Village To Offer Early Retirement Incentives to 14 Employees

Fourteen village employees are eligible for early retirement incentives as Glenview officials continue to wrestle with a strained budget.

unanimously approved a Voluntary Separation Program (VSP) Tuesday—The 14 employees eligible for this program must decide  if they will participate by Dec. 6.

Only non-union, non-sworn, full-time employees who are eligible for state pensions (i.e. 55 years of age with a minimum of eight years of Illinois Municipal Retirement Fund service credit) will be considered for the program, according to the outlined requirements.

"Due to the economic downturn, the Village continues to face both near and long-term financial challenges," explained a memo to village trustees from Deputy Village Manager Chris Clark and Human Resources Director Al Stonitsch. "Over the last three years, the Village has taken aggressive steps to thoroughly analyze programs and operational costs in order to find areas to reduce expenses."

Figures of how much the village could save through the program weren't immediately available, but officials noted that 65 percent of the village's budget is allocated to personnel expenses.

Village President Kerry Cummings stressed that participation in the VSP is discretionary for employees.

"These are tough economic times with the economic downturn and we have provided a plan for early retirement to try to address the many issues that those employees might face in terms of making a decision in regards to that," she said. 

The program offers three options to employees:

1. One week of pay for each full year of full-time service with the village as of Dec. 1, 2010 with a minimum of five weeks and maximum of 30 weeks; cash equivalent of 24 months of health insurance and the employee may enroll in the village's retiree health insurance plan or COBRA coverage

2. Option 1 plus an additional cash payment equivalent to 12 months of health insurance premiums; employee may still elect COBRA coverage;

3. One week of pay for each full year of full-time service with the village as of Dec. 1, 2010, plus the village will pay 100 percent of employee's health insurance premiums. Under this plan, the IRS would consider insurance payments as income, resulting in a W2 being issued by the village. The employee would decline COBRA coverage.

For more information about each plan and additional details not included here, contact the village at (847) 724-1700.

Budget deficits persist

Trustees also approved a two percent property tax levy increase that will not affect homeowners' tax bills, the village president said.

The increase is attributed to the new library building, Cummings explained, and the operating levy is flat.

"[The increase] is due to the new Equalized Assessment Valuation (EAV)—either new property or improved property is coming on the tax rolls," she said. "So in order to capture that amount, you do raise your levy but it doesn't have an impact on everyone's current tax bills. It just brings those new properties into the taxing."

Ongoing corporate fund revenues for 2011 are expected to be 1.25 percent— equivalent to $650,000—below the 2010 projection, according to a report released by village finance officials. In opposition, expenditures are expected to increase by 3.4 percent (equal to $1.7 million).

While the corporate fund can absorb the projected deficit next year, 2012 will see more dire straits, according to a financial report. Projected deficits are $3.8 million in 2012 and $3.8 million for 2013.

"[The deficits] cause the Corporate Fund Balance to fall below policy levels and must be addressed to ensure the financial stability of the Village," the report said.

The board's next review date is Nov. 22. The last public hearing and final adoption is scheduled for Dec. 7.

Stay tuned to Patch for upcoming coverage.