Rohnert Park offers workers retirement incentives

Rohnert Park is banking on the promise of "golden handshakes" for some of its employees as it negotiates contracts to help balance its 2009-2010 budget.

The proposed budget is estimated to be $26.4 million, $5.1 million less than the current budget after the City Council ordered deep cuts in police, fire and other city services.

Police and fire are the largest part of the city's general fund and are taking the biggest hit, $3.5 million.

Sandy Lipitz, the city's finance director, said there are still some uncertainties, however.

"We are still in union negotiations. We don't see the salary and benefit part of the budget yet," Lipitz said. "We are also offering a golden handshake. The window closes Aug. 27."

The "golden handshake," which is being offered to encourage some employees to retire, gives employees an additional two years of service credit.

In a poll of the city's 177 workers, 21 indicated they would take the offer, which would cost the city $109,000 a year over 20 years, but save $2.1 million a year in salaries.

The proposal calls for laying off 31 employees, including 17 in public safety and 14 in the city's administration and maintenance departments.

The city is in negotiations with the three unions representing the 177 public safety, administration and maintenance workers, which could affect the number of employees being laid off.

"The departments are still going through their operating budgets, but this is a close proximity of where we think we will end up," Lipitz said. "It will be fine-tuned and there will be line items in a book at a future point, but it is too early to put it together right now."

Lipitz said revenues this next fiscal year are expected to be $21.7 million, leaving the budget with a deficit of $4.7 million to be made up out of the city's reserve fund.

The council was also warned Tuesday the state is considering withholding most or all of cities' share of gas tax revenues, which in Rohnert Park is $800,000 for its streets and roads.

"If we get 20 percent, we would be fortunate," Lipitz said. "They are raiding all of our funds."

A special meeting to act on the preliminary budget is scheduled for 4 p.m. Tuesday, the last day of the 2008-09 fiscal year and the budget deadline.

You can reach Staff Writer Bob Norberg at 521-5206 or bob.norberg@pressdemocrat.com