PORTSMOUTH
City leaders began laying off 31 employees Tuesday as part of an effort to cut costs and save $3.5 million a year, City Manager Kenneth Chandler said.
The city also eliminated 28 positions that were vacant and created three more.
The layoffs are based on the recommendations of an efficiency study city leaders commissioned early this year and are a result of the city's tough economic times, Chandler said. He would not release a list of positions or a copy of the study, saying that, because their supervisors were out of town, some employees have yet to be notified.
The report was based on 2,300 employees, not including sworn public safety employees, he said.
Initially, Chandler said the study might result in as many as 205 positions being eliminated. He said at the time that the reductions could have saved the city $7.1 million.
On Tuesday he said the city would have to consider additional measures to reach that amount.
The layoffs included three positions in the city's Convention & Visitors Bureau, including its director and assistant director. Employees were also laid off from Portsmouth's Economic Development, Finance, Public Utilities, Marketing and communications departments, Chandler confirmed.
While no sworn public safety officers lost their jobs, two administrative positions were eliminated in the fire department along with three positions in the Police Department, including spokeswoman Ann Hope.
The study results represent the second set of measures Portsmouth has implemented "in an effort to gain fiscal stability and customary service delivery in an ever changing economy," according to a news release from Chandler.
The first steps came earlier this year when the city discovered a potential shortfall of $5.5 million and implemented a hiring freeze, a moratorium on out-of-town travel and more scrutiny of expenses.
The affected employees were given two weeks' notice and severance pay through the end of the year, according to the release.
The three positions that are being created include a citywide public information officer, a plans examiner for the Permits & Inspections Department and a software systems support administrator, Chandler said.
Chandler described the implementation of the report's recommendations as another phase in cost-cutting.
According to a recent report from the city's financial advise r, Portsmouth could face a shortfall of as much as $13 million this fiscal year, which began July 1.
Chandler told council members about the study's recommendations during a closed session Monday night.
Councilman Steve Heretick said he knew a good number of people who lost their jobs and considered them friends.
"This has not been a happy day for any of us," Heretick said.
He singled out in particular the work of employees from the Convention & Visitors Bureau for their expertise and the revenue they brought into the city.
He also said the city manager had advised the council that future efforts to address the projected shortfall could involve offering early retirement to eligible city employees and more layoffs.
Vice Mayor Bill Moody Jr. said the layoffs were driven by the economy.
"It's very sobering that we're to the point where the manager had to do these cuts," Moody said. "We read about it in the paper every day, but it becomes real when it's people you work with every day, when it's people who have been loyal employees to the city of Portsmouth.
"By the same token, we have to balance the budget."
Jen McCaffery, (757) 446-2627, jen.mccaffery@pilotonline.com
Janie Bryant, (757) 446-2453, janie.bryant@pilotonline.com
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Amazed but not suprised at silly comments made here
First, yes it's sad that people are being laid off. The effect on the person and family is profound. At least there will be some help if they are paid until January. Not everybody will be able to find a good job by then, but most will. Just as most of the employees from the Ford plant are working again. It's not the first time, and it won't be the last. Also, you have to understand that the math is not as simple as dividing the amount of money saved by the number of jobs cut, and the result is the average salary. Some of these positions have vehicles, uniforms, or equipment associated with them. And your employer pays part of your insurance and matches you on social security. They also have to pay worker's comp for each employee. If there was a vehicle, it used gasoline, has maintenance, tags, etc. And all city employees have other benefits such as life insurance paid by the city. In other words, these employees didn't likely make $59k at all. The saddest part of it all is how few voters get what's going on, and as long as we have the leadership we do in council, it will continue.
pilotreader1
I offer a constructive way to save money for Portsmouth every chance I get. TAKE THE WELFARE BUDGET BACK TO 33 MILLION WHERE IT WAS A FEW YEARS AGO. If we were able to get by with that kind of a budget a few years ago we can do it now. But our fine mayor and council insist on turning a once great city into gangbanger heaven. When I have to go to the middle school (which was filled to capacity) for a presentation on gang activity in Churchland I know there is not much hope left for Portsmouth.
Get a clue
I cannot believe some of the comments! Do you know how hard it will be for these employees of the tourism office to find comparable jobs in the local area? Saying they should be happy to have their severance pay for three months (free money) is the most ridiculous thing I've ever heard. Hopefully they will have a new job in three months but that is no guarantee. Furthermore the effected employees are losing more than just a job. They are potentially losing retirement benefits, insurance, and place within their industry. Stop the finger pointing and unsubstantiated comments and offer some real suggestions to city council on how money can be saved without cutting positions.
sold down the river
May 14th "The City Council nearly failed to pass a budget Tuesday night after one member argued that it would be balanced on the backs of city employees and their families." That one member was Steve Heretick. Fast forward 5 months and Heretick says some of these people were my friends. Folks you were sold down the river. You have to go so I can build a 25 million dollar courthouse for my judge buddies, and we have to bring in more homeless non tax paying leeches so we can spend 50 million a year on welfare. What is sad besides these people loosing their jobs is we are stuck with Heretick for 4 more years.
