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** Mukilteo council passes budget with deficit, hopes for new revenue

Lynnwood, WA** Local News

The Mukilteo City Council has approved a new biennial budget that forecasts a $3. 4 million general fund deficit by 2026, following a 5-2 vote. Supporters are optimistic that new revenue from the sale of Hawthorne Hall, property annexations, and an automated traffic camera system will help mitigate the financial shortfall. However, dissenting council members Mike Dixon and Steve Schmalz criticize the plan as irresponsible, arguing that reliance on speculative revenue sources could leave the city vulnerable. The council's projections for 2026 are cautiously optimistic, estimating a possible surplus if these revenues materialize.

The budget requires maintaining a reserve of at least $3. 6 million, which the city currently lacks. The total budget for 2025 is $44 million, including various services, but is expected to operate at a $700,000 deficit. As discussions continue, the council emphasizes the importance of closely monitoring revenues and making necessary budget adjustments.

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