Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: SATURDAY, February 9, 1991 TAG: 9102090461
SECTION: VIRGINIA PAGE: A-3 EDITION: METRO
SOURCE: JOEL TURNER MUNICIPAL WRITER
DATELINE: LENGTH: Medium
If the city is forced to trim its 1,935-member work force because of tight finances, early retirements could become an alternative to layoffs.
City Manager Robert Herbert said Friday it's too early to say whether an early-retirement plan will be considered or even needed.
"It is only one of a half-dozen options that the budget team has developed" if reducing costs becomes necessary, he said.
Herbert said he won't know whether any of the options will be considered until the General Assembly completes action on state budget cuts and city financial officials update revenue estimates for the next fiscal year.
"Early retirement would be triggered only by the need to reduce the work force," Herbert said. "It is among the alternatives the budget staff has put before me, but I don't know if it will be seriously considered. It may or may not be needed."
Under the city retirement system, workers can retire at age 55 with 30 years of service. Police officers and firefighters can retire at 50 if they have 25 years of service.
The city apparently could entice some workers to retire early if it changed the ages or years of service needed to qualify for a pension.
Herbert asked city budget officials to develop the cost-cutting alternatives so he would be prepared if state aid is reduced by more than anticipated or if tax revenues decrease because of a worsening economy.
Herbert said he does not want to "unduly alarm" city employees by raising the prospect of an early retirement plan. He said he has told them they probably won't get a pay raise in the next fiscal year, however, but that he will try to protect their jobs.
Herbert earlier had said that the financial squeeze has been caused mainly by a projected reduction of $3.1 million in state aid during fiscal years 1990-92. He said that includes a $1.75 million cut in school funds and almost a $1.4 million reduction in the services under his supervision.
Because of less state aid and unusual economic conditions, the city budget might go down in the next fiscal year, Herbert said. Based on preliminary revenue projections, the budget could decrease by nearly $900,000.
Herbert has warned that the extraordinary budget situation could mean:
Schools might have to operate with nearly $1 million less money than they did this year.
No pay raises would be provided to school and municipal workers.
Municipal services might have to be reduced. No new programs could be funded without cuts in existing programs.
by CNB