The Skagit County Public Utility District Board of Commissioners adopted the 2026 operating budget of $21,720,606 at their November 12 meeting, representing a 1.8% increase over 2025.

The budget prioritizes maintaining existing water system infrastructure and replacing critical components nearing the end of their useful life. Department managers presented their operational and capital budget requests during three public work sessions following an initial public hearing on October 14.

Operating expenses increased $385,269, primarily driven by cost-of-living adjustments and healthcare benefit increases totaling $254,903. These increases were partially offset by two fewer staff positions and a decrease in the Public Employee Retirement System contribution rate.

Other significant budget increases include maintenance contracts ($36,000 for fiber, copiers, and AV services), cybersecurity and cloud data backup ($119,728), and utilities ($63,900 for fiber, sewer, gas, and electricity).

Commission President Andrew Miller emphasized the importance of transparent budgeting in maintaining public trust. "When we have the conversations in the Fred Meyer parking lot, we're able to explain to people how it is that we're being such just stewards of these funds and making sure that we have safe and reliable water," Miller said.

The budget incorporates a 5% increase in base water rates, blocks one and two water rates, system development fees, and installation charges effective January 1, 2026. Block 3 water rates will increase 8.5% to encourage conservation during peak summer months. The rate adjustments are projected to generate an additional $1.6 million in revenue to fund capital improvement projects.