Police get retroactive 2 percent raises

City’s bond rating downgraded

City officials and leaders of the Ohio Patrolmen’s Benevolent Association reached an agreement that covers its police patrol officers for raises over three years.

On April 24, City Council’s Finance Committee approved a new contract for its officers to receive retroactive pay increases, covering years between Jan. 1, 2016, and Dec. 31, 2018.

“We have been negotiating with them for some time and we have finally been able to come to a settlement,” Safety Service Director Mary Siwierka said.

The contract entails officers getting a 2 percent base wage increase for each year, according to Finance Director Ted Pileski.

The prior contract expired Dec. 31, 2015, making this new agreement effective the beginning of last year.

The retroactive pay increases will come out of the general fund and the police levy fund, Pileski said.

“Approximately $136,000 from the general fund and approximately $64,000 from the police levy fund will pay for the retroactive pay increases,” he said.

In addition, officers also will see an increase in their clothing allowance.

“They will be going from $925 per year to $1,200 per year for uniforms, which will bump the total cost to about $12,600,” Pileski said.

While the increases may benefit the Police Department, it does not help the city’s financial state, he said.

“The general fund is already in bad shape because of the cuts to local government funding,” Pileski said.

“In 2014, we ended the year with $3 million to carry over, and last year, we ended with about $920,000.

“In the first quarter of 2017, income taxes are down about $900,000 and the police levy fund is down about $200,000.

“And to add to the problem, Riddell will be moving to North Ridgeville in May and the 3M Plant will be closing in August, which is just more revenue lost.”

If the city continues to see this trend, it would have to send a letter to the Lorain County Budget Committee regarding spending and revenue, Pileski said.

With the city’s financial state where it’s currently at, it received a new credit rating from Moody’s Investors Service, which provides credit ratings and research covering debt instruments and securities.

“They downgraded our rating from A1 to A2 with a negative outlook,” Pileski said.

“Basically, this means when the city issues bonds and notes, the cost of interest will be more. It will cost about $50,000 more.”

Any bonds and notes already issued will not be affected by the change in rating, he said.

In other news, Council’s Finance Committee also voted to replace language in Chapter 165 of the city’s codified ordinance, which states nonunion employees have a set minimum number of overtime hours regardless of any additional time worked.

Council will vote May 1 on whether employees who work extra time should receive four hours of pay, even if employees work for only 15 minutes.

“We will pay them for what they actually work,” Pileski said.

“We have been negotiating with them for some time and we have finally been able to come to a settlement.” — Safety Service Director Mary Siwierka