The city of Vancouver’s financial forecast has darkened over the past month, further pinching hundreds of public employees.
The city is estimating it will lose $45 million from its general fund this year. A month ago, when city officials first saw the coronavirus begin to hobble the local economy, officials projected to lose $30 million.
City Manager Eric Holmes told OPB on Tuesday that 300 non-union workers recently learned they will take a 6% pay cut for the rest of the calendar year. That will come straight from their paychecks or through furlough days.
Holmes said the cuts are “across the board” in all city departments but don’t yet impact the hundreds of city staff who are in a union. Holmes noted the city is “engaged with some of our unions about the potential for similar kinds of cost-containment.”
The pay cuts are the city’s latest moves to absorb the coronavirus’ financial toll. The city’s biggest loses are from sales tax revenues, which it collects from people shopping, dining out and from big-ticket items like new car purchases and construction companies buying materials.
The city is also losing money from people not using city-owned recreation centers. Officials said they also expect people to put off paying utility bills, of which Vancouver gets a piece.
The city has also frozen hiring, stopped paying for trainings and stopped paying 254 part-time workers, The Columbian reported.
