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Moraine dips into rainy day fund, makes other budget adjustments

Moraine city officials: There’s no place to go but up

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By Kristin McAllister, Staff Writer 10:42 PM Sunday, October 25, 2009

MORAINE — Heading into 2010 with a $5.5 million deficit, Moraine officials are moving forward with layoffs and reduced operations and hoping they’ve seen the last of such cuts.

“We’re trying to keep from having to have any more layoffs, but it depends on what we run into next year,” said Moraine Mayor Jean Matheny. “We don’t like the fact that we’ve had to do some of these things, but sometimes it’s necessary. We’re just trying to move forward and have as little impact on residents as possible.”

The city relies heavily on income tax for its revenue, and for decades enjoyed the luxury of being home to several industrial plants, including General Motors Corp., Delphi, Cooper Tires, and Plastech Industries.

But as more companies closed up shop in the city, its nearly $20 million annual budget has dropped. The closures have forced Moraine to start tapping into its rainy day fund, which is presently at about $12 million.

For the 2009 budget, Moraine took $2.5 million from cash reserves to fill a deficit gap.

“That’s what it’s there for,” said John Mahoney, deputy director of the Ohio Municipal League. “If you’re going to rely on an income tax, then the reserves are there just for that reason.”

On Oct. 8, the Moraine council approved a plan to eliminate 28 full-time, 30 part-time and all 129 seasonal Splash Moraine positions, leaving the city with 251 remaining employees.

The city also implemented furlough days and reduced hours at the Payne Recreation Center.

This reduction plan is expected to save the city $1.5 million for 2010, with the remaining $4 million deficit to be eliminated by its cash reserves.

City Manager David Hicks said these reductions were needed to keep Moraine’s operations commensurate with its changing commercial and industrial base.

In 2005, Moraine’s total tax income was $18.4 million, which benefitted from the nearly 5,000 employee at GM. Last year, the city’s total tax income dipped to $15 million, just as the last 1,200 GM workers left the plant.

This year, the city is projected to collect $13 million.

He said city officials are developing three- and five-year, long-term plans that include six- to eight-month benchmarks to cut expenses and reduce the city’s reliance on its cash reserves.

An increase in furlough hours is likely, Hicks said, along with cuts in office equipment and changes to facility operations.

He said the city also has initiated a voluntary suspension of its take-home car program.

“We’re trying to avoid (more) layoffs, but part of it is going to depend on our labor negotiations next year,” Hicks said.

Of the city’s 251 employees, 94 are represented by three different unions.

Ross Rader, a spokesman with the Fraternal Order of Police/Ohio Labor Council that represents Moraine’s 34-member police force, said compromising is in everyone’s best interest. The police union’s contracts expires next year.

“Generally, we make some kind of concession, rather than have layoffs,” Rader said. “Most are sort of the mind set that the city is good to us in good times, and now we have to step up to the plate and share some of the responsibilities.”

Rader said he hopes Moraine can find its way back.

“For years, Moraine was sort of shock proofed, because of the employers in the area. That sort of went away in the last four, five years, so it’s a whole different ball game now,” he said.

Rick Tincher, a retired GM and Delphi worker and current chairman of the UAW Community Partnership, said Moraine is “definitely in a transition.”

Of course, he said the entire region is in a stage of transition and reinvention.

“That’s the hope we have,” Tincher said, “that our community has been known for innovation and what will help us out of this downturn.”

Amount city of Moraine has used from rainy day fund

2005 — $757,632

2006 — None. City had income surplus of $4.9 million

2007 — $437,233

2008 — $4 million

2009 — $2.5 million

2010 — $4 million (estimated)

Source: City of Moraine

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how can you justify the same number of police and fire employees with less businesses, people, and cash. I see them all the time sitting in their cars. There is nothing left to do.

moraine
11:23 AM, 10/26/2009

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The City needs to wake up and realize that they don't need the same services they needed in 2005. Too many cops, too many firemen for the call load. Yes, it's tough to lay people off, but reality is reality, and it's time to do it.

morainian
12:01 AM, 10/26/2009

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