The City Council has, for the first time, approved a transportation policy which allocates minimum of $1.1-million annually for street maintenance. The policy, when combined with other legislation, will mean an annual $20 car tab fee.
In addition to the non-binding transportation policy, the Council Monday evening established a Transportation Benefit District with the eventual goal of adding a $20 car tab fee, and increased the current solid waste utility tax from 3/4-percent to 12-percent.
The city has fallen behind on street maintenance year after year, not even funding any street maintenance at all for 3 of the last 7 years. The city funded only $185,000, on average, for repairs.
In order to fix the city’s streets, City Public Works Director Fred Buckenmeyer devised the plan approved by the Council, which will draw $300,000 from the car tab fee, $200,000 from the utility tax, $200,000 in general tax revenue, $250,000 in Real Estate Excise Tax revenue, and $150,000 from funds compensating the city for heavy truck traffic in connection with the delivery of so-called prilled sulfur to the Port.
The Transportation Policy is set in a non-binding Transportation Policy suggested by Council member Ryan Walters, who had expressed concern about a past practice of reducing spending on street maintenance in slow economic times.
The policy had to be non-binding because the City Council’s spending is actually set in the city’s budget and could be changed at any time. The $300,000 income expected from the $20 car tab fee, however, must be used for street maintenance.
What the Council could not do and did not do Monday was approve the $20 car tab. It must be done by the Board of the newly created Transportation Benefit District, which will be made up of the City Council. The first meeting of the TBD Board is expected to happen as early as August 18, once other paperwork is completed, and it is exected that the $20 car tab fee will be approved then..
“Ooh, my gosh, what have we done,” was the reaction from Council member Erica Pickett as she looked through legislation creating the Transportation Benefit District. The TBD ordinance actually creates a new governmental agency with jurisdiction only inside the city’s borders. It is the TBD that has authority to raise car tab fees as high as $20 without a public vote and up to $100 with a public vote.
In answer to questions from Council member Liz Lovelett, Budkenmeyer said the new TBD will have some expenses, but he said he hasn’t established just how much, but will include a one-percent administrative fee payable to the state Department of Licensing, which collects car tab fees. The city’s insurance will go up slightly, he said.
The solid waste utility tax hike will add 60-cents a month for residents using a 20-gallon garbage can, bringing the monthly cost to $7.84 from the current $7.24. The tax will go into effect in August and will be visible on city utility bills starting in September.
Council member Ryan Walters recognized the $1.1-million plan might not fix all the streets, but added “This isn’t a perfect plan, but it’s okay.”