City may offer early retirement to more employees

<p>Petaluma City Hall is considering a second round of early retirement incentives that would add some long-term financial obligations but also reduce payroll by $1.5 million a year.</p><!-- Nothing to do. The paragraph has already been output --><p>The City Council on Monday will consider awarding two years of service credit to employees who are at least 50 years old and have worked with the city a minimum of five years.</p><p>Eighty-two of the city's 340 employees would be eligible and informal polling found at least 15 employees are interested in taking it, said Pamala Robbins, human resources director.</p><p>The proposal comes as the city grapples with a projected $1 million budget deficit this year and a $3 million gap in the fiscal year that starts July 1.</p><p>"The clear implication is we will be looking at layoffs going forward," Councilman Mike Healy said Friday. "The point of this would be to reduce the number of those cuts."</p><p>Mayor Pam Torliatt could not be reached for comment Friday.</p><p>Last October, the city made a similar offer that was accepted by 20 employees, including police Chief Steve Hood and five other public safety workers. Seven of the employees had been slated for layoffs, Robbins said.</p><p>The window for accepting the incentive closed Jan. 25.</p><p>Now, eligible employees could have a second chance in a 90-day period stretching from May 25 and August 22.</p><p>If the 15 interested employees take it, the annual increase in pension cost to the city would be about $58,000. If the postions remain vacant, the city could save $1.7 million, minus about $181,000 in vacation payouts, Robbins said.</p><p>Direct savings to the city's $36 million general fund budget would be about $785,000, she said.</p><p>Of the 82 employees who are eligible, 13 work in police or fire service. Of the 15 interested employees, three work at the fire department and the remainder are in community development, water resources, parks and finance.</p><p>Healy said the proposal is an indication of the city's continuing financial stress.</p><p>He called the general fund situation "dire" but said unfunded retirement obligations also will increase from $25 million to $29 million.</p><p>He wasn't sure how he would vote.</p><p>"I need to be convinced the city can really afford this and we're not, in effect, using the Visa to pay off the Master Card," Healy said. "I think we need to be very careful before we do something like this."</p><p>You can reach Staff Writer Paul Payne at 762-7297 or paul.payne@pressdemocrat.com.</p>