PORT ANGELES — City employees will not receive cost-of-living adjustments in 2010 if Port Angeles City Manager Kent Myers is successful in renegotiating union contracts.
Myers said Friday that the city’s finance director and human resources manager will meet with union representatives Tuesday to talk about renegotiating contracts to allow the 2 percent pay increases to be put on hold in 2010.
The city has contracts with five unions.
“Our goal is try to avoid layoffs and furloughing employees,” Myers said.
265 employees
The city employed 265 people at the beginning of the year, which made it the sixth largest employer in Port Angeles.
The proposed elimination of the pay increase, known as COLA, would apply to all employees.
“At this point, there would be no COLA adjustments for any employees next year,” Myers said.
Despite spending cuts implemented with this year’s budget, several revenue sources are expected to be below what the city projected.
General fund in red
The city’s general fund, its main operating account, is projected to be $150,000 in the red at the end of 2009.
Sales tax, which is traditionally the largest contributor to the general fund, was down 17 percent through June when compared with the same time period in 2008.
The city budgeted for a 10 percent drop this year.
So far this year, the city has cut the number of hours residents can pay utility bills at City Hall and reduced the pay for new seasonal hires to lower costs.
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Reporter Tom Callis can be reached at 360-417-3532 or at tom.callis@peninsuladailynews.com.
