The Port of Port Townsend focused on lowering expenses in the first draft of its 2019 operational budget, which was presented at the Port Commissioners’ meeting on Sept. 26.

The Port has already begun condensing administrative staff in order to reduce expenses, eliminating the Port communications and marketing coordinator position.

Jim Pivarnik, who began as interim executive director of the Port on Sept. 19, presented the draft budget to port commissioners along with Abigail Berg, director of finance, and announced the change in administration.

“Abigail and I have worked for the last week on this, to try to come up with a budget that … goes along with the goals we have set for ourselves in building the net operating income, and really condensing some job functions,” Pivarnik said, adding that at their current estimations, the projected 2019 operational expenses will be less than in 2017. 

“We’re proposing operating expenses of $4.971 million. In 2017, they were $5.079 million,” Pivarnik said. “I think we’re pretty comfortable with getting our expenses down. It took some major things … we’ve eliminated an administrative position. But we also looked at all our consultant contracts and other contracts that we’re looking at. We’re looking at utilities. We’re looking at wherever we can save money.” 

Kimberly Matej, who held the position of communications and marketing coordinator and was hired alongside previous Port executive director Sam Gibboney, will no longer work at the Port as of Sept. 30. 

“We had a nice discussion. She is going on good terms,” Pivarnik said during the Port Commissioners’ meeting. “This was her decision to leave. We didn’t fire her. This position was going to go away, and we offered her a position that we could work her into the organization. Being the professional that she is, she opted to leave.”

Pivarnik added that as the new director, any marketing he hopes to do will be hired out to a consultant, which he explained would be less expensive than having a full-time staff member.

“That’s one of the ways we got our numbers down,” Pivarnik said. “It’s a short-term fix, but it’s one of the ways we were able to reduce our expenses.”

The Port also hopes to increase revenue by leasing out Port buildings that had previously been empty. They are increasing moorage rates to the Consumer Price Index plus 1 percent, but will not increase yard rates until next September because of an agreement made with the Port Townsend Marine Trade Association. 

“We are increasing rates for all moorage, CPI plus one,” Pivarnik said. “We bring in about $2.7 million in marine operations … about $27,000 of that is the 1 percent we’re talking about.”

Bertram Levy, a moorage tenant at the Port and longtime advocate for the moorage tenants union, raised concerns over moorage rates during the public comment section of the meeting.

“Port Townsend is, of course, the most expensive marina in Clallam, Jefferson and Kitsap counties, except for Eagle Harbor,” said Levy, who presented some studies he has done of rates in marinas, and the change in population at the Port since 2017. “The rates really affect the integrity of the maritime community.” 

In upcoming weeks, Pivarnik hopes to extrapolate the budget further to see where each part of the Port - from the yard, moorage, and the airport - needs to be cut back, or to increase income.

“I think we all need to see who’s making money and who is not. Where we need to move things, how we need to reallocate,” Pivarnik said. “I think some of Bertram’s comments are the right comments. How are we allocating resources?” 

While Pivarnik said the budget draft was looking positive, he reminded the commissioners that there are still a lot of upcoming projects that will take major funds, such as the Jefferson County International Airport runway rehabilitation project. 

“We have a lot of wood to chop this year, with the airport runway project. We certainly have to make advances in our stormwater system, and there is still the jetty that needs to be addressed, somehow,” Pivarnik said. “We’re going to make $4.79 million. Remember we have a $4.5 million runway somewhere in that number. But the good news is, we’re in the black.”