Covington voters will decide this November whether to increase the city’s sales tax rate by 0.2 percent, or 1 cent on every $5 of taxable purchases, to pay for street maintenance and other improvements.
The city’s street fund which pays to maintain city streets, has a budgeted shortfall of $56,000 this year, and reserves are expected to run out in 2017. Among the causes are statewide ballot measures, the Great Recession, higher gas prices, and inflation.
The city’s general fund, which pays for public safety and other city services, is also tight. Every year $250,000 has to be transferred from the general fund to the street fund just to keep the street fund afloat.
The city currently doesn’t build street projects unless it gets grants, doesn’t overlay streets without grants, and does only limited pavement repair. Existing maintenance programs are facing further reduction, as well.
The number of Covington police officers per 1,000 residents is below the King County average. Covington has 0.88 officers per 1,000 residents. The average is 0.93 in cities that contract with the King County Sheriff for police services and 1.41 in cities with their own police departments, excluding Seattle. The city hasn’t added police officers since 2008 despite significant commercial and residential growth the past five years.
The city has a half time code enforcement officer who addresses quality of life issues like homes in disrepair. The position was full time prior to the recession.
The Covington City Council appointed a Budget Priorities Advisory Committee in early 2012 to study the city’s mix of taxes and services. The group’s 15 members were chosen for their diverse backgrounds and perspectives. There were men and women, residents and businesses owners, veterans and newcomers, supporters and critics, different points on the political spectrum, and different professional experiences and personal interests. The group’s expectation was that it needed to identify and cut waste. Its final impression was that Covington is a “very well run city with an excellent corporate culture” and city government is “lean and mean.”
The group’s core recommendation was to form a transportation benefit district and ask voters for a 0.2 percent sales tax increase as soon as possible. A TBD is a separate government entity with the same boundaries as the city. It’s governed by the City Council acting as a separate board and supported by city staff under a contract between the city and TBD.
TBDs have revenue authority cities don’t have, such as a 0.2 percent sales tax and a $100 license fee per vehicle per year. Many cities have formed TBDs and most have chosen to impose a $20 vehicle license fee without voter approval. The Covington City Council formed a TBD in April and the TBD Board chose to let voters decide whether to impose a 0.2 percent sales tax in November. A 0.2 percent sales tax would boost the rate in Covington from 8.6 percent to 8.8 percent — some purchases, like restaurant food, would continue to have a different rate. At 8.8 percent, the rate would still be 0.7 percent lower than in Renton, Kent, Auburn, and other communities to the west.
The sales tax would be paid by everyone who shops in Covington and uses Covington streets and services, not just Covington residents. It would generate roughly $750,000 per year and expire in 10 years.
The TBD Board has committed to use the money to sustain existing maintenance programs, reinstate annual street overlays, enhance pavement repair, provide for small capital projects, and provide matching funds for federal and state grants. The City Council has committed to use the general fund money it wouldn’t have to transfer to the street fund anymore to hire another police officer and increase code enforcement by 10 hours per week.
The city’s 2013 resident survey, conducted in May 2013, showed that 76 percent of Covington residents ranked street maintenance an essential or high priority, and 69 percent strongly supported or were inclined to support higher taxes for improved streets and traffic flow. Ninety-three percent ranked police an essential or high priority and 76 percent strongly supported or were inclined to support higher taxes for additional police officers.
More information is available on the city’s website at www.covingtonwa.gov/TBD.
Derek Matheson is Covington’s city manager. His intent is to provide factual information in accordance with state election laws.