The moves by the city, which employs about 100 full-time and nearly 50 part-time workers, were made last month as a result of brighter financial outlook after the May passage of a five-year income tax hike, said Moraine City Manager David Hicks.
“Our goal was to get back to what we consider normal operations during 2014 as soon as the opportunity presented it,” Hicks said.
“We needed sustainable levels of expenses versus our income,” he added. “And fortunately, we were able to consistently stay in sustainable levels in the last several months and looking forward it looks like we (are) there.”
The city has been making cuts since the General Motors plant closed last decade. GM’s decision cost Moraine thousands of jobs and about half of its income tax revenue, causing the city to spend its financial reserves.
Since 2009, the city has laid off employees, cut jobs through attrition and instituted furloughs and pay cuts. Meanwhile, it has skimped on road repairs and delayed purchases.
The temporary 0.5 percent tax hike to 2.5 percent passed by voters this spring is projected to add $1.88 million annually to the city’s budget, which was $16.5 million in 2013, according to city records.
The tax hike, which took effect July 1, has generated about $540,000 so far based on revenue through October with the same period in 2013, according to Moraine Finance Director Richard Sexton.
The elimination of the furloughs and pay cuts are estimated to cost the city about $800,000 annually, depending on overtime, he said.
The restoration of full pay for union workers comes as a relief, said Scott Thomasson, staff representative with the American Federation of State, County and Municipal Employees Ohio Council 8 Local 101, of which about 25 of Moraine’s approximate 80 union workers are members.
“The cut was a way to keep everyone employed,” Thomasson said. “Instead of having any of the union brothers and sisters laid off or things of that nature, everyone was trying to look out for each other, basically, by doing the cut – based on the fact that the finances just weren’t there. So it was a win-win for everyone because everyone was able to maintain their employment and health care versus somebody being laid off.”
Moraine Mayor Elaine Allison expressed similar thoughts, saying the city has weathered difficult times.
“All of Moraine’s employees have really pulled together and helped the city get through that really tough time we had for a number of years after the GM plant left,” Allison said. “All of the unions agreed to the pay cuts and staff all chipped in.”
About 1,000 jobs will be coming to the city as the Fuyao Glass Industry Group Co. Ltd. plans next year to move into the former Moraine assembly plant.
The projected income from Fuyao’s move will help get back to “normalcy,” Hick said, as it continues to catch up on capital improvement projects and build up its financial reserves.
“We’re going to end the year well in the black, financially,” he said. “And we’re certain that that’s going to continue.”
About the Author
