Rapid City will see savings in coming years from Mayor Allender's early retirement plan, just not as much as was hoped. In August, the city council approved a plan to offer employees eligible for retirement a bonus equal to three months of pay if they agreed to retire in December. The payout would be balanced by the savings from hiring new workers at a starting wage.
The mayor stated in a letter to the city council that 18 employees took the payout, providing an expected savings of $303,393.57 per year for a one time cost of $330,220.80. Reporting on the topics, the Rapid City Journal noted that Mayor Allender had hoped that about half of the 92 eligible employees would take the payout, but is still happy with the result.
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