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Community News 3/28/08
City to investigate possible car tab tax
By Mike Huffman
Spokane Valley News Managing Editor


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That pothole on Argonne? That crack in the pavement on Sprague?
Unless the city of Spokane Valley can come up with some answers, they may be the rule rather than the exception.

For that reason, the City Council is taking a hard look at some potentially unpopular options in order to fund ongoing street repairs beyond 2009.
Even Spokane City Council Member Al French stopped by to weigh in on the issue.

“We’re constantly playing catch-up when it comes to road repairs,” French said alluding to Spokane’s estimated $8 million annual tab to keep up with potholes, cracked pavement and snow removal. “We need a permanent solution.”

While French’s idea – a street utility tax – hasn’t been approved by the Washington state Legislature, another option has been. Municipalities can collect up to $20 – without voter approval – per car tab renewal in order to supplement their road funds.

With Spokane Valley’s budgeted road money disappearing into a $2.3 million deficit in 2010 – and that number doesn’t include an additional $4 million a year that is recommended to make necessary improvements to keep streets maintained – the idea of a tax benefit district (TBD) where the car tab fee would be collected is starting to look better and better all the time.

Last year, the city of Spokane Valley’s street fund was budgeted at $4.2 million.

“It’s a difficult situation,” Mayor Richard Munson said. “But if we got a TBD passed on the ballot in November we could start collecting the money by mid 2009.”

Munson, who sits on the council Finance Committee, said there has been no discussion yet on how much the car tab fee would be – “That comes next,” he said – but he did emphasize that the public would get the chance to vote on the matter even if the amount fell below the $20 threshold. According to the city’s finance department, a $20 fee in Spokane Valley would raise between $1.2 million and $1.4 million a year – still not enough to close the gap in the road fund.

Deputy Mayor Dick Denenny said he supported the idea of further investigating the car tab tax, but doubted voters would support it in November.

“I struggle with it,” Denenny said. “The politically reality is, the mental picture of a car tab tax in this community is just not positive.”

In 1999 voters, with 56-percent approval statewide, gutted the Motor Vehicle Excise Tax by passing I-695, which reduced car tab taxes to $30. Earlier this year, Spokane County commissioners voiced the possibility of a car tab fee to help pay for the north-south freeway, and were immediately chastised in an e-mail by Tim Eyman, the initiative’s author.

“It’s despicable…to disrespect and disregard the voters’ clear mandate,” Eyman wrote on Jan. 22.

Nevertheless, the city has to do something, said Council Member Bill Gothmann.

“I don’t think we have any choice,” he said.

Council Member Gary Schimmels said the depletion of the road fund and the lack of revenue is a “universal problem” across the state. For that reason, council members perked up when they heard of French’s efforts to lobby the Legislature to give cities the option of levying a street utility charge as an ongoing funding source for road maintenance.

French said such a fee is equitable, cannot be raided by politicians for other uses and could be adjusted for inflation. He said that he believes most citizens would be willing to pay $10 a month to ensure the longevity of their roads.

“Ten dollars a month is chump change compared to the cost of a realignment,” he said.


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