Henderson buys out more than 100 employees

City Council authorizes up to $11 million to fund the program

Thursday, June 18, 2009 | 4:18 p.m.

City of Henderson

Henderson’s offer to buy out veteran employees has had 104 takers with about three weeks to go, and the City Council unanimously authorized up to $11 million Tuesday night to fund the program.

The city has spent a little more than $10 million so far, and 63 of the 104 employees who took the buyouts have already left.

Departure dates for the rest are staggered throughout the upcoming months.

The 104 employees who have accepted the deal represent 6 percent of the city’s workforce, carrying annual salaries and benefits that total almost $11 million, Acting Human Resource Director Fred Horvath said.

Employees who accept a buyout receive two weeks of pay for every year with the city and three months of medical coverage.

When the buyout plan was initially announced, it was projected to save Henderson $15 million over the next four years. But with acceptance rates higher than expected, Horvath said, that number will increase.

His staff is working on a program that will track the savings of vacant positions each pay period for an accurate running count of how much money the buyouts save the city. “I’m pretty comfortable that it’s going to push $20 million,” he said.

Four department heads — Steve Hanson (Finance), Shauna Hughes (City Attorney), Daryl Moore (Human Resources) and Skeet Fitzgerald (Neighborhood Services) have taken the buyouts, as well as Public Information Manager Cindy Herman.

Hanson has agreed to remain with the city until February to help manage the financial crisis, while Hughes and Moore have already left. Herman is scheduled to leave the city next week, and Fitzgerald’s departure date has yet to be determined.

A number of other mid-level managers, including Emergency Medical Services Division Chief Randy Howell, Fire Battalion Chief Randall Jones, Fire Marshal James Madden, Park Operations Manager Lynn Phelps, Assistant Finance Director Thomas Powell and a handful of deputy and assistant city attorneys, have also accepted buyout offers.

Any position that is vacated must be cleared by an interdepartmental review committee before it can be refilled. Of the 63 positions that have been vacated, 39 remain vacant, 20 have been approved for internal recruitment only and four have been approved for external recruitment.

The other 41 employees who have accepted a buyout have not left yet and no decision has been announced as to which of those positions will be refilled.

Henderson has offered the buyouts in three rounds.

The first, which ended in March, required that an employee’s age and years of service with the city, when added together, equal 65 years to be eligible. Of the 350 eligible employees, 65 accepted.

To cut additional costs, the City Council authorized a second round of buyouts in March open to any employee whose age and years of service equaled 60 years, hoping to attract 25 more participants. Employees eligible for the first round were not eligible for the second.

Employees of the Development Services Center, which handles construction and business permits and has seen its workload cut by more than half, were eligible for the second buyout, regardless of age or years of service.

When only 15 employees accepted the second-round offer, the council authorized a third round, open to both groups, but instead of the 10 participants they hoped to get, they got 21.

“There were a whole bunch of people who said no (to the first round) out of fear of that life-changing event,” Horvath said. “Then it went away, and when it came back, they’d had time to really think about it and evaluate their situation.”

The city still has about $800,000 to fund additional buyout requests, Horvath said, and the council’s decision Tuesday night to move all city departments to a four-day work week could make competition for the last few slots tight.

The city estimates that 15 positions may be cut when the work week changes in August or September, and Horvath said eight employees who could be affected are weighing the buyout against trying to transfer to another city department.

“There’s a possibility that I will be turning people away,” he said.

Discussion: 14 comments so far…

By Babyboomer

6/18/09 at 5:04 p.m.

Suggest removal

104 employees equals $11 million dollars ??? Two weeks for every year of service x a 20 year employee you do the math. That's some buyout.No wonder all the heads of Departments jumped ship. I've been through one of those buyouts before, but they never never paid that whooping $$ amount.What a rich county.
By nednougat

6/18/09 at 5:59 p.m.

