Elgin trimming 54 positions to balance budget
One desire of taxpayers is that they want government to function more like a business.
The city of Elgin took one step toward that end this week, laying off 16 nonunion employees in an attempt to balance its 2009 budget.
Overall, 54 positions will be eliminated, including 17 more positions will be cut through attrition in conjunction with an early retirement program being proposed by the city council. Also, 21 positions will be eliminated through not filling vacancies or through reassignments of other employees.
The moves will save the city $5 million in 2009.
"This will ensure that our budget is balanced. Service is still the No. 1 priority at the city," said Sue Olafson, city spokeswoman. "It was a very, very difficult decision to make. No organization wants to initiate a reduction in force. These were valuable employees and we appreciate their service."
The cuts included: a part-time secretary, an administrative assistant, an economic development coordinator, a senior planner, a part-time bilingual clerk/typist, planning and research coordinator, a community restitution supervisor, the emergency telecommunications director, an engineer, a senior engineer, the traffic superintendent, the public works administrative superintendent, the community recreation supervisor, a Centre building supervisor, the Hemmens program coordinator and a management information systems engineer.
The employees will be paid through the end of this year, Olafson said. Health insurance for those laid off will run through February.
Olafson said city leaders have pledged not to increase the city's property tax rate but will be examining fees charged to builders and residents alike.
"Where fee increases make sense, they will be considered," she said.
Sean Stegall, the assistant city manager charged with developing the city's budget, did not return several phone calls Thursday or Friday.
City Manager Femi Folarin also did not return phone messages. But Folarin did say, in a prepared statement, he authorized the cuts so the city can remain in the black for the next five years.
"Due to the recent turmoil in the housing and financial markets and its impact on the overall economy and the city's major revenue sources, the city is projecting significant deficits in the general fund five-year financial plan," the statement read. "In order to address the situation, I have authorized the reduction in force plan along with other non-personnel related cost-cutting measures. Based upon current economic projections I expect that with these actions the city's five-year financial plan will remain balanced. These actions, while difficult, are necessary to preserve the city's long term financial health and will allow the city to continue providing a high level service to our community."
Mayor Ed Schock could not immediately be reached for comment Friday.
But on Thursday night he said the city gave notice to 17 employees about early retirement options.
To qualify, employees had to be older than 50 and have 20 years of contributions to the Illinois Municipal Retirement Fund. Another 17 employees also will receive notice soon.
Schock said the early retirement notification was a routine step the city takes every five years. Not all of those notified are expected to take the option, he said.
The mayor also said the employees were being notified now of the option because if they're laid off, they can't retire early.
Olafson said none of the employees laid off Thursday were eligible for early retirement.
Last week, police union officials criticized a proposal to reassign 13 officers from specialty units such as gang enforcement, major investigations and Drug Abuse Resistance Education, or DARE, to patrol duty.
Union attorney Tim O'Neil could not be reached for comment and Chief Lisa Womack has not returned phone messages, referring all inquiries to Stegall.
Meanwhile, the city council is expected to take its first formal, public look at the 2009 budget at 5 p.m. Wednesday, Nov. 12, at city hall, 150 Dexter Court.