The Anacortes City Council voted unanimously on Nov. 24 to adopt the city’s 2026 operating budget and the companion capital facilities plan, a package staff said must be adopted together.

Council adopted the operating budget after a presentation from Finance Director (Mister Hoagland) and debate about long-term revenue pressures. Hoagland said the capital facilities plan must be adopted alongside the operating budget; council moved and approved Ordinance 05/09/2026 for the operating budget and the ordinance for the CFP later in the meeting.

Council members repeatedly cautioned that general revenues are declining, driven in part by slow growth in property-tax receipts. Councilmember Walters said the city must “conserve expenses” and look to generate more sales tax and economic activity to avoid repeating current fiscal strains. Walters also noted many 2026 capital projects are funded by restricted or one-time sources such as real estate excise tax or REET-funded projects, limiting their use for staffing and general operations.

Several council members thanked staff for putting the budget together under difficult conditions. Councilmember Young praised staff effort; Mister McDougall and others urged continuing emphasis on projects that can generate unrestricted revenue, such as the event center and broadband/fiber projects.

Teresa Baker, speaking during the capital facilities plan public comment period, questioned use of certain funds she found in the draft budget and urged that opioid-related funds be used for rehabilitation purposes. Council and staff responded that the proposed Oak Harbor training facility is not part of the city budget or funded by opioid dollars and that a resolution clarifying opioid funding will be brought forward the following week.

The council’s vote was unanimous on both the operating budget (Ordinance 05/09/2026) and the capital facilities plan (Ordinance 5010/2026). Mayor Miller adjourned the meeting after the approvals. The city will implement the adopted budgets and staff will follow up with any clarifying resolutions or action items as noted during the meeting.