The Milan News-Leader
A Heritage Newspaper
Weekly Publication
Council approves early out
Retirements expected to save the city some $100,000
By Brian Cox, Staff Writer
PUBLISHED: January 25, 2007
The Milan City Council approved a plan Monday that would allow three city employees to retire early after 20 years with the city.
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The move is expected to save Milan about $100,000, said City Administrator Dan Bishop.
Eligible to retire under the plan are the deputy city clerk, the Department of Public Works foreman and the wastewater treatment plant foreman, who was eligible to retire before the adopted proposal.
The three employees are members of AFSCME Local 3052, which approved the plan Jan. 10.
"Due to financial difficulties, the city is looking for ways to reduce personnel costs," Bishop wrote in a memo to the City Council seeking approval of the proposal.
Trustees approved the plan with some regret, praising the service the employees have provided over the years.
"This is a necessity," said council member Mike Armitage. "It isn't something we want to do, but it's part of our re-organization. It's a decision we had to make."
The city over the past few months has looked in every corner to cut more than $600,000 from its budget to make a bond payment in June of about $900,000 on the wastewater treatment plant and to secure funding for another payment next year.
In addition to cutting two positions, putting city property up for sale, and trimming some $400,000 from the budget, the City Council asked Bishop to pursue early-retirement plans with union leaders.
In December, the council approved an early retirement offer for eight members of AFSCME Local 369 that was expected to save the city about $200,000.
City employees have traditionally been able to retire with benefits after 30 years of service or at the age of 55 after 25 years.
Deputy City Clerk Candy Hines is expected to be rehired as a part-time employee to train her replacement, Bishop said. While there are no plans to replace the DPW foreman, the wastewater treatment plan operator position will have to be filled "in some fashion" because a state-licensed operator is required to oversee and sign paperwork for the plant. Bishop said the position might be contracted out.
The three employees have between Feb. 1 and March 31 to accept the city's early retirement offer.
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