DuPont budget battle looms

As the Legislature in Olympia wrestles with a 2 billion dollar deficit and prepares for a November 28 special session, the DuPont City Council is wrestling with decisions on how to make long-term payments on the Civic Center, and whether it’s prudent to hire a community development director at a time when most cities and the state are cutting staff.

But it’s the potential increase in salaries of all city staff that caught the attention of several city council members and is catching flack from residents.

Included in the proposed 2012 budget are step and longevity pay increases that equals $113,345. In a year when Washington State K-12 teachers saw their salaries cut 1.9 percent, some City of DuPont employees could receive an 11 percent increase in their salary. While K-12 teachers will still receive their ‘step’ increase based on their level of education, some state workers didn’t fare as well.  In the current Washington state budget, public employees’ salaries and compensation were reduced by 3 percent. Furloughs have become a common practice. And forget about step increases, they don’t exist.

According to City of DuPont Finance Director Sandi Hines, step increases are included for those city employees that are eligible and due a step increase per the bargaining unit contracts and personnel policies. 

“When an employee steps through the salary range, it is not negotiated with each union each year. Instead, it is an established and agreed upon system that remains in place until such a time when either side (City or union) may request it to become an item of bargaining during contract negotiations,” said Hines in an email to South Puget Sound News.

The proposed 2012 DuPont budget does not include Cost of Living Adjustments (COLA’s) from any of the city’s three bargaining units.

South Puget Sound News attended the November 15 council workshop when the staff step increases, longevity pay and the new community development director position were discussed. City staff members attend these meetings, and sit quietly and listen to all the comments from council members about the hours they work, and what their salary should be. Words were chosen carefully. It was obvious that some council members were caught between a rock and a hard place with the numbers presented before them.

“I can’t support the salary assigned to the Community Development Director’s position. It’s just too high,” said Councilman Larry Wilcox.

“I never made this much working for the Federal Government. There’s going to be some outcry from the public about these budgeted numbers,” said Councilman Jim Hills.

And so far there has been.

“It seems that during these times of austerity it’s wrong to pay increases regardless of them being step increases or longevity, or both,” said DuPont resident Tom Colegrove.

“Every family and business owner I know is doing everything they can survive the recession, and that includes cutting costs, reducing staff and forgoing pay raises for now. We’re all in this together. But when we see city employees getting a pay increase, at a time when citizens are losing jobs or taking pay cuts to save K-12 Education from being gutted, I have to wonder what is going through their minds.  It’s not about whether city staff deserves the pay increase based on job performance or hours on the job. We are all working long hours to survive,” said DuPont resident and business owner Susan Cowperthwaite.

The community development director position has not been filled since 2008. The position for 2012 is budgeted with a salary and benefits of $124,446, which is roughly the same amount as step and longevity increases for existing staff. During the November 15 workshop meeting, Councilwoman Penny Coffey offered her support for the position.

“We have to keep DuPont front and center with the developers. This individual can hopefully take care of the sign code and sign land use decisions. DuPont has lost many businesses to the Lacey area. We as a city have to work with developers, and we have to drop the ‘take it or leave it’ attitude,” she said.

Councilman Roger Westman was leery about adding the position.

“I don’t see taxpayers in this town wanting to pay a city staff member to promote or market someone else’s property and development project,” he said.

Councilmembers are also keeping an eye on Gov. Chris Gregoire’s state budget proposal that would cut liquor excise tax funds to local jurisdictions.  DuPont was projecting $42,234 in liquor excise tax for 2012.

DuPont's Fire and Police facilities are part of DuPont's Civic Center campus.

Meanwhile, council still has no outlined approach on how to deal with the city’s long-term debt on the Civic Center Facilities, which has a payment of approximately $1.27 million due each year until 2039.

During the November 8 council meeting, council members made the decision to take approximately $483,000 from the Emergency Replacement & Repair (ER&R) fund to fill the gap on the remaining amount owed for the December Civic Center payment.

“We need to have a conversation with the community now instead of kicking the can down the road,” said Councilman and Mayor-elect Michael Grayum.

Councilman Westman suggested that making hard cuts now might work in the city’s favor if down the road if the city asks for more money to meet the debt obligation on the Civic Center.

“The people need this council to have the willingness and desire to cut expenses in 2012. We need to be fiscally responsible. Trim as much as we possibly can, and put our house in order so we can make the mortgage payments in years to come. Then and only then can we go to the public and ask for a property tax increase or general bond issue to help pay for the Civic Center over the next two decades,” he said.

The DuPont City Council is expected to adopt the 2012 general and EMS property tax levies at the November 22 council meeting. Another budget workshop is scheduled for November 29 at 6 p.m.  Council is expected to adopt its 2012 budget at the December 13 council meeting.