Anacortes balances 2027 budget without tax hikes

Anacortes City Council received a balanced 2027 budget proposal on October 26 that avoids new taxes, utility fee increases, and involuntary staff layoffs. The plan closes a projected $2.4 million shortfall identified in July without cutting core public services.

In July, city officials estimated that 2027 expenses would outpace projected revenues by $2.4 million. Over the following months, staff worked to reduce that gap. The final proposal maintains funding for police, fire, EMS, the library, museum, parks, and the senior center. It also eliminates a proposed business and occupation tax.

The budget achieves balance through operational efficiencies and structural changes. The city will shift some costs from the General Fund to utility funds. It will also bring more work in-house for the Fiber and Public Works departments. This change aims to save more than $1 million in outside consulting fees.

Mayor Ryan Walters cautioned that the budget is not sustainable long-term. To reach balance, the city will postpone contributions to equipment replacement funds and its paving program. He noted that rising costs and stagnant revenues continue to challenge Washington cities. Additional revenue sources will be required for long-term stability.

The complete budget message is available at anacorteswa.gov/budget.