Anacortes Council Hears Public Comment on Proposed 1% Property-tax Levy, Utility and Sewer Rate Options

The Anacortes City Council held a statutorily required public hearing Oct. 6 on the city’s proposed 2026 revenue sources, including consideration of a 1% increase to the city’s property-tax levy.

City finance staff reported the draft 2026 revenue projection at about $111,588,000 and said the property-tax levy is the city’s largest single tax stream at $8,500,000. Staff explained that a 1% increase in the levy would add roughly $85,000 to that total; using the example in staff’s presentation, a home assessed at $750,000 would see the city portion of the tax rise about $9.84 per year (the city portion of the sample bill was shown as $983.94). Finance staff also explained that because state assessment changes alter the millage rate, the council controls the total levy amount (the dollar levy) rather than the millage rate itself.

The hearing mattered because council will use these revenue projections to finalize the 2026 operating and capital budgets and because staff outlined several potential rate actions that would affect utility ratepayers and the general fund.

Finance director (staff) presentation and council discussion

City finance staff reviewed the major revenue categories underlying the draft budget. Highlights presented to council included: - Property-tax levy: $8,500,000 (city portion). A 1% levy increase equals…