Transportation Benefit District has first meeting
The Mercer Island Transportation Benefit District, an independent taxing district governed by the City Council, met for the first time on Nov. 17. On the agenda was adopting bylaws and approving a $20 annual car tab fee.
According to the proposed bylaws, regular board meetings will be held at 6 p.m. on the first Monday of April of each year and the first Monday of October of even-numbered years.
The City Council created a Transportation Benefit District on Oct. 20, 2014. State law requires a majority vote of the TBD Board to establish a fee, which is capped at $20 without voter approval. In order to increase the fee, the state legislature would need to increase the limit set in RCW 82.80.140(2)(a) and the Mercer Island TBD would need to adopt a new ordinance establishing the higher fee, according to the meeting agenda.
After the TBD Board enacts an ordinance imposing the fee, the Department of Licensing can begin collecting it six months later. If the fee is enacted on Nov. 17, it would start to be collected on May 1, 2015.
“TBD monies would most likely be used to fund arterial street projects contained in the City’s 2015-2020 Transportation Improvement Plan (TIP) and beyond,” said Finance Director Chip Corder.
The city estimates a $20 vehicle license fee will raise approximately $350,000 per year. After administrative costs (mostly audit and insurance costs), approximately $335,000 per year will be generated for transportation improvement purposes.
Update: The TBD governing board, which is the Mercer Island City Council, passed the $20 car tab fee at its meeting on Nov. 17.
Water utility rates will rise , money set aside for repairs, updates
At its Nov. 13 meeting, the Mercer Island Utility Board unanimously endorsed creating a $550,000 fund for a water advisory action plan in coming years.
The City Council discussed the placeholder and finalized utility rates at its Nov. 17 meeting, after the Reporter deadline.
In October, the board approved a $250,000 amount in the aftermath of the ‘boil water’ advisories.
Since then, city maintenance staff, with the state Department of Health (DOH) and Confluence Engineering, has developed an action plan that would require another $300,000 more than the original estimate.
The $550,000 would fund two capital improvements required by the Department of Health, including upgrading all air-vac vaults ($500,000) and installing nine additional water sampling stations ($50,000).
After these capital improvements are completed in 2015, the $550,000 in annual funding would potentially be used to install a permanent, automated chlorine injection system, if deemed cost effective, or invest in permanent, mechanical reservoir mixers ($100,000), install intelligent, automatic flushing and monitoring stations ($50,000 per station) and/or enhance the water main capital replacement program ($550,000).
If the Council sticks with the $250,000 amount, utility rates will go up 7 percent in 2015 and 5.5 percent in 2016. The $550,000 option will raise rates 8 percent in 2015 and 7 percent in 2016.
Update: The Council voted 5-2 to go with the $550,000 option at its Nov. 17 meeting.
