Mountlake Terrace finance staff present FY2024 results; council presses on water shortfall, reserves

Mountlake Terrace officials reviewed the city’s fiscal year 2024 financial report Wednesday, reporting a modest revenue surplus in the general fund but a nearly $933,000 shortfall in water-service revenues and several large timing-driven variances in capital funds.

The presentation was given by Aris Nemati, senior accountant for the City of Mountlake Terrace. Nemati said the general fund’s actual revenues were about $600,000 higher than budgeted but cautioned several variances were driven by accounting and timing differences. “Our actual revenues came in slightly higher than the budgeted revenues,” Nemati said. He explained the city’s recent move to cash-basis accounting: “We are now a cash‑basis government … we book the revenue the day it comes in.”

Why it matters: council members said the water shortfall and capital reimbursements could affect near‑term spending choices. The presentation and follow-up questions repeatedly framed the variances as largely timing issues — loan drawdowns not taken, grant reimbursements delayed, and revenue recorded only when cash is received — but councilors asked for clearer, consolidated measures of operating results and reserve status.

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