Oak Harbor finance director reports stable midyear finances, flags transportation funding risks

Deputy City Administrator and Finance Director David Goldman presented the City of Oak Harbor’s 2024 preliminary (unaudited) financial results and revenue trends through mid-2025 at the Sept. 16 council meeting.

Goldman said 2024 total general fund revenues were $26,400,000 with expenditures of $22,300,000, producing an increase in fund balance of about $4,100,000 and bringing the general fund balance to roughly $32,300,000. He noted the unencumbered general fund balance rose from $8.8 million in 2023 to about $10.1 million in 2024.

Goldman reviewed enterprise funds (water, sewer, storm, solid waste, marina) and said net positions generally improved year-over-year while available net position decreased in part because the council adopted a facility and infrastructure replacement reserve. He identified several revenue trends: property tax growth near 1% plus new construction (with a 3.1% midyear uptick noted), temporary sales-tax increases tied to construction activity, and lodging-tax increases near 9% midyear.

Goldman warned that motor vehicle fuel tax and Capron funding (gallons-based) are declining over time as fuel consumption falls, and that the city must monitor those and real estate excise tax reliance for street projects. He said the state adopted a small tweak that could bump motor vehicle funding by 2.6% but called it a short-term measure.

Council members asked follow-up questions about the transportation benefit district timeline, business-license revenue earmarking, and long-term risks. Goldman said staff will return with options and an update next year if trends require action.

The hearing was informational; no action was required or taken.