CASTLE ROCK — The town has laid off six people, set a pay freeze for 2010 and mandated three furlough days this year in an effort to make up a budget shortfall due to the tough economic times.
“This is hard,” said Fritz Sprague, deputy town manager. “The six people that were laid off were teammates with town of Castle Rock.”
It was the third time this year the town has had to make cuts. The latest round will save Castle Rock $1.6 million for a total savings this year of $7.7 million.
Castle Rock finance director Charles Montoya said low sales-tax revenue (3 percent less than forecast) and a decline in new housing construction are the reasons for the budget shortfall.
The town had projected up to 300 homes would be built this year. Now that number is expected to be about 160, he said.
“We’re starting to feel it with the longevity of the recession,” Montoya said.
Of the six employees who were laid off, four were with the development-services department. That made the most sense, officials said, because construction is down across the board. A community-relations assistant and a records technician also received pink slips.
Sprague said those employees were given a month’s pay in severance and will keep their benefits through June.
No police officers or other emergency personnel were laid off, and they won’t take furlough days, either, Sprague said. But they will see a reduction in pay equivalent to the three furlough days.
“It’s only fair,” Sprague said.
Castle Rock has eliminated 38 positions since 2007, or about 11 percent of the workforce. Officials do not think those positions will be filled until the town recovers completely from the recession — if at all.
The furlough days, which will save the town about $300,000, will all be around holidays to minimize the impact on residents: the Friday before Labor Day; the days after Thanksgiving and Christmas Eve.
Carlos Illescas: 303-954-1175 or cillescas@denverpost.com