Suggest removal

Now they need to park all those little inspector trucks. Maybe they could auction them off. My friend, a housing supt, says it's amazing how they pull up, do the inspection, and then pull under a tree for a little nap. Nothing to do. Gonna' be like this for years....
By neiman1

6/18/09 at 9:38 p.m.

Suggest removal

It's a great plan. The highest paid people are bailing out and leaving jobs for the new ones with years to give. It works for everyone. Congrats to all for making things work.
By Tim24681

6/18/09 at 10:20 p.m.

Suggest removal

If you need to let people go, why not just cut jobs? Why do you need to buy them off?
By markp

6/19/09 at 6:31 a.m.

Suggest removal

same has happened in the UK the lowly workers have been made redundant, yet the execs get huge payoffs to leave and then come back to same job a month later... criminal
By RLH

6/19/09 at 8:03 a.m.

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RE: Tim
What if it was your job getting cut? Thats a horrible idea! Enough people have lost their jobs over the last year. Offering a buy out so they don't have to do that is a great idea!
By tannsummers

6/19/09 at 10:22 a.m.

Suggest removal

Apparently, it pays to work for the Government. Certainly, Obama's government.
By geenab65

6/19/09 at 2:28 p.m.

Suggest removal

Tannsummers,

I work for the government, worked for the government when Bush was in office and now work for government with Obamba in office. Perhaps you can share with all of us, your great insight and the differences you see? I see more people, private and public sector losing things they didn't think they ever would. We're all in the same boat, buddy. We're ALL suffering in some way or another. Instead of b****ing, placing blame and moaning about it, put on your big boy pants and deal with it!!! Be grateful for what you have, because a have-not will probably slit your throat for what you have.
By Tim24681

6/19/09 at 4:16 p.m.

Suggest removal

Well, It's my tax dollars. Why should I pay someone to leave? And why should you get more based on years of working there? You've gotten years of guaranteed step raises, and a paycheck to compensate you for your time? Why should I as a taxpayer have to pay you more not to work?
By geenab65

6/19/09 at 5:33 p.m.

Suggest removal

Tim you're right, and I agree with you but I didn't make up the rules. Those are my tax dollars too....
By deepthroat

6/20/09 at 1:47 p.m.

Suggest removal

let me tell you, its a joke!! only the highest paid persons are taking the buyout. those employees then are replaced with the lower hierachy employees thus the only ones getting a deal are the old timers who make big $$. an inspector will make little $$ but a dept/manager makes bank and is replaced immediately soo wheres the savings?? it looks like they are going to lay people off anyway so why give golden parachutes to the executives?? the city should just reduce staff. if there is no work, layoff. dont ignore the issue. the city is at fault for building up a staffing level without considering economic implications or having a backup plan. they should fire the city manager, finance director and any upper assistant managers. thats what the council should do!
By geenab65

6/20/09 at 4:46 p.m.

Suggest removal

I don't think the answer is necessarily laying off staff but if there are no customers, lengthen the business hours and close down one day of the week? Although Henderson is already closed on Fridays, maybe they should try a 36 hour work week while keeping health benefits intact?
By deepthroat

6/21/09 at 11:14 p.m.

Suggest removal

what?? ok lets think about this... when there was lots of work, city hired staff...now there is no work....sooo lets keep all staff??? NO the hard fact is last in, first out. if there is no work then cut them loose and trim staff. city council has no guts.
By mrxroc8

6/23/09 at 12:27 a.m.

Suggest removal

Assistant Finance Director Thomas Powell, Steve Hanson Finance and Shauna Hughes City Attorney
How are those Henderson Municipal Bonds doing now???

These and other people have profited handsomely over the years. Now they are being REWARDED for running the City Financial system into bankruptcy. How do they plan to pay for all this??? Reduce services to the Citizens...watch for it...it's coming next after everyone is safely out!

I challenge the Henderson City government to publish all of the expense reports for all employees for the past 5 years on your website for all to see. No redaction's...Let's see if the Citizens feel you deserve large severance packages with the City in Financial ruin. Approved by the Henderson City Council does not mean approved by the people! Let's vote on it!

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