City's separation package a success, but at what cost?

Earlier this year, the city offered a Voluntary Separation Incentive Program to employees who met certain parameters, with the goal being to save money as the city has been operating in the red. 

The response to accept it was greater than we expected, but perhaps we should not be surprised. 

In a nutshell, the savings come from replacing highly paid, longtime employees with new or less-experienced staff who will draw smaller salaries. Some posts may go unfilled. 

The city’s budget for personnel costs is currently $56.6 million. It budgeted for 427 full-time equivalent employees this fiscal year. That comes out to more than $100,000 per employee, which seems high for a city of about 58,000 people, but this is a well-run city and for that, there is a cost.  

Still, it helps explain why the city offered this incentive package as it tries to balance the budget in the years ahead. The city projects a net savings of nearly $200,000 over the next three years through the program, with another $862,000 in ongoing savings projected after fiscal year 2028. 

Based on finances alone, it is a necessary move.

The Coeur d’Alene City Council in September approved a 2025-26 budget of $151.9 million that included the allowable 3% property tax increase to generate $835,383 and 1% of forgone taxes that will bring in $290,146.  The budget also called for using $1.8 million from the general fund balance. 

The list of those who accepted the offer includes people holding key positions with the city. Names like City Administrator Troy Tymesen, Parks Director Bill Greenwood, Police Chief Lee White, Fire Chief Tom Greif and veteran firefighters including Bill Deruyter, Jeff Fletcher and Matt Sowa are among them. 

That's lot of experience and institutional knowledge going out the door in a short time. While we understand the city needs to curb spending, we wonder about the impact of losing folks who have long been part of this city and are part of the reason why it is such a great place to live. 

Of the 24 who applied, seven are with police and seven are with fire. As public safety is critical, we don't like to see so many leaving those departments.

We don’t blame anyone for accepting the city’s offer, as it’s a good one. 

Consider a few of the incentive amounts for city staff as listed in a city report: Tymesen, $49,296; Greif, $49,612; Greenwood, $38,029; White, $19,320; and Deruyter, $31,347. That is good incentive to part ways with the city.

Don't get us wrong. We’re not begrudging these fine folks to which they are entitled. They have done fine work. We are saying the city offered a generous package but wonder if it is trading talent for savings. 

That said, we are glad to see the city paying close attention to its budget and trying to reduce costs. We are confident the city has talented and dedicated individuals ready and willing to step into new roles and keep Coeur d'Alene the great place it is today.