DaytonDailyNews.com

DAYTON — Some 554 city of Dayton employees have been offered a buyout as part of ongoing efforts to reduce a projected $13 million deficit for 2009.

"The troubled economy and unprecedented reduction in revenue have created a financial crisis unlike any other," Dayton City Manager Rashad Young wrote in a Oct. 1 letter to employees. "I sincerely regret the need to take these drastic steps; however, the current and future economic times require some very tough decisions and changes in how we do business."

Employees being offered the deal are all members of the Ohio Public Employment Retirement System, which includes: executives, such as department directors, managers, mid-level mangers, non-bargaining clerical workers, part-time staff, members of the Building Trades Council and court personnel.

"While we are still in the process of formulating the budget for 2009, it is clear that we will have to make changes to our organization which will include the abolishment of positions and the reduction in some services," Young said.

Eligible employees who want to participate in the Voluntary Separation Plan must do so by 5 p.m. on Oct. 31.

The city also hopes to make a similar offer to 997 members of the Dayton Public Works Union, largely Public Works employees. Those discussions are still ongoing, Tom Biedenharn, Dayton's director of public affairs said.

Young has already approached the city's four bargaining units and asked them to give up 2009 pay raises of 3 percent to fend off the budget shortfall. The unions have signed contracts agreeing to the pay raises, valued at $2.6 million in 2009 and $1.2 million in 2010.

Roughly 70 percent of the city's 2,395 employees are represented by unions. If the unions agree to the wage freeze, mid-level managers and managers also would see no 2009 pay increases.

Tom Ritchie Sr., director of field services and organizing, AFSCME Ohio Council 8, AFL-CIO, said the union has an expert reviewing the city's financial records.

"It's the first time we've had an economist on site," Ritchie said. "We're already looking at the city's financial records and seeing what other information we need.

City of Dayton employee buyout terms

•Employees participating in the buyout will receive a lump sum payment, after their separation, equal to 25 percent of the first $50,000 of their base salary and an additional 5 percent of the portion of their base salary that exceeds $50,000.

•Full-time city employees multiply their regular hourly rate times 2080 hours to determine their base salary. Part-time employees multiply their hourly rate by 1820 hours.

•By accepting the buyout, employees waive the right to be placed on any Dayton Civil Service Board reinstatement list.

•Employees will receive the normal vacation and sick leave payout.

•Employees must submit an application to participate in the buyout by 5 p.m. on Oct. 31. Separation from employment must occur no later than Dec. 31.

*Source: city of Dayton