Title
Resolution Appropriating An Amount Not to Exceed $855,000 from Committed Fund Balance - Budget Savings to Fund the Voluntary Retirement Incentive Program ("VRIP") Payout Incentive of $373,000 and Separation Pay of $482,000
Purpose
PURPOSE/BACKGROUND:
The City Manager has consulted with the City Council prior to and during the development of the fiscal year 2019 budget on the opportunity to offer a voluntary retirement incentive program ("VRIP") for employees eligible for full retirement. The incentive was offered in the hope that salary and fringe benefit cost savings realized from such an offering would assist in balancing the fiscal year 2019 budget.
Discussion:
Over the past several fiscal years, the City of Hampton ("the City") has reorganized departments to streamline and create efficiencies. Although the City ranks as one of - if not - the most efficient governments in Hampton Roads relative to population size, continued efforts are made to identify opportunities to be more efficient.
The fiscal year 2018 VRIP was budgeted to generate $435,944 in recurring savings. This amount would have likely been higher; however, not all of the savings generated by the VRIP was taken due to the public safety promotional process. While only one of the positions vacated by retirement have been slated for elimination, several of the other vacated positions will be downgraded and filled at lower pay rates. Included in the vacated positions are several department heads, including one Assistant City Manager. Although the collective experience and institutional knowledge of these seasoned leaders can not be immediately replaced, taking the proactive step to offer the VRIP and being able to plan for it well in advance, facilitates a smoother transition.
Impact:
Without the recurring savings generated from the VRIP, more significant reductions would have been necessary to balance the fiscal year 2019 budget. The General Fund portion of the incentive payou...
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