It was a scheduled as a finance committee meeting, but with all city council members present Wednesday night, council chairman and finance committee chairman Mike Lutz went around the room and asked each council member what plans they have for reducing the city’s expenditures and what new ideas they have for increasing revenues.

Right now the city is looking at a 2012 deficit of anywhere from $175,000 to a half million dollars.

At the end of the meeting, Lutz said he was frustrated that, while old ideas were discussed again, council offered few new ideas.

 

Dave Frazer

Dave Frazer said he was in favor of the proposal to ask employees to pay more for their insurance and begin paying a portion of their retirement pickup. Lutz said that issue was tabled at a recent meeting and asked if Frazer wanted to see it taken off the table and offered for approval again. Frazer said he did and had no other ideas.

 

Bob Cleary

Bob Cleary said he wanted to discuss his ideas in executive session because they pertain to employees. His request drew loud boos from the audience.

But Mayor Rich Blankenship objected to the executive session, pointing out many of those who attended were city employees, some of whom have been given a possible layoff notice. Blankenship said they deserved to hear what Cleary had to say.

“Call them in and look (at them) face to face,” Blankenship said. He urged council to “get a doggone budget in place” so he can run the city. His comments drew loud applause.

Cleary said he wanted to discuss salaries but no proposals were made in the open meeting and there was not a closed session.

 

Philip Heald

Philip Heald said he is not in favor of cutting employees but said he hopes employees are willing to shoulder more of the cost of their retirement pickup and health benefits.

Lutz pointed out to Heald that a proposal to ask non-union employees to begin paying 10 percent of their health insurance premium and 7.5 percent of their retirement pickup affects only those employees until it is approved by each of the city’s three unions.

“I think, if the unions know how we’re struggling, they need to recognize that,” Heald said.

Heald added he is against raising any fees right now.

 

Beth Rist

Beth Rist said she is not in favor of cutting police officers or firefighters.

“I know what it is like to lose your job and lose everything,” Rist said. Rist said she hoped the unions would be willing to work with the city in regards to their benefits.

Rist said she would have new ideas at Thursday’s council meeting.

 

Kevin Waldo

Kevin Waldo said it was imperative the unions recognize the dire financial condition of the city and be willing to work with the budget.

“They need to accept reduction in benefits,” Waldo said.

He took exception to comments by Sandra Shonborn, union representative for American Federation of State, County and Municipal Employees (AFSCME) Ohio Council 8, who spoke earlier in the meeting about the importance of city employees.

Waldo said he very much appreciates the job city employees performed and he is not in favor of cutting employees. But, if the city’s revenues are dwindling, the choices are to either cut people and services or raise fees. He pointed out there has not been any large-scale addition to the city’s tax base in the form of new jobs and the state has reduced the amount it gives the city, thus leading in part to the city’s dwindling revenues.

“I realize this is a terrible situation,” Waldo said. “But without new business, where else do we have to look?”

Waldo said he thought health insurance costs for all city employees should be incrementally raised from the five percent it is now to eventually 20 percent, with the city paying the remaining 80 percent.

Waldo said he wanted to see incremental increase as well in the retirement pickup so that eventually all employees pay 10 percent of their pickup with the city paying 14 percent.

But he said there was no way to “get the ship righted” long enough without new revenues such an increase in the municipal fee.

 

Aaron Bollinger

Aaron Bollinger said he realized some of the changes he is in favor of are not popular, but with the financial shape the city is in, tough choices have to be made.

Bollinger reiterated his proposal that the benefits specialist position be eliminated along with police dispatch. Bollinger said he had nothing personal against Katrina Keith, who is the city’s benefit specialist, but cuts must be made to help balance the budget. Bollinger said he viewed police dispatch as a duplication of services because the sheriff’s office and 911 provide dispatch services for other emergency agencies.

“I’m just trying to do the right thing,” Bollinger said.

Blankenship said he has spoken to Lawrence County Commission President Les Boggs and talks are ongoing.

Bollinger said he is in favor of an $8 municipal fee.

 

More thoughts

Finance Director Kristen Martin pointed out that even if the city asks employees to pay more for benefits and with only an $8 municipal fee, the city will still not have a sustainable carryover.

She handed out a budget draft that factors in the recent payroll tax reciprocity repeal; the hike in the service worker fee, the five percent hike in employee health insurance contribution and 7.5 percent pension pickup and a 50 percent cut to supplies and travel expenses. It also factors in the diminished revenues from the state.

Factoring in even the recent changes made, the city will still have $272,000 less to operate with in 2012 than it did in 2011.

Martin said the budget even factored in the elimination of the benefits specialist position and getting rid of all but one dispatcher (who would function as a police department clerk) and the city would still end the year with a carryover of $56,814 — if there are no unforeseen costs in the coming year.

Flood wall superintendent Mike Pemberton said the U.S. Army Corps of Engineers will meet with him soon to discuss changes in the floodwall system.

“There goes that $56,000,” Lutz said.

Martin said the city is facing the same increase in costs for things such as gasoline and supplies as anyone else and these costs are largely beyond the city’s control.

Waldo said he would not favor eliminating the benefits specialist position or the economic development office.

Lutz said even if the city agreed to eliminate police dispatch it would be months before the city could actually accomplish this, meaning the cost savings with such a plan is diminished for 2012.

Waldo and Lutz argued the city needs to increase the municipal fee. Lutz drew applause from the audience when he said he would be willing to entertain a $2 increase.Waldo drew applause when he said he thought the fee should be double the $8 it is now.

“The amount we pay for services we get is ridiculously cheap compared to our neighbors,” Lutz agreed.

Bollinger asked Martin how much of a budget cut is realized if all employees take the benefits change. Martin said it would amount to a four percent cut.

Lutz said after the meeting he is frustrated that he asked each council member to come to the Wednesday meeting with new idea to help balance the budget and not one new ideas was offered and some council people offered no ideas at all.

The full council will meet at 6 p.m. today.