A. There is created an 11.5 percent tax to be levied on and after January 1, 2023, against and upon the total annual revenues derived from:
1. The city’s water, storm drainage and sewer utility funds; and
2. All water, storm drainage and sewer utilities, business enterprises or other entities engaged in providing such utility services within the city.
B. The finance director is directed to collect this imposed tax and to pay the collected revenue into the city’s current general fund, subject to subsection C of this section.
C. On and after January 1, 2023, the finance director shall allocate two and one-half percent of the tax revenue received under this section for the purpose of acquiring, investing in, constructing, improving, providing, operating, preserving, maintaining and/or funding transportation improvements in the city.
D. The tax rate in subsection A of this section shall automatically revert to nine percent if the state of Washington provides the city’s arterial street preservation fund with a long-term sustainable funding source that is sufficient to maintain the city’s arterial street system’s pavement condition index (PCI) at an average of 70 PCI out of a score of 100 PCI for the foreseeable future.