Buyouts to save city zilch this year

By David Skolnick | July 9, 2009 at 12:03a.m.

Youngstown finance director David Bozanich

The police reductions are expected to save the city about $500,000 next year.

YOUNGSTOWN — Though the financially struggling city is reducing its police force by six through an early-retirement offer, it won’t save any money from the deal this year, its finance director said.

There is the possibility the buyouts could cost the city more money this year than it will save this year. The city is looking to make up a projected $1.15 million shortfall in its general fund in 2009.

The city will save nearly six months’ salary as well as health-care premiums, retirement contributions, overtime payments and other expenses for the six officers for the rest of the year, said Finance Director David Bozanich. But that amount will be wiped out by the severance packages the officers will receive for unused sick and vacation time.

“We’ll be close to break-even” this year, Bozanich said Wednesday after the board of control approved the buyouts for the six. “This does nothing to solve our 2009 budget.”

Calculations for the severance packages are being done and should be finalized and paid to the officers shortly, he said.

Beginning in 2010, the buyout of the six police officers will save the city about $500,000 annually, Bozanich said. The city doesn’t plan to replace the officers in the foreseeable future, he said.

Layoffs “are a probability” this year, Bozanich said. “We don’t see another option.”

The city cut $665,000 from the police department’s payroll budget in March. That is equivalent to 22 to 26 officers losing their jobs.

The city also cut $205,000 from the payroll for the street and parks departments and for clerical workers. That’s equivalent to about eight to 12 jobs.

To make matters worse, the city’s income-tax collection this year is about $275,000 less than predicted.

City administrators have discussed layoffs, particularly in the police department, since the beginning of the year. To date, the city hasn’t laid off any of its employees.

City administrators are talking to firefighters about a possible buyout, and want to get the union that represents its 115 patrol officers to agree to cost-cutting measures.

The ranking police officers taking the buyout will receive a year’s base salary paid over five years beginning in 2010.

Lt. Tom Mylott, whose annual base salary was $71,922, retired Tuesday from the force.

The last day for the other five is Friday, said Law Director Iris Torres Guglucello.

The annual base salary of three of the remaining five — Sgt. Mike Dobran, Detective Sgts. John Vogrin and Joe DeMatteo — is $62,541.30. Lt. William Rafferty earned $71,922.50 in annual base pay while Capt. Dave Williams received $82,710.87.

While none of the six will be replaced, the city has to promote a detective sergeant or sergeant to lieutenant as part of the minimum staffing level required under an agreement the city reached with the union representing ranking police officers. That will cost the city an extra $9,381.20 annually.

That additional cost is included in the estimated $500,000 annual savings, Bozanich said.

skolnick@vindy.com