Tuesday, June 17, 2008
City council will also consider lending $4.9 million to three companies.
YOUNGSTOWN — City council is expected to give final approval Wednesday to a retirement/resignation incentive plan with the firefighters union that will avoid layoffs.
At least 15 firefighters must sign up by Friday’s deadline for the incentive program to take effect.
The city already has received confirmation from about 10, said Fire Chief John J. O’Neill Jr. The chief said Monday he’s confident the minimum amount needed to take the deal will do so by Friday. The city expects to save between $1.4 million and $1.6 million during the first two years of the program. The more firefighters taking the buyout, the more money the city would save, said city Finance Director David Bozanich.
The more experienced and higher-paid firefighters would be replaced by those who would make $24,000 in annual base pay during their first year on the job.
Firefighters accepting the buyout would receive their annual base salary, about $58,000 on average, paid to them in even amounts over five years.
The city is projecting a deficit in its general fund of more than $3 million by Dec. 31, and about $6 million by Dec. 31, 2009, if cuts aren’t made.
City administrators have said about 60 jobs need to be eliminated, or the financial equivalent of $3.9 million in salary and benefits, to balance the budget by Aug. 1. Deeper cuts mean fewer layoffs.
The fire department needed to cut its budget by $750,000 to avoid the loss of about 12 jobs there.
The administration is continuing to negotiate with other unions.
Also Wednesday, council will consider giving no-interest loans to three companies. Two plan to open businesses in the city and the other is relocating. The city’s board of control has final say on the loans.
Under this program, the city lends money to companies at no interest for up to 18 months. In order to receive the loans, the companies must have an irrevocable letter of credit from a bank, Bozanich said.
The companies are:
UPull-A-Part, a used auto parts store with 21 other locations, is looking to open at a 22-acre parcel at the former Youngstown Sinter Facility off Division Street. The company is seeking to borrow $2 million from the city for a $3 million project. The company plans to create 15 full-time jobs.
U Mariah Power, which makes wind turbines, is establishing a business at Northern State Metals’ facility in the Salt Springs Industrial Park. The Reno, Nev.-based company wants to borrow $1.8 million that it will use for a new wind product. The company plans to create 20 full-time jobs.
U City Printing plans to relocate its print shop from West Wood Street to property on the corner of Marshall Street and Oak Hill Avenue. The company employs about 20 and plans to add 10 more workers. City Printing is seeking a $1.1 million loan as part of its $2.8 million project.
Also, council will consider legislation allowing the board of control to pay $387,491 to Utility Contracting, a Youngstown company, for emergency repair to sewer and water lines on South Phelps Street between West Boardman and West Front streets.
The city already paid $137,238 to Utility for repair work to the sewer line on Phelps between West Federal and West Boardman streets.
Council also will vote on a request by the administration to refinance the $11.9 million the city owes for its share of the Chevrolet Centre construction cost.
The city’s current interest rate is 6.35 percent. The city could get an interest rate in the low 5-percent range, Bozanich said.
The current loan runs through Sept. 5, but the finance director wants to have the city borrow the money by the end of this month or early July at the lower rate.
skolnick@vindy.com