Anacortes mayor says city faces 'grim' finances, unveils permitting reforms and $515,000 event‑center grant

Mayor Ryan Walters told the Anacortes Chamber luncheon that the city’s operating finances are under sustained pressure from inflation and limits on property‑tax growth, and outlined a three‑part response: “conserve, reform and invest.” Walters said widely cited budget figures need context — “we do not have a $9 million deficit,” he said, explaining that departmental requests (especially from public works) produced that aggregate figure and that, when some requests are excluded, the near‑term gap was closer to $2 million.

Walters framed the problem as structural: roughly $8.5 million of the city’s general‑fund revenue comes from property tax, about $6 million from sales tax and $4.5 million from utility tax, he said, and property‑tax growth is tightly constrained (the city typically increases levy collections by 1% annually or through voter‑authorized levies). “We’re losing ground,” he said, noting cumulative inflation since 2020 of about 26 percent and that sales‑tax growth has not offset that erosion amid weak construction activity.

To respond, Walters said he issued an executive order directing staff to conserve cash where possible, reform internal processes to improve efficiency, and invest strategically in projects that can generate economic returns. He announced a sprint to improve permitting performance, including a 14‑day target for residential permit reviews, consolidation of planning reviews to reduce handoffs, an appointment system for planners, and proposed code amendments to clear impediments to business expansion (Walters cited a pending change that would allow vehicle‑repair uses in industrial zones instead of restricting them to commercial zones).

Walters tied permitting reform to economic and fiscal aims: speeding housing and business development, he said, will both meet community needs and increase the city’s revenue base. He thanked planning staff for a recent comprehensive plan and development code update and said future code amendments will go through the public process with the planning commission and council.

On capital projects, Walters said the Port City Event Center is advancing and the city secured $515,000 from the state legislature for the project with the support of Senator Lovelett and Congressman Larson. He contrasted that success with a separate South Commercial Avenue paving request that did not survive the House transportation budget; Walters said the paving project is estimated at more than $3 million and that the city will continue to pursue legislative funding and grant opportunities. He also described ongoing work on depot‑plaza expansion, skate‑park improvements, Hart Lake shoreline and municipal fiber, and said planning on the Guemes Channel Trail will progress this year.

At the end of his remarks Walters took a question about whether South Commercial paving would include a crosswalk near 26th Street for safer hospital access. He said the city plans enhanced crosswalks at signalized intersections (including 29th) with curb bulb‑outs and that he would raise the suggestion with public works and consider adding another crossing to improve grant competitiveness.

The mayor’s presentation emphasized constraints on local revenue and the administration’s approach to grow the tax base while tightening near‑term spending. Walters closed by asking for public and intergovernmental collaboration to support economic growth and community projects.

Sources: Mayor Ryan Walters’ address to the Anacortes Chamber luncheon. Quotations and figures are taken from the mayor’s presentation.