Mill Creek council approves $20 vehicle license fee to shore up streets fund, 6–1
January 14, 2026 | Mill Creek, Snohomish County, Washington
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The Mill Creek City Council voted 6–1 to adopt an ordinance imposing an annual vehicle license fee through the city’s Transportation Benefit District, with collection to begin about 180 days after ordinance adoption.
Finance Director Ermina Lambad told council the fee is authorized by RCW 36.73.065 and that the proposal would assess $20 per registered vehicle for the first 24 months. Lambad estimated the $20 fee could raise roughly $295,000 annually for Mill Creek (with partial year collections expected in the first year because of the 180‑day implementation lag). If the council later raises the rate to $40 per vehicle after the initial 24 months, revenues would increase accordingly; the RCW also allows higher limits subject to council action and potential referendum rules.
Council debate centered on balancing the streets fund amid declining fuel and state shared revenues against the impact of new local fees. Councilmember Cavalieri said she would not support the measure because it adds to residents’ tax burden after recent property tax and utility tax changes. "I won't be supporting it," she said, arguing the city had not first exhausted internal belt‑tightening. Councilmember Ballison said he supported the fee to ensure electric vehicle owners contribute to street upkeep: "I'm willing with my 3 gas cars to pay $20 a piece to get those electric vehicle owners to pay their share to support our streets."
Mayor Stephanie Vignal framed the proposal as necessary to fund deferred street maintenance and sidewalk repairs and noted the scale of deferred maintenance far exceeds the first‑year revenue projection. The ordinance was moved, seconded, and approved via voice vote, with the clerk recording a final tally of 6 in favor and 1 opposed.
Implementation requires the Department of Licensing to administer collection through a contract; the city will retain 99% after a 1% administrative fee and the state treasury will distribute net proceeds monthly. Lambad said staff will coordinate with the Department of Licensing and return with implementation details as needed.
Authority cited: RCW 36.73.065 (granting cities the authority to impose a vehicle license fee within a Transportation Benefit District).
Finance Director Ermina Lambad told council the fee is authorized by RCW 36.73.065 and that the proposal would assess $20 per registered vehicle for the first 24 months. Lambad estimated the $20 fee could raise roughly $295,000 annually for Mill Creek (with partial year collections expected in the first year because of the 180‑day implementation lag). If the council later raises the rate to $40 per vehicle after the initial 24 months, revenues would increase accordingly; the RCW also allows higher limits subject to council action and potential referendum rules.
Council debate centered on balancing the streets fund amid declining fuel and state shared revenues against the impact of new local fees. Councilmember Cavalieri said she would not support the measure because it adds to residents’ tax burden after recent property tax and utility tax changes. "I won't be supporting it," she said, arguing the city had not first exhausted internal belt‑tightening. Councilmember Ballison said he supported the fee to ensure electric vehicle owners contribute to street upkeep: "I'm willing with my 3 gas cars to pay $20 a piece to get those electric vehicle owners to pay their share to support our streets."
Mayor Stephanie Vignal framed the proposal as necessary to fund deferred street maintenance and sidewalk repairs and noted the scale of deferred maintenance far exceeds the first‑year revenue projection. The ordinance was moved, seconded, and approved via voice vote, with the clerk recording a final tally of 6 in favor and 1 opposed.
Implementation requires the Department of Licensing to administer collection through a contract; the city will retain 99% after a 1% administrative fee and the state treasury will distribute net proceeds monthly. Lambad said staff will coordinate with the Department of Licensing and return with implementation details as needed.
Authority cited: RCW 36.73.065 (granting cities the authority to impose a vehicle license fee within a Transportation Benefit District).
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