Aurora approves voluntary layoffs for 37 employees

Aurora officials have approved voluntary separation packages for each of the 37 nonunion employees who applied before the July 24 deadline.

City treasurer and finance director Brian Caputo has estimated the move will result in a total savings of nearly $4 million in the city's 2010 budget.

The cost savings and the fact that no one department will be losing a large number of employees is expected to allow the city to maintain current service levels, Assistant Chief of Staff Carie Anne Ergo said Friday.

The city has nearly 1,100 employees.

"In evaluating the impact on city operations at this time, we do not expect there will be a significant impact on service levels," Ergo said. "Those that applied are fairly evenly spread throughout the organization so no city department will be left underserved."

The separation packages include six additional weeks of severance pay, six months of additional medical and dental insurance and a waiver of any tuition assistance repayments owed to the city.

The 37 employees now have until Sept. 15 to determine whether to accept the voluntary separation package. Of the 37 who applied, 35 were eligible for retirement and all 37 are expected to accept the package.

"The city has, all along, indicated that this voluntary incentive will be the most generous one provided," Ergo said. "So we expect most, if not all, will move forward."

The plan is one of a number of steps the city is taking to balance its 2009 and 2010 budgets. Earlier this summer, city officials estimated a $4 million budget shortfall in 2009 and have indicated that the 2010 shortfall will be considerably worse.

Last week, Aurora's roughly 200 nonunion employees were informed they will be required to take five mandatory furlough days in the remainder of 2009 and 10 in 2010. The city also plans to freeze wages for executive and nonexempt workers in 2010.

Roughly 900 employees are represented by bargaining groups. The city is currently in contract negotiations with two employee union groups and has indicated it will seek similar cost-saving concessions from the remaining bargaining units.

"We've reached out to most of the unions and have scheduled meetings with some," Ergo said.

The consolidation of departments and operations also is being considered, along with the possible elimination of services that are not essential.