No layoffs in New Philadelphia: Officials come up with plan to address budget shortfall
NEW PHILADELPHIA ‒ Mayor Joel Day said he and Finance Committee Chairman Steve Rippeth have come up with a plan to address New Philadelphia's projected $380,000 shortfall in the 2024 general fund budget without laying off employees.
Day told council on Monday that he and Rippeth had met on Sunday to discuss the budget. They came up with a list of revisions to general fund appropriations that he said the Finance Committee should consider.
"We believe that the revisions would result in a balanced permanent appropriations budget for 2024," he said. "Staff reductions are not on the list."
He added that he and Rippeth believe that monthly budget review meetings will be necessary for the remainder of the year to make sure that the budget remains in line with revenue projections.
The Finance Committee met last week to discuss the issue. Income tax revenues have been increasing 5% per year for the last two years, and Auditor Beth Gundy anticipates a similar increase this year. But at the same time, there have been 19% increases in supplies and materials, putting a crimp on the city's finances.
Long-term solutions to the city's financial situation include urging the state Legislature to increase the amount of Local Government Funds that it provides to counties and municipalities around Ohio.
Pay increase for sanitation workers
In other action, council approved an increase to the base salary of sanitation workers in an effort to attract and retain employees.
Currently new workers in the sanitation department are paid $15 an hour; those with 5 to 10 years of experience receive $16; and those with 10 to 15 years of experience receive $17 an hour. Workers with 15 to 20 years of experience earn $18 an hour. The salary increases to $19 an hour for workers with 20 to 25 years of experience, and anyone with more than 25 years of experience makes $20 an hour. Under the new plan, new employees and those with up to 20 years of experience would earn $18 an hour, beginning March 4.
This would impact five of the 10 employees in the department.
This increase would cost the city $31,200 annually, with the money coming from the enterprise fund and not the general fund. Service Director Ron McAbier noted the enterprise fund is a strong one, with a $626,000 carryover from last year.
In explaining the need for the pay increase, McAbier said, "Not only are we trying to attract the employees, but we have to try to retain those employees. So that's the balancing we've been having in that department."
In the last six months, the sanitation department has lost four employees to private businesses.
The city's contract with sanitation workers expires at the end of the year.
"This is a start. I think this is probably just a stopgap, but we'll address it in a few months when we go into negotiations," McAbier said.
In his mayor's report, Day told council that the city has removed the batting cages at Tuscora Park. The cages have been inoperable for several years. RTY, Inc., which operates rides at the park for the city, has plans to obtain three more kiddie rides for the midway. Removal of the batting cages will make room for the new rides.
Reach Jon at 330-364-8415 or at jon.baker@timesreporter.com.
This article originally appeared on The Times-Reporter: Plan developed to address New Philadelphia budget shortfall
