Council approves early retirement incentive plan

Published 10:27 pm Tuesday, February 26, 2019

Troy will be offering six unclassified city employees an opportunity to retire early with benefits to both the city and the employee.

The retirement incentives package would allow unclassified employees to take an early retirement and keep their city health insurance paid for as well as remaining employed with the city in another capacity with a salary of under $31,000.

“… the City Council finds that since in general employees in the unclassified service of the City receive higher salaries and benefits greater than other employees, offering an expedited retirement program for unclassified employees will save the City thousands of dollars in salaries and benefits which in turn will benefit the City and the public …” the ordinance reads.

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The council unanimously approved the ordinance Tuesday.

“A few of (the eligible employees) are interested in this, so I’ll begin further discussions with them,” Reeves told the council.

The ordinance outlines the incentives for the employees but reserves the negotiating authority for the mayor.

“… the employee may be entitled to receive: (i) payment for annual leave which has accrued pursuant to the city’s policies; and/or (ii) sick leave which has accrued under applicable City policies; and/or (iii) entitlement to such other payment or concessions which in the determination of the Mayor will save the City money,” the ordinance states.

“The Mayor is authorized to negotiate with the eligible employee and establish by agreement with the eligible employee any payment/compensation method …”

Unclassified employees include positions appointed by the mayor or council, which include the clerk, police chief, fire chief and department heads.”

The council also approved the granting of 10 percent reimbursement up to $100,000 for capital investment planned by Cox Container.

“They’ll have a new building equipment and line,” Reeves said. “This will create 19 new jobs and additional utility revenue.”

The council also approved a $145,945 contract with CDG engineering for its services relating to the construction of an access road at Kimber Manufacturing.

Reeves said the road will be important to direct traffic off of U.S. Highway 231 and direct employees that need to turn left onto the highway to traffic lights.

The council approved the purchase of a new baler for the Environmental Services Department for approximately $78,000, which will be completely reimbursed by the Alabama Department of Environmental Management.

Upon recommendation from bond rating agencies, the council voted to charge an interdepartmental rate of 5 percent on transfers from the city’s utility fund to the general fund.

Reeves said there are no payment changes related to the move; instead, the procedure is merely being renamed for clarification to the agencies. Because most cities and utility departments are separated, they pay fees and taxes. The city’s “interdepartmental charges” reflect that money since the city and utilities department are both part of the City of Troy.

The city council will meet again on Tuesday, March 12 at Troy City Hall.

The executive committee will meet upstairs at 4 p.m. and the council will convene downstairs at 5 p.m. in the City Council Chambers.