Next Tuesday may be the first test of how serious the Oak Harbor City Council is about holding the line on general fund spending in the wake of a budget crisis.

Island County Economic Development Council requested its regular $1,000 annual donation from the city, plus an additional $7,000 as a “one-time contribution.” That’s an increase from last year’s so-called one-time contribution of $5,000.

“This increase reflects the hours necessary to accelerate marketing efforts on behalf of the City of Oak Harbor,” EDC President John LaFond wrote in a letter to the city council.

Mayor Patty Cohen said she is worried about the EDC’s growing dependence on Oak Harbor and Island County. Moreover, she is concerned about dipping into general fund reserves to spend money that wasn’t in the budget.

“If we are going to contribute at that level, I would very much like to see them develop a policy that directs the use and the drawdown of that fund,” she said.

Also, she suggests that the council create a benchmark to measure performance or accountability from the EDC.

In the midst of last month’s budget crisis, Cohen cautioned the council against spending general funds on projects that aren’t necessary, even though they may seem worthy.

City leaders took $200,000 from the general fund reserve, put off projects and cut positions in order to balance next year’s budget, but the city faces another budget crisis next year and into perpetuity unless there are meaningful cuts or a new revenue source is found.

City officials say the effect of voter-approved initiatives caught up with the city this year, limiting revenue increases far below increases in the cost of doing business.

The EDC also has budget problems. Last year, the EDC asked the city for $25,000 to make up for a shortfall when the state auditor told Island County officials that they can’t give the agency money from the rural county sales tax.

Instead, the council gave the EDC the regular $1,000 fee for membership, plus an additional $5,000 for outreach programs.

The EDC’s mission is to enhance and diversify the local economy. The agency provides a wide variety of services, including assistance to current and prospective businesses, education, training and “resource brokering.” The EDC puts on the popular Uniquely Whidbey Trade Fair and Home Show.

One of the EDC’s major successes recently was bringing regular air service back to the Oak Harbor Airport.

You can reach News-Times reporter Jessie Stensland at jstensland@whidbeynewstimes.com or call 675-6611.