Mill Creek council adopts ordinance to assume Transportation Benefit District powers
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Summary
The City Council voted unanimously to assume the rights, powers and obligations of the Mill Creek Transportation Benefit District under RCW 36.74, abolish the TBD governing board, and set an effective date; staff will later determine specific revenue rates and mechanisms.
The Mill Creek City Council voted 6-0 Jan. 6 to adopt an ordinance assuming the rights, powers, functions and obligations of the Mill Creek Transportation Benefit District under RCW 36.74. Finance staff summarized the prior steps taken by council, including a previous ordinance establishing the TBD (Ordinance No. 2025-940) and a resolution of intent published in advance of final action.
Finance Director Ermina Lombad told the council that state law authorizes TBD revenue sources such as a sales and use tax (up to 0.3%, with an additional optional 0.1% by simple majority), vehicle license fees, impact fees, and issuance of bonds. Lombad said adoption tonight would assume the TBD and allow the city to exercise those powers; setting specific tax rates or fee amounts would come in subsequent actions after assumption.
Council moved and seconded the ordinance to assume the TBD, including abolishing the TBD board upon assumption and setting an effective date. The motion passed 6-0. Council members asked and staff confirmed that no specific rate or percentage was being set tonight; those decisions will follow and require further council action.
Next steps identified by staff include publishing the ordinance as required and scheduling subsequent hearings or agenda items to select specific revenue sources or rates if council chooses to pursue them.
