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Yes, I want to support My MLTnews!Key takeaways:
- Mountlake Terrace’s citizen task force shares results of six-month cost-cutting exercise.
- Task force prioritizes Pavilion through voter-approved taxing plan.
- Task force agrees to increase property taxes.
- Task force does not cut domestic violence support, events manager.
- Take the proposal survey here before Jan. 22.
- Council to take up proposals Feb. 26
Mountlake Terrace’s community-driven financial sustainability task force released the results of its six month review of city finances and shared recommendations on cuts and taxes at back-to-back community meetings Jan. 13 and 14.
The preferred proposal includes: an increase in property taxes, creation of a Metropolitan Park District to fund replacement of the Recreation pavilion, an increase in sales tax for transportation-related projects and a cut to general fund services by 5%.
The alternative proposal includes: a smaller increase in property tax, creation of a Metropolitan Park District (MPD), a sales tax increase for transportation projects and a $20 increase in car tab fees, a cut to general fund services and the elimination of a Mountlake Terrace police commander.
The Mountlake Terrace City Council is scheduled to take up the task force recommendations Feb. 26 as they plan the City’s 2027-2029 budget.
Mountlake Terrace city staff hosted the two community meetings – one via Zoom, the other in person — to share the results and give the public an opportunity to talk directly to task force members about their process and their decisions, and the details behind both.
A handful of residents showed up at city hall to learn more about the proposals, and they peppered task force members with questions during the breakout session. Members were enthusiastic and knowledgeable.
“Looking at the org chart, how will this cut [to command staff] impact the police?” asked Marisa, a community member.
“We looked at the NIMS [National Incident Management System] standard,” answered Ian Tucker, a task force member. “No one is fired. It’s a planned retirement.”
“I’m confused about how this Metropolitan Park District affects the pavilion,” said Tricia, a resident.
The popular pool complex has reached the end of its useful life and will require significant upgrades that the city says it cannot afford under the current financial plan. The city shared all the options.
By creating a new funding source, the MPD, the city can reduce spending from the general fund and keep the pool and pavilion in Mountlake Terrace.
“If we enter into a partnership with other communities, our regional pool might end up in Edmonds,” task force member Danny Luoma explained.
“I wish more people were here,” said Sandi, a community member who sat at one of the six break-out tables.
What the task force has been working on
For nearly six months, the 15-member task force reviewed detailed proposals and weighed options and impacts to find a solution for the City’s $4.2 million budget deficit, which was uncovered during a 2023 financial audit. That deficit is projected to grow to $5.4 million annually through 2035. Task force members tackled expenses that repeatedly exceed revenues and the City’s nearly depleted reserve budget. They did all this to develop a long-term glidepath for financial stability with community values at the forefront and community buy-in behind it.
Many of the budget problems presented to the community are not unique to Mountlake Terrace, as MyMLTNews reported in our December multi-part Government and You series.
Idea review
Task force members received and reviewed 30 suggestions submitted by City of Mountlake Terrace staff to cut costs. The task force itself developed another 16 ideas. Members debated, ranked, organized and explained each of the 46 ideas to reduce costs and generate revenues while preserving what makes Terrace a place they want to live. They did a deep dive on each proposal.
Two top priorities emerged: First, remain a place where people can afford to live and second, keep the Mountlake Terrace Pavilion and pool in Mountlake Terrace.
The task force settled on 11 ideas.
Big decisions
Mountlake Terrace has not raised property taxes for several years. The city “banked” its capacity for the annual allowable 1% increase and much of the increase triggered by the Regional Fire Authority vote. Banking means the city had the ability to raise property taxes at the time but chose not to, instead waiting until a time in the future. The task force decided now is the time. This property tax windfall will generate between $1.8 and $2.5 million.
“This is one of the only ways to solve this problem without causing really regressive cost increases,” said Ellen Lavoie, task force member.
The second decision involves the Mountlake Terrace Pool and Pavilion. The task force recommended creating a new tax (the Metropolitan Park District) to pay for the complex and community parks. Pavilion alternatives – community partnerships or regional support to pay for a new complex – could leave Terrace without the complex entirely and/or see a new regional pool located in, say, Edmonds.
“Once it’s gone, it’s gone,” task force member Tucker said.
Task force members determined the complex is too important to residents to possibly lose it. This tax proposal generates $2.15 million. The tax is up to voters.
This tax, however, will not fund a pool/pavilion replacement, only repairs. It removes pavilion funding from the general fund and creates a financial space to ask for future funding.
Cuts to general fund services of 5% would generate another $1 million savings.
Smaller decisions
Other decisions included the creation of a 0.3% Transportation Benefit District sales tax for one year to fund transportation projects like streets and sidewalks. This would generate $835,000 and must be approved by voters. A $20 car tab increase would raise another $315,000. The Council can do this without a public vote.
Another choice is to cut Mountlake Terrace Police command staff, which saves $250,000.
Task force members also grappled with how to increase city reserves, which function like a rainy day fund. The goal is have 20% in general fund reserves. Without action, the city’s general fund reserves will fall below 5% in 2027.
Cost savings ideas eliminated
Task force members agreed not to pursue a handful of ideas. These included eliminating the city events position. The city has grown the number of events in recent years, and they are very popular. Members also did not eliminate the domestic violence coordinator position. They said no to a utility tax increase. They also said no to a general levy lid lift, opting instead for specific increases to support streets and parks.
Many perspectives
Task force members agreed that developing the recommendations was a learning experience. They learned about city government and learned from other residents on their team. “Empathy,” is how task force member Brent Meyer described his experience.
That was by design. City Manager Jeff Niten reviewed all applications to the financial sustainability task force and did his best to ensure a cross-section of representation: young and older adults, renters, homeowners, new residents, long-time residents, residents on the financial edge and those who are financially comfortable.
Who wasn’t on the task force? Councilmembers. “We didn’t want to influence any decisions,” Councilmember William Paige, Jr. said.
Once residents have taken a look at the proposals (the entire presentation can be found here) the City wants residents to share their thoughts in this survey, open through Jan. 22, 2026.
The Mountlake Terrace City Council takes up the budget package Feb. 26.
This story was updated Jan. 20, 2026 to include information about funding a pavilion/pool replacement with MPD dollars.
The key take away from this report is that a suggested creation of a Metropolitan Park District WILL NOT fund a new pool. This is clearly stated on page 45 of the presentation (linked in this article). City staff does a wonderful job maintaining the Pavilion with their limited resources. But with 70% of the visitors to the Pavilion from out of town, why even have a pool? And a $70 million new facility is beyond the reach any city, even Seattle. Could (or should) we gut the Pavilion, down to the studs, and install all new wiring, plumbing, roof, HVAC system and all related pool boilers, pumps, etc.? And (picking a number out of the air) do it for $7 million? 10% the cost of a new building. The 2024 city’s facilities condition assessment report put a figure of $2,380,990 to replace everything. But that figure is from a consultant, on a contractor who would do the work. A levy rate of 10 cents a thousand ($60.00 a year per household) ($500,000 annual revenue to city) could service the bond debt. We just need a 60% yes vote and a 40% voter turnout. That will get us to 2068, when the Pavilion will be 100.
Dale,
You are correct. We spoke with City Manager Jeff Niten today and updated the story to be clear that the money will go for maintenance and operations and that maintenance money/subsidies ($1 million) will no longer come from the general fund. Thank you for your comment.