1. Retirement/Resignation Incentive Plan

2. Plan Design  85% of Employee “Base” Pay for 2005-06  Retire or Resign by 6-30- 06 or 8-31-06  Payments to 403(b)  Payments over 5 Years  Current Contract Sick Day Severance also over Five Years

3. Advantages to Employee  Provides Assistance in making STRS Medical Insurance Payment  Supplements Retirement Payment  Allows Tax Deferred Payment

4. Advantages to Huron City Schools  Controls Timing of Retirements  Positive Cash Flow to the District EVERY YEAR  Saves Money for the District

5. Participants  9 Teachers  1 Administrator

6. Annual Savings  Assumes: New Hires will be at BA 3 BA 3 New Hires will progress through BA New Hires will progress through BA Scale Scale All new Hires will be All new Hires will be at MA 8 in FY 12 at MA 8 in FY 12

7. Why FY 12 is Critical  HB 66 begins the phase out of reimbursement for lost Personal Property Taxes  Huron will lose $200,000 that year in Personal Property Tax Revenue  This helps replace the loss without going to voters

8. Problems with Normal Attrition  Average less than two per year  Teachers are staying longer  Negative Cash flow consequence in year following retirement  We do not control the process