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City of Olathe responds to budget impact of COVID-19

Post Date:04/22/2020 4:30 PM

Similar to other state and local governments across the country, the City of Olathe is facing serious economic impacts as a result of the stay-at-home order. While recognizing the seriousness of the financial situation, staff has is working hard to minimize impacts on services and employees.

As you can imagine, the stay-at-home order has had a detrimental impact on the City’s financial situation. The budget challenge we are facing is more significant than we’ve faced in decades. It will likely not only impact the 2020 approved budget, but revenue estimates show it will carry over into the budget process for 2021. It is very important to mention that our revenue estimates are just that, estimates. While we do not know exactly how the pandemic will continue to affect the City’s financial situation going forward, we are doing our best to plan for the future and will adjust as necessary during these unprecedented times.

Due to this budget challenge, we are taking a number of measures to balance our 2020 budget. Those include:

  • A city-wide hiring freeze of both current and future vacant positions
  • A spending cap on non-personnel related expenses
  • Implementation of city-wide furloughs (excluding front-line police officers and firefighters)

Additional information on steps the City is taking is available in the City Manager’s presentation to City Council.

While we do not take these decisions lightly, we feel that this is the best, most responsible decision at this time to continue serving our residents as best we can. Due to this financial challenge, residents may see some impacts to some City services and planned projects. This is in addition to other impacts directly due to the COVID-19 stay-at-home order.

While none of this is something we wanted to do, we will continue striving to provide the highest quality services we possibly can.

Thank you so much for your patience and understanding at this time. It is an honor to serve you as residents of this great community.

Visit OlatheKS.org/Coronavirus for more information about how COVID-19 is impacting the City of Olathe.

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