City of Anacortes - City Council Meeting (10/19/26)

At its October 19, 2026 City Council meeting, Anacortes reviewed draft 2027 legislative priorities, discussed a possible local business and occupation (B&O) tax, and approved 2027 lodging-tax allocations. The draft state funding requests included $1 million for preservation and maintenance of the SR 20 spur; the project is now estimated to cost nearly $5 million, with the city also pursuing $4.8 million through Transportation Improvement Board and federal Safe Streets for All grants. The city and Port are advancing the Cape Sante event facility, for which the state provided $500,000 in the prior year. A future, currently unfunded sanitary sewer extension estimated at $9 million was identified as a project to build support for in a later legislative session. Council discussed the priorities but did not formally adopt them; staff will return with the agenda for adoption. The Public Works Committee also reported that three wastewater-treatment alternatives will be presented publicly in December and that a change order for the nearly completed 17th Street Outfall contract is expected to come before council.

Council approved Resolution 3231, awarding $324,800 in 2027 lodging-tax funds to 21 of 25 applicants; the allocations are intended to attract visitors and support local economic activity. The consent agenda, including claims and the property-tax levy, was also approved. The B&O tax discussion was informational, with no decision made: staff outlined a possible 0.2% rate and $2 million annual payment threshold, estimating about 73 businesses would be affected. Public commenters raised concerns about the tax’s effects on small businesses, restaurants, and independent medical practices, while council requested further consideration of details and impacts.