BI adds $418K in spending to 2-year-budget

The Bainbridge Island City Council decided to spend $418,000 more but cut $42,000 in its biennium 2025-26 budget Oct. 22.

The council looked at seven items that were mentioned at its previous meeting.

It decided to spend $200,000 from the Transportation Benefit District for small transportation projects; $140,000 from the council’s contingency fund for economic development planning; $60,000 for upgrades to Suyematsu Farms from the contingency fund; and $18,000 for another City Connects communication. Cuts included $32,000 from the council’s contingency fund and $10,000 to the Kitsap Economic Development Association in 2026. An idea to cut $20,000 in equipment purchases was dropped.

A public hearing on the changes was set for Nov. 12.

For the transportation projects, Mayor Joe Deets said, “Constituents asked for this.”

Councilmember Jon Quitslund added: “I wish it could be more. $100,000 doesn’t go very far.”

Some councilmembers said they hope more than traffic calming can be accomplished.

“It’s supposed to be innovative—temporary or permanent,” Councilmember Brenda Fantroy-Johnson said.

Councilmember Leslie Schneider added: “Let’s not limit the way we look at this. The money is available if we see an opportunity.”

The longest debate was about economic development because the city has not been involved in that before and has no experience or direction.

The council will spend $140,000 to come up with a strategic plan. A motion to spend $60,000 on a hotel assessment failed, although Councilmember Clarence Moriwaki said, “That should be a part of it.”

In starting the discussion, city manager Blair King came up with some ideas: such as a Wayfinding Sign Program that would cost $600,000 in lodging tax money or a retail recruitment or hotel assessment that would cost $60,000 from the general fund.

He said the council needs to decide if the goal of economic development is to create jobs or add to the city’s tax base. The sign project was asked for by the chamber and would direct people to important parts of town.

But even King said, “This feels a little rushed unless you have some targets in mind.”

The majority of council felt some type of strategy is needed before money is spent anywhere.

Moriwaki said the wayfinder signs idea should have to compete against other projects.

Quitslund said the Lodging Tax Advisory Committee has a lot of projects to look at. He called on the cultural groups ito work on an economic development plan, including Seattle investments and Kitsap County involvement. “There’s a lot of potential we shouldn’t be ducking at this time.”

Speaking of time, Deets wondered if now was the time to even discuss economic development. “This doesn’t feel right to me. It’s very piecemeal.”

But Councilmember Kirsten Hytopoulos said budget time is when such things need to be discussed. “We’re not going to push it down the road again. What kind of economy do we want to grow here?”

She said because BI doesn’t have big box stores, “We are so reliant on small businesses.” She favored a strategic analysis because a seasonal economy is not sustainable.

Deputy mayor Ashley Mathews said the council did ask the Planning Commission to determine how hotels fit into the city’s future. Schneider said a hotel assessment is “past due for historical and revenue reasons.”

But while Hytopoulos said, “We certainly need hotels,” she wasn’t ready to spend money on an assessment until an overall strategy is developed.

Mathews mentioned that she had met with Schneider and talked about the need for the city to assist underserved communities to get started in business.

Also, the council decided to cut 8% out of its contingency fund budget because every other department in the city was taking an 8% cut to balance the budget. Deets said they need to show the discipline other departments have. Hytopoulos said the council hasn’t been spending money in the contingency fund anyway. And Moriwaki said leadership should set the example for staff by taking the same cut, too.

As for cutting back money to KEDA, Deets said he thought the council had agreed to double their contribution for one year, but that it was to return to the normal $10,000 after that. Moriwaki said KEDA has done little to help BI so a reductions is appropriate, even calling their work “very shoddy.”

There are three City Connects communications that were going to be cut back to two to save money. But Deets said it’s money well-spent, and he actually thinks there should be more. Schneider likes it because the city can explain its side of issues. Hytopoulos said it’s still effective because people are inundated with electronic media.

Mathews was against it, saying the city should “look at another way to reach people instead of spending on a medium that nobody reads anymore.” She compared it to “snail mail” where a whole segment of society would practically use it “as toilet paper.”

The idea to cut purchasing equipment died when King said it would need to be bought at some time and would cost more in the future. Moriwaki added electric equipment is being purchased for environmental reasons.