In the report, Finance Director Sonja Springer noted that the City remains on target with the Six-Year Financial Forecast and that this has been accomplished through the City Council’s adherence to a practice of living within its financial means.
Some of the highlights of the report include:
- Sales tax collections, which help fund the General Fund, for the first six months exceeded projections, coming in at 54 percent of the budget. Total sales tax collected through the second quarter of 2014 sales was $1,080,733.
- Gambling Tax Revenues were under budget for the quarter due to the closing of the Palace Casino in 2013. Gambling tax revenues totaled $473,555 through the second quarter, or 38 percent of the $1,239,000 annual budget.
- Development Services Fees totaled $238,439 or 29 percent of the Revised Budget of $820,000. Building permit revenues will increase during the upcoming third quarter of the year.
- General Fund revenue pays for the City Council, City Manager, Administrative Services, Community & Economic Development, Fire (contracted through Fire District 1), Municipal Court (contracted through Snohomish County), Parks & Property Management and Police
- General Fund Operating Expenditures were down in the second quarter as contrasted with a year ago. Departments have reduced their operating expenditures while also maintaining the same level of service.
- The Recreation Fund has a target of recovering 85 percent of its overall cost through user fees; the remaining 15 percent of the cost for recreation programs is funded by the General Fund. The Recreation Fund ended the Second Quarter with a 87 percent Cost Recovery.
- Hotel/Motel Tax Revenues are at 58 percent of the Revised 2014 Budget, which is a positive sign that the local economy is improving.
- Real Estate Excise Tax Revenues are up from a year ago.
In conclusion, Springer said that the City remains on target financially in providing cost-effective services, programs and projects identified by the MountlakeTerrace community; and the City Council has adhered to a policy of ensuring these programs and projects will be able to be maintained for years to come by living with its financial means; and there are strong indicators that the economy is improving in the City of Mountlake Terrace.