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Medford tries to close budget gap
The City of
Medford is entering budget season with an estimated $6 million
shortfall, according to preliminary numbers provided to the Medford
City Council by Mayor Michael McGlynn last week.
McGlynn attributed the gap to rising pension costs, $1.6 million in contractual raises, a $2 million increase in healthcare costs, and higher trash expenses. To make matters worse, Medford will likely face a $1.1 million decrease in local aid in fiscal year 2011 – which starts July 1 - according to figures provided by the House Ways and Means committee, McGlynn said.
To close the gap, McGlynn is working with state Representative Paul Donato to offer early retirement incentives to city employees. The program, which already has been approved by Governor Deval Patrick, allows municipalities to offer monetary incentives to employees nearing retirement age rather than laying off younger workers and shouldering unemployment costs.
McGlynn attributed the gap to rising pension costs, $1.6 million in contractual raises, a $2 million increase in healthcare costs, and higher trash expenses. To make matters worse, Medford will likely face a $1.1 million decrease in local aid in fiscal year 2011 – which starts July 1 - according to figures provided by the House Ways and Means committee, McGlynn said.
To close the gap, McGlynn is working with state Representative Paul Donato to offer early retirement incentives to city employees. The program, which already has been approved by Governor Deval Patrick, allows municipalities to offer monetary incentives to employees nearing retirement age rather than laying off younger workers and shouldering unemployment costs.
“The goal is if we can consolidate the number of positions, we don't
have to fire people,” McGlynn said. “I think there are a number of
place where we can consolidate.”
McGlynn also will meet with union heads to request a delay in wage increases for the second straight year. The firefighters union recently agreed to forgo raises for the first 18 months of their contract, setting the stage for similar talks with the city's remaining 17 municipal unions, McGlynn said.
“They get what's going on in the community, that we need some relief,” McGlynn said of the firefighters' union, which ratified the four-year contract on April 15. “I'm going back to the other unions to ask them to do the same.”
McGlynn also renegotiated the city's contract with Waste Management, shaving $13 off the price per ton. A new single-stream recycling program should save the city half a million dollars in its first year of implementation, he said.
According to city records, McGlynn submitted a budget of $130 million for fiscal year 2010, down from $133 million in fiscal year 2009.
McGlynn also will meet with union heads to request a delay in wage increases for the second straight year. The firefighters union recently agreed to forgo raises for the first 18 months of their contract, setting the stage for similar talks with the city's remaining 17 municipal unions, McGlynn said.
“They get what's going on in the community, that we need some relief,” McGlynn said of the firefighters' union, which ratified the four-year contract on April 15. “I'm going back to the other unions to ask them to do the same.”
McGlynn also renegotiated the city's contract with Waste Management, shaving $13 off the price per ton. A new single-stream recycling program should save the city half a million dollars in its first year of implementation, he said.
According to city records, McGlynn submitted a budget of $130 million for fiscal year 2010, down from $133 million in fiscal year 2009.
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