The increase was largely driven by capital spending increases in water, sewer and storm utilities.
City Finance Director Steve Hoglund told the Council at their Monday night meeting that $1.2 million is for a new sewer scrubber, $400,000 for a new 3-million gallon water storage tank, $200,000 for pond maintenance in the storm drain system and another $75,000 for early design work on an improved Commercial Ave. between 12th and 32nd streets.
Out of the budget is new employees the Mayor had asked for, including a city communication person. Instead, the revised budget includes $70,000 to develop a “communications strategy,” which may include hiring a contract worker.
The Council had earlier approved a one-percent property tax increase, which will give the city only about $48,000 in added revenue.
Anacortes remains one of the lowest taxing cities in Skagit County with a 2015 general millage of $1.76 per $1000 of assessed value, generating a 2015 property tax levy of $4,642,472. Property taxes are the City’s single largest governmental revenue stream.