Port Orchard finance committee reviews $9.5 million mid‑biennial budget amendment, highlights Bay Street funding and staffing requests

Port Orchard finance staff on Oct. 14 presented a proposed mid‑biennial budget amendment that would increase budgeted revenues and expenditures by $9.5 million and advance several capital projects, staffing requests and accounting “clean‑up” items ahead of council review.

The proposal calls for using one‑time revenue and fund balances to cover new operating and capital needs while preserving reserve set‑asides. Mayor Rob Constant described the largest planned expenditure as fully funding the Bay Street reconstruction project, saying, “The largest expenditure in this proposed budget is to fully fund the Bay Street reconstruction project with our local dollars with the exception of $2,000,000 in KRCC funding.”

Why it matters: the amendment affects multiple funds, shifts impact‑fee proceeds into near‑term construction work and carries implications for reserve policies and staffing costs. Finance Director Noah Crocker told the committee the packet includes cleanup items — already authorized contracts and timing adjustments — plus new requests from department directors.

Crocker opened the meeting by noting modest sales‑tax performance and stronger REIT collections, and flagged a proposed capture of $300,000 of sales tax overperformance to apply to the 2025 budget amendment. He told the committee the amendment reflects updated information from Kitsap County on the maximum property‑tax levy the city can set for 2026 and that revenue estimates used to set the levy lag actual receipts by roughly 60 days.

The package would increase both revenues and expenditures by $9.5 million. Major capital items include: an $11 million…