May 15, 2020 Chris Dugovich President/Executive Director Washington State Council of County and City Employees AFSCME, AFL-CIO Dear Mr. Dugovich: I appreciate the concern raised for members of the AFSCME union. Let me assure you that I share that concern. The layoffs, furloughs, elimination of positions and other budget measures the City has had to take in response to Everett’s financial crisis have been difficult and painful for our employees, our residents, and me personally. I do feel that I need to correct some misstatements and false assumptions in your letter to me, as well as provide clarity regarding where the City is with its budget. First, COVID-19 is not being used as cover. The City has faced a daunting structural deficit for well over a decade, created by the 1% limit in property tax. Stabilizing city finances has been one of my top priorities since taking office, and I’ve had to make significant cuts across all city departments: • • Since 2018 we have eliminated more than $7.6 million from our general government budget. At the start of this year, we still faced a $12.9 million gap to close in the 2021 budget. Then, COVID-19 hit this region. In addition to the illness and tragic loss of life, COVID-19 is having a devastating impact on our already serious financial situation. Preliminary estimates indicate that the City could lose more than $14 million in revenue this year, and there is every indication that the economy will continue to struggle for the next couple of years. Office of the Mayor CASSIE FRANKLIN 2930 Wetmore Ave., Ste. 10-A Everett, WA 98201 425.257.7115 425.257.8729 fax everettwa.gov In the early stages of COVID-19, we initially placed employees that were not able to work on paid administrative leave, spending approximately $569,323. Given the consequences of a near complete shutdown of the economy, and the inevitability that this could last for many months, continuing this expense was simply not sustainable. It was absolutely necessary for the City to take immediate action to address this unexpected and sudden loss of revenue. To delay would have been irresponsible. Second, your comment that the public safety budget did not experience comparable cuts fails to acknowledge the fundamental differences between public safety services and services provided by departments like Parks, Senior Center, Streets and the Library. The City cannot stop providing police and fire protection. The City can, however, suspend discretionary programs and reduce the budget shortfall without endangering public safety. Moreover, many of the services associated with furloughs throughout the City are not currently allowed under the governor’s stay at home order. I would also point out that while we tried not to reduce patrol officers or firefighters, we did in fact temporarily reduce personnel in the police department. Everett Police Department estimates roughly $1 million in reductions through 2021 via eliminated positions and furloughs, and deferring equipment purchases. Fire likewise has made a number of reductions over the past two years. It’s also important to note that twenty ATU employees were placed on furlough and one ATU employee was laid off. In addition, just under $2.4 million was cut through the elimination of appointive employees. Your fourth paragraph asserts that I stated “furloughs were voluntary,” which is inaccurate. I have never stated that furloughs were voluntary. I would encourage you to review the April 22, 2020 City Council meeting, archived on the City’s website, to confirm my comments regarding furloughs. By furloughing employees where possible, rather than laying them off, we hope to be able to bring them back more easily if and when circumstances allow. Furloughs also allow employees to retain their health benefits. We worked with the union to allow employees with the most seniority to exercise their rights to not be placed on furlough, but in many cases, those employees chose to not exercise that right. We also had employees request to be placed on furlough. Lastly, Everett is not alone in this situation. A number of other jurisdictions, such as Issaquah, Tacoma, and Tukwila, have implemented furloughs, pay cuts, and layoffs, or are considering doing so. Everett acted earlier and more decisively than many others, which as I noted above, was the most responsible course of action. I would also point out that Everett employs more people than other cities our size because, unlike our peers, Everett is a full-service City. We have our own parks, fire department, libraries, utility and transit agency -- services that are provided by separate agencies or regionally in most other cities. In summary, the City’s budget has been crippled by COVID-19 and we have taken the painful steps necessary to keep the City solvent, as expected by our taxpayers and required by law. I hope that your members will understand this and that we can continue our long-standing, cooperative relationship. Sincerely, Cassie Franklin, Everett Mayor Page 2 of 2