(HAZELWOOD, MO – Apr. 23, 2020) – At the April 22, 2020 Special City Council meeting, Hazelwood city officials approved a plan to respond to the reduction in city revenues due to COVID-19. Due to falling business activity, Hazelwood is expecting a $1.5 million drop in city revenue now through June 30, 2020 and another $4.2 million drop in tax revenue from July 1 through June 30, 2021 for a total of $5.7 million. Hazelwood city services are primarily funded through tax revenue, including sales and income tax.
Beginning Monday April 27, the City of Hazelwood will be implementing a furlough and temporary lay-off plan for many employees. Additionally, the City is suspending new capital project purchases for the remainder of the 2020 fiscal year, which ends June 30, 2020. No new capital purchases will be authorized from now through June 30, 2021 except for debt payments or already approved contracts, and improvements already paid through grant funding such as the Queen Ann Park renovations and Phantom Drive reconstruction.
In response to the COVID-19 economic crisis and drop in city funding, moving forward the City of Hazelwood will:
- Maintain the City’s hiring freeze that is currently in place, except for critical public service/safety positions.
- Suspend capital projects for 2020 and 2021. That means at this time no street and sidewalk repairs; few or no new vehicle purchases; no or little emergency equipment; no building repairs.
Hazelwood had already previously reduced $750,000 in administrative costs and eliminated 11 positions to try to balance the 2020 fiscal year budget. To respond to the COVID-19 economic crisis, Hazelwood will also implement the following:
- Six full-time, 35 part-time, 15 seasonal part-time, and 65 pool part-time employees will be furloughed for a minimum of 10 weeks. These positions could be restored depending on the State and County’s shutdown orders.
- 55 employees will be furloughed one day a week, resulting in a 20% pay cut for a minimum of 10 weeks.
A 10% reduction in pay for public safety employees was proposed, however the City Council requested that those salaries remain at current levels.
Hazelwood city government intends to restore employees to job positions and full-service levels once city revenues resume. It is city officials’ hope that these proposed actions could potentially save more jobs in the long run.
Due to the furloughs, Hazelwood City Hall will be closed every Friday through the end of June, with the option to extend the closure as needed. Currently, City Hall is temporarily closed until May 18 to adhere to St. Louis County’s stay-at-home order.
To stay up-to-date with the latest information on the City’s response to the COVID-19 economic crisis and long-term solutions, please check our website at www.hazelwoodmo.org.
For more information:
Community & Economic Development Coor.