City of Anacortes - City Council Meeting (10/5/26)

At its October 5, 2026 City Council meeting, the City of Anacortes discussed the 2027 revenue outlook and budget gap. The finance director presented estimated revenues including an $8.839 million property-tax levy and $6.3 million in sales-tax revenue, and described a projected $2.4 million shortfall. Staff recommended considering a 1% property-tax increase (about $87,000), the law-enforcement sales-tax option (estimated at about $660,000), and a business and occupation tax (estimated at about $850,000); staff did not recommend another utility-tax increase. Council discussed the assumptions, restrictions, implementation timing, and risks of these options, but took no vote on them. A further B&O-tax briefing was requested, and council is expected to consider the 1% property-tax increase at a subsequent meeting.

The council also discussed a proposed interlocal arrangement under which the city would provide GIS mapping support to Skagit County and bill for work performed. Members sought confirmation of data-storage capacity and indicated the item could be deferred; the agreement was described as terminable with 30 days’ notice. The consent agenda was approved unanimously. In a capital-project update, staff reported that the new signal poles for an intersection project were being installed, but the project’s light-control cabinet was on order and delayed by procurement issues; the signals cannot be activated until it is received, inspected, and approved. No contract award or purchase approval was identified.