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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 f...
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