Cuity destruction of Tourism Department
As a tourism professional, I am appalled at the recent action to essentially elminate the tourism department, which is regarded as one of the best in the state. Putting it under Parks and Rec. is a disaster waiting the happen. They DO NOT, I repeat, belong together. They have NOTHING, let me repeat NOTHING in common. For starters, Parks and Rec departments deal with taking care of local citizens NOT with bringing in visitors. A massive mistake. Don't the powers have a clue that tourism actually brings money into the community??? Tourism is one of the few city departments which is a money generator. Unfortunately, by the time they discover their massive mistake, it will be too late. The state of Colorado discovered that several years ago when they got rid of their tourism program only to be forced to re-create one after the state coffers suffered a huge budget shortfall due to a huge decline in tourism-generated revenues. Tourists don't just come into a community....it has to be sold. And by the way, I live hundred of miles away from Portsmouth, and I can tell you that the many trips that I have made to your community over the years...none of them, not a single one would have happen
Markg
Have you noticed the sign and ground being worked for the NEW Holiday Inn at 264 and Port Center? It's being built across from WAVY. Just a bug in your ear..
They could use a haircut.
I've been in business long enough to know that there are probably few companies that couldn't shave at least five to ten percent of their employees, without creating any noticeable change in work performance. In fact, efficiency and overall morale would probably increase.
Every company, and I'm sure it also holds true for municipalities, has its share of malingerers, dullards, time wasters, weasels, and cute-but-worthless, or "downright dumb but pet of the boss" employees. In good times, most companies have too many vice-presidents, managers, assistant managers, assistant to the assistant managers, etc. In tough times, it's easy to give those ranks a major haircut, and reduce the fiefdoms.
You see, in business, if you fail, you go bankrupt (except Wall Street). In government, if you fail, you just increase taxes, and blame the other political party. Not much incentive to do anything of substance, is there?
only the first step
You've got it right Jesse Scout. Two houses are being advertised in my neighborhood for 64k and 46k below city assessment. The city budget will increase next year along with welfare. I guess the city assessor is still going to stick to her story that it takes 18 months to 2 years for the lower property values to kick in. I'm hearing thru the grapevine real estate tax will be 2.00 per hundred and personal property tax will be 6.00 per hundred.
We will still pay....
Regardless if we would have elected new members to the council, we would still be in this mess. The longer we keep the majority of them on the council, the more we will be paying. Please vote next time around...
We also need to stop giving away taxes when we have new ventures come into Portsmouth, that's the bottome line. 5 years worth of tax credtis is horrible. So when the big businesses (Wal-Mart, APM terminals, Satrbucks) start paying taxes, do I get 5 years worth of tax-exemption to balance the playing field????? Probably not...
KEWL
The affected employees were given two weeks' notice and severance pay through the end of the year, according to the release.
Time to go Christmas shopping or maybe take a vacation! Three months of FREE money YIPPEE!!!
Don't worry
I am saddened at the loss of jobs and those forced into retirement. Don't worry, we'll have plenty of money when the taxes start rolling in from the upscale subsidized and section housing..oh wait...nevermind. I was born and raised in this city. I have lived here most of my life. I know that the downfall began when a certain contractor started getting fat off the federal handouts for building public housing in Portsmouth many years back. Our council has catered to the no income/low income minions ever since. 45% of the residents support this entire city! Have you heard that the Holiday Inn is closing for a project that may not happen anywhere in the near future, if ever? Unlike the venture next door, the Holiday Inn is actually profitable and paying taxes! This city reminds of the old shantys that existed along 58 with the grand paladium fascias. Council wants the image but does everything to undermine actual growth of Portsmouth.
Put the ducks in a row
I would love to see William Bailey run for office.
My heart goes out to people who lose their jobs...
but what is going on with a city that has 28 vacancies that they do not need to fill to continue their services? If those 28 positions would have never been created, maybe the 31 current employees would not have had to be laid off now? Government, what more can you say?
Tourism and Portsmouth!
Kind of like spraying water on a fire that does not exist!
It's eyewash
I bet if the Johnson's wanted to sell the crab house the city could come up with the money. No amount is off limits for the Portsmouth Partnership and developers projects. Also why cut personnel from an office that brought over 7 million dollars into the city last year? Why not get rid of a couple of code inspectors who ride around in city vehicles and harass as many citizens as possible during their shift by writing minor code infractions. Why not cut some of the millions spent on social services that are turning Portsmouth into a magnet for non tax payers. Talk about a money pit and there it is. These cuts are just eye wash so council can justify raising the tax rate on real estate.
i hope
The powers that be were smart enough to get rid of the hat wearing do nothing friends of the Mayor that run rampant at 801 Court St. My guess is they are still there but some very hard working people who cared were shown the door.
