13 Arlington Hts. employees take buyout

Thirteen employees will accept voluntary retirement offers of two years of health insurance, saving the village of Arlington Heights' general fund an estimated $600,000 in the first year.

The administration was pleasantly surprised at how many took the offer, said Village Manager Bill Dixon Monday. However, the possibility of more layoffs has not been totally eliminated, he said.

Unlike buyouts offered by other area municipalities, the Arlington Heights plan offers only health insurance, not additional cash payments.

The village board gave preliminary approval to accepting the retirements and is expected to finalize it on Monday, Dec. 20.

Five of the jobs can be eliminated, saving $485,000, Dixon told the board. The remaining eight employees would have to be replaced in some fashion, but at least $113,000 of their salaries would still be saved from the general fund. The 13th employee, who apparently would be replaced, is paid from the water and sewer fund, so that retirement will not help the struggling general fund.

The village needs to fill a $3.6 million deficit in the $62 million general fund budget for the year starting May 1. The staff has proposed $1.4 million in cuts and $2.1 million in tax increases that have already been approved.

In early November, Dixon estimated that eliminating six positions, mostly with layoffs, would save $425,700, so the voluntary retirements save more money, he said.

The money for the retirement incentive will come from the village's health insurance fund, which is in strong financial condition, he said. Only employees who were eligible for retirement could take the offer, and the ones who did obviously planned to leave within a few years anyway, he said.

The village, which has more than 400 employees, has cut the equivalent of 38.5 full-time positions over two years.