City requests contract reopener

STEUBENVILLE - Two months after the city's three unions agreed to contractual health care concessions, the local presidents of the Fraternal Order of Police Lodge 1, International Association of Firefighters Local 228 and the AFSCME Local 2015 have been asked to return to the contract bargaining table to discuss monetary issues.

City Manager Bruce Williams sent letters to the union heads Tuesday seeking a re-opening of their labor contracts.

The letter signed by Williams, Finance Director Michael Marshall and Law Director S. Gary Repella cites a projected deficit of $844,000.

"Income tax collections so far are running behind last year by $192,000 as of the end of May. This year's deficit is only one in a succession of deficits going back over five years. In each of the prior years, we have had the ability to cover the deficit with surplus funds. We are able to use surplus to cover the 2009 deficit as well, but that is the end of our funds. After this year, we can no longer cover deficits with our savings accounts," according to the administration letter to the union leaders.

"Since the city cannot afford to go forward without any changes, and since the labor contracts otherwise don't expire until next year, the city has no choice but to ask you to return to the bargaining table to begin discussions on contract modifications which will address the issues," the letter read.

Chris Blackburn, president of the local firefighters union, called the request to re-open the labor contract "a sad day for the city to know that we could be looking at possible job cuts. It is all speculation at this point, but we agreed to changes in our health care plan two months ago to preserve jobs and now here we are again.

"There are three things that attract people to a community. The top priority is safety followed by education and recreation. We don't want to see our safety force numbers cut or any other city jobs," said Blackburn.

"We agreed to changes in our health care plan, and I don't think we have allowed enough time to see the results of those changes. I know the agreement on health care is saving the city money, but we need more time to see the effects of those savings," noted Blackburn.

"We are willing to listen. We have to know what they want. But this is not a blanket opportunity to renegotiate everything in the contract," he added.

The firefighters' contract expires in November 2010, while the FOP and AFSCME labor agreements are set to expire in April and May.

John Stasiulewicz, president of FOP Lodge 1, said today he can't comment on the contract re-opener request until he meets with his membership.

Bob Baird, president of the AFSCME union, could not be reached for comment.

Mayor Domenick Mucci, who is serving as acting city manager today while Williams is on vacation, said the letter from Williams to the unions "was a message to show the city is willing to sit down at the bargaining table. The administration wants to open the contracts to avoid drastic cuts and to preserve jobs."

"I think everyone realizes that 80 percent of the general fund goes toward employee salaries and benefits. So this is an effort to sit down early to discuss the issues. The letter to the unions did not discuss layoffs or job cuts. The administration wants to start contract negotiations earlier than originally scheduled," said Mucci.

Williams announced a hiring freeze in March and termed the move "a proactive matter now to avoid problems later this year."

"We have a vacancy in the police department, the recreation department and the wastewater department. Those vacancies will not be filled," Williams had noted.

Williams had said he also directed his department heads to cut overtime by half.

"Last year we saw $700,000 in overtime, and we are working to keep that figure at no more than $350,000 this year. We will still see overtime when a water line breaks overnight or the police or firefighters are called out for an emergency. But we will cut overtime where possible," said Williams.

"The city voters have been kind to us. They have supported us for years. But we no longer are seeing excess dollars from the .07-mill levy. There is no longer a surplus," Williams explained during an April interview.

"Unfortunately the financial resources we do have can't be used for operating costs. Those funds must be used for capital projects or buying supplies. We can buy asphalt or build a new city building with the capital funds but can't use that money for salaries. That is all dedicated money," said Williams.

"We provide services to the entire city population. But we are seeing an older population who are receiving pensions that aren't taxed by our city income tax. When the police or firefighters respond to an emergency, they don't stop and check to see if the resident is paying city income tax," noted Williams.

"The city administration and City Council in the future may want to consider a safety forces levy to bring stability to the issue," Williams said two months ago.

(Gossett can be contacted at dgossett@heraldstaronline.com.)