Port Huron offering city employees voluntary furloughs in wake of COVID-19 – The Times Herald

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MOC Municipal Office Center, February 2020(Photo: Brian Wells/Times Herald)

Port Huron could end its budget year in a deficit June 30, but city staff are being offered voluntary furloughs to help endure the financial impact of the coronavirus.

Our strongest revenue source, local income tax, is expected to lose in excess of $750,000 in the fourth quarter of the fiscal year, City Manager James Freed wrote City Council members in an email Friday night. The citys next first year begins July 1.

We also anticipate state revenue sharing will be significantly reduced, as well, he said. This will put a significant strain on our ability to operate as an organization.

The city first closed in-person services at the Municipal Office Center, events at McMorran Place and programs through the parks and recreation department in mid-March after the states first COVID-19 cases were confirmed. Like most other communities, administrative orders were also preventing water shut-offs if residents were unable to pay utility bills because of the virus.

But this spring, as the city prepares its budget for next year, theres still a lot of unknowns that officials said they cant yet account for.

Freed told officialshis goal was to achieve a 15-percent staff reduction within the next few weeks. The furloughs are something being offered to some employees, including police and fire officials, voluntarily now to provide some more immediate financial relief to city operations," he said.

Port Huron City Manager James Freed discusses measurements being taken by the city to prevent the spread of coronavirus during a media briefing Thursday, March 12, 2020, in the Municipal Office Center in Port Huron.(Photo: Brian Wells/Times Herald)

With the passage of the (federal) CARES Act and the additional level of unemployment benefits, some employees may find this to be a desirable option, he wrote.

Mayor Pauline Repp said furloughs arean option, which also allows employees to continue their health insurance to make sure theyre covered that way, that she hoped would keep Port Huron financially static and prevent layoffs later in 2020.

We dont know how this is going to affect us because we dont know how long its going to be, she said of the COVID pandemic and its response. Right now, if people are voluntarily doing it, it (helps).

On Sunday, Freed said he was already getting a sense that close to 30 or 40 employees may volunteer, adding, Its a significant amount of our employees will be taking advantage of it.

Currently, he said the city has about 230 full-time employees and 440 total with part-time staff. However, with the virus and the affect on operations, there was likely additionally 100 seasonal employees that we will not bring on this year.

Weare greatly reducing city operations for the next 90 to 100 days, Freed said.

A sign telling visitors that the playground is closed hangs on the play structure at Pine Grove Park Tuesday, March 24, 2020, in Port Huron. Based on recommendations from state and local health officials, it was ordered that all playground equipment in the city be closed until further notice to help prevent the spread of coronavirus, effective Monday.(Photo: Brian Wells/Times Herald)

Freed said the citys share of state Act 51 revenues, which are financed through a state gas tax, will also be impacted this year, meaning the citys streets division would be among its dramatic reductions in the upcoming budget.

Last Monday, at the end of a regular council meeting, Freedtold officials putting off things like scheduled capital projects may impact the next budget

Additionally, residents will continue to see a lack of in-person programming through parks and recreation. McMorran, which is managed by parks and rec, and city pools are not expected to open this summer because of social distancing orders.

In a news release, Parks and Rec Director Nancy Winzer said suspending face-to-face programming will also include sports, Camp Palmer, arts and nature classes, and most summer efforts.

Parks and rec facilities have already been closed to residents during the pandemic.

It would sadden us far more if you or your family came to harm due to our lack of action, Winzer said in the release. The Port Huron Recreation Department will, however, do all we can to continue to offer opportunities for families.

These opportunities may look differently than what we have seen in the past but will continue to keep our residents engaged in innovative recreational opportunities at this critical time. These new programs will be announced by the end of May.

Freed said there were also still a lot of uncertainties about city programs past this summer. He added, We dont even know if were going to have hockey this fall.

He said they want to maintain essential, core services but advised residents that this city will not be operating back to normal even as state COVID pandemic precautions begin to relax.

Freed said although furloughs were being offered citywide, parks and rec will be heavily impacted.

It would be silly to keep all these staffers when we cant provide the services, he said.

Repp added, Its not something we want to do, but certainly, its needed because we dont know what the impact is going to be financially for a while yet.

Jackie Smith is the local government reporter for the Times Herald. Have questions or a story idea? Contact her at (810) 989-6270 or jssmith@gannett.com. Follow her on Twitter @Jackie20Smith.

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Port Huron offering city employees voluntary furloughs in wake of COVID-19 - The Times Herald