Federal Heights – Hard times have hit this city of 12,000 nestled in the Denver metro area’s northern suburbs.
Federal Heights has seen declining sales-tax revenue over the past four years; budget deficits are projected for this year and next.
On Tuesday night, at the conclusion of a packed meeting, the City Council voted to lay off six employees, eliminate their positions and restructure the city government to accommodate their loss. Among the positions cut were the public-works director and the economic-development director.
“Ladies and gentlemen, tonight sucks,” Mayor Dale Sparks said in opening the meeting. “I don’t know how else to put it.”
Federal Heights, not even 2 square miles in size, has 90 employees, and dozens of them – police officers, firefighters, administrative staffers – in addition to several residents jammed into the council chambers to show their opposition.
“You’re throwing away a tremendous amount of training, dedication and experience,” said Pat Griffith, an investigator and public-education specialist with the fire department who lost his job.
In the end, most council members said they had little choice. In July, the council found out the general fund this year was expected to come up about $500,000 short – no small change when the projected general fund revenues are barely over $7 million. After City Manager Chuck Reid asked employees to find ways to cut costs, the general fund was still expected to be down about $170,000.
Sparks said the city has a tough time competing with growing neighbors Thornton and Westminster, both of which have either opened or are planning to open new big-box retail centers. Sparks said other options, such as raising taxes, weren’t feasible.
“This whole thing is just like a nightmare,” Griffith said. “I think it’s now just starting to set in that it’s come true.”
