City sets this Friday as shutdown day
By Kathy McCarty
Staff Writer
PRESQUE ISLE — Those wishing to do business in city offices Friday will have to do so at another time, following city officials’ decision to implement a furlough day Aug. 30 as a cost-saving measure.
The announcement came late last week that a city-wide shutdown day would be effective Friday, Aug. 30.
City Manager Jim Bennett said the city has felt the impact of the state budget arguably greater than any other community in the state, “when considering 22 percent of our operating budget was covered by revenue sharing funds.”
In order to balance the budget, the City Council needed to cover $458,533 in shortfall created by the state. The amended city budget directs that approximately 11 percent of the $458,533 — or $50,366 — come from reduction in personnel expenses.
The first of the adjustments to be made will occur on Friday, Aug. 30, when all non-essential city personnel, including salaried employees (that includes the city manager and deputy city manager), will be required to take time off without pay. The shutdown day will resolve approximately $12,000 of the $50,366 needed.
“It is very disappointing to be in this situation because of decisions that were made in Augusta. The City Council and I are doing what we believe to be in the best interest of everyone for the long-term, including our residents, our businesses and all our employees,” said Bennett.
Friday was chosen because it falls in a five-paycheck month, with the hope that it will minimize the financial impact on employees. The day chosen also falls on Labor Day weekend, when many people are traveling, with the hope that this will minimize the impact on residents.
All non-essential city offices will be closed on Aug. 30. Appropriate notices have been placed.
Other changes were also made during August’s regular City Council meeting to help reduce expenses incurred by the city. Among those decisions were:
• Authorize the temporary reduction of contributions to ICMA-RC of all non-union employees hired after Feb. 14, 1996. Notwithstanding the current employee handbook, councilors voted effective June 23, 2013 until Dec. 31, 2013, for all employees hired after July 1, 1996 and covered by said agreement, the city will contribute 1 percent less of all wages earned than would have been authorized by the handbook in Section 12. The city manager is hereby directed to cause the same to occur;
• Authorized a change to the employee handbook, approving recommended changes as presented. Those changes included: for regular full-time employees, the city’s contributions for insurance would be 100 percent for employees, and dependent costs 90 percent for employees hired prior to Nov. 5, 1995; Eligible employees hired after that date but before Sept. 30, 2012 would receive 100 percent for employees and 50 percent for dependents; for employees hired after Sept. 30, 2012, the city’s contribution would be 80 percent for employees and 55 percent for dependents. The vote was 6-1, with Councilor Craig Green opposing;
• Councilors authorized the city manager to implement a one-time option for employees to sell accumulated vacation time, up to 80 hours. Further, only employees hired prior to Feb. 14, 1996 are subject to the change in health insurance contributions and have elected health insurance beyond single coverage are eligible; and
• Directed the city manager to implement a four-day work week with reduced employee hours to be implemented Sept. 30, 2013, where applicable. Further, the city manager will report back to the City Council with details prior to implementation for approval by City Council. Councilors also directed the city manager to develop a reduction in force plan to be implemented prior to Sept. 30, where applicable, and to further report back to the City Council on said plan prior to implementation for approval.
Bennett said this last item did two things. If the city is not able to resolve this with employees, it gives the city until Sept. 30 to continue discussion with the union. “We either have to reduce hours or eliminate a position. We have a 60-day window. We won’t implement anything without you being aware — that’s the reality. You don’t have to vote on this tonight,” Bennett said.
Councilors voted 6-1, with Green in opposition, to implementing a four-day work week as proposed.
