The retirement incentive comes on the heels of a hiring freeze. The city faces a more than $330 million projected budget deficit heading into the next fiscal year.

As Houston contends with a $320 million budget deficit heading into the new fiscal year, Mayor John Whitmire plans to offer municipal employees a retirement payout as officials look for ways to cut costs.

Mayor John Whitmire says City of Houston employees should expect citywide restructuring and offered a one-time retirement payout option to eligible employees.

Whitmire wants to implement a hiring freeze in the city government. As of September, the city had nearly 5,000 vacant positions.