2021 Town budget smaller, in red

Council and staff are finalizing the budget La Conner Mayor Ramon Hayes presented to them Oct. 21. He called 2020 unprecedented, noting the coronavirus pandemic and the spring’s “dramatic decreases in economic activity” when presenting his budget message to the Town Council and community.

All comparisons of the 2021 budget are against the 2020 budget as passed. Revenues through October were down 3.5% from the budget passed last December. Town revenues received a boost from the $200,000 sale of the Town-owned “Kirsch property.” Full year 2020 revenues will be below the budgeted amount of $4.97 million.

The Town’s proposed 2021 revenues will be smaller by $4.4 million, against the 2020 budget. The $175,953 budget deficit is plugged from the 2020 fund balance, or reserves.

Revenues will be down perhaps $500,000. Sales tax revenues in 2020 are down $54,000 to date from 2019, 25%. The 2020 sales tax revenue, budgeted at $470,000 makes up about half the general fund

Hotel-motel tax receipts this year are down $62,616, 37%. The 2021 projection is $88,450, a 40% drop.

Sales from compost is the bright note, estimated to increase $73,505, to $720,500.

Maria De Goede, Town finance director, noted this year’s sales tax is 74% of projected level and “that is not really all bad” in an email to the Weekly News.

Total projected expenditures next year are $4.6 million, down $1.2 million, 27%. The biggest cost savings is halting public works projects. For almost all Town infrastructure, from the drainage department through parks and port to streets, the Mayor notes “there will be no capital projects in 2021.”

Over one-third of the general fund, $331,097, is the Skagit County Sheriff’s Office contract for public safety. The proposed $899,477 general fund is down $265,531, 22.8%.

Flood control, funded at $50,000 in 2019 and 2020 at Councilmember Jacques Brunisholz’ insistence, only has $250 allocated next year.

Town staff will get cost of living increases.

The 2021 ending fund balance will be very strong. It is estimated to be $2,835,418, three times the level set by Town policy of 20% of operating revenues.

No resident spoke at the first preliminary budget hearing at Council’s Oct 27 meeting. Councilmembers had few comments, with the only concerns the $4,000 to buy a surplus sheriff’s office car slotted in code enforcement and Mary Wohleb bringing up utility rates.

Hayes was upbeat in his Oct. 21 budget message, writing: “Our town remains committed to enhancing the economic vitality of La Conner while maintaining the quality of life that makes La Conner so inviting. Each department has worked diligently to keep expenses down without compromising services to our citizens.”

Council will pass the budget at its December meeting. The Town’s fiscal year is the calendar year.