Early Retirement Offer for City Workers OKd

In an attempt to trim the city’s payroll by 14% by June, the City Council has voted to amend the retirement benefits package offered to city employees to entice employees to retire early. They also voted to hire a financial advisor.

The new retirement package would allow employees to add 2% of their total salary for each year they work to their total retirement package at age 55. Under the current system, employees must be 60 years old to apply that method.

City Manager Mitch Lansdell said the city is facing a $4.7-million deficit in its general fund. He said city officials want to close the gap before June so that the city will have a balanced budget for the 1998-99 fiscal year, which begins July 1, and a $1-million reserve.

Lansdell said that without making any changes, the city will slip $2.8 million further into debt. He said city officials are negotiating pay cuts with firefighters, police officers and city employees, but he hopes that changes to the early retirement benefits will alleviate some of the financial pressures on the city.