01/12/2009 Minutes - Laserfiche WebLink

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The following has occurred in the City of North Olmsted: unemployment rate of 6% as of November, 2008; lower-than-expected income tax collections in 2008 over 2007; 168 properties in foreclosure; reduced f revenues from building permit fees; projecting a 40% decline in building permit revenues; impact of the year-old national recession; closings, layoffs, and/or retrenchment by major employers; national unemployment rates are at a 30 -year high; the State of Ohio is facing a $7 billion budget shortfall. Combined, these are creating dark economic times for the City of North Olmsted. Within the general fund budget for the City of North Olmsted, 85% of expenses are personnel wages and benefits. Within that, the Department of Public Safety compromises 67% of the general fluid budget. The only way the City can save any money is through attrition, retirements, demotions or layoffs. The City began a hiring freeze in midsummer. Several positions have not been filled in the Safety Department to save money: a Corrections Officer, a Firefighter, a Police Sergeant, a Building Inspector, and a Building Secretary. Additionally, the City has worked with Council to re -program some existing non - general fund dollars to accept general fund expenses. There is a program called STOP; the police officers work overtime issuing speeding tickets on 1-480. The expense for their gasoline was coming out of the general fund. This past summer, the Administration asked Council to allow those STOP finds to be used to pay for the gasoline, car expenses. The Administration also asked to expand this category called HOTEL/MOTEL. The City charges 3% tax for people using hotels and this amount is designated for the safety forces. The Administration asked that those be expanded not for personnel cost but for computer and radio costs and other equipment costs within Police and Fire. That freed up the general find and allowed the City to save some more money. The Administration was getting very close to that million dollars and then came September when the bottom fell out of the economy. Rather than just attrition, the Safety Director needed to look at the entire Safety Department and started with non -bargaining because they did not need to go to the table to negotiate. When examining the criteria, the question is if the position is in the Charter. The position of Safety Director, the Police and Fire Chief are specifically stated in the City Charter; therefore, nothing could be done with those positions. Secondly, wondered if there is a certification requirement for a position. Within the Sate of Ohio, the Building Commissioner must be State Certified and the City cannot collect building permit fees, conduct State ordered building inspections unless the City has a State Certified Building Commissioner; nothing could be done with this position. The third measure was to look at the comparables within the surrounding communities. There are no other Safety Directors within the six we -share communities. There is one other Assistant Fire Chief and that is in the City of Westlake. The Safety Director had to look at what the ramifications if the position were unfilled. In this particular instance, if the Assistant Fire Chief's position was unfilled, the person would go back to the category of firefighter and stay employed. The Administration also looked at the School Crossing Guards. The decision was made to eliminate all the School Crossing Guards by the end of the semester which is effective on January 22, 2009. Overall, between the attrition of all of these positions that were unfilled, the efficiencies the City reached within certain general fund categories and the layoffs, the City's desired budget objective was reached. Unfortunately, with the bottom falling out of the economy, that wasn't the case. On the 29"' of November, the Safety Director issued five lay-off letters to bargaining unit personnel within the Police Department; on December IS` the Safety Director issued five lay-off letters to bargaining unit personnel within the Fire Department and later on that month two Building Inspectors were also laid off for a total of twelve employees within the Safety Department to meet the 2009 general find budget requirement. The Safety Director has a fiduciary responsibility to the citizens of North Olmsted and it is with great regret to lay off personnel, but because of the budget impact to the general field, it was necessary to lay off the positions of Firefighters, Police Officers, Building Inspectors and the Crossing Guards in order to balance the The role of the Assistant Fire Chief is an assistant to the Fire Chief and works with administrative matters such as payroll, ordering supplies, stepping in when the Chief is on vacation. This position also has a secondary role which is working with the Fire Prevention Bureau, conducting inspections, overseeing the