Washington utilities report 15.2% revenue increase driven by electricity and gas

The City of Anacortes City Council meeting held on April 21, 2025, focused on financial updates and utility revenue trends. The meeting began with a report on the city's revenue performance, highlighting a significant increase of 15.2% in the first quarter compared to the previous year, which had seen a decline of 3%. This positive trend marks a notable recovery in the city's financial landscape.

Key discussions centered around the sources of this revenue growth, particularly in the electricity and natural gas sectors. Over the past three years, these areas have shown substantial increases, contributing significantly to the overall tax revenue. The council noted that while there were minor increases in telecommunications and solid waste revenues, these were not material to the total tax revenue.

Further analysis revealed that the rise in electricity and natural gas revenues in 2025 was influenced by a new fee introduced under the Washington Climate Act, effective June 2024. This fee requires the use of cleaner natural gas, which is more expensive to refine, thereby impacting costs for consumers.

The council also addressed the public utility tax, which is assessed against the city's utilities, including water, sewer, solid waste, and storm sewer. Due to personnel challenges in the finance department, the March month-end report was not completed on time, leading to the use of February's figures for estimation. Despite this, the preliminary data indicated a 7.4% increase in public utility tax revenue compared to the previous year, aligning with expectations following an 8% increase the year before.

In conclusion, the meeting underscored a positive financial outlook for the City of Anacortes, driven primarily by increases in utility revenues. The council plans to continue monitoring these trends and addressing any challenges in financial reporting to ensure accurate and timely updates in the future.