Fire Inspector Laid Off as City Struggles With Budget

The city of North Canton has laid off one full-time fire inspector in an effort to deal with its shrinking budget.

The layoff of fire inspector Scott Kelly is effective March 26, City Administrator Mike Grimes said.

Grimes had served as police chief up until his retirement and then appointment as city administrator in 2011. In his time with the city, he's never seen a layoff.

"We've had people terminated and other kinds of things regarding unions," he said. "Mostly people come here, work their whole life here and retire here."

Finance Director Karen Alger had presented a proposed 2013 budget at the Jan. 22 council meeting, and that budget showed the city's estimated spending exceeds its revenue by $3.6 million. And $1.4 of that deficit is in the general fund.

Then, city officials talked about fee increases, cuts in service and layoffs of city employees as the city faces years of growing deficits.

In Kelly's layoff notice, Mayor David Held said, "The City's General Fund balance, which is used to pay salaries, is expected to decrease by 74% during year 2013, and have a negative balance of more than $700,000 in 2014."

Grimes said no more definitive layoffs are planned, but they haven't ruled them out entirely.

He said the city's former administrative services director, Bill Bartos, had left his job with North Canton for a similar position at the city of Canton because of the budget situation and looming layoffs. The city has not filled that position.

"He knew what the situation was going to be, and that the mayor was going to start (layoffs) in our own department," Grimes said.

The city also is dealing with the budget by not filling positions, including a full-time meter reader, a full-time EMS position and two officer positions at the North Canton Police Department. The police department will also see a retirement soon, and Grimes said the city will likely not fill that position.

How the layoff affects the city

Kelly was making $26.20 an hour, or about $54,496 a year as a full-time fire inspector. And, according to Kelly's layoff notice, "the estimated amount of annual saving with respect to salary benefits and other matters associated with one firefighter/EMT/fire inspector position is $78,877."

The city offered Kelly a chance to transfer to a full-time position as a drinking water treatment plant non-certified operator, making less than he is now, but keeping his vacation and sick time in tact and giving him the opportunity to earn overtime pay.

Fire Chief John Bacon said Kelly, who had been serving as a fire inspector and firefighter EMT since he was hired in 2004, may still serve as a part-time firefighter EMT, but Kelly has yet to make that decision.

"He's an excellent employee," Bacon said. "We've had no problems with him at the fire department."

"Over the past couple years, he's helped secure well over a half million in grant money."

When considering the layoff, city officials looked at seniority and not work performance.

So how will the layoff affect the department and the city? 

Bacon said the department can still operate with one fewer fire inspector, although three is ideal. The two remaining inspectors will do fewer education tours and lectures and inspect fewer buildings as a result.

"The thing about fire prevention is you don't know how many untold fires that were prevented by going in and doing the inspections," Bacon said.

"How the city will be affected, only time will tell."

A decrease in the general fund

*Editor's note: The following information is from the Jan. 29 story, "North Canton's 2013 Budget: What's Taking the Biggest Hit?"

The general fund decreased by $1.1 million when looking at 2012 appropriations and 2013 appropriations. It went from $9.1 million in 2012 to $8 million in 2013. 

That has much to do with the inter-fund transfer of the inheritance tax, Alger said. 

She cites Ordinance No. 134-06: "authorize the Director of Finance of the City of North Canton to transfer from the General Fund to the Capital Improvement  Fund any estate tax collections in excess of $300,000, for the purpose of funding infrastructure improvements and equipment purchases."

In 2012, the city transferred $1,542,122 to the Capital Improvement Fund for inheritance tax received in 2011 and only $800,000 will be transferred in 2013 for inheritance tax the city received in 2012. 

And, about $300,000 less will be transfers to fire, EMS and street for general operations.