The Free Press, Mankato, MN

Local News

January 7, 2009

Waseca considers early retirements

Packages could save city $171,000 this year

By Brian Ojanpa

WASECA — For several city of Waseca employees, retirements may arrive earlier than anticipated.

In response to anticipated cuts in state funding, the city has opted to offer early retirement packages to eligible employees.

If all accept, the city would save $171,000 this year and $284,000 in 2010.

“A lot of cities are looking at early retirement and other incentives because they have to make cuts, and it’s a lot less painless than cutting jobs. It’s a win-win,” Waseca City Manager Crystal Prentice said.

The City Council approved the plan this week, and it’s unknown how many of the five eligible employees will avail themselves of the offer.

“It’s a nice package,” said engineering technician Tim Brown, who thinks he’ll accept.

Brown, 59, has been with the city 31 years. He said he previously hadn’t given much thought to when he’d retire but now envisions stepping aside by March 31 or sooner.

His job wouldn’t be replaced for at least two years under the plan.

Other positions eligible for the early retirement offer include those of an electric lineperson, a firefighter and two utility department staffers.

To be eligible under the Public Employees Retirement Association Rule of 90, a person’s age plus years of service must equal 90 by April 1.

Waseca’s total cut in state aid is $229,693 — 19 percent less than its scheduled payment of $1.22 million. Additional cuts in Gov. Tim Pawlenty’s 2010-2011 budget are expected to be announced later this month.

Employees who choose the retirement package would be eligible for severance pay equal to 100 percent of accumulated sick leave, and one week of pay for every four years of service to the city.

Ten city of Mankato senior employees have opted for an early retirement incentive, which will produce salary savings of $500,000.

The cuts affect cities statewide and are the result of the governor’s decision to balance the state’s short-term $426 million deficit. His initial round of cuts trimmed out $271 million.

Mankato will lose $776,000 in Local Government Aid, and North Mankato will lose $259,000.

While some cities look for creative ways to make up for the shortfalls, others are taking a prosaic approach.

“We’re not going to run around and scream the sky is falling and its someone else’s fault,” St. Peter City Administrator Todd Prafke said of that municipality’s $180,559 state cut.

Though Prafke lauds other cities for trying to come up with novel ideas to make do with less state aid, he said St. Peter’s approach will be more staid.

“We will continue to be good stewards of the resources that we get. We’re going to look at what our needs are, and prioritize.”

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