Oak Harbor leaders are considering raising utility taxes but reducing the sewer rates to provide the community savings overall.

Last month, council members expressed interest in moving forward with restructuring the debt for the city’s clean water facility. In the prevailing option, sewer rates would drop from $118.41 to $95.60 next year.

This would create a revenue loss of $145,000 in the city’s general fund from utility tax. At a recent city workshop, Deputy Administrator David Goldman proposed a 0.582% increase spread across each of the city’s utility tax rates — water, sewer, solid waste and storm drain — to make up the cost.

While this ensures the city breaks even while lowering the sewer rate, it won’t be enough to fund some of the city’s pressing needs. Indigent defense, a state requirement, was approved in March with no funding identified. The city must also bring on a cyber security administrator, and council expressed interest in fulfilling the police department’s increased staffing needs.

These additional services fell briefly into the abyss after no motion was made for a proposed business and occupation tax last month. Because of this, Goldman presented the option to raise the utility taxes.

Councilmember Shane Hoffmire did not support a tax increase. He’d prefer a business and occupation tax for businesses exceeding $5 million in annual profits. This would only affect the larger companies, like Walmart, Haggen and Safeway, which require the most police presence anyway.

Goldman acknowledged Oak Harbor’s utility rate is generally considered very high, though it’s not far off from the state’s average.

Goldman said he attended a national conference recently where someone from a utility district in another state was complaining about having to raise their utility bill to $53.

“They were eating food, right? So, I had to wait until they were done eating before I told them where we’re at,” Goldman said, “because I don’t want them to choke, then I’d feel horrible.”

The indigent defense costs are a state requirement, Mayor Ronnie Wright said, and compared to the state’s averages the price increase is not an unfair burden to the community.

“I think this gets us a little closer to where we need to be,” Councilmember Eric Marshall and, “and still saving the rate payer at the end of the day. I’m all for it. Yeah, absolutely.”

The rate restructuring will return to council at the July 9 meeting for a vote.