City of Oak Harbor
Overview
Oak Harbor's 2025-2026 biennial budget exceeds $167 million with a 39.4% year-over-year increase, earning a Starbridge budget trend score of 92 — where Starbridge analyzes adopted budgets, leadership changes, capital programs, and fiscal indicators to score cities on budget direction and spending readiness (0-100). The city is actively investing in ERP modernization, public safety equipment, and marina infrastructure, with $63 million allocated to capital projects.
Budget Analysis
The total 2025-2026 biennial budget tops $167 million, a nominal 9.4% increase over the prior biennium, while Starbridge's budget trend analysis captures a 39.4% year-over-year increase driven by higher recurring revenues from a fire levy lid lift and excess bond levy. Enterprise funds account for 42% of the budget, the general fund 25%, internal services 22%, special revenue 8%, and capital projects 3%. Investment earnings rose approximately 40%, and the city's audit shows assets exceeding liabilities by $197.95 million with $70.2 million available for discretionary spending. Anacortes increased water utility charges by $200,000 annually, a 26% increase, adding cost pressure to enterprise fund operations.
Capital Projects
The city allocated $63 million to capital projects in the 2025-2026 biennium. Marina upgrades command 32% of capital funds, approximately $20 million. ERP modernization covering financials and HR has a formal RFP issued, signaling active procurement for data migration, integration, and analytics services. Public safety equipment and facility/security investments are budgeted and planned. Parks and Recreation received an additional $100,000 for program startup.
Procurement Outlook
Oak Harbor is proactively pursuing procurement across ERP implementation, data migration and integration, analytics, and procurement/e-bidding services — the formal ERP RFP confirms active buying for enterprise systems. With $70.2 million in available discretionary capacity, a 39.4% budget increase, and $63 million in capital commitments, the city prioritizes projects with clear ROI and phased delivery.