Fort Worth suburb trying to stay ahead of coronavirus’ economic fallout
Some city employees will see pay cuts and furloughs brought on by the economic fallout from the ongoing coronavirus pandemic, city officials said.
Cliff Blackwell, interim Bedford City manager, said he had to make a tough decision after reviewing the current state of the city’s budget, realizing there would be a shortfall by September.
He did not give an estimate of the shortfall amount because sales tax information from the state is delayed by a couple of months, and Bedford and other cities won’t know the full impact yet.
Blackwell said the city was preparing to bring in $37 million in revenue with about that much in expenses. The city is at the midpoint of its budget year, he said.
The general fund used to pay most employees and other expenses gets 41 percent of its revenue from property taxes and 21 percent from sales taxes, Blackwell said.
“Sales taxes are a factor, but there are other factors as well, such as recreation fees and court fines,” he said.
The Fort Worth Star-Telegram received a copy of an email that Blackwell sent to employees which said that furloughs and pay cuts will begin April 15 through April 29.
“Unfortunately, the City of Bedford can no longer afford to ignore the negative budgetary impact COVID-19 will have on operations in the coming month(s),” Blackwell said in his email.
The email also stated that all part-time employees will be furloughed until further notice and placed on unpaid leave starting April 15.
Other employees who were “sent home to wait” will receive 80 percent of their pay with an option to use paid leave accrual to make up the difference. The same applies for employees working shifted schedules.
Those working out in the field at home or in the office will receive 100 percent of their pay.
Blackwell wrote in the email that the situation will be evaluated every pay period.
“Please know these decisions aren’t everlasting. We are making them one pay period at a time. That is why it is so vitally important to continue the dialogue as often as possible. It is our hope that this pandemic ends soon, and we can all return to life as we know it,” Blackwell wrote.
Mayor Michael Boyter said Bedford had to make difficult decisions.
“It’s a sensitive situation; we’re talking about people’s lives,” he said.
This story was originally published April 8, 2020 at 1:30 PM.