Ire over utility rates leads to council member pledge

A new council member promised that he won’t vote to raise utility rates over the next four years.

One of Oak Harbor’s new council members promised that he won’t vote to raise utility rates over the next four years, although a 2020 study concludes that rate hikes will be necessary for years to come.

Councilmember Shane Hoffmire made the pledge in response to a resident who voiced concerns at the Feb. 1 council meeting about another hike in the overall utility rate bill, which cover water, sewer, wastewater, storm drain and garbage services.

Barbara Armes said her most recent bill increased from $184 to $195 a month. She asked why all the new housing being built in the city hasn’t translated to lower rates for current residents. She also suggested putting a freeze on increases.

“If you have a family, there is no way you can pay $195 a month,” she said.

During the council comment period, Hoffmire said he knocked on 7,300 doors during his campaign and literally heard from thousands of residents who complained about utility rates. He said something has to be done.

“If you look at the median income in Oak Harbor, we’re talking roughly 5% of someone’s income just to flush the toilet and have the garbage hauled out,” he said.

Mayor Pro Tem Beth Munns said the council agonized about increasing rates but had little choice; she pointed out the county’s trash tipping fees increased significantly.

She said a rate study on water and trash hadn’t been done prior to the most recent one.

“We found out we were living in la la land and probably should have been fined for not keeping up,” she said.

City utilities are run as enterprise funds, with the fees from ratepayers funding each one independently.

In response to a query from Hoffmire, City Administrator Blaine Oborn acknowledged that city general fund money can be used to offset utility bills. In fact, Mayor Bob Severns authorized the transfer of $400,000 from the general fund last year to lessen the increase in sewer bills, he said.

Both Oborn and Councilmember Jim Woessner said American Rescue Plan Act money can be used to fund capital projects instead of using utility funds, which would mitigate the need for rate increases.

The city’s new wastewater treatment plant has continued to rack up new costs since coming online at the end of 2018. The city’s capital improvement plan lists $3.4 million worth of sewage-treatment related projects for 2012-2022.

A total of $2.3 million in stormwater projects was also listed. The largest project is a $950,000 feasibility study to see if the Freund Marsh can be used as a detention and pre-treatment pond for runoff from development. At least one city staff member questioned whether the city should be doing a costly study to benefit one developer.

The biggest ticket on people’s utility bills is sewer; it accounts for $122 of a $195 monthly bill.

The city’s rate study said the sewer rate should increase by 9.5% annually 2021-2023 and 4% a year after that.

The city is planning a new rate study.