City announces layoffs; projected deficit now around $650,000
By
Brandy Chandler-brandychandler@gmail.com
Three Hillsboro City employees have been informed their jobs will be eliminated, according to Hillsboro Mayor Dick Zink, to help offset a projected $730,000 deficit by the end of 2011. Zink said additional work needs to be done to balance the city's budget, and would not rule out proposing a tax increase.
Zink said that the three employees - a deputy tax commissioner, an IT audio/visual support technician with the city's public access station, and an administrative assistant/grant writer - were told Friday morning that the city is making layoffs and their jobs will be eliminated in 30 days.
"This is the second hardest day I've ever had," Zink said. He explained that the hardest day he ever had was laying off several employees in 2004. Zink said that unless the employees were union workers the city did not have to give them 30-days notice, but he felt it was the right thing to do.
Hillsboro Auditor Gary Lewis told The Highland County Press that the move will save the city approximately $35,000 to $37,000, after paying unemployment, through the end of 2010, and approximately $80,000 in 2011.
Zink also announced additional cuts, such as not purchasing road salt for the winter, closing of the dump site at Liberty Park, and most likely eliminating the fall leaf pickup, and eliminating the public access station services such as filming council meetings and parades. Lewis said that planned computer purchases will not take place, and he is looking at cutting the hours up to eight hours a week for employees in his office, including his own hours.
"I won't ask them to sacrifice without doing it myself," Lewis told said Friday.
In looking at these and some additional suggested cuts, Lewis said, "I am trying to work up this year to a $650,000 carryover into next year. (If that amount is reached) we'll survive."
Lewis said the cuts are going to have to be "for the long haul" until the economy turns around "and we get back where we need to be," which he said could be around three years.
"What hit the county a couple of years ago is hitting us now," Lewis said. "What the public needs to understand is that we're talking about fund accounting and the general fund is the one that is in trouble. By law I cannot take money out of other funds and put them into the general fund to sure it up. While the city may have $4 million-plus in the bank that amount is not available to the general fund, just a part of it is."
The Highland County Press had asked Zink June 24 if the city would be laying off employees, and he said he could not publicly confirm or deny that, and said Friday that he wanted to tell the employees first and now have them find out from other sources their jobs had been eliminated. During a special council meeting June 24 Zink requested an executive session with council to discuss personnel. Zink said that while he and safety and service director Ralph Holt did not need the city's permission to make layoffs, he wanted to inform council of their intent.
During a council finance committee meeting in May, Zink had said "Employees are on edge right now, because they don't know if they're going to have a job or not. As long as I'm here, they're going to have a job as long as there is any possible way to keep them working."
When asked Friday what had changed his mind, Zink said, "I didn't understand the bank account numbers. We use municipal accounting, and I thought that if you had X-number of dollars in a CD for a certain period of time it would be permitted for use. I have been told since that is not the case. It is figured in the financial statements."
Zink said the city has not had a tax increase since the late 1980s and brought up the city's failed 2005 3-year earnings tax levy, which was projected to bring in an estimated $1 million per year for a total of $3 million. The money was earmarked for various infrastructure projects, including repairs to the sewerage system and city streets. Approximately $900,000 was dedicated to a new safety building and another $500,000 was set aside for equipment purchases.
"We need to come up with some financial help from someplace," Zink said. "That's council's call. The city can't place a tax on without going to the voters."
Zink said that the decision to lay off the employees had "made me sick. Anytime you mess with a person's livelihood, it's not pleasant. Unless you're giving them a job, it is not pleasant. I feel like I've kind of let the people down. It makes me sick what we have to do."
While the remaining employees will have to keep the offices running with less people, Zink said there will be times when the city office and tax office will be opened to reduced hours, and close to catch up on paperwork.
Three Hillsboro City employees have been informed their jobs will be eliminated, according to Hillsboro Mayor Dick Zink, to help offset a projected $730,000 deficit by the end of 2011. Zink said additional work needs to be done to balance the city's budget, and would not rule out proposing a tax increase.
Zink said that the three employees - a deputy tax commissioner, an IT audio/visual support technician with the city's public access station, and an administrative assistant/grant writer - were told Friday morning that the city is making layoffs and their jobs will be eliminated in 30 days.
"This is the second hardest day I've ever had," Zink said. He explained that the hardest day he ever had was laying off several employees in 2004. Zink said that unless the employees were union workers the city did not have to give them 30-days notice, but he felt it was the right thing to do.
Hillsboro Auditor Gary Lewis told The Highland County Press that the move will save the city approximately $35,000 to $37,000, after paying unemployment, through the end of 2010, and approximately $80,000 in 2011.
Zink also announced additional cuts, such as not purchasing road salt for the winter, closing of the dump site at Liberty Park, and most likely eliminating the fall leaf pickup, and eliminating the public access station services such as filming council meetings and parades. Lewis said that planned computer purchases will not take place, and he is looking at cutting the hours for employees in his office up to eight hours a week.
"I won't ask them to sacrifice without doing it myself," Lewis said Friday.
In looking at these and some additional suggested cuts, Lewis said, "I am trying to work up this year to a $650,000 carryover into next year. (If that amount is reached) we'll survive."
Lewis said the cuts are going to have to be "for the long haul" until the economy turns around "and we get back where we need to be," which he said could be around three years.
"What hit the county a couple of years ago is hitting us now," Lewis said. "What the public needs to understand is that we're talking about fund accounting and the general fund is the one that is in trouble. By law I cannot take money out of other funds and put them into the general fund to sure it up. While the city may have $4 million-plus in the bank that amount is not available to the general fund, just a part of it is."
The Highland County Press had asked Zink June 24 if the city would be laying off employees, and he said he could not publicly confirm or deny that, and said Friday that he wanted to tell the employees first and not have them find out from other sources their jobs had been eliminated. During a special council meeting June 24 Zink requested an executive session with council to discuss personnel. Zink said that while he and safety and service director Ralph Holt did not need the city's permission to make layoffs, he wanted to inform council of their intent.
During a council finance committee meeting in May, Zink had said "Employees are on edge right now, because they don't know if they're going to have a job or not. As long as I'm here, they're going to have a job as long as there is any possible way to keep them working."
When asked Friday what had changed his mind, Zink said, "I didn't understand the bank account numbers. We use municipal accounting, and I thought that if you had X-number of dollars in a CD for a certain period of time it would be permitted for use. I have been told since that is not the case. It is figured in the financial statements."
Zink said the city has not had a tax increase since the late 1980s and brought up the city's failed 2005 proposed 3-year earnings tax levy, which was projected to bring in an estimated $1 million per year for a total of $3 million. The money was earmarked for various infrastructure projects, including repairs to the sewerage system and city streets. Approximately $900,000 was dedicated to a new safety building and another $500,000 was set aside for equipment purchases.
While Zink said that EMS billing should be able to cover the construction of the new fire station, when it comes to other expenses, "We need to come up with some financial help from someplace," Zink said. "That's council's call. The city can't place a tax on without going to the voters."
While Zink said that EMS billing should be able to cover the construction of the new fire station, when it comes to other expenses, "We need to come up with some financial help from someplace," Zink said. "That's council's call. The city can't place a tax on without going to the voters."
Zink said that the decision to lay off the employees had "made me sick. Anytime you mess with a person's livelihood, it's not pleasant. Unless you're giving them a job, it is not pleasant. I feel like I've kind of let the people down. It makes me sick what we have to do."
While the remaining employees will have to keep the offices running with less people, Zink said there will be times when the city office and tax office will be opened to reduced hours, and close early to catch up on paperwork.