2023 Town budget tops $6.9 million

The 2023 budget the La Conner Town Council passed Dec. 13 is robust in its expenditures, at $6.97 million and modest in its increase in revenue, to $5.6 million. It is a deficit budget of $1.37 million, with reserves covering the difference.

Expenditures will be $1.1 million more than projected for 2022, almost 19% higher. Five funds will increase by a total of $1.1 million next year: The general fund increase of $215,874 will include staff raises of 7.3% for administration and 3% for public works. Replacing the fire hall roof is $180,000, partially covered by the cell tower lease reserve fund. The fire hall heating system cost of $50,000 will be paid with federal coronavirus funds.

Replacing Maple Hall’s heating and air conditioning is a $162,000 cost, most of the $176,350 increase in the facilities fund.

Funding the Town’s water plan update is $135,000, with $65,000 more for an asset management program.

The $300,000 increase in the compost program has $250,000 for repaving and pads, and $50,000 for replacing the mix auger.

The $802,892 in storm drainage costs is covered primarily by $767,941 in reserves, paying for several projects: Street projects at Whatcom and Laurel; Maple and Caledonia and East Washington total $435,000. Updating the storm water plan is $40,000

Water projects are $172,500 for a plan update, $135,000, operation and maintenance, hydrant and water replacement, $0,000, and $7,500 for an analysis of the Skagit Beach main.

Operating costs for public safety: the Skagit County Sheriff’s office contract, the Town’s code enforcement program and the fire department – will make up 9.4% of the budget, at $658,000. The contract with the sheriff’s office increased 9%, to $369,017. The code enforcement program is another $60,000, half in salary and benefits. The $226,092 fire department expenditures have increased 31%, as upgrading equipment and training has become a frequent concern the past year.

The department now has a half-time fire chief in Aaron Reinstra, a fulltime Town employee with code enforcement duties. Likewise, some equipment and maintenance costs are split between the two units.

The fire truck bond was paid off in 2022. The special fund safety tax be banked for for future fire apparatuses.

Councilmembers are investing $7,000 in a planning retreat.

Town revenues are projected to increase 9%, to almost 5.6 million, a conservative increase from 2022’s budget. Revenues for this year are above that total with December not yet tallied. In 2021 the actual revenue was $6.1 million. Mayor Ramon Hayes again expressed caution in his budget message, writing, “we are still in a time of uncertainty with expected decreases in our tax revenues and increases in cost and materials ... . Storm clouds appear on the horizon as many economists report the advance warning signs of a recession.”

Tax revenues derived from tourists have been robust monthly for over two years. Revenues from sewer and compost operations have also exceeded projection in 2021 and 2022. The 2023 budget is again cautious in projecting growth from every revenue source.

Hayes has led the Town administration to be frugal in projecting revenue and expending actual dollars, yearly. This year, expenditures are $1.7 million below the annual budget.

The end of 2023 projected fund balance, or reserves, is $4.3 million, over 75% of 2023 revenue. Town policy is to maintain the fund balances equal to 20% of operating revenues. The mayor and council members have long discussed the need for major water main and wastewater treatment plant infrastructure projects. The Town’s reserve fund continues to grow.