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Did you know that the Fidalgo pool measure is broader that it looks?  This November, voters in Anacortes School District No. 103 will see Proposition 1 on the ballot, asking whether to form a Metropolitan Park District (MPD) to support the Fidalgo Pool and Fitness Center. At first glance, the ballot language makes it sound simple: if approved, the MPD would operate the “Fidalgo Pool and Fitness Center Campus.” Many voters will reasonably assume this is about keeping the pool open and funded.

But here’s the catch: both the City of Anacortes and Skagit County resolutions that put Proposition 1 on the ballot go further. They state that the new MPD would not only take over the pool but could also manage “other park and recreation facilities and programs” across the entire Anacortes School District boundaries — which stretch well beyond the city limits to include Guemes, Cypress, and Sinclair Islands.

 

Why this matters

  • No definition of “campus”: The term “Fidalgo Pool and Fitness Center Campus” isn’t defined anywhere in the resolutions. Could it mean the building only? The parking lot? Or could the MPD later declare other parks part of its “campus”?
  • Broader authority: The resolutions clearly give the MPD the power to manage other parks and recreation programs, not just the pool.
  • Tax implications: All property owners within the Anacortes School District boundaries would be taxed, even rural island residents who may not realistically use the pool or other facilities.

 

The bottom line

Proposition 1 may sound like a simple plan to save the Fidalgo Pool, but the legal framework paints a broader picture. The MPD could expand to oversee other parks and programs, backed by new taxes affecting every household in the school district.

Before voting, residents deserve clarity. Will the MPD stick to managing the pool, or does it have bigger plans? Contact Skagit County officials to ask about the MPD’s true scope and how it might evolve. Transparency is critical when creating a new taxing district that impacts us all.

 

Georgia Jelec

Anacortes, WA

Did you know Anacortes is the first city in Washington to become an Internet Service Provider (ISP)? Anacortes launched its municipal broadband vision back in 2015, when the City Council approved Resolution 2013 to pursue a city-owned fiber network. By 2019, crews had installed 30 miles of fiber through existing water pipes from Mount Vernon to Anacortes, creating a backbone designed to eventually serve the entire community. The project was engineered with help from NoaNet, Washington’s wholesale broadband provider, which projected the network could pay for itself in about 15 years if it captured roughly one-third of the local market.

Today, Access Fiber reaches about 75% of Anacortes’ 7,600 households and businesses—roughly 5,700 premises—with full coverage expected by late 2025. As of mid-2025, around 2,600 customers (about 45% of the service area) are connected. Annual revenue is estimated at $1.8 million. Residents are drawn to the service’s competitive pricing and the 30% discount available through Anacortes’ utility discount program for low-income households.

However, the investment has come at a steep cost. The city has poured approximately $22 million into the network since 2019, with $18.9 million in debt still outstanding and annual debt service of about $700,000. Fiber spending, coupled with slower-than-expected revenue growth, contributed to a $3 million general fund deficit in 2023. City leaders remain optimistic, projecting the fiber program will become self-sustaining next year.

Not everyone is convinced. Critics question the use of taxpayer dollars for a service that not all residents use, especially in a competitive market. Private providers like Ziply Fiber, offering multi-gigabit speeds through SkagitNet, and Starlink, targeting rural users with affordable satellite plans, pose significant challenges. Comcast and T-Mobile further intensify competition with cable and 5G options. To stay relevant in this rapidly evolving broadband landscape, Anacortes must continue upgrading speeds and forging strategic partnerships to expand its market share.

The success of this ambitious venture hinges on its ability to grow revenue and capture a larger slice of the market. Taxpayers should pay close attention to the financial results over the next year, as 2026 will be a pivotal moment in determining whether this high-stake investment delivers on its promise or becomes a costly lesson. Stay informed, attend city council meetings, and hold leaders accountable to ensure your tax dollars are driving a sustainable, community-focused future.

