While city general fund revenue lagged slightly behind expectations for the first six months of 2013, expenditures were less than what had been budgeted, leaving the general fund operating balance with almost a $200,000 surplus. “We’re more than making up the revenue shortfall by not spending those dollars,” Caulfield said.
Caulfield said the city has continued to effectively manage its financial resources due to its balanced budget, six-year financial forecast, sound financial policies and the implementation of action strategies and preventatives measures to ensure the city lives within its means.
Although there are indications that the economy is recovering on a national level, Caulfield noted that local government revenue still lags behind and it could take a decade or more for revenue collections to return to 2006-2007 levels.
One bright spot in the city’s revenue report was an increase in sales tax collections during the second quarter of the year. The city collected $920,444 in sales taxes in April – June, 2013, in effect matching the second quarter total from pre-recession 2007 and climbing from a 2009 low of $773,514 tax total. “This is a bit of a positive,” Caulfield proclaimed.
Other second quarter highlights included the city’s Economic Development strategy moving forward, several grant awards received, financial prudence practiced by departments, continued community outreach, and 24 major public infrastructure projects currently underway, Caulfield said.
“We continue to meet our objectives due to clear direction from the City Council and commitment to our financial policies,” Caulfield said.
You can view the entire City of Mountlake Terrace 2nd Quarter 2013 Financial Report here.
— By Doug Petrowski