HomeMy WebLinkAboutcc2 4 08severance City Council Date: 2.4.08 CONSENT Item: Motion ITEM: Approve severance agreement with finance specialist
SUBMITTED BY: Susan Hoyt, City Administrator
SUMMARY AND ACTION REQUESTED: The city council is being asked to approve a severance agreement with Mr. Hristo Galiov, the finance specialist. The finance specialist’s position is being eliminated for budgetary reasons. Mr. Galiov has served the city for 3.5 years. The agreement provides for wages through February 29, 2008. It also covers the city’s share of medical and dental insurance for up to six months for Mr. Galiov and his family. The agreement was reviewed and approved by Roger Knutson, who advises the city on employment matters. In 2007 the general fund revenue fell significantly short of what was budgeted. It is expected that 2008 will also be a challenging year for revenue; the reduced revenue budgeted for 2008 may fall short of what is received. Given this, reductions are needed. The current city permanent personnel funding allocated for financial services is approximately $133,896 for 1.70 positions. Eliminating the finance specialist position annually reduces the city’s personnel costs by $66,619 (including benefits). Eliminating the finance specialist position requires reallocating the specialist’s tasks to the city’s finance director, Tom Bouthilet. Mr. Bouthilet also serves as the city’s technical personnel manager and insurance representative. Mr. Bouthilet’s other miscellaneous duties such as taking charge of the IT/ web, control the purchasing of office supplies, arranging for cable broadcasts, and preparing non financial reports, have been reassigned to other staff to provide Mr. Bouthilet with the time necessary to manage the city’s finances. Other tasks will be reassigned as necessary. Having one finance staff position is consistent with other cities with a similarly sized budget, number of employees and utility billing demands. The administrator will be working with Mr. Bouthilet and with the staff to make this transition as smooth as possible. Motion
Approve the severance agreement with Mr. Hristo Galiov dated January 24, 2008 and thank Mr.
Galiov for his three and a half years of service to the city of Lake Elmo.
ATTACHMENT:
1 Severance Agreement dated 1-24-08