Myrtle Beach loses 53 city employees as it faces economic fallout from COVID-19

Fifty-three city employees in Myrtle Beach are leaving while the city continues to face economic struggles from the coronavirus pandemic.

The majority of the departing employees were part of a voluntary severance program the city introduced in June. Those 41 employees will receive their salaries for a quarter of the year and medical coverage through the end of the year, City Manager John Pedersen said at a city workshop meeting Thursday morning.

Another 10 employees were laid off by the city and will receive the same severance package, Pedersen said.

“Their selection for that was not based on performance in any way, shape or form,” Pedersen said.

Two other employees announced their plans to retire before the pandemic began, he said.

The announcement comes on the heels of a “financially dreadful” July and August for the city, Pedersen said, compared to a typical summer when the city is teeming with tourists spending money within city limits.

Cutting the salaries is expected to save the city $1.3 million, Pedersen said. The majority of the salaries come from the city’s general fund, which handles costs related to police, fire, street maintenance and other services, Pedersen told The Sun News.

Pedersen said the city made the decision to reduce the staff out of “sheer necessity.” The city wasn’t in a position to raise taxes this year, he said.

“Every employer in the Grand Strand has faced this as a result of the pandemic,” he said. “It’s not any easier for us than it is for them.”

Reducing costs

Councilman Mike Chestnut commended Pedersen and his staff for making the right decision in a tough situation. He said he has heard concerns about the situation, but costs had to be reduced.

“You can’t continue to go in the hole trying to keep things the same, when the reality is the revenue’s not there,” Chestnut said. “I’m supporting the decision you guys have made to keep our ship running as smoothly as possible.”

Pedersen said the city has been on a “selective hiring freeze” since March, meaning filling positions requires his approval or approval from an assistant city manager. The city has been trying to figure out other ways to keep services running smoothly without hiring new people.

The reduction of employees is meant to help stifle the financial impacts of the pandemic, which is expected to continue for some time. Pedersen acknowledged the concerns among employees.

“I realize there’s some anxiety out there among the workforce, I understand that,” Pedersen said. “This is something we’ve had to do. Nearly every business out there has had to do.”

At the meeting, Pedersen said there aren’t plans to lay off more employees until the city knows how it will use its share of the money from a settlement with Horry County over the use of hospitality fees. Officials will lay out a plan for the settlement money at the workshop meeting Nov. 5.

“It is my hope that that analysis tells us we won’t have to do any more layoffs,” Pedersen said.

This story was originally published October 1, 2020 at 6:24 PM.