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Three full-time workers for the city have been laid off to help offset a budget shortfall. It’s the first time in Lakeville’s history that city workers have been laid off.
Officials say the city has downsized its work force by a total of seven employees by not filling vacant positions.
A slow down in construction is partly to blame, with lower revenue from building permits contributing to a $400,000 reduction in revenue.
Lakeville Mayor Holly Dahl says, “Reducing our staffing level is not something that we do lightly or easily.”
An engineering technician, a housing inspector and an administrative assistant in the inspections department have been laid off.
The trend can be seen in towns across the state, with a sagging economy and dwindling tax revenues contributing to some tight budgets for local governments.
Duluth is cutting 165 workers, some full- and some part-time, to help address a $6.5 million budget shortfall.
Winona County is considering going to a four-day work week to save energy and salary costs and St. Francis employees already have been working four-day weeks.
That’s not an option yet in Lakeville, City Administrator Steve Mielke said.
“We’ve talked about it ... but I’m not sure those savings are significant, if there are any,” Mielke said.
Dahl said Lakeville tried to avoid the layoffs by slashing expenses, instituting a hiring freeze and cutting some city projects, but it just wasn’t enough.
“Obviously, we look at many ways to reduce our budget,” Dahl said. “At some point, you can’t avoid layoffs. We hope that our economy turns around.”
