Walters plans in-house work and cost shifts to cover Anacortes 2027 deficit
City closes a $2.4 million deficit by cutting outside consulting and shifting costs to utility funds, though leaders warn the measure is not sustainable.
By Marco Ortega ·
Mayor Ryan Walters told the City Council on October 26 that Anacortes faces a structural financial gap that cannot be fixed by raising taxes. The city’s July projections showed 2027 expenses exceeding revenues by $2.4 million. The proposed budget balances the books without increasing utility taxes, adding a business and occupation tax, or laying off staff involuntarily.
The plan relies on internal changes rather than new income. The city will bring more work in-house for the Fiber and Public Works departments, a move expected to save over $1 million in outside consulting fees. The budget also simplifies structures and shifts specific costs from the General Fund to utility funds. These measures allow the city to maintain services for police, fire, EMS, the library, museum, parks, and the senior center.
Walters cautioned that this balance is temporary. To close the $2.4 million hole, the city will delay contributions to equipment replacement funds and postpone its paving program. He noted that rising costs and revenue growth that lags behind inflation create a persistent challenge for Washington communities.
The mayor stated that additional revenue sources are necessary for long-term stability. The current proposal addresses the immediate shortfall but requires continued fiscal discipline. The complete budget message is available at anacorteswa.gov/budget.
Source: City of Anacortes
