By Doug Petrowski
While the City of Mountlake Terrace continues to stay financially healthy during the difficult economic times of today, tomorrow will be more difficult, City Manager John Caulfield told the city council last week.
Caulfield shared thoughts of the city’s economic budget future during the first quarter 2012 financial report presented at the June 18 City Council meeting.
“Our most difficult years are probably ahead of us,” Caulfield said.
City officials have already begun work on a number of upcoming financial budgets, including the 2013-2014 city budget and the 2013-2018 financial forecasts and capital improvement budgets. “The 2013-14 budget, for example, is going to be extremely, extremely tight,” Caulfield said.
“It could take upwards of 10 years for just the numbers, the dollars, to return to where they were in 2006-2007,” Caulfield added.
As for this year, the city had budgeted $21,046,175 in general government spending, while expecting income of $24,825,828. The cause for some concern at City Hall is that major operating revenue sources are falling short of projections. Sales tax revenue for the first quarter of this year was forecast for $434,646, but only $414,303 was collected. Gambling taxes, state-shared revenues and recreation fees collected also fell short of projections.
“Most of our operating revenues continue to fall short of projections, no matter how low we go,” Caulfield said.
City departments have absorbed similar shortfalls in expected revenue the past few years and will be called on to do so again this year, Caulfield explained. “We’re able to hold things together,” he added.
The Mountlake Terrace City Council will review the formal financial forecasts for 2013 and beyond in September, with the 2013-2014 budget scheduled to be finalized in November.
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