(Williamsport Sun Gazette)   Three people will lose their city jobs in two weeks - a clerk typist in the police records department and two firefighters.

According to Mayor Gabriel J. Campana, the layoffs are designed to help build up the city's fund balance and protect it from becoming a distressed city like others across the commonwealth.

The initial announcement of the layoffs came in an e-mail Monday afternoon describing them as "cost cutting ... modifications (being) made to protect our senior citizens who are on fixed incomes and citizens ... struggling to make ends meet" in a time of national recession.

In a later telephone interview, Campana expressed concern about the city's ability to deal with financial challenges that await in 2011, among them a projected $2 million or greater increase in annual minimum pension obligations.

Campana said a review of all city operations and assets is being conducted and will continue throughout the year.

He also promised to sell off unnecessary equipment or land "to private enterprise" if possible.

He said the elimination of the three positions will save about $103,000 in fire department salaries and benefits and $28,000 in total costs at the Bureau of Police "without curtailing services or (the) safety to our citizens."

However, the mayor acknowledged there will be costs to the city for unemployment compensation benefits due the three employees after they are laid off and acknowledged he does not yet have a calculation of how much those costs will reduce the $131,000 saved in salary and health insurance.

City Council President J. Marlyne Whaley was not impressed with the logic of the layoffs the mayor announced.

"They're not going to save a dime," she predicted.

She said council members have been trying to get Campana to initiate long-range financial planning for two years without success.

She also suggested elimination of the two fire positions could be taken as payback for the fire union's refusal to accept health insurance coverage concessions at budget time.

During the budget process, the mayor threatened to eliminate three fire positions if the union did not agree to the changes in its contract.

Also, according to Whaley, the area of the Bureau of Police where cuts would have the most impact on the city's bottom line is not in its records department where a clerk typist's salary and benefits are far below those of the average police officer.

Whaley said she asked both the mayor and City Administrator William Nichols if they believed in the budget before it was passed with a $104,000 fund balance.

"They both told me that it was doable," she recalled, "and that they believed in the budget."

Councilman Jonathan Williamson predicted "minimal savings" from the cuts "after unemployment costs."

"He's not financial planning," he added, "he is flying by the seat of his pants."

Councilwoman Gerry Fausnaught said she was "surprised" but waiting to hear the public's reaction.

"Does the amount we save make up for the concerns of understaffing a fire company?" she asked.