Anacortes mayor outlines grim finances, plans sprint to speed permitting and boost waterfront economy

Mayor Walters delivered the State of the City at the April 6 Anacortes City Council meeting, saying the city's finances remain strained and proposing a three-part agenda: conserve, reform and invest.

"The city's financial situation remains grim," Walters said, noting cumulative inflation of roughly 26% since 2020 and state limits that cap property-tax receipts growth to 1% per year. He warned that constrained revenue growth is forcing service and staff reductions elsewhere, and said the city must diversify revenue and support economic growth to avoid further cuts.

Walters announced a renewed emphasis on economic development in partnership with the Port of Anacortes, including investment in a waterfront event center intended to spur local commerce and tourism. He also said a new permit and build page will appear on the city website and promised an executive order that sets a 14-day target for first review of residential permit applications and consolidates permitting roles to reduce handoffs.

The mayor credited staff for early savings — preliminary analysis shows the lowest first-quarter spending as a percentage of budget in five years — but said savings alone will not close the gap. "Saving money buys us time, but it doesn't solve the problem," he said, urging council support for permitting reforms and targeted investments like the event center and street paving.

Walters closed by thanking volunteers, staff and community partners and stressing three themes for the administration: community, collaboration and communication.