance to assume TBD powers, prepare fee legislation and schedule the required second public hearing; if adopted, staff would notify the State Department of Licensing and the city would begin collections on the timetable described by staff. The council did not yet set a specific dollar amount for any increase beyond the initial $20 scenario.