Elgin signs off on new pay plan for managers

Elgin leaders this week approved a new pay plan for nonunion city managers that opened the door for salary increases for some and a cut in pay for others.

Some residents were offended by the possibility of salary increases, especially with the down economy and the city cutting costs in other areas.

"It's a moral outrage," west-side resident Chuck Keysor said.

Councilman Richard Dunne abstained from the vote, citing a conflict of interest because he also is an Elgin firefighter and on the city payroll.

Mayor Ed Schock and council members Robert Gilliam, Mike Warren, John Prigge, David Kaptain and John Steffen voted in favor of the pay plan.

The plan upgraded 16 positions at the city, downgraded 12 and left others as is.

Overall, 24 management positions at the city have been cut since January 2009.

Now that the plan has passed, City Manager Sean Stegall has final say on which salaries are increased.

"Any pay increases will be awarded as the city's finances allow," Stegall said.

Stegall and other council members have maintained the salary bumps are promotions for workers that have taken on additional duties and responsibilities, not raises for doing essentially the same job.

"The city must manage and care for its human resources with the same vigor that we devote to our financial and physical assets," Stegall said. "For this reason it is important to have compensation systems that emphasize performance."

The city has saved more than $8 million through layoffs, eliminating positions through attrition and offering early retirement.

City officials say the new salary plan will not significantly increase payroll.

Under the salary schedule, for example, the city attorney has the potential to move up three pay grades from $150,687 a year to $174,439, a 15 percent jump. The attorney handles all workers' compensation cases now and is chief development officer now, too.

But other vacant positions have been downgraded in pay. For example, the vacant economic development director position now pays about $10,000 less.

The new pay plan also has decreased benefits.

For example, employees in management positions must pay 15 percent of health insurance premiums, an increase over the current 8.5 percent.

Employees hired after March 1 must pay 20 percent of health premiums and are not eligible for a city-backed retirement plan called a 401(a).