PORT ANGELES — The city intends to freeze pay for all employees in 2011 to help tackle a deficit that could be as high as $1.2 million, staff said at a town hall meeting on the Port Angeles budget Tuesday.
City Manager Kent Myers said staff salaries and benefits take up the largest chunk of expense in the city’s general fund, and therefore will be the focus of cuts.
“We realize we will not balance the budget without impacting” staff pay, he said.
The city is facing a projected deficit of between $1.1 million and $1.2 million next year.
Services may be cut
“We cannot continue to operate at the level of services we have now,” Myers said.
“We will, I think, have to look at reducing services.”
Whether the city’s approximately 240 employees will receive a cost-of-living increase depends upon negotiations this year with the five unions that represent almost all city staff.
Last year, all staff, including department heads and Myers, received a 2 percent cost of living increase.
A pay freeze would apply to senior staff as well, Myers said.
All together, he said, the city intends to chip off $1 million in costs associated with employee pay and benefits.
Costs for benefits will likely be reduced by the city requiring employees to pay a larger share, Myers said.
About 20 people attended the town hall meeting in the council chambers at City Hall.
Most asked questions regarding the budget process. A few, representing nonprofit groups that receive city funds, encouraged the city to not make any further cuts.
Pleas against funding cuts
The most impassioned plea came from Becca Korby, Healthy Families of Clallam County executive director.
“If there needs to be cuts, please do not cut where it is going to make the weak weaker, the sick sicker, and the smaller dead,” she said.
Healthy Families provides assistance to victims of domestic and sexual violence. The organization receives some funding from the city via contributions to United Way.
Representatives of the Arthur D. Feiro Marine Life Center and Port Angeles Fine Arts Center also spoke against further cuts to their organizations.
“You have cut us back last year, and indicated may cut us further this year,” Vicci Ruden, chairwoman of the Fine Arts Center board, said.
“But we do need that seed money from the city to keep our doors open.”
Recommendations for cuts from the audience included reducing the number of city-owned vehicles and the amount spent on consultants.
“If we can’t balance the budget, than we ought to stop paying for things that are not absolutely necessary,” said Port Angeles resident Paul Lamoureux.
Myers said the city will consider reducing the number of city vehicles.
Past cuts
In the last two years, the city has reduced costs by transferring the William Shore Memorial Pool to a taxing district, cut seasonal employee pay, reduced front counter hours at City Hall, delayed filling positions, limited overtime for staff, reduced travel and training costs, and reorganized several departments, Yvonne Ziomkowski, city finance director, said.
The city has also implemented a park sponsorship program.
She attributed the projected deficit to a continued decline in revenue and increased expenses.
The rising expenses are mainly due to unfunded mandates from the state and federal governments, rising costs for employee benefits and cost of living allowances, she said.
Declining sales tax revenue over the last three years has been a significant effect on the budget, Ziomkowski said.
“In 2011 it’s not looking much easier,” she said.
Public input
Myers said that the city is weighing public input heavily when determining how the budget will be balanced.
“It depends a lot on citizen input that we get,” he said.
That statement was seconded by several council members.
“We need your comments,” Deputy Mayor Don Perry said. “We want your comments. This is how we set our priorities.”
Input can be given at council meetings and by returning a survey distributed through utility bills this month and available on the city’s website, www.cityofpay.us.
The city will accept completed surveys until Aug. 16.
Ziomkowski said about 600 surveys have been returned.
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Reporter Tom Callis can be reached at 360-417-3532 or at tom.callis@peninsuladailynews.com.
