The Mountlake Terrace City Council has finished its review by departments for the proposed 2025-2026 Biennial Budget with a focus on special revenues.

Finance Director Sirke Salminen reviewed the special revenue funds, which are restricted by law or for emergency use and come from taxes or as a transfer from other funds.

These funds include:

– Strategic reserve fund

– Contingency fund

– Debt service fund

– Real estate excise tax fund

– Accumulated leave reserve fund

– American Rescue Plan Act Fund

– Solid waste

– Lodging tax fund

– Housing needs fund

– Art fund

– Tree fund

Salminen said the strategic reserve fund is for economic or natural disasters, while the contingency fund, also known as a rainy-day fund, is for unplanned expenses — currently, the funds combined account for 5% of annual expenditures.

City Manager Jeff Niten said he would like to follow financial best practices and have a minimum of three months of operating expenses, which is about 20% of city expenditures. He said that reaching the goal “will not happen overnight” and that he looks forward to working with the financial sustainability task force that will be formed in 2025 on the matter.

In other business, Salminen briefly presented the 2025-2026 biennial budget. This legal document sets forth expenditure authority and limits and is a management tool for describing and confirming the city’s services and service levels.

Salminen explained that the overall budget is 14% lower than the previous budget, with the general fund being 5% lower.

Councilmember Laura Sonmore asked if the city had a balanced budget according to Washington state law, to which Salminen said, “Yes.”

To review the 2025-2026 biennial budget, click here.

The city council also approved board and commission vacancies during last week’s meeting.

State law requires representatives from establishments that collect and pay the lodging tax. The subcommittee did not interview LTAC appointees. Two representatives from the Studio 6 ownership group were appointed:

-Travis Romine, Studio 6 Hotel, area general manager, iQon Hospitality

-David Cavazos, Studio 6 Hotel, chief operating officer, iQon Hospitality

Cameron Wu was selected to fill the Mountlake Terrace Planning Commission vacancy due to a resignation. A city council subcommittee, which included Mayor Kyoko Matsumoto Wright, Mayor Pro Tem Bryan Wahl and Councilmember Erin Murray, recommended Wu after interviewing him in June 2024.

The council approved $250,000 for a replacement water truck ahead of schedule. Public Works Director Gary Schimek said that the state’s move to electric trucks could cause delays in receiving the replacement.

Schimek said that on Jan. 1, 2025, Washington State will require large truck dealers to sell one fully electric, zero-emission model for every six diesel-powered trucks.

Washington state’s requirements for large truck manufacturers in 2025 are:

Model Year Class 2b-3 (8,501-14,000 pounds) 7% electric

Class 4-8 (14,001-60,000 pounds) 11% electric

Class 7-8 Tractors (26,001-60,000 pounds) 7% electric

Schimek said the new requirement has two issues. Most large truck dealers do not offer fully electric water-response trucks, and waiting to initiate the purchase process could delay receiving the new vehicle.

At its next meeting, the council is scheduled to hold a public hearing and vote on adopting a property tax levy.

The next meeting will start at 7 p.m., Nov. 14, at Mountlake Terrace City Hall, 23204 58th Ave. W., Mountlake Terrace. To attend the meeting online, visit zoom.us/join and enter meeting ID 810 1113 9518; no passcode is needed.

To make a public comment remotely, complete the registration form within 24 hours of the meeting’s start here.

To listen via telephone, call 1-253-215-8782 and enter the same meeting ID.

You also can view live-streamed meetings and past video recordings at www.youtube.com/cityofmlt.

The agenda can be viewed here.

— By Rick Sinnett