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lfd_rational_letter

lfd_rational_letter

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Published by The Morning Journal

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Published by: The Morning Journal on Sep 15, 2010
Copyright:Attribution Non-commercial

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07/02/2013

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The City of Lorain, Ohio
Department of Public Service and Safety
 
200 West Erie Avenue, 7
th
Floor City HallLorain, OH 44052 (440) 204-2011 Fax (440) 204-2542
 
Tony Krasienko
Service Director Safety Director Chief Deputy S/S Director Deputy S/S Director
 Mayor
Robert J. Gilchrist Philip Dore Kenneth Shawver Joseph Arendt
September 13, 2010Jonathon George6050 Doe CrossingLorain, Oh 44053Re: Statement of Rationale – LayoffsDear President George:The City of Lorain, Ohio, a municipal corporation has been experiencing funding andbudget difficulties for several years. In 2010, the City of Lorain was able to balance theannual budget passed by Council as the result of a $5 million health bond that financed healthexpense for a full year, allowing the City to utilize anticipated revenue to pay for expenseswithout health cost, coupled with a reduction in the Income Tax Credit extended to residentsthat pay local income tax to other communities.By the end of the first half of 2010, it was found that anticipated revenue was severelybehind schedule as a result of citizens not submitting estimated income tax as expected, whichresulted in Auditor Ron Mantini reducing anticipated revenue by $950,000. In order to offsetthe loss of this revenue without further employee layoffs, the administration has determinedthat it is necessary to utilize a grant opportunity from NOPEC, coupled with the savings of deferring city employee payroll for two weeks.Subsequently, The IAFF Local 267 filed a grievance, protesting that the payrolldeferral was a violation of the current CBA, and demanded the payroll deferral be reversedretroactively. A process to expedite the decision of this grievance at arbitration is scheduled toconclude on September 29, 2010. Auditor Mantini’s office has determined that should theIAFF prevail with their grievance, the City will suffer additional payroll expenses of $185,000that will not be adequately funded as a result of the diminished revenue described above.Therefore, in preparation for a possible award in favor of the IAFF in this grievance, it isnecessary to schedule a layoff as soon as possible to minimize the amount of employee’s thatmust be cut to meet the additional payroll required by such an award. Additionally, the Cityhas determined that any further layoff in the Fire Department will result in additional firestation closings, which will result in the need to reduce the number of Fire Lieutenants, whichwill in turn reduce the number of firefighters needed to be laid off from thirteen (13) to eleven(11). It should be is noted that if the IAFF does not prevail with the grievance regarding

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