As Skagit PUD prepares its 2026 budget, the focus extends beyond next year’s projects to address challenges facing water utilities across the Pacific Northwest. Rising construction costs, evolving regulatory requirements, and aging infrastructure needs are shaping how the district plans for the future.
The proposed budget is expected to include a rate adjustment to address rising costs and infrastructure needs, with the exact amount to be determined based on final budget requirements and community input. “We’re balancing immediate operational needs with long-term infrastructure sustainability,” says Finance Manager Brian Henshaw. “Every dollar invested today protects our community’s water supply for generations.”
Key 2026 investments include:
Major Infrastructure Projects. The capital improvement plan allocates $15 million for critical improvements. Major projects include a $2.9 million water treatment plant generator and $2.75 million disinfection system replacement. The budget also dedicates $5.15 million to pipe replacement projects, including $1.5 million for pipeline relocation at the Alger – Interstate 5 interchange and significant pipeline replacements in Conway and Mount Vernon’s Hillcrest areas. The district’s 10-year plan anticipates $150 million in total capital improvements.
Operational Efficiency. The 2026 operating budget of $21.8 million is a 2.3% increase over 2025 due to salary and medical cost adjustments. Favorable changes in employer retirement contribution rates, combined with strategic staffing decisions, help offset rising costs for medical benefits, treatment chemicals, energy, and equipment. This disciplined approach maintains service levels while controlling expenses.
Technology & Security. Investments in enhanced network security and Supervisory Control and Data Acquisition (SCADA) improvements protect against cyber threats while improving operational efficiency. These upgrades ensure reliable system monitoring and control.
The Board of Commissioners will review the proposed budget at public work sessions this fall, with potential adoption in November. Community input helps shape spending priorities.
You can review the budget documents and meeting schedules on our website.
