St. Louis City Treasurer Tishaura Jones said Tuesday dozens of city layoffs could be imminent if Alderman Jeffrey Boyd, 22nd Ward, does not act on a request for a line of credit and refinancing for the St. Louis Parking Division.
“Our office is faced with the choice between continuing to deplete financial reserves or further reduce expenses, including staff furloughs and layoffs. Board Bills 132 and 133 provide the Parking Division the ability to mitigate depletion of unrestricted reserves and reduce expenses at a critical time,” Jones said in a statement.
The St. Louis Parking Commission on Sept. 23 approved those bills, which include a $5-million line of credit to offset deficits caused by the coronavirus pandemic and to refinance $5.4 million in outstanding debt previously issued by the Parking Division, according to a news release.
The Streets, Traffic, and Refuse Committee on Oct. 13 considered both requests, and Jones’ office wrote it was understood that a subsequent meeting would be set to vote on both measures.
Two months later, Jones said, Committee Chair Boyd has yet to set the hearing for a vote on the schedule. Jones said Boyd has continued to request additional information and that her office has complied.
Boyd did not immediately respond to a request for comment.
Jones wrote a letter to the Board of Alderman on Tuesday in support of the bills and noted that if they are not passed in time to fund the upcoming debt service payment on Dec. 15, the money will have to be obtained from somewhere else.
Jones wrote that because of the pandemic, the treasurer’s office previously reduced the current budget by 5%, including a 9% reduction in full-time employees.
“We have subsequently identified another $700,000 in reductions,” she wrote. “Unfortunately, these reductions are not sufficient to offset the decline in parking demand. As a result, we are utilizing approximately $361,000 per month in unrestricted reserves to meet our financial obligations.”
St. Louis Parking Division has experienced a 63% decline in revenue compared to last year, caused by restrictions put in place because of COVID-19. The parking division has three main drivers of revenue: event parking, meters and tickets and garage operations.
“All of this is supposed to be non-political,” she told The St. Louis American. “You know, we have brought refinancing to the board in the past and they have usually passed it with no problem. I don’t know what the difference is this time with what I’m asking.
As for Jones’ plans for next steps, she said it’s really not up to her.
“We are literally at the mercy of the board at this point,” Jones said. “And if we don’t get the authorization and do a line of credit and also refinance debt, we’ll have to continue burning through our reserves and look at other additional cost-cutting measures that include potentially laying off dozens of employees.”
Jones and Boyd have a tumultuous history. Jones has previously said she believes it derives from a personal grudge Boyd holds against her because she has outperformed him in citywide elections for treasurer and mayor.
This month, a judge ruled in favor of Jones in a lawsuit filed by Boyd and other community members that claimed she violated contract laws when she executed a contract with Hudson and Associates LLC of St. Louis to manage parking meter collections, maintenance and the city’s parking violations bureau. The judge also said there was no evidence presented to support this claim.
Jones was re-elected to serve as treasurer in the Nov. 3 election. She announced the next day that she is running to be St. Louis’s next mayor.