Loveland to furlough 40 additional workers, reduce unspent budgets

LOVELAND — The city of Loveland will furlough or reduce hours for 40 more employees and seek to cut 10% from every department included in the city’s general fund.

Steve Adams, city manager, released information about the additional reductions Friday afternoon, which affect both part-time and full-time employees. The additional cuts are on top of the 280 furloughs and layoffs announced April 17.

The additional furloughs will be in the city’s Recreation, Cultural Services and Library operations. In addition, directors of all General Fund departments were instructed to submit proposals for 10% cuts in their remaining 2020 budgets.

“We used the word ‘proposals’ purposely so that people don’t think that the cuts will happen tomorrow,” Adams said. He said that furloughs and cuts are for an undetermined amount of time but will continue beyond the May 26 date identified in Gov. Jared Polis’ “safer-at-home” order.

“We’re waiting for the governor to make changes to ‘safer-at-home’ that could affect the city’s theater, museum and recreation center. The time period is open but as we talked about this we hoped that around the first of July” the city could begin to call people back, Adams said.

While specific capital projects were not put on hold with the decisions announced Friday, Adams said he suspects that some departments may propose delays to capital projects because delays in capital may also delay the related operating expenses that are part of the general fund.

Loveland City Council members reviewed the city’s fiscal contingency plan on Tuesday; the plan contains a provision to apply approximately half the General Fund reserves, or $8 million to $10 million, to offset anticipated revenue drops.

The presentation of the contingency plan by Alan Krcmarik, finance director, can be viewed on the city’s broadcast archive website at www.loveland.viewbit.com, and clicking on the May 12 City Council meeting. Select Item 2.2 to view the Finance-COVID 19 Fiscal Contingency Plan.

Adams said the staff will return to the council on June 9 with reports about impacts on programs. They may also talk with the council about “taking a one-year vacation” from some projects in order to save operating expenses in the short term, he said.

 

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