Glendale is set to offer an early retirement option for more employees beginning next week in an attempt to curb spending at Glendale Water & Power.
The city expects 15 to 20 employees represented by the International Brotherhood of Electrical Workers Local 18 to take the incentive — which was approved this week by the City Council — although 50 are eligible. To tap the incentive, employees must be at least 50 years old and have worked for the city for five years.
At the end of August, 122 City Hall employees left the city as part of the first phase of the retirement program, contributing to between $9 million and $10 million in savings for the city, according to a staff report. The city closed a $15.4-million budget gap, mostly due to the early retirements.
City Hall employees who missed the last round can also apply to retire.
The IBEW was kept out of the original retirement deal.
The incentive includes an annuity of 5% of an employee’s base salary that can be structured in 14 different ways. The city budgeted $1.6 million for the first round of retirees and about $681,000 for this time around, although all the money may not be used, said Finance Director Bob Elliot.
In addition to the new retirements, which will take effect at the end of October, officials also expect to lay off Glendale Water & Power employees to aid the struggling utility. The number of layoffs has yet to be determined.
-- Brittany Levine, Times Community News