 

Sal Walker

Anacortes, WA

Did you know that the Fidalgo Pool and Fitness Center will be on the ballot again this November based on forming a Metropolitan Park District (MPD) to replace the Fidalgo Park and Recreation District (PRD)? The pool, a community hub since 1975, serves over 6,500 visitors monthly and supports youth and adult swim teams. Proponents, including Executive Director Dahlen (appointed April 2025), argue the MPD ensures stable funding for the aging facility. Critics warn of a 30% tax increase, forced annexation of Guemes Island, and loss of voter control. This blog examines both sides to help residents decide, using Washington State regulations (RCW 36.69 for PRD, RCW 35.61 for MPD) and community input. A comparison table below details key differences.

 

Why Support the MPD?

The MPD proposal, backed by the Fidalgo Pool and Fitness Center and Friends of the Pool, aims to secure long-term funding for the 50-year-old facility, which faces compliance issues and potential $30 million replacement costs. The current PRD relies on a six-year Operations and Maintenance (O&M) levy ($0.092 per $1,000 assessed value), requiring 60% voter approval for renewal. A failure, as occurred 31 years ago, could disrupt operations. The MPD’s permanent levy ($0.12 per $1,000) eliminates this risk, ensuring predictable funds and improving loan access for repairs. Proponents argue it replaces the current levy, not adding a new tax, and aligns boundaries with the Anacortes School District, spreading costs across Fidalgo and Guemes Islands. Public oversight remains via elected commissioners and voter approval for levy increases beyond 1% annually or bonds for new facilities.

 

Why Oppose the MPD?

Critics argue the MPD imposes unnecessary burdens. Residents claim the proposed levy ($0.12 per $1,000) raises taxes by ~30% from $0.092 per $1000, hitting fixed-income households hard. Guemes Island’s inclusion is contentious, with over 60% of Guemes voters rejecting the MPD in 2024, citing limited access due to ferry costs and “political overreach.” The permanent levy removes the six-year voter renewal, giving five commissioners authority over budgets, which critics call a loss of voting rights. With levies consistently approved for 30 years and the option to seek funds before 2027, opponents question the need for change, viewing it as a power grab. The 2024 vote’s narrow defeat (4,410 against, 4,407 for) reflects deep community division.

 

What Should Residents Do?

Vote Yes if you prioritize permanent levy for stable funding for the pool’s future, value improved loan access for repairs, and support regional cost-sharing. The MPD addresses the facility’s aging infrastructure and avoids the risk of levy failures.

Vote No if you oppose the 30% tax increase, resent Guemes Island’s inclusion against strong opposition, or value direct voter control via levy renewals. The PRD’s 30-year success and flexibility suggest it may suffice.

Residents from both Anacortes and Guemes Island can engage at commissioner meetings (third Thursday, 5:30 pm, commissioners@fidalgopool.com) or visit fidalgopool.com for updates. The November 2025 vote will shape the pool’s future—decide what balance of the pool’s financial stability and voter control works for you!

 

Sal Walker

Anacortes, WA

Did you Know that a Downtown Battery Storage Facility is planned at the Guemes Ferry Landing? As Anacortes pushes toward sustainability with plans for an all-electric Guemes Island Ferry, the proposal to build a battery energy storage system (BESS)  raises serious concerns. Recent incidents* involving BESS facilities, combined with Skagit County Commissioners recent approval of a BESS near the Port of Skagit highlight significant risks that make downtown Anacortes a questionable location. This article examines some these risks and explores possible tax implications for the community.

Risks of Battery Storage Facilities:

Lithium-ion battery storage systems, critical for powering electric ferries pose unique risks, as evidenced by global incidents.

