NORFOLK, Va. (WAVY) — Citing COVID-19-related budget shortfalls, the City of Norfolk is laying off 57 people by the end of the year.
A spokeswoman for the city said the workers impacted by the layoffs will end their employment Dec 31.
“This a very difficult decision prior to the holiday,” city spokeswoman Lori Crouch said.
Crouch said the employees come from several departments, however 10 On Your Side was contacted by several in Parks and Recreation who were affected.
When City Council passed its $886-million fiscal year 2020-21 budget in May, they did so forecasting a $40 million shortfall due to COVID-19.
They approved only opening five of the city’s 18 recreation centers to continue to save cash. Similarly, only three anchor libraries opened.
Crouch said the 57 people are part of a group of 78 full-time employees that were furloughed across several departments on July 1. That furlough went through Dec. 31.
“I was optimistic and I was hopeful that there was some way that I was going to keep my job,” said Lavonne Pledger, who was a recreation specialist at the Tarrallton Community Center. “I love my job. I love what I did.”
Pledger, who has a small fitness business and has long been an outspoken critic of the city’s plan to redevelop public housing, said he was hoping to use this job to buy his own home outside of the St. Paul’s community.
“I can’t buy a house without a job,” Pledger said.
Bringing back furloughed employees has been an ongoing discussion for City Council since the pandemic began.
The city previously furloughed 550 part-time workers in late March. The furlough at that time was an operational decision based on social distancing requirements under Virginia Gov. Ralph Northam’s stay-at-home order, but also helped the city prepare for coming revenue hits.
Ultimately, the city ended FY2020 with a $3.6-million surplus.
City Manager Chip Filer brought forward a proposal to put $3.3 million into the unassigned general fund reserve and the remaining $300,000 into a risk management fund.
With employees collecting unemployment and city services shuttered, that idea didn’t sit well with all council members.
“I just want to remind everybody, that this money is not our money, it is the taxpayers’ dollars,” said Councilman Tommy Smigiel at a budget workshop back in November. “And $3.6 million is equivalent to 2 cents of our taxes … our citizens are paying for something that they can’t utilize … I feel like the money has to go back to our citizens.”
The city also has a fund known as a “Economic Downturn Reserve” with $5 million in it that has gone untouched.
“When we are look at this economic downturn reserve being untouched in ’20 and ’21, it makes me question why we continue to operate with such reduced capacity, with amenities our citizens really want,” said Councilwoman Andria McClellan
Norfolk Mayor Kenny Alexander had this reminder to the city manager and his team: While cost-cutting measures they approved were meant to keep the city afloat during turbulent economic times, “the actions that we took, really impacted people. And we would just like to revisit those actions.
While Filer said he and his team could look to put some of the money back into public improvement projects, such as roadway maintenance, the money can’t go toward keeping jobs.
“I cannot entertain any conversations bringing furloughed employees back with this money I mean we can’t do that cause that’s ongoing expenses,” Filer said, meaning if he used the money for employee salaries this year, he’d have to find another pot of money to pay for it next year.
Vice Mayor Martin Thomas also recommended against using the economic reserve as it could affect the city’s bond rating. Meaning it would cost the city more to borrow money for big projects.
Still, the 57 laid-off employees will get a one-time payout of unused leave as well as a severance payment prior to the holiday. Crouch said the severance payments will be between $2,500 to more than $20,000, depending on the employees’ leave balance and length of employment.
They’ll also be given first priority if vacancies open up if they’re qualified.