City accepting voluntary furloughs, hopes to avoid additional layoffs

Nate Hulings

of the Gateway

Voluntary furloughs are the latest measure the City of Gig Harbor is taking to help fend off declining revenues, a city official said last week.

The voluntary policy was adopted during the June 22 city council meeting. Furloughs, which are days off without pay, help curb expenditures caused by declining revenues, City Administrator Rob Karlinsey said.

One of the main culprits is decreasing sales tax figures.

The city estimated sales tax figures to drop 10 percent this year, but that number is more in the ballpark of 18 percent, Karlinsey said.

“With voluntary furloughs, you have no idea who is going to come forward,” Karlinsey said

He added that the city could initiate mandatory furloughs as early as the end of this year.

The city’s projected 2009 revenue is $1.31 million, nearly 60 percent less than last year. However, the city’s books are balanced for 2009.

So far, the city projects at least a $1.8 million budget gap in 2010.

At the end of the summer and at year’s end, Karlinsey will report to the city council regarding the cost savings and number of voluntary furlough days completed.

Two department heads already have notified Karlinsey that they will volunteer to take a few days off.

The policy went into effect last Tuesday and goes through Dec. 31. The decision is an attempt to avoid further layoffs.

The city finance and safety committee reviewed and recommended the policy. City employee health insurance benefits and leave accruals will not be affected.

Reporter Nate Hulings can be reached at 253-853-9243 or by e-mail at nate.hulings@gateline.com.