Sandusky making deep cuts to operations

SANDUSKY — Sandusky officials on Monday announced Phase 1 of their multifaceted plan to limit spending as the coronavirus keeps spreading across the world, including in Ohio. Beginning this week, they'll introduce measures for how the government will save up to $2.4 million in 2020. The amount equates to roughly 10 percent of Sandusky's total budget, totaling $24.5 million. This includes: • Implementing a citywide hiring freeze and only filling vacant positions deemed "essential" on a case-by-case basis • Mandating all administrative/non-union employees who make more than $70,000 a year to take a 10 percent pay cut, effective immediately and through year's end • Asking all administrative/non-union employees who make less than $70,000 to accept one of the following: — Take a 5 percent pay cut, which would go into effect immediately and through year's end — Take one non-paid day off for every two weeks worked; It translates to working 72 hours, rather than 80 hours, thus saving 10 percent of one's pay, for every two weeks worked. This also would go into effect immediately and through year's end. As of today, representatives for Sandusky's unionized employees — police officers, firefighters, among others — haven't agreed to take a pay cut. • Forgoing the purchase of supplies, technology and vehicles • Barring employees from receiving city funds to attend training seminars and professional conferences • Re-evaluating all projects not yet under contract; This could fall under initiatives related to economic development, public art, marketing, planning, among others. Depending on many factors, officials would consider reducing, delaying or altogether eliminating an individual project. Keep in mind, projects under contract and amid construction — such as Jackson Street Pier's transformation, Shoreline Drive's reconstruction and the west side's utility upgrade and pathway inclusion — should continue without interruption. Commissioners previously committed funding for these projects. Additional measures could occur. Officials, however, remain tight-lipped on those specific slashes at this time. But nothing will happen hastily, ex officio mayor Dick Brady said. "The staff has spent a lot of time collaboratively putting together an elaborate method of cost savings for our budget," Brady said. "It does not all get acted at one time. It is meant to be phased in, and that gives us a lot of flexibility if this pandemic deepens. We can then make adjustments as to how good or bad the financial impact will be." Why is this happening? Financial uncertainty continues to swell as coronavirus-related concerns linger. During the past month, businesses closed, which meant lost employment opportunities. Popular tourist draws locked their doors and, for the upcoming season, won't open on time. And many people remain inside their homes, quarantined for the foreseeable future. What it means for Sandusky's finances: • Fewer people working translates into fewer dollars produced through income taxes, Sandusky's largest revenue source. • With Ohio's stay-at-home order in full effect, it prohibits people from gathering in groups and visiting area entertainment destinations — like Cedar Point, water parks or sporting venues — which generate money through admissions taxes. • This, then, gives little reason for people to visit Sandusky and stay in a hotel or motel, which means almost no cash via lodging taxes In March, city commissioners did approve a $24.5 million budget but hesitate to spend this full amount because of these issues. So, in an attempt to conserve, they're re-examining all projects planned for this year. Phase 1 represents the initial portion of the cuts. "This is all causing a significant impact on the budget," city manager Eric Wobser said. "We have taken these steps to hold down our expenses so that, when the decline in revenue hits our books, we will be in a stronger position to absorb it." What's up with the unions? Unionized employees haven't yet taken a pay cut, according to city administrators, because Sandusky's budget showed many strengths before the coronavirus impacted local operations. Through the first quarter of 2020, Sandusky's budget outperformed last year's initial three-month period. "They will take more time to make this decision," Wobser said. "They want to see more of the economic impact because we aren't seeing those financial losses yet." Sandusky administrators need the approval of the unions to decrease their salaries, even in emergencies such as this. The Register reached out to city employees labeled as union representatives for additional comments on their stances in regards to this situation.