Oakridge issues layoff notices due to 'cash flow problem'

OAKRIDGE, Ore. - The City of Oakridge is handing out layoff notices to a quarter of its workforce after finding evidence of missing money.

Seven of the city's 28 employees will receive the layoff notices, although the city hopes to be able to rescind the notices, said Gordon Zimmerman, the city's administrator. The union contract requires the city to give employees 30 days notice of an layoff.

Zimmerman said there is no indication of any wrongdoing, but auditors will be reviewing the city's finances.

Zimmerman said the city discovered a problem on Tuesday after reviewing the city's monthly bank statement: the city didn't have enough money to pay the bills.

"It's a cash flow problem," Zimmerman said. "We're hoping to correct this in the next 30 days."

Zimmmerman said the affected employees are represented by the city's public works and police unions.

The city administrator told KVAL News that he has been trying to contact members of the Oakridge City Council to let them know about the situation.