Aurora officials say it could take up to two months of meetings and negotiations with bargaining units to close a projected $18 million general fund budget deficit for the 2011 fiscal year.
The city last week announced it will seek an across-the-board 10 percent reduction in wages and benefits from both unionized and exempt employees for the fiscal year, which begins on Jan. 1.
“The deadline is Dec. 31, but we’d like to get it to the council by November,” Carie Anne Ergo, Aurora’s chief management officer, said on Monday. “We’re reaching out to our 10 bargaining units. Last year it took about six to eight weeks.”
Ergo said no meetings have been held yet with any bargaining unit.
This is the second straight year the city faces a significant revenue gap. Last year, Aurora reduced its headcount by 75 employees through layoffs and voluntary cuts and made other reductions to balance its budget.
In a statement, Aurora Mayor Tom Weisner called on employee bargaining units to step up and help the city reduce a gap caused by declining property tax revenue.
“I am hopeful that our employees will once again be willing make the sacrifices necessary to save jobs and maintain critical service levels during these difficult economic times,” Weisner said.
The statement did not suggest any job cuts were imminent and will ask the city’s 10 bargaining units — representing 832 employees — to accept cuts. The city can implement 10 percent cuts for 132 management and non-exempt employees.
Aurora is still considering cost-of-living adjustments, postponing step increases, adjustments in health care premiums and cuts in work hours and furloughs.
The city also announced a voluntary reduction in force incentive to encourage eligible employees to leave city employment by December.
“The recession has resulted in lower wages for millions of Americans in the private sector,” said Weisner in the statement. “In the face of reduced revenues, governments’ number one priority must be to reduce operational and personnel costs, not raise taxes.”
