Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: SATURDAY, March 9, 1991 TAG: 9103090391
SECTION: VIRGINIA PAGE: A3 EDITION: METRO
SOURCE: JOEL TURNER MUNICIPAL WRITER
DATELINE: LENGTH: Medium
The plan would not necessarily produce a substantial reduction in the 1,960-employee municipal work force, even though the city is considering retirement offers to 125 workers.
"The goal is not to reduce the work force," City Manager Robert Herbert said Friday. "That is not what is in mind here."
Many older employees who might choose to retire would be replaced because their jobs are needed, especially in public safety. Of the 125 who would be eligible, 48 work in the Fire and Police departments. There are no plans to eliminate those positions, Herbert said.
The employees are being surveyed to determine their interest in the program. They have been asked for a preliminary, non-binding decision by next Friday.
The survey will help determine the projected savings, Herbert said.
"Until we conduct the survey, get the results and talk to the actuary for the retirement system, we won't know what the savings will be," he said.
Herbert said he is considering the plan because of a financial crunch caused by a reduction in state aid and a slumping economy, but has not decided whether to recommend it to City Council.
The proposal should not be confused with an early retirement plan, Herbert said. All of the employees are, or will be, eligible for normal retirement by June 30.
"This program is much more conservative than an early retirement plan, which can be costly," Herbert said.
Under the proposal, the city would provide a voluntary, one-time incentive to the employees to retire now. Retirement benefits could be calculated on the basis of the employee's current salary, rather than a three-year average, or employees could receive 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 of service). City officials said the supplement would help cover the cost of medical insurance or other expenses.
Finance Director Joel Schlanger said letters have been sent to the 125 employees outlining the proposal, and his staff will hold meetings with them next week.
"This would be a purely voluntary program if the city manager decides to go with it and City Council approves," Schlanger said.
Herbert said Friday that he also has frozen 48 vacant jobs and asked departments to submit alternative budgets for the new fiscal year reflecting 3 percent and 5 percent cuts.
"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 local taxes are declining and the General Assembly made more cuts in state aid, he said.
Schlanger reduced revenue projections after sales tax collections for the Christmas season dropped.
If the 48 vacant jobs remained frozen, the city 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," Herbert said. "Other positions are remaining vacant with current city employees trying to bear the burden left by the vacancies.
"We want to maintain services as much as possible, but you can't cut 5 percent and expect no impact," he said. Nearly $1 million was cut from the departments in the current year because of reduced state aid.
Herbert will present his budget to council on April 15.
The city manager has said that residents were "going to have to reduce expectations during this downturn in the state and national economy."
He said it was too early to say where reductions might occur, but indicated that public safety was the only area where cuts won't be considered.
"This community will clearly make it through this difficult time, but it will take sacrifices at all levels," he said.
by CNB