The city is looking to borrow almost $16 million, including $5 million to cover retirement payments to 38 retiring police officers and firefighters.
City officials have not yet released the names of the retirees nor how much each of them would get. The $5 million would cover 24 police officers and 14 firefighters who have indicated they may retire during the next eight months, officials said.
The preliminary numbers indicate the retirees would get an average of $131,000 apiece.
Last year, the council also approved $5 million in bonds for retiree payments, but the city ended up borrowing just $4 million because some employees on that list were staying in their jobs.
Besides compensating retires for unused vacation days, the payments also cover something called “terminal leave” that the city’s labor contracts provide to Paterson police officers and firefighters. Under terminal leave, retirees with 25 years of service get a lump sum payment equivalent to 720 hours – or 90 eight-hour days - of severance pay.