Fiscal Note
The proposed resolution authorizes agreements with the Town of Madison ("Town"), Fitchburg, and Town employees regarding severance payments to Town employees when the Town ceases to exist in October, 2022. Severance payments are the joint obligation of the City of Madison (“Madison”) and Fitchburg. Total payments to Town employees are currently estimated at $870,000. Severance payments will be paid by Town funds in September. If the Town has insufficient funds to cover the severance payments, Madison will be invoiced for 75% of the remaining costs. The 2022 adopted operating budget includes $500,000 within Direct Appropriations to support one-time costs related to the Town attachment and will be used to support any severance amounts not paid by Town funds and owed by Madison.
Title
Approving agreements with the Town of Madison, Fitchburg, and Town employees regarding the Town’s issuance of severance payments to eligible Town employees at the time of final attachment of the Town on October 31, 2022.
Body
WHEREAS, on October 10, 2003, the City of Madison, the City of Fitchburg and the Town of Madison entered into a Cooperative Plan (the “Cooperative Plan”) under which the Town of Madison (the “Town”) will cease to exist on October 31, 2022 (“Final Attachment”) and Town territory, and all Town assets and liabilities, will be divided between the two Cities; and,
WHEREAS, under Section 14 of the Cooperative Plan, at Final Attachment any person who is a Town employee at the time of Final Attachment, and who is not offered suitable employment by either of the Cities on terms at least equivalent to those provided by the Town job, shall be entitled to a lump sum severance payment according to a defined schedule that accounts for their salary with the Town and their years of employment with the Town (“Severance Payment”); and,
WHEREAS, pursuant to the Cooperative Plan, the Severance Payments are the joint obligation of Madison and Fitchburg, not the Town, ...
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