Oak Harbor officials said the City Council has adopted a business-and-occupation tax to help pay for dredging and breakwater repairs at the city marina, with the tax scheduled to take effect Oct. 1.

The tax will apply to gross receipts above set thresholds and is intended to raise local revenue to fund marina repairs that council members and staff said were deferred for more than 20 years. Mayor (name not specified) said the council "felt this was an appropriate measure to assure the future of the marina and Harbor Bay for recreation, wildlife, and tourism."

Why this matters: city leaders say the marina’s dredging and breakwater repairs are time-sensitive and costly, and they argue local revenue is needed to avoid larger future costs to taxpayers. Officials also noted that dredging work must occur in a restricted seasonal window to avoid impacts to salmon rearing.

City staff reported that dredge permits have been submitted and that work should begin during the 2026–27 fish window, Aug. 15 through Feb. 15. The administration said it is also exploring the option of forming a port district and bringing that proposal to voters in the future.

Council and staff said the adopted tax was the product of more than a year of analysis: the mayor said the decision followed "14 meetings, 2 open houses, and multiple public comments." The city created an FAQ web page about marina funding to address residents’ questions, the mayor added. Preliminary revenue estimates presented by the administration projected up to $800,000 annually from the new tax; the tax applies to gross receipts over $4,000,000 a year and $1,000,000 per quarter, according to the mayor's remarks.

City officials also said they are pursuing grants and federal funds to reduce local costs. The marina has partnered with Island Transit to add on-demand transit service for marina users, and staff described ongoing community programs such as coho salmon rearing at the marina.

Remaining questions: the transcript records the council’s adoption of the tax and preliminary revenue estimates but does not include a council vote tally, the ordinance number, or the detailed tax rate structure. The mayor and staff noted the council’s intent and timing for dredging permits and work, but exact contract awards, construction schedules and total project costs were not provided in the address.