Mukilteo council passes budget with deficit, hopes for new revenue
MUKILTEO — The Mukilteo City Council voted 5-2 to approve a new biennial budget Monday that is set to leave the city with a $3.4 million general fund deficit by 2026.
The council majority hopes future revenue, including the sale of Hawthorne Hall, the annexation of additional properties and a new automated traffic camera system, will help cover the gap by the time 2026 arrives. If the money doesn’t come, the council could amend the budget to meet a city requirement to keep at least two months of operating expenses — equivalent to 16.7% of the general fund — in reserves.
In 2026, the city would need approximately $3.6 million in reserves to meet that requirement. At the moment, without the possible new revenue factored in, Mukilteo is expected to have only $1 million in reserves by the end of 2026, about $2.6 million short.
As it stands, the $19 million general fund will operate with a $700,000 deficit in 2025. The city’s overall budget for the year, which includes emergency medical services, street funds and capital projects, totals $44 million.
https://www.heraldnet.com/news/mukilteo-council-passes-budget-with-deficit-hopes-for-new-revenue/