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A Battery-Powered Future for the Guemes Island Ferry

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

The Escalating Cost of Living in Anacortes: 2015 – 2025

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

 

What is the Difference Between a Bond and a Levy?

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

Challenging the Anacortes Budget Planning Process

  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

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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