  • Lithium-ion Battery Fires and Thermal Runaway.  Lithium-ion batteries can experience thermal runaway, where overheating leads to fires or explosions that are difficult to extinguish023.  Examples: 2023 Otay Mesa, California, BESS facility fire and 2021 Arizona BESS facility explosion.
  • Toxic Gas Emissions and Environmental Impact. Battery fires release hazardous gases like hydrogen fluoride and carbon monoxide, posing risks to residents and first responders.
  • Regulatory and Oversight Gaps. BESS regulations are evolving with no comprehensive federal standards in the U.S.
  • Inadequate Firefighting Capabilities. Local Fire Departments including Anacortes may lack the specialized equipment and training needed for lithium-ion fires, which require massive water volumes or specialized foam.

Potential Tax Implications:

  • County taxes: Skagit County is funding the Guemes  Ferry Project including the land to build the BESS storage system.  However a major part of the funding is from WA State grants.  Should the grant monies dry up, the gap costs and ongoing maintenance might require a sales tax increase, a further hike in ferry fares, and levies for insurance policy.
  • Local Property Taxes: To fund the specialized firefighter training and specialized equipment needed for lithium-ion battery fires which City of Anacortes might be required to obtain, could lead to a special property tax levy for Anacortes citizens.

Conclusions: 

The proposal for a battery storage system in downtown Anacortes at the Guemes Ferry Landing presents a complex balance of advancing sustainable energy goals and addressing significant safety and financial concerns. The risks of lithium-ion battery fires, toxic emissions, and the challenges of firefighting readiness raise important questions about the suitability of this location. Additionally, potential tax implications could impact the community, depending on funding outcomes and the need for specialized resources. While the push for an all-electric Guemes Island Ferry aligns with environmental priorities, the unique challenges of a BESS in a downtown setting deserve careful consideration. Ultimately, the decision rests on weighing these factors against the community’s values and priorities, inviting thoughtful reflection on what is best for Anacortes.

Anthony Lee

Anacortes, WA

*High profile BESS incidents in the past 5 years in the US: 2021 Surprise, Arizona: 2.16 MWh (Arizona Public Service facility explosion and fire, injuring eight firefighters). 2021 and 2022 Phase I and Phase II Moss Landing, California (730MWh). 2023 Otay Mesa, California: 250 MWh (Gateway Energy Storage Facility fire, lasting nearly two weeks). 2023 Escondido, California BESS fire. 2025 Moss Landing, California: Approximately 300 MWh (Vistra facility fire on January 16, affecting a 300 MW array, with evacuation of 1,200 residents).

Did You Know Skagit County is planning a shiny new battery storage facility at the Anacortes Ferry Terminal to power an all-electric ferry for the Guemes Island route. Yep, we’re talking about swapping out the diesel-chugging M/V Guemes for a greener, quieter ride across the Guemes Channel. But what does this mean for our environment and safety? Let’s dive into the details and see what’s at stake for our coastal community.

Going Green: A Win for Our Island Ecosystem?

Picture this: a ferry that glides silently across the water, leaving no smoky trail behind. That’s the promise of the new electric ferry, set to replace the 46-year-old M/V Guemes, which hauls 200,000 vehicles and 400,000 passengers yearly. The folks at Glosten, the brains behind the ferry’s design, say this electric switch could slash emissions to near zero and cut fuel costs by half. In a town like Anacortes, where we’re spoiled by Puget Sound’s beauty and powered by 100% renewable energy at the terminal’s EV chargers, that’s something to cheer about.

Less noise from the ferry means happier whales, seals, and other critters in the Guemes Channel, a place the Samish Indian Nation has called home for centuries. Plus, ditching diesel fumes keeps our air cleaner for beach walks and sunset strolls. But here’s the catch: the battery storage system, likely running on lithium-ion tech, comes with an environmental cost. Mining those battery materials can harm ecosystems far from our shores, and we don’t yet know how Skagit County plans to recycle or dispose of them. Want to keep this project as green as our forests? Let’s hope the county shares a solid plan to make sure the batteries’ lifecycle doesn’t undo our eco-wins.

