City employees could face 5-percent pay cut

Local News

November 5, 2009

Official budget revision yet to be proposed

By Ronica Shannon The Richmond Register Thu Nov 05, 2009, 10:53 PM EST

The city’s budget deficit could drop from about $2.6 million to $855,000, if a working document revealed Thursday to the city commission becomes reality.

If adopted, the revision would cut the pay of city employees by 5 percent and eliminate longevity compensation and overtime hours (unless otherwise approved).

City Finance Director Mike Broyles and interim City Manager Jimmy Howard gave the commission a detailed presentation Thursday in front of a packed house comprised mostly of city employees.

Howard began by highlighting changes to the city budget’s revenue side.

Sub Zero Wolf was set to become the newest addition to the city’s industrial park, but the business is not yet in operation, he said.

Howard, then serving as the city’s industrial development director, said he began to recruit Sub Zero Wolf about two years ago. The state cabinet for economic development then said it would give the city $100,000 when the plant started hiring, as long as it began before June 30, 2010, Howard said.

“They haven’t started hiring people yet,” he said. “There’s no use to show you $100,000 that I don’t know we’re going to get.”

An extra $20,000 in revenue is recorded in the working document, reflecting the receipt of two state grants of $10,000 for the installation and/or repair of city sidewalks.

Broyles presented the expense side of the document, which shows at least a 5-percent decrease in spending in each city-operated department, along with the decrease in payroll based on a 5 percent pay decrease for all departments.

The salaries listed for each department are based on the current number of employees in that department, Broyles said.

Several overlapping line items in some departments were combined to make expense tracking easier and more efficient in the future, he said.

Howard and Broyles inherited the task of revising the city’s 2009-10 fiscal year budget after the October retirement of former city manager David Evans.

The budget’s revision was to be complete in late October, but it has taken until now, Howard said, to meet individually with each city department head and explore ways to increase revenue and decrease expenses.

It was earlier announced that the commission would have a first reading of a proposed revised budget at its next meeting at 6 p.m. Tuesday, Nov. 10.

“This is too important to rush it, and we didn’t rush it,” Howard said.

However, when it comes to the commission making its decision, he reminded everyone Thursday that only eight months remain in the fiscal year.

“We can’t find anymore revenue at this time,” Howard said.

Howard told commissioners that if they were not comfortable with what was being presented, then perhaps they should consider looking elsewhere for someone to offer a revision.

“Mike and I do not know of anything else to do at this time that will have an immediate impact on the financial health of the city of Richmond,” he said. “We’re not giving up. We’re doing our best, but we’re looking for direction.”

Mayor Connie Lawson suggested Howard and Broyles meet individually with each commissioner before the final budget is passed.

This would give the commissioners and mayor a chance to relay what they have heard from the general public, she said.

Lawson said this could potentially lead to “an even tighter budget.”

Commissioner Bill Strong suggested the elimination of longevity pay be postponed until after the holiday season, stating that many employees count on that money to help with holiday expenses.

Commissioner Robert Blythe requested documents (i.e. notes) from all department head meetings Howard and Broyles had conducted so that he could see if any of his suggestions would overlap measures already taken.

Employee evaluations, or the lack thereof, rather, were the main concern voiced by Commissioner Rita Smart.

She voiced dislike of a 5-percent across-the-board pay cut, stating pay cuts should be based on performance evaluations.

Howard responded by saying he was not in favor of the $1,000 across-the-board pay raise the commission gave all employees for the 2009-10 fiscal year.

Commissioner Mike Brewer said he still wanted the commission to be able to have a first reading of an amended budget at its Tuesday meeting.

Individual meetings with commissioners will begin immediately, but a date as to when a revised budget will be proposed to the commission has not been determined.

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

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