Oak Harbor restructures clean water facility debt

The council approved raising utility taxes but reducing sewer rates to provide the community savings

In a 6-1 vote, the Oak Harbor City Council approved the debt restructuring for the clean water facility. With two unanimous votes following, the council approved raising utility taxes but reducing sewer rates to provide the community savings overall.

The state provided five loans to fund the clean water facility, said Deputy City Administrator David Goldman at a recent city council meeting, and one municipal bond was taken out.

The resolution states that sewer rates would drop from $118.41 to $95.60 next year, which would create a revenue loss of $145,000 in the city’s general fund. To make up for this, 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, officials said it won’t be enough to fund some of the city’s pressing needs, such as indigent defense, a cyber security administrator and increased police department staffing. Bumping utility taxes by 3% will cover the other costs while adding around $6 to the utility rates.

This brings the sewer rate to $102.41. Residents would still save $16 overall per month, he said.

The sole naysayer was Councilmember Jim Woessner, who pointed out the increased cost this would add to water and garbage. Further, this change extends the time it would take to pay off the loan.

“The idea of stretching out the payments just so we can save ratepayers money now to collect more money from them later on, I don’t want to pass this on to my kids,” he said. “I just don’t.”

Councilmember Eric Marshall pointed out that Oak Harbor is bracing to bring on a larger population, which will help with the cost in the future. With more people, the burden of the cost will lessen, and the rate may lower.

The change will also provide net savings to businesses, said Councilmember Bryan Stucky.

While Councilmember Shane Hoffmire voted for the resolution and both ordinances, he had stated before that he would prefer a business and occupation tax to cover the cost.

“That said, I see zero sense in turning a really good thing into a negative,” he said, “and as I look over to the left I see (Police) Chief Slowik and Captain Barton seem to be on pins and needles, so it is a moment of levity that this does matter, and this could save lives.”