Police union doubts city’s claim
By Jane Beathard
Staff Writer
“Where’s the City of London’s fiscal crisis?”
That’s what a spokesperson for the union that represents the city’s police officers wants to know.
Joe Hegedus of the Ohio Patrolmen’s Benevolent Association (OPBA) doubts claims by administrators and city council of a precarious financial situation. He began representing London’s officers in 1990.
“The city always has a financial crisis,” Hegedus said.
He noted that crisis always seems to appear whenever police contract negotiations are underway. The current OPBA contract ends Dec. 31.
“Every time we go to negotiate, we have a fiscal crisis,” Hegedus said.
In a meeting with The Madison Press last week, Hegedus presented officers’ perspective on the city’s financial crunch. That perspective included an independent review of city books since 2009 and the proposed budget for 2013. The union hired forensic auditors from Sargent & Associates to do the work.
Auditors found year-end balances in the general fund — money left over — increased steadily between 2009 and 2011. It was $1 million in 2009 and $1.1 million in 2010. At the end of 2011, the city had $1.2 million in its general bank account. Those funds will fall to $867,000 at the end of 2012, if income and outgo hold steady for the next six weeks. Original budget projections saw only about half that amount in carryover.
“We acknowledge that the city revenue estimates and adopted budget (for 2013) must be conservative,” Sargent & Associates said. “But, a 19 percent reserve is certainly not …in the danger zone.”
Hegedus believes London is far from an “extremely dire” financial situation, as members of city council and administrators say. Besides, cities should not be in the business of showing a profit.
He said the difference between projections and fiscal reality lies in better-than-expected revenues and less-than-anticipated expenses.
For example, auditors found the police department will likely spend $223,000 less this year than originally projected.
As a result, Hegedus can’t find a good reason for cutting the department’s budget by 15 percent next year. Police chief Dave Wiseman told council on Nov. 1 the planned reductions will mean layoffs and five fewer officers patrolling London streets, impacting public safety.
“No way is it (15 percent) a fair and equitable cut,” Hegedus said. “Council is cutting three times as much from the police budget as other city departments.”
Council will likely vote Thursday on the proposed 2013 budget.
Safety-services director Steve Hume agrees with some Hegedus arguments, but said times and public finances are changing.
He fails to see a correlation between the timing of police contract negotiations and the city’s financial difficulties.
“We had legitimate financial concerns at the last (police contract) negotiation,” Hume said. “But it hasn’t happened each time since 1990.”
He agrees the city has a history of projecting budget deficits that did not occur. But keeping enough money in the bank to cover two months of expenses is just good accounting practice.
He said current council members and administrators have a better understanding of city finances than their historic counterparts. As a result, they show more concern.
Commercial activity, personal property and inheritance taxes are gone in Ohio as a result of changes to the state’s tax code. Under Gov. John Kasich, the State of Ohio reduced funding to local governments in order to balance its own budget. More and more, the city must rely on a 1 percent income tax for operating revenue, Hume said.
If the police department appears to suffer greater loss in the proposed budget, that’s because it has the most to lose.
Forty percent of the general fund budget goes to police operations, Hume said.
In comparison, the fire department absorbs 20 percent; building maintenance gets 5 percent and recreation takes 3.7 percent.
“We’re spending more on police than other departments,” Hume said.
As London learns to rely on income tax, it must remain attractive to new businesses and employers. Good housing, low taxes, safe neighborhoods and good quality of life are more important than ever, he added.
In 2008, council ceased splitting income tax revenues between capital improvements and city operations. All money now goes to operations, leaving nothing for needed repairs to streets, sidewalks and infrastructure. Decreased financial support for parks and recreation will also make London a less-desirable place to live.
Neither Hegedus nor Hume would discuss current police contract negotiations, citing confidentiality restraints.
Hey Jerry, if you knew anything about high school sports you would know students are released at 2:45 and most practice immediately after school. I do believe this is in the middle of the day and a time when a Rec Director should be at work! As for the inappropriate behavior with a student, it surely isn’t the first time and a “busy body” isn’t the one who reports it, it is a parent who is concerned for children under his influence. His asinine behavior has ruined his own reputation. And to hmmmm, YES, YES Eades is a pure idiot! He needs to go!
Mary -
Do you also know that Ryan Ladd helps coach track and cross country….I believe those two sports required…that’s right, RUNNING!
I have read all your other posts. It is complaints like yours and views like yours that will not allow this city to grow. It is a true shame that people like to run their mouths on issues, but offer no VALUABLE solution for the problems we are facing in this town.
Your comment makes no sense. Of course Track and Cross Country require running….. what is your point? So does this mean he is getting paid by the city and the school at the same time? If he is working as the Parks and Rec Director and getting paid for that job, that is what job he should be doing, not his part-time job or volunteer (if he is not being paid by the school) work while on the clock.
