Published: November 11, 2009 08:20 am      

Layoffs, loan among ways to balance budget

Interim City Manager Jimmy Howard offered the Richmond city commissioners five suggestions Tuesday night that he said could eliminate the city’s $2.6 million deficit.

Only one proposal – to save $105,000 by eliminating city employee’s once-a-year longevity pay bonus – was put to a vote Tuesday, and it was defeated 4-1.

Howard’s five proposals included:

• A 5-percent pay cut for all city employees

• Layoff approximately 30 full-time employees

• Eliminate longevity pay

• Raise utility water rates

• Borrow $500,000.

“If we do these things, we’ll come close to balancing this budget,” Howard said.

Tuesday night’s agenda included an order to eliminate the longevity bonus this year, but when it came up, Commissioner Robert Blythe move to table the issue, saying the action should be delay so the city could search for other ways to save money. City employees were depending on the annual bonus – based on their time of service – that traditionally has been paid to them just before Thanksgiving.

Blythe’s motion was defeated, however, with only Blythe and Mayor Connie Lawson voting in favor. The other three commissioners, including Bill Strong who seconded Blythe’s motion, voted against it. Commissioners Mike Brewer and Rita Smart said they wanted to immediately address the issue.

When the order was voted on as presented, it was defeated 4-1, with Smart voted in favor.

Brewer said he did not want employees to take the brunt of the city’s unfavorable financial status.

Smart said she realized her vote would not be well received by city employees, but with the city’s facing a large deficit, they would have to forego the longevity bonus this year.

Brewer disagreed.

“I don’t want to pile upon city employees the problems we’ve (the commission) have created,” he said. “They anticipated this longevity pay, and I’m not for taking it.”

Strong said the commission would inevitably have to make tough decisions to help decrease the deficit, but he was reluctant to deny city employees their anticipated longevity pay at the start of the holiday season.

Strong said he did not want the commission to take “ the quick action of penalizing city employees at Christmas time.”

Lawson reminded commissioners, “We have to be very careful with what we’re doing with people’s lives. If you give somebody something and take it back, I have a problem with that.”

If the commission decides to lay off employees, it likely will be done under new procedures established by an ordinance given its first reading Tuesday.

If adopted on second reading, the ordinance would eliminate thee stipulation that:: “Temporary, seasonal and probationary employees shall be laid off before the employees occupying established positions.”

No vote was taken on the first reading of an ordinance.

If layoffs are implemented, the current policy would have a severe, negative impact on some city departments, Howard said.

In the case of the finance director’s office, the current would eliminate two positions in his already understaffed office, Finance Director Mike Broyles said.

If layoffs do occur, however, the new policy stipulates they would be given two weeks notice.”

There was no disagreement among commissioners when it came time to vote on an order that would eliminate overtime pay in a week during which a city employee has taken vacation or sick leave.

In an October interview Broyles said, “If you took vacation Monday through Friday and were called in to work on Saturday, you would be paid eight hours overtime. The new policy allows overtime pay only after an employee has actually worked 40 hours.

In other business, the commission:

• Adopted an order authorizing the finance director or deputy finance director to act in place of the city manager in the case of Howard’s absence.

• Agreed to extend a 2007 agreement with the Kentucky Transportation Cabinet as a part of the “Richmond Pedestrian and Bicycle Trail and Brick Sidewalk Restoration Project” so that the city could receive $75,000 in state funds for to repair or install sidewalks.

• Approved Chief Larry Brock’s recommendation to promote three Richmond police officers from patrolmen to senior patrol after three years of service.

• Appointed Sue Chenault to the Richmond Tourism and Convention Commission, Mary Lillian Abney to the Planning and Zoning Commission, Eugene Strange, Catherine Eaves and Rodney Richardson to the Citizens Police Advisory Board.

• Acknowledged the resignation of Cynthia Oaks as a data entry clerk for the Richmond Police Department.

• Lawson signed a proclamation declaring Saturday as World Diabetes Day in Richmond.

Diabetes educator Paula Hollan told the commission of several local activities that would be part of the worldwide observance.

The Irvinton House in Irvine-McDowell Park will be illuminated in blue lights, along with several other landmarks around the globe. At Saturday’s Eastern Kentucky University Colonel’s football game, 100 blue flags will be displayed, each representing 50 Madison County residents who live with diabetes.

The next meeting of the Richmond City Commission is scheduled for noon, Tuesday, Nov. 24 at city hall.

Ronica Shannon can be reached at rshannon@richmondregister.com or 624-6608.