$4.7 million proposed for 2022 town budget

Mayor Ramon Hayes unveiled the Town of La Conner’s proposed 2022 budget at Tuesday’s town council meeting. Taking a very cautious approach and calling this “a time of uncertainty” in his budget message to council and the community, Hayes frames “adaptability and flexibility (as the) … guiding principles in preparing this budget.” The $4,743,298 projected revenues are almost $530,000 below the 2021 budget, 10% less. Expenditures are also reduced 10%, down $602,000 to almost $5,386,000 for 2022. The budget is in deficit of $642,695 and is balanced by tapping the Town’s ample fund balance of almost $4.5 million.

The budget backs up the town council’s yearlong focus on enhancing public safety with adding $146,000 for the town’s top priority of “additional public safety services.”

Council will decide on these increases to the law enforcement budget: $33,000 is a 10% increase for the contract with the sheriff’s office; $88,000 for a code enforcement officer; and $25,000 for a vehicle.

If passed, law enforcement will be over $477,000, 9% of the town’s total budget. That is up from $335,000 this year.

Hayes praises the town’s staff for performing heroically and persevering since the start of the pandemic. The budget provides cost of living increases for all staff.

Infrastructure needs are another priority. In 2022, Hayes writes, public works will “be reducing costs in public works and sewer projects, focusing on operation and maintenance,” meaning no new projects. The five public work funds add to an increase of $23,404, 17% more, in the proposed budget, as the town rolls over uncompleted 2021 projects and prepares water and storm water capital improvement projects totaling over $2 million.

Hayes notes that “Council discussions for the 2022 Budget will include the expenditure of the $264,912 Coronavirus Funding,” federal dollars passed by Congress.

He mentions enhanced tourism promotes the “the economic viability of our community.” Yet the budget is conservative in projecting 2022 sales tax revenues, The General Fund sales and use tax projects a 30% increase of $52,500, to $227,500. Through June, revenue in this fund was at 84% of 2021’s budget.

If the town’s 2022 expenditures and revenues match the proposed 2022 budget, La Conner will have an ending fund balance in December 2022 of $2,363,653, or 50% of its start of 2022 fund balance of $4,743,298. The Town’s policy is to maintain the fund balances equal to 20% of operating revenues. The local government has succeeded spectacularly in exceeding that goal.

Council will refine the budget over the next two months and pass it at its Dec. 14 meeting.

Hayes warns of 2021’s challenges lingering through next year even as his letter expresses hope of getting past the pandemic late this year.