Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: FRIDAY, March 8, 1991 TAG: 9103080834
SECTION: VIRGINIA PAGE: A-3 EDITION: EVENING
SOURCE: JOEL TURNER MUNICIPAL WRITER
DATELINE: LENGTH: Medium
City Manager Robert Herbert said today he has also frozen 45 vacant jobs and asked departments to submit alternative budgets for the new fiscal year reflecting 3 and 5 percent cuts to help ease the squeeze.
Under the proposal, the city would provide a voluntary, one-time incentive to employees who are, or will be, eligible to retire by June 30.
The workers are being surveyed to determine their interest in the program. They have have been asked for a preliminary decision by next Friday, although it won't be binding. Herbert said the survey will help determine the projected savings.
The city has about 1,900 employees and 125 would be eligible to retire by the budget year that begins July 1.
"We already knew that the budget picture looked grim based on the budget estimates we received in January," Herbert said. "Now the picture is getting worse, not better."
Revenue estimates have been lowered because the General Assembly made more cuts in state aid and local taxes are declining, he said.
Finance Director Joel Schlanger reduced revenue projections after sales tax collections for the Christmas shopping season dropped.
"Now, more than ever, we need to look at creative solutions to reduce the impact of these reductions," Herbert said.
Under the proposal, retirement benefits could be calculated on the basis of the employee's current salary (rather than a three-year average) or employees could receive a credit for more years of service.
In addition, employees who retire now would receive a monthly supplement until they reach 65, based on their years of service ($10 a month for each year). City officials said the supplement would help cover the cost of medical insurance or other expenses.
Herbert said the city has already frozen 45 vacant jobs, which could save $1.1 million a year.
"Right now we are filling only those positions which are most essential to the basic mission of local government," he said. "Other positions are remaining vacant with current city employees trying to bear the burden left by the vacancies."
Departments have been asked to submit budgets for the new fiscal year reflecting 3 and 5 percent cuts, but no decision has been made on the size of the cuts.
"We want to maintain services as much as possible, but you can't cut 5 percent and expect no impact," Herbert said. Nearly $1 million was cut from the departments in the current year because of the reduction in state aid.
Herbert said earlier the squeeze has been caused mainly by a reduction of more than $3 million in aid because of the state's revenue shortfall.
Herbert will present his budget to City Council April 15.
by CNB