Lynchburg City has furloughed 47 part-time employees to deal with the economic impact from the COVID-19 pandemic. City Manager Bonnie Svercek says the city projects a $5 million shortfall for the rest of the current fiscal year ending June 30th. As a result, she is also proposing cuts that include $1.5 million less to Lynchburg City Schools.
NEWS RELEASE: Today, Friday, April 10, City Manager Bonnie Svrcek announced 47 part-time City employees have been furloughed due to the fiscal impact of the COVID-19 pandemic.
“We are in an unprecedented time, both economically and health-wise. The pandemic has adversely affected local government financially just as it has affected both our local business community and our residents,” said Svrcek. “We are projecting a revenue shortfall for the current fiscal year (ending June 30, 2020) of approximately $5 million.”
To offset the shortfall, in addition to furloughing employees, the City Manager will recommend to City Council during its meeting on Tuesday, April 14 to rescind funds previously appropriated from the current year’s budget. These funds include $338,000 in operating expenses, $382,350 in reserves for contingencies, $500,000 in the Greater Lynchburg Transit Company (GLTC) Reserve Fund, $1.5 million from the Lynchburg City Schools’ budget and $500,000 reserved for the Schools Task Force.
“It is heart breaking to have to make these decisions, especially to have to furlough employees. We have an amazing work family who provides great services to the public every day,” said Svrcek. “I want this community to know we will do our best to continue to provide essential services throughout this crisis. We will also continue to be fiscally responsible and good fiscal stewards.”
“Rebalancing the FY 2021 Proposed Budget (July 1, 2020 – June 30, 2021) is our next task. It is anticipated that revisions will be presented to City Council at their work session on April 28,” Svrcek said.