Mountlake Terrace fiscal forecast shows multi‑million-dollar gap; task force to seek community input

Baker Tilly consultants and Mountlake Terrace staff presented an updated long-range financial forecast and fiscal sustainability plan to the City Council on Oct. 9, describing a multi-million-dollar shortfall in the general fund and outlining a task force process and community engagement schedule to identify possible solutions.

Steve Toler, director with consultant Baker Tilly, said the forecast and the fiscal sustainability plan are intended to “tell the story” of the city’s finances using updated year-end numbers. He said the city’s forecast has been revised after completing the 2024/2025 close and resetting beginning reserves; the report shows the fiscal gap grows to roughly $4 million in new ongoing strategies needed by fiscal 2027 and an additional $2.3 million phased in over a three-year period starting in 2030. Toler summarized that the combined work would be necessary to avoid reserve levels falling below policy minimums.

City Manager Jeff said staff closed prior books and provided updated figures; he told council the city has experienced "doubling of insurance costs over the last couple of years" and…