Safety First: Powering Up Without Risks?

For Guemes Islanders, the ferry isn’t just a ride—it’s a lifeline. Whether it’s getting to work, rushing an ambulance across, or hauling groceries, the M/V Guemes runs 24/7. The new electric ferry, with its modern electrical systems, is said to be more reliable than the current boat, which had a 10-hour outage on June 16, 2025, thanks to some pesky wiring issues. A battery storage setup at the terminal will keep the ferry charged for those quick 5/8-mile trips, ensuring our neighbors aren’t left stranded.

But let’s talk about the elephant in the room: battery safety. Big lithium-ion systems can be risky—think fire hazards or, in rare cases, chemical leaks. With the battery facility planned right at our busy ferry terminal, we need to know it’s safe. Fire suppression systems, regular checkups, and a solid emergency plan are must-haves, but the county hasn’t spilled the beans on those details yet. After all, Anacortes folks deserve peace of mind, especially after past ferry headaches like fare hikes and service hiccups. The good news? Skagit County’s been good about listening, with public meetings like the one on June 13 and another planned for July 17, 2025, at the Guemes Island Community Center. Got questions about safety? Show up and make your voice heard!

What’s Next for Anacortes?

This electric ferry project could put Anacortes on the map as a green trailblazer, showing other coastal towns how it’s done. But it’s not all smooth sailing—there’s an $11 million funding gap, and the county’s rethinking the design to save cash after pausing the project in February 2025. Will they keep the safety and eco-friendly features we need? That’s where we come in, Anacortes. Stay in the loop by checking www.skagitcounty.net for project updates, or swing by did-you-know-anacortes.com to learn how big projects like this tie into our property taxes (yep, they’re connected!).

So, what do you think? Is a battery-powered ferry the future we want for our island paradise? Drop by the next City Council meeting, share your thoughts. Send your written comments with your name and address by 5PM July 2025. The City Council’s email is citycouncil@anacorteswa.gov Let’s keep Anacortes awesome—safely and sustainably.

Georgia Jelec

Anacortes, WA

Did you know that Anacortes with a population of approximately 16,189 as of 2015 and 18,270 as of 2025, has seen sharp increases in property taxes, utility fees and cost of building homes from 2015 to 2025? We have discussed property taxes in previous blogs. This blog will focus on utilities fees and cost of building homes.

 

I Trends in Fees 

I-1 Electricity Rates

Electricity rates in Anacortes have consistently exceeded state averages. According to Electricity Local, the average residential electricity rate in Anacortes is 10.36¢/kWh, 21.45% higher than Washington’s average of 8.53¢/kWh. For the past 25 years, Washington’s electricity prices have risen at an annual rate of 4.27%, outpacing the average inflation rate of 3.35% from 1998 to 2022. Puget Sound Energy proposed rate increases, including a 12.9% hike in 2023, though the Washington Utilities and Transportation Commission approved an 8.7% increase. This reflects a broader trend of rising energy costs driven by state policies and infrastructure needs.

 

I-2 Water, Sewer and Storm Water Rates

Water and sewer rates in Anacortes are managed by the city and not regulated by the UTC. A 2015 Anacortes Retail Water Rate Study emphasized the need for rate adjustments to fund infrastructure maintenance. In 2019, the City Council approved a $3,823 increase in the general facilities charge (GFC) for water and sewer connections for new construction to fund a new water treatment plant and wastewater treatment plant expansion. Contractors and residents have felt the higher GFC impact on their costs to build new homes. Some even came to the City Council meetings to complain about the high cost to hook up to city utilities.

In the past ten years, water rates and storm water fee for single family residents have increased almost 20% annually. Concerned citizens have spoken at the Monday night city council meetings and requested the City Council to help with high water bills. The sewer rates have an average of 5-7% increase annually which is also higher than the average inflation rate.

