Public hearing on BI’s 2026 mid-biennium budget to be held Nov. 12

Published 1:30 am Wednesday, October 1, 2025

The Bainbridge Island City Council unanimously approved an ordinance at its Sept. 23 meeting, which will set a public hearing to be held Nov. 12, relating to the 2026 mid-biennium budget update.

DeWayne Pitts, City finance director, provided the council with an update on the overall budget and financial health. Last year, the city passed a biennial budget that covers 2025 and 2026. State law requires a mid-biannual review of the 2026 budget before modifications can be made, and also requires a public hearing. The 2025-2026 budget passed last fall was $144.6 million, roughly 1.5% less than the previous 2023-2024 budget, Pitts said.

The city’s overall staffing levels are proposed to remain the same as in 2025, per Pitts. Staff is recommending the filling of two and a half positions. These include one police officer, one accounting staff member and a half-time court judicial specialist.

Labor negotiations are currently underway with the International Association of Machinists and Aerospace Workers (IAM), which represents 80 out of 140 city employees.

“We anticipate that with keeping with our modest proposed changes to the budget, the city’s financial condition is expected to remain fiscally sustainable and strong for the future,” Pitts said.

Reserve general fund

City manager Blair King said the city has adopted a standing policy to commit at least three months’ operating costs to committed reserves.

“Our return on investment is higher than projected, which gave us a little bit of breathing room. We don’t expect that to happen through 2026. We are fairly pessimistic, and we are so pessimistic about the economy for 2026,” King said.

Pitts estimated the total reserve amount is around $7-8 million.

“If you meet the overall general fund reserve, it is 25% of ongoing revenues as a bare minimum, along with a million dollars in emergency reserve, and we continue to be well above that,” Pitts said.