Mountlake Terrace: solid as a rock

MOUNTLAKE TERRACE — Unlike its neighboring cities of Lynnwood and Edmonds, Mountlake Terrace is doing great financially.

“Having a five-year financial plan is what it’s all about,” said city manager Connie Fessler.

It is what has turned her city around from when it was in dire straights four years ago.

In its preliminary budget, Mountlake Terrace officials are assuming their state-allowed 1 percent property tax increase but no new or additional tax increases and no cuts.

It will cost $3.37 per year in increased property taxes for the owner of a home assessed at $177,000, city officials said.

For Terrace, the budget process for the next two years came easier than most this year because of the famous five-year plan.

“We have sufficient funds to carry us through 2006,” she said. “And we’ll have sufficient funds to carry us through 2007 if we decide to use some of the revenue stabilization reserve.”

For 2003, the city has a total budget for $55.8 million. This is $11.2 million over the 2004 total budget of $45.1 million.

The reason for the extra money next year, Fessler said, is for capital improvement projects that have been planned and saved for.

According to Fessler, the projects planned for 2003 are the renovation of the Mountlake Terrace Pavilion costing $2 million, a new fire station costing $1.5 million and a new, bigger water tank as well as water line improvements costing $2.5 million.

Another major project planned for next year is some street improvements, the largest being on 220th Street SW, from Highway 99 to 52nd Ave. W. The project includes traffic management improvements, such as signal timing and new turn lanes. Also it will include overlay work along 220th. This will cost $2.8 million, which includes a $1 million grant.

In addition to the capital projects for 2003, Mountlake Terrace will also see some new recreation programs, which will include 10 new positions.

Expansion of the recreation programs include more preschool, more aquatic programs, Kids Crew, after-school programs and a new teen program that will start after the first of March, Fessler said.

“These programs pay for themselves,” Fessler said. “So there’s no increase costs to the general fund.”

It is also recommended to add one new support position in the city manager’s office. This would cost about $40,000 a year.

Besides the banked revenue the city has put aside, the utility taxes, sales tax and the admissions tax, another reason they are doing better these days is the Silver Dollar Casino. This is the first whole year Mountlake Terrace has seen what the gambling tax has done for them.

“We expect to get $750,000 each year for 2003 and 2004 from the gambling tax,” Fessler said. This is more than they had initially thought it might be and needless to say, they are pleased.

Mountlake Terrace will have a public hearing regarding the budget at 7 p.m. Nov. 18 in the City Council Chambers at 23204 58th Ave. W. For more information call Mountlake Terrace City Hall at 425-776-1161.