EVERETT – The Everett City Council is considering severance pay for city employees to help address next year’s budget deficit after Proposition 1 failed this month.
The aim of the takeovers is to reduce costs by offering employees incentives to retire or leave their jobs.
The proposal was discussed for the first time at the council meeting on Wednesday. A vote could take place on August 28.
Employees who accept the severance packages must leave before November 30 of this year.
The current proposal would provide employees with severance pay equal to four months’ salary, six months of city-paid health insurance and one year of access to the Vera Clinic, city officials said. Details are subject to change before the final vote.
The city will offer severance packages to employees in administration, communications, economic development, emergency management, library, parks, fire and police. All members of the police union and select members of the public service union will also be offered severance packages. Exactly how much severance package will be offered is currently unclear.
“I am very reluctant to see these employees leave, even though they have spent a lot of time in the city and have extensive institutional knowledge,” Councilwoman Judy Tuohy said at Wednesday’s meeting.
The proposed ordinance follows residents’ rejection last week of an increase in the city’s property tax cap that was intended as a solution to the deficit.
“I am sad and disappointed that voters have decided against this proposal,” Mayor Cassie Franklin said at last week’s council meeting. “We are likely to face very painful decisions going forward about where to make cuts and what services to offer to make up for the projected $12.6 million deficit next year.”
City staff said this is a first step while they look for other ways to reduce the budget. The council had previously considered merging the city library with the Sno Isle libraries and merging the city’s fire department with a regional fire authority.
In 2019, the city offered a similar program to over 300 employees amid an $11 million budget deficit.
“We have used the voluntary separation tool in the past to offer an option to employees who are already considering leaving the city,” Franklin said. “This requires negotiation, so we must act now to ensure this is implemented to achieve the necessary savings and begin addressing the 2025 deficit.”
Roger Moller, human resources representative for the Washington State Council of County and City Employees, said the program sounds promising, but there are concerns about who will receive offers and job security in the future.
“We supported Proposition 1 and there was a lot of hand-wringing when it was defeated,” he said. “Our contract expires at the end of the year and there is a lot of fear among members about what will happen to their jobs.”
Connor Zamora: 425-339-3037; [email protected]; Twitter: @cgzamora02.
