By Megan Crepeau and Rebecca HuvalThe Daily Northwestern
The Evanston City Council discussed a proposal Saturday that could save the city money by allowing city employees to retire early.
In the second of several workshops to familiarize the council with the proposed 2007-08 budget, the council also reviewed proposals to cut back staff, outsource health services and consolidate the Human Resources and Facilities Management departments with other departments.
The Early Retirement Incentive would allow employees as young as 50 to retire by buying up to five years of service for a reduced pension. The average employee would pay $3,000 to $5,000 for each year of service, said Judy Witt, director of human resources.
The city has 104 employees eligible for early retirement, 51 of whom showed interest at employee informational meetings, according to city documents. Of those who showed interest, 14 held management positions, including two department heads.
Ald. Steven Bernstein (4th) said he was worried that the high rate of turnover would replace experienced employees with less qualified ones.
In response, City Manager Julia Carroll said there will always be “institutional memory loss” when employees leave, and those retiring early would retire soon anyway.
“It really ties in to our three-year plan of trying to restructure the organization,” Carroll said. “I’m confident we can make the transition work.”
Early retirement would save the city money by paying smaller salaries to less experienced employees. In addition, some positions would be eliminated after employees retired, and the city would no longer have to pay benefits to the long-term employees .
The city also would lay off 26 or 27 employees if the budget is approved in February. Many of those workers are searching for jobs, and a few have already secured new positions.
Ald. Lionel Jean-Baptiste (2nd) asked that the laid-off employees get priority for the vacant positions created by the retirement initiative. Carroll said those employees would naturally get preference because of their experience with the city.
These cutbacks resemble the money-saving strategies of some private businesses, Witt said. Instead of relying on raising property taxes to make money, Carroll said she will try to streamline departments and outsource city services.
The Health and Human Services Department would move many of its services to local hospitals, schools and clinics by July 1.
Jay Terry, the director of the department, said patients directed to hospitals would be encouraged to develop long-term relationships with physicians there. To receive care from hospitals, children would use the state’s All Kids insurance program.
Some aldermen said they were worried that hospitals would not have space to take on the city’s patients.
Carroll assured the council that residents will find care.
“This is not about shutting the door and turning people away,” Carroll said. “The plan is not to abandon any service and not have an alternate in its place.”
Reach Megan Crepeau at [email protected]. Reach Rebecca Huval at [email protected].
