City balances budget by cutting, shifting positions

In a special session, City Council adopted the budget ordinance unanimously. The total budget came in at $31.2 million, with $11,693,326 million worth of expenses in the general fund.

City income taxes go into the general fund, which is used to fund the city’s payroll. Mayor Paul Wiehl told council that 80 percent of the city's expenses in the general fund come from personnel costs, including 29.83 percent for the Police Department and 20.99 percent for the Fire Department.

In the city's general fund, police payroll costs $3,234,200, while fire payroll costs $2,260,800. Total personnel costs for the city come in at $9,380,162, while supplies and services cost a total of $2,069,426. The remainder of general-fund expenses come from transfers and refunds at $251,600.

In late November, city officials revealed they would eliminate four positions either currently vacant or soon to be vacant from the city rolls to save $200,000. These positions include a patrol officer, a fireman, a streets department worker and a member of the city's custodial staff.

The move will change the number of authorized patrol officers from 19 to 18, the number for firefighters from 16 to 15, and street maintenance technician from 11 to 10.

At-large council member Jim Sands, who co-chairs the city’s finance and personnel committee, explained the budget ordinance Monday night.

“We pay closest attention to (the general fund),” he said. “Many of the other funds are what we call proprietary funds, where they actually earn some money.”

He said that the office of city Auditor Kathy Hecht has confirmed that the city has a balanced budget.

Third Ward member Nancy Bain, who is the other co-chair of the finance and personnel committee, spoke to council about the positions that were eliminated and shuffled.

“We were able to balance the budget because the mayor and the (city service-safety director) have been working very hard to adjust behavior patterns and save money,” she said. This is a reference to the city administration over the past year freezing most hiring and eliminating a majority of take-home vehicles for city employees.

“But (that has not been) enough at this point to save money,” she said. “So this year we have to start working on the negative part, which is not filling positions.”

The four positions that were eliminated, she explained, were already vacant or soon-to-be vacant; therefore nobody was laid off.

“It’s very sad to have to do this but there’s a gap between our expenses and our costs, and soon (saving money by not buying) all the paperclips in the world isn’t going to cut it,” she said. “There are some other things that may be done but we’re now in that arena of changes in personnel.”

She added that several custodial positions that work in areas paid for by proprietary funds will now be paid out of those funds instead of the general fund.

“We have moved one custodial position in funding only into the parking garage,” she said. “And then two are being paid currently out of the community center fund. It’s fitting and proper that they do that. They work out of there. They do clean up there. So the community center fund can afford to pay them.”

She said that this is why the budget is now balanced “at least until the first of June or so, or the first of April.”

City officials were already aware that the budget probably will have to be altered next summer after the state comes out with its biennial budget that kicks in July 1. With Ohio facing a projected $8 billion budget shortfall, further cuts to higher education funding in the state appear imminent. This would reduce funds coming into city coffers through payroll taxes at Ohio University.

In its budget planning, OU has made room for a possible furlough contingency plan. OU Provost Pam Benoit recently stated that a recently enacted employee furlough process doesn't mean furloughs are planned. "The furlough process has been written simply to put the mechanism in place, not in anticipation of implementing the furlough in this fiscal year," she said.

"It's not going to be pretty," Bain predicted previously about the effects of state budget cuts.