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TO: Mayor John Laesch
FROM: Shannon Cameron, Chief of Staff
DATE: September 23, 2025
SUBJECT:
2025 Voluntary Reduction in Force Incentive Plan.
PURPOSE:
The City of Aurora (the "City") is offering the City of Aurora 2025 Voluntary Reduction In Force Incentive Plan (the "Plan"). The purpose of the Plan is to decrease the anticipated budget deficit and minimize possible layoffs by providing additional severance pay and benefits to incent eligible employees who agree to voluntarily separate their employment with the City according to the Plan's terms, whose applications are accepted by the City, who sign a waiver and release provided by the City, and meet all other terms of the Plan
BACKGROUND:
In 2011, facing a general fund budget shortfall, the City of Aurora adopted this plan to reduce staffing levels. Today, the City of Aurora is facing a similar situation in the need to reduce the general fund deficit. Small adjustments have been made to update the Plan to accommodate current pay plan policy, relevant dates, and insurance provider(s).
DISCUSSION:
The updated Voluntary Reduction in Force Plan benefits the community by helping the City of Aurora address a significant general fund budget deficit without resorting solely to involuntary layoffs. By providing employees with an incentive to voluntarily separate or retire, the City can reduce payroll costs while treating staff with dignity and fairness. This approach minimizes disruption to city services, maintains continuity in critical operations, and supports long-term fiscal stability for the community.
The plan provides severance pay and benefits to eligible employees who voluntarily separate under the program. While this creates an immediate cost to the City, these expenditures are budgeted currently in 2025 as personnel and benefit costs. These costs are offset by long-term salary and benefit savings. The net impact is a reduction in ongoing personnel costs, which helps close the projected general fund deficit. There is no way to predict exact costs due to not yet knowing who will participate in the Plan.
IMPACT STATEMENT:
The voluntary reduction in force is necessary due to a large general fund budget deficit. By implementing this program, the City can reduce its workforce in a measured and respectful way while maintaining essential public services and fiscal responsibility.
RECOMMENDATIONS:
Approval of this plan will authorize the City to implement a voluntary separation program, providing eligible employees with severance pay and benefits as an alternative to involuntary layoffs. Adoption of the plan will help reduce the general fund budget deficit while minimizing disruption to city services and ensuring employees are treated fairly and with dignity.
CITY OF AURORA, ILLINOIS
ORDINANCE NO. _________
DATE OF PASSAGE ________________
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An Ordinance authorizing the 2025 Voluntary Reduction in Force Incentive 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 is facing a large general fund deficit additional, and;
WHEREAS, personnel make up 69 percent of the general fund and reduction in force will be needed to reduce the deficit; and
WHEREAS, the proposed plan will offer severance pay and benefits to eligible employees who voluntarily separate or retire under the program; and
WHEREAS, utilizing this program will minimize the need for involuntary layoffs, while achieving cost savings and supporting the City’s long-term fiscal stability.
NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Aurora, Illinois, as follows:
Section One: The 2025 Voluntary Reduction In Force Incentive Plan (“VRIF Plan”), attached hereto as Exhibit A and incorporated herein by reference, is adopted effective October 15, 2025.
Section Two: Pursuant to the terms of the VRIF Plan, Ex. A, Human Resources is authorized to implement the VRIF Plan and execute any necessary agreements with employees that have been approved through the VRIF Plan process.
Section Three: This Ordinance shall be in full force and effect, and shall be controlling, upon its passage and approval.
Section Four: To whatever extent the provisions of this plan conflict with provisions of any previously enacted pay plans or personnel policies, other than collective bargaining agreements, the provisions of this plan shall control.