HESPERIA – Faced with the daunting challenge of complying with increases in the minimum wage and other employee benefit costs (retirement, medial, and workman’s compensation), the General Manager of the Hesperia Recreation and Park District made the difficult announcement to lay off a small number of select positions effective January 20, 2017 in preparation to contract for their duties at a lower cost.
Lindsay Woods, General Manager stated, “Increasing costs have required us to restructure our operational model to increase efficiency and do more with less. It is always upsetting when we lose employees. It is not something that we take lightly, and is done only out of necessity.”
The fiscal analysis shows that the new minimum wage law will increase District employee compensation costs by at least $500,000 over five years as it rises from its current level of $10.50 to $15 per hour. The estimated cost increase is based on only increasing the wages required by the minimum wage law, but could conceivably be higher if positions making more than minimum wage are increased. These calculations do not include an expected cost increase in goods and services.
“These layoffs are heartbreaking, and the last thing we want to do,” said Board President Mike Limbaugh. “But after fiscal analysis, it is the only responsible way to continue the current level of services and our mission while living within our fiscal means. The Board of Directors has a fiscal responsibility to our community and we have to maintain a balanced budget going forward.”
(Hesperia Recreation and Park District news release)
