The U.S. economy seems to be struggling and all of us in Kitsap County aren’t immune to the economic downturn. Unbelievable fuel prices are affecting all of us. Who would have thought we would be paying almost $5 a gallon for gas?

The housing crisis has also hit the county. The inventory of unsold homes is increasing, sales are down, prices are static or declining and there are an increasing number of foreclosures. Unemployment in the county mirrors Washington state’s numbers and is at a recent historical high. Clearly everyone is affected by and suffering from the economic downturn. The county is no exception.

The county worked hard to balance the budget for 2008 without eating into reserves – the first time in many years. Early this year, staff advised us that the Real Estate Excise Tax (a tax on property sales that we use for parks and other projects) receipts were coming in significantly below budget. That will impact future capital projects. In mid-June, the board of commissioners was told sales tax collections are also down. At this point, we could be facing as much as a $2 million shortfall this year. It is a big disappointment after working so hard last fall to balance the budget. In addition, we are looking at a further $2 million shortfall going into 2009. I wrote earlier that the county’s financial problems would continue and this is proof.

The board will take action now to protect a balanced budget for this year by making cuts and freezing positions. We plan to balance the budget for 2009 again without eating into reserves and without tax increases.

I wrote earlier about the Citizens Budget Committee that has been convened to advise the county and citizens on ways the county might respond to its long-term financial problems. That committee is working hard and you can find information about its members and activities at www.kitsapgov.com/boards/citizens_budget.htm. We will be surveying residents about their ratings of county services and sense of county priorities this summer as part of the committee’s work.

The county will look this year at the costs of serving Silverdale and some of the other unincorporated areas in the county versus the revenues they generate. This is important information for the citizens contemplating incorporation of the Silverdale area. It is also important for the county as we contemplate life after incorporation if Silverdale becomes a city. The results of these studies will help the Citizens Budget Committee and the county look at long-term options for county services.

Norwegian Point Park

In Hansville, Norwegian Point Park planning is moving ahead. At a community meeting June 18, residents reviewed a draft Master Plan for the park based on community input. The draft calls for daylighting Finn Creek through the middle of the park, picnic areas, bird-watching platforms, restoration of the deck and pier with a boat float and shore launching for kayaks and other small craft. The audience liked the plan, with a few revisions – enough that the County Parks Advisory Board attending the meeting voted to forward the passive-use elements of the plan to the commissioners. The county is in active negotiations to purchase the remaining corner parcel of the park and that should be complete shortly. The three flat-top buildings will be removed and the fate of the remaining buildings will be decided after further evaluation and community input.

Village Green

The Kingston Community Center Foundation and Village Green Stewardship Committee are moving ahead to raise funds to build a new community center at the Village Green, located on the site of the old county sewer treatment plant. There are also plans to have an affordable senior housing complex. This is a beautiful site. The community and county have worked for several years on this concept and fundraising is moving ahead. House Speaker Frank Chopp visited the site and liked the plan. Representatives from our two U.S. senators and Congressman Jay Inslee’s office are interested and helping to seek funds. The Board of County Commissioners recently approved a deal with Kitsap County Consolidated Housing Authority to seek funding and build 40 units of low-income senior housing at the site.

Ferry traffic

Thanks to Representative Christine Rolfes, the county and Kingston representatives are working with Washington State Department of Transportation staff to look at how to reduce the impact of summer and weekend ferry traffic on downtown Kingston. WSDOT has been extremely helpful and we are looking at some innovative solutions to the problem.

Future Festival

Finally, I want to remind you about the upcoming Great Peninsula Future Festival to be held Aug. 2-3 in Port Gamble. This will be the first countywide sustainability festival in Kitsap County. There will be great entertainment, food and crafts for all ages. But the basic purpose of the festival will be to help all of us learn ways to save money, strengthen our local economy and protect Puget Sound and Hood Canal by reducing energy use, buying local products and using “green” building materials and other products. I’ll write more about the festival next month, but I hope you will put it on your calendar and plan to be there. It promises to be a great event!

Contact Commissioner Steve Bauer at sbauer@co.kitsap.wa.us or (360) 337-7146.