(07/29/09) - Akron Mayor Don Plusquellic
today announced additional steps in the continuing effort to balance the operating budget
of the City of Akron in 2009. The City must cut expenses to fill a projected budget
deficit of approximately $12 million before year’s end, due to decreasing revenue
from income taxes, property taxes, investments, and state tax-sharing formulas that are
affecting every city in Ohio.
In a letter to all city employees today, the mayor thanked workers for their
cooperation, and singled-out the city’s 70 managers for their efforts to cut costs
and still provide necessary services. Plusquellic expressed appreciation to employees in
the public service departments, who have experienced disproportionate reductions in
personnel in recent years (with as many as 1,000 positions vacated through attrition since
the 1980's.)
Akron has gone from a high of 3,100 employees to its present force of 2,150 today.
Akron’s safety forces - police and fire - have not experienced any reduction in the
number of active duty officers on the streets.
The mayor announced a series of initiatives to reduce additional costs between now and
the end of the year.
1. The mayor announced an initial round of layoffs. Twenty-one employees
received notices today in the following classifications:Recreation (seasonal) - 4
Engineering Bureau co-ops (permanent part-time) - 11
Public Utilities co-ops (permanent part-time) - 5
Taxation, Secretary (temporary) - 1
Future layoffs will be announced in stages, by classification, as provided for in the
Civil Service rules.
2. The mayor encouraged eligible workers to review the details of the
Voluntary Separation Plan approved by Akron City Council Monday, and which last week was
approved by the city’s five bargaining units. The incentive, offered to all permanent
employees as of January 4, 2009 includes a cash retirement incentive, and mirrors the plan
announced by Summit County government last month. Substantial savings will be realized
this year if several hundred workers accept a voluntary separation effective no later than
October 1, calculated as follows:
A lump sum payment equal to 30% of the first $50,000 of base salary plus an
additional 5% of that portion of the employee’s base salary that exceeds $50,000. For
example, an employee making $70,000 per year would receive $15,000 + $1,000, or a $16,000
lump sum payable at retirement, in addition to other benefits that retiring employees are
entitled to.
(Akron employees have been invited to information sessions to be conducted next week at
Morley Health Center by the Ohio Public Employees Retirement System and the Ohio Police
& Firefighters Plan for those who will want to accept the city’s offer to
retire.)
3. The mayor responded to managers and workers who have asked how they could
help to avoid layoffs in the workforce by issuing an Executive Order that will give all
full time permanent employees the option of taking time-off without pay. The Voluntary
Furlough Plan allows City employees the opportunity to take unpaid time off work while
retaining benefits. Seasonal, temporary, and part-time employees are not eligible to
participate. The plan will be implemented immediately for non-bargaining employees, and
will be extended to others as bargaining units add their approval to the proposal.
Some provisions of the Plan include the following:
- Managers will work with employees to accommodate their requests;
- It is the intent of the City to avoid the need for overtime work by another employee to
fill the job of a furloughed employee
- The City always retains the right to address emergency situations;
- Furlough days may be combined with paid leave or vacation days, so if a holiday falls
during the furlough, the employee will be paid for the holiday, and the holiday will not
be counted as a voluntary furlough day.
- Employees may take furlough days before or after a holiday and be paid for the holiday.
4. Plusquellic indicated to employees that the city will be working with its unions
to examine other types of cost savings already implemented in other Ohio cities, including
the imposition of mandatory furlough days. The Mayor is weighing a proposal to close-down
city services, except emergency services, on several pre-announced days late in the year.
5. City employees were also notified of a new Travel Policy that will eliminate outside
training and travel by city employees, except for the most essential purposes, or where
costs are being paid by an organization other than the city.
6. The mayor announced the cancellation of the September issue of Akron CITY magazine.
Its content will be merged with the end-of-year issue, which is delivered with the annual
city calendar. Delivery of the combined September/January issue and calendar will be moved
up to November.
7. Plusquellic also announced that he has advised the Mayor of Akron’s sister city
of Chemnitz, Germany, that Akron cannot support the Chriskindl Market which the city has
sponsored since 2004. Instead, private donors will be asked to help underwrite the cost of
the outdoor ice rink at Lock 3 this winter, and if sufficient interest can be garnered, a
new winter market featuring local groups promoting many ethnic cultures will be developed
in its place.
The City will also forego the spectacular lighting ceremony it has sponsored on
the day after Thanksgiving. The "Welcome Santa" parade on the Saturday of the
weekend will take place, but without the city’s support of the high-flying Macy-style
balloons this year.
8. Police Chief Craig Gilbride will work with special events planners to reduce the
amount of overtime for police officers who provide manpower for special events. Where
circumstances do not require the presence of an off-duty officer, alternate personnel will
be utilized. In the past, the city has used school crossing guards, explorer scouts,
University of Akron police cadets, Downtown Safety Ambassadors and volunteers to man
barricades during the many walks, runs, and events sponsored by the City.
9. For the next six months, the City is substantially reducing its program of
advertising in publications that are intended to reach business site selectors.
Previously, the City announced the following cutbacks to balance its budget in
2009:
- Elimination of a second leaf pick-up this Fall.
- Limiting overtime to emergency situations and as required by union contracts only. This
has saved over $1.1 million compared to this same period in 2008.
- The City eliminated leave purchases for 2009, generating a savings of about $1,000,000.
- Since August, 2002, the mayor has personally reviewed each and every personnel
requisition that managers submit.
- The mayor recommended, and City Council approved elimination of the City Picnic holiday
in 2009. Three unions - AFSCME, CSPA, and Nurses agreed to this change.
- No eligible manager received a merit increase in pay this year.
- The mayor waived his 2009 wage increase in December. Every member of his cabinet
volunteered to forgo a wage increase effective March 1. On July 20, Akron City Council
also waived future salary increases.
- The City closed the West Side Depot to better deploy staff over the summer months.
- Expressway mowing was reduced.
- Custodial contracts at community centers and hours of the swimming pools were cut back.
- Entertainment costs at Lock 3 and city parks were reduced, and the city has aggressively
pursued businesses and foundations to increase their underwriting support for all
entertainment-related events.
- Akron raised lease rates on its Watershed property to generate additional revenue.
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