Letters to the Editor Opinion
Letter to the editor: PenMet’s risky financial planning
PenMet is pleading poverty in 2024. Its draft 2024 budget shows that without the additional $2.7 million in property tax levies the levy lid lift would provide just in 2024 (almost a 30% increase), PenMet would have to cut its cash outlays by $2.5 million. Let’s take a closer look at how PenMet plans to achieve this reduction, and let’s also remember that it’s a given that PenMet’s property tax levies in 2024 will be about the same or maybe even a bit higher than its 2023 property tax levies.
Layoffs
PenMet states it would have to lay off one Procurement Specialist, saving $106,000. PenMet would have to also lay off 2 Grounds Specialists. They don’t say how much this would save, but my guess is maybe $120,000. Three layoffs, none of which come in the executive departments. If PenMet’s 2024 property tax levies will be the same or higher in 2024, why are any layoffs necessary? Did PenMet expand its staff in anticipation of the levy lid lift being approved? If so, is this proper management? Layoffs drive up PenMet’s already substantial unemployment insurance rate which increases its unemployment taxes — paid with our tax dollars. To hire staff in the hope that thousands of voters will approve a levy lid lift seems to be a foolhardy management decision. In addition, PenMet’s Maintenance Staff is already woefully understaffed, and yet PenMet plans on laying off two more…seriously?
Maintenance supplies & outside contractor services
PenMet would be forced to reduce its purchase of maintenance supplies and its utilization of outside contractor services. If PenMet can afford these supplies and services this year, why can’t it afford the same supplies and outside services in 2024?
DeMolay park attendant
PenMet would reduce the DeMolay Sandspit Park Attendant from daily hours to weekend-only hours. This would create a small savings at best — and keep in mind this service is required only because PenMet terminated the cost and operationally far more effective Park Host Program in 2021.
Picnic tables, trash cans and benches
PenMet would have to reduce its purchase of picnic tables, trash cans, and benches. Looking to save $2.7 million …seriously?
Invasive weed control
PenMet would have to reduce its invasive weed control efforts. Again, seriously?
Reduction in community events
PenMet says it would have to reduce its community events. Is this threatened cut made solely to convince voters that the Levy Lid Lift is necessary? PenMet will have the same income in 2024 and please notice PenMet is making no cuts to the staffing that puts on community events. Same revenue and same staff…why the cut?
Increase event fees
PenMet would have to increase its fees for fee-based events. How does this save any money?
Reduce summer camps
PenMet would have to reduce its summer camps. Again, if PenMet’s income in 2024 will be the same as or higher than in 2023, why is this necessary? In addition, summer camps, according to PenMet’s 2023 financials, are a major financial success story so why shoot yourself in the foot by cutting back on them?
Capital projects
All the above only add up to about $700,000 towards the $2.5 million PenMet supposedly needs. Where is the balance of $1.8 million coming from? PenMet will defer or eliminate 5 capital projects listed below. PenMet has a long track record of listing Capital Improvement Projects in its budget and then not following through or deferring them. This is nothing new.
- Peninsula Gardens: $1 million
- Narrows Beach: $555,000
- Wollochet Estuary: $150,000
- McCormick Forest: $500,000
- Cedrona Bay Boat Launch: $150,000
These projects total $2.355 million, which exceeds the $1.8 million needed to reach the $2.5 million reduction by $555,000. Why is PenMet going over the amount needed? Is it possible PenMet has added these projects solely to show the impact of the failure of the Levy Lid Lift? And scheduling a $1 million for Peninsula Gardens in 2024? PenMet has owned that property for years.
Financial uncertainty: The bigger picture
Let’s also look at the bigger picture. PenMet expects the Community Recreation Center to open in October 2024. According to its financial proforma, PenMet is expecting the CRC to operate at a loss for at least the first three years. What if those projections are way off and the losses are far greater than anticipated? Is it good fiscal policy to add millions to the Capital Improvement Projects when so much uncertainty will be created when the CRC opens? What about possible cost overruns on the CRC? Maybe a more conservative approach would be a far more prudent management decision until the actual financial results of the CRC’s operations become known? Don’t forget that PenMet is also facing two potential lawsuits of undetermined, but possibly substantial amounts in possible settlement or judgment and in legal fees.
It’s time for responsible fiscal management and for an end to threats of needless layoffs and unnecessary cuts in successful programs.
Craig McLaughlin
Fox Island
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