Cash-strapped East Point to try employee furloughs


The Atlanta Journal-Constitution
Published on: 06/13/08

The city of East Point will furlough all city employees —- and possibly lay off some —- to help curb a years-long budget crisis, city officials confirmed Thursday.

Without giving specifics, a news release from City Manager Crandall O. Jones said furloughs would begin July 4.

In an interview, Mayor Joseph L. Macon said all 600 city employees, including firefighters, police officers, City Council members and the mayor himself, would take unpaid leave throughout the next year. It's expected to be taken as one day off of each two-week pay period. The days off will be staggered so that city offices will remain open as usual.

Further, the mayor said "layoffs are also very much part of the plan" to get the south Fulton County city's finances in order. Macon said it had not been determined which jobs might be eliminated.

The mayor said the city manager would present the budget —- and specifics about the furloughs and potential layoffs —- at a City Council meeting Monday night.

Macon said the operating budget for the next fiscal year, which begins July 1, is expected to be $108 million with tax revenues projected at $100 million to $103 million. That leaves a deficit of $5 million to $8 million.

With the exception of this fiscal year, the city has operated in the red every year for at least the past decade —- many years with larger shortfalls than the one predicted next year, the mayor said.

Macon added the city will finish the current fiscal year (2007-08) with a balanced budget.

"The city of East Point has been under a cloud of financial problems for the past 12 to 14 years," City Councilman Clyde Mitchell said. "We're trying to deal with the situation without layoffs, and that will cause some tough decisions to be made."

The city has recently raised property taxes and increased fees for city services, and it cut back on employee pensions and health care reimbursements for city employees, to help balance the budget, Macon said.

Jones, as city manager, has the sole authority over East Point's budget according to the city's charter, and he made the decision to use furloughs to rein in the budget. Jones did not respond to repeated requests for an interview made by phone and in person on Thursday.

East Point, a city of 40,000 residents, is a working-class community along the south MARTA line near Fort McPherson and Lakewood Amphitheatre.

Dennis Hammock, regional director of the International Brotherhood of Police Officers, said the furloughs are a bad idea.

"When you start hitting public safety —- i.e., fire and police —- you start jeopardizing the safety of the citizens," Hammock said. He said East Point police officers were told of the furloughs at roll call Wednesday morning.

Macon said that police officers' and firefighters' schedules would be altered so public safety workers' extra time off would occur during times when the volume of emergency calls is low.

"Public safety is our No. 1 priority," the mayor said.

City Councilman Marcel Reed also does not like the idea.

"Anytime you furlough public safety, there's a potential for a problem," he said. "Criminals want a city to be vulnerable, and that's what this does."

Countered the mayor: "No one wants to do this. But we have got to start clearing up years of financial mistakes and mismanagement."

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BUDGET MEETING

> The East Point City Council will hear details of its budget at 6:30 p.m. Monday at the East Point Law Enforcement Center, 2727 East Point St. (Information: 404-270-7001)

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