Key personnel with the city of Coeur d'Alene have applied for a Voluntary Separation Incentive Program that would see them part ways with the city next year.

City Administrator Troy Tymesen, Parks Director Bill Greenwood, Fire Chief Tom Greif, Police Chief Lee White and veteran firefighters Bill Deruyter, Jeff Fletcher and Matt Sowa are among the 24 employees seeking to accept the incentive agreement. Greif and White announced their retirements earlier this year.

The program aims to reduce personnel costs by offering incentives for longtime staff with higher salaries to leave their employment with the city, replacing them with lower-salaried personnel or leaving positions open.

City Councilor and Mayor-elect Dan Gookin said an argument can be made that many of these employees would have quit or retired anyway, and the city would not have had to implement a payout system. 

"We could have just gone ahead and accepted the resignation and moved on because turnover is something that happens a lot in government and in the business and pocketed the savings,” Gookin said Friday. “But we offered the incentives to encourage a few employees who might be interested in resigning or retiring and moving on to go ahead and take that opportunity.”

The Coeur d’Alene City Council previously directed staff to analyze the fiscal impacts of offering an incentive program that would allow employees to apply for a one-time incentive payment in exchange for a voluntary separation within the next 12 months and separating from the city’s insurance coverage. 

Through the program, an eligible employee would receive a 1% service payout based on their base annual wage in the 12 months preceding their separation date, multiplied by their total years of completed city service.   

It's estimated that the program could save the city nearly $200,000 over the next three years and even more in the years that follow.

The move comes as the city faces financial challenges and seeks to reduce costs.

"You want to be able to cover all your expenses and that's the issue right now — we are seeking that revenue or looking to cut expenses so that we can have a more balanced budget," Gookin said.

Gookin said he expects the city will be able to maintain operations despite the possibility of several key personnel leaving in the next year.

"The system will not collapse — it will just adapt, and we will move on. This happens in a lot of organizations — it’s just that the retirement incentives may have accelerated it," he said.

Gookin added that those opting for early retirement will be missed, but said it's part of the process.

"The biggest feedback I've gotten from this turnover is it's good to have some new faces and get some new blood in there," he said.

Tymesen and Greenwood could not be reached for comment.

The City Council will consider approving the separation agreements during its meeting at 6 p.m. Tuesday at the Coeur d'Alene Public Library Community Room.