LAKEPORT ? The Lakeport Community Development director said Monday during a special City Council meeting he will review unemployment and workers” compensation insurance to find a good deal for temporary employees the city wants to hire with Subsidized Employment Program funding.
“The unfunded liability put a shadow over the program,” Community Development director Mark Brannigan said.
The program pays 100 percent while employees are working, but once the program ends the city may have unfunded liabilities for unemployment insurance and worker”s compensation claims, Brannigan said.
“Wow, that could be almost the cost minus benefits from when they”re here,” Mayor James Irwin said.
The city has many unfilled positions, which the program could help to fix by offering temporary employment and training for low-income people out of work, Brannigan said. On Feb. 2, the council unanimously authorized the exemption to the hiring freeze to temporarily fill positions funded with the Subsidized Employment Program.
Brannigan will bring the issue back to the council at an upcoming meeting.
Councilwoman Suzanne Lyons and Councilman Rob Rumfelt were absent.
Council members voted to adopt a resolution to lease a street sweeper with the option to buy and do so with general fund reserves that will be paid back by the Public Works Department.
Borrowing the money from a city fund will save the Public Works Department about $12,000 in interest.
“I would rather keep that locally, I don”t think it”s going to affect cash flow,” Irwin said.
The council did not address closed session issues Tuesday about the city manager and will take the item up 5 p.m. Thursday.
Contact Katy Sweeny at kdsweeny@gmail.com or directly at 263-5636, ext. 37.
