Hillsboro mayor 'cancels' layoffs
Lead Summary
By
Brandy Chandler-brandychandler@gmail.com
Just days after the 30 days' notice expired for three city employees who were laid off from the city of Hillsboro's administration building, Hillsboro Mayor Dick Zink told The Highland County Press Monday that, "The layoffs have been canceled" and two of those three employees have been recalled.
Zink had announced June 25 that the city would be eliminating three positions to help offset a projected deficit the city is facing by the end of 2011. A deputy tax commissioner, an IT audio/visual support technician with the city's public access station, and an administrative assistant/grant writer were told June 25 that the city was making layoffs and their jobs would be eliminated in 30 days. Zink said that although it was not required to give the employees any notice, but he felt it was the right thing to do.
Zink said Monday, July 26 that, "We're going to wait and see where we are at the end of the year. There are some things happening to improve our cash flow. We're going to go month to month and see what happens."
Zink declined to say what cash flow improvements the city is seeing.
As of the July 12 council meeting, the city was facing a projected deficit of $269,000 by the end of 2011.
Council voted to recommend at that meeting that Hillsboro Auditor Gary Lewis prepare the annual tax budget, which is submitted to the Highland County commissioners, to have an ending balance of around $450,000 by the end of 2011. Lewis said he has prepared the tax budget as council voted him to; however, no actions have been taken by the city since then to see that budget to fruition.
Cuts of approximately 21 percent in general fund departments would have to be made to reach that figure, he said.
The deputy tax commissioner and the administrative assistant, he said, have been recalled; however, the IT technician has found employment elsewhere and Zink said his duties will divided among other city employees.
Hillsboro Auditor Gary Lewis told The Highland County Press that the move would have saved the city approximately $35,000 to $37,000, after paying unemployment, through the end of 2010, and approximately $80,000 in 2011.
Hillsboro City Council President Lee Koogler told The Highland County Press that he was not aware the layoffs had been canceled, and noted that the administration manages employees, not council.
"It is not council's job to micromanage the city," Koogler said. "The finance committee will be taking a look at this and making recommendations when appropriate."
Koogler said he was not aware of any recent improvements to the city's cash flow.
Lewis told The Highland County Press that he had prepared the city's tax budget as council had ordered.
"With the cancellation of the layoffs, it reverses that to a degree," Lewis said. "That was going to be a part of it. Apparently (Zink) knows something I don't. I am not projecting any new cash flow."
Lewis said that, "The auditor's side of the equation has not indicated there going to be (any additional cash flow). Our general fund is in a dire, dire situation as of today (Monday). Our unencumbered balance is $276,744.70. That is the lowest it has ever been since I've been here. Obviously, there is going to be some revenue flowing back in, but there are also expenditures flowing out."
According to Lewis, the average monthly payroll for the city approximately $200,000. He does not anticipate the city will not be able to afford a payroll, but the city's ending balance for the year is going to be "so slim."
Zink said that in the weeks his office has been preparing for the departure of the employees he has truly become aware of the volume of work they do, and without them, there would be too much left for the remaining employees to take care of.
"For six years, we have come in under budget," Zink said. The last two budget years have been tight. I know that some expenses have gone up, but we have saved over $751,000 from January 2004 through October 2007. Some other things have been done since then. I think it's a little over a million in savings to the city."
Zink said that when he looks at the total expenses of the city, he does not know how the city "is broke." He said total numbers for the city were at $2,690,981 as of January 2004. As of April 2010, he said the numbers were at $4,662,100.
"If we had this (indicating the 2004 numbers) six years ago, and this (indicating the 2010 number), how come we're broke?" Zink said regarding the $2 million difference.
Zink said that also $1 million had been taken from the city's lock box and put into CDs to gain interest.
Lewis said that the total figures Zink is referring to are "irrelevant."
"That is totally irrelevant," Lewis said. "My unexpended balance for all funds, 'all' funds, as of today is $4,369,212 that is in the bank today. Only $553,099 is allocated to the general fund and by law I cannot take money out of the other funds and put them into the general fund. It is irrelevant we have over $4 million in the bank today and it is irrelevant in 2004 we had $2 million."
