FOR IMMEDIATE RELEASE
May 14, 2020
City of Kingston
Enters Phase 2 of Economic Recovery Plan,
Temporary Layoffs
Instituted through July 31
KINGSTON, NY – Mayor Steve Noble has
announced the second phase of the City of Kingston Economic Recovery Plan will
go into effect starting Monday, May 18. Mayor Noble presented details of Phase
2 to the Common Council at its Finance and Audit Committee meeting on Wednesday,
May 13.
Phase 2 of the plan includes temporary
layoffs of 10 part-time and 9 full-time staff through July 31, 2020 across
eight City departments, including the Assessor’s Office, Building Safety, City
Clerk’s Office, Civil Service, Comptroller’s Office, DPW, Parks & Recreation,
and the Waste Water Treatment Plant. Per an agreement with CSEA, impacted
employees will retain their medical and other benefits during the layoff
period. Layoffs will predominantly affect positions whose duties have been curtailed
or restricted as a result of COVID-19.
“We have worked hard over the years to place
the City in a strong fiscal position, which has allowed us to weather the
initial financial impact of this pandemic.” said Mayor Noble. “Now is the time
to make hard decisions to overcome this unprecedented challenge and embark on
our path to economic recovery. To date, we have been able to maintain all
essential City services, but the full extent of the pandemic’s impact has not
yet been realized. It is critical that over the next few months we continue to
exercise strong fiscal oversight and advocate with our federal representatives
for funding for Kingston and its sister cities across the country.”
Due to the necessity for local businesses to
close in compliance with NYS PAUSE and to protect the health and safety of
Kingston residents, the City has collected significantly less sales tax revenue
than budgeted in 2020. The first two sales tax payments received this week are
down 27% (March) and 38% (April) from 2019. Additional income sources such as
investment interest, parking revenue, fees, permits and others will also be
impacted. With available data, the City Comptroller, John Tuey, is now
projecting that the City of Kingston will have revenue decreases between $4,00,000-$6,000,000.
Mayor Noble has already implemented
departmental budget cuts, a hiring freeze, overtime pay reductions, and the
allocation of $1.6 million from the City’s Fund Balance. The temporary layoffs
are expected to save the City approximately $75,000 in payroll expenses. At the
end of July, the Mayor and City Comptroller will have updated data on the
extent of overall revenue losses. If revenues continue to decline and the
federal government does not announce a financial relief package for states and
local governments, the City will need to consider permanent layoffs and
potential service reductions.
“The challenges we are facing, while
unprecedented, are not unique to Kingston,” said Mayor Noble. “I am in regular
contact with municipal leaders across our region to share data and best
practices and advocate for the federal funding we need during this difficult
time.”
Mayor Noble will continue to provide regular
updates to the Common Council and public on the progress of the City’s recovery
efforts.