Port Orchard city staff presented mid‑biennial amendments to the 2025–26 budget on Oct. 21 that would increase total appropriations to cover cleanup items, new capital expenditures and personnel requests. Finance presenter Noah said cleanup items total roughly $500,000 and new expenditure requests are about $6.5 million; the package uses roughly $3 million in one‑time revenue derived largely from building permit overperformance and interest earnings.

The largest single capital item in the amendment is a proposed reconstruction of Bay Street, estimated at about $11 million. Noah said the city has a $1 million state award that has not yet been obligated and a $3 million federal appropriation that is outstanding in the federal budget process; because federal funds may not be obligated for months the city proposes to use local one‑time funds to keep the project moving and "claw back" those local dollars if state or federal grants later materialize. "Without this investment, the community center and any other redevelopment downtown can't move forward," Noah said.

Council members discussed the risk that starting construction before federal reimbursement could make the city ineligible for later reimbursement. Noah advised the city could not reliably be reimbursed once work begins and said staff intend to proceed cautiously while pursuing federal and state obligations.

The amendment would also fund personnel requests across departments, including a proposed communications specialist, additional permit center staff to improve plan review turnaround, an inspector supervisor for public works inspections, and limited additions in parks and streets. Noah told the council that any position paid from the general fund would carry a three‑year salary and benefits set‑aside so the city would not be forced to lay off new hires if revenue slowed later.

Officials also reviewed capital equipment requests (vehicles, push cameras for sewer laterals, a pressure‑wash trailer) and recommended adding modest funding for downtown beautification and site furnishings tied to visitor goals. After a public hearing on the amendment drew no testimony, the council indicated general support and directed staff to bring an ordinance for adoption at the next meeting.

Speakers quoted are from the meeting transcript. The ordinance and final appropriation will be subject to subsequent council action.