Kent city staff cutting benefits to save jobs

The Kent Police Officers Association union voted Wednesday to allow the city to hold off on making contributions to a deferred-compensation package for officers.

The union took the vote in an effort to help the city save enough money to avoid undertaking employee layoffs.

The city would save an estimated $210,000 this year, without having to pay into the retirement package for nearly 130 officers from April 1 through the end of 2009, said Jeff Cobb, a Kent Police officer and president of the Kent union.

City leaders met this past week with representatives of all four city unions, to absorb a projected $4 million deficit this year to the city’s general fund. Up for discussion are days without pay, as well as other reductions, in an effort to avoid layoffs in 2009.

“I’ve been taken aback by the response,” said John Hodgson, city chief administrative officer, of the positive response from staff. “There has been overwhelming support across the board to save co-workers’ jobs.”

The other city unions include Kent Local 1747 of the International Association of Firefighters, Teamsters Local 117 that represents public works, parks and facilities employees, and Local 2617 of the American Federation of State, County and Municipal Employees (AFSCME) that represents administrative staff, corrections workers and building inspectors. The city also employs about 230 non-union workers.

“All of the bargaining units are willing to come together to help avoid layoffs completely if we can,” said Kathleen Etheredge, president of AFSCME Local 1747 and a city senior financial analyst.

Etheredge said members of her union will meet Feb. 25 to discuss changes in their contract with the city. Any vote on contract changes would be taken at a later date.

“We have nothing solid at this time,” Etheredge said of potential cuts to save money.

Leaders of the firefighters and Teamsters unions could not be reached for comment Wednesday as to when their unions will meet to hash out some cost-cutting.

Cobb, speaking for his police union, said members knew something needed to be done.

“By doing this we will not impact the take-home pay,” Cobb said. “That was the strongest selling point. It hurts retirement for some, but in the larger scheme it will do something to help with minimal impact.”

City officials need to cut about $4 million in the general fund in 2009 based on the revenue shortfall from sales taxes and permit fees predicted for the rest of the year, Hodgson wrote in a Feb. 11 memo to the City Council.

The revenue shortfall includes about $1.6 million in sales-tax revenue, $1.5 million in various city permit fees and inspection fees, $500,000 in building permit fees and $400,000 in lower interest from city investments, said Bob Nachlinger, city finance director.

The city already has slashed $2.1 million from the general fund through hiring freezes, delays in filling positions, military leave, transfers to non-general fund positions and pending separations. City officials saved another $370,000 through operating-budget cuts. About 20 open positions with the city will remain unfilled indefinitely.

The city also will freeze spending on about $1.7 million worth of capital projects, including delays in painting, carpeting and other general-maintenance projects.

That leaves another $1.5 million to cut to reach the goal of $4 million. And that’s where the more than 800 city employees are being asked to help.

If members of the four unions as well as the non-union employees agree to pay cuts or other reductions, city officials estimate the savings could be enough to avoid any layoffs.

“Depending on what they do, we could reach the gap (of $1.5 million), and not need to reduce the work force,” Hodgson said. “That would save about 25 jobs.”

The Kent City Council and the unions must agree and approve any changes to the existing contracts.

“I know this is a really tough time,” Councilwoman Deborah Ranniger said at the Operations Committee meeting Tuesday where Hodgson explained the budget shortfall and potential savings from employee-pay reductions. “We are going through an unprecedented period. But it looks like we have some options.”

Individual employees also have come forward to offer to take a week off without pay, take every other Friday off without pay or not take cost-of-living adjustments, Hodgson said.

Even with the cutbacks by employees, the city could face further cuts down the road if the revenue shortfalls are more than predicted.

“This is the forecast and solution now to the end of the year,” Hodgson said. “But that could change. We don’t know where the bottom is.”

Cobb expects to have to return to union members for more concessions later this year.

“It’s a start,” Cobb said. “After July 1st, we’ll probably have to find other ways to help.”