BREA : Early Retirements Help City Trim Costs

As part of an effort to avoid layoffs at City Hall, the City Council has approved a measure encouraging employees to take early retirement. So far, five employees have accepted the offer, which boosts their retirement pay by giving them credit for two extra years of service.

Brea will make contributions to the California Public Employees’ Retirement System for the next two years on behalf of the retirees. The city will save money, however, because there will be five fewer salaries to pay.

“Economically, it’s a win-win,” Assistant City Manager Tim O’Donnell said.

The early retirement plan is part of a “rightsizing” strategy to cut municipal costs in Brea, while maintaining police, fire and maintenance services at their current levels.

For the past three years, the city has been scrambling to make up for $6.3 million in state funding cuts. And city officials are worried that the state will make additional cuts now that the November election is over.

“There is still a serious budget problem at the state level,” O’Donnell said, “and we’re watching it very closely.”

Brea is operating under a general fund budget of $27.2 million for the 1994-95 fiscal year. To balance the budget, council members approved a series of restructuring moves that saved the city $2 million.

The savings were primarily achieved by eliminating 32 vacant or soon-to-be vacant positions at City Hall, contracting out certain services, recruiting volunteers to help at the police and fire departments, and using technology to enhance productivity.