235 government workers are being furloughed
Broomfield this week announced a two-month furlough of more than 230 city and county employees to help recover money lost because of the novel coronavirus pandemic.
Furloughed employees will work through April 21, with their last paycheck coming May 6. On April 22, the first day of the furlough, they will be eligible to file for unemployment.
Broomfield spokeswoman Carolyn Romero said the furloughs total 235 positions, including fulltime, part-time and temporary employees. None of the people furloughed are from departments providing essential services, such as police and water treatment, she said.
“We took a painful, detailed, methodical look at each position without the names attached to see how each position connected to essential services we offer to the public and made really difficult, devastating decisions,” Romero said Wednesday.
Employees are not being laid off at this time, she said. City officials hope they can be brought back, but right now “so much is unknown,” Romero said.
The decision was made in light of the “dismal revenue and sales tax” coming into the city, Romero said. June 30 is the last day of the furlough and city officials hope to know by June 1 whether employees can be brought back or if the city needs to make more permanent reductions.
Finance Director Brenda Richey estimates Broomfield is looking at an $11.6 million shortfall because of COVID-19 based on revenue and sales tax projections. The furloughs are expected to save about $700,000 by June 30.
“It will help us get in the right direction,” Romero said.
Broomfield averages about 1,000 employees throughout the year. The city and county shuttered multiple buildings and offices starting March 15, including the Community and Senior Center, Paul Derda Recreation Center, Mamie Doud Eisenhower Public Library, Broomfield Auditorium, Broomfield Depot Museum and inventHQ.
When nonessential offices were shuttered, Broomfield officials said employees would continue to be paid for at least four weeks.
Personnel costs were $72.4 million in 2019; Broomfield budgeted $78.1 for 2020 and, accounting for the furlough through June, is projected to spend $74.8 million.
Broomfield has a reserve account, created by the City Council in 2001, that requires Broomfield to maintain 10% of operating expenditures and debt service so essential operations can continue in the event of circumstances impacting city revenues, Richey said. That reserve has been maintained at 16.67% of operating expenditures, even before the coronavirus cropped up. It has sat in reserve in the event that Broomfield cannot cover bills or the economy crashes.
Richey anticipates that reserve, which is about $21.1 million, could cover about two months of city and county operations.
Broomfield did not dip into the reserve fund in 2008 when the recession hit, she said, and currently there is no plan to use that money during this pandemic.