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Anacortes City Budget

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

Why the Dramatic Increase in Anacortes Property Taxes

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

How to Appeal Your Property Assessed Value

Did You Know that if you disagree with the County Assessors valuation of your property, you can appeal for a review?  To successfully appeal the assessed value of your property, you must show by clear and precise evidence that the value established by the Assessor is incorrect.  Some key examples as to why you might want to file such an appeal are: 

  •  Loss of view            
  •  Incorrect reporting of square footage of lot or home;    
  •  Incorrect valuation of your home relative to recent recorded  home sales in your direct neighborhood for homes of similar size and features;    
  •  Change in the condition of the property;           
  •  Change in the condition of the neighborhood.   

 

To appeal your real property valuation, you can: 

  1. Call the  County assessor’s office (360) 416-1780  and talk to a staff member regarding the reason why you disagree with the property valuation. 
  2. File Petition:  If your issue cannot be resolved through a telephone call, you can elect to file a relatively easy form called an “Appeal Assessed Valuation of Property”.  (You can access this form by going to the County Assessor’s website.  Click on “Find it Here” and then “Forms”.  In the drop-down menu click on “Appeal Assessed Value of Property”.)  You will be asked to submit the form to the County Board of Equalization that will review and make the decision regarding your appeal.

 

 Your appeal needs to be submitted to the Board of Equalization within 30 days of your being notified of a valuation change or by July 1 of the assessment year, whichever is later.   Your submitted form should include the pertinent information that describes the differences between the assessor’s value and what you believe to be the value of your property.  For example you may want to include pictures, comparisons of recent sales of similar properties in your neighborhood and/or architecture designs with documented square footage.

Caution:  Be Patient:  The Appeal process may take 30-60 days, so be patient. You will receive notice of the status of your appeal and/or you may hear directly from an assessor assigned to review your appeal.

Don’t submit a frivolous appeal:  Keep in mind that your appeal is going to receive serious consideration as well as a thorough analysis of your property and the information you have provided.  Submitting a frivolous appeal and/or without proper documentation is not recommended. If you would like further information from a citizen that has successfully experienced the appeal process, you can email to info@did-you-know-anacortes.com.

Anthony  Lee

Anacortes, WA

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