1. Did you know that the Anacortes City Budget went up by 44% in 2022 and has maintained that level since then? During the period 2015 to 2021, the city budgets remained relatively stable. However, in 2022 Anacortes increased its budget by a whopping 44% and it has continued to increase since then (Chart 1).

Why the 44% budget increase in 2022 in Anacortes?  The most important driver is the city’s adoption of a $250 Million six-year (2022 to 2027) capital project called Capital Facilities Plan (CFP). The CFP identifies “the demands placed upon the city associated with growth”. According to the city’s most recent Comprehensive Plan, the population growth in the next twenty years is expected to be around 5000 people. The city government expects to fund the $250 Million CFP with property, sales and exercise taxes, as well as user and impact fees. Additional funding “could” also come from grants, private developer’s contributions, revenue bonds and public loans. In the 2022 budget, the city included $45 Million for its CFP, which was ~60% of the city’s total revenue in 2021.  Therefore, Mayor Gere described the 2022 budget increase over the previous year as “salient”.  The result is that Anacortes has become a much more expensive community in which to live.

The population growth in Anacortes for the past 10 years has been around 1% per year (Chart 2). Citizens have requested the city government to provide facts and data to demonstrate the expected population growth and the demographics to support the housing and infrastructure needs. However, the city government only provided historical data which does not support the population growth and household size used in its comprehensive plan.

 Let us look at Mt Vernon, the largest city in Skagit. It also developed a six-year Capital Improvement Plan (CIP) but is requesting only $150 Million for a growth estimate of 10,400 more residents during this period. That is $100 Million less funding for 50% more population growth. Mt Vernon government has recognized that the city has finite resources. As a result, the city has incorporated the current residents paying for growth, along with implementing the capital projects as the facilities are required to expand.  In fact, the Mt Vernon city budget in 2025 is a 22% reduction from its 2024’s budget because of the funding changes on its capital projects

It is time we do a reality check and answer the hard questions.

1. Why do we need to execute capital funding projects during the first six years for a potential population growth that would take 20 years to reach?
2. How much does it cost each year from 2022 to 2045 for the current residents in terms of property taxes, sales taxes, service fees, exercise fees and impact fees?
3. During the period 2022 to 2025, the population growth and housing requirements in Anacortes have been way under the forecasted growth. This implies that the current funding plan will result in financial inefficiency and waste. The CFP needs to be modified to adjust to the capital needs of a relatively stagnant population.