Elk Grove Village employees all agree: No pay raises next year

Elk Grove Village's police union Tuesday night signed a one-year contract with no pay increase following the example of the public works and fire unions that earlier decided to forego raises for next year.

The current police contract expires April 30. The new contract begins May 1.

Public works and fire department union employees would have received a 3.25 percent increase on May 1, per their contracts which expire April 30, 2012.

The three unions jointly amount to roughly 80 percent of the village's 350 employees, including part-time staff and summer help.

All village employees - including the mayor, village manager, village attorney, department heads, nonunion employees, and police, fire and public works unions - will not receive pay raises in 2010 as salary ranges remain frozen at current levels.

That saves the village about $850,000, Elk Grove Mayor Craig Johnson said.

"Every employee in the village has agreed to no pay increase, and I don't think you'll find that anywhere," Johnson said. "There was no protest ... no fighting. That's something you don't see. In the 54-year history of the village, we still have never laid anybody off."

The village has cut its spending for the 2010 fiscal year budget by $10 million from the previous year due to the economy. The proposed village budget for the fiscal year starting May 1 is $83.2 million.

Cutbacks include pay freezes, eliminating seven employee positions through attrition and retirements, deferred hiring for 18 vacancies, and reducing special events spending - resulting in a shorter Fourth of July fireworks display.

Meanwhile, the village has held back on raising its portion of the property tax levy for three years.

Officials are trying not to eat too much into the reserves, which were $19 million 18 months ago, but will be down to $13.5 million at the end of this fiscal year.

By the end of the 2010 fiscal year the reserve fund will dip below the four months of operating expenses officials like to maintain as a cushion.

"We started back in January with this process, and we all came together," Johnson said. "They (employees) were willing to step forward and come through for everyone. I cannot thank them and commend them enough. It's just phenomenal."

Johnson said village leaders will meet with all the unions again in January and update them on the village's financial status.

"My hope is that they have taken a hit this year for the community, and next year we can reward them," he said.