Tenants using Boat Haven will see varying rate increases in the coming year.

Commissioners for the Port of Port Townsend have started to round the rough edges of the port’s proposed 2023 budget as officials continue to tweak proposed moorage rates in next year’s spending plan.

A public hearing on the port’s draft budget — including the operating and capital budget, rates, property tax levy, and Industrial Development District tax levy — is set for Wednesday, Oct. 26.

Port-wide expenses from operations are budgeted to be $6.4 million in 2023, a 10 percent increase from the 2022 budget. Part of this increase stems from a 5 percent pay increase for port staff, effective Jan. 1, 2023.

At the same time, the budget reflects a revenue increase totaling more than $7.4 million, a 9 percent increase from 2022. The uptick in revenues includes $1.1 million in the general property tax levy for the port, a rise of 2.6 percent from 2022.

Port commissioners met earlier this month to talk about the draft budget.

One cause for concern that brought people to the Oct. 12 meeting was the possible end to the promised extension of a 3 percent moorage rate increase for permanent tenants through 2024.

Most other rates at the port would increase 5 percent for 2023.

However, the recent dramatic rise in inflation has of course also effected the port, reflected in its consumer price index (CPI).

“Due to the significant increase in the CPI in the last year (10.1 percent), the recommendation is that permanent moorage tenants also pay the 5 percent CPI increase as proposed with most other port rates for 2023,” Abigail Berg, the port’s director of finance and administration, and Eron Berg, the port’s executive director, wrote in their budget draft proposal.

During the review of the budget earlier this month, some made clear they were upset to see the 5 percent increase in moorage rates for permanent tenants.

“While an additional 2 percent rate increase will not impact every Jefferson County boat owner, it will impact many,” said Jeff Kelety.

“We’re not asking for a free ride,” added Bertram Levy. “I’m asking the commission to codify a predicable annual 3 percent increase every year so that we can predictably budget.”

“A lot of the tenants are stuck having to do one thing: Cut expenses,” Levy continued. “In this example with the proposed 2 percent increase, the only way to cut expenses is by reducing your contributions to local people by reducing the use of local services and by shopping at discount chains rather than shopping locally.”

In response, Berg stressed port commissioners have the final say on the rates that will be adopted.

“With this talk of moorage tenants and permanent rate, that’s entirely up to the commission’s discretion,” Berg said.

He was also keenly aware that the stable rate increase would have been easier to manage if it had been in place longer.

“If we’d been doing 3 percent for the last 10 years, I would not be recommending something other than 3 percent,” he said. “It just works better when there’s been some 3’s in years when actual has been 1 or 0 or -2, even. It’s tough to only have it going one direction,” Berg said.

Port Commissioner Carol Hasse was moved by what she’d heard in public comments.

“I would like for us to stay at 3 percent,” Hasse said. “The reason being for me is that I feel like it’s important that we honor our word.”

Of course, for Hasse, it was also personal.

“At Boat Haven we have people that are struggling, and I’m one of them, to be able to afford a boat year after year,” she said.

While Port Commissioner Pete Hanke was in agreement, he had concerns.

“I agree with Carol,” Hanke said. “It’s important for us to keep our word … Just a word of caution, we may do 3 percent this year; it may be worse in the years to come.”

Port Commissioner Pam Petranek was also sympathetic.

“Every uptick, whether it’s a 1 percent uptick, it’s going to be a conversation for the dinner table, going, ‘Can we really do this?’” Petranek said.

“I advocate for 3 percent,” she added.

With the commissioners unanimous in their desire to maintain the 3 percent increase for at least the coming year, port staff was tasked to update the third draft of the 2023 budget.

Port commissioners will again discuss the budget at their meeting at 5:30 p.m. Wednesday, Oct. 26 in the Point Hudson Pavilion Building.