PORT ANGELES — Port of Port Angeles commissioners approved a status-quo 2015 spending plan Tuesday by two split votes.
Commissioners also doubled the taxing district’s allocation to the Clallam County Economic Development Council to $50,000, boosting the organization’s chances of more than doubling its staff in 2015, EDC Executive Director Bill Greenwood said.
Expenditures also include $4.5 million for cleanup of the site formerly occupied by Peninsula Plywood.
Commissioners voted 2-1 to increase property taxes by 1 percent and by the same margin approved a $9.16 million budget for 2015 compared with the $9.15 million 2014 spending plan they approved a year ago.
Commissioner Colleen McAleer cast the lone dissenting vote both times.
She cited a tough economic climate in voting against the tax levy increase, and pointed to a $253,397 deficit after depreciation for 2015 in voting against next year’s spending plan.
The budget shows an operating surplus of $1.65 million before depreciation.
The 1 percent property tax increase totals $14,008 in additional revenue for the port.
Added to estimated new construction and changes in state-assessed properties and refunds and the existing levy, the total levy generates $1.4 million in revenue to the port.
In 2015, the tax increase will cost the owners of a $190,000 home in Port Angeles an estimated 38 cents more for the year, a $150,000 home in Forks an estimated 30 cents more and owners of a $240,000 home in Sequim an estimated 48 cents more.
The amount is a matter of cents on a yearly basis for property owners because the $14,008 increase is spread among all the county’s property owners.
The levy rate for the port will be 20.2 cents per $1,000 in 2015 compared 20.0 cents per $1,000 in 2014.
Port commissioners did not impose the 1 percent property tax increase for 2014 but did in 2008, 2011 and 2013.
Property taxes pay for the port’s general obligation debt, a new $65,000 Small Communities Program for rural economic development and the port capital projects fund.
In voting for the measure, Commissioner John Calhoun said that even a 1 percent increase does not keep up with the consumer price index increases over more than 1 percent.
“Even if we pass the 1 percent, it still erodes your revenue capacity,” he said.
McAleer, noting Clallam Count is considered economically “distressed” by the state and federal governments, said the port has nearly $20 million in reserves that could be tapped.
“Symbolically and philosophically, I am fiscally conservative, so I am opposed to increasing it by 1 percent,” she said.
Commission President Jim Hallett said consistently not taking the increase puts the port in a bind of potentially not having funds for needed infrastructure.
“It’s never a good time to ask for money, but on the other hand, the public expects us to be good stewards of that,” he said.
The increase to the EDC was accomplished by cutting consulting services for strategic planning from $50,000 to $25,000.
“Of course we feel good and we feel grateful for it,” Greenwood said in a later interview, adding he still needs to hear from Clallam County and the cities of Port Angeles, Sequim and Forks for word on whether they will increase funding to the EDC.
“We still need more funding to make sure we can hire good people,” Greenwood said.
“We are just gonna wait and see how it adds up.”
The budget also includes funding for a temporary process improvement analyst who would work under a one-year contract that commissioners would consider renewing for 2016.
The contract would pay $103,300 in salary and benefits for 2015.
A permanent position of a purchasing contracts grant specialist also will begin in April and cost $65,617 in salary and benefits.
Salaries and wages will increase by 1.7 percent for non-represented staff and will expand by drawing from a merit increase pool of $40,000.
Represented staff pay will increase by the 1.5 percent consumer price index and will be adjusted for step increases.
The long-standing chip tower along Port Angeles Harbor off Marine Drive also will be removed for $100,000.
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Senior Staff Writer Paul Gottlieb can be reached at 360-452-2345, ext. 5060, or at pgottlieb@peninsuladailynews.com.
