Oak Harbor leaders are asking state legislators for $20 million in debt forgiveness on the Washington State Department of Ecology loan for the sewage treatment plant, as well as an extension of the remaining loan term from 20 to 30 years at the existing rate.
The request is part of this year’s legislative priorities, adopted by city council at a meeting earlier this month.
The current debt for the sewage plant is $116 million, and payments will continue until 2046. This debt leads to a cost of over $1,000 per household per year. That does not include maintenance, operations and capital replacement costs.
The city completed the state-of-the-art sewage plant in 2018, resulting in the highest sewer rates in Washington State at $122.07 per month. The rate does not include water, storm, or solid waste, which adds up to over $221 per month for customers. The request would reduce the rate by $34.28 per month.
“The specific capital funding request is a stand-alone top legislative priority and would certainly be the most impactful,” Councilmember Shane Hoffmire wrote in an email. “That said, it very much ties into all our priorities, most specifically investing in local infrastructure and environmental sustainability.”
The 2023 priorities are broken down into seven categories. According to the city’s website, the purpose of legislative priorities is to provide staff and council members with a simple document to present to legislators when lobbying on the city’s behalf.
Investing in local infrastructure, the first priority, is described as securing additional funding to create and improve public facilities and expand utility services, including broadband access.
Environmental sustainability is the pursuit of environmental regulations to assist municipalities with policies that protect endangered marine life, including salmon, bull trout and orcas.
Transportation enhancements include funding maintenance and road preservation projects.
Housing availability is described as partnering with Island County, state and federal agencies to expand workforce housing options.
Economic development is assisting with job retention and growth by developing programs with businesses and partnering with other municipalities and counties.
Supporting public safety is described as supporting first responder-endorsed modifications to new legislation that impact emergency service staff’s ability to support the community.
The last priority is providing support to Naval Air Station Whidbey Island through partnerships with the city.
Hoffmire said the list was shared with the Association of Washington Cities, U.S. Rep. Rick Larsen and lawmakers in the state’s District 10.
