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Glendale issues layoff notices after redevelopment cuts

May 8, 2012 |  8:20 am

The city of Glendale has begun issuing layoff notices to the first of more than two dozen employees expected to be cut from the city's payroll due to the loss of redevelopment revenue.

The employees are split evenly between management and non-management staff and include two planning assistants, an economic development manager, a redevelopment project manager, a neighborhood services field representative and an administrative analyst, city spokesman Tom Lorenz told the Glendale News-Press in an email.

Redevelopment, which was axed in February by a state mandate, paid for $6.6 million worth of staff salaries, benefits, maintenance and operations, according to a city report. Cutting nearly 30 jobs would save the city about $3 million.

Officials expect to reap about $2.5 million in redevelopment revenue next year as the local system is wound down, but that still leaves a $1.1-million deficit.

The Redevelopment Agency used incrementally higher property taxes to help develop businesses, such as the Americana at Brand, and affordable housing.

The loss of redevelopment revenue has also exacerbated the city's General Fund budget shortfall, which is about $15.4 million. That, in addition to financial issues faced by the city's utility, could put roughly 210 employees -- excluding public safety personnel -- on the line.

The layoff notices, which were issued April 30, go into effect June 28.

"Unless there is a job opening in another [department] before the layoff date, those occupying the positions will [be] out of a job," Lorenz said.


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