Amador County – Three city officials in Ione have offered to take early retirement, pending a waiving of three months of their previously agreed-to concessions, in a move that could save the city $256,000 annually.
City Clerk Janice Traverso, Building Inspector Don Myshrall and Maintenance Supervisor Steve Younger in a memo last week said they have agreed to opt into the Public Agency Retirement System “early retirement effective Jan. 30, 2012.” They requested that since they have opted for early retirement, “we are asking your consideration to be exempt” from Service Employees International Union concessions, including one furlough day per pay period without pay, and paying the employee portion of retirement set-asides.
They said in the memo: “We feel that because of the short time frame of the early retirement option, by not participating in the SEIU concessions will allow us to be better prepared for our early retirement financially.”
The Ione City Council is slated to consider the request Tuesday. City Manager Jeff Butzlaff in a report to the Council said the concessions, if relieved for the three, would amount to $8,034 by the end of January. He said the “annualized General Fund savings for these three positions would be $256,402” and the “tradeoff” is “therefore considered well worth it to help better ease them across this bridge into early retirement.”
He said it was a “significant favorable impact” and “net savings” to the General Fund, and also to the Wastewater and Gas Tax funds.
The Ione City Council on Tuesday could also consider a report from city attorney James D. Maynard regarding temporary borrowing options. In a Nov. 9 report, he said one option was borrowing on the open market and issuing bonds. Another was to temporarily borrowing from internal city funds.
Maynard noted that “Scott Smith, the city’s bond market advisor has informed city staff that internal borrowing is the most cost-effective choice as the city’s bond market rating is uncertain at best. At worst, the city would not be eligible for temporary revenue anticipation notes.”
Maynard said internal borrowing must follow government code, and needs a four-fifths approval vote by the City Council. The “monies loaned must not impair any future expenditures and obligations of the special fund.”
Maynard said “absent the temporary transfer” of funds, “certain programs or services necessary for the public health, safety, or welfare of the city’s constituents will certainly be further reduced or eliminated.”
Story by Jim Reece This email address is being protected from spambots. You need JavaScript enabled to view it.
