HAMILTON — City Council is close to finalizing an agreement to allow City Manager Steve Sorrell to retire in April and be rehired two months later so he could begin to collect his pension on top of his salary.

        The move would cost Hamilton no extra money, because the pension comes from the state retirement system, Councilman Richard Holzberger said.

        It also would save council time searching for a new city manager when financial and economic-development issues demand council's attention, he said.

        Hamilton can't afford to give a new city manager months to become familiar with the details of the job, he said.

        “Steve's familiar with the problems,” Mr. Holzberger said. “It would be a disruption of continuity to have to hire someone else.”

        Mr. Sorrell has been city manager for three years and has worked for Hamilton 30 years. His annual salary is $112,000.

        In the past two months, he lost bids for city-manager jobs in Rock Hill, S.C., and St. Pete Beach, Fla.

        Mr. Sorrell said he had promised council he would not comment on his status until they released a joint public statement.

        Earlier this year, new Mayor Donald Ryan and council, which includes three new members elected in November, directed Mr. Sorrell to streamline and reorganize the city administration.

        With a projected budget shortfall of $1 million at the end of this year, Hamilton faces financial woes. Council wants Mr. Sorrell to cut spending so the 2003 budget can be balanced.

        Two weeks ago, Mr. Sorrell took a step in that direction by placing finance director James Graff on paid administrative leave. Other cutbacks are expected.

        During Mr. Sorrell's two-month absence, Assistant City Manager Mark Brandenburger would run the city administration.

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