The Columbus Light and Water Board of Trustees had second thoughts about its decision to layoff six workers during a Thursday meeting.
The board voted 3-2 in January to cut six jobs and slow capital expenditures. The move comes in conjunction with an 8-percent water and sewage rate hike that will take effect next month.
Former board chairman Andrew Colom, who stepped down at January’s meeting, voted for the measures, with support from Jimmy Graham and Charles Newell. Board members Brandy Gardner and Michael Tate opposed.
As Thursday’s meeting began, Tate signaled that he wanted the board to reconsider the action.
“I think we should look at it a little bit closer,” he said. “I really want to rescind that–the motion that we approved to do the layoffs.”
The board did not take any action on the matter Thursday, and instead decided to wait until Colom’s successor is named. The city council can appoint a board member on March 1.
CL&W currently has about $3.3 million in reserves, CL&W Chief Financial Officer Mike Bernsen said at January’s meeting.
A consultant predicted the department’s reserves could be at $921,000 by the end of fiscal year 2019, accounting for all needed expenditures, grants and borrowed money, he added.
However, that figure becomes a deficit of -$1.02 million without grants and loan money. Bernsen said that scenario is “much more realistic.”
On Thursday, Tate said he’d wondered since January’s meeting if the board could find cost-cutting alternatives that didn’t involve laying off workers.
“I’ve heard on several occasions that we’ve been in a lot worse positions in the past than we are now and we found a way to weather the storm without layoffs,” he said. “I just want to meet with (CL&W Manager Todd Gale and CFO Mike Bernsen) and all of us to see if there’s something else we can do.”
Tate drew support from Gardner, who said she believed the decision should not have come in the January meeting, when Colom unexpectedly announced his resignation.
“Andrew was on his way out. I don’t feel like he should have been making those types of decisions for this company going forward because he’s not here to deal with it in any manner. I felt like it was a hasty decision on his part and as a board, in retrospect, I don’t think we should have allowed him to make that motion. ”
It may be too late to reconsider the layoffs, however. Gale told the board that four layoffs have already occurred. Of those, he said one former employee has already taken another job, two are on unemployment, and one’s status is unknown.
Gale said he’s counting one worker’s resignation at the end of December and the subsequent elimination of their position as another layoff. Another layoff is pending potential legal matters, he added.
The layoffs will save CL&W about $390,000. That total rises to about $468,000 with the worker who resigned at the end of last year.
When Tate asked what the layoffs will achieve, Gale said they buy CL&W extra time.
“It buys you a year,” Gale said. “Over three years, that’s $1.2 million.”
Still, Tate wondered what long-term good the extra year would do.
“What happens in 2019?” Tate said. “Do we lay off another four? If we’re only buying a year, the cycle is just going to repeat itself.”
Gale said further layoffs shouldn’t be necessary if the department holds to its current capital expenditures with increased revenue from higher rates.
Alex Holloway was formerly a reporter with The Dispatch.
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