Sad day
I'm so sorry personally for the employees losing jobs. The Tourism office, in particular, does a great job, and to lose it's director is significant, and a major loss for the city.
Cutting the budget
So, if they're cutting the budget and saving the M's of dollars, does that mean they don't need to collect the taxes they planned to use to pay for these folks? That means that now they need to adjust the tax basis to reduce the tax burden on Portsmouth.. hmmmm.. don't think those dems over there will cut the taxes but rather, spend spend spend...
Not Surprised by Layoffs
With the national economy on the decline and not likely to rise anytime soon, I expect layoffs all across the region in the next two years. And the state is about 2 billion underfunded and that is also going to take a toll on local services. While we have been historically insulated by our military services in the region, times are tuff all over American. It seems natural the fallout will reach Hampton Roads in the very near future. Portsmouth is just the first domino to fall in a series…
BTW: If city leaders don't start cutting developer projects, we'll soon see taxes rising all across the region to make up for the falling economy and real estate and sales tax revenue.
Pay now or Pay later.
They better be looking over that budget with a microscope, as should all the other governmental agencies. Gonna need all the money they can get, including higher taxes, to pay for the increased demand for social services. Coming soon to a neighborhood near you.
Save Money for Mayor's Hotel
I think this is an attempt to save money so that the city can get that hotel the mayor wants.
More to come??
I work for a local government on the Peninsula - I wonder if we should be expected to face layoffs as well. The article doesn't specify if they were full time or part time positions that were laid off.
Reduction in Spending for Chesapeake
It should bother every taxpayer in Chesapeake, that we have top level management in City Hall making salaries of 120k and better per year with a population of 250k taxpayers, while these same positions in cities like NYC and L.A. are paying 75k-95k and they have a taxpaying poulation of over 7 million and the positions entail ten times more responsibility. Reduction in spending must take place from the top and work its way down. We also must remember all the financial pitfalls our elected council voted on and hold them accountable in 2010.
research a city budget, and its not that literal
They save money by cutting the vacant positions because the vacant positions are included in their hiring budget, aka a budgeted position, aka they have money in their budget to hire for the position. If they "cut" the vacant spots from their budget, aka substracting the money allotted for the vacant spots looks like more money they have to use on other things or to save on paper....it is saving money essentially. Therefore, there will be no openings because there are no more vacant spots, aka hiring freeze.
Obviously some of you don't get Budgeting 101
When you get approval for your budget, you have "X" amount alloted for positions that you are creating and/or maintainig to run your company/government. Costs savings come when you don't fill the position because you have now released the money you committed for the vacancy as well as all of the other "up front and hidden" costs, recruiting, training, benefits, etc.
Does anyone work for a company that proposes budgets and works within those budgets? Some of these comments are just plain ignorant... "how do you save money on a vacant position?"
Also, if you take your $59K for each employee and subtract out payroll taxes, unemployment insurance, benefit costs, training, recruiting, office space, computers/desks/chairs, uniforms & physicals (if required), administrative costs, and other overhead etc... you end up with about $35K per person. I am sure some people think $16.82 an hour is "living it up" but honestly that figure is lower for some and higher for others.
Where do you work that you don't get this or do you even consider those costs?
No vitriole from me
I am not aiming vitriole at Portsmouth - I live here. I was simply asking how one can cut a VACANT job position - no one is presently doing that job and getting paid - and someone claim that as savings. Why is asking a straightforward question considered "aiming vitriole"? You need to lighten up.
We need the same effort in Suffolk!
We need this same effort in Suffolk, to cut the bloated spending that has been the hallmark of the expansion of Suffolk Government and Spending. With a budget that has grown over over 200% in just the last five years, we need cuts and reductions NOW!
It is so easy for the big spenders in City Hall to agree to commit our hard earned taxes to one and every hairbrained demand after another, because it is someone else's money... Good news for P-Town, but we all need to get back to basic "core governmental services" and to get our taxes out of seculative social spending that expands government at great cost to us all. We could reduce local government spending by more than 10% and not even see an effect on services we really count upon. CUT THE FAT NOW!
Roger A. Leonard, MPA
Suffolk....
Improvements
Where do you see improvements? The way I see it, Portsmouth takes one step forward and two steps back.
This is not good for any of us
When a person is laid off, loses the job, no income coming in, the income is lost, no spending occurs, no rent is paid, this is not good anytime it happens but in these harsh times the list of unemployed is growing and continues to grow, pray that it's not you and yours. and pray also that you have family and friends that may help in your time of need.
$3.5M savings
Further...that savings would include the cost of benefits...which are typically calcuated at 30% on top of the salary. So the positions being eliminated are roughly $40K jobs...nothing to really ooooh and aaaaah about.
Why do you feel it neccesary to direct such vitriole at Portsmouth? No matter what improvements are made, the negativity just keeps piling up!