 

I-3 Solid Waste and Other Utilities

Solid waste services, including garbage, recycling, and organics, cost approximately $30 per month in Anacortes in 2025, aligning with state averages due to participation in recycling and composting programs. The city imposes a 12% solid waste utility tax, with an additional 3.6% state public utility tax forwarded to Washington. Natural gas prices have also risen, with residential rates increasing 16% from 19.02 $/Mcf in September 2023 to 21.98 $/Mcf in September 2024.

 

I-4 Development Impact Fees

In 2021, Anacortes raised residential development impact fees for parks, increasing them from $616 to $1,362 for single-family homes and setting them at $981 per multifamily unit. The city also significantly increased transportation impact fees. These adjustments were based on the city’s Comprehensive Plan, which projects a population growth of 5,000 and a need for 3,000 additional housing units. Additionally, a new commercial development impact fee was introduced to support $4 million in park-related capital projects. These increased fees have contributed to higher building costs, home prices, and overall living expenses, exacerbating the demand for affordable housing. This, in turn, necessitates additional taxes and fees to fund affordable housing initiatives, creating a concerning cycle of rising costs and financial burdens.

 

II Impact on Residents

Rising utility fees exacerbate Anacortes’ high cost of living, 19% above the Washington average and 40% above the national average. Low-income and fixed income households face particular challenges. Recognizing the financial strain on residents, Anacortes offers a Utility Discount Program providing a 30% reduction on utility bills for eligible low-income households. Eligibility is based on income guidelines and property tax exemptions. A $2 discount for Auto Pay and Paperless Billing is also available but require enrollment.

 

III Conclusion

Building and cost of living in Anacortes have risen sharply from 2015 to 2025 due to infrastructure upgrades and expansion, operational cost increases, state energy policies, population growth and inflation. Energy cost has grown steadily while city utility fees saw significant increases. To address affordability, Anacortes should examine its capital facilities plan against its actual population growth. For the past ten years, the city has an average of 1.3% annual population growth, much lower than its Comprehensive Plan’s growth factor which is the basis for capital projects, policy development and city planning. Building infrastructure capacity ahead of population growth curve significantly burdens its current residents. Additionally, the city should invest in energy-efficient infrastructure to balance service reliability with resident needs. While these increases are essential for maintaining and enhancing service quality, they underscore the importance of transparent budgeting and financial assistance programs to support residents.

 

Sal Walker

Anacortes, WA

 

Did you know that a key part of the funding sources for our Anacortes School District are Bonds and Levies?  So, what is the difference between a Bond and a Levy?

The easiest way to explain the difference is that a bond is for construction of new buildings (or modification of buildings or purchase of property to build a building).  A levy is for learning and operational expenses such as computers, other instruction materials, tools and supplies.

A levy is a short-term (1-6 years) local property tax collected to fund the portion of education programs and operations that are not funded by the state.  A levy normally requires approval of 50%+1 majority of registered voters to pass.

A bond is a long-term investment that authorizes the school district to basically obtain a loan from investors, or bank and the loan principal and interest is paid over time (typically 12-20 years) through property taxes.  Bonds typically require approval of 60% majority to pass.

The key overall funding sources for Anacortes School District are as follows:

      For 2022-23 (Source: NCES)

             State:       56%       $30.3 Million

             Local:       32%       $17.2 Million

             Federal:   11%         $6.0 Million

Local funding comes from School District bonds and levies that have been approved by local registered voters and paid through property taxes as described above.

Source: WASA-Washington Association of School Administrators

Anthony Lee

Anacortes, WA

  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.

 

Sal Walker

Anacortes, WA

Did You Know Anacortes revises its budget four times a year during its quarterly budget amendment process?  Citizens in Anacortes have raised concerns over the city’s 2025 proposed budget.  Comments have been submitted at the City Council meetings during budget planning sessions.  At the end of 2024, the City Council approved a $124 Million budget for fiscal year 2025.  For the 18,270 citizens, that is more than $6,800 per person, the highest rate in Skagit County.  

