CITY MANAGER

Civic Center  500 East Third Street  Loveland, Colorado 80537

(970) 962-2303  FAX (970) 962-2900  TDD (970) 962-2620
www.cityofloveland.org

Dear Valued Employee,

I want to make you aware of a series of changes that Loveland is undergoing, and ways they are affecting our City
organization. Fiscal responsibility is a critical component of maintaining a healthy community and requires
continuous monitoring of financial conditions. The latest available data, showing much lower revenue projections
coupled with a recent increase in capital spending on community projects, leads us to undertake steps to better
align our income and spending. In an effort to be prudent and responsive, we are moving forward with immediate
changes in City spending practices. The actions will take effect immediately and may extend into 2019, pending a
yearend reevaluation.

The measures include a hold on the following items and programs:

 Hiring for new positions or backfilling vacancies for any regular benefitted positions, with the exception of
public safety positions.
 One-time monetary bonuses to employees, with an exception for planned compensation increases for
new hires upon their six-month evaluations.
 Reclassifications.
 Out-of-state travel unless required for job-specific credentials or certifications.

The City Manager may grant exceptions for these restrictions in cases of unusual circumstance and demonstrated
need.

Please know that I have thoughtfully considered these options and am working diligently with staff to limit any
further impacts to employees. We know that compensation is a critical driver of employee satisfaction and I want
to assure you that a merit pool of 2.75 percent is planned and will be recommended to City Council for employees
in 2019. The changes above are intended to stabilize our budget while we continue to monitor our fiscal position
and the necessity of the changes.

I recognize that these changes are sudden and understand that you will have questions about the City’s recent
financial outlook. While more information is forthcoming, any immediate questions can be directed to your
Department Director, or Julia Holland at 962-2372, Julia.Holland@cityofloveland.org.

I will also be sending out future updates to keep you informed on this crucial area.

Sincerely,

Stephen C. Adams
City Manager