Franklin brainstorms cost-cutting

Council explores variety of methods to keep budget trim, By Stacy Maldonado Franklin — Unexpected increases in employee medical costs and a possible increase in trash hauling fees are just two reasons why the borough will spend more money than it had planned for this year. The 2010 budget was introduced at approximately $5.6 million. This is an increase of almost $27,000 over the 2009 budget. Approximately $4,378,000 of the budget is raised through taxes. The tax rate is $2.56 per $100 of the assessed value. Houses were recently assessed at an average of $221,000. Keeping it tight To help reduce costs, Franklin has “cut the operating budget every year [close to $100,000 this year] and negotiated better medical costs,” according to Administrator Richard Wolak. “We are paying the bare minimum on all debt services, and have already consolidated on all capital projects.” Earlier in the year Franklin got word of a $155,000 cut in state aid, along with a general loss of about $71,000 in fees, permits, fines and penalties. Recently two police officers have taken a temporary leave of absence and this has increased overtime costs. Chief of Police Joe Kistle agrees this latter charge “does have an impact on the budget.” The council met on Wednesday, April 21, to discuss what steps could be taken to help Franklin get out of the red and reduce spending in future years. “We are looking to not only address this year, but next year too,“ said Wolak. Franklin CFO Sam Rome was in attendance and agreed. “I was scraping the bottom of the barrel to make last payroll ... education was already paid out too.” Possibilities Impose a medical co-pay at 1.5 percent for all employees. “We need to invite the union back to the table and see if they’ll make any concessions,” advised Wolak. The council agreed. Total saved would be $8,257. Freeze the remaining salaries of borough employees, starting July 1 through the end of the year. In essence “they would be reverting to their Dec. 31, 2009 salaries for these last six months,“ said Wolak, for a savings of $31,743. Furlough employees one day per month or: Close Borough Hall one day each month to save an estimated $58,000 Reduce in title or demote personnel Cut full-time positions to part-time Create shared services arrangements Implement a four-day work week, ideas that could save 20 percent in salaries without taking away medical benefits Tough position Councilmembers strongly advised that they can’t just look at the salary line or what an employee earns. “You have to look what that person does [and answer] who will do it now,” said Councilman Tom Kulsar. “Do we have to pay someone else overtime to do it, is it worth it?” Jack Stoll felt strongly about not terminating any positions. Mark Zschack doesn’t want to layoff anyone either, having experienced this himself for 15 months. Gilbert Snyder suggested the possibility of offering retirement. More brainstorming is in the plans.