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Posted on: April 30, 2020

City Council Approves First Phase of the “Rock Solid Together” Financial Recovery Plan

Morro Bay, CA – City Council approved a series of actions at its Tuesday, April 28 special meeting, to address the mounting financial and economic impacts stemming from the COVID-19 pandemic.  Actions were approved to help plug an anticipated revenue loss of up to $3 million in the last quarter of Fiscal Year 2019/2020, and up to $5 million in Fiscal Year 2020/2021.  In addition, Council approved a host of measures to assist the local business community in their recovery efforts.     

Among the actions taken, City Council approved contract concessions (5 percent salary reductions) from the Peace Officers Association, Services Employee International Union (SEIU), and unrepresented management and confidential employees.  The City will continue discussions with the Fire Association as their current contract ends in June 2020.  These actions join the salary reductions already taken by the City Manager and Department Head Team, as well as City Council and Planning Commissioners waiving their stipend for the year, and contract City Attorney reducing his fees.   

“We as City Council are so grateful for the salary reductions taken by our employees,” said Mayor John Headding. “This is a hard time for our staff as they work on the front lines to fight COVID-19 and keep our community safe.  It says a lot about their character as individuals and as a team, to step up and make this financial sacrifice to preserve City services.” 

City Council also approved deferral of rent payments from Waterfront Tidelands Trust lease sites in the Embarcadero for the months of March, April, May and June.  That joins recent measures adopted by Council, including deferring payments of transient occupancy tax from hotels, vacation rentals and recreational vehicle parks for the months of February and March, and waiving late fees for delinquent water and sewer bill payments.    

City Council directed staff to further develop a proposal for a microloan program for local businesses and extending the Utility Discount Program to individuals who lost their job due to COVID-19.  Those and additional measures will be reviewed by Council in May as the City prepares the draft budget for Fiscal Year 2020/2021.   

If you would like more information about this topic, please contact City Manager, Scott Collins at scollins@morrobayca.gov or by phone at 805-772-6206.   

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