‘Small footprint, big responsibility’: Chelan lays out vision at State of the City

CHELAN — Standing before a packed room at Campbell’s Resort on Jan. 22, Mayor Erin McCardle described a city that may cover just 6.7 square miles, but serves as the center of gravity for a much larger valley.

Chelan’s 2026 State of the City address, held at 6 p.m., drew residents, city staff, and an unusually broad cross-section of local, regional, state, and federal partners for an evening focused as much on coordination and capacity as on budgets and projects.

McCardle was joined in presenting by City Administrator Laura McAloon, who has been on the job only a few weeks but played a central role in organizing the event and framing the night’s purpose. McAloon opened by welcoming the crowd, praising the city’s staff, and noting that the gathering also served as the kickoff for the 45-day public comment period on the airport runway realignment environmental review.

She emphasized that the runway project remains in an early, exploratory phase and that public input will shape what happens next.

The mayor’s presentation returned repeatedly to the scale of what Chelan is responsible for. Beyond serving its roughly 4,500 residents, the city provides wastewater and other services for much of the Lower Lake Chelan Valley and functions as the region’s transportation and service hub, while hosting an average of about 12,000 visitors per day during peak season and as many as 40,000 on major holiday weekends.

Chelan operates water, sewer, sanitation, parks, a marina, a golf course, and an airport, and sits at the crossroads of two state highways.

That scope, McCardle said, is why conversations about growth, tourism, housing, and infrastructure are not abstract policy debates, but decisions that shape daily life throughout the valley.

She also emphasized Chelan’s role under the Growth Management Act as the valley’s designated urban center, a structure meant to concentrate growth in the city while helping preserve surrounding agricultural lands.

For 2026, the city’s operating budget is about $7.4 million. The total budget, including utilities, parks, tourism, and capital projects, stands at about $33.3 million in revenue and $38.7 million in expenses. McCardle said the gap reflects years of saving for major infrastructure investments that are now moving into construction.

She pointed to the unusual structure of Chelan’s tax base as part of how the city manages seasonal demand. About 35 percent of utility tax revenue comes from second-home owners, and roughly 60 to 70 percent of retail sales tax is generated by visitors, revenue that helps support infrastructure sized for peak summer use.

Looking back at 2025, McCardle described a year of significant momentum, highlighted by more than $18 million in regional, state, and federal funding secured for infrastructure, parks, transportation, and planning.

Among the accomplishments she cited were the launch of the comprehensive plan update in coordination with Chelan County, major progress on water and sewer projects including downtown upgrades and the airport water line, completion of the Lakeside Trail and design work for multiple street and pedestrian projects, renovation work beginning at Lakeside Park, and major movement on housing, including the Weidner Apartments and full funding for infrastructure to serve the Chelan Valley Housing Trust project on Anderson Road.

She also highlighted behind-the-scenes work, including modernization of budgeting practices, creation of an in-house construction management position, another clean state audit, and expanded community engagement tools such as citywide text alerts and the city’s first community satisfaction survey.

Looking ahead, McCardle described 2026 as a year focused on delivery.

Priorities include completing the comprehensive plan update and launching “sub-area” planning for the waterfront and key corridors, adopting a six-year transportation plan backed by the Transportation Benefit District, undertaking the largest water and sewer investment in the city’s history through the airport water line and East Chelan Reservoir projects, reopening Lakeside Park with ADA improvements and a new inclusive playground, and continuing expanded support for youth programs, including the city’s partnership with the Boys & Girls Club.

Clean water, she said, is not just infrastructure but a foundation of the community’s identity, and she reiterated the city’s commitment to programs such as Keep It Blue Lake Chelan.

McAloon also formally introduced the city’s leadership team: Finance Director Heidi Evans, Interim Parks Director Audrey Cooper, Public Works Director Jake Youngren, Community Development Director John Ajax, HR and Communications Director Chad Coltman, and City Clerk Peri Gallucci, who was not present and was represented by Deputy Clerk Cailey Couch.

All seven city council members were noted as participating either in person or via livestream.

Throughout the night, McCardle returned to a central theme — trust.

The work ahead, she said, depends on clear priorities, supported staff, and delivering projects as promised, while continuing to involve the public in decisions that will shape Chelan’s future.

She encouraged attendees to visit the information tables in the hallway, speak directly with staff and partner agencies, and stay engaged as the city enters what she described as one of the most consequential periods of investment and change in its history.

Andrew Simpson: 509-433-7626 or andrew@ward.media