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The Longboat Key Town Commission has some budget decisions to make at 9:30 a.m. Wednesday at Town Hall, 501 Bay Isles Road.
Longboat Key Tuesday, Aug. 13, 2013 4 years ago

Big budget decisions set for Wednesday

by: Kurt Schultheis Senior Editor

The Longboat Key Town Commission has some important decisions to make at a 9:30 a.m. meeting Wednesday at Town Hall.

For starters, commissioners have to decide if they want to allow general employees to have a Deferred Retirement Options Program (DROP) and an early-retirement incentive.

Commissioners will review the cost of those options in two separate formats.

The cost for the DROP program, which allows employees to officially retire but continue to work for the town while the town places their pension checks in an interest-bearing account, was calculated two ways: offering a two-year window for eligible employees or a five-year window.

The five-year window would allow up to eight employees to enter the DROP and will cost the town an additional $58,332 per year. The total cost is nearly $1.75 million over a 30-year amortization, according to figures releases by actuaries last week.

If a two-year DROP window is approved, that allows two employees the opportunity to enter the DROP and would cost $3,484 per year and $104,520 over a 30-year amortization.

The early-retirement option would allow employees to retire at age 50 after 25 years of service and collect a pension.

Thirty-seven of the town’s 43 general employees could qualify for early retirement, and, if they all decide to take early retirement, the cost to the town is $9,818 per year, or $294,540 over a 30-year amortization period.

For more information on Wednesday's meeting, check for updates.

Contact Kurt Schultheis at [email protected].

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