Town remains cautious on 2025 budget outlook

During the week they shifted historic South First Street one-way southbound traffic flow, La Conner’s leaders put the brakes on any free-wheeling budget plans for 2025.

Town Administrator Scott Thomas shared a tight financial forecast with Town Council members at their Oct. 8 meeting, confirming projections submitted in writing by Mayor Marna Hanneman.

“This is a tight budget year,” Thomas stressed. “Inflationary costs have risen dramatically. Expenses are going up. I’ve told the staff this is a year that we have to cut and choose.”

Hanneman presented a working budget plan that anticipates $8 million in revenues and $8.9 million in expenditures, requiring tapping monies from general fund reserves.

“Our sales taxes have slightly declined,” Hanneman explained, “and while hotel/motel taxes in 2024 continued to increase, we are still in a time of uncertainty with expected continued decreases in our tax revenues and increases in costs and materials.”

Hanneman stressed that “adaptability and flexibility” are the budget proposal’s guiding principles and its theme is ‘Plan, Prioritize, Perform.’

“As we move forward,” said Hanneman, “we must remain vigilant in managing inflationary effects and navigating the changing economic landscape. While our (revenue) projections for fiscal year 2025 are optimistic, we must continue to explore new revenue streams and operate more efficiently and effectively to pave the way to long-term fiscal stability.”

Hanneman said the Town is committed to investments in upgraded infrastructure, flood risk mitigation and essential public safety measures.

She offered as an example the commitment to a $163,500 expenditure to “begin the process of purchasing (a) new fire boat.”

Thomas said he was hesitant to bring up new sources of revenue, but one option would be a utility tax.

“Most cities do that,” said Thomas, noting again that “it’s difficult to talk about taxes.”

Councilmember MaryLee Chamberlain lamented the impacts inflation has had on municipal budgets around the country.

“The cost of everything has gone up,” she said, “and it’s everywhere.”

“Everybody is feeling it,” Hanneman said. “The town is feeling it. People are feeling it. It’s just costing more to live. (Public Works Director) Brian (Lease) goes out to bid and the costs are double and triple what was anticipated. I know every town and community is having the same problems.”

The mood wasn’t entirely bleak, however. Chamberlain quipped that the fire department could maximize its assets on behalf of the town.

“Maybe the fire department should have a (fundraising) calendar,” Chamberlain suggested.

“That’s been talked about,” councilmember and La Conner firefighter Ivan Carlson chuckled.

“Too many times!” said Fire Chief Aaron Reinstra.

The budget process will continue through the fall with final approval in December.

In her written report, Hanneman was mindful that budgeting is always susceptible to change given economic volatility.

“What this means,” she said, “is that we are making choices in an uncertain economic environment and we must be strategic.”

Hanneman also shared that 82 surveys have been completed providing public input for the ongoing south end land use study.

The council welcomed an offer by Skagit County Assessor and former Shelter Bay resident Danny Hagen to attend a meeting.

Councilmember Rick Dole reported that Doug Asbe is the new chair of La Conner’s Emergency Management Commission. He noted again there are two vacancies.

Jerry George, who just finished a stint as chair, lamented, “We need two people desperately.”