The East Ridge City Council at a special called meeting on Thursday night approved cutting 13 positions, while adding seven new ones, including an economic development director, a fleet/bio-diesel director and an executive assistant to new City Manager William Whitson.

The plan includes moving to an automated garbage system that would eliminate eight full-time and four part-time sanitation workers.

Mr. Whitson said garbage service could be cut to once a week with larger garbage cans provided residents.

The city garage is to be closed down with the reduction of four mechanics.

Mr. Whitson said the front desk receptionist will be eliminated and replaced by an automated phone system.

The budget includes lower pay for legal expenses, which cost the city $168,176 in fiscal year 2008. Mr. Whitson was quoted as saying City Attorney John Anderson, who now gets $250 an hour, will be paid less. The budget lists $106,000 for legal expenses.

Mayor Mike Steele said the city also is making plans to pay the Waterhouse Public Relations firm a $6,000 per month retainer ($72,000 for the year) to help raise the city's image.

Albert Waterhouse said he has a year-long campaign ready aimed at boosting the city's businesses and making East Ridge a better place for families to live."

The initial budget called for spending less than the previous year - $9,886,779 down from $10,025,233.

Mr. Whitson said, "The city of East Ridge is currently at a 'rollback' of the existing tax rate by 1.2 cents per $1000 from last year’s budget. My proposal was a net roll back of 2.0 cents. Even with additional changes made by the City Council, we are at a 1.1 cent reduction. This is due to the various ways we found to use our existing resources more efficiently."

Mr. Whitson also called for changes in the East Ridge Court. He said the court clerk should be an elected position under state law and the state Constitution.

He said all other court employees should come under the city manager, and that was approved by the council. The elected clerk would serve a four-year term.

Mr. Whitson said concerning the current court operation headed by elected Judge Arvin Reingold that "the relationship has not been very cooperative."

He said it may be necessary to hire a second judge, or administrative law judge, to hear code enforcement cases so they can be expedited.

The city also plans to outsource the city payroll service.

Mr. Whitson is preparing a plan for a rental regulation inspection program. The total program budget would be $304,080 for fiscal year 2010 and $364,096 the next year.

The city is also expected to change insurance carriers. United Healthcare now charges $1.37 million and is due to rise to $1,566,206. The city is considering offers from CIGNA and BlueCross that would save about $100,000 over the current figure.

There was a proposal to raise the amount employees pay on deductibles from zero to $250. However, Councilman Brent Lambert said employees are not getting a raise and that would amount to a pay cut. So the zero deductible remains.

The insurance policy deductible is $1,000 and the city covers the deductible amount.

Mayor Steele noted that the city last year gave police officers a $1,000 supplement to help retain officers and had planned to do the same for the next two years. But no council member made a motion to do so. It would have cost $40,500.

Mr. Whitson said the community and economic development director will be responsible for pursuing redevelopment opportunities for existing commercial properties and encouraging new businesses to relocate to East Ridge. The position is budgeted at $90,835.

The budget for the new executive assistant to Mr. Whitson, including benefits, was put at $55,000.

The fleet/bio-diesel director budget is at $61,377.

Budgets for other new positions, including benefits, are a street department driver at $47,763, an arena assistant at $46,350 and an animal control officer at $45,385.

Mr. Whitson said the employees who are losing their jobs could apply for the new positions, but must meet the qualifications to be hired.

He said the city's garage is dilapidated and beyond repair. He said city vehicles would be serviced by local garages and the city of Chattanooga.

On the garbage change, he said every citizen would be provided a new large 95-gallon wheeled garbage can.

He said trucks would automatically pick up the cans and eliminate the need for garbage workers to do so. Two new automated garbage trucks will be purchased.

Mr. Whitson said, "The most critical point that the re-organization will actually reduce city budgeted salaries overall by $119,000. The salaries and costs reduced will be $536,085. The salaries and costs added will be $416,671.

"That is why the re-organization is being proposed. It is to make the city more efficient. It is to re-align the organization to accomplish new goals and new directions. In short, we will be able to reduce our costs and accomplish more. We are in a fairly good financial position considering the state of the economy. We are trying to work hard to keep costs reasonable and low as possible. That is good stewardship. That is what we are supposed to be doing."