The city of Glenwood Springs announced significant budget cuts Thursday as a result of the financial toll the COVID-19 crisis has taken on the local economy.
According to a news release, the city anticipates up to a 50% reduction in its annual revenue for 2020.
City council unanimously adopted the city’s 2020 budget on Nov. 7 — over two months before the first case of the novel coronavirus was confirmed in the U.S.
Including capital projects, the city’s 2020 budget amounts to approximately $90 million.
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In anticipation of sales tax revenue coming in much lower than projected when the budget was adopted, the city was forced to implement cuts.
According to the release, 179 full-time employees will be furloughed one day per pay period or have their pay reduced by 10%.
Additionally, all part-time employees, paid out of the general fund, will be laid off effective April 17 the release stated.
The city will also stop all of its 401k contributions and put a hold on non-critical projects.
“These cuts are devastating to our employees,” Debra Figueroa, Glenwood Springs city manager, said in the release. “Unfortunately, this drastic reduction is the only way we can remain viable for the long haul and be able to continue to function into the future.”
Figueroa has offered to have her salary reduced by $20,000 or just under 12% according to the release.
Pending council approval, Figueroa’s pay reduction would remain in effect through 2020, unless the city’s financial situation improves the release stated.
“We are all in this together and by making these sacrifices as a team, I hope to maintain all full-time employees and rehire our part-time employees as soon as possible,” Figueroa said.
According to the release, the city will continuously evaluate the financial and personnel impacts of the COVID-19 pandemic as it moves forward.
Additional decisions to either recall staff, extend the furlough or make layoffs will be made by July 1.