Arroyo Grande to lay off staff, cut City Hail operations

Faced with a budget gap of nearly $1 million, the city of Arroyo Grande is laying off staffers and reducing the hours of operation at City Hall.

Arroyo Grande has a projected budget gap of $912,000 next year, according to City Manager Jim Bergman. Likewise, the city could face a $3.4 million shortfall over the next decade.

The budget gap stems from revenue sources that are not meeting projected amounts, as well as escalating pension costs, according to city staff. Bergman said it is not a mismanagement issue.

In response to the shortfall, the city of Arroyo Grande is cutting nine full-time positions. The city incentivized nine employees to take an early retirement and another two were laid off.

Starting next week, Arroyo Grande will close City Hall on Fridays.

Additionally, the city is increasing fees for programs part of the Community Development Department and Recreation Department. Those hikes include increases to sports fees.