Anderson City Council to offer early retirement

ANDERSON - The city council on Thursday passed an early retirement option for city employees in an effort to cut $4.5 million out of the budget by 2010.

The option will give city employees who have at least one year of seniority the opportunity to collect $800 per year of employment, as well as pay for half of accrued sick days and all accrued vacation days.

There is no indication how many employees might take advantage of the option, but, in general, cutting 25 employees' salaries could save the city $1 million in its general fund, Deputy Mayor Greg Graham said.

"It's the first step in efforts to reduce 2009 budgets," he said.

The early retirement plan was passed by the City Council on Thursday. Councilman Ollie Dixon was confident the city could use it, along with other steps, to fill the shortfall created by state property tax legislation that reduced the city's revenue.

He said he thought the city could avoid layoffs and maintain public safety if it took advantage of the early retirement plan, funds coming from Hoosier Park, an increased share of food and beverage tax and pay cuts for higher salaried employees.

"I'm in agreement with a voluntary buyout, but have we explored all avenues?" Dixon asked. "If any of (the lower paid workers) got to suffer, then it's time the chief suffered, too."

Graham said the city would start looking hard on how to fix the budget shortfall today, starting with department head reviews.

"Layoffs are certainly possible," he said.

Whether positions vacated by those who opt for early retirement are filled will depend on the necessity of the position.

"The goal is reduction in the number of employees," Graham said. "We won't replace them unless it's necessary."

The city has already cut about $1 million from its budget through decreased spending, he said.

Employees opting for early retirement must notify their department heads by Jan. 15, and their last day will be no later than March 31, or April 21, if they must train a replacement. Police and fire personnel who are part of the DROP program, which provides additional retirement funds, are not eligible.

Councilman Rick Muir said on top of trying to save money, city residents needed to call their legislator in the Statehouse to help with the effects of the property tax legislation.

"Almost every community is doing or having the same discussion we're having," he said. "The Statehouse finished that bill, but I don't think they finished their business last session. The scalpel's going to go so deep it's going to hurt the quality of life.