The VALUABLE solution WAS offered and implemented by reducing his job to a PART-TIME position. All of you people who are voicing such strong opinions on Ladd’s job should really put your focus toward our community issues, NOT one person’s job. I do not “run my mouth” as you claim. I state the facts as well as my opinion, which I am clearly entitled to. Just because I do not have the same views as you does not mean this city will not grow. Can you honestly say to yourself that the Parks and Rec Director’s job is more important to our community than a police officer? Think about it before you “run YOUR mouth.”
Do you know Ryan’s schedule? Do YOU know when holds the parks and recs events??? Apparently you don’t!!! All programs are run AFTER the 5:00 hour! And on weekends, ALL DAY.
And i have NEVER said the parks and recs director’s job is more important than a police officer’s job. Great job assuming….lol.
I do not know the Parks and Rec Director’s schedule, nor do I have any desire to do so. I am fully aware of when programs are ran, of course they cannot be conducted during the day as participants are in school. Not sure why you are getting so worked up unless you are one of the eades cronies or ladd supporters. Whichever it may be, I will simply chalk this up to you being just another ignorant citizen of London. Oh and for the police officer comment, you CLEARLY come across as supporting a full-time Parks and Rec Director, which again, is CLEARLY not necessary.
We haven’t heard from the City Auditor, the City Tax Director, or the finance Committee of City Council. It would be nice to get some REAL explanations from the elected officials. Oh wait…..There were community forums to explain these things. I wonder who went?
As for the Union Attorney…The Union will ALWAYS ask for more money, and claim that the city can afford bigger raises. The city will ALWAYS plead poverty, otherwise the raises will be astronomical. Negotiating “in good faith” really does apply to both sides. This is why the process includes BINDING arbitration, when an outside person gets to listen to both sides and then rule.
Hey “concerned citizen”. Why is a HS student out during the middle of the day? Did you check her ID? If so tell her to get to school. Regardless of that I don’t think you have a clue of what constitutes “on the clock” for the parks director. When my kids play rec basketball he is up at the gym till at least 9pm at night. All rec sports he run take places in the evening hours and weekends when it comes to practice and games. Is he supposed to work a 16 hour day? If you think his job is pointless that is fine but your comment is completely asinine.
1st you are making an inference that he is being inappropriate with a HS student. No basis in fact and that type of crap ruin’s people lives. Always started by some “concerned” busy body.
2nd the guy work his ass off for the kids of this town. I’m 100% sure he does more work than someone like the Safety director.
If you think the job is pointless that is your right but you should be ashamed of the comments you made here.
Well said Jerry!!!!
Maybe someone can help answer this question. Why is our tax dollars paying for the Rec Director to jog with female high school students while on the clock during the middle of the day? Does anyone else find this an inappropriate use of tax dollars, let alone the appearance it creates?
Keep in mind that the forensic accountant hired by the union is paid to offer a certain opinion. This happens routinely in the legal process, of which collective bargaining agreements are a part. Each side to a legal action, or in this case negotiation, has its “hired gun” to give an “expert” opinion that coincidentally supports its position in the legal proceeding and the argument that side advocates. Remember too that the police officers have received an increase in their base salary every year for the last six years. How many of you London residents have also received an increase in each of the last six years?
I agree on all points !!!!
Maybe the city should bargain “in good faith” like they’re legally obligated to do, instead of misleading the public about their finances. Trying to shake down Unions, instead of bargaining, and taking cops off the beat shows where their priorities are.
Seems to me each time the city has lost a tax levy they suddenly develop a looming financial crisis and take it out on the police and fire in an attempt to make citizens think they made a mistake in their voting choices. This IS a historic marker from the City Council and Mayors.
Seems to me that someone is lying. I am not an advocate for unions; however, this union rep seems to be on to something. The city wants to keep London attractive to prospective business; which is understandable, BUT if you have crime running rampant this is not going to attract home buyers and business. It seems the police force is spread thin with the amount of officers they employ now. Imagine how bad the crime will be if they cut 5 positions. In the past two weeks alone the Rich gas station was robbed and Carter Lumber was broken into…….numerous condos on Keny Blvd. have been broken into (in the past months) and YET Eades and his cronies want to cut the police budget. Thats exactly what I would do; cut those who try to keep the town safe and not cut other city services.
Eades is an idiot and needs to give up being mayor. Elect new blood and maybe JUST maybe London will succeed. While people are voting, get some of the old council members out of there too.
What exactly does the “Safety-services director Steve Hume” do that keeps us safe? We should get rid of his job before an officer’s.