CAPE MAY — City Council met for two hours Friday March 13 in a special meeting to discuss budget cuts proposed by Mayor Edward J. Mahaney Jr. and Councilwoman Terri Swain but did not come to a consensus and scheduled another meeting for Monday March 16 at 1:30 p.m.
Councilman Neils Favre suggested a city employee wage freeze.
Mahaney and Swain proposed reductions to cut a penny from the tax rate through savings in salaries and wages achieved by the elimination of positions by attrition, freezing promotions and containing overtime costs. They proposed five full time and one part time job would be eliminated, all of which would be vacant on or before June 30, 2009.
Mahaney said he heard from department heads and council following their proposed budget cuts. He said he wanted to maximize the benefit to the taxpayers and also keep city operations at the maximum level at the same time.
Council discussed a proposal of freezing employee promotions for 2009. Deputy Mayor Linda Steenrod said she was concerned about cutting promotions when another proposal calls for cross-training and moving employees around to cover positions that would remain unfilled when a vacancy occurred.
“If positions are cut, it makes it more to get them back,” she said.
At council’s last meeting, Mahaney said council should immediately review and modify as appropriate the existing ordinance and resolutions regarding the organization of police, fire and beach patrol. He questioned the need for three, full time detectives and one juvenile/ D.A.R.E. officer. By reassigning at least two of the officers, overtime in the police department could be reduced by $30,000, said the mayor.
Currently, $195,000 is budgeted for overtime in the police department.
Steenrod said she thought all the positions should remain in the budget unless it is later discovered certain jobs are not needed. She said she opposed any cuts to the police and fire departments.
Mahaney said it was better to cut jobs through attrition. He said the city was in labor negotiation with five different groups of United Auto Workers, which represents most city employees.
Favre said he had strong feelings on police overtime and eliminating a firefighter position. He said the fire department was far better than it was six years ago and he did not want to go backwards.
Favre said he would not risk lives of police and fire personnel by cutbacks. He suggested a wage freeze for all city employees. City Auditor Leon Costello said a wage freeze for some city employees would require union contract concessions.
Contracts that are currently in negotiation are public works/water sewer employees, police dispatchers, city hall employees, middle and upper management. Police and fire personnel are under separate contracts with police under contract until Dec. 31, 2010 and firefighters under contract until Dec. 31, 2009.
City Manager MacLeod told the Herald a wage freeze would save about $250,000 based on the last two to three years.
Costello said he had not received a figure of how much state aid the city would receive but he believed it would be the same amount as last year, $423,000.
He said one cent in the budget equaled $224,000. To reduce the local purpose tax rate by a penny from a proposed increase of 2.1 cents, the mayor and council would need to cut at least $224,000 from the city’s budget $15 million budget.
Mahaney said council intended to introduce the budget Tuesday March 17 and expected to adopt the budget at council’s April 22 meeting.
Costello reminded council that it is operating with a state cap on the tax levy. He noted the downturn in national economy has decreased revenue and interest payments to the city.
The state wants cities to stop spending money on employee health insurance and salaries, downsize and consolidate with other municipalities, said Costello.
MacLeod said less money could be spent on capital improvements since money remained from previous projects. A 5 percent down payment is required when a project is bonded. For 2009, $70,000 is needed to bond capital improvement projects anticipated to cost $1.4 million.
As of Dec. 31, 2008, the city had $70,000 in the account of unallocated dollars. In January, council spent $110,000 on Rotary Park improvements leaving $59,000. Council agreed to use $30,000 in this year’s budget.
MacLeod said balances existed in old bond ordinances from projects dating back to the Washington Street Mall project, Convention Hall replacement, the purchase of East Cape May property and the former Vance’s Bar and road projects.
The city has capital requests for $4,500 for a requisition system for the finance department, $150,000 for a roof for the library, $120,000 for a new concrete apron at the front of the firehouse and $30,000 to replace the roof on the fire museum.
Favre requested $3,000 be spent to purchase a ballistic shield for the police department. He said the poor economy has hurt the city’s residents and cuts to the budget should be made this year.
Swain said at least four stores closed in the city that had been in business for years. She said Cape May is not “recession proof.”
MacLeod said the budget has several tourism related expenses including $2,500 for Movies on the Beach, $9,000 for July Fourth fireworks and $7,000 to supplement cost of trolley service.
At the close of the meeting, Mahaney said council had agreed to about a net decrease in the budget of about $72,000. He said council would review with City Solicitor Tony Monzo had a wage freeze could be enacted at Monday’s meeting.
Lower Township – Who are these people that are obvious experts on trash cans and leaf pick-up? Maybe they don't have any trash to put out or leaves in their yard!!