Just days after the 30 days' notice expired for three city employees who were laid off from the city of Hillsboro's administration building, Hillsboro Mayor Dick Zink told The Highland County Press Monday that "The layoffs have been canceled" and two of those three employees have been recalled.
Zink had announced June 25 that the city would be eliminating three positions to help offset a projected deficit the city is facing by the end of 2011. A deputy tax commissioner, an IT audio/visual support technician with the city's public access station, and an administrative assistant/grant writer were told June 25 that the city was making layoffs and their jobs would be eliminated in 30 days. Zink said that although it was not required to give the employees any notice, he felt it was the right thing to do.
Zink said Monday, July 26 that, "We're going to wait and see where we are at the end of the year. There are some things happening to improve our cash flow. We're going to go month to month and see what happens."
Zink declined to say what cash flow improvements the city is seeing.
As of the July 12 council meeting, the city was facing a projected deficit of $269,000 by the end of 2011.
Council voted to recommend at that meeting that Hillsboro Auditor Gary Lewis prepare the annual tax budget, which is submitted to the Highland County commissioners, to have an ending balance of around $450,000 by the end of 2011. Lewis said he has prepared the tax budget as council voted him to; however, no actions have been taken by the city since then to see that budget to fruition.
Cuts of approximately 21 percent in general fund departments would have to be made to reach that figure, he said.
The deputy tax commissioner and the administrative assistant, he said, have been recalled; however, the IT technician has found employment elsewhere and Zink said his duties will be divided among other city employees.
Hillsboro Auditor Gary Lewis told The Highland County Press that the move would have saved the city approximately $35,000 to $37,000, after paying unemployment, through the end of 2010, and approximately $80,000 in 2011.
Hillsboro City Council President Lee Koogler told The Highland County Press that he was not aware the layoffs had been canceled and noted that the administration manages employees, not council.
"It is not council's job to micromanage the city," Koogler said. "The finance committee will be taking a look at this and making recommendations when appropriate."
Koogler said he was not aware of any recent improvements to the city's cash flow.
Lewis told The Highland County Press that he had prepared the city's tax budget as council had ordered.
"With the cancellation of the layoffs, it reverses that to a degree," Lewis said. "That was going to be a part of it. Apparently (Zink) knows something I don't. I am not projecting any new cash flow."
Lewis said that, "The auditor's side of the equation has not indicated there going to be (any additional cash flow). Our general fund is in a dire, dire situation as of today (Monday). Our unencumbered balance is $276,744.70. That is the lowest it has ever been since I've been here. Obviously, there is going to be some revenue flowing back in, but there are also expenditures flowing out."
According to Lewis, the average monthly payroll for the city is approximately $200,000. He does not anticipate that the city will not be able to afford a payroll, but the city's ending balance for the year is going to be "so slim."
Zink said that in the weeks his office has been preparing for the departure of the employees he has truly become aware of the volume of work they do, and without them, there would be too much left for the remaining employees to take care of.
"For six years, we have come in under budget," Zink said. "The last two budget years have been tight. I know that some expenses have gone up, but we have saved over $751,000 from January 2004 through October 2007. Some other things have been done since then. I think it's a little over a million in savings to the city."
Zink said that when he looks at the total expenses of the city, he does not know how the city "is broke." He said total numbers for the city were at $2,690,981 as of January 2004. As of April 2010, he said the numbers were at $4,662,100.
"If we had this (indicating the 2004 numbers) six years ago, and this (indicating the 2010 number), how come we're broke?" Zink said regarding the $2 million difference.
Zink said that also $1 million had been taken from the city's lock box and put into CDs to gain interest.
Lewis said that the total figures Zink is referring to are "irrelevant."
"That is totally irrelevant," Lewis said. "My unexpended balance for all funds, 'all' funds, is $4,369,212 that is in the bank today. Only $553,099 is allocated to the general fund and by law I cannot take money out of the other funds and put them into the general fund. It is irrelevant we have over $4 million in the bank today and it is irrelevant in 2004 we had $2 million."
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