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Kitsap Transit warns ferry fuel reserves may be strained; public commenter criticizes 2026 budget
Summary
Executive staff told the board fuel costs above budgeted assumptions could exhaust ferry-side reserves this year and may require using transit-side funds; staff also reported FIFA-related costs of about $900,983 with roughly $330,000 from Kitsap Transit after state, federal and county contributions; a public commenter criticized the agency's 2026 budget.
Kitsap Transit staff warned the board on June 2 that higher-than-expected fuel prices could deplete ferry reserves this year and that the agency may seek permission to use transit-side funds to cover ferry overages.
Director Claussen said the transit (bus) side has about $2,500,000 in reserves for fuel and the ferry side about $1,200,000. "We budgeted for fuel to be on average $4 a gallon for the year," Claussen said, but current prices are roughly $5 a gallon, and if trends continue the agency may "burn through the reserve funding for the ferry side of the ledger this year." He told the board staff might ask the board to allow using transit funds to cover ferry expenses because ferry reserves are newer and smaller.
Board members raised concerns about whether such a transfer would conflict with voter expectations or the ballot language that created the ferry funding pot; Claussen said ferry-dedicated revenue can only be used for ferries and that the bus-side revenues have broader flexibility, so transfers from buses to ferries are administratively possible but should be considered carefully.
Staff also updated FIFA-related local costs, estimating total expenditures around $900,983. Stephanie Lilly, service capital development director, said the agency had received $60,000 from the county for signage, $200,000 from federal sources, and $315,000 from the state—leaving roughly $330,000 to be covered by Kitsap Transit.
Public comment: Pete Brady of Bainbridge Island criticized the 2026 budget as unsustainable, citing the agency’s published numbers and urging a review of service levels and fleet size. Brady told the board he found the budget’s expenses and revenue numbers mismatched and suggested the agency might need to consider divestment options under state law.
Next steps: Staff will monitor fuel prices and reserves and return to the board if transfers or budget amendments are needed; staff will incorporate asset-replacement needs into the 2027 capital budget as earlier discussed elsewhere in the meeting.
