63 Aurora employees lose jobs in layoffs

A total of 63 Aurora employees were laid off Thursday in a move designed to help the city address growing budget concerns.

The city now has reduced its work force by 100, including 37 employees who took voluntary buyouts that become effective later this month.

Thursday's cuts are expected to save the city nearly $3 million - just one step in addressing next year's anticipated $19 million budget deficit.

"Unfortunately these reductions are not sufficient to close the gap created by the city's revenue shortfall," Assistant Chief of Staff Carie Anne Ergo said. "If we cannot lower personnel costs by gaining concessions from bargaining groups, the city will need to look at further personnel reductions in every department, including police and fire."

Thursday's layoffs are effective immediately for executive and nonexempt employees. Layoff notices also have been issued for 20 union positions, according to contract agreements for AFSCME Local 3298 and AFSCME Local 1514 employees.

"We're losing some really great people today and that was shown in the overwhelmingly professional manner in which everyone conducted themselves," Ergo said. "This isn't a process anyone wants to go through."

The city's cable television station, ACTV, and the special events division each had their staffs cut in half.

Before the personnel reductions, the city employed roughly 1,100 workers, 900 of whom are represented by bargaining groups. Both union and nonunion employees received layoff notices as follows: 21 employees from the nonunion executive and nonexempt classifications; 16 full-time employees from AFSCME Local 3298, which consists of clerical positions, inspectors, planners and accountants; and four full-time employees from AFSCME Local 1514 which includes public works and water and sewer maintenance employees.

Pursuant to the union contract, 22 part-time AFSCME Local 3298 employees also received layoff notices. At this time, the city intends to retain 15 of the 22 affected part-time positions.

Ergo said the city is required to send the unions a layoff notice, which begins three weeks of impact bargaining.

"If at the end of those three weeks, there is no alternative agreement" she said, "those employees would officially leave the city's employ."

The city is offering counseling, through its employee assistance program, as well as employment resources. All employees also will receive the severance benefits to which they are entitled as defined in their pay plan or union contract.

Early last week, Finance Director Brian Caputo provided aldermen with an update indicating revenues had fallen more than originally anticipated, leaving a projected $5.6 million general fund shortfall in 2009. Caputo estimated the 2010 shortfall could reach $19 million unless the city reduces operating costs.

"Reducing staff was a difficult but necessary step," said Mayor Tom Weisner in a written statement submitted after the layoffs occurred. "Governments across the region ... already have taken similar steps to cope with the impact of the national economic downturn. Raising property taxes is out of the question, so Aurora must focus on reducing its costs."

Among those cuts, he said, are some quality-of-life services provided by the community development department and the television channel.

"During difficult economic times, we must cut back services that are not absolutely essential," Weisner wrote.

Since earlier this summer, Weisner and Caputo have warned that reductions in personnel costs were essential to balancing the city budget because they account for nearly 82 percent of the city's general fund expenditures.

More than half of those personnel costs are related to public safety.

Both the police and fire departments lost administrative or professional staff Thursday, but Ergo said no officer, paramedic or firefighter positions were eliminated.

However, city officials anticipate another round of personnel cuts will be necessary if the city does not receive significant union concessions in order to reduce personnel expenses.

Last year, the city enacted a hiring freeze for all nonessential personnel, eliminated most travel and conferences, and cut non-personnel expenses in nearly every department.

Earlier this summer, the city agreed to voluntary separation packages for 37 employees, saving more than $3 million. Last month, the city's roughly 300 nonunion employees were told they will be required to take five furlough days over the remainder of this year and 10 furlough days next year. That move was expected to save about $760,000.

Weisner also froze his salary through April 2011 and said he won't seek pay raises for nonunion employees in the 2010 budget.

Beginning today, Ergo said Weisner will meet with department and division heads to discuss the changes in management teams and to more fully evaluate the impact of Thursday's cuts on services and essential job duties.