Fri Feb 10 2012
By Diane Smith
Record-Courier staff writer
Ravenna Mayor Kevin Poland will be meeting with representatives of the city’s labor unions in the weeks ahead in an effort to avert a budget shortfall by the end of next year.
Poland said all options are on the table, including renegotiating the labor contracts with the Fraternal Order of Police, the Ravenna International Association of Firefighters and the American Federation of State, County and Municipal Employees.
“Right now, there are no options not on the table,” Poland said.
The city is facing a potential budget crisis by the end of next year, according to Finance Director Kim Cecora. Interest income is down by $500,000, and income tax revenue is flat at best, he said.
While the city has enough money to operate as normal this year, there could be a financial shortfall by the end of 2010, he said.
“We need to find a way to adjust the way we’re doing business,” Cecora said.
The city faced a similar budget crisis in 2004, when interest income suffered in the wake of the Sept. 11 attacks. At that time, then-Mayor Paul Jones angered residents by laying off 19 members of the city’s safety forces.
“I never want to be in the position we were in in 2004, when we had staff reductions,” Cecora said. “I never want to end up there again.”
However, he noted, the city’s safety forces do account for a significant portion of the city’s budget.
All the labor unions have contracts with the city that run past 2010, Poland said. However, those commitments could put the city in a financial bind should the economy not improve, he said.
“In my opinion, (renegotiating the contracts) is certainly one of the options that should be on the table.”
The city already has an attrition policy and has several vacant positions that have not been filled, he said.
“If we don’t do something, it is going to be a large problem,” Poland said. “If we work together in good faith, we can look at some of the options.”
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