Aurora announces furlough days, wage freeze
Aurora employees described the mood around city hall as "grim" and "uneasy" Thursday as officials unveiled a new round of cost-cutting measures that will affect about 18 percent of the municipality's work force.
The city's roughly 200 nonunion employees received a memo from Mayor Tom Weisner late Wednesday or early Thursday indicating they will be required to take five mandatory furlough days during the remainder of this year and 10 mandatory furlough days next year.
The city also will freeze wages next year for executive and nonexempt workers and is looking for ways to cut health insurance costs that could result in higher payments for those employees.
Assistant Chief of Staff Carrie Anne Ergo said employees "by and large" have communicated a willingness to pitch in and do what they can.
"Most employees understand this was coming because we've been really honest with employees, council and community with shortfalls we're anticipating," Ergo said. "Despite that, anytime you have a situation like this, it creates some uneasiness in the workplace."
Some employees fear Thursday's announcement is not the end of cuts.
Weisner said similar sacrifices will be required from all the city's unions to minimize layoffs and reduce the impact on city services.
"The city has begun initiating discussions with bargaining units because it's going to take everyone pitching in together," Ergo said. "Only time will tell, but we're definitely hopeful the unions will take a look at something similar and say 'OK.'"
Ergo said the cuts are necessary to help balance the city's 2009 and 2010 budgets and can be traced to declines in revenue from nearly every source and the recent discovery the city will be responsible for about $3 million in Illinois Municipal Retirement Fund contributions.
The city enacted a hiring freeze last year for all nonessential personnel, eliminated most travel and conferences and cut non-personnel-related expenses in nearly every department, Ergo said.
Despite those steps, the city projects a $4 million operating deficit by the end of this year and officials believe the 2010 shortfall could be even more severe.
Officials are preparing the 2010 budget that normally is sent to the city council by the end of September.
The city also is giving employees the option to apply for a voluntary separation package that includes an additional six weeks of severance pay in addition to what they are entitled, six months' additional coverage for medical and dental insurance, and a waiver of any repayments for tuition assistance from the city.
The deadline for employees to apply is 5 p.m. today. As of 6 p.m. Thursday, city officials confirmed 26 applications had been submitted.