Elgin cuts 11 jobs for 2010, targets unions next
With an Elgin city budget deficit of $5.5 million looming for 2010, the city Thursday laid off 11 people, reassigned one person from full-time to part time and eliminated the vacant city forester position.
In all, the moves will save $1.2 million next year in salaries and benefits. One city council member said the city will ask for union concessions next.
The layoffs came a day after City Manager Sean Stegall said that barring any disciplinary cases, all employees on the city payroll now will be on it through December as the city used reserves to plug a 2009 deficit of $1.7 million to $2.2 million. That holds true.
The severance packages for the workers - who were in nonunion management positions - run through mid-December and the cost savings won't be realized until 2010.
City council members signed off on the severance packages Wednesday night.
The positions eliminated Thursday include: water meter supervisor; civil engineer; sports complex supervisor; MIS GIS technician; fleet maintenance supervisor; police records supervisor; assistant building maintenance supervisor; housing and rehabilitation coordinator; community outreach coordinator; human resource specialist; and human resources technician.
A full-time cable productions specialist was made part-time.
They will receive city-funded medical coverage through Jan. 31 and 60 days of severance pay.
Councilman Robert Gilliam said the layoffs were unavoidable because the city council does not want to raise property taxes next year.
"Most households are going through belt tightening. We just have a bigger house," he said, noting the city will likely ask for cost cutting to come from the fire department and Service Employees International Union Local 73, which represents more than 230 public works employees and support staff.
That union last spring inked a 2-year deal with 2-percent annual raises that runs through the end of 2010.
Union steward William Potts could not be reached for comment.
Gilliam said the police department already has several unfilled positions, so city leaders will look for concessions from the Service Employees union and firefighters instead.
"This is a round of cuts for nonunion personnel. Now, (the city) is in the process of talking to unions about cuts," he said. "It's going to take a while to see what's going to be cut. Everything is based on seniority and qualifications."
Thursday's layoffs mark the second wave in the past year.
Last November, the city laid off 16 employees but many of those positions were growth based. In other words, development fees helped pay their salaries.
Stegall said Thursday's layoffs were in the "best interest of Elgin as a whole."
"This is a sad day for everyone, but it is the responsibility of Elgin leaders to do what is in the best interest of the entire city - and our taxpayers expect that," he said. "Before considering which positions would be eliminated, we wanted to ensure the highest level of service would be maintained. It was under that prism that we examined positions that could be combined, redefined or reconstituted before deciding how to move forward."
Richard Dunne, a city council member and Elgin fire lieutenant, said he was unhappy because the city fired people and he doesn't believe he and two other recently elected council members had input on spending priorities that drove the layoffs.
He also noted the fire department is down a fire marshal, training officer and 12 rank-and-file firefighters. He believes the city needed to look at more creative cost saving measures before resorting to layoffs.
"I think they've cut the fire department to the bone," Dunne said. "We need to look at making significant cuts in programs before we look at personnel."