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~ Spokane Mayor Lisa Brown announced on Wednesday that the city is taking further steps to eliminate its structural budget deficit. In a press conference, Mayor Brown revealed two new measures that will help address the financial challenges faced by the city.
The first measure is a voluntary retirement incentive for city employees who meet specific criteria. This proposal comes after positive discussions with the Managerial and Professional (M&P) Association leadership. Under this agreement, eligible employees will receive a lump sum incentive contribution into an HRA/VEBA account based on their years of service with the city. The amounts are as follows: $10,000 for employees with 10-15 years of service, $15,000 for those with 15-20 years of service, and a maximum of $20,000 for employees with 20 or more years of service. These funds can be used to continue medical and dental coverage under COBRA, pay for private coverage premiums, or other allowable expenses under the HRA/VEBA plan.
To take advantage of this retirement incentive, employees must apply by 5 p.m. on October 11th, 2024 and separate from the city no later than December 3rd, 2024. The proposal will need approval from the City Council before it can be implemented.
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In addition to this retirement incentive, Mayor Brown also announced a six-month freeze on cost-of-living adjustments (COLAs) for Cabinet members in 2025. This cost-saving measure is part of a series of actions taken by the Brown Administration to address the budget deficit. Other measures include a voluntary retirement incentive for eligible Spokane Police officers, renegotiated IT contracts, elimination of the Reprographics Department and vacant positions deemed unnecessary, mandatory Cabinet furlough days, and updated revenue forecasts based on actuals from 2024.
Thanks to these efforts, the structural deficit has already been reduced from $25 million to $14 million as of September 1st. Mayor Brown emphasized that these measures are necessary to fulfill her promise to manage the city's finances responsibly. She stated, "Through careful planning and tough decisions, we have managed to bring our budget closer to balance and are continuing our work to ensure we get fully back on track."
The Mayor's proposals will now go through the necessary approval processes before being implemented. With these measures in place, the City of Spokane is taking significant steps towards eliminating its structural budget deficit and ensuring a stable financial future for its residents.
The first measure is a voluntary retirement incentive for city employees who meet specific criteria. This proposal comes after positive discussions with the Managerial and Professional (M&P) Association leadership. Under this agreement, eligible employees will receive a lump sum incentive contribution into an HRA/VEBA account based on their years of service with the city. The amounts are as follows: $10,000 for employees with 10-15 years of service, $15,000 for those with 15-20 years of service, and a maximum of $20,000 for employees with 20 or more years of service. These funds can be used to continue medical and dental coverage under COBRA, pay for private coverage premiums, or other allowable expenses under the HRA/VEBA plan.
To take advantage of this retirement incentive, employees must apply by 5 p.m. on October 11th, 2024 and separate from the city no later than December 3rd, 2024. The proposal will need approval from the City Council before it can be implemented.
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In addition to this retirement incentive, Mayor Brown also announced a six-month freeze on cost-of-living adjustments (COLAs) for Cabinet members in 2025. This cost-saving measure is part of a series of actions taken by the Brown Administration to address the budget deficit. Other measures include a voluntary retirement incentive for eligible Spokane Police officers, renegotiated IT contracts, elimination of the Reprographics Department and vacant positions deemed unnecessary, mandatory Cabinet furlough days, and updated revenue forecasts based on actuals from 2024.
Thanks to these efforts, the structural deficit has already been reduced from $25 million to $14 million as of September 1st. Mayor Brown emphasized that these measures are necessary to fulfill her promise to manage the city's finances responsibly. She stated, "Through careful planning and tough decisions, we have managed to bring our budget closer to balance and are continuing our work to ensure we get fully back on track."
The Mayor's proposals will now go through the necessary approval processes before being implemented. With these measures in place, the City of Spokane is taking significant steps towards eliminating its structural budget deficit and ensuring a stable financial future for its residents.
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