On a per capita basis, Anacortes is 37% higher than Burlington 122% higher than Sedro Wooley, and 135% higher than Mount Vernon as shown in Table 1.  For the past 10 years, Anacortes has increased its city budget by $75 Million, an average 15% budget increase per year while is population growth averaged 1% per year (Table 2).  

The budget amount for each year in Table 2 was from the “Final Budget File” for  each year  in the city’s budget archive.  It is worth noting that from 2022 to present, Anacortes has been using a quarterly budget review process to revise the city budget throughout  the year.  For instance, the initial Budget for 2024 was $109.4 Million.  However, on December 16, 2024 the city revised the 2024 budget number to $120.6 Million to more closely match the actual amount spent.  This is a 10% or $11 Million more than the initial budget.  Obviously, Anacortes does not really utilize a budget, instead they revise the budget numbers based on actual expenditures on a quarterly basis.

On December 2, 2024, the city published its 2025 adopted budget of $124 Million, a 3.3% increase from its 4th Quarter revised budget number or a 14% increase from its original 2024 budget number.  To balance its 2025 budget, the city council approved a 1% property tax, a 3% service rate increase and transferred $2.6 from its reserves.  In addition, the city council approved a $12 Million bond to cover the remaining balance of the fiber project, and a $4 Million loan to make up the budget balance.

The goal of a budgeting process is to allocate revenues and provide guidelines on expenditures.   There is no difference between managing a budget for a private business or a city.  As citizens of Anacortes, we have to set priorities, trim expenses and live within our means.  We require that the city council use the annual budget to hold the city government accountable in managing expenses against the budget.  From 2015-2025, Anacortes had an average 15% budget increase per year.  

A significant portion of the Anacortes population are retired seniors who are on a fixed income and do not have anywhere near 15% increase in their retirement income.  A 15% per year city budget hike is neither reasonable nor sustainable.

Sal Walker

Anacortes, WA

Did you know why Anacortes property taxes have dramatically increased over the last few years?  There are two main reasons for the increase:

  1. Assessed Value Increase:   Market value of Anacortes real estate and consequently assessed value of Anacortes real estate increased dramatically in 2023.  These increases resulted in an overall Anacortes property valuation increase of 17% in 2023 for the 2024 tax year.
  2. Levy Increase:   Voters passes a significant Anacortes city levy in 2023 resulting in a levy increase from 0.98 for 2023 to 1.34 for 2024.  This levy increase was for the purpose of adding  5 police officers and 8 firefighters to improve the safety and security of our Anacortes Community.

The combined impact of the above actions resulted in an increase of property tax revenue for the City of Anacortes from $5,684,034 in 2023 to $8,405,509 or a 49% increase.

Below is a table showing the year over year Anacortes assessed property values and the actual total yearly Anacortes City tax revenue generated.  Note the result for 2024 showing the 49% increase as compared to 2023.

The above table shows that due to compounding the overall assessed value of Anacortes property increased 148% from 2015 to 2025.  This  is an average of 15% increase per ear over the 10 year period.

In 2024 the increases in market and assessed values slowed dramatically, due to higher interest rates and lower demand.  Additionally other revenue sources for the City of Anacortes such as new construction fees and excise tax from sold properties showed declining trends.

Despite the county increasing the assessed property value and average of 15% per year, the Anacortes City Council  continues to increase the tax levy an additional 1% per year, which is the maximum allowed without voter approval.

This situation signifies a need for a “Call to Action” for Anacortes property owners. Pay close attention to City Council member decisions  on spending and planning for the next 2026 budget cycle.  You can do this by:

  1. Writing to the City Council (citycouncil@cityofanacortes.org);
  2. Attending every Monday (first four weeks each month) City Council meeting at 6PM at City Hall;
  3. Voting for City Council candidates who represent your interests.

Anthony Lee 

Anacortes, WA