PORT ANGELES — Port commissioners approved a tentative 2 percent pay raise for port employees during a preliminary look at the 2012 port budget Monday.
The increase, reflecting the consumer price index, will be built into the port’s 2012 budget, which is estimated to be more than $2 million in the black because of dramatically increased log exports.
“Employee salaries are not paid from taxes,” Commissioner George Schoenfeldt said. “That money is earned.”
Port payroll is covered by profits from the log yard, business leases and other sources of non-tax income, he said during a meeting Monday of the commissioners.
“The rise and fall of our salaries is based on the fortunes of our customers, not taxpayers,” added Commissioner Jim McEntire.
But Commissioner John Calhoun questioned port employees getting any increase when Olympic Medical Center, Port Angeles city and Clallam County employees might face layoffs or compensation freezes because of tight budgets.
“While there are cuts elsewhere, is it fair?” Calhoun asked.
In 2009, port employees received a 2.8 percent cost-of-living increase at a time when city and county employees were given a 4.9 percent raise.
The port’s employees did not get an increase in 2010, and only a 0.7 percent increase in 2011, said Bill James, director of finance.
Schoenfeldt and McEntire initially said they supported 3.3 percent increases but reduced their recommendation to 2 percent.
The port has enjoyed excellent finances this year, and employees who have suffered over the last three years should at least be given a cost of living increase to hold even with inflation, they said.
Schoenfeldt and McEntire voted to recommend the 2 percent increase, while Calhoun voted against it.
“This is not a reward, just [consumer price index],” Schoenfeldt said.
Jim Hallett, a candidate to succeed Schoenfeldt in the fall election, attended Monday’s meeting and spoke in favor of higher cost-of-living increases. Schoenfeldt is not seeking re-election and Hallett is the only candidate for the seat.
Hallett asked the commissioners to reconsider their recommendation.
Port employees deserve the 3.3 percent increase, he said.
The port expects to add at least one position to support the log yard’s maintenance crew to help keep the port’s equipment humming, said Jeff Robb, executive director.
Increased log exports have been rough on the aging equipment, and an additional mechanic is needed , Robb said.
The commissioners also recommended a 2 percent increase in port leases, instead of the 3.3 percent rate increase recommended by staff.
“We have the budget to support it,” Calhoun said.
McEntire voted against the recommendation and advocated no consumer price index increase for port tenants.
“Given the economy, it would be unwise in the extreme” he said.
Monday’s recommendations were part of the first draft of the port’s budget and are subject to change.
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Reporter Arwyn Rice can be reached at 360-417-3535 or at arwyn.rice@peninsuladailyews.com.
