Anacortes council holds required public hearing on 2026 revenue; discusses 1% levy, utility tax and rate options

Acting Chair Council Member Young opened and closed a statutorily required public hearing Oct. 6 on the City of Anacortes’ proposed 2026 revenue sources, during which city finance staff reviewed revenue projections, property tax mechanics and a set of options to close projected gaps in the general fund.

The city’s finance manager summarized the revenue picture and said the proposed draft budget includes a 1% increase to the city property tax levy and described how that levy interacts with changing assessments. Council also heard from one resident, Pat Gardner of Anacortes, who urged the council to disclose the combined effect of market revaluations and levy increases on residents’ total tax bills.

City finance manager presentation and key numbers

The finance presentation described total draft 2026 revenues of about $111,588,000 and identified property tax as the single largest local tax stream in the draft budget, budgeted at $8,500,000. Staff explained that a council-authorized 1% increase on the existing levy would, at the current levy level, equal roughly $85,000 in additional revenue and that the council controls only the dollar amount of the levy request (the levy total), not the millage…