Anacortes Mayor Walters proposes 2027 plan that defers paving and equipment upgrades

City of Anacortes residents will see no increase in utility taxes under a new financial plan presented by Mayor Ryan Walters on October 26. The proposal balances the 2027 budget despite a projected $2.4 million shortfall that the city identified in July. This approach avoids involuntary staff layoffs and the introduction of a new business and occupation tax.

Walters told the City Council that the city achieved balance through operational efficiencies and spending reductions. The plan shifts certain costs from the General Fund to utility funds and simplifies budget structures. It also brings more work in-house for the Fiber and Public Works departments, a move that could save more than $1 million in consulting fees.

Essential services remain funded under the proposal. Police, fire, and emergency medical services continue to operate. The library, museum, parks, and senior center also retain their support. The city is reducing its reliance on outside consultants to manage these operations.

Walters cautioned that the balanced budget is not sustainable in the long term. To close the immediate gap, the city will postpone contributions to equipment replacement funds. The paving program and other needed services will also be delayed. Rising costs and revenues that have not kept pace with inflation continue to challenge cities across Washington state.

The mayor stated that additional revenue sources are needed for long-term financial stability. The complete budget message is available at anacorteswa.gov/budget.