More than a dozen seasoned Sebastian employees have decided to take the City up on its offer and retire early, which will cost the City approximately $250,000 in the short term and save the more than $500,000 a year from now.
Many of the employees who took the buy-out came from the Public Works Department, including positions such as the parks superintendent, director of operations, and several maintenance workers. Other positions include an accounting services manager, administrative assistant, and a senior planner.
“You’re losing a lot of institutional knowledge,” City Manager Joe Griffin said of those who took the voluntary early retirement package.
He said he expected only six or seven employees of the 27 eligible to take the buy-out and that he was surprised to see a Baker’s Dozen participate.
“It’s only natural,” Griffin said of senior employees to opt for the buy-out, which gave them a financial incentive to leave now rather than later. “People aren’t stupid.”
Each of the 13 employees will receive a payout for their sick and vacation pay, $1,000 for each year of continuous service to the City, and nine months of insurance coverage.
“We’re going to be leaner,” Mayor Richard Gillmor said, adding that if everyone who qualified took the buy-out had taken it, “we’d be in a bad position.”
Councilwoman Andrea Coy disagrees. “If everyone had taken it, that would have been OK.”
The largest expenditure in the municipality’s budget is payroll, Coy said, explaining that the ones who took the buy-out are the ones the City is paying the most for.
“They’re certainly not (expendable),” Coy said, but the retirements make room for new people.
“People are always afraid of change,” she added. “But for me, it’s exciting.”
Griffin came up with the idea to implement the program in October, shortly after the City moved into its current fiscal year. He said the move is meant to keep Sebastian’s financial footing solid.
“I’m worried about the next economic downturn,” he said, adding that he believes it’s best to implement the program now, when the City is strong and has adequate reserves. The next downturn, according to Griffin, could come soon, noting it’s been seven years since the last one.
“It’s going to happen,” he said. “We’re due…It’s inevitable.”
“I don’t think anyone has a crystal ball,” Gillmor said of Griffin’s timing for the buy-out. He added that he has enough faith in Griffin to go along with the plan.
As for the early retirement allows for “upward mobility,” Griffin said of those in the affected departments, which he expects could help improve employee morale as well.
Despite the cost savings the City can expect to realize, Griffin said the City could see a drop in some services, some things slipping through the cracks.
If or when that happens, Griffin said the City will evaluate and determine if new hires might be necessary. New hires would presumably come in at a lower salary than that of those who took the retirement package.
“We’ll learn,” he said, adding that the City will just have to manage it.
Most of the employees who took the buy-out left at the beginning of the year. A couple will leave by the end of the month and another will leave in February.
