30 Richmond City Employees May Face Termination
RICHMOND – The city of Richmond may need to lay off 30 or more city employees as part of a package to deal with the current budget shortfall.
On Tuesday night at a meeting of the Richmond City Commission, City Manager Jimmy Howard submitted his recommendations for reconciling the $2.4 million budget deficit, a process which he described as very difficult.
After working with Richmond Finance Director Mike Broyles, Howard said a limited amount of new revenue is available, prompting the need to cut costs by implementing the following measures:
• A five-percent across-the-board salary cut for all city employees;
• The lay off or termination of 30 current city employees;
• Stopping longevity pay;
• Recommending that the Richmond City Utilities raise water rates to generate $300,000 in new revenue;
• Implement a line item enabling the city to borrow $500,000 from itself to fill the remainder of the budget shortfall.
Howard said if the city implemented the measures he recommended, Richmond could get through fiscal year 2009-2010 without having to borrow money.
Howard further noted that he had few other options in light of the fact that commission members made it clear that they don’t want to raise local taxes. He further noted that while the city would face a tough road at the beginning of the next fiscal year, at least it could conclude the current year with a balanced budget as required by state statute.
“It won’t be rosy,” Howard said. “On July 1, we’ll be right back counting our pennies.”
During the meeting, commissioners were vocal in their resolve to fix the budget crisis, though when it came time to implement measures Howard specifically recommended, the votes simply weren’t there.
During the meeting, the commission rejected an order to revoke a longevity bonus to employees based on the length of city service.
Commissioners Bill Strong, Mike Brewer and Mayor Connie Lawson expressed reservations about taking back a benefit that city employees had come to expect, especially right before the holidays.
Robert Blythe, meanwhile, put forth a measure to table the order until more information could be gathered, but the motion to table the item was defeated in a 3-2 vote.
At one point in the discussion, Commissioner Rita Smart asked just how much money the city would have to expend on longevity bonuses, prompting Mike Broyles to say the gross figure would be approximately $85,000.
Smart responded that in light of the deficit, and based on the fact that the employees would be receiving the money based on no measurable goals, she couldn’t support continuing longevity bonuses.
When the item came up for a re-vote after the motion to table, Bill Strong, Mike Brewer, Robert Blythe and Connie Lawson voted to keep longevity pay. Rita Smart cast the lone dissenting vote.
As a result of the vote, Howard stated he might have to cut an additional three employees from the city payroll –raising the projected total of layoffs from 30 to 33.
Department heads will be consulted in the days ahead with their recommendations concerning a reduction in city staff, Howard said.
Later in the evening when another cost saving measure came up for discussion, there was again hesitation on the part of some members of the commission.
During commission comments, Smart suggested taking two measures to help solve the budget deficit: raising rates on city telephone land lines from he current 87 cents, and beginning measures to merge 911 dispatch with Berea and Madison County.
Smart noted that the city takes in $90,000 in revenue for its 911 dispatch operation but spends an excess of $500,000.
“We’ve put this off for a number of years, and it’s built up and built up,” Smart said. “You can vote me out, but I say bite the bullet and do what’s best for the next generation,” Smart said.
Some advocates of consolidated dispatch estimate the city could save $300,000 or more annually on operations costs by merging with Berea and Madison County.
But Blythe argued against acting too hastily on the 911 dispatch question, however, noting that he’d always expressed a willingness to vote on the issue when he felt he was satisfied that the commissioners had all the necessary information.
“Until such a time is that I have the information in front of me, I can’t make that decision,” Blythe said.
The last time Blythe called for information to be gathered about the 911 dispatch operation was prior to the 2008 general election. No report has been forthcoming since.
On a related topic, the commission heard the first reading of an ordinance amending the city’s personnel and policy procedures, enabling the city greater ease in laying off employees due to lack of work of lack of funds. The item will come up again for a vote on Nov. 24.
On Tuesday night at a meeting of the Richmond City Commission, City Manager Jimmy Howard submitted his recommendations for reconciling the $2.4 million budget deficit, a process which he described as very difficult.
After working with Richmond Finance Director Mike Broyles, Howard said a limited amount of new revenue is available, prompting the need to cut costs by implementing the following measures:
• A five-percent across-the-board salary cut for all city employees;
• The lay off or termination of 30 current city employees;
• Stopping longevity pay;
• Recommending that the Richmond City Utilities raise water rates to generate $300,000 in new revenue;
• Implement a line item enabling the city to borrow $500,000 from itself to fill the remainder of the budget shortfall.
Howard said if the city implemented the measures he recommended, Richmond could get through fiscal year 2009-2010 without having to borrow money.
Howard further noted that he had few other options in light of the fact that commission members made it clear that they don’t want to raise local taxes. He further noted that while the city would face a tough road at the beginning of the next fiscal year, at least it could conclude the current year with a balanced budget as required by state statute.
“It won’t be rosy,” Howard said. “On July 1, we’ll be right back counting our pennies.”
During the meeting, commissioners were vocal in their resolve to fix the budget crisis, though when it came time to implement measures Howard specifically recommended, the votes simply weren’t there.
During the meeting, the commission rejected an order to revoke a longevity bonus to employees based on the length of city service.
Commissioners Bill Strong, Mike Brewer and Mayor Connie Lawson expressed reservations about taking back a benefit that city employees had come to expect, especially right before the holidays.
Robert Blythe, meanwhile, put forth a measure to table the order until more information could be gathered, but the motion to table the item was defeated in a 3-2 vote.
At one point in the discussion, Commissioner Rita Smart asked just how much money the city would have to expend on longevity bonuses, prompting Mike Broyles to say the gross figure would be approximately $85,000.
Smart responded that in light of the deficit, and based on the fact that the employees would be receiving the money based on no measurable goals, she couldn’t support continuing longevity bonuses.
When the item came up for a re-vote after the motion to table, Bill Strong, Mike Brewer, Robert Blythe and Connie Lawson voted to keep longevity pay. Rita Smart cast the lone dissenting vote.
As a result of the vote, Howard stated he might have to cut an additional three employees from the city payroll –raising the projected total of layoffs from 30 to 33.
Department heads will be consulted in the days ahead with their recommendations concerning a reduction in city staff, Howard said.
Later in the evening when another cost saving measure came up for discussion, there was again hesitation on the part of some members of the commission.
During commission comments, Smart suggested taking two measures to help solve the budget deficit: raising rates on city telephone land lines from he current 87 cents, and beginning measures to merge 911 dispatch with Berea and Madison County.
Smart noted that the city takes in $90,000 in revenue for its 911 dispatch operation but spends an excess of $500,000.
“We’ve put this off for a number of years, and it’s built up and built up,” Smart said. “You can vote me out, but I say bite the bullet and do what’s best for the next generation,” Smart said.
Some advocates of consolidated dispatch estimate the city could save $300,000 or more annually on operations costs by merging with Berea and Madison County.
But Blythe argued against acting too hastily on the 911 dispatch question, however, noting that he’d always expressed a willingness to vote on the issue when he felt he was satisfied that the commissioners had all the necessary information.
“Until such a time is that I have the information in front of me, I can’t make that decision,” Blythe said.
The last time Blythe called for information to be gathered about the 911 dispatch operation was prior to the 2008 general election. No report has been forthcoming since.
On a related topic, the commission heard the first reading of an ordinance amending the city’s personnel and policy procedures, enabling the city greater ease in laying off employees due to lack of work of lack of funds. The item will come up again for a vote on Nov. 24.