Anacortes Mayor Defers Paving and Equipment Upgrades to Balance 2027 Finances

Anacortes faces a $2.4 million financial shortfall for the upcoming fiscal year, a gap that Mayor Ryan Walters has closed by postponing critical infrastructure work rather than raising taxes.

The city estimated in July that 2027 expenses would outpace projected revenues by 2.4 million dollars. To eliminate this deficit, the proposed budget relies on operational efficiencies and a strategic shift of costs from the General Fund to utility funds. This approach avoids a business and occupation tax, a utility rate increase, and involuntary staff layoffs.

Walters presented the budget message at the October 26 City Council meeting. He noted that the city will bring more work in-house within the Fiber and Public Works departments, reducing reliance on outside consultants. This internal shift is projected to save more than 1 million dollars in consulting costs. Essential services for police, fire, EMS, the library, museum, parks, and senior center remain funded under the new plan.

The balance is achieved by deferring contributions to equipment replacement funds and delaying the paving program. Walters warned that this balanced budget is not sustainable in the long term. Rising costs and revenues that have not kept pace with inflation continue to strain Washington cities.

The city states that additional revenue sources are required to maintain services and ensure future financial stability. The complete budget message is available at anacorteswa.gov/budget.