By Courtney Anderson
Herald Staff Writer
SHARON
January 04, 2007 02:38 pm
—
Sharon Mayor Bob Lucas says the city needs “a major change in direction” to escape financial woes that have been building over the last three decades.
In a “state of the city” report issued Wednesday Lucas detailed his vision for future change and changes he has already made. It includes bringing in outside experts to help run the city, selling off the city’s sewers, cooperating with other towns, cost cutting and other proposals.
Lucas’ report focuses on recommendations made in an Evans and Associates state grant-funded Early Intervention Program report and he says he will update the community on each issue in July. The statement mentions about $750,000 in savings, according to Lucas.Mayoral goals at a glance
In his "state of the city" report issued Wednesday, Sharon Mayor Bob Lucas lists several goals for the city in the upcoming year. They include:
» Selling the sewer lines to Aqua Pennsylvania.
» Creating a chief financial officer position for the city, which could be part-time, contracted or volunteer. He said he will propose this to council this month.
» Setting up a Mayor's Advisory Council of experienced people from the private sector to provide assistance on financial management, human relations and "strategic matters."
» Negotiating with the Fraternal Order of Police union to save costs on fringe benefits.
» Considering sharing or contracting out police services. He set a deadline of June 30 for this decision.
» Getting the police and American Federation of State, County and Municipal Employees unions to accept a new health care package by June 30.
» Reducing or eliminating health care benefits for all part-time employees. He said he will recommend this by the end of March.
» Continuing discussion about changing the fire department schedule and starting an ambulance service until June. Lucas said he won't seek to change fire service if there is no cost savings realized by that deadline.
» Designing a retiree insurance benefit program the city can afford. Lucas said carriers have been directed to look at policies and he wants new agreements in place by June 30.
» Eliminating several more jobs at a savings of about $72,000 when operational changes allow it. He said all positions in the city will be evaluated in 2007 in the search for cutting costs.
» Updating city computer and phone systems, which are antiquated. Lucas said the city building does not even have voicemail. He said if the changes lead to greater efficiency and the city can eliminate a position because of it, they must. "Any business would do that," he said.
The Evans’ report and the election of a Home Rule Study Commission in Sharon have received “substantial attention,” Lucas said in his statement.
“This attention to the City’s financial condition, its management performance and its governmental structure is badly needed,” Lucas said. “Sharon … has experienced significant economic decline during the last thirty years and needs a major change in direction.”
In issuing the report, Lucas said he wanted to share his perspective with people in Sharon and the Shenango Valley.
“While it took the City of Sharon many years to decline to its current position, it must quickly seek a change in its direction to achieve the benefits its residents demand and deserve,” Lucas wrote.
Lucas addresses 12 areas mentioned in the Early Intervention Report, including bringing in outside experts to help run the city more effectively. Lucas said he has “continually sought professional advice on an informal basis” since taking office.
One way he wants to make that more official is to hire a chief financial officer with the ability to do cost analysis. The position could be contracted, part-time or volunteer, Lucas said, but it would provide another set of eyes on the city’s finances. He said he will propose it to council and will have to see what the city can afford.
Lucas said he wants to appoint an advisory board of about five private citizens to assist him by the end of March. Lucas said he’d be looking for people from Sharon, but he wouldn’t limit himself geographically.
First on his list, Lucas says, is recommending by the end of January that council sell the sewage collection system to Aqua Pennsylvania. The city’s been negotiating with the company for months and there is also a proposal to lease the plant, which needs a $32 million upgrade to meet Environmental Protection Agency standards, to Aqua for 10 years.
Lucas said he expects “several cooperative efforts” with adjoining municipalities to be in place by the end of June. He is discussing sharing services in safety, infrastructure and administration, though he declined to say which communities he has talked to or about what.
“All city operations are open to discussion and proposals for improvement,” Lucas said in his report.
He lists cost-cutting measures made during the year he has been in office, including savings of $110,000 through cutting three jobs.
Lucas also outlines changes in the police department that he says save money, including joining Mercer County Regional Council of Governments’ regional lockup and eliminating funding for the Sharon City School District crossing guard program after the end of this school year.
The city also cut its subsidy to the Shenango Valley Community Library by $130,000. The Early Intervention Report recommended cutting it entirely, but the city put $120,000 in the 2007 budget.
Lucas said he supports the library trustees’ efforts to make the library a separate entity from the city, which controls employees and the building.
“I think that the system as it is set up right now is convoluted,” he said, adding that it could run more efficiently on its own.
A winter schedule in the street department will save about $6,000 and lead to faster snow removal, Lucas said.
The city will also save about $350,000, Lucas said, through a new Health Reimbursement Account hospitalization plan and a wellness program.
Firefighters have already accepted the changes, Lucas said.
As part of the new health care package, Lucas said non-uniform and management employees will pay a monthly premium and higher co-pays and prescription costs. Previously city employees did not pay any part of their insurance.
And all retired employees will be required to certify they have no access to other health coverage each year, Lucas said.
Beginning in September 2006, Lucas said he implemented a monthly cash flow reporting system that will continue into the new year.
“Our major problem is cash flow,” he said. “We need to have a good handle on it.”
Click here to READ THE FULL TEXT: Mayor Lucas's State of the City Report
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Photos
Sharon Mayor Bob Lucus says he is confident that Mercer County’s largest municipality can make it through the year financially, although he acknowledges 2007 won’t be easy.
John Zavinski/Herald file