DeKalb will outsource building inspections and hire two part-time property maintenance inspectors as a part of the fiscal year 2015 budget, which starts on July 1.

Building supervisor Kent “Lou” Larson and building inspector Dave Reynolds will receive severance payments totaling more than $140,000 as a part of their separation agreements.

Mayor John Rey said outsourcing will bring $250,000 in savings as opposed to staffing internally.

“Putting the employees on paid administrative leave was a measure to facilitate whether outsourcing would prove to be more economical,” Rey said.

Larson and Reynolds have been on paid administrative leave since May when the city decided to look into the economics of outsourcing.

Larson will receive a total of $82,834, according to the June 23 DeKalb City Council Agenda. Of that amount, he’ll receive a lump-sum payment of $32,595 that is equivalent to 20 weeks of regular and longevity pay.

The remaining $50,239 includes a $500 separation gift and more than seven months in accrued sick, vacation and compensation time at a rate of $42 per hour.

Reynolds will receive a total of $57,929, according to the agenda. Of that amount, he’ll receive a lump-sum payment of $26,180 that is equivalent to 45 days of regular and longevity pay. The remaining $31,748 in his separation agreement accrues about five months in sick, vacation and compensation time at a rate of $37 per hour.

The city will pay for Reynolds’ health insurance through Dec. 31. Through the period of continuing insurance coverage, the city will pay costs approximating at $9,500. The city will deduct an estimated $2,500 that Reynolds would have contributed from his lump-sum payout.

City Attorney Dean Frieders said the lump-sum payments were based on the employee’s time working for the city. Larson worked for the city for 20 years, and Reynolds worked for 18 years.