Last December, the Coeur d'Alene City Council approved buyout agreements for 24 city employees, paying them a combined $735,681 to voluntarily retire or resign early. The program was designed to save money. For at least one position, it has done the opposite.

City records obtained by the Idaho Fidelity Foundation show that after City Administrator Troy Tymesen accepted a $58,963 separation payment and left his post in February 2026, the city hired Ron Jacobson as his interim replacement at a contracted rate of $14,500 per month.

By April, the city's own internal tracking document showed the Tymesen position had produced a net loss of $80,009 against budget. That figure is significantly higher than Jacobson's contract rate alone would explain, suggesting additional costs were booked to that budget line in the transition period. Jacobson's actual invoices were requested under public records request 2026-323; the city has requested a 10-day extension on that request.

How the Program Was Supposed to Work

The Voluntary Separation Incentive Program, or VSIP, was pitched to council as a response to an $1.8 million budget deficit. Finance Director Katie Ebner presented the analysis in August 2025 and again in December when the agreements were brought for approval.

The pitch was straightforward: when long-tenured employees at the top of the pay scale retire, the city replaces them with lower-paid workers. Essentially, pay them a lump sum to leave sooner, and the wage differential between the departing employee and their lower-paid replacement begins generating savings sooner than it otherwise would.

Ebner's analysis was transparent about the short-term costs. She told council the program would produce a first-year net loss of $177,630, with the projected ongoing savings of $862,000 per year not materializing until after fiscal year 2028. The net benefit over the full period would be approximately $193,000. Twenty-four employees signed agreements, including eight from the Coeur d'Alene Police Department.

What Happened with Jacobson

The math worked as designed for most participants. It did not work for Tymesen's position.

Troy Tymesen, who had served as city administrator, received a separation incentive of $49,296 for a total payout of $58,963 once the city's required payroll tax and pension contributions are included. The city's own analysis projected $28,645 in savings from his departure over the first 12 months after replacement. Since the payout was $58,963, Tymesen's position was projected to cost the city roughly $30,000 more than it saved in year one, before any interim replacement costs.

Ron Jacobson was brought in as interim city administrator on a professional services contract dated February 3, 2026 at $14,500 per month. The contract, also obtained by the Idaho Fidelity Foundation, shows Jacobson does not hold the appointed office of City Administrator and serves under the direction of the Mayor and City Council.

Jacobson would go on to nominate Greg Yeager -- a deputy chief from Fort Collins, Colorado -- as Coeur d'Alene's next police chief in April 2026, over the objection of Mayor Dan Gookin and the city's own police union. That appointment is the subject of a separate ongoing investigation by the Idaho Fidelity Foundation.

The real-time tracking document produced in response to a public records request shows the cumulative picture through April: Tymesen's budgeted cost through April was $86,964. Total costs booked to his position through April were $138,155. Net loss against budget: $80,009.

That figure is significantly higher than Jacobson's $14,500 monthly contract rate alone would explain, suggesting additional transition costs were booked to that budget line. Those records will clarify what drove the tracking document figure once Jacobson's invoices are produced.

What the Numbers Mean

The VSIP program itself was not hidden from council. The financial risks were disclosed and council voted knowing year one would cost more than it saved, with long-term savings projected to reach $862,000 annually after fiscal year 2028 and a net program benefit of approximately $193,000 over the full period.

Whether those projections hold depends on replacement costs across all 24 positions tracking as planned. On the city administrator position alone, early results are running significantly behind the analysis presented to council, to the tune of $108,654 -- the gap between the $28,645 in savings projected and the $80,009 loss recorded through April.

Former Police Chief Lee White, who also accepted a VSIP payout, shows a net loss of $26,300 through April on his position as well. Two of the program's most senior participants are both tracking behind their projections in the same early period. The question of what drove those variances will be answered in part when Jacobson's invoices are produced under the pending records request.