While the Whitefish Police Department union has agreed to a limited contract opening to negotiate a minimum pay increase of 3.3 percent, the Whitefish Fire Department union declined to open its contract this year.

Last year both the police and fire unions agreed to forego cost-of-living adjustments to avoid proposed layoffs. No non-union employees got raises.

"Both [unions] felt they gave up a lot last year," City Manager Chuck Stearns told the council during a work session last week, noting that the police union gave up a 6.2 percent pay increase while the fire union agreed to forego a 4.2 percent increase.

Those sacrifices played into this year's budget, which calls for a 3.3 pay increase for non-union city workers and similar increases for union employees. It includes a 1.3 percent cost-of-living adjustment and a 2 percent pay matrix step increase.

Whitefish historically has given non-union employees the same cost-of-living adjustment set forth in union contracts.

The fire union is in the final year of its three-year contract, and union officials maintain the city is able to balance its budget this year with the proposed raise built into it.

The Whitefish Police Protection Association offered a limited opening with a floor pay increase of 3.3 percent. The association has agreed to delay a second 2 percent step increase that is due to them until 2014.

Not all council members are on board with the pay increases.

Council member Turner Askew asked why the city was inclined to give raises "when people in Whitefish are out of work."

Stearns said the 1.3 percent cost-of-living adjustment will be eaten up by higher health insurance premiums and noted that with numerous layoffs over the last couple of years, there's a bigger workload on fewer employees.

"The morale was a little down from prior years," Stearns said. "Lack of money can be a demotivator."

Police Chief Bill Dial reiterated what union president Brandon Thornberg had said earlier, that city employees are an asset to the community.

"This isn't gonna run if you don't have good people," Dial said.

Stearns said that as private-sector wages increased during the high-growth years eight to 10 years ago, the city may not have kept pace with pay increases.

Council member Phil Mitchell said that even though the city "is still scraping by" financially, he favors the 3.3 percent pay increase across the board out of fairness.

"Because the fire [union] chose not to open their contract they get 3.3 percent, so I have a hard time not giving others 3.3 percent," Mitchell said.

"I don't think we're out of hot water yet," Mitchell continued. "We'll know in 90 to 120 days if the national economy falls on its face."

Pay raises were a point of discussion at the July 5 council meeting, too, when council member Chris Hyatt moved to freeze any pay raises for city employees after learning the fire union wouldn't open its contract to negotiations.

"I see city staff that's not part of a union, then we have another group that bargains and they get $500 signing bonuses," Hyatt said at the council meeting. "I have a hard time with that."

Hyatt later rescinded the motion after Stearns pointed out that imposing a pay freeze for the fire department would be a breach of contract and likely would be a problem for the police union, too, even though its contract is being negotiated.

The Public Works Department's union contract also is being negotiated, and while those employees' pay is still negotiable, it's expected to be in line with the other 3.3 percent raises.

The council will vote on the final budget Sept. 6 following a public hearing.

After last year's general fund suffered a $9.1 million reduction, this year Whitefish is poised to slightly increase its general fund from $36.4 million to $38.1 million. Some of the increase is from incorporating the library into the city budget; some is for a 27th payroll period next year and some is for capital expenditure increases.

Features editor Lynnette Hintze may be reached at 758-4421 or by email at lhintze@dailyinterlake.com.