Westminster will impose job cuts by Katie Jones for the Westminster Eagle

20080718 Westminster will impose job cuts by Katie Jones for the Westminster Eagle

Westminster will impose job cuts

Layoffs, revision of benefits announced

By Katie V. Jones

Originally Posted on the Westminster Eagle 7/16/08

Westminster Mayor Thomas Ferguson announced Monday the elimination of several jobs within city government as a means to cut the city’s budget in the face of what he called a “challenging year.”

A press release issued Monday said the cuts are needed “to facilitate a balanced budget.”

The city will not fill two vacant positions in the Office of Finance and the Mayor’s Office, and will eliminate the position of Housing Rehabilitation Coordinator and Manager of Planning.

Additionally, the city’s Code Enforcement Officer and Section 8 Housing Inspector positions will be merged into one job, and the City Clerk position will be trimmed from a full-time position to part-time.

Two administrative assistant positions will be cut, but two “staff assistant” positions will be created.

The release said a severance package, including pay and benefits, will be set up for employees whose positions have been eliminated.

In addition, the release announced changes to current city employees’ benefit packages.

Employees will be asked to double their contribution to health care policies from 7 percent to 14 percent.

Also, retirees’ health care benefits will be modified, and employees hired after July 1 of this year will not be eligible for this benefit, the press release stated.

“This has been a challenging year for the city as revenues have declined and expenditures have continued to increase,” said Ferguson in the release.

“Our three-year operating projections do not indicate this situation will improve significantly in the immediate future,” he addded. “Accordingly, I am reluctantly outlining the steps we have taken to adapt to this financial situation.”

Borrowing $3.5 million

The job cuts were not discussed at Monday’s meeting of the mayor and council.At the meeting, though, city officials did discuss how they would spend the $3.5 million loan that the council authorized in a special session July 9.

The bond money is targeted at road overlay projects, and Jeff Glass, director of public works, briefed the council on which streets would be slated for repairs and the possible order of completion.

Glass said that while his office has organized 11 groupings of streets for “some orderly fashion,” the future contractor of the project may have their own suggestions on how the work should proceed.

Glass noted that while plans are to complete all 11 groups, the rising cost of asphalt could prevent all from completion.

At the special session on July 9, Ferguson had noted that if asphalt prices continue to rise, the city may opt to stall the road repair program and return some of the $3.5 million without using it.

Prices, he said at last week’s meeting, are “going due north,” and will already affect the number of projects the city thinks it can accomplish.

The general obligation bond will be with BB&T Bank and is structured for nine years, with a two-year interest-only component. If the city chooses not to use the full amount, there is no penalty for early repayment, officials said.

At Monday’s session, the council agreed to put the overlay project out to bid instead of extending an existing order with C.J. Miller. While this will delay the project, it is necessary, Ferguson said, to get “the best price we can.”

That process will take 30 days, which Glass described as “the fast track.”

“It has to be advertised and the companies have to put their bids together,” he said. “Thirty days is cutting it.”

While Glass was fairly confident that the first two groups of streets would proceed as planned, Ferguson reminded everyone that the proposal was a “plan.”

“This is a plan and it is subject to modifications and change,” he said.

Jim Joyner contributed to this story.

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