Next year’s budget is on the fast track to approval.

After last week’s public hearing, the Bainbridge Island City Council scheduled a third reading for the 2015-2016 budget, bringing with it several city projects citizens can expect to see in the next year.

The council also unanimously approved a .89 percent increase in the property tax levy as part of the new budget.

The two-year financial plan considers projects and staffing adjustments that fall under a variety of funds including the city’s general fund as well as its street, civic improvement, affordable housing and building and development funds.

The proposed budget accounts for $42.5 million in expenditures for 2015, $18 million of which will be allocated to the general fund, which pays for basic services such as police, planning and administration.

The city will also see an almost $600,000 increase in personnel expenses.

About $2.6 million has been set aside for the executive department, an almost 10 percent increase from the 2014 budget.

Among other objectives, the executive staff plans to propose downtown parking options and a community broadcasting plan in the next two years.

With work left to be done on the tree and landscaping ordinance, shoreline monitoring program and the Bainbridge Island Comprehensive Plan update, the city’s planning department will receive a near 8 percent increase in next year’s budget.

The department will have $2.5 million budgeted for expenditures.

Public safety will have some of its own spending adjustments to make.

The Bainbridge Island Police Department has seen a more than 50 percent drop in violent crimes and more than 75 percent drop in juvenile arrests. But driving under the influence, case reports and dispatched calls have either increased or stayed the same in the past three years.

To better fit its needs in the coming year, the department will be restructuring its supervisory structure by eliminating its lieutenant positions and creating sergeant roles. It will also increase its capital budget to add an electric motorcycle to its fleet for traffic enforcement.

The changes call for a little more than $4 million for expenditures, a 3 percent increase from 2014.

Bainbridge’s public works department never lacks in projects. Over the course of 2015 and 2016, it plans to complete improvements to Wing Point Way, three phases of construction for the Sound-to-Olympics Trail and finish the design and permitting process for the Waterfront Park and public dock remodel.

Despite a significant to-do list, the workload equates to a $15.7 million budget — a 14.6 percent decrease from the 2014 budget.

On the other hand, city council is expecting an almost 14 percent increase for its portion of the budget at $115,900.

The allocation covers increased funds for travel, training, retreats and strategic planning.

Regardless of how funds are divided to each department, personnel costs are the single largest expense category in the city’s operating budget.

Officials note that health care costs are a primary driver in employee expenses, but also report that increases in health care costs are rising more slowly than in previous years.

In the 2007-08 budget, for example, health care costs rose 15 to 18 percent. Next year, those costs are expected to increase by only 5 percent.

Financial Director Ellen Schroer told the council last week that the city will have to address the increase in expenses at some point down the road.

“We’ve seen some increases with sales tax, property tax and rate revenue as well,” Schroer explained.

“But it is a concern certainly that the increases year after year do not continually completely cover the increases to the personnel expenses.”

Schroer explained that it’s not a problem this year, but it may become an issue by 2020.

“I’m comfortable with Ellen’s comment that this isn’t something we’re putting off,” agreed Councilman Val Tollefson.

“It’s something that we’ve forecasted as best we can.”

Along with salary increases for eligible city employees and cost of living adjustments for all employees, City Manager Doug Schulze said the city has been approved for two additional full-time employees within the public works department.

One part-time utility billing position will also be added.

The .89 percent increase to next year’s property tax levy will yield an extra $61,000 in property taxes.

At the current levy rate, this year’s construction projects will add $53,882 in new tax revenues, which will bring the total levy for 2015 to $6.9 million.

Bainbridge’s total assessed property value is $5.7 billion.

The council voted to schedule a third reading on the budget for Nov. 25.