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PTC delays decision on 23 job cutsFri, 01/16/2009 - 4:27pm
By: John Munford
Some 23 Peachtree City employees who were recommended to be "downsized" got a reprieve Thursday night ... at least for 30 days. Instead the City Council directed staff to survey all employees and ask if they would be willing to take a 25 percent pay cut beginning next week. The budget picture painted by city staff is so dire that even a 12.5 percent pay cut for all employees, along with a one day a month furlough wouldn't wipe out the projected $3.5 million shortfall for the 2010-2011 fiscal year budget. That move would save $1.94 million. One budget option is apparently off the table, at least according to Mayor Harold Logsdon: a property tax hike. The mayor said he didn't see any way the city could enact a tax hike with the uncertain economy. The Mayor added that he didn't want to delay a decision because of the costs to the city, and he assured the audience that all options to avoid such a drastic cut have been considered in recent weeks. "I don't think there's an option that hasn't been looked at by staff and council," Logsdon said. "We've agonized over this." Councilman Don Haddix said he worried just raising city taxes would force some people to lose their homes. Councilman Doug Sturbaum said he worried about having to drastically reduce city services, "and that's the last place we want to be," he said. All 23 positions proposed to be eliminated are on the city's landscaping and mowing crews with four at the city's recreation department and the remaining 19 at the public works department. In addition to mowing parks and right of way areas the crews also handle litter collection, emergency tree and roadkill removal and a variety of functions for special events hosted by the city. Eliminating the positions would save $840,000 but that could be increased as the city reduces its landscaping services. Among those proposed for elimination are the landscaping of subdivision entrances, as homeowners associations would be encouraged to handle it themselves. McMullen is proposing the affected employees would get six weeks severance pay and medical insurance with a COBRA option thereafter and access to the city's employee assistance program for three months. Also, the city will require any contractor assuming the services to consider any of the eliminated city employees for any new jobs created by that contract. Further possible cuts include eliminating a cost of living increase for all employees next year, which would save $700,000. The special events duties, along with emergency tree removal and other services including July 4 parade cleanup, would have to be addressed in future outsourcing contracts and in other ways, City Manager Bernie McMullen said. "There are a lot of things that are going to have to be worked out," McMullen said. "... We're not going to have this right the first time." Mayor Harold Logsdon warned that the more time goes by without action on the matter, the city's budget picture worsens. Logsdon said he will not let the city "go bankrupt on his watch," even though it's happening to other cities and counties across the country. Part of the problem is dwindling sales tax revenues due to the downturn in the economy, McMullen said. Also the city has not realized more than $600,000 in savings from personnel vacancies because attrition has not occurred as expected in large part due to the poor job market, McMullen added. McMullen said he is not proposing any cuts on public safety personnel in the fire or police department. "One of the things that makes Peachtree City different is the lower crime rate and service we get out of the fire department and police department," McMullen said. It was revealed that city staff have discussed implementing city-wide pay cuts of 20 percent for all personnel except police and fire because they are needed on duty. That pay cut would even affect McMullen, he said. Employee furloughs and many other options have been considered, officials said. Council members were incredibly averse to the idea of a property tax increase to cover the projected $3.5 million shortfall. Doing so would raise city residents tax bills by about $200 per home, officials said. Council heard over an hour of comments both from the public and also from employees who would be laid off. Randy Gaddo, director of the city's leisure services, said he four staffers whose jobs would be eliminated support the city's 45 special events. Gaddo was one of many voices asking for an opportunity for more public comment on the matter. Doing so, he said, "most importantly is in the best interest of the citizens, staff and the council." McMullen said the city looked at an early retirement program but decided against it in part because the city would have to replace a large number of employees because of the critical nature of those positions. login to post comments
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