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City Preparing for Impending Revenue Losses Resulting from COVID-19 Pandemic

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The City of Shelton is preparing for impending revenue losses as a result of the ongoing COVID-19 pandemic.

The City is anticipating revenue reductions in several areas, including sales and use taxes and utility tax payments among other revenues.

The following factors significantly limit our options when developing fiscal policy: 

1. The length of time for the City of Shelton to move through the phases of Governor Inslee’s reopening plan is currently unknown. 
2. Lack of data to project the immediate impact on revenue. 
3. Unknown timeline of economic recovery. 

We will continue to be deliberate and thoughtful in any use of existing fund balances to offset lost revenue.

“We seek solutions that provide long-term benefit, not just temporary fixes, for all residents and businesses in Shelton. Complex issues take a team of people to solve. We are grateful to have both supportive partners and the community behind us. We are committed to remaining transparent and open throughout this process” said City Manager Jeff Niten.   

We are currently working through a planned, conservative expense reduction process to offset the estimated revenue loss. The City has already enacted a hiring freeze, and City staff is only completing essential travel and training.

We have identified and scheduled checkpoints that will allow us to incrementally reduce expenses. This strategy will ensure that the City is making decisions based on the most up-to-date information available. 

June 15 – the City will move to a four-day workweek for all non-represented employees, but City services will remain available at a reduced capacity Monday through Friday from 8:00 a.m. to 5:00 p.m. each day. Employees in each department will stagger days off to ensure we remain available to serve Shelton community members. This schedule will not affect our Police Department or other employees essential to maintain the health, safety, and welfare of our community. Additionally, several vacant positions will remain unfilled and ultimately may be eliminated. 

August 1 – Staffing reductions, if necessary.

October/November development of 2021 Budget – Further staffing reductions and, if necessary, reduction of services currently provided by the city. 

Shelton City Council and staff are working hard to maintain the levels of service residents should expect from their local government and we are committed to providing essential services for our community and living within our means.