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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 ________________
title
An Ordinance Authorizing a Reduction in Force Severance Plan
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WHEREAS, the City of Aurora h...
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