More taxpayer money is needed to buy retirement gifts for City of Kelowna employees, municipal managers say.
A proposal to boost funding for the gifts by 50% is contained on page 256 of the 500 page provisional 2022 municipal budget to be considered by councillors on Thursday.
Asked Tuesday if he supported using more taxpayer money to buy retirement gifts or provide cash bonuses to workers leaving the city’s employment, Kelowna Mayor Colin Basran responded: “You’ll find out on budget day. I’m sure you have an editorial in mind if I do.”
Money currently allocated for the retirement presents or cash gifts, which are in addition to pensions and end-of-career payments for such things as unused vacation, isn’t sufficient because so many city workers are retiring, city councillors will be told Thursday.
“The city recognizes the dedication of public service careers with staff through the provision of a retirement gift at the end of career,” the proposed budget item states. “Due to the increase in volume of staff retirement driven by current age demographics, this program has been consistently over budget the past two years.”
Currently, $14,500, all funded by taxation, is used to buy the retirement gifts or provide cash bonuses to retiring employees. The proposal is to boost the amount for gift-buying or cash bonuses to $21,500.
The City of Kelowna had approximately 950 full-time employees last December and the 2022 budget proposes the hiring of 47 more people. From 2018 through 2020, an average of 30 city workers retired each year. This year, 47 have or will retire.
Currently, the city’s retirement gift policy provides a present or a cash bonus for any worker who leaves after a minimum of five years’ employment.
The cash bonus or value of the retirement gift is based on a scale of $25 for each year spent working for the city. So an employee who leaves after 20 years could choose to take a $500 payment or a gift of that value, selected from a catalogue.
The proposal to increase taxpayer funding for the retirement gift program would not increase the value of the present or the cash bonus given to a departing employee. Rather, it would ensure the funds aren’t taken from other city areas.
“This is just to help fund the increase in the retirees that comes from both the city growing over the years as well as a recent increase in the percentage of people retiring,” Human Resources director Stu Leatherdale said.
“The budget has not increased in the 10 years that I’ve been HR director, neither the total budget nor the $25 per year, per person (value of the gift or retirement cash bonus),” he said.
Increasing taxpayer funding for the retirement gift program from $14,500 to $21,500 is listed in the budget as a Priority 2 item, which means it would require a proposal from a city councilor to add it to the main budget.
