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TO: Mayor John Laesch
FROM: Michele Clark, Chief Human Resources Officer
DATE: October 20, 2026
SUBJECT:
An Ordinance Authorizing a Reduction in Force Severance Plan.
PURPOSE:
To obtain authorization to establish and implement a 2027 Reduction in Force Severance Plan (“2027 Severance Plan”) for eligible City employees whose employment is terminated by the City in connection with staff reductions approved by the City Council during the time period of October 28, 2026, through December 15, 2026.
BACKGROUND:
The City is facing a significant general fund deficit for fiscal year 2027, and various alternatives are being considered to reduce expenditures from the general fund. In the event the City Council finds it is fiscally necessary to reduce staffing, the City believes it is in the best interest to offer a uniform severance package to impacted employees pursuant to a severance plan.
DISCUSSION:
A summary of the terms of the severance plan is detailed in the ordinance, and a template Separation Agreement and Release of Claims (“Separation Agreement”) is attached as Exhibit A to the Ordinance.
The proposed terms of the Separation Agreement include the following:
8 weeks of an employee’s current base pay as severance;
Payout of earned and accrued paid time off in accordance with City policy;
Up to 2 months of COBRA premiums for the continuation of group medical and/or dental insurance benefits to be paid by the City;
No contest by the City of truthful claims for unemployment benefits;
Neutral letter of reference;
General Release of Claims; and
45-day review period for employees to review a separation agreement.
RECOMMENDATIONS:
That the City Council authorize the 2027 Reduction in Force Severance Plan, as described in the ordinance.
cc: Committee of the Whole
CITY OF AURORA, ILLINOIS
ORDINANCE NO. _________
DATE OF PASSAGE ________________
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An Ordinance Authorizing a Reduction in Force Severance Plan
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WHEREAS, the City of Aurora has a population of more than 25,000 persons and is, therefore, a home rule unit under subsection (a) of Section 6 of Article VII of the Illinois Constitution of 1970; and
WHEREAS, subject to said Section, a home rule unit may exercise any power and perform any function pertaining to its government and affairs for the protection of the public health, safety, morals, and welfare; and
WHEREAS, The City of Aurora (“City”) is facing a significant general fund deficit for fiscal year 2027; and
WHEREAS, the City is reviewing various alternatives to reduce expenditures from the general fund in connection with the fiscal year 2027 budget process and in furtherance of the City’s long-term fiscal stability, including potential staff reductions; and
WHEREAS, the City Council finds that, in the event it is fiscally necessary to reduce staffing, it is in the best interests of the City, its residents, and its employees to authorize a 2027 Reduction in Force Severance Plan (“2027 Severance Plan”), which will provide severance packages to eligible City employees whose employment is terminated in connection with staff reductions approved by the City Council as a part of the fiscal year 2027 budget process or through a separate Reduction in Force (“RIF”) plan approved by the City Council.
NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Aurora, Illinois, as follows: Section One: Plan Established. The 2027 Reduction in Force Severance Plan (“2027 Severance Plan”) is hereby established for eligible City employees whose employment is terminated by the City in connection with staff reductions approved by the City Council during the time period of October 28, 2026, through December 15, 2026.
Section Two: Eligibility. “Eligible Employees” shall mean full or part-time City employees whose employment is terminated by the City in connection with staff reductions approved by the City Council as a part of the fiscal year 2027 budget process or through a separate Reduction in Force (“RIF”) plan approved by the City Council during the period of October 28, 2026, through December 15, 2026, and whose separation dates occur on or before February 15, 2027; provided, however, any employees who are members of a recognized bargaining unit under a collective bargaining agreement shall only be eligible for the 2027 Severance Plan with the express written agreement of their exclusive bargaining representative. Temporary or seasonal employees are not eligible for the 2027 Severance Plan. Further, employees who accept another position with the City, voluntarily resign, retire, or abandon their job, or who are terminated for misconduct or violation of City policy, are not eligible for the 2027 Severance Plan.
Elected officials, independent contractors, consultants, individuals performing services for the City who have entered into an independent contractor or consulting agreement with the City, leased employees and any temporary employees of the City are not eligible to participate. In particular, individuals not treated as employees by the City or on its payroll records are excluded from participation even if a court or administrative agency determines that such individuals are employees.
Section Three: Severance Payments and Benefits. Pursuant to the 2027 Severance Plan, Eligible Employees will be offered severance payments and benefits in exchange for a full release of claims, as substantially described in the template Separation Agreement and Release of Claims attached hereto as Exhibit A and made a part hereof (the “Separation Agreement”), with such additional changes as may be approved by Corporation Counsel. Separation Agreements shall include, but are not limited to, the following:
8 weeks of an employee’s current base pay as severance;
Payout of earned and accrued paid time off in accordance with City policy;
Up to 2 months of COBRA premiums for the continuation of group medical and/or dental insurance benefits to be paid by the City;
No contest by the City of truthful claims for unemployment benefits;
Neutral letter of reference;
General Release of Claims; and
45-day review period for employees to review a separation agreement.
Section Four: Implementation. The City’s Human Resources Department is hereby authorized and directed to implement the 2027 Severance Plan in accordance with an approved RIF. The City’s Chief Human Resources Officer is hereby authorized and directed to execute any and all documents necessary, including separation agreements and releases of claims, subject to the approval of Corporation Counsel. The City’s Chief Human Resources Officer is further authorized to implement paid administrative leaves where advisable or necessary for the operations of the City and/or to accommodate the needs of employees.
Section Five: Impacted Bargaining Units. To the extent a staffing reduction or RIF impacts recognized bargaining unit employees, the appliable collective bargaining agreement shall govern the layoff process, including the observance of any bumping or displacement procedures. Members of impacted bargaining units shall only be eligible for the 2027 Severance Plan with the express written agreement of their exclusive bargaining representatives. The Mayor, the Chief Human Resources Officer, and/or their designees, in consultation with Corporation Counsel and/or her designees, are hereby authorized to negotiate and execute any and all memoranda of understanding or agreements with impacted bargaining units that are necessary to implement and effectuate this Ordinance, subject to the review and approval by the City’s Corporation Counsel.
Section Six: Severability. If any section, paragraph or provision of this
Ordinance shall be held to be invalid or unenforceable for any reason, the invalidity or
unenforceability of such section, paragraph or provision shall not affect any of the
remaining provisions of this Ordinance.
Section Seven: Effect. This Ordinance shall be in full force and effect, and shall be controlling, upon its passage and approval.