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Facts on City of Sedona Reduction in Force (RIF)

sedona times / May 3, 2010 / No Comment

This article written and submitted by the City of Sedona staff.

Sedona AZ (May 3, 2010) – The City of Sedona’s employees are the most valuable resource we have in providing quality customer service to the public. However, they also represent 65% of the City’s operating costs.

When revenues decline at the rate they have over the past 24 months, the only option for a reasonably balanced budget and long-term financial stability is to reduce personnel costs. While Sedona had been able to avoid the traumatic impacts of layoffs throughout much of the last two years, the realities of reduced revenues facing cities, businesses and individuals across the nation and here in Sedona required this action.

ISSUE: “Recent reductions in force (“layoffs”) were unfair.”

FACTS:

ü The City Manager received approval from City Council during a public meeting on January 27, 2010 to implement RIF’s if necessary as a budget balancing strategy.

ü Minutes from this public meeting were posted per statute, and Department Heads reviewed them on January 28. It was recommended that they share the information from this meeting with their staff.

ü April 9, 2010 – 8 City employees were notified that their positions were being eliminated.

ü Reductions in force were conducted according to the guidelines of the City’s approved personnel manual.

ü Decisions on the positions to be reduced were made based on ability to reorganize operations to optimize service levels and the cost of service. For example: eliminating two Sergeants, who were eligible for retirement benefits, was chosen over eliminating four police officers.

ü All employees affected by the reduction were provided 10 days of separation pay, full payment of their accrued vacation time, and payment of COBRA coverage through June 30, 2010. In addition, each was offered additional compensation based on years of service:

Up to 5 years of service – Two (2) weeks of additional pay
More than 5 years but less than 15 years of service – Six (6) weeks of additional pay
More than 15 years of service – Ten (10) weeks of additional pay

ü Both sergeants that were eliminated are fully vested and eligible to retire within the Public Safety Personnel Retirement System (PSPRS).

ü The City has notified those who were affected by layoffs of two recent openings within the City. Those positions will not be offered to the general public if they can be filled by one of the employees affected by the layoffs.

ISSUE: “The City could afford to keep these employees if it would use its reserve or ‘rainy day funds.’”

FACTS:

ü General Fund Revenues have decreased from $11.7 million in FY 2008 to a projected $9.4 million for FY 2011. The City’s ability to limit reductions to only 8 positions was bolstered solely by an additional $1.6 million that would have been automatically transferred to capital projects in prior years.

ü Staff is tasked with providing and funding a reasonable level of customer service across all functions of the City’s government within the scarce resources available.

ü Non-personnel operating expenses were reduced and contained by more than $1.2 million prior to reductions in force.

ü 14 positions were eliminated due to vacancy before existing employees were impacted.

ü With a savings of $600,000 (in year two) for the 8 reductions and little to no revenue growth anticipated in the next 3 to 4 years, this would reduce the reserve by over 25%, using a total of $2.4 million to maintain these positions through 2013.

ISSUE: “The public’s safety will be negatively impacted by Police Department reductions.”

FACTS:

ü The first priority for reductions in the Police Department was to maintain officer levels and “feet on the street” and retain individuals with particular skillsets and training to provide the highest level of public safety to Sedona.

ü The proposed Police Department budget still represents 20% of the overall operating budget – greater than any other department and all funding for outside community agencies.

ü The two officer positions eliminated due to vacancy in 2009 had never been filled before they were eliminated.

ü The approved number of full time officers in 2006 was 19 – [18 plus 1 grant-funded School Resource Officer (SRO).]

ü The approved number of full time officers today is 19 – [17 plus 2 grant-funded SRO’s.]

ü The approved number of full time sergeants in 2006 was 6 and the approved number of sergeants today is 4.

ü The sergeant to officer ratio (not including SRO’s) will go from a 3 to 1 ratio to a 5 to 1 ratio, with two police commanders providing additional support to the squads.

ISSUE: “Remaining employees are afraid they will also lose their jobs.”

FACTS:

ü At this time there are no plans for other layoffs.

ü The proposed FY 2010-11 budget is balanced based on existing revenue assumptions and expenditure reductions.

ü Should revenue decline further than anticipated, or grant funding be eliminated, additional reductions to services and personnel costs may be required to remain balanced. Possibilities include: