Henderson plan beats forecasts

Henderson expects to save $15 million over the next five years thanks to an employee buyout program that enticed 57 city workers to give up their jobs.

City officials had hoped to see the buyout offer taken by about 15 percent of the 308 employees who were eligible for the program. Instead, more than 18 percent of eligible workers accepted buyouts during the seven-week program, which ended on Feb. 5.

Each employee will receive two weeks of severance pay for every year they worked for the city. The city expects to recover that money in nine months to a year with what it will save in salaries and benefits.

"It exceeded our expectations," said City Manager Mary Kay Peck. "We have had, as far as I can tell, the most successful public employee buyout program in the state."

And it isn't over yet. The deadline for eligible public safety employees to take the buyout is March 9.

In the meantime, other options are being explored to help Henderson get through a projected shortfall of $53 million, most of it a result of tax revenue declines associated with the ongoing recession.

The shortfall represents about 20 percent of the budget for Nevada's second largest city.

One idea involves a voluntary furlough program under which some city employees could take unpaid days off.

Peck said city staff members are designing the program now and should have a draft to show to the City Council on March 17. It probably will involve a cap on the number of days an employee can take so workers aren't gone too much, she said.

Public safety employees and workers who are eligible for overtime would not be allowed to take furloughs.

"I've actually lived through one of these when I worked in Montana and we had budget problems," Peck said.

Back then, she took several unpaid days off from her county job. Peck said she is perfectly willing to do that again this time around. "I think I would for the good of the organization."

The city also is exploring:

• A temporary suspension of annual step increases for nonunion employees.

• A change in the cap on how much vacation and sick leave employees can accrue.

• A change in city policy that allows employees to earn bonus days for not using all their sick leave.

• Possible changes to cost-of-living raises for union and nonunion employees.

Additionally, department heads have been asked to take a hard look at staffing trends and their processes to see whether changes can be made to reduce overtime.

Asked whether the city will be able to make it through the current fiscal year or the next without having to renegotiate its existing labor agreements, Peck said, "We don't know that one way or another yet."

Contact reporter Henry Brean at hbrean@reviewjournal.com or 702-383-0350.