Oak Harbor approves raises and revised benefits, council moves unanimously

The Oak Harbor City Council on Dec. 23 approved a package of pay increases and benefit changes for municipal employees, moving quickly to respond to rising inflation and retention concerns. After presentations from Finance Director David Goldman and Human Resources Director Emma House, council members unanimously authorized a 2.5 percent cost of living adjustment for non represented employees and approved a three year labor agreement with the Teamsters Union covering Marina, Parks and Public Works staff.

City leaders had included a 2.0 percent cost of living adjustment for non represented employees in the 2025 through 2026 biennial budget, but Goldman recommended raising the 2026 adjustment to 2.5 percent because of inflation. That additional half percent will cost the city an estimated $29,123.70 in a year. The Teamsters agreement sets cost of living adjustments at 2.5 percent for 2026, and 1 percent for each of 2027 and 2028.

Councilmember Jim Woessner said he was pleased with the decision and noted the city has been working to bring non represented employees pay up. The council also unanimously approved a revised employee policy manual that changes benefits and workplace practices across departments.

The revised manual adds items such as service recognition, retention pay, transitional work options, and an option to transfer accrued vacation into deferred compensation plans. It removes the existing shared sick leave program and the wellness membership fee incentive. Instead the city will provide a gym membership to a local facility for employees as part of the new benefit mix.

For Island County residents, the measures are designed to sustain municipal services by improving recruitment and retention for critical public works, parks, and marina operations. The modest added cost for the extra half percent reflects a budgetary choice to maintain staff stability amid higher living costs. The mayor has been authorized to sign the Teamsters agreement, and the new pay rates and policy changes will go into effect Jan. 1, 2026.